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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Lincoln Electric Holdings Inc | NASDAQ:LECO | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
3.23 | 1.47% | 222.56 | 215.00 | 355.42 | 222.61 | 218.255 | 221.49 | 237,884 | 01:00:00 |
Ohio
|
|
34-1860551
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
|
|
|
22801 St. Clair Avenue, Cleveland, Ohio
|
|
44117
|
(Address of principal executive offices)
|
|
(Zip Code)
|
(216) 481-8100
|
(Registrant’s telephone number, including area code)
|
Not applicable
|
(Former name, former address and former fiscal year, if changed since last report)
|
Large accelerated filer
x
|
|
Accelerated filer
o
|
Non-accelerated filer
o
(Do not check if a smaller reporting company)
|
|
Smaller reporting company
o
|
|
Three Months Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
Net sales
|
$
|
550,722
|
|
|
$
|
657,900
|
|
Cost of goods sold
|
361,620
|
|
|
437,510
|
|
||
Gross profit
|
189,102
|
|
|
220,390
|
|
||
Selling, general & administrative expenses
|
113,810
|
|
|
129,891
|
|
||
Operating income
|
75,292
|
|
|
90,499
|
|
||
|
|
|
|
||||
Other income (expense):
|
|
|
|
|
|
||
Interest income
|
430
|
|
|
593
|
|
||
Equity earnings in affiliates
|
626
|
|
|
849
|
|
||
Other income
|
661
|
|
|
2,610
|
|
||
Interest expense
|
(3,827
|
)
|
|
(1,844
|
)
|
||
Total other income (expense)
|
(2,110
|
)
|
|
2,208
|
|
||
Income before income taxes
|
73,182
|
|
|
92,707
|
|
||
Income taxes
|
19,558
|
|
|
24,389
|
|
||
Net income including non-controlling interests
|
53,624
|
|
|
68,318
|
|
||
Non-controlling interests in subsidiaries’ loss
|
(14
|
)
|
|
(36
|
)
|
||
Net income
|
$
|
53,638
|
|
|
$
|
68,354
|
|
|
|
|
|
||||
Basic earnings per share
|
$
|
0.77
|
|
|
$
|
0.90
|
|
Diluted earnings per share
|
$
|
0.76
|
|
|
$
|
0.89
|
|
Cash dividends declared per share
|
$
|
0.32
|
|
|
$
|
0.29
|
|
|
Three Months Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
Net income including non-controlling interests
|
$
|
53,624
|
|
|
$
|
68,318
|
|
Other comprehensive income, net of tax:
|
|
|
|
|
|
||
Unrealized gain (loss) on derivatives designated and qualifying as cash flow hedges, net of tax of $(203) and $58 in the three months ended March 31, 2016 and 2015
|
836
|
|
|
1,100
|
|
||
Defined benefit pension plan activity, net of tax of $911 and $2,395 in the three months ended March 31, 2016 and 2015
|
1,618
|
|
|
3,538
|
|
||
Currency translation adjustment
|
24,249
|
|
|
(56,552
|
)
|
||
Other comprehensive income (loss)
|
26,703
|
|
|
(51,914
|
)
|
||
Comprehensive income
|
80,327
|
|
|
16,404
|
|
||
Comprehensive income (loss) attributable to non-controlling interests
|
1
|
|
|
(577
|
)
|
||
Comprehensive income attributable to shareholders
|
$
|
80,326
|
|
|
$
|
16,981
|
|
|
March 31, 2016
|
|
December 31, 2015
|
||||
|
(UNAUDITED)
|
|
(NOTE 1)
|
||||
ASSETS
|
|
|
|
|
|
||
Current Assets
|
|
|
|
|
|
||
Cash and cash equivalents
|
$
|
220,996
|
|
|
$
|
304,183
|
|
Accounts receivable (less allowance for doubtful accounts of $7,233 in 2016; $7,299 in 2015)
|
286,120
|
|
|
264,715
|
|
||
Inventories:
|
|
|
|
|
|
||
Raw materials
|
86,314
|
|
|
87,919
|
|
||
Work-in-process
|
44,355
|
|
|
39,555
|
|
||
Finished goods
|
162,040
|
|
|
148,456
|
|
||
Total inventory
|
292,709
|
|
|
275,930
|
|
||
Other current assets
|
102,522
|
|
|
91,167
|
|
||
Total Current Assets
|
902,347
|
|
|
935,995
|
|
||
|
|
|
|
||||
Property, Plant and Equipment
|
|
|
|
|
|
||
Land
|
46,821
|
|
|
45,775
|
|
||
Buildings
|
362,426
|
|
|
362,325
|
|
||
Machinery and equipment
|
718,062
|
|
|
696,849
|
|
||
Property, plant and equipment
|
1,127,309
|
|
|
1,104,949
|
|
||
Less accumulated depreciation
|
713,483
|
|
|
693,626
|
|
||
Property, Plant and Equipment, Net
|
413,826
|
|
|
411,323
|
|
||
Goodwill
|
190,596
|
|
|
187,504
|
|
||
Non-current assets
|
270,326
|
|
|
249,349
|
|
||
TOTAL ASSETS
|
$
|
1,777,095
|
|
|
$
|
1,784,171
|
|
|
|
|
|
||||
LIABILITIES AND EQUITY
|
|
|
|
|
|
||
Current Liabilities
|
|
|
|
|
|
||
Short-term debt
|
$
|
24,844
|
|
|
$
|
4,278
|
|
Trade accounts payable
|
159,590
|
|
|
152,620
|
|
||
Other current liabilities
|
217,021
|
|
|
213,224
|
|
||
Total Current Liabilities
|
401,455
|
|
|
370,122
|
|
||
|
|
|
|
||||
Long-Term Liabilities
|
|
|
|
|
|
||
Long-term debt, less current portion
|
350,106
|
|
|
350,347
|
|
||
Other long-term liabilities
|
132,865
|
|
|
131,254
|
|
||
Total Long-Term Liabilities
|
482,971
|
|
|
481,601
|
|
||
|
|
|
|
||||
Shareholders’ Equity
|
|
|
|
|
|
||
Common shares
|
9,858
|
|
|
9,858
|
|
||
Additional paid-in capital
|
276,853
|
|
|
272,908
|
|
||
Retained earnings
|
2,157,330
|
|
|
2,125,838
|
|
||
Accumulated other comprehensive loss
|
(269,579
|
)
|
|
(296,267
|
)
|
||
Treasury shares
|
(1,282,655
|
)
|
|
(1,180,750
|
)
|
||
Total Shareholders’ Equity
|
891,807
|
|
|
931,587
|
|
||
Non-controlling interests
|
862
|
|
|
861
|
|
||
Total Equity
|
892,669
|
|
|
932,448
|
|
||
|
|
|
|
||||
TOTAL LIABILITIES AND EQUITY
|
$
|
1,777,095
|
|
|
$
|
1,784,171
|
|
|
Three Months Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
||
Net income
|
$
|
53,638
|
|
|
$
|
68,354
|
|
Non-controlling interests in subsidiaries’ loss
|
(14
|
)
|
|
(36
|
)
|
||
Net income including non-controlling interests
|
53,624
|
|
|
68,318
|
|
||
Adjustments to reconcile Net income including non-controlling interests to Net cash
provided by operating activities:
|
|
|
|
|
|
||
Rationalization and asset impairment charges
|
—
|
|
|
30
|
|
||
Depreciation and amortization
|
15,625
|
|
|
16,032
|
|
||
Equity earnings in affiliates, net
|
(2
|
)
|
|
(216
|
)
|
||
Deferred income taxes
|
(4,238
|
)
|
|
(16,886
|
)
|
||
Stock-based compensation
|
2,154
|
|
|
1,957
|
|
||
Pension expense
|
4,144
|
|
|
5,679
|
|
||
Pension contributions and payments
|
(20,865
|
)
|
|
(21,234
|
)
|
||
Other, net
|
5
|
|
|
(3,633
|
)
|
||
Changes in operating assets and liabilities, net of effects from acquisitions:
|
|
|
|
|
|
||
Increase in accounts receivable
|
(16,592
|
)
|
|
(25,377
|
)
|
||
Increase in inventories
|
(10,780
|
)
|
|
(16,233
|
)
|
||
(Increase) decrease in other current assets
|
(10,546
|
)
|
|
25,657
|
|
||
Increase (decrease) in trade accounts payable
|
4,657
|
|
|
(12,916
|
)
|
||
Increase in other current liabilities
|
7,635
|
|
|
29,412
|
|
||
Net change in other long-term assets and liabilities
|
(460
|
)
|
|
2,194
|
|
||
NET CASH PROVIDED BY OPERATING ACTIVITIES
|
24,361
|
|
|
52,784
|
|
||
|
|
|
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
||
Capital expenditures
|
(8,885
|
)
|
|
(12,456
|
)
|
||
Proceeds from sale of property, plant and equipment
|
458
|
|
|
1,187
|
|
||
Other investing activities
|
—
|
|
|
2,024
|
|
||
NET CASH USED BY INVESTING ACTIVITIES
|
(8,427
|
)
|
|
(9,245
|
)
|
||
|
|
|
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
||
Proceeds from short-term borrowings
|
1,295
|
|
|
1,517
|
|
||
Payments on short-term borrowings
|
(563
|
)
|
|
(4,774
|
)
|
||
Amounts due banks, net
|
21,055
|
|
|
104,370
|
|
||
Proceeds from long-term borrowings
|
224
|
|
|
2,500
|
|
||
Payments on long-term borrowings
|
(255
|
)
|
|
(2,103
|
)
|
||
Proceeds from exercise of stock options
|
2,015
|
|
|
1,733
|
|
||
Excess tax benefits from stock-based compensation
|
357
|
|
|
537
|
|
||
Purchase of shares for treasury
|
(102,488
|
)
|
|
(102,853
|
)
|
||
Cash dividends paid to shareholders
|
(22,625
|
)
|
|
(22,329
|
)
|
||
Other financing activities
|
(3,806
|
)
|
|
(20
|
)
|
||
NET CASH USED BY FINANCING ACTIVITIES
|
(104,791
|
)
|
|
(21,422
|
)
|
||
|
|
|
|
||||
Effect of exchange rate changes on Cash and cash equivalents
|
5,670
|
|
|
(11,479
|
)
|
||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
(83,187
|
)
|
|
10,638
|
|
||
|
|
|
|
||||
Cash and cash equivalents at beginning of period
|
304,183
|
|
|
278,379
|
|
||
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
$
|
220,996
|
|
|
$
|
289,017
|
|
|
Three Months Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
Numerator:
|
|
|
|
|
|
||
Net income
|
$
|
53,638
|
|
|
$
|
68,354
|
|
Denominator:
|
|
|
|
|
|
||
Basic weighted average shares outstanding
(in 000's)
|
69,585
|
|
|
76,242
|
|
||
Effect of dilutive securities - Stock options and awards
(in 000's)
|
661
|
|
|
817
|
|
||
Diluted weighted average shares outstanding
(in 000's)
|
70,246
|
|
|
77,059
|
|
||
Basic earnings per share
|
$
|
0.77
|
|
|
$
|
0.90
|
|
Diluted earnings per share
|
$
|
0.76
|
|
|
$
|
0.89
|
|
|
Americas Welding
|
|
International Welding
|
|
The Harris
Products
Group
|
|
Corporate /
Eliminations
|
|
Consolidated
|
||||||||||
Three Months Ended March 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net sales
|
$
|
359,008
|
|
|
$
|
124,305
|
|
|
$
|
67,409
|
|
|
$
|
—
|
|
|
$
|
550,722
|
|
Inter-segment sales
|
23,831
|
|
|
4,426
|
|
|
2,303
|
|
|
(30,560
|
)
|
|
—
|
|
|||||
Total
|
$
|
382,839
|
|
|
$
|
128,731
|
|
|
$
|
69,712
|
|
|
$
|
(30,560
|
)
|
|
$
|
550,722
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
EBIT, as adjusted
|
$
|
61,438
|
|
|
$
|
6,233
|
|
|
$
|
7,711
|
|
|
$
|
1,197
|
|
|
$
|
76,579
|
|
Special items charge (gain)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
EBIT
|
$
|
61,438
|
|
|
$
|
6,233
|
|
|
$
|
7,711
|
|
|
$
|
1,197
|
|
|
$
|
76,579
|
|
Interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
430
|
|
|||||
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
(3,827
|
)
|
||||||
Income before income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
73,182
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Three months ended March 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net sales
|
$
|
448,837
|
|
|
$
|
139,247
|
|
|
$
|
69,816
|
|
|
$
|
—
|
|
|
$
|
657,900
|
|
Inter-segment sales
|
23,023
|
|
|
5,027
|
|
|
2,011
|
|
|
(30,061
|
)
|
|
—
|
|
|||||
Total
|
$
|
471,860
|
|
|
$
|
144,274
|
|
|
$
|
71,827
|
|
|
$
|
(30,061
|
)
|
|
$
|
657,900
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
EBIT, as adjusted
|
$
|
75,415
|
|
|
$
|
10,934
|
|
|
$
|
7,549
|
|
|
$
|
60
|
|
|
$
|
93,958
|
|
Special items charge (gain)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
EBIT
|
$
|
75,415
|
|
|
$
|
10,934
|
|
|
$
|
7,549
|
|
|
$
|
60
|
|
|
$
|
93,958
|
|
Interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
593
|
|
|||||
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,844
|
)
|
|||||
Income before income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
92,707
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
Americas Welding
|
|
International Welding
|
|
Consolidated
|
||||||
Balance, December 31, 2015
|
$
|
67
|
|
|
$
|
7,598
|
|
|
$
|
7,665
|
|
Payments and other adjustments
|
(67
|
)
|
|
(425
|
)
|
|
(492
|
)
|
|||
Charged to expense
|
—
|
|
|
—
|
|
|
—
|
|
|||
Balance, March 31, 2016
|
$
|
—
|
|
|
$
|
7,173
|
|
|
$
|
7,173
|
|
|
Shareholders’
Equity
|
|
Non-controlling
Interests
|
|
Total Equity
|
||||||
Balance, December 31, 2015
|
$
|
931,587
|
|
|
$
|
861
|
|
|
$
|
932,448
|
|
Comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|||
Net income (loss)
|
53,638
|
|
|
(14
|
)
|
|
53,624
|
|
|||
Other comprehensive income
|
26,688
|
|
|
15
|
|
|
26,703
|
|
|||
Total comprehensive income
|
80,326
|
|
|
1
|
|
|
80,327
|
|
|||
|
|
|
|
|
|
||||||
Cash dividends declared - $0.32 per share
|
(22,145
|
)
|
|
—
|
|
|
(22,145
|
)
|
|||
Issuance of shares under benefit plans
|
4,527
|
|
|
—
|
|
|
4,527
|
|
|||
Purchase of shares for treasury
|
(102,488
|
)
|
|
—
|
|
|
(102,488
|
)
|
|||
Balance, March 31, 2016
|
$
|
891,807
|
|
|
$
|
862
|
|
|
$
|
892,669
|
|
|
|
Three Months Ended March 31, 2016
|
|||||||||||||||||
|
|
Unrealized gain (loss) on derivatives designated and qualifying as cash flow hedges
|
|
Defined benefit pension plan activity
|
|
Currency translation adjustment
|
|
Total
|
|||||||||||
Balance at December 31, 2015
|
|
$
|
548
|
|
|
$
|
(99,776
|
)
|
|
$
|
(197,039
|
)
|
|
$
|
(296,267
|
)
|
|||
Other comprehensive income (loss)
before reclassification |
|
1,699
|
|
|
(20
|
)
|
|
24,234
|
|
3
|
|
25,913
|
|
||||||
Amounts reclassified from AOCI
|
|
(863
|
)
|
1
|
|
1,638
|
|
2
|
|
—
|
|
|
775
|
|
|||||
Net current-period other
comprehensive income (loss) |
|
836
|
|
|
1,618
|
|
|
24,234
|
|
|
26,688
|
|
|||||||
Balance at March 31, 2016
|
|
$
|
1,384
|
|
|
$
|
(98,158
|
)
|
|
$
|
(172,805
|
)
|
|
$
|
(269,579
|
)
|
|||
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
Three Months Ended March 31, 2015
|
|||||||||||||||||
|
|
Unrealized gain (loss) on derivatives designated and qualifying as cash flow hedges
|
|
Defined benefit pension plan activity
|
|
Currency translation adjustment
|
|
Total
|
|||||||||||
Balance at December 31, 2014
|
|
$
|
(9
|
)
|
|
$
|
(197,893
|
)
|
|
$
|
(90,720
|
)
|
|
$
|
(288,622
|
)
|
|||
Other comprehensive income (loss)
before reclassification |
|
1,322
|
|
|
—
|
|
|
(56,011
|
)
|
3
|
|
(54,689
|
)
|
||||||
Amounts reclassified from AOCI
|
|
(222
|
)
|
1
|
|
3,538
|
|
2
|
|
—
|
|
|
3,316
|
|
|||||
Net current-period other
comprehensive income (loss) |
|
1,100
|
|
|
3,538
|
|
|
(56,011
|
)
|
|
(51,373
|
)
|
|||||||
Balance at March 31, 2015
|
|
$
|
1,091
|
|
|
$
|
(194,355
|
)
|
|
$
|
(146,731
|
)
|
|
$
|
(339,995
|
)
|
|||
|
|
|
|
|
|
|
|
|
1
|
During the
2016
period, this AOCI reclassification is a component of Net sales of
$(787)
(net of tax of
$(278)
) and Cost of goods sold of
$(76)
(net of tax of
$22
); during the
2015
period, the reclassification is a component of Net sales of
$(529)
(net of tax of
$(249)
) and Cost of goods sold of
$307
(net of tax of
$202
). (See Note 14 - Derivatives for additional details.)
|
2
|
This AOCI component is included in the computation of net periodic pension costs (net of tax of
$911
and
$2,395
during the three months ended
March 31, 2016
and
2015
, respectively). (See Note 12 - Retirement and Postretirement Benefit Plans for additional details.)
|
3
|
The Other comprehensive income (loss) before reclassifications excludes
$15
and
$(541)
attributable to Non-controlling interests in the three months ended
March 31, 2016
and
2015
, respectively.
|
|
Three Months Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
Balance at December 31
|
$
|
19,469
|
|
|
$
|
15,579
|
|
Accruals for warranties
|
3,035
|
|
|
2,979
|
|
||
Settlements
|
(3,063
|
)
|
|
(3,209
|
)
|
||
Foreign currency translation
|
147
|
|
|
(271
|
)
|
||
Balance at March 31
|
$
|
19,588
|
|
|
$
|
15,078
|
|
|
Amount
|
|
Maturity Date
|
|
Interest Rate
|
|||
Series A
|
$
|
100,000
|
|
|
August 20, 2025
|
|
3.15
|
%
|
Series B
|
100,000
|
|
|
August 20, 2030
|
|
3.35
|
%
|
|
Series C
|
50,000
|
|
|
April 1, 2035
|
|
3.61
|
%
|
|
Series D
|
100,000
|
|
|
April 1, 2045
|
|
4.02
|
%
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2016
|
|
2015
|
||||
Service cost
|
|
$
|
4,430
|
|
|
$
|
5,422
|
|
Interest cost
|
|
6,011
|
|
|
10,331
|
|
||
Expected return on plan assets
|
|
(8,864
|
)
|
|
(15,738
|
)
|
||
Amortization of prior service cost
|
|
(99
|
)
|
|
(156
|
)
|
||
Amortization of net loss
|
|
2,666
|
|
|
5,820
|
|
||
Defined benefit plans
|
|
4,144
|
|
|
5,679
|
|
||
Multi-employer plans
|
|
202
|
|
|
217
|
|
||
Defined contribution plans
|
|
1,969
|
|
|
3,016
|
|
||
Total pension cost
|
|
$
|
6,315
|
|
|
$
|
8,912
|
|
|
|
March 31, 2016
|
|
December 31, 2015
|
||||||||||||
Derivatives by hedge designation
|
|
Other Current Assets
|
|
Other Current Liabilities
|
|
Other Current Assets
|
|
Other Current Liabilities
|
||||||||
Designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign exchange contracts
|
|
$
|
1,268
|
|
|
$
|
708
|
|
|
$
|
178
|
|
|
$
|
731
|
|
Not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
||||||||
Foreign exchange contracts
|
|
9,821
|
|
|
2,021
|
|
|
625
|
|
|
2,303
|
|
||||
Commodity contracts
|
|
3
|
|
|
32
|
|
|
40
|
|
|
8
|
|
||||
Total derivatives
|
|
$
|
11,092
|
|
|
$
|
2,761
|
|
|
$
|
843
|
|
|
$
|
3,042
|
|
|
|
|
|
Three Months Ended March 31,
|
||||||
Derivatives by hedge designation
|
|
Classification of gain (loss)
|
|
2016
|
|
2015
|
||||
Not designated as hedges:
|
|
|
|
|
|
|
||||
Foreign exchange contracts
|
|
Selling, general & administrative expenses
|
|
$
|
3,597
|
|
|
$
|
(9,604
|
)
|
Commodity contracts
|
|
Cost of goods sold
|
|
(369
|
)
|
|
(144
|
)
|
Total gain (loss) recognized in AOCI, net of tax
|
|
March 31, 2016
|
|
December 31, 2015
|
||||
Foreign exchange contracts
|
|
$
|
285
|
|
|
$
|
(551
|
)
|
Net investment contracts
|
|
1,099
|
|
|
1,099
|
|
|
|
|
|
Three Months Ended March 31,
|
||||||
Derivative type
|
|
Gain (loss) reclassified from AOCI to:
|
|
2016
|
|
2015
|
||||
Foreign exchange contracts
|
|
Sales
|
|
$
|
(787
|
)
|
|
$
|
(529
|
)
|
|
|
Cost of goods sold
|
|
(76
|
)
|
|
307
|
|
Description
|
|
Balance as of
March 31, 2016 |
|
Quoted Prices
in Active
Markets for
Identical Assets
or Liabilities
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign exchange contracts
|
|
$
|
11,089
|
|
|
$
|
—
|
|
|
$
|
11,089
|
|
|
$
|
—
|
|
Commodity contracts
|
|
3
|
|
|
—
|
|
|
3
|
|
|
—
|
|
||||
Total assets
|
|
$
|
11,092
|
|
|
$
|
—
|
|
|
$
|
11,092
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign exchange contracts
|
|
$
|
2,729
|
|
|
$
|
—
|
|
|
$
|
2,729
|
|
|
$
|
—
|
|
Commodity contracts
|
|
32
|
|
|
—
|
|
|
32
|
|
|
—
|
|
||||
Contingent consideration
|
|
1,761
|
|
|
—
|
|
|
—
|
|
|
1,761
|
|
||||
Forward contract
|
|
28,543
|
|
|
—
|
|
|
—
|
|
|
28,543
|
|
||||
Deferred compensation
|
|
24,127
|
|
|
—
|
|
|
24,127
|
|
|
—
|
|
||||
Total liabilities
|
|
$
|
57,192
|
|
|
$
|
—
|
|
|
$
|
26,888
|
|
|
$
|
30,304
|
|
Description
|
|
Balance as of December 31, 2015
|
|
Quoted Prices
in Active
Markets for
Identical Assets
or Liabilities
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign exchange contracts
|
|
$
|
803
|
|
|
$
|
—
|
|
|
$
|
803
|
|
|
$
|
—
|
|
Commodity contracts
|
|
40
|
|
|
—
|
|
|
40
|
|
|
—
|
|
||||
Total assets
|
|
$
|
843
|
|
|
$
|
—
|
|
|
$
|
843
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign exchange contracts
|
|
$
|
3,034
|
|
|
$
|
—
|
|
|
$
|
3,034
|
|
|
$
|
—
|
|
Commodity contracts
|
|
8
|
|
|
—
|
|
|
8
|
|
|
—
|
|
||||
Contingent considerations
|
|
9,184
|
|
|
—
|
|
|
—
|
|
|
9,184
|
|
||||
Forward contract
|
|
26,484
|
|
|
—
|
|
|
—
|
|
|
26,484
|
|
||||
Deferred compensation
|
|
23,201
|
|
|
—
|
|
|
23,201
|
|
|
—
|
|
||||
Total liabilities
|
|
$
|
61,911
|
|
|
$
|
—
|
|
|
$
|
26,243
|
|
|
$
|
35,668
|
|
|
|
Three Months Ended March 31,
|
|||||||||||||||||||
|
|
2016
|
|
2015
|
|
Change
|
|||||||||||||||
|
|
Amount
|
|
% of Sales
|
|
Amount
|
|
% of Sales
|
|
Amount
|
|
%
|
|||||||||
Net sales
|
|
$
|
550,722
|
|
|
100.0
|
%
|
|
$
|
657,900
|
|
|
100.0
|
%
|
|
$
|
(107,178
|
)
|
|
(16.3
|
%)
|
Cost of goods sold
|
|
361,620
|
|
|
65.7
|
%
|
|
437,510
|
|
|
66.5
|
%
|
|
(75,890
|
)
|
|
(17.3
|
%)
|
|||
Gross profit
|
|
189,102
|
|
|
34.3
|
%
|
|
220,390
|
|
|
33.5
|
%
|
|
(31,288
|
)
|
|
(14.2
|
%)
|
|||
Selling, general & administrative expenses
|
|
113,810
|
|
|
20.7
|
%
|
|
129,891
|
|
|
19.7
|
%
|
|
(16,081
|
)
|
|
(12.4
|
%)
|
|||
Operating income
|
|
75,292
|
|
|
13.7
|
%
|
|
90,499
|
|
|
13.8
|
%
|
|
(15,207
|
)
|
|
(16.8
|
%)
|
|||
Interest income
|
|
430
|
|
|
0.1
|
%
|
|
593
|
|
|
0.1
|
%
|
|
(163
|
)
|
|
(27.5
|
%)
|
|||
Equity earnings in affiliates
|
|
626
|
|
|
0.1
|
%
|
|
849
|
|
|
0.1
|
%
|
|
(223
|
)
|
|
(26.3
|
%)
|
|||
Other income
|
|
661
|
|
|
0.1
|
%
|
|
2,610
|
|
|
0.4
|
%
|
|
(1,949
|
)
|
|
(74.7
|
%)
|
|||
Interest expense
|
|
(3,827
|
)
|
|
(0.7
|
%)
|
|
(1,844
|
)
|
|
(0.3
|
%)
|
|
(1,983
|
)
|
|
(107.5
|
%)
|
|||
Income before income taxes
|
|
73,182
|
|
|
13.3
|
%
|
|
92,707
|
|
|
14.1
|
%
|
|
(19,525
|
)
|
|
(21.1
|
%)
|
|||
Income taxes
|
|
19,558
|
|
|
3.6
|
%
|
|
24,389
|
|
|
3.7
|
%
|
|
(4,831
|
)
|
|
(19.8
|
%)
|
|||
Net income including non-controlling interests
|
|
53,624
|
|
|
9.7
|
%
|
|
68,318
|
|
|
10.4
|
%
|
|
(14,694
|
)
|
|
(21.5
|
%)
|
|||
Non-controlling interests in subsidiaries’ loss
|
|
(14
|
)
|
|
—
|
|
|
(36
|
)
|
|
—
|
|
|
22
|
|
|
61.1
|
%
|
|||
Net income
|
|
$
|
53,638
|
|
|
9.7
|
%
|
|
$
|
68,354
|
|
|
10.4
|
%
|
|
$
|
(14,716
|
)
|
|
(21.5
|
%)
|
|
|
|
Change in Net Sales due to:
|
|
|
||||||||||||||||||
|
Net Sales
2015
|
|
Volume
|
|
Acquisitions
|
|
Price
|
|
Foreign
Exchange
|
|
Net Sales
2016
|
||||||||||||
Operating Segments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Americas Welding
|
$
|
448,837
|
|
|
$
|
(85,063
|
)
|
|
$
|
6,977
|
|
|
$
|
80,320
|
|
|
$
|
(92,063
|
)
|
|
$
|
359,008
|
|
International Welding
|
139,247
|
|
|
(9,822
|
)
|
|
3,465
|
|
|
(3,105
|
)
|
|
(5,480
|
)
|
|
124,305
|
|
||||||
The Harris Products Group
|
69,816
|
|
|
1,390
|
|
|
—
|
|
|
(2,404
|
)
|
|
(1,393
|
)
|
|
67,409
|
|
||||||
Consolidated
|
$
|
657,900
|
|
|
$
|
(93,495
|
)
|
|
$
|
10,442
|
|
|
$
|
74,811
|
|
|
$
|
(98,936
|
)
|
|
$
|
550,722
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated (excluding Venezuela)
|
$
|
635,021
|
|
|
$
|
(79,236
|
)
|
|
$
|
10,442
|
|
|
$
|
(6,490
|
)
|
|
$
|
(13,995
|
)
|
|
$
|
545,742
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Americas Welding
|
|
|
|
(19.0
|
%)
|
|
1.6
|
%
|
|
17.9
|
%
|
|
(20.5
|
%)
|
|
(20.0
|
%)
|
||||||
International Welding
|
|
|
|
(7.1
|
%)
|
|
2.5
|
%
|
|
(2.2
|
%)
|
|
(3.9
|
%)
|
|
(10.7
|
%)
|
||||||
The Harris Products Group
|
|
|
|
2.0
|
%
|
|
—
|
|
|
(3.4
|
%)
|
|
(2.0
|
%)
|
|
(3.4
|
%)
|
||||||
Consolidated
|
|
|
|
(14.2
|
%)
|
|
1.6
|
%
|
|
11.4
|
%
|
|
(15.0
|
%)
|
|
(16.3
|
%)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated (excluding Venezuela)
|
|
|
(12.5
|
%)
|
|
1.6
|
%
|
|
(1.0
|
%)
|
|
(2.2
|
%)
|
|
(14.1
|
%)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
||||||||
|
2016
|
|
2015
|
|
$ Change
|
|
% Change
|
||||||
Americas Welding:
|
|
|
|
|
|
|
|
|
|
|
|
||
Net sales
|
$
|
359,008
|
|
|
$
|
448,837
|
|
|
(89,829
|
)
|
|
(20.0
|
%)
|
Inter-segment sales
|
23,831
|
|
|
23,023
|
|
|
808
|
|
|
3.5
|
%
|
||
Total Sales
|
$
|
382,839
|
|
|
$
|
471,860
|
|
|
(89,021
|
)
|
|
(18.9
|
%)
|
|
|
|
|
|
|
|
|
||||||
EBIT, as adjusted
|
$
|
61,438
|
|
|
$
|
75,415
|
|
|
(13,977
|
)
|
|
(18.5
|
%)
|
As a percent of total sales
|
16.0
|
%
|
|
16.0
|
%
|
|
|
|
|
—
|
|
||
International Welding:
|
|
|
|
|
|
|
|
|
|
|
|
||
Net sales
|
$
|
124,305
|
|
|
$
|
139,247
|
|
|
(14,942
|
)
|
|
(10.7
|
%)
|
Inter-segment sales
|
4,426
|
|
|
5,027
|
|
|
(601
|
)
|
|
(12.0
|
%)
|
||
Total Sales
|
$
|
128,731
|
|
|
$
|
144,274
|
|
|
(15,543
|
)
|
|
(10.8
|
%)
|
|
|
|
|
|
|
|
|
||||||
EBIT, as adjusted
|
$
|
6,233
|
|
|
$
|
10,934
|
|
|
(4,701
|
)
|
|
(43.0
|
%)
|
As a percent of total sales
|
4.8
|
%
|
|
7.6
|
%
|
|
|
|
|
(2.8
|
%)
|
||
The Harris Products Group:
|
|
|
|
|
|
|
|
|
|
|
|
||
Net sales
|
$
|
67,409
|
|
|
$
|
69,816
|
|
|
(2,407
|
)
|
|
(3.4
|
%)
|
Inter-segment sales
|
2,303
|
|
|
2,011
|
|
|
292
|
|
|
14.5
|
%
|
||
Total Sales
|
$
|
69,712
|
|
|
$
|
71,827
|
|
|
(2,115
|
)
|
|
(2.9
|
%)
|
|
|
|
|
|
|
|
|
||||||
EBIT, as adjusted
|
$
|
7,711
|
|
|
$
|
7,549
|
|
|
162
|
|
|
2.1
|
%
|
As a percent of total sales
|
11.1
|
%
|
|
10.5
|
%
|
|
|
|
|
0.6
|
%
|
|
Three Months Ended March 31,
|
||||||||||
|
2016
|
|
2015
|
|
Change
|
||||||
Cash provided by operating activities
|
$
|
24,361
|
|
|
$
|
52,784
|
|
|
$
|
(28,423
|
)
|
Cash used by investing activities
|
(8,427
|
)
|
|
(9,245
|
)
|
|
818
|
|
|||
Capital expenditures
|
(8,885
|
)
|
|
(12,456
|
)
|
|
3,571
|
|
|||
Proceeds from sale of property, plant and equipment
|
458
|
|
|
1,187
|
|
|
(729
|
)
|
|||
Other investing activities
|
—
|
|
|
2,024
|
|
|
(2,024
|
)
|
|||
Cash used by financing activities
|
(104,791
|
)
|
|
(21,422
|
)
|
|
(83,369
|
)
|
|||
Proceeds from short-term borrowings, net
|
21,787
|
|
|
101,113
|
|
|
(79,326
|
)
|
|||
(Payments on) proceeds from long-term borrowings, net
|
(31
|
)
|
|
397
|
|
|
(428
|
)
|
|||
Proceeds from exercise of stock options
|
2,015
|
|
|
1,733
|
|
|
282
|
|
|||
Excess tax benefits from stock-based compensation
|
357
|
|
|
537
|
|
|
(180
|
)
|
|||
Purchase of shares for treasury
|
(102,488
|
)
|
|
(102,853
|
)
|
|
365
|
|
|||
Cash dividends paid to shareholders
|
(22,625
|
)
|
|
(22,329
|
)
|
|
(296
|
)
|
|||
Other financing activities
|
(3,806
|
)
|
|
(20
|
)
|
|
(3,786
|
)
|
|||
(Decrease) increase in Cash and cash equivalents
|
(83,187
|
)
|
|
10,638
|
|
|
|
|
|
March 31, 2016
|
|
December 31, 2015
|
|
March 31, 2015
|
|||
Net operating working capital to net sales
1
|
|
19.0
|
%
|
|
17.1
|
%
|
|
19.1
|
%
|
Days sales in Total inventory
|
|
103.9
|
|
89.2
|
|
99.8
|
|||
Days sales in Accounts receivable
|
|
51.3
|
|
46.9
|
|
50.9
|
|||
Average days in Trade accounts payable
|
|
44.8
|
|
38.7
|
|
44.4
|
|
|
Twelve Months Ended March 31,
|
||||||
Return on Invested Capital
|
|
2016
|
|
2015
|
||||
Net income
|
|
$
|
112,762
|
|
|
$
|
266,587
|
|
Rationalization and asset impairment charges (gains)
|
|
18,181
|
|
|
30,920
|
|
||
Venezuela currency devaluation
|
|
27,214
|
|
|
3,468
|
|
||
Pension settlement charges
|
|
87,310
|
|
|
—
|
|
||
Noncontrolling interests
|
|
—
|
|
|
(805
|
)
|
||
Adjusted net income
|
|
$
|
245,467
|
|
|
$
|
300,170
|
|
Plus: Interest expense (after-tax)
|
|
14,693
|
|
|
6,608
|
|
||
Less: Interest income (after-tax)
|
|
1,574
|
|
|
1,711
|
|
||
Adjusted net income before tax effected interest
|
|
$
|
258,586
|
|
|
$
|
305,067
|
|
|
|
|
|
|
||||
Invested Capital
|
|
March 31, 2016
|
|
March 31, 2015
|
||||
Short-term debt
|
|
$
|
24,844
|
|
|
$
|
167,985
|
|
Long-term debt
|
|
350,106
|
|
|
3,882
|
|
||
Total debt
|
|
374,950
|
|
|
171,867
|
|
||
Total equity
|
|
892,669
|
|
|
1,179,955
|
|
||
Invested capital
|
|
$
|
1,267,619
|
|
|
$
|
1,351,822
|
|
Return on invested capital
|
|
20.4
|
%
|
|
22.6
|
%
|
Period
|
|
Total Number of
Shares Repurchased
|
|
Average Price
Paid Per Share
|
|
Total Number of
Shares Repurchased
as Part of Publicly
Announced Plans or
Programs
|
|
Maximum Number of
Shares that May Yet be
Purchased Under the
Plans or Programs
(2) (3)
|
|||||
January 1 - 31, 2016
|
|
847,109
|
|
|
$
|
49.15
|
|
|
847,109
|
|
|
3,900,812
|
|
February 1 - 29, 2016
|
|
476,091
|
|
(1)
|
53.34
|
|
|
476,079
|
|
|
3,424,733
|
|
|
March 1 - 31, 2016
|
|
622,217
|
|
|
56.99
|
|
|
622,217
|
|
|
2,802,516
|
|
|
Total
|
|
1,945,417
|
|
|
52.68
|
|
|
1,945,405
|
|
|
|
(1)
|
The above share repurchases include the surrender of the Company's common shares in connection with the vesting of restricted awards.
|
(2)
|
In July 2013, the Company's Board of Directors authorized a new share repurchase program, which increased the total number of the Company’s common shares authorized to be repurchased to
45 million
shares. Total shares purchased through the share repurchase programs were
42,197,484
shares at a total cost of
$1.4 billion
for a weighted average cost of
$33.18
per share through
March 31, 2016
.
|
(3)
|
In April 2016, the Company's Board of Directors authorized a new share repurchase program for up to an additional 10 million of the Company's common shares.
|
31.1
|
|
Certification of the Chairman, President and Chief Executive Officer (Principal Executive Officer) pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934.
|
31.2
|
|
Certification of the Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer) pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934.
|
32.1
|
|
Certification of the Chairman, President and Chief Executive Officer (Principal Executive Officer) and Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer) pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
101.INS
|
|
XBRL Instance Document
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
LINCOLN ELECTRIC HOLDINGS, INC.
|
|
|
|
|
|
/s/ Geoffrey P. Allman
|
|
|
Geoffrey P. Allman
|
|
|
Senior Vice President, Corporate Controller
|
|
|
(principal accounting officer)
|
|
|
April 22, 2016
|
1 Year Lincoln Electric Chart |
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