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Document and Entity Information	6 Months Ended
Document and Entity Information	Jun. 30, 2019 shares
Cover page.
Title of 12(b) Security	Common Shares, without par value
Entity Address, State or Province	OH
Entity Tax Identification Number	34-1860551
Entity Registrant Name	LINCOLN ELECTRIC HOLDINGS INC
Entity Address, Address Line One	22801 St. Clair Avenue
City Area Code	216
Local Phone Number	481-8100
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Central Index Key	0000059527
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2019
Document Transition Report	false
Entity File Number	0-1402
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Common Stock, Shares Outstanding	61,779,153
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Trading Symbol	LECO
Entity Address, Postal Zip Code	44117
Entity Address, City or Town	Cleveland
Entity Address, State or Province	OH
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Net sales (Note 2)	$ 777,008	$ 790,052	$ 1,536,182	$ 1,547,748
Cost of goods sold	507,127	519,936	1,007,880	1,021,078
Gross profit	269,881	270,116	528,302	526,670
Selling, general & administrative expenses	163,388	163,940	323,796	325,131
Restructuring, Settlement and Impairment Provisions	1,307	11,542	4,842	21,717
Operating income	105,186	94,634	199,664	179,822
Interest Income (Expense), Net	(5,898)	(4,812)	(11,221)	(9,253)
Other income (expense) (Note 14)	4,196	4,441	7,959	7,892
Income before income taxes	103,484	94,263	196,402	178,461
Income taxes (Note 15)	18,040	25,404	39,492	48,782
Net income including non-controlling interests	85,444	68,859	156,910	129,679
Non-controlling interests in subsidiaries’ earnings (loss)	(8)	(5)	(22)	(9)
Net income	$ 85,452	$ 68,864	$ 156,932	$ 129,688
Basic earnings (loss) per share (in dollars per share)	$ 1.37	$ 1.05	$ 2.50	$ 1.98
Diluted earnings (loss) per share (in dollars per share)	1.36	1.04	2.47	1.96
Cash dividends declared per share (in dollars per share)	$ 0.47	$ 0.39	$ 0.94	$ 0.78

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Statement of Comprehensive Income [Abstract]
Net income including non-controlling interests	$ 85,444	$ 68,859	$ 156,910	$ 129,679
Other comprehensive income (loss), net of tax:
Unrealized gain (loss) on derivatives designated and qualifying as cash flow hedges, net of tax of $(117) and $(60) in the three and six months ended June 30, 2019; $(309) and $25 in the three and six months ended June 30, 2018.	(301)	(1,232)	28	(377)
Defined benefit pension plan activity, net of tax of $(90) and $137 in the three and six months ended June 30, 2019; $218 and $649 in the three and six months ended June 30, 2018.	1,091	721	1,878	2,008
Currency translation adjustment	4,849	(50,342)	9,985	(30,955)
Other comprehensive income (loss):	5,639	(50,853)	11,891	(29,324)
Comprehensive income	91,083	18,006	168,801	100,355
Comprehensive income (loss) attributable to non-controlling interests	(43)	(95)	(20)	(40)
Comprehensive income attributable to shareholders	$ 91,126	$ 18,101	$ 168,821	$ 100,395

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Unrealized gain (loss) on derivatives designated and qualifying as cash flow hedges, tax (benefit)	$ (117)	$ (309)	$ (60)	$ 25
Unrecognized amounts from defined benefit pension plans, tax benefit (expense)	$ (90)	$ 218	$ 137	$ 649

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
ASSETS
Cash and cash equivalents	$ 189,861	$ 358,849
Accounts receivable (less allowance for doubtful accounts of $12,678 in 2019; $12,827 in 2018)	428,353	396,885
Inventories (Note 9)	397,752	361,829
Other current assets	111,897	120,236
Total Current Assets	1,127,863	1,237,799
Property, plant and equipment (less accumulated depreciation of $800,287 in 2019; $778,817 in 2018)	512,364	478,801
Goodwill	323,016	281,294
Other assets	431,090	351,931
TOTAL ASSETS	2,394,333	2,349,825
LIABILITIES AND EQUITY
Short-term debt (Note 12)	30,110	111
Trade accounts payable	254,814	268,600
Accrued employee compensation and benefits	115,891	94,202
Other current liabilities	170,196	175,269
Total Current Liabilities	571,011	538,182
Long-Term Liabilities
Long-term debt, less current portion (Note 12)	710,458	702,549
Other liabilities	266,806	221,502
Total Liabilities	1,548,275	1,462,233
Shareholders’ Equity
Common shares	9,858	9,858
Additional paid-in capital	368,919	360,308
Retained earnings	2,661,720	2,564,440
Accumulated other comprehensive loss	(281,850)	(293,739)
Treasury shares	(1,913,219)	(1,753,925)
Total Shareholders’ Equity	845,428	886,942
Non-controlling interests	630	650
Total Equity	846,058	887,592
TOTAL LIABILITIES AND TOTAL EQUITY	$ 2,394,333	$ 2,349,825

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 12,678	$ 12,827
Accumulated depreciation	$ 800,287	$ 778,817

CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Treasury Stock [Member]	Noncontrolling Interests
Beginning balance at Dec. 31, 2017	$ 932,453	$ 9,858	$ 334,309	$ 2,388,219	$ (247,186)	$ (1,553,563)	$ 816
Beginning Balance (in shares) at Dec. 31, 2017		65,663,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income including non-controlling interests	60,820			60,824			(4)
Unrecognized amounts from defined benefit pension plans, net of tax	1,287				1,287
Unrealized gain (loss) on derivatives designated and qualifying as cash flow hedges, net of tax	855				855
Currency translation adjustment	19,387				19,328		59
Cash dividends declared - $0.47 per share and $0.39 per share in 2019 and 2018, respectively	(25,787)			(25,787)
Stock-based compensation activity		55,000
Issuance of shares under benefit plans	6,381		5,819			562
Purchase of treasury shares	(14,724)					(14,724)
Purchase of shares for treasury (in shares)		(159,000)
Stockholders' Equity, Other	0		5,483	(5,483)
Ending balance at Mar. 31, 2018	980,672	$ 9,858	345,611	2,417,773	(225,716)	(1,567,725)	871
Ending Balance (in shares) at Mar. 31, 2018		65,559,000
Beginning balance at Dec. 31, 2017	932,453	$ 9,858	334,309	2,388,219	(247,186)	(1,553,563)	816
Beginning Balance (in shares) at Dec. 31, 2017		65,663,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income including non-controlling interests	129,679
Unrecognized amounts from defined benefit pension plans, net of tax	2,008
Unrealized gain (loss) on derivatives designated and qualifying as cash flow hedges, net of tax	(377)
Currency translation adjustment	(30,955)
Ending balance at Jun. 30, 2018	943,508	$ 9,858	351,632	2,461,130	(276,479)	(1,603,409)	776
Ending Balance (in shares) at Jun. 30, 2018		65,172,000
Beginning balance at Mar. 31, 2018	980,672	$ 9,858	345,611	2,417,773	(225,716)	(1,567,725)	871
Beginning Balance (in shares) at Mar. 31, 2018		65,559,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income including non-controlling interests	68,859			68,864			(5)
Unrecognized amounts from defined benefit pension plans, net of tax	721				721
Unrealized gain (loss) on derivatives designated and qualifying as cash flow hedges, net of tax	(1,232)				(1,232)
Currency translation adjustment	(50,342)				(50,252)		(90)
Cash dividends declared - $0.47 per share and $0.39 per share in 2019 and 2018, respectively	(25,701)			(25,701)
Stock-based compensation activity		15,000
Issuance of shares under benefit plans	6,039		6,215			(176)
Purchase of treasury shares	(35,508)					(35,508)
Purchase of shares for treasury (in shares)		(402,000)
Stockholders' Equity, Other	0		(194)	194
Ending balance at Jun. 30, 2018	943,508	$ 9,858	351,632	2,461,130	(276,479)	(1,603,409)	776
Ending Balance (in shares) at Jun. 30, 2018		65,172,000
Beginning balance at Dec. 31, 2018	887,592	$ 9,858	360,308	2,564,440	(293,739)	(1,753,925)	650
Beginning Balance (in shares) at Dec. 31, 2018		63,546,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income including non-controlling interests	71,466			71,480			(14)
Unrecognized amounts from defined benefit pension plans, net of tax	787				787
Unrealized gain (loss) on derivatives designated and qualifying as cash flow hedges, net of tax	329				329
Currency translation adjustment	5,136				5,099		37
Cash dividends declared - $0.47 per share and $0.39 per share in 2019 and 2018, respectively	(29,847)			(29,847)
Stock-based compensation activity		148,000
Issuance of shares under benefit plans	4,786		3,302			1,484
Purchase of treasury shares	(75,584)					(75,584)
Purchase of shares for treasury (in shares)		(894,000)
Stockholders' Equity, Other	0		808	(808)
Ending balance at Mar. 31, 2019	864,665	$ 9,858	364,418	2,605,265	(287,524)	(1,828,025)	673
Ending Balance (in shares) at Mar. 31, 2019		62,800,000
Beginning balance at Dec. 31, 2018	887,592	$ 9,858	360,308	2,564,440	(293,739)	(1,753,925)	650
Beginning Balance (in shares) at Dec. 31, 2018		63,546,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income including non-controlling interests	156,910
Unrecognized amounts from defined benefit pension plans, net of tax	1,878
Unrealized gain (loss) on derivatives designated and qualifying as cash flow hedges, net of tax	28
Currency translation adjustment	$ 9,985
Purchase of shares for treasury (in shares)	(1,900,000)
Ending balance at Jun. 30, 2019	$ 846,058	$ 9,858	368,919	2,661,720	(281,850)	(1,913,219)	630
Ending Balance (in shares) at Jun. 30, 2019		61,779,000
Beginning balance at Mar. 31, 2019	864,665	$ 9,858	364,418	2,605,265	(287,524)	(1,828,025)	673
Beginning Balance (in shares) at Mar. 31, 2019		62,800,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income including non-controlling interests	85,444			85,452			(8)
Unrecognized amounts from defined benefit pension plans, net of tax	1,091				1,091
Unrealized gain (loss) on derivatives designated and qualifying as cash flow hedges, net of tax	(301)				(301)
Currency translation adjustment	4,849				4,884		(35)
Cash dividends declared - $0.47 per share and $0.39 per share in 2019 and 2018, respectively	(29,279)			(29,279)
Stock-based compensation activity		13,000
Issuance of shares under benefit plans	4,919		4,783			136
Purchase of treasury shares	$ (85,330)					(85,330)
Purchase of shares for treasury (in shares)	(1,000,000.0)	(1,034,000)
Stockholders' Equity, Other	$ 0		(282)	282
Ending balance at Jun. 30, 2019	$ 846,058	$ 9,858	$ 368,919	$ 2,661,720	$ (281,850)	$ (1,913,219)	$ 630
Ending Balance (in shares) at Jun. 30, 2019		61,779,000

CONSOLIDATED STATEMENTS OF EQUITY CONSOLIDATED STATEMENTS OF EQUITY (parenthetical) - $ / shares	3 Months Ended				6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018
Statement of Stockholders' Equity [Abstract]
Cash dividends declared per share (in dollars per share)	$ 0.47	$ 0.47	$ 0.39	$ 0.39	$ 0.94	$ 0.78

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 156,932	$ 129,688
Non-controlling interests in subsidiaries’ earnings (loss)	(22)	(9)
Net income including non-controlling interests	156,910	129,679
Adjustments to reconcile Net income including non-controlling interests to Net cash provided by operating activities:
Rationalization and asset impairment net charges (Note 6)	1,069	626
Depreciation and amortization	39,252	36,323
Equity earnings in affiliates, net	(1,217)	(1,377)
Deferred income taxes	2,674	4,969
Stock-based compensation	8,745	9,821
Other, net	(5,700)	(8,142)
Changes in operating assets and liabilities, net of effects from acquisitions:
Increase in accounts receivable	(21,271)	(39,907)
Increase in inventories	(27,767)	(27,899)
Decrease (increase) in other current assets	11,135	(13,839)
(Decrease) increase in trade accounts payable	(15,469)	4,861
Increase in other current liabilities	2,812	26,223
Net change in other assets and liabilities	812	2,220
NET CASH PROVIDED BY OPERATING ACTIVITIES	151,985	123,558
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(36,513)	(31,383)
Payments to Acquire Businesses, Net of Cash Acquired	(107,843)	6,591
Proceeds from sale of property, plant and equipment	8,712	227
Purchase of marketable securities	0	(218,667)
Proceeds from marketable securities	0	258,733
Other Investing Activities	2,000	0
NET CASH (USED BY) PROVIDED BY INVESTING ACTIVITIES	(133,644)	15,501
CASH FLOWS FROM FINANCING ACTIVITIES
Amounts due banks, net	29,982	216
Payments on long-term borrowings	(5)	(6)
Proceeds from exercise of stock options	960	2,599
Purchase of shares for treasury (Note 8)	(160,914)	(50,232)
Cash dividends paid to shareholders	(60,101)	(51,250)
NET CASH USED BY FINANCING ACTIVITIES	(190,078)	(98,673)
Effect of Exchange Rate on Cash and Cash Equivalents	2,749	(9,993)
Cash and Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect	(168,988)	30,393
Cash and Cash Equivalents, Beginning Balance	358,849	326,701
Cash and Cash Equivalents, Ending Balance	$ 189,861	$ 357,094

BASIS OF PRESENTATION

6 Months Ended

Jun. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BASIS OF PRESENTATION

SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

As used in this report, the term “Company,” except as otherwise indicated by the context, means Lincoln Electric Holdings, Inc. and its wholly-owned and majority-owned subsidiaries for which it has a controlling interest.

The consolidated financial statements include the accounts of all legal entities in which the Company holds a controlling interest. The Company is also considered to have a controlling interest in a variable interest entity (“VIE”) if the Company determines it is the primary beneficiary of the VIE. Investments in legal entities in which the Company does not own a majority interest but has the ability to exercise significant influence over operating and financial policies are accounted for using the equity method.

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these unaudited consolidated financial statements do not include all of the information and notes required by GAAP for complete financial statements. However, in the opinion of management, these unaudited consolidated financial statements contain all the adjustments (consisting of normal recurring accruals) considered necessary to present fairly the financial position, results of operations and cash flows for the interim periods. Operating results for the six months ended June 30, 2019 are not necessarily indicative of the results to be expected for the year ending December 31, 2019.

The accompanying Consolidated Balance Sheet at December 31, 2018 has been derived from the audited financial statements at that date, but does not include all of the information and notes required by GAAP for complete financial statements. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

New Accounting Pronouncements:

This section provides a description of new accounting pronouncements ("Accounting Standard Update" or "ASU") issued by the Financial Accounting Standards Board ("FASB") that are applicable to the Company.

The following ASUs were adopted as of January 1, 2019:



Standard	Description
ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220), issued February 2018.	ASU 2018-02 allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act (the "U.S. Tax Act"). The ASU only applies to the income tax effects of the U.S. Tax Act; all other existing guidance remains the same. The Company has elected not to reclassify the income tax effects of the U.S. Tax Act from Accumulated other comprehensive loss to Retained earnings.
ASU No. 2016-02, Leases (Topic 842), issued February 2016	ASU 2016-02 ("Topic 842") aims to increase transparency and comparability among organizations by recognizing a right-of-use asset and lease liability on the balance sheet for all leases with a lease term greater than twelve months. Topic 842 also requires the disclosure of key information about leasing agreements. The Company adopted Topic 842 using the modified retrospective transition option of applying the new standard at the adoption date. The Company also elected the package of practical expedients, which among other things, allows it to not reassess the identification, classification and initial direct costs of leases commencing before the effective date of Topic 842. Refer to Note 10 to the consolidated financial statements for further details.

The Company is currently evaluating the impact on its financial statements of the following ASUs:



Standard	Description
ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20), issued August 2018.	ASU 2018-14 modifies disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The ASU also requires an entity to disclose the weighted-average interest crediting rates for cash balance plans and to explain the reasons for significant gains and losses related to changes in the benefit obligation. The ASU is effective January 1, 2020 and early adoption is permitted.
ASU No. 2018-13, Fair Value Measurement (Topic 944), issued August 2018.	ASU 2018-13 eliminates, amends and adds disclosure requirements related to fair value measurements. The ASU impacts various elements of fair value disclosure, including but not limited to, changes in unrealized gains or losses, significant unobservable inputs and measurement uncertainty. The ASU is effective January 1, 2020 and early adoption is permitted.
ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326), issued June 2016.	ASU 2016-13 requires that an entity measure impairment of certain financial instruments, including trade receivables, based on expected losses rather than incurred losses. The ASU is effective January 1, 2020 and early adoption is permitted.

REVENUE RECOGNITION

6 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

REVENUE RECOGNITION

The following table presents the Company's Net sales disaggregated by product line:



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Consumables	$	444,850	$	461,040	$	887,808	$	902,931
Equipment	332,158		329,012		648,374		644,817
Net sales	$	777,008	$	790,052	$	1,536,182	$	1,547,748

Consumable sales consist of electrodes, fluxes, specialty welding consumables and brazing and soldering alloys. Equipment sales consist of arc welding power sources, welding accessories, fabrication, plasma cutters, wire feeding systems, robotic welding packages, integrated automation systems, automation components, fume extraction equipment, CNC plasma and oxy-fuel cutting systems and regulators and torches used in oxy-fuel welding, cutting and brazing. Consumable and Equipment products are sold within each of the Company’s operating segments.

Substantially all of the Company's sales arrangements are short-term in nature involving a single performance obligation. The Company recognizes revenue when the performance obligation is satisfied and control of the product is transferred to the customer based upon shipping terms.

Within the Equipment product line, there are certain customer contracts related to automation products that may include multiple performance obligations. For such arrangements, the Company allocates revenue to each performance obligation based on its relative standalone selling price. The Company generally determines the standalone selling price based on the prices charged to customers or using expected cost plus margin. In addition, certain customized automation performance obligations within the Equipment product line, are accounted for over time. Under this method, revenue recognition is primarily based upon the ratio of costs incurred to date compared with estimated total costs to complete. The cumulative impact of revisions to total estimated costs is reflected in the period of the change, including anticipated losses. Less than 10% of the Company's Net sales are recognized over time.

At June 30, 2019, the Company recorded $20,730 related to advance customer payments and $8,752 related to billings in excess of revenue recognized. These contract liabilities are included in Other current liabilities in the Condensed Consolidated Balance Sheets. At December 31, 2018, the balances related to advance customer payments and billings in excess of revenue recognized were $17,023 and $17,013, respectively. Substantially all of the Company’s contract liabilities are recognized within twelve months based on contract duration. The Company records an asset for contracts where it has recognized revenue, but has not yet invoiced the customer for goods or services. At June 30, 2019 and December 31, 2018, $32,705 and $25,032, respectively, related to these future customer receivables was included in Other current assets in the Condensed Consolidated Balance Sheets. Contract asset amounts are expected to be billed within the next twelve months.

EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2019

Earnings Per Share [Abstract]

EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share:



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Numerator:
Net income	$	85,452	$	68,864	$	156,932	$	129,688
Denominator (shares in 000's):
Basic weighted average shares outstanding	62,305		65,337		62,733		65,458
Effect of dilutive securities - Stock options and awards	665		784		686		799
Diluted weighted average shares outstanding	62,970		66,121		63,419		66,257
Basic earnings per share	$	1.37	$	1.05	$	2.50	$	1.98
Diluted earnings per share	$	1.36	$	1.04	$	2.47	$	1.96

For the three months ended June 30, 2019 and 2018, common shares subject to equity-based awards of 548,049 and 346,168, respectively, were excluded from the computation of diluted earnings per share because the effect of their exercise would be anti-dilutive. For the six months ended June 30, 2019 and 2018, common shares subject to equity-based awards of 346,168 and 303,207, respectively, were excluded from the computation of diluted earnings per share because the effect of their exercise would be anti-dilutive.

ACQUISITIONS	6 Months Ended
ACQUISITIONS	Jun. 30, 2019
Business Combinations [Abstract]
ACQUISITIONS	ACQUISITIONS During July 2019, the Company acquired the controlling stake of Kaynak Tekniği Sanayi ve Ticaret A.Ş. (“Askaynak”). Askaynak is a supplier and manufacturer of welding consumables, arc welding equipment, including plasma and oxy-fuel cutting equipment, and robotic welding systems located in Turkey. The acquisition advances the Company's regional growth strategy in Europe, the Middle East and Africa. During April 2019, the Company acquired Baker Industries, Inc. ("Baker"). Baker, based in Detroit, Michigan, is a provider of custom tooling, parts and fixtures primarily serving automotive and aerospace markets. The acquisition compliments the Company's automation portfolio and its metal additive manufacturing service business. During December 2018, the Company acquired the soldering business of Worthington Industries (“Worthington”). The Worthington business, based in Winston Salem, North Carolina, broadens The Harris Products Group’s portfolio of industry-leading consumables with the addition of premium solders and fluxes. Also during December 2018, the Company acquired Coldwater Machine Company (“Coldwater”) and Pro Systems. Coldwater, based in Coldwater, Ohio, is a flexible automation integrator and precision machining and assembly manufacturer serving diverse end markets. Pro Systems, based in Churubusco, Indiana, is an automation systems designer and integrator serving automotive, industrial, electrical and medical applications. The acquisitions accelerate growth and expand the Company’s industry-leading portfolio of automated cutting and joining solutions. Also during December 2018, the Company acquired Inovatech Engineering Corporation (“Inovatech”). Inovatech, based in Ontario, Canada, is a manufacturer of advanced robotic plasma cutting solutions for structural steel applications. The acquisition scales the Company's automated cutting solutions and application expertise and supports long-term growth in that market. Pro forma information related to the acquisitions discussed above has not been presented because the impact on the Company’s Consolidated Statements of Income is not material. Acquired companies are included in the Company's consolidated financial statements as of the date of acquisition.

SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

SEGMENT INFORMATION

The Company's business units are aligned into three operating segments. The operating segments consist of Americas Welding, International Welding and The Harris Products Group. The Americas Welding segment includes welding operations in North and South America. The International Welding segment includes welding operations in Europe, Africa, Asia and Australia. The Harris Products Group includes the Company’s global cutting, soldering and brazing businesses as well as its retail business in the United States.

Segment performance is measured and resources are allocated based on a number of factors, the primary measure being the adjusted earnings before interest and income taxes (“Adjusted EBIT”) profit measure. EBIT is defined as Operating income plus Other income (expense). EBIT is adjusted for special items as determined by management such as the impact of rationalization activities, certain asset impairment charges and gains or losses on disposals of assets.

The following table presents Adjusted EBIT by segment:



	Americas Welding		International Welding			The Harris Products Group		Corporate / Eliminations			Consolidated
Three Months Ended June 30, 2019
Net sales	$	476,607	$	212,306		$	88,095	$	—		$	777,008
Inter-segment sales	34,811		4,188			2,113		(41,112		)	—
Total	$	511,418	$	216,494		$	90,208	$	(41,112	)	$	777,008

Adjusted EBIT	$	84,851	$	15,178		$	13,488	$	(3,969	)	$	109,548
Special items charge (gain) ⁽¹⁾	1,779		(2,627		)	—		1,014			166
EBIT	$	83,072	$	17,805		$	13,488	$	(4,983	)	$	109,382
Interest income											592
Interest expense											(6,490		)
Income before income taxes											$	103,484
Three Months Ended June 30, 2018
Net sales	$	462,515	$	243,373		$	84,164	$	—		$	790,052
Inter-segment sales	31,240		5,497			2,003		(38,740		)	—
Total	$	493,755	$	248,870		$	86,167	$	(38,740	)	$	790,052

Adjusted EBIT	$	88,158	$	16,276		$	10,157	$	(3,186	)	$	111,405
Special items charge (gain) ⁽²⁾	—		11,542			—		788			12,330
EBIT	$	88,158	$	4,734		$	10,157	$	(3,974	)	$	99,075
Interest income											1,808
Interest expense											(6,620		)
Income before income taxes											$	94,263
Six Months Ended June 30, 2019
Net sales	$	934,326	$	430,392		$	171,464	$	—		$	1,536,182
Inter-segment sales	64,199		8,397			3,980		(76,576		)	—
Total	$	998,525	$	438,789		$	175,444	$	(76,576	)	$	1,536,182

Adjusted EBIT	$	166,603	$	28,515		$	24,007	$	(7,011	)	$	212,114
Special items charge (gain) ⁽¹⁾	3,115		(428		)	—		1,804			4,491
EBIT	$	163,488	$	28,943		$	24,007	$	(8,815	)	$	207,623
Interest income											1,556
Interest expense											(12,777		)
Income before income taxes											$	196,402
Six Months Ended June 30, 2018
Net sales	$	897,287	$	490,693		$	159,768	$	—		$	1,547,748
Inter-segment sales	57,826		10,006			3,910		(71,742		)	—
Total	$	955,113	$	500,699		$	163,678	$	(71,742	)	$	1,547,748

Adjusted EBIT	$	165,597	$	31,249		$	19,382	$	(3,344	)	$	212,884
Special items charge (gain) ⁽²⁾	758		21,717			—		2,695			25,170
EBIT	$	164,839	$	9,532		$	19,382	$	(6,039	)	$	187,714
Interest income											3,280
Interest expense											(12,533		)
Income before income taxes											$	178,461


(1)	In the three months ended June 30, 2019, special items reflect Rationalization and asset impairment charges of $380 in Americas Welding and $927 in International Welding, amortization of step up in value of acquired inventories of $1,399

in Americas Welding, gains on disposal of assets of $3,554 in International Welding and transaction and integration costs of $1,014 in Corporate / Eliminations related to the Air Liquide Welding acquisition. In the six months ended June 30, 2019, special items reflect Rationalization and asset impairment charges of $1,716 in Americas Welding and $3,126 in International Welding, amortization of step up in value of acquired inventories of $1,399 in Americas Welding, gains on disposals of assets of $3,554 in International Welding and transaction and integration costs of $1,804 in Corporate / Eliminations related to the Air Liquide Welding acquisition.

(2)

In the three months ended June 30, 2018, special items reflect rationalization and asset impairment charges of $11,542 in International Welding and transaction and integration costs of $788 in Corporate / Eliminations related to the Air Liquide Welding acquisition. In the six months ended June 30, 2018, special items reflect pension settlement charges of $758 in Americas Welding, Rationalization and asset impairment charges of $21,717 in International Welding and transaction and integration costs of $2,695 in Corporate / Eliminations related to the Air Liquide Welding acquisition.

RATIONALIZATION AND ASSET IMPAIRMENTS

6 Months Ended

Jun. 30, 2019

Restructuring and Related Activities [Abstract]

RATIONALIZATION AND ASSET IMPAIRMENTS

The Company recorded rationalization and asset impairment net charges of $4,842 in the six months ended June 30, 2019. The 2019 charges are primarily related to employee severance, asset impairments and gains or losses on the disposal of assets.

During 2019, the Company initiated rationalization plans within International Welding. The plans include headcount restructuring and the consolidation of manufacturing operations to better align the cost structure with economic conditions and operating needs. At June 30, 2019, liabilities of $1,583 were recognized in Other current liabilities in the Company's Condensed Consolidated Balance Sheet.

During 2018, the Company initiated rationalization plans within International Welding. The plans include headcount restructuring and the consolidation of manufacturing operations to better align the cost structure with economic conditions and operating needs. At June 30, 2019, liabilities of $1,553 were recognized in Other current liabilities in the Company's Condensed Consolidated Balance Sheet.

The Company believes the rationalization actions will positively impact future results of operations and will not have a material effect on liquidity and sources and uses of capital. The Company continues to evaluate its cost structure and additional rationalization actions may result in charges in future periods.

The following table summarizes the activity related to rationalization liabilities:



	Six Months Ended June 30, 2019
Balance, December 31, 2018	$	11,192
Payments and other adjustments	(10,769		)
Charged to expense	3,773
Balance, June 30, 2019	$	4,196

ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Notes)

6 Months Ended

Jun. 30, 2019

ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME

Comprehensive Income (Loss) Note [Text Block]

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) ("AOCI")

The following tables set forth the total changes in accumulated other comprehensive income (loss) ("AOCI") by component, net of taxes, for the three months ended June 30, 2019 and 2018:



	Three Months Ended June 30, 2019
	Unrealized gain (loss) on derivatives designated and qualifying as cash flow hedges				Defined benefit pension plan activity				Currency translation adjustment				Total
Balance at March 31, 2019	$	2,023			$	(81,262	)		$	(208,285	)		$	(287,524	)
Other comprehensive income (loss) before reclassification	107				—				4,884			³	4,991
Amounts reclassified from AOCI	(408		)	¹	1,091			²	—				683
Net current-period other comprehensive income (loss)	(301		)		1,091				4,884				5,674
Balance at June 30, 2019	$	1,722			$	(80,171	)		$	(203,401	)		$	(281,850	)

	Three Months Ended June 30, 2018
	Unrealized gain (loss) on derivatives designated and qualifying as cash flow hedges				Defined benefit pension plan activity				Currency translation adjustment				Total
Balance at March 31, 2018	$	1,730			$	(83,990	)		$	(143,456	)		$	(225,716	)
Other comprehensive income (loss) before reclassification	(1,241		)		—				(50,252		)	³	(51,493		)
Amounts reclassified from AOCI	9			¹	721			²	—				730
Net current-period other comprehensive income (loss)	(1,232		)		721				(50,252		)		(50,763		)
Balance at June 30, 2018	$	498			$	(83,269	)		$	(193,708	)		$	(276,479	)


(1)	During the 2019 period, this AOCI reclassification is a component of Net sales of $286 (net of tax of $101) and Cost of goods sold of $(122) (net of tax of $(30)); during the 2018 period, the reclassification is a component of Net sales of $(23) (net of tax of $(14)) and Cost of goods sold of $(14) (net of tax of $(6)). See Note 16 to the consolidated financial statements for additional details.


(2)	This AOCI component is included in the computation of net periodic pension costs (net of tax of $(90) and $218 during the three months ended June 30, 2019 and 2018, respectively). See Note 13 to the consolidated financial statements for additional details.


(3)	The Other comprehensive income (loss) before reclassifications excludes $(35) and $(90) attributable to Non-controlling interests in the three months ended June 30, 2019 and 2018, respectively.

The following tables set forth the total changes in accumulated other comprehensive income (loss) ("AOCI") by component, net of taxes, for the six months ended June 30, 2019 and 2018:



	Six Months Ended June 30, 2019
	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, 2018	$	1,694			$	(82,049	)		$	(213,384	)		$	(293,739	)
Other comprehensive income (loss) before reclassification	789				—				9,983			³	10,772
Amounts reclassified from AOCI	(761		)	¹	1,878			²	—				1,117
Net current-period other comprehensive income (loss)	28				1,878				9,983				11,889
Balance at June 30, 2019	$	1,722			$	(80,171	)		$	(203,401	)		$	(281,850	)

	Six Months Ended June 30, 2018
	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, 2017	$	875			$	(85,277	)		$	(162,784	)		$	(247,186	)
Other comprehensive income (loss) before reclassification	(231		)		—				(30,924		)	³	(31,155		)
Amounts reclassified from AOCI	(146		)	¹	2,008			²	—				1,862
Net current-period other comprehensive income (loss)	(377		)		2,008				(30,924		)		(29,293		)
Balance at June 30, 2018	$	498			$	(83,269	)		$	(193,708	)		$	(276,479	)


(1)	During the 2019 period, this AOCI reclassification is a component of Net sales of $572 (net of tax of $203) and Cost of goods sold of $(189) (net of tax of $(60)); during the 2018 period, the reclassification is a component of Net sales of $112 (net of tax of $(6)) and Cost of goods sold of $(34) (net of tax of $(19)). See Note 16 to the consolidated financial statements for additional details.


(2)	This AOCI component is included in the computation of net periodic pension costs (net of tax of $137 and $649 during the six months ended June 30, 2019 and 2018, respectively). See Note 13 to the consolidated financial statements for additional details.

(3)

The Other comprehensive income (loss) before reclassifications excludes $2 and $(31) attributable to Non-controlling interests in the six months ended June 30, 2019 and 2018, respectively.

COMMON STOCK REPURCHASE PROGRAM	6 Months Ended
COMMON STOCK REPURCHASE PROGRAM	Jun. 30, 2019
COMMON STOCK REPURCHASE PROGRAM [Abstract]
Common Share Repurchase Program [Text Block]	COMMON STOCK REPURCHASE PROGRAMThe Company has a share repurchase program for up 55 million shares of the Company's common shares. From time to time at management's discretion, the Company repurchases its common shares in the open market, depending on market conditions, stock price and other factors. During the three months ended June 30, 2019, the Company purchased a total of 1.0 million shares at an average cost per share of $82.51. During the six months ended June 30, 2019, the Company purchased a total of 1.9 million shares at an average cost per share of $83.33. As of June 30, 2019, there remained 4.3 million common shares available for repurchase under this program. The repurchased common shares remain in treasury and have not been retired.

INVENTORY VALUATION

6 Months Ended

Jun. 30, 2019

Inventory Disclosure [Abstract]

INVENTORY VALUATION

INVENTORIES

Inventories in the Condensed Consolidated Balance Sheets are comprised of the following components:



	June 30, 2019		December 31, 2018
Raw materials	$	99,219	$	103,820
Work-in-process	70,066		53,950
Finished goods	228,467		204,059
Total	$	397,752	$	361,829

At June 30, 2019 and December 31, 2018, approximately 36% and 37%, respectively, of total inventories were valued using the last-in, first-out ("LIFO") method. The excess of current cost over LIFO cost was $78,760 and $79,626 at June 30, 2019 and December 31, 2018, respectively.

LEASES (Notes)

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Lessee, Operating Leases [Text Block]

LEASES

On January 1, 2019, the Company adopted Topic 842 using the modified retrospective transition option. The adoption of Topic 842 resulted in the recording of right-of-use assets and lease liabilities for the Company's operating leases. The table below summarizes the right-of-use assets and lease liabilities in the Company's Condensed Consolidated Balance sheets:



Operating Leases	Balance Sheet Classification	June 30, 2019
Right-of-use assets	Other assets	$	58,363

Current liabilities	Other current liabilities	$	14,362
Noncurrent liabilities	Other liabilities	44,326
Total lease liabilities		$	58,688

Topic 842 did not materially impact our consolidated net earnings, cash flows or debt covenants.

The Company determines if an agreement is a lease at inception. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of the Company’s operating leases do not provide an implicit rate, the Company uses a discount rate based on information available at commencement date to present value the lease payments.

The Company has operating leases for sales offices, manufacturing facilities, warehouses and distribution centers, transportation equipment, office equipment and information technology equipment. Some of these leases are noncancelable. Variable or short term lease costs contained within the Company’s operating leases are not material. Most leases include one or more options to renew, which can extend the lease term from 1 year to 11 years or more. The exercise of lease renewal options is at the Company's sole discretion. Certain leases also include options to purchase the leased property. Leases with an initial term of 12 months or less are not recorded on the Company's Condensed Consolidated Balance sheets. The Company recognizes lease expense for these leases on a straight-line basis over the lease term.

The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Total lease expense, which is included in Cost of goods sold and Selling, general and administrative expenses in the Company's Consolidated Statements of Income, was $6,546 and $12,435 in the three and six months ended June 30, 2019, respectively. Cash paid for amounts included in the measurement of lease liabilities for the three and six months ended June 30, 2019 respectively was $4,549 and $9,233 and is included in Net cash provided by operating activities in the Company's Consolidated Statements of Cash Flows. Right-of-use assets obtained in exchange for operating lease liabilities during the three and six months ended June 30, 2019 were $9,717 and $14,673, respectively.

The total future minimum lease payments for noncancelable operating leases were as follows:



	June 30, 2019
2019	$	8,330
2020	14,777
2021	11,441
2022	8,760
2023	7,128
After 2023	16,632
Total lease payments	$	67,068
Less: Imputed interest	(8,380		)
Operating lease liabilities	$	58,688

As of June 30, 2019, the weighted average remaining lease term is 6.4 years and the weighted average discount rate used to determine the operating lease liability is 3.6%.

PRODUCT WARRANTY COSTS

6 Months Ended

Jun. 30, 2019

Product Warranties Disclosures [Abstract]

PRODUCT WARRANTY COSTS

The changes in the carrying amount of product warranty accruals are as follows:



	Six Months Ended June 30,
	2019			2018
Balance at beginning of year	$	19,778		$	22,029
Accruals for warranties	5,121			4,818
Settlements	(5,720		)	(5,127		)
Foreign currency translation and other adjustments	33			(169		)
Balance at June 30	$	19,212		$	21,551

DEBT	6 Months Ended
DEBT	Jun. 30, 2019
Debt Disclosure [Abstract]
DEBT	DEBT Revolving Credit Agreement The Company has a line of credit totaling $400,000 through the Amended and Restated Credit Agreement (the “Credit Agreement”). The Credit Agreement has a term of 5 years and may be increased, subject to certain conditions, by an additional amount up to $100,000. The interest rate on borrowings is based on either the London Inter-Bank Offered Rate ("LIBOR") or the prime rate, plus a spread based on the Company’s leverage ratio, at the Company’s election. The Company amended and restated the Credit Agreement on June 30, 2017, extending the maturity of the line of credit to June 30, 2022. The Credit Agreement contains customary affirmative, negative and financial covenants for credit facilities of this type, including limitations on the Company and its subsidiaries with respect to liens, investments, distributions, mergers and acquisitions, dispositions of assets, transactions with affiliates and a fixed charges coverage ratio and total leverage ratio. As of June 30, 2019, the Company was in compliance with all of its covenants and had $30,000 of outstanding borrowings under the Credit Agreement. Senior Unsecured Notes On April 1, 2015 and October 20, 2016, the Company entered into separate Note Purchase Agreements pursuant to which it issued senior unsecured notes (the "Notes") through a private placement. The 2015 Notes and 2016 Notes each have an aggregate principal amount of $350,000, comprised of four different series ranging from $50,000 to $100,000, with maturity dates ranging from August 20, 2025 through April 1, 2045, and interest rates ranging from 2.75% and 4.02%. Interest on the Notes is paid semi-annually. The Company's total weighted average effective interest rate and remaining weighted average tenure of the Notes is 3.3% and 15 years, respectively. The proceeds of the Notes were used for general corporate purposes. The Notes contain certain affirmative and negative covenants. As of June 30, 2019, the Company was in compliance with all of its debt covenants relating to the Notes. Shelf Agreements On November 27, 2018, the Company entered into seven uncommitted master note facilities (the "Shelf Agreements") that allow borrowings up to $700,000 in the aggregate. The Shelf Agreements have a term of 5 years and the average life of borrowings cannot exceed 15 years. The Company is required to comply with covenants similar to those contained in the Notes. As of June 30, 2019, the Company was in compliance with all of its covenants and had no outstanding borrowings under the Shelf Agreements.

RETIREMENT AND POSTRETIREMENT BENEFIT PLANS

6 Months Ended

Jun. 30, 2019

Retirement Benefits [Abstract]

RETIREMENT AND POSTRETIREMENT BENEFIT PLANS

The components of total pension cost were as follows:



	Three Months Ended June 30,												Six Months Ended June 30,
	2019						2018						2019						2018
	U.S. pension plans			Non-U.S. pension plans			U.S. pension plans			Non-U.S. pension plans			U.S. pension plans			Non-U.S. pension plans			U.S. pension plans			Non-U.S. pension plans
Service cost	$	35		$	701		$	35		$	832		$	70		$	1,429		$	70		$	1,683
Interest cost	4,653			922			4,493			937			9,306			1,858			8,987			1,907
Expected return on plan assets	(6,245		)	(1,106		)	(6,915		)	(1,266		)	(12,490		)	(2,230		)	(13,831		)	(2,540		)
Amortization of prior service cost	—			15			—			—			—			31			—			1
Amortization of net loss	414			572			384			555			827			1,157			768			1,130
Settlement charges ⁽¹⁾	—			—			—			—			—			—			758			—
Defined benefit plans	(1,143		)	1,104			(2,003		)	1,058			(2,287		)	2,245			(3,248		)	2,181
Multi-employer plans	—			243			—			234			—			490			—			461
Defined contribution plans	5,791			424			5,610			1,036			11,699			923			11,504			1,865
Total pension cost	$	4,648		$	1,771		$	3,607		$	2,328		$	9,412		$	3,658		$	8,256		$	4,507

(1) Pension settlement charges resulting from lump sum pension payments in the six months ended June 30, 2018.

The defined benefit plan components of Total pension cost, other than service cost, are included in Other income (expense) in the Company's Consolidated Statements of Income.

OTHER INCOME (EXPENSE)

6 Months Ended

Jun. 30, 2019

Other Income and Expenses [Abstract]

Other Income and Other Expense Disclosure [Text Block]

OTHER INCOME (EXPENSE)

The components of Other income (expense) were as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Equity earnings in affiliates	$	1,790	$	1,559	$	2,796	$	2,759
Other components of net periodic pension (cost) income ⁽¹⁾	775		1,812		1,541		2,820
Other income	1,631		1,070		3,622		2,313
Total Other income (expense)	$	4,196	$	4,441	$	7,959	$	7,892

(1) Includes pension settlement charges in the six months ended June 30, 2018 of $758. Refer to Note 13 to the consolidated financial statements for details.

INCOME TAXES	6 Months Ended
INCOME TAXES	Jun. 30, 2019
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The Company recognized $39,492 of tax expense on pretax income of $196,402, resulting in an effective income tax rate of 20.1% for the six months ended June 30, 2019. The effective income tax rate was 27.3% for the six months ended June 30, 2018. The decrease in the effective tax rate for the six months ended June 30, 2019, as compared with the same period in 2018, was primarily due to income tax benefits for the settlement of a tax item as well as tax deductions associated with an investment in a subsidiary in 2019, rationalization charges in regions with low or no tax benefit recorded in 2018 and adjustments and incremental tax expense recorded in 2018 related to the U.S. Tax Act. As of June 30, 2019, the Company had $26,157 of unrecognized tax benefits. If recognized, approximately $22,597 would be reflected as a component of income tax expense. The Company files income tax returns in the U.S. and various state, local and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local or non-U.S. income tax examinations by tax authorities for years before 2014. The Company is currently subject to U.S., various state and non-U.S. income tax audits. Unrecognized tax benefits are reviewed on an ongoing basis and are adjusted for changing facts and circumstances, including progress of tax audits and closing of statutes of limitations. Based on information currently available, management believes that additional audit activity could be completed and/or statutes of limitations may close relating to existing unrecognized tax benefits. It is reasonably possible there could be a reduction of $5,379 in previously unrecognized tax benefits by the end of the second quarter 2020.

DERIVATIVES

6 Months Ended

Jun. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVES

The Company uses derivative instruments to manage exposures to currency exchange rates, interest rates and commodity prices arising in the normal course of business. Both at inception and on an ongoing basis, the derivative instruments that qualify for hedge accounting are assessed as to their effectiveness, when applicable. Hedge ineffectiveness was immaterial in the six months ended June 30, 2019 and 2018.

The Company is subject to the credit risk of the counterparties to derivative instruments. Counterparties include a number of major banks and financial institutions. None of the concentrations of risk with any individual counterparty was considered significant at June 30, 2019. The Company does not expect any counterparties to fail to meet their obligations.

Cash Flow Hedges

Certain foreign currency forward contracts were qualified and designated as cash flow hedges. The dollar equivalent gross notional amount of these short-term contracts was $66,873 at June 30, 2019 and $45,909 at December 31, 2018.

Fair Value Hedges

Certain interest rate swap agreements were qualified and designated as fair value hedges. At June 30, 2019, the Company had interest rate swap agreements outstanding that effectively convert notional amounts of $125,000 of debt from a fixed interest rate to a variable interest rate based on three-month LIBOR plus a spread of between 0.5% and 1.8%. The variable rates reset every three months, at which time payment or receipt of interest will be settled.

Net Investment Hedges

From time to time, the Company executes foreign currency forward contracts that qualify and are designated as net investment hedges. No such contracts were outstanding at June 30, 2019 and December 31, 2018.

Derivatives Not Designated as Hedging Instruments

The Company has certain foreign exchange forward contracts that are not designated as hedges. These derivatives are held as economic hedges of certain balance sheet exposures. The dollar equivalent gross notional amount of these contracts was $335,048 and $328,534 at June 30, 2019 and December 31, 2018, respectively.

Fair values of derivative instruments in the Company’s Condensed Consolidated Balance Sheets follow:



	June 30, 2019								December 31, 2018
Derivatives by hedge designation	Other Current Assets		Other Current Liabilities		Other Assets		Other Liabilities		Other Current Assets		Other Current Liabilities		Other Assets		Other Liabilities
Designated as hedging instruments:
Foreign exchange contracts	$	676	$	514	$	—	$	—	$	647	$	404	$	—	$	—
Interest rate swap agreements	—		—		2,682		1,584		—		—		302		7,033
Not designated as hedging instruments:
Foreign exchange contracts	5,471		558		—		—		6,375		829		—		—
Total derivatives	$	6,147	$	1,072	$	2,682	$	1,584	$	7,022	$	1,233	$	302	$	7,033

The effects of undesignated derivative instruments on the Company’s Consolidated Statements of Income consisted of the following:



		Three Months Ended June 30,					Six Months Ended June 30,
Derivatives by hedge designation	Classification of gain (loss)	2019		2018			2019		2018
Not designated as hedges:
Foreign exchange contracts	Selling, general & administrative expenses	$	1,010	$	(4,406	)	$	6,417	$	4,249

The effects of designated hedges on AOCI and the Company’s Consolidated Statements of Income consisted of the following:



Total gain (loss) recognized in AOCI, net of tax	June 30, 2019		December 31, 2018
Foreign exchange contracts	$	201	$	173
Net investment contracts	1,521		1,521

The Company expects a gain of $201 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 June 30,					Six Months Ended June 30,
Derivative type	Gain (loss) recognized in the Consolidated Statements of Income:	2019		2018			2019		2018
Foreign exchange contracts	Sales	$	387	$	(37	)	$	775	$	106
	Cost of goods sold	152		20			249		53

FAIR VALUE

6 Months Ended

Jun. 30, 2019

Fair Value Disclosures [Abstract]

FAIR VALUE

The following table provides a summary of assets and liabilities as of June 30, 2019, measured at fair value on a recurring basis:



Description	Balance as of June 30, 2019		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	$	6,147	$	—	$	6,147	$	—
Interest rate swap agreements	2,682		—		2,682		—
Total assets	$	8,829	$	—	$	8,829	$	—

Liabilities:
Foreign exchange contracts