Amphenol Corp (APH) 10-Q Quarterly Report Fri Oct 29 2021

“We are pleased to have closed the third quarter with sales and Adjusted Diluted EPS² exceeding the high end of our guidance,” said Amphenol President and Chief Executive Officer, R. Adam Norwitt. “Sales increased by a strong 21% in the quarter, with broad-based growth across most of our end markets, including contributions from the Company’s acquisition program.”

“During the third quarter, Amphenol continued to deploy its financial strength in a variety of ways to increase shareholder value. To that end, the Company purchased 2.3 million shares of its common stock for $171 million. The Company also paid dividends of $87 million, resulting in total capital returned to shareholders during the third quarter of $258 million.”

Increase in Quarterly Dividend

On October 26, 2021, the Company’s Board of Directors approved a 38% increase in the Company’s quarterly dividend, from $0.145 per share to $0.20 per share. The new dividend amount will be paid on January 12, 2022 to shareholders of record as of December 21, 2021.

Fourth Quarter and Full Year 2021 Outlook

The current market environment remains highly uncertain, with significant supply chain and inflationary challenges as well as the ongoing pandemic. Given this, and assuming constant exchange rates, for the fourth quarter 2021, Amphenol expects sales to be in the range of $2.690 billion to $2.750 billion, representing 11% to 13% growth over the fourth quarter of 2020, and Adjusted Diluted EPS² in the range of $0.61 to $0.63, representing 7% to 11% growth over the fourth quarter of 2020. For the full year 2021, we expect sales to be in the range of $10.540 billion to $10.600 billion, representing 23% growth over 2020, and Adjusted Diluted EPS² in the range of $2.39 to $2.41, representing 28% to 29% growth over 2020.

“Despite the ongoing challenges and uncertainties we continue to face around the world, we are pleased with the platform of strength that has been created by the Company’s performance,” Mr. Norwitt continued. “The revolution in electronics is accelerating, thereby creating exciting and dynamic long-term growth opportunities for Amphenol across each of our diversified end markets. We believe these opportunities will enable a further, long-term increase in the demand for our ever expanding range of high-technology interconnect, sensor and antenna products. Our ongoing drive to leverage our competitive advantages and create sustained financial strength, as well as our initiatives to expand our product offerings, both organically and through our acquisition program, have created an excellent base for the Company’s future performance. I am confident in the ability of our outstanding entrepreneurial management team to continue to dynamically adjust to changing market conditions, to capitalize on the wide array of growth opportunities that arise in all market cycles and to continue to generate sustainable long-term value for our shareholders and other stakeholders. Most importantly, I remain truly grateful to our team for their extraordinary efforts to protect the safety and health of our employees around the world throughout the ongoing pandemic, all while continuing to strongly support our customers and drive outstanding operating performance.”

The following information was filed by Amphenol Corp (APH) on Wednesday, October 27, 2021 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

P5YP10Y0000820313--12-31Q3false30000030000030000030000020000820313aph:StockRepurchaseProgram2021Memberus-gaap:SubsequentEventMember2021-10-012021-10-260000820313aph:StockRepurchaseProgram2021Memberus-gaap:SubsequentEventMember2021-10-260000820313aph:StockRepurchaseProgram2021Member2021-04-272021-04-270000820313aph:StockRepurchaseProgram2018Member2018-04-242018-04-240000820313aph:StockRepurchaseProgram2021Member2021-04-270000820313aph:StockRepurchaseProgram2018Member2018-04-240000820313aph:StockRepurchaseProgram2018Member2020-07-012020-09-300000820313aph:StockRepurchaseProgram2021Member2021-07-012021-09-300000820313aph:StockRepurchaseProgram2021Member2021-01-012021-09-300000820313aph:StockRepurchaseProgram2018Member2021-01-012021-09-300000820313aph:StockRepurchaseProgram2018Member2020-01-012020-09-300000820313us-gaap:CommonStockMember2021-07-012021-09-300000820313us-gaap:CommonStockMember2021-01-012021-09-300000820313us-gaap:CommonStockMember2020-07-012020-09-300000820313us-gaap:CommonStockMember2020-01-012020-09-3000008203132021-03-042021-03-040000820313aph:StockSplitMemberus-gaap:CommonStockMember2021-09-300000820313aph:StockSplitMemberus-gaap:AdditionalPaidInCapitalMember2021-09-300000820313us-gaap:TreasuryStockCommonMember2021-09-300000820313us-gaap:RetainedEarningsMember2021-09-300000820313us-gaap:NoncontrollingInterestMember2021-09-300000820313us-gaap:AdditionalPaidInCapitalMember2021-09-300000820313us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-300000820313us-gaap:TreasuryStockCommonMember2021-06-300000820313us-gaap:RetainedEarningsMember2021-06-300000820313us-gaap:NoncontrollingInterestMember2021-06-300000820313us-gaap:AdditionalPaidInCapitalMember2021-06-300000820313us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-3000008203132021-06-300000820313aph:StockSplitMemberus-gaap:CommonStockMember2020-12-310000820313aph:StockSplitMemberus-gaap:AdditionalPaidInCapitalMember2020-12-310000820313us-gaap:TreasuryStockCommonMember2020-12-310000820313us-gaap:RetainedEarningsMember2020-12-310000820313us-gaap:NoncontrollingInterestMember2020-12-310000820313us-gaap:AdditionalPaidInCapitalMember2020-12-310000820313us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310000820313aph:StockSplitMemberus-gaap:CommonStockMember2020-09-300000820313aph:StockSplitMemberus-gaap:AdditionalPaidInCapitalMember2020-09-300000820313us-gaap:TreasuryStockCommonMember2020-09-300000820313us-gaap:RetainedEarningsMember2020-09-300000820313us-gaap:NoncontrollingInterestMember2020-09-300000820313us-gaap:AdditionalPaidInCapitalMember2020-09-300000820313us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-300000820313us-gaap:TreasuryStockCommonMember2020-06-300000820313us-gaap:RetainedEarningsMember2020-06-300000820313us-gaap:NoncontrollingInterestMember2020-06-300000820313us-gaap:AdditionalPaidInCapitalMember2020-06-300000820313us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-3000008203132020-06-300000820313srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:AccountingStandardsUpdate201613Memberus-gaap:RetainedEarningsMember2019-12-310000820313srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:AccountingStandardsUpdate201613Member2019-12-310000820313aph:StockSplitMemberus-gaap:CommonStockMember2019-12-310000820313aph:StockSplitMemberus-gaap:AdditionalPaidInCapitalMember2019-12-310000820313us-gaap:TreasuryStockCommonMember2019-12-310000820313us-gaap:RetainedEarningsMember2019-12-310000820313us-gaap:NoncontrollingInterestMember2019-12-310000820313us-gaap:AdditionalPaidInCapitalMember2019-12-310000820313us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310000820313us-gaap:EmployeeStockOptionMember2020-01-012020-12-310000820313us-gaap:EmployeeStockOptionMember2021-06-300000820313us-gaap:EmployeeStockOptionMember2021-03-310000820313us-gaap:EmployeeStockOptionMember2020-12-310000820313us-gaap:EmployeeStockOptionMember2021-04-012021-06-300000820313us-gaap:EmployeeStockOptionMember2021-01-012021-03-310000820313us-gaap:EmployeeStockOptionMember2021-07-012021-09-300000820313us-gaap:EmployeeStockOptionMember2020-07-012020-09-300000820313us-gaap:EmployeeStockOptionMember2020-01-012020-09-300000820313aph:StockOptionPlanTwoThousandSeventeenMember2021-09-300000820313aph:StockOptionPlanTwoThousandSeventeenMember2021-05-180000820313aph:StockOptionPlanTwoThousandSeventeenMember2021-05-192021-05-190000820313us-gaap:RestrictedStockMemberaph:DirectorsRestrictedStockPlanMember2020-01-012020-12-310000820313us-gaap:RestrictedStockMemberaph:DirectorsRestrictedStockPlanMember2021-06-300000820313us-gaap:RestrictedStockMemberaph:DirectorsRestrictedStockPlanMember2021-03-310000820313us-gaap:RestrictedStockMemberaph:DirectorsRestrictedStockPlanMember2020-12-310000820313us-gaap:RestrictedStockMemberaph:DirectorsRestrictedStockPlanMember2021-07-012021-09-300000820313us-gaap:RestrictedStockMemberaph:DirectorsRestrictedStockPlanMember2021-04-012021-06-300000820313us-gaap:RestrictedStockMemberaph:DirectorsRestrictedStockPlanMember2021-01-012021-03-310000820313aph:StockPurchaseAndOptionPlan2009Member2021-01-012021-09-300000820313aph:StockOptionPlanTwoThousandSeventeenMember2021-01-012021-09-300000820313us-gaap:SalesChannelThroughIntermediaryMemberaph:InterconnectProductsAndAssembliesMember2021-07-012021-09-300000820313us-gaap:SalesChannelThroughIntermediaryMemberaph:CableProductsAndSolutionsMember2021-07-012021-09-300000820313us-gaap:SalesChannelDirectlyToConsumerMemberaph:InterconnectProductsAndAssembliesMember2021-07-012021-09-300000820313us-gaap:SalesChannelDirectlyToConsumerMemberaph:CableProductsAndSolutionsMember2021-07-012021-09-300000820313us-gaap:OperatingSegmentsMemberus-gaap:CorporateAndOtherMember2021-07-012021-09-300000820313us-gaap:IntersegmentEliminationMemberus-gaap:CorporateAndOtherMember2021-07-012021-09-300000820313us-gaap:IntersegmentEliminationMemberaph:InterconnectProductsAndAssembliesMember2021-07-012021-09-300000820313us-gaap:IntersegmentEliminationMemberaph:CableProductsAndSolutionsMember2021-07-012021-09-300000820313country:USaph:InterconnectProductsAndAssembliesMember2021-07-012021-09-300000820313country:USaph:CableProductsAndSolutionsMember2021-07-012021-09-300000820313country:CNaph:InterconnectProductsAndAssembliesMember2021-07-012021-09-300000820313country:CNaph:CableProductsAndSolutionsMember2021-07-012021-09-300000820313aph:OtherForeignLocationsMemberaph:InterconnectProductsAndAssembliesMember2021-07-012021-09-300000820313aph:OtherForeignLocationsMemberaph:CableProductsAndSolutionsMember2021-07-012021-09-300000820313us-gaap:SalesChannelThroughIntermediaryMember2021-07-012021-09-300000820313us-gaap:SalesChannelDirectlyToConsumerMember2021-07-012021-09-300000820313us-gaap:IntersegmentEliminationMember2021-07-012021-09-300000820313country:US2021-07-012021-09-300000820313country:CN2021-07-012021-09-300000820313aph:OtherForeignLocationsMember2021-07-012021-09-300000820313aph:InterconnectProductsAndAssembliesMember2021-07-012021-09-300000820313aph:CableProductsAndSolutionsMember2021-07-012021-09-300000820313us-gaap:SalesChannelThroughIntermediaryMemberaph:InterconnectProductsAndAssembliesMember2021-01-012021-09-300000820313us-gaap:SalesChannelThroughIntermediaryMemberaph:CableProductsAndSolutionsMember2021-01-012021-09-300000820313us-gaap:SalesChannelDirectlyToConsumerMemberaph:InterconnectProductsAndAssembliesMember2021-01-012021-09-300000820313us-gaap:SalesChannelDirectlyToConsumerMemberaph:CableProductsAndSolutionsMember2021-01-012021-09-300000820313us-gaap:OperatingSegmentsMemberus-gaap:CorporateAndOtherMember2021-01-012021-09-300000820313us-gaap:IntersegmentEliminationMemberus-gaap:CorporateAndOtherMember2021-01-012021-09-300000820313us-gaap:IntersegmentEliminationMemberaph:InterconnectProductsAndAssembliesMember2021-01-012021-09-300000820313us-gaap:IntersegmentEliminationMemberaph:CableProductsAndSolutionsMember2021-01-012021-09-300000820313country:USaph:InterconnectProductsAndAssembliesMember2021-01-012021-09-300000820313country:USaph:CableProductsAndSolutionsMember2021-01-012021-09-300000820313country:CNaph:InterconnectProductsAndAssembliesMember2021-01-012021-09-300000820313country:CNaph:CableProductsAndSolutionsMember2021-01-012021-09-300000820313aph:OtherForeignLocationsMemberaph:InterconnectProductsAndAssembliesMember2021-01-012021-09-300000820313aph:OtherForeignLocationsMemberaph:CableProductsAndSolutionsMember2021-01-012021-09-300000820313us-gaap:SalesChannelThroughIntermediaryMember2021-01-012021-09-300000820313us-gaap:SalesChannelDirectlyToConsumerMember2021-01-012021-09-300000820313us-gaap:IntersegmentEliminationMember2021-01-012021-09-300000820313country:US2021-01-012021-09-300000820313country:CN2021-01-012021-09-300000820313aph:OtherForeignLocationsMember2021-01-012021-09-300000820313us-gaap:SalesChannelThroughIntermediaryMemberaph:InterconnectProductsAndAssembliesMember2020-07-012020-09-300000820313us-gaap:SalesChannelThroughIntermediaryMemberaph:CableProductsAndSolutionsMember2020-07-012020-09-300000820313us-gaap:SalesChannelDirectlyToConsumerMemberaph:InterconnectProductsAndAssembliesMember2020-07-012020-09-300000820313us-gaap:SalesChannelDirectlyToConsumerMemberaph:CableProductsAndSolutionsMember2020-07-012020-09-300000820313us-gaap:OperatingSegmentsMemberus-gaap:CorporateAndOtherMember2020-07-012020-09-300000820313us-gaap:IntersegmentEliminationMemberus-gaap:CorporateAndOtherMember2020-07-012020-09-300000820313us-gaap:IntersegmentEliminationMemberaph:InterconnectProductsAndAssembliesMember2020-07-012020-09-300000820313us-gaap:IntersegmentEliminationMemberaph:CableProductsAndSolutionsMember2020-07-012020-09-300000820313country:USaph:InterconnectProductsAndAssembliesMember2020-07-012020-09-300000820313country:USaph:CableProductsAndSolutionsMember2020-07-012020-09-300000820313country:CNaph:InterconnectProductsAndAssembliesMember2020-07-012020-09-300000820313country:CNaph:CableProductsAndSolutionsMember2020-07-012020-09-300000820313aph:OtherForeignLocationsMemberaph:InterconnectProductsAndAssembliesMember2020-07-012020-09-300000820313aph:OtherForeignLocationsMemberaph:CableProductsAndSolutionsMember2020-07-012020-09-300000820313us-gaap:SalesChannelThroughIntermediaryMember2020-07-012020-09-300000820313us-gaap:SalesChannelDirectlyToConsumerMember2020-07-012020-09-300000820313us-gaap:IntersegmentEliminationMember2020-07-012020-09-300000820313country:US2020-07-012020-09-300000820313country:CN2020-07-012020-09-300000820313aph:OtherForeignLocationsMember2020-07-012020-09-300000820313aph:InterconnectProductsAndAssembliesMember2020-07-012020-09-300000820313aph:CableProductsAndSolutionsMember2020-07-012020-09-300000820313us-gaap:SalesChannelThroughIntermediaryMemberaph:InterconnectProductsAndAssembliesMember2020-01-012020-09-300000820313us-gaap:SalesChannelThroughIntermediaryMemberaph:CableProductsAndSolutionsMember2020-01-012020-09-300000820313us-gaap:SalesChannelDirectlyToConsumerMemberaph:InterconnectProductsAndAssembliesMember2020-01-012020-09-300000820313us-gaap:SalesChannelDirectlyToConsumerMemberaph:CableProductsAndSolutionsMember2020-01-012020-09-300000820313us-gaap:OperatingSegmentsMemberus-gaap:CorporateAndOtherMember2020-01-012020-09-300000820313us-gaap:IntersegmentEliminationMemberus-gaap:CorporateAndOtherMember2020-01-012020-09-300000820313us-gaap:IntersegmentEliminationMemberaph:InterconnectProductsAndAssembliesMember2020-01-012020-09-300000820313us-gaap:IntersegmentEliminationMemberaph:CableProductsAndSolutionsMember2020-01-012020-09-300000820313country:USaph:InterconnectProductsAndAssembliesMember2020-01-012020-09-300000820313country:USaph:CableProductsAndSolutionsMember2020-01-012020-09-300000820313country:CNaph:InterconnectProductsAndAssembliesMember2020-01-012020-09-300000820313country:CNaph:CableProductsAndSolutionsMember2020-01-012020-09-300000820313aph:OtherForeignLocationsMemberaph:InterconnectProductsAndAssembliesMember2020-01-012020-09-300000820313aph:OtherForeignLocationsMemberaph:CableProductsAndSolutionsMember2020-01-012020-09-300000820313us-gaap:SalesChannelThroughIntermediaryMember2020-01-012020-09-300000820313us-gaap:SalesChannelDirectlyToConsumerMember2020-01-012020-09-300000820313us-gaap:IntersegmentEliminationMember2020-01-012020-09-300000820313country:US2020-01-012020-09-300000820313country:CN2020-01-012020-09-300000820313aph:OtherForeignLocationsMember2020-01-012020-09-300000820313aph:InterconnectProductsAndAssembliesMember2020-01-012020-09-300000820313aph:CableProductsAndSolutionsMember2020-01-012020-09-300000820313aph:UnsecuredSeniorNotes3.125PercentDueInSeptember2021Member2021-07-012021-09-300000820313aph:UnsecuredSeniorNotes2.20PercentDueApril2020Member2020-04-012020-04-010000820313us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300000820313us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-09-300000820313us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-07-012020-09-300000820313us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-09-300000820313us-gaap:OperatingSegmentsMemberaph:InterconnectProductsAndAssembliesMember2021-07-012021-09-300000820313us-gaap:OperatingSegmentsMemberaph:CableProductsAndSolutionsMember2021-07-012021-09-300000820313us-gaap:OperatingSegmentsMember2021-07-012021-09-300000820313us-gaap:OperatingSegmentsMemberaph:InterconnectProductsAndAssembliesMember2021-01-012021-09-300000820313us-gaap:OperatingSegmentsMemberaph:CableProductsAndSolutionsMember2021-01-012021-09-300000820313us-gaap:OperatingSegmentsMember2021-01-012021-09-300000820313us-gaap:OperatingSegmentsMemberaph:InterconnectProductsAndAssembliesMember2020-07-012020-09-300000820313us-gaap:OperatingSegmentsMemberaph:CableProductsAndSolutionsMember2020-07-012020-09-300000820313us-gaap:OperatingSegmentsMember2020-07-012020-09-300000820313us-gaap:OperatingSegmentsMemberaph:InterconnectProductsAndAssembliesMember2020-01-012020-09-300000820313us-gaap:OperatingSegmentsMemberaph:CableProductsAndSolutionsMember2020-01-012020-09-300000820313us-gaap:OperatingSegmentsMember2020-01-012020-09-300000820313aph:MtsSystemsCorporationMember2020-01-012020-12-310000820313aph:InterconnectProductsAndAssembliesMember2020-01-012020-12-310000820313us-gaap:NoncontrollingInterestMember2021-07-012021-09-300000820313us-gaap:NoncontrollingInterestMember2021-01-012021-09-300000820313us-gaap:NoncontrollingInterestMember2020-07-012020-09-300000820313us-gaap:NoncontrollingInterestMember2020-01-012020-09-3000008203132020-10-3100008203132019-12-012020-10-310000820313aph:CommercialPaperProgramsAndRevolvingCreditFacilityMember2021-09-300000820313aph:UnsecuredCreditFacilityMember2021-09-300000820313aph:UnsecuredCreditFacilityMember2020-12-3100008203132021-07-012021-07-0100008203132020-01-012020-12-3100008203132019-01-012019-12-310000820313aph:InterconnectProductsAndAssembliesMember2021-01-012021-09-300000820313aph:CableProductsAndSolutionsMember2021-01-012021-09-300000820313aph:MtsSensorsMember2021-09-300000820313aph:CableProductsAndSolutionsMember2021-09-300000820313aph:InterconnectProductsAndAssembliesMember2020-12-310000820313aph:CableProductsAndSolutionsMember2020-12-310000820313aph:MtsSensorsMemberus-gaap:TechnologyBasedIntangibleAssetsMember2021-01-012021-09-300000820313aph:MtsSensorsMemberus-gaap:CustomerRelationshipsMember2021-01-012021-09-300000820313aph:MtsSensorsMember2021-01-012021-09-300000820313us-gaap:TechnologyBasedIntangibleAssetsMember2021-09-300000820313us-gaap:CustomerRelationshipsMember2021-09-300000820313aph:BacklogAndOtherMember2021-09-300000820313us-gaap:TechnologyBasedIntangibleAssetsMember2020-12-310000820313us-gaap:CustomerRelationshipsMember2020-12-310000820313aph:BacklogAndOtherMember2020-12-310000820313us-gaap:EmployeeStockOptionMember2021-09-300000820313us-gaap:RestrictedStockMemberaph:DirectorsRestrictedStockPlanMember2021-09-300000820313us-gaap:RestrictedStockMemberaph:DirectorsRestrictedStockPlanMember2021-01-012021-09-300000820313us-gaap:EmployeeStockOptionMember2021-01-012021-09-300000820313us-gaap:RetainedEarningsMember2021-07-012021-09-300000820313us-gaap:RetainedEarningsMember2021-01-012021-09-300000820313us-gaap:RetainedEarningsMember2020-07-012020-09-300000820313us-gaap:RetainedEarningsMember2020-01-012020-09-300000820313aph:MtsTestSimulationMember2021-01-190000820313srt:MaximumMemberus-gaap:CashFlowHedgingMember2021-01-012021-09-300000820313us-gaap:CashFlowHedgingMember2021-09-300000820313country:US2021-01-012021-09-300000820313country:US2020-01-012020-09-300000820313country:USus-gaap:PensionPlansDefinedBenefitMember2021-09-300000820313country:USus-gaap:PensionPlansDefinedBenefitMember2021-01-012021-09-300000820313us-gaap:PensionPlansDefinedBenefitMember2021-07-012021-09-300000820313us-gaap:PensionPlansDefinedBenefitMember2021-01-012021-09-300000820313us-gaap:PensionPlansDefinedBenefitMember2020-07-012020-09-300000820313us-gaap:PensionPlansDefinedBenefitMember2020-01-012020-09-300000820313srt:MaximumMemberaph:USCommercialPaperProgramMember2021-01-012021-09-300000820313srt:MaximumMemberaph:EuroCommercialPaperProgramMember2021-01-012021-09-300000820313aph:UnsecuredSeniorNotes2.200PercentDueSeptember2031Member2021-09-142021-09-140000820313aph:EuroSeniorNotes0.750PercentDueMay2026Member2020-05-042020-05-040000820313aph:UnsecuredSeniorNotes2.05PercentDueMarch2025Member2020-02-202020-02-200000820313aph:UnsecuredSeniorNotes2.200PercentDueSeptember2031Member2021-01-012021-09-300000820313aph:UnsecuredSeniorNotes2.05PercentDueMarch2025Member2021-01-012021-09-300000820313aph:EuroSeniorNotes0.750PercentDueMay2026Member2021-01-012021-09-300000820313aph:EuroSeniorNotes2.00PercentDueOctober2028Member2021-09-300000820313aph:UnsecuredSeniorNotes2.20PercentDueApril2020Member2020-04-010000820313aph:UnsecuredCreditFacilityMember2021-01-012021-09-300000820313aph:SeniorNotes1Member2021-01-012021-09-300000820313aph:EuroNotesMember2021-01-012021-09-300000820313us-gaap:CommonStockMember2021-09-300000820313us-gaap:CommonStockMember2021-06-300000820313us-gaap:CommonStockMember2020-12-310000820313us-gaap:CommonStockMember2020-09-300000820313us-gaap:CommonStockMember2020-06-300000820313us-gaap:CommonStockMember2019-12-310000820313us-gaap:SubsequentEventMember2021-10-262021-10-260000820313us-gaap:SubsequentEventMember2021-10-252021-10-2500008203132020-10-202020-10-2000008203132020-10-192020-10-1900008203132019-12-3100008203132020-09-300000820313us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-09-300000820313us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-09-300000820313us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-09-300000820313us-gaap:FairValueMeasurementsRecurringMember2021-09-300000820313us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000820313us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000820313us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310000820313us-gaap:FairValueMeasurementsRecurringMember2020-12-310000820313aph:MtsSystemsCorporationMember2021-04-070000820313aph:MtsSystemsCorporationMember2020-12-090000820313aph:MtsSystemsCorporationMember2021-09-300000820313aph:MtsSystemsCorporationMember2021-01-012021-09-300000820313aph:MtsSensorsMemberaph:BacklogMember2021-01-012021-09-300000820313us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-3000008203132021-07-012021-09-300000820313us-gaap:AdditionalPaidInCapitalMember2021-01-012021-09-300000820313us-gaap:AdditionalPaidInCapitalMember2020-07-012020-09-3000008203132020-07-012020-09-300000820313us-gaap:AdditionalPaidInCapitalMember2020-01-012020-09-300000820313us-gaap:TechnologyBasedIntangibleAssetsMember2021-01-012021-09-300000820313us-gaap:CustomerRelationshipsMember2021-01-012021-09-300000820313aph:BacklogAndOtherMember2021-01-012021-09-3000008203132021-10-2600008203132021-09-3000008203132020-12-310000820313aph:MtsSystemsCorporationMember2021-04-072021-04-070000820313us-gaap:TreasuryStockCommonMember2021-07-012021-09-300000820313us-gaap:TreasuryStockCommonMember2021-01-012021-09-300000820313us-gaap:TreasuryStockCommonMember2020-07-012020-09-300000820313us-gaap:TreasuryStockCommonMember2020-01-012020-09-300000820313srt:MaximumMember2021-07-012021-09-300000820313srt:MaximumMember2021-01-012021-09-300000820313srt:MaximumMember2020-07-012020-09-300000820313srt:MaximumMember2020-01-012020-09-300000820313srt:MinimumMember2021-01-012021-09-300000820313aph:InterconnectProductsAndAssembliesMember2021-09-300000820313aph:MtsTestSimulationMember2021-01-012021-09-3000008203132021-05-2100008203132021-01-012021-09-3000008203132020-01-012020-09-300000820313aph:UnsecuredSeniorNotes2.200PercentDueSeptember2031Member2021-09-140000820313aph:EuroSeniorNotes0.750PercentDueMay2026Member2020-05-040000820313aph:UnsecuredSeniorNotes2.05PercentDueMarch2025Member2020-02-200000820313us-gaap:LineOfCreditMemberaph:UnsecuredCreditFacilityMember2021-09-300000820313aph:USCommercialPaperProgramMember2021-09-300000820313aph:UnsecuredSeniorNotes4.350PercentDueJune2029Member2021-09-300000820313aph:UnsecuredSeniorNotes4.00PercentDueFebruary2022Member2021-09-300000820313aph:UnsecuredSeniorNotes3.20PercentDueApril2024Member2021-09-300000820313aph:UnsecuredSeniorNotes3.125PercentDueInSeptember2021Member2021-09-300000820313aph:UnsecuredSeniorNotes2.800PercentDueFebruary2030Member2021-09-300000820313aph:UnsecuredSeniorNotes2.200PercentDueSeptember2031Member2021-09-300000820313aph:UnsecuredSeniorNotes2.05PercentDueMarch2025Member2021-09-300000820313aph:UnsecuredEuroSeniorNotes2.00PercentDueOctober2028Member2021-09-300000820313aph:UnsecuredEuroSeniorNotes0.750PercentDueMay2026Member2021-09-300000820313aph:OtherDebtMember2021-09-300000820313aph:EuroCommercialPaperProgramMember2021-09-300000820313us-gaap:LineOfCreditMemberaph:UnsecuredCreditFacilityMember2020-12-310000820313aph:USCommercialPaperProgramMember2020-12-310000820313aph:UnsecuredSeniorNotes4.350PercentDueJune2029Member2020-12-310000820313aph:UnsecuredSeniorNotes4.00PercentDueFebruary2022Member2020-12-310000820313aph:UnsecuredSeniorNotes3.20PercentDueApril2024Member2020-12-310000820313aph:UnsecuredSeniorNotes3.125PercentDueInSeptember2021Member2020-12-310000820313aph:UnsecuredSeniorNotes2.800PercentDueFebruary2030Member2020-12-310000820313aph:UnsecuredSeniorNotes2.200PercentDueSeptember2031Member2020-12-310000820313aph:UnsecuredSeniorNotes2.05PercentDueMarch2025Member2020-12-310000820313aph:UnsecuredEuroSeniorNotes2.00PercentDueOctober2028Member2020-12-310000820313aph:UnsecuredEuroSeniorNotes0.750PercentDueMay2026Member2020-12-310000820313aph:OtherDebtMember2020-12-310000820313aph:EuroCommercialPaperProgramMember2020-12-310000820313aph:MTSSystemsCorporationAndOther2021AcquisitionsMember2021-01-012021-09-30aph:segmentiso4217:USDiso4217:EURxbrli:purexbrli:sharesaph:agreementaph:itemiso4217:USDxbrli:sharesaph:contractaph:lawsuit

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

		For the quarterly period ended September 30, 2021 OR

☐		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 1-10879

AMPHENOL CORPORATION

(Exact name of registrant as specified in its charter)


Delaware	22-2785165
(State of Incorporation)	(IRS Employer Identification No.)

358 Hall Avenue

Wallingford, Connecticut 06492

(Address of principal executive offices) (Zip Code)

203-265-8900

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:



Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock, $0.001 par value	APH	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧ No ◻

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ⌧ No ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large Accelerated Filer ☒	Accelerated Filer ☐

Non-accelerated Filer ☐	Smaller Reporting Company ☐
	Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of October 26, 2021, the total number of shares outstanding of the registrant’s Class A Common Stock was 598,027,782.

Table of Contents

Amphenol Corporation

Index to Quarterly Report

on Form 10-Q

		Page

Part I	Financial Information

Item 1.	Financial Statements (unaudited):

	Condensed Consolidated Balance Sheets as of September 30, 2021 and December 31, 2020	2

	Condensed Consolidated Statements of Income for the Three and Nine Months Ended September 30, 2021 and 2020	3

	Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2021 and 2020	4

	Condensed Consolidated Statements of Cash Flow for the Nine Months Ended September 30, 2021 and 2020	5

	Notes to Condensed Consolidated Financial Statements	6

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	27

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	41

Item 4.	Controls and Procedures	41

Part II	Other Information

Item 1.	Legal Proceedings	42

Item 1A.	Risk Factors	42

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	42

Item 3.	Defaults Upon Senior Securities	43

Item 4.	Mine Safety Disclosures	43

Item 5.	Other Information	43

Item 6.	Exhibits	43

Signature		46

Table of Contents

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements

AMPHENOL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(dollars in millions)


	September 30,		December 31,
	2021		2020
ASSETS
Current Assets:
Cash and cash equivalents	$	1,268.1	$	1,702.0
Short-term investments		34.4		36.1
Total cash, cash equivalents and short-term investments		1,302.5		1,738.1
Accounts receivable, less allowance for doubtful accounts of $44.5 and $44.8, respectively		2,204.5		1,951.6
Inventories		1,952.5		1,462.2
Prepaid expenses and other current assets		392.1		338.9
Current assets held for sale		1,068.2		—
Total current assets		6,919.8		5,490.8

Property, plant and equipment, less accumulated depreciation of $1,881.3 and $1,738.6, respectively		1,175.4		1,054.6
Goodwill		5,839.4		5,032.1
Other intangible assets, net		603.6		397.5
Other long-term assets		387.9		352.3
	$	14,926.1	$	12,327.3

LIABILITIES & EQUITY
Current Liabilities:
Accounts payable	$	1,300.0	$	1,120.7
Accrued salaries, wages and employee benefits		224.9		195.4
Accrued income taxes		101.2		112.6
Accrued dividends		86.7		86.8
Other accrued expenses		666.1		558.5
Current portion of long-term debt		298.7		230.3
Current liabilities held for sale		207.4		—
Total current liabilities		2,885.0		2,304.3

Long-term debt, less current portion		4,950.0		3,636.2
Accrued pension and postretirement benefit obligations		221.6		228.6
Deferred income taxes		452.2		299.1
Other long-term liabilities		408.6		407.2

Equity:
Common stock		0.6		0.6
Additional paid-in capital		2,289.5		2,068.1
Retained earnings		4,080.6		3,705.4
Treasury stock, at cost		(89.3)		(111.1)
Accumulated other comprehensive loss		(335.5)		(278.1)
Total shareholders’ equity attributable to Amphenol Corporation		5,945.9		5,384.9

Noncontrolling interests		62.8		67.0
Total equity		6,008.7		5,451.9
	$	14,926.1	$	12,327.3

See accompanying notes to condensed consolidated financial statements.

Table of Contents

AMPHENOL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(dollars and shares in millions, except per share data)


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Net sales	$	2,818.5	$	2,323.4	$	7,849.5	$	6,172.9
Cost of sales		1,928.6		1,588.5		5,388.9		4,274.4
Gross profit		889.9		734.9		2,460.6		1,898.5
Acquisition-related expenses		—		—		55.4		—
Selling, general and administrative expenses		318.7		259.1		893.0		748.4
Operating income		571.2		475.8		1,512.2		1,150.1

Interest expense		(29.0)		(28.0)		(86.7)		(87.1)
Other income (expense), net		—		1.0		(0.3)		3.4
Income from continuing operations before income taxes		542.2		448.8		1,425.2		1,066.4
Provision for income taxes		(120.5)		(99.3)		(302.8)		(213.3)
Net income from continuing operations		421.7		349.5		1,122.4		853.1
Less: Net income from continuing operations attributable to noncontrolling interests		(2.9)		(2.9)		(6.9)		(6.7)
Net income from continuing operations attributable to Amphenol Corporation		418.8		346.6		1,115.5		846.4
Income from discontinued operations attributable to Amphenol Corporation, net of income taxes of ($1.5) and ($1.8) for 2021, respectively		7.7		—		10.3		—
Net income attributable to Amphenol Corporation	$	426.5	$	346.6	$	1,125.8	$	846.4

Net income per common share attributable to Amphenol Corporation — Basic:
Continuing operations	$	0.70	$	0.58	$	1.87	$	1.42
Discontinued operations, net of income taxes		0.01		—		0.02		—
Net income attributable to Amphenol Corporation — Basic	$	0.71	$	0.58	$	1.88	$	1.42

Weighted average common shares outstanding — Basic		597.7		597.5		597.8		595.2

Net income per common share attributable to Amphenol Corporation — Diluted:
Continuing operations	$	0.67	$	0.56	$	1.79	$	1.38
Discontinued operations, net of income taxes		0.01		—		0.02		—
Net income attributable to Amphenol Corporation — Diluted	$	0.68	$	0.56	$	1.80	$	1.38

Weighted average common shares outstanding — Diluted		625.8		616.4		624.6		612.5

Note: Per share amounts may not add due to rounding.

See accompanying notes to condensed consolidated financial statements.

Table of Contents

AMPHENOL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(dollars in millions)


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020

Net income from continuing operations	$	421.7	$	349.5	$	1,122.4	$	853.1
Add: Income from discontinued operations attributable to Amphenol Corporation, net of income taxes		7.7		—		10.3		—
Net income before allocation to noncontrolling interests	$	429.4	$	349.5	$	1,132.7	$	853.1

Total other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments		(39.7)		102.9		(72.2)		28.7
Unrealized (loss) gain on hedging activities		(0.5)		0.4		0.4		(0.2)
Pension and postretirement benefit plan adjustment, net of tax of ($1.6) and ($4.9) for 2021, and ($1.7) and ($5.0) for 2020, respectively		5.1		5.2		15.3		15.5
Total other comprehensive (loss) income, net of tax		(35.1)		108.5		(56.5)		44.0

Total comprehensive income		394.3		458.0		1,076.2		897.1

Less: Comprehensive income attributable to noncontrolling interests		(3.0)		(5.2)		(7.8)		(8.2)

Comprehensive income attributable to Amphenol Corporation	$	391.3	$	452.8	$	1,068.4	$	888.9

See accompanying notes to condensed consolidated financial statements.

Table of Contents

AMPHENOL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

(Unaudited)

(dollars in millions)


	Nine Months Ended September 30,
	2021		2020
Cash from operating activities:
Net income from continuing operations	$	1,122.4	$	853.1
Adjustments to reconcile net income from continuing operations to cash provided by operating activities from continuing operations:
Depreciation and amortization		274.5		218.0
Stock-based compensation expense		60.2		51.0
Deferred income tax provision (benefit)		24.9		(5.8)
Net change in components of working capital		(414.1)		38.6
Net change in other long-term assets and liabilities		(7.5)		(3.9)
Net cash provided by operating activities from continuing operations		1,060.4		1,151.0
Net cash provided by operating activities from discontinued operations		9.1		—
Net cash provided by operating activities		1,069.5		1,151.0

Cash from investing activities:
Capital expenditures		(274.2)		(204.8)
Proceeds from disposals of property, plant and equipment		2.4		10.8
Purchases of short-term investments		(128.0)		(89.3)
Sales and maturities of short-term investments		129.3		71.1
Acquisitions, net of cash acquired		(1,531.0)		(50.3)
Other		(8.5)		—
Net cash used in investing activities from continuing operations		(1,810.0)		(262.5)
Net cash used in investing activities from discontinued operations		(4.7)		—
Net cash used in investing activities		(1,814.7)		(262.5)

Cash from financing activities:
Proceeds from issuance of senior notes and other long-term debt		749.9		942.3
Repayments of senior notes and other long-term debt		(616.2)		(402.9)
Borrowings under credit facilities		—		1,567.4
Repayments under credit facilities		—		(1,568.1)
Borrowings (repayments) under commercial paper programs, net		925.0		(385.9)
Payment of costs related to debt financing		(6.1)		(8.7)
Payment of acquisition-related contingent consideration		—		(75.0)
Proceeds from exercise of stock options		180.9		256.6
Payment of deferred purchase price related to acquisitions		(4.1)		(16.2)
Distributions to and purchases of noncontrolling interests		(11.3)		(11.5)
Purchase of treasury stock		(491.0)		(459.2)
Dividend payments		(260.0)		(223.0)
Transfers to discontinued operations		(28.7)		—
Net cash provided by (used in) financing activities from continuing operations		438.4		(384.2)
Net cash used in financing activities from discontinued operations		(0.1)		—
Net cash provided by (used in) financing activities		438.3		(384.2)

Effect of exchange rate changes on cash and cash equivalents		(15.5)		25.0

Net (decrease) increase in cash and cash equivalents		(322.4)		529.3
Cash and cash equivalents balance, beginning of period		1,702.0		891.2
Cash and cash equivalents balance, end of period	$	1,379.6	$	1,420.5
Less: Cash and cash equivalents included in Current assets held for sale, end of period		111.5		—
Cash and cash equivalents balance of continuing operations, end of period	$	1,268.1	$	1,420.5

Cash paid for:
Interest	$	78.8	$	74.5
Income taxes, net		305.4		262.9

See accompanying notes to condensed consolidated financial statements.

Table of Contents

AMPHENOL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(amounts in millions, except share and per share data, unless otherwise noted)

Note 1—Basis of Presentation and Principles of Consolidation

The Condensed Consolidated Balance Sheets as of September 30, 2021 and December 31, 2020, the related Condensed Consolidated Statements of Income and Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2021 and 2020, and the related Condensed Consolidated Statements of Cash Flow for the nine months ended September 30, 2021 and 2020, include the accounts of Amphenol Corporation and its subsidiaries (“Amphenol,” the “Company,” “we,” “our,” or “us”). All material intercompany balances and transactions have been eliminated in consolidation. The condensed consolidated financial statements included herein are unaudited. In the opinion of management, the condensed consolidated financial statements reflect all adjustments, including normal recurring adjustments considered necessary for a fair presentation of the results, in conformity with accounting principles generally accepted in the United States of America. The results of operations for the three and nine months ended September 30, 2021 are not necessarily indicative of the results to be expected for the full year. These condensed consolidated financial statements and the related notes should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020 (the “2020 Annual Report”).

Stock Split

On January 27, 2021, the Company announced that its Board of Directors approved a two-for-one split of the Company’s Common Stock. The stock split was effected in the form of a stock dividend paid to shareholders of record as of the close of business on February 16, 2021. The additional shares were distributed on March 4, 2021, and the Company’s Common Stock began trading on a split-adjusted basis on March 5, 2021. As a result of the stock split, shareholders received one additional share of Amphenol Common Stock, $0.001 par value, for each share held as of the record date.

All current and prior year data presented in the accompanying Condensed Consolidated Financial Statements and notes thereto in this Form 10-Q, including but not limited to, number of shares and per share information, stock-based compensation data including stock options and restricted shares and related per share data, basic and diluted earnings per share, and dividends per share amounts, have been adjusted to reflect the effect of the stock split. As a result of the stock split, certain prior period amounts have been reclassified to conform to the current period presentation in the Condensed Consolidated Financial Statements and accompanying notes herein. The impact to the Condensed Consolidated Balance Sheets, as well as the rollforward of consolidated changes in equity included in Note 7 herein, was an increase of $0.3 to Common Stock, with an offsetting decrease in Additional paid-in capital, which has been retroactively adjusted for all periods presented.

While the stock split did not change the number of authorized common shares of the Company, in May 2021, the Company’s stockholders approved an amendment to the Company’s certificate of incorporation to increase the number of authorized shares of Common Stock, which amendment was filed and became effective on May 21, 2021. Refer to Note 7 herein for further details related to the increase in the number of shares of Common Stock authorized for issuance as a result of this amendment.

Discontinued Operations

The Company reports an operation’s assets and liabilities separately as “held for sale” when (1) management, having the authority to approve the action, commits to a plan to sell the discontinued operation, the plan of which is unlikely to have any significant changes or to be withdrawn, (2) the completed sale is probable within one year and (3) an active program to locate a buyer has been initiated with the operation actively marketed for sale at a price that is reasonable in relation to its current fair value and for immediate sale in its present condition. In December 2020, the Company signed a definitive agreement to acquire MTS Systems Corporation (Nasdaq: MTSC) (“MTS”) as more fully

Table of Contents

discussed in Note 11 herein. On January 19, 2021, the Company entered into a definitive agreement to sell the MTS Test & Simulation (“MTS T&S”) business to Illinois Tool Works Inc. (NYSE: ITW). The Company closed on the acquisition of MTS on April 7, 2021. The Company expects to close on the sale of the MTS T&S business as soon as all required regulatory approvals have been received and other customary closing conditions have been satisfied, which the Company expects to be within the one-year period outlined above. The Company concluded that the MTS T&S business met the “held for sale” criteria upon the closing of the MTS acquisition and, as such, the assets and liabilities are presented as held for sale and classified as current as of September 30, 2021 in the Condensed Consolidated Balance Sheets and accompanying Notes herein. The financial results and cash flows associated with the MTS T&S business are also accounted for as discontinued operations in the accompanying Condensed Consolidated Statements of Income and Statements of Cash Flow, respectively, for all current year periods presented. The comprehensive income associated with discontinued operations is not material and has not been separately presented in the Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2021.

Refer to Note 11 herein for further information related to the acquisition of MTS, along with Note 12 herein for further discussion of the Company’s discontinued operations associated with the MTS T&S business including the Company’s planned divestiture thereof.

Note 2—New Accounting Pronouncements

Recently Adopted Accounting Standards and Final SEC Rules

In December 2019, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which simplified income tax accounting in various areas. The Company evaluated ASU 2019-12 and adopted the standard on January 1, 2021. The adoption of ASU 2019-12 did not have a material impact on our consolidated financial statements.

In May 2020, the Securities and Exchange Commission (the “SEC”) issued a new rule regarding the financial statement requirements for acquisitions and dispositions of a business, which included, among other things, amending (i) certain criteria in the significance tests for acquired or to-be-acquired businesses, (ii) related pro forma financial information requirements, including its form and content, and (iii) related disclosure requirements, including the number of acquiree financial statement periods required to be presented in SEC filings. The final rule was effective for fiscal years beginning after December 31, 2020, with early application permitted. The Company evaluated this SEC final rule, which we adopted on January 1, 2021. To date, the final rule has not had a material impact on our condensed consolidated financial statements. Its impact on any future SEC filings will be dependent on the size of future business combinations and/or divestitures.

Recently Issued Accounting Standards and Final SEC Rules Not Yet Adopted

The United Kingdom’s Financial Conduct Authority (the “FCA”), which regulates the London Interbank Offered Rate (“LIBOR”), announced in July 2017 its intent to phase out the use of LIBOR by the end of 2021. In December 2020, the ICE Benchmark Administration published a consultation on its intention to extend the publication of certain U.S. dollar LIBOR (“USD LIBOR”) rates until June 30, 2023. Subsequently in March 2021, the FCA announced some USD LIBOR tenors (overnight, 1-month, 3-month, 6-month and 12-month) will continue to be published until June 30, 2023. The U.S. Federal Reserve, in conjunction with the Alternative Reference Rates Committee, a steering committee comprised of large U.S. financial institutions, identified the Secured Overnight Financing Rate (the “SOFR”) as its preferred benchmark alternative to USD LIBOR. The SOFR represents a measure of the cost of borrowing cash overnight, collateralized by U.S. Treasury securities, and is calculated based on directly observable U.S. Treasury-backed repurchase transactions. In March 2020, in response to this transition, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”), which provides optional expedients and exceptions for applying accounting principles generally accepted in the United States (“U.S. GAAP”) to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued by reference rate reform, and addresses operational issues likely to arise in modifying contracts to replace discontinued reference rates with new rates. ASU 2020-04 is effective as of March 12, 2020 through December 31, 2022. In January 2021, the FASB also issued ASU 2021-01 Reference Rate Reform (Topic

Table of Contents

848): Scope, which permits entities to elect certain optional expedients and exceptions when accounting for derivatives and certain hedging relationships affected by changes in interest rates and the transition. The Company is evaluating the potential impact of the replacement of LIBOR from both a risk management and financial reporting perspective. Our current portfolio of debt and financial instruments tied to LIBOR consists primarily of our Revolving Credit Facility (as defined below), which had no outstanding borrowings as of September 30, 2021. We do not currently believe that this transition will have a material impact on our financial condition, results of operations or cash flows.

In November 2020, the SEC issued a new rule that modernizes and simplifies various aspects and financial disclosure requirements in Regulation S-K, specifically related to Item 301 “Selected Financial Data”, Item 302 “Supplementary Financial Information” and Item 303 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” (“MD&A”). The intent of this new rule is to (i) eliminate duplicative disclosures, (ii) enhance and promote more principles-based MD&A disclosures with the objective of making them more meaningful for investors, all while (iii) simplifying the compliance requirements and efforts for registrants, by providing them with the flexibility to present management’s perspective on the registrant’s financial condition and results of operations. While most of the changes involve reducing or eliminating previously required information and disclosures, the rule does expand the disclosure requirements surrounding certain aspects of the various items in Regulation S-K discussed above. The final rule was published in the Federal Register on January 11, 2021, became effective thirty days after its publication date, or February 10, 2021, and registrants are required to comply with this final rule in the registrant’s first fiscal year ending on or after the date that is 210 days after the publication date (August 9, 2021). The Company has evaluated this SEC final rule, and we plan to incorporate the requirements and amendments of this SEC rule, in its entirety, as part of our Form 10-K for the year ending December 31, 2021. The application of this new SEC rule is not expected to have a material impact on our future SEC filings.

Note 3—Inventories

Inventories consist of:



	September 30,		December 31,
	2021		2020
Raw materials and supplies	$	815.2	$	587.4
Work in process		535.0		410.7
Finished goods		602.3		464.1
	$	1,952.5	$	1,462.2

Table of Contents

Note 4—Debt

The Company’s debt (net of any unamortized discount) consists of the following:


	September 30, 2021				December 31, 2020
	Carrying		Approximate		Carrying		Approximate
	Amount		Fair Value		Amount		Fair Value
Revolving Credit Facility	$	—	$	—	$	—	$	—
U.S. Commercial Paper Program		924.3		924.3		—		—
Euro Commercial Paper Program		—		—		—		—
3.125% Senior Notes due September 2021		—		—		227.7		231.6
4.00% Senior Notes due February 2022		295.0		295.8		294.9		303.6
3.20% Senior Notes due April 2024		349.9		369.6		349.8		378.1
2.050% Senior Notes due March 2025		399.5		412.4		399.4		420.7
0.750% Euro Senior Notes due May 2026		577.8		597.5		608.4		633.6
2.000% Euro Senior Notes due October 2028		577.7		649.1		608.4		694.9
4.350% Senior Notes due June 2029		499.6		579.2		499.6		608.4
2.800% Senior Notes due February 2030		899.4		945.6		899.4		987.8
2.200% Senior Notes due September 2031		747.3		742.9		—		—
Other debt		7.6		7.6		6.7		6.7
Less: unamortized deferred debt issuance costs		(29.4)		—		(27.8)		—
Total debt		5,248.7		5,524.0		3,866.5		4,265.4
Less: current portion		298.7		299.5		230.3		234.2
Total long-term debt	$	4,950.0	$	5,224.5	$	3,636.2	$	4,031.2

Revolving Credit Facility

The Company has a $2,500.0 unsecured credit facility (the “Revolving Credit Facility”), which matures January 2024 and gives the Company the ability to borrow, in various currencies, at a spread over LIBOR. The Company may utilize the Revolving Credit Facility for general corporate purposes. At September 30, 2021 and December 31, 2020, there were no outstanding borrowings under the Revolving Credit Facility. The carrying value of any borrowings under the Revolving Credit Facility would approximate their fair value due primarily to their market interest rates and would be classified as Level 2 in the fair value hierarchy (Note 5). Any outstanding borrowings under the Revolving Credit Facility are classified as long-term debt in the accompanying Condensed Consolidated Balance Sheets. The Revolving Credit Facility requires payment of certain annual agency and commitment fees and requires that the Company satisfy certain financial covenants. At September 30, 2021, the Company was in compliance with the financial covenants under the Revolving Credit Facility.

Commercial Paper Programs

The Company has a commercial paper program pursuant to which the Company may issue short-term unsecured commercial paper notes (the “USCP Notes”) in one or more private placements in the United States (the “U.S. Commercial Paper Program”). The maturities of the USCP Notes vary, but may not exceed 397 days from the date of issue. The USCP Notes are sold under customary terms in the commercial paper market and may be issued at par or a discount therefrom, and bear varying interest rates on a fixed or floating basis. The maximum aggregate principal amount outstanding of USCP Notes at any time is $2,500.0. On April 7, 2021, a combination of borrowings under the U.S. Commercial Paper Program and cash and cash equivalents on hand were used to fund the acquisition of MTS. Refer to Note 11 herein for further discussion of the acquisition of MTS. In addition, in the third quarter of 2021, the Company used borrowings under the U.S. Commercial Paper Program to redeem its unsecured 3.125% Senior Notes due September 15, 2021, of which $227.7 aggregate principal amount was outstanding. As of September 30, 2021, the amount of USCP Notes outstanding was $924.3, with a weighted average interest rate of 0.19%.

The Company and one of its wholly owned European subsidiaries (collectively, the “Euro Issuer”) also has a commercial paper program (the “Euro Commercial Paper Program” and, together with the U.S. Commercial Paper Program, the “Commercial Paper Programs”) pursuant to which the Euro Issuer may issue short-term unsecured

Table of Contents

commercial paper notes (the “ECP Notes” and, together with the USCP Notes, “Commercial Paper”), which are guaranteed by the Company and are to be issued outside of the United States. The maturities of the ECP Notes will vary, but may not exceed 183 days from the date of issue. The ECP Notes are sold under customary terms in the commercial paper market and may be issued at par or a discount therefrom or a premium thereto and bear varying interest rates on a fixed or floating basis. The ECP Notes may be issued in Euros, Sterling, U.S. dollars or other currencies. The maximum aggregate principal amount outstanding of ECP Notes at any time is $2,000.0. As of September 30, 2021, there were no ECP Notes outstanding.

Amounts available under the Commercial Paper Programs may be borrowed, repaid and re-borrowed from time to time. In conjunction with the Revolving Credit Facility, the authorization from the Company’s Board of Directors limits the maximum principal amount outstanding of USCP Notes, ECP Notes, and any other commercial paper or similar programs, along with outstanding amounts under the Revolving Credit Facility, at any time to $2,500.0 in the aggregate. The Commercial Paper Programs are rated A-2 by Standard & Poor’s and P-2 by Moody’s and are currently backstopped by the Revolving Credit Facility, as amounts undrawn under the Company’s Revolving Credit Facility are available to repay Commercial Paper, if necessary. Net proceeds of the issuances of Commercial Paper are expected to be used for general corporate purposes. The Commercial Paper is classified as long-term debt in the accompanying Condensed Consolidated Balance Sheets since the Company has the intent and ability to refinance the Commercial Paper on a long-term basis using the Company’s Revolving Credit Facility. The Commercial Paper is actively traded and is therefore classified as Level 1 in the fair value hierarchy (Note 5). The carrying value of Commercial Paper borrowings approximates their fair value.

U.S. Senior Notes

On September 14, 2021, the Company issued $750.0 principal amount of unsecured 2.200% Senior Notes due September 15, 2031 at 99.634% of face value (the “2031 Senior Notes”). The 2031 Senior Notes are unsecured and rank equally in right of payment with the Company’s other unsecured senior indebtedness. Interest on the 2031 Senior Notes is payable semiannually on March 15 and September 15 of each year, commencing on March 15, 2022. Prior to June 15, 2031, the Company may, at its option, redeem some or all of the 2031 Senior Notes at any time by paying the redemption price (which may include a make-whole premium), plus accrued and unpaid interest, if any, to, but not including, the date of redemption. If redeemed on or after June 15, 2031, the Company may, at its option, redeem some or all of the 2031 Senior Notes at any time by paying the redemption price equal to 100% of the principal amount thereof, plus accrued and unpaid interest, if any, to, but not including, the date of redemption. The Company used the net proceeds from the 2031 Senior Notes to repay certain outstanding borrowings under the U.S. Commercial Paper Program.

On February 20, 2020, the Company issued $400.0 principal amount of unsecured 2.050% Senior Notes due March 1, 2025 at 99.829% of face value (the “2025 Senior Notes”). The 2025 Senior Notes are unsecured and rank equally in right of payment with the Company’s other unsecured senior indebtedness. Interest on the 2025 Senior Notes is payable semiannually on March 1 and September 1 of each year, commencing on September 1, 2020. Prior to February 1, 2025, the Company may, at its option, redeem some or all of the 2025 Senior Notes at any time by paying the redemption price (which may include a make-whole premium), plus accrued and unpaid interest, if any, to, but not including, the date of redemption. If redeemed on or after February 1, 2025, the Company may, at its option, redeem some or all of the 2025 Senior Notes at any time by paying the redemption price equal to 100% of the principal amount thereof, plus accrued and unpaid interest, if any, to, but not including, the date of redemption. On April 1, 2020, the Company used the net proceeds from the 2025 Senior Notes to repay the $400.0 principal amount of unsecured 2.20% Senior Notes due April 1, 2020 upon maturity.

All of the Company’s outstanding senior notes in the United States (the “U.S. Senior Notes”) are unsecured and rank equally in right of payment with the Company’s other unsecured senior indebtedness. Interest on each series of U.S. Senior Notes is payable semiannually. The Company may, at its option, redeem some or all of any series of U.S. Senior Notes at any time subject to certain terms and conditions, which include paying 100% of the principal amount, plus accrued and unpaid interest, if any, to the date of redemption, and, with certain exceptions, a make-whole premium. The fair value of each series of U.S. Senior Notes is based on recent bid prices in an active market and is therefore classified as Level 1 in the fair value hierarchy (Note 5). The remaining principal amount outstanding associated with

Table of Contents

the Company’s 4.00% Senior Notes (the “2022 Senior Notes”) due in February 2022 is recorded, net of the related unamortized discount and debt issuance costs, within Current portion of long-term debt in the accompanying Condensed Consolidated Balance Sheets as of September 30, 2021. On October 1, 2021, the Company issued a notice of full redemption to the holders of the 2022 Senior Notes, which will be redeemed at par value on November 1, 2021. The U.S. Senior Notes contain certain financial and non-financial covenants. At September 30, 2021, the Company was in compliance with the financial covenants under its U.S. Senior Notes.

Euro Senior Notes

On May 4, 2020, the Euro Issuer issued €500.0 (approximately $545.4 at date of issuance) principal amount of unsecured 0.750% Senior Notes due May 4, 2026 at 99.563% of face value (the “2026 Euro Notes” or the “0.750% Euro Senior Notes”, collectively with the 2.000% Euro Senior Notes due October 2028, the “Euro Notes”, and the Euro Notes collectively with the U.S. Senior Notes, the “Senior Notes”). The 2026 Euro Notes are unsecured and rank equally in right of payment with the Euro Issuer’s other unsecured senior indebtedness, and are fully and unconditionally guaranteed on a senior unsecured basis by the Company. Interest on the 2026 Euro Notes is payable annually on May 4 of each year, commencing on May 4, 2021. Prior to February 4, 2026, the Company may, at its option, redeem some or all of the 2026 Euro Notes at any time by paying the redemption price (which may include a make-whole premium), plus accrued and unpaid interest, if any, to, but not including, the date of redemption. If redeemed on or after February 4, 2026, the Company may, at its option, redeem some or all of the 2026 Euro Notes at any time by paying the redemption price equal to 100% of the principal amount thereof, plus accrued and unpaid interest, if any, to, but not including, the date of redemption. The Company used the net proceeds from the 2026 Euro Notes to repay amounts outstanding under the Revolving Credit Facility.

The Company’s Euro Notes are unsecured and rank equally in right of payment with the Euro Issuer’s other unsecured senior indebtedness, and are fully and unconditionally guaranteed on a senior unsecured basis by the Company. Interest on each series of Euro Notes is payable annually. The Company may, at its option, redeem some or all of any series of Euro Notes at any time subject to certain terms and conditions, which include paying 100% of the principal amount, plus accrued and unpaid interest, if any, to, but not including, the date of redemption, and, with certain exceptions, a make-whole premium. The fair value of each series of Euro Notes is based on recent bid prices in an active market and is therefore classified as Level 1 in the fair value hierarchy (Note 5). The Euro Notes contain certain financial and non-financial covenants. At September 30, 2021, the Company was in compliance with the financial covenants under its Euro Notes.

Note 5—Fair Value Measurements

Fair value is determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. These requirements establish market or observable inputs as the preferred source of values. Assumptions based on hypothetical transactions are used in the absence of market inputs. The Company does not have any non-financial instruments accounted for at fair value on a recurring basis.

The valuation techniques required are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. These two types of inputs create the following fair value hierarchy:

Level 1 Quoted prices for identical instruments in active markets.

Level 2 Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.

Level 3 Significant inputs to the valuation model are unobservable.

Table of Contents

The Company believes that the assets or liabilities currently subject to such standards with fair value disclosure requirements are primarily debt instruments, pension plan assets, short-term investments, and derivative instruments. Each of these assets and liabilities is discussed below, with the exception of debt instruments and pension plan assets, which are covered in Note 4 and Note 10, respectively, herein, in addition to the Notes to Consolidated Financial Statements in the 2020 Annual Report. Substantially all of the Company’s short-term investments consist of certificates of deposit with original maturities of twelve months or less and as such, are considered as Level 1 in the fair value hierarchy as they are traded in active markets for identical assets. The carrying amounts of these instruments, the majority of which are in non-U.S. bank accounts, approximate their fair value. The Company’s derivative instruments primarily consist of foreign exchange forward contracts, which are valued using bank quotations based on market observable inputs such as forward and spot rates and are therefore classified as Level 2 in the fair value hierarchy. The impact of the credit risk related to these financial assets is immaterial. The fair values of the Company’s financial and non-financial assets and liabilities subject to such standards as of September 30, 2021 and December 31, 2020 are as follows:

Fair Value Measurements

Quoted Prices in

Significant

Active Markets

Observable

Unobservable

for Identical

Inputs

Amphenol Corp (APH) SEC Filing 10-Q Quarterly Report for the period ending Thursday, September 30, 2021

SEC Filings

APH Valuations

APH Annual Reports

APH Quarterly Reports

APH Corporate News

Amphenol Corp

Amphenol Corp (APH) SEC Filing 10-Q Quarterly Report for the period ending Thursday, September 30, 2021

SEC Filings

APH Valuations

APH Annual Reports

APH Quarterly Reports

APH Corporate News

Last10K.com | 10-Q Quarterly Report Fri Oct 29 2021

Amphenol Corp