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Three months ended March 31, | |||||||
2013 | 2012 | ||||||
Net sales | $ | 75,821 | $ | 80,301 | |||
(Loss) income before income taxes | (1,778 | ) | 8,401 | ||||
Income tax expense | 183 | 3,017 | |||||
(Loss) income from operations of discontinued businesses, net of income taxes | (1,961 | ) | 5,384 | ||||
Loss on transaction | — | (780 | ) | ||||
Income tax benefit on loss on sale | — | 13 | |||||
Loss on the sale of businesses | — | (767 | ) | ||||
(Loss) income from discontinued operations, net of income taxes | $ | (1,961 | ) | $ | 4,617 |
Assets | |||
Accounts receivable, less allowance of $801 | $ | 38,752 | |
Inventories | 47,408 | ||
Prepaid expenses and other current assets | 2,179 | ||
Property, plant and equipment, net | 17,861 | ||
Goodwill | 134,715 | ||
Other assets | 396 | ||
Assets held for sale | $ | 241,311 | |
Liabilities | |||
Accounts payable | $ | 20,676 | |
Accrued liabilities | 2,964 | ||
Accrued retirement benefits | 66 | ||
Other liabilities | 103 | ||
Liabilities held for sale | $ | 23,809 |
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(Unaudited Pro Forma) Three months ended March 31, 2012 | |||
Net sales | $ | 262,120 | |
Income from continuing operations | 18,897 | ||
Net income | 23,514 | ||
Per common share: | |||
Basic: | |||
Income from continuing operations | $ | 0.35 | |
Net income | $ | 0.43 | |
Diluted: | |||
Income from continuing operations | $ | 0.34 | |
Net income | $ | 0.42 |
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March 31, 2013 | December 31, 2012 | ||||||
Finished goods | $ | 73,974 | $ | 126,139 | |||
Work-in-process | 61,495 | 56,186 | |||||
Raw material and supplies | 43,673 | 43,895 | |||||
$ | 179,142 | $ | 226,220 |
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Aerospace | Industrial | Other | Total Company | ||||||||||||
January 1, 2013 | $ | 30,786 | $ | 414,244 | $ | 134,875 | $ | 579,905 | |||||||
Transfer to assets held for sale | — | — | (134,715 | ) | (134,715 | ) | |||||||||
Foreign currency translation | — | (5,790 | ) | (160 | ) | (5,950 | ) | ||||||||
March 31, 2013 | $ | 30,786 | $ | 408,454 | $ | — | $ | 439,240 |
March 31, 2013 | December 31, 2012 | ||||||||||||||||
Range of Life -Years | Gross Amount | Accumulated Amortization | Gross Amount | Accumulated Amortization | |||||||||||||
Amortized intangible assets: | |||||||||||||||||
Revenue sharing programs (RSPs) | Up to 30 | $ | 293,700 | $ | (57,313 | ) | $ | 293,700 | $ | (54,638 | ) | ||||||
Customer lists/relationships | 10-15 | 91,306 | (12,088 | ) | 102,806 | (21,727 | ) | ||||||||||
Patents and technology | 7-14 | 41,972 | (9,261 | ) | 41,972 | (7,758 | ) | ||||||||||
Trademarks/trade names | 5-30 | 11,950 | (6,930 | ) | 12,750 | (7,497 | ) | ||||||||||
Other | Up to 15 | 12,692 | (7,202 | ) | 12,692 | (6,927 | ) | ||||||||||
451,620 | (92,794 | ) | 463,920 | (98,547 | ) | ||||||||||||
Unamortized intangible asset: | |||||||||||||||||
Trade name | 10,000 | 10,000 | |||||||||||||||
Foreign currency translation | 6,837 | — | 8,599 | — | |||||||||||||
Other intangible assets | $ | 468,457 | $ | (92,794 | ) | $ | 482,519 | $ | (98,547 | ) |
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March 31, 2013 | December 31, 2012 | |||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||
3.375% Convertible Notes | $ | 55,636 | $ | 61,240 | $ | 55,636 | $ | 57,977 | ||||||||
Unamortized debt discount – 3.375% Convertible Notes | (2,540 | ) | — | (3,122 | ) | — | ||||||||||
Revolving credit agreement | 604,100 | 614,965 | 589,200 | 599,172 | ||||||||||||
Borrowings under lines of credit and overdrafts | 12,095 | 12,095 | 3,380 | 3,380 | ||||||||||||
Foreign bank borrowings | 810 | 812 | 945 | 947 | ||||||||||||
Other | 589 | 587 | 574 | 574 | ||||||||||||
670,690 | 689,699 | 646,613 | 662,050 | |||||||||||||
Less current maturities | (66,320 | ) | (4,494 | ) | ||||||||||||
Long-term debt | $ | 604,370 | $ | 642,119 |
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March 31, 2013 | December 31, 2012 | ||||||||||||||
Asset Derivatives | Liability Derivatives | Asset Derivatives | Liability Derivatives | ||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||
Interest rate contracts | $ | — | $ | (1,551 | ) | $ | — | $ | (1,818 | ) | |||||
Foreign exchange contracts | 1,293 | — | 945 | — | |||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Foreign exchange contracts | 35 | (1,609 | ) | 2,370 | (152 | ) | |||||||||
Total derivatives | $ | 1,328 | $ | (3,160 | ) | $ | 3,315 | $ | (1,970 | ) |
Three months ended March 31, | |||||||
2013 | 2012 | ||||||
Cash flow hedges: | |||||||
Interest rate contracts | $ | 156 | $ | — | |||
Foreign exchange contracts | 271 | 236 | |||||
$ | 427 | $ | 236 |
Three months ended March 31, | |||||||
2013 | 2012 | ||||||
Foreign exchange contracts | $ | (3,906 | ) | $ | 1,057 |
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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) | |||||||||||
March 31, 2013 | |||||||||||||||
Asset derivatives | $ | 1,328 | $ | — | $ | 1,328 | $ | — | |||||||
Liability derivatives | (3,160 | ) | — | (3,160 | ) | — | |||||||||
Bank acceptances | 3,151 | — | 3,151 | — | |||||||||||
Rabbi trust assets | 1,896 | 1,896 | — | — | |||||||||||
$ | 3,215 | $ | 1,896 | $ | 1,319 | $ | — | ||||||||
December 31, 2012 | |||||||||||||||
Asset derivatives | $ | 3,315 | $ | — | $ | 3,315 | $ | — | |||||||
Liability derivatives | (1,970 | ) | — | (1,970 | ) | — | |||||||||
Bank acceptances | 3,441 | — | 3,441 | — | |||||||||||
Rabbi trust assets | 1,831 | 1,831 | — | — | |||||||||||
$ | 6,617 | $ | 1,831 | $ | 4,786 | $ | — |
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Three months ended March 31, | |||||||
Pensions | 2013 | 2012 | |||||
Service cost | $ | 1,984 | $ | 1,613 | |||
Interest cost | 4,987 | 5,322 | |||||
Expected return on plan assets | (8,276 | ) | (8,033 | ) | |||
Amortization of prior service cost | 203 | 211 | |||||
Recognized losses | 4,075 | 2,759 | |||||
Curtailment loss | 199 | — | |||||
Net periodic benefit cost | $ | 3,172 | $ | 1,872 | |||
Three months ended March 31, | |||||||
Other Postretirement Benefits | 2013 | 2012 | |||||
Service cost | $ | 77 | $ | 77 | |||
Interest cost | 543 | 680 | |||||
Amortization of prior service credit | (395 | ) | (396 | ) | |||
Recognized losses | 290 | 286 | |||||
Net periodic benefit cost | $ | 515 | $ | 647 |
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Gains and Losses on Cash Flow Hedges | Pension and Other Postretirement Benefit Items | Foreign Currency Items | Total | ||||||||||||
January 1, 2013 | $ | (432 | ) | $ | (146,441 | ) | $ | 80,121 | $ | (66,752 | ) | ||||
Other comprehensive income before reclassifications to consolidated statements of income | 525 | (388 | ) | (14,505 | ) | (14,368 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income to the consolidated statements of income | (98 | ) | 2,798 | — | 2,700 | ||||||||||
Net current-period other comprehensive income | 427 | 2,410 | (14,505 | ) | (11,668 | ) | |||||||||
March 31, 2013 | $ | (5 | ) | $ | (144,031 | ) | $ | 65,616 | $ | (78,420 | ) |
Details about Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income | Affected Line Item in the Consolidated Statements of Income | ||||
Gains and losses on cash flow hedges | ||||||
Interest rate contracts | $ | (199 | ) | Interest expense | ||
Foreign exchange contracts | 284 | Net sales | ||||
85 | Total before tax | |||||
13 | Tax benefit | |||||
$ | 98 | Net of tax | ||||
Pension and other postretirement benefit items | ||||||
Amortization of prior-service credits | $ | 192 | (A) | |||
Amortization of actuarial losses | (4,365 | ) | (A) | |||
Curtailment | (199 | ) | (A) | |||
(4,372 | ) | Total before tax | ||||
1,574 | Tax benefit | |||||
(2,798 | ) | Net of tax | ||||
Total reclassifications in the period | $ | (2,700 | ) |
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Three months ended March 31, | |||||||
2013 | 2012 | ||||||
Net sales | |||||||
Aerospace | $ | 98,045 | $ | 97,250 | |||
Industrial | 165,502 | 125,545 | |||||
Intersegment sales | (2 | ) | — | ||||
Total net sales | $ | 263,545 | $ | 222,795 | |||
Operating profit | |||||||
Aerospace | $ | 10,346 | $ | 12,654 | |||
Industrial | 14,609 | 11,964 | |||||
Total operating profit | 24,955 | 24,618 | |||||
Interest expense | 4,357 | 2,368 | |||||
Other expense (income), net | 966 | 859 | |||||
Income from continuing operations before income taxes | $ | 19,632 | $ | 21,391 |
March 31, 2013 | December 31, 2012 | ||||||
Assets | |||||||
Aerospace | $ | 531,920 | $ | 533,465 | |||
Industrial | 907,505 | 907,124 | |||||
Other (A) | 436,183 | 428,007 | |||||
Total assets | $ | 1,875,608 | $ | 1,868,596 |
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Three months ended March 31, | |||||||
2013 | 2012 | ||||||
Net sales | $ | 75,821 | $ | 80,301 | |||
(Loss) income before income taxes | (1,778 | ) | 8,401 | ||||
Income tax expense | 183 | 3,017 | |||||
(Loss) income from operations of discontinued businesses, net of income taxes | (1,961 | ) | 5,384 | ||||
Loss on transaction | — | (780 | ) | ||||
Income tax benefit on loss on sale | — | 13 | |||||
Loss on the sale of businesses | — | (767 | ) | ||||
(Loss) income from discontinued operations, net of income taxes | $ | (1,961 | ) | $ | 4,617 |
Assets | |||
Accounts receivable, less allowance of $801 | $ | 38,752 | |
Inventories | 47,408 | ||
Prepaid expenses and other current assets | 2,179 | ||
Property, plant and equipment, net | 17,861 | ||
Goodwill | 134,715 | ||
Other assets | 396 | ||
Assets held for sale | $ | 241,311 | |
Liabilities | |||
Accounts payable | $ | 20,676 | |
Accrued liabilities | 2,964 | ||
Accrued retirement benefits | 66 | ||
Other liabilities | 103 | ||
Liabilities held for sale | $ | 23,809 |
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(Unaudited Pro Forma) Three months ended March 31, 2012 | |||
Net sales | $ | 262,120 | |
Income from continuing operations | 18,897 | ||
Net income | 23,514 | ||
Per common share: | |||
Basic: | |||
Income from continuing operations | $ | 0.35 | |
Net income | $ | 0.43 | |
Diluted: | |||
Income from continuing operations | $ | 0.34 | |
Net income | $ | 0.42 |
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March 31, 2013 | December 31, 2012 | ||||||
Finished goods | $ | 73,974 | $ | 126,139 | |||
Work-in-process | 61,495 | 56,186 | |||||
Raw material and supplies | 43,673 | 43,895 | |||||
$ | 179,142 | $ | 226,220 |
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Aerospace | Industrial | Other | Total Company | ||||||||||||
January 1, 2013 | $ | 30,786 | $ | 414,244 | $ | 134,875 | $ | 579,905 | |||||||
Transfer to assets held for sale | — | — | (134,715 | ) | (134,715 | ) | |||||||||
Foreign currency translation | — | (5,790 | ) | (160 | ) | (5,950 | ) | ||||||||
March 31, 2013 | $ | 30,786 | $ | 408,454 | $ | — | $ | 439,240 |
March 31, 2013 | December 31, 2012 | ||||||||||||||||
Range of Life -Years | Gross Amount | Accumulated Amortization | Gross Amount | Accumulated Amortization | |||||||||||||
Amortized intangible assets: | |||||||||||||||||
Revenue sharing programs (RSPs) | Up to 30 | $ | 293,700 | $ | (57,313 | ) | $ | 293,700 | $ | (54,638 | ) | ||||||
Customer lists/relationships | 10-15 | 91,306 | (12,088 | ) | 102,806 | (21,727 | ) | ||||||||||
Patents and technology | 7-14 | 41,972 | (9,261 | ) | 41,972 | (7,758 | ) | ||||||||||
Trademarks/trade names | 5-30 | 11,950 | (6,930 | ) | 12,750 | (7,497 | ) | ||||||||||
Other | Up to 15 | 12,692 | (7,202 | ) | 12,692 | (6,927 | ) | ||||||||||
451,620 | (92,794 | ) | 463,920 | (98,547 | ) | ||||||||||||
Unamortized intangible asset: | |||||||||||||||||
Trade name | 10,000 | 10,000 | |||||||||||||||
Foreign currency translation | 6,837 | — | 8,599 | — | |||||||||||||
Other intangible assets | $ | 468,457 | $ | (92,794 | ) | $ | 482,519 | $ | (98,547 | ) |
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March 31, 2013 | December 31, 2012 | |||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||
3.375% Convertible Notes | $ | 55,636 | $ | 61,240 | $ | 55,636 | $ | 57,977 | ||||||||
Unamortized debt discount – 3.375% Convertible Notes | (2,540 | ) | — | (3,122 | ) | — | ||||||||||
Revolving credit agreement | 604,100 | 614,965 | 589,200 | 599,172 | ||||||||||||
Borrowings under lines of credit and overdrafts | 12,095 | 12,095 | 3,380 | 3,380 | ||||||||||||
Foreign bank borrowings | 810 | 812 | 945 | 947 | ||||||||||||
Other | 589 | 587 | 574 | 574 | ||||||||||||
670,690 | 689,699 | 646,613 | 662,050 | |||||||||||||
Less current maturities | (66,320 | ) | (4,494 | ) | ||||||||||||
Long-term debt | $ | 604,370 | $ | 642,119 |
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Three months ended March 31, | |||||||
2013 | 2012 | ||||||
Foreign exchange contracts | $ | (3,906 | ) | $ | 1,057 |
March 31, 2013 | December 31, 2012 | ||||||||||||||
Asset Derivatives | Liability Derivatives | Asset Derivatives | Liability Derivatives | ||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||
Interest rate contracts | $ | — | $ | (1,551 | ) | $ | — | $ | (1,818 | ) | |||||
Foreign exchange contracts | 1,293 | — | 945 | — | |||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Foreign exchange contracts | 35 | (1,609 | ) | 2,370 | (152 | ) | |||||||||
Total derivatives | $ | 1,328 | $ | (3,160 | ) | $ | 3,315 | $ | (1,970 | ) |
Three months ended March 31, | |||||||
2013 | 2012 | ||||||
Cash flow hedges: | |||||||
Interest rate contracts | $ | 156 | $ | — | |||
Foreign exchange contracts | 271 | 236 | |||||
$ | 427 | $ | 236 |
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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) | |||||||||||
March 31, 2013 | |||||||||||||||
Asset derivatives | $ | 1,328 | $ | — | $ | 1,328 | $ | — | |||||||
Liability derivatives | (3,160 | ) | — | (3,160 | ) | — | |||||||||
Bank acceptances | 3,151 | — | 3,151 | — | |||||||||||
Rabbi trust assets | 1,896 | 1,896 | — | — | |||||||||||
$ | 3,215 | $ | 1,896 | $ | 1,319 | $ | — | ||||||||
December 31, 2012 | |||||||||||||||
Asset derivatives | $ | 3,315 | $ | — | $ | 3,315 | $ | — | |||||||
Liability derivatives | (1,970 | ) | — | (1,970 | ) | — | |||||||||
Bank acceptances | 3,441 | — | 3,441 | — | |||||||||||
Rabbi trust assets | 1,831 | 1,831 | — | — | |||||||||||
$ | 6,617 | $ | 1,831 | $ | 4,786 | $ | — |
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Three months ended March 31, | |||||||
Pensions | 2013 | 2012 | |||||
Service cost | $ | 1,984 | $ | 1,613 | |||
Interest cost | 4,987 | 5,322 | |||||
Expected return on plan assets | (8,276 | ) | (8,033 | ) | |||
Amortization of prior service cost | 203 | 211 | |||||
Recognized losses | 4,075 | 2,759 | |||||
Curtailment loss | 199 | — | |||||
Net periodic benefit cost | $ | 3,172 | $ | 1,872 | |||
Three months ended March 31, | |||||||
Other Postretirement Benefits | 2013 | 2012 | |||||
Service cost | $ | 77 | $ | 77 | |||
Interest cost | 543 | 680 | |||||
Amortization of prior service credit | (395 | ) | (396 | ) | |||
Recognized losses | 290 | 286 | |||||
Net periodic benefit cost | $ | 515 | $ | 647 |
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Gains and Losses on Cash Flow Hedges | Pension and Other Postretirement Benefit Items | Foreign Currency Items | Total | ||||||||||||
January 1, 2013 | $ | (432 | ) | $ | (146,441 | ) | $ | 80,121 | $ | (66,752 | ) | ||||
Other comprehensive income before reclassifications to consolidated statements of income | 525 | (388 | ) | (14,505 | ) | (14,368 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income to the consolidated statements of income | (98 | ) | 2,798 | — | 2,700 | ||||||||||
Net current-period other comprehensive income | 427 | 2,410 | (14,505 | ) | (11,668 | ) | |||||||||
March 31, 2013 | $ | (5 | ) | $ | (144,031 | ) | $ | 65,616 | $ | (78,420 | ) |
Details about Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income | Affected Line Item in the Consolidated Statements of Income | ||||
Gains and losses on cash flow hedges | ||||||
Interest rate contracts | $ | (199 | ) | Interest expense | ||
Foreign exchange contracts | 284 | Net sales | ||||
85 | Total before tax | |||||
13 | Tax benefit | |||||
$ | 98 | Net of tax | ||||
Pension and other postretirement benefit items | ||||||
Amortization of prior-service credits | $ | 192 | (A) | |||
Amortization of actuarial losses | (4,365 | ) | (A) | |||
Curtailment | (199 | ) | (A) | |||
(4,372 | ) | Total before tax | ||||
1,574 | Tax benefit | |||||
(2,798 | ) | Net of tax | ||||
Total reclassifications in the period | $ | (2,700 | ) |
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Three months ended March 31, | |||||||
2013 | 2012 | ||||||
Net sales | |||||||
Aerospace | $ | 98,045 | $ | 97,250 | |||
Industrial | 165,502 | 125,545 | |||||
Intersegment sales | (2 | ) | — | ||||
Total net sales | $ | 263,545 | $ | 222,795 | |||
Operating profit | |||||||
Aerospace | $ | 10,346 | $ | 12,654 | |||
Industrial | 14,609 | 11,964 | |||||
Total operating profit | 24,955 | 24,618 | |||||
Interest expense | 4,357 | 2,368 | |||||
Other expense (income), net | 966 | 859 | |||||
Income from continuing operations before income taxes | $ | 19,632 | $ | 21,391 |
March 31, 2013 | December 31, 2012 | ||||||
Assets | |||||||
Aerospace | $ | 531,920 | $ | 533,465 | |||
Industrial | 907,505 | 907,124 | |||||
Other (A) | 436,183 | 428,007 | |||||
Total assets | $ | 1,875,608 | $ | 1,868,596 |
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