CURTISS WRIGHT CORP, 10-Q filed on 10/26/2017
Quarterly Report
Document and Entity Information
9 Months Ended
Sep. 30, 2017
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
Sep. 30, 2017 
Document Fiscal Year Focus
2017 
Document Fiscal Period Focus
Q3 
Amendment Flag
false 
Entity common stock shares outstanding
44,129,363 
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 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Net sales
 
 
 
 
Product sales
$ 468,073 
$ 413,905 
$ 1,351,076 
$ 1,244,148 
Service sales
99,828 
93,187 
308,069 
299,218 
Total net sales
567,901 
507,092 
1,659,145 
1,543,366 
Cost of sales
 
 
 
 
Cost of product sales
292,215 
261,488 
878,446 
806,092 
Cost of service sales
64,903 
61,128 
200,371 
195,515 
Total cost of sales
357,118 
322,616 
1,078,817 
1,001,607 
Gross profit
210,783 
184,476 
580,328 
541,759 
Research and development expenses
14,575 
14,071 
45,374 
44,467 
Selling expenses
28,818 
26,273 
86,331 
85,025 
General and administrative expenses
70,840 
67,559 
217,575 
210,342 
Operating income
96,550 
76,573 
231,048 
201,925 
Interest expense
(10,457)
(10,488)
(31,584)
(30,694)
Other income, net
321 
483 
823 
818 
Earnings from continuing operations before income taxes
86,414 
66,568 
200,287 
172,049 
Provision for income taxes
(22,470)
(20,636)
(53,146)
(53,335)
Net earnings
$ 63,944 
$ 45,932 
$ 147,141 
$ 118,714 
Basic earnings per share
 
 
 
 
Basic earnings per share (usd per share)
$ 1.45 
$ 1.04 
$ 3.33 
$ 2.67 
Diluted earnings per share
 
 
 
 
Diluted earnings per share (usd per share)
$ 1.43 
$ 1.02 
$ 3.29 
$ 2.63 
Dividends per share
$ 0.15 
$ 0.13 
$ 0.41 
$ 0.39 
Weighted average shares outstanding:
 
 
 
 
Basic (shares)
44,137 
44,323 
44,196 
44,457 
Diluted (shares)
44,686 
44,997 
44,782 
45,128 
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
 
 
 
 
Net earnings
$ 63,944 
$ 45,932 
$ 147,141 
$ 118,714 
Other comprehensive income
 
 
 
 
Foreign currency translation, net of tax
25,393 1
(12,366)1
69,294 1
(26,907)1
Pension and postretirement adjustments, net of tax
1,280 2
1,634 2
4,974 2
4,766 2
Other comprehensive income (loss), net of tax
26,673 
(10,732)
74,268 
(22,141)
Comprehensive income
$ 90,617 
$ 35,200 
$ 221,409 
$ 96,573 
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parentheticals) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
 
 
 
 
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax
$ 0.4 
$ (0.7)
$ 1.6 
$ (1.0)
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax, Attributable to Parent
$ 0.8 
$ 0.9 
$ 3.3 
$ 3.0 
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2017
Dec. 31, 2016
Current Assets:
 
 
Cash and cash equivalents
$ 432,191 
$ 553,848 
Receivables, net
515,966 
463,062 
Inventories, net
397,270 
366,974 
Other current assets
43,852 
30,927 
Total current assets
1,389,279 
1,414,811 
Property, plant, and equipment, net
387,699 
388,903 
Goodwill
1,089,781 
951,057 
Other intangible assets, net
338,957 
271,461 
Other assets
15,508 
11,549 
Total assets
3,221,224 
3,037,781 
Current liabilities:
 
 
Current portion of long-term debt and short-term debt
150,408 
150,668 
Accounts payable
150,751 
177,911 
Accrued expenses
131,357 
130,239 
Income taxes payable
9,988 
18,274 
Deferred revenue
189,788 
170,143 
Other current liabilities
36,946 
28,027 
Total current liabilities
669,238 
675,262 
Long-term debt
814,400 
815,630 
Deferred tax liabilities, net
57,918 
49,722 
Accrued pension and other postretirement benefit costs
101,827 
107,151 
Long-term portion of environmental reserves
14,956 
14,024 
Other liabilities
88,409 
84,801 
Total liabilities
1,746,748 
1,746,590 
Stockholders' Equity
 
 
Common stock, $1 par value,100,000,000 shares authorized at September 30, 2017 and December 31, 2016; 49,187,378 shares issued at September 30, 2017 and December 31, 2016; outstanding shares were 44,129,363 at September 30, 2017 and 44,181,050 at December 31, 2016
49,187 
49,187 
Additional paid in capital
123,573 
129,483 
Retained earnings
1,883,185 
1,754,907 
Accumulated other comprehensive loss
(217,488)
(291,756)
Common treasury stock, at cost (5,058,015 shares at September 30, 2017 and 5,006,328 shares at December 31, 2016)
(363,981)
(350,630)
Total stockholders' equity
1,474,476 
1,291,191 
Total liabilities and stockholders' equity
$ 3,221,224 
$ 3,037,781 
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
Sep. 30, 2017
Dec. 31, 2016
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
49,187,378 
49,187,378 
Common Stock, Shares, Outstanding
44,129,363 
44,181,050 
Treasury Stock, Shares
5,058,015 
5,006,328 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Cash flows from operating activities:
 
 
Net earnings
$ 147,141 
$ 118,714 
Adjustments to reconcile net earnings to net cash provided by operating activities
 
 
Depreciation and amortization
74,815 
72,419 
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax
(1,011)
(845)
Gain on fixed asset disposals
(225)
(194)
Deferred income taxes
(1,321)
(6,388)
Share-based compensation
9,173 
7,813 
Change in operating assets and liabilities, net of businesses acquired and divested:
 
 
Accounts receivable, net
(38,204)
95,200 
Inventories, net
(892)
(18,613)
Progress payments
325 
4,094 
Accounts payable and accrued expenses
(42,662)
(58,162)
Deferred revenue
16,772 
14,937 
Income taxes payable
(11,358)
8,936 
Net pension and postretirement liabilities
4,115 
2,723 
Other Operating Activities, Cash Flow Statement
0 
20,405 
Other current and long-term assets and liabilities
5,639 
6,173 
Net cash provided by operating activities
162,307 
267,212 
Cash flows from investing activities:
 
 
Proceeds from sales and disposals of long lived assets
1,790 
1,204 
Proceeds from Divestiture of Businesses
6,162 
1,027 
Additions to property, plant, and equipment
(34,874)
(26,127)
Purchase Price, Net of Cash Acquired
232,630 
295 
Net cash used for investing activities
(259,552)
(24,191)
Cash flows from financing activities:
 
 
Borrowings under revolving credit facility
4,884 
7,504 
Payments of revolving credit facility
(5,144)
(7,961)
Repurchases of common stock
(38,939)
(80,296)
Proceeds from share-based compensation
11,854 
18,359 
Dividends paid
(11,497)
(11,576)
Excess tax benefits from share-based compensation plans
0 
6,771 
Proceeds from (Payments for) Other Financing Activities
(512)
(469)
Net cash used for financing activities
(39,354)
(67,668)
Effect of exchange-rate changes on cash
14,942 
(11,997)
Net increase (decrease) in cash and cash equivalents
(121,657)
163,356 
Cash and cash equivalents at beginning of period
553,848 
288,697 
Cash and cash equivalents at end of period
432,191 
452,053 
Supplemental disclosure of non-cash activities:
 
 
Capital expenditures incurred but not yet paid
$ 756 
$ 688 
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) (USD $)
In Thousands, unless otherwise specified
Total
Common Stock Member
Additional Paid In Capital Member
Retained Earnings Member
Accumulated Other Comprehensive Loss Member
Treasury Stock Member
Beginning Balance at Dec. 31, 2015
 
$ 49,190 
$ 144,923 
$ 1,590,645 
$ (225,928)
$ (303,407)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
Net earnings
 
 
 
187,329 
 
 
Other comprehensive loss, net of tax
(65,828)
 
 
 
(65,828)
 
Dividends paid/declared
 
 
 
(23,067)
 
 
Restricted stock
 
 
(12,086)
 
 
17,275 
Stock options exercised
 
 
(11,271)
 
 
39,483 
Other
 
3 
(1,104)
 
 
811 
Share-based compensation
 
 
9,021 
 
 
457 
Repurchases of common stock
 
 
 
 
 
(105,249)
Ending Balance at Dec. 31, 2016
1,291,191 
49,187 
129,483 
1,754,907 
(291,756)
(350,630)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
Net earnings
147,141 
 
 
147,141 
 
 
Other comprehensive loss, net of tax
74,268 
 
 
 
74,268 
 
Dividends paid/declared
 
 
 
(18,124)
 
 
Restricted stock
 
 
(9,624)
 
 
9,618 
Stock options exercised
 
 
(2,995)
 
 
14,855 
Other
 
 
(2,099)
(739)
 
750 
Share-based compensation
 
 
8,808 
 
 
365 
Repurchases of common stock
 
 
 
 
 
(38,939)
Ending Balance at Sep. 30, 2017
$ 1,474,476 
$ 49,187 
$ 123,573 
$ 1,883,185 
$ (217,488)
$ (363,981)
BASIS OF PRESENTATION
BASIS OF PRESENTATION
BASIS OF PRESENTATION

Curtiss-Wright Corporation and its subsidiaries (the "Corporation" or the "Company") is a diversified multinational manufacturing and service company that designs, manufactures, and overhauls precision components and provides highly engineered products and services to the aerospace, defense, power generation, and general industrial 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 pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in annual financial statements have been condensed or omitted as permitted by such rules and regulations. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments necessary for a fair presentation of these financial statements.

Management is required to make estimates and judgments that affect the reported amount of assets, liabilities, revenue, and expenses and disclosure of contingent assets and liabilities in the accompanying financial statements. Actual results may differ from these estimates. The most significant of these estimates includes the estimate of costs to complete long-term contracts under the percentage-of-completion accounting methods, the estimate of useful lives for property, plant, and equipment, cash flow estimates used for testing the recoverability of assets, pension plan and postretirement obligation assumptions, estimates for inventory obsolescence, estimates for the valuation and useful lives of intangible assets, legal reserves, and the estimate of future environmental costs. Changes in estimates of contract sales, costs, and profits are recognized using the cumulative catch-up method of accounting. This method recognizes in the current period the cumulative effect of the changes on current and prior periods. Accordingly, the effect of the changes on future periods of contract performance is recognized as if the revised estimate had been the original estimate. During the three and nine months ended September 30, 2017 and 2016, 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 2016 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.

Recent accounting pronouncements adopted
Standard
Description
Effect on the condensed consolidated financial statements
ASU 2017-04 Simplifying the Test for Goodwill Impairment
In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which simplifies the measurement of goodwill impairment testing by removing step two. This guidance was early adopted effective January 1, 2017 and will be applied prospectively.

The adoption of this standard does not have a financial impact on the Condensed Consolidated Financial Statements.
Date of adoption: January 1, 2017
ASU 2016-09 Improvements to Employee Share-Based Payment Accounting
In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes and forfeitures. Excess tax benefits previously reported as cash flows from financing activities in the Condensed Consolidated Financial Statements are now required to be reported as operating activities. The Company adopted this guidance effective January 1, 2017.
The Corporation recorded an income tax benefit of approximately $5 million within the provision for income taxes for the nine months ended September 30, 2017 related to the excess tax benefit on stock options and performance share units. Prior to adoption, this amount would have been recorded as an increase to additional paid-in capital.

The Corporation elected to account for forfeitures as they occur, which did not have a material impact on its Condensed Consolidated Financial Statements.

Date of adoption: January 1, 2017


Recent accounting pronouncements to be adopted
Standard
Description
Effect on the condensed consolidated financial statements
ASU 2014-09 Revenue from Contracts with Customers
In May 2014, the FASB issued a comprehensive new revenue recognition standard which will supersede previous existing revenue recognition guidance. The standard creates a five-step model for revenue recognition that requires companies to exercise judgment when considering contract terms and relevant facts and circumstances. The five-step model includes (1) identifying the contract, (2) identifying the separate performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations and (5) recognizing revenue when each performance obligation has been satisfied. The standard also requires expanded disclosures surrounding revenue recognition. The standard is effective for fiscal periods beginning after December 15, 2017 and allows for either full retrospective or modified retrospective adoption.
The Corporation plans to apply the modified retrospective approach upon adoption and is currently evaluating the impact of adoption on its Condensed Consolidated Financial Statements as of January 1, 2018. While its assessment is ongoing and not yet complete, the Corporation anticipates certain contracts currently accounted for on a “point in time” basis will be required to transition to an “over-time” model as they meet one or more of the mandatory criteria established under the new standard. The Corporation expects the transition adjustment to primarily include the following: a) U.S. Government and commercial contracts where such promised goods do not have alternative use and the Corporation has an enforceable right to payment for performance completed to date; b) repair and overhaul services performed on customer-owned goods; and c) Defense-related contracts where the Corporation uses customer-furnished materials in production. We are in the process of implementing appropriate changes to our business processes, systems, and controls to support recognition and disclosure under the new standard. The Corporation will continue to monitor interpretative guidance issued by the FASB which may cause its evaluation to change.



Date of adoption: January 1, 2018
ASU 2016-02 Leases
In February 2016, the FASB issued final guidance that will require lessees to put most leases on their balance sheets but recognize expenses on their income statements in a manner similar to today’s accounting. The guidance requires the use of a modified retrospective approach.
The Corporation is currently evaluating the impact of the adoption of this standard on its Condensed Consolidated Financial Statements.
Date of adoption: January 1, 2019
ASU 2017-01
Clarifying the Definition of a Business

In January 2017, the FASB issued ASU 2017-01, which clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The standard introduces a screen for determining when assets acquired are not a business and clarifies that a business must include, at a minimum, an input and a substantive process that contribute to an output. The standard is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years.


The Corporation does not expect the adoption of this standard to have a material impact on its Condensed Consolidated Financial Statements.
Date of adoption: January 1, 2018
ASU 2017-07
Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost


In March 2017, the FASB issued final guidance that requires the service cost component of net periodic benefit costs from defined benefit and other postretirement benefit plans be included in the same Consolidated Statement of Earnings captions as other compensation costs arising from services rendered by the covered employees during the period. The other components of net benefit cost will be presented in the Statement of Earnings separately from service costs. This standard is effective for fiscal years beginning after December 15, 2017.  Following adoption, only service costs will be eligible for capitalization into manufactured inventories.  The amendments of this standard should be applied retrospectively for the presentation of the service cost component and the other components of net periodic benefit costs.

The Corporation is currently evaluating the impact of the adoption of this standard on its Condensed Consolidated Financial Statements.
Date of adoption: January 1, 2018
ACQUISITIONS
ACQUISITIONS
2.           ACQUISITIONS

The Corporation continually 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. Only items identified as of the acquisition date are considered for subsequent adjustment.  The Corporation will make appropriate adjustments to the purchase price allocation prior to completion of the measurement period, as required.

During the nine months ended September 30, 2017, the Corporation acquired two businesses for an aggregate purchase price of $233 million, which are described in more detail below. No acquisitions were made during the nine months ended September 30, 2016.

The Condensed Consolidated Statement of Earnings includes $45 million of total net sales and $1 million of net losses from the Corporation's 2017 acquisitions.

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition for all acquisitions consummated during the nine months ended September 30, 2017.

(In thousands)
 
2017
Accounts receivable
 
$
5,006

Inventory
 
22,702

Property, plant, and equipment
 
4,598

Other current and non-current assets
 
2,815

Intangible assets
 
88,900

Current and non-current liabilities
 
(6,672
)
Due to seller
 
(596
)
Net tangible and intangible assets
 
116,753

Purchase price, net of cash acquired
 
232,630

Goodwill
 
$
115,877

 
 
 
Goodwill deductible for tax purposes
 
$
115,877



2017 Acquisitions

Teletronics Technology Corporation (TTC)

On January 3, 2017, the Corporation acquired 100% of the issued and outstanding capital stock of TTC for $226.0 million, 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 in escrow as security for potential indemnification claims against the seller. TTC is a designer and manufacturer of high-technology data acquisition and comprehensive flight test instrumentation systems for critical aerospace and defense applications. For the year ended December 31, 2016, TTC generated sales of $64 million. The acquired business operates within the Defense segment.

Para Tech Coating, Inc. (Para Tech)

On February 8, 2017, the Corporation acquired certain assets and assumed certain liabilities of Para Tech for $6.6 million in cash. The Asset Purchase Agreement contains a purchase price adjustment mechanism and representations and warranties customary for a transaction of this type, including a portion of the purchase price held back as security for potential indemnification claims against the seller. Para Tech is a provider of parylene conformal coating services for aerospace & defense electronic components as well as critical medical devices. The acquired business operates within the Commercial/Industrial segment.
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)
September 30, 2017
 
December 31, 2016
Billed receivables:
 
 
 
Trade and other receivables
$
367,631

 
$
340,091

Less: Allowance for doubtful accounts
(7,306
)
 
(4,832
)
Net billed receivables
360,325

 
335,259

Unbilled receivables:
 
 
 
Recoverable costs and estimated earnings not billed
178,479

 
149,847

Less: Progress payments applied
(22,838
)
 
(22,044
)
Net unbilled receivables
155,641

 
127,803

Receivables, net
$
515,966

 
$
463,062

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)
September 30, 2017
 
December 31, 2016
Raw materials
$
189,326

 
$
189,228

Work-in-process
85,636

 
73,843

Finished goods
127,647

 
112,478

Inventoried costs related to U.S. Government and other long-term contracts
61,587

 
57,516

Gross inventories
464,196

 
433,065

Less:  Inventory reserves
(55,240
)
 
(54,988
)
Progress payments applied, principally related to long-term contracts
(11,686
)
 
(11,103
)
Inventories, net
$
397,270

 
$
366,974



Inventoried costs related to long-term contracts include capitalized contract development costs related to certain aerospace and defense programs of $30.4 million and $28.8 million, as of September 30, 2017 and December 31, 2016, respectively. These capitalized costs will be liquidated as production units are delivered to the customers.  As of September 30, 2017 and December 31, 2016, $4.1 million and $3.9 million, respectively, are scheduled to be liquidated under existing firm orders.
GOODWILL
GOODWILL
GOODWILL

The changes in the carrying amount of goodwill for the nine months ended September 30, 2017 are as follows:
(In thousands)
Commercial/Industrial
 
Defense
 
Power
 
Consolidated
December 31, 2016
$
436,141

 
$
327,655

 
$
187,261

 
$
951,057

Acquisitions
2,608

 
113,269

 
—

 
115,877

Divestitures
(1,168
)
 
(648
)
 
—

 
(1,816
)
Foreign currency translation adjustment
9,963

 
14,469

 
231

 
24,663

September 30, 2017
$
447,544

 
$
454,745

 
$
187,492

 
$
1,089,781

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:
 
 
September 30, 2017
 
December 31, 2016
(In thousands)
 
Gross
 
Accumulated Amortization
 
Net
 
Gross
 
Accumulated Amortization
 
Net
Technology
 
$
243,216

 
$
(110,441
)
 
$
132,775

 
$
166,859

 
$
(98,266
)
 
$
68,593

Customer related intangibles
 
366,910

 
(175,251
)
 
191,659

 
349,742

 
(157,154
)
 
192,588

Other intangible assets
 
40,613

 
(26,090
)
 
14,523

 
36,709

 
(26,429
)
 
10,280

Total
 
$
650,739

 
$
(311,782
)
 
$
338,957

 
$
553,310

 
$
(281,849
)
 
$
271,461

 
 
 
 
 
 
 
 
 
 
 
 
 

During the nine months ended September 30, 2017, the Corporation acquired intangible assets of $88.9 million. The Corporation acquired Technology of $73.0 million, Customer related intangibles of $12.9 million, and Other intangible assets of $3.0 million, which have a weighted average amortization period of 15.0 years, 16.3 years, and 7.0 years, respectively.

Total intangible amortization expense for the nine months ended September 30, 2017 was $28.8 million as compared to $24.9 million in the prior year period.  The estimated amortization expense for the five years ending December 31, 2017 through 2021 is $38.8 million, $37.7 million, $36.0 million, $34.1 million, and $32.3 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. The Corporation’s foreign exchange contracts and interest rate swaps are considered Level 2 instruments which are based on market based inputs or unobservable inputs and corroborated by market data such as quoted prices, interest rates, or yield curves.

Effects on Consolidated Balance Sheets

As of September 30, 2017 and December 31, 2016, the fair values of the asset and liability derivative instruments are immaterial.

Effects on Condensed Consolidated Statements of Earnings
 
Undesignated hedges

The location and amount of losses or (gains) recognized in income on forward exchange derivative contracts not designated for hedge accounting for the three and nine months ended September 30, were as follows:
 
 
Three Months Ended
 
Nine Months Ended
(In thousands)
 
September 30,
 
September 30,
Derivatives not designated as hedging instrument
 
2017
 
2016
 
2017
 
2016
Forward exchange contracts:
 
 
 
 
 
 
 
 
General and administrative expenses
 
$
(2,282
)
 
$
3,596

 
$
(1,668
)
 
$
8,632



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 September 30, 2017.  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.

 
September 30, 2017
 
December 31, 2016
(In thousands)
Carrying Value
 
Estimated Fair Value
 
Carrying Value
 
Estimated Fair Value
5.51% Senior notes due 2017
150,000

 
150,888

 
150,000

 
154,509

3.84% Senior notes due 2021
100,000

 
103,949

 
100,000

 
102,463

3.70% Senior notes due 2023
225,000

 
232,186

 
225,000

 
226,946

3.85% Senior notes due 2025
100,000

 
103,517

 
100,000

 
100,338

4.24% Senior notes due 2026
200,000

 
211,242

 
200,000

 
203,592

4.05% Senior notes due 2028
75,000

 
77,751

 
75,000

 
74,630

4.11% Senior notes due 2028
100,000

 
104,235

 
100,000

 
99,876

Other debt
408

 
408

 
668

 
668

Total debt
950,408

 
984,176

 
950,668

 
963,022

Debt issuance costs, net
(869
)
 
(869
)
 
(984
)
 
(984
)
Unamortized interest rate swap proceeds
15,269

 
15,269

 
16,614

 
16,614

Total debt, net
$
964,808

 
$
998,576

 
$
966,298

 
$
978,652

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 2016 Annual Report on Form 10-K.  

Pension Plans

The components of net periodic pension cost for the three and nine months ended September 30, 2017 and 2016 were as follows:

 
Three Months Ended
 
Nine Months Ended
(In thousands)
September 30,
 
September 30,
 
2017
 
2016
 
2017
 
2016
Service cost
$
5,874

 
$
6,347

 
$
18,819

 
$
18,832

Interest cost
6,951

 
7,503

 
19,406

 
22,915

Expected return on plan assets
(13,549
)
 
(13,462
)
 
(40,144
)
 
(40,633
)
Amortization of prior service cost
(24
)
 
(11
)
 
(75
)
 
(34
)
Amortization of unrecognized actuarial loss
2,525

 
2,837

 
9,691

 
9,023

Net periodic benefit cost
$
1,777


$
3,214


$
7,697


$
10,103



During the nine months ended September 30, 2017, the Corporation made no contributions to the Curtiss-Wright Pension Plan, and does not expect to make any contributions in 2017. Contributions to the foreign benefit plans are not expected to be material in 2017.

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 nine months ended September 30, 2017 and 2016, the expense relating to the plan was $10.0 million and $8.9 million, respectively. The Corporation made $10.9 million in contributions to the plan during the nine months ended September 30, 2017, and expects to make total contributions of $11.8 million in 2017.
EARNINGS PER SHARE
EARNINGS PER SHARE
EARNINGS PER SHARE
 
Diluted earnings per share were computed based on the weighted-average number of shares outstanding plus all potentially dilutive common shares.  A reconciliation of basic to diluted shares used in the earnings per share calculation is as follows:
 
 
Three Months Ended
 
Nine Months Ended
(In thousands)
September 30,
 
September 30,
 
2017
 
2016
 
2017
 
2016
Basic weighted-average shares outstanding
44,137

 
44,323

 
44,196

 
44,457

Dilutive effect of stock options and deferred stock compensation
549

 
674

 
586

 
671

Diluted weighted-average shares outstanding
44,686

 
44,997

 
44,782

 
45,128



For the three months and nine months ended September 30, 2017, approximately 38,000 shares issuable under equity-based awards were excluded from the calculation of diluted earnings per share as they were anti-dilutive based on the average stock price during the period. For the three and nine months ended September 30, 2016, there were no anti-dilutive equity-based awards.
SEGMENT INFORMATION
SEGMENT INFORMATION
SEGMENT INFORMATION
 
The Corporation manages and evaluates its operations based on end markets to strengthen its ability to service customers and recognize certain organizational efficiencies. Based on this approach, the Corporation has three reportable segments: Commercial/Industrial, Defense, and Power.

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 as they are not considered in the segments’ performance evaluation by the Corporation’s chief operating decision-maker, its Chief Executive Officer.
Net sales and operating income by reportable segment were as follows:
 
Three Months Ended
 
Nine Months Ended
(In thousands)
September 30,
 
September 30,
 
2017
 
2016
 
2017
 
2016
Net sales
 
 
 
 
 
 
 
Commercial/Industrial
$
294,158

 
$
276,179

 
$
865,070

 
$
841,812

Defense
142,681

 
114,946

 
384,917

 
335,553

Power
132,102

 
117,929

 
412,667

 
370,798

Less: Intersegment revenues
(1,040
)
 
(1,962
)
 
(3,509
)
 
(4,797
)
Total consolidated
$
567,901

 
$
507,092

 
$
1,659,145

 
$
1,543,366

 
 
 
 
 
 
 
 
Operating income (expense)
 
 
 
 
 
 
 
Commercial/Industrial
$
46,774

 
$
39,067

 
$
121,088

 
$
108,076

Defense
33,636

 
28,822

 
65,978

 
64,276

Power
19,486

 
14,130

 
60,896

 
44,872

Corporate and eliminations (1)
(3,346
)
 
(5,446
)
 
(16,914
)
 
(15,299
)
Total consolidated
$
96,550

 
$
76,573

 
$
231,048

 
$
201,925


(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 are as follows:

 
Three Months Ended
 
Nine Months Ended
(In thousands)
September 30,
 
September 30,
 
2017
 
2016
 
2017
 
2016
Total operating income
$
96,550

 
$
76,573

 
$
231,048

 
$
201,925

Interest expense
10,457

 
10,488

 
31,584

 
30,694

Other income, net
321

 
483

 
823

 
818

Earnings before income taxes
$
86,414

 
$
66,568

 
$
200,287

 
$
172,049



(In thousands)
September 30, 2017
 
December 31, 2016
Identifiable assets
 
 
 
Commercial/Industrial
$
1,443,206

 
$
1,391,040

Defense
1,051,580

 
751,859

Power
502,553

 
516,321

Corporate and Other
223,885

 
378,561

Total consolidated
$
3,221,224

 
$
3,037,781

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
 
The cumulative balance of each component of accumulated other comprehensive income (AOCI), net of tax, is as follows:
 
(In thousands)
Foreign currency translation adjustments, net
 
Total pension and postretirement adjustments, net
 
Accumulated other comprehensive income (loss)
December 31, 2015
$
(107,810
)
 
$
(118,118
)
 
$
(225,928
)
Other comprehensive income (loss) before reclassifications
(64,840
)
 
(7,892
)
 
(72,732
)
Amounts reclassified from accumulated other comprehensive loss
—

 
6,904

 
6,904

Net current period other comprehensive loss
(64,840
)
 
(988
)
 
(65,828
)
December 31, 2016
$
(172,650
)
 
$
(119,106
)
 
$
(291,756
)
Other comprehensive income (loss) before reclassifications
69,294

 
(669
)
 
68,625

Amounts reclassified from accumulated other comprehensive income (loss)
—

 
5,643

 
5,643

Net current period other comprehensive income
69,294

 
4,974

 
74,268

September 30, 2017
$
(103,356
)
 
$
(114,132
)
 
$
(217,488
)



Details of amounts reclassified from accumulated other comprehensive income (loss) are below:
 
(In thousands)
Amount reclassified from AOCI
 
Affected line item in the statement where net earnings is presented
Defined benefit pension and other postretirement benefit plans
 
 
 
Amortization of prior service costs
568

 
(1)
Amortization of actuarial losses
(9,525
)
 
(1)
 
(8,957
)
 
Total before tax
 
3,314

 
Income tax
Total reclassifications
$
(5,643
)
 
Net of tax


(1)
These items are included in the computation of net periodic benefit 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 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. In October 2017, all parties agreed in principle to participate in a formal mediation in late 2018 with the intention of settling this claim. 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.

Westinghouse Bankruptcy

On March 29, 2017, Westinghouse Electric Company (“WEC”) filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Southern District of New York, Case No. 17-10751.  The Bankruptcy Court overseeing the Bankruptcy Case has approved, on an interim basis, an $800 million Debtor-in-Possession Financing Facility to help WEC finance its business operations during the reorganization process. The Corporation had approximately $6.5 million in pre-petition billings outstanding with WEC as of September 30, 2017. The Corporation will continue, for the time being and while it monitors and evaluates the Bankruptcy Case, to honor its executory contracts and expects to collect all amounts due from post-petition work.  At this time, the Corporation has assessed that any pre-petition amounts will be substantially recoverable and does not believe that rejection of the outstanding contracts with WEC, taken in part or combined, would have a material adverse impact on the Company’s cash flow or operations.  The Corporation continues to monitor the status of the WEC bankruptcy as well as the status of the plant construction projects for potential impacts on our business.

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. As of September 30, 2017 and December 31, 2016, there were $23.4 million and $47.2 million of stand-by letters of credit outstanding, respectively, and $13.9 million and $12.8 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 $56.0 million surety bond.

AP1000 Program

The Electro-Mechanical Division, which is within the Corporation’s Power segment, 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 September 30, 2017, the Corporation has not met certain contractual delivery dates under its AP 1000 China and US contracts; however there are significant uncertainties as to which parties are responsible for the delays. The Corporation believes it has adequate legal defenses and intends to vigorously defend this matter. Given the uncertainties surrounding the responsibility for the delays, no accrual has been made for this matter as of September 30, 2017.  As of September 30, 2017, the range of possible loss is $0 to $31 million for the AP1000 US contract, for a total range of possible loss of $0 to $55.5 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 provides highly engineered products and services to the aerospace, defense, power generation, and general industrial 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 pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in annual financial statements have been condensed or omitted as permitted by such rules and regulations. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments necessary for a fair presentation of these financial statements.

Management is required to make estimates and judgments that affect the reported amount of assets, liabilities, revenue, and expenses and disclosure of contingent assets and liabilities in the accompanying financial statements. Actual results may differ from these estimates. The most significant of these estimates includes the estimate of costs to complete long-term contracts under the percentage-of-completion accounting methods, the estimate of useful lives for property, plant, and equipment, cash flow estimates used for testing the recoverability of assets, pension plan and postretirement obligation assumptions, estimates for inventory obsolescence, estimates for the valuation and useful lives of intangible assets, legal reserves, and the estimate of future environmental costs. Changes in estimates of contract sales, costs, and profits are recognized using the cumulative catch-up method of accounting. This method recognizes in the current period the cumulative effect of the changes on current and prior periods. Accordingly, the effect of the changes on future periods of contract performance is recognized as if the revised estimate had been the original estimate. During the three and nine months ended September 30, 2017 and 2016, 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 2016 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.
New Accounting Pronouncements, Policy [Policy Text Block] 
Recent accounting pronouncements adopted
Standard
Description
Effect on the condensed consolidated financial statements
ASU 2017-04 Simplifying the Test for Goodwill Impairment
In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which simplifies the measurement of goodwill impairment testing by removing step two. This guidance was early adopted effective January 1, 2017 and will be applied prospectively.

The adoption of this standard does not have a financial impact on the Condensed Consolidated Financial Statements.
Date of adoption: January 1, 2017
ASU 2016-09 Improvements to Employee Share-Based Payment Accounting
In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes and forfeitures. Excess tax benefits previously reported as cash flows from financing activities in the Condensed Consolidated Financial Statements are now required to be reported as operating activities. The Company adopted this guidance effective January 1, 2017.
The Corporation recorded an income tax benefit of approximately $5 million within the provision for income taxes for the nine months ended September 30, 2017 related to the excess tax benefit on stock options and performance share units. Prior to adoption, this amount would have been recorded as an increase to additional paid-in capital.

The Corporation elected to account for forfeitures as they occur, which did not have a material impact on its Condensed Consolidated Financial Statements.

Date of adoption: January 1, 2017


Recent accounting pronouncements to be adopted
Standard
Description
Effect on the condensed consolidated financial statements
ASU 2014-09 Revenue from Contracts with Customers
In May 2014, the FASB issued a comprehensive new revenue recognition standard which will supersede previous existing revenue recognition guidance. The standard creates a five-step model for revenue recognition that requires companies to exercise judgment when considering contract terms and relevant facts and circumstances. The five-step model includes (1) identifying the contract, (2) identifying the separate performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations and (5) recognizing revenue when each performance obligation has been satisfied. The standard also requires expanded disclosures surrounding revenue recognition. The standard is effective for fiscal periods beginning after December 15, 2017 and allows for either full retrospective or modified retrospective adoption.
The Corporation plans to apply the modified retrospective approach upon adoption and is currently evaluating the impact of adoption on its Condensed Consolidated Financial Statements as of January 1, 2018. While its assessment is ongoing and not yet complete, the Corporation anticipates certain contracts currently accounted for on a “point in time” basis will be required to transition to an “over-time” model as they meet one or more of the mandatory criteria established under the new standard. The Corporation expects the transition adjustment to primarily include the following: a) U.S. Government and commercial contracts where such promised goods do not have alternative use and the Corporation has an enforceable right to payment for performance completed to date; b) repair and overhaul services performed on customer-owned goods; and c) Defense-related contracts where the Corporation uses customer-furnished materials in production. We are in the process of implementing appropriate changes to our business processes, systems, and controls to support recognition and disclosure under the new standard. The Corporation will continue to monitor interpretative guidance issued by the FASB which may cause its evaluation to change.



Date of adoption: January 1, 2018
ASU 2016-02 Leases
In February 2016, the FASB issued final guidance that will require lessees to put most leases on their balance sheets but recognize expenses on their income statements in a manner similar to today’s accounting. The guidance requires the use of a modified retrospective approach.
The Corporation is currently evaluating the impact of the adoption of this standard on its Condensed Consolidated Financial Statements.
Date of adoption: January 1, 2019
ASU 2017-01
Clarifying the Definition of a Business

In January 2017, the FASB issued ASU 2017-01, which clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The standard introduces a screen for determining when assets acquired are not a business and clarifies that a business must include, at a minimum, an input and a substantive process that contribute to an output. The standard is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years.


The Corporation does not expect the adoption of this standard to have a material impact on its Condensed Consolidated Financial Statements.
Date of adoption: January 1, 2018
ASU 2017-07
Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost


In March 2017, the FASB issued final guidance that requires the service cost component of net periodic benefit costs from defined benefit and other postretirement benefit plans be included in the same Consolidated Statement of Earnings captions as other compensation costs arising from services rendered by the covered employees during the period. The other components of net benefit cost will be presented in the Statement of Earnings separately from service costs. This standard is effective for fiscal years beginning after December 15, 2017.  Following adoption, only service costs will be eligible for capitalization into manufactured inventories.  The amendments of this standard should be applied retrospectively for the presentation of the service cost component and the other components of net periodic benefit costs.

The Corporation is currently evaluating the impact of the adoption of this standard on its Condensed Consolidated Financial Statements.
Date of adoption: January 1, 2018
BASIS OF PRESENTATION Tables (Tables)
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block]
Recent accounting pronouncements adopted
Standard
Description
Effect on the condensed consolidated financial statements
ASU 2017-04 Simplifying the Test for Goodwill Impairment
In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which simplifies the measurement of goodwill impairment testing by removing step two. This guidance was early adopted effective January 1, 2017 and will be applied prospectively.

The adoption of this standard does not have a financial impact on the Condensed Consolidated Financial Statements.
Date of adoption: January 1, 2017
ASU 2016-09 Improvements to Employee Share-Based Payment Accounting
In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes and forfeitures. Excess tax benefits previously reported as cash flows from financing activities in the Condensed Consolidated Financial Statements are now required to be reported as operating activities. The Company adopted this guidance effective January 1, 2017.
The Corporation recorded an income tax benefit of approximately $5 million within the provision for income taxes for the nine months ended September 30, 2017 related to the excess tax benefit on stock options and performance share units. Prior to adoption, this amount would have been recorded as an increase to additional paid-in capital.

The Corporation elected to account for forfeitures as they occur, which did not have a material impact on its Condensed Consolidated Financial Statements.

Date of adoption: January 1, 2017
ACQUISITIONS (Tables)
Schedule of Business Acquisitions, by Acquisition [Table Text Block]
(In thousands)
 
2017
Accounts receivable
 
$
5,006

Inventory
 
22,702

Property, plant, and equipment
 
4,598

Other current and non-current assets
 
2,815

Intangible assets
 
88,900

Current and non-current liabilities
 
(6,672
)
Due to seller
 
(596
)
Net tangible and intangible assets
 
116,753

Purchase price, net of cash acquired
 
232,630

Goodwill
 
$
115,877

 
 
 
Goodwill deductible for tax purposes
 
$
115,877

RECEIVABLES (Table)
Schedule Of Accounts Notes Loans And Financing Receivable
The composition of receivables is as follows:
(In thousands)
September 30, 2017
 
December 31, 2016
Billed receivables:
 
 
 
Trade and other receivables
$
367,631

 
$
340,091

Less: Allowance for doubtful accounts
(7,306
)
 
(4,832
)
Net billed receivables
360,325

 
335,259

Unbilled receivables:
 
 
 
Recoverable costs and estimated earnings not billed
178,479

 
149,847

Less: Progress payments applied
(22,838
)
 
(22,044
)
Net unbilled receivables
155,641

 
127,803

Receivables, net
$
515,966

 
$
463,062

INVENTORIES (Table)
Schedule Of Inventory
(In thousands)
September 30, 2017
 
December 31, 2016
Raw materials
$
189,326

 
$
189,228

Work-in-process
85,636

 
73,843

Finished goods
127,647

 
112,478

Inventoried costs related to U.S. Government and other long-term contracts
61,587

 
57,516

Gross inventories
464,196

 
433,065

Less:  Inventory reserves
(55,240
)
 
(54,988
)
Progress payments applied, principally related to long-term contracts
(11,686
)
 
(11,103
)
Inventories, net
$
397,270

 
$
366,974

GOODWILL (Table)
Schedule Of Goodwill
The changes in the carrying amount of goodwill for the nine months ended September 30, 2017 are as follows:
(In thousands)
Commercial/Industrial
 
Defense
 
Power
 
Consolidated
December 31, 2016
$
436,141

 
$
327,655

 
$
187,261

 
$
951,057

Acquisitions
2,608

 
113,269

 
—

 
115,877

Divestitures
(1,168
)
 
(648
)
 
—

 
(1,816
)
Foreign currency translation adjustment
9,963

 
14,469

 
231

 
24,663

September 30, 2017
$
447,544

 
$
454,745

 
$
187,492

 
$
1,089,781

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:
 
 
September 30, 2017
 
December 31, 2016
(In thousands)
 
Gross
 
Accumulated Amortization
 
Net
 
Gross
 
Accumulated Amortization
 
Net
Technology
 
$
243,216

 
$
(110,441
)
 
$
132,775

 
$
166,859

 
$
(98,266
)
 
$
68,593

Customer related intangibles
 
366,910

 
(175,251
)
 
191,659

 
349,742

 
(157,154
)
 
192,588

Other intangible assets
 
40,613

 
(26,090
)
 
14,523

 
36,709

 
(26,429
)
 
10,280

Total
 
$
650,739

 
$
(311,782
)
 
$
338,957

 
$
553,310

 
$
(281,849
)
 
$
271,461

 
 
 
 
 
 
 
 
 
 
 
 
 
FAIR VALUE OF FINANCIAL INSTRUMENTS (Table)
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] 
Undesignated hedges

The location and amount of losses or (gains) recognized in income on forward exchange derivative contracts not designated for hedge accounting for the three and nine months ended September 30, were as follows:
 
 
Three Months Ended
 
Nine Months Ended
(In thousands)
 
September 30,
 
September 30,
Derivatives not designated as hedging instrument
 
2017
 
2016
 
2017
 
2016
Forward exchange contracts:
 
 
 
 
 
 
 
 
General and administrative expenses
 
$
(2,282
)
 
$
3,596

 
$
(1,668
)
 
$
8,632

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block] 
 
September 30, 2017
 
December 31, 2016
(In thousands)
Carrying Value
 
Estimated Fair Value
 
Carrying Value
 
Estimated Fair Value
5.51% Senior notes due 2017
150,000

 
150,888

 
150,000

 
154,509

3.84% Senior notes due 2021
100,000

 
103,949

 
100,000

 
102,463

3.70% Senior notes due 2023
225,000

 
232,186

 
225,000

 
226,946

3.85% Senior notes due 2025
100,000

 
103,517

 
100,000

 
100,338

4.24% Senior notes due 2026
200,000

 
211,242

 
200,000

 
203,592

4.05% Senior notes due 2028
75,000

 
77,751

 
75,000

 
74,630

4.11% Senior notes due 2028
100,000

 
104,235

 
100,000

 
99,876

Other debt
408

 
408

 
668

 
668

Total debt
950,408

 
984,176

 
950,668

 
963,022

Debt issuance costs, net
(869
)
 
(869
)
 
(984
)
 
(984
)
Unamortized interest rate swap proceeds
15,269

 
15,269

 
16,614

 
16,614

Total debt, net
$
964,808

 
$
998,576

 
$
966,298

 
$
978,652

PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Table) (Pension Plans Defined Benefit [Member])
Schedule Of Defined Benefit Plans Disclosures
The components of net periodic pension cost for the three and nine months ended September 30, 2017 and 2016 were as follows:

 
Three Months Ended
 
Nine Months Ended
(In thousands)
September 30,
 
September 30,
 
2017
 
2016
 
2017
 
2016
Service cost
$
5,874

 
$
6,347

 
$
18,819

 
$
18,832

Interest cost
6,951

 
7,503

 
19,406

 
22,915

Expected return on plan assets
(13,549
)
 
(13,462
)
 
(40,144
)
 
(40,633
)
Amortization of prior service cost
(24
)
 
(11
)
 
(75
)
 
(34
)
Amortization of unrecognized actuarial loss
2,525

 
2,837

 
9,691

 
9,023

Net periodic benefit cost
$
1,777


$
3,214


$
7,697


$
10,103

EARNINGS PER SHARE (Table)
Schedule of Earnings Per Share Reconciliation
A reconciliation of basic to diluted shares used in the earnings per share calculation is as follows:
 
 
Three Months Ended
 
Nine Months Ended
(In thousands)
September 30,
 
September 30,
 
2017
 
2016
 
2017
 
2016
Basic weighted-average shares outstanding
44,137

 
44,323

 
44,196

 
44,457

Dilutive effect of stock options and deferred stock compensation
549

 
674

 
586

 
671

Diluted weighted-average shares outstanding
44,686

 
44,997

 
44,782

 
45,128

SEGMENT INFORMATION (Table)
Schedule Of Segment Reporting Information By Segment 
 
Three Months Ended
 
Nine Months Ended
(In thousands)
September 30,
 
September 30,
 
2017
 
2016
 
2017
 
2016
Net sales
 
 
 
 
 
 
 
Commercial/Industrial
$
294,158

 
$
276,179

 
$
865,070

 
$
841,812

Defense
142,681

 
114,946

 
384,917

 
335,553

Power
132,102

 
117,929

 
412,667

 
370,798

Less: Intersegment revenues
(1,040
)
 
(1,962
)
 
(3,509
)
 
(4,797
)
Total consolidated
$
567,901

 
$
507,092

 
$
1,659,145

 
$
1,543,366

 
 
 
 
 
 
 
 
Operating income (expense)
 
 
 
 
 
 
 
Commercial/Industrial
$
46,774

 
$
39,067

 
$
121,088

 
$
108,076

Defense
33,636

 
28,822

 
65,978

 
64,276

Power
19,486

 
14,130

 
60,896

 
44,872

Corporate and eliminations (1)
(3,346
)
 
(5,446
)
 
(16,914
)
 
(15,299
)
Total consolidated
$
96,550

 
$
76,573

 
$
231,048

 
$
201,925


(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 

 
Three Months Ended
 
Nine Months Ended
(In thousands)
September 30,
 
September 30,
 
2017
 
2016
 
2017
 
2016
Total operating income
$
96,550

 
$
76,573

 
$
231,048

 
$
201,925

Interest expense
10,457

 
10,488

 
31,584

 
30,694

Other income, net
321

 
483

 
823

 
818

Earnings before income taxes
$
86,414

 
$
66,568

 
$
200,287

 
$
172,049

Reconciliation Of Assets From Segment To Consolidated 
(In thousands)
September 30, 2017
 
December 31, 2016
Identifiable assets
 
 
 
Commercial/Industrial
$
1,443,206

 
$
1,391,040

Defense
1,051,580

 
751,859

Power
502,553

 
516,321

Corporate and Other
223,885

 
378,561

Total consolidated
$
3,221,224

 
$
3,037,781

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Table)
Schedule of Comprehensive Income (Loss) 
The cumulative balance of each component of accumulated other comprehensive income (AOCI), net of tax, is as follows:
 
(In thousands)
Foreign currency translation adjustments, net
 
Total pension and postretirement adjustments, net
 
Accumulated other comprehensive income (loss)
December 31, 2015
$
(107,810
)
 
$
(118,118
)
 
$
(225,928
)
Other comprehensive income (loss) before reclassifications
(64,840
)
 
(7,892
)
 
(72,732
)
Amounts reclassified from accumulated other comprehensive loss
—

 
6,904

 
6,904

Net current period other comprehensive loss
(64,840
)
 
(988
)
 
(65,828
)
December 31, 2016
$
(172,650
)
 
$
(119,106
)
 
$
(291,756
)
Other comprehensive income (loss) before reclassifications
69,294

 
(669
)
 
68,625

Amounts reclassified from accumulated other comprehensive income (loss)
—

 
5,643

 
5,643

Net current period other comprehensive income
69,294

 
4,974

 
74,268

September 30, 2017
$
(103,356
)
 
$
(114,132
)
 
$
(217,488
)



Reclassification out of Accumulated Other Comprehensive Income 
Details of amounts reclassified from accumulated other comprehensive income (loss) are below:
 
(In thousands)
Amount reclassified from AOCI
 
Affected line item in the statement where net earnings is presented
Defined benefit pension and other postretirement benefit plans
 
 
 
Amortization of prior service costs
568

 
(1)
Amortization of actuarial losses
(9,525
)
 
(1)
 
(8,957
)
 
Total before tax
 
3,314

 
Income tax
Total reclassifications
$
(5,643
)
 
Net of tax


(1)
These items are included in the computation of net periodic benefit cost.  See Note 8, Pension and Other Postretirement Benefit Plans.
Reclassifications for Accounting Pronouncements (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
 
 
Income Tax Expense (Benefit)
$ 22,470 
$ 20,636 
$ 53,146 
$ 53,335 
Accounting Standards Update 2016-09 [Member]
 
 
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
 
 
Income Tax Expense (Benefit)
 
 
$ 5,372 
 
ACQUISITIONS (Details) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Dec. 31, 2016
Business Acquisition [Line Items]
 
 
 
Purchase Price, Net of Cash Acquired
$ 232,630 
$ 295 
 
Goodwill
1,089,781 
 
951,057 
2017 acquisitions [Member]
 
 
 
Business Acquisition [Line Items]
 
 
 
Accounts Receivable
5,006 
 
 
Inventory
22,702 
 
 
Property, Plant, and Equipment
4,598 
 
 
Other Current and Non-current Assets
2,815 
 
 
Intangible Assets, Other than Goodwill
88,900 
 
 
Current and Non-current Liabilities
6,672 
 
 
Due from Seller, Net
(596)
 
 
Net Tangible and Intangible Assets
116,753 
 
 
Purchase Price, Net of Cash Acquired
232,630 
 
 
Goodwill
115,877 
 
 
Goodwill, Expected Tax Deductible Amount
$ 115,877 
 
 
ACQUISITIONS Narrative (Details) (USD $)
9 Months Ended 0 Months Ended 9 Months Ended 0 Months Ended 9 Months Ended
Sep. 30, 2017
NumberAcquisitions
Sep. 30, 2016
Sep. 30, 2017
2017 acquisitions [Member]
Jan. 3, 2017
Defense [Member]
Teletronics Technology Corporation (TTC) [Member]
Sep. 30, 2017
Defense [Member]
Teletronics Technology Corporation (TTC) [Member]
Feb. 8, 2017
Commercial Industrial [Member]
Para Tech Coating, Inc (Para Tech) [Member]
Sep. 30, 2017
Commercial Industrial [Member]
Para Tech Coating, Inc (Para Tech) [Member]
Business Acquisition [Line Items]
 
 
 
 
 
 
 
Number of Businesses Acquired
2 
 
 
 
 
 
 
Effective Date of Acquisition
 
 
 
Jan. 03, 2017 
 
Feb. 08, 2017 
 
Purchase Price, Net of Cash Acquired
$ 232,630,000 
$ 295,000 
$ 232,630,000 
 
$ 226,015,000 
 
 
Revenue Reported by Acquired Entity for Last Annual Period
 
 
 
 
64,000,000 
 
 
Payments to Acquire Businesses, Gross
 
 
 
 
 
 
6,615,000 
Revenue of Acquiree since Acquisition Date, Actual
45,000,000 
 
 
 
 
 
 
Earnings or Loss of Acquiree since Acquisition Date, Actual
$ (1,000,000)
 
 
 
 
 
 
RECEIVABLES (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2017
Dec. 31, 2016
Billed receivables:
 
 
Trade and other receivables
$ 367,631 
$ 340,091 
Less: Allowance for doubtful accounts
(7,306)
(4,832)
Net billed receivables
360,325 
335,259 
Unbilled receivables:
 
 
Recoverable costs and estimated earnings not billed
178,479 
149,847 
Less: Progress payments applied
(22,838)
(22,044)
Net unbilled receivables
155,641 
127,803 
Receivables, net
$ 515,966 
$ 463,062 
INVENTORIES (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2017
Dec. 31, 2016
Inventory, Net [Abstract]
 
 
Raw material
$ 189,326 
$ 189,228 
Work-in-process
85,636 
73,843 
Finished goods and component parts
127,647 
112,478 
Inventoried costs related to U.S. Government and other long-term contracts
61,587 
57,516 
Gross inventories
464,196 
433,065 
Less: Inventory reserves
55,240 
54,988 
Progress payments applied, principally related to long-term contracts
(11,686)
(11,103)
Inventories, net
$ 397,270 
$ 366,974 
INVENTORIES (Narrative) (Detail) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2017
Dec. 31, 2016
Inventory, Net [Abstract]
 
 
Other inventory, capitalized costs
$ 30.4 
$ 28.8 
Other inventory, capitalized costs to be liquidated under firm orders
$ 4.1 
$ 3.9 
GOODWILL (Detail) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2017
Goodwill [Roll Forward]
 
December 31, 2016
$ 951,057 
Goodwill, Acquired During Period
115,877 
Goodwill, Written off Related to Sale of Business Unit
(1,816)
Foreign currency translation adjustment
24,663 
September 30, 2017
1,089,781 
Commercial Industrial [Member]
 
Goodwill [Roll Forward]
 
December 31, 2016
436,141 
Goodwill, Acquired During Period
2,608 
Goodwill, Written off Related to Sale of Business Unit
(1,168)
Foreign currency translation adjustment
9,963 
September 30, 2017
447,544 
Defense [Member]
 
Goodwill [Roll Forward]
 
December 31, 2016
327,655 
Goodwill, Acquired During Period
113,269 
Goodwill, Written off Related to Sale of Business Unit
(648)
Foreign currency translation adjustment
14,469 
September 30, 2017
454,745 
Power [Member]
 
Goodwill [Roll Forward]
 
December 31, 2016
187,261 
Foreign currency translation adjustment
231 
September 30, 2017
$ 187,492 
OTHER INTANGIBLE ASSETS, NET (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2017
Dec. 31, 2016
Finite Lived Intangible Assets [Line Items]
 
 
Gross
$ 650,739 
$ 553,310 
Accumulated Amortization
(311,782)
(281,849)
Net
338,957 
271,461 
Technology [Member]
 
 
Finite Lived Intangible Assets [Line Items]
 
 
Gross
243,216 
166,859 
Accumulated Amortization
(110,441)
(98,266)
Net
132,775 
68,593 
Customer Relationships [Member]
 
 
Finite Lived Intangible Assets [Line Items]
 
 
Gross
366,910 
349,742 
Accumulated Amortization
(175,251)
(157,154)
Net
191,659 
192,588 
Other Intangible Assets [Member]
 
 
Finite Lived Intangible Assets [Line Items]
 
 
Gross
40,613 
36,709 
Accumulated Amortization
(26,090)
(26,429)
Net
$ 14,523 
$ 10,280 
OTHER INTANGIBLE ASSETS, NET (Narrative) (Detail) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Finite Lived Intangible Assets [Line Items]
 
 
Finite-lived Intangible Assets Acquired
$ 88.9 
 
Amortization expense
28.8 
24.9 
Future amortization expense in remainder of fiscal year
38.8 
 
Future amortization expense in year two
37.7 
 
Future amortization expense in year three
36.0 
 
Future amortization expense in year four
34.1 
 
Future amortization expense in year five
32.3 
 
Technology [Member]
 
 
Finite Lived Intangible Assets [Line Items]
 
 
Finite-lived Intangible Assets Acquired
73.0 
 
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life
15 years 
 
Customer Relationships [Member]
 
 
Finite Lived Intangible Assets [Line Items]
 
 
Finite-lived Intangible Assets Acquired
12.9 
 
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life
16 years 3 months 18 days 
 
Other Intangible Assets [Member]
 
 
Finite Lived Intangible Assets [Line Items]
 
 
Finite-lived Intangible Assets Acquired
$ 3.0 
 
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life
7 years 
 
FAIR VALUE OF FINANCIAL INSTRUMENTS (Income Loss) (Detail) (General And Administrative Expense [Member], USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
General And Administrative Expense [Member]
 
 
 
 
Derivative Instruments Gain Loss [Line Items]
 
 
 
 
General and administrative expenses
$ (2,282)
$ 3,596 
$ (1,668)
$ 8,632 
FAIR VALUE OF FINANCIAL INSTRUMENTS (Debt) (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2017
Dec. 31, 2016
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Carrying Value
$ 964,808 
$ 966,298 
Estimated Fair Value
998,576 
978,652 
Long-term Debt, Gross
950,408 
950,668 
Debt Issuance Costs, Net
(869)
(984)
Deferred Gain (Loss) on Discontinuation of Interest Rate Fair Value Hedge
15,269 
16,614 
5.51% Senior notes due 2017 [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Carrying Value
150,000 
150,000 
Estimated Fair Value
150,888 
154,509 
Debt Instrument, Interest Rate, Stated Percentage
5.51% 
 
3.84% Senior notes due 2021 [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Carrying Value
100,000 
100,000 
Estimated Fair Value
103,949 
102,463 
Debt Instrument, Interest Rate, Stated Percentage
3.84% 
 
3.70% Senior notes due 2023 [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Carrying Value
225,000 
225,000 
Estimated Fair Value
232,186 
226,946 
Debt Instrument, Interest Rate, Stated Percentage
3.70% 
 
3.85% Senior notes due 2025 [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Carrying Value
100,000 
100,000 
Estimated Fair Value
103,517 
100,338 
Debt Instrument, Interest Rate, Stated Percentage
3.85% 
 
4.24% Senior notes due 2026 [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Carrying Value
200,000 
200,000 
Estimated Fair Value
211,242 
203,592 
Debt Instrument, Interest Rate, Stated Percentage
4.24% 
 
4.05% Senior notes due 2028 [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Carrying Value
75,000 
75,000 
Estimated Fair Value
77,751 
74,630 
Debt Instrument, Interest Rate, Stated Percentage
4.05% 
 
4.11% Senior Notes [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Carrying Value
100,000 
100,000 
Estimated Fair Value
104,235 
99,876 
Debt Instrument, Interest Rate, Stated Percentage
4.11% 
 
Other debt [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Carrying Value
408 
668 
Estimated Fair Value
408 
668 
Long-term Debt, gross [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Estimated Fair Value
$ 984,176 
$ 963,022 
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Detail) (Pension Plans Defined Benefit [Member], USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Pension Plans Defined Benefit [Member]
 
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
Service cost
$ 5,874 
$ 6,347 
$ 18,819 
$ 18,832 
Interest cost
6,951 
7,503 
19,406 
22,915 
Expected return on plan assets
(13,549)
(13,462)
(40,144)
(40,633)
Amortization of prior service cost
(24)
(11)
(75)
(34)
Amortization of unrecognized actuarial loss
2,525 
2,837 
9,691 
9,023 
Net postretirement benefit cost (income)
$ 1,777 
$ 3,214 
$ 7,697 
$ 10,103 
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Additional) (Detail) (USD $)
In Millions, unless otherwise specified
9 Months Ended 12 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Dec. 31, 2017
Scenario, Forecast [Member]
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay
6.00% 
 
 
Defined Contribution Plan, Cost
$ 10.0 
$ 8.9 
 
Defined Contribution Plan, Employer Discretionary Contribution Amount
$ 10.9 
 
$ 11.8 
EARNINGS PER SHARE (Detail)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Earnings Per Share Reconciliation [Abstract]
 
 
 
 
Basic weighted-average shares outstanding (shares)
44,137 
44,323 
44,196 
44,457 
Dilutive effect of stock options and deferred stock compensation (shares)
549 
674 
586 
671 
Diluted weighted-average shares outstanding (shares)
44,686 
44,997 
44,782 
45,128 
EARNINGS PER SHARE EARNINGS PER SHARE (Anti-dilutive) (Details)
In Thousands, unless otherwise specified
3 Months Ended
Sep. 30, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount
38 
SEGMENT INFORMATION (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Dec. 31, 2016
Segment Reporting Information [Line Items]
 
 
 
 
 
Net sales
$ 567,901 
$ 507,092 
$ 1,659,145 
$ 1,543,366 
 
Operating income (expense)
96,550 
76,573 
231,048 
201,925 
 
Identifiable assets
3,221,224 
 
3,221,224 
 
3,037,781 
Commercial Industrial [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Net sales
294,158 
276,179 
865,070 
841,812 
 
Operating income (expense)
46,774 
39,067 
121,088 
108,076 
 
Identifiable assets
1,443,206 
 
1,443,206 
 
1,391,040 
Defense [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Net sales
142,681 
114,946 
384,917 
335,553 
 
Operating income (expense)
33,636 
28,822 
65,978 
64,276 
 
Identifiable assets
1,051,580 
 
1,051,580 
 
751,859 
Power [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Net sales
132,102 
117,929 
412,667 
370,798 
 
Operating income (expense)
19,486 
14,130 
60,896 
44,872 
 
Identifiable assets
502,553 
 
502,553 
 
516,321 
Corporate, Non-Segment [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Operating income (expense)
(3,346)
(5,446)
(16,914)
(15,299)
 
Identifiable assets
223,885 
 
223,885 
 
378,561 
Intersegment Eliminations [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Net sales
$ (1,040)
$ (1,962)
$ (3,509)
$ (4,797)
 
SEGMENT INFORMATION (Reconciliation) (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Segment Reporting [Abstract]
 
 
 
 
Total operating income
$ 96,550 
$ 76,573 
$ 231,048 
$ 201,925 
Interest expense
(10,457)
(10,488)
(31,584)
(30,694)
Other income, net
321 
483 
823 
818 
Earnings before income taxes
$ 86,414 
$ 66,568 
$ 200,287 
$ 172,049 
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Dec. 31, 2016
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
 
 
 
 
Beginning balance
 
 
$ (291,756)
$ (225,928)
$ (225,928)
Other comprehensive income (loss) before reclassifications
 
 
68,625 
 
(72,732)
Amounts reclassified from accumulated other comprehensive loss
 
 
5,643 
 
6,904 
Other comprehensive income (loss), net of tax
26,673 
(10,732)
74,268 
(22,141)
(65,828)
Ending balance
(217,488)
 
(217,488)
 
(291,756)
Foreign Currency Translation Adjustments, Net [Member]
 
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
 
 
 
 
Beginning balance
 
 
(172,650)
(107,810)
(107,810)
Other comprehensive income (loss) before reclassifications
 
 
69,294 
 
(64,840)
Amounts reclassified from accumulated other comprehensive loss
 
 
0 
 
0 
Other comprehensive income (loss), net of tax
 
 
69,294 
 
(64,840)
Ending balance
(103,356)
 
(103,356)
 
(172,650)
Total Pension and Postretirment Adjustments, Net [Member]
 
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
 
 
 
 
Beginning balance
 
 
(119,106)
(118,118)
(118,118)
Other comprehensive income (loss) before reclassifications
 
 
(669)
 
(7,892)
Amounts reclassified from accumulated other comprehensive loss
 
 
5,643 
 
6,904 
Other comprehensive income (loss), net of tax
 
 
4,974 
 
(988)
Ending balance
$ (114,132)
 
$ (114,132)
 
$ (119,106)
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Reclass) (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
Earnings from continuing operations before income taxes
$ 86,414 
$ 66,568 
$ 200,287 
$ 172,049 
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
 
 
568 
 
Amortization of actuarial losses
 
 
(9,525)
 
Earnings from continuing operations before income taxes
 
 
(8,957)
 
Income tax
 
 
3,314 
 
Net earnings
 
 
$ (5,643)
 
CONTINGENCIES AND COMMITMENTS (Detail) (USD $)
0 Months Ended
Sep. 30, 2017
Standby Letters Of Credit [Member]
Dec. 31, 2016
Standby Letters Of Credit [Member]
Sep. 30, 2017
FinancialStandbyLetterOfCreditMember
Dec. 31, 2016
FinancialStandbyLetterOfCreditMember
Oct. 10, 2013
Failure to Meet Contractual Obligations [Member]
Sep. 30, 2017
Surety Bond [Member]
Sep. 30, 2017
Damage from Fire, Explosion or Other Hazard [Member]
Sep. 30, 2017
Minimum [Member]
Sep. 30, 2017
Maximum [Member]
Mar. 29, 2017
Westinghouse Electric Company (WEC) [Member]
Pending Litigation [Member]
Sep. 30, 2017
AP1000 US [Member]
Minimum [Member]
Sep. 30, 2017
AP1000 US [Member]
Maximum [Member]
Mar. 29, 2017
Westinghouse Electric Company (WEC) [Member]
Collectibility of Receivables [Member]
Loss Contingencies [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
Estimated Litigation Liability
 
 
 
 
 
 
$ 1,000,000,000 
 
 
 
 
 
 
Debtor-in-Possession Financing, Amount Arranged
 
 
 
 
 
 
 
 
 
800,000,000 
 
 
 
Letters of credit, outstanding
23,400,000 
47,200,000 
13,900,000 
12,800,000 
 
 
 
 
 
 
 
 
 
Surety Bond Outstanding
 
 
 
 
 
56,000,000 
 
 
 
 
 
 
 
Damages sought
 
 
 
 
25,000,000 
 
 
 
 
 
 
 
 
Range of possible loss
 
 
 
 
 
 
 
$ 0 
$ 55,500,000 
 
$ 0 
$ 31,000,000 
$ 6,500,000