Document and Entity Information
Document and Entity Information - USD ($) | 6 Months Ended | ||
Jun. 30, 2015 | Jul. 24, 2015 | Jun. 30, 2014 | |
Entity [Abstract] | |||
Entity Registrant Name | POOL CORP | ||
Entity Central Index Key | 945,841 | ||
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 | $ 2,378,059,318 | ||
Entity Common Stock, Shares Outstanding | 42,931,725 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | Q2 | ||
Document Type | 10-Q | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2015 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net sales | $ 851,855 | $ 848,240 | $ 1,302,285 | $ 1,254,584 |
Cost of sales | 603,595 | 601,264 | 929,224 | 893,508 |
Gross profit | 248,260 | 246,976 | 373,061 | 361,076 |
Selling and administrative expenses | 119,128 | 124,477 | 228,330 | 229,931 |
Operating income | 129,132 | 122,499 | 144,731 | 131,145 |
Interest expense, net | 1,900 | 1,894 | 3,895 | 3,827 |
Income before income taxes and equity earnings | 127,232 | 120,605 | 140,836 | 127,318 |
Provision for income taxes | 49,493 | 46,796 | 54,785 | 49,400 |
Equity earnings in unconsolidated investments | 70 | 54 | 191 | 133 |
Net income | 77,809 | 73,863 | 86,242 | 78,051 |
Add: net loss attributable to redeemable noncontrolling interest | 115 | 0 | 101 | 0 |
Net income attributable to Pool Corporation | $ 77,924 | $ 73,863 | $ 86,343 | $ 78,051 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 1.80 | $ 1.65 | $ 1.99 | $ 1.74 |
Diluted (in dollars per share) | $ 1.75 | $ 1.61 | $ 1.94 | $ 1.69 |
Weighted average shares outstanding: [Abstract] | ||||
Basic (in shares) | 43,322 | 44,769 | 43,461 | 44,972 |
Diluted (in shares) | 44,458 | 45,971 | 44,606 | 46,160 |
Cash dividends declared per common share | $ 0.26 | $ 0.22 | $ 0.48 | $ 0.41 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net income | $ 77,809 | $ 73,863 | $ 86,242 | $ 78,051 |
Other comprehensive (loss) income: | ||||
Foreign currency translation adjustments | (982) | 392 | (5,690) | (455) |
Change in unrealized gains and losses on interest rate swaps, net of tax | 182 | (334) | (746) | (218) |
Total other comprehensive (loss) income | (800) | 58 | (6,436) | (673) |
Comprehensive income | 77,009 | 73,921 | 79,806 | 77,378 |
Add: comprehensive loss attributable to noncontrolling interest | 145 | 0 | 347 | 0 |
Comprehensive income attributable to Pool Corporation | $ 77,154 | $ 73,921 | $ 80,153 | $ 77,378 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parenthetical) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Other comprehensive (loss) income : | ||||
Tax effect of change in unrealized gains and losses on interest rate swaps | $ (116) | $ 213 | $ 447 | $ 139 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Current assets: | |||
Cash and cash equivalents | $ 38,944 | $ 14,830 | $ 27,563 |
Receivables, net | 93,709 | 51,014 | 97,527 |
Receivables pledged under receivables facility | 224,789 | 89,631 | 208,973 |
Product inventories, net | 473,362 | 466,962 | 451,507 |
Prepaid expenses and other current assets | 11,226 | 11,659 | 10,055 |
Deferred income taxes | 3,104 | 3,117 | 5,416 |
Total current assets | 845,134 | 637,213 | 801,041 |
Property and equipment, net | 65,151 | 56,475 | 57,275 |
Goodwill | 172,815 | 173,924 | 173,800 |
Other intangible assets, net | 11,643 | 11,995 | 10,725 |
Equity interest investments | 1,328 | 1,244 | 1,263 |
Other assets, net | 15,511 | 12,086 | 11,344 |
Total assets | 1,111,582 | 892,937 | 1,055,448 |
Current liabilities: | |||
Accounts payable | 236,868 | 236,294 | 233,549 |
Accrued expenses and other current liabilities | 80,480 | 54,085 | 89,200 |
Short-term borrowings, current portion of long-term debt and other long-term liabilities | 3,430 | 1,529 | 0 |
Total current liabilities | 320,778 | 291,908 | 322,749 |
Deferred income taxes | 23,642 | 23,504 | 19,979 |
Long-term debt | 491,820 | 319,309 | 430,971 |
Other long-term liabilities | 13,837 | 10,751 | 10,432 |
Total liabilities | 850,077 | 645,472 | 784,131 |
Redeemable noncontrolling interest | 2,766 | 3,113 | 0 |
Stockholders' equity: | |||
Common stock | 43 | 44 | 44 |
Additional paid-in capital | 356,410 | 338,620 | 325,415 |
Retained deficit | (87,862) | (90,650) | (56,381) |
Accumulated other comprehensive (loss) income | (9,852) | (3,662) | 2,239 |
Total stockholders' equity | 258,739 | 244,352 | 271,317 |
Total liabilities, redeemable noncontrolling interest and stockholders' equity | $ 1,111,582 | $ 892,937 | $ 1,055,448 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (Unaudited) - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 42,930,905 | 43,511,093 | 44,133,304 |
Common stock, outstanding (in shares) | 42,930,905 | 43,511,093 | 44,133,304 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Operating activities | ||
Net income | $ 86,242 | $ 78,051 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation | 7,687 | 7,021 |
Amortization | 532 | 696 |
Share-based compensation | 4,850 | 4,657 |
Excess tax benefits from share-based compensation | (4,568) | (3,920) |
Equity earnings in unconsolidated investments | (191) | (133) |
Other | 1,339 | 2,982 |
Changes in operating assets and liabilities, net of effects of acquisitions: | ||
Receivables | (177,193) | (180,075) |
Product inventories | (7,849) | (21,936) |
Prepaid expenses and other assets | 4 | (1,350) |
Accounts payable | 487 | 18,065 |
Accrued expenses and other current liabilities | 32,014 | 45,054 |
Net cash used in operating activities | (56,646) | (50,888) |
Investing activities | ||
Acquisition of businesses, net of cash acquired | (479) | (4,612) |
Purchase of property and equipment, net of sale proceeds | (16,200) | (11,921) |
Payments to fund credit agreement | (5,350) | 0 |
Collections from credit agreement | 3,407 | 0 |
Other investments, net | 59 | 96 |
Net cash used in investing activities | (18,563) | (16,437) |
Financing activities | ||
Proceeds from revolving line of credit | 526,116 | 457,218 |
Payments on revolving line of credit | (466,005) | (380,665) |
Proceeds from asset-backed financing | 128,400 | 121,600 |
Payments on asset-backed financing | (16,000) | (13,600) |
Proceeds from short-term borrowings, long-term debt and other long-term liabilities | 4,110 | 0 |
Payments on short-term borrowings, long-term debt and other long term liabilities | (2,209) | 0 |
Excess tax benefits from share-based compensation | 4,568 | 3,920 |
Proceeds from stock issued under share-based compensation plans | 8,372 | 6,335 |
Payments of cash dividends | (20,855) | (18,410) |
Purchases of treasury stock | (62,701) | (88,745) |
Net cash provided by financing activities | 103,796 | 87,653 |
Effect of exchange rate changes on cash and cash equivalents | (4,473) | (771) |
Change in cash and cash equivalents | 24,114 | 19,557 |
Cash and cash equivalents at beginning of period | 14,830 | 8,006 |
Cash and cash equivalents at end of period | $ 38,944 | $ 27,563 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
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. On July 31, 2014, we completed the purchase of a 60% interest in Pool Systems Pty. Ltd. (PSL), an Australian company. We accounted for this acquisition using the acquisition method of accounting. The purchase constitutes a controlling interest in the acquired company, which requires us to consolidate PSL’s financial position and results of operations from the date of acquisition. The Consolidated Financial Statements include all normal and recurring adjustments that are necessary for a fair presentation of our financial position and operating results. All significant intercompany accounts and intercompany transactions have been eliminated. A description of our significant accounting policies is included in our 2014 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 and six month periods ended June 30, 2015 are not necessarily indicative of the expected results for our fiscal year ending December 31, 2015 . Reclassifications On our Condensed Consolidated Statements of Cash Flows, for comparative purposes, we reclassified certain amounts in 2014 to conform to our 2015 presentation. Within Net cash used in operating activities, we now include the amount of our provision for deferred income taxes as opposed to the change in deferred income taxes within the Other line item. This change resulted in a reclassification of amounts between the Other line item and the Accrued expenses and other current liabilities line item. This reclassification had no impact on our Net cash used in operating activities or total cash flows for any period presented. Variable Interest Entity In February 2015, we entered into a five-year credit agreement with a swimming pool retailer. Under this agreement and the related revolving note, we are the primary lender of operating funds for this entity. The total lending commitment under the credit agreement is $8.5 million , of which $3.2 million was outstanding as of June 30, 2015 . Amounts outstanding under the credit agreement are recorded within Other assets, net on our Consolidated Balance Sheets and are collateralized by essentially all of the assets of the business. We have a variable interest in this entity; however, we have no decision-making authority over its activities through voting or other rights. Additionally, we have no obligation to absorb any of its losses, nor do we have the right to receive any residual returns, should either occur. We are not considered the primary beneficiary of this variable interest entity, and therefore we are not required to consolidate this entity’s financial statements. Retained Deficit We account for the retirement of treasury shares as a reduction of retained earnings (deficit). As of June 30, 2015 , 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 $878.4 million and cumulative dividends of $295.7 million . |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 2 – Earnings Per Share We calculate basic earnings per share (EPS) by dividing Net income attributable to Pool Corporation 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 the 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 Six Months Ended June 30, June 30, 2015 2014 2015 2014 Net income $ 77,809 $ 73,863 $ 86,242 $ 78,051 Add: net loss attributable to noncontrolling interest 115 — 101 — Net income attributable to Pool Corporation $ 77,924 $ 73,863 $ 86,343 $ 78,051 Weighted average shares outstanding: Basic 43,322 44,769 43,461 44,972 Effect of dilutive securities: Stock options and employee stock purchase plan 1,136 1,202 1,145 1,188 Diluted 44,458 45,971 44,606 46,160 Earnings per share: Basic $ 1.80 $ 1.65 $ 1.99 $ 1.74 Diluted $ 1.75 $ 1.61 $ 1.94 $ 1.69 Anti-dilutive stock options excluded from diluted earnings per share computations 176 — 176 169 |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | Note 3 – Acquisitions In April 2015, we acquired certain distribution assets from Poolwerx Development LLC and have opened a satellite sales center location serving South Mesa, Arizona. We have completed our acquisition accounting for this acquisition. This acquisition did not have a material impact on our financial position or results of operations. In December 2014, we acquired certain distribution assets of St. Louis Hardscape Material & Supply, LLC, a hardscape and landscaping materials supplier with one location in St. Louis, Missouri. Because this acquisition was completed on December 31, 2014, we have included the results of this acquired company beginning January 1, 2015. We completed our preliminary acquisition accounting for this acquisition, subject to adjustments in accordance with the terms of the purchase agreements during the one year measurement period. This acquisition did not have a material impact on our financial position or results of operations. 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. In July 2014, we purchased a 60% controlling interest in PSL, a distributor of swimming pool and spa equipment, accessories and leisure products, with one sales center located in Brisbane, Australia. As part of this transaction, PSL acquired Niagara Pool Supplies (Niagara), a distributor of pool products, with two sales centers in New South Wales, Australia. 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 Int
Fair Value Measurements and Interest Rate Swaps | 6 Months Ended |
Jun. 30, 2015 | |
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 and contingent consideration related to our PSL acquisition. The three levels of the fair value hierarchy under the accounting guidance are described below: Level 1 Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets. Level 2 Inputs to the valuation methodology include: • quoted prices for similar assets or liabilities in active markets; • quoted prices for identical or similar assets or liabilities in inactive markets; • inputs other than quoted prices that are observable for the asset or liability; or • inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Interest Rate Swaps For determining the fair value of 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 Amount (in millions) Fixed Interest Rate Interest rate swap 1 November 21, 2011 $25.0 1.185% Interest rate swap 2 November 21, 2011 $25.0 1.185% Interest rate swap 3 December 21, 2011 $50.0 1.100% Interest rate swap 4 January 17, 2012 $25.0 1.050% Interest rate swap 5 January 19, 2012 $25.0 0.990% In May 2014, we entered into four forward-starting interest rate swap contracts to reduce our exposure to future fluctuations in interest rates on our Credit Facility. These swaps will convert the variable interest rate to a fixed interest rate on borrowings under the Credit Facility. Each of these forward‑starting swap contracts becomes effective on October 19, 2016 and terminates on September 20, 2018. The following table provides additional details related to each of these swap contracts: Derivative Inception Date Notional Amount (in millions) Fixed Interest Rate Forward-starting interest rate swap 1 May 8, 2014 $25.0 2.520% Forward-starting interest rate swap 2 May 14, 2014 $50.0 2.450% Forward-starting interest rate swap 3 May 19, 2014 $50.0 2.339% Forward-starting interest rate swap 4 May 28, 2014 $25.0 2.256% 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. For our five interest rate swap contracts currently in effect, a portion of the change in the estimated fair value 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 six months of 2015 nor 2014 . The table below presents the estimated fair value of our interest rate swap contracts and our forward-starting interest rate swap contracts (in thousands): Fair Value at June 30, Level 2 2015 2014 Unrealized gains on interest rate swaps $ — $ 19 Unrealized losses on interest rate swaps (3,430 ) (2,086 ) 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. Contingent Consideration As of June 30, 2015 , we no longer have a contingent consideration liability recorded for the PSL acquisition. As of March 31, 2015, our Consolidated Balance Sheets reflected $0.2 million in Accrued expenses and other current liabilities for our estimate of a potential future payout for the PSL acquisition. In determining this estimate, we applied an income approach using a probability-weighted model of possible outcomes based on our estimates of fiscal 2015 earnings for PSL (Level 3 inputs as defined in the accounting guidance). Based on PSL’s preliminary earnings for fiscal 2015, we determined that a payout would no longer be required. We recognized this adjustment to the fair value of contingent consideration in earnings during the second quarter of 2015. Other The carrying values of cash, receivables, accounts payable and accrued liabilities approximate fair value due to the short maturity of those instruments. The carrying value of the note receivable with our variable interest entity and the carrying value of long-term debt approximate fair value. Our determination of the estimated fair values of these long-term instruments reflects a discounted cash flow model using our estimates, including assumptions related to borrowing rates and collectibility (Level 3 inputs as defined in the accounting guidance). |
Debt
Debt | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Note 5 – Debt The table below presents the components of our debt at June 30, 2015 and June 30, 2014 (in thousands): June 30, 2015 2014 Variable rate debt Short-term borrowings $ 3,430 $ — Long-term debt Revolving Credit Facility 311,820 270,971 Receivables Securitization Facility 180,000 160,000 Total debt $ 495,250 $ 430,971 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. Certain of our foreign subsidiaries entered into a cash pooling arrangement with a financial institution for cash management purposes. This arrangement allows the participating subsidiaries to withdraw cash from the financial institution to the extent that aggregate cash deposits held by these subsidiaries are available at the financial institution. To the extent the participating subsidiaries are in an overdraft position, such overdrafts are recorded as short-term borrowings under a committed cash overdraft facility. These borrowings bear interest at a variable rate based on 3-month EURIBOR, plus a fixed margin. We also pay a commitment fee on the borrowing capacity of €5 million . This fee is paid annually in advance. |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interest | 6 Months Ended |
Jun. 30, 2015 | |
Redeemable Noncontrolling Interest, Equity, Carrying Amount [Abstract] | |
Noncontrolling Interest Disclosure [Text Block] | Note 6 – Redeemable Noncontrolling Interest As discussed in Note 3 - Acquisitions, in July 2014, we purchased a controlling interest in PSL. Included in the transaction documents is a put/call option deed that grants us an option to purchase the shares held by the noncontrolling interest, and grants the holder of the noncontrolling interest an option to require us to purchase its shares in one or two transactions. The put/call option deed in this transaction is considered an equity contract and therefore a financial instrument under the accounting guidance. In applying the guidance for this transaction, we have determined that the financial instrument is embedded in the noncontrolling interest. As a public company, we are required to classify the noncontrolling interest and the embedded financial instrument as redeemable noncontrolling interest in a separate section of our Consolidated Balance Sheets, between liabilities and equity. At the end of each period, we record the portion of comprehensive income or loss attributable to the noncontrolling interest to Redeemable noncontrolling interest to determine the carrying amount. We are required to compare the carrying amount to our estimated redemption value at the end of each reporting period. The redemption value is based on a multiple of a PSL earnings measure for a specified time period. To the extent that the estimated redemption value exceeds the carrying amount, we would record an adjustment to Redeemable noncontrolling interest. We did not record such an adjustment at June 30, 2015 . The table below presents the changes in Redeemable noncontrolling interest (in thousands): June 30, 2015 Redeemable noncontrolling interest, beginning of period $ 3,113 Net loss attributable to noncontrolling interest (101 ) Other comprehensive loss attributable to noncontrolling interest (246 ) Redeemable noncontrolling interest, end of period $ 2,766 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 Six Months Ended June 30, June 30, 2015 2014 2015 2014 Net income $ 77,809 $ 73,863 $ 86,242 $ 78,051 Add: net loss attributable to noncontrolling interest 115 — 101 — Net income attributable to Pool Corporation $ 77,924 $ 73,863 $ 86,343 $ 78,051 Weighted average shares outstanding: Basic 43,322 44,769 43,461 44,972 Effect of dilutive securities: Stock options and employee stock purchase plan 1,136 1,202 1,145 1,188 Diluted 44,458 45,971 44,606 46,160 Earnings per share: Basic $ 1.80 $ 1.65 $ 1.99 $ 1.74 Diluted $ 1.75 $ 1.61 $ 1.94 $ 1.69 Anti-dilutive stock options excluded from diluted earnings per share computations 176 — 176 169 |
Fair Value Measurements and I15
Fair Value Measurements and Interest Rate Swaps (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Derivative [Line Items] | |
Estimated fair value of swap contracts | The table below presents the estimated fair value of our interest rate swap contracts and our forward-starting interest rate swap contracts (in thousands): Fair Value at June 30, Level 2 2015 2014 Unrealized gains on interest rate swaps $ — $ 19 Unrealized losses on interest rate swaps (3,430 ) (2,086 ) |
Interest Rate Swap Agreements[Member] | |
Derivative [Line Items] | |
Schedule of Interest Rate Derivatives | The following table provides additional details related to each of these swap contracts: Derivative Effective Date Notional Amount (in millions) Fixed Interest Rate Interest rate swap 1 November 21, 2011 $25.0 1.185% Interest rate swap 2 November 21, 2011 $25.0 1.185% Interest rate swap 3 December 21, 2011 $50.0 1.100% Interest rate swap 4 January 17, 2012 $25.0 1.050% Interest rate swap 5 January 19, 2012 $25.0 0.990% |
Forward-Starting Interest Rate Swap Agreements[Member] | |
Derivative [Line Items] | |
Schedule of Interest Rate Derivatives | The following table provides additional details related to each of these swap contracts: Derivative Inception Date Notional Amount (in millions) Fixed Interest Rate Forward-starting interest rate swap 1 May 8, 2014 $25.0 2.520% Forward-starting interest rate swap 2 May 14, 2014 $50.0 2.450% Forward-starting interest rate swap 3 May 19, 2014 $50.0 2.339% Forward-starting interest rate swap 4 May 28, 2014 $25.0 2.256% |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | The table below presents the components of our debt at June 30, 2015 and June 30, 2014 (in thousands): June 30, 2015 2014 Variable rate debt Short-term borrowings $ 3,430 $ — Long-term debt Revolving Credit Facility 311,820 270,971 Receivables Securitization Facility 180,000 160,000 Total debt $ 495,250 $ 430,971 |
Redeemable Noncontrolling Int17
Redeemable Noncontrolling Interest (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Redeemable Noncontrolling Interest, Equity, Carrying Amount [Abstract] | |
Redeemable Noncontrolling Interest [Table Text Block] | The table below presents the changes in Redeemable noncontrolling interest (in thousands): June 30, 2015 Redeemable noncontrolling interest, beginning of period $ 3,113 Net loss attributable to noncontrolling interest (101 ) Other comprehensive loss attributable to noncontrolling interest (246 ) Redeemable noncontrolling interest, end of period $ 2,766 |
Summary of Significant Accoun18
Summary of Significant Accounting Policies Controlling Interest Percentage (Details) | Jun. 30, 2015 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Controlling interest percentage by parent | 60.00% |
Summary of Significant Accoun19
Summary of Significant Accounting Policies Variable Interest Entity (Details) - Jun. 30, 2015 - USD ($) $ in Millions | Total |
Variable Interest Entity [Line Items] | |
Variable Interest Entity, Nonconsolidated, Credit Agreement Capacity | $ 8.5 |
Variable Interest Entity, Nonconsolidated, Note Receivable Outstanding | $ 3.2 |
Summary of Significant Accoun20
Summary of Significant Accounting Policies Retained Deficit (Details) $ in Millions | Jun. 30, 2015USD ($) |
Retained Earnings (Accumulated Deficit) [Abstract] | |
Cumulative share repurchases | $ 878.4 |
Cumulative dividends declared | $ 295.7 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 77,809 | $ 73,863 | $ 86,242 | $ 78,051 |
Add: net loss attributable to redeemable noncontrolling interest | 115 | 0 | 101 | 0 |
Net income attributable to Pool Corporation | $ 77,924 | $ 73,863 | $ 86,343 | $ 78,051 |
Weighted average shares outstanding: [Abstract] | ||||
Basic (in shares) | 43,322 | 44,769 | 43,461 | 44,972 |
Effect of dilutive securities: [Abstract] | ||||
Stock options and employee stock purchase plan (in shares) | 1,136 | 1,202 | 1,145 | 1,188 |
Diluted (in shares) | 44,458 | 45,971 | 44,606 | 46,160 |
Basic (in dollars per share) | $ 1.80 | $ 1.65 | $ 1.99 | $ 1.74 |
Diluted (in dollars per share) | $ 1.75 | $ 1.61 | $ 1.94 | $ 1.69 |
Anti-dilutive stock options excluded from diluted earnings per share computations (in shares) | 176 | 0 | 176 | 169 |
Acquisitions (Details)
Acquisitions (Details) | Jun. 30, 2015 |
Business Acquisition [Line Items] | |
Parent's controlling interest percentage in PSL | 60.00% |
Poolwerx Development LLC [Member] | |
Business Acquisition [Line Items] | |
Number of sales centers | 1 |
St. Louis Hardscape Material & Supply, LLC [Member] | |
Business Acquisition [Line Items] | |
Number of sales centers | 1 |
Pool Systems Pty. Ltd. [Member] | |
Business Acquisition [Line Items] | |
Number of sales centers | 3 |
DFW Stone Supply, LLC [Member] | |
Business Acquisition [Line Items] | |
Number of sales centers | 2 |
Atlantic Chemical and Aquatics Inc [Member] | |
Business Acquisition [Line Items] | |
Number of sales centers | 2 |
Interest Rate Swaps (Details)
Interest Rate Swaps (Details) - Jun. 30, 2015 - USD ($) $ in Millions | Total |
Interest Rate Swap 1 [Member] | |
Derivative [Line Items] | |
Interest rate swap agreement, effective date | Nov. 21, 2011 |
Interest rate swap agreement, notional amount | $ 25 |
Interest rate swap agreement, fixed interest rate | 1.185% |
Interest rate swap agreement, termination date | Oct. 19, 2016 |
Interest Rate Swap 2 [Member] | |
Derivative [Line Items] | |
Interest rate swap agreement, effective date | Nov. 21, 2011 |
Interest rate swap agreement, notional amount | $ 25 |
Interest rate swap agreement, fixed interest rate | 1.185% |
Interest rate swap agreement, termination date | Oct. 19, 2016 |
Interest Rate Swap 3 [Member] | |
Derivative [Line Items] | |
Interest rate swap agreement, effective date | Dec. 21, 2011 |
Interest rate swap agreement, notional amount | $ 50 |
Interest rate swap agreement, fixed interest rate | 1.10% |
Interest rate swap agreement, termination date | Oct. 19, 2016 |
Interest Rate Swap 4 [Member] | |
Derivative [Line Items] | |
Interest rate swap agreement, effective date | Jan. 17, 2012 |
Interest rate swap agreement, notional amount | $ 25 |
Interest rate swap agreement, fixed interest rate | 1.05% |
Interest rate swap agreement, termination date | Oct. 19, 2016 |
Interest Rate Swap 5 [Member] | |
Derivative [Line Items] | |
Interest rate swap agreement, effective date | Jan. 19, 2012 |
Interest rate swap agreement, notional amount | $ 25 |
Interest rate swap agreement, fixed interest rate | 0.99% |
Interest rate swap agreement, termination date | Oct. 19, 2016 |
Interest Rate Swaps (Details 2)
Interest Rate Swaps (Details 2) - Jun. 30, 2015 - USD ($) $ in Millions | Total |
Forward-starting Interest Rate Swap 1 [Member] | |
Derivative [Line Items] | |
Forward-starting interest rate swap agreement, inception date | May 8, 2014 |
Forward-starting interest rate swap agreement, effective date | Oct. 19, 2016 |
Forward-starting interest rate swap agreement, notional amount | $ 25 |
Forward-starting interest rate swap agreement, fixed interest rate | 2.52% |
Forward-starting interest rate swap agreement, termination date | Sep. 20, 2018 |
Forward-starting Interest Rate Swap 2 [Member] | |
Derivative [Line Items] | |
Forward-starting interest rate swap agreement, inception date | May 14, 2014 |
Forward-starting interest rate swap agreement, effective date | Oct. 19, 2016 |
Forward-starting interest rate swap agreement, notional amount | $ 50 |
Forward-starting interest rate swap agreement, fixed interest rate | 2.45% |
Forward-starting interest rate swap agreement, termination date | Sep. 20, 2018 |
Forward-starting Interest Rate Swap 3 [Member] | |
Derivative [Line Items] | |
Forward-starting interest rate swap agreement, inception date | May 19, 2014 |
Forward-starting interest rate swap agreement, effective date | Oct. 19, 2016 |
Forward-starting interest rate swap agreement, notional amount | $ 50 |
Forward-starting interest rate swap agreement, fixed interest rate | 2.339% |
Forward-starting interest rate swap agreement, termination date | Sep. 20, 2018 |
Forward-starting Interest Rate Swap 4 [Member] | |
Derivative [Line Items] | |
Forward-starting interest rate swap agreement, inception date | May 28, 2014 |
Forward-starting interest rate swap agreement, effective date | Oct. 19, 2016 |
Forward-starting interest rate swap agreement, notional amount | $ 25 |
Forward-starting interest rate swap agreement, fixed interest rate | 2.256% |
Forward-starting interest rate swap agreement, termination date | Sep. 20, 2018 |
Fair Value Measurements (Detail
Fair Value Measurements (Details 3) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Unrealized gains on interest rate swaps | $ 0 | $ 19 |
Accrued Expenses and Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Unrealized losses on interest rate swaps | $ (3,430) | $ (2,086) |
Fair Value Measurements (Deta26
Fair Value Measurements (Details 4) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Contingent consideration liability- PSL | $ 0 | $ 200 |
Debt (Details)
Debt (Details) $ in Thousands, € in Millions | Jun. 30, 2015EUR (€) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) |
Debt Instrument [Line Items] | |||
Borrowing Capacity, Bank Overdraft Facility (in Euros) | € | € 5 | ||
Short-term borrowings | $ 3,430 | $ 0 | |
Long-term debt [Abstract] | |||
Total debt | 495,250 | 430,971 | |
Receivables Securitization Facility [Member] | |||
Long-term debt [Abstract] | |||
Receivables Securitization Facility | 180,000 | 160,000 | |
Unsecured Syndicated Senior Credit Facility [Member] | |||
Long-term debt [Abstract] | |||
Revolving Credit Facility | $ 311,820 | $ 270,971 |
Redeemable Noncontrolling Int28
Redeemable Noncontrolling Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Redeemable Noncontrolling Interest [Roll Forward] | ||||
Redeemable noncontrolling interest, beginning of period | $ 3,113 | |||
Net loss attributable to redeemable noncontrolling interest | $ (115) | $ 0 | (101) | $ 0 |
Other comprehensive loss attributable to redeemable noncontrolling interest | (246) | |||
Redeemable noncontrolling interest, end of period | $ 2,766 | $ 0 | $ 2,766 | $ 0 |