Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2015 | Aug. 03, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Amendment Flag | false | |
Entity Registrant Name | AIRGAS INC | |
Trading Symbol | ARG | |
Entity Central Index Key | 804,212 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Entity Common Stock, Shares Outstanding | 74,654,017 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Net Sales | $ 1,349,710 | $ 1,313,587 |
Costs and Expenses: | ||
Cost of products sold (excluding depreciation) | 597,166 | 583,406 |
Selling, distribution and administrative expenses | 513,776 | 494,713 |
Depreciation | 78,075 | 72,635 |
Amortization | 8,115 | 7,752 |
Total costs and expenses | 1,197,132 | 1,158,506 |
Operating Income | 152,578 | 155,081 |
Interest expense, net | (14,036) | (16,139) |
Other income, net | 1,425 | 1,869 |
Earnings before income taxes | 139,967 | 140,811 |
Income taxes | (51,732) | (51,959) |
Net Earnings | $ 88,235 | $ 88,852 |
Net Earnings per Common Share: | ||
Basic earnings per share | $ 1.17 | $ 1.20 |
Diluted earnings per share | $ 1.16 | $ 1.18 |
Weighted Average Shares Outstanding: | ||
Basic | 75,206 | 74,272 |
Diluted | 76,105 | 75,483 |
Dividends Declared per Common Share | $ 0.60 | $ 0.55 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Net earnings | $ 88,235 | $ 88,852 |
Other comprehensive income (loss), before tax: | ||
Foreign currency translation adjustments | 1,810 | 2,575 |
Reclassification of hedging loss included in net earnings | 129 | 129 |
Other comprehensive income (loss), before tax | 1,939 | 2,704 |
Net tax expense of other comprehensive income items | (48) | (48) |
Other comprehensive income (loss), net of tax | 1,891 | 2,656 |
Comprehensive income | $ 90,126 | $ 91,508 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 |
Current Assets | ||
Cash | $ 72,208 | $ 50,724 |
Trade receivables, less allowances for doubtful accounts of $29,149 and $27,016 at June 30, 2015 and March 31, 2015, respectively | 718,856 | 708,227 |
Inventories, net | 460,842 | 474,070 |
Deferred income tax asset, net | 58,290 | 58,072 |
Prepaid expenses and other current assets | 93,131 | 124,591 |
Total current assets | 1,403,327 | 1,415,684 |
Plant and equipment at cost | 5,448,032 | 5,305,059 |
Less accumulated depreciation | (2,421,694) | (2,353,293) |
Plant and equipment, net | 3,026,338 | 2,951,766 |
Goodwill | 1,328,551 | 1,313,644 |
Other intangible assets, net | 248,765 | 244,519 |
Other non-current assets | 47,796 | 47,997 |
Total assets | 6,054,777 | 5,973,610 |
Current Liabilities | ||
Accounts payable, trade | 188,330 | 206,187 |
Accrued expenses and other current liabilities | 363,758 | 346,879 |
Short-term debt | 415,964 | 325,871 |
Current portion of long-term debt | 500,063 | 250,110 |
Total current liabilities | 1,468,115 | 1,129,047 |
Long-term debt, excluding current portion | 1,525,442 | 1,748,662 |
Deferred income tax liability, net | 849,477 | 854,574 |
Other non-current liabilities | $ 89,655 | $ 89,741 |
Commitments and contingencies | ||
Stockholders’ Equity | ||
Preferred stock, 20,030 shares authorized, no shares issued or outstanding at June 30, 2015 and March 31, 2015 | $ 0 | $ 0 |
Common stock, par value $0.01 per share, 200,000 shares authorized, 87,608 and 87,554 shares issued at June 30, 2015 and March 31, 2015, respectively | 876 | 876 |
Capital in excess of par value | 876,177 | 853,800 |
Retained earnings | 2,268,395 | 2,231,026 |
Accumulated other comprehensive income (loss) | (12,962) | (14,853) |
Treasury stock, 13,034 and 12,197 shares at cost at June 30, 2015 and March 31, 2015, respectively | (1,010,398) | (919,263) |
Total stockholders’ equity | 2,122,088 | 2,151,586 |
Total liabilities and stockholders’ equity | $ 6,054,777 | $ 5,973,610 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 |
Allowance for doubtful accounts | $ 29,149 | $ 27,016 |
Preferred stock, shares authorized | 20,030 | 20,030 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000 | 200,000 |
Common stock, shares issued | 87,608 | 87,554 |
Treasury stock, shares | 13,034 | 12,197 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net earnings | $ 88,235 | $ 88,852 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation | 78,075 | 72,635 |
Amortization | 8,115 | 7,752 |
Deferred income taxes | (5,828) | (4,554) |
Gain on sales of plant and equipment | (1,731) | (959) |
Stock-based compensation expense | 13,650 | 14,830 |
Changes in assets and liabilities, excluding effects of business acquisitions: | ||
Trade receivables, net | (9,151) | (9,104) |
Inventories, net | 15,064 | 347 |
Prepaid expenses and other current assets | 32,548 | 1,163 |
Accounts payable, trade | (18,130) | (7,473) |
Accrued expenses and other current liabilities | 23,211 | 31,567 |
Other, net | (315) | 1,916 |
Net cash provided by operating activities | 223,743 | 196,972 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Capital expenditures | (155,719) | (108,580) |
Proceeds from sales of plant and equipment | 5,153 | 5,452 |
Business acquisitions and holdback settlements | (26,182) | (23,463) |
Other, net | 917 | (1,113) |
Net cash used in investing activities | (175,831) | (127,704) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net increase (decrease) in short-term debt | 89,818 | (335,015) |
Proceeds from borrowings of long-term debt | 28,939 | 300,528 |
Repayment of long-term debt | (4,579) | (553) |
Financing costs | (29) | (2,133) |
Purchase of treasury stock | (103,839) | 0 |
Proceeds from the exercise of stock options | 6,977 | 11,578 |
Stock issued for the Employee Stock Purchase Plan | 4,836 | 4,602 |
Excess tax benefit realized from the exercise of stock options | 3,891 | 4,063 |
Dividends paid to stockholders | (44,873) | (40,914) |
Change in cash overdraft | (7,569) | (3,673) |
Net cash used in financing activities | (26,428) | (61,517) |
Change in cash | 21,484 | 7,751 |
Cash – Beginning of period | 50,724 | 69,561 |
Cash – End of period | $ 72,208 | $ 77,312 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation [Text Block] | BASIS OF PRESENTATION The consolidated financial statements include the accounts of Airgas, Inc. and its subsidiaries (“Airgas” or the “Company”). Intercompany accounts and transactions are eliminated in consolidation. The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). These consolidated financial statements do not include all disclosures required for annual financial statements. These consolidated financial statements should be read in conjunction with the complete disclosures contained in the Company’s audited consolidated financial statements for the fiscal year ended March 31, 2015 . The preparation of financial statements in accordance with GAAP requires the use of estimates. The consolidated financial statements reflect, in the opinion of management, reasonable estimates and all adjustments necessary to present fairly the Company’s results of operations, financial position and cash flows for the periods presented. The interim operating results are not necessarily indicative of the results to be expected for the entire year. |
Accounting and Disclosure Chang
Accounting and Disclosure Changes | 3 Months Ended |
Jun. 30, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Accounting and Disclosure Changes [Text Block] | ACCOUNTING AND DISCLOSURE CHANGES Recently Adopted Accounting Pronouncements In April 2014, the Financial Accounting Standards Board ( “ FASB ” ) issued new guidance on the reporting of discontinued operations. The new guidance limits the presentation of discontinued operations to disposals that represent a strategic shift with a major effect on an entity’s operations and financial results. In contrast, many disposals under previous standards, which may have been more routine in nature and not changed an entity’s strategy, were reported in discontinued operations. The new guidance also requires disclosures around both disposals qualifying for discontinued operations as well as significant disposals that are not considered discontinued operations. The Company adopted the new guidance effective April 1, 2015. The guidance did not have an impact on the Company’s consolidated financial statements and related disclosures upon adoption. The Company will prospectively apply the provisions of the new guidance to applicable disposal transactions. Accounting Pronouncements Not Yet Adopted In May 2014, the FASB issued new guidance on the accounting for revenue from contracts with customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The new guidance will replace most existing GAAP revenue recognition guidance when it becomes effective. In July 2015, the FASB voted to defer the effective date by one year to December 15, 2017 for annual reporting periods beginning after that date and permitted early adoption of the standard, but not before the original effective date of December 15, 2016. With the deferral, the new standard would be effective for the Company for annual and interim reporting periods beginning on April 1, 2018, with early adoption permitted one year prior. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that the new guidance will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. In February 2015, the FASB issued new guidance changing the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. The new guidance changes the way reporting enterprises evaluate whether (a) they should consolidate limited partnerships and similar entities, (b) fees paid to a decision maker or service provider are variable interests in a variable interest entity (“VIE”), and (c) variable interests in a VIE held by related parties of the reporting enterprise require the reporting enterprise to consolidate the VIE. The new guidance is effective for the Company on April 1, 2016, with early adoption permitted, including early adoption in an interim period. The new guidance may be applied using either a modified retrospective approach or on a full retrospective basis. The Company does not expect this adoption to have a material impact on its consolidated financial statements. In April 2015, the FASB issued new guidance simplifying the financial statement presentation of debt issuance costs. The new guidance specifies that debt issuance costs related to a recognized debt liability shall be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The existing recognition and measurement guidance for debt issuance costs is not affected by the new guidance. The new guidance is effective for the Company on April 1, 2016, with early adoption permitted, for financial statements that have not been previously issued. The new guidance must be applied on a retrospective basis. The Company does not expect this adoption to have a material impact on its consolidated financial statements. In April 2015, the FASB issued new guidance on customer’s accounting for fees paid in a cloud computing arrangement. The amendments to existing GAAP provide guidance to customers about whether a cloud computing arrangement includes a software license. The new guidance clarifies that if a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If the arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new guidance is effective for the Company on April 1, 2016, with early adoption permitted. The new guidance may be applied either prospectively to all arrangements entered into or materially modified after the effective date or on a retrospective basis. The Company does not expect this adoption to have a material impact on its consolidated financial statements. In July 2015, the FASB issued new guidance that changes the measurement principle for inventory from the lower of cost or market to the lower of cost or net realizable value. The amendments in this guidance do not apply to inventory that is measured using last-in, first-out (“LIFO”) or the retail inventory method; rather, the amendments apply to all other inventory, which includes inventory that is measured using first-in, first-out (“FIFO”) or average cost. Within the scope of this new guidance, an entity should measure inventory at the lower of cost or net realizable value. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation, which is consistent with existing GAAP. The new guidance is effective for the Company on April 1, 2017 on a prospective basis, with early adoption permitted. The Company is evaluating the effect that the new guidance will have on its consolidated financial statements and related disclosures. |
Acquisitions
Acquisitions | 3 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisitions [Text Block] | ACQUISITIONS Acquisitions are recorded using the acquisition method of accounting and accordingly, results of their operations are included in the Company’s consolidated financial statements from the effective date of each respective acquisition. The Company negotiates the respective purchase prices of acquired businesses based on the expected cash flows to be derived from their operations after integration into the Company’s existing distribution, production and service networks. The acquisition purchase price for each business is allocated based on the fair values of the assets acquired and liabilities assumed. Management estimates the fair values of acquired intangible assets other than goodwill using the income approach (i.e. discounted cash flows), and plant and equipment using either the cost or market approach, depending on the type of fixed asset. During the three months ended June 30, 2015 , the Company acquired five businesses with aggregate historical annual sales of approximately $33 million , all of which were in the Distribution business segment. Transaction and other integration costs incurred during the three months ended June 30, 2015 were $1.2 million and were included in selling, distribution and administrative expenses in the Company’s consolidated statement of earnings. These acquisitions contributed approximately $4 million in net sales during the three months ended June 30, 2015 . Purchase price allocations for certain businesses most recently acquired during the three months ended June 30, 2015 are primarily based on provisional fair values and are subject to revision as the Company finalizes appraisals and other analyses. Final determination of the fair values may result in further adjustments to the values presented below. The following table summarizes the consideration transferred and the estimated fair values of the assets acquired and liabilities assumed for fiscal 2016 acquisitions, as well as adjustments to finalize the valuations of certain prior year acquisitions. Valuation adjustments related to prior year acquisitions were not significant. (In thousands) Consideration Cash (a) $ 26,182 Recognized amounts of identifiable assets acquired and liabilities assumed Current assets, net $ 4,409 Plant and equipment 3,523 Other intangible assets 11,840 Current liabilities (4,255 ) Non-current liabilities (1,219 ) Total identifiable net assets 14,298 Goodwill 11,884 $ 26,182 ____________________ (a) Includes cash paid, net of cash acquired, for current year acquisitions as well as payments for the settlement of holdback liabilities associated with prior year acquisitions. The fair value of trade receivables acquired with fiscal 2016 acquisitions was $1.5 million , with gross contractual amounts receivable of $1.7 million . Goodwill associated with fiscal 2016 acquisitions was $11.8 million , of which $7.4 million is deductible for income tax purposes. Goodwill largely consists of expected synergies resulting from the acquisitions, including increased distribution density that will facilitate the sale of industrial, medical and specialty gases, and related supplies, and enhanced geographical coverage abroad to strengthen the Company’s welder and generator rental business. Other intangible assets related to fiscal 2016 acquisitions represent customer relationships and non-competition agreements, and amounted to $7.6 million and $4.3 million , respectively. See Note 5 for further information on goodwill and other intangible assets. Pro forma results of operations have not been presented for these acquisitions since the impact is not material to the Company’s consolidated statements of earnings, either individually or in the aggregate. |
Inventories, Net
Inventories, Net | 3 Months Ended |
Jun. 30, 2015 | |
Inventory, Net [Abstract] | |
Inventories, Net [Text Block] | INVENTORIES, NET Inventories, net, consist of: (In thousands) June 30, 2015 March 31, 2015 Hardgoods $ 311,920 $ 311,453 Gases 148,922 162,617 $ 460,842 $ 474,070 |
Goodwill And Other Intangible A
Goodwill And Other Intangible Assets | 3 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Other Intangible Assets [Text Block] | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. The valuations of assets acquired and liabilities assumed from certain recent acquisitions are based on preliminary estimates of fair value and are subject to revision as the Company finalizes appraisals and other analyses. Changes in the carrying amount of goodwill by business segment for the three months ended June 30, 2015 were as follows: (In thousands) Distribution Business Segment All Other Operations Business Segment Total Balance at March 31, 2015 $ 1,116,569 $ 197,075 $ 1,313,644 Acquisitions (a) 11,884 — 11,884 Other adjustments, including foreign currency translation 3,007 16 3,023 Balance at June 30, 2015 $ 1,131,460 $ 197,091 $ 1,328,551 ____________________ (a) Includes acquisitions completed during the current year and adjustments made to prior year acquisitions. Other Intangible Assets Other intangible assets by major class are as follows: June 30, 2015 March 31, 2015 (In thousands) Weighted Average Amortization Period (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Amortization Period (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships 17 $ 353,575 $ (126,243 ) $ 227,332 17 $ 345,805 $ (120,321 ) $ 225,484 Non-competition agreements 6 47,029 (25,758 ) 21,271 6 43,204 (24,335 ) 18,869 Other 200 (38 ) 162 200 (34 ) 166 $ 400,804 $ (152,039 ) $ 248,765 $ 389,209 $ (144,690 ) $ 244,519 As the Company’s other intangible assets amortize and reach the end of their respective amortization periods, the fully amortized balances are removed from the gross carrying and accumulated amortization amounts. Amortization expense related to the Company’s other intangible assets for the three months ended June 30, 2015 and 2014 was $7.6 million and $7.4 million , respectively. Estimated future amortization expense for the Company’s other intangible assets by fiscal year is as follows: remainder of fiscal 2016 - $22.9 million ; 2017 - $28.7 million ; 2018 - $26.4 million ; 2019 - $24.3 million ; 2020 - $22.8 million ; and $123.7 million thereafter. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Jun. 30, 2015 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Accrued Expenses and Other Current Liabilities [Text Block] | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities include: (In thousands) June 30, 2015 March 31, 2015 Accrued payroll and employee benefits $ 80,642 $ 98,547 Business insurance reserves (a) 50,028 49,934 Income taxes (b) 33,351 — Taxes other than income taxes 26,356 22,863 Cash overdraft 63,968 71,537 Deferred rental revenue 33,602 34,538 Accrued interest 13,096 12,860 Other accrued expenses and current liabilities 62,715 56,600 $ 363,758 $ 346,879 ____________________ (a) With respect to the business insurance reserves above, the Company had corresponding insurance receivables of $11.6 million at both June 30, 2015 and March 31, 2015 , which are included within the “Prepaid expenses and other current assets” line item on the Company’s consolidated balance sheets. The insurance receivables represent the balance of probable claim losses in excess of the Company’s deductible for which the Company is fully insured. (b) At March 31, 2015 , the Company was in an income tax refund position which was reflected as a current asset, based on the timing of income tax payments. |
Indebtedness
Indebtedness | 3 Months Ended |
Jun. 30, 2015 | |
Debt Instruments [Abstract] | |
Indebtedness [Text Block] | INDEBTEDNESS Total debt consists of: (In thousands) June 30, 2015 March 31, 2015 Short-term Money market loans $ — $ — Commercial paper 415,964 325,871 Short-term debt $ 415,964 $ 325,871 Long-term Trade receivables securitization $ 295,000 $ 295,000 Revolving credit borrowings - U.S. — — Revolving credit borrowings - Multi-currency 74,794 48,332 Revolving credit borrowings - France 6,521 6,277 Senior notes, net 1,648,704 1,648,608 Other long-term debt 486 555 Total long-term debt 2,025,505 1,998,772 Less current portion of long-term debt (500,063 ) (250,110 ) Long-term debt, excluding current portion $ 1,525,442 $ 1,748,662 Total debt $ 2,441,469 $ 2,324,643 Money Market Loans In July 2015 , the Company extended an agreement with a financial institution that provides access to short-term advances not to exceed $35 million . The agreement now expires on July 31, 2016 , and may be further extended subject to renewal provisions contained in the agreement. The advances are generally overnight or for up to seven days. The amount, term and interest rate of an advance are established through mutual agreement with the financial institution when the Company requests such an advance . Senior Credit Facility The Company participates in a $1 billion Second Amended and Restated Credit Facility (the “Credit Facility”). As of June 30, 2015 , the Company had $75 million of borrowings under the Credit Facility, all of which were under the multi-currency revolver. There were no borrowings under the U.S. dollar revolver at June 30, 2015 . The Company also had outstanding U.S. letters of credit of $51 million issued under the Credit Facility. At June 30, 2015 , the financial covenant of the Credit Facility did not restrict the Company’s ability to borrow on the unused portion of the Credit Facility, and the Company was in compliance with all covenants under all of its debt agreements. At June 30, 2015 , $458 million remained available under the Company’s Credit Facility, after giving effect to the borrowings under the commercial paper program backstopped by the Credit Facility, the outstanding U.S. letters of credit and the borrowings under the multi-currency revolver. Trade Receivables Securitization On July 24, 2015 , the Company entered into the Sixth Amendment and Joinder (the “Amendment”) to the Third Amended and Restated Receivables Purchase Agreement (the “Securitization Agreement”), which increased the maximum amount of borrowings available under the Securitization Agreement from $295 million to $330 million . The Amendment also increased the number of participating banks from three to four . There were no other material changes to the Securitization Agreement as a result of the Amendment. Senior Notes At June 30, 2015, the Company’s $250 million 2.95% senior notes maturing on June 15, 2016 (the “2016 Notes”) and the $250 million 3.25% senior notes maturing on October 1, 2015 (the “2015 Notes”) were included in the “Current portion of long-term debt” line item on the Company’s consolidated balance sheet. Aggregate Long-term Debt Maturities The aggregate maturities of long-term debt at June 30, 2015 are as follows: (In thousands) Debt Maturities (a) Remainder of fiscal 2016 $ 250,111 March 31, 2017 250,281 March 31, 2018 620,095 March 31, 2019 — March 31, 2020 356,315 Thereafter 550,000 $ 2,026,802 ____________________ (a) Outstanding borrowings under the Securitization Agreement at June 30, 2015 are reflected as maturing at the agreement’s expiration in December 2017. Outstanding borrowings under the Credit Facility at June 30, 2015 are reflected as maturing at the agreement’s expiration in November 2019. The Company’s senior notes are reflected in the debt maturity schedule at their maturity values rather than their carrying values, which are net of aggregate discounts of $1.3 million at June 30, 2015 . |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements [Text Block] | FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities recorded at fair value are classified based upon the level of judgment associated with the inputs used to measure their fair value. The hierarchical levels related to the subjectivity of the valuation inputs are defined as follows: • Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities at the measurement date. • Level 2 inputs are inputs, other than quoted prices included within Level 1, that are directly or indirectly observable through corroboration with observable market data at the measurement date. • Level 3 inputs are unobservable inputs that reflect management’s best estimate of the assumptions (including assumptions about risk) that market participants would use in pricing the asset or liability at the measurement date. The carrying values of cash, trade receivables, other current receivables, trade payables and other current liabilities (e.g., deposit liabilities, cash overdrafts, etc.) approximate fair value based on the short-term maturity of these financial instruments. Assets and Liabilities Measured at Fair Value on a Recurring Basis Assets and liabilities measured at fair value on a recurring basis at June 30, 2015 and March 31, 2015 are categorized in the tables below based on the lowest level of significant input to the valuation. During the periods presented, there were no transfers between fair value hierarchical levels. Balance at Quoted Prices in Active Markets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 (In thousands) June 30, 2015 Assets: Deferred compensation plan assets $ 17,107 $ 17,107 $ — $ — Liabilities: Deferred compensation plan liabilities $ 17,107 $ 17,107 $ — $ — Balance at Quoted Prices in Active Markets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 (In thousands) March 31, 2015 Assets: Deferred compensation plan assets $ 16,288 $ 16,288 $ — $ — Liabilities: Deferred compensation plan liabilities $ 16,288 $ 16,288 $ — $ — The following is a general description of the valuation methodologies used for assets and liabilities measured at fair value: Deferred compensation plan assets and corresponding liabilities — The Company’s deferred compensation plan assets consist of open-ended mutual funds (Level 1) and are included within other non-current assets on the consolidated balance sheets. The Company’s deferred compensation plan liabilities are equal to the plan’s assets and are included within other non-current liabilities on the consolidated balance sheets. Gains or losses on the deferred compensation plan assets are recognized as other income, net, while gains or losses on the deferred compensation plan liabilities are recognized as compensation expense in the consolidated statements of earnings. Fair Value of Debt The carrying value of debt, which is reported on the Company’s consolidated balance sheets, generally reflects the cash proceeds received upon its issuance, net of subsequent repayments. The fair values of the fixed rate notes disclosed in the following table were determined based on quoted prices from the broker/dealer market, observable market inputs for similarly termed treasury notes adjusted for the Company’s credit spread and inputs management believes a market participant would use in determining imputed interest for obligations without a stated interest rate (Level 2). The fair values of the revolving credit borrowings, securitized receivables and commercial paper approximate their carrying values (see Note 7). Carrying Value at Fair Value at Carrying Value at Fair Value at (In thousands) June 30, 2015 June 30, 2015 March 31, 2015 March 31, 2015 3.25% senior notes due 2015 $ 249,981 $ 250,945 $ 249,962 $ 252,520 2.95% senior notes due 2016 249,936 253,708 249,918 254,953 1.65% senior notes due 2018 324,715 323,105 324,688 323,921 2.375% senior notes due 2020 274,802 271,816 274,791 274,821 2.90% senior notes due 2022 249,794 241,933 249,787 249,028 3.65% senior notes due 2024 299,476 299,130 299,462 310,500 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Jun. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity [Text Block] | STOCKHOLDERS’ EQUITY Changes in stockholders’ equity were as follows: (In thousands of shares) Shares of Common Stock, $0.01 Par Value Shares of Treasury Stock Balance at March 31, 2015 87,554 (12,197 ) Common stock issuance (a) 54 Reissuance of treasury stock for stock option exercises 163 Purchase of treasury stock (b) (1,000 ) Balance at June 30, 2015 87,608 (13,034 ) (In thousands) Common Stock Capital in Excess of Par Value Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock Total Stockholders’ Equity Balance at March 31, 2015 $ 876 $ 853,800 $ 2,231,026 $ (14,853 ) $ (919,263 ) $ 2,151,586 Net earnings 88,235 88,235 Other comprehensive income (loss), net of tax 1,891 1,891 Common stock issuances and reissuances of treasury stock - employee benefit plans (c) — 4,836 (5,993 ) 12,704 11,547 Purchase of treasury stock (b) (103,839 ) (103,839 ) Excess tax benefit from stock option exercises 3,891 3,891 Dividends paid on common stock ($0.60 per share) (44,873 ) (44,873 ) Stock-based compensation (d) 13,650 13,650 Balance at June 30, 2015 $ 876 $ 876,177 $ 2,268,395 $ (12,962 ) $ (1,010,398 ) $ 2,122,088 ___________________ (a) Issuance of common stock for purchases through the Amended and Restated 2003 Employee Stock Purchase Plan (“Employee Stock Purchase Plan” or “ESPP”). (b) Refer to “Stock Repurchase Program” section below for details. (c) Issuance of common stock for purchases through the Employee Stock Purchase Plan and reissuance of treasury stock for stock option exercises. (d) The Company recognized compensation expense with a corresponding amount recorded to capital in excess of par value. The following table presents the gross and net changes in the balances within each component of accumulated other comprehensive income (“AOCI”) for the three months ended June 30, 2015 : (In thousands) Foreign Currency Translation Adjustments Treasury Rate Lock Agreement Total Accumulated Other Comprehensive Income (Loss) Balance at March 31, 2015 $ (14,690 ) $ (163 ) $ (14,853 ) Other comprehensive income (loss) before reclassifications 1,810 — 1,810 Amounts reclassified from AOCI (e) — 129 129 Tax effect of other comprehensive income items — (48 ) (48 ) Other comprehensive income (loss), net of tax 1,810 81 1,891 Balance at June 30, 2015 $ (12,880 ) $ (82 ) $ (12,962 ) ___________________ (e) The reclassifications out of AOCI were associated with a loss on a treasury rate lock agreement from July 2010 related to the issuance of the Company’s 2015 Notes, which is being reclassified into earnings (interest expense) over the term of the 2015 Notes. The effects on the respective line items of the consolidated statements of earnings impacted by the reclassifications were not material for the three months ended June 30, 2015 and 2014 . Stock Repurchase Program On May 28, 2015, the Company announced plans to purchase up to $500 million of Airgas, Inc. common stock under a stock repurchase program approved by the Company’s Board of Directors. Airgas may repurchase shares from time to time for cash in open market transactions or in privately-negotiated transactions in accordance with applicable federal securities laws. The Company will determine the timing and the amount of any repurchases based on its evaluation of market conditions, share price, and other factors. The stock repurchase program has no pre-established closing date and may be suspended or discontinued at any time. From the announcement date of the program through June 30, 2015 , the Company repurchased 1.0 million shares on the open market at an average price of $103.84 . At June 30, 2015 , $396 million was available for additional share repurchases under the program. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Jun. 30, 2015 | |
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |
Stock-Based Compensation [Text Block] | STOCK-BASED COMPENSATION The Company recognizes stock-based compensation expense for its Second Amended and Restated 2006 Equity Incentive Plan (“Equity Incentive Plan”) and Employee Stock Purchase Plan. The following table summarizes stock-based compensation expense recognized by the Company for the three months ended June 30, 2015 and 2014 : Three Months Ended June 30, (In thousands) 2015 2014 Stock-based compensation expense related to: Equity Incentive Plan (a) $ 12,495 $ 13,772 Employee Stock Purchase Plan - options to purchase stock 1,155 1,058 13,650 14,830 Tax benefit (4,964 ) (5,509 ) Stock-based compensation expense, net of tax $ 8,686 $ 9,321 ___________________ (a) Stock-based compensation expense related to stock options granted under the Company’s Equity Incentive Plan is highest during the Company’s fiscal first quarter ended June 30 th relative to other quarters during the year. This is primarily due to a retirement-eligible vesting provision under the plan and the timing of the majority of the Company’s stock option awards each year during its fiscal first quarter. Fair Value The Company utilizes the Black-Scholes option pricing model to determine the fair value of stock options. The weighted-average grant date fair value of stock options granted during the three months ended June 30, 2015 and 2014 was $19.91 and $28.96 , respectively. Summary of Stock Option Activity The following table summarizes the stock option activity during the three months ended June 30, 2015 : (In thousands, except per share amounts) Number of Stock Options Weighted-Average Exercise Price Outstanding at March 31, 2015 4,974 $ 79.76 Granted 963 $ 103.62 Exercised (178 ) $ 45.74 Forfeited (26 ) $ 98.22 Outstanding at June 30, 2015 5,733 $ 84.73 Vested or expected to vest at June 30, 2015 5,701 $ 84.62 Exercisable at June 30, 2015 3,492 $ 73.15 A total of 2.3 million shares of common stock were available for grant under the Equity Incentive Plan as of June 30, 2015 . As of June 30, 2015 , $54.1 million of unrecognized non-cash compensation expense related to non-vested stock options is expected to be recognized over a weighted-average vesting period of 1.9 years. Employee Stock Purchase Plan The ESPP encourages and assists employees in acquiring an equity interest in the Company. As of June 30, 2015 , the ESPP had 1.1 million shares of Company common stock available for issuance. Compensation expense is measured based on the fair value of the employees’ option to purchase shares of common stock at the grant date and is recognized over the future periods in which the related employee service is rendered. The fair value per share of employee options to purchase shares under the ESPP was $21.19 and $20.44 for the three months ended June 30, 2015 and 2014 , respectively. The fair value of the employees’ option to purchase shares of common stock was estimated using the Black-Scholes model. ESPP - Purchase Option Activity The following table summarizes the activity of the ESPP during the three months ended June 30, 2015 : (In thousands, except per share amounts) Number of Purchase Options Weighted-Average Exercise Price Outstanding at March 31, 2015 54 $ 86.47 Granted 218 $ 89.33 Exercised (54 ) $ 89.33 Outstanding at June 30, 2015 218 $ 88.62 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | EARNINGS PER SHARE Basic earnings per share is calculated by dividing net earnings by the weighted average number of shares of the Company’s common stock outstanding during the period. Outstanding shares consist of issued shares less treasury stock. Diluted earnings per share is calculated by dividing net earnings by the weighted average common shares outstanding adjusted for the dilutive effect of common stock equivalents related to stock options and the Company’s ESPP. Outstanding stock options that are anti-dilutive are excluded from the Company’s diluted earnings per share computation. There were approximately 2.1 million and 1.5 million shares covered by outstanding stock options that were not dilutive for the three months ended June 30, 2015 and 2014 , respectively. The following table presents the computation of basic and diluted weighted average common shares outstanding for the three months ended June 30, 2015 and 2014 : Three Months Ended June 30, (In thousands) 2015 2014 Weighted average common shares outstanding: Basic shares outstanding 75,206 74,272 Incremental shares from assumed exercises of stock options and options under the ESPP 899 1,211 Diluted shares outstanding 76,105 75,483 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies [Text Block] | COMMITMENTS AND CONTINGENCIES Litigation The Company is involved in various legal and regulatory proceedings that have arisen in the ordinary course of business and have not been fully adjudicated. These actions, when ultimately concluded and determined, will not, in the opinion of management, have a material adverse effect upon the Company’s consolidated financial condition, results of operations or liquidity. |
Summary by Business Segment
Summary by Business Segment | 3 Months Ended |
Jun. 30, 2015 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Summary by Business Segment [Text Block] | SUMMARY BY BUSINESS SEGMENT Business segment information for the Company’s Distribution and All Other Operations business segments is presented in the following table for the three months ended June 30, 2015 and 2014 . Three Months Ended Three Months Ended June 30, 2015 June 30, 2014 (In thousands) Distribution All Other Ops. Eliminations Total Distribution All Other Ops. Eliminations Total Gas and rent $ 717,642 $ 160,027 $ (7,596 ) $ 870,073 $ 696,565 $ 136,092 $ (7,066 ) $ 825,591 Hardgoods 478,266 1,374 (3 ) 479,637 487,047 951 (2 ) 487,996 Net sales (a) 1,195,908 161,401 (7,599 ) 1,349,710 1,183,612 137,043 (7,068 ) 1,313,587 Cost of products sold (excluding depreciation) (a) 521,240 83,525 (7,599 ) 597,166 520,933 69,541 (7,068 ) 583,406 Selling, distribution and administrative expenses 464,809 48,967 — 513,776 449,639 45,074 — 494,713 Depreciation 71,020 7,055 — 78,075 66,462 6,173 — 72,635 Amortization 7,162 953 — 8,115 6,724 1,028 — 7,752 Total costs and expenses 1,064,231 140,500 (7,599 ) 1,197,132 1,043,758 121,816 (7,068 ) 1,158,506 Operating income $ 131,677 $ 20,901 $ — $ 152,578 $ 139,854 $ 15,227 $ — $ 155,081 ____________________ (a) Amounts in the “Eliminations” column represent the elimination of intercompany sales and associated gross profit on sales from the Company’s All Other Operations business segment to its Distribution business segment. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Jun. 30, 2015 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information [Text Block] | SUPPLEMENTAL CASH FLOW INFORMATION Cash Paid for Interest and Income Taxes Cash paid for interest and income taxes was as follows: Three Months Ended June 30, (In thousands) 2015 2014 Interest $ 14,339 $ 14,411 Income taxes, net of refunds 2,038 7,370 Noncash Investing and Financing Activities Liabilities assumed and stock issued as a result of acquisitions were as follows: Three Months Ended June 30, (In thousands) 2015 2014 Fair value of assets acquired $ 31,656 $ 35,761 Net cash paid for acquisitions (a) (26,182 ) (23,463 ) Stock issued for acquisition (b) — (4,458 ) Liabilities assumed $ 5,474 $ 7,840 ____________________ (a) Includes cash paid, net of cash acquired, for current year acquisitions as well as payments for the settlement of holdback liabilities associated with prior year acquisitions. (b) Represents shares of Airgas, Inc. common stock issued in connection with a single prior year acquisition. |
Subsequent Event
Subsequent Event | 3 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS On August 4, 2015 , the Company announced that its Board of Directors declared a regular quarterly cash dividend of $0.60 per share. The dividend is payable on September 30, 2015 to stockholders of record as of September 15, 2015 . During the month of July 2015, the Company acquired four businesses with historical annual sales of approximately $41 million . A total of approximately $70 million in net cash was paid for the four businesses, and the Company is currently in the process of completing preliminary purchase price allocations for the acquisitions. As described in Note 7, in July 2015 the Company extended an agreement with a financial institution that provides access to short-term advances not to exceed $35 million . The agreement now expires on July 31, 2016 . Also as described in Note 7, on July 24, 2015 , the Company executed an amendment to (1) increase the maximum amount of borrowings available under the Securitization Agreement to $330 million and (2) increase the number of participating banks to four . |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Summary of the Consideration Transferred and the Fair Values of the Assets Acquired and Liabilities Assumed [Table Text Block] | The following table summarizes the consideration transferred and the estimated fair values of the assets acquired and liabilities assumed for fiscal 2016 acquisitions, as well as adjustments to finalize the valuations of certain prior year acquisitions. Valuation adjustments related to prior year acquisitions were not significant. (In thousands) Consideration Cash (a) $ 26,182 Recognized amounts of identifiable assets acquired and liabilities assumed Current assets, net $ 4,409 Plant and equipment 3,523 Other intangible assets 11,840 Current liabilities (4,255 ) Non-current liabilities (1,219 ) Total identifiable net assets 14,298 Goodwill 11,884 $ 26,182 ____________________ (a) Includes cash paid, net of cash acquired, for current year acquisitions as well as payments for the settlement of holdback liabilities associated with prior year acquisitions. |
Inventories, Net (Tables)
Inventories, Net (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Inventory, Net [Abstract] | |
Inventories, Net [Table Text Block] | Inventories, net, consist of: (In thousands) June 30, 2015 March 31, 2015 Hardgoods $ 311,920 $ 311,453 Gases 148,922 162,617 $ 460,842 $ 474,070 |
Goodwill And Other Intangible24
Goodwill And Other Intangible Assets (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes In Goodwill by Business Segment [Table Text Block] | Changes in the carrying amount of goodwill by business segment for the three months ended June 30, 2015 were as follows: (In thousands) Distribution Business Segment All Other Operations Business Segment Total Balance at March 31, 2015 $ 1,116,569 $ 197,075 $ 1,313,644 Acquisitions (a) 11,884 — 11,884 Other adjustments, including foreign currency translation 3,007 16 3,023 Balance at June 30, 2015 $ 1,131,460 $ 197,091 $ 1,328,551 ____________________ (a) Includes acquisitions completed during the current year and adjustments made to prior year acquisitions. |
Schedule of Finite-Lived Intangible Assets Acquired by Major Asset Class [Table Text Block] | Other intangible assets by major class are as follows: June 30, 2015 March 31, 2015 (In thousands) Weighted Average Amortization Period (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Amortization Period (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships 17 $ 353,575 $ (126,243 ) $ 227,332 17 $ 345,805 $ (120,321 ) $ 225,484 Non-competition agreements 6 47,029 (25,758 ) 21,271 6 43,204 (24,335 ) 18,869 Other 200 (38 ) 162 200 (34 ) 166 $ 400,804 $ (152,039 ) $ 248,765 $ 389,209 $ (144,690 ) $ 244,519 |
Accrued Expenses and Other Cu25
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Accrued Expenses and Other Current Liabilities [Table Text Block] | Accrued expenses and other current liabilities include: (In thousands) June 30, 2015 March 31, 2015 Accrued payroll and employee benefits $ 80,642 $ 98,547 Business insurance reserves (a) 50,028 49,934 Income taxes (b) 33,351 — Taxes other than income taxes 26,356 22,863 Cash overdraft 63,968 71,537 Deferred rental revenue 33,602 34,538 Accrued interest 13,096 12,860 Other accrued expenses and current liabilities 62,715 56,600 $ 363,758 $ 346,879 ____________________ (a) With respect to the business insurance reserves above, the Company had corresponding insurance receivables of $11.6 million at both June 30, 2015 and March 31, 2015 , which are included within the “Prepaid expenses and other current assets” line item on the Company’s consolidated balance sheets. The insurance receivables represent the balance of probable claim losses in excess of the Company’s deductible for which the Company is fully insured. (b) At March 31, 2015 , the Company was in an income tax refund position which was reflected as a current asset, based on the timing of income tax payments. |
Indebtedness (Tables)
Indebtedness (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Debt Instruments [Abstract] | |
Schedule Of Debt [Table Text Block] | Total debt consists of: (In thousands) June 30, 2015 March 31, 2015 Short-term Money market loans $ — $ — Commercial paper 415,964 325,871 Short-term debt $ 415,964 $ 325,871 Long-term Trade receivables securitization $ 295,000 $ 295,000 Revolving credit borrowings - U.S. — — Revolving credit borrowings - Multi-currency 74,794 48,332 Revolving credit borrowings - France 6,521 6,277 Senior notes, net 1,648,704 1,648,608 Other long-term debt 486 555 Total long-term debt 2,025,505 1,998,772 Less current portion of long-term debt (500,063 ) (250,110 ) Long-term debt, excluding current portion $ 1,525,442 $ 1,748,662 Total debt $ 2,441,469 $ 2,324,643 |
Schedule of Maturities of Long-term Debt [Table Text Block] | The aggregate maturities of long-term debt at June 30, 2015 are as follows: (In thousands) Debt Maturities (a) Remainder of fiscal 2016 $ 250,111 March 31, 2017 250,281 March 31, 2018 620,095 March 31, 2019 — March 31, 2020 356,315 Thereafter 550,000 $ 2,026,802 ____________________ (a) Outstanding borrowings under the Securitization Agreement at June 30, 2015 are reflected as maturing at the agreement’s expiration in December 2017. Outstanding borrowings under the Credit Facility at June 30, 2015 are reflected as maturing at the agreement’s expiration in November 2019. The Company’s senior notes are reflected in the debt maturity schedule at their maturity values rather than their carrying values, which are net of aggregate discounts of $1.3 million at June 30, 2015 . |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis [Table Text Block] | Assets and liabilities measured at fair value on a recurring basis at June 30, 2015 and March 31, 2015 are categorized in the tables below based on the lowest level of significant input to the valuation. During the periods presented, there were no transfers between fair value hierarchical levels. Balance at Quoted Prices in Active Markets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 (In thousands) June 30, 2015 Assets: Deferred compensation plan assets $ 17,107 $ 17,107 $ — $ — Liabilities: Deferred compensation plan liabilities $ 17,107 $ 17,107 $ — $ — Balance at Quoted Prices in Active Markets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 (In thousands) March 31, 2015 Assets: Deferred compensation plan assets $ 16,288 $ 16,288 $ — $ — Liabilities: Deferred compensation plan liabilities $ 16,288 $ 16,288 $ — $ — |
Fair Value Of Debt [Table Text Block] | The fair values of the fixed rate notes disclosed in the following table were determined based on quoted prices from the broker/dealer market, observable market inputs for similarly termed treasury notes adjusted for the Company’s credit spread and inputs management believes a market participant would use in determining imputed interest for obligations without a stated interest rate (Level 2). The fair values of the revolving credit borrowings, securitized receivables and commercial paper approximate their carrying values (see Note 7). Carrying Value at Fair Value at Carrying Value at Fair Value at (In thousands) June 30, 2015 June 30, 2015 March 31, 2015 March 31, 2015 3.25% senior notes due 2015 $ 249,981 $ 250,945 $ 249,962 $ 252,520 2.95% senior notes due 2016 249,936 253,708 249,918 254,953 1.65% senior notes due 2018 324,715 323,105 324,688 323,921 2.375% senior notes due 2020 274,802 271,816 274,791 274,821 2.90% senior notes due 2022 249,794 241,933 249,787 249,028 3.65% senior notes due 2024 299,476 299,130 299,462 310,500 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stockholders' Equity [Table Text Block] | Changes in stockholders’ equity were as follows: (In thousands of shares) Shares of Common Stock, $0.01 Par Value Shares of Treasury Stock Balance at March 31, 2015 87,554 (12,197 ) Common stock issuance (a) 54 Reissuance of treasury stock for stock option exercises 163 Purchase of treasury stock (b) (1,000 ) Balance at June 30, 2015 87,608 (13,034 ) (In thousands) Common Stock Capital in Excess of Par Value Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock Total Stockholders’ Equity Balance at March 31, 2015 $ 876 $ 853,800 $ 2,231,026 $ (14,853 ) $ (919,263 ) $ 2,151,586 Net earnings 88,235 88,235 Other comprehensive income (loss), net of tax 1,891 1,891 Common stock issuances and reissuances of treasury stock - employee benefit plans (c) — 4,836 (5,993 ) 12,704 11,547 Purchase of treasury stock (b) (103,839 ) (103,839 ) Excess tax benefit from stock option exercises 3,891 3,891 Dividends paid on common stock ($0.60 per share) (44,873 ) (44,873 ) Stock-based compensation (d) 13,650 13,650 Balance at June 30, 2015 $ 876 $ 876,177 $ 2,268,395 $ (12,962 ) $ (1,010,398 ) $ 2,122,088 ___________________ (a) Issuance of common stock for purchases through the Amended and Restated 2003 Employee Stock Purchase Plan (“Employee Stock Purchase Plan” or “ESPP”). (b) Refer to “Stock Repurchase Program” section below for details. (c) Issuance of common stock for purchases through the Employee Stock Purchase Plan and reissuance of treasury stock for stock option exercises. (d) The Company recognized compensation expense with a corresponding amount recorded to capital in excess of par value. |
Gross and Net Changes in the Balances within Each Component of AOCI [Table Text Block] | The following table presents the gross and net changes in the balances within each component of accumulated other comprehensive income (“AOCI”) for the three months ended June 30, 2015 : (In thousands) Foreign Currency Translation Adjustments Treasury Rate Lock Agreement Total Accumulated Other Comprehensive Income (Loss) Balance at March 31, 2015 $ (14,690 ) $ (163 ) $ (14,853 ) Other comprehensive income (loss) before reclassifications 1,810 — 1,810 Amounts reclassified from AOCI (e) — 129 129 Tax effect of other comprehensive income items — (48 ) (48 ) Other comprehensive income (loss), net of tax 1,810 81 1,891 Balance at June 30, 2015 $ (12,880 ) $ (82 ) $ (12,962 ) ___________________ (e) The reclassifications out of AOCI were associated with a loss on a treasury rate lock agreement from July 2010 related to the issuance of the Company’s 2015 Notes, which is being reclassified into earnings (interest expense) over the term of the 2015 Notes. The effects on the respective line items of the consolidated statements of earnings impacted by the reclassifications were not material for the three months ended June 30, 2015 and 2014 . |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |
Stock-Based Compensation Expense Recognized [Table Text Block] | The following table summarizes stock-based compensation expense recognized by the Company for the three months ended June 30, 2015 and 2014 : Three Months Ended June 30, (In thousands) 2015 2014 Stock-based compensation expense related to: Equity Incentive Plan (a) $ 12,495 $ 13,772 Employee Stock Purchase Plan - options to purchase stock 1,155 1,058 13,650 14,830 Tax benefit (4,964 ) (5,509 ) Stock-based compensation expense, net of tax $ 8,686 $ 9,321 ___________________ (a) Stock-based compensation expense related to stock options granted under the Company’s Equity Incentive Plan is highest during the Company’s fiscal first quarter ended June 30 th relative to other quarters during the year. This is primarily due to a retirement-eligible vesting provision under the plan and the timing of the majority of the Company’s stock option awards each year during its fiscal first quarter. |
Summary of Stock Option Activity [Table Text Block] | The following table summarizes the stock option activity during the three months ended June 30, 2015 : (In thousands, except per share amounts) Number of Stock Options Weighted-Average Exercise Price Outstanding at March 31, 2015 4,974 $ 79.76 Granted 963 $ 103.62 Exercised (178 ) $ 45.74 Forfeited (26 ) $ 98.22 Outstanding at June 30, 2015 5,733 $ 84.73 Vested or expected to vest at June 30, 2015 5,701 $ 84.62 Exercisable at June 30, 2015 3,492 $ 73.15 |
ESPP - Purchase Option Activity [Table Text Block] | The following table summarizes the activity of the ESPP during the three months ended June 30, 2015 : (In thousands, except per share amounts) Number of Purchase Options Weighted-Average Exercise Price Outstanding at March 31, 2015 54 $ 86.47 Granted 218 $ 89.33 Exercised (54 ) $ 89.33 Outstanding at June 30, 2015 218 $ 88.62 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Computation Of Basic And Diluted Weighted Average Common Shares Outstanding [Table Text Block] | The following table presents the computation of basic and diluted weighted average common shares outstanding for the three months ended June 30, 2015 and 2014 : Three Months Ended June 30, (In thousands) 2015 2014 Weighted average common shares outstanding: Basic shares outstanding 75,206 74,272 Incremental shares from assumed exercises of stock options and options under the ESPP 899 1,211 Diluted shares outstanding 76,105 75,483 |
Summary by Business Segment (Ta
Summary by Business Segment (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Financial Information by Segment [Table Text Block] | Three Months Ended Three Months Ended June 30, 2015 June 30, 2014 (In thousands) Distribution All Other Ops. Eliminations Total Distribution All Other Ops. Eliminations Total Gas and rent $ 717,642 $ 160,027 $ (7,596 ) $ 870,073 $ 696,565 $ 136,092 $ (7,066 ) $ 825,591 Hardgoods 478,266 1,374 (3 ) 479,637 487,047 951 (2 ) 487,996 Net sales (a) 1,195,908 161,401 (7,599 ) 1,349,710 1,183,612 137,043 (7,068 ) 1,313,587 Cost of products sold (excluding depreciation) (a) 521,240 83,525 (7,599 ) 597,166 520,933 69,541 (7,068 ) 583,406 Selling, distribution and administrative expenses 464,809 48,967 — 513,776 449,639 45,074 — 494,713 Depreciation 71,020 7,055 — 78,075 66,462 6,173 — 72,635 Amortization 7,162 953 — 8,115 6,724 1,028 — 7,752 Total costs and expenses 1,064,231 140,500 (7,599 ) 1,197,132 1,043,758 121,816 (7,068 ) 1,158,506 Operating income $ 131,677 $ 20,901 $ — $ 152,578 $ 139,854 $ 15,227 $ — $ 155,081 ____________________ (a) Amounts in the “Eliminations” column represent the elimination of intercompany sales and associated gross profit on sales from the Company’s All Other Operations business segment to its Distribution business segment. |
Supplemental Cash Flow Inform32
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Supplemental Cash Flow Information [Abstract] | |
Cash Paid For Interest And Income Taxes [Table Text Block] | Cash paid for interest and income taxes was as follows: Three Months Ended June 30, (In thousands) 2015 2014 Interest $ 14,339 $ 14,411 Income taxes, net of refunds 2,038 7,370 |
Schedule of Noncash or Part Noncash Acquisitions [Table Text Block] | Liabilities assumed and stock issued as a result of acquisitions were as follows: Three Months Ended June 30, (In thousands) 2015 2014 Fair value of assets acquired $ 31,656 $ 35,761 Net cash paid for acquisitions (a) (26,182 ) (23,463 ) Stock issued for acquisition (b) — (4,458 ) Liabilities assumed $ 5,474 $ 7,840 ____________________ (a) Includes cash paid, net of cash acquired, for current year acquisitions as well as payments for the settlement of holdback liabilities associated with prior year acquisitions. (b) Represents shares of Airgas, Inc. common stock issued in connection with a single prior year acquisition. |
Acquisitions (Acquisitions Narr
Acquisitions (Acquisitions Narrative) (Details) - Jun. 30, 2015 $ in Thousands | USD ($)businesses_acquired | |
Business Acquisition [Line Items] | ||
Goodwill, acquired during period | [1] | $ 11,884 |
Series of Individually Immaterial Business Acquisitions [Member] | ||
Business Acquisition [Line Items] | ||
Number of businesses acquired | businesses_acquired | 5 | |
Historical annual sales of acquired businesses | $ 33,000 | |
Business acquisition, transaction costs | 1,200 | |
Business combination, pro forma information, revenue of acquiree since acquisition date, actual | 4,000 | |
Fair value of trade receivables acquired | 1,500 | |
Gross contractual amounts of acquired receivables | 1,700 | |
Goodwill, acquired during period | 11,800 | |
Goodwill deductible for income tax purposes | 7,400 | |
Series of Individually Immaterial Business Acquisitions [Member] | Customer relationships [Member] | ||
Business Acquisition [Line Items] | ||
Other intangible assets acquired | 7,600 | |
Series of Individually Immaterial Business Acquisitions [Member] | Non-competition agreements [Member] | ||
Business Acquisition [Line Items] | ||
Other intangible assets acquired | 4,300 | |
Distribution Business Segment [Member] | ||
Business Acquisition [Line Items] | ||
Goodwill, acquired during period | [1] | $ 11,884 |
Distribution Business Segment [Member] | Series of Individually Immaterial Business Acquisitions [Member] | ||
Business Acquisition [Line Items] | ||
Number of businesses acquired | businesses_acquired | 5 | |
Historical annual sales of acquired businesses | $ 33,000 | |
Business acquisition, transaction costs | 1,200 | |
Business combination, pro forma information, revenue of acquiree since acquisition date, actual | 4,000 | |
Fair value of trade receivables acquired | 1,500 | |
Gross contractual amounts of acquired receivables | 1,700 | |
Goodwill, acquired during period | 11,800 | |
Goodwill deductible for income tax purposes | 7,400 | |
Distribution Business Segment [Member] | Series of Individually Immaterial Business Acquisitions [Member] | Customer relationships [Member] | ||
Business Acquisition [Line Items] | ||
Other intangible assets acquired | 7,600 | |
Distribution Business Segment [Member] | Series of Individually Immaterial Business Acquisitions [Member] | Non-competition agreements [Member] | ||
Business Acquisition [Line Items] | ||
Other intangible assets acquired | $ 4,300 | |
[1] | Includes acquisitions completed during the current year and adjustments made to prior year acquisitions. |
Acquisitions (Summary of the Co
Acquisitions (Summary of the Consideration Transferred and the Fair Values of the Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2015 | ||
Consideration | ||||
Cash | $ 26,182 | $ 23,463 | ||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||
Goodwill | 1,328,551 | $ 1,313,644 | ||
Series of Individually Immaterial Business Acquisitions [Member] | ||||
Consideration | ||||
Cash | [1] | 26,182 | ||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||
Current assets, net | 4,409 | |||
Plant and equipment | 3,523 | |||
Other intangible assets | 11,840 | |||
Current liabilities | (4,255) | |||
Non-current liabilities | (1,219) | |||
Total identifiable net assets | 14,298 | |||
Goodwill | 11,884 | |||
Recognized amounts of identifiable assets acquired, goodwill, and liabilities assumed, net | 26,182 | |||
Distribution Business Segment [Member] | ||||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||
Goodwill | 1,131,460 | $ 1,116,569 | ||
Distribution Business Segment [Member] | Series of Individually Immaterial Business Acquisitions [Member] | ||||
Consideration | ||||
Cash | [1] | 26,182 | ||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||
Current assets, net | 4,409 | |||
Plant and equipment | 3,523 | |||
Other intangible assets | 11,840 | |||
Current liabilities | (4,255) | |||
Non-current liabilities | (1,219) | |||
Total identifiable net assets | 14,298 | |||
Goodwill | 11,884 | |||
Recognized amounts of identifiable assets acquired, goodwill, and liabilities assumed, net | $ 26,182 | |||
[1] | Includes cash paid, net of cash acquired, for current year acquisitions as well as payments for the settlement of holdback liabilities associated with prior year acquisitions. |
Inventories, Net (Details)
Inventories, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 |
Inventory [Line Items] | ||
Inventories, net | $ 460,842 | $ 474,070 |
Hardgoods [Member] | ||
Inventory [Line Items] | ||
Inventories, net | 311,920 | 311,453 |
Gases [Member] | ||
Inventory [Line Items] | ||
Inventories, net | $ 148,922 | $ 162,617 |
Goodwill And Other Intangible36
Goodwill And Other Intangible Assets (Changes In Goodwill) (Details) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015USD ($) | ||
Goodwill [Roll Forward] | ||
Balance at March 31, 2015 | $ 1,313,644 | |
Acquisitions | [1] | 11,884 |
Other adjustments, including foreign currency translation | 3,023 | |
Balance at June 30, 2015 | 1,328,551 | |
Distribution Business Segment [Member] | ||
Goodwill [Roll Forward] | ||
Balance at March 31, 2015 | 1,116,569 | |
Acquisitions | [1] | 11,884 |
Other adjustments, including foreign currency translation | 3,007 | |
Balance at June 30, 2015 | 1,131,460 | |
All Other Operations Business Segment [Member] | ||
Goodwill [Roll Forward] | ||
Balance at March 31, 2015 | 197,075 | |
Acquisitions | [1] | 0 |
Other adjustments, including foreign currency translation | 16 | |
Balance at June 30, 2015 | $ 197,091 | |
[1] | Includes acquisitions completed during the current year and adjustments made to prior year acquisitions. |
Goodwill And Other Intangible37
Goodwill And Other Intangible Assets (Other Intangibles) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2015 | |
Other intangible assets by major class | |||
Gross carrying amount | $ 400,804 | $ 389,209 | |
Accumulated amortization | (152,039) | (144,690) | |
Net carrying amount | 248,765 | 244,519 | |
Amortization | 8,115 | $ 7,752 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Estimated future amortization expense in remainder of 2016 | 22,900 | ||
Estimated future amortization expense in 2017 | 28,700 | ||
Estimated future amortization expense in 2018 | 26,400 | ||
Estimated future amortization expense in 2019 | 24,300 | ||
Estimated future amortization expense in 2020 | 22,800 | ||
Estimated future amortization expense thereafter | 123,700 | ||
Customer relationships [Member] | |||
Other intangible assets by major class | |||
Gross carrying amount | 353,575 | 345,805 | |
Accumulated amortization | (126,243) | (120,321) | |
Net carrying amount | 227,332 | 225,484 | |
Non-competition agreements [Member] | |||
Other intangible assets by major class | |||
Gross carrying amount | 47,029 | 43,204 | |
Accumulated amortization | (25,758) | (24,335) | |
Net carrying amount | 21,271 | 18,869 | |
Other intangible assets [Member] | |||
Other intangible assets by major class | |||
Gross carrying amount | 200 | 200 | |
Accumulated amortization | (38) | (34) | |
Net carrying amount | 162 | $ 166 | |
Customer relationships, non-competition agreements and other [Member] | |||
Other intangible assets by major class | |||
Amortization | $ 7,600 | $ 7,400 | |
Weighted Average [Member] | Customer relationships [Member] | |||
Other intangible assets by major class | |||
Other intangible assets, remaining amortization period | 17 years | 17 years | |
Weighted Average [Member] | Non-competition agreements [Member] | |||
Other intangible assets by major class | |||
Other intangible assets, remaining amortization period | 6 years | 6 years |
Accrued Expenses and Other Cu38
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 | |
Accrued Liabilities and Other Liabilities [Abstract] | |||
Accrued payroll and employee benefits | $ 80,642 | $ 98,547 | |
Business insurance reserves | [1] | 50,028 | 49,934 |
Income taxes | [2] | 33,351 | 0 |
Taxes other than income taxes | 26,356 | 22,863 | |
Cash overdraft | 63,968 | 71,537 | |
Deferred rental revenue | 33,602 | 34,538 | |
Accrued interest | 13,096 | 12,860 | |
Other accrued expenses and current liabilities | 62,715 | 56,600 | |
Accrued expenses and other current liabilities | 363,758 | 346,879 | |
Insurance receivables | $ 11,600 | $ 11,600 | |
[1] | With respect to the business insurance reserves above, the Company had corresponding insurance receivables of $11.6 million at both June 30, 2015 and March 31, 2015, which are included within the “Prepaid expenses and other current assets” line item on the Company’s consolidated balance sheets. The insurance receivables represent the balance of probable claim losses in excess of the Company’s deductible for which the Company is fully insured. | ||
[2] | At March 31, 2015, the Company was in an income tax refund position which was reflected as a current asset, based on the timing of income tax payments. |
Indebtedness (Schedule of Debt)
Indebtedness (Schedule of Debt) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 |
Debt Instrument [Line Items] | ||
Short-term debt | $ 415,964 | $ 325,871 |
Long-term debt | 2,025,505 | 1,998,772 |
Less current portion of long-term debt | (500,063) | (250,110) |
Long-term debt, excluding current portion | 1,525,442 | 1,748,662 |
Total debt | 2,441,469 | 2,324,643 |
Money market loans [Member] | ||
Debt Instrument [Line Items] | ||
Short-term debt | 0 | 0 |
Commercial paper [Member] | ||
Debt Instrument [Line Items] | ||
Short-term debt | 415,964 | 325,871 |
Trade receivables securitization [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 295,000 | 295,000 |
Revolving credit borrowings - U.S. [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 0 |
Revolving credit borrowings - Multi-currency [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 74,794 | 48,332 |
Revolving credit borrowings - France [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 6,521 | 6,277 |
Senior notes, net [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,648,704 | 1,648,608 |
Other long-term debt [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 486 | $ 555 |
Indebtedness (Money Market Loan
Indebtedness (Money Market Loans Narrative) (Details) - Money market loans [Member] - Agreement expiring in July 2016 [Member] - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2015 | Jul. 31, 2015 | |
Debt Instrument [Line Items] | ||
Short-term debt, terms | advances are generally overnight or for up to seven days. The amount, term and interest rate of an advance are established through mutual agreement with the financial institution when the Company requests such an advance | |
Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Short term debt maturity period | 7 days | |
Subsequent Event [Member] | ||
Debt Instrument [Line Items] | ||
Short-term debt, maximum borrowing amount | $ 35 |
Indebtedness (Senior Credit Fac
Indebtedness (Senior Credit Facility Narrative) (Details) $ in Millions | Jun. 30, 2015USD ($) |
Revolving credit facility [Member] | |
Senior Credit Facility [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 1,000 |
Line of credit facility, outstanding borrowings | 75 |
Letters of credit outstanding, amount | 51 |
Line of credit facility, remaining borrowing capacity | 458 |
Revolving credit borrowings - U.S. [Member] | |
Senior Credit Facility [Line Items] | |
Line of credit facility, outstanding borrowings | 0 |
Revolving credit borrowings - Multi-currency [Member] | |
Senior Credit Facility [Line Items] | |
Line of credit facility, outstanding borrowings | $ 75 |
Indebtedness (Trade Receivables
Indebtedness (Trade Receivables Securitization Narrative) (Details) - Trade receivables securitization [Member] $ in Millions | Jul. 24, 2015USD ($)banks | Jun. 30, 2015USD ($)banks |
Debt Instrument [Line Items] | ||
Trade receivables securitization, maximum borrowing amount | $ | $ 295 | |
Number of commercial banks participating in trade receivables securitization agreement | 3 | |
Subsequent Event [Member] | ||
Debt Instrument [Line Items] | ||
Trade receivables securitization, maximum borrowing amount | $ | $ 330 | |
Number of commercial banks participating in trade receivables securitization agreement | 4 |
Indebtedness (Senior Notes Narr
Indebtedness (Senior Notes Narrative) (Details) - Jun. 30, 2015 - Senior notes, net [Member] - USD ($) $ in Millions | Total |
3.25% senior notes due October 2015 [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, face amount | $ 250 |
Debt instrument, interest rate, stated percentage | 3.25% |
2.95% senior notes due June 2016 [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, face amount | $ 250 |
Debt instrument, interest rate, stated percentage | 2.95% |
Indebtedness (Schedule of Long-
Indebtedness (Schedule of Long-Term Debt Maturities) (Details) $ in Thousands | Jun. 30, 2015USD ($) | |
Maturities of Long-term Debt [Abstract] | ||
Remainder of fiscal 2016 | [1] | $ 250,111 |
March 31, 2017 | [1] | 250,281 |
March 31, 2018 | [1] | 620,095 |
March 31, 2019 | [1] | 0 |
March 31, 2020 | [1] | 356,315 |
Thereafter | [1] | 550,000 |
Total maturities of long-term debt | [1] | 2,026,802 |
Senior notes, net [Member] | ||
Maturities of Long-term Debt [Abstract] | ||
Unamortized discounts | $ 1,300 | |
[1] | Outstanding borrowings under the Securitization Agreement at June 30, 2015 are reflected as maturing at the agreement’s expiration in December 2017. Outstanding borrowings under the Credit Facility at June 30, 2015 are reflected as maturing at the agreement’s expiration in November 2019. The Company’s senior notes are reflected in the debt maturity schedule at their maturity values rather than their carrying values, which are net of aggregate discounts of $1.3 million at June 30, 2015. |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 |
Assets, Fair Value Disclosure [Abstract] | ||
Deferred compensation plan assets | $ 17,107 | $ 16,288 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Deferred compensation plan liabilities | 17,107 | 16,288 |
Quoted Prices In Active Markets Level 1 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Deferred compensation plan assets | 17,107 | 16,288 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Deferred compensation plan liabilities | 17,107 | 16,288 |
Significant Other Observable Inputs Level 2 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Deferred compensation plan assets | 0 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Deferred compensation plan liabilities | 0 | 0 |
Significant Unobservable Inputs Level 3 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Deferred compensation plan assets | 0 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Deferred compensation plan liabilities | $ 0 | $ 0 |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Value and Fair Value of Debt) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, carrying value | $ 2,025,505 | $ 1,998,772 |
3.25% senior notes due October 2015 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, carrying value | 249,981 | 249,962 |
Long-term debt, fair value | 250,945 | 252,520 |
2.95% senior notes due June 2016 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, carrying value | 249,936 | 249,918 |
Long-term debt, fair value | 253,708 | 254,953 |
1.65% senior notes due February 2018 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, carrying value | 324,715 | 324,688 |
Long-term debt, fair value | 323,105 | 323,921 |
2.375% senior notes due February 2020 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, carrying value | 274,802 | 274,791 |
Long-term debt, fair value | 271,816 | 274,821 |
2.90% senior notes due November 2022 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, carrying value | 249,794 | 249,787 |
Long-term debt, fair value | 241,933 | 249,028 |
3.65% senior notes due July 2024 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, carrying value | 299,476 | 299,462 |
Long-term debt, fair value | $ 299,130 | $ 310,500 |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule of Stockholders' Equity) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2015 | |||
Class of Stock [Line Items] | ||||||
Common stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | |||
Common stock, shares issued | 87,608 | 87,608 | 87,554 | |||
Common stock issuance | [1] | 54 | ||||
Treasury stock, shares | (13,034) | (13,034) | (12,197) | |||
Reissuance of treasury stock for stock option exercises | 163 | |||||
Purchase of treasury stock | (1,000) | (1,000) | [2] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Balance at March 31, 2015 | $ 2,151,586 | |||||
Net earnings | 88,235 | $ 88,852 | ||||
Other comprehensive income (loss), net of tax | 1,891 | $ 2,656 | ||||
Common stock issuances and reissuances of treasury stock - employee benefit plans | [3] | 11,547 | ||||
Purchase of treasury stock | [2] | (103,839) | ||||
Excess tax benefit from stock option exercises | 3,891 | |||||
Dividends paid on common stock ($0.60 per share) | (44,873) | |||||
Stock-based compensation | [4] | 13,650 | ||||
Balance at June 30, 2015 | $ 2,122,088 | $ 2,122,088 | ||||
Dividends paid per common share | $ 0.60 | |||||
Common Stock [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Balance at March 31, 2015 | $ 876 | |||||
Issuance of common stock for purchases through the Employee Stock Purchase Plan | [3] | 0 | ||||
Balance at June 30, 2015 | 876 | 876 | ||||
Capital In Excess of Par Value [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Balance at March 31, 2015 | 853,800 | |||||
Common stock issuances and reissuances of treasury stock - employee benefit plans | [3] | 4,836 | ||||
Excess tax benefit from stock option exercises | 3,891 | |||||
Stock-based compensation | [4] | 13,650 | ||||
Balance at June 30, 2015 | 876,177 | 876,177 | ||||
Retained Earnings [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Balance at March 31, 2015 | 2,231,026 | |||||
Net earnings | 88,235 | |||||
Reissuance of treasury stock for stock option exercises at lower than repurchase price | [3] | (5,993) | ||||
Dividends paid on common stock ($0.60 per share) | (44,873) | |||||
Balance at June 30, 2015 | 2,268,395 | 2,268,395 | ||||
Accumulated Other Comprehensive Income [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Balance at March 31, 2015 | (14,853) | |||||
Other comprehensive income (loss), net of tax | 1,891 | |||||
Balance at June 30, 2015 | (12,962) | (12,962) | ||||
Treasury Stock [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Balance at March 31, 2015 | (919,263) | |||||
Reissuance of treasury stock for stock option exercises | [3] | 12,704 | ||||
Purchase of treasury stock | [2] | (103,839) | ||||
Balance at June 30, 2015 | $ (1,010,398) | $ (1,010,398) | ||||
[1] | Issuance of common stock for purchases through the Amended and Restated 2003 Employee Stock Purchase Plan (“Employee Stock Purchase Plan” or “ESPP”). | |||||
[2] | Refer to “Stock Repurchase Program” section below for details. | |||||
[3] | Issuance of common stock for purchases through the Employee Stock Purchase Plan and reissuance of treasury stock for stock option exercises. | |||||
[4] | The Company recognized compensation expense with a corresponding amount recorded to capital in excess of par value. |
Stockholders' Equity (Changes i
Stockholders' Equity (Changes in Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | ||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | |||
Balance at March 31, 2015 | $ 2,151,586 | ||
Other comprehensive income (loss) before reclassifications | 1,810 | ||
Amounts reclassified from AOCI | [1] | 129 | |
Tax effect of other comprehensive income items | (48) | $ (48) | |
Other comprehensive income (loss), net of tax | 1,891 | $ 2,656 | |
Balance at June 30, 2015 | 2,122,088 | ||
Accumulated Other Comprehensive Income [Member] | |||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | |||
Balance at March 31, 2015 | (14,853) | ||
Other comprehensive income (loss), net of tax | 1,891 | ||
Balance at June 30, 2015 | (12,962) | ||
Foreign Currency Translation Adjustments [Member] | |||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | |||
Balance at March 31, 2015 | (14,690) | ||
Other comprehensive income (loss) before reclassifications | 1,810 | ||
Amounts reclassified from AOCI | 0 | ||
Tax effect of other comprehensive income items | 0 | ||
Other comprehensive income (loss), net of tax | 1,810 | ||
Balance at June 30, 2015 | (12,880) | ||
Treasury Rate Lock Agreement [Member] | |||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | |||
Balance at March 31, 2015 | (163) | ||
Other comprehensive income (loss) before reclassifications | 0 | ||
Amounts reclassified from AOCI | [1] | 129 | |
Tax effect of other comprehensive income items | (48) | ||
Other comprehensive income (loss), net of tax | 81 | ||
Balance at June 30, 2015 | $ (82) | ||
[1] | The reclassifications out of AOCI were associated with a loss on a treasury rate lock agreement from July 2010 related to the issuance of the Company’s 2015 Notes, which is being reclassified into earnings (interest expense) over the term of the 2015 Notes. The effects on the respective line items of the consolidated statements of earnings impacted by the reclassifications were not material for the three months ended June 30, 2015 and 2014. |
Stockholder's Equity (Stock Rep
Stockholder's Equity (Stock Repurchase Program) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 1 Months Ended | 3 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2015 | May. 28, 2015 | ||
Treasury Stock Transactions, Excluding Value of Shares Reissued [Abstract] | ||||
Stock repurchase program, authorized amount | $ 500 | |||
Purchase of treasury stock | 1,000 | 1,000 | [1] | |
Treasury stock acquired, average cost per share | $ 103.84 | |||
Stock repurchase program, remaining authorized repurchase amount | $ 396 | $ 396 | ||
[1] | Refer to “Stock Repurchase Program” section below for details. |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - Stock Option [Member] - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Equity Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average grant date fair value of stock options granted | $ 19.91 | $ 28.96 |
Shares available for grant | 2.3 | |
Unrecognized compensation expense related to non-vested stock options | $ 54.1 | |
Weighted-average vesting period of non-vested stock options (in years) | 1 year 11 months | |
Employee Stock Purchase Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average grant date fair value of stock options granted | $ 21.19 | $ 20.44 |
Shares available for grant | 1.1 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | ||
Stock-based compensation expense related to: | |||
Stock-based compensation expense | $ 13,650 | $ 14,830 | |
Tax benefit | (4,964) | (5,509) | |
Stock-based compensation expense, net of tax | 8,686 | 9,321 | |
Equity Incentive Plan [Member] | Stock Option [Member] | |||
Stock-based compensation expense related to: | |||
Stock-based compensation expense | [1] | 12,495 | 13,772 |
Employee Stock Purchase Plan [Member] | Stock Option [Member] | |||
Stock-based compensation expense related to: | |||
Stock-based compensation expense | $ 1,155 | $ 1,058 | |
[1] | Stock-based compensation expense related to stock options granted under the Company’s Equity Incentive Plan is highest during the Company’s fiscal first quarter ended June 30th relative to other quarters during the year. This is primarily due to a retirement-eligible vesting provision under the plan and the timing of the majority of the Company’s stock option awards each year during its fiscal first quarter. |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Stock Option Activity) (Details) - Jun. 30, 2015 - $ / shares shares in Thousands | Total |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Exercised | (163) |
Equity Incentive Plan [Member] | Stock Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding at March 31, 2015 | 4,974 |
Granted | 963 |
Exercised | (178) |
Forfeited | (26) |
Outstanding at June 30, 2015 | 5,733 |
Vested or expected to vest at June 30, 2015, Number Of Stock Options | 5,701 |
Exercisable at June 30, 2015, Number Of Stock Options | 3,492 |
Outstanding at March 31, 2015, Weighted-Average Exercise Price Per Share | $ 79.76 |
Granted, Weighted-Average Exercise Price Per Share | 103.62 |
Exercised, Weighted-Average Exercise Price Per Share | 45.74 |
Forfeited, Weighted-Average Exercise Price Per Share | 98.22 |
Outstanding at June 30, 2015, Weighted-Average Exercise Price Per Share | 84.73 |
Vested or expected to vest at June 30, 2015, Weighted-Average Exercise Price Per Share | 84.62 |
Exercisable at June 30, 2015, Weighted-Average Exercise Price Per Share | $ 73.15 |
Stock-Based Compensation (ESPP
Stock-Based Compensation (ESPP - Purchase Option Activity) (Details) - 3 months ended Jun. 30, 2015 - $ / shares shares in Thousands | Total |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Exercised | (163) |
Employee Stock Purchase Plan [Member] | Stock Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Outstanding at March 31, 2015 | 54 |
Granted | 218 |
Exercised | (54) |
Outstanding at June 30, 2015 | 218 |
Outstanding at March 31, 2015, Weighted-Average Exercise Price Per Share | $ 86.47 |
Granted, Weighted-Average Exercise Price Per Share | 89.33 |
Exercised, Weighted-Average Exercise Price Per Share | 89.33 |
Outstanding at June 30, 2015, Weighted-Average Exercise Price Per Share | $ 88.62 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive securities excluded from the computation of diluted earnings per share | 2,100 | 1,500 |
Weighted average basic shares outstanding | 75,206 | 74,272 |
Incremental shares from assumed exercises of stock options and options under the ESPP | 899 | 1,211 |
Weighted average diluted shares outstanding | 76,105 | 75,483 |
Summary by Business Segment (Fi
Summary by Business Segment (Financial Information by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | ||
Segment Reporting Information [Line Items] | |||
Net Sales | $ 1,349,710 | $ 1,313,587 | |
Cost of products sold (excluding depreciation) | 597,166 | 583,406 | |
Selling, distribution and administrative expenses | 513,776 | 494,713 | |
Depreciation | 78,075 | 72,635 | |
Amortization | 8,115 | 7,752 | |
Total costs and expenses | 1,197,132 | 1,158,506 | |
Operating Income | 152,578 | 155,081 | |
Gas and Rent [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 870,073 | 825,591 | |
Hardgoods [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 479,637 | 487,996 | |
Operating Segments [Member] | Distribution Business Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 1,195,908 | 1,183,612 | |
Cost of products sold (excluding depreciation) | 521,240 | 520,933 | |
Selling, distribution and administrative expenses | 464,809 | 449,639 | |
Depreciation | 71,020 | 66,462 | |
Amortization | 7,162 | 6,724 | |
Total costs and expenses | 1,064,231 | 1,043,758 | |
Operating Income | 131,677 | 139,854 | |
Operating Segments [Member] | Distribution Business Segment [Member] | Gas and Rent [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 717,642 | 696,565 | |
Operating Segments [Member] | Distribution Business Segment [Member] | Hardgoods [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 478,266 | 487,047 | |
Operating Segments [Member] | All Other Operations Business Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 161,401 | 137,043 | |
Cost of products sold (excluding depreciation) | 83,525 | 69,541 | |
Selling, distribution and administrative expenses | 48,967 | 45,074 | |
Depreciation | 7,055 | 6,173 | |
Amortization | 953 | 1,028 | |
Total costs and expenses | 140,500 | 121,816 | |
Operating Income | 20,901 | 15,227 | |
Operating Segments [Member] | All Other Operations Business Segment [Member] | Gas and Rent [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 160,027 | 136,092 | |
Operating Segments [Member] | All Other Operations Business Segment [Member] | Hardgoods [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 1,374 | 951 | |
Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | [1] | (7,599) | (7,068) |
Cost of products sold (excluding depreciation) | [1] | (7,599) | (7,068) |
Selling, distribution and administrative expenses | 0 | 0 | |
Depreciation | 0 | 0 | |
Amortization | 0 | 0 | |
Total costs and expenses | (7,599) | (7,068) | |
Operating Income | 0 | 0 | |
Eliminations [Member] | Gas and Rent [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | (7,596) | (7,066) | |
Eliminations [Member] | Hardgoods [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | $ (3) | $ (2) | |
[1] | Amounts in the “Eliminations” column represent the elimination of intercompany sales and associated gross profit on sales from the Company’s All Other Operations business segment to its Distribution business segment. |
Supplemental Cash Flow Inform56
Supplemental Cash Flow Information (Cash Paid For Interest And Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Supplemental Cash Flow Information [Abstract] | ||
Interest | $ 14,339 | $ 14,411 |
Income taxes, net of refunds | $ 2,038 | $ 7,370 |
Supplemental Cash Flow Inform57
Supplemental Cash Flow Information (Noncash Investing and Financing Activities) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | ||
Noncash or Part Noncash Acquisitions [Line Items] | |||
Net cash paid for acquisitions | $ (26,182) | $ (23,463) | |
Series of Individually Immaterial Business Acquisitions [Member] | |||
Noncash or Part Noncash Acquisitions [Line Items] | |||
Fair value of assets acquired | 31,656 | 35,761 | |
Net cash paid for acquisitions | [1] | (26,182) | (23,463) |
Stock issued for acquisition | [2] | 0 | (4,458) |
Liabilities assumed | $ 5,474 | $ 7,840 | |
[1] | Includes cash paid, net of cash acquired, for current year acquisitions as well as payments for the settlement of holdback liabilities associated with prior year acquisitions. | ||
[2] | Represents shares of Airgas, Inc. common stock issued in connection with a single prior year acquisition. |
Subsequent Event (Details)
Subsequent Event (Details) $ / shares in Units, $ in Thousands | Aug. 04, 2015$ / shares | Jul. 31, 2015USD ($)businesses_acquired | Jun. 30, 2015USD ($)businesses_acquiredbanks$ / shares | Jun. 30, 2014USD ($)$ / shares | Jul. 24, 2015USD ($)banks | |
Subsequent Event [Line Items] | ||||||
Dividends Declared per Common Share | $ / shares | $ 0.60 | $ 0.55 | ||||
Net cash paid for acquisitions | $ 26,182 | $ 23,463 | ||||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Dividends Declared per Common Share | $ / shares | $ 0.60 | |||||
Money market loans [Member] | Agreement expiring in July 2016 [Member] | Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Short-term debt, maximum borrowing amount | $ 35,000 | |||||
Trade receivables securitization [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Trade receivables securitization, maximum borrowing amount | $ 295,000 | |||||
Number of commercial banks participating in trade receivables securitization agreement | banks | 3 | |||||
Trade receivables securitization [Member] | Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Trade receivables securitization, maximum borrowing amount | $ 330,000 | |||||
Number of commercial banks participating in trade receivables securitization agreement | banks | 4 | |||||
Series of Individually Immaterial Business Acquisitions [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Number of businesses acquired | businesses_acquired | 5 | |||||
Historical annual sales of acquired businesses | $ 33,000 | |||||
Net cash paid for acquisitions | [1] | $ 26,182 | ||||
Series of Individually Immaterial Business Acquisitions [Member] | Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Number of businesses acquired | businesses_acquired | 4 | |||||
Historical annual sales of acquired businesses | $ 41,000 | |||||
Net cash paid for acquisitions | [1] | $ 70,000 | ||||
[1] | Includes cash paid, net of cash acquired, for current year acquisitions as well as payments for the settlement of holdback liabilities associated with prior year acquisitions. |