Cover Page
Cover Page - shares | 3 Months Ended | |
Apr. 03, 2021 | May 05, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 3, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-37393 | |
Entity Registrant Name | SPX FLOW, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-3110748 | |
Entity Address, Address Line One | 13320 Ballantyne Corporate Place | |
Entity Address, Postal Zip Code | 28277 | |
Entity Address, City or Town | Charlotte, | |
Entity Address, State or Province | NC | |
City Area Code | 704 | |
Local Phone Number | 752-4400 | |
Title of 12(b) Security | Common Stock, Par Value $0.01 | |
Trading Symbol | FLOW | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 42,215,621 | |
Entity Central Index Key | 0001641991 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Income Statement [Abstract] | ||
Revenues | $ 363.8 | $ 289.5 |
Cost of products sold | 235.3 | 188.4 |
Gross profit | 128.5 | 101.1 |
Selling, general and administrative | 90.4 | 85.2 |
Intangible amortization | 3 | 2.8 |
Asset impairment charges | 0 | 1.9 |
Restructuring and other related charges | 9.2 | 2.6 |
Operating income | 25.9 | 8.6 |
Other income (expense), net | 6.3 | (1.5) |
Interest expense, net | (4.9) | (8.1) |
Income (loss) from continuing operations before income taxes | 27.3 | (1) |
Income tax benefit (provision) | (8.3) | 0.9 |
Income (loss) from continuing operations | 19 | (0.1) |
Loss from discontinued operations, net of tax | (0.3) | (5.1) |
Net income (loss) | 18.7 | (5.2) |
Less: Net income attributable to noncontrolling interests | 0.1 | 0.1 |
Net income (loss) attributable to SPX FLOW, Inc. | 18.6 | (5.3) |
Amounts attributable to SPX FLOW, Inc. common shareholders: | ||
Income (loss) from continuing operations, net of tax | 18.9 | (0.3) |
Loss from discontinued operations, net of tax | (0.3) | (5) |
Net income (loss) attributable to SPX FLOW, Inc. | $ 18.6 | $ (5.3) |
Basic income (loss) per share of common stock: | ||
Income (loss) per share from continuing operations (in dollars per share) | $ 0.45 | $ (0.01) |
Loss per share from discontinued operations (in dollars per share) | (0.01) | (0.12) |
Net income (loss) per share attributable to SPX FLOW, Inc. (in dollars per share) | 0.44 | (0.12) |
Diluted income (loss) per share of common stock: | ||
Income (loss) per share from continuing operations (in dollars per share) | 0.45 | (0.01) |
Loss per share from discontinued operations (in dollars per share) | (0.01) | (0.12) |
Net income (loss) per share attributable to SPX FLOW, Inc. (in dollars per share) | $ 0.44 | $ (0.12) |
Weighted average number of common shares outstanding - basic (in shares) | 41,999 | 42,570 |
Weighted average number of common shares outstanding - diluted (in shares) | 42,069 | 42,570 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 18.7 | $ (5.2) |
Other comprehensive loss, net: | ||
Net unrealized losses on qualifying cash flow hedges, net of tax benefit of $0.1 | 0 | (0.1) |
Foreign currency translation adjustments | (39.4) | (64.8) |
Other comprehensive loss, net | (39.4) | (64.9) |
Total comprehensive loss | (20.7) | (70.1) |
Less: Total comprehensive income (loss) attributable to noncontrolling interests | 0.2 | (0.5) |
Total comprehensive loss attributable to SPX FLOW, Inc. | $ (20.9) | $ (69.6) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) $ in Millions | 3 Months Ended |
Mar. 28, 2020USD ($) | |
Statement of Comprehensive Income [Abstract] | |
Net unrealized gains on qualifying cash flow hedges, tax provision (benefit) | $ (0.1) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Apr. 03, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and equivalents | $ 380.7 | $ 441.5 |
Accounts receivable, net | 242.3 | 232.6 |
Contract assets | 27.4 | 24.4 |
Inventories, net | 211 | 199.3 |
Other current assets | 30.7 | 27.4 |
Total current assets | 892.1 | 925.2 |
Property, plant and equipment: | ||
Land | 21.6 | 22.8 |
Buildings and leasehold improvements | 170.9 | 176.8 |
Machinery and equipment | 343.9 | 349.1 |
Property, plant and equipment, gross | 536.4 | 548.7 |
Accumulated depreciation | (309.3) | (320.6) |
Property, plant and equipment, net | 227.1 | 228.1 |
Goodwill | 587.1 | 569.7 |
Intangibles, net | 201.7 | 206 |
Other assets | 174.2 | 169.5 |
TOTAL ASSETS | 2,082.2 | 2,098.5 |
Current liabilities: | ||
Accounts payable | 167 | 149.1 |
Contract liabilities | 125.2 | 119.5 |
Accrued expenses | 166.9 | 178.7 |
Income taxes payable | 24.4 | 23 |
Short-term debt | 12 | 12.5 |
Current maturities of long-term debt | 0.1 | 0.1 |
Total current liabilities | 495.6 | 482.9 |
Long-term debt | 397.5 | 397.3 |
Deferred and other income taxes | 37.8 | 36.6 |
Other long-term liabilities | 114.8 | 117.5 |
Total long-term liabilities | 550.1 | 551.4 |
Commitments and contingent liabilities (Note 13) | ||
Mezzanine equity | 3.3 | 3.4 |
SPX FLOW, Inc. shareholders’ equity: | ||
Preferred stock, no par value, 3,000,000 shares authorized, and no shares issued and outstanding | 0 | 0 |
Common stock, par value $0.01 per share, 300,000,000 shares authorized, 43,785,024 issued and 42,299,135 outstanding at April 3, 2021, and 43,394,547 issued and 42,157,504 outstanding at December 31, 2020 | 0.4 | 0.4 |
Paid-in capital | 1,710.1 | 1,696.9 |
Accumulated deficit | (348.5) | (363.3) |
Accumulated other comprehensive loss | (265.9) | (226.4) |
Common stock in treasury (1,485,889 shares at April 3, 2021, and 1,237,043 shares at December 31, 2020) | (62.5) | (46.2) |
Total SPX FLOW, Inc. shareholders' equity | 1,033.6 | 1,061.4 |
Noncontrolling interests | (0.4) | (0.6) |
Total equity | 1,033.2 | 1,060.8 |
TOTAL LIABILITIES, MEZZANINE EQUITY AND EQUITY | $ 2,082.2 | $ 2,098.5 |
Common stock in treasury (in shares) | 1,485,889 | 1,237,043 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Apr. 03, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 3,000,000 | 3,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 43,785,024 | 43,394,547 |
Common stock, shares outstanding (in shares) | 42,299,135 | 42,157,504 |
Common stock in treasury (in shares) | 1,485,889 | 1,237,043 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Total SPX FLOW, Inc. Shareholders' Equity | Common Stock | Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Common Stock in Treasury | Noncontrolling Interests |
Beginning balance (in shares) at Dec. 31, 2019 | 42,600,000 | |||||||
Beginning balance at Dec. 31, 2019 | $ 873.1 | $ 862.4 | $ 0.4 | $ 1,677 | $ (369.2) | $ (426.5) | $ (19.3) | $ 10.7 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (5.2) | (5.3) | (5.3) | 0.1 | ||||
Other comprehensive income (loss) | (64.9) | (64.3) | (64.3) | (0.6) | ||||
Stock-based compensation expense | 4 | 4 | 4 | |||||
Restricted stock and restricted stock unit vesting, net of tax withholdings | (6.4) | (6.4) | (6.4) | |||||
Dividends attributable to noncontrolling interests | (1.4) | (1.4) | ||||||
Ending balance (in shares) at Mar. 28, 2020 | 42,600,000 | |||||||
Ending balance at Mar. 28, 2020 | $ 799.2 | 790.4 | $ 0.4 | 1,681 | (374.5) | (490.8) | (25.7) | 8.8 |
Beginning balance (in shares) at Dec. 31, 2020 | 42,157,504 | 42,200,000 | ||||||
Beginning balance at Dec. 31, 2020 | $ 1,060.8 | 1,061.4 | $ 0.4 | 1,696.9 | (363.3) | (226.4) | (46.2) | (0.6) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 18.7 | 18.6 | 18.6 | 0.1 | ||||
Other comprehensive income (loss) | (39.4) | (39.5) | (39.5) | 0.1 | ||||
Stock-based compensation expense | 2.8 | 2.8 | 2.8 | |||||
Exercise of stock options (in shares) | 200,000 | |||||||
Exercise of stock options | 10.4 | 10.4 | 10.4 | |||||
Restricted stock and restricted stock unit vesting, net of tax withholdings (in shares) | 100,000 | |||||||
Restricted stock and restricted stock unit vesting, net of tax withholdings | (6.4) | (6.4) | (6.4) | |||||
Common stock repurchases (in shares) | (158,000) | |||||||
Common stock repurchases | (9.9) | (9.9) | (9.9) | |||||
Dividends declared | $ (3.8) | (3.8) | (3.8) | |||||
Ending balance (in shares) at Apr. 03, 2021 | 42,299,135 | 42,300,000 | ||||||
Ending balance at Apr. 03, 2021 | $ 1,033.2 | $ 1,033.6 | $ 0.4 | $ 1,710.1 | $ (348.5) | $ (265.9) | $ (62.5) | $ (0.4) |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | Mar. 10, 2021 | Apr. 03, 2021 |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared per share (in dollars per share) | $ 0.09 | $ 0.09 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Cash flows from (used in) operating activities: | ||
Net income (loss) | $ 18.7 | $ (5.2) |
Less: Loss from discontinued operations, net of tax | (0.3) | (5.1) |
Income (loss) from continuing operations | 19 | (0.1) |
Adjustments to reconcile income (loss) from continuing operations to net cash from (used in) operating activities: | ||
Restructuring and other related charges | 9.2 | 2.6 |
Asset impairment charges | 0 | 1.9 |
Deferred income taxes | 0.8 | 0 |
Depreciation and amortization | 9.8 | 9.8 |
Stock-based compensation | 2.8 | 3.2 |
Pension and other employee benefits | 0.3 | 0.4 |
Losses (gains) on asset sales and other, net | (0.1) | 0.5 |
Gain on change in fair value of investment in equity security | (5.4) | 0 |
Changes in operating assets and liabilities, net of effects from business acquisition and discontinued operations: | ||
Accounts receivable and other assets | (18.2) | 17.3 |
Contract assets and liabilities, net | 4 | (1.7) |
Inventories | (13.1) | (15.2) |
Accounts payable, accrued expenses and other | (0.7) | (48.6) |
Cash spending on restructuring actions | (3.1) | (2.3) |
Net cash from (used in) continuing operations | 5.3 | (32.2) |
Net cash used in discontinued operations | (0.2) | (0.5) |
Net cash from (used in) operating activities | 5.1 | (32.7) |
Cash flows used in investing activities: | ||
Proceeds from asset sales and other, net | 0.2 | 0 |
Capital expenditures | (9.3) | (4.7) |
Payments to acquire businesses, net of cash acquired | (38) | 0 |
Net cash used in continuing operations | (47.1) | (4.7) |
Net cash used in discontinued operations | 0 | (5.5) |
Net cash used in investing activities | (47.1) | (10.2) |
Cash flows used in financing activities: | ||
Repayments of purchase card program, net | (0.6) | (7.7) |
Repayments of other financing arrangements | (1.2) | (0.2) |
Purchases of common stock | (9.9) | 0 |
Minimum withholdings paid on behalf of employees for net share settlements, net | (6.4) | (6.4) |
Proceeds from the exercise of employee stock options | 10.4 | 0 |
Dividends paid to noncontrolling interests in subsidiary | 0 | (1.2) |
Net cash used in continuing operations | (7.7) | (15.5) |
Net cash used in discontinued operations | 0 | (0.3) |
Net cash used in financing activities | (7.7) | (15.8) |
Change in cash, cash equivalents and restricted cash due to changes in foreign currency exchange rates | (11.2) | (0.9) |
Net change in cash, cash equivalents and restricted cash | (60.9) | (59.6) |
Consolidated cash, cash equivalents and restricted cash, beginning of period | 441.6 | 303.4 |
Consolidated cash, cash equivalents and restricted cash, end of period | 380.7 | 243.8 |
Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheets: | ||
Cash and cash equivalents | 380.7 | 235.9 |
Cash and cash equivalents included in assets of discontinued operations | 0 | 6.9 |
Restricted cash included in assets of discontinued operations | 0 | 1 |
Consolidated cash, cash equivalents and restricted cash | $ 380.7 | $ 243.8 |
CONDENSED CONSOLIDATED STATEM_7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Millions | 3 Months Ended |
Apr. 03, 2021USD ($) | |
UTG Mixing Group | |
Cash acquired from acquisition | $ 2.9 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Apr. 03, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | SPX FLOW, Inc. and its consolidated subsidiaries (“SPX FLOW,” ‘‘the Company,’’ “we,” “us,” or “our”) operate in two reportable segments: the Nutrition and Health segment and the Industrial segment. During the first quarter of 2021, the Company renamed its former "Food and Beverage" segment to the "Nutrition and Health" segment. Accordingly, all current and comparative period financial information for the segment has been presented as the Nutrition and Health segment in this Quarterly Report on Form 10-Q. Other than the change in name, there were no changes to the segment and there has been no change to prior period financial information of the segment. Unless otherwise indicated, amounts provided in these Notes pertain to continuing operations only and are denoted in millions of U.S. dollars. See Note 3 for information on discontinued operations and Note 4 for information on our reportable segments. We prepared the condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim reporting. As permitted under those rules and regulations, certain footnotes or other financial information normally required by accounting principles generally accepted in the United States (“GAAP”) can be condensed or omitted. The financial statements represent our accounts after the elimination of intercompany transactions and, in our opinion, include the adjustments (consisting only of normal and recurring items) necessary for their fair presentation. We experienced the adverse impacts of the novel coronavirus pandemic (“COVID-19” or the “COVID-19 pandemic”) beginning in the first quarter of 2020 and these adverse impacts are expected to continue in future quarters of 2021, and possibly longer. Despite the adverse impacts, there are no indications that the COVID-19 pandemic has resulted in a material decline in the carrying value of any assets, or a material change in the estimate of any contingent amounts, recorded in our condensed consolidated balance sheet as of April 3, 2021. However, there is uncertainty as to the duration and overall impact of the COVID-19 pandemic, which could result in an adverse material change in a future period to the estimates we have made related to the valuation of assets and contingent amounts, which could result in the impairment of certain assets or the recognition of costs due to increases in contingent amounts. Preparing financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from these estimates. The unaudited information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements contained in our 2020 Annual Report on Form 10-K. Interim results are not necessarily indicative of full year results and the condensed consolidated financial statements may not be indicative of the Company’s future performance. We establish actual interim closing dates using a fiscal calendar, which requires our businesses to close their books on the Saturday closest to the end of the first calendar quarter, with the second and third quarters being 91 days in length. Our fourth quarter ends on December 31. The interim closing dates for the first, second and third quarters of 2021 are April 3, July 3, and October 2, compared to the respective March 28, June 27, and September 26, 2020 dates. We had five more days in the first quarter of 2021 and will have six fewer days in the fourth quarter of 2021 than in the respective 2020 periods. |
NEW ACCOUNTING PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Apr. 03, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | NEW ACCOUNTING PRONOUNCEMENTS The following is a summary of new accounting pronouncements that apply or may apply to our business. In December 2019, the Financial Accounting Standards Board (the "FASB") issued an amendment to simplify the accounting for income taxes by, among other matters, eliminating certain existing exceptions related to the general approach in Accounting Standards Codification ("ASC") 740 relating to franchise taxes, reducing complexity in the interim-period accounting for year-to-date loss limitations and changes in tax laws, and clarifying the accounting for the step-up in the tax basis of goodwill. The transition requirements are primarily prospective and the effective date is for interim and annual reporting periods beginning after December 15, 2020. The adoption of this amendment by the Company on January 1, 2021 did not have a significant impact on our condensed consolidated financial statements. |
BUSINESS ACQUISITIONS, DISPOSAL
BUSINESS ACQUISITIONS, DISPOSALS AND DISCONTINUED OPERATIONS | 3 Months Ended |
Apr. 03, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
BUSINESS ACQUISITIONS, DISPOSALS AND DISCONTINUED OPERATIONS | BUSINESS ACQUISITIONS, DISPOSALS AND DISCONTINUED OPERATIONS Business Acquisitions On August 1, 2020, the Company completed the acquisition of POSI LOCK, Inc ("POSI LOCK"), a manufacturer of hydraulic and mechanical pullers used to remove certain parts from equipment in a variety of industries ranging from power transmission and light to heavy industrial applications. We purchased substantially all of the assets, including net working capital, long-term and intangible assets, and assumed certain liabilities of the business, for a cash payment of $10.0. The assets acquired and liabilities assumed in the POSI LOCK acquisition are recorded at their fair values based on expert valuations and management estimates and its results are reported in the Company's Industrial segment. Goodwill and intangible assets are expected to be fully deductible for tax purposes. The pro forma effects of the acquisition of POSI LOCK were not material to our condensed consolidated results of operations for the three months ended March 28, 2020. On January 18, 2021, the Company completed the acquisition of approximately 98% of the issued and outstanding shares of Plc Uutechnic Group Oyj ("UTG Mixing Group"), a public company listed on the Nasdaq Helsinki, for a cash payment of $38.0, net of cash acquired of $2.9 . UTG Mixing Group is a producer of various mixing solutions for the chemical, food, metallurgical and fertilizer, environmental technology, water treatment and pharmaceuticals markets and its results are reported in the Company's Industrial segment. The acquisition of UTG Mixing Group brings additional product, technology and technical expertise to the Company’s global portfolio of mixing products and process solutions, and will enable the Company to expand its sales network for existing mixer product lines and increase its European market presence with the addition of new mixer product brands. Du ring the first quarter of 2021, the Company initiated a squeeze-out process prescribed by Finnish law pursuant to which the Company will (a) acquire the remaining outstanding shares in UTG Mixing Group and (b) delist the shares of UTG Mixing Group from the Nasdaq Helsinki. The assets acquired and liabilities assumed in the UTG Mixing Group acquisition are recorded at their estimated fair values per preliminary management estimates. For property, plant and equipment, the seller's net book value of such assets was used as a preliminary estimate of fair value as of April 3, 2021, and no allocation of purchase price has been assigned to intangible assets as of April 3, 2021 as the related valuation analyses remain in progress. The excess of the purchase price over the aggregate fair values of the net assets recognized was recorded as "Goodwill" in the accompanying condensed consolidated balance sheet as of April 3, 2021. The estimates of fair values recognized as of April 3, 2021 are preliminary management estimates and are subject to change when such valuations and estimates are finalized. Goodwill and intangible assets are not deductible for non-U.S. tax purposes. The Company intends to make an election under Internal Revenue Code Section 338, which will treat the purchase as an asset acquisition for U.S. tax purposes. As a result, the goodwill and intangibles will be deductible for computing the U.S. tax on the earnings of non-U.S. subsidiaries. We expect to finalize the valuation of the intangible assets and property, plant and equipment during 2021. At this time, we expect the UTG Mixing Group's identifiable intangible assets acquired to consist of trademarks, customer relationships, technology, noncompete agreements and customer backlog. We do not expect the cumulative effect of amortization of such intangible assets to be significant to our condensed consolidated statements of operations, when recognized upon the finalization of the related valuation analyses. A summary of the purchase price paid for UTG Mixing Group as of January 18, 2021: Assets acquired: Current assets, including cash and equivalents of $2.9 $ 10.3 Property, plant and equipment 1.9 Goodwill 33.4 Other assets 1.7 Total assets acquired 47.3 Liabilities assumed: Current liabilities assumed (5.1) Long-term liabilities assumed (1.3) Total liabilities assumed (6.4) Net assets acquired $ 40.9 The pro forma effects of the acquisition of UTG Mixing Group were not material to our condensed consolidated results of operations for the three months ended April 3, 2021 or March 28, 2020. Business Disposals In November 2020, we completed the sale of a business in our Asia Pacific region, which had been included in the Industrial reportable segment, to a third party buyer for total proceeds of $4.7, net of cash disposed, which resulted in a pre-tax loss of $4.2 during the fourth quarter of 2020. During the first quarter of 2021, we substantially completed negotiations with the buyer related to the closing-date net-working-capital adjustment, which did not significantly impact our estimate of the pre-tax loss previously recorded. We expect to finalize the agreement and pay the related purchase price adjustment in the second quarter of 2021. Discontinued Operations We report businesses or asset groups as discontinued operations when, among other things, we commit to a plan to divest the business or asset group, we actively begin marketing the business or asset group, and when the sale of the business or asset group is deemed probable of occurrence within the next twelve months. On May 2, 2019, the Company announced that its Board of Directors had initiated a process to divest a substantial portion of the Company’s former Power and Energy reportable segment, excluding the Bran+Luebbe product line (collectively, the “Disposal Group”). In connection with this announcement and the continued development of the divestiture process thereafter, and in accordance with the criteria described above, we reported the Disposal Group as “held-for-sale”, and as discontinued operations, initially as of the end of our second quarter of 2019. In November 2019, we entered into a Purchase and Sale Agreement (the “Sale Agreement”) with an affiliate of Apollo Global Management, LLC (the “Buyer”), pursuant to which the Company agreed, indirectly through certain of its subsidiaries, to sell the businesses reflected as discontinued operations in the accompanying condensed consolidated financial statements to the Buyer for a gross purchase price of $475.0 (the “Transaction”). The gross purchase price of $475.0, which included the purchase price for a business based in India, was subject to (i) reductions based upon the level of certain deductions of the Disposal Group at the closing date, and (ii) certain adjustments based upon the level of net working capital, cash and debt of the Disposal Group at the closing date. The deductions included, for example, components of the "Contract Liabilities" and certain other current and long-term liabilities of the Disposal Group, as well as deductions for budgeted but un-incurred capital expenditures and other business infrastructure costs measured over periods defined in the Sale Agreement, but in all cases which expired at the closing date. Fiscal 2020 Discontinued Operations Developments and Sale Closure We recorded a pre-tax loss on Disposal Group of $8.5 during our first quarter of 2020 to reduce the carrying value of the Disposal Group to our estimate of the net proceeds expected to be realized upon finalization of the purchase price with the Buyer (which was subject to a customary period of review between the parties as discussed below), less estimated costs to sell. This loss was attributable primarily to a reduction in the U.S. dollar-denominated proceeds expected to be received from the Buyer, relative to the translated U.S. dollar-equivalent carrying values of certain non-U.S. businesses of the Disposal Group, located primarily in the U.K. and Europe, due to a strengthening of the U.S. dollar against the currencies of those businesses during the first quarter of 2020. On March 30, 2020, the Company completed the sale of substantially all Disposal Group businesses and received proceeds from the Buyer of $406.2, based on an estimate of certain adjustments to the gross purchase price as of the closing date and as discussed further above and, to a lesser extent, certain fees. The consummation of the sale to the Buyer of a remaining business based in India remained subject to regularly approvals at that time. As noted above, finalization of the purchase price with the Buyer remained subject to a customary period of review between the parties. We recorded a pre-tax loss on Disposal Group of $2.0 during our second quarter of 2020 related to estimated working capital adjustments and reflective of ongoing discussions with the Buyer at that time. The substantial portion of “Assets of Discontinued Operations” and “Liabilities of Discontinued Operations”, as well as cumulative foreign currency translation adjustment of $178.2 (previously included in the Company’s "Accumulated Other Comprehensive Loss" ("AOCL") balance) and “Noncontrolling Interests” of $1.2, which were removed from our consolidated balance sheet during the second quarter of 2020 in connection with completion of the sale, equaled the net proceeds received upon consummation of the Transaction. During the third quarter of 2020, we finalized the levels of net working capital, cash and debt, and deductions as of the closing date with the Buyer, which resulted in an additional $1.2 pre-tax loss on Disposal Group being recorded in our third quarter of 2020. The determination of the final settlement with the Buyer involved resolution of certain estimates and judgments based on, among other items, the interpretation and application of key terms of the Sale Agreement. In addition, during our third quarter of 2020, we recorded a $0.4 pre-tax loss on Disposal Group to reduce the carrying value of the business based in India, the sale of which remained subject to regulatory approvals. During the fourth quarter of 2020 and upon receiving relevant regulatory approvals, we completed the sale of the remaining net assets of the Disposal Group, based in India, to the Buyer for total proceeds of $6.3. Other Sale Agreement Considerations The Sale Agreement includes certain indemnification obligations which we believe are customary for transactions of this nature, including for certain tax obligations, to the extent such obligations relate to fiscal periods prior to the closing date and exceed amounts which are provided for in the balance sheet of the Disposal Group at closing. Concurrent with the closing of the Transaction, the parties entered into certain ancillary agreements including, among others, a Transition Services Agreement (the “TSA”). Under the TSA, SPX FLOW provides the Buyer with certain specified services for varying periods in order to ensure an orderly transition of the business following the closing at agreed-upon prices or rates, which we believe approximate fair market value for such services. These services include, among others, certain information technology, finance and human resources services, and $1.0 of income from such services was recognized as a component of "Other Income (Expense), net" during the three months ended April 3, 2021. Results and Significant Non-cash Operating Items and Capital Expenditures of Discontinued Operations: Losses from discontinued operations for the three months ended April 3, 2021 and March 28, 2020 were as follows: Three months ended April 3, 2021 March 28, 2020 Revenues $ — $ 110.7 Cost of products sold (1) — 75.3 Gross profit — 35.4 Selling, general and administrative (1) — 30.7 Loss on Disposal Group (2) 0.4 8.5 Restructuring and other related charges — 0.3 Operating loss (0.4) (4.1) Other income (expense), net — (0.3) Interest expense, net (3) — (1.6) Loss from discontinued operations before income taxes (0.4) (6.0) Income tax benefit (4) 0.1 0.9 Loss from discontinued operations, net of tax (0.3) (5.1) Less: Loss attributable to noncontrolling interests — (0.1) Loss from discontinued operations, net of tax and noncontrolling interests $ (0.3) $ (5.0) (1) During the three months ended March 28, 2020, there was no depreciation of property, plant and equipment or amortization of intangible assets, related to our discontinued operations, as the assets of the Disposal Group were classified as held-for-sale for the period. (2) See previous paragraphs for further discussion regarding the loss on Disposal Group recognized during the three months ended March 28, 2020. (3) In addition to any business-specific interest expense and income, the interest expense, net, of discontinued operations reflects an allocation of interest expense, including the amortization of deferred financing fees, related to the Company’s senior notes, senior credit facilities and former trade receivables financing arrangement. Interest expense related to such debt instruments and allocated to discontinued operations was $1.6 for the three months ended March 28, 2020. The allocation of the Company’s interest expense of these debt instruments was determined based on the proportional amount of average net assets of the discontinued operations to the Company’s average net assets during each period, with the Company’s average net assets determined excluding the average outstanding borrowings under such debt instruments during each period. (4) During the three months ended April 3, 2021, we recorded an income tax benefit of $0.1 on $0.4 of pre-tax loss from discontinued operations, resulting in an effective tax rate of 25.0%. This compares to an income tax benefit for the three months ended March 28, 2020 of $0.9 on $6.0 of pre-tax loss from discontinued operations, resulting in an effective tax rate of 15.0%. The effective tax rate for the first quarter of 2020 reflects the effect that the majority of the pre-tax loss on Disposal Group is not deductible in the various jurisdictions where the sale of the Disposal Group was to be recognized. As such, only $1.2 of tax benefit was recognized on the $8.5 pre-tax loss on Disposal Group. The following table summarizes the significant non-cash operating items and capital expenditures reflected in cash flows of discontinued operations for the three months ended April 3, 2021 and March 28, 2020: Three months ended April 3, 2021 March 28, 2020 Loss on Disposal Group (1) $ 0.4 $ 8.5 Capital expenditures — (5.5) (1) See previous paragraphs for further discussion regarding the loss on Disposal Group recognized during the three months ended March 28, 2020. |
INFORMATION ON REPORTABLE SEGME
INFORMATION ON REPORTABLE SEGMENTS, CORPORATE EXPENSE AND OTHER | 3 Months Ended |
Apr. 03, 2021 | |
Segment Reporting [Abstract] | |
INFORMATION ON REPORTABLE SEGMENTS, CORPORATE EXPENSE AND OTHER | INFORMATION ON REPORTABLE SEGMENTS, CORPORATE EXPENSE AND OTHER We innovate with customers to help feed and enhance the world by designing, delivering and servicing high value process solutions at the heart of growing and sustaining our diverse communities with operations in over 30 countries and sales in over 140 countries around the world. The Company's product offering is concentrated in process technologies that perform mixing, blending, fluid handling, separation, thermal heat transfer and other activities that are integral to processes performed across a wide variety of nutrition, health and industrial markets. In determining our reportable segments, we apply the threshold criteria of the Segment Reporting Topic of the Financial Accounting Standards Board Codification (the “Codification”) to operating income or loss of each segment before considering asset impairment charges, restructuring and other related charges, gains or losses on sales of businesses, pension and postretirement service costs and other indirect corporate expenses (including corporate stock-based compensation). This is consistent with the way our chief operating decision maker evaluates the results of each segment. Nutrition and Health The Nutrition and Health reportable segment operates in a regulated, global industry with customers who demand highly engineered, process solutions. Key demand drivers include dairy consumption, emerging market capacity expansion, sustainability and productivity initiatives, customer product innovation and food safety. Key products for the segment include homogenizers, pumps, valves, separators and heat exchangers. We also design and assemble process systems that integrate many of these products for our customers. Key brands include APV, Gerstenberg Schroeder, Seital and Waukesha Cherry-Burrell. Industrial The Industrial reportable segment primarily serves customers in the chemical, air treatment, mining, pharmaceutical, marine, infrastructure construction, general industrial and water treatment industries. Key demand drivers of this segment are tied to macroeconomic conditions and growth in the respective end markets we serve. Key products for the segment are air dryers, filtration equipment, mixers, pumps, hydraulic technologies and heat exchangers. Key brands include Airpel, APV, Bolting Systems, Bran+Luebbe, Deltech, Hankison, Jamix, Jemaco, Johnson Pump, LIGHTNIN, POSI LOCK, Power Team, Stelzer, Stone, and Uutechnic. Corporate Expense Corporate expense generally relates to the cost of our Charlotte, North Carolina corporate headquarters and our Asia Pacific center in Shanghai, China. Corporate expense also reflects stock-based compensation costs associated with corporate employees. Reportable Segment Financial Data Financial data for our reportable segments for the three months ended April 3, 2021 and March 28, 2020 were as follows: Three months ended April 3, 2021 March 28, 2020 Revenues: Nutrition and Health $ 171.6 $ 137.8 Industrial 192.2 151.7 Total revenues $ 363.8 $ 289.5 Income: Nutrition and Health $ 28.6 $ 19.4 Industrial 21.4 9.4 Total income for reportable segments 50.0 28.8 Corporate expense (1) 14.7 15.5 Pension and postretirement service costs 0.2 0.2 Asset impairment charges (2) — 1.9 Restructuring and other related charges 9.2 2.6 Consolidated operating income $ 25.9 $ 8.6 (1) Includes $0.0 and $2.4 for the three months ended April 3, 2021 and March 28, 2020, respectively, related to costs for certain centralized functions/services provided and/or administered by SPX FLOW that were previously charged to business units of which the related financial results of operations have been reclassified to discontinued operations. These centralized functions/services included, but were not limited to, information technology, shared services for accounting, payroll services, supply chain, and manufacturing and process improvement operations/services. These costs generally represent the costs of employees who provided such centralized functions/services to the business units reclassified as discontinued operations but who remained employees of SPX FLOW upon the disposition of the discontinued operations. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 3 Months Ended |
Apr. 03, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS Information regarding the nature, amount, timing and uncertainty of revenue, and the related cash flows, is noted in further detail below. Revenues Recognized Over Time The following table provides revenues recognized over time by reportable segment for the three months ended April 3, 2021 and March 28, 2020: Three months ended April 3, 2021 March 28, 2020 Revenues recognized over time: Nutrition and Health $ 71.2 $ 45.0 Industrial 11.5 6.0 Total revenues recognized over time $ 82.7 $ 51.0 Disaggregated Information about Revenues Our aftermarket revenues generally include sales of parts and service/maintenance support, and original equipment (“OE”) revenues generally include all other revenue streams. The following tables provide disaggregated information about our OE and aftermarket revenues by reportable segment for the three months ended April 3, 2021 and March 28, 2020: Three months ended April 3, 2021 Three months ended March 28, 2020 Original Equipment Aftermarket Total Revenues Original Equipment Aftermarket Total Revenues Nutrition and Health $ 107.0 $ 64.6 $ 171.6 $ 80.8 $ 57.0 $ 137.8 Industrial 128.9 63.3 192.2 94.9 56.8 151.7 Total revenues $ 235.9 $ 127.9 $ 363.8 $ 175.7 $ 113.8 $ 289.5 Contract Balances Our contract accounts receivable, assets and liabilities, and changes in such balances, were as follows: April 3, 2021 December 31, 2020 Change (1) Contract accounts receivable (2) $ 232.8 $ 219.8 $ 13.0 Contract assets 27.4 24.4 3.0 Contract liabilities (125.2) (119.5) (5.7) Net contract balance $ 135.0 $ 124.7 $ 10.3 (1) The $10.3 increase in our net contract balance from December 31, 2020 to April 3, 2021 was primarily due to (i) an increase in volume of revenues recognized at a point in time, partially due to the reduced adverse effects of the COVID-19 pandemic on the business during the three months ended April 3, 2021, (ii) the timing of advance and milestone payments received on certain Nutrition and Health contracts recognized over time, and of performance obligations satisfied and the related revenue recognized on such contracts, and (iii) an increase in net contract balance related to the acquisition of the UTG Mixing Group during the first quarter of 2021. (2) Included in “Accounts receivable, net” in our condensed consolidated balance sheets. Amounts are presented before consideration of the allowance for uncollectible accounts. During the three months ended April 3, 2021 and March 28, 2020, we recog nized revenues of $48.2 and $42.5 related to contract liabilities outstanding as of December 31, 2020 and 2019, respectively. Contract Costs As of April 3, 2021 and December 31, 2020, the Company recognized an asset related to the incremental costs of obtaining contracts with customers of $0.4, which is classified in “Other current assets” in the accompanying condensed consolidated balance sheets. Remaining Performance Obligations As of April 3, 2021 and March 28, 2020, the aggregate amount of our remaining performance obligations was $564.7 and $517.0, respectively. The Company expects to recognize revenue on approximat ely 93% and substantially all of our remaining performance obligations outstanding as of April 3, 2021 within the next 12 and 24 months, respective ly. |
RESTRUCTURING AND OTHER RELATED
RESTRUCTURING AND OTHER RELATED CHARGES | 3 Months Ended |
Apr. 03, 2021 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING AND OTHER RELATED CHARGES | RESTRUCTURING AND OTHER RELATED CHARGES Fiscal 2021 Global Cost Productivity Program In February 2021, we announced a global cost productivity program focused primarily on a reduction of our "Selling, general and administrative" ("SG&A") costs. The intent of this productivity initiative is to reduce our overall cost of doing business, including a plan to achieve $25.0 of annualized SG&A cost savings by the end of 2022 while simultaneously realigning our cost structure to support profitable growth. In connection with this program, we incurred $9.2 of restructuring and other related charges during the three months ended April 3, 2021. Such charges related primarily to severance and other costs associated with commercial, engineering, and certain operational employees across both segments and across each region in which our segments operate, as well as certain functional support employees across most of our corporate functions. Restructuring and other related charges for the three months ended April 3, 2021 and March 28, 2020 were as follows: Three months ended April 3, 2021 March 28, 2020 Nutrition and Health $ 2.7 $ 0.5 Industrial 4.0 1.8 Other 2.5 0.3 Total $ 9.2 $ 2.6 Restructuring and Other Related Charges By Reportable Segment Nutrition and Health — Charges for the three months ended April 3, 2021 related primarily to costs associated with the global restructuring program described above. Charges for the three months ended March 28, 2020 related to severance and other costs associated primarily with reductions in force of certain engineering, commercial and other functional support employees within the segment, across all regions in which the segment operates. Industrial — Charges for the three months ended April 3, 2021 related primarily to costs associated with the global restructuring program described above. Charges for the three months ended March 28, 2020 related to severance and other costs associated primarily with reductions in force of certain engineering, commercial and other functional support employees within the segment, across all regions in which the segment operates. Other — Charges for the three months ended April 3, 2021 related primarily to costs associated with the global restructuring program described above. Charges for the three months ended March 28, 2020 related to severance and other costs associated with the rationalization of certain corporate support functions. The following is an analysis of our restructuring liabilities (included in “Accrued expenses” in our condensed consolidated balance sheets) for the three months ended April 3, 2021 and March 28, 2020: Three months ended April 3, 2021 March 28, 2020 Balance at beginning of year $ 7.3 $ 7.6 Restructuring and other related charges (1) 8.8 2.3 Balance assumed in business acquisition 0.2 — Utilization — cash (3.1) (2.3) Currency translation adjustment and other (0.1) (0.2) Balance at end of period $ 13.1 $ 7.4 (1) Amounts that impacted restructuring and other related charges but not the restructuring liabilities included $0.4 and $0.3 of other related charges during the three months ended April 3, 2021 and March 28, 2020, respectively. |
INVENTORIES, NET
INVENTORIES, NET | 3 Months Ended |
Apr. 03, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES, NET | INVENTORIES, NET Inventories at April 3, 2021 and December 31, 2020 comprised the following: April 3, 2021 December 31, 2020 Finished goods $ 87.6 $ 86.1 Work in process 41.3 39.1 Raw materials and purchased parts 89.9 81.9 Total FIFO cost 218.8 207.1 Excess of FIFO cost over LIFO inventory value (7.8) (7.8) Total inventories $ 211.0 $ 199.3 Inventories include material, labor and factory overhead costs and are reduced, when necessary, to estimated net realizable values. Certain domestic inventories are valued using the last-in, first-out (“LIFO”) method. These inventories were approximately 12% and 11% of total inventory at April 3, 2021 and December 31, 2020, respectively. Other inventories are valued using the first-in, first-out (“FIFO”) method. |
GOODWILL, OTHER INTANGIBLE ASSE
GOODWILL, OTHER INTANGIBLE ASSETS AND ASSET IMPAIRMENT CHARGES | 3 Months Ended |
Apr. 03, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL, OTHER INTANGIBLE ASSETS AND ASSET IMPAIRMENT CHARGES | GOODWILL, OTHER INTANGIBLE ASSETS AND ASSET IMPAIRMENT CHARGES Goodwill The changes in the carrying amount of goodwill by reportable segment during the three months ended April 3, 2021 were as follows: December 31, 2020 Goodwill Resulting from Business Combination (1) Impairments Foreign Currency Translation and Other April 3, 2021 Nutrition and Health $ 270.2 $ — $ — $ (10.0) $ 260.2 Industrial (2) 299.5 33.4 — (6.0) 326.9 Total $ 569.7 $ 33.4 $ — $ (16.0) $ 587.1 (1) Reflects goodwill that arose from the UTG Mixing Group acquisition during the first quarter of 2021. See Note 3 for further discussion regarding the status of valuation analyses and our recognition of identifiable intangible assets as of April 3, 2021 in connection with the UTG Mixing Group's acquisition. The balance recognized as "Goodwill" in connection with this business combination is expected to decline when preliminary management estimates of the fair values of assets acquired and liabilities assumed, and related valuation analyses, are finalized. (2) The carrying amount of goodwill included $134.1 and $134.6 of accumulated impairments as of April 3, 2021 and December 31, 2020, respectively. We completed our annual impairment testing of goodwill (and indefinite-lived intangible assets that are not amortized) during the fourth quarter of 2020. The annual goodwill impairment tests indicated significant excess fair value over the carrying value of both of our reporting units. In consideration of (i) the order trends, business performance and operating results of our reporting units during the first quarter of 2021, as well as (ii) generally favorable global developments associated with the COVID-19 pandemic during the quarter, we do not expect the ongoing adverse impacts of the COVID-19 pandemic to have significantly affected the assumptions underlying our long-term revenue and cash flow growth rates, operating models or business strategies that comprised the assumptions utilized in our fourth quarter of 2020 annual impairment tests. We will continue to monitor the effects of the COVID-19 pandemic on our business in future periods in order to evaluate whether a triggering event has occurred, including evaluating the assumptions utilized in our fourth quarter of 2020 annual impairment testing. Should those conclusions continue to apply throughout the remaining fiscal quarters of 2021, we will perform our annual impairment testing of goodwill (and indefinite-lived intangible assets that are not amortized), during the fourth quarter of 2021 in conjunction with our annual financial planning process. In performing that annual impairment testing, we will assess, among other items, the effects of the COVID-19 pandemic, order trends and the operating cash flow performance of our reporting units. Other Intangibles, Net Identifiable intangible assets were as follows: April 3, 2021 December 31, 2020 Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value Intangible assets with determinable lives: Customer relationships $ 127.9 $ (107.9) $ 20.0 $ 131.1 $ (108.5) $ 22.6 Technology 63.2 (51.0) 12.2 65.8 (52.4) 13.4 Patents 5.4 (4.6) 0.8 5.5 (4.6) 0.9 Other 8.4 (8.4) — 8.7 (8.7) — 204.9 (171.9) 33.0 211.1 (174.2) 36.9 Trademarks with indefinite lives 168.7 — 168.7 169.1 — 169.1 Total $ 373.6 $ (171.9) $ 201.7 $ 380.2 $ (174.2) $ 206.0 As of April 3, 2021, the net carrying value of intangible assets with determinable lives consisted of the following by reportable segment: $18.8 in Nutrition and Health and $14.2 in Industrial. Trademarks with indefinite lives consisted of the following by reportable segment: $100.9 in Nutrition and Health and $67.8 in Industrial. See Note 3 for further discussion regarding the status of valuation analyses and our recognition of identifiable intangible assets as of April 3, 2021 in connection with the UTG Mixing Group acquisition consummated during the first quarter of 2021. No intangible asset impairment charges were recorded during the three months ended April 3, 2021 or March 28, 2020. Other changes in the gross carrying values of trademarks and other identifiable intangible assets during the three months ended April 3, 2021 related to foreign currency translation. Tangible Long-Lived Asset Impairment Charges As discussed in Note 4 , asset impairment charges of $1.9 during the three months ended March 28, 2020 resulted from management's decision within the quarter to discontinue a product line within the Industrial reportable segment. Such charges related to certain machinery and equipment of the segment. No asset impairment charges were recorded during the three months ended April 3, 2021. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 3 Months Ended |
Apr. 03, 2021 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS SPX FLOW sponsors a number of defined benefit pension plans and a postretirement plan. For all of these plans, changes in the fair value of plan assets and actuarial gains and losses are recognized to earnings in the fourth quarter of each year, unless earlier remeasurement is required. The remaining components of pension and postretirement expense, primarily service and interest costs and expected return on plan assets, are recorded on a quarterly basis. Components of Net Periodic Pension and Postretirement Benefit Expense Net periodic benefit expense for our foreign pension plans and our domestic pension and postretirement plans for the three months ended April 3, 2021 and March 28, 2020 included the following components: Foreign Pension Plans Domestic Pension and Postretirement Plans Total Statement of Operations Caption in Which Expense is Reported Three months ended April 3, 2021 March 28, 2020 April 3, 2021 March 28, 2020 April 3, 2021 March 28, 2020 Service cost $ 0.2 0.2 $ — $ — $ 0.2 $ 0.2 Selling, general and administrative Interest cost — 0.1 0.1 0.1 0.1 0.2 Other income (expense), net Total net periodic benefit expense $ 0.2 $ 0.3 $ 0.1 $ 0.1 $ 0.3 $ 0.4 |
INDEBTEDNESS
INDEBTEDNESS | 3 Months Ended |
Apr. 03, 2021 | |
Debt Disclosure [Abstract] | |
INDEBTEDNESS | INDEBTEDNESS Debt at April 3, 2021 and December 31, 2020 was comprised of the following: April 3, 2021 December 31, 2020 Term loan, due in June 2022 $ 100.0 $ 100.0 5.875% senior notes, due in August 2026 300.0 300.0 Other indebtedness (1) 12.5 13.0 Less: deferred financing fees (2) (2.9) (3.1) Total debt 409.6 409.9 Less: short-term debt 12.0 12.5 Less: current maturities of long-term debt 0.1 0.1 Total long-term debt $ 397.5 $ 397.3 (1) Primarily includes finance lease obligations of $0.5 and $0.5 and balances under a purchase card program of $11.9 and $12.5 as of April 3, 2021 and December 31, 2020, respectively. The purchase card program allows for payment beyond customary payment terms for goods and services acquired under the program. As this arrangement extends the payment of these purchases beyond their normal payment terms through third-party lending institutions, we have classified these amounts as short-term debt. (2) Deferred financing fees were comprised of fees related to the term loan and senior notes. A detailed description of our senior credit facilities and senior notes is included in our consolidated financial statements included in our 2020 Annual Report on Form 10-K. The interest rate of outstanding borrowings under our term loan, due June 2022, was approximately 1.5% at April 3, 2021 and December 31, 2020. At April 3, 2021, we had $494.7 of borrowing capacity under our revolving credit facilities after giving effect to $5.3 reserved for outstanding letters of credit. In addition, at April 3, 2021, we had $102.4 of available issuance capacity under our foreign credit instrument facilities after giving effect to $47.6 reserved for outstanding bank guarantees. In addition, we had $4.9 of bank guarantees outstanding under the senior credit facilities that, once satisfied, cannot be reissued. At April 3, 2021, in addition to the revolving lines of credit described above, we had approximately $7.0 of letters of credit outstanding under separate arrangements in China and India. Certain of our current and future debt and derivative financial instruments have, or in the future, could have interest rates that are tied to reference rates, such as LIBOR. The volatility and availability of such reference rates, including establishment of alternative reference rates, is out of our control. Changes to or the unavailability of such rates or the manner for calculation of such reference rates, could result in increases to the cost of our debt. At April 3, 2021, we were in compliance with all covenants of our senior credit facilities and senior notes. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended |
Apr. 03, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS We manufacture and sell our products in a number of countries and, as a result, are exposed to movements in foreign currency ( “ FX ” ) exchange rates. Our objective is to preserve the economic value of non-functional currency-denominated cash flows and to minimize the impact of changes as a result of currency fluctuations. Our principal currency exposures relate to the Euro, Chinese Yuan and British Pound. We had FX forward contracts with an aggregate notional amount of $34.5 and $40.7 outstanding as of April 3, 2021 and December 31, 2020, respectively, with all such contracts scheduled to mature within one year. We also had FX embedded derivatives with an aggregate notional amount of $0.2 and $5.5 at April 3, 2021 and December 31, 2020, respectively, with all such contracts scheduled to mature within one year. There were no unrealized gains or losses recorded in accumulated other comprehensive loss related to FX forward contracts as of April 3, 2021 and December 31, 2020, respectively. The net losses recorded in “ Other income (expense), net ” related to FX losses totaled $0.1 and $0.8 for the three months ended April 3, 2021 and March 28, 2020, respectively. We enter into arrangements designed to provide the right of setoff in the event of counterparty default or insolvency, and have elected to offset the fair values of our FX forward contracts in our condensed consolidated balance sheets. The gross fair values of our FX forward contracts and FX embedded derivatives, in aggregate, were $0.0 and $0.2 (gross assets) and $0.0 and $0.0 (gross liabilities) at April 3, 2021 and December 31, 2020, respectively. |
EQUITY AND STOCK-BASED COMPENSA
EQUITY AND STOCK-BASED COMPENSATION | 3 Months Ended |
Apr. 03, 2021 | |
Equity [Abstract] | |
EQUITY AND STOCK-BASED COMPENSATION | EQUITY AND STOCK-BASED COMPENSATION Income (Loss) Per Share The following table sets forth the number of weighted-average shares outstanding used in the computation of basic and diluted income (loss) per share: Three months ended April 3, 2021 March 28, 2020 Weighted-average shares outstanding, basic 41.999 42.570 Dilutive effect of share-based awards 0.070 — Weighted-average shares outstanding, dilutive (1) 42.069 42.570 (1) Unvested restricted stock shares/units not included in the computation of diluted income per share because required market thresholds for vesting (as discussed below) were not met, were 0.000 and 0.110 for the three months ended April 3, 2021 and March 28, 2020, respectively. Unvested restricted stock shares/units not included in the computation of diluted income per share because required internal performance thresholds for vesting (as discussed below) were not met, were 0.069 and 0.185 for the three months ended April 3, 2021 and March 28, 2020, respectively. Stock options outstanding excluded from the computation of diluted income per share because their exercise price was greater than the average market price of common shares were 0.342 for the three months ended March 28, 2020. No stock options outstanding were excluded from the computation of diluted income per share for the three months ended April 3, 2021. Stock-Based Compensation SPX FLOW stock-based compensation awards may be granted to certain eligible employees or non-employee directors under the SPX FLOW Stock Compensation Plan (the “Stock Plan”). Under the Stock Plan, up to 1.674 unissued shares of our common stock were available for future grant as of April 3, 2021. The Stock Plan permits the issuance of authorized but unissued shares or shares from treasury upon the vesting of restricted stock units, granting of restricted stock shares or exercise of stock options. Each restricted stock share, restricted stock unit and stock option granted reduces share availability under the Stock Plan by one share. Restricted stock shares or restricted stock units may be granted to certain eligible employees or non-employee directors in accordance with the Stock Plan and applicable award agreements. Subject to participants' continued service and other award terms and conditions, the restrictions lapse and awards generally vest over a period of time, generally three years (or one year for awards to non-employee directors). In some instances, such as death, disability, or retirement, awards may vest concurrently with or following an employee's termination. Approximately half of such restricted stock shares and restricted stock unit awards vest based on performance thresholds, while the remaining portion vest based on the passage of time since grant date. Eligible employees, including officers, were granted 2021 target performance awards, during the three months ended April 3, 2021, in which the employee can earn between 50% and 200% of the target performance award in the event, and to the extent, the award meets the required performance vesting criteria. Such awards are generally subject to the employees’ continued employment during the three-year vesting period, and may be completely forfeited if the threshold performance criteria are not met. Vesting for the 2021 target performance awards is based on SPX FLOW shareholder return versus the performance of a composite group of companies, as established under the awards (the “ Composite Group ” ), over the three-year period from January 1, 2021 through December 31, 2023. In the event of vesting, the 2021 target performance awards based on shareholder return performance generally restrict the recipient from selling, transferring, pledging or assigning the underlying shares for a one-year period, ending December 31, 2024, other than for tax withholding. These target performance awards were issued as restricted stock units to eligible employees, including officers. In addition, certain eligible employees, including officers, were granted 2021 target performance awards during the three months ended April 3, 2021 that vest subject to attainment of stated operating income margin threshold (as defined under the awards) measured at the conclusion of the measurement period ending December 31, 2023 (including eligible employees’ continued employment during the measurement period). These target performance awards were issued as restricted stock units to eligible employees, including officers. Eligible employees, including officers, also were granted 2021 awards, during the three months ended April 3, 2021, that vest ratably over three years, subject to the passage of time and the employees’ continued employment during such period. In some instances, such as death, disability, or retirement, awards may vest concurrently with or following an employee's termination. These awards were issued as restricted stock units to eligible employees, including officers. In accordance with terms of the Sale Agreement entered into with the Buyer, all awards granted to SPX FLOW employees who became employees of the Buyer upon closing of the Transaction on March 30, 2020, and that vest subject to the passage of time and the employees’ continued employment that would have otherwise vested within the twelve-month period following the closing date of the Transaction, vested as of March 30, 2020. Target performance awards granted in 2017 to such employees that vest subject to (i) SPX FLOW shareholder return versus the Composite Group or (ii) attainment of stated improvements in the three-year average annual return on invested capital, vested according to the terms of the underlying award agreements (including continued employment during the measurement period). All other outstanding share-based awards to SPX FLOW employees who became employees of the Buyer that did not vest under these conditions, were forfeited as of March 30, 2020. Restricted stock unit awards granted to eligible employees, including officers, during the three months ended April 3, 2021, include early retirement provisions which permit recipients to be eligible for vesting generally upon reaching the age of 60 and completing ten years of service (and, if applicable, subject to the attainment of performance measures). Restricted stock units that do not vest within the applicable vesting period are forfeited. Stock options may be granted to eligible employees in the form of incentive stock options or nonqualified stock options. The option price per share may be no less than the fair market value of our common stock at the close of business on the date of grant. Upon exercise, the employee has the option to surrender previously owned shares at current value in payment of the exercise price and/or for withholding tax obligations. The recognition of compensation expense for share-based awards is based on their grant-date fair values. The fair value of each award is amortized over the lesser of the award's requisite or derived service period, which is generally up to three years as noted above. For the three months ended April 3, 2021 and March 28, 2020, we recognized compensation expense related to share-based programs in “Selling, general and administrative” expense in the accompanying condensed consolidated statements of operations as follows: Three months ended April 3, 2021 March 28, 2020 Stock-based compensation expense - continuing and discontinued operations $ 2.8 $ 4.0 Less: stock-based compensation expense recognized in discontinued operations — 0.8 Stock-based compensation expense recognized in continuing operations 2.8 3.2 Income tax benefit (0.4) (0.8) Stock-based compensation expense, net of income tax benefit $ 2.4 $ 2.4 Restricted Stock Unit Awards The Monte Carlo simulation model valuation technique was used to determine the fair value of our 2021 restricted stock units that contain a “market condition.” The Monte Carlo simulation model utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the award and calculates the fair value of each restricted stock unit award. The valuation of such 2021 awards also reflects an illiquidity discount of 14.6%, determined utilizing the Chafee model valuation technique, and related to the one-year period that recipients are restricted from selling, transferring, pledging or assigning the underlying shares, in the event of vesting and as discussed above. The following assumptions were used in determining the fair value of the awards granted on the date indicated below: Annual Expected Stock Price Volatility Annual Expected Dividend Yield Risk-free Interest Rate Correlations Between Total Shareholder Return for SPX FLOW and Individual Companies in the Composite Group Minimum Average Maximum March 8, 2021: SPX FLOW 50.3 % — % 0.20 % 0.2214 0.5645 0.8241 Composite Group 43.8 % n/a 0.22 % Annual expected stock price volatility was based on the weighted average of SPX FLOW's historical volatility as of the grant date. An expected annual dividend yield was not assumed as dividends were not granted on common shares by SPX FLOW as of the March 8, 2021 grant date of the awards. The average risk-free interest rate was based on an interpolation between the two-year and three-year daily treasury yield curve rates as of the grant date. The following table summarizes the unvested restricted stock share and restricted stock unit activity for the three months ended April 3, 2021: Unvested Restricted Stock Shares and Restricted Stock Units Weighted-Average Grant-Date Fair Value Per Share Outstanding at December 31, 2020 0.931 $37.03 Granted 0.300 66.81 Vested (0.239) 40.90 Forfeited and other (0.072) 46.21 Outstanding at April 3, 2021 0.920 $45.00 As of April 3, 2021, there was $31.8 of unrecognized compensation cost related to restricted stock share and restricted stock unit compensation arrangements. We expect this cost to be recognized over a weighted-average period of 2.30 years. Stock Options There were 0.133 and 0.301 of SPX FLOW stock options outstanding as of April 3, 2021 and December 31, 2020, respectively, all of which were exercisable as of April 3, 2021 and December 31, 2020. The decrease in the first quarter of 2021 was due to 0.168 of stock options exercised during the quarter. The weighted-average exercise price per share of the stock options is $61.29 and the weighted-average grant-date fair value per share is $19.33. The term of these options expires on January 2, 2025 (subject to earlier expiration upon a recipient's termination of service as provided under the awards). There was no unrecognized compensation cost related to these stock options as of April 3, 2021. Accumulated Other Comprehensive Loss Substantially all of accumulated other comprehensive loss (“AOCL”) as of April 3, 2021 and December 31, 2020 was foreign currency translation adjustment. See the condensed consolidated statements of comprehensive loss for changes in AOCL for the three months ended April 3, 2021 and March 28, 2020. Common Stock in Treasury During the three months ended April 3, 2021 and March 28, 2020, “Common stock in treasury” was increased by $6.4 for common stock that was surrendered by recipients of restricted stock as a means of funding the related applicable income tax withholding requirements. During the three months ended April 3, 2021 we repurchased 0.158 shares of our common stock for cash consideration of $9.9 in accordance with a share repurchase program authorized by our Board of Directors for the purchase of up to $150.0 shares of our common stock on or before December 31, 2021. As of April 3, 2021, there remained $120.2 in shares available to be purchased by the Company under the share repurchase program. Dividends On March 10, 2021, we announced the declaration of a quarterly dividend on our common stock of $0.09 per share, paid on April 14, 2021 to stockholders of record as of the close of business on March 24, 2021. The accrual of the dividend payable of $3.8 is reflected in "Accrued expenses" in our accompanying condensed consolidated balance sheet as of April 3, 2021. |
LITIGATION, CONTINGENT LIABILIT
LITIGATION, CONTINGENT LIABILITIES AND OTHER MATTERS | 3 Months Ended |
Apr. 03, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
LITIGATION, CONTINGENT LIABILITIES AND OTHER MATTERS | LITIGATION, CONTINGENT LIABILITIES AND OTHER MATTERS Various claims, complaints and proceedings arising in the ordinary course of business, including those relating to litigation matters (e.g., class actions, derivative lawsuits and contracts, intellectual property and competitive claims, and claims to certain indemnification obligations arising from previous acquisitions/dispositions), have been filed or are pending against us and certain of our subsidiaries. We believe these matters are either without merit or of a kind that should not have a material effect, individually or in the aggregate, on our financial position, results of operations or cash flows. We are subject to domestic and international environmental protection laws and regulations with respect to our business operations and are operating in compliance with, or taking action aimed at ensuring compliance with, these laws and regulations. We believe our compliance obligations with environmental protection laws and regulations should not have a material effect, individually or in the aggregate, on our financial position, results of operations or cash flows. Mezzanine Equity Independent noncontrolling shareholders in certain foreign subsidiaries of the Company have put options under their respective joint venture operating agreements that allow them to sell their common stock to the controlling shareholders (wholly-owned subsidiaries of SPX FLOW) upon the satisfaction of certain conditions, including the passage of time. The respective carrying values presented in “ Mezzanine equity ” of our condensed consolidated balance sheets as of April 3, 2021 and December 31, 2020 are stated at the current exercise value of the put options, irrespective of whether the options are currently exercisable. To the extent the noncontrolling interests' put option price is correlated with the estimated fair value of the subsidiary, we have used the market method to estimate such fair values. This represents a Level 3 fair value measurement as described in Note 15 . During the first quarter of 2020, the noncontrolling interest shareholder of a joint venture exercised certain put options and, during the third quarter of 2020, the Company and such shareholder reached an agreement for the Company to purchase all noncontrolling interest shares in that joint venture at an agreed-upon price. In accordance with the agreement, we paid $15.0 during the year ended December 31, 2020 to purchase the shares. In connection with the share purchase of $15.0, we reduced “Noncontrolling interests” by $7.7 to reflect the reduction in the noncontrolling shareholder’s cumulative carrying value of ownership interest in the joint venture during 2020, with the remainder of the purchase price paid reflected as a reduction of “Paid-in capital”. In addition, as a result of the share purchase during the year ended December 31, 2020, we reflected the settlement of the related put options during the year as a reduction of “Mezzanine equity” of $15.0, with an increase of “Paid-in capital”. We have $3.3 and $3.4 of current exercise value of put options outstanding as of April 3, 2021 and December 31, 2020, respectively, related to a different foreign subsidiary than that discussed above and all of which became exercisable during 2020. The carrying value of such put options is recorded based on our best estimate of the ultimate redemption value of the put options. If and when such options are exercised, we expect to settle the option value in cash. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Apr. 03, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Unrecognized Tax Benefits As of April 3, 2021, we had gross unrecognized tax benefits of $16.0 (net unrecognized tax benefits of $15.1), of which $10.0, if recognized, would impact our effective tax rate from continuing operations. We classify interest and penalties related to unrecognized tax benefits as a component of our income tax provision. As of April 3, 2021, gross accrued interest totaled $0.9 (net accrued interest of $0.8), and there was no accrual for penalties included in our unrecognized tax benefits. Based on the outcome of certain examinations or as a result of the expiration of statutes of limitations for certain jurisdictions, we believe that within the next 12 months it is reasonably possible that our previously unrecognized tax benefits could decrease by $0.5 to $1.0. The previously unrecognized tax benefits relate to transfer pricing matters. The unrecognized tax benefits described above represent amounts that were included in tax returns filed by the Company. Historically, a portion of the Company's operations were included in tax returns filed by SPX Corporation (the “ former Parent ” ) or its subsidiaries that were not part of our spin-off from the former Parent effected on September 26, 2015 (the “ Spin-Off ” ). As a result, some uncertain tax positions related to the Company's operations resulted in unrecognized tax benefits that are now potential obligations of the former Parent or its subsidiaries that were part of the Spin-Off. In addition, some of the Company's tax returns included the operations of the former Parent's subsidiaries that were not part of the Spin-Off. In certain of these cases, these subsidiaries' activities gave rise to unrecognized tax benefits for which the Company could be potentially liable. When required under the Income Taxes Topic of the Codification, we have recorded a liability for these uncertain tax positions within our condensed consolidated balance sheets. Other Tax Matters During the three months ended April 3, 2021, we recorded an income tax provision of $8.3 on $27.3 of pre-tax income, resulting in an effective tax rate of 30.4%. This compares to an income tax benefit for the three months ended March 28, 2020 of $0.9 on $1.0 of pre-tax loss, resulting in an effective tax rate of 90.0%. The effective tax rate for the first quarter of 2021 was impacted by an income tax charge of $1.7 resulting from losses occurring in the quarter in certain jurisdictions where the benefit of those losses is not expected to be realized. The effective tax rate for the first quarter of 2020 was impacted by an income tax benefit of $1.2 resulting from tax return adjustments for certain of the Company's subsidiaries, which was partially offset by an income tax charge of $0.6 resulting from losses occurring in the quarter in certain jurisdictions where the tax benefit of those losses is not expected to be realized. We review our income tax positions on a continuous basis and record unrecognized tax benefits for potential uncertain positions when we determine that an uncertain position meets the criteria of the Income Taxes Topic of the Codification. As events change and resolutions occur, adjustments are made to amounts previously provided, such as in the case of audit settlements with taxing authorities. In connection with the Spin-Off, we and the former Parent entered into a Tax Matters Agreement which, among other matters, addresses the allocation of certain tax adjustments that might arise upon examination of the 2013, 2014 and the pre-Spin-Off portion of the 2015 federal income tax returns of the former Parent. Of these returns, the 2014 and pre-Spin-Off portion of the 2015 federal income tax returns are currently under audit, and we believe any contingencies have been adequately provided for. We have various non-U.S. income tax returns under examination. The most significant of these is the examination in Germany for the 2010 through 2014 tax years. We expect this examination will conclude in 2021. We believe that any uncertain tax positions related to these examinations have been appropriately reflected as unrecognized tax benefits. As discussed in Note 3 , the Sale Agreement with the Buyer of the Company’s Disposal Group includes certain indemnification obligations which we believe are customary for transactions of this nature, including for certain tax obligations, to the extent such obligations relate to fiscal periods prior to the closing date and exceed amounts which are provided for in the balance sheet of the Disposal Group at closing. |
FAIR VALUE
FAIR VALUE | 3 Months Ended |
Apr. 03, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In the absence of active markets for the identical assets or liabilities, such measurements involve developing assumptions based on market observable data and, in the absence of such data, internal information consistent with what market participants would use in a hypothetical transaction that occurs at the measurement date. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. Preference is given to observable inputs. 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. There were no changes during the periods presented to the valuation techniques we use to measure asset and liability fair values on a recurring basis. There were no transfers between the three levels of the fair value hierarchy during the periods presented. The following section describes the valuation methodologies we use to measure different financial instruments at fair value on a recurring basis. Derivative Financial Instruments Our derivative financial assets and liabilities include FX forward contracts and FX embedded derivatives, valued using valuation models based on observable market inputs such as forward rates, interest rates, our own credit risk and the credit risk of our counterparties, which comprise investment-grade financial institutions. Based on these inputs, the derivative assets and liabilities are classified within Level 2 of the valuation hierarchy. We have not made any adjustments to the inputs obtained from the independent sources. Based on our continued ability to enter into forward contracts, we consider the markets for our fair value instruments active. We primarily use the income approach, which uses valuation techniques to convert future amounts to a single present amount. As of April 3, 2021 and December 31, 2020, the gross fair values of our derivative financial assets and liabilities, in aggregate, were $0.0 and $0.2 (gross assets) and $0.0 and $0.0 (gross liabilities), respectively. As of April 3, 2021, there had been no significant impact to the fair value of our derivative liabilities due to our own credit risk as the related instruments are collateralized under our senior credit facilities. Similarly, there had been no significant impact to the fair value of our derivative assets based on our evaluation of our counterparties’ credit risks. Equity Security Investment We hold an investment in an equity security which is reflected at its net asset value in "Other assets" in our condensed consolidated balance sheets as of April 3, 2021 and December 31, 2020 and the change in our investment, based on the equity security's most recently determined net asset value, is reflected in "Other income (expense), net" in our condensed consolidated statements of operations. The net asset value of our investment, utilizing a practical expedient under relevant accounting guidance, is based on our ownership percentage of approximately 19.7% and 18.9% at April 3, 2021 and December 31, 2020, respectively, applied to the equity security’s most recently determined net asset value. During the three months ended April 3, 2021, we recorded a gain of $5.4 to “Other income (expense), net” in our accompanying condensed consolidated statements of operations to reflect an increase in the estimated fair value of the equity security (there was no change in estimated fair value during the three months ended March 28, 2020). As of April 3, 2021 and December 31, 2020, the equity security had an estimated fair value of $32.3 and $26.9, respectively. We are restricted from transferring this investment without approval of the manager of the investee. The COVID-19 pandemic has had an adverse impact on global economic conditions. A prolonged adverse impact of the COVID-19 pandemic could result in a decline in the equity security’s estimated fair value and, thus, a resulting charge to earnings in a future period. Mezzanine Equity To the extent the noncontrolling interests' put option price is correlated with the estimated fair value of the subsidiary, we use the market method to estimate the fair values of noncontrolling interest put options reported in “ Mezzanine equity ” using unobservable inputs (Level 3) on a recurring basis. Changes to the noncontrolling interest put option value is reflected as adjustments to “ Mezzanine equity ” and “Paid-In Capital.” Refer to Note 13 for further discussion. Goodwill, Indefinite-Lived Intangible and Other Long-Lived Assets Certain of our non-financial assets are subject to impairment analysis, including long-lived assets, indefinite-lived intangible assets and goodwill. We review the carrying amounts of such assets whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable or at least annually for indefinite-lived intangible assets and goodwill. Any resulting impairment would require that the asset be recorded at its fair value. During the three months ended March 28, 2020, the Company recorded a pre-tax loss of $8.5 to reduce the carrying value of the net assets of its Disposal Group, including relevant foreign currency translation adjustment balances, to the net proceeds expected to be realized upon finalization of the purchase price with the Buyer (see Note 3 for further details regarding the Sale Agreement). The fair value of the Company’s Disposal Group reflected terms of the Sale Agreement with the Buyer as noted above and, as such, was valued using unobservable inputs (Level 3). At April 3, 2021, no other significant non-financial assets or liabilities of the Company were required to be measured at fair value on a recurring or non-recurring basis. See Note 3 for further information regarding the loss on Disposal Group recognized during the three months ended March 28, 2020, and Note 8 for further information regarding goodwill and indefinite-lived intangible assets, and the Company’s consideration of the effects of the COVID-19 pandemic on its evaluation of the carrying values of such long-lived assets as of April 3, 2021. Acquisitions For the POSI-LOCK acquisition, closed during the third quarter of 2020, the purchase price of $10.0 has been allocated to the assets acquired and liabilities assumed based on expert valuations and management’s estimates of their fair values as of the acquisition date. The excess of the purchase price over the aggregate fair values was recorded as "Goodwill" in the accompanying condensed consolidated balance sheets as of April 3, 2021 and December 31, 2020. For the UTG Mixing Group acquisition, closed during the first quarter of 2021, the purchase price of $38.0, net of cash acquired of $2.9, has been allocated to the assets acquired and liabilities assumed based on management’s preliminary estimates of their fair values as of the acquisition date, with a primary exception that intangible assets and property, plant and equipment acquired have not been allocated a preliminary estimate of fair value as of April 3, 2021 as the related valuation analyses remain in progress, as discussed in Note 3 . The excess of the purchase price over the aggregate fair values was recorded as "Goodwill" in the accompanying condensed consolidated balance sheet as of April 3, 2021. The estimates of fair values recognized as of April 3, 2021 are preliminary management estimates and are subject to change when such valuations and estimates are finalized. Indebtedness and Other The estimated fair values of other financial liabilities (excluding finance leases and deferred financing fees) not measured at fair value on a recurring basis as of April 3, 2021 and December 31, 2020 were as follows: April 3, 2021 December 31, 2020 Carrying Amount Fair Value Carrying Amount Fair Value Term loan $ 100.0 $ 100.0 $ 100.0 $ 100.0 5.875% senior notes (1) 300.0 311.6 300.0 313.5 Other indebtedness 12.0 12.0 12.5 12.5 (1) Carrying amount reflected herein excludes related deferred financing fees. The following methods and assumptions were used in estimating the fair value of these financial instruments: • The fair values of the senior notes were determined using Level 2 inputs within the fair value hierarchy and were based on quoted market prices for the same or similar instruments or on current rates offered to us for debt with similar maturities, subordination and credit default expectations. • The fair value of amounts outstanding under our term loan approximated carrying value due primarily to the variable-rate nature and credit spread of this instrument, when compared to other similar instruments. • The fair values of other indebtedness approximated carrying value due primarily to the short-term nature of these instruments. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 3 Months Ended |
Apr. 03, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENTOn April 28, 2021, the Company signed a definitive agreement to acquire mixing solutions provider Philadelphia Mixing Solutions, Ltd. from Thunder Basin Corporation, an affiliate of Wind River Holdings, L.P. The all-cash transaction valued at $65.0 is expected to close during the second quarter of 2021 and is expected to be paid for with cash on hand. As of the date of issuance, we have not completed the initial accounting for this business combination. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Apr. 03, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | We prepared the condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim reporting. As permitted under those rules and regulations, certain footnotes or other financial information normally required by accounting principles generally accepted in the United States (“GAAP”) can be condensed or omitted. The financial statements represent our accounts after the elimination of intercompany transactions and, in our opinion, include the adjustments (consisting only of normal and recurring items) necessary for their fair presentation. We experienced the adverse impacts of the novel coronavirus pandemic (“COVID-19” or the “COVID-19 pandemic”) beginning in the first quarter of 2020 and these adverse impacts are expected to continue in future quarters of 2021, and possibly longer. Despite the adverse impacts, there are no indications that the COVID-19 pandemic has resulted in a material decline in the carrying value of any assets, or a material change in the estimate of any contingent amounts, recorded in our condensed consolidated balance sheet as of April 3, 2021. However, there is uncertainty as to the duration and overall impact of the COVID-19 pandemic, which could result in an adverse material change in a future period to the estimates we have made related to the valuation of assets and contingent amounts, which could result in the impairment of certain assets or the recognition of costs due to increases in contingent amounts. Preparing financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from these estimates. The unaudited information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements contained in our 2020 Annual Report on Form 10-K. Interim results are not necessarily indicative of full year results and the condensed consolidated financial statements may not be indicative of the Company’s future performance. We establish actual interim closing dates using a fiscal calendar, which requires our businesses to close their books on the Saturday closest to the end of the first calendar quarter, with the second and third quarters being 91 days in length. Our fourth quarter ends on December 31. The interim closing dates for the first, second and third quarters of 2021 are April 3, July 3, and October 2, compared to the respective March 28, June 27, and September 26, 2020 dates. We had five more days in the first quarter of 2021 and will have six fewer days in the fourth quarter of 2021 than in the respective 2020 periods. |
New Accounting Pronouncements | The following is a summary of new accounting pronouncements that apply or may apply to our business. In December 2019, the Financial Accounting Standards Board (the "FASB") issued an amendment to simplify the accounting for income taxes by, among other matters, eliminating certain existing exceptions related to the general approach in Accounting Standards Codification ("ASC") 740 relating to franchise taxes, reducing complexity in the interim-period accounting for year-to-date loss limitations and changes in tax laws, and clarifying the accounting for the step-up in the tax basis of goodwill. The transition requirements are primarily prospective and the effective date is for interim and annual reporting periods beginning after December 15, 2020. The adoption of this amendment by the Company on January 1, 2021 did not have a significant impact on our condensed consolidated financial statements. |
BUSINESS ACQUISITIONS, DISPOS_2
BUSINESS ACQUISITIONS, DISPOSALS AND DISCONTINUED OPERATIONS (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | A summary of the purchase price paid for UTG Mixing Group as of January 18, 2021: Assets acquired: Current assets, including cash and equivalents of $2.9 $ 10.3 Property, plant and equipment 1.9 Goodwill 33.4 Other assets 1.7 Total assets acquired 47.3 Liabilities assumed: Current liabilities assumed (5.1) Long-term liabilities assumed (1.3) Total liabilities assumed (6.4) Net assets acquired $ 40.9 |
Income (Loss) from Discontinued Operations | Losses from discontinued operations for the three months ended April 3, 2021 and March 28, 2020 were as follows: Three months ended April 3, 2021 March 28, 2020 Revenues $ — $ 110.7 Cost of products sold (1) — 75.3 Gross profit — 35.4 Selling, general and administrative (1) — 30.7 Loss on Disposal Group (2) 0.4 8.5 Restructuring and other related charges — 0.3 Operating loss (0.4) (4.1) Other income (expense), net — (0.3) Interest expense, net (3) — (1.6) Loss from discontinued operations before income taxes (0.4) (6.0) Income tax benefit (4) 0.1 0.9 Loss from discontinued operations, net of tax (0.3) (5.1) Less: Loss attributable to noncontrolling interests — (0.1) Loss from discontinued operations, net of tax and noncontrolling interests $ (0.3) $ (5.0) (1) During the three months ended March 28, 2020, there was no depreciation of property, plant and equipment or amortization of intangible assets, related to our discontinued operations, as the assets of the Disposal Group were classified as held-for-sale for the period. (2) See previous paragraphs for further discussion regarding the loss on Disposal Group recognized during the three months ended March 28, 2020. (3) In addition to any business-specific interest expense and income, the interest expense, net, of discontinued operations reflects an allocation of interest expense, including the amortization of deferred financing fees, related to the Company’s senior notes, senior credit facilities and former trade receivables financing arrangement. Interest expense related to such debt instruments and allocated to discontinued operations was $1.6 for the three months ended March 28, 2020. The allocation of the Company’s interest expense of these debt instruments was determined based on the proportional amount of average net assets of the discontinued operations to the Company’s average net assets during each period, with the Company’s average net assets determined excluding the average outstanding borrowings under such debt instruments during each period. (4) During the three months ended April 3, 2021, we recorded an income tax benefit of $0.1 on $0.4 of pre-tax loss from discontinued operations, resulting in an effective tax rate of 25.0%. This compares to an income tax benefit for the three months ended March 28, 2020 of $0.9 on $6.0 of pre-tax loss from discontinued operations, resulting in an effective tax rate of 15.0%. The effective tax rate for the first quarter of 2020 reflects the effect that the majority of the pre-tax loss on Disposal Group is not deductible in the various jurisdictions where the sale of the Disposal Group was to be recognized. As such, only $1.2 of tax benefit was recognized on the $8.5 pre-tax loss on Disposal Group. The following table summarizes the significant non-cash operating items and capital expenditures reflected in cash flows of discontinued operations for the three months ended April 3, 2021 and March 28, 2020: Three months ended April 3, 2021 March 28, 2020 Loss on Disposal Group (1) $ 0.4 $ 8.5 Capital expenditures — (5.5) (1) See previous paragraphs for further discussion regarding the loss on Disposal Group recognized during the three months ended March 28, 2020. |
INFORMATION ON REPORTABLE SEG_2
INFORMATION ON REPORTABLE SEGMENTS, CORPORATE EXPENSE AND OTHER (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Segment Reporting [Abstract] | |
Schedule of financial data for reportable segments | Financial data for our reportable segments for the three months ended April 3, 2021 and March 28, 2020 were as follows: Three months ended April 3, 2021 March 28, 2020 Revenues: Nutrition and Health $ 171.6 $ 137.8 Industrial 192.2 151.7 Total revenues $ 363.8 $ 289.5 Income: Nutrition and Health $ 28.6 $ 19.4 Industrial 21.4 9.4 Total income for reportable segments 50.0 28.8 Corporate expense (1) 14.7 15.5 Pension and postretirement service costs 0.2 0.2 Asset impairment charges (2) — 1.9 Restructuring and other related charges 9.2 2.6 Consolidated operating income $ 25.9 $ 8.6 (1) Includes $0.0 and $2.4 for the three months ended April 3, 2021 and March 28, 2020, respectively, related to costs for certain centralized functions/services provided and/or administered by SPX FLOW that were previously charged to business units of which the related financial results of operations have been reclassified to discontinued operations. These centralized functions/services included, but were not limited to, information technology, shared services for accounting, payroll services, supply chain, and manufacturing and process improvement operations/services. These costs generally represent the costs of employees who provided such centralized functions/services to the business units reclassified as discontinued operations but who remained employees of SPX FLOW upon the disposition of the discontinued operations. |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue by reportable segments | The following table provides revenues recognized over time by reportable segment for the three months ended April 3, 2021 and March 28, 2020: Three months ended April 3, 2021 March 28, 2020 Revenues recognized over time: Nutrition and Health $ 71.2 $ 45.0 Industrial 11.5 6.0 Total revenues recognized over time $ 82.7 $ 51.0 Three months ended April 3, 2021 Three months ended March 28, 2020 Original Equipment Aftermarket Total Revenues Original Equipment Aftermarket Total Revenues Nutrition and Health $ 107.0 $ 64.6 $ 171.6 $ 80.8 $ 57.0 $ 137.8 Industrial 128.9 63.3 192.2 94.9 56.8 151.7 Total revenues $ 235.9 $ 127.9 $ 363.8 $ 175.7 $ 113.8 $ 289.5 |
Contract assets and liabilities and changes in balances | Our contract accounts receivable, assets and liabilities, and changes in such balances, were as follows: April 3, 2021 December 31, 2020 Change (1) Contract accounts receivable (2) $ 232.8 $ 219.8 $ 13.0 Contract assets 27.4 24.4 3.0 Contract liabilities (125.2) (119.5) (5.7) Net contract balance $ 135.0 $ 124.7 $ 10.3 (1) The $10.3 increase in our net contract balance from December 31, 2020 to April 3, 2021 was primarily due to (i) an increase in volume of revenues recognized at a point in time, partially due to the reduced adverse effects of the COVID-19 pandemic on the business during the three months ended April 3, 2021, (ii) the timing of advance and milestone payments received on certain Nutrition and Health contracts recognized over time, and of performance obligations satisfied and the related revenue recognized on such contracts, and (iii) an increase in net contract balance related to the acquisition of the UTG Mixing Group during the first quarter of 2021. (2) Included in “Accounts receivable, net” in our condensed consolidated balance sheets. Amounts are presented before consideration of the allowance for uncollectible accounts. |
RESTRUCTURING AND OTHER RELAT_2
RESTRUCTURING AND OTHER RELATED CHARGES (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Restructuring and Related Activities [Abstract] | |
Schedule of special charges, net | Restructuring and other related charges for the three months ended April 3, 2021 and March 28, 2020 were as follows: Three months ended April 3, 2021 March 28, 2020 Nutrition and Health $ 2.7 $ 0.5 Industrial 4.0 1.8 Other 2.5 0.3 Total $ 9.2 $ 2.6 |
Schedule of the analysis of restructuring liabilities | The following is an analysis of our restructuring liabilities (included in “Accrued expenses” in our condensed consolidated balance sheets) for the three months ended April 3, 2021 and March 28, 2020: Three months ended April 3, 2021 March 28, 2020 Balance at beginning of year $ 7.3 $ 7.6 Restructuring and other related charges (1) 8.8 2.3 Balance assumed in business acquisition 0.2 — Utilization — cash (3.1) (2.3) Currency translation adjustment and other (0.1) (0.2) Balance at end of period $ 13.1 $ 7.4 (1) Amounts that impacted restructuring and other related charges but not the restructuring liabilities included $0.4 and $0.3 of other related charges during the three months ended April 3, 2021 and March 28, 2020, respectively. |
INVENTORIES, NET (Tables)
INVENTORIES, NET (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories at April 3, 2021 and December 31, 2020 comprised the following: April 3, 2021 December 31, 2020 Finished goods $ 87.6 $ 86.1 Work in process 41.3 39.1 Raw materials and purchased parts 89.9 81.9 Total FIFO cost 218.8 207.1 Excess of FIFO cost over LIFO inventory value (7.8) (7.8) Total inventories $ 211.0 $ 199.3 |
GOODWILL, OTHER INTANGIBLE AS_2
GOODWILL, OTHER INTANGIBLE ASSETS AND ASSET IMPAIRMENT CHARGES (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the carrying amount of goodwill, by reportable segment | The changes in the carrying amount of goodwill by reportable segment during the three months ended April 3, 2021 were as follows: December 31, 2020 Goodwill Resulting from Business Combination (1) Impairments Foreign Currency Translation and Other April 3, 2021 Nutrition and Health $ 270.2 $ — $ — $ (10.0) $ 260.2 Industrial (2) 299.5 33.4 — (6.0) 326.9 Total $ 569.7 $ 33.4 $ — $ (16.0) $ 587.1 (1) Reflects goodwill that arose from the UTG Mixing Group acquisition during the first quarter of 2021. See Note 3 for further discussion regarding the status of valuation analyses and our recognition of identifiable intangible assets as of April 3, 2021 in connection with the UTG Mixing Group's acquisition. The balance recognized as "Goodwill" in connection with this business combination is expected to decline when preliminary management estimates of the fair values of assets acquired and liabilities assumed, and related valuation analyses, are finalized. |
Schedule of finite-lived intangible assets | Identifiable intangible assets were as follows: April 3, 2021 December 31, 2020 Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value Intangible assets with determinable lives: Customer relationships $ 127.9 $ (107.9) $ 20.0 $ 131.1 $ (108.5) $ 22.6 Technology 63.2 (51.0) 12.2 65.8 (52.4) 13.4 Patents 5.4 (4.6) 0.8 5.5 (4.6) 0.9 Other 8.4 (8.4) — 8.7 (8.7) — 204.9 (171.9) 33.0 211.1 (174.2) 36.9 Trademarks with indefinite lives 168.7 — 168.7 169.1 — 169.1 Total $ 373.6 $ (171.9) $ 201.7 $ 380.2 $ (174.2) $ 206.0 |
Schedule of indefinite-lived intangible assets | Identifiable intangible assets were as follows: April 3, 2021 December 31, 2020 Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value Intangible assets with determinable lives: Customer relationships $ 127.9 $ (107.9) $ 20.0 $ 131.1 $ (108.5) $ 22.6 Technology 63.2 (51.0) 12.2 65.8 (52.4) 13.4 Patents 5.4 (4.6) 0.8 5.5 (4.6) 0.9 Other 8.4 (8.4) — 8.7 (8.7) — 204.9 (171.9) 33.0 211.1 (174.2) 36.9 Trademarks with indefinite lives 168.7 — 168.7 169.1 — 169.1 Total $ 373.6 $ (171.9) $ 201.7 $ 380.2 $ (174.2) $ 206.0 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of net periodic benefit expense (income) | Net periodic benefit expense for our foreign pension plans and our domestic pension and postretirement plans for the three months ended April 3, 2021 and March 28, 2020 included the following components: Foreign Pension Plans Domestic Pension and Postretirement Plans Total Statement of Operations Caption in Which Expense is Reported Three months ended April 3, 2021 March 28, 2020 April 3, 2021 March 28, 2020 April 3, 2021 March 28, 2020 Service cost $ 0.2 0.2 $ — $ — $ 0.2 $ 0.2 Selling, general and administrative Interest cost — 0.1 0.1 0.1 0.1 0.2 Other income (expense), net Total net periodic benefit expense $ 0.2 $ 0.3 $ 0.1 $ 0.1 $ 0.3 $ 0.4 |
INDEBTEDNESS (Tables)
INDEBTEDNESS (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of debt | Debt at April 3, 2021 and December 31, 2020 was comprised of the following: April 3, 2021 December 31, 2020 Term loan, due in June 2022 $ 100.0 $ 100.0 5.875% senior notes, due in August 2026 300.0 300.0 Other indebtedness (1) 12.5 13.0 Less: deferred financing fees (2) (2.9) (3.1) Total debt 409.6 409.9 Less: short-term debt 12.0 12.5 Less: current maturities of long-term debt 0.1 0.1 Total long-term debt $ 397.5 $ 397.3 (1) Primarily includes finance lease obligations of $0.5 and $0.5 and balances under a purchase card program of $11.9 and $12.5 as of April 3, 2021 and December 31, 2020, respectively. The purchase card program allows for payment beyond customary payment terms for goods and services acquired under the program. As this arrangement extends the payment of these purchases beyond their normal payment terms through third-party lending institutions, we have classified these amounts as short-term debt. (2) Deferred financing fees were comprised of fees related to the term loan and senior notes. |
EQUITY AND STOCK-BASED COMPEN_2
EQUITY AND STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Equity [Abstract] | |
Schedule of weighted average shares outstanding used in computation of basic and diluted income (loss) per share | The following table sets forth the number of weighted-average shares outstanding used in the computation of basic and diluted income (loss) per share: Three months ended April 3, 2021 March 28, 2020 Weighted-average shares outstanding, basic 41.999 42.570 Dilutive effect of share-based awards 0.070 — Weighted-average shares outstanding, dilutive (1) 42.069 42.570 (1) Unvested restricted stock shares/units not included in the computation of diluted income per share because required market thresholds for vesting (as discussed below) were not met, were 0.000 and 0.110 for the three months ended April 3, 2021 and March 28, 2020, respectively. Unvested restricted stock shares/units not included in the computation of diluted income per share because required internal performance thresholds for vesting (as discussed below) were not met, were 0.069 and 0.185 for the three months ended April 3, 2021 and March 28, 2020, respectively. Stock options outstanding excluded from the computation of diluted income per share because their exercise price was greater than the average market price of common shares were 0.342 for the three months ended March 28, 2020. No stock options outstanding were excluded from the computation of diluted income per share for the three months ended April 3, 2021. |
Schedule of compensation expense related to share-based programs recognized in selling, general and administrative expense | For the three months ended April 3, 2021 and March 28, 2020, we recognized compensation expense related to share-based programs in “Selling, general and administrative” expense in the accompanying condensed consolidated statements of operations as follows: Three months ended April 3, 2021 March 28, 2020 Stock-based compensation expense - continuing and discontinued operations $ 2.8 $ 4.0 Less: stock-based compensation expense recognized in discontinued operations — 0.8 Stock-based compensation expense recognized in continuing operations 2.8 3.2 Income tax benefit (0.4) (0.8) Stock-based compensation expense, net of income tax benefit $ 2.4 $ 2.4 |
Schedule of assumptions used to determine fair value of awards granted | The following assumptions were used in determining the fair value of the awards granted on the date indicated below: Annual Expected Stock Price Volatility Annual Expected Dividend Yield Risk-free Interest Rate Correlations Between Total Shareholder Return for SPX FLOW and Individual Companies in the Composite Group Minimum Average Maximum March 8, 2021: SPX FLOW 50.3 % — % 0.20 % 0.2214 0.5645 0.8241 Composite Group 43.8 % n/a 0.22 % |
Summary of restricted stock share and restricted stock unit activity | The following table summarizes the unvested restricted stock share and restricted stock unit activity for the three months ended April 3, 2021: Unvested Restricted Stock Shares and Restricted Stock Units Weighted-Average Grant-Date Fair Value Per Share Outstanding at December 31, 2020 0.931 $37.03 Granted 0.300 66.81 Vested (0.239) 40.90 Forfeited and other (0.072) 46.21 Outstanding at April 3, 2021 0.920 $45.00 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Fair Value Disclosures [Abstract] | |
Estimated fair values of other financial liabilities not measured at fair value on a recurring basis | The estimated fair values of other financial liabilities (excluding finance leases and deferred financing fees) not measured at fair value on a recurring basis as of April 3, 2021 and December 31, 2020 were as follows: April 3, 2021 December 31, 2020 Carrying Amount Fair Value Carrying Amount Fair Value Term loan $ 100.0 $ 100.0 $ 100.0 $ 100.0 5.875% senior notes (1) 300.0 311.6 300.0 313.5 Other indebtedness 12.0 12.0 12.5 12.5 (1) Carrying amount reflected herein excludes related deferred financing fees. |
BASIS OF PRESENTATION - Narrati
BASIS OF PRESENTATION - Narrative (Details) | 3 Months Ended |
Apr. 03, 2021segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of business segments (in segments) | 2 |
BUSINESS ACQUISITIONS, DISPOS_3
BUSINESS ACQUISITIONS, DISPOSALS AND DISCONTINUED OPERATIONS - Narrative (Details) - USD ($) $ in Millions | Jan. 18, 2021 | Aug. 01, 2020 | Mar. 30, 2020 | Nov. 30, 2020 | Apr. 03, 2021 | Dec. 31, 2020 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Nov. 30, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Payments to acquire businesses, net of cash acquired | $ 38 | $ 0 | ||||||||
Gain (loss) on disposal | $ (1.2) | $ (2) | $ (8.5) | |||||||
Accumulated other comprehensive loss | (265.9) | $ (226.4) | ||||||||
Transaction services agreement income | 1 | |||||||||
Disposed of by Sale | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Consideration | $ 475 | |||||||||
Disposed of by Sale | Sale Of Asia Pacific business | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Net proceeds from sale of business | $ 4.7 | |||||||||
Gain (loss) on disposal | (4.2) | |||||||||
Disposed of by Sale | Disposal group | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Net proceeds from sale of business | $ 406.2 | |||||||||
Held-for-sale | Disposal group | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Gain (loss) on disposal | (0.4) | |||||||||
Consideration | $ 6.3 | |||||||||
Cumulative foreign currency translation adjustment | $ 178.2 | |||||||||
Accumulated other comprehensive loss | $ 1.2 | |||||||||
POSI LOCK | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Purchase price | $ 10 | $ 10 | ||||||||
UTG Mixing Group | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Percentage of voting interests acquired | 98.00% | |||||||||
Payments to acquire businesses, net of cash acquired | $ 38 | |||||||||
Cash acquired from acquisition | $ 2.9 |
BUSINESS ACQUISITIONS, DISPOS_4
BUSINESS ACQUISITIONS, DISPOSALS AND DISCONTINUED OPERATIONS - Schedule of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 03, 2021 | Jan. 18, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 587.1 | $ 569.7 | |
UTG Mixing Group | |||
Business Acquisition [Line Items] | |||
Current assets, including cash and equivalents of $2.9 | $ 10.3 | ||
Cash acquired from acquisition | $ 2.9 | ||
Property, plant and equipment | 1.9 | ||
Goodwill | 33.4 | ||
Other assets | 1.7 | ||
Total assets acquired | 47.3 | ||
Current liabilities assumed | (5.1) | ||
Long-term liabilities assumed | (1.3) | ||
Total liabilities assumed | (6.4) | ||
Net assets acquired | $ 40.9 |
BUSINESS ACQUISITIONS, DISPOS_5
BUSINESS ACQUISITIONS, DISPOSALS AND DISCONTINUED OPERATIONS - Income (Loss) from Discontinued Operations (Details) - USD ($) | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Loss from discontinued operations, net of tax | $ (300,000) | $ (5,100,000) |
Loss from discontinued operations, net of tax and noncontrolling interests | $ (300,000) | (5,000,000) |
Depreciation and amortization | $ 0 | |
Effective income tax rate, from discontinued operations | 30.40% | (90.00%) |
Disposed of by Sale | Disposal group | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Revenues | $ 0 | $ 110,700,000 |
Cost of products sold | 0 | 75,300,000 |
Gross profit | 0 | 35,400,000 |
Selling, general and administrative | 0 | 30,700,000 |
Loss on disposal group | 400,000 | 8,500,000 |
Restructuring and other related charges | 0 | 300,000 |
Operating loss | (400,000) | (4,100,000) |
Other income (expense), net | 0 | (300,000) |
Interest expense, net | 0 | (1,600,000) |
Loss from discontinued operations before income taxes | (400,000) | (6,000,000) |
Income tax benefit (provision) | 100,000 | 900,000 |
Loss from discontinued operations, net of tax | (300,000) | (5,100,000) |
Less: Loss attributable to noncontrolling interests | 0 | (100,000) |
Loss from discontinued operations, net of tax and noncontrolling interests | $ (300,000) | $ (5,000,000) |
Effective income tax rate, from discontinued operations | 25.00% | 15.00% |
Tax effect of gain (loss) from disposal of discontinued operation | $ (1,200,000) | |
Senior Notes, Senior Credit Facilities, Former Trade Receivables | Disposed of by Sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Interest expense, net | $ (1,600,000) |
BUSINESS ACQUISITIONS, DISPOS_6
BUSINESS ACQUISITIONS, DISPOSALS AND DISCONTINUED OPERATIONS - Schedule of Significant Non-Cash Operating Items (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Capital expenditures | $ (9.3) | $ (4.7) |
Disposed of by Sale | Disposal group | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Loss on disposal group | 0.4 | 8.5 |
Disposed of by sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Capital expenditures | $ 0 | $ (5.5) |
INFORMATION ON REPORTABLE SEG_3
INFORMATION ON REPORTABLE SEGMENTS, CORPORATE EXPENSE AND OTHER - Narrative (Details) | Apr. 03, 2021country |
Segment Reporting [Abstract] | |
Number of countries in which entity operates (more than) (in countries) | 30 |
Number of countries in which entity sells its products and services (more than) (in countries) | 140 |
INFORMATION ON REPORTABLE SEG_4
INFORMATION ON REPORTABLE SEGMENTS, CORPORATE EXPENSE AND OTHER - Financial Data for Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | Sep. 28, 2019 | Sep. 28, 2019 | |
Revenues: | ||||
Total revenues | $ 363.8 | $ 289.5 | ||
Income: | ||||
Total income for reportable segments | 25.9 | 8.6 | ||
Asset impairment charges | 0 | 1.9 | ||
Restructuring and other related charges | 9.2 | 2.6 | ||
Industrial | ||||
Revenues: | ||||
Total revenues | 192.2 | 151.7 | ||
Reporting segments | ||||
Revenues: | ||||
Total revenues | 363.8 | 289.5 | ||
Income: | ||||
Total income for reportable segments | 50 | 28.8 | ||
Reporting segments | Food And Beverage | ||||
Revenues: | ||||
Total revenues | 171.6 | 137.8 | ||
Income: | ||||
Total income for reportable segments | 28.6 | 19.4 | ||
Reporting segments | Industrial | ||||
Revenues: | ||||
Total revenues | 192.2 | 151.7 | ||
Income: | ||||
Total income for reportable segments | 21.4 | 9.4 | ||
Restructuring and other related charges | 4 | 1.8 | ||
Other | ||||
Income: | ||||
Corporate expense | 14.7 | 15.5 | ||
Restructuring and other related charges | 2.5 | 0.3 | ||
Segment reconciling items | ||||
Income: | ||||
Pension and postretirement service costs | 0.2 | 0.2 | ||
Asset impairment charges | 0 | 1.9 | $ 1.9 | $ 1.9 |
Restructuring and other related charges | 9.2 | 2.6 | ||
Discontinued operations | Other | ||||
Income: | ||||
Corporate expense | $ 0 | $ 2.4 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS - Disaggregation of Revenue by Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 363.8 | $ 289.5 |
Original Equipment | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 235.9 | 175.7 |
Aftermarket | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 127.9 | 113.8 |
Transferred Over Time | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 82.7 | 51 |
Nutrition and Health | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 171.6 | 137.8 |
Nutrition and Health | Original Equipment | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 107 | 80.8 |
Nutrition and Health | Aftermarket | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 64.6 | 57 |
Nutrition and Health | Transferred Over Time | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 71.2 | 45 |
Industrial | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 192.2 | 151.7 |
Industrial | Original Equipment | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 128.9 | 94.9 |
Industrial | Aftermarket | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 63.3 | 56.8 |
Industrial | Transferred Over Time | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 11.5 | $ 6 |
REVENUE FROM CONTRACTS WITH C_4
REVENUE FROM CONTRACTS WITH CUSTOMERS - Contract Assets and Liabilities and Changes in Balances (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2021 | Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Contract accounts receivable | $ 232.8 | $ 219.8 |
Change in contract accounts receivable | 13 | |
Contract assets | 27.4 | 24.4 |
Change in contract assets | 3 | |
Contract liabilities | (125.2) | (119.5) |
Change in contract liabilities | (5.7) | |
Net contract balance | 135 | $ 124.7 |
Change in net contract balance | $ 10.3 |
REVENUE FROM CONTRACTS WITH C_5
REVENUE FROM CONTRACTS WITH CUSTOMERS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |||
Revenue recognized related to contract liabilities outstanding | $ 48.2 | $ 42.5 | |
Deferred costs, current | $ 0.4 | $ 0.4 |
REVENUE FROM CONTRACTS WITH C_6
REVENUE FROM CONTRACTS WITH CUSTOMERS - Remaining Performance Obligations (Details) - USD ($) $ in Millions | Apr. 03, 2021 | Mar. 28, 2020 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 564.7 | $ 517 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-04 | Next 12 months | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation, percentage | 93.00% | |
Expected timing of satisfaction, period | 12 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-04 | Next 24 months | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Expected timing of satisfaction, period | 24 months |
RESTRUCTURING AND OTHER RELAT_3
RESTRUCTURING AND OTHER RELATED CHARGES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | Dec. 31, 2022 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other related charges | $ 9.2 | $ 2.6 | |
Global cost productivity program | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other related charges | $ 9.2 | ||
Forecast | Global cost productivity program | |||
Restructuring Cost and Reserve [Line Items] | |||
Annualized SG&A cost savings | $ (25) |
RESTRUCTURING AND OTHER RELAT_4
RESTRUCTURING AND OTHER RELATED CHARGES - Schedule (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related charges | $ 9.2 | $ 2.6 |
Reporting segments | Nutrition and Health | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related charges | 2.7 | 0.5 |
Reporting segments | Industrial | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related charges | 4 | 1.8 |
Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related charges | $ 2.5 | $ 0.3 |
RESTRUCTURING AND OTHER RELAT_5
RESTRUCTURING AND OTHER RELATED CHARGES - Analysis of Restructuring Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Restructuring Liabilities | ||
Balance at beginning of year | $ 7.3 | $ 7.6 |
Restructuring and other related charges | 8.8 | 2.3 |
Balance assumed in business acquisition | 0.2 | 0 |
Utilization — cash | (3.1) | (2.3) |
Currency translation adjustment and other | (0.1) | (0.2) |
Balance at end of period | 13.1 | 7.4 |
Corporate | ||
Restructuring Liabilities | ||
Asset impairment and non-cash charges | $ 0.4 | $ 0.3 |
INVENTORIES, NET - Inventories
INVENTORIES, NET - Inventories (Details) - USD ($) $ in Millions | Apr. 03, 2021 | Dec. 31, 2020 |
Inventory, Net [Abstract] | ||
Finished goods | $ 87.6 | $ 86.1 |
Work in process | 41.3 | 39.1 |
Raw materials and purchased parts | 89.9 | 81.9 |
Total FIFO cost | 218.8 | 207.1 |
Excess of FIFO cost over LIFO inventory value | (7.8) | (7.8) |
Total inventories | $ 211 | $ 199.3 |
Domestic inventories valued using the last-in, first-out method, as a percentage of total inventory | 12.00% | 11.00% |
GOODWILL, OTHER INTANGIBLE AS_3
GOODWILL, OTHER INTANGIBLE ASSETS AND ASSET IMPAIRMENT CHARGES - Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2021 | Dec. 31, 2020 | |
Changes in the carrying amount of goodwill | ||
Beginning Balance | $ 569.7 | |
Goodwill resulting from business combinations | 33.4 | |
Impairments | 0 | |
Foreign Currency Translation and Other | (16) | |
Ending Balance | 587.1 | |
Nutrition and Health | ||
Changes in the carrying amount of goodwill | ||
Beginning Balance | 270.2 | |
Goodwill resulting from business combinations | 0 | |
Impairments | 0 | |
Foreign Currency Translation and Other | (10) | |
Ending Balance | 260.2 | |
Industrial | ||
Changes in the carrying amount of goodwill | ||
Beginning Balance | 299.5 | |
Goodwill resulting from business combinations | 33.4 | |
Impairments | 0 | |
Foreign Currency Translation and Other | (6) | |
Ending Balance | 326.9 | |
Accumulated impairment included in carrying amount of goodwill | $ 134.1 | $ 134.6 |
GOODWILL, OTHER INTANGIBLE AS_4
GOODWILL, OTHER INTANGIBLE ASSETS AND ASSET IMPAIRMENT CHARGES - Identifiable Intangible Assets (Details) - USD ($) $ in Millions | Apr. 03, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 204.9 | $ 211.1 |
Accumulated Amortization | (171.9) | (174.2) |
Net Carrying Value | 33 | 36.9 |
Total gross carrying value | 373.6 | 380.2 |
Total net carrying value | 201.7 | 206 |
Trademarks with indefinite lives | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Trademarks with indefinite lives | 168.7 | 169.1 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 127.9 | 131.1 |
Accumulated Amortization | (107.9) | (108.5) |
Net Carrying Value | 20 | 22.6 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 63.2 | 65.8 |
Accumulated Amortization | (51) | (52.4) |
Net Carrying Value | 12.2 | 13.4 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 5.4 | 5.5 |
Accumulated Amortization | (4.6) | (4.6) |
Net Carrying Value | 0.8 | 0.9 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 8.4 | 8.7 |
Accumulated Amortization | (8.4) | (8.7) |
Net Carrying Value | $ 0 | $ 0 |
GOODWILL, OTHER INTANGIBLE AS_5
GOODWILL, OTHER INTANGIBLE ASSETS AND ASSET IMPAIRMENT CHARGES - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Apr. 03, 2021 | Mar. 28, 2020 | Sep. 28, 2019 | Sep. 28, 2019 | Dec. 31, 2020 | |
Goodwill [Line Items] | |||||
Net carrying value of intangible assets with determinable lives | $ 33,000,000 | $ 36,900,000 | |||
Impairment charges recorded | 0 | $ 0 | |||
Asset impairment charges | 0 | 1,900,000 | |||
Tangible asset impairment charges | 0 | ||||
Customer relationships | |||||
Goodwill [Line Items] | |||||
Net carrying value of intangible assets with determinable lives | 20,000,000 | 22,600,000 | |||
Patents | |||||
Goodwill [Line Items] | |||||
Net carrying value of intangible assets with determinable lives | 800,000 | 900,000 | |||
Technology | |||||
Goodwill [Line Items] | |||||
Net carrying value of intangible assets with determinable lives | 12,200,000 | 13,400,000 | |||
Segment reconciling items | |||||
Goodwill [Line Items] | |||||
Asset impairment charges | 0 | 1,900,000 | $ 1,900,000 | $ 1,900,000 | |
Trademarks with indefinite lives | |||||
Goodwill [Line Items] | |||||
Trademarks with indefinite lives | 168,700,000 | $ 169,100,000 | |||
Nutrition and Health | |||||
Goodwill [Line Items] | |||||
Net carrying value of intangible assets with determinable lives | 18,800,000 | ||||
Nutrition and Health | Trademarks with indefinite lives | |||||
Goodwill [Line Items] | |||||
Trademarks with indefinite lives | 100,900,000 | ||||
Industrial | |||||
Goodwill [Line Items] | |||||
Net carrying value of intangible assets with determinable lives | 14,200,000 | ||||
Tangible asset impairment charges | $ 1,900,000 | ||||
Industrial | Trademarks with indefinite lives | |||||
Goodwill [Line Items] | |||||
Trademarks with indefinite lives | $ 67,800,000 |
EMPLOYEE BENEFIT PLANS - Compon
EMPLOYEE BENEFIT PLANS - Components of Net Periodic Pension and Postretirement Benefit Expense (Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Employee Benefit Plans | ||
Service cost | $ 0.2 | $ 0.2 |
Interest cost | 0.1 | 0.2 |
Total net periodic benefit expense | 0.3 | 0.4 |
Foreign Pension Plans | Pension plan | ||
Employee Benefit Plans | ||
Service cost | 0.2 | 0.2 |
Interest cost | 0 | 0.1 |
Total net periodic benefit expense | 0.2 | 0.3 |
Domestic Pension and Postretirement Plans | Other Postretirement Benefits Plan | ||
Employee Benefit Plans | ||
Service cost | 0 | 0 |
Interest cost | 0.1 | 0.1 |
Total net periodic benefit expense | $ 0.1 | $ 0.1 |
INDEBTEDNESS - Schedule of Debt
INDEBTEDNESS - Schedule of Debt (Details) - USD ($) $ in Millions | Apr. 03, 2021 | Dec. 31, 2020 |
Short-term Debt [Line Items] | ||
Other indebtedness | $ 12.5 | $ 13 |
Less: short-term debt | 12 | 12.5 |
Debt Instrument [Line Items] | ||
Less: deferred financing fees | (2.9) | (3.1) |
Long-term debt and capital lease obligations | 409.6 | 409.9 |
Less: current maturities of long-term debt | 0.1 | 0.1 |
Total long-term debt | 397.5 | 397.3 |
Finance lease obligation | 0.5 | 0.5 |
Purchase card program | ||
Short-term Debt [Line Items] | ||
Other indebtedness | 11.9 | 12.5 |
Term loan | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 100 | 100 |
Senior notes | 5.875% senior notes, due in August 2026 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 5.875% | |
Long-term debt | $ 300 | $ 300 |
INDEBTEDNESS - Narrative (Detai
INDEBTEDNESS - Narrative (Details) - USD ($) $ in Millions | Apr. 03, 2021 | Dec. 31, 2020 |
Line of Credit Facility [Line Items] | ||
Outstanding letters of credit | $ 7 | |
Secured debt | Letter of credit | ||
Line of Credit Facility [Line Items] | ||
Outstanding letters of credit | 5.3 | |
Secured debt | Foreign line of credit | ||
Line of Credit Facility [Line Items] | ||
Available borrowing capacity | 102.4 | |
Outstanding letters of credit | $ 47.6 | |
Senior credit facility | Secured debt | ||
Line of Credit Facility [Line Items] | ||
Weighted average interest rate of outstanding borrowings | 1.50% | 1.50% |
Available borrowing capacity | $ 494.7 | |
Guarantor obligations | $ 4.9 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) | 3 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | Dec. 31, 2020 | |
Derivative [Line Items] | |||
Unrealized gains (losses), net of tax, recorded in AOCI | $ 0 | $ 0 | |
FX forward contracts | |||
Derivative [Line Items] | |||
Aggregate notional amount | $ 34,500,000 | 40,700,000 | |
Period contracts are scheduled to mature | 1 year | ||
FX embedded derivatives | |||
Derivative [Line Items] | |||
Aggregate notional amount | $ 200,000 | 5,500,000 | |
Forward contracts | |||
Derivative [Line Items] | |||
Fair value of derivative contract, gross assets | 0 | 200,000 | |
Fair value of derivative contract, gross liabilities | 0 | $ 0 | |
Forward contracts | Other income (expense), net | |||
Derivative [Line Items] | |||
Net gains (losses) recorded in other income (expense), net | $ 100,000 | $ (800,000) | |
Minimum | FX embedded derivatives | |||
Derivative [Line Items] | |||
Period contracts are scheduled to mature | 1 year |
EQUITY AND STOCK-BASED COMPEN_3
EQUITY AND STOCK-BASED COMPENSATION - Income Per Share (Details) - shares | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | ||
Weighted-average shares outstanding, basic (in shares) | 41,999,000 | 42,570,000 |
Dilutive effect of share-based awards (in shares) | 70,000 | 0 |
Weighted-average shares outstanding, dilutive (in shares) | 42,069,000 | 42,570,000 |
Restricted stock shares/Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Securities not included in computation of diluted income per share due to market threshold requirement (in shares) | 0 | 110,000 |
Securities not included in computation of diluted income per share due to internal performance thresholds (in shares) | 69,000 | 185,000 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Securities not included in computation of diluted income per share (in shares) | 0 | 342,000 |
EQUITY AND STOCK-BASED COMPEN_4
EQUITY AND STOCK-BASED COMPENSATION - Stock-Based Compensation (Details) - shares shares in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award's requisite service period | 3 years | |
Stock Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available for future grants (up to) (in shares) | 1,674 | |
Restricted stock shares and restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Award's requisite service period | 10 years | |
Restricted stock shares and restricted stock units | Early Retirement Provision | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Age for eligible award vesting | 60 years | |
Restricted stock shares and restricted stock units | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of shares equivalent to minimum vesting | 50.00% | |
Restricted stock shares and restricted stock units | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of shares equivalent to minimum vesting | 200.00% | |
Restricted stock shares and restricted stock units | Non-employee directors | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 1 year | |
Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Restricted stock units | Non-officer employees | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years |
EQUITY AND STOCK-BASED COMPEN_5
EQUITY AND STOCK-BASED COMPENSATION - Compensation Expense Related to Share-based Programs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Illiquidity discount | 14.60% | |
Selling, general and administrative expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense - continuing and discontinued operations | $ 2.8 | $ 4 |
Income tax benefit | (0.4) | (0.8) |
Stock-based compensation expense, net of income tax benefit | 2.4 | 2.4 |
Discontinued operations | Selling, general and administrative expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense - continuing and discontinued operations | 0 | 0.8 |
Continuing operations | Selling, general and administrative expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense - continuing and discontinued operations | $ 2.8 | $ 3.2 |
EQUITY AND STOCK-BASED COMPEN_6
EQUITY AND STOCK-BASED COMPENSATION - Assumptions used to determine fair value of grants awarded (Details) - Restricted stock shares/Restricted stock units | Mar. 08, 2021$ / shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Annual Expected Dividend Yield | 0.00% |
SPX FLOW | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Annual Expected Stock Price Volatility | 50.30% |
Risk-free Interest Rate | 0.20% |
Composite Group | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Annual Expected Stock Price Volatility | 43.80% |
Risk-free Interest Rate | 0.22% |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price (in dollars per share) | $ 0.2214 |
Weighted Average | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price (in dollars per share) | 0.5645 |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price (in dollars per share) | $ 0.8241 |
EQUITY AND STOCK-BASED COMPEN_7
EQUITY AND STOCK-BASED COMPENSATION - Restricted Stock Unit Awards (Details) - Restricted stock shares and restricted stock units $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended |
Apr. 03, 2021USD ($)$ / sharesshares | |
Unvested Restricted Stock Shares and Restricted Stock Units | |
Outstanding at beginning of year (in shares) | shares | 931 |
Granted (in shares) | shares | 300 |
Vested (in shares) | shares | (239) |
Forfeited and other (in shares) | shares | (72) |
Outstanding at the end of period (in shares) | shares | 920 |
Weighted-Average Grant-Date Fair Value Per Share | |
Outstanding at beginning of year (in dollars per share) | $ / shares | $ 37.03 |
Granted (in dollars per share) | $ / shares | 66.81 |
Vested (in dollars per share) | $ / shares | 40.90 |
Forfeited and other (in dollars per share) | $ / shares | 46.21 |
Outstanding at the end of period (in dollars per share) | $ / shares | $ 45 |
Unrecognized compensation cost | $ | $ 31.8 |
Weighted-average period cost expected to be recognized | 2 years 3 months 18 days |
EQUITY AND STOCK-BASED COMPEN_8
EQUITY AND STOCK-BASED COMPENSATION - Stock Options (Details) - Stock options - SPX FLOW stock options - USD ($) $ / shares in Units, shares in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options outstanding (in shares) | 133 | 301 |
Exercise of stock options (in shares) | 168 | |
Weighted-average exercise price per share (in dollars per share) | $ 61.29 | |
Weighted-average grant-date fair value (in dollars per share) | $ 19.33 | |
Unrecognized compensation cost | $ 0 |
EQUITY AND STOCK-BASED COMPEN_9
EQUITY AND STOCK-BASED COMPENSATION - Accumulated Other Comprehensive Loss (Details) - USD ($) | Apr. 03, 2021 | Dec. 31, 2020 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Unrealized gains (losses), net of tax, recorded in AOCI | $ 0 | $ 0 |
EQUITY AND STOCK-BASED COMPE_10
EQUITY AND STOCK-BASED COMPENSATION - Common Stock in Treasury (Details) - USD ($) $ / shares in Units, shares in Thousands | Mar. 10, 2021 | Apr. 03, 2021 | Mar. 28, 2020 |
Equity, Class of Treasury Stock [Line Items] | |||
Purchases of common stock | $ 9,900,000 | $ 0 | |
Dividends declared per share (in dollars per share) | $ 0.09 | $ 0.09 | |
Common Stock in Treasury | |||
Equity, Class of Treasury Stock [Line Items] | |||
Common stock surrendered as a means of funding income tax withholding requirements | $ 6,400,000 | $ 6,400,000 | |
Common Stock | |||
Equity, Class of Treasury Stock [Line Items] | |||
Common stock repurchases (in shares) | 158 | ||
Stock repurchase program, authorized amount | $ 150,000,000 | ||
Stock repurchase program, remaining authorized repurchase amount | 120,200,000 | ||
Dividends payable | $ 3,800,000 |
LITIGATION, CONTINGENT LIABIL_2
LITIGATION, CONTINGENT LIABILITIES AND OTHER MATTERS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Apr. 03, 2021 | |
Other Commitments [Line Items] | ||
Payments to noncontrolling interests | $ 15 | |
Exercise value of put option outstanding | 3.4 | $ 3.3 |
Noncontrolling Interests | ||
Other Commitments [Line Items] | ||
Decrease from redemptions or purchase of interests | 7.7 | |
Paid-In Capital | ||
Other Commitments [Line Items] | ||
Reclassifications of temporary to permanent equity | $ 15 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Valuation Allowance [Line Items] | ||
Unrecognized tax benefits | $ 16,000,000 | |
Unrecognized tax benefits, net | 15,100,000 | |
Unrecognized tax benefits that would impact effective tax rate | 10,000,000 | |
Unrecognized tax benefits, interest on income taxes accrued | 900,000 | |
Unrecognized tax benefits, interest on income taxes accrued, net | 800,000 | |
Unrecognized tax benefits, accrual for penalties | 0 | |
Income tax benefit | 8,300,000 | $ (900,000) |
Pre-tax income (loss) | $ 27,300,000 | $ (1,000,000) |
Effective income tax rate | 30.40% | (90.00%) |
Impact of charge resulting from losses or benefits not expected to be realized | $ 1,700,000 | $ 600,000 |
Tax benefit from subsidiary adjustments | $ 1,200,000 | |
Minimum | ||
Valuation Allowance [Line Items] | ||
Reasonably possible decrease in unrecognized tax benefits | 500,000 | |
Maximum | ||
Valuation Allowance [Line Items] | ||
Reasonably possible decrease in unrecognized tax benefits | $ 1,000,000 |
FAIR VALUE - Derivative Financi
FAIR VALUE - Derivative Financial Instruments (Details) $ in Millions | 3 Months Ended | |
Apr. 03, 2021USD ($)transfer | Dec. 31, 2020USD ($) | |
Derivative [Line Items] | ||
Transfers between fair value hierarchy | transfer | 0 | |
Forward contracts | ||
Derivative [Line Items] | ||
Fair value of derivative contract, gross assets | $ 0 | $ 0.2 |
Fair value of derivative contract, gross liabilities | $ 0 | $ 0 |
FAIR VALUE - Equity Security In
FAIR VALUE - Equity Security Investment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2021 | Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | ||
Equity securities, ownership percentage | 19.70% | 18.90% |
Gain due to increase in estimated fair value of equity security | $ 5.4 | |
Asset value | $ 32.3 | $ 26.9 |
FAIR VALUE - Goodwill, Indefini
FAIR VALUE - Goodwill, Indefinite-Lived Intangible and Other Long-Lived Assets (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Disposed of by Sale | Disposal group | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Loss on disposal group | $ 0.4 | $ 8.5 |
FAIR VALUE - Acquisitions (Deta
FAIR VALUE - Acquisitions (Details) - USD ($) $ in Millions | Aug. 01, 2020 | Sep. 26, 2020 |
POSI LOCK | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other assets | $ 10 | $ 10 |
FAIR VALUE - Indebtedness and O
FAIR VALUE - Indebtedness and Other (Details) - USD ($) $ in Millions | Apr. 03, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other indebtedness | $ 12 | $ 12.5 |
Senior notes | 5.875% senior notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Stated interest rate | 5.875% | |
Fair value, measurements, nonrecurring | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Term loans | $ 100 | 100 |
Other indebtedness | 12 | 12.5 |
Fair value, measurements, nonrecurring | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Term loans | 100 | 100 |
Other indebtedness | 12 | 12.5 |
Fair value, measurements, nonrecurring | Level 2 | Carrying Amount | Senior notes | 5.875% senior notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior notes | 300 | 300 |
Fair value, measurements, nonrecurring | Level 2 | Fair Value | Senior notes | 5.875% senior notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior notes | $ 311.6 | $ 313.5 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) $ in Millions | Apr. 28, 2021USD ($) |
Subsequent event | Philadelphia Mixing Solutions, Ltd | |
Subsequent Event [Line Items] | |
Purchase price | $ 65 |