Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 26, 2017 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
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 | 53,723,575 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | ||
Net sales | $ 341,802 | $ 288,332 |
Cost of sales | 219,833 | 186,255 |
Selling and administrative expenses | 66,221 | 60,550 |
Total operating costs and expenses | 286,054 | 246,805 |
Operating income | 55,748 | 41,527 |
Interest expense | 3,349 | 2,991 |
Other expense (income), net | 23 | 227 |
Income before income taxes | 52,376 | 38,309 |
Income taxes | 14,073 | 9,461 |
Net income | $ 38,303 | $ 28,848 |
Per common share: | ||
Basic (in dollars per share) | $ 0.71 | $ 0.53 |
Diluted (in dollars per share) | 0.70 | 0.53 |
Dividends (in dollars per share) | $ 0.13 | $ 0.12 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 54,179,130 | 54,245,728 |
Diluted (in shares) | 54,651,835 | 54,672,773 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 38,303 | $ 28,848 | |
Other comprehensive income, net of tax | |||
Unrealized gain (loss) on hedging activities, net of tax (1) | [1] | 83 | (148) |
Foreign currency translation adjustments, net of tax (2) | [2] | 18,609 | 20,713 |
Defined benefit pension and other postretirement benefits, net of tax (3) | [3] | 1,265 | 1,318 |
Total other comprehensive income, net of tax | 19,957 | 21,883 | |
Total comprehensive income | 58,260 | 50,731 | |
Unrealized (loss) income on hedging activities, tax | 38 | (62) | |
Foreign currency translation adjustment, tax | 67 | 156 | |
Defined benefit pension and other postretirement benefits, tax | $ 901 | $ 935 | |
[1] | Net of tax of $38 and $(62) for the three months ended March 31, 2017 and 2016, respectively. | ||
[2] | Net of tax of $67 and $156 for the three months ended March 31, 2017 and 2016, respectively. | ||
[3] | Net of tax of $901 and $935 for the three months ended March 31, 2017 and 2016, respectively. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 88,283 | $ 66,447 |
Accounts receivable, less allowances (2017 - $3,707; 2016 - $3,992) | 302,569 | 287,123 |
Inventories | 237,618 | 227,759 |
Prepaid expenses and other current assets | 27,595 | 27,163 |
Total current assets | 656,065 | 608,492 |
Deferred income taxes | 25,111 | 25,433 |
Property, plant and equipment | 779,319 | 762,187 |
Less accumulated depreciation | (441,202) | (427,698) |
Property, plant and equipment, net | 338,117 | 334,489 |
Goodwill | 644,958 | 633,436 |
Other intangible assets, net | 515,677 | 522,258 |
Other assets | 15,725 | 13,431 |
Total assets | 2,195,653 | 2,137,539 |
Current liabilities | ||
Notes and overdrafts payable | 5,908 | 30,825 |
Accounts payable | 122,860 | 112,024 |
Accrued liabilities | 158,256 | 156,967 |
Long-term debt - current | 1,920 | 2,067 |
Total current liabilities | 288,944 | 301,883 |
Long-term debt | 491,123 | 468,062 |
Accrued retirement benefits | 107,416 | 109,350 |
Deferred income taxes | 67,574 | 66,446 |
Other liabilities | 23,829 | 23,440 |
Commitments and contingencies (Note 12) | ||
Stockholders' equity | ||
Common stock - par value $0.01 per share Authorized: 150,000,000 shares Issued: at par value (2017 - 62,722,086 shares; 2016 - 62,692,403 shares) | 627 | 627 |
Additional paid-in capital | 445,959 | 443,235 |
Treasury stock, at cost (2017 - 8,999,149 shares; 2016 - 8,889,947 shares) | (257,316) | (251,827) |
Retained earnings | 1,208,368 | 1,177,151 |
Accumulated other non-owner changes to equity | (180,871) | (200,828) |
Total stockholders' equity | 1,216,767 | 1,168,358 |
Total liabilities and stockholders' equity | $ 2,195,653 | $ 2,137,539 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 3,707 | $ 3,992 |
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) | 62,722,086 | 62,692,403 |
Treasury stock, at cost (in shares) | 8,999,149 | 8,889,947 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Operating activities: | ||
Net income | $ 38,303 | $ 28,848 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 21,366 | 18,786 |
Gain on disposition of property, plant and equipment | (46) | (252) |
Stock compensation expense | 2,490 | 3,011 |
Changes in assets and liabilities: | ||
Accounts receivable | (15,252) | (4,213) |
Inventories | (7,329) | (153) |
Prepaid expenses and other current assets | 734 | (524) |
Accounts payable | 8,064 | (285) |
Accrued liabilities | 5,117 | 2,292 |
Deferred income taxes | (705) | 251 |
Long-term retirement benefits | (1,812) | (16,631) |
Other | 906 | (601) |
Net cash provided by operating activities | 51,836 | 30,529 |
Investing activities: | ||
Proceeds from disposition of property, plant and equipment | 170 | 313 |
Capital expenditures | (11,727) | (13,297) |
Business acquisitions | 0 | (1,546) |
Component Repair Program payments | 0 | (900) |
Net cash used by investing activities | (11,557) | (15,430) |
Financing activities: | ||
Net change in other borrowings | (24,947) | (14,179) |
Payments on long-term debt | (24,768) | (69,013) |
Proceeds from the issuance of long-term debt | 47,550 | 76,503 |
Proceeds from the issuance of common stock | 379 | 196 |
Common stock repurchases | (5,383) | (8,000) |
Dividends paid | (6,997) | (6,468) |
Withholding taxes paid on stock issuances | (106) | (369) |
Other | (5,828) | (2,921) |
Net cash used by financing activities | (20,100) | (24,251) |
Effect of exchange rate changes on cash flows | 1,657 | 2,085 |
Increase (decrease) in cash and cash equivalents | 21,836 | (7,067) |
Cash and cash equivalents at beginning of period | 66,447 | 83,926 |
Cash and cash equivalents at end of period | $ 88,283 | $ 76,859 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
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, 2016 has been derived from the 2016 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, 2016 . 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 three-month period ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 . Certain reclassifications have been made to prior year amounts. |
Net Income Per Common Share
Net Income Per Common Share | 3 Months Ended |
Mar. 31, 2017 | |
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 472,705 and 427,045 for the three-month periods ended March 31, 2017 and 2016 , 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 March 31, 2017 and 2016 , the Company excluded 177,781 and 462,243 stock awards, respectively, from the calculation of weighted-average diluted shares outstanding as the stock awards were considered anti-dilutive. The Company granted 125,300 stock options, 85,307 restricted stock unit awards and 83,970 performance share awards ("PSAs") in February 2017 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 2016 and 2017 include the Company’s total shareholder return (“TSR”) and return on invested capital (“ROIC”). The TSR metric is 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 | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The components of inventories consisted of: March 31, 2017 December 31, 2016 Finished goods $ 69,982 $ 71,100 Work-in-process 107,855 98,246 Raw material and supplies 59,781 58,413 $ 237,618 $ 227,759 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 : Industrial Aerospace Total Company January 1, 2017 $ 602,650 $ 30,786 $ 633,436 Acquisition related 1,809 — 1,809 Foreign currency translation 9,713 — 9,713 March 31, 2017 $ 614,172 $ 30,786 $ 644,958 Other Intangible Assets: Other intangible assets consisted of: March 31, 2017 December 31, 2016 Range of Life -Years Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Amortized intangible assets: Revenue sharing programs (RSPs) Up to 30 $ 293,700 $ (98,617 ) $ 293,700 $ (95,701 ) Component repair programs (CRPs) Up to 30 111,839 (12,018 ) 111,839 (10,497 ) Customer lists/relationships 10-16 215,266 (56,100 ) 215,266 (53,198 ) Patents and technology 4-14 84,052 (40,245 ) 84,052 (37,897 ) Trademarks/trade names 10-30 11,950 (10,075 ) 11,950 (9,967 ) Other Up to 15 20,551 (16,556 ) 20,551 (16,338 ) 737,358 (233,611 ) 737,358 (223,598 ) Unamortized intangible assets: Trade names 42,770 — 42,770 — Foreign currency translation (30,840 ) — (34,272 ) — Other intangible assets $ 749,288 $ (233,611 ) $ 745,856 $ (223,598 ) Estimated amortization of intangible assets for future periods is as follows: 2017 - $39,000 ; 2018 - $40,000 ; 2019 - $39,000 ; 2020 - $37,000 and 2021 - $35,000 . |
Debt
Debt | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 , and continues to monitor its future compliance based on current and anticipated future economic conditions. Long-term debt and notes and overdrafts payable at March 31, 2017 and December 31, 2016 consisted of: March 31, 2017 December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value Revolving credit agreement $ 386,625 $ 387,628 $ 363,300 $ 364,775 3.97% Senior Notes 100,000 102,960 100,000 101,598 Borrowings under lines of credit and overdrafts 5,908 5,908 30,825 30,825 Capital leases 5,138 5,614 5,413 5,902 Other foreign bank borrowings 1,280 1,292 1,416 1,428 498,951 503,402 500,954 504,528 Less current maturities (7,828 ) (32,892 ) Long-term debt $ 491,123 $ 468,062 In February 2017, the Company entered into the fourth amendment of 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 Amended Credit Agreement increases the facility from $750,000 to $850,000 and extends the maturity date from September 2018 to February 2022. The Amended Credit Agreement also increases the existing accordion feature from $250,000 , allowing the Company to now request additional borrowings of up to $350,000 . 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 not continuing. The borrowing availability of $850,000 , pursuant to the terms of the Amended Credit Agreement, allows for multi-currency borrowing which includes euro, sterling or Swiss franc borrowing, up to $600,000 . Depending on the Company’s consolidated leverage ratio, and at the election of the Company, borrowings under the Amended Credit Agreement will bear interest at either LIBOR plus a margin of between 1.10% and 1.70% or the base rate, as defined in the Amended Credit Agreement, plus a margin of 0.10% to 0.70% . The Company paid fees and expenses of $2,542 in conjunction with executing the Amended Credit Agreement; such fees will be deferred and amortized into interest expense on the accompanying Consolidated Statements of Income through its maturity. Cash used to pay these fees have been recorded through financing activities on the Consolidated Statements of Cash Flows. Borrowings and availability under the Amended Credit Agreement were $ 386,625 and $ 463,375 , respectively, at March 31, 2017 and $363,300 and $386,700 , respectively, at December 31, 2016. The average interest rate on these borrowings was 2.07% and 1.86% on March 31, 2017 and December 31, 2016, respectively. 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 3.97% Senior Notes are senior unsecured obligations of the Company and pay 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 remains limited by various debt covenants in the Amended Credit Agreement and the Note Purchase Agreement (the "Agreements"). 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 ("Senior Debt Ratio"), a ratio of Consolidated Total Debt, as defined, to Consolidated EBITDA of not more than 3.75 times and a ratio of Consolidated EBITDA to Consolidated Cash Interest Expense, as defined, of not less than 4.25 , in each case at the end of each fiscal quarter; provided that the debt to EBITDA ratios are permitted to increase for a period of four fiscal quarters after the closing of certain permitted acquisitions. In addition, the Company has available approximately $53,000 in uncommitted short-term bank credit lines ("Credit Lines") and overdraft facilities. Under the Credit Lines, $5,600 was borrowed at March 31, 2017 at an interest rate of 1.79% and $30,700 was borrowed at December 31, 2016 at an average interest rate of 1.96% . The Company had also borrowed $308 and $125 under the overdraft facilities at March 31, 2017 and December 31, 2016 , 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. 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 | 3 Months Ended |
Mar. 31, 2017 | |
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 (the "swaps") 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. The swaps expire on April 28, 2017. The Company entered into a new interest rate swap agreement (the "swap") that commences on April 28, 2017, with one bank, and converts 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 1.92% plus the borrowing spread. The swap covers a five -year period and expires on January 31, 2022. These interest rate swap agreements are 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 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 three months of 2017 and 2016, as presented on the consolidated statements of cash flows, include $3,243 and $2,874 , respectively, of net cash losses 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. March 31, 2017 December 31, 2016 Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Derivatives designated as hedging instruments: Interest rate contracts $ — $ (4 ) $ — $ (78 ) Foreign exchange contracts — (130 ) — (177 ) Derivatives not designated as hedging instruments: Foreign exchange contracts 1,195 (151 ) 397 (1,499 ) Total derivatives $ 1,195 $ (285 ) $ 397 $ (1,754 ) 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 gain (loss), net of tax, recorded in accumulated other comprehensive income (loss), net of tax, for the three-month periods ended March 31, 2017 and 2016 for derivatives held by the Company and designated as hedging instruments. Three months ended March 31, 2017 2016 Cash flow hedges: Interest rate contracts $ 47 $ (65 ) Foreign exchange contracts 36 (83 ) $ 83 $ (148 ) Amounts related to the interest rate swaps included within accumulated other comprehensive income (loss) that were reclassified to expense during the first three months of 2017 and 2016 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-month periods ended March 31, 2017 and 2016 . The following table sets forth the net (loss) gain recorded in other expense (income), net in the consolidated statements of income for the three-month periods ended March 31, 2017 and 2016 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 March 31, 2017 2016 Foreign exchange contracts $ (896 ) $ (3,712 ) |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2017 | |
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) March 31, 2017 Asset derivatives $ 1,195 $ — $ 1,195 $ — Liability derivatives (285 ) — (285 ) — Bank acceptances 9,999 — 9,999 — Rabbi trust assets 2,341 2,341 — — $ 13,250 $ 2,341 $ 10,909 $ — December 31, 2016 Asset derivatives $ 397 $ — $ 397 $ — Liability derivatives (1,754 ) — (1,754 ) — Bank acceptances 9,690 — 9,690 — Rabbi trust assets 2,216 2,216 — — $ 10,549 $ 2,216 $ 8,333 $ — 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 | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, Pensions 2017 2016 Service cost $ 1,643 $ 1,384 Interest cost 4,621 4,836 Expected return on plan assets (6,860 ) (7,543 ) Amortization of prior service cost 109 50 Amortization of actuarial losses 2,480 2,556 Settlement gain (261 ) — Net periodic benefit cost $ 1,732 $ 1,283 Three months ended March 31, Other Postretirement Benefits 2017 2016 Service cost $ 22 $ 34 Interest cost 389 453 Amortization of prior service credit (17 ) (93 ) Amortization of actuarial losses 69 176 Net periodic benefit cost $ 463 $ 570 The Company now expects to contribute approximately $20,000 to its various defined benefit pension plans in 2017, including approximately $15,000 of discretionary contributions to its U.S Qualified pension plans. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's effective tax rate for the first quarter of 2017 was 26.9% compared with 24.7% in the first quarter of 2016 and 25.7% for the full year 2016. The increase in the first quarter of 2017 effective tax rate from the full year 2016 rate is primarily due to the expiration of certain tax holidays and the decrease in the excess tax benefit on stock awards, partially offset by the increase in the projected change in the mix of earnings attributable to lower-taxing jurisdictions. 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 the fourth quarter of 2017. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) by Component | 3 Months Ended |
Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) 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 three month periods ended March 31, 2017 and 2016 : Gains and Losses on Cash Flow Hedges Pension and Other Postretirement Benefit Items Foreign Currency Items Total January 1, 2017 $ (227 ) $ (114,570 ) $ (86,031 ) $ (200,828 ) Other comprehensive income (loss) before reclassifications to consolidated statements of income 27 (214 ) 18,609 18,422 Amounts reclassified from accumulated other comprehensive income to the consolidated statements of income 56 1,479 — 1,535 Net current-period other comprehensive income 83 1,265 18,609 19,957 March 31, 2017 $ (144 ) $ (113,305 ) $ (67,422 ) $ (180,871 ) 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 (239 ) (436 ) 20,713 20,038 Amounts reclassified from accumulated other comprehensive income to the consolidated statements of income 91 1,754 — 1,845 Net current-period other comprehensive (loss) income (148 ) 1,318 20,713 21,883 March 31, 2016 $ (33 ) $ (104,385 ) $ (16,951 ) $ (121,369 ) The following table sets forth the reclassifications out of accumulated other comprehensive income (loss) by component for the three month periods ended March 31, 2017 and 2016 : 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 March 31, 2017 Three months ended March 31, 2016 Gains and losses on cash flow hedges Interest rate contracts $ (53 ) $ (151 ) Interest expense Foreign exchange contracts (30 ) 5 Net sales (83 ) (146 ) Total before tax 27 55 Tax benefit (56 ) (91 ) Net of tax Pension and other postretirement benefit items Amortization of prior-service (costs) credits, net $ (92 ) $ 43 (A) Amortization of actuarial losses (2,549 ) (2,732 ) (A) Settlement gain 261 — (A) (2,380 ) (2,689 ) Total before tax 901 935 Tax benefit (1,479 ) (1,754 ) Net of tax Total reclassifications in the period $ (1,535 ) $ (1,845 ) (A) These accumulated other comprehensive income (loss) components are included within the computation of net periodic pension cost. See Note 8. |
Information on Business Segment
Information on Business Segments | 3 Months Ended |
Mar. 31, 2017 | |
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'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 and manifold systems used to precisely control stamping presses in the tool and die industry. More recently, the Nitrogen Gas Products business has expanded its product offerings into adjacent markets, such as suspension systems for heavy duty and military 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. Aerospace Aftermarket includes the jet engine component maintenance overhaul and repair business ("MRO") and the spare parts business. MRO includes our Component Repair Programs ("CRPs"), which service many of the world's major turbine engine manufacturers, commercial airlines and the military. The spare parts business includes our 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 March 31, 2017 2016 Net sales Industrial $ 227,340 $ 195,246 Aerospace 114,470 93,087 Intersegment sales (8 ) (1 ) Total net sales $ 341,802 $ 288,332 Operating profit Industrial $ 33,456 $ 29,644 Aerospace 22,292 11,883 Total operating profit 55,748 41,527 Interest expense 3,349 2,991 Other expense (income), net 23 227 Income before income taxes $ 52,376 $ 38,309 March 31, 2017 December 31, 2016 Assets Industrial $ 1,400,794 $ 1,356,081 Aerospace 643,510 647,766 Other (A) 151,349 133,692 Total assets $ 2,195,653 $ 2,137,539 (A) "Other" assets include corporate-controlled assets, the majority of which are cash and deferred tax assets. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
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. The Company accrues its estimated exposure for warranty claims at the time of sale based upon the length of the warranty period, historical experience and any other related information known to the Company. Liabilities related to product warranties and extended warranties were not material as of March 31, 2017 and December 31, 2016 . |
Accounting Changes
Accounting Changes | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Changes | Accounting Changes In July 2015, the FASB amended its guidance related to the measurement of inventory. The amended guidance requires inventory to be measured at the lower of cost and net realizable value and thereby simplifies the current guidance of measuring inventory at the lower of cost or market. The amended guidance is effective prospectively for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The Company adopted the guidance during the first quarter of 2017 and it did not have a material impact on its Consolidated Financial Statements. 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 are no longer 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 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted, and the Company elected to early adopt in the third quarter of 2016. The adoption in the third quarter of 2016 required the Company to reflect any adjustments as of January 1, 2016, the beginning of the annual period that includes the interim period of adoption. We determined that 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, through the period of adoption. The adoption resulted in the recognition of excess tax benefits in our provision for income taxes of $44 related to the three-month period ended March 31, 2016 and $125 in the three-month period ended March 31, 2017. 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 $413 for the three month period ended March 31, 2016. |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On April 3, 2017, the Company completed its acquisition of the assets of privately held Gammaflux L.P. ("Gammaflux"), a leading supplier of hot runner temperature and sequential valve gate control systems to the plastics industry. The Company acquired the assets of Gammaflux for an aggregate purchase price of $8,500 , which is subject to certain adjustments under the terms of the Asset Purchase Agreement. Gammaflux is headquartered in Sterling, Virginia and has offices in Illinois and Germany. Gammaflux provides temperature control solutions for injection molding, extrusion, blow molding, thermoforming, and other applications. Its end markets include packaging, electronics, automotive, household products, medical, and tool building. Gammaflux will be integrated into the Molding Solutions business unit, which is included within the Industrial segment. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The components of inventories consisted of: March 31, 2017 December 31, 2016 Finished goods $ 69,982 $ 71,100 Work-in-process 107,855 98,246 Raw material and supplies 59,781 58,413 $ 237,618 $ 227,759 |
Goodwill and Other Intangible22
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 : Industrial Aerospace Total Company January 1, 2017 $ 602,650 $ 30,786 $ 633,436 Acquisition related 1,809 — 1,809 Foreign currency translation 9,713 — 9,713 March 31, 2017 $ 614,172 $ 30,786 $ 644,958 |
Schedule of Finite-Lived Intangible Assets by Major Class | Other intangible assets consisted of: March 31, 2017 December 31, 2016 Range of Life -Years Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Amortized intangible assets: Revenue sharing programs (RSPs) Up to 30 $ 293,700 $ (98,617 ) $ 293,700 $ (95,701 ) Component repair programs (CRPs) Up to 30 111,839 (12,018 ) 111,839 (10,497 ) Customer lists/relationships 10-16 215,266 (56,100 ) 215,266 (53,198 ) Patents and technology 4-14 84,052 (40,245 ) 84,052 (37,897 ) Trademarks/trade names 10-30 11,950 (10,075 ) 11,950 (9,967 ) Other Up to 15 20,551 (16,556 ) 20,551 (16,338 ) 737,358 (233,611 ) 737,358 (223,598 ) Unamortized intangible assets: Trade names 42,770 — 42,770 — Foreign currency translation (30,840 ) — (34,272 ) — Other intangible assets $ 749,288 $ (233,611 ) $ 745,856 $ (223,598 ) |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Long-term debt and notes and overdrafts payable at March 31, 2017 and December 31, 2016 consisted of: March 31, 2017 December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value Revolving credit agreement $ 386,625 $ 387,628 $ 363,300 $ 364,775 3.97% Senior Notes 100,000 102,960 100,000 101,598 Borrowings under lines of credit and overdrafts 5,908 5,908 30,825 30,825 Capital leases 5,138 5,614 5,413 5,902 Other foreign bank borrowings 1,280 1,292 1,416 1,428 498,951 503,402 500,954 504,528 Less current maturities (7,828 ) (32,892 ) Long-term debt $ 491,123 $ 468,062 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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-month periods ended March 31, 2017 and 2016 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 March 31, 2017 2016 Foreign exchange contracts $ (896 ) $ (3,712 ) |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following table sets forth the gain (loss), net of tax, recorded in accumulated other comprehensive income (loss), net of tax, for the three-month periods ended March 31, 2017 and 2016 for derivatives held by the Company and designated as hedging instruments. Three months ended March 31, 2017 2016 Cash flow hedges: Interest rate contracts $ 47 $ (65 ) Foreign exchange contracts 36 (83 ) $ 83 $ (148 ) |
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. March 31, 2017 December 31, 2016 Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Derivatives designated as hedging instruments: Interest rate contracts $ — $ (4 ) $ — $ (78 ) Foreign exchange contracts — (130 ) — (177 ) Derivatives not designated as hedging instruments: Foreign exchange contracts 1,195 (151 ) 397 (1,499 ) Total derivatives $ 1,195 $ (285 ) $ 397 $ (1,754 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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) March 31, 2017 Asset derivatives $ 1,195 $ — $ 1,195 $ — Liability derivatives (285 ) — (285 ) — Bank acceptances 9,999 — 9,999 — Rabbi trust assets 2,341 2,341 — — $ 13,250 $ 2,341 $ 10,909 $ — December 31, 2016 Asset derivatives $ 397 $ — $ 397 $ — Liability derivatives (1,754 ) — (1,754 ) — Bank acceptances 9,690 — 9,690 — Rabbi trust assets 2,216 2,216 — — $ 10,549 $ 2,216 $ 8,333 $ — |
Pension and Other Postretirem26
Pension and Other Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Net Benefit Costs | Pension and other postretirement benefits expenses consisted of the following: Three months ended March 31, Pensions 2017 2016 Service cost $ 1,643 $ 1,384 Interest cost 4,621 4,836 Expected return on plan assets (6,860 ) (7,543 ) Amortization of prior service cost 109 50 Amortization of actuarial losses 2,480 2,556 Settlement gain (261 ) — Net periodic benefit cost $ 1,732 $ 1,283 Three months ended March 31, Other Postretirement Benefits 2017 2016 Service cost $ 22 $ 34 Interest cost 389 453 Amortization of prior service credit (17 ) (93 ) Amortization of actuarial losses 69 176 Net periodic benefit cost $ 463 $ 570 |
Changes in Accumulated Other 27
Changes in Accumulated Other Comprehensive Income (Loss) by Component (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 three month periods ended March 31, 2017 and 2016 : Gains and Losses on Cash Flow Hedges Pension and Other Postretirement Benefit Items Foreign Currency Items Total January 1, 2017 $ (227 ) $ (114,570 ) $ (86,031 ) $ (200,828 ) Other comprehensive income (loss) before reclassifications to consolidated statements of income 27 (214 ) 18,609 18,422 Amounts reclassified from accumulated other comprehensive income to the consolidated statements of income 56 1,479 — 1,535 Net current-period other comprehensive income 83 1,265 18,609 19,957 March 31, 2017 $ (144 ) $ (113,305 ) $ (67,422 ) $ (180,871 ) 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 (239 ) (436 ) 20,713 20,038 Amounts reclassified from accumulated other comprehensive income to the consolidated statements of income 91 1,754 — 1,845 Net current-period other comprehensive (loss) income (148 ) 1,318 20,713 21,883 March 31, 2016 $ (33 ) $ (104,385 ) $ (16,951 ) $ (121,369 ) |
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 month periods ended March 31, 2017 and 2016 : 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 March 31, 2017 Three months ended March 31, 2016 Gains and losses on cash flow hedges Interest rate contracts $ (53 ) $ (151 ) Interest expense Foreign exchange contracts (30 ) 5 Net sales (83 ) (146 ) Total before tax 27 55 Tax benefit (56 ) (91 ) Net of tax Pension and other postretirement benefit items Amortization of prior-service (costs) credits, net $ (92 ) $ 43 (A) Amortization of actuarial losses (2,549 ) (2,732 ) (A) Settlement gain 261 — (A) (2,380 ) (2,689 ) Total before tax 901 935 Tax benefit (1,479 ) (1,754 ) Net of tax Total reclassifications in the period $ (1,535 ) $ (1,845 ) (A) These accumulated other comprehensive income (loss) components are included within the computation of net periodic pension cost. See Note 8. |
Information on Business Segme28
Information on Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 2016 Net sales Industrial $ 227,340 $ 195,246 Aerospace 114,470 93,087 Intersegment sales (8 ) (1 ) Total net sales $ 341,802 $ 288,332 Operating profit Industrial $ 33,456 $ 29,644 Aerospace 22,292 11,883 Total operating profit 55,748 41,527 Interest expense 3,349 2,991 Other expense (income), net 23 227 Income before income taxes $ 52,376 $ 38,309 March 31, 2017 December 31, 2016 Assets Industrial $ 1,400,794 $ 1,356,081 Aerospace 643,510 647,766 Other (A) 151,349 133,692 Total assets $ 2,195,653 $ 2,137,539 (A) "Other" assets include corporate-controlled assets, the majority of which are cash and deferred tax assets. |
Net Income Per Common Share (De
Net Income Per Common Share (Details) - shares | 1 Months Ended | 3 Months Ended | |
Feb. 28, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | |
Net Income Per Common Share [Line Items] | |||
Weighted average number of diluted shares outstanding adjustment (in shares) | 472,705 | 427,045 | |
Stock Options [Member] | |||
Net Income Per Common Share [Line Items] | |||
Antidilutive securities excluded from computation of EPS | 177,781 | 462,243 | |
Options, granted (in shares) | 125,300 | ||
Restricted Stock Units (RSUs) [Member] | |||
Net Income Per Common Share [Line Items] | |||
Other than options, granted (in shares) | 85,307 | ||
Performance Share Awards [Member] | |||
Net Income Per Common Share [Line Items] | |||
Other than options, granted (in shares) | 83,970 | ||
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 | Mar. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 69,982 | $ 71,100 |
Work-in-process | 107,855 | 98,246 |
Raw material and supplies | 59,781 | 58,413 |
Inventories | $ 237,618 | $ 227,759 |
Goodwill and Other Intangible31
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Goodwill: | ||
Goodwill, beginning of period | $ 633,436 | |
Acquisition related | 1,809 | |
Foreign currency translation | 9,713 | |
Goodwill, end of period | 644,958 | |
Other Intangible Assets: | ||
Gross Amount | 737,358 | $ 737,358 |
Accumulated Amortization | (233,611) | (223,598) |
Foreign currency translation | (30,840) | (34,272) |
Other intangible assets | 749,288 | 745,856 |
Intangible Assets, Future Amortization Expense | ||
Amortization of intangible assets expected in 2017 | 39,000 | |
Amortization of intangible assets expected in 2018 | 40,000 | |
Amortization of intangible assets expected in 2019 | 39,000 | |
Amortization of intangible assets expected in 2020 | 37,000 | |
Amortization of intangible assets expected in 2021 | 35,000 | |
Trade name [Member] | ||
Other Intangible Assets: | ||
Unamortized intangible asset | 42,770 | 42,770 |
Revenue sharing programs (RSPs) [Member] | ||
Other Intangible Assets: | ||
Gross Amount | 293,700 | 293,700 |
Accumulated Amortization | (98,617) | (95,701) |
Component repair programs (CRPs) [Member] | ||
Other Intangible Assets: | ||
Gross Amount | 111,839 | 111,839 |
Accumulated Amortization | (12,018) | (10,497) |
Customer lists/relationships [Member] | ||
Other Intangible Assets: | ||
Gross Amount | 215,266 | 215,266 |
Accumulated Amortization | (56,100) | (53,198) |
Patents and technology [Member] | ||
Other Intangible Assets: | ||
Gross Amount | 84,052 | 84,052 |
Accumulated Amortization | (40,245) | (37,897) |
Trademarks/trade names [Member] | ||
Other Intangible Assets: | ||
Gross Amount | 11,950 | 11,950 |
Accumulated Amortization | (10,075) | (9,967) |
Other [Member] | ||
Other Intangible Assets: | ||
Gross Amount | 20,551 | 20,551 |
Accumulated Amortization | (16,556) | $ (16,338) |
Industrial [Member] | ||
Goodwill: | ||
Goodwill, beginning of period | 602,650 | |
Acquisition related | 1,809 | |
Foreign currency translation | 9,713 | |
Goodwill, end of period | 614,172 | |
Aerospace [Member] | ||
Goodwill: | ||
Goodwill, beginning of period | 30,786 | |
Acquisition related | 0 | |
Foreign currency translation | 0 | |
Goodwill, end of period | $ 30,786 | |
Minimum [Member] | Customer lists/relationships [Member] | ||
Other Intangible Assets: | ||
Range of life | 10 years | |
Minimum [Member] | Patents and technology [Member] | ||
Other Intangible Assets: | ||
Range of life | 4 years | |
Minimum [Member] | Trademarks/trade names [Member] | ||
Other Intangible Assets: | ||
Range of life | 10 years | |
Maximum [Member] | Revenue sharing programs (RSPs) [Member] | ||
Other Intangible Assets: | ||
Range of life | 30 years | |
Maximum [Member] | Component repair programs (CRPs) [Member] | ||
Other Intangible Assets: | ||
Range of life | 30 years | |
Maximum [Member] | Customer lists/relationships [Member] | ||
Other Intangible Assets: | ||
Range of life | 16 years | |
Maximum [Member] | Patents and technology [Member] | ||
Other Intangible Assets: | ||
Range of life | 14 years | |
Maximum [Member] | Trademarks/trade names [Member] | ||
Other Intangible Assets: | ||
Range of life | 30 years | |
Maximum [Member] | Other [Member] | ||
Other Intangible Assets: | ||
Range of life | 15 years |
Debt (Debt Schedule) (Details)
Debt (Debt Schedule) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Fair value of debt | $ 503,402 | $ 504,528 |
Total debt, net of unamortized discounts | 498,951 | 500,954 |
Borrowings under lines of credit and overdrafts | 5,908 | 30,825 |
Less current maturities | (7,828) | (32,892) |
Long-term debt | 491,123 | 468,062 |
Revolving Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Carrying amount of debt | 386,625 | 363,300 |
Fair value of debt | 387,628 | 364,775 |
Senior Notes [Member] | 3.97% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Carrying amount of debt | 100,000 | 100,000 |
Fair value of debt | 102,960 | 101,598 |
Lines of Credit and Overdrafts [Member] | ||
Debt Instrument [Line Items] | ||
Fair value of debt | 5,908 | 30,825 |
Borrowings under lines of credit and overdrafts | 5,908 | 30,825 |
Capital Lease Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Carrying amount of debt | 5,138 | 5,413 |
Fair value of debt | 5,614 | 5,902 |
Foreign Bank Borrowings [Member] | ||
Debt Instrument [Line Items] | ||
Carrying amount of debt | 1,280 | 1,416 |
Fair value of debt | $ 1,292 | $ 1,428 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | 1 Months Ended | 3 Months Ended | ||
Feb. 28, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Oct. 31, 2014USD ($) | |
Debt Instrument [Line Items] | ||||
Borrowings under lines of credit and overdrafts | $ 5,908,000 | $ 30,825,000 | ||
Debt covenant ratio of senior debt to EBITDA | 3.25 | |||
Debt covenant ratio of total debt to EBITDA | 3.75 | |||
Debt covenant ratio of EBITDA to cash interest expense | 4.25 | |||
Revolving Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Carrying amount of debt | $ 386,625,000 | 363,300,000 | ||
Line of credit facility, maximum borrowing capacity | 750,000,000 | |||
Line of credit facility with accordian feature, maximum borrowing capacity | 250,000,000 | |||
Remaining borrowing capacity | $ 463,375,000 | $ 386,700,000 | ||
Revolving Credit Agreement [Member] | Euro Member Countries, Euro | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 2.07% | 1.86% | ||
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% | |||
Lines of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Borrowings under lines of credit and overdrafts | 5,600,000 | $ 30,700,000 | ||
Line of credit facility, maximum borrowing capacity | $ 53,000,000 | |||
Line of credit, interest rate at period end | 1.79% | 1.96% | ||
Bank Overdrafts [Member] | ||||
Debt Instrument [Line Items] | ||||
Borrowings under lines of credit and overdrafts | $ 308,000 | $ 125,000 | ||
Repayment period | 2 days | |||
Revolving Credit Agreement [Member] | Fourth Amendment, Maturity February 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 850,000,000 | |||
Debt fees and expenses | 2,542,000 | |||
Revolving Credit Agreement [Member] | Fourth Amendment, Maturity February 2022 [Member] | United Kingdom, Pounds | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | 600,000,000 | |||
Revolving Credit Agreement [Member] | Fourth Amendment, Maturity February 2022 [Member] | Euro Member Countries, Euro | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | 600,000,000 | |||
Revolving Credit Agreement [Member] | Fourth Amendment, Maturity February 2022 [Member] | Switzerland, Francs | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 600,000,000 | |||
Revolving Credit Agreement [Member] | Fourth Amendment, Maturity February 2022 [Member] | one-month LIBOR [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Variable basis spread | 1.10% | |||
Revolving Credit Agreement [Member] | Fourth Amendment, Maturity February 2022 [Member] | one-month LIBOR [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Variable basis spread | 1.70% | |||
Revolving Credit Agreement [Member] | Fourth Amendment, Maturity February 2022 [Member] | Base Rate [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Variable basis spread | 0.10% | |||
Revolving Credit Agreement [Member] | Fourth Amendment, Maturity February 2022 [Member] | Base Rate [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Variable basis spread | 0.70% | |||
Revolving Credit Agreement [Member] | Fourth Amendment, Maturity February 2022, Accordion Feature [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 350,000,000 |
Derivatives (Details)
Derivatives (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | ||
Derivative Assets | $ 1,195 | $ 397 |
Derivative Liabilities | (285) | (1,754) |
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 | (4) | (78) |
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | ||
Derivative Assets | 0 | 0 |
Derivative Liabilities | (130) | (177) |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | ||
Derivative Assets | 1,195 | 397 |
Derivative Liabilities | $ (151) | $ (1,499) |
Derivatives (Details 1)
Derivatives (Details 1) $ in Thousands | Apr. 28, 2017USD ($)Bank | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2012USD ($)Bank |
Derivative [Line Items] | ||||
Maximum remaining maturity of foreign currency derivatives | 2 years | |||
Derivative, Net Hedge Ineffectiveness Gain (Loss) | $ 0 | $ 0 | ||
Net cash losses from settlement | (5,828) | (2,921) | ||
Foreign Exchange Contract [Member] | ||||
Derivative [Line Items] | ||||
Net cash losses from settlement | 3,243 | 2,874 | ||
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 | 83 | (148) | ||
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 | 47 | (65) | ||
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 | 36 | (83) | ||
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ||||
Derivative [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ (896) | $ (3,712) | ||
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 | |||
Fixed interest rate | 1.03% | |||
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | one-month LIBOR [Member] | ||||
Derivative [Line Items] | ||||
Derivative amount of hedge | $ 100,000 | |||
Subsequent Event [Member] | 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 | 1 | |||
Fixed interest rate | 1.92% | |||
Subsequent Event [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | one-month LIBOR [Member] | ||||
Derivative [Line Items] | ||||
Derivative amount of hedge | $ 100,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Asset derivatives | $ 1,195 | $ 397 |
Liability derivatives | (285) | (1,754) |
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 | 2,341 | 2,216 |
Financial assets and financial liabilities, reported at fair value | 2,341 | 2,216 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Asset derivatives | 1,195 | 397 |
Liability derivatives | (285) | (1,754) |
Bank acceptances | 9,999 | 9,690 |
Rabbi trust assets | 0 | 0 |
Financial assets and financial liabilities, reported at fair value | 10,909 | 8,333 |
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 | 1,195 | 397 |
Liability derivatives | (285) | (1,754) |
Bank acceptances | 9,999 | 9,690 |
Rabbi trust assets | 2,341 | 2,216 |
Financial assets and financial liabilities, reported at fair value | $ 13,250 | $ 10,549 |
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 Postretirem37
Pension and Other Postretirement Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Pensions [Member] | ||
Pension and other postretirement benefits expenses | ||
Service cost | $ 1,643 | $ 1,384 |
Interest cost | 4,621 | 4,836 |
Expected return on plan assets | (6,860) | (7,543) |
Amortization of prior service cost (credit) | 109 | 50 |
Amortization of actuarial losses | 2,480 | 2,556 |
Settlement gain | (261) | 0 |
Net periodic benefit cost | 1,732 | 1,283 |
Expected company contributions in 2017 | 20,000 | |
Other Postretirement Benefits [Member] | ||
Pension and other postretirement benefits expenses | ||
Service cost | 22 | 34 |
Interest cost | 389 | 453 |
Amortization of prior service cost (credit) | (17) | (93) |
Amortization of actuarial losses | 69 | 176 |
Net periodic benefit cost | 463 | $ 570 |
U.S. Qualified Pension Plan [Member] | ||
Pension and other postretirement benefits expenses | ||
Expected company contributions in 2017 | $ 15,000 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Effective tax rate | 26.90% | 24.70% | 25.70% |
Changes in Accumulated Other 39
Changes in Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward] | ||
Accumulated other comprehensive income (loss) | $ (200,828) | $ (143,252) |
Other comprehensive income (loss) before reclassifications to consolidated statements of income | 18,422 | 20,038 |
Amounts reclassified from accumulated other comprehensive income to the consolidated statements of income | 1,535 | 1,845 |
Net current-period other comprehensive (loss) income | 19,957 | 21,883 |
Accumulated other comprehensive income (loss) | (180,871) | (121,369) |
Gains and Losses on Cash Flow Hedges | ||
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward] | ||
Accumulated other comprehensive income (loss) | (227) | 115 |
Other comprehensive income (loss) before reclassifications to consolidated statements of income | 27 | (239) |
Amounts reclassified from accumulated other comprehensive income to the consolidated statements of income | 56 | 91 |
Net current-period other comprehensive (loss) income | 83 | (148) |
Accumulated other comprehensive income (loss) | (144) | (33) |
Pension and Other Postretirement Benefit Items | ||
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward] | ||
Accumulated other comprehensive income (loss) | (114,570) | (105,703) |
Other comprehensive income (loss) before reclassifications to consolidated statements of income | (214) | (436) |
Amounts reclassified from accumulated other comprehensive income to the consolidated statements of income | 1,479 | 1,754 |
Net current-period other comprehensive (loss) income | 1,265 | 1,318 |
Accumulated other comprehensive income (loss) | (113,305) | (104,385) |
Foreign Currency Items | ||
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward] | ||
Accumulated other comprehensive income (loss) | (86,031) | (37,664) |
Other comprehensive income (loss) before reclassifications to consolidated statements of income | 18,609 | 20,713 |
Amounts reclassified from accumulated other comprehensive income to the consolidated statements of income | 0 | 0 |
Net current-period other comprehensive (loss) income | 18,609 | 20,713 |
Accumulated other comprehensive income (loss) | $ (67,422) | $ (16,951) |
Changes in Accumulated Other 40
Changes in Accumulated Other Comprehensive Income (Loss) by Component (Details 2) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest expense | $ (3,349) | $ (2,991) |
Net sales | 341,802 | 288,332 |
Income before income taxes | 52,376 | 38,309 |
Tax benefit | (14,073) | (9,461) |
Total reclassifications in the period | 38,303 | 28,848 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total reclassifications in the period | (1,535) | (1,845) |
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 | (83) | (146) |
Tax benefit | 27 | 55 |
Income from continuing operations | (56) | (91) |
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 | (53) | (151) |
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 | (30) | 5 |
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 | (2,380) | (2,689) |
Tax benefit | 901 | 935 |
Income from continuing operations | (1,479) | (1,754) |
Amortization of prior-service credits, net | (92) | 43 |
Amortization of actuarial losses | (2,549) | (2,732) |
Settlement gain | $ 261 | $ 0 |
Information on Business Segme41
Information on Business Segments (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017USD ($)Segment | Mar. 31, 2016USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | Segment | 2 | |
Net sales | $ 341,802 | $ 288,332 |
Operating profit | 55,748 | 41,527 |
Interest expense | 3,349 | 2,991 |
Other expense (income), net | 23 | 227 |
Income before income taxes | 52,376 | 38,309 |
Aerospace [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 114,470 | 93,087 |
Operating profit | 22,292 | 11,883 |
Industrial [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 227,340 | 195,246 |
Operating profit | 33,456 | 29,644 |
Intersegment sales [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ (8) | $ (1) |
Information on Business Segme42
Information on Business Segments Details 1 (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Segment Reporting Information [Line Items] | ||
Assets | $ 2,195,653 | $ 2,137,539 |
Aerospace [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 643,510 | 647,766 |
Industrial [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,400,794 | 1,356,081 |
Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 151,349 | $ 133,692 |
Accounting Changes (Details)
Accounting Changes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Recognition of excess tax benefits | $ 0 | $ 0 |
Increase in net cash provided by operating activities | 51,836 | 30,529 |
Increase to net cash provided by financing activities | (20,100) | (24,251) |
Accounting Standards Update 2016-09 [Member] | New Accounting Pronouncement, Early Adoption, Effect [Member] | ||
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Increase in net cash provided by operating activities | $ 413 | |
Increase to net cash provided by financing activities | $ 413 |
Subsequent Event (Details)
Subsequent Event (Details) $ in Thousands | Apr. 03, 2017USD ($) |
Subsequent Event [Member] | Gammaflux L.P. [Member] | |
Subsequent Event [Line Items] | |
Purchase price | $ 8,500 |