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SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2016
Segment Reporting [Abstract]  
SEGMENT INFORMATION
SEGMENT INFORMATION
The Company’s primary business is the design and manufacture of arc welding and cutting products, manufacturing a broad line of arc welding equipment, consumable welding products and other welding and cutting products.  Welding products include arc welding power sources, CNC and plasma cutters, wire feeding systems, robotic welding packages, integrated automation systems, fume extraction equipment, consumable electrodes, fluxes and welding accessories. The Company's product offering also includes oxy-fuel cutting systems and regulators and torches used in oxy-fuel welding, cutting and brazing. In addition, the Company has a leading global position in the brazing and soldering alloys market.
During the first quarter of 2016, the Company realigned its organizational and leadership structure into three operating segments to support growth strategies and enhance the utilization of the Company’s worldwide resources and global sourcing initiatives. The operating segments consist of Americas Welding, International Welding and The Harris Products Group.  The Americas Welding segment includes welding operations in North and South America. The International Welding segment primarily includes welding operations in Europe, Africa, Asia and Australia. The Harris Products Group includes the Company’s global cutting, soldering and brazing businesses as well as its retail business in the United States. All prior period results have been revised to reflect the realigned segment structure.
Segment performance is measured and resources are allocated based on a number of factors, the primary profit measure being adjusted earnings before interest and income taxes (“Adjusted EBIT”).  EBIT is defined as Operating income plus Equity earnings in affiliates and Other income. Segment EBIT is adjusted for special items as determined by management such as the impact of rationalization activities, certain asset impairment charges and gains or losses on disposals of assets.
Financial information for the reportable segments follows:
 
Americas Welding
 
International Welding
 
The Harris
Products
Group
 
Corporate /
Eliminations
 
Consolidated
Three Months Ended June 30, 2016
 

 
 

 
 

 
 

 
 

Net sales
$
388,372

 
$
132,815

 
$
71,231

 
$
—

 
$
592,418

Inter-segment sales
23,456

 
3,841

 
2,824

 
(30,121
)
 
—

Total
$
411,828

 
$
136,656

 
$
74,055

 
$
(30,121
)
 
$
592,418

 
 
 
 
 
 
 
 
 
 
Adjusted EBIT
$
65,201

 
$
9,670

 
$
9,284

 
$
(298
)
 
$
83,857

Special items charge
—

 
—

 
—

 
34,348

 
34,348

EBIT
$
65,201

 
$
9,670

 
$
9,284

 
$
(34,646
)
 
$
49,509

Interest income
 

 
 

 
 

 
 

 
435

Interest expense
 

 
 

 
 

 
 

 
(4,186
)
Income before income taxes
 

 
 

 
 

 
 

 
$
45,758

 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2015
 

 
 

 
 

 
 

 
 

Net sales
$
451,001

 
$
141,927

 
$
71,812

 
$
—

 
$
664,740

Inter-segment sales
23,902

 
5,311

 
2,716

 
(31,929
)
 
—

Total
$
474,903

 
$
147,238

 
$
74,528

 
$
(31,929
)
 
$
664,740

 
 
 
 
 
 
 
 
 
 
Adjusted EBIT
$
79,421

 
$
11,017

 
$
8,250

 
$
634

 
$
99,322

Special items charge
—

 
1,239

 
—

 
—

 
1,239

EBIT
$
79,421

 
$
9,778

 
$
8,250

 
$
634

 
$
98,083

Interest income
 

 
 

 
 

 
 

 
738

Interest expense
 

 
 

 
 

 
 

 
(4,387
)
Income before income taxes
 

 
 

 
 

 
 

 
$
94,434

 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2016
 

 
 

 
 

 
 

 
 

Net sales
$
747,380

 
$
257,120

 
$
138,640

 
$
—

 
$
1,143,140

Inter-segment sales
47,287

 
8,267

 
5,127

 
(60,681
)
 
—

Total
$
794,667

 
$
265,387

 
$
143,767

 
$
(60,681
)
 
$
1,143,140

 
 
 
 
 
 
 
 
 
 
Adjusted EBIT
$
126,639

 
$
15,903

 
$
16,995

 
$
899

 
$
160,436

Special items charge
—

 
—

 
—

 
34,348

 
34,348

EBIT
$
126,639

 
$
15,903

 
$
16,995

 
$
(33,449
)
 
$
126,088

Interest income
 

 
 

 
 

 
 

 
865

Interest expense
 

 
 

 
 

 
 
 
(8,013
)
Income before income taxes
 

 
 

 
 

 
 

 
$
118,940

 
 
 
 
 
 
 
 
 
 
Six months ended June 30, 2015
 

 
 

 
 

 
 

 
 

Net sales
$
899,838

 
$
281,174

 
$
141,628

 
$
—

 
$
1,322,640

Inter-segment sales
46,925

 
10,338

 
4,727

 
(61,990
)
 
—

Total
$
946,763

 
$
291,512

 
$
146,355

 
$
(61,990
)
 
$
1,322,640

 
 
 
 
 
 
 
 
 
 
Adjusted EBIT
$
154,836

 
$
21,951

 
$
15,799

 
$
694

 
$
193,280

Special items charge
—

 
1,239

 
—

 
—

 
1,239

EBIT
$
154,836

 
$
20,712

 
$
15,799

 
$
694

 
$
192,041

Interest income
 

 
 

 
 

 
 

 
1,331

Interest expense
 

 
 

 
 

 
 

 
(6,231
)
Income before income taxes
 

 
 

 
 

 
 

 
$
187,141

 
 
 
 
 
 
 
 
 
 

In the three and six months ended June 30, 2016, special items within Corporate/Eliminations reflect a loss on the deconsolidation of the Venezuelan subsidiary.
In the three and six months ended June 30, 2015, special items in International Welding reflect rationalization activity charges.