Minnesota |
41-0907434 | |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification number) | |
1500 County Road B2 West, Suite 400, St. Paul, Minnesota |
55113 | |
(Address of principal executive offices) |
(Zip code) |
Title of each class |
Name of each exchange on which registered | |
Common Shares, $0.16 2/3 par value |
New York Stock Exchange | |
Common Share Purchase Rights |
New York Stock Exchange |
Annual Report on Form 10-K For the Year Ended December 31,
2001 | ||||
PART I | ||||
Page | ||||
ITEM 1. |
|
3 | ||
ITEM 2. |
|
6 | ||
ITEM 3. |
|
6 | ||
ITEM 4. |
|
8 | ||
PART II | ||||
ITEM 5. |
|
9 | ||
ITEM 6. |
|
10 | ||
ITEM 7. |
|
11 | ||
ITEM 7A. |
|
24 | ||
ITEM 8. |
|
25 | ||
ITEM 9. |
|
53 | ||
PART III | ||||
ITEM 10. |
|
53 | ||
ITEM 11. |
|
53 | ||
ITEM 12. |
|
53 | ||
ITEM 13. |
|
53 | ||
PART IV | ||||
ITEM 14. |
|
54 | ||
57 |
|
long-term growth in sales and income; |
|
ongoing cost containment and productivity improvement driven by lean manufacturing initiatives; |
|
new product development and consistent product enhancement; |
|
multi-channel distribution; and |
|
portfolio management of our businesses. |
In thousands |
Century/Lincoln Automotive (1) |
Lincoln Industrial |
Equipment Segment | ||||||
| |||||||||
Cash |
$ |
|
$ |
58,047 |
$ |
58,047 | |||
Short-term notes receivable |
|
18,160 |
|
1,000 |
|
19,160 | |||
Long-term notes receivable |
|
|
|
1,000 |
|
1,000 | |||
Preferred stock |
|
|
|
18,400 |
|
18,400 | |||
| |||||||||
Total proceeds |
$ |
18,160 |
$ |
78,447 |
$ |
96,607 | |||
|
(1) |
Amount received as of the end of 2001 was $12,053. |
|
Tools which manufactures and markets tool products positioned at the mid- to upper-end of the market and targets professionals and upscale hobbyists. Tools
segment products include woodworking machinery, portable power tools, metal and stoneworking tools, compressors, generators, and pressure washers. |
|
Water which manufactures and markets essential products for the transport and treatment of water, wastewater and fluids. Water segment products include
water and wastewater pumps, control valves, pumps and pumping stations for thick fluid transfer applications, storage tanks, filtration systems, and pool and spa accessories. |
|
Enclosures which designs, manufactures, and markets customized and standard metal and composite enclosures that house and protect sensitive controls and
components for markets that include data communications, networking, telecommunications, testing equipment, automotive, and general electronics. Products include metallic and composite enclosures, cabinets, cases, subracks, thermal management
backplanes and power supplies. |
|
Other is primarily composed of corporate expenses, our insurance subsidiary, intermediate finance companies, divested operations, discontinued operations,
and intercompany eliminations. |
In thousands |
2001 |
2000 |
$ change |
% change | |||||||
| |||||||||||
Tools |
$ |
20,700 |
$ |
32,906 |
$ |
(12,206) |
(37.1%) | ||||
Water |
|
93,146 |
|
105,789 |
|
(12,643) |
(12.0%) | ||||
Enclosures |
|
69,579 |
|
118,409 |
|
(48,830) |
(41.2%) | ||||
| |||||||||||
Total |
$ |
183,425 |
$ |
257,104 |
$ |
(73,679) |
(28.7%) | ||||
|
Name |
Age |
Current Position and Business Experience | ||
Randall J. Hogan |
46 |
President and Chief Executive Officer since January 2001; President and Chief Operating Officer, December 1999 December 2000; Executive Vice President and President
of Pentairs Electrical and Electronic Enclosures Group, March 1998 December 1999; President of United Technologies Carrier Transicold Division, February 1995 August 1997. | ||
David D. Harrison |
54 |
Executive Vice President and Chief Financial Officer since February 2000; Executive Vice President and Chief Financial Officer of Scotts Company, August 1999 February
2000; Executive Vice President and Chief Financial Officer of Coltec Industries, August 1996 August 1999; Executive Vice President and Chief Financial Officer of Pentair, Inc., March 1994 July 1996; Senior Executive with General
Electric Technical Services organization, January 1990 March 1994. | ||
Richard J. Cathcart |
57 |
President and Chief Operating Officer of Water Technologies segment since January 2001; Executive Vice President and President of Pentairs Water Technologies Group,
February 1996 December 2000; Executive Vice President, Corporate Development, March 1995 January 1996. | ||
Frank J. Feraco |
55 |
President and Chief Operating Officer of Tools segment since December 2000; President, Textron Industrial Products Segment, 1998 December 2000; President, Kohler
Company International Plumbing Business, 1996 1998; President, Danaher Corp. Tools Group, 1994 1996. | ||
Michael V. Schrock |
49 |
President and Chief Operating Officer of Enclosures segment since October 2001; President, Pentair Water Technologies Americas, January 2001 October 2001;
President, Pentair Pump and Pool Group, August 2000 January 2001; President, Pentair Pump Group, January 1999 August 2000; Vice President and General Manager, Aurora, Fairbanks Morse and Pentair Pump Group International, March 1998
December 1998; Divisional Vice President and General Manager, Honeywell Inc, 1994 1998. | ||
Louis L. Ainsworth |
54 |
Senior Vice President and General Counsel since July 1997 and Secretary since January 2002; Shareholder and Officer of the law firm of Henson & Efron, P.A., November
1985 June 1997. | ||
Karen A. Durant |
42 |
Vice President, Controller since September 1997; Controller, January 1996 August 1997; Assistant Controller, September 1994 December 1995; Director of
Financial Planning and Control of Hoffman Enclosures Inc. (subsidiary of Registrant), October 1989 August 1994. | ||
Debby S. Knutson |
47 |
Vice President, Human Resources since September 1994; Assistant Vice President, Human Resources, August 1993 September 1994; Vice President, Human Resources of
Hoffman Enclosures, Inc. (subsidiary of Registrant), July 1990 August 1993; Director of Human Resources of Hoffman Enclosures, Inc., January 1989 July 1990. |
2001 |
2000 | |||||||||||||||||||||||
First |
Second |
Third |
Fourth |
First |
Second |
Third |
Fourth | |||||||||||||||||
| ||||||||||||||||||||||||
High |
$ |
30.5625 |
$ |
36.4063 |
$ |
38.0469 |
$ |
39.2813 |
$ |
39.4375 |
$ |
44.0000 |
$ |
36.3750 |
$ |
30.5000 | ||||||||
Low |
$ |
22.5000 |
$ |
24.5000 |
$ |
28.8906 |
$ |
29.7344 |
$ |
31.8125 |
$ |
35.3125 |
$ |
23.9375 |
$ |
21.0000 | ||||||||
Close |
$ |
25.4844 |
$ |
33.7969 |
$ |
30.7656 |
$ |
36.5156 |
$ |
37.0625 |
$ |
35.5000 |
$ |
26.7500 |
$ |
24.1875 | ||||||||
Dividends declared |
$ |
0.17 |
$ |
0.17 |
$ |
0.18 |
$ |
0.18 |
$ |
0.16 |
$ |
0.16 |
$ |
0.17 |
$ |
0.17 |
Years ended December 31 |
||||||||||||||||||||||||
Dollars in thousands, except per-share data |
2001 |
2000 |
1999 |
1998 |
1997 |
1996 |
||||||||||||||||||
| ||||||||||||||||||||||||
Statement of operations |
||||||||||||||||||||||||
Net
sales: Tools |
$ |
1,038,606 |
|
$ |
1,066,616 |
|
$ |
875,643 |
|
$ |
661,782 |
|
$ |
573,787 |
|
$ |
478,107 |
| ||||||
Water |
|
887,518 |
|
|
903,672 |
|
|
582,927 |
|
|
441,030 |
|
|
306,047 |
|
|
218,344 |
| ||||||
Enclosures |
|
689,820 |
|
|
777,725 |
|
|
657,500 |
|
|
586,829 |
|
|
600,491 |
|
|
566,919 |
| ||||||
Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
128,136 |
|
|
133,360 |
| ||||||
| ||||||||||||||||||||||||
Total |
|
2,615,944 |
|
|
2,748,013 |
|
|
2,116,070 |
|
|
1,689,641 |
|
|
1,608,461 |
|
|
1,396,730 |
| ||||||
| ||||||||||||||||||||||||
Cost of goods sold |
|
1,967,945 |
|
|
2,051,515 |
|
|
1,529,419 |
|
|
1,227,427 |
|
|
1,189,777 |
|
|
1,032,343 |
| ||||||
Other costs and expenses |
|
450,133 |
|
|
469,679 |
|
|
361,877 |
|
|
297,972 |
|
|
272,578 |
|
|
240,982 |
| ||||||
Restructuring charge |
|
40,105 |
|
|
24,789 |
|
|
23,048 |
|
|
|
|
|
|
|
|
|
| ||||||
Operating income: Tools |
|
63,232 |
|
|
23,751 |
|
|
100,680 |
|
|
80,383 |
|
|
62,669 |
|
|
45,800 |
| ||||||
Water |
|
109,792 |
|
|
120,732 |
|
|
73,362 |
|
|
56,264 |
|
|
32,366 |
|
|
30,562 |
| ||||||
Enclosures |
|
1,857 |
|
|
96,268 |
|
|
46,346 |
|
|
46,026 |
|
|
47,282 |
|
|
53,856 |
| ||||||
Other |
|
(17,120 |
) |
|
(38,721 |
) |
|
(18,662 |
) |
|
(18,431 |
) |
|
3,789 |
|
|
(6,813 |
) | ||||||
| ||||||||||||||||||||||||
Total |
|
157,761 |
|
|
202,030 |
|
|
201,726 |
|
|
164,242 |
|
|
146,106 |
|
|
123,405 |
| ||||||
| ||||||||||||||||||||||||
Gain on sale of business |
|
|
|
|
|
|
|
|
|
|
|
|
|
10,313 |
|
|
|
| ||||||
Net interest expense |
|
61,488 |
|
|
74,899 |
|
|
43,582 |
|
|
19,855 |
|
|
19,729 |
|
|
16,849 |
| ||||||
Other expense, write-off of investment |
|
2,985 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Provision for income taxes |
|
35,772 |
|
|
45,263 |
|
|
60,056 |
|
|
53,667 |
|
|
58,089 |
|
|
42,860 |
| ||||||
Income from continuing operations |
|
57,516 |
|
|
81,868 |
|
|
98,088 |
|
|
90,720 |
|
|
78,601 |
|
|
63,696 |
| ||||||
Income (loss) from discontinued operations, net of tax |
|
|
|
|
(24,759 |
) |
|
5,221 |
|
|
16,120 |
|
|
12,999 |
|
|
10,813 |
| ||||||
Loss on disposal of discontinued operations, net of tax |
|
(24,647 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Cumulative effect of accounting change, net of tax |
|
|
|
|
(1,222 |
) |
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Net income |
|
32,869 |
|
|
55,887 |
|
|
103,309 |
|
|
106,840 |
|
|
91,600 |
|
|
74,509 |
| ||||||
Preferred dividends |
|
|
|
|
|
|
|
|
|
|
(4,267 |
) |
|
(4,867 |
) |
|
(4,928 |
) | ||||||
Income available to common shareholders |
|
32,869 |
|
|
55,887 |
|
|
103,309 |
|
|
102,573 |
|
|
86,733 |
|
|
69,581 |
| ||||||
| ||||||||||||||||||||||||
Common share data |
||||||||||||||||||||||||
Basic EPS continuing operations |
$ |
1.17 |
|
$ |
1.68 |
|
$ |
2.24 |
|
$ |
2.25 |
|
$ |
1.94 |
|
$ |
1.57 |
| ||||||
Basic EPS discontinued operations |
|
(0.50 |
) |
|
(0.51 |
) |
|
0.12 |
|
|
0.42 |
|
|
0.34 |
|
|
0.29 |
| ||||||
Basic EPS cumulative effect of accounting change |
|
|
|
|
(0.02 |
) |
|
|
|
|
|
|
|
|
|
|
|
| ||||||
| ||||||||||||||||||||||||
Basic EPS net income |
|
0.67 |
|
|
1.15 |
|
|
2.36 |
|
|
2.67 |
|
|
2.28 |
|
|
1.86 |
| ||||||
| ||||||||||||||||||||||||
Diluted EPS continuing operations |
|
1.17 |
|
|
1.68 |
|
|
2.21 |
|
|
2.09 |
|
|
1.81 |
|
|
1.47 |
| ||||||
Diluted EPS discontinued operations |
|
(0.50 |
) |
|
(0.51 |
) |
|
0.12 |
|
|
0.37 |
|
|
0.30 |
|
|
0.26 |
| ||||||
Diluted EPS cumulative effect of accounting change |
|
|
|
|
(0.02 |
) |
|
|
|
|
|
|
|
|
|
|
|
| ||||||
| ||||||||||||||||||||||||
Diluted EPS net income |
|
0.67 |
|
|
1.15 |
|
|
2.33 |
|
|
2.46 |
|
|
2.11 |
|
|
1.73 |
| ||||||
| ||||||||||||||||||||||||
Cash dividends declared per common share |
|
0.70 |
|
|
0.66 |
|
|
0.64 |
|
|
0.60 |
|
|
0.54 |
|
|
0.50 |
| ||||||
Stock dividends declared per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
100.0 |
% | ||||||
Book value per common share |
|
20.67 |
|
|
20.75 |
|
|
20.51 |
|
|
16.99 |
|
|
15.04 |
|
|
13.60 |
| ||||||
| ||||||||||||||||||||||||
Balance sheet data |
||||||||||||||||||||||||
Property and equipment, net |
$ |
329,500 |
|
$ |
352,984 |
|
$ |
367,783 |
|
$ |
271,389 |
|
$ |
261,486 |
|
$ |
270,071 |
| ||||||
Total assets |
|
2,372,198 |
|
|
2,644,025 |
|
|
2,706,516 |
|
|
1,484,207 |
|
|
1,413,494 |
|
|
1,236,694 |
| ||||||
Total debt |
|
723,706 |
|
|
913,974 |
|
|
1,035,084 |
|
|
340,721 |
|
|
328,538 |
|
|
312,817 |
| ||||||
Shareholders equity |
|
1,015,002 |
|
|
1,010,591 |
|
|
990,771 |
|
|
707,628 |
|
|
627,653 |
|
|
560,751 |
| ||||||
Debt/total capital |
|
41.6 |
% |
|
47.5 |
% |
|
51.1 |
% |
|
32.5 |
% |
|
34.4 |
% |
|
35.8 |
% | ||||||
Return on average common shareholders equity |
|
3.2 |
% |
|
5.6 |
% |
|
12.6 |
% |
|
16.7 |
% |
|
16.0 |
% |
|
14.4 |
% | ||||||
| ||||||||||||||||||||||||
Other data |
||||||||||||||||||||||||
Depreciation |
$ |
62,674 |
|
$ |
59,897 |
|
$ |
56,081 |
|
$ |
46,571 |
|
$ |
47,577 |
|
$ |
42,620 |
| ||||||
Amortization of intangibles and unearned compensation |
|
41,675 |
|
|
39,131 |
|
|
25,987 |
|
|
15,483 |
|
|
15,240 |
|
|
12,795 |
| ||||||
Capital expenditures |
|
53,668 |
|
|
68,041 |
|
|
53,671 |
|
|
43,335 |
|
|
69,364 |
|
|
67,216 |
| ||||||
Employees of continuing operations |
|
11,700 |
|
|
13,100 |
|
|
12,400 |
|
|
8,800 |
|
|
8,800 |
|
|
8,000 |
| ||||||
|
|
changes in industry conditions, such as: |
|
the strength of product demand; |
|
the intensity of competition; |
|
pricing pressures; |
|
market acceptance of new product introductions; |
|
the introduction of new products by competitors; |
|
our ability to source components from third parties without interruption and at reasonable prices; and |
|
the financial condition of our customers. |
|
changes in our business strategies, including acquisition, divestiture, and restructuring activities; |
|
governmental and regulatory policies; |
|
general economic conditions, such as the rate of economic growth in our principal geographic or product markets or fluctuations in exchange rates;
|
|
changes in operating factors, such as continued improvement in manufacturing activities and the achievement of related efficiencies and inventory risks due to shifts in market
demand; and |
|
our ability to accurately evaluate the effects of contingent liabilities such as taxes, product liability, environmental, and other claims. |
|
accounting for contingencies, under which we accrue an expense when it is probable that a liability has been incurred and the amount can be reasonably estimated;
|
|
measuring assets for impairment; and |
|
accounting for pensions and other post-retirement benefits, because of the importance of management judgment in making the estimates necessary to apply these policies.
|
|
the collectibility of accounts receivable; |
|
the valuation of inventories and reserves to adjust inventory to the lower of cost or market; |
|
estimating sales returns and warranty costs; |
|
self-insurance reserves for product liability, workers compensation, and employee medical liabilities; |
|
assumptions used in the valuation of environmental remediation costs and pending litigation; and |
|
the resolution of matters related to open tax years. |
Percentage point change | ||||||||||||||||
In thousands |
2001 |
2000 |
1999 |
2001 vs. 2000 |
2000 vs. 1999 | |||||||||||
| ||||||||||||||||
Net sales |
$ |
2,615,944 |
|
$ |
2,748,013 |
|
$ |
2,116,070 |
|
|||||||
Cost of goods sold |
|
1,967,945 |
|
|
2,051,515 |
|
|
1,529,419 |
|
|||||||
| ||||||||||||||||
Gross profit |
|
647,999 |
|
|
696,498 |
|
|
586,651 |
|
|||||||
% of net sales |
|
24.8 |
% |
|
25.3 |
% |
|
27.7 |
% |
(0.5) pts |
(2.4) pts | |||||
SG&A and R&D |
|
450,133 |
|
|
469,679 |
|
|
361,877 |
|
|||||||
% of net sales |
|
17.2 |
% |
|
17.1 |
% |
|
17.1 |
% |
0.1 pts |
0.0 pts | |||||
Restructuring charge |
|
40,105 |
|
|
24,789 |
|
|
23,048 |
|
|||||||
% of net sales |
|
1.5 |
% |
|
0.9 |
% |
|
1.1 |
% |
0.6 pts |
(0.2) pts | |||||
| ||||||||||||||||
Operating income |
|
157,761 |
|
|
202,030 |
|
|
201,726 |
|
|||||||
% of net sales |
|
6.0 |
% |
|
7.4 |
% |
|
9.5 |
% |
(1.4) pts |
(2.1) pts | |||||
Net interest expense |
|
61,488 |
|
|
74,899 |
|
|
43,582 |
|
|||||||
% of net sales |
|
2.4 |
% |
|
2.7 |
% |
|
2.1 |
% |
(0.3) pts |
0.6 pts | |||||
Other expense, write-off of investment |
|
2,985 |
|
|
|
|
|
|
|
|||||||
% of net sales |
|
0.1 |
% |
|
n/a |
|
|
n/a |
|
|||||||
| ||||||||||||||||
Income from continuing operations |
||||||||||||||||
before income taxes |
|
93,288 |
|
|
127,131 |
|
|
158,144 |
|
|||||||
% of net sales |
|
3.6 |
% |
|
4.6 |
% |
|
7.5 |
% |
(1.0) pts |
(2.9) pts | |||||
Provision for income taxes |
|
35,772 |
|
|
45,263 |
|
|
60,056 |
|
|||||||
Effective tax rate |
|
38.3 |
% |
|
35.6 |
% |
|
38.0 |
% |
2.7 pts |
(2.4) pts | |||||
| ||||||||||||||||
Income from continuing operations |
|
57,516 |
|
|
81,868 |
|
|
98,088 |
|
|||||||
% of net sales |
|
2.2 |
% |
|
3.0 |
% |
|
4.6 |
% |
(0.8) pts |
(1.6) pts | |||||
Income (loss) from discontinued |
||||||||||||||||
operations, net of tax |
|
|
|
|
(24,759 |
) |
|
5,221 |
|
|||||||
Loss on disposal of discontinued |
||||||||||||||||
operations, net of tax |
|
(24,647 |
) |
|
|
|
|
|
|
|||||||
Cumulative effect of accounting |
||||||||||||||||
change, net of tax |
|
|
|
|
(1,222 |
) |
|
|
|
|||||||
| ||||||||||||||||
Net income |
$ |
32,869 |
|
$ |
55,887 |
|
$ |
103,309 |
|
|||||||
|
Percentages |
2001 vs. 2000 |
2000 vs. 1999 |
||||
| ||||||
Volume |
(4.4 |
) |
32.5 |
| ||
Price |
0.1 |
|
(1.0 |
) | ||
Currency |
(0.5 |
) |
(1.6 |
) | ||
| ||||||
Total |
(4.8 |
) |
29.9 |
| ||
|
2001 vs. 2000 |
2000 vs. 1999 |
||||||||||||||||||
In thousands |
2001 |
2000 |
1999 |
$ change |
% change |
$ change |
% change |
||||||||||||
| |||||||||||||||||||
Tools |
$ |
1,038,606 |
$ |
1,066,616 |
$ |
875,643 |
$ (28,010) |
(2.6%) |
$ |
190,973 |
21.8 |
% | |||||||
Water |
|
887,518 |
|
903,672 |
|
582,927 |
(16,154) |
(1.8%) |
|
320,745 |
55.0 |
% | |||||||
Enclosures |
|
689,820 |
|
777,725 |
|
657,500 |
(87,905) |
(11.3%) |
|
120,225 |
18.3 |
% | |||||||
| |||||||||||||||||||
Total |
$ |
2,615,944 |
$ |
2,748,013 |
$ |
2,116,070 |
$(132,069) |
(4.8%) |
$ |
631,943 |
29.9 |
% | |||||||
|
|
lower sales volume due to the weak economy; and |
|
lower average selling prices in the first nine months of the year, stemming from the mid-2000 price discounting activities, somewhat offset by an increase in realized selling
prices in the fourth quarter of 2001. |
|
the September 1999 acquisition of DeVilbiss Air Power Company (DAPC); and |
|
higher sales volume in our Porter-Cable/Delta business. |
|
lower sales volume in 2000 for generators due to high inventories at distributors and retailers at the end of 1999 and lower storm sales in 2000; and
|
|
lower average selling prices, primarily in our Porter-Cable/Delta business, due to price discounting in some markets on some products in 2000 to recover market share.
|
|
lower sales volume for our industrial pumps and components for large water filtration systems as a weaker economy slowed demand; and |
|
unfavorable impacts of foreign currency translation. |
|
higher sales volume in our pool and spa equipment business as we increased our market share. |
|
the August 1999 acquisition of the pressure vessel and pool and spa equipment businesses of Essef Corporation; and |
|
higher sales volume in our pump and valve businesses due to increased demand. |
|
unfavorable impacts of foreign currency translation. |
|
lower sales volume attributable to sharp declines in all enclosures markets, somewhat offset by increased sales due to the expansion in the number of Hoffman distributors; and
|
|
unfavorable impacts of foreign currency translation. |
|
higher sales volume due to strong demand for our products in the telecom and datacom markets and with industrial original equipment manufacturers.
|
|
unfavorable impacts of foreign currency translation. Excluding the impacts of foreign currency translation, 2000 Enclosures segment sales increased by 22 percent over 1999.
|
2001 |
||||||||||||
In thousands |
Gross profit |
SG&A and R&D |
Operating income |
|||||||||
| ||||||||||||
Reported results |
$ |
647,999 |
|
$ |
450,133 |
|
$ |
157,761 |
| |||
Restructuring charge |
|
955 |
|
|
|
|
|
41,060 |
| |||
| ||||||||||||
Results excluding special items |
$ |
648,954 |
|
$ |
450,133 |
|
$ |
198,821 |
| |||
| ||||||||||||
% of net sales |
|
24.8 |
% |
|
17.2 |
% |
|
7.6 |
% | |||
2000 |
||||||||||||
In thousands |
Gross profit |
SG&A and R&D |
Operating income |
|||||||||
| ||||||||||||
Reported results |
$ |
696,498 |
|
$ |
469,679 |
|
$ |
202,030 |
| |||
Restructuring charge |
|
|
|
|
|
|
|
24,789 |
| |||
Establish additional accounts receivable reserve |
|
|
|
|
22,000 |
|
|
22,000 |
| |||
Establish additional inventory reserve |
|
8,000 |
|
|
|
|
|
8,000 |
| |||
| ||||||||||||
Results excluding special items |
$ |
704,498 |
|
$ |
447,679 |
|
$ |
256,819 |
| |||
| ||||||||||||
% of net sales |
|
25.6 |
% |
|
16.3 |
% |
|
9.3 |
% | |||
1999 |
||||||||||||
In thousands |
Gross profit |
SG&A and R&D |
Operating income |
|||||||||
| ||||||||||||
Reported results |
$ |
586,651 |
|
$ |
361,877 |
|
$ |
201,726 |
| |||
Restructuring charge |
|
|
|
|
|
|
|
23,048 |
| |||
| ||||||||||||
Results excluding special items |
$ |
586,651 |
|
$ |
361,877 |
|
$ |
224,774 |
| |||
| ||||||||||||
% of net sales |
|
27.7 |
% |
|
17.1 |
% |
|
10.6 |
% |
|
sharply lower sales volume and unfavorable product mix in our Enclosures segment, partially offset by improved gross margins in our Tools segment due to material price savings
and other cost reduction programs. |
|
lower sales volume for generators in our DAPC business; |
|
lower average selling prices due to price discounting to recover market share in our Porter-Cable/Delta business; |
|
unfavorable product mix in our Tools and Enclosures segments; |
|
unfavorable inventory variances, primarily in our Porter-Cable/Delta business; and |
|
higher costs due to challenges encountered in the setup of our new inventory distribution center for our Porter-Cable/Delta business in January 2000.
|
|
an 11.3 percent decline in 2001 Enclosures segment sales, compared with only a 2.0 percent decrease in their SG&A and R&D expenses due to more restrictive short-term
opportunities for cost reductions, especially in Europe; and |
|
investments to redefine and streamline company-wide business processes in the areas of supply chain management and lean enterprise, which we expect will improve our future
overall cost structure. |
|
the Water and Enclosures sales growth in 2000 outpacing the growth in SG&A and increased R&D spending. |
|
higher advertising and selling expenses in our Tools segment. |
In thousands |
Employee termination benefits |
Non-cash asset disposals |
Impaired goodwill |
Exit costs |
Total |
|||||||||||||||
| ||||||||||||||||||||
1999 restructuring charge (first quarter) |
$ |
21,288 |
|
$ |
1,100 |
|
$ |
|
|
$ |
660 |
|
$ |
23,048 |
| |||||
Utilization of 1999 restructuring charge |
|
(8,678 |
) |
|
|
|
|
|
|
|
(167 |
) |
|
(8,845 |
) | |||||
| ||||||||||||||||||||
December 31, 1999 liability |
|
12,610 |
|
|
1,100 |
|
|
|
|
|
493 |
|
|
14,203 |
| |||||
Change in estimate (first quarter) |
|
(9,110 |
) |
|
|
|
|
|
|
|
602 |
|
|
(8,508 |
) | |||||
2000 restructuring charge (first quarter) |
|
800 |
|
|
915 |
|
|
2,985 |
|
|
1,340 |
|
|
6,040 |
| |||||
Change in estimate (fourth quarter) |
|
747 |
|
|
42 |
|
|
|
|
|
(332 |
) |
|
457 |
| |||||
2000 restructuring charge (fourth quarter) |
|
7,888 |
|
|
10,518 |
|
|
|
|
|
8,394 |
|
|
26,800 |
| |||||
Utilization of 1999 and 2000 restructuring charges |
|
(5,047 |
) |
|
(12,575 |
) |
|
(2,985 |
) |
|
(2,190 |
) |
|
(22,797 |
) | |||||
| ||||||||||||||||||||
December 31, 2000 liability |
|
7,888 |
|
|
|
|
|
|
|
|
8,307 |
|
|
16,195 |
| |||||
Change in estimate (fourth quarter) |
|
991 |
|
|
|
|
|
|
|
|
(2,688 |
) |
|
(1,697 |
) | |||||
2001 restructuring charge (fourth quarter) |
|
16,696 |
|
|
11,050 |
|
|
7,362 |
|
|
7,649 |
|
|
42,757 |
| |||||
Utilization of 2000 and 2001 restructuring charges |
|
(11,343 |
) |
|
(11,050 |
) |
|
(7,362 |
) |
|
(6,388 |
) |
|
(36,143 |
) | |||||
| ||||||||||||||||||||
December 31, 2001 liability |
$ |
14,232 |
|
$ |
|
|
$ |
|
|
$ |
6,880 |
|
$ |
21,112 |
| |||||
|
In thousands |
Tools |
Enclosures |
Other |
Total | |||||||||||
| |||||||||||||||
Employee termination benefits |
$ |
5,105 |
|
$ |
16,183 |
|
$ |
|
|
$ |
21,288 | ||||
Non-cash asset disposals |
|
1,100 |
|
|
|
|
|
|
|
|
1,100 | ||||
Facility exit costs |
|
100 |
|
|
560 |
|
|
|
|
|
660 | ||||
| |||||||||||||||
1999 restructuring charge |
$ |
6,305 |
|
$ |
16,743 |
|
$ |
|
|
$ |
23,048 | ||||
| |||||||||||||||
Employee termination benefits |
$ |
(96 |
) |
$ |
(6,064 |
) |
$ |
6,485 |
|
$ |
325 | ||||
Non-cash asset disposals |
|
(55 |
) |
|
1,012 |
|
|
10,518 |
|
|
11,475 | ||||
Impaired goodwill |
|
|
|
|
2,985 |
|
|
|
|
|
2,985 | ||||
Exit costs |
|
5,547 |
|
|
442 |
|
|
4,015 |
|
|
10,004 | ||||
| |||||||||||||||
2000 restructuring charge |
$ |
5,396 |
|
$ |
(1,625 |
) |
$ |
21,018 |
|
$ |
24,789 | ||||
| |||||||||||||||
Employee termination benefits |
$ |
|
|
$ |
16,696 |
|
$ |
991 |
|
$ |
17,687 | ||||
Non-cash asset disposals |
|
|
|
|
7,675 |
|
|
3,375 |
|
|
11,050 | ||||
Impaired goodwill |
|
|
|
|
7,362 |
|
|
|
|
|
7,362 | ||||
Exit costs |
|
|
|
|
7,649 |
|
|
(2,688 |
) |
|
4,961 | ||||
| |||||||||||||||
2001 restructuring charge |
$ |
|
|
$ |
39,382 |
|
$ |
1,678 |
|
$ |
41,060 | ||||
|
Percentage point change | ||||||||||||||||
In thousands |
2001 |
2000 |
1999 |
2001 vs. 2000 |
2000 vs. 1999 | |||||||||||
| ||||||||||||||||
Tools (1) |
$ |
63,232 |
|
$ |
23,751 |
|
$ |
100,680 |
|
|||||||
% of net sales |
|
6.1 |
% |
|
2.2 |
% |
|
11.5 |
% |
3.9 pts |
(9.3) pts | |||||
Water |
|
109,792 |
|
|
120,732 |
|
|
73,362 |
|
|||||||
% of net sales |
|
12.4 |
% |
|
13.4 |
% |
|
12.6 |
% |
(1.0) pts |
0.8 pts | |||||
Enclosures (2) |
|
1,857 |
|
|
96,268 |
|
|
46,346 |
|
|||||||
% of net sales |
|
0.3 |
% |
|
12.4 |
% |
|
7.0 |
% |
(12.1) pts |
5.4 pts | |||||
Corporate/other (3) |
|
(17,120 |
) |
|
(38,721 |
) |
|
(18,662 |
) |
|||||||
| ||||||||||||||||
Total |
$ |
157,761 |
|
$ |
202,030 |
|
$ |
201,726 |
|
|||||||
| ||||||||||||||||
% of net sales |
|
6.0 |
% |
|
7.4 |
% |
|
9.5 |
% |
(1.4) pts |
(2.1) pts |
(1) |
Tools segment operating income includes restructuring charge expense of $5.4 million in 2000 and $6.3 million in 1999. Operating income also reflects one-time pre-tax costs to
establish an additional $30.0 million in accounts receivable ($5.0 million in the second quarter of 2000 and $17.0 million in the fourth quarter of 2000) and inventory ($8.0 million in the fourth quarter of 2000) reserves.
|
(2) |
Enclosures segment operating income includes restructuring charge expense (income) of $39.4 million in 2001, $(1.6) million in 2000 (due to a change in estimate of the 1999
restructuring liability), and $16.7 million in 1999. |
(3) |
Includes restructuring charge expense of $1.7 million in 2001 and $21.0 million in 2000. |
In thousands |
2001 |
2000 |
1999 |
|||||||||
| ||||||||||||
Tools |
||||||||||||
Operating income as reported |
$ |
63,232 |
|
$ |
23,751 |
|
$ |
100,680 |
| |||
Restructuring charge |
|
|
|
|
5,396 |
|
|
6,305 |
| |||
Establish additional accounts receivable reserve |
|
|
|
|
22,000 |
|
|
|
| |||
Establish additional inventory reserve |
|
|
|
|
8,000 |
|
|
|
| |||
| ||||||||||||
Operating income excluding special items |
$ |
63,232 |
|
$ |
59,147 |
|
$ |
106,985 |
| |||
| ||||||||||||
% of net sales |
|
6.1 |
% |
|
5.5 |
% |
|
12.2 |
% | |||
Percentage point change |
|
0.6 |
pts |
|
(6.7 |
) pts |
|
cost savings from our supply chain management and lean enterprise initiatives. |
|
lower sales volume due to the weak economy; |
|
lower average selling prices in the first nine months of the year, stemming from the mid-2000 price discounting activities, offset by an increase in realized selling prices in
the fourth quarter of 2001; |
|
higher warranty costs; and |
|
unfavorable pension costs due to lower returns on pension assets. |
|
lower sales volume for generators and a change in product mix in our Porter-Cable/Delta business; and |
|
lower average selling prices due to price discounting to recover market share. |
In thousands |
2001 |
2000 |
1999 |
|||||||||
| ||||||||||||
Water |
||||||||||||
Operating income as reported |
$ |
109,792 |
|
$ |
120,732 |
|
$ |
73,362 |
| |||
% of net sales |
|
12.4 |
% |
|
13.4 |
% |
|
12.6 |
% | |||
Percentage point change |
|
(1.0 |
) pts |
|
0.8 |
pts |
|
lower sales volume in our higher margin pump and water treatment businesses, which have been more directly affected by the economic slowdown. |
|
higher sales volume in our pool and spa equipment business as we increased our market share. |
|
improved margins in the pool and spa equipment businesses acquired in August 1999; |
|
increased volume for pumps and valves; and |
|
material cost savings as a result of supply management initiatives coupled with increased labor productivity. |
|
unfavorable impacts of foreign currency translation. |
In thousands |
2001 |
2000 |
1999 |
|||||||||
| ||||||||||||
Enclosures |
||||||||||||
Operating income as reported |
$ |
1,857 |
|
$ |
96,268 |
|
$ |
46,346 |
| |||
Restructuring charge (income) |
|
39,382 |
|
|
(1,625 |
) |
|
16,743 |
| |||
| ||||||||||||
Operating income excluding special items |
$ |
41,239 |
|
$ |
94,643 |
|
$ |
63,089 |
| |||
| ||||||||||||
% of net sales |
|
6.0 |
% |
|
12.2 |
% |
|
9.6 |
% | |||
Percentage point change |
|
(6.2 |
) pts |
|
2.6 |
pts |
|
lower sales volume, attributable to sharp declines in all enclosures markets; |
|
unfavorable product mix; and |
|
unfavorable pension costs due to lower returns on pension assets. |
|
lower costs, primarily due to headcount reductions. |
|
higher sales volume due to strong demand for our products in the telecom and datacom markets and with industrial original equipment manufacturers.
|
|
unfavorable product mix; and |
|
unfavorable impacts of foreign currency translation in 2000. |
In thousands |
Century/Lincoln Automotive (1) |
Lincoln Industrial |
Equipment Segment | ||||||
| |||||||||
Cash |
$ |
|
$ |
58,047 |
$ |
58,047 | |||
Short-term notes receivable |
|
18,160 |
|
1,000 |
|
19,160 | |||
Long-term notes receivable |
|
|
|
1,000 |
|
1,000 | |||
Preferred stock |
|
|
|
18,400 |
|
18,400 | |||
| |||||||||
Total proceeds |
$ |
18,160 |
$ |
78,447 |
$ |
96,607 | |||
|
(1) |
Amount received as of the end of 2001 was $12,053. |
Days |
December 31 2001 |
December 31 2000 | ||
| ||||
Days of sales in accounts receivable |
64 |
70 | ||
Days inventory on hand |
75 |
80 | ||
Days in accounts payable |
59 |
59 | ||
Cash conversion cycle |
80 |
91 |
Contractual obligations |
Payments due by period | ||||||||||||||
In thousands |
Within 1 year |
2-3 years |
4-5 years |
After 5 years |
Total | ||||||||||
| |||||||||||||||
Long-term debt, including current maturities |
$ |
8,729 |
$ |
426,706 |
$ |
1,784 |
$ |
286,487 |
$ |
723,706 | |||||
Operating leases, net of sublease rentals |
|
25,288 |
|
30,950 |
|
13,199 |
|
5,962 |
|
75,399 | |||||
Other long-term obligations |
|
3,061 |
|
6,446 |
|
7,109 |
|
5,130 |
|
21,746 | |||||
| |||||||||||||||
Total contractual cash obligations, net |
$ |
37,078 |
$ |
464,102 |
$ |
22,092 |
$ |
297,579 |
$ |
820,851 | |||||
|
Expected year of maturity |
||||||||||||||||||||||||||||||||
Dollars in thousands |
2002 |
2003 |
2004 |
2005 |
2006 |
Thereafter |
Total |
Fair value |
||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Long-term debt, including current portion |
||||||||||||||||||||||||||||||||
Variable rate |
$ |
|
|
$ |
|
|
$ |
254,500 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
254,500 |
|
$ |
254,500 |
| ||||||||
Average interest rate |
|
|
|
|
|
|
|
3.21 |
% |
|
|
|
|
|
|
|
|
|
|
3.21 |
% |
|||||||||||
Fixed rate |
$ |
8,729 |
|
$ |
53,943 |
|
$ |
118,263 |
|
$ |
1,749 |
|
$ |
35 |
|
$ |
286,487 |
|
$ |
469,206 |
|
$ |
470,940 |
| ||||||||
Average interest rate |
|
6.96 |
% |
|
6.70 |
% |
|
7.25 |
% |
|
7.00 |
% |
|
7.00 |
% |
|
7.74 |
% |
|
7.48 |
% |
|||||||||||
Portion subject to interest rate swaps |
||||||||||||||||||||||||||||||||
Variable to fixed |
$ |
19,500 |
|
$ |
15,000 |
|
$ |
20,000 |
|
$ |
20,000 |
|
$ |
|
|
$ |
|
|
$ |
74,500 |
|
$ |
(3,453 |
) | ||||||||
Average rate to be received |
|
2.00 |
% |
|
4.40 |
% |
|
5.80 |
% |
|
6.20 |
% |
|
|
|
|
|
|
|
4.42 |
% |
|||||||||||
Average rate to be paid |
|
6.31 |
% |
|
6.31 |
% |
|
6.31 |
% |
|
6.31 |
% |
|
|
|
|
|
|
|
6.31 |
% |
|||||||||||
Foreign currency risk We have entered into foreign
currency swap agreements with a major financial institution to hedge firm foreign currency commitments. As of December 31, 2001, the following table presents principal cash flows of our open currency swap agreements: | ||||||||||||||||||||||||||||||||
Expected year of maturity |
||||||||||||||||||||||||||||||||
In thousands |
2002 |
2003 |
2004 |
2005 |
2006 |
Thereafter |
Total |
Fair value |
||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Forward exchange agreements (1) |
||||||||||||||||||||||||||||||||
Receive U.S. dollars |
$ |
|
|
$ |
50,000 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
50,000 |
|
$ |
7,209 |
| ||||||||
Pay Canadian dollars |
|
|
|
|
69,385 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
69,385 |
|
|||||||||||
Receive Canadian dollars |
$ |
|
|
$ |
69,385 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
69,385 |
|
$ |
4,171 |
| ||||||||
Pay Euros |
|
|
|
|
45,313 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
45,313 |
|
|||||||||||
|
|
| ||||||||||||||||||||||||||||||
Total exchange gain |
$ |
11,380 |
| |||||||||||||||||||||||||||||
|
|
|
(1) |
Foreign exchange information is presented in local currency by maturity, however, the fair value is presented in U.S. dollars |
|
|
Randall J. Hogan |
David D. Harrison | |
President and Chief Executive Officer |
Executive Vice President and Chief Financial Officer |
|
Years ended December 31 | ||||||||||
In thousands, except per-share data |
2001 |
2000 |
1999 | ||||||||
| |||||||||||
Net sales |
$ |
2,615,944 |
|
$ |
2,748,013 |
|
$ |
2,116,070 | |||
Cost of goods sold |
|
1,967,945 |
|
|
2,051,515 |
|
|
1,529,419 | |||
| |||||||||||
Gross profit |
|
647,999 |
|
|
696,498 |
|
|
586,651 | |||
Selling, general and administrative |
|
418,962 |
|
|
438,488 |
|
|
339,707 | |||
Research and development |
|
31,171 |
|
|
31,191 |
|
|
22,170 | |||
Restructuring charge |
|
40,105 |
|
|
24,789 |
|
|
23,048 | |||
| |||||||||||
Operating income |
|
157,761 |
|
|
202,030 |
|
|
201,726 | |||
Interest income |
|
960 |
|
|
1,488 |
|
|
1,472 | |||
Interest expense |
|
62,448 |
|
|
76,387 |
|
|
45,054 | |||
Other expense, write-off of investment |
|
2,985 |
|
|
|
|
|
| |||
| |||||||||||
Income from continuing operations before income taxes |
|
93,288 |
|
|
127,131 |
|
|
158,144 | |||
Provision for income taxes |
|
35,772 |
|
|
45,263 |
|
|
60,056 | |||
| |||||||||||
Income from continuing operations |
|
57,516 |
|
|
81,868 |
|
|
98,088 | |||
Income (loss) from discontinued operations, net of tax |
|
|
|
|
(24,759 |
) |
|
5,221 | |||
Loss on disposal of discontinued operations, net of tax |
|
(24,647 |
) |
|
|
|
|
| |||
Cumulative effect of accounting change, net of tax |
|
|
|
|
(1,222 |
) |
|
| |||
| |||||||||||
Net income |
$ |
32,869 |
|
$ |
55,887 |
|
$ |
103,309 | |||
| |||||||||||
Earnings per common share |
|||||||||||
Basic |
|||||||||||
Continuing operations |
$ |
1.17 |
|
$ |
1.68 |
|
$ |
2.24 | |||
Discontinued operations |
|
(0.50 |
) |
|
(0.51 |
) |
|
0.12 | |||
Cumulative effect of accounting change |
|
|
|
|
(0.02 |
) |
|
| |||
| |||||||||||
Basic earnings per common share |
$ |
0.67 |
|
$ |
1.15 |
|
$ |
2.36 | |||
| |||||||||||
Diluted |
|||||||||||
Continuing operations |
$ |
1.17 |
|
$ |
1.68 |
|
$ |
2.21 | |||
Discontinued operations |
|
(0.50 |
) |
|
(0.51 |
) |
|
0.12 | |||
Cumulative effect of accounting change |
|
|
|
|
(0.02 |
) |
|
| |||
| |||||||||||
Diluted earnings per common share |
$ |
0.67 |
|
$ |
1.15 |
|
$ |
2.33 | |||
| |||||||||||
Pro forma amounts assuming the accounting change is applied retroactively |
|||||||||||
Continuing operations |
$ |
57,516 |
|
$ |
81,868 |
|
$ |
97,514 | |||
Discontinued operations |
|
(24,647 |
) |
|
(24,759 |
) |
|
5,221 | |||
| |||||||||||
Net income |
$ |
32,869 |
|
$ |
57,109 |
|
$ |
102,735 | |||
| |||||||||||
Pro forma earnings per common share |
|||||||||||
Basic |
|||||||||||
Continuing operations |
$ |
1.17 |
|
$ |
1.68 |
|
$ |
2.23 | |||
Discontinued operations |
|
(0.50 |
) |
|
(0.51 |
) |
|
0.12 | |||
| |||||||||||
Basic earnings per common share |
$ |
0.67 |
|
$ |
1.17 |
|
$ |
2.35 | |||
| |||||||||||
Diluted |
|||||||||||
Continuing operations |
$ |
1.17 |
|
$ |
1.68 |
|
$ |
2.20 | |||
Discontinued operations |
|
(0.50 |
) |
|
(0.51 |
) |
|
0.12 | |||
| |||||||||||
Diluted earnings per common share |
$ |
0.67 |
|
$ |
1.17 |
|
$ |
2.32 | |||
| |||||||||||
Weighted average common shares outstanding |
|||||||||||
Basic |
|
49,047 |
|
|
48,544 |
|
|
43,803 | |||
Diluted |
|
49,297 |
|
|
48,645 |
|
|
44,287 |
December 31 |
||||||||
In thousands, except share and per-share data |
2001 |
2000 |
||||||
| ||||||||
Assets | ||||||||
Current assets |
||||||||
Cash and cash equivalents |
$ |
39,844 |
|
$ |
34,944 |
| ||
Accounts and notes receivable, net of allowance of $14,142 and $18,636, respectively |
|
398,579 |
|
|
468,081 |
| ||
Inventories |
|
300,923 |
|
|
392,495 |
| ||
Deferred income taxes |
|
69,953 |
|
|
72,577 |
| ||
Prepaid expenses and other current assets |
|
20,979 |
|
|
22,442 |
| ||
Net assets of discontinued operations |
|
5,325 |
|
|
101,263 |
| ||
| ||||||||
Total current assets |
|
835,603 |
|
|
1,091,802 |
| ||
Property, plant and equipment, net |
|
329,500 |
|
|
352,984 |
| ||
Other assets |
||||||||
Goodwill, net |
|
1,088,206 |
|
|
1,141,102 |
| ||
Other |
|
118,889 |
|
|
58,137 |
| ||
| ||||||||
Total other assets |
|
1,207,095 |
|
|
1,199,239 |
| ||
| ||||||||
Total assets |
$ |
2,372,198 |
|
$ |
2,644,025 |
| ||
| ||||||||
Liabilities and Shareholders Equity
| ||||||||
Current liabilities |
||||||||
Short-term borrowings |
$ |
|
|
$ |
108,141 |
| ||
Current maturities of long-term debt |
|
8,729 |
|
|
23,999 |
| ||
Accounts and notes payable |
|
179,149 |
|
|
250,088 |
| ||
Employee compensation and benefits |
|
74,888 |
|
|
84,197 |
| ||
Accrued product claims and warranties |
|
37,590 |
|
|
42,189 |
| ||
Income taxes |
|
6,252 |
|
|
5,487 |
| ||
Other current liabilities |
|
121,825 |
|
|
134,691 |
| ||
| ||||||||
Total current liabilities |
|
428,433 |
|
|
648,792 |
| ||
Long-term debt |
|
714,977 |
|
|
781,834 |
| ||
Pension and other retirement compensation |
|
74,263 |
|
|
59,313 |
| ||
Postretirement medical and other benefits |
|
43,583 |
|
|
34,213 |
| ||
Deferred income taxes |
|
34,128 |
|
|
37,133 |
| ||
Other noncurrent liabilities |
|
61,812 |
|
|
72,149 |
| ||
| ||||||||
Total liabilities |
|
1,357,196 |
|
|
1,633,434 |
| ||
Commitments and contingencies |
||||||||
Shareholders equity |
||||||||
Common shares par value $0.16 2/3; |
||||||||
49,110,859 and 48,711,955 shares issued and outstanding, respectively |
|
8,193 |
|
|
8,119 |
| ||
Additional paid-in capital |
|
478,541 |
|
|
468,425 |
| ||
Retained earnings |
|
566,626 |
|
|
568,084 |
| ||
Unearned restricted stock compensation |
|
(9,440 |
) |
|
(7,285 |
) | ||
Accumulated other comprehensive loss |
|
(28,918 |
) |
|
(26,752 |
) | ||
| ||||||||
Total shareholders equity |
|
1,015,002 |
|
|
1,010,591 |
| ||
| ||||||||
Total liabilities and shareholders equity |
$ |
2,372,198 |
|
$ |
2,644,025 |
| ||
|
Years ended December 31 |
||||||||||||
In thousands |
2001 |
2000 |
1999 |
|||||||||
| ||||||||||||
Operating activities |
||||||||||||
Net income |
$ |
32,869 |
|
$ |
55,887 |
|
$ |
103,309 |
| |||
Depreciation |
|
62,674 |
|
|
59,897 |
|
|
56,081 |
| |||
Amortization of intangibles and unearned compensation |
|
41,675 |
|
|
39,131 |
|
|
25,987 |
| |||
Deferred income taxes |
|
(5,315 |
) |
|
9,735 |
|
|
(1,954 |
) | |||
Restructuring charge |
|
41,060 |
|
|
24,789 |
|
|
23,048 |
| |||
Other expense, write-off of investment |
|
2,985 |
|
|
|
|
|
|
| |||
Loss on disposal of discontinued operations |
|
24,647 |
|
|
|
|
|
|
| |||
Cumulative effect of accounting change |
|
|
|
|
1,222 |
|
|
|
| |||
Changes in assets and liabilities, net of effects of business acquisitions and dispositions |
||||||||||||
Accounts and notes receivable |
|
70,890 |
|
|
17,908 |
|
|
(28,282 |
) | |||
Inventories |
|
87,840 |
|
|
(45,893 |
) |
|
(26,449 |
) | |||
Prepaid expenses and other current assets |
|
653 |
|
|
(9,588 |
) |
|
7,779 |
| |||
Accounts payable |
|
(69,321 |
) |
|
32,973 |
|
|
26,423 |
| |||
Employee compensation and benefits |
|
(13,185 |
) |
|
(10,810 |
) |
|
32,660 |
| |||
Accrued product claims and warranties |
|
(4,468 |
) |
|
(6,318 |
) |
|
8,344 |
| |||
Income taxes |
|
9,942 |
|
|
(8,467 |
) |
|
(4,462 |
) | |||
Other current liabilities |
|
(50,758 |
) |
|
(17,715 |
) |
|
(48,076 |
) | |||
Pension and post-retirement benefits |
|
17,199 |
|
|
5,353 |
|
|
953 |
| |||
Other assets and liabilities |
|
(7,205 |
) |
|
(7,296 |
) |
|
(18,791 |
) | |||
| ||||||||||||
Net cash provided by continuing operations |
|
242,182 |
|
|
140,808 |
|
|
156,570 |
| |||
Net cash provided by (used for) discontinued operations |
|
(9,848 |
) |
|
44,139 |
|
|
(12,274 |
) | |||
| ||||||||||||
Net cash provided by operating activities |
|
232,334 |
|
|
184,947 |
|
|
144,296 |
| |||
Investing activities |
||||||||||||
Capital expenditures |
|
(53,668 |
) |
|
(68,041 |
) |
|
(53,671 |
) | |||
Proceeds from sale of businesses |
|
70,100 |
|
|
|
|
|
|
| |||
Acquisitions, net of cash acquired |
|
(1,937 |
) |
|
|
|
|
(953,124 |
) | |||
Equity investments |
|
(25,438 |
) |
|
|
|
|
|
| |||
Other |
|
(186 |
) |
|
(32 |
) |
|
1,664 |
| |||
| ||||||||||||
Net cash used for investing activities |
|
(11,129 |
) |
|
(68,073 |
) |
|
(1,005,131 |
) | |||
Financing activities |
||||||||||||
Net short-term borrowings (repayments) |
|
(108,336 |
) |
|
(42,471 |
) |
|
150,612 |
| |||
Proceeds from long-term debt |
|
2,811 |
|
|
8,108 |
|
|
351,297 |
| |||
Repayment of long-term debt |
|
(84,525 |
) |
|
(82,271 |
) |
|
(59,814 |
) | |||
Proceeds from long-term bonds |
|
|
|
|
|
|
|
250,000 |
| |||
Debt issuance costs |
|
|
|
|
|
|
|
(2,430 |
) | |||
Proceeds from bridge loans |
|
|
|
|
|
|
|
450,000 |
| |||
Repayment of bridge loans |
|
|
|
|
|
|
|
(450,000 |
) | |||
Proceeds from exercise of stock options |
|
2,913 |
|
|
3,100 |
|
|
4,454 |
| |||
Proceeds from issuance of common stock, net |
|
|
|
|
774 |
|
|
214,480 |
| |||
Repurchases of common stock |
|
(1,458 |
) |
|
(410 |
) |
|
(4,030 |
) | |||
Dividends paid |
|
(34,327 |
) |
|
(32,038 |
) |
|
(28,201 |
) | |||
| ||||||||||||
Net cash provided by (used for) financing activities |
|
(222,922 |
) |
|
(145,208 |
) |
|
876,368 |
| |||
Effect of exchange rate changes on cash |
|
6,617 |
|
|
263 |
|
|
18,344 |
| |||
| ||||||||||||
Change in cash and cash equivalents |
|
4,900 |
|
|
(28,071 |
) |
|
33,877 |
| |||
Cash and cash equivalents, beginning of period |
|
34,944 |
|
|
63,015 |
|
|
29,138 |
| |||
| ||||||||||||
Cash and cash equivalents, end of period |
$ |
39,844 |
|
$ |
34,944 |
|
$ |
63,015 |
| |||
|
In thousands, except share and per-share data |
Preferred shares |
Common shares |
Additional paid-in capital |
Retained earnings |
Unearned restricted stock compensation |
Accumulated other comprehensive loss |
Total |
Comprehensive income |
||||||||||||||||||||||||||||||
Number |
Amount |
Number |
Amount |
|||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Balance December 31, 1998 |
1,534,919 |
|
$ |
53,638 |
|
38,503,587 |
|
$ |
6,417 |
|
$ |
184,145 |
|
$ |
469,127 |
|
$ |
(1,737 |
) |
$ |
(3,962 |
) |
$ |
707,628 |
|
|||||||||||||
Net income |
|
103,309 |
|
|
103,309 |
|
$ |
103,309 |
| |||||||||||||||||||||||||||||
Change in cumulative translation adjustment |
|
(13,027 |
) |
|
(13,027 |
) |
|
(13,027 |
) | |||||||||||||||||||||||||||||
Adjustment in minimum pension liability,net of $889 tax expense |
|
1,390 |
|
|
1,390 |
|
|
1,390 |
| |||||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||||||||||
Comprehensive income |
$ |
91,672 |
| |||||||||||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||||||||||
Tax benefit of stock options |
|
3,190 |
|
|
3,190 |
|
||||||||||||||||||||||||||||||||
Cash dividends $0.64 per common share |
|
(28,201 |
) |
|
(28,201 |
) |
||||||||||||||||||||||||||||||||
Issuance of common shares from secondary offering |
5,500,000 |
|
|
917 |
|
|
213,563 |
|
|
214,480 |
|
|||||||||||||||||||||||||||
Share repurchases |
(117,000 |
) |
|
(19 |
) |
|
(4,011 |
) |
|
(4,030 |
) |
|||||||||||||||||||||||||||
Exercise of stock options |
321,278 |
|
|
53 |
|
|
4,401 |
|
|
4,454 |
|
|||||||||||||||||||||||||||
Issuance of restricted shares, net of cancellations |
30,616 |
|
|
5 |
|
|
2,270 |
|
|
(2,275 |
) |
|
|
|
||||||||||||||||||||||||
Amortization of restricted shares |
|
1,578 |
|
|
1,578 |
|
||||||||||||||||||||||||||||||||
Conversion into common stock |
(1,534,919 |
) |
|
(53,638 |
) |
4,078,587 |
|
|
680 |
|
|
52,958 |
|
|
|
|
||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||
Balance December 31, 1999 |
|
|
|
|
|
48,317,068 |
|
|
8,053 |
|
|
456,516 |
|
|
544,235 |
|
|
(2,434 |
) |
|
(15,599 |
) |
|
990,771 |
|
|||||||||||||
Net income |
|
55,887 |
|
|
55,887 |
|
$ |
55,887 |
| |||||||||||||||||||||||||||||
Change in cumulative translation adjustment |
|
(9,705 |
) |
|
(9,705 |
) |
|
(9,705 |
) | |||||||||||||||||||||||||||||
Adjustment in minimum pension liability,net of $926 tax benefit |
|
(1,448 |
) |
|
(1,448 |
) |
|
(1,448 |
) | |||||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||||||||||
Comprehensive income |
$ |
44,734 |
| |||||||||||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||||||||||
Tax benefit of stock options |
|
985 |
|
|
985 |
|
||||||||||||||||||||||||||||||||
Cash dividends $0.66 per common share |
|
(32,038 |
) |
|
(32,038 |
) |
||||||||||||||||||||||||||||||||
Adjustment for 1999 secondary offering |
|
774 |
|
|
774 |
|
||||||||||||||||||||||||||||||||
Share repurchases |
(13,700 |
) |
|
(2 |
) |
|
(408 |
) |
|
(410 |
) |
|||||||||||||||||||||||||||
Exercise of stock options |
151,529 |
|
|
25 |
|
|
3,075 |
|
|
3,100 |
|
|||||||||||||||||||||||||||
Issuance of restricted shares, net of cancellations |
257,058 |
|
|
43 |
|
|
7,483 |
|
|
(7,526 |
) |
|
|
|
||||||||||||||||||||||||
Amortization of restricted shares |
|
2,675 |
|
|
2,675 |
|
||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||
Balance December 31, 2000 |
|
|
|
|
|
48,711,955 |
|
|
8,119 |
|
|
468,425 |
|
|
568,084 |
|
|
(7,285 |
) |
|
(26,752 |
) |
|
1,010,591 |
|
|||||||||||||
Net income |
|
32,869 |
|
|
32,869 |
|
$ |
32,869 |
| |||||||||||||||||||||||||||||
Cumulative effect of accounting change |
|
6,739 |
|
|
6,739 |
|
|
6,739 |
| |||||||||||||||||||||||||||||
Change in cumulative translation adjustment |
|
(9,468 |
) |
|
(9,468 |
) |
|
(9,468 |
) | |||||||||||||||||||||||||||||
Adjustment in minimum pension liability,net of $399 tax benefit |
|
(625 |
) |
|
(625 |
) |
|
(625 |
) | |||||||||||||||||||||||||||||
Changes in market value of derivative financialinstruments |
|
1,188 |
|
|
1,188 |
|
|
1,188 |
| |||||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||||||||||
Comprehensive income |
$ |
30,703 |
| |||||||||||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||||||||||
Tax benefit of stock options |
|
601 |
|
|
601 |
|
||||||||||||||||||||||||||||||||
Cash dividends $0.70 per common share |
|
(34,327 |
) |
|
(34,327 |
) |
||||||||||||||||||||||||||||||||
Share repurchases |
(50,000 |
) |
|
(8 |
) |
|
(1,450 |
) |
|
(1,458 |
) |
|||||||||||||||||||||||||||
Exercise of stock options |
128,254 |
|
|
21 |
|
|
2,892 |
|
|
2,913 |
|
|||||||||||||||||||||||||||
Issuance of restricted shares, net of cancellations |
320,650 |
|
|
61 |
|
|
7,662 |
|
|
(7,723 |
) |
|
|
|
||||||||||||||||||||||||
Amortization of restricted shares |
|
5,568 |
|
|
5,568 |
|
||||||||||||||||||||||||||||||||
Stock compensation |
|
411 |
|
|
411 |
|
||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||
Balance December 31, 2001 |
|
|
$ |
|
|
49,110,859 |
|
$ |
8,193 |
|
$ |
478,541 |
|
$ |
566,626 |
|
$ |
(9,440 |
) |
$ |
(28,918 |
) |
$ |
1,015,002 |
|
|||||||||||||
|
1. |
Summary of Significant Accounting Policies |
Fiscal |
year |
Principles |
of consolidation |
Use |
of estimates |
Cash |
equivalents |
Revenue |
recognition, sales returns and warranty costs |
Inventories |
Property, |
plant, and equipment |
Years | ||
Land improvements |
5 to 20 | |
Buildings and leasehold improvements |
5 to 50 | |
Machinery and equipment |
3 to 15 |
Income |
taxes |
Foreign |
currency translation |
Earnings |
per common share |
In thousands, except per-share data |
2001 |
2000 |
1999 | ||||||||
| |||||||||||
Earnings per common share basic |
|||||||||||
Continuing operations |
$ |
57,516 |
|
$ |
81,868 |
|
$ |
98,088 | |||
Discontinued operations |
|
(24,647 |
) |
|
(24,759 |
) |
|
5,221 | |||
Cumulative effect of accounting change |
|
|
|
|
(1,222 |
) |
|
| |||
| |||||||||||
Net income |
$ |
32,869 |
|
$ |
55,887 |
|
$ |
103,309 | |||
| |||||||||||
Continuing operations |
$ |
1.17 |
|
$ |
1.68 |
|
$ |
2.24 | |||
Discontinued operations |
|
(0.50 |
) |
|
(0.51 |
) |
|
0.12 | |||
Cumulative effect of accounting change |
|
|
|
|
(0.02 |
) |
|
| |||
| |||||||||||
Basic earnings per common share |
$ |
0.67 |
|
$ |
1.15 |
|
$ |
2.36 | |||
| |||||||||||
Earnings per common share diluted |
|||||||||||
Continuing operations |
$ |
57,516 |
|
$ |
81,868 |
|
$ |
98,088 | |||
Discontinued operations |
|
(24,647 |
) |
|
(24,759 |
) |
|
5,221 | |||
Cumulative effect of accounting change |
|
|
|
|
(1,222 |
) |
|
| |||
| |||||||||||
Net income |
$ |
32,869 |
|
$ |
55,887 |
|
$ |
103,309 | |||
| |||||||||||
Continuing operations |
$ |
1.17 |
|
$ |
1.68 |
|
$ |
2.21 | |||
Discontinued operations |
|
(0.50 |
) |
|
(0.51 |
) |
|
0.12 | |||
Cumulative effect of accounting change |
|
|
|
|
(0.02 |
) |
|
| |||
| |||||||||||
Diluted earnings per common share |
$ |
0.67 |
|
$ |
1.15 |
|
$ |
2.33 | |||
| |||||||||||
Weighted average common shares outstanding basic |
|
49,047 |
|
|
48,544 |
|
|
43,803 | |||
Dilutive impact of stock options, restricted stock, and assumed conversion of preferred stock |
|
250 |
|
|
101 |
|
|
484 | |||
| |||||||||||
Weighted average common shares outstanding diluted |
|
49,297 |
|
|
48,645 |
|
|
44,287 | |||
|
2. |
Restructuring Charge |
In thousands |
Employee termination benefits |
Non-cash asset disposals |
Impaired goodwill |
Exit costs |
Total |
|||||||||||||||
| ||||||||||||||||||||
1999 restructuring charge (first quarter) |
$ |
21,288 |
|
$ |
1,100 |
|
$ |
|
|
$ |
660 |
|
$ |
23,048 |
| |||||
Utilization of 1999 restructuring charge |
|
(8,678 |
) |
|
|
|
|
|
|
|
(167 |
) |
|
(8,845 |
) | |||||
| ||||||||||||||||||||
December 31, 1999 liability |
|
12,610 |
|
|
1,100 |
|
|
|
|
|
493 |
|
|
14,203 |
| |||||
Change in estimate (first quarter) |
|
(9,110 |
) |
|
|
|
|
|
|
|
602 |
|
|
(8,508 |
) | |||||
2000 restructuring charge (first quarter) |
|
800 |
|
|
915 |
|
|
2,985 |
|
|
1,340 |
|
|
6,040 |
| |||||
Change in estimate (fourth quarter) |
|
747 |
|
|
42 |
|
|
|
|
|
(332 |
) |
|
457 |
| |||||
2000 restructuring charge (fourth quarter) |
|
7,888 |
|
|
10,518 |
|
|
|
|
|
8,394 |
|
|
26,800 |
| |||||
Utilization of 1999 and 2000 restructuring charges |
|
(5,047 |
) |
|
(12,575 |
) |
|
(2,985 |
) |
|
(2,190 |
) |
|
(22,797 |
) | |||||
| ||||||||||||||||||||
December 31, 2000 liability |
|
7,888 |
|
|
|
|
|
|
|
|
8,307 |
|
|
16,195 |
| |||||
Change in estimate (fourth quarter) |
|
991 |
|
|
|
|
|
|
|
|
(2,688 |
) |
|
(1,697 |
) | |||||
2001 restructuring charge (fourth quarter) |
|
16,696 |
|
|
11,050 |
|
|
7,362 |
|
|
7,649 |
|
|
42,757 |
| |||||
Utilization of 2000 and 2001 restructuring charges |
|
(11,343 |
) |
|
(11,050 |
) |
|
(7,362 |
) |
|
(6,388 |
) |
|
(36,143 |
) | |||||
| ||||||||||||||||||||
December 31, 2001 liability |
$ |
14,232 |
|
$ |
|
|
$ |
|
|
$ |
6,880 |
|
$ |
21,112 |
| |||||
|
In thousands |
Tools |
Enclosures |
Other |
Total | |||||||||||
| |||||||||||||||
Employee termination benefits |
$ |
5,105 |
|
$ |
16,183 |
|
$ |
|
|
$ |
21,288 | ||||
Non-cash asset disposals |
|
1,100 |
|
|
|
|
|
|
|
|
1,100 | ||||
Facility exit costs |
|
100 |
|
|
560 |
|
|
|
|
|
660 | ||||
| |||||||||||||||
1999 restructuring charge |
$ |
6,305 |
|
$ |
16,743 |
|
$ |
|
|
$ |
23,048 | ||||
| |||||||||||||||
Employee termination benefits |
$ |
(96 |
) |
$ |
(6,064 |
) |
$ |
6,485 |
|
$ |
325 | ||||
Non-cash asset disposals |
|
(55 |
) |
|
1,012 |
|
|
10,518 |
|
|
11,475 | ||||
Impaired goodwill |
|
|
|
|
2,985 |
|
|
|
|
|
2,985 | ||||
Exit costs |
|
5,547 |
|
|
442 |
|
|
4,015 |
|
|
10,004 | ||||
| |||||||||||||||
2000 restructuring charge |
$ |
5,396 |
|
$ |
(1,625 |
) |
$ |
21,018 |
|
$ |
24,789 | ||||
| |||||||||||||||
Employee termination benefits |
$ |
|
|
$ |
16,696 |
|
$ |
991 |
|
$ |
17,687 | ||||
Non-cash asset disposals |
|
|
|
|
7,675 |
|
|
3,375 |
|
|
11,050 | ||||
Impaired goodwill |
|
|
|
|
7,362 |
|
|
|
|
|
7,362 | ||||
Exit costs |
|
|
|
|
7,649 |
|
|
(2,688 |
) |
|
4,961 | ||||
| |||||||||||||||
2001 restructuring charge |
$ |
|
|
$ |
39,382 |
|
$ |
1,678 |
|
$ |
41,060 | ||||
|
3. |
Discontinued Operations/Divestitures |
In thousands |
Century/ Lincoln Automotive (1) |
Lincoln Industrial |
Equipment Segment | ||||||
| |||||||||
Cash |
$ |
|
$ |
58,047 |
$ |
58,047 | |||
Short-term notes receivable |
|
18,160 |
|
1,000 |
|
19,160 | |||
Long-term notes receivable |
|
|
|
1,000 |
|
1,000 | |||
Preferred stock |
|
|
|
18,400 |
|
18,400 | |||
| |||||||||
Total proceeds |
$ |
18,160 |
$ |
78,447 |
$ |
96,607 | |||
|
(1) |
Amount received as of the end of 2001 was $12,053. |
In thousands |
2001 |
2000 |
1999 | ||||||||
| |||||||||||
Net sales |
$ |
189,782 |
|
$ |
255,256 |
|
$ |
318,334 | |||
Pre-tax income (loss) from operations of discontinued businesses |
$ |
|
|
$ |
(37,809 |
) |
$ |
8,385 | |||
Pre-tax loss on disposal of discontinued businesses |
|
(36,298 |
) |
|
|
|
|
| |||
Provision for income taxes |
|
(11,651 |
) |
|
(13,050 |
) |
|
3,164 | |||
| |||||||||||
Income (loss) from discontinued operations, net of tax |
$ |
(24,647 |
) |
$ |
(24,759 |
) |
$ |
5,221 | |||
|
In thousands |
2001 |
2000 | ||||
| ||||||
Net current assets |
$ |
1,988 |
$ |
59,708 | ||
Property, plant and equipment, net |
|
3,337 |
|
28,339 | ||
Net other noncurrent assets and liabilities |
|
|
|
13,216 | ||
| ||||||
Net assets of discontinued operations |
$ |
5,325 |
$ |
101,263 | ||
|
4. |
Acquisitions |
Entity name and description of business acquired |
Business segment |
Date acquired |
Consideration |
Intangibles | ||||||
| ||||||||||
2001 acquisitions |
||||||||||
Metalurgica Taunus LTDA. (Taunus) |
Enclosures |
1/01 |
$ |
6,937 |
$ |
5,854 | ||||
Manufacturer of electrical and electronic enclosures |
||||||||||
1999 acquisitions |
||||||||||
DeVilbiss Air Power Company |
Tools |
9/99 |
|
466,579 |
|
360,445 | ||||
Manufacturer of air compressors, generators, and pressure washers |
||||||||||
Essef Corporation (Structural Fibers and Pac-Fab) |
Water |
8/99 |
|
424,633 |
|
349,608 | ||||
Manufacturer of pressure vessels and pool and spa equipment |
||||||||||
WEB Tool & Manufacturing, Inc. |
Enclosures |
4/99 |
|
61,912 |
|
45,342 | ||||
Designer, manufacturer and marketer of custom server subracks for the datacom and telecom markets |
5. |
Supplemental Balance Sheet Information |
In thousands |
2001 |
2000 | ||||
| ||||||
Inventories |
||||||
Raw materials and supplies |
$ |
94,404 |
$ |
110,935 | ||
Work-in-process |
|
38,760 |
|
48,392 | ||
Finished goods |
|
167,759 |
|
233,168 | ||
| ||||||
Total inventories |
$ |
300,923 |
$ |
392,495 | ||
| ||||||
Property, plant and equipment |
||||||
Land and land improvements |
$ |
16,688 |
$ |
17,238 | ||
Buildings and leasehold improvements |
|
152,873 |
|
149,620 | ||
Machinery and equipment |
|
518,141 |
|
496,175 | ||
Construction in progress |
|
21,304 |
|
25,682 | ||
| ||||||
Total property, plant and equipment |
|
709,006 |
|
688,715 | ||
Less accumulated depreciation and amortization |
|
379,506 |
|
335,731 | ||
| ||||||
Property, plant and equipment, net |
$ |
329,500 |
$ |
352,984 | ||
| ||||||
Other assets |
||||||
Equity method investments |
$ |
25,247 |
$ |
| ||
Cost method investments |
|
23,400 |
|
| ||
Fair market value of currency swaps |
|
11,380 |
|
| ||
Other |
|
58,862 |
|
58,137 | ||
| ||||||
Total other assets |
$ |
118,889 |
$ |
58,137 | ||
|
6. |
Supplemental Cash Flow Information |
In thousands |
2001 |
2000 |
1999 | ||||||
| |||||||||
Interest payments |
$ |
69,411 |
$ |
81,401 |
$ |
46,359 | |||
Income tax payments |
|
3,224 |
|
42,449 |
|
68,108 |
7. |
Accumulated Other Comprehensive Loss |
In thousands |
2001 |
2000 |
1999 |
|||||||||
| ||||||||||||
Minimum pension liability adjustments, net of tax |
$ |
(3,058 |
) |
$ |
(2,433 |
) |
$ |
(985 |
) | |||
Foreign currency translation adjustments |
|
(33,787 |
) |
|
(24,319 |
) |
|
(14,614 |
) | |||
Market value of derivative financial instruments |
|
7,927 |
|
|
|
|
|
|
| |||
| ||||||||||||
Accumulated other comprehensive loss |
$ |
(28,918 |
) |
$ |
(26,752 |
) |
$ |
(15,599 |
) | |||
|
8. |
Debt |
In thousands |
Average interest rate December 31, 2001 |
Maturity (Year) |
2001 |
2000 |
|||||||||
| |||||||||||||
Commercial paper, maturing within 60 days |
$ |
|
|
$ |
315,172 |
| |||||||
Revolving credit facilities |
3.21 |
% |
2004 |
|
329,000 |
|
|
74,828 |
| ||||
Private placement |
6.78 |
% |
2002 - 2007 |
|
131,787 |
|
|
149,814 |
| ||||
Senior notes |
7.85 |
% |
2009 |
|
250,000 |
|
|
250,000 |
| ||||
Other |
Various |
|
2002 - 2007 |
|
12,919 |
|
|
16,019 |
| ||||
| |||||||||||||
Long-term debt, including current portion |
|
723,706 |
|
|
805,833 |
| |||||||
Less current maturities of long-term debt |
|
(8,729 |
) |
|
(23,999 |
) | |||||||
| |||||||||||||
Long-term debt |
$ |
714,977 |
|
$ |
781,834 |
| |||||||
|
In thousands |
2002 |
2003 |
2004 |
2005 |
2006 |
Thereafter |
Total | ||||||||||||||
| |||||||||||||||||||||
Maturities |
$ |
8,729 |
$ |
53,943 |
$ |
372,763 |
$ |
1,749 |
$ |
35 |
$ |
286,487 |
$ |
723,706 | |||||||
|
9. |
Derivative and Financial Instruments |
2001 |
2000 |
||||||||||||||
In thousands |
Recorded amount |
Fair value |
Recorded amount |
Fair value |
|||||||||||
| |||||||||||||||
Long-term debt, including current portion |
|||||||||||||||
Variable rate |
$ |
<