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Unaudited Quarterly Results
 12 Months Ended
Dec. 31, 2014
Unaudited Quarterly Results [Abstract]  
Unaudited Quarterly Results

16  Unaudited Quarterly Results

 

The Company's unaudited quarterly results are summarized below (in thousands, except per share data):

    First Second Third Fourth   
2014 Quarter Quarter Quarter Quarter Total
Net sales $ 430,508 $ 481,801 $ 493,165 $ 583,870 $ 1,989,344
Cost of sales   187,719   201,853   202,222   233,119   824,913
 Gross profit   242,789   279,948   290,943   350,751   1,164,431
Selling and administrative expenses   126,635   131,930   122,226   131,916   512,707
Research and development expenses   24,746   26,977   27,279   28,724   107,726
Acquired in-process research and development   -   -   -   15,456   15,456
Purchased intangibles amortization   2,647   2,646   2,725   2,616   10,634
 Operating income   88,761   118,395   138,713   172,039   517,908
Interest expense   (7,489)   (7,971)   (9,062)   (9,669)   (34,191)
Interest income   1,458   1,700   1,762   2,103   7,023
 Income from operations before               
  income taxes   82,730   112,124   131,413   164,473   490,740
Provision for income tax expense   12,428   15,595   17,916   13,181   59,120
 Net income $ 70,302 $ 96,529 $ 113,497 $ 151,292 $ 431,620
Net income per basic common share   0.83   1.14   1.36   1.82   5.12
Weighted-average number of basic               
 common shares   84,977   84,462   83,663   83,217   84,358
Net income per diluted common share   0.82   1.13   1.34   1.80   5.07
Weighted-average number of diluted               
 common shares and equivalents   85,873   85,177   84,401   84,015   85,151

    First Second Third Fourth   
2013 Quarter Quarter Quarter Quarter Total
Net sales $ 430,338 $ 451,115 $ 457,317 $ 565,448 $ 1,904,218
Cost of sales   174,568   188,329   191,568   228,991   783,456
 Gross profit   255,770   262,786   265,749   336,457   1,120,762
Selling and administrative expenses   118,660   123,062   120,563   130,680   492,965
Research and development expenses   25,312   24,650   23,599   26,975   100,536
Purchased intangibles amortization   2,393   2,382   2,518   2,625   9,918
 Operating income   109,405   112,692   119,069   176,177   517,343
Other expense (Note 3)   -   (1,575)   -   -   (1,575)
Interest expense   (7,185)   (7,580)   (7,358)   (7,927)   (30,050)
Interest income   1,187   1,179   946   1,075   4,387
 Income from operations before               
  income taxes   103,407   104,716   112,657   169,325   490,105
Provision for income tax (benefit) expense   (17,652)   15,402   14,609   27,743   40,102
 Net income $ 121,059 $ 89,314 $ 98,048 $ 141,582 $ 450,003
Net income per basic common share   1.41   1.04   1.15   1.67   5.27
Weighted-average number of basic               
 common shares   86,049   85,482   85,185   85,006   85,426
Net income per diluted common share   1.39   1.03   1.14   1.65   5.20
Weighted-average number of diluted               
 common shares and equivalents   87,215   86,576   86,364   86,017   86,546

The Company typically experiences an increase in sales in the fourth quarter, as a result of purchasing habits for capital goods of customers that tend to exhaust their spending budgets by calendar year end. Selling and administrative expenses are typically higher in the second and third quarters over the first quarter in each year as the Company's annual payroll merit increases take effect. Selling and administrative expenses will vary in the fourth quarter in relation to performance in the quarter and for the year.

 

In the fourth quarter of 2014, the Company recorded a $15 million charge related to acquired in-process research and development (see Note 2). In the first quarter of 2013, the Company recorded a $31 million net tax benefit related to the completion of tax audit examinations. In addition, the R&D Tax Credit was retroactively extended in January 2013 for the 2012 and 2013 tax years. The entire $3 million benefit related to the 2012 tax year was recorded in the first quarter of 2013, and the 2013 benefit is included in the annual effective tax rate (see Note 9).