Pool (POOL) 10-Q 30 Apr 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	3 Months Ended
	Mar. 31, 2014	Apr. 25, 2014	Jun. 28, 2013
Entities [Table]	'	'	'
Entity Registrant Name	'POOL CORP	'	'
Entity Central Index Key	'0000945841	'	'
Current Fiscal Year End Date	'--12-31	'	'
Entity Well-known Seasoned Issuer	'Yes	'	'
Entity Voluntary Filers	'No	'	'
Entity Current Reporting Status	'Yes	'	'
Entity Filer Category	'Large Accelerated Filer	'	'
Entity Public Float	'	'	$2,335,282,998
Entity Common Stock, Shares Outstanding	'	45,115,105	'
Document Fiscal Year Focus	'2014	'	'
Document Fiscal Period Focus	'Q1	'	'
Document Type	'10-Q	'	'
Amendment Flag	'false	'	'
Document Period End Date	31-Mar-14	'	'

Consolidated_Statements_of_Inc

Consolidated Statements of Income (Unaudited) (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Income Statement [Abstract]	'	'
Net sales	$406,344	$370,362
Cost of sales	292,244	265,601
Gross profit	114,100	104,761
Selling and administrative expenses	105,454	97,829
Operating income	8,646	6,932
Interest expense, net	1,933	1,614
Income before income taxes and equity earnings	6,713	5,318
Provision for income taxes	2,604	1,896
Equity earnings in unconsolidated investments	79	18
Net income	$4,188	$3,440
Earnings per share:	'	'
Basic (in dollars per share)	$0.09	$0.07
Diluted (in dollars per share)	$0.09	$0.07
Weighted average shares outstanding: [Abstract]	'	'
Basic (in shares)	45,178	46,385
Diluted (in shares)	46,375	47,580
Cash dividends declared per common share	$0.19	$0.16

Consolidated_Statements_of_Com

Consolidated Statements of Comprehensive Income (Unaudited) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Statement of Comprehensive Income [Abstract]	'	'
Net income	$4,188	$3,440
Other comprehensive (loss) income:	'	'
Foreign currency translation adjustments	-847	927
Change in unrealized gains and losses on interest rate swaps, net of tax	116	210
Total other comprehensive (loss) income	-731	1,137
Comprehensive income	$3,457	$4,577

Consolidated_Statements_of_Com1

Consolidated Statements of Comprehensive Income (Parenthetical) (Unaudited) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Other comprehensive (loss) income:	'	'
Tax effect of change in unrealized gains and losses on interest rate swaps	($74)	($133)

Consolidated_Balance_Sheets_Un

Consolidated Balance Sheets (Unaudited) (USD $)	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013
In Thousands, unless otherwise specified
Current assets:	'	'	'
Cash and cash equivalents	$7,257	$8,006	$12,873
Receivables, net	47,694	45,138	188,294
Receivables pledged under receivables facility	163,413	80,149	0
Product inventories, net	527,304	429,197	494,321
Prepaid expenses and other current assets	9,944	9,802	13,029
Deferred income taxes	5,427	5,457	5,153
Total current assets	761,039	577,749	713,670
Property and equipment, net	55,212	52,328	48,755
Goodwill	173,554	171,974	169,983
Other intangible assets, net	10,991	10,196	10,793
Equity interest investments	1,272	1,243	1,179
Other assets, net	11,132	10,271	9,360
Total assets	1,013,200	823,761	953,740
Current liabilities:	'	'	'
Accounts payable	370,002	214,596	338,026
Accrued expenses and other current liabilities	28,069	49,301	30,413
Current portion of long-term debt and other long-term liabilities	4	9	21
Total current liabilities	398,075	263,906	368,460
Deferred income taxes	19,747	19,108	14,207
Long-term debt	324,226	246,418	278,542
Other long-term liabilities	9,474	8,147	7,549
Total liabilities	751,522	537,579	668,758
Stockholders' equity:	'	'	'
Common stock	45	45	46
Additional paid-in capital	319,278	310,503	286,380
Retained deficit	-59,826	-27,278	-2,446
Accumulated other comprehensive income	2,181	2,912	1,002
Total stockholders' equity	261,678	286,182	284,982
Total liabilities and stockholders' equity	$1,013,200	$823,761	$953,740

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (Unaudited) (USD $)	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013
Statement of Financial Position [Abstract]	'	'	'
Common stock, par value (in dollars per share)	$0.00	$0.00	$0.00
Common stock, authorized (in shares)	100,000,000	100,000,000	100,000,000
Common stock, shares issued (in shares)	45,123,118	45,378,785	46,518,040
Common stock, outstanding (in shares)	45,123,118	45,378,785	46,518,040

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Operating activities	'	'
Net income	$4,188	$3,440
Adjustments to reconcile net income to net cash used in operating activities:	'	'
Depreciation	3,434	3,073
Amortization	328	321
Share-based compensation	2,058	1,905
Excess tax benefits from share-based compensation	-1,487	-1,703
Equity earnings in unconsolidated investments	-79	-18
Other	335	-38
Changes in operating assets and liabilities, net of effects of acquisitions:	'	'
Receivables	-85,018	-74,283
Product inventories	-97,032	-94,786
Prepaid expenses and other assets	-1,197	-2,461
Accounts payable	154,675	137,896
Accrued expenses and other current liabilities	-17,550	-13,332
Net cash used in operating activities	-37,345	-39,986
Investing activities	'	'
Acquisition of businesses, net of cash acquired	-4,512	-325
Purchase of property and equipment, net of sale proceeds	-5,870	-4,882
Other investments, net	49	9
Net cash used in investing activities	-10,333	-5,198
Financing activities	'	'
Proceeds from revolving line of credit	184,988	149,760
Payments on revolving line of credit	-163,549	-102,100
Proceeds from asset-backed financing	66,569	0
Payments on asset-backed financing	-10,200	0
Payments on long-term debt and other long-term liabilities	0	-5
Excess tax benefits from share-based compensation	1,487	1,703
Proceeds from stock issued under share-based compensation plans	5,231	6,438
Payments of cash dividends	-8,569	-7,434
Purchases of treasury stock	-28,168	-3,829
Net cash provided by financing activities	47,789	44,533
Effect of exchange rate changes on cash and cash equivalents	-860	1,061
Change in cash and cash equivalents	-749	410
Cash and cash equivalents at beginning of period	8,006	12,463
Cash and cash equivalents at end of period	$7,257	$12,873

Summary_of_Significant_Account

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2014
Accounting Policies [Abstract]	'
Summary of Significant Accounting Policies	'
	Note 1 – Summary of Significant Accounting Policies
	Pool Corporation (the Company, which may be referred to as we, us or our) prepared the unaudited interim Consolidated Financial Statements following U.S. generally accepted accounting principles (GAAP) and the requirements of the Securities and Exchange Commission (SEC) for interim financial information. As permitted under those rules, we have condensed or omitted certain footnotes and other financial information required for complete financial statements.  The Consolidated Financial Statements include all normal and recurring adjustments that are necessary for a fair presentation of our financial position and operating results including the elimination of all significant intercompany accounts and transactions among our wholly owned subsidiaries.
	A description of our significant accounting policies is included in our 2013 Annual Report on Form 10-K. You should read the interim Consolidated Financial Statements in conjunction with the Consolidated Financial Statements and accompanying notes in our Annual Report.  The results for our three month period ended March 31, 2014 are not necessarily indicative of the expected results for our fiscal year ending December 31, 2014.
	Retained Deficit
	We account for the retirement of treasury share repurchases as a reduction of retained earnings (deficit).   As of March 31, 2014, the Retained deficit on our Consolidated Balance Sheets reflects cumulative net income, the cumulative impact of adjustments for changes in accounting pronouncements, treasury share retirements since the inception of our share repurchase programs of $707.4 million and cumulative dividends of $245.9 million.

Earnings_Per_Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2014
Earnings Per Share [Abstract]	'
Earnings Per Share	'
	Note 2 – Earnings Per Share
	We calculate basic earnings per share (EPS) by dividing net income by the weighted average number of common shares outstanding.  We include outstanding unvested restricted stock awards of our common stock in the basic weighted average share calculation.  Diluted EPS includes the dilutive effects of other share-based awards.  Stock options with exercise prices that are higher than the average market prices of our common stock for the periods presented are excluded from the diluted EPS calculation because their effect is anti-dilutive.
	The table below presents the computation of EPS, including the reconciliation of basic and diluted weighted average shares outstanding (in thousands, except EPS):
		Three Months Ended
		March 31,
		2014		2013
	Net income	$	4,188	$	3,440
	Weighted average shares outstanding:
	Basic	45,178		46,385
	Effect of dilutive securities:
	Stock options and employee stock purchase plan	1,197		1,195
	Diluted	46,375		47,580
	Earnings per share:
	Basic	$	0.09	$	0.07
	Diluted	$	0.09	$	0.07
	Anti-dilutive stock options excluded from diluted earnings per share computations	169		3

Acquisitions

Acquisitions	3 Months Ended
	Mar. 31, 2014
Business Combinations [Abstract]	'
Acquisitions	'
	Note 3 – Acquisitions
	In February 2014, we acquired certain distribution assets of Atlantic Chemical & Aquatics Inc., a regional swimming pool products distributor based in Nova Scotia with two sales center locations serving the Maritime Provinces of Canada. In March 2014, we acquired certain distribution assets of DFW Stone Supply, LLC, a distributor of natural stone and rock products and masonry supplies with two sales center locations in the Dallas, Texas metropolitan area.
	We completed our preliminary acquisition accounting for these acquisitions, subject to adjustments in accordance with the terms of the purchase agreements during the respective one year measurement periods.  These acquisitions did not have a material impact on our financial position or results of operations.
	In March 2013, we acquired certain distribution assets of Swimming Pool Supply Center, Inc., a local swimming pool products distributor with one sales center location in Los Angeles, California. This sales center operates as a satellite location to more efficiently serve our west Los Angeles customers. In May 2013, we acquired certain distribution assets of B. Shapiro Supply, LLC, a swimming pool and hardscape products distributor with one sales center location in Warminster, Pennsylvania.
	We completed our acquisition accounting for these acquisitions.  These acquisitions did not have a material impact on our financial position or results of operations.

Fair_Value_Measurements_and_In

Fair Value Measurements and Interest Rate Swaps	3 Months Ended
	Mar. 31, 2014
Fair Value Disclosures [Abstract]	'
Fair Value Measurements and Interest Rate Swaps	'
	Note 4 – Fair Value Measurements and Interest Rate Swaps
	Our assets and liabilities that are measured at fair value on a recurring basis include the unrealized gains or losses on our interest rate swap contracts.  We use significant other observable market data or assumptions (Level 2 inputs as defined in the accounting guidance) that we believe market participants would use in pricing similar assets or liabilities, including assumptions about counterparty risk.  Our fair value estimates reflect an income approach based on the terms of the interest rate swap contracts and inputs corroborated by observable market data including interest rate curves.
	We have five interest rate swap contracts in place to reduce our exposure to fluctuations in interest rates on our unsecured syndicated senior credit facility (the Credit Facility).  These swaps convert the variable interest rate to a fixed interest rate on borrowings under the Credit Facility.  Each of these swap contracts terminates on October 19, 2016.  The following table provides additional details related to each of these swap contracts:
	Derivative	Effective Date		Notional	Fixed
				Amount	Interest
				(in millions)	Rate
	Interest rate swap 1	November 21, 2011		$25.00	1.19%
	Interest rate swap 2	November 21, 2011		$25.00	1.19%
	Interest rate swap 3	December 21, 2011		$50.00	1.10%
	Interest rate swap 4	January 17, 2012		$25.00	1.05%
	Interest rate swap 5	January 19, 2012		$25.00	0.99%
	We recognize any differences between the variable interest rate payments and the fixed interest rate settlements from our swap counterparties as an adjustment to interest expense over the life of the swaps.  We have designated these swaps as cash flow hedges and we record the changes in the estimated fair value of the swaps to Accumulated other comprehensive income (loss) on our Consolidated Balance Sheets.  If our interest rate swaps became ineffective, we would immediately recognize the changes in the estimated fair value of our swaps in earnings.  Since inception, we have not recognized any gains or losses on these swaps through income and there has been no effect on income from hedge ineffectiveness.
	A portion of the change in the estimated fair value of our interest rate swap contracts between periods relates to future interest expense. Recognition of the change in fair value between periods attributable to accrued interest is reclassified from Accumulated other comprehensive income (loss) to Interest expense, net on the Consolidated Statements of Income. These amounts were not material in the first three months of 2014 and 2013.
	The table below presents the estimated fair value of our interest rate swap contracts (in thousands):
		Fair Value at
		March 31,
	Level 2	2014			2013
	Unrealized Losses on Interest Rate Swaps	$	(1,520	)	$	(3,061	)
	We include unrealized losses in Accrued expenses and other current liabilities and unrealized gains in Prepaid expenses and other current assets on the Consolidated Balance Sheets.
	Failure of our swap counterparties would result in the loss of any potential benefit to us under our swap contracts.  In this case, we would still be obligated to pay the variable interest payments underlying the Credit Facility.  Additionally, failure of our swap counterparties would not eliminate our obligation to continue to make payments under our existing swap contracts if we continue to be in a net pay position.
	The carrying values of cash, receivables, accounts payable and accrued liabilities approximate fair value due to the short maturity of those instruments and the carrying value of long-term debt approximates fair value.  Our determination of the estimated fair value of long-term debt reflects a discounted cash flow model using our estimates, primarily those related to assumptions for borrowing rates (Level 3 inputs as defined in the accounting guidance).

Debt

Debt	3 Months Ended
	Mar. 31, 2014
Debt [Abstract]	'
Debt Disclosure [Text Block]	'
	Note 5 – Long-Term Debt
	The table below presents the components of our long-term debt at March 31, 2014 and March 31, 2013 (in thousands):
		March 31,
		2014		2013
	Long-term debt, variable rate:
	Revolving Credit Facility	$	215,857	$	278,542
	Receivables Securitization Facility	108,369		—
	Total debt	$	324,226	$	278,542
	The Receivables Securitization Facility (the Receivables Facility) provides for the sale of certain of our receivables to a wholly owned subsidiary (the Securitization Subsidiary). The Securitization Subsidiary transfers variable undivided percentage interests in the receivables and related rights to certain third party financial institutions in exchange for cash proceeds, limited to the applicable funding capacities. Upon payment of the receivables by customers, rather than remitting to the financial institutions the amounts collected, we retain such collections as proceeds for the sale of new receivables until payments become due.
	We account for the sale of the receivable interests as a secured borrowing on our Consolidated Balance Sheets. The receivables subject to the agreement collateralize the cash proceeds received from the third party financial institutions. We classify the entire outstanding balance as Long-term debt on our Consolidated Balance Sheets as we intend to refinance the obligations on a long‑term basis. We present the receivables that collateralize the cash proceeds separately as Receivables pledged under receivables facility on our Consolidated Balance Sheets.

Earnings_Per_Share_Tables

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2014
Earnings Per Share [Abstract]	'
Computation of earnings per share and reconciliation of basic and diluted weighted average common shares outstanding	'
	The table below presents the computation of EPS, including the reconciliation of basic and diluted weighted average shares outstanding (in thousands, except EPS):
		Three Months Ended
		March 31,
		2014		2013
	Net income	$	4,188	$	3,440
	Weighted average shares outstanding:
	Basic	45,178		46,385
	Effect of dilutive securities:
	Stock options and employee stock purchase plan	1,197		1,195
	Diluted	46,375		47,580
	Earnings per share:
	Basic	$	0.09	$	0.07
	Diluted	$	0.09	$	0.07
	Anti-dilutive stock options excluded from diluted earnings per share computations	169		3

Fair_Value_Measurements_and_In1

Fair Value Measurements and Interest Rate Swaps (Tables)	3 Months Ended
	Mar. 31, 2014
Fair Value Disclosures [Abstract]	'
Schedule of Interest Rate Derivatives	'
	The following table provides additional details related to each of these swap contracts:
	Derivative	Effective Date		Notional	Fixed
				Amount	Interest
				(in millions)	Rate
	Interest rate swap 1	November 21, 2011		$25.00	1.19%
	Interest rate swap 2	November 21, 2011		$25.00	1.19%
	Interest rate swap 3	December 21, 2011		$50.00	1.10%
	Interest rate swap 4	January 17, 2012		$25.00	1.05%
	Interest rate swap 5	January 19, 2012		$25.00	0.99%
Estimated fair value of swap contracts	'
	The table below presents the estimated fair value of our interest rate swap contracts (in thousands):
		Fair Value at
		March 31,
	Level 2	2014			2013
	Unrealized Losses on Interest Rate Swaps	$	(1,520	)	$	(3,061	)

Debt_Tables

Debt (Tables)	3 Months Ended
	Mar. 31, 2014
Debt Disclosure [Abstract]	'
Schedule of Debt [Table Text Block]	'
	The table below presents the components of our long-term debt at March 31, 2014 and March 31, 2013 (in thousands):
		March 31,
		2014		2013
	Long-term debt, variable rate:
	Revolving Credit Facility	$	215,857	$	278,542
	Receivables Securitization Facility	108,369		—
	Total debt	$	324,226	$	278,542

Summary_of_Significant_Account1

Summary of Significant Accounting Policies Retained Deficit (Details) (USD $)	Mar. 31, 2014
In Millions, unless otherwise specified
Retained Earnings (Accumulated Deficit) [Abstract]	'
Cumulative share repurchases	$707.40
Cumulative dividends declared	$245.90

Earnings_Per_Share_Details

Earnings Per Share (Details) (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Earnings Per Share [Abstract]	'	'
Net income	$4,188	$3,440
Weighted average shares outstanding: [Abstract]	'	'
Basic (in shares)	45,178	46,385
Effect of dilutive securities: [Abstract]	'	'
Stock options and employee stock purchase plan (in shares)	1,197	1,195
Diluted (in shares)	46,375	47,580
Basic (in dollars per share)	$0.09	$0.07
Diluted (in dollars per share)	$0.09	$0.07
Anti-dilutive stock options excluded from diluted earnings per share computations (in shares)	169	3

Acquisitions_Details

Acquisitions (Details)	Mar. 31, 2014
DFW Stone Supply, LLC [Member]	'
Business Acquisition [Line Items]	'
Number of sales centers	2
Atlantic Chemical & Aquatics Inc. [Member]	'
Business Acquisition [Line Items]	'
Number of sales centers	2
B. Shapiro Supply, LLC [Member]	'
Business Acquisition [Line Items]	'
Number of sales centers	1
SPSC, Inc. [Member]	'
Business Acquisition [Line Items]	'
Number of sales centers	1

Fair_Value_Measurements_and_In2

Fair Value Measurements and Interest Rate Swaps (Details) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 31, 2014
Derivative [Line Items]	'
Interest rate swap agreements, termination date	19-Oct-16
Interest Rate Swap 1 [Member]	'
Derivative [Line Items]	'
Interest rate swap agreement, effective date	21-Nov-11
Interest rate swap agreement, notional amount	25
Interest rate swap agreement, fixed interest rate	1.19%
Interest Rate Swap 2 [Member]	'
Derivative [Line Items]	'
Interest rate swap agreement, effective date	21-Nov-11
Interest rate swap agreement, notional amount	25
Interest rate swap agreement, fixed interest rate	1.19%
Interest Rate Swap 3 [Member]	'
Derivative [Line Items]	'
Interest rate swap agreement, effective date	21-Dec-11
Interest rate swap agreement, notional amount	50
Interest rate swap agreement, fixed interest rate	1.10%
Interest Rate Swap 4 [Member]	'
Derivative [Line Items]	'
Interest rate swap agreement, effective date	17-Jan-12
Interest rate swap agreement, notional amount	25
Interest rate swap agreement, fixed interest rate	1.05%
Interest Rate Swap 5 [Member]	'
Derivative [Line Items]	'
Interest rate swap agreement, effective date	19-Jan-12
Interest rate swap agreement, notional amount	25
Interest rate swap agreement, fixed interest rate	0.99%

Fair_Value_Measurements_and_In3

Fair Value Measurements and Interest Rate Swaps (Details 2) (Accrued Expenses and Other Current Liabilities [Member], USD $)	Mar. 31, 2014	Mar. 31, 2013
In Thousands, unless otherwise specified
Accrued Expenses and Other Current Liabilities [Member]	'	'
Derivatives, Fair Value [Line Items]	'	'
Unrealized Losses on Interest Rate Swaps	($1,520)	($3,061)

Debt_Details

Debt (Details) (USD $)	Mar. 31, 2014	Mar. 31, 2013
In Thousands, unless otherwise specified
Long-term debt [Abstract]	'	'
Total debt	$324,226	$278,542
Receivables Securitization Facility [Member]	'	'
Long-term debt [Abstract]	'	'
Receivables Securitization Facility	108,369	0
Unsecured Syndicated Senior Credit Facility[Member]	'	'
Long-term debt [Abstract]	'	'
Revolving Credit Facility	$215,857	$278,542