Shareholders' Equity and Noncontrolling Interests

9 Months Ended

Sep. 30, 2020

Shareholders' Equity and Noncontrolling Interests

Shareholders' Equity and Noncontrolling Interests

Note 7—Shareholders’ Equity and Noncontrolling Interests

Net income attributable to noncontrolling interests is classified below net income. Earnings per share is determined after the impact of the noncontrolling interests’ share in net income of the Company. In addition, the equity attributable to noncontrolling interests is presented as a separate caption within equity.

A rollforward of consolidated changes in equity for the three months ended September 30, 2020 is as follows:

	Amphenol Corporation Shareholders
											Accumulated
	Common Stock			Treasury Stock							Other
	Shares			Shares			Additional		Retained		Comprehensive		Noncontrolling		Total
	(in millions)	Amount		(in millions)	Amount		Paid-In Capital		Earnings		Loss		Interests		Equity
Balance as of June 30, 2020	298.5	$	0.3	(0.2)	$	(21.0)	$	1,834.5	$	3,419.4	$	(494.6)	$	61.7	$	4,800.3
Net income										346.6				2.9		349.5
Other comprehensive income (loss)												106.2		2.3		108.5
Distributions to shareholders of noncontrolling interests														(1.9)		(1.9)
Purchase of treasury stock				(1.9)		(201.9)										(201.9)
Retirement of treasury stock	(0.9)		—	0.9		91.6				(91.6)						—
Stock options exercised	1.7		—	0.3		34.4		84.6		(12.6)						106.4
Dividends declared ($0.25 per common share)										(74.7)						(74.7)
Stock-based compensation expense								19.0								19.0
Balance as of September 30, 2020	299.3	$	0.3	(0.9)	$	(96.9)	$	1,938.1	$	3,587.1	$	(388.4)	$	65.0	$	5,105.2

A rollforward of consolidated changes in equity for the nine months ended September 30, 2020 is as follows:

	Amphenol Corporation Shareholders
											Accumulated
	Common Stock			Treasury Stock							Other
	Shares			Shares			Additional		Retained		Comprehensive		Noncontrolling		Total
	(in millions)	Amount		(in millions)	Amount		Paid-In Capital		Earnings		Loss		Interests		Equity
Balance as of December 31, 2019	298.7	$	0.3	(0.8)	$	(70.8)	$	1,683.3	$	3,348.4	$	(430.9)	$	65.9	$	4,596.2
Cumulative effect of adoption of credit loss standard (ASU 2016-13)										(3.8)						(3.8)
Net income										846.4				6.7		853.1
Other comprehensive income (loss)												42.5		1.5		44.0
Acquisitions resulting in noncontrolling interest														0.3		0.3
Purchase of noncontrolling interest								(2.1)						(5.2)		(7.3)
Distributions to shareholders of noncontrolling interests														(4.2)		(4.2)
Purchase of treasury stock				(4.6)		(459.2)										(459.2)
Retirement of treasury stock	(3.6)		—	3.6		348.9				(348.9)						—
Stock options exercised	4.2		—	0.9		84.2		205.9		(31.8)						258.3
Dividends declared ($0.75 per common share)										(223.2)						(223.2)
Stock-based compensation expense								51.0								51.0
Balance as of September 30, 2020	299.3	$	0.3	(0.9)	$	(96.9)	$	1,938.1	$	3,587.1	$	(388.4)	$	65.0	$	5,105.2

A rollforward of consolidated changes in equity for the three months ended September 30, 2019 is as follows:

	Amphenol Corporation Shareholders
											Accumulated
	Common Stock			Treasury Stock							Other
	Shares			Shares			Additional		Retained		Comprehensive		Noncontrolling		Total
	(in millions)	Amount		(in millions)	Amount		Paid-In Capital		Earnings		Loss		Interests		Equity
Balance as of June 30, 2019	298.4	$	0.3	(1.2)	$	(101.5)	$	1,541.8	$	3,104.6	$	(396.9)	$	54.9	$	4,203.2
Net income										280.3				2.0		282.3
Other comprehensive income (loss)												(96.8)		(1.9)		(98.7)
Acquisitions resulting in noncontrolling interest														1.2		1.2
Distributions to shareholders of noncontrolling interests														(0.4)		(0.4)
Purchase of treasury stock				(1.7)		(150.0)										(150.0)
Retirement of treasury stock	(1.7)		—	1.7		150.0				(150.0)						—
Stock options exercised	0.5		—	0.1		5.9		27.2		(2.2)						30.9
Dividends declared ($0.25 per common share)										(74.0)						(74.0)
Stock-based compensation expense								16.6								16.6
Balance as of September 30, 2019	297.2	$	0.3	(1.1)	$	(95.6)	$	1,585.6	$	3,158.7	$	(493.7)	$	55.8	$	4,211.1

A rollforward of consolidated changes in equity for the nine months ended September 30, 2019 is as follows:

	Amphenol Corporation Shareholders
											Accumulated
	Common Stock			Treasury Stock							Other
	Shares			Shares			Additional		Retained		Comprehensive		Noncontrolling		Total
	(in millions)	Amount		(in millions)	Amount		Paid-In Capital		Earnings		Loss		Interests		Equity
Balance as of December 31, 2018	299.2	$	0.3	(0.7)	$	(55.0)	$	1,433.2	$	3,028.7	$	(390.2)	$	47.2	$	4,064.2
Net income										836.3				6.9		843.2
Other comprehensive income (loss)												(103.5)		(2.0)		(105.5)
Acquisitions resulting in noncontrolling interest														11.2		11.2
Purchase of noncontrolling interest								(17.5)						(3.9)		(21.4)
Distributions to shareholders of noncontrolling interests														(3.6)		(3.6)
Purchase of treasury stock				(6.1)		(558.7)										(558.7)
Retirement of treasury stock	(5.1)		—	5.1		471.1				(471.1)						—
Stock options exercised	3.1		—	0.6		47.0		123.5		(24.4)						146.1
Dividends declared ($0.71 per common share)										(210.8)						(210.8)
Stock-based compensation expense								46.4								46.4
Balance as of September 30, 2019	297.2	$	0.3	(1.1)	$	(95.6)	$	1,585.6	$	3,158.7	$	(493.7)	$	55.8	$	4,211.1

On April 24, 2018, the Company’s Board of Directors authorized a stock repurchase program under which the Company may purchase up to $2,000.0 of the Company’s Common Stock during the three-year period ending April 24, 2021 (the “2018 Stock Repurchase Program”) in accordance with the requirements of Rule 10b-18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). During the three months ended September 30, 2020, the Company repurchased 1.9 million shares of its Common Stock for $201.9, while during the three months ended September 30, 2019, the Company repurchased 1.7 million shares of its Common Stock for $150.0, all under the 2018 Stock Repurchase Program. During the nine months ended September 30, 2020 and 2019, the Company repurchased 4.6 million and 6.1 million shares of its Common Stock for $459.2 and $558.7, respectively, under the 2018 Stock Repurchase Program. Of the total repurchases during the first nine months of 2020, 1.0 million shares, or $110.3, have been retained in Treasury stock at time of repurchase; the remaining 3.6 million shares, or $348.9, have been retired by the Company. Of the total repurchases during the first nine months of 2019, 1.0 million shares, or $87.6, were retained in Treasury stock at time of repurchase; the remaining 5.1 million shares, or $471.1, were retired by the Company. From October 1, 2020 through October 20, 2020, the Company repurchased approximately 0.1 million additional shares of its Common Stock for $6.0, leaving $379.9 available to purchase under the 2018 Stock Repurchase Program. The price and timing of any future purchases under the 2018 Stock Repurchase Program will depend on a number of factors such as levels of cash generation from operations, the level of uncertainty relating to the COVID-19 pandemic, the volume of stock option exercises by employees, cash requirements for acquisitions, dividends, economic and market conditions and stock price.

Contingent upon declaration by the Board of Directors, the Company generally pays a quarterly dividend on shares of its Common Stock. The following table summarizes the dividends declared and paid for the three and nine months ended September 30, 2020 and 2019:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Dividends declared	$	74.7	$	74.0	$	223.2	$	210.8
Dividends paid (including those declared in the prior year)		74.6		68.3		223.0		205.5

On July 23, 2019, the Company’s Board of Directors approved an increase to its quarterly dividend rate from $0.23 to $0.25 per share effective with dividends declared in the third quarter of 2019, and then on October 20, 2020, approved a further increase to its quarterly dividend rate to $0.29 per share effective with dividends declared in the fourth quarter of 2020.