CURTISS WRIGHT CORP, 10-Q filed on 7/30/2015
Quarterly Report
Document and Entity Information
6 Months Ended
Jun. 30, 2015
Document And Entity Information [Abstract]
 
Entity Registrant Name
Curtiss Wright Corporation 
Entity Central Index Key
0000026324 
Current Fiscal Year End Date
--12-31 
Entity Filer Category
Large Accelerated Filer 
Document Type
10-Q 
Document Period End Date
Jun. 30, 2015 
Document Fiscal Year Focus
2015 
Document Fiscal Period Focus
Q2 
Amendment Flag
false 
Entity common stock shares outstanding
46,924,807 
Entity well known seasoned issuer
Yes 
Entity Voluntary Filers
No 
Entity Current Reporting Status
Yes 
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Net sales
 
 
 
 
Product sales
$ 439,871 
$ 457,873 
$ 885,558 
$ 894,100 
Service sales
105,323 
111,325 
205,835 
218,057 
Total net sales
545,194 
569,198 
1,091,393 
1,112,157 
Cost of sales
 
 
 
 
Cost of product sales
287,685 
299,525 
580,694 
588,459 
Cost of service sales
75,158 
71,442 
137,252 
140,853 
Total cost of sales
362,843 
370,967 
717,946 
729,312 
Gross profit
182,351 
198,231 
373,447 
382,845 
Research and development expenses
(15,321)
(17,364)
(30,583)
(34,241)
Selling expenses
(29,105)
(32,099)
(60,193)
(64,730)
General and administrative expenses
(72,483)
(76,609)
(144,394)
(150,681)
Operating income
65,442 
72,159 
138,277 
133,193 
Interest expense
(8,985)
(8,986)
(17,981)
(18,041)
Other income, net
(37)
(23)
444 
89 
Earnings from continuing operations before income taxes
56,420 
63,150 
120,740 
115,241 
Provision for income taxes
(16,299)
(20,141)
(37,396)
(35,802)
Earnings from continuing operations
40,121 
43,009 
83,344 
79,439 
Loss from discontinued operations, net of taxes
(14,384)
(6,618)
(41,616)
(7,884)
Net earnings
$ 25,737 
$ 36,391 
$ 41,728 
$ 71,555 
Basic earnings per share
 
 
 
 
Earnings from continuing operations (usd per share)
$ 0.85 
$ 0.90 
$ 1.76 
$ 1.65 
Earnings from discontinued operations (usd per share)
$ (0.31)
$ (0.14)
$ (0.88)
$ (0.16)
Total, Basic earnings per share (usd per share)
$ 0.54 
$ 0.76 
$ 0.88 
$ 1.49 
Diluted earnings per share
 
 
 
 
Earnings from continuing operations (usd per share)
$ 0.83 
$ 0.87 
$ 1.72 
$ 1.62 
Earnings from discontinued operations (usd per share)
$ (0.30)
$ (0.13)
$ (0.86)
$ (0.16)
Total, Diluted earnings per share (usd per share)
$ 0.53 
$ 0.74 
$ 0.86 
$ 1.46 
Dividends per share
$ 0.13 
$ 0.13 
$ 0.26 
$ 0.26 
Weighted average shares outstanding:
 
 
 
 
Basic (shares)
47,224 
48,175 
47,466 
48,055 
Diluted (shares)
48,258 
49,239 
48,487 
49,160 
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Statement of Comprehensive Income [Abstract]
 
 
 
 
Net earnings
$ 25,737 
$ 36,391 
$ 41,728 
$ 71,555 
Other comprehensive income
 
 
 
 
Foreign currency translation, net of tax (1)
31,881 1
17,737 1
(24,592)1
7,820 1
Pension and postretirement adjustments, net of tax (2)
2,366 2
914 2
4,769 2
1,700 2
Other comprehensive income (loss), net of tax
34,247 
18,651 
(19,823)
9,520 
Comprehensive income
$ 59,984 
$ 55,042 
$ 21,905 
$ 81,075 
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parentheticals) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Statement of Comprehensive Income [Abstract]
 
 
 
 
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax
$ 0.7 
$ 0.4 
$ 2.9 
$ 0.7 
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Tax, Portion Attributable to Parent
$ (1.4)
$ (0.5)
$ (2.7)
$ (0.9)
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Current Assets:
 
 
Cash and cash equivalents
$ 244,980 
$ 450,116 
Receivables, net
523,212 
495,480 
Inventories, net
400,670 
388,670 
Deferred tax assets, net
43,156 
44,311 
Assets held for sale
14,761 
147,347 
Income taxes receivable
75,894 
5,583 
Other current assets
31,974 
39,568 
Total current assets
1,334,647 
1,571,075 
Property, plant, and equipment, net
433,747 
458,919 
Goodwill
991,283 
998,506 
Other intangible assets, net
333,992 
349,227 
Other assets
18,942 
21,784 
Total assets
3,112,611 
3,399,511 
Current liabilities:
 
 
Current portion of long-term debt and short-term debt
1,039 
1,069 
Accounts payable
138,134 
152,266 
Accrued expenses
112,304 
145,938 
Income taxes payable
6,137 
22,472 
Deferred revenue
154,578 
176,693 
Liabilities held for sale
1,750 
35,392 
Other current liabilities
51,199 
38,163 
Total current liabilities
465,141 
571,993 
Long-term debt
948,957 
953,279 
Deferred tax liabilities, net
105,844 
51,554 
Accrued pension and other postretirement benefit costs
71,463 
226,687 
Long-term portion of environmental reserves
14,606 
14,911 
Other liabilities
98,000 
102,654 
Total liabilities
1,704,011 
1,921,078 
Stockholders' Equity
 
 
Common stock, $1 par value, 100,000,000 shares authorized at June 30, 2015 and December 31, 2014; 49,189,702 shares issued at June 30, 2015 and December 31, 2014; outstanding shares were 46,924,807 at June 30, 2015 and 47,904,518 at December 31, 2014
49,190 
49,190 
Additional paid in capital
154,541 
158,043 
Retained earnings
1,498,742 
1,469,306 
Accumulated other comprehensive loss
(148,234)
(128,411)
Common treasury stock, at cost (2,264,895 shares at June 30, 2015 and 1,285,184 shares at December 31, 2014)
(145,639)
(69,695)
Total stockholders' equity
1,408,600 
1,478,433 
Total liabilities and stockholders' equity
$ 3,112,611 
$ 3,399,511 
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
Jun. 30, 2015
Dec. 31, 2014
Statement of Financial Position [Abstract]
 
 
Common stock, par value (usd per share)
$ 1 
$ 1 
Common Stock, Shares Authorized
100,000,000 
100,000,000 
Common Stock, Shares, Issued
49,189,702 
49,189,702 
Common Stock, Shares, Outstanding
46,924,807 
47,904,518 
Treasury Stock, Shares
2,264,895 
1,285,184 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Cash flows from operating activities:
 
 
Net earnings
$ 41,728 
$ 71,555 
Adjustments to reconcile net earnings to net cash provided by (used for) operating activities:
 
 
Depreciation and amortization
51,538 
61,386 
(Gain)/loss on sale of businesses
13,498 
7,106 
(Gain)/loss on fixed asset disposals
(669)
389 
Deferred income taxes
17,038 
10,695 
Share-based compensation
4,626 
4,286 
Impairment of Long-Lived Assets to be Disposed of
40,813 
0 
Change in operating assets and liabilities, net of businesses acquired and divested:
 
 
Accounts receivable, net
(29,713)
(19,801)
Inventories, net
(15,889)
(29,604)
Progress payments
(2,255)
(7,164)
Accounts payable and accrued expenses
(56,781)
(26,567)
Deferred revenue
(22,115)
20,430 
Income taxes payable
(30,962)
1,924 
Net pension and postretirement liabilities
(138,696)
(15,545)
Other current and long-term assets and liabilities
16,569 
5,327 
Net cash provided by (used for) operating activities
(111,270)
84,417 
Cash flows from investing activities:
 
 
Proceeds from sales and disposals of long lived assets
837 
328 
Proceeds from divestitures, net of cash sold and transaction costs
22,730 
52,098 
Additions to property, plant, and equipment
(15,689)
(35,996)
Acquisition of businesses, net of cash acquired
(13,228)
(34,362)
Additional consideration of prior period acquisitions
(436)
(230)
Net cash used for investing activities
(5,786)
(18,162)
Cash flows from financing activities:
 
 
Borrowings under revolving credit facility
27,394 
362,563 
Payment of revolving credit facility
(27,425)
(413,203)
Repurchases of common stock
(97,114)
(23,911)
Proceeds from share-based compensation
9,253 
26,476 
Dividends paid
(6,184)
(6,277)
Proceeds from (Payments for) Other Financing Activities
281 
0 
Excess tax benefits from share-based compensation plans
3,790 
6,657 
Net cash used for financing activities
(90,005)
(47,695)
Effect of exchange-rate changes on cash
1,925 
286 
Net increase (decrease) in cash and cash equivalents
(205,136)
18,846 
Cash and cash equivalents at beginning of period
450,116 
175,294 
Cash and cash equivalents at end of period
244,980 
194,140 
Supplemental disclosure of non-cash activities:
 
 
Capital expenditures incurred but not yet paid
347 
1,371 
Property and equipment acquired under build to suit transaction
$ 0 
$ 12,376 
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) (USD $)
In Thousands, unless otherwise specified
Total
Common Stock Member
Additional Paid In Capital Member
Retained Earnings Member
Accumulated Other Comprehensive Loss Member
Treasury Stock Member
Beginning Balance at Dec. 31, 2013
 
$ 49,190 
$ 150,618 
$ 1,380,981 
$ 25,259 
$ (53,343)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
Net earnings
 
 
 
113,338 
 
 
Other comprehensive loss, net of tax
(153,670)
 
 
 
(153,670)
 
Dividends paid/declared
 
 
 
(25,013)
 
 
Restricted stock
 
 
(722)
 
 
3,155 
Stock options exercised, net of tax
 
0 
311 
 
 
45,049 
Other
 
 
(430)
 
 
430 
Share-based compensation
 
 
8,266 
 
 
234 
Repurchases of common stock
 
 
 
 
 
(65,220)
Ending Balance at Dec. 31, 2014
1,478,433 
49,190 
158,043 
1,469,306 
(128,411)
(69,695)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
Net earnings
41,728 
 
 
41,728 
 
 
Other comprehensive loss, net of tax
(19,823)
 
 
 
(19,823)
 
Dividends paid/declared
 
 
 
(12,292)
 
 
Restricted stock
 
 
(5,793)
 
 
8,206 
Stock options exercised, net of tax
 
0 
(1,467)
 
 
12,097 
Other
 
 
(573)
 
 
573 
Share-based compensation
 
 
4,331 
 
 
294 
Repurchases of common stock
 
 
 
 
 
(97,114)
Ending Balance at Jun. 30, 2015
$ 1,408,600 
$ 49,190 
$ 154,541 
$ 1,498,742 
$ (148,234)
$ (145,639)
BASIS OF PRESENTATION
BASIS OF PRESENTATION
BASIS OF PRESENTATION

Curtiss-Wright Corporation and its subsidiaries (the “Corporation” or the “Company”) is a diversified multinational manufacturing and service company that designs, manufactures, and overhauls precision components and provides highly engineered products and services to the aerospace, defense, automotive, shipbuilding, processing, oil, petrochemical, agricultural equipment, railroad, power generation, security, and metalworking industries.

The unaudited condensed consolidated financial statements include the accounts of Curtiss-Wright and its majority-owned subsidiaries. All intercompany transactions and accounts have been eliminated.

The unaudited condensed consolidated financial statements of the Corporation have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in annual financial statements have been condensed or omitted as permitted by such rules and regulations. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments necessary for a fair presentation of these financial statements.

Management is required to make estimates and judgments that affect the reported amount of assets, liabilities, revenue, and expenses and disclosure of contingent assets and liabilities in the accompanying financial statements. Actual results may differ from these estimates. The most significant of these estimates includes the estimate of costs to complete long-term contracts under the percentage-of-completion accounting methods, the estimate of useful lives for property, plant, and equipment, cash flow estimates used for testing the recoverability of assets, pension plan and postretirement obligation assumptions, estimates for inventory obsolescence, estimates for the valuation and useful lives of intangible assets, legal reserves, and the estimate of future environmental costs. Changes in estimates of contract sales, costs, and profits are recognized using the cumulative catch-up method of accounting. This method recognizes in the current period the cumulative effect of the changes on current and prior periods. Accordingly, the effect of the changes on future periods of contract performance is recognized as if the revised estimate had been the original estimate.

During the second quarter of 2015, the Corporation recorded additional costs of $11.5 million related to its long-term contract with Westinghouse to deliver reactor coolant pumps (RCPs) for the AP1000 nuclear power plants in China.  The increase in costs is due to a change in estimate related to production modifications that are the result of engineering and endurance testing. During the three and six month periods ended June 30, 2015 and 2014, there were no other individual significant changes in estimated contract costs.

In the opinion of management, all adjustments considered necessary for a fair presentation have been reflected in these financial statements.

The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Corporation’s 2014 Annual Report on Form 10-K. The results of operations for interim periods are not necessarily indicative of trends or of the operating results for a full year.

Changes in Segment Presentation

In 2015, the Corporation revised its reportable segments as a result of previously announced discontinued operations to: Commercial/Industrial, Defense, and Power. Prior period financial information has been reclassified to conform to the current period presentation. See Note 11 for more information on the Corporation’s reportable segments.

Recent accounting pronouncements
Standard
Description
Effect on the financial statements
ASU 2014-09 Revenue from contracts with customers

In May 2014, the FASB issued a comprehensive new revenue recognition standard which will supersede previous existing revenue recognition guidance. The standard creates a five-step model for revenue recognition that requires companies to exercise judgment when considering contract terms and relevant facts and circumstances. The five-step model includes (1) identifying the contract, (2) identifying the separate performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations and (5) recognizing revenue when each performance obligation has been satisfied. The standard also requires expanded disclosures surrounding revenue recognition. The standard is effective for fiscal periods beginning after December 15, 2017 and allows for either full retrospective or modified retrospective adoption, with early adoption permitted as of January 1, 2017.

The Corporation is currently evaluating the impact of the adoption of this standard on its Consolidated Financial Statements.
Date of adoption: January 1, 2018
ASU 2015-03 Simplifying the Presentation of Debt Issuance Costs
In April 2015, the FASB issued guidance which changes the presentation of debt issuance costs in financial statements. An entity presents such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense.
The Corporation does not expect the standard to have a significant impact on its Consolidated Financial Statements.
Date of adoption: January 1, 2016
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE

As part of a strategic portfolio review conducted in 2014, the Corporation identified certain businesses it considered non-core. The Corporation considers businesses non-core when the business’ products or services do not complement its existing businesses and where the long-term growth and profitability prospects are below the Corporation’s expectations. As part of this initiative, the Corporation divested one business in the first quarter of 2015 and one business in the second quarter of 2015 that were previously classified as held for sale. The results of operations of these businesses are reported as discontinued operations within our Condensed Consolidated Statements of Earnings and prior year amounts have been restated to conform to the current year presentation.

Discontinued Operations

The aggregate financial results of all discontinued operations and assets classified as held for sale for the three and six months ended June 30, were as follows:

 
 
Three Months Ended
 
Six Months Ended
(In thousands)
 
June 30,
 
June 30,
 
 
2015
 
2014
 
2015
 
2014
Net sales
 
$
23,025

 
$
100,363

 
$
57,284

 
$
198,816

Earnings / (loss) from discontinued operations before income taxes (1)
 
153

 
(2,961
)
 
(39,959
)
 
(4,941
)
Income tax benefit / (expense)
 
(3,759
)
 
767

 
8,956

 
1,481

Gain / (loss) on sale of businesses (2)
 
(10,778
)
 
(4,424
)
 
(10,613
)
 
(4,424
)
Earnings / (loss) from discontinued operations
 
$
(14,384
)
 
$
(6,618
)
 
$
(41,616
)
 
$
(7,884
)


(1) Loss from discontinued operations before income taxes includes approximately $41 million of Held for sale impairment expense in the six months ended June 30, 2015.

(2) Net of tax benefit for the three and six months ended June 30, 2015 of $3.1 million, respectively.


Assets held for sale

During the third quarter of 2014, the Corporation committed to a plan to sell two surface technology treatment facilities and its Engineered Packaging business. In July 2015, the Corporation sold the assets and liabilities of its Engineered Packaging business for approximately $13 million. As of June 30, 2015, these businesses continue to be classified as held for sale and their results of operations are presented as discontinued operations in the Condensed Consolidated Statement of Earnings.

The following table outlines the net sales and earnings/(loss) before income taxes attributable to the assets held for sale for the three and six months ended June 30.

 
 
Three Months Ended
 
Six Months Ended
 
 
June 30,
 
June 30,
(In thousands)
 
2015
 
2014
 
2015
 
2014
Net Sales
 
 
 
 
 
 
 
 
Surface Technologies - Domestic
 
$
926

 
$
1,157

 
$
2,036

 
$
2,485

Engineered Packaging
 
3,952

 
4,299

 
8,329

 
10,447

Total included in discontinued operations
 
$
4,878

 
$
5,456

 
$
10,365

 
$
12,932

 
 
 
 
 
 
 
 
 
Earnings / (loss) before income taxes
 
 
 
 
 
 
 
 
Surface Technologies - Domestic
 
$
(434
)
 
$
(144
)
 
$
(396
)
 
$
21

Engineered Packaging
 
178

 
173

 
283

 
1,220

Total included in discontinued operations
 
$
(256
)
 
$
29

 
$
(113
)
 
$
1,241



Divestitures and facility closures

During the second quarter of 2015, the Corporation completed the divestiture of its Downstream oil and gas business for $19 million, net of transaction costs. The business had previously been classified within assets held for sale and had recorded impairment charges of $40 million during the first quarter. In connection with the second quarter sale, the Corporation realized an additional pre-tax loss on divestiture of $14 million.

On January 9, 2015, the Corporation sold the assets of its Aviation Ground support business for £3 million ($4 million).

During the year ended December 31, 2014, the Corporation disposed of four businesses aggregating to cash proceeds of $153 million. The divestitures resulted in aggregate pre-tax losses in excess of $29 million, and tax benefits of approximately $7 million. During 2014, the Corporation also closed three international manufacturing facilities in its Surface Technologies business.

Net sales and earnings/(loss) before income taxes attributable to divestitures and facility closures for the three and six months ended June 30 were as follows:

 
 
Three Months Ended
 
Six Months Ended
 
 
June 30,
 
June 30,
(In thousands)
 
2015
 
2014
 
2015
 
2014
Net Sales
 
$
18,147

 
$
94,907

 
$
46,919

 
$
185,884

Earnings / (loss) before income taxes
 
409

 
(2,990
)
 
(39,846
)
 
(6,182
)
ACQUISITION
ACQUISITION
ACQUISITIONS

2015 Acquisitions

Bolt’s Metallizing, Inc.

On March 16, 2015, the Corporation acquired certain assets and assumed certain liabilities of Bolt’s Metallizing, Inc. for $13.2 million in cash. The Asset Purchase Agreement contains a purchase price adjustment mechanism and representations and warranties customary for a transaction of this type, including a portion of the purchase price held back as security for potential indemnification claims against the seller. Bolt’s Metallizing is a provider of thermal spray coatings for critical aerospace applications, including high velocity oxygen fuel (HVOF) and plasma spray coating capabilities.  The acquired business will operate within Curtiss-Wright’s Commercial/Industrial segment.

There have been no significant purchase price adjustments to our 2014 acquisitions since December 31, 2014.
RECEIVABLES
RECEIVABLES
RECEIVABLES

Receivables primarily include amounts billed to customers, unbilled charges on long-term contracts consisting of amounts recognized as sales but not billed, and other receivables.  Substantially all amounts of unbilled receivables are expected to be billed and collected within one year. An immaterial amount of unbilled receivables are subject to retainage provisions. The amount of claims and unapproved change orders within our receivables balances are immaterial.

The composition of receivables is as follows:
(In thousands)
June 30, 2015
 
December 31, 2014
Billed receivables:
 
 
 
Trade and other receivables
$
384,528

 
$
363,241

Less: Allowance for doubtful accounts
(6,646
)
 
(5,619
)
Net billed receivables
377,882

 
357,622

Unbilled receivables:
 
 
 
Recoverable costs and estimated earnings not billed
155,674

 
150,526

Less: Progress payments applied
(10,344
)
 
(12,668
)
Net unbilled receivables
145,330

 
137,858

Receivables, net
$
523,212

 
$
495,480

INVENTORIES
INVENTORIES
    INVENTORIES

Inventoried costs contain amounts relating to long-term contracts and programs with long production cycles, a portion of which will not be realized within one year. Long-term contract inventory includes an immaterial amount of claims or other similar items subject to uncertainty concerning their determination or realization. Inventories are valued at the lower of cost or market. The composition of inventories is as follows:

(In thousands)
June 30, 2015
 
December 31, 2014
Raw materials
$
218,262

 
$
201,998

Work-in-process
85,366

 
89,423

Finished goods and component parts
113,081

 
103,831

Inventoried costs related to long-term contracts
50,134

 
59,070

Gross inventories
466,843

 
454,322

Less:  Inventory reserves
(51,889
)
 
(51,435
)
Progress payments applied
(14,284
)
 
(14,217
)
Inventories, net
$
400,670

 
$
388,670



Inventoried costs related to long-term contracts include capitalized contract development costs related to certain aerospace and defense programs of $30.4 million and $33.9 million, as of June 30, 2015 and December 31, 2014, respectively. These capitalized costs will be liquidated as production units are delivered to the customers.  As of June 30, 2015 and December 31, 2014, $3.0 million and $7.2 million, respectively, are scheduled to be liquidated under existing firm orders.
GOODWILL
GOODWILL
GOODWILL

The changes in the carrying amount of goodwill, revised to reflect the Corporation’s new segment structure, for the six months ended June 30, 2015 are as follows:
(In thousands)
Commercial/Industrial
 
Defense
 
Power
 
Consolidated
December 31, 2014
$
454,092

 
$
356,689

 
$
187,725

 
$
998,506

Acquisitions
4,238

 
—

 
—

 
4,238

Goodwill adjustments
—

 
1,131

 
—

 
1,131

Foreign currency translation adjustment
(3,571
)
 
(8,781
)
 
(240
)
 
(12,592
)
June 30, 2015
$
454,759

 
$
349,039

 
$
187,485

 
$
991,283

OTHER INTANGIBLE ASSETS, NET
OTHER INTANGIBLE ASSETS, NET
OTHER INTANGIBLE ASSETS, NET
 
The following tables present the cumulative composition of the Corporation’s intangible assets:
 
 
June 30, 2015
 
December 31, 2014
(In thousands)
 
Gross
 
Accumulated Amortization
 
Net
 
Gross
 
Accumulated Amortization
 
Net
Technology
 
$
174,422

 
$
(88,444
)
 
$
85,978

 
$
178,369

 
$
(84,584
)
 
$
93,785

Customer related intangibles
 
359,682

 
(132,005
)
 
227,677

 
356,844

 
(122,920
)
 
233,924

Other intangible assets
 
37,942

 
(17,605
)
 
20,337

 
38,460

 
(16,942
)
 
21,518

Total
 
$
572,046

 
$
(238,054
)
 
$
333,992

 
$
573,673

 
$
(224,446
)
 
$
349,227

 
 
 
 
 
 
 
 
 
 
 
 
 


During the first six months of 2015, the Corporation acquired Customer related intangibles of $7.7 million.
Total intangible amortization expense for the six months ended June 30, 2015 was $17.2 million as compared to $19.8 million in the prior year period.  The estimated amortization expense for the five years ending December 31, 2015 through 2019 is $34.7 million, $34.3 million, $33.8 million, $32.7 million, and $30.9 million, respectively.
FAIR VALUE OF FINANCIAL INSTRUMENTS
FAIR VALUE OF FINANCIAL INSTRUMENTS
FAIR VALUE OF FINANCIAL INSTRUMENTS
 
Forward Foreign Exchange and Currency Option Contracts
 
The Corporation has foreign currency exposure primarily in the United Kingdom, Europe, and Canada.  The Corporation uses financial instruments, such as forward and option contracts, to hedge a portion of existing and anticipated foreign currency denominated transactions.  The purpose of the Corporation’s foreign currency risk management program is to reduce volatility in earnings caused by exchange rate fluctuations.  Guidance on accounting for derivative instruments and hedging activities requires companies to recognize all of the derivative financial instruments as either assets or liabilities at fair value in the Condensed Consolidated Balance Sheets based upon quoted market prices for comparable instruments.
 
Interest Rate Risks and Related Strategies
 
The Corporation’s primary interest rate exposure results from changes in U.S. dollar interest rates. The Corporation’s policy is to manage interest cost using a mix of fixed and variable rate debt. The Corporation periodically uses interest rate swaps to manage such exposures. Under these interest rate swaps, the Corporation exchanges, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to an agreed-upon notional principal amount.

For interest rate swaps designated as fair value hedges (i.e., hedges against the exposure to changes in the fair value of an asset or a liability or an identified portion thereof that is attributable to a particular risk), changes in the fair value of the interest rate swaps offset changes in the fair value of the fixed rate debt due to changes in market interest rates.

The notional amounts of the Corporation’s outstanding interest rate swaps designated as fair value hedges were $400 million at June 30, 2015.

The fair value accounting guidance requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories:

Level 1: Quoted market prices in active markets for identical assets or liabilities that the company has the ability to access.

Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data such as quoted prices, interest rates and yield curves.

Level 3: Inputs are unobservable data points that are not corroborated by market data.

Based upon the fair value hierarchy, all of the forward foreign exchange contracts and interest rate swaps are valued at a Level 2.

Effects on Consolidated Balance Sheets

The location and amounts of derivative instrument fair values in the condensed consolidated balance sheet are below.
(In thousands)
June 30, 2015
 
December 31, 2014
Assets
 
 
 
Undesignated for hedge accounting
 
 
 
Forward exchange contracts
$
56

 
$
605

Total asset derivatives (A)
$
56

 
$
605

Liabilities
 
 
 
Designated for hedge accounting
 
 
 
Interest rate swaps
$
9,443

 
$
5,121

Undesignated for hedge accounting
 
 
 
Forward exchange contracts
364

 
676

Total liability derivatives (B)
$
9,807

 
$
5,797



(A)Forward exchange derivatives are included in Other current assets.
(B)Forward exchange derivatives are included in Other current liabilities and interest rate swap liabilities are included in Other liabilities.

Effects on Condensed Consolidated Statements of Earnings
 
Fair value hedge
 
The location and amount of gains or losses on the hedged fixed rate debt attributable to changes in the market interest rates and the offsetting gain (loss) on the related interest rate swaps for the three and six months ended June 30, were as follows:
 
 
Three Months Ended
 
Six Months Ended
 
(In thousands)
 
June 30,
 
June 30,
 
 
 
2015
 
2014
 
2015
 
2014
 
Other Income, net
 
 
 
 
 
 
 
 
 
Gain / (loss) on interest rate swaps
 
$
(16,232
)
 
$
12,159

 
$
(4,322
)
 
$
24,934

 
Gain / (loss) on hedged fixed rate debt
 
16,232

 
(12,159
)
 
4,322

 
(24,934
)
 
Total
 
$
—

 
$
—

 
$
—

 
$
—

 




Undesignated hedges

The location and amount of gains and losses recognized in income on forward exchange derivative contracts not designated for hedge accounting for the three and six months ended June 30, were as follows:
 
 
Three Months Ended
 
Six Months Ended
(In thousands)
 
June 30,
 
June 30,
Derivatives not designated as hedging instrument
 
2015
 
2014
 
2015
 
2014
Forward exchange contracts:
 
 
 
 
 
 
 
 
General and administrative expenses
 
$
2,528

 
$
2,020

 
$
1,556

 
$
(930
)


Debt

The estimated fair value amounts were determined by the Corporation using available market information that is primarily based on quoted market prices for the same or similar issues as of June 30, 2015.  Accordingly, all of the Corporation’s debt is valued at a Level 2.  The fair values described below may not be indicative of net realizable value or reflective of future fair values.  Furthermore, the use of different methodologies to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.

 
June 30, 2015
 
December 31, 2014
(In thousands)
Carrying Value
 
Estimated Fair Value
 
Carrying Value
 
Estimated Fair Value
Industrial revenue bond, due 2023
$
8,400

 
$
8,400

 
$
8,400

 
$
8,400

Revolving credit agreement, due 2019
—

 
—

 
—

 
—

5.51% Senior notes due 2017
150,000

 
161,000

 
150,000

 
162,617

3.84% Senior notes due 2021
99,988

 
99,988

 
99,934

 
99,934

3.70% Senior notes due 2023
225,000

 
224,473

 
225,000

 
225,748

3.85% Senior notes due 2025
97,721

 
97,721

 
98,360

 
98,360

4.24% Senior notes due 2026
194,733

 
194,733

 
197,237

 
197,237

4.05% Senior notes due 2028
73,116

 
73,116

 
74,348

 
74,348

4.11% Senior notes due 2028
100,000

 
99,259

 
100,000

 
100,801

Other debt
1,038

 
1,038

 
1,069

 
1,069

Total debt
$
949,996

 
$
959,728

 
$
954,348

 
$
968,514



Nonrecurring measurements
As discussed in Note 2. Discontinued Operations and Assets Held For Sale, the Corporation classified certain businesses as held for sale during 2014. In accordance with the provisions of the Impairment or Disposal of Long-Lived Assets guidance of FASB Codification Subtopic 360–10, the carrying amount of the disposal groups were written down to their estimated fair value, less costs to sell, resulting in an impairment charge of $40.8 million, which was included in the loss from discontinued operations before income taxes for the six months ended June 30, 2015. The fair value of the disposal groups were determined primarily by using non-binding quotes. In accordance with the fair value hierarchy, the impairment charge is classified as a Level 3 measurement as it is based on significant other unobservable inputs.
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS

The following tables are consolidated disclosures of all domestic and foreign defined pension plans as described in the Corporation’s 2014 Annual Report on Form 10-K.  

Pension Plans

The components of net periodic pension cost for the three and six months ended June 30, 2015 and 2014 are as follows:

 
Three Months Ended
 
Six Months Ended
(In thousands)
June 30,
 
June 30,
 
2015
 
2014
 
2015
 
2014
Service cost
$
7,137

 
$
6,372

 
$
14,273

 
$
12,742

Interest cost
7,497

 
7,552

 
14,988

 
15,096

Expected return on plan assets
(13,688
)
 
(10,425
)
 
(27,367
)
 
(20,838
)
Amortization of prior service cost
156

 
157

 
311

 
315

Amortization of unrecognized actuarial loss
3,866

 
1,483

 
7,731

 
2,966

Net periodic benefit cost
$
4,968

 
$
5,139

 
$
9,936

 
$
10,281



During the six months ended June 30, 2015, the Corporation made $145.0 million in contributions to the Curtiss-Wright Pension Plan.  In addition, contributions of $1.8 million were made to the Corporation’s foreign benefit plans during the six months ended June 30, 2015.  Contributions to the foreign benefit plans are expected to be $3.0 million in 2015.



Defined Contribution Retirement Plan

Effective January 1, 2014, all non-union employees who are not currently receiving final or career average pay benefits became eligible to receive employer contributions in the Corporation’s sponsored 401(k) plan. The employer contributions include both employer match and non-elective contribution components, up to a maximum employer contribution of 6% of eligible compensation.  During the six months ended June 30, 2015 and 2014, the expense relating to the plan was $7.5 million and $7.7 million, respectively.
EARNINGS PER SHARE
EARNINGS PER SHARE
EARNINGS PER SHARE
 
Diluted earnings per share were computed based on the weighted-average number of shares outstanding plus all potentially dilutive common shares.  A reconciliation of basic to diluted shares used in the earnings per share calculation is as follows:
 
 
Three Months Ended
 
Six Months Ended
(In thousands)
June 30,
 
June 30,
 
2015
 
2014
 
2015
 
2014
Basic weighted-average shares outstanding
47,224

 
48,175

 
47,466

 
48,055

Dilutive effect of stock options and deferred stock compensation
1,034

 
1,064

 
1,021

 
1,105

Diluted weighted-average shares outstanding
48,258

 
49,239

 
48,487

 
49,160



As of June 30, 2015 and June 30, 2014, respectively, there were no options outstanding that were considered anti-dilutive.
SEGMENT INFORMATION
SEGMENT INFORMATION
SEGMENT INFORMATION
 
Prior to the first quarter of 2015, the Corporation reported its results of operations through three segments: Commercial/Industrial, Defense, and Energy. Beginning in the first quarter of 2015, the Corporation realigned its reportable segments as a result of its previously announced discontinued operations. The Energy segment was renamed Power. The new Power segment includes businesses serving the nuclear naval defense and new build (AP1000) power generation markets, which had previously operated within the Defense segment. The remaining oil and gas businesses that had operated within the Energy segment have joined the Commercial/Industrial segment. As result of this realignment, the Corporation’s new reportable segments are: Commercial/Industrial, Defense, and Power.

The Commercial/Industrial reportable segment is comprised of businesses that provide a diversified offering of highly engineered products and services supporting critical applications across the aerospace, automotive and general industrial markets. The products offered include electronic throttle control devices and transmission shifters, electro-mechanical actuation control components, and pressure relief management systems.

The Defense reportable segment provides embedded computing board level modules, integrated subsystems, turret aiming and stabilization products, and weapons handling systems to defense markets.

The Power segment is comprised of businesses that manufacture and service main coolant pumps, power-dense compact motors, generators, and secondary propulsion systems. We also leveraged proven defense technology and engineering expertise to provide Reactor Coolant Pump (RCP) technology, pump seals, and control rod drive mechanisms for commercial nuclear power plants. Additional products include a wide range of hardware, pumps, pressure vessels, fastening systems, specialized containment doors, airlock hatches, spent fuel management products, and fluid sealing technologies for nuclear power plants and nuclear equipment manufacturers.
The Corporation’s measure of segment profit or loss is operating income. Interest expense and income taxes are not reported on an operating segment basis because they are not considered in the segments’ performance evaluation by the Corporation’s chief operating decision-maker, its Chief Executive Officer.
Net sales and operating income by reportable segment were as follows:
 
Three Months Ended
 
Six Months Ended
(In thousands)
June 30,
 
June 30,
 
2015
 
2014
 
2015
 
2014
Net sales
 
 
 
 
 
 
 
Commercial/Industrial
$
305,074

 
$
315,114

 
$
604,972

 
$
617,131

Defense
120,149

 
118,889

 
234,501

 
232,042

Power
121,661

 
137,320

 
256,796

 
267,595

Less: Intersegment revenues
(1,690
)
 
(2,125
)
 
(4,876
)
 
(4,611
)
Total consolidated
$
545,194

 
$
569,198

 
$
1,091,393

 
$
1,112,157

 
 
 
 
 
 
 
 
Operating income (expense)
 
 
 
 
 
 
 
Commercial/Industrial
$
45,253

 
$
45,750

 
$
88,542

 
$
84,246

Defense
24,391

 
18,002

 
42,418

 
33,786

Power
1,454

 
14,865

 
20,966

 
29,140

Corporate and eliminations (1)
(5,656
)
 
(6,458
)
 
(13,649
)
 
(13,979
)
Total consolidated
$
65,442

 
$
72,159

 
$
138,277

 
$
133,193


(1) Corporate and eliminations includes pension expense, environmental remediation and administrative expenses, legal, foreign currency transactional gains and losses, and other expenses.

Operating income by reportable segment and the reconciliation to income from continuing operations before income taxes are as follows:

 
Three Months Ended
 
Six Months Ended
(In thousands)
June 30,
 
June 30,
 
2015
 
2014
 
2015
 
2014
Total operating income
$
65,442

 
$
72,159

 
$
138,277

 
$
133,193

Interest expense
(8,985
)
 
(8,986
)
 
(17,981
)
 
(18,041
)
Other income, net
(37
)
 
(23
)
 
444

 
89

Earnings from continuing operations before income taxes
$
56,420

 
$
63,150

 
$
120,740

 
$
115,241



(In thousands)
June 30, 2015
 
December 31, 2014
Identifiable assets
 
 
 
Commercial/Industrial
$
1,561,489

 
$
1,534,882

Defense
806,804

 
837,891

Power
581,061

 
588,366

Corporate and Other
148,496

 
291,025

Assets held for sale
14,761

 
147,347

Total consolidated
$
3,112,611

 
$
3,399,511

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
 
The cumulative balance of each component of accumulated other comprehensive income (AOCI), net of tax, is as follows:
 
(In thousands)
Foreign currency translation adjustments, net
 
Total pension and postretirement adjustments, net
 
Accumulated other comprehensive income (loss)
December 31, 2013
$
59,103

 
$
(33,844
)
 
$
25,259

Other comprehensive loss (OCI)
(79,386
)
 
(74,284
)
 
(153,670
)
December 31, 2014
$
(20,283
)
 
$
(108,128
)
 
$
(128,411
)
OCI before reclassifications (1)
(24,592
)
 
41

 
(24,551
)
Amounts reclassified from AOCI (1)
—

 
4,728

 
4,728

Net current period OCI
(24,592
)
 
4,769

 
(19,823
)
June 30, 2015
$
(44,875
)
 
$
(103,359
)
 
$
(148,234
)


(1)
All amounts are after tax.

Details of amounts reclassified from accumulated other comprehensive income (loss) are below:
 
(In thousands)
Amount reclassified from AOCI
 
Affected line item in the statement where net earnings is presented
Defined benefit pension and other postretirement benefit plans
 
 
 
Amortization of prior service costs
17

 
(1)
Amortization of actuarial losses
(7,456
)
 
(1)
 
(7,439
)
 
Total before tax
 
2,711

 
Income tax
Total reclassifications
$
(4,728
)
 
Net of tax


(1)
These items are included in the computation of net periodic pension cost.  See Note 9, Pension and Other Postretirement Benefit Plans.
CONTINGENCIES AND COMMITMENTS
CONTINGENCIES AND COMMITMENTS
CONTINGENCIES AND COMMITMENTS

Legal Proceedings

The Corporation has been named in a number of lawsuits that allege injury from exposure to asbestos.  To date, the Corporation has not been found liable for or paid any material sum of money in settlement in any case.  The Corporation believes its minimal use of asbestos in its past and current operations and the relatively non-friable condition of asbestos in its products makes it unlikely that it will face material liability in any asbestos litigation, whether individually or in the aggregate.  The Corporation maintains insurance coverage for these potential liabilities and believes adequate coverage exists to cover any unanticipated asbestos liability.

In December 2013, the Corporation, along with other unaffiliated parties, received a claim from Canadian Natural Resources Limited (CNRL) filed in the Court of Queen’s Bench of Alberta, Judicial District of Calgary. The claim pertains to a January 2011 fire and explosion at a delayed coker unit at its Fort McMurray refinery that resulted in the injury of five CNRL employees, damage to property and equipment, and various forms of consequential loss, such as loss of profit, lost opportunities, and business interruption. The fire and explosion occurred when a CNRL employee bypassed certain safety controls and opened an operating coker unit. The total quantum of alleged damages arising from the incident has not been finalized, but is estimated to meet or exceed $1 billion.  The Corporation maintains various forms of commercial, property and casualty, product liability, and other forms of insurance; however, such insurance may not be adequate to cover the costs associated with a judgment against us. The Corporation is currently unable to estimate an amount, or range of potential losses, if any, from this matter. The Corporation believes it has adequate legal defenses and intends to defend this matter vigorously. The Corporation’s financial condition, results of operations, and cash flows, could be materially affected during a future fiscal quarter or fiscal year by unfavorable developments or outcome regarding this claim.

In addition to the CNRL litigation, the Corporation is party to a number of other legal actions and claims, none of which individually or in the aggregate, in the opinion of management, are expected to have a material effect on the Corporation’s results of operations or financial position.

Letters of Credit and Other Financial Arrangements

The Corporation enters into standby letters of credit agreements and guarantees with financial institutions and customers primarily relating to guarantees of repayment, future performance on certain contracts to provide products and services, and to secure advance payments from certain international customers. At June 30, 2015 and December 31, 2014, there were $51.7 million and $54.3 million of stand-by letters of credit outstanding, respectively, and $15.6 million and $20.7 million of bank guarantees outstanding, respectively. As of June 30, 2015, letters of credit outstanding related to discontinuing operations were $7.1 million.  In addition, the Corporation is required to provide the Nuclear Regulatory Commission financial assurance demonstrating its ability to cover the cost of decommissioning its Cheswick, Pennsylvania facility upon closure, though the Corporation does not intend to close this facility.  The Corporation has provided this financial assurance in the form of a $52.9 million surety bond.

AP1000 Program

Within the Corporation’s Power segment, our Electro-Mechanical Division is the reactor coolant pump (RCP) supplier for the Westinghouse AP1000 nuclear power plants under construction in China and the United States.  The terms of the AP1000 China and United States contracts include liquidated damage penalty provisions for failure to meet contractual delivery dates if the Corporation caused the delay and the delay was not excusable. On October 10, 2013, the Corporation received a letter from Westinghouse stating entitlements to the maximum amount of liquidated damages allowable under the AP1000 China contract from Westinghouse of approximately $25 million. As of June 30, 2015, the Corporation has not met certain contractual delivery dates under its AP 1000 China and US contracts; however there are significant uncertainties as to which parties are responsible for the delays. The Corporation believes it has adequate legal defenses and intends to vigorously defend this matter. Given the uncertainties surrounding the responsibility for the delays no accrual has been made for this matter as of June 30, 2015.  As of June 30, 2015, the range of possible loss is $0 to $48 million.
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS

On July 1, 2015, the Corporation made a voluntary prepayment on its Industrial Revenue Bond in the amount of $8.4 million.

In July 2015, the Corporation sold the assets and liabilities of its Engineered Packaging business for approximately $13 million. The assets and liabilities of this business were reported as held for sale as of June 30, 2015 and its results of operations have been reflected as discontinued operations.
BASIS OF PRESENTATION (Policies)
Basis Of Accounting

Curtiss-Wright Corporation and its subsidiaries (the “Corporation” or the “Company”) is a diversified multinational manufacturing and service company that designs, manufactures, and overhauls precision components and provides highly engineered products and services to the aerospace, defense, automotive, shipbuilding, processing, oil, petrochemical, agricultural equipment, railroad, power generation, security, and metalworking industries.

The unaudited condensed consolidated financial statements include the accounts of Curtiss-Wright and its majority-owned subsidiaries. All intercompany transactions and accounts have been eliminated.

The unaudited condensed consolidated financial statements of the Corporation have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in annual financial statements have been condensed or omitted as permitted by such rules and regulations. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments necessary for a fair presentation of these financial statements.

Management is required to make estimates and judgments that affect the reported amount of assets, liabilities, revenue, and expenses and disclosure of contingent assets and liabilities in the accompanying financial statements. Actual results may differ from these estimates. The most significant of these estimates includes the estimate of costs to complete long-term contracts under the percentage-of-completion accounting methods, the estimate of useful lives for property, plant, and equipment, cash flow estimates used for testing the recoverability of assets, pension plan and postretirement obligation assumptions, estimates for inventory obsolescence, estimates for the valuation and useful lives of intangible assets, legal reserves, and the estimate of future environmental costs. Changes in estimates of contract sales, costs, and profits are recognized using the cumulative catch-up method of accounting. This method recognizes in the current period the cumulative effect of the changes on current and prior periods. Accordingly, the effect of the changes on future periods of contract performance is recognized as if the revised estimate had been the original estimate.

During the second quarter of 2015, the Corporation recorded additional costs of $11.5 million related to its long-term contract with Westinghouse to deliver reactor coolant pumps (RCPs) for the AP1000 nuclear power plants in China.  The increase in costs is due to a change in estimate related to production modifications that are the result of engineering and endurance testing. During the three and six month periods ended June 30, 2015 and 2014, there were no other individual significant changes in estimated contract costs.

In the opinion of management, all adjustments considered necessary for a fair presentation have been reflected in these financial statements.

The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Corporation’s 2014 Annual Report on Form 10-K. The results of operations for interim periods are not necessarily indicative of trends or of the operating results for a full year.

Changes in Segment Presentation

In 2015, the Corporation revised its reportable segments as a result of previously announced discontinued operations to: Commercial/Industrial, Defense, and Power. Prior period financial information has been reclassified to conform to the current period presentation. See Note 11 for more information on the Corporation’s reportable segments.

Recent accounting pronouncements
Standard
Description
Effect on the financial statements
ASU 2014-09 Revenue from contracts with customers

In May 2014, the FASB issued a comprehensive new revenue recognition standard which will supersede previous existing revenue recognition guidance. The standard creates a five-step model for revenue recognition that requires companies to exercise judgment when considering contract terms and relevant facts and circumstances. The five-step model includes (1) identifying the contract, (2) identifying the separate performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations and (5) recognizing revenue when each performance obligation has been satisfied. The standard also requires expanded disclosures surrounding revenue recognition. The standard is effective for fiscal periods beginning after December 15, 2017 and allows for either full retrospective or modified retrospective adoption, with early adoption permitted as of January 1, 2017.

The Corporation is currently evaluating the impact of the adoption of this standard on its Consolidated Financial Statements.
Date of adoption: January 1, 2018
ASU 2015-03 Simplifying the Presentation of Debt Issuance Costs
In April 2015, the FASB issued guidance which changes the presentation of debt issuance costs in financial statements. An entity presents such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense.
The Corporation does not expect the standard to have a significant impact on its Consolidated Financial Statements.
Date of adoption: January 1, 2016


DISCONTINUED OPERATIONS (Table)
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures
 
 
Three Months Ended
 
Six Months Ended
 
 
June 30,
 
June 30,
(In thousands)
 
2015
 
2014
 
2015
 
2014
Net Sales
 
 
 
 
 
 
 
 
Surface Technologies - Domestic
 
$
926

 
$
1,157

 
$
2,036

 
$
2,485

Engineered Packaging
 
3,952

 
4,299

 
8,329

 
10,447

Total included in discontinued operations
 
$
4,878

 
$
5,456

 
$
10,365

 
$
12,932

 
 
 
 
 
 
 
 
 
Earnings / (loss) before income taxes
 
 
 
 
 
 
 
 
Surface Technologies - Domestic
 
$
(434
)
 
$
(144
)
 
$
(396
)
 
$
21

Engineered Packaging
 
178

 
173

 
283

 
1,220

Total included in discontinued operations
 
$
(256
)
 
$
29

 
$
(113
)
 
$
1,241

 
 
Three Months Ended
 
Six Months Ended
 
 
June 30,
 
June 30,
(In thousands)
 
2015
 
2014
 
2015
 
2014
Net Sales
 
$
18,147

 
$
94,907

 
$
46,919

 
$
185,884

Earnings / (loss) before income taxes
 
409

 
(2,990
)
 
(39,846
)
 
(6,182
)

 
 
Three Months Ended
 
Six Months Ended
(In thousands)
 
June 30,
 
June 30,
 
 
2015
 
2014
 
2015
 
2014
Net sales
 
$
23,025

 
$
100,363

 
$
57,284

 
$
198,816

Earnings / (loss) from discontinued operations before income taxes (1)
 
153

 
(2,961
)
 
(39,959
)
 
(4,941
)
Income tax benefit / (expense)
 
(3,759
)
 
767

 
8,956

 
1,481

Gain / (loss) on sale of businesses (2)
 
(10,778
)
 
(4,424
)
 
(10,613
)
 
(4,424
)
Earnings / (loss) from discontinued operations
 
$
(14,384
)
 
$
(6,618
)
 
$
(41,616
)
 
$
(7,884
)
RECEIVABLES (Table)
Schedule Of Accounts Notes Loans And Financing Receivable
The composition of receivables is as follows:
(In thousands)
June 30, 2015
 
December 31, 2014
Billed receivables:
 
 
 
Trade and other receivables
$
384,528

 
$
363,241

Less: Allowance for doubtful accounts
(6,646
)
 
(5,619
)
Net billed receivables
377,882

 
357,622

Unbilled receivables:
 
 
 
Recoverable costs and estimated earnings not billed
155,674

 
150,526

Less: Progress payments applied
(10,344
)
 
(12,668
)
Net unbilled receivables
145,330

 
137,858

Receivables, net
$
523,212

 
$
495,480

INVENTORIES (Table)
Schedule Of Inventory

(In thousands)
June 30, 2015
 
December 31, 2014
Raw materials
$
218,262

 
$
201,998

Work-in-process
85,366

 
89,423

Finished goods and component parts
113,081

 
103,831

Inventoried costs related to long-term contracts
50,134

 
59,070

Gross inventories
466,843

 
454,322

Less:  Inventory reserves
(51,889
)
 
(51,435
)
Progress payments applied
(14,284
)
 
(14,217
)
Inventories, net
$
400,670

 
$
388,670

GOODWILL (Table)
Schedule Of Goodwill
The changes in the carrying amount of goodwill, revised to reflect the Corporation’s new segment structure, for the six months ended June 30, 2015 are as follows:
(In thousands)
Commercial/Industrial
 
Defense
 
Power
 
Consolidated
December 31, 2014
$
454,092

 
$
356,689

 
$
187,725

 
$
998,506

Acquisitions
4,238

 
—

 
—

 
4,238

Goodwill adjustments
—

 
1,131

 
—

 
1,131

Foreign currency translation adjustment
(3,571
)
 
(8,781
)
 
(240
)
 
(12,592
)
June 30, 2015
$
454,759

 
$
349,039

 
$
187,485

 
$
991,283

OTHER INTANGIBLE ASSETS, NET (Table)
Schedule Of Intangible Assets By Major Class
The following tables present the cumulative composition of the Corporation’s intangible assets:
 
 
June 30, 2015
 
December 31, 2014
(In thousands)
 
Gross
 
Accumulated Amortization
 
Net
 
Gross
 
Accumulated Amortization
 
Net
Technology
 
$
174,422

 
$
(88,444
)
 
$
85,978

 
$
178,369

 
$
(84,584
)
 
$
93,785

Customer related intangibles
 
359,682

 
(132,005
)
 
227,677

 
356,844

 
(122,920
)
 
233,924

Other intangible assets
 
37,942

 
(17,605
)
 
20,337

 
38,460

 
(16,942
)
 
21,518

Total
 
$
572,046

 
$
(238,054
)
 
$
333,992

 
$
573,673

 
$
(224,446
)
 
$
349,227

 
 
 
 
 
 
 
 
 
 
 
 
 
FAIR VALUE OF FINANCIAL INSTRUMENTS (Table)
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] 
The location and amounts of derivative instrument fair values in the condensed consolidated balance sheet are below.
(In thousands)
June 30, 2015
 
December 31, 2014
Assets
 
 
 
Undesignated for hedge accounting
 
 
 
Forward exchange contracts
$
56

 
$
605

Total asset derivatives (A)
$
56

 
$
605

Liabilities
 
 
 
Designated for hedge accounting
 
 
 
Interest rate swaps
$
9,443

 
$
5,121

Undesignated for hedge accounting
 
 
 
Forward exchange contracts
364

 
676

Total liability derivatives (B)
$
9,807

 
$
5,797



(A)Forward exchange derivatives are included in Other current assets.
(B)Forward exchange derivatives are included in Other current liabilities and interest rate swap liabilities are included in Other liabilities.
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] 
three and six months ended June 30, were as follows:
 
 
Three Months Ended
 
Six Months Ended
 
(In thousands)
 
June 30,
 
June 30,
 
 
 
2015
 
2014
 
2015
 
2014
 
Other Income, net
 
 
 
 
 
 
 
 
 
Gain / (loss) on interest rate swaps
 
$
(16,232
)
 
$
12,159

 
$
(4,322
)
 
$
24,934

 
Gain / (loss) on hedged fixed rate debt
 
16,232

 
(12,159
)
 
4,322

 
(24,934
)
 
Total
 
$
—

 
$
—

 
$
—

 
$
—

 




Undesignated hedges

The location and amount of gains and losses recognized in income on forward exchange derivative contracts not designated for hedge accounting for the three and six months ended June 30, were as follows:
 
 
Three Months Ended
 
Six Months Ended
(In thousands)
 
June 30,
 
June 30,
Derivatives not designated as hedging instrument
 
2015
 
2014
 
2015
 
2014
Forward exchange contracts:
 
 
 
 
 
 
 
 
General and administrative expenses
 
$
2,528

 
$
2,020

 
$
1,556

 
$
(930
)
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block] 
 
June 30, 2015
 
December 31, 2014
(In thousands)
Carrying Value
 
Estimated Fair Value
 
Carrying Value
 
Estimated Fair Value
Industrial revenue bond, due 2023
$
8,400

 
$
8,400

 
$
8,400

 
$
8,400

Revolving credit agreement, due 2019
—

 
—

 
—

 
—

5.51% Senior notes due 2017
150,000

 
161,000

 
150,000

 
162,617

3.84% Senior notes due 2021
99,988

 
99,988

 
99,934

 
99,934

3.70% Senior notes due 2023
225,000

 
224,473

 
225,000

 
225,748

3.85% Senior notes due 2025
97,721

 
97,721

 
98,360

 
98,360

4.24% Senior notes due 2026
194,733

 
194,733

 
197,237

 
197,237

4.05% Senior notes due 2028
73,116

 
73,116

 
74,348

 
74,348

4.11% Senior notes due 2028
100,000

 
99,259

 
100,000

 
100,801

Other debt
1,038

 
1,038

 
1,069

 
1,069

Total debt
$
949,996

 
$
959,728

 
$
954,348

 
$
968,514

PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Table) (Pension Plans Defined Benefit [Member])
Schedule Of Defined Benefit Plans Disclosures
The components of net periodic pension cost for the three and six months ended June 30, 2015 and 2014 are as follows:

 
Three Months Ended
 
Six Months Ended
(In thousands)
June 30,
 
June 30,
 
2015
 
2014
 
2015
 
2014
Service cost
$
7,137

 
$
6,372

 
$
14,273

 
$
12,742

Interest cost
7,497

 
7,552

 
14,988

 
15,096

Expected return on plan assets
(13,688
)
 
(10,425
)
 
(27,367
)
 
(20,838
)
Amortization of prior service cost
156

 
157

 
311

 
315

Amortization of unrecognized actuarial loss
3,866

 
1,483

 
7,731

 
2,966

Net periodic benefit cost
$
4,968

 
$
5,139

 
$
9,936

 
$
10,281

EARNINGS PER SHARE (Table)
Schedule of Earnings Per Share Reconciliation
A reconciliation of basic to diluted shares used in the earnings per share calculation is as follows:
 
 
Three Months Ended
 
Six Months Ended
(In thousands)
June 30,
 
June 30,
 
2015
 
2014
 
2015
 
2014
Basic weighted-average shares outstanding
47,224

 
48,175

 
47,466

 
48,055

Dilutive effect of stock options and deferred stock compensation
1,034

 
1,064

 
1,021

 
1,105

Diluted weighted-average shares outstanding
48,258

 
49,239

 
48,487

 
49,160

SEGMENT INFORMATION (Table)
Schedule Of Segment Reporting Information By Segment 
 
Three Months Ended
 
Six Months Ended
(In thousands)
June 30,
 
June 30,
 
2015
 
2014
 
2015
 
2014
Net sales
 
 
 
 
 
 
 
Commercial/Industrial
$
305,074

 
$
315,114

 
$
604,972

 
$
617,131

Defense
120,149

 
118,889

 
234,501

 
232,042

Power
121,661

 
137,320

 
256,796

 
267,595

Less: Intersegment revenues
(1,690
)
 
(2,125
)
 
(4,876
)
 
(4,611
)
Total consolidated
$
545,194

 
$
569,198

 
$
1,091,393

 
$
1,112,157

 
 
 
 
 
 
 
 
Operating income (expense)
 
 
 
 
 
 
 
Commercial/Industrial
$
45,253

 
$
45,750

 
$
88,542

 
$
84,246

Defense
24,391

 
18,002

 
42,418

 
33,786

Power
1,454

 
14,865

 
20,966

 
29,140

Corporate and eliminations (1)
(5,656
)
 
(6,458
)
 
(13,649
)
 
(13,979
)
Total consolidated
$
65,442

 
$
72,159

 
$
138,277

 
$
133,193


(1) Corporate and eliminations includes pension expense, environmental remediation and administrative expenses, legal, foreign currency transactional gains and losses, and other expenses.
Reconciliation of Operating Profit (Loss) from Segments to Consolidated 
Operating income by reportable segment and the reconciliation to income from continuing operations before income taxes are as follows:

 
Three Months Ended
 
Six Months Ended
(In thousands)
June 30,
 
June 30,
 
2015
 
2014
 
2015
 
2014
Total operating income
$
65,442

 
$
72,159

 
$
138,277

 
$
133,193

Interest expense
(8,985
)
 
(8,986
)
 
(17,981
)
 
(18,041
)
Other income, net
(37
)
 
(23
)
 
444

 
89

Earnings from continuing operations before income taxes
$
56,420

 
$
63,150

 
$
120,740

 
$
115,241

Reconciliation Of Assets From Segment To Consolidated 
(In thousands)
June 30, 2015
 
December 31, 2014
Identifiable assets
 
 
 
Commercial/Industrial
$
1,561,489

 
$
1,534,882

Defense
806,804

 
837,891

Power
581,061

 
588,366

Corporate and Other
148,496

 
291,025

Assets held for sale
14,761

 
147,347

Total consolidated
$
3,112,611

 
$
3,399,511

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Table)
Schedule of Comprehensive Income (Loss) 
The cumulative balance of each component of accumulated other comprehensive income (AOCI), net of tax, is as follows:
 
(In thousands)
Foreign currency translation adjustments, net
 
Total pension and postretirement adjustments, net
 
Accumulated other comprehensive income (loss)
December 31, 2013
$
59,103

 
$
(33,844
)
 
$
25,259

Other comprehensive loss (OCI)
(79,386
)
 
(74,284
)
 
(153,670
)
December 31, 2014
$
(20,283
)
 
$
(108,128
)
 
$
(128,411
)
OCI before reclassifications (1)
(24,592
)
 
41

 
(24,551
)
Amounts reclassified from AOCI (1)
—

 
4,728

 
4,728

Net current period OCI
(24,592
)
 
4,769

 
(19,823
)
June 30, 2015
$
(44,875
)
 
$
(103,359
)
 
$
(148,234
)


(1)
All amounts are after tax.
Reclassification out of Accumulated Other Comprehensive Income 
Details of amounts reclassified from accumulated other comprehensive income (loss) are below:
 
(In thousands)
Amount reclassified from AOCI
 
Affected line item in the statement where net earnings is presented
Defined benefit pension and other postretirement benefit plans
 
 
 
Amortization of prior service costs
17

 
(1)
Amortization of actuarial losses
(7,456
)
 
(1)
 
(7,439
)
 
Total before tax
 
2,711

 
Income tax
Total reclassifications
$
(4,728
)
 
Net of tax


(1)
These items are included in the computation of net periodic pension cost.  See Note 9, Pension and Other Postretirement Benefit Plans.
BASIS OF PRESENTATION (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
 
Additional costs
$ 11.5 
DISCONTINUED OPERATIONS (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Dec. 31, 2014
Discontinued Operations and Disposal Groups [Abstract]
 
 
 
 
 
Net sales
$ 23,025 
$ 100,363 
$ 57,284 
$ 198,816 
 
Earnings / (loss) from discontinued operations before income taxes (1)
153 1
(2,961)1
(39,959)1
(4,941)1
 
Income tax benefit / (expense)
(3,759)
767 
8,956 
1,481 
 
Gain / (loss) on sale of businesses (2)
(10,778)2
(4,424)2
(10,613)2
(4,424)2
 
Loss from discontinued operations, net of taxes
(14,384)
(6,618)
(41,616)
(7,884)
 
Impairment of Long-Lived Assets to be Disposed of
 
 
40,813 
0 
 
Discontinued Operation, Tax Effect of Gain (Loss) from Disposal of Discontinued Operation
$ 3,141 
 
$ 3,065 
 
$ 7,000 
DISCONTINUED OPERATIONS (Held for Sale Income Statement) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Income Statement Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
 
 
 
 
Net sales
$ 23,025 
$ 100,363 
$ 57,284 
$ 198,816 
Earnings/ (loss) before income taxes
153 1
(2,961)1
(39,959)1
(4,941)1
Discontinued Operations, Held-for-sale [Member]
 
 
 
 
Income Statement Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
 
 
 
 
Net sales
4,878 
5,456 
10,365 
12,932 
Earnings/ (loss) before income taxes
(256)
29 
(113)
1,241 
Surface Technologies Domestic [Member]
 
 
 
 
Income Statement Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
 
 
 
 
Net sales
926 
1,157 
2,036 
2,485 
Earnings/ (loss) before income taxes
(434)
(144)
(396)
21 
Engineered Packaging [Member]
 
 
 
 
Income Statement Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
 
 
 
 
Net sales
3,952 
4,299 
8,329 
10,447 
Earnings/ (loss) before income taxes
$ 178 
$ 173 
$ 283 
$ 1,220 
DISCONTINUED OPERATIONS (Divested) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Income Statement Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
 
 
 
 
Net sales
$ 23,025 
$ 100,363 
$ 57,284 
$ 198,816 
Earnings/ (loss) before income taxes
153 1
(2,961)1
(39,959)1
(4,941)1
Discontinued Operations, Disposed of by Sale [Member]
 
 
 
 
Income Statement Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
 
 
 
 
Net sales
18,147 
94,907 
46,919 
185,884 
Earnings/ (loss) before income taxes
$ 409 
$ (2,990)
$ (39,846)
$ (6,182)
DISCONTINUED OPERATIONS (Narrative) (Details)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended 12 Months Ended 3 Months Ended 6 Months Ended 0 Months Ended
Jun. 30, 2015
USD ($)
facility
Mar. 31, 2015
facility
Jun. 30, 2015
USD ($)
Jun. 30, 2014
USD ($)
Dec. 31, 2014
USD ($)
facility
Sep. 30, 2014
Surface Technologies Domestic [Member]
facility
Jun. 30, 2015
Downstream [Member]
USD ($)
Jan. 9, 2015
Aviation Ground Support [Member]
USD ($)
Jan. 9, 2015
Aviation Ground Support [Member]
GBP (£)
Jul. 1, 2015
Subsequent Event [Member]
Engineered Packaging [Member]
USD ($)
Income Statement Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
 
 
 
 
 
 
 
 
 
 
Disposable Group Including Discontinued Business Number of Facilities to be Disposed of
1 
1 
 
 
4 
2 
 
 
 
 
Proceeds from divestitures, net of cash sold and transaction costs
 
 
$ 22,730 
$ 52,098 
$ 153,000 
 
$ 19,000 
$ 4,000 
£ 3,000 
$ 13,000 
Discontinued Operation, Tax Effect of Gain (Loss) from Disposal of Discontinued Operation
(3,141)
 
(3,065)
 
(7,000)
 
 
 
 
 
Impairment of Long-Lived Assets to be Disposed of
 
 
40,813 
0 
 
 
40,000 
 
 
 
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax
 
 
$ (13,498)
$ (7,106)
$ (29,000)
 
$ (14,000)
 
 
 
ACQUISITION (Narrative) (Detail) (Bolts Metallizing Inc [Member], Commercial Industrial [Member], USD $)
In Millions, unless otherwise specified
0 Months Ended 6 Months Ended
Mar. 16, 2015
Jun. 30, 2015
Bolts Metallizing Inc [Member] |
Commercial Industrial [Member]
 
 
Business Acquisition [Line Items]
 
 
Effective date of acquisition
 
Mar. 16, 2015 
Purchase price net of cash acquired
$ 13.2 
 
RECEIVABLES (Detail) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Billed receivables:
 
 
Trade and other receivables
$ 384,528 
$ 363,241 
Less: Allowance for doubtful accounts
(6,646)
(5,619)
Net billed receivables
377,882 
357,622 
Unbilled receivables:
 
 
Recoverable costs and estimated earnings not billed
155,674 
150,526 
Less: Progress payments applied
(10,344)
(12,668)
Net unbilled receivables
145,330 
137,858 
Receivables, net
$ 523,212 
$ 495,480 
INVENTORIES (Detail) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Inventory, Net [Abstract]
 
 
Raw material
$ 218,262 
$ 201,998 
Work-in-process
85,366 
89,423 
Finished goods and component parts
113,081 
103,831 
Inventoried costs related to long-term contracts
50,134 
59,070 
Gross inventories
466,843 
454,322 
Less: Inventory reserves
(51,889)
(51,435)
Progress payments applied
(14,284)
(14,217)
Inventories, net
$ 400,670 
$ 388,670 
INVENTORIES (Narrative) (Detail) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Inventory, Net [Abstract]
 
 
Other inventory, capitalized costs
$ 30.4 
$ 33.9 
Other inventory, capitalized costs to be liquidated under firm orders
$ 3.0 
$ 7.2 
GOODWILL (Detail) (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2015
Goodwill [Roll Forward]
 
December 31, 2014
$ 998,506 
Acquisitions
4,238 
Goodwill adjustments
1,131 
Foreign currency translation adjustment
(12,592)
June 30, 2015
991,283 
Commercial Industrial [Member]
 
Goodwill [Roll Forward]
 
December 31, 2014
454,092 
Acquisitions
4,238 
Goodwill adjustments
0 
Foreign currency translation adjustment
(3,571)
June 30, 2015
454,759 
Defense [Member]
 
Goodwill [Roll Forward]
 
December 31, 2014
356,689 
Acquisitions
0 
Goodwill adjustments
1,131 
Foreign currency translation adjustment
(8,781)
June 30, 2015
349,039 
Power [Member]
 
Goodwill [Roll Forward]
 
December 31, 2014
187,725 
Acquisitions
0 
Goodwill adjustments
0 
Foreign currency translation adjustment
(240)
June 30, 2015
$ 187,485 
OTHER INTANGIBLE ASSETS, NET (Detail) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Finite Lived Intangible Assets [Line Items]
 
 
Gross
$ 572,046 
$ 573,673 
Accumulated Amortization
(238,054)
(224,446)
Net
333,992 
349,227 
Technology [Member]
 
 
Finite Lived Intangible Assets [Line Items]
 
 
Gross
174,422 
178,369 
Accumulated Amortization
(88,444)
(84,584)
Net
85,978 
93,785 
Customer Related Intangibles [Member]
 
 
Finite Lived Intangible Assets [Line Items]
 
 
Gross
359,682 
356,844 
Accumulated Amortization
(132,005)
(122,920)
Net
227,677 
233,924 
Other Intangible Assets [Member]
 
 
Finite Lived Intangible Assets [Line Items]
 
 
Gross
37,942 
38,460 
Accumulated Amortization
(17,605)
(16,942)
Net
$ 20,337 
$ 21,518 
OTHER INTANGIBLE ASSETS, NET (Narrative) (Detail) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Finite Lived Intangible Assets [Line Items]
 
 
Amortization expense
$ 17.2 
$ 19.8 
Future amortization expense in remainder of fiscal year
34.7 
 
Future amortization expense in year two
34.3 
 
Future amortization expense in year three
33.8 
 
Future amortization expense in year four
32.7 
 
Future amortization expense in year five
30.9 
 
Customer-Related Intangible Assets [Member]
 
 
Finite Lived Intangible Assets [Line Items]
 
 
Acquired intangible assets
$ 7.7 
 
FAIR VALUE OF FINANCIAL INSTRUMENTS (Interest Rate Swap) (Detail) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2015
Fair Value Disclosures [Abstract]
 
Notional amount
$ 400 
FAIR VALUE OF FINANCIAL INSTRUMENTS (Balance Sheet) (Detail) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Assets
$ 56 1
$ 605 1
Liabilities
9,807 2
5,797 2
Designated as Hedging Instrument [Member] |
Interest Rate Swap [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Liabilities
9,443 
5,121 
Not Designated as Hedging Instrument [Member] |
Foreign Exchange Forward [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Assets
56 
605 
Liabilities
$ 364 
$ 676 
FAIR VALUE OF FINANCIAL INSTRUMENTS (Income Loss) (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
General And Administrative Expense [Member]
 
 
 
 
Derivative Instruments Gain Loss [Line Items]
 
 
 
 
General and administrative expenses
$ 2,528 
$ 2,020 
$ 1,556 
$ (930)
Swap [Member] |
Other Income [Member]
 
 
 
 
Derivative Instruments Gain Loss [Line Items]
 
 
 
 
Gain / (loss) on interest rate swaps
(16,232)
12,159 
(4,322)
24,934 
Borrowings [Member] |
Other Income [Member]
 
 
 
 
Derivative Instruments Gain Loss [Line Items]
 
 
 
 
Gain / (loss) on interest rate swaps
$ 16,232 
$ (12,159)
$ 4,322 
$ (24,934)
FAIR VALUE OF FINANCIAL INSTRUMENTS (Debt) (Detail) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Carrying Value
$ 949,996 
$ 954,348 
Estimated Fair Value
959,728 
968,514 
Industrial revenue bond, due 2023 [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Carrying Value
8,400 
8,400 
Estimated Fair Value
8,400 
8,400 
Revolving credit agreement, due 2017 [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Carrying Value
0 
0 
Estimated Fair Value
0 
0 
5.51% Senior notes due 2017 [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Carrying Value
150,000 
150,000 
Estimated Fair Value
161,000 
162,617 
Debt Instrument, Interest Rate, Stated Percentage
5.51% 
 
3.84% Senior notes due 2021 [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Carrying Value
99,988 
99,934 
Estimated Fair Value
99,988 
99,934 
Debt Instrument, Interest Rate, Stated Percentage
3.84% 
 
3.70% Senior notes due 2023 [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Carrying Value
225,000 
225,000 
Estimated Fair Value
224,473 
225,748 
Debt Instrument, Interest Rate, Stated Percentage
3.70% 
 
3.85% Senior notes due 2025 [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Carrying Value
97,721 
98,360 
Estimated Fair Value
97,721 
98,360 
Debt Instrument, Interest Rate, Stated Percentage
3.85% 
 
4.24% Senior notes due 2026 [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Carrying Value
194,733 
197,237 
Estimated Fair Value
194,733 
197,237 
Debt Instrument, Interest Rate, Stated Percentage
4.24% 
 
4.05% Senior notes due 2028 [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Carrying Value
73,116 
74,348 
Estimated Fair Value
73,116 
74,348 
Debt Instrument, Interest Rate, Stated Percentage
4.05% 
 
4.11% Senior Notes [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Carrying Value
100,000 
100,000 
Estimated Fair Value
99,259 
100,801 
Debt Instrument, Interest Rate, Stated Percentage
4.11% 
 
Other debt [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Carrying Value
1,038 
1,069 
Estimated Fair Value
$ 1,038 
$ 1,069 
FAIR VALUE OF FINANCIAL INSTRUMENTS FAIR VALUE OF FINANCIAL INSTRUMENTS (Nonrecurring measurements) (Detail) (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Impairment of Long-Lived Assets to be Disposed of
$ 40,813 
$ 0 
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Detail) (Pension Plans Defined Benefit [Member], USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Pension Plans Defined Benefit [Member]
 
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
Service cost
$ 7,137 
$ 6,372 
$ 14,273 
$ 12,742 
Interest cost
7,497 
7,552 
14,988 
15,096 
Expected return on plan assets
(13,688)
(10,425)
(27,367)
(20,838)
Amortization of prior service cost
156 
157 
311 
315 
Amortization of unrecognized actuarial loss
3,866 
1,483 
7,731 
2,966 
Net postretirement benefit cost (income)
$ 4,968 
$ 5,139 
$ 9,936 
$ 10,281 
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Additional) (Detail) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined Contribution Plan, Employer Contribution, Percentage, Maximum
6.00% 
 
Defined Contribution Plan, Cost Recognized
$ 7.5 
$ 7.7 
Domestic Defined Benefit Plan [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Contributions by employer
145.0 
 
Foreign Postretirement Benefit Plan [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Contributions by employer
1.8 
 
Future employer contributions
$ 3.0 
 
EARNINGS PER SHARE (Detail)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Earnings Per Share Reconciliation [Abstract]
 
 
 
 
Basic weighted-average shares outstanding (shares)
47,224 
48,175 
47,466 
48,055 
Dilutive effect of stock options and deferred stock compensation (shares)
1,034 
1,064 
1,021 
1,105 
Diluted weighted-average shares outstanding (shares)
48,258 
49,239 
48,487 
49,160 
SEGMENT INFORMATION (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
segment
Jun. 30, 2014
Dec. 31, 2014
Segment Reporting Information [Line Items]
 
 
 
 
 
Number of Reportable Segments
 
 
3 
 
 
Net sales
$ 545,194 
$ 569,198 
$ 1,091,393 
$ 1,112,157 
 
Operating income (expense)
65,442 
72,159 
138,277 
133,193 
 
Identifiable assets
3,112,611 
 
3,112,611 
 
3,399,511 
Commercial Industrial [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Net sales
305,074 
315,114 
604,972 
617,131 
 
Operating income (expense)
45,253 
45,750 
88,542 
84,246 
 
Identifiable assets
1,561,489 
 
1,561,489 
 
1,534,882 
Defense [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Net sales
120,149 
118,889 
234,501 
232,042 
 
Operating income (expense)
24,391 
18,002 
42,418 
33,786 
 
Identifiable assets
806,804 
 
806,804 
 
837,891 
Power [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Net sales
121,661 
137,320 
256,796 
267,595 
 
Operating income (expense)
1,454 
14,865 
20,966 
29,140 
 
Identifiable assets
581,061 
 
581,061 
 
588,366 
Intersegment Eliminations [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Net sales
(1,690)
(2,125)
(4,876)
(4,611)
 
Corporate and Eliminations [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Operating income (expense)
(5,656)1
(6,458)1
(13,649)1
(13,979)1
 
Corporate and Other [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Identifiable assets
148,496 
 
148,496 
 
291,025 
Discontinued Operations, Held-for-sale or Disposed of by Sale [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Identifiable assets
$ 14,761 
 
$ 14,761 
 
$ 147,347 
SEGMENT INFORMATION (Reconciliation) (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Segment Reporting [Abstract]
 
 
 
 
Total operating income
$ 65,442 
$ 72,159 
$ 138,277 
$ 133,193 
Interest expense
(8,985)
(8,986)
(17,981)
(18,041)
Other income, net
(37)
(23)
444 
89 
Earnings from continuing operations before income taxes
$ 56,420 
$ 63,150 
$ 120,740 
$ 115,241 
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Dec. 31, 2014
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
 
 
 
 
Beginning balance
 
 
$ (128,411)
$ 25,259 
$ 25,259 
Other comprehensive income (loss) before reclassifications
 
 
(24,551)1
 
 
Amounts reclassified from accumulated other comprehensive loss
 
 
4,728 1
 
 
Other comprehensive income (loss), net of tax
34,247 
18,651 
(19,823)
9,520 
(153,670)
Ending balance
(148,234)
 
(148,234)
 
(128,411)
Foreign Currency Translation Adjustments, Net [Member]
 
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
 
 
 
 
Beginning balance
 
 
(20,283)
59,103 
59,103 
Other comprehensive income (loss) before reclassifications
 
 
(24,592)1
 
 
Amounts reclassified from accumulated other comprehensive loss
 
 
0 1
 
 
Other comprehensive income (loss), net of tax
 
 
(24,592)
 
(79,386)
Ending balance
(44,875)
 
(44,875)
 
(20,283)
Total Pension and Postretirment Adjustments, Net [Member]
 
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
 
 
 
 
Beginning balance
 
 
(108,128)
(33,844)
(33,844)
Other comprehensive income (loss) before reclassifications
 
 
41 1
 
 
Amounts reclassified from accumulated other comprehensive loss
 
 
4,728 1
 
 
Other comprehensive income (loss), net of tax
 
 
4,769 
 
(74,284)
Ending balance
$ (103,359)
 
$ (103,359)
 
$ (108,128)
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Reclass) (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
Earnings from continuing operations before income taxes
$ 56,420 
$ 63,150 
$ 120,740 
$ 115,241 
Reclassification out of Accumulated Other Comprehensive Income [Member] |
Total Pension and Postretirment Adjustments, Net [Member]
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
Amortization of prior service costs
 
 
17 1
 
Amortization of actuarial losses
 
 
(7,456)1
 
Earnings from continuing operations before income taxes
 
 
(7,439)
 
Income tax
 
 
2,711 
 
Net earnings
 
 
$ (4,728)
 
CONTINGENCIES AND COMMITMENTS (Detail) (USD $)
0 Months Ended
Jun. 30, 2015
Jun. 30, 2015
Standby Letters Of Credit [Member]
Dec. 31, 2014
Standby Letters Of Credit [Member]
Jun. 30, 2015
FinancialStandbyLetterOfCreditMember
Dec. 31, 2014
FinancialStandbyLetterOfCreditMember
Oct. 10, 2013
Failure to Meet Contractual Obligations [Member]
Jun. 30, 2015
Discontinued Operations, Held-for-sale [Member]
Standby Letters Of Credit [Member]
Jun. 30, 2015
Surety Bond [Member]
Jun. 30, 2015
Damage from Fire, Explosion or Other Hazard [Member]
Loss Contingencies [Line Items]
 
 
 
 
 
 
 
 
 
Estimated Litigation Liability
 
 
 
 
 
 
 
 
$ 1,000,000,000 
Letters of credit, outstanding
 
51,700,000 
54,300,000 
15,600,000 
20,700,000 
 
7,100,000 
 
 
Surety Bond Outstanding
 
 
 
 
 
 
 
52,900,000 
 
Damages sought
 
 
 
 
 
25,000,000 
 
 
 
Range of possible loss, minimum
0 
 
 
 
 
 
 
 
 
Range of possible loss, maximum
$ 48,000,000 
 
 
 
 
 
 
 
 
SUBSEQUENT EVENTS (Details) (USD $)
6 Months Ended 12 Months Ended 0 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Dec. 31, 2014
Jul. 1, 2015
Subsequent Event [Member]
Engineered Packaging [Member]
Jul. 1, 2015
Subsequent Event [Member]
Industrial revenue bond, due 2023 [Member]
Subsequent Event [Line Items]
 
 
 
 
 
Repayments of Long-term Debt
 
 
 
 
$ 8,400,000 
Proceeds from divestitures, net of cash sold and transaction costs
$ 22,730,000 
$ 52,098,000 
$ 153,000,000 
$ 13,000,000