Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 15, 2019 | |
Document and Entity Information [Abstract] | ||
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 | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 21,518,322 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Income Statement [Abstract] | |||
Gross Sales | $ 1,786.1 | $ 1,645 | |
Cash discounts | (8.3) | (7.3) | |
Net Sales | 1,777.8 | 1,637.7 | |
Cost of merchandise sold | (1,439.1) | (1,326.3) | |
Gross Margin | 338.7 | 311.4 | |
Selling, general and administrative expenses | (273.5) | (263.3) | |
Depreciation and amortization | (12.5) | (12.1) | |
Other income, net | 1.3 | 0.8 | |
Income from Operations | 54 | 36.8 | |
Non-operating expenses | (6.6) | (7.5) | |
Income before Provision for Income Taxes | 47.4 | 29.3 | |
Provision for income taxes | (13) | (8.1) | |
Net Income | 34.4 | 21.2 | |
Less: Net income attributable to noncontrolling interests | (0.1) | (0.1) | |
Net Income attributable to Graybar Electric Company, Inc. | $ 34.3 | $ 21.1 | |
Net Income per share of Common Stock (in dollars per share) | $ 1.59 | $ 0.98 | [1] |
Cash Dividends per share of Common Stock (in dollars per share) | $ 0.30 | $ 0.30 | |
Average Common Shares Outstanding (Shares) | 21.6 | 21.5 | |
[1] | (A)Adjusted for the declaration of a 10% stock dividend in 2018, shares related to which were issued in February 2019. Prior to the adjustment, the average common shares outstanding were 19.5 million for the three months ended March 31, 2018. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Income Condensed Consolidated Statements of Income (Parenthetical) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Stock Dividend | 10.00% | |
Average Common Shares Outstanding | 21.6 | 21.5 |
As Reported | ||
Average Common Shares Outstanding | 19.5 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 34.4 | $ 21.2 |
Other Comprehensive Income | ||
Foreign currency translation | 2.1 | (2.6) |
Pension and postretirement benefits liability adjustment (net of tax of $(1.3), $(1.7), respectively) | 3.7 | 4.8 |
Total Other Comprehensive Income | 5.8 | 2.2 |
Comprehensive Income | 40.2 | 23.4 |
Less: comprehensive income attributable to noncontrolling interests, net of tax | 0.2 | 0 |
Comprehensive Income attributable to Graybar Electric Company, Inc. | $ 40 | $ 23.4 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Comprehensive Income Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Pension and postretirement benefits liabilities adjustment, tax | $ (1.3) | $ (1.7) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 85 | $ 58.9 |
Trade receivables (less allowances of $6.0 and $5.9, respectively) | 1,124.2 | 1,187 |
Merchandise inventory | 696.3 | 658.7 |
Other current assets | 53.5 | 54.1 |
Total Current Assets | 1,959 | 1,958.7 |
Property, at cost | ||
Land | 79.5 | 79.4 |
Buildings | 489.6 | 489.2 |
Furniture and fixtures | 234.8 | 233 |
Software | 167.5 | 166.4 |
Finance leases | 22.5 | 21.3 |
Total Property, at cost | 993.9 | 989.3 |
Less – accumulated depreciation and amortization | (574.4) | (565.4) |
Net Property | 419.5 | 423.9 |
Operating Lease Right-of-use Assets | 94.6 | 0 |
Other Non-current Assets | 107.2 | 108.6 |
Total Assets | 2,580.3 | 2,491.2 |
Current Liabilities | ||
Short-term borrowings | 220 | 235 |
Current portion of long-term debt | 3.8 | 3.4 |
Trade accounts payable | 925.3 | 895.2 |
Accrued payroll and benefit costs | 109.5 | 158.2 |
Other accrued taxes | 23.9 | 23.9 |
Current operating lease liabilities | 26 | 0 |
Other current liabilities | 89 | 101 |
Total Current Liabilities | 1,397.5 | 1,416.7 |
Postretirement Benefits Liability | 66.9 | 66.7 |
Pension Liability | 122.5 | 118.6 |
Long-term Debt | 8.7 | 10 |
Non-current Operating Lease Liabilities | 73.1 | 0 |
Other Non-current Liabilities | 3.3 | 8.7 |
Total Liabilities | 1,672 | 1,620.7 |
SHAREHOLDERS’ EQUITY | ||
Outstanding Common Stock | 432.1 | 428.8 |
Advance Payments on Subscriptions to Common Stock | 1.1 | 0 |
Retained Earnings | 705.9 | 678.1 |
Accumulated Other Comprehensive Loss | (234.6) | (240.3) |
Total Graybar Electric Company, Inc. Shareholders’ Equity | 904.5 | 866.6 |
Noncontrolling Interests | 3.8 | 3.9 |
Total Shareholders’ Equity | 908.3 | 870.5 |
Total Liabilities and Shareholders’ Equity | $ 2,580.3 | $ 2,491.2 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 6 | $ 5.9 |
Common, stated value per share | $ 20 | $ 20 |
Authorized | 50,000,000 | 50,000,000 |
Issued to voting trustees | 18,121,975 | 17,754,923 |
Issued to shareholders | 3,815,159 | 3,744,318 |
In treasury, at cost | (334,322) | (58,172) |
Outstanding common stock | 21,602,812 | 21,441,069 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash Flows from Operating Activities | ||
Net Income | $ 34.4 | $ 21.2 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 12.5 | 12.1 |
Non-cash operating lease expense | 7.1 | 0 |
Deferred income taxes | (1.8) | (0.5) |
Net income attributable to noncontrolling interests | (0.1) | (0.1) |
Changes in assets and liabilities: | ||
Trade receivables | 62.8 | 10.8 |
Merchandise inventory | (37.6) | (35.2) |
Other current assets | 0.6 | 11.5 |
Other non-current assets | 0.3 | (6) |
Trade accounts payable | 30.1 | 49.4 |
Accrued payroll and benefit costs | (48.7) | (37.2) |
Other current liabilities | (9.6) | (18.4) |
Other non-current liabilities | 0.5 | 13.5 |
Total adjustments to net income | 16.1 | (0.1) |
Net cash provided by operations | 50.5 | 21.1 |
Cash Flows from Investing Activities | ||
Proceeds from disposal of property | 0.1 | 0.6 |
Capital expenditures for property | (5) | (8.4) |
Net cash used by investing activities | (4.9) | (7.8) |
Cash Flows from Financing Activities | ||
Net (decrease) increase in short-term borrowings | (15) | 10.4 |
Principal payments under finance leases | (2.1) | (2.4) |
Sale of common stock | 9.9 | 9.5 |
Purchases of common stock | (5.5) | (4.7) |
Purchases of noncontrolling interests’ common stock | (0.3) | (0.2) |
Dividends paid | (6.5) | (5.9) |
Net cash (used) provided by financing activities | (19.5) | 6.7 |
Net Increase in Cash | 26.1 | 20 |
Cash, Beginning of Year | 58.9 | 42.8 |
Cash, End of Period | 85 | 62.8 |
Non-cash Investing and Financing Activities | ||
Acquisitions of equipment under finance leases | 1.2 | 0 |
Acquisitions of assets under operating leases | 9.8 | 0 |
Acquisition of software and maintenance under financing arrangement | $ 0 | $ 5 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Changes in Shareholders’ Equity - USD ($) $ in Millions | Total | Common Stock | Common Stock Subscribed, Unissued | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests |
Balance at Dec. 31, 2017 | $ 761.6 | $ 387.7 | $ 0 | $ 619.9 | $ (250.1) | $ 4.1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 21.2 | 21.1 | 0.1 | |||
Other comprehensive income (loss) | 2.2 | 2.3 | (0.1) | |||
Stock issued | 8.4 | 8.4 | ||||
Stock purchased | (4.9) | (4.7) | (0.2) | |||
Advance payments | 1.1 | 1.1 | ||||
Dividends declared | (5.9) | (5.9) | ||||
Balance at Mar. 31, 2018 | 784.5 | 391.4 | 1.1 | 635.9 | (247.8) | 3.9 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Adoption of ASC 606, net of tax | 0.8 | 0.8 | ||||
Balance at Dec. 31, 2018 | 870.5 | 428.8 | 0 | 678.1 | (240.3) | 3.9 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 34.4 | 34.3 | 0.1 | |||
Other comprehensive income (loss) | 5.8 | 5.7 | 0.1 | |||
Stock issued | 8.8 | 8.8 | ||||
Stock purchased | (5.8) | (5.5) | (0.3) | |||
Advance payments | 1.1 | 1.1 | ||||
Dividends declared | (6.5) | (6.5) | ||||
Balance at Mar. 31, 2019 | $ 908.3 | $ 432.1 | $ 1.1 | $ 705.9 | $ (234.6) | $ 3.8 |
Description of the Business
Description of the Business | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business | DESCRIPTION OF THE BUSINESS Graybar Electric Company, Inc. (“Graybar”, “Company”, "we", "our", or "us") is a New York corporation, incorporated in 1925. We are engaged in the distribution of electrical and communications and data networking products and are a provider of related supply chain management and logistics services. We primarily serve customers in the construction, industrial & utility, and commercial, institutional and government ("CIG") vertical markets, with products and services that support new construction, infrastructure updates, building renovation, facility maintenance, repair and operations ("MRO"), and original equipment manufacturers ("OEM"). We purchase all of the products we sell from others, and we neither manufacture nor contract to manufacture any products we sell. Our business activity is primarily based in the United States (“U.S.”). We also have subsidiary operations with distribution facilities in Canada and Puerto Rico. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Our accounting policies conform to generally accepted accounting principles in the U.S. ("GAAP”) and are applied on a consistent basis among all years presented. Significant accounting policies are described below. Basis of Presentation The unaudited condensed consolidated financial statements included herein have been prepared by Graybar 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 GAAP have been condensed or omitted pursuant to such rules and regulations, although we believe that our disclosures are adequate to make the information presented not misleading. The preparation of financial statements in accordance with GAAP requires the use of estimates and assumptions that affect reported amounts. Our condensed consolidated financial statements include amounts that are based on management’s best estimates and judgments. Actual results could differ from those estimates. 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, 2018 , included in our 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 condensed consolidated financial statements presented. Results for interim periods are not necessarily indicative of results to be expected for the full year. Principles of Consolidation The condensed consolidated financial statements include the accounts of Graybar 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 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. Reclassifications Certain reclassifications have been made to prior years' financial information to conform to the December 31, 2018 presentation. Revenue Recognition Sales revenue is recognized when performance obligations are satisfied, which is typically upon delivery of the product to the customer. Sometimes product is purchased from the manufacturer and drop-shipped to the customer. We generally take control of the goods when shipped by the manufacturer and then recognize revenue when control of the product transfers to the customer. Revenues recognized are primarily for product sales, but may also include freight and handling charges. Our standard warehouse shipping terms are FOB shipping point, under which control passes to the customer at the time of shipment. We also earn revenue for professional services, general contracting services, and storage services. Service revenue represented less than 1% of gross sales for the three months ended March 31, 2019 . Revenue is reported net of all taxes assessed by governmental authorities as a result of revenue-producing transactions, primarily sales tax. Outgoing Freight Expenses We record certain outgoing freight expenses as a component of selling, general and administrative expenses. Cash and Cash Equivalents We account 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 We perform ongoing credit evaluations of our customers, and a significant portion of our trade receivables is secured by mechanic’s lien or payment bond rights. We maintain 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 our customers were to deteriorate. Merchandise Inventory Our inventory is stated at the lower of cost (generally 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. We make provisions for obsolete or excess inventories as necessary to reflect reductions in inventory value. Vendor Allowances Our agreements with many of our suppliers provide for us to earn volume incentives based on purchases during the agreement period. Based on the provisions of our vendor agreements, we develop vendor accrual rates by estimating the point at which we will have completed our performance under the agreement and the deferred amounts will be earned. We perform analyses and review historical trends to ensure the deferred amounts earned are appropriately recorded. Certain vendor agreements contain purchase volume incentives that provide for increased funding when graduated purchase volumes are met. Amounts accrued throughout the year are based on estimates of future activity levels, and could be materially impacted if actual purchase volumes differ. 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 our 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 us to concentrations of credit risk consist primarily of trade receivables. We perform ongoing credit evaluations of our customers, and a significant portion of our trade receivables are secured by mechanic’s lien or payment bond rights. We maintain allowances for potential credit losses, and such losses historically have been within management’s expectations. Fair Value We endeavor to utilize the best available information in measuring fair value. 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. We have used fair value measurements to value our pension plan assets. Foreign Currency Exchange Rate The functional currency for our 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 Our goodwill is not amortized, but rather tested annually for impairment. Goodwill is reviewed annually in the fourth quarter and when circumstances or other events might indicate that impairment may have occurred. We first perform a qualitative 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 then 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. Definite Lived Intangible Assets The cost of intangible assets with determinable useful lives is amortized to reflect the pattern of economic benefits consumed, either on a straight-line or accelerated basis over the estimated periods benefited. Customer relationships, trade names and other non-contractual intangible assets with determinable lives are amortized over periods generally ranging from 3 to 20 years. Intangible assets are tested for impairment if events or circumstances occur indicating that the respective asset might be impaired. Income Taxes We recognize deferred tax assets and liabilities to reflect the future tax consequences of events that have been recognized in the financial statements or tax 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. We assess the likelihood that our deferred tax assets will be recovered from future taxable income and, to the extent we believe 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. We classify interest expense and penalties as part of our provision for income taxes based upon applicable federal and state interest/underpayment percentages. We assess uncertainty regarding tax positions taken in previously filed returns and record reserves in accordance with the guidance under the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 740-10, "Accounting for Uncertainty in Income Taxes". Other Postretirement Benefits We account for postretirement benefits other than pensions by accruing the costs of benefits to be provided over the eligible employees’ periods of active service. These costs are determined on an actuarial basis. Our condensed consolidated balance sheets reflect the funded status of postretirement benefits. Pension Plan We sponsor a noncontributory defined benefit pension plan accounted for by accruing the cost to provide the benefits over the eligible employees’ periods of active service. These costs are determined on an actuarial basis. Our condensed consolidated balance sheets reflect the funded status of the defined benefit pension plan. Non-Operating Expenses Non-operating expenses are comprised of interest expense, net and non-service cost components of the net periodic benefit cost for the pension and other postretirement benefit plans. The non-service cost components include interest cost, expected return on plan assets, amortization of net actuarial gains/losses, and amortization of prior service costs/gains. Leases We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, current operating lease liabilities, and non-current operating lease liabilities on our condensed consolidated balance sheet for the quarter ended March 31, 2019. Amounts related to finance leases are included in property and equipment, current portion of long-term debt, and long-term debt on our condensed consolidated balance sheets. ROU assets and lease liabilities are recognized and measured on the date the underlying asset is made available to us. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. We use our incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. For certain leases, such as real estate and information technology (IT) equipment, we account for the lease and non-lease components as a single lease component. All other leases that contain lease and non-lease components are accounted for separately. We have elected as an accounting policy not to apply the recognition requirements for short-term leases. Therefore, leases with a term of twelve months or less are not recorded on the condensed consolidated balance sheets. Lease expenses associated with short-term leases are immaterial and are recorded in the condensed consolidated statements of income in selling, general and administrative expenses. Additionally, for certain vehicle leases, we apply a portfolio approach to account for the operating lease ROU assets and liabilities. New Accounting Standards No new accounting standards that were issued or became effective during 2019 have had or are expected to have a material impact on our condensed consolidated financial statements, except those noted below: In February 2016, the FASB issued Accounting Standard Update (“ASU” or “Update”) 2016-02, “Leases (Topic 842)” ("ASU 2016-02"). The core principle of this new guidance requires a lessee to recognize an ROU asset and lease liability on the balance sheet for both operating and finance leases while disclosing key information about the leasing arrangements. The amendments in ASU 2016-02 are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We adopted the new guidance on January 1, 2019, using a modified retrospective approach. Therefore, comparative periods are presented in accordance with the previous lease guidance and do not include retrospective adjustments to reflect the adoption of the new lease guidance. We elected the package of transitional practical expedients which allows an entity not to reassess whether expired or existing contracts contain leases, lease classification of expired or existing leases, and whether previously capitalized initial direct costs would qualify for capitalization under Topic 842. As the guidance allows, this package can be elected separate of any other practical expedient. As a practical expedient, we have elected as an accounting policy not to separate non-lease components from lease components for real estate properties and information technology. In preparation for adoption of the standard, we have implemented internal controls and key system functionality to enable the preparation of financial information. The standard had a material impact on our condensed consolidated balance sheets, but did not have a material impact on our condensed consolidated statements of income. The most significant impact was the recognition of ROU assets and lease liabilities for operating leases, while our accounting for capital leases remains unchanged. Adoption of the ASU 2016-02 resulted in the recognition of additional ROU assets and lease liabilities for operating leases of $98.1 million at January 1, 2019. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", which introduces new guidance for the accounting for credit losses on certain financial instruments. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. We currently believe that the adoption of this Update will not have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement" ("ASU 2018-13") that makes minor changes to the disclosure requirements on fair value measurements in Topic 820. The guidance eliminates requirements for certain disclosures that are no longer considered cost beneficial and adds new disclosure requirements that the FASB considers pertinent. ASU 2018-13 is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. We are currently evaluating the impact of the adoption of the Update on our consolidated financial statements, but do not expect it to have a material impact. In August 2018, the FASB issued ASU 2018-14, "Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans" ("ASU 2018-14") that makes minor changes to the disclosure requirements for employers that sponsor defined benefit pension and/or other postretirement benefit plans. The guidance eliminates requirements for certain disclosures that are no longer considered cost beneficial and adds new disclosure requirements that the FASB considers pertinent. ASU 2018-14 is effective for fiscal years ending after December 15, 2020 for public entities. Early adoption is permitted. We are currently evaluating the impact of the adoption of the Update on our consolidated financial statements, but do not expect it to have a material impact. In August 2018, the FASB issued ASU 2018-15, "Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract" ("ASU 2018-15") requiring a customer in a cloud computing arrangement that is a service contract to follow the internal use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets. Capitalized implementation costs related to a hosting arrangement that is a service contract will be amortized over the term of the hosting arrangement, beginning when the module or component of the hosting arrangement is ready for its intended use. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years for public entities. Early adoption is permitted. We currently believe that the adoption of this Update will not have a material impact on our consolidated financial statements. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUE The following table summarizes the percentages of our net sales attributable to each of our vertical markets for the three months ended March 31, 2019 and 2018 : Three Months Ended 2019 2018 Construction 59.8 % 58.7 % Industrial & Utility 20.7 22.1 CIG 19.5 19.2 Total net sales 100.0 % 100.0 % We had no material contract assets, contract liabilities, or deferred contract costs recorded on the condensed consolidated balance sheet as of March 31, 2019 and December 31, 2018 . In addition, for the three months ended March 31, 2019 and 2018 , revenue recognized in the reporting period that was included in the contract liability balance at the beginning of the period is not material. Revenue expected to be recognized in any future year related to remaining performance obligations is not material. As permitted in ASC Topic 606, we have elected to omit disclosure related to performance obligations for revenue pertaining to contracts that have an original expected duration of one year or less, to contracts where revenue is recognized as invoiced and to contracts with variable consideration related to wholly unsatisfied performance obligations. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Our unrecognized tax benefits of $2.7 million and $2.6 million at March 31, 2019 and December 31, 2018 , respectively, are uncertain tax positions that would impact our effective tax rate if recognized. We are periodically engaged in tax return examinations, the review of statute of limitation periods, and settlements surrounding income taxes. We do not anticipate a material change in unrecognized tax benefits during the next twelve months. We classify interest expense and penalties as part of our provision for income taxes based upon applicable federal and state interest and underpayment percentages. We have accrued $0.5 million and $0.4 million in interest and penalties at March 31, 2019 and December 31, 2018 , respectively. Interest was computed on the difference between the provision for income taxes recognized in accordance with GAAP and the amount of benefit previously taken or expected to be taken in our federal, state, and local income tax returns. Our federal income tax returns for the tax years 2015 and forward are available for examination by the United States Internal Revenue Service (“IRS”). The statute of limitations for the 2015 federal return will expire on September 15, 2019, unless extended by consent. Our state income tax returns for 2014 through 2018 remain subject to examination by various state authorities with the latest period closing on December 31, 2023. We have not extended the statutes of limitations in any state jurisdictions with respect to years prior to 2014. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Revolving Credit Facility At March 31, 2019 and December 31, 2018 , we, along with Graybar Canada Limited, our Canadian operating subsidiary ("Graybar Canada"), had an unsecured, five -year, $750.0 million revolving credit agreement maturing in August 2023 with Bank of America, N.A. and the other lenders named therein (the "Credit Agreement"), which includes a combined letter of credit sub-facility of up to $25.0 million , a U.S. swing-line loan facility of up to $75.0 million , and a Canadian swing-line loan facility of up to $20.0 million . The Credit Agreement includes a $100.0 million sublimit (in U.S. or Canadian dollars) for borrowings by Graybar Canada. The Credit Agreement contains an accordion feature, which allows us to request increases in the aggregate borrowing commitments of up to $375.0 million . We were in compliance with all covenants under the Credit Agreement as of March 31, 2019 and December 31, 2018 . There were $220.0 million and $235.0 million in short-term borrowings outstanding under the Credit Agreement at March 31, 2019 and December 31, 2018 , respectively. Short-term borrowings outstanding during the three months ended March 31, 2019 and 2018 ranged from a minimum of $120.0 million and $140.0 million to a maximum of $250.0 million and $234.0 million , respectively. At March 31, 2019 , we had unused lines of credit under the Credit Agreement amounting to $529.5 million available, compared to $515.0 million at December 31, 2018 . These lines are available to meet our short-term cash requirements and are subject to annual fees of up to 40 basis points ( 0.40% ). Interest expense, net was $1.8 million and $1.4 million for the three months ended March 31, 2019 and 2018 , respectively. Private Placement Shelf Agreements We have an uncommitted $100.0 million private placement shelf agreement with PGIM, Inc. (the "Prudential Shelf Agreement"), which is expected to allow us to issue senior promissory notes to affiliates of PGIM, Inc. at fixed rate terms to be agreed upon at the time of any issuance during a three-year issuance period ending in August 2020. We also have an uncommitted $100.0 million private placement shelf agreement (the "MetLife Shelf Agreement") with Metropolitan Life Insurance Company and MetLife Investment Advisors, LLC and each other affiliate of MetLife that becomes a party to the agreement (collectively, "MetLife"). The MetLife Shelf Agreement is expected to allow us to issue senior promissory notes to MetLife at fixed or floating rate economic terms to be agreed upon at the time of issuance during a three-year period ending in August 2021. We remain obligated under a most favored lender clause which is designed to ensure that any notes in the future under the Prudential Shelf Agreement and MetLife Shelf Agreement will continue to be of equal ranking with indebtedness under our Credit Agreement. No notes have been issued under either the Prudential Shelf Agreement or the MetLife Shelf Agreement as of March 31, 2019 and December 31, 2018 . Each shelf agreement contains representations and warranties of the Company and the applicable lender, customary events of default and affirmative and negative covenants, customary for agreements of this type. These covenants are substantially similar to those contained in the Credit Agreement, subject to a number of important exceptions and qualifications set forth in the applicable shelf agreement. All outstanding obligations of Graybar under one or both of these agreements may be declared immediately due and payable upon the occurrence of an event of default. We were in compliance with all covenants under the Prudential Shelf Agreement and the MetLife Shelf Agreement as of March 31, 2019 and December 31, 2018 . Letters of Credit We had total letters of credit of $5.6 million outstanding at March 31, 2019 , of which $0.5 million were issued under the Credit Agreement. We had total letters of credit of $5.6 million outstanding at December 31, 2018 , of which none were issued under the Credit Agreement. The letters of credit are issued primarily to support certain workers' compensation insurance policies. |
Leases Leases
Leases Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | LEASES We have operating and finance leases for corporate offices, warehouse buildings, sales offices, branch locations, vehicles, and certain equipment. Our leases have remaining lease terms of one to ten years , some of which may include options to extend the leases for up to five years , and some of which may include options to terminate the leases within one year . In addition to fixed lease payments, we incur variable lease charges that are recognized as incurred. These charges are primarily for maintenance and real estate taxes on leased facilities. As of March 31, 2019 and December 31, 2018 , assets recorded under finance leases net of accumulated depreciation were $9.4 million and $8.7 million , respectively. The components of the lease expense for the three months ended March 31, 2019 were as follows: Three Months Ended March 31, 2019 Operating lease cost $ 8.1 Finance lease cost: Amortization of right-of-use assets 0.5 Interest on lease liabilities 0.2 Total finance lease cost 0.7 Variable lease cost 2.3 Total lease cost $ 11.1 Supplemental balance sheet information at March 31, 2019 related to leases was as follows: March 31, 2019 Operating leases: Operating lease right-of-use assets $ 94.6 Current operating lease liabilities $ 26.0 Non-current operating lease liabilities 73.1 Total operating lease liabilities $ 99.1 Finance leases: Property, at cost $ 22.5 Less – accumulated depreciation and amortization 13.1 Net property $ 9.4 Current obligations of finance leases $ 2.1 Finance leases, net of current obligations 8.7 Total finance lease liabilities $ 10.8 Weighted average remaining lease term: Operating leases 5.1 years Finance leases 5.6 years Weighted average discount rate: Operating leases 3.6 % Finance leases 7.1 % Supplemental cash flow and other information for the three months ended March 31, 2019 related to leases was as follows: Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 8.0 Operating cash flows from finance leases 0.2 Financing cash flows from finance leases 2.1 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 9.8 Finance leases 1.2 Future minimum lease payments under non-cancellable leases as of March 31, 2019 were as follows: March 31, 2019 Operating Leases Finance Leases Future minimum lease payments 2019 (excluding the three months ended March 31, 2019) $ 21.8 $ 2.1 2020 24.9 2.6 2021 18.8 2.5 2022 14.3 1.9 2023 10.0 1.3 Thereafter 18.9 3.0 Total future minimum lease payments $ 108.7 $ 13.4 Less: imputed interest (9.6 ) (2.6 ) Total lease obligation $ 99.1 $ 10.8 Less: current obligations (26.0 ) (2.1 ) Long-term lease obligation $ 73.1 $ 8.7 Disclosures related to periods prior to adoption of Leases (Topic 842) Rental expense was $29.4 million , $27.3 million , and $25.1 million for the twelve months ended December 31, 2018 , 2017 , and 2016 , respectively. Future minimum rental payments required under operating leases that have either initial or remaining noncancelable lease terms in excess of one year as of December 31, 2018 were as follows: For the Years Ending December 31, Minimum Rental Payments 2019 $ 30.0 2020 21.9 2021 16.4 2022 12.3 2023 8.8 After 2023 17.3 |
Leases | LEASES We have operating and finance leases for corporate offices, warehouse buildings, sales offices, branch locations, vehicles, and certain equipment. Our leases have remaining lease terms of one to ten years , some of which may include options to extend the leases for up to five years , and some of which may include options to terminate the leases within one year . In addition to fixed lease payments, we incur variable lease charges that are recognized as incurred. These charges are primarily for maintenance and real estate taxes on leased facilities. As of March 31, 2019 and December 31, 2018 , assets recorded under finance leases net of accumulated depreciation were $9.4 million and $8.7 million , respectively. The components of the lease expense for the three months ended March 31, 2019 were as follows: Three Months Ended March 31, 2019 Operating lease cost $ 8.1 Finance lease cost: Amortization of right-of-use assets 0.5 Interest on lease liabilities 0.2 Total finance lease cost 0.7 Variable lease cost 2.3 Total lease cost $ 11.1 Supplemental balance sheet information at March 31, 2019 related to leases was as follows: March 31, 2019 Operating leases: Operating lease right-of-use assets $ 94.6 Current operating lease liabilities $ 26.0 Non-current operating lease liabilities 73.1 Total operating lease liabilities $ 99.1 Finance leases: Property, at cost $ 22.5 Less – accumulated depreciation and amortization 13.1 Net property $ 9.4 Current obligations of finance leases $ 2.1 Finance leases, net of current obligations 8.7 Total finance lease liabilities $ 10.8 Weighted average remaining lease term: Operating leases 5.1 years Finance leases 5.6 years Weighted average discount rate: Operating leases 3.6 % Finance leases 7.1 % Supplemental cash flow and other information for the three months ended March 31, 2019 related to leases was as follows: Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 8.0 Operating cash flows from finance leases 0.2 Financing cash flows from finance leases 2.1 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 9.8 Finance leases 1.2 Future minimum lease payments under non-cancellable leases as of March 31, 2019 were as follows: March 31, 2019 Operating Leases Finance Leases Future minimum lease payments 2019 (excluding the three months ended March 31, 2019) $ 21.8 $ 2.1 2020 24.9 2.6 2021 18.8 2.5 2022 14.3 1.9 2023 10.0 1.3 Thereafter 18.9 3.0 Total future minimum lease payments $ 108.7 $ 13.4 Less: imputed interest (9.6 ) (2.6 ) Total lease obligation $ 99.1 $ 10.8 Less: current obligations (26.0 ) (2.1 ) Long-term lease obligation $ 73.1 $ 8.7 Disclosures related to periods prior to adoption of Leases (Topic 842) Rental expense was $29.4 million , $27.3 million , and $25.1 million for the twelve months ended December 31, 2018 , 2017 , and 2016 , respectively. Future minimum rental payments required under operating leases that have either initial or remaining noncancelable lease terms in excess of one year as of December 31, 2018 were as follows: For the Years Ending December 31, Minimum Rental Payments 2019 $ 30.0 2020 21.9 2021 16.4 2022 12.3 2023 8.8 After 2023 17.3 |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 3 Months Ended |
Mar. 31, 2019 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Pension and Other Postretirement Benefits | PENSION AND OTHER POSTRETIREMENT BENEFITS We have a noncontributory defined benefit pension plan (the "Pension Plan") covering substantially all employees first hired prior to July 1, 2015 after the completion of one year of service and 1,000 hours of service. The Pension Plan provides retirement benefits based on an employee’s average earnings and years of service. These employees become 100% vested after three years of service, regardless of age. A supplemental benefit plan provides nonqualified pension benefits for compensation in excess of the IRS compensation limits applicable to the Pension Plan and eligible compensation deferred by a participant. Our funding policy is to make contributions to the Pension Plan, provided that the total annual contributions will not be less than ERISA and the Pension Protection Act of 2006 minimums or greater than the maximum tax-deductible amount, to review the contribution and funding strategy on a regular basis, and to allow discretionary contributions to be made by us from time to time. The assets of the Pension Plan are invested primarily in fixed income investments and equity securities. We pay nonqualified pension benefits when they are due according to the terms of the supplemental benefit plan. We provide certain postretirement healthcare and life insurance benefits to retired employees. Substantially all of our employees hired or rehired prior to 2014 may become eligible for postretirement medical benefits if they reach the age and service requirements of the retiree medical plan and retire on a pension (except a deferred pension) under the Pension Plan. Medical benefits are self-insured and claims are administered through a third party administrator. The cost of coverage is determined based on the annual projected plan costs. The participant's premium or cost is determined based on Company guidelines. Postretirement life insurance benefits are insured through an insurance company. We fund postretirement benefits as incurred, and accordingly, there were no assets held in the postretirement benefits plan at March 31, 2019 and December 31, 2018 . The net periodic benefit cost for the three months ended March 31, 2019 and 2018 includes the following components: Pension Benefits Postretirement Benefits Three Months Ended Three Months Ended Components of Net Periodic Benefit Cost 2019 2018 2019 2018 Selling, general, and administrative expenses: Service cost $ 6.5 $ 7.1 $ 0.5 $ 0.6 Total selling, general, and administrative expenses $ 6.5 $ 7.1 $ 0.5 $ 0.6 Non-operating expenses: Interest cost 7.6 7.0 0.8 0.7 Expected return on plan assets (8.6 ) (8.1 ) — — Amortization of: Net actuarial loss 4.9 6.7 0.1 0.2 Prior service cost (gain) — 0.1 — (0.5 ) Total non-operating expenses $ 3.9 $ 5.7 $ 0.9 $ 0.4 Net periodic benefit cost $ 10.4 $ 12.8 $ 1.4 $ 1.0 We made qualified and nonqualified pension contributions totaling $1.7 million and $11.6 million during the three -month periods ended March 31, 2019 and 2018 , respectively. Additional contributions expected to be paid during the remainder of 2019 are not expected to be material, but may change at our discretion. |
Capital Stock
Capital Stock | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Capital Stock | CAPITAL STOCK Our common stock is 100% owned by active and retired employees, and there is no public trading market for our 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. A new Voting Trust Agreement was established effective March 3, 2017, which expires by its terms on March 1, 2027. At March 31, 2019 , approximately 83% of the total shares of common stock was held in the voting trust. 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. Shareholders may elect to participate in the voting trust at any time during the term of the voting trust. No holder of our common stock or voting trust interests representing our common stock ("common stock", "common shares", or "shares") may sell, transfer or otherwise dispose of any shares without first offering us the option to purchase those shares at the price at which they were issued. We also have the option to purchase at the issue price the common shares of any shareholder who ceases to be an employee for any reason other than death or "retirement" (as defined in our amended restated certificate of incorporation), and on the first anniversary of any holder's death. In the past, we have always exercised these purchase options, and we expect to continue to do so in the foreseeable future. However, we can make no assurance that we will continue to exercise our purchase option in the future. All outstanding shares have been issued at $20.00 per share. Cash dividends paid were $6.5 million and $5.9 million for the three months ended March 31, 2019 and 2018 , respectively. We also have authorized 10,000,000 shares of Delegated Authority Preferred Stock (“preferred stock”), par value one cent ( $0.01 ). The preferred stock may be issued in one or more series, with the designations, relative rights, preferences, and limitations of shares of each such series being fixed by a resolution of our Board of Directors. There were no shares of preferred stock outstanding at March 31, 2019 and December 31, 2018 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE LOSS The following table represents amounts reclassified from accumulated other comprehensive loss for the three months ended March 31, 2019 and 2018 : Three Months Ended Three Months Ended 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: Non-operating expenses $ 5.0 $ — $ 5.0 $ 6.9 $ (0.4 ) $ 6.5 Tax (benefit) expense (1.3 ) — (1.3 ) (1.8 ) 0.1 (1.7 ) Total reclassifications for the period, net of tax $ 3.7 $ — $ 3.7 $ 5.1 $ (0.3 ) $ 4.8 The following table represents the activity included in accumulated other comprehensive loss for the three months ended March 31, 2019 and 2018 : Three Months Ended Three Months Ended Foreign Currency Pension and Other Postretirement Benefits Total Foreign Currency Pension and Other Postretirement Benefits Total Beginning balance January 1 $ (12.4 ) $ (227.9 ) $ (240.3 ) $ (4.6 ) $ (245.5 ) $ (250.1 ) Other comprehensive income (loss) before reclassifications 2.0 — 2.0 (2.5 ) — (2.5 ) Amounts reclassified from accumulated other comprehensive income (net of tax $(1.3) and $(1.7)) — 3.7 3.7 — 4.8 4.8 Net current-period other comprehensive income (loss) 2.0 3.7 5.7 (2.5 ) 4.8 2.3 Ending balance March 31 $ (10.4 ) $ (224.2 ) $ (234.6 ) $ (7.1 ) $ (240.7 ) $ (247.8 ) |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Graybar and our subsidiaries are subject to various claims, disputes, and administrative and legal matters incidental to our past and current business activities. As a result, contingencies arise resulting from an existing condition, situation, or set of circumstances involving an uncertainty as to the realization of a possible loss. 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 we deem an 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 we believe that none of these claims, disputes, administrative, and legal matters will have a material adverse effect on our financial position, these matters are uncertain and we cannot at this time determine whether the financial impact, if any, of these matters will be material to our results of operations in the period in which such matters are resolved or a better estimate becomes available. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited condensed consolidated financial statements included herein have been prepared by Graybar 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 GAAP have been condensed or omitted pursuant to such rules and regulations, although we believe that our disclosures are adequate to make the information presented not misleading. The preparation of financial statements in accordance with GAAP requires the use of estimates and assumptions that affect reported amounts. Our condensed consolidated financial statements include amounts that are based on management’s best estimates and judgments. Actual results could differ from those estimates. 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, 2018 , included in our 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 condensed consolidated financial statements presented. Results for interim periods are not necessarily indicative of results to be expected for the full year. |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements include the accounts of Graybar 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 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. |
Reclassification | Reclassifications Certain reclassifications have been made to prior years' financial information to conform to the December 31, 2018 presentation. |
Revenue Recognition | Revenue Recognition Sales revenue is recognized when performance obligations are satisfied, which is typically upon delivery of the product to the customer. Sometimes product is purchased from the manufacturer and drop-shipped to the customer. We generally take control of the goods when shipped by the manufacturer and then recognize revenue when control of the product transfers to the customer. Revenues recognized are primarily for product sales, but may also include freight and handling charges. Our standard warehouse shipping terms are FOB shipping point, under which control passes to the customer at the time of shipment. We also earn revenue for professional services, general contracting services, and storage services. Service revenue represented less than 1% of gross sales for the three months ended March 31, 2019 . 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 We record certain outgoing freight expenses as a component of selling, general and administrative expenses. |
Cash and Cash Equivalents | Cash and Cash Equivalents We account 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 We perform ongoing credit evaluations of our customers, and a significant portion of our trade receivables is secured by mechanic’s lien or payment bond rights. We maintain 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 our customers were to deteriorate. |
Merchandise Inventory | Merchandise Inventory Our inventory is stated at the lower of cost (generally 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. We make provisions for obsolete or excess inventories as necessary to reflect reductions in inventory value. |
Vendor Allowances | Vendor Allowances Our agreements with many of our suppliers provide for us to earn volume incentives based on purchases during the agreement period. Based on the provisions of our vendor agreements, we develop vendor accrual rates by estimating the point at which we will have completed our performance under the agreement and the deferred amounts will be earned. We perform analyses and review historical trends to ensure the deferred amounts earned are appropriately recorded. Certain vendor agreements contain purchase volume incentives that provide for increased funding when graduated purchase volumes are met. Amounts accrued throughout the year are based on estimates of future activity levels, and could be materially impacted if actual purchase volumes differ. 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 our 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 us to concentrations of credit risk consist primarily of trade receivables. We perform ongoing credit evaluations of our customers, and a significant portion of our trade receivables are secured by mechanic’s lien or payment bond rights. We maintain allowances for potential credit losses, and such losses historically have been within management’s expectations. |
Fair Value | Fair Value We endeavor to utilize the best available information in measuring fair value. 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. We have used fair value measurements to value our pension plan assets. |
Foreign Currency Exchange Rate | Foreign Currency Exchange Rate The functional currency for our 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 Our goodwill is not amortized, but rather tested annually for impairment. Goodwill is reviewed annually in the fourth quarter and when circumstances or other events might indicate that impairment may have occurred. We first perform a qualitative 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 then 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. |
Definite Lived Intangible Assets | Definite Lived Intangible Assets The cost of intangible assets with determinable useful lives is amortized to reflect the pattern of economic benefits consumed, either on a straight-line or accelerated basis over the estimated periods benefited. Customer relationships, trade names and other non-contractual intangible assets with determinable lives are amortized over periods generally ranging from 3 to 20 years. Intangible assets are tested for impairment if events or circumstances occur indicating that the respective asset might be impaired. |
Income Taxes | Income Taxes We recognize deferred tax assets and liabilities to reflect the future tax consequences of events that have been recognized in the financial statements or tax 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. We assess the likelihood that our deferred tax assets will be recovered from future taxable income and, to the extent we believe 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. We classify interest expense and penalties as part of our provision for income taxes based upon applicable federal and state interest/underpayment percentages. We assess uncertainty regarding tax positions taken in previously filed returns and record reserves in accordance with the guidance under the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 740-10, "Accounting for Uncertainty in Income Taxes". |
Other Postretirement Benefits | Other Postretirement Benefits We account for postretirement benefits other than pensions by accruing the costs of benefits to be provided over the eligible employees’ periods of active service. These costs are determined on an actuarial basis. Our condensed consolidated balance sheets reflect the funded status of postretirement benefits. |
Pension Plan | Pension Plan We sponsor a noncontributory defined benefit pension plan accounted for by accruing the cost to provide the benefits over the eligible employees’ periods of active service. These costs are determined on an actuarial basis. Our condensed consolidated balance sheets reflect the funded status of the defined benefit pension plan. |
Non-Operating Expenses | Non-Operating Expenses Non-operating expenses are comprised of interest expense, net and non-service cost components of the net periodic benefit cost for the pension and other postretirement benefit plans. The non-service cost components include interest cost, expected return on plan assets, amortization of net actuarial gains/losses, and amortization of prior service costs/gains. |
Lessee, Leases | Leases We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, current operating lease liabilities, and non-current operating lease liabilities on our condensed consolidated balance sheet for the quarter ended March 31, 2019. Amounts related to finance leases are included in property and equipment, current portion of long-term debt, and long-term debt on our condensed consolidated balance sheets. ROU assets and lease liabilities are recognized and measured on the date the underlying asset is made available to us. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. We use our incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. For certain leases, such as real estate and information technology (IT) equipment, we account for the lease and non-lease components as a single lease component. All other leases that contain lease and non-lease components are accounted for separately. We have elected as an accounting policy not to apply the recognition requirements for short-term leases. Therefore, leases with a term of twelve months or less are not recorded on the condensed consolidated balance sheets. Lease expenses associated with short-term leases are immaterial and are recorded in the condensed consolidated statements of income in selling, general and administrative expenses. Additionally, for certain vehicle leases, we apply a portfolio approach to account for the operating lease ROU assets and liabilities. |
New Accounting Standards | New Accounting Standards No new accounting standards that were issued or became effective during 2019 have had or are expected to have a material impact on our condensed consolidated financial statements, except those noted below: In February 2016, the FASB issued Accounting Standard Update (“ASU” or “Update”) 2016-02, “Leases (Topic 842)” ("ASU 2016-02"). The core principle of this new guidance requires a lessee to recognize an ROU asset and lease liability on the balance sheet for both operating and finance leases while disclosing key information about the leasing arrangements. The amendments in ASU 2016-02 are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We adopted the new guidance on January 1, 2019, using a modified retrospective approach. Therefore, comparative periods are presented in accordance with the previous lease guidance and do not include retrospective adjustments to reflect the adoption of the new lease guidance. We elected the package of transitional practical expedients which allows an entity not to reassess whether expired or existing contracts contain leases, lease classification of expired or existing leases, and whether previously capitalized initial direct costs would qualify for capitalization under Topic 842. As the guidance allows, this package can be elected separate of any other practical expedient. As a practical expedient, we have elected as an accounting policy not to separate non-lease components from lease components for real estate properties and information technology. In preparation for adoption of the standard, we have implemented internal controls and key system functionality to enable the preparation of financial information. The standard had a material impact on our condensed consolidated balance sheets, but did not have a material impact on our condensed consolidated statements of income. The most significant impact was the recognition of ROU assets and lease liabilities for operating leases, while our accounting for capital leases remains unchanged. Adoption of the ASU 2016-02 resulted in the recognition of additional ROU assets and lease liabilities for operating leases of $98.1 million at January 1, 2019. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", which introduces new guidance for the accounting for credit losses on certain financial instruments. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. We currently believe that the adoption of this Update will not have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement" ("ASU 2018-13") that makes minor changes to the disclosure requirements on fair value measurements in Topic 820. The guidance eliminates requirements for certain disclosures that are no longer considered cost beneficial and adds new disclosure requirements that the FASB considers pertinent. ASU 2018-13 is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. We are currently evaluating the impact of the adoption of the Update on our consolidated financial statements, but do not expect it to have a material impact. In August 2018, the FASB issued ASU 2018-14, "Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans" ("ASU 2018-14") that makes minor changes to the disclosure requirements for employers that sponsor defined benefit pension and/or other postretirement benefit plans. The guidance eliminates requirements for certain disclosures that are no longer considered cost beneficial and adds new disclosure requirements that the FASB considers pertinent. ASU 2018-14 is effective for fiscal years ending after December 15, 2020 for public entities. Early adoption is permitted. We are currently evaluating the impact of the adoption of the Update on our consolidated financial statements, but do not expect it to have a material impact. In August 2018, the FASB issued ASU 2018-15, "Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract" ("ASU 2018-15") requiring a customer in a cloud computing arrangement that is a service contract to follow the internal use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets. Capitalized implementation costs related to a hosting arrangement that is a service contract will be amortized over the term of the hosting arrangement, beginning when the module or component of the hosting arrangement is ready for its intended use. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years for public entities. Early adoption is permitted. We currently believe that the adoption of this Update will not have a material impact on our consolidated financial statements. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table summarizes the percentages of our net sales attributable to each of our vertical markets for the three months ended March 31, 2019 and 2018 : Three Months Ended 2019 2018 Construction 59.8 % 58.7 % Industrial & Utility 20.7 22.1 CIG 19.5 19.2 Total net sales 100.0 % 100.0 % |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Lease, Cost | Supplemental cash flow and other information for the three months ended March 31, 2019 related to leases was as follows: Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 8.0 Operating cash flows from finance leases 0.2 Financing cash flows from finance leases 2.1 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 9.8 Finance leases 1.2 The components of the lease expense for the three months ended March 31, 2019 were as follows: Three Months Ended March 31, 2019 Operating lease cost $ 8.1 Finance lease cost: Amortization of right-of-use assets 0.5 Interest on lease liabilities 0.2 Total finance lease cost 0.7 Variable lease cost 2.3 Total lease cost $ 11.1 |
Supplemental Balance Sheet Disclosures | Supplemental balance sheet information at March 31, 2019 related to leases was as follows: March 31, 2019 Operating leases: Operating lease right-of-use assets $ 94.6 Current operating lease liabilities $ 26.0 Non-current operating lease liabilities 73.1 Total operating lease liabilities $ 99.1 Finance leases: Property, at cost $ 22.5 Less – accumulated depreciation and amortization 13.1 Net property $ 9.4 Current obligations of finance leases $ 2.1 Finance leases, net of current obligations 8.7 Total finance lease liabilities $ 10.8 Weighted average remaining lease term: Operating leases 5.1 years Finance leases 5.6 years Weighted average discount rate: Operating leases 3.6 % Finance leases 7.1 % |
Lessee, Operating Lease, Liability, Maturity | Future minimum lease payments under non-cancellable leases as of March 31, 2019 were as follows: March 31, 2019 Operating Leases Finance Leases Future minimum lease payments 2019 (excluding the three months ended March 31, 2019) $ 21.8 $ 2.1 2020 24.9 2.6 2021 18.8 2.5 2022 14.3 1.9 2023 10.0 1.3 Thereafter 18.9 3.0 Total future minimum lease payments $ 108.7 $ 13.4 Less: imputed interest (9.6 ) (2.6 ) Total lease obligation $ 99.1 $ 10.8 Less: current obligations (26.0 ) (2.1 ) Long-term lease obligation $ 73.1 $ 8.7 |
Finance Lease, Liability, Maturity | Future minimum lease payments under non-cancellable leases as of March 31, 2019 were as follows: March 31, 2019 Operating Leases Finance Leases Future minimum lease payments 2019 (excluding the three months ended March 31, 2019) $ 21.8 $ 2.1 2020 24.9 2.6 2021 18.8 2.5 2022 14.3 1.9 2023 10.0 1.3 Thereafter 18.9 3.0 Total future minimum lease payments $ 108.7 $ 13.4 Less: imputed interest (9.6 ) (2.6 ) Total lease obligation $ 99.1 $ 10.8 Less: current obligations (26.0 ) (2.1 ) Long-term lease obligation $ 73.1 $ 8.7 |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum rental payments required under operating leases that have either initial or remaining noncancelable lease terms in excess of one year as of December 31, 2018 were as follows: For the Years Ending December 31, Minimum Rental Payments 2019 $ 30.0 2020 21.9 2021 16.4 2022 12.3 2023 8.8 After 2023 17.3 |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Schedule of Net Benefit Costs | The net periodic benefit cost for the three months ended March 31, 2019 and 2018 includes the following components: Pension Benefits Postretirement Benefits Three Months Ended Three Months Ended Components of Net Periodic Benefit Cost 2019 2018 2019 2018 Selling, general, and administrative expenses: Service cost $ 6.5 $ 7.1 $ 0.5 $ 0.6 Total selling, general, and administrative expenses $ 6.5 $ 7.1 $ 0.5 $ 0.6 Non-operating expenses: Interest cost 7.6 7.0 0.8 0.7 Expected return on plan assets (8.6 ) (8.1 ) — — Amortization of: Net actuarial loss 4.9 6.7 0.1 0.2 Prior service cost (gain) — 0.1 — (0.5 ) Total non-operating expenses $ 3.9 $ 5.7 $ 0.9 $ 0.4 Net periodic benefit cost $ 10.4 $ 12.8 $ 1.4 $ 1.0 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Reclassification out of Accumulated Other Comprehensive Income | The following table represents amounts reclassified from accumulated other comprehensive loss for the three months ended March 31, 2019 and 2018 : Three Months Ended Three Months Ended 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: Non-operating expenses $ 5.0 $ — $ 5.0 $ 6.9 $ (0.4 ) $ 6.5 Tax (benefit) expense (1.3 ) — (1.3 ) (1.8 ) 0.1 (1.7 ) Total reclassifications for the period, net of tax $ 3.7 $ — $ 3.7 $ 5.1 $ (0.3 ) $ 4.8 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table represents the activity included in accumulated other comprehensive loss for the three months ended March 31, 2019 and 2018 : Three Months Ended Three Months Ended Foreign Currency Pension and Other Postretirement Benefits Total Foreign Currency Pension and Other Postretirement Benefits Total Beginning balance January 1 $ (12.4 ) $ (227.9 ) $ (240.3 ) $ (4.6 ) $ (245.5 ) $ (250.1 ) Other comprehensive income (loss) before reclassifications 2.0 — 2.0 (2.5 ) — (2.5 ) Amounts reclassified from accumulated other comprehensive income (net of tax $(1.3) and $(1.7)) — 3.7 3.7 — 4.8 4.8 Net current-period other comprehensive income (loss) 2.0 3.7 5.7 (2.5 ) 4.8 2.3 Ending balance March 31 $ (10.4 ) $ (224.2 ) $ (234.6 ) $ (7.1 ) $ (240.7 ) $ (247.8 ) |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - Revenue from Contract with Customer [Member] | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Total net sales | 100.00% | 100.00% |
Construction | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 59.80% | 58.70% |
Industrial & Utility | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 20.70% | 22.10% |
CIG | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 19.50% | 19.20% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefits | $ 2.7 | $ 2.6 |
Accrued interest and penalties | $ 0.5 | $ 0.4 |
Debt - Credit Agreement (Detail
Debt - Credit Agreement (Details) - USD ($) | Aug. 10, 2018 | Mar. 31, 2019 | Dec. 31, 2018 |
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Remaining Borrowing Capacity | $ 529,500,000 | $ 515,000,000 | |
Commitment fee percentage | 0.40% | ||
Line of Credit | Credit Agreement [Member] | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Term | 5 years | ||
Maximum borrowing capacity | $ 750,000,000 | ||
Accordion feature, higher borrowing capacity option | 375,000,000 | ||
Line of Credit | Credit Agreement [Member] | Letter of Credit Sub-Facility | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 25,000,000 | ||
Line of Credit | Credit Agreement [Member] | Bridge Loan | Graybar Canada | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 100,000,000 | ||
Line of Credit | Credit Agreement [Member] | Bridge Loan | UNITED STATES | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 75,000,000 | ||
Line of Credit | Credit Agreement [Member] | Bridge Loan | CANADA | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 20,000,000 | ||
Letter of Credit | |||
Line of Credit Facility [Line Items] | |||
Letters of credit outstanding, amount | $ 5,600,000 | 5,600,000 | |
Letter of Credit | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Letters of credit outstanding, amount | $ 500,000 | $ 0 |
Debt - Short-Term Borrowings (D
Debt - Short-Term Borrowings (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Line of Credit Facility [Line Items] | |||
Short-term borrowings | $ 220 | $ 235 | |
Interest expense, net | 1.8 | $ 1.4 | |
Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Short-term borrowings | 220 | $ 235 | |
Minimum | |||
Line of Credit Facility [Line Items] | |||
Short-term borrowings | 120 | 140 | |
Maximum | |||
Line of Credit Facility [Line Items] | |||
Short-term borrowings | $ 250 | $ 234 |
Debt - Private Placement Shelf
Debt - Private Placement Shelf Agreement (Details) - Maximum - Senior Notes $ in Millions | Aug. 10, 2018USD ($) |
Prudential Private Placement Shelf Agreement | |
Debt Instrument [Line Items] | |
Agreement face amount | $ 100 |
MetLife Private Placement Shelf Agreement | |
Debt Instrument [Line Items] | |
Agreement face amount | $ 100 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Lessee, Lease, Description [Line Items] | ||||
Operating and Finance Lease, Option to Extend | 5 years | |||
Operating and Finance Lease, Option to Terminate | 1 year | |||
Finance lease, right of use asset | $ 9.4 | $ 8.7 | ||
Operating Leases, Rent Expense | $ 29.4 | $ 27.3 | $ 25.1 | |
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating And Finance Leases Remaining Lease Term | 1 year | |||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating And Finance Leases Remaining Lease Term | 10 years |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 8.1 |
Finance Lease, Cost [Abstract] | |
Amortization of right-of-use assets | 0.5 |
Interest on lease liabilities | 0.2 |
Total finance lease cost | 0.7 |
Variable lease cost | 2.3 |
Total lease cost | $ 11.1 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 94.6 | $ 0 |
Current operating lease liabilities | 26 | 0 |
Non-current Operating Lease Liabilities | 73.1 | 0 |
Total operating lease liabilities | 99.1 | |
Finance leases: | ||
Property, at cost | 22.5 | |
Less – accumulated depreciation and amortization | 13.1 | |
Net property | 9.4 | $ 8.7 |
Current obligations of finance leases | 2.1 | |
Finance leases, net of current obligations | 8.7 | |
Total finance lease liabilities | $ 10.8 | |
Operating Lease, Weighted Average Remaining Lease Term | 5 years 22 days | |
Finance Lease, Weighted Average Remaining Lease Term | 5 years 7 months 5 days | |
Operating Lease, Weighted Average Discount Rate, Percent | 3.60% | |
Finance Lease, Weighted Average Discount Rate, Percent | 7.10% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 8 | |
Operating cash flows from finance leases | 0.2 | |
Financing cash flows from finance leases | 2.1 | |
Right-of-use assets obtained in exchange for Operating Leases | 9.8 | $ 0 |
Right-of-use assets obtained in exchange for Finance leases | $ 1.2 | $ 0 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments After the Adoption of ASC 842 (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Operating Lease Liabilities, Payments Due [Abstract] | ||
2019 (excluding the three monthes ended March 31, 2019) | $ 21.8 | |
2020 | 24.9 | |
2021 | 18.8 | |
2022 | 14.3 | |
2023 | 10 | |
Thereafter | 18.9 | |
Total future minimum lease payments | 108.7 | |
Less: imputed interest | (9.6) | |
Total operating lease liabilities | 99.1 | |
Less: current obligations | 26 | $ 0 |
Long-term lease obligation | 73.1 | $ 0 |
Finance Lease Liabilities, Payments, Due [Abstract] | ||
2019 (excluding the three months ended March 31, 2019) | 2.1 | |
2020 | 2.6 | |
2021 | 2.5 | |
2022 | 1.9 | |
2023 | 1.3 | |
Thereafter | 3 | |
Total future minimum lease payments | 13.4 | |
Less: imputed interest | (2.6) | |
Total finance lease liabilities | 10.8 | |
Less: current obligations | 2.1 | |
Long-term lease obligation | $ 8.7 |
Leases - Lease Disclosure Prior
Leases - Lease Disclosure Prior to Adoption of ASC 842 (Details) $ in Millions | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 30 |
2020 | 21.9 |
2021 | 16.4 |
2022 | 12.3 |
2023 | 8.8 |
After 2023 | $ 17.3 |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefits - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | ||
Requisite service period | 3 years | |
Contributions by employer | $ 1.7 | $ 11.6 |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefits - Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Selling, General and Administrative Expense | $ 273.5 | $ 263.3 |
Non-operating Expense | 6.6 | 7.5 |
Pension Plans, Defined Benefit | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Service cost | 6.5 | 7.1 |
Selling, General and Administrative Expense | 6.5 | 7.1 |
Interest cost | 7.6 | 7 |
Expected return on plan assets | (8.6) | (8.1) |
Amortization of: Net actuarial loss | 4.9 | 6.7 |
Amortization of: Prior service cost (gain) | 0 | 0.1 |
Non-operating Expense | 3.9 | 5.7 |
Net periodic benefit cost | 10.4 | 12.8 |
Other Postretirement Benefit Plans, Defined Benefit | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Service cost | 0.5 | 0.6 |
Selling, General and Administrative Expense | 0.5 | 0.6 |
Interest cost | 0.8 | 0.7 |
Expected return on plan assets | 0 | 0 |
Amortization of: Net actuarial loss | 0.1 | 0.2 |
Amortization of: Prior service cost (gain) | 0 | (0.5) |
Non-operating Expense | 0.9 | 0.4 |
Net periodic benefit cost | $ 1.4 | $ 1 |
Capital Stock (Details)
Capital Stock (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Equity [Abstract] | |||
Percent of entity owned by current and retired employees | 100.00% | ||
Percent of entity held in voting trust | 83.00% | ||
Common, stated value (in dollars per share) | $ 20 | $ 20 | |
Dividends, Common Stock, Cash | $ 6.5 | $ 5.9 | |
Preferred Stock, Shares Authorized | 10,000,000 | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | ||
Preferred Stock, Shares Outstanding | 0 | 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Tax (benefit) expense | $ 13 | $ 8.1 |
Total reclassifications for the period, net of tax | (34.4) | (21.2) |
Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Non-operating expenses | 5 | 6.5 |
Tax (benefit) expense | (1.3) | (1.7) |
Total reclassifications for the period, net of tax | 3.7 | 4.8 |
Actuarial Losses Recognized | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Non-operating expenses | 5 | 6.9 |
Tax (benefit) expense | (1.3) | (1.8) |
Total reclassifications for the period, net of tax | 3.7 | 5.1 |
Prior Service Costs Recognized | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Non-operating expenses | 0 | (0.4) |
Tax (benefit) expense | 0 | 0.1 |
Total reclassifications for the period, net of tax | $ 0 | $ (0.3) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | $ (240.3) | $ (250.1) |
Other comprehensive income (loss) before reclassifications | 2 | (2.5) |
Amounts reclassified from accumulated other comprehensive income (net of tax) | 3.7 | 4.8 |
Net current-period other comprehensive income (loss) | 5.7 | 2.3 |
Ending balance | (234.6) | (247.8) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, Tax | (1.3) | (1.7) |
Foreign Currency | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (12.4) | (4.6) |
Other comprehensive income (loss) before reclassifications | 2 | (2.5) |
Amounts reclassified from accumulated other comprehensive income (net of tax) | 0 | 0 |
Net current-period other comprehensive income (loss) | 2 | (2.5) |
Ending balance | (10.4) | (7.1) |
Pension and Other Postretirement Benefits | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (227.9) | (245.5) |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income (net of tax) | 3.7 | 4.8 |
Net current-period other comprehensive income (loss) | 3.7 | 4.8 |
Ending balance | $ (224.2) | $ (240.7) |