Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 02, 2017 | Aug. 03, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 2, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
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 | 42,299,344 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 02, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 670,360 | $ 848,116 |
Receivables, net | 419,591 | 388,059 |
Inventories, net | 252,534 | 190,408 |
Other current assets | 43,623 | 29,176 |
Total assets held for sale | 30,743 | 23,193 |
Total current assets | 1,416,851 | 1,478,952 |
Property, plant and equipment, less accumulated depreciation | 319,371 | 309,291 |
Goodwill | 1,453,993 | 1,385,995 |
Intangible assets, less accumulated amortization | 600,417 | 560,082 |
Deferred income taxes | 35,735 | 33,706 |
Other long-lived assets | 36,303 | 38,777 |
Total assets | 3,862,670 | 3,806,803 |
Current liabilities: | ||
Accounts payable | 280,796 | 258,203 |
Accrued liabilities | 255,092 | 310,340 |
Liabilities held for sale | 1,803 | 1,736 |
Total current liabilities | 537,691 | 570,279 |
Long-term debt | 1,679,382 | 1,620,161 |
Postretirement benefits | 109,599 | 104,050 |
Deferred income taxes | 18,341 | 14,276 |
Other long-term liabilities | 38,554 | 36,720 |
Stockholders’ equity: | ||
Preferred stock | 1 | 1 |
Common stock | 503 | 503 |
Additional paid-in capital | 1,119,763 | 1,116,090 |
Retained earnings | 823,761 | 783,812 |
Accumulated other comprehensive loss | (65,188) | (39,067) |
Treasury stock | (400,501) | (401,026) |
Total Belden stockholders’ equity | 1,478,339 | 1,460,313 |
Noncontrolling interest | 764 | 1,004 |
Total stockholders’ equity | 1,479,103 | 1,461,317 |
Total liabilities and stockholders' equity | $ 3,862,670 | $ 3,806,803 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | |
Income Statement [Abstract] | ||||
Revenues | $ 610,633 | $ 601,631 | $ 1,162,014 | $ 1,143,128 |
Cost of sales | (368,124) | (353,418) | (697,391) | (669,880) |
Gross profit | 242,509 | 248,213 | 464,623 | 473,248 |
Selling, general and administrative expenses | (117,771) | (123,057) | (230,357) | (245,463) |
Research and development | (35,144) | (36,652) | (69,666) | (72,785) |
Amortization of intangibles | (27,113) | (26,263) | (50,782) | (51,795) |
Operating income | 62,481 | 62,241 | 113,818 | 103,205 |
Interest expense, net | (23,533) | (24,049) | (47,039) | (48,445) |
Loss on debt extinguishment | (847) | 0 | (847) | 0 |
Income before taxes | 38,101 | 38,192 | 65,932 | 54,760 |
Income tax benefit (expense) | (2,210) | 3,741 | (4,460) | 3,531 |
Net income | 35,891 | 41,933 | 61,472 | 58,291 |
Less: Net loss attributable to noncontrolling interest | (86) | (99) | (192) | (198) |
Net income attributable to Belden | 35,977 | 42,032 | 61,664 | 58,489 |
Less: Preferred stock dividends | 8,733 | 0 | 17,466 | 0 |
Net income attributable to Belden common stockholders | $ 27,244 | $ 42,032 | $ 44,198 | $ 58,489 |
Weighted average number of common shares and equivalents: | ||||
Basic (in shares) | 42,283 | 42,085 | 42,249 | 42,046 |
Diluted (in shares) | 42,832 | 42,533 | 42,753 | 42,459 |
Basic income per share attributable to Belden common stockholders (in usd per share) | $ 0.64 | $ 1 | $ 1.05 | $ 1.39 |
Diluted income per share attributable to Belden common stockholders (in usd per share) | $ 0.64 | $ 0.99 | $ 1.03 | $ 1.38 |
Comprehensive income attributable to Belden | $ 19,267 | $ 43,668 | $ 35,543 | $ 58,407 |
Common stock dividends declared per share (in usd per share) | $ 0.05 | $ 0.05 | $ 0.10 | $ 0.1 |
Condensed Consolidated Cash Flo
Condensed Consolidated Cash Flow Statements (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 02, 2017 | Jul. 03, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 61,472 | $ 58,291 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 73,693 | 75,445 |
Share-based compensation | 8,924 | 8,587 |
Loss on debt extinguishment | 847 | 0 |
Changes in operating assets and liabilities, net of the effects of currency exchange rate changes and acquired businesses: | ||
Receivables | 17,982 | 3,750 |
Inventories | 42,052 | (368) |
Accounts payable | 14,748 | (20,730) |
Accrued liabilities | (55,094) | (39,356) |
Accrued taxes | (12,523) | (17,875) |
Other assets | 6,573 | (2,457) |
Other liabilities | 9,321 | (2,867) |
Net cash provided by operating activities | 34,781 | 60,570 |
Cash flows from investing activities: | ||
Cash used to acquire businesses, net of cash acquired | (166,945) | (17,848) |
Capital expenditures | (22,197) | (25,124) |
Proceeds from disposal of tangible assets | 0 | 41 |
Net cash used for investing activities | (189,142) | (42,931) |
Cash flows from financing activities: | ||
Cash dividends paid | (21,688) | (4,204) |
Payments under borrowing arrangements | (5,221) | (51,250) |
Withholding tax payments for share-based payment awards, net of proceeds from the exercise of stock options | (4,726) | (3,598) |
Debt issuance costs paid | (2,044) | 0 |
Net cash used for financing activities | (33,679) | (59,052) |
Effect of foreign currency exchange rate changes on cash and cash equivalents | 10,284 | 434 |
Decrease in cash and cash equivalents | (177,756) | (40,979) |
Cash and cash equivalents, beginning of period | 848,116 | 216,751 |
Cash and cash equivalents, end of period | $ 670,360 | $ 175,772 |
Condensed Consolidated Stockhol
Condensed Consolidated Stockholders' Equity Statement (Unaudited) - 6 months ended Jul. 02, 2017 - USD ($) shares in Thousands, $ in Thousands | Total | Mandatory Convertible Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interest |
Beginning balance, shares at Dec. 31, 2016 | 52 | 50,335 | ||||||
Beginning balance at Dec. 31, 2016 | $ 1,461,317 | $ 1 | $ 503 | $ 1,116,090 | $ 783,812 | $ (401,026) | $ (39,067) | $ 1,004 |
Beginning balance, Treasury shares at Dec. 31, 2016 | (8,155) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 61,472 | 61,664 | (192) | |||||
Foreign currency translation, net of $0.4 million tax | (26,943) | (26,895) | (48) | |||||
Adjustments to pension and postretirement liability, net of $0.5 million tax | 774 | 774 | ||||||
Other comprehensive loss, net of tax | (26,169) | |||||||
Exercise of stock options, net of tax withholding forfeitures | (1,042) | (1,034) | $ (8) | |||||
Exercise of stock options, net of tax withholding forfeitures (in shares) | 22 | |||||||
Conversion of restricted stock units into common stock, net of tax withholding forfeitures | (3,684) | (4,217) | $ 533 | |||||
Conversion of restricted stock units into common stock, net of tax withholding forfeitures (in shares) | 95 | |||||||
Share-based compensation | 8,924 | 8,924 | ||||||
Preferred stock dividends | (17,466) | (17,466) | ||||||
Common stock dividends ($0.10 per share) | (4,249) | (4,249) | ||||||
Ending balance, shares at Jul. 02, 2017 | 52 | 50,335 | ||||||
Ending balance at Jul. 02, 2017 | $ 1,479,103 | $ 1 | $ 503 | $ 1,119,763 | $ 823,761 | $ (400,501) | $ (65,188) | $ 764 |
Ending balance, Treasury shares at Jul. 02, 2017 | (8,038) |
Condensed Consolidated Stockho6
Condensed Consolidated Stockholders' Equity Statement (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | |
Statement of Stockholders' Equity [Abstract] | ||||
Foreign currency translation, tax income (loss) | $ 0.5 | $ 0.3 | $ 0.4 | $ 1.9 |
Adjustments to pension and postretirement liability, tax expense | $ 0.3 | $ 0.3 | $ 0.5 | $ 0.6 |
Dividends declared per share (in usd per share) | $ 0.05 | $ 0.05 | $ 0.10 | $ 0.1 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jul. 02, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying Condensed Consolidated Financial Statements include Belden Inc. and all of its subsidiaries (the Company, us, we, or our). We eliminate all significant affiliate accounts and transactions in consolidation. The accompanying Condensed Consolidated Financial Statements presented as of any date other than December 31, 2016 : • 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 2016 Annual Report on Form 10-K. Business Description We are a signal transmission solutions provider built around four global business platforms – Broadcast Solutions, Enterprise Solutions, Industrial Solutions, and Network Solutions. Our comprehensive portfolio of signal transmission solutions provides industry leading secure and reliable transmission of data, sound, and video for mission critical applications. Reporting Periods Our fiscal year and fiscal fourth quarter both end on December 31. Our fiscal first quarter ends on the Sunday falling closest to 91 days after December 31, which was April 2, 2017, the 92nd day of our fiscal year 2017. Our fiscal second and third quarters each have 91 days. The six months ended July 2, 2017 and July 3, 2016 included 183 and 185 days, respectively. Reclassifications We have made certain reclassifications to the 2016 Condensed Consolidated Financial Statements with no impact to reported net income in order to conform to the 2017 presentation. Operating Segments To leverage the Company's strengths in networking, IoT, and cybersecurity technologies, effective January 1, 2017, we formed a new segment called Network Solutions, which represents the combination of the prior Industrial IT Solutions and Network Security Solutions segments. The formation is a natural evolution in our organic and inorganic strategies for a range of industrial and non-industrial applications. We have revised the prior period segment information to conform to the change in the composition of these reportable segments. In connection with this change, we re-evaluated the useful life of the Tripwire trademark and concluded that an indefinite life is no longer appropriate. We have estimated a useful life of 10 years and will re-evaluate this estimate if and when our expected use of the Tripwire trademark changes. We began amortizing the Tripwire trademark in the first quarter of 2017, which resulted in amortization expense of $0.8 million and $1.6 million for the three and six months ended July 2, 2017, respectively. 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 six months ended July 2, 2017 and July 3, 2016 , we utilized Level 1 inputs to determine the fair value of cash equivalents, and we utilized Level 2 and Level 3 inputs to determine the fair value of net assets acquired in business combinations (see Note 2). We did not have any transfers between Level 1 and Level 2 fair value measurements during the six months ended July 2, 2017 and July 3, 2016 . Cash and Cash Equivalents We classify cash on hand and deposits in banks, including commercial paper, money market accounts, and other investments with an original maturity of three months or less, that we hold from time to time, as cash and cash equivalents. We periodically have cash equivalents consisting of short-term money market funds and other investments. The primary objective of our investment activities is to preserve our capital for the purpose of funding operations. We do not enter into investments for trading or speculative purposes. As of July 2, 2017 , we did not have any significant cash equivalents. Contingent Liabilities We have established liabilities for environmental and legal contingencies that are probable of occurrence and reasonably estimable, the amounts of which are currently not material. We accrue environmental remediation costs based on estimates of known environmental remediation exposures developed in consultation with our environmental consultants and legal counsel. We are, from time to time, subject to routine litigation incidental to our business. These lawsuits primarily involve claims for damages arising out of the use of our products, allegations of patent or trademark infringement, and litigation and administrative proceedings involving employment matters and commercial disputes. Based on facts currently available, we believe the disposition of the claims that are pending or asserted will not have a materially adverse effect on our financial position, results of operations, or cash flow. As of July 2, 2017 , we were party to standby letters of credit, surety bonds, and bank guaranties totaling $8.1 million , $2.4 million , and $1.8 million , respectively. Contingent Gain On July 5, 2011, our wholly-owned subsidiary, PPC Broadband, Inc. (PPC), filed an action for patent infringement against Corning Optical Communications RF LLC (Corning). The complaint alleged that Corning infringed two of PPC’s patents. In July 2015, a jury found that Corning willfully infringed both patents. In November 2016, following a series of post-trial motions, the trial judge issued rulings for a total judgment in our favor of approximately $61.3 million . In December 2016, Corning appealed the case to the U.S. Court of Appeals for the Federal Circuit, and that appeal remains pending. We have not recorded any amounts in our consolidated financial statements related to this matter due to the pendency of the appeal. Revenue Recognition We recognize revenue when all of the following circumstances are satisfied: (1) persuasive evidence of an arrangement exists, (2) price is fixed or determinable, (3) collectability is reasonably assured, and (4) delivery has occurred. Delivery occurs in the period in which the customer takes title and assumes the risks and rewards of ownership of the products specified in the customer’s purchase order or sales agreement. At times, we enter into arrangements that involve the delivery of multiple elements. For these arrangements, when the elements can be separated, the revenue is allocated to each deliverable based on that element’s relative selling price and recognized based on the period of delivery for each element. Generally, we determine relative selling price using vendor specific objective evidence (VSOE) of fair value. We record revenue net of estimated rebates, price allowances, invoicing adjustments, and product returns. We record revisions to these estimates in the period in which the facts that give rise to each revision become known. Taxes collected from customers and remitted to governmental authorities are not included in our revenues. We have certain products subject to the accounting guidance on software revenue recognition. For such products, software license revenue is recognized when persuasive evidence of an arrangement exists, delivery of the product has occurred, the fee is fixed or determinable, collection is probable and VSOE of the fair value of undelivered elements exists. As substantially all of the software licenses are sold in multiple-element arrangements that include either support and maintenance or both support and maintenance and professional services, we use the residual method to determine the amount of software license revenue to be recognized. Under the residual method, consideration is allocated to undelivered elements based upon VSOE of the fair value of those elements, with the residual of the arrangement fee allocated to and recognized as software license revenue. We have established VSOE of the fair value of support and maintenance, subscription-based software licenses, and professional services. Software license revenue is generally recognized upon delivery of the software if all revenue recognition criteria are met. Revenue allocated to support services under our support and maintenance contracts is typically paid in advance and recognized ratably over the term of the service. Revenue allocated to subscription-based software and remote ongoing operational services is also paid in advance and recognized ratably over the term of the service. Revenue allocated to professional services, including remote implementation services, is recognized as the services are performed. Subsequent Events We have evaluated subsequent events after the balance sheet date through the financial statement issuance date for appropriate accounting and disclosure. See Note 16. Pending Adoption of Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which will replace most existing revenue recognition guidance in U.S. GAAP. The core principle of the ASU is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. ASU 2014-09 requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. We plan to adopt ASU 2014-09 on January 1, 2018, using the modified retrospective method of adoption. Our overall, initial assessment indicates that the impact of adopting ASU 2014-09 on our consolidated financial statements will not be material. We do not expect significant changes in the timing or method of revenue recognition for any of our material revenue streams. We are currently completing detailed contract reviews to determine if any adjustments are necessary to our existing accounting policies and to support our overall, initial assessment. We believe the most significant impact of adopting ASU 2014-09 will be on our disclosures regarding revenue recognition. We will continue our evaluation of ASU 2014-09, including new or emerging interpretations of the standard, through the date of adoption. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (ASU 2016-02), a leasing standard for both lessees and lessors. Under its core principle, a lessee will recognize lease assets and liabilities on the balance sheet for all arrangements with terms longer than 12 months. Lessor accounting remains largely consistent with existing U.S. generally accepted accounting principles. The new standard will be effective for us beginning January 1, 2019. Early adoption is permitted. The standard requires the use of a modified retrospective transition method. We are evaluating the effect that ASU 2016-02 will have on our consolidated financial statements and related disclosures. In October 2016, the FASB issued Accounting Standards Update No. 2016-16, Intra-Entity Transfers of Assets Other Than Inventory (ASU 2016-16), which requires recognition of the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Consequently, the standard eliminates the exception to the recognition of current and deferred income taxes for an intra-entity asset transfer other than for inventory until the asset has been sold to an outside party. The new standard will be effective for us January 1, 2018. Early adoption is permitted. We are evaluating the effect that ASU 2016-16 will have on our consolidated financial statements and related disclosures. In March 2017, the FASB issued Accounting Standards Update No. 2017-07, Compensation - Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (ASU 2017-07), which requires an entity to report the service cost component in the same line item or items as other compensation costs arising from the service rendered by their employees during the period. The other components of net benefit cost are required to be presented in the Statement of Operations separately from the service cost component after Operating Income. Additionally, only the service cost component will be eligible for capitalization, when applicable. The standard requires the amendments to be applied retrospectively for the presentation of the service cost component and the other cost components of net periodic pension cost and net periodic OPEB cost in the Statement of Operations and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension and OPEB costs. The new standard will be effective for us January 1, 2018. Early adoption is permitted. We are evaluating the effect that ASU 2017-07 will have on our consolidated financial statements and related disclosures. |
Acquisitions
Acquisitions | 6 Months Ended |
Jul. 02, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Thinklogical Holdings, LLC We acquired 100% of the outstanding ownership interest in Thinklogical Holdings, LLC (Thinklogical) on May 31, 2017 for cash of $171.3 million . Thinklogical designs, manufactures, and markets high-bandwidth fiber matrix switches, video, and keyboard/video/mouse extender solutions, camera extenders, and console management solutions. Thinklogical is headquartered in Connecticut. The results of Thinklogical have been included in our Consolidated Financial Statements from May 31, 2017, and are reported within the Broadcast Solutions segment. The following table summarizes the estimated fair value of the assets acquired and the liabilities assumed as of May 31, 2017 (in thousands): Cash $ 5,327 Receivables 4,355 Inventory 17,291 Prepaid and other current assets 405 Property, plant, and equipment 4,289 Intangible assets 86,250 Goodwill 57,513 Total assets acquired $ 175,430 Accounts payable $ 1,231 Accrued liabilities 1,353 Deferred revenue 1,574 Total liabilities assumed $ 4,158 Net assets $ 171,272 A single estimate of fair value results from a complex series of judgments about future events and uncertainties and relies heavily on estimates and assumptions. The judgments we have used in estimating the fair values assigned to each class of acquired assets and assumed liabilities could materially affect the results of our operations. The fair value of acquired receivables is $4.4 million , which is equivalent to its gross contractual amount. For purposes of the above allocation, we based our estimate of the fair value for the acquired inventory, intangible assets, and deferred revenue on a preliminary valuation study performed by a third party valuation firm. We have estimated a fair value adjustment for inventories based on the estimated selling price of the work-in-process and finished goods acquired at the closing date less the sum of the costs to complete the work-in-process, the costs of disposal, and a reasonable profit allowance for our post acquisition selling efforts. We used various valuation methods including discounted cash flows to estimate the fair value of the identifiable intangible assets and deferred revenue (Level 3 valuation). Goodwill and other intangible assets reflected above were determined to meet the criterion for recognition apart from tangible assets acquired and liabilities assumed. The goodwill is primarily attributable to expected synergies and the assembled workforce. The expected synergies for the Thinklogical acquisition primarily consist of utilizing Belden's fiber and connectivity with Thinklogical's connections between matrix switch, control systems, transmitters and source to expand our product portfolio across our segments to both existing and new customers. Our tax basis in the acquired goodwill is $57.5 million . The goodwill balance we recorded is deductible for tax purposes over a period of 15 years up to the amount of the tax basis. The intangible assets related to the acquisition consisted of the following: Fair Value Amortization Period (In thousands) (In years) Intangible assets subject to amortization: Developed technologies $ 60,000 5.0 Customer relationships 20,000 15.0 Trademarks 3,750 10.0 Sales backlog 2,500 0.3 Total intangible assets subject to amortization $ 86,250 Intangible assets not subject to amortization: Goodwill $ 57,513 n/a Total intangible assets not subject to amortization $ 57,513 Total intangible assets $ 143,763 Weighted average amortization period 7.4 The amortizable intangible assets reflected in the table above were determined by us to have finite lives. The useful life for the customer relationship intangible asset was based on our forecasts of customer turnover. The useful life for the trademarks was based on the period of time we expect to continue to go to market using the trademarks. The useful life for the developed technology intangible asset was based on the estimated time that the technology provides us with a competitive advantage and thus approximates the period of consumption of the intangible asset. The useful life of the backlog intangible asset was based on our estimate of when the ordered items would ship. Our consolidated revenues and consolidated income before taxes for the three and six months ended July 2, 2017 included $10.2 million of revenues and $1.1 million of income before taxes from Thinklogical. The following table illustrates the unaudited pro forma effect on operating results as if the Thinklogical acquisition had been completed as of January 1, 2016. Three Months Ended Six Months Ended July 2, 2017 July 3, 2016 July 2, 2017 July 3, 2016 (In thousands, except per share data) (Unaudited) Revenues $ 615,109 $ 608,517 $ 1,170,745 $ 1,155,428 Net income attributable to Belden common stockholders 28,250 38,194 41,130 47,520 Diluted income per share attributable to Belden common stockholders $ 0.66 $ 0.90 $ 0.96 $ 1.12 The above unaudited pro forma financial information is presented for informational purposes only and does not purport to represent what our results of operations would have been had we completed the acquisitions on the date assumed, nor is it necessarily indicative of the results that may be expected in future periods. Pro forma adjustments exclude cost savings from any synergies resulting from the acquisition. M2FX We acquired 100% of the shares of M2FX Limited (M2FX) on January 7, 2016 for a purchase price of $19.0 million . M2FX is a manufacturer of fiber optic cable and fiber protective solutions for broadband access and telecommunications networks. M2FX is located in the United Kingdom. The results of M2FX have been included in our Consolidated Financial Statements from January 7, 2016, and are reported within the Broadcast Solutions segment. The M2FX acquisition was not material to our financial position or results of operations. |
Assets Held for Sale
Assets Held for Sale | 6 Months Ended |
Jul. 02, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets Held for Sale | Assets Held for Sale We classify assets and liabilities as held for sale (disposal group) when management, having the authority to approve the action, commits to a plan to sell the disposal group, the sale is probable within one year, and the disposal group is available for immediate sale in its present condition. We also consider whether an active program to locate a buyer has been initiated, whether the disposal group is marketed actively for sale at a price that is reasonable in relation to its current fair value, and whether actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. When we classify a disposal group as held for sale, we test for impairment. An impairment charge is recognized when the carrying value of the disposal group exceeds the estimated fair value, less costs to sell. We also cease depreciation and amortization for assets classified as held for sale. During the fourth quarter of 2016, we committed to a plan to sell our MCS business and Hirschmann JV and determined that we met all of the criteria to classify the assets and liabilities of these businesses as held for sale. The MCS business is part of the Industrial Solutions segment and the Hirschmann JV is an equity method investment that is not included in an operating segment. The MCS business operates in Germany and the United States, and the Hirschmann JV is an equity method investment located in China. During the fourth quarter of 2016, we reached an agreement in principal to sell this disposal group for a total sales price of $39 million . The carrying value of the disposal group exceeded the fair value less costs to sell, which we determined based on the expected sales price, by $23.9 million . Therefore, we recognized an impairment charge equal to this amount in the fourth quarter of 2016. During the first quarter of 2017, we signed a definitive sales agreement for a purchase price of $39 million , and we expect the sale to be completed in 2017. The following table provides the major classes of assets and liabilities classified as held for sale as of July 2, 2017 and December 31, 2016. In addition, the disposal group had $8.9 million and $15.7 million of accumulated other comprehensive losses at July 2, 2017 and December 31, 2016, respectively. July 2, 2017 December 31, 2016 (In thousands) Receivables, net $ 4,881 $ 4,551 Inventories, net 3,902 2,848 Other current assets 1,190 1,131 Property, plant, and equipment 2,195 1,946 Intangible assets 4,534 4,405 Goodwill 5,477 5,477 Other long-lived assets 32,495 26,766 Total assets of disposal group 54,674 47,124 Impairment of assets held for sale (23,931 ) (23,931 ) Total assets held for sale $ 30,743 $ 23,193 Accrued liabilities $ 1,409 $ 1,288 Postretirement benefits 394 448 Total liabilities held for sale $ 1,803 $ 1,736 |
Operating Segments
Operating Segments | 6 Months Ended |
Jul. 02, 2017 | |
Segment Reporting [Abstract] | |
Operating Segments | Operating Segments We are organized around four global business platforms: Broadcast Solutions, Enterprise Solutions, Industrial Solutions, and Network Solutions. Each of the global business platforms represents a reportable segment. To leverage the Company's strengths in networking, IoT, and cybersecurity technologies, effective January 1, 2017, we formed a new segment called Network Solutions, which represents the combination of the prior Industrial IT Solutions and Network Security Solutions segments. The formation of this new segment is a natural evolution in our organic and inorganic strategies for a range of industrial and non-industrial applications. We have revised the prior period segment information to conform to the change in the composition of these reportable segments. This change had no impact to our reporting units for purposes of goodwill impairment testing. Beginning in 2017, sales of certain audio-visual cable that had previously been reported in our Broadcast Solutions segment are now reported in our Enterprise Solutions segment. As the annual revenues associated with this product line are not material, we have not revised the prior period segment information. The key measures of segment profit or loss reviewed by our chief operating decision maker are Segment Revenues and Segment EBITDA. Segment Revenues represent non-affiliate revenues and include revenues that would have otherwise been recorded by acquired businesses as independent entities but were not recognized in our Consolidated Statements of Operations due to the effects of purchase accounting and the associated write-down of acquired deferred revenue to fair value. Segment EBITDA excludes certain items, including depreciation expense; amortization of intangibles; asset impairment; severance, restructuring, and acquisition integration costs; purchase accounting effects related to acquisitions, such as the adjustment of acquired inventory and deferred revenue to fair value; and other costs. We allocate corporate expenses to the segments for purposes of measuring Segment EBITDA. Corporate expenses are allocated on the basis of each segment’s relative EBITDA prior to the allocation. Our measure of segment assets does not include cash, goodwill, intangible assets, deferred tax assets, or corporate assets. All goodwill is allocated to reporting units of our segments for purposes of impairment testing. Broadcast Solutions Enterprise Solutions Industrial Solutions Network Solutions Total Segments (In thousands) As of and for the three months ended July 2, 2017 Segment revenues $ 188,071 $ 160,733 $ 159,255 $ 102,574 $ 610,633 Affiliate revenues 94 1,545 275 32 1,946 Segment EBITDA 29,610 26,801 31,036 22,780 110,227 Depreciation expense 4,058 2,695 3,168 1,607 11,528 Amortization expense 13,453 429 640 12,591 27,113 Severance, restructuring, and acquisition integration costs 970 8,141 346 103 9,560 Purchase accounting effects of acquisitions 1,167 — — — 1,167 Segment assets 359,160 275,770 282,068 105,070 1,022,068 As of and for the three months ended July 3, 2016 Segment revenues $ 193,521 $ 160,401 $ 147,808 $ 101,651 $ 603,381 Affiliate revenues 173 1,328 214 4 1,719 Segment EBITDA 29,505 29,575 27,064 22,191 108,335 Depreciation expense 4,061 3,429 2,709 1,788 11,987 Amortization expense 13,420 432 601 11,810 26,263 Severance, restructuring, and acquisition integration costs 1,319 1,207 2,371 972 5,869 Deferred gross profit adjustments 494 — — 1,256 1,750 Segment assets 329,250 253,424 255,250 107,176 945,100 As of and for the six months ended July 2, 2017 Segment revenues $ 356,667 $ 306,415 $ 305,436 $ 193,496 $ 1,162,014 Affiliate revenues 195 4,103 662 92 5,052 Segment EBITDA 55,010 50,901 56,769 40,657 203,337 Depreciation expense 8,007 5,294 6,374 3,236 22,911 Amortization expense 23,468 853 1,282 25,179 50,782 Severance, restructuring, and acquisition integration costs 1,378 13,014 1,467 301 16,160 Purchase accounting effects of acquisitions 1,167 — — — 1,167 Segment assets 359,160 275,770 282,068 105,070 1,022,068 As of and for the six months ended July 3, 2016 Segment revenues $ 364,793 $ 296,293 $ 288,899 $ 197,196 $ 1,147,181 Affiliate revenues 597 3,027 396 32 4,052 Segment EBITDA 52,772 53,311 50,051 42,267 198,401 Depreciation expense 8,023 6,818 5,427 3,382 23,650 Amortization expense 26,351 861 1,192 23,391 51,795 Severance, restructuring, and acquisition integration costs 5,697 1,707 3,236 3,637 14,277 Purchase accounting effects of acquisitions 195 — — — 195 Deferred gross profit adjustments 1,108 — — 2,945 4,053 Segment assets 329,250 253,424 255,250 107,176 945,100 The following table is a reconciliation of the total of the reportable segments’ Revenues and EBITDA to consolidated revenues and consolidated income before taxes, respectively. Three Months Ended Six Months Ended July 2, 2017 July 3, 2016 July 2, 2017 July 3, 2016 (In thousands) Total Segment Revenues $ 610,633 $ 603,381 $ 1,162,014 $ 1,147,181 Deferred revenue adjustments (1) — (1,750 ) — (4,053 ) Consolidated Revenues $ 610,633 $ 601,631 $ 1,162,014 $ 1,143,128 Total Segment EBITDA $ 110,227 $ 108,335 $ 203,337 $ 198,401 Amortization of intangibles (27,113 ) (26,263 ) (50,782 ) (51,795 ) Depreciation expense (11,528 ) (11,987 ) (22,911 ) (23,650 ) Severance, restructuring, and acquisition integration costs (2) (9,560 ) (5,869 ) (16,160 ) (14,277 ) Purchase accounting effects related to acquisitions (3) (1,167 ) — (1,167 ) (195 ) Deferred gross profit adjustments (1) — (1,750 ) — (4,053 ) Income from equity method investment 2,277 661 3,284 491 Eliminations (655 ) (886 ) (1,783 ) (1,717 ) Consolidated operating income 62,481 62,241 113,818 103,205 Interest expense, net (23,533 ) (24,049 ) (47,039 ) (48,445 ) Loss on debt extinguishment (847 ) — (847 ) — Consolidated income before taxes $ 38,101 $ 38,192 $ 65,932 $ 54,760 (1) For the three and six months ended July 3, 2016 , our segment results include revenues that would have been recorded by acquired businesses had they remained as independent entities. Our consolidated results do not include these revenues due to the purchase accounting effect of recording deferred revenue at fair value. (2) See Note 8, Severance, Restructuring, and Acquisition Integration Activities, for details . (3) For the three and six months ended July 2, 2017 and July 3, 2016 , we recognized cost of sales for the adjustment of acquired inventory to fair value related to the Thinklogical and M2FX acquisitions, respectively. |
Income per Share
Income per Share | 6 Months Ended |
Jul. 02, 2017 | |
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 Six Months Ended July 2, 2017 July 3, 2016 July 2, 2017 July 3, 2016 (In Thousands) Numerator: Net income $ 35,891 $ 41,933 $ 61,472 $ 58,291 Less: Net loss attributable to noncontrolling interest (86 ) (99 ) (192 ) (198 ) Less: Preferred stock dividends 8,733 — 17,466 — Net income attributable to Belden common stockholders $ 27,244 $ 42,032 $ 44,198 $ 58,489 Denominator: Weighted average shares outstanding, basic 42,283 42,085 42,249 42,046 Effect of dilutive common stock equivalents 549 448 504 413 Weighted average shares outstanding, diluted 42,832 42,533 42,753 42,459 For both the three and six months ended July 2, 2017 , diluted weighted average shares outstanding do not include outstanding equity awards of 0.4 million because to do so would have been anti-dilutive. In addition, for both the three and six months ended July 2, 2017 , diluted weighted average shares outstanding do not include outstanding equity awards of 0.2 million because the related performance conditions have not been satisfied. Furthermore, for both the three and six months ended July 2, 2017 , diluted weighted average shares outstanding do not include the impact of preferred shares that are convertible into 6.9 million common shares because deducting the preferred stock dividends from net income was more dilutive. For the three and six months ended July 3, 2016 , diluted weighted average shares outstanding do not include outstanding equity awards of 0.7 million and 0.8 million , respectively, because to do so would have been anti-dilutive. In addition, for both the three and six months ended July 3, 2016 , diluted weighted average shares outstanding do not include outstanding equity awards of 0.1 million because the related performance conditions have not been satisfied. 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 | 6 Months Ended |
Jul. 02, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The major classes of inventories were as follows: July 2, 2017 December 31, 2016 (In thousands) Raw materials $ 115,637 $ 90,019 Work-in-process 40,310 25,166 Finished goods 123,993 99,784 Gross inventories 279,940 214,969 Excess and obsolete reserves (27,406 ) (24,561 ) Net inventories $ 252,534 $ 190,408 |
Long-Lived Assets
Long-Lived Assets | 6 Months Ended |
Jul. 02, 2017 | |
Property, Plant and Equipment [Abstract] | |
Long-Lived Assets | Long-Lived Assets Depreciation and Amortization Expense We recognized depreciation expense of $11.5 million and $22.9 million in the three and six months ended July 2, 2017 , respectively. We recognized depreciation expense of $12.0 million and $23.7 million in the three and six months ended July 3, 2016 , respectively. In connection with the segment change discussed in Note 4, we re-evaluated the useful life of the Tripwire trademark and concluded that an indefinite life is no longer appropriate. We have estimated a useful life of 10 years and will re-evaluate this estimate if and when our expected use of the Tripwire trademark changes. We began amortizing the Tripwire trademark in the first quarter of 2017, which resulted in amortization expense of $0.8 million and $1.6 million for the three and six months ended July 2, 2017, respectively. As of July 2, 2017, the net book value of the Tripwire trademark was $29.4 million . We recognized amortization expense related to our intangible assets of $27.1 million and $50.8 million in the three and six months ended July 2, 2017 , respectively. We recognized amortization expense related to our intangible assets of $26.3 million and $51.8 million in the three and six months ended July 3, 2016 , respectively. |
Severance, Restructuring, and A
Severance, Restructuring, and Acquisition Integration Activities | 6 Months Ended |
Jul. 02, 2017 | |
Restructuring and Related Activities [Abstract] | |
Severance, Restructuring, and Acquisition Integration Activities | Severance, Restructuring, and Acquisition Integration Activities Industrial and Network Solutions Restructuring Program: 2015-2016 Both our Industrial Solutions and Network Solutions segments had been negatively impacted by a decline in sales volume in 2015. At such time, global demand for industrial products had been negatively impacted by the strengthened U.S. dollar and lower energy prices. As a result, our customers reduced their capital spending. In response to these industrial market conditions, we began to execute a restructuring program in the fourth fiscal quarter of 2015 to reduce our cost structure. We recognized $2.4 million and $5.8 million of severance and other restructuring costs for this program during the three and six months ended July 3, 2016, respectively. Most of these costs were incurred by our Network Solutions segment. We did not incur any additional severance and other restructuring costs for this program in 2017. To date, we have incurred a total of $13.0 million in severance and other restructuring costs for this program. We expect the restructuring program to generate approximately $18 million of savings on an annualized basis, and we are substantially realizing such benefits. Industrial Manufacturing Footprint Program: 2016 - 2017 In 2016, we began a program to consolidate our manufacturing footprint. The manufacturing consolidation is expected to be completed in 2018. We recognized $2.0 million and $2.5 million of severance and other restructuring costs for this program during the three and six months ended July 3, 2016, respectively. We recognized $8.2 million and $13.9 million of severance and other restructuring costs for this program during the three and six months ended July 2, 2017 , respectively. The costs were incurred by the Enterprise Solutions and Industrial Solutions segments, as the manufacturing locations involved in the program serve both platforms. To date, we have incurred a total of $31.7 million in severance and other restructuring costs for this program. We expect to incur approximately $11 million of additional severance and other restructuring costs for this program in 2017 and 2018. We expect the program to generate approximately $13 million of savings on an annualized basis, beginning in the second half of 2017. Grass Valley Restructuring Program: 2015-2016 Our Broadcast Solutions segment’s Grass Valley brand was negatively impacted by a decline in global demand of broadcast technology infrastructure products beginning in 2015. Outside of the U.S., demand for these products was impacted by the relative price increase of products due to the strengthened U.S. dollar as well as the impact of weaker economic conditions which resulted in lower capital spending. Within the U.S., demand for these products was impacted by deferred capital spending. We believe broadcast customers deferred their capital spending as they navigated through a number of important industry transitions and a changing media landscape. In response to these broadcast market conditions, we began to execute a restructuring program beginning in the third fiscal quarter of 2015 to reduce our cost structure. We recognized $0.9 million and $5.0 million of severance and other restructuring costs for this program during the three and six months ended July 3, 2016, respectively. We did not incur any additional severance and other restructuring costs for this program in 2017. To date, we have incurred a total of $34.1 million in severance and other restructuring costs for this program. We expect the restructuring program to generate approximately $30 million of savings on an annualized basis, and we are substantially realizing such benefits. The following table summarizes the costs by segment of the various programs described above as well as other immaterial programs and acquisition integration activities: Severance Other Restructuring and Integration Costs Total Costs Three Months Ended July 2, 2017 (In thousands) Broadcast Solutions $ — $ 970 $ 970 Enterprise Solutions 1,275 6,866 8,141 Industrial Solutions 153 193 346 Network Solutions — 103 103 Total $ 1,428 $ 8,132 $ 9,560 Three Months Ended July 3, 2016 Broadcast Solutions $ (109 ) $ 1,428 $ 1,319 Enterprise Solutions 71 1,136 1,207 Industrial Solutions 1,180 1,191 2,371 Network Solutions 309 663 972 Total $ 1,451 $ 4,418 $ 5,869 Six Months Ended July 2, 2017 Broadcast Solutions $ 49 $ 1,329 $ 1,378 Enterprise Solutions 2,127 10,887 13,014 Industrial Solutions 153 1,314 1,467 Network Solutions — 301 301 Total $ 2,329 $ 13,831 $ 16,160 Six Months Ended July 3, 2016 Broadcast Solutions $ (751 ) $ 6,448 $ 5,697 Enterprise Solutions 76 1,631 1,707 Industrial Solutions 1,777 1,459 3,236 Network Solutions 2,631 1,006 3,637 Total $ 3,733 $ 10,544 $ 14,277 Of the total severance, restructuring, and acquisition integration costs recognized in the three months ended July 2, 2017 , $8.2 million and $1.4 million were included in cost of sales and selling, general and administrative expenses, respectively. Of the total severance, restructuring, and acquisition integration costs recognized in the three months ended July 3, 2016 , $1.8 million , $3.6 million , and $0.5 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 six months ended July 2, 2017 , $14.1 million and $2.1 million were included in cost of sales and selling, general and administrative expenses, respectively. Of the total severance, restructuring, and acquisition integration costs recognized in the six months ended July 3, 2016 , $3.9 million , $9.7 million , and $0.7 million were included in cost of sales; selling, general and administrative expenses; and research and development, respectively. The other restructuring and integration costs primarily consisted of integrating manufacturing operations, such as equipment transfers, costs to consolidate operating and support facilities, retention bonuses, relocation, travel, legal, and other costs. The majority of the other cash restructuring and integration costs related to these actions were paid as incurred or are payable within the next 60 days . There were no significant severance accrual balances as of July 2, 2017 or December 31, 2016. |
Long-Term Debt and Other Borrow
Long-Term Debt and Other Borrowing Arrangements | 6 Months Ended |
Jul. 02, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Other Borrowing Arrangements | Long-Term Debt and Other Borrowing Arrangements The carrying values of our long-term debt were as follows: July 2, 2017 December 31, 2016 (In thousands) Revolving credit agreement due 2022 $ — $ — Senior subordinated notes: 4.125% Senior subordinated notes due 2026 227,120 209,081 5.25% Senior subordinated notes due 2024 200,000 200,000 5.50% Senior subordinated notes due 2023 573,722 529,146 5.50% Senior subordinated notes due 2022 700,000 700,000 9.25% Senior subordinated notes due 2019 — 5,221 Total senior subordinated notes 1,700,842 1,643,448 Less unamortized debt issuance costs (21,460 ) (23,287 ) Long-term debt $ 1,679,382 $ 1,620,161 Revolving Credit Agreement due 2022 On May 16, 2017, we entered into an Amended and Restated Credit Agreement (the Revolver) to amend and restate our prior Revolving Credit Agreement. The Revolver provides a $400.0 million multi-currency asset-based revolving credit facility. 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, and the Netherlands. The maturity date of the Revolver has been extended to May 16, 2022. 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 0.25% . In the event we borrow more than 90% of our borrowing base, we are subject to a fixed charge coverage ratio covenant. We recognized a $0.8 million loss on debt extinguishment for unamortized debt issuance costs related to creditors no longer participating in the new Revolver. In connection with executing the Revolver, we paid $2.0 million of fees to creditors and third parties that we will amortize over the remaining term of the Revolver. As of July 2, 2017 , we had no borrowings outstanding on the Revolver, and our available borrowing capacity was $288.7 million . Senior Subordinated Notes We have outstanding €200.0 million aggregate principal amount of 4.125% senior subordinated notes due 2026 (the 2026 Notes). The carrying value of the 2026 Notes as of July 2, 2017 is $227.1 million . The 2026 Notes are guaranteed on a senior subordinated basis by our current and future domestic subsidiaries. The 2026 Notes rank equal in right of payment with our senior subordinated notes due 2024, 2023, and 2022 and with any future subordinated debt, and they are subordinated to all of our senior debt and the senior debt of our subsidiary guarantors, including our Revolver. Interest is payable semiannually on April 15 and October 15 of each year. We have outstanding $200.0 million aggregate principal amount of 5.25% senior subordinated notes due 2024 (the 2024 Notes). The 2024 Notes are guaranteed on a senior subordinated basis by certain of our subsidiaries. The 2024 Notes rank equal in right of payment with our senior subordinated notes due 2026, 2023, and 2022 and with any future subordinated debt, and they are subordinated to all of our senior debt and the senior debt of our subsidiary guarantors, including our Revolver. Interest is payable semiannually on January 15 and July 15 of each year. We have outstanding €500.0 million aggregate principal amount of 5.5% senior subordinated notes due 2023 (the 2023 Notes). The carrying value of the 2023 Notes as of July 2, 2017 is $573.7 million . The 2023 Notes are guaranteed on a senior subordinated basis by certain of our subsidiaries. The notes rank equal in right of payment with our senior subordinated notes due 2026, 2024, and 2022 and with any future subordinated debt, and they are subordinated to all of our senior debt and the senior debt of our subsidiary guarantors, including our Revolver. Interest is payable semiannually on April 15 and October 15 of each year. We have outstanding $700.0 million aggregate principal amount of 5.5% senior subordinated notes due 2022 (the 2022 Notes). The 2022 Notes are guaranteed on a senior subordinated basis by certain of our subsidiaries. The 2022 Notes rank equal in right of payment with our senior subordinated notes due 2026, 2024, and 2023 and with any future subordinated debt, and they are subordinated to all of our senior debt and the senior debt of our subsidiary guarantors, including our Revolver. Interest is payable on March 1 and September 1 of each year. In July 2017, we repurchased a portion of the 2022 Notes outstanding and announced our intention to repurchase the remaining 2022 Notes outstanding. See Note 16. We had outstanding $5.2 million aggregate principal amount of 9.25% senior subordinated notes due 2019 (the 2019 Notes). On June 15, 2017, we repaid all of the 2019 Notes outstanding, plus accrued interest, and recognized an immaterial loss on debt extinguishment related to unamortized debt issuance costs. Fair Value of Long-Term Debt The fair value of our senior subordinated notes as of July 2, 2017 was approximately $1,768.8 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 $1,700.8 million as of July 2, 2017 . |
Net Investment Hedge
Net Investment Hedge | 6 Months Ended |
Jul. 02, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Net Investment Hedge | Net Investment Hedge In 2016, we issued €200.0 million senior subordinated notes due 2026. The notes were issued by Belden Inc., a USD functional currency ledger. We have designated this foreign denominated debt as a net investment hedge on the foreign currency risk of our net investment in our euro foreign operations. The objective of the hedge is to protect the net investment in the foreign operation against adverse changes in exchange rates. The transaction gain or loss is reported in the cumulative translation adjustment section of other comprehensive income. The amount of the cumulative translation adjustment at July 2, 2017 was $5.1 million . |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 02, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We recognized income tax expense of $2.2 million and $4.5 million for the three and six months ended July 2, 2017 , respectively, representing effective tax rates of 5.8% and 6.8% , respectively. The effective tax rates were impacted by the following significant factors: • We recognized an income tax benefit of $4.1 million and $7.5 million in the three and six months ended July 2, 2017 , respectively, as a result of generating tax credits, primarily from the implementation of a foreign tax credit planning strategy. • Foreign tax rate differences reduced our income tax expense by approximately $4.1 million and $7.0 million in the three and six months ended July 2, 2017, respectively. The statutory tax rates associated with our foreign earnings generally are lower than the statutory U.S. tax rate of 35% . This had the greatest impact on our income before taxes that is generated in Germany, Canada, and the Netherlands, which have statutory tax rates of approximately 28% , 26% , and 25% , respectively. • We also recognized an income tax benefit of $4.5 million and $5.3 million in the three and six months ended July 2, 2017, respectively, related to non-taxable currency translation gains. We recognized income tax benefits of $3.7 million and $3.5 million for the three and six months ended July 3, 2016, respectively, representing effective tax rates of (9.8)% and (6.4)% , respectively. The effective tax rates were impacted by the following significant factors: • We recognized an $8.1 million tax benefit in both the three and six months ended July 3, 2016 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 both the three and six months ended July 3, 2016 for the reduction of deferred tax liabilities related to a previously completed acquisition. As part of an implemented tax planning strategy, we successfully 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 $7.0 million tax benefit. • In the six months ended July 3, 2016, we recognized a $3.8 million tax benefit 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 six months ended July 3, 2016, the net operating loss carryforwards are expected to be realizable. The tax benefits described above for the three and six months ended July 3, 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. |
Pension and Other Postretiremen
Pension and Other Postretirement Obligations | 6 Months Ended |
Jul. 02, 2017 | |
Retirement Benefits [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 July 2, 2017 July 3, 2016 July 2, 2017 July 3, 2016 (In thousands) Service cost $ 1,251 $ 1,426 $ 13 $ 16 Interest cost 1,874 2,424 329 480 Expected return on plan assets (2,567 ) (3,216 ) — — Amortization of prior service credit (9 ) (9 ) — (11 ) Actuarial losses 645 709 23 149 Net periodic benefit cost $ 1,194 $ 1,334 $ 365 $ 634 Six Months Ended Service cost $ 2,343 $ 2,835 $ 27 $ 29 Interest cost 3,569 4,819 656 847 Expected return on plan assets (4,928 ) (6,408 ) — — Amortization of prior service credit (20 ) (18 ) — (22 ) Actuarial losses 1,233 1,407 45 231 Net periodic benefit cost $ 2,197 $ 2,635 $ 728 $ 1,085 |
Comprehensive Income and Accumu
Comprehensive Income and Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jul. 02, 2017 | |
Equity [Abstract] | |
Comprehensive Income and Accumulated Other Comprehensive Income (Loss) | Comprehensive Income and Accumulated Other Comprehensive Income (Loss) The following table summarizes total comprehensive income: Three Months Ended Six Months Ended July 2, 2017 July 3, 2016 July 2, 2017 July 3, 2016 (In thousands) Net income $ 35,891 $ 41,933 $ 61,472 $ 58,291 Foreign currency translation loss, net of $0.5 million, $0.3 million, $0.4 million, and $1.9 million tax, respectively (17,107 ) 1,094 (26,943 ) (1,093 ) Adjustments to pension and postretirement liability, net of $0.3 million, $0.3 million, $0.5 million, and $0.6 million tax, respectively 406 515 774 982 Total comprehensive income 19,190 43,542 35,303 58,180 Less: Comprehensive loss attributable to noncontrolling interest (77 ) (126 ) (240 ) (227 ) Comprehensive income attributable to Belden $ 19,267 $ 43,668 $ 35,543 $ 58,407 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, 2016 $ (4,661 ) $ (34,406 ) $ (39,067 ) Other comprehensive loss attributable to Belden before reclassifications (26,895 ) — (26,895 ) Amounts reclassified from accumulated other comprehensive income (loss) — 774 774 Net current period other comprehensive loss attributable to Belden (26,895 ) 774 (26,121 ) Balance at July 2, 2017 $ (31,556 ) $ (33,632 ) $ (65,188 ) The following table summarizes the effects of reclassifications from accumulated other comprehensive income (loss) for the six months ended July 2, 2017 : Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Consolidated Statements of Operations and Comprehensive Income (In thousands) Amortization of pension and other postretirement benefit plan items: Actuarial losses $ 1,278 (1) Prior service credit (20 ) (1) Total before tax 1,258 Tax benefit (484 ) Total net of tax $ 774 (1) The amortization of these accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit costs (see Note 12). |
Preferred Stock
Preferred Stock | 6 Months Ended |
Jul. 02, 2017 | |
Equity [Abstract] | |
Preferred Stock | Preferred Stock On July 26, 2016, we issued 5.2 million depositary shares, each of which represents 1/100th interest in a share of 6.75% Series B Mandatory Convertible Preferred Stock (the Preferred Stock), for an offering price of $100 per depositary share. Holders of the Preferred Stock may elect to convert their shares into common stock at any time prior to the mandatory conversion date. Unless earlier converted, each share of Preferred Stock will automatically convert into common stock on or around July 15, 2019 into between 120.46 and 132.50 shares of Belden common stock, subject to customary anti-dilution adjustments. This represents a range of 6.2 million to 6.9 million shares of Belden common stock to be issued upon conversion. The number of shares of Belden common stock issuable upon the mandatory conversion of the Preferred Stock will be determined based upon the volume-weighted average price of Belden’s common stock over the 20 day trading period beginning on, and including, the 22nd scheduled trading day prior to July 15, 2019. The net proceeds from this offering were approximately $501 million . The net proceeds are for general corporate purposes. With respect to dividend and liquidation rights, the Preferred Stock ranks senior to our common stock and junior to all of our existing and future indebtedness. During the three and six months ended July 2, 2017 , the Preferred Stock accrued $8.7 million and $17.5 million of dividends, respectively. |
Share Repurchases Share Repurch
Share Repurchases Share Repurchases | 6 Months Ended |
Jul. 02, 2017 | |
Text Block [Abstract] | |
Share Repurchases | Share Repurchases On May 25, 2017, our Board of Directors authorized a new share repurchase program, which allows us to purchase up to $200.0 million of our common stock through open market repurchases, negotiated transactions, or other means, in accordance with applicable securities laws and other restrictions. This program is funded by cash on hand and cash flows from operating activities. The program does not have an expiration date and may be suspended at any time at the discretion of the Company. We have not repurchased any shares under this program as of July 2, 2017. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jul. 02, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On July 6, 2017, we issued €450.0 million ( $509.5 million at issuance) aggregate principal amount of 3.375% Senior Subordinated Notes due 2027 (the 2027 Notes). The 2027 Notes rank equal in right of payment with our senior subordinated notes due 2026, 2024, 2023, and 2022 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 on the 2027 Notes accrues at a rate of 3.375% per annum and is payable semi-annually in arrears on January 15 and July 15 of each year, beginning on January 15, 2018. We used the net proceeds of this offering and cash on hand to repurchase $581.3 million of our outstanding $700.0 million 5.5% senior subordinated notes due 2022 that were tendered pursuant to a tender offer. On July 6, 2017, we also announced that we intend to repurchase the remaining $118.7 million of our outstanding $700.0 million notes due 2022. We expect to incur a loss on debt extinguishment in excess of $25 million related to the repurchase of our outstanding $700.0 million notes due 2022. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jul. 02, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying Condensed Consolidated Financial Statements include Belden Inc. and all of its subsidiaries (the Company, us, we, or our). We eliminate all significant affiliate accounts and transactions in consolidation. The accompanying Condensed Consolidated Financial Statements presented as of any date other than December 31, 2016 : • 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 2016 Annual Report on Form 10-K |
Business Description | Business Description We are a signal transmission solutions provider built around four global business platforms – Broadcast Solutions, Enterprise Solutions, Industrial Solutions, and Network Solutions. Our comprehensive portfolio of signal transmission solutions provides industry leading secure and reliable transmission of data, sound, and video for mission critical applications. |
Reporting Periods | Reporting Periods Our fiscal year and fiscal fourth quarter both end on December 31. Our fiscal first quarter ends on the Sunday falling closest to 91 days after December 31, which was April 2, 2017, the 92nd day of our fiscal year 2017. Our fiscal second and third quarters each have 91 days. The six months ended July 2, 2017 and July 3, 2016 included 183 and 185 days, respectivel |
Reclassifications | Reclassifications We have made certain reclassifications to the 2016 Condensed Consolidated Financial Statements with no impact to reported net income in order to conform to the 2017 presentation. |
Operating Segments | Operating Segments To leverage the Company's strengths in networking, IoT, and cybersecurity technologies, effective January 1, 2017, we formed a new segment called Network Solutions, which represents the combination of the prior Industrial IT Solutions and Network Security Solutions segments. The formation is a natural evolution in our organic and inorganic strategies for a range of industrial and non-industrial applications. We have revised the prior period segment information to conform to the change in the composition of these reportable segments. In connection with this change, we re-evaluated the useful life of the Tripwire trademark and concluded that an indefinite life is no longer appropriate. We have estimated a useful life of 10 years and will re-evaluate this estimate if and when our expected use of the Tripwire trademark changes. |
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 six months ended July 2, 2017 and July 3, 2016 , we utilized Level 1 inputs to determine the fair value of cash equivalents, and we utilized Level 2 and Level 3 inputs to determine the fair value of net assets acquired in business combinations (see Note 2). |
Cash and Cash Equivalents | Cash and Cash Equivalents We classify cash on hand and deposits in banks, including commercial paper, money market accounts, and other investments with an original maturity of three months or less, that we hold from time to time, as cash and cash equivalents. We periodically have cash equivalents consisting of short-term money market funds and other investments. The primary objective of our investment activities is to preserve our capital for the purpose of funding operations. We do not enter into investments for trading or speculative purposes. As of July 2, 2017 , we did not have any significant cash equivalents. |
Contingent Liabilities | Contingent Liabilities We have established liabilities for environmental and legal contingencies that are probable of occurrence and reasonably estimable, the amounts of which are currently not material. We accrue environmental remediation costs based on estimates of known environmental remediation exposures developed in consultation with our environmental consultants and legal counsel. We are, from time to time, subject to routine litigation incidental to our business. These lawsuits primarily involve claims for damages arising out of the use of our products, allegations of patent or trademark infringement, and litigation and administrative proceedings involving employment matters and commercial disputes. Based on facts currently available, we believe the disposition of the claims that are pending or asserted will not have a materially adverse effect on our financial position, results of operations, or cash flow. |
Revenue Recognition | Revenue Recognition We recognize revenue when all of the following circumstances are satisfied: (1) persuasive evidence of an arrangement exists, (2) price is fixed or determinable, (3) collectability is reasonably assured, and (4) delivery has occurred. Delivery occurs in the period in which the customer takes title and assumes the risks and rewards of ownership of the products specified in the customer’s purchase order or sales agreement. At times, we enter into arrangements that involve the delivery of multiple elements. For these arrangements, when the elements can be separated, the revenue is allocated to each deliverable based on that element’s relative selling price and recognized based on the period of delivery for each element. Generally, we determine relative selling price using vendor specific objective evidence (VSOE) of fair value. We record revenue net of estimated rebates, price allowances, invoicing adjustments, and product returns. We record revisions to these estimates in the period in which the facts that give rise to each revision become known. Taxes collected from customers and remitted to governmental authorities are not included in our revenues. We have certain products subject to the accounting guidance on software revenue recognition. For such products, software license revenue is recognized when persuasive evidence of an arrangement exists, delivery of the product has occurred, the fee is fixed or determinable, collection is probable and VSOE of the fair value of undelivered elements exists. As substantially all of the software licenses are sold in multiple-element arrangements that include either support and maintenance or both support and maintenance and professional services, we use the residual method to determine the amount of software license revenue to be recognized. Under the residual method, consideration is allocated to undelivered elements based upon VSOE of the fair value of those elements, with the residual of the arrangement fee allocated to and recognized as software license revenue. We have established VSOE of the fair value of support and maintenance, subscription-based software licenses, and professional services. Software license revenue is generally recognized upon delivery of the software if all revenue recognition criteria are met. Revenue allocated to support services under our support and maintenance contracts is typically paid in advance and recognized ratably over the term of the service. Revenue allocated to subscription-based software and remote ongoing operational services is also paid in advance and recognized ratably over the term of the service. Revenue allocated to professional services, including remote implementation services, is recognized as the services are performed. |
Subsequent Events | Subsequent Events We have evaluated subsequent events after the balance sheet date through the financial statement issuance date for appropriate accounting and disclosure. |
Pending Adoption of Recent Accounting Pronouncements | Pending Adoption of Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which will replace most existing revenue recognition guidance in U.S. GAAP. The core principle of the ASU is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. ASU 2014-09 requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. We plan to adopt ASU 2014-09 on January 1, 2018, using the modified retrospective method of adoption. Our overall, initial assessment indicates that the impact of adopting ASU 2014-09 on our consolidated financial statements will not be material. We do not expect significant changes in the timing or method of revenue recognition for any of our material revenue streams. We are currently completing detailed contract reviews to determine if any adjustments are necessary to our existing accounting policies and to support our overall, initial assessment. We believe the most significant impact of adopting ASU 2014-09 will be on our disclosures regarding revenue recognition. We will continue our evaluation of ASU 2014-09, including new or emerging interpretations of the standard, through the date of adoption. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (ASU 2016-02), a leasing standard for both lessees and lessors. Under its core principle, a lessee will recognize lease assets and liabilities on the balance sheet for all arrangements with terms longer than 12 months. Lessor accounting remains largely consistent with existing U.S. generally accepted accounting principles. The new standard will be effective for us beginning January 1, 2019. Early adoption is permitted. The standard requires the use of a modified retrospective transition method. We are evaluating the effect that ASU 2016-02 will have on our consolidated financial statements and related disclosures. In October 2016, the FASB issued Accounting Standards Update No. 2016-16, Intra-Entity Transfers of Assets Other Than Inventory (ASU 2016-16), which requires recognition of the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Consequently, the standard eliminates the exception to the recognition of current and deferred income taxes for an intra-entity asset transfer other than for inventory until the asset has been sold to an outside party. The new standard will be effective for us January 1, 2018. Early adoption is permitted. We are evaluating the effect that ASU 2016-16 will have on our consolidated financial statements and related disclosures. In March 2017, the FASB issued Accounting Standards Update No. 2017-07, Compensation - Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (ASU 2017-07), which requires an entity to report the service cost component in the same line item or items as other compensation costs arising from the service rendered by their employees during the period. The other components of net benefit cost are required to be presented in the Statement of Operations separately from the service cost component after Operating Income. Additionally, only the service cost component will be eligible for capitalization, when applicable. The standard requires the amendments to be applied retrospectively for the presentation of the service cost component and the other cost components of net periodic pension cost and net periodic OPEB cost in the Statement of Operations and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension and OPEB costs. The new standard will be effective for us January 1, 2018. Early adoption is permitted. We are evaluating the effect that ASU 2017-07 will have on our consolidated financial statements and related disclosures. |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jul. 02, 2017 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair value of the assets acquired and the liabilities assumed as of May 31, 2017 (in thousands): Cash $ 5,327 Receivables 4,355 Inventory 17,291 Prepaid and other current assets 405 Property, plant, and equipment 4,289 Intangible assets 86,250 Goodwill 57,513 Total assets acquired $ 175,430 Accounts payable $ 1,231 Accrued liabilities 1,353 Deferred revenue 1,574 Total liabilities assumed $ 4,158 Net assets $ 171,272 |
Schedule of Acquired Intangible Assets | The intangible assets related to the acquisition consisted of the following: Fair Value Amortization Period (In thousands) (In years) Intangible assets subject to amortization: Developed technologies $ 60,000 5.0 Customer relationships 20,000 15.0 Trademarks 3,750 10.0 Sales backlog 2,500 0.3 Total intangible assets subject to amortization $ 86,250 Intangible assets not subject to amortization: Goodwill $ 57,513 n/a Total intangible assets not subject to amortization $ 57,513 Total intangible assets $ 143,763 Weighted average amortization period 7.4 |
Schedule of Pro Forma Information | The following table illustrates the unaudited pro forma effect on operating results as if the Thinklogical acquisition had been completed as of January 1, 2016. Three Months Ended Six Months Ended July 2, 2017 July 3, 2016 July 2, 2017 July 3, 2016 (In thousands, except per share data) (Unaudited) Revenues $ 615,109 $ 608,517 $ 1,170,745 $ 1,155,428 Net income attributable to Belden common stockholders 28,250 38,194 41,130 47,520 Diluted income per share attributable to Belden common stockholders $ 0.66 $ 0.90 $ 0.96 $ 1.12 |
Assets Held for Sale (Tables)
Assets Held for Sale (Tables) | 6 Months Ended |
Jul. 02, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Major Assets and Liabilities Classified as Held for Sale | The following table provides the major classes of assets and liabilities classified as held for sale as of July 2, 2017 and December 31, 2016. In addition, the disposal group had $8.9 million and $15.7 million of accumulated other comprehensive losses at July 2, 2017 and December 31, 2016, respectively. July 2, 2017 December 31, 2016 (In thousands) Receivables, net $ 4,881 $ 4,551 Inventories, net 3,902 2,848 Other current assets 1,190 1,131 Property, plant, and equipment 2,195 1,946 Intangible assets 4,534 4,405 Goodwill 5,477 5,477 Other long-lived assets 32,495 26,766 Total assets of disposal group 54,674 47,124 Impairment of assets held for sale (23,931 ) (23,931 ) Total assets held for sale $ 30,743 $ 23,193 Accrued liabilities $ 1,409 $ 1,288 Postretirement benefits 394 448 Total liabilities held for sale $ 1,803 $ 1,736 |
Operating Segments (Tables)
Operating Segments (Tables) | 6 Months Ended |
Jul. 02, 2017 | |
Segment Reporting [Abstract] | |
Operating Segment Information | Our measure of segment assets does not include cash, goodwill, intangible assets, deferred tax assets, or corporate assets. All goodwill is allocated to reporting units of our segments for purposes of impairment testing. Broadcast Solutions Enterprise Solutions Industrial Solutions Network Solutions Total Segments (In thousands) As of and for the three months ended July 2, 2017 Segment revenues $ 188,071 $ 160,733 $ 159,255 $ 102,574 $ 610,633 Affiliate revenues 94 1,545 275 32 1,946 Segment EBITDA 29,610 26,801 31,036 22,780 110,227 Depreciation expense 4,058 2,695 3,168 1,607 11,528 Amortization expense 13,453 429 640 12,591 27,113 Severance, restructuring, and acquisition integration costs 970 8,141 346 103 9,560 Purchase accounting effects of acquisitions 1,167 — — — 1,167 Segment assets 359,160 275,770 282,068 105,070 1,022,068 As of and for the three months ended July 3, 2016 Segment revenues $ 193,521 $ 160,401 $ 147,808 $ 101,651 $ 603,381 Affiliate revenues 173 1,328 214 4 1,719 Segment EBITDA 29,505 29,575 27,064 22,191 108,335 Depreciation expense 4,061 3,429 2,709 1,788 11,987 Amortization expense 13,420 432 601 11,810 26,263 Severance, restructuring, and acquisition integration costs 1,319 1,207 2,371 972 5,869 Deferred gross profit adjustments 494 — — 1,256 1,750 Segment assets 329,250 253,424 255,250 107,176 945,100 As of and for the six months ended July 2, 2017 Segment revenues $ 356,667 $ 306,415 $ 305,436 $ 193,496 $ 1,162,014 Affiliate revenues 195 4,103 662 92 5,052 Segment EBITDA 55,010 50,901 56,769 40,657 203,337 Depreciation expense 8,007 5,294 6,374 3,236 22,911 Amortization expense 23,468 853 1,282 25,179 50,782 Severance, restructuring, and acquisition integration costs 1,378 13,014 1,467 301 16,160 Purchase accounting effects of acquisitions 1,167 — — — 1,167 Segment assets 359,160 275,770 282,068 105,070 1,022,068 As of and for the six months ended July 3, 2016 Segment revenues $ 364,793 $ 296,293 $ 288,899 $ 197,196 $ 1,147,181 Affiliate revenues 597 3,027 396 32 4,052 Segment EBITDA 52,772 53,311 50,051 42,267 198,401 Depreciation expense 8,023 6,818 5,427 3,382 23,650 Amortization expense 26,351 861 1,192 23,391 51,795 Severance, restructuring, and acquisition integration costs 5,697 1,707 3,236 3,637 14,277 Purchase accounting effects of acquisitions 195 — — — 195 Deferred gross profit adjustments 1,108 — — 2,945 4,053 Segment assets 329,250 253,424 255,250 107,176 945,100 |
Reconciliation of Total Reportable Segments' Revenues and EBITDA to Consolidated Revenues and Consolidated Income from Continuing Operations Before Taxes | The following table is a reconciliation of the total of the reportable segments’ Revenues and EBITDA to consolidated revenues and consolidated income before taxes, respectively. Three Months Ended Six Months Ended July 2, 2017 July 3, 2016 July 2, 2017 July 3, 2016 (In thousands) Total Segment Revenues $ 610,633 $ 603,381 $ 1,162,014 $ 1,147,181 Deferred revenue adjustments (1) — (1,750 ) — (4,053 ) Consolidated Revenues $ 610,633 $ 601,631 $ 1,162,014 $ 1,143,128 Total Segment EBITDA $ 110,227 $ 108,335 $ 203,337 $ 198,401 Amortization of intangibles (27,113 ) (26,263 ) (50,782 ) (51,795 ) Depreciation expense (11,528 ) (11,987 ) (22,911 ) (23,650 ) Severance, restructuring, and acquisition integration costs (2) (9,560 ) (5,869 ) (16,160 ) (14,277 ) Purchase accounting effects related to acquisitions (3) (1,167 ) — (1,167 ) (195 ) Deferred gross profit adjustments (1) — (1,750 ) — (4,053 ) Income from equity method investment 2,277 661 3,284 491 Eliminations (655 ) (886 ) (1,783 ) (1,717 ) Consolidated operating income 62,481 62,241 113,818 103,205 Interest expense, net (23,533 ) (24,049 ) (47,039 ) (48,445 ) Loss on debt extinguishment (847 ) — (847 ) — Consolidated income before taxes $ 38,101 $ 38,192 $ 65,932 $ 54,760 (1) For the three and six months ended July 3, 2016 , our segment results include revenues that would have been recorded by acquired businesses had they remained as independent entities. Our consolidated results do not include these revenues due to the purchase accounting effect of recording deferred revenue at fair value. (2) See Note 8, Severance, Restructuring, and Acquisition Integration Activities, for details . (3) For the three and six months ended July 2, 2017 and July 3, 2016 , we recognized cost of sales for the adjustment of acquired inventory to fair value related to the Thinklogical and M2FX acquisitions, respectively. |
Income per Share (Tables)
Income per Share (Tables) | 6 Months Ended |
Jul. 02, 2017 | |
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 Six Months Ended July 2, 2017 July 3, 2016 July 2, 2017 July 3, 2016 (In Thousands) Numerator: Net income $ 35,891 $ 41,933 $ 61,472 $ 58,291 Less: Net loss attributable to noncontrolling interest (86 ) (99 ) (192 ) (198 ) Less: Preferred stock dividends 8,733 — 17,466 — Net income attributable to Belden common stockholders $ 27,244 $ 42,032 $ 44,198 $ 58,489 Denominator: Weighted average shares outstanding, basic 42,283 42,085 42,249 42,046 Effect of dilutive common stock equivalents 549 448 504 413 Weighted average shares outstanding, diluted 42,832 42,533 42,753 42,459 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jul. 02, 2017 | |
Inventory Disclosure [Abstract] | |
Major Classes of Inventories | The major classes of inventories were as follows: July 2, 2017 December 31, 2016 (In thousands) Raw materials $ 115,637 $ 90,019 Work-in-process 40,310 25,166 Finished goods 123,993 99,784 Gross inventories 279,940 214,969 Excess and obsolete reserves (27,406 ) (24,561 ) Net inventories $ 252,534 $ 190,408 |
Severance, Restructuring, and29
Severance, Restructuring, and Acquisition Integration Activities (Tables) | 6 Months Ended |
Jul. 02, 2017 | |
Restructuring and Related Activities [Abstract] | |
Severance, Restructuring and Integration Costs by Segment | The following table summarizes the costs by segment of the various programs described above as well as other immaterial programs and acquisition integration activities: Severance Other Restructuring and Integration Costs Total Costs Three Months Ended July 2, 2017 (In thousands) Broadcast Solutions $ — $ 970 $ 970 Enterprise Solutions 1,275 6,866 8,141 Industrial Solutions 153 193 346 Network Solutions — 103 103 Total $ 1,428 $ 8,132 $ 9,560 Three Months Ended July 3, 2016 Broadcast Solutions $ (109 ) $ 1,428 $ 1,319 Enterprise Solutions 71 1,136 1,207 Industrial Solutions 1,180 1,191 2,371 Network Solutions 309 663 972 Total $ 1,451 $ 4,418 $ 5,869 Six Months Ended July 2, 2017 Broadcast Solutions $ 49 $ 1,329 $ 1,378 Enterprise Solutions 2,127 10,887 13,014 Industrial Solutions 153 1,314 1,467 Network Solutions — 301 301 Total $ 2,329 $ 13,831 $ 16,160 Six Months Ended July 3, 2016 Broadcast Solutions $ (751 ) $ 6,448 $ 5,697 Enterprise Solutions 76 1,631 1,707 Industrial Solutions 1,777 1,459 3,236 Network Solutions 2,631 1,006 3,637 Total $ 3,733 $ 10,544 $ 14,277 |
Long-Term Debt and Other Borr30
Long-Term Debt and Other Borrowing Arrangements (Tables) | 6 Months Ended |
Jul. 02, 2017 | |
Debt Disclosure [Abstract] | |
Carrying Values of Long-Term Debt and Other Borrowing Arrangements | The carrying values of our long-term debt were as follows: July 2, 2017 December 31, 2016 (In thousands) Revolving credit agreement due 2022 $ — $ — Senior subordinated notes: 4.125% Senior subordinated notes due 2026 227,120 209,081 5.25% Senior subordinated notes due 2024 200,000 200,000 5.50% Senior subordinated notes due 2023 573,722 529,146 5.50% Senior subordinated notes due 2022 700,000 700,000 9.25% Senior subordinated notes due 2019 — 5,221 Total senior subordinated notes 1,700,842 1,643,448 Less unamortized debt issuance costs (21,460 ) (23,287 ) Long-term debt $ 1,679,382 $ 1,620,161 |
Pension and Other Postretirem31
Pension and Other Postretirement Obligations (Tables) | 6 Months Ended |
Jul. 02, 2017 | |
Retirement Benefits [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 July 2, 2017 July 3, 2016 July 2, 2017 July 3, 2016 (In thousands) Service cost $ 1,251 $ 1,426 $ 13 $ 16 Interest cost 1,874 2,424 329 480 Expected return on plan assets (2,567 ) (3,216 ) — — Amortization of prior service credit (9 ) (9 ) — (11 ) Actuarial losses 645 709 23 149 Net periodic benefit cost $ 1,194 $ 1,334 $ 365 $ 634 Six Months Ended Service cost $ 2,343 $ 2,835 $ 27 $ 29 Interest cost 3,569 4,819 656 847 Expected return on plan assets (4,928 ) (6,408 ) — — Amortization of prior service credit (20 ) (18 ) — (22 ) Actuarial losses 1,233 1,407 45 231 Net periodic benefit cost $ 2,197 $ 2,635 $ 728 $ 1,085 |
Comprehensive Income and Accu32
Comprehensive Income and Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jul. 02, 2017 | |
Equity [Abstract] | |
Total Comprehensive Income | The following table summarizes total comprehensive income: Three Months Ended Six Months Ended July 2, 2017 July 3, 2016 July 2, 2017 July 3, 2016 (In thousands) Net income $ 35,891 $ 41,933 $ 61,472 $ 58,291 Foreign currency translation loss, net of $0.5 million, $0.3 million, $0.4 million, and $1.9 million tax, respectively (17,107 ) 1,094 (26,943 ) (1,093 ) Adjustments to pension and postretirement liability, net of $0.3 million, $0.3 million, $0.5 million, and $0.6 million tax, respectively 406 515 774 982 Total comprehensive income 19,190 43,542 35,303 58,180 Less: Comprehensive loss attributable to noncontrolling interest (77 ) (126 ) (240 ) (227 ) Comprehensive income attributable to Belden $ 19,267 $ 43,668 $ 35,543 $ 58,407 |
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, 2016 $ (4,661 ) $ (34,406 ) $ (39,067 ) Other comprehensive loss attributable to Belden before reclassifications (26,895 ) — (26,895 ) Amounts reclassified from accumulated other comprehensive income (loss) — 774 774 Net current period other comprehensive loss attributable to Belden (26,895 ) 774 (26,121 ) Balance at July 2, 2017 $ (31,556 ) $ (33,632 ) $ (65,188 ) |
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 six months ended July 2, 2017 : Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Consolidated Statements of Operations and Comprehensive Income (In thousands) Amortization of pension and other postretirement benefit plan items: Actuarial losses $ 1,278 (1) Prior service credit (20 ) (1) Total before tax 1,258 Tax benefit (484 ) Total net of tax $ 774 (1) The amortization of these accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit costs (see Note 12). |
Summary of Significant Accoun33
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | Jul. 05, 2011patent | Nov. 30, 2016USD ($) | Jul. 31, 2015patent | Jul. 02, 2017USD ($) | Jul. 03, 2016USD ($) | Jul. 02, 2017USD ($)Segment | Jul. 03, 2016USD ($) |
Significant Accounting Policies [Line Items] | |||||||
Number of global business platforms | Segment | 4 | ||||||
Amortization expense | $ 27,113 | $ 26,263 | $ 50,782 | $ 51,795 | |||
Standby Letters of Credit | |||||||
Significant Accounting Policies [Line Items] | |||||||
Loss contingency, range of possible loss, portion not accrued | 8,100 | 8,100 | |||||
Surety Bonds | |||||||
Significant Accounting Policies [Line Items] | |||||||
Loss contingency, range of possible loss, portion not accrued | 2,400 | 2,400 | |||||
Bank Guaranties | |||||||
Significant Accounting Policies [Line Items] | |||||||
Loss contingency, range of possible loss, portion not accrued | 1,800 | $ 1,800 | |||||
PPC | Corning | |||||||
Significant Accounting Policies [Line Items] | |||||||
Gain contingency, number of patents allegedly infringed upon | patent | 2 | ||||||
Gain contingency, number of patents infringed upon | patent | 2 | ||||||
Litigation settlement amount | $ 61,300 | ||||||
Trademarks | |||||||
Significant Accounting Policies [Line Items] | |||||||
Useful life (in years) | 10 years | ||||||
Amortization expense | $ 800 | $ 1,600 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | May 31, 2017 | Jan. 07, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 |
Business Acquisition [Line Items] | ||||||
Income before taxes | $ 38,101 | $ 38,192 | $ 65,932 | $ 54,760 | ||
Thinklogical Holdings LLC | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of outstanding shares acquired | 100.00% | |||||
Acquisition price | $ 171,300 | |||||
Receivables | $ 4,355 | |||||
Business combination, goodwill, tax deductible amount | 57,500 | $ 57,500 | ||||
Business acquisition, goodwill, tax deductible period | 15 years | |||||
Income before taxes | $ 10,200 | $ 1,100 | ||||
M2FX Limited | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of outstanding shares acquired | 100.00% | |||||
Acquisition price | $ 19,000 |
Acquisitions - Schedule of Reco
Acquisitions - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jul. 02, 2017 | May 31, 2017 | Dec. 31, 2016 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | |||
Goodwill | $ 1,453,993 | $ 1,385,995 | |
Thinklogical Holdings LLC | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | |||
Cash | $ 5,327 | ||
Receivables | 4,355 | ||
Inventory | 17,291 | ||
Prepaid and other current assets | 405 | ||
Property, plant, and equipment | 4,289 | ||
Intangible assets | 86,250 | ||
Goodwill | 57,513 | ||
Total assets acquired | 175,430 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | |||
Accounts payable | 1,231 | ||
Accrued liabilities | 1,353 | ||
Deferred revenue | 1,574 | ||
Total liabilities assumed | 4,158 | ||
Net assets | $ 171,272 |
Acquisitions - Schedule of Acqu
Acquisitions - Schedule of Acquired Intangible Assets (Details) - Thinklogical Holdings LLC $ in Thousands | May 31, 2017USD ($) |
Business Acquisition [Line Items] | |
Fair Value | $ 86,250 |
Amortization Period | 7 years 4 months 24 days |
Fair Value | $ 57,513 |
Total intangible assets | 143,763 |
Developed Technology Rights [Member] | |
Business Acquisition [Line Items] | |
Fair Value | $ 60,000 |
Amortization Period | 5 years |
Customer Relationships [Member] | |
Business Acquisition [Line Items] | |
Fair Value | $ 20,000 |
Amortization Period | 15 years |
Trademarks | |
Business Acquisition [Line Items] | |
Fair Value | $ 3,750 |
Amortization Period | 10 years |
Order or Production Backlog [Member] | |
Business Acquisition [Line Items] | |
Fair Value | $ 2,500 |
Amortization Period | 3 months 19 days |
Goodwill | |
Business Acquisition [Line Items] | |
Fair Value | $ 57,513 |
Acquisitions - Schedule of Pro
Acquisitions - Schedule of Pro Forma Information (Details) - Thinklogical Holdings LLC - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | |
Business Acquisition [Line Items] | ||||
Revenues | $ 615,109 | $ 608,517 | $ 1,170,745 | $ 1,155,428 |
Net income attributable to Belden common stockholders | $ 28,250 | $ 38,194 | $ 41,130 | $ 47,520 |
Diluted income per share attributable to Belden common stockholders (in usd per share) | $ 0.66 | $ 0.90 | $ 0.96 | $ 1.12 |
Assets Held for Sale (Details)
Assets Held for Sale (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jul. 02, 2017 | Dec. 31, 2016 | Apr. 02, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Accumulated other comprehensive loss | $ (65,188) | $ (39,067) | |
Total assets held for sale | 30,743 | 23,193 | |
Total liabilities held for sale | 1,803 | 1,736 | |
Hirschmann Jv | Discontinued Operations, Held-for-sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Disposition, sales price | 39,000 | $ 39,000 | |
Accumulated other comprehensive loss | 8,900 | 15,700 | |
Receivables, net | 4,881 | 4,551 | |
Inventories, net | 3,902 | 2,848 | |
Other current assets | 1,190 | 1,131 | |
Property, plant, and equipment | 2,195 | 1,946 | |
Intangible assets | 4,534 | 4,405 | |
Goodwill | 5,477 | 5,477 | |
Other long-lived assets | 32,495 | 26,766 | |
Total assets of disposal group | 54,674 | 47,124 | |
Impairment of assets held for sale | 23,931 | (23,931) | |
Total assets held for sale | 30,743 | 23,193 | |
Accrued liabilities | 1,409 | 1,288 | |
Postretirement benefits | 394 | 448 | |
Total liabilities held for sale | $ 1,803 | $ 1,736 |
Operating Segments - Additional
Operating Segments - Additional Information (Detail) | 6 Months Ended |
Jul. 02, 2017Segment | |
Segment Reporting [Abstract] | |
Number of global business platforms | 4 |
Operating Segments - Operating
Operating Segments - Operating Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||
Depreciation expense | $ 11,500 | $ 12,000 | $ 22,900 | $ 23,700 | |
Amortization expense | 27,113 | 26,263 | 50,782 | 51,795 | |
Severance, restructuring, and acquisition integration costs | 9,560 | 5,869 | 16,160 | 14,277 | |
Segment assets | 3,862,670 | 3,862,670 | $ 3,806,803 | ||
Broadcast Solutions | |||||
Segment Reporting Information [Line Items] | |||||
Severance, restructuring, and acquisition integration costs | 970 | 1,319 | 1,378 | 5,697 | |
Enterprise Solutions | |||||
Segment Reporting Information [Line Items] | |||||
Severance, restructuring, and acquisition integration costs | 8,141 | 1,207 | 13,014 | 1,707 | |
Industrial Solutions | |||||
Segment Reporting Information [Line Items] | |||||
Severance, restructuring, and acquisition integration costs | 346 | 2,371 | 1,467 | 3,236 | |
Reportable Segment | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenues | 610,633 | 603,381 | 1,162,014 | 1,147,181 | |
Affiliate revenues | 1,946 | 1,719 | 5,052 | 4,052 | |
Segment EBITDA | 110,227 | 108,335 | 203,337 | 198,401 | |
Depreciation expense | 11,528 | 11,987 | 22,911 | 23,650 | |
Amortization expense | 27,113 | 26,263 | 50,782 | 51,795 | |
Severance, restructuring, and acquisition integration costs | 9,560 | 5,869 | 16,160 | 14,277 | |
Purchase accounting effects of acquisitions | 1,167 | 0 | 1,167 | 195 | |
Deferred gross profit adjustments | 0 | 1,750 | 0 | 4,053 | |
Segment assets | 1,022,068 | 945,100 | 1,022,068 | 945,100 | |
Reportable Segment | Broadcast Solutions | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenues | 188,071 | 193,521 | 356,667 | 364,793 | |
Affiliate revenues | 94 | 173 | 195 | 597 | |
Segment EBITDA | 29,610 | 29,505 | 55,010 | 52,772 | |
Depreciation expense | 4,058 | 4,061 | 8,007 | 8,023 | |
Amortization expense | 13,453 | 13,420 | 23,468 | 26,351 | |
Severance, restructuring, and acquisition integration costs | 970 | 1,319 | 1,378 | 5,697 | |
Purchase accounting effects of acquisitions | 1,167 | 1,167 | 195 | ||
Deferred gross profit adjustments | 494 | 1,108 | |||
Segment assets | 359,160 | 329,250 | 359,160 | 329,250 | |
Reportable Segment | Enterprise Solutions | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenues | 160,733 | 160,401 | 306,415 | 296,293 | |
Affiliate revenues | 1,545 | 1,328 | 4,103 | 3,027 | |
Segment EBITDA | 26,801 | 29,575 | 50,901 | 53,311 | |
Depreciation expense | 2,695 | 3,429 | 5,294 | 6,818 | |
Amortization expense | 429 | 432 | 853 | 861 | |
Severance, restructuring, and acquisition integration costs | 8,141 | 1,207 | 13,014 | 1,707 | |
Purchase accounting effects of acquisitions | 0 | 0 | 0 | ||
Deferred gross profit adjustments | 0 | 0 | |||
Segment assets | 275,770 | 253,424 | 275,770 | 253,424 | |
Reportable Segment | Industrial Solutions | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenues | 159,255 | 147,808 | 305,436 | 288,899 | |
Affiliate revenues | 275 | 214 | 662 | 396 | |
Segment EBITDA | 31,036 | 27,064 | 56,769 | 50,051 | |
Depreciation expense | 3,168 | 2,709 | 6,374 | 5,427 | |
Amortization expense | 640 | 601 | 1,282 | 1,192 | |
Severance, restructuring, and acquisition integration costs | 346 | 2,371 | 1,467 | 3,236 | |
Purchase accounting effects of acquisitions | 0 | 0 | 0 | ||
Deferred gross profit adjustments | 0 | 0 | |||
Segment assets | 282,068 | 255,250 | 282,068 | 255,250 | |
Reportable Segment | Network Solutions | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenues | 102,574 | 101,651 | 193,496 | 197,196 | |
Affiliate revenues | 32 | 4 | 92 | 32 | |
Segment EBITDA | 22,780 | 22,191 | 40,657 | 42,267 | |
Depreciation expense | 1,607 | 1,788 | 3,236 | 3,382 | |
Amortization expense | 12,591 | 11,810 | 25,179 | 23,391 | |
Severance, restructuring, and acquisition integration costs | 103 | 972 | 301 | 3,637 | |
Purchase accounting effects of acquisitions | 0 | 0 | 0 | ||
Deferred gross profit adjustments | 1,256 | 2,945 | |||
Segment assets | $ 105,070 | $ 107,176 | $ 105,070 | $ 107,176 |
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 | 6 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Consolidated Revenues | $ 610,633 | $ 601,631 | $ 1,162,014 | $ 1,143,128 |
Amortization of intangibles | (27,113) | (26,263) | (50,782) | (51,795) |
Depreciation expense | (11,500) | (12,000) | (22,900) | (23,700) |
Severance, restructuring, and acquisition integration costs | (9,560) | (5,869) | (16,160) | (14,277) |
Operating income | 62,481 | 62,241 | 113,818 | 103,205 |
Interest expense, net | (23,533) | (24,049) | (47,039) | (48,445) |
Loss on debt extinguishment | (847) | 0 | (847) | 0 |
Income before taxes | 38,101 | 38,192 | 65,932 | 54,760 |
Reportable Segment | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total Segment Revenues | 610,633 | 603,381 | 1,162,014 | 1,147,181 |
Deferred revenue adjustments | 0 | (1,750) | 0 | (4,053) |
Consolidated Revenues | 610,633 | 601,631 | 1,162,014 | 1,143,128 |
Total Segment EBITDA | 110,227 | 108,335 | 203,337 | 198,401 |
Amortization of intangibles | (27,113) | (26,263) | (50,782) | (51,795) |
Depreciation expense | (11,528) | (11,987) | (22,911) | (23,650) |
Severance, restructuring, and acquisition integration costs | (9,560) | (5,869) | (16,160) | (14,277) |
Purchase accounting effects related to acquisitions | (1,167) | 0 | (1,167) | (195) |
Deferred gross profit adjustments | 0 | (1,750) | 0 | (4,053) |
Income from equity method investment | 2,277 | 661 | 3,284 | 491 |
Eliminations | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating income | $ (655) | $ (886) | $ (1,783) | $ (1,717) |
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 | 6 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | |
Net Income (Loss) Available to Common Stockholders, Basic [Abstract] | ||||
Net income | $ 35,891 | $ 41,933 | $ 61,472 | $ 58,291 |
Less: Net loss attributable to noncontrolling interest | (86) | (99) | (192) | (198) |
Less: Preferred stock dividends | 8,733 | 0 | 17,466 | 0 |
Net income attributable to Belden common stockholders | $ 27,244 | $ 42,032 | $ 44,198 | $ 58,489 |
Denominator: | ||||
Weighted average shares outstanding, basic (in shares) | 42,283 | 42,085 | 42,249 | 42,046 |
Effect of dilutive common stock equivalents (in shares) | 549 | 448 | 504 | 413 |
Weighted average shares outstanding, diluted (in shares) | 42,832 | 42,533 | 42,753 | 42,459 |
Income Per Share - Additional I
Income Per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares excluded from diluted weighted average shares outstanding | 0.4 | 0.7 | 0.4 | 0.8 |
Anti-dilutive shares excluded from diluted weighted average shares outstanding due to performance conditions not being met | 0.2 | 0.1 | 0.2 | |
Convertible Preferred Stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares excluded from diluted weighted average shares outstanding | 6.9 | 6.9 |
Inventories - Major Classes of
Inventories - Major Classes of Inventories (Detail) - USD ($) $ in Thousands | Jul. 02, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 115,637 | $ 90,019 |
Work-in-process | 40,310 | 25,166 |
Finished goods | 123,993 | 99,784 |
Gross inventories | 279,940 | 214,969 |
Excess and obsolete reserves | (27,406) | (24,561) |
Net inventories | $ 252,534 | $ 190,408 |
Long-Lived Assets - Additional
Long-Lived Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Depreciation expense | $ 11,500 | $ 12,000 | $ 22,900 | $ 23,700 |
Amortization of intangible assets | 27,113 | $ 26,263 | $ 50,782 | $ 51,795 |
Trademarks | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Useful life (in years) | 10 years | |||
Amortization of intangible assets | 800 | $ 1,600 | ||
Intangible assets | $ 29,400 | $ 29,400 |
Severance, Restructuring and Ac
Severance, Restructuring and Acquisition Integration Activities - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 18 Months Ended | 21 Months Ended | 24 Months Ended | 27 Months Ended | ||||
Jul. 02, 2017 | Apr. 02, 2017 | Jul. 03, 2016 | Dec. 31, 2017 | Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 02, 2017 | Jul. 02, 2017 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||||||||
Severance, restructuring, and acquisition integration costs | $ 9,560 | $ 5,869 | $ 16,160 | $ 14,277 | ||||||
Cost of Sales | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Severance, restructuring, and acquisition integration costs | 8,200 | 1,800 | 14,100 | 3,900 | ||||||
Selling, General and Administrative Expenses | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Severance, restructuring, and acquisition integration costs | 1,400 | 3,600 | 2,100 | 9,700 | ||||||
Research and Development | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Severance, restructuring, and acquisition integration costs | 500 | 700 | ||||||||
Industrial Restructuring Program | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Severance, restructuring, and acquisition integration costs | 2,400 | 5,800 | $ 13,000 | |||||||
Expected savings from the restructuring program | 18,000 | |||||||||
Industrial Manufacturing Footprint Program | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Severance, restructuring, and acquisition integration costs | 8,200 | 2,000 | 13,900 | 2,500 | $ 31,700 | |||||
Additional severance and other restructuring costs | $ 11,000 | $ 11,000 | $ 11,000 | $ 11,000 | $ 11,000 | |||||
Grass Valley Restructuring Program | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Severance, restructuring, and acquisition integration costs | $ 0 | $ 900 | $ 5,000 | $ 34,100 | ||||||
Scenario, Forecast | Industrial Manufacturing Footprint Program | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Expected savings from the restructuring program | $ 13,000 | |||||||||
Scenario, Forecast | Grass Valley Restructuring Program | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Savings from the restructuring program | $ 30,000 | |||||||||
Maximum | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and integration cost payable period | 60 days |
Severance, Restructuring and 47
Severance, Restructuring and Acquisition Integration Activities - Severance, Restructuring and Integration Costs by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||||
Total Costs | $ 9,560 | $ 5,869 | $ 16,160 | $ 14,277 |
Broadcast Solutions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total Costs | 970 | 1,319 | 1,378 | 5,697 |
Enterprise Solutions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total Costs | 8,141 | 1,207 | 13,014 | 1,707 |
Industrial Solutions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total Costs | 346 | 2,371 | 1,467 | 3,236 |
Network Solutions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total Costs | 103 | 972 | 301 | 3,637 |
Severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance | 1,428 | 1,451 | 2,329 | 3,733 |
Severance | Broadcast Solutions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance | 0 | (109) | 49 | (751) |
Severance | Enterprise Solutions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance | 1,275 | 71 | 2,127 | 76 |
Severance | Industrial Solutions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance | 153 | 1,180 | 153 | 1,777 |
Severance | Network Solutions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance | 0 | 309 | 0 | 2,631 |
Other Restructuring and Integration Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Restructuring and Integration Costs | 8,132 | 4,418 | 13,831 | 10,544 |
Other Restructuring and Integration Costs | Broadcast Solutions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Restructuring and Integration Costs | 970 | 1,428 | 1,329 | 6,448 |
Other Restructuring and Integration Costs | Enterprise Solutions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Restructuring and Integration Costs | 6,866 | 1,136 | 10,887 | 1,631 |
Other Restructuring and Integration Costs | Industrial Solutions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Restructuring and Integration Costs | 193 | 1,191 | 1,314 | 1,459 |
Other Restructuring and Integration Costs | Network Solutions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Restructuring and Integration Costs | $ 103 | $ 663 | $ 301 | $ 1,006 |
Long-Term Debt and Other Borr48
Long-Term Debt and Other Borrowing Arrangements - Carrying Values of Long-Term Debt and Other Borrowing Arrangements (Detail) - USD ($) | Jul. 02, 2017 | Apr. 02, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | |||
Total senior subordinated notes | $ 1,700,842,000 | $ 1,643,448,000 | |
Less unamortized debt issuance costs | (21,460,000) | (23,287,000) | |
Long-term debt | 1,679,382,000 | 1,620,161,000 | |
Revolving credit agreement due 2022 | |||
Debt Instrument [Line Items] | |||
Revolving credit agreement due 2022 | 0 | 0 | |
4.125% Senior subordinated notes due 2026 | |||
Debt Instrument [Line Items] | |||
Total senior subordinated notes | 227,120,000 | 209,081,000 | |
Senior subordinated notes interest rate | 4.125% | ||
5.25% Senior subordinated notes due 2024 | |||
Debt Instrument [Line Items] | |||
Total senior subordinated notes | 200,000,000 | 200,000,000 | |
Senior subordinated notes interest rate | 5.25% | ||
5.50% Senior subordinated notes due 2023 | |||
Debt Instrument [Line Items] | |||
Total senior subordinated notes | 573,722,000 | 529,146,000 | |
Senior subordinated notes interest rate | 5.50% | ||
5.50% Senior subordinated notes due 2022 | |||
Debt Instrument [Line Items] | |||
Total senior subordinated notes | $ 700,000,000 | 700,000,000 | |
Senior subordinated notes interest rate | 5.50% | ||
9.25% Senior subordinated notes due 2019 | |||
Debt Instrument [Line Items] | |||
Total senior subordinated notes | $ 5,221,000 | ||
Senior subordinated notes interest rate | 9.25% | 9.25% |
Long-Term Debt and Other Borr49
Long-Term Debt and Other Borrowing Arrangements - Additional Information (Detail) € in Millions | Jun. 15, 2017USD ($) | May 16, 2017USD ($) | Jul. 02, 2017USD ($) | Jul. 03, 2016USD ($) | Jul. 02, 2017USD ($) | Jul. 03, 2016USD ($) | Jul. 02, 2017EUR (€) | Jul. 02, 2017USD ($) | Apr. 02, 2017 | Dec. 31, 2016USD ($) |
Debt Instrument [Line Items] | ||||||||||
Loss on debt extinguishment | $ 847,000 | $ 0 | $ 847,000 | $ 0 | ||||||
Senior subordinated notes | $ 1,700,842,000 | $ 1,643,448,000 | ||||||||
Senior Subordinated Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior subordinated notes | 1,700,800,000 | |||||||||
Fair value of debt instrument | 1,768,800,000 | |||||||||
Revolving credit agreement due 2022 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | 400,000,000 | |||||||||
Commitment fee percentage | 0.25% | |||||||||
Fixed charge coverage, minimum threshold (as a percent) | 90.00% | |||||||||
Borrowings outstanding | 0 | 0 | ||||||||
Fees incurred to creditors and third parties | $ 2,000,000 | |||||||||
Loss on debt extinguishment | $ 800,000 | |||||||||
Available borrowing capacity | 288,700,000 | |||||||||
4.125% Senior subordinated notes due 2026 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior subordinated notes interest rate | 4.125% | |||||||||
Senior subordinated notes | $ 227,120,000 | 209,081,000 | ||||||||
4.125% Senior subordinated notes due 2026 | Senior Subordinated Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount outstanding of senior subordinated notes | € | € 200 | |||||||||
Senior subordinated notes interest rate | 4.125% | 4.125% | ||||||||
5.25% Senior subordinated notes due 2024 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior subordinated notes interest rate | 5.25% | |||||||||
Senior subordinated notes | $ 200,000,000 | 200,000,000 | ||||||||
5.25% Senior subordinated notes due 2024 | Senior Subordinated Notes | ||||||||||
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 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior subordinated notes interest rate | 5.50% | |||||||||
Senior subordinated notes | $ 573,722,000 | 529,146,000 | ||||||||
5.50% Senior subordinated notes due 2023 | Senior Subordinated Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount outstanding of senior subordinated notes | € | € 500 | |||||||||
Senior subordinated notes interest rate | 5.50% | 5.50% | ||||||||
Senior subordinated notes | $ 573,700,000 | |||||||||
5.50% Senior subordinated notes due 2022 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior subordinated notes interest rate | 5.50% | |||||||||
Senior subordinated notes | 700,000,000 | $ 700,000,000 | ||||||||
5.50% Senior subordinated notes due 2022 | Senior Subordinated Notes | ||||||||||
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 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior subordinated notes interest rate | 9.25% | 9.25% | ||||||||
Senior subordinated notes | $ 5,221,000 | |||||||||
9.25% Senior subordinated notes due 2019 | Senior Subordinated Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount outstanding of senior subordinated notes | $ 0 | |||||||||
Repayments of debt | $ 5,200,000 | |||||||||
Minimum | Revolving credit agreement due 2022 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate (as a percent) | 1.25% | |||||||||
Maximum | Revolving credit agreement due 2022 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate (as a percent) | 1.75% |
Net Investment Hedge (Details)
Net Investment Hedge (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 02, 2017USD ($) | Jul. 03, 2016USD ($) | Jul. 02, 2017USD ($) | Jul. 03, 2016USD ($) | Dec. 31, 2016EUR (€) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Foreign currency translation adjustment | $ (17,107) | $ 1,094 | $ (26,943) | $ (1,093) | |
4.125% Senior subordinated notes due 2026 | Senior Subordinate Notes | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Aggregate principal amount outstanding of senior subordinated notes | € | € 200,000,000 | ||||
Foreign currency translation adjustment | $ 5,100 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | |
Operating Loss Carryforwards [Line Items] | ||||
Income tax expense (benefit) | $ 2,210 | $ (3,741) | $ 4,460 | $ (3,531) |
Effective tax rate | 5.80% | (9.80%) | 6.80% | (6.40%) |
Income tax benefit from implementing a foreign tax credit planning strategy | $ 4,100 | $ 7,500 | ||
Foreign tax benefit recognized | 4,100 | $ 8,100 | $ 7,000 | $ 8,100 |
Federal statutory income tax rate (as a percent) | 35.00% | |||
Income tax benefit from currency translation gains | $ 4,500 | $ 5,300 | ||
Deferred tax benefit recognized | 7,000 | 7,000 | ||
Income tax benefit from reducing a deferred tax valuation allowance | 3,800 | |||
Net change in reserve for uncertain tax positions | $ 2,700 | $ (2,700) | ||
GERMANY | ||||
Operating Loss Carryforwards [Line Items] | ||||
Federal statutory income tax rate (as a percent) | 28.00% | |||
CANADA | ||||
Operating Loss Carryforwards [Line Items] | ||||
Federal statutory income tax rate (as a percent) | 26.00% | |||
NETHERLANDS | ||||
Operating Loss Carryforwards [Line Items] | ||||
Federal statutory income tax rate (as a percent) | 25.00% |
Pension and Other Postretirem52
Pension and Other Postretirement Obligations - Components of Net Periodic Benefit Costs (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | |
Pension Obligations | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 1,251 | $ 1,426 | $ 2,343 | $ 2,835 |
Interest cost | 1,874 | 2,424 | 3,569 | 4,819 |
Expected return on plan assets | (2,567) | (3,216) | (4,928) | (6,408) |
Amortization of prior service credit | (9) | (9) | (20) | (18) |
Actuarial losses | 645 | 709 | 1,233 | 1,407 |
Net periodic benefit cost | 1,194 | 1,334 | 2,197 | 2,635 |
Other Postretirement Obligations | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 13 | 16 | 27 | 29 |
Interest cost | 329 | 480 | 656 | 847 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service credit | 0 | (11) | 0 | (22) |
Actuarial losses | 23 | 149 | 45 | 231 |
Net periodic benefit cost | $ 365 | $ 634 | $ 728 | $ 1,085 |
Comprehensive Income and Accu53
Comprehensive Income and Accumulated Other Comprehensive Income (Loss) - Total Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | |
Equity [Abstract] | ||||
Net income | $ 35,891 | $ 41,933 | $ 61,472 | $ 58,291 |
Foreign currency translation loss, net of $0.5 million, $0.3 million, $0.4 million, and $1.9 million tax, respectively | (17,107) | 1,094 | (26,943) | (1,093) |
Adjustments to pension and postretirement liability, net of $0.3 million, $0.3 million, $0.5 million, and $0.6 million tax, respectively | 406 | 515 | 774 | 982 |
Total comprehensive income | 19,190 | 43,542 | 35,303 | 58,180 |
Less: Comprehensive loss attributable to noncontrolling interest | (77) | (126) | (240) | (227) |
Comprehensive income attributable to Belden | 19,267 | 43,668 | 35,543 | 58,407 |
Foreign currency translation, tax income (loss) | 500 | 300 | 400 | 1,900 |
Adjustments to pension and postretirement liability, tax | $ 300 | $ 300 | $ 500 | $ 600 |
Comprehensive Income and Accu54
Comprehensive Income and Accumulated Other Comprehensive Income (Loss) - Components of Other Comprehensive Income (Loss), Net of Tax (Detail) $ in Thousands | 6 Months Ended |
Jul. 02, 2017USD ($) | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Beginning balance | $ 1,461,317 |
Other comprehensive loss, net of tax | (26,169) |
Ending balance | 1,479,103 |
Foreign Currency Translation Component | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Beginning balance | (4,661) |
Other comprehensive loss attributable to Belden before reclassifications | (26,895) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 |
Other comprehensive loss, net of tax | (26,895) |
Ending balance | (31,556) |
Pension and Other Postretirement Benefit Plans | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Beginning balance | (34,406) |
Other comprehensive loss attributable to Belden before reclassifications | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) | 774 |
Other comprehensive loss, net of tax | 774 |
Ending balance | (33,632) |
Accumulated Other Comprehensive Income (Loss) | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Beginning balance | (39,067) |
Other comprehensive loss attributable to Belden before reclassifications | (26,895) |
Amounts reclassified from accumulated other comprehensive income (loss) | 774 |
Other comprehensive loss, net of tax | (26,121) |
Ending balance | $ (65,188) |
Comprehensive Income and Accu55
Comprehensive Income and Accumulated Other Comprehensive Income (Loss) - Summary of Effects of Reclassifications from Accumulated Other Comprehensive Income (Loss) (Detail) $ in Thousands | 6 Months Ended |
Jul. 02, 2017USD ($) | |
Pension and Other Postretirement Benefit Plans | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |
Total net of tax | $ 774 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Actuarial losses [Member] | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |
Total before tax | 1,278 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Prior service credit [Member] | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |
Total before tax | 20 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Pension and Other Postretirement Benefit Plans | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |
Total before tax | 1,258 |
Tax benefit | (484) |
Total net of tax | $ (774) |
Preferred Stock (Details)
Preferred Stock (Details) $ / shares in Units, $ in Thousands | Jul. 15, 2019shares | Jul. 26, 2016USD ($)trading_day$ / sharesshares | Jul. 02, 2017USD ($) | Jul. 03, 2016USD ($) | Jul. 02, 2017USD ($) | Jul. 03, 2016USD ($) |
Class of Stock [Line Items] | ||||||
Preferred stock dividends | $ | $ 8,733 | $ 0 | $ 17,466 | $ 0 | ||
Depository Shares | ||||||
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 | ||||||
Class of Stock [Line Items] | ||||||
Percentage of issued shares | 6.75% | |||||
Offering price per share | $ / shares | $ 100 | |||||
Threshold trading day period (in trading days) | trading_day | 20 | |||||
Proceeds from offering, net | $ | $ 501,000 | |||||
Scenario, Forecast | Minimum | Six Point Seven Five Percentage Series B Mandatory Convertible Preferred Stock | ||||||
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 | Maximum | Six Point Seven Five Percentage Series B Mandatory Convertible Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock converted in to common stock | 132.50 | |||||
Number of common stock issued upon conversion | 6,900,000 |
Share Repurchases (Details)
Share Repurchases (Details) - shares | 6 Months Ended | |
Jul. 02, 2017 | May 25, 2017 | |
Text Block [Abstract] | ||
Number of shares authorized for repurchase under the share repurchase program | 200,000,000 | |
Number of shares repurchases | 0 |
Subsequent Events (Details)
Subsequent Events (Details) | Jul. 06, 2017USD ($) | Jul. 02, 2017USD ($) | Jul. 03, 2016USD ($) | Jul. 02, 2017USD ($) | Jul. 03, 2016USD ($) | Jul. 06, 2017EUR (€) | Jul. 06, 2017USD ($) | Apr. 02, 2017 |
Subsequent Event [Line Items] | ||||||||
Loss on debt extinguishment | $ 847,000 | $ 0 | $ 847,000 | $ 0 | ||||
3.375% Senior Subordinated Notes | Senior Subordinated Notes | Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Aggregate principal amount outstanding of senior subordinated notes | € 450,000,000 | $ 509,500,000 | ||||||
Senior subordinated notes interest rate | 3.375% | 3.375% | ||||||
5.50% Senior subordinated notes due 2022 | ||||||||
Subsequent Event [Line Items] | ||||||||
Senior subordinated notes interest rate | 5.50% | |||||||
5.50% Senior subordinated notes due 2022 | Senior Subordinated Notes | ||||||||
Subsequent Event [Line Items] | ||||||||
Aggregate principal amount outstanding of senior subordinated notes | $ 700,000,000 | $ 700,000,000 | ||||||
Senior subordinated notes interest rate | 5.50% | 5.50% | ||||||
5.50% Senior subordinated notes due 2022 | Senior Subordinated Notes | Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Aggregate principal amount outstanding of senior subordinated notes | $ 700,000,000 | |||||||
Senior subordinated notes interest rate | 5.50% | 5.50% | ||||||
Repayments of debt | $ 581,300,000 | |||||||
Scenario, Forecast | 5.50% Senior subordinated notes due 2022 | Senior Subordinated Notes | ||||||||
Subsequent Event [Line Items] | ||||||||
Repayments of debt | 118,700,000 | |||||||
Loss on debt extinguishment | $ 25,000,000 |