Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 28, 2017 | |
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, 2017 | |
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 | 305,615,575 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Current Assets: | ||
Cash and cash equivalents | $ 1,242.9 | $ 1,034.6 |
Short-term investments | 36.8 | 138.6 |
Total cash, cash equivalents and short-term investments | 1,279.7 | 1,173.2 |
Accounts receivable, less allowance for doubtful accounts of $19.2 and $23.6, respectively | 1,318.3 | 1,349.3 |
Inventories | 962.3 | 928.9 |
Other current assets | 162.1 | 139.8 |
Total current assets | 3,722.4 | 3,591.2 |
Property, plant and equipment, less accumulated depreciation of $1,052.0 and $1,007.2, respectively | 726.9 | 711.4 |
Goodwill | 3,748.7 | 3,678.8 |
Intangibles, net and other long-term assets | 509.4 | 517.3 |
Total assets | 8,707.4 | 8,498.7 |
Current Liabilities: | ||
Accounts payable | 682.4 | 678.2 |
Accrued salaries, wages and employee benefits | 123.2 | 131.8 |
Accrued income taxes | 117.7 | 125.1 |
Accrued dividends | 48.9 | 49.3 |
Other accrued expenses | 236 | 275.6 |
Current portion of long-term debt | 375.1 | 375.2 |
Total current liabilities | 1,583.3 | 1,635.2 |
Long-term debt, less current portion | 2,862.1 | 2,635.5 |
Accrued pension and postretirement benefit obligations | 288.8 | 288.4 |
Other long-term liabilities | 222.1 | 216.5 |
Equity: | ||
Common stock | 0.3 | 0.3 |
Additional paid-in capital | 1,056.7 | 1,020.9 |
Retained earnings | 3,049.5 | 3,122.7 |
Accumulated other comprehensive loss | (402.3) | (469) |
Total shareholders' equity attributable to Amphenol Corporation | 3,704.2 | 3,674.9 |
Noncontrolling interests | 46.9 | 48.2 |
Total equity | 3,751.1 | 3,723.1 |
Total Liabilities and Equity | $ 8,707.4 | $ 8,498.7 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable, allowance for doubtful accounts | $ 19.2 | $ 23.6 |
Accumulated depreciation | $ 1,052 | $ 1,007.2 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||
Net sales | $ 1,560.1 | $ 1,451.2 |
Cost of sales | 1,044.2 | 992 |
Gross profit | 515.9 | 459.2 |
Acquisition-related expenses | 30.3 | |
Selling, general and administrative expenses | 201.8 | 189.5 |
Operating income | 314.1 | 239.4 |
Interest expense | (19.3) | (18.1) |
Other income, net | 3.6 | 1 |
Income before income taxes | 298.4 | 222.3 |
Provision for income taxes | (71.1) | (63.9) |
Net income | 227.3 | 158.4 |
Less: Net income attributable to noncontrolling interests | (2.4) | (1.8) |
Net income attributable to Amphenol Corporation | $ 224.9 | $ 156.6 |
Net income per common share - Basic (in dollars per share) | $ 0.73 | $ 0.51 |
Weighted average common shares outstanding - Basic (in shares) | 306.6 | 307.6 |
Net income per common share - Diluted (in dollars per share) | $ 0.71 | $ 0.50 |
Weighted average common shares outstanding - Diluted (in shares) | 316.4 | 314.2 |
Dividends declared per common share (in dollars per share) | $ 0.16 | $ 0.14 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net income | $ 227.3 | $ 158.4 |
Total other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustments | 62.9 | 46.1 |
Unrealized gain on cash flow hedges | 0.1 | 2.3 |
Defined benefit plan adjustment, net of tax of ($2.2) and ($2.2), respectively | 4.2 | 4 |
Total other comprehensive income, net of tax | 67.2 | 52.4 |
Total comprehensive income | 294.5 | 210.8 |
Less: Comprehensive income attributable to noncontrolling interests | (2.9) | (2.1) |
Comprehensive income attributable to Amphenol Corporation | $ 291.6 | $ 208.7 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Defined benefit plan adjustment, tax | $ (2.2) | $ (2.2) |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash from operating activities: | ||
Net income | $ 227.3 | $ 158.4 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 54.1 | 61.9 |
Stock-based compensation expense | 12.1 | 11.6 |
Excess tax benefits from stock-based compensation payment arrangements | (4.2) | |
Net change in components of working capital | (66.8) | (45.9) |
Net change in other long-term assets and liabilities | 11.1 | 12.4 |
Net cash provided by operating activities | 237.8 | 194.2 |
Cash from investing activities: | ||
Capital expenditures | (48.7) | (41) |
Proceeds from disposals of property, plant and equipment | 0.3 | 2.7 |
Purchases of short-term investments | (18.2) | (16.1) |
Sales and maturities of short-term investments | 122.1 | 13.1 |
Acquisitions, net of cash acquired | (46.6) | (1,185.8) |
Net cash provided by (used in) investing activities | 8.9 | (1,227.1) |
Cash from financing activities: | ||
Borrowings under commercial paper program, net | 225.3 | 50.8 |
Payment of costs related to debt financing | (3) | |
Proceeds from exercise of stock options | 23.7 | 14.6 |
Excess tax benefits from stock-based compensation payment arrangements | 4.2 | |
Distributions to shareholders of noncontrolling interests | (4.2) | (4) |
Purchase and retirement of treasury stock | (249.2) | (49.2) |
Dividend payments | (49.3) | (43.2) |
Net cash used in financing activities | (53.7) | (29.8) |
Effect of exchange rate changes on cash and cash equivalents | 15.3 | 12.5 |
Net change in cash and cash equivalents | 208.3 | (1,050.2) |
Cash and cash equivalents balance, beginning of period | 1,034.6 | 1,737.2 |
Cash and cash equivalents balance, end of period | 1,242.9 | 687 |
Cash paid for: | ||
Interest | 32.4 | 31.2 |
Income taxes | $ 77.4 | $ 47.6 |
Basis of Presentation and Princ
Basis of Presentation and Principles of Consolidation | 3 Months Ended |
Mar. 31, 2017 | |
Basis of Presentation and Principles of Consolidation | |
Basis of Presentation and Principles of Consolidation | AMPHENOL CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (dollars in millions, except per share data) Note 1—Basis of Presentation and Principles of Consolidation The condensed consolidated balance sheets as of March 31, 2017 and December 31, 2016, and the related condensed consolidated statements of income, condensed consolidated statements of comprehensive income, and condensed consolidated statements of cash flow for the three months ended March 31, 2017 and 2016 include the accounts of Amphenol Corporation and its subsidiaries ( “Amphenol”, the “Company”, “we”, “our”, or “us” ). 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, 2017 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, 2016 (the “2016 Annual Report”). |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2017 | |
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. (“ASU”) 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 ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date (“ASU 2015-14”), which deferred 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. Since 2014, the FASB has issued various related updates including, but not limited to, ASU 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, and ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing , which clarified the implementation guidance regarding performance obligations and licensing arrangements. The Company has developed an implementation plan, involving teams across its organization to review and implement the requirements of ASU 2014-09. We are reviewing our contracts and the related revenue streams and expect to complete our assessment in the second half of 2017. While we continue to review and evaluate this guidance and its impact on our consolidated financial statements, we currently expect many of our businesses to continue recognizing revenue on a “point-in-time” basis, while certain businesses with more customized products may require “over time” revenue recognition under the new standard. We are also in the process of reviewing our current systems, internal controls and processes, and evaluating any necessary changes to support the implementation of this new standard, which we expect to implement by the end of 2017. As permitted under the standard, the Company plans to adopt ASU 2014-09 in the first quarter of 2018 using the modified retrospective approach and to recognize the cumulative effect of existing contracts in the opening balance of retained earnings on the effective date. In February 2016, the FASB issued ASU 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 fiscal years, and interim periods within those fiscal years, 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 ASU 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. ASU 2016-09 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016, with early adoption permitted. In the first quarter of 2017, the Company adopted ASU 2016-09, which requires any excess tax benefits and tax deficiencies to be recorded as a discrete income tax item in the statement of income in the period in which they occur. For the three months ended March 31, 2017, this change resulted in the recognition of a tax benefit within the provision for income taxes . Under previous accounting guidance, this cash tax benefit would have been recorded directly to equity . Since this provision of the standard must be applied prospectively, there was no impact to prior periods. As of January 1, 2017, the Company did not have any unrecognized excess tax benefits in which the related tax deduction did not reduce income taxes payable and therefore, there was no cumulative-effect adjustment to beginning retained earnings. The ASU also eliminates the requirement to reclassify cash flows related to excess tax benefits from operating activities to financing activities in the statement of cash flows, but rather requires such excess tax benefits and deficiencies to be classified within operating activities, consistent with other cash flows related to income taxes. The Company adopted this provision prospectively, and the prior period in the statements of cash flow has not been adjusted. As permitted, the Company elected to continue its existing accounting practice of estimating forfeitures when recognizing stock-based compensation expense. Other provisions of this standard did not and are not expected to have a material impact on our consolidated financial statements. The impact of this guidance on our consolidated financial statements could result in significant fluctuations in our effective tax rate in the future, since tax expense will be impacted by the timing and intrinsic value of future stock-based compensation award exercises. Refer to Note 6 and Note 15 for further discussion on the impact of this standard. In March 2017, the FASB issued ASU 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , requiring employers to provide more details about the components of costs related to retirement benefits. Specifically, ASU 2017-07 requires employers to report the service costs for providing pensions to employees in the same line item as other employee compensation costs, while the other pension-related costs such as interest costs, amortization of pension-related costs from prior periods, and the gains or losses on plan assets, should be reported separately and outside of the subtotal of operating income. ASU 2017-07 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted only if adopted in the first quarter of the Company’s fiscal year. The Company is currently evaluating ASU 2017-07 and its impact on its consolidated financial statements. The Company will adopt this new standard in the first quarter of 2018. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2017 | |
Inventories | |
Inventories | Note 3—Inventories Inventories consist of: March 31, December 31, 2017 2016 Raw materials and supplies $ 335.7 $ 319.8 Work in process 330.4 313.4 Finished goods 296.2 295.7 $ 962.3 $ 928.9 |
Reportable Business Segments
Reportable Business Segments | 3 Months Ended |
Mar. 31, 2017 | |
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 organizes its reportable business segments based upon similar economic characteristics and business groupings of products, services and customers. These reportable business segments are determined based upon how the Company reviews its businesses, assesses operating performance and makes investing and resource allocation decisions. 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 2016 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, 2017 and 2016 are as follows: Interconnect Products Cable Products Total Reportable and Assemblies and Solutions Business Segments Three Months Ended March 31: 2017 2016 2017 2016 2017 2016 Net sales: External $ 1,463.5 $ 1,367.8 $ 96.6 $ 83.4 $ 1,560.1 $ 1,451.2 Intersegment 2.3 1.6 10.2 6.3 12.5 7.9 Segment operating income 323.9 281.2 13.7 11.1 337.6 292.3 A reconciliation of segment operating income to consolidated income before income taxes for the three months ended March 31, 2017 and 2016 is summarized as follows: Three Months Ended March 31, 2017 2016 Segment operating income $ 337.6 $ 292.3 Interest expense (19.3) (18.1) Other income, net 3.6 1.0 Stock-based compensation expense (12.1) (11.6) Acquisition-related expenses — (30.3) Other operating expenses (11.4) (11.0) Income before income taxes $ 298.4 $ 222.3 |
Changes in Equity and Noncontro
Changes in Equity and Noncontrolling Interests | 3 Months Ended |
Mar. 31, 2017 | |
Equity | |
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, 2017 is as follows: Amphenol Corporation Shareholders Accumulated Common Stock Other Shares Additional Retained Comprehensive Treasury Noncontrolling Total (in millions) Amount Paid-In Capital Earnings Loss Stock Interests Equity Balance as of December 31, 2016 308.3 $ 0.3 $ 1,020.9 $ 3,122.7 $ (469.0) $ — $ 48.2 $ 3,723.1 Net income 224.9 2.4 227.3 Other comprehensive income (loss) 66.7 0.5 67.2 Distributions to shareholders of noncontrolling interests (4.2) (4.2) Purchase of treasury stock (249.2) (249.2) Retirement of treasury stock (3.7) (249.2) 249.2 — Stock options exercised 0.8 23.7 23.7 Dividends declared (48.9) (48.9) Stock-based compensation expense 12.1 12.1 Balance as of March 31, 2017 305.4 $ 0.3 $ 1,056.7 $ 3,049.5 $ (402.3) $ — $ 46.9 $ 3,751.1 A rollforward of consolidated changes in equity for the three months ended March 31, 2016 is as follows: Amphenol Corporation Shareholders Accumulated Common Stock Other Shares Additional Retained Comprehensive Treasury Noncontrolling Total (in millions) Amount Paid-In Capital Earnings Loss Stock Interests Equity Balance as of December 31, 2015 308.0 $ 0.3 $ 783.3 $ 2,804.4 $ (349.5) $ — $ 39.9 $ 3,278.4 Net income 156.6 1.8 158.4 Other comprehensive income (loss) 52.1 0.3 52.4 Distributions to shareholders of noncontrolling interests (4.0) (4.0) Purchase of treasury stock (49.2) (49.2) Retirement of treasury stock (1.0) (49.2) 49.2 — Stock options exercised, including tax benefit 0.7 19.6 19.6 Dividends declared (43.0) (43.0) Stock-based compensation expense 11.6 11.6 Balance as of March 31, 2016 307.7 $ 0.3 $ 814.5 $ 2,868.8 $ (297.4) $ — $ 38.0 $ 3,424.2 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2017 | |
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, 2017 and 2016 is as follows: Three Months Ended March 31, (dollars and shares in millions, except per share data) 2017 2016 Net income attributable to Amphenol Corporation shareholders $ 224.9 $ 156.6 Basic weighted average common shares outstanding 306.6 Effect of dilutive stock options 9.8 Diluted weighted average common shares outstanding 316.4 Earnings per share attributable to Amphenol Corporation shareholders: Basic $ 0.73 $ 0.51 Diluted $ 0.71 $ 0.50 Excluded from the computations above were anti-dilutive common shares of nil and 11.0 million for the three months ended March 31, 2017 and 2016, respectively. The adoption of ASU 2016-09 in 2017, discussed in Note 2 herein, requires that excess tax benefits and tax deficiencies be excluded from the assumed proceeds available in cal culating the dilutive effect of stock options under the treasury stock method . As required, the Company adopted this provision of the new standard prospectively, which had the effect of increasing the Company’s diluted weighted average common shares outstanding by approximately two million shares for the three months ended March 31, 2017. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 7—Commitments and Contingencies The Company has been named as a defendant in several legal actions arising from normal business activities. The Company records a loss contingency liability when a loss is considered probable and the amount can be reasonably estimated. Although the potential liability with respect to certain of such legal actions cannot be reasonably estimated, none of such matters is 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 adverse effect on the Company’s financial condition, results of operations or cash flows. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2017 | |
Stock-Based Compensation | |
Stock-Based Compensation | Note 8—Stock-Based Compensation 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, 2017 and 2016, the Company’s income before income taxes was reduced for stock-based compensation expense of $12.1 and $11.6, respectively. In addition, for the three months ended March 31, 2017 and 2016, the Company recognized income tax benefits associated with stock-based compensation of $11.0 and $2.8, respectively. The income tax benefit during the three months ended March 31, 2017 includes the full cash tax benefit from option exercises in the quarter in accordance with the adoption of ASU 2016-09. Under previous accounting guidance, a portion of this benefit would have been recorded directly to equity. The expense incurred for stock-based compensation is included in Selling, general and administrative expense in the accompanying Condensed Consolidated Statements of Income. 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, 2017, there were 12,123,770 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, 2017 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, 2017 was as follows: Weighted Average Aggregate Weighted Remaining Intrinsic Average Contractual Value Options Exercise Price Term (in years) (in millions) Options outstanding at January 1, 2017 32,266,391 $ 44.14 7.03 $ 744.1 Options granted — Options exercised (834,925) Options forfeited (45,660) Options outstanding at March 31, 2017 31,385,806 $ 44.54 6.85 $ 835.7 Vested and non-vested options expected to vest at March 31, 2017 29,778,073 $ 44.04 6.78 $ 807.9 Exercisable options at March 31, 2017 12,788,636 $ 33.31 5.20 $ 484.2 A summary of the status of the Company’s non-vested options as of March 31, 2017 and changes during the three months then ended is as follows: Weighted Average Fair Value at Grant Options Date Non-vested options at January 1, 2017 18,725,570 $ 7.99 Options granted — — Options vested (82,740) 8.17 Options forfeited (45,660) 7.84 Non-vested options at March 31, 2017 18,597,170 $ 7.98 During the three months ended March 31, 2017 and 2016, the following activity occurred under the Company’s option plans: Three Months Ended March 31, 2017 2016 Total intrinsic value of stock options exercised $ 34.5 $ 20.7 Total fair value of stock options vested 0.7 0.4 As of March 31, 2017, the total compensation cost related to non-vested options not yet recognized was approximately $101.9 with a weighted average expected amortization period of 3.13 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 issuances 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. 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, 2017, the number of restricted shares available for grant under the 2012 Directors Restricted Stock Plan was 137,069. 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, 2017 was as follows: Weighted Average Remaining Restricted Fair Value at Amortization Term Shares Grant Date (in years) Restricted shares outstanding at January 1, 2017 16,905 $ 57.99 0.38 Restricted shares granted — — Restricted shares outstanding at March 31, 2017 16,905 $ 57.99 0.13 As of March 31, 2017, 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 0.13 years. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2017 | |
Shareholders’ Equity | |
Shareholders' Equity | Note 9—Shareholders’ Equity On January 24, 2017, the Company’s Board of Directors authorized a new stock repurchase program under which the Company may purchase up to $1,000.0 of the Company’s Common Stock during the two-year period ending January 24, 2019 in accordance with the requirements of Rule 10b-18 of the Exchange Act (the “2017 Stock Repurchase Program”). During the three months ended March 31, 2017, the Company repurchased 3.7 million shares of its common stock for $249.2. 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 its common stock through April 28, 2017. The price and timing of any future purchases under the 2017 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 October 2016, the Board of Directors approved an increase in the quarterly dividend rate from $0.14 to $0.16 per share effective with dividends declared in the fourth quarter of 2016. For the three months ended March 31, 2017, the Company paid dividends in the amount of $49.3 and declared dividends in the amount of $48.9. 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. |
Benefit Plans and Other Postret
Benefit Plans and Other Postretirement Benefits | 3 Months Ended |
Mar. 31, 2017 | |
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, 2017 and 2016: Other Postretirement Pension Benefits Benefits Three Months Ended March 31: 2017 2016 2017 2016 Service cost $ 2.4 $ 2.3 $ — $ — Interest cost 5.0 5.7 0.1 0.1 Expected return on plan assets (7.7) (7.5) — — Amortization of prior service cost 0.7 0.6 — — Amortization of net actuarial losses 5.7 6.3 0.2 0.2 Net pension expense $ 6.1 $ 7.4 $ 0.3 $ 0.3 For the three months ended March 31, 2017, 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 2017 of approximately $25.0, 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 Plans’ 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, 2017 and 2016, the total matching contributions to the U.S. defined contribution plans were approximately $1.7 and $1.2, respectively. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2017 | |
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, net of cash acquired. The acquisition was funded by cash, cash equivalents and short-term investments that were held outside of the United States. The purchase price was allocated to the tangible and identifiable intangible assets acquired and liabilities assumed of FCI based upon their estimated fair values. In the fourth quarter of 2016, the Company completed its analysis of the fair value of the net assets acquired through the use of independent valuations and management’s estimates, as noted in the Company’s 2016 Annual Report . The Company is in the process of completing its analysis of the fair value of the assets acquired and liabilities assumed related to its other 2016 and first quarter of 2017 acquisitions and anticipates that the final assessment of values will not differ materially from the preliminary assessment. These other acquisitions were not material to the Company either individually or in the aggregate. Acquisition-related Expenses During the three months ended March 31, 2016, the Company incurred approximately $30.3 ($27.3 after-tax) of acquisition-related expenses related to the acquisition of FCI, primarily related to external transaction costs, amortization related to the value associated with acquired backlog and post-closing restructuring charges. Such acquisition-related expenses are separately presented in the accompanying Condensed Consolidated Statements of Income. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2017 | |
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 Cable Products and Products and Assemblies Solutions Total Goodwill at December 31, 2016 $ 3,532.5 $ 146.3 $ 3,678.8 Acquisition-related 38.3 — 38.3 Foreign currency translation 31.6 — 31.6 Goodwill at March 31, 2017 $ 3,602.4 $ 146.3 $ 3,748.7 Other than goodwill noted above, as well as indefinite-lived trade name intangible assets of approximately $186.1 as of March 31, 2017 and December 31, 2016, the Company’s intangible assets are subject to amortization. A summary of the Company’s amortizable intangible assets as of March 31, 2017 and December 31, 2016 is as follows: March 31, 2017 December 31, 2016 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Amount Amortization Amount Amount Amortization Amount Customer relationships $ 383.2 $ 168.6 $ 214.6 $ 381.1 $ 159.1 $ 222.0 Proprietary technology 107.3 43.1 64.2 106.7 40.9 65.8 Backlog and other 34.0 33.5 0.5 34.0 33.5 0.5 Total $ 524.5 $ 245.2 $ 279.3 $ 521.8 $ 233.5 $ 288.3 Customer relationships, proprietary technology, and backlog and other amortizable intangible assets have weighted average useful lives of approximately 10 years, 11 years and 2 years, respectively, for an aggregate weighted average useful life of approximately 10 years at March 31, 2017. Intangible assets are included in Intangibles, net and other long-term assets in the accompanying Condensed Consolidated Balance Sheets. The amortization expense for the three months ended March 31, 2017 and 2016 was approximately $12.0 and $19.7, respectively. Amortization expense for the three months ended March 31, 2016 included $8.0 related to the amortization of acquired backlog from the FCI acquisition. As of March 31, 2017, amortization expense estimated for the remainder of 2017 is approximately $36.0 and for each of the next five fiscal years is approximately $43.9 in 2018, $39.8 in 2019, $34.1 in 2020, $29.4 in 2021 and $22.8 in 2022. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2017 | |
Debt | |
Debt | Note 13—Debt The Company’s debt (net of any unamortized discount) consists of the following: March 31, 2017 December 31, 2016 Carrying Approximate Carrying Approximate Amount Fair Value Amount Fair Value Revolving Credit Facility $ — $ — $ — $ — Commercial Paper Program 1,247.1 1,247.1 1,018.9 1,018.9 1.55% Senior Notes due September 2017 374.9 375.1 374.9 375.4 2.55% Senior Notes due January 2019 749.6 757.5 749.5 758.3 3.125% Senior Notes due September 2021 374.8 381.8 374.8 380.4 4.00% Senior Notes due February 2022 499.4 528.0 499.4 523.7 Notes payable to foreign banks and other debt 2.8 2.8 5.5 5.5 Less deferred debt issuance costs (11.4) — (12.3) — Total debt 3,237.2 3,292.3 3,010.7 3,062.2 Less current portion 375.1 375.3 375.2 375.7 Total long-term debt $ 2,862.1 $ 2,917.0 $ 2,635.5 $ 2,686.5 Revolving Credit Facility On March 1, 2016, the Company replaced its $1,500.0 unsecured credit facility with a new $2,000.0 unsecured credit facility (the “Revolving Credit Facility”). The 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 Revolving Credit Facility for general corporate purposes. At March 31, 2017, there were no borrowings under the Revolving Credit Facility. The Revolving Credit Facility requires payment of certain annual agency and commitment fees and requires that the Company satisfy certain financial covenants. At March 31, 2017, the Company was in compliance with the financial covenants under the Revolving Credit Facility. Commercial Paper Program The Company has a commercial paper program (the “Commercial Paper 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 Commercial Paper 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 bears varying interest rates on a fixed or floating basis. The Commercial Paper Program is rated A-2 by Standard & Poor’s and P-2 by Moody’s and is backstopped by the Revolving Credit Facility. Effective April 1, 2016, the maximum aggregate principal amount of the Commercial Paper outstanding under the Commercial Paper Program at any time was increased by $500.0 from $1,500.0 to $2,000.0. 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 14). The average interest rate on the Commercial Paper as of March 31, 2017 was 1.21%. Senior Notes All of the Company’s outstanding senior notes, 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 of 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). The 1.55% Senior Notes are due in September 2017 and are therefore recorded, net of the related unamortized discount and debt issuance costs, within Current portion of long-term debt in the accompanying Condensed Consolidated Balance Sheets as of March 31, 2017. On April 5, 2017, the Company issued $400.0 principal amount of unsecured 2.20% Senior Notes due April 1, 2020 at 99.922% of face value (the “2020 Senior Notes”) and $350.0 principal amount of unsecured 3.20% Senior Notes due April 1, 2024 at 99.888% of face value (the “ 2024 Senior Notes” and, together with the 2020 Senior Notes, the “Notes” ). Interest on each of these series of Notes is payable semi-annually on April 1 and October 1 of each year, commencing on October 1, 2017. The Company may, at its option, redeem some or all of the Notes at any time by paying 100% of the principal amount, plus accrued and unpaid interest, if any, to the date of the repurchase, and if redeemed prior to the date of maturity, a make-whole premium. If the Company redeems some or all of the 2024 Senior Notes on or after February 1, 2024, the Company shall pay 100% of the principal amount, plus accrued and unpaid interest, if any, to the date of repurchase. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2017 | |
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, 2017 and December 31, 2016 are as follows: Fair Value Measurements Quoted Prices in Significant Significant Active Markets Observable Unobservable for Identical Inputs Inputs Total Assets (Level 1) (Level 2) (Level 3) March 31, 2017: Short-term investments $ 36.8 $ 36.8 $ — $ — Forward contracts 10.4 — 10.4 — Total $ 47.2 $ 36.8 $ 10.4 $ — December 31, 2016: Short-term investments $ 138.6 $ 138.6 $ — $ — Forward contracts 8.4 — 8.4 — Total $ 147.0 $ 138.6 $ 8.4 $ — 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 months ended March 31, 2017 and 2016 was not material. The fair values of the forward contracts are recorded within Other current assets, Intangibles, net and other long-term assets, Other accrued expenses or 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, 2017 | |
Income Taxes | |
Income Taxes | Note 15—Income Taxes The provision for income taxes for the first quarter of 2017 was at an effective tax rate of 23.8%, which included the effect of the adoption of ASU 2016-09. The provision for income taxes for the first quarter of 2016 was at an effective tax rate of 28.7%. The effective tax rate for the first quarter of 2016 included the effect of acquisition-related expenses incurred during such period, which had the impact of increasing the effective tax rate by 220 basis points. The decrease in the effective tax rate in the first quarter of 2017 primarily resulted from both the adoption of ASU 2016-09 in 2017, as well as the effect of the acquisition-related expenses incurred in 2016. The adoption of ASU 2016-09 was applied prospectively and therefore, there was no such impact to the provision for income taxes for the first quarter of 2016. 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 tax authorities and may not be fully sustained, despite the Company’s belief that the underlying tax positions are fully supportable. As of March 31, 2017, the amount of the liability for unrecognized tax benefits, including penalties and interest, which if recognized would impact the effective tax rate, was approximately $139.8, which is included in 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 $11.3. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Inventories | |
Schedule of Inventories | March 31, December 31, 2017 2016 Raw materials and supplies $ 335.7 $ 319.8 Work in process 330.4 313.4 Finished goods 296.2 295.7 $ 962.3 $ 928.9 |
Reportable Business Segments (T
Reportable Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Reportable Business Segments | |
Schedule of segment reporting information by segment | Interconnect Products Cable Products Total Reportable and Assemblies and Solutions Business Segments Three Months Ended March 31: 2017 2016 2017 2016 2017 2016 Net sales: External $ 1,463.5 $ 1,367.8 $ 96.6 $ 83.4 $ 1,560.1 $ 1,451.2 Intersegment 2.3 1.6 10.2 6.3 12.5 7.9 Segment operating income 323.9 281.2 13.7 11.1 337.6 292.3 |
Schedule of the reconciliation of segment operating income to consolidated income before income taxes | Three Months Ended March 31, 2017 2016 Segment operating income $ 337.6 $ 292.3 Interest expense (19.3) (18.1) Other income, net 3.6 1.0 Stock-based compensation expense (12.1) (11.6) Acquisition-related expenses — (30.3) Other operating expenses (11.4) (11.0) Income before income taxes $ 298.4 $ 222.3 |
Changes in Equity and Noncont25
Changes in Equity and Noncontrolling Interests (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Equity | |
Rollforward of consolidated changes in equity | A rollforward of consolidated changes in equity for the three months ended March 31, 2017 is as follows: Amphenol Corporation Shareholders Accumulated Common Stock Other Shares Additional Retained Comprehensive Treasury Noncontrolling Total (in millions) Amount Paid-In Capital Earnings Loss Stock Interests Equity Balance as of December 31, 2016 308.3 $ 0.3 $ 1,020.9 $ 3,122.7 $ (469.0) $ — $ 48.2 $ 3,723.1 Net income 224.9 2.4 227.3 Other comprehensive income (loss) 66.7 0.5 67.2 Distributions to shareholders of noncontrolling interests (4.2) (4.2) Purchase of treasury stock (249.2) (249.2) Retirement of treasury stock (3.7) (249.2) 249.2 — Stock options exercised 0.8 23.7 23.7 Dividends declared (48.9) (48.9) Stock-based compensation expense 12.1 12.1 Balance as of March 31, 2017 305.4 $ 0.3 $ 1,056.7 $ 3,049.5 $ (402.3) $ — $ 46.9 $ 3,751.1 A rollforward of consolidated changes in equity for the three months ended March 31, 2016 is as follows: Amphenol Corporation Shareholders Accumulated Common Stock Other Shares Additional Retained Comprehensive Treasury Noncontrolling Total (in millions) Amount Paid-In Capital Earnings Loss Stock Interests Equity Balance as of December 31, 2015 308.0 $ 0.3 $ 783.3 $ 2,804.4 $ (349.5) $ — $ 39.9 $ 3,278.4 Net income 156.6 1.8 158.4 Other comprehensive income (loss) 52.1 0.3 52.4 Distributions to shareholders of noncontrolling interests (4.0) (4.0) Purchase of treasury stock (49.2) (49.2) Retirement of treasury stock (1.0) (49.2) 49.2 — Stock options exercised, including tax benefit 0.7 19.6 19.6 Dividends declared (43.0) (43.0) Stock-based compensation expense 11.6 11.6 Balance as of March 31, 2016 307.7 $ 0.3 $ 814.5 $ 2,868.8 $ (297.4) $ — $ 38.0 $ 3,424.2 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share | |
Schedule of the reconciliation of basic weighted average common shares outstanding to diluted weighted average common shares outstanding | Three Months Ended March 31, (dollars and shares in millions, except per share data) 2017 2016 Net income attributable to Amphenol Corporation shareholders $ 224.9 $ 156.6 Basic weighted average common shares outstanding 306.6 Effect of dilutive stock options 9.8 Diluted weighted average common shares outstanding 316.4 Earnings per share attributable to Amphenol Corporation shareholders: Basic $ 0.73 $ 0.51 Diluted $ 0.71 $ 0.50 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Stock-Based Compensation | |
Schedule of stock option activity | Weighted Average Aggregate Weighted Remaining Intrinsic Average Contractual Value Options Exercise Price Term (in years) (in millions) Options outstanding at January 1, 2017 32,266,391 $ 44.14 7.03 $ 744.1 Options granted — Options exercised (834,925) Options forfeited (45,660) Options outstanding at March 31, 2017 31,385,806 $ 44.54 6.85 $ 835.7 Vested and non-vested options expected to vest at March 31, 2017 29,778,073 $ 44.04 6.78 $ 807.9 Exercisable options at March 31, 2017 12,788,636 $ 33.31 5.20 $ 484.2 |
Summary of status of non-vested options and changes during the year | Weighted Average Fair Value at Grant Options Date Non-vested options at January 1, 2017 18,725,570 $ 7.99 Options granted — — Options vested (82,740) 8.17 Options forfeited (45,660) 7.84 Non-vested options at March 31, 2017 18,597,170 $ 7.98 |
Summary of activity in the option plans | Three Months Ended March 31, 2017 2016 Total intrinsic value of stock options exercised $ 34.5 $ 20.7 Total fair value of stock options vested 0.7 0.4 |
Schedule of restricted share activity | Weighted Average Remaining Restricted Fair Value at Amortization Term Shares Grant Date (in years) Restricted shares outstanding at January 1, 2017 16,905 $ 57.99 0.38 Restricted shares granted — — Restricted shares outstanding at March 31, 2017 16,905 $ 57.99 0.13 |
Benefit Plans and Other Postr28
Benefit Plans and Other Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Benefit Plans and Other Postretirement Benefits | |
Schedule of components of net pension expense | Other Postretirement Pension Benefits Benefits Three Months Ended March 31: 2017 2016 2017 2016 Service cost $ 2.4 $ 2.3 $ — $ — Interest cost 5.0 5.7 0.1 0.1 Expected return on plan assets (7.7) (7.5) — — Amortization of prior service cost 0.7 0.6 — — Amortization of net actuarial losses 5.7 6.3 0.2 0.2 Net pension expense $ 6.1 $ 7.4 $ 0.3 $ 0.3 |
Goodwill and Other Intangible29
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Other Intangible Assets | |
Schedule of changes in the carrying amount of goodwill by segment | Interconnect Cable Products and Products and Assemblies Solutions Total Goodwill at December 31, 2016 $ 3,532.5 $ 146.3 $ 3,678.8 Acquisition-related 38.3 — 38.3 Foreign currency translation 31.6 — 31.6 Goodwill at March 31, 2017 $ 3,602.4 $ 146.3 $ 3,748.7 |
Summary of the Company's amortizable intangible assets | March 31, 2017 December 31, 2016 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Amount Amortization Amount Amount Amortization Amount Customer relationships $ 383.2 $ 168.6 $ 214.6 $ 381.1 $ 159.1 $ 222.0 Proprietary technology 107.3 43.1 64.2 106.7 40.9 65.8 Backlog and other 34.0 33.5 0.5 34.0 33.5 0.5 Total $ 524.5 $ 245.2 $ 279.3 $ 521.8 $ 233.5 $ 288.3 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt | |
Schedule of Debt | March 31, 2017 December 31, 2016 Carrying Approximate Carrying Approximate Amount Fair Value Amount Fair Value Revolving Credit Facility $ — $ — $ — $ — Commercial Paper Program 1,247.1 1,247.1 1,018.9 1,018.9 1.55% Senior Notes due September 2017 374.9 375.1 374.9 375.4 2.55% Senior Notes due January 2019 749.6 757.5 749.5 758.3 3.125% Senior Notes due September 2021 374.8 381.8 374.8 380.4 4.00% Senior Notes due February 2022 499.4 528.0 499.4 523.7 Notes payable to foreign banks and other debt 2.8 2.8 5.5 5.5 Less deferred debt issuance costs (11.4) — (12.3) — Total debt 3,237.2 3,292.3 3,010.7 3,062.2 Less current portion 375.1 375.3 375.2 375.7 Total long-term debt $ 2,862.1 $ 2,917.0 $ 2,635.5 $ 2,686.5 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Measurements | |
Fair values of financial and non-financial assets and liabilities | Fair Value Measurements Quoted Prices in Significant Significant Active Markets Observable Unobservable for Identical Inputs Inputs Total Assets (Level 1) (Level 2) (Level 3) March 31, 2017: Short-term investments $ 36.8 $ 36.8 $ — $ — Forward contracts 10.4 — 10.4 — Total $ 47.2 $ 36.8 $ 10.4 $ — December 31, 2016: Short-term investments $ 138.6 $ 138.6 $ — $ — Forward contracts 8.4 — 8.4 — Total $ 147.0 $ 138.6 $ 8.4 $ — |
New Accounting Pronouncements (
New Accounting Pronouncements (Details) $ in Millions | Mar. 31, 2017USD ($) |
Impact of ASU 2016-09 | |
New Accounting Pronouncements | |
Cumulative-effect adjustment to retained earnings | $ 0 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Inventories | ||
Raw materials and supplies | $ 335.7 | $ 319.8 |
Work in process | 330.4 | 313.4 |
Finished goods | 296.2 | 295.7 |
Inventories | $ 962.3 | $ 928.9 |
Reportable Business Segments (D
Reportable Business Segments (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2017USD ($)segment | Mar. 31, 2016USD ($) | |
Segment reporting information | ||
Number of reportable business segments | segment | 2 | |
Net sales | $ 1,560.1 | $ 1,451.2 |
Segment operating income | 314.1 | 239.4 |
Operating Segment | ||
Segment reporting information | ||
Segment operating income | 337.6 | 292.3 |
Operating Segment | Interconnect Products and Assemblies | ||
Segment reporting information | ||
Net sales | 1,463.5 | 1,367.8 |
Segment operating income | 323.9 | 281.2 |
Operating Segment | Cable Products and Solutions | ||
Segment reporting information | ||
Net sales | 96.6 | 83.4 |
Segment operating income | 13.7 | 11.1 |
Inter-Segment | ||
Segment reporting information | ||
Net sales | 12.5 | 7.9 |
Inter-Segment | Interconnect Products and Assemblies | ||
Segment reporting information | ||
Net sales | 2.3 | 1.6 |
Inter-Segment | Cable Products and Solutions | ||
Segment reporting information | ||
Net sales | $ 10.2 | $ 6.3 |
Reportable Business Segments, R
Reportable Business Segments, Reconciliation of Segment Operating Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Reconciliation of segment operating income to consolidated income before income taxes | ||
Segment operating income | $ 314.1 | $ 239.4 |
Interest expense | (19.3) | (18.1) |
Other income, net | 3.6 | 1 |
Stock-based compensation expense | (12.1) | (11.6) |
Acquisition-related expenses | (30.3) | |
Other operating expenses | (11.4) | (11) |
Income before income taxes | 298.4 | 222.3 |
Operating Segment | ||
Reconciliation of segment operating income to consolidated income before income taxes | ||
Segment operating income | $ 337.6 | $ 292.3 |
Changes in Equity and Noncont36
Changes in Equity and Noncontrolling Interests (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Increase (Decrease) In Shareholders' Equity | ||
Balance at beginning of period | $ 3,723.1 | $ 3,278.4 |
Net income | 227.3 | 158.4 |
Other comprehensive income (loss) | 67.2 | 52.4 |
Distributions to shareholders of noncontrolling interests | (4.2) | (4) |
Purchase of treasury stock | (249.2) | (49.2) |
Stock options exercised | 23.7 | 19.6 |
Dividends declared | (48.9) | (43) |
Stock-based compensation expense | 12.1 | 11.6 |
Balance at end of period | $ 3,751.1 | $ 3,424.2 |
Common Stock | ||
Increase (Decrease) In Shareholders' Equity | ||
Balance (in shares) | 308.3 | 308 |
Balance at beginning of period | $ 0.3 | $ 0.3 |
Retirement of treasury stock (in shares) | (3.7) | (1) |
Stock options exercised (in shares) | 0.8 | 0.7 |
Balance (in shares) | 305.4 | 307.7 |
Balance at end of period | $ 0.3 | $ 0.3 |
Additional Paid-In Capital | ||
Increase (Decrease) In Shareholders' Equity | ||
Balance at beginning of period | 1,020.9 | 783.3 |
Stock options exercised | 23.7 | 19.6 |
Stock-based compensation expense | 12.1 | 11.6 |
Balance at end of period | 1,056.7 | 814.5 |
Retained Earnings | ||
Increase (Decrease) In Shareholders' Equity | ||
Balance at beginning of period | 3,122.7 | 2,804.4 |
Net income | 224.9 | 156.6 |
Retirement of treasury stock | (249.2) | (49.2) |
Dividends declared | (48.9) | (43) |
Balance at end of period | 3,049.5 | 2,868.8 |
Accumulated Other Comprehensive Loss | ||
Increase (Decrease) In Shareholders' Equity | ||
Balance at beginning of period | (469) | (349.5) |
Other comprehensive income (loss) | 66.7 | 52.1 |
Balance at end of period | (402.3) | (297.4) |
Treasury Stock | ||
Increase (Decrease) In Shareholders' Equity | ||
Purchase of treasury stock | (249.2) | (49.2) |
Retirement of treasury stock | 249.2 | 49.2 |
Noncontrolling Interests | ||
Increase (Decrease) In Shareholders' Equity | ||
Balance at beginning of period | 48.2 | 39.9 |
Net income | 2.4 | 1.8 |
Other comprehensive income (loss) | 0.5 | 0.3 |
Distributions to shareholders of noncontrolling interests | (4.2) | (4) |
Balance at end of period | $ 46.9 | $ 38 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share | ||
Net income attributable to Amphenol Corporation shareholders | $ 224.9 | $ 156.6 |
Basic weighted average common shares outstanding (in shares) | 306.6 | 307.6 |
Effect of dilutive stock options (in shares) | 9.8 | 6.6 |
Diluted weighted average common shares outstanding (in shares) | 316.4 | 314.2 |
Earnings per share attributable to Amphenol Corporation shareholders: | ||
Basic (in dollars per share) | $ 0.73 | $ 0.51 |
Diluted (in dollars per share) | $ 0.71 | $ 0.50 |
Anti-dilutive common shares | ||
Anti-dilutive stock options, excluded from the computations of earning per share (in shares) | 0 | 11 |
Earnings Per Share, ASU 2016-09
Earnings Per Share, ASU 2016-09 (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Effect of dilutive stock options | ||
Effect of dilutive stock options (in shares) | 9.8 | 6.6 |
Impact of ASU 2016-09 | ||
Effect of dilutive stock options | ||
Effect of dilutive stock options (in shares) | 2 |
Stock-Based Compensation, Stock
Stock-Based Compensation, Stock-based Comp Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Stock-Based Compensation | ||
Expense incurred for stock-based compensation plans | $ 12.1 | $ 11.6 |
Recognized tax benefit related to stock-based compensation | $ 11 | $ 2.8 |
Stock-Based Compensation, Optio
Stock-Based Compensation, Options and Restricted Shares (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
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 | 12,123,770 | ||
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) | 32,266,391 | ||
Options exercised (in shares) | (834,925) | ||
Options forfeited (in shares) | (45,660) | ||
Options outstanding at the end of the period (in shares) | 31,385,806 | 32,266,391 | |
Vested and non-vested options expected to vest at the end of the period (in shares) | 29,778,073 | ||
Exercisable at the end of the period (in shares) | 12,788,636 | ||
Weighted Average Exercise Price | |||
Weighted average exercise price, options outstanding at the beginning of the period (in dollars per share) | $ 44.14 | ||
Weighted average exercise price, options outstanding at the end of the period (in dollars per share) | 44.54 | $ 44.14 | |
Weighted average exercise price, vested and non-vested options expected to vest (in dollars per share) | 44.04 | ||
Weighted average exercise price, exercisable (in dollars per share) | $ 33.31 | ||
Weighted Average Remaining Contractual Term | |||
Weighted average remaining contractual term of options outstanding | 6 years 10 months 6 days | 7 years 11 days | |
Weighted average remaining contractual term of options vested options and non-vested expected to vest | 6 years 9 months 11 days | ||
Weighted average remaining contractual term of options exercisable | 5 years 2 months 12 days | ||
Aggregate Intrinsic Value | |||
Aggregate intrinsic value of options outstanding | $ 835.7 | $ 744.1 | |
Aggregate intrinsic value of options, vested and non-vested options expected to vest | 807.9 | ||
Aggregate intrinsic value of options exercisable | $ 484.2 | ||
Status of the Company's non-vested options and changes during the year | |||
Non-vested options at the beginning of the period (in shares) | 18,725,570 | ||
Non-vested options, options vested (in shares) | (82,740) | ||
Non-vested options, options forfeited (in shares) | (45,660) | ||
Non-vested options at the end of the period (in shares) | 18,597,170 | 18,725,570 | |
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) | $ 7.99 | ||
Weighted average fair value at grant date, options vested (in dollars per share) | 8.17 | ||
Weighted average fair value at grant date, options forfeited (in dollars per share) | 7.84 | ||
Weighted average fair value at the grant date, options outstanding at the end of the period (in dollars per share) | $ 7.98 | $ 7.99 | |
Fair Value at Grant Date | |||
Total intrinsic value of stock options exercised | $ 34.5 | $ 20.7 | |
Total fair value of stock options vested | 0.7 | $ 0.4 | |
Total compensation cost related to non-vested options not yet recognized | $ 101.9 | ||
Weighted average expected amortization period | 3 years 1 month 17 days | ||
Restricted Shares | 2012 Directors Restricted Stock Plan | |||
Stock-Based Compensation | |||
Shares available for the granting of additional stock options | 137,069 | ||
Restricted share activity | |||
Restricted shares outstanding at the beginning of the period (in shares) | 16,905 | ||
Restricted shares outstanding at the end of the period (in shares) | 16,905 | 16,905 | |
Fair Value at Grant Date | |||
Fair value at the grant date, restricted shares outstanding at the beginning of the period (in dollars per share) | $ 57.99 | ||
Fair value at the grant date, restricted shares outstanding at the end of the period (in dollars per share) | $ 57.99 | $ 57.99 | |
Weighted Average Remaining Amortization Term (in years) | 1 month 17 days | 4 months 17 days | |
Total compensation cost related to non-vested restricted shares not yet recognized | $ 0.1 | ||
Weighted average expected amortization period | 1 month 17 days |
Shareholders' Equity, Stock Rep
Shareholders' Equity, Stock Repurchase (Details) - 2017 Stock Repurchase Program - USD ($) shares in Millions, $ in Millions | Jan. 24, 2017 | Mar. 31, 2017 |
Shareholders' Equity | ||
Value of shares authorized to be repurchased | $ 1,000 | |
Repurchase of stock program, period | 2 years | |
Number of shares repurchased and retired | 3.7 | |
Payments for shares repurchased and retired (in dollars) | $ 249.2 |
Shareholders_ Equity - Dividend
Shareholders’ Equity - Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Mar. 31, 2016 | |
Shareholders’ Equity | ||||
Dividends declared per common share (in dollars per share) | $ 0.16 | $ 0.16 | $ 0.14 | $ 0.14 |
Dividends paid | $ 49.3 | $ 43.2 | ||
Dividends declared | $ 48.9 | $ 43 |
Benefit Plans and Other Postr43
Benefit Plans and Other Postretirement Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Pension Benefits | ||
Components of net pension expense: | ||
Service cost | $ 2.4 | $ 2.3 |
Interest cost | 5 | 5.7 |
Expected return on plan assets | (7.7) | (7.5) |
Amortization of prior service cost | 0.7 | 0.6 |
Amortization of actuarial losses | 5.7 | 6.3 |
Net pension expense | 6.1 | 7.4 |
U.S. Plans, Pension Benefits | ||
Components of net pension expense: | ||
Estimated cash contribution to the Plans in 2017 based on current actuarial calculations | 25 | |
Other Postretirement Benefits | ||
Components of net pension expense: | ||
Interest cost | 0.1 | 0.1 |
Amortization of actuarial losses | 0.2 | 0.2 |
Net pension expense | $ 0.3 | $ 0.3 |
Benefit Plans and Other Postr44
Benefit Plans and Other Postretirement Benefits, Defined Contribution (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Benefit Plans and Other Postretirement 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 | $ 1.7 | $ 1.2 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Millions | Jan. 08, 2016 | Mar. 31, 2017 | Mar. 31, 2016 |
Acquisitions | |||
Purchase price, net of cash acquired | $ 46.6 | $ 1,185.8 | |
FCI Asia Pte Ltd (“FCI”) | |||
Acquisitions | |||
Purchase price, net of cash acquired | $ 1,178.6 |
Acquisitions, Acquisition-relat
Acquisitions, Acquisition-related Expenses (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Acquisitions | |
Acquisition-related expenses | $ 30.3 |
FCI Asia Pte Ltd (“FCI”) | |
Acquisitions | |
Acquisition-related expenses | 30.3 |
Acquisition-related expenses, net of tax | $ 27.3 |
Goodwill and Other Intangible47
Goodwill and Other Intangible Assets (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Goodwill. | |
Goodwill, Beginning Balance | $ 3,678.8 |
Acquisition-related | 38.3 |
Foreign currency translation | 31.6 |
Goodwill, Ending Balance | 3,748.7 |
Interconnect Products and Assemblies | |
Goodwill. | |
Goodwill, Beginning Balance | 3,532.5 |
Acquisition-related | 38.3 |
Foreign currency translation | 31.6 |
Goodwill, Ending Balance | 3,602.4 |
Cable Products and Solutions | |
Goodwill. | |
Goodwill, Beginning Balance | 146.3 |
Goodwill, Ending Balance | $ 146.3 |
Goodwill and Other Intangible48
Goodwill and Other Intangible Assets, Table (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Intangible assets | ||
Indefinite-lived trade name intangible asset | $ 186.1 | $ 186.1 |
Gross Carrying Amount | 524.5 | 521.8 |
Accumulated Amortization | 245.2 | 233.5 |
Net Carrying Amount | $ 279.3 | 288.3 |
Weighted average useful lives of acquired amortizable intangible assets | 10 years | |
Customer relationships | ||
Intangible assets | ||
Gross Carrying Amount | $ 383.2 | 381.1 |
Accumulated Amortization | 168.6 | 159.1 |
Net Carrying Amount | $ 214.6 | 222 |
Weighted average useful lives of acquired amortizable intangible assets | 10 years | |
Proprietary technology | ||
Intangible assets | ||
Gross Carrying Amount | $ 107.3 | 106.7 |
Accumulated Amortization | 43.1 | 40.9 |
Net Carrying Amount | $ 64.2 | 65.8 |
Weighted average useful lives of acquired amortizable intangible assets | 11 years | |
Backlog and other | ||
Intangible assets | ||
Gross Carrying Amount | $ 34 | 34 |
Accumulated Amortization | 33.5 | 33.5 |
Net Carrying Amount | $ 0.5 | $ 0.5 |
Weighted average useful lives of acquired amortizable intangible assets | 2 years |
Goodwill and Other Intangible49
Goodwill and Other Intangible Assets, Amortization (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Intangible assets | ||
Amortization expense | $ 12 | $ 19.7 |
Amortization expense estimated for each of the next five fiscal years | ||
Remainder of 2017 | 36 | |
2,018 | 43.9 | |
2,019 | 39.8 | |
2,020 | 34.1 | |
2,021 | 29.4 | |
2,022 | $ 22.8 | |
Backlog | ||
Intangible assets | ||
Amortization expense | $ 8 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | Apr. 05, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Apr. 01, 2016 | Mar. 31, 2016 | Mar. 01, 2016 | Feb. 29, 2016 |
Long-Term Debt | |||||||
Less deferred debt issuance costs | $ (11.4) | $ (12.3) | |||||
Total debt | 3,237.2 | 3,010.7 | |||||
Less current portion | 375.1 | 375.2 | |||||
Total long-term debt | 2,862.1 | 2,635.5 | |||||
Total debt, Approximate Fair Value | 3,292.3 | 3,062.2 | |||||
Less short-term debt, Approximate Fair Value | 375.3 | 375.7 | |||||
Long-term debt, Approximate Fair Value | 2,917 | 2,686.5 | |||||
The “Revolving Credit Facility” | |||||||
Long-Term Debt | |||||||
Maximum borrowing capacity | $ 2,000 | $ 1,500 | |||||
Increases in aggregate commitments | $ 500 | ||||||
Borrowings under the Revolving Credit Facility | 0 | ||||||
Commercial Paper Program | |||||||
Long-Term Debt | |||||||
Debt carrying amount, net of unamortized discount before deferred debt issuance costs | 1,247.1 | 1,018.9 | |||||
Total debt, Approximate Fair Value | $ 1,247.1 | $ 1,018.9 | |||||
Maximum borrowing capacity | $ 2,000 | $ 1,500 | |||||
Increases in aggregate commitments | $ 500 | ||||||
Maximum maturity term | 397 days | ||||||
Average interest rate (as a percent) | 1.21% | ||||||
Senior Notes | |||||||
Long-Term Debt | |||||||
Redemption price as a percentage of principal amount | 100.00% | ||||||
1.55% Senior Notes due September 2017 | |||||||
Long-Term Debt | |||||||
Stated interest rate (as a percent) | 1.55% | 1.55% | |||||
Debt carrying amount, net of unamortized discount before deferred debt issuance costs | $ 374.9 | $ 374.9 | |||||
Total debt, Approximate Fair Value | $ 375.1 | $ 375.4 | |||||
2.55% Senior Notes due January 2019 | |||||||
Long-Term Debt | |||||||
Stated interest rate (as a percent) | 2.55% | 2.55% | |||||
Debt carrying amount, net of unamortized discount before deferred debt issuance costs | $ 749.6 | $ 749.5 | |||||
Total debt, Approximate Fair Value | $ 757.5 | $ 758.3 | |||||
3.125% Senior Notes due September 2021 | |||||||
Long-Term Debt | |||||||
Stated interest rate (as a percent) | 3.125% | 3.125% | |||||
Debt carrying amount, net of unamortized discount before deferred debt issuance costs | $ 374.8 | $ 374.8 | |||||
Total debt, Approximate Fair Value | $ 381.8 | 380.4 | |||||
4.00% Senior Notes due February 2022 | |||||||
Long-Term Debt | |||||||
Stated interest rate (as a percent) | 4.00% | ||||||
Debt carrying amount, net of unamortized discount before deferred debt issuance costs | $ 499.4 | 499.4 | |||||
Total debt, Approximate Fair Value | 528 | 523.7 | |||||
2.20% Senior Notes due April 2020 | |||||||
Long-Term Debt | |||||||
Stated interest rate (as a percent) | 2.20% | ||||||
Debt instrument, principal amount | $ 400 | ||||||
Debt instrument, face amount, net of discount (as a percent) | 99.922% | ||||||
3.20% Senior Notes due April 2024 | |||||||
Long-Term Debt | |||||||
Stated interest rate (as a percent) | 3.20% | ||||||
Debt instrument, principal amount | $ 350 | ||||||
Debt instrument, face amount, net of discount (as a percent) | 99.888% | ||||||
3.20% Senior Notes due April 2024 | On or after February 1, 2024 | |||||||
Long-Term Debt | |||||||
Redemption price as a percentage of principal amount | 100.00% | ||||||
Notes payable to foreign banks and other debt | |||||||
Long-Term Debt | |||||||
Debt carrying amount, net of unamortized discount before deferred debt issuance costs | 2.8 | 5.5 | |||||
Total debt, Approximate Fair Value | $ 2.8 | $ 5.5 | |||||
2.20% and 3.20% Senior Notes due April, 2020 and 2024, respectively | |||||||
Long-Term Debt | |||||||
Redemption price as a percentage of principal amount | 100.00% |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Recurring basis - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Fair value of assets and liabilities measured on recurring basis | ||
Short-term investments | $ 36.8 | $ 138.6 |
Forward contracts | 10.4 | 8.4 |
Total | 47.2 | 147 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair value of assets and liabilities measured on recurring basis | ||
Short-term investments | 36.8 | 138.6 |
Total | 36.8 | 138.6 |
Significant Observable Inputs (Level 2) | ||
Fair value of assets and liabilities measured on recurring basis | ||
Forward contracts | 10.4 | 8.4 |
Total | $ 10.4 | $ 8.4 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Taxes | ||
Effective tax rate (as a percent) | 23.80% | 28.70% |
Impact of acquisition-related expenses on the effective tax rate (in basis points) | 2.20% | |
Liability for unrecognized tax benefits, including penalties and interest, which if recognized would impact the effective tax rate | $ 139.8 | |
Unrecognized tax benefits that could change in the next twelve-month period | $ 11.3 |