Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 22, 2019 | Jun. 29, 2018 | |
Document and entity information | |||
Entity Registrant Name | Welbilt, Inc. | ||
Entity Central Index Key | 1,650,962 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well Known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3.1 | ||
Entity Common Stock, Shares Outstanding | 140,664,555 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | ||||||||||||
Net sales | $ 406.1 | $ 412.9 | $ 420.7 | $ 350.4 | $ 365.9 | $ 380.4 | $ 371.1 | $ 328 | $ 1,590.1 | $ 1,445.4 | $ 1,456.1 | |
Cost of sales | 1,020.9 | 908.5 | 922.3 | |||||||||
Gross profit | 140.6 | 153.1 | 149.3 | 126.2 | 132.8 | 143.9 | 137.2 | 123 | 569.2 | 536.9 | 533.8 | |
Selling, general and administrative expenses | 309.7 | 276.7 | 286.1 | |||||||||
Amortization expense | 37 | 31.2 | 31.2 | |||||||||
Separation expense | 0.1 | 1.6 | 6.5 | |||||||||
Restructuring expense | 6 | 10.8 | 2.5 | |||||||||
(Gain) loss from impairment or disposal of assets — net | (0.4) | (4) | 3.3 | |||||||||
Earnings from operations | 216.8 | 220.6 | 204.2 | |||||||||
Interest expense | 89 | 86.9 | 85.2 | |||||||||
Interest expense on notes with MTW — net | 0 | 0 | 0.1 | |||||||||
Loss on modification or extinguishment of debt | 9 | 1.7 | 2.7 | |||||||||
Other expense — net | 29.8 | 10.6 | 14 | |||||||||
Earnings before income taxes | 89 | 121.4 | 102.2 | |||||||||
Income taxes | 5.2 | 0.4 | $ 5.6 | 10.8 | (11.5) | 30.7 | ||||||
Net earnings | $ 27 | $ 26.8 | $ 12 | $ 12.4 | $ 66.9 | $ 30.7 | $ 28.4 | $ 6.9 | $ 24.4 | $ 78.2 | $ 132.9 | $ 71.5 |
Per share data | ||||||||||||
Earnings per share — Basic (in dollars per share) | $ 0.19 | $ 0.19 | $ 0.09 | $ 0.09 | $ 0.48 | $ 0.22 | $ 0.20 | $ 0.05 | $ 0.17 | $ 0.56 | $ 0.96 | $ 0.52 |
Earnings per share — Diluted (in dollars per share) | $ 0.19 | $ 0.19 | $ 0.09 | $ 0.09 | $ 0.47 | $ 0.22 | $ 0.20 | $ 0.05 | $ 0.17 | $ 0.55 | $ 0.94 | $ 0.51 |
Weighted average shares outstanding — Basic (in shares) | 140,023,635 | 138,995,541 | 137,906,284 | |||||||||
Weighted average shares outstanding — Diluted (in shares) | 141,388,785 | 140,707,092 | 139,714,120 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 78.2 | $ 132.9 | $ 71.5 |
Other comprehensive income, net of tax: | |||
Foreign currency translation adjustments | (10.9) | 14.2 | (1.9) |
Unrealized (loss) gain on derivatives | (2.8) | 2.8 | 2.6 |
Employee pension and post-retirement benefits | 4.1 | (5.6) | 0.4 |
Total other comprehensive (loss) income, net of tax | (9.6) | 11.4 | 1.1 |
Comprehensive income | $ 68.6 | $ 144.3 | $ 72.6 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 70.4 | $ 108.5 |
Restricted cash | 2.8 | 0.3 |
Short-term investment | 32 | 19.9 |
Accounts receivable, less allowance of $3.9 and $4.0 at December 31, 2018 and 2017, respectively | 112.5 | 83.7 |
Inventories — net | 190.6 | 152.3 |
Prepaids and other current assets | 32.2 | 19 |
Total current assets | 440.5 | 383.7 |
Property, plant and equipment — net | 119 | 112.2 |
Goodwill | 935.6 | 846.1 |
Other intangible assets — net | 546.7 | 461.4 |
Other non-current assets | 33.2 | 37 |
Total assets | 2,075 | 1,840.4 |
Current liabilities: | ||
Accounts payable | 151 | 103.6 |
Accrued expenses and other liabilities | 183.7 | 169.5 |
Short-term borrowings | 15 | 0 |
Current portion of capital leases | 1.1 | 0.7 |
Product warranties | 27.9 | 24.1 |
Total current liabilities | 378.7 | 297.9 |
Long-term debt and capital leases | 1,321.8 | 1,232.2 |
Deferred income taxes | 104.3 | 91.3 |
Pension and postretirement health obligations | 39.2 | 48.3 |
Other long-term liabilities | 44.6 | 67.1 |
Total non-current liabilities | 1,509.9 | 1,438.9 |
Commitments and contingencies (Note 13) | ||
Total equity: | ||
Common stock ($0.01 par value, 300,000,000 shares authorized, 140,252,693 shares and 139,491,860 shares issued and 140,252,693 shares and 139,440,470 shares outstanding at December 31, 2018 and 2017, respectively) | 1.4 | 1.4 |
Additional paid-in capital (deficit) | (41.5) | (54.7) |
Retained earnings | 268.4 | 189.1 |
Accumulated other comprehensive loss | (41.6) | (32) |
Treasury stock, at cost, 53,308 shares and 51,390 shares, at December 31, 2018 and 2017, respectively | (0.3) | (0.2) |
Total equity | 186.4 | 103.6 |
Total liabilities and equity | $ 2,075 | $ 1,840.4 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Accounts receivable allowance | $ 3.9 | $ 4 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, issued (in shares) | 140,252,693 | 139,491,860 |
Common stock, outstanding (in shares) | 140,252,693 | 139,440,470 |
Treasury stock (in shares) | 53,308 | 51,390 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities | |||
Net earnings | $ 78.2 | $ 132.9 | $ 71.5 |
Adjustments to reconcile net earnings to cash used in operating activities: | |||
Depreciation | 18 | 16.7 | 17.3 |
Amortization of intangible assets | 37 | 31.2 | 31.2 |
Amortization of debt issuance costs | 5.5 | 5.5 | 4.7 |
Loss on extinguishment of debt | 2.7 | 1.7 | 2.7 |
Deferred income taxes | (12.4) | (64.3) | (7.6) |
Stock-based compensation expense | 7 | 11.1 | 6.3 |
(Gain) loss from impairment or disposal of assets — net | (0.4) | (4) | 3.3 |
Pension settlement | 2.4 | 0 | 0 |
Loss on remeasurement of debt and other realized foreign currency derivative | 23.4 | 0 | 0 |
Changes in operating assets and liabilities, excluding the effects of the business acquisition: | |||
Accounts receivable | (590.4) | (541.2) | (502.8) |
Inventories | (25.5) | (1.8) | (3.6) |
Other assets | (9.3) | (0.6) | (11.5) |
Accounts payable | 39.3 | (7.9) | (11.1) |
Other current and long-term liabilities | (24) | (10.6) | 27.6 |
Net cash used in operating activities | (448.5) | (431.3) | (372) |
Cash flows from investing activities | |||
Cash receipts on beneficial interest in sold receivables | 576.4 | 552.1 | 494.3 |
Capital expenditures | (21.4) | (20.7) | (16) |
Proceeds from sale of property, plant and equipment | 0 | 12.3 | 0.5 |
Acquisition of intangible assets | (2.8) | (1.2) | 0 |
Business acquisition, net of cash acquired | (215.6) | 0 | 0 |
Purchase of short-term investment | (35) | 0 | (18.7) |
Proceeds from maturity of short-term investment | 20.7 | 0 | 0 |
Settlement of foreign exchange contract | (10) | 0 | 0 |
Other | 1.2 | 0.9 | 0 |
Proceeds from dispositions | 0 | 0 | 1.1 |
Net cash provided by investing activities | 313.5 | 543.4 | 461.2 |
Cash flows from financing activities | |||
Proceeds from long-term debt | 475.5 | 155 | 1,501.1 |
Repayments on long-term debt and capital leases | (383.2) | (204.1) | (186.8) |
Proceeds from short-term borrowings | 30 | 4 | 0 |
Repayment of short-term borrowings | (15) | (4) | 0 |
Debt issuance costs | (6.8) | (2) | (41.3) |
Payment of deferred consideration | (1.4) | 0 | 0 |
Dividend paid to MTW | 0 | 0 | (1,362) |
Net transactions with MTW | 0 | 0 | (4.6) |
Exercises of stock options | 6.2 | 4.8 | 16.2 |
Payments on tax withholdings for equity awards | (3) | (5.4) | (3.8) |
Net cash provided by (used in) financing activities | 102.3 | (51.7) | (81.2) |
Effect of exchange rate changes on cash | (2.9) | 6.9 | 0.9 |
Net (decrease) increase in cash and cash equivalents and restricted cash | (35.6) | 67.3 | 8.9 |
Balance at beginning of period | 108.8 | 41.5 | 32.6 |
Balance at end of period | 73.2 | 108.8 | 41.5 |
Supplemental disclosures of cash flow information: | |||
Cash paid for income taxes, net of refunds | 47 | 34.3 | 42.1 |
Cash paid for interest, net of related hedge settlements | 94.6 | 94.7 | 69.6 |
Supplemental disclosures of non-cash activities: | |||
Non-cash investing activity: Beneficial interest obtained in exchange for securitized receivables | 744.7 | 723.5 | 636.9 |
Non-cash financing activity: Equipment acquired through capital leases | $ 0.9 | $ 0 | $ 0 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital (Deficit) | Retained Earnings | Net Parent Company Investment | Accumulated Other Comprehensive (Loss) Income | Treasury Stock |
Common stock, outstanding beginning of period (in shares) at Dec. 31, 2015 | 0 | ||||||
Beginning balance at Dec. 31, 2015 | $ 1,211.6 | $ 0 | $ 0 | $ 0 | $ 1,256.1 | $ (44.5) | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 71.5 | 56.2 | 15.3 | ||||
Net transfers to MTW | (1,362) | (1,362) | |||||
Separation related adjustments | (1) | (1) | |||||
Reclassification of net investment to additional paid-in capital | 0 | (91.6) | 91.6 | ||||
Issuance of common stock at Spin-Off (in shares) | 137,016,712 | ||||||
Issuance of common stock at Spin-Off | 0 | $ 1.4 | (1.4) | ||||
Issuance of common stock, equity-based compensation plans (in shares) | 1,584,615 | ||||||
Issuance of common stock, stock-based compensation plans | 16.2 | 16.2 | |||||
Stock-based compensation expense | 6.3 | 6.3 | |||||
Adjustments in connection with the Spin-Off | (0.1) | (0.1) | 0 | ||||
Other comprehensive income (loss) | 1.1 | 1.1 | |||||
Common stock, outstanding end of period (in shares) at Dec. 31, 2016 | 138,601,327 | ||||||
Ending balance at Dec. 31, 2016 | (56.4) | $ 1.4 | (70.6) | 56.2 | 0 | (43.4) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 132.9 | 132.9 | |||||
Issuance of common stock, equity-based compensation plans (in shares) | 890,533 | ||||||
Issuance of common stock, stock-based compensation plans | 4.8 | 4.8 | |||||
Stock-based compensation expense | 11.1 | 11.1 | |||||
Other comprehensive income (loss) | 11.4 | 11.4 | |||||
Value of shares in deferred compensation plan | $ (0.2) | (0.2) | |||||
Common stock, outstanding end of period (in shares) at Dec. 31, 2017 | 139,440,470 | 139,491,860 | |||||
Ending balance at Dec. 31, 2017 | $ 103.6 | $ 1.4 | (54.7) | 189.1 | 0 | (32) | (0.2) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 12.4 | ||||||
Other comprehensive income (loss) | 2.5 | ||||||
Ending balance at Mar. 31, 2018 | $ 125.3 | (49) | 202.6 | (29.5) | |||
Common stock, outstanding beginning of period (in shares) at Dec. 31, 2017 | 139,440,470 | 139,491,860 | |||||
Beginning balance at Dec. 31, 2017 | $ 103.6 | $ 1.4 | (54.7) | 189.1 | 0 | (32) | (0.2) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 24.4 | ||||||
Other comprehensive income (loss) | (5.8) | ||||||
Ending balance at Jun. 30, 2018 | $ 133.7 | (44.3) | 214.6 | (37.8) | |||
Common stock, outstanding beginning of period (in shares) at Dec. 31, 2017 | 139,440,470 | 139,491,860 | |||||
Beginning balance at Dec. 31, 2017 | $ 103.6 | $ 1.4 | (54.7) | 189.1 | 0 | (32) | (0.2) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 78.2 | 78.2 | |||||
Issuance of common stock, equity-based compensation plans (in shares) | 760,833 | ||||||
Issuance of common stock, stock-based compensation plans | 6.2 | 6.2 | |||||
Stock-based compensation expense | 7 | 7 | |||||
Other comprehensive income (loss) | (9.6) | (9.6) | |||||
Value of shares in deferred compensation plan | $ (0.1) | (0.1) | |||||
Common stock, outstanding end of period (in shares) at Dec. 31, 2018 | 140,252,693 | 140,252,693 | |||||
Ending balance at Dec. 31, 2018 | $ 186.4 | $ 1.4 | (41.5) | 268.4 | $ 0 | (41.6) | $ (0.3) |
Beginning balance at Mar. 31, 2018 | 125.3 | (49) | 202.6 | (29.5) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 12 | ||||||
Other comprehensive income (loss) | (8.3) | ||||||
Ending balance at Jun. 30, 2018 | $ 133.7 | $ (44.3) | $ 214.6 | $ (37.8) |
Business and Organization
Business and Organization | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Organization | 1. Business and Organization The Spin-Off and Rebranding On January 29, 2015, the Company's former parent, The Manitowoc Company, Inc. ("MTW"), announced plans to create two independent, public companies to separately operate its two businesses: its crane business and its foodservice business. To effect the separation, MTW first undertook an internal reorganization, following which MTW held the crane business and Manitowoc Foodservice, Inc. ("MFS") held the foodservice business. Then on March 4, 2016, MTW distributed all the MFS common stock to MTW's shareholders on a pro rata basis, and MFS became an independent, publicly-traded company (the "Distribution"). In this Annual Report on Form 10-K, "Spin-Off" refers to both the above described internal reorganization and the Distribution, collectively. On March 3, 2017, MFS filed a Certificate of Amendment to its Amended and Restated Certificate of Incorporation to effect a change of the Company’s name from "Manitowoc Foodservice, Inc." to "Welbilt, Inc." effective March 3, 2017 (the "Name Change"). In connection with the Name Change, the Company also amended and restated its bylaws, by substituting "Welbilt, Inc." for "Manitowoc Foodservice, Inc." to launch the Company's rebranding of its logo and its brand identity to Welbilt. This change was part of the Company's strategic repositioning after the Spin-Off. On March 6, 2017, shares of the Company commenced trading under the Company's new name, Welbilt, Inc., and a new New York Stock Exchange ticker symbol, "WBT." In these consolidated financial statements, unless the context otherwise requires: • "Welbilt" and the "Company" refer to Welbilt, Inc. and its consolidated subsidiaries, after giving effect to the Spin-Off, or, in the case of information as of dates or for periods prior to its separation from MTW, the combined entities of the Foodservice business, and certain other assets and liabilities that were historically held at the MTW corporate level, but were specifically identifiable and attributable to the Foodservice business; and • "MTW" refers to The Manitowoc Company, Inc. and its consolidated subsidiaries, other than, for all periods following the Spin-Off, Welbilt. Description of the Business Welbilt is one of the world’s leading commercial foodservice equipment companies. The Company manufactures a full suite of commercial foodservice equipment supporting hot-side, cold-side and beverage dispensing capabilities and operating 21 manufacturing facilities globally. Its suite of products is used by commercial and institutional foodservice operators including full-service restaurants, quick-service restaurant chains, hotels, resorts, cruise ships, caterers, supermarkets, convenience stores, hospitals, schools and other institutions. The Company reports its operating results through three reportable segments, the Americas (includes markets in United States ("U.S."), Canada and Latin America), EMEA (includes markets in Europe, including Russia and the Commonwealth of Independent States, Middle East and Africa) and APAC (principally comprised of markets in China, Australia, Japan, Philippines, Singapore, South Korea, Thailand, Indonesia, Taiwan, Hong Kong, Malaysia and New Zealand). |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Basis of Presentation | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and Basis of Presentation | 2. Summary of Significant Accounting Policies and Basis of Presentation Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). All intercompany balances and transactions between the Company and its affiliates have been eliminated. During the periods presented prior to the Spin-Off on March 4, 2016, the Company's financial statements were prepared on a combined stand-alone basis derived from the consolidated financial statements and accounting records of MTW. The Company functioned as part of the larger group of companies controlled by MTW. Accordingly, MTW performed certain corporate overhead functions for the Company. Therefore, certain costs related to the Company have been allocated from MTW for the period of January 1, 2016 up to the Spin-Off on March 4, 2016. These allocated costs were primarily related to: (1) corporate support functions that were provided on a centralized basis at a MTW enterprise level including, but not limited to, finance, audit, legal, information technology, human resources, tax, treasury, investor relations, and external reporting; (2) stock-based compensation; (3) employee compensation, pension and benefit costs; and (4) securitization financing costs. These expenses were allocated to Welbilt based on direct usage or direct identification where applicable, and where not applicable, such costs were allocated primarily based on net sales, headcount or based on existing allocation methods, specifically for those costs which were previously partially allocated to Welbilt or other methodologies deemed appropriate by management. Prior to the Spin-Off, cash was managed centrally and flowed through centralized bank accounts controlled and maintained by MTW. Accordingly, cash and cash equivalents held by MTW at the corporate level were not attributable to Welbilt for any of the periods presented prior to the Spin-Off. Only cash amounts specifically attributable to Welbilt are reflected in the accompanying consolidated financial statements. Transfers of cash, both to and from MTW's centralized cash management system, are reflected as a component of "Net transactions with MTW" as a financing activity in the consolidated statements of cash flows. Additionally, none of MTW’s debt has been allocated to the consolidated financial statements as Welbilt has no legal obligation for any of the debt agreements. Welbilt received or provided funding as part of MTW's centralized treasury program. Income tax expense in the consolidated statement of operations for the partial 2016 period prior to the Spin-Off was computed on a separate return basis, as if Welbilt was operating as a separate consolidated group and filed separate tax returns in the jurisdictions in which it operated. As a result of potential changes to the Company's business model and potential past and future tax planning, income tax expense included in the consolidated financial statements for the partial 2016 periods prior to and after the Spin-Off may not be indicative of Welbilt's future expected income tax expense for subsequent periods. In addition, cash tax payments and items of current and deferred taxes may not be reflective of Welbilt's actual tax balances subsequent to the Spin-Off. Welbilt, as a stand-alone entity commencing with the Spin-Off, files U.S. federal and state tax returns on its own behalf. The responsibility for current income tax liabilities of U.S. federal and state combined tax filings were deemed to settle immediately with MTW paying entities effective with the Spin-Off in the respective jurisdictions, whereas state tax returns for certain separate Welbilt filing entities were filed by Welbilt for periods prior to and after the Spin-Off. Cash tax payments commencing with the Spin-Off for the estimated liability are the actual cash taxes paid to the respective tax authorities in the jurisdictions wherever applicable. Prior to the Spin-Off, the operations of Welbilt were generally included in the consolidated tax returns filed by the respective MTW entities, with the related income tax expense and deferred income taxes calculated on a separate return basis in the consolidated financial statements. As a result, the effective tax rate and deferred income taxes of Welbilt may differ from those in periods subsequent to the Spin-Off. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods including costs allocated prior to the Spin-Off. Significant items subject to such estimates and assumptions include inventory obsolescence costs, warranty costs, product liability costs, employee benefit programs, sales rebates and the measurement of income tax assets and liabilities. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. On an ongoing basis, the Company evaluates these assumptions, judgments and estimates. Actual results may differ from these estimates. In addition, the consolidated financial statements may not be indicative of the Company's future performance, and they do not necessarily include all of the actual expenses that would have been incurred by the Company and may not reflect the results of operations, financial position and cash flows had the Company been a stand-alone Company during the entirety of the period presented prior to the Spin-Off. Significant Accounting Policies Cash and Cash Equivalents All short-term investments purchased with an original maturity of three months or less are considered cash equivalents. Our policy is to place our operating demand deposit accounts with high credit quality financial institutions, the balances of which at times may exceed federally insured limits. Restricted Cash Cash and cash equivalents that are restricted as to withdrawal or use under the terms of certain contractual agreements are recorded separately on the consolidated balance sheets and generally, include cash balances held as security under the Company's accounts receivable securitization program. Short-Term Investments The Company considers all investments purchased with an original maturity of more than three months but not greater than one year to be short-term investments. The short-term investment balance as of December 31, 2018 and 2017 represented a certificate of deposit with an original scheduled maturity of 12 months, which the Company has the intent and ability to hold to maturity. It was, therefore, classified as held-to-maturity and carried at amortized cost. The fair value of this instrument was equal to its amortized cost and, as such, there were no unrealized gains or losses associated with the instrument. Management evaluates this held-to-maturity security for other-than-temporary impairment on a quarterly basis by performing a credit review of the issuer. No indicators of other-than-temporary impairment for this security were identified as of December 31, 2018. In addition, the Company has not experienced credit losses during any period. Accounts Receivable Transactions under the Company's securitization programs are accounted for as sales. Sales of trade receivables to the purchaser are reflected as a reduction of accounts receivable in the consolidated balance sheets. In addition, the Company maintains a "beneficial interest," or right to collect cash, in the sold receivables. Cash receipts from the third-party purchasing financial institution at the time of the sale are classified as operating cash while cash receipts from the beneficial interest on sold receivables are classified as investing activities on the consolidated statements of cash flows. The Company deems the interest rate risk related to the deferred purchase price notes to be de minimis, primarily due to the short average collection cycle of the related receivables (i.e., less than 60 days). Accounts receivable are reduced by an allowance for amounts that may become uncollectible in the future. The Company's estimate for the allowance for doubtful accounts related to trade receivables includes an evaluation of specific accounts where it has information that the customer may have an inability to meet its financial obligations together with a general provision for unknown but existing doubtful accounts based on historical experience, which are subject to change if experience improves or deteriorates. Inventories The majority of inventories are valued at the lower of cost or net realizable value. Approximately 92.4% and 92.3% of the Company's inventories were valued using the first-in, first-out ("FIFO") method at December 31, 2018 and 2017 , respectively. The remaining inventories were valued using the last-in, first-out ("LIFO") method. If the FIFO inventory valuation method had been used exclusively, inventories would have increased by $4.2 million and $3.9 million at December 31, 2018 and 2017 , respectively. Finished goods and work-in-process inventories include material, labor and manufacturing overhead costs. Property, Plant and Equipment Property, plant and equipment are stated at cost. Expenditures for maintenance, repairs and minor renewals are charged against earnings as incurred. Expenditures for major renewals and improvements that substantially extend the capacity or useful life of an asset are capitalized and are then depreciated. The cost and accumulated depreciation for property, plant and equipment sold, retired, or otherwise disposed of are relieved from the accounts, and resulting gains or losses are reflected in earnings. Property, plant and equipment are depreciated over the estimated useful lives of the assets using the straight-line depreciation method for financial reporting and on accelerated methods for income tax purposes. Property, plant and equipment are depreciated over the following estimated useful lives: Years Building and improvements 2 — 40 Machinery, equipment and tooling 2 — 20 Furniture and fixtures 3 — 15 Computer hardware and software 2 — 7 Business Combinations The Company allocates the fair value of purchase consideration to the assets acquired and liabilities assumed based on their fair values at the acquisition date. The excess of the fair value of purchase consideration over the fair value of these assets acquired and liabilities assumed is recorded as goodwill. When determining the fair values of assets acquired and liabilities assumed, management makes significant estimates and assumptions, especially with respect to intangible assets. Critical estimates in valuing intangible assets include, but are not limited to, expected future cash flows, which includes consideration of future growth rates and margins, customer attrition rates, future changes in technology and brand awareness, loyalty and position, and discount rates. Fair value estimates are based on the assumptions management believes a market participant would use in pricing the asset or liability. Amounts recorded in a business combination may change during the measurement period, which is a period not to exceed one year from the date of acquisition, as additional information about conditions existing at the acquisition date becomes available. Goodwill and Other Intangible Assets Goodwill is not amortized, but it is tested for impairment annually, or more frequently, as events dictate. See additional discussion of impairment testing under "Impairment of Long-Lived Assets," below. The Company's other intangible assets with indefinite lives, including trademarks and trade names, are not amortized, but are also tested for impairment annually, or more frequently, as events dictate. The Company's other intangible assets with finite lives are subject to amortization and are tested for impairment whenever events or changes in circumstances indicate that their carrying values may not be recoverable. Other intangible assets with finite lives are amortized on a straight-line basis over the following estimated useful lives: Useful lives Patents 10 — 20 years Engineering drawings 15 years Customer relationships 10 — 20 years Design libraries 7 — 20 years The Company performs annual impairment tests of goodwill and intangible assets with indefinite lives at June 30 of each fiscal year and whenever a triggering event occurs between annual impairment tests. The goodwill impairment test is performed for the Company's reporting units which have been determined to be: Americas, EMEA and APAC. When testing for impairment, the Company has the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of any reporting unit or indefinite lived intangible asset is less than its carrying amount. In conducting a qualitative assessment, the Company evaluates the totality of relevant events and circumstances that affect the fair value or carrying value of the reporting unit or asset. These events and circumstances include, but are not limited to, macroeconomic conditions, industry and competitive environment conditions, overall financial performance, reporting unit specific events and market considerations. In those instances where the Company concludes that it is not more likely than not that the fair value is less than the carrying amount, no impairment is indicated and no further impairment test is performed. When the Company chooses not to perform a qualitative assessment, or if, based on the qualitative assessment, the Company concludes it is more likely than not that the fair value is less than the carrying amount, a quantitative impairment test is performed at the reporting unit level utilizing the one-step approach. This one-step approach identifies both the existence of impairment and the amount of the impairment loss. In conducting the quantitative analysis, the Company compares the fair value of the reporting unit with goodwill or the indefinite lived intangible asset to its carrying value. The fair value is determined using the income approach based on the present value of expected future cash flows, including terminal value, and a weighted average cost of capital all of which involve management judgment and assumptions. When the carrying amount of the reporting or the intangible asset exceeds its fair value, the Company recognizes an impairment loss in an amount equal to the excess; however, the impairment loss for goodwill is limited to the total amount of the goodwill allocated to the reporting unit. See Note 7, "Goodwill and Other Intangible Assets — Net," for further details on the Company's impairment assessments. Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the assets’ carrying amount may not be recoverable. When reviewing its long-lived assets, other than goodwill and other intangible assets with indefinite lives, the Company groups its assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities and evaluates the asset group against the sum of the undiscounted future cash flows to determine impairment. If an impairment is determined to exist, the impairment loss is calculated based upon comparison of the fair value to the net book value of the assets. Impairment losses on assets held for sale are based on the estimated proceeds to be received, less costs to sell. The Company did not hold assets held for sale at December 31, 2018 or 2017 . Warranties Estimated warranty costs are recorded in cost of sales at the time of sale of the products based on historical warranty experience for the related product or estimates of projected costs due to specific warranty issues on new products. These estimates are reviewed periodically and are adjusted based on changes in facts, circumstances or actual experience. See Note 14, "Product Warranties," for further details. Product Liabilities The Company records product liability reserves for its self-insured portion of any pending or threatened product liability actions. The reserve is based upon two estimates. First, the Company tracks the population of all outstanding pending and threatened product liability cases to determine an appropriate case reserve for each based upon the Company's best judgment and the advice of legal counsel. These estimates are continually evaluated and adjusted based upon changes to facts and circumstances surrounding the individual cases. Second, the Company determines the amount of additional reserve required to cover product liability claims anticipated to have occurred but have not yet been reported and to account for possible adverse development of the established case reserves. This analysis is performed twice annually. Foreign Currency Translation and Transactions The financial statements of the Company's non-U.S. subsidiaries, where the functional currency is not the U.S. dollar, are translated using the current exchange rate for assets and liabilities and the average exchange rate for the year for income and expense items. Resulting translation adjustments are recorded to "Accumulated other comprehensive loss" ("AOCI") as a component of equity. The Company records foreign currency transaction gains or losses as a component of "Other expense — net". Derivative Financial Instruments and Hedging Activities The Company enters into derivative instruments to hedge interest rate risk, commodity exposure associated with aluminum, copper and steel prices and foreign currency exchange risk. The Company has adopted written policies and procedures that place all financial instruments under the direction of corporate treasury and restrict all derivative transactions to those intended for hedging purposes. The use of financial instruments for trading purposes is strictly prohibited. The fair values of all derivatives are recorded in the consolidated balance sheets. The change in a derivative’s fair value is recorded each period in current earnings or comprehensive income depending on whether the derivative is designated and qualifies as part of a hedge transaction and if so, the type of hedge transaction. The amount reported for derivative instrument fair market value adjustments for cash flow hedges and net investment hedges are reported in the statements of comprehensive income, net of taxes. Fair market value adjustments for fair value hedges, as well as the offsetting gain or loss on the hedged item attributable to the hedged risk, are recognized in current earnings within the same line item associated with the hedged item. Stock-Based Compensation Welbilt employees historically participated in MTW's stock-based compensation plans for the periods prior to the Spin-Off. Stock-based compensation expense for the period prior to the Spin-Off has been allocated to Welbilt based on the awards and terms previously granted to its employees. Until consummation of the Spin-Off, Welbilt continued to participate in MTW's stock-based compensation plans and record stock-based compensation expense based on the stock-based awards granted to the Welbilt employees. In conjunction with the Spin-Off, the Company adopted the 2016 Omnibus Incentive Plan (the "2016 Plan") that permits the granting of stock options, restricted stock awards, restricted stock units, performance share awards and units, and other types of stock-based and cash awards. In addition, the 2016 Plan permits the issuance of awards ("Replacement Awards") in partial substitution for awards relating to shares of common stock of MTW that were outstanding immediately prior to the Spin-Off. Stock-based compensation awards are measured at fair value at the date of grant and expensed over their vesting periods. Stock based compensation is recognized only for those awards expected to vest. The expense, net of forfeitures, is recognized using the straight-line method. Stock-based compensation expense related to Welbilt employees of $7.0 million , $11.1 million and $6.3 million has been recorded in the consolidated statements of operations for the years ended December 31, 2018 , 2017 and 2016 , respectively. Refer to Note 19, "Stock-Based Compensation," for additional discussion regarding details of the Company's stock-based compensation plan. Employee Benefit Plans The Company provides a range of benefits to its employees and retired employees, including pensions and postretirement health care coverage. Plan assets and obligations are recorded annually based on our measurement date utilizing various actuarial assumptions such as discount rates, expected return on plan assets, compensation increases, retirement and mortality rates, and health care cost trend rates as of that date. The approaches used to determine the annual assumptions are as follows: • Discount Rate - The discount rate assumptions are based on the interest rate of non-callable high-quality corporate bonds, with appropriate consideration of our pension plans’ participants’ demographics and benefit payment terms. • Expected Return on Plan Assets - The expected return on plan assets assumptions are based on the Company's expectation of the long-term average rate of return on assets in the pension funds, which is reflective of the current and projected asset mix of the funds and considers the historical returns earned on the funds. • Retirement and Mortality Rates - The retirement and mortality rate assumptions are based primarily on actual plan experience and mortality tables. • Health Care Cost Trend Rates - The health care cost trend rate assumptions are developed based on historical cost data, near-term outlook and an assessment of likely long-term trends. Measurements of net periodic benefit cost are based on the assumptions used for the previous year-end measurements of assets and obligations. The Company reviews its actuarial assumptions on an annual basis and makes modifications to the assumptions when appropriate. As required by U.S. GAAP, the effects of the modifications are recorded currently or amortized over future periods. The Company has developed the assumptions with the assistance of its independent actuaries and other relevant sources, and believes that the assumptions used are reasonable; however, changes in these assumptions could impact the Company's financial position, results of operations or cash flows. See Note 15, "Employee Benefit Plans," for further details. Deferred Compensation Plan The Welbilt Deferred Compensation Plan is an unfunded, non-tax-qualified deferred compensation plan for highly compensated and key management employees and for directors that allows participants to defer a portion of their compensation. The Plan permits the Company, at its option, to make matching contributions to the participants' accounts. The Company utilizes a rabbi trust to hold assets intended to satisfy the Company's obligations under the deferred compensation plan. The trust restricts the Company's use and access to the assets held but is subject to the claims of the Company's general creditors. Plan participants are able to direct deferrals and Company matching contributions into two separate investment programs, Program A and Program B. Program A invests solely in the Company’s stock; dividends paid on the Company’s stock, if any, are automatically reinvested, and all distributions must be made in Company stock. Program A is accounted for as a plan that does not permit diversification. The Company stock held by Program A is carried at cost, is included in "Treasury stock" in the consolidated balance sheets. The deferred compensation obligation for Program A is included in "Other long-term liabilities" in the consolidated balance sheets. Program B offers a variety of investment options but does not include Company stock as an investment option. All distributions from Program B must be made in cash. Participants cannot transfer assets between programs. Program B is accounted for as a plan that permits diversification. Changes in the fair value of the assets are recognized in earnings. The deferred compensation obligation is adjusted, with a charge or credit to compensation cost, to reflect changes in the fair value of the obligation. The assets are included in "Other non-current assets", and the related obligations are included in "Other long-term liabilities" in the consolidated balance sheets. Revenue Recognition Prior to the adoption of the provisions of Accounting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers (Topic 606)" and with additional updates subsequently issued (collectively, "ASU 2014-09"), the Company generally recognized and earned revenue when all the following criteria were satisfied with regard to a specific transaction: persuasive evidence of a sales arrangement exists; the price is fixed or determinable; collectability of cash is reasonably assured; and delivery has occurred or services have been rendered. Shipping and handling fees were reflected in net sales and shipping and handling costs were reflected in "Cost of sales" in the consolidated statements of operations. On January 1, 2018, the Company adopted the provisions of ASU 2014-09, which creates a single, comprehensive revenue recognition model for all contracts with customers. The model is based on changes in contract assets (rights to receive consideration) and liabilities (obligations to provide a good or service.) The Company makes judgments including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price, and allocating the transaction price to each performance obligation. Subsequent to the adoption of ASU 2014-09, revenue is recognized based on the satisfaction of performance obligations, which occurs when control of a good or service transfers to a customer. A majority of the Company's net sales continue to be recognized at the point in time when products are shipped from its manufacturing facilities. For the majority of foodservice equipment and aftermarket parts and support, the transfer of control and revenue recognition materializes when the products are shipped from the manufacturing facility or the service is provided to the customer. The Company typically invoices its customers with payment terms of 30 days and the Company's average collection cycle is generally less than 60 days. The amount of consideration received and revenue recognized varies with marketing incentives such as annual customer rebate programs and returns that are offered to customers. Variable consideration as a result of customer rebate programs is typically based on calendar-year purchases, and is determined using the expected value method in interim periods as prescribed in the guidance. Customers have the right to return eligible equipment and parts. The expected returns are based on an analysis of historical experience. The estimate of revenue is adjusted at the earlier of when the most likely amount of the expected consideration changes or when the consideration becomes fixed. The impact of such adjustments was not material in the year ended December 31, 2018 . Substantially all of the Company's revenues comprise revenues from contracts with customers. These revenues are disaggregated by major source and geographic location, as the Company believes it best depicts how the nature, amount, timing and uncertainty of its revenue and cash flows are affected by economic factors. Net sales by product class and segment are as follows: Year Ended December 31, 2018 (in millions) Commercial Foodservice Whole Goods Aftermarket Parts and Support Total Americas $ 907.0 $ 183.9 $ 1,090.9 EMEA 258.8 48.6 307.4 APAC 163.2 28.6 191.8 Total net sales $ 1,329.0 $ 261.1 $ 1,590.1 The Company also recognizes revenue for foodservice-based projects. These revenues are generally recognized at the point-in-time in which control transfers to the customer. However, depending on the nature of the performance obligations in the contract, revenues may be recognized over time. The Company sells separately-priced extended warranties that extend coverage beyond the standard product warranty by 12 to 60 months. Payments are at the inception of the contract and revenue is recognized over the term of the agreement on a straight-line basis, which the Company believes approximates the timing of costs expected to be incurred in satisfying the obligations of the contract. As of December 31, 2018 and 2017 , there was $6.0 million and $6.7 million , respectively, of deferred revenues related to extended warranties. The Company expects to recognize $2.2 million of the deferred revenues for the year ended December 31, 2019 and $3.8 million will be recognized thereafter. See additional discussion of product warranties in Note 14, "Product Warranties." The Company also defers revenues related to performance obligations that have not yet been met. At December 31, 2018 , these deferred revenues totaled $0.5 million , all of which is expected to be recognized in 2019. See section below labeled, "Recently Adopted Accounting Pronouncements," for a discussion of the impact of the adoption of ASU 2014-09 on the Company's consolidated financial statements and related notes to financial statements. Research and Development Research and development costs are charged to expense as incurred within "Selling, general and administrative expenses" in the consolidated statements of operations and amounted to $37.3 million , $39.4 million and $35.2 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Research and development costs include salaries, materials, contractor fees and other administrative costs. Restructuring Charges Restructuring charges for exit and disposal activities are recognized when the liability is incurred. The liability for the restructuring charge associated with an exit or disposal activity is measured initially at its fair value. Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company records a valuation allowance that represents a reserve on deferred tax assets for which utilization is not more likely than not. Management judgment is required in determining the Company's provision for income taxes, deferred tax assets and liabilities, and the valuation allowance recorded against net deferred tax assets. The Company does not currently provide for additional U.S. and foreign income taxes which would become payable upon repatriation of undistributed earnings of foreign subsidiaries. The Company recognizes liabilities for uncertain income tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step requires management to estimate and measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. It is inherently difficult and subjective to estimate such amounts, as management must determine the probability of various possible outcomes. The Company reevaluates these uncertain tax positions on a quarterly basis or when new information becomes available to management. These reevaluations are based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, successfully settled issues under audit, expirations due to statutes, and new audit activity. Such a change in recognition or measurement could result in the recognition of a tax benefit or an increase to the tax accrual. The Company records discrete income tax expense or benefit in the period in which it is identified. Examples of such types of discrete |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | 3. Acquisitions and Divestitures Acquisitions On April 19, 2018 , the Company, through a wholly-owned subsidiary, acquired 100% of the share capital of Avaj International Holding AB ("Avaj") (the "Crem Acquisition") for aggregate consideration of approximately 1,800 million Swedish Krona ("SEK") or $220.3 million based on the exchange rate in effect on the closing date. The consideration comprised $159.8 million in cash, including $2.4 million of interest paid to the seller, and an aggregate $60.5 million for the repayment of certain indebtedness owed under third-party borrowings and shareholder loans. The Crem Acquisition was funded through cash on hand and additional borrowings under existing credit lines. Crem International Holding AB ("Crem"), a wholly-owned subsidiary of Avaj, is a global manufacturer of professional coffee machines headquartered in Solna, Sweden. Crem develops, manufactures and markets a full suite of coffee machines under three brands: Coffee Queen, Expobar and Spengler for use in offices, restaurants, cafes and coffee shops, catering and convenience stores. The Crem Acquisition provides the Company with an established presence in hot beverage equipment, a complementary product category, potential operational synergies and cross-selling benefits and an increased presence in Europe and Asia. The Crem Acquisition was accounted for under the acquisition method of accounting which requires, among other things, that the assets acquired and the liabilities assumed be measured at their fair values as of the closing date of the transaction. The fair value of the net assets acquired was based on a preliminary valuation and the estimates and assumptions are subject to change within the measurement period. The Company is continuing to evaluate the (i) intangible assets; (ii) deferred tax assets and liabilities; (iii) income tax and non-income tax accruals. The Company will finalize the purchase price allocation as soon as practicable within the measurement period, but in no event later than one year following the Crem Acquisition date. During the year ended December 31, 2018 , the Company incurred approximately $5.2 million of professional services and other direct acquisition and integration costs related to the Crem Acquisition that are included in "Selling, general and administrative expenses" in the consolidated statement of operations. In addition, the Company entered into a foreign currency exchange contract for the purchase price exposure of SEK 1,800 million , which incurred a loss for the year ended December 31, 2018 of $10.0 million in the first half of 2018 and is included in the consolidated statement of operations in "Other expense — net." The operations of Crem contributed approximately $62.0 million to net sales while incurring a loss from operations of approximately $2.8 million for the year ended December 31, 2018 . The loss from operations is inclusive of costs associated with an incident at a subsidiary of Crem which resulted in the diversion of €4.0 million to parties outside of the Company, of which €1.0 million was subsequently recovered. As a result of this incident, the Company recorded a loss of $3.7 million for the diverted funds, net of recovery, and the associated costs for external legal counsel, accounting and administration efforts in "Selling, general and administrative expenses" during the fourth quarter of 2018 , of which $3.4 million was incurred directly by Crem. The Company is pursuing recovery opportunities, however, there can be no assurance that any additional recoveries will be made. In addition, the Company will incur additional costs related to the recovery efforts. Supplemental pro forma information has not been presented because the effect of this acquisition was not material to the Company's consolidated statements of operations. The following table summarizes the consideration paid for Crem and the amounts of the identified assets acquired and liabilities assumed at the acquisition date: (in millions) Total purchase price $ 220.3 Less: cash acquired 4.7 Total purchase price, net of cash acquired $ 215.6 Recognized preliminary amounts of identifiable assets acquired and (liabilities assumed), at fair value: Cash $ 4.7 Accounts receivable 17.2 Inventories 16.9 Prepaids and other current assets 1.9 Property, plant and equipment 4.9 Other intangible assets 131.2 Other non-current assets 2.1 Accounts payable (11.4 ) Accrued expenses and other liabilities (6.0 ) Deferred income taxes (32.8 ) Pension and postretirement health obligations (0.4 ) Other long-term liabilities (5.0 ) Preliminary estimate of the fair value of assets acquired and liabilities assumed 123.3 Allocation to goodwill $ 97.0 The preliminary fair value estimates for the Company's identifiable intangible assets other than goodwill acquired as part of the acquisition are as follows: (in millions) Estimated Fair Values Estimated Useful Life (in years) Weighted Average Amortization Period (in years) Customer relationships $ 64.2 10 10.0 Design libraries 20.6 7 — 20 10.4 Total definite-lived intangible assets 84.8 10.1 Trade name 46.4 Indefinite Total intangible assets $ 131.2 The preliminary estimated goodwill was allocated to the Company's reportable segments as follows: EMEA $84.2 million and APAC $12.8 million . The goodwill was primarily attributed to increased synergies that are expected to be achieved from the integration of Crem. The goodwill is not expected to be deductible for tax purposes. Divestitures In January 2017, the Company completed the sale, which relates entirely to the APAC reportable segment, of a certain parts and field service business in Shanghai, China for a net purchase price of $1.1 million , with cash proceeds received of $1.1 million in December 2016. |
Accounts Receivable Securitizat
Accounts Receivable Securitization | 12 Months Ended |
Dec. 31, 2018 | |
Transfers and Servicing [Abstract] | |
Accounts Receivable Securitization | 4. Accounts Receivable Securitization Prior to the Spin-Off, the Company sold accounts receivable through an accounts receivable securitization facility, ("the Prior Securitization Program"), comprised of two funding entities: Manitowoc Funding, LLC ("U.S. Seller") and Manitowoc Cayman Islands Funding Ltd. ("Cayman Seller"). The U.S. Seller historically serviced domestic entities of both the Foodservice and Crane segments of MTW and remitted all funds received directly to MTW. The Cayman Seller historically serviced solely Welbilt foreign entities and remitted all funds to Welbilt entities. The U.S. Seller remained with MTW subsequent to the Spin-Off, while the Cayman Seller was transferred to Welbilt subsequent to the Spin-Off. A portion of the U.S. Seller's historical expenses related to bond administration fees and settlement fees were allocated to the Company. As the Cayman Seller is directly attributable to Welbilt, the assets, liabilities, income and expenses of the Cayman Seller are included in the Company's consolidated balance sheets and statements of operations. The Company's cost of funds under the facility used a London interbank offered rate ("LIBOR") index rate plus a 1.25% fixed spread. The Company participates in a $110.0 million accounts receivable securitization program whereby the Company sells certain of its domestic trade accounts receivable and certain of its non-U.S. trade accounts receivable to a wholly-owned, bankruptcy-remote, foreign special purpose entity, which in turn, sells, conveys, transfers and assigns to a third-party financial institution (the "Purchaser"), all the rights, title and interest in and to its pool of receivables. This program is currently expected to terminate in March 2019. Upon termination, we expect the securitization will be repaid by receipts of previously sold trade receivables, to the extent borrowings are outstanding at termination. Under this program, the Company generally receives cash consideration up to a certain limit and records a non-cash exchange for sold receivables for the remainder of the purchase price ("deferred purchase price"). The sale of these receivables qualifies for sale accounting treatment. The Company maintains a "beneficial interest," or right to collect cash, in the sold receivables. Cash receipts from the Purchaser at the time of the sale are classified as operating cash while cash receipts from the beneficial interest on sold receivables are classified as investing activities on the consolidated statements of cash flows. The Company along with certain of its subsidiaries act as servicers of the sold receivables. The servicers administer, collect and otherwise enforce these receivables and are compensated for doing so on terms that are generally consistent with what would be charged by an unrelated servicer. The servicers initially receive payments made by obligors on the receivables but are required to remit those payments in accordance with the receivables purchase agreement. Upon termination of the program, the Purchaser will have no recourse for uncollectible receivables. The securitization program also contains customary affirmative and negative covenants. Among other restrictions, these covenants require the Company to meet specified financial tests, which include a Consolidated Interest Coverage Ratio and a Consolidated Total Leverage Ratio that are the same as the covenant ratios required under the 2016 Credit Agreement. The accounts receivable securitization program was amended on February 2, 2018 and again on October 23, 2018 in conjunction with amendments to the 2016 Credit Agreement to provide for certain conforming changes including amending the Consolidated Total Leverage Ratio required thereunder. See Note 10, "Debt," for additional details of the 2016 Credit Agreement and related amendments. Due to a short average collection cycle of less than 60 days for such accounts receivable as well as the Company's collection history, the fair value of its beneficial interest in the sold receivables approximates book value and as of December 31, 2018 and 2017 , totaled $56.9 million and $62.9 million respectively, and is recorded in "Accounts receivable, less allowance" in the consolidated balance sheets. The Company deems the interest rate risk related to this beneficial interest to be de minimis, primarily due to the short average collection cycle of the related receivables. The carrying value of trade accounts receivables removed from the Company's consolidated balance sheets in connection with the accounts receivable securitization program was $96.9 million and $99.5 million at December 31, 2018 , and 2017 , respectively. |
Inventories - Net
Inventories - Net | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories - Net | 5. Inventories — Net The components of "Inventories—net" at December 31, 2018 and 2017 are summarized as follows: December 31, (in millions) 2018 2017 Inventories — gross: Raw materials $ 90.4 $ 73.9 Work-in-process 16.0 18.9 Finished goods 108.8 86.9 Total inventories — gross 215.2 179.7 Excess and obsolete inventory reserve (20.4 ) (23.5 ) Net inventories at FIFO cost 194.8 156.2 Excess of FIFO costs over LIFO value (4.2 ) (3.9 ) Inventories — net $ 190.6 $ 152.3 |
Property, Plant and Equipment -
Property, Plant and Equipment - Net | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment - Net | 6. Property, Plant and Equipment — Net The components of "Property, plant and equipment — net" at December 31, 2018 and 2017 are summarized as follows: December 31, (in millions) 2018 2017 Land $ 9.8 $ 9.5 Building and improvements 88.5 88.9 Machinery, equipment and tooling 226.6 227.3 Furniture and fixtures 6.5 6.0 Computer hardware and software 58.3 55.1 Construction in progress 21.1 15.7 Total cost 410.8 402.5 Less accumulated depreciation (291.8 ) (290.3 ) Property, plant and equipment — net $ 119.0 $ 112.2 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets - Net | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets - Net | 7. Goodwill and Other Intangible Assets — Net The Company has three reportable segments: Americas, EMEA and APAC. The changes in the carrying amount of goodwill by reportable segment for the years ended December 31, 2018 , 2017 and 2016 are as follows: (in millions) Americas EMEA APAC Total Gross balance as of December 31, 2016 $ 1,144.8 $ 208.2 $ 8.0 $ 1,361.0 Accumulated asset impairments (312.2 ) (203.5 ) — (515.7 ) Net balance as of December 31, 2016 $ 832.6 $ 4.7 $ 8.0 $ 845.3 Foreign currency impact $ — $ 0.2 $ 0.6 $ 0.8 Gross balance as of December 31, 2017 1,144.8 208.4 8.6 1,361.8 Accumulated asset impairments (312.2 ) (203.5 ) — (515.7 ) Net balance as of December 31, 2017 $ 832.6 $ 4.9 $ 8.6 $ 846.1 Impact of acquisition $ — $ 84.2 $ 12.8 $ 97.0 Foreign currency impact — (6.0 ) (1.5 ) (7.5 ) Gross balance as of December 31, 2018 1,144.8 286.6 19.9 1,451.3 Accumulated asset impairments (312.2 ) (203.5 ) — (515.7 ) Net balance as of December 31, 2018 $ 832.6 $ 83.1 $ 19.9 $ 935.6 As of June 30, 2018 and 2017 , the Company performed the annual impairment test for its reporting units, as well as its indefinite-lived intangible assets, and based on those results, no impairment was indicated. The gross carrying amount and accumulated amortization of the Company's intangible assets other than goodwill are as follows as of December 31, 2018 and 2017 : 2018 2017 (in millions) Gross Accumulated Net Gross Accumulated Net Trademarks and trade names $ 218.7 $ — $ 218.7 $ 177.5 $ — $ 177.5 Customer relationships 474.8 (217.4 ) 257.4 415.3 (192.3 ) 223.0 Patents 5.8 (1.7 ) 4.1 2.8 (1.7 ) 1.1 Other intangibles 162.4 (95.9 ) 66.5 144.9 (85.1 ) 59.8 Total $ 861.7 $ (315.0 ) $ 546.7 $ 740.5 $ (279.1 ) $ 461.4 Amortization expense for the years ended December 31, 2018 , 2017 and 2016 was $37.0 million , $31.2 million and $31.2 million , respectively. At December 31, 2018 , the weighted average remaining useful lives of the customer relationships, patents, and other intangibles were approximately 11 years, 17 years and 8 years, respectively. The total weighted average remaining useful life of the definite-lived intangible assets was approximately 10 years. As of December 31, 2018 , the estimated future amortization of intangible assets, other than goodwill, excluding the impact of any future acquisitions or divestitures is as follows: (in millions) Year ending December 31: 2019 $ 35.8 2020 35.6 2021 35.6 2022 33.7 2023 29.0 Thereafter 158.3 $ 328.0 |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses and Other Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses and Other Liabilities | 8. Accounts Payable and Accrued Expenses and Other Liabilities Accounts payable and accrued expenses and other liabilities at December 31, 2018 and 2017 are summarized as follows: December 31, (in millions) 2018 2017 Accounts payable: Trade accounts payable $ 151.0 $ 103.6 Total accounts payable $ 151.0 $ 103.6 Accrued expenses and other liabilities: Interest payable $ 2.2 $ 7.8 Income taxes payable 10.2 13.9 Employee related expenses 30.0 30.8 Restructuring expenses 3.0 5.0 Profit sharing and incentives 19.9 11.5 Accrued rebates 50.8 50.0 Deferred revenue — current 2.7 4.2 Customer advances 3.1 2.6 Product liability 1.3 1.4 Derivative liability 18.4 1.2 Miscellaneous accrued expenses 42.1 41.1 Total accrued expenses and other liabilities $ 183.7 $ 169.5 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. Income Taxes The Company, as a stand-alone entity commencing with the Spin-Off, files U.S. federal and state tax returns on its own behalf. The responsibility for current income tax liabilities of U.S. federal and state combined tax filings were deemed to settle immediately with MTW paying entities effective with the Spin-Off in the respective jurisdictions, whereas state tax returns for certain separate filing entities of the Company's were filed by the Company for periods prior to and after the Spin-Off. Net cash tax payments commencing with the Spin-Off for the estimated liability are the actual cash taxes paid to the respective tax authorities in the jurisdictions wherever applicable. Prior to the Spin-Off, the operations of the Company were generally included in the consolidated tax returns filed by the respective MTW entities, with the related income tax expense and deferred income taxes calculated on separate return bases in the consolidated financial statements. As a result, the effective tax rate and deferred income taxes in 2018 and 2017 may differ from those in historical periods. On December 22, 2017 , the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"). The Tax Act made broad and complex changes to the U.S. tax code the effects of which began in 2017 . Effective in 2018 , the Tax Act reduced the U.S. federal corporate statutory tax rate to 21%, introduced new provisions designed to tax global intangible low-taxed income ("GILTI") and transactions subject to base erosion anti-abuse tax ("BEAT"), disallowed interest and provided a tax rate incentive for foreign derived intangible income ("FDII"). The significant change in 2017 included, but was not limited to, requiring a one-time Deemed Repatriation Transition Tax ("Transition Tax") on certain unrepatriated earnings of foreign subsidiaries that is payable over eight years. Final regulations related to the Tax Act that are issued by June 22, 2019 may have retroactive effects to the enactment date, resulting in potential adjustments in future reporting periods for provisions of the Tax Act that became effective beginning in 2017 . Proposed amendments to the Income Tax Regulations under Section 163(j) of the U.S. Internal Revenue Code were issued on November 26, 2018 and are effective for the taxable year 2019 after publication in the Federal Register, at which time they will be adopted by the Company. Additional discussion of the impact of the Tax Act on the consolidated financial statements is included below. "Earnings before income taxes" in the consolidated statements of operations is comprised of the following for the years ended December 31, 2018 , 2017 and 2016 : (in millions) 2018 2017 2016 Domestic $ (8.0 ) $ 32.5 $ 31.5 Foreign 97.0 88.9 70.7 Total $ 89.0 $ 121.4 $ 102.2 "Income taxes" in the consolidated statements of operations is comprised of the following for the years ended December 31, 2018 , 2017 and 2016 : (in millions) 2018 2017 2016 Current: Federal and state $ (4.3 ) $ 28.2 $ 19.7 Foreign 29.1 24.6 18.6 Total current tax expense 24.8 52.8 38.3 Deferred: Federal and state (14.0 ) (56.6 ) (9.2 ) Foreign — (7.7 ) 1.6 Total deferred tax benefit (14.0 ) (64.3 ) (7.6 ) Total: Federal and State (18.3 ) (28.4 ) 10.5 International 29.1 16.9 20.2 Income taxes $ 10.8 $ (11.5 ) $ 30.7 A reconciliation of the U.S. federal statutory income tax rate to the Company's effective tax rate is as follows for the years ended December 31, 2018 , 2017 and 2016 : 2018 2017 2016 Federal income tax at statutory rate 21.0 % 35.0 % 35.0 % State income provision (benefit) 0.5 (2.6 ) 0.9 Manufacturing and research incentives (3.1 ) (1.7 ) (1.9 ) Taxes on foreign income 7.6 (3.5 ) (4.8 ) Repatriation of foreign income - Tax Act (11.2 ) 11.1 — Change in federal income tax statutory rate - Tax Act — (37.5 ) — Global intangible low taxed income 1.5 — — Foreign derived intangible income (1.3 ) — — Adjustments for valuation allowances (0.2 ) (11.2 ) 2.5 Discrete adjustments (2.6 ) — — Other items (0.1 ) 0.9 (1.7 ) Effective tax rate 12.1 % (9.5 )% 30.0 % During 2018 , the Company's effective tax rate was 12.1% , compared to the 2017 effective tax rate of (9.5)% . The increase in the effective tax rate in 2018 compared to 2017 was primarily driven by a lower net benefit of 15.4% from incorporating the elements of the Tax Act. In addition, the statutory rate was 21.0% and 35.0% for 2018 and 2017 respectively, which reduction resulted in an additional tax impact of 7.6% for taxes on foreign income in 2018 , including non-deductible Crem acquisition costs, versus a 3.5% benefit in 2017 . An increase in the effective tax rate in 2018 also resulted from a reduced benefit of 11.0% for valuation allowance adjustments, which was partially offset by the 2.6% discrete tax benefit in 2018 . During 2017 , the Company's effective tax rate was (9.5)% , compared to the 2016 effective tax rate of 30.0% . The net decrease in the effective tax rate is primarily due to the benefit from the revaluation of the U.S. deferred tax assets and liabilities in conjunction with the Tax Act. In addition, a valuation allowance was released that was recorded against the deferred tax assets for certain entities in the United Kingdom ("U.K"). A $3.5 million net state tax benefit was recorded in 2017 primarily due to revised estimates of the Company's state tax liabilities. These benefits are partially offset by the Transition Tax on previously untaxed accumulated and current earnings and profits ("E&P") of certain foreign subsidiaries. Domestic loss before income taxes in 2018 represents 9.0% of total earnings and an unfavorable 7.6% effective tax rate impact for higher taxes on foreign income, including non-deductible Crem acquisition costs, whereas 2017 domestic earnings represent 26.8% of total earnings and a favorable 3.5% effective tax rate impact for net lower taxes on foreign income. The 2017 effective tax rate was favorably impacted by income earned in jurisdictions, primarily in Canada and China, where the statutory rates are approximately 25.0%. The 2016 domestic earnings represent 30.8% of total earnings and a favorable 4.8% effective tax rate impact for net lower taxes on foreign income. As a result of the Tax Act, U.S. federal and state income taxes have been recorded on undistributed foreign earnings accumulated through December 31, 2018 . To the extent that the foreign earnings are repatriated, the related U.S. tax liability may be reduced by any foreign income taxes paid on these earnings, including withholding taxes incurred directly upon actual repatriation. The Company has not recorded a deferred tax liability for foreign withholding or other foreign local tax that would be due when cash is actually repatriated to the U.S. because those foreign earnings are considered permanently reinvested or may be remitted substantially free of any additional local taxes. Further, the determination of the amount of the unrecognized deferred tax liability related to the undistributed earnings is not practicable. Deferred income taxes are provided for the effects of temporary differences between the assets and liabilities recognized for financial reporting and tax reporting. These temporary differences result in taxable or deductible amounts in future years. Significant components of the Company’s non-current deferred tax assets and liabilities as of December 31, 2018 and 2017 were as follows: (in millions) 2018 2017 Non-current deferred tax assets (liabilities): Inventories $ 2.8 $ 3.5 Accounts receivable 1.0 0.9 Property, plant and equipment (3.7 ) (2.4 ) Intangible assets (139.3 ) (118.0 ) Deferred employee benefits 20.1 19.9 Product warranty reserves 7.6 7.5 Product liability reserves 2.6 2.2 Loss carryforwards 40.6 41.3 Other 19.3 12.9 Non-current deferred tax liabilities (49.0 ) (32.2 ) Less valuation allowance (40.7 ) (41.0 ) Net non-current deferred tax liabilities $ (89.7 ) $ (73.2 ) Current and long-term tax assets and liabilities included in the consolidated balance sheets are comprised of the following as of December 31, 2018 and 2017 : (in millions) 2018 2017 Financial Statement Line Item Income tax receivable $ 15.6 $ 4.3 Prepaids and other current assets Deferred tax asset 14.6 18.1 Other non-current assets Income taxes payable (10.2 ) (13.9 ) Accrued expenses and other liabilities Income taxes payable (0.9 ) (12.5 ) Other long-term liabilities Deferred tax liabilities (104.3 ) (91.3 ) Deferred income taxes The Securities and Exchange Commission ("SEC") staff issued Staff Accounting Bulletin ("SAB") No. 118, which provides guidance on accounting for the tax effects of the Tax Act enacted on December 22, 2017. SAB No. 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date. To the extent that the accounting for certain income tax effects of the Tax Act was incomplete but a reasonable estimate could be determined, a provisional estimate was recorded in the 2017 consolidated financial statements. The Company’s accounting for the following elements of the Tax Act is complete. A summary of the significant implementation items are as follows: • Reduction of U.S. federal corporate tax rate : The Tax Act reduced the U.S. corporate statutory tax rate to 21.0%, effective January 1, 2018. For the U.S. related deferred tax assets and deferred tax liabilities, the Company recorded a net deferred tax benefit of $45.5 million for the year ended December 31, 2017 . No adjustments of this deferred tax benefit were recorded during 2018 . • Transition Tax : The Transition Tax is a tax on certain previously untaxed accumulated and current E&P of the Company’s foreign subsidiaries. Management was able to reasonably estimate the Transition Tax and recorded a provisional Transition Tax obligation of $13.5 million , with a corresponding adjustment to income tax expense for the year ended December 31, 2017 . Based on revised E&P computations performed in 2018 , there was a $10.0 million benefit recorded for 2018 relating to the Transition Tax obligation. The measurement period adjustment was an 11.2% benefit to the 2018 effective tax rate. The Transition Tax, which has now been determined to be complete, resulted in recording a total Transition Tax obligation of $3.5 million . The Company’s accounting for significant items of the Tax Act that became effective in 2018 include the following: • GILTI : The Tax Act created a new requirement that certain income earned by controlled foreign corporations ("CFCs") must be included currently in the gross income of the CFCs U.S. shareholder. Under U.S. GAAP, the Company is allowed to make an accounting policy choice of either (1) treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense, commencing in 2018 upon its effective date, when incurred (the "period cost method") or (2) factoring such amounts into the measurement of deferred taxes (the "deferred method"). The Company adopted the period cost method to record GILTI for the three months ended March 31, 2018 and accordingly, deferred taxes are not recorded for GILTI. As a result, no changes to valuation allowances as a result of GILTI have been recorded. The unfavorable effect of GILTI on the 2018 effective tax rate was approximately 1.5% . • FDII : The Tax Act provided a U.S. federal tax rate of 13.1% on FDII, compared to the statutory federal tax rate of 21.0%. The favorable effect of FDII on the 2018 effective tax rate was approximately 1.3% . • Capital requirements : As of December 31, 2018 , approximately $72.4 million of the $73.2 million of cash and cash equivalents, including restricted cash, on the consolidated balance sheet was held by foreign entities. Management’s intent is to reinvest the earnings of foreign subsidiaries indefinitely outside the U.S. As of December 31, 2018 , the Company has approximately $180.2 million of pre-tax foreign loss carryforwards, which are available to reduce future foreign tax liabilities. Foreign loss carryforwards are not subject to any time restrictions on their future use for substantially all of the balance and $134.2 million are offset by a valuation allowance. The Company also has approximately $63.3 million of pre-tax U.S. capital loss carryforwards which expire in 2019 and are offset by a valuation allowance and an unrecognized tax benefit. As of each reporting date, the Company's management considers new evidence, both positive and negative, that could impact management's view regarding future realization of deferred tax assets. For the year ended December 31, 2018 , the Company determined that the deferred income tax assets of certain entities in the United Kingdom, Singapore, Thailand and India will not be realized and did not release the valuation allowance recorded against those assets. For the year ended December 31, 2017 , the Company determined that sufficient positive evidence existed to conclude that it is more likely than not that additional deferred taxes of $8.6 million of the total $36.8 million recorded in the U.K. are realizable, and therefore, reduced the valuation allowance accordingly. The Company has additional valuation allowances recorded on certain of the other deferred income tax assets in the United Kingdom, and certain entities in Singapore, Thailand and India, as it remains more likely than not that they will not be utilized. The Company will continue to periodically evaluate its valuation allowance requirements in light of changing facts and circumstances, and may adjust its deferred tax asset valuation allowances accordingly. It is reasonably possible that the Company will either add to, or reverse a portion of its existing deferred tax asset valuation allowances in the future. Such changes in the deferred tax asset valuation allowances will be reflected in the current operations through the Company’s income tax provision, and could have a material effect on operating results. A reconciliation of the Company's unrecognized tax benefits is as follows for the years ended December 31, 2018 , 2017 and 2016 : (in millions) 2018 2017 2016 Balance at beginning of year $ 12.3 $ 12.5 $ 16.6 Additions based on tax positions related to the current year — — 0.8 Additions for tax positions of prior years 3.3 0.2 1.0 Reductions for tax positions of prior years (4.1 ) (0.4 ) — Reductions for equity adjustments — — (4.3 ) Reductions for lapse of statute — — (1.6 ) Balance at end of year $ 11.5 $ 12.3 $ 12.5 The Company’s unrecognized tax benefits as of December 31, 2018 , 2017 and 2016 , if recognized, would impact the effective tax rate. The decrease in unrecognized tax benefits is primarily due to the lower U.S. federal statutory tax rate, partially offset by recognition of additional amounts from the Crem acquisition. The Company recognizes interest and penalties related to tax liabilities as a part of income tax expense. As of December 31, 2018 and 2017 , the Company has accrued interest and penalties of $1.5 million and $0.2 million , respectively. During the next twelve months, it is reasonably possible that federal, state and foreign tax resolutions could change unrecognized tax benefits and income tax expense in the range of $0.2 million to $1.7 million . MTW has filed tax returns on behalf of the Company in the U.S. and various state and foreign jurisdictions prior to the Spin-Off. The Company's separate federal and state tax returns for the 2014 through 2018 tax years generally remain subject to examination by U.S. and various state authorities. Tax years 2014 through 2018 remain subject to examination in Canada and Germany. Tax years 2009 through 2018 remain subject to audit in China. The Company regularly assesses the likelihood of an adverse outcome resulting from examinations to determine the adequacy of its tax reserves. As of December 31, 2018 , the Company believes that it is more likely than not that the tax positions it has taken will be sustained upon the resolution of its audits resulting in no material impact on its consolidated financial position and the results of operations and cash flows. However, the final determination with respect to any tax audits, and any related litigation, could be materially different from the Company’s estimates and/or from its historical income tax provisions and accruals and could have a material effect on operating results and/or cash flows in the periods for which that determination is made. In addition, future period earnings may be adversely impacted by litigation costs, settlements, penalties, and/or interest assessments. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | 10. Debt Outstanding debt at December 31, 2018 and 2017 is summarized as follows: (in millions, except percentage data) 2018 Weighted Average Interest Rate 2017 Weighted Average Interest Rate Revolving loan facility $ 15.0 4.06 % $ — — % Revolving credit facility 78.0 4.70 % 25.0 4.41 % Term Loan B facility 855.0 5.22 % 815.0 4.90 % 9.50% Senior Notes due 2024 425.0 9.72 % 425.0 9.72 % Capital leases 2.8 4.50 % 2.7 4.17 % Total debt and capital leases, including current portion 1,375.8 1,267.7 Less: Revolving loan facility (15.0 ) — Current portion of capital leases (1.1 ) (0.7 ) Unamortized debt issuance costs (1) (24.2 ) (26.4 ) Hedge accounting fair value adjustment (2) (13.7 ) (8.4 ) Total long-term debt and capital leases $ 1,321.8 $ 1,232.2 (1) Total outstanding debt issuance costs, net of amortization as of December 31, 2018 and 2017 was $27.3 million and $28.6 million , respectively, of which $3.1 million and $2.2 million , respectively, was related to the revolving credit facility and recorded in "Other non-current assets" in the consolidated balance sheets. (2) Represents the change in fair value due to changes in benchmark interest rates related to the Company's Senior Notes due 2024. Refer to Note 11, "Derivative Financial Instruments," for additional information on the Company's interest rate swap designated as a fair value hedge. Maturities of debt, excluding capital leases, are as follows as of December 31, 2018 : (in millions) Year ending December 31: 2019 $ 15.0 2020 — 2021 3.3 2022 3.3 2023 81.3 Thereafter 1,270.1 $ 1,373.0 Senior Secured Credit Facilities On March 3, 2016, the Company entered into a credit agreement (as amended, restated, supplemented or otherwise modified from time to time the "2016 Credit Agreement") for a $1,200.0 million senior secured credit facility consisting of (i) a senior secured revolving credit facility in an aggregate principal amount of $225.0 million (the "Revolving Facility") and (ii) a senior secured Term Loan B facility in an aggregate principal amount of $975.0 million (the "Term Loan B Facility" and, together with the Revolving Facility, the "Senior Secured Credit Facilities") with JPMorgan Chase Bank, N.A., as administrative agent and collateral agent, J.P. Morgan Securities LLC, Goldman Sachs Bank USA, HSBC Securities (USA) Inc., and Citigroup Global Markets Inc., on behalf of certain of its affiliates, as joint lead arrangers and joint bookrunners, and certain lenders, as lenders. The Revolving Facility included (i) a $20.0 million sublimit for the issuance of letters of credit on customary terms, and (ii) a $40.0 million sublimit for swingline loans on customary terms. The Company entered into security and other agreements relating to the 2016 Credit Agreement. The 2016 Credit Agreement contained financial covenants including, but not limited to (a) a Consolidated Interest Coverage Ratio, which measures the ratio of (i) Consolidated EBITDA, as defined in the 2016 Credit Agreement, to (ii) Consolidated Cash Interest Expense, and (b) a Consolidated Total Leverage Ratio, which measures the ratio of (i) Consolidated Indebtedness to (ii) Consolidated EBITDA for the most recent four fiscal quarters. At inception, borrowings under the Senior Secured Credit Facilities bore interest at a rate per annum equal to, at the option of the Company, (i) LIBOR plus the applicable margin of 4.75% for Term Loan B subject to a 1.00% LIBOR floor and 1.50% - 2.75% for the Revolving Facility, based on consolidated total leverage, or (ii) an alternate base rate plus the applicable margin, which will be 1.00% lower than for LIBOR loans. During the second, third and fourth quarters of 2016 , the Company made voluntary prepayments of the outstanding principal on the Term Loan B Facility of $25.0 million , $45.0 million and $80.0 million , respectively, and incurred losses on early extinguishment of debt for the write-off of the related unamortized debt issuance costs of $0.5 million , $0.8 million and $1.4 million , respectively, totaling $2.7 million which is included in "Loss on modification or extinguishment of debt" in the consolidated statement of operations for the year ended December 31, 2016 . On March 6, 2017, the 2016 Credit Agreement was amended, providing for a decrease to the maximum applicable margin for LIBOR and Alternate Base Rate ("ABR") loans by 1.75% on the Term Loan B Facility (the "Second Amendment"). The repricing was completed at par, and established for six months a 1.0% premium in the case of another repricing event. JPMorgan Chase Bank, N.A., as administrative agent, and JPMorgan Chase Bank, N.A. and Goldman Sachs Bank, USA were joint bookrunners on the repricing. In connection with the Second Amendment, the Company incurred costs of $1.4 million , which were recorded in "Long-term debt and capital leases" in the consolidated balance sheets and are being amortized over the remaining term of the Term Loan B Facility. Additionally, the Company recorded a loss on extinguishment of debt of $0.6 million related to unamortized debt issuance costs as a result of the Second Amendment, which is included in "Loss on modification or extinguishment of debt" in the consolidated statement of operations for the year ended December 31, 2017 . Subsequent to the Second Amendment, the borrowings under the Senior Secured Credit Facilities bore interest at a rate per annum equal to, at the option of the Company, (i) LIBOR plus an applicable margin of 3.00% for Term Loan B subject to a 1.00% LIBOR floor and LIBOR plus 1.50% - 2.75% for the Revolving Facility, based on consolidated total leverage, or (ii) an alternate base rate plus the applicable margin, which will be 1.00% lower than for LIBOR loans. On September 7, 2017, the 2016 Credit Agreement was again amended, providing a 25 basis-point decrease to the maximum applicable margin for LIBOR and ABR loans on the Term Loan B Facility (the "Third Amendment"). The repricing was completed at par, and established for six months a 1.0% premium in the case of another repricing event. JPMorgan Chase Bank, N.A., was the administrative agent on this repricing. In connection with the Third Amendment, the Company incurred costs of $0.6 million , which were recorded in "Long-term debt and capital leases" in the consolidated balance sheets and are being amortized over the remaining term of the Term Loan B Facility. Additionally, the Company recorded a loss on early extinguishment of debt of $1.1 million related to unamortized debt issuance costs as a result of the Third Amendment, which is included in "Loss on modification or extinguishment of debt" in the consolidated statement of operations for the year ended December 31, 2017 . Subsequent to the Third Amendment, the borrowings under the Senior Secured Credit Facilities bore interest at a rate per annum equal to, at the option of the Company, (i) LIBOR plus an applicable margin of 2.75% for Term Loan B subject to a 1.00% LIBOR floor and LIBOR plus 1.50% - 2.75% for the Revolving Facility, based on consolidated total leverage, or (ii) an alternate base rate plus the applicable margin, which will be 1.00% lower than for LIBOR loans. During the second quarter of 2017 , the Company made a voluntary prepayment of the outstanding principal on the Term Loan B Facility of $10.0 million and incurred a loss on extinguishment of debt for the write-off of the related unamortized debt issuance costs of $0.2 million , which is included in "Loss on modification or extinguishment of debt" in the consolidated statement of operations for the year ended December 31, 2017 . On February 2, 2018, the Company entered into Amendment No. 4 (the "Fourth Amendment") to the 2016 Credit Agreement, which increased the Consolidated Total Leverage Ratio for each of the quarters ended December 31, 2017 , March 31, 2018 and June 30, 2018 to 5.25 : 1.00 . The required ratio level would then reduce 0.25 each subsequent quarter until the ratio reaches 4.00 : 1.00 in the quarter ending September 30, 2019. On April 13, 2018, the Company entered into the Incremental Revolving Facility Amendment (the "Fifth Amendment") to the 2016 Credit Agreement whereby the aggregate revolving commitments of the Revolving Facility increased by $50.0 million to $275.0 million . On October 23, 2018 (the "Amendment Effective Date"), the Company entered into Amendment No. 6 (the "Sixth Amendment") to the 2016 Credit Agreement, among the Company, the subsidiary borrowers party thereto, the lenders and other financial parties from time to time the party thereto and JPMorgan Chase Bank, N.A., individually and as administrative agent. The Sixth Amendment (i) replaced and refinanced all amounts outstanding and committed under the 2016 Credit Agreement such that, as of the Amendment Effective Date, the aggregate amount of Term Loan B outstanding was $900.0 million and the aggregate amount of Revolving Facility was $400.0 million , of which $90.0 million was drawn, (ii) extended the maturity of the Term Loan B to October 2025 and the Revolving Facility to October 2023 and (iii) made certain other changes to the 2016 Credit Agreement as set forth therein. Following the Sixth Amendment, borrowings under the 2016 Credit Agreement bear interest at a rate per annum equal to, at our option, either (i) LIBOR plus an applicable margin of, 2.50% for the Term Loan B Facility and a range from 1.50% to 2.50% for the Revolving Facility (depending on our consolidated total leverage ratio) or (ii) an alternate base rate, plus applicable margins of 1.00% less than in the case of LIBOR-based borrowings. The Sixth Amendment revised the financial covenants under the 2016 Credit Agreement to (a) maximum consolidated total leverage ratio of 5.75 : 1.00 , with decreases of 0.25 every fourth fiscal quarter beginning with the fiscal quarter ending December 31, 2019, and decreases of 0.50 every fourth fiscal quarter beginning with the fiscal quarter ending December 31, 2021 until the ratio reaches 4.25 : 1.00 in the fiscal quarter ending December 31, 2022, and (b) a minimum consolidated interest coverage ratio of 2.50 : 1.00 , with increases of 0.25 every fourth fiscal quarter beginning with the fiscal quarter ending December 31, 2019 until the ratio reaches 3.00 : 1.00 in the fiscal quarter ending December 31, 2020; provided, however, that during a covenant holiday acquisition transition period, the consolidated total leverage ratio may exceed the applicable maximum by up to and including 0.50 (but in no event shall exceed 5.50 : 1.00 ). The Sixth Amendment also provided for a (i) sublimit for the issuance of letters of credit under the Revolving Facility to $30.0 million and (ii) aggregate principal amount of allowed incremental revolving or term loan facilities under the 2016 Credit Agreement in an amount not to exceed the sum of (a) $275.0 million plus (b) an additional amount, so long as, after giving effect to the incurrence of such additional amount, the resulting proforma secured leverage ratio does not exceed 3.75 : 1.00 . In connection with the Sixth Amendment, the Company incurred costs of approximately $12.8 million . Of this amount, $4.6 million were capitalized and recorded in "Long-term debt and capital leases" and $1.9 million in "Other non-current assets" in the consolidated balance sheets and are being amortized over the new term of the 2016 Credit Agreement. The remaining $6.3 million of costs incurred in association with the Sixth Amendment were expensed as these costs related to third-party costs in association with modification of the 2016 Credit Agreement and have been included in "Loss on modification or extinguishment of debt" in the consolidated statement of operations for the year ended December 31, 2018 . Additionally, the Company recorded a loss on extinguishment of debt of $1.7 million related to unamortized debt issuance costs which were extinguished in association with the Sixth Amendment, which is included in "Loss on modification or extinguishment of debt" in the consolidated statement of operations for the year ended December 31, 2018 . During the fourth quarter of 2018 , the Company made voluntary prepayments of the outstanding principal on the Term Loan B Facility of $45.0 million and incurred losses for the write-off of the related unamortized debt issuance costs of $1.0 million which is included in "Loss on modification or extinguishment of debt" in the consolidated statement of operations for the year ended December 31, 2018 . At December 31, 2018 , the Revolving Facility balance was $78.0 million with a weighted average interest rate of 4.70% per annum. We had $3.2 million in outstanding stand-by letters of credit and $318.8 million available for additional borrowings under the Revolving Facility. As of December 31, 2018 , the spreads for LIBOR and alternate base rate borrowings were 2.50% and 1.50% , respectively, given the Company's effective Consolidated Total Leverage Ratio. As of December 31, 2018 , the Company was in compliance with all affirmative and negative covenants of the 2016 Credit Agreement. Senior Notes On February 18, 2016, the Company issued 9.50% Senior Notes due 2024 in an aggregate principal amount of $425.0 million (the "Senior Notes") under an indenture with Wells Fargo Bank, National Association, as trustee (the "Trustee"). The Senior Notes are fully and unconditionally guaranteed, jointly and severally, on an unsecured basis by each of the Company's domestic restricted subsidiaries that is a borrower or guarantor under the Senior Secured Credit Facilities. The Senior Notes and the subsidiary guarantees are unsecured, senior obligations. The Senior Notes were initially sold to qualified institutional buyers pursuant to Rule 144A (and outside the United States in reliance on Regulation S) under the Securities Act. In September 2016, the Company completed an exchange offer pursuant to which all of the initial Senior Notes were exchanged for new Senior Notes, the issuance of which was registered under the Securities Act. The Senior Notes are redeemable, at the Company's option, in whole or in part from time to time, at any time prior to February 15, 2019, at a price equal to 100.0% of the principal amount thereof plus a "make-whole" premium and accrued but unpaid interest to the date of redemption. The Company did not exercise this option prior to February 15, 2019 and as a result, it has expired. In addition, the Company may redeem the Senior note at its option, in whole or in part, at the following redemption prices (expressed as percentages of the principal amount thereof) if redeemed during the 12-month period commencing on February 15 of the years set forth below: Year Percentage 2019 107.125 % 2020 104.750 % 2021 102.375 % 2022 and thereafter 100.000 % Prior to February 15, 2019, the Company also had the option to use the net cash proceeds of one or more underwritten public equity offerings of qualified capital stock to redeem up to 35% of the principal amount of the Senior Notes at a redemption price of 109.500% of the principal amount thereof plus accrued and unpaid interest, if any, to the date of redemption, upon the terms and subject to the conditions set forth in the indenture governing the Senior Notes. The Company did not exercise this option prior to February 15, 2019 and as a result, it has expired. The Company must generally offer to repurchase all the outstanding Senior Notes upon the occurrence of certain specific change of control events at a purchase price equal to 101.000% of the principal amount of Senior Notes purchased plus accrued and unpaid interest to the date of purchase. The indenture provides for customary events of default. Generally, if an event of default occurs (subject to certain exceptions), the Trustee or the holders of at least 25% in aggregate principal amount of the then-outstanding Senior Notes may declare all the Senior Notes to be due and payable immediately. The indenture governing the Senior Notes contains limitations on the Company's ability to effect mergers and change of control events as well as other limitations, including limitations on: the declaration and payment of dividends or other restricted payments; incurring additional indebtedness or issuing preferred stock; the creation or existence of certain liens; incurring restrictions on the ability of certain of the Company's subsidiaries to pay dividends or other payments; transactions with affiliates; and sales of assets. As of December 31, 2018 , $425.0 million aggregate principal amount of Senior Notes was outstanding, with a weighted average interest rate of 9.72% per annum. As of December 31, 2018 , the Company was in compliance with all affirmative and negative covenants pertaining to the Senior Notes. Revolving Loan Facility In April 2018, through a wholly-owned subsidiary, the Company entered into a short-term secured $30.0 million revolving loan facility for working capital requirements. This revolving loan facility bears interest at LIBOR plus an applicable margin of 1.90% and matures on April 18, 2019. During 2018 , the Company repaid $15.0 million of the revolving loan facility and currently intends to repay the remainder of the facility on or prior to its maturity. This facility is secured by cash held by Manitowoc China Foodservice Co. Ltd, a wholly owned subsidiary and contains no financial covenants. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 11. Derivative Financial Instruments The Company's risk management objective is to ensure that business exposures to risks that have been identified and measured and are capable of being controlled are minimized or managed using what it believes to be the most effective and efficient methods to eliminate, reduce or transfer such exposures. Operating decisions consider these associated risks and the Company structures transactions to minimize or manage these risks whenever possible. The primary risks the Company manages using derivative instruments are interest rate risk, commodity price risk and foreign currency exchange risk. Interest rate swaps are entered into to manage interest rate risk associated with the Company’s fixed and floating-rate borrowings. A cross-currency interest rate swap protects the value of the Company’s investments in its foreign subsidiaries. Swap contracts on various commodities are used to manage the price risk associated with forecasted purchases of materials used in the Company's manufacturing process. The Company also enters into various foreign currency derivative instruments to help manage foreign currency risk associated with its projected purchases and sales and foreign currency denominated receivable and payable balances. The Company recognizes all derivative instruments as either assets or liabilities at fair value in the consolidated balance sheets. Commodity swaps and foreign currency exchange contracts are designated as cash flow hedges of forecasted purchases of commodities and currencies, certain interest rate swaps as cash flow hedges of floating-rate borrowings, and the remainder as a fair value hedge of fixed-rate borrowings, and a cross-currency interest rate swap as a hedge of net investments in its foreign subsidiaries. Cash flow hedging strategy For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of AOCI in the consolidated balance sheets and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative instruments representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. In the next twelve months, the Company estimates $1.2 million of unrealized losses , net of tax, related to currency rate and commodity price hedging will be reclassified from AOCI into earnings. Foreign currency and commodity hedging is generally completed prospectively on a rolling basis for 15 and 36 months, respectively, depending on the type of risk being hedged. During the first quarter of 2017, the Company entered into two interest rate swap agreements with a total notional amount of $600.0 million to manage interest rate risk exposure by converting the Company’s floating-rate debt to a fixed-rate basis, thus reducing the impact from fluctuations in interest rates on future interest expense. These agreements involve the receipt of floating rate amounts in exchange for fixed rate interest payments over the life of the agreements without an exchange of the underlying principal and have termination dates of March 2019 for $175.0 million notional amount and March 2020 for the remaining $425.0 million notional amount. Approximately 44.2% of the Company’s total outstanding long-term debt had its interest payments designated as cash flow hedges under these interest rate swap agreements as of December 31, 2018 . The Company did not enter into any interest rate swap agreements designated as a cash flow hedge during the year ended December 31, 2016 . As of December 31, 2018 , 2017 and 2016 , the Company had the following outstanding commodity and currency forward contracts that were entered into as hedges of forecasted transactions: Units Hedged Commodity: 2018 2017 2016 Unit Aluminum 1,446 1,620 1,663 MT Copper 546 667 746 MT Natural gas — — 56,416 MMBtu Steel 7,080 7,713 8,663 Short tons Units Hedged Currency: 2018 2017 2016 Canadian Dollar 10,990,000 18,080,000 26,130,000 European Euro 9,878,000 8,545,000 11,261,848 British Pound 12,041,770 7,807,744 4,191,763 Mexican Peso 175,960,000 126,400,000 148,200,000 Thailand Baht — — 23,231,639 Singapore Dollar 1,480,000 1,765,000 4,375,000 The effects of derivative instruments on the consolidated statements of comprehensive income and consolidated statements of operations for the years ended December 31, 2018 , 2017 and 2016 for gains or losses initially recognized in AOCI in the consolidated balance sheets were as follows: Derivatives in cash flow hedging relationships (in millions) Pretax gain (loss) recognized in AOCI (effective portion) Location of gain (loss) reclassified from AOCI into income (effective portion) Pretax gain (loss) reclassified from AOCI into income (effective portion) Location of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) 2018 2017 2016 2018 2017 2016 2018 2017 2016 Foreign currency exchange contracts $ (2.2 ) $ 3.8 $ (0.1 ) Cost of sales $ (0.7 ) $ 3.3 $ — Cost of sales $ — $ — $ — Commodity contracts (1.0 ) 2.4 2.2 Cost of sales 2.3 1.1 (1.5 ) Cost of sales 0.1 0.2 — Interest rate swap contracts 1.5 2.8 — Interest expense — — — Interest expense — — — Total $ (1.7 ) $ 9.0 $ 2.1 $ 1.6 $ 4.4 $ (1.5 ) $ 0.1 $ 0.2 $ — Fair value hedging strategy For derivative instruments that are designated and qualify as a fair value hedge (i.e. hedging the exposure to changes in the fair value of an asset or a liability or an identified portion thereof that is attributable to a particular risk), the gain or loss on the derivative instrument as well as the offsetting gain or loss on the hedged item attributable to the hedged risk are recognized in the same line item associated with the hedged item in current earnings. During the first quarter of 2017, the Company entered into an interest rate swap agreement with a total notional amount of $425.0 million to manage interest rate risk exposure by converting the Company’s fixed-rate debt to a floating-rate basis. This agreement involved the receipt of fixed rate amounts in exchange for floating rate interest payments over the life of the agreement without an exchange of the underlying principal. In June 2017, this interest rate swap agreement was terminated and the Company received $7.7 million , the fair value of the swap including accrued interest. Accordingly, hedge accounting was discontinued and the hedge accounting adjustment to the Company's Senior Notes of $0.3 million will be amortized to "Interest expense" in the consolidated statements of operations through February 2024. On October 3, 2017, the Company entered into an interest rate swap agreement with a total notional amount of $425.0 million to manage interest rate risk exposure by converting the Company’s fixed-rate debt to a floating-rate basis. This agreement involves the receipt of fixed rate amounts in exchange for floating rate interest payments over the life of the agreement without an exchange of the underlying principal and terminates in February 2024. Approximately 31.3% of the Company’s total outstanding long-term debt had its interest payments designated as a fair value hedge under this interest rate swap agreement as of December 31, 2018 . The gain or loss on the hedged item (i.e., fixed-rate borrowing of the Senior Notes) attributable to the hedged benchmark interest rate risk (risk of changes in the applicable LIBOR swap rate) and the offsetting gain or loss on the related interest rate swap is as follows: Derivatives in fair value hedging relationships (in millions) Loss on Swap Income Statement Classification Gain on Borrowings 2018 2017 2016 2018 2017 2016 Interest rate swap contract $ (4.0 ) $ (9.0 ) $ — Interest expense $ 5.3 $ 8.7 $ — Total $ (4.0 ) $ (9.0 ) $ — $ 5.3 $ 8.7 $ — The net gain of $1.3 million and net loss of $0.3 million for the years ended December 31, 2018 and 2017 respectively, represent hedge ineffectiveness. The net swap settlements that accrue each period are reported in "Interest expense" in the consolidated statements of operations. As of December 31, 2018 and 2017 , the total notional amount of the Company’s receive-fixed/pay-variable interest rate swap was $425.0 million for each period. The Company did not have any interest rate swap agreements designated as a fair value hedge during the year ended December 31, 2016 . Hedge of net investment in foreign operations strategy For derivative instruments that are designated and qualify as a hedge of a net investment in a foreign currency, the gain or loss is reported in AOCI as part of the cumulative translation adjustment to the extent it is effective. Any ineffective portions of net investment hedges are recognized in earnings during the period of change. During the first quarter of 2017 , the Company entered into a three -year cross-currency interest rate swap contract for a notional value of €50.0 million to protect the value of its net investment in Euros. The carrying value of the net investment in Euros that is designated as a hedging instrument is remeasured at each reporting date to reflect the changes in the foreign currency exchange spot rate, with changes since the last remeasurement date recorded in AOCI. The Company uses the forward-rate method of assessing hedge effectiveness when cross-currency swap contracts are designated as hedging instruments. The Company did not have any cross-currency interest rate swap agreements during the year ended December 31, 2016 . The location and effects of the cross-currency interest rate swap contract on the consolidated statements of comprehensive income and consolidated statements of operations for the years ended December 31, 2018 , 2017 and 2016 for gains or losses initially recognized in AOCI in the consolidated balance sheets were as follows: Derivatives in net investments hedging relationships (in millions) Pretax gain (loss) recognized in AOCI (effective portion) Location of gain (loss) reclassified from AOCI into income (effective portion) Amount of gain (loss) reclassified from AOCI into income (effective portion) 2018 2017 2016 2018 2017 2016 Interest rate swap contract $ 2.7 $ (7.5 ) $ — N/A $ — $ — $ — Total $ 2.7 $ (7.5 ) $ — $ — $ — $ — N/A = Not applicable As of December 31, 2018 , there was no ineffectiveness on hedges designated as net investment hedges. Derivatives Not Designated as Hedging Instruments The Company enters into foreign currency exchange contracts that are not designated as hedge relationships to offset, in part, the impact of certain intercompany transactions and to further mitigate certain other short-term currency impacts. These derivative instruments are not designated as hedging relationships; therefore, the fair value of gains or losses on these contracts are recorded in earnings. During the first quarter of 2018, the Company entered into a short-term foreign currency exchange contract to purchase SEK 1,800 million and sell $223.8 million with maturity dates ranging from March 1, 2018 to April 5, 2018 ("SEK Contract"). The purpose of this contract was to mitigate the impact of currency fluctuations on the contracted price of the Crem Acquisition, which was denominated in SEK (see Note 3, "Acquisitions and Divestitures," for additional discussion of the Crem Acquisition). In April 2018, the Company settled the SEK Contract and realized a loss of $10.0 million recognized in " Other expense — net " in the consolidated statement of operations. The cash flows related to the settlement of the SEK Contract are not related to the Company’s ongoing revenue-producing or cost-generating activities and, therefore, have been included within the investing activities in the consolidated statement of cash flows. For derivative instruments that are not designated as hedging instruments, the gains or losses on the derivatives are recognized in current earnings within " Other expense — net " in the consolidated statements of operations. As of December 31, 2018 , 2017 and 2016 , the Company had the following outstanding currency forward contracts that were not designated as hedging instruments: Units Hedged Commodity: 2018 2017 2016 Unit Aluminum — — 28 MT Steel — — 340 Short tons Units Hedged Currency: 2018 2017 2016 European Euro 69,700,000 69,300,000 16,000,000 Swiss Franc 5,300,000 4,800,000 3,150,000 British Pound 23,704,468 14,912,019 8,192,692 Singapore Dollar 28,447,000 28,127,000 — The location and effects on the consolidated statements of operations for the years ended December 31, 2018 , 2017 , 2016 and for gains or losses related to derivative instruments not designated as hedging instruments were as follows: Derivatives NOT designated as hedging instruments (in millions) Amount of gain (loss) recognized in income on derivative Location of gain (loss) recognized in income on derivative Year Ended 2018 2017 2016 Foreign currency exchange contracts $ (9.7 ) $ (6.5 ) $ (0.2 ) Other expense — net Commodity contracts — short-term — — 0.8 Other expense — net Total $ (9.7 ) $ (6.5 ) $ 0.6 The fair value of outstanding derivative contracts recorded as assets in the consolidated balance sheets as of December 31, 2018 and 2017 was as follows: Asset Derivatives (in millions) Balance Sheet Location Fair Value 2018 2017 Derivatives designated as hedging instruments: Foreign currency exchange contracts Prepaids and other current assets $ 0.5 $ 1.1 Commodity contracts Prepaids and other current assets 0.2 1.7 Interest rate swap contracts Prepaids and other current assets 4.8 1.7 Commodity contracts Other non-current assets — 0.6 Interest rate swap contracts Other non-current assets 3.4 2.3 Total derivatives designated as hedging instruments $ 8.9 $ 7.4 Derivatives NOT designated as hedging instruments: Foreign currency exchange contracts Prepaids and other current assets 0.1 — Total derivatives NOT designated as hedging instruments $ 0.1 $ — Total asset derivatives $ 9.0 $ 7.4 The fair value of outstanding derivative contracts recorded as liabilities in the consolidated balance sheets as of December 31, 2018 and 2017 was as follows: Liability Derivatives (in millions) Balance Sheet Location Fair Value 2018 2017 Derivatives designated as hedging instruments: Foreign currency exchange contracts Accrued expenses and other liabilities $ 1.5 $ 0.6 Commodity contracts Accrued expenses and other liabilities 0.9 0.1 Interest rate swap contracts Accrued expenses and other liabilities 15.7 — Commodity contracts Other long-term liabilities 0.4 — Interest rate swap contracts Other long-term liabilities 5.9 17.7 Total derivatives designated as hedging instruments $ 24.4 $ 18.4 Derivatives NOT designated as hedging instruments: Foreign currency exchange contracts Accrued expenses and other liabilities $ 0.3 $ 0.5 Total derivatives NOT designated as hedging instruments $ 0.3 $ 0.5 Total liability derivatives $ 24.7 $ 18.9 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
Fair Value of Financial Instruments | 12. Fair Value of Financial Instruments In accordance with the Company's policy, fair value is defined as 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. The policy classifies the inputs used to measure fair value into the following hierarchy: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities Level 2 Unadjusted quoted prices in active markets for similar assets or liabilities, or Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or Inputs other than quoted prices that are observable for the asset or liability Level 3 Unobservable inputs for the asset or liability The Company endeavors to utilize the best available information in measuring fair value. The Company estimates the fair value of its Senior Notes and Term Loan B Facility based on quoted market prices of the instruments. Because these markets are typically thinly traded, the assets and liabilities are classified as Level 2 of the fair value hierarchy. The carrying values of the Company's cash and cash equivalents, accounts receivable, accounts payable and beneficial interest in sold receivables (see Note 4, "Accounts Receivable Securitization," ) approximate fair value, without being discounted as of December 31, 2018 and 2017 due to the short-term nature of these instruments. The Company carries its derivatives at fair value and values them using various pricing models or discounted cash flow analysis that incorporate observable market parameters, such as interest rate yield curves and currency rates, which are classified as Level 2 inputs. The fair value of the Company's 9.50% Senior Notes due 2024 was approximately $457.0 million and $483.8 million as of December 31, 2018 and 2017 , respectively. The fair value of the Company's Term Loan B Facility under its Senior Secured Credit Facilities was approximately $815.5 million and $818.1 million as of December 31, 2018 and 2017 , respectively. See Note 10, "Debt," for a description of the debt instruments and their related carrying values. The following tables set forth financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2018 and 2017 by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Fair Value as of December 31, 2018 (in millions) Level 1 Level 2 Level 3 Total Current assets: Short-term investment $ — $ 32.0 $ — $ 32.0 Foreign currency exchange contracts — 0.6 — 0.6 Commodity contracts — 0.2 — 0.2 Interest rate swap contracts — 4.8 — 4.8 Total current assets at fair value — 37.6 — 37.6 Non-current assets: Interest rate swap contracts — 3.4 — 3.4 Total non-current assets at fair value — 3.4 — 3.4 Total assets at fair value $ — $ 41.0 $ — $ 41.0 Current liabilities: Foreign currency exchange contracts $ — $ 1.8 $ — $ 1.8 Commodity contracts — 0.9 — 0.9 Interest rate swap contracts — 15.7 — 15.7 Total current liabilities at fair value — 18.4 — 18.4 Non-current liabilities: Commodity contracts — 0.4 — 0.4 Interest rate swap contracts — 5.9 — 5.9 Total non-current liabilities at fair value — 6.3 — 6.3 Total liabilities at fair value $ — $ 24.7 $ — $ 24.7 Fair Value as of December 31, 2017 (in millions) Level 1 Level 2 Level 3 Total Current assets: Short-term investment $ — $ 19.9 $ — $ 19.9 Foreign currency exchange contracts — 1.1 — 1.1 Commodity contracts — 1.7 — 1.7 Interest rate swap contracts — 1.7 — 1.7 Total current assets at fair value — 24.4 — 24.4 Non-current assets: Commodity contracts — 0.6 — 0.6 Interest rate swap contracts — 2.3 — 2.3 Total non-current assets at fair value — 2.9 — 2.9 Total assets at fair value $ — $ 27.3 $ — $ 27.3 Current liabilities: Foreign currency exchange contracts $ — $ 1.1 $ — $ 1.1 Commodity contracts — 0.1 — 0.1 Total current liabilities at fair value — 1.2 — 1.2 Non-current liabilities: Interest rate swap contracts — 17.7 — 17.7 Total non-current liabilities at fair value — 17.7 — 17.7 Total liabilities at fair value $ — $ 18.9 $ — $ 18.9 |
Contingencies and Significant E
Contingencies and Significant Estimates | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Significant Estimates | 13. Contingencies and Significant Estimates Environmental, Product Liability and Product Warranty Matters As of December 31, 2018 and 2017 , the Company held reserves for environmental matters related to certain locations of approximately $0.7 million and $0.8 million , respectively which are included in "Accrued expenses and other liabilities" in the consolidated balance sheets. At certain of the Company's other facilities, it has identified potential contaminants in soil and groundwater. The ultimate cost of any remediation required will depend upon the results of future investigation and, therefore, such costs are currently not reasonably estimable. Based upon available information, the Company does not currently expect the costs of environmental compliance, including potential remediation at any of these locations, to have a material adverse effect on its financial condition, results of operations or cash flows individually or in the aggregate. As of December 31, 2018 , various product-related lawsuits were pending. For products sold outside of the United States and Canada, the Company is insured by a third-party insurance company. For products sold in the United States and Canada, the Company is insured, to the extent permitted under applicable law, with self-insurance retention levels. The Company's self-insurance retention levels vary by business and fluctuate with the Company's risk management practices. In the United States, the Company's current self-insured retention level is $0.3 million per occurrence and $1.0 million in the aggregate for product liability claims. In Canada, the Company's self-insured retention level is $0.1 million per occurrence and $2.0 million in the aggregate for product liability claims. In addition, the Company's self-retention level for commercial general liability is $2.0 million in the aggregate. The Company's self-insurance retention levels vary by business, and have fluctuated over the last ten years. Product liability reserves are included in "Accrued expenses and other liabilities" in the consolidated balance sheets and were $1.3 million and $1.4 million at December 31, 2018 and 2017 , respectively; $0.6 million and $0.4 million , respectively, was reserved specifically for actual cases, and $0.7 million and $1.0 million , respectively, for claims anticipated to have occurred but are not yet reported, which were estimated using actuarial methods. Based on the Company's experience in defending product liability claims, management believes the current reserves are adequate for estimated case resolutions on aggregate self-insured claims and third-party insured claims. Any recoveries from insurance carriers are dependent upon the legal sufficiency of claims and solvency of insurance carriers. At December 31, 2018 and 2017 , the Company had reserved $39.7 million and $36.0 million , respectively, for warranty claims expected to be paid out. Certain of these warranty and other related claims involve matters in dispute that ultimately are resolved by negotiations, arbitration or litigation. See Note 14, "Product Warranties," for further information. It is reasonably possible that the estimates for environmental remediation, product liability and product warranty costs may change based upon new information that may arise or matters that are beyond the scope of the Company's historical experience. Presently, there are no reliable methods to estimate the amount of any such potential changes. Other Contingencies On December 13, 2018, a purported securities class action lawsuit was filed in the U.S. District Court for the Middle District of Florida against the Company and certain of its current and former executive officers. The lawsuit is captioned Schlimm v. Welbilt, Inc., et al. , and alleges that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 promulgated thereunder, by making material misstatements or omissions in certain of the Company's periodic reports filed with the SEC relating to, among other things, the Company's business operations and the effectiveness of the Company’s internal control over financial reporting. The lawsuit seeks an unspecified amount of damages and an award of attorney’s fees, in addition to other relief. On January 24, 2019, a second purported securities class action lawsuit, captioned Borel-Donohue v. Welbilt, Inc., et. al. , was filed in the same court, containing similar claims and allegations, and seeking similar relief, as the Schlimm lawsuit. On February 12, 2019, the plaintiff voluntarily dismissed the Borel-Donohue lawsuit. The Company believes the Schlimm lawsuit is without merit and intends to defend against it vigorously. However, litigation is inherently uncertain, and the Company is unable to predict the outcome of this matter and is unable to estimate the range of loss, if any, that could result from an unfavorable outcome. The Company has voluntarily disclosed to U.S. Customs & Border Protection certain errors in the declared quantity and classification of specific imported products and other potential violations of U.S. customs regulations. Based on currently known information, it is probable that we may be assessed retroactive customs duties and related fees on previous imports but we are unable to reasonably estimate the range of loss that may result and unable to determine if any potential liability would be material to the Company’s consolidated financial position, results of operations or cash flows. The Company is also subject to other litigation, government inquiries, audits, commercial disputes, claims and other legal proceedings arising in the ordinary course of business. From time to time, we may be subject to audits by tax, export, customs and other governmental authorities or incur routine and non-routine fees, expenses or penalties relating to compliance with complex laws and regulations impacting our business. The Company records accruals for legal and other matters which are both probable and reasonably estimable and for related legal costs as incurred. The Company believes that it has adequately accrued for such matters as appropriate. In the opinion of management, the ultimate resolution of such legal and other matters is not expected to have, individually or in the aggregate, a material adverse effect on the Company's financial condition, results of operations or cash flows. |
Product Warranties
Product Warranties | 12 Months Ended |
Dec. 31, 2018 | |
Guarantees [Abstract] | |
Product Warranties | 14. Product Warranties In the normal course of business, the Company provides its customers product warranties covering workmanship, and in some cases materials, on products manufactured by the Company. Such product warranties generally provide that products will be free from defects for periods ranging from 12 months to 60 months with certain equipment having longer-term warranties. If a product fails to comply with the Company’s warranty, the Company may be obligated, at its expense, to correct any defect by repairing or replacing such defective products. The Company provides for an estimate of costs that may be incurred under its warranty at the time product revenue is recognized. These costs primarily include labor and materials, as necessary, associated with repair or replacement. The primary factors that affect its warranty liability include the number of units shipped and historical and anticipated warranty claims. As these factors are impacted by actual experience and future expectations, the Company assesses the adequacy of its recorded warranty liability and adjusts the amounts as necessary. Below is a table summarizing the product warranty activity for the years ended December 31, 2018 and 2017 : (in millions) 2018 2017 Balance at the beginning of the period $ 36.0 $ 36.3 Accruals for warranties issued 39.5 33.3 Settlements made (in cash or in kind) (35.1 ) (34.4 ) Currency translation impact (0.7 ) 0.8 Balance at the end of the period (1) $ 39.7 $ 36.0 (1) Long-term warranty liabilities are included in "Other long-term liabilities" and totaled $11.8 million and $11.9 million at December 31, 2018 and 2017 , respectively. The Company also sells extended warranties, which are recorded as deferred revenue and are amortized to "Net sales" on a straight-line basis over a period equal to that of the warranty period. The short-term portion of deferred revenue on warranties included in "Accrued expenses and other liabilities" in the consolidated balance sheets at December 31, 2018 and 2017 was $2.2 million and $3.1 million , respectively. The long-term portion of deferred revenue on warranties included in "Other long-term liabilities" in the consolidated balance sheets at December 31, 2018 and 2017 was $3.8 million and $3.6 million , respectively. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | 15. Employee Benefit Plans The Company maintains several different retirement plans for its operations in the Americas, EMEA and APAC. The current plans are based largely upon benefit plans that MTW maintained prior to the Spin-Off. The Company has established a Retirement Plan Committee to manage the operations and administration of all retirement plans and related trusts. Defined Benefit Plans Prior to December 31, 2015, MTW maintained two defined benefit pension plans for its eligible employees and retirees: (1) The Manitowoc Company, Inc. Pension Plan (the "MTW Pension Plan"); and (2) The Manitowoc Company, Inc. Supplemental Executive Retirement Plan (the "MTW SERP"). The MTW Pension Plan and the MTW SERP (together, the "MTW DB Plans") covered eligible employees of MTW, including MTW's crane business and foodservice business. The MTW Pension Plan is frozen to new participants and future benefit accruals. Effective January 1, 2016, a portion of each MTW DB Plan was spun off to create separate plans for MTW's foodservice business, for which "MFS" was substituted with "Welbilt" in the following plans due to the Name Change: (1) the Welbilt Pension Plan and (2) the Welbilt Supplemental Executive Retirement Plan (the "Welbilt SERP"). The Welbilt Pension Plan and the Welbilt SERP (together, the "Welbilt DB Plans") were initially sponsored by Manitowoc FSG U.S. Holding, LLC (name of the entity changed to Welbilt FSG U.S. Holdings, LLC effective April 19, 2017). The Company assumed sponsorship of the Welbilt DB Pension Plans on March 4, 2016. The Company no longer participates in the MTW DB Plans. The Welbilt DB Plans are substantially similar to the former MTW DB Plans. When comparing the current financial information to financial statements for prior years, it is important to distinguish between: (1) the defined benefit plans that also covered employees of MTW and other MTW subsidiaries (the "Shared Plans"); and (2) the defined benefit plans which are sponsored directly by the Company or its subsidiaries and offered only to the Company's employees or retirees (the "Direct Plans"). The Company accounted for the Shared Plans for the purpose of the consolidated financial statements as a multiemployer plan. Accordingly, the Company did not record an asset or liability to recognize the funded status of the Shared Plans. However, the costs associated with these Shared Plans of $0.9 million for the year ended December 31, 2016 , is reflected in the consolidated statements of operations. This expense reflects an approximation of the Company's portion of the costs of the Shared Plans, including costs attributable to MTW corporate employees, which have been allocated to the Company based on a methodology deemed reasonable by management. Because the Company no longer participated in the MTW DB Plans as of March 4, 2016, no such costs were recorded in the years ended December 31, 2018 and 2017 . During the year ended December 31, 2016 , Welbilt assumed certain pension obligations of $55.6 million and related plan assets of $34.1 million , and certain postretirement health obligations of $6.8 million , to newly-created single employer plans for the Company's employees and certain other Company-sponsored pension plans, as described above. This net transfer of approximately $28.3 million was treated as a non-cash transaction between the Company and MTW. The Company also assumed after-tax deferred gains of $6.1 million related to these plans, which were recorded in "Accumulated other comprehensive loss." In connection with the Crem Acquisition, the Company assumed two defined benefit pension plans with a combined projected benefit obligation of $0.6 million and plan assets of $0.2 million at the acquisition date. The balances and activity of these plans are included within the Direct Plans below. Direct Plans The Direct Plans are accounted for as defined benefit plans. Accordingly, the funded and unfunded position of each Direct Plan is recorded in the consolidated balance sheets and the income and expenses are recorded in the consolidated statements of operations. Actuarial gains and losses that have not yet been recognized through income are recorded in "Accumulated other comprehensive loss" until they are amortized as a component of net periodic benefit cost. The determination of benefit obligations and the recognition of expenses related to the Direct Plans are dependent on various assumptions. The major assumptions primarily relate to discount rates and long-term expected rates of return on plan assets. Management develops each assumption using relevant Company experience in conjunction with market-related data for each individual country in which such plans exist. The components of periodic benefit costs for the Direct Plans for the years ended December 31, 2018 , 2017 and 2016 are as follows: Pension Plans Postretirement Health (in millions, except percentage data) 2018 2017 2016 2018 2017 2016 Service cost - benefits earned during the year $ 0.1 $ — $ 0.2 $ — $ — $ — Interest cost of projected benefit obligation 5.2 5.4 8.3 0.3 0.3 0.4 Expected return on assets (5.8 ) (6.2 ) (6.2 ) — — — Amortization of actuarial net loss 2.2 2.0 2.5 0.2 — — Settlement loss recognized 2.4 — — — — — Net periodic benefit cost $ 4.1 $ 1.2 $ 4.8 $ 0.5 $ 0.3 $ 0.4 Weighted average assumptions: Discount rate 2.8 % 3.1 % 3.9 % 3.2 % 3.5 % 3.9 % Expected return on plan assets 3.2 % 3.6 % 3.7 % N/A N/A N/A Rate of compensation increase 2.0 % — % 4.0 % 1.5 % 1.5 % 1.5 % Gains and losses in excess of 10% of the greater of the benefit obligation and the market-related value of assets are amortized over the average remaining service period of active participants. To develop the expected long-term rate of return on assets assumptions, the Company considered the historical returns and future expectations for returns in each asset class, as well as targeted asset allocation percentages within the pension portfolio. In October 2018, the Company completed the purchase of a group annuity contract using assets from the U.S. pension plan. Under the group annuity contract, accrued pension obligations of $7.9 million for certain participants that were receiving payments from the U.S. pension plan were transferred to an insurer. This agreement was an irrevocable action that unconditionally transferred the legal obligation to provide these payments to the insurer, as well as the risks attributable to that obligation. As a result, the Company recorded a non-cash settlement loss of $2.4 million , related to the accelerated recognition of unamortized losses in the fourth quarter of 2018, which was recorded in " Other expense — net " in the consolidated statement of operations. The following is a reconciliation of the changes in benefit obligation, the changes in plan assets and the funded status of the Direct Plans as of December 31, 2018 and 2017 : Pension Plans Postretirement Health (in millions, except percentage data) 2018 2017 2018 2017 Change in Benefit Obligations Benefit obligation, beginning of year $ 216.8 $ 203.9 $ 10.1 $ 9.0 Service cost 0.1 — — — Interest cost 5.2 5.4 0.3 0.3 Participant contributions — — 0.7 0.6 Plan settlements (7.9 ) — — — Plan amendments (0.6 ) — (1.5 ) — Acquisition 0.6 — — — Actuarial (gain)/loss (9.0 ) 7.7 0.5 1.7 Currency translation adjustment (7.4 ) 13.8 (0.1 ) 0.1 Benefits paid (11.3 ) (14.0 ) (2.7 ) (1.6 ) Benefit obligation, end of year $ 186.5 $ 216.8 $ 7.3 $ 10.1 Change in Plan Assets Fair value of plan assets, beginning of year $ 176.7 $ 163.8 $ — $ — Actual return on plan assets (6.8 ) 9.2 — — Employer contributions 8.4 5.4 2.0 1.0 Participant contributions — — 0.7 0.6 Plan settlements (7.9 ) — — — Currency translation adjustment (6.7 ) 12.3 — — Acquisition 0.2 — — — Benefits paid (11.3 ) (14.0 ) (2.7 ) (1.6 ) Fair value of plan assets, end of year $ 152.6 $ 176.7 $ — $ — Unfunded status (1) $ (33.9 ) $ (40.1 ) $ (7.3 ) $ (10.1 ) Weighted-Average Assumptions Discount rate 3.3 % 2.8 % 3.8 % 3.2 % Rate of compensation increase 2.0 % — % 3.0 % 1.5 % (1) As of December 31, 2018 and 2017 , the short-term portion of the pension obligation totaled $0.9 million and $0.7 million , respectively and postretirement health and other benefit obligation totaled $1.1 million , and $1.2 million , respectively. These short-term obligations are included in "Accrued expenses and other liabilities." The primary driver of the actuarial gain in 2018 within the change in the benefit obligation for pension plans is the increase in the discount rate assumption partially offset by the increase in inflation rate assumption and updated census data. Amounts recognized in AOCI as of December 31, 2018 and 2017 , consist of the following: Pension Plans Postretirement (in millions) 2018 2017 2018 2017 Net actuarial loss $ (41.8 ) $ (44.3 ) $ (2.5 ) $ (2.2 ) Prior service credit 0.6 — 1.5 — Total amount recognized $ (41.2 ) $ (44.3 ) $ (1.0 ) $ (2.2 ) For measurement purposes, a 6.1% annual rate of increase in the per capita cost of covered health care benefits was assumed for 2018 . The rate was assumed to decrease gradually to 4.5% for 2037 and remain at that level thereafter. Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. The following table summarizes the sensitivity of the Company's December 31, 2018 retirement obligations and 2018 retirement benefit costs of its plans to changes in the key assumptions used to determine those results (in millions): Change in assumption: Estimated increase Estimated increase Estimated increase Estimated increase 0.5% increase in discount rate $ (0.5 ) $ (13.3 ) $ — $ (0.2 ) 0.5% decrease in discount rate 0.6 14.5 — 0.2 0.5% increase in long-term return on assets (0.7 ) N/A N/A N/A 0.5% decrease in long-term return on assets 0.7 N/A N/A N/A The weighted-average asset allocations of the pension plans at December 31, 2018 and 2017 , by asset category are as follows: 2018 2017 Equity 14.2 % 17.6 % Debt securities 32.1 % 34.6 % Other 53.7 % 47.8 % 100.0 % 100.0 % Investment Strategy The overall objective of the Company's pension assets is to earn a rate of return over time to satisfy the benefit obligations of the pension plans and to maintain sufficient liquidity to pay benefits and address other cash requirements of the pension fund. Specific investment objectives for the Company's long-term investment strategy include reducing the volatility of pension assets relative to pension liabilities, achieving a competitive, total investment return, achieving diversification between and within asset classes and managing other risks. Investment objectives for each asset class are determined based on specific risks and investment opportunities identified. The Company reviews its long-term, strategic asset allocations annually. The Company uses various analytics to determine the optimal asset mix and consider plan liability characteristics, liquidity characteristics, funding requirements, expected rates of return and the distribution of returns. The Company identifies investment benchmarks for the asset classes in the strategic asset allocation that are market-based and investable where possible. Actual allocations to each asset class vary from target allocations due to periodic investment strategy changes, market value fluctuations, the length of time it takes to fully implement investment allocation positions and the timing of benefit payments and contributions. The asset allocation is monitored and rebalanced on a monthly basis. The actual allocations for the pension assets at December 31, 2018 , and target allocations by asset class, are as follows: Target Allocations Weighted Average Asset Allocations Equity securities 18.5 % 14.2 % Debt securities 38.9 % 32.1 % Other 42.6 % 53.7 % Risk Management In managing the plan assets, the Company reviews and manages risk associated with funded status risk, interest rate risk, market risk, counterparty risk, liquidity risk and operational risk. Liability management and asset class diversification are central to the Company's risk management approach and are integral to the overall investment strategy. Further, asset classes are constructed to achieve diversification by investment strategy, by investment manager, by industry or sector and by holding. Investment manager guidelines for publicly traded assets are specified and are monitored regularly. Fair Value Measurements The following table presents the Company's plan assets using the fair value hierarchy as of December 31, 2018 and 2017 . The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Level 1 refers to fair values determined based on quoted prices in active markets for identical assets. Level 2 refers to fair values estimated using significant other observable inputs, and Level 3 includes fair values estimated using significant non-observable inputs. December 31, 2018 Assets (in millions) Quoted Prices in Significant Other Unobservable Total Cash and cash equivalents $ 6.1 $ — $ — $ 6.1 Insurance group annuity contracts — — 65.6 65.6 Common/collective trust funds — Government, corporate and other non-government debt — 49.0 — 49.0 Common/collective trust funds — Corporate equity — 21.7 — 21.7 Common/collective trust funds — Customized strategy — 10.2 — 10.2 Total $ 6.1 $ 80.9 $ 65.6 $ 152.6 December 31, 2017 Assets (in millions) Quoted Prices in Significant Other Unobservable Total Cash and cash equivalents $ 2.4 $ — $ — $ 2.4 Insurance group annuity contracts — — 74.6 74.6 Common/collective trust funds — Government, corporate and other non-government debt — 63.2 — 63.2 Common/collective trust funds — Corporate equity — 30.4 — 30.4 Common/collective trust funds — Customized strategy — 6.1 — 6.1 Total $ 2.4 $ 99.7 $ 74.6 $ 176.7 Cash equivalents and other short-term investments, which are used to pay benefits, are primarily held in registered money market funds which are valued using a market approach based on the quoted market prices of identical instruments. Other cash equivalent and short-term investments are valued daily by the fund using a market approach with inputs that include quoted market prices for similar instruments. Insurance group annuity contracts are valued at the present value of the future benefit payments owed by the insurance company to the plans’ participants. Common/collective funds are typically common or collective trusts valued at their net asset values that are calculated by the investment manager or sponsor of the fund and have daily or monthly liquidity. A reconciliation of the fair value measurements of plan assets using significant unobservable inputs (Level 3) from the beginning of the year to the end of the year is as follows: Insurance Contracts (in millions) 2018 2017 Beginning Balance $ 74.6 $ 72.2 Acquisition 0.2 — Contributions 0.1 — Actual return on assets (1.2 ) — Benefit payments (4.6 ) (4.6 ) Foreign currency impact (3.5 ) 7.0 Ending Balance $ 65.6 $ 74.6 The expected 2019 contributions for pension plans are as follows: the minimum contribution for 2019 is $8.3 million with no planned discretionary or non-cash contributions. Expected company paid claims for the postretirement health and life insurance plans are $1.1 million for 2019 . Projected benefit payments from the plans as of December 31, 2018 are estimated as follows: (in millions) Pension Plans Postretirement 2019 $ 16.0 $ 1.1 2020 11.1 1.0 2021 11.4 1.0 2022 11.7 1.1 2023 12.2 0.9 2024-2028 65.9 2.4 The fair value of plan assets for which the accumulated benefit obligation is in excess of the plan assets as of December 31, 2018 and 2017 is as follows: Pension Plans (in millions) 2018 2017 Projected benefit obligation $ 186.5 $ 216.8 Accumulated benefit obligation 186.5 216.8 Fair value of plan assets 152.6 176.7 The measurement date for all plans is December 31, 2018 . The Company, through its Lincoln Foodservice operation, participated in a multiemployer defined benefit pension plan under a collective bargaining agreement that covered certain of its union-represented employees. In 2013, with the finalization of the reorganization and plant restructuring that affected the Lincoln Foodservice operation, the Company was deemed to have effectively withdrawn its participation in the multiemployer defined benefit pension plan. This withdrawal obligation is part of the restructuring accrual in the consolidated balance sheets as described in Note 16, "Restructuring." The withdrawal obligation totaled $17.5 million , of which $11.3 million and $12.2 million were outstanding as of December 31, 2018 and 2017 , respectively, and is payable in quarterly installments of $0.5 million through April 2026, which includes both principal and accrued interest. As the Company was deemed to have effectively withdrawn its participation in this plan in 2013, no further contributions were made to the plan. Defined Contribution Plans Prior to December 31, 2015, MTW maintained three defined contribution retirement plans for its eligible employees and retirees: (1) The Manitowoc Company, Inc. 401(k) Retirement Plan (the "MTW 401(k) Retirement Plan"); (2) The Manitowoc Company, Inc. Retirement Savings Plan (the "MTW Retirement Savings Plan"); and (3) The Manitowoc Company, Inc. Deferred Compensation Plan (the "MTW Deferred Compensation Plan"). The MTW 401(k) Retirement Plan, the MTW Retirement Savings Plan and the MTW Deferred Compensation Plan (together, the "MTW DC Plans") covered eligible employees of MTW, including MTW's crane business and foodservice business. Effective January 1, 2016, a portion of each MTW DC Plan was spun off to create separate plans for MTW's Foodservice business: for which "MFS" was substituted with "Welbilt" in the following plans due to the Name Change (1) the Manitowoc Foodservice 401(k) Retirement Plan (the "Welbilt 401(k) Retirement Plan"); (2) the Welbilt Retirement Savings Plan, and (3) the Welbilt Foodservice Deferred Compensation Plan (the "Welbilt Deferred Compensation Plan"). The Welbilt 401(k) Retirement Plan, the Welbilt Retirement Savings Plan and the Welbilt Deferred Compensation Plan (together, the "Welbilt DC Plans") were initially sponsored by Manitowoc FSG U.S. Holding, LLC. Welbilt assumed sponsorship of the Welbilt DC Pension Plans on March 4, 2016. Welbilt no longer participates in the MTW DC Plans. The Welbilt DC Plans are substantially similar to the former MTW DC Plans. Welbilt 401(k) Retirement Plan The Welbilt 401(k) Retirement Plan is a tax-qualified retirement plan that is available to substantially all non-union U.S. employees of Welbilt, its subsidiaries and related entities. Welbilt Retirement Savings Plan The Welbilt Retirement Savings Plan is a tax-qualified retirement plan that is available to certain collectively bargained U.S. employees of Welbilt, its subsidiaries and related entities. For both the Welbilt 401(k) Retirement Plan and the Welbilt Retirement Savings Plan, the Company's portion of total costs incurred under these plans was $4.0 million , $2.8 million , and $2.0 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Welbilt Deferred Compensation Plan The Welbilt Deferred Compensation Plan is an unfunded, non-tax-qualified supplemental deferred compensation plan for highly compensated and key management employees and for directors that allows participants to defer a portion of their compensation. The Company utilizes a rabbi trust to hold assets intended to satisfy the Company's obligations under the deferred compensation plan. The trust restricts the Company's use and access to the assets held but is subject to the claims of the Company's general creditors. As of December 31, 2018 , the fair value of the investments held in trust was $4.2 million , Company stock held in trust was $0.3 million , at cost, and the related liability was $4.5 million . As of December 31, 2017 , the fair value of the investments held in trust was $5.1 million, Company stock held in trust was $0.2 million at cost, and the related liability was $5.3 million . |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | 16. Restructuring The Company periodically takes action to improve operating efficiencies, typically in connection with recognizing cost synergies and rationalizing the cost structure of the Company. The Company's footprint and headcount reductions and organizational integration actions relate to discrete, unique restructuring events, primarily reflected in approved plans for reductions in force ("RIF"). The following is a rollforward of all restructuring activities related to the Company for the year ended December 31, 2018 and 2017 : (in millions) 2018 2017 Balance at January 1 $ 16.1 $ 14.4 Restructuring charges 6.0 10.8 Use of reserve (8.7 ) (6.2 ) Non-cash adjustment (1) (0.3 ) (2.9 ) Balance at December 31 $ 13.1 $ 16.1 ( 1) This non-cash adjustment represents the non-cash stock-based compensation expense recognized during the years ended December 31, 2018 and 2017 resulting from the accelerated vesting of certain stock awards in connection with restructuring actions. As of December 31, 2018 and 2017 , the short-term portion of the liability of $3.0 million and $5.0 million , respectively, was reflected in "Accrued expenses and other liabilities" in the consolidated balance sheets. The long-term portion of the liability of $10.1 million and $11.1 million as of December 31, 2018 and 2017 , was reflected in "Other long-term liabilities" in the consolidated balance sheets and relates to the long-term portion of the pension withdrawal obligation incurred in connection with the reorganization and plant restructuring of the Company's former Lincoln Foodservice operations. During the fourth quarter of 2015 and through the first half of 2016, the Company relocated its manufacturing, warehousing and distribution operations conducted at its Cleveland, Ohio plant and subsequently closed this facility. In April 2017, the Company sold the related building for a net sales price of $2.2 million and recognized a loss on the sale of the building of $0.4 million , which is included in "(Gain) loss from impairment or disposal of assets — net" in the consolidated statements of operations for the year ended December 31, 2017 . These actions relate entirely to the Company's Americas reportable segment. In September 2016, the Company closed the Singapore plant and transferred the manufacturing to its plants in Prachinburi, Thailand and Foshan, China. In July 2017, the Company sold the related building for a net sales price of $6.2 million and recognized a $3.8 million gain from the sale of the building, which is included in "(Gain) loss from impairment or disposal of assets — net" in the consolidated statements of operations for the year ended December 31, 2017 . In the first quarter of 2017, the Company ceased the manufacturing at its Sellersburg, Indiana plant and products manufactured were transferred to its plants in Tijuana and Monterrey, Mexico. The Company subsequently closed the Sellersburg plant and in June 2017, the Company sold the related building for a net sales price of $4.8 million and recognized a gain on the sale of the building of $1.1 million , which is included in "(Gain) loss from impairment or disposal of assets — net" in the consolidated statements of operations for the year ended December 31, 2017 . The Company incurred total restructuring costs associated with the aforementioned plant closures of approximately $3.8 million . Of this amount, $0.8 million and $1.7 million were recorded during the years ended December 31, 2017 and 2016 , respectively. These charges are presented in "Restructuring expense" in the consolidated statements of operations. Effective January 2, 2017, Maurice Jones, the Company's former Senior Vice President, General Counsel and Secretary, retired from the Company and pursuant to the terms of his employment agreement, the Company was required to provide severance and other related benefits over the subsequent 18 -month period. The Company incurred a total one-time cost of $2.2 million , including $1.1 million of additional stock-based compensation expense resulting from the accelerated vesting of certain stock options and restricted stock units, that was recorded during the year ended December 31, 2017 in "Restructuring expense" in the consolidated statement of operations. Mr. Jones also receives the amount of vested benefits of $2.5 million plus interest at the rate of 9.0% from the Company’s Supplemental Executive Retirement Plan ("SERP") that is being paid over five annual installments. Effective May 5, 2017, John Stewart, the Company's former Senior Vice President and Chief Financial Officer, retired from the Company. Pursuant to the terms of his employment agreement, the Company was required to provide severance and other related benefits over the subsequent 12-month period. The Company incurred a total one-time cost of $2.5 million , including $1.5 million of additional stock-based compensation resulting from the accelerated vesting of certain stock options and restricted stock units, during the year ended December 31, 2017 in "Restructuring expense". In August 2017, the Company completed the August 2017 RIF to optimize and enhance operational efficiency primarily in the Americas region. As a result, the Company incurred severance and related costs of $3.6 million , including $0.3 million of additional stock-based compensation expense resulting from the accelerated vesting of certain stock options, restricted stock units and performance share units which are included in "Restructuring expense" in the consolidated statement of operations for the year ended December 31, 2017 . In December 2017, the Company completed the December 2017 RIF to optimize and enhance operational efficiency in the EMEA region. The Company incurred severance and related costs related to the December 2017 RIF of $1.9 million , of which $1.7 million was recognized in 2017 and $0.2 million was recognized in 2018 in "Restructuring expense" in the consolidated statements of operations. The Company completed a limited management restructuring within its EMEA region in March 2018. In connection with this action, the Company incurred severance and related costs of $0.6 million , of which $0.4 million was recognized during the first quarter, $0.1 million in the third quarter and $0.1 million in the fourth quarter of 2018 in "Restructuring expense" in the consolidated statement of operations. During the second quarter of 2018, the Company completed a RIF in its EMEA and APAC regions as a part of its continued efforts to optimize and enhance operational efficiency. As a result, the Company incurred severance and related costs of $1.4 million , which were recognized during the second quarter of 2018 in "Restructuring expense" in the consolidated statement of operations. Effective August 31, 2018, Hubertus M. Mühlhäuser, the Company's President and Chief Executive Officer, separated from the Company. In connection with the separation, the Company incurred separation charges of $0.8 million which were recorded in the third quarter of 2018 in "Restructuring expense" in the consolidated statement of operations. Additionally, approximately $3.7 million of expenses were reversed during the third quarter of 2018 from the forfeiture of unvested stock awards and accrued incentive compensation which were included in "Selling, general and administrative expenses" in the consolidated statement of operations. During the third quarter of 2018, the Company completed a RIF in its Americas region and a limited management restructuring within its corporate division. These actions resulted in the Company incurring severance and related costs of $3.0 million including $0.3 million of additional share-based compensation resulting from the accelerated vesting of certain stock compensation awards. Of the total $3.0 million , $2.7 million was recognized during the three months ended September 30, 2018 in "Restructuring expense" and the remaining $0.3 million was recognized in the fourth quarter of 2018. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 17. Accumulated Other Comprehensive Loss The components of "Accumulated other comprehensive loss" as of December 31, 2018 and 2017 are as follows: (in millions) 2018 2017 Foreign currency translation, net of income tax benefit of $2.1 million and $2.8 million at December 31, 2018 and 2017, respectively $ (6.5 ) $ 4.4 Derivative instrument fair market value, net of income tax expense of $1.3 million and $1.8 million at December 31, 2018 and 2017, respectively 0.8 3.6 Employee pension and postretirement benefit adjustments, net of income tax benefit of $6.3 million and $6.5 million at December 31, 2018 and 2017, respectively (35.9 ) (40.0 ) $ (41.6 ) $ (32.0 ) A summary of the changes in "Accumulated other comprehensive loss," net of tax, by component for the years ended December 31, 2018 , 2017 and 2016 are as follows: (in millions) Foreign Currency Translation (1) Gains and Losses on Cash Flow Hedges Pension & Postretirement Total Balance at December 31, 2015 $ (7.9 ) $ (1.8 ) $ (34.8 ) $ (44.5 ) Other comprehensive (loss) income before reclassifications (1.9 ) 2.1 (1.5 ) (1.3 ) Amounts reclassified out — 1.5 2.5 4.0 Tax effect — (1.0 ) (0.6 ) (1.6 ) Net current period other comprehensive (loss) income (1.9 ) 2.6 0.4 1.1 Balance at December 31, 2016 (9.8 ) 0.8 (34.4 ) (43.4 ) Other comprehensive income (loss) before reclassifications 11.4 9.0 (7.8 ) 12.6 Amounts reclassified out — (4.4 ) 2.0 (2.4 ) Tax effect 2.8 (1.8 ) 0.2 1.2 Net current period other comprehensive income (loss) 14.2 2.8 (5.6 ) 11.4 Balance at December 31, 2017 4.4 3.6 (40.0 ) (32.0 ) Other comprehensive loss before reclassifications (10.2 ) (1.7 ) (0.5 ) (12.4 ) Amounts reclassified out — (1.6 ) 4.8 3.2 Tax effect (0.7 ) 0.5 (0.2 ) (0.4 ) Net current period other comprehensive (loss) income (10.9 ) (2.8 ) 4.1 (9.6 ) Balance at December 31, 2018 $ (6.5 ) $ 0.8 $ (35.9 ) $ (41.6 ) (1) Income taxes are not provided for foreign translation relating to permanent investments in international subsidiaries, but tax effects within cumulative translation does include the impact of the net investment hedge transaction. Reclassification adjustments are made to avoid double counting in comprehensive income items that are also recorded as part of net income. A reconciliation of the reclassifications out of AOCI, net of tax, for the years ended December 31, 2018 , 2017 and 2016 are as follows: (in millions) 2018 2017 2016 Recognized Location Gains (losses) on cash flow hedges: Foreign currency exchange contracts $ (0.7 ) $ 3.3 $ — Cost of sales Commodity contracts 2.3 1.1 (1.5 ) Cost of sales Total before tax $ 1.6 $ 4.4 (1.5 ) Tax effect (0.3 ) (1.6 ) 0.6 Income Taxes Net of tax $ 1.3 $ 2.8 $ (0.9 ) Amortization of pension and postretirement items: Actuarial losses $ (2.4 ) $ (2.0 ) $ (2.5 ) Note 15, "Employee Benefit Plans" Pension settlement (2.4 ) — — Note 15, "Employee Benefit Plans" Total before tax $ (4.8 ) (2.0 ) $ (2.5 ) Tax effect 0.8 0.7 1.0 Income Taxes Net of tax $ (4.0 ) $ (1.3 ) $ (1.5 ) Total reclassifications for the period $ (2.7 ) $ 1.5 $ (2.4 ) |
Leases
Leases | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Leases | 18. Leases The Company leases various property, plant and equipment under non-cancelable operating leases, subject to certain provisions for renewal options and escalation clauses. Terms of the leases vary, but generally require the Company to pay property taxes, insurance premiums and maintenance costs associated with the leased property. Rental expense attributable to operating leases was $19.3 million , $17.1 million and $12.8 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Future minimum rental obligations under non-cancelable operating leases as of December 31, 2018 are payable as follows: (in millions) Year ending December 31: 2019 $ 15.1 2020 10.8 2021 6.7 2022 3.6 2023 1.5 Thereafter 5.9 $ 43.6 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 19. Stock-Based Compensation Prior to the Spin-Off, the Company's employees historically participated in MTW's stock-based compensation plans. Stock-based compensation expense relating to awards under MTW's stock-based compensation plans have been allocated to the Company based on the awards and terms previously granted to its employees. Until consummation of the Spin-Off, the Company continued to participate in MTW's stock-based compensation plans and record stock-based compensation expense based on the stock-based awards granted to the Company's employees. The Company adopted the 2016 Plan that permits the granting of stock options, restricted stock awards and units, performance share awards and units, and other types of stock-based and cash awards. In addition, the 2016 Plan allowed for the adjustment and replacement of certain awards of MTW common stock that were outstanding immediately prior to the Spin-Off through the issuance of replacement awards ("Replacement Awards"). As of December 31, 2018 , the maximum number of shares of common stock available for issuance pursuant to the 2016 Plan was 9.9 million . The Company recognizes stock-based compensation expense based on the fair value of the award on the grant date over the requisite service period and estimates forfeitures when calculating compensation expense, which is generally recognized in "Selling, general and administrative expenses" in the consolidated statements of operations. The Company recognized stock-based compensation expense as a result of the modification of certain MTW performance share units to pay out at target upon consummation of the Spin-Off, which is reflected in "Separation expense" in the consolidated statements of operations. Additionally, the Company recognized stock-based compensation for the accelerated vesting of certain equity awards in connection with various restructuring events. These events are described in Note 16, "Restructuring," and are reflected in "Restructuring expense" in the consolidated statements of operations. Stock-based compensation expense was recorded in the aforementioned financial statement line items for the three years ended December 31, 2018 , 2017 and 2016 as follows: Years Ended December 31, (in millions) 2018 2017 2016 Stock-based compensation expense: Selling, general and administrative expenses $ 6.6 $ 8.1 $ 4.7 Separation expense 0.1 0.1 1.6 Restructuring expense 0.3 2.9 — Total stock-based compensation expense $ 7.0 $ 11.1 $ 6.3 Stock-based compensation expense by award type was as follows for the periods indicated: Years Ended December 31, (in millions) 2018 2017 2016 Stock-based compensation expense: Stock options $ 1.5 $ 3.0 $ 1.2 Restricted stock awards and units 3.0 3.6 3.0 Performance share units 2.5 4.5 2.1 Total stock-based compensation expense $ 7.0 $ 11.1 $ 6.3 Stock Options Prior to the Spin-Off, any stock option granted to directors of MTW was exercisable immediately upon grant and expired ten years subsequent to the grant date. For all outstanding grants made to officers and employees prior to 2011, stock options became exercisable in 25% increments annually over a four -year period beginning on the second anniversary of the grant date and expire ten years subsequent to the grant date. Beginning in 2011 for grants to officers and employees, such stock options became exercisable in 25% increments annually over a four -year period beginning on the first anniversary of the grant date and expire ten years subsequent to the grant date. A summary of the Company's stock option activity for all holders of Welbilt stock options is as follows: (in millions, except weighted average exercise price and contractual life) Options Weighted Weighted Average Remaining Contractual Life (Years) Aggregate Options outstanding as of January 1, 2018 2.7 $ 15.95 4.9 $ 22.9 Granted 0.4 20.26 Exercised (0.5 ) 13.63 Forfeited (0.2 ) 17.69 Canceled (0.3 ) 30.00 Options outstanding as of December 31, 2018 (1) 2.1 $ 14.85 4.9 $ 1.5 Options vested or expected to vest as of December 31, 2018 (2) 2.0 $ 14.82 4.9 $ 1.5 Options exercisable as of December 31, 2018 1.6 $ 13.83 4.0 $ 1.5 (1) The outstanding stock options at December 31, 2018 have a range of exercise prices from $3.51 to $31.14 per share. (2) Number of options expected to vest is total unvested options less estimated forfeitures. The Company uses the Black-Scholes valuation model to value stock options. The Company used historical stock prices for MTW shares of common stock as the basis for its volatility assumptions prior to the Spin-Off. Subsequent to the Spin-Off, the volatility assumption is based on the reported data of a peer group of publicly traded companies for which historical information is available. The assumed risk-free rates were based on ten -year U.S. Treasury rates in effect at the time of grant. The expected option life represents the period of time that the options granted are expected to be outstanding and is based on historical experience. The assumptions used in the Black-Scholes option pricing model and the weighted average fair value of option awards granted were as follows for the periods indicated: Years Ended December 31, 2018 2017 2016 Expected life (years) 6.0 6.0 6.0 Risk-free interest rate 2.7 % 2.3 % 1.6 % Expected volatility 29.0 % 39.0 % 39.0 % Expected dividend yield — % — % — % The following represents stock option compensation information for the periods indicated: Years Ended December 31, (in millions, except weighted average grant date fair value per option granted) 2018 2017 2016 Weighted average grant date fair value per option granted $ 6.84 $ 7.86 $ 5.97 Fair value of options vested 1.7 3.0 2.8 Intrinsic value of options exercised 3.3 7.5 8.5 Excess tax benefit for tax deductions related to the exercise of stock options 0.8 1.2 — Cash received from option exercises, net of tax withholding 5.1 1.9 12.9 Tax benefits for stock-option compensation expense 0.4 0.7 0.5 As of December 31, 2018 , the Company had $1.7 million of unrecognized compensation expense before tax related to stock options, which will be recognized over a weighted average period of 2.6 years . Restricted Stock Awards and Units The fair value of restricted stock awards and units (collectively, "restricted stock") is based on the closing price of the Company’s common stock on the grant date. Beginning in 2017, restricted stock granted to employees generally vests over three years in an equal number of shares each year beginning on the first anniversary of the date of grant. For directors, restricted stock grants generally cliff vest after one year from the date of grant for grants in 2018 and two years from the date of grant for grants in 2017. In the case of both directors and employees, vesting assumes continued employment. Restricted stock granted in 2016 and 2015 for directors and employees generally cliff vest on either the second or third anniversary of the grant date, assuming continued employment. Additionally, restricted stock granted to the chairperson of the Board of Directors vests immediately. A summary of activity for all of the Company's restricted stock for the year ended December 31, 2018 is as follows: (in millions, except weighted average grant date fair value) Restricted Stock Weighted Average Grant Date Fair Value Unvested as of January 1, 2018 0.7 $ 17.14 Granted 0.1 18.15 Vested (0.4 ) 17.21 Unvested as of December 31, 2018 0.4 $ 17.48 The following represents restricted stock compensation information for the periods indicated: Years Ended December 31, (in millions, except weighted average grant date fair value per award granted) 2018 2017 2016 Weighted average grant date fair value per award granted $ 18.15 $ 21.39 $ 15.25 Fair value of awards vested 8.1 4.0 2.8 Tax benefits for restricted stock compensation expense 0.7 0.8 1.2 As of December 31, 2018 , the Company had $2.5 million of unrecognized compensation expense before tax related to restricted stock, which will be recognized over a weighted average period of 1.9 years . Performance Share Units The Company granted performance share units ("PSUs") that cliff vest after three years. The number of units that vest is determined for each grant based on the achievement of certain Company performance criteria as set forth in the award agreement and may range from zero to 200% of the target shares granted. The PSUs are settled in shares of common stock, with holders receiving one share of common stock for each PSU that vests. The fair value of PSUs is based on the closing price of the Company’s common stock on the grant date. Compensation expense for PSUs is recognized over the vesting period when it is probable the performance criteria will be achieved. As of December 31, 2018 , the following PSU programs were in progress: Award Date PSUs Outstanding (in millions) Expected Vesting Threshold 2017 Program 0.2 100.0 % 2018 Program 0.2 100.0 % Total PSUs outstanding 0.4 A summary of activity for all of the Company's performance share units for the year ended December 31, 2018 is as follows: (in millions, except weighted average grant date fair value) Performance Share Units Weighted Unvested as of January 1, 2018 0.5 $ 16.87 Granted 0.4 20.25 Vested (1) (0.2 ) 15.01 Forfeited (0.3 ) 17.86 Unvested as of December 31, 2018 0.4 $ 19.57 (1) The vested PSUs presented are based on the target amount of the award for the 2016 Program. In accordance with the terms of the underlying award agreements, the actual shares earned and distributed for the three -year performance period ended December 31, 2018 were 142.3% . The following represents PSU compensation information for the periods indicated: Years Ended December 31, (in millions, except weighted average grant date fair value per award granted) 2018 2017 2016 Weighted average grant date fair value per award granted $ 20.25 $ 18.70 $ 14.97 Fair value of awards vested 2.6 3.0 3.6 Tax benefits for PSU compensation expense 0.6 1.0 0.8 As of December 31, 2018 , the Company had $4.2 million of unrecognized compensation expense before tax related to PSUs, which will be recognized over a weighted average period of 1.7 years . |
Other Expense - Net
Other Expense - Net | 12 Months Ended |
Dec. 31, 2018 | |
Other Income and Expenses [Abstract] | |
Other Expense - Net | 20. Other Expense — Net The components of "Other expense — net" in the consolidated statements of operations for the years ended December 31, 2018 , 2017 and 2016 are summarized as follows: (in millions) 2018 2017 2016 Foreign currency transaction losses (1) $ 20.1 $ 6.5 $ 4.0 Amortization of debt issuance costs 5.5 5.5 4.7 Other 4.2 (1.4 ) 5.3 Other expense — net $ 29.8 $ 10.6 $ 14.0 (1) Foreign currency transaction losses include the loss of $10.0 million on the foreign currency hedge of the acquisition price of Crem incurred during the year ended December 31, 2018. Refer to Note 3, "Acquisitions and Divestitures," for additional discussion. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 21. Earnings Per Share The Company computes basic earnings per share based on the weighted average number of common shares that were outstanding during the period. Diluted earnings per share includes the dilutive effect of common stock equivalents consisting of stock options, restricted stock awards, restricted stock units and performance share units, using the treasury stock method. Performance share units, which are considered contingently issuable, are considered dilutive when the related performance criterion has been met. On March 4, 2016, MTW distributed 137.0 million shares of the Company's common stock to MTW shareholders, thereby completing the Spin-Off. Basic and diluted earnings per share and the average number of common shares outstanding for periods prior to the Spin-Off were retrospectively restated for the number of the Company's shares outstanding immediately following this transaction. The same number of shares were used to calculate basic and diluted earnings per share since no equity awards were outstanding prior to the Spin-Off. The following is a reconciliation of the weighted average shares outstanding used to compute basic and diluted earnings per share. Years Ended December 31, (in millions, except share and per share data) 2018 2017 2016 Net earnings $ 78.2 $ 132.9 $ 71.5 Weighted average shares outstanding — Basic 140,023,635 138,995,541 137,906,284 Effect of dilutive securities: Stock options 585,270 840,820 945,140 Unvested restricted stock 437,720 610,148 626,144 Unvested performance share units 342,160 260,583 236,552 Effect of dilutive securities 1,365,150 1,711,551 1,807,836 Weighted average shares outstanding — Diluted 141,388,785 140,707,092 139,714,120 Earnings per share — Basic $ 0.56 $ 0.96 $ 0.52 Earnings per share — Diluted $ 0.55 $ 0.94 $ 0.51 Dilutive securities outstanding not included in the computation of earnings per share because their effect was antidilutive for the years ended December 31, 2018 , 2017 and 2016 totaled 0.6 million , 0.8 million , and 3.6 million respectively. In addition, certain performance share units whose conditions were not met at the end of the reporting period have also been excluded from the computation of earnings per share. On March 3, 2016, prior to the completion of the Spin-Off, the Company paid a one-time cash dividend to MTW of $1,362.0 million . The Company did not declare or pay any other dividends to its stockholders during the years ended December 31, 2018 , 2017 and 2016 . |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Business Segments | 22. Business Segments The Company identifies its segments using the "management approach," which designates the internal organization that is used by management for making operating decisions and assessing performance as the source of the Company's reportable segments. Management organizes the business based on geography, and has designated the regions Americas, EMEA, and APAC as reportable segments. The accounting policies of the Company's reportable segments are the same as those described in the summary of accounting policies in Note 2, "Summary of Significant Accounting Policies and Basis of Presentation." The Company evaluates segment performance based on an "Adjusted Operating EBITDA" basis. Adjusted Operating EBITDA is defined as net earnings before interest, income taxes, other expense-net, depreciation and amortization expense plus certain other items such as gain or loss from impairment of disposal of assets, restructuring expense, separation expense, loss on modification or extinguishment of debt, acquisition-related transaction and integration costs and certain other items . In addition, certain corporate-level expenses are not allocated to the segments. These unallocated expenses include corporate overhead, stock-based compensation expense and certain other non-operating expenses. Adjusted Operating EBITDA is a non-GAAP measure, and the Company's presentation of Adjusted Operating EBITDA may not be comparable to similar measures used by other companies. Financial information relating to the Company's reportable segments as of and for the years ended December 31, 2018 , 2017 and 2016 respectively, is as follows: Years Ended December 31, (in millions, except percentage data) 2018 2017 2016 Net sales Americas $ 1,228.4 $ 1,166.8 $ 1,186.1 EMEA 385.1 296.5 287.6 APAC 229.1 190.2 190.9 Elimination of intersegment sales (252.5 ) (208.1 ) (208.5 ) Total net sales $ 1,590.1 $ 1,445.4 $ 1,456.1 Segment Adjusted Operating EBITDA: Americas $ 233.1 $ 240.7 $ 233.6 EMEA 78.4 55.2 44.3 APAC 31.2 22.7 24.7 Total Segment Adjusted Operating EBITDA 342.7 318.6 302.6 Corporate and unallocated (52.5 ) (41.7 ) (37.6 ) Amortization expense (37.0 ) (31.2 ) (31.2 ) Depreciation expense (18.0 ) (16.7 ) (17.3 ) Transaction costs (1) (7.1 ) — — Other items (2) (5.6 ) — — Separation expense (0.1 ) (1.6 ) (6.5 ) Restructuring expense (6.0 ) (10.8 ) (2.5 ) Gain (loss) from impairment or disposal of assets — net 0.4 4.0 (3.3 ) Earnings from operations 216.8 220.6 204.2 Interest expense (89.0 ) (86.9 ) (85.2 ) Interest expense on notes with MTW — net — — (0.1 ) Loss on modification or extinguishment of debt (9.0 ) (1.7 ) (2.7 ) Other expense — net (29.8 ) (10.6 ) (14.0 ) Earnings before income taxes $ 89.0 $ 121.4 $ 102.2 (1) Transaction costs are associated with the Crem Acquisition. These costs include $1.9 million related to inventory fair value purchase accounting adjustments recorded in "Cost of sales" for the year ended December 31, 2018 and $5.2 million of professional services and other direct acquisition and integration costs recorded in "Selling, general and administrative expenses" for the year ended December 31, 2018. (2) Other items are costs which are not representative of our operational performance. For the year ended December 31, 2018, these costs include a $3.7 million loss on misappropriation of funds within our newly acquired Crem business, $1.3 million of costs associated with the restatement of previously issued consolidated financial statements in our Annual Report on Form 10-K/A for the year ended December 31, 2017 and $0.6 million of costs associated with other professional services. Each of these costs has been recorded in "Selling, general and administrative expenses" for the year ended December 31, 2018. Adjusted Operating EBITDA % by segment (3) : Americas 19.0 % 20.6 % 19.7 % EMEA 20.4 % 18.6 % 15.4 % APAC 13.6 % 11.9 % 12.9 % (3) Adjusted Operating EBITDA % in the section above is calculated by dividing the Adjusted Operating EBITDA by net sales for each respective segment. Capital expenditures: Americas $ 13.7 $ 17.2 $ 12.4 EMEA 1.8 2.0 0.9 APAC 3.0 1.0 1.8 Corporate 2.9 0.5 0.9 Total capital expenditures $ 21.4 $ 20.7 $ 16.0 (in millions) 2018 2017 2016 Depreciation: Americas $ 12.1 $ 11.5 $ 12.1 EMEA 3.0 2.4 2.5 APAC 2.4 1.9 2.0 Corporate 0.5 0.9 0.7 Total depreciation $ 18.0 $ 16.7 $ 17.3 As of December 31, 2018 and December 31, 2017 , total assets by reportable segment are as follows: (in millions) 2018 2017 Total assets by segment: Americas $ 1,437.3 $ 1,445.6 EMEA 324.2 112.1 APAC 169.0 128.7 Corporate 144.5 154.0 Total assets $ 2,075.0 $ 1,840.4 Net sales by product class are categorized into commercial foodservice whole goods and aftermarket parts and service. Net sales by product class for the years ended December 31, 2018 , 2017 and 2016 are as follows: (in millions) 2018 2017 2016 Commercial foodservice whole goods $ 1,329.0 $ 1,173.3 $ 1,191.0 Aftermarket parts and support 261.1 272.1 265.1 Total net sales $ 1,590.1 $ 1,445.4 $ 1,456.1 Net sales information by geographic area for the years ended December 31, 2018 , 2017 and 2016 are as follows: (in millions) 2018 2017 2016 Net sales by geographic area (4) : United States $ 995.0 $ 945.6 $ 945.2 Other Americas 112.0 95.0 104.3 EMEA 300.7 239.2 242.0 APAC 182.4 165.6 164.6 Total net sales by geographic area $ 1,590.1 $ 1,445.4 $ 1,456.1 (4) Net sales in the section above are attributed to geographic regions based on location of customer. The Company sells primarily through distributors and dealers ("direct customers"), who ultimately sell to end customers. No single direct customer represented 10.0% or greater of the Company's net sales for the years ended December 31, 2018 , 2017 or 2016 . As of December 31, 2018 and December 31, 2017 , "Property, plant and equipment — net" information by geographic area is as follows: (in millions) 2018 2017 Property, plant and equipment — net by geographic area: United States $ 70.7 $ 68.1 Other Americas 21.0 19.5 EMEA 12.1 11.6 APAC 15.2 13.0 Total property, plant and equipment — net by geographic area $ 119.0 $ 112.2 |
Net Parent Company Investment a
Net Parent Company Investment and Related Parties | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Net Parent Company Investment and Related Parties | 23. Net Parent Company Investment and Related Parties Related Party Transactions and Cash Management Prior to the Spin-Off The Company does not enter into transactions with related parties to purchase and/or sell goods or services in the ordinary course of business. Transactions between the Company and MTW are reflected in the consolidated statements of cash flows as a financing activity in "Net transactions with MTW." Prior to the Spin-Off, the Company participated in MTW's centralized cash management program in which cash was swept each day and held in a centralized account at the corporate level. Net Parent Company Investment and Corporate Cost Allocations Prior to the Spin-Off Prior to the Spin-Off, MTW performed certain general and corporate functions on the Company's behalf. The combined financial statements for the periods prior to the Spin-Off include expense allocations for (1) corporate support functions that were provided on a centralized basis at a MTW enterprise level including, but not limited to, finance, audit, legal, information technology, human resources, tax, treasury, investor relations, and external reporting; (2) stock-based compensation; (3) employee compensation, pension and benefit costs; and (4) securitization financing costs. These expenses were allocated to Welbilt based on direct usage or direct identification where applicable, and where not applicable, such costs were allocated primarily based on net sales, headcount or based on existing allocation methods, specifically for those costs which were previously partially allocated to Welbilt or other methodologies deemed appropriate by management. These allocated costs are included within "Selling, general and administrative", "Interest expense", and "Net parent company investment" in the consolidated financial statements. Management believes the assumptions associated with allocating these costs are reasonable. Nevertheless, the combined financial statements may not include all of the actual expense that would have been incurred and may not represent the Company's results of operations, financial position or cash flows had it been a stand-alone company during the periods prior to the Spin-Off. Actual costs that would have been incurred if the Company had been a stand-alone company would depend on multiple factors, including organizational structure and strategic decisions made in various areas, including information technology and infrastructure. General corporate expenses allocated to the Company during the year ended December 31, 2016 was $5.2 million . The total effect of the settlement of these intercompany transactions is reflected as a financing activity in the consolidated statements of cash flows. However, the interest income and expense related to the notes with MTW is presented on a net basis in the consolidated statements of operations. Interest income on the notes with MTW for the year ended December 31, 2016 , is net of interest expense on the notes with MTW of $0.1 million . Guarantees Prior to the Spin-Off Certain of MTW's subsidiaries, which includes selected entities that are part of the Company, entered into guarantee agreements with MTW's lenders whereby these subsidiaries guaranteed the obligations under, and/or pledged their assets as collateral, with respect to such MTW debt. However, none of these Company subsidiaries were named as obligors in the debt agreements held in the name of MTW. For that reason, MTW did not historically allocate debt balances and/or charge out third-party debt-related expenses to the Company. Post Spin-Off Activity In connection with the Spin-Off, the Company entered into a series of agreements with MTW, which are intended to govern the relationship between the Company and MTW and to facilitate an orderly separation of the Company from MTW. These agreements include a Master Separation and Distribution Agreement ("Separation Agreement"), Transition Services Agreement ("TSA"), Employee Matters Agreement, Intellectual Property Matters Agreement and Tax Matters Agreement. In accordance with the Separation Agreement, at the time of the Spin-Off, MTW contributed its net investment in the Company and certain assets and liabilities in exchange for a $1,362.0 million cash distribution that was funded through the long-term debt incurred by the Company. In addition, separation related adjustments are included in "Additional paid-in capital (deficit)" in the consolidated statement of equity for the year ended December 31, 2016 consisting of net liabilities assumed by the Company related to the pension plans of $21.5 million , post-retirement medical obligations of $6.8 million and income taxes payable of $0.6 million . The Separation Agreement included provisions on the allocation of assets and liabilities between legal entities that were being split into a separate MTW and Welbilt legal entity as part of the Spin-Off. The Separation Agreement also included provisions on the split of joint administrative costs that were incurred post Spin-Off. Under the TSA, the Company and MTW provided each other certain specified services on a transitional basis, including, among others, payroll and other human resource services, information systems, insurance, legal, finance and other corporate services, as well as procurement and sourcing support. The charges for the transition services were generally intended to allow the providing company to fully recover the allocated direct costs of providing the services, plus all out-of-pocket costs and expenses, generally without profit except where required by local law. The Company had completed its use of these transition services by the end of the second quarter of 2017 and the TSA is no longer in effect. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | 24. Quarterly Financial Data (Unaudited) The following table presents financial data for each quarter in 2018 and 2017 : 2018 (in millions, except per share data) First Second Third Fourth Net sales $ 350.4 $ 420.7 $ 412.9 $ 406.1 Gross profit 126.2 149.3 153.1 140.6 Net earnings 12.4 12.0 26.8 27.0 Per share data Earnings per share — Basic $ 0.09 $ 0.09 $ 0.19 $ 0.19 Earnings per share — Diluted $ 0.09 $ 0.09 $ 0.19 $ 0.19 2017 (in millions, except per share data) First Second Third Fourth Net sales $ 328.0 $ 371.1 $ 380.4 $ 365.9 Gross profit 123.0 137.2 143.9 132.8 Net earnings 6.9 28.4 30.7 66.9 Per share data Earnings per share — Basic $ 0.05 $ 0.20 $ 0.22 $ 0.48 Earnings per share — Diluted $ 0.05 $ 0.20 $ 0.22 $ 0.47 As previously disclosed in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2018, the Company identified certain errors in previously issued unaudited financial statements. The Company has revised certain unaudited interim financial information for the three months ended March 31, 2018 and the three and six months ended June 30, 2018 to correct for the impact of such errors in those periods. The following tables set forth the effect these error corrections had on the Company’s unaudited consolidated statements of operations by financial statement line item. Three Months Ended March 31, 2018 (in millions) As Reported Adjustment As Revised Income taxes $ 0.3 $ 0.1 $ 0.4 Net earnings 12.5 (0.1 ) 12.4 Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 (in millions, except per share data) As Reported Adjustment As Revised As Reported Adjustment As Revised Income taxes $ 5.1 $ 0.1 $ 5.2 $ 5.4 $ 0.2 $ 5.6 Net earnings 12.1 (0.1 ) 12.0 24.6 (0.2 ) 24.4 Per share data Earnings per share — Basic $ 0.09 $ — $ 0.09 $ 0.18 $ (0.01 ) $ 0.17 Earnings per share — Diluted $ 0.09 $ — $ 0.09 $ 0.17 $ — $ 0.17 The following tables summarize the effects these corrections had on the Company's unaudited consolidated statements of comprehensive income by financial statement line item: Three Months Ended March 31, 2018 (in millions) As Reported Adjustment As Revised Net earnings $ 12.5 $ (0.1 ) $ 12.4 Foreign currency translation adjustments 0.1 (0.1 ) — Total other comprehensive income, net of tax 2.6 (0.1 ) 2.5 Comprehensive income 15.1 (0.2 ) 14.9 Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 (in millions) As Reported Adjustment As Revised As Reported Adjustment As Revised Net earnings $ 12.1 $ (0.1 ) $ 12.0 $ 24.6 $ (0.2 ) $ 24.4 Foreign currency translation adjustments (7.6 ) — (7.6 ) (7.5 ) (0.1 ) (7.6 ) Total other comprehensive loss, net of tax (8.3 ) — (8.3 ) (5.7 ) (0.1 ) (5.8 ) Comprehensive income 3.8 (0.1 ) 3.7 18.9 (0.3 ) 18.6 The following tables summarize the effects these corrections had on the Company's unaudited consolidated statements of equity by financial statement line item: (in millions) As Reported Adjustment As Revised Balance at December 31, 2017 Additional Paid-In Capital (Deficit) $ (63.3 ) $ 8.6 $ (54.7 ) Retained Earnings 204.5 (15.4 ) 189.1 Total Equity (Deficit) 110.4 (6.8 ) 103.6 Net earnings 12.5 (0.1 ) 12.4 Other comprehensive income 2.6 (0.1 ) 2.5 Balance at March 31, 2018 132.3 (7.0 ) 125.3 (in millions) As Reported Adjustment As Revised Balance at March 31, 2018 Additional Paid-In Capital (Deficit) $ (57.6 ) $ 8.6 $ (49.0 ) Retained Earnings 218.1 (15.5 ) 202.6 Accumulated Other Comprehensive Loss (29.4 ) (0.1 ) (29.5 ) Total Equity 132.3 (7.0 ) 125.3 Net earnings 12.1 (0.1 ) 12.0 Balance at June 30, 2018 140.8 (7.1 ) 133.7 (in millions) As Reported Adjustment As Revised Balance at June 30, 2018 Additional Paid-In Capital (Deficit) $ (52.9 ) $ 8.6 $ (44.3 ) Retained Earnings 230.2 (15.6 ) 214.6 Accumulated Other Comprehensive Loss (37.7 ) (0.1 ) (37.8 ) In addition, as disclosed in Note 2, "Summary of Significant Accounting Policies and Basis of Presentation," , in preparing its 2018 financial statements, the Company identified certain cash flow errors which also impacted the quarterly unaudited interim periods in 2018. Furthermore, the Company identified a calculation error related to its 2018 adoption of Accounting Standards Update 2016-15 ("ASU 2016-15"), "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments." This error misstated the amount of previously reported cash receipts on beneficial interest in sold receivables, resulting in a misstatement in both cash used in operating activities and cash provided by investing activities in each of the 2018 interim periods. The Company has revised its 2018 unaudited interim financial information to correct for these cash flow errors, as well as to correct for the cash flow errors identified in the third quarter of 2018. The following tables summarize the effects these error corrections had on the Company's unaudited consolidated statements of cash flows by financial statement line item: Three Months Ended March 31, 2018 (in millions) As Reported Adjustment As Revised Net earnings $ 12.5 $ (0.1 ) $ 12.4 Accounts receivable (134.8 ) 3.9 (130.9 ) Other current and long-term liabilities (30.1 ) (9.0 ) (39.1 ) Net cash used in operating activities (153.5 ) (5.2 ) (158.7 ) Cash receipts on beneficial interest in sold receivables 131.8 (3.9 ) 127.9 Purchase of short-term investment — (35.0 ) (35.0 ) Proceeds from maturity of short-term investment — 20.7 20.7 Other — 0.3 0.3 Net cash provided by (used in) investing activities 128.1 (17.9 ) 110.2 Effect of exchange rate changes on cash (4.4 ) 8.0 3.6 Net increase (decrease) in cash and cash equivalents and restricted cash 25.4 (15.1 ) 10.3 Balance at beginning of period 128.7 (19.9 ) 108.8 Balance at end of period 154.1 (35.0 ) 119.1 Supplemental disclosures of non-cash activities: Non-cash investing activity: Beneficial interest obtained in exchange for securitized receivables 169.6 (0.4 ) 169.2 Six Months Ended June 30, 2018 (in millions) As Reported Adjustment As Revised Net earnings $ 24.6 $ (0.2 ) $ 24.4 Accounts receivable (313.0 ) 20.9 (292.1 ) Other current and long-term liabilities (27.2 ) (3.7 ) (30.9 ) Net cash (used in) provided by operating activities (288.0 ) 17.0 (271.0 ) Cash receipts on beneficial interest in sold receivables 285.7 (20.9 ) 264.8 Purchase of short-term investment — (35.0 ) (35.0 ) Proceeds from maturity of short-term investment — 20.7 20.7 Other — 0.6 0.6 Net cash provided by (used in) investing activities 52.1 (34.6 ) 17.5 Effect of exchange rate changes on cash (5.2 ) 4.3 (0.9 ) Net (decrease) increase in cash and cash equivalents and restricted cash (24.5 ) (13.3 ) (37.8 ) Balance at beginning of period 128.7 (19.9 ) 108.8 Balance at end of period 104.2 (33.2 ) 71.0 Supplemental disclosures of non-cash activities: Non-cash investing activity: Beneficial interest obtained in exchange for securitized receivables 350.6 14.5 365.1 Nine Months Ended September 30, 2018 (in millions) As Reported Adjustment As Revised Accounts receivable $ (483.0 ) $ 43.4 $ (439.6 ) Other current and long-term liabilities (19.3 ) (2.1 ) (21.4 ) Net cash used in (provided by) operating activities (421.3 ) 41.3 (380.0 ) Cash receipts on beneficial interest in sold receivables 463.6 (43.4 ) 420.2 Purchase of short-term investment — (35.0 ) (35.0 ) Proceeds from maturity of short-term investment — 20.7 20.7 Other — 0.9 0.9 Net cash provided by (used in) investing activities 221.2 (56.8 ) 164.4 Effect of exchange rate changes on cash (4.1 ) 3.4 (0.7 ) Net (decrease) in cash and cash equivalents and restricted cash (35.0 ) (12.1 ) (47.1 ) Balance at beginning of period 128.7 (19.9 ) 108.8 Balance at end of period 93.7 (32.0 ) 61.7 Supplemental disclosures of non-cash activities: Non-cash investing activity: Beneficial interest obtained in exchange for securitized receivables 522.3 33.5 555.8 The Company will revise its unaudited financial statements for the three months ended March 31, 2018, three and six months ended June 30, 2018 and three and nine months ended September 30, 2018 in connection with the future filing of the Company's Form 10-Q for the three months ended March 31, 2019, the three and six months ended June 30, 2019 and the three and nine months ended September 30, 2019. |
Revision of Previously Issued C
Revision of Previously Issued Consolidated Financial Statements | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Revision of Previously Issued Consolidated Financial Statements | 25. Revision of Previously Issued Consolidated Financial Statements As disclosed in Note 2, "Summary of Significant Accounting Policies and Basis of Presentation," in preparing its 2018 financial statements, the Company identified certain errors in its previously issued consolidated financial statements as of and for the years ended December 31, 2017 and 2016 . The Company corrected these errors by revising its previously issued 2017 and 2016 financial statements in connection with this filing of the 2018 Annual Report on Form 10-K. This revision had no effect on the Company's consolidated statements of operations, comprehensive income or equity for any annual period previously presented. The following table summarizes the effects these corrections had on the Company's consolidated balance sheets by financial statement line item: December 31, 2017 (in millions) As Reported Adjustment As Revised Cash and cash equivalents $ 128.4 $ (19.9 ) $ 108.5 Short-term investment — 19.9 19.9 The following tables summarize the effects these corrections had on the Company's consolidated statements of cash flows by financial statement line item: Year Ended December 31, 2016 (in millions) As Reported Effect of Accounting Adoption (1)(2)(3) Adjustment As Revised Accounts receivable $ (8.3 ) $ (494.5 ) $ — $ (502.8 ) Other current and long-term liabilities 29.4 — (1.8 ) 27.6 Net cash provided by (used in) operating activities 124.3 (494.5 ) (1.8 ) (372.0 ) Cash receipts on beneficial interest in sold receivables — 494.3 — 494.3 Purchase of short-term investment — — (18.7 ) (18.7 ) Changes in restricted cash (6.0 ) 6.0 — — Net cash (used in) provided by investing activities (20.4 ) 500.3 (18.7 ) 461.2 Effect of exchange rate changes on cash (0.9 ) — 1.8 0.9 Net increase (decrease) in cash and cash equivalents and restricted cash 21.8 5.8 (18.7 ) 8.9 Balance at beginning of period 32.0 0.6 — 32.6 Balance at end of period 53.8 6.4 (18.7 ) 41.5 (1) As a result of the adoption of ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments," the Company reclassified consideration received for the beneficial interest obtained for transferring trade receivables in securitization transactions from operating activities to investing activities on the consolidated statements of cash flows for the year ended December 31, 2016. (2) As a result of the adoption of ASU 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash," beginning and ending cash and cash equivalents shown on the consolidated statements of cash flows for the year ended December 31, 2016 were increased for restricted cash and cash flows provided by investing activities were increased. (3) Amounts included in the Effect of Accounting Adoption presentation for this line item reflect a rounding adjustment. Year Ended December 31, 2017 (in millions) As Reported Effect of Accounting Adoption (1)(2)(3) Adjustment As Revised Accounts receivable 10.8 $ (552.0 ) $ — $ (541.2 ) Other current and long-term liabilities (4) 6.5 — (17.1 ) (10.6 ) Net cash used in (provided by) operating activities 137.8 (552.0 ) (17.1 ) (431.3 ) Cash receipts on beneficial interest in sold receivables — 552.1 — 552.1 Changes in restricted cash 6.2 (6.2 ) — — Other — — 0.9 0.9 Net cash (used in) provided by investing activities (3.4 ) 545.9 0.9 543.4 Effect of exchange rate changes on cash (8.1 ) — 15.0 6.9 Net increase (decrease) in cash and cash equivalents and restricted cash 74.6 (6.1 ) (1.2 ) 67.3 Balance at beginning of period 53.8 6.4 (18.7 ) 41.5 Balance at end of period 128.4 0.3 (19.9 ) 108.8 (1) As a result of the adoption of ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments," the Company reclassified consideration received for the beneficial interest obtained for transferring trade receivables in securitization transactions from operating activities to investing activities on the consolidated statements of cash flows for the year ended December 31, 2017. (2) As a result of the adoption of ASU 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash," beginning and ending cash and cash equivalents shown on the consolidated statements of cash flows for the year ended December 31, 2017 were increased for restricted cash and cash flows provided by investing activities were reduced. (3) Amounts included in the Effect of Accounting Adoption presentation for this line item reflect a rounding adjustment. (4) As Reported amount includes $0.2 million of a reclassification for the loss on divestitures and acquisitions. |
Subsidiary Guarantors of Senior
Subsidiary Guarantors of Senior Notes due 2024 | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Subsidiary Guarantors of Senior Notes due 2024 | 26. Subsidiary Guarantors and Senior Notes The following tables present consolidating financial information for (a) Welbilt; (b) the guarantors of the Senior Notes, which include substantially all of the domestic, 100% owned subsidiaries of Welbilt ("Guarantor Subsidiaries"); and (c) the wholly owned foreign subsidiaries of Welbilt, which do not guarantee the Senior Notes ("Non-Guarantor Subsidiaries"). The information includes elimination entries necessary to consolidate the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries. Investments in subsidiaries are accounted for using the equity method of accounting. The principal elimination entries eliminate investments in subsidiaries, equity and intercompany balances and transactions. Separate financial statements of the Guarantor Subsidiaries are not presented because the guarantors are fully and unconditionally, jointly and severally liable under the guarantees, except for normal and customary release provisions. As a result of the revision to correct errors on balance sheet and cash flow statements disclosed in Note 2, "Summary of Significant Accounting Policies and Basis of Presentation," and to reflect the effect for the adoption of ASU 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash," and ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments," the Company has revised its subsidiary guarantor consolidating cash flow statements for the years ended December 31, 2017 and 2016, and the consolidating balance sheet as of December 31, 2017. The impacts of the revision and the effect of the adoption of ASU 2016-18 and ASU 2016-15, predominantly impacted the Non-Guarantor Subsidiaries financial information as reflected in the tables below. WELBILT, INC. Consolidating Statement of Operations For the year ended December 31, 2018 (in millions) Parent Guarantor Non- Consolidating Adjustments Consolidated Net sales $ — $ 1,110.8 $ 937.8 $ (458.5 ) $ 1,590.1 Cost of sales 21.2 836.8 621.4 (458.5 ) 1,020.9 Gross profit (21.2 ) 274.0 316.4 — 569.2 Selling, general and administrative expenses 37.2 142.4 130.1 — 309.7 Amortization expense — 28.5 8.5 — 37.0 Separation expense 0.1 — — — 0.1 Restructuring expense 1.6 1.2 3.2 — 6.0 (Gain) loss from impairment or disposal of assets — net — (0.5 ) 0.1 — (0.4 ) (Loss) earnings from operations (60.1 ) 102.4 174.5 — 216.8 Interest expense 80.6 1.0 7.4 — 89.0 Loss on modification or extinguishment of debt 9.0 — — — 9.0 Other (income) expense — net (6.8 ) (29.6 ) 66.2 — 29.8 Equity in earnings (loss) of subsidiaries 191.1 71.9 — (263.0 ) — Earnings (loss) before income taxes 48.2 202.9 100.9 (263.0 ) 89.0 Income taxes (30.0 ) 11.8 29.0 10.8 Net earnings (loss) $ 78.2 $ 191.1 $ 71.9 $ (263.0 ) $ 78.2 Total other comprehensive (loss) income, net of tax (9.6 ) (19.5 ) (23.3 ) 42.8 (9.6 ) Comprehensive income (loss) $ 68.6 $ 171.6 $ 48.6 $ (220.2 ) $ 68.6 WELBILT, INC. Consolidating Statement of Operations For the year ended December 31, 2017 (in millions) Parent Guarantor Non- Consolidating Adjustments Consolidated Net sales $ — $ 1,042.3 $ 773.0 $ (369.9 ) $ 1,445.4 Cost of sales 3.8 750.6 524.0 (369.9 ) 908.5 Gross profit (3.8 ) 291.7 249.0 — 536.9 Selling, general and administrative expenses 35.9 143.7 97.1 — 276.7 Amortization expense — 28.4 2.8 — 31.2 Separation expense 1.5 0.1 — — 1.6 Restructuring expense 5.0 3.5 2.3 — 10.8 Gain from impairment or disposal of assets — net — (0.4 ) (3.6 ) — (4.0 ) (Loss) earnings from operations (46.2 ) 116.4 150.4 — 220.6 Interest expense 82.8 1.1 3.0 — 86.9 Loss on modification or extinguishment of debt 1.7 — — — 1.7 Other (income) expense — net (10.2 ) (23.7 ) 44.5 — 10.6 Equity in earnings (loss) of subsidiaries 232.6 86.1 — (318.7 ) — Earnings (loss) before income taxes 112.1 225.1 102.9 (318.7 ) 121.4 Income taxes (20.8 ) (7.5 ) 16.8 — (11.5 ) Net earnings (loss) $ 132.9 $ 232.6 $ 86.1 $ (318.7 ) $ 132.9 Total other comprehensive income (loss), net of tax 11.4 20.3 17.8 (38.1 ) 11.4 Comprehensive income (loss) $ 144.3 $ 252.9 $ 103.9 $ (356.8 ) $ 144.3 WELBILT, INC. Consolidating Statement of Operations For the year ended December 31, 2016 (in millions) Parent Guarantor Non- Consolidating Adjustments Consolidated Net sales $ — $ 1,069.5 $ 782.2 $ (395.6 ) $ 1,456.1 Cost of sales 3.4 774.4 540.1 (395.6 ) 922.3 Gross profit (3.4 ) 295.1 242.1 — 533.8 Selling, general and administrative expenses 33.2 153.5 99.4 — 286.1 Amortization expense — 28.4 2.8 — 31.2 Separation expense 6.3 — 0.2 — 6.5 Restructuring expense — 1.6 0.9 — 2.5 Gain from impairment or disposal of assets — net — 2.9 0.4 — 3.3 (Loss) earnings from operations (42.9 ) 108.7 138.4 — 204.2 Interest expense 82.2 1.2 1.8 — 85.2 Interest expense on notes with MTW — net — — 0.1 — 0.1 Loss on modification or extinguishment of debt 2.7 — — — 2.7 Other (income) expense — net (3.4 ) 16.4 1.0 — 14.0 Equity in earnings (loss) of subsidiaries 194.1 115.4 — (309.5 ) — Earnings (loss) before income taxes 69.7 206.5 135.5 (309.5 ) 102.2 Income taxes (1.8 ) 12.4 20.1 — 30.7 Net earnings (loss) $ 71.5 $ 194.1 $ 115.4 $ (309.5 ) $ 71.5 Total other comprehensive income (loss), net of tax 1.1 3.0 7.3 (10.3 ) 1.1 Comprehensive income (loss) $ 72.6 $ 197.1 $ 122.7 $ (319.8 ) $ 72.6 WELBILT, INC. Consolidating Balance Sheet As of December 31, 2018 (in millions) Parent Guarantor Non- Consolidating Adjustments Consolidated Assets Current assets: Cash and cash equivalents $ 0.2 $ 0.5 $ 69.7 $ — $ 70.4 Restricted cash — — 2.8 — 2.8 Short-term investment — — 32.0 — 32.0 Accounts receivable — net — — 114.3 (1.8 ) 112.5 Inventories — net — 99.8 90.8 — 190.6 Prepaids and other current assets 17.0 3.5 11.7 — 32.2 Total current assets 17.2 103.8 321.3 (1.8 ) 440.5 Property, plant and equipment — net 3.0 71.1 44.9 — 119.0 Goodwill — 832.4 103.2 — 935.6 Other intangible assets — net — 370.8 175.9 — 546.7 Intercompany long-term note receivable 20.0 10.1 9.9 (40.0 ) — Due from affiliates — 3,395.0 — (3,395.0 ) — Investment in subsidiaries 4,200.5 — — (4,200.5 ) — Other non-current assets 12.1 4.0 28.1 (11.0 ) 33.2 Total assets $ 4,252.8 $ 4,787.2 $ 683.3 $ (7,648.3 ) $ 2,075.0 Liabilities and equity Current liabilities: Accounts payable $ 0.2 $ 81.5 $ 71.2 $ (1.9 ) $ 151.0 Accrued expenses and other liabilities 33.9 88.8 61.0 — 183.7 Short-term borrowings — — 15.0 — 15.0 Current portion of capital leases — 0.9 0.2 — 1.1 Product warranties — 18.2 9.7 — 27.9 Total current liabilities 34.1 189.4 157.1 (1.9 ) 378.7 Long-term debt and capital leases 1,246.6 1.2 74.0 — 1,321.8 Deferred income taxes 60.5 — 43.8 — 104.3 Pension and postretirement health obligations 45.5 4.6 — (10.9 ) 39.2 Intercompany long-term note payable 15.7 — 24.3 (40.0 ) — Due to affiliates 2,649.5 — 745.5 (3,395.0 ) — Investment in subsidiaries — 368.3 — (368.3 ) — Other long-term liabilities 14.5 23.2 6.9 — 44.6 Total non-current liabilities 4,032.3 397.3 894.5 (3,814.2 ) 1,509.9 Total equity (deficit): Total equity (deficit) 186.4 4,200.5 (368.3 ) (3,832.2 ) 186.4 Total liabilities and equity $ 4,252.8 $ 4,787.2 $ 683.3 $ (7,648.3 ) $ 2,075.0 WELBILT, INC. Consolidating Balance Sheet As of December 31, 2017 (in millions) Parent Guarantor Non- Consolidating Adjustments Consolidated Assets Current assets: Cash and cash equivalents $ 8.8 $ — $ 100.5 $ (0.8 ) $ 108.5 Restricted cash — — 0.3 — 0.3 Short-term investment — — 19.9 — 19.9 Accounts receivable — net — — 84.7 (1.0 ) 83.7 Inventories — net — 69.8 82.5 — 152.3 Prepaids and other current assets 5.3 5.9 7.8 — 19.0 Total current assets 14.1 75.7 295.7 (1.8 ) 383.7 Property, plant and equipment — net 0.5 68.7 43.0 — 112.2 Goodwill — 832.4 13.7 — 846.1 Other intangible assets — net — 396.3 65.1 — 461.4 Intercompany long-term note receivable — 20.0 — (20.0 ) — Due from affiliates — 3,252.8 — (3,252.8 ) — Investment in subsidiaries 4,009.4 — — (4,009.4 ) — Other non-current assets 10.8 5.2 28.7 (7.7 ) 37.0 Total assets $ 4,034.8 $ 4,651.1 $ 446.2 $ (7,291.7 ) $ 1,840.4 Liabilities and equity Current liabilities: Accounts payable $ 0.2 $ 58.2 $ 47.0 $ (1.8 ) $ 103.6 Accrued expenses and other liabilities 20.7 95.9 52.9 — 169.5 Current portion of capital leases — 0.5 0.2 — 0.7 Product warranties — 16.2 7.9 — 24.1 Total current liabilities 20.9 170.8 108.0 (1.8 ) 297.9 Long-term debt and capital leases 1,230.2 1.2 0.8 — 1,232.2 Deferred income taxes 73.7 — 17.6 — 91.3 Pension and postretirement health obligations 51.3 4.7 — (7.7 ) 48.3 Intercompany long-term note payable 15.7 — 4.3 (20.0 ) — Due to affiliates 2,501.4 — 751.4 (3,252.8 ) — Investment in subsidiaries — 440.2 — (440.2 ) — Other long-term liabilities 38.0 24.8 4.3 — 67.1 Total non-current liabilities 3,910.3 470.9 778.4 (3,720.7 ) 1,438.9 Total equity (deficit): Total equity (deficit) 103.6 4,009.4 (440.2 ) (3,569.2 ) 103.6 Total liabilities and equity $ 4,034.8 $ 4,651.1 $ 446.2 $ (7,291.7 ) $ 1,840.4 WELBILT, INC. Consolidating Statement of Cash Flows For the year ended December 31, 2018 (in millions) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash flows from operating activities Net cash (used in) provided by operating activities $ (150.9 ) $ 148.5 $ (446.9 ) $ 0.8 $ (448.5 ) Cash flows from investing activities Cash receipts on beneficial interest in sold receivables — — 576.4 — 576.4 Capital expenditures (2.9 ) (11.1 ) (7.4 ) — (21.4 ) Acquisition of intangible assets — (2.8 ) — — (2.8 ) Business acquisition, net of cash acquired — — (215.6 ) — (215.6 ) Purchase of short-term investment — — (35.0 ) — (35.0 ) Proceeds from maturity of short-term investment — — 20.7 — 20.7 Settlement of foreign exchange contract — — (10.0 ) — (10.0 ) Other 1.2 — — — 1.2 Intercompany investment — (132.3 ) 4.2 128.1 — Net cash (used in) provided by investing activities (1.7 ) (146.2 ) 333.3 128.1 313.5 Cash flows from financing activities Proceeds from long-term debt 300.5 — 175.0 — 475.5 Repayments on long-term debt and capital leases (281.0 ) (0.4 ) (101.8 ) — (383.2 ) Proceeds from short-term borrowings — — 30.0 — 30.0 Repayment of short-term borrowings — — (15.0 ) — (15.0 ) Debt issuance costs (6.8 ) — — — (6.8 ) Payment of deferred consideration — (1.4 ) — — (1.4 ) Exercises of stock options 6.2 — — — 6.2 Payments on tax withholdings for equity awards (3.0 ) — — — (3.0 ) Intercompany financing 128.1 — — (128.1 ) — Net cash provided by (used in) financing activities 144.0 (1.8 ) 88.2 (128.1 ) 102.3 Effect of exchange rate changes on cash — — (2.9 ) — (2.9 ) Net (decrease) increase in cash and cash equivalents and restricted cash (8.6 ) 0.5 (28.3 ) 0.8 (35.6 ) Balance at beginning of period 8.8 — 100.8 (0.8 ) 108.8 Balance at end of period $ 0.2 $ 0.5 $ 72.5 $ — $ 73.2 WELBILT, INC. Consolidating Statement of Cash Flows For the year ended December 31, 2017 (in millions) Parent Guarantor Non- Consolidating Adjustments Consolidated Cash flows from operating activities Net cash (used in) provided by operating activities $ (97.6 ) $ 169.3 $ (502.2 ) $ (0.8 ) $ (431.3 ) Cash flows from investing activities Cash receipts on beneficial interest in sold receivables — — 552.1 — 552.1 Capital expenditures (0.5 ) (12.5 ) (7.7 ) — (20.7 ) Proceeds from sale of property, plant and equipment — 6.0 6.3 — 12.3 Acquisition of intangible assets — (1.2 ) — — (1.2 ) Other 0.9 — — — 0.9 Intercompany investment — (163.4 ) 6.8 156.6 — Net cash provided by (used in) investing activities 0.4 (171.1 ) 557.5 156.6 543.4 Cash flows from financing activities Proceeds from long-term debt 155.0 — — — 155.0 Repayments on long-term debt and capital leases (203.4 ) (0.5 ) (0.2 ) — (204.1 ) Proceeds from short-term borrowings — — 4.0 — 4.0 Repayment of short-term borrowings — — (4.0 ) — (4.0 ) Debt issuance costs (2.0 ) — — — (2.0 ) Exercises of stock options 4.8 — — — 4.8 Payments on tax withholdings for equity awards (5.4 ) — — — (5.4 ) Intercompany financing 156.6 — — (156.6 ) — Net cash provided by (used in) financing activities 105.6 (0.5 ) (0.2 ) (156.6 ) (51.7 ) Effect of exchange rate changes on cash — — 6.9 — 6.9 Net increase (decrease) in cash and cash equivalents and restricted cash 8.4 (2.3 ) 62.0 (0.8 ) 67.3 Balance at beginning of period 0.4 2.3 38.8 — 41.5 Balance at end of period $ 8.8 $ — $ 100.8 $ (0.8 ) $ 108.8 WELBILT, INC. Consolidating Statement of Cash Flows For the year ended December 31, 2016 (in millions) Parent Guarantor Non- Consolidating Adjustments Consolidated Cash flows from operating activities Net cash (used in) provided by operating activities $ (100.4 ) $ 84.0 $ (355.6 ) $ — $ (372.0 ) Cash flows from investing activities Cash receipts on beneficial interest in sold receivables — — 494.3 — 494.3 Capital expenditures (1.0 ) (8.0 ) (7.0 ) — (16.0 ) Proceeds from sale of property, plant and equipment — — 0.5 — 0.5 Purchase of short-term investment — — (18.7 ) — (18.7 ) Proceeds from dispositions — — 1.1 — 1.1 Intercompany investment — (76.9 ) (106.9 ) 183.8 — Net cash (used in) provided by investing activities (1.0 ) (84.9 ) 363.3 183.8 461.2 Cash flows from financing activities Proceeds from long-term debt 1,499.5 0.2 1.4 — 1,501.1 Repayments on long-term debt and capital leases (186.0 ) (0.5 ) (0.3 ) — (186.8 ) Debt issuance costs (41.3 ) — — — (41.3 ) Dividend paid to MTW (1,362.0 ) — — — (1,362.0 ) Net transactions with MTW (4.6 ) — — — (4.6 ) Exercises of stock options 16.2 — — — 16.2 Payments on tax withholdings for equity awards (3.8 ) — — — (3.8 ) Intercompany financing 183.8 — — (183.8 ) — Net cash provided by (used in) financing activities 101.8 (0.3 ) 1.1 (183.8 ) (81.2 ) Effect of exchange rate changes on cash — — 0.9 — 0.9 Net increase (decrease) in cash and cash equivalents and restricted cash 0.4 (1.2 ) 9.7 — 8.9 Balance at beginning of period — 3.5 29.1 — 32.6 Balance at end of period $ 0.4 $ 2.3 $ 38.8 $ — $ 41.5 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 27. Subsequent Events The Company has initiated a global restructuring action and a limited executive management restructuring to be completed in the first quarter of 2019. In connection with this action, the Company expects to incur severance and related costs of $4 million to $5 million , which will be recognized during the first quarter of 2019 in "Restructuring expense" in the consolidated statements of operations. In February 2019, the Company contracted with third-party consultants to complete initial overall operational reviews of the Company's profit optimization initiatives to validate the Company's long-term growth and margin targets and refine its execution plans. In consideration for these services, the Company agreed to pay fees of approximately $8.4 million plus out-of-pocket fees and costs of which $5 million to $6 million is expected to be incurred during the first quarter of 2019 in the consolidated statement of operations. |
Schedule II_ Valuation and Qual
Schedule II: Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II: Valuation and Qualifying Accounts | Schedule II: Valuation and Qualifying Accounts For the years ended December 31, 2018 , 2017 and 2016 (in millions) Balance at beginning of period Charged to costs and expenses Utilization of reserve Other (1) Balance at end of period Year end December 31, 2016 Allowance for doubtful accounts $ 4.0 1.7 (0.3 ) (0.1 ) $ 5.3 Deferred tax valuation allowance $ 80.1 2.7 (18.2 ) (4.7 ) $ 59.9 Year end December 31, 2017 Allowance for doubtful accounts $ 5.3 (0.9 ) (0.7 ) 0.3 $ 4.0 Deferred tax valuation allowance $ 59.9 4.8 (18.9 ) (4.8 ) $ 41.0 Year end December 31, 2018 Allowance for doubtful accounts $ 4.0 0.6 (0.6 ) (0.1 ) $ 3.9 Deferred tax valuation allowance 41.0 (0.2 ) — (0.1 ) $ 40.7 (1) Other changes to the balances for allowance for doubtful accounts and deferred tax valuation allowance are primarily the impact of foreign exchange rates in all periods presented except for the year ended December 31, 2017 where the deferred tax valuation allowance is primarily reflective of the impact of the change in the United States corporate statutory tax rate on capital loss carryforwards. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). All intercompany balances and transactions between the Company and its affiliates have been eliminated. During the periods presented prior to the Spin-Off on March 4, 2016, the Company's financial statements were prepared on a combined stand-alone basis derived from the consolidated financial statements and accounting records of MTW. The Company functioned as part of the larger group of companies controlled by MTW. Accordingly, MTW performed certain corporate overhead functions for the Company. Therefore, certain costs related to the Company have been allocated from MTW for the period of January 1, 2016 up to the Spin-Off on March 4, 2016. These allocated costs were primarily related to: (1) corporate support functions that were provided on a centralized basis at a MTW enterprise level including, but not limited to, finance, audit, legal, information technology, human resources, tax, treasury, investor relations, and external reporting; (2) stock-based compensation; (3) employee compensation, pension and benefit costs; and (4) securitization financing costs. These expenses were allocated to Welbilt based on direct usage or direct identification where applicable, and where not applicable, such costs were allocated primarily based on net sales, headcount or based on existing allocation methods, specifically for those costs which were previously partially allocated to Welbilt or other methodologies deemed appropriate by management. Prior to the Spin-Off, cash was managed centrally and flowed through centralized bank accounts controlled and maintained by MTW. Accordingly, cash and cash equivalents held by MTW at the corporate level were not attributable to Welbilt for any of the periods presented prior to the Spin-Off. Only cash amounts specifically attributable to Welbilt are reflected in the accompanying consolidated financial statements. Transfers of cash, both to and from MTW's centralized cash management system, are reflected as a component of "Net transactions with MTW" as a financing activity in the consolidated statements of cash flows. Additionally, none of MTW’s debt has been allocated to the consolidated financial statements as Welbilt has no legal obligation for any of the debt agreements. Welbilt received or provided funding as part of MTW's centralized treasury program. Income tax expense in the consolidated statement of operations for the partial 2016 period prior to the Spin-Off was computed on a separate return basis, as if Welbilt was operating as a separate consolidated group and filed separate tax returns in the jurisdictions in which it operated. As a result of potential changes to the Company's business model and potential past and future tax planning, income tax expense included in the consolidated financial statements for the partial 2016 periods prior to and after the Spin-Off may not be indicative of Welbilt's future expected income tax expense for subsequent periods. In addition, cash tax payments and items of current and deferred taxes may not be reflective of Welbilt's actual tax balances subsequent to the Spin-Off. Welbilt, as a stand-alone entity commencing with the Spin-Off, files U.S. federal and state tax returns on its own behalf. The responsibility for current income tax liabilities of U.S. federal and state combined tax filings were deemed to settle immediately with MTW paying entities effective with the Spin-Off in the respective jurisdictions, whereas state tax returns for certain separate Welbilt filing entities were filed by Welbilt for periods prior to and after the Spin-Off. Cash tax payments commencing with the Spin-Off for the estimated liability are the actual cash taxes paid to the respective tax authorities in the jurisdictions wherever applicable. Prior to the Spin-Off, the operations of Welbilt were generally included in the consolidated tax returns filed by the respective MTW entities, with the related income tax expense and deferred income taxes calculated on a separate return basis in the consolidated financial statements. As a result, the effective tax rate and deferred income taxes of Welbilt may differ from those in periods subsequent to the Spin-Off. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods including costs allocated prior to the Spin-Off. Significant items subject to such estimates and assumptions include inventory obsolescence costs, warranty costs, product liability costs, employee benefit programs, sales rebates and the measurement of income tax assets and liabilities. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. On an ongoing basis, the Company evaluates these assumptions, judgments and estimates. Actual results may differ from these estimates. In addition, the consolidated financial statements may not be indicative of the Company's future performance, and they do not necessarily include all of the actual expenses that would have been incurred by the Company and may not reflect the results of operations, financial position and cash flows had the Company been a stand-alone Company during the entirety of the period presented prior to the Spin-Off. |
Cash and Cash Equivalents | Cash and Cash Equivalents All short-term investments purchased with an original maturity of three months or less are considered cash equivalents. Our policy is to place our operating demand deposit accounts with high credit quality financial institutions, the balances of which at times may exceed federally insured limits. |
Restricted Cash | Restricted Cash Cash and cash equivalents that are restricted as to withdrawal or use under the terms of certain contractual agreements are recorded separately on the consolidated balance sheets and generally, include cash balances held as security under the Company's accounts receivable securitization program. |
Short-Term Investments | Short-Term Investments The Company considers all investments purchased with an original maturity of more than three months but not greater than one year to be short-term investments. The short-term investment balance as of December 31, 2018 and 2017 represented a certificate of deposit with an original scheduled maturity of 12 months, which the Company has the intent and ability to hold to maturity. It was, therefore, classified as held-to-maturity and carried at amortized cost. The fair value of this instrument was equal to its amortized cost and, as such, there were no unrealized gains or losses associated with the instrument. Management evaluates this held-to-maturity security for other-than-temporary impairment on a quarterly basis by performing a credit review of the issuer. No indicators of other-than-temporary impairment for this security were identified as of December 31, 2018. In addition, the Company has not experienced credit losses during any period. |
Accounts Receivable | Accounts Receivable Transactions under the Company's securitization programs are accounted for as sales. Sales of trade receivables to the purchaser are reflected as a reduction of accounts receivable in the consolidated balance sheets. In addition, the Company maintains a "beneficial interest," or right to collect cash, in the sold receivables. Cash receipts from the third-party purchasing financial institution at the time of the sale are classified as operating cash while cash receipts from the beneficial interest on sold receivables are classified as investing activities on the consolidated statements of cash flows. The Company deems the interest rate risk related to the deferred purchase price notes to be de minimis, primarily due to the short average collection cycle of the related receivables (i.e., less than 60 days). Accounts receivable are reduced by an allowance for amounts that may become uncollectible in the future. The Company's estimate for the allowance for doubtful accounts related to trade receivables includes an evaluation of specific accounts where it has information that the customer may have an inability to meet its financial obligations together with a general provision for unknown but existing doubtful accounts based on historical experience, which are subject to change if experience improves or deteriorates. |
Inventories | Inventories The majority of inventories are valued at the lower of cost or net realizable value. Approximately 92.4% and 92.3% of the Company's inventories were valued using the first-in, first-out ("FIFO") method at December 31, 2018 and 2017 , respectively. The remaining inventories were valued using the last-in, first-out ("LIFO") method. If the FIFO inventory valuation method had been used exclusively, inventories would have increased by $4.2 million and $3.9 million at December 31, 2018 and 2017 , respectively. Finished goods and work-in-process inventories include material, labor and manufacturing overhead costs. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost. Expenditures for maintenance, repairs and minor renewals are charged against earnings as incurred. Expenditures for major renewals and improvements that substantially extend the capacity or useful life of an asset are capitalized and are then depreciated. The cost and accumulated depreciation for property, plant and equipment sold, retired, or otherwise disposed of are relieved from the accounts, and resulting gains or losses are reflected in earnings. Property, plant and equipment are depreciated over the estimated useful lives of the assets using the straight-line depreciation method for financial reporting and on accelerated methods for income tax purposes. Property, plant and equipment are depreciated over the following estimated useful lives: Years Building and improvements 2 — 40 Machinery, equipment and tooling 2 — 20 Furniture and fixtures 3 — 15 Computer hardware and software 2 — 7 |
Business Combinations | Business Combinations The Company allocates the fair value of purchase consideration to the assets acquired and liabilities assumed based on their fair values at the acquisition date. The excess of the fair value of purchase consideration over the fair value of these assets acquired and liabilities assumed is recorded as goodwill. When determining the fair values of assets acquired and liabilities assumed, management makes significant estimates and assumptions, especially with respect to intangible assets. Critical estimates in valuing intangible assets include, but are not limited to, expected future cash flows, which includes consideration of future growth rates and margins, customer attrition rates, future changes in technology and brand awareness, loyalty and position, and discount rates. Fair value estimates are based on the assumptions management believes a market participant would use in pricing the asset or liability. Amounts recorded in a business combination may change during the measurement period, which is a period not to exceed one year from the date of acquisition, as additional information about conditions existing at the acquisition date becomes available. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill is not amortized, but it is tested for impairment annually, or more frequently, as events dictate. See additional discussion of impairment testing under "Impairment of Long-Lived Assets," below. The Company's other intangible assets with indefinite lives, including trademarks and trade names, are not amortized, but are also tested for impairment annually, or more frequently, as events dictate. The Company's other intangible assets with finite lives are subject to amortization and are tested for impairment whenever events or changes in circumstances indicate that their carrying values may not be recoverable. Other intangible assets with finite lives are amortized on a straight-line basis over the following estimated useful lives: Useful lives Patents 10 — 20 years Engineering drawings 15 years Customer relationships 10 — 20 years Design libraries 7 — 20 years The Company performs annual impairment tests of goodwill and intangible assets with indefinite lives at June 30 of each fiscal year and whenever a triggering event occurs between annual impairment tests. The goodwill impairment test is performed for the Company's reporting units which have been determined to be: Americas, EMEA and APAC. When testing for impairment, the Company has the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of any reporting unit or indefinite lived intangible asset is less than its carrying amount. In conducting a qualitative assessment, the Company evaluates the totality of relevant events and circumstances that affect the fair value or carrying value of the reporting unit or asset. These events and circumstances include, but are not limited to, macroeconomic conditions, industry and competitive environment conditions, overall financial performance, reporting unit specific events and market considerations. In those instances where the Company concludes that it is not more likely than not that the fair value is less than the carrying amount, no impairment is indicated and no further impairment test is performed. When the Company chooses not to perform a qualitative assessment, or if, based on the qualitative assessment, the Company concludes it is more likely than not that the fair value is less than the carrying amount, a quantitative impairment test is performed at the reporting unit level utilizing the one-step approach. This one-step approach identifies both the existence of impairment and the amount of the impairment loss. In conducting the quantitative analysis, the Company compares the fair value of the reporting unit with goodwill or the indefinite lived intangible asset to its carrying value. The fair value is determined using the income approach based on the present value of expected future cash flows, including terminal value, and a weighted average cost of capital all of which involve management judgment and assumptions. When the carrying amount of the reporting or the intangible asset exceeds its fair value, the Company recognizes an impairment loss in an amount equal to the excess; however, the impairment loss for goodwill is limited to the total amount of the goodwill allocated to the reporting unit. See Note 7, "Goodwill and Other Intangible Assets — Net," for further details on the Company's impairment assessments. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the assets’ carrying amount may not be recoverable. When reviewing its long-lived assets, other than goodwill and other intangible assets with indefinite lives, the Company groups its assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities and evaluates the asset group against the sum of the undiscounted future cash flows to determine impairment. If an impairment is determined to exist, the impairment loss is calculated based upon comparison of the fair value to the net book value of the assets. Impairment losses on assets held for sale are based on the estimated proceeds to be received, less costs to sell. |
Warranties | Warranties Estimated warranty costs are recorded in cost of sales at the time of sale of the products based on historical warranty experience for the related product or estimates of projected costs due to specific warranty issues on new products. These estimates are reviewed periodically and are adjusted based on changes in facts, circumstances or actual experience. See Note 14, "Product Warranties," for further details. |
Product Liabilities | Product Liabilities The Company records product liability reserves for its self-insured portion of any pending or threatened product liability actions. The reserve is based upon two estimates. First, the Company tracks the population of all outstanding pending and threatened product liability cases to determine an appropriate case reserve for each based upon the Company's best judgment and the advice of legal counsel. These estimates are continually evaluated and adjusted based upon changes to facts and circumstances surrounding the individual cases. Second, the Company determines the amount of additional reserve required to cover product liability claims anticipated to have occurred but have not yet been reported and to account for possible adverse development of the established case reserves. This analysis is performed twice annually. |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions The financial statements of the Company's non-U.S. subsidiaries, where the functional currency is not the U.S. dollar, are translated using the current exchange rate for assets and liabilities and the average exchange rate for the year for income and expense items. Resulting translation adjustments are recorded to "Accumulated other comprehensive loss" ("AOCI") as a component of equity. The Company records foreign currency transaction gains or losses as a component of "Other expense — net". |
Derivative Financial Instruments and Hedging Activities | Derivative Financial Instruments and Hedging Activities The Company enters into derivative instruments to hedge interest rate risk, commodity exposure associated with aluminum, copper and steel prices and foreign currency exchange risk. The Company has adopted written policies and procedures that place all financial instruments under the direction of corporate treasury and restrict all derivative transactions to those intended for hedging purposes. The use of financial instruments for trading purposes is strictly prohibited. The fair values of all derivatives are recorded in the consolidated balance sheets. The change in a derivative’s fair value is recorded each period in current earnings or comprehensive income depending on whether the derivative is designated and qualifies as part of a hedge transaction and if so, the type of hedge transaction. The amount reported for derivative instrument fair market value adjustments for cash flow hedges and net investment hedges are reported in the statements of comprehensive income, net of taxes. Fair market value adjustments for fair value hedges, as well as the offsetting gain or loss on the hedged item attributable to the hedged risk, are recognized in current earnings within the same line item associated with the hedged item. |
Stock-Based Compensation | Stock-Based Compensation Welbilt employees historically participated in MTW's stock-based compensation plans for the periods prior to the Spin-Off. Stock-based compensation expense for the period prior to the Spin-Off has been allocated to Welbilt based on the awards and terms previously granted to its employees. Until consummation of the Spin-Off, Welbilt continued to participate in MTW's stock-based compensation plans and record stock-based compensation expense based on the stock-based awards granted to the Welbilt employees. In conjunction with the Spin-Off, the Company adopted the 2016 Omnibus Incentive Plan (the "2016 Plan") that permits the granting of stock options, restricted stock awards, restricted stock units, performance share awards and units, and other types of stock-based and cash awards. In addition, the 2016 Plan permits the issuance of awards ("Replacement Awards") in partial substitution for awards relating to shares of common stock of MTW that were outstanding immediately prior to the Spin-Off. Stock-based compensation awards are measured at fair value at the date of grant and expensed over their vesting periods. Stock based compensation is recognized only for those awards expected to vest. The expense, net of forfeitures, is recognized using the straight-line method. |
Employee Benefit Plans | Employee Benefit Plans The Company provides a range of benefits to its employees and retired employees, including pensions and postretirement health care coverage. Plan assets and obligations are recorded annually based on our measurement date utilizing various actuarial assumptions such as discount rates, expected return on plan assets, compensation increases, retirement and mortality rates, and health care cost trend rates as of that date. The approaches used to determine the annual assumptions are as follows: • Discount Rate - The discount rate assumptions are based on the interest rate of non-callable high-quality corporate bonds, with appropriate consideration of our pension plans’ participants’ demographics and benefit payment terms. • Expected Return on Plan Assets - The expected return on plan assets assumptions are based on the Company's expectation of the long-term average rate of return on assets in the pension funds, which is reflective of the current and projected asset mix of the funds and considers the historical returns earned on the funds. • Retirement and Mortality Rates - The retirement and mortality rate assumptions are based primarily on actual plan experience and mortality tables. • Health Care Cost Trend Rates - The health care cost trend rate assumptions are developed based on historical cost data, near-term outlook and an assessment of likely long-term trends. Measurements of net periodic benefit cost are based on the assumptions used for the previous year-end measurements of assets and obligations. The Company reviews its actuarial assumptions on an annual basis and makes modifications to the assumptions when appropriate. As required by U.S. GAAP, the effects of the modifications are recorded currently or amortized over future periods. The Company has developed the assumptions with the assistance of its independent actuaries and other relevant sources, and believes that the assumptions used are reasonable; however, changes in these assumptions could impact the Company's financial position, results of operations or cash flows. See Note 15, "Employee Benefit Plans," for further details. |
Deferred Compensation Plans | Deferred Compensation Plan The Welbilt Deferred Compensation Plan is an unfunded, non-tax-qualified deferred compensation plan for highly compensated and key management employees and for directors that allows participants to defer a portion of their compensation. The Plan permits the Company, at its option, to make matching contributions to the participants' accounts. The Company utilizes a rabbi trust to hold assets intended to satisfy the Company's obligations under the deferred compensation plan. The trust restricts the Company's use and access to the assets held but is subject to the claims of the Company's general creditors. Plan participants are able to direct deferrals and Company matching contributions into two separate investment programs, Program A and Program B. Program A invests solely in the Company’s stock; dividends paid on the Company’s stock, if any, are automatically reinvested, and all distributions must be made in Company stock. Program A is accounted for as a plan that does not permit diversification. The Company stock held by Program A is carried at cost, is included in "Treasury stock" in the consolidated balance sheets. The deferred compensation obligation for Program A is included in "Other long-term liabilities" in the consolidated balance sheets. Program B offers a variety of investment options but does not include Company stock as an investment option. All distributions from Program B must be made in cash. Participants cannot transfer assets between programs. Program B is accounted for as a plan that permits diversification. Changes in the fair value of the assets are recognized in earnings. The deferred compensation obligation is adjusted, with a charge or credit to compensation cost, to reflect changes in the fair value of the obligation. The assets are included in "Other non-current assets", and the related obligations are included in "Other long-term liabilities" in the consolidated balance sheets. |
Revenue Recognition | Revenue Recognition Prior to the adoption of the provisions of Accounting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers (Topic 606)" and with additional updates subsequently issued (collectively, "ASU 2014-09"), the Company generally recognized and earned revenue when all the following criteria were satisfied with regard to a specific transaction: persuasive evidence of a sales arrangement exists; the price is fixed or determinable; collectability of cash is reasonably assured; and delivery has occurred or services have been rendered. Shipping and handling fees were reflected in net sales and shipping and handling costs were reflected in "Cost of sales" in the consolidated statements of operations. On January 1, 2018, the Company adopted the provisions of ASU 2014-09, which creates a single, comprehensive revenue recognition model for all contracts with customers. The model is based on changes in contract assets (rights to receive consideration) and liabilities (obligations to provide a good or service.) The Company makes judgments including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price, and allocating the transaction price to each performance obligation. Subsequent to the adoption of ASU 2014-09, revenue is recognized based on the satisfaction of performance obligations, which occurs when control of a good or service transfers to a customer. A majority of the Company's net sales continue to be recognized at the point in time when products are shipped from its manufacturing facilities. For the majority of foodservice equipment and aftermarket parts and support, the transfer of control and revenue recognition materializes when the products are shipped from the manufacturing facility or the service is provided to the customer. The Company typically invoices its customers with payment terms of 30 days and the Company's average collection cycle is generally less than 60 days. The amount of consideration received and revenue recognized varies with marketing incentives such as annual customer rebate programs and returns that are offered to customers. Variable consideration as a result of customer rebate programs is typically based on calendar-year purchases, and is determined using the expected value method in interim periods as prescribed in the guidance. Customers have the right to return eligible equipment and parts. The expected returns are based on an analysis of historical experience. The estimate of revenue is adjusted at the earlier of when the most likely amount of the expected consideration changes or when the consideration becomes fixed. The impact of such adjustments was not material in the year ended December 31, 2018 . Substantially all of the Company's revenues comprise revenues from contracts with customers. These revenues are disaggregated by major source and geographic location, as the Company believes it best depicts how the nature, amount, timing and uncertainty of its revenue and cash flows are affected by economic factors. Net sales by product class and segment are as follows: Year Ended December 31, 2018 (in millions) Commercial Foodservice Whole Goods Aftermarket Parts and Support Total Americas $ 907.0 $ 183.9 $ 1,090.9 EMEA 258.8 48.6 307.4 APAC 163.2 28.6 191.8 Total net sales $ 1,329.0 $ 261.1 $ 1,590.1 The Company also recognizes revenue for foodservice-based projects. These revenues are generally recognized at the point-in-time in which control transfers to the customer. However, depending on the nature of the performance obligations in the contract, revenues may be recognized over time. The Company sells separately-priced extended warranties that extend coverage beyond the standard product warranty by 12 to 60 months. Payments are at the inception of the contract and revenue is recognized over the term of the agreement on a straight-line basis, which the Company believes approximates the timing of costs expected to be incurred in satisfying the obligations of the contract. |
Research and Development | Research and Development Research and development costs are charged to expense as incurred within "Selling, general and administrative expenses" in the consolidated statements of operations and amounted to $37.3 million , $39.4 million and $35.2 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Research and development costs include salaries, materials, contractor fees and other administrative costs. |
Restructuring Charges | Restructuring Charges Restructuring charges for exit and disposal activities are recognized when the liability is incurred. The liability for the restructuring charge associated with an exit or disposal activity is measured initially at its fair value. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company records a valuation allowance that represents a reserve on deferred tax assets for which utilization is not more likely than not. Management judgment is required in determining the Company's provision for income taxes, deferred tax assets and liabilities, and the valuation allowance recorded against net deferred tax assets. The Company does not currently provide for additional U.S. and foreign income taxes which would become payable upon repatriation of undistributed earnings of foreign subsidiaries. The Company recognizes liabilities for uncertain income tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step requires management to estimate and measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. It is inherently difficult and subjective to estimate such amounts, as management must determine the probability of various possible outcomes. The Company reevaluates these uncertain tax positions on a quarterly basis or when new information becomes available to management. These reevaluations are based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, successfully settled issues under audit, expirations due to statutes, and new audit activity. Such a change in recognition or measurement could result in the recognition of a tax benefit or an increase to the tax accrual. The Company records discrete income tax expense or benefit in the period in which it is identified. Examples of such types of discrete items include, but are not limited to: changes in estimates of the outcome of tax matters related to prior years, assessments of valuation allowances, return-to-provision adjustments, the settlement of tax audits and certain changes in tax legislation or regulations. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and included in "Selling, general and administrative expenses." |
Comprehensive Income | Comprehensive Income Comprehensive income includes, in addition to net earnings, other items that are reported as direct adjustments to equity. Currently, these items are foreign currency translation adjustments, the change in fair value of certain derivative instruments and employee pension and postretirement benefit adjustments. |
Concentration of Credit Risk | Concentration of Credit Risk Credit extended to customers through trade accounts receivable potentially subjects the Company to risk. This risk is limited due to the large number of customers and their dispersion across various industries and many geographical areas. However, a significant amount of the Company's receivables are with distributors, dealers and large companies in the foodservice and beverage industry. Management currently does not foresee a significant credit risk associated with these individual groups of receivables, but continues to monitor the exposure, if any. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation and include: • Reclassification of periodic pension and postretirement benefit costs totaling $1.5 million and $5.0 million from "Selling, general and administrative expenses" to "Other expense — net" in the consolidated statement of operations for the years ended December 31, 2017 and 2016 , respectively, as a result of the retrospective adoption of ASU 2017-07, "Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost." • Beginning and ending cash and cash equivalents shown on the consolidated statements of cash flows for the years ended December 31, 2017 and 2016 was increased for restricted cash of $6.4 million and $0.6 million , respectively, and cash flows provided by investing activities were reduced by $6.2 million and $6.0 million , respectively, as a result of adopting ASU 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash." • Reclassification of consideration received for the beneficial interest obtained for transferring trade receivables in securitization transactions of $552.1 million and $494.3 million , respectively, from operating activities to investing activities on the consolidated statements of cash flows for the years ended December 31, 2017 and 2016 , respectively, as result of the adoption of ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments." Revisions of Previously Issued Consolidated Financial Statements In preparing its 2018 financial statements, the Company identified certain errors in its previously issued consolidated financial statements as of and for the years ended December 31, 2017 and 2016. Details of the errors are as follows: • A classification error related to a foreign short-term time deposit with an original maturity greater than three months was incorrectly classified as a cash and cash equivalent instead of a short-term investment. This error resulted in an overstatement in cash and cash equivalents and an understatement in short-term investments of $19.9 million and $18.7 million as of December 31, 2017 and December 31, 2016, respectively. This error impacted the consolidated balance sheet as of December 31, 2017 and the statements of cash flows for the years ended December 31, 2017 and 2016, respectively. • A calculation error related to the effect of exchange rate changes which resulted in an overstatement of cash flows from operating activities of $16.2 million and $1.8 million for the years ended December 31, 2017 and 2016 on the statement of cash flows, respectively. The Company has assessed the materiality of the above errors on the 2017 and 2016 consolidated financial statements and concluded that the errors were not material to any prior annual periods. The Company has corrected these errors, and other immaterial errors, by revising its previously issued 2017 and 2016 consolidated financial statements in connection with this filing of the 2018 Annual Report on Form 10-K. This revision had no effect on the Company's consolidated statements of operations, comprehensive income or equity for any annual period previously presented. Refer to Note 25, "Revision of Previously Issued Consolidated Financial Statements," for additional discussion of the errors and related error corrections included on the consolidated balance sheets and statements of cash flows. All relevant footnotes to the consolidated financial statements in this Form 10-K have also been revised to reflect the correction of these errors. In addition, the impact of such errors on the 2018 unaudited quarterly financial statements are included in Note 24, "Quarterly Financial Data (Unaudited)." |
Recently Adopted and Not Yet Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In August 2018, the Financial Accounting Standards Board ("FASB") issued ASU 2018-14 "Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans," which modifies the disclosure requirements on the company-sponsored defined benefit pension or other postretirement plans. The Company early adopted this standard as of December 31, 2018 and has applied the disclosure requirements on a retrospective basis. Other than changes in disclosure requirements, this standard did not have an impact on the Company's consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, "Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting," which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting pursuant to Topic 718. ASU 2017-09 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted. The amendments in this update are required to be applied prospectively to an award modified on or after the adoption date. This standard became effective for the Company on January 1, 2018. This standard did not have a material impact on the Company's consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, "Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost," which requires the employer to disaggregate the service cost component from the other components of net benefit cost. The ASU also provides explicit guidance on how to present the service cost component and the other components of net benefit cost in the income statement and allows only the service cost component of net benefit cost to be eligible for capitalization. As of January 1, 2018, the Company adopted this standard on a retrospective basis. Prior to adoption, periodic benefit costs for both pensions and postretirement benefits were recorded in "Selling, general and administrative expenses" in the consolidated statements of operations. The impact of this standard has been disclosed with "Reclassifications" above. In November 2016, the FASB issued ASU 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash," which requires an entity to reconcile the changes in restricted cash as part of total cash and cash equivalents in its statements of cash flows. This standard became effective for the Company on January 1, 2018. The adoption of this standard was applied retrospectively and the impact of this standard has been disclosed with "Reclassifications" above. In October 2016, the FASB issued ASU 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory," which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. ASU 2016-16 became effective for the Company on January 1, 2018. Currently the Company does not have material intercompany transactions of non-inventory items and the standard has not had a material impact on the Company's consolidated financial statements as of December 31, 2018 . In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments," which clarifies the accounting guidance on how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This standard became effective for the Company on January 1, 2018. The adoption of this standard impacts the presentation of collections of the deferred purchase price from its sales of trade accounts receivables in the Company’s consolidated statements of cash flows. Subsequent to adoption, collection of these balances is reported in cash flows from investing activities rather than cash flows from operating activities with all retrospective periods reclassified to conform for comparability. The impact of this standard has been disclosed with "Reclassifications" above. Refer to Note 4, "Accounts Receivable Securitization," for further discussion. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)" with additional updates subsequently issued (collectively, "ASU 2014-09"). This ASU creates a single, comprehensive revenue recognition model for all contracts with customers. The model is based on changes in contract assets (rights to receive consideration) and liabilities (obligations to provide a good or service). On January 1, 2018, the Company adopted ASU 2014-09. Either a retrospective or cumulative effect transition method, referred to as the modified retrospective method, is permitted. The Company used the modified retrospective method and recognized the cumulative effect of the initial application of the new revenue standard as an adjustment to the opening balance of retained earnings. Prior period results have not been recasted and continue to be reported under the accounting standards in effect for those periods. In connection with the adoption of this guidance, the Company elected the following practical expedients: (i) significant financing component, (ii) sales taxes, (iii) costs of obtaining a contract, (iv) shipping and handling activities and (v) immaterial promised goods or services. The adoption of ASU 2014-09 did not have a material impact on the Company's consolidated balance sheet as of December 31, 2018 or the consolidated statement of operations or cash flows for the year ended December 31, 2018 . Subsequent to the adoption of ASU 2014-09, revenue is recognized based on the satisfaction of performance obligations, which occurs when control of a good or service transfers to a customer. A majority of the Company's net sales continue to be recognized when products are shipped from its manufacturing facilities. The cumulative effect of the changes made to the Company's consolidated balance sheet as of January 1, 2018 for the adoption of ASU 2014-09 is related to the establishment of right to return assets in conjunction with its product return policy as shown below: (in millions) As of December 31, 2017 Adjustments Due to Adoption of ASU 2014-09 As of January 1, 2018 Balance Sheet Assets: Inventories — net $ 152.3 $ 1.1 $ 153.4 Equity: Retained earnings $ 189.1 $ 1.1 $ 190.2 Recent Accounting Pronouncements Not Yet Adopted In October 2018, the FASB issued ASU 2018-16, "Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate ("SOFR") Overnight Index Swap ("OIS") Rate as a Benchmark Interest Rate for Hedge Accounting Purposes." The amendments in this update permit use of the OIS rate based on the SOFR as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815 in addition to the U.S. Treasury Rate, the London Interbank Offered Rate swap rate, the OIS rate based on the Fed Funds Effective Rate, and the Securities Industry and Financial Markets Association Municipal Swap Rate. The amendments in this update are required to be adopted concurrently with the amendments in ASU 2017-12, which for the Company is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company will adopt this guidance effective January 1, 2019 and does not expect a material impact on the Company's consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, "Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract," which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software, with amortization expense being recorded in the same income statement expense line as the hosted service costs and over the expected term of the hosting arrangement. ASU 2018-15 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 and should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of this ASU will have on the consolidated financial statements and related disclosures. In February 2018, the FASB issued ASU 2018-02, "Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income," to provide guidance on the presentation of certain income statement effects from the Tax Cuts and Jobs Act’s reduction in the corporate statutory tax rate . The ASU provides the option of reclassifying what are called the "stranded" tax effects within accumulated other comprehensive loss to retained earnings and requires increased disclosures describing the accounting policy used to release the income tax effects from accumulated other comprehensive income (loss), whether the amounts reclassified are the stranded income tax effects from the Tax Cuts and Jobs Act, and information about the other effects on taxes from the reclassification. ASU 2018-02 may be adopted using one of two transition methods: (1) retrospective to each period (or periods) in which the income tax effects of the Tax Cuts and Jobs Act related to items remaining in accumulated other comprehensive income (loss) are recognized, or (2) at the beginning of the period of adoption. The ASU is effective for fiscal years beginning after December 15, 2018, and the quarterly and other interim periods in those years. Early adoption is permitted. The Company has elected not to release the tax effects within accumulated other comprehensive loss and as a result, the adoption of this ASU will not have an impact on the consolidated financial statements and related disclosures. In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities," which improves the financial reporting of hedging relationships to better align risk management activities in financial statements and make certain targeted improvements to simplify the application of current hedge accounting guidance in current U.S. GAAP. The standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company will adopt this guidance effective January 1, 2019. The Company has completed its evaluation of its derivatives portfolio with respect to the impact of the adoption of this ASU and concluded that it does not have a material effect on its consolidated financial statements and related disclosures. In March 2017, the FASB issued ASU 2017-08, "Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities," which shortens the amortization period for certain callable debt securities held at a premium to the earliest call date. ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The Company does not expect the adoption of this standard to have an impact on the Company's consolidated financial statements. In June 2016 the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," which significantly changes the impairment model for most financial instruments. Current guidance requires the recognition of credit losses based on an incurred loss impairment methodology that reflects losses once the losses are probable. Under ASU 2016-13, the Company will be required to use a current expected credit loss model ("CECL") that will immediately recognize an estimate of credit losses that are expected to occur over the life of the financial instruments that are in the scope of this update, including trade receivables. The CECL model uses a broader range of reasonable and supportable information in the development of credit loss estimates. This guidance becomes effective for the Company on January 1, 2020 including the interim periods in the year. The Company is currently evaluating the impact that the adoption of this ASU will have on the consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, "Leases (ASC Topic 842)." ASC Topic 842, including the related amendments subsequent to its issuance, will supersede the current guidance for lease accounting. Lessees will be required to recognize right-of-use assets and lease liabilities on the balance sheet for most lease arrangements and provide enhanced disclosures. The liability will be equal to the present value of the lease payments and the asset will be based on the liability, subject to certain adjustments, such as for initial direct costs. A dual model was retained for the statement of operations requiring leases to be classified as either operating or financing. Operating leases will result in straight-line expense (similar to current operating leases) while finance leases will result in a front-loaded expense pattern (similar to capital leases). Lessor accounting is similar to the current model but updated to align with certain changes to the lessee model and the new revenue recognition standard. The Company does not have any contracts where it is the lessor. ASC Topic 842 permits the Company to elect either a) a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements or b) a modified retrospective approach recognizing the cumulative effect of the initial application of the new leasing standard as an adjustment to the opening balance of retained earnings as of the date of adoption. The Company will adopt this new standard on January 1, 2019 and has elected to apply the transition provisions at the beginning of the period of adoption and will not restate comparative periods. As permitted under the transition guidance, the Company has elected the package of practical expedients provided in the standard in that it will not reassess the lease classification of existing contracts or leases and it will not reassess the initial direct costs associated with existing leases. The Company will not elect the hindsight practical expedient. Based on the portfolio of leases outstanding as of December 31, 2018 , the Company anticipates recording a right-of-use asset and an offsetting lease liability in the range of $33 million to $43 million on the Company's balance sheet upon adoption. The cumulative effect adjustment recorded to the opening balance of retained earnings is not material to the consolidated balance sheet. The Company does not expect ASC Topic 842 will have a material impact on the Company's consolidated results of operations or cash flows. The Company is substantially complete with its implementation efforts and is currently finalizing its calculations of the adoption impacts as well as policies, processes and internal controls to align with the new standard. Recent accounting guidance not discussed above is not applicable, did not have, or is not expected to have a material impact on the Company. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies and Basis of Presentation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives of Property, Plant and Equipment | Property, plant and equipment are depreciated over the following estimated useful lives: Years Building and improvements 2 — 40 Machinery, equipment and tooling 2 — 20 Furniture and fixtures 3 — 15 Computer hardware and software 2 — 7 |
Schedule of Estimated Useful Lives of Other Intangible Assets | Other intangible assets with finite lives are amortized on a straight-line basis over the following estimated useful lives: Useful lives Patents 10 — 20 years Engineering drawings 15 years Customer relationships 10 — 20 years Design libraries 7 — 20 years |
Schedule of Net Sales By Product Class and Segment | Net sales by product class and segment are as follows: Year Ended December 31, 2018 (in millions) Commercial Foodservice Whole Goods Aftermarket Parts and Support Total Americas $ 907.0 $ 183.9 $ 1,090.9 EMEA 258.8 48.6 307.4 APAC 163.2 28.6 191.8 Total net sales $ 1,329.0 $ 261.1 $ 1,590.1 |
Schedule of Cumulative Effect of New Accounting Pronouncement | The cumulative effect of the changes made to the Company's consolidated balance sheet as of January 1, 2018 for the adoption of ASU 2014-09 is related to the establishment of right to return assets in conjunction with its product return policy as shown below: (in millions) As of December 31, 2017 Adjustments Due to Adoption of ASU 2014-09 As of January 1, 2018 Balance Sheet Assets: Inventories — net $ 152.3 $ 1.1 $ 153.4 Equity: Retained earnings $ 189.1 $ 1.1 $ 190.2 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Consideration Paid and Identified Assets Acquired and Liabilities Assumed | The following table summarizes the consideration paid for Crem and the amounts of the identified assets acquired and liabilities assumed at the acquisition date: (in millions) Total purchase price $ 220.3 Less: cash acquired 4.7 Total purchase price, net of cash acquired $ 215.6 Recognized preliminary amounts of identifiable assets acquired and (liabilities assumed), at fair value: Cash $ 4.7 Accounts receivable 17.2 Inventories 16.9 Prepaids and other current assets 1.9 Property, plant and equipment 4.9 Other intangible assets 131.2 Other non-current assets 2.1 Accounts payable (11.4 ) Accrued expenses and other liabilities (6.0 ) Deferred income taxes (32.8 ) Pension and postretirement health obligations (0.4 ) Other long-term liabilities (5.0 ) Preliminary estimate of the fair value of assets acquired and liabilities assumed 123.3 Allocation to goodwill $ 97.0 |
Schedule of Preliminary Fair Value Estimates of Intangible Assets Other than Goodwill Acquired | The preliminary fair value estimates for the Company's identifiable intangible assets other than goodwill acquired as part of the acquisition are as follows: (in millions) Estimated Fair Values Estimated Useful Life (in years) Weighted Average Amortization Period (in years) Customer relationships $ 64.2 10 10.0 Design libraries 20.6 7 — 20 10.4 Total definite-lived intangible assets 84.8 10.1 Trade name 46.4 Indefinite Total intangible assets $ 131.2 |
Inventories - Net (Tables)
Inventories - Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of the Components of Inventories - Net | The components of "Inventories—net" at December 31, 2018 and 2017 are summarized as follows: December 31, (in millions) 2018 2017 Inventories — gross: Raw materials $ 90.4 $ 73.9 Work-in-process 16.0 18.9 Finished goods 108.8 86.9 Total inventories — gross 215.2 179.7 Excess and obsolete inventory reserve (20.4 ) (23.5 ) Net inventories at FIFO cost 194.8 156.2 Excess of FIFO costs over LIFO value (4.2 ) (3.9 ) Inventories — net $ 190.6 $ 152.3 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Components of Property, Plant and Equipment - Net | The components of "Property, plant and equipment — net" at December 31, 2018 and 2017 are summarized as follows: December 31, (in millions) 2018 2017 Land $ 9.8 $ 9.5 Building and improvements 88.5 88.9 Machinery, equipment and tooling 226.6 227.3 Furniture and fixtures 6.5 6.0 Computer hardware and software 58.3 55.1 Construction in progress 21.1 15.7 Total cost 410.8 402.5 Less accumulated depreciation (291.8 ) (290.3 ) Property, plant and equipment — net $ 119.0 $ 112.2 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets - Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 for the years ended December 31, 2018 , 2017 and 2016 are as follows: (in millions) Americas EMEA APAC Total Gross balance as of December 31, 2016 $ 1,144.8 $ 208.2 $ 8.0 $ 1,361.0 Accumulated asset impairments (312.2 ) (203.5 ) — (515.7 ) Net balance as of December 31, 2016 $ 832.6 $ 4.7 $ 8.0 $ 845.3 Foreign currency impact $ — $ 0.2 $ 0.6 $ 0.8 Gross balance as of December 31, 2017 1,144.8 208.4 8.6 1,361.8 Accumulated asset impairments (312.2 ) (203.5 ) — (515.7 ) Net balance as of December 31, 2017 $ 832.6 $ 4.9 $ 8.6 $ 846.1 Impact of acquisition $ — $ 84.2 $ 12.8 $ 97.0 Foreign currency impact — (6.0 ) (1.5 ) (7.5 ) Gross balance as of December 31, 2018 1,144.8 286.6 19.9 1,451.3 Accumulated asset impairments (312.2 ) (203.5 ) — (515.7 ) Net balance as of December 31, 2018 $ 832.6 $ 83.1 $ 19.9 $ 935.6 |
Changes in Gross Carrying Amount and Balances of Definite-Lived Intangible Assets | The gross carrying amount and accumulated amortization of the Company's intangible assets other than goodwill are as follows as of December 31, 2018 and 2017 : 2018 2017 (in millions) Gross Accumulated Net Gross Accumulated Net Trademarks and trade names $ 218.7 $ — $ 218.7 $ 177.5 $ — $ 177.5 Customer relationships 474.8 (217.4 ) 257.4 415.3 (192.3 ) 223.0 Patents 5.8 (1.7 ) 4.1 2.8 (1.7 ) 1.1 Other intangibles 162.4 (95.9 ) 66.5 144.9 (85.1 ) 59.8 Total $ 861.7 $ (315.0 ) $ 546.7 $ 740.5 $ (279.1 ) $ 461.4 |
Changes in Gross Carrying Amount and Balances of Indefinite-Lived Intangible Assets | The gross carrying amount and accumulated amortization of the Company's intangible assets other than goodwill are as follows as of December 31, 2018 and 2017 : 2018 2017 (in millions) Gross Accumulated Net Gross Accumulated Net Trademarks and trade names $ 218.7 $ — $ 218.7 $ 177.5 $ — $ 177.5 Customer relationships 474.8 (217.4 ) 257.4 415.3 (192.3 ) 223.0 Patents 5.8 (1.7 ) 4.1 2.8 (1.7 ) 1.1 Other intangibles 162.4 (95.9 ) 66.5 144.9 (85.1 ) 59.8 Total $ 861.7 $ (315.0 ) $ 546.7 $ 740.5 $ (279.1 ) $ 461.4 |
Schedule of Estimated Amortization of Intangible Assets | As of December 31, 2018 , the estimated future amortization of intangible assets, other than goodwill, excluding the impact of any future acquisitions or divestitures is as follows: (in millions) Year ending December 31: 2019 $ 35.8 2020 35.6 2021 35.6 2022 33.7 2023 29.0 Thereafter 158.3 $ 328.0 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Expenses and Other Liabilities | Accounts payable and accrued expenses and other liabilities at December 31, 2018 and 2017 are summarized as follows: December 31, (in millions) 2018 2017 Accounts payable: Trade accounts payable $ 151.0 $ 103.6 Total accounts payable $ 151.0 $ 103.6 Accrued expenses and other liabilities: Interest payable $ 2.2 $ 7.8 Income taxes payable 10.2 13.9 Employee related expenses 30.0 30.8 Restructuring expenses 3.0 5.0 Profit sharing and incentives 19.9 11.5 Accrued rebates 50.8 50.0 Deferred revenue — current 2.7 4.2 Customer advances 3.1 2.6 Product liability 1.3 1.4 Derivative liability 18.4 1.2 Miscellaneous accrued expenses 42.1 41.1 Total accrued expenses and other liabilities $ 183.7 $ 169.5 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Summary of Earnings before Income Taxes | "Earnings before income taxes" in the consolidated statements of operations is comprised of the following for the years ended December 31, 2018 , 2017 and 2016 : (in millions) 2018 2017 2016 Domestic $ (8.0 ) $ 32.5 $ 31.5 Foreign 97.0 88.9 70.7 Total $ 89.0 $ 121.4 $ 102.2 |
Schedule of the Components of Income Taxes | "Income taxes" in the consolidated statements of operations is comprised of the following for the years ended December 31, 2018 , 2017 and 2016 : (in millions) 2018 2017 2016 Current: Federal and state $ (4.3 ) $ 28.2 $ 19.7 Foreign 29.1 24.6 18.6 Total current tax expense 24.8 52.8 38.3 Deferred: Federal and state (14.0 ) (56.6 ) (9.2 ) Foreign — (7.7 ) 1.6 Total deferred tax benefit (14.0 ) (64.3 ) (7.6 ) Total: Federal and State (18.3 ) (28.4 ) 10.5 International 29.1 16.9 20.2 Income taxes $ 10.8 $ (11.5 ) $ 30.7 |
Reconciliation of the U.S. Federal Statutory Income Tax Rate | A reconciliation of the U.S. federal statutory income tax rate to the Company's effective tax rate is as follows for the years ended December 31, 2018 , 2017 and 2016 : 2018 2017 2016 Federal income tax at statutory rate 21.0 % 35.0 % 35.0 % State income provision (benefit) 0.5 (2.6 ) 0.9 Manufacturing and research incentives (3.1 ) (1.7 ) (1.9 ) Taxes on foreign income 7.6 (3.5 ) (4.8 ) Repatriation of foreign income - Tax Act (11.2 ) 11.1 — Change in federal income tax statutory rate - Tax Act — (37.5 ) — Global intangible low taxed income 1.5 — — Foreign derived intangible income (1.3 ) — — Adjustments for valuation allowances (0.2 ) (11.2 ) 2.5 Discrete adjustments (2.6 ) — — Other items (0.1 ) 0.9 (1.7 ) Effective tax rate 12.1 % (9.5 )% 30.0 % |
Schedules of Significant Deferred Tax Assets and Liabilities | Significant components of the Company’s non-current deferred tax assets and liabilities as of December 31, 2018 and 2017 were as follows: (in millions) 2018 2017 Non-current deferred tax assets (liabilities): Inventories $ 2.8 $ 3.5 Accounts receivable 1.0 0.9 Property, plant and equipment (3.7 ) (2.4 ) Intangible assets (139.3 ) (118.0 ) Deferred employee benefits 20.1 19.9 Product warranty reserves 7.6 7.5 Product liability reserves 2.6 2.2 Loss carryforwards 40.6 41.3 Other 19.3 12.9 Non-current deferred tax liabilities (49.0 ) (32.2 ) Less valuation allowance (40.7 ) (41.0 ) Net non-current deferred tax liabilities $ (89.7 ) $ (73.2 ) Current and long-term tax assets and liabilities included in the consolidated balance sheets are comprised of the following as of December 31, 2018 and 2017 : (in millions) 2018 2017 Financial Statement Line Item Income tax receivable $ 15.6 $ 4.3 Prepaids and other current assets Deferred tax asset 14.6 18.1 Other non-current assets Income taxes payable (10.2 ) (13.9 ) Accrued expenses and other liabilities Income taxes payable (0.9 ) (12.5 ) Other long-term liabilities Deferred tax liabilities (104.3 ) (91.3 ) Deferred income taxes |
Reconciliation of Unrecognized Tax Benefits | reconciliation of the Company's unrecognized tax benefits is as follows for the years ended December 31, 2018 , 2017 and 2016 : (in millions) 2018 2017 2016 Balance at beginning of year $ 12.3 $ 12.5 $ 16.6 Additions based on tax positions related to the current year — — 0.8 Additions for tax positions of prior years 3.3 0.2 1.0 Reductions for tax positions of prior years (4.1 ) (0.4 ) — Reductions for equity adjustments — — (4.3 ) Reductions for lapse of statute — — (1.6 ) Balance at end of year $ 11.5 $ 12.3 $ 12.5 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | Outstanding debt at December 31, 2018 and 2017 is summarized as follows: (in millions, except percentage data) 2018 Weighted Average Interest Rate 2017 Weighted Average Interest Rate Revolving loan facility $ 15.0 4.06 % $ — — % Revolving credit facility 78.0 4.70 % 25.0 4.41 % Term Loan B facility 855.0 5.22 % 815.0 4.90 % 9.50% Senior Notes due 2024 425.0 9.72 % 425.0 9.72 % Capital leases 2.8 4.50 % 2.7 4.17 % Total debt and capital leases, including current portion 1,375.8 1,267.7 Less: Revolving loan facility (15.0 ) — Current portion of capital leases (1.1 ) (0.7 ) Unamortized debt issuance costs (1) (24.2 ) (26.4 ) Hedge accounting fair value adjustment (2) (13.7 ) (8.4 ) Total long-term debt and capital leases $ 1,321.8 $ 1,232.2 (1) Total outstanding debt issuance costs, net of amortization as of December 31, 2018 and 2017 was $27.3 million and $28.6 million , respectively, of which $3.1 million and $2.2 million , respectively, was related to the revolving credit facility and recorded in "Other non-current assets" in the consolidated balance sheets. (2) Represents the change in fair value due to changes in benchmark interest rates related to the Company's Senior Notes due 2024. Refer to Note 11, "Derivative Financial Instruments," for additional information on the Company's interest rate swap designated as a fair value hedge. |
Maturities of Debt | Maturities of debt, excluding capital leases, are as follows as of December 31, 2018 : (in millions) Year ending December 31: 2019 $ 15.0 2020 — 2021 3.3 2022 3.3 2023 81.3 Thereafter 1,270.1 $ 1,373.0 |
Senior Note Redemption Prices | In addition, the Company may redeem the Senior note at its option, in whole or in part, at the following redemption prices (expressed as percentages of the principal amount thereof) if redeemed during the 12-month period commencing on February 15 of the years set forth below: Year Percentage 2019 107.125 % 2020 104.750 % 2021 102.375 % 2022 and thereafter 100.000 % |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Outstanding Commodity and Currency Forward Contracts | As of December 31, 2018 , 2017 and 2016 , the Company had the following outstanding currency forward contracts that were not designated as hedging instruments: Units Hedged Commodity: 2018 2017 2016 Unit Aluminum — — 28 MT Steel — — 340 Short tons Units Hedged Currency: 2018 2017 2016 European Euro 69,700,000 69,300,000 16,000,000 Swiss Franc 5,300,000 4,800,000 3,150,000 British Pound 23,704,468 14,912,019 8,192,692 Singapore Dollar 28,447,000 28,127,000 — The location and effects on the consolidated statements of operations for the years ended December 31, 2018 , 2017 , 2016 and for gains or losses related to derivative instruments not designated as hedging instruments were as follows: Derivatives NOT designated as hedging instruments (in millions) Amount of gain (loss) recognized in income on derivative Location of gain (loss) recognized in income on derivative Year Ended 2018 2017 2016 Foreign currency exchange contracts $ (9.7 ) $ (6.5 ) $ (0.2 ) Other expense — net Commodity contracts — short-term — — 0.8 Other expense — net Total $ (9.7 ) $ (6.5 ) $ 0.6 As of December 31, 2018 , 2017 and 2016 , the Company had the following outstanding commodity and currency forward contracts that were entered into as hedges of forecasted transactions: Units Hedged Commodity: 2018 2017 2016 Unit Aluminum 1,446 1,620 1,663 MT Copper 546 667 746 MT Natural gas — — 56,416 MMBtu Steel 7,080 7,713 8,663 Short tons Units Hedged Currency: 2018 2017 2016 Canadian Dollar 10,990,000 18,080,000 26,130,000 European Euro 9,878,000 8,545,000 11,261,848 British Pound 12,041,770 7,807,744 4,191,763 Mexican Peso 175,960,000 126,400,000 148,200,000 Thailand Baht — — 23,231,639 Singapore Dollar 1,480,000 1,765,000 4,375,000 |
Schedule of the Effect of Derivative Instruments on the Consolidated Statement of Operations for Gains or Losses Initially Recognized in Other Comprehensive Income (OCI) in the Consolidated Balance Sheet | The effects of derivative instruments on the consolidated statements of comprehensive income and consolidated statements of operations for the years ended December 31, 2018 , 2017 and 2016 for gains or losses initially recognized in AOCI in the consolidated balance sheets were as follows: Derivatives in cash flow hedging relationships (in millions) Pretax gain (loss) recognized in AOCI (effective portion) Location of gain (loss) reclassified from AOCI into income (effective portion) Pretax gain (loss) reclassified from AOCI into income (effective portion) Location of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) 2018 2017 2016 2018 2017 2016 2018 2017 2016 Foreign currency exchange contracts $ (2.2 ) $ 3.8 $ (0.1 ) Cost of sales $ (0.7 ) $ 3.3 $ — Cost of sales $ — $ — $ — Commodity contracts (1.0 ) 2.4 2.2 Cost of sales 2.3 1.1 (1.5 ) Cost of sales 0.1 0.2 — Interest rate swap contracts 1.5 2.8 — Interest expense — — — Interest expense — — — Total $ (1.7 ) $ 9.0 $ 2.1 $ 1.6 $ 4.4 $ (1.5 ) $ 0.1 $ 0.2 $ — The location and effects of the cross-currency interest rate swap contract on the consolidated statements of comprehensive income and consolidated statements of operations for the years ended December 31, 2018 , 2017 and 2016 for gains or losses initially recognized in AOCI in the consolidated balance sheets were as follows: Derivatives in net investments hedging relationships (in millions) Pretax gain (loss) recognized in AOCI (effective portion) Location of gain (loss) reclassified from AOCI into income (effective portion) Amount of gain (loss) reclassified from AOCI into income (effective portion) 2018 2017 2016 2018 2017 2016 Interest rate swap contract $ 2.7 $ (7.5 ) $ — N/A $ — $ — $ — Total $ 2.7 $ (7.5 ) $ — $ — $ — $ — |
Schedule of Gain or Loss on the Hedged Items | The gain or loss on the hedged item (i.e., fixed-rate borrowing of the Senior Notes) attributable to the hedged benchmark interest rate risk (risk of changes in the applicable LIBOR swap rate) and the offsetting gain or loss on the related interest rate swap is as follows: Derivatives in fair value hedging relationships (in millions) Loss on Swap Income Statement Classification Gain on Borrowings 2018 2017 2016 2018 2017 2016 Interest rate swap contract $ (4.0 ) $ (9.0 ) $ — Interest expense $ 5.3 $ 8.7 $ — Total $ (4.0 ) $ (9.0 ) $ — $ 5.3 $ 8.7 $ — |
Schedule of the Fair Value of Outstanding Derivative Contracts Recorded as Assets in the Accompanying Consolidated Balance Sheet | The fair value of outstanding derivative contracts recorded as assets in the consolidated balance sheets as of December 31, 2018 and 2017 was as follows: Asset Derivatives (in millions) Balance Sheet Location Fair Value 2018 2017 Derivatives designated as hedging instruments: Foreign currency exchange contracts Prepaids and other current assets $ 0.5 $ 1.1 Commodity contracts Prepaids and other current assets 0.2 1.7 Interest rate swap contracts Prepaids and other current assets 4.8 1.7 Commodity contracts Other non-current assets — 0.6 Interest rate swap contracts Other non-current assets 3.4 2.3 Total derivatives designated as hedging instruments $ 8.9 $ 7.4 Derivatives NOT designated as hedging instruments: Foreign currency exchange contracts Prepaids and other current assets 0.1 — Total derivatives NOT designated as hedging instruments $ 0.1 $ — Total asset derivatives $ 9.0 $ 7.4 |
Schedule of the Fair Value of Outstanding Derivative Contracts Recorded as Liabilities in the Accompanying Consolidated Balance Sheet | The fair value of outstanding derivative contracts recorded as liabilities in the consolidated balance sheets as of December 31, 2018 and 2017 was as follows: Liability Derivatives (in millions) Balance Sheet Location Fair Value 2018 2017 Derivatives designated as hedging instruments: Foreign currency exchange contracts Accrued expenses and other liabilities $ 1.5 $ 0.6 Commodity contracts Accrued expenses and other liabilities 0.9 0.1 Interest rate swap contracts Accrued expenses and other liabilities 15.7 — Commodity contracts Other long-term liabilities 0.4 — Interest rate swap contracts Other long-term liabilities 5.9 17.7 Total derivatives designated as hedging instruments $ 24.4 $ 18.4 Derivatives NOT designated as hedging instruments: Foreign currency exchange contracts Accrued expenses and other liabilities $ 0.3 $ 0.5 Total derivatives NOT designated as hedging instruments $ 0.3 $ 0.5 Total liability derivatives $ 24.7 $ 18.9 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
Financial Assets and Liabilities Accounted for at Fair Value on a Recurring Basis by Level within the Fair Value Hierarchy | The following tables set forth financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2018 and 2017 by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Fair Value as of December 31, 2018 (in millions) Level 1 Level 2 Level 3 Total Current assets: Short-term investment $ — $ 32.0 $ — $ 32.0 Foreign currency exchange contracts — 0.6 — 0.6 Commodity contracts — 0.2 — 0.2 Interest rate swap contracts — 4.8 — 4.8 Total current assets at fair value — 37.6 — 37.6 Non-current assets: Interest rate swap contracts — 3.4 — 3.4 Total non-current assets at fair value — 3.4 — 3.4 Total assets at fair value $ — $ 41.0 $ — $ 41.0 Current liabilities: Foreign currency exchange contracts $ — $ 1.8 $ — $ 1.8 Commodity contracts — 0.9 — 0.9 Interest rate swap contracts — 15.7 — 15.7 Total current liabilities at fair value — 18.4 — 18.4 Non-current liabilities: Commodity contracts — 0.4 — 0.4 Interest rate swap contracts — 5.9 — 5.9 Total non-current liabilities at fair value — 6.3 — 6.3 Total liabilities at fair value $ — $ 24.7 $ — $ 24.7 Fair Value as of December 31, 2017 (in millions) Level 1 Level 2 Level 3 Total Current assets: Short-term investment $ — $ 19.9 $ — $ 19.9 Foreign currency exchange contracts — 1.1 — 1.1 Commodity contracts — 1.7 — 1.7 Interest rate swap contracts — 1.7 — 1.7 Total current assets at fair value — 24.4 — 24.4 Non-current assets: Commodity contracts — 0.6 — 0.6 Interest rate swap contracts — 2.3 — 2.3 Total non-current assets at fair value — 2.9 — 2.9 Total assets at fair value $ — $ 27.3 $ — $ 27.3 Current liabilities: Foreign currency exchange contracts $ — $ 1.1 $ — $ 1.1 Commodity contracts — 0.1 — 0.1 Total current liabilities at fair value — 1.2 — 1.2 Non-current liabilities: Interest rate swap contracts — 17.7 — 17.7 Total non-current liabilities at fair value — 17.7 — 17.7 Total liabilities at fair value $ — $ 18.9 $ — $ 18.9 |
Product Warranties (Tables)
Product Warranties (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Guarantees [Abstract] | |
Summary of Warranty Activity | Below is a table summarizing the product warranty activity for the years ended December 31, 2018 and 2017 : (in millions) 2018 2017 Balance at the beginning of the period $ 36.0 $ 36.3 Accruals for warranties issued 39.5 33.3 Settlements made (in cash or in kind) (35.1 ) (34.4 ) Currency translation impact (0.7 ) 0.8 Balance at the end of the period (1) $ 39.7 $ 36.0 (1) Long-term warranty liabilities are included in "Other long-term liabilities" and totaled $11.8 million and $11.9 million at December 31, 2018 and 2017 , respectively. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Period Benefit Costs | The components of periodic benefit costs for the Direct Plans for the years ended December 31, 2018 , 2017 and 2016 are as follows: Pension Plans Postretirement Health (in millions, except percentage data) 2018 2017 2016 2018 2017 2016 Service cost - benefits earned during the year $ 0.1 $ — $ 0.2 $ — $ — $ — Interest cost of projected benefit obligation 5.2 5.4 8.3 0.3 0.3 0.4 Expected return on assets (5.8 ) (6.2 ) (6.2 ) — — — Amortization of actuarial net loss 2.2 2.0 2.5 0.2 — — Settlement loss recognized 2.4 — — — — — Net periodic benefit cost $ 4.1 $ 1.2 $ 4.8 $ 0.5 $ 0.3 $ 0.4 Weighted average assumptions: Discount rate 2.8 % 3.1 % 3.9 % 3.2 % 3.5 % 3.9 % Expected return on plan assets 3.2 % 3.6 % 3.7 % N/A N/A N/A Rate of compensation increase 2.0 % — % 4.0 % 1.5 % 1.5 % 1.5 % |
Reconciliation of the Changes in Benefit Obligation, the Changes in Plan Assets, and the Funded Status | The following is a reconciliation of the changes in benefit obligation, the changes in plan assets and the funded status of the Direct Plans as of December 31, 2018 and 2017 : Pension Plans Postretirement Health (in millions, except percentage data) 2018 2017 2018 2017 Change in Benefit Obligations Benefit obligation, beginning of year $ 216.8 $ 203.9 $ 10.1 $ 9.0 Service cost 0.1 — — — Interest cost 5.2 5.4 0.3 0.3 Participant contributions — — 0.7 0.6 Plan settlements (7.9 ) — — — Plan amendments (0.6 ) — (1.5 ) — Acquisition 0.6 — — — Actuarial (gain)/loss (9.0 ) 7.7 0.5 1.7 Currency translation adjustment (7.4 ) 13.8 (0.1 ) 0.1 Benefits paid (11.3 ) (14.0 ) (2.7 ) (1.6 ) Benefit obligation, end of year $ 186.5 $ 216.8 $ 7.3 $ 10.1 Change in Plan Assets Fair value of plan assets, beginning of year $ 176.7 $ 163.8 $ — $ — Actual return on plan assets (6.8 ) 9.2 — — Employer contributions 8.4 5.4 2.0 1.0 Participant contributions — — 0.7 0.6 Plan settlements (7.9 ) — — — Currency translation adjustment (6.7 ) 12.3 — — Acquisition 0.2 — — — Benefits paid (11.3 ) (14.0 ) (2.7 ) (1.6 ) Fair value of plan assets, end of year $ 152.6 $ 176.7 $ — $ — Unfunded status (1) $ (33.9 ) $ (40.1 ) $ (7.3 ) $ (10.1 ) Weighted-Average Assumptions Discount rate 3.3 % 2.8 % 3.8 % 3.2 % Rate of compensation increase 2.0 % — % 3.0 % 1.5 % (1) As of December 31, 2018 and 2017 , the short-term portion of the pension obligation totaled $0.9 million and $0.7 million , respectively and postretirement health and other benefit obligation totaled $1.1 million , and $1.2 million , respectively. These short-term obligations are included in "Accrued expenses and other liabilities." |
Amounts Recognized in Accumulated Other Comprehensive Income | Amounts recognized in AOCI as of December 31, 2018 and 2017 , consist of the following: Pension Plans Postretirement (in millions) 2018 2017 2018 2017 Net actuarial loss $ (41.8 ) $ (44.3 ) $ (2.5 ) $ (2.2 ) Prior service credit 0.6 — 1.5 — Total amount recognized $ (41.2 ) $ (44.3 ) $ (1.0 ) $ (2.2 ) |
Summary of the Sensitivity of Retirement Obligations and Retirement Benefit Costs of Plans to Changes in the Key Assumptions | The following table summarizes the sensitivity of the Company's December 31, 2018 retirement obligations and 2018 retirement benefit costs of its plans to changes in the key assumptions used to determine those results (in millions): Change in assumption: Estimated increase Estimated increase Estimated increase Estimated increase 0.5% increase in discount rate $ (0.5 ) $ (13.3 ) $ — $ (0.2 ) 0.5% decrease in discount rate 0.6 14.5 — 0.2 0.5% increase in long-term return on assets (0.7 ) N/A N/A N/A 0.5% decrease in long-term return on assets 0.7 N/A N/A N/A |
Schedule of the Weighted-Average Asset Allocations of the Pension Plans | The weighted-average asset allocations of the pension plans at December 31, 2018 and 2017 , by asset category are as follows: 2018 2017 Equity 14.2 % 17.6 % Debt securities 32.1 % 34.6 % Other 53.7 % 47.8 % 100.0 % 100.0 % |
Schedule of the Actual Allocations for the Pension Assets and Target Allocations by Asset Class | The actual allocations for the pension assets at December 31, 2018 , and target allocations by asset class, are as follows: Target Allocations Weighted Average Asset Allocations Equity securities 18.5 % 14.2 % Debt securities 38.9 % 32.1 % Other 42.6 % 53.7 % |
Schedule of Plan Assets Using the Fair Value Hierarchy | The following table presents the Company's plan assets using the fair value hierarchy as of December 31, 2018 and 2017 . The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Level 1 refers to fair values determined based on quoted prices in active markets for identical assets. Level 2 refers to fair values estimated using significant other observable inputs, and Level 3 includes fair values estimated using significant non-observable inputs. December 31, 2018 Assets (in millions) Quoted Prices in Significant Other Unobservable Total Cash and cash equivalents $ 6.1 $ — $ — $ 6.1 Insurance group annuity contracts — — 65.6 65.6 Common/collective trust funds — Government, corporate and other non-government debt — 49.0 — 49.0 Common/collective trust funds — Corporate equity — 21.7 — 21.7 Common/collective trust funds — Customized strategy — 10.2 — 10.2 Total $ 6.1 $ 80.9 $ 65.6 $ 152.6 December 31, 2017 Assets (in millions) Quoted Prices in Significant Other Unobservable Total Cash and cash equivalents $ 2.4 $ — $ — $ 2.4 Insurance group annuity contracts — — 74.6 74.6 Common/collective trust funds — Government, corporate and other non-government debt — 63.2 — 63.2 Common/collective trust funds — Corporate equity — 30.4 — 30.4 Common/collective trust funds — Customized strategy — 6.1 — 6.1 Total $ 2.4 $ 99.7 $ 74.6 $ 176.7 |
Reconciliation of the Fair Values Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) from the Beginning of the Year to the End of the Year | A reconciliation of the fair value measurements of plan assets using significant unobservable inputs (Level 3) from the beginning of the year to the end of the year is as follows: Insurance Contracts (in millions) 2018 2017 Beginning Balance $ 74.6 $ 72.2 Acquisition 0.2 — Contributions 0.1 — Actual return on assets (1.2 ) — Benefit payments (4.6 ) (4.6 ) Foreign currency impact (3.5 ) 7.0 Ending Balance $ 65.6 $ 74.6 |
Schedule of Projected Benefit Payments from the Plans | Projected benefit payments from the plans as of December 31, 2018 are estimated as follows: (in millions) Pension Plans Postretirement 2019 $ 16.0 $ 1.1 2020 11.1 1.0 2021 11.4 1.0 2022 11.7 1.1 2023 12.2 0.9 2024-2028 65.9 2.4 |
Fair Value of Plan Assets for Which the Accumulated Benefit Obligation is in Excess of the Plan Assets | The fair value of plan assets for which the accumulated benefit obligation is in excess of the plan assets as of December 31, 2018 and 2017 is as follows: Pension Plans (in millions) 2018 2017 Projected benefit obligation $ 186.5 $ 216.8 Accumulated benefit obligation 186.5 216.8 Fair value of plan assets 152.6 176.7 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Rollforward of all Restructuring Activities | The following is a rollforward of all restructuring activities related to the Company for the year ended December 31, 2018 and 2017 : (in millions) 2018 2017 Balance at January 1 $ 16.1 $ 14.4 Restructuring charges 6.0 10.8 Use of reserve (8.7 ) (6.2 ) Non-cash adjustment (1) (0.3 ) (2.9 ) Balance at December 31 $ 13.1 $ 16.1 ( 1) This non-cash adjustment represents the non-cash stock-based compensation expense recognized during the years ended December 31, 2018 and 2017 resulting from the accelerated vesting of certain stock awards in connection with restructuring actions. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of Components Accumulated Other Comprehensive Income (Loss) | The components of "Accumulated other comprehensive loss" as of December 31, 2018 and 2017 are as follows: (in millions) 2018 2017 Foreign currency translation, net of income tax benefit of $2.1 million and $2.8 million at December 31, 2018 and 2017, respectively $ (6.5 ) $ 4.4 Derivative instrument fair market value, net of income tax expense of $1.3 million and $1.8 million at December 31, 2018 and 2017, respectively 0.8 3.6 Employee pension and postretirement benefit adjustments, net of income tax benefit of $6.3 million and $6.5 million at December 31, 2018 and 2017, respectively (35.9 ) (40.0 ) $ (41.6 ) $ (32.0 ) A summary of the changes in "Accumulated other comprehensive loss," net of tax, by component for the years ended December 31, 2018 , 2017 and 2016 are as follows: (in millions) Foreign Currency Translation (1) Gains and Losses on Cash Flow Hedges Pension & Postretirement Total Balance at December 31, 2015 $ (7.9 ) $ (1.8 ) $ (34.8 ) $ (44.5 ) Other comprehensive (loss) income before reclassifications (1.9 ) 2.1 (1.5 ) (1.3 ) Amounts reclassified out — 1.5 2.5 4.0 Tax effect — (1.0 ) (0.6 ) (1.6 ) Net current period other comprehensive (loss) income (1.9 ) 2.6 0.4 1.1 Balance at December 31, 2016 (9.8 ) 0.8 (34.4 ) (43.4 ) Other comprehensive income (loss) before reclassifications 11.4 9.0 (7.8 ) 12.6 Amounts reclassified out — (4.4 ) 2.0 (2.4 ) Tax effect 2.8 (1.8 ) 0.2 1.2 Net current period other comprehensive income (loss) 14.2 2.8 (5.6 ) 11.4 Balance at December 31, 2017 4.4 3.6 (40.0 ) (32.0 ) Other comprehensive loss before reclassifications (10.2 ) (1.7 ) (0.5 ) (12.4 ) Amounts reclassified out — (1.6 ) 4.8 3.2 Tax effect (0.7 ) 0.5 (0.2 ) (0.4 ) Net current period other comprehensive (loss) income (10.9 ) (2.8 ) 4.1 (9.6 ) Balance at December 31, 2018 $ (6.5 ) $ 0.8 $ (35.9 ) $ (41.6 ) (1) Income taxes are not provided for foreign translation relating to permanent investments in international subsidiaries, but tax effects within cumulative translation does include the impact of the net investment hedge transaction. Reclassification adjustments are made to avoid double counting in comprehensive income items that are also recorded as part of net income. |
Reclassification out of Accumulated Other Comprehensive Income | A reconciliation of the reclassifications out of AOCI, net of tax, for the years ended December 31, 2018 , 2017 and 2016 are as follows: (in millions) 2018 2017 2016 Recognized Location Gains (losses) on cash flow hedges: Foreign currency exchange contracts $ (0.7 ) $ 3.3 $ — Cost of sales Commodity contracts 2.3 1.1 (1.5 ) Cost of sales Total before tax $ 1.6 $ 4.4 (1.5 ) Tax effect (0.3 ) (1.6 ) 0.6 Income Taxes Net of tax $ 1.3 $ 2.8 $ (0.9 ) Amortization of pension and postretirement items: Actuarial losses $ (2.4 ) $ (2.0 ) $ (2.5 ) Note 15, "Employee Benefit Plans" Pension settlement (2.4 ) — — Note 15, "Employee Benefit Plans" Total before tax $ (4.8 ) (2.0 ) $ (2.5 ) Tax effect 0.8 0.7 1.0 Income Taxes Net of tax $ (4.0 ) $ (1.3 ) $ (1.5 ) Total reclassifications for the period $ (2.7 ) $ 1.5 $ (2.4 ) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Future Minimum Rental Obligations Under Non-Cancelable Operating Leases | Future minimum rental obligations under non-cancelable operating leases as of December 31, 2018 are payable as follows: (in millions) Year ending December 31: 2019 $ 15.1 2020 10.8 2021 6.7 2022 3.6 2023 1.5 Thereafter 5.9 $ 43.6 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | Stock-based compensation expense was recorded in the aforementioned financial statement line items for the three years ended December 31, 2018 , 2017 and 2016 as follows: Years Ended December 31, (in millions) 2018 2017 2016 Stock-based compensation expense: Selling, general and administrative expenses $ 6.6 $ 8.1 $ 4.7 Separation expense 0.1 0.1 1.6 Restructuring expense 0.3 2.9 — Total stock-based compensation expense $ 7.0 $ 11.1 $ 6.3 Stock-based compensation expense by award type was as follows for the periods indicated: Years Ended December 31, (in millions) 2018 2017 2016 Stock-based compensation expense: Stock options $ 1.5 $ 3.0 $ 1.2 Restricted stock awards and units 3.0 3.6 3.0 Performance share units 2.5 4.5 2.1 Total stock-based compensation expense $ 7.0 $ 11.1 $ 6.3 |
Summary of the Company's Stock Option Activity | A summary of the Company's stock option activity for all holders of Welbilt stock options is as follows: (in millions, except weighted average exercise price and contractual life) Options Weighted Weighted Average Remaining Contractual Life (Years) Aggregate Options outstanding as of January 1, 2018 2.7 $ 15.95 4.9 $ 22.9 Granted 0.4 20.26 Exercised (0.5 ) 13.63 Forfeited (0.2 ) 17.69 Canceled (0.3 ) 30.00 Options outstanding as of December 31, 2018 (1) 2.1 $ 14.85 4.9 $ 1.5 Options vested or expected to vest as of December 31, 2018 (2) 2.0 $ 14.82 4.9 $ 1.5 Options exercisable as of December 31, 2018 1.6 $ 13.83 4.0 $ 1.5 (1) The outstanding stock options at December 31, 2018 have a range of exercise prices from $3.51 to $31.14 per share. (2) Number of options expected to vest is total unvested options less estimated forfeitures. The following represents stock option compensation information for the periods indicated: Years Ended December 31, (in millions, except weighted average grant date fair value per option granted) 2018 2017 2016 Weighted average grant date fair value per option granted $ 6.84 $ 7.86 $ 5.97 Fair value of options vested 1.7 3.0 2.8 Intrinsic value of options exercised 3.3 7.5 8.5 Excess tax benefit for tax deductions related to the exercise of stock options 0.8 1.2 — Cash received from option exercises, net of tax withholding 5.1 1.9 12.9 Tax benefits for stock-option compensation expense 0.4 0.7 0.5 |
Schedule of the Assumptions Used to Estimate the Fair Value of Options Granted | The assumptions used in the Black-Scholes option pricing model and the weighted average fair value of option awards granted were as follows for the periods indicated: Years Ended December 31, 2018 2017 2016 Expected life (years) 6.0 6.0 6.0 Risk-free interest rate 2.7 % 2.3 % 1.6 % Expected volatility 29.0 % 39.0 % 39.0 % Expected dividend yield — % — % — % |
Summary of Activity for Restricted Stock Units and Performance Shares | A summary of activity for all of the Company's performance share units for the year ended December 31, 2018 is as follows: (in millions, except weighted average grant date fair value) Performance Share Units Weighted Unvested as of January 1, 2018 0.5 $ 16.87 Granted 0.4 20.25 Vested (1) (0.2 ) 15.01 Forfeited (0.3 ) 17.86 Unvested as of December 31, 2018 0.4 $ 19.57 (1) The vested PSUs presented are based on the target amount of the award for the 2016 Program. In accordance with the terms of the underlying award agreements, the actual shares earned and distributed for the three -year performance period ended December 31, 2018 were 142.3% . |
Schedule of Restricted Stock Units Compensation | The following represents restricted stock compensation information for the periods indicated: Years Ended December 31, (in millions, except weighted average grant date fair value per award granted) 2018 2017 2016 Weighted average grant date fair value per award granted $ 18.15 $ 21.39 $ 15.25 Fair value of awards vested 8.1 4.0 2.8 Tax benefits for restricted stock compensation expense 0.7 0.8 1.2 |
Schedule of Performance Based Unit Programs | As of December 31, 2018 , the following PSU programs were in progress: Award Date PSUs Outstanding (in millions) Expected Vesting Threshold 2017 Program 0.2 100.0 % 2018 Program 0.2 100.0 % Total PSUs outstanding 0.4 |
Schedule of Performance Share Unit Compensation | The following represents PSU compensation information for the periods indicated: Years Ended December 31, (in millions, except weighted average grant date fair value per award granted) 2018 2017 2016 Weighted average grant date fair value per award granted $ 20.25 $ 18.70 $ 14.97 Fair value of awards vested 2.6 3.0 3.6 Tax benefits for PSU compensation expense 0.6 1.0 0.8 |
Other Expense - Net (Tables)
Other Expense - Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Income and Expenses [Abstract] | |
Summary of the Components of Other Operating Expense | The components of "Other expense — net" in the consolidated statements of operations for the years ended December 31, 2018 , 2017 and 2016 are summarized as follows: (in millions) 2018 2017 2016 Foreign currency transaction losses (1) $ 20.1 $ 6.5 $ 4.0 Amortization of debt issuance costs 5.5 5.5 4.7 Other 4.2 (1.4 ) 5.3 Other expense — net $ 29.8 $ 10.6 $ 14.0 (1) Foreign currency transaction losses include the loss of $10.0 million on the foreign currency hedge of the acquisition price of Crem incurred during the year ended December 31, 2018. Refer to Note 3, "Acquisitions and Divestitures," for additional discussion. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of the Numerator and Denominator used to Compute Basic and Diluted EPS | The following is a reconciliation of the weighted average shares outstanding used to compute basic and diluted earnings per share. Years Ended December 31, (in millions, except share and per share data) 2018 2017 2016 Net earnings $ 78.2 $ 132.9 $ 71.5 Weighted average shares outstanding — Basic 140,023,635 138,995,541 137,906,284 Effect of dilutive securities: Stock options 585,270 840,820 945,140 Unvested restricted stock 437,720 610,148 626,144 Unvested performance share units 342,160 260,583 236,552 Effect of dilutive securities 1,365,150 1,711,551 1,807,836 Weighted average shares outstanding — Diluted 141,388,785 140,707,092 139,714,120 Earnings per share — Basic $ 0.56 $ 0.96 $ 0.52 Earnings per share — Diluted $ 0.55 $ 0.94 $ 0.51 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Financial Information Relating to Reportable Segments | Financial information relating to the Company's reportable segments as of and for the years ended December 31, 2018 , 2017 and 2016 respectively, is as follows: Years Ended December 31, (in millions, except percentage data) 2018 2017 2016 Net sales Americas $ 1,228.4 $ 1,166.8 $ 1,186.1 EMEA 385.1 296.5 287.6 APAC 229.1 190.2 190.9 Elimination of intersegment sales (252.5 ) (208.1 ) (208.5 ) Total net sales $ 1,590.1 $ 1,445.4 $ 1,456.1 Segment Adjusted Operating EBITDA: Americas $ 233.1 $ 240.7 $ 233.6 EMEA 78.4 55.2 44.3 APAC 31.2 22.7 24.7 Total Segment Adjusted Operating EBITDA 342.7 318.6 302.6 Corporate and unallocated (52.5 ) (41.7 ) (37.6 ) Amortization expense (37.0 ) (31.2 ) (31.2 ) Depreciation expense (18.0 ) (16.7 ) (17.3 ) Transaction costs (1) (7.1 ) — — Other items (2) (5.6 ) — — Separation expense (0.1 ) (1.6 ) (6.5 ) Restructuring expense (6.0 ) (10.8 ) (2.5 ) Gain (loss) from impairment or disposal of assets — net 0.4 4.0 (3.3 ) Earnings from operations 216.8 220.6 204.2 Interest expense (89.0 ) (86.9 ) (85.2 ) Interest expense on notes with MTW — net — — (0.1 ) Loss on modification or extinguishment of debt (9.0 ) (1.7 ) (2.7 ) Other expense — net (29.8 ) (10.6 ) (14.0 ) Earnings before income taxes $ 89.0 $ 121.4 $ 102.2 (1) Transaction costs are associated with the Crem Acquisition. These costs include $1.9 million related to inventory fair value purchase accounting adjustments recorded in "Cost of sales" for the year ended December 31, 2018 and $5.2 million of professional services and other direct acquisition and integration costs recorded in "Selling, general and administrative expenses" for the year ended December 31, 2018. (2) Other items are costs which are not representative of our operational performance. For the year ended December 31, 2018, these costs include a $3.7 million loss on misappropriation of funds within our newly acquired Crem business, $1.3 million of costs associated with the restatement of previously issued consolidated financial statements in our Annual Report on Form 10-K/A for the year ended December 31, 2017 and $0.6 million of costs associated with other professional services. Each of these costs has been recorded in "Selling, general and administrative expenses" for the year ended December 31, 2018. Adjusted Operating EBITDA % by segment (3) : Americas 19.0 % 20.6 % 19.7 % EMEA 20.4 % 18.6 % 15.4 % APAC 13.6 % 11.9 % 12.9 % (3) Adjusted Operating EBITDA % in the section above is calculated by dividing the Adjusted Operating EBITDA by net sales for each respective segment. Capital expenditures: Americas $ 13.7 $ 17.2 $ 12.4 EMEA 1.8 2.0 0.9 APAC 3.0 1.0 1.8 Corporate 2.9 0.5 0.9 Total capital expenditures $ 21.4 $ 20.7 $ 16.0 (in millions) 2018 2017 2016 Depreciation: Americas $ 12.1 $ 11.5 $ 12.1 EMEA 3.0 2.4 2.5 APAC 2.4 1.9 2.0 Corporate 0.5 0.9 0.7 Total depreciation $ 18.0 $ 16.7 $ 17.3 As of December 31, 2018 and December 31, 2017 , total assets by reportable segment are as follows: (in millions) 2018 2017 Total assets by segment: Americas $ 1,437.3 $ 1,445.6 EMEA 324.2 112.1 APAC 169.0 128.7 Corporate 144.5 154.0 Total assets $ 2,075.0 $ 1,840.4 |
Net Sales by Product Class | Net sales by product class for the years ended December 31, 2018 , 2017 and 2016 are as follows: (in millions) 2018 2017 2016 Commercial foodservice whole goods $ 1,329.0 $ 1,173.3 $ 1,191.0 Aftermarket parts and support 261.1 272.1 265.1 Total net sales $ 1,590.1 $ 1,445.4 $ 1,456.1 |
Sales Information by Geographic Area | Net sales information by geographic area for the years ended December 31, 2018 , 2017 and 2016 are as follows: (in millions) 2018 2017 2016 Net sales by geographic area (4) : United States $ 995.0 $ 945.6 $ 945.2 Other Americas 112.0 95.0 104.3 EMEA 300.7 239.2 242.0 APAC 182.4 165.6 164.6 Total net sales by geographic area $ 1,590.1 $ 1,445.4 $ 1,456.1 (4) Net sales in the section above are attributed to geographic regions based on location of customer. |
Property Plant and Equipment by Geographic Area | As of December 31, 2018 and December 31, 2017 , "Property, plant and equipment — net" information by geographic area is as follows: (in millions) 2018 2017 Property, plant and equipment — net by geographic area: United States $ 70.7 $ 68.1 Other Americas 21.0 19.5 EMEA 12.1 11.6 APAC 15.2 13.0 Total property, plant and equipment — net by geographic area $ 119.0 $ 112.2 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data | The following table presents financial data for each quarter in 2018 and 2017 : 2018 (in millions, except per share data) First Second Third Fourth Net sales $ 350.4 $ 420.7 $ 412.9 $ 406.1 Gross profit 126.2 149.3 153.1 140.6 Net earnings 12.4 12.0 26.8 27.0 Per share data Earnings per share — Basic $ 0.09 $ 0.09 $ 0.19 $ 0.19 Earnings per share — Diluted $ 0.09 $ 0.09 $ 0.19 $ 0.19 2017 (in millions, except per share data) First Second Third Fourth Net sales $ 328.0 $ 371.1 $ 380.4 $ 365.9 Gross profit 123.0 137.2 143.9 132.8 Net earnings 6.9 28.4 30.7 66.9 Per share data Earnings per share — Basic $ 0.05 $ 0.20 $ 0.22 $ 0.48 Earnings per share — Diluted $ 0.05 $ 0.20 $ 0.22 $ 0.47 |
Schedule of Revision of Previously Issued Consolidated Financial Statements | The following tables summarize the effects these error corrections had on the Company's unaudited consolidated statements of cash flows by financial statement line item: Three Months Ended March 31, 2018 (in millions) As Reported Adjustment As Revised Net earnings $ 12.5 $ (0.1 ) $ 12.4 Accounts receivable (134.8 ) 3.9 (130.9 ) Other current and long-term liabilities (30.1 ) (9.0 ) (39.1 ) Net cash used in operating activities (153.5 ) (5.2 ) (158.7 ) Cash receipts on beneficial interest in sold receivables 131.8 (3.9 ) 127.9 Purchase of short-term investment — (35.0 ) (35.0 ) Proceeds from maturity of short-term investment — 20.7 20.7 Other — 0.3 0.3 Net cash provided by (used in) investing activities 128.1 (17.9 ) 110.2 Effect of exchange rate changes on cash (4.4 ) 8.0 3.6 Net increase (decrease) in cash and cash equivalents and restricted cash 25.4 (15.1 ) 10.3 Balance at beginning of period 128.7 (19.9 ) 108.8 Balance at end of period 154.1 (35.0 ) 119.1 Supplemental disclosures of non-cash activities: Non-cash investing activity: Beneficial interest obtained in exchange for securitized receivables 169.6 (0.4 ) 169.2 Six Months Ended June 30, 2018 (in millions) As Reported Adjustment As Revised Net earnings $ 24.6 $ (0.2 ) $ 24.4 Accounts receivable (313.0 ) 20.9 (292.1 ) Other current and long-term liabilities (27.2 ) (3.7 ) (30.9 ) Net cash (used in) provided by operating activities (288.0 ) 17.0 (271.0 ) Cash receipts on beneficial interest in sold receivables 285.7 (20.9 ) 264.8 Purchase of short-term investment — (35.0 ) (35.0 ) Proceeds from maturity of short-term investment — 20.7 20.7 Other — 0.6 0.6 Net cash provided by (used in) investing activities 52.1 (34.6 ) 17.5 Effect of exchange rate changes on cash (5.2 ) 4.3 (0.9 ) Net (decrease) increase in cash and cash equivalents and restricted cash (24.5 ) (13.3 ) (37.8 ) Balance at beginning of period 128.7 (19.9 ) 108.8 Balance at end of period 104.2 (33.2 ) 71.0 Supplemental disclosures of non-cash activities: Non-cash investing activity: Beneficial interest obtained in exchange for securitized receivables 350.6 14.5 365.1 Nine Months Ended September 30, 2018 (in millions) As Reported Adjustment As Revised Accounts receivable $ (483.0 ) $ 43.4 $ (439.6 ) Other current and long-term liabilities (19.3 ) (2.1 ) (21.4 ) Net cash used in (provided by) operating activities (421.3 ) 41.3 (380.0 ) Cash receipts on beneficial interest in sold receivables 463.6 (43.4 ) 420.2 Purchase of short-term investment — (35.0 ) (35.0 ) Proceeds from maturity of short-term investment — 20.7 20.7 Other — 0.9 0.9 Net cash provided by (used in) investing activities 221.2 (56.8 ) 164.4 Effect of exchange rate changes on cash (4.1 ) 3.4 (0.7 ) Net (decrease) in cash and cash equivalents and restricted cash (35.0 ) (12.1 ) (47.1 ) Balance at beginning of period 128.7 (19.9 ) 108.8 Balance at end of period 93.7 (32.0 ) 61.7 Supplemental disclosures of non-cash activities: Non-cash investing activity: Beneficial interest obtained in exchange for securitized receivables 522.3 33.5 555.8 The following tables set forth the effect these error corrections had on the Company’s unaudited consolidated statements of operations by financial statement line item. Three Months Ended March 31, 2018 (in millions) As Reported Adjustment As Revised Income taxes $ 0.3 $ 0.1 $ 0.4 Net earnings 12.5 (0.1 ) 12.4 Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 (in millions, except per share data) As Reported Adjustment As Revised As Reported Adjustment As Revised Income taxes $ 5.1 $ 0.1 $ 5.2 $ 5.4 $ 0.2 $ 5.6 Net earnings 12.1 (0.1 ) 12.0 24.6 (0.2 ) 24.4 Per share data Earnings per share — Basic $ 0.09 $ — $ 0.09 $ 0.18 $ (0.01 ) $ 0.17 Earnings per share — Diluted $ 0.09 $ — $ 0.09 $ 0.17 $ — $ 0.17 The following tables summarize the effects these corrections had on the Company's unaudited consolidated statements of comprehensive income by financial statement line item: Three Months Ended March 31, 2018 (in millions) As Reported Adjustment As Revised Net earnings $ 12.5 $ (0.1 ) $ 12.4 Foreign currency translation adjustments 0.1 (0.1 ) — Total other comprehensive income, net of tax 2.6 (0.1 ) 2.5 Comprehensive income 15.1 (0.2 ) 14.9 Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 (in millions) As Reported Adjustment As Revised As Reported Adjustment As Revised Net earnings $ 12.1 $ (0.1 ) $ 12.0 $ 24.6 $ (0.2 ) $ 24.4 Foreign currency translation adjustments (7.6 ) — (7.6 ) (7.5 ) (0.1 ) (7.6 ) Total other comprehensive loss, net of tax (8.3 ) — (8.3 ) (5.7 ) (0.1 ) (5.8 ) Comprehensive income 3.8 (0.1 ) 3.7 18.9 (0.3 ) 18.6 The following tables summarize the effects these corrections had on the Company's unaudited consolidated statements of equity by financial statement line item: (in millions) As Reported Adjustment As Revised Balance at December 31, 2017 Additional Paid-In Capital (Deficit) $ (63.3 ) $ 8.6 $ (54.7 ) Retained Earnings 204.5 (15.4 ) 189.1 Total Equity (Deficit) 110.4 (6.8 ) 103.6 Net earnings 12.5 (0.1 ) 12.4 Other comprehensive income 2.6 (0.1 ) 2.5 Balance at March 31, 2018 132.3 (7.0 ) 125.3 (in millions) As Reported Adjustment As Revised Balance at March 31, 2018 Additional Paid-In Capital (Deficit) $ (57.6 ) $ 8.6 $ (49.0 ) Retained Earnings 218.1 (15.5 ) 202.6 Accumulated Other Comprehensive Loss (29.4 ) (0.1 ) (29.5 ) Total Equity 132.3 (7.0 ) 125.3 Net earnings 12.1 (0.1 ) 12.0 Balance at June 30, 2018 140.8 (7.1 ) 133.7 (in millions) As Reported Adjustment As Revised Balance at June 30, 2018 Additional Paid-In Capital (Deficit) $ (52.9 ) $ 8.6 $ (44.3 ) Retained Earnings 230.2 (15.6 ) 214.6 Accumulated Other Comprehensive Loss (37.7 ) (0.1 ) (37.8 ) The following table summarizes the effects these corrections had on the Company's consolidated balance sheets by financial statement line item: December 31, 2017 (in millions) As Reported Adjustment As Revised Cash and cash equivalents $ 128.4 $ (19.9 ) $ 108.5 Short-term investment — 19.9 19.9 The following tables summarize the effects these corrections had on the Company's consolidated statements of cash flows by financial statement line item: Year Ended December 31, 2016 (in millions) As Reported Effect of Accounting Adoption (1)(2)(3) Adjustment As Revised Accounts receivable $ (8.3 ) $ (494.5 ) $ — $ (502.8 ) Other current and long-term liabilities 29.4 — (1.8 ) 27.6 Net cash provided by (used in) operating activities 124.3 (494.5 ) (1.8 ) (372.0 ) Cash receipts on beneficial interest in sold receivables — 494.3 — 494.3 Purchase of short-term investment — — (18.7 ) (18.7 ) Changes in restricted cash (6.0 ) 6.0 — — Net cash (used in) provided by investing activities (20.4 ) 500.3 (18.7 ) 461.2 Effect of exchange rate changes on cash (0.9 ) — 1.8 0.9 Net increase (decrease) in cash and cash equivalents and restricted cash 21.8 5.8 (18.7 ) 8.9 Balance at beginning of period 32.0 0.6 — 32.6 Balance at end of period 53.8 6.4 (18.7 ) 41.5 (1) As a result of the adoption of ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments," the Company reclassified consideration received for the beneficial interest obtained for transferring trade receivables in securitization transactions from operating activities to investing activities on the consolidated statements of cash flows for the year ended December 31, 2016. (2) As a result of the adoption of ASU 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash," beginning and ending cash and cash equivalents shown on the consolidated statements of cash flows for the year ended December 31, 2016 were increased for restricted cash and cash flows provided by investing activities were increased. (3) Amounts included in the Effect of Accounting Adoption presentation for this line item reflect a rounding adjustment. Year Ended December 31, 2017 (in millions) As Reported Effect of Accounting Adoption (1)(2)(3) Adjustment As Revised Accounts receivable 10.8 $ (552.0 ) $ — $ (541.2 ) Other current and long-term liabilities (4) 6.5 — (17.1 ) (10.6 ) Net cash used in (provided by) operating activities 137.8 (552.0 ) (17.1 ) (431.3 ) Cash receipts on beneficial interest in sold receivables — 552.1 — 552.1 Changes in restricted cash 6.2 (6.2 ) — — Other — — 0.9 0.9 Net cash (used in) provided by investing activities (3.4 ) 545.9 0.9 543.4 Effect of exchange rate changes on cash (8.1 ) — 15.0 6.9 Net increase (decrease) in cash and cash equivalents and restricted cash 74.6 (6.1 ) (1.2 ) 67.3 Balance at beginning of period 53.8 6.4 (18.7 ) 41.5 Balance at end of period 128.4 0.3 (19.9 ) 108.8 (1) As a result of the adoption of ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments," the Company reclassified consideration received for the beneficial interest obtained for transferring trade receivables in securitization transactions from operating activities to investing activities on the consolidated statements of cash flows for the year ended December 31, 2017. (2) As a result of the adoption of ASU 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash," beginning and ending cash and cash equivalents shown on the consolidated statements of cash flows for the year ended December 31, 2017 were increased for restricted cash and cash flows provided by investing activities were reduced. (3) Amounts included in the Effect of Accounting Adoption presentation for this line item reflect a rounding adjustment. (4) As Reported amount includes $0.2 million of a reclassification for the loss on divestitures and acquisitions. |
Revision of Previously Issued_2
Revision of Previously Issued Consolidated Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Revision of Previously Issued Consolidated Financial Statements | The following tables summarize the effects these error corrections had on the Company's unaudited consolidated statements of cash flows by financial statement line item: Three Months Ended March 31, 2018 (in millions) As Reported Adjustment As Revised Net earnings $ 12.5 $ (0.1 ) $ 12.4 Accounts receivable (134.8 ) 3.9 (130.9 ) Other current and long-term liabilities (30.1 ) (9.0 ) (39.1 ) Net cash used in operating activities (153.5 ) (5.2 ) (158.7 ) Cash receipts on beneficial interest in sold receivables 131.8 (3.9 ) 127.9 Purchase of short-term investment — (35.0 ) (35.0 ) Proceeds from maturity of short-term investment — 20.7 20.7 Other — 0.3 0.3 Net cash provided by (used in) investing activities 128.1 (17.9 ) 110.2 Effect of exchange rate changes on cash (4.4 ) 8.0 3.6 Net increase (decrease) in cash and cash equivalents and restricted cash 25.4 (15.1 ) 10.3 Balance at beginning of period 128.7 (19.9 ) 108.8 Balance at end of period 154.1 (35.0 ) 119.1 Supplemental disclosures of non-cash activities: Non-cash investing activity: Beneficial interest obtained in exchange for securitized receivables 169.6 (0.4 ) 169.2 Six Months Ended June 30, 2018 (in millions) As Reported Adjustment As Revised Net earnings $ 24.6 $ (0.2 ) $ 24.4 Accounts receivable (313.0 ) 20.9 (292.1 ) Other current and long-term liabilities (27.2 ) (3.7 ) (30.9 ) Net cash (used in) provided by operating activities (288.0 ) 17.0 (271.0 ) Cash receipts on beneficial interest in sold receivables 285.7 (20.9 ) 264.8 Purchase of short-term investment — (35.0 ) (35.0 ) Proceeds from maturity of short-term investment — 20.7 20.7 Other — 0.6 0.6 Net cash provided by (used in) investing activities 52.1 (34.6 ) 17.5 Effect of exchange rate changes on cash (5.2 ) 4.3 (0.9 ) Net (decrease) increase in cash and cash equivalents and restricted cash (24.5 ) (13.3 ) (37.8 ) Balance at beginning of period 128.7 (19.9 ) 108.8 Balance at end of period 104.2 (33.2 ) 71.0 Supplemental disclosures of non-cash activities: Non-cash investing activity: Beneficial interest obtained in exchange for securitized receivables 350.6 14.5 365.1 Nine Months Ended September 30, 2018 (in millions) As Reported Adjustment As Revised Accounts receivable $ (483.0 ) $ 43.4 $ (439.6 ) Other current and long-term liabilities (19.3 ) (2.1 ) (21.4 ) Net cash used in (provided by) operating activities (421.3 ) 41.3 (380.0 ) Cash receipts on beneficial interest in sold receivables 463.6 (43.4 ) 420.2 Purchase of short-term investment — (35.0 ) (35.0 ) Proceeds from maturity of short-term investment — 20.7 20.7 Other — 0.9 0.9 Net cash provided by (used in) investing activities 221.2 (56.8 ) 164.4 Effect of exchange rate changes on cash (4.1 ) 3.4 (0.7 ) Net (decrease) in cash and cash equivalents and restricted cash (35.0 ) (12.1 ) (47.1 ) Balance at beginning of period 128.7 (19.9 ) 108.8 Balance at end of period 93.7 (32.0 ) 61.7 Supplemental disclosures of non-cash activities: Non-cash investing activity: Beneficial interest obtained in exchange for securitized receivables 522.3 33.5 555.8 The following tables set forth the effect these error corrections had on the Company’s unaudited consolidated statements of operations by financial statement line item. Three Months Ended March 31, 2018 (in millions) As Reported Adjustment As Revised Income taxes $ 0.3 $ 0.1 $ 0.4 Net earnings 12.5 (0.1 ) 12.4 Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 (in millions, except per share data) As Reported Adjustment As Revised As Reported Adjustment As Revised Income taxes $ 5.1 $ 0.1 $ 5.2 $ 5.4 $ 0.2 $ 5.6 Net earnings 12.1 (0.1 ) 12.0 24.6 (0.2 ) 24.4 Per share data Earnings per share — Basic $ 0.09 $ — $ 0.09 $ 0.18 $ (0.01 ) $ 0.17 Earnings per share — Diluted $ 0.09 $ — $ 0.09 $ 0.17 $ — $ 0.17 The following tables summarize the effects these corrections had on the Company's unaudited consolidated statements of comprehensive income by financial statement line item: Three Months Ended March 31, 2018 (in millions) As Reported Adjustment As Revised Net earnings $ 12.5 $ (0.1 ) $ 12.4 Foreign currency translation adjustments 0.1 (0.1 ) — Total other comprehensive income, net of tax 2.6 (0.1 ) 2.5 Comprehensive income 15.1 (0.2 ) 14.9 Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 (in millions) As Reported Adjustment As Revised As Reported Adjustment As Revised Net earnings $ 12.1 $ (0.1 ) $ 12.0 $ 24.6 $ (0.2 ) $ 24.4 Foreign currency translation adjustments (7.6 ) — (7.6 ) (7.5 ) (0.1 ) (7.6 ) Total other comprehensive loss, net of tax (8.3 ) — (8.3 ) (5.7 ) (0.1 ) (5.8 ) Comprehensive income 3.8 (0.1 ) 3.7 18.9 (0.3 ) 18.6 The following tables summarize the effects these corrections had on the Company's unaudited consolidated statements of equity by financial statement line item: (in millions) As Reported Adjustment As Revised Balance at December 31, 2017 Additional Paid-In Capital (Deficit) $ (63.3 ) $ 8.6 $ (54.7 ) Retained Earnings 204.5 (15.4 ) 189.1 Total Equity (Deficit) 110.4 (6.8 ) 103.6 Net earnings 12.5 (0.1 ) 12.4 Other comprehensive income 2.6 (0.1 ) 2.5 Balance at March 31, 2018 132.3 (7.0 ) 125.3 (in millions) As Reported Adjustment As Revised Balance at March 31, 2018 Additional Paid-In Capital (Deficit) $ (57.6 ) $ 8.6 $ (49.0 ) Retained Earnings 218.1 (15.5 ) 202.6 Accumulated Other Comprehensive Loss (29.4 ) (0.1 ) (29.5 ) Total Equity 132.3 (7.0 ) 125.3 Net earnings 12.1 (0.1 ) 12.0 Balance at June 30, 2018 140.8 (7.1 ) 133.7 (in millions) As Reported Adjustment As Revised Balance at June 30, 2018 Additional Paid-In Capital (Deficit) $ (52.9 ) $ 8.6 $ (44.3 ) Retained Earnings 230.2 (15.6 ) 214.6 Accumulated Other Comprehensive Loss (37.7 ) (0.1 ) (37.8 ) The following table summarizes the effects these corrections had on the Company's consolidated balance sheets by financial statement line item: December 31, 2017 (in millions) As Reported Adjustment As Revised Cash and cash equivalents $ 128.4 $ (19.9 ) $ 108.5 Short-term investment — 19.9 19.9 The following tables summarize the effects these corrections had on the Company's consolidated statements of cash flows by financial statement line item: Year Ended December 31, 2016 (in millions) As Reported Effect of Accounting Adoption (1)(2)(3) Adjustment As Revised Accounts receivable $ (8.3 ) $ (494.5 ) $ — $ (502.8 ) Other current and long-term liabilities 29.4 — (1.8 ) 27.6 Net cash provided by (used in) operating activities 124.3 (494.5 ) (1.8 ) (372.0 ) Cash receipts on beneficial interest in sold receivables — 494.3 — 494.3 Purchase of short-term investment — — (18.7 ) (18.7 ) Changes in restricted cash (6.0 ) 6.0 — — Net cash (used in) provided by investing activities (20.4 ) 500.3 (18.7 ) 461.2 Effect of exchange rate changes on cash (0.9 ) — 1.8 0.9 Net increase (decrease) in cash and cash equivalents and restricted cash 21.8 5.8 (18.7 ) 8.9 Balance at beginning of period 32.0 0.6 — 32.6 Balance at end of period 53.8 6.4 (18.7 ) 41.5 (1) As a result of the adoption of ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments," the Company reclassified consideration received for the beneficial interest obtained for transferring trade receivables in securitization transactions from operating activities to investing activities on the consolidated statements of cash flows for the year ended December 31, 2016. (2) As a result of the adoption of ASU 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash," beginning and ending cash and cash equivalents shown on the consolidated statements of cash flows for the year ended December 31, 2016 were increased for restricted cash and cash flows provided by investing activities were increased. (3) Amounts included in the Effect of Accounting Adoption presentation for this line item reflect a rounding adjustment. Year Ended December 31, 2017 (in millions) As Reported Effect of Accounting Adoption (1)(2)(3) Adjustment As Revised Accounts receivable 10.8 $ (552.0 ) $ — $ (541.2 ) Other current and long-term liabilities (4) 6.5 — (17.1 ) (10.6 ) Net cash used in (provided by) operating activities 137.8 (552.0 ) (17.1 ) (431.3 ) Cash receipts on beneficial interest in sold receivables — 552.1 — 552.1 Changes in restricted cash 6.2 (6.2 ) — — Other — — 0.9 0.9 Net cash (used in) provided by investing activities (3.4 ) 545.9 0.9 543.4 Effect of exchange rate changes on cash (8.1 ) — 15.0 6.9 Net increase (decrease) in cash and cash equivalents and restricted cash 74.6 (6.1 ) (1.2 ) 67.3 Balance at beginning of period 53.8 6.4 (18.7 ) 41.5 Balance at end of period 128.4 0.3 (19.9 ) 108.8 (1) As a result of the adoption of ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments," the Company reclassified consideration received for the beneficial interest obtained for transferring trade receivables in securitization transactions from operating activities to investing activities on the consolidated statements of cash flows for the year ended December 31, 2017. (2) As a result of the adoption of ASU 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash," beginning and ending cash and cash equivalents shown on the consolidated statements of cash flows for the year ended December 31, 2017 were increased for restricted cash and cash flows provided by investing activities were reduced. (3) Amounts included in the Effect of Accounting Adoption presentation for this line item reflect a rounding adjustment. (4) As Reported amount includes $0.2 million of a reclassification for the loss on divestitures and acquisitions. |
Subsidiary Guarantors of Seni_2
Subsidiary Guarantors of Senior Notes due 2024 (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Consolidating Statement of Operations | WELBILT, INC. Consolidating Statement of Operations For the year ended December 31, 2018 (in millions) Parent Guarantor Non- Consolidating Adjustments Consolidated Net sales $ — $ 1,110.8 $ 937.8 $ (458.5 ) $ 1,590.1 Cost of sales 21.2 836.8 621.4 (458.5 ) 1,020.9 Gross profit (21.2 ) 274.0 316.4 — 569.2 Selling, general and administrative expenses 37.2 142.4 130.1 — 309.7 Amortization expense — 28.5 8.5 — 37.0 Separation expense 0.1 — — — 0.1 Restructuring expense 1.6 1.2 3.2 — 6.0 (Gain) loss from impairment or disposal of assets — net — (0.5 ) 0.1 — (0.4 ) (Loss) earnings from operations (60.1 ) 102.4 174.5 — 216.8 Interest expense 80.6 1.0 7.4 — 89.0 Loss on modification or extinguishment of debt 9.0 — — — 9.0 Other (income) expense — net (6.8 ) (29.6 ) 66.2 — 29.8 Equity in earnings (loss) of subsidiaries 191.1 71.9 — (263.0 ) — Earnings (loss) before income taxes 48.2 202.9 100.9 (263.0 ) 89.0 Income taxes (30.0 ) 11.8 29.0 10.8 Net earnings (loss) $ 78.2 $ 191.1 $ 71.9 $ (263.0 ) $ 78.2 Total other comprehensive (loss) income, net of tax (9.6 ) (19.5 ) (23.3 ) 42.8 (9.6 ) Comprehensive income (loss) $ 68.6 $ 171.6 $ 48.6 $ (220.2 ) $ 68.6 WELBILT, INC. Consolidating Statement of Operations For the year ended December 31, 2017 (in millions) Parent Guarantor Non- Consolidating Adjustments Consolidated Net sales $ — $ 1,042.3 $ 773.0 $ (369.9 ) $ 1,445.4 Cost of sales 3.8 750.6 524.0 (369.9 ) 908.5 Gross profit (3.8 ) 291.7 249.0 — 536.9 Selling, general and administrative expenses 35.9 143.7 97.1 — 276.7 Amortization expense — 28.4 2.8 — 31.2 Separation expense 1.5 0.1 — — 1.6 Restructuring expense 5.0 3.5 2.3 — 10.8 Gain from impairment or disposal of assets — net — (0.4 ) (3.6 ) — (4.0 ) (Loss) earnings from operations (46.2 ) 116.4 150.4 — 220.6 Interest expense 82.8 1.1 3.0 — 86.9 Loss on modification or extinguishment of debt 1.7 — — — 1.7 Other (income) expense — net (10.2 ) (23.7 ) 44.5 — 10.6 Equity in earnings (loss) of subsidiaries 232.6 86.1 — (318.7 ) — Earnings (loss) before income taxes 112.1 225.1 102.9 (318.7 ) 121.4 Income taxes (20.8 ) (7.5 ) 16.8 — (11.5 ) Net earnings (loss) $ 132.9 $ 232.6 $ 86.1 $ (318.7 ) $ 132.9 Total other comprehensive income (loss), net of tax 11.4 20.3 17.8 (38.1 ) 11.4 Comprehensive income (loss) $ 144.3 $ 252.9 $ 103.9 $ (356.8 ) $ 144.3 WELBILT, INC. Consolidating Statement of Operations For the year ended December 31, 2016 (in millions) Parent Guarantor Non- Consolidating Adjustments Consolidated Net sales $ — $ 1,069.5 $ 782.2 $ (395.6 ) $ 1,456.1 Cost of sales 3.4 774.4 540.1 (395.6 ) 922.3 Gross profit (3.4 ) 295.1 242.1 — 533.8 Selling, general and administrative expenses 33.2 153.5 99.4 — 286.1 Amortization expense — 28.4 2.8 — 31.2 Separation expense 6.3 — 0.2 — 6.5 Restructuring expense — 1.6 0.9 — 2.5 Gain from impairment or disposal of assets — net — 2.9 0.4 — 3.3 (Loss) earnings from operations (42.9 ) 108.7 138.4 — 204.2 Interest expense 82.2 1.2 1.8 — 85.2 Interest expense on notes with MTW — net — — 0.1 — 0.1 Loss on modification or extinguishment of debt 2.7 — — — 2.7 Other (income) expense — net (3.4 ) 16.4 1.0 — 14.0 Equity in earnings (loss) of subsidiaries 194.1 115.4 — (309.5 ) — Earnings (loss) before income taxes 69.7 206.5 135.5 (309.5 ) 102.2 Income taxes (1.8 ) 12.4 20.1 — 30.7 Net earnings (loss) $ 71.5 $ 194.1 $ 115.4 $ (309.5 ) $ 71.5 Total other comprehensive income (loss), net of tax 1.1 3.0 7.3 (10.3 ) 1.1 Comprehensive income (loss) $ 72.6 $ 197.1 $ 122.7 $ (319.8 ) $ 72.6 |
Consolidating Balance Sheet | WELBILT, INC. Consolidating Balance Sheet As of December 31, 2018 (in millions) Parent Guarantor Non- Consolidating Adjustments Consolidated Assets Current assets: Cash and cash equivalents $ 0.2 $ 0.5 $ 69.7 $ — $ 70.4 Restricted cash — — 2.8 — 2.8 Short-term investment — — 32.0 — 32.0 Accounts receivable — net — — 114.3 (1.8 ) 112.5 Inventories — net — 99.8 90.8 — 190.6 Prepaids and other current assets 17.0 3.5 11.7 — 32.2 Total current assets 17.2 103.8 321.3 (1.8 ) 440.5 Property, plant and equipment — net 3.0 71.1 44.9 — 119.0 Goodwill — 832.4 103.2 — 935.6 Other intangible assets — net — 370.8 175.9 — 546.7 Intercompany long-term note receivable 20.0 10.1 9.9 (40.0 ) — Due from affiliates — 3,395.0 — (3,395.0 ) — Investment in subsidiaries 4,200.5 — — (4,200.5 ) — Other non-current assets 12.1 4.0 28.1 (11.0 ) 33.2 Total assets $ 4,252.8 $ 4,787.2 $ 683.3 $ (7,648.3 ) $ 2,075.0 Liabilities and equity Current liabilities: Accounts payable $ 0.2 $ 81.5 $ 71.2 $ (1.9 ) $ 151.0 Accrued expenses and other liabilities 33.9 88.8 61.0 — 183.7 Short-term borrowings — — 15.0 — 15.0 Current portion of capital leases — 0.9 0.2 — 1.1 Product warranties — 18.2 9.7 — 27.9 Total current liabilities 34.1 189.4 157.1 (1.9 ) 378.7 Long-term debt and capital leases 1,246.6 1.2 74.0 — 1,321.8 Deferred income taxes 60.5 — 43.8 — 104.3 Pension and postretirement health obligations 45.5 4.6 — (10.9 ) 39.2 Intercompany long-term note payable 15.7 — 24.3 (40.0 ) — Due to affiliates 2,649.5 — 745.5 (3,395.0 ) — Investment in subsidiaries — 368.3 — (368.3 ) — Other long-term liabilities 14.5 23.2 6.9 — 44.6 Total non-current liabilities 4,032.3 397.3 894.5 (3,814.2 ) 1,509.9 Total equity (deficit): Total equity (deficit) 186.4 4,200.5 (368.3 ) (3,832.2 ) 186.4 Total liabilities and equity $ 4,252.8 $ 4,787.2 $ 683.3 $ (7,648.3 ) $ 2,075.0 WELBILT, INC. Consolidating Balance Sheet As of December 31, 2017 (in millions) Parent Guarantor Non- Consolidating Adjustments Consolidated Assets Current assets: Cash and cash equivalents $ 8.8 $ — $ 100.5 $ (0.8 ) $ 108.5 Restricted cash — — 0.3 — 0.3 Short-term investment — — 19.9 — 19.9 Accounts receivable — net — — 84.7 (1.0 ) 83.7 Inventories — net — 69.8 82.5 — 152.3 Prepaids and other current assets 5.3 5.9 7.8 — 19.0 Total current assets 14.1 75.7 295.7 (1.8 ) 383.7 Property, plant and equipment — net 0.5 68.7 43.0 — 112.2 Goodwill — 832.4 13.7 — 846.1 Other intangible assets — net — 396.3 65.1 — 461.4 Intercompany long-term note receivable — 20.0 — (20.0 ) — Due from affiliates — 3,252.8 — (3,252.8 ) — Investment in subsidiaries 4,009.4 — — (4,009.4 ) — Other non-current assets 10.8 5.2 28.7 (7.7 ) 37.0 Total assets $ 4,034.8 $ 4,651.1 $ 446.2 $ (7,291.7 ) $ 1,840.4 Liabilities and equity Current liabilities: Accounts payable $ 0.2 $ 58.2 $ 47.0 $ (1.8 ) $ 103.6 Accrued expenses and other liabilities 20.7 95.9 52.9 — 169.5 Current portion of capital leases — 0.5 0.2 — 0.7 Product warranties — 16.2 7.9 — 24.1 Total current liabilities 20.9 170.8 108.0 (1.8 ) 297.9 Long-term debt and capital leases 1,230.2 1.2 0.8 — 1,232.2 Deferred income taxes 73.7 — 17.6 — 91.3 Pension and postretirement health obligations 51.3 4.7 — (7.7 ) 48.3 Intercompany long-term note payable 15.7 — 4.3 (20.0 ) — Due to affiliates 2,501.4 — 751.4 (3,252.8 ) — Investment in subsidiaries — 440.2 — (440.2 ) — Other long-term liabilities 38.0 24.8 4.3 — 67.1 Total non-current liabilities 3,910.3 470.9 778.4 (3,720.7 ) 1,438.9 Total equity (deficit): Total equity (deficit) 103.6 4,009.4 (440.2 ) (3,569.2 ) 103.6 Total liabilities and equity $ 4,034.8 $ 4,651.1 $ 446.2 $ (7,291.7 ) $ 1,840.4 |
Consolidating Statement of Cash Flows | WELBILT, INC. Consolidating Statement of Cash Flows For the year ended December 31, 2018 (in millions) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash flows from operating activities Net cash (used in) provided by operating activities $ (150.9 ) $ 148.5 $ (446.9 ) $ 0.8 $ (448.5 ) Cash flows from investing activities Cash receipts on beneficial interest in sold receivables — — 576.4 — 576.4 Capital expenditures (2.9 ) (11.1 ) (7.4 ) — (21.4 ) Acquisition of intangible assets — (2.8 ) — — (2.8 ) Business acquisition, net of cash acquired — — (215.6 ) — (215.6 ) Purchase of short-term investment — — (35.0 ) — (35.0 ) Proceeds from maturity of short-term investment — — 20.7 — 20.7 Settlement of foreign exchange contract — — (10.0 ) — (10.0 ) Other 1.2 — — — 1.2 Intercompany investment — (132.3 ) 4.2 128.1 — Net cash (used in) provided by investing activities (1.7 ) (146.2 ) 333.3 128.1 313.5 Cash flows from financing activities Proceeds from long-term debt 300.5 — 175.0 — 475.5 Repayments on long-term debt and capital leases (281.0 ) (0.4 ) (101.8 ) — (383.2 ) Proceeds from short-term borrowings — — 30.0 — 30.0 Repayment of short-term borrowings — — (15.0 ) — (15.0 ) Debt issuance costs (6.8 ) — — — (6.8 ) Payment of deferred consideration — (1.4 ) — — (1.4 ) Exercises of stock options 6.2 — — — 6.2 Payments on tax withholdings for equity awards (3.0 ) — — — (3.0 ) Intercompany financing 128.1 — — (128.1 ) — Net cash provided by (used in) financing activities 144.0 (1.8 ) 88.2 (128.1 ) 102.3 Effect of exchange rate changes on cash — — (2.9 ) — (2.9 ) Net (decrease) increase in cash and cash equivalents and restricted cash (8.6 ) 0.5 (28.3 ) 0.8 (35.6 ) Balance at beginning of period 8.8 — 100.8 (0.8 ) 108.8 Balance at end of period $ 0.2 $ 0.5 $ 72.5 $ — $ 73.2 WELBILT, INC. Consolidating Statement of Cash Flows For the year ended December 31, 2017 (in millions) Parent Guarantor Non- Consolidating Adjustments Consolidated Cash flows from operating activities Net cash (used in) provided by operating activities $ (97.6 ) $ 169.3 $ (502.2 ) $ (0.8 ) $ (431.3 ) Cash flows from investing activities Cash receipts on beneficial interest in sold receivables — — 552.1 — 552.1 Capital expenditures (0.5 ) (12.5 ) (7.7 ) — (20.7 ) Proceeds from sale of property, plant and equipment — 6.0 6.3 — 12.3 Acquisition of intangible assets — (1.2 ) — — (1.2 ) Other 0.9 — — — 0.9 Intercompany investment — (163.4 ) 6.8 156.6 — Net cash provided by (used in) investing activities 0.4 (171.1 ) 557.5 156.6 543.4 Cash flows from financing activities Proceeds from long-term debt 155.0 — — — 155.0 Repayments on long-term debt and capital leases (203.4 ) (0.5 ) (0.2 ) — (204.1 ) Proceeds from short-term borrowings — — 4.0 — 4.0 Repayment of short-term borrowings — — (4.0 ) — (4.0 ) Debt issuance costs (2.0 ) — — — (2.0 ) Exercises of stock options 4.8 — — — 4.8 Payments on tax withholdings for equity awards (5.4 ) — — — (5.4 ) Intercompany financing 156.6 — — (156.6 ) — Net cash provided by (used in) financing activities 105.6 (0.5 ) (0.2 ) (156.6 ) (51.7 ) Effect of exchange rate changes on cash — — 6.9 — 6.9 Net increase (decrease) in cash and cash equivalents and restricted cash 8.4 (2.3 ) 62.0 (0.8 ) 67.3 Balance at beginning of period 0.4 2.3 38.8 — 41.5 Balance at end of period $ 8.8 $ — $ 100.8 $ (0.8 ) $ 108.8 WELBILT, INC. Consolidating Statement of Cash Flows For the year ended December 31, 2016 (in millions) Parent Guarantor Non- Consolidating Adjustments Consolidated Cash flows from operating activities Net cash (used in) provided by operating activities $ (100.4 ) $ 84.0 $ (355.6 ) $ — $ (372.0 ) Cash flows from investing activities Cash receipts on beneficial interest in sold receivables — — 494.3 — 494.3 Capital expenditures (1.0 ) (8.0 ) (7.0 ) — (16.0 ) Proceeds from sale of property, plant and equipment — — 0.5 — 0.5 Purchase of short-term investment — — (18.7 ) — (18.7 ) Proceeds from dispositions — — 1.1 — 1.1 Intercompany investment — (76.9 ) (106.9 ) 183.8 — Net cash (used in) provided by investing activities (1.0 ) (84.9 ) 363.3 183.8 461.2 Cash flows from financing activities Proceeds from long-term debt 1,499.5 0.2 1.4 — 1,501.1 Repayments on long-term debt and capital leases (186.0 ) (0.5 ) (0.3 ) — (186.8 ) Debt issuance costs (41.3 ) — — — (41.3 ) Dividend paid to MTW (1,362.0 ) — — — (1,362.0 ) Net transactions with MTW (4.6 ) — — — (4.6 ) Exercises of stock options 16.2 — — — 16.2 Payments on tax withholdings for equity awards (3.8 ) — — — (3.8 ) Intercompany financing 183.8 — — (183.8 ) — Net cash provided by (used in) financing activities 101.8 (0.3 ) 1.1 (183.8 ) (81.2 ) Effect of exchange rate changes on cash — — 0.9 — 0.9 Net increase (decrease) in cash and cash equivalents and restricted cash 0.4 (1.2 ) 9.7 — 8.9 Balance at beginning of period — 3.5 29.1 — 32.6 Balance at end of period $ 0.4 $ 2.3 $ 38.8 $ — $ 41.5 |
Business and Organization (Deta
Business and Organization (Details) | 12 Months Ended | |
Dec. 31, 2018manufacturing_facilitysegment | Jan. 29, 2015CompanyBusiness | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of independent public companies | Company | 2 | |
Number of operating businesses | Business | 2 | |
Number of manufacturing facilities operating | manufacturing_facility | 21 | |
Number of segments | segment | 3 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies and Basis of Presentation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Mar. 31, 2018 | Jun. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2019 | Dec. 31, 2015 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Average collection cycle for accounts receivable | 60 days | |||||||
Percentage of FIFO inventory | 92.40% | 92.30% | ||||||
Excess of FIFO costs over LIFO value | $ 4.2 | $ 3.9 | ||||||
Stock-based compensation expense | 7 | 11.1 | $ 6.3 | |||||
Research and development costs | 37.3 | 39.4 | 35.2 | |||||
Advertising costs | 15.2 | 14.9 | 12.9 | |||||
Cash, cash equivalents and restricted cash | $ 119.1 | $ 71 | $ 61.7 | 73.2 | 108.8 | 41.5 | $ 32.6 | |
Net cash (used in) provided by investing activities | 110.2 | 17.5 | 164.4 | 313.5 | 543.4 | 461.2 | ||
Net cash provided by (used in) operating activities | $ (158.7) | $ (271) | $ (380) | (448.5) | (431.3) | (372) | ||
Accounting Standards Update 2016-18 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Cash, cash equivalents and restricted cash | 6.4 | 0.6 | ||||||
Net cash (used in) provided by investing activities | (6.2) | 6 | ||||||
Accounting Standards Update 2016-15 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Net cash (used in) provided by investing activities | 552.1 | 494.3 | ||||||
Net cash provided by (used in) operating activities | (552.1) | (494.3) | ||||||
Accounting Standards Update 2016-02 | Scenario, Forecast | Minimum | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Right-of-use asset | $ 33 | |||||||
Lease liability | 33 | |||||||
Accounting Standards Update 2016-02 | Scenario, Forecast | Maximum | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Right-of-use asset | 43 | |||||||
Lease liability | $ 43 | |||||||
Selling, general and administrative expenses | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Stock-based compensation expense | $ 6.6 | 8.1 | 4.7 | |||||
Selling, general and administrative expenses | Accounting Standards Update 2017-07 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Net periodic benefit cost | (1.5) | (5) | ||||||
Other expense - net | Accounting Standards Update 2017-07 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Net periodic benefit cost | $ 1.5 | $ 5 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies and Basis of Presentation - Schedule of Estimated Useful Lives of Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Minimum | Building and improvements | |
Estimated useful lives of property, plant and equipment | |
Useful lives property, plant and equipment | 2 years |
Minimum | Machinery, equipment and tooling | |
Estimated useful lives of property, plant and equipment | |
Useful lives property, plant and equipment | 2 years |
Minimum | Furniture and fixtures | |
Estimated useful lives of property, plant and equipment | |
Useful lives property, plant and equipment | 3 years |
Minimum | Computer hardware and software | |
Estimated useful lives of property, plant and equipment | |
Useful lives property, plant and equipment | 2 years |
Maximum | Building and improvements | |
Estimated useful lives of property, plant and equipment | |
Useful lives property, plant and equipment | 40 years |
Maximum | Machinery, equipment and tooling | |
Estimated useful lives of property, plant and equipment | |
Useful lives property, plant and equipment | 20 years |
Maximum | Furniture and fixtures | |
Estimated useful lives of property, plant and equipment | |
Useful lives property, plant and equipment | 15 years |
Maximum | Computer hardware and software | |
Estimated useful lives of property, plant and equipment | |
Useful lives property, plant and equipment | 7 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies and Basis of Presentation - Schedule of Estimated Useful Lives of Other Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 10 years |
Patents | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 17 years |
Engineering drawings | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 15 years |
Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 11 years |
Minimum | Patents | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 10 years |
Minimum | Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 10 years |
Minimum | Design libraries | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 7 years |
Maximum | Patents | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 20 years |
Maximum | Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 20 years |
Maximum | Design libraries | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 20 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies and Basis of Presentation - Net Sales By Product Class and Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 406.1 | $ 412.9 | $ 420.7 | $ 350.4 | $ 365.9 | $ 380.4 | $ 371.1 | $ 328 | $ 1,590.1 | $ 1,445.4 | $ 1,456.1 |
Americas | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,090.9 | ||||||||||
EMEA | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 307.4 | ||||||||||
APAC | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 191.8 | ||||||||||
Commercial Foodservice Whole Goods | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,329 | 1,173.3 | 1,191 | ||||||||
Commercial Foodservice Whole Goods | Americas | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 907 | ||||||||||
Commercial Foodservice Whole Goods | EMEA | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 258.8 | ||||||||||
Commercial Foodservice Whole Goods | APAC | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 163.2 | ||||||||||
Aftermarket Parts and Support | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 261.1 | $ 272.1 | $ 265.1 | ||||||||
Aftermarket Parts and Support | Americas | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 183.9 | ||||||||||
Aftermarket Parts and Support | EMEA | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 48.6 | ||||||||||
Aftermarket Parts and Support | APAC | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 28.6 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies and Basis of Presentation - Extended Warranties Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue from External Customer [Line Items] | ||
Standard product warranty, low end of range | 12 months | |
Standard product warranty, high end of range | 60 months | |
Deferred revenue, current | $ 2.7 | $ 4.2 |
Extended warranties | ||
Revenue from External Customer [Line Items] | ||
Deferred revenues | 6 | $ 6.7 |
Deferred revenue, current | 2.2 | |
Deferred revenues, noncurrent | $ 3.8 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies and Basis of Presentation - Remaining Performance Obligations Narrative (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 $ in Millions | Dec. 31, 2018USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations not yet met | $ 0.5 |
Performance obligations not yet met, period of recognition | 1 year |
Summary of Significant Accou_10
Summary of Significant Accounting Policies and Basis of Presentation - Reclassifications and Revisions of Previously Issued Consolidated Financial Statements (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Jun. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Cash, cash equivalents and restricted cash | $ 119.1 | $ 71 | $ 61.7 | $ 73.2 | $ 108.8 | $ 41.5 | $ 32.6 |
Net cash (used in) provided by investing activities | 110.2 | 17.5 | 164.4 | 313.5 | 543.4 | 461.2 | |
Net cash provided by (used in) operating activities | (158.7) | (271) | (380) | (448.5) | (431.3) | (372) | |
Cash and cash equivalents | 70.4 | 108.5 | |||||
Short-term investment | 32 | 19.9 | |||||
Effect of exchange rate changes on cash | $ 3.6 | $ (0.9) | $ (0.7) | $ (2.9) | 6.9 | 0.9 | |
Adjustment | Classification error of short-time deposit | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Cash and cash equivalents | (19.9) | (18.7) | |||||
Short-term investment | 19.9 | 18.7 | |||||
Adjustment | Calculation error of effect of exchange rate changes | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Net cash provided by (used in) operating activities | (16.2) | (1.8) | |||||
Effect of exchange rate changes on cash | 16.2 | 1.8 | |||||
Accounting Standards Update 2017-07 | Selling, general and administrative expenses | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Net periodic benefit cost | (1.5) | (5) | |||||
Accounting Standards Update 2017-07 | Other expense - net | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Net periodic benefit cost | 1.5 | 5 | |||||
Accounting Standards Update 2016-18 | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Cash, cash equivalents and restricted cash | 6.4 | 0.6 | |||||
Net cash (used in) provided by investing activities | (6.2) | 6 | |||||
Accounting Standards Update 2016-15 | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Net cash (used in) provided by investing activities | 552.1 | 494.3 | |||||
Net cash provided by (used in) operating activities | $ (552.1) | $ (494.3) |
Summary of Significant Accou_11
Summary of Significant Accounting Policies and Basis of Presentation - Cumulative Effect of New Accounting Pronouncement (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Assets: | |||
Inventories — net | $ 190.6 | $ 153.4 | $ 152.3 |
Equity: | |||
Retained earnings | $ 268.4 | 190.2 | 189.1 |
Calculated under Revenue Guidance in Effect before Topic 606 | |||
Assets: | |||
Inventories — net | $ 152.3 | ||
Adjustments Due to Adoption of ASU 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||
Assets: | |||
Inventories — net | 1.1 | ||
Equity: | |||
Retained earnings | $ 1.1 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Narrative (Details) € in Millions, ₩ in Millions, $ in Millions | Apr. 19, 2018USD ($)brand | Apr. 19, 2018KRW (₩)brand | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2018USD ($) | Apr. 19, 2018KRW (₩) |
Business Acquisition [Line Items] | |||||||||
Professional services and other direct acquisition costs | $ 7.1 | $ 0 | $ 0 | ||||||
Loss from diversion of funds | 3.7 | ||||||||
Goodwill | 846.1 | 845.3 | $ 935.6 | ||||||
Diversion of funds | |||||||||
Business Acquisition [Line Items] | |||||||||
Estimated loss from diversion of funds | € | € 4 | ||||||||
Amount recovered | € | € 1 | ||||||||
Loss from diversion of funds | $ 3.7 | ||||||||
EMEA | |||||||||
Business Acquisition [Line Items] | |||||||||
Goodwill | 4.9 | 4.7 | 83.1 | ||||||
APAC | |||||||||
Business Acquisition [Line Items] | |||||||||
Goodwill | $ 8.6 | $ 8 | $ 19.9 | ||||||
Crem acquisition | |||||||||
Business Acquisition [Line Items] | |||||||||
Share capital percentage acquired | 100.00% | 100.00% | |||||||
Total purchase price | $ 220.3 | ₩ 1,800 | |||||||
Cash payment in acquisition | 159.8 | ||||||||
Interest paid to seller | 2.4 | ||||||||
Repayment of indebtedness | $ 60.5 | ||||||||
Number of brands | brand | 3 | 3 | |||||||
Professional services and other direct acquisition costs | 5.2 | ||||||||
Derivative notional amount | ₩ | ₩ 1,800 | ||||||||
Foreign exchange loss | 10 | ||||||||
Net sales | 62 | ||||||||
Loss from operations | $ 2.8 | ||||||||
Goodwill | $ 97 | ||||||||
Crem acquisition | EMEA | |||||||||
Business Acquisition [Line Items] | |||||||||
Goodwill | 84.2 | ||||||||
Crem acquisition | APAC | |||||||||
Business Acquisition [Line Items] | |||||||||
Goodwill | $ 12.8 | ||||||||
Crem | Diversion of funds | |||||||||
Business Acquisition [Line Items] | |||||||||
Loss from diversion of funds | $ 3.4 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Consideration Paid and Identified Assets Acquired and Liabilities Assumed (Details) ₩ in Millions, $ in Millions | Apr. 19, 2018USD ($) | Apr. 19, 2018KRW (₩) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Recognized preliminary amounts of identifiable assets acquired and (liabilities assumed), at fair value: | |||||
Allocation to goodwill | $ 935.6 | $ 846.1 | $ 845.3 | ||
Crem acquisition | |||||
Business Acquisition [Line Items] | |||||
Total purchase price | $ 220.3 | ₩ 1,800 | |||
Less: cash acquired | 4.7 | ||||
Total purchase price, net of cash acquired | 215.6 | ||||
Recognized preliminary amounts of identifiable assets acquired and (liabilities assumed), at fair value: | |||||
Cash | 4.7 | ||||
Accounts receivable | 17.2 | ||||
Inventories | 16.9 | ||||
Prepaids and other current assets | 1.9 | ||||
Property, plant and equipment | 4.9 | ||||
Other intangible assets | 131.2 | ||||
Other non-current assets | 2.1 | ||||
Accounts payable | (11.4) | ||||
Accrued expenses and other liabilities | (6) | ||||
Deferred income taxes | (32.8) | ||||
Pension and postretirement health obligations | (0.4) | ||||
Other long-term liabilities | (5) | ||||
Preliminary estimate of the fair value of assets acquired and liabilities assumed | 123.3 | ||||
Allocation to goodwill | $ 97 |
Acquisitions and Divestitures_3
Acquisitions and Divestitures - Preliminary Fair Value Estimates of Intangible Assets Other than Goodwill Acquired (Details) - USD ($) $ in Millions | Apr. 19, 2018 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||
Estimated useful lives | 10 years | |
Customer relationships | ||
Business Acquisition [Line Items] | ||
Estimated useful lives | 11 years | |
Customer relationships | Minimum | ||
Business Acquisition [Line Items] | ||
Estimated useful lives | 10 years | |
Customer relationships | Maximum | ||
Business Acquisition [Line Items] | ||
Estimated useful lives | 20 years | |
Design libraries | Minimum | ||
Business Acquisition [Line Items] | ||
Estimated useful lives | 7 years | |
Design libraries | Maximum | ||
Business Acquisition [Line Items] | ||
Estimated useful lives | 20 years | |
Crem acquisition | ||
Business Acquisition [Line Items] | ||
Total definite-lived intangible assets | $ 84.8 | |
Total intangible assets | $ 131.2 | |
Weighted average amortization period | 10 years 1 month | |
Crem acquisition | Tradename | ||
Business Acquisition [Line Items] | ||
Trade name | $ 46.4 | |
Crem acquisition | Customer relationships | ||
Business Acquisition [Line Items] | ||
Total definite-lived intangible assets | $ 64.2 | |
Estimated useful lives | 10 years | |
Weighted average amortization period | 10 years | |
Crem acquisition | Design libraries | ||
Business Acquisition [Line Items] | ||
Total definite-lived intangible assets | $ 20.6 | |
Weighted average amortization period | 10 years 4 months 24 days | |
Crem acquisition | Design libraries | Minimum | ||
Business Acquisition [Line Items] | ||
Estimated useful lives | 7 years | |
Crem acquisition | Design libraries | Maximum | ||
Business Acquisition [Line Items] | ||
Estimated useful lives | 20 years |
Acquisitions and Divestitures_4
Acquisitions and Divestitures - Divestitures Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 31, 2017 | |
Discontinued operations | |||||
Proceeds from dispositions | $ 0 | $ 0 | $ 1.1 | ||
Shanghai Business | |||||
Discontinued operations | |||||
Net purchase price | $ 1.1 | ||||
Proceeds from dispositions | $ 1.1 |
Accounts Receivable Securitiz_2
Accounts Receivable Securitization (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($)entity | Dec. 31, 2017USD ($) | |
Accounts Receivable Securitization | ||
Number of funding entities | entity | 2 | |
Capacity of securitization program | $ 110 | |
Average collection cycle for accounts receivable | 60 days | |
Fair value of deferred purchase price notes | $ 56.9 | $ 62.9 |
Accounts receivable from securitization | $ 96.9 | $ 99.5 |
LIBOR | ||
Accounts Receivable Securitization | ||
Fixed spread | 1.25% |
Inventories - Net (Details)
Inventories - Net (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Inventories — gross: | |||
Raw materials | $ 90.4 | $ 73.9 | |
Work-in-process | 16 | 18.9 | |
Finished goods | 108.8 | 86.9 | |
Total inventories — gross | 215.2 | 179.7 | |
Excess and obsolete inventory reserve | (20.4) | (23.5) | |
Net inventories at FIFO cost | 194.8 | 156.2 | |
Excess of FIFO costs over LIFO value | (4.2) | (3.9) | |
Inventories — net | $ 190.6 | $ 153.4 | $ 152.3 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Net (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment | ||
Total cost | $ 410.8 | $ 402.5 |
Less accumulated depreciation | (291.8) | (290.3) |
Property, plant and equipment — net | 119 | 112.2 |
Land | ||
Property, Plant and Equipment | ||
Total cost | 9.8 | 9.5 |
Building and improvements | ||
Property, Plant and Equipment | ||
Total cost | 88.5 | 88.9 |
Machinery, equipment and tooling | ||
Property, Plant and Equipment | ||
Total cost | 226.6 | 227.3 |
Furniture and fixtures | ||
Property, Plant and Equipment | ||
Total cost | 6.5 | 6 |
Computer hardware and software | ||
Property, Plant and Equipment | ||
Total cost | 58.3 | 55.1 |
Construction in progress | ||
Property, Plant and Equipment | ||
Total cost | $ 21.1 | $ 15.7 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Net - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)segment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |||
Number of segments | segment | 3 | ||
Amortization expense | $ | $ 37 | $ 31.2 | $ 31.2 |
Estimated useful lives | 10 years | ||
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful lives | 11 years | ||
Patents | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful lives | 17 years | ||
Other intangibles | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful lives | 8 years |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Net - Changes in the Carrying Amount of Goodwill by Reportable Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill | |||||
Gross balance | $ 1,451.3 | $ 1,361.8 | $ 1,361 | ||
Accumulated asset impairments | (515.7) | (515.7) | (515.7) | ||
Net balance | $ 846.1 | $ 845.3 | 935.6 | 846.1 | 845.3 |
Goodwill [Roll Forward] | |||||
Net balance | 846.1 | 845.3 | |||
Impact of acquisition | 97 | ||||
Foreign currency impact | (7.5) | (0.8) | |||
Net balance | 935.6 | 846.1 | |||
Americas | |||||
Goodwill | |||||
Gross balance | 1,144.8 | 1,144.8 | 1,144.8 | ||
Accumulated asset impairments | (312.2) | (312.2) | (312.2) | ||
Net balance | 832.6 | 832.6 | 832.6 | 832.6 | 832.6 |
Goodwill [Roll Forward] | |||||
Net balance | 832.6 | 832.6 | |||
Impact of acquisition | 0 | ||||
Foreign currency impact | 0 | 0 | |||
Net balance | 832.6 | 832.6 | |||
EMEA | |||||
Goodwill | |||||
Gross balance | 286.6 | 208.4 | 208.2 | ||
Accumulated asset impairments | (203.5) | (203.5) | (203.5) | ||
Net balance | 4.9 | 4.7 | 83.1 | 4.9 | 4.7 |
Goodwill [Roll Forward] | |||||
Net balance | 4.9 | 4.7 | |||
Impact of acquisition | 84.2 | ||||
Foreign currency impact | (6) | (0.2) | |||
Net balance | 83.1 | 4.9 | |||
APAC | |||||
Goodwill | |||||
Gross balance | 19.9 | 8.6 | 8 | ||
Accumulated asset impairments | 0 | 0 | 0 | ||
Net balance | 8.6 | 8 | $ 19.9 | $ 8.6 | $ 8 |
Goodwill [Roll Forward] | |||||
Net balance | 8.6 | 8 | |||
Impact of acquisition | 12.8 | ||||
Foreign currency impact | (1.5) | (0.6) | |||
Net balance | $ 19.9 | $ 8.6 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Net - Gross Carrying Amount and Accumulated Amortization of Intangible Assets other than Goodwill (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Intangible asset balances by major asset class | ||
Definite-lived intangibles, accumulated amortization | $ (315) | $ (279.1) |
Definite-lived intangibles, net book value | 328 | |
Intangible assets, gross carrying amount | 861.7 | 740.5 |
Intangible assets, net book value | 546.7 | 461.4 |
Customer relationships | ||
Intangible asset balances by major asset class | ||
Definite-lived intangibles, gross carrying amount | 474.8 | 415.3 |
Definite-lived intangibles, accumulated amortization | (217.4) | (192.3) |
Definite-lived intangibles, net book value | 257.4 | 223 |
Patents | ||
Intangible asset balances by major asset class | ||
Definite-lived intangibles, gross carrying amount | 5.8 | 2.8 |
Definite-lived intangibles, accumulated amortization | (1.7) | (1.7) |
Definite-lived intangibles, net book value | 4.1 | 1.1 |
Other intangibles | ||
Intangible asset balances by major asset class | ||
Definite-lived intangibles, gross carrying amount | 162.4 | 144.9 |
Definite-lived intangibles, accumulated amortization | (95.9) | (85.1) |
Definite-lived intangibles, net book value | 66.5 | 59.8 |
Trademarks and tradenames | ||
Intangible asset balances by major asset class | ||
Indefinite-lived intangibles | $ 218.7 | $ 177.5 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Net - Schedule of Estimated Amortization of Intangible Assets (Details) $ in Millions | Dec. 31, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,019 | $ 35.8 |
2,020 | 35.6 |
2,021 | 35.6 |
2,022 | 33.7 |
2,023 | 29 |
Thereafter | 158.3 |
Definite-lived intangibles, net book value | $ 328 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts payable: | ||
Trade accounts payable | $ 151 | $ 103.6 |
Total accounts payable | 151 | 103.6 |
Accrued expenses and other liabilities: | ||
Interest payable | 2.2 | 7.8 |
Income taxes payable | 10.2 | 13.9 |
Employee related expenses | 30 | 30.8 |
Restructuring expenses | 3 | 5 |
Profit sharing and incentives | 19.9 | 11.5 |
Accrued rebates | 50.8 | 50 |
Deferred revenue — current | 2.7 | 4.2 |
Customer advances | 3.1 | 2.6 |
Product liability | 1.3 | 1.4 |
Derivative liability | 18.4 | 1.2 |
Miscellaneous accrued expenses | 42.1 | 41.1 |
Total accrued expenses and other liabilities | $ 183.7 | $ 169.5 |
Income Taxes - Summary of Earni
Income Taxes - Summary of Earnings before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (8) | $ 32.5 | $ 31.5 |
Foreign | 97 | 88.9 | 70.7 |
Earnings before income taxes | $ 89 | $ 121.4 | $ 102.2 |
Income Taxes - Schedule of the
Income Taxes - Schedule of the Components of Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current: | ||||||
Federal and state | $ (4.3) | $ 28.2 | $ 19.7 | |||
Foreign | 29.1 | 24.6 | 18.6 | |||
Total current tax expense | 24.8 | 52.8 | 38.3 | |||
Deferred: | ||||||
Federal and state | (14) | (56.6) | (9.2) | |||
Foreign | 0 | (7.7) | 1.6 | |||
Total deferred tax benefit | (14) | (64.3) | (7.6) | |||
Total: | ||||||
Federal and State | (18.3) | (28.4) | 10.5 | |||
International | 29.1 | 16.9 | 20.2 | |||
Income taxes | $ 5.2 | $ 0.4 | $ 5.6 | $ 10.8 | $ (11.5) | $ 30.7 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the U.S. Federal Statutory Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax at statutory rate | 21.00% | 35.00% | 35.00% |
State income provision (benefit) | 0.50% | (2.60%) | 0.90% |
Manufacturing and research incentives | (3.10%) | (1.70%) | (1.90%) |
Taxes on foreign income | 7.60% | (3.50%) | (4.80%) |
Repatriation of foreign income - Tax Act | (11.20%) | 11.10% | 0.00% |
Change in federal income tax statutory rate - Tax Act | 0.00% | (37.50%) | 0.00% |
Global intangible low taxed income | 1.50% | 0.00% | 0.00% |
Foreign derived intangible income | (1.30%) | 0.00% | 0.00% |
Adjustments for valuation allowances | (0.20%) | (11.20%) | 2.50% |
Discrete adjustments | (2.60%) | 0.00% | 0.00% |
Other items | (0.10%) | 0.90% | (1.70%) |
Effective tax rate | 12.10% | (9.50%) | 30.00% |
Income Taxes - Schedule of Sign
Income Taxes - Schedule of Significant Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Non-current deferred tax assets (liabilities): | ||
Inventories | $ 2.8 | $ 3.5 |
Accounts receivable | 1 | 0.9 |
Property, plant and equipment | (3.7) | (2.4) |
Intangible assets | (139.3) | (118) |
Deferred employee benefits | 20.1 | 19.9 |
Product warranty reserves | 7.6 | 7.5 |
Product liability reserves | 2.6 | 2.2 |
Loss carryforwards | 40.6 | 41.3 |
Other | 19.3 | 12.9 |
Non-current deferred tax liabilities | (49) | (32.2) |
Less valuation allowance | (40.7) | (41) |
Net non-current deferred tax liabilities | (89.7) | (73.2) |
Prepaids and other current assets | ||
Components of Deferred Tax Assets and Liabilities [Abstract] | ||
Income tax receivable | 15.6 | 4.3 |
Other non-current assets | ||
Components of Deferred Tax Assets and Liabilities [Abstract] | ||
Deferred tax asset | 14.6 | 18.1 |
Accrued expenses and other liabilities | ||
Components of Deferred Tax Assets and Liabilities [Abstract] | ||
Income taxes payable | (10.2) | (13.9) |
Other long-term liabilities | ||
Components of Deferred Tax Assets and Liabilities [Abstract] | ||
Income taxes payable | (0.9) | (12.5) |
Deferred income taxes | ||
Components of Deferred Tax Assets and Liabilities [Abstract] | ||
Deferred tax liabilities | $ (104.3) | $ (91.3) |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 12.3 | $ 12.5 | $ 16.6 |
Additions based on tax positions related to the current year | 0 | 0 | 0.8 |
Additions for tax positions of prior years | 3.3 | 0.2 | 1 |
Reductions for tax positions of prior years | (4.1) | (0.4) | 0 |
Reductions for equity adjustments | 0 | 0 | (4.3) |
Reductions for lapse of statute | 0 | 0 | (1.6) |
Balance at end of year | $ 11.5 | $ 12.3 | $ 12.5 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | 24 Months Ended | ||||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | ||||||||
Effective tax rate | 12.10% | (9.50%) | 30.00% | |||||
Tax Act - additional expense (benefit) compared to prior year | (15.40%) | |||||||
Impact of taxes on foreign income - expense (benefit) | 7.60% | (3.50%) | (4.80%) | |||||
Adjustments for valuation allowance - additional expense (benefit) benefit compared to prior year | 11.00% | |||||||
Discrete expense (benefit) | (2.60%) | 0.00% | 0.00% | |||||
Deferred tax assets - inventories | $ 2.8 | $ 3.5 | $ 2.8 | |||||
Domestic earnings before income taxes as a percent of total earnings | (9.00%) | 26.80% | 30.80% | |||||
Tax Act, change in tax rate - expense (benefit) | $ (45.5) | |||||||
Tax Act, transition tax, provisional expense | $ 13.5 | |||||||
Tax Act, transition tax, measurement period expense (benefit) | $ (10) | |||||||
Tax Act, repatriation of foreign income - expense (benefit) | (11.20%) | 11.10% | 0.00% | |||||
Tax Act, transition tax, total expense | 3.5 | |||||||
Tax Act, GILTI - expense (benefit) | 1.50% | 0.00% | 0.00% | |||||
Tax Act, FDII - expense (benefit) | (1.30%) | 0.00% | 0.00% | |||||
Cash and cash equivalents including restricted cash and cash equivalents of foreign entities | $ 72.4 | 72.4 | ||||||
Cash, cash equivalents and restricted cash | 73.2 | $ 108.8 | $ 41.5 | 73.2 | $ 61.7 | $ 71 | $ 119.1 | $ 32.6 |
Accrued interest and penalties | 1.5 | 0.2 | 1.5 | |||||
Unrecognized tax benefits that would impact the effective rate | 0.2 | 1.7 | 0.2 | |||||
Foreign Tax Authority | ||||||||
Operating Loss Carryforwards [Line Items] | ||||||||
Operating loss carryforwards | 180.2 | 180.2 | ||||||
Operating loss carryforwards valuation allowance | 134.2 | 134.2 | ||||||
Domestic Tax Authority | ||||||||
Operating Loss Carryforwards [Line Items] | ||||||||
Operating loss carryforwards | $ 63.3 | $ 63.3 | ||||||
Her Majesty's Revenue and Customs (HMRC) | Foreign Tax Authority | ||||||||
Operating Loss Carryforwards [Line Items] | ||||||||
Decrease in valuation allowance | 8.6 | |||||||
Valuation allowance | $ 36.8 |
Debt - Schedule of Outstanding
Debt - Schedule of Outstanding Debt (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Debt outstanding | $ 1,375.8 | $ 1,267.7 |
Current portion of capital leases | (1.1) | (0.7) |
Less unamortized debt issuance costs | (24.2) | (26.4) |
Less hedge accounting fair value adjustment | (13.7) | (8.4) |
Long-term debt and capital leases | 1,321.8 | 1,232.2 |
Total outstanding debt issuance cost | 27.3 | 28.6 |
Debt issuance cost revolving credit facility | 3.1 | 2.2 |
Revolving loan facility | ||
Debt Instrument [Line Items] | ||
Debt outstanding | $ 15 | $ 0 |
Weighted average interest rate | 4.06% | 0.00% |
Revolving loan facility | $ (15) | $ 0 |
Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Debt outstanding | $ 78 | $ 25 |
Weighted average interest rate | 4.70% | 4.41% |
Term Loan B facility | ||
Debt Instrument [Line Items] | ||
Debt outstanding | $ 855 | $ 815 |
Weighted average interest rate | 5.22% | 4.90% |
9.50% Senior Notes due 2024 | ||
Debt Instrument [Line Items] | ||
Debt outstanding | $ 425 | $ 425 |
Weighted average interest rate | 9.72% | 9.72% |
Interest rate, stated percentage | 9.50% | |
Capital leases | ||
Debt Instrument [Line Items] | ||
Debt outstanding | $ 2.8 | $ 2.7 |
Weighted average interest rate | 4.50% | 4.17% |
Current portion of capital leases | $ (1.1) | $ (0.7) |
Debt - Maturities of Debt (Deta
Debt - Maturities of Debt (Details) $ in Millions | Dec. 31, 2018USD ($) |
Debt Disclosure [Abstract] | |
2,019 | $ 15 |
2,020 | 0 |
2,021 | 3.3 |
2,022 | 3.3 |
2,023 | 81.3 |
Thereafter | 1,270.1 |
Long-term Debt | $ 1,373 |
Debt - Senior Secured Credit Fa
Debt - Senior Secured Credit Facilities (Details) | Oct. 23, 2018USD ($) | Apr. 13, 2018USD ($) | Sep. 07, 2017USD ($) | Mar. 06, 2017USD ($) | Mar. 03, 2016USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Feb. 02, 2018 |
Line of Credit Facility [Line Items] | |||||||||||||||||||
Maximum consolidated total leverage ratio | 5.25 | ||||||||||||||||||
Quarterly decrease to consolidated total leverage ratio | 0.25 | ||||||||||||||||||
Loss on debt extinguishment | $ 2,700,000 | $ 1,700,000 | $ 2,700,000 | ||||||||||||||||
Revolving credit facility | |||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||
Weighted average interest rate | 4.70% | 4.70% | 4.41% | ||||||||||||||||
Revolving credit facility | Revolving credit facility | |||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||
Credit facility amount outstanding | $ 78,000,000 | $ 78,000,000 | |||||||||||||||||
Term Loan B facility | |||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||
Aggregate principal amount | $ 975,000,000 | ||||||||||||||||||
Repayments of debt | 45,000,000 | $ 10,000,000 | $ 80,000,000 | $ 45,000,000 | $ 25,000,000 | ||||||||||||||
Write off of debt issuance costs | $ 1,000,000 | $ 200,000 | $ 1,400,000 | $ 800,000 | $ 500,000 | $ 2,700,000 | |||||||||||||
Debt issuance costs | $ 600,000 | $ 1,400,000 | |||||||||||||||||
Weighted average interest rate | 5.22% | 5.22% | 4.90% | ||||||||||||||||
Line of Credit | Revolving credit facility | |||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||
Maximum borrowing capacity | 1,200,000,000 | ||||||||||||||||||
Line of Credit | Revolving credit facility | Revolving credit facility | |||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||
Maximum borrowing capacity | $ 275,000,000 | 225,000,000 | |||||||||||||||||
Write off of debt issuance costs | $ 1,100,000 | $ 600,000 | |||||||||||||||||
Decrease to interest rate | 0.25% | 1.75% | |||||||||||||||||
Term of repricing premium | 6 months | 6 months | |||||||||||||||||
Repricing premium | 1.00% | 1.00% | |||||||||||||||||
Increase in maximum borrowing capacity | $ 50,000,000 | ||||||||||||||||||
Remaining borrowing capacity | $ 318,800,000 | $ 318,800,000 | |||||||||||||||||
Line of Credit | Revolving credit facility | Letter of Credit | |||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||
Maximum borrowing capacity | 20,000,000 | ||||||||||||||||||
Borrowings outstanding | $ 3,200,000 | $ 3,200,000 | |||||||||||||||||
Line of Credit | Revolving credit facility | Bridge Loan | |||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||
Maximum borrowing capacity | $ 40,000,000 | ||||||||||||||||||
Line of Credit | Amended 2016 Credit Agreement | |||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||
Write off of debt issuance costs | $ 1,700,000 | ||||||||||||||||||
Debt issuance costs | 12,800,000 | ||||||||||||||||||
Loss on debt extinguishment | 6,300,000 | ||||||||||||||||||
Line of Credit | Amended 2016 Credit Agreement | Revolving credit facility | |||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||
Maximum borrowing capacity | 400,000,000 | ||||||||||||||||||
Credit facility amount outstanding | $ 90,000,000 | ||||||||||||||||||
Maximum pro forma secured leverage ratio | 3.75 | ||||||||||||||||||
Line of Credit | Amended 2016 Credit Agreement | Letter of Credit | |||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||
Maximum borrowing capacity | $ 30,000,000 | ||||||||||||||||||
Line of Credit | Amended 2016 Credit Agreement | Term Loan B Facility | |||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||
Maximum consolidated total leverage ratio | 5.75 | ||||||||||||||||||
Credit facility amount outstanding | $ 900,000,000 | ||||||||||||||||||
Minimum consolidated interest coverage ratio | 2.5 | ||||||||||||||||||
Maximum consolidated total leverage ratio, allowed overage | 0.5 | ||||||||||||||||||
Maximum consolidated total leverage ratio, including allowed overage | 5.5 | ||||||||||||||||||
Line of Credit | Amended 2016 Credit Agreement | Revolving Credit Facility and Term Loans | |||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||
Maximum borrowing capacity | $ 275,000,000 | ||||||||||||||||||
LIBOR | Revolving credit facility | |||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||
Variable rate floor | 1.00% | 1.00% | 1.00% | ||||||||||||||||
LIBOR | Line of Credit | Revolving credit facility | Revolving credit facility | |||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||
Basis point spread | 2.50% | ||||||||||||||||||
LIBOR | Term Loans | Amended 2016 Credit Agreement | |||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||
Basis point spread | 2.50% | ||||||||||||||||||
Base rate | Revolving credit facility | |||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||
Alternate base rate | 1.00% | 1.00% | 1.00% | ||||||||||||||||
Base rate | Line of Credit | Revolving credit facility | Revolving credit facility | |||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||
Basis point spread | 1.50% | ||||||||||||||||||
Base rate | Line of Credit | Amended 2016 Credit Agreement | |||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||
Basis point spread | 1.00% | ||||||||||||||||||
Minimum | LIBOR | Revolving credit facility | |||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||
Basis point spread | 2.75% | 3.00% | 4.75% | ||||||||||||||||
Minimum | LIBOR | Revolving credit facility | Revolving credit facility | |||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||
Basis point spread | 1.50% | 1.50% | 1.50% | ||||||||||||||||
Minimum | LIBOR | Line of Credit | Amended 2016 Credit Agreement | Revolving credit facility | |||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||
Basis point spread | 1.50% | ||||||||||||||||||
Maximum | LIBOR | Revolving credit facility | Revolving credit facility | |||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||
Basis point spread | 2.75% | 2.75% | 2.75% | ||||||||||||||||
Maximum | LIBOR | Line of Credit | Amended 2016 Credit Agreement | Revolving credit facility | |||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||
Basis point spread | 2.50% | ||||||||||||||||||
Scenario, Forecast | |||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||
Maximum consolidated total leverage ratio | 4 | ||||||||||||||||||
Scenario, Forecast | Line of Credit | Amended 2016 Credit Agreement | Term Loan B Facility | |||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||
Maximum consolidated total leverage ratio | 4.25 | ||||||||||||||||||
Yearly reduction to maximum consolidated total leverage ratio | 0.5 | 0.25 | |||||||||||||||||
Minimum consolidated interest coverage ratio | 3 | ||||||||||||||||||
Yearly increase to minimum consolidated interest coverage ratio | 0.25 | ||||||||||||||||||
Long-term debt and capital leases | Line of Credit | Amended 2016 Credit Agreement | |||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||
Debt issuance costs | $ 4,600,000 | ||||||||||||||||||
Other non-current assets | Line of Credit | Amended 2016 Credit Agreement | |||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||
Debt issuance costs | $ 1,900,000 |
Debt - Senior Notes (Details)
Debt - Senior Notes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Feb. 18, 2016 | |
Debt Instrument [Line Items] | |||
Required debt repurchase price | 101.00% | ||
Aggregate principal amount outstanding | 25.00% | ||
Debt outstanding | $ 1,375,800,000 | $ 1,267,700,000 | |
9.50% Senior Notes due 2024 | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 9.50% | ||
Debt outstanding | $ 425,000,000 | $ 425,000,000 | |
Weighted average interest rate | 9.72% | 9.72% | |
Senior Notes | 9.50% Senior Notes due 2024 | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 9.50% | 9.50% | |
Aggregate principal amount | $ 425,000,000 | ||
Senior Notes | 9.50% Senior Notes due 2024 | Prior to February 15, 2019 | |||
Debt Instrument [Line Items] | |||
Debt redemption price percentage | 100.00% | ||
Maximum principal amount able to redeem when using proceeds of equity offerings | 35.00% | ||
Debt redemption price percentage when using proceeds of equity offerings | 109.50% |
Debt - Senior Note Redemption P
Debt - Senior Note Redemption Prices (Details) - Senior Notes - 9.50% Senior Notes due 2024 | 12 Months Ended |
Dec. 31, 2018 | |
Commencing February 15, 2019 | |
Debt Instrument, Redemption [Line Items] | |
Debt redemption price percentage | 107.125% |
Commencing February 15, 2020 | |
Debt Instrument, Redemption [Line Items] | |
Debt redemption price percentage | 104.75% |
Commencing February 15, 2021 | |
Debt Instrument, Redemption [Line Items] | |
Debt redemption price percentage | 102.375% |
Commencing February 15, 2022 and thereafter | |
Debt Instrument, Redemption [Line Items] | |
Debt redemption price percentage | 100.00% |
Debt - Revolving Loan Facility
Debt - Revolving Loan Facility (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Line of Credit Facility [Line Items] | ||||
Repayments of short-term borrowings | $ (15,000,000) | $ (4,000,000) | $ 0 | |
Line of Credit | Revolving Loan Facility Maturing April 2019 | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 30,000,000 | |||
Repayments of short-term borrowings | $ (15,000,000) | |||
LIBOR | Revolving Loan Facility Maturing April 2019 | ||||
Line of Credit Facility [Line Items] | ||||
Basis point spread | 1.90% |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) ₩ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||
Apr. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017EUR (€)swap | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2018MXN ($) | Dec. 31, 2018THB (฿) | Dec. 31, 2018SGD ($) | Dec. 31, 2018GBP (£) | Dec. 31, 2018CAD ($) | Apr. 19, 2018KRW (₩) | Mar. 31, 2018USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2017MXN ($) | Dec. 31, 2017THB (฿) | Dec. 31, 2017SGD ($) | Dec. 31, 2017GBP (£) | Dec. 31, 2017CAD ($) | Oct. 03, 2017USD ($) | Mar. 31, 2017USD ($)swap | Dec. 31, 2016EUR (€) | Dec. 31, 2016MXN ($) | Dec. 31, 2016THB (฿) | Dec. 31, 2016SGD ($) | Dec. 31, 2016GBP (£) | Dec. 31, 2016CAD ($) | |
Derivative [Line Items] | |||||||||||||||||||||||||||||
Cash flow hedge unrealized losses to be reclassified in twelve months | $ 1,200,000 | ||||||||||||||||||||||||||||
Minimum length of time hedged in cash flow hedge | 15 months | ||||||||||||||||||||||||||||
Maximum length of time hedged in cash flow hedge | 36 months | ||||||||||||||||||||||||||||
Interest expense | $ 89,000,000 | $ 86,900,000 | $ 85,200,000 | ||||||||||||||||||||||||||
Crem acquisition | |||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||
Derivative notional amount | ₩ | ₩ 1,800 | ||||||||||||||||||||||||||||
Cross-currency interest rate swap | |||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||
Derivative notional amount | € | € 50,000,000 | ||||||||||||||||||||||||||||
Derivative term | 3 years | ||||||||||||||||||||||||||||
Foreign currency exchange contracts | Crem acquisition | |||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||
Derivative notional amount | $ 223,800,000 | ||||||||||||||||||||||||||||
Settlement loss | $ 10,000,000 | ||||||||||||||||||||||||||||
Designated as Hedging Instrument | Interest rate swap contracts | |||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||
Number of derivative instruments | swap | 2 | 2 | |||||||||||||||||||||||||||
Derivative notional amount | $ 600,000,000 | ||||||||||||||||||||||||||||
Percentage of long term debt in hedge | 44.20% | 44.20% | 44.20% | 44.20% | 44.20% | 44.20% | 44.20% | ||||||||||||||||||||||
Interest expense | $ 300,000 | ||||||||||||||||||||||||||||
Designated as Hedging Instrument | Interest rate swap contracts | Interest Rate Swap, March 2019 | |||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||
Derivative notional amount | 175,000,000 | ||||||||||||||||||||||||||||
Designated as Hedging Instrument | Interest rate swap contracts | Interest Rate Swap, March 2020 | |||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||
Derivative notional amount | $ 425,000,000 | $ 425,000,000 | |||||||||||||||||||||||||||
Cash received on hedge | $ 7,700,000 | ||||||||||||||||||||||||||||
Designated as Hedging Instrument | Interest rate swap contracts | Interest Rate Swap, February 2024 | |||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||
Derivative notional amount | $ 425,000,000 | ||||||||||||||||||||||||||||
Percentage of long term debt in hedge | 31.30% | 31.30% | 31.30% | 31.30% | 31.30% | 31.30% | 31.30% | ||||||||||||||||||||||
Hedge ineffectiveness gain (loss) | $ 1,300,000 | $ (300,000) | |||||||||||||||||||||||||||
Designated as Hedging Instrument | Foreign currency exchange contracts | |||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||
Derivative notional amount | € 9,878,000 | $ 175,960,000 | ฿ 0 | $ 1,480,000 | £ 12,041,770 | $ 10,990,000 | € 8,545,000 | $ 126,400,000 | ฿ 0 | $ 1,765,000 | £ 7,807,744 | $ 18,080,000 | € 11,261,848 | $ 148,200,000 | ฿ 23,231,639 | $ 4,375,000 | £ 4,191,763 | $ 26,130,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Outstanding Commodity Contracts (Details) | 12 Months Ended | ||
Dec. 31, 2018MMBTUTt | Dec. 31, 2017MMBTUTt | Dec. 31, 2016MMBTUT | |
Designated as Hedging Instrument | Aluminum | |||
Derivative [Line Items] | |||
Commodity units hedged, mass | 1,446 | 1,620 | 1,663 |
Designated as Hedging Instrument | Copper | |||
Derivative [Line Items] | |||
Commodity units hedged, mass | 546 | 667 | 746 |
Designated as Hedging Instrument | Natural gas | |||
Derivative [Line Items] | |||
Commodity units hedged, energy | MMBTU | 0 | 0 | 56,416 |
Designated as Hedging Instrument | Steel | |||
Derivative [Line Items] | |||
Commodity units hedged, mass | 7,080 | 7,713 | 8,663 |
Not Designated as Hedging Instrument | Aluminum | |||
Derivative [Line Items] | |||
Commodity units hedged, mass | 0 | 0 | 28 |
Not Designated as Hedging Instrument | Steel | |||
Derivative [Line Items] | |||
Commodity units hedged, mass | 0 | 0 | 340 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Schedule of Currency Forward Contracts (Details) - Foreign currency exchange contracts | Dec. 31, 2018EUR (€) | Dec. 31, 2018MXN ($) | Dec. 31, 2018THB (฿) | Dec. 31, 2018SGD ($) | Dec. 31, 2018GBP (£) | Dec. 31, 2018CAD ($) | Dec. 31, 2018CHF (SFr) | Dec. 31, 2017EUR (€) | Dec. 31, 2017MXN ($) | Dec. 31, 2017THB (฿) | Dec. 31, 2017SGD ($) | Dec. 31, 2017GBP (£) | Dec. 31, 2017CAD ($) | Dec. 31, 2017CHF (SFr) | Dec. 31, 2016EUR (€) | Dec. 31, 2016MXN ($) | Dec. 31, 2016THB (฿) | Dec. 31, 2016SGD ($) | Dec. 31, 2016GBP (£) | Dec. 31, 2016CAD ($) | Dec. 31, 2016CHF (SFr) |
Designated as Hedging Instrument | |||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||
Derivative notional amount | € 9,878,000 | $ 175,960,000 | ฿ 0 | $ 1,480,000 | £ 12,041,770 | $ 10,990,000 | € 8,545,000 | $ 126,400,000 | ฿ 0 | $ 1,765,000 | £ 7,807,744 | $ 18,080,000 | € 11,261,848 | $ 148,200,000 | ฿ 23,231,639 | $ 4,375,000 | £ 4,191,763 | $ 26,130,000 | |||
Not Designated as Hedging Instrument | |||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||
Derivative notional amount | € 69,700,000 | $ 28,447,000 | £ 23,704,468 | SFr 5,300,000 | € 69,300,000 | $ 28,127,000 | £ 14,912,019 | SFr 4,800,000 | € 16,000,000 | $ 0 | £ 8,192,692 | SFr 3,150,000 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Schedule of the Effect of Derivative Instruments on the Consolidated Statement of Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Designated as Hedging Instrument | Cash Flow Hedging | |||
Derivative [Line Items] | |||
Pretax gain (loss) recognized in AOCI (effective portion) | $ (1.7) | $ 9 | $ 2.1 |
Pretax gain (loss) reclassified from AOCI into income (effective portion) | 1.6 | 4.4 | (1.5) |
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0.1 | 0.2 | 0 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency exchange contracts | |||
Derivative [Line Items] | |||
Pretax gain (loss) recognized in AOCI (effective portion) | (2.2) | 3.8 | (0.1) |
Designated as Hedging Instrument | Cash Flow Hedging | Commodity contracts | |||
Derivative [Line Items] | |||
Pretax gain (loss) recognized in AOCI (effective portion) | (1) | 2.4 | 2.2 |
Designated as Hedging Instrument | Cash Flow Hedging | Interest rate swap contracts | |||
Derivative [Line Items] | |||
Pretax gain (loss) recognized in AOCI (effective portion) | 1.5 | 2.8 | 0 |
Designated as Hedging Instrument | Net Investment Hedging | |||
Derivative [Line Items] | |||
Pretax gain (loss) recognized in AOCI (effective portion) | 2.7 | (7.5) | 0 |
Pretax gain (loss) reclassified from AOCI into income (effective portion) | 0 | 0 | 0 |
Designated as Hedging Instrument | Net Investment Hedging | Interest rate swap contracts | |||
Derivative [Line Items] | |||
Pretax gain (loss) recognized in AOCI (effective portion) | 2.7 | (7.5) | 0 |
Pretax gain (loss) reclassified from AOCI into income (effective portion) | 0 | 0 | 0 |
Designated as Hedging Instrument | Cost of sales | Cash Flow Hedging | Foreign currency exchange contracts | |||
Derivative [Line Items] | |||
Pretax gain (loss) reclassified from AOCI into income (effective portion) | (0.7) | 3.3 | 0 |
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0 | 0 | 0 |
Designated as Hedging Instrument | Cost of sales | Cash Flow Hedging | Commodity contracts | |||
Derivative [Line Items] | |||
Pretax gain (loss) reclassified from AOCI into income (effective portion) | 2.3 | 1.1 | (1.5) |
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0.1 | 0.2 | 0 |
Designated as Hedging Instrument | Interest expense | Cash Flow Hedging | Interest rate swap contracts | |||
Derivative [Line Items] | |||
Pretax gain (loss) reclassified from AOCI into income (effective portion) | 0 | 0 | 0 |
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0 | 0 | 0 |
Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Amount of gain (loss) recognized in income on derivative | (9.7) | (6.5) | 0.6 |
Not Designated as Hedging Instrument | Other expense — net | Foreign currency exchange contracts | |||
Derivative [Line Items] | |||
Amount of gain (loss) recognized in income on derivative | (9.7) | (6.5) | (0.2) |
Not Designated as Hedging Instrument | Other expense — net | Commodity contracts — short-term | |||
Derivative [Line Items] | |||
Amount of gain (loss) recognized in income on derivative | $ 0 | $ 0 | $ 0.8 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Schedule of Gain or Loss on the Hedged Items (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on hedged items | $ (4) | $ (9) | $ 0 |
Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on hedged items | 5.3 | 8.7 | 0 |
Interest rate swap contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on hedged items | (4) | (9) | 0 |
Interest rate swap contracts | Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on hedged items | $ 5.3 | $ 8.7 | $ 0 |
Derivative Financial Instrume_8
Derivative Financial Instruments - Schedule of the Fair Value of Outstanding Derivative Contracts Recorded as Assets in the Accompanying Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Asset derivatives at fair value | $ 9 | $ 7.4 |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Asset derivatives at fair value | 8.9 | 7.4 |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Asset derivatives at fair value | 0.1 | 0 |
Prepaids and other current assets | Designated as Hedging Instrument | Foreign currency exchange contracts | ||
Derivative [Line Items] | ||
Asset derivatives at fair value | 0.5 | 1.1 |
Prepaids and other current assets | Designated as Hedging Instrument | Commodity contracts | ||
Derivative [Line Items] | ||
Asset derivatives at fair value | 0.2 | 1.7 |
Prepaids and other current assets | Designated as Hedging Instrument | Interest rate swap contracts | ||
Derivative [Line Items] | ||
Asset derivatives at fair value | 4.8 | 1.7 |
Prepaids and other current assets | Not Designated as Hedging Instrument | Foreign currency exchange contracts | ||
Derivative [Line Items] | ||
Asset derivatives at fair value | 0.1 | 0 |
Other non-current assets | Designated as Hedging Instrument | Commodity contracts | ||
Derivative [Line Items] | ||
Asset derivatives at fair value | 0 | 0.6 |
Other non-current assets | Designated as Hedging Instrument | Interest rate swap contracts | ||
Derivative [Line Items] | ||
Asset derivatives at fair value | $ 3.4 | $ 2.3 |
Derivative Financial Instrume_9
Derivative Financial Instruments - Schedule of the Fair Value of Outstanding Derivative Contracts Recorded as Liabilities in the Accompanying Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Liability derivatives at fair value | $ 24.7 | $ 18.9 |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Liability derivatives at fair value | 24.4 | 18.4 |
Designated as Hedging Instrument | Accrued expenses and other liabilities | Foreign currency exchange contracts | ||
Derivative [Line Items] | ||
Liability derivatives at fair value | 1.5 | 0.6 |
Designated as Hedging Instrument | Accrued expenses and other liabilities | Commodity contracts | ||
Derivative [Line Items] | ||
Liability derivatives at fair value | 0.9 | 0.1 |
Designated as Hedging Instrument | Accrued expenses and other liabilities | Interest rate swap contracts | ||
Derivative [Line Items] | ||
Liability derivatives at fair value | 15.7 | 0 |
Designated as Hedging Instrument | Other long-term liabilities | Commodity contracts | ||
Derivative [Line Items] | ||
Liability derivatives at fair value | 0.4 | 0 |
Designated as Hedging Instrument | Other long-term liabilities | Interest rate swap contracts | ||
Derivative [Line Items] | ||
Liability derivatives at fair value | 5.9 | 17.7 |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Liability derivatives at fair value | 0.3 | 0.5 |
Not Designated as Hedging Instrument | Accrued expenses and other liabilities | Foreign currency exchange contracts | ||
Derivative [Line Items] | ||
Liability derivatives at fair value | $ 0.3 | $ 0.5 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 18, 2016 |
9.50% Senior Notes due 2024 | |||
Financial assets and liabilities accounted for at fair value on a recurring basis | |||
Interest rate, stated percentage | 9.50% | ||
Senior Notes | 9.50% Senior Notes due 2024 | |||
Financial assets and liabilities accounted for at fair value on a recurring basis | |||
Interest rate, stated percentage | 9.50% | 9.50% | |
Debt instrument at fair value | $ 457 | $ 483.8 | |
Secured Debt | Term Loan B Facility | |||
Financial assets and liabilities accounted for at fair value on a recurring basis | |||
Debt instrument at fair value | $ 815.5 | $ 818.1 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Financial Assets and Liabilities Accounted for at Fair Value on a Recurring Basis by Level within the Fair Value Hierarchy (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Total current assets at fair value | $ 37.6 | $ 24.4 |
Total non-current assets at fair value | 3.4 | 2.9 |
Total assets at fair value | 41 | 27.3 |
Total current liabilities at fair value | 18.4 | 1.2 |
Total non-current liabilities at fair value | 6.3 | 17.7 |
Total liabilities at fair value | 24.7 | 18.9 |
Foreign currency exchange contracts | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Short-term investment | 32 | 19.9 |
Derivative assets, current | 0.6 | 1.1 |
Total current liabilities at fair value | 1.8 | 1.1 |
Commodity contracts | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Derivative assets, current | 0.2 | 1.7 |
Total non-current assets at fair value | 0.6 | |
Total current liabilities at fair value | 0.9 | 0.1 |
Total non-current liabilities at fair value | 0.4 | |
Interest rate swap contracts | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Derivative assets, current | 4.8 | 1.7 |
Total non-current assets at fair value | 3.4 | 2.3 |
Total current liabilities at fair value | 15.7 | |
Total non-current liabilities at fair value | 5.9 | 17.7 |
Level 1 | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Total current assets at fair value | 0 | 0 |
Total non-current assets at fair value | 0 | 0 |
Total assets at fair value | 0 | 0 |
Total current liabilities at fair value | 0 | 0 |
Total non-current liabilities at fair value | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Level 1 | Foreign currency exchange contracts | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Short-term investment | 0 | 0 |
Derivative assets, current | 0 | 0 |
Total current liabilities at fair value | 0 | 0 |
Level 1 | Commodity contracts | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Derivative assets, current | 0 | 0 |
Total non-current assets at fair value | 0 | |
Total current liabilities at fair value | 0 | 0 |
Total non-current liabilities at fair value | 0 | |
Level 1 | Interest rate swap contracts | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Derivative assets, current | 0 | 0 |
Total non-current assets at fair value | 0 | 0 |
Total current liabilities at fair value | 0 | |
Total non-current liabilities at fair value | 0 | 0 |
Level 2 | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Total current assets at fair value | 37.6 | 24.4 |
Total non-current assets at fair value | 3.4 | 2.9 |
Total assets at fair value | 41 | 27.3 |
Total current liabilities at fair value | 18.4 | 1.2 |
Total non-current liabilities at fair value | 6.3 | 17.7 |
Total liabilities at fair value | 24.7 | 18.9 |
Level 2 | Foreign currency exchange contracts | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Short-term investment | 32 | 19.9 |
Derivative assets, current | 0.6 | 1.1 |
Total current liabilities at fair value | 1.8 | 1.1 |
Level 2 | Commodity contracts | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Derivative assets, current | 0.2 | 1.7 |
Total non-current assets at fair value | 0.6 | |
Total current liabilities at fair value | 0.9 | 0.1 |
Total non-current liabilities at fair value | 0.4 | |
Level 2 | Interest rate swap contracts | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Derivative assets, current | 4.8 | 1.7 |
Total non-current assets at fair value | 3.4 | 2.3 |
Total current liabilities at fair value | 15.7 | |
Total non-current liabilities at fair value | 5.9 | 17.7 |
Level 3 | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Total current assets at fair value | 0 | 0 |
Total non-current assets at fair value | 0 | 0 |
Total assets at fair value | 0 | 0 |
Total current liabilities at fair value | 0 | 0 |
Total non-current liabilities at fair value | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Level 3 | Foreign currency exchange contracts | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Short-term investment | 0 | 0 |
Derivative assets, current | 0 | 0 |
Total current liabilities at fair value | 0 | 0 |
Level 3 | Commodity contracts | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Derivative assets, current | 0 | 0 |
Total non-current assets at fair value | 0 | |
Total current liabilities at fair value | 0 | 0 |
Total non-current liabilities at fair value | 0 | |
Level 3 | Interest rate swap contracts | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Derivative assets, current | 0 | 0 |
Total non-current assets at fair value | 0 | 0 |
Total current liabilities at fair value | 0 | |
Total non-current liabilities at fair value | $ 0 | $ 0 |
Contingencies and Significant_2
Contingencies and Significant Estimates - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Site contingency | |||
Accruals for environmental matters | $ 0.7 | $ 0.8 | |
Product liability self-insurance retention levels per occurrence | 0.3 | ||
Self insurance reserve | 1 | ||
Product liability, self insurance retention level, aggregate | 2 | ||
Product liability reserves | 1.3 | 1.4 | |
Product liability reserves for actual cases | 0.6 | 0.4 | |
Product liability reserves for claims incurred but not reported | 0.7 | 1 | |
Reserve for warranty claims | 39.7 | $ 36 | $ 36.3 |
Canada | |||
Site contingency | |||
Self insurance reserve | 2 | ||
Self insurance reserve per occurrence | $ 0.1 |
Product Warranties - Narrative
Product Warranties - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Product Warranty Liability [Line Items] | ||
Customer advances | $ 2.7 | $ 4.2 |
Product Warranties Disclosures [Abstract] | ||
Standard product warranty, low end of range | 12 months | |
Standard product warranty, high end of range | 60 months | |
Accrued expenses and other liabilities | ||
Product Warranty Liability [Line Items] | ||
Customer advances | $ 2.2 | 3.1 |
Other long-term liabilities | ||
Product Warranty Liability [Line Items] | ||
Deferred revenues, noncurrent | $ 3.8 | $ 3.6 |
Product Warranties - Summary of
Product Warranties - Summary of Warranty Activity (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Warranty activity | ||
Balance at beginning of period | $ 36 | $ 36.3 |
Accruals for warranties issued | 39.5 | 33.3 |
Settlements made (in cash or in kind) | (35.1) | (34.4) |
Currency translation impact | (0.7) | 0.8 |
Balance at end of period | 39.7 | 36 |
Long-term warranty liabilities | $ 11.8 | $ 11.9 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) $ in Millions | Apr. 19, 2018USD ($)plan | Oct. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015plan | Dec. 31, 2014plan | Dec. 31, 2013USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Number of defined benefit pension plans | plan | 2 | ||||||||
Multiemployer plans cost | $ 0.9 | ||||||||
Plan obligation assumed | $ 0.6 | ||||||||
Decrease in pension obligation for transfer | $ 7.9 | ||||||||
Pension settlement loss | $ 2.4 | ||||||||
Withdrawal obligation | 11.3 | 11.3 | $ 12.2 | $ 17.5 | |||||
Multiemployer plan, withdrawal obligation quarterly installment payment amount | 0.5 | ||||||||
Number of defined contribution retirement plans for the employees | plan | 3 | ||||||||
Defined contribution plan costs | 4 | 2.8 | 2 | ||||||
Welbilt Deferred Compensation Plan | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Deferred compensation plan assets, fair value | 4.2 | 4.2 | 5.1 | ||||||
Company stock held in trust | 0.3 | 0.3 | 0.2 | ||||||
Deferred compensation liability | (4.5) | (4.5) | (5.3) | ||||||
Crem acquisition | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Number of defined benefit pension plans | plan | 2 | ||||||||
Pension Plans | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Plan obligation assumed | 0 | 55.6 | |||||||
Pension plan assets assumed | 0.2 | 0 | 34.1 | ||||||
Pension settlement loss | 2.4 | 0 | 0 | ||||||
Minimum contribution next twelve months | 8.3 | 8.3 | |||||||
Expected company paid claims | $ 16 | 16 | |||||||
Pension Plans | Crem acquisition | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Plan obligation assumed | $ 0.6 | ||||||||
Pension plan assets assumed | $ 0.2 | ||||||||
Postretirement Health and Other Plans | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Plan obligation assumed | 0 | 0 | 6.8 | ||||||
Pension plan assets assumed | 0 | 0 | |||||||
Net transfer | 28.3 | ||||||||
Pension gains recognized in AOCI | 6.1 | ||||||||
Pension settlement loss | $ 0 | $ 0 | $ 0 | ||||||
Annual rate of increase in health care benefits percent | 6.10% | 6.10% | |||||||
Ultimate health care cost trend rate percent | 4.50% | 4.50% | |||||||
Expected company paid claims | $ 1.1 | $ 1.1 |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Components of Period Benefit Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Settlement loss recognized | $ 2.4 | |||
Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost - benefits earned during the year | $ 0.1 | $ 0 | $ 0.2 | |
Interest cost of projected benefit obligation | 5.2 | 5.4 | 8.3 | |
Expected return on assets | (5.8) | (6.2) | (6.2) | |
Amortization of actuarial net loss | 2.2 | 2 | 2.5 | |
Settlement loss recognized | 2.4 | 0 | 0 | |
Net periodic benefit cost | $ 4.1 | $ 1.2 | $ 4.8 | |
Weighted average assumptions: | ||||
Discount rate | 2.80% | 3.10% | 3.90% | |
Expected return on plan assets | 3.20% | 3.60% | 3.70% | |
Rate of compensation increase | 2.00% | 0.00% | 4.00% | |
Postretirement Health and Other Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost - benefits earned during the year | $ 0 | $ 0 | $ 0 | |
Interest cost of projected benefit obligation | 0.3 | 0.3 | 0.4 | |
Expected return on assets | 0 | 0 | 0 | |
Amortization of actuarial net loss | 0.2 | 0 | 0 | |
Settlement loss recognized | 0 | 0 | 0 | |
Net periodic benefit cost | $ 0.5 | $ 0.3 | $ 0.4 | |
Weighted average assumptions: | ||||
Discount rate | 3.20% | 3.50% | 3.90% | |
Rate of compensation increase | 1.50% | 1.50% | 1.50% |
Employee Benefit Plans - Reconc
Employee Benefit Plans - Reconciliation of the Changes in Benefit Obligation, the Changes in Plan Assets, and the Funded Status (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Change in Benefit Obligations | |||
Acquisition | $ 0.6 | ||
Change in Plan Assets | |||
Fair value of plan assets, beginning of year | 176.7 | ||
Fair value of plan assets, end of year | 152.6 | $ 176.7 | |
Weighted-Average Assumptions | |||
Short term portion of pension obligation | 0.9 | 0.7 | |
Short term portion of other benefit obligation | 1.1 | 1.2 | |
Pension Plans | |||
Change in Benefit Obligations | |||
Benefit obligation, beginning of year | 216.8 | 203.9 | |
Service cost | 0.1 | 0 | $ 0.2 |
Interest cost | 5.2 | 5.4 | 8.3 |
Participant contributions | 0 | 0 | |
Plan settlements | (7.9) | 0 | |
Plan amendments | (0.6) | 0 | |
Acquisition | 0 | 55.6 | |
Actuarial (gain)/loss | (9) | 7.7 | |
Currency translation adjustment | (7.4) | 13.8 | |
Benefits paid | (11.3) | (14) | |
Benefit obligation, end of year | 186.5 | 216.8 | 203.9 |
Change in Plan Assets | |||
Fair value of plan assets, beginning of year | 176.7 | 163.8 | |
Actual return on plan assets | (6.8) | 9.2 | |
Employer contributions | 8.4 | 5.4 | |
Participant contributions | 0 | 0 | |
Plan settlements | (7.9) | 0 | |
Currency translation adjustment | (6.7) | 12.3 | |
Acquisition | 0.2 | 0 | 34.1 |
Benefits paid | (11.3) | (14) | |
Fair value of plan assets, end of year | 152.6 | 176.7 | 163.8 |
Funded status | $ (33.9) | $ (40.1) | |
Weighted-Average Assumptions | |||
Discount rate | 3.30% | 2.80% | |
Rate of compensation increase | 2.00% | 0.00% | |
Postretirement Health and Other Plans | |||
Change in Benefit Obligations | |||
Benefit obligation, beginning of year | $ 10.1 | $ 9 | |
Service cost | 0 | 0 | 0 |
Interest cost | 0.3 | 0.3 | 0.4 |
Participant contributions | 0.7 | 0.6 | |
Plan settlements | 0 | 0 | |
Plan amendments | (1.5) | 0 | |
Acquisition | 0 | 0 | 6.8 |
Actuarial (gain)/loss | 0.5 | 1.7 | |
Currency translation adjustment | (0.1) | 0.1 | |
Benefits paid | (2.7) | (1.6) | |
Benefit obligation, end of year | 7.3 | 10.1 | 9 |
Change in Plan Assets | |||
Fair value of plan assets, beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 2 | 1 | |
Participant contributions | 0.7 | 0.6 | |
Plan settlements | 0 | 0 | |
Currency translation adjustment | 0 | 0 | |
Acquisition | 0 | 0 | |
Benefits paid | (2.7) | (1.6) | |
Fair value of plan assets, end of year | 0 | 0 | $ 0 |
Funded status | $ (7.3) | $ (10.1) | |
Weighted-Average Assumptions | |||
Discount rate | 3.80% | 3.20% | |
Rate of compensation increase | 3.00% | 1.50% |
Employee Benefit Plans - Amount
Employee Benefit Plans - Amounts Recognized in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss | $ (41.8) | $ (44.3) |
Prior service credit | 0.6 | 0 |
Total amount recognized | 41.2 | 44.3 |
Postretirement Health and Other Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss | (2.5) | (2.2) |
Prior service credit | 1.5 | 0 |
Total amount recognized | $ 1 | $ 2.2 |
Employee Benefit Plans - Summar
Employee Benefit Plans - Summary of the Sensitivity of Retirement Obligations and Retirement Benefit Costs of Plans to Changes in the Key Assumptions (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Pension Plans | |
Estimated increase (decrease) in 2019 pension cost | |
0.50% increase in discount rate | $ (0.5) |
0.50% decrease in discount rate | 0.6 |
0.50% increase in long-term return on assets | (0.7) |
0.50% decrease in long-term return on assets | 0.7 |
Estimated increase (decrease) in projected benefit obligation for the year ended December 31, 2018 | |
0.50% increase in discount rate | (13.3) |
0.50% decrease in discount rate | 14.5 |
Postretirement Health and Other Plans | |
Estimated increase (decrease) in 2019 pension cost | |
0.50% increase in discount rate | 0 |
0.50% decrease in discount rate | 0 |
Estimated increase (decrease) in projected benefit obligation for the year ended December 31, 2018 | |
0.50% increase in discount rate | (0.2) |
0.50% decrease in discount rate | $ 0.2 |
Employee Benefit Plans - Sche_2
Employee Benefit Plans - Schedule of the Weighted-Average Asset Allocations of the Pension Plans (Details) | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocations | 100.00% | 100.00% |
Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocations | 14.20% | 17.60% |
Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocations | 32.10% | 34.60% |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocations | 53.70% | 47.80% |
Employee Benefit Plans - Sche_3
Employee Benefit Plans - Schedule of the Actual Allocations for the Pension Assets and Target Allocations by Asset Class (Details) | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocations | 100.00% | 100.00% |
Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocations | 18.50% | |
Weighted-average asset allocations | 14.20% | 17.60% |
Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocations | 38.90% | |
Weighted-average asset allocations | 32.10% | 34.60% |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocations | 42.60% | |
Weighted-average asset allocations | 53.70% | 47.80% |
Employee Benefit Plans - Sche_4
Employee Benefit Plans - Schedule of Plan Assets Using the Fair Value Hierarchy (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Plan assets using fair value hierarchy | |||
Fair value of plan assets | $ 152.6 | $ 176.7 | |
Cash | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 6.1 | 2.4 | |
Insurance group annuity contracts | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 65.6 | 74.6 | |
Common/collective trust funds - Government, corporate and other non-government debt | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 49 | 63.2 | |
Common/collective trust funds - Corporate equity | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 21.7 | 30.4 | |
Common/collective trust funds - Customized strategy | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 10.2 | 6.1 | |
Level 1 | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 6.1 | 2.4 | |
Level 1 | Cash | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 6.1 | 2.4 | |
Level 1 | Insurance group annuity contracts | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 0 | 0 | |
Level 1 | Common/collective trust funds - Government, corporate and other non-government debt | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 0 | 0 | |
Level 1 | Common/collective trust funds - Corporate equity | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 0 | 0 | |
Level 1 | Common/collective trust funds - Customized strategy | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 0 | 0 | |
Level 2 | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 80.9 | 99.7 | |
Level 2 | Cash | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 0 | 0 | |
Level 2 | Insurance group annuity contracts | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 0 | 0 | |
Level 2 | Common/collective trust funds - Government, corporate and other non-government debt | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 49 | 63.2 | |
Level 2 | Common/collective trust funds - Corporate equity | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 21.7 | 30.4 | |
Level 2 | Common/collective trust funds - Customized strategy | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 10.2 | 6.1 | |
Level 3 | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 65.6 | 74.6 | |
Level 3 | Cash | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | Insurance group annuity contracts | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 65.6 | 74.6 | $ 72.2 |
Level 3 | Common/collective trust funds - Government, corporate and other non-government debt | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | Common/collective trust funds - Corporate equity | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | Common/collective trust funds - Customized strategy | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | $ 0 | $ 0 |
Employee Benefit Plans - Reco_2
Employee Benefit Plans - Reconciliation of the Fair Values Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) from the Beginning of the Year to the End of the Year (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of fair value measurements of plan assets using significant observable inputs | ||
Fair value of plan assets, beginning of year | $ 176.7 | |
Fair value of plan assets, end of year | 152.6 | $ 176.7 |
Level 3 | ||
Reconciliation of fair value measurements of plan assets using significant observable inputs | ||
Fair value of plan assets, beginning of year | 74.6 | |
Fair value of plan assets, end of year | 65.6 | 74.6 |
Insurance group annuity contracts | ||
Reconciliation of fair value measurements of plan assets using significant observable inputs | ||
Fair value of plan assets, beginning of year | 74.6 | |
Fair value of plan assets, end of year | 65.6 | 74.6 |
Insurance group annuity contracts | Level 3 | ||
Reconciliation of fair value measurements of plan assets using significant observable inputs | ||
Fair value of plan assets, beginning of year | 74.6 | 72.2 |
Acquisition | 0.2 | 0 |
Contributions | 0.1 | 0 |
Actual return on assets | (1.2) | 0 |
Benefit payments | (4.6) | (4.6) |
Foreign currency impact | (3.5) | 7 |
Fair value of plan assets, end of year | $ 65.6 | $ 74.6 |
Employee Benefit Plans - Sche_5
Employee Benefit Plans - Schedule of Projected Benefit Payments from the Plans (Details) $ in Millions | Dec. 31, 2018USD ($) |
Pension Plans | |
Projected benefit payments from the plans | |
2,019 | $ 16 |
2,020 | 11.1 |
2,021 | 11.4 |
2,022 | 11.7 |
2,023 | 12.2 |
2024-2028 | 65.9 |
Postretirement Health and Other Plans | |
Projected benefit payments from the plans | |
2,019 | 1.1 |
2,020 | 1 |
2,021 | 1 |
2,022 | 1.1 |
2,023 | 0.9 |
2024-2028 | $ 2.4 |
Employee Benefit Plans - Fair V
Employee Benefit Plans - Fair Value of Plan Assets for Which the Accumulated Benefit Obligation is in Excess of the Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 186.5 | $ 216.8 |
Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | 186.5 | 216.8 |
Fair value of plan assets | $ 152.6 | $ 176.7 |
Restructuring - Rollforward of
Restructuring - Rollforward of all Restructuring Activities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Rollforward of all restructuring activities | |||
Beginning balance | $ 16.1 | $ 14.4 | |
Restructuring expense | 6 | 10.8 | $ 2.5 |
Use of reserve | (8.7) | (6.2) | |
Non-cash adjustment | (0.3) | (2.9) | |
Ending balance | $ 13.1 | $ 16.1 | $ 14.4 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Millions | Jan. 02, 2017 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2018 | Jun. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 |
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Short term portion of liability | $ 3 | $ 3 | $ 3 | $ 5 | $ 3 | $ 5 | ||||||||
Long term portion of liability | 10.1 | 10.1 | 10.1 | 11.1 | 10.1 | 11.1 | ||||||||
Restructuring expense | 6 | 10.8 | $ 2.5 | |||||||||||
Vice President | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Severance payment period | 18 months | |||||||||||||
Severance cost, including accelerated vesting of stock-based compensation | 2.2 | |||||||||||||
Share-based compensation accelerated vesting | 1.1 | |||||||||||||
Vested benefits payable | $ 2.5 | |||||||||||||
Benefits interest rate | 9.00% | |||||||||||||
Vested benefits payment term | 5 years | |||||||||||||
Chief Financial Officer | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Share-based compensation accelerated vesting | 1.5 | |||||||||||||
Severance costs | $ 2.5 | |||||||||||||
Chief Executive Officer | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Severance costs | $ 0.8 | |||||||||||||
Reversal of expense from forfeiture of unvested stock awards and accrued incentive compensation | 3.7 | |||||||||||||
Facility Closing | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Restructuring expense | 0.8 | $ 1.7 | $ 3.8 | |||||||||||
Facility Closing | Closure of Cleveland Facility | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Net purchase price | $ 2.2 | |||||||||||||
Gain (loss) on sale | (0.4) | |||||||||||||
Facility Closing | Closure of Singapore Facility | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Net purchase price | $ 6.2 | |||||||||||||
Gain (loss) on sale | 3.8 | |||||||||||||
Facility Closing | Closure of Sellersburg Plant | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Net purchase price | $ 4.8 | |||||||||||||
Gain (loss) on sale | 1.1 | |||||||||||||
Employee Severance | August 2017 RIF | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Restructuring expense | 3.6 | |||||||||||||
Share-based compensation accelerated vesting | 0.3 | |||||||||||||
Employee Severance | December 2017 RIF | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Restructuring expense | 0.2 | $ 1.7 | $ 1.9 | |||||||||||
Employee Severance | March 2018 Restructuring | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Restructuring expense | 0.1 | 0.1 | $ 0.4 | $ 0.6 | ||||||||||
Employee Severance | Q2 2018 RIF | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Restructuring expense | $ 1.4 | |||||||||||||
Employee Severance | Americas Region RIF | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Restructuring expense | $ 0.3 | $ 2.7 | 3 | |||||||||||
Additional Share Based Compensation | Americas Region RIF | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Restructuring expense | $ 0.3 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Equity [Abstract] | ||
Foreign currency translation, net of income tax benefit of $2.1 million and $2.8 million at December 31, 2018 and 2017, respectively | $ (6.5) | $ 4.4 |
Derivative instrument fair market value, net of income tax expense of $1.3 million and $1.8 million at December 31, 2018 and 2017, respectively | 0.8 | 3.6 |
Employee pension and postretirement benefit adjustments, net of income tax benefit of $6.3 million and $6.5 million at December 31, 2018 and 2017, respectively | (35.9) | (40) |
Accumulated other comprehensive loss | (41.6) | (32) |
Foreign currency translation, income tax expense (benefit) | (2.1) | (2.8) |
Derivative instruments, income tax expense (benefit) | 1.3 | 1.8 |
Employee pension and postretirement benefit adjustments, income tax expense (benefit) | $ (6.3) | $ (6.5) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Schedule of Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | $ 125.3 | $ 103.6 | $ 103.6 | $ 103.6 | $ (56.4) | $ 1,211.6 |
Other comprehensive income (loss) before reclassifications | (12.4) | 12.6 | (1.3) | |||
Amounts reclassified out | 3.2 | (2.4) | 4 | |||
Tax effect | (0.4) | 1.2 | (1.6) | |||
Total other comprehensive (loss) income, net of tax | (8.3) | 2.5 | (5.8) | (9.6) | 11.4 | 1.1 |
Ending balance | 133.7 | 125.3 | 133.7 | 186.4 | 103.6 | (56.4) |
Foreign Currency Translation | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | 4.4 | 4.4 | 4.4 | (9.8) | (7.9) | |
Other comprehensive income (loss) before reclassifications | (10.2) | 11.4 | (1.9) | |||
Amounts reclassified out | 0 | 0 | 0 | |||
Tax effect | (0.7) | 2.8 | 0 | |||
Total other comprehensive (loss) income, net of tax | (10.9) | 14.2 | (1.9) | |||
Ending balance | (6.5) | 4.4 | (9.8) | |||
Gains and Losses on Cash Flow Hedges | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | 3.6 | 3.6 | 3.6 | 0.8 | (1.8) | |
Other comprehensive income (loss) before reclassifications | (1.7) | 9 | 2.1 | |||
Amounts reclassified out | (1.6) | (4.4) | 1.5 | |||
Tax effect | 0.5 | (1.8) | (1) | |||
Total other comprehensive (loss) income, net of tax | (2.8) | 2.8 | 2.6 | |||
Ending balance | 0.8 | 3.6 | 0.8 | |||
Pension & Postretirement | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | (40) | (40) | (40) | (34.4) | (34.8) | |
Other comprehensive income (loss) before reclassifications | (0.5) | (7.8) | (1.5) | |||
Amounts reclassified out | 4.8 | 2 | 2.5 | |||
Tax effect | (0.2) | 0.2 | (0.6) | |||
Total other comprehensive (loss) income, net of tax | 4.1 | (5.6) | 0.4 | |||
Ending balance | (35.9) | (40) | (34.4) | |||
Accumulated Other Comprehensive (Loss) Income | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | (29.5) | (32) | (32) | (32) | (43.4) | (44.5) |
Total other comprehensive (loss) income, net of tax | (9.6) | 11.4 | 1.1 | |||
Ending balance | $ (37.8) | $ (29.5) | $ (37.8) | $ (41.6) | $ (32) | $ (43.4) |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Loss - Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Cost of sales | $ 1,020.9 | $ 908.5 | $ 922.3 | |||||||||
Other expense — net | (29.8) | (10.6) | (14) | |||||||||
Total before tax | 89 | 121.4 | 102.2 | |||||||||
Tax effect | $ (5.2) | $ (0.4) | $ (5.6) | (10.8) | 11.5 | (30.7) | ||||||
Net earnings | $ 27 | $ 26.8 | $ 12 | $ 12.4 | $ 66.9 | $ 30.7 | $ 28.4 | $ 6.9 | $ 24.4 | 78.2 | 132.9 | 71.5 |
Total reclassifications for the period | ||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Net earnings | (2.7) | 1.5 | (2.4) | |||||||||
Total reclassifications for the period | Gains (losses) on cash flow hedges | ||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Total before tax | 1.6 | 4.4 | (1.5) | |||||||||
Tax effect | (0.3) | (1.6) | 0.6 | |||||||||
Net earnings | 1.3 | 2.8 | (0.9) | |||||||||
Total reclassifications for the period | Actuarial losses | ||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Other expense — net | (2.4) | (2) | (2.5) | |||||||||
Total reclassifications for the period | Pension settlement | ||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Other expense — net | (2.4) | 0 | 0 | |||||||||
Total reclassifications for the period | Pension and postretirement | ||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Total before tax | (4.8) | (2) | (2.5) | |||||||||
Tax effect | 0.8 | 0.7 | 1 | |||||||||
Net earnings | (4) | (1.3) | (1.5) | |||||||||
Total reclassifications for the period | Foreign currency exchange contracts | Gains (losses) on cash flow hedges | ||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Cost of sales | (0.7) | 3.3 | 0 | |||||||||
Total reclassifications for the period | Commodity contracts | Gains (losses) on cash flow hedges | ||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Cost of sales | $ 2.3 | $ 1.1 | $ (1.5) |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Leases [Abstract] | |||
Rental expense attributed to operating leases | $ 19.3 | $ 17.1 | $ 12.8 |
Leases - Future Minimum Rental
Leases - Future Minimum Rental Obligations Under Non-Cancelable Operating Leases (Details) $ in Millions | Dec. 31, 2018USD ($) |
Future minimum rental obligations under non-cancelable operating leases | |
2,019 | $ 15.1 |
2,020 | 10.8 |
2,021 | 6.7 |
2,022 | 3.6 |
2,023 | 1.5 |
Thereafter | 5.9 |
Total | $ 43.6 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) shares in Millions, $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($)shares | |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense | $ 1.7 |
Recognition period for unrecognized compensation expense | 2 years 7 months 6 days |
Restricted stock awards and units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
Unrecognized compensation expense | $ 2.5 |
Recognition period for unrecognized compensation expense | 1 year 10 months 24 days |
Performance share units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
Unrecognized compensation expense | $ 4.2 |
Recognition period for unrecognized compensation expense | 1 year 8 months 12 days |
MFS 2016 Omnibus Incentive Compensation Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares authorized under share based compensation plans (in shares) | shares | 9.9 |
Directors | Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expiration period | 10 years |
Directors | Plans Prior to 2011 | Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expiration period | 10 years |
Vesting percentage | 25.00% |
Vesting period | 4 years |
Directors | Plans Subsequent to 2011 | Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expiration period | 10 years |
Vesting percentage | 25.00% |
Vesting period | 4 years |
Minimum | Performance share units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting percentage | 0.00% |
Maximum | Performance share units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting percentage | 200.00% |
Grants in 2018 | Directors | Restricted stock awards and units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 1 year |
Grants in 2017 | Directors | Restricted stock awards and units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 2 years |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | $ 7 | $ 11.1 | $ 6.3 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 1.5 | 3 | 1.2 |
Restricted stock awards and units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 3 | 3.6 | 3 |
Performance share units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 2.5 | 4.5 | 2.1 |
Selling, general and administrative expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 6.6 | 8.1 | 4.7 |
Separation expense | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 0.1 | 0.1 | 1.6 |
Restructuring expense | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | $ 0.3 | $ 2.9 | $ 0 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of the Company's Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Options | ||
Options outstanding at the beginning of the period (in shares) | 2.7 | |
Granted (in shares) | 0.4 | |
Exercised (in shares) | (0.5) | |
Forfeited (in shares) | (0.2) | |
Canceled (in shares) | (0.3) | |
Options outstanding at the end of the period (in shares) | 2.1 | 2.7 |
Options vested and expected to vest (in shares) | 2 | |
Options exercisable (in shares) | 1.6 | |
Weighted Average Exercise Price | ||
Options outstanding at the beginning of the period (in dollars per share) | $ 15.95 | |
Granted (in dollars per share) | 20.26 | |
Exercised (in dollars per share) | 13.63 | |
Forfeited (in dollars per share) | 17.69 | |
Canceled (in dollars per share) | 30 | |
Options outstanding at the end of the period (in dollars per share) | 14.85 | $ 15.95 |
Options vested and expected to vest (in dollars per share) | 14.82 | |
Options exercisable (in dollars per share) | $ 13.83 | |
Weighted Average Remaining Contractual Life (Years) | ||
Options outstanding | 4 years 10 months 24 days | 4 years 10 months 24 days |
Options vested and expected to vest | 4 years 10 months 24 days | |
Options exercisable | 4 years | |
Aggregate Intrinsic Value | ||
Options outstanding | $ 1.5 | $ 22.9 |
Options vested and expected to vest | 1.5 | |
Options exercisable | $ 1.5 | |
Exercise Price, low end of range (in dollars per share) | $ 3.51 | |
Exercise Price, high end of range (in dollars per share) | $ 31.14 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of the Assumptions Used to Estimate the Fair Value of Options Granted (Details) - Stock options | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life | 6 years | 6 years | 6 years |
Risk-free Interest rate | 2.70% | 2.30% | 1.60% |
Expected volatility | 29.00% | 39.00% | 39.00% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Stock-Based Compensation - Sc_3
Stock-Based Compensation - Schedule of Option Compensation Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Weighted average grant date fair value per option granted | $ 6.84 | $ 7.86 | $ 5.97 |
Fair value of options vested | $ 1.7 | $ 3 | $ 2.8 |
Intrinsic value of options exercised | 3.3 | 7.5 | 8.5 |
Excess tax benefit for tax deductions related to the exercise of stock options | 0.8 | 1.2 | 0 |
Cash received from option exercises, net of tax withholding | 5.1 | 1.9 | 12.9 |
Tax benefits for stock-option compensation expense | $ 0.4 | $ 0.7 | $ 0.5 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Activity for Restricted Stock Units and Performance Shares (Details) - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restricted stock awards and units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Unvested beginning of period (in shares) | 0.7 | ||
Granted (in shares) | 0.1 | ||
Vested (in shares) | (0.4) | ||
Unvested end of period (in shares) | 0.4 | 0.7 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Unvested beginning of period (in dollars per share) | $ 17.14 | ||
Granted (in dollars per share) | 18.15 | $ 21.39 | $ 15.25 |
Vested (in dollars per share) | 17.21 | ||
Unvested end of period (in dollars per share) | $ 17.48 | $ 17.14 | |
Performance share units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Unvested beginning of period (in shares) | 0.5 | ||
Granted (in shares) | 0.4 | ||
Vested (in shares) | (0.2) | ||
Forfeited (in shares) | (0.3) | ||
Unvested end of period (in shares) | 0.4 | 0.5 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Unvested beginning of period (in dollars per share) | $ 16.87 | ||
Granted (in dollars per share) | 20.25 | $ 18.70 | $ 14.97 |
Vested (in dollars per share) | 15.01 | ||
Forfeited (in dollars per share) | 17.86 | ||
Unvested end of period (in dollars per share) | $ 19.57 | $ 16.87 | |
Shares vested in period, performance period | 3 years | ||
Shares vested in period, percentage earned and distributed | 142.30% |
Stock-Based Compensation - Sc_4
Stock-Based Compensation - Schedule of Restricted Stock Units and Restricted Stock Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Tax benefits for restricted stock compensation expense | $ 0.4 | $ 0.7 | $ 0.5 |
Restricted stock awards and units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value per award granted | $ 18.15 | $ 21.39 | $ 15.25 |
Fair value of awards vested | $ 8.1 | $ 4 | $ 2.8 |
Tax benefits for restricted stock compensation expense | $ 0.7 | $ 0.8 | $ 1.2 |
Stock-Based Compensation - Sc_5
Stock-Based Compensation - Schedule of Performance Based Unit Programs (Details) - Performance share units shares in Millions | 12 Months Ended |
Dec. 31, 2018shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
PSU's outstanding (in shares) | 0.4 |
2017 Program | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
PSU's outstanding (in shares) | 0.2 |
Expected Vesting Threshold | 100.00% |
2018 Program | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
PSU's outstanding (in shares) | 0.2 |
Expected Vesting Threshold | 100.00% |
Stock-Based Compensation - Sc_6
Stock-Based Compensation - Schedule of Performance Share Unit Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Tax benefits for stock-option compensation expense | $ 0.4 | $ 0.7 | $ 0.5 |
Performance share units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value per award granted | $ 20.25 | $ 18.70 | $ 14.97 |
Fair value of awards vested | $ 2.6 | $ 3 | $ 3.6 |
Tax benefits for stock-option compensation expense | $ 0.6 | $ 1 | $ 0.8 |
Other Expense - Net (Details)
Other Expense - Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |||
Foreign currency transaction losses | $ 20.1 | $ 6.5 | $ 4 |
Amortization of debt issuance costs | 5.5 | 5.5 | 4.7 |
Other | 4.2 | (1.4) | 5.3 |
Other expense — net | 29.8 | $ 10.6 | $ 14 |
Crem acquisition | |||
Other Income (Expense) [Line Items] | |||
Foreign exchange loss | $ 10 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - USD ($) shares in Millions | Mar. 04, 2016 | Mar. 03, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Number of anti-dilutive shares excluded from the calculation of diluted earnings per share (in shares) | 0.6 | 0.8 | 3.6 | ||
Dividends paid to stockholders | $ 0 | $ 0 | $ 0 | ||
Parent | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Dividend paid to parent | $ 1,362,000,000 | ||||
Common Stock | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Shares of common stock issued (in shares) | 137 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of the Numerator and Denominator used to Compute Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||
Net earnings | $ 27 | $ 26.8 | $ 12 | $ 12.4 | $ 66.9 | $ 30.7 | $ 28.4 | $ 6.9 | $ 24.4 | $ 78.2 | $ 132.9 | $ 71.5 |
Basic weighted average common shares outstanding (in shares) | 140,023,635 | 138,995,541 | 137,906,284 | |||||||||
Effect of dilutive securities: | ||||||||||||
Effect of dilutive securities (in shares) | 1,365,150 | 1,711,551 | 1,807,836 | |||||||||
Diluted weighted average common shares outstanding (in shares) | 141,388,785 | 140,707,092 | 139,714,120 | |||||||||
Earnings per share — Basic (in dollars per share) | $ 0.19 | $ 0.19 | $ 0.09 | $ 0.09 | $ 0.48 | $ 0.22 | $ 0.20 | $ 0.05 | $ 0.17 | $ 0.56 | $ 0.96 | $ 0.52 |
Earnings per share — Diluted (in dollars per share) | $ 0.19 | $ 0.19 | $ 0.09 | $ 0.09 | $ 0.47 | $ 0.22 | $ 0.20 | $ 0.05 | $ 0.17 | $ 0.55 | $ 0.94 | $ 0.51 |
Stock options | ||||||||||||
Effect of dilutive securities: | ||||||||||||
Effect of dilutive securities, share-based compensation (in shares) | 585,270 | 840,820 | 945,140 | |||||||||
Unvested restricted stock | ||||||||||||
Effect of dilutive securities: | ||||||||||||
Effect of dilutive securities, share-based compensation (in shares) | 437,720 | 610,148 | 626,144 | |||||||||
Unvested performance share units | ||||||||||||
Effect of dilutive securities: | ||||||||||||
Effect of dilutive securities, share-based compensation (in shares) | 342,160 | 260,583 | 236,552 |
Business Segments - Financial I
Business Segments - Financial Information Relating to Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment reporting information | |||||||||||
Total net sales | $ 406.1 | $ 412.9 | $ 420.7 | $ 350.4 | $ 365.9 | $ 380.4 | $ 371.1 | $ 328 | $ 1,590.1 | $ 1,445.4 | $ 1,456.1 |
Amortization expense | (37) | (31.2) | (31.2) | ||||||||
Depreciation expense | (18) | (16.7) | (17.3) | ||||||||
Transaction costs | (7.1) | 0 | 0 | ||||||||
Other items | (5.6) | 0 | 0 | ||||||||
Separation expense | (0.1) | (1.6) | (6.5) | ||||||||
Restructuring expense | (6) | (10.8) | (2.5) | ||||||||
Gain (loss) from impairment or disposal of assets — net | 0.4 | 4 | (3.3) | ||||||||
Earnings from operations | 216.8 | 220.6 | 204.2 | ||||||||
Interest expense | (89) | (86.9) | (85.2) | ||||||||
Interest expense on notes with MTW — net | 0 | 0 | (0.1) | ||||||||
Loss on modification or extinguishment of debt | (9) | (1.7) | (2.7) | ||||||||
Other expense — net | (29.8) | (10.6) | (14) | ||||||||
Earnings before income taxes | 89 | 121.4 | 102.2 | ||||||||
Loss from diversion of funds | 3.7 | ||||||||||
Costs associated with restatement of financial statements | 1.3 | ||||||||||
Other professional fees | 0.6 | ||||||||||
Capital expenditures | 21.4 | 20.7 | 16 | ||||||||
Depreciation | 18 | 16.7 | 17.3 | ||||||||
Total assets | 2,075 | 1,840.4 | 2,075 | 1,840.4 | |||||||
Operating Segments | |||||||||||
Segment reporting information | |||||||||||
Total Segment Adjusted Operating EBITDA | 342.7 | 318.6 | 302.6 | ||||||||
Elimination of intersegment sales | |||||||||||
Segment reporting information | |||||||||||
Total net sales | (252.5) | (208.1) | (208.5) | ||||||||
Corporate and unallocated | |||||||||||
Segment reporting information | |||||||||||
Total Segment Adjusted Operating EBITDA | (52.5) | (41.7) | (37.6) | ||||||||
Depreciation expense | (0.5) | (0.9) | (0.7) | ||||||||
Capital expenditures | 2.9 | 0.5 | 0.9 | ||||||||
Depreciation | 0.5 | 0.9 | 0.7 | ||||||||
Total assets | 144.5 | 154 | 144.5 | 154 | |||||||
Americas | |||||||||||
Segment reporting information | |||||||||||
Total net sales | 1,090.9 | ||||||||||
Americas | Operating Segments | |||||||||||
Segment reporting information | |||||||||||
Total net sales | 1,228.4 | 1,166.8 | 1,186.1 | ||||||||
Total Segment Adjusted Operating EBITDA | 233.1 | 240.7 | 233.6 | ||||||||
Depreciation expense | (12.1) | (11.5) | (12.1) | ||||||||
Capital expenditures | 13.7 | 17.2 | 12.4 | ||||||||
Depreciation | 12.1 | 11.5 | $ 12.1 | ||||||||
Total assets | 1,437.3 | 1,445.6 | $ 1,437.3 | $ 1,445.6 | |||||||
Americas | Operating Segments | Geographic Concentration Risk | Earnings Before Interest, Taxes and Amortization | |||||||||||
Segment reporting information | |||||||||||
Adjusted Operating EBITDA % by segment | 19.00% | 20.60% | 19.70% | ||||||||
EMEA | |||||||||||
Segment reporting information | |||||||||||
Total net sales | $ 307.4 | ||||||||||
EMEA | Operating Segments | |||||||||||
Segment reporting information | |||||||||||
Total net sales | 385.1 | $ 296.5 | $ 287.6 | ||||||||
Total Segment Adjusted Operating EBITDA | 78.4 | 55.2 | 44.3 | ||||||||
Depreciation expense | (3) | (2.4) | (2.5) | ||||||||
Capital expenditures | 1.8 | 2 | 0.9 | ||||||||
Depreciation | 3 | 2.4 | $ 2.5 | ||||||||
Total assets | 324.2 | 112.1 | $ 324.2 | $ 112.1 | |||||||
EMEA | Operating Segments | Geographic Concentration Risk | Earnings Before Interest, Taxes and Amortization | |||||||||||
Segment reporting information | |||||||||||
Adjusted Operating EBITDA % by segment | 20.40% | 18.60% | 15.40% | ||||||||
APAC | |||||||||||
Segment reporting information | |||||||||||
Total net sales | $ 191.8 | ||||||||||
APAC | Operating Segments | |||||||||||
Segment reporting information | |||||||||||
Total net sales | 229.1 | $ 190.2 | $ 190.9 | ||||||||
Total Segment Adjusted Operating EBITDA | 31.2 | 22.7 | 24.7 | ||||||||
Depreciation expense | (2.4) | (1.9) | (2) | ||||||||
Capital expenditures | 3 | 1 | 1.8 | ||||||||
Depreciation | 2.4 | 1.9 | $ 2 | ||||||||
Total assets | $ 169 | $ 128.7 | $ 169 | $ 128.7 | |||||||
APAC | Operating Segments | Geographic Concentration Risk | Earnings Before Interest, Taxes and Amortization | |||||||||||
Segment reporting information | |||||||||||
Adjusted Operating EBITDA % by segment | 13.60% | 11.90% | 12.90% | ||||||||
Cost of sales | |||||||||||
Segment reporting information | |||||||||||
Transaction costs | $ (1.9) | ||||||||||
Selling, general and administrative expenses | |||||||||||
Segment reporting information | |||||||||||
Transaction costs | $ (5.2) |
Business Segments - Net Sales b
Business Segments - Net Sales by Product Class (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue from External Customer [Line Items] | |||||||||||
Net sales | $ 406.1 | $ 412.9 | $ 420.7 | $ 350.4 | $ 365.9 | $ 380.4 | $ 371.1 | $ 328 | $ 1,590.1 | $ 1,445.4 | $ 1,456.1 |
Commercial foodservice whole goods | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 1,329 | 1,173.3 | 1,191 | ||||||||
Aftermarket parts and support | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | $ 261.1 | $ 272.1 | $ 265.1 |
Business Segments - Schedule of
Business Segments - Schedule of Net Sales and Property Plant and Equipment by Geographic Area (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net sales from continuing operations and long-lived asset information by geographic area | |||||||||||
Net sales | $ 406.1 | $ 412.9 | $ 420.7 | $ 350.4 | $ 365.9 | $ 380.4 | $ 371.1 | $ 328 | $ 1,590.1 | $ 1,445.4 | $ 1,456.1 |
Property, plant and equipment — net | 119 | 112.2 | 119 | 112.2 | |||||||
United States | |||||||||||
Net sales from continuing operations and long-lived asset information by geographic area | |||||||||||
Net sales | 995 | 945.6 | 945.2 | ||||||||
Property, plant and equipment — net | 70.7 | 68.1 | 70.7 | 68.1 | |||||||
Other Americas | |||||||||||
Net sales from continuing operations and long-lived asset information by geographic area | |||||||||||
Net sales | 112 | 95 | 104.3 | ||||||||
Property, plant and equipment — net | 21 | 19.5 | 21 | 19.5 | |||||||
EMEA | |||||||||||
Net sales from continuing operations and long-lived asset information by geographic area | |||||||||||
Net sales | 300.7 | 239.2 | 242 | ||||||||
Property, plant and equipment — net | 12.1 | 11.6 | 12.1 | 11.6 | |||||||
APAC | |||||||||||
Net sales from continuing operations and long-lived asset information by geographic area | |||||||||||
Net sales | 182.4 | 165.6 | $ 164.6 | ||||||||
Property, plant and equipment — net | $ 15.2 | $ 13 | $ 15.2 | $ 13 |
Net Parent Company Investment_2
Net Parent Company Investment and Related Parties (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||
Interest expense on notes with MTW — net | $ 0 | $ 0 | $ 0.1 |
Dividend paid to MTW | $ 0 | $ 0 | 1,362 |
Parent | |||
Related Party Transaction [Line Items] | |||
General corporate expense | 5.2 | ||
Pension obligations assumed | 21.5 | ||
Post-retirement medical obligations | 6.8 | ||
Income taxes payable | $ 0.6 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) - Financial Data by Quarter (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Net sales | $ 406.1 | $ 412.9 | $ 420.7 | $ 350.4 | $ 365.9 | $ 380.4 | $ 371.1 | $ 328 | $ 1,590.1 | $ 1,445.4 | $ 1,456.1 | |
Gross profit | 140.6 | 153.1 | 149.3 | 126.2 | 132.8 | 143.9 | 137.2 | 123 | 569.2 | 536.9 | 533.8 | |
Net earnings | $ 27 | $ 26.8 | $ 12 | $ 12.4 | $ 66.9 | $ 30.7 | $ 28.4 | $ 6.9 | $ 24.4 | $ 78.2 | $ 132.9 | $ 71.5 |
Per share data | ||||||||||||
Earnings per share — Basic (in dollars per share) | $ 0.19 | $ 0.19 | $ 0.09 | $ 0.09 | $ 0.48 | $ 0.22 | $ 0.20 | $ 0.05 | $ 0.17 | $ 0.56 | $ 0.96 | $ 0.52 |
Earnings per share — Diluted (in dollars per share) | $ 0.19 | $ 0.19 | $ 0.09 | $ 0.09 | $ 0.47 | $ 0.22 | $ 0.20 | $ 0.05 | $ 0.17 | $ 0.55 | $ 0.94 | $ 0.51 |
Quarterly Financial Data (Una_4
Quarterly Financial Data (Unaudited) - Revisions to Unaudited Consolidated Statements of Operations by Quarter (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Income taxes | $ 5.2 | $ 0.4 | $ 5.6 | $ 10.8 | $ (11.5) | $ 30.7 | ||||||
Net earnings | $ 27 | $ 26.8 | $ 12 | $ 12.4 | $ 66.9 | $ 30.7 | $ 28.4 | $ 6.9 | $ 24.4 | $ 78.2 | $ 132.9 | $ 71.5 |
Per share data | ||||||||||||
Earnings per share — Basic (in dollars per share) | $ 0.19 | $ 0.19 | $ 0.09 | $ 0.09 | $ 0.48 | $ 0.22 | $ 0.20 | $ 0.05 | $ 0.17 | $ 0.56 | $ 0.96 | $ 0.52 |
Earnings per share — Diluted (in dollars per share) | $ 0.19 | $ 0.19 | $ 0.09 | $ 0.09 | $ 0.47 | $ 0.22 | $ 0.20 | $ 0.05 | $ 0.17 | $ 0.55 | $ 0.94 | $ 0.51 |
As Reported | ||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Income taxes | $ 5.1 | $ 0.3 | $ 5.4 | |||||||||
Net earnings | $ 12.1 | 12.5 | $ 24.6 | |||||||||
Per share data | ||||||||||||
Earnings per share — Basic (in dollars per share) | $ 0.09 | $ 0.18 | ||||||||||
Earnings per share — Diluted (in dollars per share) | $ 0.09 | $ 0.17 | ||||||||||
Adjustment | Computation of income tax expense | ||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Income taxes | $ 0.1 | 0.1 | $ 0.2 | |||||||||
Net earnings | $ (0.1) | $ (0.1) | $ (0.2) | |||||||||
Per share data | ||||||||||||
Earnings per share — Basic (in dollars per share) | $ 0 | $ (0.01) | ||||||||||
Earnings per share — Diluted (in dollars per share) | $ 0 | $ 0 |
Quarterly Financial Data (Una_5
Quarterly Financial Data (Unaudited) - Revisions to Unaudited Consolidated Statements of Comprehensive Income by Quarter (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Net earnings | $ 27 | $ 26.8 | $ 12 | $ 12.4 | $ 66.9 | $ 30.7 | $ 28.4 | $ 6.9 | $ 24.4 | $ 78.2 | $ 132.9 | $ 71.5 |
Foreign currency translation adjustments | (7.6) | 0 | (7.6) | (10.9) | 14.2 | (1.9) | ||||||
Total other comprehensive income (loss), net of tax | (8.3) | 2.5 | (5.8) | (9.6) | 11.4 | 1.1 | ||||||
Comprehensive income | 3.7 | 14.9 | 18.6 | $ 68.6 | $ 144.3 | $ 72.6 | ||||||
As Reported | ||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Net earnings | 12.1 | 12.5 | 24.6 | |||||||||
Foreign currency translation adjustments | (7.6) | 0.1 | (7.5) | |||||||||
Total other comprehensive income (loss), net of tax | (8.3) | 2.6 | (5.7) | |||||||||
Comprehensive income | 3.8 | 15.1 | 18.9 | |||||||||
Adjustment | Computation of income tax expense | ||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Net earnings | (0.1) | (0.1) | (0.2) | |||||||||
Foreign currency translation adjustments | 0 | (0.1) | (0.1) | |||||||||
Total other comprehensive income (loss), net of tax | 0 | (0.1) | (0.1) | |||||||||
Comprehensive income | $ (0.1) | $ (0.2) | $ (0.3) |
Quarterly Financial Data (Una_6
Quarterly Financial Data (Unaudited) - Revisions to Unaudited Consolidated Statements of Equity by Quarter (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning balance | $ 133.7 | $ 125.3 | $ 103.6 | $ (56.4) | $ 103.6 | $ 103.6 | $ (56.4) | $ 1,211.6 | ||||
Net earnings | $ 27 | 26.8 | 12 | 12.4 | $ 66.9 | $ 30.7 | $ 28.4 | 6.9 | 24.4 | 78.2 | 132.9 | 71.5 |
Other comprehensive income (loss) | (8.3) | 2.5 | (5.8) | (9.6) | 11.4 | 1.1 | ||||||
Ending balance | 186.4 | 133.7 | 125.3 | 103.6 | 133.7 | 186.4 | 103.6 | (56.4) | ||||
Additional Paid-In Capital (Deficit) | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning balance | (44.3) | (49) | (54.7) | (70.6) | (54.7) | (54.7) | (70.6) | 0 | ||||
Ending balance | (41.5) | (44.3) | (49) | (54.7) | (44.3) | (41.5) | (54.7) | (70.6) | ||||
Retained Earnings | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning balance | 214.6 | 202.6 | 189.1 | 56.2 | 189.1 | 189.1 | 56.2 | 0 | ||||
Net earnings | 78.2 | 132.9 | 56.2 | |||||||||
Ending balance | 268.4 | 214.6 | 202.6 | 189.1 | 214.6 | 268.4 | 189.1 | 56.2 | ||||
Accumulated Other Comprehensive (Loss) Income | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning balance | (37.8) | (29.5) | (32) | $ (43.4) | (32) | (32) | (43.4) | (44.5) | ||||
Other comprehensive income (loss) | (9.6) | 11.4 | 1.1 | |||||||||
Ending balance | $ (41.6) | (37.8) | (29.5) | (32) | (37.8) | (41.6) | (32) | $ (43.4) | ||||
As Reported | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning balance | 140.8 | 132.3 | 110.4 | 110.4 | 110.4 | |||||||
Net earnings | 12.1 | 12.5 | 24.6 | |||||||||
Other comprehensive income (loss) | (8.3) | 2.6 | (5.7) | |||||||||
Ending balance | 140.8 | 132.3 | 110.4 | 140.8 | 110.4 | |||||||
As Reported | Additional Paid-In Capital (Deficit) | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning balance | (52.9) | (57.6) | (63.3) | (63.3) | (63.3) | |||||||
Ending balance | (52.9) | (57.6) | (63.3) | (52.9) | (63.3) | |||||||
As Reported | Retained Earnings | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning balance | 230.2 | 218.1 | 204.5 | 204.5 | 204.5 | |||||||
Ending balance | 230.2 | 218.1 | 204.5 | 230.2 | 204.5 | |||||||
As Reported | Accumulated Other Comprehensive (Loss) Income | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning balance | (37.7) | (29.4) | ||||||||||
Ending balance | (37.7) | (29.4) | (37.7) | |||||||||
Adjustment | Computation of income tax expense | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning balance | (7.1) | (7) | (6.8) | (6.8) | (6.8) | |||||||
Net earnings | (0.1) | (0.1) | (0.2) | |||||||||
Other comprehensive income (loss) | 0 | (0.1) | (0.1) | |||||||||
Ending balance | (7.1) | (7) | (6.8) | (7.1) | (6.8) | |||||||
Adjustment | Computation of income tax expense | Additional Paid-In Capital (Deficit) | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning balance | 8.6 | 8.6 | 8.6 | 8.6 | 8.6 | |||||||
Ending balance | 8.6 | 8.6 | 8.6 | 8.6 | 8.6 | |||||||
Adjustment | Computation of income tax expense | Retained Earnings | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning balance | (15.6) | (15.5) | (15.4) | (15.4) | $ (15.4) | |||||||
Ending balance | (15.6) | (15.5) | $ (15.4) | (15.6) | $ (15.4) | |||||||
Adjustment | Computation of income tax expense | Accumulated Other Comprehensive (Loss) Income | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning balance | $ (0.1) | (0.1) | ||||||||||
Ending balance | $ (0.1) | $ (0.1) | $ (0.1) |
Quarterly Financial Data (Una_7
Quarterly Financial Data (Unaudited) - Revisions to Unaudited Statements of Cash Flows by Quarter (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Net earnings | $ 27 | $ 26.8 | $ 12 | $ 12.4 | $ 66.9 | $ 30.7 | $ 28.4 | $ 6.9 | $ 24.4 | $ 78.2 | $ 132.9 | $ 71.5 | |
Accounts receivable | (130.9) | (292.1) | $ (439.6) | (590.4) | (541.2) | (502.8) | |||||||
Other current and long-term liabilities | (39.1) | (30.9) | (21.4) | (24) | (10.6) | 27.6 | |||||||
Net cash provided by (used in) operating activities | (158.7) | (271) | (380) | (448.5) | (431.3) | (372) | |||||||
Cash receipts on beneficial interest in sold receivables | 127.9 | 264.8 | 420.2 | 576.4 | 552.1 | 494.3 | |||||||
Purchase of short-term investment | (35) | (35) | (35) | (35) | 0 | (18.7) | |||||||
Proceeds from maturity of short-term investment | 20.7 | 20.7 | 20.7 | 20.7 | 0 | 0 | |||||||
Other | 0.3 | 0.6 | 0.9 | 1.2 | 0.9 | 0 | |||||||
Net cash (used in) provided by investing activities | 110.2 | 17.5 | 164.4 | 313.5 | 543.4 | 461.2 | |||||||
Effect of exchange rate changes on cash | 3.6 | (0.9) | (0.7) | (2.9) | 6.9 | 0.9 | |||||||
Net increase (decrease) in cash and cash equivalents and restricted cash | 10.3 | (37.8) | (47.1) | (35.6) | 67.3 | 8.9 | |||||||
Balance at beginning of period | 61.7 | 71 | 119.1 | 108.8 | 41.5 | 108.8 | 108.8 | 108.8 | 41.5 | 32.6 | |||
Balance at end of period | 73.2 | 61.7 | 71 | 119.1 | 108.8 | 71 | 61.7 | 73.2 | 108.8 | 41.5 | |||
Supplemental disclosures of non-cash activities: | |||||||||||||
Non-cash investing activity: Beneficial interest obtained in exchange for securitized receivables | 169.2 | 365.1 | 555.8 | 744.7 | 723.5 | 636.9 | |||||||
As Reported, after Effect of Accounting Adoption | |||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Net earnings | 12.5 | 24.6 | |||||||||||
Accounts receivable | (134.8) | (313) | (483) | ||||||||||
Other current and long-term liabilities | (30.1) | (27.2) | (19.3) | ||||||||||
Net cash provided by (used in) operating activities | (153.5) | (288) | (421.3) | ||||||||||
Cash receipts on beneficial interest in sold receivables | 131.8 | 285.7 | 463.6 | ||||||||||
Purchase of short-term investment | 0 | 0 | 0 | ||||||||||
Proceeds from maturity of short-term investment | 0 | 0 | 0 | ||||||||||
Other | 0 | 0 | 0 | ||||||||||
Net cash (used in) provided by investing activities | 128.1 | 52.1 | 221.2 | ||||||||||
Effect of exchange rate changes on cash | (4.4) | (5.2) | (4.1) | ||||||||||
Net increase (decrease) in cash and cash equivalents and restricted cash | 25.4 | (24.5) | (35) | ||||||||||
Balance at beginning of period | 93.7 | 104.2 | 154.1 | 128.7 | 128.7 | 128.7 | 128.7 | ||||||
Balance at end of period | 93.7 | 104.2 | 154.1 | 128.7 | 104.2 | 93.7 | 128.7 | ||||||
Supplemental disclosures of non-cash activities: | |||||||||||||
Non-cash investing activity: Beneficial interest obtained in exchange for securitized receivables | 169.6 | 350.6 | 522.3 | ||||||||||
Adjustment | Classification and calculation errors, statements of cash flows | |||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Net earnings | (0.1) | (0.2) | |||||||||||
Accounts receivable | 3.9 | 20.9 | 43.4 | 0 | 0 | ||||||||
Other current and long-term liabilities | (9) | (3.7) | (2.1) | (17.1) | (1.8) | ||||||||
Net cash provided by (used in) operating activities | (5.2) | 17 | 41.3 | (17.1) | (1.8) | ||||||||
Cash receipts on beneficial interest in sold receivables | (3.9) | (20.9) | (43.4) | 0 | 0 | ||||||||
Purchase of short-term investment | (35) | (35) | (35) | (18.7) | |||||||||
Proceeds from maturity of short-term investment | 20.7 | 20.7 | 20.7 | ||||||||||
Other | 0.3 | 0.6 | 0.9 | 0.9 | |||||||||
Net cash (used in) provided by investing activities | (17.9) | (34.6) | (56.8) | 0.9 | (18.7) | ||||||||
Effect of exchange rate changes on cash | 8 | 4.3 | 3.4 | 15 | 1.8 | ||||||||
Net increase (decrease) in cash and cash equivalents and restricted cash | (15.1) | (13.3) | (12.1) | (1.2) | (18.7) | ||||||||
Balance at beginning of period | $ (32) | (33.2) | (35) | (19.9) | $ (18.7) | (19.9) | (19.9) | $ (19.9) | (18.7) | 0 | |||
Balance at end of period | $ (32) | $ (33.2) | (35) | $ (19.9) | (33.2) | (32) | $ (19.9) | $ (18.7) | |||||
Supplemental disclosures of non-cash activities: | |||||||||||||
Non-cash investing activity: Beneficial interest obtained in exchange for securitized receivables | $ (0.4) | $ 14.5 | $ 33.5 |
Revision of Previously Issued_3
Revision of Previously Issued Consolidated Financial Statements - Revisions to Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Cash and cash equivalents | $ 70.4 | $ 108.5 | |
Short-term investment | $ 32 | 19.9 | |
As Reported | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Cash and cash equivalents | 128.4 | ||
Short-term investment | 0 | ||
Adjustment | Classification error of short-time deposit | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Cash and cash equivalents | (19.9) | $ (18.7) | |
Short-term investment | $ 19.9 | $ 18.7 |
Revision of Previously Issued_4
Revision of Previously Issued Consolidated Financial Statements - Revisions to Statements of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Jun. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Accounts receivable | $ (130.9) | $ (292.1) | $ (439.6) | $ (590.4) | $ (541.2) | $ (502.8) |
Other current and long-term liabilities | (39.1) | (30.9) | (21.4) | (24) | (10.6) | 27.6 |
Net cash provided by (used in) operating activities | (158.7) | (271) | (380) | (448.5) | (431.3) | (372) |
Cash receipts on beneficial interest in sold receivables | 127.9 | 264.8 | 420.2 | 576.4 | 552.1 | 494.3 |
Purchase of short-term investment | (35) | (35) | (35) | (35) | 0 | (18.7) |
Changes in restricted cash | 0 | 0 | ||||
Other | 0.3 | 0.6 | 0.9 | 1.2 | 0.9 | 0 |
Net cash (used in) provided by investing activities | 110.2 | 17.5 | 164.4 | 313.5 | 543.4 | 461.2 |
Effect of exchange rate changes on cash | 3.6 | (0.9) | (0.7) | (2.9) | 6.9 | 0.9 |
Net increase (decrease) in cash and cash equivalents and restricted cash | 10.3 | (37.8) | (47.1) | (35.6) | 67.3 | 8.9 |
Balance at beginning of period | 108.8 | 108.8 | 108.8 | 108.8 | 41.5 | 32.6 |
Balance at end of period | 119.1 | 71 | 61.7 | 73.2 | 108.8 | 41.5 |
Gain (loss) from impairment or disposal of assets — net | 0.4 | 4 | (3.3) | |||
Effect of Accounting Adoption - ASUs 2016-15 and 2016-18 | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Accounts receivable | (552) | (494.5) | ||||
Other current and long-term liabilities | 0 | 0 | ||||
Net cash provided by (used in) operating activities | (552) | (494.5) | ||||
Cash receipts on beneficial interest in sold receivables | 552.1 | 494.3 | ||||
Purchase of short-term investment | 0 | |||||
Changes in restricted cash | (6.2) | 6 | ||||
Other | 0 | |||||
Net cash (used in) provided by investing activities | 545.9 | 500.3 | ||||
Effect of exchange rate changes on cash | 0 | 0 | ||||
Net increase (decrease) in cash and cash equivalents and restricted cash | (6.1) | 5.8 | ||||
Balance at beginning of period | 0.3 | 0.3 | 0.3 | 0.3 | 6.4 | 0.6 |
Balance at end of period | 0.3 | 6.4 | ||||
As Reported | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Accounts receivable | 10.8 | (8.3) | ||||
Other current and long-term liabilities | 6.5 | 29.4 | ||||
Net cash provided by (used in) operating activities | 137.8 | 124.3 | ||||
Cash receipts on beneficial interest in sold receivables | 0 | 0 | ||||
Purchase of short-term investment | 0 | |||||
Changes in restricted cash | 6.2 | (6) | ||||
Other | 0 | |||||
Net cash (used in) provided by investing activities | (3.4) | (20.4) | ||||
Effect of exchange rate changes on cash | (8.1) | (0.9) | ||||
Net increase (decrease) in cash and cash equivalents and restricted cash | 74.6 | 21.8 | ||||
Balance at beginning of period | 128.4 | 128.4 | 128.4 | 128.4 | 53.8 | 32 |
Balance at end of period | 128.4 | 53.8 | ||||
Adjustment | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Gain (loss) from impairment or disposal of assets — net | (0.2) | |||||
Adjustment | Classification and calculation errors, statements of cash flows | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Accounts receivable | 3.9 | 20.9 | 43.4 | 0 | 0 | |
Other current and long-term liabilities | (9) | (3.7) | (2.1) | (17.1) | (1.8) | |
Net cash provided by (used in) operating activities | (5.2) | 17 | 41.3 | (17.1) | (1.8) | |
Cash receipts on beneficial interest in sold receivables | (3.9) | (20.9) | (43.4) | 0 | 0 | |
Purchase of short-term investment | (35) | (35) | (35) | (18.7) | ||
Changes in restricted cash | 0 | 0 | ||||
Other | 0.3 | 0.6 | 0.9 | 0.9 | ||
Net cash (used in) provided by investing activities | (17.9) | (34.6) | (56.8) | 0.9 | (18.7) | |
Effect of exchange rate changes on cash | 8 | 4.3 | 3.4 | 15 | 1.8 | |
Net increase (decrease) in cash and cash equivalents and restricted cash | (15.1) | (13.3) | (12.1) | (1.2) | (18.7) | |
Balance at beginning of period | (19.9) | (19.9) | (19.9) | $ (19.9) | (18.7) | 0 |
Balance at end of period | $ (35) | $ (33.2) | $ (32) | $ (19.9) | $ (18.7) |
Subsidiary Guarantors of Seni_3
Subsidiary Guarantors of Senior Notes due 2024 - Consolidating Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net sales | $ 406.1 | $ 412.9 | $ 420.7 | $ 350.4 | $ 365.9 | $ 380.4 | $ 371.1 | $ 328 | $ 1,590.1 | $ 1,445.4 | $ 1,456.1 | |
Cost of sales | 1,020.9 | 908.5 | 922.3 | |||||||||
Gross profit | 140.6 | 153.1 | 149.3 | 126.2 | 132.8 | 143.9 | 137.2 | 123 | 569.2 | 536.9 | 533.8 | |
Selling, general and administrative expenses | 309.7 | 276.7 | 286.1 | |||||||||
Amortization expense | 37 | 31.2 | 31.2 | |||||||||
Separation expense | 0.1 | 1.6 | 6.5 | |||||||||
Restructuring expense | 6 | 10.8 | 2.5 | |||||||||
(Gain) loss from impairment or disposal of assets — net | (0.4) | (4) | 3.3 | |||||||||
Earnings from operations | 216.8 | 220.6 | 204.2 | |||||||||
Interest expense | 89 | 86.9 | 85.2 | |||||||||
Interest expense on notes with MTW — net | 0 | 0 | 0.1 | |||||||||
Loss on modification or extinguishment of debt | 9 | 1.7 | 2.7 | |||||||||
Other expense — net | 29.8 | 10.6 | 14 | |||||||||
Equity in earnings (loss) of subsidiaries | 0 | 0 | 0 | |||||||||
Earnings before income taxes | 89 | 121.4 | 102.2 | |||||||||
Income taxes | 5.2 | 0.4 | $ 5.6 | 10.8 | (11.5) | 30.7 | ||||||
Net earnings | $ 27 | $ 26.8 | 12 | 12.4 | $ 66.9 | $ 30.7 | $ 28.4 | $ 6.9 | 24.4 | 78.2 | 132.9 | 71.5 |
Total other comprehensive income (loss), net of tax | (8.3) | 2.5 | (5.8) | (9.6) | 11.4 | 1.1 | ||||||
Comprehensive income | $ 3.7 | $ 14.9 | $ 18.6 | 68.6 | 144.3 | 72.6 | ||||||
Consolidating Adjustments | ||||||||||||
Net sales | (458.5) | (369.9) | (395.6) | |||||||||
Cost of sales | (458.5) | (369.9) | (395.6) | |||||||||
Gross profit | 0 | 0 | 0 | |||||||||
Selling, general and administrative expenses | 0 | 0 | 0 | |||||||||
Amortization expense | 0 | 0 | 0 | |||||||||
Separation expense | 0 | 0 | 0 | |||||||||
Restructuring expense | 0 | 0 | 0 | |||||||||
(Gain) loss from impairment or disposal of assets — net | 0 | 0 | 0 | |||||||||
Earnings from operations | 0 | 0 | 0 | |||||||||
Interest expense | 0 | 0 | 0 | |||||||||
Interest expense on notes with MTW — net | 0 | |||||||||||
Loss on modification or extinguishment of debt | 0 | 0 | 0 | |||||||||
Other expense — net | 0 | 0 | 0 | |||||||||
Equity in earnings (loss) of subsidiaries | (263) | (318.7) | (309.5) | |||||||||
Earnings before income taxes | (263) | (318.7) | (309.5) | |||||||||
Income taxes | 0 | 0 | ||||||||||
Net earnings | (263) | (318.7) | (309.5) | |||||||||
Total other comprehensive income (loss), net of tax | 42.8 | (38.1) | (10.3) | |||||||||
Comprehensive income | (220.2) | (356.8) | (319.8) | |||||||||
Parent | Reportable Legal Entities | ||||||||||||
Net sales | 0 | 0 | 0 | |||||||||
Cost of sales | 21.2 | 3.8 | 3.4 | |||||||||
Gross profit | (21.2) | (3.8) | (3.4) | |||||||||
Selling, general and administrative expenses | 37.2 | 35.9 | 33.2 | |||||||||
Amortization expense | 0 | 0 | 0 | |||||||||
Separation expense | 0.1 | 1.5 | 6.3 | |||||||||
Restructuring expense | 1.6 | 5 | 0 | |||||||||
(Gain) loss from impairment or disposal of assets — net | 0 | 0 | 0 | |||||||||
Earnings from operations | (60.1) | (46.2) | (42.9) | |||||||||
Interest expense | 80.6 | 82.8 | 82.2 | |||||||||
Interest expense on notes with MTW — net | 0 | |||||||||||
Loss on modification or extinguishment of debt | 9 | 1.7 | 2.7 | |||||||||
Other expense — net | (6.8) | (10.2) | (3.4) | |||||||||
Equity in earnings (loss) of subsidiaries | 191.1 | 232.6 | 194.1 | |||||||||
Earnings before income taxes | 48.2 | 112.1 | 69.7 | |||||||||
Income taxes | (30) | (20.8) | (1.8) | |||||||||
Net earnings | 78.2 | 132.9 | 71.5 | |||||||||
Total other comprehensive income (loss), net of tax | (9.6) | 11.4 | 1.1 | |||||||||
Comprehensive income | 68.6 | 144.3 | 72.6 | |||||||||
Guarantor Subsidiaries | Reportable Legal Entities | ||||||||||||
Net sales | 1,110.8 | 1,042.3 | 1,069.5 | |||||||||
Cost of sales | 836.8 | 750.6 | 774.4 | |||||||||
Gross profit | 274 | 291.7 | 295.1 | |||||||||
Selling, general and administrative expenses | 142.4 | 143.7 | 153.5 | |||||||||
Amortization expense | 28.5 | 28.4 | 28.4 | |||||||||
Separation expense | 0 | 0.1 | 0 | |||||||||
Restructuring expense | 1.2 | 3.5 | 1.6 | |||||||||
(Gain) loss from impairment or disposal of assets — net | (0.5) | (0.4) | 2.9 | |||||||||
Earnings from operations | 102.4 | 116.4 | 108.7 | |||||||||
Interest expense | 1 | 1.1 | 1.2 | |||||||||
Interest expense on notes with MTW — net | 0 | |||||||||||
Loss on modification or extinguishment of debt | 0 | 0 | 0 | |||||||||
Other expense — net | (29.6) | (23.7) | 16.4 | |||||||||
Equity in earnings (loss) of subsidiaries | 71.9 | 86.1 | 115.4 | |||||||||
Earnings before income taxes | 202.9 | 225.1 | 206.5 | |||||||||
Income taxes | 11.8 | (7.5) | 12.4 | |||||||||
Net earnings | 191.1 | 232.6 | 194.1 | |||||||||
Total other comprehensive income (loss), net of tax | (19.5) | 20.3 | 3 | |||||||||
Comprehensive income | 171.6 | 252.9 | 197.1 | |||||||||
Non- Guarantor Subsidiaries | Reportable Legal Entities | ||||||||||||
Net sales | 937.8 | 773 | 782.2 | |||||||||
Cost of sales | 621.4 | 524 | 540.1 | |||||||||
Gross profit | 316.4 | 249 | 242.1 | |||||||||
Selling, general and administrative expenses | 130.1 | 97.1 | 99.4 | |||||||||
Amortization expense | 8.5 | 2.8 | 2.8 | |||||||||
Separation expense | 0 | 0 | 0.2 | |||||||||
Restructuring expense | 3.2 | 2.3 | 0.9 | |||||||||
(Gain) loss from impairment or disposal of assets — net | 0.1 | (3.6) | 0.4 | |||||||||
Earnings from operations | 174.5 | 150.4 | 138.4 | |||||||||
Interest expense | 7.4 | 3 | 1.8 | |||||||||
Interest expense on notes with MTW — net | 0.1 | |||||||||||
Loss on modification or extinguishment of debt | 0 | 0 | 0 | |||||||||
Other expense — net | 66.2 | 44.5 | 1 | |||||||||
Equity in earnings (loss) of subsidiaries | 0 | 0 | 0 | |||||||||
Earnings before income taxes | 100.9 | 102.9 | 135.5 | |||||||||
Income taxes | 29 | 16.8 | 20.1 | |||||||||
Net earnings | 71.9 | 86.1 | 115.4 | |||||||||
Total other comprehensive income (loss), net of tax | (23.3) | 17.8 | 7.3 | |||||||||
Comprehensive income | $ 48.6 | $ 103.9 | $ 122.7 |
Subsidiary Guarantors of Seni_4
Subsidiary Guarantors of Senior Notes due 2024 - Consolidating Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Current Assets: | |||||||
Cash and cash equivalents | $ 70.4 | $ 108.5 | |||||
Restricted cash | 2.8 | 0.3 | |||||
Short-term investment | 32 | 19.9 | |||||
Accounts receivable — net | 112.5 | 83.7 | |||||
Inventories — net | 190.6 | $ 153.4 | 152.3 | ||||
Prepaids and other current assets | 32.2 | 19 | |||||
Total current assets | 440.5 | 383.7 | |||||
Property, plant and equipment — net | 119 | 112.2 | |||||
Goodwill | 935.6 | 846.1 | $ 845.3 | ||||
Other intangible assets — net | 546.7 | 461.4 | |||||
Intercompany long-term note receivable | 0 | 0 | |||||
Due from affiliates | 0 | 0 | |||||
Investment in subsidiaries | 0 | 0 | |||||
Other non-current assets | 33.2 | 37 | |||||
Total assets | 2,075 | 1,840.4 | |||||
Current liabilities: | |||||||
Accounts payable | 151 | 103.6 | |||||
Accrued expenses and other liabilities | 183.7 | 169.5 | |||||
Short-term borrowings | 15 | 0 | |||||
Current portion of capital leases | 1.1 | 0.7 | |||||
Product warranties | 27.9 | 24.1 | |||||
Total current liabilities | 378.7 | 297.9 | |||||
Long-term debt and capital leases | 1,321.8 | 1,232.2 | |||||
Deferred income taxes | 104.3 | 91.3 | |||||
Pension and postretirement health obligations | 39.2 | 48.3 | |||||
Intercompany long-term note payable | 0 | 0 | |||||
Due to affiliates | 0 | 0 | |||||
Investment in subsidiaries | 0 | 0 | |||||
Other long-term liabilities | 44.6 | 67.1 | |||||
Total non-current liabilities | 1,509.9 | 1,438.9 | |||||
Total equity (deficit): | |||||||
Total equity (deficit) | 186.4 | $ 133.7 | $ 125.3 | 103.6 | $ (56.4) | $ 1,211.6 | |
Total liabilities and equity | 2,075 | 1,840.4 | |||||
Consolidating Adjustments | |||||||
Current Assets: | |||||||
Cash and cash equivalents | 0 | (0.8) | |||||
Restricted cash | 0 | 0 | |||||
Short-term investment | 0 | 0 | |||||
Accounts receivable — net | (1.8) | (1) | |||||
Inventories — net | 0 | 0 | |||||
Prepaids and other current assets | 0 | 0 | |||||
Total current assets | (1.8) | (1.8) | |||||
Property, plant and equipment — net | 0 | 0 | |||||
Goodwill | 0 | 0 | |||||
Other intangible assets — net | 0 | 0 | |||||
Intercompany long-term note receivable | (40) | (20) | |||||
Due from affiliates | (3,395) | (3,252.8) | |||||
Investment in subsidiaries | (4,200.5) | (4,009.4) | |||||
Other non-current assets | (11) | (7.7) | |||||
Total assets | (7,648.3) | (7,291.7) | |||||
Current liabilities: | |||||||
Accounts payable | (1.9) | (1.8) | |||||
Accrued expenses and other liabilities | 0 | 0 | |||||
Short-term borrowings | 0 | ||||||
Current portion of capital leases | 0 | 0 | |||||
Product warranties | 0 | 0 | |||||
Total current liabilities | (1.9) | (1.8) | |||||
Long-term debt and capital leases | 0 | 0 | |||||
Deferred income taxes | 0 | 0 | |||||
Pension and postretirement health obligations | (10.9) | (7.7) | |||||
Intercompany long-term note payable | (40) | (20) | |||||
Due to affiliates | (3,395) | (3,252.8) | |||||
Investment in subsidiaries | (368.3) | (440.2) | |||||
Other long-term liabilities | 0 | 0 | |||||
Total non-current liabilities | (3,814.2) | (3,720.7) | |||||
Total equity (deficit): | |||||||
Total equity (deficit) | (3,832.2) | (3,569.2) | |||||
Total liabilities and equity | (7,648.3) | (7,291.7) | |||||
Parent | Reportable Legal Entities | |||||||
Current Assets: | |||||||
Cash and cash equivalents | 0.2 | 8.8 | |||||
Restricted cash | 0 | 0 | |||||
Short-term investment | 0 | 0 | |||||
Accounts receivable — net | 0 | 0 | |||||
Inventories — net | 0 | 0 | |||||
Prepaids and other current assets | 17 | 5.3 | |||||
Total current assets | 17.2 | 14.1 | |||||
Property, plant and equipment — net | 3 | 0.5 | |||||
Goodwill | 0 | 0 | |||||
Other intangible assets — net | 0 | 0 | |||||
Intercompany long-term note receivable | 20 | 0 | |||||
Due from affiliates | 0 | 0 | |||||
Investment in subsidiaries | 4,200.5 | 4,009.4 | |||||
Other non-current assets | 12.1 | 10.8 | |||||
Total assets | 4,252.8 | 4,034.8 | |||||
Current liabilities: | |||||||
Accounts payable | 0.2 | 0.2 | |||||
Accrued expenses and other liabilities | 33.9 | 20.7 | |||||
Short-term borrowings | 0 | ||||||
Current portion of capital leases | 0 | 0 | |||||
Product warranties | 0 | 0 | |||||
Total current liabilities | 34.1 | 20.9 | |||||
Long-term debt and capital leases | 1,246.6 | 1,230.2 | |||||
Deferred income taxes | 60.5 | 73.7 | |||||
Pension and postretirement health obligations | 45.5 | 51.3 | |||||
Intercompany long-term note payable | 15.7 | 15.7 | |||||
Due to affiliates | 2,649.5 | 2,501.4 | |||||
Investment in subsidiaries | 0 | 0 | |||||
Other long-term liabilities | 14.5 | 38 | |||||
Total non-current liabilities | 4,032.3 | 3,910.3 | |||||
Total equity (deficit): | |||||||
Total equity (deficit) | 186.4 | 103.6 | |||||
Total liabilities and equity | 4,252.8 | 4,034.8 | |||||
Guarantor Subsidiaries | Reportable Legal Entities | |||||||
Current Assets: | |||||||
Cash and cash equivalents | 0.5 | 0 | |||||
Restricted cash | 0 | 0 | |||||
Short-term investment | 0 | 0 | |||||
Accounts receivable — net | 0 | 0 | |||||
Inventories — net | 99.8 | 69.8 | |||||
Prepaids and other current assets | 3.5 | 5.9 | |||||
Total current assets | 103.8 | 75.7 | |||||
Property, plant and equipment — net | 71.1 | 68.7 | |||||
Goodwill | 832.4 | 832.4 | |||||
Other intangible assets — net | 370.8 | 396.3 | |||||
Intercompany long-term note receivable | 10.1 | 20 | |||||
Due from affiliates | 3,395 | 3,252.8 | |||||
Investment in subsidiaries | 0 | 0 | |||||
Other non-current assets | 4 | 5.2 | |||||
Total assets | 4,787.2 | 4,651.1 | |||||
Current liabilities: | |||||||
Accounts payable | 81.5 | 58.2 | |||||
Accrued expenses and other liabilities | 88.8 | 95.9 | |||||
Short-term borrowings | 0 | ||||||
Current portion of capital leases | 0.9 | 0.5 | |||||
Product warranties | 18.2 | 16.2 | |||||
Total current liabilities | 189.4 | 170.8 | |||||
Long-term debt and capital leases | 1.2 | 1.2 | |||||
Deferred income taxes | 0 | 0 | |||||
Pension and postretirement health obligations | 4.6 | 4.7 | |||||
Intercompany long-term note payable | 0 | 0 | |||||
Due to affiliates | 0 | 0 | |||||
Investment in subsidiaries | 368.3 | 440.2 | |||||
Other long-term liabilities | 23.2 | 24.8 | |||||
Total non-current liabilities | 397.3 | 470.9 | |||||
Total equity (deficit): | |||||||
Total equity (deficit) | 4,200.5 | 4,009.4 | |||||
Total liabilities and equity | 4,787.2 | 4,651.1 | |||||
Non- Guarantor Subsidiaries | Reportable Legal Entities | |||||||
Current Assets: | |||||||
Cash and cash equivalents | 69.7 | 100.5 | |||||
Restricted cash | 2.8 | 0.3 | |||||
Short-term investment | 32 | 19.9 | |||||
Accounts receivable — net | 114.3 | 84.7 | |||||
Inventories — net | 90.8 | 82.5 | |||||
Prepaids and other current assets | 11.7 | 7.8 | |||||
Total current assets | 321.3 | 295.7 | |||||
Property, plant and equipment — net | 44.9 | 43 | |||||
Goodwill | 103.2 | 13.7 | |||||
Other intangible assets — net | 175.9 | 65.1 | |||||
Intercompany long-term note receivable | 9.9 | 0 | |||||
Due from affiliates | 0 | 0 | |||||
Investment in subsidiaries | 0 | 0 | |||||
Other non-current assets | 28.1 | 28.7 | |||||
Total assets | 683.3 | 446.2 | |||||
Current liabilities: | |||||||
Accounts payable | 71.2 | 47 | |||||
Accrued expenses and other liabilities | 61 | 52.9 | |||||
Short-term borrowings | 15 | ||||||
Current portion of capital leases | 0.2 | 0.2 | |||||
Product warranties | 9.7 | 7.9 | |||||
Total current liabilities | 157.1 | 108 | |||||
Long-term debt and capital leases | 74 | 0.8 | |||||
Deferred income taxes | 43.8 | 17.6 | |||||
Pension and postretirement health obligations | 0 | 0 | |||||
Intercompany long-term note payable | 24.3 | 4.3 | |||||
Due to affiliates | 745.5 | 751.4 | |||||
Investment in subsidiaries | 0 | 0 | |||||
Other long-term liabilities | 6.9 | 4.3 | |||||
Total non-current liabilities | 894.5 | 778.4 | |||||
Total equity (deficit): | |||||||
Total equity (deficit) | (368.3) | (440.2) | |||||
Total liabilities and equity | $ 683.3 | $ 446.2 |
Subsidiary Guarantors of Seni_5
Subsidiary Guarantors of Senior Notes due 2024 - Consolidating Statement of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Jun. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed consolidating statement of cash flows | ||||||
Net cash provided by (used in) operating activities | $ (158.7) | $ (271) | $ (380) | $ (448.5) | $ (431.3) | $ (372) |
Cash flows from investing activities | ||||||
Cash receipts on beneficial interest in sold receivables | 127.9 | 264.8 | 420.2 | 576.4 | 552.1 | 494.3 |
Capital expenditures | (21.4) | (20.7) | (16) | |||
Proceeds from sale of property, plant and equipment | 0 | 12.3 | 0.5 | |||
Acquisition of intangible assets | (2.8) | (1.2) | 0 | |||
Business acquisition, net of cash acquired | (215.6) | 0 | 0 | |||
Proceeds from dispositions | 0 | 0 | 1.1 | |||
Purchase of short-term investment | (35) | (35) | (35) | (35) | 0 | (18.7) |
Proceeds from maturity of short-term investment | 20.7 | 20.7 | 20.7 | 20.7 | 0 | 0 |
Settlement of foreign exchange contract | (10) | 0 | 0 | |||
Other | 0.3 | 0.6 | 0.9 | 1.2 | 0.9 | 0 |
Intercompany investment | 0 | 0 | 0 | |||
Net cash provided by investing activities | 110.2 | 17.5 | 164.4 | 313.5 | 543.4 | 461.2 |
Cash flows from financing activities | ||||||
Proceeds from long-term debt | 475.5 | 155 | 1,501.1 | |||
Repayments on long-term debt and capital leases | (383.2) | (204.1) | (186.8) | |||
Proceeds from short-term borrowings | 30 | 4 | 0 | |||
Repayment of short-term borrowings | (15) | (4) | 0 | |||
Debt issuance costs | (6.8) | (2) | (41.3) | |||
Payment of deferred consideration | (1.4) | 0 | 0 | |||
Dividend paid to MTW | 0 | 0 | (1,362) | |||
Net transactions with MTW | 0 | 0 | (4.6) | |||
Exercises of stock options | 6.2 | 4.8 | 16.2 | |||
Payments on tax withholdings for equity awards | (3) | (5.4) | (3.8) | |||
Intercompany financing | 0 | 0 | 0 | |||
Net cash provided by (used in) financing activities | 102.3 | (51.7) | (81.2) | |||
Effect of exchange rate changes on cash | 3.6 | (0.9) | (0.7) | (2.9) | 6.9 | 0.9 |
Net (decrease) increase in cash and cash equivalents and restricted cash | 10.3 | (37.8) | (47.1) | (35.6) | 67.3 | 8.9 |
Balance at beginning of period | 108.8 | 108.8 | 108.8 | 108.8 | 41.5 | 32.6 |
Balance at end of period | 119.1 | 71 | 61.7 | 73.2 | 108.8 | 41.5 |
Consolidating Adjustments | ||||||
Condensed consolidating statement of cash flows | ||||||
Net cash provided by (used in) operating activities | 0.8 | (0.8) | 0 | |||
Cash flows from investing activities | ||||||
Cash receipts on beneficial interest in sold receivables | 0 | 0 | 0 | |||
Capital expenditures | 0 | 0 | 0 | |||
Proceeds from sale of property, plant and equipment | 0 | 0 | ||||
Acquisition of intangible assets | 0 | 0 | ||||
Business acquisition, net of cash acquired | 0 | |||||
Proceeds from dispositions | 0 | |||||
Purchase of short-term investment | 0 | 0 | ||||
Proceeds from maturity of short-term investment | 0 | |||||
Settlement of foreign exchange contract | 0 | |||||
Other | 0 | 0 | ||||
Intercompany investment | 128.1 | 156.6 | 183.8 | |||
Net cash provided by investing activities | 128.1 | 156.6 | 183.8 | |||
Cash flows from financing activities | ||||||
Proceeds from long-term debt | 0 | 0 | 0 | |||
Repayments on long-term debt and capital leases | 0 | 0 | 0 | |||
Proceeds from short-term borrowings | 0 | 0 | ||||
Repayment of short-term borrowings | 0 | 0 | ||||
Debt issuance costs | 0 | 0 | 0 | |||
Payment of deferred consideration | 0 | |||||
Dividend paid to MTW | 0 | |||||
Net transactions with MTW | 0 | |||||
Exercises of stock options | 0 | 0 | 0 | |||
Payments on tax withholdings for equity awards | 0 | 0 | 0 | |||
Intercompany financing | (128.1) | (156.6) | (183.8) | |||
Net cash provided by (used in) financing activities | (128.1) | (156.6) | (183.8) | |||
Effect of exchange rate changes on cash | 0 | 0 | 0 | |||
Net (decrease) increase in cash and cash equivalents and restricted cash | 0.8 | (0.8) | 0 | |||
Balance at beginning of period | (0.8) | (0.8) | (0.8) | (0.8) | 0 | 0 |
Balance at end of period | 0 | (0.8) | 0 | |||
Parent | Reportable Legal Entities | ||||||
Condensed consolidating statement of cash flows | ||||||
Net cash provided by (used in) operating activities | (150.9) | (97.6) | (100.4) | |||
Cash flows from investing activities | ||||||
Cash receipts on beneficial interest in sold receivables | 0 | 0 | 0 | |||
Capital expenditures | (2.9) | (0.5) | (1) | |||
Proceeds from sale of property, plant and equipment | 0 | 0 | ||||
Acquisition of intangible assets | 0 | 0 | ||||
Business acquisition, net of cash acquired | 0 | |||||
Proceeds from dispositions | 0 | |||||
Purchase of short-term investment | 0 | 0 | ||||
Proceeds from maturity of short-term investment | 0 | |||||
Settlement of foreign exchange contract | 0 | |||||
Other | 1.2 | 0.9 | ||||
Intercompany investment | 0 | 0 | 0 | |||
Net cash provided by investing activities | (1.7) | 0.4 | (1) | |||
Cash flows from financing activities | ||||||
Proceeds from long-term debt | 300.5 | 155 | 1,499.5 | |||
Repayments on long-term debt and capital leases | (281) | (203.4) | (186) | |||
Proceeds from short-term borrowings | 0 | 0 | ||||
Repayment of short-term borrowings | 0 | 0 | ||||
Debt issuance costs | (6.8) | (2) | (41.3) | |||
Payment of deferred consideration | 0 | |||||
Dividend paid to MTW | (1,362) | |||||
Net transactions with MTW | (4.6) | |||||
Exercises of stock options | 6.2 | 4.8 | 16.2 | |||
Payments on tax withholdings for equity awards | (3) | (5.4) | (3.8) | |||
Intercompany financing | 128.1 | 156.6 | 183.8 | |||
Net cash provided by (used in) financing activities | 144 | 105.6 | 101.8 | |||
Effect of exchange rate changes on cash | 0 | 0 | 0 | |||
Net (decrease) increase in cash and cash equivalents and restricted cash | (8.6) | 8.4 | 0.4 | |||
Balance at beginning of period | 8.8 | 8.8 | 8.8 | 8.8 | 0.4 | 0 |
Balance at end of period | 0.2 | 8.8 | 0.4 | |||
Guarantor Subsidiaries | Reportable Legal Entities | ||||||
Condensed consolidating statement of cash flows | ||||||
Net cash provided by (used in) operating activities | 148.5 | 169.3 | 84 | |||
Cash flows from investing activities | ||||||
Cash receipts on beneficial interest in sold receivables | 0 | 0 | 0 | |||
Capital expenditures | (11.1) | (12.5) | (8) | |||
Proceeds from sale of property, plant and equipment | 6 | 0 | ||||
Acquisition of intangible assets | (2.8) | (1.2) | ||||
Business acquisition, net of cash acquired | 0 | |||||
Proceeds from dispositions | 0 | |||||
Purchase of short-term investment | 0 | 0 | ||||
Proceeds from maturity of short-term investment | 0 | |||||
Settlement of foreign exchange contract | 0 | |||||
Other | 0 | 0 | ||||
Intercompany investment | (132.3) | (163.4) | (76.9) | |||
Net cash provided by investing activities | (146.2) | (171.1) | (84.9) | |||
Cash flows from financing activities | ||||||
Proceeds from long-term debt | 0 | 0 | 0.2 | |||
Repayments on long-term debt and capital leases | (0.4) | (0.5) | (0.5) | |||
Proceeds from short-term borrowings | 0 | 0 | ||||
Repayment of short-term borrowings | 0 | 0 | ||||
Debt issuance costs | 0 | 0 | 0 | |||
Payment of deferred consideration | (1.4) | |||||
Dividend paid to MTW | 0 | |||||
Net transactions with MTW | 0 | |||||
Exercises of stock options | 0 | 0 | 0 | |||
Payments on tax withholdings for equity awards | 0 | 0 | 0 | |||
Intercompany financing | 0 | 0 | 0 | |||
Net cash provided by (used in) financing activities | (1.8) | (0.5) | (0.3) | |||
Effect of exchange rate changes on cash | 0 | 0 | 0 | |||
Net (decrease) increase in cash and cash equivalents and restricted cash | 0.5 | (2.3) | (1.2) | |||
Balance at beginning of period | 0 | 0 | 0 | 0 | 2.3 | 3.5 |
Balance at end of period | 0.5 | 0 | 2.3 | |||
Non- Guarantor Subsidiaries | Reportable Legal Entities | ||||||
Condensed consolidating statement of cash flows | ||||||
Net cash provided by (used in) operating activities | (446.9) | (502.2) | (355.6) | |||
Cash flows from investing activities | ||||||
Cash receipts on beneficial interest in sold receivables | 576.4 | 552.1 | 494.3 | |||
Capital expenditures | (7.4) | (7.7) | (7) | |||
Proceeds from sale of property, plant and equipment | 6.3 | 0.5 | ||||
Acquisition of intangible assets | 0 | 0 | ||||
Business acquisition, net of cash acquired | (215.6) | |||||
Proceeds from dispositions | 1.1 | |||||
Purchase of short-term investment | (35) | (18.7) | ||||
Proceeds from maturity of short-term investment | 20.7 | |||||
Settlement of foreign exchange contract | (10) | |||||
Other | 0 | 0 | ||||
Intercompany investment | 4.2 | 6.8 | (106.9) | |||
Net cash provided by investing activities | 333.3 | 557.5 | 363.3 | |||
Cash flows from financing activities | ||||||
Proceeds from long-term debt | 175 | 0 | 1.4 | |||
Repayments on long-term debt and capital leases | (101.8) | (0.2) | (0.3) | |||
Proceeds from short-term borrowings | 30 | 4 | ||||
Repayment of short-term borrowings | (15) | (4) | ||||
Debt issuance costs | 0 | 0 | 0 | |||
Payment of deferred consideration | 0 | |||||
Dividend paid to MTW | 0 | |||||
Net transactions with MTW | 0 | |||||
Exercises of stock options | 0 | 0 | 0 | |||
Payments on tax withholdings for equity awards | 0 | 0 | 0 | |||
Intercompany financing | 0 | 0 | 0 | |||
Net cash provided by (used in) financing activities | 88.2 | (0.2) | 1.1 | |||
Effect of exchange rate changes on cash | (2.9) | 6.9 | 0.9 | |||
Net (decrease) increase in cash and cash equivalents and restricted cash | (28.3) | 62 | 9.7 | |||
Balance at beginning of period | $ 100.8 | $ 100.8 | $ 100.8 | 100.8 | 38.8 | 29.1 |
Balance at end of period | $ 72.5 | $ 100.8 | $ 38.8 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Feb. 28, 2019 | |
Subsequent Event [Line Items] | |||||
Restructuring expense | $ 6 | $ 10.8 | $ 2.5 | ||
Amount expected to be incurred under contract | $ 309.7 | $ 276.7 | $ 286.1 | ||
Subsequent event | Third-party consultant contract | |||||
Subsequent Event [Line Items] | |||||
Fees to be paid under contract | $ 8.4 | ||||
Minimum | Scenario, Forecast | Third-party consultant contract | |||||
Subsequent Event [Line Items] | |||||
Amount expected to be incurred under contract | $ 5 | ||||
Maximum | Scenario, Forecast | Third-party consultant contract | |||||
Subsequent Event [Line Items] | |||||
Amount expected to be incurred under contract | 6 | ||||
Employee Severance | Minimum | Scenario, Forecast | |||||
Subsequent Event [Line Items] | |||||
Restructuring expense | 4 | ||||
Employee Severance | Maximum | Scenario, Forecast | |||||
Subsequent Event [Line Items] | |||||
Restructuring expense | $ 5 |
Schedule II_ Valuation and Qu_2
Schedule II: Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for doubtful accounts | |||
Valuation and Qualifying Accounts | |||
Balance at beginning of period | $ 4 | $ 5.3 | $ 4 |
Charged to costs and expenses | 0.6 | (0.9) | 1.7 |
Utilization of reserve | (0.6) | (0.7) | (0.3) |
Other | (0.1) | 0.3 | (0.1) |
Balance at end of period | 3.9 | 4 | 5.3 |
Deferred tax valuation allowance | |||
Valuation and Qualifying Accounts | |||
Balance at beginning of period | 41 | 59.9 | 80.1 |
Charged to costs and expenses | (0.2) | 4.8 | 2.7 |
Utilization of reserve | 0 | (18.9) | (18.2) |
Other | (0.1) | (4.8) | (4.7) |
Balance at end of period | $ 40.7 | $ 41 | $ 59.9 |
Uncategorized Items - wbt-20181
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 1,100,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 1,100,000 |