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June 30, 2015 | December 31, 2014 | ||||||
Finished goods | $ | 78,817 | $ | 83,905 | |||
Work-in-process | 80,485 | 79,563 | |||||
Raw material and supplies | 51,000 | 48,576 | |||||
$ | 210,302 | $ | 212,044 |
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Industrial | Aerospace | Total Company | |||||||||
January 1, 2015 | $ | 564,163 | $ | 30,786 | $ | 594,949 | |||||
Foreign currency translation | (11,501 | ) | — | (11,501 | ) | ||||||
June 30, 2015 | $ | 552,662 | $ | 30,786 | $ | 583,448 |
June 30, 2015 | December 31, 2014 | ||||||||||||||||
Range of Life -Years | Gross Amount | Accumulated Amortization | Gross Amount | Accumulated Amortization | |||||||||||||
Amortized intangible assets: | |||||||||||||||||
Revenue sharing programs (RSPs) | Up to 30 | $ | 293,700 | $ | (78,820 | ) | $ | 293,700 | $ | (72,958 | ) | ||||||
Component repair programs (CRPs) | Up to 30 | 106,639 | (4,003 | ) | 106,639 | (1,941 | ) | ||||||||||
Customer lists/relationships | 10-16 | 183,406 | (36,116 | ) | 183,406 | (30,731 | ) | ||||||||||
Patents and technology | 7-14 | 62,972 | (25,834 | ) | 62,972 | (22,356 | ) | ||||||||||
Trademarks/trade names | 10-30 | 11,950 | (9,008 | ) | 11,950 | (8,552 | ) | ||||||||||
Other | Up to 15 | 19,292 | (16,997 | ) | 19,292 | (14,806 | ) | ||||||||||
677,959 | (170,778 | ) | 677,959 | (151,344 | ) | ||||||||||||
Unamortized intangible asset: | |||||||||||||||||
Trade names | 36,900 | — | 36,900 | — | |||||||||||||
Foreign currency translation | (20,183 | ) | — | (8,821 | ) | — | |||||||||||
Other intangible assets | $ | 694,676 | $ | (170,778 | ) | $ | 706,038 | $ | (151,344 | ) |
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June 30, 2015 | December 31, 2014 | |||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||
Revolving credit agreement | $ | 373,000 | $ | 373,219 | $ | 393,518 | $ | 394,917 | ||||||||
3.97% Senior Notes | 100,000 | 101,892 | 100,000 | 102,859 | ||||||||||||
Borrowings under lines of credit and overdrafts | 21,789 | 21,789 | 8,028 | 8,028 | ||||||||||||
Capital leases | 2,554 | 2,758 | 3,188 | 3,479 | ||||||||||||
497,343 | 499,658 | 504,734 | 509,283 | |||||||||||||
Less current maturities | (22,613 | ) | (8,890 | ) | ||||||||||||
Long-term debt | $ | 474,730 | $ | 495,844 |
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June 30, 2015 | December 31, 2014 | ||||||||||||||
Asset Derivatives | Liability Derivatives | Asset Derivatives | Liability Derivatives | ||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||
Interest rate contracts | $ | — | $ | (564 | ) | $ | — | $ | (295 | ) | |||||
Foreign exchange contracts | — | (50 | ) | — | (652 | ) | |||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Foreign exchange contracts | 399 | (781 | ) | 460 | (699 | ) | |||||||||
Total derivatives | $ | 399 | $ | (1,395 | ) | $ | 460 | $ | (1,646 | ) |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Cash flow hedges: | |||||||||||||||
Interest rate contracts | $ | 63 | $ | (213 | ) | $ | (169 | ) | $ | (142 | ) | ||||
Foreign exchange contracts | 126 | (289 | ) | 470 | (387 | ) | |||||||||
$ | 189 | $ | (502 | ) | $ | 301 | $ | (529 | ) |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Foreign exchange contracts | $ | (1,671 | ) | $ | (241 | ) | $ | 6,945 | $ | (988 | ) |
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Level 1 | Unadjusted quoted prices in active markets for identical assets or liabilities |
Level 2 | Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability |
Level 3 | Unobservable inputs for the asset or liability |
Fair Value Measurements Using | ||||||||||||||||
Description | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
June 30, 2015 | ||||||||||||||||
Asset derivatives | $ | 399 | $ | — | $ | 399 | $ | — | ||||||||
Liability derivatives | (1,395 | ) | — | (1,395 | ) | — | ||||||||||
Bank acceptances | 16,785 | — | 16,785 | — | ||||||||||||
Rabbi trust assets | 2,259 | 2,259 | — | — | ||||||||||||
$ | 18,048 | $ | 2,259 | $ | 15,789 | $ | — | |||||||||
December 31, 2014 | ||||||||||||||||
Asset derivatives | $ | 460 | $ | — | $ | 460 | $ | — | ||||||||
Liability derivatives | (1,646 | ) | — | (1,646 | ) | — | ||||||||||
Bank acceptances | 10,785 | — | 10,785 | — | ||||||||||||
Rabbi trust assets | 2,092 | 2,092 | — | — | ||||||||||||
$ | 11,691 | $ | 2,092 | $ | 9,599 | $ | — |
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Gains and Losses on Cash Flow Hedges | Pension and Other Postretirement Benefit Items | Foreign Currency Items | Total | ||||||||||||
January 1, 2015 | $ | (732 | ) | $ | (115,289 | ) | $ | 16,568 | $ | (99,453 | ) | ||||
Other comprehensive (loss) income before reclassifications to consolidated statements of income | (249 | ) | 355 | (16,125 | ) | (16,019 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income to the consolidated statements of income | 550 | 5,096 | — | 5,646 | |||||||||||
Net current-period other comprehensive income (loss) | 301 | 5,451 | (16,125 | ) | (10,373 | ) | |||||||||
June 30, 2015 | $ | (431 | ) | $ | (109,838 | ) | $ | 443 | $ | (109,826 | ) |
Gains and Losses on Cash Flow Hedges | Pension and Other Postretirement Benefit Items | Foreign Currency Items | Total | ||||||||||||
January 1, 2014 | $ | (519 | ) | $ | (73,273 | ) | $ | 99,736 | $ | 25,944 | |||||
Other comprehensive loss before reclassifications to consolidated statements of income | (820 | ) | (8,133 | ) | (10,560 | ) | (19,513 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income to the consolidated statements of income | 291 | 3,752 | — | 4,043 | |||||||||||
Net current-period other comprehensive loss | (529 | ) | (4,381 | ) | (10,560 | ) | (15,470 | ) | |||||||
June 30, 2014 | $ | (1,048 | ) | $ | (77,654 | ) | $ | 89,176 | $ | 10,474 |
Details about Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income | Affected Line Item in the Consolidated Statements of Income | ||||||||
Three months ended June 30, 2015 | Three months ended June 30, 2014 | |||||||||
Gains and losses on cash flow hedges | ||||||||||
Interest rate contracts | $ | (214 | ) | $ | (222 | ) | Interest expense | |||
Foreign exchange contracts | (116 | ) | (42 | ) | Net sales | |||||
(330 | ) | (264 | ) | Total before tax | ||||||
106 | 92 | Tax benefit | ||||||||
(224 | ) | (172 | ) | Net of tax | ||||||
Pension and other postretirement benefit items | ||||||||||
Amortization of prior-service credits, net | $ | 64 | $ | 61 | (A) | |||||
Amortization of actuarial losses | (4,300 | ) | (2,537 | ) | (A) | |||||
Settlement loss | — | (582 | ) | (A) | ||||||
(4,236 | ) | (3,058 | ) | Total before tax | ||||||
1,421 | 855 | Tax benefit | ||||||||
(2,815 | ) | (2,203 | ) | Net of tax | ||||||
Total reclassifications in the period | $ | (3,039 | ) | $ | (2,375 | ) |
Details about Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income | Affected Line Item in the Consolidated Statements of Income | ||||||||
Six months ended June 30, 2015 | Six months ended June 30, 2014 | |||||||||
Gains and losses on cash flow hedges | ||||||||||
Interest rate contracts | $ | (429 | ) | $ | (439 | ) | Interest expense | |||
Foreign exchange contracts | (360 | ) | (20 | ) | Net sales | |||||
(789 | ) | (459 | ) | Total before tax | ||||||
239 | 168 | Tax benefit | ||||||||
(550 | ) | (291 | ) | Net of tax | ||||||
Pension and other postretirement benefit items | ||||||||||
Amortization of prior-service credits, net | $ | 127 | $ | 101 | (A) | |||||
Amortization of actuarial losses | (7,990 | ) | (4,715 | ) | (A) | |||||
Curtailment loss | — | (223 | ) | (A) | ||||||
Settlement loss | — | (582 | ) | (A) | ||||||
(7,863 | ) | (5,419 | ) | Total before tax | ||||||
2,767 | 1,667 | Tax benefit | ||||||||
(5,096 | ) | (3,752 | ) | Net of tax | ||||||
Total reclassifications in the period | $ | (5,646 | ) | $ | (4,043 | ) |
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Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Net sales | |||||||||||||||
Industrial | $ | 202,589 | $ | 212,768 | $ | 402,938 | $ | 416,656 | |||||||
Aerospace | 112,356 | 109,310 | 212,581 | 217,521 | |||||||||||
Intersegment sales | (4 | ) | (4 | ) | (4 | ) | (4 | ) | |||||||
Total net sales | $ | 314,941 | $ | 322,074 | $ | 615,515 | $ | 634,173 | |||||||
Operating profit | |||||||||||||||
Industrial | $ | 29,979 | $ | 28,765 | $ | 60,958 | $ | 48,140 | |||||||
Aerospace | 20,670 | 16,616 | 33,586 | 32,366 | |||||||||||
Total operating profit | 50,649 | 45,381 | 94,544 | 80,506 | |||||||||||
Interest expense | 2,586 | 2,804 | 5,306 | 6,123 | |||||||||||
Other expense (income), net | 237 | 792 | 318 | 1,027 | |||||||||||
Income before income taxes | $ | 47,826 | $ | 41,785 | $ | 88,920 | $ | 73,356 |
June 30, 2015 | December 31, 2014 | ||||||
Assets | |||||||
Industrial | $ | 1,251,669 | $ | 1,281,974 | |||
Aerospace | 655,806 | 655,042 | |||||
Other (A) | 171,168 | 136,869 | |||||
Total assets | $ | 2,078,643 | $ | 2,073,885 |
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June 30, 2015 | December 31, 2014 | ||||||
Finished goods | $ | 78,817 | $ | 83,905 | |||
Work-in-process | 80,485 | 79,563 | |||||
Raw material and supplies | 51,000 | 48,576 | |||||
$ | 210,302 | $ | 212,044 |
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Industrial | Aerospace | Total Company | |||||||||
January 1, 2015 | $ | 564,163 | $ | 30,786 | $ | 594,949 | |||||
Foreign currency translation | (11,501 | ) | — | (11,501 | ) | ||||||
June 30, 2015 | $ | 552,662 | $ | 30,786 | $ | 583,448 |
June 30, 2015 | December 31, 2014 | ||||||||||||||||
Range of Life -Years | Gross Amount | Accumulated Amortization | Gross Amount | Accumulated Amortization | |||||||||||||
Amortized intangible assets: | |||||||||||||||||
Revenue sharing programs (RSPs) | Up to 30 | $ | 293,700 | $ | (78,820 | ) | $ | 293,700 | $ | (72,958 | ) | ||||||
Component repair programs (CRPs) | Up to 30 | 106,639 | (4,003 | ) | 106,639 | (1,941 | ) | ||||||||||
Customer lists/relationships | 10-16 | 183,406 | (36,116 | ) | 183,406 | (30,731 | ) | ||||||||||
Patents and technology | 7-14 | 62,972 | (25,834 | ) | 62,972 | (22,356 | ) | ||||||||||
Trademarks/trade names | 10-30 | 11,950 | (9,008 | ) | 11,950 | (8,552 | ) | ||||||||||
Other | Up to 15 | 19,292 | (16,997 | ) | 19,292 | (14,806 | ) | ||||||||||
677,959 | (170,778 | ) | 677,959 | (151,344 | ) | ||||||||||||
Unamortized intangible asset: | |||||||||||||||||
Trade names | 36,900 | — | 36,900 | — | |||||||||||||
Foreign currency translation | (20,183 | ) | — | (8,821 | ) | — | |||||||||||
Other intangible assets | $ | 694,676 | $ | (170,778 | ) | $ | 706,038 | $ | (151,344 | ) |
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June 30, 2015 | December 31, 2014 | |||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||
Revolving credit agreement | $ | 373,000 | $ | 373,219 | $ | 393,518 | $ | 394,917 | ||||||||
3.97% Senior Notes | 100,000 | 101,892 | 100,000 | 102,859 | ||||||||||||
Borrowings under lines of credit and overdrafts | 21,789 | 21,789 | 8,028 | 8,028 | ||||||||||||
Capital leases | 2,554 | 2,758 | 3,188 | 3,479 | ||||||||||||
497,343 | 499,658 | 504,734 | 509,283 | |||||||||||||
Less current maturities | (22,613 | ) | (8,890 | ) | ||||||||||||
Long-term debt | $ | 474,730 | $ | 495,844 |
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Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Foreign exchange contracts | $ | (1,671 | ) | $ | (241 | ) | $ | 6,945 | $ | (988 | ) |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Cash flow hedges: | |||||||||||||||
Interest rate contracts | $ | 63 | $ | (213 | ) | $ | (169 | ) | $ | (142 | ) | ||||
Foreign exchange contracts | 126 | (289 | ) | 470 | (387 | ) | |||||||||
$ | 189 | $ | (502 | ) | $ | 301 | $ | (529 | ) |
June 30, 2015 | December 31, 2014 | ||||||||||||||
Asset Derivatives | Liability Derivatives | Asset Derivatives | Liability Derivatives | ||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||
Interest rate contracts | $ | — | $ | (564 | ) | $ | — | $ | (295 | ) | |||||
Foreign exchange contracts | — | (50 | ) | — | (652 | ) | |||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Foreign exchange contracts | 399 | (781 | ) | 460 | (699 | ) | |||||||||
Total derivatives | $ | 399 | $ | (1,395 | ) | $ | 460 | $ | (1,646 | ) |
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Fair Value Measurements Using | ||||||||||||||||
Description | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
June 30, 2015 | ||||||||||||||||
Asset derivatives | $ | 399 | $ | — | $ | 399 | $ | — | ||||||||
Liability derivatives | (1,395 | ) | — | (1,395 | ) | — | ||||||||||
Bank acceptances | 16,785 | — | 16,785 | — | ||||||||||||
Rabbi trust assets | 2,259 | 2,259 | — | — | ||||||||||||
$ | 18,048 | $ | 2,259 | $ | 15,789 | $ | — | |||||||||
December 31, 2014 | ||||||||||||||||
Asset derivatives | $ | 460 | $ | — | $ | 460 | $ | — | ||||||||
Liability derivatives | (1,646 | ) | — | (1,646 | ) | — | ||||||||||
Bank acceptances | 10,785 | — | 10,785 | — | ||||||||||||
Rabbi trust assets | 2,092 | 2,092 | — | — | ||||||||||||
$ | 11,691 | $ | 2,092 | $ | 9,599 | $ | — |
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Three months ended June 30, | Six months ended June 30, | ||||||||||||||
Pensions | 2015 | 2014 | 2015 | 2014 | |||||||||||
Service cost | $ | 1,299 | $ | 1,052 | $ | 2,752 | $ | 2,307 | |||||||
Interest cost | 5,297 | 5,540 | 9,992 | 10,978 | |||||||||||
Expected return on plan assets | (8,589 | ) | (8,483 | ) | (16,159 | ) | (17,053 | ) | |||||||
Amortization of prior service cost | 77 | 157 | 155 | 334 | |||||||||||
Amortization of actuarial losses | 4,056 | 2,270 | 7,485 | 4,232 | |||||||||||
Curtailment loss | — | — | — | 219 | |||||||||||
Settlement loss | — | 582 | — | 582 | |||||||||||
Special termination benefits | — | — | — | 715 | |||||||||||
Net periodic benefit cost | $ | 2,140 | $ | 1,118 | $ | 4,225 | $ | 2,314 | |||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
Other Postretirement Benefits | 2015 | 2014 | 2015 | 2014 | |||||||||||
Service cost | $ | 36 | $ | 29 | $ | 73 | $ | 81 | |||||||
Interest cost | 425 | 540 | 918 | 1,099 | |||||||||||
Amortization of prior service credit | (141 | ) | (218 | ) | (282 | ) | (435 | ) | |||||||
Amortization of actuarial losses | 244 | 267 | 505 | 483 | |||||||||||
Curtailment loss | — | — | — | 4 | |||||||||||
Net periodic benefit cost | $ | 564 | $ | 618 | $ | 1,214 | $ | 1,232 |
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Gains and Losses on Cash Flow Hedges | Pension and Other Postretirement Benefit Items | Foreign Currency Items | Total | ||||||||||||
January 1, 2015 | $ | (732 | ) | $ | (115,289 | ) | $ | 16,568 | $ | (99,453 | ) | ||||
Other comprehensive (loss) income before reclassifications to consolidated statements of income | (249 | ) | 355 | (16,125 | ) | (16,019 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income to the consolidated statements of income | 550 | 5,096 | — | 5,646 | |||||||||||
Net current-period other comprehensive income (loss) | 301 | 5,451 | (16,125 | ) | (10,373 | ) | |||||||||
June 30, 2015 | $ | (431 | ) | $ | (109,838 | ) | $ | 443 | $ | (109,826 | ) |
Gains and Losses on Cash Flow Hedges | Pension and Other Postretirement Benefit Items | Foreign Currency Items | Total | ||||||||||||
January 1, 2014 | $ | (519 | ) | $ | (73,273 | ) | $ | 99,736 | $ | 25,944 | |||||
Other comprehensive loss before reclassifications to consolidated statements of income | (820 | ) | (8,133 | ) | (10,560 | ) | (19,513 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income to the consolidated statements of income | 291 | 3,752 | — | 4,043 | |||||||||||
Net current-period other comprehensive loss | (529 | ) | (4,381 | ) | (10,560 | ) | (15,470 | ) | |||||||
June 30, 2014 | $ | (1,048 | ) | $ | (77,654 | ) | $ | 89,176 | $ | 10,474 |
Details about Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income | Affected Line Item in the Consolidated Statements of Income | ||||||||
Three months ended June 30, 2015 | Three months ended June 30, 2014 | |||||||||
Gains and losses on cash flow hedges | ||||||||||
Interest rate contracts | $ | (214 | ) | $ | (222 | ) | Interest expense | |||
Foreign exchange contracts | (116 | ) | (42 | ) | Net sales | |||||
(330 | ) | (264 | ) | Total before tax | ||||||
106 | 92 | Tax benefit | ||||||||
(224 | ) | (172 | ) | Net of tax | ||||||
Pension and other postretirement benefit items | ||||||||||
Amortization of prior-service credits, net | $ | 64 | $ | 61 | (A) | |||||
Amortization of actuarial losses | (4,300 | ) | (2,537 | ) | (A) | |||||
Settlement loss | — | (582 | ) | (A) | ||||||
(4,236 | ) | (3,058 | ) | Total before tax | ||||||
1,421 | 855 | Tax benefit | ||||||||
(2,815 | ) | (2,203 | ) | Net of tax | ||||||
Total reclassifications in the period | $ | (3,039 | ) | $ | (2,375 | ) |
Details about Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income | Affected Line Item in the Consolidated Statements of Income | ||||||||
Six months ended June 30, 2015 | Six months ended June 30, 2014 | |||||||||
Gains and losses on cash flow hedges | ||||||||||
Interest rate contracts | $ | (429 | ) | $ | (439 | ) | Interest expense | |||
Foreign exchange contracts | (360 | ) | (20 | ) | Net sales | |||||
(789 | ) | (459 | ) | Total before tax | ||||||
239 | 168 | Tax benefit | ||||||||
(550 | ) | (291 | ) | Net of tax | ||||||
Pension and other postretirement benefit items | ||||||||||
Amortization of prior-service credits, net | $ | 127 | $ | 101 | (A) | |||||
Amortization of actuarial losses | (7,990 | ) | (4,715 | ) | (A) | |||||
Curtailment loss | — | (223 | ) | (A) | ||||||
Settlement loss | — | (582 | ) | (A) | ||||||
(7,863 | ) | (5,419 | ) | Total before tax | ||||||
2,767 | 1,667 | Tax benefit | ||||||||
(5,096 | ) | (3,752 | ) | Net of tax | ||||||
Total reclassifications in the period | $ | (5,646 | ) | $ | (4,043 | ) |
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Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Net sales | |||||||||||||||
Industrial | $ | 202,589 | $ | 212,768 | $ | 402,938 | $ | 416,656 | |||||||
Aerospace | 112,356 | 109,310 | 212,581 | 217,521 | |||||||||||
Intersegment sales | (4 | ) | (4 | ) | (4 | ) | (4 | ) | |||||||
Total net sales | $ | 314,941 | $ | 322,074 | $ | 615,515 | $ | 634,173 | |||||||
Operating profit | |||||||||||||||
Industrial | $ | 29,979 | $ | 28,765 | $ | 60,958 | $ | 48,140 | |||||||
Aerospace | 20,670 | 16,616 | 33,586 | 32,366 | |||||||||||
Total operating profit | 50,649 | 45,381 | 94,544 | 80,506 | |||||||||||
Interest expense | 2,586 | 2,804 | 5,306 | 6,123 | |||||||||||
Other expense (income), net | 237 | 792 | 318 | 1,027 | |||||||||||
Income before income taxes | $ | 47,826 | $ | 41,785 | $ | 88,920 | $ | 73,356 |
June 30, 2015 | December 31, 2014 | ||||||
Assets | |||||||
Industrial | $ | 1,251,669 | $ | 1,281,974 | |||
Aerospace | 655,806 | 655,042 | |||||
Other (A) | 171,168 | 136,869 | |||||
Total assets | $ | 2,078,643 | $ | 2,073,885 |
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