CURTISS WRIGHT CORP, 10-Q filed on 5/1/2014
Quarterly Report
Document and Entity Information
3 Months Ended
Mar. 31, 2014
Apr. 30, 2014
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
Mar. 31, 2014 
 
Document Fiscal Year Focus
2014 
 
Document Fiscal Period Focus
Q1 
 
Amendment Flag
false 
 
Entity common stock shares outstanding
 
48,188,704 
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
Mar. 31, 2014
Mar. 31, 2013
Net sales
 
 
Product sales
$ 526,354 
$ 486,584 
Service sales
115,058 
106,103 
Total net sales
641,412 
592,687 
Cost of sales
 
 
Cost of product sales
363,654 
339,626 
Cost of service sales
75,606 
69,354 
Total cost of sales
439,260 
408,980 
Gross profit
202,152 
183,707 
Research and development expenses
18,349 
17,608 
Selling expenses
39,638 
36,796 
General and administrative expenses
85,064 
91,277 
Operating income
59,101 
38,026 
Interest expense
(9,054)
(8,659)
Other income, net
65 
474 
Earnings before income taxes
50,112 
29,841 
Provision for income taxes
14,948 
8,898 
Net earnings
$ 35,164 
$ 20,943 
Earnings Per Share [Abstract]
 
 
Basic earnings per share (usd per share)
$ 0.73 
$ 0.45 
Diluted earnings per share (usd per share)
$ 0.72 
$ 0.44 
Dividends per share
$ 0.13 
$ 0.09 
Weighted average shares outstanding:
 
 
Basic (shares)
47,982 
46,615 
Diluted (shares)
49,130 
47,483 
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Statement of Comprehensive Income [Abstract]
 
 
Net earnings
$ 35,164 
$ 20,943 
Other comprehensive income
 
 
Foreign currency translation, net of tax (1)
(9,917)1
(31,805)1
Pension and postretirement adjustments, net of tax (2)
786 2
2,786 2
Other comprehensive income (loss), net of tax
(9,131)
(29,019)
Comprehensive income (loss)
$ 26,033 
$ (8,076)
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parentheticals) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Statement of Comprehensive Income [Abstract]
 
 
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax
$ (0.3)
$ 1.2 
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Tax, Portion Attributable to Parent
$ (0.5)
$ (1.5)
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2014
Dec. 31, 2013
Current Assets:
 
 
Cash and cash equivalents
$ 127,967 
$ 175,294 
Receivables, net
618,418 
603,592 
Inventories, net
467,708 
452,087 
Deferred tax assets, net
49,841 
47,650 
Other current assets
56,872 
58,660 
Total current assets
1,320,806 
1,337,283 
Property, plant, and equipment, net
515,811 
515,718 
Goodwill
1,125,605 
1,110,429 
Other intangible assets, net
470,967 
471,379 
Other assets
25,446 
23,465 
Total assets
3,458,635 
3,458,274 
Current liabilities:
 
 
Current portion of long-term debt and short-term debt
705 
1,334 
Accounts payable
173,708 
186,941 
Accrued expenses
125,020 
142,935 
Income taxes payable
2,832 
789 
Deferred revenue
155,430 
164,343 
Other current liabilities
41,930 
38,251 
Total current liabilities
499,625 
534,593 
Long-term debt
971,330 
958,604 
Deferred tax liabilities, net
128,227 
123,644 
Accrued pension and other postretirement benefit costs
134,288 
138,904 
Long-term portion of environmental reserves
14,874 
15,498 
Other liabilities
113,947 
134,326 
Total liabilities
1,862,291 
1,905,569 
Stockholders' Equity
 
 
Common stock, $1 par value,100,000,000 shares authorized at March 31, 2014 and December 31, 2013; 49,189,702 shares issued at March 31, 2014 and December 31,2013; outstanding shares were 48,272,665 at March 31, 2014 and 47,638,835 at December 31, 2013.
49,190 
49,190 
Additional paid in capital
155,017 
150,618 
Retained earnings
1,409,859 
1,380,981 
Accumulated other comprehensive loss
16,128 
25,259 
Common treasury stock, at cost (917,037 shares at March 31, 2014 and 1,550,867 shares at December 31, 2013)
(33,850)
(53,343)
Total stockholders' equity
1,596,344 
1,552,705 
Total liabilities and stockholders' equity
$ 3,458,635 
$ 3,458,274 
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
Mar. 31, 2014
Dec. 31, 2013
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
48,272,665 
47,638,835 
Treasury Stock, Shares
917,037 
1,550,867 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Cash flows from operating activities:
 
 
Net earnings
$ 35,164 
$ 20,943 
Adjustments to reconcile net earnings to net cash used by operating activities:
 
 
Depreciation and amortization
30,952 
30,400 
Net gain on sale of assets
(17)
(87)
Deferred income taxes
(2,940)
512 
Share-based compensation
2,402 
2,670 
Change in operating assets and liabilities, net of businesses acquired and divested:
 
 
Accounts receivable, net
(10,842)
(3,959)
Inventories, net
(14,515)
(10,872)
Progress payments
(4,777)
(9,240)
Accounts payable and accrued expenses
(42,490)
(36,541)
Deferred revenue
(8,913)
77 
Income taxes payable
10,871 
(1,678)
Net pension and postretirement liabilities
(4,154)
4,934 
Other current and long-term assets and liabilities
(5,334)
1,761 
Net cash used for operating activities
(14,593)
(1,080)
Cash flows from investing activities:
 
 
Proceeds from sales and disposals of long lived assets
429 
559 
Additions to property, plant, and equipment
(18,365)
(15,010)
Acquisition of businesses, net of cash acquired
(32,857)
(98,492)
Additional consideration of prior period acquisitions
(230)
(1,771)
Net cash used for investing activities
(51,023)
(114,714)
Cash flows from financing activities:
 
 
Borrowings under revolving credit facility
163,483 
417,075 
Borrowings on debt
0 
400,000 
Payment of revolving credit facility
(164,089)
(699,120)
Principal payments on debt
(80)
0 
Repurchases of common stock
(5,013)
0 
Proceeds from share-based compensation
21,135 
7,333 
Excess tax benefits from share-based compensation
5,409 
0 
Net cash provided by financing activities
20,845 
125,288 
Effect of exchange-rate changes on cash
(2,556)
(2,720)
Net increase (decrease) in cash and cash equivalents
(47,327)
6,774 
Cash and cash equivalents at beginning of period
175,294 
112,023 
Cash and cash equivalents at end of period
127,967 
118,797 
Supplemental disclosure of non-cash activities:
 
 
Capital expenditures incurred but not yet paid
1,160 
2,191 
Property and equipment acquired under build to suit transaction
$ 8,008 
$ 0 
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 Income (Loss) Member
Treasury Stock Member
Beginning Balance at Dec. 31, 2012
 
$ 49,190 
$ 151,883 
$ 1,261,377 
$ (55,508)
$ (94,350)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
Net earnings
 
 
 
137,981 
 
 
Other comprehensive income, net of tax
80,767 
 
 
 
80,767 
 
Dividends paid/declared
 
 
 
(18,377)
 
 
Stock options exercised, net of tax
 
 
(5,728)
 
 
34,451 
Restricted stock
 
 
(2,127)
 
 
5,796 
Share-based compensation
 
 
6,920 
 
 
430 
Other
 
 
(330)
 
 
330 
Ending Balance at Dec. 31, 2013
1,552,705 
49,190 
150,618 
1,380,981 
25,259 
(53,343)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
Net earnings
35,164 
 
 
35,164 
 
 
Other comprehensive income, net of tax
(9,131)
 
 
 
(9,131)
 
Dividends paid/declared
 
 
 
(6,286)
 
 
Stock options exercised, net of tax
 
0 
4,649 
 
 
20,752 
Restricted stock
 
 
(2,052)
 
 
3,154 
Share-based compensation
 
 
2,179 
 
 
223 
Repurchases of common stock
 
 
 
 
 
(5,013)
Other
 
 
(377)
 
 
377 
Ending Balance at Mar. 31, 2014
$ 1,596,344 
$ 49,190 
$ 155,017 
$ 1,409,859 
$ 16,128 
$ (33,850)
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 systems and provides highly engineered products and services to the commercial/industrial, defense, and energy markets.

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 in conformity with accounting principles generally accepted in the United States of America, which requires management 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. In the three month periods ended March 31, 2014 and 2013, there were no 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 2013 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

As a result of certain organizational changes in 2014, the Corporation revised its reportable segments to align to the major markets it currently serves: Commercial/Industrial, Defense, and Energy. Prior period financial information has been reclassified to conform to the current period presentation. The change in reportable segments did not impact the Corporation's previously reported Condensed Consolidated Financial Statements. See Note 10 of the Notes to the Condensed Consolidated Financial Statements for more information on the Corporation's reportable segments.

Corrections to Prior Years Amounts

The presentation of net sales and cost of sales in the prior year's statement of earnings has been corrected to separately present the components of product and service revenues and costs of sales. This change in presentation did not affect total revenues, total cost of sales, total gross profit, operating income, or net earnings.
ACQUISITION
ACQUISITION
ACQUISITIONS

The Corporation evaluates potential acquisitions that either strategically fit within the Corporation’s existing portfolio or expand the Corporation’s portfolio into new product lines or adjacent markets. The Corporation has completed a number of acquisitions that have been accounted for as business combinations and have resulted in the recognition of goodwill in the Corporation's financial statements. This goodwill arises because the purchase prices for these businesses reflect the future earnings and cash flow potential in excess of the earnings and cash flows attributable to the current product and customer set at the time of acquisition.  Thus, goodwill inherently includes the know-how of the assembled workforce, the ability of the workforce to further improve the technology and product offerings, and the expected cash flows resulting from these efforts.  Goodwill may also include expected synergies resulting from the complementary strategic fit these businesses bring to existing operations.

The Corporation allocates the purchase price at the date of acquisition based upon its understanding of the fair value of the acquired assets and assumed liabilities. In the months after closing, as the Corporation obtains additional information about these assets and liabilities, including through tangible and intangible asset appraisals, and as the Corporation learns more about the newly acquired business, it is able to refine the estimates of fair value and more accurately allocate the purchase price.  Adjustments to the purchase price allocation are made only for those items identified as of the acquisition date and prior to completion of the measurement period.

The Corporation acquired two businesses during the three months ended March 31, 2014, described in more detail below.

The amounts of net sales and net loss included in the Corporation’s consolidated statement of earnings from the acquisition date to the period ended March 31, 2014 are $2.7 million and $0.3 million, respectively.

COMMERCIAL/INDUSTRIAL

Component Coating and Repair Services Limited

On January 10, 2014, the Corporation acquired 100% of the issued and outstanding capital stock of Component Coating and Repair Services Limited (CCRS) for approximately £15 million ($25 million) in cash, net of cash acquired. The Share 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 deposited into escrow as security for potential indemnification claims against the sellers. CCRS operates out of two locations in Glasgow and Alfreton in the United Kingdom and will operate within the Corporation's Commercial/Industrial segment. CCRS is a provider of corrosion resistant coatings and precision airfoil repair services for aerospace and industrial turbine applications. Revenues were approximately £6.4 million in the latest fiscal year ending May 31, 2013.

The purchase price of the acquisition has been allocated to the net tangible and intangible assets acquired with the remainder recorded as goodwill on the basis of estimated fair values, as follows:
(In thousands)
CCRS

Accounts receivable
$
2,984

Inventory
64

Property, plant, and equipment
1,987

Other current and non-current assets
71

Intangible assets
9,560

Current and non-current liabilities
(1,754
)
Due from Seller
248

Deferred income taxes
(2,058
)
Net tangible and intangible assets
11,102

Purchase price
24,892

Goodwill
$
13,790

 
 
Amount of tax deductible goodwill
$
—





ENERGY

Nuclear Power Services Inc.

On February 18, 2014, the Corporation acquired certain assets and assumed certain liabilities of Nuclear Power Services Inc. (NPSI) for approximately CAD 9 million (approximately $8.0 million) in cash. The Asset Purchase Agreement contains 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. NPSI is based in Ontario, Canada and will operate within the Corporation's Energy segment. NPSI provides qualified nuclear component sourcing, Equipment Qualification, Commercial Grade Dedication (CGD) services, and Instrumentation & Control component manufacturing primarily to the Canadian and International CANDU nuclear industry. NPSI generated revenues of approximately CAD 5 million for the year ended December 31, 2013.

Supplemental Pro Forma Statements of Operations Data

The assets, liabilities and results of operations of the businesses acquired in 2014 were not material to the Corporation’s consolidated financial position or results of operations and therefore pro forma financial information for the acquisitions are not presented.

As it relates to the prior year, the following table presents unaudited consolidated pro forma financial information for the combined results of the Corporation and its completed business acquisitions during the year ended December 31, 2013 as if the acquisitions had occurred on January 1, 2013 for purposes of the financial information presented for the period ended March 31, 2013.
 
 
Three Months Ended
 
 
March 31,
(In thousands, except per share data)
 
2013
Net sales
 
$
621,219

Net earnings
 
22,054

Diluted earnings per share
 
0.46



The unaudited pro forma consolidated results were prepared using the acquisition method of accounting and are based on historical financial information. The unaudited pro forma consolidated results are not necessarily indicative of what our consolidated results of operations actually would have been had we completed the acquisitions on January 1, 2013. In addition, the unaudited pro forma consolidated results do not purport to project the future results of operations of the combined company nor do they reflect the expected realization of any cost savings associated with the acquisition. The unaudited pro forma consolidated results reflect primarily the following pro forma pre-tax adjustments:

•
Additional amortization expense related to the fair value of identifiable intangible assets acquired of approximately $1.6 million.
•
Additional interest expense associated with the incremental borrowings that would have been incurred to acquire these companies as of January 1, 2013 of $1.8 million.
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)
 
March 31, 2014
 
December 31, 2013
Billed receivables:
 
 
 
Trade and other receivables
$
453,190

 
$
444,841

Less: Allowance for doubtful accounts
(6,390
)
 
(6,857
)
Net billed receivables
446,800

 
437,984

Unbilled receivables:
 
 
 
Recoverable costs and estimated earnings not billed
187,801

 
184,120

Less: Progress payments applied
(16,183
)
 
(18,512
)
Net unbilled receivables
171,618

 
165,608

Receivables, net
$
618,418

 
$
603,592

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)
 
March 31, 2014
 
December 31, 2013
Raw materials
$
245,619

 
$
231,219

Work-in-process
113,974

 
114,372

Finished goods and component parts
123,650

 
117,444

Inventoried costs related to long-term contracts
51,490

 
58,796

Gross inventories
534,733

 
521,831

Less:  Inventory reserves
(54,129
)
 
(54,400
)
Progress payments applied
(12,896
)
 
(15,344
)
Inventories, net
$
467,708

 
$
452,087



As of March 31, 2014 and December 31, 2013, inventory also includes capitalized contract development costs of $37.3 million and $37.1 million, respectively, related to certain aerospace and defense programs. These capitalized costs will be liquidated as production units are delivered to the customer. As of March 31, 2014 and December 31, 2013, $9.8 million and $13.8 million, respectively, are scheduled to be liquidated under existing firm orders.
GOODWILL
GOODWILL
GOODWILL

In connection with the change in reportable segments discussed in Note 10, we reallocated the goodwill that existed as of December 31, 2013 to our new segments on a relative fair value basis.

The changes in the carrying amount of goodwill for the three months ended March 31, 2014 are as follows:
 
(In thousands)
 
Commercial/ Industrial
 
Defense
 
Energy
 
Consolidated
December 31, 2013
$
347,819

 
$
485,431

 
$
277,179

 
$
1,110,429

Acquisitions
13,790

 
—

 
3,640

 
17,430

Goodwill adjustments
—

 
(254
)
 
—

 
(254
)
Foreign currency translation adjustment
453

 
(2,092
)
 
(361
)
 
(2,000
)
March 31, 2014
$
362,062

 
$
483,085

 
$
280,458

 
$
1,125,605



During the first quarter of 2014, the Corporation performed a goodwill impairment assessment as a result of the change in its reportable segments. The Corporation tests for goodwill impairment at the reporting unit level, which is one level below the operating segment. The Corporation allocated goodwill to each reporting unit based on its relative fair value and then compared the fair value of the reporting units to the reporting units carrying amount and determined that goodwill was not impaired since the fair values of each of the reporting units substantially exceeded their carrying amounts, with the exception of the Oil and Gas reporting unit, in the Energy segment. Based on the results of our impairment analysis, the Corporation does not believe that an impairment exists. For further discussion on the Corporation’s interim impairment analysis please refer to our Critical Accounting Policy section in Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
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:
 
 
(In thousands)
March 31, 2014
 
Gross
 
Accumulated Amortization
 
Net
Technology
 
$
213,202

 
$
(91,628
)
 
$
121,574

Customer related intangibles
 
452,118

 
(134,244
)
 
317,874

Other intangible assets
 
56,988

 
(25,469
)
 
31,519

Total
 
$
722,308

 
$
(251,341
)
 
$
470,967

 
 
 
 
 
 
 
 
 
(In thousands)
December 31, 2013
 
Gross
 
Accumulated Amortization
 
Net
Technology
 
$
213,888

 
$
(88,644
)
 
$
125,244

Customer related intangibles
 
430,604

 
(127,194
)
 
303,410

Other intangible assets
 
66,436

 
(23,711
)
 
42,725

Total
 
$
710,928

 
$
(239,549
)
 
$
471,379



During the first three months of 2014, the Corporation acquired intangible assets of $13.0 million. The Corporation acquired Customer related intangibles of $12.8 million and Other intangibles of $0.2 million, which have a weighted average amortization period of 13.5 and 1.0 years, respectively.
Total intangible amortization expense for the three months ended March 31, 2014 was $12.7 million as compared to $12.4 million in the prior year period.  The estimated amortization expense for the five years ending December 31, 2014 through 2018 is $48.5 million, $45.4 million, $44.1 million, $43.5 million, and $41.9 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 March 31, 2014.

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)
 
March 31, 2014
 
December 31, 2013
Assets
 
 
 
Undesignated for hedge accounting
 
 
 
Forward exchange contracts
$
67

 
$
605

Total asset derivatives (A)
$
67

 
$
605

Liabilities
 
 
 
Designated for hedge accounting
 
 
 
Interest rate swaps
$
37,070

 
$
49,845

Undesignated for hedge accounting
 
 
 
Forward exchange contracts
$
193

 
$
277

Total liability derivatives (B)
$
37,263

 
$
50,122



(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 months ended March 31, were as follows:
 
 
Gain/(Loss) on Swap
 
Gain/(Loss) on Borrowings
 
 
Three Months Ended
 
Three Months Ended
(In thousands)
 
March 31,
 
March 31,
Income Statement Classification
 
2014
 
2013
 
2014
 
2013
Other income, net
 
$
12,775

 
$
(10,950
)
 
$
(12,775
)
 
$
10,950



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 months ended March 31, were as follows:
 
 
Three Months Ended
(In thousands)
 
March 31,
Derivatives not designated as hedging instrument
 
2014
 
2013
Forward exchange contracts:
 
 
 
 
General and administrative expenses
 
$
(2,950
)
 
$
(1,561
)


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 March 31, 2014.  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.

The carrying amount of the variable interest rate debt approximates fair value as the interest rates are reset periodically to reflect current market conditions.

 
(In thousands)
 
March 31, 2014
 
December 31, 2013
 
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 2017
50,000

 
50,000

 
50,000

 
50,000

5.51% Senior notes due 2017
150,000

 
163,324

 
150,000

 
163,059

3.84% Senior notes due 2021
99,027

 
99,027

 
98,632

 
98,632

3.70% Senior notes due 2023
225,000

 
216,947

 
225,000

 
209,140

3.85% Senior notes due 2025
91,564

 
91,564

 
88,555

 
88,555

4.24% Senior notes due 2026
180,096

 
180,096

 
173,557

 
173,557

4.05% Senior notes due 2028
67,243

 
67,243

 
64,411

 
64,411

4.11% Senior notes due 2028
100,000

 
92,569

 
100,000

 
89,252

Other debt
705

 
705

 
1,383

 
1,383

Total debt
$
972,035

 
$
969,875

 
$
959,938

 
$
946,389

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 2013Annual Report on Form 10-K.  The postretirement benefits information includes the domestic Curtiss-Wright Corporation, Williams, and EMD postretirement benefit plans, as there are no foreign postretirement benefit plans.

Pension Plans

The components of net periodic pension cost for the three months ended March 31, 2014 and 2013 are as follows:

 
 
(In thousands)
 
 
Three Months Ended
 
 
March 31,
 
 
2014
 
2013
Service cost
 
$
6,370

 
$
10,819

Interest cost
 
7,544

 
6,735

Expected return on plan assets
 
(10,413
)
 
(8,886
)
Amortization of prior service cost
 
158

 
300

Amortization of unrecognized actuarial loss
 
1,483

 
4,272

Net periodic benefit cost
 
$
5,142

 
$
13,240



During the three months ended March 31, 2014, the Corporation made $7.8 million in contributions to the Curtiss-Wright Pension Plan, and expects to make total contributions of $40.0 million in 2014.  In addition, contributions of $0.7 million were made to the Corporation’s foreign benefit plans during the three months ended March 31, 2014.  Contributions to the foreign benefit plans are expected to be $3.4 million in 2014.

Other Postretirement Benefit Plans

The components of the Corporation's net postretirement benefit cost for the three months ended March 31, 2014 and 2013 are as follows:
 
 
Three Months Ended
 
 
March 31,
(In thousands)
 
2014
 
2013
Service cost
 
$
71

 
$
100

Interest cost
 
219

 
208

Amortization of prior service cost
 
(164
)
 
(157
)
Amortization of unrecognized actuarial gain
 
(203
)
 
(160
)
Net postretirement benefit cost (income)
 
$
(77
)
 
$
(9
)


During the three months ended March 31, 2014, the Corporation paid $0.4 million to the postretirement plans. During 2014, the Corporation anticipates contributing $1.7 million to the postretirement plans.

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 three months ended March 31, 2014, the expense relating to the plan was $3.9 million.  The Corporation made $1.6 million in contributions to the plan for the first quarter, and expects to make total contributions of $7.0 million in 2014.
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:
 
 
(In thousands)
 
 
Three Months Ended
 
 
March 31,
 
 
2014
 
2013
Basic weighted-average shares outstanding
 
47,982

 
46,615

Dilutive effect of stock options and deferred stock compensation
 
1,148

 
868

Diluted weighted-average shares outstanding
 
49,130

 
47,483



As of March 31, 2014, there were no stock options outstanding that were considered anti-dilutive. As of March 31, 2013, there were 622,000 stock options outstanding that could potentially dilute earnings per share in the future, which were excluded from the computation of diluted earnings per share, as they would be considered anti-dilutive.
SEGMENT INFORMATION
SEGMENT INFORMATION
SEGMENT INFORMATION

Prior to the first quarter of 2014, the Corporation reported its results of operations through three segments: Flow Control, Controls, and Surface Technologies. Beginning in the first quarter of 2014, the Corporation realigned its reportable segments with its end markets to strengthen its ability to service customers and recognize certain organizational efficiencies. As result of this realignment the Corporation has three new reportable segments: Commercial/Industrial, Defense, and Energy. The Corporation's former Surface Technologies segment is consolidated within the new Commercial/Industrial segment. The commercial businesses which were in the former Controls segment form part of the new Commercial/Industrial segment. The Corporation's defense businesses, which were primarily in the Corporation’s former Controls segment and to a lesser extent in the former Flow Control segment, are now consolidated within the new Defense segment. The Corporation's Oil and Gas and Nuclear divisions, which were in the former Flow Control segment, form the new Energy segment.
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 was as follows:
 
 
(In thousands)
 
 
Three Months Ended
 
 
March 31,
 
 
2014
 
2013
Net sales
 
 
 
 
Commercial/Industrial
 
$
266,925

 
$
220,966

Defense
 
202,523

 
211,745

Energy
 
173,844

 
167,742

Less: Intersegment revenues
 
(1,880
)
 
(7,766
)
Total consolidated
 
$
641,412

 
$
592,687

 
 
 
 
 
Operating income (expense)
 
 
 
 
Commercial/Industrial
 
$
32,960

 
$
20,651

Defense
 
21,174

 
16,877

Energy
 
12,552

 
10,796

Corporate and eliminations (1)
 
(7,585
)
 
(10,298
)
Total consolidated
 
$
59,101

 
$
38,026


(1) Corporate and eliminations includes pension and other postretirement benefit expense, certain environmental costs related to remediation at legacy sites, foreign currency transactional gains and losses, and certain other expenses.

Adjustments to reconcile operating income to earnings before income taxes:

 
 
(In thousands)
 
 
Three Months Ended
 
 
March 31,
 
 
2014
 
2013
Total operating income
 
$
59,101

 
$
38,026

Interest expense
 
(9,054
)
 
(8,659
)
Other income, net
 
65

 
474

Earnings before income taxes
 
$
50,112

 
$
29,841



 
(In thousands)
 
March 31, 2014
 
December 31, 2013
Identifiable assets
 
 
 
Commercial/Industrial
$
1,360,283

 
$
1,310,521

Defense
1,220,473

 
1,292,462

Energy
813,985

 
798,028

Corporate and Other
63,894

 
57,263

Total consolidated
$
3,458,635

 
$
3,458,274

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 (loss), 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, 2012
$
65,722

 
$
(121,230
)
 
$
(55,508
)
Current period other comprehensive income (loss)
(6,619
)
 
87,386

 
80,767

December 31, 2013
$
59,103

 
$
(33,844
)
 
$
25,259

Other comprehensive loss before reclassifications (1)
(9,917
)
 
(29
)
 
(9,946
)
Amounts reclassified from accumulated other comprehensive loss (1)
—

 
815

 
815

Net current period other comprehensive income (loss)
(9,917
)
 
786

 
(9,131
)
March 31, 2014
$
49,186

 
$
(33,058
)
 
$
16,128



(1)
All amounts are after tax.

Details of amounts reclassified from accumulated other comprehensive income (loss) are below: 
 
(In thousands)
 
 
 
Amount reclassified from Accumulated other comprehensive income (loss)
 
Affected line item in the statement where net earnings is presented
Defined benefit pension and other postretirement benefit plans
 
 
 
Amortization of prior service costs
6

 
(1)
Amortization of actuarial losses
(1,280
)
 
(1)
 
(1,274
)
 
Total before tax
 
459

 
Income tax
Total reclassifications
$
(815
)
 
Net of tax


(1)
These items are included in the computation of net periodic pension cost.  See Note 8, 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.

Environmental Matters

The Corporation's aggregate environmental liability was $16.2 million at March 31, 2014 and $16.3 million at December 31, 2013.  All environmental reserves exclude any potential recovery from insurance carriers or third-party legal actions.

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 March 31, 2014 and December 31, 2013, there were $41.1 million and $47.2 million of stand-by letters of credit outstanding, respectively, and $20.3 million and $23.2 million of bank guarantees outstanding, respectively.   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 Defense 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.  The Corporation would be liable for liquidated damages under the contract if certain contractual delivery dates were not met and if the Corporation was deemed responsible for the delay. As of March 31, 2014, the Corporation has not met certain contractual delivery dates under its AP 1000 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 March 31, 2014.  The range of possible loss is $0 to $25 million.
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 systems and provides highly engineered products and services to the commercial/industrial, defense, and energy markets.

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 in conformity with accounting principles generally accepted in the United States of America, which requires management 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. In the three month periods ended March 31, 2014 and 2013, there were no 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 2013 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.
Reclassification, Policy [Policy Text Block] 
Changes in Segment Presentation

As a result of certain organizational changes in 2014, the Corporation revised its reportable segments to align to the major markets it currently serves: Commercial/Industrial, Defense, and Energy. Prior period financial information has been reclassified to conform to the current period presentation. The change in reportable segments did not impact the Corporation's previously reported Condensed Consolidated Financial Statements. See Note 10 of the Notes to the Condensed Consolidated Financial Statements for more information on the Corporation's reportable segments.

Corrections to Prior Years Amounts

The presentation of net sales and cost of sales in the prior year's statement of earnings has been corrected to separately present the components of product and service revenues and costs of sales. This change in presentation did not affect total revenues, total cost of sales, total gross profit, operating income, or net earnings.
ACQUISITION (Table)
Schedule Of Business Acquisitions By Acquisition 
The purchase price of the acquisition has been allocated to the net tangible and intangible assets acquired with the remainder recorded as goodwill on the basis of estimated fair values, as follows:
(In thousands)
CCRS

Accounts receivable
$
2,984

Inventory
64

Property, plant, and equipment
1,987

Other current and non-current assets
71

Intangible assets
9,560

Current and non-current liabilities
(1,754
)
Due from Seller
248

Deferred income taxes
(2,058
)
Net tangible and intangible assets
11,102

Purchase price
24,892

Goodwill
$
13,790

 
 
Amount of tax deductible goodwill
$
—

Business Acquisition Pro Forma Information 
he following table presents unaudited consolidated pro forma financial information for the combined results of the Corporation and its completed business acquisitions during the year ended December 31, 2013 as if the acquisitions had occurred on January 1, 2013 for purposes of the financial information presented for the period ended March 31, 2013.
 
 
Three Months Ended
 
 
March 31,
(In thousands, except per share data)
 
2013
Net sales
 
$
621,219

Net earnings
 
22,054

Diluted earnings per share
 
0.46

RECEIVABLES (Table)
Schedule Of Accounts Notes Loans And Financing Receivable
The composition of receivables is as follows:
 
(In thousands)
 
March 31, 2014
 
December 31, 2013
Billed receivables:
 
 
 
Trade and other receivables
$
453,190

 
$
444,841

Less: Allowance for doubtful accounts
(6,390
)
 
(6,857
)
Net billed receivables
446,800

 
437,984

Unbilled receivables:
 
 
 
Recoverable costs and estimated earnings not billed
187,801

 
184,120

Less: Progress payments applied
(16,183
)
 
(18,512
)
Net unbilled receivables
171,618

 
165,608

Receivables, net
$
618,418

 
$
603,592

INVENTORIES (Table)
Schedule Of Inventory
The composition of inventories is as follows:
 
(In thousands)
 
March 31, 2014
 
December 31, 2013
Raw materials
$
245,619

 
$
231,219

Work-in-process
113,974

 
114,372

Finished goods and component parts
123,650

 
117,444

Inventoried costs related to long-term contracts
51,490

 
58,796

Gross inventories
534,733

 
521,831

Less:  Inventory reserves
(54,129
)
 
(54,400
)
Progress payments applied
(12,896
)
 
(15,344
)
Inventories, net
$
467,708

 
$
452,087

GOODWILL (Table)
Schedule Of Goodwill
The changes in the carrying amount of goodwill for the three months ended March 31, 2014 are as follows:
 
(In thousands)
 
Commercial/ Industrial
 
Defense
 
Energy
 
Consolidated
December 31, 2013
$
347,819

 
$
485,431

 
$
277,179

 
$
1,110,429

Acquisitions
13,790

 
—

 
3,640

 
17,430

Goodwill adjustments
—

 
(254
)
 
—

 
(254
)
Foreign currency translation adjustment
453

 
(2,092
)
 
(361
)
 
(2,000
)
March 31, 2014
$
362,062

 
$
483,085

 
$
280,458

 
$
1,125,605



During the first quarter of 2014, the Corporation performed a goodwill impairment assessment as a result of the change in its reportable segments. The Corporation tests for goodwill impairment at the reporting unit level, which is one level below the operating segment. The Corporation allocated goodwill to each reporting unit based on its relative fair value and then compared the fair value of the reporting units to the reporting units carrying amount and determined that goodwill was not impaired since the fair values of each of the reporting units substantially exceeded their carrying amounts, with the exception of the Oil and Gas reporting unit, in the Energy segment. Based on the results of our impairment analysis, the Corporation does not believe that an impairment exists. For further discussion on the Corporation’s interim impairment analysis please refer to our Critical Accounting Policy section in Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
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:
 
 
(In thousands)
March 31, 2014
 
Gross
 
Accumulated Amortization
 
Net
Technology
 
$
213,202

 
$
(91,628
)
 
$
121,574

Customer related intangibles
 
452,118

 
(134,244
)
 
317,874

Other intangible assets
 
56,988

 
(25,469
)
 
31,519

Total
 
$
722,308

 
$
(251,341
)
 
$
470,967

 
 
 
 
 
 
 
 
 
(In thousands)
December 31, 2013
 
Gross
 
Accumulated Amortization
 
Net
Technology
 
$
213,888

 
$
(88,644
)
 
$
125,244

Customer related intangibles
 
430,604

 
(127,194
)
 
303,410

Other intangible assets
 
66,436

 
(23,711
)
 
42,725

Total
 
$
710,928

 
$
(239,549
)
 
$
471,379

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)
 
March 31, 2014
 
December 31, 2013
Assets
 
 
 
Undesignated for hedge accounting
 
 
 
Forward exchange contracts
$
67

 
$
605

Total asset derivatives (A)
$
67

 
$
605

Liabilities
 
 
 
Designated for hedge accounting
 
 
 
Interest rate swaps
$
37,070

 
$
49,845

Undesignated for hedge accounting
 
 
 
Forward exchange contracts
$
193

 
$
277

Total liability derivatives (B)
$
37,263

 
$
50,122



(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.
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 months ended March 31, were as follows:
 
 
Gain/(Loss) on Swap
 
Gain/(Loss) on Borrowings
 
 
Three Months Ended
 
Three Months Ended
(In thousands)
 
March 31,
 
March 31,
Income Statement Classification
 
2014
 
2013
 
2014
 
2013
Other income, net
 
$
12,775

 
$
(10,950
)
 
$
(12,775
)
 
$
10,950



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 months ended March 31, were as follows:
 
 
Three Months Ended
(In thousands)
 
March 31,
Derivatives not designated as hedging instrument
 
2014
 
2013
Forward exchange contracts:
 
 
 
 
General and administrative expenses
 
$
(2,950
)
 
$
(1,561
)
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block] 
 
(In thousands)
 
March 31, 2014
 
December 31, 2013
 
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 2017
50,000

 
50,000

 
50,000

 
50,000

5.51% Senior notes due 2017
150,000

 
163,324

 
150,000

 
163,059

3.84% Senior notes due 2021
99,027

 
99,027

 
98,632

 
98,632

3.70% Senior notes due 2023
225,000

 
216,947

 
225,000

 
209,140

3.85% Senior notes due 2025
91,564

 
91,564

 
88,555

 
88,555

4.24% Senior notes due 2026
180,096

 
180,096

 
173,557

 
173,557

4.05% Senior notes due 2028
67,243

 
67,243

 
64,411

 
64,411

4.11% Senior notes due 2028
100,000

 
92,569

 
100,000

 
89,252

Other debt
705

 
705

 
1,383

 
1,383

Total debt
$
972,035

 
$
969,875

 
$
959,938

 
$
946,389

PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Table)
Schedule Of Defined Benefit Plans Disclosures
The components of net periodic pension cost for the three months ended March 31, 2014 and 2013 are as follows:

 
 
(In thousands)
 
 
Three Months Ended
 
 
March 31,
 
 
2014
 
2013
Service cost
 
$
6,370

 
$
10,819

Interest cost
 
7,544

 
6,735

Expected return on plan assets
 
(10,413
)
 
(8,886
)
Amortization of prior service cost
 
158

 
300

Amortization of unrecognized actuarial loss
 
1,483

 
4,272

Net periodic benefit cost
 
$
5,142

 
$
13,240

The components of the Corporation's net postretirement benefit cost for the three months ended March 31, 2014 and 2013 are as follows:
 
 
Three Months Ended
 
 
March 31,
(In thousands)
 
2014
 
2013
Service cost
 
$
71

 
$
100

Interest cost
 
219

 
208

Amortization of prior service cost
 
(164
)
 
(157
)
Amortization of unrecognized actuarial gain
 
(203
)
 
(160
)
Net postretirement benefit cost (income)
 
$
(77
)
 
$
(9
)


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:
 
 
(In thousands)
 
 
Three Months Ended
 
 
March 31,
 
 
2014
 
2013
Basic weighted-average shares outstanding
 
47,982

 
46,615

Dilutive effect of stock options and deferred stock compensation
 
1,148

 
868

Diluted weighted-average shares outstanding
 
49,130

 
47,483

SEGMENT INFORMATION (Table)
Schedule Of Segment Reporting Information By Segment 
 
 
(In thousands)
 
 
Three Months Ended
 
 
March 31,
 
 
2014
 
2013
Net sales
 
 
 
 
Commercial/Industrial
 
$
266,925

 
$
220,966

Defense
 
202,523

 
211,745

Energy
 
173,844

 
167,742

Less: Intersegment revenues
 
(1,880
)
 
(7,766
)
Total consolidated
 
$
641,412

 
$
592,687

 
 
 
 
 
Operating income (expense)
 
 
 
 
Commercial/Industrial
 
$
32,960

 
$
20,651

Defense
 
21,174

 
16,877

Energy
 
12,552

 
10,796

Corporate and eliminations (1)
 
(7,585
)
 
(10,298
)
Total consolidated
 
$
59,101

 
$
38,026


(1) Corporate and eliminations includes pension and other postretirement benefit expense, certain environmental costs related to remediation at legacy sites, foreign currency transactional gains and losses, and certain other expenses.
Reconciliation of Operating Profit (Loss) from Segments to Consolidated 

 
 
(In thousands)
 
 
Three Months Ended
 
 
March 31,
 
 
2014
 
2013
Total operating income
 
$
59,101

 
$
38,026

Interest expense
 
(9,054
)
 
(8,659
)
Other income, net
 
65

 
474

Earnings before income taxes
 
$
50,112

 
$
29,841

Reconciliation Of Assets From Segment To Consolidated 
 
(In thousands)
 
March 31, 2014
 
December 31, 2013
Identifiable assets
 
 
 
Commercial/Industrial
$
1,360,283

 
$
1,310,521

Defense
1,220,473

 
1,292,462

Energy
813,985

 
798,028

Corporate and Other
63,894

 
57,263

Total consolidated
$
3,458,635

 
$
3,458,274

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Table)
Schedule of Comprehensive Income (Loss) 
The cumulative balance of each component of accumulated other comprehensive income (loss), 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, 2012
$
65,722

 
$
(121,230
)
 
$
(55,508
)
Current period other comprehensive income (loss)
(6,619
)
 
87,386

 
80,767

December 31, 2013
$
59,103

 
$
(33,844
)
 
$
25,259

Other comprehensive loss before reclassifications (1)
(9,917
)
 
(29
)
 
(9,946
)
Amounts reclassified from accumulated other comprehensive loss (1)
—

 
815

 
815

Net current period other comprehensive income (loss)
(9,917
)
 
786

 
(9,131
)
March 31, 2014
$
49,186

 
$
(33,058
)
 
$
16,128



(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 Accumulated other comprehensive income (loss)
 
Affected line item in the statement where net earnings is presented
Defined benefit pension and other postretirement benefit plans
 
 
 
Amortization of prior service costs
6

 
(1)
Amortization of actuarial losses
(1,280
)
 
(1)
 
(1,274
)
 
Total before tax
 
459

 
Income tax
Total reclassifications
$
(815
)
 
Net of tax


(1)
These items are included in the computation of net periodic pension cost.  See Note 8, Pension and Other Postretirement Benefit Plans.
ACQUISITION (Narrative) (Detail)
3 Months Ended 0 Months Ended 3 Months Ended 12 Months Ended 0 Months Ended 3 Months Ended 12 Months Ended
Mar. 31, 2014
USD ($)
NumberAcquisitions
Jan. 10, 2014
Component Coating and Repair Services [Member]
Commercial Industrial [Member]
USD ($)
Jan. 10, 2014
Component Coating and Repair Services [Member]
Commercial Industrial [Member]
GBP (£)
Mar. 31, 2014
Component Coating and Repair Services [Member]
Commercial Industrial [Member]
May 31, 2013
Component Coating and Repair Services [Member]
Commercial Industrial [Member]
GBP (£)
Feb. 18, 2014
NPSI [Member]
Energy [Member]
USD ($)
Feb. 18, 2014
NPSI [Member]
Energy [Member]
CAD ($)
Mar. 31, 2014
NPSI [Member]
Energy [Member]
Dec. 31, 2013
NPSI [Member]
Energy [Member]
CAD ($)
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
Number of Businesses Acquired
2 
 
 
 
 
 
 
 
 
Effective date of acquisition
 
 
 
Jan. 10, 2014 
 
 
 
Feb. 18, 2014 
 
Business Acquisition, Percentage of Voting Interests Acquired
 
100.00% 
100.00% 
 
 
 
 
 
 
Purchase price net of cash acquired
 
$ 24,892,000 
£ 15,000,000 
 
 
$ 8,000,000 
$ 9,000,000 
 
 
Revenue reported by acquiree in last reporting period
 
 
 
 
6,400,000 
 
 
 
5,000,000 
Actual pro forma Revenue by acquiree
2,700,000 
 
 
 
 
 
 
 
 
Actual pro forma earnings of aquiree
$ (300,000)
 
 
 
 
 
 
 
 
ACQUISITION (Detail)
In Thousands, unless otherwise specified
0 Months Ended
Mar. 31, 2014
USD ($)
Dec. 31, 2013
USD ($)
Mar. 31, 2014
Commercial Industrial [Member]
USD ($)
Dec. 31, 2013
Commercial Industrial [Member]
USD ($)
Jan. 10, 2014
Component Coating and Repair Services [Member]
Commercial Industrial [Member]
USD ($)
Jan. 10, 2014
Component Coating and Repair Services [Member]
Commercial Industrial [Member]
GBP (£)
Business Acquisition [Line Items]
 
 
 
 
 
 
Accounts receivable
 
 
 
 
$ 2,984 
 
Inventory
 
 
 
 
64 
 
Property, plant, and equipment
 
 
 
 
1,987 
 
Other current and non-current assets
 
 
 
 
71 
 
Intangible assets
 
 
 
 
9,560 
 
Current and non-current liabilities
 
 
 
 
(1,754)
 
Due from Seller
 
 
 
 
248 
 
Deferred income taxes
 
 
 
 
(2,058)
 
Net tangible and intangible assets
 
 
 
 
11,102 
 
Purchase price
 
 
 
 
24,892 
15,000 
Goodwill
1,125,605 
1,110,429 
362,062 
347,819 
13,790 
 
Amount of tax deductible goodwill
 
 
 
 
$ 0 
 
ACQUISITION (Proforma) (Detail) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Business Combinations [Abstract]
 
Net sales
$ 621,219 
Net earnings
$ 22,054 
Diluted earnings per share from continuing operations (in usd per share)
$ 0.46 
ACQUISITION (Proforma Narrative) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Business Acquisition [Line Items]
 
Additional amortization of intangible assets
$ 1.6 
Additional interest expense
$ 1.8 
RECEIVABLES (Detail) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2014
Dec. 31, 2013
Billed receivables:
 
 
Trade and other receivables
$ 453,190 
$ 444,841 
Less: Allowance for doubtful accounts
(6,390)
(6,857)
Net billed receivables
446,800 
437,984 
Unbilled receivables:
 
 
Recoverable costs and estimated earnings not billed
187,801 
184,120 
Less: Progress payments applied
(16,183)
(18,512)
Net unbilled receivables
171,618 
165,608 
Receivables, net
$ 618,418 
$ 603,592 
INVENTORIES (Detail) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2014
Dec. 31, 2013
Inventory, Net [Abstract]
 
 
Raw material
$ 245,619 
$ 231,219 
Work-in-process
113,974 
114,372 
Finished goods and component parts
123,650 
117,444 
Inventoried costs related to long-term contracts
51,490 
58,796 
Gross inventories
534,733 
521,831 
Less: Inventory reserves
(54,129)
(54,400)
Progress payments applied
(12,896)
(15,344)
Inventories, net
$ 467,708 
$ 452,087 
INVENTORIES (Narrative) (Detail) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2014
Dec. 31, 2013
Inventory, Net [Abstract]
 
 
Other inventory, capitalized costs
$ 37.3 
$ 37.1 
Other inventory, capitalized costs to be liquidated under firm orders
$ 9.8 
$ 13.8 
GOODWILL (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Goodwill [Roll Forward]
 
December 31, 2013
$ 1,110,429 
Acquisitions
17,430 
Goodwill adjustments
(254)
Foreign currency translation adjustment
(2,000)
March 31, 2014
1,125,605 
Commercial Industrial [Member]
 
Goodwill [Roll Forward]
 
December 31, 2013
347,819 
Acquisitions
13,790 
Goodwill adjustments
0 
Foreign currency translation adjustment
453 
March 31, 2014
362,062 
Defense [Member]
 
Goodwill [Roll Forward]
 
December 31, 2013
485,431 
Acquisitions
0 
Goodwill adjustments
(254)
Foreign currency translation adjustment
(2,092)
March 31, 2014
483,085 
Energy [Member]
 
Goodwill [Roll Forward]
 
December 31, 2013
277,179 
Acquisitions
3,640 
Goodwill adjustments
0 
Foreign currency translation adjustment
(361)
March 31, 2014
$ 280,458 
OTHER INTANGIBLE ASSETS, NET (Detail) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2014
Dec. 31, 2013
Finite Lived Intangible Assets [Line Items]
 
 
Gross
$ 722,308 
$ 710,928 
Accumulated Amortization
(251,341)
(239,549)
Net
470,967 
471,379 
Technology [Member]
 
 
Finite Lived Intangible Assets [Line Items]
 
 
Gross
213,202 
213,888 
Accumulated Amortization
(91,628)
(88,644)
Net
121,574 
125,244 
Customer Related Intangibles [Member]
 
 
Finite Lived Intangible Assets [Line Items]
 
 
Gross
452,118 
430,604 
Accumulated Amortization
(134,244)
(127,194)
Net
317,874 
303,410 
Other Intangible Assets [Member]
 
 
Finite Lived Intangible Assets [Line Items]
 
 
Gross
56,988 
66,436 
Accumulated Amortization
(25,469)
(23,711)
Net
$ 31,519 
$ 42,725 
OTHER INTANGIBLE ASSETS, NET (Narrative) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Finite Lived Intangible Assets [Line Items]
 
 
Acquired intangible assets
$ 13.0 
 
Amortization expense
12.7 
12.4 
Future amortization expense in remainder of fiscal year
48.5 
 
Future amortization expense in year two
45.4 
 
Future amortization expense in year three
44.1 
 
Future amortization expense in year four
43.5 
 
Future amortization expense in year five
41.9 
 
Customer-Related Intangible Assets [Member]
 
 
Finite Lived Intangible Assets [Line Items]
 
 
Acquired intangible assets
12.8 
 
Weighted average useful life
13 years 6 months 
 
Other Intangible Assets [Member]
 
 
Finite Lived Intangible Assets [Line Items]
 
 
Acquired intangible assets
$ 0.2 
 
Weighted average useful life
1 year 
 
FAIR VALUE OF FINANCIAL INSTRUMENTS (Interest Rate Swap) (Details) (Interest Rate Swap [Member], USD $)
In Millions, unless otherwise specified
Mar. 31, 2014
Interest Rate Swap [Member]
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
Notional amount
$ 400 
FAIR VALUE OF FINANCIAL INSTRUMENTS (Balance Sheet) (Detail) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2014
Dec. 31, 2013
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Assets
$ 67 1
$ 605 1
Liabilities
37,263 2
50,122 2
Designated as Hedging Instrument [Member] |
Interest Rate Swap [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Liabilities
37,070 
49,845 
Not Designated as Hedging Instrument [Member] |
Foreign Exchange Forward [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Assets
67 
605 
Liabilities
$ 193 
$ 277 
FAIR VALUE OF FINANCIAL INSTRUMENTS (Income Loss) (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
General And Administrative Expense [Member]
 
 
Derivative Instruments Gain Loss [Line Items]
 
 
General and administrative expenses
$ (2,950)
$ (1,561)
Swap [Member] |
Other Income [Member]
 
 
Derivative Instruments Gain Loss [Line Items]
 
 
Other income, net
12,775 
(10,950)
Borrowings [Member] |
Other Income [Member]
 
 
Derivative Instruments Gain Loss [Line Items]
 
 
Other income, net
$ (12,775)
$ 10,950 
FAIR VALUE OF FINANCIAL INSTRUMENTS (Debt) (Detail) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2014
Dec. 31, 2013
5.51% Senior notes due 2017 [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Interest rate
5.51% 
 
3.84% Senior notes due 2021 [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Interest rate
3.84% 
 
3.70% Senior notes due 2023 [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Interest rate
3.70% 
 
3.85% Senior notes due 2025 [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Interest rate
3.85% 
 
4.24% Senior notes due 2026 [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Interest rate
4.24% 
 
4.05% Senior notes due 2028 [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Interest rate
4.05% 
 
4.11% Senior Notes [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Interest rate
4.11% 
 
Reported Value Measurement [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Carrying Value
$ 972,035 
$ 959,938 
Reported Value Measurement [Member] |
Industrial revenue bond, due 2023 [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Carrying Value
8,400 
8,400 
Reported Value Measurement [Member] |
Revolving credit agreement, due 2017 [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Carrying Value
50,000 
50,000 
Reported Value Measurement [Member] |
5.51% Senior notes due 2017 [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Carrying Value
150,000 
150,000 
Reported Value Measurement [Member] |
3.84% Senior notes due 2021 [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Carrying Value
99,027 
98,632 
Reported Value Measurement [Member] |
3.70% Senior notes due 2023 [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Carrying Value
225,000 
225,000 
Reported Value Measurement [Member] |
3.85% Senior notes due 2025 [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Carrying Value
91,564 
88,555 
Reported Value Measurement [Member] |
4.24% Senior notes due 2026 [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Carrying Value
180,096 
173,557 
Reported Value Measurement [Member] |
4.05% Senior notes due 2028 [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Carrying Value
67,243 
64,411 
Reported Value Measurement [Member] |
4.11% Senior Notes [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Carrying Value
100,000 
100,000 
Reported Value Measurement [Member] |
Other debt [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Carrying Value
705 
1,383 
Estimate of Fair Value Measurement [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Estimated Fair Value
969,875 
946,389 
Estimate of Fair Value Measurement [Member] |
Industrial revenue bond, due 2023 [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Estimated Fair Value
8,400 
8,400 
Estimate of Fair Value Measurement [Member] |
Revolving credit agreement, due 2017 [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Estimated Fair Value
50,000 
50,000 
Estimate of Fair Value Measurement [Member] |
5.51% Senior notes due 2017 [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Estimated Fair Value
163,324 
163,059 
Estimate of Fair Value Measurement [Member] |
3.84% Senior notes due 2021 [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Estimated Fair Value
99,027 
98,632 
Estimate of Fair Value Measurement [Member] |
3.70% Senior notes due 2023 [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Estimated Fair Value
216,947 
209,140 
Estimate of Fair Value Measurement [Member] |
3.85% Senior notes due 2025 [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Estimated Fair Value
91,564 
88,555 
Estimate of Fair Value Measurement [Member] |
4.24% Senior notes due 2026 [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Estimated Fair Value
180,096 
173,557 
Estimate of Fair Value Measurement [Member] |
4.05% Senior notes due 2028 [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Estimated Fair Value
67,243 
64,411 
Estimate of Fair Value Measurement [Member] |
4.11% Senior Notes [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Estimated Fair Value
92,569 
89,252 
Estimate of Fair Value Measurement [Member] |
Other debt [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Estimated Fair Value
$ 705 
$ 1,383 
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Pension Plans Defined Benefit [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Service cost
$ 6,370 
$ 10,819 
Interest cost
7,544 
6,735 
Expected return on plan assets
(10,413)
(8,886)
Amortization of prior service cost
158 
300 
Amortization of unrecognized actuarial loss
1,483 
4,272 
Net postretirement benefit cost (income)
5,142 
13,240 
Other Postretirement Benefit Plan, Defined Benefit [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Service cost
71 
100 
Interest cost
219 
208 
Amortization of prior service cost
(164)
(157)
Amortization of unrecognized actuarial loss
(203)
(160)
Net postretirement benefit cost (income)
$ (77)
$ (9)
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Additional) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Defined Benefit Plan Disclosure [Line Items]
 
Defined contribution plan, employer contribution, maximum percentage
6.00% 
Defined contribution plan, expense relating to the plan
$ 3.9 
Contributions made by the corporation to the plan
1.6 
Estimated future contributions for the current fiscal year
7.0 
Domestic Defined Benefit Plan [Member]
 
Defined Benefit Plan Disclosure [Line Items]
 
Contributions by employer
7.8 
Future employer contributions
40.0 
Foreign Defined Benefit [Member]
 
Defined Benefit Plan Disclosure [Line Items]
 
Contributions by employer
0.7 
Future employer contributions
3.4 
Other Postretirement Benefit Plan, Defined Benefit [Member]
 
Defined Benefit Plan Disclosure [Line Items]
 
Contributions by employer
0.4 
Future employer contributions
$ 1.7 
EARNINGS PER SHARE (Detail)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Earnings Per Share Reconciliation [Abstract]
 
 
Basic weighted-average shares outstanding (shares)
47,982 
46,615 
Dilutive effect of stock options and deferred stock compensation (shares)
1,148 
868 
Diluted weighted-average shares outstanding (shares)
49,130 
47,483 
EARNINGS PER SHARE (AntiDilutive) (Detail)
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Earnings Per Share [Abstract]
 
 
Antidilutive securities excluded from computation of earnings per share, amount
0 
622,000 
SEGMENT INFORMATION (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
segment
Mar. 31, 2013
Dec. 31, 2013
Segment Reporting Information [Line Items]
 
 
 
Number of operating segments
3 
 
 
Net sales
$ 641,412 
$ 592,687 
 
Operating income (expense)
59,101 
38,026 
 
Identifiable assets
3,458,635 
 
3,458,274 
Commercial Industrial [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Net sales
266,925 
220,966 
 
Operating income (expense)
32,960 
20,651 
 
Identifiable assets
1,360,283 
 
1,310,521 
Defense [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Net sales
202,523 
211,745 
 
Operating income (expense)
21,174 
16,877 
 
Identifiable assets
1,220,473 
 
1,292,462 
Energy [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Net sales
173,844 
167,742 
 
Operating income (expense)
12,552 
10,796 
 
Identifiable assets
813,985 
 
798,028 
Intersegment Eliminations [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Net sales
(1,880)
(7,766)
 
Corporate and Eliminations [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Operating income (expense)
(7,585)1
(10,298)1
 
Corporate and Other [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Identifiable assets
$ 63,894 
 
$ 57,263 
SEGMENT INFORMATION (Reconciliation) (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Segment Reporting [Abstract]
 
 
Total operating income
$ 59,101 
$ 38,026 
Interest expense
(9,054)
(8,659)
Other income, net
65 
474 
Earnings before income taxes
$ 50,112 
$ 29,841 
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Dec. 31, 2013
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
 
 
Beginning balance
$ 25,259 
$ (55,508)
$ (55,508)
Other comprehensive income (loss) before reclassifications
(9,946)1
 
 
Amounts reclassified from accumulated other comprehensive loss
815 1
 
 
Other comprehensive income (loss), net of tax
(9,131)
(29,019)
80,767 
Ending balance
16,128 
 
25,259 
Foreign Currency Translation Adjustments, Net [Member]
 
 
 
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
 
 
Beginning balance
59,103 
65,722 
65,722 
Other comprehensive income (loss) before reclassifications
(9,917)1
 
 
Amounts reclassified from accumulated other comprehensive loss
0 1
 
 
Other comprehensive income (loss), net of tax
(9,917)
 
(6,619)
Ending balance
49,186 
 
59,103 
Total Pension and Postretirment Adjustments, Net [Member]
 
 
 
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
 
 
Beginning balance
(33,844)
(121,230)
(121,230)
Other comprehensive income (loss) before reclassifications
(29)1
 
 
Amounts reclassified from accumulated other comprehensive loss
815 1
 
 
Other comprehensive income (loss), net of tax
786 
 
87,386 
Ending balance
$ (33,058)
 
$ (33,844)
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Reclass) (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
Earnings before income taxes
$ 50,112 
$ 29,841 
Income tax
(14,948)
(8,898)
Net earnings
35,164 
20,943 
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
6 1
 
Amortization of actuarial losses
(1,280)1
 
Earnings before income taxes
(1,274)
 
Income tax
459 
 
Net earnings
$ (815)
 
CONTINGENCIES AND COMMITMENTS (Detail) (USD $)
3 Months Ended 0 Months Ended
Mar. 31, 2014
Mar. 31, 2014
Scenario, Forecast [Member]
Oct. 10, 2013
Failure to Meet Contractual Obligations [Member]
Mar. 31, 2014
Environmental Matters [Member]
Dec. 31, 2013
Environmental Matters [Member]
Mar. 31, 2014
Standby Letters Of Credit [Member]
Dec. 31, 2013
Standby Letters Of Credit [Member]
Mar. 31, 2014
FinancialStandbyLetterOfCreditMember
Dec. 31, 2013
FinancialStandbyLetterOfCreditMember
Loss Contingencies [Line Items]
 
 
 
 
 
 
 
 
 
Accrual for environmental loss contingencies
 
 
 
$ 16,200,000 
$ 16,300,000 
 
 
 
 
Letters of credit, outstanding
 
 
 
 
 
41,100,000 
47,200,000 
20,300,000 
23,200,000 
Surety Bond Outstanding
52,900,000 
 
 
 
 
 
 
 
 
Damages sought
 
1,000,000,000 
25,000,000 
 
 
 
 
 
 
Range of possible loss, minimum
 
0 
 
 
 
 
 
 
 
Range of possible loss, maximum
 
$ 25,000,000