CURTISS WRIGHT CORP, 10-Q filed on 10/27/2016
Quarterly Report
Document and Entity Information
9 Months Ended
Sep. 30, 2016
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, 2016 
Document Fiscal Year Focus
2016 
Document Fiscal Period Focus
Q3 
Amendment Flag
false 
Entity common stock shares outstanding
44,228,169 
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, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Net sales
 
 
 
 
Product sales
$ 413,905 
$ 427,732 
$ 1,244,148 
$ 1,313,290 
Service sales
93,187 
97,803 
299,218 
303,638 
Total net sales
507,092 
525,535 
1,543,366 
1,616,928 
Cost of sales
 
 
 
 
Cost of product sales
261,488 
284,007 
806,092 
864,701 
Cost of service sales
61,128 
56,034 
195,515 
193,286 
Total cost of sales
322,616 
340,041 
1,001,607 
1,057,987 
Gross profit
184,476 
185,494 
541,759 
558,941 
Research and development expenses
14,071 
15,050 
44,467 
45,633 
Selling expenses
26,273 
30,247 
85,025 
90,440 
General and administrative expenses
67,559 
76,384 
210,342 
220,778 
Operating income
76,573 
63,813 
201,925 
202,090 
Interest expense
(10,488)
(8,972)
(30,694)
(26,953)
Other income, net
483 
161 
818 
605 
Earnings from continuing operations before income taxes
66,568 
55,002 
172,049 
175,742 
Provision for income taxes
(20,636)
(16,860)
(53,335)
(54,256)
Earnings from continuing operations
45,932 
38,142 
118,714 
121,486 
Loss from discontinued operations, net of taxes
0 
(4,258)
0 
(45,874)
Net earnings
$ 45,932 
$ 33,884 
$ 118,714 
$ 75,612 
Basic earnings per share
 
 
 
 
Earnings from continuing operations (usd per share)
$ 1.04 
$ 0.82 
$ 2.67 
$ 2.58 
Earnings from discontinued operations (usd per share)
$ 0.00 
$ (0.09)
$ 0.00 
$ (0.97)
Total, Basic earnings per share (usd per share)
$ 1.04 
$ 0.73 
$ 2.67 
$ 1.61 
Diluted earnings per share
 
 
 
 
Earnings from continuing operations (usd per share)
$ 1.02 
$ 0.80 
$ 2.63 
$ 2.53 
Earnings from discontinued operations (usd per share)
$ 0.00 
$ (0.09)
$ 0.00 
$ (0.96)
Total, Diluted earnings per share (usd per share)
$ 1.02 
$ 0.71 
$ 2.63 
$ 1.57 
Dividends per share
$ 0.13 
$ 0.13 
$ 0.39 
$ 0.39 
Weighted average shares outstanding:
 
 
 
 
Basic (shares)
44,323 
46,366 
44,457 
47,082 
Diluted (shares)
44,997 
47,395 
45,128 
48,106 
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (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 earnings
$ 45,932 
$ 33,884 
$ 118,714 
$ 75,612 
Other comprehensive income
 
 
 
 
Foreign currency translation, net of tax
(12,366)1
(37,689)1
(26,907)1
(62,281)1
Pension and postretirement adjustments, net of tax
1,634 2
908 2
4,766 2
5,677 2
Other comprehensive loss, net of tax
(10,732)
(36,781)
(22,141)
(56,604)
Comprehensive income (loss)
$ 35,200 
$ (2,897)
$ 96,573 
$ 19,008 
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parentheticals) (USD $)
In Millions, 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]
 
 
 
 
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax
$ (0.7)
$ 0.2 
$ (1.0)
$ (2.8)
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Tax, Portion Attributable to Parent
$ 0.9 
$ 0.5 
$ 3.0 
$ 3.2 
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Current Assets:
 
 
Cash and cash equivalents
$ 452,053 
$ 288,697 
Receivables, net
462,004 
566,289 
Inventories, net
399,638 
379,591 
Other current assets
49,438 
40,306 
Total current assets
1,363,133 
1,274,883 
Property, plant, and equipment, net
387,458 
413,644 
Goodwill
964,446 
972,606 
Other intangible assets, net
283,670 
310,763 
Other assets
15,277 
17,715 
Total assets
3,013,984 
2,989,611 
Current liabilities:
 
 
Current portion of long-term debt and short-term debt
802 
1,259 
Accounts payable
133,101 
163,286 
Accrued expenses
116,778 
131,863 
Income taxes payable
6,461 
7,956 
Deferred revenue
196,609 
181,671 
Other current liabilities
34,264 
37,190 
Total current liabilities
488,015 
523,225 
Long-term debt
966,040 
951,946 
Deferred tax liabilities, net
73,650 
54,447 
Accrued pension and other postretirement benefit costs
100,999 
103,723 
Long-term portion of environmental reserves
14,534 
14,017 
Other liabilities
83,731 
86,830 
Total liabilities
1,726,969 
1,734,188 
Stockholders' Equity
 
 
Common stock, $1 par value, 100,000,000 shares authorized at September 30, 2016 and December 31, 2015; shares issued were 49,187,378 at September 30, 2016 and 49,189,702 at December 31, 2015; outstanding shares were 44,228,169 at September 30, 2016 and 44,621,348 at December 31, 2015
49,187 
49,190 
Additional paid in capital
134,597 
144,923 
Retained earnings
1,692,026 
1,590,645 
Accumulated other comprehensive loss
(248,069)
(225,928)
Common treasury stock, at cost (4,959,209 shares at September 30, 2016 and 4,568,354 shares at December 31, 2015)
(340,726)
(303,407)
Total stockholders' equity
1,287,015 
1,255,423 
Total liabilities and stockholders' equity
$ 3,013,984 
$ 2,989,611 
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
Sep. 30, 2016
Dec. 31, 2015
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 
49,189,702 
Common Stock, Shares, Outstanding
44,422,803 
44,621,348 
Treasury Stock, Shares
4,764,575 
4,568,354 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Cash flows from operating activities:
 
 
Net earnings
$ 118,714 
$ 75,612 
Adjustments to reconcile net earnings to net cash provided by (used for) operating activities
 
 
Depreciation and amortization
72,419 
76,428 
(Gain) / Loss on sale of businesses
(845)
15,759 
Gain on fixed asset disposals
(194)
(1,058)
Deferred income taxes
(6,388)
14,683 
Share-based compensation
7,813 
7,225 
Impairment of assets held for sale
0 
40,813 
Change in operating assets and liabilities, net of businesses acquired and divested:
 
 
Accounts receivable, net
95,200 
(13,079)
Inventories, net
(18,613)
(29,354)
Progress payments
4,094 
375 
Accounts payable and accrued expenses
(58,162)
(55,086)
Deferred revenue
14,937 
(27,900)
Income taxes payable
8,936 
19,750 
Net pension and postretirement liabilities
2,723 
(142,987)
Other Operating Activities, Cash Flow Statement
20,405 
 
Other current and long-term assets and liabilities
6,173 
14,128 
Net cash provided by (used for) operating activities
267,212 
(4,691)
Cash flows from investing activities:
 
 
Proceeds from sales and disposals of long lived assets
1,204 
1,914 
Proceeds from divestitures, net of cash sold and transaction costs
1,027 
36,941 
Additions to property, plant, and equipment
(26,127)
(23,848)
Acquisition of businesses, net of cash acquired
(295)
(13,263)
Additional consideration of prior period acquisitions
0 
(436)
Net cash provided by (used for) investing activities
(24,191)
1,308 
Cash flows from financing activities:
 
 
Borrowings under revolving credit facility
7,504 
68,841 
Payment of revolving credit facility
(7,961)
(68,521)
Repayments of Long-term Debt
 
(8,400)
Repurchases of common stock
(80,296)
(185,224)
Proceeds from share-based compensation
18,359 
14,616 
Dividends paid
(11,576)
(12,289)
Excess tax benefits from share-based compensation plans
6,771 
4,243 
Proceeds from (Payments for) Other Financing Activities
(469)
429 
Net cash used for financing activities
(67,668)
(186,305)
Effect of exchange-rate changes on cash
(11,997)
(12,503)
Net increase (decrease) in cash and cash equivalents
163,356 
(202,191)
Cash and cash equivalents at beginning of period
288,697 
450,116 
Cash and cash equivalents at end of period
452,053 
247,925 
Supplemental disclosure of non-cash activities:
 
 
Capital expenditures incurred but not yet paid
$ 688 
$ 427 
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, 2014
 
$ 49,190 
$ 158,043 
$ 1,469,306 
$ (128,411)
$ (69,695)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
Net earnings
 
 
 
145,461 
 
 
Other comprehensive loss, net of tax
(97,517)
 
 
 
(97,517)
 
Dividends paid/declared
 
 
 
(24,122)
 
 
Restricted stock
 
 
(10,303)
 
 
13,734 
Stock options exercised, net of tax
 
 
(11,349)
 
 
45,743 
Other
 
 
(647)
 
 
647 
Share-based compensation
 
 
9,179 
 
 
294 
Repurchases of common stock
 
 
 
 
 
(294,130)
Ending Balance at Dec. 31, 2015
1,255,423 
49,190 
144,923 
1,590,645 
(225,928)
(303,407)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
Net earnings
118,714 
 
 
118,714 
 
 
Other comprehensive loss, net of tax
(22,141)
 
 
 
(22,141)
 
Dividends paid/declared
 
 
 
(17,333)
 
 
Restricted stock
 
 
(10,921)
 
 
14,450 
Stock options exercised, net of tax
 
 
(5,695)
 
 
27,297 
Other
 
3 
(1,081)
 
 
788 
Share-based compensation
 
 
7,371 
 
 
442 
Repurchases of common stock
 
 
 
 
 
(80,296)
Ending Balance at Sep. 30, 2016
$ 1,287,015 
$ 49,187 
$ 134,597 
$ 1,692,026 
$ (248,069)
$ (340,726)
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 second quarter of 2015, the Corporation recorded additional costs of $11.5 million related to its long-term contract with Westinghouse to deliver reactor coolant pumps (RCPs) for the AP1000 nuclear power plants in China.  The increase in costs is due to a change in estimate related to production modifications that are the result of engineering and endurance testing. During the three and nine months ended September 30, 2016 and 2015, there were no other individual significant changes in estimated contract costs.

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 2015 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
Accounting pronouncement ASU 2015-17 - Balance Sheet Classification of Deferred Taxes was early adopted effective January 1, 2016 and accounting pronouncement ASU 2015-03 - Simplifying the Presentation of Debt Issuance Costs was adopted effective January 1, 2016. Both pronouncements were retrospectively adopted and, accordingly, certain amounts reported in the previous periods have been reclassified to conform to the current year presentation.

A summary of the impact of the reclassifications as of December 31, 2015 is shown in the below table.
 
 
 
Reclassifications
 
 
 
December 31, 2015
as reported
 
Deferred Taxes
 
Debt Issuance Costs 
 
December 31, 2015
as reclassified
Deferred tax assets. net
$
41,737

 
$
(41,737
)
 
$
—

 
$
—

Total current assets
$
1,316,620

 
$
(41,737
)
 
$
—

 
$
1,274,883

Other assets
$
15,745

 
$
3,107

 
$
(1,137
)
 
$
17,715

Total assets
$
3,029,378

 
$
(38,630
)
 
$
(1,137
)
 
$
2,989,611

Other current liabilities
$
39,152

 
$
(1,962
)
 
$
—

 
$
37,190

Total current liabilities
$
525,187

 
$
(1,962
)
 
$
—

 
$
523,225

Long-term debt
$
953,083

 
$
—

 
$
(1,137
)
 
$
951,946

Deferred tax liabilities, net
$
91,115

 
$
(36,668
)
 
$
—

 
$
54,447

Total liabilities
$
1,773,955

 
$
(38,630
)
 
$
(1,137
)
 
$
1,734,188

Total liabilities and stockholders' equity
$
3,029,378

 
$
(38,630
)
 
$
(1,137
)
 
$
2,989,611



Recent accounting pronouncements to be adopted
Standard
Description
Effect on the financial statements
ASU 2014-09 Revenue from contracts with customers
In May 2014, the FASB issued a comprehensive new revenue recognition standard which will supersede previous existing revenue recognition guidance. The standard creates a five-step model for revenue recognition that requires companies to exercise judgment when considering contract terms and relevant facts and circumstances. The five-step model includes (1) identifying the contract, (2) identifying the separate performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations and (5) recognizing revenue when each performance obligation has been satisfied. The standard also requires expanded disclosures surrounding revenue recognition. The standard is effective for fiscal periods beginning after December 15, 2017 and allows for either full retrospective or modified retrospective adoption.
The Corporation is currently evaluating the impact of the adoption of this standard on its Consolidated Financial Statements.
Date of adoption: January 1, 2018
ASU 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 Corporation is currently evaluating the impact of the adoption of this standard on its Consolidated Financial Statements.
Date of adoption: January 1, 2019
ASU 2016-09 Improvements to Employee Share-Based Payment Accounting
In March 2016, the FASB issued ASU 2016-09, 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, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows.
The Corporation is currently evaluating the impact of the adoption of this standard on its Consolidated Financial Statements.
Date of adoption: January 1, 2017
DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE
DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE
DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE

As part of a strategic portfolio review conducted in 2014, the Corporation identified certain businesses it considered non-core. The Corporation considers businesses non-core when the business’ products or services do not complement its existing businesses and where the long-term growth and profitability prospects are below the Corporation’s expectations. In 2015, the Corporation divested all five businesses that were classified as held for sale as of December 31, 2014. The results of operations of these businesses are reported as discontinued operations within our Condensed Consolidated Statements of Earnings.

The aggregate financial results of all discontinued operations for the three and nine months ended September 30, 2016 and 2015 were as follows:

 
 
Three Months Ended
 
Nine Months Ended
(In thousands)
 
September 30,
 
September 30,
 
 
2016
 
2015
 
2016
 
2015
Net sales
 
$
—

 
$
727

 
$
—

 
$
58,011

Loss from discontinued operations before income taxes (1)
 
—

 
(872
)
 
—

 
(40,831
)
Income tax benefit / (expense)
 
—

 
(1,231
)
 
—

 
7,725

Loss on sale of businesses (2)
 
—

 
(2,155
)
 
—

 
(12,768
)
Loss from discontinued operations
 
$
—

 
$
(4,258
)
 
$
—

 
$
(45,874
)



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

(2) Net of tax benefit for the three and nine months ended September 30, 2015 of $3.0 million, respectively.

Divestitures

In October 2015 and August 2015, the Corporation sold its two surface technology treatment facilities for an immaterial amount, that were previously classified as held for sale.

In July 2015, the Corporation sold the assets and liabilities of its Engineered Packaging business for approximately $14 million and recognized a pre-tax gain of $2.3 million.

In May 2015, the Corporation completed the divestiture of its Downstream oil and gas business for $19 million, net of transaction costs. The business had recorded impairment charges of $40 million during the nine months ended September 30, 2015. In connection with the sale, the Corporation realized a pre-tax loss on divestiture of $18 million for the nine months ended September 30, 2015.

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

For the year ended December 31, 2015, the Corporation disposed of five businesses in total aggregating to total cash proceeds of $31 million. The divestitures resulted in aggregate pre-tax losses in excess of $17 million, and tax benefits of approximately $3.3 million. Aggregate net sales attributable to these 2015 divestitures and facility closures for the three and nine months ended September 30, 2015 were $0.7 million and $58.0 million, respectively, and losses before income taxes for the three and nine months ended September 30, 2015 were $0.9 million and $40.8 million, respectively.
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, 2016
 
December 31, 2015
Billed receivables:
 
 
 
Trade and other receivables
$
323,336

 
$
435,172

Less: Allowance for doubtful accounts
(5,296
)
 
(5,664
)
Net billed receivables
318,040

 
429,508

Unbilled receivables:
 
 
 
Recoverable costs and estimated earnings not billed
167,151

 
153,045

Less: Progress payments applied
(23,187
)
 
(16,264
)
Net unbilled receivables
143,964

 
136,781

Receivables, net
$
462,004

 
$
566,289

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, 2016
 
December 31, 2015
Raw materials
$
205,598

 
$
196,684

Work-in-process
83,933

 
79,406

Finished goods and component parts
117,681

 
114,931

Inventoried costs related to long-term contracts
56,428

 
51,774

Gross inventories
463,640

 
442,795

Less:  Inventory reserves
(52,531
)
 
(48,904
)
Progress payments applied
(11,471
)
 
(14,300
)
Inventories
$
399,638

 
$
379,591



Inventoried costs related to long-term contracts include capitalized contract development costs related to certain aerospace and defense programs of $29.9 million and $29.7 million, as of September 30, 2016 and December 31, 2015, respectively. These capitalized costs will be liquidated as production units are delivered to the customers.  As of September 30, 2016 and December 31, 2015, $1.7 million and $2.5 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, 2016 are as follows:
(In thousands)
Commercial/Industrial
 
Defense
 
Power
 
Consolidated
December 31, 2015
$
447,828

 
$
337,603

 
$
187,175

 
$
972,606

Divestiture
—

 
(452
)
 
—

 
(452
)
Foreign currency translation adjustment
(6,181
)
 
(1,683
)
 
156

 
(7,708
)
September 30, 2016
$
441,647

 
$
335,468

 
$
187,331

 
$
964,446

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, 2016
 
December 31, 2015
(In thousands)
 
Gross
 
Accumulated Amortization
 
Net
 
Gross
 
Accumulated Amortization
 
Net
Technology
 
$
169,558

 
$
(97,373
)
 
$
72,185

 
$
171,382

 
$
(91,430
)
 
$
79,952

Customer related intangibles
 
354,727

 
(154,559
)
 
200,168

 
357,538

 
(140,816
)
 
216,722

Other intangible assets
 
37,159

 
(25,842
)
 
11,317

 
37,200

 
(23,111
)
 
14,089

Total
 
$
561,444

 
$
(277,774
)
 
$
283,670

 
$
566,120

 
$
(255,357
)
 
$
310,763

 
 
 
 
 
 
 
 
 
 
 
 
 


Total intangible amortization expense for the nine months ended September 30, 2016 was $24.9 million as compared to $26.2 million in the prior year period.  The estimated amortization expense for the five years ending December 31, 2016 through 2020 is $33.2 million, $32.7 million, $31.6 million, $29.8 million, and $27.9 million, respectively.
FAIR VALUE OF FINANCIAL INSTRUMENTS
FAIR VALUE OF FINANCIAL INSTRUMENTS
FAIR VALUE OF FINANCIAL INSTRUMENTS
 
Forward Foreign Exchange and Currency Option Contracts
 
The Corporation has foreign currency exposure primarily in the United Kingdom, Europe, and Canada.  The Corporation uses financial instruments, such as forward and option contracts, to hedge a portion of existing and anticipated foreign currency denominated transactions.  The purpose of the Corporation’s foreign currency risk management program is to reduce volatility in earnings caused by exchange rate fluctuations.  Guidance on accounting for derivative instruments and hedging activities requires companies to recognize all of the derivative financial instruments as either assets or liabilities at fair value in the Condensed Consolidated Balance Sheets based upon quoted market prices for comparable instruments.
 
Interest Rate Risks and Related Strategies
 
The Corporation’s primary interest rate exposure results from changes in U.S. dollar interest rates. The Corporation’s policy is to manage interest cost using a mix of fixed and variable rate debt. The Corporation periodically uses interest rate swaps to manage such exposures. Under these interest rate swaps, the Corporation exchanges, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to an agreed-upon notional principal amount.

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

On February 5, 2016, the Corporation terminated its March 2013 and January 2012 interest rate swap agreements. As a result of the termination, the Corporation received a cash payment of $20.4 million, representing the fair value of the interest rate swaps on the date of termination. In connection with the termination, the Corporation and the counterparties released each other from all obligations under the interest rate swaps agreement, including, without limitation, the obligation to make periodic payments under such agreements. The gain on termination is reflected as a bond premium to our notes' carrying value and amortized prospectively into interest expense over the remaining terms of the Senior Notes.

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

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

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

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

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

Effects on Consolidated Balance Sheets

The location and amounts of derivative instrument fair values in the condensed consolidated balance sheet are below.
(In thousands)
September 30, 2016
 
December 31, 2015
Assets
 
 
 
Designated for hedge accounting
 
 
 
Interest rate swaps
$
—

 
$
3,083

Undesignated for hedge accounting
 
 
 
Forward exchange contracts
$
25

 
$
223

Total asset derivatives (A)
$
25

 
$
3,306

Liabilities
 
 
 
Undesignated for hedge accounting
 
 
 
Forward exchange contracts
506

 
673

Total liability derivatives (B)
$
506

 
$
673



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

Effects on Condensed Consolidated Statements of Earnings
 
Fair value hedge
 
The location and amount of losses on the hedged fixed rate debt attributable to changes in the market interest rates and the offsetting gain on the related interest rate swaps for the three and nine months ended September 30, 2016 and 2015, were as follows:
 
 
Three Months Ended
 
Nine Months Ended
 
(In thousands)
 
September 30,
 
September 30,
 
 
 
2016
 
2015
 
2016
 
2015
 
Other income, net
 
 
 
 
 
 
 
 
 
Gain on interest rate swaps
 
$
—

 
$
16,954

 
$
—

 
$
12,632

 
Loss on hedged fixed rate debt
 
—

 
(16,954
)
 
—

 
(12,632
)
 
Total
 
$
—

 
$
—

 
$
—

 
$
—

 


Undesignated hedges

The location and amount of gains and (losses) recognized in income on forward exchange derivative contracts not designated for hedge accounting for the three and 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
 
2016
 
2015
 
2016
 
2015
Forward exchange contracts:
 
 
 
 
 
 
 
 
General and administrative expenses
 
$
(3,596
)
 
$
(6,136
)
 
$
(8,632
)
 
$
(7,692
)


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, 2016.  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, 2016
 
December 31, 2015
(In thousands)
Carrying Value
 
Estimated Fair Value
 
Carrying Value
 
Estimated Fair Value
5.51% Senior notes due 2017
150,000

 
155,759

 
150,000

 
158,024

3.84% Senior notes due 2021
100,000

 
104,804

 
100,307

 
100,307

3.70% Senior notes due 2023
225,000

 
233,284

 
225,000

 
224,322

3.85% Senior notes due 2025
100,000

 
104,138

 
100,450

 
100,450

4.24% Senior notes due 2026
200,000

 
212,880

 
201,422

 
201,422

4.05% Senior notes due 2028
75,000

 
78,294

 
75,904

 
75,904

4.11% Senior notes due 2028
100,000

 
104,931

 
100,000

 
99,720

Other debt
802

 
802

 
1,259

 
1,259

Total debt
950,802

 
994,892

 
954,342

 
961,408

Unamortized debt issuance costs (1)
(1,022
)
 
(1,022
)
 
(1,137
)
 
(1,137
)
Unamortized interest rate swap proceeds (2)
17,062

 
17,062

 
—

 
—

Total debt, net
$
966,842

 
$
1,010,932

 
$
953,205

 
$
960,271



(1) Effective for 2016, the Company adopted ASU 2015-03 - Simplifying the Presentation of Debt Issuance Costs requiring unamortized debt issuance costs to be presented on the balance sheet as a direct deduction from the carrying amount of the related debt liability. Prior year balances have been reclassified to reflect the current year presentation.

(2) In February 2016, the Company terminated its interest rate swap agreements.   Upon termination of the interest rate swaps, the Corporation received $20.4 million in cash and recorded a deferred gain of $18.3 million.  As of September 30, 2016, the remaining benefit of $17.1 million was recorded as an increase in the long-term debt balance and will be recognized ratably as a reduction to future interest expense over the remaining life of the related debt.

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

The following tables are consolidated disclosures of all domestic and foreign defined pension plans as described in the Corporation’s 2015 Annual Report on Form 10-K.  

Pension Plans

The components of net periodic pension cost for the three and nine months ended September 30, 2016 and 2015 were as follows:

 
Three Months Ended
 
Nine Months Ended
(In thousands)
September 30,
 
September 30,
 
2016
 
2015
 
2016
 
2015
Service cost
$
6,347

 
$
5,914

 
$
18,832

 
$
20,187

Interest cost
7,503

 
7,422

 
22,915

 
22,410

Expected return on plan assets
(13,462
)
 
(13,601
)
 
(40,633
)
 
(40,968
)
Amortization of prior service cost
(11
)
 
151

 
(34
)
 
462

Amortization of unrecognized actuarial loss
2,837

 
5,180

 
9,023

 
12,911

Settlement Charges
—

 
7,345

 
—

 
7,345

Net periodic benefit cost
$
3,214


$
12,411


$
10,103


$
22,347



During the nine months ended September 30, 2016, the Corporation made no contributions to the Curtiss-Wright Pension Plan, and does not expect to make any contributions in 2016. Effective May 1, 2016, the Corporation completed the merger of three frozen UK defined benefit pension schemes by merging the Metal Improvement Company Salaried Staff Pension Scheme and the Mechetronics Limited Retirement Benefits Scheme into the Curtiss-Wright Penny & Giles Pension Plan. The Penny & Giles Plan was then renamed the Curtiss-Wright UK Pension Plan.

In connection with the merger, the Corporation made an additional £3 million (approximately $4.4 million) cash contribution to the plan. The merger will benefit the Corporation by cost reduction achieved through streamlined advisor services and more efficient trust administration.

Scheduled contributions to the foreign benefit plans are not expected to be material in 2016.

The settlement charges recognized in the third quarter of 2015 represent events that are accounted for under guidance on employers’ accounting for settlements and curtailments of defined benefit pension plans. The charge is primarily a result of the retirement of the Corporation’s former Chairman and his election to receive the nonqualified portion of his pension benefit as a single lump sum payout and relates to the recognition of deferred actuarial losses triggered by the lump sum payouts exceeding a prescribed threshold.

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, 2016 and 2015, the expense relating to the plan was $8.9 million and $9.6 million, respectively. The Corporation made $10.4 million in contributions to the plan during the nine months ended September 30, 2016, and expects to make total contributions of $11.5 million in 2016.
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,
 
2016
 
2015
 
2016
 
2015
Basic weighted-average shares outstanding
44,323

 
46,366

 
44,457

 
47,082

Dilutive effect of share based compensation
674

 
1,029

 
671

 
1,024

Diluted weighted-average shares outstanding
44,997

 
47,395

 
45,128

 
48,106



As of September 30, 2016 and September 30, 2015, respectively, there were no stock options outstanding that were considered anti-dilutive.
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,
 
2016
 
2015
 
2016
 
2015
Net sales
 
 
 
 
 
 
 
Commercial/Industrial
$
276,179

 
$
293,039

 
$
841,812

 
$
898,011

Defense
114,946

 
118,019

 
335,553

 
352,520

Power
117,929

 
115,898

 
370,798

 
372,694

Less: Intersegment revenues
(1,962
)
 
(1,421
)
 
(4,797
)
 
(6,297
)
Total consolidated
$
507,092

 
$
525,535

 
$
1,543,366

 
$
1,616,928

 
 
 
 
 
 
 
 
Operating income (expense)
 
 
 
 
 
 
 
Commercial/Industrial
$
39,067

 
$
40,259

 
$
108,076

 
$
128,801

Defense
28,822

 
25,477

 
64,276

 
67,895

Power
14,130

 
13,545

 
44,872

 
34,511

Corporate and eliminations (1)
(5,446
)
 
(15,468
)
 
(15,299
)
 
(29,117
)
Total consolidated
$
76,573

 
$
63,813

 
$
201,925

 
$
202,090


(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.

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

 
Three Months Ended
 
Nine Months Ended
(In thousands)
September 30,
 
September 30,
 
2016
 
2015
 
2016
 
2015
Total operating income
$
76,573

 
$
63,813

 
$
201,925

 
$
202,090

Interest expense
10,488

 
8,972

 
30,694

 
26,953

Other income, net
483

 
161

 
818

 
605

Earnings from continuing operations before income taxes
$
66,568

 
$
55,002

 
$
172,049

 
$
175,742



(In thousands)
September 30, 2016
 
December 31, 2015
Identifiable assets
 
 
 
Commercial/Industrial
$
1,451,198

 
$
1,480,052

Defense
820,384

 
800,613

Power
528,052

 
629,612

Corporate and Other
214,350

 
79,334

Total consolidated
$
3,013,984

 
$
2,989,611

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, 2014
$
(20,283
)
 
$
(108,128
)
 
$
(128,411
)
Current period other comprehensive loss
(87,527
)
 
(9,990
)
 
(97,517
)
December 31, 2015
$
(107,810
)
 
$
(118,118
)
 
$
(225,928
)
Other comprehensive loss before reclassifications (1)
(26,907
)
 
(257
)
 
(27,164
)
Amounts reclassified from accumulated other comprehensive loss (1)
—

 
5,023

 
5,023

Net current period other comprehensive income (loss)
(26,907
)
 
4,766

 
(22,141
)
September 30, 2016
$
(134,717
)
 
$
(113,352
)
 
$
(248,069
)


(1)
All amounts are after tax.

Details of amounts reclassified from accumulated other comprehensive income (loss) are below:
 
(In thousands)
Amount reclassified from AOCI
 
Affected line item in the statement where net earnings is presented
Defined benefit pension and other postretirement benefit plans
 
 
 
Amortization of prior service costs
527

 
(1)
Amortization of actuarial losses
(8,596
)
 
(1)
 
(8,069
)
 
Total before tax
 
3,046

 
Income tax
Total reclassifications
$
(5,023
)
 
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. The Corporation is currently unable to estimate an amount, or range of potential losses, if any, from this matter. The Corporation believes it has adequate legal defenses and intends to defend this matter vigorously. The Corporation’s financial condition, results of operations, and cash flows, could be materially affected during a future fiscal quarter or fiscal year by unfavorable developments or outcome regarding this claim.

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

Letters of Credit and Other Financial Arrangements

The Corporation enters into standby letters of credit agreements and guarantees with financial institutions and customers primarily relating to guarantees of repayment, future performance on certain contracts to provide products and services, and to secure advance payments from certain international customers. As of September 30, 2016 and December 31, 2015, there were $36.9 million and $37.3 million of stand-by letters of credit outstanding, respectively, and $13.9 million and $14.7 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, 2016, 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, 2016.  As of September 30, 2016, the range of possible loss is $0 to $55.5 million.
BASIS OF PRESENTATION (Policies)
New Accounting Pronouncements, Policy [Policy Text Block] 
Recent accounting pronouncements adopted
Accounting pronouncement ASU 2015-17 - Balance Sheet Classification of Deferred Taxes was early adopted effective January 1, 2016 and accounting pronouncement ASU 2015-03 - Simplifying the Presentation of Debt Issuance Costs was adopted effective January 1, 2016. Both pronouncements were retrospectively adopted and, accordingly, certain amounts reported in the previous periods have been reclassified to conform to the current year presentation.

A summary of the impact of the reclassifications as of December 31, 2015 is shown in the below table.
 
 
 
Reclassifications
 
 
 
December 31, 2015
as reported
 
Deferred Taxes
 
Debt Issuance Costs 
 
December 31, 2015
as reclassified
Deferred tax assets. net
$
41,737

 
$
(41,737
)
 
$
—

 
$
—

Total current assets
$
1,316,620

 
$
(41,737
)
 
$
—

 
$
1,274,883

Other assets
$
15,745

 
$
3,107

 
$
(1,137
)
 
$
17,715

Total assets
$
3,029,378

 
$
(38,630
)
 
$
(1,137
)
 
$
2,989,611

Other current liabilities
$
39,152

 
$
(1,962
)
 
$
—

 
$
37,190

Total current liabilities
$
525,187

 
$
(1,962
)
 
$
—

 
$
523,225

Long-term debt
$
953,083

 
$
—

 
$
(1,137
)
 
$
951,946

Deferred tax liabilities, net
$
91,115

 
$
(36,668
)
 
$
—

 
$
54,447

Total liabilities
$
1,773,955

 
$
(38,630
)
 
$
(1,137
)
 
$
1,734,188

Total liabilities and stockholders' equity
$
3,029,378

 
$
(38,630
)
 
$
(1,137
)
 
$
2,989,611



Recent accounting pronouncements to be adopted
Standard
Description
Effect on the financial statements
ASU 2014-09 Revenue from contracts with customers
In May 2014, the FASB issued a comprehensive new revenue recognition standard which will supersede previous existing revenue recognition guidance. The standard creates a five-step model for revenue recognition that requires companies to exercise judgment when considering contract terms and relevant facts and circumstances. The five-step model includes (1) identifying the contract, (2) identifying the separate performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations and (5) recognizing revenue when each performance obligation has been satisfied. The standard also requires expanded disclosures surrounding revenue recognition. The standard is effective for fiscal periods beginning after December 15, 2017 and allows for either full retrospective or modified retrospective adoption.
The Corporation is currently evaluating the impact of the adoption of this standard on its Consolidated Financial Statements.
Date of adoption: January 1, 2018
ASU 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 Corporation is currently evaluating the impact of the adoption of this standard on its Consolidated Financial Statements.
Date of adoption: January 1, 2019
ASU 2016-09 Improvements to Employee Share-Based Payment Accounting
In March 2016, the FASB issued ASU 2016-09, 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, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows.
The Corporation is currently evaluating the impact of the adoption of this standard on its Consolidated Financial Statements.
Date of adoption: January 1, 2017
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 second quarter of 2015, the Corporation recorded additional costs of $11.5 million related to its long-term contract with Westinghouse to deliver reactor coolant pumps (RCPs) for the AP1000 nuclear power plants in China.  The increase in costs is due to a change in estimate related to production modifications that are the result of engineering and endurance testing. During the three and nine months ended September 30, 2016 and 2015, there were no other individual significant changes in estimated contract costs.

BASIS OF PRESENTATION Tables (Tables)
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block]
 
 
 
Reclassifications
 
 
 
December 31, 2015
as reported
 
Deferred Taxes
 
Debt Issuance Costs 
 
December 31, 2015
as reclassified
Deferred tax assets. net
$
41,737

 
$
(41,737
)
 
$
—

 
$
—

Total current assets
$
1,316,620

 
$
(41,737
)
 
$
—

 
$
1,274,883

Other assets
$
15,745

 
$
3,107

 
$
(1,137
)
 
$
17,715

Total assets
$
3,029,378

 
$
(38,630
)
 
$
(1,137
)
 
$
2,989,611

Other current liabilities
$
39,152

 
$
(1,962
)
 
$
—

 
$
37,190

Total current liabilities
$
525,187

 
$
(1,962
)
 
$
—

 
$
523,225

Long-term debt
$
953,083

 
$
—

 
$
(1,137
)
 
$
951,946

Deferred tax liabilities, net
$
91,115

 
$
(36,668
)
 
$
—

 
$
54,447

Total liabilities
$
1,773,955

 
$
(38,630
)
 
$
(1,137
)
 
$
1,734,188

Total liabilities and stockholders' equity
$
3,029,378

 
$
(38,630
)
 
$
(1,137
)
 
$
2,989,611

DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE (Table)
Schedule of Aggregate Financial Results of Discontinued Operations
The aggregate financial results of all discontinued operations for the three and nine months ended September 30, 2016 and 2015 were as follows:

 
 
Three Months Ended
 
Nine Months Ended
(In thousands)
 
September 30,
 
September 30,
 
 
2016
 
2015
 
2016
 
2015
Net sales
 
$
—

 
$
727

 
$
—

 
$
58,011

Loss from discontinued operations before income taxes (1)
 
—

 
(872
)
 
—

 
(40,831
)
Income tax benefit / (expense)
 
—

 
(1,231
)
 
—

 
7,725

Loss on sale of businesses (2)
 
—

 
(2,155
)
 
—

 
(12,768
)
Loss from discontinued operations
 
$
—

 
$
(4,258
)
 
$
—

 
$
(45,874
)



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

(2) Net of tax benefit for the three and nine months ended September 30, 2015 of $3.0 million, respectively.
RECEIVABLES (Table)
Schedule Of Accounts Notes Loans And Financing Receivable
The composition of receivables is as follows:
(In thousands)
September 30, 2016
 
December 31, 2015
Billed receivables:
 
 
 
Trade and other receivables
$
323,336

 
$
435,172

Less: Allowance for doubtful accounts
(5,296
)
 
(5,664
)
Net billed receivables
318,040

 
429,508

Unbilled receivables:
 
 
 
Recoverable costs and estimated earnings not billed
167,151

 
153,045

Less: Progress payments applied
(23,187
)
 
(16,264
)
Net unbilled receivables
143,964

 
136,781

Receivables, net
$
462,004

 
$
566,289

INVENTORIES (Table)
Schedule Of Inventory

(In thousands)
September 30, 2016
 
December 31, 2015
Raw materials
$
205,598

 
$
196,684

Work-in-process
83,933

 
79,406

Finished goods and component parts
117,681

 
114,931

Inventoried costs related to long-term contracts
56,428

 
51,774

Gross inventories
463,640

 
442,795

Less:  Inventory reserves
(52,531
)
 
(48,904
)
Progress payments applied
(11,471
)
 
(14,300
)
Inventories
$
399,638

 
$
379,591

GOODWILL (Table)
Schedule Of Goodwill
The changes in the carrying amount of goodwill for the nine months ended September 30, 2016 are as follows:
(In thousands)
Commercial/Industrial
 
Defense
 
Power
 
Consolidated
December 31, 2015
$
447,828

 
$
337,603

 
$
187,175

 
$
972,606

Divestiture
—

 
(452
)
 
—

 
(452
)
Foreign currency translation adjustment
(6,181
)
 
(1,683
)
 
156

 
(7,708
)
September 30, 2016
$
441,647

 
$
335,468

 
$
187,331

 
$
964,446

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, 2016
 
December 31, 2015
(In thousands)
 
Gross
 
Accumulated Amortization
 
Net
 
Gross
 
Accumulated Amortization
 
Net
Technology
 
$
169,558

 
$
(97,373
)
 
$
72,185

 
$
171,382

 
$
(91,430
)
 
$
79,952

Customer related intangibles
 
354,727

 
(154,559
)
 
200,168

 
357,538

 
(140,816
)
 
216,722

Other intangible assets
 
37,159

 
(25,842
)
 
11,317

 
37,200

 
(23,111
)
 
14,089

Total
 
$
561,444

 
$
(277,774
)
 
$
283,670

 
$
566,120

 
$
(255,357
)
 
$
310,763

 
 
 
 
 
 
 
 
 
 
 
 
 
FAIR VALUE OF FINANCIAL INSTRUMENTS (Table)
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] 
The location and amounts of derivative instrument fair values in the condensed consolidated balance sheet are below.
(In thousands)
September 30, 2016
 
December 31, 2015
Assets
 
 
 
Designated for hedge accounting
 
 
 
Interest rate swaps
$
—

 
$
3,083

Undesignated for hedge accounting
 
 
 
Forward exchange contracts
$
25

 
$
223

Total asset derivatives (A)
$
25

 
$
3,306

Liabilities
 
 
 
Undesignated for hedge accounting
 
 
 
Forward exchange contracts
506

 
673

Total liability derivatives (B)
$
506

 
$
673



(A)Forward exchange derivatives are included in Other current assets and interest rate swap assets are included in Other assets.
(B)Forward exchange derivatives are included in Other current liabilities
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] 
three and nine months ended September 30, 2016 and 2015, were as follows:
 
 
Three Months Ended
 
Nine Months Ended
 
(In thousands)
 
September 30,
 
September 30,
 
 
 
2016
 
2015
 
2016
 
2015
 
Other income, net
 
 
 
 
 
 
 
 
 
Gain on interest rate swaps
 
$
—

 
$
16,954

 
$
—

 
$
12,632

 
Loss on hedged fixed rate debt
 
—

 
(16,954
)
 
—

 
(12,632
)
 
Total
 
$
—

 
$
—

 
$
—

 
$
—

 


Undesignated hedges

The location and amount of gains and (losses) recognized in income on forward exchange derivative contracts not designated for hedge accounting for the three and 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
 
2016
 
2015
 
2016
 
2015
Forward exchange contracts:
 
 
 
 
 
 
 
 
General and administrative expenses
 
$
(3,596
)
 
$
(6,136
)
 
$
(8,632
)
 
$
(7,692
)
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block] 
 
September 30, 2016
 
December 31, 2015
(In thousands)
Carrying Value
 
Estimated Fair Value
 
Carrying Value
 
Estimated Fair Value
5.51% Senior notes due 2017
150,000

 
155,759

 
150,000

 
158,024

3.84% Senior notes due 2021
100,000

 
104,804

 
100,307

 
100,307

3.70% Senior notes due 2023
225,000

 
233,284

 
225,000

 
224,322

3.85% Senior notes due 2025
100,000

 
104,138

 
100,450

 
100,450

4.24% Senior notes due 2026
200,000

 
212,880

 
201,422

 
201,422

4.05% Senior notes due 2028
75,000

 
78,294

 
75,904

 
75,904

4.11% Senior notes due 2028
100,000

 
104,931

 
100,000

 
99,720

Other debt
802

 
802

 
1,259

 
1,259

Total debt
950,802

 
994,892

 
954,342

 
961,408

Unamortized debt issuance costs (1)
(1,022
)
 
(1,022
)
 
(1,137
)
 
(1,137
)
Unamortized interest rate swap proceeds (2)
17,062

 
17,062

 
—

 
—

Total debt, net
$
966,842

 
$
1,010,932

 
$
953,205

 
$
960,271

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, 2016 and 2015 were as follows:

 
Three Months Ended
 
Nine Months Ended
(In thousands)
September 30,
 
September 30,
 
2016
 
2015
 
2016
 
2015
Service cost
$
6,347

 
$
5,914

 
$
18,832

 
$
20,187

Interest cost
7,503

 
7,422

 
22,915

 
22,410

Expected return on plan assets
(13,462
)
 
(13,601
)
 
(40,633
)
 
(40,968
)
Amortization of prior service cost
(11
)
 
151

 
(34
)
 
462

Amortization of unrecognized actuarial loss
2,837

 
5,180

 
9,023

 
12,911

Settlement Charges
—

 
7,345

 
—

 
7,345

Net periodic benefit cost
$
3,214


$
12,411


$
10,103


$
22,347

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,
 
2016
 
2015
 
2016
 
2015
Basic weighted-average shares outstanding
44,323

 
46,366

 
44,457

 
47,082

Dilutive effect of share based compensation
674

 
1,029

 
671

 
1,024

Diluted weighted-average shares outstanding
44,997

 
47,395

 
45,128

 
48,106

SEGMENT INFORMATION (Table)
Schedule Of Segment Reporting Information By Segment 
 
Three Months Ended
 
Nine Months Ended
(In thousands)
September 30,
 
September 30,
 
2016
 
2015
 
2016
 
2015
Net sales
 
 
 
 
 
 
 
Commercial/Industrial
$
276,179

 
$
293,039

 
$
841,812

 
$
898,011

Defense
114,946

 
118,019

 
335,553

 
352,520

Power
117,929

 
115,898

 
370,798

 
372,694

Less: Intersegment revenues
(1,962
)
 
(1,421
)
 
(4,797
)
 
(6,297
)
Total consolidated
$
507,092

 
$
525,535

 
$
1,543,366

 
$
1,616,928

 
 
 
 
 
 
 
 
Operating income (expense)
 
 
 
 
 
 
 
Commercial/Industrial
$
39,067

 
$
40,259

 
$
108,076

 
$
128,801

Defense
28,822

 
25,477

 
64,276

 
67,895

Power
14,130

 
13,545

 
44,872

 
34,511

Corporate and eliminations (1)
(5,446
)
 
(15,468
)
 
(15,299
)
 
(29,117
)
Total consolidated
$
76,573

 
$
63,813

 
$
201,925

 
$
202,090


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

 
Three Months Ended
 
Nine Months Ended
(In thousands)
September 30,
 
September 30,
 
2016
 
2015
 
2016
 
2015
Total operating income
$
76,573

 
$
63,813

 
$
201,925

 
$
202,090

Interest expense
10,488

 
8,972

 
30,694

 
26,953

Other income, net
483

 
161

 
818

 
605

Earnings from continuing operations before income taxes
$
66,568

 
$
55,002

 
$
172,049

 
$
175,742

Reconciliation Of Assets From Segment To Consolidated 
(In thousands)
September 30, 2016
 
December 31, 2015
Identifiable assets
 
 
 
Commercial/Industrial
$
1,451,198

 
$
1,480,052

Defense
820,384

 
800,613

Power
528,052

 
629,612

Corporate and Other
214,350

 
79,334

Total consolidated
$
3,013,984

 
$
2,989,611

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, 2014
$
(20,283
)
 
$
(108,128
)
 
$
(128,411
)
Current period other comprehensive loss
(87,527
)
 
(9,990
)
 
(97,517
)
December 31, 2015
$
(107,810
)
 
$
(118,118
)
 
$
(225,928
)
Other comprehensive loss before reclassifications (1)
(26,907
)
 
(257
)
 
(27,164
)
Amounts reclassified from accumulated other comprehensive loss (1)
—

 
5,023

 
5,023

Net current period other comprehensive income (loss)
(26,907
)
 
4,766

 
(22,141
)
September 30, 2016
$
(134,717
)
 
$
(113,352
)
 
$
(248,069
)


(1)
All amounts are after tax.
Reclassification out of Accumulated Other Comprehensive Income 
Details of amounts reclassified from accumulated other comprehensive income (loss) are below:
 
(In thousands)
Amount reclassified from AOCI
 
Affected line item in the statement where net earnings is presented
Defined benefit pension and other postretirement benefit plans
 
 
 
Amortization of prior service costs
527

 
(1)
Amortization of actuarial losses
(8,596
)
 
(1)
 
(8,069
)
 
Total before tax
 
3,046

 
Income tax
Total reclassifications
$
(5,023
)
 
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 $)
3 Months Ended
Sep. 30, 2015
Sep. 30, 2016
Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
 
 
 
Cost of Goods Sold, Additional Unanticipated Costs
$ 11,500,000 
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
 
Assets, Current
 
1,363,133,000 
1,274,883,000 
Other assets
 
15,277,000 
17,715,000 
Total assets
 
3,013,984,000 
2,989,611,000 
Other current liabilities
 
34,264,000 
37,190,000 
Liabilities, Current
 
488,015,000 
523,225,000 
Long-term debt
 
966,040,000 
951,946,000 
Deferred tax liabilities, net
 
73,650,000 
54,447,000 
Liabilities
 
1,726,969,000 
1,734,188,000 
Liabilities and Equity
 
3,013,984,000 
2,989,611,000 
Accounting Standards Update 2015-17 [Member]
 
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
 
Deferred Tax Assets, Net, Current
 
 
(41,737,000)
Assets, Current
 
 
(41,737,000)
Other assets
 
 
3,107,000 
Total assets
 
 
(38,630,000)
Other current liabilities
 
 
(1,962,000)
Liabilities, Current
 
 
(1,962,000)
Deferred tax liabilities, net
 
 
(36,668,000)
Liabilities
 
 
(38,630,000)
Liabilities and Equity
 
 
(38,630,000)
Accounting Standards Update 2015-03 [Member]
 
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
 
Other assets
 
 
(1,137,000)
Total assets
 
 
(1,137,000)
Long-term debt
 
 
(1,137,000)
Liabilities
 
 
(1,137,000)
Liabilities and Equity
 
 
(1,137,000)
Scenario, Previously Reported [Member]
 
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
 
Deferred Tax Assets, Net, Current
 
 
41,737,000 
Assets, Current
 
 
1,316,620,000 
Other assets
 
 
15,745,000 
Total assets
 
 
3,029,378,000 
Other current liabilities
 
 
39,152,000 
Liabilities, Current
 
 
525,187,000 
Long-term debt
 
 
953,083,000 
Deferred tax liabilities, net
 
 
91,115,000 
Liabilities
 
 
1,773,955,000 
Liabilities and Equity
 
 
$ 3,029,378,000 
DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE - Aggregate Financial Results (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Dec. 31, 2015
Discontinued Operations and Disposal Groups [Abstract]
 
 
 
 
 
Net sales
$ 0 
$ 700 
$ 0 
$ 58,000 
 
Loss from discontinued operations before income taxes
0 
(872)
0 
(40,831)
 
Income tax benefit / (expense)
0 
(1,231)
0 
7,725 
 
Loss on sale of businesses
0 
(2,155)
0 
(12,768)
 
Loss from discontinued operations
0 
(4,258)
0 
(45,874)
 
Impairment of assets held for sale
 
41,000 
0 
40,813 
 
Net tax expense (benefit)
 
$ 2,980 
 
$ 2,980 
$ 3,000 
DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE - Narrative (Details)
3 Months Ended 9 Months Ended 12 Months Ended 3 Months Ended 1 Months Ended 3 Months Ended 1 Months Ended
Sep. 30, 2016
USD ($)
Sep. 30, 2015
USD ($)
Sep. 30, 2016
USD ($)
Sep. 30, 2015
USD ($)
Dec. 31, 2015
USD ($)
facility
Oct. 29, 2015
Surface Technology Treatment Facilities [Member]
facility
Jul. 31, 2015
Engineered Packaging [Member]
USD ($)
May 31, 2015
Downstream [Member]
USD ($)
Sep. 30, 2015
Downstream [Member]
USD ($)
Jan. 31, 2015
Aviation Ground Support [Member]
USD ($)
Jan. 31, 2015
Aviation Ground Support [Member]
GBP (£)
Income Statement Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Businesses sold, number of facilities
 
 
 
 
5 
2 
 
 
 
 
 
Proceeds from sale of businesses
 
 
$ 1,027,000 
$ 36,941,000 
$ 31,000,000 
 
$ 14,000,000 
$ 19,000,000 
 
$ 4,000,000 
£ 3,000,000 
Pre-tax gains (losses)
 
 
 
 
(17,000,000)
 
2,300,000 
 
 
 
 
Impairment of assets held for sale
 
41,000,000 
0 
40,813,000 
 
 
 
 
40,000,000 
 
 
Gain (loss) on sale of business
 
 
845,000 
(15,759,000)
 
 
 
 
 
 
 
Net tax expense (benefit)
 
2,980,000 
 
2,980,000 
3,000,000 
 
 
 
 
 
 
Net sales
0 
700,000 
0 
58,000,000 
 
 
 
 
 
 
 
Loss from discontinued operations, net of taxes
$ 0 
$ (4,258,000)
$ 0 
$ (45,874,000)
 
 
 
 
 
 
 
RECEIVABLES (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Billed receivables:
 
 
Trade and other receivables
$ 323,336 
$ 435,172 
Less: Allowance for doubtful accounts
(5,296)
(5,664)
Net billed receivables
318,040 
429,508 
Unbilled receivables:
 
 
Recoverable costs and estimated earnings not billed
167,151 
153,045 
Less: Progress payments applied
(23,187)
(16,264)
Net unbilled receivables
143,964 
136,781 
Receivables, net
$ 462,004 
$ 566,289 
INVENTORIES (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Inventory, Net [Abstract]
 
 
Raw material
$ 205,598 
$ 196,684 
Work-in-process
83,933 
79,406 
Finished goods and component parts
117,681 
114,931 
Inventoried costs related to long-term contracts
56,428 
51,774 
Gross inventories
463,640 
442,795 
Less: Inventory reserves
52,531 
48,904 
Progress payments applied
(11,471)
(14,300)
Inventories
$ 399,638 
$ 379,591 
INVENTORIES (Narrative) (Detail) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Inventory, Net [Abstract]
 
 
Other inventory, capitalized costs
$ 29.9 
$ 29.7 
Other inventory, capitalized costs to be liquidated under firm orders
$ 1.7 
$ 2.5 
GOODWILL (Detail) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2016
Goodwill [Roll Forward]
 
December 31, 2015
$ 972,606 
Goodwill, Written off Related to Sale of Business Unit
(452)
Foreign currency translation adjustment
(7,708)
September 30, 2016
964,446 
Commercial Industrial [Member]
 
Goodwill [Roll Forward]
 
December 31, 2015
447,828 
Foreign currency translation adjustment
(6,181)
September 30, 2016
441,647 
Defense [Member]
 
Goodwill [Roll Forward]
 
December 31, 2015
337,603 
Goodwill, Written off Related to Sale of Business Unit
(452)
Foreign currency translation adjustment
(1,683)
September 30, 2016
335,468 
Power [Member]
 
Goodwill [Roll Forward]
 
December 31, 2015
187,175 
Foreign currency translation adjustment
156 
September 30, 2016
$ 187,331 
OTHER INTANGIBLE ASSETS, NET (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Finite Lived Intangible Assets [Line Items]
 
 
Gross
$ 561,444 
$ 566,120 
Accumulated Amortization
(277,774)
(255,357)
Net
283,670 
310,763 
Technology [Member]
 
 
Finite Lived Intangible Assets [Line Items]
 
 
Gross
169,558 
171,382 
Accumulated Amortization
(97,373)
(91,430)
Net
72,185 
79,952 
Customer Related Intangibles [Member]
 
 
Finite Lived Intangible Assets [Line Items]
 
 
Gross
354,727 
357,538 
Accumulated Amortization
(154,559)
(140,816)
Net
200,168 
216,722 
Other Intangible Assets [Member]
 
 
Finite Lived Intangible Assets [Line Items]
 
 
Gross
37,159 
37,200 
Accumulated Amortization
(25,842)
(23,111)
Net
$ 11,317 
$ 14,089 
OTHER INTANGIBLE ASSETS, NET (Narrative) (Detail) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Finite Lived Intangible Assets [Line Items]
 
 
Amortization expense
$ 24.9 
$ 26.2 
Future amortization expense in remainder of fiscal year
33.2 
 
Future amortization expense in year two
32.7 
 
Future amortization expense in year three
31.6 
 
Future amortization expense in year four
29.8 
 
Future amortization expense in year five
$ 27.9 
 
FAIR VALUE OF FINANCIAL INSTRUMENTS (Interest Rate Swap) (Detail) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2016
Fair Value Disclosures [Abstract]
 
Other Operating Activities, Cash Flow Statement
$ 20,405 
FAIR VALUE OF FINANCIAL INSTRUMENTS (Balance Sheet) (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Assets
$ 25 
$ 3,306 
Liabilities
506 
673 
Designated as Hedging Instrument [Member] |
Interest Rate Swap [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Assets
 
3,083 
Not Designated as Hedging Instrument [Member] |
Foreign Exchange Forward [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Assets
25 
223 
Liabilities
$ 506 
$ 673 
FAIR VALUE OF FINANCIAL INSTRUMENTS (Income Loss) (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
General And Administrative Expense [Member]
 
 
 
 
Derivative Instruments Gain Loss [Line Items]
 
 
 
 
General and administrative expenses
$ (3,596)
$ (6,136)
$ (8,632)
$ (7,692)
Swap [Member] |
Other Income [Member]
 
 
 
 
Derivative Instruments Gain Loss [Line Items]
 
 
 
 
Gain on interest rate swaps
 
16,954 
 
12,632 
Borrowings [Member] |
Other Income [Member]
 
 
 
 
Derivative Instruments Gain Loss [Line Items]
 
 
 
 
Gain on interest rate swaps
 
$ (16,954)
 
$ (12,632)
FAIR VALUE OF FINANCIAL INSTRUMENTS (Debt) (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2016
Feb. 29, 2016
Dec. 31, 2015
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
 
Carrying Value
$ 966,842 
 
$ 953,205 
Estimated Fair Value
1,010,932 
 
960,271 
Long-term Debt, Gross
950,802 
 
954,342 
Debt Issuance Costs, Net
(1,022)
 
(1,137)
Deferred Gain (Loss) on Discontinuation of Interest Rate Fair Value Hedge
17,062 
18,300 
 
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
155,759 
 
158,024 
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 
 
100,307 
Estimated Fair Value
104,804 
 
100,307 
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
233,284 
 
224,322 
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 
 
100,450 
Estimated Fair Value
104,138 
 
100,450 
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 
 
201,422 
Estimated Fair Value
212,880 
 
201,422 
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 
 
75,904 
Estimated Fair Value
78,294 
 
75,904 
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
104,931 
 
99,720 
Debt Instrument, Interest Rate, Stated Percentage
4.11% 
 
 
Other debt [Member]
 
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
 
Carrying Value
802 
 
1,259 
Estimated Fair Value
802 
 
1,259 
Long-term Debt, gross [Member]
 
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
 
Estimated Fair Value
$ 994,892 
 
$ 961,408 
FAIR VALUE OF FINANCIAL INSTRUMENTS (Nonrecurring measurements) (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Impairment of assets held for sale
$ 41,000 
$ 0 
$ 40,813 
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, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Pension Plans Defined Benefit [Member]
 
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
Service cost
$ 6,347 
$ 5,914 
$ 18,832 
$ 20,187 
Interest cost
7,503 
7,422 
22,915 
22,410 
Expected return on plan assets
(13,462)
(13,601)
(40,633)
(40,968)
Amortization of prior service cost
(11)
151 
(34)
462 
Amortization of unrecognized actuarial loss
2,837 
5,180 
9,023 
12,911 
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements
 
7,345 
 
7,345 
Net postretirement benefit cost (income)
$ 3,214 
$ 12,411 
$ 10,103 
$ 22,347 
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Additional) (Detail)
In Millions, unless otherwise specified
9 Months Ended 12 Months Ended
Sep. 30, 2016
USD ($)
Sep. 30, 2015
USD ($)
Sep. 30, 2016
Foreign Postretirement Benefit Plan [Member]
USD ($)
Sep. 30, 2016
Foreign Postretirement Benefit Plan [Member]
GBP (£)
Dec. 31, 2016
Scenario, Forecast [Member]
USD ($)
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
 
Defined Benefit Plan, Contributions by Employer
 
 
$ 4.4 
£ 3.0 
 
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay
6.00% 
 
 
 
 
Defined Contribution Plan, Cost Recognized
8.9 
9.6 
 
 
 
Defined Contribution Plan, Employer Discretionary Contribution Amount
$ 10.4 
 
 
 
$ 11.5 
EARNINGS PER SHARE (Detail)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Earnings Per Share Reconciliation [Abstract]
 
 
 
 
Basic weighted-average shares outstanding (shares)
44,323 
46,366 
44,457 
47,082 
Dilutive effect of stock options and deferred stock compensation (shares)
674 
1,029 
671 
1,024 
Diluted weighted-average shares outstanding (shares)
44,997 
47,395 
45,128 
48,106 
SEGMENT INFORMATION (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Dec. 31, 2015
Segment Reporting Information [Line Items]
 
 
 
 
 
Net sales
$ 507,092 
$ 525,535 
$ 1,543,366 
$ 1,616,928 
 
Operating income (expense)
76,573 
63,813 
201,925 
202,090 
 
Identifiable assets
3,013,984 
 
3,013,984 
 
2,989,611 
Commercial Industrial [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Net sales
276,179 
293,039 
841,812 
898,011 
 
Operating income (expense)
39,067 
40,259 
108,076 
128,801 
 
Identifiable assets
1,451,198 
 
1,451,198 
 
1,480,052 
Defense [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Net sales
114,946 
118,019 
335,553 
352,520 
 
Operating income (expense)
28,822 
25,477 
64,276 
67,895 
 
Identifiable assets
820,384 
 
820,384 
 
800,613 
Power [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Net sales
117,929 
115,898 
370,798 
372,694 
 
Operating income (expense)
14,130 
13,545 
44,872 
34,511 
 
Identifiable assets
528,052 
 
528,052 
 
629,612 
Corporate, Non-Segment [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Operating income (expense)
(5,446)
(15,468)
(15,299)
(29,117)
 
Identifiable assets
214,350 
 
214,350 
 
79,334 
Intersegment Eliminations [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Net sales
$ (1,962)
$ (1,421)
$ (4,797)
$ (6,297)
 
SEGMENT INFORMATION (Reconciliation) (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Segment Reporting [Abstract]
 
 
 
 
Total operating income
$ 76,573 
$ 63,813 
$ 201,925 
$ 202,090 
Interest expense
(10,488)
(8,972)
(30,694)
(26,953)
Other income, net
483 
161 
818 
605 
Earnings from continuing operations before income taxes
$ 66,568 
$ 55,002 
$ 172,049 
$ 175,742 
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Dec. 31, 2015
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
 
 
 
 
Beginning balance
 
 
$ (225,928)
$ (128,411)
$ (128,411)
Other comprehensive income (loss) before reclassifications
 
 
(27,164)
 
 
Amounts reclassified from accumulated other comprehensive loss
 
 
5,023 
 
 
Other comprehensive loss, net of tax
(10,732)
(36,781)
(22,141)
(56,604)
(97,517)
Ending balance
(248,069)
 
(248,069)
 
(225,928)
Foreign Currency Translation Adjustments, Net [Member]
 
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
 
 
 
 
Beginning balance
 
 
(107,810)
(20,283)
(20,283)
Other comprehensive income (loss) before reclassifications
 
 
(26,907)
 
 
Amounts reclassified from accumulated other comprehensive loss
 
 
0 
 
 
Other comprehensive loss, net of tax
 
 
(26,907)
 
(87,527)
Ending balance
(134,717)
 
(134,717)
 
(107,810)
Total Pension and Postretirment Adjustments, Net [Member]
 
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
 
 
 
 
Beginning balance
 
 
(118,118)
(108,128)
(108,128)
Other comprehensive income (loss) before reclassifications
 
 
(257)
 
 
Amounts reclassified from accumulated other comprehensive loss
 
 
5,023 
 
 
Other comprehensive loss, net of tax
 
 
4,766 
 
(9,990)
Ending balance
$ (113,352)
 
$ (113,352)
 
$ (118,118)
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Reclass) (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
Earnings from continuing operations before income taxes
$ 66,568 
$ 55,002 
$ 172,049 
$ 175,742 
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
 
 
527 
 
Amortization of actuarial losses
 
 
(8,596)
 
Earnings from continuing operations before income taxes
 
 
(8,069)
 
Income tax
 
 
3,046 
 
Net earnings
 
 
$ (5,023)
 
CONTINGENCIES AND COMMITMENTS (Detail) (USD $)
0 Months Ended
Sep. 30, 2016
Standby Letters Of Credit [Member]
Dec. 31, 2015
Standby Letters Of Credit [Member]
Sep. 30, 2016
FinancialStandbyLetterOfCreditMember
Dec. 31, 2015
FinancialStandbyLetterOfCreditMember
Oct. 10, 2013
Failure to Meet Contractual Obligations [Member]
Sep. 30, 2016
Surety Bond [Member]
Sep. 30, 2016
Damage from Fire, Explosion or Other Hazard [Member]
Sep. 30, 2016
Minimum [Member]
Sep. 30, 2016
Maximum [Member]
Loss Contingencies [Line Items]
 
 
 
 
 
 
 
 
 
Estimated Litigation Liability
 
 
 
 
 
 
$ 1,000,000,000 
 
 
Letters of credit, outstanding
36,900,000 
37,300,000 
13,900,000 
14,700,000 
 
 
 
 
 
Surety Bond Outstanding
 
 
 
 
 
56,000,000 
 
 
 
Damages sought
 
 
 
 
25,000,000 
 
 
 
 
Range of possible loss
 
 
 
 
 
 
 
$ 0 
$ 56,000,000