Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 26, 2016 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | BARNES GROUP INC | |
Entity Central Index Key | 9,984 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 53,814,441 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Statement [Abstract] | ||||
Net sales | $ 311,561 | $ 291,434 | $ 906,586 | $ 906,949 |
Cost of sales | 198,600 | 191,132 | 582,028 | 593,609 |
Selling and administrative expenses | 61,144 | 56,555 | 183,754 | 175,049 |
Total operating costs and expenses | 259,744 | 247,687 | 765,782 | 768,658 |
Operating income | 51,817 | 43,747 | 140,804 | 138,291 |
Interest expense | 3,020 | 2,637 | 8,826 | 7,944 |
Other expense (income), net | 621 | (545) | 24 | (228) |
Income before income taxes | 48,176 | 41,655 | 131,954 | 130,575 |
Income taxes | 11,348 | 7,984 | 33,066 | 33,601 |
Net income | $ 36,828 | $ 33,671 | $ 98,888 | $ 96,974 |
Per common share: | ||||
Basic (in dollars per share) | $ 0.68 | $ 0.61 | $ 1.82 | $ 1.76 |
Diluted (in dollars per share) | 0.67 | 0.61 | 1.81 | 1.74 |
Dividends (in dollars per share) | $ 0.13 | $ 0.12 | $ 0.38 | $ 0.36 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 54,206,064 | 55,199,315 | 54,206,798 | 55,140,774 |
Diluted (in shares) | 54,572,315 | 55,588,092 | 54,643,739 | 55,647,971 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income | $ 36,828 | $ 33,671 | $ 98,888 | $ 96,974 | |
Other comprehensive income (loss), net of tax | |||||
Unrealized (loss) gain on hedging activities, net of tax (1) | [1] | (150) | (174) | (580) | 127 |
Foreign currency translation adjustments, net of tax (2) | [2] | 990 | (22,722) | 2,100 | (38,847) |
Defined benefit pension and other postretirement benefits, net of tax (3) | [3] | 2,042 | 3,592 | 5,740 | 9,043 |
Total other comprehensive income (loss), net of tax | 2,882 | (19,304) | 7,260 | (29,677) | |
Total comprehensive income | 39,710 | 14,367 | 106,148 | 67,297 | |
Unrealized (loss) gain on hedging activities, tax | 1 | (96) | (141) | (64) | |
Foreign currency translation adjustment, tax | 31 | (188) | 105 | (1,569) | |
Defined benefit pension and other postretirement benefits, tax | $ 977 | $ 1,383 | $ 2,930 | $ 4,150 | |
[1] | Net of tax of $1 and $(96) for the three months ended September 30, 2016 and 2015, respectively, and $(141) and $(64) for the nine months ended September 30, 2016 and 2015, respectively. | ||||
[2] | Net of tax of $31 and $(188) for the three months ended September 30, 2016 and 2015, respectively, and $105 and $(1,569) for the nine months ended September 30, 2016 and 2015, respectively. | ||||
[3] | Net of tax of $977 and $1,383 for the three months ended September 30, 2016 and 2015, respectively, and $2,930 and $4,150 for the nine months ended September 30, 2016 and 2015, respectively. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 71,941 | $ 83,926 |
Accounts receivable, less allowances (2016 - $4,343; 2015 - $4,085) | 287,293 | 261,757 |
Inventories | 233,409 | 208,611 |
Deferred income taxes | 0 | 24,825 |
Prepaid expenses and other current assets | 32,282 | 32,469 |
Total current assets | 624,925 | 611,588 |
Deferred income taxes | 19,375 | 1,139 |
Property, plant and equipment | 775,424 | 714,807 |
Less accumulated depreciation | (432,954) | (405,951) |
Property, plant and equipment, net | 342,470 | 308,856 |
Goodwill | 666,040 | 587,992 |
Other intangible assets, net | 542,083 | 528,322 |
Other assets | 26,990 | 23,969 |
Total assets | 2,221,883 | 2,061,866 |
Current liabilities | ||
Notes and overdrafts payable | 13,200 | 22,680 |
Accounts payable | 109,050 | 97,035 |
Accrued liabilities | 146,357 | 114,867 |
Deferred revenue and customer advances | 35,120 | 16,453 |
Long-term debt - current | 2,211 | 1,515 |
Total current liabilities | 305,938 | 252,550 |
Long-term debt | 512,060 | 485,711 |
Accrued retirement benefits | 99,749 | 112,888 |
Deferred income taxes | 75,616 | 62,364 |
Other liabilities | 24,898 | 20,600 |
Commitments and contingencies (Note 13) | ||
Stockholders' equity | ||
Common stock - par value $0.01 per share Authorized: 150,000,000 shares Issued: at par value (2016 - 62,579,299 shares; 2015 - 62,071,144 shares) | 626 | 621 |
Additional paid-in capital | 438,410 | 427,558 |
Treasury stock, at cost (2016 - 8,765,055 shares; 2015 - 8,206,683 shares) | (246,962) | (226,421) |
Retained earnings | 1,147,540 | 1,069,247 |
Accumulated other non-owner changes to equity | (135,992) | (143,252) |
Total stockholders' equity | 1,203,622 | 1,127,753 |
Total liabilities and stockholders' equity | $ 2,221,883 | $ 2,061,866 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Allowance for doubtful accounts | $ 4,343 | $ 4,085 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 62,579,299 | 62,071,144 |
Treasury stock, at cost (in shares) | 8,765,055 | 8,206,683 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Operating activities: | ||
Net income | $ 98,888 | $ 96,974 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 58,949 | 59,249 |
Gain on disposition of property, plant and equipment | (475) | (1,269) |
Stock compensation expense | 8,620 | 6,934 |
Changes in assets and liabilities, net of the effect of acquisitions: | ||
Accounts receivable | (18,461) | 2,221 |
Inventories | 4,626 | (3,593) |
Prepaid expenses and other current assets | (296) | (7,617) |
Accounts payable | 9,799 | 8,667 |
Accrued liabilities, deferred revenue and customer advances | 13,028 | (8,026) |
Deferred income taxes | 998 | 4,741 |
Long-term retirement benefits | (16,026) | (166) |
Other | 461 | 2,481 |
Net cash provided by operating activities | 160,111 | 160,596 |
Investing activities: | ||
Proceeds from disposition of property, plant and equipment | 715 | 3,311 |
Capital expenditures | (32,920) | (31,412) |
Business acquisitions, net of cash acquired | (120,675) | (43,485) |
Component Repair Program payments | (900) | (19,000) |
Net cash used by investing activities | (153,780) | (90,586) |
Financing activities: | ||
Net change in other borrowings | (9,321) | 2,491 |
Payments on long-term debt | (263,578) | (137,699) |
Proceeds from the issuance of long-term debt | 288,982 | 107,766 |
Proceeds from the issuance of common stock | 2,463 | 11,183 |
Common stock repurchases | (15,660) | (12,082) |
Dividends paid | (20,444) | (19,713) |
Withholding taxes paid on stock issuances | (4,881) | (4,898) |
Other | 3,406 | 6,341 |
Net cash used by financing activities | (19,033) | (46,611) |
Effect of exchange rate changes on cash flows | 717 | (3,675) |
(Decrease) increase in cash and cash equivalents | (11,985) | 19,724 |
Cash and cash equivalents at beginning of period | 83,926 | 46,039 |
Cash and cash equivalents at end of period | 71,941 | $ 65,763 |
Liabilities recognized in connection to acquisition | $ 12,436 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The accompanying unaudited consolidated balance sheet and the related unaudited consolidated statements of income, comprehensive income and cash flows have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The consolidated financial statements do not include all information and notes required by accounting principles generally accepted in the United States of America for complete financial statements. The balance sheet as of December 31, 2015 has been derived from the 2015 financial statements of Barnes Group Inc. (the “Company”). For additional information, please refer to the consolidated financial statements and notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 . In the opinion of management, all adjustments, including normal recurring accruals considered necessary for a fair statement of the results, have been included. Operating results for the nine-month period ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 . Certain reclassifications have been made to prior year amounts. |
Acquisition
Acquisition | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisition | Acquisition On August 31, 2016, the Company, through three of its subsidiaries (collectively, the “Purchaser”), completed substantially all of its acquisition of the molds business of Adval Tech Holding AG and Adval Tech Holdings (Asia) Pte. Ltd. ("FOBOHA") (collectively, the “Sellers”). FOBOHA is headquartered in Haslach, Germany and operates out of three manufacturing facilities located in Germany, Switzerland and China. The Company completed it's purchase of the Germany and Switzerland businesses on August 31, 2016. The purchase of the China business required government approval which was granted on September 30, 2016. On October 7, 2016, shares of the China operations were subsequently transferred to the Company upon payment, per the terms of the Sale and Purchase Agreement for these respective operations ("China SPA"). The Company, pursuant to the terms and conditions within the Sale and Purchase Agreement ("FOBOHA SPA"), assumed economic control of the China business effective August 31, 2016. Having both economic control and the benefits and risks of ownership during the period from August 31, 2016 through September 30, 2016, the Company included the results of the China business within the consolidated results of operations of the Company during this period. FOBOHA specializes in the development and manufacture of complex plastic injection molds for packaging, medical, consumer and automotive applications. The Company acquired FOBOHA for an aggregate cash purchase price of CHF 140,762 ( $143,094 ), which is subject to post closing adjustments under the terms of the FOBOHA SPA. The Company paid CHF 128,528 ( $130,658 ) in cash, using cash on hand and borrowings under the Company's revolving credit facility and recorded a payable to the Sellers of CHF 9,334 ( $9,489 ) for the China operations and a liability of CHF 2,900 ( $2,947 ) related to the estimated post closing adjustments, both of which are included within accrued liabilities on the consolidated balance sheet as of September 30, 2016. The purchase price includes preliminary adjustments under the terms of the FOBOHA SPA, including approximately CHF 11,342 ( $11,530 ) related to cash acquired. In connection with the acquisition, the Company recorded $37,600 of intangible assets and $73,753 of goodwill. See Note 5 to the Consolidated Financial Statements. Pro forma operating results for the FOBOHA acquisition are not presented as the results would not be significantly different than historical results. During the nine months ended September 30, 2016, the Company incurred $2,118 of acquisition-related costs related to the FOBOHA acquisition. These costs include due diligence costs and transaction costs to complete the acquisition and have been recognized in the Consolidated Statements of Income as selling and administrative expenses. The operating results of FOBOHA have been included in the Consolidated Statements of Income since the date of acquisition. The Company reported $4,032 in net sales for the period from the acquisition date through September 30, 2016. FOBOHA results have been included within the Industrial segment's operating profit. |
Net Income Per Common Share
Net Income Per Common Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | Net Income Per Common Share For the purpose of computing diluted net income per common share, the weighted-average number of common shares outstanding is increased for the potential dilutive effects of stock-based incentive plans. For the purpose of computing diluted net income per common share, the weighted-average number of common shares outstanding was increased by 366,251 and 388,777 for the three-month periods ended September 30, 2016 and 2015 , respectively, and by 436,941 and 507,197 for the nine-month periods ended September 30, 2016 and 2015 , respectively, to account for the potential dilutive effect of stock-based incentive plans. There were no adjustments to net income for the purposes of computing income available to common stockholders for the periods. The calculation of weighted-average diluted shares outstanding excludes all shares that would have been anti-dilutive. During the three-month periods ended September 30, 2016 and 2015 , the Company excluded 209,907 and 209,102 stock options, respectively, from the calculation of weighted-average diluted shares outstanding as the stock options would have been anti-dilutive. During the nine- month periods ended September 30, 2016 and 2015 , the Company excluded 315,440 and 203,001 stock options, respectively, from the calculation of weighted-average diluted shares outstanding as the stock options would have been anti-dilutive. The Company also excluded 31,028 performance share awards from the calculation of weighted-average diluted shares outstanding during the nine- month period ended September 30, 2016 as such awards also would have been anti-dilutive. There were no performance share awards excluded from the calculation of weighted-average diluted shares outstanding during the three- month period ended September 30, 2016 as no awards would have been anti-dilutive. The Company granted 142,000 stock options, 119,814 restricted stock unit awards and 108,400 performance share awards ("PSAs") in February 2016 as part of its annual grant awards. All of the stock options and the restricted stock unit awards vest upon meeting certain service conditions. The restricted stock unit awards are included in basic weighted-average common shares outstanding as they contain nonforfeitable rights to dividend payments. The performance share awards are part of the long-term Performance Share Award Program (the "Awards Program") and are based on performance goals that are driven by a combination of independently measured metrics (depending on the grant year) with each metric being weighted equally. The metrics for awards granted in 2015 include the Company’s total shareholder return (“TSR”), return on invested capital (“ROIC”) and operating income before depreciation and amortization growth. The metrics for the awards granted in 2016 include TSR and ROIC. The TSR and operating income before depreciation and amortization growth metrics are designed to assess the long-term Company performance relative to the performance of companies included in the Russell 2000 Index over a three -year performance period. The ROIC metric is measured based on pre-established Company targets over the same period. The participants can earn from zero to 250% of the target award and the award includes a forfeitable right to dividend equivalents, which are not included in the aggregate target award numbers. The fair value of the TSR portion of the PSA was determined using a Monte Carlo valuation method as the award contains a market condition. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The components of inventories consisted of: September 30, 2016 December 31, 2015 Finished goods $ 70,221 $ 76,836 Work-in-process 105,495 77,061 Raw material and supplies 57,693 54,714 $ 233,409 $ 208,611 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill: The following table sets forth the change in the carrying amount of goodwill for each reportable segment and for the Company as of and for the period ended September 30, 2016 : Industrial Aerospace Total Company January 1, 2016 $ 557,206 $ 30,786 $ 587,992 Goodwill acquired 73,753 — 73,753 Foreign currency translation 4,295 — 4,295 September 30, 2016 $ 635,254 $ 30,786 $ 666,040 The changes recorded at Industrial include $73,753 of goodwill resulting from the acquisition of FOBOHA in August 2016. The amount allocated to goodwill reflects the benefits that the Company expects to realize from synergies created by combining the operations of FOBOHA, future enhancements to technology, geographical expansion and FOBOHA's assembled workforce. None of the recognized goodwill is expected to be deductible for income tax purposes. The final purchase price is subject to post-closing adjustments and purchase price allocations are subject to the finalized valuation of certain assets and liabilities, therefore goodwill acquired may require adjustment accordingly. In the second quarter of 2016, management performed its annual impairment testing of goodwill. Based on this assessment, there was no goodwill impairment recognized. Other Intangible Assets: Other intangible assets consisted of: September 30, 2016 December 31, 2015 Range of Life -Years Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Amortized intangible assets: Revenue sharing programs (RSPs) Up to 30 $ 293,700 $ (93,142 ) $ 293,700 $ (84,629 ) Component repair programs (CRPs) Up to 30 111,839 (9,243 ) 111,839 (6,054 ) Customer lists/relationships 10-16 213,066 (50,283 ) 194,566 (41,786 ) Patents and technology 6-14 84,052 (35,519 ) 69,352 (29,551 ) Trademarks/trade names 10-30 11,950 (9,871 ) 11,950 (9,412 ) Other Up to 15 20,551 (16,115 ) 20,551 (15,413 ) 735,158 (214,173 ) 701,958 (186,845 ) Unamortized intangible assets: Trade names 42,770 — 38,370 — Foreign currency translation (21,672 ) — (25,161 ) — Total other intangible assets $ 756,256 $ (214,173 ) $ 715,167 $ (186,845 ) Estimated amortization of intangible assets for future periods is as follows: 2016 - $37,000 ; 2017 - $41,000 ; 2018 - $42,000 ; 2019 - $40,000 and 2020 - $38,000 . In connection with the acquisition of FOBOHA in August 2016, the Company recorded intangible assets of $37,600 , which includes $18,500 of customer relationships, $14,700 of patents and technology and $4,400 of an indefinite life trade name. The weighted-average useful lives of the acquired amortizable assets were 16 years and 7 years, respectively. In the second quarter of 2016 management performed its annual impairment testing of its trade names, indefinite-lived intangible assets. Based on this assessment, there was no impairment recognized. The Company entered into Component Repair Programs ("CRPs") with General Electric ("GE") during the fourth quarter of 2013 ("CRP 1"), the second quarter of 2014 ("CRP 2") and the fourth quarter of 2015 ("CRP 3"). The CRPs provide for, among other items, the right to sell certain aftermarket component repair services for CFM56, CF6, CF34 and LM engines directly to other customers as one of a few GE licensed suppliers. In addition, the CRPs extend certain existing contracts under which the Company currently provides these services directly to GE. The Company agreed to pay $26,639 as consideration for the rights related to CRP 1. Of this balance, the Company paid $16,639 in the fourth quarter of 2013, $9,100 in the fourth quarter of 2014, and $900 in the first quarter of 2016. The Company agreed to pay $80,000 as consideration for the rights related to CRP 2. The Company paid $41,000 in the second quarter of 2014, $20,000 in the fourth quarter of 2014 and $19,000 in the second quarter of 2015. The Company agreed to pay $5,200 as consideration for the rights related to CRP 3. Of this balance, the Company paid $2,000 in the fourth quarter of 2015 and the remaining payment of $3,200 is due by December 31, 2016 and has been included within accrued liabilities. The Company recorded the CRP payments as an intangible asset which is recognized as a reduction of sales over the remaining useful life of these engine programs. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company's debt agreements contain financial covenants that require the maintenance of interest coverage and leverage ratios. The Company is in compliance with its financial covenants as of September 30, 2016 , and continues to monitor its future compliance based on current and anticipated future economic conditions. Long-term debt and notes and overdrafts payable at September 30, 2016 and December 31, 2015 consisted of: September 30, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value Revolving credit agreement $ 406,410 $ 407,881 $ 379,700 $ 375,188 3.97% Senior Notes 100,000 108,447 100,000 102,484 Borrowings under lines of credit and overdrafts 13,200 13,200 22,680 22,680 Capital leases 6,175 6,398 7,105 7,503 Other foreign bank borrowings 1,686 1,653 421 410 527,471 537,579 509,906 508,265 Less current maturities (15,411 ) (24,195 ) Long-term debt $ 512,060 $ 485,711 In September 2013, the Company entered into a second amendment to its fifth amended and restated revolving credit agreement (the "Amended Credit Agreement") and retained Bank of America, N.A. as the administrative agent for the lenders. The $750,000 Amended Credit Agreement matures in September 2018 . The Amended Credit Agreement added a new foreign subsidiary borrower in Germany, Barnes Group Acquisition GmbH, and included an accordion feature to increase the borrowing availability of the Company to $1,000,000 . The Company may exercise the accordion feature upon request to the Administrative Agent as long as an event of default has not occurred or is continuing. The borrowing availability of $750,000 , pursuant to the terms of the Amended Credit Agreement, allows for Euro-denominated borrowings equivalent to $500,000 . Borrowings under the Amended Credit Agreement bear interest at LIBOR plus a spread ranging from 1.10% to 1.70% depending on the Company's leverage ratio at prior quarter end. Borrowings and availability under the Amended Credit Agreement were $ 406,410 and $ 343,590 , respectively, at September 30, 2016 and $379,700 and $370,300 , respectively, at December 31, 2015. The average interest rate on these borrowings was 1.62% and 1.50% on September 30, 2016 and December 31, 2015, respectively. During the third quarter, the Company borrowed $100,000 under the Amended Credit Facility through an international subsidiary. The proceeds were distributed to the Parent Company and subsequently used to pay down U.S. borrowings under the Amended Credit Agreement. The fair value of the borrowings is based on observable Level 2 inputs. The borrowings were valued using discounted cash flows based upon the Company's estimated interest costs for similar types of borrowings. In October 2014, the Company entered into a Note Purchase Agreement (“Note Purchase Agreement”), among the Company and New York Life Insurance Company, New York Life Insurance and Annuity Corporation and New York Life Insurance and Annuity Corporation Institutionally Owned Life Insurance Separate Account, as purchasers, for the issuance of $100,000 aggregate principal amount of 3.97% Senior Notes due October 17, 2024 (the “ 3.97% Senior Notes”). The Company completed funding of the transaction and issued the 3.97% Senior Notes on October 17, 2014 . The 3.97% Senior Notes are senior unsecured obligations of the Company and the Company pays interest semi-annually on April 17 and October 17 of each year at an annual rate of 3.97% . The 3.97% Senior Notes will mature on October 17, 2024 unless earlier prepaid in accordance with their terms. Subject to certain conditions, the Company may, at its option, prepay all or any part of the 3.97% Senior Notes in an amount equal to 100% of the principal amount of the 3.97% Senior Notes so prepaid, plus any accrued and unpaid interest to the date of prepayment, plus the Make-Whole Amount, as defined in the Note Purchase Agreement, with respect to such principal amount being prepaid. The fair value of the 3.97% Senior Notes was determined using the US Treasury yield and a long-term credit spread for similar types of borrowings, that represent Level 2 observable inputs. The Company's borrowing capacity may be limited by various debt covenants in the Amended Credit Agreement and the Note Purchase Agreement (the "Agreements"). The Agreements contain customary affirmative and negative covenants, including, among others, limitations on indebtedness, liens, investments, restricted payments, dispositions and business activities. The Agreements require the Company to maintain a ratio of Consolidated Senior Debt, as defined, to Consolidated EBITDA, as defined, of not more than 3.25 times at the end of each fiscal quarter, provided that such ratio may increase to 3.50 times following the consummation of certain acquisitions. In addition, the Agreements require the Company to maintain (i) a ratio of Consolidated Total Debt, as defined, to Consolidated EBITDA of not more than 4.00 times at the end of each fiscal quarter, provided that such ratio may increase to 4.25 times following the consummation of certain acquisitions, and (ii) a ratio of Consolidated EBITDA to Consolidated Cash Interest Expense, as defined, of not less than 4.25 times at the end of any fiscal quarter. In addition, the Company has available approximately $56,000 in uncommitted short-term bank credit lines ("Credit Lines") and overdraft facilities. Under the Credit Lines, $13,200 was borrowed at September 30, 2016 at an average interest rate of 1.38% and $22,500 was borrowed at December 31, 2015 at an average interest rate of 1.56% . The Company had also borrowed $0 and $180 under the overdraft facilities at September 30, 2016 and December 31, 2015 , respectively. Repayments under the Credit Lines are due within one month after being borrowed. Repayments of the overdrafts are generally due within two days after being borrowed. The carrying amounts of the Credit Lines and overdrafts approximate fair value due to the short maturities of these financial instruments. The Company has capital leases at the Thermoplay and Männer businesses. The fair value of the capital leases is based on observable Level 2 inputs. These instruments are valued using discounted cash flows based upon the Company's estimated interest costs for similar types of borrowings. The Company also has other foreign bank borrowings, including borrowings at FOBOHA. The fair value of the other foreign bank borrowings is based on observable Level 2 inputs. These instruments are valued using discounted cash flows based upon the Company's estimated interest costs for similar types of borrowings. |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives The Company has manufacturing and sales facilities around the world and thus makes investments and conducts business transactions denominated in various currencies. The Company is also exposed to fluctuations in interest rates and commodity price changes. These financial exposures are monitored and managed by the Company as an integral part of its risk management program. Financial instruments have been used by the Company to hedge its exposure to fluctuations in interest rates. In 2012, the Company entered into five -year interest rate swap agreements transacted with three banks which together convert the interest on the first $100,000 of the Company's one-month LIBOR-based borrowings from a variable rate plus the borrowing spread to a fixed rate of 1.03% plus the borrowing spread. These interest rate swap agreements were accounted for as cash flow hedges. The Company also uses financial instruments to hedge its exposures to fluctuations in foreign currency exchange rates. The Company has various contracts outstanding which primarily hedge recognized assets or liabilities, and anticipated transactions in various currencies including the Euro, British pound sterling, U.S. dollar, Canadian dollar, Japanese yen, Singapore dollar, Korean won, Swedish kroner, Chinese renminbi, Mexican peso and Swiss franc. Certain foreign currency derivative instruments are treated as cash flow hedges of forecasted transactions. All foreign exchange contracts are due within two years . The Company does not use derivatives for speculative or trading purposes or to manage commodity exposures. Changes in the fair market value of derivatives that qualify as fair value hedges or cash flow hedges are recorded directly to earnings or accumulated other non-owner changes to equity, depending on the designation. Amounts recorded to accumulated other non-owner changes to equity are reclassified to earnings in a manner that matches the earnings impact of the hedged transaction. Any ineffective portion, or amounts related to contracts that are not designated as hedges, are recorded directly to earnings. The Company's policy for classifying cash flows from derivatives is to report the cash flows consistent with the underlying hedged item. Other financing cash flows during the first nine months of 2016, as presented on the consolidated statements of cash flows, include $3,822 of net cash inflows from the settlement of foreign currency hedges related to intercompany financing. The following table sets forth the fair value amounts of derivative instruments held by the Company. September 30, 2016 December 31, 2015 Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Derivatives designated as hedging instruments: Interest rate contracts $ — $ (238 ) $ — $ (357 ) Foreign exchange contracts — (355 ) 484 — Derivatives not designated as hedging instruments: Foreign exchange contracts 74 (333 ) 215 (101 ) Total derivatives $ 74 $ (926 ) $ 699 $ (458 ) Asset derivatives are recorded in prepaid expenses and other current assets in the accompanying consolidated balance sheets. Liability derivatives related to interest rate contracts and foreign exchange contracts are recorded in other liabilities and accrued liabilities, respectively, in the accompanying consolidated balance sheets. The following table sets forth the (loss) gain, net of tax, recorded in accumulated other comprehensive income (loss), net of tax, for the three- and nine- month periods ended September 30, 2016 and 2015 for derivatives held by the Company and designated as hedging instruments. Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 Cash flow hedges: Interest rate contracts $ 137 $ (151 ) $ 74 $ (320 ) Foreign exchange contracts (287 ) (23 ) (654 ) 447 $ (150 ) $ (174 ) $ (580 ) $ 127 Amounts related to the interest rate swaps included within accumulated other comprehensive income (loss) that were reclassified to expense during the first nine months of 2016 and 2015 resulted in a fixed rate of interest of 1.03% plus the borrowing spread for the first $100,000 of one-month LIBOR borrowings. Additionally, there were no amounts recognized in income for hedge ineffectiveness during the three- and nine-month periods ended September 30, 2016 and 2015 . The following table sets forth the net (loss) gain recorded in other expense (income), net in the consolidated statements of income for the three- and nine-month periods ended September 30, 2016 and 2015 for non-designated derivatives held by the Company. Such amounts were substantially offset by the net (gain) loss recorded on the underlying hedged asset or liability, also recorded in other expense (income), net. Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 Foreign exchange contracts $ (3,755 ) $ (2,431 ) $ (7,506 ) $ 4,514 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The provisions of the accounting standard for fair value define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This standard classifies the inputs used to measure fair value into the following hierarchy: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities Level 2 Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability Level 3 Unobservable inputs for the asset or liability The following table provides the financial assets and financial liabilities reported at fair value and measured on a recurring basis: Fair Value Measurements Using Description Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) September 30, 2016 Asset derivatives $ 74 $ — $ 74 $ — Liability derivatives (926 ) — (926 ) — Bank acceptances 9,946 — 9,946 — Rabbi trust assets 2,187 2,187 — — $ 11,281 $ 2,187 $ 9,094 $ — December 31, 2015 Asset derivatives $ 699 $ — $ 699 $ — Liability derivatives (458 ) — (458 ) — Bank acceptances 10,823 — 10,823 — Rabbi trust assets 2,159 2,159 — — $ 13,223 $ 2,159 $ 11,064 $ — The derivative contracts are valued using observable current market information as of the reporting date such as the prevailing LIBOR-based interest rates and foreign currency spot and forward rates. Bank acceptances represent financial instruments accepted from certain Chinese customers in lieu of cash paid on receivables, generally range from three to six months in maturity and are guaranteed by banks. The carrying amounts of the bank acceptances, which are included within prepaid expenses and other current assets, approximate fair value due to their short maturities. The fair values of rabbi trust assets are based on quoted market prices from various financial exchanges. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 9 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits Pension and other postretirement benefits expenses consisted of the following: Three months ended September 30, Nine months ended September 30, Pensions 2016 2015 2016 2015 Service cost $ 1,354 $ 1,374 $ 4,056 $ 4,126 Interest cost 4,869 4,976 14,650 14,968 Expected return on plan assets (7,564 ) (8,048 ) (22,774 ) (24,207 ) Amortization of prior service cost 52 76 157 231 Amortization of actuarial losses 2,697 3,730 8,109 11,215 Net periodic benefit cost $ 1,408 $ 2,108 $ 4,198 $ 6,333 Three months ended September 30, Nine months ended September 30, Other Postretirement Benefits 2016 2015 2016 2015 Service cost $ 31 $ 36 $ 92 $ 109 Interest cost 440 459 1,324 1,377 Amortization of prior service credit (93 ) (141 ) (280 ) (423 ) Amortization of actuarial losses 134 253 401 758 Net periodic benefit cost $ 512 $ 607 $ 1,537 $ 1,821 As planned, the Company made a $15,000 discretionary contribution to the U.S. qualified pension plans in March 2016. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's effective tax rate for the first nine months of 2016 was 25.1% compared with 25.7% in the first nine months of 2015 and 23.2% for the full year 2015. The increase in the first nine months of 2016 effective tax rate from the full year 2015 rate is primarily due to the expiration of certain tax holidays, the absence of the 2015 refund of withholding taxes and the projected change in the mix of earnings attributable to higher-taxing jurisdictions, partially offset by lower planned repatriation of a portion of current year foreign earnings to the U.S and the excess tax benefit on stock awards, reflecting the amended guidance related to share-based payments made to employees. See Note 14 of the Consolidated Financial Statements. The Aerospace and Industrial segments were previously awarded international tax holidays. All significant tax holidays for which the Company currently receives benefit are expected to expire in 2016 and 2017. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) by Component | 9 Months Ended |
Sep. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Changes in Accumulated Other Comprehensive Income by Component | Changes in Accumulated Other Comprehensive Income (Loss) by Component The following table sets forth the changes in accumulated other comprehensive income (loss), net of tax, by component for the nine month periods ended September 30, 2016 and 2015 : Gains and Losses on Cash Flow Hedges Pension and Other Postretirement Benefit Items Foreign Currency Items Total January 1, 2016 $ 115 $ (105,703 ) $ (37,664 ) $ (143,252 ) Other comprehensive (loss) income before reclassifications to consolidated statements of income (823 ) 283 2,100 1,560 Amounts reclassified from accumulated other comprehensive income to the consolidated statements of income 243 5,457 — 5,700 Net current-period other comprehensive (loss) income (580 ) 5,740 2,100 7,260 September 30, 2016 $ (465 ) $ (99,963 ) $ (35,564 ) $ (135,992 ) Gains and Losses on Cash Flow Hedges Pension and Other Postretirement Benefit Items Foreign Currency Items Total January 1, 2015 $ (732 ) $ (115,289 ) $ 16,568 $ (99,453 ) Other comprehensive (loss) income before reclassifications to consolidated statements of income (665 ) 1,412 (38,847 ) (38,100 ) Amounts reclassified from accumulated other comprehensive income to the consolidated statements of income 792 7,631 — 8,423 Net current-period other comprehensive income (loss) 127 9,043 (38,847 ) (29,677 ) September 30, 2015 $ (605 ) $ (106,246 ) $ (22,279 ) $ (129,130 ) The following table sets forth the reclassifications out of accumulated other comprehensive income (loss) by component for the three- and nine- month periods ended September 30, 2016 and 2015 : Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Consolidated Statements of Income Three months ended September 30, 2016 Three months ended September 30, 2015 Gains and losses on cash flow hedges Interest rate contracts $ (137 ) $ (214 ) Interest expense Foreign exchange contracts (20 ) (137 ) Net sales (157 ) (351 ) Total before tax 55 110 Tax benefit (102 ) (241 ) Net of tax Pension and other postretirement benefit items Amortization of prior-service credits, net $ 41 $ 65 (A) Amortization of actuarial losses (2,831 ) (3,983 ) (A) (2,790 ) (3,918 ) Total before tax 977 1,383 Tax benefit (1,813 ) (2,535 ) Net of tax Total reclassifications in the period $ (1,915 ) $ (2,776 ) (A) These accumulated other comprehensive income (loss) components are included within the computation of net periodic pension cost. See Note 9. Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Consolidated Statements of Income Nine months ended September 30, 2016 Nine months ended September 30, 2015 Gains and losses on cash flow hedges Interest rate contracts $ (437 ) $ (642 ) Interest expense Foreign exchange contracts 40 (499 ) Net sales (397 ) (1,141 ) Total before tax 154 349 Tax benefit (243 ) (792 ) Net of tax Pension and other postretirement benefit items Amortization of prior-service credits, net $ 123 $ 192 (A) Amortization of actuarial losses (8,510 ) (11,973 ) (A) (8,387 ) (11,781 ) Total before tax 2,930 4,150 Tax benefit (5,457 ) (7,631 ) Net of tax Total reclassifications in the period $ (5,700 ) $ (8,423 ) (A) These accumulated other comprehensive income (loss) components are included within the computation of net periodic pension cost. See Note 9. |
Information on Business Segment
Information on Business Segments | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Information on Business Segments | Information on Business Segments The Company is organized based upon the nature of its products and services and reports under two global business segments: Industrial and Aerospace. Segment information is consistent with how management reviews the businesses, makes investing and resource allocation decisions and assesses operating performance. The Company has not aggregated operating segments for purposes of identifying these two reportable segments. The Industrial segment is a global manufacturer of highly-engineered, high-quality precision components, products and systems for critical applications serving a diverse customer base in end-markets such as transportation, industrial equipment, consumer products, packaging, electronics, medical devices, and energy. Focused on innovative custom solutions, Industrial participates in the design phase of components and assemblies whereby customers receive the benefits of application and systems engineering, new product development, testing and evaluation, and the manufacturing of final products. Products are sold primarily through its direct sales force and global distribution channels. Industrial consists of three strategic business units that include Molding Solutions, Nitrogen Gas Products and Engineered Components. Industrial's Molding Solutions businesses design and manufacture customized hot runner systems, advanced mold cavity sensors and process control systems, and precision high cavitation mold assemblies - collectively, the enabling technologies for many complex injection molding applications. Industrial's Nitrogen Gas Products business manufactures nitrogen gas springs for the tool and die industry and manifold systems used to precisely control stamping presses. It also specializes in gas hydraulic suspension systems for heavy duty off road vehicles. Industrial's Engineered Components businesses manufacture and supply precision mechanical products used in transportation and industrial applications, including mechanical springs, high-precision punched and fine-blanked components, and retention rings. The Aerospace segment is a global provider of fabricated and precision-machined components and assemblies for original equipment manufacturer ("OEM") turbine engine, airframe and industrial gas turbine builders, and the military. The Aerospace Aftermarket provides jet engine component maintenance overhaul and repair ("MRO") services, including our Component Repair Programs ("CRP's"), for many of the world's major turbine engine manufacturers, commercial airlines and the military. The Aerospace Aftermarket activities also include the manufacture and delivery of aerospace aftermarket spare parts, including the revenue sharing programs ("RSPs") under which the Company receives an exclusive right to supply designated aftermarket parts over the life of the related aircraft engine program. The following tables set forth information about the Company's operations by its two reportable segments: Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 Net sales Industrial $ 208,748 $ 189,106 $ 608,534 $ 592,044 Aerospace 102,816 102,329 298,055 314,910 Intersegment sales (3 ) (1 ) (3 ) (5 ) Total net sales $ 311,561 $ 291,434 $ 906,586 $ 906,949 Operating profit Industrial $ 34,958 $ 27,304 $ 99,445 $ 88,262 Aerospace 16,859 16,443 41,359 50,029 Total operating profit 51,817 43,747 140,804 138,291 Interest expense 3,020 2,637 8,826 7,944 Other expense (income), net 621 (545 ) 24 (228 ) Income before income taxes $ 48,176 $ 41,655 $ 131,954 $ 130,575 September 30, 2016 December 31, 2015 Assets Industrial (A) $ 1,441,695 $ 1,241,206 Aerospace 637,232 654,147 Other (B) 142,956 166,513 Total assets $ 2,221,883 $ 2,061,866 (A ) The change in assets within the Industrial segment primarily reflects an increase in assets resulting from the acquisition of FOBOHA. (B) "Other" assets include corporate-controlled assets, the majority of which are cash and deferred tax assets. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Product Warranties The Company provides product warranties in connection with the sale of certain products. From time to time, the Company is subject to customer claims with respect to product warranties. Product warranty liabilities were not material as of September 30, 2016 or December 31, 2015 . Contract Matters During the third quarter of 2015 the Company recorded a $2,788 charge related to a contract termination dispute following the decision of a customer, Triumph Actuation Systems - Yakima, LLC ("Triumph"), to in-source work. The Company has approximately $8,000 of net assets, in connection with this dispute, recorded on the Consolidated Balance Sheet as of September 30, 2016. The Company has assessed recoverability of costs and damages provided by the relevant contracts and, during the fourth quarter of 2015, filed an arbitration demand before the American Arbitration Association for recovery of these costs and damages for approximately $15,000 . Also during the fourth quarter, Triumph responded with a counterclaim of a similar amount, alleging various breaches and seeking damages, which the Company views as unsubstantiated. During 2016, Triumph adjusted the amount of its counterclaim to approximately $23,000 , and the Company adjusted its claim to seek approximately $12,000 . As scheduled in May 2016, the parties arbitrated the matter and the Company continues to view the Triumph counterclaim as unsubstantiated. The Company and Triumph submitted post-hearing filings during the third quarter and are now awaiting the arbiter's decision, which is expected in the fourth quarter of 2016. While it is currently not possible to determine the ultimate outcome of this matter, the Company believes that the ultimate resolution will not have a material adverse effect on the Company’s consolidated financial position or liquidity, but could be material to the consolidated results of operations of any one period. |
Accounting Changes
Accounting Changes | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Changes | Accounting Changes In March 2016, the FASB amended its guidance related to the accounting for certain aspects of share-based payments to employees. The amended guidance requires that all tax effects related to share-based payments are recorded at settlement (or expiration) through the income statement, rather than through equity. Cash flows related to excess tax benefits will no longer be separately classified as a financing activity apart from other income tax cash flows. The amended guidance also allows for an employer to repurchase additional employee shares for tax withholding purposes without requiring liability accounting and clarifies that all cash payments made to tax authorities on an employee’s behalf for withheld shares should be presented as a financing activity on the Consolidated Statements of Cash Flows. The guidance also allows for a policy election to account for forfeitures as they occur, rather than accounting for them on an estimated basis. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The Company elected to early adopt this guidance in the third quarter of 2016. This adoption requires the Company to reflect any adjustments as of January 1, 2016, the beginning of the annual period that includes the interim period of adoption. The most significant impact of adoption was the recognition of excess tax benefits in our provision for income taxes rather than through equity for all periods in fiscal year 2016, which resulted in the recognition of excess tax benefits in our provision for income taxes of $1,530 for the three and nine-month periods ended September 30, 2016. In connection with the additional amendments within the amended guidance, the Company recognized state tax loss carryforwards in the amount of $195 , which impacted retained earnings as of January 1, 2016. The cumulative effect of this change is required to be recorded in retained earnings. The Company has elected to continue to estimate forfeitures expected to occur to determine the amount of compensation cost to be recognized in each period. The presentation requirements for cash flows related to excess tax benefits and employee taxes paid for withheld shares were applied retrospectively to all periods presented. This resulted in an increase in both net cash provided by operating activities and net cash used by financing activities of $1,402 , $2,320 and $7,519 for the three, six and nine month periods ended March 31, June 30 and September 30, 2015, respectively, and $413 and $524 for the three and six month periods ended March 31 and June 30, 2016, respectively. In November 2015, the FASB amended its guidance related to the balance sheet classification of deferred income taxes. The amended guidance removes the requirement to separate and classify deferred income tax liabilities and assets into current and non-current amounts and requires an entity to now classify all deferred tax liabilities and assets as non-current. The amended guidance can be adopted either on a prospective or retrospective basis and is effective for interim and annual periods beginning after December 15, 2016. Early adoption is permitted. The provisions of the amended guidance were adopted on a prospective basis during the first quarter of 2016. The provisions resulted in the classification of $26,072 and $1,173 of current deferred income tax assets and liabilities, respectively, into non-current deferred income tax assets and liabilities, respectively, on the Consolidated Balance Sheet as of September 30, 2016. In April 2015, the FASB amended its guidance related to the presentation of debt issuance costs. The amended guidance specifies that debt issuance costs related to notes shall be reported in the balance sheet as a direct deduction from the face amount of that note and that amortization of debt issuance costs shall be reported as interest expense. The amended guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 and should be applied retrospectively. The Company adopted the guidance during the first quarter of 2016 and it did not have a material impact on its Consolidated Financial Statements. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The components of inventories consisted of: September 30, 2016 December 31, 2015 Finished goods $ 70,221 $ 76,836 Work-in-process 105,495 77,061 Raw material and supplies 57,693 54,714 $ 233,409 $ 208,611 |
Goodwill and Other Intangible22
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table sets forth the change in the carrying amount of goodwill for each reportable segment and for the Company as of and for the period ended September 30, 2016 : Industrial Aerospace Total Company January 1, 2016 $ 557,206 $ 30,786 $ 587,992 Goodwill acquired 73,753 — 73,753 Foreign currency translation 4,295 — 4,295 September 30, 2016 $ 635,254 $ 30,786 $ 666,040 |
Schedule of Finite-Lived Intangible Assets by Major Class | Other intangible assets consisted of: September 30, 2016 December 31, 2015 Range of Life -Years Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Amortized intangible assets: Revenue sharing programs (RSPs) Up to 30 $ 293,700 $ (93,142 ) $ 293,700 $ (84,629 ) Component repair programs (CRPs) Up to 30 111,839 (9,243 ) 111,839 (6,054 ) Customer lists/relationships 10-16 213,066 (50,283 ) 194,566 (41,786 ) Patents and technology 6-14 84,052 (35,519 ) 69,352 (29,551 ) Trademarks/trade names 10-30 11,950 (9,871 ) 11,950 (9,412 ) Other Up to 15 20,551 (16,115 ) 20,551 (15,413 ) 735,158 (214,173 ) 701,958 (186,845 ) Unamortized intangible assets: Trade names 42,770 — 38,370 — Foreign currency translation (21,672 ) — (25,161 ) — Total other intangible assets $ 756,256 $ (214,173 ) $ 715,167 $ (186,845 ) |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Long-term debt and notes and overdrafts payable at September 30, 2016 and December 31, 2015 consisted of: September 30, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value Revolving credit agreement $ 406,410 $ 407,881 $ 379,700 $ 375,188 3.97% Senior Notes 100,000 108,447 100,000 102,484 Borrowings under lines of credit and overdrafts 13,200 13,200 22,680 22,680 Capital leases 6,175 6,398 7,105 7,503 Other foreign bank borrowings 1,686 1,653 421 410 527,471 537,579 509,906 508,265 Less current maturities (15,411 ) (24,195 ) Long-term debt $ 512,060 $ 485,711 |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Gain (Loss) Recorded in Other Expense (Income), Net in Consolidated Statements of Income | The following table sets forth the net (loss) gain recorded in other expense (income), net in the consolidated statements of income for the three- and nine-month periods ended September 30, 2016 and 2015 for non-designated derivatives held by the Company. Such amounts were substantially offset by the net (gain) loss recorded on the underlying hedged asset or liability, also recorded in other expense (income), net. Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 Foreign exchange contracts $ (3,755 ) $ (2,431 ) $ (7,506 ) $ 4,514 |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following table sets forth the (loss) gain, net of tax, recorded in accumulated other comprehensive income (loss), net of tax, for the three- and nine- month periods ended September 30, 2016 and 2015 for derivatives held by the Company and designated as hedging instruments. Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 Cash flow hedges: Interest rate contracts $ 137 $ (151 ) $ 74 $ (320 ) Foreign exchange contracts (287 ) (23 ) (654 ) 447 $ (150 ) $ (174 ) $ (580 ) $ 127 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table sets forth the fair value amounts of derivative instruments held by the Company. September 30, 2016 December 31, 2015 Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Derivatives designated as hedging instruments: Interest rate contracts $ — $ (238 ) $ — $ (357 ) Foreign exchange contracts — (355 ) 484 — Derivatives not designated as hedging instruments: Foreign exchange contracts 74 (333 ) 215 (101 ) Total derivatives $ 74 $ (926 ) $ 699 $ (458 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table provides the financial assets and financial liabilities reported at fair value and measured on a recurring basis: Fair Value Measurements Using Description Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) September 30, 2016 Asset derivatives $ 74 $ — $ 74 $ — Liability derivatives (926 ) — (926 ) — Bank acceptances 9,946 — 9,946 — Rabbi trust assets 2,187 2,187 — — $ 11,281 $ 2,187 $ 9,094 $ — December 31, 2015 Asset derivatives $ 699 $ — $ 699 $ — Liability derivatives (458 ) — (458 ) — Bank acceptances 10,823 — 10,823 — Rabbi trust assets 2,159 2,159 — — $ 13,223 $ 2,159 $ 11,064 $ — |
Pension and Other Postretirem26
Pension and Other Postretirement Benefits (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Net Benefit Costs | Pension and other postretirement benefits expenses consisted of the following: Three months ended September 30, Nine months ended September 30, Pensions 2016 2015 2016 2015 Service cost $ 1,354 $ 1,374 $ 4,056 $ 4,126 Interest cost 4,869 4,976 14,650 14,968 Expected return on plan assets (7,564 ) (8,048 ) (22,774 ) (24,207 ) Amortization of prior service cost 52 76 157 231 Amortization of actuarial losses 2,697 3,730 8,109 11,215 Net periodic benefit cost $ 1,408 $ 2,108 $ 4,198 $ 6,333 Three months ended September 30, Nine months ended September 30, Other Postretirement Benefits 2016 2015 2016 2015 Service cost $ 31 $ 36 $ 92 $ 109 Interest cost 440 459 1,324 1,377 Amortization of prior service credit (93 ) (141 ) (280 ) (423 ) Amortization of actuarial losses 134 253 401 758 Net periodic benefit cost $ 512 $ 607 $ 1,537 $ 1,821 |
Changes in Accumulated Other 27
Changes in Accumulated Other Comprehensive Income (Loss) by Component (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) By Component | The following table sets forth the changes in accumulated other comprehensive income (loss), net of tax, by component for the nine month periods ended September 30, 2016 and 2015 : Gains and Losses on Cash Flow Hedges Pension and Other Postretirement Benefit Items Foreign Currency Items Total January 1, 2016 $ 115 $ (105,703 ) $ (37,664 ) $ (143,252 ) Other comprehensive (loss) income before reclassifications to consolidated statements of income (823 ) 283 2,100 1,560 Amounts reclassified from accumulated other comprehensive income to the consolidated statements of income 243 5,457 — 5,700 Net current-period other comprehensive (loss) income (580 ) 5,740 2,100 7,260 September 30, 2016 $ (465 ) $ (99,963 ) $ (35,564 ) $ (135,992 ) Gains and Losses on Cash Flow Hedges Pension and Other Postretirement Benefit Items Foreign Currency Items Total January 1, 2015 $ (732 ) $ (115,289 ) $ 16,568 $ (99,453 ) Other comprehensive (loss) income before reclassifications to consolidated statements of income (665 ) 1,412 (38,847 ) (38,100 ) Amounts reclassified from accumulated other comprehensive income to the consolidated statements of income 792 7,631 — 8,423 Net current-period other comprehensive income (loss) 127 9,043 (38,847 ) (29,677 ) September 30, 2015 $ (605 ) $ (106,246 ) $ (22,279 ) $ (129,130 ) |
Schedule of Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss) to the Consolidated Statements of Income | The following table sets forth the reclassifications out of accumulated other comprehensive income (loss) by component for the three- and nine- month periods ended September 30, 2016 and 2015 : Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Consolidated Statements of Income Three months ended September 30, 2016 Three months ended September 30, 2015 Gains and losses on cash flow hedges Interest rate contracts $ (137 ) $ (214 ) Interest expense Foreign exchange contracts (20 ) (137 ) Net sales (157 ) (351 ) Total before tax 55 110 Tax benefit (102 ) (241 ) Net of tax Pension and other postretirement benefit items Amortization of prior-service credits, net $ 41 $ 65 (A) Amortization of actuarial losses (2,831 ) (3,983 ) (A) (2,790 ) (3,918 ) Total before tax 977 1,383 Tax benefit (1,813 ) (2,535 ) Net of tax Total reclassifications in the period $ (1,915 ) $ (2,776 ) (A) These accumulated other comprehensive income (loss) components are included within the computation of net periodic pension cost. See Note 9. Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Consolidated Statements of Income Nine months ended September 30, 2016 Nine months ended September 30, 2015 Gains and losses on cash flow hedges Interest rate contracts $ (437 ) $ (642 ) Interest expense Foreign exchange contracts 40 (499 ) Net sales (397 ) (1,141 ) Total before tax 154 349 Tax benefit (243 ) (792 ) Net of tax Pension and other postretirement benefit items Amortization of prior-service credits, net $ 123 $ 192 (A) Amortization of actuarial losses (8,510 ) (11,973 ) (A) (8,387 ) (11,781 ) Total before tax 2,930 4,150 Tax benefit (5,457 ) (7,631 ) Net of tax Total reclassifications in the period $ (5,700 ) $ (8,423 ) (A) These accumulated other comprehensive income (loss) components are included within the computation of net periodic pension cost. See Note 9. |
Information on Business Segme28
Information on Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables set forth information about the Company's operations by its two reportable segments: Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 Net sales Industrial $ 208,748 $ 189,106 $ 608,534 $ 592,044 Aerospace 102,816 102,329 298,055 314,910 Intersegment sales (3 ) (1 ) (3 ) (5 ) Total net sales $ 311,561 $ 291,434 $ 906,586 $ 906,949 Operating profit Industrial $ 34,958 $ 27,304 $ 99,445 $ 88,262 Aerospace 16,859 16,443 41,359 50,029 Total operating profit 51,817 43,747 140,804 138,291 Interest expense 3,020 2,637 8,826 7,944 Other expense (income), net 621 (545 ) 24 (228 ) Income before income taxes $ 48,176 $ 41,655 $ 131,954 $ 130,575 September 30, 2016 December 31, 2015 Assets Industrial (A) $ 1,441,695 $ 1,241,206 Aerospace 637,232 654,147 Other (B) 142,956 166,513 Total assets $ 2,221,883 $ 2,061,866 (A ) The change in assets within the Industrial segment primarily reflects an increase in assets resulting from the acquisition of FOBOHA. (B) "Other" assets include corporate-controlled assets, the majority of which are cash and deferred tax assets. |
Acquisition (Details)
Acquisition (Details) SFr in Thousands, $ in Thousands | Aug. 31, 2016CHF (SFr) | Aug. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2016USD ($) | Aug. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Business Acquisition [Line Items] | ||||||
Goodwill acquired | $ 666,040 | $ 666,040 | $ 587,992 | |||
FOBOHA Business [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash payments | SFr 140,762 | $ 143,094 | ||||
Cash acquired | 11,342 | $ 11,530 | ||||
Intangible assets acquired | 37,600 | |||||
Goodwill acquired | $ 73,753 | |||||
Acquisition-related costs | $ 2,118 | |||||
Net sales | $ 4,032 | |||||
FOBHOA - China Operations [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash payments | 128,528 | 130,658 | ||||
Payable to sellers | 9,334 | 9,489 | ||||
Liabilities incurred | SFr 2,900 | $ 2,947 |
Net Income Per Common Share (De
Net Income Per Common Share (Details) - shares | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Feb. 29, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net Income Per Common Share [Line Items] | |||||
Weighted average number of diluted shares outstanding adjustment (in shares) | 366,251 | 388,777 | 436,941 | 507,197 | |
Stock Options [Member] | |||||
Net Income Per Common Share [Line Items] | |||||
Antidilutive securities excluded from computation of EPS | 209,907 | 209,102 | 315,440 | 203,001 | |
Options, granted (in shares) | 142,000 | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Net Income Per Common Share [Line Items] | |||||
Other than options, granted (in shares) | 119,814 | ||||
Performance Share Awards [Member] | |||||
Net Income Per Common Share [Line Items] | |||||
Antidilutive securities excluded from computation of EPS | 0 | 31,028 | |||
Other than options, granted (in shares) | 108,400 | ||||
Performance period | 3 years | ||||
Minimum range of target award of stock plan | 0.00% | ||||
Maximum range of target award of stock plan | 250.00% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 70,221 | $ 76,836 |
Work-in-process | 105,495 | 77,061 |
Raw material and supplies | 57,693 | 54,714 |
Inventories | $ 233,409 | $ 208,611 |
Goodwill and Other Intangible32
Goodwill and Other Intangible Assets (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
Aug. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2016 | Sep. 30, 2015 | |
Goodwill: | ||||||||||
Goodwill, beginning of period | $ 587,992,000 | $ 587,992,000 | ||||||||
Goodwill acquired | 73,753,000 | |||||||||
Foreign currency translation | 4,295,000 | |||||||||
Goodwill, end of period | $ 587,992,000 | 666,040,000 | ||||||||
Goodwill impairment | $ 0 | |||||||||
Intangible Assets: | ||||||||||
Gross Amount | 701,958,000 | 735,158,000 | ||||||||
Accumulated Amortization | (186,845,000) | (214,173,000) | ||||||||
Amortization of intangible assets expected in 2016 | 37,000,000 | |||||||||
Amortization of intangible assets expected in 2017 | 41,000,000 | |||||||||
Amortization of intangible assets expected in 2018 | 42,000,000 | |||||||||
Amortization of intangible assets expected in 2019 | 40,000,000 | |||||||||
Amortization of intangible assets expected in 2020 | 38,000,000 | |||||||||
Impairment of trade names, indefinite-lived intangible assets | $ 0 | |||||||||
Component Repair Program payments | 900,000 | $ 19,000,000 | ||||||||
Trade names [Member] | ||||||||||
Intangible Assets: | ||||||||||
Gross Amount | 38,370,000 | 42,770,000 | ||||||||
Accumulated Amortization | 0 | 0 | ||||||||
Foreign currency translation [Member] | ||||||||||
Intangible Assets: | ||||||||||
Accumulated Amortization | 0 | 0 | ||||||||
Gross Amount | (25,161,000) | (21,672,000) | ||||||||
Other intangible assets [Member] | ||||||||||
Intangible Assets: | ||||||||||
Gross Amount | 715,167,000 | 756,256,000 | ||||||||
Accumulated Amortization | (186,845,000) | (214,173,000) | ||||||||
Revenue sharing programs (RSPs) [Member] | ||||||||||
Intangible Assets: | ||||||||||
Gross Amount | 293,700,000 | 293,700,000 | ||||||||
Accumulated Amortization | (84,629,000) | $ (93,142,000) | ||||||||
Revenue sharing programs (RSPs) [Member] | Maximum [Member] | ||||||||||
Intangible Assets: | ||||||||||
Range of life | 30 years | |||||||||
Component repair programs (CRPs) [Member] | ||||||||||
Intangible Assets: | ||||||||||
Gross Amount | 111,839,000 | $ 111,839,000 | ||||||||
Accumulated Amortization | (6,054,000) | $ (9,243,000) | ||||||||
Component repair programs (CRPs) [Member] | Maximum [Member] | ||||||||||
Intangible Assets: | ||||||||||
Range of life | 30 years | |||||||||
Customer lists/relationships [Member] | ||||||||||
Intangible Assets: | ||||||||||
Gross Amount | 194,566,000 | $ 213,066,000 | ||||||||
Accumulated Amortization | (41,786,000) | $ (50,283,000) | ||||||||
Customer lists/relationships [Member] | Minimum [Member] | ||||||||||
Intangible Assets: | ||||||||||
Range of life | 10 years | |||||||||
Customer lists/relationships [Member] | Maximum [Member] | ||||||||||
Intangible Assets: | ||||||||||
Range of life | 16 years | |||||||||
Patents and technology [Member] | ||||||||||
Intangible Assets: | ||||||||||
Gross Amount | 69,352,000 | $ 84,052,000 | ||||||||
Accumulated Amortization | (29,551,000) | $ (35,519,000) | ||||||||
Patents and technology [Member] | Minimum [Member] | ||||||||||
Intangible Assets: | ||||||||||
Range of life | 6 years | |||||||||
Patents and technology [Member] | Maximum [Member] | ||||||||||
Intangible Assets: | ||||||||||
Range of life | 14 years | |||||||||
Trademarks/trade names [Member] | ||||||||||
Intangible Assets: | ||||||||||
Gross Amount | 11,950,000 | $ 11,950,000 | ||||||||
Accumulated Amortization | (9,412,000) | $ (9,871,000) | ||||||||
Trademarks/trade names [Member] | Minimum [Member] | ||||||||||
Intangible Assets: | ||||||||||
Range of life | 10 years | |||||||||
Trademarks/trade names [Member] | Maximum [Member] | ||||||||||
Intangible Assets: | ||||||||||
Range of life | 30 years | |||||||||
Other [Member] | ||||||||||
Intangible Assets: | ||||||||||
Gross Amount | 20,551,000 | $ 20,551,000 | ||||||||
Accumulated Amortization | (15,413,000) | $ (16,115,000) | ||||||||
Other [Member] | Maximum [Member] | ||||||||||
Intangible Assets: | ||||||||||
Range of life | 15 years | |||||||||
Component Repair Program One [Member] | ||||||||||
Intangible Assets: | ||||||||||
Component Repair Program payments consideration | $ 26,639,000 | |||||||||
Component Repair Program payments | 900,000 | $ 9,100,000 | $ 16,639,000 | |||||||
Component Repair Program Two [Member] | ||||||||||
Intangible Assets: | ||||||||||
Component Repair Program payments consideration | 80,000,000 | |||||||||
Component Repair Program payments | $ 19,000,000 | $ 20,000,000 | $ 41,000,000 | |||||||
Component Repair Program Three [Member] | ||||||||||
Intangible Assets: | ||||||||||
Component Repair Program payments consideration | 5,200,000 | |||||||||
Component Repair Program payments | 2,000,000 | |||||||||
Component Repair Program Three [Member] | Accrued Liabilities [Member] | ||||||||||
Intangible Assets: | ||||||||||
Component Repair Program payments expected in current fiscal year | 3,200,000 | |||||||||
Industrial [Member] | ||||||||||
Goodwill: | ||||||||||
Goodwill, beginning of period | 557,206,000 | 557,206,000 | ||||||||
Goodwill acquired | 73,753,000 | |||||||||
Foreign currency translation | 4,295,000 | |||||||||
Goodwill, end of period | 557,206,000 | 635,254,000 | ||||||||
Aerospace [Member] | ||||||||||
Goodwill: | ||||||||||
Goodwill, beginning of period | $ 30,786,000 | 30,786,000 | ||||||||
Goodwill acquired | 0 | |||||||||
Foreign currency translation | 0 | |||||||||
Goodwill, end of period | $ 30,786,000 | $ 30,786,000 | ||||||||
FOBOHA Business [Member] | ||||||||||
Goodwill: | ||||||||||
Goodwill, end of period | $ 73,753,000 | |||||||||
Intangible Assets: | ||||||||||
Indefinite-lived and finite-lived intangible assets acquired | 37,600,000 | |||||||||
FOBOHA Business [Member] | Trade names [Member] | ||||||||||
Intangible Assets: | ||||||||||
Indefinite-lived intangible assets acquired | 4,400,000 | |||||||||
FOBOHA Business [Member] | Customer lists/relationships [Member] | ||||||||||
Intangible Assets: | ||||||||||
Finite-lived intangible assets acquired | $ 18,500,000 | |||||||||
Acquired finite-lived intangible assets, weighted-average useful life | 16 years | |||||||||
FOBOHA Business [Member] | Patents and technology [Member] | ||||||||||
Intangible Assets: | ||||||||||
Finite-lived intangible assets acquired | $ 14,700,000 | |||||||||
Acquired finite-lived intangible assets, weighted-average useful life | 7 years |
Debt (Debt Schedule) (Details)
Debt (Debt Schedule) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Fair value of debt | $ 537,579 | $ 508,265 |
Total debt, net of unamortized discounts | 527,471 | 509,906 |
Borrowings under lines of credit and overdrafts | 13,200 | 22,680 |
Less current maturities | (15,411) | (24,195) |
Long-term debt | 512,060 | 485,711 |
Revolving Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Carrying amount of debt | 406,410 | 379,700 |
Fair value of debt | 407,881 | 375,188 |
Senior Notes [Member] | 3.97% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Carrying amount of debt | 100,000 | 100,000 |
Fair value of debt | 108,447 | 102,484 |
Borrowings Under Lines of Credit and Overdrafts [Member] | ||
Debt Instrument [Line Items] | ||
Fair value of debt | 13,200 | 22,680 |
Borrowings under lines of credit and overdrafts | 13,200 | 22,680 |
Capital Lease Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Carrying amount of debt | 6,175 | 7,105 |
Fair value of debt | 6,398 | 7,503 |
Other Foreign Bank Borrowings [Member] | ||
Debt Instrument [Line Items] | ||
Carrying amount of debt | 1,686 | 421 |
Fair value of debt | $ 1,653 | $ 410 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | 1 Months Ended | 9 Months Ended | ||
Sep. 30, 2013USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2015USD ($) | Oct. 31, 2014USD ($) | |
Debt Instrument [Line Items] | ||||
Borrowings under lines of credit and overdrafts | $ 13,200,000 | $ 22,680,000 | ||
Revolving Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Carrying amount of debt | 406,410,000 | 379,700,000 | ||
Line of credit facility, maximum borrowing capacity | $ 750,000,000 | |||
Line of credit facility with accordian feature, maximum borrowing capacity | $ 1,000,000,000 | |||
Remaining borrowing capacity | 343,590,000 | 370,300,000 | ||
Revolving Credit Agreement [Member] | Subsidiaries [Member] | ||||
Debt Instrument [Line Items] | ||||
Carrying amount of debt | $ 100,000,000 | |||
Revolving Credit Agreement [Member] | Euro Member Countries, Euro | ||||
Debt Instrument [Line Items] | ||||
Carrying amount of debt | $ 0 | |||
Stated interest rate | 1.62% | 1.50% | ||
Revolving Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Variable basis spread | 1.10% | |||
Revolving Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Variable basis spread | 1.70% | |||
Senior Notes [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt covenant ratio of EBITDA to cash interest expense | 4.25 | |||
Senior Notes [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt covenant ratio of senior debt to EBITDA | 3.25 | |||
Debt covenant ratio of total debt to EBITDA | 4 | |||
Senior Notes [Member] | 3.97% Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Carrying amount of debt | $ 100,000,000 | $ 100,000,000 | ||
Stated interest rate | 3.97% | |||
Converted amount with accrued interest | $ 100,000,000 | |||
Percent allowed to be prepaid | 100.00% | |||
Senior Notes [Member] | Adjusted for Certain Acquisitons [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt covenant ratio of senior debt to EBITDA | 3.50 | |||
Debt covenant ratio of total debt to EBITDA | 4.25 | |||
Revolving Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 500,000,000 | |||
Lines of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Borrowings under lines of credit and overdrafts | 13,200,000 | $ 22,500,000 | ||
Line of credit facility, maximum borrowing capacity | $ 56,000,000 | |||
Line of credit, interest rate at period end | 1.38% | 1.56% | ||
Bank Overdrafts [Member] | ||||
Debt Instrument [Line Items] | ||||
Borrowings under lines of credit and overdrafts | $ 0 | $ 180,000 | ||
Repayment period | 2 days |
Derivatives (Details)
Derivatives (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | ||
Derivative Assets | $ 74 | $ 699 |
Derivative Liabilities | (926) | (458) |
Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | ||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | ||
Derivative Assets | 0 | 0 |
Derivative Liabilities | (238) | (357) |
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | ||
Derivative Assets | 0 | 484 |
Derivative Liabilities | (355) | 0 |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | ||
Derivative Assets | 74 | 215 |
Derivative Liabilities | $ (333) | $ (101) |
Derivatives (Details 1)
Derivatives (Details 1) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2012USD ($)Bank | |
Derivative [Line Items] | |||||
Maximum remaining maturity of foreign currency derivatives | 2 years | ||||
Derivative, Net Hedge Ineffectiveness Gain (Loss) | $ 0 | $ 0 | $ 0 | $ 0 | |
Net cash losses from settlement | 3,406 | 6,341 | |||
Foreign Exchange Contract [Member] | |||||
Derivative [Line Items] | |||||
Net cash losses from settlement | 3,822 | ||||
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | |||||
Derivative [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | (150) | (174) | (580) | 127 | |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Interest Rate Contract [Member] | |||||
Derivative [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 137 | (151) | 74 | (320) | |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | |||||
Derivative [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | (287) | (23) | (654) | 447 | |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | |||||
Derivative [Line Items] | |||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ (3,755) | $ (2,431) | $ (7,506) | $ 4,514 | |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | |||||
Derivative [Line Items] | |||||
Term of interest rate derivatives | 5 years | ||||
Number of banks transacted with for interest rate swap agreements (in banks) | Bank | 3 | ||||
Derivative amount of hedge | $ 100,000 | ||||
one-month LIBOR [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | |||||
Derivative [Line Items] | |||||
Fixed interest rate | 1.03% |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Asset derivatives | $ 74 | $ 699 |
Liability derivatives | (926) | (458) |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Asset derivatives | 0 | 0 |
Liability derivatives | 0 | 0 |
Bank acceptances | 0 | 0 |
Rabbi trust assets | 2,187 | 2,159 |
Financial assets and financial liabilities, reported at fair value | 2,187 | 2,159 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Asset derivatives | 74 | 699 |
Liability derivatives | (926) | (458) |
Bank acceptances | 9,946 | 10,823 |
Rabbi trust assets | 0 | 0 |
Financial assets and financial liabilities, reported at fair value | 9,094 | 11,064 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Asset derivatives | 0 | 0 |
Liability derivatives | 0 | 0 |
Bank acceptances | 0 | 0 |
Rabbi trust assets | 0 | 0 |
Financial assets and financial liabilities, reported at fair value | 0 | 0 |
Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Asset derivatives | 74 | 699 |
Liability derivatives | (926) | (458) |
Bank acceptances | 9,946 | 10,823 |
Rabbi trust assets | 2,187 | 2,159 |
Financial assets and financial liabilities, reported at fair value | $ 11,281 | $ 13,223 |
Minimum [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Maturity of bank acceptances | 3 months | |
Maximum [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Maturity of bank acceptances | 6 months |
Pension and Other Postretirem38
Pension and Other Postretirement Benefits (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Pensions [Member] | |||||
Pension and other postretirement benefits expenses | |||||
Service cost | $ 1,354 | $ 1,374 | $ 4,056 | $ 4,126 | |
Interest cost | 4,869 | 4,976 | 14,650 | 14,968 | |
Expected return on plan assets | (7,564) | (8,048) | (22,774) | (24,207) | |
Amortization of prior service cost (credit) | 52 | 76 | 157 | 231 | |
Amortization of actuarial losses | 2,697 | 3,730 | 8,109 | 11,215 | |
Net periodic benefit cost | 1,408 | 2,108 | 4,198 | 6,333 | |
Other Postretirement Benefits [Member] | |||||
Pension and other postretirement benefits expenses | |||||
Service cost | 31 | 36 | 92 | 109 | |
Interest cost | 440 | 459 | 1,324 | 1,377 | |
Amortization of prior service cost (credit) | (93) | (141) | (280) | (423) | |
Amortization of actuarial losses | 134 | 253 | 401 | 758 | |
Net periodic benefit cost | $ 512 | $ 607 | $ 1,537 | $ 1,821 | |
United States Pension Plan of US Entity [Member] | |||||
Pension and other postretirement benefits expenses | |||||
Discretionary contributions | $ 15,000 |
Income Taxes (Details)
Income Taxes (Details) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Effective tax rate | 25.10% | 25.70% | 23.20% |
Changes in Accumulated Other 40
Changes in Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward] | ||||
Accumulated other comprehensive income (loss), Beginning balance | $ (143,252) | $ (99,453) | ||
Other comprehensive (loss) income before reclassifications to consolidated statements of income | 1,560 | (38,100) | ||
Amounts reclassified from accumulated other comprehensive income to the consolidated statements of income | 5,700 | 8,423 | ||
Net current-period other comprehensive income (loss) | $ 2,882 | $ (19,304) | 7,260 | (29,677) |
Accumulated other comprehensive income (loss), Ending balance | (135,992) | (129,130) | (135,992) | (129,130) |
Gains and Losses on Cash Flow Hedges | ||||
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward] | ||||
Accumulated other comprehensive income (loss), Beginning balance | 115 | (732) | ||
Other comprehensive (loss) income before reclassifications to consolidated statements of income | (823) | (665) | ||
Amounts reclassified from accumulated other comprehensive income to the consolidated statements of income | 243 | 792 | ||
Net current-period other comprehensive income (loss) | (580) | 127 | ||
Accumulated other comprehensive income (loss), Ending balance | (465) | (605) | (465) | (605) |
Pension and Other Postretirement Benefit Items | ||||
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward] | ||||
Accumulated other comprehensive income (loss), Beginning balance | (105,703) | (115,289) | ||
Other comprehensive (loss) income before reclassifications to consolidated statements of income | 283 | 1,412 | ||
Amounts reclassified from accumulated other comprehensive income to the consolidated statements of income | 5,457 | 7,631 | ||
Net current-period other comprehensive income (loss) | 5,740 | 9,043 | ||
Accumulated other comprehensive income (loss), Ending balance | (99,963) | (106,246) | (99,963) | (106,246) |
Foreign Currency Items | ||||
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward] | ||||
Accumulated other comprehensive income (loss), Beginning balance | (37,664) | 16,568 | ||
Other comprehensive (loss) income before reclassifications to consolidated statements of income | 2,100 | (38,847) | ||
Amounts reclassified from accumulated other comprehensive income to the consolidated statements of income | 0 | 0 | ||
Net current-period other comprehensive income (loss) | 2,100 | (38,847) | ||
Accumulated other comprehensive income (loss), Ending balance | $ (35,564) | $ (22,279) | $ (35,564) | $ (22,279) |
Changes in Accumulated Other 41
Changes in Accumulated Other Comprehensive Income (Loss) by Component (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense | $ (3,020) | $ (2,637) | $ (8,826) | $ (7,944) |
Net sales | 311,561 | 291,434 | 906,586 | 906,949 |
Income before income taxes | 48,176 | 41,655 | 131,954 | 130,575 |
Tax benefit | (11,348) | (7,984) | (33,066) | (33,601) |
Total reclassifications in the period | 36,828 | 33,671 | 98,888 | 96,974 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications in the period | (1,915) | (2,776) | (5,700) | (8,423) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains and Losses on Cash Flow Hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income before income taxes | (157) | (351) | (397) | (1,141) |
Tax benefit | 55 | 110 | 154 | 349 |
Income from continuing operations | (102) | (241) | (243) | (792) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains and Losses on Cash Flow Hedges | Interest Rate Contract [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense | (137) | (214) | (437) | (642) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains and Losses on Cash Flow Hedges | Foreign Exchange Contract [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net sales | (20) | (137) | 40 | (499) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Pension and Other Postretirement Benefit Items | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income before income taxes | (2,790) | (3,918) | (8,387) | (11,781) |
Tax benefit | 977 | 1,383 | 2,930 | 4,150 |
Income from continuing operations | (1,813) | (2,535) | (5,457) | (7,631) |
Amortization of prior-service credits, net | 41 | 65 | 123 | 192 |
Amortization of actuarial losses | $ (2,831) | $ (3,983) | $ (8,510) | $ (11,973) |
Information on Business Segme42
Information on Business Segments (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)Segmentunit | Sep. 30, 2015USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | Segment | 2 | |||
Net sales | $ 311,561 | $ 291,434 | $ 906,586 | $ 906,949 |
Operating profit | 51,817 | 43,747 | 140,804 | 138,291 |
Interest expense | 3,020 | 2,637 | 8,826 | 7,944 |
Other expense (income), net | 621 | (545) | 24 | (228) |
Income before income taxes | 48,176 | 41,655 | 131,954 | 130,575 |
Aerospace [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 102,816 | 102,329 | 298,055 | 314,910 |
Operating profit | 16,859 | 16,443 | $ 41,359 | 50,029 |
Industrial [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Number of strategic business units | unit | 3 | |||
Net sales | 208,748 | 189,106 | $ 608,534 | 592,044 |
Operating profit | 34,958 | 27,304 | 99,445 | 88,262 |
Intersegment sales [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ (3) | $ (1) | $ (3) | $ (5) |
Information on Business Segme43
Information on Business Segments Details 1 (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Segment Reporting Information [Line Items] | ||
Assets | $ 2,221,883 | $ 2,061,866 |
Aerospace [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 637,232 | 654,147 |
Industrial [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,441,695 | 1,241,206 |
Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 142,956 | $ 166,513 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Dec. 31, 2015 | Sep. 30, 2015 | Sep. 30, 2016 | |
Loss Contingencies [Line Items] | |||
Assets | $ 2,061,866 | $ 2,221,883 | |
Contract Matters with Triumph [Member] | |||
Loss Contingencies [Line Items] | |||
Charge related to a contract termination dispute | $ 2,788 | ||
Assets | 8,000 | ||
Damages sought | $ 15,000 | 12,000 | |
Triumph Counterclaim [Member] | |||
Loss Contingencies [Line Items] | |||
Damages sought | $ 23,000 |
Accounting Changes (Details)
Accounting Changes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Mar. 31, 2016 | Mar. 31, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
New Accounting Pronouncement, Early Adoption [Line Items] | |||||||
Net cash provided by operating activities | $ 160,111 | $ 160,596 | |||||
Net cash used by financing activities | (19,033) | (46,611) | |||||
New Accounting Pronouncement, Early Adoption, Effect [Member] | |||||||
New Accounting Pronouncement, Early Adoption [Line Items] | |||||||
Excess tax benefits recognized in provision for income taxes | $ 1,530 | 1,530 | |||||
State tax loss carryforwards recognized | 195 | 195 | |||||
Net cash provided by operating activities | $ 413 | $ 1,402 | $ 524 | $ 2,320 | 7,519 | ||
Net cash used by financing activities | $ 413 | $ 1,402 | $ 524 | $ 2,320 | $ 7,519 | ||
Deferred tax assets, current | 26,072 | 26,072 | |||||
Deferred tax liabilities current | $ 1,173 | $ 1,173 |