Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 15, 2021 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Current Fiscal Year End Date | --12-31 | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 000-00255 | |
Entity Registrant Name | GRAYBAR ELECTRIC COMPANY, INC. | |
Entity Incorporation, State or Country Code | NY | |
Entity Tax Identification Number | 13-0794380 | |
Entity Address, Address Line One | 34 North Meramec Avenue | |
Entity Address, City or Town | St. Louis | |
Entity Address, State or Province | MO | |
Entity Address, Postal Zip Code | 63105 | |
City Area Code | 314 | |
Local Phone Number | 573 - 9200 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 22,814,618 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Central Index Key | 0000205402 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Condensed Consolidated Statements Of Income [Abstract] | ||
Net sales | $ 1,900.5 | $ 1,773.2 |
Cost of merchandise sold | (1,539.6) | (1,432.8) |
Gross Margin | 360.9 | 340.4 |
Selling, general and administrative expenses | (277.9) | (290.1) |
Depreciation and amortization | (12.2) | (13.2) |
Other income, net | 0.5 | 0.6 |
Income from Operations | 71.3 | 37.7 |
Non-operating expenses | (7.8) | (7.5) |
Income before Provision for Income Taxes | 63.5 | 30.2 |
Provision for income taxes | (16.2) | (8.7) |
Net Income | 47.3 | 21.5 |
Net income attributable to noncontrolling interests | (0.1) | (0.1) |
Net Income attributable to Graybar Electric Company, Inc. | $ 47.2 | $ 21.4 |
Net Income attributable to Graybar Electric Company, Inc. per share of Common Stock | $ 2.07 | $ 0.94 |
Cash Dividends per share of Common Stock | $ 0.30 | $ 0.30 |
Average Common Shares Outstanding | 22.8 | 22.7 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Condensed Consolidated Statements Of Comprehensive Income [Abstract] | ||
Net Income | $ 47.3 | $ 21.5 |
Other Comprehensive Income | ||
Foreign currency translation | 1.5 | (9.2) |
Pension and postretirement benefits liability adjustment (net of tax of $(2.3), and $(1.9), respectively) | 6.6 | 5.5 |
Total Other Comprehensive Income (Loss) | 8.1 | (3.7) |
Comprehensive Income | 55.4 | 17.8 |
Less: Comprehensive income (loss) attributable to noncontrolling interests, net of tax | 0.2 | (0.2) |
Comprehensive Income attributable to Graybar Electric Company, Inc. | $ 55.2 | $ 18 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Condensed Consolidated Statements Of Comprehensive Income [Abstract] | ||
Pension and postretirement benefits liability adjustment (tax) | $ (2.3) | $ (1.9) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Current Assets | ||
Cash and cash equivalents | $ 138.8 | $ 131.2 |
Trade receivables (less allowances of $7.0 and $6.9, respectively) | 1,138.4 | 1,109 |
Merchandise inventory | 625.1 | 588.5 |
Other current assets | 57.5 | 56.6 |
Total Current Assets | 1,959.8 | 1,885.3 |
Property, at cost | ||
Land | 80 | 78.9 |
Buildings | 508.3 | 504.5 |
Furniture and fixtures | 256.1 | 255.7 |
Software | 154.6 | 153.5 |
Finance leases | 14.3 | 14.6 |
Total Property, at cost | 1,013.3 | 1,007.2 |
Accumulated depreciation and amortization | (607) | (600.6) |
Net Property | 406.3 | 406.6 |
Operating Lease Right-of-use Assets | 120.6 | 118.8 |
Other Non-current Assets | 141.5 | 140.5 |
Total Assets | 2,628.2 | 2,551.2 |
Current Liabilities | ||
Short-term borrowings | 50 | |
Current portion of long-term debt | 2.2 | 2.3 |
Trade accounts payable | 979.6 | 884.1 |
Accrued payroll and benefit costs | 99.7 | 121.7 |
Other accrued taxes | 44.8 | 44.2 |
Current operating lease liabilities | 31.6 | 31.2 |
Other current liabilities | 107.1 | 104.4 |
Total Current Liabilities | 1,265 | 1,237.9 |
Postretirement Benefits Liability | 74 | 74.1 |
Pension Liability | 192.2 | 197.9 |
Long-term Debt | 5.3 | 5.7 |
Non-current Operating Lease Liabilities | 97.2 | 95.9 |
Other Non-current Liabilities | 4.7 | 4.7 |
Total Liabilities | 1,638.4 | 1,616.2 |
SHAREHOLDERS’ EQUITY | ||
Outstanding Common Stock | 457.8 | 452.1 |
Advance Payments on Subscriptions to Common Stock | 1.1 | |
Retained Earnings | 765.4 | 725.1 |
Accumulated Other Comprehensive Loss | (238.7) | (246.7) |
Total Graybar Electric Company, Inc. Shareholders’ Equity | 985.6 | 930.5 |
Noncontrolling Interests | 4.2 | 4.5 |
Total Shareholders’ Equity | 989.8 | 935 |
Total Liabilities and Shareholders’ Equity | $ 2,628.2 | $ 2,551.2 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Condensed Consolidated Balance Sheets [Abstract] | ||
Allowance for doubtful accounts | $ 7 | $ 6.9 |
Common stock stated value per share | $ 20 | $ 20 |
Authorized | 50,000,000 | 50,000,000 |
Issued to voting trustees | 19,182,922 | 18,755,472 |
Issued to shareholders | 3,979,373 | 3,905,994 |
In treasury, at cost | (274,887) | (57,047) |
Outstanding Common Stock | 22,887,408 | 22,604,419 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash Flows from Operating Activities | ||
Net Income | $ 47.3 | $ 21.5 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 12.2 | 13.2 |
Non-cash operating lease expense | 8.5 | 8.2 |
Deferred income taxes | (4.4) | (1.1) |
Net income attributable to noncontrolling interests | (0.1) | (0.1) |
Changes in assets and liabilities: | ||
Trade receivables | (29.4) | (41.3) |
Merchandise inventory | (36.6) | 7.6 |
Other current assets | (0.9) | (4.5) |
Other non-current assets | (0.6) | (1.1) |
Trade accounts payable | 95.5 | 68.4 |
Accrued payroll and benefit costs | (22) | (49) |
Other current liabilities | 4.7 | (27.6) |
Other non-current liabilities | (5.5) | (6.6) |
Total adjustments to net income | 21.4 | (33.9) |
Net cash provided (used) by operating activities | 68.7 | (12.4) |
Cash Flows from Investing Activities | ||
Proceeds from disposal of property | 0.3 | |
Capital expenditures for property | (10) | (8.1) |
Acquisition of business, net of cash acquired | (0.1) | |
Net cash used by investing activities | (9.8) | (8.1) |
Cash Flows from Financing Activities | ||
Net (decrease) increase in short-term borrowings | (50) | 132 |
Principal payments under finance arrangements | (0.7) | (2.2) |
Sales of common stock | 11.1 | 10.5 |
Purchases of common stock | (4.3) | (4.2) |
Purchases of noncontrolling interests’ common stock | (0.5) | (0.1) |
Dividends paid | (6.9) | (6.9) |
Net cash (used) provided by financing activities | (51.3) | 129.1 |
Net Increase in Cash | 7.6 | 108.6 |
Cash, Beginning of Year | 131.2 | 60.8 |
Cash, End of Period | 138.8 | 169.4 |
Non-cash Investing and Financing Activities: | ||
Acquisitions of equipment under finance leases | 0.2 | 0.2 |
Acquisitions of assets under operating leases | $ 10.2 | $ 16 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements Of Changes in Shareholders’ Equity - USD ($) $ in Millions | Common Stock | Common Stock Subscribed, Unissued | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests | Total |
Balance at Dec. 31, 2019 | $ 449.5 | $ 694 | $ (250.6) | $ 4.9 | $ 897.8 | |
Net income | 21.4 | 0.1 | 21.5 | |||
Other comprehensive income (loss) | (3.4) | (0.3) | (3.7) | |||
Stock issued | 9.4 | 9.4 | ||||
Stock purchased | (4.2) | (0.1) | (4.3) | |||
Advance payments | $ 1.1 | 1.1 | ||||
Dividends declared | (6.9) | (6.9) | ||||
Balance at Mar. 31, 2020 | 454.7 | 1.1 | 708.5 | (254) | 4.6 | 914.9 |
Balance at Dec. 31, 2020 | 452.1 | 725.1 | (246.7) | 4.5 | 935 | |
Net income | 47.2 | 0.1 | 47.3 | |||
Other comprehensive income (loss) | 8 | 0.1 | 8.1 | |||
Stock issued | 10 | 10 | ||||
Stock purchased | (4.3) | (0.5) | (4.8) | |||
Advance payments | 1.1 | 1.1 | ||||
Dividends declared | (6.9) | (6.9) | ||||
Balance at Mar. 31, 2021 | $ 457.8 | $ 1.1 | $ 765.4 | $ (238.7) | $ 4.2 | $ 989.8 |
Description Of The Business
Description Of The Business | 3 Months Ended |
Mar. 31, 2021 | |
Description Of The Business [Abstract] | |
Description Of The Business | 1. 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, commercial, institutional and government ("CIG"), and industrial & utility 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, 2021 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | 2. 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 U.S. 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 as of and for the year ended December 31, 2020, 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 are in subsidiaries owned by the Company and 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. 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. Such service revenue represented less than 1 % of net sales for the three months ended March 31, 2021 and 2020. Revenue is reported net of all taxes, primarily sales tax, assessed by governmental authorities as a result of revenue-producing transactions. Outgoing Freight Expenses We record 95 % of 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 Credit Losses 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 pooled on the aging of the receivables, specific risks identified in the receivables portfolio based on current conditions, and expected future economic conditions when necessary. 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, comprised entirely of finished goods, is stated at the lower of cost (generally determined using the last-in, first-out (“LIFO”) cost method) or market. Inventories valued using the LIFO method comprised 89 % of the total inventories at March 31, 2021 and 91 % at March 31, 2020. 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 our performance under the agreements and the amounts that 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. 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 would then be quantitatively tested for impairment. If a quantitative assessment would be required, the fair value would be 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 Our income tax provision is recorded in accordance with a full-year forecasted rate methodology, including discrete items in the periods in which they occur. 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. 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 sheets. 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. Operating 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. For all other leases, we account for the lease and non-lease components 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. 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, amortization of prior service costs/gains, and charges due to settlement of certain plan liabilities. New Accounting Standards In March 2020, the FASB issued Accounting Standard Update (“ASU” or “Update”) 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” that provides temporary relief to the GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative rates. This Update is effective for all entities as of March 12, 2020 through December 31, 2022. The guidance on contract modifications, which is applicable to Graybar, can be applied prospectively from any date beginning March 12, 2020 and may also be applied to modifications of existing contracts made earlier in the interim period that includes March 12, 2020. We have evaluated the impact of the adoption of the Update on our contracts and our consolidated financial statements. We do not engage in hedging transactions and we anticipate that our few impacted contracts will continue to use LIBOR until at least December 31, 2021. As such, we currently believe this Update will not have a material impact on our contracts and our consolidated financial statements. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2021 | |
Revenue [Abstract] | |
Revenue | 3. 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, 2021 and 2020: Three Months Ended March 31, 2021 2020 Construction 58.5 % 57.8 % CIG 25.7 26.6 Industrial & Utility 15.8 15.6 Total net sales 100.0 % 100.0 % Certain reclassifications have been made to the vertical market assigned to customers in the prior year’s information to conform to the March 31, 2021 presentation. We had no material contract assets, contract liabilities, or deferred contract costs recorded on the condensed consolidated balance sheet as of March 31, 2021 and December 31, 2020. In addition, for the three months ended March 31, 2021 and 2020, 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, “Revenue from Contracts with Customers”, 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, 2021 | |
Income Taxes [Abstract] | |
Income Taxes | 4. INCOME TAXES Our total provision for income taxes was $ 16.2 million for the three months ended March 31, 2021. We record our income tax provision using a full-year forecasted methodology, including discrete items in the period in which they occur. Our year-to-date effective tax rate for the three months ended March 31, 2021 was 25.5 %. Our unrecognized tax benefits of $ 1.7 million at both March 31, 2021 and December 31, 2020, 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 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 $ 0.4 million and $ 0.3 million in interest and penalties at March 31, 2021 and December 31, 2020, 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. In response to the COVID-19 pandemic, the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) was signed into law on March 27, 2020. The CARES Act, among other things, includes tax provisions relating to refundable payroll tax credits, deferment of employer social security payments, net operating loss utilization and carryback periods, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property (“QIP”). On December 27, 2020, the Taxpayer Certainty and Disaster Tax Relief Act of 2020 was enacted as part of the Consolidated Appropriations Act, 2021, followed by the American Rescue Plan Act on March 1, 2021. These recent laws, among many other provisions, expand and extend the refundable employee retention tax credits previously made available under the CARES Act and allow a full deduction for business meals for the 2021 and 2022 tax years. At this point we do not believe that these changes will have a material impact on our income tax provision for 2021. We will continue to evaluate the impact of new legislation on our financial position, results of operations, and cash flows. Our federal income tax returns for the tax years 2017 and forward are available for examination by the U.S. Internal Revenue Service (“IRS”). The statute of limitations for the 2017 federal return will expire on October 15, 2021. Our state income tax returns for 2016 through 2020 remain subject to examination by various state authorities with the latest period closing on December 31, 2025. We have not extended the statutes of limitations in any state jurisdictions with respect to years prior to 2016. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt [Abstract] | |
Debt | 5. DEBT Revolving Credit Facility At March 31, 2021 and December 31, 2020, we, along with Graybar Canada Limited, our Canadian operating subsidiary ("Graybar Canada"), had an unsecured, five-year , $ 750.0 million committed revolving credit agreement maturing in August 2023 with Bank of America, N.A. and the other lenders named therein (the "Amended 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 Amended Credit Agreement includes a $ 100.0 million sublimit (in U.S. or Canadian dollars) for borrowings by Graybar Canada. The Amended 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 Amended Credit Agreement as of March 31, 2021 and December 31, 2020. There were no short-term borrowings under the Amended Credit Agreement at March 31, 2021, compared to $ 50.0 million of short-term borrowings at December 31, 2020. Short-term borrowings outstanding during the three months ended March 31, 2021 ranged from a minimum of $ 0.0 million to a maximum of $ 50.0 million. Short-term borrowings outstanding during the three months ended March 31, 2020 ranged from a minimum of $ 55.0 million to a maximum of $ 270.0 million. At March 31, 2021, we had unused lines of credit under the Amended Credit Agreement amounting to $ 749.6 million available, compared to $ 699.6 million at December 31, 2020. 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 $ 0.2 million and $ 0.9 million for the three months ended March 31, 2021 and 2020, respectively. Private Placement Shelf Agreements We have an uncommitted, unsecured $ 100.0 million private placement shelf agreement (the “Prudential Shelf Agreement”) with PGIM, Inc., 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 2023. We also have an uncommitted, unsecured $ 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 Amended Credit Agreement. No notes have been issued under either the Prudential Shelf Agreement or the MetLife Shelf Agreement as of March 31, 2021 and December 31, 2020. 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 Amended Credit Agreement, subject to a number of 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, 2021 and December 31, 2020. Letters of Credit We had total letters of credit of $ 6.3 million outstanding at both March 31, 2021 and December 31, 2020, of which $ 0.4 million were issued under the Amended Credit Agreement. The letters of credit are issued primarily to support certain workers' compensation insurance policies. |
Pension And Other Postretiremen
Pension And Other Postretirement Benefits | 3 Months Ended |
Mar. 31, 2021 | |
Pension And Other Postretirement Benefits [Abstract] | |
Pension And Other Postretirement Benefits | 6. 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 final 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 the Employee Retirement Income Security Act of 1974 (“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, 2021 and December 31, 2020. The net periodic benefit cost for the three months ended March 31, 2021 and 2020 includes the following components: Pension Benefits Postretirement Benefits Three Months Ended Three Months Ended March 31, March 31, Components of Net Periodic Benefit Cost 2021 2020 2021 2020 Selling, general and administrative expenses: Service cost $ 7.6 $ 7.2 $ 0.6 $ 0.5 Total selling, general and administrative expenses $ 7.6 $ 7.2 $ 0.6 $ 0.5 Non-operating expenses: Interest cost $ 6.1 $ 7.0 $ 0.4 $ 0.6 Expected return on plan assets ( 7.8 ) ( 8.4 ) — — Amortization of: Net actuarial loss 8.6 7.2 0.3 0.2 Total non-operating expenses $ 6.9 $ 5.8 $ 0.7 $ 0.8 Net periodic benefit cost $ 14.5 $ 13.0 $ 1.3 $ 1.3 We made qualified and nonqualified pension contributions totaling $ 11.6 million during the three-month period ended March 31, 2021 and contributions totaling $ 11.8 million during the three-month period ended March 31, 2020. Additional contributions of $ 30.0 million are expected to be paid during the remainder of 2021, but may change at our discretion. |
Capital Stock
Capital Stock | 3 Months Ended |
Mar. 31, 2021 | |
Capital Stock [Abstract] | |
Capital Stock | 7. 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 because under applicable New York law, a voting trust may not have a term greater than ten years. At March 31, 2021, approximately 83 % of our outstanding 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 $ 6.9 million for the three months ended March 31, 2021 and 2020. 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, 2021 and December 31, 2020. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2021 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | 8. ACCUMULATED OTHER COMPREHENSIVE LOSS The following table represents amounts reclassified from accumulated other comprehensive loss for the three months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 Amortization of Pension and Other Postretirement Benefits Items Amortization of Pension and Other Postretirement Benefits Items Actuarial Losses Recognized Actuarial Losses Recognized Affected Line in Condensed Consolidated Statement of Income: Non-operating expenses $ 8.9 $ 7.4 Tax benefit ( 2.3 ) ( 1.9 ) Total reclassifications for the period, net of tax $ 6.6 $ 5.5 The following table represents the activity included in accumulated other comprehensive loss for the three months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 Foreign Currency Pension and Other Postretirement Benefits Total Foreign Currency Pension and Other Postretirement Benefits Total Beginning balance January 1, $ ( 5.1 ) $ ( 241.6 ) $ ( 246.7 ) $ ( 7.7 ) $ ( 242.9 ) $ ( 250.6 ) Other comprehensive income (loss) before reclassifications 1.4 — 1.4 ( 8.9 ) — ( 8.9 ) Amounts reclassified from accumulated other comprehensive income (net of tax $( 2.3 ) and $( 1.9 )) — 6.6 6.6 — 5.5 5.5 Net current-period other comprehensive income (loss) 1.4 6.6 8.0 ( 8.9 ) 5.5 ( 3.4 ) Ending balance March 31, $ ( 3.7 ) $ ( 235.0 ) $ ( 238.7 ) $ ( 16.6 ) $ ( 237.4 ) $ ( 254.0 ) |
Commitments And Contingencies
Commitments And Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | 9. COMMITMENTS AND CONTINGENCIES We 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 (Policy) | 3 Months Ended |
Mar. 31, 2021 | |
Summary Of Significant 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 U.S. 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 as of and for the year ended December 31, 2020, 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 are in subsidiaries owned by the Company and 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. |
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. Such service revenue represented less than 1 % of net sales for the three months ended March 31, 2021 and 2020. Revenue is reported net of all taxes, primarily sales tax, assessed by governmental authorities as a result of revenue-producing transactions. |
Outgoing Freight Expenses | Outgoing Freight Expenses We record 95 % of 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 Credit Losses | Allowance for Credit Losses 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 pooled on the aging of the receivables, specific risks identified in the receivables portfolio based on current conditions, and expected future economic conditions when necessary. 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, comprised entirely of finished goods, is stated at the lower of cost (generally determined using the last-in, first-out (“LIFO”) cost method) or market. Inventories valued using the LIFO method comprised 89 % of the total inventories at March 31, 2021 and 91 % at March 31, 2020. 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 our performance under the agreements and the amounts that 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. |
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 would then be quantitatively tested for impairment. If a quantitative assessment would be required, the fair value would be 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 Our income tax provision is recorded in accordance with a full-year forecasted rate methodology, including discrete items in the periods in which they occur. 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. |
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 sheets. 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. Operating 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. For all other leases, we account for the lease and non-lease components 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. |
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, amortization of prior service costs/gains, and charges due to settlement of certain plan liabilities. |
New Accounting Standards | New Accounting Standards In March 2020, the FASB issued Accounting Standard Update (“ASU” or “Update”) 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” that provides temporary relief to the GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative rates. This Update is effective for all entities as of March 12, 2020 through December 31, 2022. The guidance on contract modifications, which is applicable to Graybar, can be applied prospectively from any date beginning March 12, 2020 and may also be applied to modifications of existing contracts made earlier in the interim period that includes March 12, 2020. We have evaluated the impact of the adoption of the Update on our contracts and our consolidated financial statements. We do not engage in hedging transactions and we anticipate that our few impacted contracts will continue to use LIBOR until at least December 31, 2021. As such, we currently believe this Update will not have a material impact on our contracts and our consolidated financial statements. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue [Abstract] | |
Disaggregation of Revenue | Three Months Ended March 31, 2021 2020 Construction 58.5 % 57.8 % CIG 25.7 26.6 Industrial & Utility 15.8 15.6 Total net sales 100.0 % 100.0 % |
Pension And Other Postretirem_2
Pension And Other Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Pension And Other Postretirement Benefits [Abstract] | |
Schedule Of Net Periodic Benefit Costs | Pension Benefits Postretirement Benefits Three Months Ended Three Months Ended March 31, March 31, Components of Net Periodic Benefit Cost 2021 2020 2021 2020 Selling, general and administrative expenses: Service cost $ 7.6 $ 7.2 $ 0.6 $ 0.5 Total selling, general and administrative expenses $ 7.6 $ 7.2 $ 0.6 $ 0.5 Non-operating expenses: Interest cost $ 6.1 $ 7.0 $ 0.4 $ 0.6 Expected return on plan assets ( 7.8 ) ( 8.4 ) — — Amortization of: Net actuarial loss 8.6 7.2 0.3 0.2 Total non-operating expenses $ 6.9 $ 5.8 $ 0.7 $ 0.8 Net periodic benefit cost $ 14.5 $ 13.0 $ 1.3 $ 1.3 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Reclassification Out Of Accumulated Other Comprehensive Income (Loss) | The following table represents amounts reclassified from accumulated other comprehensive loss for the three months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 Amortization of Pension and Other Postretirement Benefits Items Amortization of Pension and Other Postretirement Benefits Items Actuarial Losses Recognized Actuarial Losses Recognized Affected Line in Condensed Consolidated Statement of Income: Non-operating expenses $ 8.9 $ 7.4 Tax benefit ( 2.3 ) ( 1.9 ) Total reclassifications for the period, net of tax $ 6.6 $ 5.5 |
Changes In Accumlated Other Comprehensive Income (Loss) | The following table represents the activity included in accumulated other comprehensive loss for the three months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 Foreign Currency Pension and Other Postretirement Benefits Total Foreign Currency Pension and Other Postretirement Benefits Total Beginning balance January 1, $ ( 5.1 ) $ ( 241.6 ) $ ( 246.7 ) $ ( 7.7 ) $ ( 242.9 ) $ ( 250.6 ) Other comprehensive income (loss) before reclassifications 1.4 — 1.4 ( 8.9 ) — ( 8.9 ) Amounts reclassified from accumulated other comprehensive income (net of tax $( 2.3 ) and $( 1.9 )) — 6.6 6.6 — 5.5 5.5 Net current-period other comprehensive income (loss) 1.4 6.6 8.0 ( 8.9 ) 5.5 ( 3.4 ) Ending balance March 31, $ ( 3.7 ) $ ( 235.0 ) $ ( 238.7 ) $ ( 16.6 ) $ ( 237.4 ) $ ( 254.0 ) |
Summary Of Significant Accoun_3
Summary Of Significant Accounting Policies (Narrative) (Details) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Minimum | ||
Concentration Risk [Line Items] | ||
Amortization period | 3 years | |
Maximum | ||
Concentration Risk [Line Items] | ||
Amortization period | 20 years | |
Sales revenue | Professional Services, General Contracting Services, And Storage Services | Maximum | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 1.00% | 1.00% |
Freight Expenses As Selling, General And Administrative Expenses | Outgoing Freight Expenses | Professional Services, General Contracting Services, And Storage Services | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 95.00% | |
Inventories Using LIFO Method | Professional Services, General Contracting Services, And Storage Services | Finished Goods [Member] | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 89.00% | 91.00% |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Revenue [Abstract] | ||
Contract assets, contract liabilities, or deferred contract costs recorded | $ 0 | $ 0 |
Revenue (Disaggregation Of Reve
Revenue (Disaggregation Of Revenue) (Details) - Product Concentration Risk [Member] - Revenue from Contract with Customer [Member] | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Total net sales | 100.00% | 100.00% |
Construction | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 58.50% | 57.80% |
CIG | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 25.70% | 26.60% |
Industrial & Utility | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 15.80% | 15.60% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Income Taxes [Abstract] | |||
Total income tax provision | $ 16.2 | $ 8.7 | |
Effective tax rate | 25.50% | ||
Unrecognized tax benefits | $ 1.7 | $ 1.7 | |
Accrued interest and penalties | $ 0.4 | $ 0.3 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | Aug. 10, 2018 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 |
Line of Credit Facility [Line Items] | ||||
Remaining borrowing capacity | $ 749,600,000 | $ 699,600,000 | ||
Credit agreement commitment fee percentage | 0.40% | |||
Short-term borrowings | 50,000,000 | |||
Interest expense, net | $ 200,000 | $ 900,000 | ||
Notes issued face amount | 0 | |||
Letters of credit outstanding | 6,300,000 | 6,300,000 | ||
Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Short-term borrowings | 0 | 55,000,000 | ||
Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Short-term borrowings | 50,000,000 | $ 270,000,000 | ||
Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Short-term borrowings | 0 | 50,000,000 | ||
Amended Credit Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Letters of credit outstanding | $ 400,000 | $ 400,000 | ||
Prudential Private Placement Shelf Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Agreement face amount | $ 100,000,000 | |||
Issuance period | 3 years | |||
MetLife Private Placement Shelf Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Agreement face amount | $ 100,000,000 | |||
Issuance period | 3 years | |||
Line of credit | Amended Credit Agreement | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 750,000,000 | |||
Accordian feature, increase limit | $ 375,000,000 | |||
Expiration date | Aug. 10, 2023 | |||
Debt instrument, term | 5 years | |||
Line of credit | Amended Credit Agreement | Letter of Credit Sub-Facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 25,000,000 | |||
Line of credit | Amended Credit Agreement | Bridge Loan | Graybar Canada | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 100,000,000 | |||
Line of credit | Amended Credit Agreement | Bridge Loan | UNITED STATES | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 75,000,000 | |||
Line of credit | Amended Credit Agreement | Bridge Loan | CANADA | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 20,000,000 |
Pension And Other Postretirem_3
Pension And Other Postretirement Benefits (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Pension And Other Postretirement Benefits [Abstract] | |||
Vesting percentage | 100.00% | ||
Required term of service to be eligible for plan match | one year of service and 1,000 hours of service | ||
Award vesting period | 3 years | ||
Employer contributions | $ 11,600,000 | $ 11,800,000 | |
Assets held in postretirement benefits plan | 0 | $ 0 | |
Expected employer contributions remainder of year | $ 30,000,000 |
Pension And Other Postretirem_4
Pension And Other Postretirement Benefits (Schedule Of Net Periodic Benefit Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Total selling, general, and administrative expenses | $ 277.9 | $ 290.1 |
Total non-operating expenses | 7.8 | 7.5 |
Pension Benefits | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Service cost | 7.6 | 7.2 |
Total selling, general, and administrative expenses | 7.6 | 7.2 |
Interest cost | 6.1 | 7 |
Expected return on plan assets | (7.8) | (8.4) |
Net actuarial loss | 8.6 | 7.2 |
Total non-operating expenses | 6.9 | 5.8 |
Net periodic benefit cost | 14.5 | 13 |
Postretirement Benefits | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Service cost | 0.6 | 0.5 |
Total selling, general, and administrative expenses | 0.6 | 0.5 |
Interest cost | 0.4 | 0.6 |
Net actuarial loss | 0.3 | 0.2 |
Total non-operating expenses | 0.7 | 0.8 |
Net periodic benefit cost | $ 1.3 | $ 1.3 |
Capital Stock (Narrative) (Deta
Capital Stock (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Capital Stock [Abstract] | |||
Percent of stock owned by active and retired employees | 100.00% | ||
Percent of shares held in voting trust | 83.00% | ||
Common stock stated value per share | $ 20 | $ 20 | |
Cash dvidends | $ 6.9 | $ 6.9 | |
Preferred stock shares authorized | 10,000,000 | ||
Preferred stock par or stated value per share (USD per share) | $ 0.01 | ||
Preferred stock outstanding (in shares) | 0 | 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Reclassification Out Of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Non-operating expenses | $ 7.8 | $ 7.5 |
Tax benefit | 16.2 | 8.7 |
Total reclassifications for the period, net of tax | (47.3) | (21.5) |
Reclassification out of AOCI | Actuarial Losses Recognized | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Non-operating expenses | 8.9 | 7.4 |
Tax benefit | (2.3) | (1.9) |
Total reclassifications for the period, net of tax | $ 6.6 | $ 5.5 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (Changes In Accumlated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | $ 930.5 | ||
Retained Earnings | 765.4 | $ 725.1 | |
Ending balance | 985.6 | ||
Amounts reclassified from accumulated other comprehensive loss, tax | (2.3) | $ (1.9) | |
Foreign Currency | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (5.1) | (7.7) | |
Other comprehensive income before reclassifications | 1.4 | (8.9) | |
Amounts reclassified from accumulated other comprehensive loss (net of tax $(2.3) and $(1.9)) | |||
Net current-period other comprehensive income (loss) | 1.4 | (8.9) | |
Ending balance | (3.7) | (16.6) | |
Pension and Other Postretirement Benefits | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (241.6) | (242.9) | |
Other comprehensive income before reclassifications | |||
Amounts reclassified from accumulated other comprehensive loss (net of tax $(2.3) and $(1.9)) | 6.6 | 5.5 | |
Net current-period other comprehensive income (loss) | 6.6 | 5.5 | |
Ending balance | (235) | (237.4) | |
Accumulated Other Comprehensive Loss | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (246.7) | (250.6) | |
Other comprehensive income before reclassifications | 1.4 | (8.9) | |
Amounts reclassified from accumulated other comprehensive loss (net of tax $(2.3) and $(1.9)) | 6.6 | 5.5 | |
Net current-period other comprehensive income (loss) | 8 | (3.4) | |
Ending balance | $ (238.7) | $ (254) |