Document_and_Entity_Informatio
Document and Entity Information Document | 9 Months Ended | |
Sep. 30, 2013 | Oct. 31, 2013 | |
Entity Information [Line Items] | ' | ' |
Entity Registrant Name | 'GRAYBAR ELECTRIC CO INC | ' |
Entity Central Index Key | '0000205402 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 15,468,427 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Gross Sales | $1,492,586 | $1,394,800 | $4,254,256 | $4,067,016 | ||||
Cash discounts | -6,135 | -5,508 | -16,775 | -16,060 | ||||
Net Sales | 1,486,451 | 1,389,292 | 4,237,481 | 4,050,956 | ||||
Cost of merchandise sold | -1,208,788 | -1,133,046 | -3,460,021 | -3,289,222 | ||||
Gross Margin | 277,663 | 256,246 | 777,460 | 761,734 | ||||
Selling, general and administrative expenses | -220,791 | -213,396 | -652,950 | -635,618 | ||||
Depreciation and amortization | -9,251 | -8,059 | -27,268 | -24,013 | ||||
Other income, net | 451 | 915 | 1,653 | 32,988 | ||||
Income from Operations | 48,072 | 35,706 | 98,895 | 135,091 | ||||
Interest expense, net | -407 | -416 | -1,171 | -1,876 | ||||
Income before Provision for Income Taxes | 47,665 | 35,290 | 97,724 | 133,215 | ||||
Provision for income taxes | -18,946 | -15,210 | -39,100 | -53,849 | ||||
Net Income | 28,719 | 20,080 | 58,624 | 79,366 | ||||
Less: Net income attributable to noncontrolling interests | -86 | -68 | -154 | -211 | ||||
Net Income attributable to Graybar Electric Company, Inc. | $28,633 | $20,012 | $58,470 | $79,155 | ||||
Net Income per share of Common Stock (A) | $1.85 | [1] | $1.29 | [1] | $3.76 | [1] | $5.08 | [1] |
Cash Dividends per share of Common Stock (B) | $0.30 | [2] | $0.30 | [2] | $0.90 | [2] | $0.90 | [2] |
Average Common Shares Outstanding (A) | 15,507 | [1] | 15,568 | [1] | 15,565 | [1] | 15,595 | [1] |
[1] | (A)Adjusted for the declaration of a twenty percent (20%) stock dividend in 2012, shares related to which were issued in February 2013. Prior to the adjustment, the average common shares outstanding were 12,973 and 12,996 for the three and nine months ended September 30, 2012, respectively. | |||||||
[2] | (B)Cash dividends declared were $4,665 and $3,896 for the three months ended September 30, 2013 and 2012, respectively. Cash dividends declared were $14,041 and $11,729 for the nine months ended September 30, 2013 and 2012, respectively. |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Income Parenthetical (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Stock Dividend | ' | ' | 20.00% | ' | ||||
Average common shares outstanding | 15,507 | [1] | 15,568 | [1] | 15,565 | [1] | 15,595 | [1] |
Cash dividends declared | $4,665 | $3,896 | $14,041 | $11,729 | ||||
Scenario, Previously Reported [Member] | ' | ' | ' | ' | ||||
Average common shares outstanding | ' | 12,973 | ' | 12,996 | ||||
[1] | (A)Adjusted for the declaration of a twenty percent (20%) stock dividend in 2012, shares related to which were issued in February 2013. Prior to the adjustment, the average common shares outstanding were 12,973 and 12,996 for the three and nine months ended September 30, 2012, respectively. |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net Income | $28,719 | $20,080 | $58,624 | $79,366 |
Other Comprehensive Income | ' | ' | ' | ' |
Foreign currency translation | 1,637 | 3,067 | -2,545 | 2,842 |
Pension and postretirement benefits liability adjustment (net of tax of $2,661, $2,142, $7,983 and $6,428, respectively) | 4,179 | 3,365 | 12,537 | 10,097 |
Total Other Comprehensive Income | 5,816 | 6,432 | 9,992 | 12,939 |
Comprehensive Income | 34,535 | 26,512 | 68,616 | 92,305 |
Comprehensive income attributable to noncontrolling interests, net of tax | -204 | -166 | -112 | -66 |
Comprehensive Income attributable to Graybar Electric Company, Inc. | $34,331 | $26,346 | $68,504 | $92,239 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Comprehensive Income Parenthetical (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Tax | $2,661 | $2,142 | $7,983 | $6,428 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $46,974 | $37,674 |
Trade receivables (less allowances of $7,009 and $6,868, respectively) | 846,252 | 782,390 |
Merchandise inventory | 468,060 | 416,753 |
Other current assets | 29,964 | 25,442 |
Total Current Assets | 1,391,250 | 1,262,259 |
Property, at cost | ' | ' |
Land | 66,909 | 65,821 |
Buildings | 405,329 | 393,399 |
Furniture and fixtures | 228,453 | 212,650 |
Software | 76,906 | 76,906 |
Capital leases | 14,201 | 11,463 |
Total Property, at cost | 791,798 | 760,239 |
Less – accumulated depreciation and amortization | -419,674 | -402,233 |
Net Property | 372,124 | 358,006 |
Other Non-current Assets | 77,058 | 83,932 |
Total Assets | 1,840,432 | 1,704,197 |
LIABILITIES | ' | ' |
Short-term borrowings | 90,246 | 71,116 |
Current portion of long-term debt | 2,425 | 10,005 |
Trade accounts payable | 666,564 | 573,252 |
Accrued payroll and benefit costs | 81,472 | 109,250 |
Other accrued taxes | 14,807 | 11,748 |
Other current liabilities | 70,528 | 61,315 |
Total Current Liabilities | 926,042 | 836,686 |
Postretirement Benefits Liability | 77,570 | 77,036 |
Pension Liability | 154,636 | 167,223 |
Long-term Debt | 2,614 | 1,990 |
Other Non-current Liabilities | 23,180 | 21,046 |
Total Liabilities | 1,184,042 | 1,103,981 |
SHAREHOLDERS’ EQUITY | ' | ' |
Outstanding Common Stock | 310,835 | 310,008 |
Advance Payments on Subscriptions to Common Stock | 415 | 0 |
Retained Earnings | 498,199 | 453,770 |
Accumulated Other Comprehensive Loss | -156,780 | -166,814 |
Total Graybar Electric Company, Inc. Shareholders’ Equity | 652,669 | 596,964 |
Noncontrolling Interests | 3,721 | 3,252 |
Total Shareholders’ Equity | 656,390 | 600,216 |
Total Liabilities and Shareholders' Equity | $1,840,432 | $1,704,197 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets Parenthetical (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Allowance for doubtful accounts | $7,009 | $6,868 |
Common, stated value per share | $20 | $20 |
Authorized | 50,000,000 | 20,000,000 |
Issued to voting trustees | 13,337,764 | 12,844,501 |
Issued to shareholders | 2,793,836 | 2,740,489 |
In treasury, at cost | -589,844 | -84,566 |
Outstanding Common Stock | 15,541,756 | 15,500,424 |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash Flows from Operations | ' | ' |
Net Income | $58,624 | $79,366 |
Adjustments to reconcile net income to cash provided by operations: | ' | ' |
Depreciation and amortization | 27,268 | 24,013 |
Deferred income taxes | -2,835 | 3,000 |
Net losses (gains) on disposal of property | 324 | -30,732 |
Loss on impairment of property | 0 | 257 |
Net income attributable to noncontrolling interests | -154 | -211 |
Changes in assets and liabilities: | ' | ' |
Trade receivables | -63,862 | 16,072 |
Merchandise inventory | -51,307 | -58,738 |
Other current assets | -2,431 | 3,355 |
Other non-current assets | -365 | -2,135 |
Trade accounts payable | 93,312 | 8,041 |
Accrued payroll and benefit costs | -27,778 | -37,367 |
Other current liabilities | 10,761 | 14,194 |
Other non-current liabilities | 10,601 | 7,111 |
Total adjustments to net income | -6,466 | -53,140 |
Net cash provided by operations | 52,158 | 26,226 |
Cash Flows from Investing Activities | ' | ' |
Proceeds from disposal of property | 162 | 33,577 |
Capital expenditures for property | -40,014 | -30,662 |
Net cash (used) provided by investing activities | -39,852 | 2,915 |
Cash Flows from Financing Activities | ' | ' |
Net increase in short-term borrowings | 19,130 | 33,114 |
Repayment of long-term debt | -7,386 | -35,101 |
Principal payments under capital leases | -2,308 | -2,186 |
Sale of common stock | 11,347 | 10,501 |
Purchases of common stock | -10,105 | -8,119 |
Sales of noncontrolling interests' common stock | 487 | 0 |
Purchases of noncontrolling interests’ common stock | -130 | -2,855 |
Dividends paid | -14,041 | -24,672 |
Net cash used by financing activities | -3,006 | -29,318 |
Net Increase (Decrease) in Cash | 9,300 | -177 |
Cash, Beginning of Year | 37,674 | 71,967 |
Cash, End of Period | 46,974 | 71,790 |
Non-cash Investing and Financing Activities | ' | ' |
Acquisitions of equipment under capital leases | $2,738 | $1,674 |
Condensed_Consolidated_Stateme5
Condensed Consolidated Statements of Changes in Shareholders’ Equity (USD $) | Total | Common Stock | Common Stock Subscribed, Unissued | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests |
In Thousands, unless otherwise specified | ||||||
Balance at Dec. 31, 2011 | $571,394 | $257,630 | $0 | $458,139 | ($150,364) | $5,989 |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income | 79,366 | ' | ' | 79,155 | ' | 211 |
Other comprehensive income | 12,939 | ' | ' | ' | 13,084 | -145 |
Stock issued | 10,106 | 10,106 | ' | ' | ' | ' |
Stock purchased | -10,974 | -8,119 | ' | ' | ' | -2,855 |
Advance payments | 395 | ' | 395 | ' | ' | ' |
Dividends declared | -11,729 | ' | ' | -11,729 | ' | ' |
Balance at Sep. 30, 2012 | 651,497 | 259,617 | 395 | 525,565 | -137,280 | 3,200 |
Balance at Dec. 31, 2012 | 600,216 | 310,008 | 0 | 453,770 | -166,814 | 3,252 |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income | 58,624 | ' | ' | 58,470 | ' | 154 |
Other comprehensive income | 9,992 | ' | ' | ' | 10,034 | -42 |
Stock issued | 11,419 | 10,932 | ' | ' | ' | 487 |
Stock purchased | -10,235 | -10,105 | ' | ' | ' | -130 |
Advance payments | 415 | ' | 415 | ' | ' | ' |
Dividends declared | -14,041 | ' | ' | -14,041 | ' | ' |
Balance at Sep. 30, 2013 | $656,390 | $310,835 | $415 | $498,199 | ($156,780) | $3,721 |
Description_of_the_Business
Description of the Business | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Description of the Business | ' |
DESCRIPTION OF THE BUSINESS | |
Graybar Electric Company, Inc. (“Graybar” or the “Company”) is a New York corporation, incorporated in 1925. The Company is engaged in the distribution of electrical, communications and data networking (“comm/data”) products and the provision of related supply chain management and logistics services, primarily to electrical and comm/data contractors, industrial plants, federal, state and local governments, commercial users, telephone companies, and power utilities in North America. All products sold by the Company are purchased by the Company from others, and the Company neither manufactures nor contracts to manufacture any products that it sells. The Company’s business activity is primarily with customers in the United States of America (“U.S.”). Graybar also has subsidiary operations with distribution facilities in Canada and Puerto Rico. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
The Company’s accounting policies conform to generally accepted accounting principles in the U.S. (“U.S. GAAP”) and are applied on a consistent basis among all periods presented. Significant accounting policies are described below. | |
Basis of Presentation | |
The condensed consolidated financial statements included herein have been prepared by Graybar Electric Company, Inc., without audit, pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “Commission”) applicable to interim financial reporting. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations, although the Company believes that its disclosures are adequate to make the information presented not misleading. The preparation of financial statements in accordance with U.S. GAAP requires the use of estimates and assumptions that affect reported amounts. The Company’s condensed consolidated financial statements include amounts that are based on management’s best estimates and judgments. Actual results could differ from those estimates. Certain reclassifications were made to prior year amounts to conform to the 2013 presentation. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto and Management’s Discussion and Analysis of Financial Condition and Results of Operations as of and for the year ended December 31, 2012, included in the Company’s latest Annual Report on Form 10-K. | |
In the opinion of management, this quarterly report includes all adjustments, consisting of normal recurring accruals and adjustments, necessary for the fair presentation of the financial statements presented. Such interim financial information is subject to year-end adjustments. Results for interim periods are not necessarily indicative of results to be expected for the full year. | |
Principles of Consolidation | |
The consolidated financial statements include the accounts of Graybar Electric Company, Inc. and its subsidiary companies. All material intercompany balances and transactions have been eliminated. The ownership interests that are held by owners other than the Company in subsidiaries consolidated by the Company are accounted for and reported as noncontrolling interests. | |
Estimates | |
The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities. Actual results could differ from these estimates. | |
Subsequent Events | |
The Company has evaluated subsequent events through the time of the filing of this Quarterly Report on Form 10-Q with the Commission. No material subsequent events have occurred since September 30, 2013 that require recognition or disclosure in these financial statements. | |
Revenue Recognition | |
Revenue is recognized when evidence of a customer arrangement exists, prices are fixed and determinable, product title, ownership and risk of loss transfers to the customer, and collectability is reasonably assured. Revenues recognized are primarily for product sales, but also include freight and handling charges. The Company’s standard shipping terms are FOB shipping point, under which product title passes to the customer at the time of shipment. The Company does, however, fulfill some customer orders based on shipping terms of FOB destination, whereby title passes to the customer at the time of delivery. The Company also earns revenue for services provided to customers for supply chain management and logistics services. Service revenue is recognized when services are rendered and completed. Revenue is reported net of all taxes assessed by governmental authorities as a result of revenue-producing transactions, primarily sales tax. | |
Outgoing Freight Expenses | |
The Company records certain outgoing freight expenses as a component of selling, general and administrative expenses. | |
Cash and Cash Equivalents | |
The Company accounts for cash on hand, deposits in banks, and other short-term, highly liquid investments with an original maturity of three months or less as cash and cash equivalents. | |
Allowance for Doubtful Accounts | |
The Company performs ongoing credit evaluations of its customers, and a significant portion of its trade receivables is secured by mechanic’s lien or payment bond rights. The Company maintains allowances to reflect the expected uncollectability of trade receivables based on past collection history and specific risks identified in the receivables portfolio. Although actual credit losses have historically been within management’s expectations, additional allowances may be required if the financial condition of the Company’s customers were to deteriorate. | |
Merchandise Inventory | |
The Company’s inventory is stated at the lower of cost (determined using the last-in, first-out (“LIFO”) cost method) or market. LIFO accounting is a method of accounting that, compared with other inventory accounting methods, generally provides better matching of current costs with current sales. | |
The Company makes provisions for obsolete or excess inventories as necessary to reflect reductions in inventory value. | |
Supplier Volume Incentives | |
The Company’s agreements with many of its suppliers provide for the Company to earn volume incentives based on purchases during the agreement period. These agreements typically provide for the incentives to be paid quarterly or annually in arrears. The Company estimates amounts to be received from suppliers at the end of each reporting period based on the earnout level that the Company believes is probable of being achieved. The Company records the incentive ratably over the year as a reduction of cost of merchandise sold as the related inventory is sold. Changes in the estimated amount of incentives are treated as changes in estimate and are recognized in earnings in the period in which the change in estimate occurs. In the event that the operating performance of the Company’s suppliers were to decline, however, there can be no assurance that amounts earned would be paid or that the volume incentives would continue to be included in future agreements. | |
Property and Depreciation | |
Property, plant and equipment are recorded at cost. Depreciation is expensed on a straight-line basis over the estimated useful lives of the related assets. Interest costs incurred to finance expenditures for major long-term construction projects are capitalized as part of the asset's historical cost and included in property, plant and equipment, then depreciated over the useful life of the asset. Leasehold improvements are amortized over the term of the lease or the estimated useful life of the improvement, whichever is shorter. Expenditures for maintenance and repairs are charged to expense when incurred, while the costs of significant improvements, which extend the useful life of the underlying asset, are capitalized. | |
Credit Risk | |
Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of trade receivables. The Company performs ongoing credit evaluations of its customers, and a significant portion of its trade receivables is secured by mechanic’s lien or payment bond rights. The Company maintains allowances for potential credit losses, and such losses historically have been within management’s expectations. | |
Fair Value | |
The Company endeavors to utilize the best available information in measuring fair value. U.S. GAAP has established a fair value hierarchy, which prioritizes the inputs used in measuring fair value. The tiers in the hierarchy include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own data inputs and assumptions. The Company has used fair value measurements to value its pension plan assets. | |
Foreign Currency Exchange Rate | |
The functional currency for the Company’s Canadian subsidiary is the Canadian dollar. Accordingly, its balance sheet amounts are translated at the exchange rates in effect at the end of each reporting period and its statements of income amounts are translated at the average rates of exchange prevailing during the current period. Currency translation adjustments are included in accumulated other comprehensive loss. | |
Goodwill | |
The Company’s goodwill and indefinite-lived intangible assets are not amortized, but rather tested annually for impairment. Goodwill is reviewed annually in the fourth quarter and/or when circumstances or other events might indicate that impairment may have occurred. The Company performs either a qualitative or quantitative assessment of goodwill impairment. The qualitative assessment considers several factors including the excess fair value over carrying value as of the last quantitative impairment test, the length of time since the last fair value measurement, the current carrying value, market conditions, actual performance compared to forecasted performance, and the current business outlook. If the qualitative assessment indicates that it is more likely than not that goodwill is impaired, the reporting unit is quantitatively tested for impairment. If a quantitative assessment is required, the fair value is determined using a variety of assumptions including estimated future cash flows of the reporting unit and applicable discount rates. | |
Income Taxes | |
The Company recognizes deferred tax assets and liabilities to reflect the future tax consequences of events that have been recognized in the financial statements or tax returns. Uncertainty exists regarding tax positions taken in previously filed tax returns still subject to examination and positions expected to be taken in future returns. A deferred tax asset or liability results from the temporary difference between an item’s carrying value as reflected in the financial statements and its tax basis, and is calculated using enacted applicable tax rates. The Company assesses the likelihood that its deferred tax assets will be recovered from future taxable income and, to the extent it believes that recovery is not likely, a valuation allowance is established. Changes in the valuation allowance, when recorded, are included in the provision for income taxes in the consolidated financial statements. The Company classifies interest expense and penalties as part of its provision for income taxes based upon applicable federal and state interest/underpayment percentages. | |
Other Postretirement Benefits | |
The Company accounts for postretirement benefits other than pensions by accruing the costs of benefits to be provided over the employees’ periods of active service. These costs are determined on an actuarial basis. The Company’s consolidated balance sheets reflect the funded status of postretirement benefits. | |
Pension Plan | |
The Company sponsors a noncontributory defined benefit pension plan accounted for by accruing the cost to provide the benefits over the employees’ periods of active service. These costs are determined on an actuarial basis. The Company’s consolidated balance sheets reflect the funded status of the defined benefit pension plan. | |
New Accounting Standards | |
In July 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU” or “Update”) 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” which provides guidance on the financial statement presentation of unrecognized tax benefits when a net operating loss, a similar tax loss, or a tax credit carryforward exists. The requirements are effective for annual reporting periods beginning after December 15, 2013, and interim periods within those annual periods. The Company continues to evaluate the impact that the adoption of this guidance will have on the Company’s financial condition or results of operations. | |
In February 2013, the FASB issued ASU 2013-02, “Comprehensive Income: Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income”, which adds new disclosure requirements for items reclassified out of accumulated other comprehensive income (“AOCI”). The Update requires that the Company present either in a single note or parenthetically on the face of the financial statements, the effect of significant amounts reclassified from each component of AOCI based on its source and the income statement line items affected by the reclassification. The Company adopted this Update as of January 1, 2013, and the adoption did not have any impact on the Company's results of operations, financial position, or cash flows during the three and nine months ended September 30, 2013, other than additional disclosures contained in Note 7. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
INCOME TAXES | |
The Company determines its deferred tax assets and liabilities based upon the difference between the financial statement and tax bases of its assets and liabilities, calculated using enacted applicable tax rates. The Company then assesses the likelihood that its deferred tax assets will be recovered from future taxable income and, to the extent it believes that recovery is not likely, a valuation allowance is established. Changes in the valuation allowance, when recorded, are included in the provision for income taxes in the condensed consolidated financial statements. | |
The Company classifies interest expense and penalties as part of its provision for income taxes based upon applicable federal and state interest/underpayment percentages. The Company has accrued $1,332 and $1,195 in interest and penalties in its condensed consolidated balance sheets at September 30, 2013 and December 31, 2012, respectively. Interest was computed on the difference between the provision for income taxes recognized in accordance with U.S. GAAP and the amount of benefit previously taken or expected to be taken in the Company’s federal, state, and local income tax returns. | |
The Company's federal income tax returns for the tax years 2008 and forward are available for examination by the United States Internal Revenue Service (“IRS”). The IRS completed its examination of the Company's 2008 and 2009 federal income tax returns. On May 1, 2013, the Company received the revenue agent's report, commonly referred to as a “30-day letter”. The Company disputes some of the proposed adjustments raised in the revenue agent's report and has filed a protest. In July, the Company received the revenue agent's rebuttal and is currently awaiting appeal proceedings. The Company continues to believe its reserve for uncertain tax benefits is adequate at September 30, 2013. The Company has agreed to extend its federal statute of limitations for the 2008 tax year until May 31, 2014. In addition, an examination by the IRS of the Company's 2010 and 2011 federal income tax returns commenced in April 2013. | |
The Company's state income tax returns for 2009 through 2012 remain subject to examination by various state authorities, with the latest period closing on December 31, 2017. The Company has not extended the statutes of limitations with respect to years prior to 2009. Such statutes of limitations will expire on or before December 31, 2013, unless extended. | |
The Company’s unrecognized tax benefits of $3,767 and $3,530 at September 30, 2013 and December 31, 2012, respectively, are uncertain tax positions that would impact the Company’s effective tax rate if recognized. The Company is periodically engaged in tax return examinations, reviews of statute of limitations periods, and settlements surrounding income taxes. The Company does not anticipate a material change in its unrecognized tax benefits during the next twelve months. |
Capital_Stock
Capital Stock | 9 Months Ended |
Sep. 30, 2013 | |
Stockholders' Equity Note [Abstract] | ' |
Capital Stock | ' |
CAPITAL STOCK | |
The Company's capital stock is one hundred percent (100%) owned by its active and retired employees, and there is no public trading market for its common stock. Since 1928, substantially all of the issued and outstanding shares of common stock have been held of record by voting trustees under successive voting trust agreements. Under applicable state law, a voting trust may not have a term greater than ten years. At September 30, 2013, approximately eighty-three percent (83%) of the common stock was held in a voting trust that expires by its terms on March 15, 2017. The participation of shareholders in the voting trust is voluntary at the time the voting trust is created, but is irrevocable during its term. Shareholders who elect not to participate in the voting trust hold their common stock as shareholders of record. | |
No shareholder may sell, transfer, or otherwise dispose of shares of common stock or the voting trust interests issued with respect thereto (“common stock”, “common shares”, or “shares”) without first offering the Company the option to purchase such shares at the price at which the shares were issued. The Company also has the option to purchase at the issue price the common stock of any holder who dies or ceases to be an employee of the Company for any cause other than retirement on a Company pension. The Company has always exercised its purchase option and expects to continue to do so. All outstanding shares of the Company have been issued at $20.00 per share. | |
At the Company’s annual meeting of shareholders on June 13, 2013, the shareholders approved an amendment | |
to the Company’s amended Restated Certificate of Incorporation to increase the number of authorized shares of common stock from 20,000,000 to 50,000,000 shares. |
Revolving_Credit_Facility
Revolving Credit Facility | 9 Months Ended |
Sep. 30, 2013 | |
Debt Disclosure [Abstract] | ' |
Revolving Credit Facility | ' |
REVOLVING CREDIT FACILITY | |
On September 30, 2013 and December 31, 2012, the Company and Graybar Canada Limited, the Company's Canadian operating subsidiary (“Graybar Canada”), had an unsecured, five-year, $500,000 revolving credit agreement maturing in September 2016 with Bank of America, N.A. and other lenders named therein, which includes a combined letter of credit sub-facility of up to $50,000, a U.S. swing line loan facility of up to $50,000, and a Canadian swing line loan facility of up to $20,000 (the "Credit Agreement"). The Credit Agreement also includes a $100,000 sublimit (in U.S. or Canadian dollars) for borrowings by Graybar Canada and contains an accordion feature, which allows the Company to request increases in the aggregate borrowing commitments of up to $200,000. | |
On May 29, 2013, the Company and Graybar Canada Limited amended the Credit Agreement to clarify that the Canadian Dealer Offered Rate ("CDOR") would replace Canadian LIBOR, which was discontinued by the British Bankers' Association after May 31, 2013. Effective on the amendment date, borrowings by the Canadian borrower denominated in Canadian dollars under the Credit Agreement bear interest based on, at the Canadian borrower's election, either (i) the base rate (as defined in the Credit Agreement), or (ii) CDOR, in each case plus an applicable margin, as set forth in the pricing grid detailed in the Credit Agreement. Borrowings by the Company are unaffected by this amendment to the Credit Agreement. | |
At September 30, 2013, the Company had total letters of credit of $6,913 outstanding, of which $738 were issued under the $500,000 revolving credit facility. At December 31, 2012, the Company had total letters of credit of $8,938 outstanding, of which $763 were issued under the $500,000 revolving credit facility. The letters of credit are used primarily to support certain workers compensation insurance policies. | |
There were $90,246 and $71,116 in short-term borrowings outstanding under the revolving credit facility at September 30, 2013 and December 31, 2012, respectively. |
Pension_and_Other_Postretireme
Pension and Other Postretirement Benefits | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | ' | |||||||||||||
Pension and Other Postretirement Benefits | ' | |||||||||||||
PENSION AND OTHER POSTRETIREMENT BENEFITS | ||||||||||||||
The Company has a noncontributory defined benefit pension plan covering substantially all full-time employees. The plan provides retirement benefits based on an employee’s average earnings and years of service. Employees become one hundred percent (100%) vested after three years of service, regardless of age. The Company’s plan funding policy is to make contributions provided that the total annual contributions will not be less than the Employee Retirement Income Security Act ("ERISA") and the Pension Protection Act of 2006 minimums or greater than the maximum tax-deductible amount, to review contribution and funding strategy on a regular basis, and to allow discretionary contributions to be made by the Company from time to time. The assets of the defined benefit pension plan are invested primarily in fixed income and equity securities, money market funds, and other investments. | ||||||||||||||
The Company provides certain postretirement health care and life insurance benefits to retired employees. Substantially all of the Company’s employees may become eligible for postretirement medical benefits if they reach the age and service requirements of the retiree medical plan and retire on a service pension under the defined benefit pension plan. Benefits are provided through insurance coverage, with premiums based on the benefits paid during the year. The Company funds postretirement benefits on a pay-as-you-go basis, and accordingly, there were no assets held in the postretirement benefits plan at September 30, 2013 and December 31, 2012. | ||||||||||||||
The net periodic benefit cost for the three and nine months ended September 30, 2013 and 2012 included the following components: | ||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||
Three Months Ended September 30, | Three Months Ended September 30, | |||||||||||||
Components of Net Periodic Benefit Cost | 2013 | 2012 | 2013 | 2012 | ||||||||||
Service cost | $ | 6,030 | $ | 5,554 | $ | 661 | $ | 584 | ||||||
Interest cost | 5,979 | 6,224 | 718 | 838 | ||||||||||
Expected return on plan assets | (5,977 | ) | (5,918 | ) | — | — | ||||||||
Amortization of: | ||||||||||||||
Net actuarial loss | 6,593 | 5,279 | 449 | 430 | ||||||||||
Prior service cost (gain) | 343 | 346 | (545 | ) | (546 | ) | ||||||||
Net periodic benefit cost | $ | 12,968 | $ | 11,485 | $ | 1,283 | $ | 1,306 | ||||||
Pension Benefits | Postretirement Benefits | |||||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
Components of Net Periodic Benefit Cost | 2013 | 2012 | 2013 | 2012 | ||||||||||
Service cost | $ | 18,089 | $ | 16,661 | $ | 1,983 | $ | 1,752 | ||||||
Interest cost | 17,936 | 18,672 | 2,154 | 2,516 | ||||||||||
Expected return on plan assets | (17,931 | ) | (17,753 | ) | — | — | ||||||||
Amortization of: | ||||||||||||||
Net actuarial loss | 19,778 | 15,837 | 1,346 | 1,290 | ||||||||||
Prior service cost (gain) | 1,031 | 1,036 | (1,635 | ) | (1,636 | ) | ||||||||
Net periodic benefit cost | $ | 38,903 | $ | 34,453 | $ | 3,848 | $ | 3,922 | ||||||
The Company made contributions to its defined benefit pension plan totaling $10,000 during each of the three-month periods ended September 30, 2013 and 2012. Contributions made during the nine-month periods ended September 30, 2013 and 2012 each totaled $30,000. Additional contributions totaling $10,800 are expected to be paid during the remainder of 2013. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||||||||
The following tables represent amounts reclassified from accumulated other comprehensive income (loss) for the three months ended September 30, 2013 and 2012: | |||||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||
30-Sep-13 | 30-Sep-12 | ||||||||||||||||||||||||
Amortization of Pension and Other Postretirement Benefits Items | Amortization of Pension and Other Postretirement Benefits Items | ||||||||||||||||||||||||
Actuarial Losses Recognized | Prior Service Costs Recognized | Total | Actuarial Losses Recognized | Prior Service Costs Recognized | Total | ||||||||||||||||||||
Affected Line in Condensed Consolidated Statement of Income: | |||||||||||||||||||||||||
Selling, general and administrative | $ | 7,042 | $ | (202 | ) | $ | 6,840 | $ | 5,707 | $ | (200 | ) | $ | 5,507 | |||||||||||
expenses | |||||||||||||||||||||||||
Tax (benefit) expense | (2,740 | ) | 79 | (2,661 | ) | (2,220 | ) | 78 | (2,142 | ) | |||||||||||||||
Total reclassifications for the period, net of tax | $ | 4,302 | $ | (123 | ) | $ | 4,179 | $ | 3,487 | $ | (122 | ) | $ | 3,365 | |||||||||||
The following tables represent amounts reclassified from accumulated other comprehensive income (loss) for the nine months ended September 30, 2013 and 2012: | |||||||||||||||||||||||||
Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||||
30-Sep-13 | 30-Sep-12 | ||||||||||||||||||||||||
Amortization of Pension and Other Postretirement Benefits Items | Amortization of Pension and Other Postretirement Benefits Items | ||||||||||||||||||||||||
Actuarial Losses Recognized | Prior Service Costs Recognized | Total | Actuarial Losses Recognized | Prior Service Costs Recognized | Total | ||||||||||||||||||||
Affected Line in Condensed Consolidated Statement of Income: | |||||||||||||||||||||||||
Selling, general and administrative expenses | $ | 21,124 | $ | (604 | ) | $ | 20,520 | $ | 17,125 | $ | (600 | ) | $ | 16,525 | |||||||||||
Tax (benefit) expense | (8,219 | ) | 236 | (7,983 | ) | (6,662 | ) | 234 | (6,428 | ) | |||||||||||||||
Total reclassifications for the period, net of tax | $ | 12,905 | $ | (368 | ) | $ | 12,537 | $ | 10,463 | $ | (366 | ) | $ | 10,097 | |||||||||||
The following tables represent the activity included in accumulated other comprehensive income (loss) for the three months ended September 30, 2013 and 2012: | |||||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||
30-Sep-13 | 30-Sep-12 | ||||||||||||||||||||||||
Foreign Currency | Pension and Other Postretirement Benefits | Total | Foreign Currency | Pension and Other Postretirement Benefits | Total | ||||||||||||||||||||
Beginning balance July 1 | $ | 8,018 | $ | (170,496 | ) | $ | (162,478 | ) | $ | 10,075 | $ | (153,689 | ) | $ | (143,614 | ) | |||||||||
Other comprehensive income before reclassifications | 1,519 | — | 1,519 | 2,969 | — | 2,969 | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | — | 4,179 | 4,179 | — | 3,365 | 3,365 | |||||||||||||||||||
Net current-period other comprehensive income | 1,519 | 4,179 | 5,698 | 2,969 | 3,365 | 6,334 | |||||||||||||||||||
Ending balance September 30 | $ | 9,537 | $ | (166,317 | ) | $ | (156,780 | ) | $ | 13,044 | $ | (150,324 | ) | $ | (137,280 | ) | |||||||||
The following tables represent the activity included in accumulated other comprehensive income (loss) for the nine months ended September 30, 2013 and 2012: | |||||||||||||||||||||||||
Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||||
30-Sep-13 | 30-Sep-12 | ||||||||||||||||||||||||
Foreign Currency | Pension and Other Postretirement Benefits | Total | Foreign Currency | Pension and Other Postretirement Benefits | Total | ||||||||||||||||||||
Beginning balance January 1 | $ | 12,040 | $ | (178,854 | ) | $ | (166,814 | ) | $ | 10,057 | $ | (160,421 | ) | $ | (150,364 | ) | |||||||||
Other comprehensive (loss) income before reclassifications | (2,503 | ) | — | (2,503 | ) | 2,987 | — | 2,987 | |||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | — | 12,537 | 12,537 | — | 10,097 | 10,097 | |||||||||||||||||||
Net current-period other comprehensive (loss) income | (2,503 | ) | 12,537 | 10,034 | 2,987 | 10,097 | 13,084 | ||||||||||||||||||
Ending balance September 30 | $ | 9,537 | $ | (166,317 | ) | $ | (156,780 | ) | $ | 13,044 | $ | (150,324 | ) | $ | (137,280 | ) | |||||||||
Assets_Held_For_Sale
Assets Held For Sale | 9 Months Ended |
Sep. 30, 2013 | |
Property, Plant and Equipment Assets Held-for-sale Disclosure [Abstract] | ' |
Assets Held For Sale | ' |
ASSETS HELD FOR SALE | |
The Company considers properties to be assets held for sale when all of the following criteria are met: i) a formal commitment to a plan to sell a property has been made and exercised; ii) the property is available for sale in its present condition; iii) actions required to complete the sale of the property have been initiated; iv) sale of the property is probable and the Company expects the sale will occur within one year; and v) the property is being actively marketed for sale at a price that is reasonable given its current market value. | |
Upon designation as an asset held for sale, the Company records the carrying value of each property at the lower of its carrying value or its estimated fair value, less estimated costs to sell, and depreciation of the property ceases. The net book value of assets held for sale was $7,660 and $3,034 at September 30, 2013 and December 31, 2012, respectively, and is recorded in net property in the condensed consolidated balance sheets. | |
The Company reviews long-lived assets held and used for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. For assets classified as held and used, impairment may occur if projected undiscounted cash flows are not adequate to cover the carrying value of the assets. In such cases, additional analysis is conducted to determine the amount of the loss to be recognized. The impairment loss is calculated as the difference between the carrying amount of the asset and its estimated fair value. The analysis requires estimates of the amount and timing of projected cash flows and, where applicable, selection of an appropriate discount rate. Such estimates are critical in determining whether any impairment charge should be recorded and the amount of such charge if an impairment loss is deemed necessary. | |
For assets held for sale, impairment occurs whenever the net book value of the property listed for sale exceeds the expected selling price less estimated selling expenses. The Company recorded no impairment charges during the three- and nine-month periods ended September 30, 2013. The Company recorded impairment losses totaling $257 to account for the expected losses on two of the properties held for sale during the nine-month period ended September 30, 2012. There were no impairment charges recorded during the three-month period ended September 30, 2012. The impairment losses are included in other income, net in the condensed consolidated statement of income for the nine months ended September 30, 2012. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
COMMITMENTS AND CONTINGENCIES | |
The Company and its subsidiaries are subject to various claims, disputes, and administrative and legal matters incidental to the Company’s past and current business activities. As a result, contingencies may arise resulting from an existing condition, situation, or set of circumstances involving an uncertainty as to the realization of a possible loss. | |
The Company accounts for loss contingencies in accordance with U.S. GAAP. Estimated loss contingencies are accrued only if the loss is probable and the amount of the loss can be reasonably estimated. With respect to a particular loss contingency, it may be probable that a loss has occurred, but the estimate of the loss is a wide range. If the Company deems some amount within the range to be a better estimate than any other amount within the range, that amount will be accrued. However, if no amount within the range is a better estimate than any other amount, the minimum amount of the range is accrued. While the Company believes that none of these claims, disputes, and administrative and legal matters will have a material adverse effect on its financial position, these matters are uncertain and the Company cannot at this time determine whether the financial impact, if any, of these matters will be material to its results of operations in the period during which such matters are resolved or a better estimate becomes available. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The condensed consolidated financial statements included herein have been prepared by Graybar Electric Company, Inc., without audit, pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “Commission”) applicable to interim financial reporting. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations, although the Company believes that its disclosures are adequate to make the information presented not misleading. The preparation of financial statements in accordance with U.S. GAAP requires the use of estimates and assumptions that affect reported amounts. The Company’s condensed consolidated financial statements include amounts that are based on management’s best estimates and judgments. Actual results could differ from those estimates. Certain reclassifications were made to prior year amounts to conform to the 2013 presentation. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto and Management’s Discussion and Analysis of Financial Condition and Results of Operations as of and for the year ended December 31, 2012, included in the Company’s latest Annual Report on Form 10-K. | |
In the opinion of management, this quarterly report includes all adjustments, consisting of normal recurring accruals and adjustments, necessary for the fair presentation of the financial statements presented. Such interim financial information is subject to year-end adjustments. Results for interim periods are not necessarily indicative of results to be expected for the full year. | |
Principles of Consolidation | ' |
Principles of Consolidation | |
The consolidated financial statements include the accounts of Graybar Electric Company, Inc. and its subsidiary companies. All material intercompany balances and transactions have been eliminated. The ownership interests that are held by owners other than the Company in subsidiaries consolidated by the Company are accounted for and reported as noncontrolling interests. | |
Estimates | ' |
Estimates | |
The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities. Actual results could differ from these estimates. | |
Subsequent Events | ' |
Subsequent Events | |
The Company has evaluated subsequent events through the time of the filing of this Quarterly Report on Form 10-Q with the Commission. No material subsequent events have occurred since September 30, 2013 that require recognition or disclosure in these financial statements. | |
Revenue Recognition | ' |
Revenue Recognition | |
Revenue is recognized when evidence of a customer arrangement exists, prices are fixed and determinable, product title, ownership and risk of loss transfers to the customer, and collectability is reasonably assured. Revenues recognized are primarily for product sales, but also include freight and handling charges. The Company’s standard shipping terms are FOB shipping point, under which product title passes to the customer at the time of shipment. The Company does, however, fulfill some customer orders based on shipping terms of FOB destination, whereby title passes to the customer at the time of delivery. The Company also earns revenue for services provided to customers for supply chain management and logistics services. Service revenue is recognized when services are rendered and completed. Revenue is reported net of all taxes assessed by governmental authorities as a result of revenue-producing transactions, primarily sales tax. | |
Outgoing Freight Expenses | ' |
Outgoing Freight Expenses | |
The Company records certain outgoing freight expenses as a component of selling, general and administrative expenses. | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents | |
The Company accounts for cash on hand, deposits in banks, and other short-term, highly liquid investments with an original maturity of three months or less as cash and cash equivalents. | |
Allowance for Doubtful Accounts | ' |
Allowance for Doubtful Accounts | |
The Company performs ongoing credit evaluations of its customers, and a significant portion of its trade receivables is secured by mechanic’s lien or payment bond rights. The Company maintains allowances to reflect the expected uncollectability of trade receivables based on past collection history and specific risks identified in the receivables portfolio. Although actual credit losses have historically been within management’s expectations, additional allowances may be required if the financial condition of the Company’s customers were to deteriorate. | |
Merchandise Inventory | ' |
Merchandise Inventory | |
The Company’s inventory is stated at the lower of cost (determined using the last-in, first-out (“LIFO”) cost method) or market. LIFO accounting is a method of accounting that, compared with other inventory accounting methods, generally provides better matching of current costs with current sales. | |
The Company makes provisions for obsolete or excess inventories as necessary to reflect reductions in inventory value. | |
Supplier Volume Incentives | ' |
Supplier Volume Incentives | |
The Company’s agreements with many of its suppliers provide for the Company to earn volume incentives based on purchases during the agreement period. These agreements typically provide for the incentives to be paid quarterly or annually in arrears. The Company estimates amounts to be received from suppliers at the end of each reporting period based on the earnout level that the Company believes is probable of being achieved. The Company records the incentive ratably over the year as a reduction of cost of merchandise sold as the related inventory is sold. Changes in the estimated amount of incentives are treated as changes in estimate and are recognized in earnings in the period in which the change in estimate occurs. In the event that the operating performance of the Company’s suppliers were to decline, however, there can be no assurance that amounts earned would be paid or that the volume incentives would continue to be included in future agreements. | |
Property and Depreciation | ' |
Property and Depreciation | |
Property, plant and equipment are recorded at cost. Depreciation is expensed on a straight-line basis over the estimated useful lives of the related assets. Interest costs incurred to finance expenditures for major long-term construction projects are capitalized as part of the asset's historical cost and included in property, plant and equipment, then depreciated over the useful life of the asset. Leasehold improvements are amortized over the term of the lease or the estimated useful life of the improvement, whichever is shorter. Expenditures for maintenance and repairs are charged to expense when incurred, while the costs of significant improvements, which extend the useful life of the underlying asset, are capitalized. | |
Credit Risk | ' |
Credit Risk | |
Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of trade receivables. The Company performs ongoing credit evaluations of its customers, and a significant portion of its trade receivables is secured by mechanic’s lien or payment bond rights. The Company maintains allowances for potential credit losses, and such losses historically have been within management’s expectations. | |
Fair Value | ' |
Fair Value | |
The Company endeavors to utilize the best available information in measuring fair value. U.S. GAAP has established a fair value hierarchy, which prioritizes the inputs used in measuring fair value. The tiers in the hierarchy include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own data inputs and assumptions. The Company has used fair value measurements to value its pension plan assets. | |
Foreign Currency Exchange Rate | ' |
Foreign Currency Exchange Rate | |
The functional currency for the Company’s Canadian subsidiary is the Canadian dollar. Accordingly, its balance sheet amounts are translated at the exchange rates in effect at the end of each reporting period and its statements of income amounts are translated at the average rates of exchange prevailing during the current period. Currency translation adjustments are included in accumulated other comprehensive loss. | |
Goodwill | ' |
Goodwill | |
The Company’s goodwill and indefinite-lived intangible assets are not amortized, but rather tested annually for impairment. Goodwill is reviewed annually in the fourth quarter and/or when circumstances or other events might indicate that impairment may have occurred. The Company performs either a qualitative or quantitative assessment of goodwill impairment. The qualitative assessment considers several factors including the excess fair value over carrying value as of the last quantitative impairment test, the length of time since the last fair value measurement, the current carrying value, market conditions, actual performance compared to forecasted performance, and the current business outlook. If the qualitative assessment indicates that it is more likely than not that goodwill is impaired, the reporting unit is quantitatively tested for impairment. If a quantitative assessment is required, the fair value is determined using a variety of assumptions including estimated future cash flows of the reporting unit and applicable discount rates. | |
Income Taxes | ' |
Income Taxes | |
The Company recognizes deferred tax assets and liabilities to reflect the future tax consequences of events that have been recognized in the financial statements or tax returns. Uncertainty exists regarding tax positions taken in previously filed tax returns still subject to examination and positions expected to be taken in future returns. A deferred tax asset or liability results from the temporary difference between an item’s carrying value as reflected in the financial statements and its tax basis, and is calculated using enacted applicable tax rates. The Company assesses the likelihood that its deferred tax assets will be recovered from future taxable income and, to the extent it believes that recovery is not likely, a valuation allowance is established. Changes in the valuation allowance, when recorded, are included in the provision for income taxes in the consolidated financial statements. The Company classifies interest expense and penalties as part of its provision for income taxes based upon applicable federal and state interest/underpayment percentages. | |
Other Postretirement Benefits | ' |
Other Postretirement Benefits | |
The Company accounts for postretirement benefits other than pensions by accruing the costs of benefits to be provided over the employees’ periods of active service. These costs are determined on an actuarial basis. The Company’s consolidated balance sheets reflect the funded status of postretirement benefits. | |
Pension Plan | ' |
Pension Plan | |
The Company sponsors a noncontributory defined benefit pension plan accounted for by accruing the cost to provide the benefits over the employees’ periods of active service. These costs are determined on an actuarial basis. The Company’s consolidated balance sheets reflect the funded status of the defined benefit pension plan. | |
New Accounting Standards | ' |
New Accounting Standards | |
In July 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU” or “Update”) 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” which provides guidance on the financial statement presentation of unrecognized tax benefits when a net operating loss, a similar tax loss, or a tax credit carryforward exists. The requirements are effective for annual reporting periods beginning after December 15, 2013, and interim periods within those annual periods. The Company continues to evaluate the impact that the adoption of this guidance will have on the Company’s financial condition or results of operations. | |
In February 2013, the FASB issued ASU 2013-02, “Comprehensive Income: Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income”, which adds new disclosure requirements for items reclassified out of accumulated other comprehensive income (“AOCI”). The Update requires that the Company present either in a single note or parenthetically on the face of the financial statements, the effect of significant amounts reclassified from each component of AOCI based on its source and the income statement line items affected by the reclassification. The Company adopted this Update as of January 1, 2013, and the adoption did not have any impact on the Company's results of operations, financial position, or cash flows during the three and nine months ended September 30, 2013, other than additional disclosures contained in Note 7. |
Pension_and_Other_Postretireme1
Pension and Other Postretirement Benefits (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Pension and Other Postretirement Benefits [Abstract] | ' | |||||||||||||
Schedule of Net Benefit Costs [Table Text Block] | ' | |||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||
Three Months Ended September 30, | Three Months Ended September 30, | |||||||||||||
Components of Net Periodic Benefit Cost | 2013 | 2012 | 2013 | 2012 | ||||||||||
Service cost | $ | 6,030 | $ | 5,554 | $ | 661 | $ | 584 | ||||||
Interest cost | 5,979 | 6,224 | 718 | 838 | ||||||||||
Expected return on plan assets | (5,977 | ) | (5,918 | ) | — | — | ||||||||
Amortization of: | ||||||||||||||
Net actuarial loss | 6,593 | 5,279 | 449 | 430 | ||||||||||
Prior service cost (gain) | 343 | 346 | (545 | ) | (546 | ) | ||||||||
Net periodic benefit cost | $ | 12,968 | $ | 11,485 | $ | 1,283 | $ | 1,306 | ||||||
Pension Benefits | Postretirement Benefits | |||||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
Components of Net Periodic Benefit Cost | 2013 | 2012 | 2013 | 2012 | ||||||||||
Service cost | $ | 18,089 | $ | 16,661 | $ | 1,983 | $ | 1,752 | ||||||
Interest cost | 17,936 | 18,672 | 2,154 | 2,516 | ||||||||||
Expected return on plan assets | (17,931 | ) | (17,753 | ) | — | — | ||||||||
Amortization of: | ||||||||||||||
Net actuarial loss | 19,778 | 15,837 | 1,346 | 1,290 | ||||||||||
Prior service cost (gain) | 1,031 | 1,036 | (1,635 | ) | (1,636 | ) | ||||||||
Net periodic benefit cost | $ | 38,903 | $ | 34,453 | $ | 3,848 | $ | 3,922 | ||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2013 | |||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
30-Sep-13 | 30-Sep-12 | 30-Sep-13 | 30-Sep-12 | |||||||||||||||||||||||||||||||||||||||||||||||
Amortization of Pension and Other Postretirement Benefits Items | Amortization of Pension and Other Postretirement Benefits Items | Amortization of Pension and Other Postretirement Benefits Items | Amortization of Pension and Other Postretirement Benefits Items | |||||||||||||||||||||||||||||||||||||||||||||||
Actuarial Losses Recognized | Prior Service Costs Recognized | Total | Actuarial Losses Recognized | Prior Service Costs Recognized | Total | Actuarial Losses Recognized | Prior Service Costs Recognized | Total | Actuarial Losses Recognized | Prior Service Costs Recognized | Total | |||||||||||||||||||||||||||||||||||||||
Affected Line in Condensed Consolidated Statement of Income: | Affected Line in Condensed Consolidated Statement of Income: | |||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | $ | 7,042 | $ | (202 | ) | $ | 6,840 | $ | 5,707 | $ | (200 | ) | $ | 5,507 | Selling, general and administrative expenses | $ | 21,124 | $ | (604 | ) | $ | 20,520 | $ | 17,125 | $ | (600 | ) | $ | 16,525 | |||||||||||||||||||||
expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||
Tax (benefit) expense | (2,740 | ) | 79 | (2,661 | ) | (2,220 | ) | 78 | (2,142 | ) | Tax (benefit) expense | (8,219 | ) | 236 | (7,983 | ) | (6,662 | ) | 234 | (6,428 | ) | |||||||||||||||||||||||||||||
Total reclassifications for the period, net of tax | $ | 4,302 | $ | (123 | ) | $ | 4,179 | $ | 3,487 | $ | (122 | ) | $ | 3,365 | Total reclassifications for the period, net of tax | $ | 12,905 | $ | (368 | ) | $ | 12,537 | $ | 10,463 | $ | (366 | ) | $ | 10,097 | |||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
30-Sep-13 | 30-Sep-12 | 30-Sep-13 | 30-Sep-12 | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign Currency | Pension and Other Postretirement Benefits | Total | Foreign Currency | Pension and Other Postretirement Benefits | Total | Foreign Currency | Pension and Other Postretirement Benefits | Total | Foreign Currency | Pension and Other Postretirement Benefits | Total | |||||||||||||||||||||||||||||||||||||||
Beginning balance July 1 | $ | 8,018 | $ | (170,496 | ) | $ | (162,478 | ) | $ | 10,075 | $ | (153,689 | ) | $ | (143,614 | ) | Beginning balance January 1 | $ | 12,040 | $ | (178,854 | ) | $ | (166,814 | ) | $ | 10,057 | $ | (160,421 | ) | $ | (150,364 | ) | |||||||||||||||||
Other comprehensive income before reclassifications | 1,519 | — | 1,519 | 2,969 | — | 2,969 | Other comprehensive (loss) income before reclassifications | (2,503 | ) | — | (2,503 | ) | 2,987 | — | 2,987 | |||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | — | 4,179 | 4,179 | — | 3,365 | 3,365 | Amounts reclassified from accumulated other comprehensive income | — | 12,537 | 12,537 | — | 10,097 | 10,097 | |||||||||||||||||||||||||||||||||||||
Net current-period other comprehensive income | 1,519 | 4,179 | 5,698 | 2,969 | 3,365 | 6,334 | Net current-period other comprehensive (loss) income | (2,503 | ) | 12,537 | 10,034 | 2,987 | 10,097 | 13,084 | ||||||||||||||||||||||||||||||||||||
Ending balance September 30 | $ | 9,537 | $ | (166,317 | ) | $ | (156,780 | ) | $ | 13,044 | $ | (150,324 | ) | $ | (137,280 | ) | Ending balance September 30 | $ | 9,537 | $ | (166,317 | ) | $ | (156,780 | ) | $ | 13,044 | $ | (150,324 | ) | $ | (137,280 | ) | |||||||||||||||||
Income_Taxes_Details
Income Taxes (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Income Tax Contingency [Line Items] | ' | ' |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $3,767 | $3,530 |
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | $1,332 | $1,195 |
Capital_Stock_Ownership_Held_D
Capital Stock Ownership Held (Details) | Sep. 30, 2013 |
Schedule of Ownership Held in Voting Trust [Line Items] | ' |
Percentage Ownership in Voting Trust | 83.00% |
Capital_Stock_Par_Value_of_Sto
Capital Stock Par Value of Stock (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Common Stock, Par or Stated Value Per Share | $20 | $20 |
Capital_Stock_Authorized_Share
Capital Stock Authorized Shares (Details) | Sep. 30, 2013 | Dec. 31, 2012 |
Authorized Shares [Abstract] | ' | ' |
Common Stock, Shares Authorized | 50,000,000 | 20,000,000 |
Revolving_Credit_Facility_Shor
Revolving Credit Facility Short-Term Borrowings (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Short-term Debt [Line Items] | ' | ' |
Other Short-term Borrowings | $90,246 | $71,116 |
Revolving_Credit_Facility_Cred
Revolving Credit Facility Credit Agreement (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Line of Credit Facility [Line Items] | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | $500,000 | ' |
Combined Letter of Credit Sub-Facility | 50,000 | ' |
US Swing Line Loan Facility | 50,000 | ' |
Canadian Swing Line Loan Facility | 20,000 | ' |
Sublimit for Borrowings by Graybar Canada | 100,000 | ' |
Aggregate Borrowing Commitments | 200,000 | ' |
Letters of Credit Outstanding, Amount | 6,913 | 8,938 |
Letters of credit, outstanding under revolving credit facility | $738 | $763 |
Pension_and_Other_Postretireme2
Pension and Other Postretirement Benefits Net Periodic Benefit Cost (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Pension Plans, Defined Benefit | ' | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ' |
Service cost | $6,030 | $5,554 | $18,089 | $16,661 |
Interest cost | 5,979 | 6,224 | 17,936 | 18,672 |
Expected return on plan assets | -5,977 | -5,918 | -17,931 | -17,753 |
Amortization of net actuarial loss | 6,593 | 5,279 | 19,778 | 15,837 |
Amortization of prior service cost (gain) | 343 | 346 | 1,031 | 1,036 |
Net periodic benefit cost | 12,968 | 11,485 | 38,903 | 34,453 |
Other Postretirement Benefit Plans, Defined Benefit | ' | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ' |
Service cost | 661 | 584 | 1,983 | 1,752 |
Interest cost | 718 | 838 | 2,154 | 2,516 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of net actuarial loss | 449 | 430 | 1,346 | 1,290 |
Amortization of prior service cost (gain) | -545 | -546 | -1,635 | -1,636 |
Net periodic benefit cost | $1,283 | $1,306 | $3,848 | $3,922 |
Pension_and_Other_Postretireme3
Pension and Other Postretirement Benefits Contributions (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ' |
Defined Benefit Plan, Contributions by Employer | $10,000 | $10,000 | $30,000 | $30,000 |
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year | ' | ' | $10,800 | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) Changes in Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax | ($162,478) | ($143,614) | ($166,814) | ($150,364) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 1,519 | 2,969 | -2,503 | 2,987 |
Reclassifications From Accumulated Other Comprehensive Income (Loss) | 4,179 | 3,365 | 12,537 | 10,097 |
Other Comprehensive Income (Loss), Net of Tax | 5,698 | 6,334 | 10,034 | 13,084 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | -156,780 | -137,280 | -156,780 | -137,280 |
Accumulated Translation Adjustment [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 8,018 | 10,075 | 12,040 | 10,057 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 1,519 | 2,969 | -2,503 | 2,987 |
Reclassifications From Accumulated Other Comprehensive Income (Loss) | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax | 1,519 | 2,969 | -2,503 | 2,987 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 9,537 | 13,044 | 9,537 | 13,044 |
Accumulated Defined Benefit Plans Adjustment [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax | -170,496 | -153,689 | -178,854 | -160,421 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 | 0 | 0 | 0 |
Reclassifications From Accumulated Other Comprehensive Income (Loss) | 4,179 | 3,365 | 12,537 | 10,097 |
Other Comprehensive Income (Loss), Net of Tax | 4,179 | 3,365 | 12,537 | 10,097 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | ($166,317) | ($150,324) | ($166,317) | ($150,324) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss), before Tax | $7,042 | $5,707 | $21,124 | $17,125 |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net (Gain) Loss, Tax | -2,740 | -2,220 | -8,219 | -6,662 |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net (Gain) Loss, Net of Tax | 4,302 | 3,487 | 12,905 | 10,463 |
Other Comprehensive (Income) Loss, Amortization Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Prior Service Cost (Credit), before Tax | -202 | -200 | -604 | -600 |
Other Comprehensive Income (Loss), Amortization Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Prior Service (Cost) Credit, Tax | 79 | 78 | 236 | 234 |
Other Comprehensive Income (Loss), Amortization Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Prior Service (Cost) Credit, Net of Tax | -123 | -122 | -368 | -366 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax | 6,840 | 5,507 | 20,520 | 16,525 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Tax | -2,661 | -2,142 | -7,983 | -6,428 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | $4,179 | $3,365 | $12,537 | $10,097 |
Assets_Held_For_Sale_Assets_He
Assets Held For Sale Assets Held for Sale (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Long Lived Assets Held-for-sale [Line Items] | ' | ' |
Assets Held-for-sale, Long Lived | $7,660 | $3,034 |
Assets_Held_For_Sale_Impairmen
Assets Held For Sale Impairment Loss (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Impaired Long-Lived Assets Held and Used [Line Items] | ' | ' | ' | ' |
Loss on impairment of property | $0 | $0 | $0 | $257 |