XML 22 R11.htm IDEA: XBRL DOCUMENT v3.7.0.1
SEGMENT INFORMATION
 3 Months Ended
Mar. 31, 2017
Segment Reporting [Abstract]  
SEGMENT INFORMATION
SEGMENT INFORMATION
As of March 31, 2017, the Company's business units were aligned into three operating segments. 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.
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. 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 (1)
 
Consolidated
Three Months Ended March 31, 2017
 

 
 

 
 

 
 

 
 

Net sales
$
383,324

 
$
128,888

 
$
68,685

 
$
—

 
$
580,897

Inter-segment sales
22,460

 
4,285

 
2,300

 
(29,045
)
 
—

Total
$
405,784

 
$
133,173

 
$
70,985

 
$
(29,045
)
 
$
580,897

 
 
 
 
 
 
 
 
 
 
Adjusted EBIT
$
68,723

 
$
9,605

 
$
8,460

 
$
64

 
$
86,852

Special items charge
—

 
—

 
—

 
3,615

 
3,615

EBIT
$
68,723

 
$
9,605

 
$
8,460

 
$
(3,551
)
 
$
83,237

Interest income
 

 
 

 
 

 
 

 
777

Interest expense
 

 
 

 
 

 
 
 
(6,114
)
Income before income taxes
 

 
 

 
 

 
 

 
$
77,900

 
 
 
 
 
 
 
 
 
 
Three months ended March 31, 2016
 

 
 

 
 

 
 

 
 

Net sales
$
359,008

 
$
124,305

 
$
67,409

 
$
—

 
$
550,722

Inter-segment sales
23,831

 
4,426

 
2,303

 
(30,560
)
 
—

Total
$
382,839

 
$
128,731

 
$
69,712

 
$
(30,560
)
 
$
550,722

 
 
 
 
 
 
 
 
 
 
Adjusted EBIT
$
61,438

 
$
6,233

 
$
7,711

 
$
1,197

 
$
76,579

Special items charge
—

 
—

 
—

 
—

 
—

EBIT
$
61,438

 
$
6,233

 
$
7,711

 
$
1,197

 
$
76,579

Interest income
 

 
 

 
 

 
 

 
430

Interest expense
 

 
 

 
 

 
 

 
(3,827
)
Income before income taxes
 

 
 

 
 

 
 

 
$
73,182

 
 
 
 
 
 
 
 
 
 

(1) In the three months ended March 31, 2017, special items in Corporate / Eliminations reflect transaction costs related to the proposed acquisition as discussed in Note 3.