Delaware | 36-3601505 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
PART I | FINANCIAL INFORMATION |
Item 1. | Financial Statements |
April 2, 2017 | December 31, 2016 | ||||||
(Unaudited) | |||||||
(In thousands) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 815,924 | $ | 848,116 | |||
Receivables, net | 381,704 | 388,059 | |||||
Inventories, net | 218,404 | 190,408 | |||||
Other current assets | 36,475 | 29,176 | |||||
Assets held for sale | 25,916 | 23,193 | |||||
Total current assets | 1,478,423 | 1,478,952 | |||||
Property, plant and equipment, less accumulated depreciation | 311,393 | 309,291 | |||||
Goodwill | 1,389,264 | 1,385,995 | |||||
Intangible assets, less accumulated amortization | 538,382 | 560,082 | |||||
Deferred income taxes | 34,445 | 33,706 | |||||
Other long-lived assets | 35,734 | 38,777 | |||||
$ | 3,787,641 | $ | 3,806,803 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 264,079 | $ | 258,203 | |||
Accrued liabilities | 255,970 | 310,340 | |||||
Current maturities of long-term debt | — | — | |||||
Liabilities held for sale | 1,661 | 1,736 | |||||
Total current liabilities | 521,710 | 570,279 | |||||
Long-term debt | 1,641,929 | 1,620,161 | |||||
Postretirement benefits | 105,877 | 104,050 | |||||
Deferred income taxes | 15,549 | 14,276 | |||||
Other long-term liabilities | 36,455 | 36,720 | |||||
Stockholders’ equity: | |||||||
Preferred stock | 1 | 1 | |||||
Common stock | 503 | 503 | |||||
Additional paid-in capital | 1,115,683 | 1,116,090 | |||||
Retained earnings | 798,642 | 783,812 | |||||
Accumulated other comprehensive loss | (48,478 | ) | (39,067 | ) | |||
Treasury stock | (401,071 | ) | (401,026 | ) | |||
Total Belden stockholders’ equity | 1,465,280 | 1,460,313 | |||||
Noncontrolling interest | 841 | 1,004 | |||||
Total stockholders’ equity | 1,466,121 | 1,461,317 | |||||
$ | 3,787,641 | $ | 3,806,803 |
Three Months Ended | |||||||
April 2, 2017 | April 3, 2016 | ||||||
(In thousands, except per share data) | |||||||
Revenues | $ | 551,381 | $ | 541,497 | |||
Cost of sales | (329,267 | ) | (316,462 | ) | |||
Gross profit | 222,114 | 225,035 | |||||
Selling, general and administrative expenses | (112,586 | ) | (122,406 | ) | |||
Research and development | (34,522 | ) | (36,133 | ) | |||
Amortization of intangibles | (23,669 | ) | (25,532 | ) | |||
Operating income | 51,337 | 40,964 | |||||
Interest expense, net | (23,506 | ) | (24,396 | ) | |||
Income before taxes | 27,831 | 16,568 | |||||
Income tax expense | (2,250 | ) | (210 | ) | |||
Net income | 25,581 | 16,358 | |||||
Less: Net loss attributable to noncontrolling interest | (106 | ) | (99 | ) | |||
Net income attributable to Belden | 25,687 | 16,457 | |||||
Less: Preferred stock dividends | 8,733 | — | |||||
Net income attributable to Belden common stockholders | $ | 16,954 | $ | 16,457 | |||
Weighted average number of common shares and equivalents: | |||||||
Basic | 42,216 | 42,008 | |||||
Diluted | 42,675 | 42,387 | |||||
Basic income per share attributable to Belden common stockholders | $ | 0.40 | $ | 0.39 | |||
Diluted income per share attributable to Belden common stockholders | $ | 0.40 | $ | 0.39 | |||
Comprehensive income attributable to Belden | $ | 16,276 | $ | 14,739 | |||
Common stock dividends declared per share | $ | 0.05 | $ | 0.05 |
Three Months Ended | |||||||
April 2, 2017 | April 3, 2016 | ||||||
(In thousands) | |||||||
Cash flows from operating activities: | |||||||
Net income | $ | 25,581 | $ | 16,358 | |||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | |||||||
Depreciation and amortization | 35,052 | 37,195 | |||||
Share-based compensation | 3,930 | 4,100 | |||||
Changes in operating assets and liabilities, net of the effects of currency exchange rate changes and acquired businesses: | |||||||
Receivables | 9,416 | 45,098 | |||||
Inventories | (27,245 | ) | (16,625 | ) | |||
Accounts payable | 3,400 | (17,187 | ) | ||||
Accrued liabilities | (53,733 | ) | (52,607 | ) | |||
Accrued taxes | (2,387 | ) | (6,328 | ) | |||
Other assets | (5,794 | ) | (1,226 | ) | |||
Other liabilities | (483 | ) | 3,834 | ||||
Net cash provided by (used for) operating activities | (12,263 | ) | 12,612 | ||||
Cash flows from investing activities: | |||||||
Capital expenditures | (10,399 | ) | (13,431 | ) | |||
Cash used to acquire businesses, net of cash acquired | — | (15,348 | ) | ||||
Proceeds from disposal of tangible assets | — | 10 | |||||
Net cash used for investing activities | (10,399 | ) | (28,769 | ) | |||
Cash flows from financing activities: | |||||||
Cash dividends paid | (10,842 | ) | (2,101 | ) | |||
Withholding tax payments for share-based payment awards, net of proceeds from the exercise of stock options | (4,382 | ) | (2,833 | ) | |||
Debt issuance costs paid | (4 | ) | — | ||||
Payments under borrowing arrangements | — | (50,625 | ) | ||||
Net cash used for financing activities | (15,228 | ) | (55,559 | ) | |||
Effect of foreign currency exchange rate changes on cash and cash equivalents | 5,698 | 1,229 | |||||
Decrease in cash and cash equivalents | (32,192 | ) | (70,487 | ) | |||
Cash and cash equivalents, beginning of period | 848,116 | 216,751 | |||||
Cash and cash equivalents, end of period | $ | 815,924 | $ | 146,264 |
Belden Inc. Stockholders | ||||||||||||||||||||||||||||||||||||||||
Mandatory Convertible | Additional | Accumulated Other | Non-controlling | |||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Paid-In | Retained | Treasury Stock | Comprehensive | |||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Earnings | Shares | Amount | Income (Loss) | Interest | Total | ||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2016 | 52 | $ | 1 | 50,335 | $ | 503 | $ | 1,116,090 | $ | 783,812 | (8,155 | ) | $ | (401,026 | ) | $ | (39,067 | ) | $ | 1,004 | $ | 1,461,317 | ||||||||||||||||||
Net income (loss) | — | — | — | — | — | 25,687 | — | — | — | (106 | ) | 25,581 | ||||||||||||||||||||||||||||
Foreign currency translation, net of $0.1 million tax | — | — | — | — | — | — | — | — | (9,779 | ) | (57 | ) | (9,836 | ) | ||||||||||||||||||||||||||
Adjustments to pension and postretirement liability, net of $0.2 million tax | — | — | — | — | — | — | — | — | 368 | — | 368 | |||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | (9,468 | ) | ||||||||||||||||||||||||||||||||||||||
Exercise of stock options, net of tax withholding forfeitures | — | — | — | — | (709 | ) | — | 15 | (1 | ) | — | — | (710 | ) | ||||||||||||||||||||||||||
Conversion of restricted stock units into common stock, net of tax withholding forfeitures | — | — | — | — | (3,628 | ) | — | 75 | (44 | ) | — | — | (3,672 | ) | ||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 3,930 | — | — | — | — | — | 3,930 | |||||||||||||||||||||||||||||
Preferred stock dividends | — | — | — | — | — | (8,733 | ) | — | — | — | — | (8,733 | ) | |||||||||||||||||||||||||||
Common stock dividends ($0.05 per share) | — | — | — | — | — | (2,124 | ) | — | — | — | — | (2,124 | ) | |||||||||||||||||||||||||||
Balance at April 2, 2017 | 52 | $ | 1 | 50,335 | $ | 503 | $ | 1,115,683 | $ | 798,642 | (8,065 | ) | $ | (401,071 | ) | $ | (48,478 | ) | $ | 841 | $ | 1,466,121 |
• | 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. |
• | 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. |
April 2, 2017 | December 31, 2016 | ||||||
(In thousands) | |||||||
Receivables, net | $ | 4,730 | $ | 4,551 | |||
Inventories, net | 3,523 | 2,848 | |||||
Other current assets | 1,051 | 1,131 | |||||
Property, plant, and equipment | 2,063 | 1,946 | |||||
Intangible assets | 4,448 | 4,405 | |||||
Goodwill | 5,477 | 5,477 | |||||
Other long-lived assets | 28,555 | 26,766 | |||||
Total assets of disposal group | 49,847 | 47,124 | |||||
Impairment of assets held for sale | (23,931 | ) | (23,931 | ) | |||
Total assets held for sale | $ | 25,916 | $ | 23,193 | |||
Accrued liabilities | $ | 1,288 | $ | 1,288 | |||
Postretirement benefits | 373 | 448 | |||||
Total liabilities held for sale | $ | 1,661 | $ | 1,736 |
Broadcast Solutions | Enterprise Solutions | Industrial Solutions | Network Solutions | Total Segments | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
As of and for the three months ended April 2, 2017 | ||||||||||||||||||||
Segment revenues | $ | 168,596 | $ | 145,682 | $ | 146,181 | $ | 90,922 | $ | 551,381 | ||||||||||
Affiliate revenues | 101 | 2,558 | 387 | 60 | 3,106 | |||||||||||||||
Segment EBITDA | 25,400 | 24,100 | 25,733 | 17,877 | 93,110 | |||||||||||||||
Depreciation expense | 3,949 | 2,599 | 3,206 | 1,629 | 11,383 | |||||||||||||||
Amortization expense | 10,015 | 424 | 642 | 12,588 | 23,669 | |||||||||||||||
Severance, restructuring, and acquisition integration costs | 408 | 4,873 | 1,121 | 198 | 6,600 | |||||||||||||||
Segment assets | 321,342 | 250,198 | 264,016 | 105,156 | 940,712 | |||||||||||||||
As of and for the three months ended April 3, 2016 | ||||||||||||||||||||
Segment revenues | $ | 171,272 | $ | 135,892 | $ | 141,091 | $ | 95,545 | $ | 543,800 | ||||||||||
Affiliate revenues | 424 | 1,699 | 182 | 28 | 2,333 | |||||||||||||||
Segment EBITDA | 23,267 | 23,736 | 22,987 | 20,076 | 90,066 | |||||||||||||||
Depreciation expense | 3,962 | 3,389 | 2,718 | 1,594 | 11,663 | |||||||||||||||
Amortization expense | 12,931 | 429 | 591 | 11,581 | 25,532 | |||||||||||||||
Severance, restructuring, and acquisition integration costs | 4,378 | 500 | 865 | 2,665 | 8,408 | |||||||||||||||
Purchase accounting effects of acquisitions | 195 | — | — | — | 195 | |||||||||||||||
Deferred gross profit adjustments | 614 | — | — | 1,689 | 2,303 | |||||||||||||||
Segment assets | 332,009 | 233,422 | 248,971 | 105,451 | 919,853 |
Three Months Ended | |||||||
April 2, 2017 | April 3, 2016 | ||||||
(In thousands) | |||||||
Total Segment Revenues | $ | 551,381 | $ | 543,800 | |||
Deferred revenue adjustments (1) | — | (2,303 | ) | ||||
Consolidated Revenues | $ | 551,381 | $ | 541,497 | |||
Total Segment EBITDA | $ | 93,110 | $ | 90,066 | |||
Amortization of intangibles | (23,669 | ) | (25,532 | ) | |||
Depreciation expense | (11,383 | ) | (11,663 | ) | |||
Severance, restructuring, and acquisition integration costs (2) | (6,600 | ) | (8,408 | ) | |||
Deferred gross profit adjustments (1) | — | (2,303 | ) | ||||
Purchase accounting effects related to acquisitions (3) | — | (195 | ) | ||||
Income (loss) from equity method investment | 1,007 | (170 | ) | ||||
Eliminations | (1,128 | ) | (831 | ) | |||
Consolidated operating income | 51,337 | 40,964 | |||||
Interest expense, net | (23,506 | ) | (24,396 | ) | |||
Consolidated income before taxes | $ | 27,831 | $ | 16,568 |
Three Months Ended | |||||||
April 2, 2017 | April 3, 2016 | ||||||
(In Thousands) | |||||||
Numerator: | |||||||
Net income | $ | 25,581 | $ | 16,358 | |||
Less: Net loss attributable to noncontrolling interest | (106 | ) | (99 | ) | |||
Less: Preferred stock dividends | 8,733 | — | |||||
Net income attributable to Belden common stockholders | $ | 16,954 | $ | 16,457 | |||
Denominator: | |||||||
Weighted average shares outstanding, basic | 42,216 | 42,008 | |||||
Effect of dilutive common stock equivalents | 459 | 379 | |||||
Weighted average shares outstanding, diluted | 42,675 | 42,387 |
April 2, 2017 | December 31, 2016 | ||||||
(In thousands) | |||||||
Raw materials | $ | 104,064 | $ | 90,019 | |||
Work-in-process | 30,220 | 25,166 | |||||
Finished goods | 108,253 | 99,784 | |||||
Gross inventories | 242,537 | 214,969 | |||||
Excess and obsolete reserves | (24,133 | ) | (24,561 | ) | |||
Net inventories | $ | 218,404 | $ | 190,408 |
Three Months Ended April 2, 2017 | Severance | Other Restructuring and Integration Costs | Total Costs | |||||||||
(In thousands) | ||||||||||||
Broadcast Solutions | $ | 49 | $ | 359 | $ | 408 | ||||||
Enterprise Solutions | 852 | 4,021 | 4,873 | |||||||||
Industrial Solutions | — | 1,121 | 1,121 | |||||||||
Network Solutions | — | 198 | 198 | |||||||||
Total | $ | 901 | $ | 5,699 | $ | 6,600 | ||||||
Three Months Ended April 3, 2016 | ||||||||||||
Broadcast Solutions | $ | (784 | ) | $ | 5,162 | $ | 4,378 | |||||
Enterprise Solutions | — | 500 | 500 | |||||||||
Industrial Solutions | 444 | 421 | 865 | |||||||||
Network Solutions | 1,882 | 783 | 2,665 | |||||||||
Total | $ | 1,542 | $ | 6,866 | $ | 8,408 |
April 2, 2017 | December 31, 2016 | ||||||
(In thousands) | |||||||
Revolving credit agreement due 2018 | $ | — | $ | — | |||
Senior subordinated notes: | |||||||
4.125% Senior subordinated notes due 2026 | 215,120 | 209,081 | |||||
5.25% Senior subordinated notes due 2024 | 200,000 | 200,000 | |||||
5.50% Senior subordinated notes due 2023 | 543,981 | 529,146 | |||||
5.50% Senior subordinated notes due 2022 | 700,000 | 700,000 | |||||
9.25% Senior subordinated notes due 2019 | 5,221 | 5,221 | |||||
Total senior subordinated notes | 1,664,322 | 1,643,448 | |||||
Less unamortized debt issuance costs | (22,393 | ) | (23,287 | ) | |||
Long-term debt | $ | 1,641,929 | $ | 1,620,161 |
• | 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 are lower than the 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 Obligations | Other Postretirement Obligations | |||||||||||||||
Three Months Ended | April 2, 2017 | April 3, 2016 | April 2, 2017 | April 3, 2016 | ||||||||||||
(In thousands) | ||||||||||||||||
Service cost | $ | 1,093 | $ | 1,409 | $ | 13 | $ | 13 | ||||||||
Interest cost | 1,695 | 2,394 | 327 | 368 | ||||||||||||
Expected return on plan assets | (2,361 | ) | (3,191 | ) | — | — | ||||||||||
Amortization of prior service credit | (11 | ) | (9 | ) | — | (11 | ) | |||||||||
Actuarial losses | 587 | 698 | 23 | 82 | ||||||||||||
Net periodic benefit cost | $ | 1,003 | $ | 1,301 | $ | 363 | $ | 452 |
Three Months Ended | |||||||
April 2, 2017 | April 3, 2016 | ||||||
(In thousands) | |||||||
Net income | $ | 25,581 | $ | 16,358 | |||
Foreign currency translation loss, net of $0.1 million and $1.6 million tax, respectively | (9,836 | ) | (2,187 | ) | |||
Adjustments to pension and postretirement liability, net of $0.2 million and $0.3 million tax, respectively | 368 | 467 | |||||
Total comprehensive income | 16,113 | 14,638 | |||||
Less: Comprehensive loss attributable to noncontrolling interest | (163 | ) | (101 | ) | |||
Comprehensive income attributable to Belden | $ | 16,276 | $ | 14,739 |
Foreign Currency Translation Component | Pension and Other Postretirement Benefit Plans | Accumulated Other Comprehensive Income (Loss) | |||||||||
(In thousands) | |||||||||||
Balance at December 31, 2016 | $ | (4,661 | ) | $ | (34,406 | ) | $ | (39,067 | ) | ||
Other comprehensive loss attributable to Belden before reclassifications | (9,779 | ) | — | (9,779 | ) | ||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | 368 | 368 | ||||||||
Net current period other comprehensive loss attributable to Belden | (9,779 | ) | 368 | (9,411 | ) | ||||||
Balance at April 2, 2017 | $ | (14,440 | ) | $ | (34,038 | ) | $ | (48,478 | ) |
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 | $ | 610 | (1) | ||
Prior service credit | (11 | ) | (1) | ||
Total before tax | 599 | ||||
Tax benefit | (231 | ) | |||
Total net of tax | $ | 368 |
• | We did not change any of our existing critical accounting policies from those listed in our 2016 Annual Report on Form 10-K; |
• | No existing accounting policies became critical accounting policies because of an increase in the materiality of associated transactions or changes in the circumstances to which associated judgments and estimates relate; and |
• | There were no significant changes in the manner in which critical accounting policies were applied or in which related judgments and estimates were developed, except for the change in the Tripwire trademark discussed above. |
Three Months Ended | ||||||||||
April 2, 2017 | April 3, 2016 | % Change | ||||||||
(In thousands, except percentages) | ||||||||||
Revenues | $ | 551,381 | $ | 541,497 | 1.8 | % | ||||
Gross profit | 222,114 | 225,035 | (1.3 | )% | ||||||
Selling, general and administrative expenses | (112,586 | ) | (122,406 | ) | (8.0 | )% | ||||
Research and development | (34,522 | ) | (36,133 | ) | (4.5 | )% | ||||
Amortization of intangibles | (23,669 | ) | (25,532 | ) | (7.3 | )% | ||||
Operating income | 51,337 | 40,964 | 25.3 | % | ||||||
Interest expense, net | (23,506 | ) | (24,396 | ) | (3.6 | )% | ||||
Income before taxes | 27,831 | 16,568 | 68.0 | % |
Three Months Ended | ||||||||||
April 2, 2017 | April 3, 2016 | % Change | ||||||||
(In thousands, except percentages) | ||||||||||
Income before taxes | $ | 27,831 | $ | 16,568 | 68.0 | % | ||||
Income tax expense | 2,250 | 210 | 971.4 | % | ||||||
Effective tax rate | 8.1 | % | 1.3 | % |
Three Months Ended | ||||||||||
April 2, 2017 | April 3, 2016 | % Change | ||||||||
(In thousands, except percentages) | ||||||||||
Adjusted Revenues | $ | 551,381 | $ | 543,800 | 1.4 | % | ||||
Adjusted EBITDA | 92,989 | 89,065 | 4.4 | % | ||||||
as a percent of adjusted revenues | 16.9 | % | 16.4 | % |
Three Months Ended | |||||||
April 2, 2017 | April 3, 2016 | ||||||
(In thousands, except percentages) | |||||||
GAAP revenues | $ | 551,381 | $ | 541,497 | |||
Deferred revenue adjustments (1) | — | 2,303 | |||||
Adjusted revenues | $ | 551,381 | $ | 543,800 | |||
GAAP net income attributable to Belden | $ | 25,687 | $ | 16,457 | |||
Interest expense, net | 23,506 | 24,396 | |||||
Income tax expense | 2,250 | 210 | |||||
Noncontrolling interest | (106 | ) | (99 | ) | |||
Amortization of intangible assets | 23,669 | 25,532 | |||||
Depreciation expense | 11,383 | 11,663 | |||||
Severance, restructuring, and acquisition integration costs (2) | 6,600 | 8,408 | |||||
Deferred gross profit adjustments (1) | — | 2,303 | |||||
Purchase accounting effects related to acquisitions (3) | — | 195 | |||||
Adjusted EBITDA | $ | 92,989 | $ | 89,065 | |||
GAAP net income margin | 4.7 | % | 3.0 | % | |||
Adjusted EBITDA margin | 16.9 | % | 16.4 | % |
Three Months Ended | ||||||||||
April 2, 2017 | April 3, 2016 | % Change | ||||||||
(In thousands, except percentages) | ||||||||||
Segment Revenues | $ | 168,596 | $ | 171,272 | (1.6 | )% | ||||
Segment EBITDA | 25,400 | 23,267 | 9.2 | % | ||||||
as a percent of segment revenues | 15.1 | % | 13.6 | % |
Three Months Ended | ||||||||||
April 2, 2017 | April 3, 2016 | % Change | ||||||||
(In thousands, except percentages) | ||||||||||
Segment Revenues | $ | 145,682 | $ | 135,892 | 7.2 | % | ||||
Segment EBITDA | 24,100 | 23,736 | 1.5 | % | ||||||
as a percent of segment revenues | 16.5 | % | 17.5 | % |
Three Months Ended | ||||||||||
April 2, 2017 | April 3, 2016 | % Change | ||||||||
(In thousands, except percentages) | ||||||||||
Segment Revenues | $ | 146,181 | $ | 141,091 | 3.6 | % | ||||
Segment EBITDA | 25,733 | 22,987 | 11.9 | % | ||||||
as a percent of segment revenues | 17.6 | % | 16.3 | % |
Three Months Ended | ||||||||||
April 2, 2017 | April 3, 2016 | % Change | ||||||||
(In thousands, except percentages) | ||||||||||
Segment Revenues | $ | 90,922 | $ | 95,545 | (4.8 | )% | ||||
Segment EBITDA | 17,877 | 20,076 | (11.0 | )% | ||||||
as a percent of segment revenues | 19.7 | % | 21.0 | % |
Three Months Ended | |||||||
April 2, 2017 | April 3, 2016 | ||||||
(In thousands) | |||||||
Net cash provided by (used for): | |||||||
Operating activities | $ | (12,263 | ) | $ | 12,612 | ||
Investing activities | (10,399 | ) | (28,769 | ) | |||
Financing activities | (15,228 | ) | (55,559 | ) | |||
Effects of currency exchange rate changes on cash and cash equivalents | 5,698 | 1,229 | |||||
Decrease in cash and cash equivalents | (32,192 | ) | (70,487 | ) | |||
Cash and cash equivalents, beginning of period | 848,116 | 216,751 | |||||
Cash and cash equivalents, end of period | $ | 815,924 | $ | 146,264 |
Principal Amount by Expected Maturity | Fair | ||||||||||||||
2017 | Thereafter | Total | Value | ||||||||||||
(In thousands, except interest rates) | |||||||||||||||
Fixed-rate senior subordinated notes due 2022 | $ | — | $ | 700,000 | $ | 700,000 | $ | 714,000 | |||||||
Average interest rate | 5.50 | % | |||||||||||||
Fixed-rate senior subordinated notes due 2023 | $ | — | $ | 543,981 | $ | 543,981 | $ | 564,131 | |||||||
Average interest rate | 5.50 | % | |||||||||||||
Fixed-rate senior subordinated notes due 2026 | $ | — | $ | 215,120 | $ | 215,120 | $ | 219,233 | |||||||
Average interest rate | 4.125 | % | |||||||||||||
Fixed-rate senior subordinated notes due 2024 | $ | — | $ | 200,000 | $ | 200,000 | $ | 199,500 | |||||||
Average interest rate | 5.25 | % | |||||||||||||
Fixed-rate senior subordinated notes due 2019 | $ | — | $ | 5,221 | $ | 5,221 | $ | 5,221 | |||||||
Average interest rate | 9.25 | % | |||||||||||||
Total | $ | 1,664,322 | $ | 1,702,085 |
Exhibit 31.1 | Certificate of the Chief Executive Officer pursuant to § 302 of the Sarbanes-Oxley Act of 2002. | |
Exhibit 31.2 | Certificate of the Chief Financial Officer pursuant to § 302 of the Sarbanes-Oxley Act of 2002. | |
Exhibit 32.1 | Certificate of the Chief Executive Officer pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002. | |
Exhibit 32.2 | Certificate of the Chief Financial Officer pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002. | |
Exhibit 101.INS | XBRL Instance Document | |
Exhibit 101.SCH | XBRL Taxonomy Extension Schema | |
Exhibit 101.CAL | XBRL Taxonomy Extension Calculation | |
Exhibit 101.DEF | XBRL Taxonomy Extension Definition | |
Exhibit 101.LAB | XBRL Taxonomy Extension Label | |
Exhibit 101.PRE | XBRL Taxonomy Extension Presentation |
BELDEN INC. | |||||
Date: | May 8, 2017 | By: | /s/ John S. Stroup | ||
John S. Stroup | |||||
President, Chief Executive Officer, and Chairman | |||||
Date: | May 8, 2017 | By: | /s/ Henk Derksen | ||
Henk Derksen | |||||
Senior Vice President, Finance, and Chief Financial Officer | |||||
Date: | May 8, 2017 | By: | /s/ Douglas R. Zink | ||
Douglas R. Zink | |||||
Vice President and Chief Accounting Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Belden Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of circumstances under which the statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report, based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ John S. Stroup |
John S. Stroup |
President, Chief Executive Officer, and Chairman |
1. | I have reviewed this quarterly report on Form 10-Q of Belden Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of circumstances under which the statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report, based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Henk Derksen |
Henk Derksen |
Senior Vice President, Finance, and Chief Financial Officer |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
Apr. 02, 2017 |
May 04, 2017 |
|
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Apr. 02, 2017 | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | BDC | |
Entity Registrant Name | BELDEN INC. | |
Entity Central Index Key | 0000913142 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 42,271,634 |
Condensed Consolidated Stockholders' Equity Statement (Unaudited) (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Apr. 02, 2017 |
Apr. 03, 2016 |
|
Statement of Stockholders' Equity [Abstract] | ||
Foreign currency translation, tax income (loss) | $ 0.1 | $ 1.6 |
Adjustments to pension and postretirement liability, tax expense | $ 0.2 | $ 0.3 |
Dividends declared per share (in usd per share) | $ 0.05 | $ 0.05 |
Summary of Significant Accounting Policies |
3 Months Ended | ||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2017 | |||||||||||||||||||||||||
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, 2016:
These Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Supplementary Data contained in our 2016 Annual Report on Form 10-K. Business Description We are a signal transmission solutions provider built around four global business platforms – Broadcast Solutions, Enterprise Solutions, Industrial Solutions, and Network 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 2, 2017, the 92nd day of our fiscal year 2017. Our fiscal second and third quarters each have 91 days. The three months ended April 3, 2016 included 94 days. Reclassifications We have made certain reclassifications to the 2016 Condensed Consolidated Financial Statements with no impact to reported net income in order to conform to the 2017 presentation. Operating Segments To leverage the Company's strengths in networking, IoT, and cybersecurity technologies, effective January 1, 2017, we formed a new segment called Network Solutions, which represents the combination of the prior Industrial IT Solutions and Network Security Solutions segments. The formation is a natural evolution in our organic and inorganic strategies for a range of industrial and non-industrial applications. We have revised the prior period segment information to conform to the change in the composition of these reportable segments. In connection with this change, we re-evaluated the useful life of the Tripwire trademark and concluded that an indefinite life is no longer appropriate. We have estimated a useful life of 10 years and will re-evaluate this estimate if and when our expected use of the Tripwire trademark changes. We began amortizing the Tripwire trademark in the first quarter of 2017, which resulted in amortization expense of $0.8 million for the quarter. 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:
As of and during the three months ended April 2, 2017 and April 3, 2016, 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 2). We did not have any transfers between Level 1 and Level 2 fair value measurements during the three months ended April 2, 2017 and April 3, 2016. 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. 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. As of April 2, 2017, we did not have any significant cash equivalents. 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 2, 2017, we were party to standby letters of credit, surety bonds, and bank guaranties totaling $8.1 million, $2.4 million, and $1.7 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, and that appeal remains pending. We have not recorded any amounts in our consolidated financial statements related to this matter due to the pendency of the appeal. Revenue Recognition We recognize revenue when all of the following circumstances are satisfied: (1) persuasive evidence of an arrangement exists, (2) price is fixed or determinable, (3) collectability is reasonably assured, and (4) delivery has occurred. Delivery occurs in the period in which the customer takes title and assumes the risks and rewards of ownership of the products specified in the customer’s purchase order or sales agreement. At times, we enter into arrangements that involve the delivery of multiple elements. For these arrangements, when the elements can be separated, the revenue is allocated to each deliverable based on that element’s relative selling price and recognized based on the period of delivery for each element. Generally, we determine relative selling price using vendor specific objective evidence (VSOE) of fair value. We record revenue net of estimated rebates, 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 have certain products subject to the accounting guidance on software revenue recognition. For such products, software license revenue is recognized when persuasive evidence of an arrangement exists, delivery of the product has occurred, the fee is fixed or determinable, collection is probable and VSOE of the fair value of undelivered elements exists. As substantially all of the software licenses are sold in multiple-element arrangements that include either support and maintenance or both support and maintenance and professional services, we use the residual method to determine the amount of software license revenue to be recognized. Under the residual method, consideration is allocated to undelivered elements based upon VSOE of the fair value of those elements, with the residual of the arrangement fee allocated to and recognized as software license revenue. We have established VSOE of the fair value of support and maintenance, subscription-based software licenses, and professional services. Software license revenue is generally recognized upon delivery of the software if all revenue recognition criteria are met. Revenue allocated to support services under our support and maintenance contracts is typically paid in advance and recognized ratably over the term of the service. Revenue allocated to subscription-based software and remote ongoing operational services is also paid in advance and recognized ratably over the term of the service. Revenue allocated to professional services, including remote implementation services, is recognized as the services are performed. Subsequent Events We have evaluated subsequent events after the balance sheet date through the financial statement issuance date for appropriate accounting and disclosure. Pending Adoption of Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which will replace 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 plan to adopt ASU 2014-09 on January 1, 2018, using the modified retrospective method of adoption. Although we have not yet completed our review of individual customer contracts, our overall, initial assessment indicates that the impact of adopting ASU 2014-09 on our consolidated financial statements will not be material. We do not expect significant changes in the timing or method of revenue recognition for any of our material revenue streams. Based on our initial assessment, we have not identified a need to significantly change any of our accounting policies or practices. Furthermore, we do not expect significant changes to our accounting systems or controls upon adoption of ASU 2014-09. We will continue our evaluation of ASU 2014-09, including new or emerging interpretations of the standard, through the date of adoption. 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 evaluating the effect that ASU 2016-02 will have on our consolidated financial statements and related disclosures. 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. The new standard will be effective for us January 1, 2018. Early adoption is permitted. We are evaluating the effect that ASU 2016-16 will have on our consolidated financial statements and related disclosures. 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 will be 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. The new standard will be effective for us January 1, 2018. Early adoption is permitted. We are evaluating the effect that ASU 2017-07 will have on our consolidated financial statements and related disclosures. |
Acquisitions |
3 Months Ended |
---|---|
Apr. 02, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions M2FX We acquired 100% of the shares of M2FX Limited (M2FX) on January 7, 2016 for a purchase price of $19.0 million. M2FX is a manufacturer of fiber optic cable and fiber protective solutions for broadband access and telecommunications networks. M2FX is located in the United Kingdom. The results of M2FX have been included in our Consolidated Financial Statements from January 7, 2016, and are reported within the Broadcast Solutions segment. The M2FX acquisition was not material to our financial position or results of operations. |
Assets Held for Sale |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets Held for Sale | Assets Held for Sale We classify assets and liabilities as held for sale (disposal group) when management, having the authority to approve the action, commits to a plan to sell the disposal group, the sale is probable within one year, and the disposal group is available for immediate sale in its present condition. We also consider whether an active program to locate a buyer has been initiated, whether the disposal group is marketed actively for sale at a price that is reasonable in relation to its current fair value, and whether actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. When we classify a disposal group as held for sale, we test for impairment. An impairment charge is recognized when the carrying value of the disposal group exceeds the estimated fair value, less costs to sell. We also cease depreciation and amortization for assets classified as held for sale. During the fourth quarter of 2016, we committed to a plan to sell our MCS business and Hirschmann JV and determined that we met all of the criteria to classify the assets and liabilities of these businesses as held for sale. The MCS business is part of the Industrial Solutions segment and the Hirschmann JV is an equity method investment that is not included in an operating segment. The MCS business operates in Germany and the United States, and the Hirschmann JV is an equity method investment located in China. During the fourth quarter of 2016, we reached an agreement in principal to sell this disposal group for a total sales price of $39 million. The carrying value of the disposal group exceeded the fair value less costs to sell, which we determined based on the expected sales price, by $23.9 million. Therefore, we recognized an impairment charge equal to this amount in the fourth quarter of 2016. During the first quarter of 2017, we signed a definitive sales agreement for a purchase price of $39 million, and we expect the sale to be completed in the second or third quarter of 2017. The following table provides the major classes of assets and liabilities classified as held for sale as of April 2, 2017 and December 31, 2016. In addition, the disposal group had $13.5 million and $15.7 million of accumulated other comprehensive losses at April 2, 2017 and December 31, 2016, respectively.
|
Operating Segments |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Segments | Operating Segments We are organized around four global business platforms: Broadcast Solutions, Enterprise Solutions, Industrial Solutions, and Network Solutions. Each of the global business platforms represents a reportable segment. To leverage the Company's strengths in networking, IoT, and cybersecurity technologies, effective January 1, 2017, we formed a new segment called Network Solutions, which represents the combination of the prior Industrial IT Solutions and Network Security Solutions segments. The formation of this new segment is a natural evolution in our organic and inorganic strategies for a range of industrial and non-industrial applications. We have revised 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. Beginning in 2017, sales of certain audio-visual cable that had previously been reported in our Broadcast Solutions segment will now be reported in our Enterprise Solutions segment. As the annual revenues associated with this product line are not material, we have not revised the prior period segment information. 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.
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.
(1) For the three months ended April 3, 2016, 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. For the three months ended April 2, 2017, the purchase accounting effect of recording deferred revenue for previous acquisitions was zero. (2) See Note 8, Severance, Restructuring, and Acquisition Integration Activities, for details. (3) For the three months ended April 3, 2016, we recognized cost of sales for the adjustment of acquired inventory to fair value related to the M2FX acquisition. |
Income per Share |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income per Share | Income per Share The following table presents the basis for the income per share computations:
For the three months ended April 2, 2017 and April 3, 2016, diluted weighted average shares outstanding do not include outstanding equity awards of 0.3 million and 0.9 million, respectively, because to do so would have been anti-dilutive. In addition, for the three months ended April 2, 2017 and April 3, 2016, diluted weighted average shares outstanding do not include outstanding equity awards of 0.2 million and 0.1 million, respectively, because the related performance conditions have not been satisfied. Furthermore, for the three months ended 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 |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories The major classes of inventories were as follows:
|
Long-Lived Assets |
3 Months Ended |
---|---|
Apr. 02, 2017 | |
Property, Plant and Equipment [Abstract] | |
Long-Lived Assets | Long-Lived Assets Depreciation and Amortization Expense We recognized depreciation expense of $11.4 million and $11.7 million in the three months ended April 2, 2017 and April 3, 2016, respectively. In connection with the segment change discussed in Note 4, we re-evaluated the useful life of the Tripwire trademark and concluded that an indefinite life is no longer appropriate. We have estimated a useful life of 10 years and will re-evaluate this estimate if and when our expected use of the Tripwire trademark changes. We began amortizing the Tripwire trademark in the first quarter of 2017, which resulted in amortization expense of $0.8 million for the quarter. We recognized amortization expense related to our intangible assets of $23.7 million and $25.5 million in the three months ended April 2, 2017 and April 3, 2016, respectively. |
Severance, Restructuring, and Acquisition Integration Activities |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Severance, Restructuring, and Acquisition Integration Activities | Severance, Restructuring, and Acquisition Integration Activities Industrial and Network Solutions Restructuring Program: 2015-2016 Both our Industrial Solutions and Network Solutions segments had been negatively impacted by a decline in sales volume in 2015. At such time, global demand for industrial products had been negatively impacted by the strengthened U.S. dollar and lower energy prices. As a result, our customers reduced their capital spending. In response to these industrial market conditions, we began to execute a restructuring program in the fourth fiscal quarter of 2015 to reduce our cost structure. We recognized approximately $3.5 million of severance and other restructuring costs for this program during the first quarter of 2016, most of which was in our Network Solutions segment. We did not incur any additional severance and other restructuring costs for this program during the first quarter of 2017. To date, we have incurred a total of $13.0 million in severance and other restructuring costs for this program. We expect the restructuring program to generate approximately $18 million of savings on an annualized basis, which we began to realize in the first fiscal quarter of 2016. Industrial Manufacturing Footprint Program: 2016 - 2017 In 2016, we began a program to consolidate our manufacturing footprint. The manufacturing consolidation is expected to be completed by the end of 2017. We recognized $5.7 million of severance and other restructuring costs for this program during the three months ended April 2, 2017. 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 $23.5 million in severance and other restructuring costs for this program. We expect to incur approximately$9 million of additional severance and other restructuring costs for this program in the remainder of 2017. We expect the program to generate approximately $10 million of savings on an annualized basis, beginning in the second half of 2017. Grass Valley Restructuring Program: 2015-2016 Our Broadcast Solutions segment’s Grass Valley brand was negatively impacted by a decline in global demand of broadcast technology infrastructure products beginning in 2015. Outside of the U.S., demand for these products was impacted by the relative price increase of products due to the strengthened U.S. dollar as well as the impact of weaker economic conditions which have resulted in lower capital spending. Within the U.S., demand for these products was impacted by deferred capital spending. We believe broadcast customers deferred their capital spending as they navigated through a number of important industry transitions and a changing media landscape. In response to these broadcast market conditions, we began to execute a restructuring program beginning in the third fiscal quarter of 2015 to reduce our cost structure. We recognized approximately $4.1 million of severance and other restructuring costs for this program during the first quarter of 2016. We did not incur any additional severance and other restructuring costs for this program during the first quarter of 2017. To date, we have incurred a total of $34.1 million in severance and other restructuring costs for this program. We expect the restructuring program to generate approximately $30 million of savings on an annualized basis, which we began to realize in the fourth fiscal quarter of 2015. The following table summarizes the costs by segment of the various programs described above:
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. Of the total severance, restructuring, and acquisition integration costs recognized in the three months ended April 3, 2016, $2.1 million, $6.0 million, and $0.3 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 integrating manufacturing operations, such as equipment transfers, costs to consolidate operating and support facilities, retention bonuses, relocation, travel, legal, and other costs. The majority of the other cash 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 2, 2017 or December 31, 2016. |
Long-Term Debt and Other Borrowing Arrangements |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
Revolving Credit Agreement due 2018 Our revolving credit agreement provides a $400 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, the Netherlands, and the UK. As of April 2, 2017, we had no borrowings outstanding on our revolver, and our available borrowing capacity was $269.4 million. The Revolver matures in 2018. 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 0.375%. In the event we borrow more than 90% of our borrowing base, we are subject to a fixed charge coverage ratio covenant. Senior Subordinated Notes 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 2, 2017 is $215.1 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 2024, 2023, 2022, and 2019 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 $200.0 million aggregate principal amount of 5.25% senior subordinated notes due 2024 (the 2024 Notes). 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 2026, 2023, 2022, and 2019 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 €500.0 million aggregate principal amount of 5.5% senior subordinated notes due 2023 (the 2023 Notes). The carrying value of the 2023 Notes as of April 2, 2017 is $544.0 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 2026, 2024, 2022, and 2019 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 $700.0 million aggregate principal amount of 5.5% senior subordinated notes due 2022 (the 2022 Notes). The 2022 Notes are guaranteed on a senior subordinated basis by certain of our subsidiaries. The 2022 Notes rank equal in right of payment with our senior subordinated notes due 2026, 2024, 2023, and 2019, 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 on March 1 and September 1 of each year. We have outstanding $5.2 million aggregate principal amount of our senior subordinated notes due 2019 (the 2019 Notes). The 2019 Notes have a coupon interest rate of 9.25% and an effective interest rate of 9.75%. The interest on the 2019 Notes is payable semiannually on June 15 and December 15. The 2019 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 2026, 2024, 2023, and 2022, and with any future senior subordinated debt, and are subordinated to all of our senior debt and the senior debt of our subsidiary guarantors, including our Revolver. Fair Value of Long-Term Debt The fair value of our senior subordinated notes as of April 2, 2017 was approximately $1,702.1 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 $1,664.3 million as of April 2, 2017. |
Net Investment Hedge |
3 Months Ended |
---|---|
Apr. 02, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Net Investment Hedge | Net Investment Hedge On October 10, 2016, we issued €200 million senior subordinated notes due 2026. The notes were issued by Belden Inc., a USD functional currency ledger. We have designated this foreign denominated debt 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 at April 2, 2017 was $6.9 million. |
Income Taxes |
3 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2017 | |||||||||
Income Tax Disclosure [Abstract] | |||||||||
Income Taxes | Income Taxes 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 income tax expense of $0.2 million for the three months ended April 3, 2016, representing an effective tax rate of 1.3%. The minimal tax expense for the quarter stems from the reduction of a deferred tax valuation allowance primarily associated with net operating loss carryforwards in a foreign jurisdiction. The results of an analysis completed in the three months ended April 3, 2016, indicate the net operating loss carryforward will become partially realizable. |
Pension and Other Postretirement Obligations |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [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:
|
Comprehensive Income and Accumulated Other Comprehensive Income (Loss) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
The accumulated balances related to each component of other comprehensive income (loss), net of tax, are as follows:
The following table summarizes the effects of reclassifications from accumulated other comprehensive income (loss) for the three months ended April 2, 2017:
(1) The amortization of these accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit costs (see Note 12). |
Preferred Stock |
3 Months Ended |
---|---|
Apr. 02, 2017 | |
Equity [Abstract] | |
Preferred Stock | Preferred Stock On July 26, 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. The net proceeds are for general corporate purposes. 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 the three months ended April 2, 2017, the Preferred Stock accrued $8.7 million of dividends. |
Subsequent Events |
3 Months Ended |
---|---|
Apr. 02, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On May 3, 2017, we entered into a definitive agreement to acquire Thinklogical Holdings, LLC (Thinklogical) for a purchase price of $160.0 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 transaction will be financed with cash on hand and is expected to close in the second quarter of 2017, subject to regulatory approvals and other closing conditions. |
Summary of Significant Accounting Policies (Policies) |
3 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2017 | |||||||||||||
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, 2016:
These Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Supplementary Data contained in our 2016 Annual Report on Form 10-K |
||||||||||||
Business Description | Business Description We are a signal transmission solutions provider built around four global business platforms – Broadcast Solutions, Enterprise Solutions, Industrial Solutions, and Network 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 2, 2017, the 92nd day of our fiscal year 2017. Our fiscal second and third quarters each have 91 days. The three months ended April 3, 2016 included 94 days. |
||||||||||||
Reclassifications | Reclassifications We have made certain reclassifications to the 2016 Condensed Consolidated Financial Statements with no impact to reported net income in order to conform to the 2017 presentation. |
||||||||||||
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:
As of and during the three months ended April 2, 2017 and April 3, 2016, 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 2) |
||||||||||||
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. 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. As of April 2, 2017, we did not have any significant cash equivalents. |
||||||||||||
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 when all of the following circumstances are satisfied: (1) persuasive evidence of an arrangement exists, (2) price is fixed or determinable, (3) collectability is reasonably assured, and (4) delivery has occurred. Delivery occurs in the period in which the customer takes title and assumes the risks and rewards of ownership of the products specified in the customer’s purchase order or sales agreement. At times, we enter into arrangements that involve the delivery of multiple elements. For these arrangements, when the elements can be separated, the revenue is allocated to each deliverable based on that element’s relative selling price and recognized based on the period of delivery for each element. Generally, we determine relative selling price using vendor specific objective evidence (VSOE) of fair value. We record revenue net of estimated rebates, 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 have certain products subject to the accounting guidance on software revenue recognition. For such products, software license revenue is recognized when persuasive evidence of an arrangement exists, delivery of the product has occurred, the fee is fixed or determinable, collection is probable and VSOE of the fair value of undelivered elements exists. As substantially all of the software licenses are sold in multiple-element arrangements that include either support and maintenance or both support and maintenance and professional services, we use the residual method to determine the amount of software license revenue to be recognized. Under the residual method, consideration is allocated to undelivered elements based upon VSOE of the fair value of those elements, with the residual of the arrangement fee allocated to and recognized as software license revenue. We have established VSOE of the fair value of support and maintenance, subscription-based software licenses, and professional services. Software license revenue is generally recognized upon delivery of the software if all revenue recognition criteria are met. Revenue allocated to support services under our support and maintenance contracts is typically paid in advance and recognized ratably over the term of the service. Revenue allocated to subscription-based software and remote ongoing operational services is also paid in advance and recognized ratably over the term of the service. Revenue allocated to professional services, including remote implementation services, is recognized as the services are performed. |
||||||||||||
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. |
||||||||||||
Pending Adoption of Recent Accounting Pronouncements | Pending Adoption of Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which will replace 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 plan to adopt ASU 2014-09 on January 1, 2018, using the modified retrospective method of adoption. Although we have not yet completed our review of individual customer contracts, our overall, initial assessment indicates that the impact of adopting ASU 2014-09 on our consolidated financial statements will not be material. We do not expect significant changes in the timing or method of revenue recognition for any of our material revenue streams. Based on our initial assessment, we have not identified a need to significantly change any of our accounting policies or practices. Furthermore, we do not expect significant changes to our accounting systems or controls upon adoption of ASU 2014-09. We will continue our evaluation of ASU 2014-09, including new or emerging interpretations of the standard, through the date of adoption. 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 evaluating the effect that ASU 2016-02 will have on our consolidated financial statements and related disclosures. 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. The new standard will be effective for us January 1, 2018. Early adoption is permitted. We are evaluating the effect that ASU 2016-16 will have on our consolidated financial statements and related disclosures. 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 will be 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. The new standard will be effective for us January 1, 2018. Early adoption is permitted. We are evaluating the effect that ASU 2017-07 will have on our consolidated financial statements and related disclosures. |
Assets Held for Sale (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Major Assets and Liabilities Classified as Held for Sale | The following table provides the major classes of assets and liabilities classified as held for sale as of April 2, 2017 and December 31, 2016. In addition, the disposal group had $13.5 million and $15.7 million of accumulated other comprehensive losses at April 2, 2017 and December 31, 2016, respectively.
|
Operating Segments (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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.
(1) For the three months ended April 3, 2016, 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. For the three months ended April 2, 2017, the purchase accounting effect of recording deferred revenue for previous acquisitions was zero. (2) See Note 8, Severance, Restructuring, and Acquisition Integration Activities, for details. (3) For the three months ended April 3, 2016, we recognized cost of sales for the adjustment of acquired inventory to fair value related to the M2FX acquisition. |
Income per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis for Income Per Share Computations | The following table presents the basis for the income per share computations:
|
Inventories (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Major Classes of Inventories | The major classes of inventories were as follows:
|
Severance, Restructuring, and Acquisition Integration Activities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
Long-Term Debt and Other Borrowing Arrangements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Values of Long-Term Debt and Other Borrowing Arrangements | The carrying values of our long-term debt were as follows:
|
Pension and Other Postretirement Obligations (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [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:
|
Comprehensive Income and Accumulated Other Comprehensive Income (Loss) (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Comprehensive Income | The following table summarizes total comprehensive income:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 2, 2017:
(1) The amortization of these accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit costs (see Note 12). |
Acquisitions - Additional Information (Detail) - M2FX Limited [Member] $ in Millions |
Jan. 07, 2016
USD ($)
|
---|---|
Business Acquisition [Line Items] | |
Percentage of outstanding shares acquired | 100.00% |
Acquisition price | $ 19.0 |
Operating Segments - Additional Information (Detail) |
3 Months Ended |
---|---|
Apr. 02, 2017
Segment
| |
Segment Reporting [Abstract] | |
Number of global business platforms | 4 |
Income Per Share - Basis for Income Per Share Computations (Detail) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Apr. 02, 2017 |
Apr. 03, 2016 |
|
Earnings Per Share [Abstract] | ||
Net income | $ 25,581 | $ 16,358 |
Less: Net loss attributable to noncontrolling interest | (106) | (99) |
Less: Preferred stock dividends | 8,733 | 0 |
Net income attributable to Belden common stockholders | $ 16,954 | $ 16,457 |
Weighted average shares outstanding, basic (in shares) | 42,216 | 42,008 |
Effect of dilutive common stock equivalents (in shares) | 459 | 379 |
Weighted average shares outstanding, diluted (in shares) | 42,675 | 42,387 |
Income Per Share - Additional Information (Detail) - shares shares in Millions |
3 Months Ended | |
---|---|---|
Apr. 02, 2017 |
Apr. 03, 2016 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive shares excluded from diluted weighted average shares outstanding | 0.3 | 0.9 |
Anti-dilutive shares excluded from diluted weighted average shares outstanding due to performance conditions not being met | 0.2 | 0.1 |
Convertible Preferred Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive shares excluded from diluted weighted average shares outstanding | 6.9 |
Inventories - Major Classes of Inventories (Detail) - USD ($) $ in Thousands |
Apr. 02, 2017 |
Dec. 31, 2016 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 104,064 | $ 90,019 |
Work-in-process | 30,220 | 25,166 |
Finished goods | 108,253 | 99,784 |
Gross inventories | 242,537 | 214,969 |
Excess and obsolete reserves | (24,133) | (24,561) |
Net inventories | $ 218,404 | $ 190,408 |
Long-Lived Assets - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Apr. 02, 2017 |
Apr. 03, 2016 |
|
Finite-Lived Intangible Assets [Line Items] | ||
Depreciation expense | $ 11,400 | $ 11,700 |
Amortization of intangible assets | $ 23,669 | $ 25,532 |
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life (in years) | 10 years | |
Amortization of intangible assets | $ 800 |
Net Investment Hedge (Details) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Apr. 02, 2017
USD ($)
|
Apr. 03, 2016
USD ($)
|
Oct. 10, 2016
EUR (€)
|
|
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Foreign currency translation adjustment | $ (9,836) | $ (2,187) | |
4.125% Senior Subordinated Notes Due 2026 [Member] | Senior Subordinate Notes [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Aggregate principal amount outstanding of senior subordinated notes | € | € 200,000,000 | ||
Foreign currency translation adjustment | $ 6,900 |
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Apr. 02, 2017 |
Apr. 03, 2016 |
|
Operating Loss Carryforwards [Line Items] | ||
Income tax expense | $ (2,250) | $ (210) |
Effective tax rate | 8.10% | 1.30% |
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 Postretirement Obligations - Components of Net Periodic Benefit Costs (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Apr. 02, 2017 |
Apr. 03, 2016 |
|
Pension Obligations [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 1,093 | $ 1,409 |
Interest cost | 1,695 | 2,394 |
Expected return on plan assets | (2,361) | (3,191) |
Amortization of prior service credit | (11) | (9) |
Actuarial losses | 587 | 698 |
Net periodic benefit cost | 1,003 | 1,301 |
Other Postretirement Obligations [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 13 | 13 |
Interest cost | 327 | 368 |
Expected return on plan assets | 0 | 0 |
Amortization of prior service credit | 0 | (11) |
Actuarial losses | 23 | 82 |
Net periodic benefit cost | $ 363 | $ 452 |
Comprehensive Income and Accumulated Other Comprehensive Income (Loss) - Total Comprehensive Income (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Apr. 02, 2017 |
Apr. 03, 2016 |
|
Equity [Abstract] | ||
Net income | $ 25,581 | $ 16,358 |
Foreign currency translation loss, net of $0.1 million and $1.6 million tax, respectively | (9,836) | (2,187) |
Adjustments to pension and postretirement liability, net of $0.2 million and $0.3 million tax, respectively | 368 | 467 |
Total comprehensive income | 16,113 | 14,638 |
Less: Comprehensive loss attributable to noncontrolling interest | (163) | (101) |
Comprehensive income attributable to Belden | 16,276 | 14,739 |
Foreign currency translation, tax income (loss) | 100 | 1,600 |
Adjustments to pension and postretirement liability, tax | $ 200 | $ 300 |
Subsequent Events Purchase Price of Business (Details) $ in Millions |
May 03, 2017
USD ($)
|
---|---|
Subsequent Event | Thinklogical Holdings LLC | |
Business Acquisition [Line Items] | |
Sale price of business | $ 160.0 |
&!)'X)&/D3*G(MI'9*>3 K=P57TA:Z%C:V"G2^
MR19B&*,5)6_^[B%RE>SWY<&@E0<&_4D,L6O!?F(^S%HL_ER';BHC;%6C";.\
MM1BA#*;8+BM@46-;RF^F'8F@9/?.],+%[MSR]LC4Z+_PL5]^)?Q6=R(X,ZDJ
MO:G'5\8D50Y%3\J52K7H>='0J]333,WYV*?&A63]U(/!_$>@^ -02P,$%
M @ W72H2A)US-MM! /Q4 !@ !X;"]W;W)K <[*E[>_F(.JU
MG_G>@1SQN14O]/J53 G%OC=E_YU<2"OEBD3&J&C+]:]7G;F@W>1%HG3X?7PV
MO7Y>)_\W,[C58^-I#5A="K!"
M SE =S+@'EYJDA O)S0V''P %,]>TJFXK_"%:0/#TI\CA*EC2LI>^M032Q>BN*OXRYTW(?Q9K^?8.N
M9 (D,^ 0\[ Q453^B3M>9 8'8L;>=SP\\?:8^-Z4P1E;$>^\>.N]UV*;WF;L
M&HBFF-,8DRQCY@CFV><4R5J*4_(//%F'[U85[B)\]X?"PSI!NDJ01H+TOR6N
MQ7S\*PE;]%2!:>(T65)BK^,D+[SSP-XE\4U^AX_3_LA-([0E%W3^96/_:T0'
M7LKFQH]0ZS_8;$BH73C>^K,9QVPT'';3#V+S-RY^ 5!+ P04 " #==*A*
M&=M)AK(! #2 P &0 'AL+W=O 7P(&NSB34,D9
M\248WZJ<;H(@D%"ZP,#]=H$'D#(0>1F_)TXZIPS Y?G*_B76[FLYJ"^-U5PQE;$.Y^\]=Y+2=-]3BY!:,8<)PQ=8=(%0;SZ
M$H)NA3C2?^ATF[[;S' 7Z;MU].O_"&2; ED4R/XJ\?.'$C
&> :Q$P(Y,>$W68<]]98<@9;:AH
M].L&03GC/'Z$:F$)&)8 87%L((0&PND=$T$#T82.Z3'"[)@@<&8;0U\Q\"4,
M7['M*PHH&?"50%^)[4O$V ),+^"Z7U+'!0E(./0R%B!'E/F@?IS>(-L?284
M>(M,;]3R9A:W@D00H@>"V4H8""0V V&6%QHF?"AM3&V"N)V80@A L
)$%P@0@4B)Q!?"42]2AI,ZC"5PV1IU .MAJ 0SR-&\XB1/&)<
M@*("]..=2%"!!,F ]M:]P="+(JEY2YD?'BA% Z5(H*07J,$ N6SG) 0\3(:&
MR9 P*2XP106F'^\HA+C=0B2'K.\E##1B ABQ-0PEDH%G8;!#86SA '<;$"0.
M]..001P:PN@> =R7@!@S&>L^;BF(/[& N*F (EE$_1