Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 31, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | AMPHENOL CORP /DE/ | |
Entity Central Index Key | 820,313 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 308,261,251 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Cash and cash equivalents | $ 1,575.6 | $ 968.9 |
Short-term investments | 22.1 | 360.7 |
Total cash, cash equivalents and short-term investments | 1,597.7 | 1,329.6 |
Accounts receivable, less allowance for doubtful accounts of $23.9 and $20.2, respectively | 1,163.3 | 1,123.7 |
Inventories | 887.7 | 865.6 |
Other current assets | 213.6 | 185.2 |
Total current assets | 3,862.3 | 3,504.1 |
Land and depreciable assets, less accumulated depreciation of $887.8 and $849.6, respectively | 611.7 | 590.7 |
Goodwill | 2,706.3 | 2,616.7 |
Intangibles and other long-term assets | 305.3 | 315.5 |
Total assets | 7,485.6 | 7,027 |
Current Liabilities: | ||
Accounts payable | 661.5 | 618.4 |
Accrued salaries, wages and employee benefits | 108.7 | 109.9 |
Accrued income taxes | 97.8 | 90.8 |
Accrued dividends | 43.1 | 38.7 |
Other accrued expenses | 169.8 | 186.2 |
Current portion of long-term debt | 0.4 | 1.6 |
Total current liabilities | 1,081.3 | 1,045.6 |
Long-term debt, less current portion | 2,853 | 2,672.3 |
Accrued pension benefit obligations and other long-term liabilities | 369.9 | 371.2 |
Equity: | ||
Common Stock | 0.3 | 0.3 |
Additional paid-in capital | 745.9 | 659.4 |
Retained earnings | 2,700.7 | 2,453.5 |
Accumulated other comprehensive loss | (303.6) | (205.8) |
Total shareholders' equity attributable to Amphenol Corporation | 3,143.3 | 2,907.4 |
Noncontrolling interests | 38.1 | 30.5 |
Total equity | 3,181.4 | 2,937.9 |
Total Liabilities and Equity | $ 7,485.6 | $ 7,027 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable, allowance for doubtful accounts | $ 23.9 | $ 20.2 |
Land and depreciable assets, accumulated depreciation | $ 887.8 | $ 849.6 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||
Net sales | $ 1,459.6 | $ 1,358.7 | $ 4,138.2 | $ 3,919 |
Cost of sales | 995.6 | 927.1 | 2,817.1 | 2,681.7 |
Gross profit | 464 | 431.6 | 1,321.1 | 1,237.3 |
Acquisition-related expenses | 2.5 | 5.7 | 4.6 | |
Selling, general and administrative expense | 169.2 | 161.3 | 499.7 | 476.9 |
Operating income | 294.8 | 267.8 | 815.7 | 755.8 |
Interest expense | (17) | (21.1) | (51.1) | (60.2) |
Other income, net | 4.2 | 4.8 | 12.5 | 13 |
Income before income taxes | 282 | 251.5 | 777.1 | 708.6 |
Provision for income taxes | (74.7) | (67.3) | (207.4) | (188.2) |
Net income | 207.3 | 184.2 | 569.7 | 520.4 |
Less: Net income attributable to noncontrolling interests | (2.8) | (2) | (6.4) | (4.8) |
Net income attributable to Amphenol Corporation | $ 204.5 | $ 182.2 | $ 563.3 | $ 515.6 |
Net income per common share - Basic (in dollars per share) | $ 0.66 | $ 0.58 | $ 1.82 | $ 1.64 |
Weighted average common shares outstanding - Basic (in shares) | 308,853,642 | 313,284,242 | 309,262,335 | 314,183,699 |
Net income per common share - Diluted (in dollars per share) | $ 0.65 | $ 0.57 | $ 1.78 | $ 1.60 |
Weighted average common shares outstanding - Diluted (in shares) | 315,886,596 | 320,636,405 | 316,909,091 | 321,518,036 |
Dividends declared per common share (in dollars per share) | $ 0.140 | $ 0.125 | $ 0.390 | $ 0.325 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income | $ 207.3 | $ 184.2 | $ 569.7 | $ 520.4 |
Total other comprehensive loss, net of tax : | ||||
Foreign currency translation adjustments | (52.8) | (43.7) | (109.5) | (41.8) |
Unrealized gain (loss) on cash flow hedges | 0.1 | (1.2) | 0.3 | (0.6) |
Defined benefit plan adjustment, net of tax of $2.5 and $5.8, respectively | 4.6 | 10.8 | ||
Total other comprehensive loss, net of tax | (48.1) | (44.9) | (98.4) | (42.4) |
Total comprehensive income | 159.2 | 139.3 | 471.3 | 478 |
Less: Comprehensive income attributable to noncontrolling interests | (2.2) | (2.1) | (5.8) | (4.5) |
Comprehensive income attributable to Amphenol Corporation | $ 157 | $ 137.2 | $ 465.5 | $ 473.5 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2015 | Sep. 30, 2015 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Defined benefit plan adjustment, tax | $ 2.5 | $ 5.8 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash from operating activities: | ||
Net income | $ 569.7 | $ 520.4 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 128.1 | 118 |
Stock-based compensation expense | 32.1 | 29.4 |
Excess tax benefits from stock-based compensation payment arrangements | (9.4) | (29.6) |
Net change in components of working capital | (7) | (24.3) |
Net change in other long-term assets and liabilities | (5.3) | (6.5) |
Net cash provided by operating activities | 708.2 | 607.4 |
Cash from investing activities: | ||
Purchases of land and depreciable assets | (130.8) | (162.7) |
Proceeds from disposals of land and depreciable assets | 6.7 | 2.2 |
Purchases of short-term investments | (121.9) | (478.8) |
Sales and maturities of short-term investments | 459.5 | 410.4 |
Acquisitions, net of cash acquired | (199.8) | (468) |
Net cash provided by (used in) investing activities | 13.7 | (696.9) |
Cash from financing activities: | ||
Proceeds from issuance of senior notes | 1,498.1 | |
Long-term borrowings under credit facilities | 125 | 563.5 |
Repayments of long-term debt | (211.8) | (1,570.7) |
Borrowings under commercial paper program, net | 266.9 | 0 |
Payments of costs related to debt financing | (10.7) | |
Proceeds from exercise of stock options | 45.8 | 88.8 |
Excess tax benefits from stock-based compensation payment arrangements | 9.4 | 29.6 |
Distributions to shareholders of noncontrolling interests | (6.1) | (3.6) |
Purchase and retirement of treasury stock | (195.6) | (400.8) |
Dividend payments | (116.1) | (101.9) |
Net cash (used in) provided by financing activities | (82.5) | 92.3 |
Effect of exchange rate changes on cash and cash equivalents | (32.7) | (16.6) |
Net change in cash and cash equivalents | 606.7 | (13.8) |
Cash and cash equivalents balance, beginning of period | 968.9 | 886.8 |
Cash and cash equivalents balance, end of period | 1,575.6 | 873 |
Cash paid for: | ||
Interest | 62.1 | 51.7 |
Income taxes | $ 182.9 | $ 160.9 |
Basis of Presentation and Princ
Basis of Presentation and Principles of Consolidation | 9 Months Ended |
Sep. 30, 2015 | |
Basis of Presentation and Principles of Consolidation | |
Basis of Presentation and Principles of Consolidation | Note 1—Basis of Presentation and Principles of Consolidation The condensed consolidated balance sheets as of September 30, 2015 and December 31, 2014, the related condensed consolidated statements of income for the three and nine months ended September 30, 2015 and 2014, the condensed consolidated statements of comprehensive income for the three and nine months ended September 30, 2015 and 2014 and the condensed consolidated statements of cash flow for the nine months ended September 30, 2015 and 2014 include the accounts of Amphenol Corporation and its subsidiaries (the “Company”). All material intercompany balances and transactions have been eliminated in consolidation. The condensed consolidated financial statements included herein are unaudited. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation in conformity with accounting principles generally accepted in the United States of America have been included. The results of operations for the three and nine months ended September 30, 2015 are not necessarily indicative of the results to be expected for the full year. These condensed consolidated financial statements and the related notes should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014 (the “2014 Annual Report”). During the second quarter of 2015, the Company changed the reporting for borrowings and repayments related to the Company’s commercial paper program from a gross basis to a net basis in the accompanying Condensed Consolidated Statements of Cash Flow, to the extent such borrowings under this program have maturities that are three months or less. There were no borrowings or repayments under this program during the nine months ended September 30, 2014. |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2015 | |
New Accounting Pronouncements | |
New Accounting Pronouncements | Note 2—New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which stipulates that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for such goods or services. To achieve this core principle, an entity should apply the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract(s); (3) determine the transaction price(s); (4) allocate the transaction price(s) to the performance obligations in the contract(s); and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The guidance also requires advanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. ASU 2014-09 was originally effective for annual reporting periods beginning after December 15, 2016, with early adoption not permitted. In August 2015, the FASB issued Accounting Standards Update No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date (“ASU 2015-14”), which defers the effective date of FASB’s revenue standard under ASU 2014-09 by one year for all entities and permits early adoption on a limited basis. As a result of ASU 2015-14, the guidance under ASU 2014-09 shall apply for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that period. Early adoption is permitted as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within those annual periods. The Company is currently evaluating ASU 2014-09 and does not anticipate a material impact on its consolidated financial statements. In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”), amending FASB Accounting Standards Subtopic 205-40 to provide guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Specifically, the amendments (1) provide a definition of the term “substantial doubt,” (2) require an evaluation every reporting period, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that financial statements are issued. ASU 2014-15 is effective for fiscal years ending after December 15, 2016, and for annual periods and interim periods thereafter. The Company is currently evaluating ASU 2014-15 and does not anticipate a material impact on its consolidated financial statements. In April 2015, the FASB issued Accounting Standards Update No. 2015-03, Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”), which specifies that debt issuance costs related to a note shall be reported on the balance sheet as a direct deduction from the face amount of that note and that amortization of debt issuance costs shall be reported as interest expense. In August 2015, the FASB issued Accounting Standards Update No. 2015-15 , Interest — Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements — Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting ( “ASU 2015-15” ), which further clarifies ASU 2015-03 as it relates to presentation and subsequent measurement of debt issuance costs related to line-of-credit arrangements. ASU 2015-03 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 and should be applied retrospectively. Early adoption of ASU 2015-03 is permitted. The Company has evaluated ASU 2015-03 and it will not have a material impact on its consolidated financial statements. In July 2015, the FASB issued Accounting Standards Update No. 2015-11, Simplifying the Measurement of Inventory (“ASU 2015-11”), which requires inventory to be measured at the lower of cost and net realizable value, thereby simplifying the current guidance of measuring inventory at the lower of cost or market. ASU 2015-11 is effective prospectively for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The Company is currently evaluating ASU 2015-11 and does not believe this ASU will have a material impact on its consolidated financial statements. In September 2015, the FASB issued Accounting Standards Update No. 2015-16, Simplifying the Accounting for Measurement-Period Adjustments (“ASU 2015-16”), which eliminates the requirement to restate prior period financial statements for measurement period adjustments. Rather, ASU 2015-16 requires that the cumulative impact of a measurement period adjustment (including the impact on prior periods) be recognized in the reporting period in which the adjustment is identified. ASU 2015-16 is effective for interim and annual periods beginning after December 15, 2015, with early adoption being permitted. T he Company elected to early adopt ASU 2015-16 in the third quarter of 2015, which did not have a material impact on its consolidated financial statements. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2015 | |
Inventories | |
Inventories | Note 3—Inventories Inventories consist of: September 30, 2015 December 31, 2014 Raw materials and supplies $ $ Work in process Finished goods $ $ |
Reportable Business Segments
Reportable Business Segments | 9 Months Ended |
Sep. 30, 2015 | |
Reportable Business Segments | |
Reportable Business Segments | Note 4—Reportable Business Segments The Company has two reportable business segments: (i) Interconnect Products and Assemblies and (ii) Cable Products and Solutions. The Company aggregates its operating segments into reportable segments based upon similar economic characteristics and business groupings of products, services and customers. The Interconnect Product and Assemblies segment primarily designs, manufactures and markets a broad range of connector and connector systems, value-added products and other products, including antennas and sensors, used in a broad range of applications in a diverse set of end markets. The Cable Products and Solutions segment primarily designs, manufactures and markets cable, value-added products and components for use primarily in the broadband communications and information technology markets as well as certain applications in other markets. The accounting policies of the segments are the same as those for the Company as a whole and are described in Note 1 of the notes to the consolidated financial statements in the Company’s 2014 Annual Report. The Company evaluates the performance of business units on, among other things, profit or loss from operations before interest, headquarters’ expense allocations, stock-based compensation expense, income taxes, amortization related to certain intangible assets and nonrecurring gains and losses. The segment results for the three months ended September 30, 2015 and 2014 are as follows: Interconnect Products and Assemblies Cable Products and Solutions Total Three months ended September 30, 2015 2014 2015 2014 2015 2014 Net sales: External $ $ $ $ $ $ Intersegment Segment operating income The segment results for the nine months ended September 30, 2015 and 2014 are as follows: Interconnect Products and Assemblies Cable Products and Solutions Total Nine months ended September 30, 2015 2014 2015 2014 2015 2014 Net sales: External $ $ $ $ $ $ Intersegment Segment operating income A reconciliation of segment operating income to consolidated income before income taxes for the three and nine months ended September 30, 2015 and 2014 is summarized as follows: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Segment operating income $ $ $ $ Interest expense ) ) ) ) Interest income Stock-based compensation expense ) ) ) ) Acquisition-related expenses — ) ) ) Other costs, net ) ) ) ) Income before income taxes $ $ $ $ |
Changes in Equity and Noncontro
Changes in Equity and Noncontrolling Interests | 9 Months Ended |
Sep. 30, 2015 | |
Changes in Equity and Noncontrolling Interests | |
Changes in Equity and Noncontrolling Interests | Note 5—Changes in Equity and Noncontrolling Interests Net income attributable to noncontrolling interests is classified below net income. Earnings per share is determined after the impact of the noncontrolling interests’ share in net income of the Company. In addition, the equity attributable to noncontrolling interests is presented as a separate caption within equity. A rollforward of consolidated changes in equity for the nine months ended September 30, 2015 is as follows: Amphenol Corporation Shareholders Common Stock Accum. Other Shares (in millions) Amount Additional Paid- In Capital Retained Earnings Comprehensive Loss Treasury Stock Noncontrolling Interests Total Equity Balance as of December 31, 2014 $ $ $ $ ) $ — $ $ Net income Other comprehensive income (loss) ) ) ) Distributions to shareholders of noncontrolling interests ) ) Acquisition resulting in noncontrolling interest Purchase of treasury stock ) ) Retirement of treasury stock ) ) — Stock options exercised, including tax benefit Dividends declared ) ) Stock-based compensation expense Balance as of September 30, 2015 $ $ $ $ ) $ — $ $ A rollforward of consolidated changes in equity for the nine months ended September 30, 2014 is as follows: Amphenol Corporation Shareholders Common Stock Accum. Other Shares (in millions) Amount Additional Paid- In Capital Retained Earnings Comprehensive Loss Treasury Stock Noncontrolling Interests Total Equity Balance as of December 31, 2013 $ $ $ $ ) $ — $ $ Net income Other comprehensive income (loss) ) ) ) Distributions to shareholders of noncontrolling interests ) ) Purchase of treasury stock ) ) Retirement of treasury stock ) ) — Stock options exercised, including tax benefit Dividends declared ) ) Stock-based compensation expense Balance as of September 30, 2014 $ $ $ $ ) $ — $ $ |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share | |
Earnings Per Share | Note 6—Earnings Per Share Basic earnings per share (“EPS”) is computed by dividing net income attributable to Amphenol Corporation by the weighted-average number of common shares outstanding. Diluted EPS is computed by dividing net income attributable to Amphenol Corporation by the weighted-average number of common shares and dilutive common shares outstanding, which relates to stock options. A reconciliation of the basic weighted average common shares outstanding to diluted weighted average common shares outstanding for the three and nine months ended September 30, 2015 and 2014 is as follows: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Net income attributable to Amphenol Corporation shareholders $ $ $ $ Basic weighted average common shares outstanding Effect of dilutive stock options Diluted weighted average common shares outstanding Earnings per share attributable to Amphenol Corporation shareholders: Basic $ $ $ $ Diluted $ $ $ $ Excluded from the computations above were anti-dilutive stock options of 9,388,150 and 6,169,900 for the three months ended September 30, 2015 and 2014, respectively, and 5,033,840 and 4,695,200 for the nine months ended September 30, 2015 and 2014, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 7—Commitments and Contingencies On July 17, 2015, the Company entered into a sale and purchase agreement, agreeing to acquire all of the issued share capital of FCI Asia Pte Ltd (“FCI”) for an aggregate purchase price of $1,275 in cash, subject to a closing adjustment. The acquisition is expected to close by the end of 2015, subject to certain regulatory consents and approvals. The Company expects to finance the acquisition through a combination of cash and debt. FCI is headquartered in Singapore and is a global leader in interconnect solutions for the telecom, datacom, wireless communications and industrial markets. The Company has been named as defendant in several legal actions in which various amounts are claimed arising from normal business activities. Although the amount of any ultimate liability with respect to such matters cannot be precisely determined, in the opinion of management, such matters are not expected to have a material effect on the Company’s financial condition, results of operations or cash flows. Certain operations of the Company are subject to environmental laws and regulations which govern the discharge of pollutants into the air and water, as well as the handling and disposal of solid and hazardous wastes. The Company believes that its operations are currently in substantial compliance with applicable environmental laws and regulations and that the costs of continuing compliance will not have a material effect on the Company’s financial condition, results of operations or cash flows. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
Stock-Based Compensation | |
Stock-Based Compensation | Note 8—Stock-Based Compensation Stock Options In 2009, the Company adopted the 2009 Stock Purchase and Option Plan for Key Employees of Amphenol and its Subsidiaries (the “2009 Employee Option Plan”). The Company also continues to maintain the 2000 Stock Purchase and Option Plan for Key Employees of Amphenol and Subsidiaries (the “2000 Employee Option Plan”). No additional stock options can be granted under the 2000 Employee Option Plan. The 2009 Employee Option Plan authorizes the granting of additional stock options by a committee of the Company’s Board of Directors. The number of shares of the Company’s Class A Common Stock (“Common Stock”) reserved for issuance thereunder is 58,000,000 shares. As of September 30, 2015, there were 18,820,680 shares of Common Stock available for the granting of additional stock options under the 2009 Employee Option Plan. Options granted under the 2000 Employee Option Plan are fully vested and are generally exercisable over a period of ten years from the date of grant and options granted under the 2009 Employee Option Plan generally vest ratably over a period of five years from the date of grant and are generally exercisable over a period of ten years from the date of grant. In 2004, the Company adopted the 2004 Stock Option Plan for Directors of Amphenol Corporation (the “2004 Directors Option Plan”). The 2004 Directors Option Plan is administered by the Company’s Board of Directors. As of September 30, 2015, there were 140,000 shares of Common Stock available for the granting of additional stock options under the 2004 Directors Option Plan, although no additional stock options are expected to be granted under this plan. Options were last granted under the 2004 Directors Option Plan in May 2011. Options granted under the 2004 Directors Option Plan are fully vested and are generally exercisable over a period of ten years from the date of grant. Stock option activity for the three and nine months ended September 30, 2015 was as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Options outstanding at January 1, 2015 $ $ Options granted Options exercised ) Options forfeited ) Options outstanding at March 31, 2015 Options granted Options exercised ) Options forfeited ) Options outstanding at June 30, 2015 Options granted Options exercised ) Options forfeited ) Options outstanding at September 30, 2015 $ $ Vested and non-vested options expected to vest at September 30, 2015 $ $ Exercisable options at September 30, 2015 $ $ A summary of the status of the Company’s non-vested options as of September 30, 2015 and changes during the three and nine months then ended is as follows: Options Weighted Average Fair Value at Grant Date Non-vested options at January 1, 2015 $ Options granted Options vested ) Options forfeited ) Non-vested options at March 31, 2015 Options granted Options vested ) Options forfeited ) Non-vested options at June 30, 2015 Options granted Options vested ) Options forfeited ) Non-vested options at September 30, 2015 $ During the three and nine months ended September 30, 2015 and 2014, the following activity occurred under the Company’s option plans: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Total intrinsic value of stock options exercised $ $ $ $ Total fair value of stock options vested As of September 30, 2015, the total compensation cost related to non-vested options not yet recognized is approximately $115.1 with a weighted average expected amortization period of 3.55 years. Restricted Shares In 2012, the Company adopted the 2012 Restricted Stock Plan for Directors of Amphenol Corporation (the “2012 Directors Restricted Stock Plan”). The 2012 Directors Restricted Stock Plan is administered by the Company’s Board of Directors. As of September 30, 2015, the number of restricted shares available for grant under the 2012 Directors Restricted Stock Plan was 153,974. Restricted shares granted under the 2012 Directors Restricted Stock Plan generally vest on the first anniversary of the grant date. Grants under the 2012 Directors Restricted Stock Plan entitle the holder to receive shares of Common Stock without payment. Restricted share activity for the three and nine months ended September 30, 2015 was as follows: Restricted Shares Fair Value at Grant Date Weighted Average Remaining Amortization Term (in years) Restricted shares outstanding at January 1, 2015 $ Restricted shares granted Restricted shares outstanding at March 31, 2015 Shares vested and issued ) Restricted shares granted Restricted shares outstanding at June 30, 2015 Restricted shares outstanding at September 30, 2015 As of September 30, 2015, the total compensation cost related to non-vested restricted shares not yet recognized was approximately $0.6 with a weighted average expected amortization period of 0.64 years. The grant-date fair value of each option grant under the 2000 Employee Option Plan, the 2009 Employee Option Plan and the 2004 Directors Option Plan is estimated using the Black-Scholes option pricing model. The grant-date fair value of each restricted share grant is determined based on the closing share price of the Common Stock on the date of the grant. The fair value is then amortized on a straight-line basis over the requisite service period of the awards, which is generally the vesting period. Use of a valuation model for option grants requires management to make certain assumptions with respect to selected model inputs. Expected share price volatility is calculated based on the historical volatility of the Common Stock and implied volatility derived from related exchange traded options. The average expected life is based on the contractual term of the option and expected exercise and historical post-vesting termination experience. The risk-free interest rate is based on U.S. Treasury zero-coupon issues with a remaining term equal to the expected life assumed at the date of grant. The expected annual dividend per share is based on the Company’s dividend rate. Stock-based compensation expense includes the estimated effects of forfeitures, which are adjusted over the requisite service period to the extent actual forfeitures differ or are expected to differ from such estimates. Changes in estimated forfeitures are recognized in the period of change and impact the amount of expense to be recognized in future periods. For the three months ended September 30, 2015, the Company’s income before income taxes and net income were reduced for stock-based compensation expense by $11.8 and $8.8, respectively, and these reductions were $32.1 and $23.9, respectively, for the nine months ended September 30, 2015. For the three months ended September 30, 2014, the Company’s income before income taxes and net income were reduced for stock-based compensation expense by $10.1 and $7.5, respectively, and those reductions were $29.4 and $21.6, respectively, for the nine months ended September 30, 2014. The expense incurred for stock-based compensation is included in selling, general and administrative expense in the accompanying Condensed Consolidated Statements of Income. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2015 | |
Shareholders' Equity | |
Shareholders' Equity | Note 9—Shareholders’ Equity Effective May 20, 2015, the Company’s stockholders approved an amendment to the Company’s certificate of incorporation to increase the number of shares of Common Stock which the Company is authorized to issue by 500 million to 1 billion. In January 2015, the Board of Directors authorized a stock repurchase program under which the Company may repurchase up to 10 million shares of Common Stock during the two year period ending January 20, 2017 (the “2015 Stock Repurchase Program”). The price and timing of any such purchases under the 2015 Stock Repurchase Program will depend on factors such as levels of cash generation from operations, the volume of stock option exercises by employees, cash requirements for acquisitions, dividends, economic and market conditions and stock price. During the nine months ended September 30, 2015, the Company repurchased 3.5 million shares of Common Stock for $195.6. These treasury shares have been retired by the Company and common stock and retained earnings were reduced accordingly. The Company has not repurchased any additional shares of Common Stock through October 31, 2015. At October 31, 2015, approximately 6.5 million additional shares of Common Stock may be repurchased under the 2015 Stock Repurchase Program. Contingent upon declaration by the Board of Directors, the Company generally pays a quarterly dividend on shares of Common Stock. In the third quarter of 2014, the Board of Directors approved an increase in the quarterly dividend rate from $0.10 to $0.125 per share effective with the third quarter 2014 dividend and in July 2015, approved a further increase in the quarterly dividend rate from $0.125 to $0.14 per share effective with the third quarter 2015 dividend. For the three and nine months ended September 30, 2015, the Company paid dividends of $38.6 and $116.1, respectively, and declared dividends of $43.2 and $120.5, respectively. For the three and nine months ended September 30, 2014, the Company paid dividends in the amount of $70.5 and $101.9, respectively, and declared dividends in the amount of $39.1 and $101.9, respectively. |
Benefit Plans and Other Postret
Benefit Plans and Other Postretirement Benefits | 9 Months Ended |
Sep. 30, 2015 | |
Benefit Plans and Other Postretirement Benefits | |
Benefit Plans and Other Postretirement Benefits | Note 10—Benefit Plans and Other Postretirement Benefits The Company and certain of its domestic subsidiaries have defined benefit pension plans (the “U.S. Plans”), which cover certain U.S. employees and which represent the majority of the plan assets and benefit obligations of the aggregate defined benefit plans of the Company. The U.S. Plans’ benefits are generally based on years of service and compensation and are generally noncontributory. Certain U.S. employees not covered by the U.S. Plans are covered by defined contribution plans. Certain foreign subsidiaries have defined benefit plans covering their employees (the “International Plans” and, together with the U.S. Plans, the “Plans”). The following is a summary, based on the most recent actuarial valuations of the Company’s net cost for pension benefits, of the Plans and other postretirement benefits for the three and nine months ended September 30, 2015 and 2014. Pension Benefits Other Postretirement Benefits Three months ended September 30, 2015 2014 2015 2014 Service cost $ $ $ — $ — Interest cost Expected return on plan assets ) ) — — Amortization of prior service cost — — Amortization of net actuarial losses Net pension expense $ $ $ $ Pension Benefits Other Postretirement Benefits Nine months ended September 30, 2015 2014 2015 2014 Service cost $ $ $ $ Interest cost Expected return on plan assets ) ) — — Amortization of transition obligation ) ) — — Amortization of prior service cost — — Amortization of net actuarial losses Net pension expense $ $ $ $ For the three and nine months ended September 30, 2015, the Company made cash contributions to the U.S. Plans of approximately $16.0, and estimates that, based on current actuarial calculations, it will make aggregate cash contributions to the Plans in 2015 of approximately $22.0, the majority of which will be to the U.S. Plans. The timing and amount of cash contributions in subsequent years will depend on a number of factors, including the investment performance of the Plan assets. The Company offers various defined contribution plans for certain U.S. and foreign employees. Participation in these plans is based on certain eligibility requirements. The Company matches the majority of employee contributions to U.S. defined contribution plans with cash contributions up to a maximum of 5% of eligible compensation. During the nine months ended September 30, 2015 and 2014, the total matching contributions to these U.S. defined contribution plans were approximately $3.2 and $2.7, respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Other Intangible Assets | |
Goodwill and Other Intangible Assets | Note 11 — Goodwill and Other Intangible Assets As of September 30, 2015, the Company has goodwill totaling $2,706.3, of which $2,582.6 is related to the Interconnect Products and Assemblies segment with the remainder related to the Cable Products and Solutions segment. For the nine months ended September 30, 2015, goodwill increased by $89.6, which related to changes in the Interconnect Products and Assemblies segment, primarily as a result of three acquisitions during the first half of 2015, partially offset by currency translation of $63.7. The Company is in the process of completing its analysis of fair value of the assets acquired related to certain acquisitions and anticipates that the final assessment of values of those assets will not differ materially from the preliminary assessment. The Company changed its annual assessment date for goodwill impairment to be as of each July 1, rather than June 30, which had no impact on the outcome of the assessment. As described in Note 1 of the notes to the consolidated financial statements in the Company’s 2014 Annual Report, the Company performs an annual evaluation for the impairment of goodwill for the Company’s two reportable business segments. In 2014, the Company utilized the option to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. Such assessment concluded that a quantitative approach was not necessary. For 2015, the Company exercised its option to bypass the qualitative assessment, and in the third quarter of 2015, the Company performed the first step of the two-step quantitative goodwill impairment assessment for each reportable business segment. As part of the quantitative assessment, the Company estimated the fair value of each of its reportable business segments using a market approach. The Company believes this approach provides the best indicator of fair value, by utilizing market prices and other relevant metrics for comparable publicly traded companies with similar operating and investment characteristics and recent transactions of similar businesses within the industry. Significant estimates and assumptions were used in this assessment including projected revenue and operating income growth rates, profitability projections, determination of comparable publicly traded companies, and revenue and earnings multiples derived from comparable publicly traded companies and from recent acquisitions within our industry. As part of our quantitative approach, the Company evaluated whether there are reasonably likely changes to management’s estimates and assumptions that would have a material impact on the results of the goodwill impairment assessment. As of July 1, 2015, the fair value of each of the Company’s reportable business segments was substantially in excess of their respective carrying amounts, and therefore, no goodwill impairment resulted from the assessment. Other than goodwill and indefinite-lived trade name intangible assets with a value of approximately $52.3, the Company’s intangible assets are subject to amortization. A summary of the Company’s amortizable intangible assets as of September 30, 2015 and December 31, 2014 is as follows: September 30, 2015 December 31, 2014 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Customer relationships $ $ $ $ Proprietary technology License agreements Backlog and other Total $ $ $ $ Customer relationships, proprietary technology, license agreements, and backlog and other amortizable intangible assets have weighted average useful lives of approximately 10 years, 14 years, 8 years and 2 years, respectively, for an aggregate weighted average useful life of approximately 10 years at September 30, 2015. Intangible assets are included in Intangibles and other long-term assets in the accompanying Condensed Consolidated Balance Sheets. The amortization expense for the three months ended September 30, 2015 and 2014 was approximately $8.9 and $6.2, respectively. The amortization expense for the nine months ended September 30, 2015 and 2014 was approximately $25.6 and $20.7, respectively. As of September 30, 2015, amortization expense estimated for the remainder of 2015 is approximately $8.9 and for each of the next five fiscal years is approximately $35.3 in 2016, $34.9 in 2017, $30.8 in 2018, $26.6 in 2019 and $23.4 in 2020. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2015 | |
Debt | |
Debt | Note 12—Debt The Company’s debt consists of the following: September 30, 2015 December 31, 2014 Carrying Amount Approximate Fair Value Carrying Amount Approximate Fair Value $1,500.0 Revolving Credit Facility $ — $ — $ — $ — $1,500.0 Commercial Paper Program $200.0 Credit Agreement N/A N/A — — 1.55% Senior Notes due September 2017 2.55% Senior Notes due January 2019 3.125% Senior Notes due September 2021 4.00% Senior Notes due February 2022 Notes payable to foreign banks and other debt Total debt Less current portion ) ) ) ) Total long-term debt $ $ $ $ Credit Facilities and Commercial Paper Program The Company has a $1,500.0 unsecured credit facility (the “Revolving Credit Facility”) with a maturity date of July 2018 which gives the Company the ability to borrow at a spread over LIBOR. Additionally, the Company had a $200.0 unsecured credit facility which expired in the second quarter of 2015 and was not renewed. The Company has a commercial paper program (the “Program”) pursuant to which it issues short-term unsecured commercial paper notes (“Commercial Paper”) in one or more private placements. Amounts available under the Program are borrowed, repaid and re-borrowed from time to time. The maturities of the Commercial Paper vary, but may not exceed 397 days from the date of issue. The Commercial Paper is sold under customary terms in the commercial paper market and may be issued at a discount from par, or, alternatively, may be sold at par and bear varying interest rates on a fixed or floating basis. The Program was rated A-2 by Standard & Poor’s and P-2 by Moody’s and is backstopped by the Revolving Credit Facility. The maximum aggregate principal amount of the Commercial Paper outstanding under the Program at any time is $1,500.0. The Commercial Paper is classified as long-term debt in the accompanying Condensed Consolidated Balance Sheets since the Company has the intent and ability to refinance the Commercial Paper on a long-term basis using the Revolving Credit Facility. The carrying value of Commercial Paper borrowings approximated their fair value given that the Commercial Paper is actively traded. As such, the Commercial Paper is classified as Level 1 in the fair value hierarchy (Note 13). The average interest rate on the Commercial Paper as of September 30, 2015 was 0.48%. Senior Notes All of the Company’s outstanding senior notes, which are listed in the table above, are unsecured and rank equally in right of payment with the Company’s other unsecured senior indebtedness. Interest on each series of the senior notes is payable semiannually. The Company may, at its option, redeem some or all of any series senior notes at any time by paying 100% of the principal amount, plus accrued and unpaid interest, if any, to the date of repurchase, and if redeemed prior to the date of maturity, a make-whole premium. The fair value of the senior notes is based on recent bid prices in an active market and is therefore classified as Level 1 in the fair value hierarchy (Note 13). |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Measurements | |
Fair Value Measurements | Note 13—Fair Value Measurements The Company follows the framework within the Fair Value Measurements and Disclosures topic of the Accounting Standards Codification, which requires fair value to be determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. These requirements establish market or observable inputs as the preferred source of values. Assumptions based on hypothetical transactions are used in the absence of market inputs. The Company does not have any non-financial instruments accounted for at fair value on a recurring basis. The valuation techniques required are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. These two types of inputs create the following fair value hierarchy: Level 1 Quoted prices for identical instruments in active markets. Level 2 Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3 Significant inputs to the valuation model are unobservable. The Company believes that the assets or liabilities subject to such standards with fair value disclosure requirements are short-term investments and derivative instruments. Substantially all of the Company’s short-term investments consist of certificates of deposit with original maturities of twelve months or less and as such, are considered as Level 1 in the fair value hierarchy as they are traded in active markets which have identical assets. The carrying amounts of these instruments, the majority of which are in non-U.S. bank accounts, approximate their fair value. The Company’s derivative instruments represent foreign exchange rate forward contracts, which are valued using bank quotations based on market observable inputs such as forward and spot rates and are therefore classified as Level 2 in the fair value hierarchy. The impact of the credit risk related to these financial assets is immaterial. The fair values of the Company’s financial and non-financial assets and liabilities subject to such standards at September 30, 2015 and December 31, 2014 are as follows: Fair Value Measurements at September 30, 2015 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Short-term investments $ $ $ — $ — Forward contracts — — Total $ $ $ $ — Fair Value Measurements at December 31, 2014 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Short-term investments $ $ $ — $ — Forward contracts — — Total $ $ $ $ — The Company does not have any significant financial or non-financial assets and liabilities that are measured at fair value on a non-recurring basis. The amount recognized in accumulated other comprehensive income (loss) associated with foreign exchange rate forward contracts and the amount reclassified from accumulated other comprehensive income (loss) to foreign exchange gain (loss) in the accompanying Condensed Consolidated Statements of Income during the nine month periods ended September 30, 2015 and 2014 was not material. The fair value of the forward contracts are recorded within other current assets in the accompanying Condensed Consolidated Balance Sheets. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Taxes | |
Income Taxes | Note 14—Income Taxes The provision for income taxes for the third quarter and the first nine months of 2015 was at an effective rate of 26.5% and 26.7%, respectively. Excluding the net impact of acquisition-related expenses, the effective tax rate in both the third quarter and the first nine months of 2015 was 26.5%. The provision for income taxes for the third quarter and the first nine months of 2014 was at an effective rate of 26.8% and 26.6%, respectively. Excluding the net impact of acquisition-related expenses, the effective tax rate in both the third quarter and the first nine months of 2014 was 26.5%. The Company is present in the U.S. and numerous foreign taxable jurisdictions, and at any point in time has numerous audits underway at various stages of completion. With few exceptions, the Company is subject to income tax examinations by tax authorities for the years 2011 and after. The Company is generally not able to precisely estimate the ultimate settlement amounts or timing until the close of an audit. The Company evaluates its tax positions and establishes liabilities for uncertain tax positions that may be challenged by local authorities and may not be fully sustained, despite the Company’s belief that the underlying tax positions are fully supportable. As of September 30, 2015, the amount of the liability for unrecognized tax benefits, which if recognized would impact the effective tax rate, was approximately $19.8, which is included in accrued pension benefit obligations and other long-term liabilities in the accompanying Condensed Consolidated Balance Sheets. Unrecognized tax benefits are reviewed on an ongoing basis and are adjusted for changing facts and circumstances, including progress of tax audits and the closing of statutes of limitation. Based on information currently available, management anticipates that over the next twelve month period, audit activity could be completed and statutes of limitation may close relating to existing unrecognized tax benefits of approximately $3.7. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Inventories | |
Schedule of Inventories | September 30, 2015 December 31, 2014 Raw materials and supplies $ $ Work in process Finished goods $ $ |
Reportable Business Segments (T
Reportable Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Reportable Business Segments | |
Schedule of segment reporting information by segment | The segment results for the three months ended September 30, 2015 and 2014 are as follows: Interconnect Products and Assemblies Cable Products and Solutions Total Three months ended September 30, 2015 2014 2015 2014 2015 2014 Net sales: External $ $ $ $ $ $ Intersegment Segment operating income The segment results for the nine months ended September 30, 2015 and 2014 are as follows: Interconnect Products and Assemblies Cable Products and Solutions Total Nine months ended September 30, 2015 2014 2015 2014 2015 2014 Net sales: External $ $ $ $ $ $ Intersegment Segment operating income |
Schedule of the reconciliation of segment operating income to consolidated income before income taxes | Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Segment operating income $ $ $ $ Interest expense ) ) ) ) Interest income Stock-based compensation expense ) ) ) ) Acquisition-related expenses — ) ) ) Other costs, net ) ) ) ) Income before income taxes $ $ $ $ |
Changes in Equity and Noncont24
Changes in Equity and Noncontrolling Interests (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Changes in Equity and Noncontrolling Interests | |
Rollforward of consolidated changes in equity | A rollforward of consolidated changes in equity for the nine months ended September 30, 2015 is as follows: Amphenol Corporation Shareholders Common Stock Accum. Other Shares (in millions) Amount Additional Paid- In Capital Retained Earnings Comprehensive Loss Treasury Stock Noncontrolling Interests Total Equity Balance as of December 31, 2014 $ $ $ $ ) $ — $ $ Net income Other comprehensive income (loss) ) ) ) Distributions to shareholders of noncontrolling interests ) ) Acquisition resulting in noncontrolling interest Purchase of treasury stock ) ) Retirement of treasury stock ) ) — Stock options exercised, including tax benefit Dividends declared ) ) Stock-based compensation expense Balance as of September 30, 2015 $ $ $ $ ) $ — $ $ A rollforward of consolidated changes in equity for the nine months ended September 30, 2014 is as follows: Amphenol Corporation Shareholders Common Stock Accum. Other Shares (in millions) Amount Additional Paid- In Capital Retained Earnings Comprehensive Loss Treasury Stock Noncontrolling Interests Total Equity Balance as of December 31, 2013 $ $ $ $ ) $ — $ $ Net income Other comprehensive income (loss) ) ) ) Distributions to shareholders of noncontrolling interests ) ) Purchase of treasury stock ) ) Retirement of treasury stock ) ) — Stock options exercised, including tax benefit Dividends declared ) ) Stock-based compensation expense Balance as of September 30, 2014 $ $ $ $ ) $ — $ $ |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share | |
Schedule of the reconciliation of basic weighted average common shares outstanding to diluted weighted average common shares outstanding | Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Net income attributable to Amphenol Corporation shareholders $ $ $ $ Basic weighted average common shares outstanding Effect of dilutive stock options Diluted weighted average common shares outstanding Earnings per share attributable to Amphenol Corporation shareholders: Basic $ $ $ $ Diluted $ $ $ $ |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Stock-Based Compensation | |
Schedule of stock option activity | Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Options outstanding at January 1, 2015 $ $ Options granted Options exercised ) Options forfeited ) Options outstanding at March 31, 2015 Options granted Options exercised ) Options forfeited ) Options outstanding at June 30, 2015 Options granted Options exercised ) Options forfeited ) Options outstanding at September 30, 2015 $ $ Vested and non-vested options expected to vest at September 30, 2015 $ $ Exercisable options at September 30, 2015 $ $ |
Summary of status of non-vested options and changes during the year | Options Weighted Average Fair Value at Grant Date Non-vested options at January 1, 2015 $ Options granted Options vested ) Options forfeited ) Non-vested options at March 31, 2015 Options granted Options vested ) Options forfeited ) Non-vested options at June 30, 2015 Options granted Options vested ) Options forfeited ) Non-vested options at September 30, 2015 $ |
Summary of activity in the option plans | Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Total intrinsic value of stock options exercised $ $ $ $ Total fair value of stock options vested |
Schedule of restricted share activity | Restricted Shares Fair Value at Grant Date Weighted Average Remaining Amortization Term (in years) Restricted shares outstanding at January 1, 2015 $ Restricted shares granted Restricted shares outstanding at March 31, 2015 Shares vested and issued ) Restricted shares granted Restricted shares outstanding at June 30, 2015 Restricted shares outstanding at September 30, 2015 |
Benefit Plans and Other Postr27
Benefit Plans and Other Postretirement Benefits (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Benefit Plans and Other Postretirement Benefits | |
Schedule of components of net pension benefits | Pension Benefits Other Postretirement Benefits Three months ended September 30, 2015 2014 2015 2014 Service cost $ $ $ — $ — Interest cost Expected return on plan assets ) ) — — Amortization of prior service cost — — Amortization of net actuarial losses Net pension expense $ $ $ $ Pension Benefits Other Postretirement Benefits Nine months ended September 30, 2015 2014 2015 2014 Service cost $ $ $ $ Interest cost Expected return on plan assets ) ) — — Amortization of transition obligation ) ) — — Amortization of prior service cost — — Amortization of net actuarial losses Net pension expense $ $ $ $ |
Goodwill and Other Intangible28
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Other Intangible Assets | |
Summary of the Company's amortizable intangible assets | September 30, 2015 December 31, 2014 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Customer relationships $ $ $ $ Proprietary technology License agreements Backlog and other Total $ $ $ $ |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt | |
Schedule of Debt | September 30, 2015 December 31, 2014 Carrying Amount Approximate Fair Value Carrying Amount Approximate Fair Value $1,500.0 Revolving Credit Facility $ — $ — $ — $ — $1,500.0 Commercial Paper Program $200.0 Credit Agreement N/A N/A — — 1.55% Senior Notes due September 2017 2.55% Senior Notes due January 2019 3.125% Senior Notes due September 2021 4.00% Senior Notes due February 2022 Notes payable to foreign banks and other debt Total debt Less current portion ) ) ) ) Total long-term debt $ $ $ $ |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Measurements | |
Fair values of financial and non-financial assets and liabilities | Fair Value Measurements at September 30, 2015 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Short-term investments $ $ $ — $ — Forward contracts — — Total $ $ $ $ — Fair Value Measurements at December 31, 2014 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Short-term investments $ $ $ — $ — Forward contracts — — Total $ $ $ $ — |
Basis of Presentation and Pri31
Basis of Presentation and Principles of Consolidation (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Basis of Presentation and Principles of Consolidation | ||
Borrowings under commercial paper program, net | $ 266.9 | $ 0 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Inventories | ||
Raw materials and supplies | $ 307.3 | $ 299.4 |
Work in process | 293.7 | 282.8 |
Finished goods | 286.7 | 283.4 |
Inventories | $ 887.7 | $ 865.6 |
Reportable Business Segments (D
Reportable Business Segments (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015segment | Sep. 30, 2015item | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | |
Reportable Business Segments | ||||||
Number of reportable business segments | 2 | 2 | ||||
Segment reporting information | ||||||
Net sales | $ 1,459.6 | $ 1,358.7 | $ 4,138.2 | $ 3,919 | ||
Segment operating income | 294.8 | 267.8 | 815.7 | 755.8 | ||
Operating Segment | ||||||
Segment reporting information | ||||||
Net sales | 1,459.6 | 1,358.7 | 4,138.2 | 3,919 | ||
Segment operating income | 317.6 | 291.1 | 886.5 | 820.4 | ||
Operating Segment | Interconnect Products and Assemblies | ||||||
Segment reporting information | ||||||
Net sales | 1,378.2 | 1,268.6 | 3,889.5 | 3,650.1 | ||
Segment operating income | 307.4 | 279.8 | 856.3 | 786.8 | ||
Operating Segment | Cable Products and Solutions | ||||||
Segment reporting information | ||||||
Net sales | 81.4 | 90.1 | 248.7 | 268.9 | ||
Segment operating income | 10.2 | 11.3 | 30.2 | 33.6 | ||
Intersegment | ||||||
Segment reporting information | ||||||
Net sales | 7.1 | 3.5 | 21.3 | 17.9 | ||
Intersegment | Interconnect Products and Assemblies | ||||||
Segment reporting information | ||||||
Net sales | 1.5 | 2.2 | 5.6 | 4.9 | ||
Intersegment | Cable Products and Solutions | ||||||
Segment reporting information | ||||||
Net sales | $ 5.6 | $ 1.3 | $ 15.7 | $ 13 |
Reportable Business Segments 34
Reportable Business Segments (Details 2) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Reconciliation of segment operating income to consolidated income before income taxes | ||||
Segment operating income | $ 294.8 | $ 267.8 | $ 815.7 | $ 755.8 |
Interest expense | (17) | (21.1) | (51.1) | (60.2) |
Stock-based compensation expense | (11.8) | (10.1) | (32.1) | (29.4) |
Acquisition-related expenses | (2.5) | (5.7) | (4.6) | |
Income before income taxes | 282 | 251.5 | 777.1 | 708.6 |
Operating Segment | ||||
Reconciliation of segment operating income to consolidated income before income taxes | ||||
Segment operating income | 317.6 | 291.1 | 886.5 | 820.4 |
Unallocated amount to segment | ||||
Reconciliation of segment operating income to consolidated income before income taxes | ||||
Interest expense | (17) | (21.1) | (51.1) | (60.2) |
Interest Income | 4.9 | 5.3 | 14.3 | 14.6 |
Stock-based compensation expense | (11.8) | (10.1) | (32.1) | (29.4) |
Acquisition-related expenses | (2.5) | (5.7) | (4.6) | |
Other costs, net | (11.7) | (11.2) | (34.8) | (32.2) |
Income before income taxes | $ 282 | $ 251.5 | $ 777.1 | $ 708.6 |
Changes in Equity and Noncont35
Changes in Equity and Noncontrolling Interests (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Increase (Decrease) In Shareholders' Equity | ||||
Balance at beginning of period | $ 2,937.9 | $ 2,880.1 | ||
Balance at beginning of period | (205.8) | |||
Net income | $ 207.3 | $ 184.2 | 569.7 | 520.4 |
Other comprehensive income (loss) | (48.1) | (44.9) | (98.4) | (42.4) |
Distributions to shareholders of noncontrolling interests | (6.1) | (3.6) | ||
Acquisition resulting in noncontrolling interest | 7.9 | |||
Purchase of treasury stock | (195.6) | (400.8) | ||
Stock options exercised, including tax benefit | 54.4 | 116.5 | ||
Dividends declared | (43.2) | (39.1) | (120.5) | (101.9) |
Stock-based compensation expense | 32.1 | 29.4 | ||
Balance at end of period | 3,181.4 | $ 2,997.7 | 3,181.4 | $ 2,997.7 |
Balance at end of period | $ (303.6) | $ (303.6) | ||
Common Stock | ||||
Increase (Decrease) In Shareholders' Equity | ||||
Balance at beginning of period (in shares) | 309.8 | 316.4 | ||
Balance at beginning of period | $ 0.3 | $ 0.3 | ||
Retirement of treasury stock (in shares) | (3.5) | (8.5) | ||
Stock options exercised, including tax benefit (in shares) | 1.9 | 4.4 | ||
Balance at end of period (in shares) | 308.2 | 312.3 | 308.2 | 312.3 |
Balance at end of period | $ 0.3 | $ 0.3 | $ 0.3 | $ 0.3 |
Additional Paid in Capital | ||||
Increase (Decrease) In Shareholders' Equity | ||||
Balance at beginning of period | 659.4 | 489.8 | ||
Stock options exercised, including tax benefit | 54.4 | 116.5 | ||
Stock-based compensation expense | 32.1 | 29.4 | ||
Balance at end of period | 745.9 | 635.7 | 745.9 | 635.7 |
Retained Earnings | ||||
Increase (Decrease) In Shareholders' Equity | ||||
Balance at beginning of period | 2,453.5 | 2,424.4 | ||
Net income | 563.3 | 515.6 | ||
Retirement of treasury stock | (195.6) | (400.8) | ||
Dividends declared | (120.5) | (101.9) | ||
Balance at end of period | 2,700.7 | 2,437.3 | 2,700.7 | 2,437.3 |
Accumulated Other Comprehensive Loss | ||||
Increase (Decrease) In Shareholders' Equity | ||||
Balance at beginning of period | (205.8) | (55) | ||
Other comprehensive income (loss) | (97.8) | (42.1) | ||
Balance at end of period | (303.6) | (97.1) | (303.6) | (97.1) |
Treasury Stock | ||||
Increase (Decrease) In Shareholders' Equity | ||||
Purchase of treasury stock | (195.6) | (400.8) | ||
Retirement of treasury stock | 195.6 | 400.8 | ||
Noncontrolling Interests | ||||
Increase (Decrease) In Shareholders' Equity | ||||
Balance at beginning of period | 30.5 | 20.6 | ||
Net income | 6.4 | 4.8 | ||
Other comprehensive income (loss) | (0.6) | (0.3) | ||
Distributions to shareholders of noncontrolling interests | (6.1) | (3.6) | ||
Acquisition resulting in noncontrolling interest | 7.9 | |||
Balance at end of period | $ 38.1 | $ 21.5 | $ 38.1 | $ 21.5 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share | ||||
Net income attributable to Amphenol Corporation shareholders (in dollars) | $ 204.5 | $ 182.2 | $ 563.3 | $ 515.6 |
Basic weighted average common shares outstanding | 308,853,642 | 313,284,242 | 309,262,335 | 314,183,699 |
Effect of dilutive stock options (in shares) | 7,032,954 | 7,352,163 | 7,646,756 | 7,334,337 |
Dilutive weighted average common shares outstanding | 315,886,596 | 320,636,405 | 316,909,091 | 321,518,036 |
Earnings per share attributable to Amphenol Corporation shareholders: | ||||
Basic (in dollars per share) | $ 0.66 | $ 0.58 | $ 1.82 | $ 1.64 |
Diluted (in dollars per share) | $ 0.65 | $ 0.57 | $ 1.78 | $ 1.60 |
Anti-dilutive stock options, excluded from the computations of earning per share | 9,388,150 | 6,169,900 | 5,033,840 | 4,695,200 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Jul. 17, 2015USD ($) |
FCI | |
Business Acquisition [Line Items] | |
Aggregate purchase price | $ 1,275 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 31, 2014 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||
Expense incurred for stock-based compensation plans | $ 11.8 | $ 10.1 | $ 32.1 | $ 29.4 | ||||
Expense incurred for stock-based compensation plans, net of tax | $ 8.8 | 7.5 | $ 23.9 | 21.6 | ||||
Stock Options | ||||||||
Stock option activity | ||||||||
Options outstanding at the beginning of the period (in shares) | 32,226,210 | 27,044,960 | 27,787,920 | 27,787,920 | ||||
Options granted (in shares) | 112,000 | 6,286,200 | 92,000 | |||||
Options exercised (in shares) | (146,400) | (1,006,630) | (742,280) | |||||
Options forfeited (in shares) | (141,300) | (98,320) | (92,680) | |||||
Options outstanding at the end of the period (in shares) | 27,787,920 | 32,050,510 | 32,226,210 | 27,044,960 | 32,050,510 | 27,787,920 | ||
Vested and non-vested options expected to vest at the end of the period (in shares) | 29,433,574 | 29,433,574 | ||||||
Exercisable at the end of the period (in shares) | 14,625,670 | 14,625,670 | ||||||
Weighted Average Exercise Price | ||||||||
Weighted average exercise price, options outstanding at the beginning of the period (in dollars per share) | $ 37.20 | $ 31.95 | $ 31.60 | $ 31.60 | ||||
Weighted average exercise price, options outstanding at the end of the period (in dollars per share) | $ 31.60 | 37.27 | $ 37.20 | $ 31.95 | 37.27 | $ 31.60 | ||
Weighted average exercise price, vested and non-vested options expected to vest (in dollars per share) | 36.69 | 36.69 | ||||||
Weighted average exercise price, exercisable (in dollars per share) | $ 26.61 | $ 26.61 | ||||||
Weighted Average Remaining Contractual Term | ||||||||
Weighted average remaining contractual term of options outstanding | 7 years 1 month 6 days | 7 years 4 months 2 days | 6 years 10 months 28 days | 7 years 1 month 2 days | ||||
Weighted average remaining contractual term of options vested options and non-vested expected to vest | 7 years 4 days | |||||||
Weighted average remaining contractual term of options exercisable | 5 years 6 months 7 days | |||||||
Aggregate Intrinsic Value | ||||||||
Aggregate intrinsic value of options outstanding | $ 617.2 | $ 483.2 | $ 669.4 | $ 729.7 | $ 483.2 | $ 617.2 | ||
Aggregate intrinsic value of options, vested and non-vested options expected to vest | 458.7 | 458.7 | ||||||
Aggregate intrinsic value of options exercisable | $ 356.1 | $ 356.1 | ||||||
Status of the Company's non-vested options and changes during the year | ||||||||
Non-vested options at the beginning of the period (in shares) | 17,502,480 | 16,412,880 | 16,440,560 | 16,440,560 | ||||
Non-vested options, options granted (in shares) | 112,000 | 6,286,200 | 92,000 | |||||
Non-vested options, options vested (in shares) | (48,340) | (5,098,280) | (27,000) | |||||
Non-vested options, options forfeited (in shares) | (141,300) | (98,320) | (92,680) | |||||
Non-vested options at the end of the period (in shares) | 16,440,560 | 17,424,840 | 17,502,480 | 16,412,880 | 17,424,840 | 16,440,560 | ||
Weighted Average Fair Value at Grant Date | ||||||||
Weighted average fair value at the grant date, options outstanding at the beginning of the period (in dollars per share) | $ 8.24 | $ 7.99 | $ 7.98 | $ 7.98 | ||||
Weighted average fair value at grant date, options granted (in dollars per share) | 7.65 | 8.49 | 10.30 | |||||
Weighted average fair value at grant date, options vested (in dollars per share) | 8.56 | 7.69 | 9.51 | |||||
Weighted average fair value at grant date, options forfeited (in dollars per share) | 8.13 | 8.09 | 7.94 | |||||
Weighted average fair value at the grant date, options outstanding at the end of the period (in dollars per share) | $ 7.98 | $ 8.24 | $ 8.24 | $ 7.99 | $ 8.24 | $ 7.98 | ||
Fair Value at Grant Date | ||||||||
Total intrinsic value of stock options exercised | $ 3.9 | 45.5 | $ 61.8 | 123.9 | ||||
Total fair value of stock options vested | 0.4 | $ 0.2 | 39.8 | $ 37.3 | ||||
Total compensation cost related to non-vested options not yet recognized | 115.1 | $ 115.1 | ||||||
Weighted average expected amortization period | 3 years 6 months 18 days | |||||||
Restricted Shares | ||||||||
Fair Value at Grant Date | ||||||||
Total compensation cost related to non-vested restricted shares not yet recognized | $ 0.6 | $ 0.6 | ||||||
Weighted average expected amortization period | 7 months 21 days | |||||||
2000 Employee Option Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||
Number of additional stock options that can be granted (in shares) | 0 | 0 | ||||||
Options exercisable period | 10 years | |||||||
2009 Employee Option Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||
Common Stock reserved for issuance | 58,000,000 | 58,000,000 | ||||||
Shares available for the granting of additional stock options | 18,820,680 | 18,820,680 | ||||||
Options ratable vesting period | 5 years | |||||||
Options exercisable period | 10 years | |||||||
2004 Directors Option Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||
Shares available for the granting of additional stock options | 140,000 | 140,000 | ||||||
Number of additional stock options expected to be granted (in shares) | 0 | 0 | ||||||
Options exercisable period | 10 years | |||||||
2012 Directors Restricted Stock Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||
Shares available for the granting of additional stock options | 153,974 | 153,974 | ||||||
2012 Directors Restricted Stock Plan | Restricted Shares | ||||||||
Restricted share activity | ||||||||
Restricted shares outstanding at the beginning of the period (in shares) | 17,256 | 19,032 | 18,340 | 18,340 | ||||
Restricted shares vested and issued | (19,032) | |||||||
Restricted shares granted | 17,256 | 692 | ||||||
Restricted shares outstanding at the end of the period (in shares) | 18,340 | 17,256 | 17,256 | 19,032 | 17,256 | 18,340 | ||
Fair Value at Grant Date | ||||||||
Fair value at the grant date, restricted shares outstanding at the beginning of the period (in dollars per share) | $ 57.97 | $ 47.98 | $ 47.72 | $ 47.72 | ||||
Fair value of restricted shares vested and issued (in dollar per share) | 47.98 | |||||||
Fair value of restricted shares granted (in dollars per share) | 57.97 | 54.96 | ||||||
Fair value at the grant date, restricted shares outstanding at the beginning of the period (in dollars per share) | $ 47.72 | $ 57.97 | $ 57.97 | $ 47.98 | $ 57.97 | $ 47.72 | ||
Weighted Average Remaining Amortization Term (in years) | 4 months 21 days | 7 months 21 days | 10 months 24 days | 1 month 24 days |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
Jan. 31, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Oct. 31, 2015 | Jun. 30, 2015 | May. 20, 2015 | May. 19, 2015 | Jun. 30, 2014 | |
Common stock shares authorized | 1,000 | 500 | ||||||||
Quarterly dividend approved by Board prior to payment, per share (in dollars per share) | $ 0.14 | $ 0.125 | $ 0.14 | $ 0.125 | $ 0.125 | $ 0.10 | ||||
Dividends paid | $ 38.6 | $ 70.5 | $ 116.1 | $ 101.9 | ||||||
Dividends declared | $ 43.2 | $ 39.1 | $ 120.5 | $ 101.9 | ||||||
2015 Stock Repurchase Program | ||||||||||
Number of shares authorized to be repurchased under the current open-market stock repurchase program | 10 | |||||||||
Repurchase of stock program, period | 2 years | |||||||||
Number of shares repurchased under the current open-market stock repurchase program | 3.5 | |||||||||
Payments for shares repurchased under the current open-market stock repurchase program (in dollars) | $ 195.6 | |||||||||
Number of shares remaining that maybe repurchased under the stock repurchase program | 6.5 |
Benefit Plans and Other Postr40
Benefit Plans and Other Postretirement Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Summary of the defined benefit pension plans and other post-retirement benefits | ||||
Contributions to U.S. defined contribution plans by the Company, maximum percentage of eligible compensation | 5.00% | |||
Matching contributions to U.S. defined contribution plans by the Company | $ 3.2 | $ 2.7 | ||
Pension Benefits | ||||
Summary of the defined benefit pension plans and other post-retirement benefits | ||||
Service cost | $ 2.3 | $ 2 | 7 | 6.1 |
Interest cost | 5.8 | 6 | 17.4 | 18.1 |
Expected return on plan assets | (7.3) | (7.1) | (21.8) | (21.4) |
Amortization of transition obligation | (0.1) | (0.1) | ||
Amortization of prior service cost | 0.6 | 0.7 | 1.7 | 2 |
Amortization of net actuarial losses | 6.5 | 4 | 19.4 | 12.1 |
Net pension expense | 7.9 | 5.6 | 23.6 | 16.8 |
U.S. plans, Pension Benefits | ||||
Summary of the defined benefit pension plans and other post-retirement benefits | ||||
Employer contributions | 16 | 16 | ||
Estimated cash contribution to the Plans in 2015 based on current actuarial calculations | 22 | |||
Other Postretirement Benefits | ||||
Summary of the defined benefit pension plans and other post-retirement benefits | ||||
Service cost | 0.1 | 0.1 | ||
Interest cost | 0.1 | 0.1 | 0.3 | 0.4 |
Amortization of net actuarial losses | 0.1 | 0.1 | 0.2 | 0.3 |
Net pension expense | $ 0.2 | $ 0.2 | $ 0.6 | $ 0.8 |
Goodwill and Other Intangible41
Goodwill and Other Intangible Assets (Details) $ in Millions | 9 Months Ended | |||
Sep. 30, 2015USD ($)segment | Sep. 30, 2015USD ($)item | Sep. 30, 2015USD ($) | Dec. 31, 2014USD ($) | |
Goodwill | ||||
Goodwill | $ 2,706.3 | $ 2,706.3 | $ 2,706.3 | $ 2,616.7 |
Increase in goodwill, primarily as a result of an acquisition | 89.6 | |||
Number of reportable business segments | 2 | 2 | ||
Goodwill impairment | 0 | |||
Interconnect Products and Assemblies | ||||
Goodwill | ||||
Goodwill | $ 2,582.6 | $ 2,582.6 | 2,582.6 | |
Number of acquisitions | item | 3 | |||
Goodwill offset by currency translation | $ 63.7 |
Goodwill and Other Intangible42
Goodwill and Other Intangible Assets (Details 2) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Goodwill and Other Intangible Assets | |||||
Indefinite-lived trade name intangible asset | $ 52.3 | $ 52.3 | |||
Summary of the Company's amortizable intangible assets | |||||
Gross Carrying Amount | 397.2 | 397.2 | $ 379.3 | ||
Accumulated Amortization | 169.5 | $ 169.5 | 143.8 | ||
Weighted average useful lives of acquired amortizable intangible assets | 10 years | ||||
Amortization expense | 8.9 | $ 6.2 | $ 25.6 | $ 20.7 | |
Amortization expense estimated for each of the next five fiscal years | |||||
Remainder of 2015 | 8.9 | 8.9 | |||
2,016 | 35.3 | 35.3 | |||
2,017 | 34.9 | 34.9 | |||
2,018 | 30.8 | 30.8 | |||
2,019 | 26.6 | 26.6 | |||
2,020 | 23.4 | 23.4 | |||
Customer relationships | |||||
Summary of the Company's amortizable intangible assets | |||||
Gross Carrying Amount | 317.7 | 317.7 | 299.8 | ||
Accumulated Amortization | 114.5 | $ 114.5 | 92.3 | ||
Weighted average useful lives of acquired amortizable intangible assets | 10 years | ||||
Proprietary technology | |||||
Summary of the Company's amortizable intangible assets | |||||
Gross Carrying Amount | 53.8 | $ 53.8 | 53.8 | ||
Accumulated Amortization | 29.8 | $ 29.8 | 26.5 | ||
Weighted average useful lives of acquired amortizable intangible assets | 14 years | ||||
License agreements | |||||
Summary of the Company's amortizable intangible assets | |||||
Gross Carrying Amount | 6 | $ 6 | 6 | ||
Accumulated Amortization | 6 | $ 6 | 6 | ||
Weighted average useful lives of acquired amortizable intangible assets | 8 years | ||||
Backlog and other | |||||
Summary of the Company's amortizable intangible assets | |||||
Gross Carrying Amount | 19.7 | $ 19.7 | 19.7 | ||
Accumulated Amortization | $ 19.2 | $ 19.2 | $ 19 | ||
Weighted average useful lives of acquired amortizable intangible assets | 2 years |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | |
Debt | |||
Total debt, Carrying Amount | $ 2,853.4 | $ 2,673.9 | |
Less current portion | (0.4) | (1.6) | |
Long-term debt, less current portion | 2,853 | 2,672.3 | |
Total debt, Approximate Fair Value | 2,880 | 2,704 | |
Less short-term debt, Approximate Fair Value | (0.4) | (1.6) | |
Long-term debt, Approximate Fair Value | 2,879.6 | 2,702.4 | |
Revolving Credit Facility | The "Revolving Credit Facility" | |||
Debt | |||
Maximum borrowing capacity | 1,500 | ||
Line of Credit | The "Credit Agreement" | |||
Debt | |||
Maximum borrowing capacity | $ 200 | ||
Commercial Paper. | The "Program" | |||
Debt | |||
Total debt, Carrying Amount | 852.3 | 671 | |
Total debt, Approximate Fair Value | 852.3 | 671 | |
Maximum borrowing capacity | $ 1,500 | 1,500 | |
Maximum maturity term | 397 days | ||
Average Interest Rate (as a percent) | 0.48% | ||
Senior Notes | |||
Debt | |||
Redemption price as a percentage of principal amount | 100.00% | ||
Senior Notes | 1.55% Senior Notes due September 2017 | |||
Debt | |||
Total debt, Carrying Amount | $ 374.8 | 374.7 | |
Total debt, Approximate Fair Value | $ 374.8 | $ 373 | |
Stated interest rate (as a percent) | 1.55% | 1.55% | |
Senior Notes | 2.55% Senior Notes due January 2019 | |||
Debt | |||
Total debt, Carrying Amount | $ 749.2 | $ 749.1 | |
Total debt, Approximate Fair Value | $ 758 | $ 754.9 | |
Stated interest rate (as a percent) | 2.55% | 2.55% | |
Senior Notes | 3.125% Senior Notes due September 2021 | |||
Debt | |||
Total debt, Carrying Amount | $ 374.7 | $ 374.7 | |
Total debt, Approximate Fair Value | $ 375.1 | $ 375.3 | |
Stated interest rate (as a percent) | 3.125% | 3.125% | |
Senior Notes | 4.00% Senior Notes due February 2022 | |||
Debt | |||
Total debt, Carrying Amount | $ 499.2 | $ 499.1 | |
Total debt, Approximate Fair Value | $ 516.6 | $ 524.5 | |
Stated interest rate (as a percent) | 4.00% | 4.00% | |
Notes payable to foreign banks and other debt | |||
Debt | |||
Total debt, Carrying Amount | $ 3.2 | $ 5.3 | |
Total debt, Approximate Fair Value | $ 3.2 | $ 5.3 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Fair value measurements recurring basis - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Fair value of assets and liabilities measured on recurring basis | ||
Short-term Investments | $ 22.1 | $ 360.7 |
Forward contracts | 21.2 | 11 |
Total | 43.3 | 371.7 |
Level 1 | ||
Fair value of assets and liabilities measured on recurring basis | ||
Short-term Investments | 22.1 | 360.7 |
Total | 22.1 | 360.7 |
Level 2 | ||
Fair value of assets and liabilities measured on recurring basis | ||
Forward contracts | 21.2 | 11 |
Total | $ 21.2 | $ 11 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Taxes [Line Items] | ||||
Effective tax rate (as a percent) | 26.50% | 26.80% | 26.70% | 26.60% |
Effective tax rate excluding the net impact of acquisition-related expenses (as a percent) | 26.50% | 26.50% | 26.50% | 26.50% |
Unrecognized tax benefits, anticipated adjustment for changing facts and circumstances, over the next twelve month period | $ 3.7 | $ 3.7 | ||
Accrued pension benefit obligations and other long-term liabilities | ||||
Income Taxes [Line Items] | ||||
Liability for unrecognized tax benefits, which if recognized would impact the effective tax rate | $ 19.8 | $ 19.8 |