SEC Filings

10-Q
LINCOLN ELECTRIC HOLDINGS INC filed this Form 10-Q on 10/30/2017
Entire Document
 
LINCOLN ELECTRIC HOLDINGS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Dollars in thousands, except per share amounts

The effects of undesignated derivative instruments on the Company’s Consolidated Statements of Operations for the three and nine months ended September 30, 2017 and 2016 consisted of the following:
 
 
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
Derivatives by hedge designation
 
Classification of gain (loss)
 
2017
 
2016
 
2017
 
2016
Not designated as hedges:
 
 
 
 

 
 

 
 
 
 
Foreign exchange contracts
 
Selling, general & administrative expenses
 
$
1,788

 
$
(2,952
)
 
$
23,031

 
$
(9,862
)
Commodity contracts
 
Cost of goods sold
 

 

 

 
(742
)
The effects of designated hedges on AOCI and the Company’s Consolidated Statements of Operations consisted of the following:
Total gain (loss) recognized in AOCI, net of tax
 
September 30, 2017
 
December 31, 2016
Foreign exchange contracts
 
$
51

 
$
(512
)
Net investment contracts
 
1,099

 
1,099

The Company expects a gain of $51 related to existing contracts to be reclassified from AOCI, net of tax, to earnings over the next 12 months as the hedged transactions are realized. 
 
 
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
Derivative type
 
Gain (loss) reclassified from AOCI to:
 
2017
 
2016
 
2017
 
2016
Foreign exchange contracts
 
Sales
 
$
968

 
$
(174
)
 
$
1,580

 
$
(1,113
)
 
 
Cost of goods sold
 
162

 
(171
)
 
530

 
(401
)

NOTE 14 - FAIR VALUE
The following table provides a summary of assets and liabilities as of September 30, 2017, measured at fair value on a recurring basis:
Description
 
Balance as of
September 30, 2017
 
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
 
$
1,300

 
$

 
$
1,300

 
$

Marketable securities
 
179,284

 

 
179,284

 

Total assets
 
$
180,584

 
$

 
$
180,584

 
$

 
 
 
 
 
 
 
 
 
Liabilities:
 
 

 
 

 
 

 
 

Foreign exchange contracts
 
$
2,896

 
$

 
$
2,896

 
$

Interest rate swap agreements
 
4,476

 

 
4,476

 

Contingent considerations
 
7,067

 

 

 
7,067

Deferred compensation
 
28,227

 

 
28,227

 

Total liabilities
 
$
42,666

 
$

 
$
35,599

 
$
7,067


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