SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2012

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. The Company also has a leading global position in the brazing and soldering alloys market. The Company has aligned its business units into five operating segments to enhance the utilization of the Company's worldwide resources and global end user and sourcing initiatives. The operating segments consist of North America Welding, Europe Welding, Asia Pacific Welding, South America Welding and The Harris Products Group. The North America Welding segment includes welding operations in the United States, Canada and Mexico. The Europe Welding segment includes welding operations in Europe, Russia, Africa and the Middle East. The other two welding segments include welding operations in Asia Pacific and South America, respectively. The fifth segment, The Harris Products Group, includes the Company's global cutting, soldering and brazing businesses as well as the 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 earnings before interest and income taxes ("EBIT"), as adjusted. 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. The accounting principles applied at the operating segment level are generally the same as those applied at the consolidated financial statement level with the exception of LIFO. Segment assets include inventories measured on a FIFO basis while consolidated inventories are reported on a LIFO basis. Segment and consolidated income before interest and income taxes are reported on a LIFO basis. At December 31, 2012, 2011 and 2010, approximately 34%, 31% and 30%, respectively, of total inventories were valued using the LIFO method. LIFO is used for certain domestic inventories included in the North America Welding segment. Inter-segment sales are recorded at agreed upon prices that approximate arm's length prices and are eliminated in consolidation. Corporate-level expenses are allocated to the operating segments on a basis that management believes to be reasonable. Certain corporate-level expenses may not be allocated to the operating segments and are reported as Corporate/Eliminations.

Financial information for the reportable segments follows:

	North America Welding		Europe Welding		Asia Pacific Welding			South America Welding		The Harris Products Group		Corporate / Eliminations			Consolidated
For the Year Ended    December 31, 2012
Net sales	$	1,580,818	$	452,227	$	324,482		$	161,483	$	334,357	$	—		$	2,853,367
Inter-segment sales	131,062		16,048		14,829			38		8,549		(170,526		)	$	—
Total	$	1,711,880	$	468,275	$	339,311		$	161,521	$	342,906	$	(170,526	)	$	2,853,367
EBIT, as adjusted	$	293,070	$	37,299	$	7,247		$	18,301	$	29,477	$	(4,886	)	$	380,508
Special items charge (gain)	827		3,534		4,993			1,381		—		—			$	10,735
EBIT	$	292,243	$	33,765	$	2,254		$	16,920	$	29,477	$	(4,886	)	$	369,773
Interest income															3,988
Interest expense															(4,191		)
Income before income taxes															$	369,570
Total assets	$	980,093	$	451,654	$	350,189		$	134,650	$	195,881	$	(22,604	)	$	2,089,863
Equity investments in affiliates	—		21,798		—			2,808		—		—			$	24,606
Capital expenditures	36,834		5,372		8,833			899		831		(54		)	$	52,715
Depreciation and amortization	33,479		11,008		15,102			1,878		3,934		(67		)	$	65,334
For the Year Ended    December 31, 2011
Net sales	$	1,309,499	$	508,692	$	376,276		$	156,684	$	343,458	$	—		$	2,694,609
Inter-segment sales	136,314		17,422		15,614			494		8,496		(178,340		)	$	—
Total	$	1,445,813	$	526,114	$	391,890		$	157,178	$	351,954	$	(178,340	)	$	2,694,609
EBIT, as adjusted	$	227,924	$	36,171	$	2,629		$	12,895	$	25,151	$	426		$	305,196
Special items charge (gain)	—		392		(110		)	—		—		—			$	282
EBIT	$	227,924	$	35,779	$	2,739		$	12,895	$	25,151	$	426		$	304,914
Interest income															3,121
Interest expense															(6,704		)
Income before income taxes															$	301,331
Total assets	$	771,315	$	436,327	$	380,282		$	110,781	$	181,916	$	96,155		$	1,976,776
Equity investments in affiliates	—		20,500		—			4,118		—		—			$	24,618
Capital expenditures	31,826		8,566		21,498			2,314		1,792		(183		)	$	65,813
Depreciation and amortization	29,237		11,736		14,663			2,033		4,714		(332		)	$	62,051
For the Year Ended    December 31, 2010
Net sales	$	1,013,193	$	359,925	$	324,092		$	117,419	$	255,543	$	—		$	2,070,172
Inter-segment sales	108,849		13,330		12,546			1,216		6,641		(142,582		)	$	—
Total	$	1,122,042	$	373,255	$	336,638		$	118,635	$	262,184	$	(142,582	)	$	2,070,172
EBIT, as adjusted	$	162,192	$	17,023	$	1,752		$	7,554	$	12,311	$	(6,675	)	$	194,157
Special items charge (gain)	—		2,486		(3,741		)	3,123		871		—			$	2,739
EBIT	$	162,192	$	14,537	$	5,493		$	4,431	$	11,440	$	(6,675	)	$	191,418
Interest income															2,381
Interest expense															(6,691		)
Income before income taxes															$	187,108
Total assets	$	611,725	$	413,789	$	350,975		$	94,836	$	193,474	$	118,989		$	1,783,788
Equity investments in affiliates	—		19,194		—			3,715		—		—			$	22,909
Capital expenditures	25,746		10,373		22,973			3,573		884		(2,984		)	$	60,565
Depreciation and amortization	27,652		9,527		13,542			1,564		5,012		60			$	57,357

In 2012, special items include net charges of $827, $3,637 and $3,151 for rationalization actions in the North America Welding, Europe Welding and Asia Pacific Welding segments, respectively, primarily related to employee severance and other costs associated with the consolidation of manufacturing operations. The Europe Welding segment special items also include a gain of $103 on the sale of assets. The Asia Pacific Welding segment special items also include a charge of $1,842 related to asset impairments. The South America Welding segment special item represents a charge of $1,381 related to a change in Venezuelan labor law, which provides for increased employee severance obligations.

In 2011, special items include net charges of $188 and $93 for rationalization actions in the Europe Welding and Asia Pacific Welding segments, respectively, primarily related to employee severance and other costs associated with the consolidation of manufacturing operations. The Europe Welding and Asia Pacific Welding segments special items also include a loss of $204 and a gain of $203, respectively, on the sale of assets at rationalized operations.

In 2010, special items include a charge of $1,990 for rationalization actions and $496 in related asset impairment charges for the Europe Welding segment. The Asia Pacific Welding segment includes a gain of $4,555 related to the disposal of assets, a charge of $427 for rationalization actions and $387 in asset impairment charges. The South America Welding segment includes a net charge of $3,123 related to the change in functional currency and devaluation of the Venezuelan currency. The Harris Products Group segment includes a net charge of $871 related to environmental costs associated with the sale of property at a rationalized operation.

Export sales (excluding inter-company sales) from the United States were $268,331 in 2012, $242,380 in 2011 and $197,057 in 2010. No individual customer comprised more than 10% of the Company's total revenues for any of the three years ended December 31, 2012.

The geographic split of the Company's net sales, based on the location of the customer, and property, plant and equipment were as follows:

	Year Ended December 31,
	2012		2011		2010
Net sales:
United States	$	1,283,066	$	1,092,838	$	825,371
China	229,996		286,121		250,981
Other foreign countries	1,340,305		1,315,650		993,820
Total	$	2,853,367	$	2,694,609	$	2,070,172

	December 31,
	2012			2011			2010
Property, plant and equipment, net:
United States	$	170,831		$	149,637		$	149,185
China	92,744			96,374			87,722
Other foreign countries	223,050			224,801			242,084
Eliminations	(389		)	(361		)	(425		)
Total	$	486,236		$	470,451		$	478,566