Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 01, 2018 | May 03, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Apr. 1, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | BDC | |
Entity Registrant Name | BELDEN INC. | |
Entity Central Index Key | 913,142 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 40,649,143 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Apr. 01, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 362,863 | $ 561,108 |
Receivables, net | 439,846 | 473,570 |
Inventories, net | 328,797 | 297,226 |
Other current assets | 51,976 | 40,167 |
Total current assets | 1,183,482 | 1,372,071 |
Property, plant and equipment, less accumulated depreciation | 351,122 | 337,322 |
Goodwill | 1,569,970 | 1,478,257 |
Intangible assets, less accumulated amortization | 570,529 | 545,207 |
Deferred income taxes | 66,649 | 42,549 |
Other long-lived assets | 24,797 | 65,207 |
Total assets | 3,766,549 | 3,840,613 |
Current liabilities: | ||
Accounts payable | 300,670 | 376,277 |
Accrued liabilities | 288,454 | 302,651 |
Total current liabilities | 589,124 | 678,928 |
Long-term debt | 1,662,654 | 1,560,748 |
Postretirement benefits | 151,916 | 102,085 |
Deferred income taxes | 33,942 | 27,713 |
Other long-term liabilities | 36,767 | 36,273 |
Stockholders’ equity: | ||
Preferred stock | 1 | 1 |
Common stock | 503 | 503 |
Additional paid-in capital | 1,125,364 | 1,123,832 |
Retained earnings | 795,977 | 833,610 |
Accumulated other comprehensive loss | (129,434) | (98,026) |
Treasury stock | (500,864) | (425,685) |
Total Belden stockholders’ equity | 1,291,547 | 1,434,235 |
Noncontrolling interest | 599 | 631 |
Total stockholders’ equity | 1,292,146 | 1,434,866 |
Total liabilities and stockholders' equity | $ 3,766,549 | $ 3,840,613 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Apr. 02, 2017 | |
Income Statement [Abstract] | ||
Revenues | $ 605,565 | $ 551,381 |
Cost of sales | (374,971) | (329,007) |
Gross profit | 230,594 | 222,374 |
Selling, general and administrative expenses | (124,872) | (112,586) |
Research and development | (37,101) | (34,522) |
Amortization of intangibles | (24,418) | (23,669) |
Operating income | 44,203 | 51,597 |
Interest expense, net | (16,978) | (23,506) |
Non-operating pension costs | (275) | (260) |
Loss on debt extinguishment | (19,960) | 0 |
Income before taxes | 6,990 | 27,831 |
Income tax expense | (4,420) | (2,250) |
Net income | 2,570 | 25,581 |
Less: Net loss attributable to noncontrolling interest | (48) | (106) |
Net income attributable to Belden | 2,618 | 25,687 |
Less: Preferred stock dividends | 8,733 | 8,733 |
Net income (loss) attributable to Belden common stockholders | $ (6,115) | $ 16,954 |
Weighted average number of common shares and equivalents: | ||
Basic (in shares) | 41,633 | 42,216 |
Diluted (in shares) | 41,633 | 42,675 |
Basic income (loss) per share attributable to Belden common stockholders (in usd per share) | $ (0.15) | $ 0.40 |
Diluted income (loss) per share attributable to Belden common stockholders (in usd per share) | $ (0.15) | $ 0.40 |
Comprehensive income (loss) attributable to Belden | $ (28,790) | $ 16,276 |
Common stock dividends declared per share (in usd per share) | $ 0.05 | $ 0.05 |
Condensed Consolidated Cash Flo
Condensed Consolidated Cash Flow Statements (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Apr. 02, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 2,570 | $ 25,581 |
Adjustments to reconcile net income to net cash used for operating activities: | ||
Depreciation and amortization | 36,519 | 35,052 |
Loss on debt extinguishment | 19,960 | 0 |
Share-based compensation | 3,126 | 3,930 |
Changes in operating assets and liabilities, net of the effects of currency exchange rate changes and acquired businesses: | ||
Receivables | 18,921 | 9,416 |
Inventories | (16,737) | (27,245) |
Accounts payable | (90,662) | 3,400 |
Accrued liabilities | (48,611) | (53,733) |
Income taxes | (785) | (2,387) |
Other assets | (10,602) | (5,794) |
Other liabilities | 2,441 | (483) |
Net cash used for operating activities | (83,860) | (12,263) |
Cash flows from investing activities: | ||
Cash used to acquire businesses, net of cash acquired | (76,084) | 0 |
Capital expenditures | (15,900) | (10,399) |
Proceeds from disposal of tangible assets | 25 | 0 |
Proceeds from disposal of business | 39,100 | 0 |
Net cash used for investing activities | (52,859) | (10,399) |
Cash flows from financing activities: | ||
Payments under borrowing arrangements | (401,234) | 0 |
Payments under share repurchase program | (75,270) | 0 |
Cash dividends paid | (10,790) | (10,842) |
Debt issuance costs paid | (7,059) | (4) |
Withholding tax payments for share-based payment awards | (1,503) | (4,382) |
Borrowings under credit arrangements | 431,270 | 0 |
Net cash used for financing activities | (64,586) | (15,228) |
Effect of foreign currency exchange rate changes on cash and cash equivalents | 3,060 | 5,698 |
Decrease in cash and cash equivalents | (198,245) | (32,192) |
Cash and cash equivalents, beginning of period | 561,108 | 848,116 |
Cash and cash equivalents, end of period | $ 362,863 | $ 815,924 |
Condensed Consolidated Stockhol
Condensed Consolidated Stockholders' Equity Statement (Unaudited) - 3 months ended Apr. 01, 2018 - USD ($) shares in Thousands, $ in Thousands | Total | Mandatory Convertible Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interest |
Beginning balance, shares at Dec. 31, 2017 | 52 | 50,335 | (8,316) | |||||
Beginning balance at Dec. 31, 2017 | $ 1,434,866 | $ 1 | $ 503 | $ 1,123,832 | $ 833,610 | $ (425,685) | $ (98,026) | $ 631 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cumulative effect of change in accounting principles | (29,041) | (29,041) | ||||||
Net income (loss) | 2,570 | 2,618 | (48) | |||||
Other comprehensive loss, net of tax | (31,392) | (31,408) | 16 | |||||
Exercise of stock options, net of tax withholding forfeitures | (361) | (352) | $ (9) | |||||
Exercise of stock options, net of tax withholding forfeitures (in shares) | 7 | |||||||
Conversion of restricted stock units into common stock, net of tax withholding forfeitures | (1,142) | (1,242) | $ 100 | |||||
Conversion of restricted stock units into common stock, net of tax withholding forfeitures (in shares) | 27 | |||||||
Share repurchase program | $ (75,270) | $ (75,270) | ||||||
Share repurchase program (in shares) | (1,100) | (1,050) | ||||||
Share-based compensation | $ 3,126 | 3,126 | ||||||
Redemption of rights agreement | (411) | (411) | ||||||
Preferred stock dividends | (8,733) | (8,733) | ||||||
Common stock dividends ($0.05 per share) | (2,066) | (2,066) | ||||||
Ending balance, shares at Apr. 01, 2018 | 52 | 50,335 | (9,332) | |||||
Ending balance at Apr. 01, 2018 | $ 1,292,146 | $ 1 | $ 503 | $ 1,125,364 | $ 795,977 | $ (500,864) | $ (129,434) | $ 599 |
Condensed Consolidated Stockho6
Condensed Consolidated Stockholders' Equity Statement (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Apr. 01, 2018 | Apr. 02, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared per share (in usd per share) | $ 0.05 | $ 0.05 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Apr. 01, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying Condensed Consolidated Financial Statements include Belden Inc. and all of its subsidiaries (the Company, us, we, or our). We eliminate all significant affiliate accounts and transactions in consolidation. The accompanying Condensed Consolidated Financial Statements presented as of any date other than December 31, 2017 : • Are prepared from the books and records without audit, and • Are prepared in accordance with the instructions for Form 10-Q and do not include all of the information required by accounting principles generally accepted in the United States for complete statements, but • Include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the financial statements. These Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Supplementary Data contained in our 2017 Annual Report on Form 10-K. Business Description We are a signal transmission solutions provider built around two global business platforms – Enterprise Solutions and Industrial Solutions. Our comprehensive portfolio of signal transmission solutions provides industry leading secure and reliable transmission of data, sound, and video for mission critical applications. Reporting Periods Our fiscal year and fiscal fourth quarter both end on December 31. Our fiscal first quarter ends on the Sunday falling closest to 91 days after December 31, which was April 1, 2018 , the 91st day of our fiscal year 2018 . Our fiscal second and third quarters each have 91 days. The three months ended April 2, 2017 included 92 days. Operating Segments Effective January 1, 2018, we changed our organizational structure and, as a result, now are reporting two segments. The segments formerly known as Broadcast Solutions and Enterprise Solutions now are presented as the Enterprise Solutions segment, and the segments formerly known as Industrial Solutions and Network Solutions now are presented as the Industrial Solutions segment. The reorganization allows us to further accelerate progress in key strategic areas and the segment consolidation properly aligns our external reporting with the way the businesses are now managed. We have recast the prior period segment information to conform to the change in the composition of these reportable segments. Reclassifications We have made certain reclassifications to the 2017 Condensed Consolidated Financial Statements including for the adoption of ASU 2017-07 and for our segment change with no impact to reported net income in order to conform to the 2018 presentation. See Note 5. Interim Periods of 2017 During the financial closing process for the fourth quarter of 2017, we determined that certain consolidated financial statement amounts were not recorded correctly in prior interim periods of 2017. We evaluated these errors and concluded that they were not material to any of our previously issued interim financial statements and did not require restatement of the quarters. The errors primarily related to recognizing revenue prior to satisfying all of the delivery criteria in one business within our Enterprise segment. All of the errors were corrected as of December 31, 2017. The impact of the errors in the first quarter of 2017 was an overstatement of revenues and net income of $6.1 million and $3.0 million , respectively. Fair Value Measurement Accounting guidance for fair value measurements specifies a hierarchy of valuation techniques based upon whether the inputs to those valuation techniques reflect assumptions other market participants would use based upon market data obtained from independent sources or reflect our own assumptions of market participant valuation. The hierarchy is broken down into three levels based on the reliability of the inputs as follows: • Level 1 – Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities; • Level 2 – Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets, or financial instruments for which significant inputs are observable, either directly or indirectly; and • Level 3 – Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. As of and during the three months ended April 1, 2018 and April 2, 2017 , we utilized Level 1 inputs to determine the fair value of cash equivalents, and we utilized Level 2 and Level 3 inputs to determine the fair value of net assets acquired in business combinations (see Note 3). We did not have any transfers between Level 1 and Level 2 fair value measurements during the three months ended April 1, 2018 and April 2, 2017 . Cash and Cash Equivalents We classify cash on hand and deposits in banks, including commercial paper, money market accounts, and other investments with an original maturity of three months or less, that we hold from time to time, as cash and cash equivalents. We periodically have cash equivalents consisting of short-term money market funds and other investments. As of April 1, 2018 , we did not have any such cash equivalents on hand. The primary objective of our investment activities is to preserve our capital for the purpose of funding operations. We do not enter into investments for trading or speculative purposes. Contingent Liabilities We have established liabilities for environmental and legal contingencies that are probable of occurrence and reasonably estimable, the amounts of which are currently not material. We accrue environmental remediation costs based on estimates of known environmental remediation exposures developed in consultation with our environmental consultants and legal counsel. We are, from time to time, subject to routine litigation incidental to our business. These lawsuits primarily involve claims for damages arising out of the use of our products, allegations of patent or trademark infringement, and litigation and administrative proceedings involving employment matters and commercial disputes. Based on facts currently available, we believe the disposition of the claims that are pending or asserted will not have a materially adverse effect on our financial position, results of operations, or cash flow. As of April 1, 2018 , we were party to standby letters of credit, bank guaranties, and surety bonds totaling $7.3 million , $2.7 million , and $2.4 million , respectively. Contingent Gain On July 5, 2011, our wholly-owned subsidiary, PPC Broadband, Inc. (PPC), filed an action for patent infringement against Corning Optical Communications RF LLC (Corning). The complaint alleged that Corning infringed two of PPC’s patents. In July 2015, a jury found that Corning willfully infringed both patents. In November 2016, following a series of post-trial motions, the trial judge issued rulings for a total judgment in our favor of approximately $61.3 million . In December 2016, Corning appealed the case to the U.S. Court of Appeals for the Federal Circuit. In March 2018, a panel of three judges of the United States Court of Appeals for the Federal Circuit issued a Rule 36 Affirmance, without written opinion, of the District Court's final judgment that Corning, among other things, willfully infringed the PPC universal compression patents at issue in the case, and that PPC should be awarded about $61.8 million as a result. On April 12, 2018, Corning filed a petition for re-hearing. We have not recorded any amounts in our consolidated financial statements related to this matter. Revenue Recognition We recognize revenue consistent with the principles as outlined in the following five step model: (1) identify the contract with the customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) each performance obligation is satisfied. Our contracts with customers may include multiple performance obligations. For such arrangements, we allocate revenues to each performance obligation based on its relative standalone selling price. Generally, the standalone selling prices are determined based upon the prices charged to customers. The transaction price for certain contracts are subject to variable consideration for estimated rebates, price allowances, invoicing adjustments, and product returns. We use the most likely amount method for estimating rebates and the expected value method for estimating price allowances, invoicing adjustments, and product returns. We record revisions to these estimates in the period in which the facts that give rise to each revision become known. Taxes collected from customers and remitted to governmental authorities are not included in our revenues. We record deferred revenues when cash payments are received or due in advance of our performance. Our payment terms vary by the type and location of our customer and the products or services offered. The term between invoicing and when payment is due is generally not significant. For certain products or services and customer types, we require payment before the products or services are delivered to the customer. Sales commissions for which the related service or support contract extends beyond one year are capitalized in other current or long-lived assets and recognized as expense over the related service or support period. In the event the related service or support period is twelve months or less, we apply the practical expedient and expense the sales commissions when incurred. These costs are recorded within selling, general and administrative expenses. Subsequent Events We have evaluated subsequent events after the balance sheet date through the financial statement issuance date for appropriate accounting and disclosure. Current-Year Adoption of Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which replaced most existing revenue recognition guidance in U.S. GAAP. The core principle of the ASU is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. ASU 2014-09 requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. We adopted ASU 2014-09 on January 1, 2018, using the modified retrospective method of adoption. Adoption resulted in a $2.6 million , net of tax increase to retained earnings. This adjustment primarily relates to the deferral of costs to obtain a contract that were previously expensed at the beginning of the contract period. In August 2016, the FASB issued Accounting Standards Update No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . The new guidance addresses how the following eight specific cash flow items are to be presented: Debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. We adopted ASU 2016-15 on January 1, 2018. Adoption had no material impact on our statement of cash flows during the quarter ended April 1, 2018. In October 2016, the FASB issued Accounting Standards Update No. 2016-16, Intra-Entity Transfers of Assets Other Than Inventory (ASU 2016-16), which requires recognition of the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Consequently, the standard eliminates the exception to the recognition of current and deferred income taxes for an intra-entity asset transfer other than for inventory until the asset has been sold to an outside party. We adopted ASU 2016-16 on January 1, 2018. Adoption resulted in a $3.0 million and $46.9 million decrease to other current assets and other long-lived assets, respectively, as well as an $18.2 million increase in deferred income tax assets and a $31.7 million decrease to retained earnings on January 1, 2018. Adoption had no material impact on our results of operations. In March 2017, the FASB issued Accounting Standards Update No. 2017-07, Compensation - Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (ASU 2017-07), which requires an entity to report the service cost component in the same line item or items as other compensation costs arising from the service rendered by their employees during the period. The other components of net benefit cost are required to be presented in the Statement of Operations separately from the service cost component after Operating Income. Additionally, only the service cost component is eligible for capitalization, when applicable. The standard requires the amendments to be applied retrospectively for the presentation of the service cost component and the other cost components of net periodic pension cost and net periodic OPEB cost in the Statement of Operations and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension and OPEB costs. We adopted ASU 2017-07 on January 1, 2018, and elected to use the practical expedient related to the retrospective presentation requirements. Adoption resulted in a $0.3 million increase to operating income, but no change to net income during the quarter ended April 2, 2017. Pending Adoption of Recent Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (ASU 2016-02), a leasing standard for both lessees and lessors. Under its core principle, a lessee will recognize lease assets and liabilities on the balance sheet for all arrangements with terms longer than 12 months. Lessor accounting remains largely consistent with existing U.S. generally accepted accounting principles. The new standard will be effective for us beginning January 1, 2019. Early adoption is permitted. The standard requires the use of a modified retrospective transition method. We are still evaluating the effect that ASU 2016-02 will have on our consolidated financial statements and related disclosures, but our initial assessment indicates that it will have a material impact to total assets and liabilities as we will be required to recognize lease assets and liabilities for all operating leases in which we are the lessee. In August 2017, the FASB issued Accounting Standards Update No. ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . The new guidance better aligns an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The new guidance also makes certain targeted improvements to simplify the application of hedge accounting guidance and ease the administrative burden of hedge documentation requirements and assessing hedge effectiveness. The standard is effective for fiscal years beginning after December 15, 2018, and early adoption is permitted. We do not expect the standard to have a material impact on our consolidated financial statements and related disclosures. In January 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed income (“GILTI”) provisions of the Tax Cuts and Jobs Act (the “Act”). The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The guidance indicates that either accounting for deferred taxes related to GILTI inclusions or to treat any taxes on GILTI inclusions as a period cost are both acceptable methods subject to an accounting policy election. Pending further anticipated clarification and guidance related to the application of the GILTI provisions and their impact to Belden, we intend to further assess the materiality of the anticipated GILTI inclusion before making a policy election. |
Revenues
Revenues | 3 Months Ended |
Apr. 01, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues On January 1, 2018, we adopted Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with the accounting standards in effect for those periods. We recorded a net increase to retained earnings of $2.6 million as of January 1, 2018 due to the cumulative impact of adopting Topic 606, with the impact primarily related to sales commissions and software revenues within our Industrial Solutions segment. The impact to revenues for the three months ended April 1, 2018 was a decrease of $0.1 million as a result of applying Topic 606. Revenues are recognized when control of the promised goods or services is transferred to our customers and in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Taxes collected from customers and remitted to governmental authorities are not included in our revenues. The following tables present our revenues disaggregated by major product category. Cable & Connectivity Networking, Software & Security Total Revenues Three Months Ended April 1, 2018 (In thousands) Enterprise Solutions $ 234,467 $ 114,657 $ 349,124 Industrial Solutions 162,730 93,711 256,441 Total $ 397,197 $ 208,368 $ 605,565 Three Months Ended April 2, 2017 Enterprise Solutions $ 234,181 $ 80,097 $ 314,278 Industrial Solutions 146,311 90,792 237,103 Total $ 380,492 $ 170,889 $ 551,381 The following tables present our revenues disaggregated by geography, based on the location of the customer purchasing the product. Americas EMEA APAC Total Revenues Three Months Ended April 1, 2018 (In thousands) Enterprise Solutions $ 225,279 $ 73,329 $ 50,516 $ 349,124 Industrial Solutions 149,812 72,592 34,037 256,441 Total $ 375,091 $ 145,921 $ 84,553 $ 605,565 Three Months Ended April 2, 2017 Enterprise Solutions $ 215,128 $ 48,580 $ 50,570 $ 314,278 Industrial Solutions 142,193 64,285 30,625 237,103 Total $ 357,321 $ 112,865 $ 81,195 $ 551,381 The following tables present our revenues disaggregated by products, including software products, and support and services. Products Support & Services Total Revenues Three Months Ended April 1, 2018 (In thousands) Enterprise Solutions $ 331,749 $ 17,375 $ 349,124 Industrial Solutions 224,647 31,794 256,441 Total $ 556,396 $ 49,169 $ 605,565 Three Months Ended April 2, 2017 Enterprise Solutions $ 293,499 $ 20,779 $ 314,278 Industrial Solutions 202,919 34,184 237,103 Total $ 496,418 $ 54,963 $ 551,381 We generate revenues primarily by selling products that provide secure and reliable transmission of data, sound, and video for mission critical applications. We also generate revenues from providing support and professional services. We sell our products to distributors, end-users, installers, and directly to original equipment manufacturers. At times, we enter into arrangements that involve the delivery of multiple performance obligations. For these arrangements, revenue is allocated to each performance obligation based on its relative selling price and recognized when or as each performance obligation is satisfied. Most of our performance obligations related to the sale of products are satisfied at a point in time when control of the product is transferred based on the shipping terms of the arrangement. Generally, we determine relative selling price using the prices charged to customers. The amount of consideration we receive and revenue we recognize varies due to rebates, returns, and price adjustments. We estimate the expected rebates, returns, and price adjustments based on an analysis of historical experience, anticipated sales demand, and trends in product pricing. We adjust our estimate of revenue at the earlier of when the most likely amount of consideration we expect to receive changes or when the consideration becomes fixed. As a result, we recognized an increase to revenues of $0.2 million during the three months ended April 1, 2018 related to performance obligations satisfied in prior periods. Accrued rebates and accrued returns as of April 1, 2018 totaled $17.9 million and $6.9 million , respectively. Estimated price adjustments recognized against our gross accounts receivable balance as of April 1, 2018 totaled $25.7 million . Depending on the terms of an arrangement, we may defer the recognition of a portion of the consideration received because we have to satisfy a future obligation. Consideration allocated to support services under a support and maintenance contract is typically paid in advance and recognized ratably over the term of the service. Consideration allocated to professional services is recognized when or as the services are performed depending on the terms of the arrangement. As of January 1, 2018, total deferred revenue was $104.4 million , and $52.0 million of this amount was recognized as revenue during the three months ended April 1, 2018. Total deferred revenue was $97.8 million as of April 1, 2018. We expense sales commissions as incurred when the duration of the related revenue arrangement is one year or less. We capitalize sales commissions in other current or long-lived assets on our balance sheet when the duration of the related revenue arrangement is longer than one year, and we amortize it over the related revenue arrangement period. Total capitalized sales commissions was $2.4 million as of April 1, 2018. Total sales commissions costs were $6.1 million during the three months ended April 1, 2018. Sales commissions are recorded within selling, general and administrative expenses. |
Acquisitions
Acquisitions | 3 Months Ended |
Apr. 01, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Snell Advanced Media We acquired 100% of the outstanding ownership interest in Snell Advanced Media (SAM) on February 8, 2018 for a purchase price, net of cash acquired, of $92.9 million . The acquisition includes a potential earnout, which is based upon future earnings of SAM and Grass Valley combined through December 31, 2019. The maximum earnout consideration is $31.4 million , but based upon a third party valuation specialist using certain assumptions in a discounted cash flow model, the preliminary estimated fair value of the earnout included in the purchase price is $17.7 million . We assumed debt of $19.3 million and paid it off during the first quarter of 2018. SAM designs, manufactures, and sells innovative content production and distribution systems for the broadcast and media markets. SAM is located in the United Kingdom. The results of SAM have been included in our Consolidated Financial Statements from February 8, 2018, and are reported within the Enterprise Solutions segment. The following table summarizes the estimated, preliminary fair value of the assets acquired and the liabilities assumed as of February 8, 2018 (in thousands): Receivables $ 19,900 Inventory 17,605 Prepaid and other current assets 2,339 Property, plant, and equipment 9,212 Intangible assets 44,750 Goodwill 92,263 Deferred taxes 5,476 Other long-lived assets 4,306 Total assets acquired $ 195,851 Accounts payable $ 11,927 Accrued liabilities 17,960 Deferred revenue 4,000 Long-term debt 19,305 Postretirement benefits 49,131 Other long-term liabilities 591 Total liabilities assumed $ 102,914 Net assets $ 92,937 The above purchase price allocation is preliminary, and is subject to revision as additional information about the fair value of individual assets and liabilities becomes available. We are in the process of ensuring our accounting policies are applied at SAM. The preliminary measurement of receivables; inventories; property, plant and equipment; intangible assets; goodwill; deferred income taxes; deferred revenue; and other assets and liabilities are subject to change. A change in the estimated fair value of the net assets acquired will change the amount of the purchase price allocable to goodwill. A single estimate of fair value results from a complex series of judgments about future events and uncertainties and relies heavily on estimates and assumptions. The judgments we have used in estimating the preliminary fair values assigned to each class of acquired assets and assumed liabilities could materially affect the results of our operations. The preliminary fair value of acquired receivables is $19.9 million , which is equivalent to its gross contractual amount. For purposes of the above allocation, we based our estimate of the preliminary fair value for the acquired inventory; property, plant, and equipment; intangible assets; and deferred revenue on a preliminary valuation study performed by a third party valuation firm. We have estimated a preliminary fair value adjustment for inventories based on the estimated selling price of the work-in-process and finished goods acquired at the closing date less the sum of the costs to complete the work-in-process, the costs of disposal, and a reasonable profit allowance for our post acquisition selling efforts. To determine the value of the acquired property, plant, and equipment, we used various valuation methods, including both the market approach, which considers sales prices of similar assets in similar conditions (Level 2 valuation), and the cost approach, which considers the cost to replace the asset adjusted for depreciation (Level 3 valuation). We used various valuation methods including discounted cash flows, lost income, excess earnings, and relief from royalty to estimate the preliminary fair value of the identifiable intangible assets and deferred revenue (Level 3 valuation). Goodwill and other intangible assets reflected above were determined to meet the criteria for recognition apart from tangible assets acquired and liabilities assumed. The goodwill is primarily attributable to expected synergies and the assembled workforce. The expected synergies for the SAM acquisition may be gained from helping broadcast and media content creators, aggregators and distributors significantly improve their effectiveness and efficiency during a period of rapid change in technology, viewer and advertiser behavior and busines models. Our tax basis in the acquired goodwill is zero . The intangible assets related to the acquisition consisted of the following: Preliminary Fair Value Amortization Period (In thousands) (In years) Intangible assets subject to amortization: Developed technologies $ 32,500 5.0 Customer relationships 9,000 12.0 Sales backlog 1,750 0.3 Trademarks 1,500 2.0 Total intangible assets subject to amortization $ 44,750 Intangible assets not subject to amortization: Goodwill $ 92,263 n/a Total intangible assets not subject to amortization $ 92,263 Total intangible assets $ 137,013 Weighted average amortization period 6.1 years The amortizable intangible assets reflected in the table above were determined by us to have finite lives. The useful life for the developed technology intangible asset was based on the estimated time that the technology provides us with a competitive advantage and thus approximates the period and pattern of consumption of the intangible asset. The useful life for the customer relationship intangible asset was based on our forecasts of estimated sales from recurring customers. The useful life of the backlog intangible asset was based on our estimate of when the ordered items would ship. The useful life for the trademarks was based on the period of time we expect to continue to go to market using the trademarks. Our consolidated revenues and consolidated income before taxes for the three months ended April 1, 2018 included $20.8 million and $(2.8) million , respectively, from SAM. The loss before taxes from SAM included $2.2 million of amortization of intangible assets and $0.5 million of cost of sales related to the adjustment of acquired inventory to fair value. The following table illustrates the unaudited pro forma effect on operating results as if the SAM acquisition had been completed as of January 1, 2017. Three Months Ended April 1, 2018 April 2, 2017 (In thousands, except per share data) (Unaudited) Revenues $ 614,184 $ 579,371 Net income (loss) attributable to Belden common stockholders (1,072 ) 979 Diluted income (loss) per share attributable to Belden common stockholders $ (0.03 ) $ 0.02 For purposes of the pro forma disclosures, the three months ended April 2, 2017 includes nonrecurring expenses related to the acquisition, including severance, restructuring, and acquisition integration costs; amortization of the sales backlog intangible asset; and cost of sales arising from the adjustment of inventory to fair value of $9.2 million , $1.3 million , and $0.8 million , respectively. The above unaudited pro forma financial information is presented for informational purposes only and does not purport to represent what our results of operations would have been had we completed the acquisition on the date assumed, nor is it necessarily indicative of the results that may be expected in future periods. Pro forma adjustments exclude cost savings from any synergies resulting from the acquisition. Thinklogical Holdings, LLC We acquired 100% of the outstanding ownership interest in Thinklogical Holdings, LLC (Thinklogical) on May 31, 2017 for a purchase price, net of cash acquired, of $165.8 million . Thinklogical designs, manufactures, and markets high-bandwidth fiber matrix switches, video, and keyboard/video/mouse extender solutions, camera extenders, and console management solutions. Thinklogical is headquartered in Connecticut. The results of Thinklogical have been included in our Consolidated Financial Statements from May 31, 2017, and are reported within the Enterprise Solutions segment. The following table summarizes the estimated, preliminary fair value of the assets acquired and the liabilities assumed as of May 31, 2017 (in thousands): Receivables 4,355 Inventory 16,424 Prepaid and other current assets 320 Property, plant, and equipment 4,289 Intangible assets 73,400 Goodwill 71,252 Total assets acquired $ 170,040 Accounts payable $ 1,231 Accrued liabilities 1,353 Deferred revenue 1,702 Total liabilities assumed $ 4,286 Net assets $ 165,754 A single estimate of fair value results from a complex series of judgments about future events and uncertainties and relies heavily on estimates and assumptions. The judgments we have used in estimating the preliminary fair values assigned to each class of acquired assets and assumed liabilities could materially affect the results of our operations. The preliminary fair value of acquired receivables is $4.4 million , which is equivalent to its gross contractual amount. For purposes of the above allocation, we based our estimate of the preliminary fair value for the acquired inventory, intangible assets, and deferred revenue on a preliminary valuation study performed by a third party valuation firm. We have estimated a preliminary fair value adjustment for inventories based on the estimated selling price of the work-in-process and finished goods acquired at the closing date less the sum of the costs to complete the work-in-process, the costs of disposal, and a reasonable profit allowance for our post acquisition selling efforts. We used various valuation methods including discounted cash flows, lost income, excess earnings, and relief from royalty to estimate the preliminary fair value of the identifiable intangible assets and deferred revenue (Level 3 valuation). The determination of the fair value of the assets acquired and liabilities assumed and the allocation of the purchase price is substantially complete pending the completion of a stub period tax return that has yet to be filed. Goodwill and other intangible assets reflected above were determined to meet the criteria for recognition apart from tangible assets acquired and liabilities assumed. The goodwill is primarily attributable to expected synergies and the assembled workforce. The expected synergies for the Thinklogical acquisition primarily consist of utilizing Belden's fiber and connectivity portfolio with Thinklogical's connections between matrix switch, control systems, transmitters and source to expand our product portfolio across our segments to both existing and new customers. Our tax basis in the acquired goodwill is approximately $43.9 million and is deductible for tax purposes over a period of 15 years up to the amount of the tax basis. The intangible assets related to the acquisition consisted of the following: Preliminary Fair Value Amortization Period (In thousands) (In years) Intangible assets subject to amortization: Developed technologies $ 62,600 10.0 Customer relationships 6,500 8.0 Trademarks 2,900 10.0 Sales backlog 1,400 0.3 Total intangible assets subject to amortization $ 73,400 Intangible assets not subject to amortization: Goodwill $ 71,252 n/a Total intangible assets not subject to amortization $ 71,252 Total intangible assets $ 144,652 Weighted average amortization period 9.6 The amortizable intangible assets reflected in the table above were determined by us to have finite lives. The useful life for the customer relationship intangible asset was based on our forecasts of estimated sales from recurring customers. The useful life for the trademarks was based on the period of time we expect to continue to go to market using the trademarks. The useful life for the developed technology intangible asset was based on the estimated time that the technology provides us with a competitive advantage and thus approximates the period and pattern of consumption of the intangible asset. The useful life of the backlog intangible asset was based on our estimate of when the ordered items would ship. Our consolidated revenues and consolidated income before taxes for the three months ended April 1, 2018 included $7.8 million and $(2.2) million , respectively, from Thinklogical. The loss before taxes from Thinklogical included $3.2 million of amortization of intangible assets. The following table illustrates the unaudited pro forma effect on operating results as if the Thinklogical acquisition had been completed as of January 1, 2016. Three Months Ended April 2, 2017 (In thousands, except per share data) (Unaudited) Revenues $ 555,636 Net income attributable to Belden common stockholders 12,880 Diluted income per share attributable to Belden common stockholders $ 0.30 The above unaudited pro forma financial information is presented for informational purposes only and does not purport to represent what our results of operations would have been had we completed the acquisition on the date assumed, nor is it necessarily indicative of the results that may be expected in future periods. Pro forma adjustments exclude cost savings from any synergies resulting from the acquisition. |
Disposals
Disposals | 3 Months Ended |
Apr. 01, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposals | Disposals During the fourth quarter of 2016, we committed to a plan to sell our MCS business and Hirschmann JV. The MCS business operated in Germany and the United States and was part of the Industrial Solutions segment, and the Hirschmann JV was an equity method investment located in China. Effective December 31, 2017, we sold the MCS business and Hirschmann JV for a total purchase price of $40.2 million , of which $39.1 million was collected during the first quarter of 2018. |
Operating Segments
Operating Segments | 3 Months Ended |
Apr. 01, 2018 | |
Segment Reporting [Abstract] | |
Operating Segments | Operating Segments We are organized around two global business platforms: Enterprise Solutions and Industrial Solutions. Each of the global business platforms represents a reportable segment. Effective January 1, 2018, we changed our organizational structure and, as a result, now are reporting two segments. The segments formerly known as Broadcast Solutions and Enterprise Solutions now are presented as the Enterprise Solutions segment, and the segments formerly known as Industrial Solutions and Network Solutions now are presented as the Industrial Solutions segment. The reorganization allows us to further accelerate progress in key strategic areas and the segment consolidation properly aligns our external reporting with the way the businesses are now managed. We have recast the prior period segment information to conform to the change in the composition of these reportable segments. This change had no impact to our reporting units for purposes of goodwill impairment testing. The key measures of segment profit or loss reviewed by our chief operating decision maker are Segment Revenues and Segment EBITDA. Segment Revenues represent non-affiliate revenues and include revenues that would have otherwise been recorded by acquired businesses as independent entities but were not recognized in our Consolidated Statements of Operations due to the effects of purchase accounting and the associated write-down of acquired deferred revenue to fair value. Segment EBITDA excludes certain items, including depreciation expense; amortization of intangibles; asset impairment; severance, restructuring, and acquisition integration costs; purchase accounting effects related to acquisitions, such as the adjustment of acquired inventory and deferred revenue to fair value; and other costs. We allocate corporate expenses to the segments for purposes of measuring Segment EBITDA. Corporate expenses are allocated on the basis of each segment’s relative EBITDA prior to the allocation. Our measure of segment assets does not include cash, goodwill, intangible assets, deferred tax assets, or corporate assets. All goodwill is allocated to reporting units of our segments for purposes of impairment testing. Enterprise Solutions Industrial Solutions Total Segments (In thousands) As of and for the three months ended April 1, 2018 Segment revenues $ 350,990 $ 256,433 $ 607,423 Affiliate revenues 846 29 875 Segment EBITDA 57,452 46,426 103,878 Depreciation expense 7,220 4,645 11,865 Amortization of intangibles 11,170 13,248 24,418 Amortization of software development intangible assets 236 — 236 Severance, restructuring, and acquisition integration costs 14,534 5,860 20,394 Purchase accounting effects of acquisitions 502 — 502 Deferred revenue adjustments 1,858 — 1,858 Segment assets 747,971 432,473 1,180,444 As of and for the three months ended April 2, 2017 Segment revenues $ 314,278 $ 237,103 $ 551,381 Affiliate revenues 2,033 26 2,059 Segment EBITDA 49,523 43,847 93,370 Depreciation expense 6,548 4,835 11,383 Amortization of intangibles 10,439 13,230 23,669 Severance, restructuring, and acquisition integration costs 5,281 1,319 6,600 Segment assets 571,540 369,172 940,712 The following table is a reconciliation of the total of the reportable segments’ Revenues and EBITDA to consolidated revenues and consolidated income before taxes, respectively. Three Months Ended April 1, 2018 April 2, 2017 (In thousands) Total Segment Revenues $ 607,423 $ 551,381 Deferred revenue adjustments (1) (1,858 ) — Consolidated Revenues $ 605,565 $ 551,381 Total Segment EBITDA $ 103,878 $ 93,370 Amortization of intangibles (24,418 ) (23,669 ) Severance, restructuring, and acquisition integration costs (2) (20,394 ) (6,600 ) Depreciation expense (11,865 ) (11,383 ) Deferred revenue adjustments (1) (1,858 ) — Purchase accounting effects related to acquisitions (3) (502 ) — Amortization of software development costs (236 ) — Loss on sale of assets (94 ) — Income from equity method investment — 1,007 Eliminations (308 ) (1,128 ) Consolidated operating income 44,203 51,597 Interest expense, net (16,978 ) (23,506 ) Non-operating pension costs (275 ) (260 ) Loss on debt extinguishment (19,960 ) — Consolidated income before taxes $ 6,990 $ 27,831 (1) For the three months ended April 1, 2018 , our segment results include revenues that would have been recorded by acquired businesses had they remained as independent entities. Our consolidated results do not include these revenues due to the purchase accounting effect of recording deferred revenue at fair value. (2) See Note 9, Severance, Restructuring, and Acquisition Integration Activities, for details . (3) For the three months ended ended April 1, 2018 , we recognized cost of sales for the adjustment of acquired inventory to fair value related to the SAM acquisition. |
Income per Share
Income per Share | 3 Months Ended |
Apr. 01, 2018 | |
Earnings Per Share [Abstract] | |
Income per Share | Income per Share The following table presents the basis for the income per share computations: Three Months Ended April 1, 2018 April 2, 2017 (In thousands) Numerator: Net income $ 2,570 $ 25,581 Less: Net loss attributable to noncontrolling interest (48 ) (106 ) Less: Preferred stock dividends 8,733 8,733 Net income (loss) attributable to Belden common stockholders $ (6,115 ) $ 16,954 Denominator: Weighted average shares outstanding, basic 41,633 42,216 Effect of dilutive common stock equivalents — 459 Weighted average shares outstanding, diluted 41,633 42,675 For the three months ended April 1, 2018 and April 2, 2017 , diluted weighted average shares outstanding do not include outstanding equity awards of 0.5 million and 0.3 million , respectively, because to do so would have been anti-dilutive. In addition, for the three months ended April 1, 2018 and April 2, 2017 , diluted weighted average shares outstanding do not include outstanding equity awards of 0.2 million and 0.2 million , respectively, because the related performance conditions have not been satisfied. Furthermore, for both the three months ended April 1, 2018 and April 2, 2017 , diluted weighted average shares outstanding do not include the impact of preferred shares that are convertible into 6.9 million common shares, because deducting the preferred stock dividends from net income was more dilutive. For purposes of calculating basic earnings per share, unvested restricted stock units are not included in the calculation of basic weighted average shares outstanding until all necessary conditions have been satisfied and issuance of the shares underlying the restricted stock units is no longer contingent. Necessary conditions are not satisfied until the vesting date, at which time holders of our restricted stock units receive shares of our common stock. For purposes of calculating diluted earnings per share, unvested restricted stock units are included to the extent that they are dilutive. In determining whether unvested restricted stock units are dilutive, each issuance of restricted stock units is considered separately. Once a restricted stock unit has vested, it is included in the calculation of both basic and diluted weighted average shares outstanding. |
Inventories
Inventories | 3 Months Ended |
Apr. 01, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The major classes of inventories were as follows: April 1, 2018 December 31, 2017 (In thousands) Raw materials $ 157,869 $ 133,311 Work-in-process 42,950 35,807 Finished goods 161,852 153,377 Gross inventories 362,671 322,495 Excess and obsolete reserves (33,874 ) (25,269 ) Net inventories $ 328,797 $ 297,226 |
Long-Lived Assets
Long-Lived Assets | 3 Months Ended |
Apr. 01, 2018 | |
Property, Plant and Equipment [Abstract] | |
Long-Lived Assets | Long-Lived Assets Depreciation and Amortization Expense We recognized depreciation expense of $11.9 million and $11.4 million in the three months ended April 1, 2018 and April 2, 2017 , respectively. We recognized amortization expense related to our intangible assets of $24.6 million and $23.7 million in the three months ended April 1, 2018 and April 2, 2017 , respectively. |
Severance, Restructuring, and A
Severance, Restructuring, and Acquisition Integration Activities | 3 Months Ended |
Apr. 01, 2018 | |
Restructuring and Related Activities [Abstract] | |
Severance, Restructuring, and Acquisition Integration Activities | Severance, Restructuring, and Acquisition Integration Activities Grass Valley and SAM Integration Program: 2018 During the first quarter of 2018, we began a restructuring program to integrate our acquisition of SAM with Grass Valley. The restructuring and integration activities are focused on achieving desired cost savings by consolidating existing and acquired operating facilities and other support functions. We recognized $9.2 million of severance and other restructuring costs for this program during the three months ended April 1, 2018 . The costs were incurred by the Enterprise Solutions segment. We expect to incur approximately $41 million of additional severance and restructuring costs for this program, most of which will be incurred by the end of 2018. We also expect the program to generate approximately $44 million of savings on an annualized basis, which we will start realizing in the second half of 2018. Industrial Manufacturing Footprint Program: 2016 - 2018 In 2016, we began a program to consolidate our manufacturing footprint. The manufacturing consolidation is expected to be completed in 2018. We recognized $7.5 million and $5.7 million of severance and other restructuring costs for this program during the three months ended April 1, 2018 and April 2, 2017 , respectively. The costs were incurred by the Enterprise Solutions and Industrial Solutions segments, as the manufacturing locations involved in the program serve both platforms. To date, we have incurred a total of $55.9 million in severance and other restructuring costs, including manufacturing inefficiencies for this program. We expect the program to generate approximately $13 million of savings on an annualized basis, which we began to realize in the third quarter of 2017. The following table summarizes the costs by segment of the various programs described above as well as other immaterial programs and acquisition integration activities: Severance Other Restructuring and Integration Costs Total Costs Three Months Ended April 1, 2018 (In thousands) Enterprise Solutions $ 508 $ 14,026 $ 14,534 Industrial Solutions 52 5,808 5,860 Total $ 560 $ 19,834 $ 20,394 Three Months Ended April 2, 2017 Enterprise Solutions $ 901 $ 4,380 $ 5,281 Industrial Solutions — 1,319 1,319 Total $ 901 $ 5,699 $ 6,600 Of the total severance, restructuring, and acquisition integration costs recognized in the three months ended April 1, 2018 , $9.4 million , $9.4 million , and $1.6 million were included in cost of sales; selling, general and administrative expenses; and research and development, respectively. Of the total severance, restructuring, and acquisition integration costs recognized in the three months ended April 2, 2017 , $5.9 million , $0.7 million , and $0.0 million were included in cost of sales; selling, general and administrative expenses; and research and development, respectively. The other restructuring and integration costs primarily consisted of equipment transfer, costs to consolidate operating and support facilities, retention bonuses, relocation, travel, legal, and other costs. The majority of the other restructuring and integration costs related to these actions were paid as incurred or are payable within the next 60 days . There were no significant severance accrual balances as of April 1, 2018 or December 31, 2017 . |
Long-Term Debt and Other Borrow
Long-Term Debt and Other Borrowing Arrangements | 3 Months Ended |
Apr. 01, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Other Borrowing Arrangements | Long-Term Debt and Other Borrowing Arrangements The carrying values of our long-term debt were as follows: April 1, 2018 December 31, 2017 (In thousands) Revolving credit agreement due 2022 $ — $ — Senior subordinated notes: 3.875% Senior subordinated notes due 2028 432,320 — 3.375% Senior subordinated notes due 2027 555,840 540,810 4.125% Senior subordinated notes due 2026 247,040 240,360 2.875% Senior subordinated notes due 2025 370,560 360,540 5.25% Senior subordinated notes due 2024 11,291 200,000 5.50% Senior subordinated notes due 2023 70,852 242,522 Total senior subordinated notes 1,687,903 1,584,232 Less unamortized debt issuance costs (25,249 ) (23,484 ) Long-term debt $ 1,662,654 $ 1,560,748 Revolving Credit Agreement due 2022 Our Revolving Credit Agreement provides a $400.0 million multi-currency asset-based revolving credit facility (The Revolver). The borrowing base under the Revolver includes eligible accounts receivable; inventory; and property, plant and equipment of certain of our subsidiaries in the U.S., Canada, Germany, and the Netherlands. The maturity date of the Revolver is May 16, 2022. Interest on outstanding borrowings is variable, based upon LIBOR or other similar indices in foreign jurisdictions, plus a spread that ranges from 1.25% - 1.75% , depending upon our leverage position. We pay a commitment fee on our available borrowing capacity of 0.25% . In the event we borrow more than 90% of our borrowing base, we are subject to a fixed charge coverage ratio covenant. As of April 1, 2018 , we had no borrowings outstanding on the Revolver, and our available borrowing capacity was $333.4 million . Senior Subordinated Notes In March 2018, we completed an offering for €350.0 million ( $431.3 million at issuance) aggregate principal amount of 3.875% senior subordinated notes due 2028 (the 2028 Notes). The carrying value of the 2028 Notes as of April 1, 2018 is $432.3 million . The 2028 Notes are guaranteed on a senior subordinated basis by our current and future domestic subsidiaries. The 2028 Notes rank equal in right of payment with our senior subordinated notes due 2027, 2026, 2025, 2024, and 2023 and with any future subordinated debt, and they are subordinated to all of our senior debt and the senior debt of our subsidiary guarantors, including our Revolver. Interest is payable semiannually on March 15 and September 15 of each year, beginning on September 15, 2018. We paid approximately $7.1 million of fees associated with the issuance of the 2028 Notes, which will be amortized over the life of the 2028 Notes using the effective interest method. We used the net proceeds from this offering and cash on hand to repurchase the 2023 and 2024 Notes - see further discussion below. We have outstanding €450.0 million aggregate principal amount of 3.375% senior subordinated notes due 2027 (the 2027 Notes). The carrying value of the 2027 Notes as of April 1, 2018 is $555.8 million . The 2027 Notes are guaranteed on a senior subordinated basis by our current and future domestic subsidiaries. The 2027 Notes rank equal in right of payment with our senior subordinated notes due 2028, 2026, 2025, 2024, and 2023 and with any future subordinated debt, and they are subordinated to all of our senior debt and the senior debt of our subsidiary guarantors, including our Revolver. Interest is payable semiannually on January 15 and July 15 of each year. We have outstanding €200.0 million aggregate principal amount of 4.125% senior subordinated notes due 2026 (the 2026 Notes). The carrying value of the 2026 Notes as of April 1, 2018 is $247.0 million . The 2026 Notes are guaranteed on a senior subordinated basis by our current and future domestic subsidiaries. The 2026 Notes rank equal in right of payment with our senior subordinated notes due 2028, 2027, 2025, 2024, and 2023 and with any future subordinated debt, and they are subordinated to all of our senior debt and the senior debt of our subsidiary guarantors, including our Revolver. Interest is payable semiannually on April 15 and October 15 of each year. We have outstanding €300.0 million aggregate principal amount of 2.875% senior subordinated notes due 2025 (the 2025 Notes). The carrying value of the 2025 Notes as of April 1, 2018 is $370.6 million . The 2025 Notes are guaranteed on a senior subordinated basis by our current and future domestic subsidiaries. The 2025 Notes rank equal in right of payment with our senior subordinated notes due 2028, 2027, 2026, 2024, and 2023 and with any future subordinated debt, and they are subordinated to all of our senior debt and the senior debt of our subsidiary guarantors, including our Revolver. Interest is payable semiannually on March 15 and September 15 of each year. We had outstanding $200.0 million aggregate principal amount of 5.25% senior subordinated notes due 2024 (the 2024 Notes). In March 2018, we repurchased $188.7 million of the $200.0 million 2024 Notes outstanding for cash consideration of $199.8 million , including a prepayment penalty and recognized a $13.8 million loss on debt extinguishment including the write-off of unamortized debt issuance costs. The carrying value of the 2024 Notes as of April 1, 2018 is $11.3 million . The 2024 Notes are guaranteed on a senior subordinated basis by certain of our subsidiaries. The 2024 Notes rank equal in right of payment with our senior subordinated notes due 2028, 2027, 2026, 2025, and 2023 and with any future subordinated debt, and they are subordinated to all of our senior debt and the senior debt of our subsidiary guarantors, including our Revolver. Interest is payable semiannually on January 15 and July 15 of each year. We repurchased the remaining 2024 Notes outstanding on April 5, 2018. We had outstanding €200.0 million aggregate principal amount of 5.5% senior subordinated notes due 2023 (the 2023 Notes). In March 2018, we repurchased €143.1 million of the €200.0 million 2023 Notes outstanding for cash consideration of €147.8 million ( $182.1 million ), including a prepayment penalty and recognized a $6.2 million loss on debt extinguishment including the write-off of unamortized debt issuance costs. The carrying value of the 2023 Notes as of April 1, 2018 is $70.9 million . The 2023 Notes are guaranteed on a senior subordinated basis by certain of our subsidiaries. The notes rank equal in right of payment with our senior subordinated notes due 2028, 2027, 2026, 2025, and 2024 and with any future subordinated debt, and they are subordinated to all of our senior debt and the senior debt of our subsidiary guarantors, including our Revolver. Interest is payable semiannually on April 15 and October 15 of each year. We repurchased the remaining 2023 Notes outstanding on April 5, 2018. Fair Value of Long-Term Debt The fair value of our senior subordinated notes as of April 1, 2018 was approximately $1,685.8 million based on quoted prices of the debt instruments in inactive markets (Level 2 valuation). This amount represents the fair values of our senior subordinated notes with a carrying value of $1,687.9 million as of April 1, 2018 . |
Net Investment Hedge
Net Investment Hedge | 3 Months Ended |
Apr. 01, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Net Investment Hedge | Net Investment Hedge All of our euro denominated notes were issued by Belden Inc., a USD functional currency ledger. As of April 1, 2018 , all of our outstanding foreign denominated debt is designated as a net investment hedge on the foreign currency risk of our net investment in our euro foreign operations. The objective of the hedge is to protect the net investment in the foreign operation against adverse changes in exchange rates. The transaction gain or loss is reported in the cumulative translation adjustment section of other comprehensive income. The amount of the cumulative translation adjustment associated with these notes at April 1, 2018 was $39.2 million . As of April 2, 2017 , only our 2026 Notes were designated as a net investment hedge on the foreign currency risk of our net investment in our euro foreign operations, and the cumulative translation adjustment associated with the 2026 Notes at April 2, 2017 was $6.9 million |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 01, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We recognized income tax expense of $4.4 million for the three months ended April 1, 2018 , representing an effective tax rate of 63.2% . The effective tax rate was impacted by the following significant factors: - We recognized income tax expense of $1.8 million in the three months ended April 1, 2018 as a result of a change in our valuation allowance on foreign tax credits associated with our euro debt refinancing during the quarter. - We also recognized income tax expense of $0.5 million in the three months ended April 1, 2018 as a result of changes in our valuation allowance for the Tax Cuts and Jobs Act. The amount of this adjustment remains provisional under SAB 118. On December 22, 2017, the “Tax Cuts and Jobs Act” (the “Act”) was signed into law, making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017, the transition of U.S. international taxation from a worldwide tax system to a territorial tax system, and a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017. On December 22, 2017, Staff Accounting Bulletin No. 118 (“SAB 118”) was issued to address the application of US GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Act. During the three months ended April 1, 2018, we obtained additional information affecting the provisional amount initially recorded for the valuation allowance on certain foreign tax credits in 2017. As a result, we recorded an adjustment to the valuation allowance on certain foreign tax credits. Additional work is still necessary for a more detailed analysis of all provisional amounts associated with the Act including the remeasurement of certain deferred tax assets and liabilities, the one-time transition tax on the mandatory deemed repatriation of foreign earnings and the valuation allowance on certain foreign tax credits. We continue to evaluate the need for a provisional amount regarding the non-deductibility of certain covered employee compensation associated with the amendments to IRC section 162(m). As of the date of this filing, we reasonably believe no such provision should be recorded. Any subsequent adjustment to these amounts will be recorded to tax expense in the quarter of 2018 when the analysis is complete. Our income tax expense and effective tax rate in future periods may be impacted by many factors, including our geographic mix of income and changes in tax laws. We recognized income tax expense of $2.3 million for the three months ended April 2, 2017 , representing an effective tax rate of 8.1% . The effective tax rate was impacted by the following significant factors: - We recognized an income tax benefit of $3.4 million in the three months ended April 2, 2017 as a result of generating tax credits, primarily from the implementation of a foreign tax credit planning strategy. - Foreign tax rate differences reduced our income tax expense by approximately $2.9 million in the three months ended April 2, 2017. The statutory tax rates associated with our foreign earnings generally were lower than the 2017 statutory U.S. tax rate of 35% . This had the greatest impact on our income before taxes that is generated in Germany, Canada, and the Netherlands, which have statutory tax rates of approximately 28% , 26% , and 25% , respectively. |
Pension and Other Postretiremen
Pension and Other Postretirement Obligations | 3 Months Ended |
Apr. 01, 2018 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Obligations | Pension and Other Postretirement Obligations The following table provides the components of net periodic benefit costs for our pension and other postretirement benefit plans: Pension Obligations Other Postretirement Obligations Three Months Ended April 1, 2018 April 2, 2017 April 1, 2018 April 2, 2017 (In thousands) Service cost $ 1,133 $ 1,093 $ 13 $ 13 Interest cost 1,876 1,695 264 327 Expected return on plan assets (2,520 ) (2,361 ) — — Amortization of prior service credit (10 ) (11 ) — — Actuarial losses 665 587 — 23 Net periodic benefit cost $ 1,144 $ 1,003 $ 277 $ 363 |
Comprehensive Income and Accumu
Comprehensive Income and Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Apr. 01, 2018 | |
Equity [Abstract] | |
Comprehensive Income and Accumulated Other Comprehensive Income (Loss) | Comprehensive Income and Accumulated Other Comprehensive Income (Loss) The following table summarizes total comprehensive income (loss): Three Months Ended April 1, 2018 April 2, 2017 (In thousands) Net income $ 2,570 $ 25,581 Foreign currency translation loss, net of $0.5 million and $0.1 million tax, respectively (31,795 ) (9,836 ) Adjustments to pension and postretirement liability, net of $0.3 million and $0.2 million tax, respectively 403 368 Total comprehensive income (loss) (28,822 ) 16,113 Less: Comprehensive loss attributable to noncontrolling interest (32 ) (163 ) Comprehensive income (loss) attributable to Belden $ (28,790 ) $ 16,276 The accumulated balances related to each component of other comprehensive income (loss), net of tax, are as follows: Foreign Currency Translation Component Pension and Other Postretirement Benefit Plans Accumulated Other Comprehensive Income (Loss) (In thousands) Balance at December 31, 2017 $ (69,691 ) $ (28,335 ) $ (98,026 ) Other comprehensive loss attributable to Belden before reclassifications (31,811 ) — (31,811 ) Amounts reclassified from accumulated other comprehensive loss — 403 403 Net current period other comprehensive gain (loss) attributable to Belden (31,811 ) 403 (31,408 ) Balance at April 1, 2018 $ (101,502 ) $ (27,932 ) $ (129,434 ) The following table summarizes the effects of reclassifications from accumulated other comprehensive income (loss) for the three months ended April 1, 2018 : Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Consolidated Statements of Operations and Comprehensive Income (In thousands) Amortization of pension and other postretirement benefit plan items: Actuarial losses $ 665 (1) Prior service credit (10 ) (1) Total before tax 655 Tax benefit (252 ) Total net of tax $ 403 (1) The amortization of these accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit costs (see Note 13). |
Preferred Stock
Preferred Stock | 3 Months Ended |
Apr. 01, 2018 | |
Equity [Abstract] | |
Preferred Stock | Preferred Stock In 2016, we issued 5.2 million depositary shares, each of which represents 1/100th interest in a share of 6.75% Series B Mandatory Convertible Preferred Stock (the Preferred Stock), for an offering price of $100 per depositary share. Holders of the Preferred Stock may elect to convert their shares into common stock at any time prior to the mandatory conversion date. Unless earlier converted, each share of Preferred Stock will automatically convert into common stock on or around July 15, 2019 into between 120.46 and 132.50 shares of Belden common stock, subject to customary anti-dilution adjustments. This represents a range of 6.2 million to 6.9 million shares of Belden common stock to be issued upon conversion. The number of shares of Belden common stock issuable upon the mandatory conversion of the Preferred Stock will be determined based upon the volume-weighted average price of Belden’s common stock over the 20 day trading period beginning on, and including, the 22nd scheduled trading day prior to July 15, 2019. The net proceeds from this offering were approximately $501 million . With respect to dividend and liquidation rights, the Preferred Stock ranks senior to our common stock and junior to all of our existing and future indebtedness. During each of the three months ended April 1, 2018 and April 2, 2017 , the Preferred Stock accrued $8.7 million of dividends. |
Share Repurchases
Share Repurchases | 3 Months Ended |
Apr. 01, 2018 | |
Text Block [Abstract] | |
Share Repurchases | Share Repurchases On May 25, 2017, our Board of Directors authorized a share repurchase program, which allows us to purchase up to $200.0 million of our common stock through open market repurchases, negotiated transactions, or other means, in accordance with applicable securities laws and other restrictions. This program is funded with cash on hand and cash flows from operating activities. The program does not have an expiration date and may be suspended at any time at the discretion of the Company. During the three months ended April 1, 2018 , we repurchased 1.1 million shares of our common stock under the share repurchase program for an aggregate cost of $75.3 million and an average price per share of $71.67 . |
Subsequent Events
Subsequent Events | 3 Months Ended |
Apr. 01, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On March 27, 2018, our Board of Directors authorized the redemption of all outstanding preferred share purchase rights issued pursuant to the then existing Rights Agreement (commonly known as a “poison pill”). Under the former Rights Agreement, one right was attached to each outstanding share of common stock. The rights were redeemed at a redemption price of $0.01 per right, payable in cash. The redemption payment was made on April 6, 2018 to the holders of the rights as of the close of business on March 27, 2018. We accrued approximately $0.4 million for the redemption of the Rights Agreement as of April 1, 2018. On April 5, 2018, we repurchased the remaining €56.9 million of the €200.0 million 2023 Notes outstanding as well as $11.3 million of the $200.0 million 2024 Notes outstanding, and we expect to recognize a loss on debt extinguishment of approximately $3.0 million in the second quarter. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Apr. 01, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying Condensed Consolidated Financial Statements include Belden Inc. and all of its subsidiaries (the Company, us, we, or our). We eliminate all significant affiliate accounts and transactions in consolidation. The accompanying Condensed Consolidated Financial Statements presented as of any date other than December 31, 2017 : • Are prepared from the books and records without audit, and • Are prepared in accordance with the instructions for Form 10-Q and do not include all of the information required by accounting principles generally accepted in the United States for complete statements, but • Include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the financial statements. These Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Supplementary Data contained in our 2017 Annual Report on Form 10-K |
Business Description | Business Description We are a signal transmission solutions provider built around two global business platforms – Enterprise Solutions and Industrial Solutions. Our comprehensive portfolio of signal transmission solutions provides industry leading secure and reliable transmission of data, sound, and video for mission critical applications. |
Reporting Periods | Reporting Periods Our fiscal year and fiscal fourth quarter both end on December 31. Our fiscal first quarter ends on the Sunday falling closest to 91 days after December 31, which was April 1, 2018 , the 91st day of our fiscal year 2018 . Our fiscal second and third quarters each have 91 days. The three months ended April 2, 2017 included 9 |
Operating Segments | Operating Segments Effective January 1, 2018, we changed our organizational structure and, as a result, now are reporting two segments. The segments formerly known as Broadcast Solutions and Enterprise Solutions now are presented as the Enterprise Solutions segment, and the segments formerly known as Industrial Solutions and Network Solutions now are presented as the Industrial Solutions segment. The reorganization allows us to further accelerate progress in key strategic areas and the segment consolidation properly aligns our external reporting with the way the businesses are now managed. We have recast the prior period segment information to conform to the change in the composition of these reportable segments. |
Reclassifications | Reclassifications We have made certain reclassifications to the 2017 Condensed Consolidated Financial Statements including for the adoption of ASU 2017-07 and for our segment change with no impact to reported net income in order to conform to the 2018 presentation. See Note 5. |
Fair Value Measurement | Fair Value Measurement Accounting guidance for fair value measurements specifies a hierarchy of valuation techniques based upon whether the inputs to those valuation techniques reflect assumptions other market participants would use based upon market data obtained from independent sources or reflect our own assumptions of market participant valuation. The hierarchy is broken down into three levels based on the reliability of the inputs as follows: • Level 1 – Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities; • Level 2 – Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets, or financial instruments for which significant inputs are observable, either directly or indirectly; and • Level 3 – Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. As of and during the three months ended April 1, 2018 and April 2, 2017 , we utilized Level 1 inputs to determine the fair value of cash equivalents, and we utilized Level 2 and Level 3 inputs to determine the fair value of net assets acquired in business combinations (see Note 3). |
Cash and Cash Equivalents | Cash and Cash Equivalents We classify cash on hand and deposits in banks, including commercial paper, money market accounts, and other investments with an original maturity of three months or less, that we hold from time to time, as cash and cash equivalents. We periodically have cash equivalents consisting of short-term money market funds and other investments. As of April 1, 2018 , we did not have any such cash equivalents on hand. The primary objective of our investment activities is to preserve our capital for the purpose of funding operations. We do not enter into investments for trading or speculative purposes. |
Contingent Liabilities | Contingent Liabilities We have established liabilities for environmental and legal contingencies that are probable of occurrence and reasonably estimable, the amounts of which are currently not material. We accrue environmental remediation costs based on estimates of known environmental remediation exposures developed in consultation with our environmental consultants and legal counsel. We are, from time to time, subject to routine litigation incidental to our business. These lawsuits primarily involve claims for damages arising out of the use of our products, allegations of patent or trademark infringement, and litigation and administrative proceedings involving employment matters and commercial disputes. Based on facts currently available, we believe the disposition of the claims that are pending or asserted will not have a materially adverse effect on our financial position, results of operations, or cash flow. |
Revenue Recognition | Revenue Recognition We recognize revenue consistent with the principles as outlined in the following five step model: (1) identify the contract with the customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) each performance obligation is satisfied. Our contracts with customers may include multiple performance obligations. For such arrangements, we allocate revenues to each performance obligation based on its relative standalone selling price. Generally, the standalone selling prices are determined based upon the prices charged to customers. The transaction price for certain contracts are subject to variable consideration for estimated rebates, price allowances, invoicing adjustments, and product returns. We use the most likely amount method for estimating rebates and the expected value method for estimating price allowances, invoicing adjustments, and product returns. We record revisions to these estimates in the period in which the facts that give rise to each revision become known. Taxes collected from customers and remitted to governmental authorities are not included in our revenues. We record deferred revenues when cash payments are received or due in advance of our performance. Our payment terms vary by the type and location of our customer and the products or services offered. The term between invoicing and when payment is due is generally not significant. For certain products or services and customer types, we require payment before the products or services are delivered to the customer. Sales commissions for which the related service or support contract extends beyond one year are capitalized in other current or long-lived assets and recognized as expense over the related service or support period. In the event the related service or support period is twelve months or less, we apply the practical expedient and expense the sales commissions when incurred. These costs are recorded within selling, general and administrative expenses. |
Subsequent Events | Subsequent Events We have evaluated subsequent events after the balance sheet date through the financial statement issuance date for appropriate accounting and disclosure. |
New Accounting Pronouncements | Current-Year Adoption of Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which replaced most existing revenue recognition guidance in U.S. GAAP. The core principle of the ASU is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. ASU 2014-09 requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. We adopted ASU 2014-09 on January 1, 2018, using the modified retrospective method of adoption. Adoption resulted in a $2.6 million , net of tax increase to retained earnings. This adjustment primarily relates to the deferral of costs to obtain a contract that were previously expensed at the beginning of the contract period. In August 2016, the FASB issued Accounting Standards Update No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . The new guidance addresses how the following eight specific cash flow items are to be presented: Debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. We adopted ASU 2016-15 on January 1, 2018. Adoption had no material impact on our statement of cash flows during the quarter ended April 1, 2018. In October 2016, the FASB issued Accounting Standards Update No. 2016-16, Intra-Entity Transfers of Assets Other Than Inventory (ASU 2016-16), which requires recognition of the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Consequently, the standard eliminates the exception to the recognition of current and deferred income taxes for an intra-entity asset transfer other than for inventory until the asset has been sold to an outside party. We adopted ASU 2016-16 on January 1, 2018. Adoption resulted in a $3.0 million and $46.9 million decrease to other current assets and other long-lived assets, respectively, as well as an $18.2 million increase in deferred income tax assets and a $31.7 million decrease to retained earnings on January 1, 2018. Adoption had no material impact on our results of operations. In March 2017, the FASB issued Accounting Standards Update No. 2017-07, Compensation - Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (ASU 2017-07), which requires an entity to report the service cost component in the same line item or items as other compensation costs arising from the service rendered by their employees during the period. The other components of net benefit cost are required to be presented in the Statement of Operations separately from the service cost component after Operating Income. Additionally, only the service cost component is eligible for capitalization, when applicable. The standard requires the amendments to be applied retrospectively for the presentation of the service cost component and the other cost components of net periodic pension cost and net periodic OPEB cost in the Statement of Operations and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension and OPEB costs. We adopted ASU 2017-07 on January 1, 2018, and elected to use the practical expedient related to the retrospective presentation requirements. Adoption resulted in a $0.3 million increase to operating income, but no change to net income during the quarter ended April 2, 2017. Pending Adoption of Recent Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (ASU 2016-02), a leasing standard for both lessees and lessors. Under its core principle, a lessee will recognize lease assets and liabilities on the balance sheet for all arrangements with terms longer than 12 months. Lessor accounting remains largely consistent with existing U.S. generally accepted accounting principles. The new standard will be effective for us beginning January 1, 2019. Early adoption is permitted. The standard requires the use of a modified retrospective transition method. We are still evaluating the effect that ASU 2016-02 will have on our consolidated financial statements and related disclosures, but our initial assessment indicates that it will have a material impact to total assets and liabilities as we will be required to recognize lease assets and liabilities for all operating leases in which we are the lessee. In August 2017, the FASB issued Accounting Standards Update No. ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . The new guidance better aligns an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The new guidance also makes certain targeted improvements to simplify the application of hedge accounting guidance and ease the administrative burden of hedge documentation requirements and assessing hedge effectiveness. The standard is effective for fiscal years beginning after December 15, 2018, and early adoption is permitted. We do not expect the standard to have a material impact on our consolidated financial statements and related disclosures. In January 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed income (“GILTI”) provisions of the Tax Cuts and Jobs Act (the “Act”). The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The guidance indicates that either accounting for deferred taxes related to GILTI inclusions or to treat any taxes on GILTI inclusions as a period cost are both acceptable methods subject to an accounting policy election. Pending further anticipated clarification and guidance related to the application of the GILTI provisions and their impact to Belden, we intend to further assess the materiality of the anticipated GILTI inclusion before making a policy election. |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables present our revenues disaggregated by major product category. Cable & Connectivity Networking, Software & Security Total Revenues Three Months Ended April 1, 2018 (In thousands) Enterprise Solutions $ 234,467 $ 114,657 $ 349,124 Industrial Solutions 162,730 93,711 256,441 Total $ 397,197 $ 208,368 $ 605,565 Three Months Ended April 2, 2017 Enterprise Solutions $ 234,181 $ 80,097 $ 314,278 Industrial Solutions 146,311 90,792 237,103 Total $ 380,492 $ 170,889 $ 551,381 The following tables present our revenues disaggregated by geography, based on the location of the customer purchasing the product. Americas EMEA APAC Total Revenues Three Months Ended April 1, 2018 (In thousands) Enterprise Solutions $ 225,279 $ 73,329 $ 50,516 $ 349,124 Industrial Solutions 149,812 72,592 34,037 256,441 Total $ 375,091 $ 145,921 $ 84,553 $ 605,565 Three Months Ended April 2, 2017 Enterprise Solutions $ 215,128 $ 48,580 $ 50,570 $ 314,278 Industrial Solutions 142,193 64,285 30,625 237,103 Total $ 357,321 $ 112,865 $ 81,195 $ 551,381 The following tables present our revenues disaggregated by products, including software products, and support and services. Products Support & Services Total Revenues Three Months Ended April 1, 2018 (In thousands) Enterprise Solutions $ 331,749 $ 17,375 $ 349,124 Industrial Solutions 224,647 31,794 256,441 Total $ 556,396 $ 49,169 $ 605,565 Three Months Ended April 2, 2017 Enterprise Solutions $ 293,499 $ 20,779 $ 314,278 Industrial Solutions 202,919 34,184 237,103 Total $ 496,418 $ 54,963 $ 551,381 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the estimated, preliminary fair value of the assets acquired and the liabilities assumed as of May 31, 2017 (in thousands): Receivables 4,355 Inventory 16,424 Prepaid and other current assets 320 Property, plant, and equipment 4,289 Intangible assets 73,400 Goodwill 71,252 Total assets acquired $ 170,040 Accounts payable $ 1,231 Accrued liabilities 1,353 Deferred revenue 1,702 Total liabilities assumed $ 4,286 Net assets $ 165,754 The following table summarizes the estimated, preliminary fair value of the assets acquired and the liabilities assumed as of February 8, 2018 (in thousands): Receivables $ 19,900 Inventory 17,605 Prepaid and other current assets 2,339 Property, plant, and equipment 9,212 Intangible assets 44,750 Goodwill 92,263 Deferred taxes 5,476 Other long-lived assets 4,306 Total assets acquired $ 195,851 Accounts payable $ 11,927 Accrued liabilities 17,960 Deferred revenue 4,000 Long-term debt 19,305 Postretirement benefits 49,131 Other long-term liabilities 591 Total liabilities assumed $ 102,914 Net assets $ 92,937 |
Schedule of Acquired Intangible Assets | The intangible assets related to the acquisition consisted of the following: Preliminary Fair Value Amortization Period (In thousands) (In years) Intangible assets subject to amortization: Developed technologies $ 62,600 10.0 Customer relationships 6,500 8.0 Trademarks 2,900 10.0 Sales backlog 1,400 0.3 Total intangible assets subject to amortization $ 73,400 Intangible assets not subject to amortization: Goodwill $ 71,252 n/a Total intangible assets not subject to amortization $ 71,252 Total intangible assets $ 144,652 Weighted average amortization period 9.6 The intangible assets related to the acquisition consisted of the following: Preliminary Fair Value Amortization Period (In thousands) (In years) Intangible assets subject to amortization: Developed technologies $ 32,500 5.0 Customer relationships 9,000 12.0 Sales backlog 1,750 0.3 Trademarks 1,500 2.0 Total intangible assets subject to amortization $ 44,750 Intangible assets not subject to amortization: Goodwill $ 92,263 n/a Total intangible assets not subject to amortization $ 92,263 Total intangible assets $ 137,013 Weighted average amortization period 6.1 years |
Schedule of Pro Forma Information | The following table illustrates the unaudited pro forma effect on operating results as if the Thinklogical acquisition had been completed as of January 1, 2016. Three Months Ended April 2, 2017 (In thousands, except per share data) (Unaudited) Revenues $ 555,636 Net income attributable to Belden common stockholders 12,880 Diluted income per share attributable to Belden common stockholders $ 0.30 The following table illustrates the unaudited pro forma effect on operating results as if the SAM acquisition had been completed as of January 1, 2017. Three Months Ended April 1, 2018 April 2, 2017 (In thousands, except per share data) (Unaudited) Revenues $ 614,184 $ 579,371 Net income (loss) attributable to Belden common stockholders (1,072 ) 979 Diluted income (loss) per share attributable to Belden common stockholders $ (0.03 ) $ 0.02 |
Operating Segments (Tables)
Operating Segments (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Segment Reporting [Abstract] | |
Operating Segment Information | Our measure of segment assets does not include cash, goodwill, intangible assets, deferred tax assets, or corporate assets. All goodwill is allocated to reporting units of our segments for purposes of impairment testing. Enterprise Solutions Industrial Solutions Total Segments (In thousands) As of and for the three months ended April 1, 2018 Segment revenues $ 350,990 $ 256,433 $ 607,423 Affiliate revenues 846 29 875 Segment EBITDA 57,452 46,426 103,878 Depreciation expense 7,220 4,645 11,865 Amortization of intangibles 11,170 13,248 24,418 Amortization of software development intangible assets 236 — 236 Severance, restructuring, and acquisition integration costs 14,534 5,860 20,394 Purchase accounting effects of acquisitions 502 — 502 Deferred revenue adjustments 1,858 — 1,858 Segment assets 747,971 432,473 1,180,444 As of and for the three months ended April 2, 2017 Segment revenues $ 314,278 $ 237,103 $ 551,381 Affiliate revenues 2,033 26 2,059 Segment EBITDA 49,523 43,847 93,370 Depreciation expense 6,548 4,835 11,383 Amortization of intangibles 10,439 13,230 23,669 Severance, restructuring, and acquisition integration costs 5,281 1,319 6,600 Segment assets 571,540 369,172 940,712 |
Reconciliation of Total Reportable Segments' Revenues and EBITDA to Consolidated Revenues and Consolidated Income from Continuing Operations Before Taxes | The following table is a reconciliation of the total of the reportable segments’ Revenues and EBITDA to consolidated revenues and consolidated income before taxes, respectively. Three Months Ended April 1, 2018 April 2, 2017 (In thousands) Total Segment Revenues $ 607,423 $ 551,381 Deferred revenue adjustments (1) (1,858 ) — Consolidated Revenues $ 605,565 $ 551,381 Total Segment EBITDA $ 103,878 $ 93,370 Amortization of intangibles (24,418 ) (23,669 ) Severance, restructuring, and acquisition integration costs (2) (20,394 ) (6,600 ) Depreciation expense (11,865 ) (11,383 ) Deferred revenue adjustments (1) (1,858 ) — Purchase accounting effects related to acquisitions (3) (502 ) — Amortization of software development costs (236 ) — Loss on sale of assets (94 ) — Income from equity method investment — 1,007 Eliminations (308 ) (1,128 ) Consolidated operating income 44,203 51,597 Interest expense, net (16,978 ) (23,506 ) Non-operating pension costs (275 ) (260 ) Loss on debt extinguishment (19,960 ) — Consolidated income before taxes $ 6,990 $ 27,831 (1) For the three months ended April 1, 2018 , our segment results include revenues that would have been recorded by acquired businesses had they remained as independent entities. Our consolidated results do not include these revenues due to the purchase accounting effect of recording deferred revenue at fair value. (2) See Note 9, Severance, Restructuring, and Acquisition Integration Activities, for details . (3) For the three months ended ended April 1, 2018 , we recognized cost of sales for the adjustment of acquired inventory to fair value related to the SAM acquisition. |
Income per Share (Tables)
Income per Share (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Earnings Per Share [Abstract] | |
Basis for Income Per Share Computations | The following table presents the basis for the income per share computations: Three Months Ended April 1, 2018 April 2, 2017 (In thousands) Numerator: Net income $ 2,570 $ 25,581 Less: Net loss attributable to noncontrolling interest (48 ) (106 ) Less: Preferred stock dividends 8,733 8,733 Net income (loss) attributable to Belden common stockholders $ (6,115 ) $ 16,954 Denominator: Weighted average shares outstanding, basic 41,633 42,216 Effect of dilutive common stock equivalents — 459 Weighted average shares outstanding, diluted 41,633 42,675 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Inventory Disclosure [Abstract] | |
Major Classes of Inventories | The major classes of inventories were as follows: April 1, 2018 December 31, 2017 (In thousands) Raw materials $ 157,869 $ 133,311 Work-in-process 42,950 35,807 Finished goods 161,852 153,377 Gross inventories 362,671 322,495 Excess and obsolete reserves (33,874 ) (25,269 ) Net inventories $ 328,797 $ 297,226 |
Severance, Restructuring, and30
Severance, Restructuring, and Acquisition Integration Activities (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Restructuring and Related Activities [Abstract] | |
Severance, Restructuring and Integration Costs by Segment | The following table summarizes the costs by segment of the various programs described above as well as other immaterial programs and acquisition integration activities: Severance Other Restructuring and Integration Costs Total Costs Three Months Ended April 1, 2018 (In thousands) Enterprise Solutions $ 508 $ 14,026 $ 14,534 Industrial Solutions 52 5,808 5,860 Total $ 560 $ 19,834 $ 20,394 Three Months Ended April 2, 2017 Enterprise Solutions $ 901 $ 4,380 $ 5,281 Industrial Solutions — 1,319 1,319 Total $ 901 $ 5,699 $ 6,600 |
Long-Term Debt and Other Borr31
Long-Term Debt and Other Borrowing Arrangements (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Debt Disclosure [Abstract] | |
Carrying Values of Long-Term Debt and Other Borrowing Arrangements | The carrying values of our long-term debt were as follows: April 1, 2018 December 31, 2017 (In thousands) Revolving credit agreement due 2022 $ — $ — Senior subordinated notes: 3.875% Senior subordinated notes due 2028 432,320 — 3.375% Senior subordinated notes due 2027 555,840 540,810 4.125% Senior subordinated notes due 2026 247,040 240,360 2.875% Senior subordinated notes due 2025 370,560 360,540 5.25% Senior subordinated notes due 2024 11,291 200,000 5.50% Senior subordinated notes due 2023 70,852 242,522 Total senior subordinated notes 1,687,903 1,584,232 Less unamortized debt issuance costs (25,249 ) (23,484 ) Long-term debt $ 1,662,654 $ 1,560,748 |
Pension and Other Postretirem32
Pension and Other Postretirement Obligations (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Costs | The following table provides the components of net periodic benefit costs for our pension and other postretirement benefit plans: Pension Obligations Other Postretirement Obligations Three Months Ended April 1, 2018 April 2, 2017 April 1, 2018 April 2, 2017 (In thousands) Service cost $ 1,133 $ 1,093 $ 13 $ 13 Interest cost 1,876 1,695 264 327 Expected return on plan assets (2,520 ) (2,361 ) — — Amortization of prior service credit (10 ) (11 ) — — Actuarial losses 665 587 — 23 Net periodic benefit cost $ 1,144 $ 1,003 $ 277 $ 363 |
Comprehensive Income and Accu33
Comprehensive Income and Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Equity [Abstract] | |
Total Comprehensive Income (Loss) | The following table summarizes total comprehensive income (loss): Three Months Ended April 1, 2018 April 2, 2017 (In thousands) Net income $ 2,570 $ 25,581 Foreign currency translation loss, net of $0.5 million and $0.1 million tax, respectively (31,795 ) (9,836 ) Adjustments to pension and postretirement liability, net of $0.3 million and $0.2 million tax, respectively 403 368 Total comprehensive income (loss) (28,822 ) 16,113 Less: Comprehensive loss attributable to noncontrolling interest (32 ) (163 ) Comprehensive income (loss) attributable to Belden $ (28,790 ) $ 16,276 |
Components of Other Comprehensive Income (Loss), Net of Tax | The accumulated balances related to each component of other comprehensive income (loss), net of tax, are as follows: Foreign Currency Translation Component Pension and Other Postretirement Benefit Plans Accumulated Other Comprehensive Income (Loss) (In thousands) Balance at December 31, 2017 $ (69,691 ) $ (28,335 ) $ (98,026 ) Other comprehensive loss attributable to Belden before reclassifications (31,811 ) — (31,811 ) Amounts reclassified from accumulated other comprehensive loss — 403 403 Net current period other comprehensive gain (loss) attributable to Belden (31,811 ) 403 (31,408 ) Balance at April 1, 2018 $ (101,502 ) $ (27,932 ) $ (129,434 ) |
Summary of Effects of Reclassifications from Accumulated Other Comprehensive Income (Loss) | The following table summarizes the effects of reclassifications from accumulated other comprehensive income (loss) for the three months ended April 1, 2018 : Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Consolidated Statements of Operations and Comprehensive Income (In thousands) Amortization of pension and other postretirement benefit plan items: Actuarial losses $ 665 (1) Prior service credit (10 ) (1) Total before tax 655 Tax benefit (252 ) Total net of tax $ 403 (1) The amortization of these accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit costs (see Note 13). |
Summary of Significant Accoun34
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | Jan. 01, 2018USD ($) | Jul. 05, 2011patent | Mar. 31, 2018USD ($) | Nov. 30, 2016USD ($) | Jul. 31, 2015patent | Apr. 01, 2018USD ($)Segment | Apr. 02, 2017USD ($) | Dec. 31, 2017USD ($) |
Significant Accounting Policies [Line Items] | ||||||||
Revenues | $ 605,565 | $ 551,381 | ||||||
Net income | $ 2,570 | 25,581 | ||||||
Number of global business platforms | Segment | 2 | |||||||
Number of operating segments | Segment | 2 | |||||||
Increase (decrease) in retained earnings | $ 795,977 | $ 833,610 | ||||||
Other current assets | (51,976) | (40,167) | ||||||
Other long-lived assets | (24,797) | (65,207) | ||||||
Deferred income taxes | 66,649 | $ 42,549 | ||||||
Operating income | 44,203 | 51,597 | ||||||
Accounting Standards Update 2014-09 | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Revenues | (100) | |||||||
Increase (decrease) in retained earnings | $ 2,600 | |||||||
Accounting Standards Update 2016-16 | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Increase (decrease) in retained earnings | (31,700) | |||||||
Other current assets | 3,000 | |||||||
Other long-lived assets | 46,900 | |||||||
Deferred income taxes | 18,200 | |||||||
Accounting Standards Update 2017-07 | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Operating income | $ 300 | |||||||
Corning | PPC | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Gain contingency, number of patents allegedly infringed upon | patent | 2 | |||||||
Gain contingency, number of patents infringed upon | patent | 2 | |||||||
Litigation settlement amount | $ 61,800 | $ 61,300 | ||||||
Standby Letters of Credit | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Loss contingency, range of possible loss, portion not accrued | 7,300 | |||||||
Bank Guaranties | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Loss contingency, range of possible loss, portion not accrued | 2,700 | |||||||
Surety Bonds | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Loss contingency, range of possible loss, portion not accrued | $ 2,400 | |||||||
Immaterial Overstatement In Prior Period | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Revenues | 6,100 | |||||||
Net income | $ 3,000 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Apr. 01, 2018 | Apr. 02, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Increase (decrease) in retained earnings | $ 795,977 | $ 833,610 | ||
Decrease in revenues | (605,565) | $ (551,381) | ||
Performance obligation satisfied in previous period | 200 | |||
Accrued rebates | 17,900 | |||
Accrued returns | 6,900 | |||
Estimated price adjustments, accounts receivable | 25,700 | |||
Contract with customer, deferred revenues | 97,800 | $ 104,400 | ||
Contract with customer, revenue recognized | 52,000 | |||
Deferred sales commission | 2,400 | |||
Sales commissions | 6,100 | |||
Accounting Standards Update 2014-09 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Increase (decrease) in retained earnings | $ 2,600 | |||
Decrease in revenues | $ 100 |
Revenues - Major Product Catego
Revenues - Major Product Category (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Apr. 02, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 605,565 | $ 551,381 |
Enterprise Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 349,124 | 314,278 |
Industrial Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 256,441 | 237,103 |
Cable & Connectivity | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 397,197 | 380,492 |
Cable & Connectivity | Enterprise Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 234,467 | 234,181 |
Cable & Connectivity | Industrial Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 162,730 | 146,311 |
Networking, Software & Security | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 208,368 | 170,889 |
Networking, Software & Security | Enterprise Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 114,657 | 80,097 |
Networking, Software & Security | Industrial Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 93,711 | $ 90,792 |
Revenues - Location of Customer
Revenues - Location of Customer (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Apr. 02, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 605,565 | $ 551,381 |
Enterprise Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 349,124 | 314,278 |
Industrial Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 256,441 | 237,103 |
Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 375,091 | 357,321 |
Americas | Enterprise Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 225,279 | 215,128 |
Americas | Industrial Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 149,812 | 142,193 |
EMEA | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 145,921 | 112,865 |
EMEA | Enterprise Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 73,329 | 48,580 |
EMEA | Industrial Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 72,592 | 64,285 |
APAC | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 84,553 | 81,195 |
APAC | Enterprise Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 50,516 | 50,570 |
APAC | Industrial Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 34,037 | $ 30,625 |
Revenues - Products and Service
Revenues - Products and Services (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Apr. 02, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 605,565 | $ 551,381 |
Enterprise Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 349,124 | 314,278 |
Industrial Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 256,441 | 237,103 |
Products | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 556,396 | 496,418 |
Products | Enterprise Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 331,749 | 293,499 |
Products | Industrial Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 224,647 | 202,919 |
Support & Services | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 49,169 | 54,963 |
Support & Services | Enterprise Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 17,375 | 20,779 |
Support & Services | Industrial Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 31,794 | $ 34,184 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) | Feb. 08, 2018 | May 31, 2017 | Apr. 01, 2018 | Apr. 02, 2017 |
Business Acquisition [Line Items] | ||||
Amortization of intangibles | $ 24,418,000 | $ 23,669,000 | ||
Severance, restructuring, and acquisition integration costs | 20,394,000 | 6,600,000 | ||
Snell Advanced Media | ||||
Business Acquisition [Line Items] | ||||
Percentage of outstanding shares acquired | 100.00% | |||
Acquisition price | $ 92,900,000 | |||
Maximum earnout consideration | 31,400,000 | |||
Estimated earnout consideration | 17,700,000 | |||
Long-term debt | 19,305,000 | |||
Receivables | 19,900,000 | |||
Tax basis in acquired goodwill | $ 0 | |||
Revenue of acquiree | 20,800,000 | |||
Loss before taxes of acquiree | 2,800,000 | |||
Amortization of intangibles | 2,200,000 | |||
Inventory adjustment | 500,000 | |||
Snell Advanced Media | Acquisition-related Costs | ||||
Business Acquisition [Line Items] | ||||
Amortization of intangibles | 1,300,000 | |||
Inventory adjustment | 800,000 | |||
Severance, restructuring, and acquisition integration costs | $ 9,200,000 | |||
Thinklogical Holdings LLC | ||||
Business Acquisition [Line Items] | ||||
Percentage of outstanding shares acquired | 100.00% | |||
Acquisition price | $ 165,800,000 | |||
Receivables | 4,355,000 | |||
Tax basis in acquired goodwill | $ 43,900,000 | |||
Revenue of acquiree | 7,800,000 | |||
Loss before taxes of acquiree | 2,200,000 | |||
Amortization of intangibles | $ 3,200,000 | |||
Business acquisition, goodwill, tax deductible period | 15 years |
Acquisitions - Schedule of Reco
Acquisitions - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Apr. 01, 2018 | Feb. 08, 2018 | Dec. 31, 2017 | May 31, 2017 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ||||
Goodwill | $ 1,569,970 | $ 1,478,257 | ||
Snell Advanced Media | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ||||
Receivables | $ 19,900 | |||
Inventory | 17,605 | |||
Prepaid and other current assets | 2,339 | |||
Property, plant, and equipment | 9,212 | |||
Intangible assets | 44,750 | |||
Goodwill | 92,263 | |||
Deferred taxes | 5,476 | |||
Other long-lived assets | 4,306 | |||
Total assets acquired | 195,851 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||
Accounts payable | 11,927 | |||
Accrued liabilities | 17,960 | |||
Deferred revenue | 4,000 | |||
Long-term debt | 19,305 | |||
Postretirement benefits | 49,131 | |||
Other long-term liabilities | 591 | |||
Total liabilities assumed | 102,914 | |||
Net assets | $ 92,937 | |||
Thinklogical Holdings LLC | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ||||
Receivables | $ 4,355 | |||
Inventory | 16,424 | |||
Prepaid and other current assets | 320 | |||
Property, plant, and equipment | 4,289 | |||
Intangible assets | 73,400 | |||
Goodwill | 71,252 | |||
Total assets acquired | 170,040 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||
Accounts payable | 1,231 | |||
Accrued liabilities | 1,353 | |||
Deferred revenue | 1,702 | |||
Total liabilities assumed | 4,286 | |||
Net assets | $ 165,754 |
Acquisitions - Schedule of Acqu
Acquisitions - Schedule of Acquired Intangible Assets (Details) - USD ($) $ in Thousands | Feb. 08, 2018 | May 31, 2017 |
Snell Advanced Media | ||
Business Acquisition [Line Items] | ||
Total intangible assets subject to amortization | $ 44,750 | |
Total intangible assets not subject to amortization | 92,263 | |
Total intangible assets | $ 137,013 | |
Amortization Period | 6 years 1 month 6 days | |
Snell Advanced Media | Goodwill | ||
Business Acquisition [Line Items] | ||
Total intangible assets not subject to amortization | $ 92,263 | |
Snell Advanced Media | Developed technologies | ||
Business Acquisition [Line Items] | ||
Total intangible assets subject to amortization | $ 32,500 | |
Amortization Period | 5 years | |
Snell Advanced Media | Customer relationships | ||
Business Acquisition [Line Items] | ||
Total intangible assets subject to amortization | $ 9,000 | |
Amortization Period | 12 years | |
Snell Advanced Media | Sales backlog | ||
Business Acquisition [Line Items] | ||
Total intangible assets subject to amortization | $ 1,750 | |
Amortization Period | 3 months 18 days | |
Snell Advanced Media | Trademarks | ||
Business Acquisition [Line Items] | ||
Total intangible assets subject to amortization | $ 1,500 | |
Amortization Period | 2 years | |
Thinklogical Holdings LLC | ||
Business Acquisition [Line Items] | ||
Total intangible assets subject to amortization | $ 73,400 | |
Total intangible assets not subject to amortization | 71,252 | |
Total intangible assets | $ 144,652 | |
Amortization Period | 9 years 7 months 6 days | |
Thinklogical Holdings LLC | Goodwill | ||
Business Acquisition [Line Items] | ||
Total intangible assets not subject to amortization | $ 71,252 | |
Thinklogical Holdings LLC | Developed technologies | ||
Business Acquisition [Line Items] | ||
Total intangible assets subject to amortization | $ 62,600 | |
Amortization Period | 10 years | |
Thinklogical Holdings LLC | Customer relationships | ||
Business Acquisition [Line Items] | ||
Total intangible assets subject to amortization | $ 6,500 | |
Amortization Period | 8 years | |
Thinklogical Holdings LLC | Sales backlog | ||
Business Acquisition [Line Items] | ||
Total intangible assets subject to amortization | $ 1,400 | |
Amortization Period | 3 months 19 days | |
Thinklogical Holdings LLC | Trademarks | ||
Business Acquisition [Line Items] | ||
Total intangible assets subject to amortization | $ 2,900 | |
Amortization Period | 10 years |
Acquisitions - Schedule of Pro
Acquisitions - Schedule of Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Apr. 02, 2017 | |
Snell Advanced Media | ||
Business Acquisition [Line Items] | ||
Revenues | $ 614,184 | $ 579,371 |
Net income (loss) attributable to Belden common stockholders | $ (1,072) | $ 979 |
Diluted income (loss) per share attributable to Belden common stockholders (in usd per share) | $ (0.03) | $ 0.02 |
Thinklogical Holdings LLC | ||
Business Acquisition [Line Items] | ||
Revenues | $ 555,636 | |
Net income (loss) attributable to Belden common stockholders | $ 12,880 | |
Diluted income (loss) per share attributable to Belden common stockholders (in usd per share) | $ 0.30 |
Disposals - Narrative (Details)
Disposals - Narrative (Details) - Hirschmann Jv - Discontinued Operations, Held-for-sale - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2018 | Dec. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposition, sales price | $ 40.2 | |
Proceeds from sale of business | $ 39.1 |
Operating Segments - Additional
Operating Segments - Additional Information (Detail) | 3 Months Ended |
Apr. 01, 2018Segment | |
Segment Reporting [Abstract] | |
Number of global business platforms | 2 |
Operating Segments - Operating
Operating Segments - Operating Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 01, 2018 | Apr. 02, 2017 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Depreciation expense | $ 11,900 | $ 11,400 | |
Amortization of intangibles | 24,418 | 23,669 | |
Severance, restructuring, and acquisition integration costs | 20,394 | 6,600 | |
Segment assets | 3,766,549 | $ 3,840,613 | |
Enterprise Solutions | |||
Segment Reporting Information [Line Items] | |||
Severance, restructuring, and acquisition integration costs | 14,534 | 5,281 | |
Industrial Solutions | |||
Segment Reporting Information [Line Items] | |||
Severance, restructuring, and acquisition integration costs | 5,860 | 1,319 | |
Reportable Segment | |||
Segment Reporting Information [Line Items] | |||
Segment revenues | 607,423 | 551,381 | |
Affiliate revenues | 875 | 2,059 | |
Segment EBITDA | 103,878 | 93,370 | |
Depreciation expense | 11,865 | 11,383 | |
Amortization of intangibles | 24,418 | 23,669 | |
Amortization of software development intangible assets | 236 | 0 | |
Severance, restructuring, and acquisition integration costs | 20,394 | 6,600 | |
Purchase accounting effects of acquisitions | 502 | 0 | |
Deferred revenue adjustments | 1,858 | 0 | |
Segment assets | 1,180,444 | 940,712 | |
Reportable Segment | Enterprise Solutions | |||
Segment Reporting Information [Line Items] | |||
Segment revenues | 350,990 | 314,278 | |
Affiliate revenues | 846 | 2,033 | |
Segment EBITDA | 57,452 | 49,523 | |
Depreciation expense | 7,220 | 6,548 | |
Amortization of intangibles | 11,170 | 10,439 | |
Amortization of software development intangible assets | 236 | ||
Severance, restructuring, and acquisition integration costs | 14,534 | 5,281 | |
Purchase accounting effects of acquisitions | 502 | ||
Deferred revenue adjustments | 1,858 | ||
Segment assets | 747,971 | 571,540 | |
Reportable Segment | Industrial Solutions | |||
Segment Reporting Information [Line Items] | |||
Segment revenues | 256,433 | 237,103 | |
Affiliate revenues | 29 | 26 | |
Segment EBITDA | 46,426 | 43,847 | |
Depreciation expense | 4,645 | 4,835 | |
Amortization of intangibles | 13,248 | 13,230 | |
Amortization of software development intangible assets | 0 | ||
Severance, restructuring, and acquisition integration costs | 5,860 | 1,319 | |
Purchase accounting effects of acquisitions | 0 | ||
Deferred revenue adjustments | 0 | ||
Segment assets | $ 432,473 | $ 369,172 |
Operating Segments - Reconcilia
Operating Segments - Reconciliation of Total Reportable Segments' Revenues and EBITDA to Consolidated Revenues and Consolidated Income from Continuing Operations Before Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Apr. 02, 2017 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Consolidated Revenues | $ 605,565 | $ 551,381 |
Amortization of intangibles | (24,418) | (23,669) |
Severance, restructuring, and acquisition integration costs | (20,394) | (6,600) |
Depreciation expense | (11,900) | (11,400) |
Operating income | 44,203 | 51,597 |
Interest expense, net | (16,978) | (23,506) |
Non-operating pension costs | (275) | (260) |
Loss on debt extinguishment | (19,960) | 0 |
Income before taxes | 6,990 | 27,831 |
Reportable Segment | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Total Segment Revenues | 607,423 | 551,381 |
Deferred revenue adjustments | (1,858) | 0 |
Consolidated Revenues | 605,565 | 551,381 |
Total Segment EBITDA | 103,878 | 93,370 |
Amortization of intangibles | (24,418) | (23,669) |
Severance, restructuring, and acquisition integration costs | (20,394) | (6,600) |
Depreciation expense | (11,865) | (11,383) |
Purchase accounting effects related to acquisitions | (502) | 0 |
Amortization of software development costs | (236) | 0 |
Loss on sale of assets | (94) | 0 |
Income from equity method investment | 0 | 1,007 |
Eliminations | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Operating income | $ (308) | $ (1,128) |
Income Per Share - Basis for In
Income Per Share - Basis for Income Per Share Computations (Detail) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Apr. 02, 2017 | |
Numerator: | ||
Net income | $ 2,570 | $ 25,581 |
Less: Net loss attributable to noncontrolling interest | (48) | (106) |
Less: Preferred stock dividends | 8,733 | 8,733 |
Net income (loss) attributable to Belden common stockholders | $ (6,115) | $ 16,954 |
Denominator: | ||
Weighted average shares outstanding, basic (in shares) | 41,633 | 42,216 |
Effect of dilutive common stock equivalents (in shares) | 0 | 459 |
Weighted average shares outstanding, diluted (in shares) | 41,633 | 42,675 |
Income Per Share - Additional I
Income Per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | |
Apr. 01, 2018 | Apr. 02, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive shares excluded from diluted weighted average shares outstanding | 0.5 | 0.3 |
Anti-dilutive shares excluded from diluted weighted average shares outstanding due to performance conditions not being met | 0.2 | 0.2 |
Convertible Preferred Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive shares excluded from diluted weighted average shares outstanding | 6.9 | 6.9 |
Inventories - Major Classes of
Inventories - Major Classes of Inventories (Detail) - USD ($) $ in Thousands | Apr. 01, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 157,869 | $ 133,311 |
Work-in-process | 42,950 | 35,807 |
Finished goods | 161,852 | 153,377 |
Gross inventories | 362,671 | 322,495 |
Excess and obsolete reserves | (33,874) | (25,269) |
Net inventories | $ 328,797 | $ 297,226 |
Long-Lived Assets - Additional
Long-Lived Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2018 | Apr. 02, 2017 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 11.9 | $ 11.4 |
Amortization of intangible assets | $ 24.6 | $ 23.7 |
Severance, Restructuring and Ac
Severance, Restructuring and Acquisition Integration Activities - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 27 Months Ended | |
Apr. 01, 2018 | Apr. 02, 2017 | Apr. 01, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
Severance, restructuring, and acquisition integration costs | $ 20,394 | $ 6,600 | |
Maximum | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and integration cost payable period | 60 days | ||
Cost of Sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance, restructuring, and acquisition integration costs | $ 9,400 | 5,900 | |
Selling, General and Administrative Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance, restructuring, and acquisition integration costs | 9,400 | 700 | |
Research and Development | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance, restructuring, and acquisition integration costs | 1,600 | 0 | |
Grass Valley And SAM Integration Program [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance, restructuring, and acquisition integration costs | 9,200 | ||
Additional severance and restructuring costs | 41,000 | $ 41,000 | |
Expected savings from the restructuring program | 44,000 | ||
Industrial Manufacturing Footprint Program | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance, restructuring, and acquisition integration costs | 7,500 | $ 5,700 | $ 55,900 |
Expected savings from the restructuring program | $ 13,000 |
Severance, Restructuring and 52
Severance, Restructuring and Acquisition Integration Activities - Severance, Restructuring and Integration Costs by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Apr. 02, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||
Total Costs | $ 20,394 | $ 6,600 |
Enterprise Solutions | ||
Restructuring Cost and Reserve [Line Items] | ||
Total Costs | 14,534 | 5,281 |
Industrial Solutions | ||
Restructuring Cost and Reserve [Line Items] | ||
Total Costs | 5,860 | 1,319 |
Severance | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance | 560 | 901 |
Severance | Enterprise Solutions | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance | 508 | 901 |
Severance | Industrial Solutions | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance | 52 | 0 |
Other Restructuring and Integration Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Other Restructuring and Integration Costs | 19,834 | 5,699 |
Other Restructuring and Integration Costs | Enterprise Solutions | ||
Restructuring Cost and Reserve [Line Items] | ||
Other Restructuring and Integration Costs | 14,026 | 4,380 |
Other Restructuring and Integration Costs | Industrial Solutions | ||
Restructuring Cost and Reserve [Line Items] | ||
Other Restructuring and Integration Costs | $ 5,808 | $ 1,319 |
Long-Term Debt and Other Borr53
Long-Term Debt and Other Borrowing Arrangements - Carrying Values of Long-Term Debt and Other Borrowing Arrangements (Detail) - USD ($) | Apr. 01, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Total senior subordinated notes | $ 1,687,903,000 | $ 1,584,232,000 |
Less unamortized debt issuance costs | (25,249,000) | (23,484,000) |
Long-term debt | 1,662,654,000 | 1,560,748,000 |
Revolving credit agreement due 2022 | ||
Debt Instrument [Line Items] | ||
Revolving credit agreement due 2022 | 0 | 0 |
3.875% Senior subordinated notes due 2028 | ||
Debt Instrument [Line Items] | ||
Total senior subordinated notes | $ 432,320,000 | $ 0 |
Senior subordinated notes interest rate | 3.875% | 3.875% |
3.375% Senior subordinated notes due 2027 | ||
Debt Instrument [Line Items] | ||
Total senior subordinated notes | $ 555,840,000 | $ 540,810,000 |
Senior subordinated notes interest rate | 3.375% | 3.375% |
4.125% Senior subordinated notes due 2026 | ||
Debt Instrument [Line Items] | ||
Total senior subordinated notes | $ 247,040,000 | $ 240,360,000 |
Senior subordinated notes interest rate | 4.125% | 4.125% |
2.875% Senior subordinated notes due 2025 | ||
Debt Instrument [Line Items] | ||
Total senior subordinated notes | $ 370,560,000 | $ 360,540,000 |
Senior subordinated notes interest rate | 2.875% | 2.875% |
5.25% Senior subordinated notes due 2024 | ||
Debt Instrument [Line Items] | ||
Total senior subordinated notes | $ 11,291,000 | $ 200,000,000 |
Senior subordinated notes interest rate | 5.25% | 5.25% |
5.50% Senior subordinated notes due 2023 | ||
Debt Instrument [Line Items] | ||
Total senior subordinated notes | $ 70,852,000 | $ 242,522,000 |
Senior subordinated notes interest rate | 5.50% | 5.50% |
Long-Term Debt and Other Borr54
Long-Term Debt and Other Borrowing Arrangements - Additional Information (Detail) | May 16, 2017USD ($) | Mar. 31, 2018EUR (€) | Mar. 31, 2018USD ($) | Apr. 01, 2018USD ($) | Apr. 02, 2017USD ($) | Apr. 01, 2018EUR (€) | Apr. 01, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Debt Instrument [Line Items] | |||||||||
Senior subordinated notes | $ 1,687,903,000 | $ 1,584,232,000 | |||||||
Loss on debt extinguishment | $ 19,960,000 | $ 0 | |||||||
Senior Subordinated Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Fair value of debt instrument | 1,685,800,000 | ||||||||
Revolving credit agreement due 2022 | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 400,000,000 | ||||||||
Commitment fee percentage | 0.25% | ||||||||
Fixed charge coverage, minimum threshold (as a percent) | 90.00% | ||||||||
Borrowings outstanding | 0 | $ 0 | |||||||
Available borrowing capacity | $ 333,400,000 | ||||||||
Revolving credit agreement due 2022 | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, basis spread on variable rate (as a percent) | 1.25% | ||||||||
Revolving credit agreement due 2022 | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, basis spread on variable rate (as a percent) | 1.75% | ||||||||
3.875% Senior subordinated notes due 2028 | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior subordinated notes interest rate | 3.875% | 3.875% | 3.875% | ||||||
Senior subordinated notes | $ 432,320,000 | $ 0 | |||||||
3.875% Senior subordinated notes due 2028 | Senior Subordinated Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal amount outstanding of senior subordinated notes | € 350,000,000 | $ 431,300,000 | |||||||
Senior subordinated notes interest rate | 3.875% | 3.875% | |||||||
Fees incurred to creditors and third parties | $ 7,100,000 | ||||||||
3.375% Senior subordinated notes due 2027 | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior subordinated notes interest rate | 3.375% | 3.375% | 3.375% | ||||||
Senior subordinated notes | $ 555,840,000 | $ 540,810,000 | |||||||
3.375% Senior subordinated notes due 2027 | Senior Subordinated Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal amount outstanding of senior subordinated notes | € | € 450,000,000 | ||||||||
Senior subordinated notes interest rate | 3.375% | 3.375% | |||||||
4.125% Senior subordinated notes due 2026 | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior subordinated notes interest rate | 4.125% | 4.125% | 4.125% | ||||||
Senior subordinated notes | $ 247,040,000 | $ 240,360,000 | |||||||
4.125% Senior subordinated notes due 2026 | Senior Subordinated Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal amount outstanding of senior subordinated notes | € | € 200,000,000 | ||||||||
2.875% Senior subordinated notes due 2025 | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior subordinated notes interest rate | 2.875% | 2.875% | 2.875% | ||||||
Senior subordinated notes | $ 370,560,000 | $ 360,540,000 | |||||||
2.875% Senior subordinated notes due 2025 | Senior Subordinated Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal amount outstanding of senior subordinated notes | € | € 300,000,000 | ||||||||
Senior subordinated notes interest rate | 2.875% | 2.875% | |||||||
Fair value of debt instrument | $ 370,600,000 | ||||||||
5.25% Senior subordinated notes due 2024 | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior subordinated notes interest rate | 5.25% | 5.25% | 5.25% | ||||||
Senior subordinated notes | $ 11,291,000 | $ 200,000,000 | |||||||
5.25% Senior subordinated notes due 2024 | Senior Subordinated Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal amount outstanding of senior subordinated notes | $ 200,000,000 | ||||||||
Senior subordinated notes interest rate | 5.25% | 5.25% | |||||||
Senior subordinated notes | $ 11,300,000 | ||||||||
Debt repurchased | $ 188,700,000 | ||||||||
Repayments of debt | $ 199,800,000 | ||||||||
Loss on debt extinguishment | (13,800,000) | ||||||||
5.50% Senior subordinated notes due 2023 | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior subordinated notes interest rate | 5.50% | 5.50% | 5.50% | ||||||
Senior subordinated notes | $ 70,852,000 | $ 242,522,000 | |||||||
5.50% Senior subordinated notes due 2023 | Senior Subordinated Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal amount outstanding of senior subordinated notes | € | € 200,000,000 | ||||||||
Senior subordinated notes interest rate | 5.50% | 5.50% | |||||||
Debt repurchased | € | € 143,100,000 | ||||||||
Repayments of debt | € 147,800,000 | 182,100,000 | |||||||
Loss on debt extinguishment | $ (6,200,000) |
Net Investment Hedge (Details)
Net Investment Hedge (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Apr. 02, 2017 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Foreign currency translation adjustment | $ (31,795) | $ (9,836) |
Senior Subordinate Notes | 4.125% Senior subordinated notes due 2026 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Foreign currency translation adjustment | $ 39,200 | $ 6,900 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Apr. 02, 2017 | |
Operating Loss Carryforwards [Line Items] | ||
Income tax (benefit) expense | $ 4,420 | $ 2,250 |
Effective tax rate | 63.20% | 8.10% |
Tax Cuts and Jobs Act of 2017, income tax expense | $ 500 | |
Income tax expense related to debt refinance | $ 1,800 | |
Income tax benefit from implementing a foreign tax credit planning strategy | $ 3,400 | |
Foreign tax benefit recognized | $ 2,900 | |
Federal statutory income tax rate (as a percent) | 35.00% | |
GERMANY | ||
Operating Loss Carryforwards [Line Items] | ||
Federal statutory income tax rate (as a percent) | 28.00% | |
CANADA | ||
Operating Loss Carryforwards [Line Items] | ||
Federal statutory income tax rate (as a percent) | 26.00% | |
NETHERLANDS | ||
Operating Loss Carryforwards [Line Items] | ||
Federal statutory income tax rate (as a percent) | 25.00% |
Pension and Other Postretirem57
Pension and Other Postretirement Obligations - Components of Net Periodic Benefit Costs (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Apr. 02, 2017 | |
Pension Obligations | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 1,133 | $ 1,093 |
Interest cost | 1,876 | 1,695 |
Expected return on plan assets | (2,520) | (2,361) |
Amortization of prior service credit | (10) | (11) |
Actuarial losses | 665 | 587 |
Net periodic benefit cost | 1,144 | 1,003 |
Other Postretirement Obligations | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 13 | 13 |
Interest cost | 264 | 327 |
Expected return on plan assets | 0 | 0 |
Amortization of prior service credit | 0 | 0 |
Actuarial losses | 0 | 23 |
Net periodic benefit cost | $ 277 | $ 363 |
Comprehensive Income and Accu58
Comprehensive Income and Accumulated Other Comprehensive Income (Loss) - Total Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Apr. 02, 2017 | |
Equity [Abstract] | ||
Net income | $ 2,570 | $ 25,581 |
Foreign currency translation loss, net of $0.5 million and $0.1 million tax, respectively | (31,795) | (9,836) |
Adjustments to pension and postretirement liability, net of $0.3 million and $0.2 million tax, respectively | 403 | 368 |
Total comprehensive income (loss) | (28,822) | 16,113 |
Less: Comprehensive loss attributable to noncontrolling interest | (32) | (163) |
Comprehensive income (loss) attributable to Belden | (28,790) | 16,276 |
Foreign currency translation, tax income (loss) | 500 | 100 |
Adjustments to pension and postretirement liability, tax | $ 300 | $ 200 |
Comprehensive Income and Accu59
Comprehensive Income and Accumulated Other Comprehensive Income (Loss) - Components of Other Comprehensive Income (Loss), Net of Tax (Detail) $ in Thousands | 3 Months Ended |
Apr. 01, 2018USD ($) | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Beginning balance | $ 1,434,866 |
Other comprehensive loss, net of tax | (31,392) |
Ending balance | 1,292,146 |
Foreign Currency Translation Component | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Beginning balance | (69,691) |
Other comprehensive loss attributable to Belden before reclassifications | (31,811) |
Amounts reclassified from accumulated other comprehensive loss | 0 |
Other comprehensive loss, net of tax | (31,811) |
Ending balance | (101,502) |
Pension and Other Postretirement Benefit Plans | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Beginning balance | (28,335) |
Other comprehensive loss attributable to Belden before reclassifications | 0 |
Amounts reclassified from accumulated other comprehensive loss | 403 |
Other comprehensive loss, net of tax | 403 |
Ending balance | (27,932) |
Accumulated Other Comprehensive Income (Loss) | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Beginning balance | (98,026) |
Other comprehensive loss attributable to Belden before reclassifications | (31,811) |
Amounts reclassified from accumulated other comprehensive loss | 403 |
Other comprehensive loss, net of tax | (31,408) |
Ending balance | $ (129,434) |
Comprehensive Income and Accu60
Comprehensive Income and Accumulated Other Comprehensive Income (Loss) - Summary of Effects of Reclassifications from Accumulated Other Comprehensive Income (Loss) (Detail) $ in Thousands | 3 Months Ended |
Apr. 01, 2018USD ($) | |
Pension and Other Postretirement Benefit Plans | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |
Total net of tax | $ (403) |
Reclassification out of Accumulated Other Comprehensive Income | Actuarial losses | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |
Total before tax | 665 |
Reclassification out of Accumulated Other Comprehensive Income | Prior service credit | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |
Total before tax | (10) |
Reclassification out of Accumulated Other Comprehensive Income | Pension and Other Postretirement Benefit Plans | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |
Total before tax | 655 |
Tax benefit | (252) |
Total net of tax | $ 403 |
Preferred Stock (Details)
Preferred Stock (Details) $ / shares in Units, $ in Thousands | Jul. 15, 2019shares | Apr. 01, 2018USD ($) | Apr. 02, 2017USD ($) | Dec. 31, 2016USD ($)trading_day$ / sharesshares |
Class of Stock [Line Items] | ||||
Preferred stock dividends | $ | $ 8,733 | $ 8,733 | ||
Depository Shares | ||||
Class of Stock [Line Items] | ||||
Depository shares issued | 5,200,000 | |||
Interest in preferred stock per depository share | 0.01 | |||
Six Point Seven Five Percentage Series B Mandatory Convertible Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Percentage of issued shares | 6.75% | |||
Offering price per share (in dollars per share) | $ / shares | $ 100 | |||
Threshold trading day period | trading_day | 20 | |||
Proceeds from offering, net | $ | $ 501,000 | |||
Six Point Seven Five Percentage Series B Mandatory Convertible Preferred Stock | Scenario, Forecast | Minimum | ||||
Class of Stock [Line Items] | ||||
Preferred stock converted in to common stock (in shares) | 120.46 | |||
Number of common stock issued upon conversion (in shares) | 6,200,000 | |||
Six Point Seven Five Percentage Series B Mandatory Convertible Preferred Stock | Scenario, Forecast | Maximum | ||||
Class of Stock [Line Items] | ||||
Preferred stock converted in to common stock (in shares) | 132.50 | |||
Number of common stock issued upon conversion (in shares) | 6,900,000 |
Share Repurchases (Details)
Share Repurchases (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | May 25, 2017 | |
Text Block [Abstract] | ||
Number of shares authorized for repurchase under the share repurchase program | 200,000,000 | |
Shares repurchased | 1,100,000 | |
Value of shares repurchased | $ 75,270 | |
Treasury stock acquired, average cost per share (in dollars per share) | $ 71.67 |
Subsequent Events (Details)
Subsequent Events (Details) | 1 Months Ended | 3 Months Ended | |||||||||
Mar. 31, 2018USD ($) | Jul. 01, 2018USD ($) | Apr. 01, 2018USD ($) | Apr. 02, 2017USD ($) | Apr. 05, 2018EUR (€) | Apr. 05, 2018USD ($) | Apr. 01, 2018EUR (€) | Apr. 01, 2018USD ($) | Mar. 31, 2018EUR (€) | Mar. 31, 2018USD ($) | Mar. 27, 2018$ / shares | |
Subsequent Event [Line Items] | |||||||||||
Redemption price per share (in dollars per share) | $ / shares | $ 0.01 | ||||||||||
Redemption amount | $ 400,000 | ||||||||||
Loss on debt extinguishment | $ 19,960,000 | $ 0 | |||||||||
5.50% Senior subordinated notes due 2023 | Senior Subordinated Notes | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Debt repurchased | € | € 143,100,000 | ||||||||||
Aggregate principal amount outstanding of senior subordinated notes | € | € 200,000,000 | ||||||||||
Loss on debt extinguishment | $ (6,200,000) | ||||||||||
5.50% Senior subordinated notes due 2023 | Senior Subordinated Notes | Subsequent Event | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Debt repurchased | € | € 56,900,000 | ||||||||||
5.25% Senior subordinated notes due 2024 | Senior Subordinated Notes | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Debt repurchased | $ 188,700,000 | ||||||||||
Aggregate principal amount outstanding of senior subordinated notes | $ 200,000,000 | ||||||||||
Loss on debt extinguishment | $ (13,800,000) | ||||||||||
5.25% Senior subordinated notes due 2024 | Senior Subordinated Notes | Subsequent Event | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Debt repurchased | $ 11,300,000 | ||||||||||
Scenario, Forecast | Senior Subordinated Notes | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Loss on debt extinguishment | $ 3,000,000 |