Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 26, 2021 | |
Document and Entity Information | ||
Entity Registrant Name | AMPHENOL CORPORATION | |
Entity Central Index Key | 0000820313 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2021 | |
Entity File Number | 1-10879 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 22-2785165 | |
Entity Address, Address Line One | 358 Hall Avenue | |
Entity Address, City or Town | Wallingford | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06492 | |
City Area Code | 203 | |
Local Phone Number | 265-8900 | |
Title of 12(b) Security | Class A Common Stock, $0.001 par value | |
Trading Symbol | APH | |
Security Exchange Name | NYSE | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 598,027,782 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 1,268.1 | $ 1,702 |
Short-term investments | 34.4 | 36.1 |
Total cash, cash equivalents and short-term investments | 1,302.5 | 1,738.1 |
Accounts receivable, less allowance for doubtful accounts of $44.5 and $44.8, respectively | 2,204.5 | 1,951.6 |
Inventories | 1,952.5 | 1,462.2 |
Prepaid expenses and other current assets | 392.1 | 338.9 |
Current assets held for sale | 1,068.2 | 0 |
Total current assets | 6,919.8 | 5,490.8 |
Property, plant and equipment, less accumulated depreciation of $1,881.3 and $1,738.6, respectively | 1,175.4 | 1,054.6 |
Goodwill | 5,839.4 | 5,032.1 |
Other intangible assets, net | 603.6 | 397.5 |
Other long-term assets | 387.9 | 352.3 |
Total assets | 14,926.1 | 12,327.3 |
Current Liabilities: | ||
Accounts payable | 1,300 | 1,120.7 |
Accrued salaries, wages and employee benefits | 224.9 | 195.4 |
Accrued income taxes | 101.2 | 112.6 |
Accrued dividends | 86.7 | 86.8 |
Other accrued expenses | 666.1 | 558.5 |
Current portion of long-term debt | 298.7 | 230.3 |
Current liabilities held for sale | 207.4 | 0 |
Total current liabilities | 2,885 | 2,304.3 |
Long-term debt, less current portion | 4,950 | 3,636.2 |
Accrued pension and postretirement benefit obligations | 221.6 | 228.6 |
Deferred income taxes | 452.2 | 299.1 |
Other long-term liabilities | 408.6 | 407.2 |
Equity: | ||
Common stock | 0.6 | 0.6 |
Additional paid-in capital | 2,289.5 | 2,068.1 |
Retained earnings | 4,080.6 | 3,705.4 |
Treasury stock, at cost | (89.3) | (111.1) |
Accumulated other comprehensive loss | (335.5) | (278.1) |
Total shareholders' equity attributable to Amphenol Corporation | 5,945.9 | 5,384.9 |
Noncontrolling interests | 62.8 | 67 |
Total equity | 6,008.7 | 5,451.9 |
Total liabilities and equity | $ 14,926.1 | $ 12,327.3 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Condensed Consolidated Balance Sheets | ||
Allowance for doubtful accounts | $ 44.5 | $ 44.8 |
Accumulated depreciation | $ 1,881.3 | $ 1,738.6 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Condensed Consolidated Statements of Income | ||||
Net sales | $ 2,818.5 | $ 2,323.4 | $ 7,849.5 | $ 6,172.9 |
Cost of sales | 1,928.6 | 1,588.5 | 5,388.9 | 4,274.4 |
Gross profit | 889.9 | 734.9 | 2,460.6 | 1,898.5 |
Acquisition-related expenses | 0 | 0 | 55.4 | 0 |
Selling, general and administrative expenses | 318.7 | 259.1 | 893 | 748.4 |
Operating income | 571.2 | 475.8 | 1,512.2 | 1,150.1 |
Interest expense | (29) | (28) | (86.7) | (87.1) |
Other income (expense), net | 0 | 1 | (0.3) | 3.4 |
Income from continuing operations before income taxes | 542.2 | 448.8 | 1,425.2 | 1,066.4 |
Provision for income taxes | (120.5) | (99.3) | (302.8) | (213.3) |
Net income from continuing operations | 421.7 | 349.5 | 1,122.4 | 853.1 |
Less: Net income from continuing operations attributable to noncontrolling interests | (2.9) | (2.9) | (6.9) | (6.7) |
Net income from continuing operations attributable to Amphenol Corporation | 418.8 | 346.6 | 1,115.5 | 846.4 |
Income from discontinued operations attributable to Amphenol Corporation, net of income taxes of ($1.5) and ($1.8) for 2021, respectively | 7.7 | 0 | 10.3 | 0 |
Net income attributable to Amphenol Corporation | $ 426.5 | $ 346.6 | $ 1,125.8 | $ 846.4 |
Net income per common share - Basic, Continuing operations (in dollars per share) | $ 0.70 | $ 0.58 | $ 1.87 | $ 1.42 |
Net income per common share - Basic, Discontinued operations, net of income taxes (in dollars per share) | 0.01 | 0 | 0.02 | 0 |
Net income per common share - Basic (in dollars per share) | $ 0.71 | $ 0.58 | $ 1.88 | $ 1.42 |
Weighted average common shares outstanding - Basic (in shares) | 597.7 | 597.5 | 597.8 | 595.2 |
Net income per common share - Diluted, Continuing operations (in dollars per share) | $ 0.67 | $ 0.56 | $ 1.79 | $ 1.38 |
Net income per common share - Diluted, Discontinued operations, net of income taxes (in dollars per share) | 0.01 | 0 | 0.02 | 0 |
Net income per common share - Diluted (in dollars per share) | $ 0.68 | $ 0.56 | $ 1.80 | $ 1.38 |
Weighted average common shares outstanding - Diluted (in shares) | 625.8 | 616.4 | 624.6 | 612.5 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
Condensed Consolidated Statements of Income | ||
Income taxes on income from discontinued operations attributable to Amphenol Corporation | $ 1.5 | $ 1.8 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Condensed Consolidated Statements of Comprehensive Income | ||||
Net income from continuing operations | $ 421.7 | $ 349.5 | $ 1,122.4 | $ 853.1 |
Add: Income from discontinued operations attributable to Amphenol Corporation, net of income taxes | 7.7 | 0 | 10.3 | 0 |
Net income before allocation to noncontrolling interests | 429.4 | 349.5 | 1,132.7 | 853.1 |
Total other comprehensive (loss) income, net of tax: | ||||
Foreign currency translation adjustments | (39.7) | 102.9 | (72.2) | 28.7 |
Unrealized gain (loss) on hedging activities | (0.5) | 0.4 | 0.4 | (0.2) |
Pension and postretirement benefit plan adjustment, net of tax of ($1.6) and ($4.9) for 2021, and ($1.7) and ($5.0) for 2020, respectively | 5.1 | 5.2 | 15.3 | 15.5 |
Total other comprehensive income (loss), net of tax | (35.1) | 108.5 | (56.5) | 44 |
Total comprehensive income | 394.3 | 458 | 1,076.2 | 897.1 |
Less: Comprehensive income attributable to noncontrolling interests | (3) | (5.2) | (7.8) | (8.2) |
Comprehensive income attributable to Amphenol Corporation | $ 391.3 | $ 452.8 | $ 1,068.4 | $ 888.9 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Condensed Consolidated Statements of Comprehensive Income | ||||
Pension and postretirement benefit plan adjustment, tax | $ (1.6) | $ (1.7) | $ (4.9) | $ (5) |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flow - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Cash from operating activities: | |||||
Net income from continuing operations | $ 421.7 | $ 349.5 | $ 1,122.4 | $ 853.1 | |
Adjustments to reconcile net income from continuing operations to cash provided by operating activities from continuing operations: | |||||
Depreciation and amortization | 274.5 | 218 | |||
Stock-based compensation expense | 60.2 | 51 | |||
Deferred income tax provision (benefit) | 24.9 | (5.8) | |||
Net change in components of working capital | (414.1) | 38.6 | |||
Net change in other long-term assets and liabilities | (7.5) | (3.9) | |||
Net cash provided by operating activities from continuing operations | 1,060.4 | 1,151 | |||
Net cash provided by operating activities from discontinued operations | 9.1 | 0 | |||
Net cash provided by operating activities | 1,069.5 | 1,151 | |||
Cash from investing activities: | |||||
Capital expenditures | (274.2) | (204.8) | |||
Proceeds from disposals of property, plant and equipment | 2.4 | 10.8 | |||
Purchases of short-term investments | (128) | (89.3) | |||
Sales and maturities of short-term investments | 129.3 | 71.1 | |||
Acquisitions, net of cash acquired | (1,531) | (50.3) | |||
Other | (8.5) | 0 | |||
Net cash used in investing activities from continuing operations | (1,810) | (262.5) | |||
Net cash used in investing activities from discontinued operations | (4.7) | 0 | |||
Net cash used in investing activities | (1,814.7) | (262.5) | |||
Cash from financing activities: | |||||
Proceeds from issuance of senior notes and other long-term debt | 749.9 | 942.3 | |||
Repayments of senior notes and other long-term debt | (616.2) | (402.9) | |||
Borrowings under credit facilities | 0 | 1,567.4 | |||
Repayments under credit facilities | 0 | (1,568.1) | |||
(Repayments) borrowings under commercial paper programs, net | 925 | (385.9) | |||
Payment of costs related to debt financing | (6.1) | (8.7) | |||
Payment of acquisition-related contingent consideration | 0 | (75) | |||
Proceeds from exercise of stock options | 180.9 | 256.6 | |||
Payment of deferred purchase price related to acquisitions | (4.1) | (16.2) | |||
Distributions to and purchases of noncontrolling interests | (11.3) | (11.5) | |||
Purchase of treasury stock | (491) | (459.2) | |||
Dividend payments | (86.6) | (74.6) | (260) | (223) | |
Transfers to discontinued operations | (28.7) | 0 | |||
Net cash provided by (used in) financing activities from continuing operations | 438.4 | (384.2) | |||
Net cash provided by (used in) financing activities from discontinued operations | (0.1) | 0 | |||
Net cash provided by (used in) financing activities | 438.3 | (384.2) | |||
Effect of exchange rate changes on cash and cash equivalents | (15.5) | 25 | |||
Net (decrease) increase in cash and cash equivalents | (322.4) | 529.3 | |||
Cash and cash equivalents balance, beginning of period | 1,702 | 891.2 | $ 891.2 | ||
Cash and cash equivalents balance, end of period | 1,379.6 | 1,420.5 | 1,379.6 | 1,420.5 | $ 1,702 |
Less: Cash and cash equivalents included in Current assets held for sale, end of period | 111.5 | 0 | 111.5 | 0 | |
Cash and cash equivalents balance of continuing operations, end of period | $ 1,268.1 | $ 1,420.5 | 1,268.1 | 1,420.5 | |
Cash paid for: | |||||
Interest | 78.8 | 74.5 | |||
Income taxes, net | $ 305.4 | $ 262.9 |
Basis of Presentation and Princ
Basis of Presentation and Principles of Consolidation | 9 Months Ended |
Sep. 30, 2021 | |
Basis of Presentation and Principles of Consolidation | |
Basis of Presentation and Principles of Consolidation | Note 1—Basis of Presentation and Principles of Consolidation The Condensed Consolidated Balance Sheets as of September 30, 2021 and December 31, 2020, the related Condensed Consolidated Statements of Income and Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2021 and 2020, and the related Condensed Consolidated Statements of Cash Flow for the nine months ended September 30, 2021 and 2020, include the accounts of Amphenol Corporation and its subsidiaries (“Amphenol,” the “Company,” “we,” “our,” or “us”). All material intercompany balances and transactions have been eliminated in consolidation. The condensed consolidated financial statements included herein are unaudited. In the opinion of management, the condensed consolidated financial statements reflect all adjustments, including normal recurring adjustments considered necessary for a fair presentation of the results, in conformity with accounting principles generally accepted in the United States of America. The results of operations for the three and nine months ended September 30, 2021 are not necessarily indicative of the results to be expected for the full year. These condensed consolidated financial statements and the related notes should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020 (the “2020 Annual Report”). Stock Split On January 27, 2021, the Company announced that its Board of Directors approved a two -for-one split of the Company’s Common Stock. The stock split was effected in the form of a stock dividend paid to shareholders of record as of the close of business on February 16, 2021. The additional shares were distributed on March 4, 2021, and the Company’s Common Stock began trading on a split-adjusted basis on March 5, 2021. As a result of the stock split, shareholders received one additional share of Amphenol Common Stock, par value, for each share held as of the record date. All current and prior year data presented in the accompanying Condensed Consolidated Financial Statements and notes thereto in this Form 10-Q, including but not limited to, number of shares and per share information, stock-based compensation data including stock options and restricted shares and related per share data, basic and diluted earnings per share, and dividends per share amounts, have been adjusted to reflect the effect of the stock split. As a result of the stock split, certain prior period amounts have been reclassified to conform to the current period presentation in the Condensed Consolidated Financial Statements and accompanying notes herein. The impact to the Condensed Consolidated Balance Sheets, as well as the rollforward of consolidated changes in equity included in Note 7 herein, was an increase of $0.3 to Common Stock, with an offsetting decrease in Additional paid-in capital, which has been retroactively adjusted for all periods presented. While the stock split did not change the number of authorized common shares of the Company, in May 2021, the Company’s stockholders approved an amendment to the Company’s certificate of incorporation to increase the number of authorized shares of Common Stock, which amendment was filed and became effective on May 21, 2021. Refer to Note 7 herein for further details related to the increase in the number of shares of Common Stock authorized for issuance as a result of this amendment. Discontinued Operations The Company reports an operation’s assets and liabilities separately as “held for sale” when (1) management, having the authority to approve the action, commits to a plan to sell the discontinued operation, the plan of which is unlikely to have any significant changes or to be withdrawn, (2) the completed sale is probable within one year and (3) an active program to locate a buyer has been initiated with the operation actively marketed for sale at a price that is reasonable in relation to its current fair value and for immediate sale in its present condition. In December 2020, the Company signed a definitive agreement to acquire MTS Systems Corporation (Nasdaq: MTSC) (“MTS”) as more fully discussed in Note 11 herein. On January 19, 2021, the Company entered into a definitive agreement to sell the MTS Test & Simulation (“MTS T&S”) business to Illinois Tool Works Inc. (NYSE: ITW). The Company closed on the acquisition of MTS on April 7, 2021. The Company expects to close on the sale of the MTS T&S business as soon as all required regulatory approvals have been received and other customary closing conditions have been satisfied, which the Company expects to be within the one-year period outlined above. The Company concluded that the MTS T&S business met the “held for sale” criteria upon the closing of the MTS acquisition and, as such, the assets and liabilities are presented as held for sale and classified as current as of September 30, 2021 in the Condensed Consolidated Balance Sheets and accompanying Notes herein. The financial results and cash flows associated with the MTS T&S business are also accounted for as discontinued operations in the accompanying Condensed Consolidated Statements of Income and Statements of Cash Flow, respectively, for all current year periods presented. The comprehensive income associated with discontinued operations is not material and has not been separately presented in the Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2021. Refer to Note 11 herein for further information related to the acquisition of MTS, along with Note 12 herein for further discussion of the Company’s discontinued operations associated with the MTS T&S business including the Company’s planned divestiture thereof. |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2021 | |
New Accounting Pronouncements | |
New Accounting Pronouncements | Note 2—New Accounting Pronouncements Recently Adopted Accounting Standards and Final SEC Rules In December 2019, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which simplified income tax accounting in various areas. The Company evaluated ASU 2019-12 and adopted the standard on January 1, 2021. The adoption of ASU 2019-12 did not have a material impact on our consolidated financial statements. In May 2020, the Securities and Exchange Commission (the “SEC”) issued a new rule regarding the financial statement requirements for acquisitions and dispositions of a business, which included, among other things, amending (i) certain criteria in the significance tests for acquired or to-be-acquired businesses, (ii) related pro forma financial information requirements, including its form and content, and (iii) related disclosure requirements, including the number of acquiree financial statement periods required to be presented in SEC filings. The final rule was effective for fiscal years beginning after December 31, 2020, with early application permitted. The Company evaluated this SEC final rule, which we adopted on January 1, 2021. To date, the final rule has not had a material impact on our condensed consolidated financial statements. Its impact on any future SEC filings will be dependent on the size of future business combinations and/or divestitures. Recently Issued Accounting Standards and Final SEC Rules Not Yet Adopted The United Kingdom’s Financial Conduct Authority (the “FCA”), which regulates the London Interbank Offered Rate (“LIBOR”), announced in July 2017 its intent to phase out the use of LIBOR by the end of 2021. In December 2020, the ICE Benchmark Administration published a consultation on its intention to extend the publication of certain U.S. dollar LIBOR (“USD LIBOR”) rates until June 30, 2023. Subsequently in March 2021, the FCA announced some USD LIBOR tenors (overnight, 1-month, 3-month, 6-month and 12-month) will continue to be published until June 30, 2023. ons. Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”), which provides optional expedients and exceptions for applying accounting principles generally accepted in the United States (“U.S. GAAP”) to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued by reference rate reform, and addresses operational issues likely to arise in modifying contracts to replace discontinued reference rates with new rates. ASU 2020-04 is effective as of March 12, 2020 through December 31, 2022. In January 2021, the FASB also issued ASU 2021-01 Reference Rate Reform (Topic 848): Scope , which permits entities to elect certain optional expedients and exceptions when accounting for derivatives and certain hedging relationships affected by changes in interest rates and the transition. The Company is evaluating the potential impact of the replacement of LIBOR from both a risk management and financial reporting perspective. Our current portfolio of debt and financial instruments tied to LIBOR consists primarily of our Revolving Credit Facility (as defined below), which had no outstanding borrowings as of September 30, 2021. We do not currently believe that this transition will have a material impact on our financial condition, results of operations or cash flows. In November 2020, the SEC issued a new rule that modernizes and simplifies various aspects and financial disclosure requirements in Regulation S-K, specifically related to Item 301 “Selected Financial Data” Item 302 “Supplementary Financial Information” and Item 303 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2021 | |
Inventories | |
Inventories | Note 3—Inventories Inventories consist of: September 30, December 31, 2021 2020 Raw materials and supplies $ 815.2 $ 587.4 Work in process 535.0 410.7 Finished goods 602.3 464.1 $ 1,952.5 $ 1,462.2 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt | |
Debt | Note 4—Debt The Company’s debt (net of any unamortized discount) consists of the following: September 30, 2021 December 31, 2020 Carrying Approximate Carrying Approximate Amount Fair Value Amount Fair Value Revolving Credit Facility $ — $ — $ — $ — U.S. Commercial Paper Program 924.3 924.3 — — Euro Commercial Paper Program — — — — 3.125% Senior Notes due September 2021 — — 227.7 231.6 4.00% Senior Notes due February 2022 295.0 295.8 294.9 303.6 3.20% Senior Notes due April 2024 349.9 369.6 349.8 378.1 2.050% Senior Notes due March 2025 399.5 412.4 399.4 420.7 0.750% Euro Senior Notes due May 2026 577.8 597.5 608.4 633.6 2.000% Euro Senior Notes due October 2028 577.7 649.1 608.4 694.9 4.350% Senior Notes due June 2029 499.6 579.2 499.6 608.4 2.800% Senior Notes due February 2030 899.4 945.6 899.4 987.8 2.200% Senior Notes due September 2031 747.3 742.9 — — Other debt 7.6 7.6 6.7 6.7 Less: unamortized deferred debt issuance costs (29.4) — (27.8) — Total debt 5,248.7 5,524.0 3,866.5 4,265.4 Less: current portion 298.7 299.5 230.3 234.2 Total long-term debt $ 4,950.0 $ 5,224.5 $ 3,636.2 $ 4,031.2 Revolving Credit Facility The Company has a $2,500.0 unsecured credit facility (the “Revolving Credit Facility”), which matures January 2024 and gives the Company the ability to borrow, in various currencies, at a spread over LIBOR. The Company may utilize the Revolving Credit Facility for general corporate purposes. At September 30, 2021 and December 31, 2020, there were outstanding borrowings under the Revolving Credit Facility. The carrying value of any borrowings under the Revolving Credit Facility would approximate their fair value due primarily to their market interest rates and would be classified as Level 2 in the fair value hierarchy (Note 5). Any outstanding borrowings under the Revolving Credit Facility are classified as long-term debt in the accompanying Condensed Consolidated Balance Sheets. The Revolving Credit Facility requires payment of certain annual agency and commitment fees and requires that the Company satisfy certain financial covenants. Commercial Paper Programs The Company has a commercial paper program pursuant to which the Company may issue short-term unsecured commercial paper notes (the “USCP Notes”) in one or more private placements in the United States (the “U.S. Commercial Paper Program”). The maturities of the USCP Notes vary, but may not exceed 397 days from the date of issue. The USCP Notes are sold under customary terms in the commercial paper market and may be issued at par or a discount therefrom, and bear varying interest rates on a fixed or floating basis. T . On April 7, 2021, a combination of borrowings under the U.S. Commercial Paper Program and cash and cash equivalents on hand were used to fund the acquisition of MTS. Refer to Note 11 herein for further discussion of the acquisition of MTS. In addition, in the third quarter of 2021, the Company used borrowings under the U.S. Commercial Paper Program to redeem its unsecured aggregate principal amount was outstanding. As of September 30, 2021, the amount of USCP Notes outstanding was $924.3, with a weighted average interest rate of 0.19% . The Company and one of its wholly owned European subsidiaries (collectively, the “Euro Issuer”) also has a commercial paper program (the “Euro Commercial Paper Program” and, together with the U.S. Commercial Paper Program, the “Commercial Paper Programs”) pursuant to which the Euro Issuer may issue short-term unsecured commercial paper notes (the “ECP Notes” and, together with the USCP Notes, “Commercial Paper”), which are guaranteed by the Company and are to be issued outside of the United States. The maturities of the ECP Notes will vary, but may not exceed 183 days from the date of issue. The ECP Notes are sold under customary terms in the commercial paper market and may be issued at par or a discount therefrom or a premium thereto and bear varying interest rates on a fixed or floating basis. The ECP Notes may be issued in Euros, Sterling, U.S. dollars or other currencies. T . As of September 30, 2021, there were Amounts available under the Commercial Paper Programs may be borrowed, repaid and re-borrowed from time to time. in the aggregate. The Commercial Paper Programs are rated A-2 by Standard & Poor’s and P-2 by Moody’s and are currently backstopped by the Revolving Credit Facility, as amounts undrawn under the Company’s Revolving Credit Facility are available to repay Commercial Paper, if necessary. Net proceeds of the issuances of Commercial Paper are expected to be used for general corporate purposes. The Commercial Paper is classified as long-term debt in the accompanying Condensed Consolidated Balance Sheets since the Company has the intent and ability to refinance the Commercial Paper on a long-term basis using the Company’s Revolving Credit Facility. The Commercial Paper is actively traded and is therefore classified as Level 1 in the fair value hierarchy (Note 5). The carrying value of Commercial Paper borrowings approximates their fair value. U.S. Senior Notes On September 14, 2021, the Company issued $750.0 principal amount of unsecured 2.200% Senior Notes due September 15, 2031 at 99.634% of face value (the “2031 Senior Notes”). The 2031 Senior Notes are unsecured and rank equally in right of payment with the Company’s other unsecured senior indebtedness. Interest on the 2031 Senior Notes is payable semiannually on March 15 and September 15 of each year, commencing on March 15, 2022. Prior to June 15, 2031, the Company may, at its option, redeem some or all of the 2031 Senior Notes at any time by paying the redemption price (which may include a make-whole premium), plus accrued and unpaid interest, if any, to, but not including, the date of redemption. If redeemed on or after June 15, 2031, the Company may, at its option, redeem some or all of the 2031 Senior Notes at any time by paying the redemption price equal to of the principal amount thereof, plus accrued and unpaid interest, if any, to, but not including, the date of redemption. The Company used the net proceeds from the 2031 Senior Notes to repay certain outstanding borrowings under the U.S. Commercial Paper Program. On February 20, 2020, the Company issued $400.0 principal amount of unsecured 2.050% Senior Notes due March 1, 2025 at 99.829% of face value (the “2025 Senior Notes”). The 2025 Senior Notes are unsecured and rank equally in right of payment with the Company’s other unsecured senior indebtedness. Interest on the 2025 Senior Notes is payable semiannually on March 1 and September 1 of each year, commencing on September 1, 2020. Prior to February 1, 2025, the Company may, at its option, redeem some or all of the 2025 Senior Notes at any time by paying the redemption price (which may include a make-whole premium), plus accrued and unpaid interest, if any, to, but not including, the date of redemption. If redeemed on or after February 1, 2025, the Company may, at its option, redeem some or all of the 2025 Senior Notes at any time by paying the redemption price equal to All of the Company’s outstanding senior notes in the United States (the “U.S. Senior Notes”) are unsecured and rank equally in right of payment with the Company’s other unsecured senior indebtedness. Interest on each series of U.S. Senior Notes is payable semiannually. The Company may, at its option, redeem some or all of any series of U.S. Senior Notes at any time subject to certain terms and conditions, which include paying 100 % of the principal amount, plus accrued and unpaid interest, if any, to the date of redemption, and, with certain exceptions, a make-whole premium. The fair value of each series of U.S. Senior Notes is based on recent bid prices in an active market and is therefore classified as Level 1 in the fair value hierarchy (Note 5). The remaining principal amount outstanding associated with the Company’s 4.00 % Senior Notes (the “2022 Senior Notes”) due in February 2022 is recorded, net of the related unamortized discount and debt issuance costs, within Current portion of long-term debt in the accompanying Condensed Consolidated Balance Sheets as of September 30, 2021. On October 1, 2021, the Company issued a notice of full redemption to the holders of the 2022 Senior Notes, which will be redeemed at par value on November 1, 2021. The U.S. Senior Notes contain certain financial and non-financial covenants. At September 30, 2021, the Company was in compliance with the financial covenants under its U.S. Senior Notes. Euro Senior Notes On May 4, 2020, the Euro Issuer issued €500.0 (approximately $545.4 at date of issuance) principal amount of unsecured 0.750% Senior Notes due May 4, 2026 at 99.563% of face value (the “2026 Euro Notes” or the “0.750% Euro Senior Notes”, collectively with the 2.000% Euro Senior Notes due October 2028, the “Euro Notes”, and the Euro Notes collectively with the U.S. Senior Notes, the “Senior Notes”). The 2026 Euro Notes are unsecured and rank equally in right of payment with the Euro Issuer’s other unsecured senior indebtedness, and are fully and unconditionally guaranteed on a senior unsecured basis by the Company. Interest on the 2026 Euro Notes is payable annually on May 4 of each year, commencing on May 4, 2021. Prior to February 4, 2026, the Company may, at its option, redeem some or all of the 2026 Euro Notes at any time by paying the redemption price (which may include a make-whole premium), plus accrued and unpaid interest, if any, to, but not including, the date of redemption. If redeemed on or after February 4, 2026, the Company may, at its option, redeem some or all of the 2026 Euro Notes at any time by paying the redemption price equal to of the principal amount thereof, plus accrued and unpaid interest, if any, to, but not including, the date of redemption. The Company used the net proceeds from the 2026 Euro Notes to repay amounts outstanding under the Revolving Credit Facility. The Company’s Euro Notes are unsecured and rank equally in right of payment with the Euro Issuer’s other unsecured senior indebtedness, and are fully and unconditionally guaranteed on a senior unsecured basis by the Company. Interest on each series of Euro Notes is payable annually. The Company may, at its option, redeem some or all of any series of Euro Notes at any time subject to certain terms and conditions, which include paying 100% of the principal amount, plus accrued and unpaid interest, if any, to, but not including, the date of redemption, and, with certain exceptions, a make-whole premium. The fair value of each series of Euro Notes is based on recent bid prices in an active market and is therefore classified as Level 1 in the fair value hierarchy (Note 5). The Euro Notes contain certain financial and non-financial covenants. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Measurements | |
Fair Value Measurements | Note 5—Fair Value Measurements Fair value is determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. These requirements establish market or observable inputs as the preferred source of values. Assumptions based on hypothetical transactions are used in the absence of market inputs. The Company does not have any non-financial instruments accounted for at fair value on a recurring basis. The valuation techniques required are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. These two types of inputs create the following fair value hierarchy: Level 1 Quoted prices for identical instruments in active markets. Level 2 Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3 Significant inputs to the valuation model are unobservable. The Company believes that the assets or liabilities currently subject to such standards with fair value disclosure requirements are primarily debt instruments, pension plan assets, short-term investments, and derivative instruments. Each of these assets and liabilities is discussed below, with the exception of debt instruments and pension plan assets, which are covered in Note 4 and Note 10, respectively, herein, in addition to the Notes to Consolidated Financial Statements in the 2020 Annual Report. Substantially all of the Company’s short-term investments consist of certificates of deposit with original maturities of twelve months or less and as such, are considered as Level 1 in the fair value hierarchy as they are traded in active markets for identical assets. The carrying amounts of these instruments, the majority of which are in non-U.S. bank accounts, approximate their fair value. The Company’s derivative instruments primarily consist of foreign exchange forward contracts, which are valued using bank quotations based on market observable inputs such as forward and spot rates and are therefore classified as Level 2 in the fair value hierarchy. The impact of the credit risk related to these financial assets is immaterial. The fair values of the Company’s financial and non-financial assets and liabilities subject to such standards as of September 30, 2021 and December 31, 2020 are as follows: Fair Value Measurements Quoted Prices in Significant Significant Active Markets Observable Unobservable for Identical Inputs Inputs Total Assets (Level 1) (Level 2) (Level 3) September 30, 2021: Short-term investments $ 34.4 $ 34.4 $ — $ — Forward contracts (5.4) — (5.4) — Total $ 29.0 $ 34.4 $ (5.4) $ — December 31, 2020: Short-term investments $ 36.1 $ 36.1 $ — $ — Forward contracts (2.7) — (2.7) — Total $ 33.4 $ 36.1 $ (2.7) $ — As of September 30, 2021, the fair value of such forward contracts in the table above consisted of (i) two outstanding foreign exchange forward contracts accounted for as cash flow hedges, with each expiring within one year , (ii) various outstanding foreign exchange forward contracts accounted for as net investment hedges and (iii) various outstanding foreign exchange forward contracts that are not designated as hedging instruments. The amounts recognized in Accumulated other comprehensive income (loss) associated with foreign exchange forward contracts and the amounts reclassified from Accumulated other comprehensive income (loss) to foreign exchange gain (loss), included in Cost of sales in the accompanying Condensed Consolidated Statements of Income during the three and nine months ended September 30, 2021 and 2020, were not material. The fair values of the Company’s forward contracts are recorded within Prepaid expenses and other current assets, Other long-term assets, Other accrued expenses and Other long-term liabilities in the accompanying Condensed Consolidated Balance Sheets, depending on their value and remaining contractual period. As further discussed in Note 12 herein, the MTS T&S business met the held for sale criteria upon the acquisition of MTS on April 7, 2021. As a result, the disposal group was measured at fair value less costs to sell, which is considered a Level 3 fair value measurement based on the transaction’s expected consideration. The Company reassessed the fair value of these assets held for sale and liabilities held for sale as of September 30, 2021 and noted that the carrying value of the disposal group did not exceed its fair value less costs to sell. With the exception of the fair value of the assets acquired and liabilities assumed in connection with acquisition accounting as well as the assets held for sale and liabilities held for sale discussed above, the Company does not have any other significant financial or non-financial assets and liabilities that are measured at fair value on a non-recurring basis. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Taxes | |
Income Taxes | Note 6—Income Taxes Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Provision for income taxes $ (120.5) $ (99.3) $ (302.8) $ (213.3) Effective tax rate 22.2 % 22.1 % 21.2 % 20.0 % For the three months ended September 30, 2021 and 2020, stock option exercise activity had the impact of decreasing our Provision for income taxes by $12.3 and $10.7, respectively, and decreasing our effective tax rate by 230 basis points and 240 basis points, respectively, due to the recognition of excess tax benefits within Provision for income taxes in the accompanying Condensed Consolidated Statements of Income. For the nine months ended September 30, 2021 and 2020, stock option exercise activity had the impact of decreasing our Provision for income taxes by $34.3 and $28.1, respectively, and decreasing our effective tax rate by 240 basis points and 260 basis points, respectively. For the nine months ended September 30, 2021, the effective tax rate includes a discrete tax benefit of $14.9 related to the settlement of uncertain tax positions in certain non-U.S. jurisdictions, which had the effect of decreasing the effective tax rate by 100 basis points, as well as the impact of acquisition-related expenses, which had the effect of increasing the effective tax rate by approximately 20 basis points. For the nine months ended September 30, 2020, the effective tax rate also included a discrete tax benefit related to the settlements of refund claims in a non-U.S. jurisdiction and the resulting adjustments to deferred taxes, which had the impact of decreasing our Provision for income taxes and effective tax rate by $19.9 and 190 basis points, respectively. On December 22, 2017, the United States federal government enacted the Tax Cuts and Jobs Act (“Tax Act”), marking a change from a worldwide tax system to a modified territorial tax system in the United States. As part of this change, the Tax Act, among other changes, provides for a transition tax (“Transition Tax”) related to the deemed repatriation of the accumulated unremitted earnings and profits of the Company’s foreign subsidiaries. The Company paid its fourth annual installment of the Transition Tax, net of applicable tax credits and deductions, in the second quarter of 2021, and will pay the balance of the Transition Tax, net of applicable tax credits and deductions, over the remainder of the eight-year period ending 2025, as permitted under the Tax Act. The current and long-term portions of the Transition Tax are recorded in Accrued income taxes and Other long-term liabilities, respectively, on the Condensed Consolidated Balance Sheets as of September 30, 2021 and December 31, 2020. The Company operates in the U.S. and numerous foreign taxable jurisdictions, and at any point in time has numerous audits underway at various stages of completion. With few exceptions, the Company is subject to income tax examinations by tax authorities for the years 2017 and after. The Company is generally not able to precisely estimate the ultimate settlement amounts or timing until the close of an audit. The Company evaluates its tax positions and establishes liabilities for uncertain tax positions that may be challenged by tax authorities and may not be fully sustained, despite the Company’s belief that the underlying tax positions are fully supportable. As of . Unrecognized tax benefits are reviewed on an ongoing basis and are adjusted for changing facts and circumstances, including the progress of tax audits and the closing of statutes of limitations. Based on information currently available, management anticipates that over the next twelve-month period, audit activity could be completed and statutes of limitations may close relating to existing unrecognized tax benefits of approximately $6.8 |
Shareholders' Equity and Noncon
Shareholders' Equity and Noncontrolling Interests | 9 Months Ended |
Sep. 30, 2021 | |
Shareholders' Equity and Noncontrolling Interests | |
Shareholders' Equity and Noncontrolling Interests | Note 7—Shareholders’ Equity and Noncontrolling Interests Net income from continuing operations attributable to noncontrolling interests is classified below net income from continuing operations. Earnings per share is determined after the impact of the noncontrolling interests’ share in net income of the Company. In addition, the equity attributable to noncontrolling interests is presented as a separate caption within equity. A rollforward of consolidated changes in equity for the three months ended September 30, 2021 is as follows: Amphenol Corporation Shareholders Accumulated Common Stock Treasury Stock Other Shares Shares Additional Retained Comprehensive Noncontrolling Total (in millions) Amount (in millions) Amount Paid-In Capital Earnings Loss Interests Equity Balance as of June 30, 2021 599.3 $ 0.6 (1.8) $ (100.1) $ 2,198.9 $ 3,916.4 $ (300.3) $ 62.8 $ 5,778.3 Net income 426.5 2.9 429.4 Other comprehensive income (loss) (35.2) 0.1 (35.1) Distributions to shareholders of noncontrolling interests (3.0) (3.0) Purchase of treasury stock (2.3) (170.9) (170.9) Retirement of treasury stock (2.3) — 2.3 170.9 (170.9) — Stock options exercised 2.2 — 0.2 10.8 69.4 (4.7) 75.5 Dividends declared ($0.145 per common share) (86.7) (86.7) Stock-based compensation expense 21.2 21.2 Balance as of September 30, 2021 599.2 $ 0.6 (1.6) $ (89.3) $ 2,289.5 $ 4,080.6 $ (335.5) $ 62.8 $ 6,008.7 A rollforward of consolidated changes in equity for the nine months ended September 30, 2021 is as follows: Amphenol Corporation Shareholders Accumulated Common Stock Treasury Stock Other Shares Shares Additional Retained Comprehensive Noncontrolling Total (in millions) Amount (in millions) Amount Paid-In Capital Earnings Loss Interests Equity Balance as of December 31, 2020 600.7 $ 0.6 (2.0) $ (111.1) $ 2,068.1 $ 3,705.4 $ (278.1) $ 67.0 $ 5,451.9 Net income 1,125.8 6.9 1,132.7 Other comprehensive income (loss) (57.4) 0.9 (56.5) Acquisitions resulting in noncontrolling interest 1.8 1.8 Purchase of noncontrolling interest 2.5 (7.3) (4.8) Distributions to shareholders of noncontrolling interests (6.5) (6.5) Purchase of treasury stock (7.2) (491.0) (491.0) Retirement of treasury stock (6.9) — 6.9 471.2 (471.2) — Stock options exercised 5.4 — 0.7 41.6 158.7 (19.5) 180.8 Dividends declared ($0.435 per common share) (259.9) (259.9) Stock-based compensation expense 60.2 60.2 Balance as of September 30, 2021 599.2 $ 0.6 (1.6) $ (89.3) $ 2,289.5 $ 4,080.6 $ (335.5) $ 62.8 $ 6,008.7 A rollforward of consolidated changes in equity for the three months ended September 30, 2020 is as follows: Amphenol Corporation Shareholders Accumulated Common Stock Treasury Stock Other Shares Shares Additional Retained Comprehensive Noncontrolling Total (in millions) Amount (in millions) Amount Paid-In Capital Earnings Loss Interests Equity Balance as of June 30, 2020 597.1 $ 0.6 (0.5) $ (21.0) $ 1,834.2 $ 3,419.4 $ (494.6) $ 61.7 $ 4,800.3 Net income 346.6 2.9 349.5 Other comprehensive income (loss) 106.2 2.3 108.5 Distributions to shareholders of noncontrolling interests (1.9) (1.9) Purchase of treasury stock (3.7) (201.9) (201.9) Retirement of treasury stock (1.7) — 1.7 91.6 (91.6) — Stock options exercised 3.3 — 0.7 34.4 84.6 (12.6) 106.4 Dividends declared ($0.125 per common share) (74.7) (74.7) Stock-based compensation expense 19.0 19.0 Balance as of September 30, 2020 598.7 $ 0.6 (1.8) $ (96.9) $ 1,937.8 $ 3,587.1 $ (388.4) $ 65.0 $ 5,105.2 A rollforward of consolidated changes in equity for the nine months ended September 30, 2020 is as follows: Amphenol Corporation Shareholders Accumulated Common Stock Treasury Stock Other Shares Shares Additional Retained Comprehensive Noncontrolling Total (in millions) Amount (in millions) Amount Paid-In Capital Earnings Loss Interests Equity Balance as of December 31, 2019 597.4 $ 0.6 (1.6) $ (70.8) $ 1,683.0 $ 3,348.4 $ (430.9) $ 65.9 $ 4,596.2 Cumulative effect of adoption of credit loss standard (ASU 2016-13) (3.8) (3.8) Net income 846.4 6.7 853.1 Other comprehensive income (loss) 42.5 1.5 44.0 Acquisitions resulting in noncontrolling interest 0.3 0.3 Purchase of noncontrolling interest (2.1) (5.2) (7.3) Distributions to shareholders of noncontrolling interests (4.2) (4.2) Purchase of treasury stock (9.1) (459.2) (459.2) Retirement of treasury stock (7.1) — 7.1 348.9 (348.9) — Stock options exercised 8.4 — 1.8 84.2 205.9 (31.8) 258.3 Dividends declared ($0.375 per common share) (223.2) (223.2) Stock-based compensation expense 51.0 51.0 Balance as of September 30, 2020 598.7 $ 0.6 (1.8) $ (96.9) $ 1,937.8 $ 3,587.1 $ (388.4) $ 65.0 $ 5,105.2 Authorized Shares for Issuance On May 19, 2021, the Company’s stockholders approved an amendment to the Company’s certificate of incorporation, which increased the total number of shares of Class A Common Stock, $0.001 par value (“Common Stock”) that the Company is authorized to issue to 2,000,000,000 shares, an increase of 1,000,000,000 shares from the amount previously authorized. The amendment was filed and became effective on May 21, 2021. Stock Repurchase Programs On April 24, 2018, the Company’s Board of Directors authorized a stock repurchase program under which the Company could purchase up to $2,000.0 of the Company’s Common Stock during the three-year period ending April 24, 2021 (the “2018 Stock Repurchase Program”) in accordance with the requirements of Rule 10b-18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). During the first nine months of 2021, the Company repurchased under the 2018 Stock Repurchase Program. As a result of these purchases, the Company completed all purchases authorized under the 2018 Stock Repurchase Program and, therefore, the 2018 Stock Repurchase Program has terminated. Of the total repurchases made during the first nine months of 2021, 0.3 million shares, or $19.8, were retained in Treasury stock at the time of repurchase; the remaining 2.8 million shares, or $184.0 , were retired by the Company. During the three and nine months ended September 30, 2020, the Company repurchased 3.7 million and 9.1 million shares of its Common Stock for $201.9 and $459.2 , respectively, under the 2018 Stock Repurchase Program. Of the total repurchases made during the first nine months of 2020, 2.0 million shares, or $110.3, were retained in Treasury stock at the time of repurchase; the remaining 7.1 million shares, or $348.9, were retired by the Company. On April 27, 2021, the Company’s Board of Directors authorized a new stock repurchase program under which the Company may purchase up to $2,000.0 of the Company’s Common Stock during the three-year period ending April 27, 2024 (the “2021 Stock Repurchase Program”) in accordance with the requirements of Rule 10b-18 of the Exchange Act. During the three and nine months ended September 30, 2021, the Company repurchased 2.3 million and 4.1 million shares of its Common Stock for $170.9 and $287.2 , respectively, under the 2021 Stock Repurchase Program. All of the shares repurchased under the 2021 Stock Repurchase Program during the nine months ended September 30, 2021 have been or will be retired by the Company. From October 1, 2021 to October 26, 2021, the Company repurchased 0.6 million additional shares of its Common Stock for $46.1 under the 2021 Stock Repurchase Program, and has remaining authorization to purchase up to $1,666.6 of its Common Stock under the 2021 Stock Repurchase Program. The price and timing of any future purchases under the 2021 Stock Repurchase Program will depend on a number of factors such as levels of cash generation from operations, the volume of stock option exercises by employees, cash requirements for acquisitions, dividends paid, economic and market conditions and the price of the Company’s Common Stock. Dividends Contingent upon declaration by the Company’s Board of Directors, the Company pays a quarterly dividend on shares of its Common Stock. The following table summarizes the dividends declared and paid for the three and nine months ended September 30, 2021 and 2020: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Dividends declared $ 86.7 $ 74.7 $ 259.9 $ 223.2 Dividends paid (including those declared in the prior year) 86.6 74.6 260.0 223.0 On October 20, 2020, the Company’s Board of Directors approved an increase to its quarterly dividend rate from $0.125 per share to $0.145 per share effective with dividends declared in the fourth quarter of 2020, and then on October 26, 2021, approved a further increase to its quarterly dividend rate from $0.145 per share to $0.20 per share effective with dividends declared in the fourth quarter of 2021, contingent upon declaration by the Company’s Board of Directors. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Stock-Based Compensation | |
Stock-Based Compensation | Note 8—Stock-Based Compensation For the three months ended September 30, 2021 and 2020, the Company’s Income from continuing operations before income taxes was reduced for stock-based compensation expense of $21.2 and $19.0 , respectively. In addition, for the three months ended September 30, 2021 and 2020, the Company recognized aggregate income tax benefits of $14.0 and $12.7 , respectively, in Provision for income taxes in the accompanying Condensed Consolidated Statements of Income associated with stock-based compensation. These aggregate income tax benefits during the three months ended September 30, 2021 and 2020 include excess tax benefits of $12.3 from option exercises. For the nine months ended September 30, 2021 and 2020, the Company’s Income from continuing operations before income taxes was reduced for stock-based compensation expense of $60.2 and $51.0 , respectively. In addition, for the nine months ended September 30, 2021 and 2020, the Company recognized aggregate income tax benefits of $40.4 and $33.8 , respectively, in Provision for income taxes in the accompanying Condensed Consolidated Statements of Income associated with stock-based compensation. These aggregate income tax benefits during the nine months ended September 30, 2021 and 2020 include excess tax benefits of $34.3 and $28.1, respectively, from option exercises. The impact associated with recognizing excess tax benefits from option exercises in the provision for income taxes on our consolidated financial statements could result in significant fluctuations in our effective tax rate in the future, since the provision for income taxes will be impacted by the timing and intrinsic value of future stock-based compensation award exercises. Stock-based compensation expense includes the estimated effects of forfeitures, which are adjusted over the requisite service period to the extent actual forfeitures differ or are expected to differ from such estimates. Changes in estimated forfeitures are recognized in the period of change and impact the amount of expense to be recognized in future periods. The expense incurred for stock-based compensation plans is included in Selling, general and administrative expenses in the accompanying Condensed Consolidated Statements of Income. Stock Options In May 2017, the Company adopted the 2017 Stock Purchase and Option Plan for Key Employees of Amphenol and Subsidiaries (the “2017 Employee Option Plan”), which provided for the issuance of 60,000,000 shares. In March 2021, the Company’s Board of Directors authorized and approved the Amended and Restated 2017 Stock Purchase and Option Plan for Key Employees of Amphenol and Subsidiaries (the “Amended 2017 Employee Option Plan” and, together with the 2017 Employee Option Plan, the “2017 Option Plan”), which among other things, increased the number of shares reserved for issuance under the plan by 40,000,000 shares. The Amended 2017 Employee Option Plan was approved by the Company’s shareholders and became effective on May 19, 2021. As of September 30, 2021, there were Option Plan. Prior to the approval of the 2017 Employee Option Plan, the Company issued stock options under the 2009 Stock Purchase and Option Plan for Key Employees of Amphenol and Subsidiaries, and its amendment (the “2009 Employee Option Plan”). No additional stock options will be granted under the 2009 Employee Option Plan. Options granted under the 2017 Option Plan and the 2009 Employee Option Plan generally vest ratably over a period of five years from the date of grant and are generally exercisable over a period of ten years from the date of grant. Stock option activity for the three and nine months ended September 30, 2021 was as follows: Weighted Average Aggregate Weighted Remaining Intrinsic Average Contractual Value Options Exercise Price Term (in years) (in millions) Options outstanding at January 1, 2021 67,985,648 $ 37.58 6.79 $ 1,890.4 Options granted 215,080 64.69 Options exercised (757,598) 28.12 Options forfeited (31,160) 42.37 Options outstanding at March 31, 2021 67,411,970 37.77 6.57 1,901.0 Options granted 7,215,100 66.62 Options exercised (2,882,332) 29.14 Options forfeited (46,600) 49.05 Options outstanding at June 30, 2021 71,698,138 41.01 6.77 1,964.3 Options granted 95,400 71.64 Options exercised (2,494,842) 30.30 Options forfeited (200,890) 48.28 Options outstanding at September 30, 2021 69,097,806 $ 41.42 6.60 $ 2,198.0 Vested and non-vested options expected to vest at September 30, 2021 65,684,351 $ 41.03 6.52 $ 2,114.9 Exercisable options at September 30, 2021 37,432,076 $ 34.81 5.33 $ 1,438.1 A summary of the status of the Company’s non-vested options as of September 30, 2021 and changes during the three and nine months then ended is as follows: Weighted Average Fair Value at Options Grant Date Non-vested options at January 1, 2021 36,989,300 $ 6.43 Options granted 215,080 12.11 Options vested (91,200) 3.88 Options forfeited (31,160) 5.77 Non-vested options at March 31, 2021 37,082,020 6.46 Options granted 7,215,100 13.29 Options vested (12,345,300) 5.70 Options forfeited (46,600) 7.97 Non-vested options at June 30, 2021 31,905,220 8.30 Options granted 95,400 14.19 Options vested (134,000) 4.76 Options forfeited (200,890) 8.09 Non-vested options at September 30, 2021 31,665,730 $ 8.33 During the three and nine months ended September 30, 2021 and 2020, the following activity occurred under the Company’s option plans: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Total intrinsic value of stock options exercised $ 108.1 $ 107.6 $ 246.5 $ 277.9 Total fair value of stock options vested 0.6 0.8 71.4 62.1 As of September 30, 2021, the total compensation cost related to non-vested options not yet recognized was approximately $216.1 with a weighted average expected amortization period of 3.54 years. The grant-date fair value of each option grant under the 2009 Employee Option Plan and the 2017 Option Plan is estimated using the Black-Scholes option pricing model. The grant-date fair value of each share grant is determined based on the closing share price of the Company’s Common Stock on the date of the grant. The fair value is then amortized on a straight-line basis over the requisite service period of the awards, which is generally the vesting period. Use of a valuation model for option grants requires management to make certain assumptions with respect to selected model inputs. Expected share price volatility is calculated based on the historical volatility of the Common Stock and implied volatility derived from related exchange traded options. The average expected life is based on the contractual term of the option and expected exercise and historical experience. The risk-free interest rate is based on U.S. Treasury zero-coupon issuances with a remaining term equal to the expected life assumed at the date of grant. The expected annual dividend per share is based on the Company’s dividend rate. Restricted Shares In 2012, the Company adopted the 2012 Restricted Stock Plan for Directors of Amphenol Corporation (the “2012 Directors Restricted Stock Plan”). The 2012 Directors Restricted Stock Plan is administered by the Company’s Board of Directors. As of September 30, 2021, the number of restricted shares available for grant under the 2012 Directors Restricted Stock Plan was 141,359 . Restricted shares granted under the 2012 Directors Restricted Stock Plan generally vest on the first anniversary of the grant date. Grants under the 2012 Directors Restricted Stock Plan entitle the holder to receive shares of the Company’s Common Stock without payment. Restricted share activity for the three and nine months ended September 30, 2021 was as follows: Weighted Average Remaining Restricted Fair Value at Amortization Shares Grant Date Term (in years) Restricted shares outstanding at January 1, 2021 26,350 $ 45.55 0.38 Restricted shares granted — — Restricted shares outstanding at March 31, 2021 26,350 45.55 0.13 Shares vested and issued (27,272) 45.80 Restricted shares granted 20,146 65.96 Restricted shares outstanding at June 30, 2021 19,224 66.59 0.88 Restricted shares granted 1,837 70.39 Restricted shares outstanding at September 30, 2021 21,061 $ 66.92 0.62 As of September 30, 2021, the total compensation cost related to non-vested restricted shares not yet recognized was approximately $0.9 (with a weighted average expected amortization period of 0.62 years). |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share | |
Earnings Per Share | Note 9—Earnings Per Share Basic earnings per share (“EPS”) is computed by dividing net income attributable to Amphenol Corporation by the weighted average number of common shares outstanding. Diluted EPS is computed by dividing net income attributable to Amphenol Corporation by the weighted average number of outstanding common shares, including dilutive common shares, the dilutive effect of which relates to stock options. A reconciliation of the basic weighted average common shares outstanding to diluted weighted average common shares outstanding, along with the earnings per share (basic and diluted) for the three and nine months ended September 30, 2021 and 2020 is as follows (note - per share amounts may not add due to rounding) Three Months Ended September 30, Nine Months Ended September 30, (dollars and shares in millions, except per share data) 2021 2020 2021 2020 Net income attributable to Amphenol Corporation shareholders: Net income from continuing operations attributable to Amphenol Corporation $ 418.8 $ 346.6 $ 1,115.5 $ 846.4 Income from discontinued operations attributable to Amphenol Corporation, net of income taxes of ($1.5) and ($1.8) for 2021, respectively 7.7 — 10.3 — Net income attributable to Amphenol Corporation $ 426.5 $ 346.6 $ 1,125.8 $ 846.4 Weighted average common shares outstanding — Basic 597.7 597.5 597.8 595.2 Effect of dilutive stock options 28.1 18.9 26.8 17.3 Weighted average common shares outstanding — Diluted 625.8 616.4 624.6 612.5 Net income per common share attributable to Amphenol Corporation — Basic: Continuing operations $ 0.70 $ 0.58 $ 1.87 $ 1.42 Discontinued operations, net of income taxes 0.01 — 0.02 — Net income attributable to Amphenol Corporation — Basic $ 0.71 $ 0.58 $ 1.88 $ 1.42 Net income per common share attributable to Amphenol Corporation — Diluted: Continuing operations $ 0.67 $ 0.56 $ 1.79 $ 1.38 Discontinued operations, net of income taxes 0.01 — 0.02 — Net income attributable to Amphenol Corporation — Diluted $ 0.68 $ 0.56 $ 1.80 $ 1.38 Excluded from the computations above were anti-dilutive common shares (primarily related to outstanding stock options) of 7.4 million and 9.2 million for the three months ended September 30, 2021 and 2020, respectively. Excluded from the computations above were anti-dilutive common shares (primarily related to outstanding stock options) of 3.8 million and 12.2 million for the nine months ended September 30, 2021 and 2020, respectively. |
Benefit Plans and Other Postret
Benefit Plans and Other Postretirement Benefits | 9 Months Ended |
Sep. 30, 2021 | |
Benefit Plans and Other Postretirement Benefits | |
Benefit Plans and Other Postretirement Benefits | Note 10—Benefit Plans and Other Postretirement Benefits The Company and certain of its domestic subsidiaries have defined benefit pension plans (the “U.S. Plans”), which cover certain U.S. employees and which represent the majority of the plan assets and benefit obligations of the aggregate defined benefit plans of the Company. The U.S. Plans’ benefits are generally based on years of service and compensation and are generally noncontributory. The majority of U.S. employees are not covered by the U.S. Plans and are covered by defined contribution plans. Certain foreign subsidiaries have defined benefit plans covering their employees (the “Foreign Plans” and, together with the U.S. Plans, the “Plans”). The following is a summary, based on the most recent actuarial valuations of the Company’s net cost for pension benefits, of the Plans for the three and nine months ended September 30, 2021 and 2020: Pension Benefits Three Months Ended September 30: 2021 2020 Service cost $ 1.9 $ 1.9 Interest cost 2.8 4.2 Expected return on plan assets (7.8) (9.3) Amortization of prior service cost 0.5 0.5 Amortization of net actuarial losses 6.2 6.3 Net pension expense $ 3.6 $ 3.6 Nine Months Ended September 30: Service cost $ 5.6 $ 5.6 Interest cost 8.4 12.5 Expected return on plan assets (23.4) (27.8) Amortization of prior service cost 1.5 1.6 Amortization of net actuarial losses 18.7 18.8 Net pension expense $ 10.8 $ 10.7 Based on the Company’s current investment strategy for its U.S. Plans, the Company’s expected long-term rate of return assumption to determine net periodic pension expense for 2021 is 6.0% . The Company offers various defined contribution plans for certain U.S. and foreign employees. Participation in these plans is based on certain eligibility requirements. The Company matches employee contributions to the U.S. defined contribution plans up to a maximum of 6 % of eligible compensation. During the nine months ended September 30, 2021 and 2020, the Company provided matching contributions to the U.S. defined contribution plans of approximately |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2021 | |
Acquisitions | |
Acquisitions | Note 11—Acquisitions 2021 Acquisitions During the first nine months of 2021, the Company completed six acquisitions for approximately $1,531.0 , net of cash acquired. acquisition has been included in the Cable Products and Solutions segment. The Company is in the process of completing its analyses of the fair value of the assets acquired and liabilities assumed. The Company anticipates that the final assessments of values will not differ materially from the preliminary assessments. The operating results of the 2021 acquisitions have been included in the Condensed Consolidated Statements of Income since their respective dates of acquisition. Pro forma financial information, as well as further details regarding the purchase price allocation related to these acquisitions, has not been presented, since these acquisitions were not material, either individually or in the aggregate, to the Company’s financial results. Acquisition of MTS Systems Corporation On December 9, 2020, Amphenol announced that the Company entered into a definitive agreement under which Amphenol would acquire MTS Systems Corporation (Nasdaq: MTSC) (“MTS”) for $58.50 per share in cash. MTS is a leading global supplier of precision sensors, advanced test systems and motion simulators. MTS was historically organized into business segments: Sensors (“MTS Sensors”) and Test & Simulation (“MTS T&S”). The MTS Sensors segment represents a highly complementary offering of high-technology, harsh environment sensors sold into diverse end markets and applications. The MTS Sensors business further expands the Company’s range of sensor and sensor-based products across a wide array of industries and is reported as part of our continuing operations and within our Interconnect Products and Assemblies segment. On January 19, 2021 and prior to the closing of the MTS acquisition, the Company entered into a definitive agreement to sell the MTS T&S business to Illinois Tool Works Inc. (“ITW”) (NYSE: ITW). Refer to Note 12 herein for further details related to the planned divestiture of the MTS T&S business. On April 7, 2021, the Company completed its acquisition of MTS for a purchase price of approximately $1,300 , net of cash acquired and including the repayment of certain outstanding debt and liabilities at closing. The MTS acquisition was funded through a combination of borrowings under the U.S. Commercial Paper Program, as discussed in Note 4 herein, and cash and cash equivalents on hand. In addition to the purchase price, the Company also assumed MTS’s then-outstanding The Company is in the process of completing the acquisition accounting related to MTS, specifically the allocation of the MTS purchase price to the tangible and identifiable intangible assets acquired and liabilities assumed of MTS based upon their estimated fair values. This preliminary purchase price allocation is being performed separately for the MTS Sensors business and the MTS T&S business, the latter of which is being accounted for as discontinued operations and whose assets acquired, including associated goodwill, and liabilities assumed are reported as current assets held for sale and liabilities held for sale on the accompanying Condensed Consolidated Balance Sheets. While the Company is in the process of completing its analyses of the fair value of the tangible and identifiable intangible assets acquired and liabilities assumed, as part of acquisition accounting, the MTS acquisition resulted in the recognition of $720.4 of goodwill, $54.0 of indefinite-lived tradename intangible assets and $183.4 of definite-lived intangible assets, each associated with the MTS Sensors business. The definite-lived intangible assets are comprised of customer relationships, proprietary technology, and backlog of years, respectively. Other than these intangible assets, the remainder of the purchase price has been allocated to other identifiable assets acquired and liabilities assumed. As part of acquisition accounting, the Company also recorded of deferred tax liabilities associated with certain basis differences, which the Company anticipates recovery for tax purposes by the end of 2021. The excess purchase price over the fair value of the underlying assets acquired (net of liabilities assumed) was allocated to goodwill, which primarily represents the value of assembled workforce and the anticipated cost savings and efficiencies associated with the integration of MTS, along with other intangible assets acquired that do not qualify for separate recognition. The Company does t expect any of the recognized goodwill associated with the acquisition of MTS to be deductible for tax purposes. Since the current purchase price allocation is based on preliminary assessments made by management as of September 30, 2021, the acquisition accounting for MTS is subject to final adjustment and it is possible that the final assessment of values may differ from this preliminary assessment. With the exception of the MTS T&S business, which has been classified and reported as discontinued operations as discussed further in Note 12 herein, the operating results for MTS have been included within continuing operations in the Condensed Consolidated Statements of Income since the acquisition date. 2020 Acquisitions During the year ended December 31, 2020, the Company completed two acquisitions, which are included in the Interconnect Products and Assemblies segment, for approximately $50 , net of cash acquired. The Company has completed the acquisition accounting, including the analyses of the fair value of the assets acquired and liabilities assumed, for both 2020 acquisitions. The final assessments of values did not differ materially from the preliminary assessments. Pro forma financial information, as well as further details regarding the purchase price allocation related to these acquisitions, has not been presented, since these acquisitions were not material, either individually or in the aggregate, to the Company’s financial results. Acquisition-related Expenses During the nine months ended September 30, 2021, the Company incurred $55.4 ($44.6 after-tax) of acquisition-related expenses, primarily comprised of transaction, severance, restructuring and certain non-cash costs related to the MTS acquisition. Such acquisition-related expenses are separately presented in the accompanying Condensed Consolidated Statements of Income. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2021 | |
Discontinued Operations | |
Discontinued Operations | Note 12—Discontinued Operations Planned Divestiture of MTS T&S Business On January 19, 2021 and prior to the closing of the MTS acquisition, the Company entered into a definitive agreement to sell the MTS T&S business to ITW. The agreed-upon sale price is approximately $750 , excluding any outstanding net debt assumed by Amphenol related to the MTS T&S business and subject to post-closing adjustment. The Company expects to close on the sale of the MTS T&S business upon the receipt of all required regulatory approvals and the satisfaction of other customary closing conditions, which is expected to be within Since the MTS T&S business, which was part of the recent MTS acquisition, has never been nor is expected to ever be considered part of our continuing operations, the Company classifies and reports the financial results and related cash flows of the MTS T&S business as discontinued operations, effective as of the MTS acquisition date, in the accompanying Condensed Consolidated Financial Statements. The Company will continue to report the MTS T&S business as a discontinued operation until the business is sold to ITW as currently anticipated. As discussed in Note 11 herein, the purchase price allocation associated with the MTS T&S business is being performed separately from the MTS Sensors business, as the MTS T&S business meets the “held for sale” accounting criteria. These assets acquired and liabilities assumed resulting from the MTS T&S purchase price allocation are measured and recorded at fair value less costs to sell as of the date of the MTS acquisition; such accounts are included in Current assets held for sale and Current liabilities held for sale, respectively, in the Condensed Consolidated Balance Sheets, each presented as separate single line items in the Condensed Consolidated Balance Sheets as of September 30, 2021. contingent consideration liability from the MTS acquisition, which was recognized at fair value as part of acquisition accounting and was recorded within Current liabilities held for sale in the Condensed Consolidated Balance Sheets upon acquisition. During the third quarter of 2021, the Company made a capital contribution to its MTS T&S business (discontinued operations), which in turn used the funding to settle the contingent consideration. of the date of the acquisition of MTS, and as such, these associated assets held for sale and liabilities held for sale have been classified as current as of September 30, 2021. The Company also ceased recording depreciation and amortization on the held for sale assets as of the MTS acquisition date. The Company did not assign the MTS T&S business to either of our two reportable business segments due to its planned sale. Amphenol will not have any continuing involvement with the MTS T&S business after the date of its divestiture. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Other Intangible Assets | |
Goodwill and Other Intangible Assets | Note 13—Goodwill and Other Intangible Assets The changes in the carrying amount of goodwill by segment were as follows: Interconnect Cable Products and Products and Assemblies Solutions Total Goodwill at December 31, 2020 $ 4,874.5 $ 157.6 $ 5,032.1 Acquisition-related 856.9 11.5 868.4 Foreign currency translation (61.0) (0.1) (61.1) Goodwill at September 30, 2021 $ 5,670.4 $ 169.0 $ 5,839.4 The Company performs its evaluation for the impairment of goodwill for the Company’s reporting units on an annual basis as of each July 1 or more frequently if an event occurs or circumstances change that would indicate that a reporting unit’s carrying amount may be impaired. The Company reviews its reporting unit structure each year or more frequently based on changes in our organization. We continue to define our reporting units as the two reportable business segments “Interconnect Products and Assemblies” and “Cable Products and Solutions”. In the third quarter of 2021, as part of our annual evaluations, the Company utilized the option to first assess qualitative factors to determine whether it was necessary to perform the quantitative goodwill impairment assessment. As part of this assessment, the Company reviews qualitative factors which include, but are not limited to, economic, market and industry conditions, as well as the financial performance of each reporting unit. In accordance with applicable guidance, an entity is not required to calculate the fair value of a reporting unit if, after assessing these qualitative factors, the Company determines that it is more likely than not that the fair value of each of its reporting units is greater than its respective carrying amount. As of July 1, 2021, the Company determined that it was more likely than not that the fair value of its reporting units exceeded their respective carrying amounts and therefore, a quantitative assessment was not required. As a result, no goodwill impairment resulted from the assessment as of July 1, 2021. Other than goodwill noted above, the Company’s intangible assets as of September 30, 2021 and December 31, 2020 were as follows: September 30, 2021 December 31, 2020 Weighted Gross Net Gross Net Average Carrying Accumulated Carrying Carrying Accumulated Carrying Life (years) Amount Amortization Amount Amount Amortization Amount Customer relationships 10 $ 612.2 $ 346.1 $ 266.1 $ 456.6 $ 313.6 $ 143.0 Proprietary technology 12 195.2 98.1 97.1 156.2 88.1 68.1 Backlog and other 1 65.9 65.6 0.3 49.7 49.4 0.3 Total intangible assets (definite-lived) 9 873.3 509.8 363.5 662.5 451.1 211.4 Trade names (indefinite-lived) 240.1 240.1 186.1 186.1 $ 1,113.4 $ 509.8 $ 603.6 $ 848.6 $ 451.1 $ 397.5 The increase in the gross carrying amount of intangible assets in the first nine months of 2021 was driven by certain customer relationships recognized as a result of the acquisition accounting associated with our 2021 acquisitions, primarily from the MTS acquisition. Amortization expense for the three months ended September 30, 2021 and 2020 was approximately $16.4 and $12.3 , respectively. Amortization expense for the nine months ended September 30, 2021 and 2020 was approximately $61.3 and $37.6 , respectively. Amortization expense for the nine months ended September 30, 2021 includes $16.2 related to the amortization of acquired backlog resulting from the MTS acquisition. As of September 30, 2021, amortization expense relating to the Company’s current intangible assets estimated for the remainder of 2021 is approximately $15.6 and for each of the next five fiscal years is approximately $57.3 in 2022, $54.5 in 2023, $48.8 in 2024, $39.4 in 2025 and $37.7 in 2026. The Company reviews its identifiable intangible assets subject to amortization whenever events or changes in circumstances indicate the intangible asset’s carrying amount may not be recoverable, while any indefinite-lived intangible assets that are not subject to amortization, which are comprised of certain trade names, are reviewed at least annually for impairment. In the third quarter of 2021, the Company performed its annual assessment of these identifiable indefinite-lived intangible assets. Based on our assessment, the Company determined that it was more likely than not that the fair value of the indefinite-lived intangible assets exceeded their respective carrying amounts. There has been no impairment associated with our intangible assets in 2021, 2020 or 2019 as a result of such reviews. |
Reportable Business Segments
Reportable Business Segments | 9 Months Ended |
Sep. 30, 2021 | |
Reportable Business Segments | |
Reportable Business Segments | Note 14—Reportable Business Segments The Company has two reportable business segments: (i) Interconnect Products and Assemblies and (ii) Cable Products and Solutions. The Company organizes its reportable business segments based upon similar economic characteristics and business groupings of products, services, and customers, and do not include any aggregated operating segments. These reportable business segments are determined based upon how the Company operates its businesses, assesses operating performance, makes resource allocation decisions, and communicates results, outlook and strategy to our Board of Directors and shareholders. The Interconnect Products and Assemblies segment primarily designs, manufactures and markets a broad range of connector and connector systems, value-add products and other products, including antennas and sensors, used in a broad range of applications in a diverse set of end markets. The Cable Products and Solutions segment primarily designs, manufactures and markets cable, value-add products and components for use primarily in the broadband communications and information technology markets as well as certain applications in other markets. The accounting policies of the segments are the same as those for the Company as a whole and are described herein and in Note 1 of the Notes to Consolidated Financial Statements in the 2020 Annual Report. The Company evaluates the performance of the segments and allocates resources to them based on, among other things, profit or loss from operations before interest, headquarters’ expense allocations, stock-based compensation expense, income taxes, amortization related to certain intangible assets and nonrecurring gains and losses. The segment results for the three and nine months ended September 30, 2021 and 2020 are as follows: Interconnect Products Cable Products and Assemblies and Solutions Corporate / Other (1) Total Consolidated Three Months Ended September 30: 2021 2020 2021 2020 2021 2020 2021 2020 Net sales: External $ 2,699.2 $ 2,221.9 $ 119.3 $ 101.5 $ — $ — $ 2,818.5 $ 2,323.4 Intersegment 34.4 18.4 15.3 9.6 — — 49.7 28.0 Segment operating income 603.3 498.4 4.6 10.9 607.9 509.3 Nine Months Ended September 30: Net sales: External $ 7,520.5 $ 5,899.4 $ 329.0 $ 273.5 $ — $ — $ 7,849.5 $ 6,172.9 Intersegment 79.1 39.4 41.2 27.3 — — 120.3 66.7 Segment operating income 1,652.3 1,217.6 20.0 25.7 1,672.3 1,243.3 (1) Corporate / Other is not a reportable business segment; the reconciliation of segment operating income to consolidated results is included in the table below. A reconciliation of segment operating income to consolidated income from continuing operations before income taxes for the three and nine months ended September 30, 2021 and 2020 is summarized as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Segment operating income $ 607.9 $ 509.3 $ 1,672.3 $ 1,243.3 Stock-based compensation expense (21.2) (19.0) (60.2) (51.0) Acquisition-related expenses — — (55.4) — Other operating expenses (15.5) (14.5) (44.5) (42.2) Interest expense (29.0) (28.0) (86.7) (87.1) Other income (expense), net — 1.0 (0.3) 3.4 Income from continuing operations before income taxes $ 542.2 $ 448.8 $ 1,425.2 $ 1,066.4 |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2021 | |
Revenue Recognition | |
Revenue Recognition | Note 15—Revenue Recognition Revenues consist of product sales to either end customers and their appointed contract manufacturers (including original equipment manufacturers) or to distributors, and the vast majority of our sales are recognized at a point-in-time under the core principle of recognizing revenue when control transfers to the customer. With limited exceptions, the Company recognizes revenue at the point in time when we ship or deliver the product from our manufacturing facility to our customer, when our customer accepts and has legal title of the goods, and where the Company has a present right to payment for such goods. For the three and nine months ended September 30, 2021 and 2020, less than 5% of our net sales were recognized over time, where the associated contracts relate to the sale of goods with no alternative use as they are only sold to a single customer and whose underlying contract terms provide the Company with an enforceable right to payment, including a reasonable profit margin, for performance completed to date, in the event of customer termination. Since we typically invoice our customers at the same time that we satisfy our performance obligations, contract assets and contract liabilities related to our contracts with customers recorded in the Company’s Condensed Consolidated Balance Sheets were not significant as of September 30, 2021 and December 31, 2020. These amounts are recorded in the accompanying Condensed Consolidated Balance Sheets within Prepaid expenses and other current assets or Other accrued expenses as of September 30, 2021 and December 31, 2020. The Company receives customer orders negotiated with multiple delivery dates that may extend across more than one reporting period until the contract is fulfilled, the end of the order period is reached, or a pre-determined maximum order value has been reached. Orders typically fluctuate from quarter to quarter based on customer demand and general business conditions. It is generally expected that a substantial portion of our remaining performance obligations will be fulfilled within three months , and nearly all of our performance obligations are fulfilled within one year . Since our performance obligations are part of contracts that generally have original durations of one year or less, we have not disclosed the aggregate amount of transaction prices associated with unsatisfied or partially unsatisfied performance obligations as of September 30, 2021. While the Company typically offers standard product warranty coverage which provides assurance that our products will conform to the contractually agreed-upon specifications for a limited period from the date of shipment, the Company’s warranty liabilities as of September 30, 2021 and December 31, 2020, and related warranty expense for the three and nine months ended September 30, 2021 and 2020, have not been and were not material in the accompanying Condensed Consolidated Financial Statements. Disaggregation of Net Sales The following tables show our net sales disaggregated into categories the Company considers meaningful to depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors for the three and nine months ended September 30, 2021 and 2020: Interconnect Products Cable Products Total Reportable and Assemblies and Solutions Business Segments Three Months Ended September 30, 2021 2020 2021 2020 2021 2020 Net sales by: Sales channel: End customers and contract manufacturers $ 2,222.9 $ 1,872.9 $ 101.1 $ 85.8 $ 2,324.0 $ 1,958.7 Distributors and resellers 476.3 349.0 18.2 15.7 494.5 364.7 $ 2,699.2 $ 2,221.9 $ 119.3 $ 101.5 $ 2,818.5 $ 2,323.4 Geography: United States $ 760.2 $ 607.8 $ 69.8 $ 61.0 $ 830.0 $ 668.8 China 775.8 719.0 3.0 1.8 778.8 720.8 Other foreign locations 1,163.2 895.1 46.5 38.7 1,209.7 933.8 $ 2,699.2 $ 2,221.9 $ 119.3 $ 101.5 $ 2,818.5 $ 2,323.4 Nine Months Ended September 30, Net sales by: Sales channel: End customers and contract manufacturers $ 6,248.8 $ 4,935.6 $ 275.5 $ 228.7 $ 6,524.3 $ 5,164.3 Distributors and resellers 1,271.7 963.8 53.5 44.8 1,325.2 1,008.6 $ 7,520.5 $ 5,899.4 $ 329.0 $ 273.5 $ 7,849.5 $ 6,172.9 Geography: United States $ 2,103.6 $ 1,695.1 $ 179.4 $ 158.9 $ 2,283.0 $ 1,854.0 China 2,121.1 1,778.6 8.8 4.3 2,129.9 1,782.9 Other foreign locations 3,295.8 2,425.7 140.8 110.3 3,436.6 2,536.0 $ 7,520.5 $ 5,899.4 $ 329.0 $ 273.5 $ 7,849.5 $ 6,172.9 Net sales by geographic area are based on the customer location to which the product is shipped. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 16—Commitments and Contingencies From time to time, the Company has been threatened with, or named as a defendant in, various legal or regulatory actions in the ordinary course of business. The Company records a loss contingency liability when a loss is considered probable and the amount can be reasonably estimated. Although the potential liability with respect to certain of such legal or regulatory actions cannot be reasonably estimated, none of such matters is expected to have a material adverse effect on the Company’s financial condition, results of operations or cash flows. The Company’s legal costs associated with defending itself are recorded to expense as incurred. In August 2018, the Company received a subpoena from the U.S. Department of Defense, Office of the Inspector General (the “OIG”), requesting documents pertaining to certain products manufactured by the Company’s Military and Aerospace Group that are purchased or used by the U.S. government. As of the date of this filing, the Company has responded to several production requests from the OIG, with the most recent being completed during the third quarter of 2021. This matter is ongoing and the Company continues to cooperate with the OIG on its requests. The Company is currently unable to estimate the timing or outcome of the matter. From December 2019 through October 2020, the Company was named as one of several defendants in four separate lawsuits filed in the State of Indiana . The lawsuits relate to a manufacturing site in Franklin, Indiana (the “Site”) where the Company has been conducting an environmental clean-up effort under the direction of the United States Environmental Protection Agency (the “EPA”). The Site was shut down in 1983, more than three years before the Company acquired the Site as part of a larger acquisition that led to the establishment of the Company’s business in 1987 (the “Acquisition”). In connection with the Acquisition, the Company agreed, and has continued, to work closely with the EPA regarding the ongoing clean-up effort at the Site, subject to an indemnity from the seller (the “Seller”). In 1989, the Company sold the property where the Site is located. The lawsuits collectively seek, among other things, compensation for personal injuries and for past, present and future medical expenses, compensation for loss of property values near the Site and costs related to medical monitoring for individuals living close to the Site, in each case arising from alleged exposure to hazardous chemicals. The Company denies any wrongdoing and is defending each of the above described lawsuits. All the costs incurred relating to these lawsuits are reimbursed by the Seller based on the Seller’s indemnification obligations entered into in connection with the Acquisition (the “1987 Indemnification Agreement”). In addition, the environmental investigation, remediation and monitoring activities undertaken by the Company relating to the Site are reimbursed under the 1987 Indemnification Agreement. As a result, the Company does not believe that the costs associated with these lawsuits or the resolution of the related environmental matters will have a material adverse effect on the Company’s consolidated financial condition, results of operations or cash flows. In March 2021, a non-material customer of the Company filed a formal request for arbitration against the Company relating to a product sold to such customer that the customer alleges did not meet the agreed upon product specification. The customer is pursuing breach of warranty claims against the Company, among other assertions, and is seeking damages relating to its estimated costs of replacing the product. While the customer has claimed damages of approximately €90 , the arbitrator will have discretion to determine the actual amount of damages as well as the apportionment of responsibility between the parties. The Company has denied that its product caused the damages, that its product did not meet the agreed upon specifications and that the claimed damages are appropriate, and is vigorously defending itself in the arbitration. Certain operations of the Company are subject to environmental laws and regulations that govern the discharge of pollutants into the air and water, as well as the handling and disposal of solid and hazardous wastes. The Company believes that its operations are currently in substantial compliance with applicable environmental laws and regulations and that the costs of continuing compliance will not have a material adverse effect on the Company’s financial condition, results of operations or cash flows. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Inventories | |
Schedule of Inventories | September 30, December 31, 2021 2020 Raw materials and supplies $ 815.2 $ 587.4 Work in process 535.0 410.7 Finished goods 602.3 464.1 $ 1,952.5 $ 1,462.2 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt | |
Schedule of debt | September 30, 2021 December 31, 2020 Carrying Approximate Carrying Approximate Amount Fair Value Amount Fair Value Revolving Credit Facility $ — $ — $ — $ — U.S. Commercial Paper Program 924.3 924.3 — — Euro Commercial Paper Program — — — — 3.125% Senior Notes due September 2021 — — 227.7 231.6 4.00% Senior Notes due February 2022 295.0 295.8 294.9 303.6 3.20% Senior Notes due April 2024 349.9 369.6 349.8 378.1 2.050% Senior Notes due March 2025 399.5 412.4 399.4 420.7 0.750% Euro Senior Notes due May 2026 577.8 597.5 608.4 633.6 2.000% Euro Senior Notes due October 2028 577.7 649.1 608.4 694.9 4.350% Senior Notes due June 2029 499.6 579.2 499.6 608.4 2.800% Senior Notes due February 2030 899.4 945.6 899.4 987.8 2.200% Senior Notes due September 2031 747.3 742.9 — — Other debt 7.6 7.6 6.7 6.7 Less: unamortized deferred debt issuance costs (29.4) — (27.8) — Total debt 5,248.7 5,524.0 3,866.5 4,265.4 Less: current portion 298.7 299.5 230.3 234.2 Total long-term debt $ 4,950.0 $ 5,224.5 $ 3,636.2 $ 4,031.2 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Measurements | |
Fair values of financial and non-financial assets and liabilities | Fair Value Measurements Quoted Prices in Significant Significant Active Markets Observable Unobservable for Identical Inputs Inputs Total Assets (Level 1) (Level 2) (Level 3) September 30, 2021: Short-term investments $ 34.4 $ 34.4 $ — $ — Forward contracts (5.4) — (5.4) — Total $ 29.0 $ 34.4 $ (5.4) $ — December 31, 2020: Short-term investments $ 36.1 $ 36.1 $ — $ — Forward contracts (2.7) — (2.7) — Total $ 33.4 $ 36.1 $ (2.7) $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Income Taxes | |
Schedule of provision for income taxes and effective tax rate | Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Provision for income taxes $ (120.5) $ (99.3) $ (302.8) $ (213.3) Effective tax rate 22.2 % 22.1 % 21.2 % 20.0 % |
Shareholders' Equity and Nonc_2
Shareholders' Equity and Noncontrolling Interests (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Shareholders' Equity and Noncontrolling Interests | |
Rollforward of consolidated changes in equity | A rollforward of consolidated changes in equity for the three months ended September 30, 2021 is as follows: Amphenol Corporation Shareholders Accumulated Common Stock Treasury Stock Other Shares Shares Additional Retained Comprehensive Noncontrolling Total (in millions) Amount (in millions) Amount Paid-In Capital Earnings Loss Interests Equity Balance as of June 30, 2021 599.3 $ 0.6 (1.8) $ (100.1) $ 2,198.9 $ 3,916.4 $ (300.3) $ 62.8 $ 5,778.3 Net income 426.5 2.9 429.4 Other comprehensive income (loss) (35.2) 0.1 (35.1) Distributions to shareholders of noncontrolling interests (3.0) (3.0) Purchase of treasury stock (2.3) (170.9) (170.9) Retirement of treasury stock (2.3) — 2.3 170.9 (170.9) — Stock options exercised 2.2 — 0.2 10.8 69.4 (4.7) 75.5 Dividends declared ($0.145 per common share) (86.7) (86.7) Stock-based compensation expense 21.2 21.2 Balance as of September 30, 2021 599.2 $ 0.6 (1.6) $ (89.3) $ 2,289.5 $ 4,080.6 $ (335.5) $ 62.8 $ 6,008.7 A rollforward of consolidated changes in equity for the nine months ended September 30, 2021 is as follows: Amphenol Corporation Shareholders Accumulated Common Stock Treasury Stock Other Shares Shares Additional Retained Comprehensive Noncontrolling Total (in millions) Amount (in millions) Amount Paid-In Capital Earnings Loss Interests Equity Balance as of December 31, 2020 600.7 $ 0.6 (2.0) $ (111.1) $ 2,068.1 $ 3,705.4 $ (278.1) $ 67.0 $ 5,451.9 Net income 1,125.8 6.9 1,132.7 Other comprehensive income (loss) (57.4) 0.9 (56.5) Acquisitions resulting in noncontrolling interest 1.8 1.8 Purchase of noncontrolling interest 2.5 (7.3) (4.8) Distributions to shareholders of noncontrolling interests (6.5) (6.5) Purchase of treasury stock (7.2) (491.0) (491.0) Retirement of treasury stock (6.9) — 6.9 471.2 (471.2) — Stock options exercised 5.4 — 0.7 41.6 158.7 (19.5) 180.8 Dividends declared ($0.435 per common share) (259.9) (259.9) Stock-based compensation expense 60.2 60.2 Balance as of September 30, 2021 599.2 $ 0.6 (1.6) $ (89.3) $ 2,289.5 $ 4,080.6 $ (335.5) $ 62.8 $ 6,008.7 A rollforward of consolidated changes in equity for the three months ended September 30, 2020 is as follows: Amphenol Corporation Shareholders Accumulated Common Stock Treasury Stock Other Shares Shares Additional Retained Comprehensive Noncontrolling Total (in millions) Amount (in millions) Amount Paid-In Capital Earnings Loss Interests Equity Balance as of June 30, 2020 597.1 $ 0.6 (0.5) $ (21.0) $ 1,834.2 $ 3,419.4 $ (494.6) $ 61.7 $ 4,800.3 Net income 346.6 2.9 349.5 Other comprehensive income (loss) 106.2 2.3 108.5 Distributions to shareholders of noncontrolling interests (1.9) (1.9) Purchase of treasury stock (3.7) (201.9) (201.9) Retirement of treasury stock (1.7) — 1.7 91.6 (91.6) — Stock options exercised 3.3 — 0.7 34.4 84.6 (12.6) 106.4 Dividends declared ($0.125 per common share) (74.7) (74.7) Stock-based compensation expense 19.0 19.0 Balance as of September 30, 2020 598.7 $ 0.6 (1.8) $ (96.9) $ 1,937.8 $ 3,587.1 $ (388.4) $ 65.0 $ 5,105.2 A rollforward of consolidated changes in equity for the nine months ended September 30, 2020 is as follows: Amphenol Corporation Shareholders Accumulated Common Stock Treasury Stock Other Shares Shares Additional Retained Comprehensive Noncontrolling Total (in millions) Amount (in millions) Amount Paid-In Capital Earnings Loss Interests Equity Balance as of December 31, 2019 597.4 $ 0.6 (1.6) $ (70.8) $ 1,683.0 $ 3,348.4 $ (430.9) $ 65.9 $ 4,596.2 Cumulative effect of adoption of credit loss standard (ASU 2016-13) (3.8) (3.8) Net income 846.4 6.7 853.1 Other comprehensive income (loss) 42.5 1.5 44.0 Acquisitions resulting in noncontrolling interest 0.3 0.3 Purchase of noncontrolling interest (2.1) (5.2) (7.3) Distributions to shareholders of noncontrolling interests (4.2) (4.2) Purchase of treasury stock (9.1) (459.2) (459.2) Retirement of treasury stock (7.1) — 7.1 348.9 (348.9) — Stock options exercised 8.4 — 1.8 84.2 205.9 (31.8) 258.3 Dividends declared ($0.375 per common share) (223.2) (223.2) Stock-based compensation expense 51.0 51.0 Balance as of September 30, 2020 598.7 $ 0.6 (1.8) $ (96.9) $ 1,937.8 $ 3,587.1 $ (388.4) $ 65.0 $ 5,105.2 |
Schedules of dividends | Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Dividends declared $ 86.7 $ 74.7 $ 259.9 $ 223.2 Dividends paid (including those declared in the prior year) 86.6 74.6 260.0 223.0 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Stock-Based Compensation | |
Schedule of stock option activity | Weighted Average Aggregate Weighted Remaining Intrinsic Average Contractual Value Options Exercise Price Term (in years) (in millions) Options outstanding at January 1, 2021 67,985,648 $ 37.58 6.79 $ 1,890.4 Options granted 215,080 64.69 Options exercised (757,598) 28.12 Options forfeited (31,160) 42.37 Options outstanding at March 31, 2021 67,411,970 37.77 6.57 1,901.0 Options granted 7,215,100 66.62 Options exercised (2,882,332) 29.14 Options forfeited (46,600) 49.05 Options outstanding at June 30, 2021 71,698,138 41.01 6.77 1,964.3 Options granted 95,400 71.64 Options exercised (2,494,842) 30.30 Options forfeited (200,890) 48.28 Options outstanding at September 30, 2021 69,097,806 $ 41.42 6.60 $ 2,198.0 Vested and non-vested options expected to vest at September 30, 2021 65,684,351 $ 41.03 6.52 $ 2,114.9 Exercisable options at September 30, 2021 37,432,076 $ 34.81 5.33 $ 1,438.1 |
Summary of status of non-vested options and changes during the year | Weighted Average Fair Value at Options Grant Date Non-vested options at January 1, 2021 36,989,300 $ 6.43 Options granted 215,080 12.11 Options vested (91,200) 3.88 Options forfeited (31,160) 5.77 Non-vested options at March 31, 2021 37,082,020 6.46 Options granted 7,215,100 13.29 Options vested (12,345,300) 5.70 Options forfeited (46,600) 7.97 Non-vested options at June 30, 2021 31,905,220 8.30 Options granted 95,400 14.19 Options vested (134,000) 4.76 Options forfeited (200,890) 8.09 Non-vested options at September 30, 2021 31,665,730 $ 8.33 |
Summary of activity in the option plans | Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Total intrinsic value of stock options exercised $ 108.1 $ 107.6 $ 246.5 $ 277.9 Total fair value of stock options vested 0.6 0.8 71.4 62.1 |
Schedule of restricted share activity | Weighted Average Remaining Restricted Fair Value at Amortization Shares Grant Date Term (in years) Restricted shares outstanding at January 1, 2021 26,350 $ 45.55 0.38 Restricted shares granted — — Restricted shares outstanding at March 31, 2021 26,350 45.55 0.13 Shares vested and issued (27,272) 45.80 Restricted shares granted 20,146 65.96 Restricted shares outstanding at June 30, 2021 19,224 66.59 0.88 Restricted shares granted 1,837 70.39 Restricted shares outstanding at September 30, 2021 21,061 $ 66.92 0.62 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share | |
Schedule of the reconciliation of basic weighted average common shares outstanding to diluted weighted average common shares outstanding | Three Months Ended September 30, Nine Months Ended September 30, (dollars and shares in millions, except per share data) 2021 2020 2021 2020 Net income attributable to Amphenol Corporation shareholders: Net income from continuing operations attributable to Amphenol Corporation $ 418.8 $ 346.6 $ 1,115.5 $ 846.4 Income from discontinued operations attributable to Amphenol Corporation, net of income taxes of ($1.5) and ($1.8) for 2021, respectively 7.7 — 10.3 — Net income attributable to Amphenol Corporation $ 426.5 $ 346.6 $ 1,125.8 $ 846.4 Weighted average common shares outstanding — Basic 597.7 597.5 597.8 595.2 Effect of dilutive stock options 28.1 18.9 26.8 17.3 Weighted average common shares outstanding — Diluted 625.8 616.4 624.6 612.5 Net income per common share attributable to Amphenol Corporation — Basic: Continuing operations $ 0.70 $ 0.58 $ 1.87 $ 1.42 Discontinued operations, net of income taxes 0.01 — 0.02 — Net income attributable to Amphenol Corporation — Basic $ 0.71 $ 0.58 $ 1.88 $ 1.42 Net income per common share attributable to Amphenol Corporation — Diluted: Continuing operations $ 0.67 $ 0.56 $ 1.79 $ 1.38 Discontinued operations, net of income taxes 0.01 — 0.02 — Net income attributable to Amphenol Corporation — Diluted $ 0.68 $ 0.56 $ 1.80 $ 1.38 |
Benefit Plans and Other Postr_2
Benefit Plans and Other Postretirement Benefits (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Benefit Plans and Other Postretirement Benefits | |
Schedule of components of net pension expense | Pension Benefits Three Months Ended September 30: 2021 2020 Service cost $ 1.9 $ 1.9 Interest cost 2.8 4.2 Expected return on plan assets (7.8) (9.3) Amortization of prior service cost 0.5 0.5 Amortization of net actuarial losses 6.2 6.3 Net pension expense $ 3.6 $ 3.6 Nine Months Ended September 30: Service cost $ 5.6 $ 5.6 Interest cost 8.4 12.5 Expected return on plan assets (23.4) (27.8) Amortization of prior service cost 1.5 1.6 Amortization of net actuarial losses 18.7 18.8 Net pension expense $ 10.8 $ 10.7 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Other Intangible Assets | |
Schedule of changes in the carrying amount of goodwill by segment | Interconnect Cable Products and Products and Assemblies Solutions Total Goodwill at December 31, 2020 $ 4,874.5 $ 157.6 $ 5,032.1 Acquisition-related 856.9 11.5 868.4 Foreign currency translation (61.0) (0.1) (61.1) Goodwill at September 30, 2021 $ 5,670.4 $ 169.0 $ 5,839.4 |
Summary of the Company's amortizable intangible assets | Other than goodwill noted above, the Company’s intangible assets as of September 30, 2021 and December 31, 2020 were as follows: September 30, 2021 December 31, 2020 Weighted Gross Net Gross Net Average Carrying Accumulated Carrying Carrying Accumulated Carrying Life (years) Amount Amortization Amount Amount Amortization Amount Customer relationships 10 $ 612.2 $ 346.1 $ 266.1 $ 456.6 $ 313.6 $ 143.0 Proprietary technology 12 195.2 98.1 97.1 156.2 88.1 68.1 Backlog and other 1 65.9 65.6 0.3 49.7 49.4 0.3 Total intangible assets (definite-lived) 9 873.3 509.8 363.5 662.5 451.1 211.4 Trade names (indefinite-lived) 240.1 240.1 186.1 186.1 $ 1,113.4 $ 509.8 $ 603.6 $ 848.6 $ 451.1 $ 397.5 |
Summary of the Company's indefinite-lived intangible assets | Other than goodwill noted above, the Company’s intangible assets as of September 30, 2021 and December 31, 2020 were as follows: September 30, 2021 December 31, 2020 Weighted Gross Net Gross Net Average Carrying Accumulated Carrying Carrying Accumulated Carrying Life (years) Amount Amortization Amount Amount Amortization Amount Customer relationships 10 $ 612.2 $ 346.1 $ 266.1 $ 456.6 $ 313.6 $ 143.0 Proprietary technology 12 195.2 98.1 97.1 156.2 88.1 68.1 Backlog and other 1 65.9 65.6 0.3 49.7 49.4 0.3 Total intangible assets (definite-lived) 9 873.3 509.8 363.5 662.5 451.1 211.4 Trade names (indefinite-lived) 240.1 240.1 186.1 186.1 $ 1,113.4 $ 509.8 $ 603.6 $ 848.6 $ 451.1 $ 397.5 |
Reportable Business Segments (T
Reportable Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Reportable Business Segments | |
Schedule of segment reporting information by segment | Interconnect Products Cable Products and Assemblies and Solutions Corporate / Other (1) Total Consolidated Three Months Ended September 30: 2021 2020 2021 2020 2021 2020 2021 2020 Net sales: External $ 2,699.2 $ 2,221.9 $ 119.3 $ 101.5 $ — $ — $ 2,818.5 $ 2,323.4 Intersegment 34.4 18.4 15.3 9.6 — — 49.7 28.0 Segment operating income 603.3 498.4 4.6 10.9 607.9 509.3 Nine Months Ended September 30: Net sales: External $ 7,520.5 $ 5,899.4 $ 329.0 $ 273.5 $ — $ — $ 7,849.5 $ 6,172.9 Intersegment 79.1 39.4 41.2 27.3 — — 120.3 66.7 Segment operating income 1,652.3 1,217.6 20.0 25.7 1,672.3 1,243.3 (1) Corporate / Other is not a reportable business segment; the reconciliation of segment operating income to consolidated results is included in the table below. |
Schedule of the reconciliation of segment operating income to consolidated income before income taxes | Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Segment operating income $ 607.9 $ 509.3 $ 1,672.3 $ 1,243.3 Stock-based compensation expense (21.2) (19.0) (60.2) (51.0) Acquisition-related expenses — — (55.4) — Other operating expenses (15.5) (14.5) (44.5) (42.2) Interest expense (29.0) (28.0) (86.7) (87.1) Other income (expense), net — 1.0 (0.3) 3.4 Income from continuing operations before income taxes $ 542.2 $ 448.8 $ 1,425.2 $ 1,066.4 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue Recognition | |
Schedule of disaggregation of net sales | Interconnect Products Cable Products Total Reportable and Assemblies and Solutions Business Segments Three Months Ended September 30, 2021 2020 2021 2020 2021 2020 Net sales by: Sales channel: End customers and contract manufacturers $ 2,222.9 $ 1,872.9 $ 101.1 $ 85.8 $ 2,324.0 $ 1,958.7 Distributors and resellers 476.3 349.0 18.2 15.7 494.5 364.7 $ 2,699.2 $ 2,221.9 $ 119.3 $ 101.5 $ 2,818.5 $ 2,323.4 Geography: United States $ 760.2 $ 607.8 $ 69.8 $ 61.0 $ 830.0 $ 668.8 China 775.8 719.0 3.0 1.8 778.8 720.8 Other foreign locations 1,163.2 895.1 46.5 38.7 1,209.7 933.8 $ 2,699.2 $ 2,221.9 $ 119.3 $ 101.5 $ 2,818.5 $ 2,323.4 Nine Months Ended September 30, Net sales by: Sales channel: End customers and contract manufacturers $ 6,248.8 $ 4,935.6 $ 275.5 $ 228.7 $ 6,524.3 $ 5,164.3 Distributors and resellers 1,271.7 963.8 53.5 44.8 1,325.2 1,008.6 $ 7,520.5 $ 5,899.4 $ 329.0 $ 273.5 $ 7,849.5 $ 6,172.9 Geography: United States $ 2,103.6 $ 1,695.1 $ 179.4 $ 158.9 $ 2,283.0 $ 1,854.0 China 2,121.1 1,778.6 8.8 4.3 2,129.9 1,782.9 Other foreign locations 3,295.8 2,425.7 140.8 110.3 3,436.6 2,536.0 $ 7,520.5 $ 5,899.4 $ 329.0 $ 273.5 $ 7,849.5 $ 6,172.9 |
Basis of Presentation and Pri_2
Basis of Presentation and Principles of Consolidation (Narrative) (Details) $ / shares in Units, $ in Millions | Mar. 04, 2021 | Sep. 30, 2021USD ($)$ / shares | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Stock split conversion ratio | 2 | ||||||
Class A Common Stock, par value (in dollars per share) | $ / shares | $ 0.001 | ||||||
Total equity | $ 6,008.7 | $ 5,778.3 | $ 5,451.9 | $ 5,105.2 | $ 4,800.3 | $ 4,596.2 | |
Common Stock | |||||||
Total equity | 0.6 | 0.6 | 0.6 | 0.6 | 0.6 | 0.6 | |
Common Stock | Stock Split [Member] | |||||||
Total equity | 0.3 | 0.3 | 0.3 | 0.3 | |||
Additional Paid in Capital | |||||||
Total equity | 2,289.5 | $ 2,198.9 | 2,068.1 | 1,937.8 | $ 1,834.2 | 1,683 | |
Additional Paid in Capital | Stock Split [Member] | |||||||
Total equity | $ (0.3) | $ (0.3) | $ (0.3) | $ (0.3) | |||
MTS Test & Simulation | |||||||
Maximum expected duration of time (in years) to close on the sale of business from the date of the acquisition | 1 year |
New Accounting Pronouncements (
New Accounting Pronouncements (Details) - The "Revolving Credit Facility" - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
New Accounting Pronouncements | ||
Borrowings under the Revolving Credit Facility | $ 0 | $ 0 |
Revolving Credit Facility | ||
New Accounting Pronouncements | ||
Borrowings under the Revolving Credit Facility | $ 0 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Inventories | ||
Raw materials and supplies | $ 815.2 | $ 587.4 |
Work in process | 535 | 410.7 |
Finished goods | 602.3 | 464.1 |
Inventories | $ 1,952.5 | $ 1,462.2 |
Debt, Schedule of Debt (Details
Debt, Schedule of Debt (Details) € in Millions, $ in Millions | Sep. 30, 2021USD ($) | Sep. 30, 2021EUR (€) | Sep. 14, 2021 | Dec. 31, 2020USD ($) | Apr. 01, 2020 | Feb. 20, 2020 |
Debt | ||||||
Less deferred debt issuance costs | $ (29.4) | $ (27.8) | ||||
Less deferred debt issuance costs, fair value | ||||||
Total debt | 5,248.7 | 3,866.5 | ||||
Less current portion | 298.7 | 230.3 | ||||
Total long-term debt | 4,950 | 3,636.2 | ||||
Total debt, Approximate Fair Value | 5,524 | 4,265.4 | ||||
Less current portion, Fair Value | 299.5 | 234.2 | ||||
Long-term debt, Approximate Fair Value | 5,224.5 | 4,031.2 | ||||
The "Revolving Credit Facility" | Revolving Credit Facility | ||||||
Debt | ||||||
Debt carrying amount, net of unamortized discount or premium before deferred debt issuance costs | 0 | 0 | ||||
Total debt, Approximate Fair Value | 0 | 0 | ||||
U.S. Commercial Paper Program | ||||||
Debt | ||||||
Debt carrying amount, net of unamortized discount or premium before deferred debt issuance costs | 924.3 | 0 | ||||
Total debt, Approximate Fair Value | 924.3 | 0 | ||||
Euro Commercial Paper Program | ||||||
Debt | ||||||
Debt carrying amount, net of unamortized discount or premium before deferred debt issuance costs | 0 | € 0 | 0 | |||
Total debt, Approximate Fair Value | $ 0 | $ 0 | ||||
4.00% Senior Notes due February 2022 | ||||||
Debt | ||||||
Stated interest rate (as a percent) | 4.00% | 4.00% | 4.00% | |||
Debt carrying amount, net of unamortized discount or premium before deferred debt issuance costs | $ 295 | $ 294.9 | ||||
Total debt, Approximate Fair Value | 295.8 | $ 303.6 | ||||
3.125% Senior Notes due September 2021 | ||||||
Debt | ||||||
Stated interest rate (as a percent) | 3.125% | |||||
Debt carrying amount, net of unamortized discount or premium before deferred debt issuance costs | 0 | $ 227.7 | ||||
Total debt, Approximate Fair Value | $ 0 | $ 231.6 | ||||
2.20% Senior Notes due April 2020 | ||||||
Debt | ||||||
Stated interest rate (as a percent) | 2.20% | |||||
3.20% Senior Notes due April 2024 | ||||||
Debt | ||||||
Stated interest rate (as a percent) | 3.20% | 3.20% | 3.20% | |||
Debt carrying amount, net of unamortized discount or premium before deferred debt issuance costs | $ 349.9 | $ 349.8 | ||||
Total debt, Approximate Fair Value | $ 369.6 | $ 378.1 | ||||
2.05% Senior Notes due March 2025 | ||||||
Debt | ||||||
Stated interest rate (as a percent) | 2.05% | 2.05% | 2.05% | 2.05% | ||
Debt carrying amount, net of unamortized discount or premium before deferred debt issuance costs | $ 399.5 | $ 399.4 | ||||
Total debt, Approximate Fair Value | $ 412.4 | $ 420.7 | ||||
0.750% Euro Senior Notes due May 2026 | ||||||
Debt | ||||||
Stated interest rate (as a percent) | 0.75% | 0.75% | 0.75% | |||
Debt carrying amount, net of unamortized discount or premium before deferred debt issuance costs | $ 577.8 | $ 608.4 | ||||
Total debt, Approximate Fair Value | $ 597.5 | $ 633.6 | ||||
2.000% Euro Senior Notes due October 2028 | ||||||
Debt | ||||||
Stated interest rate (as a percent) | 2.00% | 2.00% | 2.00% | |||
Debt carrying amount, net of unamortized discount or premium before deferred debt issuance costs | $ 577.7 | $ 608.4 | ||||
Total debt, Approximate Fair Value | $ 649.1 | $ 694.9 | ||||
4.350% Senior Notes due June 2029 | ||||||
Debt | ||||||
Stated interest rate (as a percent) | 4.35% | 4.35% | 4.35% | |||
Debt carrying amount, net of unamortized discount or premium before deferred debt issuance costs | $ 499.6 | $ 499.6 | ||||
Total debt, Approximate Fair Value | $ 579.2 | $ 608.4 | ||||
2.800% Senior Notes due February 2030 | ||||||
Debt | ||||||
Stated interest rate (as a percent) | 2.80% | 2.80% | 2.80% | |||
Debt carrying amount, net of unamortized discount or premium before deferred debt issuance costs | $ 899.4 | $ 899.4 | ||||
Total debt, Approximate Fair Value | $ 945.6 | 987.8 | ||||
2.200% Senior Notes due September 2031 | ||||||
Debt | ||||||
Stated interest rate (as a percent) | 2.20% | 2.20% | 2.20% | |||
Debt carrying amount, net of unamortized discount or premium before deferred debt issuance costs | $ 747.3 | 0 | ||||
Total debt, Approximate Fair Value | 742.9 | 0 | ||||
Other Debt [Member] | ||||||
Debt | ||||||
Debt carrying amount, net of unamortized discount or premium before deferred debt issuance costs | 7.6 | 6.7 | ||||
Total debt, Approximate Fair Value | $ 7.6 | $ 6.7 |
Debt, Revolving Credit Facility
Debt, Revolving Credit Facility (Details) - The "Revolving Credit Facility" - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Debt | ||
Maximum borrowing capacity | $ 2,500 | |
Borrowings under the Revolving Credit Facility | $ 0 | $ 0 |
Debt instrument, covenant compliance | At September 30, 2021, the Company was in compliance with the financial covenants under the Revolving Credit Facility |
Debt, Commercial Paper (Details
Debt, Commercial Paper (Details) € in Millions, $ in Millions | 9 Months Ended | |||
Sep. 30, 2021USD ($)item | Sep. 30, 2020USD ($) | Sep. 30, 2021EUR (€)item | Dec. 31, 2020USD ($) | |
Debt | ||||
Repayments of long-term debt | $ 616.2 | $ 402.9 | ||
Commercial Paper Programs and Revolving Credit Facility [Member] | ||||
Debt | ||||
Maximum borrowing capacity | $ 2,500 | |||
U.S. Commercial Paper Program | ||||
Debt | ||||
Average interest rate (as a percent) | 0.19% | 0.19% | ||
Debt carrying amount, net of unamortized discount before deferred debt issuance costs | $ 924.3 | $ 0 | ||
Maximum borrowing capacity | $ 2,500 | |||
U.S. Commercial Paper Program | Maximum | ||||
Debt | ||||
Maturity term | 397 days | |||
Euro Commercial Paper Program | ||||
Debt | ||||
Number of wholly-owned subsidiaries that entered into a euro-commercial paper program | item | 1 | 1 | ||
Debt carrying amount, net of unamortized discount before deferred debt issuance costs | $ 0 | € 0 | $ 0 | |
Maximum borrowing capacity | $ 2,000 | |||
Euro Commercial Paper Program | Maximum | ||||
Debt | ||||
Maturity term | 183 days |
Debt, U.S. Senior Notes (Detail
Debt, U.S. Senior Notes (Details) - USD ($) $ in Millions | Sep. 14, 2021 | Apr. 01, 2020 | Feb. 20, 2020 | Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 |
Debt | |||||||
Repayments of long-term debt | $ 616.2 | $ 402.9 | |||||
U.S. Senior Notes | |||||||
Debt | |||||||
Redemption price as a percentage of principal amount | 100.00% | ||||||
Debt instrument, covenant compliance | At September 30, 2021, the Company was in compliance with the financial covenants under its U.S. Senior Notes. | ||||||
2.20% Senior Notes due April 2020 | |||||||
Debt | |||||||
Stated interest rate (as a percent) | 2.20% | ||||||
Repayments of long-term debt | $ 400 | ||||||
4.350% Senior Notes due June 2029 | |||||||
Debt | |||||||
Stated interest rate (as a percent) | 4.35% | 4.35% | 4.35% | ||||
2.800% Senior Notes due February 2030 | |||||||
Debt | |||||||
Stated interest rate (as a percent) | 2.80% | 2.80% | 2.80% | ||||
3.125% Senior Notes due September 2021 | |||||||
Debt | |||||||
Stated interest rate (as a percent) | 3.125% | ||||||
Repayments of long-term debt | $ 227.7 | ||||||
4.00% Senior Notes due February 2022 | |||||||
Debt | |||||||
Stated interest rate (as a percent) | 4.00% | 4.00% | 4.00% | ||||
3.20% Senior Notes due April 2024 | |||||||
Debt | |||||||
Stated interest rate (as a percent) | 3.20% | 3.20% | 3.20% | ||||
2.05% Senior Notes due March 2025 | |||||||
Debt | |||||||
Redemption price as a percentage of principal amount | 100.00% | ||||||
Debt instrument, principal amount | $ 400 | ||||||
Stated interest rate (as a percent) | 2.05% | 2.05% | 2.05% | 2.05% | |||
Debt instrument, face amount, net of discount (as a percent) | 99.829% | ||||||
Debt maturity date | Mar. 1, 2025 | ||||||
2.200% Senior Notes due September 2031 | |||||||
Debt | |||||||
Redemption price as a percentage of principal amount | 100.00% | ||||||
Debt instrument, principal amount | $ 750 | ||||||
Stated interest rate (as a percent) | 2.20% | 2.20% | 2.20% | ||||
Debt instrument, face amount, net of discount (as a percent) | 99.634% | ||||||
Debt maturity date | Sep. 15, 2031 |
Debt, Euro Senior Notes (Detail
Debt, Euro Senior Notes (Details) € in Millions, $ in Millions | May 04, 2020USD ($) | Sep. 30, 2021 | May 04, 2020EUR (€) |
Euro Notes [Member] | |||
Debt | |||
Redemption price as a percentage of principal amount | 100.00% | ||
Debt instrument, covenant compliance | At September 30, 2021, the Company was in compliance with the financial covenants under its Euro Notes | ||
0.750% Euro Senior Notes Due May 2026 [Member] | |||
Debt | |||
Debt instrument, principal amount | $ 545.4 | € 500 | |
Stated interest rate (as a percent) | 0.75% | 0.75% | |
Debt maturity date | May 4, 2026 | ||
Debt instrument, face amount, net of discount (as a percent) | 99.563% | 99.563% | |
Redemption price as a percentage of principal amount | 100.00% | ||
2.000% Euro Senior Notes due October 2028 [Member] | |||
Debt | |||
Stated interest rate (as a percent) | 2.00% |
Fair Value Measurements (Detail
Fair Value Measurements (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2021USD ($)contract | Dec. 31, 2020USD ($) | |
Cash Flow Hedging | ||
Fair value of assets and liabilities measured on recurring basis | ||
Number of forward contracts | contract | 2 | |
Maximum | Cash Flow Hedging | ||
Fair value of assets and liabilities measured on recurring basis | ||
Hedge expiration period | 1 year | |
Fair value measurements recurring basis | ||
Fair value of assets and liabilities measured on recurring basis | ||
Short-term investments | $ 34.4 | $ 36.1 |
Forward contracts | (5.4) | (2.7) |
Total asset | 29 | 33.4 |
Fair value measurements recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair value of assets and liabilities measured on recurring basis | ||
Short-term investments | 34.4 | 36.1 |
Forward contracts | 0 | 0 |
Total asset | 34.4 | 36.1 |
Fair value measurements recurring basis | Significant Observable Inputs (Level 2) | ||
Fair value of assets and liabilities measured on recurring basis | ||
Short-term investments | 0 | 0 |
Forward contracts | (5.4) | (2.7) |
Total liability | (5.4) | (2.7) |
Fair value measurements recurring basis | Significant Unobservable Inputs (Level 3) | ||
Fair value of assets and liabilities measured on recurring basis | ||
Short-term investments | 0 | 0 |
Forward contracts | 0 | 0 |
Total asset | $ 0 | $ 0 |
Income Taxes, Provision and Eff
Income Taxes, Provision and Effective tax rate (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Taxes | ||||
Provision for income taxes | $ (120.5) | $ (99.3) | $ (302.8) | $ (213.3) |
Effective tax rate | 22.20% | 22.10% | 21.20% | 20.00% |
Discrete income tax benefit, tax on foreign income | $ 19.9 | |||
Discrete income tax benefit, impact on effective tax rate | (1.90%) | |||
Tax settlement, amount | $ (14.9) | |||
Tax settlement, effective tax rate | (1.00%) | |||
Excess tax benefit from option exercises | $ 12.3 | $ 10.7 | $ 34.3 | $ 28.1 |
Excess tax benefit, impact on effective tax rate | (2.30%) | (2.40%) | (2.40%) | (2.60%) |
Impact of acquisition-related expenses on the effective tax rate | 0.20% |
Income Taxes, Unrecognized tax
Income Taxes, Unrecognized tax benefits (Details) $ in Millions | Sep. 30, 2021USD ($) |
Income Taxes | |
Unrecognized tax benefits, anticipated adjustment for changing facts and circumstances, over the next twelve month period | $ 6.8 |
Amount for unrecognized tax benefits, including penalties and interest, which if recognized would impact the effective tax rate | $ 157 |
Shareholders' Equity and Nonc_3
Shareholders' Equity and Noncontrolling Interests (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Oct. 20, 2020 | Oct. 19, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Increase (Decrease) In Shareholders' Equity | ||||||
Balance at beginning of period | $ 5,778.3 | $ 4,800.3 | $ 5,451.9 | $ 4,596.2 | ||
Net income | 429.4 | 349.5 | 1,132.7 | 853.1 | ||
Other comprehensive income (loss) | (35.1) | 108.5 | (56.5) | 44 | ||
Acquisitions resulting in noncontrolling interest | 1.8 | 0.3 | ||||
Purchase of noncontrolling interest | (4.8) | (7.3) | ||||
Distributions to shareholders of noncontrolling interests | (3) | (1.9) | (6.5) | (4.2) | ||
Purchase of treasury stock | (170.9) | (201.9) | (491) | (459.2) | ||
Retirement of treasury stock | 0 | 0 | 0 | 0 | ||
Stock options exercised | 75.5 | 106.4 | 180.8 | 258.3 | ||
Dividends declared | (86.7) | (74.7) | (259.9) | (223.2) | ||
Stock-based compensation expense | 21.2 | 19 | 60.2 | 51 | ||
Balance at end of period | $ 6,008.7 | $ 5,105.2 | $ 6,008.7 | $ 5,105.2 | ||
Dividends [Abstract] | ||||||
Dividends declared per share (in dollars per share) | $ 0.145 | $ 0.125 | $ 0.145 | $ 0.125 | $ 0.435 | $ 0.375 |
Common Stock | ||||||
Increase (Decrease) In Shareholders' Equity | ||||||
Balance (in shares) | 599.3 | 597.1 | 600.7 | 597.4 | ||
Balance at beginning of period | $ 0.6 | $ 0.6 | $ 0.6 | $ 0.6 | ||
Retirement of treasury stock | $ 0 | $ 0 | $ 0 | $ 0 | ||
Retirement of treasury stock (in shares) | (2.3) | (1.7) | (6.9) | (7.1) | ||
Stock options exercised | $ 0 | $ 0 | $ 0 | $ 0 | ||
Stock options exercised (in shares) | 2.2 | 3.3 | 5.4 | 8.4 | ||
Balance (in shares) | 599.2 | 598.7 | 599.2 | 598.7 | ||
Balance at end of period | $ 0.6 | $ 0.6 | $ 0.6 | $ 0.6 | ||
Additional Paid in Capital | ||||||
Increase (Decrease) In Shareholders' Equity | ||||||
Balance at beginning of period | 2,198.9 | 1,834.2 | 2,068.1 | 1,683 | ||
Purchase of noncontrolling interest | 2.5 | (2.1) | ||||
Stock options exercised | 69.4 | 84.6 | 158.7 | 205.9 | ||
Stock-based compensation expense | 21.2 | 19 | 60.2 | 51 | ||
Balance at end of period | 2,289.5 | 1,937.8 | 2,289.5 | 1,937.8 | ||
Retained Earnings | ||||||
Increase (Decrease) In Shareholders' Equity | ||||||
Balance at beginning of period | 3,916.4 | 3,419.4 | 3,705.4 | 3,348.4 | ||
Net income | 426.5 | 346.6 | 1,125.8 | 846.4 | ||
Retirement of treasury stock | (170.9) | (91.6) | (471.2) | (348.9) | ||
Stock options exercised | (4.7) | (12.6) | (19.5) | (31.8) | ||
Dividends declared | (86.7) | (74.7) | (259.9) | (223.2) | ||
Balance at end of period | 4,080.6 | 3,587.1 | 4,080.6 | 3,587.1 | ||
Accumulated Other Comprehensive Loss | ||||||
Increase (Decrease) In Shareholders' Equity | ||||||
Balance at beginning of period | (300.3) | (494.6) | (278.1) | (430.9) | ||
Other comprehensive income (loss) | (35.2) | 106.2 | (57.4) | 42.5 | ||
Balance at end of period | (335.5) | (388.4) | (335.5) | (388.4) | ||
Treasury Stock | ||||||
Increase (Decrease) In Shareholders' Equity | ||||||
Balance at beginning of period | $ (100.1) | $ (21) | $ (111.1) | $ (70.8) | ||
Balance (in shares) | (1.8) | (0.5) | (2) | (1.6) | ||
Purchase of treasury stock | $ (170.9) | $ (201.9) | $ (491) | $ (459.2) | ||
Purchase of treasury stock (in shares) | (2.3) | (3.7) | (7.2) | (9.1) | ||
Retirement of treasury stock | $ 170.9 | $ 91.6 | $ 471.2 | $ 348.9 | ||
Retirement of treasury stock (in shares) | 2.3 | 1.7 | 6.9 | 7.1 | ||
Stock options exercised | $ 10.8 | $ 34.4 | $ 41.6 | $ 84.2 | ||
Stock options exercised (in shares) | 0.2 | 0.7 | 0.7 | 1.8 | ||
Balance at end of period | $ (89.3) | $ (96.9) | $ (89.3) | $ (96.9) | ||
Balance (in shares) | (1.6) | (1.8) | (1.6) | (1.8) | ||
Noncontrolling Interests | ||||||
Increase (Decrease) In Shareholders' Equity | ||||||
Balance at beginning of period | $ 62.8 | $ 61.7 | $ 67 | $ 65.9 | ||
Net income | 2.9 | 2.9 | 6.9 | 6.7 | ||
Other comprehensive income (loss) | 0.1 | 2.3 | 0.9 | 1.5 | ||
Acquisitions resulting in noncontrolling interest | 1.8 | 0.3 | ||||
Purchase of noncontrolling interest | (7.3) | (5.2) | ||||
Distributions to shareholders of noncontrolling interests | (3) | (1.9) | (6.5) | (4.2) | ||
Balance at end of period | $ 62.8 | $ 65 | $ 62.8 | 65 | ||
Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-13 | ||||||
Increase (Decrease) In Shareholders' Equity | ||||||
Balance at beginning of period | (3.8) | |||||
Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-13 | Retained Earnings | ||||||
Increase (Decrease) In Shareholders' Equity | ||||||
Balance at beginning of period | $ (3.8) |
Shareholders' Equity and Nonc_4
Shareholders' Equity and Noncontrolling Interests, Stock Repurchase (Details) - USD ($) $ / shares in Units, $ in Millions | Apr. 27, 2021 | Apr. 24, 2018 | Oct. 26, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | May 21, 2021 |
Shareholders' Equity | ||||||||
Treasury stock retired (in dollars) | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Payments for shares repurchased and retained in treasury (in dollars) | $ 170.9 | $ 201.9 | $ 491 | $ 459.2 | ||||
Class A Common Stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | ||||||
Class A Common Stock, shares authorized | 2,000,000,000 | |||||||
Increase in common stock shares authorized | 1,000,000,000 | |||||||
2021 Stock Repurchase Program | ||||||||
Shareholders' Equity | ||||||||
Value of shares authorized to be repurchased (in dollars) | $ 2,000 | |||||||
Repurchase of stock program, period | 3 years | |||||||
Number of shares repurchased and retired | 2,300,000 | 4,100,000 | ||||||
Payments for shares repurchased and retired (in dollars) | $ 170.9 | $ 287.2 | ||||||
2018 Stock Repurchase Program | ||||||||
Shareholders' Equity | ||||||||
Value of shares authorized to be repurchased (in dollars) | $ 2,000 | |||||||
Repurchase of stock program, period | 3 years | |||||||
Number of shares repurchased | 3,700,000 | 3,100,000 | 9,100,000 | |||||
Payments for shares repurchased (in dollars) | $ 201.9 | $ 203.8 | $ 459.2 | |||||
Number of shares repurchased and retained in treasury | 300,000 | 2,000,000 | ||||||
Payments for shares repurchased and retained in treasury (in dollars) | $ 19.8 | $ 110.3 | ||||||
Number of shares repurchased and retired | 2,800,000 | 7,100,000 | ||||||
Payments for shares repurchased and retired (in dollars) | $ 184 | $ 348.9 | ||||||
Subsequent Event | 2021 Stock Repurchase Program | ||||||||
Shareholders' Equity | ||||||||
Number of shares repurchased and retained in treasury | 600,000 | |||||||
Payments for shares repurchased and retained in treasury (in dollars) | $ 46.1 | |||||||
Value of shares remaining that may be repurchased under the stock repurchase program (in dollars) | $ 1,666.6 |
Shareholders' Equity and Nonc_5
Shareholders' Equity and Noncontrolling Interests, Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | Oct. 26, 2021 | Oct. 25, 2021 | Oct. 20, 2020 | Oct. 19, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Dividends declared per share (in dollars per share) | $ 0.145 | $ 0.125 | $ 0.145 | $ 0.125 | $ 0.435 | $ 0.375 | ||
Dividends declared | $ 86.7 | $ 74.7 | $ 259.9 | $ 223.2 | ||||
Dividends paid (including those declared in the prior year) | $ 86.6 | $ 74.6 | $ 260 | $ 223 | ||||
Subsequent Event | ||||||||
Dividends declared per share (in dollars per share) | $ 0.20 | $ 0.145 |
Stock-Based Compensation, Stock
Stock-Based Compensation, Stock-based Comp Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Stock-Based Compensation | ||||
Expense incurred for stock-based compensation plans | $ 21.2 | $ 19 | $ 60.2 | $ 51 |
Recognized tax benefit related to stock-based compensation | 14 | 12.7 | 40.4 | 33.8 |
Excess tax benefit from option exercises | $ 12.3 | $ 10.7 | $ 34.3 | $ 28.1 |
Stock-Based Compensation, Sto_2
Stock-Based Compensation, Stock Options (Details) - shares | May 19, 2021 | Sep. 30, 2021 | May 18, 2021 |
2009 Employee Option Plan | |||
Stock-Based Compensation | |||
Additional shares available for the granting of stock options | 0 | ||
Options ratable vesting period | 5 years | ||
Options exercisable period | 10 years | ||
2017 Option Plan | |||
Stock-Based Compensation | |||
Additional shares available for the granting of stock options | 40,000,000 | ||
Number of shares originally authorized for issuance of stock options under stock option plan | 60,000,000 | ||
Remaining shares available for the granting of stock options under plan | 43,038,110 | ||
Options ratable vesting period | 5 years | ||
Options exercisable period | 10 years |
Stock-Based Compensation, Sto_3
Stock-Based Compensation, Stock Option Activity (Details) - Stock Options - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
Stock option activity | |||||
Options outstanding at the beginning of the period (in shares) | 71,698,138 | 67,411,970 | 67,985,648 | 67,985,648 | |
Non-vested options, options granted (in shares) | 95,400 | 7,215,100 | 215,080 | ||
Options exercised (in shares) | (2,494,842) | (2,882,332) | (757,598) | ||
Options forfeited (in shares) | (200,890) | (46,600) | (31,160) | ||
Options outstanding at the end of the period (in shares) | 69,097,806 | 71,698,138 | 67,411,970 | 69,097,806 | 67,985,648 |
Vested and non-vested options expected to vest at the end of the period (in shares) | 65,684,351 | 65,684,351 | |||
Exercisable at the end of the period (in shares) | 37,432,076 | 37,432,076 | |||
Weighted Average Exercise Price | |||||
Weighted average exercise price, options outstanding at the beginning of the period (in dollars per share) | $ 41.01 | $ 37.77 | $ 37.58 | $ 37.58 | |
Weighted average exercise price, options granted (in dollars per share) | 71.64 | 66.62 | 64.69 | ||
Weighted average exercise price, options exercised (in dollars per share) | 30.30 | 29.14 | 28.12 | ||
Weighted average exercise price, options forfeited (in dollars per share) | 48.28 | 49.05 | 42.37 | ||
Weighted average exercise price, options outstanding at the end of the period (in dollars per share) | 41.42 | $ 41.01 | $ 37.77 | 41.42 | $ 37.58 |
Weighted average exercise price, vested and non-vested options expected to vest (in dollars per share) | 41.03 | 41.03 | |||
Weighted average exercise price, exercisable (in dollars per share) | $ 34.81 | $ 34.81 | |||
Weighted Average Remaining Contractual Term | |||||
Weighted average remaining contractual term of options outstanding | 6 years 7 months 6 days | 6 years 9 months 7 days | 6 years 6 months 25 days | 6 years 9 months 14 days | |
Weighted average remaining contractual term of options vested options and non-vested expected to vest | 6 years 6 months 7 days | ||||
Weighted average remaining contractual term of options exercisable | 5 years 3 months 29 days | ||||
Aggregate Intrinsic Value | |||||
Aggregate intrinsic value of options outstanding | $ 2,198 | $ 1,964.3 | $ 1,901 | $ 2,198 | $ 1,890.4 |
Aggregate intrinsic value of options, vested and non-vested options expected to vest | 2,114.9 | 2,114.9 | |||
Aggregate intrinsic value of options exercisable | $ 1,438.1 | $ 1,438.1 |
Stock-Based Compensation, Non-V
Stock-Based Compensation, Non-Vested Stock Option Activity (Details) - Stock Options - $ / shares | 3 Months Ended | ||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | |
Status of the Company's non-vested options and changes during the year | |||
Non-vested options at the beginning of the period (in shares) | 31,905,220 | 37,082,020 | 36,989,300 |
Non-vested options, options granted (in shares) | 95,400 | 7,215,100 | 215,080 |
Non-vested options, options vested (in shares) | (134,000) | (12,345,300) | (91,200) |
Non-vested options, options forfeited (in shares) | (200,890) | (46,600) | (31,160) |
Non-vested options at the end of the period (in shares) | 31,665,730 | 31,905,220 | 37,082,020 |
Weighted Average Fair Value at Grant Date | |||
Weighted average fair value at the grant date, options outstanding at the beginning of the period (in dollars per share) | $ 8.30 | $ 6.46 | $ 6.43 |
Weighted average fair value at grant date, options granted (in dollars per share) | 14.19 | 13.29 | 12.11 |
Weighted average fair value at grant date, options vested (in dollars per share) | 4.76 | 5.70 | 3.88 |
Weighted average fair value at grant date, options forfeited (in dollars per share) | 8.09 | 7.97 | 5.77 |
Weighted average fair value at the grant date, options outstanding at the end of the period (in dollars per share) | $ 8.33 | $ 8.30 | $ 6.46 |
Stock-Based Compensation, Optio
Stock-Based Compensation, Option Plans (Details) - Stock Options - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Stock-Based Compensation | ||||
Total intrinsic value of stock options exercised (in dollars) | $ 108.1 | $ 107.6 | $ 246.5 | $ 277.9 |
Total fair value of stock options vested (in dollars) | 0.6 | $ 0.8 | 71.4 | $ 62.1 |
Total compensation cost related to non-vested options not yet recognized (in dollars) | $ 216.1 | $ 216.1 | ||
Weighted average expected amortization period | 3 years 6 months 14 days |
Stock-Based Compensation, Restr
Stock-Based Compensation, Restricted Shares (Details) - Restricted Shares - 2012 Directors Restricted Stock Plan - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
Stock-Based Compensation | |||||
Remaining shares available for the granting of stock options under plan | 141,359 | 141,359 | |||
Restricted share activity | |||||
Restricted shares outstanding at the beginning of the period (in shares) | 19,224 | 26,350 | 26,350 | 26,350 | |
Shares vested and issued (in shares) | (27,272) | ||||
Restricted shares granted (in shares) | 1,837 | 20,146 | 0 | ||
Restricted shares outstanding at the end of the period (in shares) | 21,061 | 19,224 | 26,350 | 21,061 | 26,350 |
Fair Value at Grant Date | |||||
Fair value at the grant date, restricted shares outstanding at the beginning of the period (in dollars per share) | $ 66.59 | $ 45.55 | $ 45.55 | $ 45.55 | |
Fair value of restricted shares vested and issued (in dollars per share) | 45.80 | ||||
Fair value of restricted shares granted (in dollars per share) | 70.39 | 65.96 | 0 | ||
Fair value at the grant date, restricted shares outstanding at the end of the period (in dollars per share) | $ 66.92 | $ 66.59 | $ 45.55 | $ 66.92 | $ 45.55 |
Weighted Average Remaining Amortization Term (in years) | 7 months 13 days | 10 months 17 days | 1 month 17 days | 4 months 17 days | |
Total compensation cost related to non-vested restricted shares not yet recognized (in dollars) | $ 0.9 | $ 0.9 | |||
Weighted average expected amortization period | 7 months 13 days |
Earnings Per Share, Reconciliat
Earnings Per Share, Reconciliation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share | ||||
Net income from continuing operations attributable to Amphenol Corporation | $ 418.8 | $ 346.6 | $ 1,115.5 | $ 846.4 |
Income from discontinued operations attributable to Amphenol Corporation, net of income taxes of ($1.5) and ($1.8) for 2021, respectively | 7.7 | 0 | 10.3 | 0 |
Income taxes on income from discontinued operations attributable to Amphenol Corporation | 1.5 | 1.8 | ||
Net income attributable to Amphenol Corporation | $ 426.5 | $ 346.6 | $ 1,125.8 | $ 846.4 |
Weighted average common shares outstanding - Basic (in shares) | 597.7 | 597.5 | 597.8 | 595.2 |
Effect of dilutive stock options (in shares) | 28.1 | 18.9 | 26.8 | 17.3 |
Weighted average common shares outstanding - Diluted (in shares) | 625.8 | 616.4 | 624.6 | 612.5 |
Net income (loss) per common share attributable to Amphenol Corporation - Basic: | ||||
Continuing operations | $ 0.70 | $ 0.58 | $ 1.87 | $ 1.42 |
Discontinued operations, net of income taxes | 0.01 | 0 | 0.02 | 0 |
Net income attributable to Amphenol Corporation - Basic | 0.71 | 0.58 | 1.88 | 1.42 |
Net income (loss) per common share attributable to Amphenol Corporation - Diluted: | ||||
Continuing operations | 0.67 | 0.56 | 1.79 | 1.38 |
Discontinued operations, net of income taxes | 0.01 | 0 | 0.02 | 0 |
Net income attributable to Amphenol Corporation - Diluted | $ 0.68 | $ 0.56 | $ 1.80 | $ 1.38 |
Anti-dilutive common shares | ||||
Anti-dilutive stock options, excluded from the computations of earnings per share (in shares) | 7.4 | 9.2 | 3.8 | 12.2 |
Benefit Plans and Other Postr_3
Benefit Plans and Other Postretirement Benefits, Net pension expense (Details) - Pension Benefits - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Components of net pension expense: | ||||
Service cost | $ 1.9 | $ 1.9 | $ 5.6 | $ 5.6 |
Interest cost | 2.8 | 4.2 | 8.4 | 12.5 |
Expected return on plan assets | (7.8) | (9.3) | (23.4) | (27.8) |
Amortization of prior service cost | 0.5 | 0.5 | 1.5 | 1.6 |
Amortization of net actuarial losses | 6.2 | 6.3 | 18.7 | 18.8 |
Net pension expense | 3.6 | $ 3.6 | 10.8 | $ 10.7 |
United States | ||||
Defined Benefit Plan Disclosure | ||||
Estimated future employer contribution in fiscal year | $ 0 | $ 0 | ||
Weighted average assumptions used to determine net periodic benefit cost/expense: | ||||
Expected long-term return on assets (as a percent) | 6.00% |
Benefit Plans and Other Postr_4
Benefit Plans and Other Postretirement Benefits, Defined contribution plans (Details) - United States - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Defined Contribution Plan Disclosure | ||
Contributions to U.S. defined contribution plans by the Company, maximum percentage of eligible compensation | 6.00% | |
Matching contributions to U.S. defined contribution plans by the Company | $ 12.1 | $ 10 |
Acquisitions (Details)
Acquisitions (Details) $ / shares in Units, $ in Millions | Apr. 07, 2021USD ($) | Sep. 30, 2021USD ($)agreement | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)agreementsegment | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($)contractsegment | Dec. 09, 2020$ / shares |
Acquisitions | |||||||
Number of reportable business segments | segment | 2 | ||||||
Number of acquisitions | agreement | 6 | ||||||
Acquisition-related expenses | $ 0 | $ 0 | $ 55.4 | $ 0 | |||
Purchase price, net of cash acquired | 1,531 | $ 50.3 | |||||
Goodwill | 5,839.4 | 5,839.4 | $ 5,032.1 | ||||
MTS Systems Corporation and Other 2021 Acquisitions [Member] | |||||||
Acquisitions | |||||||
Acquisition-related expenses | 55.4 | ||||||
Acquisition-related expenses, net of tax | $ 44.6 | ||||||
MTS Systems Corporation | |||||||
Acquisitions | |||||||
Business Acquisition, Date of Acquisition Agreement | Dec. 9, 2020 | ||||||
Business acquisition, effective date | Apr. 7, 2021 | ||||||
Number of reportable business segments | segment | 2 | ||||||
Purchase price, net of cash acquired | $ 1,300 | ||||||
Acquisition price per share | $ / shares | $ 58.50 | ||||||
Goodwill deductible for tax purposes | 0 | $ 0 | |||||
Senior note assumed in business acquisition | 350 | ||||||
Senior note assumed from business acquisition and repaid and settled shortly after closing, including accrued interest and make-whole premium | $ 387.3 | ||||||
Deferred tax liability | 61 | 61 | |||||
MTS Sensors [Member] | |||||||
Acquisitions | |||||||
Goodwill | 720.4 | 720.4 | |||||
Indefinite-lived intangible assets | 54 | ||||||
Definite-lived intangible assets | 183.4 | ||||||
Customer relationships | MTS Sensors [Member] | |||||||
Acquisitions | |||||||
Definite-lived intangible assets | $ 128.1 | ||||||
Useful lives | 11 years | ||||||
Proprietary technology | MTS Sensors [Member] | |||||||
Acquisitions | |||||||
Definite-lived intangible assets | $ 39.1 | ||||||
Useful lives | 15 years | ||||||
Backlog | MTS Sensors [Member] | |||||||
Acquisitions | |||||||
Definite-lived intangible assets | $ 16.2 | ||||||
Useful lives | 3 months | ||||||
Cable Products and Solutions | |||||||
Acquisitions | |||||||
Number of acquisitions | agreement | 1 | ||||||
Goodwill | 169 | $ 169 | $ 157.6 | ||||
Interconnect Products and Assemblies | |||||||
Acquisitions | |||||||
Number of acquisitions | 5 | 2 | |||||
Purchase price, net of cash acquired | $ 50 | ||||||
Goodwill | $ 5,670.4 | $ 5,670.4 | $ 4,874.5 | ||||
Number of acquisitions for which acquisition accounting has been completed | agreement | 2 | 2 |
Discontinued Operations (Detail
Discontinued Operations (Details) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021USD ($)segment | Dec. 31, 2020USD ($)segment | Jan. 19, 2021USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of reportable segments | segment | 2 | ||
Current assets held for sale | $ 1,068.2 | $ 0 | |
Current liabilities held for sale | $ 207.4 | $ 0 | |
MTS Test & Simulation | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Maximum expected duration of time (in years) to close on the sale of business from the date of the acquisition | 1 year | ||
Disposal group, consideration | $ 750 | ||
MTS Systems Corporation | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of reportable segments | segment | 2 | ||
Contingent consideration | $ 28.7 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, Goodwill (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Goodwill. | |
Goodwill, Beginning Balance | $ 5,032.1 |
Acquisition-related | 868.4 |
Foreign currency translation | (61.1) |
Goodwill, Ending Balance | 5,839.4 |
Interconnect Products and Assemblies | |
Goodwill. | |
Goodwill, Beginning Balance | 4,874.5 |
Acquisition-related | 856.9 |
Foreign currency translation | (61) |
Goodwill, Ending Balance | 5,670.4 |
Cable Products and Solutions | |
Goodwill. | |
Goodwill, Beginning Balance | 157.6 |
Acquisition-related | 11.5 |
Foreign currency translation | (0.1) |
Goodwill, Ending Balance | $ 169 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, Goodwill Impairment Results (Details) $ in Millions | Jul. 01, 2021USD ($) | Sep. 30, 2021USD ($)segment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Goodwill and Other Intangible Assets | ||||
Goodwill impairment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Number of reporting units | segment | 2 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets, Intangible Assets (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Intangible Assets | ||
Weighted average useful lives of acquired amortizable intangible assets | 9 years | |
Gross Carrying Amount (definite-lived) | $ 873.3 | $ 662.5 |
Accumulated Amortization | 509.8 | 451.1 |
Net Carrying Amount, (definite-lived) | 363.5 | 211.4 |
Indefinite-lived trade name intangible asset | 240.1 | 186.1 |
Intangible assets, gross (excluding goodwill) | 1,113.4 | 848.6 |
Net Carrying Amount, intangible assets | $ 603.6 | 397.5 |
Customer relationships | ||
Intangible Assets | ||
Weighted average useful lives of acquired amortizable intangible assets | 10 years | |
Gross Carrying Amount (definite-lived) | $ 612.2 | 456.6 |
Accumulated Amortization | 346.1 | 313.6 |
Net Carrying Amount, (definite-lived) | $ 266.1 | 143 |
Proprietary technology | ||
Intangible Assets | ||
Weighted average useful lives of acquired amortizable intangible assets | 12 years | |
Gross Carrying Amount (definite-lived) | $ 195.2 | 156.2 |
Accumulated Amortization | 98.1 | 88.1 |
Net Carrying Amount, (definite-lived) | $ 97.1 | 68.1 |
Backlog and other | ||
Intangible Assets | ||
Weighted average useful lives of acquired amortizable intangible assets | 1 year | |
Gross Carrying Amount (definite-lived) | $ 65.9 | 49.7 |
Accumulated Amortization | 65.6 | 49.4 |
Net Carrying Amount, (definite-lived) | $ 0.3 | $ 0.3 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets, Amortization (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Intangible assets | ||||
Amortization expense | $ 16.4 | $ 12.3 | $ 61.3 | $ 37.6 |
Amortization expense estimated for each of the next five fiscal years | ||||
Remainder of 2021 | 15.6 | 15.6 | ||
2022 | 57.3 | 57.3 | ||
2023 | 54.5 | 54.5 | ||
2024 | 48.8 | 48.8 | ||
2025 | 39.4 | 39.4 | ||
2026 | $ 37.7 | 37.7 | ||
MTS Sensors [Member] | Backlog | ||||
Intangible assets | ||||
Amortization expense | $ 16.2 |
Goodwill and Other Intangible_7
Goodwill and Other Intangible Assets, Intangible asset impairment results (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Other Intangible Assets | |||
Impairment of intangible assets | $ 0 | $ 0 | $ 0 |
Reportable Business Segments, S
Reportable Business Segments, Segment Results (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)segment | Sep. 30, 2020USD ($) | |
Segment reporting information | ||||
Number of reportable business segments | segment | 2 | |||
Net sales | $ 2,818.5 | $ 2,323.4 | $ 7,849.5 | $ 6,172.9 |
Operating income | 571.2 | 475.8 | 1,512.2 | 1,150.1 |
Interconnect Products and Assemblies | ||||
Segment reporting information | ||||
Net sales | 2,699.2 | 2,221.9 | 7,520.5 | 5,899.4 |
Cable Products and Solutions | ||||
Segment reporting information | ||||
Net sales | 119.3 | 101.5 | 329 | 273.5 |
Operating Segment | ||||
Segment reporting information | ||||
Net sales | 2,818.5 | 2,323.4 | 7,849.5 | 6,172.9 |
Operating income | 607.9 | 509.3 | 1,672.3 | 1,243.3 |
Operating Segment | Interconnect Products and Assemblies | ||||
Segment reporting information | ||||
Net sales | 2,699.2 | 2,221.9 | 7,520.5 | 5,899.4 |
Operating income | 603.3 | 498.4 | 1,652.3 | 1,217.6 |
Operating Segment | Cable Products and Solutions | ||||
Segment reporting information | ||||
Net sales | 119.3 | 101.5 | 329 | 273.5 |
Operating income | 4.6 | 10.9 | 20 | 25.7 |
Operating Segment | Corporate and Other | ||||
Segment reporting information | ||||
Net sales | 0 | 0 | 0 | 0 |
Inter-Segment | ||||
Segment reporting information | ||||
Net sales | 49.7 | 28 | 120.3 | 66.7 |
Inter-Segment | Interconnect Products and Assemblies | ||||
Segment reporting information | ||||
Net sales | 34.4 | 18.4 | 79.1 | 39.4 |
Inter-Segment | Cable Products and Solutions | ||||
Segment reporting information | ||||
Net sales | 15.3 | 9.6 | 41.2 | 27.3 |
Inter-Segment | Corporate and Other | ||||
Segment reporting information | ||||
Net sales | $ 0 | $ 0 | $ 0 | $ 0 |
Reportable Business Segments, R
Reportable Business Segments, Reconciliation of Segment Operating Income to Consolidated Income Before Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information | ||||
Operating income | $ 571.2 | $ 475.8 | $ 1,512.2 | $ 1,150.1 |
Stock-based compensation expense | (21.2) | (19) | (60.2) | (51) |
Acquisition-related expenses | 0 | 0 | (55.4) | 0 |
Other operating expenses | (15.5) | (14.5) | (44.5) | (42.2) |
Interest expense | (29) | (28) | (86.7) | (87.1) |
Other income (expense), net | 0 | 1 | (0.3) | 3.4 |
Income from continuing operations before income taxes | 542.2 | 448.8 | 1,425.2 | 1,066.4 |
Operating Segment | ||||
Segment Reporting Information | ||||
Operating income | $ 607.9 | $ 509.3 | $ 1,672.3 | $ 1,243.3 |
Revenue Recognition (Details)
Revenue Recognition (Details) - item | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue recognition | ||||
Remaining performance obligation, expected timing for substantial portion of performance obligations | 3 months | |||
Practical expedient, performance obligation | true | |||
Minimum | ||||
Revenue recognition | ||||
Number of reporting periods that may be extended across for multiple delivery dates | 1 | |||
Maximum | ||||
Revenue recognition | ||||
Percentage of net sales recognized over time | 5.00% | 5.00% | 5.00% | 5.00% |
Remaining performance obligation, expected timing for nearly all performance obligations | 1 year |
Revenue Recognition, Disaggrega
Revenue Recognition, Disaggregation of Net Sales (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue recognition | ||||
Net sales | $ 2,818.5 | $ 2,323.4 | $ 7,849.5 | $ 6,172.9 |
United States | ||||
Revenue recognition | ||||
Net sales | 830 | 668.8 | 2,283 | 1,854 |
China | ||||
Revenue recognition | ||||
Net sales | 778.8 | 720.8 | 2,129.9 | 1,782.9 |
Other foreign locations | ||||
Revenue recognition | ||||
Net sales | 1,209.7 | 933.8 | 3,436.6 | 2,536 |
End customers and contract manufacturers | ||||
Revenue recognition | ||||
Net sales | 2,324 | 1,958.7 | 6,524.3 | 5,164.3 |
Distributors and resellers | ||||
Revenue recognition | ||||
Net sales | 494.5 | 364.7 | 1,325.2 | 1,008.6 |
Interconnect Products and Assemblies | ||||
Revenue recognition | ||||
Net sales | 2,699.2 | 2,221.9 | 7,520.5 | 5,899.4 |
Interconnect Products and Assemblies | United States | ||||
Revenue recognition | ||||
Net sales | 760.2 | 607.8 | 2,103.6 | 1,695.1 |
Interconnect Products and Assemblies | China | ||||
Revenue recognition | ||||
Net sales | 775.8 | 719 | 2,121.1 | 1,778.6 |
Interconnect Products and Assemblies | Other foreign locations | ||||
Revenue recognition | ||||
Net sales | 1,163.2 | 895.1 | 3,295.8 | 2,425.7 |
Interconnect Products and Assemblies | End customers and contract manufacturers | ||||
Revenue recognition | ||||
Net sales | 2,222.9 | 1,872.9 | 6,248.8 | 4,935.6 |
Interconnect Products and Assemblies | Distributors and resellers | ||||
Revenue recognition | ||||
Net sales | 476.3 | 349 | 1,271.7 | 963.8 |
Cable Products and Solutions | ||||
Revenue recognition | ||||
Net sales | 119.3 | 101.5 | 329 | 273.5 |
Cable Products and Solutions | United States | ||||
Revenue recognition | ||||
Net sales | 69.8 | 61 | 179.4 | 158.9 |
Cable Products and Solutions | China | ||||
Revenue recognition | ||||
Net sales | 3 | 1.8 | 8.8 | 4.3 |
Cable Products and Solutions | Other foreign locations | ||||
Revenue recognition | ||||
Net sales | 46.5 | 38.7 | 140.8 | 110.3 |
Cable Products and Solutions | End customers and contract manufacturers | ||||
Revenue recognition | ||||
Net sales | 101.1 | 85.8 | 275.5 | 228.7 |
Cable Products and Solutions | Distributors and resellers | ||||
Revenue recognition | ||||
Net sales | $ 18.2 | $ 15.7 | $ 53.5 | $ 44.8 |
Commitments and Contingencies (
Commitments and Contingencies (Details) € in Millions | 9 Months Ended | 11 Months Ended |
Sep. 30, 2021EUR (€) | Oct. 31, 2020lawsuit | |
Commitments and Contingencies | ||
Number of lawsuits | lawsuit | 4 | |
Domicile of litigation | Indiana | |
Customer's claimed damages that is subject to arbitrator discretion to determine actual amount of damages and apportionment of responsibility | € | € 90 |