Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 03, 2019 | |
Document and entity information | ||
Entity Registrant Name | Welbilt, Inc. | |
Trading Symbol | WBT | |
Entity Central Index Key | 0001650962 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 140,998,588 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Net sales | $ 375.3 | $ 350.4 |
Cost of sales | 248.8 | 224.2 |
Gross profit | 126.5 | 126.2 |
Selling, general and administrative expenses | 88.3 | 76.4 |
Amortization expense | 9.5 | 7.9 |
Restructuring expense | 4.2 | 0.4 |
Gain from disposal of assets — net | 0 | (0.1) |
Earnings from operations | 24.5 | 41.6 |
Interest expense | 24 | 20.3 |
Other expense — net | 3 | 8.5 |
(Loss) earnings before income taxes | (2.5) | 12.8 |
Income taxes | 0.1 | 0.4 |
Net (loss) earnings | $ (2.6) | $ 12.4 |
Per share data | ||
(Loss) earnings per share - Basic (in dollars per share) | $ (0.02) | $ 0.09 |
(Loss) earnings per share - Diluted (in dollars per share) | $ (0.02) | $ 0.09 |
Weighted average shares outstanding - Basic (in shares) | 140,612,213 | 139,708,723 |
Weighted average shares outstanding - Diluted (in shares) | 140,612,213 | 140,970,543 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net (loss) earnings | $ (2.6) | $ 12.4 |
Other comprehensive (loss) income, net of tax: | ||
Unrealized (loss) gain on derivatives | (1) | 2 |
Employee pension and post-retirement benefits | (1.2) | 0.5 |
Total other comprehensive (loss) income, net of tax | (2.2) | 2.5 |
Comprehensive (loss) income | $ (4.8) | $ 14.9 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 55.3 | $ 70.4 |
Restricted cash | 0 | 2.8 |
Short-term investment | 32.8 | 32 |
Accounts receivable, less allowance of $4.1 and $3.9 at March 31, 2019 and December 31, 2018, respectively | 212.8 | 112.5 |
Inventories — net | 205.7 | 190.6 |
Prepaids and other current assets | 34.4 | 32.2 |
Total current assets | 541 | 440.5 |
Property, plant and equipment — net | 119.3 | 119 |
Operating lease right-of-use assets | 35.7 | 0 |
Goodwill | 933.6 | 935.6 |
Other intangible assets — net | 533.8 | 546.7 |
Other non-current assets | 28.9 | 33.2 |
Total assets | 2,192.3 | 2,075 |
Current liabilities: | ||
Accounts payable | 124.9 | 151 |
Accrued expenses and other liabilities | 155.3 | 183.7 |
Short-term borrowings and current portion of finance leases | 1.2 | 16.1 |
Product warranties | 29.7 | 27.9 |
Total current liabilities | 311.1 | 378.7 |
Long-term debt and finance leases | 1,493.4 | 1,321.8 |
Deferred income taxes | 103.4 | 104.3 |
Pension and postretirement health obligations | 39.8 | 39.2 |
Operating lease liabilities | 22.1 | 0 |
Other long-term liabilities | 37.2 | 44.6 |
Total non-current liabilities | 1,695.9 | 1,509.9 |
Commitments and contingencies (Note 12) | ||
Total equity: | ||
Common stock ($0.01 par value, 300,000,000 shares authorized, 140,857,204 shares and 140,252,693 shares issued and 140,857,204 shares and 140,252,693 shares outstanding at March 31, 2019 and December 31, 2018, respectively) | 1.4 | 1.4 |
Additional paid-in capital (deficit) | (38) | (41.5) |
Retained earnings | 266 | 268.4 |
Accumulated other comprehensive loss | (43.8) | (41.6) |
Treasury stock, at cost, 53,015 shares and 53,308 shares, respectively | (0.3) | (0.3) |
Total equity | 185.3 | 186.4 |
Total liabilities and equity | $ 2,192.3 | $ 2,075 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable allowance | $ 4.1 | $ 3.9 |
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) | 140,857,204 | 140,252,693 |
Common stock, outstanding (in shares) | 140,857,204 | 140,252,693 |
Treasury stock (in shares) | 53,015 | 53,308 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities | ||
Net (loss) earnings | $ (2.6) | $ 12.4 |
Adjustments to reconcile net (loss) earnings to cash used in operating activities: | ||
Depreciation | 4.9 | 4.2 |
Amortization of intangible assets | 9.5 | 7.9 |
Amortization of debt issuance costs | 1.2 | 1.4 |
Deferred income taxes | 0 | (1.6) |
Stock-based compensation expense | 2.9 | 3.2 |
Gain from disposal of assets — net | 0 | (0.1) |
Pension settlement | 1.2 | 0 |
Gain on remeasurement of debt and other realized foreign currency derivative | (0.8) | 0 |
Changes in operating assets and liabilities, excluding the effects of the business acquisition: | ||
Accounts receivable | (296.2) | (130.9) |
Inventories | (14.5) | (23) |
Other assets | (2) | (1.5) |
Accounts payable | (26.7) | 8.4 |
Other current and long-term liabilities | (33.9) | (39.1) |
Net cash used in operating activities | (357) | (158.7) |
Cash flows from investing activities | ||
Cash receipts on beneficial interest in sold receivables | 196 | 127.9 |
Capital expenditures | (4.8) | (3.7) |
Purchase of short-term investment | 0 | (35) |
Proceeds from maturity of short-term investment | 0 | 20.7 |
Other | 0.2 | 0.3 |
Net cash provided by investing activities | 191.4 | 110.2 |
Cash flows from financing activities | ||
Proceeds from long-term debt | 196.5 | 74 |
Repayments on long-term debt and finance leases | (32.8) | (19.2) |
Debt issuance costs | 0 | (0.1) |
Repayment of short-term borrowings | (15) | 0 |
Payment of contingent consideration | (0.8) | 0 |
Exercises of stock options | 0.6 | 2.5 |
Payments on tax withholdings for equity awards | (1.8) | (2) |
Net cash provided by financing activities | 146.7 | 55.2 |
Effect of exchange rate changes on cash | 1 | 3.6 |
Net (decrease) increase in cash and cash equivalents and restricted cash | (17.9) | 10.3 |
Balance at beginning of period | 73.2 | 108.8 |
Balance at end of period | 55.3 | 119.1 |
Supplemental disclosures of cash flow information: | ||
Cash paid for income taxes, net of refunds | 11 | 10.4 |
Cash paid for interest, net of related hedge settlements | 23.3 | 26 |
Supplemental disclosures of non-cash activities: | ||
Non-cash financing activity: Equipment acquired through leasing arrangements | 0.8 | 0 |
Non-cash investing activity: Beneficial interest obtained in exchange for securitized receivables | $ 238.6 | $ 169.2 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital (Deficit) | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock |
Beginning balance (in shares) at Dec. 31, 2017 | 139,491,860 | |||||
Beginning balance at Dec. 31, 2017 | $ 103.6 | $ 1.4 | $ (54.7) | $ 189.1 | $ (32) | $ (0.2) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) earnings | 12.4 | 12.4 | ||||
Issuance of common stock, stock-based compensation plans (in shares) | 419,109 | |||||
Issuance of common stock, stock-based compensation plans | 2.5 | 2.5 | ||||
Stock-based compensation expense | 3.2 | 3.2 | ||||
Other comprehensive (loss) income | 2.5 | 2.5 | ||||
Ending balance (in shares) at Mar. 31, 2018 | 139,910,969 | |||||
Ending balance at Mar. 31, 2018 | $ 125.3 | $ 1.4 | (49) | 202.6 | (29.5) | (0.2) |
Beginning balance (in shares) at Dec. 31, 2018 | 140,252,693 | 140,252,693 | ||||
Beginning balance at Dec. 31, 2018 | $ 186.4 | $ 1.4 | (41.5) | 268.4 | (41.6) | (0.3) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) earnings | (2.6) | (2.6) | ||||
Issuance of common stock, stock-based compensation plans (in shares) | 604,511 | |||||
Issuance of common stock, stock-based compensation plans | 0.6 | 0.6 | ||||
Stock-based compensation expense | 2.9 | 2.9 | ||||
Other comprehensive (loss) income | $ (2.2) | (2.2) | ||||
Ending balance (in shares) at Mar. 31, 2019 | 140,857,204 | 140,857,204 | ||||
Ending balance at Mar. 31, 2019 | $ 185.3 | $ 1.4 | $ (38) | $ 266 | $ (43.8) | $ (0.3) |
Description of the Business
Description of the Business | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Description of the Business | 1. Description of the Business Welbilt, Inc. and its consolidated subsidiaries (collectively, "Welbilt" or the "Company") 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 operates 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 |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
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 unaudited 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 in consolidation. 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. 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 the opinion of management, the consolidated financial statements contain all adjustments necessary for a fair statement of the results of operations and comprehensive income for the three months ended March 31, 2019 and 2018 , the financial position at March 31, 2019 and December 31, 2018 and the cash flows for the three months ended March 31, 2019 and 2018 , and except as otherwise discussed, such adjustments consist only of those of a normal recurring nature. The interim results are not necessarily indicative of results that may be achieved in a full reporting year. Certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the Securities and Exchange Commission's ("SEC") rules and regulations governing interim financial statements. However, the Company believes that the disclosures made in the unaudited consolidated financial statements and related notes are adequate to make the information presented not misleading. These consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2018 . All dollar amounts, except share and per share amounts, are in millions of dollars throughout the tables included in these notes unless otherwise indicated. Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation and include: • Reclassification of the current portion of capital leases totaling $1.1 million from "Current portion of capital leases" to "Short-term borrowings and current portion of finance leases" in the consolidated balance sheet for the period ended December 31, 2018 as a result of the adoption of ASU 2016-02, "Leases (Topic 842)." • Reclassification of separation expense for the three months ended March 31, 2018 totaling $0.1 million from "Separation expense" to "Selling, general and administrative expenses." Revision of Previously Issued Consolidated Financial Statements As previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 , the Company identified certain errors in its previously issued unaudited consolidated financial statements. The Company assessed the materiality of the errors on all prior period financial statements and concluded they were not material to any prior annual or interim periods. The Company corrected these errors by revising its unaudited interim financial information for the three months ended March 31, 2018 to correct for the impact of such errors. Refer to Note 20, "Revision of Previously Issued Consolidated Financial Statements," for additional discussion of the errors and related error corrections on the unaudited quarterly financial statements. The Company will revise its unaudited financial statements for the 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 and six months ended June 30, 2019 and the three and nine months ended September 30, 2019, respectively. Business Transformation Program During the first quarter of 2019, the Company launched a business transformation program ("Transformation Program") with a comprehensive operational review to validate the Company's long-term growth and margin targets and to refine the Company's execution plans. The Transformation Program will focus on specific areas of opportunity including strategic sourcing, manufacturing facility workflow redesign, distribution and administrative process efficiencies and optimizing the Company's global brand platforms. During the three months ended March 31, 2019 , the Company incurred costs related to the Transformation Program of $5.8 million that are recorded in "Selling, general and administrative expenses" in the consolidated statement of operations. The Company expects to incur additional costs through mid-2021 as the various elements of the Transformation Program are implemented. Recently Adopted Accounting Pronouncements 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 ("LIBOR") 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. This standard became effective for the Company on January 1, 2019. The adoption of this standard did not have an impact on the Company's consolidated financial statements. 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 U.S. Tax Cuts and Jobs Act’s ("the Tax Act") reduction in the corporate statutory tax rate . ASU 2018-02 provides the option of reclassifying what are called the “stranded” tax effects within accumulated other comprehensive income (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 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 Act related to items remaining in accumulated other comprehensive income (loss) are recognized, or (2) at the beginning of the period of adoption. The Company adopted this standard effective January 1, 2019 and elected not to reclassify the "stranded" income tax effects from accumulated other comprehensive loss ("AOCI") to retained earnings. Future income tax effects that are stranded in AOCI will be released using an investment-by-investment approach. 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 GAAP. The standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. This standard became effective for the Company on January 1, 2019. The Company adopted this standard on a modified retrospective basis and it did not have a material impact on the Company's consolidated financial statements. 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. This standard became effective for the Company on January 1, 2019. The adoption of this standard did not have an impact on the Company's consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)" including subsequent amendments issued thereafter which include ASU 2018-10 "Codification Improvements to Topic 842, Leases," ASU 2018-11 "Leases (Topic 842) Targeted Improvements" and ASU 2019-01 "Leases (Topic 842) Codification Improvements" (collectively, "ASC Topic 842"). ASC Topic 842 requires lessees to recognize the right-of-use assets and lease liabilities on its balance sheet. Accounting for finance leases is substantially unchanged. This standard became effective for the Company on January 1, 2019. 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 used the modified retrospective method and recognized the cumulative effect of the initial application of ASC Topic 842 as an adjustment to the opening balance of retained earnings. The adjustment is principally driven by the recognition of remaining deferred gain associated with a previous sale-leaseback transaction. Prior to the adoption of ASU 2016-02, gains on sale leaseback transactions were generally deferred and recognized in the income statement over the lease term. Prior period results have not been adjusted and continue to be reported under the accounting standards in effect for such period. Upon adoption, the Company recognized right-of-use assets and lease liabilities for operating leases in the amount of $38.0 million and $36.6 million , respectively, with the difference reflective of a reclassification of existing prepaid expense balances to the right-of-use asset. In connection with the adoption of this guidance, the Company elected the package of practical expedients available in the standard and as a result, did not reassess the lease classification of existing contracts or leases or the initial direct costs associated with existing leases and has made an accounting policy election not to recognize right-of-use assets and lease liabilities for leases with a lease term of 12 months or less, including renewal options that are reasonably certain to be exercised, that also do not include an option to purchase the underlying asset that is reasonably certain of exercise. Instead, lease payments for these leases are recognized as lease cost on a straight-line basis over the lease term. In addition, the Company did not elect the hindsight practical expedient and has elected not to separate the accounting for lease components and non-lease components, for all classes of leased assets. Certain of the Company’s leases include variable lease costs primarily comprising reimbursement to the lessor for taxes and insurance expenses, and certain non-lease components that transfer a distinct service to the Company, such as maintenance services and usage charges. These variable lease costs are determined based upon the terms of each respective lease contract. Under ASC Topic 842, a lease is a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment (i.e., an identified asset) for a period of time in exchange for consideration. The Company determines if an arrangement is a lease at inception. The Company’s contracts determined to be or contain a lease include explicitly or implicitly identified assets where the Company has the right to substantially all of the economic benefits of the assets and has the ability to direct how and for what purpose the assets are used during the lease term. Leases are classified as either operating or financing. For operating leases, the Company has recognized a lease liability equal to the present value of the remaining lease payments, and a right-of-use asset equal to the lease liability, subject to certain adjustments, such as for prepaid rents. The Company uses its incremental borrowing rate to determine the present value of the lease payments. The Company’s incremental borrowing rate is the rate of interest that it would have to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. The Company determined the incremental borrowing rates for its leases by applying its applicable borrowing rate, with adjustment as appropriate for instruments with similar characteristics. The lease term at the lease commencement date is determined based on the non-cancellable period for which the Company has the right to use the underlying asset, together with any periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option, periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option, and periods covered by an option to extend (or not to terminate) the lease in which the exercise of the option is controlled by the lessor. The Company considered a number of factors when evaluating whether the options in its lease contracts were reasonably certain of exercise, such as length of time before option exercise, expected value of the leased asset at the end of the initial lease term, importance of the lease to overall operations, costs to negotiate a new lease, and any contractual or economic penalties. See additional discussion of leases in Note 17, "Leases." Recent Accounting Pronouncements Not Yet Adopted In April 2019, the FASB issued ASU 2019-04, "Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments" which provides narrow-scope amendments designed to assist in the application of ASU 2016-01, 2016-13 and 2017-12 and the relevant accounting standards. 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 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 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. |
Acquisition
Acquisition | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisition | 3. Acquisition 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. During the three months ended March 31, 2019 , the Company finalized its purchase price allocation for the Crem Acquisition without recording any measurement period adjustments subsequent to December 31, 2018. During the three months ended March 31, 2019 and 2018 , the Company incurred approximately $0.1 million and $1.2 million , respectively, 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 an unrealized loss of $7.8 million in the three months ended March 31, 2018 and is included in the consolidated statement of operations in "Other expense — net." The operations of Crem contributed approximately $20.8 million to net sales while incurring a loss from operations of approximately $1.1 million for the three months ended March 31, 2019 |
Accounts Receivable Securitizat
Accounts Receivable Securitization | 3 Months Ended |
Mar. 31, 2019 | |
Transfers and Servicing [Abstract] | |
Accounts Receivable Securitization | 4. Accounts Receivable Securitization Prior to its termination on March 13, 2019, the Company participated in a $110.0 million accounts receivable securitization program whereby the Company sold 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 would in turn, sell, convey, transfer and assign to a third-party financial institution (the “Purchaser”), all the rights, title and interest in and to its pool of receivables. Under this program, the Company generally received cash consideration up to a certain limit and recorded a non-cash exchange for sold receivables for the remainder of the purchase price ("deferred purchase price"). The sale of these receivables qualified for sale accounting treatment. The Company maintained a "beneficial interest," or right to collect cash, in the sold receivables. During the period of this program, cash receipts from the Purchaser at the time of the sale were classified as operating cash while cash receipts from the beneficial interest on sold receivables were classified as investing activities on the consolidated statements of cash flows. The Company, along with certain of its subsidiaries, acted as servicers of the sold receivables. The servicers would administer, collect and otherwise enforce these receivables and were compensated for doing so on terms that were generally consistent with what would be charged by an unrelated servicer. The servicers initially received payments made by obligors on the receivables but were required to remit those payments in accordance with the receivables purchase agreement. Upon termination of the program, the Purchaser had no recourse for uncollectible receivables. 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 approximated book value and, as of December 31, 2018 , totaled $56.9 million and was recorded in "Accounts receivable, less allowance" in the consolidated balance sheet. The Company deemed 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 receivables removed from the Company's consolidated balance sheet in connection with the accounts receivable securitization program was $96.9 million at December 31, 2018 . In connection with the termination of the accounts receivable securitization program during the first quarter of 2019, approximately $156.9 million of accounts receivable sold under the program were reacquired in exchange for the outstanding deferred purchase price receivable and cash, which was provided by receipts of previously sold trade receivables. Cash proceeds collected on the reacquired receivables were $65.0 million for the three months ended March 31, 2019 and have been classified as investing cash flows in the Company's consolidated statement of cash flows. Non-cash settlements incurred subsequent to the termination, have generally been previously reserved for and have been classified as operating cash flows in the Company's consolidated statement of cash flows. The remaining carrying value of reacquired trade receivables included in the Company's consolidated balance sheet at March 31, 2019 was $90.1 million |
Inventories - Net
Inventories - Net | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories - Net | 5. Inventories — Net The components of "Inventories — net" at March 31, 2019 and December 31, 2018 are summarized as follows: March 31, December 31, (in millions) 2019 2018 Inventories — gross: Raw materials $ 96.8 $ 90.4 Work-in-process 18.3 16.0 Finished goods 116.7 108.8 Total inventories — gross 231.8 215.2 Excess and obsolete inventory reserve (21.9 ) (20.4 ) Net inventories at FIFO cost 209.9 194.8 Excess of FIFO costs over LIFO value (4.2 ) (4.2 ) Inventories — net $ 205.7 $ 190.6 |
Property, Plant and Equipment -
Property, Plant and Equipment - Net | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 and December 31, 2018 are summarized as follows: March 31, December 31, (in millions) 2019 2018 Land $ 9.6 $ 9.8 Building and improvements 89.0 88.5 Machinery, equipment and tooling 228.9 226.6 Furniture and fixtures 6.6 6.5 Computer hardware and software 59.1 58.3 Construction in progress 23.4 21.1 Total cost 416.6 410.8 Less accumulated depreciation (297.3 ) (291.8 ) Property, plant and equipment — net $ 119.3 $ 119.0 |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses and Other Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses and Other Liabilities | 7. Accounts Payable and Accrued Expenses and Other Liabilities "Accounts payable" and "Accrued expenses and other liabilities" at March 31, 2019 and December 31, 2018 are summarized as follows: March 31, December 31, (in millions) 2019 2018 Accounts payable: Trade accounts payable $ 124.9 $ 151.0 Total accounts payable $ 124.9 $ 151.0 Accrued expenses and other liabilities: Interest payable $ 2.8 $ 2.2 Income taxes payable 0.8 10.2 Employee related expenses 29.4 30.0 Restructuring expenses 4.8 3.0 Profit sharing and incentives 6.4 19.9 Accrued rebates 33.5 50.8 Deferred revenue — current 2.6 2.7 Customer advances 3.5 3.1 Product liability 1.3 1.3 Derivative liability 10.7 18.4 Current portion of operating lease liabilities 12.2 — Miscellaneous accrued expenses 47.3 42.1 Total accrued expenses and other liabilities $ 155.3 $ 183.7 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes The Company’s effective tax rates for the three months ended March 31, 2019 and 2018 vary from the 21.0% U.S. federal statutory rate primarily due to the relative weighting of foreign earnings before income taxes, discrete tax items and taxes on foreign income. Foreign earnings are generated from operations in the Company’s three reportable segments of Americas, EMEA and APAC. For the three months ended March 31, 2019 , the Company recorded a $0.1 million income tax provision, reflecting a (4.0)% effective tax rate, which included discrete expenses of $0.8 million related to equity compensation and foreign tax audit adjustments. For the three months ended March 31, 2018 , the Company recorded a $0.4 million income tax provision reflecting a 3.1% effective tax rate, which was inclusive of a $3.7 million discrete tax benefit. The discrete tax benefit primarily consisted of tax balances that were adjusted upon filing the U.S. federal and state corporate tax returns. The $0.3 million decrease in the Company's income tax provision for the three months ended March 31, 2019 , relative to the three months ended March 31, 2018 , was primarily attributable to the reduction of earnings before income taxes and discrete tax items. 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. The Company will continue to evaluate its valuation allowance requirements via possible sources of taxable income that may be available to realize a tax benefit for deferred tax assets. This evaluation includes U.S. interest expense limitations of the U.S. Tax Cuts and Jobs Act. As facts and circumstances change, the Company 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 current operations through the Company’s income tax provision and could have a material effect on operating results. The Company's unrecognized tax benefits, including interest and penalties, were $13.1 million and $13.0 million as of March 31, 2019 , and December 31, 2018 , respectively. During the next twelve months, it is reasonably possible that unrecognized tax benefits could change in the range of $0.2 million to $1.7 million due to the expiration of relevant statutes of limitations and federal, state and foreign tax audit resolutions. The Company regularly assesses the likelihood of an adverse outcome resulting from examinations to determine the adequacy of its tax reserves. As of March 31, 2019 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | 9. Debt Outstanding debt at March 31, 2019 and December 31, 2018 is summarized as follows: (in millions, except percentage data) March 31, 2019 Weighted Average Interest Rate December 31, 2018 Weighted Average Interest Rate Revolving loan facility $ — 4.35 % $ 15.0 4.06 % Revolving credit facility 242.0 5.18 % 78.0 4.70 % Term Loan B facility 855.0 5.43 % 855.0 5.22 % 9.50% Senior Notes due 2024 425.0 9.87 % 425.0 9.72 % Finance leases 2.6 4.47 % 2.8 4.50 % Total debt and finance leases, including current portion 1,524.6 1,375.8 Less: Revolving loan facility — (15.0 ) Current portion of finance leases (1.1 ) (1.1 ) Unamortized debt issuance costs (1) (23.3 ) (24.2 ) Hedge accounting fair value adjustment (2) (6.8 ) (13.7 ) Total long-term debt and finance leases $ 1,493.4 $ 1,321.8 (1) Total outstanding debt issuance costs, net of amortization as of March 31, 2019 and December 31, 2018 was $26.4 million and $27.3 million , respectively, of which $3.1 million was related to the revolving credit facility and recorded in "Other non-current assets" in the consolidated balance sheets, for both periods respectively. (2) Represents the change in fair value due to changes in benchmark interest rates related to the Company's Senior Notes due 2024 ("Senior Notes"). Refer to Note 10, "Derivative Financial Instruments," for additional information on the Company's interest rate swap designated as a fair value hedge. 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 $1,300.0 million senior secured credit facility consisting of (i) a senior secured Term Loan B facility in an aggregate principal amount of $900.0 million (the "Term Loan B Facility") and (ii) a senior secured revolving credit facility in an aggregate principal amount of $400.0 million (the "Revolving Facility") and, together with the Term Loan B Facility, the "Senior Secured Credit Facilities"). The 2016 Credit Agreement also provides for a (i) sublimit for the issuance of letters of credit under the revolving commitments to $30.0 million and (ii) aggregate principal amount of allowed incremental revolving or term loan facilities thereunder 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 pro forma secured leverage ratio does not exceed 3.75 : 1.00 . The maturity of the Term Loan B and Revolving Facility is October 2025 and October 2023, respectively. In 2019, borrowings under the 2016 Credit Agreement bore interest at a rate per annum equal to, at the Company's 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 the Company's 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 Company had $3.7 million in outstanding stand-by letters of credit and $154.3 million available for additional borrowings under the Revolving Facility. As of March 31, 2019 , the spreads for LIBOR and alternate base rate borrowings were 2.25% and 1.25% , respectively. The 2016 Credit Agreement contains 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, in each case, as defined in the 2016 Credit Agreement. In April 2018, the Company, through a wholly-owned subsidiary, entered into a short-term secured $30.0 million revolving loan facility for working capital requirements. This revolving loan facility bore interest at LIBOR plus an applicable margin of 1.90% and matured on April 18, 2019. The Company repaid the outstanding balance of the facility during the three months ended March 31, 2019 . As of March 31, 2019 |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 10. 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. Cross-currency interest rate swaps are entered into to protect 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 fair value hedges 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 gain or loss on the derivative is recorded in AOCI in the consolidated balance sheets and subsequently reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. In the next twelve months, the Company estimates $1.0 million of unrealized gains , net of tax, related to currency rate, commodity price and interest rate risk 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. In March 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. In March 2019, the interest rate swap with a notional amount of $175.0 million matured. The remaining interest rate swap agreement with a notional amount of $425.0 million matures in March 2020. Approximately 27.9% of the Company’s total outstanding long-term debt had its interest payments designated as a cash flow hedge under the remaining interest rate swap agreement as of March 31, 2019 . As of March 31, 2019 , and December 31, 2018 , the Company had the following outstanding commodity and currency forward contracts that were entered into as hedges of forecasted transactions: Units Hedged Commodity March 31, 2019 December 31, 2018 Unit Aluminum 1,302 1,446 MT Copper 562 546 MT Steel 7,223 7,080 Short tons Units Hedged Currency March 31, 2019 December 31, 2018 Canadian Dollar 22,543,000 10,990,000 European Euro 19,190,500 9,878,000 British Pound 12,804,498 12,041,770 Mexican Peso 255,955,000 175,960,000 Singapore Dollar 2,128,000 1,480,000 The effects of derivative instruments on the consolidated statements of comprehensive income and consolidated statements of operations for the three months ended March 31, 2019 and 2018 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 Pretax gain/(loss) reclassified from AOCI into income Three Months Ended March 31, Location Three Months Ended March 31, 2019 2018 2019 2018 Foreign currency exchange contracts $ (0.1 ) $ 0.8 Cost of sales $ (0.3 ) $ 0.5 Commodity contracts 0.2 (0.5 ) Cost of sales (0.1 ) 0.5 Interest rate swap contracts (0.6 ) 3.0 Interest expense 1.1 (0.1 ) Total $ (0.5 ) $ 3.3 $ 0.7 $ 0.9 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 loss or gain on the hedged item attributable to the hedged risk are recognized in the same line item associated with the hedged item in current earnings. In October 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 27.9% 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 March 31, 2019 . As of March 31, 2019 and December 31, 2018 , the following amounts were recorded on the consolidated balance sheets related to cumulative basis adjustments for the fair value hedge: Line item in the consolidated balance sheets in which the hedged item is included (in millions) Carrying amount of the hedged liability Cumulative amount of fair value hedge adjustment included in the carrying amount of the hedged liability (1) March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 Long-term debt and finance leases $ 418.2 $ 411.3 $ (6.8 ) $ (13.7 ) Total $ 418.2 $ 411.3 $ (6.8 ) $ (13.7 ) (1) The balance as of March 31, 2019 and December 31, 2018 includes $0.2 million and $0.3 million of hedging adjustment on a discontinued hedge relationship, respectively. Statements of Operations Location and Impact of Cash Flow and Fair Value Derivative Instruments The table below presents the effect of the Company’s derivative financial instruments on the statements of operations for the three months ended March 31, 2019 and 2018 : Location and amount of gain/(loss) recognized on fair value and cash flow hedging relationships Three Months Ended March 31, Three Months Ended March 31, 2019 2018 (in millions) Cost of Sales Interest Expense Cost of Sales Interest Expense Total amounts of expense line items presented in the statements of operations in which effects of fair value and cash flow hedges are recorded $ 248.8 $ 24.0 $ 224.2 $ 20.3 The effects of fair value and cash flow hedging: Gain/(loss) on fair value hedging relationship: Interest rate contract: Hedged Item $ — $ (7.0 ) $ — $ 8.8 Derivative designated as hedging instrument $ — $ 6.6 $ — $ (8.5 ) Gain/(loss) on cash flow hedging relationships: Foreign currency exchange contracts: Amount of gain/(loss) reclassified from AOCI into income $ (0.3 ) $ — $ 0.5 $ — Commodity contracts: Amount of gain/(loss) reclassified from AOCI into income $ (0.1 ) $ — $ 0.5 $ — Interest rate contracts: Amount of gain/(loss) reclassified from AOCI into income $ — $ 1.1 $ — $ (0.1 ) 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. Amounts are reclassified out of AOCI into earnings when the hedged net investment is either sold or substantially liquidated. In March 2017, the Company entered into a three -year cross-currency interest rate swap contract ("CCS") 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. Effective January 1, 2019, as a result of the adoption of ASU 2017-12, the Company elected to re-designate the CCS as a net investment hedge under the spot method. Changes in the fair value of the CCS that are included in the assessment of effectiveness due to spot foreign exchange rates are recorded as cumulative translation adjustment within AOCI and will remain in AOCI until either the sale or substantially complete liquidation of the subsidiary. As an additional accounting policy election applied to similar hedges under ASU 2017-12, the initial value of any component excluded from the assessment of effectiveness is recognized in income using a systematic and rational method over the remaining life of the hedging instrument. Any difference between the change in the fair value of the excluded component and amounts recognized in income under that systematic and rational method is recognized in AOCI. The Company has elected to amortize the initial excluded component value as an increase of interest income within “Other expense — net” in the consolidated statement of operations using the straight-line method over the remaining term of the CCS. Additionally, the accrual of periodic U.S. dollar and Euro-denominated interest receipts and payments under the terms of the CCS will also be recognized as interest income within “Other expense — net” in the consolidated statements of operations. The location and effects of the derivative instrument on the consolidated statements of comprehensive income and consolidated statements of operations for the three months ended March 31, 2019 and 2018 were as follows: Derivatives in net investment hedging relationships (in millions) Pretax gain/(loss) recognized in AOCI Gain/(loss) reclassified from AOCI into income Gain/(loss) recognized in income (amount excluded from effectiveness testing) Three Months Ended March 31, Location Three Months Ended March 31, Location Three Months Ended March 31, 2019 2018 2019 2018 2019 2018 Interest rate swap contract $ 1.6 $ (1.7 ) N/A $ — $ — Other expense — net $ 0.4 $ — Total $ 1.6 $ (1.7 ) $ — $ — $ 0.4 $ — N/A = Not applicable 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 as identified. 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. During the first quarter of 2018, the Company entered into a short-term foreign currency exchange contract to purchase SEK 1,800.0 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 price fluctuations on the contracted price of the Crem Acquisition (see Note 3, "Acquisition," for additional discussion of the Crem Acquisition). As of March 31, 2018, the SEK Contract was in a short-term liability position of $7.8 million and was included in "Accrued expenses and other liabilities" in the consolidated balance sheet. As of March 31, 2019 and December 31, 2018 , the Company had the following outstanding currency forward contracts that were not designated as hedging instruments: Units Hedged Currency March 31, 2019 December 31, 2018 Singapore Dollar 28,272,000 28,447,000 European Euro 67,300,000 69,700,000 British Pound 34,292,568 23,704,468 Swiss Franc 5,300,000 5,300,000 The location and effects on the consolidated statements of operations for the three months ended March 31, 2019 and 2018 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 Three Months Ended March 31, 2019 2018 Foreign currency exchange contracts $ 2.8 $ (12.9 ) Other expense — net Total $ 2.8 $ (12.9 ) The fair value of outstanding derivative contracts recorded as assets in the consolidated balance sheets as of March 31, 2019 and December 31, 2018 was as follows: Asset Derivatives Fair Value (in millions) Balance Sheet Location March 31, 2019 December 31, 2018 Derivatives designated as hedging instruments: Foreign currency exchange contracts Prepaids and other current assets $ 0.4 $ 0.5 Commodity contracts Prepaids and other current assets 0.2 0.2 Interest rate swap contracts Prepaids and other current assets 2.6 4.8 Interest rate swap contracts Other non-current assets — 3.4 Total derivatives designated as hedging instruments $ 3.2 $ 8.9 Derivatives NOT designated as hedging instruments: Foreign currency exchange contracts Prepaids and other current assets $ 1.1 $ 0.1 Total derivatives NOT designated as hedging instruments $ 1.1 $ 0.1 Total asset derivatives $ 4.3 $ 9.0 The fair value of outstanding derivative contracts recorded as liabilities in the consolidated balance sheets as of March 31, 2019 and December 31, 2018 was as follows: Liability Derivatives Fair Value (in millions) Balance Sheet Location March 31, 2019 December 31, 2018 Derivatives designated as hedging instruments: Foreign currency exchange contracts Accrued expenses and other liabilities $ 1.1 $ 1.5 Commodity contracts Accrued expenses and other liabilities 0.8 0.9 Interest rate swap contracts Accrued expenses and other liabilities 8.8 15.7 Commodity contracts Other long-term liabilities 0.1 0.4 Interest rate swap contracts Other long-term liabilities 1.1 5.9 Total derivatives designated as hedging instruments $ 11.9 $ 24.4 Derivatives NOT designated as hedging instruments: Foreign currency exchange contracts Accrued expenses and other liabilities $ — $ 0.3 Total derivatives NOT designated as hedging instruments $ — $ 0.3 Total liability derivatives $ 11.9 $ 24.7 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 11. 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 utilizes 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 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 March 31, 2019 and December 31, 2018 due to the short-term nature of these instruments. The short-term investment balance as of March 31, 2019 and December 31, 2018 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. There are no indicators of other-than-temporary impairment for this security and the Company has not experienced credit losses during any period. The fair value of the Company's Senior Notes was approximately $458.3 million and $457.0 million as of March 31, 2019 and December 31, 2018 , respectively. The fair value of the Company's Term Loan B Facility was approximately $840.0 million and $815.5 million as of March 31, 2019 and December 31, 2018 , respectively. The related carrying values are disclosed in Note 9, "Debt." The following tables set forth financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2019 and December 31, 2018 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 March 31, 2019 (in millions) Level 1 Level 2 Level 3 Total Current assets: Short-term investment $ — $ 32.8 $ — $ 32.8 Foreign currency exchange contracts — 1.5 — 1.5 Commodity contracts — 0.2 — 0.2 Interest rate swap contracts — 2.6 — 2.6 Total current assets at fair value — 37.1 — 37.1 Total assets at fair value $ — $ 37.1 $ — $ 37.1 Current liabilities: Foreign currency exchange contracts $ — $ 1.1 $ — $ 1.1 Commodity contracts — 0.8 — 0.8 Interest rate swap contracts — 8.8 — 8.8 Total current liabilities at fair value — 10.7 — 10.7 Non-current liabilities: Commodity contracts — 0.1 — 0.1 Interest rate swap contracts — 1.1 — 1.1 Total non-current liabilities at fair value — 1.2 — 1.2 Total liabilities at fair value $ — $ 11.9 $ — $ 11.9 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 |
Contingencies and Significant E
Contingencies and Significant Estimates | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Significant Estimates | 12. Contingencies and Significant Estimates Environmental, Product Liability and Product Warranty Matters As of March 31, 2019 and December 31, 2018 , the Company held reserves for environmental matters related to certain locations of approximately $0.7 million . 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 is not reasonably estimable. Based upon available information, the Company does not expect the ultimate costs at any of these locations will have a material adverse effect on its financial condition, results of operations or cash flows individually or in the aggregate. As of March 31, 2019 , various product liability 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 at March 31, 2019 and December 31, 2018 and were $1.3 million ; $0.5 million and $0.6 million , respectively, were reserved specifically for actual cases, and $0.8 million and $0.7 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 March 31, 2019 and December 31, 2018 , the Company had reserved $39.7 million 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 13, "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 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 March 15, 2019, a purported shareholder derivative action was filed in the U.S. District Court for the District of Delaware against certain of the Company's current and former executive officers and directors, with the Company named as a nominal defendant. The lawsuit is captioned Quinney v. Muehlhaeuser, et al. , and alleges violation of Section 14(a) of the Securities Exchange Act of 1934 and breach of fiduciary duty, among other claims, based upon similar underlying allegations as those in the Schlimm lawsuit. The Quinney lawsuit seeks an unspecified amount of damages and an award of attorney’s fees, in addition to other relief. The Company intends to defend against these lawsuits vigorously. However, litigation is inherently uncertain, and the Company is unable to predict the outcome of these matters 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 declaration of imported products relating to quantity, classification, antidumping and countervailing duties, and other matters. Based on currently known information, it is probable that the Company may be assessed retroactive customs duties and related fees on previous imports but the Company is 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. |
Product Warranties
Product Warranties | 3 Months Ended |
Mar. 31, 2019 | |
Guarantees and Product Warranties [Abstract] | |
Product Warranties | 13. 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 three months ended March 31, 2019 : (in millions) Balance at December 31, 2018 (1) $ 39.7 Accruals for warranties issued 8.7 Settlements made (in cash or in kind) (8.9 ) Currency translation impact 0.2 Balance at March 31, 2019 (1) $ 39.7 (1) Long-term warranty liabilities are included in "Other long-term liabilities" and totaled $10.0 million and $11.8 million at March 31, 2019 and December 31, 2018 , 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 extended warranties included in "Accrued expenses and other liabilities" in the consolidated balance sheets at March 31, 2019 and December 31, 2018 was $2.2 million . The long-term portion of deferred revenue on warranties included in "Other long-term liabilities" in the consolidated balance sheets at March 31, 2019 and December 31, 2018 was $3.8 million |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | 14. Employee Benefit Plans The components of periodic benefit costs for the defined benefit plans for the three months ended March 31, 2019 and 2018 were as follows: Three Months Ended March 31, 2019 2018 (in millions) Pension Plans Postretirement Pension Plans Postretirement Interest cost of projected benefit obligations $ 1.3 $ 0.1 $ 1.3 $ 0.1 Expected return on assets (1.2 ) — (1.5 ) — Amortization of actuarial net loss 0.5 0.1 0.6 — Settlement loss recognized 1.2 — — — Net periodic benefit cost $ 1.8 $ 0.2 $ 0.4 $ 0.1 The components of periodic benefit costs are recorded in "Other expense — net" in the consolidated statements of operations. During the first quarter of 2019, the Company took various actions to settle a portion of its United Kingdom ("U.K.") pension obligations. These actions resulted in a reduction in accrued pension obligations of approximately $5.5 million and a non-cash settlement loss of approximately $1.2 million , related to the accelerated recognition of unamortized losses for the three months ended March 31, 2019 |
Restructuring
Restructuring | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | 15. 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 for the three months ended March 31, 2019 : (in millions) Balance at December 31, 2018 $ 13.1 Restructuring charges 4.2 Use of reserve (2.0 ) Non-cash adjustment (1) (0.7 ) Balance at March 31, 2019 $ 14.6 ( 1) This non-cash adjustment represents the non-cash stock-based compensation expense recognized during the three months ended March 31, 2019 resulting from the accelerated vesting of certain stock awards in connection with restructuring actions. As of March 31, 2019 and December 31, 2018 , the short-term portion of the liability of $4.8 million and $3.0 million , respectively, was reflected in "Accrued expenses and other liabilities" in the consolidated balance sheets. The long-term portion of the liability of $9.8 million and $10.1 million as of March 31, 2019 and December 31, 2018 , respectively, 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 first quarter of 2019, the Company completed a RIF and limited executive management restructuring actions. As a result of these actions, the Company incurred total severance and related costs of $5.5 million including $1.3 million of stock-based compensation resulting from the accelerated vesting of certain awards. Of the total severance and related costs incurred, $4.2 million was recognized in "Restructuring expense" in the consolidated statements of operations during the three months ended March 31, 2019 . The remaining $1.3 million will be recorded in the second quarter of 2019 due to continuing service requirements. 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 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 16. Accumulated Other Comprehensive Loss The components of "Accumulated other comprehensive loss" as of March 31, 2019 and December 31, 2018 are as follows: (in millions) March 31, 2019 December 31, 2018 Foreign currency translation, net of income tax benefit of $1.8 million and $2.1 million at March 31, 2019 and December 31, 2018, respectively $ (6.5 ) $ (6.5 ) Derivative instrument fair market value, net of income tax expense of $1.1 million and $1.3 million at March 31, 2019 and December 31, 2018, respectively (0.2 ) 0.8 Employee pension and postretirement benefit adjustments, net of income tax benefit of $6.2 million and $6.3 million at March 31, 2019 and December 31, 2018, respectively (37.1 ) (35.9 ) $ (43.8 ) $ (41.6 ) A summary of the changes in "Accumulated other comprehensive loss," net of tax, by component for the three months ended March 31, 2019 and 2018 are as follows: (in millions) Foreign Currency Translation (1) Gains and Losses on Cash Flow Hedges Pension & Postretirement Total Balance at December 31, 2018 $ (6.5 ) $ 0.8 $ (35.9 ) $ (41.6 ) Other comprehensive income (loss) before reclassifications 0.3 (0.5 ) (2.9 ) (3.1 ) Amounts reclassified out — (0.7 ) 1.8 1.1 Tax effect (0.3 ) 0.2 (0.1 ) (0.2 ) Net current period other comprehensive loss — (1.0 ) (1.2 ) (2.2 ) Balance at March 31, 2019 $ (6.5 ) $ (0.2 ) $ (37.1 ) $ (43.8 ) (1) Income taxes are not provided for foreign currency translation relating to indefinite 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. (in millions) Foreign Currency Translation (1) Gains and Losses on Cash Flow Hedges Pension & Postretirement Total Balance at December 31, 2017 $ 4.4 $ 3.6 $ (40.0 ) $ (32.0 ) Other comprehensive (loss) income before reclassifications (0.5 ) 3.3 — 2.8 Amounts reclassified out — (0.9 ) 0.6 (0.3 ) Tax effect 0.5 (0.4 ) (0.1 ) — Net current period other comprehensive income — 2.0 0.5 2.5 Balance at March 31, 2018 $ 4.4 $ 5.6 $ (39.5 ) $ (29.5 ) (1) Income taxes are not provided for foreign currency translation relating to indefinite 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 "Accumulated other comprehensive loss," net of tax, for the three months ended March 31, 2019 and 2018 : Three Months Ended March 31, (in millions) 2019 2018 Recognized Location Gains (losses) on cash flow hedges: Foreign currency exchange contracts $ (0.3 ) $ 0.5 Cost of sales Commodity contracts (0.1 ) 0.5 Cost of sales Interest expense 1.1 (0.1 ) Interest expense Total before tax 0.7 0.9 Tax effect 0.1 (0.3 ) Income taxes Net of tax $ 0.8 $ 0.6 Amortization of pension and postretirement items: Actuarial losses $ (0.6 ) $ (0.6 ) Note 14, "Employee Benefit Plans" Pension settlement (1.2 ) — Note 14, "Employee Benefit Plans" Total before tax (1.8 ) (0.6 ) Tax effect 0.1 0.2 Income taxes Net of tax $ (1.7 ) $ (0.4 ) Total reclassifications for the period $ (0.9 ) $ 0.2 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | 17. Leases The Company enters into contracts to lease real estate, manufacturing and office equipment and vehicles. The Company’s most significant lease liabilities relate to real estate leases that have remaining contract lease terms ranging from less than one year to 11 years . Operating leases result in a straight-line lease expense, while the accounting for finance leases result in a front-loaded expense pattern. The Company does not have any contracts where it is the lessor, does not sublease any of its leased assets to third parties, and is not party to any lease contracts with related parties. The Company’s lease agreements do not contain any residual value guarantees or restrictive covenants. As a lessee, the Company periodically reassesses and remeasures its leases based on certain triggering events or conditions, including whether a contract is or contains a lease, assessment of lease term and purchase options, measurement of lease payments, assessment of lease classification and assessment of the discount rate. Based on the Company's review for the three months ended March 31, 2019 , no events or conditions were identified that required a reassessment or remeasurement. In addition, there were no impairment indicators identified during the three months ended March 31, 2019 . The components of lease expense related to leases for the period are as follows: Three Months Ended March 31, (in millions) 2019 Operating lease expense $ 3.9 Finance lease expense: Depreciation of assets 0.3 Short-term lease expense 0.8 Variable lease expense 0.1 Total lease expense $ 5.1 The supplemental balance sheet information related to leases is as follows: (in millions, except lease term and discount rate) March 31, 2019 Operating leases: Operating lease right-of-use assets $ 35.7 Current operating lease liabilities $ 12.2 Non-current operating lease liabilities 22.1 Total operating lease liabilities $ 34.3 Finance leases: Property, plant and equipment — at cost $ 5.4 Accumulated depreciation (2.6 ) Property, plant and equipment — net $ 2.8 Current obligations of finance leases $ 1.1 Finance leases, net of current obligations 1.5 Total finance lease liabilities $ 2.6 Weighted average remaining lease term (in years): Operating leases 4.4 Finance leases 2.6 Weighted average discount rate: Operating leases 6.6 % Finance leases 4.4 % The assets associated with operating leases are included in "Operating lease right-of-use assets" with the current and non-current liabilities recognized in "Accrued expenses and other liabilities" and "Operating lease liabilities" in the consolidated balance sheet, respectively. The assets associated with finance leases are included in "Property, plant and equipment — net," with the current and non-current liabilities recognized in "Short-term borrowings and current portion of finance leases" and "Long-term debt and finance leases" in the consolidated balance sheet, respectively. The supplemental cash flow information related to leases for the period is as follows: Three Months Ended March 31, (in millions) 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3.7 Financing cash flows from financing leases 0.3 Right-of-use assets obtained in exchange for lease obligations: Operating Leases 0.8 Future minimum rental obligations under lease liabilities as of March 31, 2019 are as follows: (in millions) Operating Financing Year ending December 31: 2019 (excluding the three months ended March 31, 2019) $ 10.8 $ 0.9 2020 10.7 1.1 2021 6.9 0.5 2022 3.8 0.3 2023 1.5 — 2024 and thereafter 6.1 — Total lease payments 39.8 2.8 Less: imputed interest (5.5 ) (0.2 ) Total lease obligations $ 34.3 $ 2.6 The Company's future minimum lease commitments as of December 31, 2018, under Accounting Standard Codification Topic 840, the predecessor to ASC Topic 842, are as follows: (in millions) Operating Financing Year ending December 31: 2019 $ 15.1 $ 1.1 2020 10.8 0.9 2021 6.7 0.5 2022 3.6 0.3 2023 1.5 — Thereafter 5.9 — $ 43.6 $ 2.8 |
Leases | 17. Leases The Company enters into contracts to lease real estate, manufacturing and office equipment and vehicles. The Company’s most significant lease liabilities relate to real estate leases that have remaining contract lease terms ranging from less than one year to 11 years . Operating leases result in a straight-line lease expense, while the accounting for finance leases result in a front-loaded expense pattern. The Company does not have any contracts where it is the lessor, does not sublease any of its leased assets to third parties, and is not party to any lease contracts with related parties. The Company’s lease agreements do not contain any residual value guarantees or restrictive covenants. As a lessee, the Company periodically reassesses and remeasures its leases based on certain triggering events or conditions, including whether a contract is or contains a lease, assessment of lease term and purchase options, measurement of lease payments, assessment of lease classification and assessment of the discount rate. Based on the Company's review for the three months ended March 31, 2019 , no events or conditions were identified that required a reassessment or remeasurement. In addition, there were no impairment indicators identified during the three months ended March 31, 2019 . The components of lease expense related to leases for the period are as follows: Three Months Ended March 31, (in millions) 2019 Operating lease expense $ 3.9 Finance lease expense: Depreciation of assets 0.3 Short-term lease expense 0.8 Variable lease expense 0.1 Total lease expense $ 5.1 The supplemental balance sheet information related to leases is as follows: (in millions, except lease term and discount rate) March 31, 2019 Operating leases: Operating lease right-of-use assets $ 35.7 Current operating lease liabilities $ 12.2 Non-current operating lease liabilities 22.1 Total operating lease liabilities $ 34.3 Finance leases: Property, plant and equipment — at cost $ 5.4 Accumulated depreciation (2.6 ) Property, plant and equipment — net $ 2.8 Current obligations of finance leases $ 1.1 Finance leases, net of current obligations 1.5 Total finance lease liabilities $ 2.6 Weighted average remaining lease term (in years): Operating leases 4.4 Finance leases 2.6 Weighted average discount rate: Operating leases 6.6 % Finance leases 4.4 % The assets associated with operating leases are included in "Operating lease right-of-use assets" with the current and non-current liabilities recognized in "Accrued expenses and other liabilities" and "Operating lease liabilities" in the consolidated balance sheet, respectively. The assets associated with finance leases are included in "Property, plant and equipment — net," with the current and non-current liabilities recognized in "Short-term borrowings and current portion of finance leases" and "Long-term debt and finance leases" in the consolidated balance sheet, respectively. The supplemental cash flow information related to leases for the period is as follows: Three Months Ended March 31, (in millions) 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3.7 Financing cash flows from financing leases 0.3 Right-of-use assets obtained in exchange for lease obligations: Operating Leases 0.8 Future minimum rental obligations under lease liabilities as of March 31, 2019 are as follows: (in millions) Operating Financing Year ending December 31: 2019 (excluding the three months ended March 31, 2019) $ 10.8 $ 0.9 2020 10.7 1.1 2021 6.9 0.5 2022 3.8 0.3 2023 1.5 — 2024 and thereafter 6.1 — Total lease payments 39.8 2.8 Less: imputed interest (5.5 ) (0.2 ) Total lease obligations $ 34.3 $ 2.6 The Company's future minimum lease commitments as of December 31, 2018, under Accounting Standard Codification Topic 840, the predecessor to ASC Topic 842, are as follows: (in millions) Operating Financing Year ending December 31: 2019 $ 15.1 $ 1.1 2020 10.8 0.9 2021 6.7 0.5 2022 3.6 0.3 2023 1.5 — Thereafter 5.9 — $ 43.6 $ 2.8 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 18. 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 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. The following is a reconciliation of the weighted average shares outstanding used to compute basic and diluted earnings per share. Three Months Ended March 31, 2019 2018 Weighted average shares outstanding — Basic 140,612,213 139,708,723 Effect of dilutive securities: Stock options — 736,518 Unvested restricted stock — 390,226 Unvested performance share units — 135,076 Effect of dilutive securities — 1,261,820 Weighted average shares outstanding — Diluted 140,612,213 140,970,543 Dilutive securities outstanding that are not included in the computation of earnings per share because their effect was antidilutive were 1.9 million and 1.6 million for the three months ended March 31, 2019 and 2018 , respectively. The dilutive effect of common stock equivalents are not included in the calculation of diluted earnings per share for the three months ended March 31, 2019 |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Business Segments | 19. 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 (a non-GAAP measure) 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 and eliminations are not allocated to the segments. These unallocated expenses include corporate overhead, stock-based compensation expense and certain other non-operating expenses. 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 for the three months ended March 31, 2019 and 2018 , respectively, is as follows: Three Months Ended March 31, (in millions, except percentage data) 2019 2018 Net sales: Americas $ 275.1 $ 280.2 EMEA 106.7 81.0 APAC 54.8 43.5 Elimination of intersegment sales (61.3 ) (54.3 ) Total net sales $ 375.3 $ 350.4 Segment Adjusted Operating EBITDA: Americas $ 40.8 $ 47.6 EMEA 18.3 14.1 APAC 7.9 5.5 Total Segment Adjusted Operating EBITDA 67.0 67.2 Corporate and unallocated (16.9 ) (11.9 ) Amortization expense (9.5 ) (7.9 ) Depreciation expense (4.9 ) (4.2 ) Transaction costs (1) (0.4 ) (1.2 ) Other items (2) (6.6 ) — Separation expense (3) — (0.1 ) Restructuring expense (4.2 ) (0.4 ) Gain from disposal of assets — net — 0.1 Earnings from operations 24.5 41.6 Interest expense (24.0 ) (20.3 ) Other expense — net (3.0 ) (8.5 ) (Loss) earnings before income taxes $ (2.5 ) $ 12.8 (1) Transaction costs are associated with acquisition and integrated-related activity. These costs include $0.2 million related to inventory fair value purchase accounting adjustments recorded in "Cost of sales" for the three months ended March 31, 2019 and $0.2 million and $1.2 million of professional services and other direct acquisition and integration costs recorded in "Selling, general and administrative expenses" for the three months ended March 31, 2019 and 2018, respectively. (2) Other items are costs, which are not representative of the Company's operational performance. For the three months ended March 31, 2019, these costs include $5.8 million of consultant costs for the Transformation Program and other professional fees of $0.8 million. Each of these costs have been recorded in "Selling, general and administrative expenses" for the three months ended March 31, 2019. (3) Separation expense is included within "Selling, general and administrative expenses" for the three months ended March 31, 2018. Adjusted Operating EBITDA % by segment (4) : Americas 14.8 % 17.0 % EMEA 17.2 % 17.4 % APAC 14.4 % 12.6 % (4) Adjusted Operating EBITDA % in the section above is calculated by dividing Adjusted Operating EBITDA by net sales for each respective segment. Net sales by geographic area (5) : United States $ 225.0 $ 223.4 Other Americas 20.3 28.5 EMEA 88.6 62.1 APAC 41.4 36.4 Total net sales by geographic area $ 375.3 $ 350.4 (5) Net sales in the section above are attributed to geographic regions based on location of customer. Net sales by product class and segment for the three months ended March 31, 2019 and 2018 are as follows: Three Months Ended March 31, 2019 (in millions) Commercial Foodservice Whole Goods Aftermarket Parts and Support Total Americas $ 202.6 $ 38.2 $ 240.8 EMEA 77.5 13.4 90.9 APAC 36.0 7.6 43.6 Total net sales $ 316.1 $ 59.2 $ 375.3 Three Months Ended March 31, 2018 (in millions) Commercial Foodservice Whole Goods Aftermarket Parts and Support Total Americas $ 209.1 $ 40.9 $ 250.0 EMEA 51.7 12.4 64.1 APAC 29.2 7.1 36.3 Total net sales $ 290.0 $ 60.4 $ 350.4 As of March 31, 2019 and December 31, 2018 , total assets by reportable segment are as follows: (in millions) March 31, 2019 December 31, 2018 Total assets by segment: Americas $ 1,572.4 $ 1,437.3 EMEA 380.3 324.2 APAC 186.3 169.0 Corporate 53.3 144.5 Total assets $ 2,192.3 $ 2,075.0 |
Revision of Previously Issued C
Revision of Previously Issued Consolidated Financial Statements | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Revision of Previously Issued Consolidated Financial Statements | The following table summarizes the effects these corrections had on the Company’s unaudited consolidated statement 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 The following table summarizes the effects these corrections had on the Company's unaudited consolidated statement 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 The following table summarizes the effects these corrections had on the Company's unaudited consolidated statement of equity 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 Other comprehensive income 2.6 (0.1 ) 2.5 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 The following table summarizes the effects these error corrections had on the Company's unaudited consolidated statement 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 |
Subsidiary Guarantors of Senior
Subsidiary Guarantors of Senior Notes | 3 Months Ended |
Mar. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Subsidiary Guarantors of Senior Notes | 21. 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. The Company identified errors in its previously issued unaudited consolidated financial statements as described in Note 20, "Revision of Previously Issued Consolidated Financial Statements," Consolidating Statement of Operations (Unaudited) Three Months Ended March 31, 2019 (in millions) Parent Guarantor Non- Eliminations Consolidated Net sales $ — $ 247.2 $ 231.0 $ (102.9 ) $ 375.3 Cost of sales 1.0 188.6 162.1 (102.9 ) 248.8 Gross profit (1.0 ) 58.6 68.9 — 126.5 Selling, general and administrative expenses 17.1 39.1 32.1 — 88.3 Amortization expense — 7.1 2.4 — 9.5 Restructuring expense 1.5 1.3 1.4 — 4.2 (Loss) earnings from operations (19.6 ) 11.1 33.0 — 24.5 Interest expense 21.8 0.2 2.0 — 24.0 Other (income) expense — net (6.4 ) (0.7 ) 10.1 — 3.0 Equity in earnings (loss) of subsidiaries 23.6 15.1 — (38.7 ) — (Loss) earnings before income taxes (11.4 ) 26.7 20.9 (38.7 ) (2.5 ) Income taxes (8.8 ) 3.1 5.8 — 0.1 Net (loss) earnings $ (2.6 ) $ 23.6 $ 15.1 $ (38.7 ) $ (2.6 ) Total other comprehensive (loss) income, net of tax (2.2 ) (30.5 ) (28.5 ) 59.0 (2.2 ) Comprehensive (loss) income $ (4.8 ) $ (6.9 ) $ (13.4 ) $ 20.3 $ (4.8 ) WELBILT, INC. Consolidating Statement of Operations (Unaudited) Three Months Ended March 31, 2018 (in millions) Parent Guarantor Non- Eliminations Consolidated Net sales $ — $ 252.1 $ 204.2 $ (105.9 ) $ 350.4 Cost of sales 0.8 191.4 137.9 (105.9 ) 224.2 Gross profit (0.8 ) 60.7 66.3 — 126.2 Selling, general and administrative expenses 9.0 37.6 29.8 — 76.4 Amortization expense — 7.1 0.8 — 7.9 Restructuring expense — (0.1 ) 0.5 — 0.4 Gain from disposal of assets — net — (0.1 ) — — (0.1 ) (Loss) earnings from operations (9.8 ) 16.2 35.2 — 41.6 Interest expense 19.1 0.3 0.9 — 20.3 Other (income) expense — net (3.6 ) (2.9 ) 15.0 — 8.5 Equity in earnings (loss) of subsidiaries 26.7 13.2 — (39.9 ) — Earnings (loss) before income taxes 1.4 32.0 19.3 (39.9 ) 12.8 Income taxes (benefit) expense (11.0 ) 5.3 6.1 — 0.4 Net earnings (loss) $ 12.4 $ 26.7 $ 13.2 $ (39.9 ) $ 12.4 Total other comprehensive income (loss), net of tax 2.5 0.7 1.4 (2.1 ) 2.5 Comprehensive income (loss) $ 14.9 $ 27.4 $ 14.6 $ (42.0 ) $ 14.9 Consolidating Balance Sheet (Unaudited) March 31, 2019 (in millions) Parent Guarantor Non- Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 2.2 $ — $ 55.3 $ (2.2 ) $ 55.3 Short-term investment — — 32.8 — 32.8 Accounts receivable — net — 98.2 114.6 — 212.8 Inventories — net — 111.1 94.6 — 205.7 Prepaids and other current assets 14.8 5.3 14.3 — 34.4 Total current assets 17.0 214.6 311.6 (2.2 ) 541.0 Property, plant and equipment — net 7.6 67.8 43.9 — 119.3 Operating lease right-of-use assets — 6.3 29.4 — 35.7 Goodwill — 832.4 101.2 — 933.6 Other intangible assets — net — 363.6 170.2 — 533.8 Intercompany long-term note receivable 20.0 10.1 9.9 (40.0 ) — Due from affiliates — 3,285.6 — (3,285.6 ) — Investment in subsidiaries 4,222.5 — — (4,222.5 ) — Other non-current assets 6.2 4.4 18.3 — 28.9 Total assets $ 4,273.3 $ 4,784.8 $ 684.5 $ (7,550.3 ) $ 2,192.3 Liabilities and equity Current liabilities: Accounts payable $ 0.2 $ 63.0 $ 63.9 $ (2.2 ) $ 124.9 Accrued expenses and other liabilities 21.8 71.8 61.7 — 155.3 Short-term borrowings and current portion of finance leases — 0.9 0.3 — 1.2 Product warranties — 19.0 10.7 — 29.7 Total current liabilities 22.0 154.7 136.6 (2.2 ) 311.1 Long-term debt and finance leases 1,417.0 1.0 75.4 — 1,493.4 Deferred income taxes 59.8 — 43.6 — 103.4 Pension and postretirement health obligations 16.0 9.8 14.0 — 39.8 Intercompany long-term note payable 15.7 — 24.3 (40.0 ) — Due to affiliates 2,549.3 — 736.3 (3,285.6 ) — Investment in subsidiaries — 373.1 — (373.1 ) — Operating lease liabilities — 3.0 19.1 — 22.1 Other long-term liabilities 8.2 20.7 8.3 — 37.2 Total non-current liabilities 4,066.0 407.6 921.0 (3,698.7 ) 1,695.9 Total equity (deficit): Total equity (deficit) 185.3 4,222.5 (373.1 ) (3,849.4 ) 185.3 Total liabilities and equity $ 4,273.3 $ 4,784.8 $ 684.5 $ (7,550.3 ) $ 2,192.3 WELBILT, INC. Consolidating Balance Sheet (Audited) December 31, 2018 (in millions) Parent Guarantor Non- Eliminations 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 and current portion of finance leases — 0.9 15.2 — 16.1 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 finance 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 Consolidating Statement of Cash Flows (Unaudited) Three Months Ended March 31, 2019 (in millions) Parent Guarantor Non- Eliminations Consolidated Cash flows from operating activities Net cash used in operating activities $ (59.1 ) $ (142.0 ) $ (153.7 ) $ (2.2 ) $ (357.0 ) Cash flows from investing activities Cash receipts on beneficial interest in sold receivables — 35.6 160.4 — 196.0 Capital expenditures (1.7 ) (2.4 ) (0.7 ) — (4.8 ) Intercompany investment — 109.4 (9.2 ) (100.2 ) — Other 0.2 — — — 0.2 Net cash (used in) provided by investing activities (1.5 ) 142.6 150.5 (100.2 ) 191.4 Cash flows from financing activities Proceeds from long-term debt 196.5 — — — 196.5 Repayments on long-term debt and finance leases (32.5 ) (0.3 ) — — (32.8 ) Repayment of short-term borrowings — — (15.0 ) — (15.0 ) Payment of contingent consideration — (0.8 ) — — (0.8 ) Exercises of stock options 0.6 — — — 0.6 Payments on tax withholdings for equity awards (1.8 ) — — — (1.8 ) Intercompany financing (100.2 ) — — 100.2 — Net cash provided by (used in) financing activities 62.6 (1.1 ) (15.0 ) 100.2 146.7 Effect of exchange rate changes on cash — — 1.0 — 1.0 Net increase (decrease) in cash and cash equivalents and restricted cash 2.0 (0.5 ) (17.2 ) (2.2 ) (17.9 ) Balance at beginning of period 0.2 0.5 72.5 — 73.2 Balance at end of period $ 2.2 $ — $ 55.3 $ (2.2 ) $ 55.3 WELBILT, INC. Consolidating Statement of Cash Flows (Unaudited) Three Months Ended March 31, 2018 (in millions) Parent Guarantor Non- Eliminations Consolidated Cash flows from operating activities Net cash (used in) provided by operating activities $ (19.0 ) $ (8.0 ) $ (132.4 ) $ 0.7 $ (158.7 ) Cash flows from investing activities Cash receipts on beneficial interest in sold receivables — — 127.9 — 127.9 Capital expenditures (0.1 ) (2.1 ) (1.5 ) — (3.7 ) Purchase of short-term investment — — (35.0 ) — (35.0 ) Proceeds from maturity of short-term investment — — 20.7 — 20.7 Intercompany investment — 10.2 24.6 (34.8 ) — Other 0.3 — — — 0.3 Net cash provided by (used in) investing activities 0.2 8.1 136.7 (34.8 ) 110.2 Cash flows from financing activities Proceeds from long-term debt 74.0 — — — 74.0 Repayments on long-term debt and finance leases (19.0 ) (0.1 ) (0.1 ) — (19.2 ) Debt issuance costs (0.1 ) — — — (0.1 ) Exercises of stock options 2.5 — — — 2.5 Payments on tax withholdings for equity awards (2.0 ) — — — (2.0 ) Intercompany financing (34.8 ) — — 34.8 — Net cash provided by (used in) financing activities 20.6 (0.1 ) (0.1 ) 34.8 55.2 Effect of exchange rate changes on cash — — 3.6 — 3.6 Net increase in cash and cash equivalents and restricted cash 1.8 — 7.8 0.7 10.3 Balance at beginning of period 8.8 — 100.8 (0.8 ) 108.8 Balance at end of period $ 10.6 $ — $ 108.6 $ (0.1 ) $ 119.1 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | The accompanying unaudited 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 in consolidation. |
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. 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. |
Reclassifications and Revision of Previously Issued Consolidated Financial Statements | Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation and include: • Reclassification of the current portion of capital leases totaling $1.1 million from "Current portion of capital leases" to "Short-term borrowings and current portion of finance leases" in the consolidated balance sheet for the period ended December 31, 2018 as a result of the adoption of ASU 2016-02, "Leases (Topic 842)." • Reclassification of separation expense for the three months ended March 31, 2018 totaling $0.1 million from "Separation expense" to "Selling, general and administrative expenses." Revision of Previously Issued Consolidated Financial Statements As previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 , the Company identified certain errors in its previously issued unaudited consolidated financial statements. The Company assessed the materiality of the errors on all prior period financial statements and concluded they were not material to any prior annual or interim periods. The Company corrected these errors by revising its unaudited interim financial information for the three months ended March 31, 2018 to correct for the impact of such errors. Refer to Note 20, "Revision of Previously Issued Consolidated Financial Statements," for additional discussion of the errors and related error corrections on the unaudited quarterly financial statements. The Company will revise its unaudited financial statements for the 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 and six months ended June 30, 2019 and the three and nine months ended September 30, 2019, respectively. |
Recently Adopted and Not Yet Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements 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 ("LIBOR") 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. This standard became effective for the Company on January 1, 2019. The adoption of this standard did not have an impact on the Company's consolidated financial statements. 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 U.S. Tax Cuts and Jobs Act’s ("the Tax Act") reduction in the corporate statutory tax rate . ASU 2018-02 provides the option of reclassifying what are called the “stranded” tax effects within accumulated other comprehensive income (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 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 Act related to items remaining in accumulated other comprehensive income (loss) are recognized, or (2) at the beginning of the period of adoption. The Company adopted this standard effective January 1, 2019 and elected not to reclassify the "stranded" income tax effects from accumulated other comprehensive loss ("AOCI") to retained earnings. Future income tax effects that are stranded in AOCI will be released using an investment-by-investment approach. 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 GAAP. The standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. This standard became effective for the Company on January 1, 2019. The Company adopted this standard on a modified retrospective basis and it did not have a material impact on the Company's consolidated financial statements. 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. This standard became effective for the Company on January 1, 2019. The adoption of this standard did not have an impact on the Company's consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)" including subsequent amendments issued thereafter which include ASU 2018-10 "Codification Improvements to Topic 842, Leases," ASU 2018-11 "Leases (Topic 842) Targeted Improvements" and ASU 2019-01 "Leases (Topic 842) Codification Improvements" (collectively, "ASC Topic 842"). ASC Topic 842 requires lessees to recognize the right-of-use assets and lease liabilities on its balance sheet. Accounting for finance leases is substantially unchanged. This standard became effective for the Company on January 1, 2019. 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 used the modified retrospective method and recognized the cumulative effect of the initial application of ASC Topic 842 as an adjustment to the opening balance of retained earnings. The adjustment is principally driven by the recognition of remaining deferred gain associated with a previous sale-leaseback transaction. Prior to the adoption of ASU 2016-02, gains on sale leaseback transactions were generally deferred and recognized in the income statement over the lease term. Prior period results have not been adjusted and continue to be reported under the accounting standards in effect for such period. Upon adoption, the Company recognized right-of-use assets and lease liabilities for operating leases in the amount of $38.0 million and $36.6 million , respectively, with the difference reflective of a reclassification of existing prepaid expense balances to the right-of-use asset. In connection with the adoption of this guidance, the Company elected the package of practical expedients available in the standard and as a result, did not reassess the lease classification of existing contracts or leases or the initial direct costs associated with existing leases and has made an accounting policy election not to recognize right-of-use assets and lease liabilities for leases with a lease term of 12 months or less, including renewal options that are reasonably certain to be exercised, that also do not include an option to purchase the underlying asset that is reasonably certain of exercise. Instead, lease payments for these leases are recognized as lease cost on a straight-line basis over the lease term. In addition, the Company did not elect the hindsight practical expedient and has elected not to separate the accounting for lease components and non-lease components, for all classes of leased assets. Certain of the Company’s leases include variable lease costs primarily comprising reimbursement to the lessor for taxes and insurance expenses, and certain non-lease components that transfer a distinct service to the Company, such as maintenance services and usage charges. These variable lease costs are determined based upon the terms of each respective lease contract. Under ASC Topic 842, a lease is a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment (i.e., an identified asset) for a period of time in exchange for consideration. The Company determines if an arrangement is a lease at inception. The Company’s contracts determined to be or contain a lease include explicitly or implicitly identified assets where the Company has the right to substantially all of the economic benefits of the assets and has the ability to direct how and for what purpose the assets are used during the lease term. Leases are classified as either operating or financing. For operating leases, the Company has recognized a lease liability equal to the present value of the remaining lease payments, and a right-of-use asset equal to the lease liability, subject to certain adjustments, such as for prepaid rents. The Company uses its incremental borrowing rate to determine the present value of the lease payments. The Company’s incremental borrowing rate is the rate of interest that it would have to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. The Company determined the incremental borrowing rates for its leases by applying its applicable borrowing rate, with adjustment as appropriate for instruments with similar characteristics. The lease term at the lease commencement date is determined based on the non-cancellable period for which the Company has the right to use the underlying asset, together with any periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option, periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option, and periods covered by an option to extend (or not to terminate) the lease in which the exercise of the option is controlled by the lessor. The Company considered a number of factors when evaluating whether the options in its lease contracts were reasonably certain of exercise, such as length of time before option exercise, expected value of the leased asset at the end of the initial lease term, importance of the lease to overall operations, costs to negotiate a new lease, and any contractual or economic penalties. See additional discussion of leases in Note 17, "Leases." Recent Accounting Pronouncements Not Yet Adopted In April 2019, the FASB issued ASU 2019-04, "Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments" which provides narrow-scope amendments designed to assist in the application of ASU 2016-01, 2016-13 and 2017-12 and the relevant accounting standards. 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 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 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. |
Inventories - Net (Tables)
Inventories - Net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | The components of "Inventories — net" at March 31, 2019 and December 31, 2018 are summarized as follows: March 31, December 31, (in millions) 2019 2018 Inventories — gross: Raw materials $ 96.8 $ 90.4 Work-in-process 18.3 16.0 Finished goods 116.7 108.8 Total inventories — gross 231.8 215.2 Excess and obsolete inventory reserve (21.9 ) (20.4 ) Net inventories at FIFO cost 209.9 194.8 Excess of FIFO costs over LIFO value (4.2 ) (4.2 ) Inventories — net $ 205.7 $ 190.6 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Components of Property, Plant and Equipment | The components of "Property, plant and equipment — net" at March 31, 2019 and December 31, 2018 are summarized as follows: March 31, December 31, (in millions) 2019 2018 Land $ 9.6 $ 9.8 Building and improvements 89.0 88.5 Machinery, equipment and tooling 228.9 226.6 Furniture and fixtures 6.6 6.5 Computer hardware and software 59.1 58.3 Construction in progress 23.4 21.1 Total cost 416.6 410.8 Less accumulated depreciation (297.3 ) (291.8 ) Property, plant and equipment — net $ 119.3 $ 119.0 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses and Other Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Expenses | "Accounts payable" and "Accrued expenses and other liabilities" at March 31, 2019 and December 31, 2018 are summarized as follows: March 31, December 31, (in millions) 2019 2018 Accounts payable: Trade accounts payable $ 124.9 $ 151.0 Total accounts payable $ 124.9 $ 151.0 Accrued expenses and other liabilities: Interest payable $ 2.8 $ 2.2 Income taxes payable 0.8 10.2 Employee related expenses 29.4 30.0 Restructuring expenses 4.8 3.0 Profit sharing and incentives 6.4 19.9 Accrued rebates 33.5 50.8 Deferred revenue — current 2.6 2.7 Customer advances 3.5 3.1 Product liability 1.3 1.3 Derivative liability 10.7 18.4 Current portion of operating lease liabilities 12.2 — Miscellaneous accrued expenses 47.3 42.1 Total accrued expenses and other liabilities $ 155.3 $ 183.7 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | Outstanding debt at March 31, 2019 and December 31, 2018 is summarized as follows: (in millions, except percentage data) March 31, 2019 Weighted Average Interest Rate December 31, 2018 Weighted Average Interest Rate Revolving loan facility $ — 4.35 % $ 15.0 4.06 % Revolving credit facility 242.0 5.18 % 78.0 4.70 % Term Loan B facility 855.0 5.43 % 855.0 5.22 % 9.50% Senior Notes due 2024 425.0 9.87 % 425.0 9.72 % Finance leases 2.6 4.47 % 2.8 4.50 % Total debt and finance leases, including current portion 1,524.6 1,375.8 Less: Revolving loan facility — (15.0 ) Current portion of finance leases (1.1 ) (1.1 ) Unamortized debt issuance costs (1) (23.3 ) (24.2 ) Hedge accounting fair value adjustment (2) (6.8 ) (13.7 ) Total long-term debt and finance leases $ 1,493.4 $ 1,321.8 (1) Total outstanding debt issuance costs, net of amortization as of March 31, 2019 and December 31, 2018 was $26.4 million and $27.3 million , respectively, of which $3.1 million was related to the revolving credit facility and recorded in "Other non-current assets" in the consolidated balance sheets, for both periods respectively. (2) Represents the change in fair value due to changes in benchmark interest rates related to the Company's Senior Notes due 2024 ("Senior Notes"). Refer to Note 10, "Derivative Financial Instruments," |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Outstanding Commodity and Currency Forward Contracts | As of March 31, 2019 , and December 31, 2018 , the Company had the following outstanding commodity and currency forward contracts that were entered into as hedges of forecasted transactions: Units Hedged Commodity March 31, 2019 December 31, 2018 Unit Aluminum 1,302 1,446 MT Copper 562 546 MT Steel 7,223 7,080 Short tons Units Hedged Currency March 31, 2019 December 31, 2018 Canadian Dollar 22,543,000 10,990,000 European Euro 19,190,500 9,878,000 British Pound 12,804,498 12,041,770 Mexican Peso 255,955,000 175,960,000 Singapore Dollar 2,128,000 1,480,000 March 31, 2019 and December 31, 2018 , the Company had the following outstanding currency forward contracts that were not designated as hedging instruments: Units Hedged Currency March 31, 2019 December 31, 2018 Singapore Dollar 28,272,000 28,447,000 European Euro 67,300,000 69,700,000 British Pound 34,292,568 23,704,468 Swiss Franc 5,300,000 5,300,000 |
Schedule of the Effect of Derivative Instruments on the Consolidated Statements of Comprehensive Income and the Consolidated Statements of Operations | The location and effects of the derivative instrument on the consolidated statements of comprehensive income and consolidated statements of operations for the three months ended March 31, 2019 and 2018 were as follows: Derivatives in net investment hedging relationships (in millions) Pretax gain/(loss) recognized in AOCI Gain/(loss) reclassified from AOCI into income Gain/(loss) recognized in income (amount excluded from effectiveness testing) Three Months Ended March 31, Location Three Months Ended March 31, Location Three Months Ended March 31, 2019 2018 2019 2018 2019 2018 Interest rate swap contract $ 1.6 $ (1.7 ) N/A $ — $ — Other expense — net $ 0.4 $ — Total $ 1.6 $ (1.7 ) $ — $ — $ 0.4 $ — N/A = Not applicable three months ended March 31, 2019 and 2018 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 Three Months Ended March 31, 2019 2018 Foreign currency exchange contracts $ 2.8 $ (12.9 ) Other expense — net Total $ 2.8 $ (12.9 ) three months ended March 31, 2019 and 2018 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 Pretax gain/(loss) reclassified from AOCI into income Three Months Ended March 31, Location Three Months Ended March 31, 2019 2018 2019 2018 Foreign currency exchange contracts $ (0.1 ) $ 0.8 Cost of sales $ (0.3 ) $ 0.5 Commodity contracts 0.2 (0.5 ) Cost of sales (0.1 ) 0.5 Interest rate swap contracts (0.6 ) 3.0 Interest expense 1.1 (0.1 ) Total $ (0.5 ) $ 3.3 $ 0.7 $ 0.9 |
Schedule of Fair Value Hedges | As of March 31, 2019 and December 31, 2018 , the following amounts were recorded on the consolidated balance sheets related to cumulative basis adjustments for the fair value hedge: Line item in the consolidated balance sheets in which the hedged item is included (in millions) Carrying amount of the hedged liability Cumulative amount of fair value hedge adjustment included in the carrying amount of the hedged liability (1) March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 Long-term debt and finance leases $ 418.2 $ 411.3 $ (6.8 ) $ (13.7 ) Total $ 418.2 $ 411.3 $ (6.8 ) $ (13.7 ) (1) The balance as of March 31, 2019 and December 31, 2018 includes $0.2 million and $0.3 million of hedging adjustment on a discontinued hedge relationship, respectively. |
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 March 31, 2019 and December 31, 2018 was as follows: Asset Derivatives Fair Value (in millions) Balance Sheet Location March 31, 2019 December 31, 2018 Derivatives designated as hedging instruments: Foreign currency exchange contracts Prepaids and other current assets $ 0.4 $ 0.5 Commodity contracts Prepaids and other current assets 0.2 0.2 Interest rate swap contracts Prepaids and other current assets 2.6 4.8 Interest rate swap contracts Other non-current assets — 3.4 Total derivatives designated as hedging instruments $ 3.2 $ 8.9 Derivatives NOT designated as hedging instruments: Foreign currency exchange contracts Prepaids and other current assets $ 1.1 $ 0.1 Total derivatives NOT designated as hedging instruments $ 1.1 $ 0.1 Total asset derivatives $ 4.3 $ 9.0 |
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 March 31, 2019 and December 31, 2018 was as follows: Liability Derivatives Fair Value (in millions) Balance Sheet Location March 31, 2019 December 31, 2018 Derivatives designated as hedging instruments: Foreign currency exchange contracts Accrued expenses and other liabilities $ 1.1 $ 1.5 Commodity contracts Accrued expenses and other liabilities 0.8 0.9 Interest rate swap contracts Accrued expenses and other liabilities 8.8 15.7 Commodity contracts Other long-term liabilities 0.1 0.4 Interest rate swap contracts Other long-term liabilities 1.1 5.9 Total derivatives designated as hedging instruments $ 11.9 $ 24.4 Derivatives NOT designated as hedging instruments: Foreign currency exchange contracts Accrued expenses and other liabilities $ — $ 0.3 Total derivatives NOT designated as hedging instruments $ — $ 0.3 Total liability derivatives $ 11.9 $ 24.7 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [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 March 31, 2019 and December 31, 2018 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 March 31, 2019 (in millions) Level 1 Level 2 Level 3 Total Current assets: Short-term investment $ — $ 32.8 $ — $ 32.8 Foreign currency exchange contracts — 1.5 — 1.5 Commodity contracts — 0.2 — 0.2 Interest rate swap contracts — 2.6 — 2.6 Total current assets at fair value — 37.1 — 37.1 Total assets at fair value $ — $ 37.1 $ — $ 37.1 Current liabilities: Foreign currency exchange contracts $ — $ 1.1 $ — $ 1.1 Commodity contracts — 0.8 — 0.8 Interest rate swap contracts — 8.8 — 8.8 Total current liabilities at fair value — 10.7 — 10.7 Non-current liabilities: Commodity contracts — 0.1 — 0.1 Interest rate swap contracts — 1.1 — 1.1 Total non-current liabilities at fair value — 1.2 — 1.2 Total liabilities at fair value $ — $ 11.9 $ — $ 11.9 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 |
Product Warranties (Tables)
Product Warranties (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Guarantees and Product Warranties [Abstract] | |
Schedule of the Summary of Product Warranty Activity | Below is a table summarizing the product warranty activity for the three months ended March 31, 2019 : (in millions) Balance at December 31, 2018 (1) $ 39.7 Accruals for warranties issued 8.7 Settlements made (in cash or in kind) (8.9 ) Currency translation impact 0.2 Balance at March 31, 2019 (1) $ 39.7 (1) Long-term warranty liabilities are included in "Other long-term liabilities" and totaled $10.0 million and $11.8 million at March 31, 2019 and December 31, 2018 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Period Benefit Costs | The components of periodic benefit costs for the defined benefit plans for the three months ended March 31, 2019 and 2018 were as follows: Three Months Ended March 31, 2019 2018 (in millions) Pension Plans Postretirement Pension Plans Postretirement Interest cost of projected benefit obligations $ 1.3 $ 0.1 $ 1.3 $ 0.1 Expected return on assets (1.2 ) — (1.5 ) — Amortization of actuarial net loss 0.5 0.1 0.6 — Settlement loss recognized 1.2 — — — Net periodic benefit cost $ 1.8 $ 0.2 $ 0.4 $ 0.1 |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Rollforward of all Restructuring Activities | The following is a rollforward of all restructuring activities for the three months ended March 31, 2019 : (in millions) Balance at December 31, 2018 $ 13.1 Restructuring charges 4.2 Use of reserve (2.0 ) Non-cash adjustment (1) (0.7 ) Balance at March 31, 2019 $ 14.6 ( 1) This non-cash adjustment represents the non-cash stock-based compensation expense recognized during the three months ended March 31, 2019 resulting from the accelerated vesting of certain stock awards in connection with restructuring actions. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Reconciliations for the Changes in Accumulated Other Comprehensive Loss | A summary of the changes in "Accumulated other comprehensive loss," net of tax, by component for the three months ended March 31, 2019 and 2018 are as follows: (in millions) Foreign Currency Translation (1) Gains and Losses on Cash Flow Hedges Pension & Postretirement Total Balance at December 31, 2018 $ (6.5 ) $ 0.8 $ (35.9 ) $ (41.6 ) Other comprehensive income (loss) before reclassifications 0.3 (0.5 ) (2.9 ) (3.1 ) Amounts reclassified out — (0.7 ) 1.8 1.1 Tax effect (0.3 ) 0.2 (0.1 ) (0.2 ) Net current period other comprehensive loss — (1.0 ) (1.2 ) (2.2 ) Balance at March 31, 2019 $ (6.5 ) $ (0.2 ) $ (37.1 ) $ (43.8 ) (1) Income taxes are not provided for foreign currency translation relating to indefinite 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. (in millions) Foreign Currency Translation (1) Gains and Losses on Cash Flow Hedges Pension & Postretirement Total Balance at December 31, 2017 $ 4.4 $ 3.6 $ (40.0 ) $ (32.0 ) Other comprehensive (loss) income before reclassifications (0.5 ) 3.3 — 2.8 Amounts reclassified out — (0.9 ) 0.6 (0.3 ) Tax effect 0.5 (0.4 ) (0.1 ) — Net current period other comprehensive income — 2.0 0.5 2.5 Balance at March 31, 2018 $ 4.4 $ 5.6 $ (39.5 ) $ (29.5 ) (1) March 31, 2019 and December 31, 2018 are as follows: (in millions) March 31, 2019 December 31, 2018 Foreign currency translation, net of income tax benefit of $1.8 million and $2.1 million at March 31, 2019 and December 31, 2018, respectively $ (6.5 ) $ (6.5 ) Derivative instrument fair market value, net of income tax expense of $1.1 million and $1.3 million at March 31, 2019 and December 31, 2018, respectively (0.2 ) 0.8 Employee pension and postretirement benefit adjustments, net of income tax benefit of $6.2 million and $6.3 million at March 31, 2019 and December 31, 2018, respectively (37.1 ) (35.9 ) $ (43.8 ) $ (41.6 ) |
Reclassification out of Accumulated Other Comprehensive Loss | A reconciliation of the reclassifications out of "Accumulated other comprehensive loss," net of tax, for the three months ended March 31, 2019 and 2018 : Three Months Ended March 31, (in millions) 2019 2018 Recognized Location Gains (losses) on cash flow hedges: Foreign currency exchange contracts $ (0.3 ) $ 0.5 Cost of sales Commodity contracts (0.1 ) 0.5 Cost of sales Interest expense 1.1 (0.1 ) Interest expense Total before tax 0.7 0.9 Tax effect 0.1 (0.3 ) Income taxes Net of tax $ 0.8 $ 0.6 Amortization of pension and postretirement items: Actuarial losses $ (0.6 ) $ (0.6 ) Note 14, "Employee Benefit Plans" Pension settlement (1.2 ) — Note 14, "Employee Benefit Plans" Total before tax (1.8 ) (0.6 ) Tax effect 0.1 0.2 Income taxes Net of tax $ (1.7 ) $ (0.4 ) Total reclassifications for the period $ (0.9 ) $ 0.2 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense related to leases for the period are as follows: Three Months Ended March 31, (in millions) 2019 Operating lease expense $ 3.9 Finance lease expense: Depreciation of assets 0.3 Short-term lease expense 0.8 Variable lease expense 0.1 Total lease expense $ 5.1 |
Supplemental Balance Sheet Information | he supplemental balance sheet information related to leases is as follows: (in millions, except lease term and discount rate) March 31, 2019 Operating leases: Operating lease right-of-use assets $ 35.7 Current operating lease liabilities $ 12.2 Non-current operating lease liabilities 22.1 Total operating lease liabilities $ 34.3 Finance leases: Property, plant and equipment — at cost $ 5.4 Accumulated depreciation (2.6 ) Property, plant and equipment — net $ 2.8 Current obligations of finance leases $ 1.1 Finance leases, net of current obligations 1.5 Total finance lease liabilities $ 2.6 Weighted average remaining lease term (in years): Operating leases 4.4 Finance leases 2.6 Weighted average discount rate: Operating leases 6.6 % Finance leases 4.4 % |
Supplemental Cash Flow Information | The supplemental cash flow information related to leases for the period is as follows: Three Months Ended March 31, (in millions) 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3.7 Financing cash flows from financing leases 0.3 Right-of-use assets obtained in exchange for lease obligations: Operating Leases 0.8 |
Future Minimum Rental Obligations Under Operating Lease Liabilities | Future minimum rental obligations under lease liabilities as of March 31, 2019 are as follows: (in millions) Operating Financing Year ending December 31: 2019 (excluding the three months ended March 31, 2019) $ 10.8 $ 0.9 2020 10.7 1.1 2021 6.9 0.5 2022 3.8 0.3 2023 1.5 — 2024 and thereafter 6.1 — Total lease payments 39.8 2.8 Less: imputed interest (5.5 ) (0.2 ) Total lease obligations $ 34.3 $ 2.6 |
Future Minimum Rental Obligations Under Financing Lease Liabilities | Future minimum rental obligations under lease liabilities as of March 31, 2019 are as follows: (in millions) Operating Financing Year ending December 31: 2019 (excluding the three months ended March 31, 2019) $ 10.8 $ 0.9 2020 10.7 1.1 2021 6.9 0.5 2022 3.8 0.3 2023 1.5 — 2024 and thereafter 6.1 — Total lease payments 39.8 2.8 Less: imputed interest (5.5 ) (0.2 ) Total lease obligations $ 34.3 $ 2.6 |
Future Minimum Lease Commitments Under Operating Leases | The Company's future minimum lease commitments as of December 31, 2018, under Accounting Standard Codification Topic 840, the predecessor to ASC Topic 842, are as follows: (in millions) Operating Financing Year ending December 31: 2019 $ 15.1 $ 1.1 2020 10.8 0.9 2021 6.7 0.5 2022 3.6 0.3 2023 1.5 — Thereafter 5.9 — $ 43.6 $ 2.8 |
Future Minimum Lease Commitments Under Financing Leases | The Company's future minimum lease commitments as of December 31, 2018, under Accounting Standard Codification Topic 840, the predecessor to ASC Topic 842, are as follows: (in millions) Operating Financing Year ending December 31: 2019 $ 15.1 $ 1.1 2020 10.8 0.9 2021 6.7 0.5 2022 3.6 0.3 2023 1.5 — Thereafter 5.9 — $ 43.6 $ 2.8 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of the Weighted Average Shares Outstanding Used to Compute Basic and Diluted Earnings per Share | The following is a reconciliation of the weighted average shares outstanding used to compute basic and diluted earnings per share. Three Months Ended March 31, 2019 2018 Weighted average shares outstanding — Basic 140,612,213 139,708,723 Effect of dilutive securities: Stock options — 736,518 Unvested restricted stock — 390,226 Unvested performance share units — 135,076 Effect of dilutive securities — 1,261,820 Weighted average shares outstanding — Diluted 140,612,213 140,970,543 |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information Relating to the Company's Reportable Segments | Financial information relating to the Company's reportable segments for the three months ended March 31, 2019 and 2018 , respectively, is as follows: Three Months Ended March 31, (in millions, except percentage data) 2019 2018 Net sales: Americas $ 275.1 $ 280.2 EMEA 106.7 81.0 APAC 54.8 43.5 Elimination of intersegment sales (61.3 ) (54.3 ) Total net sales $ 375.3 $ 350.4 Segment Adjusted Operating EBITDA: Americas $ 40.8 $ 47.6 EMEA 18.3 14.1 APAC 7.9 5.5 Total Segment Adjusted Operating EBITDA 67.0 67.2 Corporate and unallocated (16.9 ) (11.9 ) Amortization expense (9.5 ) (7.9 ) Depreciation expense (4.9 ) (4.2 ) Transaction costs (1) (0.4 ) (1.2 ) Other items (2) (6.6 ) — Separation expense (3) — (0.1 ) Restructuring expense (4.2 ) (0.4 ) Gain from disposal of assets — net — 0.1 Earnings from operations 24.5 41.6 Interest expense (24.0 ) (20.3 ) Other expense — net (3.0 ) (8.5 ) (Loss) earnings before income taxes $ (2.5 ) $ 12.8 (1) Transaction costs are associated with acquisition and integrated-related activity. These costs include $0.2 million related to inventory fair value purchase accounting adjustments recorded in "Cost of sales" for the three months ended March 31, 2019 and $0.2 million and $1.2 million of professional services and other direct acquisition and integration costs recorded in "Selling, general and administrative expenses" for the three months ended March 31, 2019 and 2018, respectively. (2) Other items are costs, which are not representative of the Company's operational performance. For the three months ended March 31, 2019, these costs include $5.8 million of consultant costs for the Transformation Program and other professional fees of $0.8 million. Each of these costs have been recorded in "Selling, general and administrative expenses" for the three months ended March 31, 2019. (3) Separation expense is included within "Selling, general and administrative expenses" for the three months ended March 31, 2018. Adjusted Operating EBITDA % by segment (4) : Americas 14.8 % 17.0 % EMEA 17.2 % 17.4 % APAC 14.4 % 12.6 % (4) Adjusted Operating EBITDA % in the section above is calculated by dividing Adjusted Operating EBITDA by net sales for each respective segment. Net sales by geographic area (5) : United States $ 225.0 $ 223.4 Other Americas 20.3 28.5 EMEA 88.6 62.1 APAC 41.4 36.4 Total net sales by geographic area $ 375.3 $ 350.4 (5) Net sales in the section above are attributed to geographic regions based on location of customer. Net sales by product class and segment for the three months ended March 31, 2019 and 2018 are as follows: Three Months Ended March 31, 2019 (in millions) Commercial Foodservice Whole Goods Aftermarket Parts and Support Total Americas $ 202.6 $ 38.2 $ 240.8 EMEA 77.5 13.4 90.9 APAC 36.0 7.6 43.6 Total net sales $ 316.1 $ 59.2 $ 375.3 Three Months Ended March 31, 2018 (in millions) Commercial Foodservice Whole Goods Aftermarket Parts and Support Total Americas $ 209.1 $ 40.9 $ 250.0 EMEA 51.7 12.4 64.1 APAC 29.2 7.1 36.3 Total net sales $ 290.0 $ 60.4 $ 350.4 As of March 31, 2019 and December 31, 2018 , total assets by reportable segment are as follows: (in millions) March 31, 2019 December 31, 2018 Total assets by segment: Americas $ 1,572.4 $ 1,437.3 EMEA 380.3 324.2 APAC 186.3 169.0 Corporate 53.3 144.5 Total assets $ 2,192.3 $ 2,075.0 |
Revision of Previously Issued_2
Revision of Previously Issued Consolidated Financial Statements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Effect of Corrections | The following table summarizes the effects these corrections had on the Company’s unaudited consolidated statement 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 The following table summarizes the effects these corrections had on the Company's unaudited consolidated statement 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 The following table summarizes the effects these corrections had on the Company's unaudited consolidated statement of equity 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 Other comprehensive income 2.6 (0.1 ) 2.5 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 The following table summarizes the effects these error corrections had on the Company's unaudited consolidated statement 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 |
Subsidiary Guarantors of Seni_2
Subsidiary Guarantors of Senior Notes (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Consolidating Statement of Operations | WELBILT, INC. Consolidating Statement of Operations (Unaudited) Three Months Ended March 31, 2019 (in millions) Parent Guarantor Non- Eliminations Consolidated Net sales $ — $ 247.2 $ 231.0 $ (102.9 ) $ 375.3 Cost of sales 1.0 188.6 162.1 (102.9 ) 248.8 Gross profit (1.0 ) 58.6 68.9 — 126.5 Selling, general and administrative expenses 17.1 39.1 32.1 — 88.3 Amortization expense — 7.1 2.4 — 9.5 Restructuring expense 1.5 1.3 1.4 — 4.2 (Loss) earnings from operations (19.6 ) 11.1 33.0 — 24.5 Interest expense 21.8 0.2 2.0 — 24.0 Other (income) expense — net (6.4 ) (0.7 ) 10.1 — 3.0 Equity in earnings (loss) of subsidiaries 23.6 15.1 — (38.7 ) — (Loss) earnings before income taxes (11.4 ) 26.7 20.9 (38.7 ) (2.5 ) Income taxes (8.8 ) 3.1 5.8 — 0.1 Net (loss) earnings $ (2.6 ) $ 23.6 $ 15.1 $ (38.7 ) $ (2.6 ) Total other comprehensive (loss) income, net of tax (2.2 ) (30.5 ) (28.5 ) 59.0 (2.2 ) Comprehensive (loss) income $ (4.8 ) $ (6.9 ) $ (13.4 ) $ 20.3 $ (4.8 ) WELBILT, INC. Consolidating Statement of Operations (Unaudited) Three Months Ended March 31, 2018 (in millions) Parent Guarantor Non- Eliminations Consolidated Net sales $ — $ 252.1 $ 204.2 $ (105.9 ) $ 350.4 Cost of sales 0.8 191.4 137.9 (105.9 ) 224.2 Gross profit (0.8 ) 60.7 66.3 — 126.2 Selling, general and administrative expenses 9.0 37.6 29.8 — 76.4 Amortization expense — 7.1 0.8 — 7.9 Restructuring expense — (0.1 ) 0.5 — 0.4 Gain from disposal of assets — net — (0.1 ) — — (0.1 ) (Loss) earnings from operations (9.8 ) 16.2 35.2 — 41.6 Interest expense 19.1 0.3 0.9 — 20.3 Other (income) expense — net (3.6 ) (2.9 ) 15.0 — 8.5 Equity in earnings (loss) of subsidiaries 26.7 13.2 — (39.9 ) — Earnings (loss) before income taxes 1.4 32.0 19.3 (39.9 ) 12.8 Income taxes (benefit) expense (11.0 ) 5.3 6.1 — 0.4 Net earnings (loss) $ 12.4 $ 26.7 $ 13.2 $ (39.9 ) $ 12.4 Total other comprehensive income (loss), net of tax 2.5 0.7 1.4 (2.1 ) 2.5 Comprehensive income (loss) $ 14.9 $ 27.4 $ 14.6 $ (42.0 ) $ 14.9 |
Consolidating Balance Sheet | WELBILT, INC. Consolidating Balance Sheet (Unaudited) March 31, 2019 (in millions) Parent Guarantor Non- Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 2.2 $ — $ 55.3 $ (2.2 ) $ 55.3 Short-term investment — — 32.8 — 32.8 Accounts receivable — net — 98.2 114.6 — 212.8 Inventories — net — 111.1 94.6 — 205.7 Prepaids and other current assets 14.8 5.3 14.3 — 34.4 Total current assets 17.0 214.6 311.6 (2.2 ) 541.0 Property, plant and equipment — net 7.6 67.8 43.9 — 119.3 Operating lease right-of-use assets — 6.3 29.4 — 35.7 Goodwill — 832.4 101.2 — 933.6 Other intangible assets — net — 363.6 170.2 — 533.8 Intercompany long-term note receivable 20.0 10.1 9.9 (40.0 ) — Due from affiliates — 3,285.6 — (3,285.6 ) — Investment in subsidiaries 4,222.5 — — (4,222.5 ) — Other non-current assets 6.2 4.4 18.3 — 28.9 Total assets $ 4,273.3 $ 4,784.8 $ 684.5 $ (7,550.3 ) $ 2,192.3 Liabilities and equity Current liabilities: Accounts payable $ 0.2 $ 63.0 $ 63.9 $ (2.2 ) $ 124.9 Accrued expenses and other liabilities 21.8 71.8 61.7 — 155.3 Short-term borrowings and current portion of finance leases — 0.9 0.3 — 1.2 Product warranties — 19.0 10.7 — 29.7 Total current liabilities 22.0 154.7 136.6 (2.2 ) 311.1 Long-term debt and finance leases 1,417.0 1.0 75.4 — 1,493.4 Deferred income taxes 59.8 — 43.6 — 103.4 Pension and postretirement health obligations 16.0 9.8 14.0 — 39.8 Intercompany long-term note payable 15.7 — 24.3 (40.0 ) — Due to affiliates 2,549.3 — 736.3 (3,285.6 ) — Investment in subsidiaries — 373.1 — (373.1 ) — Operating lease liabilities — 3.0 19.1 — 22.1 Other long-term liabilities 8.2 20.7 8.3 — 37.2 Total non-current liabilities 4,066.0 407.6 921.0 (3,698.7 ) 1,695.9 Total equity (deficit): Total equity (deficit) 185.3 4,222.5 (373.1 ) (3,849.4 ) 185.3 Total liabilities and equity $ 4,273.3 $ 4,784.8 $ 684.5 $ (7,550.3 ) $ 2,192.3 WELBILT, INC. Consolidating Balance Sheet (Audited) December 31, 2018 (in millions) Parent Guarantor Non- Eliminations 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 and current portion of finance leases — 0.9 15.2 — 16.1 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 finance 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 |
Consolidating Statement of Cash Flows | WELBILT, INC. Consolidating Statement of Cash Flows (Unaudited) Three Months Ended March 31, 2019 (in millions) Parent Guarantor Non- Eliminations Consolidated Cash flows from operating activities Net cash used in operating activities $ (59.1 ) $ (142.0 ) $ (153.7 ) $ (2.2 ) $ (357.0 ) Cash flows from investing activities Cash receipts on beneficial interest in sold receivables — 35.6 160.4 — 196.0 Capital expenditures (1.7 ) (2.4 ) (0.7 ) — (4.8 ) Intercompany investment — 109.4 (9.2 ) (100.2 ) — Other 0.2 — — — 0.2 Net cash (used in) provided by investing activities (1.5 ) 142.6 150.5 (100.2 ) 191.4 Cash flows from financing activities Proceeds from long-term debt 196.5 — — — 196.5 Repayments on long-term debt and finance leases (32.5 ) (0.3 ) — — (32.8 ) Repayment of short-term borrowings — — (15.0 ) — (15.0 ) Payment of contingent consideration — (0.8 ) — — (0.8 ) Exercises of stock options 0.6 — — — 0.6 Payments on tax withholdings for equity awards (1.8 ) — — — (1.8 ) Intercompany financing (100.2 ) — — 100.2 — Net cash provided by (used in) financing activities 62.6 (1.1 ) (15.0 ) 100.2 146.7 Effect of exchange rate changes on cash — — 1.0 — 1.0 Net increase (decrease) in cash and cash equivalents and restricted cash 2.0 (0.5 ) (17.2 ) (2.2 ) (17.9 ) Balance at beginning of period 0.2 0.5 72.5 — 73.2 Balance at end of period $ 2.2 $ — $ 55.3 $ (2.2 ) $ 55.3 WELBILT, INC. Consolidating Statement of Cash Flows (Unaudited) Three Months Ended March 31, 2018 (in millions) Parent Guarantor Non- Eliminations Consolidated Cash flows from operating activities Net cash (used in) provided by operating activities $ (19.0 ) $ (8.0 ) $ (132.4 ) $ 0.7 $ (158.7 ) Cash flows from investing activities Cash receipts on beneficial interest in sold receivables — — 127.9 — 127.9 Capital expenditures (0.1 ) (2.1 ) (1.5 ) — (3.7 ) Purchase of short-term investment — — (35.0 ) — (35.0 ) Proceeds from maturity of short-term investment — — 20.7 — 20.7 Intercompany investment — 10.2 24.6 (34.8 ) — Other 0.3 — — — 0.3 Net cash provided by (used in) investing activities 0.2 8.1 136.7 (34.8 ) 110.2 Cash flows from financing activities Proceeds from long-term debt 74.0 — — — 74.0 Repayments on long-term debt and finance leases (19.0 ) (0.1 ) (0.1 ) — (19.2 ) Debt issuance costs (0.1 ) — — — (0.1 ) Exercises of stock options 2.5 — — — 2.5 Payments on tax withholdings for equity awards (2.0 ) — — — (2.0 ) Intercompany financing (34.8 ) — — 34.8 — Net cash provided by (used in) financing activities 20.6 (0.1 ) (0.1 ) 34.8 55.2 Effect of exchange rate changes on cash — — 3.6 — 3.6 Net increase in cash and cash equivalents and restricted cash 1.8 — 7.8 0.7 10.3 Balance at beginning of period 8.8 — 100.8 (0.8 ) 108.8 Balance at end of period $ 10.6 $ — $ 108.6 $ (0.1 ) $ 119.1 |
Description of the Business (De
Description of the Business (Details) | 3 Months Ended |
Mar. 31, 2019manufacturing_facilitysegment | |
Accounting Policies [Abstract] | |
Number of manufacturing facilities operating | manufacturing_facility | 21 |
Number of reportable segments | segment | 3 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies and Basis of Presentation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Jan. 01, 2019 | Dec. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Short-term borrowings and current portion of finance leases | $ 1.2 | $ 16.1 | ||
Separation expense | 0 | $ 0.1 | ||
Selling, general and administrative expenses | 88.3 | 76.4 | ||
Transformation program costs | 5.8 | |||
Operating lease right-of-use assets | 35.7 | 0 | ||
Operating lease liability | $ 34.3 | |||
Accounting Standards Update 2016-02 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Current portion of capital leases | (1.1) | |||
Short-term borrowings and current portion of finance leases | $ 1.1 | |||
Operating lease right-of-use assets | $ 38 | |||
Operating lease liability | $ 36.6 | |||
Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Separation expense | (0.1) | |||
Selling, general and administrative expenses | $ 0.1 |
Acquisition - Narrative (Detail
Acquisition - Narrative (Details) $ in Millions | Apr. 19, 2018USD ($)brand | Apr. 19, 2018KRW (₩)brand | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) |
Business Acquisition [Line Items] | ||||
Professional services and other direct acquisition and integration costs | $ 0.4 | $ 1.2 | ||
Avaj International Holding AB | ||||
Business Acquisition [Line Items] | ||||
Share capital acquired (as a percent) | 100.00% | |||
Total purchase price | $ 220.3 | ₩ 1,800,000,000 | ||
Cash payment | 159.8 | |||
Interest payment | 2.4 | |||
Shareholder loans | $ 60.5 | |||
Number of brands | brand | 3 | 3 | ||
Professional services and other direct acquisition and integration costs | 0.1 | 1.2 | ||
Derivative notional amount | ₩ | ₩ 1,800,000,000 | |||
Foreign currency unrealized loss | $ 7.8 | |||
Net sales of acquiree | 20.8 | |||
Loss from operations of acquiree | $ (1.1) |
Accounts Receivable Securitiz_2
Accounts Receivable Securitization (Details) - USD ($) | 2 Months Ended | 3 Months Ended | |
Mar. 13, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Capacity of securitization program | $ 110,000,000 | ||
Average collection cycle for accounts receivable (less than) | 60 days | ||
Fair value of deferred purchase price notes | $ 56,900,000 | ||
Trade accounts receivable - accounts receivable securitization program | $ 96,900,000 | ||
Accounts receivable securitization repurchase | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Termination of accounts receivable securitization program, reacquired amount | $ 156,900,000 | ||
Cash proceeds collected on reacquired trade receivables | 65,000,000 | ||
Carrying value of reacquired trade receivables | $ 90,100,000 |
Inventories - Net (Details)
Inventories - Net (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Inventories — gross: | ||
Raw materials | $ 96.8 | $ 90.4 |
Work-in-process | 18.3 | 16 |
Finished goods | 116.7 | 108.8 |
Total inventories — gross | 231.8 | 215.2 |
Excess and obsolete inventory reserve | (21.9) | (20.4) |
Net inventories at FIFO cost | 209.9 | 194.8 |
Excess of FIFO costs over LIFO value | (4.2) | (4.2) |
Inventories — net | $ 205.7 | $ 190.6 |
Property, Plant and Equipment_3
Property, Plant and Equipment - Net (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment | ||
Total cost | $ 416.6 | $ 410.8 |
Less accumulated depreciation | (297.3) | (291.8) |
Property, plant and equipment — net | 119.3 | 119 |
Land | ||
Property, Plant and Equipment | ||
Total cost | 9.6 | 9.8 |
Building and improvements | ||
Property, Plant and Equipment | ||
Total cost | 89 | 88.5 |
Machinery, equipment and tooling | ||
Property, Plant and Equipment | ||
Total cost | 228.9 | 226.6 |
Furniture and fixtures | ||
Property, Plant and Equipment | ||
Total cost | 6.6 | 6.5 |
Computer hardware and software | ||
Property, Plant and Equipment | ||
Total cost | 59.1 | 58.3 |
Construction in progress | ||
Property, Plant and Equipment | ||
Total cost | $ 23.4 | $ 21.1 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts payable: | ||
Trade accounts payable | $ 124.9 | $ 151 |
Total accounts payable | 124.9 | 151 |
Accrued expenses and other liabilities: | ||
Interest payable | 2.8 | 2.2 |
Income taxes payable | 0.8 | 10.2 |
Employee related expenses | 29.4 | 30 |
Restructuring expenses | 4.8 | 3 |
Profit sharing and incentives | 6.4 | 19.9 |
Accrued rebates | 33.5 | 50.8 |
Deferred revenue — current | 2.6 | 2.7 |
Customer advances | 3.5 | 3.1 |
Product liability | 1.3 | 1.3 |
Derivative liability | 10.7 | 18.4 |
Current portion of operating lease liabilities | 12.2 | 0 |
Miscellaneous accrued expenses | 47.3 | 42.1 |
Total accrued expenses and other liabilities | $ 155.3 | $ 183.7 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019USD ($)segment | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | |
Income Tax [Line Items] | |||
Number of reportable segments | segment | 3 | ||
Income taxes (benefit) | $ 0.1 | $ 0.4 | |
Effective tax rate | (4.00%) | 3.10% | |
Discrete tax expense (benefit) | $ 0.8 | $ (3.7) | |
Increase (decrease) to income tax provision | (0.3) | ||
Unrecognized tax benefits | 13.1 | $ 13 | |
Minimum | |||
Income Tax [Line Items] | |||
Unrecognized tax benefits reasonably possible to impact effective income tax rate | 0.2 | ||
Maximum | |||
Income Tax [Line Items] | |||
Unrecognized tax benefits reasonably possible to impact effective income tax rate | $ 1.7 |
Debt - Schedule of Outstanding
Debt - Schedule of Outstanding Debt (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Finance leases | $ 2.6 | $ 2.8 |
Total debt and finance leases, including current portion | 1,524.6 | 1,375.8 |
Current portion of finance leases | (1.1) | (1.1) |
Unamortized debt issuance costs | (23.3) | (24.2) |
Hedge accounting fair value adjustment | (6.8) | (13.7) |
Total long-term debt and finance leases | $ 1,493.4 | $ 1,321.8 |
Weighted average interest rate, finance leases | 4.47% | 4.50% |
Outstanding debt issuance costs, net of amortization | $ 26.4 | $ 27.3 |
Outstanding debt issuance costs, revolving credit facility | 3.1 | |
Revolving loan facility | ||
Debt Instrument [Line Items] | ||
Debt, including current portion | 0 | 15 |
Current portion of debt | $ 0 | $ (15) |
Weighted average interest rate, debt | 4.35% | 4.06% |
Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Debt, including current portion | $ 242 | $ 78 |
Weighted average interest rate, debt | 5.18% | 4.70% |
Term Loan B facility | ||
Debt Instrument [Line Items] | ||
Debt, including current portion | $ 855 | $ 855 |
Weighted average interest rate, debt | 5.43% | 5.22% |
9.50% Senior Notes due 2024 | ||
Debt Instrument [Line Items] | ||
Debt, including current portion | $ 425 | $ 425 |
Interest rate, stated percentage | 9.50% | |
Weighted average interest rate, debt | 9.87% | 9.72% |
Debt - Narrative (Details)
Debt - Narrative (Details) | 1 Months Ended | 3 Months Ended | ||
Apr. 30, 2018USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Mar. 03, 2016USD ($) | |
Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Balance outstanding | $ 242,000,000 | $ 78,000,000 | ||
Revolving credit facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Credit facility capacity | $ 1,300,000,000 | |||
Revolving credit facility | Line of Credit | Base rate | ||||
Debt Instrument [Line Items] | ||||
Spread on variable interest rate | 1.00% | |||
Revolving credit facility | Line of Credit | Term Loan B facility | ||||
Debt Instrument [Line Items] | ||||
Credit facility capacity | 900,000,000 | |||
Revolving credit facility | Line of Credit | Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Credit facility capacity | $ 400,000,000 | |||
Maximum pro forma senior secured leverage ratio | 3.75 | |||
Available borrowings | $ 154,300,000 | |||
Revolving credit facility | Line of Credit | Revolving credit facility | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Spread on variable interest rate | 2.25% | |||
Revolving credit facility | Line of Credit | Revolving credit facility | LIBOR | Minimum | ||||
Debt Instrument [Line Items] | ||||
Spread on variable interest rate | 1.50% | |||
Revolving credit facility | Line of Credit | Revolving credit facility | LIBOR | Maximum | ||||
Debt Instrument [Line Items] | ||||
Spread on variable interest rate | 2.50% | |||
Revolving credit facility | Line of Credit | Revolving credit facility | Base rate | ||||
Debt Instrument [Line Items] | ||||
Spread on variable interest rate | 1.25% | |||
Revolving credit facility | Line of Credit | Letter of credit | ||||
Debt Instrument [Line Items] | ||||
Credit facility capacity | $ 30,000,000 | |||
Balance outstanding | $ 3,700,000 | |||
Revolving credit facility | Line of Credit | Revolving credit facility and term loans | ||||
Debt Instrument [Line Items] | ||||
Credit facility capacity | $ 275,000,000 | |||
Revolving credit facility | Term Loan | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Spread on variable interest rate | 2.50% | |||
Revolving loan facility maturing April 2019 | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Spread on variable interest rate | 1.90% | |||
Revolving loan facility maturing April 2019 | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Credit facility capacity | $ 30,000,000 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) | 3 Months Ended | |||||||||||||||||
Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2017EUR (€)swap | Mar. 31, 2019MXN ($) | Mar. 31, 2019EUR (€) | Mar. 31, 2019USD ($) | Mar. 31, 2019CAD ($) | Mar. 31, 2019SGD ($) | Mar. 31, 2019GBP (£) | Dec. 31, 2018MXN ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2018CAD ($) | Dec. 31, 2018SGD ($) | Dec. 31, 2018GBP (£) | Apr. 19, 2018KRW (₩) | Mar. 31, 2018SEK (kr) | Oct. 31, 2017USD ($) | Mar. 31, 2017USD ($)swap | |
Derivative [Line Items] | ||||||||||||||||||
Cash flow hedge, gain to be reclassified in next twelve months | $ 1,000,000 | |||||||||||||||||
Minimum length of time hedged in cash flow hedge | 15 months | |||||||||||||||||
Maximum length of time hedged in cash flow hedge | 36 months | |||||||||||||||||
Interest expense | $ 24,000,000 | $ 20,300,000 | ||||||||||||||||
Avaj International Holding AB | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Derivative notional amount | ₩ | ₩ 1,800,000,000 | |||||||||||||||||
Cross-currency interest rate swap contract | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Derivative notional amount | € | € 50,000,000 | |||||||||||||||||
Derivative term | 3 years | |||||||||||||||||
Foreign currency exchange contracts | Avaj International Holding AB | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Derivative notional amount | 223,800,000 | kr 1,800,000,000 | ||||||||||||||||
Derivative net liability position | $ 7,800,000 | |||||||||||||||||
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 | 27.90% | 27.90% | 27.90% | 27.90% | 27.90% | 27.90% | ||||||||||||
Designated as Hedging Instrument | Foreign currency exchange contracts | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Derivative notional amount | $ 255,955,000 | € 19,190,500 | $ 22,543,000 | $ 2,128,000 | £ 12,804,498 | $ 175,960,000 | € 9,878,000 | $ 10,990,000 | $ 1,480,000 | £ 12,041,770 | ||||||||
Interest Rate Swap, March 2019 | Designated as Hedging Instrument | Interest rate swap contracts | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Derivative notional amount | $ 175,000,000 | |||||||||||||||||
Interest Rate Swap, March 2020 | Designated as Hedging Instrument | Interest rate swap contracts | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Derivative notional amount | $ 425,000,000 | |||||||||||||||||
Interest Rate Swap, February 2024 | Designated as Hedging Instrument | Interest rate swap contracts | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Derivative notional amount | $ 425,000,000 | |||||||||||||||||
Percentage of long term debt in hedge | 27.90% | 27.90% | 27.90% | 27.90% | 27.90% | 27.90% |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Outstanding Commodity Contracts (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019Tt | Dec. 31, 2018Tt | |
Derivative [Line Items] | ||
Document Period End Date | Mar. 31, 2019 | |
Designated as Hedging Instrument | Aluminum | ||
Derivative [Line Items] | ||
Commodity units hedged, mass | 1,302 | 1,446 |
Designated as Hedging Instrument | Copper | ||
Derivative [Line Items] | ||
Commodity units hedged, mass | 562 | 546 |
Designated as Hedging Instrument | Steel | ||
Derivative [Line Items] | ||
Commodity units hedged, mass | T | 7,223 | 7,080 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Schedule of Currency Forward Contracts (Details) - Foreign currency exchange contracts | Mar. 31, 2019MXN ($) | Mar. 31, 2019EUR (€) | Mar. 31, 2019CAD ($) | Mar. 31, 2019SGD ($) | Mar. 31, 2019GBP (£) | Mar. 31, 2019CHF (SFr) | Dec. 31, 2018MXN ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2018CAD ($) | Dec. 31, 2018SGD ($) | Dec. 31, 2018GBP (£) | Dec. 31, 2018CHF (SFr) |
Designated as Hedging Instrument | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative notional amount | $ 255,955,000 | € 19,190,500 | $ 22,543,000 | $ 2,128,000 | £ 12,804,498 | $ 175,960,000 | € 9,878,000 | $ 10,990,000 | $ 1,480,000 | £ 12,041,770 | ||
Not Designated as Hedging Instrument | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative notional amount | € 67,300,000 | $ 28,272,000 | £ 34,292,568 | SFr 5,300,000 | € 69,700,000 | $ 28,447,000 | £ 23,704,468 | SFr 5,300,000 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Schedule of the Cash Flow and Net Investment Hedging on the Consolidated Statements of Comprehensive Income and Consolidated Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Derivative [Line Items] | ||
Pretax gain/(loss) recognized in AOCI | $ (0.5) | $ 3.3 |
Pretax gain/(loss) reclassified from AOCI into income | 0.7 | 0.9 |
Foreign currency exchange contracts | ||
Derivative [Line Items] | ||
Pretax gain/(loss) recognized in AOCI | (0.1) | 0.8 |
Commodity contracts | ||
Derivative [Line Items] | ||
Pretax gain/(loss) recognized in AOCI | 0.2 | (0.5) |
Interest rate swap contracts | ||
Derivative [Line Items] | ||
Pretax gain/(loss) recognized in AOCI | (0.6) | 3 |
Cost of sales | Foreign currency exchange contracts | ||
Derivative [Line Items] | ||
Pretax gain/(loss) reclassified from AOCI into income | (0.3) | 0.5 |
Cost of sales | Commodity contracts | ||
Derivative [Line Items] | ||
Pretax gain/(loss) reclassified from AOCI into income | (0.1) | 0.5 |
Cost of sales | Interest rate swap contracts | ||
Derivative [Line Items] | ||
Pretax gain/(loss) reclassified from AOCI into income | 0 | 0 |
Interest expense | Foreign currency exchange contracts | ||
Derivative [Line Items] | ||
Pretax gain/(loss) reclassified from AOCI into income | 0 | 0 |
Interest expense | Commodity contracts | ||
Derivative [Line Items] | ||
Pretax gain/(loss) reclassified from AOCI into income | 0 | 0 |
Interest expense | Interest rate swap contracts | ||
Derivative [Line Items] | ||
Pretax gain/(loss) reclassified from AOCI into income | 1.1 | (0.1) |
Net Investment Hedging | ||
Derivative [Line Items] | ||
Pretax gain/(loss) recognized in AOCI | 1.6 | (1.7) |
Gain/(loss) reclassified from AOCI into income | 0 | |
Gain/(loss) recognized in income (amount excluded from effectiveness testing) | 0.4 | |
Net Investment Hedging | Interest rate swap contracts | ||
Derivative [Line Items] | ||
Pretax gain/(loss) recognized in AOCI | 1.6 | (1.7) |
Gain/(loss) reclassified from AOCI into income | $ 0 | |
Net Investment Hedging | Other expense — net | Interest rate swap contracts | ||
Derivative [Line Items] | ||
Gain/(loss) recognized in income (amount excluded from effectiveness testing) | $ 0.4 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Cumulative Basis Adjustments for Fair Value Hedge (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying amount of the hedged liability | $ 418.2 | $ 411.3 |
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liability | (6.8) | (13.7) |
Long-term debt and finance leases | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying amount of the hedged liability | 418.2 | 411.3 |
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liability | (6.8) | (13.7) |
Hedging adjustment on discontinued hedging relationships | $ 0.2 | $ 0.3 |
Derivative Financial Instrume_8
Derivative Financial Instruments - Schedule of Gain or Loss on Fair Value Hedges (Details) - Interest rate swap contracts - Interest expense - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain/(Loss) on Swap | $ 6.6 | $ (8.5) |
Gain/(Loss) on Borrowings | $ (7) | $ 8.8 |
Derivative Financial Instrume_9
Derivative Financial Instruments - Effects of Derivative Financial Instruments on Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Cost of sales | $ 248.8 | $ 224.2 |
Interest expense | 24 | 20.3 |
Amount of gain/(loss) reclassified from AOCI into income | 0.7 | 0.9 |
Interest rate contracts | Cost of sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) - hedged item | 0 | 0 |
Gain (loss) on derivative designated as hedging instrument | 0 | 0 |
Amount of gain/(loss) reclassified from AOCI into income | 0 | 0 |
Interest rate contracts | Interest expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) - hedged item | (7) | 8.8 |
Gain (loss) on derivative designated as hedging instrument | 6.6 | (8.5) |
Amount of gain/(loss) reclassified from AOCI into income | 1.1 | (0.1) |
Foreign currency exchange contracts | Cost of sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain/(loss) reclassified from AOCI into income | (0.3) | 0.5 |
Foreign currency exchange contracts | Interest expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain/(loss) reclassified from AOCI into income | 0 | 0 |
Commodity contracts | Cost of sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain/(loss) reclassified from AOCI into income | (0.1) | 0.5 |
Commodity contracts | Interest expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain/(loss) reclassified from AOCI into income | $ 0 | $ 0 |
Derivative Financial Instrum_10
Derivative Financial Instruments - Location and Effects on Consolidated Statements of Operations of Derivative Instruments Not Designated as Hedging Instruments (Details) - Not Designated as Hedging Instrument - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain/(loss) recognized in income on derivative | $ 2.8 | $ (12.9) |
Foreign currency exchange contracts | Other expense — net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain/(loss) recognized in income on derivative | $ 2.8 | $ (12.9) |
Derivative Financial Instrum_11
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 | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | ||
Document Period End Date | Mar. 31, 2019 | |
Total asset derivatives | $ 4.3 | $ 9 |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Total asset derivatives | 3.2 | 8.9 |
Designated as Hedging Instrument | Prepaids and other current assets | Foreign currency exchange contracts | ||
Derivative [Line Items] | ||
Total asset derivatives | 0.4 | 0.5 |
Designated as Hedging Instrument | Prepaids and other current assets | Commodity contracts | ||
Derivative [Line Items] | ||
Total asset derivatives | 0.2 | 0.2 |
Designated as Hedging Instrument | Prepaids and other current assets | Interest rate swap contracts | ||
Derivative [Line Items] | ||
Total asset derivatives | 2.6 | 4.8 |
Designated as Hedging Instrument | Other non-current assets | Interest rate swap contracts | ||
Derivative [Line Items] | ||
Total asset derivatives | 0 | 3.4 |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Total asset derivatives | 1.1 | 0.1 |
Not Designated as Hedging Instrument | Prepaids and other current assets | Foreign currency exchange contracts | ||
Derivative [Line Items] | ||
Total asset derivatives | $ 1.1 | $ 0.1 |
Derivative Financial Instrum_12
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 | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | ||
Document Period End Date | Mar. 31, 2019 | |
Total liability derivatives | $ 11.9 | $ 24.7 |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Total liability derivatives | 11.9 | 24.4 |
Designated as Hedging Instrument | Accrued expenses and other liabilities | Foreign currency exchange contracts | ||
Derivative [Line Items] | ||
Total liability derivatives | 1.1 | 1.5 |
Designated as Hedging Instrument | Accrued expenses and other liabilities | Commodity contracts | ||
Derivative [Line Items] | ||
Total liability derivatives | 0.8 | 0.9 |
Designated as Hedging Instrument | Accrued expenses and other liabilities | Interest rate swap contracts | ||
Derivative [Line Items] | ||
Total liability derivatives | 8.8 | 15.7 |
Designated as Hedging Instrument | Other long-term liabilities | Commodity contracts | ||
Derivative [Line Items] | ||
Total liability derivatives | 0.1 | 0.4 |
Designated as Hedging Instrument | Other long-term liabilities | Interest rate swap contracts | ||
Derivative [Line Items] | ||
Total liability derivatives | 1.1 | 5.9 |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Total liability derivatives | 0 | 0.3 |
Not Designated as Hedging Instrument | Accrued expenses and other liabilities | Foreign currency exchange contracts | ||
Derivative [Line Items] | ||
Total liability derivatives | $ 0 | $ 0.3 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
9.50% Senior Notes due 2024 | Senior Notes | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Fair value of debt | $ 458.3 | $ 457 |
Term Loan B Facility | Secured Debt | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Fair value of debt | $ 840 | $ 815.5 |
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 | Mar. 31, 2019 | Dec. 31, 2018 |
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Short-term investment | $ 32.8 | $ 32 |
Total current assets at fair value | 37.1 | 37.6 |
Total non-current assets at fair value | 3.4 | |
Total assets at fair value | 37.1 | 41 |
Total current liabilities at fair value | 10.7 | 18.4 |
Total non-current liabilities at fair value | 1.2 | 6.3 |
Total liabilities at fair value | 11.9 | 24.7 |
Foreign currency exchange contracts | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Derivative assets, current | 1.5 | 0.6 |
Total current liabilities at fair value | 1.1 | 1.8 |
Commodity contracts | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Derivative assets, current | 0.2 | 0.2 |
Total current liabilities at fair value | 0.8 | 0.9 |
Total non-current liabilities at fair value | 0.1 | 0.4 |
Interest rate swap contracts | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Derivative assets, current | 2.6 | 4.8 |
Total non-current assets at fair value | 3.4 | |
Total current liabilities at fair value | 8.8 | 15.7 |
Total non-current liabilities at fair value | 1.1 | 5.9 |
Level 1 | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Short-term investment | 0 | 0 |
Total current assets at fair value | 0 | 0 |
Total non-current assets at fair value | 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 | ||
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 current liabilities at fair value | 0 | 0 |
Total non-current liabilities at fair value | 0 | 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 | |
Total current liabilities at fair value | 0 | 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 | ||
Short-term investment | 32.8 | 32 |
Total current assets at fair value | 37.1 | 37.6 |
Total non-current assets at fair value | 3.4 | |
Total assets at fair value | 37.1 | 41 |
Total current liabilities at fair value | 10.7 | 18.4 |
Total non-current liabilities at fair value | 1.2 | 6.3 |
Total liabilities at fair value | 11.9 | 24.7 |
Level 2 | Foreign currency exchange contracts | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Derivative assets, current | 1.5 | 0.6 |
Total current liabilities at fair value | 1.1 | 1.8 |
Level 2 | Commodity contracts | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Derivative assets, current | 0.2 | 0.2 |
Total current liabilities at fair value | 0.8 | 0.9 |
Total non-current liabilities at fair value | 0.1 | 0.4 |
Level 2 | Interest rate swap contracts | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Derivative assets, current | 2.6 | 4.8 |
Total non-current assets at fair value | 3.4 | |
Total current liabilities at fair value | 8.8 | 15.7 |
Total non-current liabilities at fair value | 1.1 | 5.9 |
Level 3 | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Short-term investment | 0 | 0 |
Total current assets at fair value | 0 | 0 |
Total non-current assets at fair value | 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 | ||
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 current liabilities at fair value | 0 | 0 |
Total non-current liabilities at fair value | 0 | 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 | |
Total current liabilities at fair value | 0 | 0 |
Total non-current liabilities at fair value | $ 0 | $ 0 |
Contingencies and Significant_2
Contingencies and Significant Estimates (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Product Warranty Liability [Line Items] | ||
Accruals for environmental matters | $ 0.7 | $ 0.7 |
Document Period End Date | Mar. 31, 2019 | |
Self-retention level, aggregate | $ 2 | |
Product liability reserves | 1.3 | 1.3 |
Product liability reserves for actual cases | 0.5 | 0.6 |
Product liability reserves for claims incurred but not reported | 0.8 | 0.7 |
Warranty claims expected to be paid | 39.7 | $ 39.7 |
United States | ||
Product Warranty Liability [Line Items] | ||
Product liability self-insurance retention levels per occurrence | 0.3 | |
Self insurance reserve | 1 | |
Canada | ||
Product Warranty Liability [Line Items] | ||
Self insurance reserve | 2 | |
Self insurance reserve per occurrence | $ 0.1 |
Product Warranties - Schedule o
Product Warranties - Schedule of the Summary of Product Warranty Activity (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Warranty activity | ||
Balance at beginning of period | $ 39.7 | |
Accruals for warranties issued | 8.7 | |
Settlements made (in cash or in kind) | (8.9) | |
Currency translation impact | 0.2 | |
Balance at end of period | 39.7 | |
Long term warranty liabilities | $ 10 | $ 11.8 |
Product Warranties - Narrative
Product Warranties - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Product Warranty Liability [Line Items] | ||
Standard product warranty, low end of range | 12 months | |
Standard product warranty, high end of range | 60 months | |
Deferred revenue — current | $ 2.6 | $ 2.7 |
Accrued expenses and other liabilities | ||
Product Warranty Liability [Line Items] | ||
Deferred revenue — current | 2.2 | 2.2 |
Other long-term liabilities | ||
Product Warranty Liability [Line Items] | ||
Deferred revenue - noncurrent | $ 3.8 | $ 3.8 |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Components of Period Benefit Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Settlement loss recognized | $ 1.2 | |
Decrease in accrued pension obligation, settlement | 5.5 | |
Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost of projected benefit obligations | 1.3 | $ 1.3 |
Expected return on assets | (1.2) | (1.5) |
Amortization of actuarial net loss | 0.5 | 0.6 |
Settlement loss recognized | 1.2 | 0 |
Net periodic benefit cost | 1.8 | 0.4 |
Postretirement Health and Other Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost of projected benefit obligations | 0.1 | 0.1 |
Expected return on assets | 0 | 0 |
Amortization of actuarial net loss | 0.1 | 0 |
Settlement loss recognized | 0 | 0 |
Net periodic benefit cost | $ 0.2 | $ 0.1 |
Restructuring - Rollforward of
Restructuring - Rollforward of all Restructuring Activities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Rollforward of all restructuring activities | ||
Beginning balance | $ 13.1 | |
Restructuring expense | 4.2 | $ 0.4 |
Use of reserve | (2) | |
Non-cash adjustment | (0.7) | |
Ending balance | $ 14.6 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||
Short term portion of liability | $ 4.8 | $ 3 | ||
Long term portion of liability | 9.8 | $ 10.1 | ||
Restructuring expense | 4.2 | $ 0.4 | ||
Employee Severance | February 2019 Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring cost expected | 5.5 | |||
Stock-based compensation expense - accelerated vesting | 1.3 | |||
Restructuring expense | $ 4.2 | |||
Employee Severance | March 2018 Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expense | $ 0.6 | $ 0.4 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Equity [Abstract] | ||
Foreign currency translation, net of income tax benefit of $1.8 million and $2.1 million at March 31, 2019 and December 31, 2018, respectively | $ (6.5) | $ (6.5) |
Derivative instrument fair market value, net of income tax expense of $1.1 million and $1.3 million at March 31, 2019 and December 31, 2018, respectively | (0.2) | 0.8 |
Employee pension and postretirement benefit adjustments, net of income tax benefit of $6.2 million and $6.3 million at March 31, 2019 and December 31, 2018, respectively | (37.1) | (35.9) |
Accumulated other comprehensive loss | (43.8) | (41.6) |
Foreign currency translation, income tax benefit | 1.8 | 2.1 |
Derivative instrument fair market value, income tax expense | 1.1 | 1.3 |
Employee pension and postretirement benefit adjustments, income tax benefit | $ 6.2 | $ 6.3 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Reconciliations for the Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 186.4 | $ 103.6 |
Other comprehensive income (loss) before reclassifications | (3.1) | 2.8 |
Amounts reclassified out | 1.1 | (0.3) |
Tax effect | (0.2) | 0 |
Total other comprehensive (loss) income, net of tax | (2.2) | 2.5 |
Ending balance | 185.3 | 125.3 |
Foreign Currency Translation | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (6.5) | 4.4 |
Other comprehensive income (loss) before reclassifications | 0.3 | (0.5) |
Amounts reclassified out | 0 | 0 |
Tax effect | (0.3) | 0.5 |
Total other comprehensive (loss) income, net of tax | 0 | 0 |
Ending balance | (6.5) | 4.4 |
Gains and Losses on Cash Flow Hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 0.8 | 3.6 |
Other comprehensive income (loss) before reclassifications | (0.5) | 3.3 |
Amounts reclassified out | (0.7) | (0.9) |
Tax effect | 0.2 | (0.4) |
Total other comprehensive (loss) income, net of tax | (1) | 2 |
Ending balance | (0.2) | 5.6 |
Pension & Postretirement | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (35.9) | (40) |
Other comprehensive income (loss) before reclassifications | (2.9) | 0 |
Amounts reclassified out | 1.8 | 0.6 |
Tax effect | (0.1) | (0.1) |
Total other comprehensive (loss) income, net of tax | (1.2) | 0.5 |
Ending balance | (37.1) | (39.5) |
Total | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (41.6) | (32) |
Total other comprehensive (loss) income, net of tax | (2.2) | 2.5 |
Ending balance | $ (43.8) | $ (29.5) |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Loss - Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Cost of sales | $ 248.8 | $ 224.2 |
Interest expense | 24 | 20.3 |
Other expense — net | (3) | (8.5) |
Total before tax | (2.5) | 12.8 |
Tax effect | (0.1) | (0.4) |
Net (loss) earnings | (2.6) | 12.4 |
Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net (loss) earnings | (0.9) | 0.2 |
Reclassification out of Accumulated Other Comprehensive Income | Gains (losses) on cash flow hedges | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total before tax | 0.7 | 0.9 |
Tax effect | 0.1 | (0.3) |
Net (loss) earnings | 0.8 | 0.6 |
Reclassification out of Accumulated Other Comprehensive Income | Actuarial losses | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other expense — net | (0.6) | (0.6) |
Reclassification out of Accumulated Other Comprehensive Income | Pension settlement | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other expense — net | (1.2) | 0 |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of pension and postretirement items | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total before tax | (1.8) | (0.6) |
Tax effect | 0.1 | 0.2 |
Net (loss) earnings | (1.7) | (0.4) |
Reclassification out of Accumulated Other Comprehensive Income | Foreign currency exchange contracts | Gains (losses) on cash flow hedges | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Cost of sales | (0.3) | 0.5 |
Interest expense | 1.1 | (0.1) |
Reclassification out of Accumulated Other Comprehensive Income | Commodity contracts | Gains (losses) on cash flow hedges | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Cost of sales | $ (0.1) | $ 0.5 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining contract lease terms | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining contract lease terms | 11 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease expense | $ 3.9 |
Finance lease expense: | |
Depreciation of assets | 0.3 |
Short-term lease expense | 0.8 |
Variable lease expense | 0.1 |
Total lease expense | $ 5.1 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Operating leases: | ||
Operating lease right-of-use assets | $ 35.7 | $ 0 |
Current operating lease liabilities | 12.2 | 0 |
Non-current operating lease liabilities | 22.1 | 0 |
Total operating lease liabilities | 34.3 | |
Finance leases: | ||
Property, plant and equipment, at cost | 5.4 | |
Accumulated depreciation | (2.6) | |
Property and equipment — net | 2.8 | |
Current obligations of finance leases | 1.1 | 1.1 |
Finance leases, net of current obligations | 1.5 | |
Total finance lease liabilities | $ 2.6 | $ 2.8 |
Weighted average remaining lease term: | ||
Operating leases | 4 years 4 months 24 days | |
Finance leases | 2 years 7 months 6 days | |
Weighted average discount rate: | ||
Operating leases | 6.60% | |
Finance leases | 4.40% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 3.7 |
Financing cash flows from financing leases | 0.3 |
Right-of-use assets obtained in exchange for lease obligations: | |
Operating Leases | $ 0.8 |
Leases - Future Minimum Rental
Leases - Future Minimum Rental Obligations Under Lease Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Operating | ||
2019 (excluding the three months ended March 30, 2019) | $ 10.8 | |
2020 | 10.7 | |
2021 | 6.9 | |
2022 | 3.8 | |
2023 | 1.5 | |
2024 and thereafter | 6.1 | |
Total lease payments | 39.8 | |
Less: imputed interest | (5.5) | |
Total lease obligations | 34.3 | |
Financing | ||
2019 (excluding the three months ended March 30, 2019) | 0.9 | |
2020 | 1.1 | |
2021 | 0.5 | |
2022 | 0.3 | |
2023 | 0 | |
2024 and thereafter | 0 | |
Total lease payments | 2.8 | |
Less: imputed interest | (0.2) | |
Total lease obligations | $ 2.6 | $ 2.8 |
Leases - Future Minimum Lease C
Leases - Future Minimum Lease Commitments (Details) $ in Millions | Dec. 31, 2018USD ($) |
Operating | |
2019 | $ 15.1 |
2020 | 10.8 |
2021 | 6.7 |
2022 | 3.6 |
2023 | 1.5 |
Thereafter | 5.9 |
Operating leases, minimum payments due | 43.6 |
Financing | |
2019 | 1.1 |
2020 | 0.9 |
2021 | 0.5 |
2022 | 0.3 |
2023 | 0 |
Thereafter | 0 |
Financing leases, minimum payments due | $ 2.8 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of the Weighted Average Shares Outstanding Used to Compute Basic and Diluted Earnings per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Weighted average shares outstanding - Basic (in shares) | 140,612,213 | 139,708,723 |
Effect of dilutive securities: | ||
Effect of dilutive securities (in shares) | 0 | 1,261,820 |
Weighted average shares outstanding - Diluted (in shares) | 140,612,213 | 140,970,543 |
Stock options | ||
Effect of dilutive securities: | ||
Effect of dilutive securities (in shares) | 0 | 736,518 |
Unvested restricted stock | ||
Effect of dilutive securities: | ||
Effect of dilutive securities (in shares) | 0 | 390,226 |
Unvested performance share units | ||
Effect of dilutive securities: | ||
Effect of dilutive securities (in shares) | 0 | 135,076 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Number of antidilutive shares not included in computation of diluted earnings per share (in shares) | 1.9 | 1.6 |
Business Segments - Financial I
Business Segments - Financial Information by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Total net sales | $ 375.3 | $ 350.4 |
Segment Adjusted Operating EBITDA: | ||
Amortization expense | (9.5) | (7.9) |
Depreciation expense | (4.9) | (4.2) |
Transaction costs | (0.4) | (1.2) |
Other items | (6.6) | 0 |
Separation expense | 0 | (0.1) |
Restructuring expense | (4.2) | (0.4) |
Gain from disposal of assets — net | 0 | 0.1 |
Earnings from operations | 24.5 | 41.6 |
Interest expense | (24) | (20.3) |
Other expense — net | (3) | (8.5) |
(Loss) earnings before income taxes | (2.5) | 12.8 |
Transformation program costs | 5.8 | |
Other professional fees | 0.8 | |
United States | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 225 | 223.4 |
Other Americas | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 20.3 | 28.5 |
EMEA | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 88.6 | 62.1 |
APAC | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 41.4 | 36.4 |
Americas | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 240.8 | 250 |
EMEA | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 90.9 | 64.1 |
APAC | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 43.6 | 36.3 |
Operating Segments | ||
Segment Adjusted Operating EBITDA: | ||
Total Segment Adjusted Operating EBITDA | 67 | 67.2 |
Operating Segments | Americas | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 275.1 | 280.2 |
Segment Adjusted Operating EBITDA: | ||
Total Segment Adjusted Operating EBITDA | $ 40.8 | $ 47.6 |
Operating Segments | Americas | Geographic Concentration Risk | EBITDA | ||
Segment Adjusted Operating EBITDA: | ||
Adjusted Operating EBITDA | 14.80% | 17.00% |
Operating Segments | EMEA | ||
Segment Reporting Information [Line Items] | ||
Total net sales | $ 106.7 | $ 81 |
Segment Adjusted Operating EBITDA: | ||
Total Segment Adjusted Operating EBITDA | $ 18.3 | $ 14.1 |
Operating Segments | EMEA | Geographic Concentration Risk | EBITDA | ||
Segment Adjusted Operating EBITDA: | ||
Adjusted Operating EBITDA | 17.20% | 17.40% |
Operating Segments | APAC | ||
Segment Reporting Information [Line Items] | ||
Total net sales | $ 54.8 | $ 43.5 |
Segment Adjusted Operating EBITDA: | ||
Total Segment Adjusted Operating EBITDA | $ 7.9 | $ 5.5 |
Operating Segments | APAC | Geographic Concentration Risk | EBITDA | ||
Segment Adjusted Operating EBITDA: | ||
Adjusted Operating EBITDA | 14.40% | 12.60% |
Elimination of intersegment sales | ||
Segment Reporting Information [Line Items] | ||
Total net sales | $ (61.3) | $ (54.3) |
Corporate and unallocated | ||
Segment Adjusted Operating EBITDA: | ||
Total Segment Adjusted Operating EBITDA | (16.9) | (11.9) |
Acquisitions | ||
Segment Adjusted Operating EBITDA: | ||
Transaction costs | (0.2) | $ (1.2) |
Inventory fair value purchase accounting adjustments | $ 0.2 |
Business Segments - Schedule of
Business Segments - Schedule of Disaggregation of Revenue by Major Source and Geographic Location (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Total net sales | $ 375.3 | $ 350.4 |
Commercial Foodservice Whole Goods | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 316.1 | 290 |
Aftermarket Parts and Support | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 59.2 | 60.4 |
Americas | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 240.8 | 250 |
Americas | Commercial Foodservice Whole Goods | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 202.6 | 209.1 |
Americas | Aftermarket Parts and Support | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 38.2 | 40.9 |
EMEA | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 90.9 | 64.1 |
EMEA | Commercial Foodservice Whole Goods | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 77.5 | 51.7 |
EMEA | Aftermarket Parts and Support | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 13.4 | 12.4 |
APAC | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 43.6 | 36.3 |
APAC | Commercial Foodservice Whole Goods | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 36 | 29.2 |
APAC | Aftermarket Parts and Support | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | $ 7.6 | $ 7.1 |
Business Segments - Total Asset
Business Segments - Total Assets by Segment (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 2,192.3 | $ 2,075 |
Operating Segments | Americas | ||
Segment Reporting Information [Line Items] | ||
Total assets | 1,572.4 | 1,437.3 |
Operating Segments | EMEA | ||
Segment Reporting Information [Line Items] | ||
Total assets | 380.3 | 324.2 |
Operating Segments | APAC | ||
Segment Reporting Information [Line Items] | ||
Total assets | 186.3 | 169 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 53.3 | $ 144.5 |
Revision of Previously Issued_3
Revision of Previously Issued Consolidated Financial Statements - Effect of Corrections on Consolidated Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Income taxes | $ 0.1 | $ 0.4 |
Net earnings | $ (2.6) | 12.4 |
As Reported | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Income taxes | 0.3 | |
Net earnings | 12.5 | |
Adjustment | Immaterial Error Corrections | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Income taxes | 0.1 | |
Net earnings | $ (0.1) |
Revision of Previously Issued_4
Revision of Previously Issued Consolidated Financial Statements - Effect of Corrections on Consolidated Statement of Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net earnings | $ (2.6) | $ 12.4 |
Foreign currency translation adjustments | 0 | |
Total other comprehensive income, net of tax | (2.2) | 2.5 |
Comprehensive (loss) income | $ (4.8) | 14.9 |
As Reported | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net earnings | 12.5 | |
Foreign currency translation adjustments | 0.1 | |
Total other comprehensive income, net of tax | 2.6 | |
Comprehensive (loss) income | 15.1 | |
Immaterial Error Corrections | Adjustment | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net earnings | (0.1) | |
Foreign currency translation adjustments | (0.1) | |
Total other comprehensive income, net of tax | (0.1) | |
Comprehensive (loss) income | $ (0.2) |
Revision of Previously Issued_5
Revision of Previously Issued Consolidated Financial Statements - Effect of Corrections on Consolidated Statement of Equity (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net earnings | $ (2.6) | $ 12.4 | ||
Other comprehensive (loss) income | (2.2) | 2.5 | ||
Total equity (deficit) | 185.3 | 125.3 | $ 186.4 | $ 103.6 |
As Reported | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net earnings | 12.5 | |||
Other comprehensive (loss) income | 2.6 | |||
Total equity (deficit) | 132.3 | |||
Immaterial Error Corrections | Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net earnings | (0.1) | |||
Other comprehensive (loss) income | (0.1) | |||
Total equity (deficit) | (7) | |||
Additional Paid-In Capital (Deficit) | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Total equity (deficit) | (38) | (49) | (41.5) | (54.7) |
Additional Paid-In Capital (Deficit) | As Reported | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Total equity (deficit) | (57.6) | |||
Additional Paid-In Capital (Deficit) | Immaterial Error Corrections | Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Total equity (deficit) | 8.6 | |||
Retained Earnings | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net earnings | (2.6) | 12.4 | ||
Total equity (deficit) | 266 | 202.6 | 268.4 | 189.1 |
Retained Earnings | As Reported | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Total equity (deficit) | 218.1 | |||
Retained Earnings | Immaterial Error Corrections | Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Total equity (deficit) | (15.5) | |||
Accumulated Other Comprehensive Loss | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Other comprehensive (loss) income | (2.2) | 2.5 | ||
Total equity (deficit) | $ (43.8) | (29.5) | $ (41.6) | $ (32) |
Accumulated Other Comprehensive Loss | As Reported | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Total equity (deficit) | (29.4) | |||
Accumulated Other Comprehensive Loss | Immaterial Error Corrections | Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Total equity (deficit) | $ (0.1) |
Revision of Previously Issued_6
Revision of Previously Issued Consolidated Financial Statements - Effect of Corrections on Consolidated Statements of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Net earnings | $ (2.6) | $ 12.4 |
Accounts receivable | (296.2) | (130.9) |
Other current and long-term liabilities | (33.9) | (39.1) |
Net cash used in operating activities | (357) | (158.7) |
Cash receipts on beneficial interest in sold receivables | 196 | 127.9 |
Purchase of short-term investment | 0 | (35) |
Proceeds from maturity of short-term investment | 0 | 20.7 |
Other | 0.2 | 0.3 |
Net cash provided by (used in) investing activities | 191.4 | 110.2 |
Effect of exchange rate changes on cash | 1 | 3.6 |
Net increase (decrease) in cash and cash equivalents and restricted cash | (17.9) | 10.3 |
Balance at beginning of period | 73.2 | 108.8 |
Balance at end of period | 55.3 | 119.1 |
Supplemental disclosures of non-cash activities: | ||
Non-cash investing activity: Beneficial interest obtained in exchange for securitized receivables | $ 238.6 | 169.2 |
As Reported | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Net earnings | 12.5 | |
Accounts receivable | (134.8) | |
Other current and long-term liabilities | (30.1) | |
Net cash used in operating activities | (153.5) | |
Cash receipts on beneficial interest in sold receivables | 131.8 | |
Purchase of short-term investment | 0 | |
Proceeds from maturity of short-term investment | 0 | |
Other | 0 | |
Net cash provided by (used in) investing activities | 128.1 | |
Effect of exchange rate changes on cash | (4.4) | |
Net increase (decrease) in cash and cash equivalents and restricted cash | 25.4 | |
Balance at beginning of period | 128.7 | |
Balance at end of period | 154.1 | |
Supplemental disclosures of non-cash activities: | ||
Non-cash investing activity: Beneficial interest obtained in exchange for securitized receivables | 169.6 | |
Immaterial Error Corrections | Adjustment | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Net earnings | (0.1) | |
Accounts receivable | 3.9 | |
Other current and long-term liabilities | (9) | |
Net cash used in operating activities | (5.2) | |
Cash receipts on beneficial interest in sold receivables | (3.9) | |
Purchase of short-term investment | (35) | |
Proceeds from maturity of short-term investment | 20.7 | |
Other | 0.3 | |
Net cash provided by (used in) investing activities | (17.9) | |
Effect of exchange rate changes on cash | 8 | |
Net increase (decrease) in cash and cash equivalents and restricted cash | (15.1) | |
Balance at beginning of period | (19.9) | |
Balance at end of period | (35) | |
Supplemental disclosures of non-cash activities: | ||
Non-cash investing activity: Beneficial interest obtained in exchange for securitized receivables | $ (0.4) |
Subsidiary Guarantors of Seni_3
Subsidiary Guarantors of Senior Notes - Consolidating Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Condensed Income Statements, Captions [Line Items] | ||
Total net sales | $ 375.3 | $ 350.4 |
Cost of sales | 248.8 | 224.2 |
Gross profit | 126.5 | 126.2 |
Costs and expenses: | ||
Selling, general and administrative expenses | 88.3 | 76.4 |
Amortization expense | 9.5 | 7.9 |
Restructuring expense | 4.2 | 0.4 |
Gain from disposal of assets — net | 0 | (0.1) |
Earnings from operations | 24.5 | 41.6 |
Interest expense | 24 | 20.3 |
Other expense — net | 3 | 8.5 |
Equity in earnings (loss) of subsidiaries | 0 | 0 |
(Loss) earnings before income taxes | (2.5) | 12.8 |
Income taxes | 0.1 | 0.4 |
Net (loss) earnings | (2.6) | 12.4 |
Total other comprehensive income (loss), net of tax | (2.2) | 2.5 |
Comprehensive (loss) income | (4.8) | 14.9 |
Reportable Legal Entities | Parent | ||
Condensed Income Statements, Captions [Line Items] | ||
Total net sales | 0 | 0 |
Cost of sales | 1 | 0.8 |
Gross profit | (1) | (0.8) |
Costs and expenses: | ||
Selling, general and administrative expenses | 17.1 | 9 |
Amortization expense | 0 | 0 |
Restructuring expense | 1.5 | 0 |
Gain from disposal of assets — net | 0 | |
Earnings from operations | (19.6) | (9.8) |
Interest expense | 21.8 | 19.1 |
Other expense — net | (6.4) | (3.6) |
Equity in earnings (loss) of subsidiaries | 23.6 | 26.7 |
(Loss) earnings before income taxes | (11.4) | 1.4 |
Income taxes | (8.8) | (11) |
Net (loss) earnings | (2.6) | 12.4 |
Total other comprehensive income (loss), net of tax | (2.2) | 2.5 |
Comprehensive (loss) income | (4.8) | 14.9 |
Reportable Legal Entities | Guarantor Subsidiaries | ||
Condensed Income Statements, Captions [Line Items] | ||
Total net sales | 247.2 | 252.1 |
Cost of sales | 188.6 | 191.4 |
Gross profit | 58.6 | 60.7 |
Costs and expenses: | ||
Selling, general and administrative expenses | 39.1 | 37.6 |
Amortization expense | 7.1 | 7.1 |
Restructuring expense | 1.3 | (0.1) |
Gain from disposal of assets — net | (0.1) | |
Earnings from operations | 11.1 | 16.2 |
Interest expense | 0.2 | 0.3 |
Other expense — net | (0.7) | (2.9) |
Equity in earnings (loss) of subsidiaries | 15.1 | 13.2 |
(Loss) earnings before income taxes | 26.7 | 32 |
Income taxes | 3.1 | 5.3 |
Net (loss) earnings | 23.6 | 26.7 |
Total other comprehensive income (loss), net of tax | (30.5) | 0.7 |
Comprehensive (loss) income | (6.9) | 27.4 |
Reportable Legal Entities | Non- Guarantor Subsidiaries | ||
Condensed Income Statements, Captions [Line Items] | ||
Total net sales | 231 | 204.2 |
Cost of sales | 162.1 | 137.9 |
Gross profit | 68.9 | 66.3 |
Costs and expenses: | ||
Selling, general and administrative expenses | 32.1 | 29.8 |
Amortization expense | 2.4 | 0.8 |
Restructuring expense | 1.4 | 0.5 |
Gain from disposal of assets — net | 0 | |
Earnings from operations | 33 | 35.2 |
Interest expense | 2 | 0.9 |
Other expense — net | 10.1 | 15 |
Equity in earnings (loss) of subsidiaries | 0 | 0 |
(Loss) earnings before income taxes | 20.9 | 19.3 |
Income taxes | 5.8 | 6.1 |
Net (loss) earnings | 15.1 | 13.2 |
Total other comprehensive income (loss), net of tax | (28.5) | 1.4 |
Comprehensive (loss) income | (13.4) | 14.6 |
Eliminations | ||
Condensed Income Statements, Captions [Line Items] | ||
Total net sales | (102.9) | (105.9) |
Cost of sales | (102.9) | (105.9) |
Gross profit | 0 | 0 |
Costs and expenses: | ||
Selling, general and administrative expenses | 0 | 0 |
Amortization expense | 0 | 0 |
Restructuring expense | 0 | 0 |
Gain from disposal of assets — net | 0 | |
Earnings from operations | 0 | 0 |
Interest expense | 0 | 0 |
Other expense — net | 0 | 0 |
Equity in earnings (loss) of subsidiaries | (38.7) | (39.9) |
(Loss) earnings before income taxes | (38.7) | (39.9) |
Income taxes | 0 | 0 |
Net (loss) earnings | (38.7) | (39.9) |
Total other comprehensive income (loss), net of tax | 59 | (2.1) |
Comprehensive (loss) income | $ 20.3 | $ (42) |
Subsidiary Guarantors of Seni_4
Subsidiary Guarantors of Senior Notes - Consolidating Balance Sheets (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||||
Cash and cash equivalents | $ 55.3 | $ 70.4 | ||
Restricted cash | 0 | 2.8 | ||
Short-term investment | 32.8 | 32 | ||
Accounts receivable — net | 212.8 | 112.5 | ||
Inventories — net | 205.7 | 190.6 | ||
Prepaids and other current assets | 34.4 | 32.2 | ||
Total current assets | 541 | 440.5 | ||
Property, plant and equipment — net | 119.3 | 119 | ||
Operating lease right-of-use assets | 35.7 | 0 | ||
Goodwill | 933.6 | 935.6 | ||
Other intangible assets — net | 533.8 | 546.7 | ||
Intercompany long-term note receivable | 0 | 0 | ||
Due from affiliates | 0 | 0 | ||
Investment in subsidiaries | 0 | 0 | ||
Other non-current assets | 28.9 | 33.2 | ||
Total assets | 2,192.3 | 2,075 | ||
Current liabilities: | ||||
Accounts payable | 124.9 | 151 | ||
Accrued expenses and other liabilities | 155.3 | 183.7 | ||
Short-term borrowings and current portion of finance leases | 1.2 | 16.1 | ||
Product warranties | 29.7 | 27.9 | ||
Total current liabilities | 311.1 | 378.7 | ||
Long-term debt and finance leases | 1,493.4 | 1,321.8 | ||
Deferred income taxes | 103.4 | 104.3 | ||
Pension and postretirement health obligations | 39.8 | 39.2 | ||
Intercompany long-term note payable | 0 | 0 | ||
Due to affiliates | 0 | 0 | ||
Investment in subsidiaries | 0 | 0 | ||
Operating lease liabilities | 22.1 | 0 | ||
Other long-term liabilities | 37.2 | 44.6 | ||
Total non-current liabilities | 1,695.9 | 1,509.9 | ||
Total equity | 185.3 | 186.4 | $ 125.3 | $ 103.6 |
Total liabilities and equity | 2,192.3 | 2,075 | ||
Reportable Legal Entities | Parent | ||||
Current assets: | ||||
Cash and cash equivalents | 2.2 | 0.2 | ||
Restricted cash | 0 | |||
Short-term investment | 0 | 0 | ||
Accounts receivable — net | 0 | 0 | ||
Inventories — net | 0 | 0 | ||
Prepaids and other current assets | 14.8 | 17 | ||
Total current assets | 17 | 17.2 | ||
Property, plant and equipment — net | 7.6 | 3 | ||
Operating lease right-of-use assets | 0 | |||
Goodwill | 0 | 0 | ||
Other intangible assets — net | 0 | 0 | ||
Intercompany long-term note receivable | 20 | 20 | ||
Due from affiliates | 0 | 0 | ||
Investment in subsidiaries | 4,222.5 | 4,200.5 | ||
Other non-current assets | 6.2 | 12.1 | ||
Total assets | 4,273.3 | 4,252.8 | ||
Current liabilities: | ||||
Accounts payable | 0.2 | 0.2 | ||
Accrued expenses and other liabilities | 21.8 | 33.9 | ||
Short-term borrowings and current portion of finance leases | 0 | 0 | ||
Product warranties | 0 | 0 | ||
Total current liabilities | 22 | 34.1 | ||
Long-term debt and finance leases | 1,417 | 1,246.6 | ||
Deferred income taxes | 59.8 | 60.5 | ||
Pension and postretirement health obligations | 16 | 45.5 | ||
Intercompany long-term note payable | 15.7 | 15.7 | ||
Due to affiliates | 2,549.3 | 2,649.5 | ||
Investment in subsidiaries | 0 | 0 | ||
Operating lease liabilities | 0 | |||
Other long-term liabilities | 8.2 | 14.5 | ||
Total non-current liabilities | 4,066 | 4,032.3 | ||
Total equity | 185.3 | 186.4 | ||
Total liabilities and equity | 4,273.3 | 4,252.8 | ||
Reportable Legal Entities | Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0.5 | ||
Restricted cash | 0 | |||
Short-term investment | 0 | 0 | ||
Accounts receivable — net | 98.2 | 0 | ||
Inventories — net | 111.1 | 99.8 | ||
Prepaids and other current assets | 5.3 | 3.5 | ||
Total current assets | 214.6 | 103.8 | ||
Property, plant and equipment — net | 67.8 | 71.1 | ||
Operating lease right-of-use assets | 6.3 | |||
Goodwill | 832.4 | 832.4 | ||
Other intangible assets — net | 363.6 | 370.8 | ||
Intercompany long-term note receivable | 10.1 | 10.1 | ||
Due from affiliates | 3,285.6 | 3,395 | ||
Investment in subsidiaries | 0 | 0 | ||
Other non-current assets | 4.4 | 4 | ||
Total assets | 4,784.8 | 4,787.2 | ||
Current liabilities: | ||||
Accounts payable | 63 | 81.5 | ||
Accrued expenses and other liabilities | 71.8 | 88.8 | ||
Short-term borrowings and current portion of finance leases | 0.9 | 0.9 | ||
Product warranties | 19 | 18.2 | ||
Total current liabilities | 154.7 | 189.4 | ||
Long-term debt and finance leases | 1 | 1.2 | ||
Deferred income taxes | 0 | 0 | ||
Pension and postretirement health obligations | 9.8 | 4.6 | ||
Intercompany long-term note payable | 0 | 0 | ||
Due to affiliates | 0 | 0 | ||
Investment in subsidiaries | 373.1 | 368.3 | ||
Operating lease liabilities | 3 | |||
Other long-term liabilities | 20.7 | 23.2 | ||
Total non-current liabilities | 407.6 | 397.3 | ||
Total equity | 4,222.5 | 4,200.5 | ||
Total liabilities and equity | 4,784.8 | 4,787.2 | ||
Reportable Legal Entities | Non- Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 55.3 | 69.7 | ||
Restricted cash | 2.8 | |||
Short-term investment | 32.8 | 32 | ||
Accounts receivable — net | 114.6 | 114.3 | ||
Inventories — net | 94.6 | 90.8 | ||
Prepaids and other current assets | 14.3 | 11.7 | ||
Total current assets | 311.6 | 321.3 | ||
Property, plant and equipment — net | 43.9 | 44.9 | ||
Operating lease right-of-use assets | 29.4 | |||
Goodwill | 101.2 | 103.2 | ||
Other intangible assets — net | 170.2 | 175.9 | ||
Intercompany long-term note receivable | 9.9 | 9.9 | ||
Due from affiliates | 0 | 0 | ||
Investment in subsidiaries | 0 | 0 | ||
Other non-current assets | 18.3 | 28.1 | ||
Total assets | 684.5 | 683.3 | ||
Current liabilities: | ||||
Accounts payable | 63.9 | 71.2 | ||
Accrued expenses and other liabilities | 61.7 | 61 | ||
Short-term borrowings and current portion of finance leases | 0.3 | 15.2 | ||
Product warranties | 10.7 | 9.7 | ||
Total current liabilities | 136.6 | 157.1 | ||
Long-term debt and finance leases | 75.4 | 74 | ||
Deferred income taxes | 43.6 | 43.8 | ||
Pension and postretirement health obligations | 14 | 0 | ||
Intercompany long-term note payable | 24.3 | 24.3 | ||
Due to affiliates | 736.3 | 745.5 | ||
Investment in subsidiaries | 0 | 0 | ||
Operating lease liabilities | 19.1 | |||
Other long-term liabilities | 8.3 | 6.9 | ||
Total non-current liabilities | 921 | 894.5 | ||
Total equity | (373.1) | (368.3) | ||
Total liabilities and equity | 684.5 | 683.3 | ||
Eliminations | ||||
Current assets: | ||||
Cash and cash equivalents | (2.2) | 0 | ||
Restricted cash | 0 | |||
Short-term investment | 0 | 0 | ||
Accounts receivable — net | 0 | (1.8) | ||
Inventories — net | 0 | 0 | ||
Prepaids and other current assets | 0 | 0 | ||
Total current assets | (2.2) | (1.8) | ||
Property, plant and equipment — net | 0 | 0 | ||
Operating lease right-of-use assets | 0 | |||
Goodwill | 0 | 0 | ||
Other intangible assets — net | 0 | 0 | ||
Intercompany long-term note receivable | (40) | (40) | ||
Due from affiliates | (3,285.6) | (3,395) | ||
Investment in subsidiaries | (4,222.5) | (4,200.5) | ||
Other non-current assets | 0 | (11) | ||
Total assets | (7,550.3) | (7,648.3) | ||
Current liabilities: | ||||
Accounts payable | (2.2) | (1.9) | ||
Accrued expenses and other liabilities | 0 | 0 | ||
Short-term borrowings and current portion of finance leases | 0 | 0 | ||
Product warranties | 0 | 0 | ||
Total current liabilities | (2.2) | (1.9) | ||
Long-term debt and finance leases | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Pension and postretirement health obligations | 0 | (10.9) | ||
Intercompany long-term note payable | (40) | (40) | ||
Due to affiliates | (3,285.6) | (3,395) | ||
Investment in subsidiaries | (373.1) | (368.3) | ||
Operating lease liabilities | 0 | |||
Other long-term liabilities | 0 | 0 | ||
Total non-current liabilities | (3,698.7) | (3,814.2) | ||
Total equity | (3,849.4) | (3,832.2) | ||
Total liabilities and equity | $ (7,550.3) | $ (7,648.3) |
Subsidiary Guarantors of Seni_5
Subsidiary Guarantors of Senior Notes - Consolidating Statement of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash used in operating activities | $ (357) | $ (158.7) |
Cash flows from investing activities | ||
Cash receipts on beneficial interest in sold receivables | 196 | 127.9 |
Capital expenditures | (4.8) | (3.7) |
Purchase of short-term investment | 0 | (35) |
Proceeds from maturity of short-term investment | 0 | 20.7 |
Intercompany investment | 0 | 0 |
Other | 0.2 | 0.3 |
Net cash provided by investing activities | 191.4 | 110.2 |
Cash flows from financing activities | ||
Proceeds from long-term debt | 196.5 | 74 |
Repayments on long-term debt and finance leases | (32.8) | (19.2) |
Repayment of short-term borrowings | (15) | 0 |
Debt issuance costs | 0 | (0.1) |
Payment of contingent consideration | (0.8) | 0 |
Exercises of stock options | 0.6 | 2.5 |
Payments on tax withholdings for equity awards | (1.8) | (2) |
Intercompany financing | 0 | 0 |
Net cash provided by financing activities | 146.7 | 55.2 |
Effect of exchange rate changes on cash | 1 | 3.6 |
Net (decrease) increase in cash and cash equivalents and restricted cash | (17.9) | 10.3 |
Balance at beginning of period | 73.2 | 108.8 |
Balance at end of period | 55.3 | 119.1 |
Reportable Legal Entities | Parent | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash used in operating activities | (59.1) | (19) |
Cash flows from investing activities | ||
Cash receipts on beneficial interest in sold receivables | 0 | 0 |
Capital expenditures | (1.7) | (0.1) |
Purchase of short-term investment | 0 | |
Proceeds from maturity of short-term investment | 0 | |
Intercompany investment | 0 | 0 |
Other | 0.2 | 0.3 |
Net cash provided by investing activities | (1.5) | 0.2 |
Cash flows from financing activities | ||
Proceeds from long-term debt | 196.5 | 74 |
Repayments on long-term debt and finance leases | (32.5) | (19) |
Repayment of short-term borrowings | 0 | |
Debt issuance costs | (0.1) | |
Payment of contingent consideration | 0 | |
Exercises of stock options | 0.6 | 2.5 |
Payments on tax withholdings for equity awards | (1.8) | (2) |
Intercompany financing | (100.2) | (34.8) |
Net cash provided by financing activities | 62.6 | 20.6 |
Effect of exchange rate changes on cash | 0 | 0 |
Net (decrease) increase in cash and cash equivalents and restricted cash | 2 | 1.8 |
Balance at beginning of period | 0.2 | 8.8 |
Balance at end of period | 2.2 | 10.6 |
Reportable Legal Entities | Guarantor Subsidiaries | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash used in operating activities | (142) | (8) |
Cash flows from investing activities | ||
Cash receipts on beneficial interest in sold receivables | 35.6 | 0 |
Capital expenditures | (2.4) | (2.1) |
Purchase of short-term investment | 0 | |
Proceeds from maturity of short-term investment | 0 | |
Intercompany investment | 109.4 | 10.2 |
Other | 0 | 0 |
Net cash provided by investing activities | 142.6 | 8.1 |
Cash flows from financing activities | ||
Proceeds from long-term debt | 0 | 0 |
Repayments on long-term debt and finance leases | (0.3) | (0.1) |
Repayment of short-term borrowings | 0 | |
Debt issuance costs | 0 | |
Payment of contingent consideration | (0.8) | |
Exercises of stock options | 0 | 0 |
Payments on tax withholdings for equity awards | 0 | 0 |
Intercompany financing | 0 | 0 |
Net cash provided by financing activities | (1.1) | (0.1) |
Effect of exchange rate changes on cash | 0 | 0 |
Net (decrease) increase in cash and cash equivalents and restricted cash | (0.5) | 0 |
Balance at beginning of period | 0.5 | 0 |
Balance at end of period | 0 | 0 |
Reportable Legal Entities | Non- Guarantor Subsidiaries | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash used in operating activities | (153.7) | (132.4) |
Cash flows from investing activities | ||
Cash receipts on beneficial interest in sold receivables | 160.4 | 127.9 |
Capital expenditures | (0.7) | (1.5) |
Purchase of short-term investment | (35) | |
Proceeds from maturity of short-term investment | 20.7 | |
Intercompany investment | (9.2) | 24.6 |
Other | 0 | 0 |
Net cash provided by investing activities | 150.5 | 136.7 |
Cash flows from financing activities | ||
Proceeds from long-term debt | 0 | 0 |
Repayments on long-term debt and finance leases | 0 | (0.1) |
Repayment of short-term borrowings | (15) | |
Debt issuance costs | 0 | |
Payment of contingent consideration | 0 | |
Exercises of stock options | 0 | 0 |
Payments on tax withholdings for equity awards | 0 | 0 |
Intercompany financing | 0 | 0 |
Net cash provided by financing activities | (15) | (0.1) |
Effect of exchange rate changes on cash | 1 | 3.6 |
Net (decrease) increase in cash and cash equivalents and restricted cash | (17.2) | 7.8 |
Balance at beginning of period | 72.5 | 100.8 |
Balance at end of period | 55.3 | 108.6 |
Eliminations | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash used in operating activities | (2.2) | 0.7 |
Cash flows from investing activities | ||
Cash receipts on beneficial interest in sold receivables | 0 | 0 |
Capital expenditures | 0 | 0 |
Purchase of short-term investment | 0 | |
Proceeds from maturity of short-term investment | 0 | |
Intercompany investment | (100.2) | (34.8) |
Other | 0 | 0 |
Net cash provided by investing activities | (100.2) | (34.8) |
Cash flows from financing activities | ||
Proceeds from long-term debt | 0 | 0 |
Repayments on long-term debt and finance leases | 0 | 0 |
Repayment of short-term borrowings | 0 | |
Debt issuance costs | 0 | |
Payment of contingent consideration | 0 | |
Exercises of stock options | 0 | 0 |
Payments on tax withholdings for equity awards | 0 | 0 |
Intercompany financing | 100.2 | 34.8 |
Net cash provided by financing activities | 100.2 | 34.8 |
Effect of exchange rate changes on cash | 0 | 0 |
Net (decrease) increase in cash and cash equivalents and restricted cash | (2.2) | 0.7 |
Balance at beginning of period | 0 | (0.8) |
Balance at end of period | $ (2.2) | $ (0.1) |
Uncategorized Items - wbt-20190
Label | Element | Value | |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 200,000 | [1] |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 1,100,000 | [2] |
Retained Earnings [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 1,100,000 | [2] |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 200,000 | [1] |
[1] | Effective January 1, 2019, the Company adopted Accounting Standards Update ("ASU") 2016-02, "Leases (Topic 842)" with additional updates subsequently issued (collectively, "ASU 2016-02"). The cumulative effect of the change made to the consolidated statement of equity as of January 1, 2019 for the adoption of ASU 2016-02 is the result of recognizing the remaining deferred gain associated with a previous sale-leaseback transaction. | ||
[2] | Effective January 1, 2018, the Company adopted ASU 2014-09 "Revenue from Contracts with Customers (Topic 606)" with additional updates subsequently issued (collectively, "ASU 2014-09"). The cumulative effect of the changes made to the consolidated statement of equity 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. |