Capital Structure and Accumulated Comprehensive Income | 3 Months Ended |
Mar. 31, 2014 |
Equity [Abstract] | ' |
Capital Structure and Accumulated Comprehensive Income | ' |
NOTE C—CAPITAL STRUCTURE AND ACCUMULATED COMPREHENSIVE INCOME |
Common Stock |
Our Amended and Restated Certificate of Incorporation, authorizes up to 500,000,000 shares of common stock, par value of $0.01. Subject to the rights of holders of any series of preferred stock, all of the voting power of the stockholders of Holdings shall be vested in the holders of the common stock. There were 53,733,092 shares of common stock issued and outstanding at March 31, 2014. As of March 31, 2013, there were 52,987,227 shares issued and outstanding. On February 6, 2014, our Board of Directors declared a quarterly cash dividend of $0.125 per share to common stockholders of record at the close of business on March 14, 2014. The dividend payment was made to our transfer agent on March 31, 2014, and was paid to shareholders on April 1, 2014 by our transfer agent. |
Management and our Board of Directors remain committed to evaluating additional ways of creating shareholder value. Any determination to pay dividends and other distributions in cash, stock, or property by Holdings in the future will be at the discretion of our Board of Directors and will be dependent on then-existing conditions, including our business conditions, our financial condition, results of operations, liquidity, capital requirements, contractual restrictions including restrictive covenants contained in our debt agreements, and other factors. Additionally, because we are a holding company, our ability to pay dividends on our common stock may be limited by restrictions on the ability of our subsidiaries to pay dividends or make distributions to us, including restrictions under the terms of the agreements governing our indebtedness. |
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Preferred Stock |
Our Amended and Restated Certificate of Incorporation authorizes our Board of Directors to issue up to 10,000,000 shares, in the aggregate, of preferred stock, par value of $0.01 in one or more series and to fix the preferences, powers and relative, participating, optional or other special rights and qualifications, limitations or restrictions thereof, including the dividend rate, conversion rights, voting rights, redemption rights and liquidation preference and to fix the number of shares to be included in any such series without any further vote or action by our stockholders. |
There are no shares of preferred stock issued or outstanding at March 31, 2014 and 2013. At present, we have no plans to issue any preferred stock. |
Share Repurchase Program |
On June 11, 2012, our Board of Directors authorized us to repurchase up to $25.0 million of our common stock. The authorization was initially for a period of 18 months, concluding on December 11, 2013, but on November 4, 2013, our Board of Directors extended the repurchase program through December 11, 2014. We are authorized to repurchase, from time to time, shares of our outstanding common stock on the open market or in privately negotiated transactions. Stock repurchases will be funded using our available liquidity. The timing and amount of stock repurchases will depend on a variety of factors, including the market conditions as well as corporate and regulatory considerations. The share repurchase program may be suspended, modified or discontinued at any time and we have no obligation to repurchase any additional amount of our common stock under the program. We intend to make all repurchases in compliance with applicable regulatory guidelines and to administer the plan in accordance with applicable laws, including Rule 10b-18 of the Securities Exchange Act of 1934, as amended. As part of the program, as of March 31, 2014, we have repurchased 100,000 shares of our common stock at an average price of $10.72 and are authorized to repurchase up to an additional $23.9 million of our common stock. As of March 31, 2014, all of the 100,000 shares repurchased to date have been re-issued to satisfy employee option exercises. |
Accumulated Other Comprehensive Income |
Accumulated other comprehensive income (loss) consists of fair value adjustments associated with cash flow hedges and accumulated adjustments for net experience losses and prior service cost related to employee benefit plans. The following table presents the changes in accumulated other comprehensive income by component during the three months ended March 31, 2014: |
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| | For the Three Months Ended March 31, 2014 | |
| | Unrealized | | | Unrealized | | | Pension and | | | Total | |
gain/(loss) on | gain/(loss) on | other |
cash flow hedges | short-term | post-retirement |
| investments | benefits liability |
Beginning Balance | | $ | (79 | ) | | $ | (27 | ) | | $ | (3,911 | ) | | $ | (4,017 | ) |
Other comprehensive income (loss) before reclassifications | | | (21 | ) | | | 29 | | | | — | | | | 8 | |
Amounts reclassed from accumulated other comprehensive income | | | 2 | | | | — | | | | 149 | | | | 151 | |
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Ending Balance | | $ | (98 | ) | | $ | 2 | | | $ | (3,762 | ) | | $ | (3,858 | ) |
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The following table presents the reclassifications out of accumulated other comprehensive income (loss) during the three months ended March 31, 2014: |
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Details about accumulated other comprehensive income | | Amount reclassified from | | | Affected line item in the | | | | | | | | | | |
accumulated other | statement of operations | | | | | | | | | | |
comprehensive income | | | | | | | | | | | |
Gains and losses on cash flow hedges | | | | | | | | | | | | | | | | |
Interest rate contracts | | $ | 3 | | | Interest expense | | | | | | | | | | |
| | | (1 | ) | | Tax expense | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | $ | 2 | | | Net of tax | | | | | | | | | | |
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Amortization of postretirement benefits liability | | | | | | | | | | | | | | | | |
Actuarial gains/(losses) | | $ | 203 | | | -1 | | | | | | | | | | |
Prior service cost | | | 41 | | | -1 | | | | | | | | | | |
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| | $ | 244 | | | Total before tax | | | | | | | | | | |
| | | (95 | ) | | Tax expense | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | 149 | | | Net of tax | | | | | | | | | | |
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Total reclassifications for the period | | $ | 151 | | | Net of tax | | | | | | | | | | |
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(1) | These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note M—Pension and Post-Retirement Benefits). | | | | | | | | | | | | | | | |