Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 03, 2016 | Jul. 29, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 3, 2016 | |
Document Fiscal Year Focus | 2,016 | |
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 Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 42,120,279 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 03, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 175,772 | $ 216,751 |
Receivables, net | 393,436 | 387,386 |
Inventories, net | 198,625 | 195,942 |
Other current assets | 51,403 | 37,079 |
Total current assets | 819,236 | 837,158 |
Property, plant and equipment, less accumulated depreciation | 314,697 | 310,629 |
Goodwill | 1,404,099 | 1,385,115 |
Intangible assets, less accumulated amortization | 614,422 | 655,871 |
Deferred income taxes | 34,747 | 34,295 |
Other long-lived assets | 67,689 | 67,534 |
Total assets | 3,254,890 | 3,290,602 |
Current liabilities: | ||
Accounts payable | 204,272 | 223,514 |
Accrued liabilities | 291,944 | 323,249 |
Current maturities of long-term debt | 2,500 | 2,500 |
Total current liabilities | 498,716 | 549,263 |
Long-term debt | 1,681,866 | 1,725,282 |
Postretirement benefits | 106,862 | 105,230 |
Deferred income taxes | 43,700 | 46,034 |
Other long-term liabilities | 39,291 | 39,270 |
Stockholders' equity: | ||
Preferred stock | ||
Common stock | 503 | 503 |
Additional paid-in capital | 609,061 | 605,660 |
Retained earnings | 733,852 | 679,716 |
Accumulated other comprehensive loss | (59,069) | (58,987) |
Treasury stock | (401,089) | (402,793) |
Total Belden stockholders' equity | 883,258 | 824,099 |
Noncontrolling interest | 1,197 | 1,424 |
Total stockholders' equity | 884,455 | 825,523 |
Total liabilities and stockholders' equity | $ 3,254,890 | $ 3,290,602 |
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. 03, 2016 | Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 | |
Income Statement [Abstract] | ||||
Revenues | $ 601,631 | $ 585,755 | $ 1,143,128 | $ 1,132,712 |
Cost of sales | (353,418) | (351,479) | (669,880) | (690,787) |
Gross profit | 248,213 | 234,276 | 473,248 | 441,925 |
Selling, general and administrative expenses | (123,057) | (127,584) | (245,463) | (267,632) |
Research and development | (36,652) | (36,632) | (72,785) | (72,831) |
Amortization of intangibles | (26,263) | (25,917) | (51,795) | (52,421) |
Operating income | 62,241 | 44,143 | 103,205 | 49,041 |
Interest expense, net | (24,049) | (24,769) | (48,445) | (48,615) |
Income from continuing operations before taxes | 38,192 | 19,374 | 54,760 | 426 |
Income tax benefit | 3,558 | 2,303 | 3,415 | 1,615 |
Income from continuing operations | 41,750 | 21,677 | 58,175 | 2,041 |
Loss from disposal of discontinued operations, net of tax | (86) | (86) | ||
Net income | 41,750 | 21,591 | 58,175 | 1,955 |
Less: Net loss attributable to noncontrolling interest | (99) | (198) | ||
Net income attributable to Belden stockholders | $ 41,849 | $ 21,591 | $ 58,373 | $ 1,955 |
Weighted average number of common shares and equivalents: | ||||
Basic | 42,085 | 42,655 | 42,046 | 42,596 |
Diluted | 42,548 | 43,233 | 42,493 | 43,224 |
Basic income per share attributable to Belden stockholders: | ||||
Continuing operations | $ 0.99 | $ 0.51 | $ 1.39 | $ 0.05 |
Discontinued operations | 0 | 0 | 0 | 0 |
Net income | 0.99 | 0.51 | 1.39 | 0.05 |
Diluted income per share attributable to Belden stockholders: | ||||
Continuing operations | 0.98 | 0.50 | 1.37 | 0.05 |
Discontinued operations | 0 | 0 | 0 | 0 |
Net income | $ 0.98 | $ 0.50 | $ 1.37 | $ 0.05 |
Comprehensive income attributable to Belden stockholders | $ 43,485 | $ 19,562 | $ 58,291 | $ 13,839 |
Dividends declared per share | $ 0.05 | $ 0.05 | $ 0.10 | $ 0.10 |
Condensed Consolidated Cash Flo
Condensed Consolidated Cash Flow Statements (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 03, 2016 | Jun. 28, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 58,175 | $ 1,955 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 75,445 | 75,654 |
Share-based compensation | 8,587 | 9,891 |
Tax benefit related to share-based compensation | (116) | (5,288) |
Changes in operating assets and liabilities, net of the effects of currency exchange rate changes and acquired businesses: | ||
Receivables | (3,750) | (6,250) |
Inventories | 368 | (11,837) |
Accounts payable | (20,730) | (43,689) |
Accrued liabilities | (39,356) | (4,363) |
Accrued taxes | (17,759) | (10,214) |
Other assets | 2,457 | (1,736) |
Other liabilities | (2,867) | 923 |
Net cash provided by operating activities | 60,454 | 5,046 |
Cash flows from investing activities: | ||
Capital expenditures | (25,124) | (27,224) |
Cash used to acquire businesses, net of cash acquired | (17,848) | (695,345) |
Proceeds from disposal of tangible assets | 41 | 80 |
Net cash used for investing activities | (42,931) | (722,489) |
Cash flows from financing activities: | ||
Payments under borrowing arrangements | (51,250) | (625) |
Cash dividends paid | (4,204) | (4,235) |
Withholding tax payments for share-based payment awards, net of proceeds from the exercise of stock options | (3,598) | (11,439) |
Borrowings under credit arrangements | 200,000 | |
Debt issuance costs paid | (643) | |
Tax benefit related to share-based compensation | 116 | 5,288 |
Net cash provided by (used for) financing activities | (58,936) | 188,346 |
Effect of foreign currency exchange rate changes on cash and cash equivalents | 434 | (3,646) |
Decrease in cash and cash equivalents | (40,979) | (532,743) |
Cash and cash equivalents, beginning of period | 216,751 | 741,162 |
Cash and cash equivalents, end of period | $ 175,772 | $ 208,419 |
Condensed Consolidated Stockhol
Condensed Consolidated Stockholders' Equity Statement (Unaudited) - 6 months ended Jul. 03, 2016 - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interest [Member] |
Beginning balance at Dec. 31, 2015 | $ 825,523 | $ 503 | $ 605,660 | $ 679,716 | $ (402,793) | $ (58,987) | $ 1,424 |
Beginning balance, Treasury shares at Dec. 31, 2015 | (8,354) | ||||||
Beginning balance, shares at Dec. 31, 2015 | 50,335 | ||||||
Net income (loss) | 58,175 | 58,373 | (198) | ||||
Foreign currency translation | (1,093) | (1,064) | (29) | ||||
Adjustments to pension and postretirement liability, net of $0.6 million tax | 982 | 982 | |||||
Other comprehensive income (loss), net of tax | (111) | (82) | |||||
Exercise of stock options, net of tax withholding forfeitures | (827) | (963) | $ 136 | ||||
Exercise of stock options, net of tax withholding forfeitures, shares | 19 | ||||||
Conversion of restricted stock units into common stock, net of tax withholding forfeitures | (2,771) | (4,339) | $ 1,568 | ||||
Conversion of restricted stock units into common stock, net of tax withholding forfeitures, shares | 111 | ||||||
Share-based compensation | 8,703 | 8,703 | |||||
Dividends ($0.10 per share) | (4,237) | (4,237) | |||||
Ending balance at Jul. 03, 2016 | $ 884,455 | $ 503 | $ 609,061 | $ 733,852 | $ (401,089) | $ (59,069) | $ 1,197 |
Ending balance, Treasury shares at Jul. 03, 2016 | (8,224) | ||||||
Ending balance, shares at Jul. 03, 2016 | 50,335 |
Condensed Consolidated Stockho6
Condensed Consolidated Stockholders' Equity Statement (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2016 | Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 | |
Statement of Stockholders' Equity [Abstract] | ||||
Foreign currency translation, tax expense (benefit) | $ 0.3 | $ (0.4) | $ (1.9) | $ 2.1 |
Adjustments to pension and postretirement liability, tax expense | $ 0.3 | $ 0.5 | $ 0.6 | $ 1.1 |
Dividends declared per share | $ 0.05 | $ 0.05 | $ 0.10 | $ 0.10 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jul. 03, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1: Summary of Significant Accounting Policies Basis of Presentation The accompanying Condensed Consolidated Financial Statements include Belden Inc. and all of its subsidiaries (the Company, us, we, or our). We eliminate all significant affiliate accounts and transactions in consolidation. The accompanying Condensed Consolidated Financial Statements presented as of any date other than December 31, 2015: ● Are prepared from the books and records without audit, and ● Are prepared in accordance with the instructions for Form 10-Q and do not include all of the information required by accounting principles generally accepted in the United States for complete statements, but ● Include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the financial statements. These Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Supplementary Data contained in our 2015 Annual Report on Form 10-K. Business Description We are an innovative signal transmission solutions provider built around five global business platforms – Broadcast Solutions, Enterprise Connectivity Solutions, Industrial Connectivity Solutions, Industrial IT Solutions, and Network Security Solutions. Our comprehensive portfolio of signal transmission solutions provides industry leading secure and reliable transmission of data, sound and video for mission critical applications. Reporting Periods Our fiscal year and fiscal fourth quarter both end on December 31. Our fiscal first quarter ends on the Sunday falling closest to 91 days after December 31, which was April 3, 2016, the 94th day of our fiscal year 2016. Our fiscal second and third quarters each have 91 days. The six months ended July 3, 2016 and June 28, 2015 included 185 and 179 days, respectively. Reclassifications We have made certain reclassifications to the 2015 Condensed Consolidated Financial Statements with no impact to reported net income in order to conform to the 2016 presentation. Fair Value Measurement Accounting guidance for fair value measurements specifies a hierarchy of valuation techniques based upon whether the inputs to those valuation techniques reflect assumptions other market participants would use based upon market data obtained from independent sources or reflect our own assumptions of market participant valuation. The hierarchy is broken down into three levels based on the reliability of the inputs as follows: ● Level 1 – Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities; ● Level 2 – Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets, or financial instruments for which significant inputs are observable, either directly or indirectly; and ● Level 3 – Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. As of and during the three and six months ended July 3, 2016 and June 28, 2015, we utilized Level 1 inputs to determine the fair value of cash equivalents. We did not have any transfers between Level 1 and Level 2 fair value measurements during the six months ended July 3, 2016 and June 28, 2015. Cash and Cash Equivalents We classify cash on hand and deposits in banks, including commercial paper, money market accounts, and other investments with an original maturity of three months or less, that we hold from time to time, as cash and cash equivalents. We periodically have cash equivalents consisting of short-term money market funds and other investments. The primary objective of our investment activities is to preserve our capital for the purpose of funding operations. We do not enter into investments for trading or speculative purposes. As of July 3, 2016, we did not have any significant cash equivalents. Contingent Liabilities We have established liabilities for environmental and legal contingencies that are probable of occurrence and reasonably estimable, the amounts of which are currently not material. We accrue environmental remediation costs based on estimates of known environmental remediation exposures developed in consultation with our environmental consultants and legal counsel. We are, from time to time, subject to routine litigation incidental to our business. These lawsuits primarily involve claims for damages arising out of the use of our products, allegations of patent or trademark infringement, and litigation and administrative proceedings involving employment matters and commercial disputes. Based on facts currently available, we believe the disposition of the claims that are pending or asserted will not have a materially adverse effect on our financial position, results of operations, or cash flow. As of July 3, 2016, we were party to standby letters of credit, bank guaranties, and surety bonds totaling $8.9 million, $2.9 million, and $2.4 million, respectively. Revenue Recognition We recognize revenue when all of the following circumstances are satisfied: (1) persuasive evidence of an arrangement exists, (2) price is fixed or determinable, (3) collectability is reasonably assured, and (4) delivery has occurred. Delivery occurs in the period in which the customer takes title and assumes the risks and rewards of ownership of the products specified in the customer’s purchase order or sales agreement. At times, we enter into arrangements that involve the delivery of multiple elements. For these arrangements, when the elements can be separated, the revenue is allocated to each deliverable based on that element’s relative selling price and recognized based on the period of delivery for each element. Generally, we determine relative selling price using our best estimate of selling price, unless we have established vendor specific objective evidence (VSOE) or third party evidence of fair value exists for such arrangements. We record revenue net of estimated rebates, price allowances, invoicing adjustments, and product returns. We record revisions to these estimates in the period in which the facts that give rise to each revision become known. We have certain products subject to the accounting guidance on software revenue recognition. For such products, software license revenue is recognized when persuasive evidence of an arrangement exists, delivery of the product has occurred, the fee is fixed or determinable, collection is probable and VSOE of the fair value of undelivered elements exists. As substantially all of the software licenses are sold in multiple-element arrangements that include either support or both support and professional services, we use the residual method to determine the amount of software license revenue to be recognized. Under the residual method, consideration is allocated to undelivered elements based upon VSOE of the fair value of those elements, with the residual of the arrangement fee allocated to and recognized as software license revenue. In our Network Security Solutions segment, we have established VSOE of the fair value of support, subscription-based software licenses and professional services. Software license revenue is generally recognized upon delivery of the software if all revenue recognition criteria are met. Revenue allocated to support services under our Network Security Solutions support contracts, subscription-based software, and remote ongoing operational services is paid in advance and recognized ratably over the term of the service. Revenue allocated to professional services, including remote implementation services, is recognized as the services are performed. Discontinued Operations In both the three and six months ended June 28, 2015, we recognized a $0.2 million ($0.1 million net of tax) loss from disposal of discontinued operations for a final escrow settlement related to the 2010 disposition of Trapeze Networks, Inc. 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 12. Current-Year Adoption of Accounting Pronouncements In April 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2015-03, Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs Pending Adoption of Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Improvements to Employee Share-Based Payment Accounting |
Acquisitions
Acquisitions | 6 Months Ended |
Jul. 03, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | Note 2: Acquisitions M2FX We acquired 100% of the shares of M2FX Limited (M2FX) on January 7, 2016 for a preliminary purchase price of $23.2 million. Of the total purchase price, $7.6 million has been preliminarily deferred as estimated earn-out consideration. The estimated earn-out is scheduled to be paid in early 2017, if certain financial targets are achieved. We determined the estimated fair value of the earn-out with the assistance of a third party valuation specialist using a probability weighted discounted cash flow model. M2FX is a manufacturer of fiber optic cable and fiber protective solutions for broadband access and telecommunications networks. M2FX is located in the United Kingdom. The results of M2FX have been included in our Consolidated Financial Statements from January 7, 2016, and are reported within the Broadcast segment. The M2FX acquisition was not material to our financial position or results of operations. |
Operating Segments
Operating Segments | 6 Months Ended |
Jul. 03, 2016 | |
Segment Reporting [Abstract] | |
Operating Segments | Note 3: Operating Segments We are organized around five global business platforms: Broadcast, Enterprise Connectivity, Industrial Connectivity, Industrial IT, and Network Security. Each of the global business platforms represents a reportable segment. To capitalize on the adoption of IP technology and accelerate our penetration of the commercial audio-video market, we transferred responsibility of audio-video cable and connectors from our Broadcast platform to our Enterprise Connectivity platform effective January 1, 2016. We have revised the prior period segment information to conform to the change in the composition of these reportable segments. This transfer had no impact to our reporting units for purposes of goodwill impairment testing. The key measures of segment profit or loss reviewed by our chief operating decision maker are Segment Revenues and Segment EBITDA. Segment Revenues represent non-affiliate revenues and include revenues that would have otherwise been recorded by acquired businesses as independent entities but were not recognized in our Consolidated Statements of Operations due to the effects of purchase accounting and the associated write-down of acquired deferred revenue to fair value. Segment EBITDA excludes certain items, including depreciation expense; amortization of intangibles; asset impairment; severance, restructuring, and acquisition integration costs; purchase accounting effects related to acquisitions, such as the adjustment of acquired inventory and deferred revenue to fair value; and other costs. We allocate corporate expenses to the segments for purposes of measuring Segment EBITDA. Corporate expenses are allocated on the basis of each segment’s relative EBITDA prior to the allocation. Our measure of segment assets does not include cash, goodwill, intangible assets, deferred tax assets, or corporate assets. All goodwill is allocated to reporting units of our segments for purposes of impairment testing. Broadcast Solutions Enterprise Industrial Industrial IT Network Total (In thousands) As of and for the three months ended July 3, 2016 Segment revenues $ 193,521 $ 160,401 $ 147,808 $ 62,510 $ 39,141 $ 603,381 Affiliate revenues 173 1,328 214 4 - 1,719 Segment EBITDA 29,505 29,575 27,064 12,676 9,515 108,335 Depreciation expense 4,061 3,429 2,709 660 1,128 11,987 Amortization expense 13,420 432 601 1,506 10,304 26,263 Severance, restructuring, and acquisition integration costs 1,319 1,207 2,371 943 29 5,869 Deferred gross profit adjustments 494 - - - 1,256 1,750 Segment assets 329,250 253,424 255,250 65,603 41,573 945,100 As of and for the three months ended June 28, 2015 Segment revenues $ 174,923 $ 161,827 $ 160,875 $ 61,270 $ 39,618 $ 598,513 Affiliate revenues - 1,708 408 10 - 2,126 Segment EBITDA 22,878 29,792 28,680 10,178 8,772 100,300 Depreciation expense 4,140 3,180 2,869 584 919 11,692 Amortization expense 12,595 429 807 1,479 10,607 25,917 Severance, restructuring, and acquisition integration costs 3,283 83 1,163 - 378 4,907 Deferred gross profit adjustments (924) - - - 14,364 13,440 Segment assets 352,848 279,360 267,448 63,599 42,241 1,005,496 As of and for the six months ended July 3, 2016 Segment revenues $ 364,793 $ 296,293 $ 288,899 $ 116,392 $ 80,804 $ 1,147,181 Affiliate revenues 597 3,027 396 32 - 4,052 Segment EBITDA 52,772 53,311 50,051 21,285 20,982 198,401 Depreciation expense 8,023 6,818 5,427 1,184 2,198 23,650 Amortization expense 26,351 861 1,192 3,016 20,375 51,795 Severance, restructuring, and acquisition integration costs 5,697 1,707 3,236 3,608 29 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 65,603 41,573 945,100 As of and for the six months ended June 28, 2015 Segment revenues $ 351,423 $ 303,608 $ 313,847 $ 122,343 $ 76,743 $ 1,167,964 Affiliate revenues - 3,680 731 31 8 4,450 Segment EBITDA 46,005 49,801 52,853 21,265 18,673 188,597 Depreciation expense 8,113 6,394 5,720 1,143 1,863 23,233 Amortization expense 25,021 861 1,630 2,889 22,020 52,421 Severance, restructuring, and acquisition integration costs 14,810 651 2,936 (52) 1,045 19,390 Purchase accounting effects of acquisitions - - 267 - 9,155 9,422 Deferred gross profit adjustments 2,370 - - - 32,728 35,098 Segment assets 352,848 279,360 267,448 63,599 42,241 1,005,496 The following table is a reconciliation of the total of the reportable segments’ Revenues and EBITDA to consolidated revenues and consolidated income from continuing operations before taxes, respectively. Three Months Ended Six Months Ended July 3, 2016 June 28, 2015 July 3, 2016 June 28, 2015 (In thousands) (In thousands) Total Segment Revenues $ 603,381 $ 598,513 $ 1,147,181 $ 1,167,964 Deferred revenue adjustments (1) (1,750) (12,758) (4,053) (35,252) Consolidated Revenues $ 601,631 $ 585,755 $ 1,143,128 $ 1,132,712 Total Segment EBITDA $ 108,335 $ 100,300 $ 198,401 $ 188,597 Amortization of intangibles (26,263) (25,917) (51,795) (52,421) Deferred gross profit adjustments (1) (1,750) (13,440) (4,053) (35,098) Severance, restructuring, and acquisition integration costs (2) (5,869) (4,907) (14,277) (19,390) Depreciation expense (11,987) (11,692) (23,650) (23,233) Purchase accounting effects related to acquisitions (3) - - (195) (9,422) Income from equity method investment 661 343 491 1,111 Eliminations (886) (544) (1,717) (1,103) Consolidated operating income 62,241 44,143 103,205 49,041 Interest expense, net (24,049) (24,769) (48,445) (48,615) Consolidated income from continuing operations before taxes $ 38,192 $ 19,374 $ 54,760 $ 426 (1) For both the three and six months ended July 3, 2016 and June 28, 2015, both our consolidated revenues and gross profit were negatively impacted by the reduction of the acquired deferred revenue balance to fair value associated with our 2015 acquisition of Tripwire. (2) See Note 7, Severance, Restructuring, and Acquisition Integration Activities, . (3) For the six months ended July 3, 2016, we recognized $0.2 million of cost of sales related to the adjustment of acquired inventory to fair value related to our acquisition of M2FX. For the six months ended June 28, 2015, we recognized $9.2 million of compensation expense related to the accelerated vesting of acquiree stock based compensation awards associated with our acquisition of Tripwire. In addition, we recognized $0.3 million of cost of sales related to the adjustment of acquired inventory to fair value related to our acquisition of Coast. |
Income per Share
Income per Share | 6 Months Ended |
Jul. 03, 2016 | |
Earnings Per Share [Abstract] | |
Income per Share | Note 4: Income per Share The following table presents the basis for the income per share computations: Three Months Ended Six Months Ended July 3, 2016 June 28, 2015 July 3, 2016 June 28, 2015 (In thousands) Numerator: Income from continuing operations $ 41,750 $ 21,677 $ 58,175 $ 2,041 Less: Net loss attributable to noncontrolling interest (99) - (198) - Income from continuing operations attributable to Belden stockholders 41,849 21,677 58,373 2,041 Loss from disposal of discontinued operations, net of tax, attributable to Belden stockholders - (86) - (86) Net income attributable to Belden stockholders $ 41,849 $ 21,591 $ 58,373 $ 1,955 Denominator: Weighted average shares outstanding, basic 42,085 42,655 42,046 42,596 Effect of dilutive common stock equivalents 463 578 447 628 Weighted average shares outstanding, diluted 42,548 43,233 42,493 43,224 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 0.6 million, because to do so would have been anti-dilutive. For the three and six months ended June 28, 2015, diluted weighted average shares outstanding do not include outstanding equity awards of 0.3 million and 0.3 million, respectively, because to do so would have been anti-dilutive. For purposes of calculating basic earnings per share, unvested restricted stock units are not included in the calculation of basic weighted average shares outstanding until all necessary conditions have been satisfied and issuance of the shares underlying the restricted stock units is no longer contingent. Necessary conditions are not satisfied until the vesting date, at which time holders of our restricted stock units receive shares of our common stock. For purposes of calculating diluted earnings per share, unvested restricted stock units are included to the extent that they are dilutive. In determining whether unvested restricted stock units are dilutive, each issuance of restricted stock units is considered separately. Once a restricted stock unit has vested, it is included in the calculation of both basic and diluted weighted average shares outstanding. |
Inventories
Inventories | 6 Months Ended |
Jul. 03, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 5: Inventories The major classes of inventories were as follows: July 3, 2016 December 31, 2015 (In thousands) Raw materials $ 93,823 $ 92,929 Work-in-process 31,304 27,730 Finished goods 97,567 97,814 Gross inventories 222,694 218,473 Excess and obsolete reserves (24,069) (22,531) Net inventories $ 198,625 $ 195,942 |
Long-Lived Assets
Long-Lived Assets | 6 Months Ended |
Jul. 03, 2016 | |
Property, Plant and Equipment [Abstract] | |
Long-Lived Assets | Note 6: Long-Lived Assets Depreciation and Amortization Expense We recognized depreciation expense of $12.0 million and $23.7 million in the three and six months ended July 3, 2016, respectively. We recognized depreciation expense of $11.7 million and $23.2 million in the three and six months ended June 28, 2015, 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. We recognized amortization expense related to our intangible assets of $25.9 million and $52.4 million in the three and six months ended June 28, 2015, respectively. |
Severance, Restructuring, and A
Severance, Restructuring, and Acquisition Integration Activities | 6 Months Ended |
Jul. 03, 2016 | |
Restructuring and Related Activities [Abstract] | |
Severance, Restructuring, and Acquisition Integration Activities | Note 7: Severance, Restructuring, and Acquisition Integration Activities Industrial Restructuring Program Both our Industrial Connectivity and Industrial IT segments have been negatively impacted by a decline in sales volume. Global demand for industrial products has been negatively impacted by the strengthened U.S. dollar and lower energy prices. Our customers have reduced capital spending in response to these conditions, and we expect these conditions to continue to negatively impact our industrial segments’ sales volume. In response to these industrial market conditions, we began to execute a restructuring program in the fourth quarter of 2015 to reduce our cost structure. We recognized $2.4 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. We expect to incur approximately $2 million of additional severance and other restructuring costs for this program, the majority of which will be incurred in the third quarter of 2016. We expect the restructuring program to generate approximately $18 million of savings on an annualized basis, which we began to realize in the first quarter of 2016. Industrial Manufacturing Footprint Program In further response to the industrial market conditions described above, in the first quarter of 2016 we began a program to further consolidate our manufacturing footprint. The manufacturing consolidation is expected to be completed by the end of 2017. We recognized $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. The costs were incurred by the Enterprise and Industrial Connectivity segments, as the manufacturing locations involved in the program serve both platforms. We expect to incur approximately $16 million and $15 million of additional severance and other restructuring costs for this program in 2016 and 2017, respectively. We expect the program to generate approximately $10 million of savings on an annualized basis, beginning in the second half of 2017. Grass Valley Restructuring Program Our Broadcast segment’s Grass Valley brand was negatively impacted by a decline in global demand of broadcast technology infrastructure products. Outside of the U.S., demand for these products was impacted by the relative price increase of products due to the strengthened U.S. dollar as well as the impact of weaker economic conditions which have resulted in lower capital spending. Within the U.S., demand for these products was impacted by deferred capital spending. We believe broadcast customers have deferred their capital spending as they navigate through a number of important industry transitions and a changing media landscape. In response to these broadcast market conditions, we began to execute a restructuring program beginning in the third quarter of 2015 to further reduce our cost structure. We recognized $0.9 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 expect to incur approximately $1 million of additional severance and other restructuring costs for this program, the majority of which will be incurred in the third quarter of 2016. We expect the restructuring program to generate approximately $30 million of savings on an annualized basis, which we began to realize in the fourth quarter of 2015. Productivity Improvement Program and Acquisition Integration In 2014, we began a productivity improvement program and the integration of our acquisition of Grass Valley. The productivity improvement program focused on improving the productivity of our sales, marketing, finance, and human resources functions relative to our peers. The majority of the costs for the productivity improvement program related to the Industrial Connectivity, Enterprise, and Industrial IT segments. The restructuring and integration activities related to our acquisition of Grass Valley focused on achieving desired cost savings by consolidating existing and acquired operating facilities and other support functions. We substantially completed the productivity improvement program and the acquisition integration activities in 2015. In the three and six months ended June 28, 2015, we recorded severance, restructuring, and integration costs of $4.9 million and $19.4 million, respectively, related to these two significant programs, as well as other cost reduction actions and the integration of our acquisitions of ProSoft, Coast, and Tripwire. In the three and six months ended July 3, 2016, we recognized $0.6 million and $1.0 million of costs, respectively, primarily related to our 2016 acquisition of M2FX. The following table summarizes the costs by segment of the various programs described above: Three Months Ended July 3, 2016 Severance Other and Integration Costs Total Costs (In thousands) Broadcast Solutions $ (109) $ 1,428 $ 1,319 Enterprise Connectivity Solutions 71 1,136 1,207 Industrial Connectivity Solutions 1,180 1,191 2,371 Industrial IT Solutions 309 634 943 Network Security Solutions - 29 29 Total $ 1,451 $ 4,418 $ 5,869 Three Months Ended June 28, 2015 Broadcast Solutions $ (1,590) $ 4,873 $ 3,283 Enterprise Connectivity Solutions 22 61 83 Industrial Connectivity Solutions 526 637 1,163 Industrial IT Solutions - - - Network Security Solutions - 378 378 Total $ (1,042) $ 5,949 $ 4,907 Six Months Ended July 3, 2016 Broadcast Solutions $ (751) $ 6,448 $ 5,697 Enterprise Connectivity Solutions 76 1,631 1,707 Industrial Connectivity Solutions 1,777 1,459 3,236 Industrial IT Solutions 2,631 977 3,608 Network Security Solutions - 29 29 Total $ 3,733 $ 10,544 $ 14,277 Six Months Ended June 28, 2015 Broadcast Solutions $ 713 $ 14,097 $ 14,810 Enterprise Connectivity Solutions 72 579 651 Industrial Connectivity Solutions 967 1,969 2,936 Industrial IT Solutions (740) 688 (52) Network Security Solutions - 1,045 1,045 Total $ 1,012 $ 18,378 $ 19,390 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 three months ended June 28, 2015, $1.8 million, $2.7 million, and $0.4 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 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. Of the total severance, restructuring, and acquisition integration costs recognized in the six months ended June 28, 2015, $3.2 million, $14.5 million, and $1.7 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 equipment transfer, costs to consolidate operating and support facilities, retention bonuses, relocation, travel, legal, and other costs. The majority of the other restructuring and integration costs related to these actions were paid as incurred or are payable within the next 60 days. We continue to review our business strategies and evaluate potential new restructuring actions. This could result in additional restructuring costs in future periods. Accrued Severance The table below sets forth the significant severance activity that occurred for two of the programs described above. The balances are included in accrued liabilities. Grass Valley Industrial (In thousands) Balance at December 31, 2015 $ 12,076 $ 2,947 New charges 886 2,919 Cash payments (4,404) (1,967) Foreign currency translation 167 94 Other adjustments (1,528) - Balance at April 3, 2016 $ 7,197 $ 3,993 New charges 251 1,489 Cash payments (3,356) (1,685) Foreign currency translation (13) (42) Other adjustments (360) - Balance at July 3, 2016 $ 3,719 $ 3,755 The other adjustments were the result of changes in estimates. We experienced higher than expected voluntary turnover, and as a result, certain approved severance actions were not taken. We expect the majority of the liabilities for these programs to be paid during the second half of 2016. |
Long-Term Debt and Other Borrow
Long-Term Debt and Other Borrowing Arrangements | 6 Months Ended |
Jul. 03, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Other Borrowing Arrangements | Note 8: Long-Term Debt and Other Borrowing Arrangements The carrying values of our long-term debt and other borrowing arrangements were as follows: July 3, 2016 December 31, 2015 (In thousands) Revolving credit agreement due 2018 $ - $ 50,000 Variable rate term loan due 2020 242,754 243,965 Senior subordinated notes: 5.25% Senior subordinated notes due 2024 200,000 200,000 5.50% Senior subordinated notes due 2023 559,709 553,835 5.50% Senior subordinated notes due 2022 700,000 700,000 9.25% Senior subordinated notes due 2019 5,221 5,221 Total senior subordinated notes 1,464,930 1,459,056 Total gross debt and other borrowing arrangements 1,707,684 1,753,021 Less unamortized debt issuance costs (23,318) (25,239) Total net debt and other borrowing arrangements 1,684,366 1,727,782 Less current maturities of Term Loan (2,500) (2,500) Long-term debt $ 1,681,866 $ 1,725,282 Revolving Credit Agreement due 2018 Our revolving credit agreement provides a $400 million multi-currency asset-based revolving credit facility (the Revolver). The borrowing base under the Revolver includes eligible accounts receivable; inventory; and property, plant and equipment of certain of our subsidiaries in the U.S., Canada, Germany, the Netherlands, and the UK. In January 2015, we borrowed $200.0 million under the Revolver in order to fund a portion of the purchase price for the acquisition of Tripwire. During the fourth quarter of 2015 and first quarter of 2016, we repaid $150.0 million and $50.0 million, respectively, of the Revolver borrowings. As of July 3, 2016, we had no borrowings outstanding on our revolver, and our available borrowing capacity was $293.7 million. The Revolver matures in 2018. Interest on outstanding borrowings is variable, based upon LIBOR or other similar indices in foreign jurisdictions, plus a spread that ranges from 1.25% - 1.75%, depending upon our leverage position. We pay a commitment fee on our available borrowing capacity of 0.375%. In the event we borrow more than 90% of our borrowing base, we are subject to a fixed charge coverage ratio covenant. Variable Rate Term Loan due 2020 In 2013, we borrowed $250.0 million under a Term Loan Credit Agreement (the Term Loan). The Term Loan is secured on a second lien basis by the assets securing the Revolving Credit Agreement due 2018 discussed above and on a first lien basis by the stock of certain of our subsidiaries. The borrowings under the Term Loan are scheduled to mature in 2020 and require quarterly amortization payments of approximately $0.6 million. Interest under the Term Loan is variable, based upon the three-month LIBOR plus an applicable spread. The interest rate as of July 3, 2016 was 3.41%. Senior Subordinated Notes We have outstanding $200.0 million aggregate principal amount of 5.25% senior subordinated notes due 2024 (the 2024 Notes). The 2024 Notes are guaranteed on a senior subordinated basis by certain of our subsidiaries. The 2024 Notes rank equal in right of payment with our senior subordinated notes due 2023, 2022, and 2019 and with any future subordinated debt, and they are subordinated to all of our senior debt and the senior debt of our subsidiary guarantors, including our Term Loan and Revolver. Interest is payable semiannually on January 15 and July 15 of each year. We have outstanding €500.0 million aggregate principal amount of 5.5% senior subordinated notes due 2023 (the 2023 Notes). The carrying value of the 2023 Notes as of July 3, 2016 is $559.7 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 2024, 2022, and 2019 and with any future subordinated debt, and they are subordinated to all of our senior debt and the senior debt of our subsidiary guarantors, including our Term Loan and Revolver. Interest is payable semiannually on April 15 and October 15 of each year. We have outstanding $700.0 million aggregate principal amount of 5.5% senior subordinated notes due 2022 (the 2022 Notes). The 2022 Notes are guaranteed on a senior subordinated basis by certain of our subsidiaries. The 2022 Notes rank equal in right of payment with our senior subordinated notes due 2024, 2023, and 2019, and with any future subordinated debt, and they are subordinated to all of our senior debt and the senior debt of our subsidiary guarantors, including our Term Loan and Revolver. Interest is payable semiannually on March 1 and September 1 of each year. We have outstanding $5.2 million aggregate principal amount of our senior subordinated notes due 2019 (the 2019 Notes). The 2019 Notes have a coupon interest rate of 9.25% and an effective interest rate of 9.75%. The interest on the 2019 Notes is payable semiannually on June 15 and December 15. The 2019 notes are guaranteed on a senior subordinated basis by certain of our subsidiaries. The notes rank equal in right of payment with our senior subordinated notes due 2024, 2023, and 2022, and with any future senior subordinated debt, and are subordinated to all of our senior debt and the senior debt of our subsidiary guarantors, including our Term Loan and Revolver. Fair Value of Long-Term Debt The fair value of our senior subordinated notes as of July 3, 2016 was approximately $1,478.6 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 $1,464.9 million as of July 3, 2016. We believe the fair value of our Term Loan approximates book value. |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 03, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9: Income Taxes We recognized income tax benefits of $3.6 million and $3.4 million for the three and six months ended July 3, 2016, respectively, representing effective tax rates of (9.3%) and (6.2%), 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. We recognized income tax benefits of $2.3 million and $1.6 million for the three and six months ended June 28, 2015, respectively, representing effective tax rates of (11.9%) and (379.1%), respectively. A significant factor impacting the income tax benefit for the six months ended June 28, 2015 was the recognition of a $1.5 million tax benefit as a result of reducing a deferred tax asset valuation allowance related to a capital loss carryforward. Based on transactions in the six months ended June 28, 2015, the capital loss carryforward became fully realizable. In addition, our effective tax rate in 2015 benefited from a tax planning strategy that allowed us to recognize a significant balance of foreign tax credits related to one of our foreign jurisdictions. |
Pension and Other Postretiremen
Pension and Other Postretirement Obligations | 6 Months Ended |
Jul. 03, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Obligations | Note 10: 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 3, 2016 June 28, 2015 July 3, 2016 June 28, 2015 (In thousands) Service cost $ 1,426 $ 1,443 $ 16 $ 16 Interest cost 2,424 2,207 480 399 Expected return on plan assets (3,216) (3,159) - - Amortization of prior service credit (9) (15) (11) (25) Actuarial losses 709 1,288 149 123 Net periodic benefit cost $ 1,334 $ 1,764 $ 634 $ 513 Six Months Ended Service cost $ 2,835 $ 3,227 $ 29 $ 32 Interest cost 4,819 4,747 847 802 Expected return on plan assets (6,408) (6,313) - - Amortization of prior service credit (18) (26) (22) (50) Actuarial losses 1,407 2,574 231 252 Net periodic benefit cost $ 2,635 $ 4,209 $ 1,085 $ 1,036 |
Comprehensive Income and Accumu
Comprehensive Income and Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jul. 03, 2016 | |
Equity [Abstract] | |
Comprehensive Income and Accumulated Other Comprehensive Income (Loss) | Note 11: Comprehensive Income and Accumulated Other Comprehensive Income (Loss) The following table summarizes total comprehensive income: Three Months Ended Six Months Ended July 3, 2016 June 28, 2015 July 3, 2016 June 28, 2015 (In thousands) Net income $ 41,750 $ 21,591 $ 58,175 $ 1,955 Foreign currency translation income (loss), net of $0.3 million, $0.4 million, $1.9 million, and $2.1 million tax, respectively 1,094 (2,872) (1,093) 10,193 Adjustments to pension and postretirement liability, net of $0.3 million, $0.5 million, $0.6 million, and $1.1 million tax, respectively 515 843 982 1,691 Total comprehensive income $ 43,359 $ 19,562 $ 58,064 $ 13,839 Less: Comprehensive loss attributable to noncontrolling interest (126) - (227) - Comprehensive income attributable to Belden stockholders $ 43,485 $ 19,562 $ 58,291 $ 13,839 The accumulated balances related to each component of other comprehensive income (loss), net of tax, are as follows: Foreign Currency Pension and Other Benefit Plans Accumulated (In thousands) Balance at December 31, 2015 $ (23,411) $ (35,576) $ (58,987) Other comprehensive loss attributable to Belden stockholders before reclassifications (1,064) - (1,064) Amounts reclassified from accumulated other comprehensive income (loss) - 982 982 Net current period other comprehensive loss attributable to Belden stockholders (1,064) 982 (82) Balance at July 3, 2016 $ (24,475) $ (34,594) $ (59,069) The following table summarizes the effects of reclassifications from accumulated other comprehensive income (loss) for the six months ended July 3, 2016: Amount Reclassified from Affected Line Item in the of Operations and (In thousands) Amortization of pension and other postretirement benefit plan items: Actuarial losses $ 1,638 (1) Prior service credit (40) (1) Total before tax 1,598 Tax benefit (616) Net of tax $ 982 (1) The amortization of these accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit costs (see Note 10). |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jul. 03, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 12: Subsequent Events On July 26, 2016, we completed an offering of 5.2 million depositary shares, each of which represents 1/100 th nd |
Summary of Significant Accoun19
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jul. 03, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying Condensed Consolidated Financial Statements include Belden Inc. and all of its subsidiaries (the Company, us, we, or our). We eliminate all significant affiliate accounts and transactions in consolidation. The accompanying Condensed Consolidated Financial Statements presented as of any date other than December 31, 2015: ● Are prepared from the books and records without audit, and ● Are prepared in accordance with the instructions for Form 10-Q and do not include all of the information required by accounting principles generally accepted in the United States for complete statements, but ● Include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the financial statements. These Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Supplementary Data contained in our 2015 Annual Report on Form 10-K. |
Business Description | Business Description We are an innovative signal transmission solutions provider built around five global business platforms – Broadcast Solutions, Enterprise Connectivity Solutions, Industrial Connectivity Solutions, Industrial IT Solutions, and Network Security Solutions. Our comprehensive portfolio of signal transmission solutions provides industry leading secure and reliable transmission of data, sound and video for mission critical applications. |
Reporting Periods | Reporting Periods Our fiscal year and fiscal fourth quarter both end on December 31. Our fiscal first quarter ends on the Sunday falling closest to 91 days after December 31, which was April 3, 2016, the 94th day of our fiscal year 2016. Our fiscal second and third quarters each have 91 days. The six months ended July 3, 2016 and June 28, 2015 included 185 and 179 days, respectively. |
Reclassifications | Reclassifications We have made certain reclassifications to the 2015 Condensed Consolidated Financial Statements with no impact to reported net income in order to conform to the 2016 presentation. |
Fair Value Measurement | Fair Value Measurement Accounting guidance for fair value measurements specifies a hierarchy of valuation techniques based upon whether the inputs to those valuation techniques reflect assumptions other market participants would use based upon market data obtained from independent sources or reflect our own assumptions of market participant valuation. The hierarchy is broken down into three levels based on the reliability of the inputs as follows: ● Level 1 – Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities; ● Level 2 – Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets, or financial instruments for which significant inputs are observable, either directly or indirectly; and ● Level 3 – Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. As of and during the three and six months ended July 3, 2016 and June 28, 2015, we utilized Level 1 inputs to determine the fair value of cash equivalents. We did not have any transfers between Level 1 and Level 2 fair value measurements during the six months ended July 3, 2016 and June 28, 2015. |
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 3, 2016, we did not have any significant cash equivalents. |
Contingent Liabilities | Contingent Liabilities We have established liabilities for environmental and legal contingencies that are probable of occurrence and reasonably estimable, the amounts of which are currently not material. We accrue environmental remediation costs based on estimates of known environmental remediation exposures developed in consultation with our environmental consultants and legal counsel. We are, from time to time, subject to routine litigation incidental to our business. These lawsuits primarily involve claims for damages arising out of the use of our products, allegations of patent or trademark infringement, and litigation and administrative proceedings involving employment matters and commercial disputes. Based on facts currently available, we believe the disposition of the claims that are pending or asserted will not have a materially adverse effect on our financial position, results of operations, or cash flow. As of July 3, 2016, we were party to standby letters of credit, bank guaranties, and surety bonds totaling $8.9 million, $2.9 million, and $2.4 million, respectively. |
Revenue Recognition | Revenue Recognition We recognize revenue when all of the following circumstances are satisfied: (1) persuasive evidence of an arrangement exists, (2) price is fixed or determinable, (3) collectability is reasonably assured, and (4) delivery has occurred. Delivery occurs in the period in which the customer takes title and assumes the risks and rewards of ownership of the products specified in the customer’s purchase order or sales agreement. At times, we enter into arrangements that involve the delivery of multiple elements. For these arrangements, when the elements can be separated, the revenue is allocated to each deliverable based on that element’s relative selling price and recognized based on the period of delivery for each element. Generally, we determine relative selling price using our best estimate of selling price, unless we have established vendor specific objective evidence (VSOE) or third party evidence of fair value exists for such arrangements. We record revenue net of estimated rebates, price allowances, invoicing adjustments, and product returns. We record revisions to these estimates in the period in which the facts that give rise to each revision become known. We have certain products subject to the accounting guidance on software revenue recognition. For such products, software license revenue is recognized when persuasive evidence of an arrangement exists, delivery of the product has occurred, the fee is fixed or determinable, collection is probable and VSOE of the fair value of undelivered elements exists. As substantially all of the software licenses are sold in multiple-element arrangements that include either support or both support and professional services, we use the residual method to determine the amount of software license revenue to be recognized. Under the residual method, consideration is allocated to undelivered elements based upon VSOE of the fair value of those elements, with the residual of the arrangement fee allocated to and recognized as software license revenue. In our Network Security Solutions segment, we have established VSOE of the fair value of support, subscription-based software licenses and professional services. Software license revenue is generally recognized upon delivery of the software if all revenue recognition criteria are met. Revenue allocated to support services under our Network Security Solutions support contracts, subscription-based software, and remote ongoing operational services is paid in advance and recognized ratably over the term of the service. Revenue allocated to professional services, including remote implementation services, is recognized as the services are performed. |
Discontinued Operations | Discontinued Operations In both the three and six months ended June 28, 2015, we recognized a $0.2 million ($0.1 million net of tax) loss from disposal of discontinued operations for a final escrow settlement related to the 2010 disposition of Trapeze Networks, Inc. |
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. See Note 12. |
Recent Accounting Pronouncements | Current-Year Adoption of Accounting Pronouncements In April 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2015-03, Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs |
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 In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Improvements to Employee Share-Based Payment Accounting |
Operating Segments (Tables)
Operating Segments (Tables) | 6 Months Ended |
Jul. 03, 2016 | |
Segment Reporting [Abstract] | |
Operating Segment Information | All goodwill is allocated to reporting units of our segments for purposes of impairment testing. Broadcast Solutions Enterprise Industrial Industrial IT Network Total (In thousands) As of and for the three months ended July 3, 2016 Segment revenues $ 193,521 $ 160,401 $ 147,808 $ 62,510 $ 39,141 $ 603,381 Affiliate revenues 173 1,328 214 4 - 1,719 Segment EBITDA 29,505 29,575 27,064 12,676 9,515 108,335 Depreciation expense 4,061 3,429 2,709 660 1,128 11,987 Amortization expense 13,420 432 601 1,506 10,304 26,263 Severance, restructuring, and acquisition integration costs 1,319 1,207 2,371 943 29 5,869 Deferred gross profit adjustments 494 - - - 1,256 1,750 Segment assets 329,250 253,424 255,250 65,603 41,573 945,100 As of and for the three months ended June 28, 2015 Segment revenues $ 174,923 $ 161,827 $ 160,875 $ 61,270 $ 39,618 $ 598,513 Affiliate revenues - 1,708 408 10 - 2,126 Segment EBITDA 22,878 29,792 28,680 10,178 8,772 100,300 Depreciation expense 4,140 3,180 2,869 584 919 11,692 Amortization expense 12,595 429 807 1,479 10,607 25,917 Severance, restructuring, and acquisition integration costs 3,283 83 1,163 - 378 4,907 Deferred gross profit adjustments (924) - - - 14,364 13,440 Segment assets 352,848 279,360 267,448 63,599 42,241 1,005,496 As of and for the six months ended July 3, 2016 Segment revenues $ 364,793 $ 296,293 $ 288,899 $ 116,392 $ 80,804 $ 1,147,181 Affiliate revenues 597 3,027 396 32 - 4,052 Segment EBITDA 52,772 53,311 50,051 21,285 20,982 198,401 Depreciation expense 8,023 6,818 5,427 1,184 2,198 23,650 Amortization expense 26,351 861 1,192 3,016 20,375 51,795 Severance, restructuring, and acquisition integration costs 5,697 1,707 3,236 3,608 29 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 65,603 41,573 945,100 As of and for the six months ended June 28, 2015 Segment revenues $ 351,423 $ 303,608 $ 313,847 $ 122,343 $ 76,743 $ 1,167,964 Affiliate revenues - 3,680 731 31 8 4,450 Segment EBITDA 46,005 49,801 52,853 21,265 18,673 188,597 Depreciation expense 8,113 6,394 5,720 1,143 1,863 23,233 Amortization expense 25,021 861 1,630 2,889 22,020 52,421 Severance, restructuring, and acquisition integration costs 14,810 651 2,936 (52) 1,045 19,390 Purchase accounting effects of acquisitions - - 267 - 9,155 9,422 Deferred gross profit adjustments 2,370 - - - 32,728 35,098 Segment assets 352,848 279,360 267,448 63,599 42,241 1,005,496 |
Reconciliation of Total Reportable Segments' Revenues and EBITDA to Consolidated Revenues and Consolidated Income from Continuing Operations Before Taxes | The following table is a reconciliation of the total of the reportable segments’ Revenues and EBITDA to consolidated revenues and consolidated income from continuing operations before taxes, respectively. Three Months Ended Six Months Ended July 3, 2016 June 28, 2015 July 3, 2016 June 28, 2015 (In thousands) (In thousands) Total Segment Revenues $ 603,381 $ 598,513 $ 1,147,181 $ 1,167,964 Deferred revenue adjustments (1) (1,750) (12,758) (4,053) (35,252) Consolidated Revenues $ 601,631 $ 585,755 $ 1,143,128 $ 1,132,712 Total Segment EBITDA $ 108,335 $ 100,300 $ 198,401 $ 188,597 Amortization of intangibles (26,263) (25,917) (51,795) (52,421) Deferred gross profit adjustments (1) (1,750) (13,440) (4,053) (35,098) Severance, restructuring, and acquisition integration costs (2) (5,869) (4,907) (14,277) (19,390) Depreciation expense (11,987) (11,692) (23,650) (23,233) Purchase accounting effects related to acquisitions (3) - - (195) (9,422) Income from equity method investment 661 343 491 1,111 Eliminations (886) (544) (1,717) (1,103) Consolidated operating income 62,241 44,143 103,205 49,041 Interest expense, net (24,049) (24,769) (48,445) (48,615) Consolidated income from continuing operations before taxes $ 38,192 $ 19,374 $ 54,760 $ 426 (1) For both the three and six months ended July 3, 2016 and June 28, 2015, both our consolidated revenues and gross profit were negatively impacted by the reduction of the acquired deferred revenue balance to fair value associated with our 2015 acquisition of Tripwire. (2) See Note 7, Severance, Restructuring, and Acquisition Integration Activities, . (3) For the six months ended July 3, 2016, we recognized $0.2 million of cost of sales related to the adjustment of acquired inventory to fair value related to our acquisition of M2FX. For the six months ended June 28, 2015, we recognized $9.2 million of compensation expense related to the accelerated vesting of acquiree stock based compensation awards associated with our acquisition of Tripwire. In addition, we recognized $0.3 million of cost of sales related to the adjustment of acquired inventory to fair value related to our acquisition of Coast. |
Income per Share (Tables)
Income per Share (Tables) | 6 Months Ended |
Jul. 03, 2016 | |
Earnings Per Share [Abstract] | |
Basis for Income Per Share Computations | The following table presents the basis for the income per share computations: Three Months Ended Six Months Ended July 3, 2016 June 28, 2015 July 3, 2016 June 28, 2015 (In thousands) Numerator: Income from continuing operations $ 41,750 $ 21,677 $ 58,175 $ 2,041 Less: Net loss attributable to noncontrolling interest (99) - (198) - Income from continuing operations attributable to Belden stockholders 41,849 21,677 58,373 2,041 Loss from disposal of discontinued operations, net of tax, attributable to Belden stockholders - (86) - (86) Net income attributable to Belden stockholders $ 41,849 $ 21,591 $ 58,373 $ 1,955 Denominator: Weighted average shares outstanding, basic 42,085 42,655 42,046 42,596 Effect of dilutive common stock equivalents 463 578 447 628 Weighted average shares outstanding, diluted 42,548 43,233 42,493 43,224 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jul. 03, 2016 | |
Inventory Disclosure [Abstract] | |
Major Classes of Inventories | The major classes of inventories were as follows: July 3, 2016 December 31, 2015 (In thousands) Raw materials $ 93,823 $ 92,929 Work-in-process 31,304 27,730 Finished goods 97,567 97,814 Gross inventories 222,694 218,473 Excess and obsolete reserves (24,069) (22,531) Net inventories $ 198,625 $ 195,942 |
Severance, Restructuring, and23
Severance, Restructuring, and Acquisition Integration Activities (Tables) | 6 Months Ended |
Jul. 03, 2016 | |
Restructuring and Related Activities [Abstract] | |
Severance, Restructuring and Integration Costs by Segment | The following table summarizes the costs by segment of the various programs described above: Three Months Ended July 3, 2016 Severance Other and Integration Costs Total Costs (In thousands) Broadcast Solutions $ (109) $ 1,428 $ 1,319 Enterprise Connectivity Solutions 71 1,136 1,207 Industrial Connectivity Solutions 1,180 1,191 2,371 Industrial IT Solutions 309 634 943 Network Security Solutions - 29 29 Total $ 1,451 $ 4,418 $ 5,869 Three Months Ended June 28, 2015 Broadcast Solutions $ (1,590) $ 4,873 $ 3,283 Enterprise Connectivity Solutions 22 61 83 Industrial Connectivity Solutions 526 637 1,163 Industrial IT Solutions - - - Network Security Solutions - 378 378 Total $ (1,042) $ 5,949 $ 4,907 Six Months Ended July 3, 2016 Broadcast Solutions $ (751) $ 6,448 $ 5,697 Enterprise Connectivity Solutions 76 1,631 1,707 Industrial Connectivity Solutions 1,777 1,459 3,236 Industrial IT Solutions 2,631 977 3,608 Network Security Solutions - 29 29 Total $ 3,733 $ 10,544 $ 14,277 Six Months Ended June 28, 2015 Broadcast Solutions $ 713 $ 14,097 $ 14,810 Enterprise Connectivity Solutions 72 579 651 Industrial Connectivity Solutions 967 1,969 2,936 Industrial IT Solutions (740) 688 (52) Network Security Solutions - 1,045 1,045 Total $ 1,012 $ 18,378 $ 19,390 |
Summary of Significant Severance Activity | The table below sets forth the significant severance activity that occurred for two of the programs described above. The balances are included in accrued liabilities. Grass Valley Industrial (In thousands) Balance at December 31, 2015 $ 12,076 $ 2,947 New charges 886 2,919 Cash payments (4,404) (1,967) Foreign currency translation 167 94 Other adjustments (1,528) - Balance at April 3, 2016 $ 7,197 $ 3,993 New charges 251 1,489 Cash payments (3,356) (1,685) Foreign currency translation (13) (42) Other adjustments (360) - Balance at July 3, 2016 $ 3,719 $ 3,755 |
Long-Term Debt and Other Borr24
Long-Term Debt and Other Borrowing Arrangements (Tables) | 6 Months Ended |
Jul. 03, 2016 | |
Debt Disclosure [Abstract] | |
Carrying Values of Long-Term Debt and Other Borrowing Arrangements | The carrying values of our long-term debt and other borrowing arrangements were as follows: July 3, 2016 December 31, 2015 (In thousands) Revolving credit agreement due 2018 $ - $ 50,000 Variable rate term loan due 2020 242,754 243,965 Senior subordinated notes: 5.25% Senior subordinated notes due 2024 200,000 200,000 5.50% Senior subordinated notes due 2023 559,709 553,835 5.50% Senior subordinated notes due 2022 700,000 700,000 9.25% Senior subordinated notes due 2019 5,221 5,221 Total senior subordinated notes 1,464,930 1,459,056 Total gross debt and other borrowing arrangements 1,707,684 1,753,021 Less unamortized debt issuance costs (23,318) (25,239) Total net debt and other borrowing arrangements 1,684,366 1,727,782 Less current maturities of Term Loan (2,500) (2,500) Long-term debt $ 1,681,866 $ 1,725,282 |
Pension and Other Postretirem25
Pension and Other Postretirement Obligations (Tables) | 6 Months Ended |
Jul. 03, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of Net Periodic Benefit Costs | The following table provides the components of net periodic benefit costs for our pension and other postretirement benefit plans: Pension Obligations Other Postretirement Obligations Three Months Ended July 3, 2016 June 28, 2015 July 3, 2016 June 28, 2015 (In thousands) Service cost $ 1,426 $ 1,443 $ 16 $ 16 Interest cost 2,424 2,207 480 399 Expected return on plan assets (3,216) (3,159) - - Amortization of prior service credit (9) (15) (11) (25) Actuarial losses 709 1,288 149 123 Net periodic benefit cost $ 1,334 $ 1,764 $ 634 $ 513 Six Months Ended Service cost $ 2,835 $ 3,227 $ 29 $ 32 Interest cost 4,819 4,747 847 802 Expected return on plan assets (6,408) (6,313) - - Amortization of prior service credit (18) (26) (22) (50) Actuarial losses 1,407 2,574 231 252 Net periodic benefit cost $ 2,635 $ 4,209 $ 1,085 $ 1,036 |
Comprehensive Income and Accu26
Comprehensive Income and Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jul. 03, 2016 | |
Equity [Abstract] | |
Total Comprehensive Income | The following table summarizes total comprehensive income: Three Months Ended Six Months Ended July 3, 2016 June 28, 2015 July 3, 2016 June 28, 2015 (In thousands) Net income $ 41,750 $ 21,591 $ 58,175 $ 1,955 Foreign currency translation income (loss), net of $0.3 million, $0.4 million, $1.9 million, and $2.1 million tax, respectively 1,094 (2,872) (1,093) 10,193 Adjustments to pension and postretirement liability, net of $0.3 million, $0.5 million, $0.6 million, and $1.1 million tax, respectively 515 843 982 1,691 Total comprehensive income $ 43,359 $ 19,562 $ 58,064 $ 13,839 Less: Comprehensive loss attributable to noncontrolling interest (126) - (227) - Comprehensive income attributable to Belden stockholders $ 43,485 $ 19,562 $ 58,291 $ 13,839 |
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 Pension and Other Benefit Plans Accumulated (In thousands) Balance at December 31, 2015 $ (23,411) $ (35,576) $ (58,987) Other comprehensive loss attributable to Belden stockholders before reclassifications (1,064) - (1,064) Amounts reclassified from accumulated other comprehensive income (loss) - 982 982 Net current period other comprehensive loss attributable to Belden stockholders (1,064) 982 (82) Balance at July 3, 2016 $ (24,475) $ (34,594) $ (59,069) |
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 3, 2016: Amount Reclassified from Affected Line Item in the of Operations and (In thousands) Amortization of pension and other postretirement benefit plan items: Actuarial losses $ 1,638 (1) Prior service credit (40) (1) Total before tax 1,598 Tax benefit (616) Net of tax $ 982 (1) The amortization of these accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit costs (see Note 10). |
Summary of Significant Accoun27
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 | Dec. 31, 2015 | |
Significant Accounting Policies [Line Items] | ||||
Fair value measurements, transfers between Level 1 and Level 2 | $ 0 | $ 0 | $ 0 | |
Original maturity period of cash and cash equivalents | Three months or less | |||
Gain/(Loss) on disposal of discontinued operations, net of tax | (86,000) | (86,000) | ||
Trapeze [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Gain/(Loss) on disposal of discontinued operations, before income tax | (200,000) | (200,000) | ||
Gain/(Loss) on disposal of discontinued operations, net of tax | $ (100,000) | $ (100,000) | ||
Current Assets [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Decrease in value of assets and liabilities due to adoption of ASU | $ 6,000,000 | |||
Long-Term Debt [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Decrease in value of assets and liabilities due to adoption of ASU | 25,200,000 | |||
Other Long-Lived Assets [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Decrease in value of assets and liabilities due to adoption of ASU | $ 19,200,000 | |||
Standby Letters of Credit [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Loss contingency, range of possible loss, portion not accrued | $ 8,900,000 | |||
Bank Guaranties [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Loss contingency, range of possible loss, portion not accrued | 2,900,000 | |||
Surety Bonds [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Loss contingency, range of possible loss, portion not accrued | $ 2,400,000 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - M2FX Limited [Member] $ in Millions | Jan. 07, 2016USD ($) |
Business Acquisition [Line Items] | |
Percentage of outstanding shares acquired | 100.00% |
Acquisition price | $ 23.2 |
Estimated earn out consideration | $ 7.6 |
Operating Segments and Geograph
Operating Segments and Geographic Information - Additional Information (Detail) | 6 Months Ended |
Jul. 03, 2016Segment | |
Segment Reporting [Abstract] | |
Number of global business platforms | 5 |
Operating Segments and Geogra30
Operating Segments and Geographic Information - Operating Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 03, 2016 | Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||
Segment revenues | $ 601,631 | $ 585,755 | $ 1,143,128 | $ 1,132,712 | |
Depreciation expense | 12,000 | 11,700 | 23,700 | 23,200 | |
Amortization expense | 26,263 | 25,917 | 51,795 | 52,421 | |
Severance, restructuring, and acquisition integration costs | 5,869 | 4,907 | 14,277 | 19,390 | |
Segment assets | 3,254,890 | 3,254,890 | $ 3,290,602 | ||
Broadcast Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Severance, restructuring, and acquisition integration costs | 1,319 | 3,283 | 5,697 | 14,810 | |
Enterprise Connectivity Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Severance, restructuring, and acquisition integration costs | 1,207 | 83 | 1,707 | 651 | |
Industrial Connectivity Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Severance, restructuring, and acquisition integration costs | 2,371 | 1,163 | 3,236 | 2,936 | |
Network Security Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Severance, restructuring, and acquisition integration costs | 29 | 378 | 29 | 1,045 | |
Reportable Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenues | 603,381 | 598,513 | 1,147,181 | 1,167,964 | |
Affiliate revenues | 1,719 | 2,126 | 4,052 | 4,450 | |
Segment EBITDA | 108,335 | 100,300 | 198,401 | 188,597 | |
Depreciation expense | 11,987 | 11,692 | 23,650 | 23,233 | |
Amortization expense | 26,263 | 25,917 | 51,795 | 52,421 | |
Severance, restructuring, and acquisition integration costs | 5,869 | 4,907 | 14,277 | 19,390 | |
Purchase accounting effects of acquisitions | 195 | 9,422 | |||
Deferred gross profit adjustments | 1,750 | 13,440 | 4,053 | 35,098 | |
Segment assets | 945,100 | 1,005,496 | 945,100 | 1,005,496 | |
Reportable Segment [Member] | Broadcast Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenues | 193,521 | 174,923 | 364,793 | 351,423 | |
Affiliate revenues | 173 | 597 | |||
Segment EBITDA | 29,505 | 22,878 | 52,772 | 46,005 | |
Depreciation expense | 4,061 | 4,140 | 8,023 | 8,113 | |
Amortization expense | 13,420 | 12,595 | 26,351 | 25,021 | |
Severance, restructuring, and acquisition integration costs | 1,319 | 3,283 | 5,697 | 14,810 | |
Purchase accounting effects of acquisitions | 195 | ||||
Deferred gross profit adjustments | 494 | (924) | 1,108 | 2,370 | |
Segment assets | 329,250 | 352,848 | 329,250 | 352,848 | |
Reportable Segment [Member] | Enterprise Connectivity Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenues | 160,401 | 161,827 | 296,293 | 303,608 | |
Affiliate revenues | 1,328 | 1,708 | 3,027 | 3,680 | |
Segment EBITDA | 29,575 | 29,792 | 53,311 | 49,801 | |
Depreciation expense | 3,429 | 3,180 | 6,818 | 6,394 | |
Amortization expense | 432 | 429 | 861 | 861 | |
Severance, restructuring, and acquisition integration costs | 1,207 | 83 | 1,707 | 651 | |
Segment assets | 253,424 | 279,360 | 253,424 | 279,360 | |
Reportable Segment [Member] | Industrial Connectivity Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenues | 147,808 | 160,875 | 288,899 | 313,847 | |
Affiliate revenues | 214 | 408 | 396 | 731 | |
Segment EBITDA | 27,064 | 28,680 | 50,051 | 52,853 | |
Depreciation expense | 2,709 | 2,869 | 5,427 | 5,720 | |
Amortization expense | 601 | 807 | 1,192 | 1,630 | |
Severance, restructuring, and acquisition integration costs | 2,371 | 1,163 | 3,236 | 2,936 | |
Purchase accounting effects of acquisitions | 267 | ||||
Segment assets | 255,250 | 267,448 | 255,250 | 267,448 | |
Reportable Segment [Member] | Industrial IT Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenues | 62,510 | 61,270 | 116,392 | 122,343 | |
Affiliate revenues | 4 | 10 | 32 | 31 | |
Segment EBITDA | 12,676 | 10,178 | 21,285 | 21,265 | |
Depreciation expense | 660 | 584 | 1,184 | 1,143 | |
Amortization expense | 1,506 | 1,479 | 3,016 | 2,889 | |
Severance, restructuring, and acquisition integration costs | 943 | 3,608 | (52) | ||
Segment assets | 65,603 | 63,599 | 65,603 | 63,599 | |
Reportable Segment [Member] | Network Security Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenues | 39,141 | 39,618 | 80,804 | 76,743 | |
Affiliate revenues | 8 | ||||
Segment EBITDA | 9,515 | 8,772 | 20,982 | 18,673 | |
Depreciation expense | 1,128 | 919 | 2,198 | 1,863 | |
Amortization expense | 10,304 | 10,607 | 20,375 | 22,020 | |
Severance, restructuring, and acquisition integration costs | 29 | 378 | 29 | 1,045 | |
Purchase accounting effects of acquisitions | 9,155 | ||||
Deferred gross profit adjustments | 1,256 | 14,364 | 2,945 | 32,728 | |
Segment assets | $ 41,573 | $ 42,241 | $ 41,573 | $ 42,241 |
Operating Segments and Geogra31
Operating Segments and Geographic Information - 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. 03, 2016 | Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Consolidated Revenues | $ 601,631 | $ 585,755 | $ 1,143,128 | $ 1,132,712 |
Amortization of intangibles | (26,263) | (25,917) | (51,795) | (52,421) |
Severance, restructuring, and acquisition integration costs | (5,869) | (4,907) | (14,277) | (19,390) |
Depreciation expense | (12,000) | (11,700) | (23,700) | (23,200) |
Consolidated operating income | 62,241 | 44,143 | 103,205 | 49,041 |
Interest expense, net | (24,049) | (24,769) | (48,445) | (48,615) |
Consolidated income from continuing operations before taxes | 38,192 | 19,374 | 54,760 | 426 |
Reportable Segment [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Consolidated Revenues | 603,381 | 598,513 | 1,147,181 | 1,167,964 |
Deferred revenue adjustments | (1,750) | (12,758) | (4,053) | (35,252) |
Total Segment EBITDA | 108,335 | 100,300 | 198,401 | 188,597 |
Amortization of intangibles | (26,263) | (25,917) | (51,795) | (52,421) |
Deferred gross profit adjustments | (1,750) | (13,440) | (4,053) | (35,098) |
Severance, restructuring, and acquisition integration costs | (5,869) | (4,907) | (14,277) | (19,390) |
Depreciation expense | (11,987) | (11,692) | (23,650) | (23,233) |
Purchase accounting effects related to acquisitions | (195) | (9,422) | ||
Income from equity method investment | 661 | 343 | 491 | 1,111 |
Eliminations [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Consolidated operating income | $ (886) | $ (544) | $ (1,717) | $ (1,103) |
Operating Segments and Geogra32
Operating Segments and Geographic Information - Reconciliation of Total Reportable Segments' Revenues and EBITDA to Consolidated Revenues and Consolidated Income from Continuing Operations Before Taxes (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2016 | Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Cost of sales related to adjustment of acquired inventory | $ 353,418 | $ 351,479 | $ 669,880 | $ 690,787 |
Tripwire [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Compensation expense | 9,200 | |||
Coast Wire And Plastic Tech [Member] | Fair Value Adjustment to Inventory [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Cost of sales related to adjustment of acquired inventory | $ 300 | |||
M2FX Limited [Member] | Fair Value Adjustment to Inventory [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Cost of sales related to adjustment of acquired inventory | $ 200 |
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. 03, 2016 | Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 | |
Earnings Per Share [Abstract] | ||||
Income from continuing operations | $ 41,750 | $ 21,677 | $ 58,175 | $ 2,041 |
Less: Net loss attributable to noncontrolling interest | (99) | (198) | ||
Income from continuing operations attributable to Belden stockholders | 41,849 | 21,677 | 58,373 | 2,041 |
Loss from disposal of discontinued operations, net of tax, attributable to Belden stockholders | (86) | (86) | ||
Net income attributable to Belden stockholders | $ 41,849 | $ 21,591 | $ 58,373 | $ 1,955 |
Weighted average shares outstanding, basic | 42,085 | 42,655 | 42,046 | 42,596 |
Effect of dilutive common stock equivalents | 463 | 578 | 447 | 628 |
Weighted average shares outstanding, diluted | 42,548 | 43,233 | 42,493 | 43,224 |
Income Per Share - Additional I
Income Per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2016 | Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 | |
Earnings Per Share [Abstract] | ||||
Anti-dilutive shares excluded from diluted weighted average shares outstanding | 0.7 | 0.3 | 0.6 | 0.3 |
Inventories - Major Classes of
Inventories - Major Classes of Inventories (Detail) - USD ($) $ in Thousands | Jul. 03, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 93,823 | $ 92,929 |
Work-in-process | 31,304 | 27,730 |
Finished goods | 97,567 | 97,814 |
Gross inventories | 222,694 | 218,473 |
Excess and obsolete reserves | (24,069) | (22,531) |
Net inventories | $ 198,625 | $ 195,942 |
Long-Lived Assets - Additional
Long-Lived Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2016 | Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 12,000 | $ 11,700 | $ 23,700 | $ 23,200 |
Amortization of intangible assets | $ 26,263 | $ 25,917 | $ 51,795 | $ 52,421 |
Severance, Restructuring and Ac
Severance, Restructuring and Acquisition Integration Activities - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||||
Oct. 02, 2016 | Jul. 03, 2016 | Apr. 03, 2016 | Dec. 31, 2015 | Jun. 28, 2015 | Jul. 02, 2017 | Jul. 03, 2016 | Jun. 28, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||||||||||
Severance, restructuring, and acquisition integration costs | $ 5,869 | $ 4,907 | $ 14,277 | $ 19,390 | ||||||
Cost of Sales [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Severance, restructuring, and acquisition integration costs | 1,800 | 1,800 | 3,900 | 3,200 | ||||||
Selling, General and Administrative Expenses [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Severance, restructuring, and acquisition integration costs | 3,600 | 2,700 | 9,700 | 14,500 | ||||||
Research and Development [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Severance, restructuring, and acquisition integration costs | 500 | 400 | 700 | 1,700 | ||||||
Grass Valley Restructuring Program [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Severance, restructuring, and acquisition integration costs | 900 | 5,000 | ||||||||
Savings from the restructuring program | $ 30,000 | |||||||||
Grass Valley Restructuring Program [Member] | Scenario, Forecast [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Estimated severance charges and other restructuring costs | $ 1,000 | |||||||||
Productivity Improvement Program and Acquisition Integration [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Severance, restructuring, and acquisition integration costs | $ 4,900 | $ 19,400 | ||||||||
Productivity Improvement Program and Acquisition Integration [Member] | M2FX Limited [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Severance, restructuring, and acquisition integration costs | 600 | 1,000 | ||||||||
Industrial Restructuring Program [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Severance, restructuring, and acquisition integration costs | 2,400 | 5,800 | ||||||||
Expected savings from the restructuring program | $ 18,000 | |||||||||
Industrial Restructuring Program [Member] | Scenario, Forecast [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Additional severance and other restructuring costs | $ 2,000 | |||||||||
Industrial Manufacturing Footprint Program [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Severance, restructuring, and acquisition integration costs | $ 2,000 | $ 2,500 | ||||||||
Industrial Manufacturing Footprint Program [Member] | Scenario, Forecast [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Additional severance and other restructuring costs | $ 15,000 | $ 16,000 | ||||||||
Expected savings from the restructuring program | $ 10,000 | |||||||||
Maximum [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and integration cost payable period | 60 days |
Severance, Restructuring and 38
Severance, Restructuring and Acquisition Integration Activities - Severance, Restructuring and Integration Costs by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2016 | Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||||
Total Costs | $ 5,869 | $ 4,907 | $ 14,277 | $ 19,390 |
Broadcast Solutions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total Costs | 1,319 | 3,283 | 5,697 | 14,810 |
Enterprise Connectivity Solutions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total Costs | 1,207 | 83 | 1,707 | 651 |
Industrial Connectivity Solutions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total Costs | 2,371 | 1,163 | 3,236 | 2,936 |
Industrial IT Segment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total Costs | 943 | 3,608 | (52) | |
Network Security Solutions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total Costs | 29 | 378 | 29 | 1,045 |
Employee Severance [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance | 1,451 | (1,042) | 3,733 | 1,012 |
Employee Severance [Member] | Broadcast Solutions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance | (109) | (1,590) | (751) | 713 |
Employee Severance [Member] | Enterprise Connectivity Solutions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance | 71 | 22 | 76 | 72 |
Employee Severance [Member] | Industrial Connectivity Solutions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance | 1,180 | 526 | 1,777 | 967 |
Employee Severance [Member] | Industrial IT Segment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance | 309 | 2,631 | (740) | |
Other Than Severance Costs Restructuring and Integration Costs Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Restructuring and Integration Costs | 4,418 | 5,949 | 10,544 | 18,378 |
Other Than Severance Costs Restructuring and Integration Costs Member] | Broadcast Solutions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Restructuring and Integration Costs | 1,428 | 4,873 | 6,448 | 14,097 |
Other Than Severance Costs Restructuring and Integration Costs Member] | Enterprise Connectivity Solutions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Restructuring and Integration Costs | 1,136 | 61 | 1,631 | 579 |
Other Than Severance Costs Restructuring and Integration Costs Member] | Industrial Connectivity Solutions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Restructuring and Integration Costs | 1,191 | 637 | 1,459 | 1,969 |
Other Than Severance Costs Restructuring and Integration Costs Member] | Industrial IT Segment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Restructuring and Integration Costs | 634 | 977 | 688 | |
Other Than Severance Costs Restructuring and Integration Costs Member] | Network Security Solutions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Restructuring and Integration Costs | $ 29 | $ 378 | $ 29 | $ 1,045 |
Severance, Restructuring and 39
Severance, Restructuring and Acquisition Integration Activities - Summary of Significant Severance Activity (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 03, 2016 | Apr. 03, 2016 | Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 | |
Restructuring Cost and Reserve [Line Items] | |||||
Severance, restructuring, and acquisition integration costs | $ 5,869 | $ 4,907 | $ 14,277 | $ 19,390 | |
Grass Valley Restructuring Program [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Severance, restructuring, and acquisition integration costs | 900 | 5,000 | |||
Industrial Restructuring Program [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Severance, restructuring, and acquisition integration costs | 2,400 | 5,800 | |||
Employee Severance [Member] | Grass Valley Restructuring Program [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Beginning balance | 7,197 | $ 12,076 | 12,076 | ||
Severance, restructuring, and acquisition integration costs | 251 | 886 | |||
Cash payments | (3,356) | (4,404) | |||
Foreign currency translation | (13) | 167 | |||
Other adjustments | (360) | (1,528) | |||
Ending balance | 3,719 | 7,197 | 3,719 | ||
Employee Severance [Member] | Industrial Restructuring Program [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Beginning balance | 3,993 | 2,947 | 2,947 | ||
Severance, restructuring, and acquisition integration costs | 1,489 | 2,919 | |||
Cash payments | (1,685) | (1,967) | |||
Foreign currency translation | (42) | 94 | |||
Ending balance | $ 3,755 | $ 3,993 | $ 3,755 |
Long-Term Debt and Other Borr40
Long-Term Debt and Other Borrowing Arrangements - Carrying Values of Long-Term Debt and Other Borrowing Arrangements (Detail) - USD ($) $ in Thousands | Jul. 03, 2016 | Dec. 31, 2015 | Jan. 02, 2015 |
Debt Instrument [Line Items] | |||
Senior subordinated notes | $ 1,464,930 | $ 1,459,056 | |
Total gross debt and other borrowing arrangements | 1,707,684 | 1,753,021 | |
Less unamortized debt issuance costs | (23,318) | (25,239) | |
Total net debt and other borrowing arrangements | 1,684,366 | 1,727,782 | |
Total net debt and other borrowing arrangements | 1,684,366 | 1,727,782 | |
Less current maturities of Term Loan | (2,500) | (2,500) | |
Long-term debt | 1,681,866 | 1,725,282 | |
Revolving Credit Agreement Mature 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Revolving credit agreement | 50,000 | $ 200,000 | |
Variable Term loan Due 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Long term debt | 242,754 | 243,965 | |
5.25% Senior Subordinated Notes Due 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Senior subordinated notes | 200,000 | 200,000 | |
5.50% Senior subordinated notes due 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Senior subordinated notes | 559,709 | 553,835 | |
5.50% Senior subordinated notes due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Senior subordinated notes | 700,000 | 700,000 | |
9.25% Senior Subordinated Notes Due 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Senior subordinated notes | $ 5,221 | $ 5,221 |
Long-Term Debt and Other Borr41
Long-Term Debt and Other Borrowing Arrangements - Carrying Values of Long-Term Debt and Other Borrowing Arrangements (Parenthetical) (Detail) | 6 Months Ended | 12 Months Ended |
Jul. 03, 2016 | Dec. 31, 2015 | |
Revolving Credit Agreement Mature 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Revolving credit agreement, maturity | 2,018 | 2,018 |
Variable Term loan Due 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt, maturity | 2,020 | 2,020 |
5.25% Senior Subordinated Notes Due 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Senior subordinated notes maturity year | 2,024 | 2,024 |
Senior subordinated notes interest rate | 5.25% | 5.25% |
5.50% Senior subordinated notes due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Senior subordinated notes maturity year | 2,023 | 2,023 |
Senior subordinated notes interest rate | 5.50% | 5.50% |
5.50% Senior subordinated notes due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Senior subordinated notes maturity year | 2,022 | 2,022 |
Senior subordinated notes interest rate | 5.50% | 5.50% |
9.25% Senior Subordinated Notes Due 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Senior subordinated notes maturity year | 2,019 | 2,019 |
Senior subordinated notes interest rate | 9.25% | 9.25% |
Long-Term Debt and Other Borr42
Long-Term Debt and Other Borrowing Arrangements - Additional Information (Detail) € in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Apr. 03, 2016USD ($) | Dec. 31, 2015USD ($) | Jul. 03, 2016USD ($) | Jun. 28, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2013USD ($) | Jul. 03, 2016EUR (€) | Jan. 02, 2015USD ($) | |
Debt Instrument [Line Items] | ||||||||
Term Loan | $ 200,000,000 | |||||||
Senior subordinated notes | $ 1,459,056,000 | $ 1,464,930,000 | $ 1,459,056,000 | |||||
Senior Subordinated Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Fair value of debt instrument | $ 1,478,600,000 | |||||||
Variable Term loan Due 2020 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Description of variable rate basis | Three-month LIBOR plus an applicable spread. | |||||||
Term Loan | $ 250,000,000 | |||||||
Long term debt, maturity | 2,020 | 2,020 | ||||||
Frequency of interest payments | Quarterly amortization payments | |||||||
Quarterly amortization payments | $ 600,000 | |||||||
Effective interest rate of senior subordinated notes | 3.41% | 3.41% | ||||||
5.25% Senior Subordinated Notes Due 2024 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior subordinated notes interest rate | 5.25% | 5.25% | 5.25% | 5.25% | ||||
Senior subordinated notes maturity year | 2,024 | 2,024 | ||||||
Senior subordinated notes | $ 200,000,000 | $ 200,000,000 | $ 200,000,000 | |||||
5.25% Senior Subordinated Notes Due 2024 [Member] | Senior Subordinate Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Frequency of interest payments | Semiannually | |||||||
Aggregate principal amount outstanding of senior subordinated notes | $ 200,000,000 | |||||||
Senior subordinated notes interest rate | 5.25% | 5.25% | ||||||
Senior subordinated notes maturity year | 2,024 | |||||||
Senior Subordinated Notes; description of priority | The 2024 Notes rank equal in right of payment with our senior subordinated notes due 2023, 2022, and 2019 and with any future subordinated debt, and they are subordinated to all of our senior debt and the senior debt of our subsidiary guarantors, including our Term Loan and Revolver. | |||||||
Senior Subordinated Notes; guarantees by subsidiaries | The 2024 Notes are guaranteed on a senior subordinated basis by certain of our subsidiaries. | |||||||
5.5% Senior Subordinated Notes Due 2023 [Member] | Senior Subordinate Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Frequency of interest payments | Semiannually | |||||||
Aggregate principal amount outstanding of senior subordinated notes | € | € 500 | |||||||
Senior subordinated notes interest rate | 5.50% | 5.50% | ||||||
Senior subordinated notes maturity year | 2,023 | |||||||
Senior Subordinated Notes; description of priority | The 2023 Notes are guaranteed on a senior subordinated basis by certain of our subsidiaries. The notes rank equal in right of payment with our senior subordinated notes due 2024, 2022, and 2019 and with any future subordinated debt, and they are subordinated to all of our senior debt and the senior debt of our subsidiary guarantors, including our Term Loan and Revolver. | |||||||
Senior Subordinated Notes; guarantees by subsidiaries | The 2023 Notes are guaranteed on a senior subordinated basis by certain of our subsidiaries. | |||||||
Senior subordinated notes | $ 559,700,000 | |||||||
5.5% Senior Subordinated Notes Due 2022 [Member] | Senior Subordinate Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Frequency of interest payments | Semiannually | |||||||
Aggregate principal amount outstanding of senior subordinated notes | $ 700,000,000 | |||||||
Senior subordinated notes interest rate | 5.50% | 5.50% | ||||||
Senior subordinated notes maturity year | 2,022 | |||||||
Senior Subordinated Notes; description of priority | The 2022 Notes are guaranteed on a senior subordinated basis by certain of our subsidiaries. The 2022 Notes rank equal in right of payment with our senior subordinated notes due 2024, 2023, and 2019, and with any future subordinated debt, and they are subordinated to all of our senior debt and the senior debt of our subsidiary guarantors, including our Term Loan and Revolver. | |||||||
Senior Subordinated Notes; guarantees by subsidiaries | The 2022 Notes are guaranteed on a senior subordinated basis by certain of our subsidiaries. | |||||||
9.25% Senior Subordinated Notes Due 2019 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Frequency of interest payments | Semiannually | |||||||
Effective interest rate of senior subordinated notes | 9.75% | 9.75% | ||||||
Aggregate principal amount outstanding of senior subordinated notes | $ 5,200,000 | |||||||
Senior subordinated notes interest rate | 9.25% | 9.25% | 9.25% | 9.25% | ||||
Senior subordinated notes maturity year | 2,019 | 2,019 | ||||||
Senior Subordinated Notes; description of priority | The notes rank equal in right of payment with our senior subordinated notes due 2024, 2023, and 2022, and with any future senior subordinated debt, and are subordinated to all of our senior debt and the senior debt of our subsidiary guarantors, including our Term Loan and Revolver. | |||||||
Senior Subordinated Notes; guarantees by subsidiaries | The 2019 notes are guaranteed on a senior subordinated basis by certain of our subsidiaries. | |||||||
Senior subordinated notes | $ 5,221,000 | $ 5,221,000 | $ 5,221,000 | |||||
Revolving Credit Agreement Mature 2018 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowing under line of credit facility | $ 400,000,000 | |||||||
Revolving credit agreement | 50,000,000 | $ 50,000,000 | $ 200,000,000 | |||||
Revolving credit agreement, maturity | 2,018 | 2,018 | ||||||
Line of credit borrowing base | $ 293,700,000 | |||||||
Description of variable rate basis | LIBOR or other similar indices in foreign jurisdictions | |||||||
Line of credit commitment fees | 0.375% | |||||||
Line of credit facility description | In the event we borrow more than 90% of our borrowing base, we are subject to a fixed charge coverage ratio covenant. | |||||||
Revolving credit facility restrictive covenants fixed charge coverage ratio minimum threshold | 90.00% | |||||||
Line of credit repayments made | $ 50,000,000 | $ 150,000,000 | ||||||
Revolving Credit Agreement Mature 2018 [Member] | Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit spread on variable rate | 1.25% | |||||||
Revolving Credit Agreement Mature 2018 [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit spread on variable rate | 1.75% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2016 | Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 | |
Income tax benefit | $ 3,558 | $ 2,303 | $ 3,415 | $ 1,615 |
Effective tax rate | (9.30%) | (11.90%) | (6.20%) | (379.10%) |
Foreign tax benefit recognized | $ 8,100 | $ 8,100 | ||
Deferred tax benefit recognized | 7,000 | 7,000 | ||
Income tax benefit due to changes in the valuation allowance | (3,800) | $ 1,500 | ||
Foreign Tax Authority [Member] | ||||
Net change in reserve for uncertain tax positions | $ 2,700 | $ 2,700 |
Pension and Other Postretirem44
Pension and Other Postretirement Obligations - Components of Net Periodic Benefit Costs (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2016 | Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 | |
Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 1,426 | $ 1,443 | $ 2,835 | $ 3,227 |
Interest cost | 2,424 | 2,207 | 4,819 | 4,747 |
Expected return on plan assets | (3,216) | (3,159) | (6,408) | (6,313) |
Amortization of prior service credit | (9) | (15) | (18) | (26) |
Actuarial losses | 709 | 1,288 | 1,407 | 2,574 |
Net periodic benefit cost | 1,334 | 1,764 | 2,635 | 4,209 |
Other Postretirement Obligations [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 16 | 16 | 29 | 32 |
Interest cost | 480 | 399 | 847 | 802 |
Amortization of prior service credit | (11) | (25) | (22) | (50) |
Actuarial losses | 149 | 123 | 231 | 252 |
Net periodic benefit cost | $ 634 | $ 513 | $ 1,085 | $ 1,036 |
Comprehensive Income and Accu45
Comprehensive Income and Accumulated Other Comprehensive Income (Loss) - Total Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2016 | Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 | |
Equity [Abstract] | ||||
Net income | $ 41,750 | $ 21,591 | $ 58,175 | $ 1,955 |
Foreign currency translation income (loss), net of $0.3 million, $0.4 million, $1.9 million, and $2.1 million tax, respectively | 1,094 | (2,872) | (1,093) | 10,193 |
Adjustments to pension and postretirement liability, net of $0.3 million, $0.5 million, $0.6 million, and $1.1 million tax, respectively | 515 | 843 | 982 | 1,691 |
Total comprehensive income | 43,359 | 19,562 | 58,064 | 13,839 |
Less: Comprehensive loss attributable to noncontrolling interest | (126) | (227) | ||
Comprehensive income attributable to Belden stockholders | $ 43,485 | $ 19,562 | $ 58,291 | $ 13,839 |
Comprehensive Income and Accu46
Comprehensive Income and Accumulated Other Comprehensive Income (Loss) - Total Comprehensive Income (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2016 | Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 | |
Equity [Abstract] | ||||
Foreign currency translation, tax income (loss) | $ 0.3 | $ (0.4) | $ (1.9) | $ 2.1 |
Adjustments to pension and postretirement liability, tax | $ 0.3 | $ 0.5 | $ 0.6 | $ 1.1 |
Comprehensive Income and Accu47
Comprehensive Income and Accumulated Other Comprehensive Income (Loss) - Components of Other Comprehensive Income (Loss), Net of Tax (Detail) $ in Thousands | 6 Months Ended |
Jul. 03, 2016USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Accumulated other comprehensive income (loss), Beginning balance | $ (58,987) |
Other comprehensive income (loss), net of tax | (111) |
Accumulated other comprehensive income (loss), Ending balance | (59,069) |
Foreign Currency Translation Component [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Accumulated other comprehensive income (loss), Beginning balance | (23,411) |
Other comprehensive loss before reclassifications | (1,064) |
Other comprehensive income (loss), net of tax | (1,064) |
Accumulated other comprehensive income (loss), Ending balance | (24,475) |
Pension and Other Postretirement Benefit Plans [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Accumulated other comprehensive income (loss), Beginning balance | (35,576) |
Amounts reclassified from accumulated other comprehensive income (loss) | 982 |
Other comprehensive income (loss), net of tax | 982 |
Accumulated other comprehensive income (loss), Ending balance | (34,594) |
Accumulated Other Comprehensive Income (Loss) [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Accumulated other comprehensive income (loss), Beginning balance | (58,987) |
Other comprehensive loss before reclassifications | (1,064) |
Amounts reclassified from accumulated other comprehensive income (loss) | 982 |
Other comprehensive income (loss), net of tax | (82) |
Accumulated other comprehensive income (loss), Ending balance | $ (59,069) |
Comprehensive Income and Accu48
Comprehensive Income and Accumulated Other Comprehensive Income (Loss) - Summary of Effects of Reclassifications from Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2016 | Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 | |
Amortization of pension and other postretirement benefit plan items: | ||||
Net of tax | $ 515 | $ 843 | $ 982 | $ 1,691 |
Pension and Other Postretirement Benefit Plans [Member] | Reclassified from Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Amortization of pension and other postretirement benefit plan items: | ||||
Actuarial losses | 1,638 | |||
Prior service credit | (40) | |||
Total before tax | 1,598 | |||
Tax benefit | (616) | |||
Net of tax | $ 982 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - 6.75% Series B Mandatory Convertible Preferred Stock [Member] - USD ($) $ / shares in Units, $ in Millions | Jul. 15, 2019 | Jul. 26, 2016 |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Depository shares issued | 5,200,000 | |
Percentage of issued shares | 6.75% | |
Offering price per share | $ 100 | |
Proceeds from offering, net | $ 502 | |
Scenario, Forecast [Member] | Minimum [Member] | ||
Subsequent Event [Line Items] | ||
Preferred stock converted in to common stock | 120.46 | |
Number of common stock issued upon conversion | 6,200,000 | |
Scenario, Forecast [Member] | Maximum [Member] | ||
Subsequent Event [Line Items] | ||
Preferred stock converted in to common stock | 132.50 | |
Number of common stock issued upon conversion | 6,900,000 |