Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Oct. 02, 2016 | Nov. 04, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Oct. 2, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | BDC | |
Entity Registrant Name | BELDEN INC. | |
Entity Central Index Key | 913,142 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 42,144,409 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 02, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 748,305 | $ 216,751 |
Receivables, net | 400,528 | 387,386 |
Inventories, net | 193,500 | 195,942 |
Other current assets | 55,345 | 37,079 |
Total current assets | 1,397,678 | 837,158 |
Property, plant and equipment, less accumulated depreciation | 323,110 | 310,629 |
Goodwill | 1,399,847 | 1,385,115 |
Intangible assets, less accumulated amortization | 590,785 | 655,871 |
Deferred income taxes | 30,596 | 34,295 |
Other long-lived assets | 69,947 | 67,534 |
Total assets | 3,811,963 | 3,290,602 |
Current liabilities: | ||
Accounts payable | 220,827 | 223,514 |
Accrued liabilities | 294,209 | 323,249 |
Current maturities of long-term debt | 2,500 | 2,500 |
Total current liabilities | 517,536 | 549,263 |
Long-term debt | 1,690,932 | 1,725,282 |
Postretirement benefits | 106,779 | 105,230 |
Deferred income taxes | 45,381 | 46,034 |
Other long-term liabilities | 38,283 | 39,270 |
Stockholders’ equity: | ||
Preferred stock | 1 | 0 |
Common stock | 503 | 503 |
Additional paid-in capital | 1,114,348 | 605,660 |
Retained earnings | 760,688 | 679,716 |
Accumulated other comprehensive loss | (62,876) | (58,987) |
Treasury stock | (400,718) | (402,793) |
Total Belden stockholders’ equity | 1,411,946 | 824,099 |
Noncontrolling interest | 1,106 | 1,424 |
Total stockholders’ equity | 1,413,052 | 825,523 |
Total liabilities and stockholders' equity | $ 3,811,963 | $ 3,290,602 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2016 | Sep. 27, 2015 | Oct. 02, 2016 | Sep. 27, 2015 | |
Income Statement [Abstract] | ||||
Revenues | $ 601,109 | $ 579,266 | $ 1,744,237 | $ 1,711,978 |
Cost of sales | (355,147) | (353,135) | (1,025,027) | (1,043,922) |
Gross profit | 245,962 | 226,131 | 719,210 | 668,056 |
Selling, general and administrative expenses | (126,662) | (127,792) | (372,125) | (395,424) |
Research and development | (33,512) | (38,168) | (106,297) | (110,999) |
Amortization of intangibles | (23,808) | (25,669) | (75,603) | (78,090) |
Operating income | 61,980 | 34,502 | 165,185 | 83,543 |
Interest expense, net | (23,513) | (25,416) | (71,958) | (74,031) |
Income from continuing operations before taxes | 38,467 | 9,086 | 93,227 | 9,512 |
Income tax benefit (expense) | (2,902) | 5,725 | 513 | 7,340 |
Income from continuing operations | 35,565 | 14,811 | 93,740 | 16,852 |
Loss from discontinued operations, net of tax | 0 | (242) | 0 | (242) |
Loss from disposal of discontinued operations, net of tax | 0 | 0 | 0 | (86) |
Net income | 35,565 | 14,569 | 93,740 | 16,524 |
Less: Net loss attributable to noncontrolling interest | (88) | 0 | (286) | 0 |
Net income attributable to Belden | 35,653 | 14,569 | 94,026 | 16,524 |
Less: Preferred stock dividends | 6,695 | 0 | 6,695 | 0 |
Net income attributable to Belden common stockholders | $ 28,958 | $ 14,569 | $ 87,331 | $ 16,524 |
Weighted average number of common shares and equivalents: | ||||
Basic (in shares) | 42,126 | 42,417 | 42,073 | 42,536 |
Diluted (in shares) | 42,601 | 42,908 | 42,532 | 43,117 |
Basic income (loss) per share attributable to Belden common stockholders: | ||||
Continuing operations (in usd per share) | $ 0.69 | $ 0.35 | $ 2.08 | $ 0.40 |
Discontinued operations (in usd per share) | 0 | (0.01) | 0 | (0.01) |
Disposal of discontinued operations (in usd per share) | 0 | 0 | 0 | 0 |
Net income (in usd per share) | 0.69 | 0.34 | 2.08 | 0.39 |
Diluted income (loss) per share attributable to Belden common stockholders: | ||||
Continuing operations (in usd per share) | 0.68 | 0.35 | 2.05 | 0.39 |
Discontinued operations (in usd per share) | 0 | (0.01) | 0 | (0.01) |
Disposal of discontinued operations (in usd per share) | 0 | 0 | 0 | 0 |
Net income (in usd per share) | $ 0.68 | $ 0.34 | $ 2.05 | $ 0.38 |
Comprehensive income (loss) attributable to Belden | $ 31,846 | $ (9,803) | $ 90,137 | $ 4,036 |
Dividends declared per share (in usd per share) | $ 0.05 | $ 0.05 | $ 0.15 | $ 0.15 |
Condensed Consolidated Cash Flo
Condensed Consolidated Cash Flow Statements (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 02, 2016 | Sep. 27, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 93,740 | $ 16,524 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 110,857 | 113,141 |
Share-based compensation | 13,943 | 13,814 |
Tax benefit related to share-based compensation | (623) | (5,064) |
Changes in operating assets and liabilities, net of the effects of currency exchange rate changes and acquired businesses: | ||
Receivables | (9,843) | (6,532) |
Inventories | 5,626 | 7,979 |
Accounts payable | (3,889) | (55,973) |
Accrued liabilities | (43,594) | 29,354 |
Accrued taxes | (16,752) | (23,884) |
Other assets | 2,798 | 1,935 |
Other liabilities | (5,457) | 687 |
Net cash provided by operating activities | 146,806 | 91,981 |
Cash flows from investing activities: | ||
Capital expenditures | (36,057) | (39,106) |
Cash used to acquire businesses, net of cash acquired | (17,848) | (695,345) |
Proceeds from disposal of tangible assets | 282 | 145 |
Proceeds from disposable of business | 0 | 3,527 |
Other | (971) | 0 |
Net cash used for investing activities | (54,594) | (730,779) |
Cash flows from financing activities: | ||
Proceeds from issuance of preferred stock, net | 501,498 | 0 |
Tax benefit related to share-based compensation | 623 | 5,064 |
Borrowings under credit arrangements | 0 | 200,000 |
Payments under borrowing arrangements | (51,875) | (1,250) |
Dividends paid on common stock | (6,307) | (6,386) |
Withholding tax payments for share-based payment awards, net of proceeds from the exercise of stock options | (5,302) | (11,517) |
Debt issuance costs paid | 0 | (643) |
Payments under share repurchase program | 0 | (39,053) |
Net cash provided by financing activities | 438,637 | 146,215 |
Effect of foreign currency exchange rate changes on cash and cash equivalents | 705 | (6,682) |
Increase (decrease) in cash and cash equivalents | 531,554 | (499,265) |
Cash and cash equivalents, beginning of period | 216,751 | 741,162 |
Cash and cash equivalents, end of period | $ 748,305 | $ 241,897 |
Condensed Consolidated Stockhol
Condensed Consolidated Stockholders' Equity Statement (Unaudited) - 9 months ended Oct. 02, 2016 - USD ($) shares in Thousands, $ in Thousands | Total | Mandatory Convertible Preferred Stock [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interest [Member] |
Beginning balance, shares at Dec. 31, 2015 | 0 | 50,335 | ||||||
Beginning balance at Dec. 31, 2015 | $ 825,523 | $ 0 | $ 503 | $ 605,660 | $ 679,716 | $ (402,793) | $ (58,987) | $ 1,424 |
Beginning balance, Treasury shares at Dec. 31, 2015 | (8,354) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 93,740 | 94,026 | (286) | |||||
Foreign currency translation, net of $1.5 million tax | (9,855) | (9,823) | (32) | |||||
Adjustments to pension and postretirement liability, net of $3.7 million tax | 5,934 | 5,934 | ||||||
Other comprehensive loss, net of tax | (3,921) | (3,889) | ||||||
Preferred stock issuance, net, shares | 52 | |||||||
Preferred stock issuance, net | 501,498 | $ 1 | 501,497 | |||||
Exercise of stock options, net of tax withholding forfeitures | (2,061) | (2,388) | $ 327 | |||||
Exercise of stock options, net of tax withholding forfeitures, shares | 42 | |||||||
Conversion of restricted stock units into common stock, net of tax withholding forfeitures | (3,239) | (4,987) | $ 1,748 | |||||
Conversion of restricted stock units into common stock, net of tax withholding forfeitures, shares | 121 | |||||||
Share-based compensation | 14,566 | 14,566 | ||||||
Preferred stock dividends | (6,695) | (6,695) | ||||||
Common stock dividends ($0.15 per share) | (6,359) | (6,359) | ||||||
Ending balance, shares at Oct. 02, 2016 | 52 | 50,335 | ||||||
Ending balance at Oct. 02, 2016 | $ 1,413,052 | $ 1 | $ 503 | $ 1,114,348 | $ 760,688 | $ (400,718) | $ (62,876) | $ 1,106 |
Ending balance, Treasury shares at Oct. 02, 2016 | (8,191) |
Condensed Consolidated Stockho6
Condensed Consolidated Stockholders' Equity Statement (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2016 | Sep. 27, 2015 | Oct. 02, 2016 | Sep. 27, 2015 | |
Statement of Stockholders' Equity [Abstract] | ||||
Foreign currency translation, tax expense (benefit) | $ 0.4 | $ 2.1 | $ 1.5 | $ 0 |
Adjustments to pension and postretirement liability, tax expense | $ 3.1 | $ 0.5 | $ 3.7 | $ 1.6 |
Dividends declared per share (in usd per share) | $ 0.05 | $ 0.05 | $ 0.15 | $ 0.15 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Oct. 02, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying Condensed Consolidated Financial Statements include Belden Inc. and all of its subsidiaries (the Company, us, we, or our). We eliminate all significant affiliate accounts and transactions in consolidation. The accompanying Condensed Consolidated Financial Statements presented as of any date other than December 31, 2015 : • Are prepared from the books and records without audit, and • Are prepared in accordance with the instructions for Form 10-Q and do not include all of the information required by accounting principles generally accepted in the United States for complete statements, but • Include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the financial statements. These Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Supplementary Data contained in our 2015 Annual Report on Form 10-K and Current Report on Form 8-K filed with the Securities and Exchange Commission on May 31, 2016. Business Description We are an innovative signal transmission solutions provider built around five global business platforms – Broadcast Solutions, Enterprise Connectivity Solutions, Industrial Connectivity Solutions, Industrial IT Solutions, and Network Security Solutions. Our comprehensive portfolio of signal transmission solutions provides industry leading secure and reliable transmission of data, sound and video for mission critical applications. Reporting Periods Our fiscal year and fiscal fourth quarter both end on December 31. Our fiscal first quarter ends on the Sunday falling closest to 91 days after December 31, which was April 3, 2016, the 94 th day of our fiscal year 2016. Our fiscal second and third quarters each have 91 days. The nine months ended October 2, 2016 and September 27, 2015 included 276 days and 270 days, respectively. Reclassifications We have made certain reclassifications to the 2015 Condensed Consolidated Financial Statements with no impact to reported net income in order to conform to the 2016 presentation. Fair Value Measurement Accounting guidance for fair value measurements specifies a hierarchy of valuation techniques based upon whether the inputs to those valuation techniques reflect assumptions other market participants would use based upon market data obtained from independent sources or reflect our own assumptions of market participant valuation. The hierarchy is broken down into three levels based on the reliability of the inputs as follows: • Level 1 – Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities; • Level 2 – Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets, or financial instruments for which significant inputs are observable, either directly or indirectly; and • Level 3 – Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. As of and during the three and nine months ended October 2, 2016 and September 27, 2015 , we utilized Level 1 inputs to determine the fair value of cash equivalents and Level 3 inputs to determine the fair value of the estimated earn-out liability related to an acquisition. See Note 2 for further discussion. We did not have any transfers between Level 1 and Level 2 fair value measurements during the nine months ended October 2, 2016 and September 27, 2015 . Cash and Cash Equivalents We classify cash on hand and deposits in banks, including commercial paper, money market accounts, and other investments with an original maturity of three months or less, that we hold from time to time, as cash and cash equivalents. We periodically have cash equivalents consisting of short-term money market funds and other investments. The primary objective of our investment activities is to preserve our capital for the purpose of funding operations. We do not enter into investments for trading or speculative purposes. As of October 2, 2016 , we did not have any significant cash equivalents. Contingent Liabilities We have established liabilities for environmental and legal contingencies that are probable of occurrence and reasonably estimable, the amounts of which are currently not material. We accrue environmental remediation costs based on estimates of known environmental remediation exposures developed in consultation with our environmental consultants and legal counsel. We are, from time to time, subject to routine litigation incidental to our business. These lawsuits primarily involve claims for damages arising out of the use of our products, allegations of patent or trademark infringement, and litigation and administrative proceedings involving employment matters and commercial disputes. Based on facts currently available, we believe the disposition of the claims that are pending or asserted will not have a materially adverse effect on our financial position, results of operations, or cash flow. As of October 2, 2016 , we were party to standby letters of credit, bank guaranties, and surety bonds totaling $8.6 million , $3.0 million , and $2.4 million , respectively. Revenue Recognition We recognize revenue when all of the following circumstances are satisfied: (1) persuasive evidence of an arrangement exists, (2) price is fixed or determinable, (3) collectability is reasonably assured, and (4) delivery has occurred. Delivery occurs in the period in which the customer takes title and assumes the risks and rewards of ownership of the products specified in the customer’s purchase order or sales agreement. At times, we enter into arrangements that involve the delivery of multiple elements. For these arrangements, when the elements can be separated, the revenue is allocated to each deliverable based on that element’s relative selling price and recognized based on the period of delivery for each element. Generally, we determine relative selling price using our best estimate of selling price, unless we have established vendor specific objective evidence (VSOE) or third party evidence of fair value exists for such arrangements. We record revenue net of estimated rebates, price allowances, invoicing adjustments, and product returns. We record revisions to these estimates in the period in which the facts that give rise to each revision become known. We have certain products subject to the accounting guidance on software revenue recognition. For such products, software license revenue is recognized when persuasive evidence of an arrangement exists, delivery of the product has occurred, the fee is fixed or determinable, collection is probable and VSOE of the fair value of undelivered elements exists. As substantially all of the software licenses are sold in multiple-element arrangements that include either support or both support and professional services, we use the residual method to determine the amount of software license revenue to be recognized. Under the residual method, consideration is allocated to undelivered elements based upon VSOE of the fair value of those elements, with the residual of the arrangement fee allocated to and recognized as software license revenue. In our Network Security Solutions segment, we have established VSOE of the fair value of support, subscription-based software licenses and professional services. Software license revenue is generally recognized upon delivery of the software if all revenue recognition criteria are met. Revenue allocated to support services under our Network Security Solutions support contracts, subscription-based software, and remote ongoing operational services is paid in advance and recognized ratably over the term of the service. Revenue allocated to professional services, including remote implementation services, is recognized as the services are performed. Discontinued Operations In the nine months ended September 27, 2015 , we recognized a $0.2 million ( $0.1 million net of tax) loss from disposal of discontinued operations for a final escrow settlement related to the 2010 disposition of Trapeze Networks, Inc. Additionally, in both the three and nine months ended September 27, 2015, we recognized a $0.2 million net loss from discontinued operations for income tax expense related to this disposed business. Subsequent Events We have evaluated subsequent events after the balance sheet date through the financial statement issuance date for appropriate accounting and disclosure. See Note 13. Current-Year Adoption of Accounting Pronouncements In April 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2015-03, Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03), which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The standard is effective for fiscal years beginning after December 15, 2015. We adopted ASU 2015-03 effective January 1, 2016, retrospectively. Adoption resulted in a $6.0 million decrease in total current assets, a $19.2 million decrease in other long-lived assets, and a $25.2 million decrease in long-term debt in our Consolidated Balance Sheet as of December 31, 2015 compared to the prior period presentation. Adoption had no impact on our results of operations. Pending Adoption of Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which will replace most existing revenue recognition guidance in U.S. GAAP. The core principle of the ASU is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. ASU 2014-09 requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. ASU 2014-09 will be effective for us beginning January 1, 2018, and allows for both retrospective and modified retrospective methods of adoption. Early adoption beginning January 1, 2017 is permitted. We are continuing the process of determining the method and timing of adoption and assessing the impact of ASU 2014-09 on our Consolidated Financial Statements. Our initial assessment indicates that the overall impact of adopting ASU 2014-09 is expected to be minimal. Any significant impact is expected to be limited to a software product line within our Broadcast segment that generates an immaterial amount of annual revenues. In August 2014, the FASB issued disclosure guidance that requires us to evaluate, at each annual and interim period, whether substantial doubt exists about our ability to continue as a going concern, and if applicable, to provide related disclosures. The new guidance will be effective for us for our annual period ending December 31, 2016. This guidance is not currently expected to have a material effect on our financial statement disclosures upon adoption, although the ultimate impact will be dependent on our financial condition and expected operating outlook at such time. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (ASU 2016-02), a leasing standard for both lessees and lessors. Under its core principle, a lessee will recognize lease assets and liabilities on the balance sheet for all arrangements with terms longer than 12 months. Lessor accounting remains largely consistent with existing U.S. generally accepted accounting principles. The new standard will be effective for us beginning January 1, 2019. Early adoption is permitted. The standard requires the use of a modified retrospective transition method. We are evaluating the effect that ASU 2016-02 will have on our consolidated financial statements and related disclosures. In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Improvements to Employee Share-Based Payment Accounting (ASU 2016-09), which requires entities to recognize the income tax effects of stock awards in the income statement when the awards vest or are settled. Further, ASU 2016-09 allows entities to withhold up to the maximum individual statutory tax rate without classifying the stock awards as a liability and to account for forfeitures either upon occurrence or by estimating forfeitures. The new standard will be effective for us beginning January 1, 2017. Early adoption is permitted. We are evaluating the effect that ASU 2016-09 will have on our consolidated financial statements and related disclosures. In October 2016, the FASB issued Accounting Standards Update No. 2016-16, Intra-Entity Transfers of Assets Other Than Inventory (ASU 2016-16), which requires recognition of the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Consequently, the standard eliminates the exception to the recognition of current and deferred income taxes for an intra-entity asset transfer other than for inventory until the asset has been sold to an outside party. The new standard will be effective for us beginning January 1, 2017. Early adoption is permitted. We are evaluating the effect that ASU 2016-16 will have on our consolidated financial statements and related disclosures. |
Acquisitions
Acquisitions | 9 Months Ended |
Oct. 02, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions M2FX We acquired 100% of the shares of M2FX Limited (M2FX) on January 7, 2016 for a preliminary purchase price of $18.9 million . Of the total purchase price, $3.3 million has been preliminarily deferred as estimated earn-out consideration. The estimated earn-out is scheduled to be paid in early 2017, if certain financial targets are achieved. We determined the estimated fair value of the earn-out with the assistance of a third party valuation specialist using a probability weighted discounted cash flow model. M2FX is a manufacturer of fiber optic cable and fiber protective solutions for broadband access and telecommunications networks. M2FX is located in the United Kingdom. The results of M2FX have been included in our Consolidated Financial Statements from January 7, 2016, and are reported within the Broadcast segment. The M2FX acquisition was not material to our financial position or results of operations. |
Operating Segments
Operating Segments | 9 Months Ended |
Oct. 02, 2016 | |
Segment Reporting [Abstract] | |
Operating Segments | Operating Segments We are organized around five global business platforms: Broadcast, Enterprise Connectivity, Industrial Connectivity, Industrial IT, and Network Security. Each of the global business platforms represents a reportable segment. To capitalize on the adoption of IP technology and accelerate our penetration of the commercial audio-video market, we transferred responsibility of audio-video cable and connectors from our Broadcast platform to our Enterprise Connectivity platform effective January 1, 2016. We have revised the prior period segment information to conform to the change in the composition of these reportable segments. This transfer had no impact to our reporting units for purposes of goodwill impairment testing. The key measures of segment profit or loss reviewed by our chief operating decision maker are Segment Revenues and Segment EBITDA. Segment Revenues represent non-affiliate revenues and include revenues that would have otherwise been recorded by acquired businesses as independent entities but were not recognized in our Consolidated Statements of Operations due to the effects of purchase accounting and the associated write-down of acquired deferred revenue to fair value. Segment EBITDA excludes certain items, including depreciation expense; amortization of intangibles; asset impairment; severance, restructuring, and acquisition integration costs; purchase accounting effects related to acquisitions, such as the adjustment of acquired inventory and deferred revenue to fair value; and other costs. We allocate corporate expenses to the segments for purposes of measuring Segment EBITDA. Corporate expenses are allocated on the basis of each segment’s relative EBITDA prior to the allocation. Our measure of segment assets does not include cash, goodwill, intangible assets, deferred tax assets, or corporate assets. All goodwill is allocated to reporting units of our segments for purposes of impairment testing. Broadcast Solutions Enterprise Connectivity Solutions Industrial Connectivity Solutions Industrial IT Solutions Network Security Solutions Total Segments (In thousands) As of and for the three months ended October 2, 2016 Segment revenues $ 196,173 $ 156,658 $ 149,847 $ 60,168 $ 39,622 $ 602,468 Affiliate revenues 46 1,587 511 13 — 2,157 Segment EBITDA 36,545 27,294 23,649 12,771 11,677 111,936 Depreciation expense 4,063 3,210 2,738 565 1,027 11,603 Amortization expense 10,955 431 604 1,501 10,317 23,808 Severance, restructuring, and acquisition integration costs 174 5,573 4,746 2,302 — 12,795 Deferred gross profit adjustments 283 — — — 1,076 1,359 Segment assets 314,020 265,085 261,923 62,828 43,110 946,966 As of and for the three months ended September 27, 2015 Segment revenues $ 186,722 $ 155,148 $ 147,702 $ 59,184 $ 41,359 $ 590,115 Affiliate revenues 42 1,630 355 37 — 2,064 Segment EBITDA 27,369 25,705 23,225 10,466 11,240 98,005 Depreciation expense 4,027 3,156 2,810 570 1,255 11,818 Amortization expense 12,354 429 799 1,480 10,607 25,669 Severance, restructuring, and acquisition integration costs 13,722 192 118 54 57 14,143 Deferred gross profit adjustments 419 — — — 10,909 11,328 Segment assets 346,271 266,248 250,622 61,441 41,520 966,102 As of and for the nine months ended October 2, 2016 Segment revenues $ 560,966 $ 452,951 $ 438,746 $ 176,560 $ 120,426 $ 1,749,649 Affiliate revenues 644 4,615 906 44 — 6,209 Segment EBITDA 89,317 80,605 73,700 34,056 32,659 310,337 Depreciation expense 12,086 10,028 8,165 1,749 3,225 35,253 Amortization expense 37,306 1,292 1,796 4,517 30,692 75,603 Severance, restructuring, and acquisition integration costs 5,871 7,280 7,982 5,910 29 27,072 Purchase accounting effects of acquisitions 195 — — — — 195 Deferred gross profit adjustments 1,391 — — — 4,021 5,412 Segment assets 314,020 265,085 261,923 62,828 43,110 946,966 As of and for the nine months ended September 27, 2015 Segment revenues $ 538,145 $ 458,756 $ 461,549 $ 181,527 $ 118,102 $ 1,758,079 Affiliate revenues 24 5,328 1,086 68 8 6,514 Segment EBITDA 73,374 75,506 76,078 31,731 29,913 286,602 Depreciation expense 12,140 9,550 8,530 1,713 3,118 35,051 Amortization expense 37,375 1,290 2,429 4,369 32,627 78,090 Severance, restructuring, and acquisition integration costs 28,532 843 3,054 2 1,102 33,533 Purchase accounting effects of acquisitions — — 267 — 9,155 9,422 Deferred gross profit adjustments 2,789 — — — 43,637 46,426 Segment assets 346,271 266,248 250,622 61,441 41,520 966,102 The following table is a reconciliation of the total of the reportable segments’ Revenues and EBITDA to consolidated revenues and consolidated income from continuing operations before taxes, respectively. Three Months Ended Nine Months Ended October 2, 2016 September 27, 2015 October 2, 2016 September 27, 2015 (In thousands) (In thousands) Total Segment Revenues $ 602,468 $ 590,115 $ 1,749,649 $ 1,758,079 Deferred revenue adjustments (1) (1,359 ) (10,849 ) (5,412 ) (46,101 ) Consolidated Revenues $ 601,109 $ 579,266 $ 1,744,237 $ 1,711,978 Total Segment EBITDA $ 111,936 $ 98,005 $ 310,337 $ 286,602 Amortization of intangibles (23,808 ) (25,669 ) (75,603 ) (78,090 ) Deferred gross profit adjustments (1) (1,359 ) (11,328 ) (5,412 ) (46,426 ) Severance, restructuring, and acquisition integration costs (2) (12,795 ) (14,143 ) (27,072 ) (33,533 ) Depreciation expense (11,603 ) (11,818 ) (35,253 ) (35,051 ) Purchase accounting effects related to acquisitions (3) — — (195 ) (9,422 ) Income from equity method investment 586 348 1,077 1,459 Eliminations (977 ) (893 ) (2,694 ) (1,996 ) Consolidated operating income 61,980 34,502 165,185 83,543 Interest expense, net (23,513 ) (25,416 ) (71,958 ) (74,031 ) Consolidated income from continuing operations before taxes $ 38,467 $ 9,086 $ 93,227 $ 9,512 (1) For both the three and nine months ended October 2, 2016 and September 27, 2015 , both our consolidated revenues and gross profit were negatively impacted by the reduction of the acquired deferred revenue balance to fair value associated with our 2015 acquisition of Tripwire. (2) See Note 7, Severance, Restructuring, and Acquisition Integration Activities, for details . (3) For the nine months ended October 2, 2016 , we recognized $0.2 million of cost of sales related to the adjustment of acquired inventory to fair value related to our acquisition of M2FX. For the nine months ended September 27, 2015 , we recognized $9.2 million of compensation expense related to the accelerated vesting of acquiree stock based compensation awards associated with our acquisition of Tripwire. In addition, we recognized $0.3 million of cost of sales related to the adjustment of acquired inventory to fair value related to our acquisition of Coast. |
Income per Share
Income per Share | 9 Months Ended |
Oct. 02, 2016 | |
Earnings Per Share [Abstract] | |
Income per Share | Income per Share The following table presents the basis for the income per share computations: Three Months Ended Nine Months Ended October 2, 2016 September 27, 2015 October 2, 2016 September 27, 2015 (In thousands) Numerator: Income from continuing operations $ 35,565 $ 14,811 $ 93,740 $ 16,852 Less: Net loss attributable to noncontrolling interest (88 ) — (286 ) — Less: Preferred stock dividends 6,695 — 6,695 — Income from continuing operations attributable to Belden common stockholders 28,958 14,811 87,331 16,852 Loss from discontinued operations, net of tax, attributable to Belden common stockholders — (242 ) — (242 ) Loss from disposal of discontinued operations, net of tax, attributable to Belden common stockholders — — — (86 ) Net income attributable to Belden common stockholders $ 28,958 $ 14,569 $ 87,331 $ 16,524 Denominator: Weighted average shares outstanding, basic 42,126 42,417 42,073 42,536 Effect of dilutive common stock equivalents 475 491 459 581 Weighted average shares outstanding, diluted 42,601 42,908 42,532 43,117 For the three and nine months ended October 2, 2016 , diluted weighted average shares outstanding do not include outstanding equity awards of 0.2 million and 0.5 million , respectively, and also do not include preferred shares that are convertible into 5.2 million and 1.7 million common shares, respectively, because to do so would have been anti-dilutive. For the three and nine months ended September 27, 2015 , diluted weighted average shares outstanding do not include outstanding equity awards of 0.5 million and 0.3 million , respectively, because to do so would have been anti-dilutive. For purposes of calculating basic earnings per share, unvested restricted stock units are not included in the calculation of basic weighted average shares outstanding until all necessary conditions have been satisfied and issuance of the shares underlying the restricted stock units is no longer contingent. Necessary conditions are not satisfied until the vesting date, at which time holders of our restricted stock units receive shares of our common stock. For purposes of calculating diluted earnings per share, unvested restricted stock units are included to the extent that they are dilutive. In determining whether unvested restricted stock units are dilutive, each issuance of restricted stock units is considered separately. Once a restricted stock unit has vested, it is included in the calculation of both basic and diluted weighted average shares outstanding. |
Inventories
Inventories | 9 Months Ended |
Oct. 02, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The major classes of inventories were as follows: October 2, 2016 December 31, 2015 (In thousands) Raw materials $ 94,789 $ 92,929 Work-in-process 24,627 27,730 Finished goods 99,477 97,814 Gross inventories 218,893 218,473 Excess and obsolete reserves (25,393 ) (22,531 ) Net inventories $ 193,500 $ 195,942 |
Long-Lived Assets
Long-Lived Assets | 9 Months Ended |
Oct. 02, 2016 | |
Property, Plant and Equipment [Abstract] | |
Long-Lived Assets | Long-Lived Assets Depreciation and Amortization Expense We recognized depreciation expense of $11.6 million and $35.3 million in the three and nine months ended October 2, 2016 , respectively. We recognized depreciation expense of $11.8 million and $35.1 million in the three and nine months ended September 27, 2015 , respectively. We recognized amortization expense related to our intangible assets of $23.8 million and $75.6 million in the three and nine months ended October 2, 2016 , respectively. We recognized amortization expense related to our intangible assets of $25.7 million and $78.1 million in the three and nine months ended September 27, 2015 , respectively. |
Severance, Restructuring, and A
Severance, Restructuring, and Acquisition Integration Activities | 9 Months Ended |
Oct. 02, 2016 | |
Restructuring and Related Activities [Abstract] | |
Severance, Restructuring, and Acquisition Integration Activities | Severance, Restructuring, and Acquisition Integration Activities Industrial Restructuring Program Both our Industrial Connectivity and Industrial IT segments have been negatively impacted by a decline in sales volume. Global demand for industrial products has been negatively impacted by the strengthened U.S. dollar and lower energy prices. Our customers have reduced capital spending in response to these conditions, and we expect these conditions to continue to negatively impact our industrial segments’ sales volume. In response to these industrial market conditions, we began to execute a restructuring program in the fourth quarter of 2015 to reduce our cost structure. We recognized $2.6 million and $8.4 million of severance and other restructuring costs for this program during the three and nine months ended October 2, 2016 , respectively. We do not expect to incur any more restructuring costs for this program. We expect the restructuring program to generate approximately $18 million of savings on an annualized basis, which we began to realize in the first quarter of 2016. Industrial Manufacturing Footprint Program In further response to the industrial market conditions described above, in the first quarter of 2016 we began a program to further consolidate our manufacturing footprint. The manufacturing consolidation is expected to be completed by the end of 2017. We recognized $10.0 million and $12.5 million of severance and other restructuring costs for this program during the three and nine months ended October 2, 2016 , respectively. The costs were incurred by the Enterprise and Industrial Connectivity segments, as the manufacturing locations involved in the program serve both platforms. We expect to incur approximately $5 million and $15 million of additional severance and other restructuring costs for this program in 2016 and 2017, respectively. We expect the program to generate approximately $10 million of savings on an annualized basis, beginning in the second half of 2017. Grass Valley Restructuring Program Our Broadcast segment’s Grass Valley brand was negatively impacted by a decline in global demand of broadcast technology infrastructure products. Outside of the U.S., demand for these products was impacted by the relative price increase of products due to the strengthened U.S. dollar as well as the impact of weaker economic conditions which have resulted in lower capital spending. Within the U.S., demand for these products was impacted by deferred capital spending. We believe broadcast customers have deferred their capital spending as they navigate through a number of important industry transitions and a changing media landscape. In response to these broadcast market conditions, we began to execute a restructuring program beginning in the third quarter of 2015 to further reduce our cost structure. We recognized $0.1 million and $5.1 million of severance and other restructuring costs for this program during the three and nine months ended October 2, 2016 , respectively. We expect to incur approximately $1 million of additional severance and other restructuring costs for this program in the fourth quarter of 2016. We expect the restructuring program to generate approximately $30 million of savings on an annualized basis, which we began to realize in the fourth quarter of 2015. Productivity Improvement Program and Acquisition Integration In 2014, we began a productivity improvement program and the integration of our acquisition of Grass Valley. The productivity improvement program focused on improving the productivity of our sales, marketing, finance, and human resources functions relative to our peers. The majority of the costs for the productivity improvement program related to the Industrial Connectivity, Enterprise, and Industrial IT segments. The restructuring and integration activities related to our acquisition of Grass Valley focused on achieving desired cost savings by consolidating existing and acquired operating facilities and other support functions. We substantially completed the productivity improvement program and the acquisition integration activities in 2015. In the three and nine months ended September 27, 2015 , we recorded severance, restructuring, and integration costs of $0.1 million and $19.5 million , respectively, related to these two significant programs, as well as other cost reduction actions and the integration of our acquisitions of ProSoft, Coast, and Tripwire. In the three and nine months ended October 2, 2016 , we recognized $0.1 million and $1.1 million of costs, respectively, primarily related to our 2016 acquisition of M2FX. The following table summarizes the costs by segment of the various programs described above: Three Months Ended October 2, 2016 Severance Other Restructuring and Integration Costs Total Costs (In thousands) Broadcast Solutions $ (114 ) $ 288 $ 174 Enterprise Connectivity Solutions (21 ) 5,594 5,573 Industrial Connectivity Solutions 184 4,562 4,746 Industrial IT Solutions 1,103 1,199 2,302 Network Security Solutions — — — Total $ 1,152 $ 11,643 $ 12,795 Three Months Ended September 27, 2015 Broadcast Solutions $ 11,978 $ 1,744 $ 13,722 Enterprise Connectivity Solutions 99 93 192 Industrial Connectivity Solutions — 118 118 Industrial IT Solutions — 54 54 Network Security Solutions — 57 57 Total $ 12,077 $ 2,066 $ 14,143 Nine Months Ended October 2, 2016 Broadcast Solutions $ (865 ) $ 6,736 $ 5,871 Enterprise Connectivity Solutions 55 7,225 7,280 Industrial Connectivity Solutions 1,961 6,021 7,982 Industrial IT Solutions 3,734 2,176 5,910 Network Security Solutions — 29 29 Total $ 4,885 $ 22,187 $ 27,072 Nine Months Ended September 27, 2015 Broadcast Solutions $ 12,691 $ 15,852 $ 28,543 Enterprise Connectivity Solutions 171 661 832 Industrial Connectivity Solutions 967 2,087 3,054 Industrial IT Solutions (740 ) 742 2 Network Security Solutions — 1,102 1,102 Total $ 13,089 $ 20,444 $ 33,533 Of the total severance, restructuring, and acquisition integration costs recognized in the three months ended October 2, 2016 , $2.9 million , $9.9 million , and $0.0 million were included in cost of sales; selling, general and administrative expenses; and research and development, respectively. Of the total severance, restructuring, and acquisition integration costs recognized in the three months ended September 27, 2015 , $3.2 million , $9.3 million , and $1.6 million were included in cost of sales; selling, general and administrative expenses; and research and development, respectively. Of the total severance, restructuring, and acquisition integration costs recognized in the nine months ended October 2, 2016 , $6.8 million , $19.6 million , and $0.7 million were included in cost of sales; selling, general and administrative expenses; and research and development, respectively. Of the total severance, restructuring, and acquisition integration costs recognized in the nine months ended September 27, 2015 , $6.3 million , $23.8 million , and $3.4 million were included in cost of sales; selling, general and administrative expenses; and research and development, respectively. The other restructuring and integration costs primarily consisted of non-cash pension settlement charges due in part to our restructuring activities as well as equipment transfer, costs to consolidate operating and support facilities, retention bonuses, relocation, travel, legal, and other costs. The majority of the other cash restructuring and integration costs related to these actions were paid as incurred or are payable within the next 60 days . Accrued Severance The table below sets forth the activity that occurred for the programs described above with significant severance costs. The balances are included in accrued liabilities. Grass Valley Restructuring Industrial Restructuring (In thousands) Balance at December 31, 2015 $ 12,076 $ 2,947 New charges 886 2,919 Cash payments (4,404 ) (1,967 ) Foreign currency translation 167 94 Other adjustments (1,528 ) — Balance at April 3, 2016 $ 7,197 $ 3,993 New charges 251 1,489 Cash payments (3,356 ) (1,685 ) Foreign currency translation (13 ) (42 ) Other adjustments (360 ) — Balance at July 3, 2016 $ 3,719 $ 3,755 New charges 148 1,287 Cash payments (1,945 ) (743 ) Foreign currency translation 32 51 Other adjustments (262 ) — Balance at October 2, 2016 $ 1,692 $ 4,350 The other adjustments were the result of changes in estimates. We experienced higher than expected voluntary turnover, and as a result, certain approved severance actions were not taken. We expect the majority of the liabilities for these programs to be paid in the fourth quarter of 2016. |
Long-Term Debt and Other Borrow
Long-Term Debt and Other Borrowing Arrangements | 9 Months Ended |
Oct. 02, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Other Borrowing Arrangements | Long-Term Debt and Other Borrowing Arrangements The carrying values of our long-term debt and other borrowing arrangements were as follows: October 2, 2016 December 31, 2015 (In thousands) Revolving credit agreement due 2018 $ — $ 50,000 Variable rate term loan due 2020 242,152 243,965 Senior subordinated notes: 5.25% Senior subordinated notes due 2024 200,000 200,000 5.50% Senior subordinated notes due 2023 568,449 553,835 5.50% Senior subordinated notes due 2022 700,000 700,000 9.25% Senior subordinated notes due 2019 5,221 5,221 Total senior subordinated notes 1,473,670 1,459,056 Total gross debt and other borrowing arrangements 1,715,822 1,753,021 Less unamortized debt issuance costs (22,390 ) (25,239 ) Total net debt and other borrowing arrangements 1,693,432 1,727,782 Less current maturities of Term Loan (2,500 ) (2,500 ) Long-term debt $ 1,690,932 $ 1,725,282 Revolving Credit Agreement due 2018 Our revolving credit agreement provides a $400.0 million multi-currency asset-based revolving credit facility (the Revolver). The borrowing base under the Revolver includes eligible accounts receivable; inventory; and property, plant and equipment of certain of our subsidiaries in the U.S., Canada, Germany, the Netherlands, and the UK. In January 2015, we borrowed $200.0 million under the Revolver in order to fund a portion of the purchase price for the acquisition of Tripwire. During the fourth quarter of 2015 and first quarter of 2016, we repaid $150.0 million and $50.0 million , respectively, of the Revolver borrowings. As of October 2, 2016 , we had no borrowings outstanding on our revolver, and our available borrowing capacity was $275.1 million . The Revolver matures in 2018 . Interest on outstanding borrowings is variable, based upon LIBOR or other similar indices in foreign jurisdictions , plus a spread that ranges from 1.25% - 1.75% , depending upon our leverage position. We pay a commitment fee on our available borrowing capacity of 0.375% . In the event we borrow more than 90% of our borrowing base, we are subject to a fixed charge coverage ratio covenant. Variable Rate Term Loan due 2020 In 2013, we borrowed $250.0 million under a Term Loan Credit Agreement (the Term Loan). The Term Loan is secured on a second lien basis by the assets securing the Revolving Credit Agreement due 2018 discussed above and on a first lien basis by the stock of certain of our subsidiaries. The borrowings under the Term Loan are scheduled to mature in 2020 and require quarterly amortization payments of approximately $0.6 million . Interest under the Term Loan is variable, based upon the three-month LIBOR plus an applicable spread. The interest rate as of October 2, 2016 was 5.00% . We paid off the Term Loan in the fourth quarter of 2016. See Note 13 for further discussion. Senior Subordinated Notes We have outstanding $200.0 million aggregate principal amount of 5.25% senior subordinated notes due 2024 (the 2024 Notes). The 2024 Notes are guaranteed on a senior subordinated basis by certain of our subsidiaries. The 2024 Notes rank equal in right of payment with our senior subordinated notes due 2023, 2022, and 2019 and with any future subordinated debt, and they are subordinated to all of our senior debt and the senior debt of our subsidiary guarantors, including our Term Loan and Revolver. Interest is payable semiannually on January 15 and July 15 of each year. We have outstanding €500.0 million aggregate principal amount of 5.5% senior subordinated notes due 2023 (the 2023 Notes). The carrying value of the 2023 Notes as of October 2, 2016 is $568.4 million . The 2023 Notes are guaranteed on a senior subordinated basis by certain of our subsidiaries. The notes rank equal in right of payment with our senior subordinated notes due 2024, 2022, and 2019 and with any future subordinated debt, and they are subordinated to all of our senior debt and the senior debt of our subsidiary guarantors, including our Term Loan and Revolver. Interest is payable semiannually on April 15 and October 15 of each year. We have outstanding $700.0 million aggregate principal amount of 5.5% senior subordinated notes due 2022 (the 2022 Notes). The 2022 Notes are guaranteed on a senior subordinated basis by certain of our subsidiaries. The 2022 Notes rank equal in right of payment with our senior subordinated notes due 2024, 2023, and 2019, and with any future subordinated debt, and they are subordinated to all of our senior debt and the senior debt of our subsidiary guarantors, including our Term Loan and Revolver. Interest is payable semiannually on March 1 and September 1 of each year. We have outstanding $5.2 million aggregate principal amount of our senior subordinated notes due 2019 (the 2019 Notes). The 2019 Notes have a coupon interest rate of 9.25% and an effective interest rate of 9.75% . The interest on the 2019 Notes is payable semiannually on June 15 and December 15. The 2019 notes are guaranteed on a senior subordinated basis by certain of our subsidiaries. The notes rank equal in right of payment with our senior subordinated notes due 2024, 2023, and 2022, and with any future senior subordinated debt, and are subordinated to all of our senior debt and the senior debt of our subsidiary guarantors, including our Term Loan and Revolver. Fair Value of Long-Term Debt The fair value of our senior subordinated notes as of October 2, 2016 was approximately $1,524.7 million based on quoted prices of the debt instruments in inactive markets (Level 2 valuation). This amount represents the fair values of our senior subordinated notes with a carrying value of $1,473.7 million as of October 2, 2016 . We believe the fair value of our Term Loan approximates book value. |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 02, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We recognized income tax expense of $2.9 million for the three months ended October 2, 2016 , representing an effective tax rate of 7.5% . We recognized an income tax benefit of $0.5 million for the nine months ended October 2, 2016 , representing an effective tax rate of (0.6%) . The effective tax rates were impacted by the following significant factors: • We recognized $2.9 million and $11.0 million of tax benefit in the three and nine months ended October 2, 2016 , respectively, as the result of securing a significant tax deduction for a foreign currency loss by implementing several transactions related to our international tax structure. • We also recognized a $7.0 million tax benefit in the nine months ended October 2, 2016 for the reduction of deferred tax liabilities related to a previously completed acquisition. As part of an implemented tax planning strategy, we secured a Private Letter Ruling from the Internal Revenue Service that effectively increased the tax basis in the acquired assets to the full fair value. Accordingly, a book-tax difference was eliminated, and we reversed deferred tax liabilities previously recorded, resulting in the tax benefit. • In the three and nine months ended October 2, 2016 , we recognized tax benefits of $2.2 million and $6.0 million , respectively, as a result of reducing a deferred tax valuation allowance related to net operating loss carryforwards in a foreign jurisdiction. Based on certain restructuring transactions in the nine months ended October 2, 2016 , the net operating loss carryforwards are expected to be realizable. The tax benefits described above for the nine months ended October 2, 2016 were partially offset by a $2.7 million tax expense to record a liability for uncertain tax positions in one of our foreign jurisdictions. We recognized income tax benefits of $5.7 million and $7.3 million for the three and nine months ended September 27, 2015 , respectively, representing effective tax rates of (63.0%) and (77.2%) , respectively. A significant factor impacting the income tax benefit for the nine months ended September 27, 2015 was the recognition of a $1.5 million tax benefit as a result of reducing a deferred tax asset valuation allowance related to a capital loss carryforward. Based on transactions in the nine months ended September 27, 2015 , the capital loss carryforward became fully realizable. In addition, our effective tax rate in 2015 benefited from a tax planning strategy that allowed us to recognize a significant balance of foreign tax credits related to one of our foreign jurisdictions. |
Pension and Other Postretiremen
Pension and Other Postretirement Obligations | 9 Months Ended |
Oct. 02, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Obligations | Pension and Other Postretirement Obligations The following table provides the components of net periodic benefit costs for our pension and other postretirement benefit plans: Pension Obligations Other Postretirement Obligations Three Months Ended October 2, 2016 September 27, 2015 October 2, 2016 September 27, 2015 (In thousands) Service cost $ 1,282 $ 1,344 $ 11 $ 11 Interest cost 2,202 2,164 305 274 Expected return on plan assets (2,931 ) (3,202 ) — — Amortization of prior service credit (11 ) (15 ) (11 ) (16 ) Actuarial losses 659 1,349 29 107 Settlement loss 7,385 — — — Net periodic benefit cost $ 8,586 $ 1,640 $ 334 $ 376 Nine Months Ended Service cost $ 4,118 $ 4,562 $ 40 $ 43 Interest cost 7,020 6,909 1,152 1,076 Expected return on plan assets (9,339 ) (9,515 ) — — Amortization of prior service credit (29 ) (41 ) (33 ) (66 ) Actuarial losses 2,067 3,923 260 359 Settlement loss 7,385 — — — Net periodic benefit cost $ 11,222 $ 5,838 $ 1,419 $ 1,412 |
Comprehensive Income and Accumu
Comprehensive Income and Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Oct. 02, 2016 | |
Equity [Abstract] | |
Comprehensive Income and Accumulated Other Comprehensive Income (Loss) | Comprehensive Income and Accumulated Other Comprehensive Income (Loss) The following table summarizes total comprehensive income (loss): Three Months Ended Nine Months Ended October 2, 2016 September 27, 2015 October 2, 2016 September 27, 2015 (In thousands) Net income $ 35,565 $ 14,569 $ 93,740 $ 16,524 Foreign currency translation loss, net of $0.4 million, $2.1 million, $1.5 million, and $0.0 million tax, respectively (8,762 ) (25,249 ) (9,855 ) (15,056 ) Adjustments to pension and postretirement liability, net of $3.1 million, $0.5 million, $3.7 million, and $1.6 million tax, respectively 4,952 877 5,934 2,568 Total comprehensive income (loss) $ 31,755 $ (9,803 ) $ 89,819 $ 4,036 Less: Comprehensive loss attributable to noncontrolling interest (91 ) — (318 ) — Comprehensive income (loss) attributable to Belden $ 31,846 $ (9,803 ) $ 90,137 $ 4,036 The accumulated balances related to each component of other comprehensive income (loss), net of tax, are as follows: Foreign Currency Translation Component Pension and Other Postretirement Benefit Plans Accumulated Other Comprehensive Income (Loss) (In thousands) Balance at December 31, 2015 $ (23,411 ) $ (35,576 ) $ (58,987 ) Other comprehensive loss attributable to Belden before reclassifications (9,823 ) — (9,823 ) Amounts reclassified from accumulated other comprehensive income (loss) — 5,934 5,934 Net current period other comprehensive loss attributable to Belden (9,823 ) 5,934 (3,889 ) Balance at October 2, 2016 $ (33,234 ) $ (29,642 ) $ (62,876 ) The following table summarizes the effects of reclassifications from accumulated other comprehensive income (loss) for the nine months ended October 2, 2016 : Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Consolidated Statements of Operations and Comprehensive Income (In thousands) Amortization of pension and other postretirement benefit plan items: Settlement loss $ 7,385 (1) Actuarial losses 2,327 (1) Prior service credit (62 ) (1) Total before tax 9,650 Tax benefit (3,716 ) Net of tax $ 5,934 (1) The amortization of these accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit costs (see Note 10). |
Preferred Stock
Preferred Stock | 9 Months Ended |
Oct. 02, 2016 | |
Equity [Abstract] | |
Preferred Stock | Preferred Stock On July 26, 2016, we issued 5.2 million depositary shares, each of which represents 1/100th interest in a share of 6.75% Series B Mandatory Convertible Preferred Stock (the Preferred Stock), for an offering price of $100 per depositary share. Holders of the Preferred Stock may elect to convert their shares into common stock at any time prior to the mandatory conversion date. Unless earlier converted, each share of Preferred Stock will automatically convert into common stock on or around July 15, 2019 into between 120.46 and 132.50 shares of Belden common stock, subject to customary anti-dilution adjustments. This represents a range of 6.2 million to 6.9 million shares of Belden common stock to be issued upon conversion. The number of shares of Belden common stock issuable upon the mandatory conversion of the Preferred Stock will be determined based upon the volume-weighted average price of Belden’s common stock over the 20 day trading period beginning on, and including, the 22nd scheduled trading day prior to July 15, 2019. The net proceeds from this offering were approximately $501 million . We intend to use the proceeds for general corporate purposes. During the three and nine months ended October 2, 2016, the Preferred Stock accrued $6.7 million of dividends. With respect to dividend and liquidation rights, the Preferred Stock ranks senior to our common stock and junior to all of our existing and future indebtedness. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Oct. 02, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On October 10, 2016, we completed an offering for €200.0 million ( $222.2 million ) aggregate principal amount of 4.125% senior subordinated notes due 2026 (the 2026 Notes). The 2026 Notes are guaranteed on a senior subordinated basis by our current and future domestic subsidiaries. The notes rank equal in right of payment with our senior subordinated notes due 2024, 2023, 2022, and 2019 and with any future subordinated debt, and they are subordinated to all of our senior debt and the senior debt of our subsidiary guarantors, including our Revolver. Interest is payable semiannually on April 15 and October 15 of each year, beginning on April 15, 2017. The proceeds from the debt issuance were used to pay off the variable rate term loan due 2020, for which we will recognize a $2.2 million loss on debt extinguishment during the fourth quarter of 2016. On July 5, 2011, our wholly-owned subsidiary, PPC Broadband, Inc. (PPC), filed an action for patent infringement against Corning Optical Communications RF LLC (Corning). The Complaint alleged that Corning infringed two of PPC’s patents. On July 23, 2015, a jury found that Corning willfully infringed both patents and awarded damages in the amount of $23.9 million . On November 3, 2016, following a series of post-trial motions, the trial judge issued a ruling granting us enhanced damages of $47.7 million plus a yet-to-be-determined amount of pre-judgment interest. We have not recorded any amounts in our consolidated financial statements related to this matter, as Corning may appeal the ruling. |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 02, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying Condensed Consolidated Financial Statements include Belden Inc. and all of its subsidiaries (the Company, us, we, or our). We eliminate all significant affiliate accounts and transactions in consolidation. The accompanying Condensed Consolidated Financial Statements presented as of any date other than December 31, 2015 : • Are prepared from the books and records without audit, and • Are prepared in accordance with the instructions for Form 10-Q and do not include all of the information required by accounting principles generally accepted in the United States for complete statements, but • Include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the financial statements. These Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Supplementary Data contained in our 2015 Annual Report on Form 10-K and Current Report on Form 8-K filed with the Securities and Exchange Commission on May 31, 2016. |
Business Description | Business Description We are an innovative signal transmission solutions provider built around five global business platforms – Broadcast Solutions, Enterprise Connectivity Solutions, Industrial Connectivity Solutions, Industrial IT Solutions, and Network Security Solutions. Our comprehensive portfolio of signal transmission solutions provides industry leading secure and reliable transmission of data, sound and video for mission critical applications. |
Reporting Periods | Reporting Periods Our fiscal year and fiscal fourth quarter both end on December 31. Our fiscal first quarter ends on the Sunday falling closest to 91 days after December 31, which was April 3, 2016, the 94 th day of our fiscal year 2016. Our fiscal second and third quarters each have 91 days. The nine months ended October 2, 2016 and September 27, 2015 included 276 days and 270 days, respectively. |
Reclassifications | Reclassifications We have made certain reclassifications to the 2015 Condensed Consolidated Financial Statements with no impact to reported net income in order to conform to the 2016 presentation. |
Fair Value Measurement | Fair Value Measurement Accounting guidance for fair value measurements specifies a hierarchy of valuation techniques based upon whether the inputs to those valuation techniques reflect assumptions other market participants would use based upon market data obtained from independent sources or reflect our own assumptions of market participant valuation. The hierarchy is broken down into three levels based on the reliability of the inputs as follows: • Level 1 – Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities; • Level 2 – Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets, or financial instruments for which significant inputs are observable, either directly or indirectly; and • Level 3 – Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. As of and during the three and nine months ended October 2, 2016 and September 27, 2015 , we utilized Level 1 inputs to determine the fair value of cash equivalents and Level 3 inputs to determine the fair value of the estimated earn-out liability related to an acquisition. See Note 2 for further discussion. |
Cash and Cash Equivalents | Cash and Cash Equivalents We classify cash on hand and deposits in banks, including commercial paper, money market accounts, and other investments with an original maturity of three months or less, that we hold from time to time, as cash and cash equivalents. We periodically have cash equivalents consisting of short-term money market funds and other investments. The primary objective of our investment activities is to preserve our capital for the purpose of funding operations. We do not enter into investments for trading or speculative purposes. As of October 2, 2016 , we did not have any significant cash equivalents. |
Contingent Liabilities | Contingent Liabilities We have established liabilities for environmental and legal contingencies that are probable of occurrence and reasonably estimable, the amounts of which are currently not material. We accrue environmental remediation costs based on estimates of known environmental remediation exposures developed in consultation with our environmental consultants and legal counsel. We are, from time to time, subject to routine litigation incidental to our business. These lawsuits primarily involve claims for damages arising out of the use of our products, allegations of patent or trademark infringement, and litigation and administrative proceedings involving employment matters and commercial disputes. Based on facts currently available, we believe the disposition of the claims that are pending or asserted will not have a materially adverse effect on our financial position, results of operations, or cash flow. |
Revenue Recognition | Revenue Recognition We recognize revenue when all of the following circumstances are satisfied: (1) persuasive evidence of an arrangement exists, (2) price is fixed or determinable, (3) collectability is reasonably assured, and (4) delivery has occurred. Delivery occurs in the period in which the customer takes title and assumes the risks and rewards of ownership of the products specified in the customer’s purchase order or sales agreement. At times, we enter into arrangements that involve the delivery of multiple elements. For these arrangements, when the elements can be separated, the revenue is allocated to each deliverable based on that element’s relative selling price and recognized based on the period of delivery for each element. Generally, we determine relative selling price using our best estimate of selling price, unless we have established vendor specific objective evidence (VSOE) or third party evidence of fair value exists for such arrangements. We record revenue net of estimated rebates, price allowances, invoicing adjustments, and product returns. We record revisions to these estimates in the period in which the facts that give rise to each revision become known. We have certain products subject to the accounting guidance on software revenue recognition. For such products, software license revenue is recognized when persuasive evidence of an arrangement exists, delivery of the product has occurred, the fee is fixed or determinable, collection is probable and VSOE of the fair value of undelivered elements exists. As substantially all of the software licenses are sold in multiple-element arrangements that include either support or both support and professional services, we use the residual method to determine the amount of software license revenue to be recognized. Under the residual method, consideration is allocated to undelivered elements based upon VSOE of the fair value of those elements, with the residual of the arrangement fee allocated to and recognized as software license revenue. In our Network Security Solutions segment, we have established VSOE of the fair value of support, subscription-based software licenses and professional services. Software license revenue is generally recognized upon delivery of the software if all revenue recognition criteria are met. Revenue allocated to support services under our Network Security Solutions support contracts, subscription-based software, and remote ongoing operational services is paid in advance and recognized ratably over the term of the service. Revenue allocated to professional services, including remote implementation services, is recognized as the services are performed. |
Subsequent Events | Subsequent Events We have evaluated subsequent events after the balance sheet date through the financial statement issuance date for appropriate accounting and disclosure. |
Current Year Adoption of Accounting Pronouncements | Current-Year Adoption of Accounting Pronouncements In April 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2015-03, Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03), which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The standard is effective for fiscal years beginning after December 15, 2015. We adopted ASU 2015-03 effective January 1, 2016, retrospectively. |
Pending Adoption of Recent Accounting Pronouncements | Pending Adoption of Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which will replace most existing revenue recognition guidance in U.S. GAAP. The core principle of the ASU is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. ASU 2014-09 requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. ASU 2014-09 will be effective for us beginning January 1, 2018, and allows for both retrospective and modified retrospective methods of adoption. Early adoption beginning January 1, 2017 is permitted. We are continuing the process of determining the method and timing of adoption and assessing the impact of ASU 2014-09 on our Consolidated Financial Statements. Our initial assessment indicates that the overall impact of adopting ASU 2014-09 is expected to be minimal. Any significant impact is expected to be limited to a software product line within our Broadcast segment that generates an immaterial amount of annual revenues. In August 2014, the FASB issued disclosure guidance that requires us to evaluate, at each annual and interim period, whether substantial doubt exists about our ability to continue as a going concern, and if applicable, to provide related disclosures. The new guidance will be effective for us for our annual period ending December 31, 2016. This guidance is not currently expected to have a material effect on our financial statement disclosures upon adoption, although the ultimate impact will be dependent on our financial condition and expected operating outlook at such time. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (ASU 2016-02), a leasing standard for both lessees and lessors. Under its core principle, a lessee will recognize lease assets and liabilities on the balance sheet for all arrangements with terms longer than 12 months. Lessor accounting remains largely consistent with existing U.S. generally accepted accounting principles. The new standard will be effective for us beginning January 1, 2019. Early adoption is permitted. The standard requires the use of a modified retrospective transition method. We are evaluating the effect that ASU 2016-02 will have on our consolidated financial statements and related disclosures. In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Improvements to Employee Share-Based Payment Accounting (ASU 2016-09), which requires entities to recognize the income tax effects of stock awards in the income statement when the awards vest or are settled. Further, ASU 2016-09 allows entities to withhold up to the maximum individual statutory tax rate without classifying the stock awards as a liability and to account for forfeitures either upon occurrence or by estimating forfeitures. The new standard will be effective for us beginning January 1, 2017. Early adoption is permitted. We are evaluating the effect that ASU 2016-09 will have on our consolidated financial statements and related disclosures. |
Operating Segments (Tables)
Operating Segments (Tables) | 9 Months Ended |
Oct. 02, 2016 | |
Segment Reporting [Abstract] | |
Operating Segment Information | Our measure of segment assets does not include cash, goodwill, intangible assets, deferred tax assets, or corporate assets. All goodwill is allocated to reporting units of our segments for purposes of impairment testing. Broadcast Solutions Enterprise Connectivity Solutions Industrial Connectivity Solutions Industrial IT Solutions Network Security Solutions Total Segments (In thousands) As of and for the three months ended October 2, 2016 Segment revenues $ 196,173 $ 156,658 $ 149,847 $ 60,168 $ 39,622 $ 602,468 Affiliate revenues 46 1,587 511 13 — 2,157 Segment EBITDA 36,545 27,294 23,649 12,771 11,677 111,936 Depreciation expense 4,063 3,210 2,738 565 1,027 11,603 Amortization expense 10,955 431 604 1,501 10,317 23,808 Severance, restructuring, and acquisition integration costs 174 5,573 4,746 2,302 — 12,795 Deferred gross profit adjustments 283 — — — 1,076 1,359 Segment assets 314,020 265,085 261,923 62,828 43,110 946,966 As of and for the three months ended September 27, 2015 Segment revenues $ 186,722 $ 155,148 $ 147,702 $ 59,184 $ 41,359 $ 590,115 Affiliate revenues 42 1,630 355 37 — 2,064 Segment EBITDA 27,369 25,705 23,225 10,466 11,240 98,005 Depreciation expense 4,027 3,156 2,810 570 1,255 11,818 Amortization expense 12,354 429 799 1,480 10,607 25,669 Severance, restructuring, and acquisition integration costs 13,722 192 118 54 57 14,143 Deferred gross profit adjustments 419 — — — 10,909 11,328 Segment assets 346,271 266,248 250,622 61,441 41,520 966,102 As of and for the nine months ended October 2, 2016 Segment revenues $ 560,966 $ 452,951 $ 438,746 $ 176,560 $ 120,426 $ 1,749,649 Affiliate revenues 644 4,615 906 44 — 6,209 Segment EBITDA 89,317 80,605 73,700 34,056 32,659 310,337 Depreciation expense 12,086 10,028 8,165 1,749 3,225 35,253 Amortization expense 37,306 1,292 1,796 4,517 30,692 75,603 Severance, restructuring, and acquisition integration costs 5,871 7,280 7,982 5,910 29 27,072 Purchase accounting effects of acquisitions 195 — — — — 195 Deferred gross profit adjustments 1,391 — — — 4,021 5,412 Segment assets 314,020 265,085 261,923 62,828 43,110 946,966 As of and for the nine months ended September 27, 2015 Segment revenues $ 538,145 $ 458,756 $ 461,549 $ 181,527 $ 118,102 $ 1,758,079 Affiliate revenues 24 5,328 1,086 68 8 6,514 Segment EBITDA 73,374 75,506 76,078 31,731 29,913 286,602 Depreciation expense 12,140 9,550 8,530 1,713 3,118 35,051 Amortization expense 37,375 1,290 2,429 4,369 32,627 78,090 Severance, restructuring, and acquisition integration costs 28,532 843 3,054 2 1,102 33,533 Purchase accounting effects of acquisitions — — 267 — 9,155 9,422 Deferred gross profit adjustments 2,789 — — — 43,637 46,426 Segment assets 346,271 266,248 250,622 61,441 41,520 966,102 |
Reconciliation of Total Reportable Segments' Revenues and EBITDA to Consolidated Revenues and Consolidated Income from Continuing Operations Before Taxes | The following table is a reconciliation of the total of the reportable segments’ Revenues and EBITDA to consolidated revenues and consolidated income from continuing operations before taxes, respectively. Three Months Ended Nine Months Ended October 2, 2016 September 27, 2015 October 2, 2016 September 27, 2015 (In thousands) (In thousands) Total Segment Revenues $ 602,468 $ 590,115 $ 1,749,649 $ 1,758,079 Deferred revenue adjustments (1) (1,359 ) (10,849 ) (5,412 ) (46,101 ) Consolidated Revenues $ 601,109 $ 579,266 $ 1,744,237 $ 1,711,978 Total Segment EBITDA $ 111,936 $ 98,005 $ 310,337 $ 286,602 Amortization of intangibles (23,808 ) (25,669 ) (75,603 ) (78,090 ) Deferred gross profit adjustments (1) (1,359 ) (11,328 ) (5,412 ) (46,426 ) Severance, restructuring, and acquisition integration costs (2) (12,795 ) (14,143 ) (27,072 ) (33,533 ) Depreciation expense (11,603 ) (11,818 ) (35,253 ) (35,051 ) Purchase accounting effects related to acquisitions (3) — — (195 ) (9,422 ) Income from equity method investment 586 348 1,077 1,459 Eliminations (977 ) (893 ) (2,694 ) (1,996 ) Consolidated operating income 61,980 34,502 165,185 83,543 Interest expense, net (23,513 ) (25,416 ) (71,958 ) (74,031 ) Consolidated income from continuing operations before taxes $ 38,467 $ 9,086 $ 93,227 $ 9,512 (1) For both the three and nine months ended October 2, 2016 and September 27, 2015 , both our consolidated revenues and gross profit were negatively impacted by the reduction of the acquired deferred revenue balance to fair value associated with our 2015 acquisition of Tripwire. (2) See Note 7, Severance, Restructuring, and Acquisition Integration Activities, for details . (3) For the nine months ended October 2, 2016 , we recognized $0.2 million of cost of sales related to the adjustment of acquired inventory to fair value related to our acquisition of M2FX. For the nine months ended September 27, 2015 , we recognized $9.2 million of compensation expense related to the accelerated vesting of acquiree stock based compensation awards associated with our acquisition of Tripwire. In addition, we recognized $0.3 million of cost of sales related to the adjustment of acquired inventory to fair value related to our acquisition of Coast. |
Income per Share (Tables)
Income per Share (Tables) | 9 Months Ended |
Oct. 02, 2016 | |
Earnings Per Share [Abstract] | |
Basis for Income Per Share Computations | The following table presents the basis for the income per share computations: Three Months Ended Nine Months Ended October 2, 2016 September 27, 2015 October 2, 2016 September 27, 2015 (In thousands) Numerator: Income from continuing operations $ 35,565 $ 14,811 $ 93,740 $ 16,852 Less: Net loss attributable to noncontrolling interest (88 ) — (286 ) — Less: Preferred stock dividends 6,695 — 6,695 — Income from continuing operations attributable to Belden common stockholders 28,958 14,811 87,331 16,852 Loss from discontinued operations, net of tax, attributable to Belden common stockholders — (242 ) — (242 ) Loss from disposal of discontinued operations, net of tax, attributable to Belden common stockholders — — — (86 ) Net income attributable to Belden common stockholders $ 28,958 $ 14,569 $ 87,331 $ 16,524 Denominator: Weighted average shares outstanding, basic 42,126 42,417 42,073 42,536 Effect of dilutive common stock equivalents 475 491 459 581 Weighted average shares outstanding, diluted 42,601 42,908 42,532 43,117 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Oct. 02, 2016 | |
Inventory Disclosure [Abstract] | |
Major Classes of Inventories | The major classes of inventories were as follows: October 2, 2016 December 31, 2015 (In thousands) Raw materials $ 94,789 $ 92,929 Work-in-process 24,627 27,730 Finished goods 99,477 97,814 Gross inventories 218,893 218,473 Excess and obsolete reserves (25,393 ) (22,531 ) Net inventories $ 193,500 $ 195,942 |
Severance, Restructuring, and24
Severance, Restructuring, and Acquisition Integration Activities (Tables) | 9 Months Ended |
Oct. 02, 2016 | |
Restructuring and Related Activities [Abstract] | |
Severance, Restructuring and Integration Costs by Segment | The following table summarizes the costs by segment of the various programs described above: Three Months Ended October 2, 2016 Severance Other Restructuring and Integration Costs Total Costs (In thousands) Broadcast Solutions $ (114 ) $ 288 $ 174 Enterprise Connectivity Solutions (21 ) 5,594 5,573 Industrial Connectivity Solutions 184 4,562 4,746 Industrial IT Solutions 1,103 1,199 2,302 Network Security Solutions — — — Total $ 1,152 $ 11,643 $ 12,795 Three Months Ended September 27, 2015 Broadcast Solutions $ 11,978 $ 1,744 $ 13,722 Enterprise Connectivity Solutions 99 93 192 Industrial Connectivity Solutions — 118 118 Industrial IT Solutions — 54 54 Network Security Solutions — 57 57 Total $ 12,077 $ 2,066 $ 14,143 Nine Months Ended October 2, 2016 Broadcast Solutions $ (865 ) $ 6,736 $ 5,871 Enterprise Connectivity Solutions 55 7,225 7,280 Industrial Connectivity Solutions 1,961 6,021 7,982 Industrial IT Solutions 3,734 2,176 5,910 Network Security Solutions — 29 29 Total $ 4,885 $ 22,187 $ 27,072 Nine Months Ended September 27, 2015 Broadcast Solutions $ 12,691 $ 15,852 $ 28,543 Enterprise Connectivity Solutions 171 661 832 Industrial Connectivity Solutions 967 2,087 3,054 Industrial IT Solutions (740 ) 742 2 Network Security Solutions — 1,102 1,102 Total $ 13,089 $ 20,444 $ 33,533 |
Summary of Significant Severance Activity | The table below sets forth the activity that occurred for the programs described above with significant severance costs. The balances are included in accrued liabilities. Grass Valley Restructuring Industrial Restructuring (In thousands) Balance at December 31, 2015 $ 12,076 $ 2,947 New charges 886 2,919 Cash payments (4,404 ) (1,967 ) Foreign currency translation 167 94 Other adjustments (1,528 ) — Balance at April 3, 2016 $ 7,197 $ 3,993 New charges 251 1,489 Cash payments (3,356 ) (1,685 ) Foreign currency translation (13 ) (42 ) Other adjustments (360 ) — Balance at July 3, 2016 $ 3,719 $ 3,755 New charges 148 1,287 Cash payments (1,945 ) (743 ) Foreign currency translation 32 51 Other adjustments (262 ) — Balance at October 2, 2016 $ 1,692 $ 4,350 |
Long-Term Debt and Other Borr25
Long-Term Debt and Other Borrowing Arrangements (Tables) | 9 Months Ended |
Oct. 02, 2016 | |
Debt Disclosure [Abstract] | |
Carrying Values of Long-Term Debt and Other Borrowing Arrangements | The carrying values of our long-term debt and other borrowing arrangements were as follows: October 2, 2016 December 31, 2015 (In thousands) Revolving credit agreement due 2018 $ — $ 50,000 Variable rate term loan due 2020 242,152 243,965 Senior subordinated notes: 5.25% Senior subordinated notes due 2024 200,000 200,000 5.50% Senior subordinated notes due 2023 568,449 553,835 5.50% Senior subordinated notes due 2022 700,000 700,000 9.25% Senior subordinated notes due 2019 5,221 5,221 Total senior subordinated notes 1,473,670 1,459,056 Total gross debt and other borrowing arrangements 1,715,822 1,753,021 Less unamortized debt issuance costs (22,390 ) (25,239 ) Total net debt and other borrowing arrangements 1,693,432 1,727,782 Less current maturities of Term Loan (2,500 ) (2,500 ) Long-term debt $ 1,690,932 $ 1,725,282 |
Pension and Other Postretirem26
Pension and Other Postretirement Obligations (Tables) | 9 Months Ended |
Oct. 02, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of Net Periodic Benefit Costs | The following table provides the components of net periodic benefit costs for our pension and other postretirement benefit plans: Pension Obligations Other Postretirement Obligations Three Months Ended October 2, 2016 September 27, 2015 October 2, 2016 September 27, 2015 (In thousands) Service cost $ 1,282 $ 1,344 $ 11 $ 11 Interest cost 2,202 2,164 305 274 Expected return on plan assets (2,931 ) (3,202 ) — — Amortization of prior service credit (11 ) (15 ) (11 ) (16 ) Actuarial losses 659 1,349 29 107 Settlement loss 7,385 — — — Net periodic benefit cost $ 8,586 $ 1,640 $ 334 $ 376 Nine Months Ended Service cost $ 4,118 $ 4,562 $ 40 $ 43 Interest cost 7,020 6,909 1,152 1,076 Expected return on plan assets (9,339 ) (9,515 ) — — Amortization of prior service credit (29 ) (41 ) (33 ) (66 ) Actuarial losses 2,067 3,923 260 359 Settlement loss 7,385 — — — Net periodic benefit cost $ 11,222 $ 5,838 $ 1,419 $ 1,412 |
Comprehensive Income and Accu27
Comprehensive Income and Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Oct. 02, 2016 | |
Equity [Abstract] | |
Total Comprehensive Income | The following table summarizes total comprehensive income (loss): Three Months Ended Nine Months Ended October 2, 2016 September 27, 2015 October 2, 2016 September 27, 2015 (In thousands) Net income $ 35,565 $ 14,569 $ 93,740 $ 16,524 Foreign currency translation loss, net of $0.4 million, $2.1 million, $1.5 million, and $0.0 million tax, respectively (8,762 ) (25,249 ) (9,855 ) (15,056 ) Adjustments to pension and postretirement liability, net of $3.1 million, $0.5 million, $3.7 million, and $1.6 million tax, respectively 4,952 877 5,934 2,568 Total comprehensive income (loss) $ 31,755 $ (9,803 ) $ 89,819 $ 4,036 Less: Comprehensive loss attributable to noncontrolling interest (91 ) — (318 ) — Comprehensive income (loss) attributable to Belden $ 31,846 $ (9,803 ) $ 90,137 $ 4,036 |
Components of Other Comprehensive Income (Loss), Net of Tax | The accumulated balances related to each component of other comprehensive income (loss), net of tax, are as follows: Foreign Currency Translation Component Pension and Other Postretirement Benefit Plans Accumulated Other Comprehensive Income (Loss) (In thousands) Balance at December 31, 2015 $ (23,411 ) $ (35,576 ) $ (58,987 ) Other comprehensive loss attributable to Belden before reclassifications (9,823 ) — (9,823 ) Amounts reclassified from accumulated other comprehensive income (loss) — 5,934 5,934 Net current period other comprehensive loss attributable to Belden (9,823 ) 5,934 (3,889 ) Balance at October 2, 2016 $ (33,234 ) $ (29,642 ) $ (62,876 ) |
Summary of Effects of Reclassifications from Accumulated Other Comprehensive Income (Loss) | The following table summarizes the effects of reclassifications from accumulated other comprehensive income (loss) for the nine months ended October 2, 2016 : Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Consolidated Statements of Operations and Comprehensive Income (In thousands) Amortization of pension and other postretirement benefit plan items: Settlement loss $ 7,385 (1) Actuarial losses 2,327 (1) Prior service credit (62 ) (1) Total before tax 9,650 Tax benefit (3,716 ) Net of tax $ 5,934 (1) The amortization of these accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit costs (see Note 10). |
Summary of Significant Accoun28
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 02, 2016USD ($) | Sep. 27, 2015USD ($) | Oct. 02, 2016USD ($)Segment | Sep. 27, 2015USD ($) | Dec. 31, 2015USD ($) | |
Significant Accounting Policies [Line Items] | |||||
Number of global business platforms | Segment | 5 | ||||
Loss from disposal of discontinued operations, net of tax | $ 0 | $ 0 | $ 0 | $ (86) | |
Trapeze [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Gain/(Loss) on disposal of discontinued operations, before income tax | $ (200) | (200) | |||
Loss from disposal of discontinued operations, net of tax | $ (100) | ||||
Current Assets [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Decrease in value of assets and liabilities due to adoption of ASU | $ 6,000 | ||||
Other Long-Lived Assets [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Decrease in value of assets and liabilities due to adoption of ASU | 19,200 | ||||
Long-Term Debt [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Decrease in value of assets and liabilities due to adoption of ASU | $ 25,200 | ||||
Standby Letters of Credit [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Loss contingency, range of possible loss, portion not accrued | 8,600 | 8,600 | |||
Bank Guaranties [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Loss contingency, range of possible loss, portion not accrued | 3,000 | 3,000 | |||
Surety Bonds [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Loss contingency, range of possible loss, portion not accrued | $ 2,400 | $ 2,400 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - M2FX Limited [Member] $ in Millions | Jan. 07, 2016USD ($) |
Business Acquisition [Line Items] | |
Percentage of outstanding shares acquired | 100.00% |
Acquisition price | $ 18.9 |
Estimated earn out consideration | $ 3.3 |
Operating Segments - Additional
Operating Segments - Additional Information (Detail) | 9 Months Ended |
Oct. 02, 2016Segment | |
Segment Reporting [Abstract] | |
Number of global business platforms | 5 |
Operating Segments - Operating
Operating Segments - Operating Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 02, 2016 | Sep. 27, 2015 | Oct. 02, 2016 | Sep. 27, 2015 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||
Depreciation expense | $ 11,600 | $ 11,800 | $ 35,300 | $ 35,100 | |
Amortization expense | 23,808 | 25,669 | 75,603 | 78,090 | |
Severance, restructuring, and acquisition integration costs | 12,795 | 14,143 | 27,072 | 33,533 | |
Segment assets | 3,811,963 | 3,811,963 | $ 3,290,602 | ||
Broadcast Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Severance, restructuring, and acquisition integration costs | 174 | 13,722 | 5,871 | 28,543 | |
Enterprise Connectivity Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Severance, restructuring, and acquisition integration costs | 5,573 | 192 | 7,280 | 832 | |
Industrial Connectivity Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Severance, restructuring, and acquisition integration costs | 4,746 | 118 | 7,982 | 3,054 | |
Network Security Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Severance, restructuring, and acquisition integration costs | 0 | 57 | 29 | 1,102 | |
Reportable Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenues | 602,468 | 590,115 | 1,749,649 | 1,758,079 | |
Affiliate revenues | 2,157 | 2,064 | 6,209 | 6,514 | |
Segment EBITDA | 111,936 | 98,005 | 310,337 | 286,602 | |
Depreciation expense | 11,603 | 11,818 | 35,253 | 35,051 | |
Amortization expense | 23,808 | 25,669 | 75,603 | 78,090 | |
Severance, restructuring, and acquisition integration costs | 12,795 | 14,143 | 27,072 | 33,533 | |
Purchase accounting effects of acquisitions | 0 | 0 | 195 | 9,422 | |
Deferred gross profit adjustments | 1,359 | 11,328 | 5,412 | 46,426 | |
Segment assets | 946,966 | 966,102 | 946,966 | 966,102 | |
Reportable Segment [Member] | Broadcast Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenues | 196,173 | 186,722 | 560,966 | 538,145 | |
Affiliate revenues | 46 | 42 | 644 | 24 | |
Segment EBITDA | 36,545 | 27,369 | 89,317 | 73,374 | |
Depreciation expense | 4,063 | 4,027 | 12,086 | 12,140 | |
Amortization expense | 10,955 | 12,354 | 37,306 | 37,375 | |
Severance, restructuring, and acquisition integration costs | 174 | 13,722 | 5,871 | 28,532 | |
Purchase accounting effects of acquisitions | 195 | 0 | |||
Deferred gross profit adjustments | 283 | 419 | 1,391 | 2,789 | |
Segment assets | 314,020 | 346,271 | 314,020 | 346,271 | |
Reportable Segment [Member] | Enterprise Connectivity Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenues | 156,658 | 155,148 | 452,951 | 458,756 | |
Affiliate revenues | 1,587 | 1,630 | 4,615 | 5,328 | |
Segment EBITDA | 27,294 | 25,705 | 80,605 | 75,506 | |
Depreciation expense | 3,210 | 3,156 | 10,028 | 9,550 | |
Amortization expense | 431 | 429 | 1,292 | 1,290 | |
Severance, restructuring, and acquisition integration costs | 5,573 | 192 | 7,280 | 843 | |
Purchase accounting effects of acquisitions | 0 | 0 | |||
Deferred gross profit adjustments | 0 | 0 | 0 | 0 | |
Segment assets | 265,085 | 266,248 | 265,085 | 266,248 | |
Reportable Segment [Member] | Industrial Connectivity Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenues | 149,847 | 147,702 | 438,746 | 461,549 | |
Affiliate revenues | 511 | 355 | 906 | 1,086 | |
Segment EBITDA | 23,649 | 23,225 | 73,700 | 76,078 | |
Depreciation expense | 2,738 | 2,810 | 8,165 | 8,530 | |
Amortization expense | 604 | 799 | 1,796 | 2,429 | |
Severance, restructuring, and acquisition integration costs | 4,746 | 118 | 7,982 | 3,054 | |
Purchase accounting effects of acquisitions | 0 | 267 | |||
Deferred gross profit adjustments | 0 | 0 | 0 | 0 | |
Segment assets | 261,923 | 250,622 | 261,923 | 250,622 | |
Reportable Segment [Member] | Industrial IT Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenues | 60,168 | 59,184 | 176,560 | 181,527 | |
Affiliate revenues | 13 | 37 | 44 | 68 | |
Segment EBITDA | 12,771 | 10,466 | 34,056 | 31,731 | |
Depreciation expense | 565 | 570 | 1,749 | 1,713 | |
Amortization expense | 1,501 | 1,480 | 4,517 | 4,369 | |
Severance, restructuring, and acquisition integration costs | 2,302 | 54 | 5,910 | 2 | |
Purchase accounting effects of acquisitions | 0 | 0 | |||
Deferred gross profit adjustments | 0 | 0 | 0 | 0 | |
Segment assets | 62,828 | 61,441 | 62,828 | 61,441 | |
Reportable Segment [Member] | Network Security Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenues | 39,622 | 41,359 | 120,426 | 118,102 | |
Affiliate revenues | 0 | 0 | 0 | 8 | |
Segment EBITDA | 11,677 | 11,240 | 32,659 | 29,913 | |
Depreciation expense | 1,027 | 1,255 | 3,225 | 3,118 | |
Amortization expense | 10,317 | 10,607 | 30,692 | 32,627 | |
Severance, restructuring, and acquisition integration costs | 0 | 57 | 29 | 1,102 | |
Purchase accounting effects of acquisitions | 0 | 9,155 | |||
Deferred gross profit adjustments | 1,076 | 10,909 | 4,021 | 43,637 | |
Segment assets | $ 43,110 | $ 41,520 | $ 43,110 | $ 41,520 |
Operating Segments - Reconcilia
Operating Segments - Reconciliation of Total Reportable Segments' Revenues and EBITDA to Consolidated Revenues and Consolidated Income from Continuing Operations Before Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2016 | Sep. 27, 2015 | Oct. 02, 2016 | Sep. 27, 2015 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Consolidated Revenues | $ 601,109 | $ 579,266 | $ 1,744,237 | $ 1,711,978 |
Amortization of intangibles | (23,808) | (25,669) | (75,603) | (78,090) |
Severance, restructuring, and acquisition integration costs | (12,795) | (14,143) | (27,072) | (33,533) |
Depreciation expense | (11,600) | (11,800) | (35,300) | (35,100) |
Operating income | 61,980 | 34,502 | 165,185 | 83,543 |
Interest expense, net | (23,513) | (25,416) | (71,958) | (74,031) |
Income from continuing operations before taxes | 38,467 | 9,086 | 93,227 | 9,512 |
Reportable Segment [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total Segment Revenues | 602,468 | 590,115 | 1,749,649 | 1,758,079 |
Deferred revenue adjustments | (1,359) | (10,849) | (5,412) | (46,101) |
Consolidated Revenues | 601,109 | 579,266 | 1,744,237 | 1,711,978 |
Total Segment EBITDA | 111,936 | 98,005 | 310,337 | 286,602 |
Amortization of intangibles | (23,808) | (25,669) | (75,603) | (78,090) |
Deferred gross profit adjustments | (1,359) | (11,328) | (5,412) | (46,426) |
Severance, restructuring, and acquisition integration costs | (12,795) | (14,143) | (27,072) | (33,533) |
Depreciation expense | (11,603) | (11,818) | (35,253) | (35,051) |
Purchase accounting effects related to acquisitions | 0 | 0 | (195) | (9,422) |
Income from equity method investment | 586 | 348 | 1,077 | 1,459 |
Eliminations [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating income | $ (977) | $ (893) | $ (2,694) | $ (1,996) |
Operating Segments - Reconcil33
Operating Segments - Reconciliation of Total Reportable Segments' Revenues and EBITDA to Consolidated Revenues and Consolidated Income from Continuing Operations Before Taxes (Footnotes) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2016 | Sep. 27, 2015 | Oct. 02, 2016 | Sep. 27, 2015 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Cost of sales related to adjustment of acquired inventory | $ 355,147 | $ 353,135 | $ 1,025,027 | $ 1,043,922 |
M2FX Limited [Member] | Fair Value Adjustment to Inventory [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Cost of sales related to adjustment of acquired inventory | $ 200 | |||
Tripwire [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Compensation expense | 9,200 | |||
Coast Wire And Plastic Tech [Member] | Fair Value Adjustment to Inventory [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Cost of sales related to adjustment of acquired inventory | $ 300 |
Income Per Share - Basis for In
Income Per Share - Basis for Income Per Share Computations (Detail) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2016 | Sep. 27, 2015 | Oct. 02, 2016 | Sep. 27, 2015 | |
Earnings Per Share [Abstract] | ||||
Income from continuing operations | $ 35,565 | $ 14,811 | $ 93,740 | $ 16,852 |
Less: Net loss attributable to noncontrolling interest | (88) | 0 | (286) | 0 |
Less: Preferred stock dividends | 6,695 | 0 | 6,695 | 0 |
Income from continuing operations attributable to Belden common stockholders | 28,958 | 14,811 | 87,331 | 16,852 |
Loss from discontinued operations, net of tax, attributable to Belden common stockholders | 0 | (242) | 0 | (242) |
Loss from disposal of discontinued operations, net of tax, attributable to Belden common stockholders | 0 | 0 | 0 | (86) |
Net income attributable to Belden common stockholders | $ 28,958 | $ 14,569 | $ 87,331 | $ 16,524 |
Weighted average shares outstanding, basic (in shares) | 42,126 | 42,417 | 42,073 | 42,536 |
Effect of dilutive common stock equivalents (in shares) | 475 | 491 | 459 | 581 |
Weighted average shares outstanding, diluted (in shares) | 42,601 | 42,908 | 42,532 | 43,117 |
Income Per Share - Additional I
Income Per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2016 | Sep. 27, 2015 | Oct. 02, 2016 | Sep. 27, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares excluded from diluted weighted average shares outstanding | 0.2 | 0.5 | 0.5 | 0.3 |
Convertible Preferred Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares excluded from diluted weighted average shares outstanding | 5.2 | 1.7 |
Inventories - Major Classes of
Inventories - Major Classes of Inventories (Detail) - USD ($) $ in Thousands | Oct. 02, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 94,789 | $ 92,929 |
Work-in-process | 24,627 | 27,730 |
Finished goods | 99,477 | 97,814 |
Gross inventories | 218,893 | 218,473 |
Excess and obsolete reserves | (25,393) | (22,531) |
Net inventories | $ 193,500 | $ 195,942 |
Long-Lived Assets - Additional
Long-Lived Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2016 | Sep. 27, 2015 | Oct. 02, 2016 | Sep. 27, 2015 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 11,600 | $ 11,800 | $ 35,300 | $ 35,100 |
Amortization of intangible assets | $ 23,808 | $ 25,669 | $ 75,603 | $ 78,090 |
Severance, Restructuring and Ac
Severance, Restructuring and Acquisition Integration Activities - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||
Dec. 31, 2016 | Oct. 02, 2016 | Apr. 03, 2016 | Dec. 31, 2015 | Sep. 27, 2015 | Dec. 31, 2017 | Oct. 02, 2016 | Sep. 27, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||||||||
Severance, restructuring, and acquisition integration costs | $ 12,795 | $ 14,143 | $ 27,072 | $ 33,533 | ||||
Cost of Sales [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Severance, restructuring, and acquisition integration costs | 2,900 | 3,200 | 6,800 | 6,300 | ||||
Selling, General and Administrative Expenses [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Severance, restructuring, and acquisition integration costs | 9,900 | 9,300 | 19,600 | 23,800 | ||||
Research and Development [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Severance, restructuring, and acquisition integration costs | 0 | 1,600 | 700 | 3,400 | ||||
Industrial Restructuring Program [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Severance, restructuring, and acquisition integration costs | 2,600 | 8,400 | ||||||
Expected savings from the restructuring program | $ 18,000 | |||||||
Industrial Manufacturing Footprint Program [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Severance, restructuring, and acquisition integration costs | 10,000 | 12,500 | ||||||
Industrial Manufacturing Footprint Program [Member] | Scenario, Forecast [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Additional severance and other restructuring costs | $ 5,000 | $ 15,000 | ||||||
Expected savings from the restructuring program | $ 10,000 | |||||||
Grass Valley Restructuring Program [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Severance, restructuring, and acquisition integration costs | 100 | 5,100 | ||||||
Savings from the restructuring program | $ 30,000 | |||||||
Grass Valley Restructuring Program [Member] | Scenario, Forecast [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Estimated severance charges and other restructuring costs | $ 1,000 | |||||||
Productivity Improvement Program and Acquisition Integration [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Severance, restructuring, and acquisition integration costs | $ 100 | $ 19,500 | ||||||
Productivity Improvement Program and Acquisition Integration [Member] | M2FX Limited [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Severance, restructuring, and acquisition integration costs | $ 100 | $ 1,100 | ||||||
Maximum [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and integration cost payable period | 60 days |
Severance, Restructuring and 39
Severance, Restructuring and Acquisition Integration Activities - Severance, Restructuring and Integration Costs by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2016 | Sep. 27, 2015 | Oct. 02, 2016 | Sep. 27, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||||
Total Costs | $ 12,795 | $ 14,143 | $ 27,072 | $ 33,533 |
Broadcast Solutions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total Costs | 174 | 13,722 | 5,871 | 28,543 |
Enterprise Connectivity Solutions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total Costs | 5,573 | 192 | 7,280 | 832 |
Industrial Connectivity Solutions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total Costs | 4,746 | 118 | 7,982 | 3,054 |
Industrial IT Segment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total Costs | 2,302 | 54 | 5,910 | 2 |
Network Security Solutions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total Costs | 0 | 57 | 29 | 1,102 |
Employee Severance [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance | 1,152 | 12,077 | 4,885 | 13,089 |
Employee Severance [Member] | Broadcast Solutions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance | (114) | 11,978 | (865) | 12,691 |
Employee Severance [Member] | Enterprise Connectivity Solutions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance | (21) | 99 | 55 | 171 |
Employee Severance [Member] | Industrial Connectivity Solutions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance | 184 | 0 | 1,961 | 967 |
Employee Severance [Member] | Industrial IT Segment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance | 1,103 | 0 | 3,734 | (740) |
Employee Severance [Member] | Network Security Solutions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance | 0 | 0 | 0 | 0 |
Other Than Severance Costs Restructuring and Integration Costs Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Restructuring and Integration Costs | 11,643 | 2,066 | 22,187 | 20,444 |
Other Than Severance Costs Restructuring and Integration Costs Member] | Broadcast Solutions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Restructuring and Integration Costs | 288 | 1,744 | 6,736 | 15,852 |
Other Than Severance Costs Restructuring and Integration Costs Member] | Enterprise Connectivity Solutions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Restructuring and Integration Costs | 5,594 | 93 | 7,225 | 661 |
Other Than Severance Costs Restructuring and Integration Costs Member] | Industrial Connectivity Solutions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Restructuring and Integration Costs | 4,562 | 118 | 6,021 | 2,087 |
Other Than Severance Costs Restructuring and Integration Costs Member] | Industrial IT Segment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Restructuring and Integration Costs | 1,199 | 54 | 2,176 | 742 |
Other Than Severance Costs Restructuring and Integration Costs Member] | Network Security Solutions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Restructuring and Integration Costs | $ 0 | $ 57 | $ 29 | $ 1,102 |
Severance, Restructuring and 40
Severance, Restructuring and Acquisition Integration Activities - Summary of Significant Severance Activity (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Oct. 02, 2016 | Jul. 03, 2016 | Apr. 03, 2016 | Sep. 27, 2015 | Oct. 02, 2016 | Sep. 27, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||||||
New charges | $ 12,795 | $ 14,143 | $ 27,072 | $ 33,533 | ||
Grass Valley Restructuring Program [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
New charges | 100 | 5,100 | ||||
Industrial Restructuring Program [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
New charges | 2,600 | 8,400 | ||||
Employee Severance [Member] | Grass Valley Restructuring Program [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Beginning balance | 3,719 | $ 7,197 | $ 12,076 | 12,076 | ||
New charges | 148 | 251 | 886 | |||
Cash payments | (1,945) | (3,356) | (4,404) | |||
Foreign currency translation | 32 | (13) | 167 | |||
Other adjustments | (262) | (360) | (1,528) | |||
Ending balance | 1,692 | 3,719 | 7,197 | 1,692 | ||
Employee Severance [Member] | Industrial Restructuring Program [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Beginning balance | 3,755 | 3,993 | 2,947 | 2,947 | ||
New charges | 1,287 | 1,489 | 2,919 | |||
Cash payments | (743) | (1,685) | (1,967) | |||
Foreign currency translation | 51 | (42) | 94 | |||
Other adjustments | 0 | 0 | 0 | |||
Ending balance | $ 4,350 | $ 3,755 | $ 3,993 | $ 4,350 |
Long-Term Debt and Other Borr41
Long-Term Debt and Other Borrowing Arrangements - Carrying Values of Long-Term Debt and Other Borrowing Arrangements (Detail) - USD ($) $ in Thousands | Oct. 02, 2016 | Jan. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | |||
Total senior subordinated notes | $ 1,473,670 | $ 1,459,056 | |
Total gross debt and other borrowing arrangements | 1,715,822 | 1,753,021 | |
Less unamortized debt issuance costs | (22,390) | (25,239) | |
Total net debt and other borrowing arrangements | 1,693,432 | 1,727,782 | |
Less current maturities of Term Loan | (2,500) | (2,500) | |
Long-term debt | 1,690,932 | 1,725,282 | |
Revolving Credit Agreement Mature 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Revolving credit agreement due 2018 | 0 | $ 200,000 | 50,000 |
Variable Term loan Due 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Variable rate term loan due 2020 | 242,152 | 243,965 | |
5.25% Senior Subordinated Notes Due 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Total senior subordinated notes | $ 200,000 | $ 200,000 | |
Senior subordinated notes interest rate | 5.25% | 5.25% | |
5.50% Senior subordinated notes due 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Total senior subordinated notes | $ 568,449 | $ 553,835 | |
Senior subordinated notes interest rate | 5.50% | 5.50% | |
5.50% Senior subordinated notes due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Total senior subordinated notes | $ 700,000 | $ 700,000 | |
Senior subordinated notes interest rate | 5.50% | 5.50% | |
9.25% Senior Subordinated Notes Due 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Total senior subordinated notes | $ 5,221 | $ 5,221 | |
Senior subordinated notes interest rate | 9.25% | 9.25% |
Long-Term Debt and Other Borr42
Long-Term Debt and Other Borrowing Arrangements - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Apr. 03, 2016USD ($) | Dec. 31, 2015USD ($) | Oct. 02, 2016USD ($) | Sep. 27, 2015USD ($) | Dec. 31, 2013USD ($) | Oct. 02, 2016EUR (€) | Jan. 31, 2016USD ($) | |
Debt Instrument [Line Items] | |||||||
Term Loan | $ 0 | $ 200,000,000 | |||||
Senior subordinated notes | $ 1,459,056,000 | 1,473,670,000 | |||||
Senior Subordinated Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Fair value of debt instrument | 1,524,700,000 | ||||||
Revolving Credit Agreement Mature 2018 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Borrowing under line of credit facility | 400,000,000 | ||||||
Revolving credit agreement | 50,000,000 | 0 | $ 200,000,000 | ||||
Line of credit repayments made | $ 50,000,000 | $ 150,000,000 | |||||
Line of credit borrowing base | $ 275,100,000 | ||||||
Line of credit commitment fees | 0.375% | ||||||
Revolving credit facility restrictive covenants fixed charge coverage ratio minimum threshold | 90.00% | ||||||
Revolving Credit Agreement Mature 2018 [Member] | Minimum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit spread on variable rate | 1.25% | ||||||
Revolving Credit Agreement Mature 2018 [Member] | Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit spread on variable rate | 1.75% | ||||||
Variable Term loan Due 2020 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Term Loan | $ 250,000,000 | ||||||
Quarterly amortization payments | $ 600,000 | ||||||
Effective interest rate of senior subordinated notes | 5.00% | 5.00% | |||||
5.25% Senior Subordinated Notes Due 2024 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Senior subordinated notes interest rate | 5.25% | 5.25% | 5.25% | ||||
Senior subordinated notes | $ 200,000,000 | $ 200,000,000 | |||||
5.25% Senior Subordinated Notes Due 2024 [Member] | Senior Subordinate Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount outstanding of senior subordinated notes | $ 200,000,000 | ||||||
Senior subordinated notes interest rate | 5.25% | 5.25% | |||||
5.50% Senior subordinated notes due 2023 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Senior subordinated notes interest rate | 5.50% | 5.50% | 5.50% | ||||
Senior subordinated notes | $ 553,835,000 | $ 568,449,000 | |||||
5.50% Senior subordinated notes due 2023 [Member] | Senior Subordinate Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount outstanding of senior subordinated notes | € | € 500,000,000 | ||||||
Senior subordinated notes interest rate | 5.50% | 5.50% | |||||
Senior subordinated notes | $ 568,400,000 | ||||||
5.50% Senior subordinated notes due 2022 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Senior subordinated notes interest rate | 5.50% | 5.50% | 5.50% | ||||
Senior subordinated notes | $ 700,000,000 | $ 700,000,000 | |||||
5.50% Senior subordinated notes due 2022 [Member] | Senior Subordinate Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount outstanding of senior subordinated notes | $ 700,000,000 | ||||||
Senior subordinated notes interest rate | 5.50% | 5.50% | |||||
9.25% Senior Subordinated Notes Due 2019 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Effective interest rate of senior subordinated notes | 9.75% | 9.75% | |||||
Aggregate principal amount outstanding of senior subordinated notes | $ 5,200,000 | ||||||
Senior subordinated notes interest rate | 9.25% | 9.25% | 9.25% | ||||
Senior subordinated notes | $ 5,221,000 | $ 5,221,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2016 | Sep. 27, 2015 | Oct. 02, 2016 | Sep. 27, 2015 | |
Income tax benefit (expense) | $ (2,902) | $ 5,725 | $ 513 | $ 7,340 |
Effective tax rate | 7.50% | (63.00%) | (0.60%) | (77.20%) |
Foreign tax benefit recognized | $ 2,900 | $ 11,000 | ||
Deferred tax benefit recognized | 7,000 | |||
Income tax expense (benefit) due to changes in the valuation allowance | $ (2,200) | (6,000) | $ (1,500) | |
Foreign Tax Authority [Member] | ||||
Net change in reserve for uncertain tax positions | $ 2,700 |
Pension and Other Postretirem44
Pension and Other Postretirement Obligations - Components of Net Periodic Benefit Costs (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2016 | Sep. 27, 2015 | Oct. 02, 2016 | Sep. 27, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected return on plan assets | $ 0 | $ 0 | $ 0 | $ 0 |
Pension Obligations [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 1,282 | 1,344 | 4,118 | 4,562 |
Interest cost | 2,202 | 2,164 | 7,020 | 6,909 |
Expected return on plan assets | (2,931) | (3,202) | (9,339) | (9,515) |
Amortization of prior service credit | (11) | (15) | (29) | (41) |
Actuarial losses | 659 | 1,349 | 2,067 | 3,923 |
Settlement loss | 7,385 | 0 | 7,385 | 0 |
Net periodic benefit cost | 8,586 | 1,640 | 11,222 | 5,838 |
Other Postretirement Obligations [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 11 | 11 | 40 | 43 |
Interest cost | 305 | 274 | 1,152 | 1,076 |
Amortization of prior service credit | (11) | (16) | (33) | (66) |
Actuarial losses | 29 | 107 | 260 | 359 |
Settlement loss | 0 | 0 | 0 | 0 |
Net periodic benefit cost | $ 334 | $ 376 | $ 1,419 | $ 1,412 |
Comprehensive Income and Accu45
Comprehensive Income and Accumulated Other Comprehensive Income (Loss) - Total Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2016 | Sep. 27, 2015 | Oct. 02, 2016 | Sep. 27, 2015 | |
Equity [Abstract] | ||||
Net income | $ 35,565 | $ 14,569 | $ 93,740 | $ 16,524 |
Foreign currency translation loss, net of $0.4 million, $2.1 million, $1.5 million, and $0.0 million tax, respectively | (8,762) | (25,249) | (9,855) | (15,056) |
Adjustments to pension and postretirement liability, net of $3.1 million, $0.5 million, $3.7 million, and $1.6 million tax, respectively | 4,952 | 877 | 5,934 | 2,568 |
Total comprehensive income (loss) | 31,755 | (9,803) | 89,819 | 4,036 |
Less: Comprehensive loss attributable to noncontrolling interest | (91) | 0 | (318) | 0 |
Comprehensive income (loss) attributable to Belden | 31,846 | (9,803) | 90,137 | 4,036 |
Foreign currency translation, tax income (loss) | 400 | 2,100 | 1,500 | 0 |
Adjustments to pension and postretirement liability, tax | $ 3,100 | $ 500 | $ 3,700 | $ 1,600 |
Comprehensive Income and Accu46
Comprehensive Income and Accumulated Other Comprehensive Income (Loss) - Components of Other Comprehensive Income (Loss), Net of Tax (Detail) $ in Thousands | 9 Months Ended |
Oct. 02, 2016USD ($) | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Accumulated other comprehensive income (loss), Beginning balance | $ (58,987) |
Other comprehensive loss, net of tax | (3,921) |
Accumulated other comprehensive income (loss), Ending balance | (62,876) |
Foreign Currency Translation Component [Member] | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Accumulated other comprehensive income (loss), Beginning balance | (23,411) |
Other comprehensive loss attributable to Belden before reclassifications | (9,823) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 |
Other comprehensive loss, net of tax | (9,823) |
Accumulated other comprehensive income (loss), Ending balance | (33,234) |
Pension and Other Postretirement Benefit Plans [Member] | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Accumulated other comprehensive income (loss), Beginning balance | (35,576) |
Other comprehensive loss attributable to Belden before reclassifications | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) | 5,934 |
Other comprehensive loss, net of tax | 5,934 |
Accumulated other comprehensive income (loss), Ending balance | (29,642) |
Accumulated Other Comprehensive Income (Loss) [Member] | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Accumulated other comprehensive income (loss), Beginning balance | (58,987) |
Other comprehensive loss attributable to Belden before reclassifications | (9,823) |
Amounts reclassified from accumulated other comprehensive income (loss) | 5,934 |
Other comprehensive loss, net of tax | (3,889) |
Accumulated other comprehensive income (loss), Ending balance | $ (62,876) |
Comprehensive Income and Accu47
Comprehensive Income and Accumulated Other Comprehensive Income (Loss) - Summary of Effects of Reclassifications from Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2016 | Sep. 27, 2015 | Oct. 02, 2016 | Sep. 27, 2015 | |
Amortization of pension and other postretirement benefit plan items: | ||||
Net of tax | $ 4,952 | $ 877 | $ 5,934 | $ 2,568 |
Pension and Other Postretirement Benefit Plans [Member] | Reclassified from Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Amortization of pension and other postretirement benefit plan items: | ||||
Settlement loss | 7,385 | |||
Actuarial losses | 2,327 | |||
Prior service credit | (62) | |||
Total before tax | 9,650 | |||
Tax benefit | (3,716) | |||
Net of tax | $ 5,934 |
Preferred Stock (Details)
Preferred Stock (Details) $ / shares in Units, $ in Thousands | Jul. 15, 2019shares | Jul. 26, 2016USD ($)$ / sharesshares | Oct. 02, 2016USD ($) | Sep. 27, 2015USD ($) | Oct. 02, 2016USD ($) | Sep. 27, 2015USD ($) |
Class of Stock [Line Items] | ||||||
Preferred stock dividends | $ | $ 6,695 | $ 0 | $ 6,695 | $ 0 | ||
Depository Shares [Member] | ||||||
Class of Stock [Line Items] | ||||||
Depository shares issued | 5,200,000 | |||||
Interest in preferred stock per depository share | 0.01 | |||||
Six Point Seven Five Percentage Series B Mandatory Convertible Preferred Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Percentage of issued shares | 6.75% | |||||
Offering price per share | $ / shares | $ 100 | |||||
Proceeds from offering, net | $ | $ 501,000 | |||||
Scenario, Forecast [Member] | Minimum [Member] | Six Point Seven Five Percentage Series B Mandatory Convertible Preferred Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock converted in to common stock | 120.46 | |||||
Number of common stock issued upon conversion | 6,200,000 | |||||
Scenario, Forecast [Member] | Maximum [Member] | Six Point Seven Five Percentage Series B Mandatory Convertible Preferred Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock converted in to common stock | 132.50 | |||||
Number of common stock issued upon conversion | 6,900,000 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) € in Millions, $ in Millions | Nov. 03, 2016USD ($) | Oct. 10, 2016USD ($) | Oct. 10, 2016EUR (€) | Jul. 23, 2015USD ($) | Jul. 05, 2011patent | Dec. 31, 2016USD ($) |
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Loss on extinguishment of debt | $ 2.2 | |||||
4.125% Senior Subordinated Notes Due 2026 [Member] | Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Proceeds from issuance of senior subordinated notes | $ 222.2 | € 200 | ||||
Senior subordinated notes interest rate | 4.125% | 4.125% | ||||
Corning [Member] | PPC Broadband, Inc. [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Gain contingency, number of patents allegedly infringed upon | patent | 2 | |||||
Litigation settlement, amount | $ 23.9 | |||||
Corning [Member] | PPC Broadband, Inc. [Member] | Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Litigation settlement, amount | $ 47.7 |