What changed in this filing

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Item 1. Financial Statements

2021-07-29 compared with 2021-04-29 · 59 added, 22 removed, 288 unchanged (22% of the section changed)

3 unchanged sentences

(In thousands, except per share data)

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

2021 2020 2021 2020

Net sales $ 1,787,833 $ 1,280,846 $ 2,848,579 $ 1,958,134

6 unchanged sentences

Income before income taxes and equity earnings 336,623 203,214 463,072 234,013

Income tax provision (benefit) 27,869 ( 25 )

Provision for income taxes 76,985 45,733 104,854 45,708

Equity earnings in unconsolidated investments, net 57 74 132 162

11 unchanged sentences

(In thousands)

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

2021 2020 2021 2020

Net income $ 259,695 $ 157,555 $ 358,350 $ 188,467

Other comprehensive income (loss):

Foreign currency translation losses ( 1,268 ) ( 5,430 )

Foreign currency translation gains (losses) 1,302 2,134 34 ( 3,296 )

Change in unrealized gains (losses) on interest rate swaps, net of change in taxes of $ 719 , $ 855 , $( 2,327 ), and $ 3,692

6 unchanged sentences

(In thousands, except share data)

March 31, March 31, December 31,

June 30, June 30, December 31,

2021 2020 2020 (1)

30 unchanged sentences

40,131,570 , 40,041,683 and 40,232,210 shares issued and

outstanding at March 31, 2021, March 31, 2020 and

outstanding at June 30, 2021, June 30, 2020 and

December 31, 2020, respectively

Additional paid-in capital 535,046 503,271 519,579

Retained earnings (deficit) 137,710 ( 122,594 ) 133,870

Retained earnings 346,667 8,212 133,870

Accumulated other comprehensive loss ( 7,005 ) ( 24,732 ) ( 14,019 )

6 unchanged sentences

(In thousands)

Three Months Ended

Six Months Ended

Operating activities

59 unchanged sentences

Balance at March 31, 2021 40,086 $ 40 $ 526,328 $ 137,710 $ ( 6,150 ) $ 657,928

— — — 259,695 — 259,695

Foreign currency translation

— — — — 1,302 1,302

Interest rate swaps, net of the change in taxes of $ 719

— — — — ( 2,157 ) ( 2,157 )

Repurchases of common stock, net of retirements

( 45 ) — — ( 18,619 ) — ( 18,619 )

Share-based compensation

— — 3,712 — — 3,712

Issuance of stock under share-based compensation plans

90 — 5,006 — — 5,006

Declaration of cash dividends

— — — ( 32,119 ) — ( 32,119 )

Balance at June 30, 2021 40,131 $ 40 $ 535,046 $ 346,667 $ ( 7,005 ) $ 874,748

Common Stock Additional

Paid-In Retained Accumulated

Paid-In Retained Earnings Accumulated

Comprehensive

15 unchanged sentences

Balance at March 31, 2020 39,931 $ 40 $ 495,251 $ ( 122,594 ) $ ( 24,299 ) $ 348,398

— — — 157,555 — 157,555

Foreign currency translation

— — — — 2,134 2,134

Interest rate swaps, net of the change in taxes of $ 855

— — — — ( 2,567 ) ( 2,567 )

Repurchases of common stock, net of retirements

( 19 ) — — ( 3,584 ) — ( 3,584 )

Share-based compensation

— — 3,567 — — 3,567

Issuance of stock under share-based compensation plans

130 — 4,453 — — 4,453

Declaration of cash dividends

— — — ( 23,165 ) — ( 23,165 )

Balance at June 30, 2020 40,042 $ 40 $ 503,271 $ 8,212 $ ( 24,732 ) $ 486,791

The accompanying Notes are an integral part of the Consolidated Financial Statements.

9 unchanged sentences

You should read the interim Consolidated Financial Statements in conjunction with the Consolidated Financial Statements and accompanying notes in our 2020 Annual Report on Form 10-K.

The results for our three month period ended March 31, 2021 are not necessarily indicative of the expected results for our fiscal year ending December 31, 2021.

The results for our three and six month periods ended June 30, 2021 are not necessarily indicative of the expected results for our fiscal year ending December 31, 2021.

Newly Adopted Accounting Pronouncements

6 unchanged sentences

We record all excess tax benefits as a component of income tax benefit or expense on the Consolidated Statements of Income in the period in which stock options are exercised or restrictions on awards lapse.

We recorded excess tax benefits of $ 4.0 million in the first quarter of 2021 compared to $ 8.0 million in the first quarter of 2020.

We recorded excess tax benefits of $ 7.7 million in the second quarter of 2021 compared to $ 6.2 million in the second quarter of 2020 and $ 11.7 million in the six months ended June 30, 2021 compared to $ 14.2 million in the six months ended June 30, 2020.

Retained Earnings

We account for the retirement of treasury shares as a reduction of Retained earnings (deficit).

As of March 31, 2021, the Retained earnings on our Consolidated Balance Sheets reflects cumulative net income, the cumulative impact of adjustments for changes in accounting pronouncements, treasury share retirements since the inception of our share repurchase programs of $ 1.6 billion and cumulative dividends of $ 694.1 million.

We account for the retirement of treasury shares as a reduction of Retained earnings.

As of June 30, 2021, the Retained earnings on our Consolidated Balance Sheets reflects cumulative net income, the cumulative impact of adjustments for changes in accounting pronouncements, treasury share retirements since the inception of our share repurchase programs of $ 1.6 billion and cumulative dividends of $ 726.2 million.

Accumulated Other Comprehensive Loss

The table below presents the components of our Accumulated other comprehensive loss balance (in thousands):

March 31, December 31,

June 30, December 31,

2021 2020 2020

Foreign currency translation adjustments $ ( 4,882 ) $ ( 13,423 ) $ ( 4,917 )

Unrealized gains (losses) on interest rate swaps, net of tax

Unrealized losses on interest rate swaps, net of tax

( 2,123 ) ( 11,309 ) ( 9,102 )

3 unchanged sentences

Standard Description Effective Date Effect on Financial Statements and Other Significant Matters

ASU 2020-04, Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting and ASU 2021-01, Reference Rate Reform (Topic 848):

ASU 2020-04, Reference Rate Reform (Topic 848):

Facilitation of the Effects of Reference Rate Reform on Financial Reporting and ASU 2021-01, Reference Rate Reform (Topic 848):

Provides temporary optional guidance to ease the potential burden in accounting for reference rate reform.

13 unchanged sentences

The table below presents the computation of EPS, including the reconciliation of basic and diluted weighted average shares outstanding (in thousands, except EPS):

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

2021 2020 2021 2020

Net income $ 259,695 $ 157,555 $ 358,350 $ 188,467

9 unchanged sentences

Note 3 – Acquisitions

In June 2021, we acquired the distribution assets of Vak Pak Builders Supply, Inc., a wholesale distributor of swimming pool equipment, chemicals and supplies, adding one location in Florida.

In April 2021, we acquired Pool Source, LLC, a wholesale distributor of swimming pool equipment, chemicals and supplies, adding one location in Tennessee.

In December 2020, we acquired the distribution assets of TWC Distributors, Inc., a wholesale distributor of irrigation and landscape maintenance products, adding nine locations in Florida and one in Georgia.

16 unchanged sentences

The table below presents the estimated fair values of our interest rate swap contracts, our forward-starting interest rate swap contracts and our contingent consideration liabilities (in thousands):

Fair Value at March 31,

Fair Value at June 30,

Unrealized gains on interest rate swaps $ 4,641 $ —

7 unchanged sentences

We recognize any differences between the variable interest rate in effect and the fixed interest rates per our swap contracts as an adjustment to interest expense over the life of the swaps.

To the extent our derivatives are effective in offsetting the variability of the hedged cash flows, we record the changes in the estimated fair value of our interest rate swap contracts to Accumulated other comprehensive income (loss) on the Consolidated Balance Sheets.

We currently have three interest rate swap contracts in place, two of which became effective on November 20, 2020, and terminate on September 29, 2022, and a third that became effective on February 26, 2021, and terminates on February 28, 2025.

8 unchanged sentences

Interest rate swap 3 February 5, 2020 February 26, 2021 February 28, 2025 $ 150.0 1.3800 %

For the interest rate swap contracts in effect at March 31, 2021, a portion of the change in the estimated fair value between periods relates to future interest expense.

For the interest rate swap contracts in effect at June 30, 2021, a portion of the change in the estimated fair value between periods relates to future interest expense.

Recognition of the change in fair value between periods attributable to accrued interest is reclassified from Accumulated other comprehensive loss on the Consolidated Balance Sheets to Interest and other non-operating expenses, net on the Consolidated Statements of Income.

This amount was not material in the three month period ended March 31, 2021.

This amount was not material in the six-month period ended June 30, 2021.

We have entered into forward-starting interest rate swap contracts to extend the hedged period for future interest payments on our variable rate borrowings.

14 unchanged sentences

Generally, our assets, including long-lived assets, goodwill and intangible assets, are recorded at fair value on a nonrecurring basis as a result of impairment charges.

During the first quarter of 2021, we did not record any significant nonrecurring fair value measurements for assets or liabilities in periods subsequent to their initial recognition.

In the six months ended June 30, 2021, we did not record any significant nonrecurring fair value measurements for assets or liabilities in periods subsequent to their initial recognition.

The carrying values of cash, receivables, accounts payable and accrued liabilities approximate fair value due to the short maturity of those instruments.

22 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements