Delaware | 39-1434669 | |
(State or other jurisdiction of | (I.R.S. Employer | |
incorporation or organization) | Identification No.) |
221 West Philadelphia Street, York, PA | 17405-0872 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer x | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o |
Page | ||
Three Months Ended March 31, | |||||||
2012 | 2011 | ||||||
Net sales | $ | 716,413 | $ | 570,503 | |||
Cost of products sold | 323,663 | 270,519 | |||||
Gross profit | 392,750 | 299,984 | |||||
Selling, general and administrative expenses | 304,353 | 200,767 | |||||
Restructuring and other costs | 1,237 | 633 | |||||
Operating income | 87,160 | 98,584 | |||||
Other income and expenses: | |||||||
Interest expense | 15,782 | 6,343 | |||||
Interest income | (2,297 | ) | (1,828 | ) | |||
Other expense (income), net | 484 | 70 | |||||
Income before income taxes | 73,191 | 93,999 | |||||
Provision for income taxes | 14,715 | 23,712 | |||||
Equity in net loss of unconsolidated affiliated company | (4,248 | ) | (824 | ) | |||
Net income | 54,228 | 69,463 | |||||
Less: Net income attributable to noncontrolling interests | 944 | 379 | |||||
Net income attributable to DENTSPLY International | $ | 53,284 | $ | 69,084 | |||
Earnings per common share: | |||||||
Basic | $ | 0.38 | $ | 0.49 | |||
Diluted | $ | 0.37 | $ | 0.48 | |||
Weighted average common shares outstanding: | |||||||
Basic | 141,721 | 141,614 | |||||
Diluted | 143,984 | 144,044 |
Three Months Ended March 31, | |||||||
2012 | 2011 | ||||||
Net income | $ | 54,228 | $ | 69,463 | |||
Other comprehensive income (loss), net of tax: | |||||||
Foreign currency translation adjustments | 133,471 | 90,716 | |||||
Net loss on derivative financial instruments | (32,132 | ) | (27,012 | ) | |||
Net unrealized holding gain on available-for-sale securities | 23,000 | 4,202 | |||||
Pension liability adjustments | (60 | ) | (533 | ) | |||
Total other comprehensive income (loss) | 124,279 | 67,373 | |||||
Total comprehensive income | 178,507 | 136,836 | |||||
Less: Comprehensive income attributable | |||||||
to noncontrolling interests | 2,284 | 3,643 | |||||
Comprehensive income attributable to | |||||||
DENTSPLY International | $ | 176,223 | $ | 133,193 | |||
March 31, 2012 | December 31, 2011 | ||||||
Assets | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 67,346 | $ | 77,128 | |||
Accounts and notes receivables-trade, net | 461,352 | 427,709 | |||||
Inventories, net | 403,052 | 361,762 | |||||
Prepaid expenses and other current assets | 187,435 | 146,304 | |||||
Total Current Assets | 1,119,185 | 1,012,903 | |||||
Property, plant and equipment, net | 604,160 | 591,445 | |||||
Identifiable intangible assets, net | 998,538 | 791,100 | |||||
Goodwill, net | 2,109,451 | 2,190,063 | |||||
Other noncurrent assets, net | 183,727 | 169,887 | |||||
Total Assets | $ | 5,015,061 | $ | 4,755,398 | |||
Liabilities and Equity | |||||||
Current Liabilities: | |||||||
Accounts payable | $ | 163,419 | $ | 149,117 | |||
Accrued liabilities | 323,845 | 289,201 | |||||
Income taxes payable | 19,182 | 9,054 | |||||
Notes payable and current portion of long-term debt | 288,037 | 276,701 | |||||
Total Current Liabilities | 794,483 | 724,073 | |||||
Long-term debt | 1,481,217 | 1,490,010 | |||||
Deferred income taxes | 321,362 | 249,822 | |||||
Other noncurrent liabilities | 371,024 | 407,342 | |||||
Total Liabilities | 2,968,086 | 2,871,247 | |||||
Commitments and contingencies | |||||||
Equity: | |||||||
Preferred stock, $.01 par value; .25 million shares authorized; no shares issued | — | — | |||||
Common stock, $.01 par value; 200.0 million shares authorized; 162.7 million and 162.8 million shares issued at March 31, 2012 and December 31, 2011, respectively. | 1,628 | 1,628 | |||||
Capital in excess of par value | 224,841 | 229,687 | |||||
Retained earnings | 2,581,134 | 2,535,709 | |||||
Accumulated other comprehensive loss | (68,031 | ) | (190,970 | ) | |||
Treasury stock, at cost, 21.0 million and 21.1 million shares at March 31, 2012 and December 31, 2011, respectively. | (730,955 | ) | (727,977 | ) | |||
Total DENTSPLY International Equity | 2,008,617 | 1,848,077 | |||||
Noncontrolling interests | 38,358 | 36,074 | |||||
Total Equity | 2,046,975 | 1,884,151 | |||||
Total Liabilities and Equity | $ | 5,015,061 | $ | 4,755,398 |
Three Months Ended March 31, | |||||||
2012 | 2011 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 54,228 | $ | 69,463 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation | 20,209 | 15,200 | |||||
Amortization | 15,364 | 2,379 | |||||
Amortization of deferred financing costs | 1,196 | — | |||||
Deferred income taxes | 3,690 | 1,220 | |||||
Share-based compensation expense | 4,222 | 4,668 | |||||
Restructuring and other costs - noncash | 1,165 | — | |||||
Stock option income tax benefit | (3,879 | ) | (4,371 | ) | |||
Net interest expense on derivatives with an other-than-insignificant financing element | 800 | 723 | |||||
Equity in earnings from unconsolidated affiliates | 4,248 | 824 | |||||
Other non-cash expense | 1,079 | 1,082 | |||||
Changes in operating assets and liabilities, net of acquisitions: | |||||||
Accounts and notes receivable-trade, net | (25,597 | ) | (28,706 | ) | |||
Inventories, net | (34,006 | ) | (14,727 | ) | |||
Prepaid expenses and other current assets | (24,072 | ) | (5,745 | ) | |||
Other noncurrent assets, net | 15,954 | 1,123 | |||||
Accounts payable | 11,528 | 5,569 | |||||
Accrued liabilities | (21,186 | ) | (15,861 | ) | |||
Income taxes payable | 10,545 | 11,516 | |||||
Other noncurrent liabilities | (15,535 | ) | 371 | ||||
Net cash provided by operating activities | 19,953 | 44,728 | |||||
Cash flows from investing activities: | |||||||
Capital expenditures | (18,642 | ) | (11,774 | ) | |||
Cash paid for acquisitions of businesses, net of cash acquired | — | (5,582 | ) | ||||
Expenditures for identifiable intangible assets | (146 | ) | (254 | ) | |||
Purchase of Company-owned life insurance policies | (1,577 | ) | — | ||||
Proceeds from sale of property, plant and equipment, net | 166 | 52 | |||||
Net cash used in investing activities | (20,199 | ) | (17,558 | ) | |||
Cash flows from financing activities: | |||||||
Net change in short-term borrowings | 11,155 | 3,403 | |||||
Cash paid for treasury stock | (30,869 | ) | (73,679 | ) | |||
Cash dividends paid | (7,847 | ) | (7,131 | ) | |||
Cash paid for contingent consideration on prior acquisitions | (1,781 | ) | — | ||||
Cash paid for acquisition of noncontrolling interests of consolidated subsidiaries | — | (15,545 | ) | ||||
Proceeds from long-term borrowings | 4,571 | 51,100 | |||||
Repayments of long-term borrowings | (5,171 | ) | (1,951 | ) | |||
Proceeds from exercise of stock options | 14,483 | 22,171 | |||||
Excess tax benefits from share-based compensation | 3,879 | 4,371 | |||||
Net interest payments on derivatives with an other-than-insignificant financing element | (800 | ) | (723 | ) | |||
Net cash used in financing activities | (12,380 | ) | (17,984 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | 2,844 | 26,040 | |||||
Net (decrease) increase in cash and cash equivalents | (9,782 | ) | 35,226 | ||||
Cash and cash equivalents at beginning of period | 77,128 | 540,038 | |||||
Cash and cash equivalents at end of period | $ | 67,346 | $ | 575,264 |
Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total DENTSPLY International Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||
Balance at December 31, 2010 | $ | 1,628 | $ | 204,902 | $ | 2,320,350 | $ | 24,156 | $ | (711,650 | ) | $ | 1,839,386 | $ | 70,526 | $ | 1,909,912 | ||||||||||||||
Net income | — | — | 69,084 | — | — | 69,084 | 379 | 69,463 | |||||||||||||||||||||||
Other comprehensive income | 64,109 | 64,109 | 3,264 | 67,373 | |||||||||||||||||||||||||||
Acquisition of noncontrolling interest | — | 21,463 | — | — | — | 21,463 | (37,008 | ) | (15,545 | ) | |||||||||||||||||||||
Exercise of stock options | — | (6,450 | ) | — | — | 28,622 | 22,172 | — | 22,172 | ||||||||||||||||||||||
Tax benefit from stock options exercised | — | 4,371 | — | — | — | 4,371 | — | 4,371 | |||||||||||||||||||||||
Share based compensation expense | — | 4,668 | — | — | — | 4,668 | — | 4,668 | |||||||||||||||||||||||
Funding of Employee Stock Ownership Plan | — | 379 | — | — | 2,595 | 2,974 | — | 2,974 | |||||||||||||||||||||||
Treasury shares purchased | — | — | — | — | (73,679 | ) | (73,679 | ) | — | (73,679 | ) | ||||||||||||||||||||
RSU distributions | — | (5,630 | ) | — | — | 3,473 | (2,157 | ) | — | (2,157 | ) | ||||||||||||||||||||
RSU dividends | — | 45 | (45 | ) | — | — | — | — | — | ||||||||||||||||||||||
Cash dividends ($0.05 per share) | — | — | (7,053 | ) | — | — | (7,053 | ) | — | (7,053 | ) | ||||||||||||||||||||
Balance at March 31, 2011 | $ | 1,628 | $ | 223,748 | $ | 2,382,336 | $ | 88,265 | $ | (750,639 | ) | $ | 1,945,338 | $ | 37,161 | $ | 1,982,499 |
Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total DENTSPLY International Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||
Balance at December 31, 2011 | $ | 1,628 | $ | 229,687 | $ | 2,535,709 | $ | (190,970 | ) | $ | (727,977 | ) | $ | 1,848,077 | $ | 36,074 | $ | 1,884,151 | |||||||||||||
Net income | — | — | 53,284 | — | — | 53,284 | 944 | 54,228 | |||||||||||||||||||||||
Other comprehensive income | — | — | — | 122,939 | — | 122,939 | 1,340 | 124,279 | |||||||||||||||||||||||
Exercise of stock options | — | (5,227 | ) | — | — | 19,709 | 14,482 | — | 14,482 | ||||||||||||||||||||||
Tax benefit from stock options exercised | — | 3,879 | — | — | — | 3,879 | — | 3,879 | |||||||||||||||||||||||
Share based compensation expense | — | 4,222 | — | — | — | 4,222 | — | 4,222 | |||||||||||||||||||||||
Funding of Employee Stock Ownership Plan | — | 370 | — | — | 3,272 | 3,642 | — | 3,642 | |||||||||||||||||||||||
Treasury shares purchased | — | — | — | — | (30,869 | ) | (30,869 | ) | — | (30,869 | ) | ||||||||||||||||||||
RSU distributions | — | (8,147 | ) | — | — | 4,910 | (3,237 | ) | — | (3,237 | ) | ||||||||||||||||||||
RSU dividends | — | 57 | (57 | ) | — | — | — | — | — | ||||||||||||||||||||||
Cash dividends ($0.055 per share) | — | — | (7,802 | ) | — | — | (7,802 | ) | — | (7,802 | ) | ||||||||||||||||||||
Balance at March 31, 2012 | $ | 1,628 | $ | 224,841 | $ | 2,581,134 | $ | (68,031 | ) | $ | (730,955 | ) | $ | 2,008,617 | $ | 38,358 | $ | 2,046,975 |
Three Months Ended | |||||||
(in thousands) | 2012 | 2011 | |||||
Stock option expense | $ | 2,381 | $ | 2,338 | |||
RSU expense | 1,546 | 2,051 | |||||
Total stock based compensation expense | $ | 3,927 | $ | 4,389 | |||
Total related tax benefit | $ | 1,231 | $ | 1,253 |
Outstanding | Exercisable | ||||||||||||||||||||
(in thousands, except per share data) | Shares | Weighted Average Exercise Price | Aggregate Intrinsic Value | Shares | Weighted Average Exercise Price | Aggregate Intrinsic Value | |||||||||||||||
December 31, 2011 | 10,148 | $ | 31.23 | $ | 51,402 | 8,049 | $ | 30.06 | $ | 50,365 | |||||||||||
Granted | 1,236 | 38.74 | |||||||||||||||||||
Exercised | (622 | ) | 23.27 | ||||||||||||||||||
Cancelled | (14 | ) | 38.48 | ||||||||||||||||||
Forfeited | (21 | ) | 36.37 | ||||||||||||||||||
March 31, 2012 | 10,727 | $ | 32.54 | $ | 86,449 | 7,870 | $ | 30.94 | $ | 77,353 |
(in thousands, except per share data) | Shares | Weighted Average Grant Date Fair Value | ||||
December 31, 2011 | 897 | $ | 32.50 | |||
Granted | 396 | 38.74 | ||||
Vested | (238 | ) | 26.24 | |||
Forfeited | (19 | ) | 35.74 | |||
March 31, 2012 | 1,036 | $ | 36.26 |
(in thousands) | March 31, 2012 | December 31, 2011 | |||||
Foreign currency translation adjustments | $ | 94,915 | $ | (37,216 | ) | ||
Net loss on derivative financial instruments | (149,522 | ) | (117,390 | ) | |||
Net unrealized holding gains on available-for-sale securities | 22,484 | (516 | ) | ||||
Pension liability adjustments | (34,046 | ) | (33,986 | ) | |||
Foreign currency translation related to acquisition of noncontrolling interests | (1,862 | ) | (1,862 | ) | |||
$ | (68,031 | ) | $ | (190,970 | ) |
Three Months Ended | |||||||
Basic Earnings Per Common Share Computation | |||||||
(in thousands, except per share amounts) | 2012 | 2011 | |||||
Net income attributable to DENTSPLY International | $ | 53,284 | $ | 69,084 | |||
Common shares outstanding | 141,721 | 141,614 | |||||
Earnings per common share - basic | $ | 0.38 | $ | 0.49 | |||
Diluted Earnings Per Common Share Computation | |||||||
(in thousands, except per share amounts) | |||||||
Net income attributable to DENTSPLY International | $ | 53,284 | $ | 69,084 | |||
Common shares outstanding | 141,721 | 141,614 | |||||
Incremental shares from assumed exercise of dilutive options from stock-based compensation awards | 2,263 | 2,430 | |||||
Total shares | 143,984 | 144,044 | |||||
Earnings per common share - diluted | $ | 0.37 | $ | 0.48 |
(in thousands) | |||
Inventory | $ | 84,659 | |
Other Current assets | 140,462 | ||
Property, plant and equipment | 178,495 | ||
Identifiable intangible assets | 985,400 | ||
Goodwill | 825,020 | ||
Other long-term assets | 13,438 | ||
Total assets | 2,227,474 | ||
Current liabilities | 106,984 | ||
Long-term liabilities | 329,700 | ||
Total liabilities | 436,684 | ||
Net assets | $ | 1,790,790 |
(in thousands, except for useful life) | Amount | Useful Life (in years) | |||
Customer relationships | $ | 636,000 | 17.5 - 20 | ||
Developed technology and patents | 116,500 | 10 | |||
Trade names and trademarks | 229,100 | Indefinite | |||
In-process research and development | 3,800 | — | |||
Total | $ | 985,400 |
Three Months Ended March 31, | |||
(in thousands, except per share data) | 2011 | ||
Net sales | $ | 713,235 | |
Net income attributable to DENTSPLY | $ | 69,445 | |
Diluted earnings per common share | $ | 0.48 |
Three Months Ended | |||||||
(in thousands) | 2012 | 2011 | |||||
Dental Consumable and Laboratory Businesses | $ | 246,931 | $ | 231,120 | |||
Orthodontics/Canada/Mexico/Japan | 72,902 | 88,446 | |||||
Select Distribution Businesses | 68,226 | 69,575 | |||||
Implants/Endodontics/Healthcare/Pacific Rim | 329,668 | 182,406 | |||||
All Other (a) | (1,314 | ) | (1,044 | ) | |||
Total | $ | 716,413 | $ | 570,503 |
Three Months Ended | |||||||
(in thousands) | 2012 | 2011 | |||||
Dental Consumable and Laboratory Businesses | $ | 207,484 | $ | 201,108 | |||
Orthodontics/Canada/Mexico/Japan | 65,841 | 80,475 | |||||
Select Distribution Businesses | 66,628 | 67,449 | |||||
Implants/Endodontics/Healthcare/Pacific Rim | 326,986 | 179,017 | |||||
All Other (a) | (1,314 | ) | (1,044 | ) | |||
Total excluding precious metal content | 665,625 | 527,005 | |||||
Precious metal content | 50,788 | 43,498 | |||||
Total including precious metal content | $ | 716,413 | $ | 570,503 |
Three Months Ended | |||||||
(in thousands) | 2012 | 2011 | |||||
Dental Consumable and Laboratory Businesses | $ | 48,980 | $ | 48,427 | |||
Orthodontics/Canada/Mexico/Japan | 1,179 | 984 | |||||
Select Distribution Businesses | 396 | 345 | |||||
Implants/Endodontics/Healthcare/Pacific Rim | 35,740 | 35,985 | |||||
All Other (a) | 67,137 | 64,520 | |||||
Eliminations | (153,432 | ) | (150,261 | ) | |||
Total | $ | — | $ | — |
Three Months Ended | |||||||
(in thousands) | 2012 | 2011 | |||||
Dental Consumable and Laboratory Businesses | $ | 61,470 | $ | 55,983 | |||
Orthodontics/Canada/Mexico/Japan | 366 | 9,278 | |||||
Select Distribution Businesses | (1,453 | ) | (99 | ) | |||
Implants/Endodontics/Healthcare/Pacific Rim | 66,625 | 54,381 | |||||
All Other (a) | (38,611 | ) | (20,326 | ) | |||
Segment operating income | 88,397 | 99,217 | |||||
Reconciling Items: | |||||||
Restructuring and other costs | 1,237 | 633 | |||||
Interest expense | 15,782 | 6,343 | |||||
Interest income | (2,297 | ) | (1,828 | ) | |||
Other expense (income), net | 484 | 70 | |||||
Income before income taxes | $ | 73,191 | $ | 93,999 |
Assets | |||||||
(in thousands) | March 31, 2012 | December 31, 2011 | |||||
Dental Consumable and Laboratory Businesses | $ | 1,064,801 | $ | 1,180,001 | |||
Orthodontics/Canada/Mexico/Japan | 271,614 | 328,376 | |||||
Select Distribution Businesses | 203,290 | 159,210 | |||||
Implants/Endodontics/Healthcare/Pacific Rim | 3,232,374 | 2,890,880 | |||||
All Other (a) | 242,982 | 196,931 | |||||
Total | $ | 5,015,061 | $ | 4,755,398 |
(in thousands) | March 31, 2012 | December 31, 2011 | |||||
Finished goods | $ | 239,062 | $ | 218,814 | |||
Work-in-process | 75,748 | 66,952 | |||||
Raw materials and supplies | 88,242 | 75,996 | |||||
$ | 403,052 | $ | 361,762 |
Defined Benefit Plans | Three Months Ended | ||||||
(in thousands) | 2012 | 2011 | |||||
Service cost | $ | 2,978 | $ | 2,434 | |||
Interest cost | 2,691 | 2,187 | |||||
Expected return on plan assets | (1,225 | ) | (1,216 | ) | |||
Amortization of prior service cost | (37 | ) | 20 | ||||
Amortization of net loss | 498 | 383 | |||||
Net periodic benefit cost | $ | 4,905 | $ | 3,808 |
Other Postretirement Plans | Three Months Ended | ||||||
(in thousands) | 2012 | 2011 | |||||
Service cost | $ | 19 | $ | 16 | |||
Interest cost | 117 | 138 | |||||
Amortization of net loss | 58 | 49 | |||||
Net periodic benefit cost | $ | 194 | $ | 203 |
(in thousands) | Pension Benefits | Other Postretirement Benefits | |||||
Actual contributions through March 31, 2012 | $ | 3,404 | $ | 178 | |||
Projected for the remainder of the year | 8,782 | 800 | |||||
Total for year | $ | 12,186 | $ | 978 |
Severance | |||||||||||||||
(in thousands) | 2010 and Prior Plans | 2011 Plans | 2012 Plans | Total | |||||||||||
Balance at December 31, 2011 | $ | 3,380 | $ | 635 | $ | — | $ | 4,015 | |||||||
Provisions and adjustments | — | — | 1,169 | 1,169 | |||||||||||
Amounts applied | (387 | ) | (74 | ) | (157 | ) | (618 | ) | |||||||
Balance at March 31, 2012 | $ | 2,993 | $ | 561 | $ | 1,012 | $ | 4,566 |
Lease/Contract Terminations | |||||||
(in thousands) | 2010 and Prior Plans | Total | |||||
Balance at December 31, 2011 | $ | 1,011 | $ | 1,011 | |||
Provisions and adjustments | — | — | |||||
Amounts applied | (44 | ) | (44 | ) | |||
Balance at March 31, 2012 | $ | 967 | $ | 967 |
Other Restructuring Costs | |||||||||||
(in thousands) | 2010 and Prior Plans | 2012 Plans | Total | ||||||||
Balance at December 31, 2011 | $ | 34 | $ | — | $ | 34 | |||||
Provisions and adjustments | — | 153 | 153 | ||||||||
Amounts applied | — | — | — | ||||||||
Balance at March 31, 2012 | $ | 34 | $ | 153 | $ | 187 |
(in thousands) | December 31, 2011 | Provisions and Adjustments | Amounts Applied | March 31, 2012 | |||||||||||
Dental Consumable and Laboratory Businesses | $ | 3,601 | $ | 205 | $ | (386 | ) | $ | 3,420 | ||||||
Orthodontics/Canada/Mexico/Japan | 240 | — | (14 | ) | 226 | ||||||||||
Implants/Endodontics/Healthcare/Pacific Rim | 1,219 | 1,117 | (262 | ) | 2,074 | ||||||||||
$ | 5,060 | $ | 1,322 | $ | (662 | ) | $ | 5,720 |
Foreign Exchange Forward Contracts | Notional Amounts Maturing in the Year | Fair Value Net Asset (Liability) | ||||||||||
(in thousands) | 2012 | 2013 | March 31, 2012 | |||||||||
Forward sale, 12.1 million Australian dollars | $ | 9,443 | $ | 2,721 | $ | (134 | ) | |||||
Forward purchase, 7.5 million British pounds | (11,729 | ) | (197 | ) | 265 | |||||||
Forward sale, 39.7 million Canadian dollars | 26,062 | 13,882 | 449 | |||||||||
Forward purchase, 22.2 million Danish kroner | (3,970 | ) | — | (29 | ) | |||||||
Forward sale, 91.6 million euros | 40,912 | 81,079 | 2,169 | |||||||||
Forward purchase, 0.3 billion Japanese yen | 1,342 | (5,229 | ) | (268 | ) | |||||||
Forward sale, 160.7 million Mexican pesos | 12,541 | — | 207 | |||||||||
Forward purchase, 19.4 million Norwegian kroner | (3,413 | ) | — | (21 | ) | |||||||
Forward sale, 3.7 million Polish zlotys | 1,196 | — | (33 | ) | ||||||||
Forward sale, 2.6 million Singapore dollars | 2,071 | — | 49 | |||||||||
Forward sale, 5.6 billion South Korean won | 4,914 | — | 77 | |||||||||
Forward purchase, 1.0 billion Swedish kronor | (105,035 | ) | (48,487 | ) | 2,554 | |||||||
Forward sale, 16.5 million Swiss francs | 4,461 | 13,468 | (258 | ) | ||||||||
Forward sale, 77.1 million Taiwanese dollars | 2,615 | — | 32 | |||||||||
Total foreign exchange forward contracts | $ | (18,590 | ) | $ | 57,237 | $ | 5,059 |
Interest Rate Swaps | Notional Amounts Maturing in the Year | Fair Value Net Asset (Liability) | ||||||||||||||||||||||
(in thousands) | 2012 | 2013 | 2014 | 2015 | 2016 and Beyond | March 31, 2012 | ||||||||||||||||||
Euro | $ | 944 | $ | 1,259 | $ | 963 | $ | 963 | $ | 2,167 | $ | (591 | ) | |||||||||||
Japanese yen | — | — | 151,490 | — | — | 495 | ||||||||||||||||||
Swiss francs | — | — | — | — | 71,990 | (842 | ) | |||||||||||||||||
Total interest rate swaps | $ | 944 | $ | 1,259 | $ | 152,453 | $ | 963 | $ | 74,157 | $ | (938 | ) |
Commodity Swap Contracts | Notional Amounts Maturing in the Year | Fair Value Net Asset (Liability) | ||||||||||
(in thousands) | 2012 | 2013 | March 31, 2012 | |||||||||
Silver swap - U.S. dollar | $ | 2,801 | $ | 376 | $ | 397 | ||||||
Platinum swap - U.S. dollar | 1,272 | 101 | 124 | |||||||||
Total commodity contracts | $ | 4,073 | $ | 477 | $ | 521 |
Cross Currency Basis Swap | Notional Amounts Maturing in the Year | Fair Value Net Asset (Liability) | ||||||
(in thousands) | 2014 | March 31, 2012 | ||||||
Euro 449.8 million @ $1.45 pay USD 3 mth. LIBOR receive EUR 3 mth. EURIBOR | $ | 599,694 | $ | (49,844 | ) | |||
Total cross currency basis swaps | $ | 599,694 | $ | (49,844 | ) |
Cross Currency Basis Swaps | Notional Amounts Maturing in the Year | Fair Value Net Asset (Liability) | ||||||||||||||
(in thousands) | 2012 | 2013 | 2014 | March 31, 2012 | ||||||||||||
Swiss franc 592.5 million @ $1.12 pay CHF 3 mth. LIBOR rec. USD 3 mth. LIBOR | $ | 62,687 | $ | 504,486 | $ | 89,046 | $ | (125,313 | ) | |||||||
Euro 618.0 million @ $1.27 pay EUR 3 mth. EURIBOR rec. USD 3 mth. LIBOR | — | 824,010 | — | (36,706 | ) | |||||||||||
Total cross currency basis swaps | $ | 62,687 | $ | 1,328,496 | $ | 89,046 | $ | (162,019 | ) |
Interest Rate Swap | Notional Amounts Maturing in the Year | Fair Value Net Asset (Liability) | ||||||||||||||
(in thousands) | 2014 | 2015 | 2016 and Beyond | March 31, 2012 | ||||||||||||
U.S. dollars | $ | 45,000 | $ | 60,000 | $ | 45,000 | $ | 4,757 | ||||||||
Total interest rate swaps | $ | 45,000 | $ | 60,000 | $ | 45,000 | $ | 4,757 |
March 31, 2012 | ||||||||||||||||
(in thousands) | Prepaid Expenses and Other Current Assets | Other Noncurrent Assets, Net | Accrued Liabilities | Other Noncurrent Liabilities | ||||||||||||
Designated as Hedges | ||||||||||||||||
Foreign exchange forward contracts | $ | 3,880 | $ | 380 | $ | 1,210 | $ | 332 | ||||||||
Commodity contracts | 521 | — | — | — | ||||||||||||
Interest rate swaps | 2,521 | 3,223 | — | 1,334 | ||||||||||||
Cross currency basis swaps | — | 4,160 | 70,671 | 95,508 | ||||||||||||
Total | $ | 6,922 | $ | 7,763 | $ | 71,881 | $ | 97,174 | ||||||||
Not Designated as Hedges | ||||||||||||||||
Foreign exchange forward contracts | $ | 3,428 | $ | — | $ | 1,087 | $ | — | ||||||||
DIO equity option contracts | — | — | — | 706 | ||||||||||||
Interest rate swaps | — | — | 112 | 479 | ||||||||||||
Cross currency basis swaps | — | — | — | 49,844 | ||||||||||||
Total | $ | 3,428 | $ | — | $ | 1,199 | $ | 51,029 |
December 31, 2011 | ||||||||||||||||
(in thousands) | Prepaid Expenses and Other Current Assets | Other Noncurrent Assets, Net | Accrued Liabilities | Other Noncurrent Liabilities | ||||||||||||
Designated as Hedges | ||||||||||||||||
Foreign exchange forward contracts | $ | 5,464 | $ | 896 | $ | 641 | $ | 107 | ||||||||
Commodity contracts | — | 15 | 257 | 2 | ||||||||||||
Interest rate swaps | 2,539 | 3,160 | — | 1,050 | ||||||||||||
Cross currency basis swaps | — | 19,838 | 13,790 | 117,974 | ||||||||||||
Total | $ | 8,003 | $ | 23,909 | $ | 14,688 | $ | 119,133 | ||||||||
Not Designated as Hedges | ||||||||||||||||
Foreign exchange forward contracts | $ | 1,943 | $ | — | $ | 3,150 | $ | — | ||||||||
Commodity contracts | — | — | — | 419 | ||||||||||||
Interest rate swaps | — | — | 105 | 476 | ||||||||||||
Cross currency basis swaps | — | — | — | 67,690 | ||||||||||||
Total | $ | 1,943 | $ | — | $ | 3,255 | $ | 68,585 |
Three Months Ended March 31, 2012 | ||||||||||
Derivatives in Cash Flow Hedging | ||||||||||
(in thousands) | Gain (Loss) in AOCI | Classification of Gains (Losses) | Effective Portion Reclassified from AOCI into Income | |||||||
Interest rate contracts | $ | (672 | ) | Interest expense | $ | (905 | ) | |||
Foreign exchange forward contracts | (1,434 | ) | Cost of products sold | 1,150 | ||||||
Foreign exchange forward contracts | (89 | ) | SG&A expenses | 231 | ||||||
Commodity contracts | 839 | Cost of products sold | (46 | ) | ||||||
Total | $ | (1,356 | ) | $ | 430 |
Derivatives in Cash Flow Hedging | ||||||
Classification of Gains (Losses) | Ineffective portion Recognized in Income | |||||
(in thousands) | ||||||
Foreign exchange forward contracts | Other expense, net | 200 | ||||
Commodity contracts | Interest expense | (17 | ) | |||
Total | $ | 183 |
Derivatives in Cash Flow Hedging | ||||||||||
(in thousands) | Gain (Loss) in AOCI | Classification of Gains (Losses) | Effective Portion Reclassified from AOCI into Income | |||||||
Interest rate swaps | $ | (281 | ) | Interest expense | $ | (1,251 | ) | |||
Foreign exchange forward contracts | (932 | ) | Cost of products sold | 467 | ||||||
Foreign exchange forward contracts | (266 | ) | SG&A expenses | 105 | ||||||
Commodity contracts | 27 | Cost of products sold | 105 | |||||||
Total | $ | (1,452 | ) | $ | (574 | ) |
Derivatives in Cash Flow Hedging | ||||||
(in thousands) | Classification of Gains (Losses) | Ineffective Portion Recognized in Income | ||||
Interest rate swaps | Other expense, net | $ | 102 | |||
Foreign exchange forward contracts | Interest expense | (216 | ) | |||
Commodity contracts | Interest expense | (3 | ) | |||
Total | $ | (117 | ) |
Three Months Ended March 31, 2012 | ||||||||||
Derivatives in Net Investment Hedging | ||||||||||
(in thousands) | Gain (Loss) in AOCI | Classification of Gains (Losses) | Gain (Loss) Recognized in Income | |||||||
Cross currency interest rate swaps | $ | (25,464 | ) | Interest income | $ | 771 | ||||
Cross currency interest rate swaps | (24,905 | ) | Interest expense | (1,206 | ) | |||||
Total | $ | (50,369 | ) | $ | (435 | ) |
Three Months Ended March 31, 2011 | ||||||||||
Derivatives in Net Investment Hedging | ||||||||||
(in thousands) | Gain (Loss) in AOCI | Classification of Gains (Losses) | Gain (Loss) Recognized in Income | |||||||
Cross currency interest rate swaps | $ | (12,948 | ) | Interest income | $ | 199 | ||||
Interest expense | (25 | ) | ||||||||
Cross currency interest rate swaps | (29,732 | ) | Interest expense | (957 | ) | |||||
Total | $ | (42,680 | ) | $ | (783 | ) |
Derivatives in Fair Value Hedging | ||||||||||
(in thousands) | Classification of Gains (Losses) | Three Months Ended March 31, 2012 | Three Months Ended March 31, 2011 | |||||||
Interest rate contracts | Interest expense | $ | 839 | $ | — | |||||
Total | $ | 839 | $ | — |
Derivatives Not Designated as Hedging | ||||||||||
(in thousands) | Classification of Gains (Losses) | Three Months Ended March 31, 2012 | Three Months Ended March 31, 2011 | |||||||
Foreign exchange forward contracts | Other expense, net | $ | 2,851 | $ | 1,704 | |||||
DIO equity option contracts | Other expense, net | (273 | ) | — | ||||||
Interest rate contracts | Interest expense | (41 | ) | (55 | ) | |||||
Cross currency interest rate contracts (a) | Other expense, net | 18,126 | — | |||||||
Cross currency interest rate contracts | Interest income | 419 | — | |||||||
Total | $ | 21,082 | $ | 1,649 |
Three Months Ended | ||||||||
(in thousands, net of tax) | March 31, 2012 | March 31, 2011 | ||||||
Beginning balance | $ | (12,737 | ) | $ | (1,468 | ) | ||
Changes in fair value of derivatives | (777 | ) | (1,036 | ) | ||||
Reclassifications to earnings from equity | (430 | ) | 229 | |||||
Total activity | (1,207 | ) | (807 | ) | ||||
Ending balance | $ | (13,944 | ) | $ | (2,275 | ) |
Three Months Ended | ||||||||
(in thousands, net of tax) | March 31, 2012 | March 31, 2011 | ||||||
Beginning balance | $ | (143,730 | ) | $ | 45,417 | |||
Foreign currency translation adjustment | 126,808 | 86,438 | ||||||
Changes in fair value of: | ||||||||
Foreign currency debt | 5,324 | 1,014 | ||||||
Derivative hedge instruments | (30,926 | ) | (26,205 | ) | ||||
Total activity | 101,206 | 61,247 | ||||||
Ending balance | $ | (42,524 | ) | $ | 106,664 |
March 31, 2012 | |||||||||||||||
(in thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||
Assets | |||||||||||||||
Money market funds | $ | 7,932 | $ | 7,932 | $ | — | $ | — | |||||||
Interest rate swaps | 5,744 | — | 5,744 | — | |||||||||||
Commodity forward purchase contracts | 521 | — | 521 | — | |||||||||||
Cross currency interest rate swaps | 4,160 | — | 4,160 | — | |||||||||||
Foreign exchange forward contracts | 7,687 | — | 7,687 | — | |||||||||||
Corporate convertible bonds | 82,340 | — | — | 82,340 | |||||||||||
Total assets | $ | 108,384 | $ | 7,932 | $ | 18,112 | $ | 82,340 | |||||||
Liabilities | |||||||||||||||
Interest rate swaps | $ | 1,925 | $ | — | $ | 1,925 | $ | — | |||||||
Cross currency interest rate swaps | 216,023 | — | 216,023 | — | |||||||||||
Foreign exchange forward contracts | 2,628 | — | 2,628 | — | |||||||||||
Long term debt | 154,801 | — | 154,801 | — | |||||||||||
Contingent considerations on acquisitions | 1,201 | — | — | 1,201 | |||||||||||
DIO equity option contracts | 706 | — | — | 706 | |||||||||||
Total liabilities | $ | 377,284 | $ | — | $ | 375,377 | $ | 1,907 |
December 31, 2011 | |||||||||||||||
(in thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||
Assets | |||||||||||||||
Money market funds | $ | 10,516 | $ | 10,516 | $ | — | $ | — | |||||||
Interest rate swaps | 5,699 | — | 5,699 | — | |||||||||||
Commodity forward purchase contracts | 15 | — | 15 | — | |||||||||||
Cross currency interest rate swaps | 19,838 | — | 19,838 | — | |||||||||||
Foreign exchange forward contracts | 8,303 | — | 8,303 | — | |||||||||||
Corporate convertible bonds | 47,850 | — | — | 47,850 | |||||||||||
Total assets | $ | 92,221 | $ | 10,516 | $ | 33,855 | $ | 47,850 | |||||||
Liabilities | |||||||||||||||
Interest rate swaps | $ | 1,631 | $ | — | $ | 1,631 | $ | — | |||||||
Commodity forward purchase contracts | 259 | — | 259 | — | |||||||||||
Cross currency interest rate swaps | 199,454 | — | 199,454 | — | |||||||||||
Foreign exchange forward contracts | 3,898 | — | 3,898 | — | |||||||||||
Long term debt | 154,512 | — | 154,512 | — | |||||||||||
Contingent considerations on acquisitions | 2,917 | — | — | 2,917 | |||||||||||
DIO equity option contracts | 419 | — | — | 419 | |||||||||||
Total liabilities | $ | 363,090 | $ | — | $ | 359,754 | $ | 3,336 |
(in thousands) | Corporate Convertible Bonds | DIO Equity Options Contracts | Contingent Considerations | ||||||||
Balance at December 31, 2011 | $ | 47,850 | $ | 419 | $ | 2,917 | |||||
Payments, gross | — | — | (1,781 | ) | |||||||
Unrealized gain: | |||||||||||
Reported in AOCI | 32,001 | — | — | ||||||||
Unrealized loss: | |||||||||||
Reported in Other expense (income), net | — | 271 | — | ||||||||
Effects of exchange rate changes | 2,489 | 16 | 65 | ||||||||
Balance at March 31, 2012 | $ | 82,340 | $ | 706 | $ | 1,201 |
(in thousands) | Dental Consumable and Laboratory Businesses | Orthodontics/Canada/Mexico/Japan | Select Distribution Businesses | Implants/Endodontics/Healthcare/Pacific Rim | Total | ||||||||||||||
Balance at December 31, 2011 | $ | 484,779 | $ | 107,291 | $ | 111,011 | $ | 1,486,982 | $ | 2,190,063 | |||||||||
Revision of provisional amounts on prior acquisition | — | — | — | (144,530 | ) | (144,530 | ) | ||||||||||||
Effects of exchange rate changes | 7,822 | 13 | 2,861 | 53,222 | 63,918 | ||||||||||||||
Balance at March 31, 2012 | $ | 492,601 | $ | 107,304 | $ | 113,872 | $ | 1,395,674 | $ | 2,109,451 |
March 31, 2012 | December 31, 2011 | ||||||||||||||||||||||
(in thousands) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||
Patents | $ | 134,648 | $ | (20,837 | ) | $ | 113,811 | $ | 131,252 | $ | (17,393 | ) | $ | 113,859 | |||||||||
Trademarks | 87,577 | (40,524 | ) | 47,053 | 73,413 | (23,885 | ) | 49,528 | |||||||||||||||
Licensing agreements | 30,759 | (17,811 | ) | 12,948 | 30,444 | (17,277 | ) | 13,167 | |||||||||||||||
Customer relationships | 727,912 | (131,643 | ) | 596,269 | 411,626 | (19,066 | ) | 392,560 | |||||||||||||||
Total definite-lived | $ | 980,896 | $ | (210,815 | ) | $ | 770,081 | $ | 646,735 | $ | (77,621 | ) | $ | 569,114 | |||||||||
Trademarks | $ | 219,547 | $ | — | $ | 219,547 | $ | 210,675 | $ | — | $ | 210,675 | |||||||||||
In-process R&D | 8,910 | — | 8,910 | 11,311 | — | 11,311 | |||||||||||||||||
Total indefinite-lived | $ | 228,457 | $ | — | $ | 228,457 | $ | 221,986 | $ | — | $ | 221,986 | |||||||||||
Total identifiable intangible assets | $ | 1,209,353 | $ | (210,815 | ) | $ | 998,538 | $ | 868,721 | $ | (77,621 | ) | $ | 791,100 |
• | In the three months ended March 31, 2012, the Company achieved record first quarter sales. Sales in the period grew by 25.6% on a US GAAP reported basis and grew 26.3%, excluding precious metal content. The sales growth excluding precious metal content was driven by acquisition growth of 27.2%, while internal growth added 1.1%, and currency translation was negative 2.0%. The internal growth in the period was negatively impacted by the lingering impact of the March 11, 2011 natural disaster in Japan, particularly by supply constraints in our Orthodontics business. Internal growth excluding Orthodontics and our businesses in Japan was 4.5%. This internal growth was comprised of very strong growth in the United States of 7.4%, while Europe reported 2.2% and rest of world had 4.4%. |
• | The Company is proceeding with its integration efforts for the Astra Tech acquisition that was completed on August 31, 2011. Integration activity remains high, with a recently announced new combined dental implant organization going live in the United States. |
• | The Company's Orthodontics recovery plan is also proceeding, with gradually increasing levels of supply. The supply situation continued to have a negative impact on year-over-year earnings of between $0.04 and $0.05 per dilutive share in the first quarter. The impact is expected to diminish in the second quarter and turn positive on a year-over-year basis in the third quarter of 2012. |
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
(in millions) | 2012 | 2011 | $ Change | % Change | ||||||||||
Net sales | $ | 716.4 | $ | 570.5 | $ | 145.9 | 25.6 | % | ||||||
Less: precious metal content of sales | 50.8 | 43.5 | 7.3 | 16.8 | % | |||||||||
Net sales, excluding precious metal content | $ | 665.6 | $ | 527.0 | $ | 138.6 | 26.3 | % |
Three Months Ended March 31, 2012 | |||||||||||
United States | Europe | All Other Regions | Worldwide | ||||||||
Internal sales growth | 3.5 | % | (1.1 | )% | 1.3 | % | 1.1 | % | |||
Acquisition sales growth | 15.9 | % | 42.9 | % | 15.2 | % | 27.2 | % | |||
Constant currency sales growth | 19.4 | % | 41.8 | % | 16.5 | % | 28.3 | % | |||
Adjusted internal sales growth (a) | 7.4 | % | 2.2 | % | 4.4 | % | 4.5 | % |
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
(in millions) | 2012 | 2011 | $ Change | % Change | ||||||||||
Gross profit | $ | 392.8 | $ | 300.0 | $ | 92.8 | 30.9 | % | ||||||
Gross profit as a percentage of net sales, including precious metal content | 54.8 | % | 52.6 | % | ||||||||||
Gross profit as a percentage of net sales, excluding precious metal content | 59.0 | % | 56.9 | % |
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
(in millions) | 2012 | 2011 | $ Change | % Change | ||||||||||
Selling, general and administrative expenses (“SG&A”) | $ | 304.4 | $ | 200.8 | $ | 103.6 | 51.6 | % | ||||||
Restructuring and other costs | $ | 1.2 | $ | 0.6 | $ | 0.6 | NM | |||||||
SG&A as a percentage of net sales, including precious metal content | 42.5 | % | 35.2 | % | ||||||||||
SG&A as a percentage of net sales, excluding precious metal content | 45.7 | % | 38.1 | % |
Three Months Ended March 31, | |||||||||||
(in millions) | 2012 | 2011 | Change | ||||||||
Net interest expense | $ | 13.5 | $ | 4.5 | $ | 9.0 | |||||
Other expense (income), net | 0.5 | 0.1 | 0.4 | ||||||||
Net interest and other expense | $ | 14.0 | $ | 4.6 | $ | 9.4 |
Three Months Ended March 31, | |||||||||||
(in millions, except per share data) | 2012 | 2011 | $ Change | ||||||||
Effective income tax rates | 20.1 | % | 25.2 | % | |||||||
Equity in net loss of unconsolidated affiliated company | $ | (4.2 | ) | $ | (0.8 | ) | $ | (3.4 | ) | ||
Net income attributable to noncontrolling interests | $ | 0.9 | $ | 0.4 | $ | 0.5 | |||||
Net income attributable to DENTSPLY International | $ | 53.3 | $ | 69.1 | $ | (15.8 | ) | ||||
Earnings per common share - diluted | $ | 0.37 | $ | 0.48 |
Three Months Ended March 31, 2012 | |||||||
(in thousands, except per share amounts) | Income (Expense) | Per Diluted Common Share | |||||
Net income attributable to DENTSPLY International | $ | 53,284 | $ | 0.37 | |||
Amortization of purchased intangible assets, net of tax | 10,982 | 0.08 | |||||
Acquisition related activities, net of tax and noncontrolling interests | 4,797 | 0.03 | |||||
Loss on fair value adjustments at an unconsolidated affiliated company, net of tax | 4,655 | 0.03 | |||||
Restructuring and other costs, net of tax and noncontrolling interests | 1,164 | 0.01 | |||||
Orthodontics business continuity costs, net of tax | 408 | — | |||||
Income tax related adjustments | (35 | ) | — | ||||
Adjusted non-US GAAP earnings | $ | 75,255 | $ | 0.52 |
Three Months Ended March 31, 2011 | |||||||
(in thousands, except per share amounts) | Income (Expense) | Per Diluted Common Share | |||||
Net income attributable to DENTSPLY International | $ | 69,084 | $ | 0.48 | |||
Amortization of purchased intangible assets, net of tax | 1,508 | 0.01 | |||||
Loss on fair value adjustments at an unconsolidated affiliated company, net of tax | 921 | 0.01 | |||||
Acquisition related activities, net of tax and noncontrolling interests | 245 | — | |||||
Income tax related adjustments | 196 | — | |||||
Restructuring and other costs, net of tax and noncontrolling interests | 114 | — | |||||
Adjusted non-US GAAP earnings | $ | 72,068 | $ | 0.50 |
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
(in millions) | 2012 | 2011 | $ Change | % Change | ||||||||||
Dental Consumable and Laboratory Businesses | $ | 207.5 | $ | 201.1 | $ | 6.4 | 3.2 | % | ||||||
Orthodontics/Canada/Mexico/Japan | $ | 65.8 | $ | 80.5 | $ | (14.7 | ) | (18.3 | )% | |||||
Select Distribution Businesses | $ | 66.6 | $ | 67.4 | $ | (0.8 | ) | (1.2 | )% | |||||
Implants/Endodontics/Healthcare/Pacific Rim | $ | 327.0 | $ | 179.0 | $ | 148.0 | 82.7 | % |
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
(in millions) | 2012 | 2011 | $ Change | % Change | ||||||||||
Dental Consumable and Laboratory Businesses | $ | 61.5 | $ | 56.0 | $ | 5.5 | 9.8 | % | ||||||
Orthodontics/Canada/Mexico/Japan | $ | 0.4 | $ | 9.3 | $ | (8.9 | ) | (95.7 | )% | |||||
Select Distribution Businesses | $ | (1.5 | ) | $ | (0.1 | ) | $ | (1.4 | ) | NM | ||||
Implants/Endodontics/Healthcare/Pacific Rim | $ | 66.6 | $ | 54.4 | $ | 12.2 | 22.4 | % |
(in thousands, except per share amounts) | ||||||||||||||
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Cost of Shares Purchased | Number of Shares that May be Purchased Under the Share Repurchase Program | ||||||||||
January 1, 2012 | — | $ | — | $ | — | 13,024.7 | ||||||||
February 1, 2012 | 623.3 | 38.38 | 23,919.2 | 12,719.8 | ||||||||||
March 1, 2012 | 174.0 | 39.95 | 6,950.3 | 12,946.7 | ||||||||||
797.3 | $ | 38.72 | $ | 30,869.5 |
Exhibit Number | Description | |
31 | Section 302 Certification Statements. | |
32 | Section 906 Certification Statement. | |
101.INS | XBRL Instance Document | |
101.SCH | XBRL Taxonomy Extension Schema Document | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | XBRL Extension Labels Linkbase Document | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
/s/ | Bret W. Wise | May 2, 2012 | |
Bret W. Wise | Date | ||
Chairman of the Board and | |||
Chief Executive Officer |
/s/ | William R. Jellison | May 2, 2012 | |
William R. Jellison | Date | ||
Senior Vice President and | |||
Chief Financial Officer |
1. | I have reviewed this Form 10-Q of DENTSPLY International Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing equivalent functions): |
/s/ | Bret W. Wise |
Bret W. Wise | |
Chairman of the Board and | |
Chief Executive Officer |
1. | I have reviewed this Form 10-Q of DENTSPLY International Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing equivalent functions): |
/s/ | William R. Jellison |
William R. Jellison | |
Senior Vice President and | |
Chief Financial Officer |
(1) | The Report fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company as of the date of the Report. |
/s/ | Bret W. Wise |
Bret W. Wise | |
Chairman of the Board and | |
Chief Executive Officer |
/s/ | William R. Jellison |
William R. Jellison | |
Senior Vice President and | |
Chief Financial Officer |
SEGMENT INFORMATION Assets (Details) (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2012
|
Dec. 31, 2011
|
||||
---|---|---|---|---|---|---|
Segment Reporting, Asset Reconciling Item [Line Items] | ||||||
Assets | $ 5,015,061 | $ 4,755,398 | ||||
Dental Consumable and Laboratrory Businesses [Member]
|
||||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||||
Assets | 1,064,801 | 1,180,001 | ||||
Orthodontics/Canada/Mexico/Japan [Member]
|
||||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||||
Assets | 271,614 | 328,376 | ||||
Select Distribution Businesses [Member]
|
||||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||||
Assets | 203,290 | 159,210 | ||||
Implants/Endodontics/Healthcare/Pacific Rim [Member]
|
||||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||||
Assets | 3,232,374 | 2,890,880 | ||||
All Other
|
||||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||||
Assets | $ 242,982 | [1] | $ 196,931 | [1] | ||
|
BUSINESS ACQUISITIONS Unaudited Financial Information had the Astra Tech Acquisition Occurred (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified |
3 Months Ended |
---|---|
Mar. 31, 2012
|
|
Business Acquisitions And Investments In Affiliates Abstract [Abstract] | |
Net sales | $ 713,235 |
Net income attributable to DENTSPLY | $ 69,445 |
Diluted earnings per common share (in dollars per share) | $ 0.48 |
FINANCIAL INSTRUMENTS AND DERIVATIVES Impact of the Company's Hedges Not Designated as Hedging (Detail) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2012
|
Mar. 31, 2011
|
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Derivative [Line Items] | |||||
Derivatives Not Designated as Hedging, Gains (Losses) | $ 21,082 | $ 1,649 | |||
Foreign Exchange Forward | Other Expense
|
|||||
Derivative [Line Items] | |||||
Derivatives Not Designated as Hedging, Gains (Losses) | 2,851 | 1,704 | |||
DIO Corporation | Other Expense
|
|||||
Derivative [Line Items] | |||||
Derivatives Not Designated as Hedging, Gains (Losses) | (273) | ||||
Interest Rate Contract | Other Expense
|
|||||
Derivative [Line Items] | |||||
Derivatives Not Designated as Hedging, Gains (Losses) | 18,126 | [1] | |||
Interest Rate Contract | Interest Expense
|
|||||
Derivative [Line Items] | |||||
Derivatives Not Designated as Hedging, Gains (Losses) | (41) | (55) | |||
Interest Rate Contract | Interest Income
|
|||||
Derivative [Line Items] | |||||
Derivatives Not Designated as Hedging, Gains (Losses) | $ 419 | ||||
|
INVENTORIES Additional Information (Detail) (USD $)
In Millions, unless otherwise specified |
Mar. 31, 2012
|
Dec. 31, 2011
|
---|---|---|
Disclosure - Inventories, Net - Additional Information [Abstract] | ||
LIFO inventory amount | $ 7.1 | $ 7.1 |
Percentage of LIFO inventory | 2.00% | 2.00% |
Inventory, LIFO reserve | 5.5 | 5.6 |
Inventory valuation reserve | $ 37.0 | $ 35.1 |
BUSINESS ACQUISITIONS Aggregate Purchase Price Allocation for Acquisitions Based on Final Estimates of Fair Value (Detail) (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2012
|
---|---|
Disclosure - Aggregate Purchase Price Allocation for Acquisitions Based on Final Estimates of Fair Value [Abstract] | |
Inventory | $ 84,659 |
Other Current assets | 140,462 |
Property, plant and equipment | 178,495 |
Identifiable intangible assets | 985,400 |
Goodwill | 825,020 |
Other long-term assets | 13,438 |
Total assets | 2,227,474 |
Current liabilities | 106,984 |
Long-term liabilities | 329,700 |
Total liabilities | 436,684 |
Net assets | $ 1,790,790 |
FINANCIAL INSTRUMENTS AND DERIVATIVES (Tables)
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3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2012
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Fair Value and Consolidated Balance Sheet Location of the Company's Derivatives | The following tables summarize the fair value and consolidated balance sheet location of the Company's derivatives at March 31, 2012 and December 31, 2011:
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Cash Flow Hedging
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Summary of Notional Amounts and Fair Value of the Company's Hedges | The following tables summarize the notional amounts and fair value of the Company's cash flow hedges and non-designated derivatives at March 31, 2012:
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Fair Value and Consolidated Balance Sheet Location of the Company's Derivatives | The following tables summarize the statements of operations impact of the Company's cash flow hedges for the three months ended March 31, 2012 and March 31, 2011:
Three Months Ended March 31, 2011
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Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following tables summarize the statements of operations impact of the Company's hedges of net investments for the three months ended March 31, 2012 and March 31, 2011:
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Net Investment Hedging
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Summary of Notional Amounts and Fair Value of the Company's Hedges | The following tables summarize the notional amounts and fair value of the Company's cross currency basis swaps that are designated as hedges of net investments in foreign operations at March 31, 2012:
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Fair Value Hedging
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Summary of Notional Amounts and Fair Value of the Company's Hedges | The following tables summarize the notional amounts and fair value of the Company's fair value hedges at March 31, 2012:
The following tables summarize the statements of operations impact of the Company's hedges of fair value for the three months ended March 31, 2012 and March 31, 2011:
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Not Designated as Hedging Instrument [Member]
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Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following table summarizes the statements of operations impact of the Company's hedges not designated as hedging for the three months ended March 31, 2012 and March 31, 2011:
(a) The gains and losses on these derivative transactions offset the gains and losses generated by the revaluation of the underlying intercompany loans and are recorded in “Other expense (income), net” on the consolidated statements of operations. |
Commitments and Contingencies - Additional Information (Detail)
|
1 Months Ended | |
---|---|---|
Jun. 30, 2004
San Francisco County, California
|
Dec. 31, 2006
Eastern District of Pennsylvania
|
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Commitments and Contingencies Disclosure [Line Items] | ||
Lawsuit filing date | June 18, 2004 | December 12, 2006 |
Name of plaintiff(s) | Marvin Weinstat, DDS and Richard Nathan, DDS | Carole Hildebrand, DDS and Robert Jaffin, DDS and Dr. Mitchell Goldman |
Class action law suit filed | On June 18, 2004, Marvin Weinstat, DDS and Richard Nathan, DDS filed a class action suit in San Francisco County, California alleging that the Company misrepresented that its Cavitron® ultrasonic scalers are suitable for use in oral surgical procedures. | On December 12, 2006, a Complaint was filed by Carole Hildebrand, DDS and Robert Jaffin, DDS in the Eastern District of Pennsylvania (the Plaintiffs subsequently added Dr. Mitchell Goldman as a named class representative). The case was filed by the same law firm that filed the Weinstat case in California. The Complaint asserts putative class action claims on behalf of dentists located in New Jersey and Pennsylvania. |
BENEFIT PLANS Components of Net Periodic Benefit Cost (Detail) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2012
|
Mar. 31, 2011
|
|
Pension Plans, Defined Benefit
|
||
Service cost | $ 2,978 | $ 2,434 |
Interest cost | 2,691 | 2,187 |
Expected return on plan assets | (1,225) | (1,216) |
Amortization of prior service cost | (37) | 20 |
Amortization of net loss | 498 | 383 |
Net periodic benefit cost | 4,905 | 3,808 |
Other Postretirement Benefit Plans, Defined Benefit
|
||
Service cost | 19 | 16 |
Interest cost | 117 | 138 |
Amortization of net loss | 58 | 49 |
Net periodic benefit cost | $ 194 | $ 203 |
FINANCING ARRANGEMENTS Long-Term Borrowings (Detail) (USD $)
In Millions, unless otherwise specified |
Mar. 31, 2012
|
Dec. 31, 2011
|
---|---|---|
Disclosure - Long-Term Borrowings [Abstract] | ||
Total debt, fair value | $ 1,512.8 | $ 1,512.5 |
Total debt, carrying value | $ 1,482.6 | $ 1,491.4 |
FINANCIAL INSTRUMENTS AND DERIVATIVES Amounts recorded in AOCI related to cash flow hedging instruments (Detail) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Mar. 31, 2012
|
Dec. 31, 2011
|
Mar. 31, 2012
Net Investment Hedging
|
Mar. 31, 2011
Net Investment Hedging
|
Mar. 31, 2012
Cash Flow Hedging
|
Mar. 31, 2011
Cash Flow Hedging
|
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Beginning balance | $ (149,522) | $ (117,390) | $ (143,730) | $ 45,417 | $ (12,737) | $ (1,468) |
Foreign currency translation adjustment | 126,808 | 86,438 | ||||
Changes in fair value of derivatives | (777) | (1,036) | ||||
Changes in fair value of foreign currency debt | 5,324 | 1,014 | ||||
Reclassifications to earnings from equity | (430) | 229 | ||||
Changes in fair value of derivative hedge instruments | (30,926) | (26,205) | ||||
Total activity | 101,206 | 61,247 | (1,207) | (807) | ||
Ending balance | $ (149,522) | $ (117,390) | $ (42,524) | $ 106,664 | $ (13,944) | $ (2,275) |
STOCK COMPENSATION Stock Compensation (Tables)
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3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2012
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STOCK COMPENSATION [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock Based Compensation | The following table represents total stock based compensation expense for non-qualified stock options, restricted stock units (“RSU”) and the tax related benefit for the three months ended March 31, 2012 and 2011:
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Schedule of Share-based Compensation, Stock Options, Activity | The following table reflects the non-qualified stock option transactions from December 31, 2011 through March 31, 2012:
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Schedule of Nonvested Share Activity | The following table summarizes the unvested RSU transactions from December 31, 2011 through March 31, 2012:
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SEGMENT INFORMATION Net Sales (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Mar. 31, 2012
|
Mar. 31, 2011
|
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Net sales | $ 716,413 | $ 570,503 | ||||
Dental Consumable and Laboratrory Businesses [Member]
|
||||||
Net sales | 246,931 | 231,120 | ||||
Orthodontics/Canada/Mexico/Japan [Member]
|
||||||
Net sales | 72,902 | 88,446 | ||||
Select Distribution Businesses [Member]
|
||||||
Net sales | 68,226 | 69,575 | ||||
Implants/Endodontics/Healthcare/Pacific Rim [Member]
|
||||||
Net sales | 329,668 | 182,406 | ||||
All Other
|
||||||
Net sales | $ (1,314) | [1] | $ (1,044) | [1] | ||
|
COMPREHENSIVE INCOME Balances included in AOCI, Net of Tax, in the Consolidated Balance Sheets (Details) (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2012
|
Dec. 31, 2011
|
---|---|---|
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Foreign currency translation adjustments | $ 94,915 | $ (37,216) |
Net loss on derivative financial instruments | (149,522) | (117,390) |
Net unrealized holding gains on available for-sale securities | 22,484 | (516) |
Pension liability adjustments | (34,046) | (33,986) |
Foreign currency translation related to acquisition of noncontrolling interests | (1,862) | (1,862) |
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (68,031) | $ (190,970) |
INCOME TAXES Additional Information (Detail) (USD $)
In Millions, unless otherwise specified |
3 Months Ended |
---|---|
Mar. 31, 2012
|
|
Income Taxes [Line Items] | |
Unrecognized tax benefits, final settlement and resolution of outstanding tax | $ 7.2 |
Future Period Member
|
|
Income Taxes [Line Items] | |
Unrecognized tax benefits, expiration of statues of limitation | $ 0.3 |
STOCK COMPENSATION Stock Compensation (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended |
---|---|
Mar. 31, 2012
Y
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average remaining contractual term (in years) | 6.2 |
Exercisable options, weighted average remaining contractual term (in years) | 5.1 |
Nonqualified Stock Options Member
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unamortized compensation cost | 21.8 |
Weighted average remaining contractual term (in years) | 2.0 |
Performance Based Restricted Stock and Restricted Stock Units
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unamortized compensation cost | 22.8 |
Weighted average remaining contractual term (in years) | 1.9 |
SEGMENT INFORMATION Intersegment Net Sales (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Mar. 31, 2012
|
Mar. 31, 2011
|
|||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Eliminations | $ (153,432) | $ (150,261) | ||||
Total | 0 | 0 | ||||
Dental Consumable and Laboratrory Businesses [Member]
|
||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Intersegment net sales | 48,980 | 48,427 | ||||
Orthodontics/Canada/Mexico/Japan [Member]
|
||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Intersegment net sales | 1,179 | 984 | ||||
Select Distribution Businesses [Member]
|
||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Intersegment net sales | 396 | 345 | ||||
Implants/Endodontics/Healthcare/Pacific Rim [Member]
|
||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Intersegment net sales | 35,740 | 35,985 | ||||
All Other
|
||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Intersegment net sales | $ 67,137 | [1] | $ 64,520 | [1] | ||
|
RESTRUCTURING AND OTHER COSTS Provisions and Adjustments and Amounts Applied for All Plans by Segment (Detail) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended |
---|---|
Mar. 31, 2012
|
|
Restructuring Reserve [Roll Forward] | |
Beginning Balance | $ 5,060 |
Provisions and adjustments | 1,322 |
Amounts applied | (662) |
Ending Balance | 5,720 |
Dental Consumable and Laboratrory Businesses [Member]
|
|
Restructuring Reserve [Roll Forward] | |
Beginning Balance | 3,601 |
Provisions and adjustments | 205 |
Amounts applied | (386) |
Ending Balance | 3,420 |
Orthodontics/Canada/Mexico/Japan [Member]
|
|
Restructuring Reserve [Roll Forward] | |
Beginning Balance | 240 |
Provisions and adjustments | 0 |
Amounts applied | (14) |
Ending Balance | 226 |
Implants/Endodontics/Healthcare/Pacific Rim [Member]
|
|
Restructuring Reserve [Roll Forward] | |
Beginning Balance | 1,219 |
Provisions and adjustments | 1,117 |
Amounts applied | (262) |
Ending Balance | $ 2,074 |
SIGNIFICANT ACCOUNTING POLICIES
|
3 Months Ended |
---|---|
Mar. 31, 2012
|
|
Notes to Financial Statements [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES The accounting policies of the Company, as applied in the interim consolidated financial statements presented herein are substantially the same as presented in the Company’s Form 10-K for the year ended December 31, 2011, except as may be indicated below: Accounts and Notes Receivable-Trade, Net The Company sells dental and certain healthcare products through a worldwide network of distributors and directly to end users. For customers on credit terms, the Company performs ongoing credit evaluations of those customers' financial condition and generally does not require collateral from them. The Company establishes allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments based on historical averages of aged receivable balances and the Company’s experience in collecting those balances, customer specific circumstances, as well as changes in the economic and political environments. The Company records a provision for doubtful accounts, which is included in “Selling, general and administrative expenses.” Accounts and notes receivables – trade, net are stated net of allowances for doubtful accounts and trade discounts, which was $15.9 million at March 31, 2012 and $15.8 million at December 31, 2011. Marketable Securities The Company’s marketable securities consist of corporate convertible bonds that are classified as available-for-sale in “Other noncurrent assets, net” on the consolidated balance sheets as the instruments mature in December 2015. The Company determined the appropriate classification at the time of purchase and will re-evaluate such designation as of each balance sheet date. In addition, the Company reviews the securities each quarter for indications of possible impairment. Once identified, the determination of whether the impairment is temporary or other-than-temporary requires significant judgment. The primary factors that the Company considers in classifying the impairment include the extent and time the fair value of each investment has been below cost and the existence of a credit loss. If a decline in fair value is judged other-than-temporary, the basis of the securities is written down to fair value and the amount of the write-down is included as a realized loss. Changes in fair value are reported in accumulated other comprehensive income (“AOCI”). The convertible feature of the bonds has not been bifurcated from the underlying bonds as the feature does not contain a net-settlement feature, nor would the Company be able to achieve a hypothetical net-settlement that would substantially place the Company in a comparable cash settlement position. As such, the derivative is not accounted for separately from the bond. The cash paid by the Company was equal to the face value of the bonds issued, and therefore, the Company has not recorded any bond premium or discount on acquiring the bonds. The fair value of the bonds was $82.3 million and $47.8 million at March 31, 2012 and December 31, 2011, respectively. At March 31, 2012 and December 31, 2011 an unrealized holding gain of $32.0 million and $11.5 million, respectively, on available-for-sale securities, net of tax, had been recorded in AOCI. New Accounting Pronouncements In June 2011, the Financial Accounting Standards Board (“FASB”) amended its rules regarding the presentation of comprehensive income. The objective of this amendment is to improve the comparability, consistency and transparency of financial reporting and to increase the prominence of items reported in other comprehensive income. Specifically, this amendment requires that all non-owner changes in shareholders' equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The new rules will become effective during interim and annual periods beginning after December 15, 2011, with the exception of the requirement to present reclassification adjustments from other comprehensive income to net income on the face of the financial statements, which has been deferred pending further deliberation by the FASB. Because the standard only impacts the presentation of comprehensive income and does not impact what is included in comprehensive income, the standard will not have a significant impact on the Company's consolidated financial statements. The Company adopted this accounting standard during the quarter ended March 31, 2012. In September 2011, the FASB issued Accounting Standards Update No. 2011-08, “Intangibles – Goodwill and Other (Topic 350): Testing Goodwill for Impairment”("ASU"). This newly issued accounting standard is intended to reduce the cost and complexity of the annual goodwill impairment test by providing entities an option to perform a "qualitative" assessment to determine whether further impairment testing is necessary. Under the revised standard, an entity has the option to first assess qualitative factors to determine whether it is necessary to perform the current two-step impairment test. If an entity believes, as a result of its qualitative assessment, that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is required; otherwise, no further testing is required. Prior to the issuance of the revised standard, an entity was required to perform step one of the impairment test at least annually by calculating and comparing the fair value of a reporting unit to its carrying amount. Under the revised standard, if an entity determines that step one is necessary and the fair value of the reporting unit is less than its carrying amount, then step two of the test will continue to be required to measure the amount of the impairment loss, if any. These amendments do not change the current guidance for testing other indefinite-lived intangible assets for impairment. This ASU is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. The adoption of this standard will not impact the Company’s financial position or results of operations. The Company expects to adopt this standard for the quarter ended June 30, 2012 when the annual goodwill impairment testing is completed. Revisions in Classification Certain revisions in classification have been made to prior year’s data in order to conform to current year presentation. |
FINANCIAL INSTRUMENTS AND DERIVATIVES Additional Information (Detail)
|
3 Months Ended | 3 Months Ended | 3 Months Ended | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2012
USD ($)
group
|
Dec. 31, 2011
USD ($)
|
Mar. 31, 2012
Net Investment Hedging
USD ($)
|
Dec. 31, 2011
Net Investment Hedging
USD ($)
|
Mar. 31, 2011
Net Investment Hedging
USD ($)
|
Dec. 31, 2010
Net Investment Hedging
USD ($)
|
Dec. 31, 2011
Fair Value Hedging
USD ($)
|
Apr. 04, 2011
Fair Value Hedging
USD ($)
|
Mar. 31, 2012
International Subsidiaries
USD ($)
|
Dec. 31, 2011
International Subsidiaries
USD ($)
|
Mar. 31, 2012
Interest Rate Swap
Currency, Japanese Yen
|
Mar. 31, 2012
Interest Rate Swap
Currency, Swiss Franc
|
Mar. 31, 2012
Interest Rate Swap
Cash Flow Hedging
CHF
|
Mar. 31, 2012
Interest Rate Swap
Cash Flow Hedging
JPY (¥)
|
Mar. 31, 2012
Interest Rate Swap
Cash Flow Hedging
Currency, Japanese Yen
|
Mar. 31, 2012
Interest Rate Swap
Cash Flow Hedging
Currency, Swiss Franc
|
Mar. 31, 2012
Commodity Forward Purchase Contracts
Cash Flow Hedging
Platinum Bullion
|
Mar. 31, 2012
Commodity Forward Purchase Contracts
Cash Flow Hedging
Silver Bullion
|
Mar. 31, 2012
Cross Currency Interest Rate Swaps
USD ($)
|
Dec. 31, 2011
Cross Currency Interest Rate Swaps
USD ($)
|
Mar. 31, 2012
Private Placement Notes
Fair Value Hedging
|
Feb. 28, 2010
Private Placement Notes
Fair Value Hedging
USD ($)
|
Mar. 31, 2012
Unsecured Senior Notes
Tranche C
USD ($)
|
|
Derivative [Line Items] | |||||||||||||||||||||||
Maximum Length of Time Hedged in Interest Rate Cash Flow Hedge | 18 months | ||||||||||||||||||||||
Interest Rate Derivatives, at Fair Value, Net | $ 4,800,000 | ||||||||||||||||||||||
Maximum term over which the Company is hedging exposures to variablilty of cash flows related to all forecasted transactions | 2,500,000 | ||||||||||||||||||||||
Notional amounts | 150,000,000 | 65,000,000 | 12,600,000,000 | ||||||||||||||||||||
Average fixed interest rate | 0.20% | 0.70% | |||||||||||||||||||||
Description of derivative activity | swaps in place to purchase 834 troy ounces | swaps in place to purchase 97,250 troy ounces | |||||||||||||||||||||
Average fixed rate price | 1,497 | 28 | |||||||||||||||||||||
Fixed interest rate | 4.10% | ||||||||||||||||||||||
Debt Instrument, Face Amount | 250,000,000 | 450,000,000 | |||||||||||||||||||||
Number of groups of significant interest rate swaps (in groups) | 2 | ||||||||||||||||||||||
Average fixed interest rate, term (in years) | 3 years | 5 years | |||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | (149,522,000) | (117,390,000) | (42,524,000) | (143,730,000) | 106,664,000 | 45,417,000 | 162,000,000 | 111,900,000 | |||||||||||||||
Accumulated translation gains on investments | $ (94,915,000) | $ 37,216,000 | $ 49,200,000 | $ 134,200,000 | |||||||||||||||||||
Debt, maturity term (in years) | 5 years |