10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C.  20549

FORM 10-Q

ý Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2017

or

o Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from _________ to _______

Commission File Number 1-134

CURTISS-WRIGHT CORPORATION

(Exact name of Registrant as specified in its charter)

Delaware	13-0612970
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

13925 Ballantyne Corporate Place,
Suite 400, Charlotte, North Carolina	28277
(Address of principal executive offices)	(Zip Code)

(704) 869-4600

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period of time that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes  ý                        No  o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes  ý                        No  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ý		Accelerated filer o
Non-accelerated filer o	(Do not check if a smaller reporting company)	Smaller reporting company o
		Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes  o   No  ý

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Common Stock, par value $1.00 per share: 44,137,906 shares (as of June 30, 2017).

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

TABLE of CONTENTS

PART I – FINANCIAL INFORMATION			PAGE
Item 1.	Financial Statements (Unaudited):
		Condensed Consolidated Statements of Earnings	4
		Condensed Consolidated Statements of Comprehensive Income	5
		Condensed Consolidated Balance Sheets	6
		Condensed Consolidated Statements of Cash Flows	7
		Condensed Consolidated Statements of Stockholders’ Equity	8
		Notes to Condensed Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		20
Item 3.	Quantitative and Qualitative Disclosures about Market Risk		30
Item 4.	Controls and Procedures		30
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings		31
Item 1A.	Risk Factors		31
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		31
Item 3.	Defaults upon Senior Securities		32
Item 4.	Mine Safety Disclosures		32
Item 5.	Other Information		33
Item 6.	Exhibits		34
Signatures			35

Page 3

PART 1- FINANCIAL INFORMATION

Item 1. Financial Statements

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(UNAUDITED)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In thousands, except per share data)	2017			2016			2017			2016
Net sales
Product sales	$	459,774		$	427,324		$	883,003		$	830,242
Service sales	107,879			105,442			208,241			206,031
Total net sales	567,653			532,766			1,091,244			1,036,273
Cost of sales
Cost of product sales	299,739			279,869			586,231			544,604
Cost of service sales	69,144			67,518			135,468			134,387
Total cost of sales	368,883			347,387			721,699			678,991
Gross profit	198,770			185,379			369,545			357,282
Research and development expenses	15,501			15,236			30,799			30,396
Selling expenses	28,560			29,126			57,513			58,752
General and administrative expenses	71,438			72,928			146,735			142,782
Operating income	83,271			68,089			134,498			125,352
Interest expense	10,750			10,273			21,127			20,206
Other income, net	190			101			502			335
Earnings before income taxes	72,711			57,917			113,873			105,481
Provision for income taxes	(22,061		)	(17,954		)	(30,676		)	(32,699		)
Net earnings	$	50,650		$	39,963		$	83,197		$	72,782
Net earnings per share:
Basic earnings per share	$	1.15		$	0.90		$	1.88		$	1.63
Diluted earnings per share	$	1.13		$	0.88		$	1.86		$	1.61
Dividends per share	0.13			0.13			0.26			0.26
Weighted-average shares outstanding:
Basic	44,213			44,487			44,221			44,526
Diluted	44,807			45,164			44,825			45,195
See notes to condensed consolidated financial statements

Page 4

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)

(In thousands)

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2017		2016			2017		2016
Net earnings	$	50,650	$	39,963		$	83,197	$	72,782
Other comprehensive income (loss)
Foreign currency translation, net of tax (1)	$	32,677	$	(31,646	)	$	43,901	$	(14,541	)
Pension and postretirement adjustments, net of tax (2)	1,743		1,520			3,694		3,132
Other comprehensive income (loss), net of tax	34,420		(30,126		)	47,595		(11,409		)
Comprehensive income	$	85,070	$	9,837		$	130,792	$	61,373

(1) The tax expense included in other comprehensive income for foreign currency translation adjustments for the three and six months ended June 30, 2017 were $1.1 million and $1.2 million, respectively. The tax benefit included in other comprehensive loss for foreign currency translation adjustments for the three and six months ended June 30, 2016 were $1.3 million and $0.3 million, respectively.

(2) The tax expense included in other comprehensive income for pension and postretirement adjustments for the three and six months ended June 30, 2017 were $1.2 million and $2.5 million, respectively. The tax expense included in other comprehensive income for pension and postretirement adjustments for the three and six months ended June 30, 2016 were $1.1 million and $2.1 million, respectively.

See notes to condensed consolidated financial statements

Page 5

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(In thousands, except per share data)

	June 30, 2017			December 31, 2016
Assets
Current assets:
Cash and cash equivalents	$	342,711		$	553,848
Receivables, net	502,216			463,062
Inventories, net	396,245			366,974
Other current assets	45,932			30,927
Total current assets	1,287,104			1,414,811
Property, plant, and equipment, net	390,520			388,903
Goodwill	1,082,944			951,057
Other intangible assets, net	345,991			271,461
Other assets	14,715			11,549
Total assets	$	3,121,274		$	3,037,781
Liabilities
Current liabilities:
Current portion of long-term and short-term debt	$	150,820		$	150,668
Accounts payable	157,088			177,911
Accrued expenses	116,492			130,239
Income taxes payable	10,578			18,274
Deferred revenue	183,955			170,143
Other current liabilities	34,858			28,027
Total current liabilities	653,791			675,262
Long-term debt	814,810			815,630
Deferred tax liabilities, net	55,675			49,722
Accrued pension and other postretirement benefit costs	103,181			107,151
Long-term portion of environmental reserves	16,091			14,024
Other liabilities	84,561			84,801
Total liabilities	1,728,109			1,746,590
Contingencies and commitments (Note 12)
Stockholders’ equity
Common stock, $1 par value,100,000,000 shares authorized at June 30, 2017 and December 31, 2016; 49,187,378 shares issued at June 30, 2017 and December 31, 2016; outstanding shares were 44,137,906 at June 30, 2017 and 44,181,050 at December 31, 2016	49,187			49,187
Additional paid in capital	122,584			129,483
Retained earnings	1,825,697			1,754,907
Accumulated other comprehensive loss	(244,161		)	(291,756		)
Common treasury stock, at cost (5,049,472 shares at June 30, 2017 and 5,006,328 shares at December 31, 2016)	(360,142		)	(350,630		)
Total stockholders’ equity	1,393,165			1,291,191
Total liabilities and stockholders’ equity	$	3,121,274		$	3,037,781
See notes to condensed consolidated financial statements

Page 6

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Six Months Ended
	June 30,
(In thousands)	2017			2016
Cash flows from operating activities:
Net earnings	$	83,197		$	72,782
Adjustments to reconcile net earnings to net cash provided by operating activities
Depreciation and amortization	49,961			48,987
Gain on fixed asset disposals	(197		)	(28		)
Deferred income taxes	(1,750		)	14,127
Share-based compensation	6,016			4,985
Change in operating assets and liabilities, net of businesses acquired and divested:
Receivables, net	(27,246		)	85,281
Inventories, net	534			(14,527		)
Progress payments	(1,316		)	(345		)
Accounts payable and accrued expenses	(48,229		)	(65,856		)
Deferred revenue	11,171			9,153
Income taxes payable	(13,217		)	(25,412		)
Net pension and postretirement liabilities	1,041			412
Termination of interest rate swap	—			20,405
Other current and long-term assets and liabilities	967			6,667
Net cash provided by operating activities	60,932			156,631
Cash flows from investing activities:
Proceeds from sales and disposals of long lived assets	349			244
Additions to property, plant, and equipment	(23,288		)	(15,733		)
Acquisition of businesses, net of cash acquired	(232,630		)	(295		)
Net cash used for investing activities	(255,569		)	(15,784		)
Cash flows from financing activities:
Borrowings under revolving credit facility	2,736			3,755
Payment of revolving credit facility	(2,584		)	(3,901		)
Repurchases of common stock	(26,454		)	(54,958		)
Proceeds from share-based compensation	5,374			13,098
Dividends paid	(5,757		)	(5,797		)
Excess tax benefits from share-based compensation plans	—			6,220
Other	(336		)	(308		)
Net cash used for financing activities	(27,021		)	(41,891		)
Effect of exchange-rate changes on cash	10,521			(4,502		)
Net increase (decrease) in cash and cash equivalents	(211,137		)	94,454
Cash and cash equivalents at beginning of period	553,848			288,697
Cash and cash equivalents at end of period	$	342,711		$	383,151
Supplemental disclosure of non-cash activities:
Capital expenditures incurred but not yet paid	$	1,641		$	775
See notes to condensed consolidated financial statements

Page 7

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(UNAUDITED)

(In thousands)

	Common Stock			Additional Paid in Capital			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock
December 31, 2015	$	49,190		$	144,923		$	1,590,645		$	(225,928	)	$	(303,407	)
Net earnings	—			—			187,329			—			—
Other comprehensive loss, net of tax	—			—			—			(65,828		)	—
Dividends paid	—			—			(23,067		)	—			—
Restricted stock, net of tax	—			(12,086		)	—			—			17,275
Stock options exercised, net of tax	—			(11,271		)	—			—			39,483
Other	(3		)	(1,104		)	—			—			811
Share-based compensation	—			9,021			—			—			457
Repurchase of common stock	—			—			—			—			(105,249		)
December 31, 2016	$	49,187		$	129,483		$	1,754,907		$	(291,756	)	$	(350,630	)
Net earnings	—			—			83,197			—			—
Other comprehensive income, net of tax	—			—			—			47,595			—
Dividends declared	—			—			(11,498		)	—			—
Restricted stock	—			(9,618		)	—			—			9,618
Stock options exercised	—			(851		)	—			—			6,227
Other	—			(2,099		)	(909		)	—			750
Share-based compensation	—			5,669			—			—			347
Repurchase of common stock	—			—			—			—			(26,454		)
June 30, 2017	$	49,187		$	122,584		$	1,825,697		$	(244,161	)	$	(360,142	)
See notes to condensed consolidated financial statements

Page 8

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

NOTES to CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

1.           BASIS OF PRESENTATION

Curtiss-Wright Corporation and its subsidiaries (the "Corporation" or the "Company") is a diversified multinational manufacturing and service company that designs, manufactures, and overhauls precision components and provides highly engineered products and services to the aerospace, defense, power generation, and general industrial markets.

The unaudited condensed consolidated financial statements include the accounts of Curtiss-Wright and its majority-owned subsidiaries. All intercompany transactions and accounts have been eliminated.

The unaudited condensed consolidated financial statements of the Corporation have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in annual financial statements have been condensed or omitted as permitted by such rules and regulations. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments necessary for a fair presentation of these financial statements.

Management is required to make estimates and judgments that affect the reported amount of assets, liabilities, revenue, and expenses and disclosure of contingent assets and liabilities in the accompanying financial statements. Actual results may differ from these estimates. The most significant of these estimates includes the estimate of costs to complete long-term contracts under the percentage-of-completion accounting methods, the estimate of useful lives for property, plant, and equipment, cash flow estimates used for testing the recoverability of assets, pension plan and postretirement obligation assumptions, estimates for inventory obsolescence, estimates for the valuation and useful lives of intangible assets, legal reserves, and the estimate of future environmental costs. Changes in estimates of contract sales, costs, and profits are recognized using the cumulative catch-up method of accounting. This method recognizes in the current period the cumulative effect of the changes on current and prior periods. Accordingly, the effect of the changes on future periods of contract performance is recognized as if the revised estimate had been the original estimate. During the three and six months ended June 30, 2017 and 2016, there were no individual significant changes in estimated contract costs. In the opinion of management, all adjustments considered necessary for a fair presentation have been reflected in these financial statements.

The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Corporation’s 2016 Annual Report on Form 10-K. The results of operations for interim periods are not necessarily indicative of trends or of the operating results for a full year.

Recent accounting pronouncements adopted

Page 9

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

NOTES to CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Standard	Description	Effect on the condensed consolidated financial statements
ASU 2017-04 Simplifying the Test for Goodwill Impairment	In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which simplifies the measurement of goodwill impairment testing by removing step two. This guidance was early adopted effective January 1, 2017 and will be applied prospectively.	The adoption of this standard does not have a financial impact on the Condensed Consolidated Financial Statements.
Date of adoption: January 1, 2017
ASU 2016-09 Improvements to Employee Share-Based Payment Accounting	In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes and forfeitures. Excess tax benefits previously reported as cash flows from financing activities in the Condensed Consolidated Financial Statements are now required to be reported as operating activities. The Company adopted this guidance effective January 1, 2017.	The Corporation recorded an income tax benefit of approximately $4 million within the provision for income taxes for the six months ended June 30, 2017 related to the excess tax benefit on stock options and performance share units. Prior to adoption, this amount would have been recorded as an increase to additional paid-in capital. The Corporation elected to account for forfeitures as they occur, which did not have a material impact on its Condensed Consolidated Financial Statements.
Date of adoption: January 1, 2017

Page 10

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

NOTES to CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Recent accounting pronouncements to be adopted

Standard	Description	Effect on the condensed consolidated financial statements
ASU 2014-09 Revenue from Contracts with Customers	In May 2014, the FASB issued a comprehensive new revenue recognition standard which will supersede previous existing revenue recognition guidance. The standard creates a five-step model for revenue recognition that requires companies to exercise judgment when considering contract terms and relevant facts and circumstances. The five-step model includes (1) identifying the contract, (2) identifying the separate performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations and (5) recognizing revenue when each performance obligation has been satisfied. The standard also requires expanded disclosures surrounding revenue recognition. The standard is effective for fiscal periods beginning after December 15, 2017 and allows for either full retrospective or modified retrospective adoption.	The Corporation plans to apply the modified retrospective approach upon adoption and is currently evaluating the impact of adoption on its Condensed Consolidated Financial Statements as of January 1, 2018. We have performed a preliminary review of our customer contracts; however, our assessment is still ongoing and not yet complete. It is expected that the disclosures in our Notes to the Condensed Consolidated Financial Statements related to revenue recognition will be expanded under the new standard. The Corporation will continue to monitor interpretative guidance issued by the FASB which may cause our evaluation to change.
Date of adoption: January 1, 2018
ASU 2016-02 Leases	In February 2016, the FASB issued final guidance that will require lessees to put most leases on their balance sheets but recognize expenses on their income statements in a manner similar to today’s accounting. The guidance requires the use of a modified retrospective approach.	The Corporation is currently evaluating the impact of the adoption of this standard on its Condensed Consolidated Financial Statements.
Date of adoption: January 1, 2019
ASU 2017-01 Clarifying the Definition of a Business	In January 2017, the FASB issued ASU 2017-01, which clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The standard introduces a screen for determining when assets acquired are not a business and clarifies that a business must include, at a minimum, an input and a substantive process that contribute to an output. The standard is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years.	The Corporation is currently evaluating the impact of the adoption of this standard on its Condensed Consolidated Financial Statements.
Date of adoption: January 1, 2018
ASU 2017-07 Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost	In March 2017, the FASB issued final guidance that will change how the net periodic benefit cost for defined benefit pension and other postretirement benefit plans are presented in the income statement and the respective capitalization of assets on the balance sheet. The guidance requires the use of a retrospective approach for the presentation of the income statement and a prospective approach for the presentation of the balance sheet.	The Corporation is currently evaluating the impact of the adoption of this standard on its Condensed Consolidated Financial Statements.
Date of adoption: January 1, 2018

2.           ACQUISITIONS

The Corporation continually evaluates potential acquisitions that either strategically fit within the Corporation’s existing portfolio or expand the Corporation’s portfolio into new product lines or adjacent markets.  The Corporation has completed a number of acquisitions that have been accounted for as business combinations and have resulted in the recognition of goodwill in the Corporation's financial statements.  This goodwill arises because the purchase prices for these businesses reflect the future earnings and cash flow potential in excess of the earnings and cash flows attributable to the current product and customer set at the time of acquisition.  Thus, goodwill inherently includes the know-how of the assembled workforce, the ability of the workforce to further improve the technology and product offerings, and the expected cash flows resulting from these efforts. Goodwill may also include expected synergies resulting from the complementary strategic fit these businesses bring to existing operations.

The Corporation allocates the purchase price at the date of acquisition based upon its understanding of the fair value of the acquired assets and assumed liabilities. In the months after closing, as the Corporation obtains additional information about these assets and liabilities, including through tangible and intangible asset appraisals, and as the Corporation learns more about the newly acquired business, it is able to refine the estimates of fair value and more accurately allocate the purchase price.

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CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

NOTES to CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Only items identified as of the acquisition date are considered for subsequent adjustment.  The Corporation will make appropriate adjustments to the purchase price allocation prior to completion of the measurement period, as required.

During the six months ended June 30, 2017, the Corporation acquired two businesses for an aggregate purchase price of $233 million, which are described in more detail below. No acquisitions were made during the six months ended June 30, 2016.

The Condensed Consolidated Statement of Earnings includes $25 million of total net sales and $4 million of net losses from the Corporation's 2017 acquisitions.

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition for all acquisitions consummated during the six months ended June 30, 2017.

(In thousands)	2017			2016
Accounts receivable	$	5,020		$	—
Inventory	22,702			—
Property, plant, and equipment	4,598			—
Other current and non-current assets	2,815			—
Intangible assets	88,900			—
Current and non-current liabilities	(7,163		)	—
Due to seller, net	(509		)	—
Net tangible and intangible assets	116,363			—
Purchase price, net of cash acquired	232,630			—
Goodwill	$	116,267		$	—
Goodwill deductible for tax purposes	$	116,267		$	—

2017 Acquisitions

Teletronics Technology Corporation (TTC)

On January 3, 2017, the Corporation acquired 100% of the issued and outstanding capital stock of TTC for $226.0 million, net of cash acquired. The Share Purchase Agreement contains a purchase price adjustment mechanism and representations and warranties customary for a transaction of this type, including a portion of the purchase price deposited in escrow as security for potential indemnification claims against the seller. TTC is a designer and manufacturer of high-technology data acquisition and comprehensive flight test instrumentation systems for critical aerospace and defense applications. For the year ended December 31, 2016, TTC generated sales of $64 million.The acquired business operates within the Defense segment. The acquisition is subject to post-closing adjustments as the purchase price allocation is not yet complete.

Para Tech Coating, Inc. (Para Tech)

On February 8, 2017, the Corporation acquired certain assets and assumed certain liabilities of Para Tech for $6.6 million in cash. The Asset Purchase Agreement contains a purchase price adjustment mechanism and representations and warranties customary for a transaction of this type, including a portion of the purchase price held back as security for potential indemnification claims against the seller. Para Tech is a provider of parylene conformal coating services for aerospace & defense electronic components as well as critical medical devices. The acquired business operates within the Commercial/Industrial segment. The acquisition is subject to post-closing adjustments as the purchase price allocation is not yet complete.

3.           RECEIVABLES

Receivables primarily include amounts billed to customers, unbilled charges on long-term contracts consisting of amounts recognized as sales but not billed, and other receivables.  Substantially all amounts of unbilled receivables are expected to be billed and collected within one year. An immaterial amount of unbilled receivables are subject to retainage provisions. The amount of claims and unapproved change orders within our receivables balances are immaterial.

The composition of receivables is as follows:

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CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

NOTES to CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(In thousands)	June 30, 2017			December 31, 2016
Billed receivables:
Trade and other receivables	$	374,691		$	340,091
Less: Allowance for doubtful accounts	(7,219		)	(4,832		)
Net billed receivables	367,472			335,259
Unbilled receivables:
Recoverable costs and estimated earnings not billed	158,006			149,847
Less: Progress payments applied	(23,262		)	(22,044		)
Net unbilled receivables	134,744			127,803
Receivables, net	$	502,216		$	463,062

4.           INVENTORIES

Inventoried costs contain amounts relating to long-term contracts and programs with long production cycles, a portion of which will not be realized within one year. Long-term contract inventory includes an immaterial amount of claims or other similar items subject to uncertainty concerning their determination or realization. Inventories are valued at the lower of cost or market.

The composition of inventories is as follows:

(In thousands)	June 30, 2017			December 31, 2016
Raw materials	$	195,461		$	189,228
Work-in-process	85,321			73,843
Finished goods	123,362			112,478
Inventoried costs related to U.S. Government and other long-term contracts	60,008			57,516
Gross inventories	464,152			433,065
Less:  Inventory reserves	(58,108		)	(54,988		)
Progress payments applied, principally related to long-term contracts	(9,799		)	(11,103		)
Inventories, net	$	396,245		$	366,974

Inventoried costs related to long-term contracts include capitalized contract development costs related to certain aerospace and defense programs of $29.9 million and $28.8 million, as of June 30, 2017 and December 31, 2016, respectively. These capitalized costs will be liquidated as production units are delivered to the customers.  As of June 30, 2017 and December 31, 2016, $4.6 million and $3.9 million, respectively, are scheduled to be liquidated under existing firm orders.

5.           GOODWILL

The changes in the carrying amount of goodwill for the six months endedJune 30, 2017 are as follows:

(In thousands)	Commercial/Industrial		Defense		Power		Consolidated
December 31, 2016	$	436,141	$	327,655	$	187,261	$	951,057
Acquisitions	2,420		113,847		—		116,267
Foreign currency translation adjustment	6,468		9,044		108		15,620
June 30, 2017	$	445,029	$	450,546	$	187,369	$	1,082,944

6.           OTHER INTANGIBLE ASSETS, NET

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CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

NOTES to CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

The following tables present the cumulative composition of the Corporation’s intangible assets:

	June 30, 2017							December 31, 2016
(In thousands)	Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net
Technology	$	240,858	$	(105,400	)	$	135,458	$	166,859	$	(98,266	)	$	68,593
Customer related intangibles	363,500		(168,351		)	195,149		349,742		(157,154		)	192,588
Other intangible assets	40,250		(24,866		)	15,384		36,709		(26,429		)	10,280
Total	$	644,608	$	(298,617	)	$	345,991	$	553,310	$	(281,849	)	$	271,461

During the six months ended June 30, 2017, the Corporation acquired intangible assets of $88.9 million. The Corporation acquired Technology of $73.0 million, Customer related intangibles of $12.9 million, and Other intangible assets of $3.0 million, which have a weighted average amortization period of 15.0 years, 16.3 years, and 7.0 years, respectively.

Total intangible amortization expense for the six months endedJune 30, 2017 was $19.1 million as compared to $16.8 million in the prior year period.  The estimated amortization expense for the five years ending December 31, 2017 through 2021 is $38.7 million, $37.7 million, $36.0 million, $34.1 million, and $32.3 million, respectively.

7.           FAIR VALUE OF FINANCIAL INSTRUMENTS

Forward Foreign Exchange and Currency Option Contracts

The Corporation has foreign currency exposure primarily in the United Kingdom, Europe, and Canada.  The Corporation uses financial instruments, such as forward and option contracts, to hedge a portion of existing and anticipated foreign currency denominated transactions.  The purpose of the Corporation’s foreign currency risk management program is to reduce volatility in earnings caused by exchange rate fluctuations.  Guidance on accounting for derivative instruments and hedging activities requires companies to recognize all of the derivative financial instruments as either assets or liabilities at fair value in the Condensed Consolidated Balance Sheets based upon quoted market prices for comparable instruments.

Interest Rate Risks and Related Strategies

The Corporation’s primary interest rate exposure results from changes in U.S. dollar interest rates. The Corporation’s policy is to manage interest cost using a mix of fixed and variable rate debt. The Corporation periodically uses interest rate swaps to manage such exposures. Under these interest rate swaps, the Corporation exchanges, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to an agreed-upon notional principal amount. The Corporation’s foreign exchange contracts and interest rate swaps are considered Level 2 instruments which are based on market based inputs or unobservable inputs and corroborated by market data such as quoted prices, interest rates, or yield curves.

Effects on Consolidated Balance Sheets

As of June 30, 2017 and December 31, 2016, the fair values of the asset and liability derivative instruments are immaterial.

Effects on Condensed Consolidated Statements of Earnings

Undesignated hedges

The location and amount of losses or (gains) recognized in income on forward exchange derivative contracts not designated for hedge accounting for the three and six months ended June 30, were as follows:

	Three Months Ended					Six Months Ended
(In thousands)	June 30,					June 30,
Derivatives not designated as hedging instrument	2017			2016		2017		2016
Forward exchange contracts:
General and administrative expenses	$	(93	)	$	4,452	$	614	$	5,036

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CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

NOTES to CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Debt

The estimated fair value amounts were determined by the Corporation using available market information that is primarily based on quoted market prices for the same or similar issues as of June 30, 2017.  Accordingly, all of the Corporation’s debt is valued at a Level 2.  The fair values described below may not be indicative of net realizable value or reflective of future fair values.  Furthermore, the use of different methodologies to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.

	June 30, 2017						December 31, 2016
(In thousands)	Carrying Value			Estimated Fair Value			Carrying Value			Estimated Fair Value
5.51% Senior notes due 2017	150,000			152,161			150,000			154,509
3.84% Senior notes due 2021	100,000			104,107			100,000			102,463
3.70% Senior notes due 2023	225,000			232,173			225,000			226,946
3.85% Senior notes due 2025	100,000			103,389			100,000			100,338
4.24% Senior notes due 2026	200,000			211,038			200,000			203,592
4.05% Senior notes due 2028	75,000			77,685			75,000			74,630
4.11% Senior notes due 2028	100,000			104,158			100,000			99,876
Other debt	820			820			668			668
Total debt	950,820			985,531			950,668			963,022
Debt issuance costs, net	(907		)	(907		)	(984		)	(984		)
Unamortized interest rate swap proceeds	15,717			15,717			16,614			16,614
Total debt, net	$	965,630		$	1,000,341		$	966,298		$	978,652

8.           PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS

The following tables are consolidated disclosures of all domestic and foreign defined pension plans as described in the Corporation’s 2016 Annual Report on Form 10-K.  

Pension Plans

The components of net periodic pension cost for the three and six months ended June 30, 2017 and 2016 were as follows:

	Three Months Ended						Six Months Ended
(In thousands)	June 30,						June 30,
	2017			2016			2017			2016
Service cost	$	6,474		$	6,248		$	12,945		$	12,485
Interest cost	6,236			7,709			12,455			15,412
Expected return on plan assets	(13,310		)	(13,590		)	(26,595		)	(27,171		)
Amortization of prior service cost	(26		)	(11		)	(51		)	(23		)
Amortization of unrecognized actuarial loss	3,585			3,093			7,166			6,186
Net periodic benefit cost	$	2,959		$	3,449		$	5,920		$	6,889

During the six months ended June 30, 2017, the Corporation made no contributions to the Curtiss-Wright Pension Plan, and does not expect to make any contributions in 2017. Contributions to the foreign benefit plans are not expected to be material in 2017.

Defined Contribution Retirement Plan

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CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

NOTES to CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Effective January 1, 2014, all non-union employees who are not currently receiving final or career average pay benefits became eligible to receive employer contributions in the Corporation’s sponsored 401(k) plan. The employer contributions include both employer match and non-elective contribution components, up to a maximum employer contribution of 6% of eligible compensation. During the six months endedJune 30, 2017 and 2016, the expense relating to the plan was $6.8 million and $6.0 million, respectively. The Corporation made $9.4 million in contributions to the plan during the six months ended June 30, 2017, and expects to make total contributions of $11.8 million in 2017.

9.           EARNINGS PER SHARE

Diluted earnings per share were computed based on the weighted-average number of shares outstanding plus all potentially dilutive common shares.  A reconciliation of basic to diluted shares used in the earnings per share calculation is as follows:

	Three Months Ended		Six Months Ended
(In thousands)	June 30,		June 30,
	2017	2016	2017	2016
Basic weighted-average shares outstanding	44,213	44,487	44,221	44,526
Dilutive effect of stock options and deferred stock compensation	594	677	604	669
Diluted weighted-average shares outstanding	44,807	45,164	44,825	45,195

For the three months and six months ended June 30, 2017, approximately 38,000 shares issuable under equity-based awards were excluded from the calculation of diluted earnings per share as they were anti-dilutive based on the average stock price during the period. For the three and six months ended June 30, 2016, there were no anti-dilutive equity-based awards.

10.           SEGMENT INFORMATION

The Corporation manages and evaluates its operations based on end markets to strengthen its ability to service customers and recognize certain organizational efficiencies. Based on this approach, the Corporation has three reportable segments: Commercial/Industrial, Defense, and Power.

The Corporation’s measure of segment profit or loss is operating income. Interest expense and income taxes are not reported on an operating segment basis as they are not considered in the segments’ performance evaluation by the Corporation’s chief operating decision-maker, its Chief Executive Officer.

Net sales and operating income by reportable segment were as follows:

	Three Months Ended						Six Months Ended
(In thousands)	June 30,						June 30,
	2017			2016			2017			2016
Net sales
Commercial/Industrial	$	291,856		$	290,428		$	570,912		$	565,633
Defense	127,399			114,877			242,236			220,607
Power	149,970			129,123			280,565			252,869
Less: Intersegment revenues	(1,572		)	(1,662		)	(2,469		)	(2,836		)
Total consolidated	$	567,653		$	532,766		$	1,091,244		$	1,036,273
Operating income (expense)
Commercial/Industrial	$	43,693		$	38,957		$	74,314		$	69,009
Defense	21,187			18,609			32,342			35,454
Power	24,870			16,114			41,410			30,742
Corporate and eliminations (1)	(6,479		)	(5,591		)	(13,568		)	(9,853		)
Total consolidated	$	83,271		$	68,089		$	134,498		$	125,352

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CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

NOTES to CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

⁽¹⁾ Corporate and eliminations includes pension and other postretirement benefit expense, certain environmental costs related to remediation at legacy sites, foreign currency transactional gains and losses, and certain other expenses.

Adjustments to reconcile operating income to earnings before income taxes are as follows:

	Three Months Ended				Six Months Ended
(In thousands)	June 30,				June 30,
	2017		2016		2017		2016
Total operating income	$	83,271	$	68,089	$	134,498	$	125,352
Interest expense	10,750		10,273		21,127		20,206
Other income, net	190		101		502		335
Earnings before income taxes	$	72,711	$	57,917	$	113,873	$	105,481

(In thousands)	June 30, 2017		December 31, 2016
Identifiable assets
Commercial/Industrial	$	1,420,411	$	1,391,040
Defense	1,013,636		751,859
Power	517,053		516,321
Corporate and Other	170,174		378,561
Total consolidated	$	3,121,274	$	3,037,781

11.           ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The cumulative balance of each component of accumulated other comprehensive income (AOCI), net of tax, is as follows:

(In thousands)	Foreign currency translation adjustments, net			Total pension and postretirement adjustments, net			Accumulated other comprehensive income (loss)
December 31, 2015	$	(107,810	)	$	(118,118	)	$	(225,928	)
Other comprehensive income (loss) before reclassifications (1)	(64,840		)	(7,892		)	(72,732		)
Amounts reclassified from accumulated other comprehensive loss (1)	—			6,904			6,904
Net current period other comprehensive loss	(64,840		)	(988		)	(65,828		)
December 31, 2016	$	(172,650	)	$	(119,106	)	$	(291,756	)
Other comprehensive income (loss) before reclassifications (1)	43,901			(507		)	43,394
Amounts reclassified from accumulated other comprehensive income (loss) (1)	—			4,201			4,201
Net current period other comprehensive income	43,901			3,694			47,595
June 30, 2017	$	(128,749	)	$	(115,412	)	$	(244,161	)

(1) All amounts are after tax.

Details of amounts reclassified from accumulated other comprehensive income (loss) are below:

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CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

NOTES to CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(In thousands)	Amount reclassified from AOCI			Affected line item in the statement where net earnings is presented
Defined benefit pension and other postretirement benefit plans
Amortization of prior service costs	379			(1)
Amortization of actuarial losses	(7,064		)	(1)
	(6,685		)	Total before tax
	2,484			Income tax
Total reclassifications	$	(4,201	)	Net of tax

(1) These items are included in the computation of net periodic benefit cost.  See Note 8, Pension and Other Postretirement Benefit Plans.

12.           CONTINGENCIES AND COMMITMENTS

Legal Proceedings

The Corporation has been named in a number of lawsuits that allege injury from exposure to asbestos.  To date, the Corporation has not been found liable for or paid any material sum of money in settlement in any case.  The Corporation believes its minimal use of asbestos in its past operations and the relatively non-friable condition of asbestos in its products makes it unlikely that it will face material liability in any asbestos litigation, whether individually or in the aggregate.  The Corporation maintains insurance coverage for these potential liabilities and believes adequate coverage exists to cover any unanticipated asbestos liability.

In December 2013, the Corporation, along with other unaffiliated parties, received a claim from Canadian Natural Resources Limited (CNRL) filed in the Court of Queen’s Bench of Alberta, Judicial District of Calgary. The claim pertains to a January 2011 fire and explosion at a delayed coker unit at its Fort McMurray refinery that resulted in the injury of five CNRL employees, damage to property and equipment, and various forms of consequential loss, such as loss of profit, lost opportunities, and business interruption. The fire and explosion occurred when a CNRL employee bypassed certain safety controls and opened an operating coker unit. The total quantum of alleged damages arising from the incident has not been finalized, but is estimated to meet or exceed $1 billion.  The Corporation maintains various forms of commercial, property and casualty, product liability, and other forms of insurance; however, such insurance may not be adequate to cover the costs associated with a judgment against us. The Corporation is currently unable to estimate an amount, or range of potential losses, if any, from this matter. The Corporation believes it has adequate legal defenses and intends to defend this matter vigorously. The Corporation’s financial condition, results of operations, and cash flows, could be materially affected during a future fiscal quarter or fiscal year by unfavorable developments or outcome regarding this claim.

In addition to the CNRL litigation, the Corporation is party to a number of other legal actions and claims, none of which individually or in the aggregate, in the opinion of management, are expected to have a material effect on the Corporation’s results of operations or financial position.

Westinghouse Bankruptcy

On March 29, 2017, Westinghouse Electric Company (“WEC”) filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Southern District of New York, Case No. 17-10751.  The Bankruptcy Court overseeing the Bankruptcy Case has approved, on an interim basis, an $800 million Debtor-in-Possession Financing Facility to help WEC finance its business operations during the reorganization process. The Corporation had approximately $6.5 million in pre-petition billings outstanding with WEC as of June 30, 2017. The Corporation will continue, for the time being and while it monitors and evaluates the Bankruptcy Case, to honor its executory contracts and expects to collect all post-petition amounts due.  At this time, the Corporation has assessed that any pre-petition amounts will be substantially recoverable and does not believe that rejection of the outstanding contracts with WEC, taken in part or combined, would have a material adverse impact on the Company’s cash flow or operations.  The Corporation continues to monitor the status of the WEC bankruptcy as well as the status of the plant construction projects for potential impacts on our business.

Letters of Credit and Other Financial Arrangements

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CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

NOTES to CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

The Corporation enters into standby letters of credit agreements and guarantees with financial institutions and customers primarily relating to guarantees of repayment, future performance on certain contracts to provide products and services, and to secure advance payments from certain international customers. As of June 30, 2017 and December 31, 2016, there were $48.8 million and $47.2 million of stand-by letters of credit outstanding, respectively, and $13.9 million and $12.8 million of bank guarantees outstanding, respectively. In addition, the Corporation is required to provide the Nuclear Regulatory Commission financial assurance demonstrating its ability to cover the cost of decommissioning its Cheswick, Pennsylvania facility upon closure, though the Corporation does not intend to close this facility.  The Corporation has provided this financial assurance in the form of a $56.0 million surety bond.

AP1000 Program

The Electro-Mechanical Division, which is within the Corporation’s Power segment, is the reactor coolant pump (RCP) supplier for the Westinghouse AP1000 nuclear power plants under construction in China and the United States.  The terms of the AP1000 China and United States contracts include liquidated damage penalty provisions for failure to meet contractual delivery dates if the Corporation caused the delay and the delay was not excusable. On October 10, 2013, the Corporation received a letter from Westinghouse stating entitlements to the maximum amount of liquidated damages allowable under the AP1000 China contract from Westinghouse of approximately $25 million. The Corporation would be liable for liquidated damages under the contract if certain contractual delivery dates were not met and if the Corporation was deemed responsible for the delay. As of June 30, 2017, the Corporation has not met certain contractual delivery dates under its AP 1000 China and US contracts; however there are significant uncertainties as to which parties are responsible for the delays. The Corporation believes it has adequate legal defenses and intends to vigorously defend this matter. Given the uncertainties surrounding the responsibility for the delays, no accrual has been made for this matter as of June 30, 2017.  As of June 30, 2017, the range of possible loss is $0 to $31 million for the AP1000 US contract, for a total range of possible loss of $0 to $55.5 million.

13. SUBSEQUENT EVENTS

On July 20, 2017, the Board of Directors unanimously authorized a $0.02, or 15%, increase in the Corporation’s quarterly dividend to $0.15 per share. The increase will be reflected in the Corporation’s third quarter distribution, to be paid in October 2017.

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CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

PART I- ITEM 2

MANAGEMENT’S DISCUSSION and ANALYSIS of

FINANCIAL CONDITION and RESULTS OF OPERATIONS

FORWARD-LOOKING STATEMENTS

Except for historical information, this Quarterly Report on Form 10-Q may be deemed to contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  Examples of forward-looking statements include, but are not limited to: (a) projections of or statements regarding return on investment, future earnings, interest income, sales, volume, other income, earnings or loss per share, growth prospects, capital structure, and other financial terms, (b) statements of plans and objectives of management, (c) statements of future economic performance, and (d) statements of assumptions, such as economic conditions underlying other statements. Such forward-looking statements can be identified by the use of forward-looking terminology such as “anticipates,” “believes,” “continue,” “could,” “estimate,” “expects,” “intend,” “may,” “might,” “outlook,” “potential,” “predict,” “should,” “will,” as well as the negative of any of the foregoing or variations of such terms or comparable terminology, or by discussion of strategy.  No assurance may be given that the future results described by the forward-looking statements will be achieved.  While we believe these forward-looking statements are reasonable, they are only predictions and are subject to known and unknown risks, uncertainties, and other factors, many of which are beyond our control, which could cause actual results, performance, or achievement to differ materially from anticipated future results, performance, or achievement expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, those described in “Item 1A. Risk Factors” of our 2016 Annual Report on Form 10-K, and elsewhere in that report, those described in this Quarterly Report on Form 10-Q, and those described from time to time in our future reports filed with the Securities and Exchange Commission.  Such forward-looking statements in this Quarterly Report on Form 10-Q include, without limitation, those contained in Item 1. Financial Statements and Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.

Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements.  These forward-looking statements speak only as of the date they were made, and we assume no obligation to update forward-looking statements to reflect actual results or changes in or additions to the factors affecting such forward-looking statements.

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CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

PART I - ITEM 2

MANAGEMENT’S DISCUSSION and ANALYSIS of

FINANCIAL CONDITION and RESULTS OF OPERATIONS, continued

COMPANY ORGANIZATION

Curtiss-Wright Corporation is a diversified, multinational provider of highly engineered, technologically advanced, value-added products and services to a broad range of industries which are reported through our Commercial/Industrial, Defense, and Power segments. We are positioned as a market leader across a diversified array of niche markets through engineering and technological leadership, precision manufacturing, and strong relationships with our customers. We provide products and services to a number of global markets and have achieved balanced growth through the successful application of our core competencies in engineering and precision manufacturing. Our overall strategy is to be a balanced and diversified company, less vulnerable to cycles or downturns in any one market, and to establish strong positions in profitable niche markets. Approximately 38% of our 2017 revenues are expected to be generated from defense-related markets.

RESULTS OF OPERATIONS

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is intended to help the reader understand the results of operations and financial condition of the Corporation for the three and six month periods ended June 30, 2017. The financial information as of June 30, 2017 should be read in conjunction with the financial statements for the year ended December 31, 2016 contained in our Form 10-K.

The MD&A is organized into the following sections: Consolidated Statements of Earnings, Results by Business Segment, and Liquidity and Capital Resources. Our discussion will be focused on the overall results of continuing operations followed by a more detailed discussion of those results within each of our reportable segments.

Our three reportable segments are generally concentrated in a few end markets; however, each may have sales across several end markets.  An end market is defined as an area of demand for products and services.  The sales for the relevant markets will be discussed throughout the MD&A.

Analytical Definitions

Throughout management’s discussion and analysis of financial condition and results of operations, the terms “incremental” and “organic” are used to explain changes from period to period. The term “incremental” is used to highlight the impact acquisitions and divestitures had on the current year results. The results of operations for acquisitions are incremental for the first twelve months from the date of acquisition. Additionally, the results of operations of divested businesses are removed from the comparable prior year period for purposes of calculating “organic” or “incremental” results. The definition of “organic” excludes the effect of foreign currency translation.

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CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

PART I - ITEM 2

MANAGEMENT’S DISCUSSION and ANALYSIS of

FINANCIAL CONDITION and RESULTS OF OPERATIONS, continued

Consolidated Statements of Earnings
	Three Months Ended								Six Months Ended
(In thousands)	June 30,								June 30,
	2017			2016			% change		2017			2016			% change
Sales
Commercial/Industrial	$	291,599		$	290,046		1	%	$	570,421		$	564,773		1	%
Defense	126,361			113,961			11	%	241,023			219,352			10	%
Power	149,693			128,759			16	%	279,800			252,148			11	%
Total sales	$	567,653		$	532,766		7	%	$	1,091,244		$	1,036,273		5	%
Operating income
Commercial/Industrial	$	43,693		$	38,957		12	%	$	74,314		$	69,009		8	%
Defense	21,187			18,609			14	%	32,342			35,454			(9	)%
Power	24,870			16,114			54	%	41,410			30,742			35	%
Corporate and eliminations	(6,479		)	(5,591		)	(16	)%	(13,568		)	(9,853		)	(38	)%
Total operating income	$	83,271		$	68,089		22	%	$	134,498		$	125,352		7	%
Interest expense	10,750			10,273			5	%	21,127			20,206			5	%
Other income, net	190			101			NM		502			335			NM
Earnings before taxes	72,711			57,917			26	%	113,873			105,481			8	%
Provision for income taxes	(22,061		)	(17,954		)	23	%	(30,676		)	(32,699		)	(6	)%
Net earnings	$	50,650		$	39,963				$	83,197		$	72,782
New orders	$	548,201		$	523,649		5	%	$	1,192,477		$	1,152,269		3	%
NM- not a meaningful percentage

Components of sales and operating income increase (decrease):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017 vs. 2016				2017 vs. 2016
	Sales		Operating Income		Sales		Operating Income
Organic	5	%	22	%	4	%	12	%
Acquisitions	3	%	(2	%)	2	%	(6	%)
Foreign currency	(1	%)	2	%	(1	%)	1	%
Total	7	%	22	%	5	%	7	%

Sales for the second quarter of 2017increased$35 million, or 7%, to $568 million, compared with the prior year period. On a segment basis, sales from the Commercial/Industrial segment, Defense segment, and Power segment increased$2 million, $12 million, and $21 million, respectively.

Sales during the six months ended June 30, 2017increased$55 million, or 5%, to $1,091 million, compared with the prior year period. On a segment basis, sales from the Commercial/Industrial, Defense and Power segments increased $5 million, $22 million, and $28 million, respectively. Changes in sales by segment are discussed in further detail in the results by business segment section below.

Operating income in the second quarter of 2017increased$15 million, or 22%, to $83 million, and operating margin increased190 basis points to 14.7% compared with the same period in 2016. Increases in operating income and operating margin were primarily attributable to higher production levels on the AP1000 China Direct program and improved profitability in the

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PART I - ITEM 2

MANAGEMENT’S DISCUSSION and ANALYSIS of

FINANCIAL CONDITION and RESULTS OF OPERATIONS, continued

aftermarket business in our Power segment. Operating income and operating margin also benefited from improved volume on industrial vehicle products in the Commercial/Industrial segment, and our ongoing margin improvement initiatives.

Operating income during the six months ended June 30, 2017increased$9 million, or 7%, to $134 million and operating margin increased20 basis points to 12.3%, compared with the same period in 2016. Increases in operating income and operating margin were primarily attributable to higher production levels in our Power segment on the AP1000 China Direct Program, improved volume on industrial vehicle products in the Commercial/Industrial segment, and our ongoing margin improvement initiatives. These increases were partially offset by first year purchase accounting costs on the TTC acquisition, which reduced operating income by $7 million.

Non-segment operating expense in the second quarter and six months ended June 30, 2017 increased $1 million, or 16%, to $6 million and $4 million, or 38%, to $14 million, respectively, from the comparable prior year periods. These increases were primarily due to foreign exchange losses and other corporate costs.

Interest expense in the second quarter and six months ended June 30, 2017 of $11 million and $21 million, respectively, was essentially flat as compared to the respective prior year periods.

The effective tax rate for the three months ended June 30, 2017 was 30.3%, as compared to an effective tax rate of 31.0% in the prior year period. The reduction in rate was principally driven by changes in valuation allowances.  The effective tax rate for the six months ended June 30, 2017 of 26.9% as compared to an effective tax rate of 31.0% in the prior year period, was primarily due to our current year adoption of ASU 2016-09 Improvements to Employee Share-Based Payment Accounting and changes in valuation allowances. Without the adoption of ASU 2016-09, our effective tax rate for the six months ended June 30, 2017 was 30.5%.

Comprehensive incomein the second quarter of 2017 was $85 million, compared to comprehensive income of $10 million in the prior year period. The change was primarily due to the following:

• Net earnings increased $11 million, primarily due to the higher operating income discussed above.

• Foreign currency translation adjustments in the second quarter resulted in a $33 million comprehensive gain, compared to a $32 million comprehensive loss in the prior year period. The comprehensive gain during the current period was primarily attributed to increases in the British Pound and Euro.

• Pension and postretirement adjustments within comprehensive income of $2 million were essentially flat against the comparable prior year period.

Comprehensive income for the six months ended June 30, 2017 was $131 million, compared to comprehensive income of $61 million in the prior year period. The change was primarily due to the following:

• Net earnings increased $10 million, primarily due to the higher operating income discussed above.

• Foreign currency translation adjustments for the six months ended June 30, 2017 resulted in a $44 million comprehensive gain, compared to a $15 million comprehensive loss in the prior period. The comprehensive gain during the current period was primarily attributed to increases in the British Pound, Euro, and Canadian dollar.

• Pension and postretirement adjustments within comprehensive income of $4 million were essentially flat against the comparable prior year period.

New orders increased$25 million and $40 million during the three and six months ended June 30, 2017, from the comparable prior year periods. The increase in new orders for each of the respective periods was primarily due to the acquisition of TTC in the Defense segment and a significant government order and higher demand for our industrial vehicle products in the Commercial/Industrial segment. These increases were partially offset by a decrease in the Power segment due to the timing of funding for pumps and generators with government customers. New orders during the six months ended June 30, 2017 also benefited favorably from a government order for aircraft handling systems in the Defense segment, partially offset by the timing of funding from government customers in the Commercial/Industrial segment. 

RESULTS BY BUSINESS SEGMENT

Commercial/Industrial

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CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

PART I - ITEM 2

MANAGEMENT’S DISCUSSION and ANALYSIS of

FINANCIAL CONDITION and RESULTS OF OPERATIONS, continued

The following tables summarize sales, operating income and margin, and new orders within the Commercial/Industrial segment.

	Three Months Ended								Six Months Ended
(In thousands)	June 30,								June 30,
	2017			2016			% change		2017			2016			% change
Sales	$	291,599		$	290,046		1	%	$	570,421		$	564,773		1	%
Operating income	43,693			38,957			12	%	74,314			69,009			8	%
Operating margin	15.0		%	13.4		%	160	bps	13.0		%	12.2		%	80	bps
New orders	$	315,014		$	280,332		12	%	$	642,921		$	637,719		1	%

Components of sales and operating income increase (decrease):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017 vs. 2016				2017 vs. 2016
	Sales		Operating Income		Sales		Operating Income
Organic	2	%	12	%	2	%	7	%
Acquisitions	—	%	—	%	—	%	—	%
Foreign currency	(1	%)	—	%	(1	%)	1	%
Total	1	%	12	%	1	%	8	%

Sales in the Commercial/Industrial segment are primarily generated from the commercial aerospace and general industrial markets, and to a lesser extent the defense and power generation markets.

Sales in the second quarterincreased$2 million, or 1%, to $292 million from the prior year period. In the general industrial market, sales increased $10 million primarily due to higher demand for our industrial vehicle products. This increase was partially offset by lower sales in the naval defense market, primarily due to the timing of production on the Virginia-class submarine program. Sales in the commercial aerospace market decreased primarily due to lower sales of actuation and sensors products.

Sales during the six months ended June 30, 2017increased$6 million, or 1%, to $570 million from the prior year period. In the general industrial market, we experienced higher sales of $18 million primarily due to increased demand for our industrial vehicle and industrial automation products. This increase was partially offset by lower sales in the naval defense and commercial aerospace markets primarily due to the timing of production on the Virginia-class submarine program and lower sales of actuation and sensors products, respectively. Unfavorable foreign currency translation reduced sales by $8 million.

Operating income during the second quarterincreased$5 million, or 12%, to $44 million from the prior year period, while operating margin increased160 basis points to 15.0%. Operating income during the six months ended June 30, 2017increased$5 million, or 8%, to $74 million from the prior year period, while operating margin increased80 basis points to 13.0%. The increases in operating income and operating margin for each of the respective periods were primarily due to ongoing margin improvement initiatives and improved volume on industrial vehicle and medical mobility products. These increases were partially offset by lower profitability for sensors and controls products due to lower volume and unfavorable mix.

New ordersincreased$35 million and $5 million during the three and six months ended June 30, 2017 from the comparable prior year periods, primarily due to a government order for the F-35 Joint Strike Fighter (JSF) and increased demand for our industrial vehicle products. The increase in new orders during the six months ended June 30, 2017 was partially offset by the timing of funding from government customers.

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CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

PART I - ITEM 2

MANAGEMENT’S DISCUSSION and ANALYSIS of

FINANCIAL CONDITION and RESULTS OF OPERATIONS, continued

Defense

The following tables summarize sales, operating income and margin, and new orders within the Defense segment.

	Three Months Ended								Six Months Ended
(In thousands)	June 30,								June 30,
	2017			2016			% change		2017			2016			% change
Sales	$	126,361		$	113,961		11	%	$	241,023		$	219,352		10	%
Operating income	21,187			18,609			14	%	32,342			35,454			(9	%)
Operating margin	16.8		%	16.3		%	50	bps	13.4		%	16.2		%	(280	) bps
New orders	$	118,048		$	92,732		27	%	$	252,021		$	198,624		27	%

Components of sales and operating income increase (decrease):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017 vs. 2016				2017 vs. 2016
	Sales		Operating Income		Sales		Operating Income
Organic	—	%	14	%	—	%	8	%
Acquisitions	12	%	(7	%)	11	%	(20	%)
Foreign currency	(1	%)	7	%	(1	%)	3	%
Total	11	%	14	%	10	%	(9	%)

Sales in the Defense segment are primarily to the defense markets and, to a lesser extent, the commercial aerospace and the general industrial markets.

Sales in the second quarterincreased$12 million, or 11%, to $126 million from the prior year period, primarily due to the incremental impact of our TTC acquisition which contributed $13 million in sales. Excluding the impact of TTC, sales were relatively flat as higher foreign military sales and increased unmanned aerial vehicle (UAV) production in the aerospace defense market were largely offset by declines in helicopter sales.

Sales during the six months ended June 30, 2017increased$22 million, or 10%, to $241 million from the prior year period, primarily due to the incremental impact of our TTC acquisition which contributed $23 million in sales. Excluding the impact of TTC, sales were relatively flat. In the aerospace defense market, higher foreign military sales and increased UAV production were largely offset by declines in helicopter sales. Sales in the ground defense market decreased primarily due to lower sales of embedded computing products on the G/ATOR program, partially offset by increased demand for our turret drive stabilization systems (TDSS) on international ground defense platforms.

Operating income during the second quarterincreased $3 million, or 14%, to $21 million, and operating margin increased50 basis points from the prior year quarter to 16.8%. The increases in operating income and operating margin were primarily driven by favorable mix for our defense electronics products, as well as the benefits of our margin improvement initiatives. Favorable foreign currency translation also benefited operating income by approximately $1 million.

Operating income during the six months ended June 30, 2017decreased$3 million, or 9%, to $32 million, and operating margin decreased280 basis points from the prior year period to 13.4%. The decreases in operating income and operating margin were primarily due to first year purchase accounting costs on the TTC acquisition which reduced operating income by $7 million. This decrease was partially offset by increased volume on our COTS products.

New orders increased$25 million during the three months ended June 30, 2017 from the comparable prior year period, primarily due to the acquisition of TTC. New orders increased$53 million during the six months ended June 30, 2017 from the comparable prior year period, primarily due to the acquisition of TTC and a government order for aircraft handling systems.

Page 25

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

PART I - ITEM 2

MANAGEMENT’S DISCUSSION and ANALYSIS of

FINANCIAL CONDITION and RESULTS OF OPERATIONS, continued

Power

The following tables summarize sales, operating income and margin, and new orders within the Power segment.

	Three Months Ended								Six Months Ended
(In thousands)	June 30,								June 30,
	2017			2016			% change		2017			2016			% change
Sales	$	149,693		$	128,759		16	%	$	279,800		$	252,148		11	%
Operating income	24,870			16,114			54	%	41,410			30,742			35	%
Operating margin	16.6		%	12.5		%	410	bps	14.8		%	12.2		%	260	bps
New orders	$	115,139		$	150,585		(24	%)	$	297,535		$	315,926		(6	%)

Components of sales and operating income increase (decrease):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017 vs. 2016				2017 vs. 2016
	Sales		Operating Income		Sales		Operating Income
Organic	16	%	54	%	11	%	35	%
Acquisitions	—	%	—	%	—	%	—	%
Foreign currency	—	%	—	%	—	%	—	%
Total	16	%	54	%	11	%	35	%

Sales in the Power segment are primarily to the power generation and naval defense markets.

Sales in the second quarterincreased$21 million, or 16%, to $150 million, primarily due to higher production levels on the AP1000 China Direct and domestic programs which resulted in increased sales of $16 million and $4 million, respectively. The power generation market also benefited from improved aftermarket sales supporting currently operating domestic nuclear reactors primarily due to a strong spring outage season. In the naval defense market, higher production levels of CVN-80 pumps and valves were offset by the timing of production on the Virginia-class submarine program.

Sales for the six months ended June 30, 2017increased$28 million, or 11%, to $280 million from the prior year period, as higher production revenues on the AP1000 China Direct and domestic programs of $35 million and $6 million, respectively, were partially offset by lower aftermarket sales of $12 million supporting domestic and international nuclear reactors. In the naval defense market, higher production levels of CVN-80 pumps and valves were offset by the timing of production on the Virginia-class submarine program and lower sales of CVN-79 pumps and valves as production is nearing completion.

Operating income in the second quarter of 2017increased$9 million, or 54%, to $25 million, and operating margin increased410 basis points from the prior year period to 16.6%. Operating income during the six months ended June 30, 2017increased$11 million, or 35%, to $41 million, and operating margin increased260 basis points from the prior year period to 14.8%. The increases in operating income and operating margin for each of the respective periods were primarily driven by higher production levels on the AP1000 China Direct program, as well as improved profitability in the nuclear aftermarket business and the benefits of our ongoing margin improvement initiatives.

New orders decreased$35 million during the three months ended June 30, 2017 from the comparable prior year period primarily due to the timing of funding for pumps and generators with government customers. New orders decreased$18 million during the six months ended June 30, 2017 from the comparable prior year period primarily due to the timing of funding of government orders and a commercial order for pumps in the prior year period. The decrease for the six months ended June 30, 2017 was partially offset by new orders for international nuclear reactors.

SUPPLEMENTARY INFORMATION

Page 26

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

PART I - ITEM 2

MANAGEMENT’S DISCUSSION and ANALYSIS of

FINANCIAL CONDITION and RESULTS OF OPERATIONS, continued

The table below depicts sales by end market. End market sales help provide an enhanced understanding of our businesses and the markets in which we operate. The table has been included to supplement the discussion of our consolidated operating results.

Net Sales by End Market
	Three Months Ended						Six Months Ended
(In thousands)	June 30,						June 30,
	2017		2016		% change		2017		2016		% change
Defense markets:
Aerospace	$	88,097	$	76,558	15	%	$	153,880	$	138,107	11	%
Ground	17,515		19,880		(12	%)	37,251		39,055		(5	%)
Naval	100,048		103,998		(4	%)	191,018		196,950		(3	%)
Other	5,964		2,541		135	%	13,007		3,794		243	%
Total Defense	$	211,624	$	202,977	4	%	$	395,156	$	377,906	5	%
Commercial markets:
Aerospace	$	101,631	$	102,595	(1	%)	$	200,455	$	204,781	(2	%)
Power Generation	114,773		95,628		20	%	220,325		195,518		13	%
General Industrial	139,625		131,566		6	%	275,308		258,068		7	%
Total Commercial	$	356,029	$	329,789	8	%	$	696,088	$	658,367	6	%
Total Curtiss-Wright	$	567,653	$	532,766	7	%	$	1,091,244	$	1,036,273	5	%

Note: Certain amounts in the prior year have been reclassed to conform to the current year presentation.

Defense markets

Sales during the three months ended June 30, 2017increased$9 million, or 4%, to $212 million against the comparable prior year period while sales during the six months ended June 30, 2017increased$17 million, or 5%, to $395 million. The increases in each of the respective periods were primarily due to higher sales in the aerospace defense and other defense markets, partially offset by decreased sales in the ground defense and naval defense markets. The sales increases in the aerospace defense market were primarily due to the incremental impact of our TTC acquisition, which contributed $8 million and $15 million in sales, respectively, during the three and six months ended June 30, 2017. The aerospace defense market also benefited favorably from increased demand for UAVs, partially offset by declines in helicopter sales. Sales in the ground defense market decreased primarily due to lower sales of embedded computing products on the G/ATOR program, partially offset by increased demand for our TDSS products on international ground defense platforms. Lower sales in the naval defense market were primarily due to the timing of production on the Virginia-class submarine program and the substantial completion of CVN-79 pump and valve production. These decreases were partially offset by higher production levels of CVN-80 pumps and valves. Other defense sales increased during both respective periods due to various projects across government entities.

Commercial markets

Sales during the three months ended June 30, 2017increased$26 million, or 8%, to $356 million against the comparable prior year period while sales during the six months ended June 30, 2017increased$38 million, or 6%, to $696 million. The increases in each of the respective periods were primarily due to increased sales in the general industrial and power generation markets. In the general industrial market, we experienced higher demand for our industrial vehicle products. Within the power generation market, we generated higher production revenues of $16 million and $35 million on the AP1000 China Direct Program for the three and six months ended June 30, 2017, respectively. Higher sales in the power generation market for the six months ended June 30, 2017 were partially offset by lower aftermarket sales of $10 million supporting domestic and international nuclear reactors. Increases in the general industrial and power generation markets were partially offset by lower actuation system sales in the commercial aerospace market.

LIQUIDITY AND CAPITAL RESOURCES

Page 27

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

PART I - ITEM 2

MANAGEMENT’S DISCUSSION and ANALYSIS of

FINANCIAL CONDITION and RESULTS OF OPERATIONS, continued

Sources and Use of Cash

We derive the majority of our operating cash inflow from receipts on the sale of goods and services and cash outflow for the procurement of materials and labor; cash flow is therefore subject to market fluctuations and conditions. Most of our long-term contracts allow for several billing points (progress or milestone) that provide us with cash receipts as costs are incurred throughout the project rather than upon contract completion, thereby reducing working capital requirements. In some cases, these payments can exceed the costs incurred on a project. Management continually evaluates cash utilization alternatives, including share repurchases, acquisitions, increased dividends, and paying down debt, to determine the most beneficial use of available capital resources. We believe that our cash and cash equivalents, cash flow from operations, available borrowings under the credit facility, and ability to raise additional capital through the credit markets, are sufficient to meet both the short-term and long-term capital needs of the organization.

Condensed Consolidated Statements of Cash Flows
(In thousands)	June 30, 2017			June 30, 2016
Cash provided by (used):
Operating activities	$	60,932		$	156,631
Investing activities	(255,569		)	(15,784		)
Financing activities	(27,021		)	(41,891		)
Effect of exchange-rate changes on cash	10,521			(4,502		)
Net increase (decrease) in cash and cash equivalents	(211,137		)	94,454

Net cash provided by operating activitiesdecreased$96 million from the prior year period.  The decrease in net cash provided is primarily due to prior period net collections of $83 million related to the AP1000 program and a one-time prior period benefit of $20 million as a result of the interest rate swap termination.

Net cash used for investing activities increased$240 million from the comparable prior year period primarily due to current year acquisitions. The Corporation acquired two businesses during the six months ended June 30, 2017 for approximately $233 million, net of cash acquired. The Corporation did not acquire any businesses during the six months ended June 30, 2016. The capital expenditures for the six months ended June 30, 2017 and June 30, 2016 were $23 million and $16 million, respectively.

Financing Activities

Debt

The Corporation’s debt outstanding had an average interest rate of 4.0% for both the three and six months ended June 30, 2017 as compared to an average interest rates of 4.0% and 3.9% for the comparable periods ended June 30, 2016. The Corporation’s average debt outstanding was $950 million for both the three and six months ended June 30, 2017 and June 30, 2016, respectively.

Revolving Credit Agreement

As of June 30, 2017, the Corporation had no outstanding borrowings under the 2012 Senior Unsecured Revolving Credit Agreement (the “Credit Agreement” or “credit facility”) and $49 million in letters of credit supported by the credit facility. The unused credit available under the Credit Agreement as of June 30, 2017 was $451 million, which could be borrowed without violating any of our debt covenants.

Repurchase of common stock

During the six months ended June 30, 2017, the Corporation used $26 million of cash to repurchase approximately 284,000 outstanding shares under its share repurchase program. During the six months ended June 30, 2016, the Corporation used $55 million of cash to repurchase approximately 745,000 outstanding shares.

Page 28

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

PART I - ITEM 2

MANAGEMENT’S DISCUSSION and ANALYSIS of

FINANCIAL CONDITION and RESULTS OF OPERATIONS, continued

Dividends

The Corporation made dividend payments of $6 million during each of the six months ended June 30, 2017 and June 30, 2016, respectively.

Debt Compliance

As of the date of this report, we were in compliance with all debt agreements and credit facility covenants, including our most restrictive covenant, which is our debt to capitalization limit of 60%. The debt to capitalization limit is a measure of our indebtedness (as defined per the notes purchase agreement and credit facility) to capitalization, where capitalization equals debt plus equity, and is the same for and applies to all of our debt agreements and credit facility.

As of June 30, 2017, we had the ability to borrow additional debt of $986 million without violating our debt to capitalization covenant.

CRITICAL ACCOUNTING POLICIES

Our condensed consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America. Preparation of these statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. These estimates and assumptions are affected by the application of our accounting policies. Critical accounting policies are those that require application of management’s most difficult, subjective, or complex judgments, often as a result of the need to make estimates about the effects of matters that are inherently uncertain and may change in subsequent periods. A summary of significant accounting policies and a description of accounting policies that are considered critical may be found in our 2016 Annual Report on Form 10-K, filed with the U.S. Securities and Exchange Commission on February 21, 2017, in the Notes to the

Consolidated Financial Statements, Note 1, and the Critical Accounting Policies section of Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Page 29

CURTISS WRIGHT CORPORATION and SUBSIDIARIES

Item 3.                      QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There has been no material changes in our market risk during the six months ended June 30, 2017.  Information regarding market risk and market risk management policies is more fully described in item “7A.Quantitative and Qualitative Disclosures about Market Risk” of our 2016 Annual Report on Form 10-K.

Item 4.                      CONTROLS AND PROCEDURES

As of June 30, 2017, our management, including our Chief Executive Officer and Chief Financial Officer, conducted an evaluation of our disclosure controls and procedures, as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Based on such evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effective as of June 30, 2017 insofar as they are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms, and they include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports we file or submit under the Exchange Act is accumulated and communicated to our management, including our principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

During the quarter ended June 30, 2017, we implemented new controls as part of our efforts to adopt the new revenue recognition standard. Those efforts resulted in changes to our accounting processes and procedures related to monitoring the adoption process. As we continue the implementation process, we expect that there will be additional changes in our internal control over financial reporting. However, there have been no other changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended June 30, 2017 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Page 30

PART II - OTHER INFORMATION

Item 1.                     LEGAL PROCEEDINGS

In the ordinary course of business, we and our subsidiaries are subject to various pending claims, lawsuits, and contingent liabilities. We do not believe that the disposition of any of these matters, individually or in the aggregate, will have a material effect on our consolidated financial position or results of operations.

In December 2013, the Corporation, along with other unaffiliated parties, received a claim from Canadian Natural Resources Limited (CNRL) filed in the Court of Queen’s Bench of Alberta, Judicial District of Calgary. The claim pertains to a January 2011 fire and explosion at a delayed coker unit at its Fort McMurray refinery that resulted in the injury of five CNRL employees, damage to property and equipment, and various forms of consequential loss such as loss of profit, lost opportunities, and business interruption. The fire and explosion occurred when a CNRL employee bypassed certain safety controls and opened an operating coker unit. The total quantum of alleged damages arising from the incident has not been finalized, but is estimated to meet or exceed $1 billion. The Corporation maintains various forms of commercial, property and casualty, product liability, and other forms of insurance; however, such insurance may not be adequate to cover the costs associated with a judgment against us. The Corporation is currently unable to estimate an amount, or range of potential losses, if any, from this matter. The Corporation believes it has adequate legal defenses and intends to defend this matter vigorously. The Corporation’s financial condition, results of operations, and cash flows, could be materially affected during a future fiscal quarter or fiscal year by unfavorable developments or outcome regarding this claim.

We or our subsidiaries have been named in a number of lawsuits that allege injury from exposure to asbestos.  To date, neither we nor our subsidiaries have been found liable or paid any material sum of money in settlement in any case.  We believe that the minimal use of asbestos in our past operations and the relatively non-friable condition of asbestos in our products makes it unlikely that we will face material liability in any asbestos litigation, whether individually or in the aggregate.  We maintain insurance coverage for these potential liabilities and believe adequate coverage exists to cover any unanticipated asbestos liability.

On March 29, 2017, Westinghouse Electric Company (“WEC”) filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Southern District of New York, Case No. 17-10751.  The Bankruptcy Court overseeing the Bankruptcy Case has approved, on an interim basis, an $800 million Debtor-in-Possession Financing Facility to help WEC finance its business operations during the reorganization process. The Corporation has approximately $6.5 million in pre-petition billings outstanding with WEC as of June 30, 2017. The Corporation will continue, for the time being and while it monitors and evaluates the Bankruptcy Case, to honor its executory contracts and expects to collect all post-petition amounts due.  At this time, the Corporation has assessed that any pre-petition amounts will be substantially recoverable and does not believe that rejection of the outstanding contracts with WEC, taken in part or combined, would have a material adverse impact on the Company’s cash flow or operations.  The Corporation continues to monitor the status of the WEC bankruptcy as well as the status of the plant construction projects for potential impacts on our business.

Item 1A.          RISK FACTORS

There have been no material changes in our Risk Factors during the six months ended June 30, 2017. Information regarding our Risk Factors is more fully described in Item “1A. Risk Factors” of our 2016 Annual Report on Form 10-K.

Item 2.            UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

The following table provides information about our repurchase of equity securities that are registered by us pursuant to Section 12 of the Securities Exchange Act of 1934, as amended, during the quarter ended June 30, 2017.

Page 31

	Total Number of shares purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of a Publicly Announced Program	Maximum Dollar amount of shares that may yet be Purchased Under the Program
April 1 - April 30	41,200	$	90.43	173,922	$	33,389,558
May 1 - May 31	63,152	87.61		237,074	27,856,980
June 1 - June 30	47,200	91.33		284,274	23,546,308
For the quarter ended	151,552	$	89.53	284,274	$	23,546,308

On December 7, 2016, the Corporation authorized an additional $100 million for future share repurchases, raising total authorized and available capital for share repurchases to $200 million. The Corporation plans to repurchase at least $50 million in shares in 2017. Under the current program, shares may be purchased on the open market, in privately negotiated transactions, and under plans complying with Rules 10b5-1 and 10b-18 under the Securities Exchange Act of 1934, as amended.

Item 3.                      DEFAULTS UPON SENIOR SECURITIES

None.

Item 4.                      MINE SAFETY DISCLOSURES

Not applicable.

Page 32

Item 5.                      OTHER INFORMATION

There have been no material changes in our procedures by which our security holders may recommend nominees to our board of directors during the six months ended June 30, 2017.  Information regarding security holder recommendations and nominations for directors is more fully described in the section entitled “Stockholder Recommendations and Nominations for Director” of our 2017 Proxy Statement on Schedule 14A, which is incorporated by reference to our 2016 Annual Report on Form 10-K.

Page 33

Item 6.                      EXHIBITS

		Incorporated by Reference		Filed
Exhibit No.	Exhibit Description	Form	Filing Date	Herewith
3.1	Amended and Restated Certificate of Incorporation of the Registrant	8-A/A	May 24, 2005
3.2	Amended and Restated Bylaws of the Registrant	8-K	May 18, 2015
31.1	Certification of David C. Adams, Chairman and CEO, Pursuant to Rules 13a – 14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as amended			X
31.2	Certification of Glenn E. Tynan, Chief Financial Officer, Pursuant to Rules 13a – 14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as amended			X
32	Certification of David C. Adams, Chairman and CEO, and Glenn E. Tynan, Chief Financial Officer, Pursuant to 18 U.S.C. Section 1350			X
101.INS	XBRL Instance Document			X
101.SCH	XBRL Taxonomy Extension Schema Document			X
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document			X
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document			X
101.LAB	XBRL Taxonomy Extension Label Linkbase Document			X
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document			X

Page 34

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.

CURTISS-WRIGHT CORPORATION

(Registrant)

By:     /s/ Glenn E. Tynan

Glenn E. Tynan

Vice President of Finance and Chief Financial Officer

Dated: July 27, 2017

Page 35

EX-31.1

Exhibit 31.1

Certifications

I, David C. Adams, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Curtiss-Wright Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: July 27, 2017

/s/ David C. Adams

David C. Adams

Chairman and Chief Executive Officer

EX-31.2

Exhibit 31.2

Certifications

I, Glenn E. Tynan, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Curtiss-Wright Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: July 27, 2017

/s/ Glenn E. Tynan

Glenn E. Tynan

Vice President of Finance and Chief Financial Officer

EX-32

Exhibit 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

In connection with the Quarterly Report of Curtiss-Wright Corporation (the "Company") on Form 10-Q for the period ended June 30, 2017 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), David C. Adams, as Chairman and Chief Executive Officer of the Company, and Glenn E. Tynan, as Chief Financial Officer of the Company, each hereby certifies, pursuant to 18 U.S.C. section 1350, that to the best of his knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ David C. Adams

David C. Adams

Chairman and Chief Executive Officer

July 27, 2017

/s/ Glenn E. Tynan

Glenn E. Tynan

Vice President of Finance and Chief Financial Officer

July 27, 2017

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Document and Entity Information	6 Months Ended
	Jun. 30, 2017 shares
Document And Entity Information [Abstract]
Entity Registrant Name	Curtiss Wright Corporation
Entity Central Index Key	0000026324
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity common stock shares outstanding	44,137,906
Entity well known seasoned issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes

XML

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Net sales
Product sales	$ 459,774	$ 427,324	$ 883,003	$ 830,242
Service sales	107,879	105,442	208,241	206,031
Total net sales	567,653	532,766	1,091,244	1,036,273
Cost of sales
Cost of product sales	299,739	279,869	586,231	544,604
Cost of service sales	69,144	67,518	135,468	134,387
Total cost of sales	368,883	347,387	721,699	678,991
Gross profit	198,770	185,379	369,545	357,282
Research and development expenses	15,501	15,236	30,799	30,396
Selling expenses	28,560	29,126	57,513	58,752
General and administrative expenses	71,438	72,928	146,735	142,782
Operating income	83,271	68,089	134,498	125,352
Interest expense	(10,750)	(10,273)	(21,127)	(20,206)
Other income, net	190	101	502	335
Earnings from continuing operations before income taxes	72,711	57,917	113,873	105,481
Provision for income taxes	(22,061)	(17,954)	(30,676)	(32,699)
Net earnings	$ 50,650	$ 39,963	$ 83,197	$ 72,782
Basic earnings per share
Basic earnings per share (usd per share)	$ 1.15	$ 0.90	$ 1.88	$ 1.63
Diluted earnings per share
Diluted earnings per share (usd per share)	1.13	0.88	1.86	1.61
Dividends per share	$ 0.13	$ 0.13	$ 0.26	$ 0.26
Weighted average shares outstanding:
Basic (shares)	44,213	44,487	44,221	44,526
Diluted (shares)	44,807	45,164	44,825	45,195

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement of Comprehensive Income [Abstract]
Net earnings		$ 50,650	$ 39,963	$ 83,197	$ 72,782
Other comprehensive income
Foreign currency translation, net of tax	[1]	32,677	(31,646)	43,901	(14,541)
Pension and postretirement adjustments, net of tax	[2]	1,743	1,520	3,694	3,132
Other comprehensive income (loss), net of tax		34,420	(30,126)	47,595	(11,409)
Comprehensive income		$ 85,070	$ 9,837	$ 130,792	$ 61,373

[1] The tax expense included in other comprehensive income for foreign currency translation adjustments for the three and six months ended June 30, 2017 were $1.1 million and $1.2 million, respectively. The tax benefit included in other comprehensive loss for foreign currency translation adjustments for the three and six months ended June 30, 2016 were $1.3 million and $0.3 million, respectively.

[2] The tax expense included in other comprehensive income for pension and postretirement adjustments for the three and six months ended June 30, 2017 were $1.2 million and $2.5 million, respectively. The tax expense included in other comprehensive income for pension and postretirement adjustments for the three and six months ended June 30, 2016 were $1.1 million and $2.1 million, respectively.

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parentheticals) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement of Comprehensive Income [Abstract]
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax	$ 1.1	$ (1.3)	$ 1.2	$ (0.3)
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax, Attributable to Parent	$ 1.2	$ 1.1	$ 2.5	$ 2.1

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CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Current Assets:
Cash and cash equivalents	$ 342,711	$ 553,848
Receivables, net	502,216	463,062
Inventories, net	396,245	366,974
Other current assets	45,932	30,927
Total current assets	1,287,104	1,414,811
Property, plant, and equipment, net	390,520	388,903
Goodwill	1,082,944	951,057
Other intangible assets, net	345,991	271,461
Other assets	14,715	11,549
Total assets	3,121,274	3,037,781
Current liabilities:
Current portion of long-term debt and short-term debt	150,820	150,668
Accounts payable	157,088	177,911
Accrued expenses	116,492	130,239
Income taxes payable	10,578	18,274
Deferred revenue	183,955	170,143
Other current liabilities	34,858	28,027
Total current liabilities	653,791	675,262
Long-term debt	814,810	815,630
Deferred tax liabilities, net	55,675	49,722
Accrued pension and other postretirement benefit costs	103,181	107,151
Long-term portion of environmental reserves	16,091	14,024
Other liabilities	84,561	84,801
Total liabilities	1,728,109	1,746,590
Stockholders' Equity
Common stock, $1 par value,100,000,000 shares authorized at June 30, 2017 and December 31, 2016; 49,187,378 shares issued at June 30, 2017 and December 31, 2016; outstanding shares were 44,137,906 at June 30, 2017 and 44,181,050 at December 31, 2016	49,187	49,187
Additional paid in capital	122,584	129,483
Retained earnings	1,825,697	1,754,907
Accumulated other comprehensive loss	(244,161)	(291,756)
Common treasury stock, at cost (5,049,472 shares at June 30, 2017 and 5,006,328 shares at December 31, 2016)	(360,142)	(350,630)
Total stockholders' equity	1,393,165	1,291,191
Total liabilities and stockholders' equity	$ 3,121,274	$ 3,037,781

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Common stock, par value (usd per share)	$ 1	$ 1
Common Stock, Shares Authorized	100,000,000	100,000,000
Common Stock, Shares, Issued	49,187,378	49,187,378
Common Stock, Shares, Outstanding	44,137,906	44,181,050
Treasury Stock, Shares	5,049,472	5,006,328

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities:
Net earnings	$ 83,197	$ 72,782
Adjustments to reconcile net earnings to net cash provided by operating activities
Depreciation and amortization	49,961	48,987
Gain on fixed asset disposals	(197)	(28)
Deferred income taxes	(1,750)	14,127
Share-based compensation	6,016	4,985
Change in operating assets and liabilities, net of businesses acquired and divested:
Accounts receivable, net	(27,246)	85,281
Inventories, net	534	(14,527)
Progress payments	(1,316)	(345)
Accounts payable and accrued expenses	(48,229)	(65,856)
Deferred revenue	11,171	9,153
Income taxes payable	(13,217)	(25,412)
Net pension and postretirement liabilities	1,041	412
Other Operating Activities, Cash Flow Statement	0	20,405
Other current and long-term assets and liabilities	967	6,667
Net cash provided by operating activities	60,932	156,631
Cash flows from investing activities:
Proceeds from sales and disposals of long lived assets	349	244
Additions to property, plant, and equipment	(23,288)	(15,733)
Acquisition of businesses, net of cash acquired	(232,630)	(295)
Net cash used for investing activities	(255,569)	(15,784)
Cash flows from financing activities:
Borrowings under revolving credit facility	2,736	3,755
Payment of revolving credit facility	(2,584)	(3,901)
Repurchases of common stock	(26,454)	(54,958)
Proceeds from share-based compensation	5,374	13,098
Dividends paid	(5,757)	(5,797)
Excess tax benefits from share-based compensation plans	0	6,220
Proceeds from (Payments for) Other Financing Activities	(336)	(308)
Net cash used for financing activities	(27,021)	(41,891)
Effect of exchange-rate changes on cash	10,521	(4,502)
Net increase (decrease) in cash and cash equivalents	(211,137)	94,454
Cash and cash equivalents at beginning of period	553,848	288,697
Cash and cash equivalents at end of period	342,711	383,151
Supplemental disclosure of non-cash activities:
Capital expenditures incurred but not yet paid	$ 1,641	$ 775

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CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Common Stock Member	Additional Paid In Capital Member	Retained Earnings Member	Accumulated Other Comprehensive Loss Member	Treasury Stock Member
Beginning Balance at Dec. 31, 2015		$ 49,190	$ 144,923	$ 1,590,645	$ (225,928)	$ (303,407)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings				187,329
Other comprehensive loss, net of tax	$ (65,828)				(65,828)
Dividends paid/declared				(23,067)
Restricted stock			(12,086)			17,275
Stock options exercised			(11,271)			39,483
Other		3	(1,104)			811
Share-based compensation			9,021			457
Repurchases of common stock						(105,249)
Ending Balance at Dec. 31, 2016	1,291,191	49,187	129,483	1,754,907	(291,756)	(350,630)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	83,197			83,197
Other comprehensive loss, net of tax	47,595				47,595
Dividends paid/declared				(11,498)
Restricted stock			(9,618)			9,618
Stock options exercised			(851)			6,227
Other			(2,099)	(909)		750
Share-based compensation			5,669			347
Repurchases of common stock						(26,454)
Ending Balance at Jun. 30, 2017	$ 1,393,165	$ 49,187	$ 122,584	$ 1,825,697	$ (244,161)	$ (360,142)

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BASIS OF PRESENTATION

6 Months Ended

Jun. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BASIS OF PRESENTATION

BASIS OF PRESENTATION

Curtiss-Wright Corporation and its subsidiaries (the "Corporation" or the "Company") is a diversified multinational manufacturing and service company that designs, manufactures, and overhauls precision components and provides highly engineered products and services to the aerospace, defense, power generation, and general industrial markets.

The unaudited condensed consolidated financial statements include the accounts of Curtiss-Wright and its majority-owned subsidiaries. All intercompany transactions and accounts have been eliminated.

The unaudited condensed consolidated financial statements of the Corporation have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in annual financial statements have been condensed or omitted as permitted by such rules and regulations. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments necessary for a fair presentation of these financial statements.

Management is required to make estimates and judgments that affect the reported amount of assets, liabilities, revenue, and expenses and disclosure of contingent assets and liabilities in the accompanying financial statements. Actual results may differ from these estimates. The most significant of these estimates includes the estimate of costs to complete long-term contracts under the percentage-of-completion accounting methods, the estimate of useful lives for property, plant, and equipment, cash flow estimates used for testing the recoverability of assets, pension plan and postretirement obligation assumptions, estimates for inventory obsolescence, estimates for the valuation and useful lives of intangible assets, legal reserves, and the estimate of future environmental costs. Changes in estimates of contract sales, costs, and profits are recognized using the cumulative catch-up method of accounting. This method recognizes in the current period the cumulative effect of the changes on current and prior periods. Accordingly, the effect of the changes on future periods of contract performance is recognized as if the revised estimate had been the original estimate. During the three and six months ended June 30, 2017 and 2016, there were no individual significant changes in estimated contract costs. In the opinion of management, all adjustments considered necessary for a fair presentation have been reflected in these financial statements.

The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Corporation’s 2016 Annual Report on Form 10-K. The results of operations for interim periods are not necessarily indicative of trends or of the operating results for a full year.

Recent accounting pronouncements adopted

Standard	Description	Effect on the condensed consolidated financial statements
ASU 2017-04 Simplifying the Test for Goodwill Impairment	In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which simplifies the measurement of goodwill impairment testing by removing step two. This guidance was early adopted effective January 1, 2017 and will be applied prospectively.	The adoption of this standard does not have a financial impact on the Condensed Consolidated Financial Statements.
Date of adoption: January 1, 2017
ASU 2016-09 Improvements to Employee Share-Based Payment Accounting	In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes and forfeitures. Excess tax benefits previously reported as cash flows from financing activities in the Condensed Consolidated Financial Statements are now required to be reported as operating activities. The Company adopted this guidance effective January 1, 2017.	The Corporation recorded an income tax benefit of approximately $4 million within the provision for income taxes for the six months ended June 30, 2017 related to the excess tax benefit on stock options and performance share units. Prior to adoption, this amount would have been recorded as an increase to additional paid-in capital. The Corporation elected to account for forfeitures as they occur, which did not have a material impact on its Condensed Consolidated Financial Statements.
Date of adoption: January 1, 2017

Recent accounting pronouncements to be adopted

Standard	Description	Effect on the condensed consolidated financial statements
ASU 2014-09 Revenue from Contracts with Customers	In May 2014, the FASB issued a comprehensive new revenue recognition standard which will supersede previous existing revenue recognition guidance. The standard creates a five-step model for revenue recognition that requires companies to exercise judgment when considering contract terms and relevant facts and circumstances. The five-step model includes (1) identifying the contract, (2) identifying the separate performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations and (5) recognizing revenue when each performance obligation has been satisfied. The standard also requires expanded disclosures surrounding revenue recognition. The standard is effective for fiscal periods beginning after December 15, 2017 and allows for either full retrospective or modified retrospective adoption.	The Corporation plans to apply the modified retrospective approach upon adoption and is currently evaluating the impact of adoption on its Condensed Consolidated Financial Statements as of January 1, 2018. We have performed a preliminary review of our customer contracts; however, our assessment is still ongoing and not yet complete. It is expected that the disclosures in our Notes to the Condensed Consolidated Financial Statements related to revenue recognition will be expanded under the new standard. The Corporation will continue to monitor interpretative guidance issued by the FASB which may cause our evaluation to change.
Date of adoption: January 1, 2018
ASU 2016-02 Leases	In February 2016, the FASB issued final guidance that will require lessees to put most leases on their balance sheets but recognize expenses on their income statements in a manner similar to today’s accounting. The guidance requires the use of a modified retrospective approach.	The Corporation is currently evaluating the impact of the adoption of this standard on its Condensed Consolidated Financial Statements.
Date of adoption: January 1, 2019
ASU 2017-01 Clarifying the Definition of a Business	In January 2017, the FASB issued ASU 2017-01, which clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The standard introduces a screen for determining when assets acquired are not a business and clarifies that a business must include, at a minimum, an input and a substantive process that contribute to an output. The standard is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years.	The Corporation is currently evaluating the impact of the adoption of this standard on its Condensed Consolidated Financial Statements.
Date of adoption: January 1, 2018
ASU 2017-07 Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost	In March 2017, the FASB issued final guidance that will change how the net periodic benefit cost for defined benefit pension and other postretirement benefit plans are presented in the income statement and the respective capitalization of assets on the balance sheet. The guidance requires the use of a retrospective approach for the presentation of the income statement and a prospective approach for the presentation of the balance sheet.	The Corporation is currently evaluating the impact of the adoption of this standard on its Condensed Consolidated Financial Statements.
Date of adoption: January 1, 2018

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ACQUISITIONS

6 Months Ended

Jun. 30, 2017

Business Combinations [Abstract]

ACQUISITIONS

2.           ACQUISITIONS

The Corporation continually evaluates potential acquisitions that either strategically fit within the Corporation’s existing portfolio or expand the Corporation’s portfolio into new product lines or adjacent markets.  The Corporation has completed a number of acquisitions that have been accounted for as business combinations and have resulted in the recognition of goodwill in the Corporation's financial statements.  This goodwill arises because the purchase prices for these businesses reflect the future earnings and cash flow potential in excess of the earnings and cash flows attributable to the current product and customer set at the time of acquisition.  Thus, goodwill inherently includes the know-how of the assembled workforce, the ability of the workforce to further improve the technology and product offerings, and the expected cash flows resulting from these efforts. Goodwill may also include expected synergies resulting from the complementary strategic fit these businesses bring to existing operations.

The Corporation allocates the purchase price at the date of acquisition based upon its understanding of the fair value of the acquired assets and assumed liabilities. In the months after closing, as the Corporation obtains additional information about these assets and liabilities, including through tangible and intangible asset appraisals, and as the Corporation learns more about the newly acquired business, it is able to refine the estimates of fair value and more accurately allocate the purchase price. Only items identified as of the acquisition date are considered for subsequent adjustment.  The Corporation will make appropriate adjustments to the purchase price allocation prior to completion of the measurement period, as required.

During the six months ended June 30, 2017, the Corporation acquired two businesses for an aggregate purchase price of $233 million, which are described in more detail below. No acquisitions were made during the six months ended June 30, 2016.

The Condensed Consolidated Statement of Earnings includes $25 million of total net sales and $4 million of net losses from the Corporation's 2017 acquisitions.

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition for all acquisitions consummated during the six months ended June 30, 2017.

(In thousands)	2017			2016
Accounts receivable	$	5,020		$	—
Inventory	22,702			—
Property, plant, and equipment	4,598			—
Other current and non-current assets	2,815			—
Intangible assets	88,900			—
Current and non-current liabilities	(7,163		)	—
Due to seller, net	(509		)	—
Net tangible and intangible assets	116,363			—
Purchase price, net of cash acquired	232,630			—
Goodwill	$	116,267		$	—
Goodwill deductible for tax purposes	$	116,267		$	—

2017 Acquisitions

Teletronics Technology Corporation (TTC)

On January 3, 2017, the Corporation acquired 100% of the issued and outstanding capital stock of TTC for $226.0 million, net of cash acquired. The Share Purchase Agreement contains a purchase price adjustment mechanism and representations and warranties customary for a transaction of this type, including a portion of the purchase price deposited in escrow as security for potential indemnification claims against the seller. TTC is a designer and manufacturer of high-technology data acquisition and comprehensive flight test instrumentation systems for critical aerospace and defense applications. For the year ended December 31, 2016, TTC generated sales of $64 million.The acquired business operates within the Defense segment. The acquisition is subject to post-closing adjustments as the purchase price allocation is not yet complete.

Para Tech Coating, Inc. (Para Tech)

On February 8, 2017, the Corporation acquired certain assets and assumed certain liabilities of Para Tech for $6.6 million in cash. The Asset Purchase Agreement contains a purchase price adjustment mechanism and representations and warranties customary for a transaction of this type, including a portion of the purchase price held back as security for potential indemnification claims against the seller. Para Tech is a provider of parylene conformal coating services for aerospace & defense electronic components as well as critical medical devices. The acquired business operates within the Commercial/Industrial segment. The acquisition is subject to post-closing adjustments as the purchase price allocation is not yet complete.

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RECEIVABLES

6 Months Ended

Jun. 30, 2017

Receivables [Abstract]

RECEIVABLES

RECEIVABLES

Receivables primarily include amounts billed to customers, unbilled charges on long-term contracts consisting of amounts recognized as sales but not billed, and other receivables.  Substantially all amounts of unbilled receivables are expected to be billed and collected within one year. An immaterial amount of unbilled receivables are subject to retainage provisions. The amount of claims and unapproved change orders within our receivables balances are immaterial.

The composition of receivables is as follows:

(In thousands)	June 30, 2017			December 31, 2016
Billed receivables:
Trade and other receivables	$	374,691		$	340,091
Less: Allowance for doubtful accounts	(7,219		)	(4,832		)
Net billed receivables	367,472			335,259
Unbilled receivables:
Recoverable costs and estimated earnings not billed	158,006			149,847
Less: Progress payments applied	(23,262		)	(22,044		)
Net unbilled receivables	134,744			127,803
Receivables, net	$	502,216		$	463,062

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INVENTORIES

6 Months Ended

Jun. 30, 2017

Inventory, Net [Abstract]

INVENTORIES

    INVENTORIES

Inventoried costs contain amounts relating to long-term contracts and programs with long production cycles, a portion of which will not be realized within one year. Long-term contract inventory includes an immaterial amount of claims or other similar items subject to uncertainty concerning their determination or realization. Inventories are valued at the lower of cost or market.

The composition of inventories is as follows:

(In thousands)	June 30, 2017			December 31, 2016
Raw materials	$	195,461		$	189,228
Work-in-process	85,321			73,843
Finished goods	123,362			112,478
Inventoried costs related to U.S. Government and other long-term contracts	60,008			57,516
Gross inventories	464,152			433,065
Less:  Inventory reserves	(58,108		)	(54,988		)
Progress payments applied, principally related to long-term contracts	(9,799		)	(11,103		)
Inventories, net	$	396,245		$	366,974

Inventoried costs related to long-term contracts include capitalized contract development costs related to certain aerospace and defense programs of $29.9 million and $28.8 million, as of June 30, 2017 and December 31, 2016, respectively. These capitalized costs will be liquidated as production units are delivered to the customers.  As of June 30, 2017 and December 31, 2016, $4.6 million and $3.9 million, respectively, are scheduled to be liquidated under existing firm orders.

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GOODWILL

6 Months Ended

Jun. 30, 2017

Goodwill [Abstract]

GOODWILL

GOODWILL

The changes in the carrying amount of goodwill for the six months endedJune 30, 2017 are as follows:

(In thousands)	Commercial/Industrial		Defense		Power		Consolidated
December 31, 2016	$	436,141	$	327,655	$	187,261	$	951,057
Acquisitions	2,420		113,847		—		116,267
Foreign currency translation adjustment	6,468		9,044		108		15,620
June 30, 2017	$	445,029	$	450,546	$	187,369	$	1,082,944

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OTHER INTANGIBLE ASSETS, NET

6 Months Ended

Jun. 30, 2017

Intangible Assets, Net (Excluding Goodwill) [Abstract]

OTHER INTANGIBLE ASSETS, NET

OTHER INTANGIBLE ASSETS, NET

The following tables present the cumulative composition of the Corporation’s intangible assets:

	June 30, 2017							December 31, 2016
(In thousands)	Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net
Technology	$	240,858	$	(105,400	)	$	135,458	$	166,859	$	(98,266	)	$	68,593
Customer related intangibles	363,500		(168,351		)	195,149		349,742		(157,154		)	192,588
Other intangible assets	40,250		(24,866		)	15,384		36,709		(26,429		)	10,280
Total	$	644,608	$	(298,617	)	$	345,991	$	553,310	$	(281,849	)	$	271,461

During the six months ended June 30, 2017, the Corporation acquired intangible assets of $88.9 million. The Corporation acquired Technology of $73.0 million, Customer related intangibles of $12.9 million, and Other intangible assets of $3.0 million, which have a weighted average amortization period of 15.0 years, 16.3 years, and 7.0 years, respectively.

Total intangible amortization expense for the six months endedJune 30, 2017 was $19.1 million as compared to $16.8 million in the prior year period.  The estimated amortization expense for the five years ending December 31, 2017 through 2021 is $38.7 million, $37.7 million, $36.0 million, $34.1 million, and $32.3 million, respectively.

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FAIR VALUE OF FINANCIAL INSTRUMENTS

6 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

FAIR VALUE OF FINANCIAL INSTRUMENTS

FAIR VALUE OF FINANCIAL INSTRUMENTS

Forward Foreign Exchange and Currency Option Contracts

The Corporation has foreign currency exposure primarily in the United Kingdom, Europe, and Canada.  The Corporation uses financial instruments, such as forward and option contracts, to hedge a portion of existing and anticipated foreign currency denominated transactions.  The purpose of the Corporation’s foreign currency risk management program is to reduce volatility in earnings caused by exchange rate fluctuations.  Guidance on accounting for derivative instruments and hedging activities requires companies to recognize all of the derivative financial instruments as either assets or liabilities at fair value in the Condensed Consolidated Balance Sheets based upon quoted market prices for comparable instruments.

Interest Rate Risks and Related Strategies

The Corporation’s primary interest rate exposure results from changes in U.S. dollar interest rates. The Corporation’s policy is to manage interest cost using a mix of fixed and variable rate debt. The Corporation periodically uses interest rate swaps to manage such exposures. Under these interest rate swaps, the Corporation exchanges, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to an agreed-upon notional principal amount. The Corporation’s foreign exchange contracts and interest rate swaps are considered Level 2 instruments which are based on market based inputs or unobservable inputs and corroborated by market data such as quoted prices, interest rates, or yield curves.

Effects on Consolidated Balance Sheets

As of June 30, 2017 and December 31, 2016, the fair values of the asset and liability derivative instruments are immaterial.

Effects on Condensed Consolidated Statements of Earnings

Undesignated hedges

The location and amount of losses or (gains) recognized in income on forward exchange derivative contracts not designated for hedge accounting for the three and six months ended June 30, were as follows:

	Three Months Ended					Six Months Ended
(In thousands)	June 30,					June 30,
Derivatives not designated as hedging instrument	2017			2016		2017		2016
Forward exchange contracts:
General and administrative expenses	$	(93	)	$	4,452	$	614	$	5,036

Debt

The estimated fair value amounts were determined by the Corporation using available market information that is primarily based on quoted market prices for the same or similar issues as of June 30, 2017.  Accordingly, all of the Corporation’s debt is valued at a Level 2.  The fair values described below may not be indicative of net realizable value or reflective of future fair values.  Furthermore, the use of different methodologies to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.

	June 30, 2017						December 31, 2016
(In thousands)	Carrying Value			Estimated Fair Value			Carrying Value			Estimated Fair Value
5.51% Senior notes due 2017	150,000			152,161			150,000			154,509
3.84% Senior notes due 2021	100,000			104,107			100,000			102,463
3.70% Senior notes due 2023	225,000			232,173			225,000			226,946
3.85% Senior notes due 2025	100,000			103,389			100,000			100,338
4.24% Senior notes due 2026	200,000			211,038			200,000			203,592
4.05% Senior notes due 2028	75,000			77,685			75,000			74,630
4.11% Senior notes due 2028	100,000			104,158			100,000			99,876
Other debt	820			820			668			668
Total debt	950,820			985,531			950,668			963,022
Debt issuance costs, net	(907		)	(907		)	(984		)	(984		)
Unamortized interest rate swap proceeds	15,717			15,717			16,614			16,614
Total debt, net	$	965,630		$	1,000,341		$	966,298		$	978,652

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PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS

6 Months Ended

Jun. 30, 2017

Retirement Benefits, Description [Abstract]

PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS

PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS

The following tables are consolidated disclosures of all domestic and foreign defined pension plans as described in the Corporation’s 2016 Annual Report on Form 10-K.  

Pension Plans

The components of net periodic pension cost for the three and six months ended June 30, 2017 and 2016 were as follows:

	Three Months Ended						Six Months Ended
(In thousands)	June 30,						June 30,
	2017			2016			2017			2016
Service cost	$	6,474		$	6,248		$	12,945		$	12,485
Interest cost	6,236			7,709			12,455			15,412
Expected return on plan assets	(13,310		)	(13,590		)	(26,595		)	(27,171		)
Amortization of prior service cost	(26		)	(11		)	(51		)	(23		)
Amortization of unrecognized actuarial loss	3,585			3,093			7,166			6,186
Net periodic benefit cost	$	2,959		$	3,449		$	5,920		$	6,889

During the six months ended June 30, 2017, the Corporation made no contributions to the Curtiss-Wright Pension Plan, and does not expect to make any contributions in 2017. Contributions to the foreign benefit plans are not expected to be material in 2017.

Defined Contribution Retirement Plan

Effective January 1, 2014, all non-union employees who are not currently receiving final or career average pay benefits became eligible to receive employer contributions in the Corporation’s sponsored 401(k) plan. The employer contributions include both employer match and non-elective contribution components, up to a maximum employer contribution of 6% of eligible compensation. During the six months endedJune 30, 2017 and 2016, the expense relating to the plan was $6.8 million and $6.0 million, respectively. The Corporation made $9.4 million in contributions to the plan during the six months ended June 30, 2017, and expects to make total contributions of $11.8 million in 2017.

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EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2017

Earnings Per Share [Abstract]

EARNINGS PER SHARE

EARNINGS PER SHARE

Diluted earnings per share were computed based on the weighted-average number of shares outstanding plus all potentially dilutive common shares.  A reconciliation of basic to diluted shares used in the earnings per share calculation is as follows:

	Three Months Ended		Six Months Ended
(In thousands)	June 30,		June 30,
	2017	2016	2017	2016
Basic weighted-average shares outstanding	44,213	44,487	44,221	44,526
Dilutive effect of stock options and deferred stock compensation	594	677	604	669
Diluted weighted-average shares outstanding	44,807	45,164	44,825	45,195

For the three months and six months ended June 30, 2017, approximately 38,000 shares issuable under equity-based awards were excluded from the calculation of diluted earnings per share as they were anti-dilutive based on the average stock price during the period. For the three and six months ended June 30, 2016, there were no anti-dilutive equity-based awards.

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SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

The Corporation manages and evaluates its operations based on end markets to strengthen its ability to service customers and recognize certain organizational efficiencies. Based on this approach, the Corporation has three reportable segments: Commercial/Industrial, Defense, and Power.

The Corporation’s measure of segment profit or loss is operating income. Interest expense and income taxes are not reported on an operating segment basis as they are not considered in the segments’ performance evaluation by the Corporation’s chief operating decision-maker, its Chief Executive Officer.

Net sales and operating income by reportable segment were as follows:

	Three Months Ended						Six Months Ended
(In thousands)	June 30,						June 30,
	2017			2016			2017			2016
Net sales
Commercial/Industrial	$	291,856		$	290,428		$	570,912		$	565,633
Defense	127,399			114,877			242,236			220,607
Power	149,970			129,123			280,565			252,869
Less: Intersegment revenues	(1,572		)	(1,662		)	(2,469		)	(2,836		)
Total consolidated	$	567,653		$	532,766		$	1,091,244		$	1,036,273
Operating income (expense)
Commercial/Industrial	$	43,693		$	38,957		$	74,314		$	69,009
Defense	21,187			18,609			32,342			35,454
Power	24,870			16,114			41,410			30,742
Corporate and eliminations (1)	(6,479		)	(5,591		)	(13,568		)	(9,853		)
Total consolidated	$	83,271		$	68,089		$	134,498		$	125,352

⁽¹⁾ Corporate and eliminations includes pension and other postretirement benefit expense, certain environmental costs related to remediation at legacy sites, foreign currency transactional gains and losses, and certain other expenses.

Adjustments to reconcile operating income to earnings before income taxes are as follows:

	Three Months Ended				Six Months Ended
(In thousands)	June 30,				June 30,
	2017		2016		2017		2016
Total operating income	$	83,271	$	68,089	$	134,498	$	125,352
Interest expense	10,750		10,273		21,127		20,206
Other income, net	190		101		502		335
Earnings before income taxes	$	72,711	$	57,917	$	113,873	$	105,481

(In thousands)	June 30, 2017		December 31, 2016
Identifiable assets
Commercial/Industrial	$	1,420,411	$	1,391,040
Defense	1,013,636		751,859
Power	517,053		516,321
Corporate and Other	170,174		378,561
Total consolidated	$	3,121,274	$	3,037,781

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

6 Months Ended

Jun. 30, 2017

Stockholders' Equity Note [Abstract]

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The cumulative balance of each component of accumulated other comprehensive income (AOCI), net of tax, is as follows:

(In thousands)	Foreign currency translation adjustments, net			Total pension and postretirement adjustments, net			Accumulated other comprehensive income (loss)
December 31, 2015	$	(107,810	)	$	(118,118	)	$	(225,928	)
Other comprehensive income (loss) before reclassifications (1)	(64,840		)	(7,892		)	(72,732		)
Amounts reclassified from accumulated other comprehensive loss (1)	—			6,904			6,904
Net current period other comprehensive loss	(64,840		)	(988		)	(65,828		)
December 31, 2016	$	(172,650	)	$	(119,106	)	$	(291,756	)
Other comprehensive income (loss) before reclassifications (1)	43,901			(507		)	43,394
Amounts reclassified from accumulated other comprehensive income (loss) (1)	—			4,201			4,201
Net current period other comprehensive income	43,901			3,694			47,595
June 30, 2017	$	(128,749	)	$	(115,412	)	$	(244,161	)

(1) All amounts are after tax.

Details of amounts reclassified from accumulated other comprehensive income (loss) are below:

(In thousands)	Amount reclassified from AOCI			Affected line item in the statement where net earnings is presented
Defined benefit pension and other postretirement benefit plans
Amortization of prior service costs	379			(1)
Amortization of actuarial losses	(7,064		)	(1)
	(6,685		)	Total before tax
	2,484			Income tax
Total reclassifications	$	(4,201	)	Net of tax

(1) These items are included in the computation of net periodic benefit cost.  See Note 8, Pension and Other Postretirement Benefit Plans.

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CONTINGENCIES AND COMMITMENTS

6 Months Ended

Jun. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

CONTINGENCIES AND COMMITMENTS

CONTINGENCIES AND COMMITMENTS

Legal Proceedings

The Corporation has been named in a number of lawsuits that allege injury from exposure to asbestos.  To date, the Corporation has not been found liable for or paid any material sum of money in settlement in any case.  The Corporation believes its minimal use of asbestos in its past operations and the relatively non-friable condition of asbestos in its products makes it unlikely that it will face material liability in any asbestos litigation, whether individually or in the aggregate.  The Corporation maintains insurance coverage for these potential liabilities and believes adequate coverage exists to cover any unanticipated asbestos liability.

In December 2013, the Corporation, along with other unaffiliated parties, received a claim from Canadian Natural Resources Limited (CNRL) filed in the Court of Queen’s Bench of Alberta, Judicial District of Calgary. The claim pertains to a January 2011 fire and explosion at a delayed coker unit at its Fort McMurray refinery that resulted in the injury of five CNRL employees, damage to property and equipment, and various forms of consequential loss, such as loss of profit, lost opportunities, and business interruption. The fire and explosion occurred when a CNRL employee bypassed certain safety controls and opened an operating coker unit. The total quantum of alleged damages arising from the incident has not been finalized, but is estimated to meet or exceed $1 billion.  The Corporation maintains various forms of commercial, property and casualty, product liability, and other forms of insurance; however, such insurance may not be adequate to cover the costs associated with a judgment against us. The Corporation is currently unable to estimate an amount, or range of potential losses, if any, from this matter. The Corporation believes it has adequate legal defenses and intends to defend this matter vigorously. The Corporation’s financial condition, results of operations, and cash flows, could be materially affected during a future fiscal quarter or fiscal year by unfavorable developments or outcome regarding this claim.

In addition to the CNRL litigation, the Corporation is party to a number of other legal actions and claims, none of which individually or in the aggregate, in the opinion of management, are expected to have a material effect on the Corporation’s results of operations or financial position.

Westinghouse Bankruptcy

On March 29, 2017, Westinghouse Electric Company (“WEC”) filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Southern District of New York, Case No. 17-10751.  The Bankruptcy Court overseeing the Bankruptcy Case has approved, on an interim basis, an $800 million Debtor-in-Possession Financing Facility to help WEC finance its business operations during the reorganization process. The Corporation had approximately $6.5 million in pre-petition billings outstanding with WEC as of June 30, 2017. The Corporation will continue, for the time being and while it monitors and evaluates the Bankruptcy Case, to honor its executory contracts and expects to collect all post-petition amounts due.  At this time, the Corporation has assessed that any pre-petition amounts will be substantially recoverable and does not believe that rejection of the outstanding contracts with WEC, taken in part or combined, would have a material adverse impact on the Company’s cash flow or operations.  The Corporation continues to monitor the status of the WEC bankruptcy as well as the status of the plant construction projects for potential impacts on our business.

Letters of Credit and Other Financial Arrangements

The Corporation enters into standby letters of credit agreements and guarantees with financial institutions and customers primarily relating to guarantees of repayment, future performance on certain contracts to provide products and services, and to secure advance payments from certain international customers. As of June 30, 2017 and December 31, 2016, there were $48.8 million and $47.2 million of stand-by letters of credit outstanding, respectively, and $13.9 million and $12.8 million of bank guarantees outstanding, respectively. In addition, the Corporation is required to provide the Nuclear Regulatory Commission financial assurance demonstrating its ability to cover the cost of decommissioning its Cheswick, Pennsylvania facility upon closure, though the Corporation does not intend to close this facility.  The Corporation has provided this financial assurance in the form of a $56.0 million surety bond.

AP1000 Program

The Electro-Mechanical Division, which is within the Corporation’s Power segment, is the reactor coolant pump (RCP) supplier for the Westinghouse AP1000 nuclear power plants under construction in China and the United States.  The terms of the AP1000 China and United States contracts include liquidated damage penalty provisions for failure to meet contractual delivery dates if the Corporation caused the delay and the delay was not excusable. On October 10, 2013, the Corporation received a letter from Westinghouse stating entitlements to the maximum amount of liquidated damages allowable under the AP1000 China contract from Westinghouse of approximately $25 million. The Corporation would be liable for liquidated damages under the contract if certain contractual delivery dates were not met and if the Corporation was deemed responsible for the delay. As of June 30, 2017, the Corporation has not met certain contractual delivery dates under its AP 1000 China and US contracts; however there are significant uncertainties as to which parties are responsible for the delays. The Corporation believes it has adequate legal defenses and intends to vigorously defend this matter. Given the uncertainties surrounding the responsibility for the delays, no accrual has been made for this matter as of June 30, 2017.  As of June 30, 2017, the range of possible loss is $0 to $31 million for the AP1000 US contract, for a total range of possible loss of $0 to $55.5 million.

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SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2017

Subsequent Events [Abstract]

Subsequent Events [Text Block]

On July 20, 2017, the Board of Directors unanimously authorized a $0.02, or 15%, increase in the Corporation’s quarterly dividend to $0.15 per share. The increase will be reflected in the Corporation’s third quarter distribution, to be paid in October 2017.

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BASIS OF PRESENTATION (Policies)

6 Months Ended

Jun. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis Of Accounting

Curtiss-Wright Corporation and its subsidiaries (the "Corporation" or the "Company") is a diversified multinational manufacturing and service company that designs, manufactures, and overhauls precision components and provides highly engineered products and services to the aerospace, defense, power generation, and general industrial markets.

The unaudited condensed consolidated financial statements include the accounts of Curtiss-Wright and its majority-owned subsidiaries. All intercompany transactions and accounts have been eliminated.

The unaudited condensed consolidated financial statements of the Corporation have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in annual financial statements have been condensed or omitted as permitted by such rules and regulations. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments necessary for a fair presentation of these financial statements.

Management is required to make estimates and judgments that affect the reported amount of assets, liabilities, revenue, and expenses and disclosure of contingent assets and liabilities in the accompanying financial statements. Actual results may differ from these estimates. The most significant of these estimates includes the estimate of costs to complete long-term contracts under the percentage-of-completion accounting methods, the estimate of useful lives for property, plant, and equipment, cash flow estimates used for testing the recoverability of assets, pension plan and postretirement obligation assumptions, estimates for inventory obsolescence, estimates for the valuation and useful lives of intangible assets, legal reserves, and the estimate of future environmental costs. Changes in estimates of contract sales, costs, and profits are recognized using the cumulative catch-up method of accounting. This method recognizes in the current period the cumulative effect of the changes on current and prior periods. Accordingly, the effect of the changes on future periods of contract performance is recognized as if the revised estimate had been the original estimate. During the three and six months ended June 30, 2017 and 2016, there were no individual significant changes in estimated contract costs. In the opinion of management, all adjustments considered necessary for a fair presentation have been reflected in these financial statements.

The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Corporation’s 2016 Annual Report on Form 10-K. The results of operations for interim periods are not necessarily indicative of trends or of the operating results for a full year.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent accounting pronouncements adopted

Standard	Description	Effect on the condensed consolidated financial statements
ASU 2017-04 Simplifying the Test for Goodwill Impairment	In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which simplifies the measurement of goodwill impairment testing by removing step two. This guidance was early adopted effective January 1, 2017 and will be applied prospectively.	The adoption of this standard does not have a financial impact on the Condensed Consolidated Financial Statements.
Date of adoption: January 1, 2017
ASU 2016-09 Improvements to Employee Share-Based Payment Accounting	In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes and forfeitures. Excess tax benefits previously reported as cash flows from financing activities in the Condensed Consolidated Financial Statements are now required to be reported as operating activities. The Company adopted this guidance effective January 1, 2017.	The Corporation recorded an income tax benefit of approximately $4 million within the provision for income taxes for the six months ended June 30, 2017 related to the excess tax benefit on stock options and performance share units. Prior to adoption, this amount would have been recorded as an increase to additional paid-in capital. The Corporation elected to account for forfeitures as they occur, which did not have a material impact on its Condensed Consolidated Financial Statements.
Date of adoption: January 1, 2017

Recent accounting pronouncements to be adopted

Standard	Description	Effect on the condensed consolidated financial statements
ASU 2014-09 Revenue from Contracts with Customers	In May 2014, the FASB issued a comprehensive new revenue recognition standard which will supersede previous existing revenue recognition guidance. The standard creates a five-step model for revenue recognition that requires companies to exercise judgment when considering contract terms and relevant facts and circumstances. The five-step model includes (1) identifying the contract, (2) identifying the separate performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations and (5) recognizing revenue when each performance obligation has been satisfied. The standard also requires expanded disclosures surrounding revenue recognition. The standard is effective for fiscal periods beginning after December 15, 2017 and allows for either full retrospective or modified retrospective adoption.	The Corporation plans to apply the modified retrospective approach upon adoption and is currently evaluating the impact of adoption on its Condensed Consolidated Financial Statements as of January 1, 2018. We have performed a preliminary review of our customer contracts; however, our assessment is still ongoing and not yet complete. It is expected that the disclosures in our Notes to the Condensed Consolidated Financial Statements related to revenue recognition will be expanded under the new standard. The Corporation will continue to monitor interpretative guidance issued by the FASB which may cause our evaluation to change.
Date of adoption: January 1, 2018
ASU 2016-02 Leases	In February 2016, the FASB issued final guidance that will require lessees to put most leases on their balance sheets but recognize expenses on their income statements in a manner similar to today’s accounting. The guidance requires the use of a modified retrospective approach.	The Corporation is currently evaluating the impact of the adoption of this standard on its Condensed Consolidated Financial Statements.
Date of adoption: January 1, 2019
ASU 2017-01 Clarifying the Definition of a Business	In January 2017, the FASB issued ASU 2017-01, which clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The standard introduces a screen for determining when assets acquired are not a business and clarifies that a business must include, at a minimum, an input and a substantive process that contribute to an output. The standard is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years.	The Corporation is currently evaluating the impact of the adoption of this standard on its Condensed Consolidated Financial Statements.
Date of adoption: January 1, 2018
ASU 2017-07 Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost	In March 2017, the FASB issued final guidance that will change how the net periodic benefit cost for defined benefit pension and other postretirement benefit plans are presented in the income statement and the respective capitalization of assets on the balance sheet. The guidance requires the use of a retrospective approach for the presentation of the income statement and a prospective approach for the presentation of the balance sheet.	The Corporation is currently evaluating the impact of the adoption of this standard on its Condensed Consolidated Financial Statements.
Date of adoption: January 1, 2018

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BASIS OF PRESENTATION Tables (Tables)

6 Months Ended

Jun. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block]

Recent accounting pronouncements adopted

Standard	Description	Effect on the condensed consolidated financial statements
ASU 2017-04 Simplifying the Test for Goodwill Impairment	In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which simplifies the measurement of goodwill impairment testing by removing step two. This guidance was early adopted effective January 1, 2017 and will be applied prospectively.	The adoption of this standard does not have a financial impact on the Condensed Consolidated Financial Statements.
Date of adoption: January 1, 2017
ASU 2016-09 Improvements to Employee Share-Based Payment Accounting	In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes and forfeitures. Excess tax benefits previously reported as cash flows from financing activities in the Condensed Consolidated Financial Statements are now required to be reported as operating activities. The Company adopted this guidance effective January 1, 2017.	The Corporation recorded an income tax benefit of approximately $4 million within the provision for income taxes for the six months ended June 30, 2017 related to the excess tax benefit on stock options and performance share units. Prior to adoption, this amount would have been recorded as an increase to additional paid-in capital. The Corporation elected to account for forfeitures as they occur, which did not have a material impact on its Condensed Consolidated Financial Statements.
Date of adoption: January 1, 2017

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ACQUISITIONS (Tables)

6 Months Ended

Jun. 30, 2017

Business Combinations [Abstract]

Schedule of Business Acquisitions, by Acquisition [Table Text Block]

(In thousands)	2017			2016
Accounts receivable	$	5,020		$	—
Inventory	22,702			—
Property, plant, and equipment	4,598			—
Other current and non-current assets	2,815			—
Intangible assets	88,900			—
Current and non-current liabilities	(7,163		)	—
Due to seller, net	(509		)	—
Net tangible and intangible assets	116,363			—
Purchase price, net of cash acquired	232,630			—
Goodwill	$	116,267		$	—
Goodwill deductible for tax purposes	$	116,267		$	—

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RECEIVABLES (Table)

6 Months Ended

Jun. 30, 2017

Receivables [Abstract]

Schedule Of Accounts Notes Loans And Financing Receivable

The composition of receivables is as follows:

(In thousands)	June 30, 2017			December 31, 2016
Billed receivables:
Trade and other receivables	$	374,691		$	340,091
Less: Allowance for doubtful accounts	(7,219		)	(4,832		)
Net billed receivables	367,472			335,259
Unbilled receivables:
Recoverable costs and estimated earnings not billed	158,006			149,847
Less: Progress payments applied	(23,262		)	(22,044		)
Net unbilled receivables	134,744			127,803
Receivables, net	$	502,216		$	463,062

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INVENTORIES (Table)

6 Months Ended

Jun. 30, 2017

Inventory, Net [Abstract]

Schedule Of Inventory

(In thousands)	June 30, 2017			December 31, 2016
Raw materials	$	195,461		$	189,228
Work-in-process	85,321			73,843
Finished goods	123,362			112,478
Inventoried costs related to U.S. Government and other long-term contracts	60,008			57,516
Gross inventories	464,152			433,065
Less:  Inventory reserves	(58,108		)	(54,988		)
Progress payments applied, principally related to long-term contracts	(9,799		)	(11,103		)
Inventories, net	$	396,245		$	366,974

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GOODWILL (Table)

6 Months Ended

Jun. 30, 2017

Goodwill [Abstract]

Schedule Of Goodwill

The changes in the carrying amount of goodwill for the six months endedJune 30, 2017 are as follows:

(In thousands)	Commercial/Industrial		Defense		Power		Consolidated
December 31, 2016	$	436,141	$	327,655	$	187,261	$	951,057
Acquisitions	2,420		113,847		—		116,267
Foreign currency translation adjustment	6,468		9,044		108		15,620
June 30, 2017	$	445,029	$	450,546	$	187,369	$	1,082,944

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OTHER INTANGIBLE ASSETS, NET (Table)

6 Months Ended

Jun. 30, 2017

Intangible Assets, Net (Excluding Goodwill) [Abstract]

Schedule Of Intangible Assets By Major Class

The following tables present the cumulative composition of the Corporation’s intangible assets:

	June 30, 2017							December 31, 2016
(In thousands)	Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net
Technology	$	240,858	$	(105,400	)	$	135,458	$	166,859	$	(98,266	)	$	68,593
Customer related intangibles	363,500		(168,351		)	195,149		349,742		(157,154		)	192,588
Other intangible assets	40,250		(24,866		)	15,384		36,709		(26,429		)	10,280
Total	$	644,608	$	(298,617	)	$	345,991	$	553,310	$	(281,849	)	$	271,461

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FAIR VALUE OF FINANCIAL INSTRUMENTS (Table)

6 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block]

Undesignated hedges

The location and amount of losses or (gains) recognized in income on forward exchange derivative contracts not designated for hedge accounting for the three and six months ended June 30, were as follows:

	Three Months Ended					Six Months Ended
(In thousands)	June 30,					June 30,
Derivatives not designated as hedging instrument	2017			2016		2017		2016
Forward exchange contracts:
General and administrative expenses	$	(93	)	$	4,452	$	614	$	5,036

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block]

	June 30, 2017						December 31, 2016
(In thousands)	Carrying Value			Estimated Fair Value			Carrying Value			Estimated Fair Value
5.51% Senior notes due 2017	150,000			152,161			150,000			154,509
3.84% Senior notes due 2021	100,000			104,107			100,000			102,463
3.70% Senior notes due 2023	225,000			232,173			225,000			226,946
3.85% Senior notes due 2025	100,000			103,389			100,000			100,338
4.24% Senior notes due 2026	200,000			211,038			200,000			203,592
4.05% Senior notes due 2028	75,000			77,685			75,000			74,630
4.11% Senior notes due 2028	100,000			104,158			100,000			99,876
Other debt	820			820			668			668
Total debt	950,820			985,531			950,668			963,022
Debt issuance costs, net	(907		)	(907		)	(984		)	(984		)
Unamortized interest rate swap proceeds	15,717			15,717			16,614			16,614
Total debt, net	$	965,630		$	1,000,341		$	966,298		$	978,652

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PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Table)

6 Months Ended

Jun. 30, 2017

Pension Plans Defined Benefit [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule Of Defined Benefit Plans Disclosures

The components of net periodic pension cost for the three and six months ended June 30, 2017 and 2016 were as follows:

	Three Months Ended						Six Months Ended
(In thousands)	June 30,						June 30,
	2017			2016			2017			2016
Service cost	$	6,474		$	6,248		$	12,945		$	12,485
Interest cost	6,236			7,709			12,455			15,412
Expected return on plan assets	(13,310		)	(13,590		)	(26,595		)	(27,171		)
Amortization of prior service cost	(26		)	(11		)	(51		)	(23		)
Amortization of unrecognized actuarial loss	3,585			3,093			7,166			6,186
Net periodic benefit cost	$	2,959		$	3,449		$	5,920		$	6,889

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EARNINGS PER SHARE (Table)

6 Months Ended

Jun. 30, 2017

Earnings Per Share [Abstract]

Schedule of Earnings Per Share Reconciliation

A reconciliation of basic to diluted shares used in the earnings per share calculation is as follows:

	Three Months Ended		Six Months Ended
(In thousands)	June 30,		June 30,
	2017	2016	2017	2016
Basic weighted-average shares outstanding	44,213	44,487	44,221	44,526
Dilutive effect of stock options and deferred stock compensation	594	677	604	669
Diluted weighted-average shares outstanding	44,807	45,164	44,825	45,195

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SEGMENT INFORMATION (Table)

6 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

Schedule Of Segment Reporting Information By Segment

	Three Months Ended						Six Months Ended
(In thousands)	June 30,						June 30,
	2017			2016			2017			2016
Net sales
Commercial/Industrial	$	291,856		$	290,428		$	570,912		$	565,633
Defense	127,399			114,877			242,236			220,607
Power	149,970			129,123			280,565			252,869
Less: Intersegment revenues	(1,572		)	(1,662		)	(2,469		)	(2,836		)
Total consolidated	$	567,653		$	532,766		$	1,091,244		$	1,036,273
Operating income (expense)
Commercial/Industrial	$	43,693		$	38,957		$	74,314		$	69,009
Defense	21,187			18,609			32,342			35,454
Power	24,870			16,114			41,410			30,742
Corporate and eliminations (1)	(6,479		)	(5,591		)	(13,568		)	(9,853		)
Total consolidated	$	83,271		$	68,089		$	134,498		$	125,352

⁽¹⁾ Corporate and eliminations includes pension and other postretirement benefit expense, certain environmental costs related to remediation at legacy sites, foreign currency transactional gains and losses, and certain other expenses.

Reconciliation of Operating Profit (Loss) from Segments to Consolidated

	Three Months Ended				Six Months Ended
(In thousands)	June 30,				June 30,
	2017		2016		2017		2016
Total operating income	$	83,271	$	68,089	$	134,498	$	125,352
Interest expense	10,750		10,273		21,127		20,206
Other income, net	190		101		502		335
Earnings before income taxes	$	72,711	$	57,917	$	113,873	$	105,481

Reconciliation Of Assets From Segment To Consolidated

(In thousands)	June 30, 2017		December 31, 2016
Identifiable assets
Commercial/Industrial	$	1,420,411	$	1,391,040
Defense	1,013,636		751,859
Power	517,053		516,321
Corporate and Other	170,174		378,561
Total consolidated	$	3,121,274	$	3,037,781

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Table)

6 Months Ended

Jun. 30, 2017

Stockholders' Equity Note [Abstract]

Schedule of Comprehensive Income (Loss)

The cumulative balance of each component of accumulated other comprehensive income (AOCI), net of tax, is as follows:

(In thousands)	Foreign currency translation adjustments, net			Total pension and postretirement adjustments, net			Accumulated other comprehensive income (loss)
December 31, 2015	$	(107,810	)	$	(118,118	)	$	(225,928	)
Other comprehensive income (loss) before reclassifications (1)	(64,840		)	(7,892		)	(72,732		)
Amounts reclassified from accumulated other comprehensive loss (1)	—			6,904			6,904
Net current period other comprehensive loss	(64,840		)	(988		)	(65,828		)
December 31, 2016	$	(172,650	)	$	(119,106	)	$	(291,756	)
Other comprehensive income (loss) before reclassifications (1)	43,901			(507		)	43,394
Amounts reclassified from accumulated other comprehensive income (loss) (1)	—			4,201			4,201
Net current period other comprehensive income	43,901			3,694			47,595
June 30, 2017	$	(128,749	)	$	(115,412	)	$	(244,161	)

(1) All amounts are after tax.

Reclassification out of Accumulated Other Comprehensive Income

Details of amounts reclassified from accumulated other comprehensive income (loss) are below:

(In thousands)	Amount reclassified from AOCI			Affected line item in the statement where net earnings is presented
Defined benefit pension and other postretirement benefit plans
Amortization of prior service costs	379			(1)
Amortization of actuarial losses	(7,064		)	(1)
	(6,685		)	Total before tax
	2,484			Income tax
Total reclassifications	$	(4,201	)	Net of tax

(1) These items are included in the computation of net periodic benefit cost.  See Note 8, Pension and Other Postretirement Benefit Plans.

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Reclassifications for Accounting Pronouncements (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Income Tax Expense (Benefit)	$ 22,061	$ 17,954	$ 30,676	$ 32,699
Accounting Standards Update 2016-09 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Income Tax Expense (Benefit)	$ 0		$ 4,057

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ACQUISITIONS (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Business Acquisition [Line Items]
Goodwill	$ 1,082,944	$ 951,057
2017 acquisitions [Member]
Business Acquisition [Line Items]
Accounts Receivable	5,020
Inventory	22,702
Property, Plant, and Equipment	4,598
Other Current and Non-current Assets	2,815
Intangible Assets, Other than Goodwill	88,900
Current and Non-current Liabilities	7,163
Due from Seller, Net	(509)
Net Tangible and Intangible Assets	116,363
Purchase Price, Net of Cash Acquired	232,630
Goodwill	116,267
Goodwill, Expected Tax Deductible Amount	$ 116,267

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ACQUISITIONS Narrative (Details) $ in Thousands			6 Months Ended
	Feb. 08, 2017	Jan. 03, 2017	Jun. 30, 2017 USD ($) NumberAcquisitions	Jun. 30, 2016 USD ($)
Business Acquisition [Line Items]
Number of Businesses Acquired | NumberAcquisitions			2
Payments to Acquire Businesses, Gross			$ 232,630	$ 295
Revenue of Acquiree since Acquisition Date, Actual			25,000
Earnings or Loss of Acquiree since Acquisition Date, Actual			(4,000)
2017 acquisitions [Member]
Business Acquisition [Line Items]
Purchase Price, Net of Cash Acquired			232,630
Defense [Member] | Teletronics Technology Corporation (TTC) [Member]
Business Acquisition [Line Items]
Effective Date of Acquisition		Jan. 03, 2017
Purchase Price, Net of Cash Acquired			226,015
Revenue Reported by Acquired Entity for Last Annual Period			64,000
Commercial Industrial [Member] | Para Tech Coating, Inc (Para Tech) [Member]
Business Acquisition [Line Items]
Effective Date of Acquisition	Feb. 08, 2017
Payments to Acquire Businesses, Gross			$ 6,615

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RECEIVABLES (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Billed receivables:
Trade and other receivables	$ 374,691	$ 340,091
Less: Allowance for doubtful accounts	(7,219)	(4,832)
Net billed receivables	367,472	335,259
Unbilled receivables:
Recoverable costs and estimated earnings not billed	158,006	149,847
Less: Progress payments applied	(23,262)	(22,044)
Net unbilled receivables	134,744	127,803
Receivables, net	$ 502,216	$ 463,062

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INVENTORIES (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Inventory, Net [Abstract]
Raw material	$ 195,461	$ 189,228
Work-in-process	85,321	73,843
Finished goods and component parts	123,362	112,478
Inventoried costs related to U.S. Government and other long-term contracts	60,008	57,516
Gross inventories	464,152	433,065
Less: Inventory reserves	58,108	54,988
Progress payments applied, principally related to long-term contracts	(9,799)	(11,103)
Inventories, net	$ 396,245	$ 366,974

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INVENTORIES (Narrative) (Detail) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Inventory, Net [Abstract]
Other inventory, capitalized costs	$ 29.9	$ 28.8
Other inventory, capitalized costs to be liquidated under firm orders	$ 4.6	$ 3.9

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GOODWILL (Detail) $ in Thousands	6 Months Ended
	Jun. 30, 2017 USD ($)
Goodwill [Roll Forward]
December 31, 2016	$ 951,057
Goodwill, Acquired During Period	116,267
Foreign currency translation adjustment	15,620
June 30, 2017	1,082,944
Commercial Industrial [Member]
Goodwill [Roll Forward]
December 31, 2016	436,141
Goodwill, Acquired During Period	2,420
Foreign currency translation adjustment	6,468
June 30, 2017	445,029
Defense [Member]
Goodwill [Roll Forward]
December 31, 2016	327,655
Goodwill, Acquired During Period	113,847
Foreign currency translation adjustment	9,044
June 30, 2017	450,546
Power [Member]
Goodwill [Roll Forward]
December 31, 2016	187,261
Foreign currency translation adjustment	108
June 30, 2017	$ 187,369

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OTHER INTANGIBLE ASSETS, NET (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Finite Lived Intangible Assets [Line Items]
Gross	$ 644,608	$ 553,310
Accumulated Amortization	(298,617)	(281,849)
Net	345,991	271,461
Technology [Member]
Finite Lived Intangible Assets [Line Items]
Gross	240,858	166,859
Accumulated Amortization	(105,400)	(98,266)
Net	135,458	68,593
Customer Relationships [Member]
Finite Lived Intangible Assets [Line Items]
Gross	363,500	349,742
Accumulated Amortization	(168,351)	(157,154)
Net	195,149	192,588
Other Intangible Assets [Member]
Finite Lived Intangible Assets [Line Items]
Gross	40,250	36,709
Accumulated Amortization	(24,866)	(26,429)
Net	$ 15,384	$ 10,280

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OTHER INTANGIBLE ASSETS, NET (Narrative) (Detail) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Finite Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired	$ 88.9
Amortization expense	19.1	$ 16.8
Future amortization expense in remainder of fiscal year	38.7
Future amortization expense in year two	37.7
Future amortization expense in year three	36.0
Future amortization expense in year four	34.1
Future amortization expense in year five	32.3
Technology [Member]
Finite Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired	$ 73.0
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	15 years
Customer Relationships [Member]
Finite Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired	$ 12.9
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	16 years 3 months 18 days
Other Intangible Assets [Member]
Finite Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired	$ 3.0
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	7 years

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FAIR VALUE OF FINANCIAL INSTRUMENTS (Income Loss) (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
General And Administrative Expense [Member]
Derivative Instruments Gain Loss [Line Items]
General and administrative expenses	$ (93)	$ 4,452	$ 614	$ 5,036

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FAIR VALUE OF FINANCIAL INSTRUMENTS (Debt) (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Carrying Value	$ 965,630	$ 966,298
Estimated Fair Value	1,000,341	978,652
Long-term Debt, Gross	950,820	950,668
Debt Issuance Costs, Net	(907)	(984)
Deferred Gain (Loss) on Discontinuation of Interest Rate Fair Value Hedge	15,717	16,614
5.51% Senior notes due 2017 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Carrying Value	150,000	150,000
Estimated Fair Value	$ 152,161	154,509
Debt Instrument, Interest Rate, Stated Percentage	5.51%
3.84% Senior notes due 2021 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Carrying Value	$ 100,000	100,000
Estimated Fair Value	$ 104,107	102,463
Debt Instrument, Interest Rate, Stated Percentage	3.84%
3.70% Senior notes due 2023 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Carrying Value	$ 225,000	225,000
Estimated Fair Value	$ 232,173	226,946
Debt Instrument, Interest Rate, Stated Percentage	3.70%
3.85% Senior notes due 2025 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Carrying Value	$ 100,000	100,000
Estimated Fair Value	$ 103,389	100,338
Debt Instrument, Interest Rate, Stated Percentage	3.85%
4.24% Senior notes due 2026 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Carrying Value	$ 200,000	200,000
Estimated Fair Value	$ 211,038	203,592
Debt Instrument, Interest Rate, Stated Percentage	4.24%
4.05% Senior notes due 2028 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Carrying Value	$ 75,000	75,000
Estimated Fair Value	$ 77,685	74,630
Debt Instrument, Interest Rate, Stated Percentage	4.05%
4.11% Senior Notes [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Carrying Value	$ 100,000	100,000
Estimated Fair Value	$ 104,158	99,876
Debt Instrument, Interest Rate, Stated Percentage	4.11%
Other debt [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Carrying Value	$ 820	668
Estimated Fair Value	820	668
Long-term Debt, gross [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Estimated Fair Value	$ 985,531	$ 963,022

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PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Detail) - Pension Plans Defined Benefit [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 6,474	$ 6,248	$ 12,945	$ 12,485
Interest cost	6,236	7,709	12,455	15,412
Expected return on plan assets	(13,310)	(13,590)	(26,595)	(27,171)
Amortization of prior service cost	(26)	(11)	(51)	(23)
Amortization of unrecognized actuarial loss	3,585	3,093	7,166	6,186
Net postretirement benefit cost (income)	$ 2,959	$ 3,449	$ 5,920	$ 6,889

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PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Additional) (Detail) - USD ($) $ in Millions	6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2017
Defined Benefit Plan Disclosure [Line Items]
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay	6.00%
Defined Contribution Plan, Cost	$ 6.8	$ 6.0
Defined Contribution Plan, Employer Discretionary Contribution Amount	$ 9.4
Scenario, Forecast [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Contribution Plan, Employer Discretionary Contribution Amount			$ 11.8

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EARNINGS PER SHARE (Detail) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings Per Share Reconciliation [Abstract]
Basic weighted-average shares outstanding (shares)	44,213	44,487	44,221	44,526
Dilutive effect of stock options and deferred stock compensation (shares)	594	677	604	669
Diluted weighted-average shares outstanding (shares)	44,807	45,164	44,825	45,195

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EARNINGS PER SHARE EARNINGS PER SHARE (Anti-dilutive) (Details) shares in Thousands	3 Months Ended
	Jun. 30, 2017 shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	38

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SEGMENT INFORMATION (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Segment Reporting Information [Line Items]
Net sales	$ 567,653	$ 532,766	$ 1,091,244	$ 1,036,273
Operating income (expense)	83,271	68,089	134,498	125,352
Identifiable assets	3,121,274		3,121,274		$ 3,037,781
Commercial Industrial [Member]
Segment Reporting Information [Line Items]
Net sales	291,856	290,428	570,912	565,633
Operating income (expense)	43,693	38,957	74,314	69,009
Identifiable assets	1,420,411		1,420,411		1,391,040
Defense [Member]
Segment Reporting Information [Line Items]
Net sales	127,399	114,877	242,236	220,607
Operating income (expense)	21,187	18,609	32,342	35,454
Identifiable assets	1,013,636		1,013,636		751,859
Power [Member]
Segment Reporting Information [Line Items]
Net sales	149,970	129,123	280,565	252,869
Operating income (expense)	24,870	16,114	41,410	30,742
Identifiable assets	517,053		517,053		516,321
Corporate, Non-Segment [Member]
Segment Reporting Information [Line Items]
Operating income (expense)	(6,479)	(5,591)	(13,568)	(9,853)
Identifiable assets	170,174		170,174		$ 378,561
Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
Net sales	$ (1,572)	$ (1,662)	$ (2,469)	$ (2,836)

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SEGMENT INFORMATION (Reconciliation) (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Segment Reporting [Abstract]
Total operating income	$ 83,271	$ 68,089	$ 134,498	$ 125,352
Interest expense	(10,750)	(10,273)	(21,127)	(20,206)
Other income, net	190	101	502	335
Earnings before income taxes	$ 72,711	$ 57,917	$ 113,873	$ 105,481

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance			$ (291,756)	$ (225,928)	$ (225,928)
Other comprehensive income (loss) before reclassifications			43,394		(72,732)
Amounts reclassified from accumulated other comprehensive loss			4,201		6,904
Other comprehensive income (loss), net of tax	$ 34,420	$ (30,126)	47,595	(11,409)	(65,828)
Ending balance	(244,161)		(244,161)		(291,756)
Foreign Currency Translation Adjustments, Net [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance			(172,650)	(107,810)	(107,810)
Other comprehensive income (loss) before reclassifications			43,901		(64,840)
Amounts reclassified from accumulated other comprehensive loss			0		0
Other comprehensive income (loss), net of tax			43,901		(64,840)
Ending balance	(128,749)		(128,749)		(172,650)
Total Pension and Postretirment Adjustments, Net [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance			(119,106)	$ (118,118)	(118,118)
Other comprehensive income (loss) before reclassifications			(507)		(7,892)
Amounts reclassified from accumulated other comprehensive loss			4,201		6,904
Other comprehensive income (loss), net of tax			3,694		(988)
Ending balance	$ (115,412)		$ (115,412)		$ (119,106)

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Reclass) (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
Earnings from continuing operations before income taxes	$ 72,711	$ 57,917	$ 113,873	$ 105,481
Reclassification out of Accumulated Other Comprehensive Income [Member] | Total Pension and Postretirment Adjustments, Net [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amortization of prior service costs			379
Amortization of actuarial losses			(7,064)
Earnings from continuing operations before income taxes			(6,685)
Income tax			2,484
Net earnings			$ (4,201)

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CONTINGENCIES AND COMMITMENTS (Detail) - USD ($)	Oct. 10, 2013	Jun. 30, 2017	Mar. 29, 2017	Dec. 31, 2016
Standby Letters Of Credit [Member]
Loss Contingencies [Line Items]
Letters of credit, outstanding		$ 48,800,000		$ 47,200,000
FinancialStandbyLetterOfCreditMember
Loss Contingencies [Line Items]
Letters of credit, outstanding		13,900,000		$ 12,800,000
Failure to Meet Contractual Obligations [Member]
Loss Contingencies [Line Items]
Damages sought	$ 25,000,000
Surety Bond [Member]
Loss Contingencies [Line Items]
Surety Bond Outstanding		56,000,000
Damage from Fire, Explosion or Other Hazard [Member]
Loss Contingencies [Line Items]
Estimated Litigation Liability		1,000,000,000
Minimum [Member]
Loss Contingencies [Line Items]
Range of possible loss		0
Maximum [Member]
Loss Contingencies [Line Items]
Range of possible loss		56,000,000
Westinghouse Electric Company (WEC) [Member] | Pending Litigation [Member]
Loss Contingencies [Line Items]
Debtor-in-Possession Financing, Amount Arranged			$ 800,000,000
AP1000 US [Member] | Minimum [Member]
Loss Contingencies [Line Items]
Range of possible loss		0
AP1000 US [Member] | Maximum [Member]
Loss Contingencies [Line Items]
Range of possible loss		$ 31,000,000
Westinghouse Electric Company (WEC) [Member] | Collectibility of Receivables [Member]
Loss Contingencies [Line Items]
Range of possible loss			$ 6,500,000

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SUBSEQUENT EVENTS (Details) - Scenario, Forecast [Member] - $ / shares	Jul. 20, 2017	Sep. 30, 2017
Subsequent Event [Line Items]
Increase (Decrease) In Dividends Payable, per share	$ 0.02
Increase (Decrease) In Dividends Payable, percentage	15.00%
Dividends Payable, Amount Per Share		$ 0.15