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Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Net sales | $ | — | $ | 26,751 | $ | — | $ | 86,028 | |||||||
Loss before income taxes | (2,234 | ) | (191 | ) | (2,234 | ) | (742 | ) | |||||||
Income tax expense | — | (744 | ) | — | (1,048 | ) | |||||||||
Loss from operations of discontinued businesses, net of income taxes | (2,234 | ) | (935 | ) | (2,234 | ) | (1,790 | ) | |||||||
Loss on transaction | (21 | ) | (1,145 | ) | (788 | ) | (2,215 | ) | |||||||
Income tax benefit on loss on sale | 6 | 434 | 39 | 840 | |||||||||||
Loss on the sale of businesses | (15 | ) | (711 | ) | (749 | ) | (1,375 | ) | |||||||
Loss from discontinued operations, net of income taxes | $ | (2,249 | ) | $ | (1,646 | ) | $ | (2,983 | ) | $ | (3,165 | ) |
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Accounts Receivable | $ | 42,724 | |
Inventory | 13,546 | ||
Other current assets | 3,988 | ||
Property, plant and equipment | 16,481 | ||
Other noncurrent assets | 2,841 | ||
Intangible assets (Note 6) | 126,600 | ||
Goodwill (Note 6) | 203,988 | ||
Total assets acquired | 410,168 | ||
Current liabilities | (22,768 | ) | |
Other liabilities | (4,361 | ) | |
Deferred taxes | (40,785 | ) | |
Debt assumed | (45,537 | ) | |
Total liabilities assumed | (113,451 | ) | |
Net assets acquired | $ | 296,717 | |
(Unaudited Pro Forma) Three months ended September 30, | (Unaudited Pro Forma) Nine months ended September 30, | ||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||
Net sales | 328,880 | 337,796 | 1,004,098 | 994,098 | |||||||||
Income from continuing operations | 24,164 | 25,522 | 75,171 | 55,734 | |||||||||
Net income | 21,915 | 23,876 | 72,188 | 52,569 | |||||||||
Per common share: | |||||||||||||
Basic: | |||||||||||||
Income from continuing operations | $ | 0.44 | $ | 0.46 | $ | 1.38 | $ | 1.01 | |||||
Net income | $ | 0.40 | $ | 0.43 | $ | 1.32 | $ | 0.95 | |||||
Diluted: | |||||||||||||
Income from continuing operations | $ | 0.44 | $ | 0.45 | $ | 1.36 | $ | 0.99 | |||||
Net income | $ | 0.40 | $ | 0.42 | $ | 1.31 | $ | 0.94 |
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September 30, 2012 | December 31, 2011 | ||||||
Finished goods | $ | 124,384 | $ | 121,984 | |||
Work-in-process | 60,797 | 60,557 | |||||
Raw material and supplies | 45,016 | 33,979 | |||||
$ | 230,197 | $ | 216,520 |
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Aerospace | Industrial | Distribution | Total Company | ||||||||||||
January 1, 2012 | $ | 30,786 | $ | 192,544 | $ | 142,774 | $ | 366,104 | |||||||
Goodwill acquired | — | 203,988 | — | 203,988 | |||||||||||
Foreign currency translation | — | 7,034 | 377 | 7,411 | |||||||||||
September 30, 2012 | $ | 30,786 | $ | 403,566 | $ | 143,151 | $ | 577,503 |
September 30, 2012 | December 31, 2011 | ||||||||||||||||
Range of Life -Years | Gross Amount | Accumulated Amortization | Gross Amount | Accumulated Amortization | |||||||||||||
Amortized intangible assets: | |||||||||||||||||
Revenue sharing programs (RSPs) | Up to 30 | $ | 293,700 | $ | (52,072 | ) | $ | 293,700 | $ | (46,367 | ) | ||||||
Customer lists/relationships | 10-15 | 102,806 | (19,635 | ) | 23,506 | (17,292 | ) | ||||||||||
Patents and technology | 7-14 | 41,972 | (6,283 | ) | 6,572 | (5,211 | ) | ||||||||||
Trademarks/trade names | 5-30 | 12,750 | (7,317 | ) | 12,050 | (6,618 | ) | ||||||||||
Other | Up to 15 | 12,692 | (5,866 | ) | 11,492 | (4,454 | ) | ||||||||||
463,920 | (91,173 | ) | 347,320 | (79,942 | ) | ||||||||||||
Unamortized intangible asset: | |||||||||||||||||
Trade name | 10,000 | — | — | — | |||||||||||||
Foreign currency translation | 6,798 | — | 4,714 | — | |||||||||||||
Other intangible assets | $ | 480,718 | $ | (91,173 | ) | $ | 352,034 | $ | (79,942 | ) |
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September 30, 2012 | December 31, 2011 | |||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||
3.375% Convertible Notes | $ | 55,636 | $ | 60,239 | $ | 55,636 | $ | 59,038 | ||||||||
Unamortized debt discount – 3.375% Convertible Notes | (3,692 | ) | — | (5,333 | ) | — | ||||||||||
Revolving credit agreement | 625,400 | 626,534 | 281,900 | 270,288 | ||||||||||||
Borrowings under lines of credit and overdrafts | 7,675 | 7,675 | 12,364 | 12,364 | ||||||||||||
Foreign bank borrowings | 1,080 | 1,080 | 1,485 | 1,642 | ||||||||||||
Other | 576 | 576 | — | — | ||||||||||||
686,675 | 696,104 | 346,052 | 343,332 | |||||||||||||
Less current maturities | (8,625 | ) | (12,904 | ) | ||||||||||||
Long-term debt | $ | 678,050 | $ | 333,148 |
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September 30, 2012 | December 31, 2011 | ||||||||||||||
Asset Derivatives | Liability Derivatives | Asset Derivatives | Liability Derivatives | ||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||
Interest rate contracts | $ | — | $ | (2,014 | ) | $ | — | $ | — | ||||||
Foreign exchange contracts | 1,563 | — | 276 | — | |||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Foreign exchange contracts | 2,115 | (53 | ) | 28 | (976 | ) | |||||||||
Total derivatives | $ | 3,678 | $ | (2,067 | ) | $ | 304 | $ | (976 | ) |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Cash flow hedges: | |||||||||||||||
Interest rate contracts | $ | (551 | ) | $ | — | $ | (1,250 | ) | 422 | ||||||
Foreign exchange contracts | 646 | (19 | ) | 948 | (391 | ) | |||||||||
$ | 95 | $ | (19 | ) | $ | (302 | ) | $ | 31 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Foreign exchange contracts | $ | 2,380 | $ | (3,144 | ) | $ | 3,305 | $ | (4,055 | ) |
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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) | |||||||||||
September 30, 2012 | |||||||||||||||
Asset derivatives | $ | 3,678 | $ | — | $ | 3,678 | $ | — | |||||||
Liability derivatives | (2,067 | ) | — | (2,067 | ) | — | |||||||||
Bank acceptances | 3,343 | — | 3,343 | — | |||||||||||
Rabbi trust assets | 1,816 | 1,816 | — | — | |||||||||||
$ | 6,770 | $ | 1,816 | $ | 4,954 | $ | — | ||||||||
December 31, 2011 | |||||||||||||||
Asset derivatives | $ | 304 | $ | — | $ | 304 | $ | — | |||||||
Liability derivatives | (976 | ) | — | (976 | ) | — | |||||||||
Rabbi trust assets | 1,494 | 1,494 | — | — | |||||||||||
$ | 822 | $ | 1,494 | $ | (672 | ) | $ | — |
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Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
Pensions | 2012 | 2011 | 2012 | 2011 | |||||||||||
Service cost | $ | 1,704 | $ | 1,477 | $ | 4,962 | $ | 4,421 | |||||||
Interest cost | 5,419 | 5,626 | 16,156 | 16,866 | |||||||||||
Expected return on plan assets | (8,216 | ) | (8,030 | ) | (24,506 | ) | (24,060 | ) | |||||||
Amortization of prior service cost | 209 | 280 | 629 | 842 | |||||||||||
Recognized losses | 3,170 | 1,436 | 9,029 | 4,311 | |||||||||||
Settlement loss | 91 | — | 91 | — | |||||||||||
Net periodic benefit cost | $ | 2,377 | $ | 789 | $ | 6,361 | $ | 2,380 | |||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
Other Postretirement Benefits | 2012 | 2011 | 2012 | 2011 | |||||||||||
Service cost | $ | 69 | $ | 70 | $ | 205 | $ | 213 | |||||||
Interest cost | 643 | 712 | 1,902 | 2,136 | |||||||||||
Amortization of prior service credit | (396 | ) | (385 | ) | (1,189 | ) | (1,156 | ) | |||||||
Recognized losses | 269 | 202 | 811 | 606 | |||||||||||
Net periodic benefit cost | $ | 585 | $ | 599 | $ | 1,729 | $ | 1,799 |
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Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Net sales | |||||||||||||||
Aerospace | $ | 98,370 | $ | 98,125 | $ | 289,391 | $ | 283,415 | |||||||
Industrial | 123,812 | 112,476 | 349,404 | 337,910 | |||||||||||
Distribution | 85,719 | 90,260 | 270,999 | 271,903 | |||||||||||
Intersegment sales | (1,842 | ) | (2,218 | ) | (7,217 | ) | (7,159 | ) | |||||||
Total net sales | $ | 306,059 | $ | 298,643 | $ | 902,577 | $ | 886,069 | |||||||
Operating profit | |||||||||||||||
Aerospace | $ | 15,345 | $ | 16,071 | $ | 44,269 | $ | 44,548 | |||||||
Industrial | 7,406 | 10,340 | 28,728 | 32,275 | |||||||||||
Distribution | 6,920 | 7,777 | 23,813 | 21,855 | |||||||||||
Total operating profit | 29,671 | 34,188 | 96,810 | 98,678 | |||||||||||
Interest expense | 3,243 | 1,902 | 8,046 | 7,906 | |||||||||||
Other expense (income), net | 851 | (501 | ) | 1,799 | 228 | ||||||||||
Income from continuing operations before income taxes | $25,577 | $32,787 | $86,965 | $90,544 |
September 30, 2012 | December 31, 2011 | ||||||
Assets | |||||||
Aerospace | $ | 534,807 | $ | 544,943 | |||
Industrial(A) | 879,284 | 453,279 | |||||
Distribution | 284,125 | 278,139 | |||||
Other (B) | 180,663 | 164,004 | |||||
Total assets | $ | 1,878,879 | $ | 1,440,365 |
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Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Net sales | $ | — | $ | 26,751 | $ | — | $ | 86,028 | |||||||
Loss before income taxes | (2,234 | ) | (191 | ) | (2,234 | ) | (742 | ) | |||||||
Income tax expense | — | (744 | ) | — | (1,048 | ) | |||||||||
Loss from operations of discontinued businesses, net of income taxes | (2,234 | ) | (935 | ) | (2,234 | ) | (1,790 | ) | |||||||
Loss on transaction | (21 | ) | (1,145 | ) | (788 | ) | (2,215 | ) | |||||||
Income tax benefit on loss on sale | 6 | 434 | 39 | 840 | |||||||||||
Loss on the sale of businesses | (15 | ) | (711 | ) | (749 | ) | (1,375 | ) | |||||||
Loss from discontinued operations, net of income taxes | $ | (2,249 | ) | $ | (1,646 | ) | $ | (2,983 | ) | $ | (3,165 | ) |
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Accounts Receivable | $ | 42,724 | |
Inventory | 13,546 | ||
Other current assets | 3,988 | ||
Property, plant and equipment | 16,481 | ||
Other noncurrent assets | 2,841 | ||
Intangible assets (Note 6) | 126,600 | ||
Goodwill (Note 6) | 203,988 | ||
Total assets acquired | 410,168 | ||
Current liabilities | (22,768 | ) | |
Other liabilities | (4,361 | ) | |
Deferred taxes | (40,785 | ) | |
Debt assumed | (45,537 | ) | |
Total liabilities assumed | (113,451 | ) | |
Net assets acquired | $ | 296,717 | |
(Unaudited Pro Forma) Three months ended September 30, | (Unaudited Pro Forma) Nine months ended September 30, | ||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||
Net sales | 328,880 | 337,796 | 1,004,098 | 994,098 | |||||||||
Income from continuing operations | 24,164 | 25,522 | 75,171 | 55,734 | |||||||||
Net income | 21,915 | 23,876 | 72,188 | 52,569 | |||||||||
Per common share: | |||||||||||||
Basic: | |||||||||||||
Income from continuing operations | $ | 0.44 | $ | 0.46 | $ | 1.38 | $ | 1.01 | |||||
Net income | $ | 0.40 | $ | 0.43 | $ | 1.32 | $ | 0.95 | |||||
Diluted: | |||||||||||||
Income from continuing operations | $ | 0.44 | $ | 0.45 | $ | 1.36 | $ | 0.99 | |||||
Net income | $ | 0.40 | $ | 0.42 | $ | 1.31 | $ | 0.94 |
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September 30, 2012 | December 31, 2011 | ||||||
Finished goods | $ | 124,384 | $ | 121,984 | |||
Work-in-process | 60,797 | 60,557 | |||||
Raw material and supplies | 45,016 | 33,979 | |||||
$ | 230,197 | $ | 216,520 |
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Aerospace | Industrial | Distribution | Total Company | ||||||||||||
January 1, 2012 | $ | 30,786 | $ | 192,544 | $ | 142,774 | $ | 366,104 | |||||||
Goodwill acquired | — | 203,988 | — | 203,988 | |||||||||||
Foreign currency translation | — | 7,034 | 377 | 7,411 | |||||||||||
September 30, 2012 | $ | 30,786 | $ | 403,566 | $ | 143,151 | $ | 577,503 |
September 30, 2012 | December 31, 2011 | ||||||||||||||||
Range of Life -Years | Gross Amount | Accumulated Amortization | Gross Amount | Accumulated Amortization | |||||||||||||
Amortized intangible assets: | |||||||||||||||||
Revenue sharing programs (RSPs) | Up to 30 | $ | 293,700 | $ | (52,072 | ) | $ | 293,700 | $ | (46,367 | ) | ||||||
Customer lists/relationships | 10-15 | 102,806 | (19,635 | ) | 23,506 | (17,292 | ) | ||||||||||
Patents and technology | 7-14 | 41,972 | (6,283 | ) | 6,572 | (5,211 | ) | ||||||||||
Trademarks/trade names | 5-30 | 12,750 | (7,317 | ) | 12,050 | (6,618 | ) | ||||||||||
Other | Up to 15 | 12,692 | (5,866 | ) | 11,492 | (4,454 | ) | ||||||||||
463,920 | (91,173 | ) | 347,320 | (79,942 | ) | ||||||||||||
Unamortized intangible asset: | |||||||||||||||||
Trade name | 10,000 | — | — | — | |||||||||||||
Foreign currency translation | 6,798 | — | 4,714 | — | |||||||||||||
Other intangible assets | $ | 480,718 | $ | (91,173 | ) | $ | 352,034 | $ | (79,942 | ) |
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September 30, 2012 | December 31, 2011 | |||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||
3.375% Convertible Notes | $ | 55,636 | $ | 60,239 | $ | 55,636 | $ | 59,038 | ||||||||
Unamortized debt discount – 3.375% Convertible Notes | (3,692 | ) | — | (5,333 | ) | — | ||||||||||
Revolving credit agreement | 625,400 | 626,534 | 281,900 | 270,288 | ||||||||||||
Borrowings under lines of credit and overdrafts | 7,675 | 7,675 | 12,364 | 12,364 | ||||||||||||
Foreign bank borrowings | 1,080 | 1,080 | 1,485 | 1,642 | ||||||||||||
Other | 576 | 576 | — | — | ||||||||||||
686,675 | 696,104 | 346,052 | 343,332 | |||||||||||||
Less current maturities | (8,625 | ) | (12,904 | ) | ||||||||||||
Long-term debt | $ | 678,050 | $ | 333,148 |
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Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Foreign exchange contracts | $ | 2,380 | $ | (3,144 | ) | $ | 3,305 | $ | (4,055 | ) |
September 30, 2012 | December 31, 2011 | ||||||||||||||
Asset Derivatives | Liability Derivatives | Asset Derivatives | Liability Derivatives | ||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||
Interest rate contracts | $ | — | $ | (2,014 | ) | $ | — | $ | — | ||||||
Foreign exchange contracts | 1,563 | — | 276 | — | |||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Foreign exchange contracts | 2,115 | (53 | ) | 28 | (976 | ) | |||||||||
Total derivatives | $ | 3,678 | $ | (2,067 | ) | $ | 304 | $ | (976 | ) |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Cash flow hedges: | |||||||||||||||
Interest rate contracts | $ | (551 | ) | $ | — | $ | (1,250 | ) | 422 | ||||||
Foreign exchange contracts | 646 | (19 | ) | 948 | (391 | ) | |||||||||
$ | 95 | $ | (19 | ) | $ | (302 | ) | $ | 31 |
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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) | |||||||||||
September 30, 2012 | |||||||||||||||
Asset derivatives | $ | 3,678 | $ | — | $ | 3,678 | $ | — | |||||||
Liability derivatives | (2,067 | ) | — | (2,067 | ) | — | |||||||||
Bank acceptances | 3,343 | — | 3,343 | — | |||||||||||
Rabbi trust assets | 1,816 | 1,816 | — | — | |||||||||||
$ | 6,770 | $ | 1,816 | $ | 4,954 | $ | — | ||||||||
December 31, 2011 | |||||||||||||||
Asset derivatives | $ | 304 | $ | — | $ | 304 | $ | — | |||||||
Liability derivatives | (976 | ) | — | (976 | ) | — | |||||||||
Rabbi trust assets | 1,494 | 1,494 | — | — | |||||||||||
$ | 822 | $ | 1,494 | $ | (672 | ) | $ | — |
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Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
Pensions | 2012 | 2011 | 2012 | 2011 | |||||||||||
Service cost | $ | 1,704 | $ | 1,477 | $ | 4,962 | $ | 4,421 | |||||||
Interest cost | 5,419 | 5,626 | 16,156 | 16,866 | |||||||||||
Expected return on plan assets | (8,216 | ) | (8,030 | ) | (24,506 | ) | (24,060 | ) | |||||||
Amortization of prior service cost | 209 | 280 | 629 | 842 | |||||||||||
Recognized losses | 3,170 | 1,436 | 9,029 | 4,311 | |||||||||||
Settlement loss | 91 | — | 91 | — | |||||||||||
Net periodic benefit cost | $ | 2,377 | $ | 789 | $ | 6,361 | $ | 2,380 | |||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
Other Postretirement Benefits | 2012 | 2011 | 2012 | 2011 | |||||||||||
Service cost | $ | 69 | $ | 70 | $ | 205 | $ | 213 | |||||||
Interest cost | 643 | 712 | 1,902 | 2,136 | |||||||||||
Amortization of prior service credit | (396 | ) | (385 | ) | (1,189 | ) | (1,156 | ) | |||||||
Recognized losses | 269 | 202 | 811 | 606 | |||||||||||
Net periodic benefit cost | $ | 585 | $ | 599 | $ | 1,729 | $ | 1,799 |
|
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Net sales | |||||||||||||||
Aerospace | $ | 98,370 | $ | 98,125 | $ | 289,391 | $ | 283,415 | |||||||
Industrial | 123,812 | 112,476 | 349,404 | 337,910 | |||||||||||
Distribution | 85,719 | 90,260 | 270,999 | 271,903 | |||||||||||
Intersegment sales | (1,842 | ) | (2,218 | ) | (7,217 | ) | (7,159 | ) | |||||||
Total net sales | $ | 306,059 | $ | 298,643 | $ | 902,577 | $ | 886,069 | |||||||
Operating profit | |||||||||||||||
Aerospace | $ | 15,345 | $ | 16,071 | $ | 44,269 | $ | 44,548 | |||||||
Industrial | 7,406 | 10,340 | 28,728 | 32,275 | |||||||||||
Distribution | 6,920 | 7,777 | 23,813 | 21,855 | |||||||||||
Total operating profit | 29,671 | 34,188 | 96,810 | 98,678 | |||||||||||
Interest expense | 3,243 | 1,902 | 8,046 | 7,906 | |||||||||||
Other expense (income), net | 851 | (501 | ) | 1,799 | 228 | ||||||||||
Income from continuing operations before income taxes | $25,577 | $32,787 | $86,965 | $90,544 |
September 30, 2012 | December 31, 2011 | ||||||
Assets | |||||||
Aerospace | $ | 534,807 | $ | 544,943 | |||
Industrial(A) | 879,284 | 453,279 | |||||
Distribution | 284,125 | 278,139 | |||||
Other (B) | 180,663 | 164,004 | |||||
Total assets | $ | 1,878,879 | $ | 1,440,365 |
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