CURTISS WRIGHT CORP, 10-Q filed on 7/27/2017
Quarterly Report
Document and Entity Information
6 Months Ended
Jun. 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
Jun. 30, 2017 
Document Fiscal Year Focus
2017 
Document Fiscal Period Focus
Q2 
Amendment Flag
false 
Entity common stock shares outstanding
44,137,906 
Entity well known seasoned issuer
Yes 
Entity Voluntary Filers
No 
Entity Current Reporting Status
Yes 
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Net sales
 
 
 
 
Product sales
$ 459,774 
$ 427,324 
$ 883,003 
$ 830,242 
Service sales
107,879 
105,442 
208,241 
206,031 
Total net sales
567,653 
532,766 
1,091,244 
1,036,273 
Cost of sales
 
 
 
 
Cost of product sales
299,739 
279,869 
586,231 
544,604 
Cost of service sales
69,144 
67,518 
135,468 
134,387 
Total cost of sales
368,883 
347,387 
721,699 
678,991 
Gross profit
198,770 
185,379 
369,545 
357,282 
Research and development expenses
15,501 
15,236 
30,799 
30,396 
Selling expenses
28,560 
29,126 
57,513 
58,752 
General and administrative expenses
71,438 
72,928 
146,735 
142,782 
Operating income
83,271 
68,089 
134,498 
125,352 
Interest expense
(10,750)
(10,273)
(21,127)
(20,206)
Other income, net
190 
101 
502 
335 
Earnings from continuing operations before income taxes
72,711 
57,917 
113,873 
105,481 
Provision for income taxes
(22,061)
(17,954)
(30,676)
(32,699)
Net earnings
$ 50,650 
$ 39,963 
$ 83,197 
$ 72,782 
Basic earnings per share
 
 
 
 
Basic earnings per share (usd per share)
$ 1.15 
$ 0.90 
$ 1.88 
$ 1.63 
Diluted earnings per share
 
 
 
 
Diluted earnings per share (usd per share)
$ 1.13 
$ 0.88 
$ 1.86 
$ 1.61 
Dividends per share
$ 0.13 
$ 0.13 
$ 0.26 
$ 0.26 
Weighted average shares outstanding:
 
 
 
 
Basic (shares)
44,213 
44,487 
44,221 
44,526 
Diluted (shares)
44,807 
45,164 
44,825 
45,195 
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Statement of Comprehensive Income [Abstract]
 
 
 
 
Net earnings
$ 50,650 
$ 39,963 
$ 83,197 
$ 72,782 
Other comprehensive income
 
 
 
 
Foreign currency translation, net of tax
32,677 1
(31,646)1
43,901 1
(14,541)1
Pension and postretirement adjustments, net of tax
1,743 2
1,520 2
3,694 2
3,132 2
Other comprehensive income (loss), net of tax
34,420 
(30,126)
47,595 
(11,409)
Comprehensive income
$ 85,070 
$ 9,837 
$ 130,792 
$ 61,373 
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parentheticals) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Statement of Comprehensive Income [Abstract]
 
 
 
 
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax
$ 1.1 
$ (1.3)
$ 1.2 
$ (0.3)
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax, Attributable to Parent
$ 1.2 
$ 1.1 
$ 2.5 
$ 2.1 
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2017
Dec. 31, 2016
Current Assets:
 
 
Cash and cash equivalents
$ 342,711 
$ 553,848 
Receivables, net
502,216 
463,062 
Inventories, net
396,245 
366,974 
Other current assets
45,932 
30,927 
Total current assets
1,287,104 
1,414,811 
Property, plant, and equipment, net
390,520 
388,903 
Goodwill
1,082,944 
951,057 
Other intangible assets, net
345,991 
271,461 
Other assets
14,715 
11,549 
Total assets
3,121,274 
3,037,781 
Current liabilities:
 
 
Current portion of long-term debt and short-term debt
150,820 
150,668 
Accounts payable
157,088 
177,911 
Accrued expenses
116,492 
130,239 
Income taxes payable
10,578 
18,274 
Deferred revenue
183,955 
170,143 
Other current liabilities
34,858 
28,027 
Total current liabilities
653,791 
675,262 
Long-term debt
814,810 
815,630 
Deferred tax liabilities, net
55,675 
49,722 
Accrued pension and other postretirement benefit costs
103,181 
107,151 
Long-term portion of environmental reserves
16,091 
14,024 
Other liabilities
84,561 
84,801 
Total liabilities
1,728,109 
1,746,590 
Stockholders' Equity
 
 
Common stock, $1 par value,100,000,000 shares authorized at June 30, 2017 and December 31, 2016; 49,187,378 shares issued at June 30, 2017 and December 31, 2016; outstanding shares were 44,137,906 at June 30, 2017 and 44,181,050 at December 31, 2016
49,187 
49,187 
Additional paid in capital
122,584 
129,483 
Retained earnings
1,825,697 
1,754,907 
Accumulated other comprehensive loss
(244,161)
(291,756)
Common treasury stock, at cost (5,049,472 shares at June 30, 2017 and 5,006,328 shares at December 31, 2016)
(360,142)
(350,630)
Total stockholders' equity
1,393,165 
1,291,191 
Total liabilities and stockholders' equity
$ 3,121,274 
$ 3,037,781 
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
Jun. 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
44,137,906 
44,181,050 
Treasury Stock, Shares
5,049,472 
5,006,328 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Cash flows from operating activities:
 
 
Net earnings
$ 83,197 
$ 72,782 
Adjustments to reconcile net earnings to net cash provided by operating activities
 
 
Depreciation and amortization
49,961 
48,987 
Gain on fixed asset disposals
(197)
(28)
Deferred income taxes
(1,750)
14,127 
Share-based compensation
6,016 
4,985 
Change in operating assets and liabilities, net of businesses acquired and divested:
 
 
Accounts receivable, net
(27,246)
85,281 
Inventories, net
534 
(14,527)
Progress payments
(1,316)
(345)
Accounts payable and accrued expenses
(48,229)
(65,856)
Deferred revenue
11,171 
9,153 
Income taxes payable
(13,217)
(25,412)
Net pension and postretirement liabilities
1,041 
412 
Other Operating Activities, Cash Flow Statement
0 
20,405 
Other current and long-term assets and liabilities
967 
6,667 
Net cash provided by operating activities
60,932 
156,631 
Cash flows from investing activities:
 
 
Proceeds from sales and disposals of long lived assets
349 
244 
Additions to property, plant, and equipment
(23,288)
(15,733)
Acquisition of businesses, net of cash acquired
(232,630)
(295)
Net cash used for investing activities
(255,569)
(15,784)
Cash flows from financing activities:
 
 
Borrowings under revolving credit facility
2,736 
3,755 
Payment of revolving credit facility
(2,584)
(3,901)
Repurchases of common stock
(26,454)
(54,958)
Proceeds from share-based compensation
5,374 
13,098 
Dividends paid
(5,757)
(5,797)
Excess tax benefits from share-based compensation plans
0 
6,220 
Proceeds from (Payments for) Other Financing Activities
(336)
(308)
Net cash used for financing activities
(27,021)
(41,891)
Effect of exchange-rate changes on cash
10,521 
(4,502)
Net increase (decrease) in cash and cash equivalents
(211,137)
94,454 
Cash and cash equivalents at beginning of period
553,848 
288,697 
Cash and cash equivalents at end of period
342,711 
383,151 
Supplemental disclosure of non-cash activities:
 
 
Capital expenditures incurred but not yet paid
$ 1,641 
$ 775 
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
83,197 
 
 
83,197 
 
 
Other comprehensive loss, net of tax
47,595 
 
 
 
47,595 
 
Dividends paid/declared
 
 
 
(11,498)
 
 
Restricted stock
 
 
(9,618)
 
 
9,618 
Stock options exercised
 
 
(851)
 
 
6,227 
Other
 
 
(2,099)
(909)
 
750 
Share-based compensation
 
 
5,669 
 
 
347 
Repurchases of common stock
 
 
 
 
 
(26,454)
Ending Balance at Jun. 30, 2017
$ 1,393,165 
$ 49,187 
$ 122,584 
$ 1,825,697 
$ (244,161)
$ (360,142)
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 six months ended June 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 $4 million within the provision for income taxes for the six months ended June 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. We have performed a preliminary review of our customer contracts; however, our assessment is still ongoing and not yet complete. It is expected that the disclosures in our Notes to the Condensed Consolidated Financial Statements related to revenue recognition will be expanded under the new standard. The Corporation will continue to monitor interpretative guidance issued by the FASB which may cause our 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 is currently evaluating the impact of the adoption of this standard 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 will change how the net periodic benefit cost for defined benefit pension and other postretirement benefit plans are presented in the income statement and the respective capitalization of assets on the balance sheet. The guidance requires the use of a retrospective approach for the presentation of the income statement and a prospective approach for the presentation of the balance sheet.
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 six months ended June 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 six months ended June 30, 2016.

The Condensed Consolidated Statement of Earnings includes $25 million of total net sales and $4 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 six months ended June 30, 2017.

(In thousands)
 
2017
 
2016
Accounts receivable
 
$
5,020

 
$
—

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
 
(7,163
)
 
—

Due to seller, net
 
(509
)
 
—

Net tangible and intangible assets
 
116,363

 
—

Purchase price, net of cash acquired
 
232,630

 
—

Goodwill
 
$
116,267

 
$
—

 
 
 
 
 
Goodwill deductible for tax purposes
 
$
116,267

 
$
—



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. The acquisition is subject to post-closing adjustments as the purchase price allocation is not yet complete.

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. The acquisition is subject to post-closing adjustments as the purchase price allocation is not yet complete.
RECEIVABLES
RECEIVABLES
RECEIVABLES

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

The composition of receivables is as follows:
(In thousands)
June 30, 2017
 
December 31, 2016
Billed receivables:
 
 
 
Trade and other receivables
$
374,691

 
$
340,091

Less: Allowance for doubtful accounts
(7,219
)
 
(4,832
)
Net billed receivables
367,472

 
335,259

Unbilled receivables:
 
 
 
Recoverable costs and estimated earnings not billed
158,006

 
149,847

Less: Progress payments applied
(23,262
)
 
(22,044
)
Net unbilled receivables
134,744

 
127,803

Receivables, net
$
502,216

 
$
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)
June 30, 2017
 
December 31, 2016
Raw materials
$
195,461

 
$
189,228

Work-in-process
85,321

 
73,843

Finished goods
123,362

 
112,478

Inventoried costs related to U.S. Government and other long-term contracts
60,008

 
57,516

Gross inventories
464,152

 
433,065

Less:  Inventory reserves
(58,108
)
 
(54,988
)
Progress payments applied, principally related to long-term contracts
(9,799
)
 
(11,103
)
Inventories, net
$
396,245

 
$
366,974



Inventoried costs related to long-term contracts include capitalized contract development costs related to certain aerospace and defense programs of $29.9 million and $28.8 million, as of June 30, 2017 and December 31, 2016, respectively. These capitalized costs will be liquidated as production units are delivered to the customers.  As of June 30, 2017 and December 31, 2016, $4.6 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 six months ended June 30, 2017 are as follows:
(In thousands)
Commercial/Industrial
 
Defense
 
Power
 
Consolidated
December 31, 2016
$
436,141

 
$
327,655

 
$
187,261

 
$
951,057

Acquisitions
2,420

 
113,847

 
—

 
116,267

Foreign currency translation adjustment
6,468

 
9,044

 
108

 
15,620

June 30, 2017
$
445,029

 
$
450,546

 
$
187,369

 
$
1,082,944

OTHER INTANGIBLE ASSETS, NET
OTHER INTANGIBLE ASSETS, NET
OTHER INTANGIBLE ASSETS, NET
 
The following tables present the cumulative composition of the Corporation’s intangible assets:
 
 
June 30, 2017
 
December 31, 2016
(In thousands)
 
Gross
 
Accumulated Amortization
 
Net
 
Gross
 
Accumulated Amortization
 
Net
Technology
 
$
240,858

 
$
(105,400
)
 
$
135,458

 
$
166,859

 
$
(98,266
)
 
$
68,593

Customer related intangibles
 
363,500

 
(168,351
)
 
195,149

 
349,742

 
(157,154
)
 
192,588

Other intangible assets
 
40,250

 
(24,866
)
 
15,384

 
36,709

 
(26,429
)
 
10,280

Total
 
$
644,608

 
$
(298,617
)
 
$
345,991

 
$
553,310

 
$
(281,849
)
 
$
271,461

 
 
 
 
 
 
 
 
 
 
 
 
 

During the six months ended June 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 six months ended June 30, 2017 was $19.1 million as compared to $16.8 million in the prior year period.  The estimated amortization expense for the five years ending December 31, 2017 through 2021 is $38.7 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 June 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 six months ended June 30, were as follows:
 
 
Three Months Ended
 
Six Months Ended
(In thousands)
 
June 30,
 
June 30,
Derivatives not designated as hedging instrument
 
2017
 
2016
 
2017
 
2016
Forward exchange contracts:
 
 
 
 
 
 
 
 
General and administrative expenses
 
$
(93
)
 
$
4,452

 
$
614

 
$
5,036



Debt

The estimated fair value amounts were determined by the Corporation using available market information that is primarily based on quoted market prices for the same or similar issues as of June 30, 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.

 
June 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

 
152,161

 
150,000

 
154,509

3.84% Senior notes due 2021
100,000

 
104,107

 
100,000

 
102,463

3.70% Senior notes due 2023
225,000

 
232,173

 
225,000

 
226,946

3.85% Senior notes due 2025
100,000

 
103,389

 
100,000

 
100,338

4.24% Senior notes due 2026
200,000

 
211,038

 
200,000

 
203,592

4.05% Senior notes due 2028
75,000

 
77,685

 
75,000

 
74,630

4.11% Senior notes due 2028
100,000

 
104,158

 
100,000

 
99,876

Other debt
820

 
820

 
668

 
668

Total debt
950,820

 
985,531

 
950,668

 
963,022

Debt issuance costs, net
(907
)
 
(907
)
 
(984
)
 
(984
)
Unamortized interest rate swap proceeds
15,717

 
15,717

 
16,614

 
16,614

Total debt, net
$
965,630

 
$
1,000,341

 
$
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 six months ended June 30, 2017 and 2016 were as follows:

 
Three Months Ended
 
Six Months Ended
(In thousands)
June 30,
 
June 30,
 
2017
 
2016
 
2017
 
2016
Service cost
$
6,474

 
$
6,248

 
$
12,945

 
$
12,485

Interest cost
6,236

 
7,709

 
12,455

 
15,412

Expected return on plan assets
(13,310
)
 
(13,590
)
 
(26,595
)
 
(27,171
)
Amortization of prior service cost
(26
)
 
(11
)
 
(51
)
 
(23
)
Amortization of unrecognized actuarial loss
3,585

 
3,093

 
7,166

 
6,186

Net periodic benefit cost
$
2,959


$
3,449


$
5,920


$
6,889



During the six months ended June 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 six months ended June 30, 2017 and 2016, the expense relating to the plan was $6.8 million and $6.0 million, respectively. The Corporation made $9.4 million in contributions to the plan during the six months ended June 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
 
Six Months Ended
(In thousands)
June 30,
 
June 30,
 
2017
 
2016
 
2017
 
2016
Basic weighted-average shares outstanding
44,213

 
44,487

 
44,221

 
44,526

Dilutive effect of stock options and deferred stock compensation
594

 
677

 
604

 
669

Diluted weighted-average shares outstanding
44,807

 
45,164

 
44,825

 
45,195



For the three months and six months ended June 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 six months ended June 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
 
Six Months Ended
(In thousands)
June 30,
 
June 30,
 
2017
 
2016
 
2017
 
2016
Net sales
 
 
 
 
 
 
 
Commercial/Industrial
$
291,856

 
$
290,428

 
$
570,912

 
$
565,633

Defense
127,399

 
114,877

 
242,236

 
220,607

Power
149,970

 
129,123

 
280,565

 
252,869

Less: Intersegment revenues
(1,572
)
 
(1,662
)
 
(2,469
)
 
(2,836
)
Total consolidated
$
567,653

 
$
532,766

 
$
1,091,244

 
$
1,036,273

 
 
 
 
 
 
 
 
Operating income (expense)
 
 
 
 
 
 
 
Commercial/Industrial
$
43,693

 
$
38,957

 
$
74,314

 
$
69,009

Defense
21,187

 
18,609

 
32,342

 
35,454

Power
24,870

 
16,114

 
41,410

 
30,742

Corporate and eliminations (1)
(6,479
)
 
(5,591
)
 
(13,568
)
 
(9,853
)
Total consolidated
$
83,271

 
$
68,089

 
$
134,498

 
$
125,352


(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
 
Six Months Ended
(In thousands)
June 30,
 
June 30,
 
2017
 
2016
 
2017
 
2016
Total operating income
$
83,271

 
$
68,089

 
$
134,498

 
$
125,352

Interest expense
10,750

 
10,273

 
21,127

 
20,206

Other income, net
190

 
101

 
502

 
335

Earnings before income taxes
$
72,711

 
$
57,917

 
$
113,873

 
$
105,481



(In thousands)
June 30, 2017
 
December 31, 2016
Identifiable assets
 
 
 
Commercial/Industrial
$
1,420,411

 
$
1,391,040

Defense
1,013,636

 
751,859

Power
517,053

 
516,321

Corporate and Other
170,174

 
378,561

Total consolidated
$
3,121,274

 
$
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 (1)
(64,840
)
 
(7,892
)
 
(72,732
)
Amounts reclassified from accumulated other comprehensive loss (1)
—

 
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 (1)
43,901

 
(507
)
 
43,394

Amounts reclassified from accumulated other comprehensive income (loss) (1)
—

 
4,201

 
4,201

Net current period other comprehensive income
43,901

 
3,694

 
47,595

June 30, 2017
$
(128,749
)
 
$
(115,412
)
 
$
(244,161
)


(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
379

 
(1)
Amortization of actuarial losses
(7,064
)
 
(1)
 
(6,685
)
 
Total before tax
 
2,484

 
Income tax
Total reclassifications
$
(4,201
)
 
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.

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 June 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 post-petition amounts due.  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 June 30, 2017 and December 31, 2016, there were $48.8 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 June 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 June 30, 2017.  As of June 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.
SUBSEQUENT EVENTS
Subsequent Events [Text Block]

On July 20, 2017, the Board of Directors unanimously authorized a $0.02, or 15%, increase in the Corporation’s quarterly dividend to $0.15 per share. The increase will be reflected in the Corporation’s third quarter distribution, to be paid in October 2017.
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 six months ended June 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 $4 million within the provision for income taxes for the six months ended June 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. We have performed a preliminary review of our customer contracts; however, our assessment is still ongoing and not yet complete. It is expected that the disclosures in our Notes to the Condensed Consolidated Financial Statements related to revenue recognition will be expanded under the new standard. The Corporation will continue to monitor interpretative guidance issued by the FASB which may cause our 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 is currently evaluating the impact of the adoption of this standard 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 will change how the net periodic benefit cost for defined benefit pension and other postretirement benefit plans are presented in the income statement and the respective capitalization of assets on the balance sheet. The guidance requires the use of a retrospective approach for the presentation of the income statement and a prospective approach for the presentation of the balance sheet.
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 $4 million within the provision for income taxes for the six months ended June 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
 
2016
Accounts receivable
 
$
5,020

 
$
—

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
 
(7,163
)
 
—

Due to seller, net
 
(509
)
 
—

Net tangible and intangible assets
 
116,363

 
—

Purchase price, net of cash acquired
 
232,630

 
—

Goodwill
 
$
116,267

 
$
—

 
 
 
 
 
Goodwill deductible for tax purposes
 
$
116,267

 
$
—

RECEIVABLES (Table)
Schedule Of Accounts Notes Loans And Financing Receivable
The composition of receivables is as follows:
(In thousands)
June 30, 2017
 
December 31, 2016
Billed receivables:
 
 
 
Trade and other receivables
$
374,691

 
$
340,091

Less: Allowance for doubtful accounts
(7,219
)
 
(4,832
)
Net billed receivables
367,472

 
335,259

Unbilled receivables:
 
 
 
Recoverable costs and estimated earnings not billed
158,006

 
149,847

Less: Progress payments applied
(23,262
)
 
(22,044
)
Net unbilled receivables
134,744

 
127,803

Receivables, net
$
502,216

 
$
463,062

INVENTORIES (Table)
Schedule Of Inventory
(In thousands)
June 30, 2017
 
December 31, 2016
Raw materials
$
195,461

 
$
189,228

Work-in-process
85,321

 
73,843

Finished goods
123,362

 
112,478

Inventoried costs related to U.S. Government and other long-term contracts
60,008

 
57,516

Gross inventories
464,152

 
433,065

Less:  Inventory reserves
(58,108
)
 
(54,988
)
Progress payments applied, principally related to long-term contracts
(9,799
)
 
(11,103
)
Inventories, net
$
396,245

 
$
366,974

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

 
$
327,655

 
$
187,261

 
$
951,057

Acquisitions
2,420

 
113,847

 
—

 
116,267

Foreign currency translation adjustment
6,468

 
9,044

 
108

 
15,620

June 30, 2017
$
445,029

 
$
450,546

 
$
187,369

 
$
1,082,944

OTHER INTANGIBLE ASSETS, NET (Table)
Schedule Of Intangible Assets By Major Class
The following tables present the cumulative composition of the Corporation’s intangible assets:
 
 
June 30, 2017
 
December 31, 2016
(In thousands)
 
Gross
 
Accumulated Amortization
 
Net
 
Gross
 
Accumulated Amortization
 
Net
Technology
 
$
240,858

 
$
(105,400
)
 
$
135,458

 
$
166,859

 
$
(98,266
)
 
$
68,593

Customer related intangibles
 
363,500

 
(168,351
)
 
195,149

 
349,742

 
(157,154
)
 
192,588

Other intangible assets
 
40,250

 
(24,866
)
 
15,384

 
36,709

 
(26,429
)
 
10,280

Total
 
$
644,608

 
$
(298,617
)
 
$
345,991

 
$
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 six months ended June 30, were as follows:
 
 
Three Months Ended
 
Six Months Ended
(In thousands)
 
June 30,
 
June 30,
Derivatives not designated as hedging instrument
 
2017
 
2016
 
2017
 
2016
Forward exchange contracts:
 
 
 
 
 
 
 
 
General and administrative expenses
 
$
(93
)
 
$
4,452

 
$
614

 
$
5,036

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block] 
 
June 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

 
152,161

 
150,000

 
154,509

3.84% Senior notes due 2021
100,000

 
104,107

 
100,000

 
102,463

3.70% Senior notes due 2023
225,000

 
232,173

 
225,000

 
226,946

3.85% Senior notes due 2025
100,000

 
103,389

 
100,000

 
100,338

4.24% Senior notes due 2026
200,000

 
211,038

 
200,000

 
203,592

4.05% Senior notes due 2028
75,000

 
77,685

 
75,000

 
74,630

4.11% Senior notes due 2028
100,000

 
104,158

 
100,000

 
99,876

Other debt
820

 
820

 
668

 
668

Total debt
950,820

 
985,531

 
950,668

 
963,022

Debt issuance costs, net
(907
)
 
(907
)
 
(984
)
 
(984
)
Unamortized interest rate swap proceeds
15,717

 
15,717

 
16,614

 
16,614

Total debt, net
$
965,630

 
$
1,000,341

 
$
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 six months ended June 30, 2017 and 2016 were as follows:

 
Three Months Ended
 
Six Months Ended
(In thousands)
June 30,
 
June 30,
 
2017
 
2016
 
2017
 
2016
Service cost
$
6,474

 
$
6,248

 
$
12,945

 
$
12,485

Interest cost
6,236

 
7,709

 
12,455

 
15,412

Expected return on plan assets
(13,310
)
 
(13,590
)
 
(26,595
)
 
(27,171
)
Amortization of prior service cost
(26
)
 
(11
)
 
(51
)
 
(23
)
Amortization of unrecognized actuarial loss
3,585

 
3,093

 
7,166

 
6,186

Net periodic benefit cost
$
2,959


$
3,449


$
5,920


$
6,889

EARNINGS PER SHARE (Table)
Schedule of Earnings Per Share Reconciliation
A reconciliation of basic to diluted shares used in the earnings per share calculation is as follows:
 
 
Three Months Ended
 
Six Months Ended
(In thousands)
June 30,
 
June 30,
 
2017
 
2016
 
2017
 
2016
Basic weighted-average shares outstanding
44,213

 
44,487

 
44,221

 
44,526

Dilutive effect of stock options and deferred stock compensation
594

 
677

 
604

 
669

Diluted weighted-average shares outstanding
44,807

 
45,164

 
44,825

 
45,195

SEGMENT INFORMATION (Table)
Schedule Of Segment Reporting Information By Segment 
 
Three Months Ended
 
Six Months Ended
(In thousands)
June 30,
 
June 30,
 
2017
 
2016
 
2017
 
2016
Net sales
 
 
 
 
 
 
 
Commercial/Industrial
$
291,856

 
$
290,428

 
$
570,912

 
$
565,633

Defense
127,399

 
114,877

 
242,236

 
220,607

Power
149,970

 
129,123

 
280,565

 
252,869

Less: Intersegment revenues
(1,572
)
 
(1,662
)
 
(2,469
)
 
(2,836
)
Total consolidated
$
567,653

 
$
532,766

 
$
1,091,244

 
$
1,036,273

 
 
 
 
 
 
 
 
Operating income (expense)
 
 
 
 
 
 
 
Commercial/Industrial
$
43,693

 
$
38,957

 
$
74,314

 
$
69,009

Defense
21,187

 
18,609

 
32,342

 
35,454

Power
24,870

 
16,114

 
41,410

 
30,742

Corporate and eliminations (1)
(6,479
)
 
(5,591
)
 
(13,568
)
 
(9,853
)
Total consolidated
$
83,271

 
$
68,089

 
$
134,498

 
$
125,352


(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
 
Six Months Ended
(In thousands)
June 30,
 
June 30,
 
2017
 
2016
 
2017
 
2016
Total operating income
$
83,271

 
$
68,089

 
$
134,498

 
$
125,352

Interest expense
10,750

 
10,273

 
21,127

 
20,206

Other income, net
190

 
101

 
502

 
335

Earnings before income taxes
$
72,711

 
$
57,917

 
$
113,873

 
$
105,481

Reconciliation Of Assets From Segment To Consolidated 
(In thousands)
June 30, 2017
 
December 31, 2016
Identifiable assets
 
 
 
Commercial/Industrial
$
1,420,411

 
$
1,391,040

Defense
1,013,636

 
751,859

Power
517,053

 
516,321

Corporate and Other
170,174

 
378,561

Total consolidated
$
3,121,274

 
$
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 (1)
(64,840
)
 
(7,892
)
 
(72,732
)
Amounts reclassified from accumulated other comprehensive loss (1)
—

 
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 (1)
43,901

 
(507
)
 
43,394

Amounts reclassified from accumulated other comprehensive income (loss) (1)
—

 
4,201

 
4,201

Net current period other comprehensive income
43,901

 
3,694

 
47,595

June 30, 2017
$
(128,749
)
 
$
(115,412
)
 
$
(244,161
)


(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
379

 
(1)
Amortization of actuarial losses
(7,064
)
 
(1)
 
(6,685
)
 
Total before tax
 
2,484

 
Income tax
Total reclassifications
$
(4,201
)
 
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 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
 
 
Income Tax Expense (Benefit)
$ 22,061 
$ 17,954 
$ 30,676 
$ 32,699 
Accounting Standards Update 2016-09 [Member]
 
 
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
 
 
Income Tax Expense (Benefit)
$ 0 
 
$ 4,057 
 
ACQUISITIONS (Details) (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2017
Dec. 31, 2016
Jun. 30, 2017
2017 acquisitions [Member]
Business Acquisition [Line Items]
 
 
 
Accounts Receivable
 
 
$ 5,020 
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
 
 
7,163 
Due from Seller, Net
 
 
(509)
Net Tangible and Intangible Assets
 
 
116,363 
Purchase Price, Net of Cash Acquired
 
 
232,630 
Goodwill
1,082,944 
951,057 
116,267 
Goodwill, Expected Tax Deductible Amount
 
 
$ 116,267 
ACQUISITIONS Narrative (Details) (USD $)
6 Months Ended 0 Months Ended 6 Months Ended 0 Months Ended 6 Months Ended
Jun. 30, 2017
NumberAcquisitions
Jun. 30, 2016
Jun. 30, 2017
2017 acquisitions [Member]
Jan. 3, 2017
Defense [Member]
Teletronics Technology Corporation (TTC) [Member]
Jun. 30, 2017
Defense [Member]
Teletronics Technology Corporation (TTC) [Member]
Feb. 8, 2017
Commercial Industrial [Member]
Para Tech Coating, Inc (Para Tech) [Member]
Jun. 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 
 
$ 226,015,000 
 
 
Revenue Reported by Acquired Entity for Last Annual Period
 
 
 
 
64,000,000 
 
 
Payments to Acquire Businesses, Gross
232,630,000 
295,000 
 
 
 
 
6,615,000 
Revenue of Acquiree since Acquisition Date, Actual
25,000,000 
 
 
 
 
 
 
Earnings or Loss of Acquiree since Acquisition Date, Actual
$ (4,000,000)
 
 
 
 
 
 
RECEIVABLES (Detail) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2017
Dec. 31, 2016
Billed receivables:
 
 
Trade and other receivables
$ 374,691 
$ 340,091 
Less: Allowance for doubtful accounts
(7,219)
(4,832)
Net billed receivables
367,472 
335,259 
Unbilled receivables:
 
 
Recoverable costs and estimated earnings not billed
158,006 
149,847 
Less: Progress payments applied
(23,262)
(22,044)
Net unbilled receivables
134,744 
127,803 
Receivables, net
$ 502,216 
$ 463,062 
INVENTORIES (Detail) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2017
Dec. 31, 2016
Inventory, Net [Abstract]
 
 
Raw material
$ 195,461 
$ 189,228 
Work-in-process
85,321 
73,843 
Finished goods and component parts
123,362 
112,478 
Inventoried costs related to U.S. Government and other long-term contracts
60,008 
57,516 
Gross inventories
464,152 
433,065 
Less: Inventory reserves
58,108 
54,988 
Progress payments applied, principally related to long-term contracts
(9,799)
(11,103)
Inventories, net
$ 396,245 
$ 366,974 
INVENTORIES (Narrative) (Detail) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2017
Dec. 31, 2016
Inventory, Net [Abstract]
 
 
Other inventory, capitalized costs
$ 29.9 
$ 28.8 
Other inventory, capitalized costs to be liquidated under firm orders
$ 4.6 
$ 3.9 
GOODWILL (Detail) (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2017
Goodwill [Roll Forward]
 
December 31, 2016
$ 951,057 
Goodwill, Acquired During Period
116,267 
Foreign currency translation adjustment
15,620 
June 30, 2017
1,082,944 
Commercial Industrial [Member]
 
Goodwill [Roll Forward]
 
December 31, 2016
436,141 
Goodwill, Acquired During Period
2,420 
Foreign currency translation adjustment
6,468 
June 30, 2017
445,029 
Defense [Member]
 
Goodwill [Roll Forward]
 
December 31, 2016
327,655 
Goodwill, Acquired During Period
113,847 
Foreign currency translation adjustment
9,044 
June 30, 2017
450,546 
Power [Member]
 
Goodwill [Roll Forward]
 
December 31, 2016
187,261 
Foreign currency translation adjustment
108 
June 30, 2017
$ 187,369 
OTHER INTANGIBLE ASSETS, NET (Detail) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2017
Dec. 31, 2016
Finite Lived Intangible Assets [Line Items]
 
 
Gross
$ 644,608 
$ 553,310 
Accumulated Amortization
(298,617)
(281,849)
Net
345,991 
271,461 
Technology [Member]
 
 
Finite Lived Intangible Assets [Line Items]
 
 
Gross
240,858 
166,859 
Accumulated Amortization
(105,400)
(98,266)
Net
135,458 
68,593 
Customer Relationships [Member]
 
 
Finite Lived Intangible Assets [Line Items]
 
 
Gross
363,500 
349,742 
Accumulated Amortization
(168,351)
(157,154)
Net
195,149 
192,588 
Other Intangible Assets [Member]
 
 
Finite Lived Intangible Assets [Line Items]
 
 
Gross
40,250 
36,709 
Accumulated Amortization
(24,866)
(26,429)
Net
$ 15,384 
$ 10,280 
OTHER INTANGIBLE ASSETS, NET (Narrative) (Detail) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Finite Lived Intangible Assets [Line Items]
 
 
Finite-lived Intangible Assets Acquired
$ 88.9 
 
Amortization expense
19.1 
16.8 
Future amortization expense in remainder of fiscal year
38.7 
 
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 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
General And Administrative Expense [Member]
 
 
 
 
Derivative Instruments Gain Loss [Line Items]
 
 
 
 
General and administrative expenses
$ (93)
$ 4,452 
$ 614 
$ 5,036 
FAIR VALUE OF FINANCIAL INSTRUMENTS (Debt) (Detail) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2017
Dec. 31, 2016
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Carrying Value
$ 965,630 
$ 966,298 
Estimated Fair Value
1,000,341 
978,652 
Long-term Debt, Gross
950,820 
950,668 
Debt Issuance Costs, Net
(907)
(984)
Deferred Gain (Loss) on Discontinuation of Interest Rate Fair Value Hedge
15,717 
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
152,161 
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
104,107 
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
232,173 
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
103,389 
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
211,038 
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
77,685 
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
104,158 
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
820 
668 
Estimated Fair Value
820 
668 
Long-term Debt, gross [Member]
 
 
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
 
 
Estimated Fair Value
$ 985,531 
$ 963,022 
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Detail) (Pension Plans Defined Benefit [Member], USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Pension Plans Defined Benefit [Member]
 
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
Service cost
$ 6,474 
$ 6,248 
$ 12,945 
$ 12,485 
Interest cost
6,236 
7,709 
12,455 
15,412 
Expected return on plan assets
(13,310)
(13,590)
(26,595)
(27,171)
Amortization of prior service cost
(26)
(11)
(51)
(23)
Amortization of unrecognized actuarial loss
3,585 
3,093 
7,166 
6,186 
Net postretirement benefit cost (income)
$ 2,959 
$ 3,449 
$ 5,920 
$ 6,889 
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Additional) (Detail) (USD $)
In Millions, unless otherwise specified
6 Months Ended 12 Months Ended
Jun. 30, 2017
Jun. 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
$ 6.8 
$ 6.0 
 
Defined Contribution Plan, Employer Discretionary Contribution Amount
$ 9.4 
 
$ 11.8 
EARNINGS PER SHARE (Detail)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Earnings Per Share Reconciliation [Abstract]
 
 
 
 
Basic weighted-average shares outstanding (shares)
44,213 
44,487 
44,221 
44,526 
Dilutive effect of stock options and deferred stock compensation (shares)
594 
677 
604 
669 
Diluted weighted-average shares outstanding (shares)
44,807 
45,164 
44,825 
45,195 
EARNINGS PER SHARE EARNINGS PER SHARE (Anti-dilutive) (Details)
In Thousands, unless otherwise specified
3 Months Ended
Jun. 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 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Dec. 31, 2016
Segment Reporting Information [Line Items]
 
 
 
 
 
Net sales
$ 567,653 
$ 532,766 
$ 1,091,244 
$ 1,036,273 
 
Operating income (expense)
83,271 
68,089 
134,498 
125,352 
 
Identifiable assets
3,121,274 
 
3,121,274 
 
3,037,781 
Commercial Industrial [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Net sales
291,856 
290,428 
570,912 
565,633 
 
Operating income (expense)
43,693 
38,957 
74,314 
69,009 
 
Identifiable assets
1,420,411 
 
1,420,411 
 
1,391,040 
Defense [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Net sales
127,399 
114,877 
242,236 
220,607 
 
Operating income (expense)
21,187 
18,609 
32,342 
35,454 
 
Identifiable assets
1,013,636 
 
1,013,636 
 
751,859 
Power [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Net sales
149,970 
129,123 
280,565 
252,869 
 
Operating income (expense)
24,870 
16,114 
41,410 
30,742 
 
Identifiable assets
517,053 
 
517,053 
 
516,321 
Corporate, Non-Segment [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Operating income (expense)
(6,479)
(5,591)
(13,568)
(9,853)
 
Identifiable assets
170,174 
 
170,174 
 
378,561 
Intersegment Eliminations [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Net sales
$ (1,572)
$ (1,662)
$ (2,469)
$ (2,836)
 
SEGMENT INFORMATION (Reconciliation) (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Segment Reporting [Abstract]
 
 
 
 
Total operating income
$ 83,271 
$ 68,089 
$ 134,498 
$ 125,352 
Interest expense
(10,750)
(10,273)
(21,127)
(20,206)
Other income, net
190 
101 
502 
335 
Earnings before income taxes
$ 72,711 
$ 57,917 
$ 113,873 
$ 105,481 
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 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
 
 
43,394 
 
(72,732)
Amounts reclassified from accumulated other comprehensive loss
 
 
4,201 
 
6,904 
Other comprehensive income (loss), net of tax
34,420 
(30,126)
47,595 
(11,409)
(65,828)
Ending balance
(244,161)
 
(244,161)
 
(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
 
 
43,901 
 
(64,840)
Amounts reclassified from accumulated other comprehensive loss
 
 
0 
 
0 
Other comprehensive income (loss), net of tax
 
 
43,901 
 
(64,840)
Ending balance
(128,749)
 
(128,749)
 
(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
 
 
(507)
 
(7,892)
Amounts reclassified from accumulated other comprehensive loss
 
 
4,201 
 
6,904 
Other comprehensive income (loss), net of tax
 
 
3,694 
 
(988)
Ending balance
$ (115,412)
 
$ (115,412)
 
$ (119,106)
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Reclass) (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
Earnings from continuing operations before income taxes
$ 72,711 
$ 57,917 
$ 113,873 
$ 105,481 
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
 
 
379 
 
Amortization of actuarial losses
 
 
(7,064)
 
Earnings from continuing operations before income taxes
 
 
(6,685)
 
Income tax
 
 
2,484 
 
Net earnings
 
 
$ (4,201)
 
CONTINGENCIES AND COMMITMENTS (Detail) (USD $)
0 Months Ended
Jun. 30, 2017
Standby Letters Of Credit [Member]
Dec. 31, 2016
Standby Letters Of Credit [Member]
Jun. 30, 2017
FinancialStandbyLetterOfCreditMember
Dec. 31, 2016
FinancialStandbyLetterOfCreditMember
Oct. 10, 2013
Failure to Meet Contractual Obligations [Member]
Jun. 30, 2017
Surety Bond [Member]
Jun. 30, 2017
Damage from Fire, Explosion or Other Hazard [Member]
Jun. 30, 2017
Minimum [Member]
Jun. 30, 2017
Maximum [Member]
Mar. 29, 2017
Westinghouse Electric Company (WEC) [Member]
Pending Litigation [Member]
Jun. 30, 2017
AP1000 US [Member]
Minimum [Member]
Jun. 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
48,800,000 
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 
$ 56,000,000 
 
$ 0 
$ 31,000,000 
$ 6,500,000 
SUBSEQUENT EVENTS (Details) (Scenario, Forecast [Member], USD $)
0 Months Ended
Jul. 20, 2017
Sep. 30, 2017
Scenario, Forecast [Member]
 
 
Subsequent Event [Line Items]
 
 
Increase (Decrease) In Dividends Payable, per share
$ 0.02 
 
Increase (Decrease) In Dividends Payable, percentage
15.00% 
 
Dividends Payable, Amount Per Share
 
$ 0.15