Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 30, 2016 | |
Document and Entity Information | ||
Entity Registrant Name | AMPHENOL CORP /DE/ | |
Entity Central Index Key | 820,313 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
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 | 307,927,051 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 687 | $ 1,737.2 |
Short-term investments | 26.6 | 23.2 |
Total cash, cash equivalents and short-term investments | 713.6 | 1,760.4 |
Accounts receivable, less allowance for doubtful accounts of $26.2 and $25.6, respectively | 1,201.9 | 1,104.6 |
Inventories | 933.5 | 851.8 |
Other current assets | 140.6 | 133.2 |
Total current assets | 2,989.6 | 3,850 |
Land and depreciable assets, less accumulated depreciation of $948.9 and $900.9, respectively | 693.3 | 609.5 |
Goodwill | 3,659.8 | 2,692.9 |
Intangibles and other long-term assets | 547.3 | 306 |
Total assets | 7,890 | 7,458.4 |
Current Liabilities: | ||
Accounts payable | 615.4 | 587.8 |
Accrued salaries, wages and employee benefits | 122 | 105.6 |
Accrued income taxes | 95.8 | 81.8 |
Accrued dividends | 43 | 43.2 |
Other accrued expenses | 193.1 | 189.7 |
Current portion of long-term debt | 0.3 | 0.3 |
Total current liabilities | 1,069.6 | 1,008.4 |
Long-term debt, less current portion | 2,866.2 | 2,813.2 |
Accrued pension benefit obligations and other long-term liabilities | 530 | 358.4 |
Equity: | ||
Common stock | 0.3 | 0.3 |
Additional paid-in capital | 814.5 | 783.3 |
Retained earnings | 2,868.8 | 2,804.4 |
Accumulated other comprehensive loss | (297.4) | (349.5) |
Total shareholders' equity attributable to Amphenol Corporation | 3,386.2 | 3,238.5 |
Noncontrolling interests | 38 | 39.9 |
Total equity | 3,424.2 | 3,278.4 |
Total Liabilities and Equity | $ 7,890 | $ 7,458.4 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable, allowance for doubtful accounts | $ 26.2 | $ 25.6 |
Land and depreciable assets, accumulated depreciation | $ 948.9 | $ 900.9 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||
Net sales | $ 1,451.2 | $ 1,327.1 |
Cost of sales | 992 | 902.5 |
Gross profit | 459.2 | 424.6 |
Acquisition-related expenses | 30.3 | |
Selling, general and administrative expense | 189.5 | 164.4 |
Operating income | 239.4 | 260.2 |
Interest expense | (18.1) | (17) |
Other income, net | 1 | 4.1 |
Income before income taxes | 222.3 | 247.3 |
Provision for income taxes | (63.9) | (65.5) |
Net income | 158.4 | 181.8 |
Less: Net income attributable to noncontrolling interests | (1.8) | (2) |
Net income attributable to Amphenol Corporation | $ 156.6 | $ 179.8 |
Net income per common share - Basic (in dollars per share) | $ 0.51 | $ 0.58 |
Weighted average common shares outstanding - Basic (in shares) | 307.6 | 310 |
Net income per common share - Diluted (in dollars per share) | $ 0.50 | $ 0.57 |
Weighted average common shares outstanding - Diluted (in shares) | 314.2 | 318 |
Dividends declared per common share (in dollars per share) | $ 0.14 | $ 0.125 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net income | $ 158.4 | $ 181.8 |
Total other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustments | 46.1 | (67.9) |
Unrealized gain on cash flow hedges | 2.3 | 0.6 |
Defined benefit plan adjustment, net of tax of ($2.2) and ($0.8), respectively | 4 | 1.6 |
Total other comprehensive income (loss), net of tax | 52.4 | (65.7) |
Total comprehensive income | 210.8 | 116.1 |
Less: Comprehensive income attributable to noncontrolling interests | (2.1) | (2) |
Comprehensive income attributable to Amphenol Corporation | $ 208.7 | $ 114.1 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Defined benefit plan adjustment, tax | $ (2.2) | $ (0.8) |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash from operating activities: | ||
Net income | $ 158.4 | $ 181.8 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 61.9 | 40.1 |
Stock-based compensation expense | 11.6 | 10.1 |
Excess tax benefits from stock-based compensation payment arrangements | (4.2) | (3.6) |
Net change in components of working capital | (45.9) | (40.1) |
Net change in other long-term assets and liabilities | 12.4 | |
Net cash provided by operating activities | 194.2 | 188.3 |
Cash from investing activities: | ||
Purchases of land and depreciable assets | (41) | (40) |
Proceeds from disposals of land and depreciable assets | 2.7 | 0.3 |
Purchases of short-term investments | (16.1) | (104.5) |
Sales and maturities of short-term investments | 13.1 | 84 |
Acquisitions, net of cash acquired | (1,185.8) | (76.1) |
Net cash used in investing activities | (1,227.1) | (136.3) |
Cash from financing activities: | ||
Long-term borrowings under credit facilities | 125 | |
Repayments of long-term debt | (86.2) | |
Borrowings under commercial paper program, net | 50.8 | 46.8 |
Payments of costs related to debt financing | (3) | |
Proceeds from exercise of stock options | 14.6 | 16 |
Excess tax benefits from stock-based compensation payment arrangements | 4.2 | 3.6 |
Distributions to shareholders of noncontrolling interests | (4) | (3.2) |
Purchase and retirement of treasury stock | (49.2) | (62.2) |
Dividend payments | (43.2) | (77.5) |
Net cash used in financing activities | (29.8) | (37.7) |
Effect of exchange rate changes on cash and cash equivalents | 12.5 | (13.3) |
Net change in cash and cash equivalents | (1,050.2) | 1 |
Cash and cash equivalents balance, beginning of period | 1,737.2 | 968.9 |
Cash and cash equivalents balance, end of period | 687 | 969.9 |
Cash paid for: | ||
Interest | 31.2 | 30.2 |
Income taxes | $ 47.6 | $ 51.9 |
Basis of Presentation and Princ
Basis of Presentation and Principles of Consolidation | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 and December 31, 2015, and the related condensed consolidated statements of income, the condensed consolidated statements of comprehensive income and the condensed consolidated statements of cash flow for the three months ended March 31, 2016 and 2015 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 months ended March 31, 2016 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, 2015 (the “2015 Annual Report”). Reclassification 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. The Company has reclassified the prior period balance for the three months ended March 31, 2015 to reflect such change. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2016 | |
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. 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. In March 2016, the FASB issued Accounting Standards Update No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , which clarified the implementation guidance on principal versus agent considerations. 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 has evaluated ASU 2014-15 and it does 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 anticipate a material impact on its consolidated financial statements. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) (“ASU 2016-02”) , which amends, among other things, the existing guidance by requiring lessees to recognize lease assets (right-to-use) and liabilities (for reasonably certain lease payments) arising from operating leases on the balance sheet. For leases with a term of twelve months or less, ASU 2016-02 permits an entity to make an accounting policy election to recognize such leases as lease expense, generally on a straight-line basis over the lease term. ASU 2016-02 is effective for interim and annual periods beginning after December 15, 2018 using a modified retrospective approach, with early adoption permitted. The Company is currently evaluating ASU 2016-02 and its impact on its consolidated financial statements. In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”) , which simplifies certain provisions associated with the accounting for stock compensation, including the income tax consequences, classification of awards, and classification on the statement of cash flows. ASU 2016-09 is effective for interim and annual periods beginning after December 15, 2016, with early adoption permitted. The Company is currently evaluating ASU 2016-09 and its impact on its consolidated financial statements. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2016 | |
Inventories | |
Inventories | Note 3—Inventories Inventories consist of: March 31, 2016 December 31, 2015 Raw materials and supplies $ $ Work in process Finished goods $ $ |
Reportable Business Segments
Reportable Business Segments | 3 Months Ended |
Mar. 31, 2016 | |
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-add 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-add 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 2015 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 March 31, 2016 and 2015 are as follows: Interconnect Products and Assemblies Cable Products and Solutions Total Three months ended March 31, 2016 2015 2016 2015 2016 2015 Net sales: External $ $ $ $ $ $ Intersegment Segment operating income A reconciliation of segment operating income to consolidated income before income taxes for the three months ended March 31, 2016 and 2015 is summarized as follows: Three months ended March 31, 2016 2015 Segment operating income $ $ Interest expense ) ) Other income, net Stock-based compensation expense ) ) Acquisition-related expenses ) — Other costs ) ) Income before income taxes $ $ |
Changes in Equity and Noncontro
Changes in Equity and Noncontrolling Interests | 3 Months Ended |
Mar. 31, 2016 | |
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 three months ended March 31, 2016 is as follows: Amphenol Corporation Shareholders Common Stock Accumulated Other Shares (in millions) Amount Additional Paid- In Capital Retained Earnings Comprehensive Loss Treasury Stock Noncontrolling Interests Total Equity Balance as of December 31, 2015 $ $ $ $ ) $ — $ $ 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 March 31, 2016 $ $ $ $ ) $ — $ $ A rollforward of consolidated changes in equity for the three months ended March 31, 2015 is as follows: Amphenol Corporation Shareholders Common Stock Accumulated 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 ) ) Purchase of treasury stock ) ) Retirement of treasury stock ) ) — Stock options exercised, including tax benefit Dividends declared ) ) Stock-based compensation expense Balance as of March 31, 2015 $ $ $ $ ) $ — $ $ |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2016 | |
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 months ended March 31, 2016 and 2015 is as follows (dollars and shares in millions): Three months ended March 31, 2016 2015 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 common shares of 11.0 million and 3.1 million for the three months ended March 31, 2016 and 2015, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 7—Commitments and Contingencies The Company has been named as defendant in several legal actions in which various amounts are claimed arising from normal business activities. The Company records a loss contingency liability when there is at least a reasonable possibility that a loss is considered probable and the amount can be reasonably estimated. Although the potential liability with respect to such legal actions cannot be reasonably estimated, such matters are not expected to have a material adverse effect on the Company’s financial condition, results of operations or cash flows. The Company’s legal costs associated with defending itself are recorded to expense as incurred. 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 | 3 Months Ended |
Mar. 31, 2016 | |
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 under the 2009 Employee Option Plan, as amended, is 58,000,000 shares. As of March 31, 2016, there were 18,714,960 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. 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 March 31, 2016, 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 months ended March 31, 2016 was as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Options outstanding at January 1, 2016 $ $ Options granted Options exercised ) Options forfeited ) Options outstanding at March 31, 2016 Vested and non-vested options expected to vest at March 31, 2016 $ $ Exercisable options at March 31, 2016 $ $ A summary of the status of the Company’s non-vested options as of March 31, 2016 and changes during the three months then ended is as follows: Options Weighted Average Fair Value at Grant Date Non-vested options at January 1, 2016 $ Options granted Options vested ) Options forfeited ) Non-vested options at March 31, 2016 During the three months ended March 31, 2016 and 2015, the following activity occurred under the Company’s option plans: Three months ended March 31, 2016 2015 Total intrinsic value of stock options exercised $ $ Total fair value of stock options vested As of March 31, 2016, the total compensation cost related to non-vested options not yet recognized was approximately $97.4 with a weighted average expected amortization period of 3.20 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 March 31, 2016, 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 the Company’s Common Stock without payment. Restricted share activity for the three months ended March 31, 2016 was as follows: Restricted Shares Fair Value at Grant Date Weighted Average Remaining Amortization Term (in years) Restricted shares outstanding at January 1, 2016 $ Restricted shares granted — — — Restricted shares outstanding at March 31, 2016 As of March 31, 2016, the total compensation cost related to non-vested restricted shares not yet recognized was approximately $0.1 with a weighted average expected amortization period of 0.15 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 Company’s 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 March 31, 2016, the Company’s income before income taxes and net income were reduced for stock-based compensation expense by $11.6 and $8.8, respectively. For the three months ended March 31, 2015, the Company’s income before income taxes and net income were reduced for stock-based compensation expense by $10.1 and $7.6, respectively. 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 | 3 Months Ended |
Mar. 31, 2016 | |
Shareholders' Equity | |
Shareholders' Equity | Note 9—Shareholders’ Equity 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”). During the three months ended March 31, 2016, the Company repurchased 1.0 million shares of Common Stock for $49.2. 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 April 30, 2016. At April 30, 2016, approximately 4.5 million additional shares of Common Stock may be repurchased under the 2015 Stock Repurchase Program. The price and timing of any future 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. Contingent upon declaration by the Board of Directors, the Company generally pays a quarterly dividend on shares of its Common Stock. In the third quarter of 2015, the Board of Directors approved an increase in the quarterly dividend rate from $0.125 to $0.14 per share effective with the third quarter 2015 dividend. For the three months ended March 31, 2016, the Company paid dividends in the amount of $43.2, and declared dividends in the amount of $43.0. For the three months ended March 31, 2015, the Company paid dividends in the amount of $77.5, and declared dividends in the amount of $38.8. |
Benefit Plans and Other Postret
Benefit Plans and Other Postretirement Benefits | 3 Months Ended |
Mar. 31, 2016 | |
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 months ended March 31, 2016 and 2015. Pension Benefits Other Postretirement Benefits Three months ended March 31, 2016 2015 2016 2015 Service cost $ $ $ — $ — Interest cost Expected return on plan assets ) ) — — Amortization of prior service cost — — Amortization of net actuarial losses Net pension expense $ $ $ $ For the three months ended March 31, 2016, the Company did not make a cash contribution to the Plans, and estimates that, based on current actuarial calculations, it will make aggregate cash contributions to the Plans in 2016 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 three months ended March 31, 2016 and 2015, the total matching contributions to these U.S. defined contribution plans in each period were approximately $1.2. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2016 | |
Acquisitions | |
Acquisitions | Note 11—Acquisitions On January 8, 2016, the Company acquired all of the share capital of FCI Asia Pte Ltd (“FCI”) for a purchase price of approximately $1,178.6 (subject to closing adjustments), net of cash acquired. The acquisition was funded by cash, cash equivalents and short-term investments that were held outside of the United States. In addition, for the quarter ended March 31, 2016, Amphenol incurred approximately $30.3 ($27.3 after-tax) of acquisition-related expenses related to the acquisition of FCI which are separately presented in the accompanying Condensed Consolidated Statements of Income primarily related to external transaction costs, amortization related to the value associated with acquired backlog and post-closing restructuring charges. The accompanying Condensed Consolidated Statements of Income include the results of FCI for the period from the acquisition date through March 31, 2016. Excluding the impact of acquisitions as well as the negative impact of foreign exchange of approximately $19.3, the Company’s n et sales decreased approximately 1% in the first quarter of 2016 compared to the prior year quarter. Headquartered in Singapore, FCI, a global leader in interconnect solutions for the information technology and data communications, industrial, mobile networks, automotive and mobile devices markets, is reported as part of the Company’s Interconnect Products and Assemblies segment. FCI is a leading supplier of high-speed backplane and mezzanine connectors, power interconnect solutions and a wide variety of board-mounted interconnects. Preliminary Allocation of Purchase Price The purchase price was allocated to the tangible and identifiable intangible assets acquired and liabilities assumed of FCI based upon their estimated fair values. The excess purchase price over the fair value of the underlying net assets acquired was allocated to goodwill, which primarily represents the value of assembled workforce along with anticipated cost savings and efficiencies associated with the integration of FCI and other intangible assets acquired that do not qualify for separate recognition. The Company is in the process of completing its analysis of the fair value of the net assets acquired through the use of independent valuations and management’s estimates. Since the following information is based on preliminary assessments made by management as of March 31, 2016, the acquisition accounting for FCI is subject to final adjustment and it is possible that the final assessment of values may differ from this preliminary assessment. The following table summarizes the preliminary assessment of the estimated fair values of the identifiable assets acquired and liabilities assumed, net of cash acquired, as of the date of acquisition of January 8, 2016. Accounts receivable $ Inventories Other current assets Land and depreciable assets Goodwill Intangible assets Other long-term assets Assets acquired Accounts payable Other current liabilities Accrued pension benefit obligations and other long-term liabilities Liabilities assumed Net assets acquired $ Of the $252.0 of acquired intangible assets, $133.8 was assigned to indefinite-lived trade names which are not subject to amortization. The remaining $118.2 of finite-lived acquired intangible assets is comprised of $53.2, $57.0 and $8.0 assigned to proprietary technology, customer relationships and backlog, respectively, all of which are subject to amortization. The finite-lived acquired intangible assets have a total weighted average useful life of approximately 10 years. The proprietary technology, customer relationships and backlog have a weighted average useful life of 9 years, 12 years and 0.25 years, respectively. These finite-lived intangible assets will be amortized based upon the underlying pattern of economic benefit as reflected by the future net cash inflows. The entire amount of goodwill was assigned to the Interconnect Products and Assemblies segment, of which approximately $91.9 is expected to be deductible for tax purposes. Pro Forma Financial Information The following table summarizes the unaudited pro forma combined financial information assuming that the FCI acquisition had occurred on January 1, 2015, and its results had been included in our financial results for the full three months ended March 31, 2016 and 2015. The pro forma amounts are based upon available information and reflect a reasonable estimate of the effects of the FCI acquisition for the periods presented on the basis set forth herein. The following unaudited pro forma financial information is presented for informational purposes only and does not purport to represent what the financial position or results of operations would have been had the FCI acquisition in fact occurred on the date assumed, nor is it necessarily indicative of the results that may be expected in future periods. Three months ended March 31, Pro forma: 2016 2015 Net sales $ $ Net income attributable to Amphenol Corporation Net income per common share - Diluted The unaudited pro forma Net income attributable to Amphenol Corporation has been calculated using actual historical information and is adjusted for certain pro forma adjustments based on the assumption that the FCI acquisition and the application of fair value adjustments to intangible assets occurred on January 1, 2015. For the three months ended March 31, 2016, the pro forma adjustments, net of tax, reflect the acquisition-related expenses of $27.3 included in the reported results, but excluded from the pro forma amounts above due to their nonrecurring nature. For the three months ended March 31, 2015, the pro forma adjustments, net of tax, reflect: (a) amortization expense related to the acquired intangible assets of $2.2 that was not reflected in the historical results, but has been included in the pro forma amounts, (b) interest income of approximately $2.9 earned on the cash, cash equivalents and short-term investments used to fund the FCI acquisition that was included in the historical results, but are excluded from the pro forma amounts, and (c) other income of $3.8 that was included in the historical results of FCI, but excluded from the pro forma amounts due to its nonrecurring nature. Other Acquisitions The Company is in the process of completing its analysis of fair value of the assets acquired and liabilities assumed related to its 2015 acquisitions and anticipates that the final assessment of values will not differ materially from the preliminary assessment. The 2015 acquisitions were not material to the Company either individually or in the aggregate. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Other Intangible Assets | |
Goodwill and Other Intangible Assets | Note 12 — Goodwill and Other Intangible Assets The changes in the carrying amount of goodwill by segment were as follows: Interconnect Products and Cable Products and Assemblies Solutions Total Goodwill at December 31, 2015 $ $ $ Acquisition-related — Foreign currency translation — Goodwill at March 31, 2016 $ $ $ The increase in goodwill, net of foreign currency translation, during the first three months of 2016 is primarily due to the acquisition of FCI on January 8, 2016, which is included in the Interconnect Products and Assemblies segment. Other than goodwill and indefinite-lived trade name intangible assets with a value of approximately $186.1 and $52.3 as of March 31, 2016 and December 31, 2015, respectively, the Company’s intangible assets are subject to amortization. A summary of the Company’s amortizable intangible assets as of March 31, 2016 and December 31, 2015 is as follows: March 31, 2016 December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount 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, 11 years, 8 years and 1 year, respectively, for an aggregate weighted average useful life of approximately 10 years at March 31, 2016. 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 March 31, 2016 and 2015 was approximately $19.7 and $8.4, respectively. As of March 31, 2016, amortization expense estimated for the remainder of 2016 is approximately $35.1 and for each of the next five fiscal years is approximately $46.5 in 2017, $42.6 in 2018, $40.2 in 2019, $35.1 in 2020 and $29.4 in 2021. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2016 | |
Debt | |
Debt | Note 13—Debt The Company’s debt consists of the following: March 31, 2016 December 31, 2015 Carrying Amount Approximate Fair Value Carrying Amount Approximate Fair Value Revolving Credit Facility (maximum aggregate principal amount of $2,000.0 and $1,500.0 as of March 31, 2016 and December 31, 2015, respectively) $ — $ — $ — $ — $1,500.0 Commercial Paper Program 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 Less deferred debt issuance costs ) — ) — Total debt Less current portion Total long-term debt $ $ $ $ Revolving Credit Facility On March 1, 2016, the Company replaced its $1,500.0 unsecured credit facility (the “2010 Revolving Credit Facility”) with a new $2,000.0 unsecured credit facility (the “2016 Revolving Credit Facility” or “Revolving Credit Facility”). The 2016 Revolving Credit Facility, which matures March 2021, increases the aggregate commitments by $500.0 and gives the Company the ability to borrow at a spread over LIBOR. The Company intends to utilize the new credit facility for general corporate purposes. At March 31, 2016, there were no borrowings under the 2016 Revolving Credit Facility. The 2016 Revolving Credit Facility requires payment of certain annual agency and commitment fees and requires that the Company satisfy certain financial covenants. At March 31, 2016, the Company was in compliance with the financial covenants under the 2016 Revolving Credit Facility. Commercial Paper Program The Company has a commercial paper program (the “Program”) pursuant to which the Company 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 is rated A-2 by Standard & Poor’s and P-2 by Moody’s and is backstopped by the Revolving Credit Facility. As of March 31, 2016, the maximum aggregate principal amount of the Commercial Paper outstanding under the Program at any time is $1,500.0, which was increased to $2,000.0 effective April 1, 2016. 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 14). The average interest rate on the Commercial Paper as of March 31, 2016 was 0.85%. 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 14). |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Measurements | |
Fair Value Measurements | Note 14—Fair Value Measurements Fair value is 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 March 31, 2016 and December 31, 2015 are as follows: Fair Value Measurements Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) March 31, 2016: Short-term investments $ $ $ — $ — Forward contracts ) — ) — Total $ $ $ ) $ — December 31, 2015: 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 three month period ended March 31, 2016 and 2015 was not material. The fair value of the forward contracts are recorded within Other current assets, Intangibles and other long-term assets, Other accrued expenses or Accrued pension benefit obligations and other long-term liabilities in the accompanying Condensed Consolidated Balance Sheets, depending on their value and remaining contractual period. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Taxes | |
Income Taxes | Note 15—Income Taxes The provision for income taxes for the first quarter of 2016 and 2015 was at an effective rate of 28.7% and 26.5%, respectively. Excluding the net impact of acquisition-related expenses incurred in the first quarter of 2016, the effective tax rate in the first quarter of 2016 was 26.5%. The Company operates 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 March 31, 2016, the amount of the liability for unrecognized tax benefits which if recognized would impact the effective tax rate, was approximately $129.1, 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 $2.2. |
Basis of Presentation and Pri23
Basis of Presentation and Principles of Consolidation (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Basis of Presentation and Principles of Consolidation | |
Reclassification | Reclassification 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. The Company has reclassified the prior period balance for the three months ended March 31, 2015 to reflect such change. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Inventories | |
Schedule of Inventories | March 31, 2016 December 31, 2015 Raw materials and supplies $ $ Work in process Finished goods $ $ |
Reportable Business Segments (T
Reportable Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Reportable Business Segments | |
Schedule of segment reporting information by segment | Interconnect Products and Assemblies Cable Products and Solutions Total Three months ended March 31, 2016 2015 2016 2015 2016 2015 Net sales: External $ $ $ $ $ $ Intersegment Segment operating income |
Schedule of the reconciliation of segment operating income to consolidated income before income taxes | Three months ended March 31, 2016 2015 Segment operating income $ $ Interest expense ) ) Other income, net Stock-based compensation expense ) ) Acquisition-related expenses ) — Other costs ) ) Income before income taxes $ $ |
Changes in Equity and Noncont26
Changes in Equity and Noncontrolling Interests (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Changes in Equity and Noncontrolling Interests | |
Rollforward of consolidated changes in equity | A rollforward of consolidated changes in equity for the three months ended March 31, 2016 is as follows: Amphenol Corporation Shareholders Common Stock Accumulated Other Shares (in millions) Amount Additional Paid- In Capital Retained Earnings Comprehensive Loss Treasury Stock Noncontrolling Interests Total Equity Balance as of December 31, 2015 $ $ $ $ ) $ — $ $ 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 March 31, 2016 $ $ $ $ ) $ — $ $ A rollforward of consolidated changes in equity for the three months ended March 31, 2015 is as follows: Amphenol Corporation Shareholders Common Stock Accumulated 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 ) ) Purchase of treasury stock ) ) Retirement of treasury stock ) ) — Stock options exercised, including tax benefit Dividends declared ) ) Stock-based compensation expense Balance as of March 31, 2015 $ $ $ $ ) $ — $ $ |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share | |
Schedule of the reconciliation of basic weighted average common shares outstanding to diluted weighted average common shares outstanding | A reconciliation of the basic weighted average common shares outstanding to diluted weighted average common shares outstanding for the three months ended March 31, 2016 and 2015 is as follows (dollars and shares in millions): Three months ended March 31, 2016 2015 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) | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 $ $ Options granted Options exercised ) Options forfeited ) Options outstanding at March 31, 2016 Vested and non-vested options expected to vest at March 31, 2016 $ $ Exercisable options at March 31, 2016 $ $ |
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, 2016 $ Options granted Options vested ) Options forfeited ) Non-vested options at March 31, 2016 |
Summary of activity in the option plans | Three months ended March 31, 2016 2015 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, 2016 $ Restricted shares granted — — — Restricted shares outstanding at March 31, 2016 |
Benefit Plans and Other Postr29
Benefit Plans and Other Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Benefit Plans and Other Postretirement Benefits | |
Schedule of components of net pension expense | Pension Benefits Other Postretirement Benefits Three months ended March 31, 2016 2015 2016 2015 Service cost $ $ $ — $ — Interest cost Expected return on plan assets ) ) — — Amortization of prior service cost — — Amortization of net actuarial losses Net pension expense $ $ $ $ |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Acquisitions | |
Purchase price allocation | The following table summarizes the preliminary assessment of the estimated fair values of the identifiable assets acquired and liabilities assumed, net of cash acquired, as of the date of acquisition of January 8, 2016. Accounts receivable $ Inventories Other current assets Land and depreciable assets Goodwill Intangible assets Other long-term assets Assets acquired Accounts payable Other current liabilities Accrued pension benefit obligations and other long-term liabilities Liabilities assumed Net assets acquired $ |
Pro forma financial information | Three months ended March 31, Pro forma: 2016 2015 Net sales $ $ Net income attributable to Amphenol Corporation Net income per common share - Diluted |
Goodwill and Other Intangible31
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Other Intangible Assets | |
Schedule of changes in the carrying amount of goodwill by segment | Interconnect Products and Cable Products and Assemblies Solutions Total Goodwill at December 31, 2015 $ $ $ Acquisition-related — Foreign currency translation — Goodwill at March 31, 2016 $ $ $ |
Summary of the Company's amortizable intangible assets | March 31, 2016 December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ $ $ $ $ $ Proprietary technology License agreements — — Backlog and other Total $ $ $ $ $ $ |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt | |
Schedule of Debt | March 31, 2016 December 31, 2015 Carrying Amount Approximate Fair Value Carrying Amount Approximate Fair Value Revolving Credit Facility (maximum aggregate principal amount of $2,000.0 and $1,500.0 as of March 31, 2016 and December 31, 2015, respectively) $ — $ — $ — $ — $1,500.0 Commercial Paper Program 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 Less deferred debt issuance costs ) — ) — Total debt Less current portion Total long-term debt $ $ $ $ |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Measurements | |
Fair values of financial and non-financial assets and liabilities | Fair Value Measurements Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) March 31, 2016: Short-term investments $ $ $ — $ — Forward contracts ) — ) — Total $ $ $ ) $ — December 31, 2015: Short-term investments $ $ $ — $ — Forward contracts — — Total $ $ $ $ — |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Inventories | ||
Raw materials and supplies | $ 317 | $ 282.4 |
Work in process | 321.7 | 290.5 |
Finished goods | 294.8 | 278.9 |
Inventories | $ 933.5 | $ 851.8 |
Reportable Business Segments (D
Reportable Business Segments (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2016USD ($)segment | Mar. 31, 2015USD ($) | |
Reportable Business Segments | ||
Number of reportable business segments | segment | 2 | |
Segment reporting information | ||
Net sales | $ 1,451.2 | $ 1,327.1 |
Segment operating income | 239.4 | 260.2 |
Operating Segment | ||
Segment reporting information | ||
Net sales | 1,451.2 | 1,327.1 |
Segment operating income | 292.3 | 281.2 |
Operating Segment | Interconnect Products and Assemblies | ||
Segment reporting information | ||
Net sales | 1,367.8 | 1,242.7 |
Segment operating income | 281.2 | 271 |
Operating Segment | Cable Products and Solutions | ||
Segment reporting information | ||
Net sales | 83.4 | 84.4 |
Segment operating income | 11.1 | 10.2 |
Intersegment | ||
Segment reporting information | ||
Net sales | 7.9 | 7.4 |
Intersegment | Interconnect Products and Assemblies | ||
Segment reporting information | ||
Net sales | 1.6 | 2.3 |
Intersegment | Cable Products and Solutions | ||
Segment reporting information | ||
Net sales | $ 6.3 | $ 5.1 |
Reportable Business Segments, R
Reportable Business Segments, Reconciliation of Segment Operating Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Reconciliation of segment operating income to consolidated income before income taxes | ||
Segment operating income | $ 239.4 | $ 260.2 |
Interest expense | (18.1) | (17) |
Stock-based compensation expense | (11.6) | (10.1) |
Acquisition-related expenses | (30.3) | |
Income before income taxes | 222.3 | 247.3 |
Operating Segment | ||
Reconciliation of segment operating income to consolidated income before income taxes | ||
Segment operating income | 292.3 | 281.2 |
Segment Reconciliation Items | ||
Reconciliation of segment operating income to consolidated income before income taxes | ||
Interest expense | (18.1) | (17) |
Other income, net | 1 | 4.1 |
Stock-based compensation expense | (11.6) | (10.1) |
Acquisition-related expenses | (30.3) | |
Other costs | (11) | (10.9) |
Income before income taxes | $ 222.3 | $ 247.3 |
Changes in Equity and Noncont37
Changes in Equity and Noncontrolling Interests (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Increase (Decrease) In Shareholders' Equity | ||
Balance at beginning of period | $ 3,278.4 | $ 2,937.9 |
Net income | 158.4 | 181.8 |
Other comprehensive income (loss) | 52.4 | (65.7) |
Distributions to shareholders of noncontrolling interests | (4) | (3.2) |
Purchase of treasury stock | (49.2) | (62.2) |
Stock options exercised, including tax benefit | 19.6 | 19.3 |
Dividends declared | (43) | (38.8) |
Stock-based compensation expense | 11.6 | 10.1 |
Balance at end of period | $ 3,424.2 | $ 2,979.2 |
Common Stock | ||
Increase (Decrease) In Shareholders' Equity | ||
Balance (in shares) | 308 | 309.9 |
Balance at beginning of period | $ 0.3 | $ 0.3 |
Retirement of treasury stock (in shares) | (1) | (1.1) |
Stock options exercised, including tax benefit (in shares) | 0.7 | 0.6 |
Balance (in shares) | 307.7 | 309.4 |
Balance at end of period | $ 0.3 | $ 0.3 |
Additional Paid in Capital | ||
Increase (Decrease) In Shareholders' Equity | ||
Balance at beginning of period | 783.3 | 659.4 |
Stock options exercised, including tax benefit | 19.6 | 19.3 |
Stock-based compensation expense | 11.6 | 10.1 |
Balance at end of period | 814.5 | 688.8 |
Retained Earnings | ||
Increase (Decrease) In Shareholders' Equity | ||
Balance at beginning of period | 2,804.4 | 2,453.5 |
Net income | 156.6 | 179.8 |
Retirement of treasury stock | (49.2) | (62.2) |
Dividends declared | (43) | (38.8) |
Balance at end of period | 2,868.8 | 2,532.3 |
Accumulated Other Comprehensive Loss | ||
Increase (Decrease) In Shareholders' Equity | ||
Balance at beginning of period | (349.5) | (205.8) |
Other comprehensive income (loss) | 52.1 | (65.7) |
Balance at end of period | (297.4) | (271.5) |
Treasury Stock | ||
Increase (Decrease) In Shareholders' Equity | ||
Purchase of treasury stock | (49.2) | (62.2) |
Retirement of treasury stock | 49.2 | 62.2 |
Noncontrolling Interests | ||
Increase (Decrease) In Shareholders' Equity | ||
Balance at beginning of period | 39.9 | 30.5 |
Net income | 1.8 | 2 |
Other comprehensive income (loss) | 0.3 | |
Distributions to shareholders of noncontrolling interests | (4) | (3.2) |
Balance at end of period | $ 38 | $ 29.3 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share | ||
Net income attributable to Amphenol Corporation shareholders (in dollars) | $ 156.6 | $ 179.8 |
Basic weighted average common shares outstanding | 307.6 | 310 |
Effect of dilutive stock options (in shares) | 6.6 | 8 |
Diluted weighted average common shares outstanding | 314.2 | 318 |
Earnings per share attributable to Amphenol Corporation shareholders: | ||
Basic (in dollars per share) | $ 0.51 | $ 0.58 |
Diluted (in dollars per share) | $ 0.50 | $ 0.57 |
Anti-dilutive stock options, excluded from the computations of earning per share | 11 | 3.1 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | |
Stock-Based Compensation | ||||
Expense incurred for stock-based compensation plans | $ 11.6 | $ 10.1 | ||
Expense incurred for stock-based compensation plans, net of tax | $ 8.8 | 7.6 | ||
2000 Employee Option Plan | ||||
Stock-Based Compensation | ||||
Number of additional stock options that can be granted (in shares) | 0 | |||
Options exercisable period | 10 years | |||
2009 Employee Option Plan | ||||
Stock-Based Compensation | ||||
Common Stock reserved for issuance | 58,000,000 | |||
Shares available for the granting of additional stock options | 18,714,960 | |||
Options exercisable period | 10 years | |||
Options ratable vesting period | 5 years | |||
2004 Directors Option Plan | ||||
Stock-Based Compensation | ||||
Shares available for the granting of additional stock options | 140,000 | |||
Options exercisable period | 10 years | |||
Number of additional stock options expected to be granted (in shares) | 0 | |||
Stock Options | ||||
Stock option activity | ||||
Options outstanding at the beginning of the period (in shares) | 31,136,475 | |||
Options granted (in shares) | 245,000 | |||
Options exercised (in shares) | (650,840) | |||
Options forfeited (in shares) | (48,680) | |||
Options outstanding at the end of the period (in shares) | 30,681,955 | 31,136,475 | 31,136,475 | |
Vested and non-vested options expected to vest at the end of the period (in shares) | 28,686,910 | |||
Exercisable at the end of the period (in shares) | 13,206,995 | |||
Weighted Average Exercise Price | ||||
Weighted average exercise price, options outstanding at the beginning of the period (in dollars per share) | $ 37.62 | |||
Weighted average exercise price, options outstanding at the end of the period (in dollars per share) | 37.97 | $ 37.62 | $ 37.62 | |
Weighted average exercise price, vested and non-vested options expected to vest (in dollars per share) | 37.34 | |||
Weighted average exercise price, exercisable (in dollars per share) | $ 27.03 | |||
Weighted Average Remaining Contractual Term | ||||
Weighted average remaining contractual term of options outstanding | 6 years 9 months | 6 years 11 months 1 day | ||
Weighted average remaining contractual term of options vested options and non-vested expected to vest | 6 years 7 months 28 days | |||
Weighted average remaining contractual term of options exercisable | 5 years 1 month 24 days | |||
Aggregate Intrinsic Value | ||||
Aggregate intrinsic value of options outstanding | $ 609.9 | $ 491 | $ 491 | |
Aggregate intrinsic value of options, vested and non-vested options expected to vest | 588.3 | |||
Aggregate intrinsic value of options exercisable | $ 406.6 | |||
Status of the Company's non-vested options and changes during the year | ||||
Non-vested options at the beginning of the period (in shares) | 17,323,040 | |||
Non-vested options, options granted (in shares) | 245,000 | |||
Non-vested options, options vested (in shares) | (44,400) | |||
Non-vested options, options forfeited (in shares) | (48,680) | |||
Non-vested options at the end of the period (in shares) | 17,474,960 | 17,323,040 | 17,323,040 | |
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 | |||
Weighted average fair value at grant date, options granted (in dollars per share) | 6.98 | |||
Weighted average fair value at grant date, options vested (in dollars per share) | 9.82 | |||
Weighted average fair value at grant date, options forfeited (in dollars per share) | 8.38 | |||
Weighted average fair value at the grant date, options outstanding at the end of the period (in dollars per share) | $ 8.22 | $ 8.24 | $ 8.24 | |
Fair Value at Grant Date | ||||
Total intrinsic value of stock options exercised | $ 20.7 | 25.9 | ||
Total fair value of stock options vested | 0.4 | $ 0.3 | ||
Total compensation cost related to non-vested options not yet recognized | $ 97.4 | |||
Weighted average expected amortization period | 3 years 2 months 12 days | |||
Restricted Shares | ||||
Fair Value at Grant Date | ||||
Total compensation cost related to non-vested restricted shares not yet recognized | $ 0.1 | |||
Weighted average expected amortization period | 1 month 24 days | |||
Restricted Shares | 2012 Directors Restricted Stock Plan | ||||
Stock-Based Compensation | ||||
Shares available for the granting of additional stock options | 153,974 | |||
Restricted share activity | ||||
Restricted shares outstanding at the beginning of the period (in shares) | 17,256 | |||
Restricted shares outstanding at the end of the period (in shares) | 17,256 | 17,256 | 17,256 | |
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 | |||
Fair value at the grant date, restricted shares outstanding at the end of the period (in dollars per share) | $ 57.97 | $ 57.97 | $ 57.97 | |
Weighted Average Remaining Amortization Term (in years) | 1 month 24 days | 4 months 21 days |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | ||||
Jan. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Apr. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2015 | |
Shareholders' Equity | ||||||
Quarterly dividend approved by Board prior to payment, per share (in dollars per share) | $ 0.14 | $ 0.125 | ||||
Dividends paid | $ 43.2 | $ 77.5 | ||||
Dividends declared | $ 43 | $ 38.8 | ||||
2015 Stock Repurchase Program | ||||||
Shareholders' Equity | ||||||
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 | 1 | |||||
Payments for shares repurchased under the current open-market stock repurchase program (in dollars) | $ 49.2 | |||||
Number of shares remaining that maybe repurchased under the stock repurchase program | 4.5 |
Benefit Plans and Other Postr41
Benefit Plans and Other Postretirement Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
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 | $ 1.2 | $ 1.2 |
Pension Benefits | ||
Summary of the defined benefit pension plans and other post-retirement benefits | ||
Service cost | 2.3 | 2.3 |
Interest cost | 5.7 | 5.8 |
Expected return on plan assets | (7.5) | (7.3) |
Amortization of prior service cost | 0.6 | 0.6 |
Amortization of net actuarial losses | 6.3 | 6.5 |
Net pension expense | 7.4 | 7.9 |
U.S. plans, Pension Benefits | ||
Summary of the defined benefit pension plans and other post-retirement benefits | ||
Estimated cash contribution to the Plans in 2016 based on current actuarial calculations | 22 | |
Other Postretirement Benefits | ||
Summary of the defined benefit pension plans and other post-retirement benefits | ||
Interest cost | 0.1 | 0.1 |
Amortization of net actuarial losses | 0.2 | 0.1 |
Net pension expense | $ 0.3 | $ 0.2 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Millions | Jan. 08, 2016 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 |
Acquisitions | ||||
Purchase price, net of cash acquired | $ 1,185.8 | $ 76.1 | ||
Acquisition-related expenses | 30.3 | |||
Foreign exchange negative impact on net sales | $ 19.3 | |||
Net sales decreased, compared to prior year quarter, excluding the impact of foreign exchange and acquisitions (as a percent) | 1.00% | |||
Purchase price allocation | ||||
Goodwill | $ 3,659.8 | $ 2,692.9 | ||
Finite-lived acquired intangible assets weighted-average useful life | 10 years | |||
Proprietary technology | ||||
Purchase price allocation | ||||
Finite-lived acquired intangible assets weighted-average useful life | 11 years | |||
Customer relationships | ||||
Purchase price allocation | ||||
Finite-lived acquired intangible assets weighted-average useful life | 10 years | |||
FCI Asia Pte Ltd ("FCI") | ||||
Acquisitions | ||||
Purchase price, net of cash acquired | $ 1,178.6 | |||
Acquisition-related expenses | $ 30.3 | |||
Acquisition-related expenses, net of tax | $ 27.3 | |||
Purchase price allocation | ||||
Accounts receivable | 97.1 | |||
Inventories | 65.7 | |||
Other current assets | 16.7 | |||
Land and depreciable assets | 78.2 | |||
Goodwill | 937.8 | |||
Intangible assets | 252 | |||
Other long-term assets | 13 | |||
Assets acquired | 1,460.5 | |||
Accounts payable | 61.6 | |||
Other current liabilities | 58.7 | |||
Accrued pension benefit obligations and other long-term liabilities | 161.6 | |||
Liabilities assumed | 281.9 | |||
Net assets acquired | 1,178.6 | |||
Finite-lived acquired intangibles | $ 118.2 | |||
Finite-lived acquired intangible assets weighted-average useful life | 10 years | |||
Goodwill deductible for tax purposes | $ 91.9 | |||
FCI Asia Pte Ltd ("FCI") | Proprietary technology | ||||
Purchase price allocation | ||||
Finite-lived acquired intangibles | $ 53.2 | |||
Finite-lived acquired intangible assets weighted-average useful life | 9 years | |||
FCI Asia Pte Ltd ("FCI") | Customer relationships | ||||
Purchase price allocation | ||||
Finite-lived acquired intangibles | $ 57 | |||
Finite-lived acquired intangible assets weighted-average useful life | 12 years | |||
FCI Asia Pte Ltd ("FCI") | Backlog | ||||
Purchase price allocation | ||||
Finite-lived acquired intangibles | $ 8 | |||
Finite-lived acquired intangible assets weighted-average useful life | 3 months | |||
FCI Asia Pte Ltd ("FCI") | Tradenames | ||||
Purchase price allocation | ||||
Trade names not subject to amortization | $ 133.8 |
Acquisitions, Pro Forma Financi
Acquisitions, Pro Forma Financial Information (Details) - FCI Asia Pte Ltd ("FCI") - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Pro forma adjustments | ||
Net sales | $ 1,460.9 | $ 1,468.5 |
Net income attributable to Amphenol Corporation | $ 184.2 | $ 188.2 |
Net income per common share - Diluted | $ 0.59 | $ 0.59 |
Acquisition-related costs included in reported results, but excluded from pro forma amounts | ||
Pro forma adjustments | ||
Net income attributable to Amphenol Corporation | $ 27.3 | |
Amortization expense related to acquired intangible assets not reflected in historical results, but included in pro forma amounts | ||
Pro forma adjustments | ||
Net income attributable to Amphenol Corporation | $ 2.2 | |
Interest income of funds used to fund the acquisition included in historical results, but excluded from pro forma amounts | ||
Pro forma adjustments | ||
Net income attributable to Amphenol Corporation | 2.9 | |
Other income included in historical results, but excluded from pro forma amounts | ||
Pro forma adjustments | ||
Net income attributable to Amphenol Corporation | $ 3.8 |
Goodwill and Other Intangible44
Goodwill and Other Intangible Asset (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Goodwill. | |
Goodwill, Beginning Balance | $ 2,692.9 |
Acquisition-related | 943.6 |
Foreign currency translation | 23.3 |
Goodwill, Ending Balance | 3,659.8 |
Interconnect Products and Assemblies | |
Goodwill. | |
Goodwill, Beginning Balance | 2,569.2 |
Acquisition-related | 943.6 |
Foreign currency translation | 23.3 |
Goodwill, Ending Balance | 3,536.1 |
Cable Products and Solutions | |
Goodwill. | |
Goodwill, Beginning Balance | 123.7 |
Goodwill, Ending Balance | $ 123.7 |
Goodwill and Other Intangible45
Goodwill and Other Intangible Asset, Amortization (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Goodwill and Other Intangible Assets | |||
Indefinite-lived trade name intangible asset | $ 186.1 | $ 52.3 | |
Summary of the Company's amortizable intangible assets | |||
Gross Carrying Amount | 514.5 | 395.1 | |
Accumulated Amortization | 198.7 | 178.7 | |
Net Carrying Amount | $ 315.8 | 216.4 | |
Weighted average useful lives of acquired amortizable intangible assets | 10 years | ||
Amortization expense | $ 19.7 | $ 8.4 | |
Amortization expense estimated for each of the next five fiscal years | |||
Remainder of 2016 | 35.1 | ||
2,017 | 46.5 | ||
2,018 | 42.6 | ||
2,019 | 40.2 | ||
2,020 | 35.1 | ||
2,021 | 29.4 | ||
Customer relationships | |||
Summary of the Company's amortizable intangible assets | |||
Gross Carrying Amount | 373.8 | 315.6 | |
Accumulated Amortization | 131.7 | 122.6 | |
Net Carrying Amount | $ 242.1 | 193 | |
Weighted average useful lives of acquired amortizable intangible assets | 10 years | ||
Proprietary technology | |||
Summary of the Company's amortizable intangible assets | |||
Gross Carrying Amount | $ 106.7 | 53.8 | |
Accumulated Amortization | 33.5 | 30.9 | |
Net Carrying Amount | $ 73.2 | 22.9 | |
Weighted average useful lives of acquired amortizable intangible assets | 11 years | ||
License agreements | |||
Summary of the Company's amortizable intangible assets | |||
Gross Carrying Amount | $ 6 | 6 | |
Accumulated Amortization | $ 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 | $ 28 | 19.7 | |
Accumulated Amortization | 27.5 | 19.2 | |
Net Carrying Amount | $ 0.5 | $ 0.5 | |
Weighted average useful lives of acquired amortizable intangible assets | 1 year |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Apr. 01, 2016 | Dec. 31, 2015 | |
Debt | |||
Less deferred debt issuance costs | $ (15.3) | $ (13.3) | |
Total debt, Carrying Amount | 2,866.5 | 2,813.5 | |
Less current portion | 0.3 | 0.3 | |
Total long-term debt | 2,866.2 | 2,813.2 | |
Total debt, Approximate Fair Value | 2,919 | 2,828.5 | |
Less short-term debt, Approximate Fair Value | 0.3 | 0.3 | |
Long-term debt, Approximate Fair Value | 2,918.7 | 2,828.2 | |
1.55% Senior Notes due September 2017 | |||
Debt | |||
Total debt, Carrying Amount | 374.8 | 374.8 | |
Total debt, Approximate Fair Value | $ 374.4 | $ 373.2 | |
Stated interest rate (as a percent) | 1.55% | 1.55% | |
2.55% Senior Notes due January 2019 | |||
Debt | |||
Total debt, Carrying Amount | $ 749.3 | $ 749.2 | |
Total debt, Approximate Fair Value | $ 755 | $ 750.1 | |
Stated interest rate (as a percent) | 2.55% | 2.55% | |
3.125% Senior Notes due September 2021 | |||
Debt | |||
Total debt, Carrying Amount | $ 374.7 | $ 374.7 | |
Total debt, Approximate Fair Value | $ 381.3 | $ 367.7 | |
Stated interest rate (as a percent) | 3.125% | 3.125% | |
4.00% Senior Notes due February 2022 | |||
Debt | |||
Total debt, Carrying Amount | $ 499.3 | $ 499.2 | |
Total debt, Approximate Fair Value | $ 524.6 | $ 508.6 | |
Stated interest rate (as a percent) | 4.00% | 4.00% | |
Revolving Credit Facility | |||
Debt | |||
Maximum borrowing capacity | $ 2,000 | $ 1,500 | |
Revolving Credit Facility | 2016 Revolving Credit Facility | |||
Debt | |||
Increases in aggregate commitments | 500 | ||
Commercial Paper | |||
Debt | |||
Total debt, Carrying Amount | 877.1 | 823.9 | |
Total debt, Approximate Fair Value | 877.1 | 823.9 | |
Maximum borrowing capacity | $ 1,500 | $ 2,000 | 1,500 |
Maximum maturity term | 397 days | ||
Average Interest Rate (as a percent) | 0.85% | ||
Senior Notes | |||
Debt | |||
Redemption price as a percentage of principal amount | 100.00% | ||
Notes payable to foreign banks and other debt | |||
Debt | |||
Total debt, Carrying Amount | $ 6.6 | 5 | |
Total debt, Approximate Fair Value | $ 6.6 | $ 5 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Fair value of assets and liabilities measured on recurring basis | ||
Short-term investments | $ 26.6 | $ 23.2 |
Forward contracts | (3.1) | 3.3 |
Total | 23.5 | 26.5 |
Fair value measurements recurring basis | Level 1 | ||
Fair value of assets and liabilities measured on recurring basis | ||
Short-term investments | 26.6 | 23.2 |
Total | 26.6 | 23.2 |
Fair value measurements recurring basis | Level 2 | ||
Fair value of assets and liabilities measured on recurring basis | ||
Forward contracts | (3.1) | 3.3 |
Total | $ (3.1) | $ 3.3 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Taxes | ||
Effective tax rate (as a percent) | 28.70% | 26.50% |
Effective tax rate excluding the net impact of acquisition-related expenses (as a percent) | 26.50% | |
Unrecognized tax benefits, anticipated adjustment for changing facts and circumstances, over the next twelve month period | $ 2.2 | |
Accrued pension benefit obligations and other long-term liabilities | ||
Income Taxes | ||
Liability for unrecognized tax benefits, which if recognized would impact the effective tax rate | $ 129.1 |