BARNES GROUP INC, 10-Q filed on 10/28/2016
Quarterly Report
Document and Entity Information
9 Months Ended
Sep. 30, 2016
Oct. 26, 2016
Document and Entity Information [Abstract]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Sep. 30, 2016 
 
Document Fiscal Year Focus
2016 
 
Document Fiscal Period Focus
Q3 
 
Entity Registrant Name
BARNES GROUP INC 
 
Entity Central Index Key
0000009984 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
53,814,441 
Consolidated Statements of Income (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Income Statement [Abstract]
 
 
 
 
Net sales
$ 311,561 
$ 291,434 
$ 906,586 
$ 906,949 
Cost of sales
198,600 
191,132 
582,028 
593,609 
Selling and administrative expenses
61,144 
56,555 
183,754 
175,049 
Total operating costs and expenses
259,744 
247,687 
765,782 
768,658 
Operating income
51,817 
43,747 
140,804 
138,291 
Interest expense
3,020 
2,637 
8,826 
7,944 
Other expense (income), net
621 
(545)
24 
(228)
Income before income taxes
48,176 
41,655 
131,954 
130,575 
Income taxes
11,348 
7,984 
33,066 
33,601 
Net income
$ 36,828 
$ 33,671 
$ 98,888 
$ 96,974 
Per common share:
 
 
 
 
Basic (in dollars per share)
$ 0.68 
$ 0.61 
$ 1.82 
$ 1.76 
Diluted (in dollars per share)
$ 0.67 
$ 0.61 
$ 1.81 
$ 1.74 
Dividends (in dollars per share)
$ 0.13 
$ 0.12 
$ 0.38 
$ 0.36 
Weighted average common shares outstanding:
 
 
 
 
Basic (in shares)
54,206,064 
55,199,315 
54,206,798 
55,140,774 
Diluted (in shares)
54,572,315 
55,588,092 
54,643,739 
55,647,971 
Consolidated Statements of Comprehensive Income (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Statement of Comprehensive Income [Abstract]
 
 
 
 
Net income
$ 36,828 
$ 33,671 
$ 98,888 
$ 96,974 
Other comprehensive income (loss), net of tax
 
 
 
 
Unrealized (loss) gain on hedging activities, net of tax (1)
(150)1
(174)1
(580)1
127 1
Foreign currency translation adjustments, net of tax (2)
990 2
(22,722)2
2,100 2
(38,847)2
Defined benefit pension and other postretirement benefits, net of tax (3)
2,042 3
3,592 3
5,740 3
9,043 3
Total other comprehensive income (loss), net of tax
2,882 
(19,304)
7,260 
(29,677)
Total comprehensive income
39,710 
14,367 
106,148 
67,297 
Unrealized (loss) gain on hedging activities, tax
1 
(96)
(141)
(64)
Foreign currency translation adjustment, tax
31 
(188)
105 
(1,569)
Defined benefit pension and other postretirement benefits, tax
$ 977 
$ 1,383 
$ 2,930 
$ 4,150 
Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Current assets
 
 
Cash and cash equivalents
$ 71,941 
$ 83,926 
Accounts receivable, less allowances (2016 - $4,343; 2015 - $4,085)
287,293 
261,757 
Inventories
233,409 
208,611 
Deferred income taxes
0 
24,825 
Prepaid expenses and other current assets
32,282 
32,469 
Total current assets
624,925 
611,588 
Deferred income taxes
19,375 
1,139 
Property, plant and equipment
775,424 
714,807 
Less accumulated depreciation
(432,954)
(405,951)
Property, plant and equipment, net
342,470 
308,856 
Goodwill
666,040 
587,992 
Other intangible assets, net
542,083 
528,322 
Other assets
26,990 
23,969 
Total assets
2,221,883 
2,061,866 
Current liabilities
 
 
Notes and overdrafts payable
13,200 
22,680 
Accounts payable
109,050 
97,035 
Accrued liabilities
146,357 
114,867 
Deferred revenue and customer advances
35,120 
16,453 
Long-term debt - current
2,211 
1,515 
Total current liabilities
305,938 
252,550 
Long-term debt
512,060 
485,711 
Accrued retirement benefits
99,749 
112,888 
Deferred income taxes
75,616 
62,364 
Other liabilities
24,898 
20,600 
Commitments and contingencies (Note 13)
   
   
Stockholders' equity
 
 
Common stock - par value $0.01 per share Authorized: 150,000,000 shares Issued: at par value (2016 - 62,579,299 shares; 2015 - 62,071,144 shares)
626 
621 
Additional paid-in capital
438,410 
427,558 
Treasury stock, at cost (2016 - 8,765,055 shares; 2015 - 8,206,683 shares)
(246,962)
(226,421)
Retained earnings
1,147,540 
1,069,247 
Accumulated other non-owner changes to equity
(135,992)
(143,252)
Total stockholders' equity
1,203,622 
1,127,753 
Total liabilities and stockholders' equity
$ 2,221,883 
$ 2,061,866 
Consolidated Balance Sheets (Parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Allowance for doubtful accounts
$ 4,343 
$ 4,085 
Common stock, par value (in dollars per share)
$ 0.01 
$ 0.01 
Common stock, shares authorized (in shares)
150,000,000 
150,000,000 
Common stock, shares issued (in shares)
62,579,299 
62,071,144 
Treasury stock, at cost (in shares)
8,765,055 
8,206,683 
Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Operating activities:
 
 
Net income
$ 98,888 
$ 96,974 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Depreciation and amortization
58,949 
59,249 
Gain on disposition of property, plant and equipment
(475)
(1,269)
Stock compensation expense
8,620 
6,934 
Changes in assets and liabilities, net of the effect of acquisitions:
 
 
Accounts receivable
(18,461)
2,221 
Inventories
4,626 
(3,593)
Prepaid expenses and other current assets
(296)
(7,617)
Accounts payable
9,799 
8,667 
Accrued liabilities, deferred revenue and customer advances
13,028 
(8,026)
Deferred income taxes
998 
4,741 
Long-term retirement benefits
(16,026)
(166)
Other
461 
2,481 
Net cash provided by operating activities
160,111 
160,596 
Investing activities:
 
 
Proceeds from disposition of property, plant and equipment
715 
3,311 
Capital expenditures
(32,920)
(31,412)
Business acquisitions, net of cash acquired
(120,675)
(43,485)
Component Repair Program payments
(900)
(19,000)
Net cash used by investing activities
(153,780)
(90,586)
Financing activities:
 
 
Net change in other borrowings
(9,321)
2,491 
Payments on long-term debt
(263,578)
(137,699)
Proceeds from the issuance of long-term debt
288,982 
107,766 
Proceeds from the issuance of common stock
2,463 
11,183 
Common stock repurchases
(15,660)
(12,082)
Dividends paid
(20,444)
(19,713)
Withholding taxes paid on stock issuances
(4,881)
(4,898)
Other
3,406 
6,341 
Net cash used by financing activities
(19,033)
(46,611)
Effect of exchange rate changes on cash flows
717 
(3,675)
(Decrease) increase in cash and cash equivalents
(11,985)
19,724 
Cash and cash equivalents at beginning of period
83,926 
46,039 
Cash and cash equivalents at end of period
71,941 
65,763 
Liabilities recognized in connection to acquisition
$ 12,436 
 
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies

The accompanying unaudited consolidated balance sheet and the related unaudited consolidated statements of income, comprehensive income and cash flows have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The consolidated financial statements do not include all information and notes required by accounting principles generally accepted in the United States of America for complete financial statements. The balance sheet as of December 31, 2015 has been derived from the 2015 financial statements of Barnes Group Inc. (the “Company”). For additional information, please refer to the consolidated financial statements and notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015. In the opinion of management, all adjustments, including normal recurring accruals considered necessary for a fair statement of the results, have been included. Operating results for the nine-month period ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. Certain reclassifications have been made to prior year amounts.
Acquisition
Acquisition
Acquisition

On August 31, 2016, the Company, through three of its subsidiaries (collectively, the “Purchaser”), completed substantially all of its acquisition of the molds business of Adval Tech Holding AG and Adval Tech Holdings (Asia) Pte. Ltd. ("FOBOHA") (collectively, the “Sellers”). FOBOHA is headquartered in Haslach, Germany and operates out of three manufacturing facilities located in Germany, Switzerland and China. The Company completed it's purchase of the Germany and Switzerland businesses on August 31, 2016. The purchase of the China business required government approval which was granted on September 30, 2016. On October 7, 2016, shares of the China operations were subsequently transferred to the Company upon payment, per the terms of the Sale and Purchase Agreement for these respective operations ("China SPA"). The Company, pursuant to the terms and conditions within the Sale and Purchase Agreement ("FOBOHA SPA"), assumed economic control of the China business effective August 31, 2016. Having both economic control and the benefits and risks of ownership during the period from August 31, 2016 through September 30, 2016, the Company included the results of the China business within the consolidated results of operations of the Company during this period.

FOBOHA specializes in the development and manufacture of complex plastic injection molds for packaging, medical, consumer and automotive applications. The Company acquired FOBOHA for an aggregate cash purchase price of CHF 140,762 ($143,094), which is subject to post closing adjustments under the terms of the FOBOHA SPA. The Company paid CHF 128,528 ($130,658) in cash, using cash on hand and borrowings under the Company's revolving credit facility and recorded a payable to the Sellers of CHF 9,334 ($9,489) for the China operations and a liability of CHF 2,900 ($2,947) related to the estimated post closing adjustments, both of which are included within accrued liabilities on the consolidated balance sheet as of September 30, 2016. The purchase price includes preliminary adjustments under the terms of the FOBOHA SPA, including approximately CHF 11,342 ($11,530) related to cash acquired. In connection with the acquisition, the Company recorded $37,600 of intangible assets and $73,753 of goodwill. See Note 5 to the Consolidated Financial Statements. Pro forma operating results for the FOBOHA acquisition are not presented as the results would not be significantly different than historical results.

During the nine months ended September 30, 2016, the Company incurred $2,118 of acquisition-related costs related to the FOBOHA acquisition. These costs include due diligence costs and transaction costs to complete the acquisition and have been recognized in the Consolidated Statements of Income as selling and administrative expenses.

The operating results of FOBOHA have been included in the Consolidated Statements of Income since the date of acquisition. The Company reported $4,032 in net sales for the period from the acquisition date through September 30, 2016. FOBOHA results have been included within the Industrial segment's operating profit.
Net Income Per Common Share
Net Income Per Common Share
Net Income Per Common Share

For the purpose of computing diluted net income per common share, the weighted-average number of common shares outstanding is increased for the potential dilutive effects of stock-based incentive plans. For the purpose of computing diluted net income per common share, the weighted-average number of common shares outstanding was increased by 366,251 and 388,777 for the three-month periods ended September 30, 2016 and 2015, respectively, and by 436,941 and 507,197 for the nine-month periods ended September 30, 2016 and 2015, respectively, to account for the potential dilutive effect of stock-based incentive plans. There were no adjustments to net income for the purposes of computing income available to common stockholders for the periods.

The calculation of weighted-average diluted shares outstanding excludes all shares that would have been anti-dilutive. During the three-month periods ended September 30, 2016 and 2015, the Company excluded 209,907 and 209,102 stock options, respectively, from the calculation of weighted-average diluted shares outstanding as the stock options would have been anti-dilutive. During the nine- month periods ended September 30, 2016 and 2015, the Company excluded 315,440 and 203,001 stock options, respectively, from the calculation of weighted-average diluted shares outstanding as the stock options would have been anti-dilutive. The Company also excluded 31,028 performance share awards from the calculation of weighted-average diluted shares outstanding during the nine- month period ended September 30, 2016 as such awards also would have been anti-dilutive. There were no performance share awards excluded from the calculation of weighted-average diluted shares outstanding during the three- month period ended September 30, 2016 as no awards would have been anti-dilutive.
  
The Company granted 142,000 stock options, 119,814 restricted stock unit awards and 108,400 performance share awards ("PSAs") in February 2016 as part of its annual grant awards. All of the stock options and the restricted stock unit awards vest upon meeting certain service conditions. The restricted stock unit awards are included in basic weighted-average common shares outstanding as they contain nonforfeitable rights to dividend payments. The performance share awards are part of the long-term Performance Share Award Program (the "Awards Program") and are based on performance goals that are driven by a combination of independently measured metrics (depending on the grant year) with each metric being weighted equally. The metrics for awards granted in 2015 include the Company’s total shareholder return (“TSR”), return on invested capital (“ROIC”) and operating income before depreciation and amortization growth. The metrics for the awards granted in 2016 include TSR and ROIC. The TSR and operating income before depreciation and amortization growth metrics are designed to assess the long-term Company performance relative to the performance of companies included in the Russell 2000 Index over a three-year performance period. The ROIC metric is measured based on pre-established Company targets over the same period. The participants can earn from zero to 250% of the target award and the award includes a forfeitable right to dividend equivalents, which are not included in the aggregate target award numbers. The fair value of the TSR portion of the PSA was determined using a Monte Carlo valuation method as the award contains a market condition.
Inventories
Inventories
Inventories

The components of inventories consisted of:
 
September 30, 2016
 
December 31, 2015
Finished goods
$
70,221


$
76,836

Work-in-process
105,495

 
77,061

Raw material and supplies
57,693

 
54,714

 
$
233,409


$
208,611

Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets

Goodwill:
The following table sets forth the change in the carrying amount of goodwill for each reportable segment and for the Company as of and for the period ended September 30, 2016:
 
Industrial
 
Aerospace
 
Total Company
January 1, 2016
$
557,206

 
$
30,786

 
$
587,992

Goodwill acquired
73,753

 
—

 
73,753

Foreign currency translation
4,295

 
—

 
4,295

September 30, 2016
$
635,254

 
$
30,786

 
$
666,040



The changes recorded at Industrial include $73,753 of goodwill resulting from the acquisition of FOBOHA in August 2016. The amount allocated to goodwill reflects the benefits that the Company expects to realize from synergies created by combining the operations of FOBOHA, future enhancements to technology, geographical expansion and FOBOHA's assembled workforce. None of the recognized goodwill is expected to be deductible for income tax purposes. The final purchase price is subject to post-closing adjustments and purchase price allocations are subject to the finalized valuation of certain assets and liabilities, therefore goodwill acquired may require adjustment accordingly.

In the second quarter of 2016, management performed its annual impairment testing of goodwill. Based on this assessment, there was no goodwill impairment recognized.

Other Intangible Assets:
Other intangible assets consisted of:
 
 
 
September 30, 2016
 
December 31, 2015
 
Range of
Life -Years
 
Gross Amount
 
Accumulated Amortization
 
Gross Amount
 
Accumulated Amortization
Amortized intangible assets:
 
 
 
 
 
 
 
 
 
Revenue sharing programs (RSPs)
Up to 30
 
$
293,700

 
$
(93,142
)
 
$
293,700

 
$
(84,629
)
Component repair programs (CRPs)
Up to 30
 
111,839

 
(9,243
)
 
111,839

 
(6,054
)
Customer lists/relationships
10-16
 
213,066

 
(50,283
)
 
194,566

 
(41,786
)
Patents and technology
6-14
 
84,052

 
(35,519
)
 
69,352

 
(29,551
)
Trademarks/trade names
10-30
 
11,950

 
(9,871
)
 
11,950

 
(9,412
)
Other
Up to 15
 
20,551

 
(16,115
)
 
20,551

 
(15,413
)
 
 
 
735,158

 
(214,173
)
 
701,958

 
(186,845
)
Unamortized intangible assets:
 
 
 
 
 
 
 
 
 
Trade names
 
 
42,770

 
—

 
38,370

 
—

Foreign currency translation
 
 
(21,672
)
 
—

 
(25,161
)
 
—

Total other intangible assets
 
 
$
756,256

 
$
(214,173
)
 
$
715,167

 
$
(186,845
)


Estimated amortization of intangible assets for future periods is as follows: 2016 - $37,000; 2017 - $41,000; 2018 - $42,000; 2019 - $40,000 and 2020 - $38,000.

In connection with the acquisition of FOBOHA in August 2016, the Company recorded intangible assets of $37,600, which includes $18,500 of customer relationships, $14,700 of patents and technology and $4,400 of an indefinite life trade name. The weighted-average useful lives of the acquired amortizable assets were 16 years and 7 years, respectively.

In the second quarter of 2016 management performed its annual impairment testing of its trade names, indefinite-lived intangible assets. Based on this assessment, there was no impairment recognized.

The Company entered into Component Repair Programs ("CRPs") with General Electric ("GE") during the fourth quarter of 2013 ("CRP 1"), the second quarter of 2014 ("CRP 2") and the fourth quarter of 2015 ("CRP 3"). The CRPs provide for, among other items, the right to sell certain aftermarket component repair services for CFM56, CF6, CF34 and LM engines directly to other customers as one of a few GE licensed suppliers. In addition, the CRPs extend certain existing contracts under which the Company currently provides these services directly to GE.

The Company agreed to pay $26,639 as consideration for the rights related to CRP 1. Of this balance, the Company paid $16,639 in the fourth quarter of 2013, $9,100 in the fourth quarter of 2014, and $900 in the first quarter of 2016. The Company agreed to pay $80,000 as consideration for the rights related to CRP 2. The Company paid $41,000 in the second quarter of 2014, $20,000 in the fourth quarter of 2014 and $19,000 in the second quarter of 2015. The Company agreed to pay $5,200 as consideration for the rights related to CRP 3. Of this balance, the Company paid $2,000 in the fourth quarter of 2015 and the remaining payment of $3,200 is due by December 31, 2016 and has been included within accrued liabilities. The Company recorded the CRP payments as an intangible asset which is recognized as a reduction of sales over the remaining useful life of these engine programs.
Debt
Debt
Debt

The Company's debt agreements contain financial covenants that require the maintenance of interest coverage and leverage ratios. The Company is in compliance with its financial covenants as of September 30, 2016, and continues to monitor its future compliance based on current and anticipated future economic conditions.

Long-term debt and notes and overdrafts payable at September 30, 2016 and December 31, 2015 consisted of:
 
 
September 30, 2016
 
December 31, 2015
 
 
Carrying
Amount
 
Fair
Value
 
Carrying
Amount
 
Fair
Value
Revolving credit agreement
 
$
406,410

 
$
407,881

 
$
379,700

 
$
375,188

3.97% Senior Notes
 
100,000

 
108,447

 
100,000

 
102,484

Borrowings under lines of credit and overdrafts
 
13,200

 
13,200

 
22,680

 
22,680

Capital leases
 
6,175

 
6,398

 
7,105

 
7,503

Other foreign bank borrowings
 
1,686

 
1,653

 
421

 
410

 
 
527,471

 
537,579

 
509,906

 
508,265

Less current maturities
 
(15,411
)
 
 
 
(24,195
)
 
 
Long-term debt
 
$
512,060

 
 
 
$
485,711

 
 

In September 2013, the Company entered into a second amendment to its fifth amended and restated revolving credit agreement (the "Amended Credit Agreement") and retained Bank of America, N.A. as the administrative agent for the lenders. The $750,000 Amended Credit Agreement matures in September 2018. The Amended Credit Agreement added a new foreign subsidiary borrower in Germany, Barnes Group Acquisition GmbH, and included an accordion feature to increase the borrowing availability of the Company to $1,000,000. The Company may exercise the accordion feature upon request to the Administrative Agent as long as an event of default has not occurred or is continuing. The borrowing availability of $750,000, pursuant to the terms of the Amended Credit Agreement, allows for Euro-denominated borrowings equivalent to $500,000. Borrowings under the Amended Credit Agreement bear interest at LIBOR plus a spread ranging from 1.10% to 1.70% depending on the Company's leverage ratio at prior quarter end.

Borrowings and availability under the Amended Credit Agreement were $406,410 and $343,590, respectively, at September 30, 2016 and $379,700 and $370,300, respectively, at December 31, 2015. The average interest rate on these borrowings was 1.62% and 1.50% on September 30, 2016 and December 31, 2015, respectively. During the third quarter, the Company borrowed $100,000 under the Amended Credit Facility through an international subsidiary. The proceeds were distributed to the Parent Company and subsequently used to pay down U.S. borrowings under the Amended Credit Agreement. The fair value of the borrowings is based on observable Level 2 inputs. The borrowings were valued using discounted cash flows based upon the Company's estimated interest costs for similar types of borrowings.

In October 2014, the Company entered into a Note Purchase Agreement (“Note Purchase Agreement”), among the Company and New York Life Insurance Company, New York Life Insurance and Annuity Corporation and New York Life Insurance and Annuity Corporation Institutionally Owned Life Insurance Separate Account, as purchasers, for the issuance of $100,000 aggregate principal amount of 3.97% Senior Notes due October 17, 2024 (the “3.97% Senior Notes”). The Company completed funding of the transaction and issued the 3.97% Senior Notes on October 17, 2014.

The 3.97% Senior Notes are senior unsecured obligations of the Company and the Company pays interest semi-annually on April 17 and October 17 of each year at an annual rate of 3.97%. The 3.97% Senior Notes will mature on October 17, 2024 unless earlier prepaid in accordance with their terms. Subject to certain conditions, the Company may, at its option, prepay all or any part of the 3.97% Senior Notes in an amount equal to 100% of the principal amount of the 3.97% Senior Notes so prepaid, plus any accrued and unpaid interest to the date of prepayment, plus the Make-Whole Amount, as defined in the Note Purchase Agreement, with respect to such principal amount being prepaid. The fair value of the 3.97% Senior Notes was determined using the US Treasury yield and a long-term credit spread for similar types of borrowings, that represent Level 2 observable inputs.
The Company's borrowing capacity may be limited by various debt covenants in the Amended Credit Agreement and the Note Purchase Agreement (the "Agreements"). The Agreements contain customary affirmative and negative covenants, including, among others, limitations on indebtedness, liens, investments, restricted payments, dispositions and business activities. The Agreements require the Company to maintain a ratio of Consolidated Senior Debt, as defined, to Consolidated EBITDA, as defined, of not more than 3.25 times at the end of each fiscal quarter, provided that such ratio may increase to 3.50 times following the consummation of certain acquisitions. In addition, the Agreements require the Company to maintain (i) a ratio of Consolidated Total Debt, as defined, to Consolidated EBITDA of not more than 4.00 times at the end of each fiscal quarter, provided that such ratio may increase to 4.25 times following the consummation of certain acquisitions, and (ii) a ratio of Consolidated EBITDA to Consolidated Cash Interest Expense, as defined, of not less than 4.25 times at the end of any fiscal quarter.

In addition, the Company has available approximately $56,000 in uncommitted short-term bank credit lines ("Credit Lines") and overdraft facilities. Under the Credit Lines, $13,200 was borrowed at September 30, 2016 at an average interest rate of 1.38% and $22,500 was borrowed at December 31, 2015 at an average interest rate of 1.56%. The Company had also borrowed $0 and $180 under the overdraft facilities at September 30, 2016 and December 31, 2015, respectively. Repayments under the Credit Lines are due within one month after being borrowed. Repayments of the overdrafts are generally due within two days after being borrowed. The carrying amounts of the Credit Lines and overdrafts approximate fair value due to the short maturities of these financial instruments.
   
The Company has capital leases at the Thermoplay and Männer businesses. The fair value of the capital leases is based on observable Level 2 inputs. These instruments are valued using discounted cash flows based upon the Company's estimated interest costs for similar types of borrowings.

The Company also has other foreign bank borrowings, including borrowings at FOBOHA. The fair value of the other foreign bank borrowings is based on observable Level 2 inputs. These instruments are valued using discounted cash flows based upon the Company's estimated interest costs for similar types of borrowings.
Derivatives
Derivatives
Derivatives

The Company has manufacturing and sales facilities around the world and thus makes investments and conducts business transactions denominated in various currencies. The Company is also exposed to fluctuations in interest rates and commodity price changes. These financial exposures are monitored and managed by the Company as an integral part of its risk management program.

Financial instruments have been used by the Company to hedge its exposure to fluctuations in interest rates. In 2012, the Company entered into five-year interest rate swap agreements transacted with three banks which together convert the interest on the first $100,000 of the Company's one-month LIBOR-based borrowings from a variable rate plus the borrowing spread to a fixed rate of 1.03% plus the borrowing spread. These interest rate swap agreements were accounted for as cash flow hedges.

The Company also uses financial instruments to hedge its exposures to fluctuations in foreign currency exchange rates. The Company has various contracts outstanding which primarily hedge recognized assets or liabilities, and anticipated transactions in various currencies including the Euro, British pound sterling, U.S. dollar, Canadian dollar, Japanese yen, Singapore dollar, Korean won, Swedish kroner, Chinese renminbi, Mexican peso and Swiss franc. Certain foreign currency derivative instruments are treated as cash flow hedges of forecasted transactions. All foreign exchange contracts are due within two years.

The Company does not use derivatives for speculative or trading purposes or to manage commodity exposures.
Changes in the fair market value of derivatives that qualify as fair value hedges or cash flow hedges are recorded directly to earnings or accumulated other non-owner changes to equity, depending on the designation. Amounts recorded to accumulated other non-owner changes to equity are reclassified to earnings in a manner that matches the earnings impact of the hedged transaction. Any ineffective portion, or amounts related to contracts that are not designated as hedges, are recorded directly to earnings.

The Company's policy for classifying cash flows from derivatives is to report the cash flows consistent with the underlying hedged item. Other financing cash flows during the first nine months of 2016, as presented on the consolidated statements of cash flows, include $3,822 of net cash inflows from the settlement of foreign currency hedges related to intercompany financing.

The following table sets forth the fair value amounts of derivative instruments held by the Company.
 
September 30, 2016
 
December 31, 2015
 
Asset Derivatives
 
Liability Derivatives
 
Asset Derivatives
 
Liability Derivatives
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
Interest rate contracts
$
—

 
$
(238
)
 
$
—

 
$
(357
)
Foreign exchange contracts
—

 
(355
)
 
484

 
—

 
 
 
 
 
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
Foreign exchange contracts
74

 
(333
)
 
215

 
(101
)
Total derivatives
$
74

 
$
(926
)
 
$
699

 
$
(458
)


Asset derivatives are recorded in prepaid expenses and other current assets in the accompanying consolidated balance sheets. Liability derivatives related to interest rate contracts and foreign exchange contracts are recorded in other liabilities and accrued liabilities, respectively, in the accompanying consolidated balance sheets.

The following table sets forth the (loss) gain, net of tax, recorded in accumulated other comprehensive income (loss), net of tax, for the three- and nine- month periods ended September 30, 2016 and 2015 for derivatives held by the Company and designated as hedging instruments.
 
Three months ended September 30,
 
Nine months ended September 30,
 
2016
 
2015
 
2016
 
2015
Cash flow hedges:
 
 
 
 
 
 
 
Interest rate contracts
$
137

 
$
(151
)
 
$
74

 
$
(320
)
Foreign exchange contracts
(287
)
 
(23
)
 
(654
)
 
447

 
$
(150
)
 
$
(174
)
 
$
(580
)
 
$
127



Amounts related to the interest rate swaps included within accumulated other comprehensive income (loss) that were reclassified to expense during the first nine months of 2016 and 2015 resulted in a fixed rate of interest of 1.03% plus the borrowing spread for the first $100,000 of one-month LIBOR borrowings. Additionally, there were no amounts recognized in income for hedge ineffectiveness during the three- and nine-month periods ended September 30, 2016 and 2015.

The following table sets forth the net (loss) gain recorded in other expense (income), net in the consolidated statements of income for the three- and nine-month periods ended September 30, 2016 and 2015 for non-designated derivatives held by the Company. Such amounts were substantially offset by the net (gain) loss recorded on the underlying hedged asset or liability, also recorded in other expense (income), net.
 
Three months ended September 30,
 
Nine months ended September 30,
 
2016
 
2015
 
2016
 
2015
Foreign exchange contracts
$
(3,755
)
 
$
(2,431
)
 
$
(7,506
)
 
$
4,514

Fair Value Measurements
Fair Value Measurements
Fair Value Measurements

The provisions of the accounting standard for fair value define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This standard classifies the inputs used to measure fair value into the following hierarchy:

Level 1
Unadjusted quoted prices in active markets for identical assets or liabilities

Level 2
Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability

Level 3
Unobservable inputs for the asset or liability

The following table provides the financial assets and financial liabilities reported at fair value and measured on a recurring basis:
 
 
 
 
Fair Value Measurements Using
Description
 
Total
 
Quoted Prices in Active Markets for
Identical Assets
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
September 30, 2016
 
 
 
 
 
 
 
 
Asset derivatives
 
$
74

 
$
—

 
$
74

 
$
—

Liability derivatives
 
(926
)
 
—

 
(926
)
 
—

Bank acceptances
 
9,946

 
—

 
9,946

 
—

Rabbi trust assets
 
2,187

 
2,187

 
—

 
—

 
 
$
11,281

 
$
2,187

 
$
9,094

 
$
—

 
 
 
 
 
 
 
 
 
December 31, 2015
 
 
 
 
 
 
 
 
Asset derivatives
 
$
699

 
$
—

 
$
699

 
$
—

Liability derivatives
 
(458
)
 
—

 
(458
)
 
—

Bank acceptances
 
10,823

 
—

 
10,823

 
—

Rabbi trust assets
 
2,159

 
2,159

 
—

 
—

 
 
$
13,223


$
2,159

 
$
11,064

 
$
—



The derivative contracts are valued using observable current market information as of the reporting date such as the prevailing LIBOR-based interest rates and foreign currency spot and forward rates. Bank acceptances represent financial instruments accepted from certain Chinese customers in lieu of cash paid on receivables, generally range from three to six months in maturity and are guaranteed by banks. The carrying amounts of the bank acceptances, which are included within prepaid expenses and other current assets, approximate fair value due to their short maturities. The fair values of rabbi trust assets are based on quoted market prices from various financial exchanges.
Pension and Other Postretirement Benefits
Pension and Other Postretirement Benefits
Pension and Other Postretirement Benefits

Pension and other postretirement benefits expenses consisted of the following:
 
Three months ended September 30,
 
Nine months ended September 30,
Pensions
2016
 
2015
 
2016
 
2015
Service cost
$
1,354

 
$
1,374

 
$
4,056

 
$
4,126

Interest cost
4,869

 
4,976

 
14,650

 
14,968

Expected return on plan assets
(7,564
)
 
(8,048
)
 
(22,774
)
 
(24,207
)
Amortization of prior service cost
52

 
76

 
157

 
231

Amortization of actuarial losses
2,697

 
3,730

 
8,109

 
11,215

Net periodic benefit cost
$
1,408

 
$
2,108

 
$
4,198

 
$
6,333

 
 
 
 
 
 
 
 

 
Three months ended September 30,
 
Nine months ended September 30,
Other Postretirement Benefits
2016
 
2015
 
2016
 
2015
Service cost
$
31

 
$
36

 
$
92

 
$
109

Interest cost
440

 
459

 
1,324

 
1,377

Amortization of prior service credit
(93
)
 
(141
)
 
(280
)
 
(423
)
Amortization of actuarial losses
134

 
253

 
401

 
758

Net periodic benefit cost
$
512

 
$
607

 
$
1,537

 
$
1,821



As planned, the Company made a $15,000 discretionary contribution to the U.S. qualified pension plans in March 2016.
Income Taxes
Income Taxes
Income Taxes

The Company's effective tax rate for the first nine months of 2016 was 25.1% compared with 25.7% in the first nine months of 2015 and 23.2% for the full year 2015. The increase in the first nine months of 2016 effective tax rate from the full year 2015 rate is primarily due to the expiration of certain tax holidays, the absence of the 2015 refund of withholding taxes and the projected change in the mix of earnings attributable to higher-taxing jurisdictions, partially offset by lower planned repatriation of a portion of current year foreign earnings to the U.S and the excess tax benefit on stock awards, reflecting the amended guidance related to share-based payments made to employees. See Note 14 of the Consolidated Financial Statements.

The Aerospace and Industrial segments were previously awarded international tax holidays. All significant tax holidays for which the Company currently receives benefit are expected to expire in 2016 and 2017.
Changes in Accumulated Other Comprehensive Income (Loss) by Component
Changes in Accumulated Other Comprehensive Income by Component
Changes in Accumulated Other Comprehensive Income (Loss) by Component

The following table sets forth the changes in accumulated other comprehensive income (loss), net of tax, by component for the nine month periods ended September 30, 2016 and 2015:
 
Gains and Losses on Cash Flow Hedges
 
Pension and Other Postretirement Benefit Items
 
Foreign Currency Items
 
Total
January 1, 2016
$
115

 
$
(105,703
)
 
$
(37,664
)
 
$
(143,252
)
Other comprehensive (loss) income before reclassifications to consolidated statements of income
(823
)
 
283

 
2,100

 
1,560

Amounts reclassified from accumulated other comprehensive income to the consolidated statements of income
243

 
5,457

 
—

 
5,700

Net current-period other comprehensive (loss) income
(580
)
 
5,740

 
2,100

 
7,260

September 30, 2016
$
(465
)
 
$
(99,963
)
 
$
(35,564
)
 
$
(135,992
)


 
Gains and Losses on Cash Flow Hedges
 
Pension and Other Postretirement Benefit Items
 
Foreign Currency Items
 
Total
January 1, 2015
$
(732
)
 
$
(115,289
)
 
$
16,568

 
$
(99,453
)
Other comprehensive (loss) income before reclassifications to consolidated statements of income
(665
)
 
1,412

 
(38,847
)
 
(38,100
)
Amounts reclassified from accumulated other comprehensive income to the consolidated statements of income
792

 
7,631

 
—

 
8,423

Net current-period other comprehensive income (loss)
127

 
9,043

 
(38,847
)
 
(29,677
)
September 30, 2015
$
(605
)
 
$
(106,246
)
 
$
(22,279
)
 
$
(129,130
)


The following table sets forth the reclassifications out of accumulated other comprehensive income (loss) by component for the three- and nine- month periods ended September 30, 2016 and 2015:

Details about Accumulated Other Comprehensive Income (Loss) Components
 
Amount Reclassified from Accumulated Other Comprehensive Income (Loss)
Affected Line Item in the Consolidated Statements of Income
 
 
Three months ended September 30, 2016
 
Three months ended September 30, 2015
 
 
Gains and losses on cash flow hedges
 
 
 
 
 
 
     Interest rate contracts
 
$
(137
)
 
$
(214
)
 
Interest expense
     Foreign exchange contracts
 
(20
)
 
(137
)
 
Net sales
 
 
(157
)
 
(351
)
 
Total before tax
 
 
55

 
110

 
Tax benefit
 
 
(102
)
 
(241
)
 
Net of tax
 
 
 
 
 
 
 
Pension and other postretirement benefit items
 
 
 
 
 
 
     Amortization of prior-service credits, net
 
$
41

 
$
65

 
(A)
Amortization of actuarial losses
 
(2,831
)
 
(3,983
)
 
(A)
 
 
(2,790
)
 
(3,918
)
 
Total before tax
 
 
977

 
1,383

 
Tax benefit
 
 
(1,813
)
 
(2,535
)
 
Net of tax
 
 
 
 
 
 
 
Total reclassifications in the period
 
$
(1,915
)
 
$
(2,776
)
 
 

(A) These accumulated other comprehensive income (loss) components are included within the computation of net periodic pension cost. See Note 9.

Details about Accumulated Other Comprehensive Income (Loss) Components
 
Amount Reclassified from Accumulated Other Comprehensive Income (Loss)
Affected Line Item in the Consolidated Statements of Income
 
 
Nine months ended September 30, 2016
 
Nine months ended September 30, 2015
 
 
Gains and losses on cash flow hedges
 
 
 
 
 
 
     Interest rate contracts
 
$
(437
)
 
$
(642
)
 
Interest expense
     Foreign exchange contracts
 
40

 
(499
)
 
Net sales
 
 
(397
)
 
(1,141
)
 
Total before tax
 
 
154

 
349

 
Tax benefit
 
 
(243
)
 
(792
)
 
Net of tax
 
 
 
 
 
 
 
Pension and other postretirement benefit items
 
 
 
 
 
 
     Amortization of prior-service credits, net
 
$
123

 
$
192

 
(A)
Amortization of actuarial losses
 
(8,510
)
 
(11,973
)
 
(A)
 
 
(8,387
)
 
(11,781
)
 
Total before tax
 
 
2,930

 
4,150

 
Tax benefit
 
 
(5,457
)
 
(7,631
)
 
Net of tax
 
 
 
 
 
 
 
Total reclassifications in the period
 
$
(5,700
)
 
$
(8,423
)
 
 

(A) These accumulated other comprehensive income (loss) components are included within the computation of net periodic pension cost. See Note 9.
Information on Business Segments
Information on Business Segments
Information on Business Segments

The Company is organized based upon the nature of its products and services and reports under two global business segments: Industrial and Aerospace. Segment information is consistent with how management reviews the businesses, makes investing and resource allocation decisions and assesses operating performance. The Company has not aggregated operating segments for purposes of identifying these two reportable segments.
The Industrial segment is a global manufacturer of highly-engineered, high-quality precision components, products and systems for critical applications serving a diverse customer base in end-markets such as transportation, industrial equipment, consumer products, packaging, electronics, medical devices, and energy. Focused on innovative custom solutions, Industrial participates in the design phase of components and assemblies whereby customers receive the benefits of application and systems engineering, new product development, testing and evaluation, and the manufacturing of final products. Products are sold primarily through its direct sales force and global distribution channels. Industrial consists of three strategic business units that include Molding Solutions, Nitrogen Gas Products and Engineered Components. Industrial's Molding Solutions businesses design and manufacture customized hot runner systems, advanced mold cavity sensors and process control systems, and precision high cavitation mold assemblies - collectively, the enabling technologies for many complex injection molding applications. Industrial's Nitrogen Gas Products business manufactures nitrogen gas springs for the tool and die industry and manifold systems used to precisely control stamping presses. It also specializes in gas hydraulic suspension systems for heavy duty off road vehicles. Industrial's Engineered Components businesses manufacture and supply precision mechanical products used in transportation and industrial applications, including mechanical springs, high-precision punched and fine-blanked components, and retention rings.

The Aerospace segment is a global provider of fabricated and precision-machined components and assemblies for original equipment manufacturer ("OEM") turbine engine, airframe and industrial gas turbine builders, and the military. The Aerospace Aftermarket provides jet engine component maintenance overhaul and repair ("MRO") services, including our Component Repair Programs ("CRP's"), for many of the world's major turbine engine manufacturers, commercial airlines and the military. The Aerospace Aftermarket activities also include the manufacture and delivery of aerospace aftermarket spare parts, including the revenue sharing programs ("RSPs") under which the Company receives an exclusive right to supply designated aftermarket parts over the life of the related aircraft engine program.

The following tables set forth information about the Company's operations by its two reportable segments:
 
Three months ended September 30,
 
Nine months ended September 30,
 
2016
 
2015
 
2016
 
2015
Net sales
 
 
 
 
 
 
 
   Industrial
$
208,748

 
$
189,106

 
$
608,534

 
$
592,044

   Aerospace
102,816

 
102,329

 
298,055

 
314,910

   Intersegment sales
(3
)
 
(1
)
 
(3
)
 
(5
)
Total net sales
$
311,561

 
$
291,434

 
$
906,586

 
$
906,949

 
 
 
 
 
 
 
 
Operating profit
 
 
 
 
 
 
 
   Industrial
$
34,958

 
$
27,304

 
$
99,445

 
$
88,262

   Aerospace
16,859

 
16,443

 
41,359

 
50,029

Total operating profit
51,817

 
43,747

 
140,804

 
138,291

   Interest expense
3,020

 
2,637

 
8,826

 
7,944

   Other expense (income), net
621

 
(545
)
 
24

 
(228
)
Income before income taxes
$
48,176

 
$
41,655

 
$
131,954

 
$
130,575



 
September 30, 2016
 
December 31, 2015
Assets
 
 
 
   Industrial (A)
$
1,441,695

 
$
1,241,206

   Aerospace
637,232

 
654,147

   Other (B)
142,956

 
166,513

Total assets
$
2,221,883

 
$
2,061,866


(A) The change in assets within the Industrial segment primarily reflects an increase in assets resulting from the acquisition of FOBOHA.
(B) "Other" assets include corporate-controlled assets, the majority of which are cash and deferred tax assets.
Commitments and Contingencies
Commitments and Contingencies
Commitments and Contingencies

Product Warranties

The Company provides product warranties in connection with the sale of certain products. From time to time, the Company is subject to customer claims with respect to product warranties. Product warranty liabilities were not material as of September 30, 2016 or December 31, 2015.

Contract Matters

During the third quarter of 2015 the Company recorded a $2,788 charge related to a contract termination dispute following the decision of a customer, Triumph Actuation Systems - Yakima, LLC ("Triumph"), to in-source work. The Company has approximately $8,000 of net assets, in connection with this dispute, recorded on the Consolidated Balance Sheet as of September 30, 2016. The Company has assessed recoverability of costs and damages provided by the relevant contracts and, during the fourth quarter of 2015, filed an arbitration demand before the American Arbitration Association for recovery of these costs and damages for approximately $15,000. Also during the fourth quarter, Triumph responded with a counterclaim of a similar amount, alleging various breaches and seeking damages, which the Company views as unsubstantiated. During 2016, Triumph adjusted the amount of its counterclaim to approximately $23,000, and the Company adjusted its claim to seek approximately $12,000.

As scheduled in May 2016, the parties arbitrated the matter and the Company continues to view the Triumph counterclaim as unsubstantiated. The Company and Triumph submitted post-hearing filings during the third quarter and are now awaiting the arbiter's decision, which is expected in the fourth quarter of 2016. While it is currently not possible to determine the ultimate outcome of this matter, the Company believes that the ultimate resolution will not have a material adverse effect on the Company’s consolidated financial position or liquidity, but could be material to the consolidated results of operations of any one period.
Accounting Changes
Accounting Changes
Accounting Changes

In March 2016, the FASB amended its guidance related to the accounting for certain aspects of share-based payments to employees. The amended guidance requires that all tax effects related to share-based payments are recorded at settlement (or expiration) through the income statement, rather than through equity. Cash flows related to excess tax benefits will no longer be separately classified as a financing activity apart from other income tax cash flows. The amended guidance also allows for an employer to repurchase additional employee shares for tax withholding purposes without requiring liability accounting and clarifies that all cash payments made to tax authorities on an employee’s behalf for withheld shares should be presented as a financing activity on the Consolidated Statements of Cash Flows. The guidance also allows for a policy election to account for forfeitures as they occur, rather than accounting for them on an estimated basis. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted.

The Company elected to early adopt this guidance in the third quarter of 2016. This adoption requires the Company to reflect any adjustments as of January 1, 2016, the beginning of the annual period that includes the interim period of adoption. The most significant impact of adoption was the recognition of excess tax benefits in our provision for income taxes rather than through equity for all periods in fiscal year 2016, which resulted in the recognition of excess tax benefits in our provision for income taxes of $1,530 for the three and nine-month periods ended September 30, 2016. In connection with the additional amendments within the amended guidance, the Company recognized state tax loss carryforwards in the amount of $195, which impacted retained earnings as of January 1, 2016. The cumulative effect of this change is required to be recorded in retained earnings. The Company has elected to continue to estimate forfeitures expected to occur to determine the amount of compensation cost to be recognized in each period.

The presentation requirements for cash flows related to excess tax benefits and employee taxes paid for withheld shares were applied retrospectively to all periods presented. This resulted in an increase in both net cash provided by operating activities and net cash used by financing activities of $1,402, $2,320 and $7,519 for the three, six and nine month periods ended March 31, June 30 and September 30, 2015, respectively, and $413 and $524 for the three and six month periods ended March 31 and June 30, 2016, respectively.    

In November 2015, the FASB amended its guidance related to the balance sheet classification of deferred income taxes. The amended guidance removes the requirement to separate and classify deferred income tax liabilities and assets into current
and non-current amounts and requires an entity to now classify all deferred tax liabilities and assets as non-current. The
amended guidance can be adopted either on a prospective or retrospective basis and is effective for interim and annual periods
beginning after December 15, 2016. Early adoption is permitted. The provisions of the amended guidance were adopted on a prospective basis during the first quarter of 2016. The provisions resulted in the classification of $26,072 and $1,173 of current deferred income tax assets and liabilities, respectively, into non-current deferred income tax assets and liabilities, respectively, on the Consolidated Balance Sheet as of September 30, 2016.

In April 2015, the FASB amended its guidance related to the presentation of debt issuance costs. The amended guidance specifies that debt issuance costs related to notes shall be reported in the balance sheet as a direct deduction from the face amount of that note and that amortization of debt issuance costs shall be reported as interest expense. The amended guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 and should be applied retrospectively. The Company adopted the guidance during the first quarter of 2016 and it did not have a material impact on its Consolidated Financial Statements.
Inventories (Tables)
Schedule of Inventory
The components of inventories consisted of:
 
September 30, 2016
 
December 31, 2015
Finished goods
$
70,221


$
76,836

Work-in-process
105,495

 
77,061

Raw material and supplies
57,693

 
54,714

 
$
233,409


$
208,611

Goodwill and Other Intangible Assets (Tables)
Schedule of Goodwill 
The following table sets forth the change in the carrying amount of goodwill for each reportable segment and for the Company as of and for the period ended September 30, 2016:
 
Industrial
 
Aerospace
 
Total Company
January 1, 2016
$
557,206

 
$
30,786

 
$
587,992

Goodwill acquired
73,753

 
—

 
73,753

Foreign currency translation
4,295

 
—

 
4,295

September 30, 2016
$
635,254

 
$
30,786

 
$
666,040

Schedule of Finite-Lived Intangible Assets by Major Class 
Other intangible assets consisted of:
 
 
 
September 30, 2016
 
December 31, 2015
 
Range of
Life -Years
 
Gross Amount
 
Accumulated Amortization
 
Gross Amount
 
Accumulated Amortization
Amortized intangible assets:
 
 
 
 
 
 
 
 
 
Revenue sharing programs (RSPs)
Up to 30
 
$
293,700

 
$
(93,142
)
 
$
293,700

 
$
(84,629
)
Component repair programs (CRPs)
Up to 30
 
111,839

 
(9,243
)
 
111,839

 
(6,054
)
Customer lists/relationships
10-16
 
213,066

 
(50,283
)
 
194,566

 
(41,786
)
Patents and technology
6-14
 
84,052

 
(35,519
)
 
69,352

 
(29,551
)
Trademarks/trade names
10-30
 
11,950

 
(9,871
)
 
11,950

 
(9,412
)
Other
Up to 15
 
20,551

 
(16,115
)
 
20,551

 
(15,413
)
 
 
 
735,158

 
(214,173
)
 
701,958

 
(186,845
)
Unamortized intangible assets:
 
 
 
 
 
 
 
 
 
Trade names
 
 
42,770

 
—

 
38,370

 
—

Foreign currency translation
 
 
(21,672
)
 
—

 
(25,161
)
 
—

Total other intangible assets
 
 
$
756,256

 
$
(214,173
)
 
$
715,167

 
$
(186,845
)
Debt (Tables)
Schedule of Debt
Long-term debt and notes and overdrafts payable at September 30, 2016 and December 31, 2015 consisted of:
 
 
September 30, 2016
 
December 31, 2015
 
 
Carrying
Amount
 
Fair
Value
 
Carrying
Amount
 
Fair
Value
Revolving credit agreement
 
$
406,410

 
$
407,881

 
$
379,700

 
$
375,188

3.97% Senior Notes
 
100,000

 
108,447

 
100,000

 
102,484

Borrowings under lines of credit and overdrafts
 
13,200

 
13,200

 
22,680

 
22,680

Capital leases
 
6,175

 
6,398

 
7,105

 
7,503

Other foreign bank borrowings
 
1,686

 
1,653

 
421

 
410

 
 
527,471

 
537,579

 
509,906

 
508,265

Less current maturities
 
(15,411
)
 
 
 
(24,195
)
 
 
Long-term debt
 
$
512,060

 
 
 
$
485,711

 
 
Derivatives (Tables)
Gain (Loss) Recorded in Other Expense (Income), Net in Consolidated Statements of Income 
The following table sets forth the net (loss) gain recorded in other expense (income), net in the consolidated statements of income for the three- and nine-month periods ended September 30, 2016 and 2015 for non-designated derivatives held by the Company. Such amounts were substantially offset by the net (gain) loss recorded on the underlying hedged asset or liability, also recorded in other expense (income), net.
 
Three months ended September 30,
 
Nine months ended September 30,
 
2016
 
2015
 
2016
 
2015
Foreign exchange contracts
$
(3,755
)
 
$
(2,431
)
 
$
(7,506
)
 
$
4,514

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) 
The following table sets forth the (loss) gain, net of tax, recorded in accumulated other comprehensive income (loss), net of tax, for the three- and nine- month periods ended September 30, 2016 and 2015 for derivatives held by the Company and designated as hedging instruments.
 
Three months ended September 30,
 
Nine months ended September 30,
 
2016
 
2015
 
2016
 
2015
Cash flow hedges:
 
 
 
 
 
 
 
Interest rate contracts
$
137

 
$
(151
)
 
$
74

 
$
(320
)
Foreign exchange contracts
(287
)
 
(23
)
 
(654
)
 
447

 
$
(150
)
 
$
(174
)
 
$
(580
)
 
$
127

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value 
The following table sets forth the fair value amounts of derivative instruments held by the Company.
 
September 30, 2016
 
December 31, 2015
 
Asset Derivatives
 
Liability Derivatives
 
Asset Derivatives
 
Liability Derivatives
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
Interest rate contracts
$
—

 
$
(238
)
 
$
—

 
$
(357
)
Foreign exchange contracts
—

 
(355
)
 
484

 
—

 
 
 
 
 
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
Foreign exchange contracts
74

 
(333
)
 
215

 
(101
)
Total derivatives
$
74

 
$
(926
)
 
$
699

 
$
(458
)
Fair Value Measurements (Tables)
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following table provides the financial assets and financial liabilities reported at fair value and measured on a recurring basis:
 
 
 
 
Fair Value Measurements Using
Description
 
Total
 
Quoted Prices in Active Markets for
Identical Assets
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
September 30, 2016
 
 
 
 
 
 
 
 
Asset derivatives
 
$
74

 
$
—

 
$
74

 
$
—

Liability derivatives
 
(926
)
 
—

 
(926
)
 
—

Bank acceptances
 
9,946

 
—

 
9,946

 
—

Rabbi trust assets
 
2,187

 
2,187

 
—

 
—

 
 
$
11,281

 
$
2,187

 
$
9,094

 
$
—

 
 
 
 
 
 
 
 
 
December 31, 2015
 
 
 
 
 
 
 
 
Asset derivatives
 
$
699

 
$
—

 
$
699

 
$
—

Liability derivatives
 
(458
)
 
—

 
(458
)
 
—

Bank acceptances
 
10,823

 
—

 
10,823

 
—

Rabbi trust assets
 
2,159

 
2,159

 
—

 
—

 
 
$
13,223


$
2,159

 
$
11,064

 
$
—

Pension and Other Postretirement Benefits (Tables)
Schedule of Net Benefit Costs
Pension and other postretirement benefits expenses consisted of the following:
 
Three months ended September 30,
 
Nine months ended September 30,
Pensions
2016
 
2015
 
2016
 
2015
Service cost
$
1,354

 
$
1,374

 
$
4,056

 
$
4,126

Interest cost
4,869

 
4,976

 
14,650

 
14,968

Expected return on plan assets
(7,564
)
 
(8,048
)
 
(22,774
)
 
(24,207
)
Amortization of prior service cost
52

 
76

 
157

 
231

Amortization of actuarial losses
2,697

 
3,730

 
8,109

 
11,215

Net periodic benefit cost
$
1,408

 
$
2,108

 
$
4,198

 
$
6,333

 
 
 
 
 
 
 
 

 
Three months ended September 30,
 
Nine months ended September 30,
Other Postretirement Benefits
2016
 
2015
 
2016
 
2015
Service cost
$
31

 
$
36

 
$
92

 
$
109

Interest cost
440

 
459

 
1,324

 
1,377

Amortization of prior service credit
(93
)
 
(141
)
 
(280
)
 
(423
)
Amortization of actuarial losses
134

 
253

 
401

 
758

Net periodic benefit cost
$
512

 
$
607

 
$
1,537

 
$
1,821

Changes in Accumulated Other Comprehensive Income (Loss) by Component (Tables)
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) By Component 
The following table sets forth the changes in accumulated other comprehensive income (loss), net of tax, by component for the nine month periods ended September 30, 2016 and 2015:
 
Gains and Losses on Cash Flow Hedges
 
Pension and Other Postretirement Benefit Items
 
Foreign Currency Items
 
Total
January 1, 2016
$
115

 
$
(105,703
)
 
$
(37,664
)
 
$
(143,252
)
Other comprehensive (loss) income before reclassifications to consolidated statements of income
(823
)
 
283

 
2,100

 
1,560

Amounts reclassified from accumulated other comprehensive income to the consolidated statements of income
243

 
5,457

 
—

 
5,700

Net current-period other comprehensive (loss) income
(580
)
 
5,740

 
2,100

 
7,260

September 30, 2016
$
(465
)
 
$
(99,963
)
 
$
(35,564
)
 
$
(135,992
)


 
Gains and Losses on Cash Flow Hedges
 
Pension and Other Postretirement Benefit Items
 
Foreign Currency Items
 
Total
January 1, 2015
$
(732
)
 
$
(115,289
)
 
$
16,568

 
$
(99,453
)
Other comprehensive (loss) income before reclassifications to consolidated statements of income
(665
)
 
1,412

 
(38,847
)
 
(38,100
)
Amounts reclassified from accumulated other comprehensive income to the consolidated statements of income
792

 
7,631

 
—

 
8,423

Net current-period other comprehensive income (loss)
127

 
9,043

 
(38,847
)
 
(29,677
)
September 30, 2015
$
(605
)
 
$
(106,246
)
 
$
(22,279
)
 
$
(129,130
)
Schedule of Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss) to the Consolidated Statements of Income 
The following table sets forth the reclassifications out of accumulated other comprehensive income (loss) by component for the three- and nine- month periods ended September 30, 2016 and 2015:

Details about Accumulated Other Comprehensive Income (Loss) Components
 
Amount Reclassified from Accumulated Other Comprehensive Income (Loss)
Affected Line Item in the Consolidated Statements of Income
 
 
Three months ended September 30, 2016
 
Three months ended September 30, 2015
 
 
Gains and losses on cash flow hedges
 
 
 
 
 
 
     Interest rate contracts
 
$
(137
)
 
$
(214
)
 
Interest expense
     Foreign exchange contracts
 
(20
)
 
(137
)
 
Net sales
 
 
(157
)
 
(351
)
 
Total before tax
 
 
55

 
110

 
Tax benefit
 
 
(102
)
 
(241
)
 
Net of tax
 
 
 
 
 
 
 
Pension and other postretirement benefit items
 
 
 
 
 
 
     Amortization of prior-service credits, net
 
$
41

 
$
65

 
(A)
Amortization of actuarial losses
 
(2,831
)
 
(3,983
)
 
(A)
 
 
(2,790
)
 
(3,918
)
 
Total before tax
 
 
977

 
1,383

 
Tax benefit
 
 
(1,813
)
 
(2,535
)
 
Net of tax
 
 
 
 
 
 
 
Total reclassifications in the period
 
$
(1,915
)
 
$
(2,776
)
 
 

(A) These accumulated other comprehensive income (loss) components are included within the computation of net periodic pension cost. See Note 9.

Details about Accumulated Other Comprehensive Income (Loss) Components
 
Amount Reclassified from Accumulated Other Comprehensive Income (Loss)
Affected Line Item in the Consolidated Statements of Income
 
 
Nine months ended September 30, 2016
 
Nine months ended September 30, 2015
 
 
Gains and losses on cash flow hedges
 
 
 
 
 
 
     Interest rate contracts
 
$
(437
)
 
$
(642
)
 
Interest expense
     Foreign exchange contracts
 
40

 
(499
)
 
Net sales
 
 
(397
)
 
(1,141
)
 
Total before tax
 
 
154

 
349

 
Tax benefit
 
 
(243
)
 
(792
)
 
Net of tax
 
 
 
 
 
 
 
Pension and other postretirement benefit items
 
 
 
 
 
 
     Amortization of prior-service credits, net
 
$
123

 
$
192

 
(A)
Amortization of actuarial losses
 
(8,510
)
 
(11,973
)
 
(A)
 
 
(8,387
)
 
(11,781
)
 
Total before tax
 
 
2,930

 
4,150

 
Tax benefit
 
 
(5,457
)
 
(7,631
)
 
Net of tax
 
 
 
 
 
 
 
Total reclassifications in the period
 
$
(5,700
)
 
$
(8,423
)
 
 

(A) These accumulated other comprehensive income (loss) components are included within the computation of net periodic pension cost. See Note 9.

Information on Business Segments (Tables)
Schedule of Segment Reporting Information, by Segment
The following tables set forth information about the Company's operations by its two reportable segments:
 
Three months ended September 30,
 
Nine months ended September 30,
 
2016
 
2015
 
2016
 
2015
Net sales
 
 
 
 
 
 
 
   Industrial
$
208,748

 
$
189,106

 
$
608,534

 
$
592,044

   Aerospace
102,816

 
102,329

 
298,055

 
314,910

   Intersegment sales
(3
)
 
(1
)
 
(3
)
 
(5
)
Total net sales
$
311,561

 
$
291,434

 
$
906,586

 
$
906,949

 
 
 
 
 
 
 
 
Operating profit
 
 
 
 
 
 
 
   Industrial
$
34,958

 
$
27,304

 
$
99,445

 
$
88,262

   Aerospace
16,859

 
16,443

 
41,359

 
50,029

Total operating profit
51,817

 
43,747

 
140,804

 
138,291

   Interest expense
3,020

 
2,637

 
8,826

 
7,944

   Other expense (income), net
621

 
(545
)
 
24

 
(228
)
Income before income taxes
$
48,176

 
$
41,655

 
$
131,954

 
$
130,575



 
September 30, 2016
 
December 31, 2015
Assets
 
 
 
   Industrial (A)
$
1,441,695

 
$
1,241,206

   Aerospace
637,232

 
654,147

   Other (B)
142,956

 
166,513

Total assets
$
2,221,883

 
$
2,061,866


(A) The change in assets within the Industrial segment primarily reflects an increase in assets resulting from the acquisition of FOBOHA.
(B) "Other" assets include corporate-controlled assets, the majority of which are cash and deferred tax assets.
Acquisition (Details)
In Thousands, unless otherwise specified
0 Months Ended 1 Months Ended 9 Months Ended 0 Months Ended
Sep. 30, 2016
USD ($)
Dec. 31, 2015
USD ($)
Aug. 31, 2016
FOBOHA Business [Member]
USD ($)
Aug. 31, 2016
FOBOHA Business [Member]
CHF
Sep. 30, 2016
FOBOHA Business [Member]
USD ($)
Sep. 30, 2016
FOBOHA Business [Member]
USD ($)
Aug. 31, 2016
FOBOHA Business [Member]
USD ($)
Aug. 31, 2016
FOBOHA Business [Member]
CHF
Aug. 31, 2016
FOBHOA - China Operations [Member]
USD ($)
Aug. 31, 2016
FOBHOA - China Operations [Member]
CHF
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
Cash payments
 
 
$ 143,094 
 140,762 
 
 
 
 
$ 130,658 
 128,528 
Payable to sellers
 
 
 
 
 
 
 
 
9,489 
9,334 
Liabilities incurred
 
 
 
 
 
 
 
 
2,947 
2,900 
Cash acquired
 
 
 
 
 
 
11,530 
11,342 
 
 
Intangible assets acquired
 
 
 
 
 
 
37,600 
 
 
 
Goodwill acquired
666,040 
587,992 
 
 
 
 
73,753 
 
 
 
Acquisition-related costs
 
 
 
 
 
2,118 
 
 
 
 
Net sales
 
 
 
 
$ 4,032 
 
 
 
 
 
Net Income Per Common Share (Details)
1 Months Ended 3 Months Ended 9 Months Ended
Feb. 29, 2016
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Net Income Per Common Share [Line Items]
 
 
 
 
 
Weighted average number of diluted shares outstanding adjustment (in shares)
 
366,251 
388,777 
436,941 
507,197 
Stock Options [Member]
 
 
 
 
 
Net Income Per Common Share [Line Items]
 
 
 
 
 
Antidilutive securities excluded from computation of EPS
 
209,907 
209,102 
315,440 
203,001 
Options, granted (in shares)
142,000 
 
 
 
 
Restricted Stock Units (RSUs) [Member]
 
 
 
 
 
Net Income Per Common Share [Line Items]
 
 
 
 
 
Other than options, granted (in shares)
119,814 
 
 
 
 
Performance Share Awards [Member]
 
 
 
 
 
Net Income Per Common Share [Line Items]
 
 
 
 
 
Antidilutive securities excluded from computation of EPS
 
0 
 
31,028 
 
Other than options, granted (in shares)
108,400 
 
 
 
 
Performance period
 
 
 
3 years 
 
Minimum range of target award of stock plan
 
 
 
0.00% 
 
Maximum range of target award of stock plan
 
 
 
250.00% 
 
Inventories (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Inventory Disclosure [Abstract]
 
 
Finished goods
$ 70,221 
$ 76,836 
Work-in-process
105,495 
77,061 
Raw material and supplies
57,693 
54,714 
Inventories
$ 233,409 
$ 208,611 
Goodwill and Other Intangible Assets (Details) (USD $)
3 Months Ended 9 Months Ended 9 Months Ended 9 Months Ended 9 Months Ended 9 Months Ended 9 Months Ended 9 Months Ended 3 Months Ended 3 Months Ended 3 Months Ended 9 Months Ended 1 Months Ended
Jun. 30, 2016
Sep. 30, 2016
Sep. 30, 2015
Dec. 31, 2015
Sep. 30, 2016
Trade names [Member]
Dec. 31, 2015
Trade names [Member]
Sep. 30, 2016
Foreign currency translation [Member]
Dec. 31, 2015
Foreign currency translation [Member]
Sep. 30, 2016
Other intangible assets [Member]
Dec. 31, 2015
Other intangible assets [Member]
Sep. 30, 2016
Revenue sharing programs (RSPs) [Member]
Dec. 31, 2015
Revenue sharing programs (RSPs) [Member]
Sep. 30, 2016
Revenue sharing programs (RSPs) [Member]
Maximum [Member]
Sep. 30, 2016
Component repair programs (CRPs) [Member]
Dec. 31, 2015
Component repair programs (CRPs) [Member]
Sep. 30, 2016
Component repair programs (CRPs) [Member]
Maximum [Member]
Sep. 30, 2016
Customer lists/relationships [Member]
Dec. 31, 2015
Customer lists/relationships [Member]
Sep. 30, 2016
Customer lists/relationships [Member]
Minimum [Member]
Sep. 30, 2016
Customer lists/relationships [Member]
Maximum [Member]
Sep. 30, 2016
Patents and technology [Member]
Dec. 31, 2015
Patents and technology [Member]
Sep. 30, 2016
Patents and technology [Member]
Minimum [Member]
Sep. 30, 2016
Patents and technology [Member]
Maximum [Member]
Sep. 30, 2016
Trademarks/trade names [Member]
Dec. 31, 2015
Trademarks/trade names [Member]
Sep. 30, 2016
Trademarks/trade names [Member]
Minimum [Member]
Sep. 30, 2016
Trademarks/trade names [Member]
Maximum [Member]
Sep. 30, 2016
Other [Member]
Dec. 31, 2015
Other [Member]
Sep. 30, 2016
Other [Member]
Maximum [Member]
Mar. 31, 2016
Component Repair Program One [Member]
Dec. 31, 2014
Component Repair Program One [Member]
Dec. 31, 2013
Component Repair Program One [Member]
Sep. 30, 2016
Component Repair Program One [Member]
Jun. 30, 2015
Component Repair Program Two [Member]
Dec. 31, 2014
Component Repair Program Two [Member]
Jun. 30, 2014
Component Repair Program Two [Member]
Sep. 30, 2016
Component Repair Program Two [Member]
Dec. 31, 2015
Component Repair Program Three [Member]
Sep. 30, 2016
Component Repair Program Three [Member]
Sep. 30, 2016
Component Repair Program Three [Member]
Accrued Liabilities [Member]
Sep. 30, 2016
Industrial [Member]
Sep. 30, 2016
Aerospace [Member]
Aug. 31, 2016
FOBOHA Business [Member]
Aug. 31, 2016
FOBOHA Business [Member]
Trade names [Member]
Aug. 31, 2016
FOBOHA Business [Member]
Customer lists/relationships [Member]
Aug. 31, 2016
FOBOHA Business [Member]
Patents and technology [Member]
Goodwill:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill, beginning of period
 
$ 587,992,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 557,206,000 
$ 30,786,000 
 
 
 
 
Goodwill acquired
 
73,753,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
73,753,000 
0 
 
 
 
 
Foreign currency translation
 
4,295,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4,295,000 
0 
 
 
 
 
Goodwill, end of period
 
666,040,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
635,254,000 
30,786,000 
73,753,000 
 
 
 
Goodwill impairment
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Intangible Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Range of life
 
 
 
 
 
 
 
 
 
 
 
 
30 years 
 
 
30 years 
 
 
10 years 
16 years 
 
 
6 years 
14 years 
 
 
10 years 
30 years 
 
 
15 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross Amount
 
735,158,000 
 
701,958,000 
42,770,000 
38,370,000 
 
 
756,256,000 
715,167,000 
293,700,000 
293,700,000 
 
111,839,000 
111,839,000 
 
213,066,000 
194,566,000 
 
 
84,052,000 
69,352,000 
 
 
11,950,000 
11,950,000 
 
 
20,551,000 
20,551,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated Amortization
 
(214,173,000)
 
(186,845,000)
0 
0 
0 
0 
(214,173,000)
(186,845,000)
(93,142,000)
(84,629,000)
 
(9,243,000)
(6,054,000)
 
(50,283,000)
(41,786,000)
 
 
(35,519,000)
(29,551,000)
 
 
(9,871,000)
(9,412,000)
 
 
(16,115,000)
(15,413,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross Amount
 
 
 
 
 
 
(21,672,000)
(25,161,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization of intangible assets expected in 2016
 
37,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization of intangible assets expected in 2017
 
41,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization of intangible assets expected in 2018
 
42,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization of intangible assets expected in 2019
 
40,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization of intangible assets expected in 2020
 
38,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Indefinite-lived and finite-lived intangible assets acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
37,600,000 
 
 
 
Finite-lived intangible assets acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
18,500,000 
14,700,000 
Indefinite-lived intangible assets acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4,400,000 
 
 
Acquired finite-lived intangible assets, weighted-average useful life
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
16 years 
7 years 
Impairment of trade names, indefinite-lived intangible assets
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Component Repair Program payments consideration
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
26,639,000 
 
 
 
80,000,000 
 
5,200,000 
 
 
 
 
 
 
 
Component Repair Program payments
 
900,000 
19,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
900,000 
9,100,000 
16,639,000 
 
19,000,000 
20,000,000 
41,000,000 
 
2,000,000 
 
 
 
 
 
 
 
 
Component Repair Program payments expected in current fiscal year
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 3,200,000 
 
 
 
 
 
 
Debt (Debt Schedule) (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Debt Instrument [Line Items]
 
 
Fair value of debt
$ 537,579 
$ 508,265 
Total debt, net of unamortized discounts
527,471 
509,906 
Borrowings under lines of credit and overdrafts
13,200 
22,680 
Less current maturities
(15,411)
(24,195)
Long-term debt
512,060 
485,711 
Revolving Credit Agreement [Member]
 
 
Debt Instrument [Line Items]
 
 
Carrying amount of debt
406,410 
379,700 
Fair value of debt
407,881 
375,188 
Senior Notes [Member] |
3.97% Senior Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Carrying amount of debt
100,000 
100,000 
Fair value of debt
108,447 
102,484 
Borrowings Under Lines of Credit and Overdrafts [Member]
 
 
Debt Instrument [Line Items]
 
 
Fair value of debt
13,200 
22,680 
Borrowings under lines of credit and overdrafts
13,200 
22,680 
Capital Lease Obligations [Member]
 
 
Debt Instrument [Line Items]
 
 
Carrying amount of debt
6,175 
7,105 
Fair value of debt
6,398 
7,503 
Other Foreign Bank Borrowings [Member]
 
 
Debt Instrument [Line Items]
 
 
Carrying amount of debt
1,686 
421 
Fair value of debt
$ 1,653 
$ 410 
Debt (Narrative) (Details) (USD $)
1 Months Ended 9 Months Ended
Sep. 30, 2016
Dec. 31, 2015
Sep. 30, 2016
Revolving Credit Agreement [Member]
Dec. 31, 2015
Revolving Credit Agreement [Member]
Sep. 30, 2013
Revolving Credit Agreement [Member]
Sep. 30, 2016
Revolving Credit Agreement [Member]
Subsidiaries [Member]
Sep. 30, 2016
Revolving Credit Agreement [Member]
Euro Member Countries, Euro
Dec. 31, 2015
Revolving Credit Agreement [Member]
Euro Member Countries, Euro
Sep. 30, 2013
Revolving Credit Agreement [Member]
London Interbank Offered Rate (LIBOR) [Member]
Minimum [Member]
Sep. 30, 2013
Revolving Credit Agreement [Member]
London Interbank Offered Rate (LIBOR) [Member]
Maximum [Member]
Oct. 31, 2014
Senior Notes [Member]
Minimum [Member]
Oct. 31, 2014
Senior Notes [Member]
Maximum [Member]
Sep. 30, 2016
Senior Notes [Member]
3.97% Senior Notes [Member]
Dec. 31, 2015
Senior Notes [Member]
3.97% Senior Notes [Member]
Oct. 31, 2014
Senior Notes [Member]
3.97% Senior Notes [Member]
Oct. 31, 2014
Senior Notes [Member]
Adjusted for Certain Acquisitons [Member]
Maximum [Member]
Sep. 30, 2013
Revolving Credit Agreement [Member]
Sep. 30, 2016
Lines of Credit [Member]
Dec. 31, 2015
Lines of Credit [Member]
Sep. 30, 2016
Bank Overdrafts [Member]
Dec. 31, 2015
Bank Overdrafts [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Carrying amount of debt
 
 
$ 406,410,000 
$ 379,700,000 
 
$ 100,000,000 
 
$ 0 
 
 
 
 
$ 100,000,000 
$ 100,000,000 
 
 
 
 
 
 
 
Borrowings under lines of credit and overdrafts
13,200,000 
22,680,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
13,200,000 
22,500,000 
0 
180,000 
Stated interest rate
 
 
 
 
 
 
1.62% 
1.50% 
 
 
 
 
 
 
3.97% 
 
 
 
 
 
 
Converted amount with accrued interest
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100,000,000 
 
 
 
 
 
 
Percent allowed to be prepaid
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.00% 
 
 
 
 
 
 
Line of credit facility, maximum borrowing capacity
 
 
 
 
750,000,000 
 
 
 
 
 
 
 
 
 
 
 
500,000,000 
56,000,000 
 
 
 
Line of credit facility with accordian feature, maximum borrowing capacity
 
 
 
 
1,000,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Variable basis spread
 
 
 
 
 
 
 
 
1.10% 
1.70% 
 
 
 
 
 
 
 
 
 
 
 
Remaining borrowing capacity
 
 
$ 343,590,000 
$ 370,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt covenant ratio of senior debt to EBITDA
 
 
 
 
 
 
 
 
 
 
 
3.25 
 
 
 
3.50 
 
 
 
 
 
Debt covenant ratio of total debt to EBITDA
 
 
 
 
 
 
 
 
 
 
 
4.00 
 
 
 
4.25 
 
 
 
 
 
Debt covenant ratio of EBITDA to cash interest expense
 
 
 
 
 
 
 
 
 
 
4.25 
 
 
 
 
 
 
 
 
 
 
Line of credit, interest rate at period end
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.38% 
1.56% 
 
 
Repayment period
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2 days 
 
Derivatives (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract]
 
 
Derivative Assets
$ 74 
$ 699 
Derivative Liabilities
(926)
(458)
Designated as Hedging Instrument [Member] |
Interest Rate Contract [Member]
 
 
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract]
 
 
Derivative Assets
0 
0 
Derivative Liabilities
(238)
(357)
Designated as Hedging Instrument [Member] |
Foreign Exchange Contract [Member]
 
 
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract]
 
 
Derivative Assets
0 
484 
Derivative Liabilities
(355)
0 
Not Designated as Hedging Instrument [Member] |
Foreign Exchange Contract [Member]
 
 
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract]
 
 
Derivative Assets
74 
215 
Derivative Liabilities
$ (333)
$ (101)
Derivatives (Details 1) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Foreign Exchange Contract [Member]
Sep. 30, 2016
Designated as Hedging Instrument [Member]
Cash Flow Hedging [Member]
Sep. 30, 2015
Designated as Hedging Instrument [Member]
Cash Flow Hedging [Member]
Sep. 30, 2016
Designated as Hedging Instrument [Member]
Cash Flow Hedging [Member]
Sep. 30, 2015
Designated as Hedging Instrument [Member]
Cash Flow Hedging [Member]
Sep. 30, 2016
Designated as Hedging Instrument [Member]
Cash Flow Hedging [Member]
Interest Rate Contract [Member]
Sep. 30, 2015
Designated as Hedging Instrument [Member]
Cash Flow Hedging [Member]
Interest Rate Contract [Member]
Sep. 30, 2016
Designated as Hedging Instrument [Member]
Cash Flow Hedging [Member]
Interest Rate Contract [Member]
Sep. 30, 2015
Designated as Hedging Instrument [Member]
Cash Flow Hedging [Member]
Interest Rate Contract [Member]
Sep. 30, 2016
Designated as Hedging Instrument [Member]
Cash Flow Hedging [Member]
Foreign Exchange Contract [Member]
Sep. 30, 2015
Designated as Hedging Instrument [Member]
Cash Flow Hedging [Member]
Foreign Exchange Contract [Member]
Sep. 30, 2016
Designated as Hedging Instrument [Member]
Cash Flow Hedging [Member]
Foreign Exchange Contract [Member]
Sep. 30, 2015
Designated as Hedging Instrument [Member]
Cash Flow Hedging [Member]
Foreign Exchange Contract [Member]
Sep. 30, 2016
Not Designated as Hedging Instrument [Member]
Foreign Exchange Contract [Member]
Sep. 30, 2015
Not Designated as Hedging Instrument [Member]
Foreign Exchange Contract [Member]
Sep. 30, 2016
Not Designated as Hedging Instrument [Member]
Foreign Exchange Contract [Member]
Sep. 30, 2015
Not Designated as Hedging Instrument [Member]
Foreign Exchange Contract [Member]
Dec. 31, 2012
Interest Rate Swap [Member]
Designated as Hedging Instrument [Member]
Cash Flow Hedging [Member]
Bank
Dec. 31, 2012
one-month LIBOR [Member]
Interest Rate Swap [Member]
Designated as Hedging Instrument [Member]
Cash Flow Hedging [Member]
Derivative [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Term of interest rate derivatives
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5 years 
 
Number of banks transacted with for interest rate swap agreements (in banks)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3 
 
Derivative amount of hedge
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 100,000 
 
Fixed interest rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.03% 
Maximum remaining maturity of foreign currency derivatives
 
 
2 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative, Net Hedge Ineffectiveness Gain (Loss)
0 
0 
0 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net
 
 
 
 
 
(150)
(174)
(580)
127 
137 
(151)
74 
(320)
(287)
(23)
(654)
447 
 
 
 
 
 
 
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(3,755)
(2,431)
(7,506)
4,514 
 
 
Net cash losses from settlement
 
 
$ 3,406 
$ 6,341 
$ 3,822 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value Measurements (Details) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2016
Dec. 31, 2015
Sep. 30, 2016
Quoted Prices in Active Markets for Identical Assets (Level 1)
Dec. 31, 2015
Quoted Prices in Active Markets for Identical Assets (Level 1)
Sep. 30, 2016
Significant Other Observable Inputs (Level 2)
Dec. 31, 2015
Significant Other Observable Inputs (Level 2)
Sep. 30, 2016
Significant Unobservable Inputs (Level 3)
Dec. 31, 2015
Significant Unobservable Inputs (Level 3)
Sep. 30, 2016
Estimate of Fair Value, Fair Value Disclosure [Member]
Dec. 31, 2015
Estimate of Fair Value, Fair Value Disclosure [Member]
Sep. 30, 2016
Minimum [Member]
Sep. 30, 2016
Maximum [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Asset derivatives
$ 74 
$ 699 
$ 0 
$ 0 
$ 74 
$ 699 
$ 0 
$ 0 
$ 74 
$ 699 
 
 
Liability derivatives
(926)
(458)
0 
0 
(926)
(458)
0 
0 
(926)
(458)
 
 
Bank acceptances
 
 
0 
0 
9,946 
10,823 
0 
0 
9,946 
10,823 
 
 
Rabbi trust assets
 
 
2,187 
2,159 
0 
0 
0 
0 
2,187 
2,159 
 
 
Financial assets and financial liabilities, reported at fair value
 
 
$ 2,187 
$ 2,159 
$ 9,094 
$ 11,064 
$ 0 
$ 0 
$ 11,281 
$ 13,223 
 
 
Maturity of bank acceptances
 
 
 
 
 
 
 
 
 
 
3 months 
6 months 
Pension and Other Postretirement Benefits (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 1 Months Ended
Sep. 30, 2016
Pensions [Member]
Sep. 30, 2015
Pensions [Member]
Sep. 30, 2016
Pensions [Member]
Sep. 30, 2015
Pensions [Member]
Sep. 30, 2016
Other Postretirement Benefits [Member]
Sep. 30, 2015
Other Postretirement Benefits [Member]
Sep. 30, 2016
Other Postretirement Benefits [Member]
Sep. 30, 2015
Other Postretirement Benefits [Member]
Mar. 31, 2016
United States Pension Plan of US Entity [Member]
Pension and other postretirement benefits expenses
 
 
 
 
 
 
 
 
 
Service cost
$ 1,354 
$ 1,374 
$ 4,056 
$ 4,126 
$ 31 
$ 36 
$ 92 
$ 109 
 
Interest cost
4,869 
4,976 
14,650 
14,968 
440 
459 
1,324 
1,377 
 
Expected return on plan assets
(7,564)
(8,048)
(22,774)
(24,207)
 
 
 
 
 
Amortization of prior service cost (credit)
52 
76 
157 
231 
(93)
(141)
(280)
(423)
 
Amortization of actuarial losses
2,697 
3,730 
8,109 
11,215 
134 
253 
401 
758 
 
Net periodic benefit cost
1,408 
2,108 
4,198 
6,333 
512 
607 
1,537 
1,821 
 
Discretionary contributions
 
 
 
 
 
 
 
 
$ 15,000 
Income Taxes (Details)
9 Months Ended 12 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Dec. 31, 2015
Income Tax Disclosure [Abstract]
 
 
 
Effective tax rate
25.10% 
25.70% 
23.20% 
Changes in Accumulated Other Comprehensive Income (Loss) by Component (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward]
 
 
 
 
Accumulated other comprehensive income (loss), Beginning balance
 
 
$ (143,252)
$ (99,453)
Other comprehensive (loss) income before reclassifications to consolidated statements of income
 
 
1,560 
(38,100)
Amounts reclassified from accumulated other comprehensive income to the consolidated statements of income
 
 
5,700 
8,423 
Net current-period other comprehensive income (loss)
2,882 
(19,304)
7,260 
(29,677)
Accumulated other comprehensive income (loss), Ending balance
(135,992)
(129,130)
(135,992)
(129,130)
Gains and Losses on Cash Flow Hedges
 
 
 
 
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward]
 
 
 
 
Accumulated other comprehensive income (loss), Beginning balance
 
 
115 
(732)
Other comprehensive (loss) income before reclassifications to consolidated statements of income
 
 
(823)
(665)
Amounts reclassified from accumulated other comprehensive income to the consolidated statements of income
 
 
243 
792 
Net current-period other comprehensive income (loss)
 
 
(580)
127 
Accumulated other comprehensive income (loss), Ending balance
(465)
(605)
(465)
(605)
Pension and Other Postretirement Benefit Items
 
 
 
 
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward]
 
 
 
 
Accumulated other comprehensive income (loss), Beginning balance
 
 
(105,703)
(115,289)
Other comprehensive (loss) income before reclassifications to consolidated statements of income
 
 
283 
1,412 
Amounts reclassified from accumulated other comprehensive income to the consolidated statements of income
 
 
5,457 
7,631 
Net current-period other comprehensive income (loss)
 
 
5,740 
9,043 
Accumulated other comprehensive income (loss), Ending balance
(99,963)
(106,246)
(99,963)
(106,246)
Foreign Currency Items
 
 
 
 
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward]
 
 
 
 
Accumulated other comprehensive income (loss), Beginning balance
 
 
(37,664)
16,568 
Other comprehensive (loss) income before reclassifications to consolidated statements of income
 
 
2,100 
(38,847)
Amounts reclassified from accumulated other comprehensive income to the consolidated statements of income
 
 
0 
0 
Net current-period other comprehensive income (loss)
 
 
2,100 
(38,847)
Accumulated other comprehensive income (loss), Ending balance
$ (35,564)
$ (22,279)
$ (35,564)
$ (22,279)
Changes in Accumulated Other Comprehensive Income (Loss) by Component (Details 2) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
Interest expense
$ (3,020)
$ (2,637)
$ (8,826)
$ (7,944)
Net sales
311,561 
291,434 
906,586 
906,949 
Income before income taxes
48,176 
41,655 
131,954 
130,575 
Tax benefit
(11,348)
(7,984)
(33,066)
(33,601)
Total reclassifications in the period
36,828 
33,671 
98,888 
96,974 
Reclassification out of Accumulated Other Comprehensive Income [Member]
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
Total reclassifications in the period
(1,915)
(2,776)
(5,700)
(8,423)
Reclassification out of Accumulated Other Comprehensive Income [Member] |
Gains and Losses on Cash Flow Hedges
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
Income before income taxes
(157)
(351)
(397)
(1,141)
Tax benefit
55 
110 
154 
349 
Income from continuing operations
(102)
(241)
(243)
(792)
Reclassification out of Accumulated Other Comprehensive Income [Member] |
Gains and Losses on Cash Flow Hedges |
Interest Rate Contract [Member]
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
Interest expense
(137)
(214)
(437)
(642)
Reclassification out of Accumulated Other Comprehensive Income [Member] |
Gains and Losses on Cash Flow Hedges |
Foreign Exchange Contract [Member]
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
Net sales
(20)
(137)
40 
(499)
Reclassification out of Accumulated Other Comprehensive Income [Member] |
Pension and Other Postretirement Benefit Items
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
Income before income taxes
(2,790)
(3,918)
(8,387)
(11,781)
Tax benefit
977 
1,383 
2,930 
4,150 
Income from continuing operations
(1,813)
(2,535)
(5,457)
(7,631)
Amortization of prior-service credits, net
41 
65 
123 
192 
Amortization of actuarial losses
$ (2,831)
$ (3,983)
$ (8,510)
$ (11,973)
Information on Business Segments (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Segment
Sep. 30, 2015
Segment Reporting Information [Line Items]
 
 
 
 
Number of reportable segments
 
 
2 
 
Net sales
$ 311,561 
$ 291,434 
$ 906,586 
$ 906,949 
Operating profit
51,817 
43,747 
140,804 
138,291 
Interest expense
3,020 
2,637 
8,826 
7,944 
Other expense (income), net
621 
(545)
24 
(228)
Income before income taxes
48,176 
41,655 
131,954 
130,575 
Aerospace [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
102,816 
102,329 
298,055 
314,910 
Operating profit
16,859 
16,443 
41,359 
50,029 
Industrial [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Number of strategic business units
 
 
3 
 
Net sales
208,748 
189,106 
608,534 
592,044 
Operating profit
34,958 
27,304 
99,445 
88,262 
Intersegment sales [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
$ (3)
$ (1)
$ (3)
$ (5)
Information on Business Segments Details 1 (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Segment Reporting Information [Line Items]
 
 
Assets
$ 2,221,883 
$ 2,061,866 
Aerospace [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Assets
637,232 
654,147 
Industrial [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Assets
1,441,695 
1,241,206 
Other [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Assets
$ 142,956 
$ 166,513 
Commitments and Contingencies (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Dec. 31, 2015
Sep. 30, 2015
Sep. 30, 2016
Loss Contingencies [Line Items]
 
 
 
Assets
$ 2,061,866 
 
$ 2,221,883 
Contract Matters with Triumph [Member]
 
 
 
Loss Contingencies [Line Items]
 
 
 
Charge related to a contract termination dispute
 
2,788 
 
Assets
 
 
8,000 
Damages sought
15,000 
 
12,000 
Triumph Counterclaim [Member]
 
 
 
Loss Contingencies [Line Items]
 
 
 
Damages sought
 
 
$ 23,000 
Accounting Changes (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended 9 Months Ended
Sep. 30, 2016
Mar. 31, 2016
Mar. 31, 2015
Jun. 30, 2016
Jun. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
New Accounting Pronouncement, Early Adoption [Line Items]
 
 
 
 
 
 
 
Net cash provided by operating activities
 
 
 
 
 
$ 160,111 
$ 160,596 
Net cash used by financing activities
 
 
 
 
 
(19,033)
(46,611)
New Accounting Pronouncement, Early Adoption, Effect [Member]
 
 
 
 
 
 
 
New Accounting Pronouncement, Early Adoption [Line Items]
 
 
 
 
 
 
 
Excess tax benefits recognized in provision for income taxes
1,530 
 
 
 
 
1,530 
 
State tax loss carryforwards recognized
195 
 
 
 
 
195 
 
Net cash provided by operating activities
 
413 
1,402 
524 
2,320 
 
7,519 
Net cash used by financing activities
 
413 
1,402 
524 
2,320 
 
7,519 
Deferred tax assets, current
26,072 
 
 
 
 
26,072 
 
Deferred tax liabilities current
$ 1,173 
 
 
 
 
$ 1,173