QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(Exact name of registrant as specified in its charter) | |||||||||||
(State or other jurisdiction of | (I.R.S. Employer | ||||||||||
incorporation or organization) | Identification No.) | ||||||||||
| |||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
x | Accelerated filer | ☐ | ||||||||||||
Non-accelerated filer | o | Smaller reporting company | ||||||||||||
Emerging growth company |
Page | |||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net sales | $ | $ | $ | $ | |||||||||||||||||||
Cost of sales | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Selling and administrative expenses | |||||||||||||||||||||||
Operating income | |||||||||||||||||||||||
Interest and other non-operating expenses, net | |||||||||||||||||||||||
Income before income taxes and equity in earnings | |||||||||||||||||||||||
Provision for income taxes | |||||||||||||||||||||||
Equity in earnings of unconsolidated investments, net | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Earnings per share attributable to common stockholders: | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | $ | $ | $ | $ | |||||||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted | |||||||||||||||||||||||
Cash dividends declared per common share | $ | $ | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Foreign currency translation gain (loss) | ( | ( | |||||||||||||||||||||
Unrealized gains (losses) on interest rate swaps, net of the change in taxes of $( | ( | ||||||||||||||||||||||
Total other comprehensive income (loss) | ( | ||||||||||||||||||||||
Comprehensive income | $ | $ | $ | $ | |||||||||||||||||||
June 30, | June 30, | December 31, | ||||||||||||||||||
2023 | 2022 | 2022 | ||||||||||||||||||
(Unaudited) | (Unaudited) | (Audited) | ||||||||||||||||||
Assets | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | |||||||||||||||||
Receivables, net | ||||||||||||||||||||
Receivables pledged under receivables facility | ||||||||||||||||||||
Product inventories, net | ||||||||||||||||||||
Prepaid expenses and other current assets | ||||||||||||||||||||
Total current assets | ||||||||||||||||||||
Property and equipment, net | ||||||||||||||||||||
Goodwill | ||||||||||||||||||||
Other intangible assets, net | ||||||||||||||||||||
Equity interest investments | ||||||||||||||||||||
Operating lease assets | ||||||||||||||||||||
Other assets | ||||||||||||||||||||
Total assets | $ | $ | $ | |||||||||||||||||
Liabilities and stockholders’ equity | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Accounts payable | $ | $ | $ | |||||||||||||||||
Accrued expenses and other current liabilities | ||||||||||||||||||||
Short-term borrowings and current portion of long-term debt | ||||||||||||||||||||
Current operating lease liabilities | ||||||||||||||||||||
Total current liabilities | ||||||||||||||||||||
Deferred income taxes | ||||||||||||||||||||
Long-term debt, net | ||||||||||||||||||||
Other long-term liabilities | ||||||||||||||||||||
Non-current operating lease liabilities | ||||||||||||||||||||
Total liabilities | ||||||||||||||||||||
Stockholders’ equity: | ||||||||||||||||||||
Common stock, $ outstanding at June 30, 2023, June 30, 2022 and December 31, 2022, respectively | ||||||||||||||||||||
Additional paid-in capital | ||||||||||||||||||||
Retained earnings | ||||||||||||||||||||
Accumulated other comprehensive income | ||||||||||||||||||||
Total stockholders’ equity | ||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | $ | $ |
Six Months Ended | ||||||||||||||
June 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
Operating activities | ||||||||||||||
Net income | $ | $ | ||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Depreciation | ||||||||||||||
Amortization | ||||||||||||||
Share-based compensation | ||||||||||||||
Equity in earnings of unconsolidated investments, net | ( | ( | ||||||||||||
Other | ||||||||||||||
Changes in operating assets and liabilities, net of effects of acquisitions: | ||||||||||||||
Receivables | ( | ( | ||||||||||||
Product inventories | ( | |||||||||||||
Prepaid expenses and other assets | ( | ( | ||||||||||||
Accounts payable | ||||||||||||||
Accrued expenses and other liabilities | ( | |||||||||||||
Net cash provided by operating activities | ||||||||||||||
Investing activities | ||||||||||||||
Acquisition of businesses, net of cash acquired | ( | ( | ||||||||||||
Purchases of property and equipment, net of sale proceeds | ( | ( | ||||||||||||
Other investments, net | ( | |||||||||||||
Net cash used in investing activities | ( | ( | ||||||||||||
Financing activities | ||||||||||||||
Proceeds from revolving line of credit | ||||||||||||||
Payments on revolving line of credit | ( | ( | ||||||||||||
Proceeds from term loan under credit facility | ||||||||||||||
Proceeds from asset-backed financing | ||||||||||||||
Payments on asset-backed financing | ( | ( | ||||||||||||
Payments on term facility | ( | ( | ||||||||||||
Proceeds from short-term borrowings and current portion of long-term debt | ||||||||||||||
Payments on short-term borrowings and current portion of long-term debt | ( | ( | ||||||||||||
Payments of deferred and contingent acquisition consideration | ( | ( | ||||||||||||
Proceeds from stock issued under share-based compensation plans | ||||||||||||||
Payments of cash dividends | ( | ( | ||||||||||||
Purchases of treasury stock | ( | ( | ||||||||||||
Net cash (used in) provided by financing activities | ( | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | ||||||||||||||
Change in cash and cash equivalents | ||||||||||||||
Cash and cash equivalents at beginning of period | ||||||||||||||
Cash and cash equivalents at end of period | $ | $ |
Common Stock | Additional Paid-In | Retained | Accumulated Other Comprehensive | |||||||||||||||||||||||||||||||||||
Shares | Amount | Capital | Earnings | Income | Total | |||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||
Net income | ||||||||||||||||||||||||||||||||||||||
Foreign currency translation | ||||||||||||||||||||||||||||||||||||||
Interest rate swaps, net of the change in taxes of $ | ( | ( | ||||||||||||||||||||||||||||||||||||
Repurchases of common stock, net of retirements | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Share-based compensation | ||||||||||||||||||||||||||||||||||||||
Issuance of stock under share-based compensation plans | ||||||||||||||||||||||||||||||||||||||
Declaration of cash dividends | ( | ( | ||||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||
Net income | ||||||||||||||||||||||||||||||||||||||
Foreign currency translation | ||||||||||||||||||||||||||||||||||||||
Interest rate swaps, net of the change in taxes of $( | ||||||||||||||||||||||||||||||||||||||
Repurchases of common stock, net of retirements | ||||||||||||||||||||||||||||||||||||||
Share-based compensation | ||||||||||||||||||||||||||||||||||||||
Issuance of stock under share-based compensation plans | ||||||||||||||||||||||||||||||||||||||
Declaration of cash dividends | ( | ( | ||||||||||||||||||||||||||||||||||||
Other | ( | ( | ||||||||||||||||||||||||||||||||||||
Balance at June 30, 2023 | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-In | Retained | Accumulated Other Comprehensive | |||||||||||||||||||||||||||||||||||
Shares | Amount | Capital | Earnings | Income | Total | |||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||
Net income | ||||||||||||||||||||||||||||||||||||||
Foreign currency translation | ( | ( | ||||||||||||||||||||||||||||||||||||
Interest rate swaps, net of the change in taxes of $( | ||||||||||||||||||||||||||||||||||||||
Repurchases of common stock, net of retirements | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Share-based compensation | ||||||||||||||||||||||||||||||||||||||
Issuance of stock under share-based compensation plans | ||||||||||||||||||||||||||||||||||||||
Declaration of cash dividends | ( | ( | ||||||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||
Net income | ||||||||||||||||||||||||||||||||||||||
Foreign currency translation | ( | ( | ||||||||||||||||||||||||||||||||||||
Interest rate swaps, net of the change in taxes of $( | ||||||||||||||||||||||||||||||||||||||
Repurchases of common stock, net of retirements | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Share-based compensation | ||||||||||||||||||||||||||||||||||||||
Issuance of stock under share-based compensation plans | ||||||||||||||||||||||||||||||||||||||
Declaration of cash dividends | ( | ( | ||||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||
June 30, | December 31, | ||||||||||||||||
2023 | 2022 | 2022 | |||||||||||||||
Foreign currency translation adjustments | $ | ( | $ | ( | $ | ( | |||||||||||
Unrealized gains on interest rate swaps, net of tax | |||||||||||||||||
Accumulated other comprehensive income | $ | $ | $ |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | ||||||||||||||||||||||
Amounts allocated to participating securities | ( | ( | ( | ( | ||||||||||||||||||||||
Net income attributable to common stockholders | $ | $ | $ | $ | ||||||||||||||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||||||||
Basic | ||||||||||||||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||||||||||
Stock options and employee stock purchase plan | ||||||||||||||||||||||||||
Diluted | ||||||||||||||||||||||||||
Earnings per share attributable to common stockholders: | ||||||||||||||||||||||||||
Basic | $ | $ | $ | $ | ||||||||||||||||||||||
Diluted | $ | $ | $ | $ | ||||||||||||||||||||||
Anti-dilutive stock options excluded from diluted earnings per share computations (1) |
Fair Value at June 30, | ||||||||||||||||||||||||||
Input Level | Classification | 2023 | 2022 | |||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Unrealized gains on interest rate swaps | Level 2 | Other assets | $ | $ | ||||||||||||||||||||||
Deferred compensation plan asset | Level 1 | Other assets | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||
Contingent consideration liabilities | Level 3 | Accrued expenses and other current liabilities | $ | $ | ||||||||||||||||||||||
Deferred compensation plan liability | Level 1 | Other long-term liabilities |
Derivative | Inception Date | Effective Date | Termination Date | Notional Amount (in millions) | Fixed Interest Rate | |||||||||||||||||||||||||||
Interest rate swap 1 | February 5, 2020 | $ | ||||||||||||||||||||||||||||||
Interest rate swap 2 | March 9, 2020 | $ |
Derivative | Inception Date | Effective Date | Termination Date | Notional Amount (in millions) | Fixed Interest Rate | |||||||||||||||||||||||||||
Forward-starting interest rate swap | March 9, 2020 | $ |
June 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
Variable rate debt | ||||||||||||||
Short-term borrowings | $ | $ | ||||||||||||
Current portion of long-term debt: | ||||||||||||||
Australian credit facility | ||||||||||||||
Current portion of term loans under credit facility | ||||||||||||||
Short-term borrowings and current portion of long-term debt | $ | $ | ||||||||||||
Long-term portion: | ||||||||||||||
Revolving credit facility | ||||||||||||||
Term loan under credit facility | ||||||||||||||
Term facility | ||||||||||||||
Receivables securitization facility | ||||||||||||||
Less: financing costs, net | ||||||||||||||
Long-term debt, net | ||||||||||||||
Total debt | $ | $ |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Net sales | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||||||
Cost of sales | 69.4 | 67.6 | 69.4 | 67.9 | ||||||||||||||||||||||
Gross profit | 30.6 | 32.4 | 30.6 | 32.1 | ||||||||||||||||||||||
Selling and administrative expenses | 13.0 | 12.1 | 15.2 | 13.2 | ||||||||||||||||||||||
Operating income | 17.6 | 20.4 | 15.4 | 18.9 | ||||||||||||||||||||||
Interest and other non-operating expenses, net | 0.9 | 0.4 | 1.1 | 0.4 | ||||||||||||||||||||||
Income before income taxes and equity in earnings | 16.7 | % | 20.0 | % | 14.4 | % | 18.5 | % |
Three Months Ended | ||||||||||||||||||||||||||
June 30, | ||||||||||||||||||||||||||
(in millions) | 2023 | 2022 | Change | |||||||||||||||||||||||
Net sales | $ | 1,857.4 | $ | 2,055.8 | $ | (198.4) | (10)% |
Three Months Ended | ||||||||||||||||||||||||||
June 30, | ||||||||||||||||||||||||||
(in millions) | 2023 | 2022 | Change | |||||||||||||||||||||||
Gross profit | $ | 567.8 | $ | 666.8 | $ | (99.0) | (15)% | |||||||||||||||||||
Gross margin | 30.6 | % | 32.4 | % |
Three Months Ended | ||||||||||||||||||||||||||
June 30, | ||||||||||||||||||||||||||
(in millions) | 2023 | 2022 | Change | |||||||||||||||||||||||
Selling and administrative expenses | $ | 240.8 | $ | 247.9 | $ | (7.1) | (3)% | |||||||||||||||||||
Operating expenses as a % of net sales | 13.0 | % | 12.1 | % |
December 31, 2022 | 420 | ||||
Acquired locations | 4 | ||||
New locations | 8 | ||||
June 30, 2023 | 432 |
Six Months Ended | ||||||||||||||||||||||||||
June 30, | ||||||||||||||||||||||||||
(in millions) | 2023 | 2022 | Change | |||||||||||||||||||||||
Net sales | $ | 3,064.1 | $ | 3,468.5 | $ | (404.4) | (12)% |
Six Months Ended | ||||||||||||||||||||||||||
June 30, | ||||||||||||||||||||||||||
(in millions) | 2023 | 2022 | Change | |||||||||||||||||||||||
Gross profit | $ | 937.5 | $ | 1,114.0 | $ | (176.5) | (16)% | |||||||||||||||||||
Gross margin | 30.6 | % | 32.1 | % |
Six Months Ended | ||||||||||||||||||||||||||
June 30, | ||||||||||||||||||||||||||
(in millions) | 2023 | 2022 | Change | |||||||||||||||||||||||
Selling and administrative expenses | $ | 464.8 | $ | 459.4 | $ | 5.4 | 1% | |||||||||||||||||||
Operating expenses as a % of net sales | 15.2 | % | 13.2 | % |
(Unaudited) | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||
Diluted EPS | $ | $ | $ | $ | |||||||||||||||||||||||||
ASU 2016-09 tax benefit | (0.02) | (0.04) | (0.14) | (0.22) | |||||||||||||||||||||||||
Adjusted diluted EPS | $ | 5.89 | $ | 7.59 | $ | 8.34 | $ | 11.81 | |||||||||||||||||||||
(Unaudited) | QUARTER | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | 2023 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Second | First | Fourth | Third | Second | First | Fourth | Third | ||||||||||||||||||||||||||||||||||||||||||||||
Statement of Income Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 1,857,363 | $ | 1,206,774 | $ | 1,095,920 | $ | 1,615,339 | $ | 2,055,818 | $ | 1,412,650 | $ | 1,035,557 | $ | 1,411,448 | |||||||||||||||||||||||||||||||||||||
Gross profit | 567,783 | 369,755 | 315,731 | 503,687 | 666,804 | 447,189 | 322,376 | 441,899 | |||||||||||||||||||||||||||||||||||||||||||||
Operating income | 327,009 | 145,771 | 107,295 | 263,877 | 418,888 | 235,723 | 127,891 | 237,276 | |||||||||||||||||||||||||||||||||||||||||||||
Net income | 232,250 | 101,699 | 71,863 | 190,055 | 307,283 | 179,261 | 107,609 | 184,665 | |||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total receivables, net | $ | 630,950 | $ | 564,171 | $ | 351,448 | $ | 549,796 | $ | 756,585 | $ | 679,927 | $ | 376,571 | $ | 476,150 | |||||||||||||||||||||||||||||||||||||
Product inventories, net | 1,392,886 | 1,686,683 | 1,591,060 | 1,539,572 | 1,579,101 | 1,641,155 | 1,339,100 | 1,043,407 | |||||||||||||||||||||||||||||||||||||||||||||
Accounts payable | 485,100 | 739,749 | 406,667 | 442,226 | 604,225 | 685,946 | 398,697 | 414,156 | |||||||||||||||||||||||||||||||||||||||||||||
Total debt | 1,184,586 | 1,365,750 | 1,386,803 | 1,512,545 | 1,595,398 | 1,505,073 | 1,183,350 | 362,819 |
Weather | Possible Effects | |||||||
Hot and dry | • | Increased purchases of chemicals and supplies | ||||||
for existing swimming pools | ||||||||
• | Increased purchases of above-ground pools and | |||||||
irrigation and lawn care products | ||||||||
Unseasonably cool weather or extraordinary amounts | • | Fewer pool and irrigation and landscape | ||||||
of rain | installations | |||||||
• | Decreased purchases of chemicals and supplies | |||||||
• | Decreased purchases of impulse items such as | |||||||
above-ground pools and accessories | ||||||||
Unseasonably early warming trends in spring/late cooling | • | A longer pool and landscape season, thus positively | ||||||
trends in fall | impacting our sales | |||||||
(primarily in the northern half of the U.S. and Canada) | ||||||||
Unseasonably late warming trends in spring/early cooling | • | A shorter pool and landscape season, thus negatively | ||||||
trends in fall | impacting our sales | |||||||
(primarily in the northern half of the U.S. and Canada) |
Six Months Ended | ||||||||||||||
June 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
Operating activities | $ | 376,777 | $ | 28,731 | ||||||||||
Investing activities | (41,860) | (27,431) | ||||||||||||
Financing activities | (328,542) | 64,643 |
Period | Total Number of Shares Purchased (1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plan | Maximum Approximate Dollar Value of Shares That May Yet be Purchased Under the Plan (2) | ||||||||||||||||||||||
April 1-30, 2023 | 6 | $ | 351.32 | — | $ | 186,382,518 | ||||||||||||||||||||
May 1-31, 2023 | — | $ | — | — | $ | 600,000,000 | ||||||||||||||||||||
June 1-30, 2023 | — | $ | — | — | $ | 600,000,000 | ||||||||||||||||||||
Total | 6 | $ | 351.32 | — |
Incorporated by Reference | ||||||||||||||||||||||||||||||||||||||
No. | Description | Filed/ Furnished with this Form 10-Q | Form | File No. | Date Filed | |||||||||||||||||||||||||||||||||
Restated Certificate of Incorporation of the Company. | 10-Q | 000-26640 | 8/9/2006 | |||||||||||||||||||||||||||||||||||
Amended and Restated Bylaws of the Company. | 8-K | 000-26640 | 2/8/2019 | |||||||||||||||||||||||||||||||||||
Form of certificate representing shares of common stock of the Company. | 8-K | 000-26640 | 5/19/2006 | |||||||||||||||||||||||||||||||||||
Second Amendment to the Second Amended and Restated Credit Agreement, dated June 30, 2023, among Pool Corporation as U.S. Borrower, SCP Distributors Canada Inc. as Canadian Borrower, SCP International, Inc. as Euro Borrower, the Subsidiary Guarantors party thereto, Wells Fargo Bank, National Association, as Administrative Agent, and certain other lenders party thereto. | 8-K | 000-26640 | 7/5/2023 | |||||||||||||||||||||||||||||||||||
Second Amendment to Credit Agreement, dated June 30, 2023, among Pool Corporation as Borrower, the Guarantors party thereto and Bank of America, N.A. as Lender. | 8-K | 000-26640 | 7/5/2023 | |||||||||||||||||||||||||||||||||||
Certification by Chief Financial Officer pursuant to Rule 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | X | |||||||||||||||||||||||||||||||||||||
Certification by Chief Executive Officer pursuant to Rule 13a-14(a) and 15d‑14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | X | |||||||||||||||||||||||||||||||||||||
Certification by Chief Executive Officer and Chief Financial Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | X | |||||||||||||||||||||||||||||||||||||
101.INS | + | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | X | |||||||||||||||||||||||||||||||||||
101.SCH | + | Inline XBRL Taxonomy Extension Schema Document | X | |||||||||||||||||||||||||||||||||||
101.CAL | + | Inline XBRL Taxonomy Extension Calculation Linkbase Document | X | |||||||||||||||||||||||||||||||||||
101.DEF | + | Inline XBRL Taxonomy Extension Definition Linkbase Document | X | |||||||||||||||||||||||||||||||||||
101.LAB | + | Inline XBRL Taxonomy Extension Label Linkbase Document | X | |||||||||||||||||||||||||||||||||||
101.PRE | + | Inline XBRL Taxonomy Extension Presentation Linkbase Document | X | |||||||||||||||||||||||||||||||||||
104 | + | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101) | X |
POOL CORPORATION | ||||||||
By: | /s/ Melanie Housey Hart | |||||||
Melanie Housey Hart | ||||||||
Vice President and Chief Financial Officer, and duly authorized signatory on behalf of the registrant |
Date: | July 27, 2023 | /s/ Melanie Housey Hart | ||||||
Melanie Housey Hart | ||||||||
Vice President and Chief Financial Officer |
Date: | July 27, 2023 | /s/ Peter D. Arvan | ||||||
Peter D. Arvan | ||||||||
President and Chief Executive 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. |
/s/ Peter D. Arvan | |||||
Peter D. Arvan | |||||
President and Chief Executive Officer | |||||
/s/ Melanie Housey Hart | |||||
Melanie Housey Hart | |||||
Vice President and Chief Financial Officer |
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Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Income Statement [Abstract] | ||||
Net sales | $ 1,857,363 | $ 2,055,818 | $ 3,064,138 | $ 3,468,468 |
Cost of sales | 1,289,580 | 1,389,014 | 2,126,599 | 2,354,474 |
Gross profit | 567,783 | 666,804 | 937,539 | 1,113,994 |
Selling and administrative expenses | 240,774 | 247,916 | 464,758 | 459,382 |
Operating income | 327,009 | 418,888 | 472,781 | 654,612 |
Interest and other non-operating expenses, net | 16,892 | 8,523 | 32,728 | 13,722 |
Income before income taxes and equity earnings | 310,117 | 410,365 | 440,053 | 640,890 |
Provision for income taxes | 77,987 | 103,160 | 106,260 | 154,482 |
Equity earnings in unconsolidated investments, net | 120 | 78 | 156 | 136 |
Net income | $ 232,250 | $ 307,283 | $ 333,949 | $ 486,544 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 5.95 | $ 7.71 | $ 8.55 | $ 12.16 |
Diluted (in dollars per share) | $ 5.91 | $ 7.63 | $ 8.48 | $ 12.03 |
Weighted average shares outstanding: [Abstract] | ||||
Basic (in shares) | 38,837 | 39,660 | 38,857 | 39,795 |
Diluted (in shares) | 39,115 | 40,064 | 39,155 | 40,231 |
Cash dividends declared per common share | $ 1.10 | $ 1.00 | $ 2.10 | $ 1.80 |
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 232,250 | $ 307,283 | $ 333,949 | $ 486,544 |
Other comprehensive income (loss): | ||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax | 2,801 | (7,125) | 5,271 | (7,339) |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | 3,497 | 4,893 | (313) | 16,491 |
Total other comprehensive income (loss) | 6,298 | (2,232) | 4,958 | 9,152 |
Comprehensive income | $ 238,548 | $ 305,051 | $ 338,907 | $ 495,696 |
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2023 |
Mar. 31, 2023 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Statement of Comprehensive Income [Abstract] | ||||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, Tax | $ (1,166) | $ 1,269 | $ (1,631) | $ (3,866) | $ 104 | $ (5,497) |
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
Jun. 30, 2022 |
---|---|---|---|
Current assets: | |||
Cash and cash equivalents | $ 53,225 | $ 45,591 | $ 91,481 |
Receivables, net | 203,459 | 128,247 | 239,639 |
Receivables pledged under receivables facility | 427,491 | 223,201 | 516,946 |
Product inventories, net | 1,392,886 | 1,591,060 | 1,579,101 |
Prepaid expenses and other current assets | 19,994 | 30,892 | 43,317 |
Total current assets | 2,097,055 | 2,018,991 | 2,470,484 |
Property and equipment, net | 209,541 | 193,709 | 183,480 |
Goodwill Balances | 699,918 | 691,993 | 692,972 |
Other intangible assets, net | 302,444 | 305,450 | 309,375 |
Equity interest investments | 1,278 | 1,248 | 1,179 |
Operating lease assets | 279,468 | 269,608 | 259,571 |
Other assets | 90,875 | 84,438 | 45,044 |
Total assets | 3,680,579 | 3,565,437 | 3,962,105 |
Current liabilities: | |||
Accounts payable | 485,100 | 406,667 | 604,225 |
Accrued expenses and other current liabilities | 170,658 | 168,521 | 195,529 |
Short-term borrowings and current portion of long-term debt | 36,219 | 25,042 | 19,731 |
Current operating lease liabilities | 79,763 | 75,484 | 71,550 |
Total current liabilities | 771,740 | 675,714 | 891,035 |
Deferred income taxes | 58,151 | 58,759 | 42,380 |
Long-term debt, net | 1,148,367 | 1,361,761 | 1,575,667 |
Other long-term liabilities | 39,236 | 35,471 | 32,109 |
Non-current operating lease liabilities | 204,553 | 198,538 | 191,856 |
Total liabilities | 2,222,047 | 2,330,243 | 2,733,047 |
Stockholders' equity: | |||
Common stock | 39 | 39 | 40 |
Additional paid-in capital | 593,081 | 575,776 | 564,641 |
Retained earnings | 854,559 | 653,484 | 662,709 |
Accumulated other comprehensive income | 10,853 | 5,895 | 1,668 |
Total stockholders’ equity | 1,458,532 | 1,235,194 | 1,229,058 |
Total liabilities and stockholders' equity | $ 3,680,579 | $ 3,565,437 | $ 3,962,105 |
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares |
Jun. 30, 2023 |
Dec. 31, 2022 |
Jun. 30, 2022 |
---|---|---|---|
Statement of Financial Position [Abstract] | |||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 |
Common Stock, Shares, Outstanding | 39,048,604 | 39,069,419 | 39,588,231 |
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2023 |
Mar. 31, 2023 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
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Statement of Stockholders' Equity [Abstract] | ||||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, Tax | $ (1,166) | $ 1,269 | $ (1,631) | $ (3,866) | $ 104 | $ (5,497) |
Summary of Significant Accounting Policies |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description of New Accounting Pronouncements Not yet Adopted | Summary of Significant Accounting Policies Pool Corporation (the Company, which may be referred to as we, us or our) prepared the unaudited interim Consolidated Financial Statements following U.S. generally accepted accounting principles (GAAP) and the requirements of the Securities and Exchange Commission (SEC) for interim financial information. As permitted under those rules, we have condensed or omitted certain footnotes and other financial information required for complete financial statements. The interim Consolidated Financial Statements include all normal and recurring adjustments that are necessary for a fair presentation of our financial position and operating results. All significant intercompany accounts and intercompany transactions have been eliminated. A description of our significant accounting policies is included in our 2022 Annual Report on Form 10-K. You should read the interim Consolidated Financial Statements in conjunction with the Consolidated Financial Statements and accompanying notes in our 2022 Annual Report on Form 10-K. The results for our three and six-month periods ended June 30, 2023, are not necessarily indicative of the expected results for our fiscal year ending December 31, 2023. Newly Adopted Accounting Pronouncements As of June 30, 2023, we adopted Accounting Standards Update (ASU) 2020-04, Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting, and all related amendments, which are codified into Accounting Standards Codification (ASC) 848. This new standard provides optional expedients and exceptions for applying GAAP to transactions affected by reference rate reform if certain criteria are met. These transactions include contract modifications, hedging relationships and sale or transfer of debt securities classified as held-to-maturity. The adoption of this standard did not have a material impact on our consolidated financial statements or related disclosures, and we do not expect a material impact in future periods. Income Taxes We reduce federal and state income taxes payable by the tax benefits associated with the exercise of nonqualified stock options and the lapse of restrictions on restricted stock awards. To the extent realized tax deductions exceed the amount of previously recognized deferred tax benefits related to share-based compensation, we record an excess tax benefit. We record all excess tax benefits as a component of income tax benefit or expense on the Consolidated Statements of Income in the period in which stock options are exercised or restrictions on restricted stock awards lapse. We recorded excess tax benefits of $0.6 million in the second quarter of 2023 compared to $1.6 million in the second quarter of 2022 and $5.4 million in the six months ended June 30, 2023, compared to $8.9 million in the six months ended June 30, 2022. Retained Earnings We account for the retirement of treasury shares as a reduction of Retained earnings. As of June 30, 2023, the Retained earnings on our Consolidated Balance Sheets reflects cumulative net income, the cumulative impact of adjustments for changes in accounting pronouncements, treasury share retirements since the inception of our share repurchase programs of $2.2 billion and cumulative dividends of $1.0 billion. Accumulated Other Comprehensive Income The table below presents the components of our Accumulated other comprehensive income balance (in thousands):
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Earnings Per Share |
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Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share We calculate basic and diluted earnings per share using the two-class method. Earnings per share under the two-class method is calculated using net income attributable to common stockholders, which is net income reduced by the earnings allocated to participating securities. Our participating securities include share-based payment awards that contain a non-forfeitable right to receive dividends and are considered to participate in undistributed earnings with common shareholders. Participating securities excluded from weighted average common shares outstanding were 205,000 for the three months ended June 30, 2023 and 218,000 for the three months ended June 30, 2022, and 209,000 for the six months ended June 30, 2023 and 229,000 for the six months ended June 30, 2022. The table below presents the computation of earnings per share, including the reconciliation of basic and diluted weighted average shares outstanding (in thousands, except per share data):
(1)Since these options have exercise prices that are higher than the average market prices of our common stock, including them in the calculation would have an anti-dilutive effect on earnings per share.
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Acquisitions |
6 Months Ended |
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Jun. 30, 2023 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions In June 2023, we acquired the distribution assets of Pioneer Pool Products, Inc., a wholesale distributor of swimming pool equipment, chemicals and supplies, adding one location in Alabama. In May 2023, we acquired the distribution assets of Recreation Supply Company, a wholesale distributor of commercial swimming pool products, adding one location in North Dakota. In March 2023, we acquired the distribution assets of Pro-Water Irrigation & Landscape Supply, Inc., a wholesale distributor of irrigation and landscape supply products, adding two locations in Arizona. In April 2022, we acquired the distribution assets of Tri-State Pool Distributors, a wholesale distributor of swimming pool equipment, chemicals and supplies, adding one location in West Virginia. We have completed our acquisition accounting for these acquisitions, subject to adjustments for standard holdback provisions per the terms of the purchase agreements, which are not material.
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Fair Value Measurements and Interest Rate Swaps |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements and Interest Rate Swaps | Fair Value Measurements and Interest Rate Swaps Recurring Fair Value Measurements Our assets and liabilities that are measured at fair value on a recurring basis include the unrealized gains or losses on our interest rate swap contracts, our deferred compensation plan asset and liability and contingent consideration related to recent acquisitions. The three levels of the fair value hierarchy under the accounting guidance are described below: Level 1 Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets. Level 2 Inputs to the valuation methodology include: •quoted prices for similar assets or liabilities in active markets; •quoted prices for identical or similar assets or liabilities in inactive markets; •inputs other than quoted prices that are observable for the asset or liability; or •inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The table below presents our assets and liabilities measured and recorded at fair value on a recurring basis (in thousands):
Interest Rate Swaps We utilize interest rate swap contracts and forward-starting interest rate swap contracts to reduce our exposure to fluctuations in variable interest rates for future interest payments on our variable rate borrowings. We use significant other observable market data or assumptions (Level 2 inputs) in determining the fair value of our interest rate swap contracts and forward-starting interest rate swap contract that we believe market participants would use in pricing similar assets or liabilities, including assumptions about counterparty risk. Our fair value estimates reflect an income approach based on the terms of the interest rate swap contracts and inputs corroborated by observable market data including interest rate curves. We recognize any differences between the variable interest rate in effect and the fixed interest rates per our swap contracts as an adjustment to interest expense over the life of the swaps. To the extent our derivatives are effective in offsetting the variability of the hedged cash flows, we record the changes in the estimated fair value of our interest rate swap contracts to Accumulated other comprehensive income on the Consolidated Balance Sheets. We currently have two swap contracts in place. These swap contracts were previously forward-starting and convert the variable interest rate to a fixed interest rate on a portion of our variable rate borrowings. Interest expense related to the notional amounts under these swap contracts is based on the fixed rates plus the applicable margin on a portion of our variable rate borrowings. Changes in the estimated fair value of these interest rate swap contracts are recorded to Accumulated other comprehensive income on the Consolidated Balance Sheets. The following table provides additional details related to these swap contracts:
For the interest rate swap contracts in effect at June 30, 2023, a portion of the change in the estimated fair value between periods relates to future interest expense. Recognition of the change in fair value between periods attributable to accrued interest is reclassified from Accumulated other comprehensive income on the Consolidated Balance Sheets to Interest and other non-operating expenses, net on the Consolidated Statements of Income. These amounts were not material in the three and six-month periods ended June 30, 2023 or June 30, 2022. We also have in place a forward-starting interest rate swap contract to extend the hedged period for future interest payments on a portion of our variable rate borrowings. The following table provides details related to our forward-starting interest rate swap contract:
Failure of our swap counterparties would result in the loss of any potential benefit to us under our swap agreements. In this case, we would still be obligated to pay the variable interest payments underlying our debt agreements. Additionally, failure of our swap counterparties would not eliminate our obligation to continue to make payments under our existing swap agreements if we were in a net pay position. We amended the floating rate option for our interest rate swap contracts and forward-starting interest rate swap contract, effective June 30, 2023, to reflect the change in the reference rate in our debt agreements from the one month London Interbank Offered Rate Market Index Rate (LIBOR) to the one month Term Secured Overnight Financing Rate Index Rate (Term SOFR). As permitted by ASC 848, a change in rate only does not qualify as a hedge modification, and we have accounted for and presented our interest rate swaps contracts and forward-starting interest rate swap contract in the same manner as prior to the amendments. Our interest rate swap contracts and forward-starting interest rate swap contract are subject to master netting arrangements. According to our accounting policy, we do not offset the fair values of assets with the fair values of liabilities related to these contracts. Other Our deferred compensation plan asset represents investments in securities (primarily mutual funds) traded in an active market (Level 1 inputs) held for the benefit of certain employees as part of our deferred compensation plan. We record an equal and offsetting deferred compensation plan liability, which represents our obligation to participating employees. Changes in the fair value of the plan asset and liability are reflected in Selling and administrative expenses in the Consolidated Statements of Income. The carrying values of cash and cash equivalents, receivables, accounts payable and accrued liabilities approximate fair value due to the short maturity of those instruments. The carrying value of our long-term debt approximates its fair value. Our determination of the estimated fair value reflects a discounted cash flow model using our estimates, including assumptions related to borrowing rates (Level 3 inputs).
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt The table below presents the components of our debt (in thousands):
On June 30, 2023, we entered into the Second Amendment to the Second Amended and Restated Credit Agreement (the Credit Facility Amendment) among us as U.S. Borrower, SCP Distributors Canada Inc. as Canadian Borrower, SCP International, Inc. as Euro Borrower, the Subsidiary Guarantors party thereto, Wells Fargo Bank, National Association, as Administrative Agent, and certain other lenders party thereto. The Credit Facility Amendment updated the index used for the Base Rate (as further defined within the Credit Facility Amendment) from LIBOR to Term SOFR. The Credit Facility Amendment also increased the maximum amount for the Accounts Securitization (as further defined within the Credit Facility Amendment) from $350.0 million to $500.0 million and increased the Canadian Dollar Commitment, Euro Commitment and Swingline Commitment (all as further defined within the Credit Facility Amendment) to $50.0 million each. We also entered into the Second Amendment to Credit Agreement (the Term Facility Amendment) on June 30, 2023, among us, as Borrower, the Guarantors party thereto and Bank of America, N.A. as Lender. The Term Facility Amendment updated the index used for the Base Rate (as further defined within the Term Facility Amendment) from LIBOR to SOFR. Our accounts receivable securitization facility (the Receivables Facility) provides for the sale of certain of our receivables to a wholly-owned subsidiary (the Securitization Subsidiary). The Securitization Subsidiary transfers variable undivided percentage interests in the receivables and related rights to certain third-party financial institutions in exchange for cash proceeds, limited to the applicable funding capacities. We account for the sale of the receivable interests as a secured borrowing on our Consolidated Balance Sheets. The receivables subject to the agreement collateralize the cash proceeds received from the third-party financial institutions. We classify the entire outstanding balance as Long-term debt, net on our Consolidated Balance Sheets as we intend and have the ability to refinance the obligations on a long-term basis. We present the receivables that collateralize the cash proceeds separately as Receivables pledged under receivables facility on our Consolidated Balance Sheets.
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Summary of Significant Accounting Policies (Policies) |
6 Months Ended |
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Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Pool Corporation (the Company, which may be referred to as we, us or our) prepared the unaudited interim Consolidated Financial Statements following U.S. generally accepted accounting principles (GAAP) and the requirements of the Securities and Exchange Commission (SEC) for interim financial information. As permitted under those rules, we have condensed or omitted certain footnotes and other financial information required for complete financial statements. The interim Consolidated Financial Statements include all normal and recurring adjustments that are necessary for a fair presentation of our financial position and operating results. All significant intercompany accounts and intercompany transactions have been eliminated.
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Newly Adopted Accounting Pronouncements | Newly Adopted Accounting PronouncementsAs of June 30, 2023, we adopted Accounting Standards Update (ASU) 2020-04, Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting, and all related amendments, which are codified into Accounting Standards Codification (ASC) 848. This new standard provides optional expedients and exceptions for applying GAAP to transactions affected by reference rate reform if certain criteria are met. These transactions include contract modifications, hedging relationships and sale or transfer of debt securities classified as held-to-maturity. The adoption of this standard did not have a material impact on our consolidated financial statements or related disclosures, and we do not expect a material impact in future periods. |
Income Taxes | We reduce federal and state income taxes payable by the tax benefits associated with the exercise of nonqualified stock options and the lapse of restrictions on restricted stock awards. To the extent realized tax deductions exceed the amount of previously recognized deferred tax benefits related to share-based compensation, we record an excess tax benefit. We record all excess tax benefits as a component of income tax benefit or expense on the Consolidated Statements of Income in the period in which stock options are exercised or restrictions on restricted stock awards lapse. |
Retained Earnings | We account for the retirement of treasury shares as a reduction of Retained earnings. |
Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income | The table below presents the components of our Accumulated other comprehensive income balance (in thousands):
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Earnings Per Share (Tables) |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of earnings per share and reconciliation of basic and diluted weighted average common shares outstanding |
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Fair Value Measurements and Interest Rate Swaps (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated fair value of contracts | The table below presents our assets and liabilities measured and recorded at fair value on a recurring basis (in thousands):
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Schedule of Interest Rate Derivatives | The following table provides additional details related to these swap contracts:
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Debt (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | The table below presents the components of our debt (in thousands):
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Summary of Significant Accounting Policies - Income Taxes (Details) - USD ($) $ in Millions |
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Accounting Policies [Abstract] | ||||
Excess tax benefit | $ 0.6 | $ 1.6 | $ 5.4 | $ 8.9 |
Summary of Significant Accounting Policies - Retained Earnings (Details) $ in Millions |
Jun. 30, 2023
USD ($)
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Retained Earnings (Accumulated Deficit) [Abstract] | |
Cumulative share repurchases | $ 2,200.0 |
Cumulative dividends | $ 1,000.0 |
Summary of Significant Accounting Policies - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
Jun. 30, 2022 |
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Accumulated Other Comprehensive Income [Line Items] | |||
Accumulated other comprehensive income | $ 10,853 | $ 5,895 | $ 1,668 |
AOCI Attributable to Parent | |||
Accumulated Other Comprehensive Income [Line Items] | |||
Accumulated other comprehensive income | 10,853 | 5,895 | 1,668 |
Foreign currency translation adjustments | |||
Accumulated Other Comprehensive Income [Line Items] | |||
Accumulated other comprehensive income | (14,338) | (19,608) | (16,919) |
Unrealized (losses) gains on interest rate swaps, net of tax | |||
Accumulated Other Comprehensive Income [Line Items] | |||
Accumulated other comprehensive income | $ 25,191 | $ 25,503 | $ 18,587 |
Acquisitions (Details) - numberOfReportingUnits |
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WEST VIRGINIA | Tri-State Pool Distributors | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Number of Locations | 1 | |||
ARIZONA | Pro-Water Irrigation & Landscape Supply, Inc. | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Number of Locations | 2 | |||
ALABAMA | Pioneer Pool Products, Inc. | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Number of Locations | 1 | |||
NORTH DAKOTA | Recreation Supply Company | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Number of Locations | 1 |
Fair Value Measurements and Interest Rate Swaps - Recurring Fair Value (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Jun. 30, 2022 |
---|---|---|
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred Compensation Plan Assets | $ 14,633 | $ 16,306 |
Deferred Compensation Liability, Classified, Noncurrent | 14,633 | 16,306 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unrealized gains on interest rate swaps | 33,632 | 24,828 |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration liabilities | $ 0 | $ 582 |
Fair Value Measurements and Interest Rate Swaps - Interest Rate Swaps (Details) - USD ($) $ in Thousands |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2023 |
Mar. 09, 2020 |
Feb. 05, 2020 |
|
Interest rate swap 1 | |||
Derivative [Line Items] | |||
Effective Date | Feb. 26, 2021 | ||
Termination Date | Feb. 28, 2025 | ||
Notional Amount (in millions) | $ 150,000 | ||
Fixed Interest Rate | 1.326% | ||
Interest rate swap 2 | |||
Derivative [Line Items] | |||
Effective Date | Sep. 29, 2022 | ||
Termination Date | Feb. 26, 2027 | ||
Notional Amount (in millions) | $ 150,000 | ||
Fixed Interest Rate | 0.669% |
Fair Value Measurements and Interest Rate Swaps - Forward-Starting Interest Rate Swaps (Details) - Forward-starting interest rate swap - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2023 |
Mar. 09, 2020 |
|
Derivative [Line Items] | ||
Effective Date | Feb. 28, 2025 | |
Termination Date | Feb. 26, 2027 | |
Derivative, Notional Amount | $ 150.0 | |
Fixed Interest Rate | 0.763% |
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