Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 23, 2018 | Jun. 30, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | AGCO CORP /DE | ||
Entity Central Index Key | 880,266 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 79,614,896 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 4.5 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Net sales | $ 8,306.5 | $ 7,410.5 | $ 7,467.3 |
Cost of goods sold | 6,541.2 | 5,895 | 5,906.7 |
Gross profit | 1,765.3 | 1,515.5 | 1,560.6 |
Selling, general and administrative expenses | 970.7 | 867.9 | 852.3 |
Engineering expenses | 323.1 | 296.1 | 282.2 |
Restructuring expenses | 11.2 | 11.9 | 22.3 |
Amortization of intangibles | 57 | 51.2 | 42.7 |
Income from operations | 403.3 | 288.4 | 361.1 |
Interest expense, net | 45.1 | 52.1 | 45.4 |
Other expense, net | 74.4 | 31.4 | 36.3 |
Income before income taxes and equity in net earnings of affiliates | 283.8 | 204.9 | 279.4 |
Income tax provision | 133.6 | 92.2 | 72.5 |
Income before equity in net earnings of affiliates | 150.2 | 112.7 | 206.9 |
Equity in net earnings of affiliates | 39.1 | 47.5 | 57.1 |
Net income | 189.3 | 160.2 | 264 |
Net (income) loss attributable to noncontrolling interests | (2.9) | (0.1) | 2.4 |
Net income attributable to AGCO Corporation and subsidiaries | $ 186.4 | $ 160.1 | $ 266.4 |
Net income per common share attributable to AGCO Corporation and subsidiaries: | |||
Basic (in dollars per share) | $ 2.34 | $ 1.97 | $ 3.06 |
Diluted (in dollars per share) | 2.32 | 1.96 | 3.06 |
Cash dividends declared and paid per common share (in dollars per share) | $ 0.56 | $ 0.52 | $ 0.48 |
Weighted average number of common and common equivalent shares outstanding: | |||
Basic (in shares) | 79.5 | 81.4 | 87 |
Diluted (in shares) | 80.2 | 81.7 | 87.1 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 189.3 | $ 160.2 | $ 264 |
Defined benefit pension plans, net of taxes: | |||
Prior service cost arising during the year | 0 | (2.6) | (4.7) |
Net loss recognized due to settlement | 0.2 | 0.4 | 0.2 |
Net gain recognized due to curtailment | 0 | (0.1) | 0 |
Net actuarial gain (loss) arising during the year | 6.6 | (62.9) | 2.1 |
Amortization of prior service cost included in net periodic pension cost | 1.3 | 1.1 | 0.4 |
Amortization of net actuarial losses included in net periodic pension cost | 11.3 | 8.6 | 6.3 |
Derivative adjustments: | |||
Net changes in fair value of derivatives | 2 | (7.7) | (4.6) |
Net losses reclassified from accumulated other comprehensive loss into income | 2 | 1 | 2.7 |
Foreign currency translation adjustments | 57.8 | 82.4 | (558.2) |
Other comprehensive income (loss), net of reclassification adjustments | 81.2 | 20.2 | (555.8) |
Comprehensive income (loss) | 270.5 | 180.4 | (291.8) |
Comprehensive (income) loss attributable to noncontrolling interests | (4.1) | (1.7) | 4.5 |
Comprehensive income (loss) attributable to AGCO Corporation and subsidiaries | $ 266.4 | $ 178.7 | $ (287.3) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Current Assets: | ||
Cash and cash equivalents | $ 367.7 | $ 429.7 |
Accounts and notes receivable, net | 1,019.4 | 890.4 |
Inventories, net | 1,872.9 | 1,514.8 |
Other current assets | 367.7 | 330.8 |
Total current assets | 3,627.7 | 3,165.7 |
Property, plant and equipment, net | 1,485.3 | 1,361.3 |
Investment in affiliates | 409 | 414.9 |
Deferred tax assets | 112.2 | 99.7 |
Other assets | 147.1 | 143.1 |
Intangible assets, net | 649 | 607.3 |
Goodwill | 1,541.4 | 1,376.4 |
Total assets | 7,971.7 | 7,168.4 |
Current Liabilities: | ||
Current portion of long-term debt | 95.4 | 85.4 |
Accounts payable | 917.5 | 722.6 |
Accrued expenses | 1,407.9 | 1,160.8 |
Other current liabilities | 229.8 | 176.1 |
Total current liabilities | 2,650.6 | 2,144.9 |
Long-term debt, less current portion and debt issuance costs | 1,618.1 | 1,610 |
Pensions and postretirement health care benefits | 247.3 | 270 |
Deferred tax liabilities | 130.5 | 112.4 |
Other noncurrent liabilities | 229.9 | 193.9 |
Total liabilities | 4,876.4 | 4,331.2 |
Commitments and contingencies (Note 12) | ||
AGCO Corporation stockholders’ equity: | ||
Preferred stock; $0.01 par value, 1,000,000 shares authorized, no shares issued or outstanding in 2017 and 2016 | 0 | 0 |
Common stock; $0.01 par value, 150,000,000 shares authorized, 79,553,825 and 79,465,393 shares issued and outstanding at December 31, 2017 and 2016, respectively | 0.8 | 0.8 |
Additional paid-in capital | 136.6 | 103.3 |
Retained earnings | 4,253.8 | 4,113.6 |
Accumulated other comprehensive loss | (1,361.6) | (1,441.6) |
Total AGCO Corporation stockholders’ equity | 3,029.6 | 2,776.1 |
Noncontrolling interests | 65.7 | 61.1 |
Total stockholders’ equity | 3,095.3 | 2,837.2 |
Total liabilities and stockholders’ equity | $ 7,971.7 | $ 7,168.4 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 79,553,825 | 79,465,393 |
Common stock, shares outstanding (in shares) | 79,553,825 | 79,465,393 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Defined Benefit Pension Plans | Cumulative Translation Adjustment | Deferred Net Gains (Losses) on Derivatives | Noncontrolling Interests |
Beginning balance (in shares) at Dec. 31, 2014 | 89,146,093 | ||||||||
Stockholders' equity, beginning of period at Dec. 31, 2014 | $ 0.9 | $ 582.5 | $ 3,771.6 | $ (906.5) | $ (253.3) | $ (653.1) | $ (0.1) | ||
Noncontrolling interests, beginning of period at Dec. 31, 2014 | $ 48.4 | ||||||||
Beginning balance at Dec. 31, 2014 | $ 3,496.9 | (0.1) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income attributable to AGCO Corporation and subsidiaries | 266.4 | 266.4 | |||||||
Net income (loss) attributable to nonredeemable noncontrolling interest | (2.4) | ||||||||
Net income (loss) | 264 | ||||||||
Payment of dividends to shareholders | (42) | (42) | |||||||
Issuance of restricted stock (in shares) | 15,711 | ||||||||
Issuance of restricted stock | 0.8 | 0.8 | |||||||
Issuance of performance award stock (in shares) | 172,759 | ||||||||
Issuance of performance award stock | (5.6) | (5.6) | |||||||
SSARs exercised (in shares) | 22,176 | ||||||||
SSARs exercised | (0.7) | (0.7) | |||||||
Stock compensation | 11.4 | 11.4 | |||||||
Excess (shortfall) in tax benefit of stock awards | 0.7 | 0.7 | |||||||
Changes in noncontrolling interest | 1.1 | 0 | 1.1 | ||||||
Purchases and retirement of common stock (in shares) | (5,541,930) | ||||||||
Purchases and retirement of common stock | (287.5) | $ (0.1) | (287.4) | ||||||
Prior service cost arising during the year | (4.7) | (4.7) | (4.7) | ||||||
Net loss recognized due to settlement | 0.2 | 0.2 | 0.2 | ||||||
Net gain recognized due to curtailment | 0 | ||||||||
Net actuarial gain (loss) arising during the year | 2.1 | 2.1 | 2.1 | ||||||
Amortization of prior service cost included in net periodic pension cost | 0.4 | 0.4 | 0.4 | ||||||
Amortization of net actuarial losses included in net periodic pension cost | 6.3 | 6.3 | 6.3 | ||||||
Deferred gains and losses on derivatives, net | (1.9) | (1.9) | (1.9) | ||||||
Change in cumulative translation adjustment | (556.1) | (556.1) | |||||||
Change in cumulative translation adjustment, attributable to noncontrolling Interest | (2.1) | ||||||||
Change in cumulative translation adjustment | (558.2) | ||||||||
Ending balance (in shares) at Dec. 31, 2015 | 83,814,809 | ||||||||
Stockholders' equity, beginning of period at Dec. 31, 2015 | $ 0.8 | 301.7 | 3,996 | (1,460.2) | (249) | (1,209.2) | (2) | ||
Noncontrolling interests, end of period at Dec. 31, 2015 | 45 | ||||||||
Ending balance at Dec. 31, 2015 | 2,883.3 | (1,460.2) | (249) | (1,209.2) | (2) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income attributable to AGCO Corporation and subsidiaries | 160.1 | 160.1 | |||||||
Net income (loss) attributable to nonredeemable noncontrolling interest | 0.1 | ||||||||
Net income (loss) | 160.2 | ||||||||
Payment of dividends to shareholders | (42.5) | (42.5) | |||||||
Issuance of restricted stock (in shares) | 15,395 | ||||||||
Issuance of restricted stock | 0.8 | 0.8 | |||||||
Issuance of performance award stock (in shares) | 27,333 | ||||||||
Issuance of performance award stock | (0.9) | (0.9) | |||||||
SSARs exercised (in shares) | 21,106 | ||||||||
SSARs exercised | (0.9) | (0.9) | |||||||
Stock compensation | 17.3 | 17.3 | |||||||
Investment by noncontrolling interest | 12.2 | 12.2 | |||||||
Changes in noncontrolling interest | 0 | (2.2) | 2.2 | ||||||
Purchases and retirement of common stock (in shares) | (4,413,250) | ||||||||
Purchases and retirement of common stock | (212.5) | $ 0 | (212.5) | ||||||
Prior service cost arising during the year | (2.6) | (2.6) | (2.6) | ||||||
Net loss recognized due to settlement | 0.4 | 0.4 | 0.4 | ||||||
Net gain recognized due to curtailment | (0.1) | (0.1) | (0.1) | ||||||
Net actuarial gain (loss) arising during the year | (62.9) | (62.9) | (62.9) | ||||||
Amortization of prior service cost included in net periodic pension cost | 1.1 | 1.1 | 1.1 | ||||||
Amortization of net actuarial losses included in net periodic pension cost | 8.6 | 8.6 | 8.6 | ||||||
Deferred gains and losses on derivatives, net | (6.7) | (6.7) | (6.7) | ||||||
Change in cumulative translation adjustment | 80.8 | 80.8 | |||||||
Change in cumulative translation adjustment, attributable to noncontrolling Interest | 1.6 | ||||||||
Change in cumulative translation adjustment | 82.4 | ||||||||
Ending balance (in shares) at Dec. 31, 2016 | 79,465,393 | ||||||||
Stockholders' equity, beginning of period at Dec. 31, 2016 | 2,776.1 | $ 0.8 | 103.3 | 4,113.6 | (1,441.6) | (304.5) | (1,128.4) | (8.7) | |
Noncontrolling interests, end of period at Dec. 31, 2016 | 61.1 | 61.1 | |||||||
Ending balance at Dec. 31, 2016 | 2,837.2 | (1,441.6) | (304.5) | (1,128.4) | (8.7) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income attributable to AGCO Corporation and subsidiaries | 186.4 | 186.4 | |||||||
Net income (loss) attributable to nonredeemable noncontrolling interest | 2.9 | ||||||||
Net income (loss) | 189.3 | ||||||||
Payment of dividends to shareholders | (44.5) | (44.5) | |||||||
Issuance of restricted stock (in shares) | 12,066 | ||||||||
Issuance of restricted stock | 0.8 | 0.8 | |||||||
Issuance of performance award stock (in shares) | 54,309 | ||||||||
Issuance of performance award stock | (2.2) | (2.2) | |||||||
SSARs exercised (in shares) | 92,521 | ||||||||
SSARs exercised | (4.4) | (4.4) | |||||||
Stock compensation | 39.1 | 39.1 | |||||||
Investment by noncontrolling interest | 0.5 | 0.5 | |||||||
Purchases and retirement of common stock (in shares) | (70,464) | ||||||||
Purchases and retirement of common stock | 0 | $ 0 | 0 | ||||||
Prior service cost arising during the year | 0 | ||||||||
Net loss recognized due to settlement | 0.2 | 0.2 | 0.2 | ||||||
Net gain recognized due to curtailment | 0 | ||||||||
Net actuarial gain (loss) arising during the year | 6.6 | 6.6 | 6.6 | ||||||
Amortization of prior service cost included in net periodic pension cost | 1.3 | 1.3 | 1.3 | ||||||
Amortization of net actuarial losses included in net periodic pension cost | 11.3 | 11.3 | 11.3 | ||||||
Deferred gains and losses on derivatives, net | 4 | 4 | 4 | ||||||
Change in cumulative translation adjustment | 56.6 | 56.6 | |||||||
Change in cumulative translation adjustment, attributable to noncontrolling Interest | 1.2 | ||||||||
Change in cumulative translation adjustment | 57.8 | ||||||||
Ending balance (in shares) at Dec. 31, 2017 | 79,553,825 | ||||||||
Stockholders' equity, beginning of period at Dec. 31, 2017 | 3,029.6 | $ 0.8 | $ 136.6 | $ 4,253.8 | (1,361.6) | (285.1) | (1,071.8) | (4.7) | |
Noncontrolling interests, end of period at Dec. 31, 2017 | 65.7 | $ 65.7 | |||||||
Ending balance at Dec. 31, 2017 | 3,095.3 | $ (1,361.6) | $ (285.1) | $ (1,071.8) | $ (4.7) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Adjustment related to the adoption of ASU 2016-09 | Accounting Standards Update 2016-09 | $ (1.7) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net income | $ 189.3 | $ 160.2 | $ 264 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 222.8 | 223.4 | 217.4 |
Deferred debt issuance cost amortization | 0.7 | 1 | 2 |
Amortization of intangibles | 57 | 51.2 | 42.7 |
Stock compensation expense | 38.2 | 18.1 | 12.2 |
Proceeds from termination of hedging instrument | 0 | 7.3 | 0 |
Equity in net earnings of affiliates, net of cash received | 41.2 | (1.4) | (19) |
Deferred income tax (benefit) provision | (14.1) | 2.1 | (26.8) |
Other | 2.3 | 1.3 | (0.1) |
Changes in operating assets and liabilities, net of effects from purchase of businesses: | |||
Accounts and notes receivable, net | (34.7) | (4.5) | 3.8 |
Inventories, net | (196) | (33.1) | 117.6 |
Other current and noncurrent assets | (36.6) | (98.7) | (49.3) |
Accounts payable | 123.5 | 62.8 | 37.3 |
Accrued expenses | 149 | 47 | (34.8) |
Other current and noncurrent liabilities | 35 | (67.2) | (42.8) |
Total adjustments | 388.3 | 209.3 | 260.2 |
Net cash provided by operating activities | 577.6 | 369.5 | 524.2 |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (203.9) | (201) | (211.4) |
Proceeds from sale of property, plant and equipment | 4.1 | 2.4 | 1.5 |
Purchase of businesses, net of cash acquired | (293.1) | (383.8) | (25.4) |
Investment in consolidated affiliates, net of cash acquired | 0 | (11.8) | 0 |
Investments in unconsolidated affiliates | (0.8) | (4.5) | (3.8) |
Restricted cash and other | 0 | 0.4 | (1.7) |
Net cash used in investing activities | (493.7) | (598.3) | (240.8) |
Cash flows from financing activities: | |||
Proceeds from debt obligations | 3,513.9 | 3,117.9 | 1,951.9 |
Repayments of debt obligations | (3,639.7) | (2,622.4) | (1,769.5) |
Purchases and retirement of common stock | 0 | (212.5) | (287.5) |
Payment of dividends to stockholders | (44.5) | (42.5) | (42) |
Payment of minimum tax withholdings on stock compensation | (6.9) | (2) | (6.3) |
Payment of debt issuance costs | 0 | (2.5) | (0.7) |
Excess tax benefit related to stock compensation | 0 | 0 | 0.7 |
Investments by noncontrolling interests | 0.5 | 0.4 | 0 |
Net cash (used in) provided by financing activities | (176.7) | 236.4 | (153.4) |
Effects of exchange rate changes on cash and cash equivalents | 30.8 | (4.6) | (67) |
(Decrease) increase in cash and cash equivalents | (62) | 3 | 63 |
Cash and cash equivalents, beginning of year | 429.7 | 426.7 | 363.7 |
Cash and cash equivalents, end of year | $ 367.7 | $ 429.7 | $ 426.7 |
Operations and Summary of Signi
Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Operations and Summary of Significant Accounting Policies | Operations and Summary of Significant Accounting Policies Business AGCO Corporation and subsidiaries (“AGCO” or the “Company”) is a leading manufacturer and distributor of agricultural equipment and related replacement parts throughout the world. The Company sells a full range of agricultural equipment, including tractors, combines, hay tools, sprayers, forage equipment, seeding and tillage equipment, implements, and grain storage and protein production systems. The Company’s products are widely recognized in the agricultural equipment industry and are marketed under a number of well-known brand names including: Challenger ® , Fendt ® , GSI ® , Massey Ferguson ® and Valtra ® . The Company distributes most of its products through a combination of approximately 4,200 independent dealers and distributors as well as the Company utilizes associates and licensees to provide a distribution channel for its products. In addition, the Company provides retail financing through its finance joint ventures with Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., or “Rabobank.” Basis of Presentation and Consolidation The Company’s Consolidated Financial Statements represent the consolidation of all wholly-owned companies, majority-owned companies and joint ventures in which the Company has been determined to be the primary beneficiary. The Company consolidates a variable interest entity (“VIE”) if the Company determines it is the primary beneficiary. The primary beneficiary of a VIE is the party that has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits that potentially could be significant to the VIE. The Company also consolidates all entities that are not considered VIEs if it is determined that the Company has a controlling voting interest to direct the activities that most significantly impact the joint venture or entity. The Company records investments in all other affiliate companies using the equity method of accounting when it has significant influence. Other investments, including those representing an ownership interest of less than 20% , are recorded at cost. All significant intercompany balances and transactions have been eliminated in the Consolidated Financial Statements. Certain prior period amounts have been reclassified to conform to the current period presentation. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The estimates made by management primarily relate to accounts and notes receivable, inventories, deferred income tax valuation allowances, uncertain tax positions, goodwill and other identifiable intangible assets, and certain accrued liabilities, principally relating to reserves for volume discounts and sales incentives, warranty obligations, product liability and workers’ compensation obligations, and pensions and postretirement benefits. Revenue Recognition Sales of equipment and replacement parts are recorded by the Company when title and risks of ownership have been transferred to an independent dealer, distributor or other customer. In certain countries, sales of certain grain storage and protein production systems in which the Company is responsible for construction or installation and which may be contingent upon customer acceptance, are recorded on an over-time basis, using a percentage of completion method. Payment terms vary by market and product, with fixed payment schedules on all sales. The terms of sale generally require that a purchase order or order confirmation accompany all shipments. Title generally passes to the dealer or distributor upon shipment or specified delivery, and the risk of loss upon damage, theft or destruction of the equipment is the responsibility of the dealer, distributor or third-party carrier at the point of the stated shipping or delivery term. In certain foreign countries, the Company retains a form of title to goods delivered to dealers until the dealer makes payment so that the Company can recover the goods in the event of customer default on payment. This occurs as the laws of some foreign countries do not provide for a seller’s retention of a security interest in goods in the same manner as established in the United States Uniform Commercial Code. The only right the Company retains with respect to the title is that enabling recovery of the goods in the event of customer default on payment. The dealer or distributor may not return equipment or replacement parts while its contract with the Company is in force. Replacement parts may be returned only under promotional and annual return programs. Provisions for returns under these programs are made at the time of sale based on the terms of the program and historical returns experience. The Company may provide certain sales incentives to dealers and distributors. Provisions for sales incentives are made at the time of sale for existing incentive programs. These provisions are revised in the event of subsequent modification to the incentive program. See “Accounts and Notes Receivable” for further discussion. In the United States and Canada, amounts due from sales to dealers are immediately due upon a retail sale of the underlying equipment by the dealer with the exception of sales of grain storage and protein production systems as discussed further below. If not previously paid by the dealer in the United States and Canada, installment payments are required generally beginning after the interest-free period with the remaining outstanding equipment balance generally due within 12 months after shipment or delivery. Some specified programs in the United States and Canada may allow for interest-free periods and due dates of up to 24 months for certain products. Interest generally is charged on the outstanding balance six to 12 months after shipment or delivery. Sales terms of some highly seasonal products provide for payment and due dates based on a specified date during the year regardless of the shipment date. Equipment sold to dealers in the United States and Canada is paid in full on average within 12 months of shipment. Sales of replacement parts generally are payable within 30 days of shipment, with terms for some larger, seasonal stock orders generally requiring payment within six months of shipment. In other international markets, equipment sales generally are payable in full within 30 to 180 days of shipment or delivery. Payment terms for some highly seasonal products have a specified due date during the year regardless of the shipment or delivery date. Sales of replacement parts generally are payable within 30 to 90 days of shipment, with terms for some larger, seasonal stock orders generally payable within six months of shipment. In certain markets, there is a time lag, which varies based on the timing and level of retail demand, between the date the Company records a sale and when the dealer sells the equipment to a retail customer. Sales of grain storage and protein production systems generally are payable within 30 days of shipment. In certain countries, sales of such systems in which the Company is responsible for construction or installation and which may be contingent upon customer acceptance, payment terms vary by market and product, with fixed payment schedules on all sales. Foreign Currency Translation The financial statements of the Company’s foreign subsidiaries are translated into United States currency in accordance with Accounting Standards Codification (“ASC”) 830, “Foreign Currency Matters.” Assets and liabilities are translated to United States dollars at period-end exchange rates. Income and expense items are translated at average rates of exchange prevailing during the period. Translation adjustments are included in “Accumulated other comprehensive loss” in stockholders’ equity within the Company’s Consolidated Balance Sheets. Gains and losses, which result from foreign currency transactions, are included in the accompanying Consolidated Statements of Operations. Cash and Cash Equivalents Cash at December 31, 2017 and 2016 of $317.0 million and $386.2 million , respectively, consisted primarily of cash on hand and bank deposits. The Company considers all investments with an original maturity of three months or less to be cash equivalents. Cash equivalents at December 31, 2017 and 2016 of $50.7 million and $43.5 million , respectively, consisted primarily of money market deposits, certificates of deposits and overnight investments. Accounts and Notes Receivable Accounts and notes receivable arise from the sale of equipment and replacement parts to independent dealers, distributors or other customers. Payments due under the Company’s terms of sale generally range from one to 12 months and are not contingent upon the sale of the equipment by the dealer or distributor to a retail customer. Under normal circumstances, payment terms are not extended and equipment may not be returned. In certain regions, with respect to most equipment sales, including the United States and Canada, the Company is obligated to repurchase equipment and replacement parts upon cancellation of a dealer or distributor contract. These obligations are required by national, state or provincial laws and require the Company to repurchase a dealer or distributor’s unsold inventory, including inventories for which the receivable already has been paid. The Company offers various sales terms with respect to its products. For sales in most markets outside of the United States and Canada, the Company generally does not charge interest on outstanding receivables with its dealers and distributors. For sales to certain dealers or distributors in the United States and Canada, interest is charged at or above prime lending rates on outstanding receivable balances after interest-free periods. These interest-free periods vary by product and generally range from one to 12 months as previously discussed. In limited circumstances, the Company provides sales terms, and in some cases, interest-free periods that are longer than 12 months for certain products. These are typically specified programs, predominantly in the United States and Canada, in which interest is charged after a period of up to 24 months depending on the year of the sale and the dealer or distributor’s ordering or sales volume during the preceding year. Actual interest-free periods are shorter than described above because the equipment receivable from dealers or distributors in some countries, such as in the United States and Canada, is generally due immediately upon sale of the equipment to a retail customer. Receivables can also be paid prior to terms specified in sales agreements. Under normal circumstances, interest is not forgiven and interest-free periods are not extended. The following summarizes by geographic region, as a percentage of our consolidated net sales, amounts with maximum interest-free periods as presented below (in millions): Year Ended December 31, 2017 North America South America Europe/ Middle East Asia/Pacific/Africa Consolidated 0 to 6 months $ 1,399.6 $ 1,063.5 $ 4,603.9 $ 752.0 $ 7,819.0 94.1 % 7 to 12 months 467.7 — 10.4 — 478.1 5.8 % 13 to 24 months 9.4 — — — 9.4 0.1 % $ 1,876.7 $ 1,063.5 $ 4,614.3 $ 752.0 $ 8,306.5 100.0 % The Company has an agreement to permit transferring, on an ongoing basis, a majority of its wholesale interest-bearing and non-interest bearing accounts receivable in North America, Europe and Brazil to its U.S., Canadian, European and Brazilian finance joint ventures. Qualified dealers may obtain additional financing through the Company’s U.S., Canadian, European and Brazilian finance joint ventures at the joint ventures’ discretion. The Company provides various volume bonus and sales incentive programs with respect to its products. These sales incentive programs include reductions in invoice prices, reductions in retail financing rates, dealer commissions and dealer incentive allowances. In most cases, incentive programs are established and communicated to the Company’s dealers on a quarterly basis. The incentives are paid either at the time of the cash settlement of the receivable (which is generally at the time of retail sale), at the time of retail financing, at the time of warranty registration, or at a subsequent time based on dealer purchase volumes. The incentive programs are product-line specific and generally do not vary by dealer. The cost of sales incentives associated with dealer commissions and dealer incentive allowances is estimated based upon the terms of the programs and historical experience, is often based on a percentage of the sales price and is recorded at the later of (a) the date at which the related revenue is recognized, or (b) the date at which the sales incentive is offered. The related provisions and accruals are made on a product or product-line basis and are monitored for adequacy and revised at least quarterly in the event of subsequent modifications to the programs. Volume discounts are estimated and recognized based on historical experience, and related reserves are monitored and adjusted based on actual dealer purchase volumes and the dealer’s progress towards achieving specified cumulative target levels. The Company records the cost of interest subsidy payments, which is a reduction in the retail financing rates, at the later of (a) the date at which the related revenue is recognized, or (b) the date at which the sales incentive is offered. Estimates of these incentives are based on the terms of the programs and historical experience. All incentive programs are recorded and presented as a reduction of revenue, due to the fact that the Company does not receive an identifiable benefit in exchange for the consideration provided. In the United States and Canada, reserves for incentive programs related to accounts receivable not sold to Company’s U.S. and Canadian finance joint ventures are recorded as “accounts receivable allowances” within the Company’s Consolidated Balance Sheets due to the fact that the incentives are paid through a reduction of future cash settlement of the receivable. Globally, reserves for incentive programs that will be paid in cash or credit memos, as is the case with most of the Company’s volume discount programs, as well as sales with incentives associated with accounts receivable sold to its finance joint ventures, are recorded within “Accrued expenses” within the Company’s Consolidated Balance Sheets. Accounts and notes receivable are shown net of allowances for sales incentive discounts available to dealers and for doubtful accounts. Cash flows related to the collection of receivables are reported within “Cash flows from operating activities” within the Company’s Consolidated Statements of Cash Flows. Accounts and notes receivable allowances at December 31, 2017 and 2016 were as follows (in millions): 2017 2016 Sales incentive discounts $ 33.1 $ 34.5 Doubtful accounts 37.5 33.7 $ 70.6 $ 68.2 In the United States and Canada, sales incentives can be paid through future cash settlements of receivables and through credit memos to Company’s dealers or through reductions in retail financing rates paid to the Company’s finance joint ventures. Outside of the United States and Canada, sales incentives can be paid through cash or credit memos to the Company’s dealers or through reductions in retail financing rates paid to the Company’s finance joint ventures. The Company transfers certain accounts receivable under its accounts receivable sales agreements with its finance joint ventures (Note 4). The Company records such transfers as sales of accounts receivable when it is considered to have surrendered control of such receivables under the provisions of Accounting Standards Update (“ASU”) 2009-16, “Transfers and Servicing (Topic 860): Accounting for Transfers of Financial Assets.” Cash payments made to the Company’s finance joint ventures for sales incentive discounts provided to dealers related to outstanding accounts receivables sold are recorded within “Accrued expenses”. Inventories Inventories are valued at the lower of cost or market using the first-in, first-out method. Market is current replacement cost (by purchase or by reproduction, dependent on the type of inventory). In cases where market exceeds net realizable value (i.e., estimated selling price less reasonably predictable costs of completion and disposal), inventories are stated at net realizable value. Market is not considered to be less than net realizable value reduced by an allowance for an approximately normal profit margin. At December 31, 2017 and 2016 , the Company had recorded $165.7 million and $137.2 million , respectively, as an adjustment for surplus and obsolete inventories. These adjustments are reflected within “Inventories, net” within the Company’s Consolidated Balance Sheets. Inventories, net at December 31, 2017 and 2016 were as follows (in millions): 2017 2016 Finished goods $ 684.1 $ 589.3 Repair and replacement parts 605.9 532.5 Work in process 178.7 113.8 Raw materials 404.2 279.2 Inventories, net $ 1,872.9 $ 1,514.8 Cash flows related to the sale of inventories are reported within “Cash flows from operating activities” within the Company’s Consolidated Statements of Cash Flows. Property, Plant and Equipment Property, plant and equipment are recorded at cost, less accumulated depreciation and amortization. Depreciation is provided on a straight-line basis over the estimated useful lives of ten to 40 years for buildings and improvements, three to 15 years for machinery and equipment and three to ten years for furniture and fixtures. Expenditures for maintenance and repairs are charged to expense as incurred. Property, plant and equipment, net at December 31, 2017 and 2016 consisted of the following (in millions): 2017 2016 Land $ 130.6 $ 112.1 Buildings and improvements 792.0 681.8 Machinery and equipment 2,391.6 2,116.1 Furniture and fixtures 147.6 126.4 Gross property, plant and equipment 3,461.8 3,036.4 Accumulated depreciation and amortization (1,976.5 ) (1,675.1 ) Property, plant and equipment, net $ 1,485.3 $ 1,361.3 Goodwill, Other Intangible Assets and Long-Lived Assets The Company tests goodwill for impairment, at the reporting unit level, annually and when events or circumstances indicate that fair value of a reporting unit may be below its carrying value. A reporting unit is an operating segment or one level below an operating segment, for example, a component. The Company combines and aggregates two or more components of an operating segment as a single reporting unit if the components have similar economic characteristics. The Company’s reportable segments are not its reporting units. Goodwill is evaluated annually as of October 1 for impairment using a qualitative assessment or a quantitative two-step assessment. If the Company elects to perform a qualitative assessment and determines the fair value of its reporting units more likely than not exceed their carrying value, no further evaluation is necessary. For reporting units where the Company performs a two-step quantitative assessment, the first step requires the Company to compare the fair value of each reporting unit, which is determined based on a combination of a discounted cash flow valuation approach and a market multiple valuation approach, to its respective carrying value, including goodwill. If the fair value of the reporting unit exceeds its carrying value, the goodwill is not considered impaired. If the carrying value is higher than the fair value of the reporting unit, the second step of the quantitative process is required to measure the amount of impairment, if any. The second step of the quantitative assessment results in a calculation of the implied fair value of the reporting unit’s goodwill, which is determined as the excess of the fair value of a reporting unit over the fair values assigned to its assets and liabilities. If the implied fair value of goodwill is less than the carrying value of the reporting unit’s goodwill, the difference is recognized as an impairment loss. The Company reviews its long-lived assets, which include intangible assets subject to amortization, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The evaluation for recoverability is performed at a level where independent cash flows may be attributed to either an asset or asset group. If the Company determines that the carrying amount of an asset or asset group is not recoverable based on the expected undiscounted future cash flows of the asset or asset group, an impairment loss is recorded equal to the excess of the carrying amounts over the estimated fair value of the long-lived assets. Estimates of future cash flows are based on many factors, including current operating results, expected market trends and competitive influences. The Company also evaluates the amortization periods assigned to its intangible assets to determine whether events or changes in circumstances warrant revised estimates of useful lives. Assets to be disposed of by sale are reported at the lower of the carrying amount or fair value, less estimated costs to sell. The results of the Company’s goodwill and long-lived assets impairment analyses conducted as of October 1, 2017 , 2016 and 2015 indicated that no reduction in the carrying amount of the Company’s goodwill and long-lived assets was required. The Company’s accumulated goodwill impairment is approximately $180.5 million related to impairment charges the Company recorded during 2012 and 2006 pertaining to its Chinese harvesting reporting unit and former sprayer reporting unit, respectively. The Chinese harvesting business operates within the Asia/Pacific/Africa geographical reportable segment and the former sprayer reporting unit operates within the North American geographical reportable segment. Changes in the carrying amount of goodwill during the years ended December 31, 2017 , 2016 and 2015 are summarized as follows (in millions): North America South America Europe/ Middle East Asia/Pacific/Africa Consolidated Balance as of December 31, 2014 $ 513.6 $ 169.7 $ 445.4 $ 64.1 $ 1,192.8 Acquisition 5.1 — 4.4 12.7 22.2 Foreign currency translation — (55.3 ) (38.6 ) (6.6 ) (100.5 ) Balance as of December 31, 2015 518.7 114.4 411.2 70.2 1,114.5 Acquisitions 25.2 — 196.4 47.6 269.2 Foreign currency translation — 24.4 (25.7 ) (6.0 ) (7.3 ) Balance as of December 31, 2016 543.9 138.8 581.9 111.8 1,376.4 Acquisitions 67.2 — 17.4 — 84.6 Foreign currency translation — (2.4 ) 71.7 11.1 80.4 Balance as of December 31, 2017 $ 611.1 $ 136.4 $ 671.0 $ 122.9 $ 1,541.4 The Company amortizes certain acquired identifiable intangible assets primarily on a straight-line basis over their estimated useful lives, which range from three to 50 years. The acquired intangible assets have a weighted average useful life as follows: Intangible Asset Weighted-Average Useful Life Patents and technology 12 years Customer relationships 13 years Trademarks and trade names 19 years Land use rights 45 years For the years ended December 31, 2017 , 2016 and 2015 , acquired intangible asset amortization was $57.0 million , $51.2 million and $42.7 million , respectively. The Company estimates amortization of existing intangible assets will be $62.8 million in 2018 and 2019 , $62.4 million in 2020 , $59.8 million in 2021 , and $59.1 million in 2022 . The Company has previously determined that two of its trademarks have an indefinite useful life. The Massey Ferguson trademark has been in existence since 1952 and was formed from the merger of Massey-Harris (established in the 1890’s) and Ferguson (established in the 1930’s). The Massey Ferguson brand is currently sold in approximately 120 countries worldwide, making it one of the most widely sold tractor brands in the world. The Company also has identified the Valtra trademark as an indefinite-lived asset. The Valtra trademark has been in existence since the late 1990’s, but is a derivative of the Valmet trademark which has been in existence since 1951. The Valmet name transitioned to the Valtra name over a period of time in the marketplace. The Valtra brand is currently sold in over 80 countries around the world. Both the Massey Ferguson brand and the Valtra brand are primary product lines of the Company’s business, and the Company plans to use these trademarks for an indefinite period of time. The Company plans to continue to make investments in product development to enhance the value of these brands into the future. There are no legal, regulatory, contractual, competitive, economic or other factors that the Company is aware of or that the Company believes would limit the useful lives of the trademarks. The Massey Ferguson and Valtra trademark registrations can be renewed at a nominal cost in the countries in which the Company operates. Changes in the carrying amount of acquired intangible assets during 2017 and 2016 are summarized as follows (in millions): Trademarks and Customer Relationships Patents and Technology Land Use Rights Total Gross carrying amounts: Balance as of December 31, 2015 $ 122.2 $ 492.3 $ 92.5 $ 9.1 $ 716.1 Acquisitions 61.2 69.0 32.3 — 162.5 Foreign currency translation (4.2 ) (3.3 ) (2.7 ) (0.6 ) (10.8 ) Balance as of December 31, 2016 179.2 558.0 122.1 8.5 867.8 Acquisitions 19.5 24.4 28.1 — 72.0 Foreign currency translation 9.7 18.0 9.8 0.6 38.1 Balance as of December 31, 2017 $ 208.4 $ 600.4 $ 160.0 $ 9.1 $ 977.9 Trademarks and Customer Relationships Patents and Technology Land Use Rights Total Accumulated amortization: Balance as of December 31, 2015 $ 41.9 $ 193.8 $ 55.1 $ 2.9 $ 293.7 Amortization expense 8.0 37.4 5.6 0.2 51.2 Foreign currency translation (0.2 ) 1.8 (1.2 ) (0.4 ) — Balance as of December 31, 2016 49.7 233.0 59.5 2.7 344.9 Amortization expense 10.3 38.5 8.0 0.2 57.0 Foreign currency translation 1.4 8.2 5.9 0.1 15.6 Balance as of December 31, 2017 $ 61.4 $ 279.7 $ 73.4 $ 3.0 $ 417.5 Trademarks and Indefinite-lived intangible assets: Balance as of December 31, 2015 $ 85.3 Foreign currency translation (0.9 ) Balance as of December 31, 2016 84.4 Foreign currency translation 4.2 Balance as of December 31, 2017 $ 88.6 Accrued Expenses Accrued expenses at December 31, 2017 and 2016 consisted of the following (in millions): 2017 2016 Reserve for volume discounts and sales incentives $ 489.1 $ 407.3 Warranty reserves 273.6 223.1 Accrued employee compensation and benefits 283.3 234.0 Accrued taxes 135.4 113.5 Other 226.5 182.9 $ 1,407.9 $ 1,160.8 Warranty Reserves The warranty reserve activity for the years ended December 31, 2017 , 2016 and 2015 consisted of the following (in millions): 2017 2016 2015 Balance at beginning of the year $ 255.6 $ 230.3 $ 284.6 Acquisitions 5.1 3.7 0.2 Accruals for warranties issued during the year 215.9 214.6 152.6 Settlements made (in cash or in kind) during the year (183.1 ) (188.7 ) (186.2 ) Foreign currency translation 22.5 (4.3 ) (20.9 ) Balance at the end of the year $ 316.0 $ 255.6 $ 230.3 The Company’s agricultural equipment products generally are under warranty against defects in materials and workmanship for a period of one to four years. The Company accrues for future warranty costs at the time of sale based on historical warranty experience. Approximately $42.4 million and $32.5 million of warranty reserves are included in “Other noncurrent liabilities” in the Company’s Consolidated Balance Sheets as of December 31, 2017 and 2016 , respectively. Insurance Reserves Under the Company’s insurance programs, coverage is obtained for significant liability limits as well as those risks required to be insured by law or contract. It is the policy of the Company to self-insure a portion of certain expected losses primarily related to workers’ compensation and comprehensive general liability, product and vehicle liability. Provisions for losses expected under these programs are recorded based on the Company’s estimates of the aggregate liabilities for the claims incurred. Stock Incentive Plans Stock compensation expense was recorded as follows (in millions). Refer to Note 10 for additional information regarding the Company’s stock incentive plans during 2017 , 2016 and 2015 : Years Ended December 31, 2017 2016 2015 Cost of goods sold $ 2.8 $ 1.5 $ 0.9 Selling, general and administrative expenses 35.6 16.9 11.6 Total stock compensation expense $ 38.4 $ 18.4 $ 12.5 Research and Development Expenses Research and development expenses are expensed as incurred and are included in engineering expenses in the Company’s Consolidated Statements of Operations. Advertising Costs The Company expenses all advertising costs as incurred. Cooperative advertising costs normally are expensed at the time the revenue is earned. Advertising expenses for the years ended December 31, 2017 , 2016 and 2015 totaled approximately $42.6 million , $46.8 million and $50.0 million , respectively. Shipping and Handling Expenses All shipping and handling fees charged to customers are included as a component of net sales. Shipping and handling costs are included as a part of cost of goods sold, with the exception of certain handling costs included in selling, general and administrative expenses in the amount of $29.5 million , $24.3 million and $24.6 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Interest Expense, Net Interest expense, net for the years ended December 31, 2017 , 2016 and 2015 consisted of the following (in millions): 2017 2016 2015 Interest expense $ 54.5 $ 65.4 $ 64.1 Interest income (9.4 ) (13.3 ) (18.7 ) $ 45.1 $ 52.1 $ 45.4 Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Refer to Note 6 for additional information regarding the Company’s income taxes. Net Income Per Common Share Basic net income per common share is computed by dividing net income by the weighted average number of common shares outstanding during each period. Diluted net income per common share assumes the exercise of outstanding stock-settled stock appreciation rights (“SSARs”) and the vesting of performance share awards and restricted stock units using the treasury stock method when the effects of such assumptions are dilutive. A reconciliation of net income attributable to AGCO Corporation and its subsidiaries and weighted average common shares outstanding for purposes of calculating basic and diluted net income per share during the years ended December 31, 2017 , 2016 and 2015 is as follows (in millions, except per share data): 2017 2016 2015 Basic net income per share: Net income attributable to AGCO Corporation and subsidiaries $ 186.4 $ 160.1 $ 266.4 Weighted average number of common shares outstanding 79.5 81.4 87.0 Basic net income per share attributable to AGCO Corporation and subsidiaries $ 2.34 $ 1.97 $ 3.06 Diluted net income per share: Net income attributable to AGCO Corporation and subsidiaries $ 186.4 $ 160.1 $ 266.4 Weighted average number of common shares outstanding 79.5 81.4 87.0 Dilutive SSARs, performance share awards and restricted stock units 0.7 0.3 0.1 Weighted average number of common shares and common share equivalents outstanding for purposes of computing diluted net income per share 80.2 81.7 87.1 Diluted net income per share attributable to AGCO Corporation and subsidiaries $ 2.32 $ 1.96 $ 3.06 SSARs to purchase 0.3 million shares, 1.1 million shares and 1.2 million shares of the Company’s common stock were outstanding for the years ended December 31, 2017 , 2016 and 2015 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions On October 2, 2017, the Company acquired the hay and forage division of the Lely Group (“Lely”) for approximately €80.5 million (or approximately $95.0 million ), net of cash acquired of approximately €6.0 million (or approximately $7.1 million ). The Lely acquisition, with manufacturing locations in northern Germany, will allow the Company to expand its product offering of hay and forage equipment, including balers, loader wagons and other harvesting tools. The acquisition was financed by the Company’s credit facility (Note 7). The preliminary fair values of the assets acquired and liabilities assumed as of the acquisition date are presented in the following table (in millions): Current assets $ 84.6 Property, plant and equipment 24.3 Intangible assets 7.6 Goodwill 17.4 Total assets acquired 133.9 Current liabilities 23.6 Long-term liabilities 8.2 Total liabilities assumed 31.8 Net assets acquired $ 102.1 The acquired identifiable intangible assets of Lely as of the date of the acquisition are summarized in the following table (in millions): Intangible Asset Amount Weighted-Average Useful Life Customer relationships $ 3.0 5 years Technology 3.0 12 years Trademarks 1.6 10 years $ 7.6 The results of operations of Lely have been included in the Company’s Consolidated Financial Statements as of and from the date of acquisition. The associated goodwill has been included in the Company’s Europe/Middle East geographical reportable segment. Proforma results related to the acquisition were not material. On September 1, 2017, the Company acquired Precision Planting LLC (“Precision Planting”) for approximately $198.1 million , net of cash acquired of approximately $1.6 million . Precision Planting, headquartered in Tremont, Illinois, is a leading manufacturer of high-tech planting equipment. The acquisition of Precision Planting provided the Company an opportunity to expand its precision farming technology offerings on a global basis. The acquisition was financed by the Company’s credit facility (Note 7). The preliminary fair values of the assets acquired and liabilities assumed as of the acquisition date are presented in the following table (in millions): Current assets $ 59.5 Property, plant and equipment 20.8 Intangible assets 64.4 Goodwill 67.2 Total assets acquired 211.9 Current liabilities 12.2 Total liabilities assumed 12.2 Net assets acquired $ 199.7 The acquired identifiable intangible assets of Precision Planting as of the date of the acquisition are summarized in the following table (in millions): Intangible Asset Amount Weighted-Average Useful Life Customer relationships $ 21.4 14 years Technology 25.1 10 years Trademarks 17.9 20 years $ 64.4 The results of operations of Precision Planting have been included in the Company’s Consolidated Financial Statements as of and from the date of acquisition. The associated tax deductible goodwill has been included in the Company’s North America geographical reportable segment. Proforma results related to the acquisition were not material. On September 12, 2016, the Company acquired Cimbria Holdings Limited (“Cimbria”) for DKK 2,234.9 million (or approximately $337.5 million ), net of cash acquired of approximately DKK83.4 million (or approximately $12.6 million ). Cimbria, headquartered in Thisted, Denmark, is a leading manufacturer of products and solutions for the processing, handling and storage of seed and grain. The acquisition was financed by the Company’s credit facility (Note 7). The fair values of the assets acquired and liabilities assumed as of the acquisition date are presented in the following table (in millions): Current assets $ 74.2 Property, plant and equipment 21.9 Intangible assets 128.9 Goodwill 237.9 Total assets acquired 462.9 Current liabilities 63.8 Deferred tax liabilities 38.5 Long-term debt and other noncurrent liabilities 10.5 Total liabilities assumed 112.8 Net assets acquired $ 350.1 The acquired identifiable intangible assets of Cimbria as of the date of the acquisition are summarized in the following table (in millions) : Intangible Asset Amount Weighted-Average Useful Life Customer relationships $ 50.4 9 years Technology 22.5 10 years Trademarks 56.0 20 years $ 128.9 The results of operations of Cimbria have been included in the Company’s Consolidated Financial Statements as of and from the date of acquisition. The associated goodwill has been included in the Company’s Europe/Middle East and Asia/Pacific/Africa geographical reportable segments. On February 2, 2016, the Company acquired Tecno Poultry Equipment S.p.A (“Tecno”) for approximately €58.7 million (or approximately $63.8 million ). The Company acquired cash of approximately €17.6 million (or approximately $19.1 million ) associated with the acquisition. Tecno, headquartered in Ronchi Di Villafranca, Italy, manufactures and supplies poultry housing and related products, including egg collection equipment and trolley feeding systems. The acquisition was financed through the Company’s credit facility (Note 7). The Company allocated the purchase price to the assets acquired and liabilities assumed based on their fair values as of the acquisition date. The acquired net assets primarily consisted of accounts receivable, inventories, accounts payable and accrued expenses, deferred revenue, property, plant and equipment, and customer relationship, technology and trademark identifiable intangible assets. The Company recorded approximately $27.5 million of customer relationship, technology and trademark identifiable intangible assets and approximately $20.4 million of goodwill associated with the acquisition. The results of operations of Tecno have been included in the Company’s Consolidated Financial Statements as of and from the date of acquisition. The associated goodwill has been included in the Company’s Europe/Middle East and North America geographical reportable segments. The acquired identifiable intangible assets of Tecno as of the date of the acquisition are summarized in the following table (in millions): Intangible Asset Amount Weighted-Average Useful Life Customer relationships $ 15.7 10 years Technology 7.9 10 years Trademarks 3.9 10 years $ 27.5 On April 17, 2015, the Company acquired Farmer Automatic GmbH & Co. KG (“Farmer Automatic”) for approximately $17.9 million , net of cash acquired of approximately $0.1 million . Farmer Automatic, headquartered in Laer, Germany, manufactures and supplies poultry housing and related products, including egg production cages and broiler production equipment. The acquisition was financed with available cash on hand. The Company allocated the purchase price to the assets acquired and liabilities assumed based on their fair values as of the acquisition date. The acquired net assets primarily consisted of accounts receivable, inventories, accounts payable and accrued expenses, property, plant and equipment, and customer relationship, technology and trademark identifiable intangible assets. The Company recorded approximately $9.6 million of identifiable intangible assets and approximately $10.0 million of goodwill associated with the acquisition. The results of operations of Farmer Automatic have been included in the Company’s Consolidated Financial Statements as of and from the date of the acquisition. The associated goodwill has been included in the Company’s Europe/Middle East, North America and Asia/Pacific/Africa geographical reportable segments. The acquired identifiable intangible assets of Farmer Automatic as of the date of the acquisition are summarized in the following table (in millions): Intangible Asset Amount Weighted-Average Useful Life Customer relationships $ 4.1 10 years Technology 3.6 10 years Trademarks 1.9 10 years $ 9.6 |
Restructuring Expenses
Restructuring Expenses | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Expenses | Restructuring Expenses Beginning in 2014 through 2017, the Company announced and initiated several actions to rationalize employee headcount at various manufacturing facilities and various administrative offices located in Europe, South America, China and the United States in order to reduce costs in response to softening global market demand and lower production volumes. The aggregate headcount reduction was approximately 2,750 employees in 2014, 2015 and 2016. During 2017 , the Company recorded severance and related costs associated with further rationalizations in connection with the termination of approximately 620 employees. The components of the restructuring expenses are summarized as follows (in millions): Write-down of Property, Plant and Equipment Employee Severance Facility Closure Costs Total Balance as of December 31, 2014 $ — $ 25.3 $ 0.1 $ 25.4 2015 provision — 23.0 — 23.0 2015 provision reversal — (0.7 ) — (0.7 ) 2015 cash activity — (29.4 ) (0.1 ) (29.5 ) Foreign currency translation — (1.3 ) — (1.3 ) Balance as of December 31, 2015 — 16.9 — 16.9 2016 provision — 11.0 1.0 12.0 2016 provision reversal — (0.1 ) — (0.1 ) 2016 cash activity — (13.1 ) (0.2 ) (13.3 ) Foreign currency translation — (0.2 ) — (0.2 ) Balance as of December 31, 2016 — 14.5 0.8 15.3 2017 provision 0.2 12.4 — 12.6 Less: Non-cash expense (0.2 ) — — (0.2 ) Cash expense — 12.4 — 12.4 2017 provision reversal — (1.4 ) — (1.4 ) 2017 cash activity — (16.0 ) (0.8 ) (16.8 ) Foreign currency translation — 1.4 — 1.4 Balance as of December 31, 2017 $ — $ 10.9 $ — $ 10.9 |
Accounts Receivable Sales Agree
Accounts Receivable Sales Agreements | 12 Months Ended |
Dec. 31, 2017 | |
Accounts Receivable Sales Agreements [Abstract] | |
Accounts Receivable Sales Agreements | Accounts Receivable Sales Agreements At December 31, 2017 and 2016 , the Company had accounts receivable sales agreements that permit the sale, on an ongoing basis, of a majority of its wholesale receivables in North America, Europe and Brazil to its U.S., Canadian, European and Brazilian finance joint ventures. As of December 31, 2017 and 2016 , the cash received from receivables sold under the U.S., Canadian, European and Brazilian accounts receivable sales agreements was approximately $1.3 billion and $1.1 billion , respectively. Under the terms of the accounts receivable sales agreements in North America, Europe and Brazil, the Company pays an annual servicing fee related to the servicing of the receivables sold. The Company also pays the respective AGCO Finance entities an interest payment calculated based upon LIBOR plus a margin on any non-interest bearing accounts receivable outstanding and sold under the sales agreements. These fees are reflected within losses on the sales of receivables included within “Other expense, net” in the Company’s Consolidated Statements of Operations. The Company does not service the receivables after the sale occurs and does not maintain any direct retained interest in the receivables. The Company reviewed its accounting for the accounts receivable sales agreements and determined that these facilities should be accounted for as off-balance sheet transactions. Losses on sales of receivables associated with the accounts receivable financing facilities discussed above, reflected within “Other expense, net” in the Company’s Consolidated Statements of Operations, were approximately $39.2 million , $19.5 million and $18.8 million during 2017 , 2016 and 2015 , respectively. The Company’s finance joint ventures in Europe, Brazil and Australia also provide wholesale financing directly to the Company’s dealers. The receivables associated with these arrangements are without recourse to the Company. The Company does not service the receivables after the sale occurs and does not maintain any direct retained interest in the receivables. As of December 31, 2017 and 2016 , these finance joint ventures had approximately $41.6 million and $41.5 million , respectively, of outstanding accounts receivable associated with these arrangements. The Company reviewed its accounting for these arrangements and determined that these arrangements should be accounted for as off-balance sheet transactions. In addition, the Company sells certain trade receivables under factoring arrangements to other financial institutions around the world. The Company reviewed the sale of such receivables and determined that these arrangements should be accounted for as off-balance sheet transactions. |
Investments in Affiliates
Investments in Affiliates | 12 Months Ended |
Dec. 31, 2017 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Investments in Affiliates | Investments in Affiliates Investments in affiliates as of December 31, 2017 and 2016 were as follows (in millions): 2017 2016 Finance joint ventures $ 373.7 $ 380.8 Manufacturing joint ventures 20.1 17.8 Other affiliates 15.2 16.3 $ 409.0 $ 414.9 The Company’s manufacturing joint ventures as of December 31, 2017 consisted of Groupement International De Mecanique Agricole SA (“GIMA”) (a joint venture with a third-party manufacturer to purchase, design and manufacture components for agricultural equipment in France), and joint ventures with third-party manufacturers to assemble tractors in Algeria and engines in South America. The other joint ventures represent investments in farm equipment manufacturers, an electronic and software system manufacturer, distributors and licensees. The Company’s equity in net earnings of affiliates for the years ended December 31, 2017 , 2016 and 2015 were as follows (in millions): 2017 2016 2015 Finance joint ventures $ 39.9 $ 45.5 $ 53.8 Manufacturing and other joint ventures (0.8 ) 2.0 3.3 $ 39.1 $ 47.5 $ 57.1 Summarized combined financial information of the Company’s finance joint ventures as of December 31, 2017 and 2016 and for the years ended December 31, 2017 , 2016 and 2015 were as follows (in millions): As of December 31, 2017 2016 Total assets $ 8,440.0 $ 7,448.0 Total liabilities 7,677.3 6,670.8 Partners’ equity 762.7 777.2 For the Years Ended December 31, 2017 2016 2015 Revenues $ 305.7 $ 297.4 $ 313.0 Costs 183.0 159.0 158.1 Income before income taxes $ 122.7 $ 138.4 $ 154.9 The majority of the assets of the Company’s finance joint ventures represents finance receivables. The majority of the liabilities represents notes payable and accrued interest. Under the various joint venture agreements, Rabobank or its affiliates provide financing to the joint venture companies (Note 14). At December 31, 2017 and 2016 , the Company’s receivables from affiliates were approximately $23.4 million and $54.4 million , respectively. The receivables from affiliates are reflected within “Accounts and notes receivable, net” within the Company’s Consolidated Balance Sheets. The portion of the Company’s retained earnings balance that represents undistributed retained earnings of equity method investees was approximately $321.9 million and $312.6 million as of December 31, 2017 and 2016 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The sources of income before income taxes and equity in net earnings of affiliates were as follows for the years ended December 31, 2017 , 2016 and 2015 (in millions): 2017 2016 2015 United States $ (141.6 ) $ (150.0 ) $ (49.1 ) Foreign 425.4 354.9 328.5 Income before income taxes and equity in net earnings of affiliates $ 283.8 $ 204.9 $ 279.4 The provision (benefit) for income taxes by location of the taxing jurisdiction for the years ended December 31, 2017 , 2016 and 2015 consisted of the following (in millions): 2017 2016 2015 Current: United States: Federal $ 20.3 $ (24.3 ) $ (1.3 ) State 0.6 0.2 2.8 Foreign 126.8 114.2 97.8 147.7 90.1 99.3 Deferred: United States: Federal 0.9 21.9 (19.0 ) State — — — Foreign (15.0 ) (19.8 ) (7.8 ) (14.1 ) 2.1 (26.8 ) $ 133.6 $ 92.2 $ 72.5 On December 22, 2017, the Tax Cuts and Jobs Act (“the 2017 Tax Act”) was enacted in the United States. The 2017 Tax Act includes a number of changes to existing U.S. tax laws that impact the Company, including a reduction of the U.S. corporate income tax rate from 35 percent to 21 percent for tax years beginning after December 31, 2017. The 2017 Tax Act also provides for a one-time transition tax on certain foreign earnings and the acceleration of depreciation for certain assets placed into service after September 27, 2017, as well as prospective changes beginning in 2018, including the repeal of the domestic manufacturing deduction, capitalization of research and development expenditures, additional limitations on executive compensation and limitations on the deductibility of interest. During the three months ended December 31, 2017 , the Company recorded a provision of approximately $42.0 million in accordance with Staff Accounting Bulletin No. 118, which provides SEC Staff guidance for the application of ASC 740, “Income Taxes,” in the reporting period in which the 2017 Tax Act was enacted. The Company’s Consolidated Financial Statements reflect both the income tax effects of the 2017 Tax Act for which the accounting under ASC 740 is complete as well as provisional amounts for those specific income tax effects of the 2017 Tax Act for which the accounting under ASC 740 is incomplete but a reasonable estimate could be determined. The Company did not identify any items for which the income tax effects of the 2017 Tax Act have not been completed and a reasonable estimate could not be determined as of December 31, 2017 . The $42.0 million provision included a provisional income tax charge of approximately $14.3 million related to the one-time transition tax associated with the mandatory deemed repatriation of approximately $3.4 billion of unremitted foreign earnings. The $42.0 million provision included in the Company’s rate reconciliation below as “Impacts related to the 2017 Tax Act” is net of (a) a $49.6 million benefit associated with 2017 U.S. pre-tax losses that were netted against the determination of the U.S. transition tax and (b) a $37.0 million benefit from the use of certain tax credits. The offsets of these benefits are reflected within “Tax effect of permanent differences” and “Change in valuation allowance”, respectively. The Company’s provision also included a provisional income tax charge of approximately $10.4 million for the income tax consequences associated with the expected future repatriation of certain underlying foreign earnings as, historically, the Company had considered them to be indefinitely reinvested. The remaining balance of the Company’s provision primarily related to the remeasurement of certain net deferred tax assets using the lower enacted U.S. Corporate tax rate, as well as other miscellaneous related impacts. The final impact of the tax reform legislation may differ materially due to factors such as further refinement of the Company’s calculations, changes in interpretations and assumptions that the Company and its advisors have made, additional guidance that may be issued in the future by the U.S. government, and actions that the Company may take as a result of the tax reform legislation. Additional information and analysis are needed for factors such as whether non-U.S. entities are subject to withholding taxes, have reserve requirements, or have projected working capital and other capital needs in the country where the earnings were generated that would result in a decision to indefinitely reinvest a portion or all of their earnings. When more guidance and interpretations are released, specifically with respect to the transition tax and future repatriation of foreign earnings to the U.S., the Company will complete its accounting and revise any provisional estimates, if required. A reconciliation of income taxes computed at the United States federal statutory income tax rate ( 35% ) to the provision for income taxes reflected in the Company’s Consolidated Statements of Operations for the years ended December 31, 2017 , 2016 and 2015 is as follows (in millions): 2017 2016 2015 Provision for income taxes at United States federal statutory rate of 35% $ 99.3 $ 71.7 $ 97.8 State and local income taxes, net of federal income tax effects (5.7 ) (6.0 ) (2.0 ) Taxes on foreign income which differ from the United States statutory rate (57.7 ) (44.5 ) (34.9 ) Tax effect of permanent differences 60.6 14.4 7.1 Change in valuation allowance (1.4 ) 37.9 (4.5 ) Change in tax contingency reserves 3.8 23.4 15.4 Research and development tax credits (5.0 ) (3.8 ) (4.9 ) Impacts related to the 2017 Tax Act 42.0 — — Other (2.3 ) (0.9 ) (1.5 ) $ 133.6 $ 92.2 $ 72.5 The significant components of the deferred tax assets and liabilities at December 31, 2017 and 2016 were as follows (in millions): 2017 2016 Deferred Tax Assets: Net operating loss carryforwards $ 83.4 $ 85.5 Sales incentive discounts 60.2 73.7 Inventory valuation reserves 34.4 39.9 Pensions and postretirement health care benefits 52.2 70.4 Warranty and other reserves 92.2 118.1 Research and development tax credits 2.9 11.2 Foreign tax credits 10.4 24.0 Other 19.2 24.6 Total gross deferred tax assets 354.9 447.4 Valuation allowance (81.9 ) (116.0 ) Total net deferred tax assets 273.0 331.4 Deferred Tax Liabilities: Tax over book depreciation and amortization 229.1 284.9 Investment in affiliates 53.9 45.6 Other 8.3 13.6 Total deferred tax liabilities 291.3 344.1 Net deferred tax (liabilities) assets $ (18.3 ) $ (12.7 ) Amounts recognized in Consolidated Balance Sheets: Deferred tax assets - noncurrent $ 112.2 $ 99.7 Deferred tax liabilities - noncurrent (130.5 ) (112.4 ) $ (18.3 ) $ (12.7 ) The Company recorded a net deferred tax liability of $18.3 million and $12.7 million as of December 31, 2017 and December 31, 2016 , respectively. As reflected in the preceding table, the Company had a valuation allowance of $81.9 million and $116.0 million as of December 31, 2017 and 2016 , respectively. During the second quarter of 2016 , the Company established a valuation allowance to fully reserve its net deferred tax assets in the United States. The decrease in the Company’s valuation allowance during 2017 was primarily related to the release of a portion of the Company’s valuation allowance in China, which it had maintained against the deferred tax assets of one of its Chinese subsidiaries. A valuation allowance is established when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company assessed the likelihood that its deferred tax assets would be recovered from estimated future taxable income and available tax planning strategies and determined that all adjustments to the valuation allowance were appropriate. In making this assessment, all available evidence was considered including the current economic climate, as well as reasonable tax planning strategies. The Company believes it is more likely than not that the Company will realize its remaining net deferred tax assets, net of the valuation allowance, in future years. The Company had net operating loss carryforwards of $272.3 million as of December 31, 2017 , with expiration dates as follows: 2018 - $26.5 million ; 2019 - $41.1 million ; 2020 - $48.2 million and thereafter or unlimited - $156.5 million . The net operating loss carryforwards of $272.3 million were entirely in tax jurisdictions outside of the United States. The Company paid income taxes of $111.2 million , $106.2 million and $97.6 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. At December 31, 2017 and 2016 , the Company had $163.4 million and $139.9 million , respectively, of unrecognized income tax benefits, all of which would affect the Company’s effective tax rate if recognized. At December 31, 2017 and 2016 , the Company had approximately $61.8 million and $47.0 million , respectively, of accrued or deferred taxes related to uncertain income tax positions connected with ongoing income tax audits in various jurisdictions that it expects to settle or pay in the next 12 months. The Company accrued approximately $4.6 million and $3.4 million of interest and penalties related to unrecognized tax benefits in its provision for income taxes during 2017 and 2016 , respectively. At December 31, 2017 and 2016 , the Company had accrued interest and penalties related to unrecognized tax benefits of $23.0 million and $16.4 million , respectively. A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits as of and during the years ended December 31, 2017 and 2016 is as follows (in millions): 2017 2016 Gross unrecognized income tax benefits $ 139.9 $ 133.0 Additions for tax positions of the current year 16.4 14.4 Additions for tax positions of prior years 4.8 15.2 Reductions for tax positions of prior years for: Changes in judgments 1.4 (1.2 ) Settlements during the year (0.4 ) (13.8 ) Lapses of applicable statute of limitations (14.4 ) (5.0 ) Foreign currency translation 15.7 (2.7 ) Gross unrecognized income tax benefits $ 163.4 $ 139.9 The Company and its subsidiaries file income tax returns in the United States and in various state, local and foreign jurisdictions. The Company and its subsidiaries are routinely examined by tax authorities in these jurisdictions. As of December 31, 2017 , a number of income tax examinations in foreign jurisdictions were ongoing. It is possible that certain of these ongoing examinations may be resolved within 12 months. Due to the potential for resolution of federal, state and foreign examinations, and the expiration of various statutes of limitation, it is reasonably possible that the Company’s gross unrecognized income tax benefits balance may materially change within the next 12 months. Due to the number of jurisdictions and issues involved and the uncertainty regarding the timing of any settlements, the Company is unable at this time to provide a reasonable estimate of such change that may occur within the next 12 months. Although there are ongoing examinations in various federal and state jurisdictions, the 2014 through 2017 tax years generally remain subject to examination in the United States by applicable authorities. In the Company’s significant foreign jurisdictions, primarily the United Kingdom, France, Germany, Switzerland, Finland and Brazil, the 2012 through 2017 tax years generally remain subject to examination by their respective tax authorities. In Brazil, the Company is contesting disallowed deductions related to the amortization of certain goodwill amounts (Note 12). |
Indebtedness
Indebtedness | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Indebtedness | Indebtedness Indebtedness consisted of the following at December 31, 2017 and 2016 (in millions): December 31, 2017 December 31, 2016 1.056% Senior term loan due 2020 $ 239.8 $ 211.0 Credit facility, expires 2020 471.2 329.2 Senior term loans due 2021 119.9 316.5 5 7 /8 % Senior notes due 2021 305.3 306.6 Senior term loans due between 2019 and 2026 449.7 395.6 Other long-term debt 131.6 141.6 Debt issuance costs (4.0 ) (5.1 ) 1,713.5 1,695.4 Less: Current portion of other long-term debt (95.4 ) (85.4 ) Total indebtedness, less current portion $ 1,618.1 $ 1,610.0 At December 31, 2017 , the aggregate scheduled maturities of long-term debt, excluding the current portion of long-term debt, are as follows (in millions): 2019 $ 81.0 2020 721.9 2021 655.4 2022 2.5 Thereafter 157.3 $ 1,618.1 Cash payments for interest were approximately $51.4 million , $58.8 million and $63.0 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. 1.056% Senior Term Loan In December 2014, the Company entered into a term loan with the European Investment Bank, under which the Company borrowed €200.0 million (or approximately $239.8 million as of December 31, 2017 ). The funding was received on January 15, 2015 with a maturity date of January 15, 2020. The Company has the ability to prepay the term loan before its maturity date. Interest is payable on the term loan at 1.056% per annum, payable quarterly in arrears. The term loan contains covenants regarding, among other things, the incurrence of indebtedness and the making of certain payments, as well as commitments regarding amounts of future research and development expenses in Europe, and is subject to acceleration in the events of default. The Company also has to fulfill financial covenants with respect to a net leverage ratio and interest coverage ratio. Credit Facility The Company’s revolving credit and term loan facility consists of an $800.0 million multi-currency revolving credit facility and a €312.0 million (or approximately $374.2 million as of December 31, 2017 ) term loan facility. The maturity date of the credit facility is June 26, 2020. Under the credit facility agreement, interest accrues on amounts outstanding, at the Company’s option, depending on the currency borrowed, at either (1) LIBOR or EURIBOR plus a margin ranging from 1.0% to 1.75% based on the Company’s leverage ratio, or (2) the base rate, which is equal to the higher of (i) the administrative agent’s base lending rate for the applicable currency, (ii) the federal funds rate plus 0.5% , and (iii) one-month LIBOR for loans denominated in U.S. dollars plus 1.0% plus a margin ranging from 0.0% to 0.25% based on the Company’s leverage ratio. As is more fully described in Note 11, the Company entered into an interest rate swap in 2015 to convert the term loan facility’s floating interest rate to a fixed interest rate of 0.33% plus the applicable margin over the remaining life of the term loan facility. The credit facility contains covenants restricting, among other things, the incurrence of indebtedness and the making of certain payments, including dividends, and is subject to acceleration in the event of a default. The Company also has to fulfill financial covenants with respect to a total debt to EBITDA ratio and an interest coverage ratio. As of December 31, 2017 , the Company had $ 471.2 million of outstanding borrowings under the credit facility and the ability to borrow approximately $703.0 million under the facility. Approximately $97.0 million was outstanding under the multi-currency revolving credit facility and €312.0 million (or approximately $374.2 million ) was outstanding under the term loan facility as of December 31, 2017 . As of December 31, 2016 , no amounts were outstanding under the Company’s multi-currency revolving credit facility, and the Company had the ability to borrow approximately $800.0 million under the facility. Approximately €312.0 million (or approximately $ 329.2 million ) was outstanding under the term loan facility as of December 31, 2016 . During 2015, the Company designated its €312.0 million ( $374.2 million at December 31, 2017 ) term loan facility as a hedge of its net investment in foreign operations to offset foreign currency translation gains or losses on the net investment. See Note 11 for additional information about the net investment hedge. Senior Term Loans Due 2021 In April 2016, the Company entered into two term loan agreements with Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (“Rabobank”), in the amount of €100.0 million and €200.0 million , respectively. The €300.0 million of funding was received on April 26, 2016 and was partially used to repay the Company’s former 4½% senior term loan with Rabobank which was due May 2, 2016. The Company received net proceeds of approximately €99.6 million (or approximately $112.2 million ) after debt issuance costs. The provisions of the two term loans were identical in nature. In December 2017, the Company repaid its €200.0 million (or approximately $239.8 million ) term loan. The Company’s €100.0 million (or approximately $119.9 million as of December 31, 2017 ) remains outstanding. The Company had the ability to prepay the term loans before their maturity date on April 26, 2021. Interest is and was payable on the term loans per annum, equal to the EURIBOR plus a margin ranging from 1.0% to 1.75% based on the Company’s net leverage ratio. Interest is and was paid quarterly in arrears. The remaining term loan contains covenants restricting, among other things, the incurrence of indebtedness and the making of certain payments, including dividends, and is subject to acceleration in the event of default. The Company also has to fulfill financial covenants with respect to a total debt to EBITDA ratio and an interest coverage ratio. 5 7 / 8 % Senior Notes The Company’s $305.3 million of 5 7 / 8 % senior notes due December 1, 2021 constitute senior unsecured and unsubordinated indebtedness. Interest is payable on the notes semi-annually in arrears. At any time prior to September 1, 2021, the Company may redeem the notes, in whole or in part from time to time, at its option, at a redemption price equal to the greater of (i) 100% of the principal amount plus accrued and unpaid interest, including additional interest, if any, to, but excluding, the redemption date, or (ii) the sum of the present values of the remaining scheduled payments of principal and interest (exclusive of interest accrued to the date of redemption) discounted to the redemption date at the treasury rate plus 0.5% , plus accrued and unpaid interest, including additional interest, if any. Beginning September 1, 2021, the Company may redeem the notes, in whole or in part from time to time, at its option, at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest, including additional interest, if any. As is more fully described in Note 11, the Company entered into an interest rate swap in 2015 to convert the senior notes’ fixed interest rate to a floating interest rate over the remaining life of the senior notes. During the second quarter of 2016, the Company terminated the interest rate swap. As a result, the Company recorded a deferred gain of approximately $7.3 million associated with the termination, which will be amortized as a reduction to “Interest expense, net” over the remaining term of the 5 7 / 8 % senior notes through December 1, 2021. As of December 31, 2017 and 2016 , the unamortized portion of the deferred gain was approximately $5.3 million and $6.6 million , respectively. The amortization for 2017 and 2016 was approximately $1.3 million and $0.7 million , respectively. Senior Term Loans Due Between 2019 and 2026 In October 2016, the Company borrowed an aggregate amount of €375.0 million (or approximately $449.7 million as of December 31, 2017 ) through a group of seven related term loan agreements. The Company received net proceeds of approximately €373.2 million (or approximately $409.5 million as of October 19, 2016) after debt issuance costs and were used to repay borrowings made under the Company’s revolving credit facility. The provisions of the term loan agreements are identical in nature, with the exception of interest rate terms and maturities. The Company has the ability to prepay the term loans before their maturity dates. Interest is payable on the term loans in arrears either semi-annually or annually as provided below (in millions): Maturity Date Floating or Fixed Interest Rate Interest Rate Interest Payment Term Loan Amount October 19, 2019 Floating EURIBOR + 0.75% Semi-Annually € 1.0 October 19, 2019 Fixed 0.75% Annually 55.0 October 19, 2021 Floating EURIBOR + 1.00% Semi-Annually 25.5 October 19, 2021 Fixed 1.00% Annually 166.5 October 19, 2023 Floating EURIBOR + 1.25% Semi-Annually 1.0 October 19, 2023 Fixed 1.33% Annually 73.5 October 19, 2026 Fixed 1.98% Annually 52.5 € 375.0 The term loans contain covenants restricting, among other things, the incurrence of indebtedness and the making of certain payments, including dividends, and is subject to acceleration in the event of default. Standby Letters of Credit and Similar Instruments The Company has arrangements with various banks to issue standby letters of credit or similar instruments, which guarantee the Company’s obligations for the purchase or sale of certain inventories and for potential claims exposure for insurance coverage. At December 31, 2017 and 2016 , outstanding letters of credit totaled $15.2 million and $17.1 million , respectively. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company sponsors defined benefit pension plans covering certain employees, principally in the United Kingdom, the United States, Germany, Switzerland, Finland, France, Norway and Argentina. The Company also provides certain postretirement health care and life insurance benefits for certain employees, principally in the United States and Brazil. The Company also maintains an Executive Nonqualified Pension Plan (“ENPP”), which provides certain U.S.-based senior executives with retirement income for a period of 15 years or up to a lifetime annuity, if certain requirements are met. Benefits under the ENPP vest if the participant has attained age 50 with at least ten years of service ( five years of which include years of participation in the ENPP), but are not payable until the participant reaches age 65 . The lifetime annuity benefit generally will be available only to participants who retire on or after reaching normal retirement age and otherwise have a vested benefit under the ENPP. The ENPP is an unfunded, nonqualified defined benefit pension plan. Net annual pension costs for the years ended December 31, 2017 , 2016 and 2015 for the Company’s defined benefit pension plans and ENPP are set forth below (in millions): Pension benefits 2017 2016 2015 Service cost $ 17.1 $ 16.2 $ 18.7 Interest cost 20.6 24.6 31.2 Expected return on plan assets (35.9 ) (38.8 ) (44.4 ) Amortization of net actuarial losses 13.4 10.0 8.0 Amortization of prior service cost 1.2 1.0 0.4 Net loss recognized due to settlement 0.2 0.4 0.2 Net gain recognized due to curtailment — (0.1 ) — Special termination benefits — — 0.5 Net annual pension cost $ 16.6 $ 13.3 $ 14.6 The weighted average assumptions used to determine the net annual pension costs for the Company’s defined benefit pension plans and ENPP for the years ended December 31, 2017 , 2016 and 2015 are as follows: 2017 2016 2015 All plans: Weighted average discount rate 2.7 % 3.6 % 3.5 % Weighted average expected long-term rate of return on plan assets 5.8 % 6.8 % 6.8 % Rate of increase in future compensation 1.5%-5.0% 2.0%-5.0% 2.25%-5.0% U.S.-based plans: Weighted average discount rate 4.25 % 4.60 % 4.15 % Weighted average expected long-term rate of return on plan assets (1) 6.0 % 6.0 % 6.0 % Rate of increase in future compensation (2) 5.0 % 5.0 % 5.0 % ___________________________________ (1) Applicable for U.S. funded, qualified plans. (2) Applicable for U.S. unfunded, nonqualified plan. Net annual postretirement benefit costs, and the weighted average discount rate used to determine them, for the years ended December 31, 2017 , 2016 and 2015 are set forth below (in millions, except percentages): Postretirement benefits 2017 2016 2015 Service cost $ 0.1 $ — $ — Interest cost 1.4 1.4 1.3 Amortization of prior service cost 0.2 0.2 0.2 Amortization of net actuarial losses 0.1 — 0.1 Net annual postretirement benefit cost $ 1.8 $ 1.6 $ 1.6 Weighted average discount rate 5.3 % 5.1 % 4.6 % The following tables set forth reconciliations of the changes in benefit obligation, plan assets and funded status as of December 31, 2017 and 2016 (in millions): Pension and ENPP Benefits Postretirement Benefits Change in benefit obligation 2017 2016 2017 2016 Benefit obligation at beginning of year $ 849.8 $ 844.4 $ 28.6 $ 27.3 Service cost 17.1 16.2 0.1 — Interest cost 20.6 24.6 1.4 1.4 Plan participants’ contributions 1.1 1.1 — — Actuarial losses 0.5 121.9 1.8 0.6 Amendments — 3.3 — — Settlements (0.7 ) (3.8 ) — — Curtailments — (0.4 ) — — Benefits paid (42.6 ) (44.1 ) (1.6 ) (1.2 ) Foreign currency exchange rate changes 70.9 (113.4 ) (0.1 ) 0.5 Benefit obligation at end of year $ 916.7 $ 849.8 $ 30.2 $ 28.6 Pension and ENPP Benefits Postretirement Benefits Change in plan assets 2017 2016 2017 2016 Fair value of plan assets at beginning of year $ 601.7 $ 630.7 $ — $ — Actual return on plan assets 47.3 84.4 — — Employer contributions 30.3 31.3 1.6 1.2 Plan participants’ contributions 1.1 1.1 — — Benefits paid (42.6 ) (44.1 ) (1.6 ) (1.2 ) Settlements (0.7 ) (3.8 ) — — Foreign currency exchange rate changes 54.7 (97.9 ) — — Fair value of plan assets at end of year $ 691.8 $ 601.7 $ — $ — Funded status $ (224.9 ) $ (248.1 ) $ (30.2 ) $ (28.6 ) Unrecognized net actuarial losses 360.1 384.7 3.8 2.0 Unrecognized prior service cost 12.2 13.4 3.2 3.4 Accumulated other comprehensive loss (372.3 ) (398.1 ) (7.0 ) (5.4 ) Net amount recognized $ (224.9 ) $ (248.1 ) $ (30.2 ) $ (28.6 ) Amounts recognized in Consolidated Balance Sheets: Other current liabilities (3.9 ) (3.5 ) (1.6 ) (1.5 ) Accrued expenses (2.3 ) (1.7 ) — — Pensions and postretirement health care benefits (noncurrent) (218.7 ) (242.9 ) (28.6 ) (27.1 ) Net amount recognized $ (224.9 ) $ (248.1 ) $ (30.2 ) $ (28.6 ) The following table summarizes the activity in accumulated other comprehensive loss related to the Company’s ENPP and defined pension and postretirement benefit plans during the years ended December 31, 2017 and 2016 (in millions): Before-Tax Amount Income Tax After-Tax Amount Accumulated other comprehensive loss as of December 31, 2015 $ (336.6 ) $ (87.6 ) $ (249.0 ) Prior service cost arising during the year (3.3 ) (0.7 ) (2.6 ) Net loss recognized due to settlement 0.5 0.1 0.4 Net gain recognized due to curtailment (0.1 ) — (0.1 ) Net actuarial loss arising during the year (76.5 ) (13.6 ) (62.9 ) Amortization of prior service cost 1.2 0.1 1.1 Amortization of net actuarial losses 10.0 1.4 8.6 Accumulated other comprehensive loss as of December 31, 2016 $ (404.8 ) $ (100.3 ) $ (304.5 ) Net loss recognized due to settlement 0.3 0.1 0.2 Net actuarial gain arising during the year 9.0 2.4 6.6 Amortization of prior service cost 1.4 0.1 1.3 Amortization of net actuarial losses 13.5 2.2 11.3 Accumulated other comprehensive loss as of December 31, 2017 $ (380.6 ) $ (95.5 ) $ (285.1 ) As of December 31, 2017 , the Company’s accumulated other comprehensive loss included net actuarial losses of approximately $360.1 million and net prior service cost of approximately $12.2 million related to the Company’s defined benefit pension plans and ENPP. The estimated net actuarial losses and net prior service cost for the defined benefit pension plans and ENPP expected to be amortized from the Company’s accumulated other comprehensive loss during the year ended December 31, 2018 are approximately $12.2 million and $1.2 million , respectively. As of December 31, 2017 , the Company’s accumulated other comprehensive loss included net actuarial losses of approximately $3.8 million and net prior service cost of approximately $3.2 million related to the Company’s U.S. and Brazilian postretirement health care benefit plans. The estimated net actuarial losses and net prior service cost for postretirement health care benefit plans expected to be amortized from the Company’s accumulated other comprehensive loss during the year ended December 31, 2018 are approximately $0.1 million and $0.2 million , respectively. The aggregate projected benefit obligation, accumulated benefit obligation and fair value of plan assets for defined benefit pension plans, ENPP and other postretirement plans with accumulated benefit obligations in excess of plan assets were $946.0 million , $891.2 million and $690.8 million , respectively, as of December 31, 2017 , and $877.6 million , $823.8 million and $600.9 million , respectively, as of December 31, 2016 . The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for the Company’s U.S.-based defined benefit pension plans and ENPP with accumulated benefit obligations in excess of plan assets were $129.6 million , $111.5 million and $36.6 million , respectively, as of December 31, 2017 , and $118.1 million , $101.9 million and $36.2 million , respectively, as of December 31, 2016 . The Company’s accumulated comprehensive loss as of December 31, 2017 reflects a reduction in equity of $379.3 million , net of taxes of $95.0 million , primarily related to the Company’s U.K. pension plan, where the projected benefit obligation exceeded the plan assets. In addition, the Company’s accumulated comprehensive loss as of December 31, 2017 reflects a reduction in equity of approximately $1.3 million , net of taxes of $0.5 million , related to the Company’s GIMA joint venture. The amount represents 50% of GIMA’s unrecognized net actuarial losses and unrecognized prior service cost associated with its pension plan. In addition, GIMA recognized a net actuarial loss due to settlements during 2017 of approximately $0.1 million . The Company’s accumulated comprehensive loss as of December 31, 2016 reflected a reduction in equity of $403.5 million , net of taxes of $99.8 million , primarily related to the Company’s U.K. pension plan, in which the projected benefit obligation exceeded the plan assets. In addition, the Company’s accumulated comprehensive loss as of December 31, 2016 reflected a reduction in equity of approximately $1.3 million , net of taxes of $0.5 million , related to the Company’s GIMA joint venture. This amount represented 50% of GIMA’s unrecognized net actuarial losses and unrecognized prior service cost associated with its pension plan. In addition, GIMA recognized a net actuarial loss due to settlements during 2016 of approximately $0.1 million . The Company’s defined benefit pension obligation has been reflected based on the manner in which its defined benefit plans are being administered. The obligation and resulting liability is calculated employing both actuarial and legal assumptions. These assumptions include, but are not limited to, future inflation, the return on pension assets, discount rates, life expectancy and potential salary increases. There are also assumptions related to the manner in which individual benefit plan benefits are calculated, which are legal in nature and include, but are not limited to, member eligibility, years of service and the uniformity of both guaranteed minimum pension benefits and member normal retirement ages for men and women. In the event that any of these assumptions or the administration approach are proven to be different from the Company’s current interpretations and approach, there could be material increases in the Company’s defined benefit pension obligation and the related amounts and timing of future contributions to be paid by the Company. The weighted average assumptions used to determine the benefit obligation for the Company’s defined benefit pension plans and ENPP as of December 31, 2017 and 2016 are as follows: 2017 2016 All plans: Weighted average discount rate 2.5 % 2.7 % Rate of increase in future compensation 1.75%-5.0% 1.5%-5.0% U.S.-based plans: Weighted average discount rate 3.70 % 4.25 % Rate of increase in future compensation (1) 5.0 % 5.0 % ____________________________________ (1) Applicable for U.S. unfunded, nonqualified plan. The weighted average discount rate used to determine the benefit obligation for the Company’s postretirement benefit plans for the years ended December 31, 2017 and 2016 was 4.9% and 5.3% , respectively. For the years ended December 31, 2017 , 2016 and 2015 , the Company used a globally consistent methodology to set the discount rate in the countries where its largest benefit obligations exist. In the United States, the United Kingdom and the Euro Zone, the Company constructed a hypothetical bond portfolio of high-quality corporate bonds and then applied the cash flows of the Company’s benefit plans to those bond yields to derive a discount rate. The bond portfolio and plan-specific cash flows vary by country, but the methodology in which the portfolio is constructed is consistent. In the United States, the bond portfolio is large enough to result in taking a “settlement approach” to derive the discount rate, in which high-quality corporate bonds are assumed to be purchased and the resulting coupon payments and maturities are used to satisfy the Company’s U.S. pension plans’ projected benefit payments. In the United Kingdom and the Euro Zone, the discount rate is derived using a “yield curve approach,” in which an individual spot rate, or zero coupon bond yield, for each future annual period is developed to discount each future benefit payment and, thereby, determine the present value of all future payments. Under the settlement and yield curve approaches, the discount rate is set to equal the single discount rate that produces the same present value of all future payments. Effective January 1, 2016 , the Company adopted a spot yield curve to determine the discount rate in the United Kingdom to measure the plan’s service cost and interest cost for the year ended December 31, 2016 . Previously, the Company had utilized a single weighted-average discount rate derived from the “yield curve approach” to measure the plan’s benefit obligation, service cost and interest cost. Since 2016 , the Company has elected to utilize an approach that discounts the individual expected cash flows underlying benefit obligation and service cost using the applicable spot rates derived from the yield curve over the projected cash flow period. For measuring the expected U.S. postretirement benefit obligation at December 31, 2017 , the Company assumed a 6.75% health care cost trend rate for 2018 decreasing to 5.0% by 2025 . For measuring the expected U.S. postretirement benefit obligation at December 31, 2016 , the Company assumed a 7.0% health care cost trend rate for 2017 decreasing to 5.0% by 2025. For measuring the Brazilian postretirement benefit plan obligation at December 31, 2017 , the Company assumed an 11.0% health care cost trend rate for 2018 , decreasing to 5.3% by 2029 . For measuring the Brazilian postretirement benefit plan obligation at December 31, 2016 , the Company assumed an 11.8% health care cost trend rate for 2017 , decreasing to 6.1% by 2028 . Changing the assumed health care cost trend rates by one percentage point each year and holding all other assumptions constant would have had the following effect to service and interest cost for 2017 and the accumulated postretirement benefit obligation for both the U.S. and Brazilian postretirement plans at December 31, 2017 (in millions): One Percentage Point Increase One Percentage Point Decrease Effect on service and interest cost $ 0.2 $ (0.1 ) Effect on accumulated postretirement benefit obligation $ 3.9 $ (3.2 ) The Company currently estimates its minimum contributions and benefit payments to its U.S.-based underfunded defined benefit pension plans and unfunded ENPP for 2018 will aggregate approximately $3.1 million . The Company currently estimates its benefit payments for 2018 to its U.S.-based postretirement health care and life insurance benefit plans will aggregate approximately $1.6 million and its benefit payments for 2018 to its Brazilian postretirement health care benefit plans will aggregate approximately less than $0.1 million . The Company currently estimates its minimum contributions for underfunded plans and benefit payments for unfunded plans for 2018 to its non-U.S.-based defined benefit pension plans will aggregate approximately $29.8 million , of which approximately $20.6 million relates to its U.K. pension plan. During 2017 , approximately $43.3 million of benefit payments were made related to the Company’s defined benefit pension plans and ENPP. At December 31, 2017 , the aggregate expected benefit payments for the Company’s defined benefit pension plans and ENPP are as follows (in millions): 2018 $ 47.6 2019 46.6 2020 48.5 2021 49.4 2022 50.0 2023 through 2027 271.6 $ 513.7 During 2017 , approximately $1.6 million of benefit payments were made related to the Company’s U.S. and Brazilian postretirement benefit plans. At December 31, 2017 , the aggregate expected benefit payments for the Company’s U.S. and Brazilian postretirement benefit plans are as follows (in millions): 2018 $ 1.6 2019 1.7 2020 1.7 2021 1.8 2022 1.8 2023 through 2027 9.4 $ 18.0 Investment Strategy and Concentration of Risk The weighted average asset allocation of the Company’s U.S. pension benefit plans as of December 31, 2017 and 2016 are as follows: Asset Category 2017 2016 Large and small cap domestic equity securities 31 % 29 % International equity securities 12 % 11 % Domestic fixed income securities 43 % 42 % Other investments 14 % 18 % Total 100 % 100 % The weighted average asset allocation of the Company’s non-U.S. pension benefit plans as of December 31, 2017 and 2016 are as follows: Asset Category 2017 2016 Equity securities 40 % 39 % Fixed income securities 53 % 54 % Other investments 7 % 7 % Total 100 % 100 % The Company categorizes its pension plan assets into one of three levels based on the assumptions used in valuing the asset. See Note 13 for a discussion of the fair value hierarchy as per the guidance in ASC 820, “Fair Value Measurements” (“ASC 820”). The Company’s valuation techniques are designed to maximize the use of observable inputs and minimize the use of unobservable inputs. The Company uses the following valuation methodologies to measure the fair value of its pension plan assets: Equity Securities : Equity securities are valued on the basis of the closing price per unit on each business day as reported on the applicable exchange. Fixed Income : Fixed income securities are valued using the closing prices in the active market in which the fixed income investment trades. Fixed income funds are valued using the net asset value of the fund, which is based on the fair value of the underlying securities. Cash : These investments primarily consist of short-term investment funds which are valued using the net asset value. Alternative Investments : These investments are reported at fair value as determined by the general partner of the alternative investment. The “market approach” valuation technique is used to value investments in these funds. The funds typically are open-end funds as they generally offer subscription and redemption options to investors. The frequency of such subscriptions or redemptions is dictated by each fund’s governing documents. The amount of liquidity provided to investors in a particular fund generally is consistent with the liquidity and risk associated with the underlying portfolio (i.e., the more liquid the investments in the portfolio, the greater the liquidity provided to investors). Liquidity of individual funds varies based on various factors and may include “gates,” “holdbacks” and “side pockets” imposed by the manager of the fund, as well as redemption fees that may also apply. Investments in these funds typically are valued utilizing the net asset valuations provided by their underlying investment managers, general partners or administrators. The funds consider subscription and redemption rights, including any restrictions on the disposition of the interest, in its determination of the fair value. Insurance Contracts : Insurance contracts are valued using current prevailing interest rates. The fair value of the Company’s pension assets as of December 31, 2017 is as follows (in millions): Total Level 1 Level 2 Level 3 Equity securities: Global equities $ 121.7 $ 121.7 $ — $ — Non-U.S. equities 4.3 4.3 — — U.K. equities 129.9 129.9 — — U.S. large cap equities 6.9 6.9 — — U.S. small cap equities 4.4 4.4 — — Total equity securities 267.2 267.2 — — Fixed income: Aggregate fixed income 136.0 136.0 — — International fixed income 214.4 214.4 — — Total fixed income share (1) 350.4 350.4 — — Alternative investments: Private equity fund 2.4 — — 2.4 Hedge funds measured at net asset value (4) 34.8 — — — Total alternative investments (2) 37.2 — — 2.4 Miscellaneous funds (3) 25.4 — — 25.4 Cash and equivalents measured at net asset value (4) 11.6 — — — Total assets $ 691.8 $ 617.6 $ — $ 27.8 ______________________________________ (1) 30% of “fixed income” securities are in investment-grade corporate bonds; 29% are in government treasuries; 15% are in foreign securities; 13% are in high-yield securities; and 13% are in other various fixed income securities. (2) 39% of “alternative investments” are in relative value funds; 26% are in long-short equity funds; 21% are in event-driven funds; 8% are distributed in hedged and non-hedged funds; and 6% are in credit funds. (3) “Miscellaneous funds” is comprised of insurance contracts in Finland, Norway and Switzerland. (4) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The following is a reconciliation of Level 3 assets as of December 31, 2017 (in millions): Total Alternative Investments Miscellaneous Funds Beginning balance as of December 31, 2016 $ 23.8 $ 2.4 $ 21.4 Actual return on plan assets: (a) Relating to assets still held at reporting date (2.3 ) (0.1 ) (2.2 ) (b) Relating to assets sold during period — — — Purchases, sales and /or settlements 3.4 0.1 3.3 Foreign currency exchange rate changes 2.9 — 2.9 Ending balance as of December 31, 2017 $ 27.8 $ 2.4 $ 25.4 The fair value of the Company’s pension assets as of December 31, 2016 is as follows (in millions): Total Level 1 Level 2 Level 3 Equity securities: Global equities $ 103.6 $ 103.6 $ — $ — Non-U.S. equities 4.1 4.1 — — U.K. equities 109.1 109.1 — — U.S. large cap equities 6.2 6.2 — — U.S. small cap equities 4.3 4.3 — — Total equity securities 227.3 227.3 — — Fixed income: Aggregate fixed income 118.0 118.0 — — International fixed income 191.9 191.9 — — Total fixed income share (1) 309.9 309.9 — — Alternative investments: Private equity fund 2.4 — — 2.4 Hedge funds measured at net asset value (4) 34.4 — — — Total alternative investments (2) 36.8 — — 2.4 Miscellaneous funds (3) 21.4 — — 21.4 Cash and equivalents measured at net asset value (4) 6.3 — — — Total assets $ 601.7 $ 537.2 $ — $ 23.8 _______________________________________ (1) 31% of “fixed income” securities are in foreign securities; 25% are in government treasuries; 19% are in investment-grade corporate bonds; 13% are in high-yield securities; and 12% are in other various fixed income securities. (2) 32% of “alternative investments” are in relative value funds; 27% are in long-short equity funds; 23% are in event-driven funds; 12% are distributed in hedged and non-hedged funds; and 6% are in credit funds. (3) “Miscellaneous funds” is comprised of insurance contracts in Finland, Norway and Switzerland. (4) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The following is a reconciliation of Level 3 assets as of December 31, 2016 (in millions): Total Alternative Investments Miscellaneous Funds Beginning balance as of December 31, 2015 $ 24.1 $ 2.4 $ 21.7 Actual return on plan assets: (a) Relating to assets still held at reporting date 1.0 — 1.0 (b) Relating to assets sold during period — — — Purchases, sales and /or settlements (0.8 ) — (0.8 ) Foreign currency exchange rate changes (0.5 ) — (0.5 ) Ending balance as of December 31, 2016 $ 23.8 $ 2.4 $ 21.4 All tax-qualified pension fund investments in the United States are held in the AGCO Corporation Master Pension Trust. The Company’s global pension fund strategy is to diversify investments across broad categories of equity and fixed income securities with appropriate use of alternative investment categories to minimize risk and volatility. The primary investment objective of the Company’s pension plans is to secure participant retirement benefits. As such, the key objective in the pension plans’ financial management is to promote stability and, to the extent appropriate, growth in funded status. The investment strategy for the plans’ portfolio of assets balances the requirement to generate returns with the need to control risk. The asset mix is recognized as the primary mechanism to influence the reward and risk structure of the pension fund investments in an effort to accomplish the plans’ funding objectives. The overall investment strategy for the U.S.-based pension plans is to achieve a mix of approximately 15% of assets for the near-term benefit payments and 85% for longer-term growth. The overall U.S. pension funds invest in a broad diversification of asset types. The Company’s U.S. target allocation of retirement fund investments is 30% large- and small-cap domestic equity securities, 12% international equity securities, 44% broad fixed income securities and 14% in alternative investments. The Company has noted that over very long periods, this mix of investments would achieve an average return of approximately 6.4% . In arriving at the choice of an expected return assumption of 6.0% for its U.S. plans for the year ended December 31, 2018 , the Company has tempered this historical indicator with lower expectations for returns and changes to investments in the future as well as the administrative costs of the plans. The overall investment strategy for the non-U.S. based pension plans is to achieve a mix of approximately 30% of assets for the near-term benefit payments and 70% for longer-term growth. The overall non-U.S. pension funds invest in a broad diversification of asset types. The Company’s non-U.S. target allocation of retirement fund investments is 40% equity securities, 55% broad fixed income investments and 5% in alternative investments. The majority of the Company’s non-U.S. pension fund investments are related to the Company’s pension plan in the United Kingdom. The Company has noted that over very long periods, this mix of investments would achieve an average return of approximately 6.0% . In arriving at the choice of an expected return assumption of 5.5% for its U.K.-based plans for the year ended December 31, 2018 , the Company has tempered this historical indicator with lower expectations for returns and changes to investments in the future as well as the administrative costs of the plans. Equity securities primarily include investments in large-cap and small-cap companies located across the globe. Fixed income securities include corporate bonds of companies from diversified industries, mortgage-backed securities, agency mortgages, asset-backed securities and government securities. Alternative and other assets include investments in hedge fund of funds that follow diversified investment strategies. To date, the Company has not invested pension funds in its own stock and has no intention of doing so in the future. Within each asset class, careful consideration is given to balancing the portfolio among industry sectors, geographies, interest rate sensitivity, dependence on economic growth, currency and other factors affecting investment returns. The assets are managed by professional investment firms, who are bound by precise mandates and are measured against specific benchmarks. Among asset managers, consideration is given, among others, to balancing security concentration, issuer concentration, investment style and reliance on particular active investment strategies. The Company participates in a small number of multiemployer plans in the Netherlands and Sweden. The Company has assessed and determined that none of the multiemployer plans which it participates in are individually, or in the aggregate, significant to the Company’s Consolidated Financial Statements. The Company does not expect to incur a withdrawal liability or expect to significantly increase its contributions over the remainder of the multiemployer plans’ contract periods. The Company maintains separate defined contribution plans covering certain employees, primarily in the United States, the United Kingdom and Brazil. Under the plans, the Company contributes a specified percentage of each eligible employee’s compensation. The Company contributed approximately $12.3 million , $11.6 million and $12.0 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Common Stock At December 31, 2017 , the Company had 150,000,000 authorized shares of common stock with a par value of $0.01 per share, with approximately 79,553,825 shares of common stock outstanding and approximately 4,053,539 shares reserved for issuance under the Company’s 2006 Long-Term Incentive Plan (the “2006 Plan”) (Note 10). Share Repurchase Program During 2012, 2013, 2014 and 2016, the Company’s Board of Directors approved several share repurchase authorizations under which the Company is permitted to repurchase up to $1,350.0 million of shares of its common stock. During 2016 and 2015 , the Company repurchased 4,413,250 and 5,541,930 shares of its common stock, respectively, for approximately $212.5 million and $287.5 million , respectively, either through Accelerated Share Repurchase (“ASR”) agreements with financial institutions or through open market transactions. During 2017, the Company received approximately 70,464 shares associated with the remaining balance of shares to be delivered under an ASR agreement that was completed in November 2016. All shares received under the ASR agreements were retired upon receipt, and the excess of the purchase price over par value per share was recorded to “Additional paid-in capital” within the Company’s Consolidated Balance Sheets. As of December 31, 2017 , the remaining amount authorized to be repurchased is approximately $331.4 million . The authorization for $300.0 million of this amount will expire in December 2019. The remaining amount authorized has no expiration date. Dividends The Company’s Board of Directors has declared and the Company has paid quarterly cash dividends of $0.12 per common share beginning in the first quarter of 2015, $0.13 per common share beginning the first quarter of 2016, and $0.14 per common share beginning the first quarter of 2017, respectively, and on January 25, 2018, the Company’s Board of Directors approved an increase in the quarterly dividend to $0.15 per common share beginning the first quarter of 2018. The following table sets forth changes in accumulated other comprehensive loss by component, net of tax, attributed to AGCO Corporation and its subsidiaries for the years ended December 31, 2017 and 2016 (in millions): Defined Benefit Pension Plans Cumulative Translation Adjustment Deferred Net Gains (Losses) on Derivatives Total Accumulated other comprehensive loss, December 31, 2015 $ (249.0 ) $ (1,209.2 ) $ (2.0 ) $ (1,460.2 ) Other comprehensive loss before reclassifications (65.2 ) 80.8 (7.7 ) 7.9 Net losses reclassified from accumulated other comprehensive loss 9.7 — 1.0 10.7 Other comprehensive (loss) income, net of reclassification adjustments (55.5 ) 80.8 (6.7 ) 18.6 Accumulated other comprehensive loss, December 31, 2016 (304.5 ) (1,128.4 ) (8.7 ) (1,441.6 ) Other comprehensive income before reclassifications 6.8 56.6 2.0 65.4 Net losses reclassified from accumulated other comprehensive loss 12.6 — 2.0 14.6 Other comprehensive income, net of reclassification adjustments 19.4 56.6 4.0 80.0 Accumulated other comprehensive loss, December 31, 2017 $ (285.1 ) $ (1,071.8 ) $ (4.7 ) $ (1,361.6 ) The following table sets forth reclassification adjustments out of accumulated other comprehensive loss by component attributed to AGCO Corporation and its subsidiaries for the years ended December 31, 2017 and 2016 (in millions): Details about Accumulated Other Comprehensive Loss Components Amount Reclassified from Accumulated Other Comprehensive Loss Affected Line Item within the Consolidated Statements of Operations Year ended December 31, 2017 (1) Year ended December 31, 2016 (1) Derivatives: Net gains on foreign currency contracts $ (0.2 ) $ (1.0 ) Cost of goods sold Net losses on interest rate contract 2.4 2.0 Interest expense, net Reclassification before tax 2.2 1.0 (0.2 ) — Income tax provision Reclassification net of tax $ 2.0 $ 1.0 Defined benefit pension plans: Amortization of net actuarial losses $ 13.5 $ 10.0 (2) Amortization of prior service cost 1.4 1.2 (2) Reclassification before tax 14.9 11.2 (2.3 ) (1.5 ) Income tax provision Reclassification net of tax $ 12.6 $ 9.7 Net losses reclassified from accumulated other comprehensive loss $ 14.6 $ 10.7 ____________________________________ (1) (Gains) losses included within the Consolidated Statements of Operations for the years ended December 31, 2017 and 2016 , respectively. (2) These accumulated other comprehensive loss components are included in the computation of net periodic pension and postretirement benefit cost. See Note 8 to the Company’s Consolidated Financial Statements. |
Stock Incentive Plan
Stock Incentive Plan | 12 Months Ended |
Dec. 31, 2017 | |
Share-based Compensation [Abstract] | |
Stock Incentive Plan | Stock Incentive Plan Under the 2006 Plan, up to 10,000,000 shares of AGCO common stock may be issued. As of December 31, 2017 , of the 10,000,000 shares reserved for issuance under the 2006 Plan, approximately 4,053,539 shares were available for grant, assuming the maximum number of shares are earned related to the performance award grants discussed below. The 2006 Plan allows the Company, under the direction of the Board of Directors’ Compensation Committee, to make grants of performance shares, stock appreciation rights, stock options, restricted stock units and restricted stock awards to employees, officers and non-employee directors of the Company. Long-Term Incentive Plan and Related Performance Awards The Company’s primary long-term incentive plan is a performance share plan that provides for awards of shares of the Company’s common stock based on achieving financial targets, such as targets for earnings per share, return on invested capital, operating margin and selling, general and administrative expenses and overhead levels, as determined by the Company’s Board of Directors. The stock awards under the 2006 Plan are earned over a performance period, and the number of shares earned is determined based on annual cumulative or average results for the specified period, depending on the measurement. Performance periods for the Company’s primary long-term incentive plan are consecutive and overlapping three -year cycles, and performance targets are set at the beginning of each cycle. The primary long-term incentive plan provides for participants to earn 33% to 200% of the target awards depending on the actual performance achieved, with no shares earned if performance is below the established minimum target. Awards earned under the 2006 Plan are paid in shares of common stock at the end of each performance period. The compensation expense associated with these awards is amortized ratably over the vesting or performance period based on the Company’s projected assessment of the level of performance that will be achieved and earned. Compensation expense recorded during 2017 , 2016 and 2015 with respect to awards granted was based upon the stock price as of the grant date. The weighted average grant-date fair value of performance awards granted under the 2006 Plan during 2017 , 2016 and 2015 was as follows: Years Ended December 31, 2017 2016 2015 Weighted average grant-date fair value $ 61.94 $ 47.93 $ 45.54 During 2017 , the Company granted 539,598 performance awards related to varying performance periods. The awards granted assume the maximum target level of performance is achieved. Performance award transactions during 2017 were as follows and are presented as if the Company were to achieve its maximum levels of performance under the plan: Shares awarded but not earned at January 1 1,982,120 Shares awarded 539,598 Shares forfeited or unearned (876,640 ) Shares earned and vested — Shares awarded but not earned at December 31 1,645,078 The 2006 Plan allows for the participant to have the option of forfeiting a portion of the shares awarded in lieu of a cash payment contributed to the participant’s tax withholding to satisfy the participant’s statutory minimum federal, state and employment taxes which would be payable at the time of grant. Based on the level of performance achieved as of December 31, 2017 and 2016 , no shares were earned and vested or issued. During 2017 , the Company recorded approximately $4.8 million of accelerated stock compensation expense associated with a stock award declined by the Company’s Chief Executive Officer. As of December 31, 2017 , the total compensation cost related to unearned performance awards not yet recognized, assuming the Company’s current projected assessment of the level of performance that will be achieved and earned, was approximately $35.5 million , and the weighted average period over which it is expected to be recognized is approximately two years. This estimate is based on the current projected levels of performance of outstanding awards. The compensation cost not yet recognized could be higher or lower based on actual achieved levels of performance. Restricted Stock Units During the year ended December 31, 2017 , the Company granted 111,166 restricted stock unit (“RSU”) awards. These awards entitle the participant to receive one share of the Company’s common stock for each RSU granted and vest one-third per year over a three -year requisite service period. Dividends on grants prior to January 2016 will accrue on all unvested grants until the end of each vesting date within this grant’s three -year requisite service period. Subsequent grants do not accrue dividends. The compensation expense associated with these awards is being amortized ratably over the requisite service period for the awards that are expected to vest. The weighted average grant-date fair value of the RSUs granted under the 2006 Plan during the year ended December 31, 2017 and 2016 was $61.99 and $45.10 , respectively. RSU transactions during the year ended December 31, 2017 were as follows: Shares awarded but not vested at January 1 222,730 Shares awarded 111,166 Shares forfeited (7,783 ) Shares vested (88,645 ) Shares awarded but not vested at December 31 237,468 As of December 31, 2017 , the total compensation cost related to the unvested RSUs not yet recognized was approximately $6.9 million , and the weighted average period over which it is expected to be recognized is approximately two years. Stock-settled Appreciation Rights In addition to the performance share plans, certain executives and key managers are eligible to receive grants of SSARs. The SSARs provide a participant with the right to receive the aggregate appreciation in stock price over the market price of the Company’s common stock at the date of grant, payable in shares of the Company’s common stock. The participant may exercise his or her SSARs at any time after the grant is vested but no later than seven years after the date of grant. The SSARs vest ratably over a four-year period from the date of grant. SSAR award grants made to certain executives and key managers under the 2006 Plan are made with the base price equal to the price of the Company’s common stock on the date of grant. The Company recorded stock compensation expense of approximately $3.0 million , $3.8 million and $5.0 million associated with SSAR award grants during 2017 , 2016 and 2015 , respectively. The compensation expense associated with these awards is being amortized ratably over the vesting period. The Company estimated the fair value of the grants using the Black-Scholes option pricing model. The weighted average grant-date fair value of SSARs granted under the 2006 Plan and the weighted average assumptions under the Black-Scholes option model were as follows for the years ended December 31, 2017 , 2016 and 2015 : Years Ended December 31, 2017 2016 2015 Weighted average grant-date fair value $ 11.45 $ 7.98 $ 7.41 Weighted average assumptions under Black-Scholes option model: Expected life of awards (years) 3.0 3.0 3.0 Risk-free interest rate 1.5 % 1.1 % 0.9 % Expected volatility 25.9 % 25.9 % 25.9 % Expected dividend yield 0.9 % 1.1 % 1.1 % SSAR transactions during the year ended December 31, 2017 were as follows: SSARs outstanding at January 1 1,458,611 SSARs granted 286,200 SSARs exercised (670,269 ) SSARs canceled or forfeited (14,350 ) SSARs outstanding at December 31 1,060,192 SSAR price ranges per share: Granted $ 63.47-70.41 Exercised 32.01-55.23 Canceled or forfeited 32.01-63.47 Weighted average SSAR exercise prices per share: Granted $ 63.51 Exercised 52.04 Canceled or forfeited 48.42 Outstanding at December 31 52.48 At December 31, 2017 , the weighted average remaining contractual life of SSARs outstanding was approximately five years. As of December 31, 2017 , the total compensation cost related to unvested SSARs not yet recognized was approximately $4.3 million and the weighted-average period over which it is expected to be recognized is approximately two years. The following table sets forth the exercise price range, number of shares, weighted average exercise price, and remaining contractual lives by groups of similar price as of December 31, 2017 : SSARs Outstanding SSARs Exercisable Range of Exercise Prices Number of Shares Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Exercisable as of December 31, 2017 Weighted Average Exercise Price $43.39-$52.94 614,600 4.1 $ 46.35 248,975 $ 47.62 $55.07-$70.41 445,592 5.0 $ 60.94 99,067 $ 57.11 1,060,192 348,042 $ 50.32 The total fair value of SSARs vested during 2017 was approximately $3.5 million . There were 712,150 SSARs that were not vested as of December 31, 2017 . The total intrinsic value of outstanding and exercisable SSARs as of December 31, 2017 was $20.1 million and $7.3 million , respectively. The total intrinsic value of SSARs exercised during 2017 was approximately $10.8 million . The excess tax benefit realized for tax deductions in the United States related to the exercise of SSARs and vesting of RSU awards under the 2006 Plan was approximately $0.1 million for the year ended December 31, 2017 . The excess tax benefit realized for tax deductions in the United States related to the exercise of SSARs and vesting of RSU awards under the 2006 Plan was less than $0.1 million for the year ended December 31, 2016 . The excess tax benefit realized for tax deductions in the United States related to the exercise of SSARs and vesting of RSU awards under the 2006 Plan was approximately $0.7 million for the year ended December 31, 2015 . The Company realized an insignificant tax benefit from the exercise of SSARs, vesting of performance awards and vesting of RSU awards in certain foreign jurisdictions during the years ended December 31, 2017 , 2016 and 2015 . On January 23, 2018, the Company granted 220,900 performance award shares (subject to the Company achieving future target levels of performance), 157,700 SSARs and 111,119 of restricted stock units under the 2006 Plan. Director Restricted Stock Grants Pursuant to the 2006 Plan, all non-employee directors receive annual restricted stock grants of the Company’s common stock. All restricted stock grants made to the Company’s directors are restricted as to transferability for a period of one year. In the event a director departs from the Company’s Board of Directors, the non-transferability period expires immediately. The plan allows each director to have the option of forfeiting a portion of the shares awarded in lieu of a cash payment contributed to the participant’s tax withholding to satisfy the statutory minimum federal, state and employment taxes that would be payable at the time of grant. The 2017 grant was made on April 27, 2017 and equated to 14,968 shares of common stock, of which 12,066 shares of common stock were issued, after shares were withheld for taxes. The Company recorded stock compensation expense of approximately $1.0 million during 2017 associated with these grants. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedges, Assets [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Company has significant manufacturing operations in the United States, France, Germany, Finland and Brazil, and it purchases a portion of its tractors, combines and components from third-party foreign suppliers, primarily in various European countries and in Japan. The Company also sells products in approximately 150 countries throughout the world. The Company’s most significant transactional foreign currency exposures are the Euro, Brazilian real and the Canadian dollar in relation to the United States dollar, and the Euro in relation to the British pound. The Company attempts to manage its transactional foreign exchange exposure by hedging foreign currency cash flow forecasts and commitments arising from the anticipated settlement of receivables and payables and from future purchases and sales. Where naturally offsetting currency positions do not occur, the Company hedges certain, but not all, of its exposures through the use of foreign currency contracts. The Company’s translation exposure resulting from translating the financial statements of foreign subsidiaries into United States dollars may be partially hedged from time to time. The Company’s most significant translation exposures are the Euro, the British pound and the Brazilian real in relation to the United States dollar and the Swiss franc in relation to the Euro. When practical, the translation impact is reduced by financing local operations with local borrowings. The Company uses floating rate and fixed rate debt to finance its operations. The floating rate debt obligations expose the Company to variability in interest payments due to changes in the EURIBOR and LIBOR benchmark interest rates. The Company believes it is prudent to limit the variability of a portion of its interest payments, and to meet that objective, the Company periodically enters into interest rate swaps to manage the interest rate risk associated with the Company’s borrowings. The Company designates interest rate contracts used to convert the interest rate exposure on a portion of the Company’s debt portfolio from a floating rate to a fixed rate as cash flow hedges, while those contracts converting the Company’s interest rate exposure from a fixed rate to a floating rate are designated as fair value hedges. The Company’s senior management establishes the Company’s foreign currency and interest rate risk management policies. These policies are reviewed periodically by the Finance Committee of the Company’s Board of Directors. The policies allow for the use of derivative instruments to hedge exposures to movements in foreign currency and interest rates. The Company’s policies prohibit the use of derivative instruments for speculative purposes. All derivatives are recognized on the Company’s Consolidated Balance Sheets at fair value. On the date the derivative contract is entered into, the Company designates the derivative as either (1) a cash flow hedge of a forecasted transaction, (2) a fair value hedge of a recognized liability, (3) a hedge of a net investment in a foreign operation, or (4) a non-designated derivative instrument. The Company formally documents all relationships between hedging instruments and hedged items, as well as the risk management objectives and strategy for undertaking various hedge transactions. The Company formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flow of hedged items or the net investment hedges in foreign operations. When it is determined that a derivative is no longer highly effective as a hedge, hedge accounting is discontinued on a prospective basis. The Company categorizes its derivative assets and liabilities into one of three levels based on the assumptions used in valuing the asset or liability. See Note 13 for a discussion of the fair value hierarchy as per the guidance in ASC 820. The Company’s valuation techniques are designed to maximize the use of observable inputs and minimize the use of unobservable inputs. Counterparty Risk The Company regularly monitors the counterparty risk and credit ratings of all the counterparties to the derivative instruments. The Company believes that its exposures are appropriately diversified across counterparties and that these counterparties are creditworthy financial institutions. If the Company perceives any risk with a counterparty, then the Company would cease to do business with that counterparty. There have been no negative impacts to the Company from any non-performance of any counterparties. Derivative Transactions Designated as Hedging Instruments Cash Flow Hedges Foreign Currency Contracts The Company uses cash flow hedges to minimize the variability in cash flows of assets or liabilities or forecasted transactions caused by fluctuations in foreign currency exchange rates. The changes in the fair values of these cash flow hedges are recorded in accumulated other comprehensive loss and are subsequently reclassified into “Cost of goods sold” during the period the sales and purchases are recognized. These amounts offset the effect of the changes in foreign currency rates on the related sale and purchase transactions. During 2017 , 2016 and 2015 , the Company designated certain foreign currency contracts as cash flow hedges of expected future sales and purchases. The total notional value of derivatives that were designated as cash flow hedges was $96.8 million and $111.2 million as of December 31, 2017 and 2016 , respectively. Interest Rate Contract The Company monitors the mix of short-term and long-term debt regularly. From time to time, the Company manages the risk to interest rate fluctuations through the use of derivative financial instruments. During 2015, the Company entered into an interest rate swap instrument with a notional amount of €312.0 million (or approximately $374.2 million at December 31, 2017 ) and an expiration date of June 26, 2020. The swap was designated and accounted for as a cash flow hedge. Under the swap agreement, the Company pays a fixed interest rate of 0.33% plus the applicable margin, and the counterparty to the agreement pays a floating interest rate based on the three-month EURIBOR. Changes in the fair value of the interest rate swap are recorded in accumulated other comprehensive loss and are subsequently reclassified into “Interest expense, net” as a rate adjustment in the same period in which the related interest on the Company’s floating rate term loan facility affects earnings. The following table summarizes the after-tax impact that changes in the fair value of derivatives designated as cash flow hedges had on accumulated other comprehensive loss and earnings during 2017 , 2016 and 2015 (in millions): Recognized in Earnings Gain (Loss) Recognized in Accumulated Other Comprehensive Loss Classification of Gain (Loss) Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income 2017 Foreign currency contracts (1) $ 2.7 Cost of goods sold $ 0.4 Interest rate contract (0.7 ) Interest expense, net (2.4 ) Total $ 2.0 $ (2.0 ) 2016 Foreign currency contracts $ (2.6 ) Cost of goods sold $ 1.0 Interest rate contract (5.1 ) Interest expense, net (2.0 ) Total $ (7.7 ) $ (1.0 ) 2015 Foreign currency contracts $ (2.3 ) Cost of goods sold $ (2.4 ) Interest rate contract (2.3 ) Interest expense, net (0.3 ) Total $ (4.6 ) $ (2.7 ) (1) The outstanding contracts as of December 31, 2017 range in maturity through December 2018. There was no ineffectiveness with respect to the cash flow hedges during the years ended December 31, 2017 , 2016 and 2015 . The following table summarizes the activity in accumulated other comprehensive loss related to the derivatives held by the Company during the years ended December 31, 2017 , 2016 and 2015 (in millions): Before-Tax Amount Income Tax After-Tax Amount Accumulated derivative net losses as of December 31, 2014 $ (0.2 ) $ (0.1 ) $ (0.1 ) Net changes in fair value of derivatives (6.2 ) (1.6 ) (4.6 ) Net losses reclassified from accumulated other comprehensive loss into income 3.1 0.4 2.7 Accumulated derivative net losses as of December 31, 2015 (3.3 ) (1.3 ) (2.0 ) Net changes in fair value of derivatives (7.8 ) (0.1 ) (7.7 ) Net losses reclassified from accumulated other comprehensive loss into income 1.0 — 1.0 Accumulated derivative net losses as of December 31, 2016 (10.1 ) (1.4 ) (8.7 ) Net changes in fair value of derivatives 1.9 (0.1 ) 2.0 Net losses reclassified from accumulated other comprehensive loss into income 2.2 0.2 2.0 Accumulated derivative net losses as of December 31, 2017 $ (6.0 ) $ (1.3 ) $ (4.7 ) Fair Value Hedges The Company uses interest rate swap agreements designated as fair value hedges to minimize exposure to changes in the fair value of fixed-rate debt that results from fluctuations in benchmark interest rates. During 2015, the Company entered into an interest rate swap instrument with a notional amount of $300.0 million and an expiration date of December 1, 2021 designated as a fair value hedge of the Company’s 5 7 / 8 % senior notes (Note 7). Under the interest rate swap, the Company paid a floating interest rate based on the three-month LIBOR plus a spread of 4.14% and the counterparty to the agreement paid a fixed interest rate of 5 7 / 8 %. The gains and losses related to changes in the fair value of the interest rate swap were recorded to “Interest expense, net” and offset changes in the fair value of the underlying hedged 5 7 / 8 % senior notes. During 2016, the Company terminated the existing interest rate swap transaction and received cash proceeds of approximately $7.3 million . The resulting gain was deferred and is being amortized as a reduction to “Interest expense, net” over the remaining term of the Company’s 5 7 / 8 % senior notes through December 1, 2021. Refer to Note 7 for further information. Net Investment Hedges The Company uses non-derivative and derivative instruments, to hedge a portion of its net investment in foreign operations against adverse movements in exchange rates. For instruments that are designated as hedges of net investments in foreign operations, changes in the fair value of the derivative instruments are recorded in foreign currency translation adjustments, a component of accumulated other comprehensive loss, to offset changes in the value of the net investments being hedged. When the net investment in foreign operations is sold or substantially liquidates, the amounts recorded in accumulated other comprehensive loss are reclassified to earnings. To the extent foreign currency denominated debt is dedesignated from a net investment hedge relationship, changes in the value of the foreign currency denominated debt are recorded in earnings through the maturity date. During 2015, the Company designated its €312.0 million (or approximately $374.2 million as of December 31, 2017 ) term loan facility with a maturity date of June 26, 2020 as a hedge of its net investment in foreign operations to offset foreign currency translation gains or losses on the net investment. The following table summarizes the notional values and the after-tax impact of changes in the fair value of the instrument designated as a net investment hedge (in millions): Notional Amount as of (Loss) Gain Recognized in Accumulated Other Comprehensive Loss for the Years Ended December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 Foreign currency denominated debt $ 374.2 $ 329.2 $ (45.0 ) $ 12.7 There was no ineffectiveness with respect to the net investment hedge during the years ended December 31, 2017 and 2016 . Derivative Transactions Not Designated as Hedging Instruments During 2017 , 2016 and 2015 , the Company entered into foreign currency contracts to economically hedge receivables and payables on the Company and its subsidiaries’ balance sheets that are denominated in foreign currencies other than the functional currency. These contracts were classified as non-designated derivative instruments. Gains and losses on such contracts are substantially offset by losses and gains on the remeasurement of the underlying asset or liability being hedged and are immediately recognized into earnings. As of December 31, 2017 and 2016 , the Company had outstanding foreign currency contracts with a notional amount of approximately $1,701.4 million and $1,550.2 million , respectively. The following table summarizes the impact that changes in the fair value of derivatives not designated as hedging instruments had on earnings (in millions): For the Years Ended Classification of Gain (Loss) December 31, 2017 December 31, 2016 December 31, 2015 Foreign currency contracts Other expense, net $ 38.3 $ (5.7 ) $ (67.3 ) The table below sets forth the fair value of derivative instruments as of December 31, 2017 (in millions): Asset Derivatives as of December 31, 2017 Liability Derivatives as of December 31, 2017 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivative instruments designated as hedging instruments: Foreign currency contracts Other current assets $ — Other current liabilities $ 1.2 Interest rate contract Other noncurrent assets — Other noncurrent liabilities 4.8 Derivative instruments not designated as hedging instruments: Foreign currency contracts Other current assets 7.8 Other current liabilities 11.0 Total derivative instruments $ 7.8 $ 17.0 The table below sets forth the fair value of derivative instruments as of December 31, 2016 (in millions): Asset Derivatives as of December 31, 2016 Liability Derivatives as of December 31, 2016 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivative instruments designated as hedging instruments: Foreign currency contracts Other current assets $ 0.2 Other current liabilities $ 3.9 Interest rate contract Other noncurrent assets — Other noncurrent liabilities 6.4 Derivative instruments not designated as hedging instruments: Foreign currency contracts Other current assets 6.3 Other current liabilities 3.1 Total derivative instruments $ 6.5 $ 13.4 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The future payments required under the Company’s significant commitments, excluding indebtedness, as of December 31, 2017 are as follows (in millions): Payments Due By Period 2018 2019 2020 2021 2022 Thereafter Total Interest payments related to indebtedness (1) $ 29.2 $ 26.8 $ 47.3 $ 20.9 $ 2.5 $ 5.7 $ 132.4 Capital lease obligations 5.5 3.8 2.4 1.5 1.1 3.5 17.8 Operating lease obligations 47.5 30.0 21.7 16.3 12.1 39.6 167.2 Unconditional purchase obligations (2) 64.4 7.3 2.2 0.9 0.1 — 74.9 Other short-term and long-term obligations (3) 105.8 71.0 50.1 60.2 33.1 35.9 356.1 Total contractual cash obligations $ 252.4 $ 138.9 $ 123.7 $ 99.8 $ 48.9 $ 84.7 $ 748.4 ____________________________________ (1) Estimated interest payments are calculated assuming current interest rates over minimum maturity periods specified in debt agreements. Debt may be repaid sooner or later than such minimum maturity periods (unaudited). (2) Unconditional purchase obligations exclude routine purchase orders entered into in the normal course of business. (3) Other short-term and long-term obligations include estimates of future minimum contribution requirements under the Company’s U.S. and non-U.S. defined benefit pension and postretirement plans. These estimates are based on current legislation in the countries the Company operates within and are subject to change. Other short-term and long-term obligations also include income tax liabilities related to uncertain income tax positions connected with ongoing income tax audits in various jurisdictions (unaudited). Amount of Commitment Expiration Per Period 2018 2019 2020 2021 2022 Thereafter Total Guarantees $ 109.2 $ 2.8 $ 2.0 $ 0.9 $ 0.2 $ — $ 115.1 Off-Balance Sheet Arrangements Guarantees The Company maintains a remarketing agreement with its U.S. finance joint venture, whereby the Company is obligated to repurchase repossessed inventory at market values. The Company has an agreement with its U.S. finance joint venture, AGCO Finance LLC, that limits the Company’s purchase obligations under this arrangement to $6.0 million in the aggregate per calendar year. The Company believes that any losses that might be incurred on the resale of this equipment will not materially impact the Company’s financial position or results of operations, due to the fair value of the underlying equipment. At December 31, 2017 , the Company has outstanding guarantees of indebtedness owed to third parties of approximately $115.1 million , primarily related to dealer and end-user financing of equipment. Such guarantees generally obligate the Company to repay outstanding finance obligations owed to financial institutions if dealers or end users default on such loans through 2022 . The Company believes the credit risk associated with these guarantees is not material to its financial position or results of operations. Losses under such guarantees historically have been insignificant. In addition, the Company generally would expect to be able to recover a significant portion of the amounts paid under such guarantees from the sale of the underlying financed farm equipment, as the fair value of such equipment is expected to be sufficient to offset a substantial portion of the amounts paid. Other At December 31, 2017 , the Company had outstanding designated and non-designated foreign exchange contracts with a gross notional amount of approximately $1,798.2 million . The outstanding contracts as of December 31, 2017 range in maturity through December 2018 (Note 11). The Company sells a majority of its wholesale receivables in North America, Europe and Brazil to its U.S., Canadian, European and Brazilian finance joint ventures. The Company also sells certain accounts receivable under factoring arrangements to financial institutions around the world. The Company reviewed the sale of such receivables and determined that these facilities should be accounted for as off-balance sheet transactions. Total lease expense under noncancelable operating leases was $73.0 million , $76.8 million and $77.2 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Contingencies The Environmental Protection Agency of Victoria, Australia issued a notice to the Company’s Australian subsidiary regarding remediation of contamination of a property located in a suburb of Melbourne, Australia. The property was owned and divested by the subsidiary before the subsidiary was acquired by the Company. The Australian subsidiary is in correspondence with the Environmental Protection Agency concerning the notice. At this time, the Company is not able to determine whether the subsidiary might have any liability or the nature and cost of any possible required remediation. In August 2008, as part of routine audits, the Brazilian taxing authorities disallowed deductions relating to the amortization of certain goodwill recognized in connection with a reorganization of the Company’s Brazilian operations and the related transfer of certain assets to the Company’s Brazilian subsidiaries. The amount of the tax disallowance through December 31, 2017 , not including interest and penalties, was approximately 131.5 million Brazilian Reais (or approximately $39.7 million ). The amount ultimately in dispute will be significantly greater because of interest and penalties. The Company has been advised by its legal and tax advisors that its position with respect to the deductions is allowable under the tax laws of Brazil. The Company is contesting the disallowance and believes that it is not likely that the assessment, interest or penalties will be required to be paid. However, the ultimate outcome will not be determined until the Brazilian tax appeal process is complete, which could take several years. The Company is a party to various other legal claims and actions incidental to its business. The Company believes that none of these claims or actions, either individually or in the aggregate, is material to its business or financial statements as a whole, including its results of operations and financial condition. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company categorizes its assets and liabilities into one of three levels based on the assumptions used in valuing the asset or liability. Estimates of fair value for financial assets and liabilities are based on a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Observable inputs (highest level) reflect market data obtained from independent sources, while unobservable inputs (lowest level) reflect internally developed market assumptions. In accordance with this guidance, fair value measurements are classified under the following hierarchy: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations in which all significant inputs are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Model-derived valuations in which one or more significant inputs are unobservable. The Company categorizes its pension plan assets into one of the three levels of the fair value hierarchy. See Note 8 for a discussion of the valuation methods used to measure the fair value of the Company’s pension plan assets. The Company enters into foreign currency and interest rate swap contracts. The fair values of the Company’s derivative instruments are determined using discounted cash flow valuation models. The significant inputs used in these models are readily available in public markets, or can be derived from observable market transactions, and therefore have been classified as Level 2. Inputs used in these discounted cash flow valuation models for derivative instruments include the applicable exchange rates, forward rates or interest rates. Such models used for option contracts also use implied volatility. See Note 11 for a discussion of the Company’s derivative instruments and hedging activities. Assets and liabilities measured at fair value on a recurring basis as of December 31, 2017 and 2016 are summarized below (in millions): As of December 31, 2017 Level 1 Level 2 Level 3 Total Derivative assets $ — $ 7.8 $ — $ 7.8 Derivative liabilities $ — $ 17.0 $ — $ 17.0 As of December 31, 2016 Level 1 Level 2 Level 3 Total Derivative assets $ — $ 6.5 $ — $ 6.5 Derivative liabilities $ — $ 13.4 $ — $ 13.4 Cash and cash equivalents, accounts and notes receivable, and accounts payable are valued at their carrying amounts in the Company’s Consolidated Balance Sheets, due to the immediate or short-term maturity of these financial instruments. The carrying amounts of long-term debt under the Company’s 1.056% senior term loan, credit facility, senior term loans due 2021 and senior term loans due between 2019 and 2026 (Note 7) approximate fair value based on the borrowing rates currently available to the Company for loans with similar terms and average maturities. At December 31, 2017 , the estimated fair value of the Company’s 5 7 / 8 % senior notes (Note 7), based on their listed market values, was approximately $324.7 million , compared to its carrying value of $305.3 million . |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Rabobank, a financial institution based in the Netherlands, is a 51% owner in the Company’s finance joint ventures, which are located in the United States, Canada, Europe, Brazil, Argentina and Australia. Rabobank is also the principal agent and participant in the Company’s revolving credit facility (Note 7). The majority of the assets of the Company’s finance joint ventures represents finance receivables. The majority of the liabilities represents notes payable and accrued interest. Under the various joint venture agreements, Rabobank or its affiliates provide financing to the joint venture companies, primarily through lines of credit. During both 2017 and 2015 , the Company did not make additional investments in its finance joint ventures. During 2016 , the Company made a total of approximately $2.8 million of additional investments in its retail finance joint venture in the Netherlands, primarily related to additional capital required as a result of increased retail finance portfolios during 2016. During 2017 and 2016 , the Company received dividends of approximately $78.5 million and $44.5 million , respectively, from certain of the Company’s finance joint ventures. The Company’s finance joint ventures provide retail financing and wholesale financing to its dealers. The terms of the financing arrangements offered to the Company’s dealers are similar to arrangements the finance joint ventures provide to unaffiliated third parties. In addition, the Company transfers, on an ongoing basis, a majority of its wholesale receivables in North America, Europe and Brazil to its U.S., Canadian, European and Brazilian finance joint ventures (Note 4). The Company maintains a remarketing agreement with its U.S. finance joint venture (Note 12). In addition, as part of sales incentives provided to end users, the Company may from time to time subsidize interest rates of retail financing provided by its finance joint ventures. The cost of those programs is recognized at the time of sale to the Company’s dealers. Tractors and Farm Equipment Limited (“TAFE”), in which the Company holds a 23.75% interest, manufactures and sells Massey Ferguson-branded equipment primarily in India, and also supplies tractors and components to the Company for sale in other markets. Mallika Srinivasan, who is the Chairman and Chief Executive Officer of TAFE, is currently a member of the Company’s Board of Directors. As of December 31, 2017 , TAFE owned 12,150,152 shares of the Company’s common stock. The Company and TAFE are parties to an agreement pursuant to which, among other things, TAFE has agreed not to purchase in excess of 12,170,290 shares of the Company’s common stock, subject to certain adjustments, and the Company has agreed to annually nominate a TAFE representative to its Board of Directors. During 2017 , 2016 and 2015 , the Company purchased approximately $102.0 million , $128.5 million and $129.2 million , respectively, of tractors and components from TAFE. During 2017 , 2016 and 2015 , the Company sold approximately $1.2 million , $1.1 million and $2.2 million , respectively, of parts to TAFE. The Company received dividends from TAFE of approximately $1.8 million , $1.6 million and $1.7 million during 2017 , 2016 and 2015 , respectively. During 2017 , 2016 and 2015 , the Company paid approximately $7.2 million , $3.1 million and $3.5 million , respectively, to PPG Industries, Inc. for painting materials used in the Company’s manufacturing processes. The Company’s Chairman, President and Chief Executive Officer is currently a member of the board of directors of PPG Industries, Inc. During 2017 , 2016 and 2015 , the Company paid approximately $1.5 million , $2.0 million and $0.6 million , respectively, to Praxair, Inc. for propane, gas and welding, and laser consumables used in the Company’s manufacturing processes. The Company’s Chairman, President and Chief Executive Officer is currently a member of the board of directors of Praxair, Inc. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting Effective January 1, 2017, the Company modified its system of reporting, resulting from changes to its internal management and organizational structure, which changed its reportable segments from North America; South America; Europe/Africa/Middle East; and Asia/Pacific to North America; South America; Europe/Middle East; and Asia/Pacific/Africa. The Asia/Pacific/Africa reportable segment includes the regions of Africa, Asia, Australia and New Zealand, and the Europe/Middle East segment no longer includes certain markets in Africa. Effective January 1, 2017, these reportable segments are reflective of how the Company’s chief operating decision maker reviews operating results for the purposes of allocating resources and assessing performance. Disclosures for the years ended December 31, 2017 , 2016 and 2015 have been adjusted to reflect the change in reportable segments. The Company’s four reportable segments distribute a full range of agricultural equipment and related replacement parts. The Company evaluates segment performance primarily based on income from operations. Sales for each segment are based on the location of the third-party customer. The Company’s selling, general and administrative expenses and engineering expenses are charged to each segment based on the region and division where the expenses are incurred. As a result, the components of income from operations for one segment may not be comparable to another segment. Segment results for the years ended December 31, 2017 , 2016 and 2015 based on the Company’s current reportable segments are as follows (in millions): Years Ended December 31, North America South America Europe/ Middle East Asia/Pacific/Africa Consolidated 2017 Net sales $ 1,876.7 $ 1,063.5 $ 4,614.3 $ 752.0 $ 8,306.5 Income from operations 64.7 14.5 500.0 48.8 628.0 Depreciation 61.5 30.5 113.0 17.8 222.8 Assets 1,064.1 752.1 2,074.4 499.4 4,390.0 Capital expenditures 59.1 43.0 92.9 8.9 203.9 2016 Net sales $ 1,807.7 $ 917.5 $ 4,089.7 $ 595.6 $ 7,410.5 Income from operations 39.1 19.9 409.4 19.7 488.1 Depreciation 62.5 22.9 116.6 21.4 223.4 Assets 978.5 739.4 1,635.2 426.3 3,779.4 Capital expenditures 45.3 56.0 90.1 9.6 201.0 2015 Net sales $ 1,965.0 $ 949.0 $ 4,037.6 $ 515.7 $ 7,467.3 Income (loss) from operations 123.4 34.4 401.3 (12.2 ) 546.9 Depreciation 62.7 20.9 120.3 13.5 217.4 Assets 984.4 495.7 1,732.9 396.5 3,609.5 Capital expenditures 48.6 28.6 95.4 38.8 211.4 A reconciliation from the segment information to the consolidated balances for income from operations and total assets is set forth below (in millions): 2017 2016 2015 Segment income from operations $ 628.0 $ 488.1 $ 546.9 Corporate expenses (120.9 ) (119.7 ) (109.2 ) Stock compensation expense (35.6 ) (16.9 ) (11.6 ) Restructuring expenses (11.2 ) (11.9 ) (22.3 ) Amortization of intangibles (57.0 ) (51.2 ) (42.7 ) Consolidated income from operations $ 403.3 $ 288.4 $ 361.1 Segment assets $ 4,390.0 $ 3,779.4 $ 3,609.5 Cash and cash equivalents 367.7 429.7 426.7 Investments in affiliates 409.0 414.9 392.9 Deferred tax assets, other current and noncurrent assets 614.6 560.7 446.4 Intangible assets, net 649.0 607.3 507.7 Goodwill 1,541.4 1,376.4 1,114.5 Consolidated total assets $ 7,971.7 $ 7,168.4 $ 6,497.7 Net sales by customer location for the years ended December 31, 2017 , 2016 and 2015 were as follows (in millions): 2017 2016 2015 Net sales: United States $ 1,445.7 $ 1,404.6 $ 1,624.0 Canada 296.9 286.7 233.6 Germany 997.4 891.2 913.2 France 815.7 746.9 762.6 United Kingdom and Ireland 512.6 440.7 414.5 Finland and Scandinavia 721.3 677.7 637.0 Other Europe 1,396.0 1,127.9 1,077.7 South America 1,046.0 898.2 932.3 Middle East and Algeria 171.3 205.4 232.8 Africa 138.1 116.2 113.6 Asia 366.4 266.8 201.0 Australia and New Zealand 247.4 212.6 201.1 Mexico, Central America and Caribbean 151.7 135.6 123.9 $ 8,306.5 $ 7,410.5 $ 7,467.3 Net sales by product for the years ended December 31, 2017 , 2016 and 2015 were as follows (in millions): 2017 2016 2015 Net sales: Tractors $ 4,785.2 $ 4,225.1 $ 4,244.1 Replacement parts 1,305.0 1,211.3 1,204.4 Grain storage and protein production systems 1,049.6 892.5 766.2 Other machinery 582.5 521.6 629.6 Combines 349.0 302.8 331.9 Application equipment 235.2 257.2 291.1 $ 8,306.5 $ 7,410.5 $ 7,467.3 Property, plant and equipment and amortizable intangible assets by country as of December 31, 2017 and 2016 was as follows (in millions): 2017 2016 United States $ 647.9 $ 594.6 Germany 405.5 344.8 Brazil 217.9 210.4 Finland 149.9 145.9 China 127.7 130.0 Denmark 125.7 119.6 Italy 123.0 106.7 France 66.0 59.9 Other 182.1 172.3 $ 2,045.7 $ 1,884.2 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Account | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts Disclosure | SCHEDULE II AGCO CORPORATION AND SUBSIDIARIES SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS (In millions) Additions Description Balance at Beginning of Period Acquired Businesses Charged to Costs and Expenses Deductions Foreign Currency Translation Balance at End of Period Year ended December 31, 2017 Allowances for doubtful accounts $ 33.7 $ 2.2 $ 4.9 $ (5.3 ) $ 2.0 $ 37.5 Year ended December 31, 2016 Allowances for doubtful accounts $ 29.3 $ 2.2 $ 3.6 $ (1.1 ) $ (0.3 ) $ 33.7 Year ended December 31, 2015 Allowances for doubtful accounts $ 32.1 $ — $ 5.6 $ (3.0 ) $ (5.4 ) $ 29.3 Additions Description Balance at Beginning of Period Charged to Costs and Expenses Reversal of Accrual Deductions Foreign Currency Translation Balance at End of Period Year ended December 31, 2017 Accruals of severance, relocation and other integration costs $ 15.3 $ 12.4 $ (1.4 ) $ (16.8 ) $ 1.4 $ 10.9 Year ended December 31, 2016 Accruals of severance, relocation and other integration costs $ 16.9 $ 12.0 $ (0.1 ) $ (13.3 ) $ (0.2 ) $ 15.3 Year ended December 31, 2015 Accruals of severance, relocation and other integration costs $ 25.4 $ 23.0 $ (0.7 ) $ (29.5 ) $ (1.3 ) $ 16.9 Additions Description Balance at Beginning of Period Acquired Businesses Charged (Credited) to Costs and Expenses Deductions Foreign Currency Translation Balance at End of Period Year ended December 31, 2017 Deferred tax valuation allowance $ 116.0 $ — $ (38.4 ) $ — $ 4.3 $ 81.9 Year ended December 31, 2016 Deferred tax valuation allowance $ 75.8 $ — $ 37.9 $ — $ 2.3 $ 116.0 Year ended December 31, 2015 Deferred tax valuation allowance $ 93.3 $ — $ (4.5 ) $ — $ (13.0 ) $ 75.8 |
Operations and Summary of Sig24
Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The Company’s Consolidated Financial Statements represent the consolidation of all wholly-owned companies, majority-owned companies and joint ventures in which the Company has been determined to be the primary beneficiary. The Company consolidates a variable interest entity (“VIE”) if the Company determines it is the primary beneficiary. The primary beneficiary of a VIE is the party that has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits that potentially could be significant to the VIE. The Company also consolidates all entities that are not considered VIEs if it is determined that the Company has a controlling voting interest to direct the activities that most significantly impact the joint venture or entity. The Company records investments in all other affiliate companies using the equity method of accounting when it has significant influence. Other investments, including those representing an ownership interest of less than 20% , are recorded at cost. All significant intercompany balances and transactions have been eliminated in the Consolidated Financial Statements. Certain prior period amounts have been reclassified to conform to the current period presentation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The estimates made by management primarily relate to accounts and notes receivable, inventories, deferred income tax valuation allowances, uncertain tax positions, goodwill and other identifiable intangible assets, and certain accrued liabilities, principally relating to reserves for volume discounts and sales incentives, warranty obligations, product liability and workers’ compensation obligations, and pensions and postretirement benefits. |
Revenue Recognition | Revenue Recognition Sales of equipment and replacement parts are recorded by the Company when title and risks of ownership have been transferred to an independent dealer, distributor or other customer. In certain countries, sales of certain grain storage and protein production systems in which the Company is responsible for construction or installation and which may be contingent upon customer acceptance, are recorded on an over-time basis, using a percentage of completion method. Payment terms vary by market and product, with fixed payment schedules on all sales. The terms of sale generally require that a purchase order or order confirmation accompany all shipments. Title generally passes to the dealer or distributor upon shipment or specified delivery, and the risk of loss upon damage, theft or destruction of the equipment is the responsibility of the dealer, distributor or third-party carrier at the point of the stated shipping or delivery term. In certain foreign countries, the Company retains a form of title to goods delivered to dealers until the dealer makes payment so that the Company can recover the goods in the event of customer default on payment. This occurs as the laws of some foreign countries do not provide for a seller’s retention of a security interest in goods in the same manner as established in the United States Uniform Commercial Code. The only right the Company retains with respect to the title is that enabling recovery of the goods in the event of customer default on payment. The dealer or distributor may not return equipment or replacement parts while its contract with the Company is in force. Replacement parts may be returned only under promotional and annual return programs. Provisions for returns under these programs are made at the time of sale based on the terms of the program and historical returns experience. The Company may provide certain sales incentives to dealers and distributors. Provisions for sales incentives are made at the time of sale for existing incentive programs. These provisions are revised in the event of subsequent modification to the incentive program. See “Accounts and Notes Receivable” for further discussion. In the United States and Canada, amounts due from sales to dealers are immediately due upon a retail sale of the underlying equipment by the dealer with the exception of sales of grain storage and protein production systems as discussed further below. If not previously paid by the dealer in the United States and Canada, installment payments are required generally beginning after the interest-free period with the remaining outstanding equipment balance generally due within 12 months after shipment or delivery. Some specified programs in the United States and Canada may allow for interest-free periods and due dates of up to 24 months for certain products. Interest generally is charged on the outstanding balance six to 12 months after shipment or delivery. Sales terms of some highly seasonal products provide for payment and due dates based on a specified date during the year regardless of the shipment date. Equipment sold to dealers in the United States and Canada is paid in full on average within 12 months of shipment. Sales of replacement parts generally are payable within 30 days of shipment, with terms for some larger, seasonal stock orders generally requiring payment within six months of shipment. In other international markets, equipment sales generally are payable in full within 30 to 180 days of shipment or delivery. Payment terms for some highly seasonal products have a specified due date during the year regardless of the shipment or delivery date. Sales of replacement parts generally are payable within 30 to 90 days of shipment, with terms for some larger, seasonal stock orders generally payable within six months of shipment. In certain markets, there is a time lag, which varies based on the timing and level of retail demand, between the date the Company records a sale and when the dealer sells the equipment to a retail customer. |
Foreign Currency Transaction | Foreign Currency Translation The financial statements of the Company’s foreign subsidiaries are translated into United States currency in accordance with Accounting Standards Codification (“ASC”) 830, “Foreign Currency Matters.” Assets and liabilities are translated to United States dollars at period-end exchange rates. Income and expense items are translated at average rates of exchange prevailing during the period. Translation adjustments are included in “Accumulated other comprehensive loss” in stockholders’ equity within the Company’s Consolidated Balance Sheets. Gains and losses, which result from foreign currency transactions, are included in the accompanying Consolidated Statements of Operations. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash at December 31, 2017 and 2016 of $317.0 million and $386.2 million , respectively, consisted primarily of cash on hand and bank deposits. The Company considers all investments with an original maturity of three months or less to be cash equivalents. Cash equivalents at December 31, 2017 and 2016 of $50.7 million and $43.5 million , respectively, consisted primarily of money market deposits, certificates of deposits and overnight investments. |
Accounts and Notes Receivable | Accounts and Notes Receivable Accounts and notes receivable arise from the sale of equipment and replacement parts to independent dealers, distributors or other customers. Payments due under the Company’s terms of sale generally range from one to 12 months and are not contingent upon the sale of the equipment by the dealer or distributor to a retail customer. Under normal circumstances, payment terms are not extended and equipment may not be returned. In certain regions, with respect to most equipment sales, including the United States and Canada, the Company is obligated to repurchase equipment and replacement parts upon cancellation of a dealer or distributor contract. These obligations are required by national, state or provincial laws and require the Company to repurchase a dealer or distributor’s unsold inventory, including inventories for which the receivable already has been paid. The Company offers various sales terms with respect to its products. For sales in most markets outside of the United States and Canada, the Company generally does not charge interest on outstanding receivables with its dealers and distributors. For sales to certain dealers or distributors in the United States and Canada, interest is charged at or above prime lending rates on outstanding receivable balances after interest-free periods. These interest-free periods vary by product and generally range from one to 12 months as previously discussed. In limited circumstances, the Company provides sales terms, and in some cases, interest-free periods that are longer than 12 months for certain products. These are typically specified programs, predominantly in the United States and Canada, in which interest is charged after a period of up to 24 months depending on the year of the sale and the dealer or distributor’s ordering or sales volume during the preceding year. Actual interest-free periods are shorter than described above because the equipment receivable from dealers or distributors in some countries, such as in the United States and Canada, is generally due immediately upon sale of the equipment to a retail customer. Receivables can also be paid prior to terms specified in sales agreements. Under normal circumstances, interest is not forgiven and interest-free periods are not extended. The following summarizes by geographic region, as a percentage of our consolidated net sales, amounts with maximum interest-free periods as presented below (in millions): Year Ended December 31, 2017 North America South America Europe/ Middle East Asia/Pacific/Africa Consolidated 0 to 6 months $ 1,399.6 $ 1,063.5 $ 4,603.9 $ 752.0 $ 7,819.0 94.1 % 7 to 12 months 467.7 — 10.4 — 478.1 5.8 % 13 to 24 months 9.4 — — — 9.4 0.1 % $ 1,876.7 $ 1,063.5 $ 4,614.3 $ 752.0 $ 8,306.5 100.0 % The Company has an agreement to permit transferring, on an ongoing basis, a majority of its wholesale interest-bearing and non-interest bearing accounts receivable in North America, Europe and Brazil to its U.S., Canadian, European and Brazilian finance joint ventures. Qualified dealers may obtain additional financing through the Company’s U.S., Canadian, European and Brazilian finance joint ventures at the joint ventures’ discretion. The Company provides various volume bonus and sales incentive programs with respect to its products. These sales incentive programs include reductions in invoice prices, reductions in retail financing rates, dealer commissions and dealer incentive allowances. In most cases, incentive programs are established and communicated to the Company’s dealers on a quarterly basis. The incentives are paid either at the time of the cash settlement of the receivable (which is generally at the time of retail sale), at the time of retail financing, at the time of warranty registration, or at a subsequent time based on dealer purchase volumes. The incentive programs are product-line specific and generally do not vary by dealer. The cost of sales incentives associated with dealer commissions and dealer incentive allowances is estimated based upon the terms of the programs and historical experience, is often based on a percentage of the sales price and is recorded at the later of (a) the date at which the related revenue is recognized, or (b) the date at which the sales incentive is offered. The related provisions and accruals are made on a product or product-line basis and are monitored for adequacy and revised at least quarterly in the event of subsequent modifications to the programs. Volume discounts are estimated and recognized based on historical experience, and related reserves are monitored and adjusted based on actual dealer purchase volumes and the dealer’s progress towards achieving specified cumulative target levels. The Company records the cost of interest subsidy payments, which is a reduction in the retail financing rates, at the later of (a) the date at which the related revenue is recognized, or (b) the date at which the sales incentive is offered. Estimates of these incentives are based on the terms of the programs and historical experience. All incentive programs are recorded and presented as a reduction of revenue, due to the fact that the Company does not receive an identifiable benefit in exchange for the consideration provided. In the United States and Canada, reserves for incentive programs related to accounts receivable not sold to Company’s U.S. and Canadian finance joint ventures are recorded as “accounts receivable allowances” within the Company’s Consolidated Balance Sheets due to the fact that the incentives are paid through a reduction of future cash settlement of the receivable. Globally, reserves for incentive programs that will be paid in cash or credit memos, as is the case with most of the Company’s volume discount programs, as well as sales with incentives associated with accounts receivable sold to its finance joint ventures, are recorded within “Accrued expenses” within the Company’s Consolidated Balance Sheets. Accounts and notes receivable are shown net of allowances for sales incentive discounts available to dealers and for doubtful accounts. Cash flows related to the collection of receivables are reported within “Cash flows from operating activities” within the Company’s Consolidated Statements of Cash Flows. Accounts and notes receivable allowances at December 31, 2017 and 2016 were as follows (in millions): 2017 2016 Sales incentive discounts $ 33.1 $ 34.5 Doubtful accounts 37.5 33.7 $ 70.6 $ 68.2 In the United States and Canada, sales incentives can be paid through future cash settlements of receivables and through credit memos to Company’s dealers or through reductions in retail financing rates paid to the Company’s finance joint ventures. Outside of the United States and Canada, sales incentives can be paid through cash or credit memos to the Company’s dealers or through reductions in retail financing rates paid to the Company’s finance joint ventures. The Company transfers certain accounts receivable under its accounts receivable sales agreements with its finance joint ventures (Note 4). The Company records such transfers as sales of accounts receivable when it is considered to have surrendered control of such receivables under the provisions of Accounting Standards Update (“ASU”) 2009-16, “Transfers and Servicing (Topic 860): Accounting for Transfers of Financial Assets.” Cash payments made to the Company’s finance joint ventures for sales incentive discounts provided to dealers related to outstanding accounts receivables sold are recorded within “Accrued expenses”. |
Inventories | Inventories Inventories are valued at the lower of cost or market using the first-in, first-out method. Market is current replacement cost (by purchase or by reproduction, dependent on the type of inventory). In cases where market exceeds net realizable value (i.e., estimated selling price less reasonably predictable costs of completion and disposal), inventories are stated at net realizable value. Market is not considered to be less than net realizable value reduced by an allowance for an approximately normal profit margin. At December 31, 2017 and 2016 , the Company had recorded $165.7 million and $137.2 million , respectively, as an adjustment for surplus and obsolete inventories. These adjustments are reflected within “Inventories, net” within the Company’s Consolidated Balance Sheets. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are recorded at cost, less accumulated depreciation and amortization. Depreciation is provided on a straight-line basis over the estimated useful lives of ten to 40 years for buildings and improvements, three to 15 years for machinery and equipment and three to ten years for furniture and fixtures. Expenditures for maintenance and repairs are charged to expense as incurred. |
Goodwill, Other Intangible Assets and Long-Lived Assets | Goodwill, Other Intangible Assets and Long-Lived Assets The Company tests goodwill for impairment, at the reporting unit level, annually and when events or circumstances indicate that fair value of a reporting unit may be below its carrying value. A reporting unit is an operating segment or one level below an operating segment, for example, a component. The Company combines and aggregates two or more components of an operating segment as a single reporting unit if the components have similar economic characteristics. The Company’s reportable segments are not its reporting units. Goodwill is evaluated annually as of October 1 for impairment using a qualitative assessment or a quantitative two-step assessment. If the Company elects to perform a qualitative assessment and determines the fair value of its reporting units more likely than not exceed their carrying value, no further evaluation is necessary. For reporting units where the Company performs a two-step quantitative assessment, the first step requires the Company to compare the fair value of each reporting unit, which is determined based on a combination of a discounted cash flow valuation approach and a market multiple valuation approach, to its respective carrying value, including goodwill. If the fair value of the reporting unit exceeds its carrying value, the goodwill is not considered impaired. If the carrying value is higher than the fair value of the reporting unit, the second step of the quantitative process is required to measure the amount of impairment, if any. The second step of the quantitative assessment results in a calculation of the implied fair value of the reporting unit’s goodwill, which is determined as the excess of the fair value of a reporting unit over the fair values assigned to its assets and liabilities. If the implied fair value of goodwill is less than the carrying value of the reporting unit’s goodwill, the difference is recognized as an impairment loss. |
Amortization of certain Intangible Assets | The Company reviews its long-lived assets, which include intangible assets subject to amortization, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The evaluation for recoverability is performed at a level where independent cash flows may be attributed to either an asset or asset group. If the Company determines that the carrying amount of an asset or asset group is not recoverable based on the expected undiscounted future cash flows of the asset or asset group, an impairment loss is recorded equal to the excess of the carrying amounts over the estimated fair value of the long-lived assets. Estimates of future cash flows are based on many factors, including current operating results, expected market trends and competitive influences. The Company also evaluates the amortization periods assigned to its intangible assets to determine whether events or changes in circumstances warrant revised estimates of useful lives. Assets to be disposed of by sale are reported at the lower of the carrying amount or fair value, less estimated costs to sell. The results of the Company’s goodwill and long-lived assets impairment analyses conducted as of October 1, 2017 , 2016 and 2015 indicated that no reduction in the carrying amount of the Company’s goodwill and long-lived assets was required. The Company’s accumulated goodwill impairment is approximately $180.5 million related to impairment charges the Company recorded during 2012 and 2006 pertaining to its Chinese harvesting reporting unit and former sprayer reporting unit, respectively. The Chinese harvesting business operates within the Asia/Pacific/Africa geographical reportable segment and the former sprayer reporting unit operates within the North American geographical reportable segment. Changes in the carrying amount of goodwill during the years ended December 31, 2017 , 2016 and 2015 are summarized as follows (in millions): North America South America Europe/ Middle East Asia/Pacific/Africa Consolidated Balance as of December 31, 2014 $ 513.6 $ 169.7 $ 445.4 $ 64.1 $ 1,192.8 Acquisition 5.1 — 4.4 12.7 22.2 Foreign currency translation — (55.3 ) (38.6 ) (6.6 ) (100.5 ) Balance as of December 31, 2015 518.7 114.4 411.2 70.2 1,114.5 Acquisitions 25.2 — 196.4 47.6 269.2 Foreign currency translation — 24.4 (25.7 ) (6.0 ) (7.3 ) Balance as of December 31, 2016 543.9 138.8 581.9 111.8 1,376.4 Acquisitions 67.2 — 17.4 — 84.6 Foreign currency translation — (2.4 ) 71.7 11.1 80.4 Balance as of December 31, 2017 $ 611.1 $ 136.4 $ 671.0 $ 122.9 $ 1,541.4 The Company amortizes certain acquired identifiable intangible assets primarily on a straight-line basis over their estimated useful lives, which range from three to 50 years. |
Warranty Reserves | The Company’s agricultural equipment products generally are under warranty against defects in materials and workmanship for a period of one to four years. The Company accrues for future warranty costs at the time of sale based on historical warranty experience. Approximately $42.4 million and $32.5 million of warranty reserves are included in “Other noncurrent liabilities” in the Company’s Consolidated Balance Sheets as of December 31, 2017 and 2016 , respectively. |
Insurance Reserves | Insurance Reserves Under the Company’s insurance programs, coverage is obtained for significant liability limits as well as those risks required to be insured by law or contract. It is the policy of the Company to self-insure a portion of certain expected losses primarily related to workers’ compensation and comprehensive general liability, product and vehicle liability. Provisions for losses expected under these programs are recorded based on the Company’s estimates of the aggregate liabilities for the claims incurred. |
Research and Development Expenses | Research and Development Expenses Research and development expenses are expensed as incurred and are included in engineering expenses in the Company’s Consolidated Statements of Operations. |
Advertising Costs | Advertising Costs The Company expenses all advertising costs as incurred. Cooperative advertising costs normally are expensed at the time the revenue is earned. |
Shipping and Handling Expenses | Shipping and Handling Expenses All shipping and handling fees charged to customers are included as a component of net sales. Shipping and handling costs are included as a part of cost of goods sold, with the exception of certain handling costs included in selling, general and administrative expenses in the amount of $29.5 million , $24.3 million and $24.6 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Refer to Note 6 for additional information regarding the Company’s income taxes. |
Net Income Per Common Share | Net Income Per Common Share Basic net income per common share is computed by dividing net income by the weighted average number of common shares outstanding during each period. Diluted net income per common share assumes the exercise of outstanding stock-settled stock appreciation rights (“SSARs”) and the vesting of performance share awards and restricted stock units using the treasury stock method when the effects of such assumptions are dilutive. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) The Company reports comprehensive income (loss), defined as the total of net income (loss) and all other non-owner changes in equity, and the components thereof in its Consolidated Statements of Stockholders’ Equity and Consolidated Statements of Comprehensive Income. |
Derivatives | Derivatives The Company uses foreign currency contracts to hedge the foreign currency exposure of certain receivables and payables. The contracts are for periods consistent with the exposure being hedged and generally have maturities of one year or less. These contracts are classified as non-designated derivative instruments. The Company also enters into foreign currency contracts designated as cash flow hedges of expected sales. The Company’s foreign currency contracts mitigate risk due to exchange rate fluctuations because gains and losses on these contracts generally offset losses and gains on the exposure being hedged. The notional amounts of the foreign currency contracts do not represent amounts exchanged by the parties and, therefore, are not a measure of the Company’s risk. The amounts exchanged are calculated on the basis of the notional amounts and other terms of the contracts. The credit and market risks under these contracts are not considered to be significant. The Company’s interest expense is, in part, sensitive to the general level of interest rates, and the Company manages its exposure to interest rate risk through the mix of floating rate and fixed rate debt. From time to time, the Company enters into interest rate swap agreements in order to manage the Company’s exposure to interest rate fluctuations. The Company uses non-derivative and, periodically, derivative instruments to hedge a portion of the Company’s net investment in foreign operations against adverse movements in exchange rates. The Company’s hedging policy prohibits it from entering into any foreign currency contracts for speculative trading purposes. Refer to Note 11 for additional information regarding the Company’s derivative instruments and hedging activities. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-12, “Targeted Improvements to Accounting for Hedging Activities” (“ASU 2017-12”), which aligns an entity’s risk management activities and financial reporting for hedge relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The amendments include 1) the ability to apply hedge accounting for risk components in hedging relationships involving nonfinancial risk and interest rate risk, 2) new alternatives for measuring the hedged item for fair value hedges of interest rate risk, 3) elimination of the requirement to separately measure and report hedge ineffectiveness, 4) requirement to present the earnings effect of the hedging instrument in the same income statement line in which the earnings effect of the hedged item is reported and 5) less stringent requirements for effectiveness testing, hedge documentation and applying the critical terms match method. ASU 2017-07 is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods using a prospective approach. Early adoption is permitted for any interim or annual period. The amendments should be applied to existing hedging relationships on the date of adoption. The Company adopted the standard effective January 1, 2018. The standard did not have a material impact on the Company’s results of operations, financial condition and cash flows. In March 2017, the FASB issued ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” (“ASU 2017-07”), which requires the service cost component of net periodic pension and postretirement benefit cost be included in the same line item as other compensation costs arising from services rendered by employees. The other components of net periodic pension and postretirement benefit cost are required to be classified outside the subtotal of income from operations. Of the components of net periodic pension and postretirement benefit cost, only the service cost component will be eligible for asset capitalization. ASU 2017-07 is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods, using a retrospective approach for the presentation of the service cost component and other components of net periodic pension and postretirement benefit cost in the statement of operations; and a prospective approach for the capitalization of the service cost component of net periodic pension and postretirement benefit cost in assets. Early adoption is permitted for any interim or annual period. ASU 2017-07 allows a practical expedient for applying the retrospective presentation requirements. The Company expects to adopt ASU 2017-07 on January 1, 2018 and that the adoption will not have a material impact on its results of operations, financial condition and cash flows. In January 2017, the FASB issued ASU 2017-04, “Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”), which eliminates Step 2 from the goodwill impairment test. Under the standard, an entity should perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, resulting in an impairment charge that is the amount by which the carrying amount exceeds the reporting unit’s fair value. The impairment charge, however, should not exceed the total amount of goodwill allocated to a reporting unit. The impairment assessment under ASU 2017-04 applies to all reporting units, including those with a zero or negative carrying amount. ASU 2017-04 is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods using a prospective approach. Early adoption is permitted for any interim or annual goodwill impairment test performed on testing dates after January 1, 2017. The Company expects to adopt ASU 2017-04 effective January 1, 2020 and will apply the standard to all impairment tests performed thereafter. In November 2016, the FASB issued ASU 2016-18, “Restricted Cash” (“ASU 2016-18”). which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. As a result, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 is effective for annual periods beginning after December 15, 2017, and interim period within those annual periods using a retrospective approach. Early adoption is permitted in any interim or annual period. The Company expects to adopt ASU 2016-18 on January 1, 2018 and that the adoption will not have a material impact on its cash flows. In October 2016, the FASB issued ASU 2016-16, “Intra-Entity Transfers of Assets Other Than Inventory” (“ASU 2016-16”), which requires recognition of the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Consequently, the standard eliminates the exception to the recognition of current and deferred income taxes for an intra-entity asset transfer other than for inventory until the asset has been sold to an outside party. ASU 2016-16 is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods using a modified retrospective approach. Early adoption is permitted in any interim or annual period. The Company expects to adopt ASU 2016-16 on January 1, 2018 and that the adoption will not have a material impact on its results of operations, financial condition and cash flows. In August 2016, the FASB issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”), which addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The standard is effective for annual periods beginning after December 15, 2017, and interim periods within those fiscal years. ASU 2016-15 may be applied using a retrospective approach or a prospective approach, if impracticable to apply the amendments retrospectively. Early adoption is permitted in any interim or annual period. The Company adopted ASU 2016-15 on January 1, 2017 and the adoption did not have a material impact on its cash flows. In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”), which requires measurement and recognition of expected versus incurred credit losses for financial assets held. ASU 2016-13 is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. This standard will likely impact the results of operations and financial condition of the Company’s finance joint ventures and as a result, will likely impact the Company’s “Investment in affiliates” and “Equity in net earnings of affiliates” upon adoption. The Company’s finance joint ventures are currently evaluating the standard’s impact to their results of operations and financial condition. In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”). ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the accounting for forfeitures, employer tax withholding on share-based compensation and the financial statement presentation of excess tax benefits or deficiencies. In addition, the standard clarifies the statement of cash flow presentation for certain components of share-based awards. The Company adopted ASU 2016-09 on January 1, 2017 by prospectively recognizing excess tax benefits and tax deficiencies in the Company’s Consolidated Statements of Operations as the awards vest or were settled, when applicable, and by prospectively presenting excess tax benefits as an operating activity, rather than a financing activity, in the Company’s Consolidated Statements of Cash Flows, when applicable. In addition, the Company elected to change its accounting policy to recognize actual forfeitures, rather than estimate the number of awards that are expected to vest, by adjusting stock compensation expense in the same period as the forfeitures occur. The change in accounting policy was adopted using a modified retrospective approach, with a cumulative effect adjustment to “Retained Earnings” of approximately $1.7 million as of January 1, 2017 for the difference between stock compensation expense previously recorded and the amount that would have been recorded without assuming forfeitures. In February 2016, the FASB issued ASU 2016-02, “Leases” (“ASU 2016-02”), which supersedes the existing lease guidance under current U.S. GAAP. ASU 2016-02 is based on the principle that entities should recognize assets and liabilities arising from leases. The standard does not significantly change the lessees’ recognition, measurement and presentation of expenses and cash flows from the previous accounting standard. Leases are classified as finance or operating. ASU 2016-02’s primary change is the requirement for entities to recognize a lease liability for payments and a right-of-use asset representing the right to use the leased asset during the term of an operating lease arrangement. Lessees are permitted to make an accounting policy election to not recognize the asset and liability for leases with a term of 12 months or less. Lessors’ accounting under the standard is largely unchanged from the previous accounting standard. In addition, ASU 2016-02 expands the disclosure requirements of lease arrangements. The standard is effective for reporting periods beginning after December 15, 2018, and interim periods within those annual periods. Early adoption is permitted. Upon adoption, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently evaluating the impact of adopting this standard on the Company’s results of operations, financial condition and cash flows, but the Company has elected not to early adopt the standard for the year ended December 31, 2017. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”), which provides a single, comprehensive revenue recognition model for all contracts with customers with a five-step analysis in determining when and how revenue is recognized. The new model will require revenue recognition to depict the transfer of promised goods or services to customers at an amount that reflects the consideration expected to be received in exchange for those goods or services. Additional disclosures also will be required to enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers, including significant judgments and changes in those judgments. The standard is effective for reporting periods beginning after December 15, 2017, with early adoption permitted for reporting periods beginning after December 31, 2016. Entities have the option to apply the new standard under a full retrospective approach to each prior reporting period presented, or a modified retrospective approach with the cumulative effect of initial adoption and application within the Consolidated Statement of Stockholders’ Equity. The Company has completed its evaluation process, including the identification of new controls and processes designed to meet the requirements of the standard, as well as assessed the impact of adoption on the Consolidated Financial Statements and disclosures. Under the new model, the Company will recognize a contract asset for the value of expected replacement parts returns. Effective January 1, 2018, the Company adopted the new standard under the modified retrospective approach resulting in an insignificant cumulative adjustment to “Retained Earnings”. The disclosures included in the Company’s Consolidated Financial Statements related to revenue recognition will be significantly expanded under the new standard during 2018. |
Operations and Summary of Sig25
Operations and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Accounts Receivable Outstanding as a Percent of Net Sales | The following summarizes by geographic region, as a percentage of our consolidated net sales, amounts with maximum interest-free periods as presented below (in millions): Year Ended December 31, 2017 North America South America Europe/ Middle East Asia/Pacific/Africa Consolidated 0 to 6 months $ 1,399.6 $ 1,063.5 $ 4,603.9 $ 752.0 $ 7,819.0 94.1 % 7 to 12 months 467.7 — 10.4 — 478.1 5.8 % 13 to 24 months 9.4 — — — 9.4 0.1 % $ 1,876.7 $ 1,063.5 $ 4,614.3 $ 752.0 $ 8,306.5 100.0 % |
Trade Allowances and Sales Incentive Discounts | Accounts and notes receivable allowances at December 31, 2017 and 2016 were as follows (in millions): 2017 2016 Sales incentive discounts $ 33.1 $ 34.5 Doubtful accounts 37.5 33.7 $ 70.6 $ 68.2 |
Schedule of Inventory, Current | Inventories, net at December 31, 2017 and 2016 were as follows (in millions): 2017 2016 Finished goods $ 684.1 $ 589.3 Repair and replacement parts 605.9 532.5 Work in process 178.7 113.8 Raw materials 404.2 279.2 Inventories, net $ 1,872.9 $ 1,514.8 |
Property, Plant and Equipment | Property, plant and equipment, net at December 31, 2017 and 2016 consisted of the following (in millions): 2017 2016 Land $ 130.6 $ 112.1 Buildings and improvements 792.0 681.8 Machinery and equipment 2,391.6 2,116.1 Furniture and fixtures 147.6 126.4 Gross property, plant and equipment 3,461.8 3,036.4 Accumulated depreciation and amortization (1,976.5 ) (1,675.1 ) Property, plant and equipment, net $ 1,485.3 $ 1,361.3 |
Schedule of Goodwill | Changes in the carrying amount of goodwill during the years ended December 31, 2017 , 2016 and 2015 are summarized as follows (in millions): North America South America Europe/ Middle East Asia/Pacific/Africa Consolidated Balance as of December 31, 2014 $ 513.6 $ 169.7 $ 445.4 $ 64.1 $ 1,192.8 Acquisition 5.1 — 4.4 12.7 22.2 Foreign currency translation — (55.3 ) (38.6 ) (6.6 ) (100.5 ) Balance as of December 31, 2015 518.7 114.4 411.2 70.2 1,114.5 Acquisitions 25.2 — 196.4 47.6 269.2 Foreign currency translation — 24.4 (25.7 ) (6.0 ) (7.3 ) Balance as of December 31, 2016 543.9 138.8 581.9 111.8 1,376.4 Acquisitions 67.2 — 17.4 — 84.6 Foreign currency translation — (2.4 ) 71.7 11.1 80.4 Balance as of December 31, 2017 $ 611.1 $ 136.4 $ 671.0 $ 122.9 $ 1,541.4 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | Changes in the carrying amount of acquired intangible assets during 2017 and 2016 are summarized as follows (in millions): Trademarks and Customer Relationships Patents and Technology Land Use Rights Total Gross carrying amounts: Balance as of December 31, 2015 $ 122.2 $ 492.3 $ 92.5 $ 9.1 $ 716.1 Acquisitions 61.2 69.0 32.3 — 162.5 Foreign currency translation (4.2 ) (3.3 ) (2.7 ) (0.6 ) (10.8 ) Balance as of December 31, 2016 179.2 558.0 122.1 8.5 867.8 Acquisitions 19.5 24.4 28.1 — 72.0 Foreign currency translation 9.7 18.0 9.8 0.6 38.1 Balance as of December 31, 2017 $ 208.4 $ 600.4 $ 160.0 $ 9.1 $ 977.9 Trademarks and Customer Relationships Patents and Technology Land Use Rights Total Accumulated amortization: Balance as of December 31, 2015 $ 41.9 $ 193.8 $ 55.1 $ 2.9 $ 293.7 Amortization expense 8.0 37.4 5.6 0.2 51.2 Foreign currency translation (0.2 ) 1.8 (1.2 ) (0.4 ) — Balance as of December 31, 2016 49.7 233.0 59.5 2.7 344.9 Amortization expense 10.3 38.5 8.0 0.2 57.0 Foreign currency translation 1.4 8.2 5.9 0.1 15.6 Balance as of December 31, 2017 $ 61.4 $ 279.7 $ 73.4 $ 3.0 $ 417.5 The acquired intangible assets have a weighted average useful life as follows: Intangible Asset Weighted-Average Useful Life Patents and technology 12 years Customer relationships 13 years Trademarks and trade names 19 years Land use rights 45 years |
Schedule of Indefinite-lived Intangible Assets by Major Class | Trademarks and Indefinite-lived intangible assets: Balance as of December 31, 2015 $ 85.3 Foreign currency translation (0.9 ) Balance as of December 31, 2016 84.4 Foreign currency translation 4.2 Balance as of December 31, 2017 $ 88.6 |
Schedule of Accrued Liabilities | Accrued expenses at December 31, 2017 and 2016 consisted of the following (in millions): 2017 2016 Reserve for volume discounts and sales incentives $ 489.1 $ 407.3 Warranty reserves 273.6 223.1 Accrued employee compensation and benefits 283.3 234.0 Accrued taxes 135.4 113.5 Other 226.5 182.9 $ 1,407.9 $ 1,160.8 |
Schedule of Product Warranty Liability | The warranty reserve activity for the years ended December 31, 2017 , 2016 and 2015 consisted of the following (in millions): 2017 2016 2015 Balance at beginning of the year $ 255.6 $ 230.3 $ 284.6 Acquisitions 5.1 3.7 0.2 Accruals for warranties issued during the year 215.9 214.6 152.6 Settlements made (in cash or in kind) during the year (183.1 ) (188.7 ) (186.2 ) Foreign currency translation 22.5 (4.3 ) (20.9 ) Balance at the end of the year $ 316.0 $ 255.6 $ 230.3 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | Stock compensation expense was recorded as follows (in millions). Refer to Note 10 for additional information regarding the Company’s stock incentive plans during 2017 , 2016 and 2015 : Years Ended December 31, 2017 2016 2015 Cost of goods sold $ 2.8 $ 1.5 $ 0.9 Selling, general and administrative expenses 35.6 16.9 11.6 Total stock compensation expense $ 38.4 $ 18.4 $ 12.5 |
Schedule of Components of Interest Expense, Net | Interest expense, net for the years ended December 31, 2017 , 2016 and 2015 consisted of the following (in millions): 2017 2016 2015 Interest expense $ 54.5 $ 65.4 $ 64.1 Interest income (9.4 ) (13.3 ) (18.7 ) $ 45.1 $ 52.1 $ 45.4 |
Schedule of Earnings Per Share, Basic and Diluted | A reconciliation of net income attributable to AGCO Corporation and its subsidiaries and weighted average common shares outstanding for purposes of calculating basic and diluted net income per share during the years ended December 31, 2017 , 2016 and 2015 is as follows (in millions, except per share data): 2017 2016 2015 Basic net income per share: Net income attributable to AGCO Corporation and subsidiaries $ 186.4 $ 160.1 $ 266.4 Weighted average number of common shares outstanding 79.5 81.4 87.0 Basic net income per share attributable to AGCO Corporation and subsidiaries $ 2.34 $ 1.97 $ 3.06 Diluted net income per share: Net income attributable to AGCO Corporation and subsidiaries $ 186.4 $ 160.1 $ 266.4 Weighted average number of common shares outstanding 79.5 81.4 87.0 Dilutive SSARs, performance share awards and restricted stock units 0.7 0.3 0.1 Weighted average number of common shares and common share equivalents outstanding for purposes of computing diluted net income per share 80.2 81.7 87.1 Diluted net income per share attributable to AGCO Corporation and subsidiaries $ 2.32 $ 1.96 $ 3.06 |
Schedule of Comprehensive Income (Loss) | The components of other comprehensive income (loss) and the related tax effects for the years ended December 31, 2017 , 2016 and 2015 are as follows (in millions): AGCO Corporation and Subsidiaries Noncontrolling Interests 2017 2017 Before-tax Amount Income Taxes After-tax Amount After-tax Amount Defined benefit pension plans $ 24.2 $ (4.8 ) $ 19.4 $ — Net gain on derivatives 4.1 (0.1 ) 4.0 — Foreign currency translation adjustments 56.6 — 56.6 1.2 Total components of other comprehensive income $ 84.9 $ (4.9 ) $ 80.0 $ 1.2 AGCO Corporation and Subsidiaries Noncontrolling Interests 2016 2016 Before-tax Amount Income Taxes After-tax Amount After-tax Amount Defined benefit pension plans $ (68.2 ) $ 12.7 $ (55.5 ) $ — Net loss on derivatives (6.8 ) 0.1 (6.7 ) — Foreign currency translation adjustments 80.8 — 80.8 1.6 Total components of other comprehensive income $ 5.8 $ 12.8 $ 18.6 $ 1.6 AGCO Corporation and Subsidiaries Noncontrolling Interests 2015 2015 Before-tax Amount Income Taxes After-tax Amount After-tax Amount Defined benefit pension plans $ 4.9 $ (0.6 ) $ 4.3 $ — Net loss on derivatives (3.1 ) 1.2 (1.9 ) — Foreign currency translation adjustments (556.1 ) — (556.1 ) (2.1 ) Total components of other comprehensive loss $ (554.3 ) $ 0.6 $ (553.7 ) $ (2.1 ) |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and liabilities assumed | The fair values of the assets acquired and liabilities assumed as of the acquisition date are presented in the following table (in millions): Current assets $ 74.2 Property, plant and equipment 21.9 Intangible assets 128.9 Goodwill 237.9 Total assets acquired 462.9 Current liabilities 63.8 Deferred tax liabilities 38.5 Long-term debt and other noncurrent liabilities 10.5 Total liabilities assumed 112.8 Net assets acquired $ 350.1 The preliminary fair values of the assets acquired and liabilities assumed as of the acquisition date are presented in the following table (in millions): Current assets $ 84.6 Property, plant and equipment 24.3 Intangible assets 7.6 Goodwill 17.4 Total assets acquired 133.9 Current liabilities 23.6 Long-term liabilities 8.2 Total liabilities assumed 31.8 Net assets acquired $ 102.1 The preliminary fair values of the assets acquired and liabilities assumed as of the acquisition date are presented in the following table (in millions): Current assets $ 59.5 Property, plant and equipment 20.8 Intangible assets 64.4 Goodwill 67.2 Total assets acquired 211.9 Current liabilities 12.2 Total liabilities assumed 12.2 Net assets acquired $ 199.7 |
Schedule of Acquired Other Identifiable Intangible Assets | The acquired identifiable intangible assets of Precision Planting as of the date of the acquisition are summarized in the following table (in millions): Intangible Asset Amount Weighted-Average Useful Life Customer relationships $ 21.4 14 years Technology 25.1 10 years Trademarks 17.9 20 years $ 64.4 The acquired identifiable intangible assets of Farmer Automatic as of the date of the acquisition are summarized in the following table (in millions): Intangible Asset Amount Weighted-Average Useful Life Customer relationships $ 4.1 10 years Technology 3.6 10 years Trademarks 1.9 10 years $ 9.6 The acquired identifiable intangible assets of Tecno as of the date of the acquisition are summarized in the following table (in millions): Intangible Asset Amount Weighted-Average Useful Life Customer relationships $ 15.7 10 years Technology 7.9 10 years Trademarks 3.9 10 years $ 27.5 The acquired identifiable intangible assets of Cimbria as of the date of the acquisition are summarized in the following table (in millions) : Intangible Asset Amount Weighted-Average Useful Life Customer relationships $ 50.4 9 years Technology 22.5 10 years Trademarks 56.0 20 years $ 128.9 The acquired identifiable intangible assets of Lely as of the date of the acquisition are summarized in the following table (in millions): Intangible Asset Amount Weighted-Average Useful Life Customer relationships $ 3.0 5 years Technology 3.0 12 years Trademarks 1.6 10 years $ 7.6 |
Restructuring Expenses (Tables)
Restructuring Expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | The components of the restructuring expenses are summarized as follows (in millions): Write-down of Property, Plant and Equipment Employee Severance Facility Closure Costs Total Balance as of December 31, 2014 $ — $ 25.3 $ 0.1 $ 25.4 2015 provision — 23.0 — 23.0 2015 provision reversal — (0.7 ) — (0.7 ) 2015 cash activity — (29.4 ) (0.1 ) (29.5 ) Foreign currency translation — (1.3 ) — (1.3 ) Balance as of December 31, 2015 — 16.9 — 16.9 2016 provision — 11.0 1.0 12.0 2016 provision reversal — (0.1 ) — (0.1 ) 2016 cash activity — (13.1 ) (0.2 ) (13.3 ) Foreign currency translation — (0.2 ) — (0.2 ) Balance as of December 31, 2016 — 14.5 0.8 15.3 2017 provision 0.2 12.4 — 12.6 Less: Non-cash expense (0.2 ) — — (0.2 ) Cash expense — 12.4 — 12.4 2017 provision reversal — (1.4 ) — (1.4 ) 2017 cash activity — (16.0 ) (0.8 ) (16.8 ) Foreign currency translation — 1.4 — 1.4 Balance as of December 31, 2017 $ — $ 10.9 $ — $ 10.9 |
Investments in Affiliates (Tabl
Investments in Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Investments in and Advances to Affiliates | Investments in affiliates as of December 31, 2017 and 2016 were as follows (in millions): 2017 2016 Finance joint ventures $ 373.7 $ 380.8 Manufacturing joint ventures 20.1 17.8 Other affiliates 15.2 16.3 $ 409.0 $ 414.9 |
Schedule of Equity Method Investments | Summarized combined financial information of the Company’s finance joint ventures as of December 31, 2017 and 2016 and for the years ended December 31, 2017 , 2016 and 2015 were as follows (in millions): As of December 31, 2017 2016 Total assets $ 8,440.0 $ 7,448.0 Total liabilities 7,677.3 6,670.8 Partners’ equity 762.7 777.2 For the Years Ended December 31, 2017 2016 2015 Revenues $ 305.7 $ 297.4 $ 313.0 Costs 183.0 159.0 158.1 Income before income taxes $ 122.7 $ 138.4 $ 154.9 The Company’s equity in net earnings of affiliates for the years ended December 31, 2017 , 2016 and 2015 were as follows (in millions): 2017 2016 2015 Finance joint ventures $ 39.9 $ 45.5 $ 53.8 Manufacturing and other joint ventures (0.8 ) 2.0 3.3 $ 39.1 $ 47.5 $ 57.1 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The sources of income before income taxes and equity in net earnings of affiliates were as follows for the years ended December 31, 2017 , 2016 and 2015 (in millions): 2017 2016 2015 United States $ (141.6 ) $ (150.0 ) $ (49.1 ) Foreign 425.4 354.9 328.5 Income before income taxes and equity in net earnings of affiliates $ 283.8 $ 204.9 $ 279.4 |
Schedule of Components of Income Tax Expense (Benefit) | The provision (benefit) for income taxes by location of the taxing jurisdiction for the years ended December 31, 2017 , 2016 and 2015 consisted of the following (in millions): 2017 2016 2015 Current: United States: Federal $ 20.3 $ (24.3 ) $ (1.3 ) State 0.6 0.2 2.8 Foreign 126.8 114.2 97.8 147.7 90.1 99.3 Deferred: United States: Federal 0.9 21.9 (19.0 ) State — — — Foreign (15.0 ) (19.8 ) (7.8 ) (14.1 ) 2.1 (26.8 ) $ 133.6 $ 92.2 $ 72.5 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of income taxes computed at the United States federal statutory income tax rate ( 35% ) to the provision for income taxes reflected in the Company’s Consolidated Statements of Operations for the years ended December 31, 2017 , 2016 and 2015 is as follows (in millions): 2017 2016 2015 Provision for income taxes at United States federal statutory rate of 35% $ 99.3 $ 71.7 $ 97.8 State and local income taxes, net of federal income tax effects (5.7 ) (6.0 ) (2.0 ) Taxes on foreign income which differ from the United States statutory rate (57.7 ) (44.5 ) (34.9 ) Tax effect of permanent differences 60.6 14.4 7.1 Change in valuation allowance (1.4 ) 37.9 (4.5 ) Change in tax contingency reserves 3.8 23.4 15.4 Research and development tax credits (5.0 ) (3.8 ) (4.9 ) Impacts related to the 2017 Tax Act 42.0 — — Other (2.3 ) (0.9 ) (1.5 ) $ 133.6 $ 92.2 $ 72.5 |
Schedule of Deferred Tax Assets and Liabilities | The significant components of the deferred tax assets and liabilities at December 31, 2017 and 2016 were as follows (in millions): 2017 2016 Deferred Tax Assets: Net operating loss carryforwards $ 83.4 $ 85.5 Sales incentive discounts 60.2 73.7 Inventory valuation reserves 34.4 39.9 Pensions and postretirement health care benefits 52.2 70.4 Warranty and other reserves 92.2 118.1 Research and development tax credits 2.9 11.2 Foreign tax credits 10.4 24.0 Other 19.2 24.6 Total gross deferred tax assets 354.9 447.4 Valuation allowance (81.9 ) (116.0 ) Total net deferred tax assets 273.0 331.4 Deferred Tax Liabilities: Tax over book depreciation and amortization 229.1 284.9 Investment in affiliates 53.9 45.6 Other 8.3 13.6 Total deferred tax liabilities 291.3 344.1 Net deferred tax (liabilities) assets $ (18.3 ) $ (12.7 ) Amounts recognized in Consolidated Balance Sheets: Deferred tax assets - noncurrent $ 112.2 $ 99.7 Deferred tax liabilities - noncurrent (130.5 ) (112.4 ) $ (18.3 ) $ (12.7 ) |
Summary of Income Tax Contingencies | A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits as of and during the years ended December 31, 2017 and 2016 is as follows (in millions): 2017 2016 Gross unrecognized income tax benefits $ 139.9 $ 133.0 Additions for tax positions of the current year 16.4 14.4 Additions for tax positions of prior years 4.8 15.2 Reductions for tax positions of prior years for: Changes in judgments 1.4 (1.2 ) Settlements during the year (0.4 ) (13.8 ) Lapses of applicable statute of limitations (14.4 ) (5.0 ) Foreign currency translation 15.7 (2.7 ) Gross unrecognized income tax benefits $ 163.4 $ 139.9 |
Indebtedness (Tables)
Indebtedness (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Components of Indebtedness | Indebtedness consisted of the following at December 31, 2017 and 2016 (in millions): December 31, 2017 December 31, 2016 1.056% Senior term loan due 2020 $ 239.8 $ 211.0 Credit facility, expires 2020 471.2 329.2 Senior term loans due 2021 119.9 316.5 5 7 /8 % Senior notes due 2021 305.3 306.6 Senior term loans due between 2019 and 2026 449.7 395.6 Other long-term debt 131.6 141.6 Debt issuance costs (4.0 ) (5.1 ) 1,713.5 1,695.4 Less: Current portion of other long-term debt (95.4 ) (85.4 ) Total indebtedness, less current portion $ 1,618.1 $ 1,610.0 |
Maturities of Long-term Debt | At December 31, 2017 , the aggregate scheduled maturities of long-term debt, excluding the current portion of long-term debt, are as follows (in millions): 2019 $ 81.0 2020 721.9 2021 655.4 2022 2.5 Thereafter 157.3 $ 1,618.1 |
Schedule of Debt Terms | Interest is payable on the term loans in arrears either semi-annually or annually as provided below (in millions): Maturity Date Floating or Fixed Interest Rate Interest Rate Interest Payment Term Loan Amount October 19, 2019 Floating EURIBOR + 0.75% Semi-Annually € 1.0 October 19, 2019 Fixed 0.75% Annually 55.0 October 19, 2021 Floating EURIBOR + 1.00% Semi-Annually 25.5 October 19, 2021 Fixed 1.00% Annually 166.5 October 19, 2023 Floating EURIBOR + 1.25% Semi-Annually 1.0 October 19, 2023 Fixed 1.33% Annually 73.5 October 19, 2026 Fixed 1.98% Annually 52.5 € 375.0 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Defined Benefit Plans | The following tables set forth reconciliations of the changes in benefit obligation, plan assets and funded status as of December 31, 2017 and 2016 (in millions): Pension and ENPP Benefits Postretirement Benefits Change in benefit obligation 2017 2016 2017 2016 Benefit obligation at beginning of year $ 849.8 $ 844.4 $ 28.6 $ 27.3 Service cost 17.1 16.2 0.1 — Interest cost 20.6 24.6 1.4 1.4 Plan participants’ contributions 1.1 1.1 — — Actuarial losses 0.5 121.9 1.8 0.6 Amendments — 3.3 — — Settlements (0.7 ) (3.8 ) — — Curtailments — (0.4 ) — — Benefits paid (42.6 ) (44.1 ) (1.6 ) (1.2 ) Foreign currency exchange rate changes 70.9 (113.4 ) (0.1 ) 0.5 Benefit obligation at end of year $ 916.7 $ 849.8 $ 30.2 $ 28.6 Pension and ENPP Benefits Postretirement Benefits Change in plan assets 2017 2016 2017 2016 Fair value of plan assets at beginning of year $ 601.7 $ 630.7 $ — $ — Actual return on plan assets 47.3 84.4 — — Employer contributions 30.3 31.3 1.6 1.2 Plan participants’ contributions 1.1 1.1 — — Benefits paid (42.6 ) (44.1 ) (1.6 ) (1.2 ) Settlements (0.7 ) (3.8 ) — — Foreign currency exchange rate changes 54.7 (97.9 ) — — Fair value of plan assets at end of year $ 691.8 $ 601.7 $ — $ — Funded status $ (224.9 ) $ (248.1 ) $ (30.2 ) $ (28.6 ) Unrecognized net actuarial losses 360.1 384.7 3.8 2.0 Unrecognized prior service cost 12.2 13.4 3.2 3.4 Accumulated other comprehensive loss (372.3 ) (398.1 ) (7.0 ) (5.4 ) Net amount recognized $ (224.9 ) $ (248.1 ) $ (30.2 ) $ (28.6 ) Amounts recognized in Consolidated Balance Sheets: Other current liabilities (3.9 ) (3.5 ) (1.6 ) (1.5 ) Accrued expenses (2.3 ) (1.7 ) — — Pensions and postretirement health care benefits (noncurrent) (218.7 ) (242.9 ) (28.6 ) (27.1 ) Net amount recognized $ (224.9 ) $ (248.1 ) $ (30.2 ) $ (28.6 ) |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table sets forth changes in accumulated other comprehensive loss by component, net of tax, attributed to AGCO Corporation and its subsidiaries for the years ended December 31, 2017 and 2016 (in millions): Defined Benefit Pension Plans Cumulative Translation Adjustment Deferred Net Gains (Losses) on Derivatives Total Accumulated other comprehensive loss, December 31, 2015 $ (249.0 ) $ (1,209.2 ) $ (2.0 ) $ (1,460.2 ) Other comprehensive loss before reclassifications (65.2 ) 80.8 (7.7 ) 7.9 Net losses reclassified from accumulated other comprehensive loss 9.7 — 1.0 10.7 Other comprehensive (loss) income, net of reclassification adjustments (55.5 ) 80.8 (6.7 ) 18.6 Accumulated other comprehensive loss, December 31, 2016 (304.5 ) (1,128.4 ) (8.7 ) (1,441.6 ) Other comprehensive income before reclassifications 6.8 56.6 2.0 65.4 Net losses reclassified from accumulated other comprehensive loss 12.6 — 2.0 14.6 Other comprehensive income, net of reclassification adjustments 19.4 56.6 4.0 80.0 Accumulated other comprehensive loss, December 31, 2017 $ (285.1 ) $ (1,071.8 ) $ (4.7 ) $ (1,361.6 ) |
Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | Changing the assumed health care cost trend rates by one percentage point each year and holding all other assumptions constant would have had the following effect to service and interest cost for 2017 and the accumulated postretirement benefit obligation for both the U.S. and Brazilian postretirement plans at December 31, 2017 (in millions): One Percentage Point Increase One Percentage Point Decrease Effect on service and interest cost $ 0.2 $ (0.1 ) Effect on accumulated postretirement benefit obligation $ 3.9 $ (3.2 ) |
Pension Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Net Pension And Postretirement Cost | Net annual pension costs for the years ended December 31, 2017 , 2016 and 2015 for the Company’s defined benefit pension plans and ENPP are set forth below (in millions): Pension benefits 2017 2016 2015 Service cost $ 17.1 $ 16.2 $ 18.7 Interest cost 20.6 24.6 31.2 Expected return on plan assets (35.9 ) (38.8 ) (44.4 ) Amortization of net actuarial losses 13.4 10.0 8.0 Amortization of prior service cost 1.2 1.0 0.4 Net loss recognized due to settlement 0.2 0.4 0.2 Net gain recognized due to curtailment — (0.1 ) — Special termination benefits — — 0.5 Net annual pension cost $ 16.6 $ 13.3 $ 14.6 |
Assumptions Used | The weighted average assumptions used to determine the benefit obligation for the Company’s defined benefit pension plans and ENPP as of December 31, 2017 and 2016 are as follows: 2017 2016 All plans: Weighted average discount rate 2.5 % 2.7 % Rate of increase in future compensation 1.75%-5.0% 1.5%-5.0% U.S.-based plans: Weighted average discount rate 3.70 % 4.25 % Rate of increase in future compensation (1) 5.0 % 5.0 % ____________________________________ (1) Applicable for U.S. unfunded, nonqualified plan. The weighted average assumptions used to determine the net annual pension costs for the Company’s defined benefit pension plans and ENPP for the years ended December 31, 2017 , 2016 and 2015 are as follows: 2017 2016 2015 All plans: Weighted average discount rate 2.7 % 3.6 % 3.5 % Weighted average expected long-term rate of return on plan assets 5.8 % 6.8 % 6.8 % Rate of increase in future compensation 1.5%-5.0% 2.0%-5.0% 2.25%-5.0% U.S.-based plans: Weighted average discount rate 4.25 % 4.60 % 4.15 % Weighted average expected long-term rate of return on plan assets (1) 6.0 % 6.0 % 6.0 % Rate of increase in future compensation (2) 5.0 % 5.0 % 5.0 % ___________________________________ (1) Applicable for U.S. funded, qualified plans. (2) Applicable for U.S. unfunded, nonqualified plan. |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the activity in accumulated other comprehensive loss related to the Company’s ENPP and defined pension and postretirement benefit plans during the years ended December 31, 2017 and 2016 (in millions): Before-Tax Amount Income Tax After-Tax Amount Accumulated other comprehensive loss as of December 31, 2015 $ (336.6 ) $ (87.6 ) $ (249.0 ) Prior service cost arising during the year (3.3 ) (0.7 ) (2.6 ) Net loss recognized due to settlement 0.5 0.1 0.4 Net gain recognized due to curtailment (0.1 ) — (0.1 ) Net actuarial loss arising during the year (76.5 ) (13.6 ) (62.9 ) Amortization of prior service cost 1.2 0.1 1.1 Amortization of net actuarial losses 10.0 1.4 8.6 Accumulated other comprehensive loss as of December 31, 2016 $ (404.8 ) $ (100.3 ) $ (304.5 ) Net loss recognized due to settlement 0.3 0.1 0.2 Net actuarial gain arising during the year 9.0 2.4 6.6 Amortization of prior service cost 1.4 0.1 1.3 Amortization of net actuarial losses 13.5 2.2 11.3 Accumulated other comprehensive loss as of December 31, 2017 $ (380.6 ) $ (95.5 ) $ (285.1 ) |
Expected Benefit Payments | At December 31, 2017 , the aggregate expected benefit payments for the Company’s defined benefit pension plans and ENPP are as follows (in millions): 2018 $ 47.6 2019 46.6 2020 48.5 2021 49.4 2022 50.0 2023 through 2027 271.6 $ 513.7 |
Allocation of Plan Assets | The fair value of the Company’s pension assets as of December 31, 2017 is as follows (in millions): Total Level 1 Level 2 Level 3 Equity securities: Global equities $ 121.7 $ 121.7 $ — $ — Non-U.S. equities 4.3 4.3 — — U.K. equities 129.9 129.9 — — U.S. large cap equities 6.9 6.9 — — U.S. small cap equities 4.4 4.4 — — Total equity securities 267.2 267.2 — — Fixed income: Aggregate fixed income 136.0 136.0 — — International fixed income 214.4 214.4 — — Total fixed income share (1) 350.4 350.4 — — Alternative investments: Private equity fund 2.4 — — 2.4 Hedge funds measured at net asset value (4) 34.8 — — — Total alternative investments (2) 37.2 — — 2.4 Miscellaneous funds (3) 25.4 — — 25.4 Cash and equivalents measured at net asset value (4) 11.6 — — — Total assets $ 691.8 $ 617.6 $ — $ 27.8 ______________________________________ (1) 30% of “fixed income” securities are in investment-grade corporate bonds; 29% are in government treasuries; 15% are in foreign securities; 13% are in high-yield securities; and 13% are in other various fixed income securities. (2) 39% of “alternative investments” are in relative value funds; 26% are in long-short equity funds; 21% are in event-driven funds; 8% are distributed in hedged and non-hedged funds; and 6% are in credit funds. (3) “Miscellaneous funds” is comprised of insurance contracts in Finland, Norway and Switzerland. (4) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value of the Company’s pension assets as of December 31, 2016 is as follows (in millions): Total Level 1 Level 2 Level 3 Equity securities: Global equities $ 103.6 $ 103.6 $ — $ — Non-U.S. equities 4.1 4.1 — — U.K. equities 109.1 109.1 — — U.S. large cap equities 6.2 6.2 — — U.S. small cap equities 4.3 4.3 — — Total equity securities 227.3 227.3 — — Fixed income: Aggregate fixed income 118.0 118.0 — — International fixed income 191.9 191.9 — — Total fixed income share (1) 309.9 309.9 — — Alternative investments: Private equity fund 2.4 — — 2.4 Hedge funds measured at net asset value (4) 34.4 — — — Total alternative investments (2) 36.8 — — 2.4 Miscellaneous funds (3) 21.4 — — 21.4 Cash and equivalents measured at net asset value (4) 6.3 — — — Total assets $ 601.7 $ 537.2 $ — $ 23.8 _______________________________________ (1) 31% of “fixed income” securities are in foreign securities; 25% are in government treasuries; 19% are in investment-grade corporate bonds; 13% are in high-yield securities; and 12% are in other various fixed income securities. (2) 32% of “alternative investments” are in relative value funds; 27% are in long-short equity funds; 23% are in event-driven funds; 12% are distributed in hedged and non-hedged funds; and 6% are in credit funds. (3) “Miscellaneous funds” is comprised of insurance contracts in Finland, Norway and Switzerland. (4) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. |
Reconciliation of Significant Unobservable Inputs, Changes in Plan Assets | The following is a reconciliation of Level 3 assets as of December 31, 2017 (in millions): Total Alternative Investments Miscellaneous Funds Beginning balance as of December 31, 2016 $ 23.8 $ 2.4 $ 21.4 Actual return on plan assets: (a) Relating to assets still held at reporting date (2.3 ) (0.1 ) (2.2 ) (b) Relating to assets sold during period — — — Purchases, sales and /or settlements 3.4 0.1 3.3 Foreign currency exchange rate changes 2.9 — 2.9 Ending balance as of December 31, 2017 $ 27.8 $ 2.4 $ 25.4 The following is a reconciliation of Level 3 assets as of December 31, 2016 (in millions): Total Alternative Investments Miscellaneous Funds Beginning balance as of December 31, 2015 $ 24.1 $ 2.4 $ 21.7 Actual return on plan assets: (a) Relating to assets still held at reporting date 1.0 — 1.0 (b) Relating to assets sold during period — — — Purchases, sales and /or settlements (0.8 ) — (0.8 ) Foreign currency exchange rate changes (0.5 ) — (0.5 ) Ending balance as of December 31, 2016 $ 23.8 $ 2.4 $ 21.4 |
Postretirement Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Net Pension And Postretirement Cost | Net annual postretirement benefit costs, and the weighted average discount rate used to determine them, for the years ended December 31, 2017 , 2016 and 2015 are set forth below (in millions, except percentages): Postretirement benefits 2017 2016 2015 Service cost $ 0.1 $ — $ — Interest cost 1.4 1.4 1.3 Amortization of prior service cost 0.2 0.2 0.2 Amortization of net actuarial losses 0.1 — 0.1 Net annual postretirement benefit cost $ 1.8 $ 1.6 $ 1.6 Weighted average discount rate 5.3 % 5.1 % 4.6 % |
Expected Benefit Payments | At December 31, 2017 , the aggregate expected benefit payments for the Company’s U.S. and Brazilian postretirement benefit plans are as follows (in millions): 2018 $ 1.6 2019 1.7 2020 1.7 2021 1.8 2022 1.8 2023 through 2027 9.4 $ 18.0 |
Foreign Plan [Member] | Pension Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Allocation of Plan Assets | The weighted average asset allocation of the Company’s non-U.S. pension benefit plans as of December 31, 2017 and 2016 are as follows: Asset Category 2017 2016 Equity securities 40 % 39 % Fixed income securities 53 % 54 % Other investments 7 % 7 % Total 100 % 100 % |
UNITED STATES | Pension Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Allocation of Plan Assets | The weighted average asset allocation of the Company’s U.S. pension benefit plans as of December 31, 2017 and 2016 are as follows: Asset Category 2017 2016 Large and small cap domestic equity securities 31 % 29 % International equity securities 12 % 11 % Domestic fixed income securities 43 % 42 % Other investments 14 % 18 % Total 100 % 100 % |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table sets forth changes in accumulated other comprehensive loss by component, net of tax, attributed to AGCO Corporation and its subsidiaries for the years ended December 31, 2017 and 2016 (in millions): Defined Benefit Pension Plans Cumulative Translation Adjustment Deferred Net Gains (Losses) on Derivatives Total Accumulated other comprehensive loss, December 31, 2015 $ (249.0 ) $ (1,209.2 ) $ (2.0 ) $ (1,460.2 ) Other comprehensive loss before reclassifications (65.2 ) 80.8 (7.7 ) 7.9 Net losses reclassified from accumulated other comprehensive loss 9.7 — 1.0 10.7 Other comprehensive (loss) income, net of reclassification adjustments (55.5 ) 80.8 (6.7 ) 18.6 Accumulated other comprehensive loss, December 31, 2016 (304.5 ) (1,128.4 ) (8.7 ) (1,441.6 ) Other comprehensive income before reclassifications 6.8 56.6 2.0 65.4 Net losses reclassified from accumulated other comprehensive loss 12.6 — 2.0 14.6 Other comprehensive income, net of reclassification adjustments 19.4 56.6 4.0 80.0 Accumulated other comprehensive loss, December 31, 2017 $ (285.1 ) $ (1,071.8 ) $ (4.7 ) $ (1,361.6 ) |
Schedule of reclassifications out of AOCI | The following table sets forth reclassification adjustments out of accumulated other comprehensive loss by component attributed to AGCO Corporation and its subsidiaries for the years ended December 31, 2017 and 2016 (in millions): Details about Accumulated Other Comprehensive Loss Components Amount Reclassified from Accumulated Other Comprehensive Loss Affected Line Item within the Consolidated Statements of Operations Year ended December 31, 2017 (1) Year ended December 31, 2016 (1) Derivatives: Net gains on foreign currency contracts $ (0.2 ) $ (1.0 ) Cost of goods sold Net losses on interest rate contract 2.4 2.0 Interest expense, net Reclassification before tax 2.2 1.0 (0.2 ) — Income tax provision Reclassification net of tax $ 2.0 $ 1.0 Defined benefit pension plans: Amortization of net actuarial losses $ 13.5 $ 10.0 (2) Amortization of prior service cost 1.4 1.2 (2) Reclassification before tax 14.9 11.2 (2.3 ) (1.5 ) Income tax provision Reclassification net of tax $ 12.6 $ 9.7 Net losses reclassified from accumulated other comprehensive loss $ 14.6 $ 10.7 ____________________________________ (1) (Gains) losses included within the Consolidated Statements of Operations for the years ended December 31, 2017 and 2016 , respectively. (2) These accumulated other comprehensive loss components are included in the computation of net periodic pension and postretirement benefit cost. See Note 8 to the Company’s Consolidated Financial Statements. |
Stock Incentive Plan (Tables)
Stock Incentive Plan (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Share-based Compensation [Abstract] | |
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period, weighted average grant date fair value | The weighted average grant-date fair value of performance awards granted under the 2006 Plan during 2017 , 2016 and 2015 was as follows: Years Ended December 31, 2017 2016 2015 Weighted average grant-date fair value $ 61.94 $ 47.93 $ 45.54 |
Performance Award Transactions | Performance award transactions during 2017 were as follows and are presented as if the Company were to achieve its maximum levels of performance under the plan: Shares awarded but not earned at January 1 1,982,120 Shares awarded 539,598 Shares forfeited or unearned (876,640 ) Shares earned and vested — Shares awarded but not earned at December 31 1,645,078 |
Restricted Stock Unit Award Transactions | RSU transactions during the year ended December 31, 2017 were as follows: Shares awarded but not vested at January 1 222,730 Shares awarded 111,166 Shares forfeited (7,783 ) Shares vested (88,645 ) Shares awarded but not vested at December 31 237,468 |
Weighted Average Grant-Date Fair Value Of SSARS And Assumptions Under Black-Scholes Option Model | The weighted average grant-date fair value of SSARs granted under the 2006 Plan and the weighted average assumptions under the Black-Scholes option model were as follows for the years ended December 31, 2017 , 2016 and 2015 : Years Ended December 31, 2017 2016 2015 Weighted average grant-date fair value $ 11.45 $ 7.98 $ 7.41 Weighted average assumptions under Black-Scholes option model: Expected life of awards (years) 3.0 3.0 3.0 Risk-free interest rate 1.5 % 1.1 % 0.9 % Expected volatility 25.9 % 25.9 % 25.9 % Expected dividend yield 0.9 % 1.1 % 1.1 % |
SSAR Activity | SSAR transactions during the year ended December 31, 2017 were as follows: SSARs outstanding at January 1 1,458,611 SSARs granted 286,200 SSARs exercised (670,269 ) SSARs canceled or forfeited (14,350 ) SSARs outstanding at December 31 1,060,192 SSAR price ranges per share: Granted $ 63.47-70.41 Exercised 32.01-55.23 Canceled or forfeited 32.01-63.47 Weighted average SSAR exercise prices per share: Granted $ 63.51 Exercised 52.04 Canceled or forfeited 48.42 Outstanding at December 31 52.48 |
Schedule Of SSAR Exercise Price Range, Number Of Shares, Weighted Average Exercise Price And Remaining Contractual Lives | The following table sets forth the exercise price range, number of shares, weighted average exercise price, and remaining contractual lives by groups of similar price as of December 31, 2017 : SSARs Outstanding SSARs Exercisable Range of Exercise Prices Number of Shares Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Exercisable as of December 31, 2017 Weighted Average Exercise Price $43.39-$52.94 614,600 4.1 $ 46.35 248,975 $ 47.62 $55.07-$70.41 445,592 5.0 $ 60.94 99,067 $ 57.11 1,060,192 348,042 $ 50.32 |
Derivative Instruments and He34
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Derivative Instruments [Table Text Block] | The following table summarizes the notional values and the after-tax impact of changes in the fair value of the instrument designated as a net investment hedge (in millions): Notional Amount as of (Loss) Gain Recognized in Accumulated Other Comprehensive Loss for the Years Ended December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 Foreign currency denominated debt $ 374.2 $ 329.2 $ (45.0 ) $ 12.7 |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] | The following table summarizes the impact that changes in the fair value of derivatives not designated as hedging instruments had on earnings (in millions): For the Years Ended Classification of Gain (Loss) December 31, 2017 December 31, 2016 December 31, 2015 Foreign currency contracts Other expense, net $ 38.3 $ (5.7 ) $ (67.3 ) |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block] | The following table summarizes the after-tax impact that changes in the fair value of derivatives designated as cash flow hedges had on accumulated other comprehensive loss and earnings during 2017 , 2016 and 2015 (in millions): Recognized in Earnings Gain (Loss) Recognized in Accumulated Other Comprehensive Loss Classification of Gain (Loss) Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income 2017 Foreign currency contracts (1) $ 2.7 Cost of goods sold $ 0.4 Interest rate contract (0.7 ) Interest expense, net (2.4 ) Total $ 2.0 $ (2.0 ) 2016 Foreign currency contracts $ (2.6 ) Cost of goods sold $ 1.0 Interest rate contract (5.1 ) Interest expense, net (2.0 ) Total $ (7.7 ) $ (1.0 ) 2015 Foreign currency contracts $ (2.3 ) Cost of goods sold $ (2.4 ) Interest rate contract (2.3 ) Interest expense, net (0.3 ) Total $ (4.6 ) $ (2.7 ) (1) The outstanding contracts as of December 31, 2017 range in maturity through December 2018. |
Summary Of Accumulated Other Comprehensive Loss Related To Derivatives | The following table summarizes the activity in accumulated other comprehensive loss related to the derivatives held by the Company during the years ended December 31, 2017 , 2016 and 2015 (in millions): Before-Tax Amount Income Tax After-Tax Amount Accumulated derivative net losses as of December 31, 2014 $ (0.2 ) $ (0.1 ) $ (0.1 ) Net changes in fair value of derivatives (6.2 ) (1.6 ) (4.6 ) Net losses reclassified from accumulated other comprehensive loss into income 3.1 0.4 2.7 Accumulated derivative net losses as of December 31, 2015 (3.3 ) (1.3 ) (2.0 ) Net changes in fair value of derivatives (7.8 ) (0.1 ) (7.7 ) Net losses reclassified from accumulated other comprehensive loss into income 1.0 — 1.0 Accumulated derivative net losses as of December 31, 2016 (10.1 ) (1.4 ) (8.7 ) Net changes in fair value of derivatives 1.9 (0.1 ) 2.0 Net losses reclassified from accumulated other comprehensive loss into income 2.2 0.2 2.0 Accumulated derivative net losses as of December 31, 2017 $ (6.0 ) $ (1.3 ) $ (4.7 ) |
Fair Value Of Derivative Instruments | The table below sets forth the fair value of derivative instruments as of December 31, 2017 (in millions): Asset Derivatives as of December 31, 2017 Liability Derivatives as of December 31, 2017 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivative instruments designated as hedging instruments: Foreign currency contracts Other current assets $ — Other current liabilities $ 1.2 Interest rate contract Other noncurrent assets — Other noncurrent liabilities 4.8 Derivative instruments not designated as hedging instruments: Foreign currency contracts Other current assets 7.8 Other current liabilities 11.0 Total derivative instruments $ 7.8 $ 17.0 The table below sets forth the fair value of derivative instruments as of December 31, 2016 (in millions): Asset Derivatives as of December 31, 2016 Liability Derivatives as of December 31, 2016 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivative instruments designated as hedging instruments: Foreign currency contracts Other current assets $ 0.2 Other current liabilities $ 3.9 Interest rate contract Other noncurrent assets — Other noncurrent liabilities 6.4 Derivative instruments not designated as hedging instruments: Foreign currency contracts Other current assets 6.3 Other current liabilities 3.1 Total derivative instruments $ 6.5 $ 13.4 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future payments required for significant commitments | The future payments required under the Company’s significant commitments, excluding indebtedness, as of December 31, 2017 are as follows (in millions): Payments Due By Period 2018 2019 2020 2021 2022 Thereafter Total Interest payments related to indebtedness (1) $ 29.2 $ 26.8 $ 47.3 $ 20.9 $ 2.5 $ 5.7 $ 132.4 Capital lease obligations 5.5 3.8 2.4 1.5 1.1 3.5 17.8 Operating lease obligations 47.5 30.0 21.7 16.3 12.1 39.6 167.2 Unconditional purchase obligations (2) 64.4 7.3 2.2 0.9 0.1 — 74.9 Other short-term and long-term obligations (3) 105.8 71.0 50.1 60.2 33.1 35.9 356.1 Total contractual cash obligations $ 252.4 $ 138.9 $ 123.7 $ 99.8 $ 48.9 $ 84.7 $ 748.4 ____________________________________ (1) Estimated interest payments are calculated assuming current interest rates over minimum maturity periods specified in debt agreements. Debt may be repaid sooner or later than such minimum maturity periods (unaudited). (2) Unconditional purchase obligations exclude routine purchase orders entered into in the normal course of business. (3) Other short-term and long-term obligations include estimates of future minimum contribution requirements under the Company’s U.S. and non-U.S. defined benefit pension and postretirement plans. These estimates are based on current legislation in the countries the Company operates within and are subject to change. Other short-term and long-term obligations also include income tax liabilities related to uncertain income tax positions connected with ongoing income tax audits in various jurisdictions (unaudited). |
Schedule of guarantor obligations | Amount of Commitment Expiration Per Period 2018 2019 2020 2021 2022 Thereafter Total Guarantees $ 109.2 $ 2.8 $ 2.0 $ 0.9 $ 0.2 $ — $ 115.1 |
Fair Value of Financial Instr36
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities measured at fair value | Assets and liabilities measured at fair value on a recurring basis as of December 31, 2017 and 2016 are summarized below (in millions): As of December 31, 2017 Level 1 Level 2 Level 3 Total Derivative assets $ — $ 7.8 $ — $ 7.8 Derivative liabilities $ — $ 17.0 $ — $ 17.0 As of December 31, 2016 Level 1 Level 2 Level 3 Total Derivative assets $ — $ 6.5 $ — $ 6.5 Derivative liabilities $ — $ 13.4 $ — $ 13.4 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Sales Information By Reportable Segments | Segment results for the years ended December 31, 2017 , 2016 and 2015 based on the Company’s current reportable segments are as follows (in millions): Years Ended December 31, North America South America Europe/ Middle East Asia/Pacific/Africa Consolidated 2017 Net sales $ 1,876.7 $ 1,063.5 $ 4,614.3 $ 752.0 $ 8,306.5 Income from operations 64.7 14.5 500.0 48.8 628.0 Depreciation 61.5 30.5 113.0 17.8 222.8 Assets 1,064.1 752.1 2,074.4 499.4 4,390.0 Capital expenditures 59.1 43.0 92.9 8.9 203.9 2016 Net sales $ 1,807.7 $ 917.5 $ 4,089.7 $ 595.6 $ 7,410.5 Income from operations 39.1 19.9 409.4 19.7 488.1 Depreciation 62.5 22.9 116.6 21.4 223.4 Assets 978.5 739.4 1,635.2 426.3 3,779.4 Capital expenditures 45.3 56.0 90.1 9.6 201.0 2015 Net sales $ 1,965.0 $ 949.0 $ 4,037.6 $ 515.7 $ 7,467.3 Income (loss) from operations 123.4 34.4 401.3 (12.2 ) 546.9 Depreciation 62.7 20.9 120.3 13.5 217.4 Assets 984.4 495.7 1,732.9 396.5 3,609.5 Capital expenditures 48.6 28.6 95.4 38.8 211.4 |
Income From Operations And Total Assets | A reconciliation from the segment information to the consolidated balances for income from operations and total assets is set forth below (in millions): 2017 2016 2015 Segment income from operations $ 628.0 $ 488.1 $ 546.9 Corporate expenses (120.9 ) (119.7 ) (109.2 ) Stock compensation expense (35.6 ) (16.9 ) (11.6 ) Restructuring expenses (11.2 ) (11.9 ) (22.3 ) Amortization of intangibles (57.0 ) (51.2 ) (42.7 ) Consolidated income from operations $ 403.3 $ 288.4 $ 361.1 Segment assets $ 4,390.0 $ 3,779.4 $ 3,609.5 Cash and cash equivalents 367.7 429.7 426.7 Investments in affiliates 409.0 414.9 392.9 Deferred tax assets, other current and noncurrent assets 614.6 560.7 446.4 Intangible assets, net 649.0 607.3 507.7 Goodwill 1,541.4 1,376.4 1,114.5 Consolidated total assets $ 7,971.7 $ 7,168.4 $ 6,497.7 |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area | Net sales by customer location for the years ended December 31, 2017 , 2016 and 2015 were as follows (in millions): 2017 2016 2015 Net sales: United States $ 1,445.7 $ 1,404.6 $ 1,624.0 Canada 296.9 286.7 233.6 Germany 997.4 891.2 913.2 France 815.7 746.9 762.6 United Kingdom and Ireland 512.6 440.7 414.5 Finland and Scandinavia 721.3 677.7 637.0 Other Europe 1,396.0 1,127.9 1,077.7 South America 1,046.0 898.2 932.3 Middle East and Algeria 171.3 205.4 232.8 Africa 138.1 116.2 113.6 Asia 366.4 266.8 201.0 Australia and New Zealand 247.4 212.6 201.1 Mexico, Central America and Caribbean 151.7 135.6 123.9 $ 8,306.5 $ 7,410.5 $ 7,467.3 |
Revenue from External Customers by Products and Services | Net sales by product for the years ended December 31, 2017 , 2016 and 2015 were as follows (in millions): 2017 2016 2015 Net sales: Tractors $ 4,785.2 $ 4,225.1 $ 4,244.1 Replacement parts 1,305.0 1,211.3 1,204.4 Grain storage and protein production systems 1,049.6 892.5 766.2 Other machinery 582.5 521.6 629.6 Combines 349.0 302.8 331.9 Application equipment 235.2 257.2 291.1 $ 8,306.5 $ 7,410.5 $ 7,467.3 |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country | Property, plant and equipment and amortizable intangible assets by country as of December 31, 2017 and 2016 was as follows (in millions): 2017 2016 United States $ 647.9 $ 594.6 Germany 405.5 344.8 Brazil 217.9 210.4 Finland 149.9 145.9 China 127.7 130.0 Denmark 125.7 119.6 Italy 123.0 106.7 France 66.0 59.9 Other 182.1 172.3 $ 2,045.7 $ 1,884.2 |
Operations and Summary of Sig38
Operations and Summary of Significant Accounting Policies (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2017USD ($)Independent_Dealers_Distributors | Dec. 31, 2016USD ($) | |
Accounting Policies [Line Items] | ||
Number of Independent Dealers and Distributors (more than) | Independent_Dealers_Distributors | 4,200 | |
Time period in which remaining installment balance is generally due | 12 months | |
Revenue Recognition [Abstract] | ||
Interest Free Period on Receivables | 12 months | |
Cash and Cash Equivalents [Abstract] | ||
Cash | $ 317 | $ 386.2 |
Cash Equivalents | $ 50.7 | $ 43.5 |
Equipment Sales | United States and Canada | ||
Revenue Recognition [Abstract] | ||
Payment period on product sales | 12 months | |
Replacement parts | United States and Canada | ||
Revenue Recognition [Abstract] | ||
Payment period on product sales | 30 days | |
Grain storage and protein production systems | United States and Canada | ||
Revenue Recognition [Abstract] | ||
Payment period on product sales | 30 days | |
Large Seasonal Products | United States and Canada | ||
Revenue Recognition [Abstract] | ||
Payment period on product sales | 6 months | |
Minimum | ||
Accounting Policies [Line Items] | ||
Ownership percentage | 20.00% | |
Revenue Recognition [Abstract] | ||
Interest Income Period On Installment Agreements | 6 months | |
Payment period on product sales | 1 month | |
Interest Free Period on Receivables | 1 month | |
Minimum | Equipment Sales | International | ||
Revenue Recognition [Abstract] | ||
Payment period on product sales | 30 days | |
Minimum | Replacement parts | International | ||
Revenue Recognition [Abstract] | ||
Payment period on product sales | 30 days | |
Maximum | ||
Revenue Recognition [Abstract] | ||
Interest Income Period On Installment Agreements | 12 months | |
Payment period on product sales | 12 months | |
Interest Free Period on Receivables | 12 months | |
Maximum | United States and Canada | ||
Revenue Recognition [Abstract] | ||
Interest-free period and payment period on products | 24 months | |
Maximum | Equipment Sales | International | ||
Revenue Recognition [Abstract] | ||
Payment period on product sales | 180 days | |
Maximum | Replacement parts | International | ||
Revenue Recognition [Abstract] | ||
Payment period on product sales | 90 days | |
Maximum | Large Seasonal Products | ||
Revenue Recognition [Abstract] | ||
Interest Free Period on Receivables | 24 months | |
Maximum | Large Seasonal Products | International | ||
Revenue Recognition [Abstract] | ||
Payment period on product sales | 6 months |
Operations and Summary of Sig39
Operations and Summary of Significant Accounting Policies - Accounts and Notes Receivable (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
0 to 6 months | $ 7,819 | |||
0 to 6 months, percent | 94.10% | |||
7 to 12 months | $ 478.1 | |||
7 to 12 months, percent | 5.80% | |||
13 to 24 months | $ 9.4 | |||
13 to 24 months, percent | 0.10% | |||
Net sales | $ 8,306.5 | $ 7,410.5 | $ 7,467.3 | |
Net sales, percent | 100.00% | |||
North America | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
0 to 6 months | $ 1,399.6 | |||
7 to 12 months | 467.7 | |||
13 to 24 months | 9.4 | |||
Net sales | 1,876.7 | |||
South America | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
0 to 6 months | 1,063.5 | |||
7 to 12 months | 0 | |||
13 to 24 months | 0 | |||
Net sales | 1,063.5 | |||
Europe/ Middle East | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
0 to 6 months | 4,603.9 | |||
7 to 12 months | 10.4 | |||
13 to 24 months | 0 | |||
Net sales | 4,614.3 | |||
Asia/Pacific/Africa | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
0 to 6 months | 752 | |||
7 to 12 months | 0 | |||
13 to 24 months | 0 | |||
Net sales | 752 | |||
Accounts Receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Valuation allowances and reserves | 70.6 | 68.2 | ||
Sales incentive discounts | Accounts Receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Valuation allowances and reserves | 33.1 | 34.5 | ||
Doubtful accounts | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Valuation allowances and reserves | 37.5 | 33.7 | $ 29.3 | $ 32.1 |
Doubtful accounts | Accounts Receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Valuation allowances and reserves | $ 37.5 | $ 33.7 |
Operations and Summary of Sig40
Operations and Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||
Inventory Valuation Reserves | $ 165.7 | $ 137.2 |
Inventory, Net [Abstract] | ||
Finished goods | 684.1 | 589.3 |
Repair and replacement parts | 605.9 | 532.5 |
Work in process | 178.7 | 113.8 |
Raw materials | 404.2 | 279.2 |
Inventories, net | $ 1,872.9 | $ 1,514.8 |
Operations and Summary of Sig41
Operations and Summary of Significant Accounting Policies - Property Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | ||
Gross property, plant and equipment | $ 3,461.8 | $ 3,036.4 |
Accumulated depreciation and amortization | (1,976.5) | (1,675.1) |
Property, plant and equipment, net | 1,485.3 | 1,361.3 |
Land | ||
Property, Plant and Equipment [Abstract] | ||
Gross property, plant and equipment | 130.6 | 112.1 |
Buildings and improvements | ||
Property, Plant and Equipment [Abstract] | ||
Gross property, plant and equipment | 792 | 681.8 |
Machinery and equipment | ||
Property, Plant and Equipment [Abstract] | ||
Gross property, plant and equipment | 2,391.6 | 2,116.1 |
Furniture and fixtures | ||
Property, Plant and Equipment [Abstract] | ||
Gross property, plant and equipment | $ 147.6 | $ 126.4 |
Minimum | Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 10 years | |
Minimum | Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 3 years | |
Minimum | Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 3 years | |
Maximum | Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 40 years | |
Maximum | Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 15 years | |
Maximum | Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 10 years |
Operations and Summary of Sig42
Operations and Summary of Significant Accounting Policies - Goodwill and Other Intangible Assets (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)country | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Goodwill [Line Items] | |||
Accumulated goodwill impairment loss | $ 180.5 | ||
Goodwill [Roll Forward] | |||
Goodwill beginning of period | 1,376.4 | $ 1,114.5 | $ 1,192.8 |
Goodwill acquired | 84.6 | 269.2 | 22.2 |
Goodwill, foreign currency translation | 80.4 | (7.3) | (100.5) |
Goodwill end of period | 1,541.4 | 1,376.4 | 1,114.5 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2,018 | 62.8 | ||
2,019 | 62.8 | ||
2,020 | 62.4 | ||
2,021 | 59.8 | ||
2,022 | $ 59.1 | ||
Number of countries where products sold (over) | country | 150 | ||
Finite-lived Intangible Assets [Roll Forward] | |||
Finite-lived intangible assets, beginning of period | $ 867.8 | 716.1 | |
Finite-lived intangible assets, accumulated amortization, beginning of period | 344.9 | 293.7 | |
Finite-lived intangible assets, Intangible assets acquired | 72 | 162.5 | |
Finite lived intangible assets, foreign currency translation | 38.1 | (10.8) | |
Finite-lived intangible assets, end of period | 977.9 | 867.8 | 716.1 |
Finite lived intangible assets, accumulated amortization, foreign currency translation | 15.6 | 0 | |
Finite-lived intangible assets, accumulated amortization, end of period | 417.5 | 344.9 | 293.7 |
Amortization of intangibles | 57 | 51.2 | 42.7 |
Trademarks and Trade Names | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Finite-lived intangible assets, beginning of period | 179.2 | 122.2 | |
Finite-lived intangible assets, accumulated amortization, beginning of period | 49.7 | 41.9 | |
Finite-lived intangible assets, Intangible assets acquired | 19.5 | 61.2 | |
Finite lived intangible assets, foreign currency translation | 9.7 | (4.2) | |
Finite-lived intangible assets, end of period | 208.4 | 179.2 | 122.2 |
Finite lived intangible assets, accumulated amortization, foreign currency translation | 1.4 | (0.2) | |
Finite-lived intangible assets, accumulated amortization, end of period | $ 61.4 | 49.7 | 41.9 |
Weighted average useful life | 19 years | ||
Amortization of intangibles | $ 10.3 | 8 | |
Customer relationships | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Finite-lived intangible assets, beginning of period | 558 | 492.3 | |
Finite-lived intangible assets, accumulated amortization, beginning of period | 233 | 193.8 | |
Finite-lived intangible assets, Intangible assets acquired | 24.4 | 69 | |
Finite lived intangible assets, foreign currency translation | 18 | (3.3) | |
Finite-lived intangible assets, end of period | 600.4 | 558 | 492.3 |
Finite lived intangible assets, accumulated amortization, foreign currency translation | 8.2 | 1.8 | |
Finite-lived intangible assets, accumulated amortization, end of period | $ 279.7 | 233 | 193.8 |
Weighted average useful life | 13 years | ||
Amortization of intangibles | $ 38.5 | 37.4 | |
Patents and Technology | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Finite-lived intangible assets, beginning of period | 122.1 | 92.5 | |
Finite-lived intangible assets, accumulated amortization, beginning of period | 59.5 | 55.1 | |
Finite-lived intangible assets, Intangible assets acquired | 28.1 | 32.3 | |
Finite lived intangible assets, foreign currency translation | 9.8 | (2.7) | |
Finite-lived intangible assets, end of period | 160 | 122.1 | 92.5 |
Finite lived intangible assets, accumulated amortization, foreign currency translation | 5.9 | (1.2) | |
Finite-lived intangible assets, accumulated amortization, end of period | $ 73.4 | 59.5 | 55.1 |
Weighted average useful life | 12 years | ||
Amortization of intangibles | $ 8 | 5.6 | |
Land Use Rights | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Finite-lived intangible assets, beginning of period | 8.5 | 9.1 | |
Finite-lived intangible assets, accumulated amortization, beginning of period | 2.7 | 2.9 | |
Finite-lived intangible assets, Intangible assets acquired | 0 | 0 | |
Finite lived intangible assets, foreign currency translation | 0.6 | (0.6) | |
Finite-lived intangible assets, end of period | 9.1 | 8.5 | 9.1 |
Finite lived intangible assets, accumulated amortization, foreign currency translation | 0.1 | (0.4) | |
Finite-lived intangible assets, accumulated amortization, end of period | $ 3 | 2.7 | 2.9 |
Weighted average useful life | 45 years | ||
Amortization of intangibles | $ 0.2 | 0.2 | |
Trademarks and Trade Names | |||
Indefinite-lived Intangible Assets [Roll Forward] | |||
Indefinite-lived intangible assets, beginning of period | 84.4 | 85.3 | |
Indefinite-lived intangible assets, foreign currency translation | 4.2 | (0.9) | |
Indefinite-lived intangible assets, end of period | $ 88.6 | 84.4 | 85.3 |
Massey Ferguson | |||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Number of countries where products sold (over) | country | 120 | ||
Valtra Brand | |||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Number of countries where products sold (over) | country | 80 | ||
Minimum | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets useful life | 3 years | ||
Maximum | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets useful life | 50 years | ||
North America | |||
Goodwill [Roll Forward] | |||
Goodwill beginning of period | $ 543.9 | 518.7 | 513.6 |
Goodwill acquired | 67.2 | 25.2 | 5.1 |
Goodwill, foreign currency translation | 0 | 0 | 0 |
Goodwill end of period | 611.1 | 543.9 | 518.7 |
South America | |||
Goodwill [Roll Forward] | |||
Goodwill beginning of period | 138.8 | 114.4 | 169.7 |
Goodwill acquired | 0 | 0 | 0 |
Goodwill, foreign currency translation | (2.4) | 24.4 | (55.3) |
Goodwill end of period | 136.4 | 138.8 | 114.4 |
Europe/ Middle East | |||
Goodwill [Roll Forward] | |||
Goodwill beginning of period | 581.9 | 411.2 | 445.4 |
Goodwill acquired | 17.4 | 196.4 | 4.4 |
Goodwill, foreign currency translation | 71.7 | (25.7) | (38.6) |
Goodwill end of period | 671 | 581.9 | 411.2 |
Asia/Pacific/Africa | |||
Goodwill [Roll Forward] | |||
Goodwill beginning of period | 111.8 | 70.2 | 64.1 |
Goodwill acquired | 0 | 47.6 | 12.7 |
Goodwill, foreign currency translation | 11.1 | (6) | (6.6) |
Goodwill end of period | $ 122.9 | $ 111.8 | $ 70.2 |
Operations and Summary of Sig43
Operations and Summary of Significant Accounting Policies - Accrued Expense and Reserves (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||
Reserve for volume discounts and sales incentives | $ 489.1 | $ 407.3 | |
Warranty reserves | 273.6 | 223.1 | |
Accrued employee compensation and benefits | 283.3 | 234 | |
Accrued taxes | 135.4 | 113.5 | |
Other | 226.5 | 182.9 | |
Accrued expenses | 1,407.9 | 1,160.8 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Warranty reserves, beginning of period | 255.6 | 230.3 | $ 284.6 |
Acquisitions | 5.1 | 3.7 | 0.2 |
Accruals for warranties issued during the year | 215.9 | 214.6 | 152.6 |
Settlements made (in cash or in kind) during the year | (183.1) | (188.7) | (186.2) |
Foreign currency translation | 22.5 | (4.3) | (20.9) |
Warranty reserves, end of period | $ 316 | 255.6 | $ 230.3 |
Minimum product warranty period | 1 year | ||
Maximum product warranty period | 4 years | ||
Warranty reserves included in other noncurrent liabilities | $ 42.4 | $ 32.5 |
Operations and Summary of Sig44
Operations and Summary of Significant Accounting Policies - Stock Compensation Allocation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock compensation expense | $ 38.4 | $ 18.4 | $ 12.5 |
Cost of goods sold | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock compensation expense | 2.8 | 1.5 | 0.9 |
Selling, general and administrative expenses | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock compensation expense | $ 35.6 | $ 16.9 | $ 11.6 |
Operations and Summary of Sig45
Operations and Summary of Significant Accounting Policies - Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Line Items] | |||
Advertising expense | $ 42.6 | $ 46.8 | $ 50 |
Interest Income (Expense), Net [Abstract] | |||
Interest expense | 54.5 | 65.4 | 64.1 |
Interest income | (9.4) | (13.3) | (18.7) |
Interest expense, net | 45.1 | 52.1 | 45.4 |
Selling, general and administrative expenses | |||
Accounting Policies [Line Items] | |||
Shipping and handling fees | $ 29.5 | $ 24.3 | $ 24.6 |
Operations and Summary of Sig46
Operations and Summary of Significant Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share, Basic [Abstract] | |||
Net income attributable to AGCO Corporation and subsidiaries | $ 186.4 | $ 160.1 | $ 266.4 |
Weighted average number of common shares outstanding (in shares) | 79.5 | 81.4 | 87 |
Basic net income per share attributable to AGCO Corporation and subsidiaries (in dollars per share) | $ 2.34 | $ 1.97 | $ 3.06 |
Diluted net income per share: | |||
Dilutive SSARs, performance share awards and restricted stock units (in shares) | 0.7 | 0.3 | 0.1 |
Weighted average number of common shares and common share equivalents outstanding for purposes of computing diluted net income per share (in shares) | 80.2 | 81.7 | 87.1 |
Diluted net income per share attributable to AGCO Corporation and subsidiaries (in dollars per share) | $ 2.32 | $ 1.96 | $ 3.06 |
Stock Appreciation Rights (SARs) | |||
Diluted net income per share: | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0.3 | 1.1 | 1.2 |
Operations and Summary of Sig47
Operations and Summary of Significant Accounting Policies - Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss), net of reclassification adjustments | $ 81.2 | $ 20.2 | $ (555.8) |
AOCI Attributable To Parent | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss), before tax | 84.9 | 5.8 | (554.3) |
Other comprehensive income (loss), income taxes | (4.9) | 12.8 | 0.6 |
Other comprehensive income (loss), net of reclassification adjustments | 80 | 18.6 | (553.7) |
Defined Benefit Pension Plans | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss), before tax | 24.2 | (68.2) | 4.9 |
Other comprehensive income (loss), income taxes | (4.8) | 12.7 | (0.6) |
Other comprehensive income (loss), net of reclassification adjustments | 19.4 | (55.5) | 4.3 |
Net loss on derivatives | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss), before tax | 4.1 | (6.8) | (3.1) |
Other comprehensive income (loss), income taxes | (0.1) | 0.1 | 1.2 |
Other comprehensive income (loss), net of reclassification adjustments | 4 | (6.7) | (1.9) |
Foreign currency translation adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss), before tax | 56.6 | 80.8 | (556.1) |
Other comprehensive income (loss), income taxes | 0 | 0 | 0 |
Other comprehensive income (loss), net of reclassification adjustments | 56.6 | 80.8 | (556.1) |
AOCI Attributable to Noncontrolling Interest | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss), net of reclassification adjustments | 1.2 | 1.6 | (2.1) |
Defined benefit pension plans | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss), net of reclassification adjustments | 0 | 0 | 0 |
Net loss on derivatives | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss), net of reclassification adjustments | 0 | 0 | 0 |
Foreign currency translation adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss), net of reclassification adjustments | $ 1.2 | $ 1.6 | $ (2.1) |
Operations and Summary of Sig48
Operations and Summary of Significant Accounting Policies Operations and Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) - Accounting Standards Update 2016-09 - USD ($) $ in Millions | Dec. 31, 2017 | Jan. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Adjustment related to the adoption of ASU 2016-09 | $ (1.7) | |
Retained Earnings | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Adjustment related to the adoption of ASU 2016-09 | $ (1.7) |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) € in Millions, DKK in Millions, $ in Millions | Oct. 02, 2017USD ($) | Oct. 02, 2017EUR (€) | Sep. 01, 2017USD ($) | Sep. 12, 2016USD ($) | Sep. 12, 2016DKK | Feb. 02, 2016USD ($) | Feb. 02, 2016EUR (€) | Apr. 17, 2015USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Finite-Lived Intangible Assets Acquired [Line Items] | |||||||||||
Intangible assets acquired | $ 72 | $ 162.5 | |||||||||
Goodwill acquired | 84.6 | 269.2 | $ 22.2 | ||||||||
Purchase of businesses, net of cash acquired | $ 293.1 | $ 383.8 | $ 25.4 | ||||||||
Forage Division, Lely Group [Member] | |||||||||||
Finite-Lived Intangible Assets Acquired [Line Items] | |||||||||||
Payments to acquire businesses | $ 95 | € 80.5 | |||||||||
Cash acquired, net | 7.1 | € 6 | |||||||||
Intangible assets acquired | $ 7.6 | ||||||||||
Precision Planting LLC [Member] | |||||||||||
Finite-Lived Intangible Assets Acquired [Line Items] | |||||||||||
Payments to acquire businesses | $ 198.1 | ||||||||||
Cash acquired, net | 1.6 | ||||||||||
Intangible assets acquired | $ 64.4 | ||||||||||
Cimbria Holdings Limited | |||||||||||
Finite-Lived Intangible Assets Acquired [Line Items] | |||||||||||
Payments to acquire businesses | $ 337.5 | DKK 2,234.9 | |||||||||
Cash acquired, net | 12.6 | DKK 83.4 | |||||||||
Intangible assets acquired | $ 128.9 | ||||||||||
Tecno Poultry Equipment | |||||||||||
Finite-Lived Intangible Assets Acquired [Line Items] | |||||||||||
Payments to acquire businesses | $ 63.8 | € 58.7 | |||||||||
Cash acquired, net | 19.1 | € 17.6 | |||||||||
Intangible assets acquired | 27.5 | ||||||||||
Goodwill acquired | $ 20.4 | ||||||||||
Farmer Automatic | |||||||||||
Finite-Lived Intangible Assets Acquired [Line Items] | |||||||||||
Cash acquired, net | $ 0.1 | ||||||||||
Intangible assets acquired | 9.6 | ||||||||||
Goodwill acquired | 10 | ||||||||||
Purchase of businesses, net of cash acquired | $ 17.9 |
Acquisitions (Schedule Of Acqui
Acquisitions (Schedule Of Acquired Other Identifiable Intangible Assets) (Details) - USD ($) $ in Millions | Oct. 02, 2017 | Sep. 01, 2017 | Sep. 12, 2016 | Feb. 02, 2016 | Apr. 17, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets Acquired [Line Items] | |||||||||
Goodwill | $ 1,541.4 | $ 1,376.4 | $ 1,114.5 | $ 1,192.8 | |||||
Intangible assets acquired | 72 | 162.5 | |||||||
Customer relationships | |||||||||
Finite-Lived Intangible Assets Acquired [Line Items] | |||||||||
Intangible assets acquired | $ 24.4 | $ 69 | |||||||
Weighted average useful life | 13 years | ||||||||
Forage Division, Lely Group [Member] | |||||||||
Finite-Lived Intangible Assets Acquired [Line Items] | |||||||||
Current assets | $ 84.6 | ||||||||
Property, plant and equipment | 24.3 | ||||||||
Intangible assets | 7.6 | ||||||||
Goodwill | 17.4 | ||||||||
Total assets acquired | 133.9 | ||||||||
Current liabilities | 23.6 | ||||||||
Long-term liabilities | 8.2 | ||||||||
Total liabilities assumed | 31.8 | ||||||||
Net assets acquired | 102.1 | ||||||||
Intangible assets acquired | 7.6 | ||||||||
Forage Division, Lely Group [Member] | Customer relationships | |||||||||
Finite-Lived Intangible Assets Acquired [Line Items] | |||||||||
Intangible assets acquired | $ 3 | ||||||||
Weighted average useful life | 5 years | ||||||||
Forage Division, Lely Group [Member] | Technology | |||||||||
Finite-Lived Intangible Assets Acquired [Line Items] | |||||||||
Intangible assets acquired | $ 3 | ||||||||
Weighted average useful life | 12 years | ||||||||
Forage Division, Lely Group [Member] | Trademarks | |||||||||
Finite-Lived Intangible Assets Acquired [Line Items] | |||||||||
Intangible assets acquired | $ 1.6 | ||||||||
Weighted average useful life | 10 years | ||||||||
Precision Planting LLC [Member] | |||||||||
Finite-Lived Intangible Assets Acquired [Line Items] | |||||||||
Current assets | $ 59.5 | ||||||||
Property, plant and equipment | 20.8 | ||||||||
Intangible assets | 64.4 | ||||||||
Goodwill | 67.2 | ||||||||
Total assets acquired | 211.9 | ||||||||
Current liabilities | 12.2 | ||||||||
Total liabilities assumed | 12.2 | ||||||||
Net assets acquired | 199.7 | ||||||||
Intangible assets acquired | 64.4 | ||||||||
Precision Planting LLC [Member] | Customer relationships | |||||||||
Finite-Lived Intangible Assets Acquired [Line Items] | |||||||||
Intangible assets acquired | $ 21.4 | ||||||||
Weighted average useful life | 14 years | ||||||||
Precision Planting LLC [Member] | Technology | |||||||||
Finite-Lived Intangible Assets Acquired [Line Items] | |||||||||
Intangible assets acquired | $ 25.1 | ||||||||
Weighted average useful life | 10 years | ||||||||
Precision Planting LLC [Member] | Trademarks | |||||||||
Finite-Lived Intangible Assets Acquired [Line Items] | |||||||||
Intangible assets acquired | $ 17.9 | ||||||||
Weighted average useful life | 20 years | ||||||||
Cimbria Holdings Limited | |||||||||
Finite-Lived Intangible Assets Acquired [Line Items] | |||||||||
Current assets | $ 74.2 | ||||||||
Property, plant and equipment | 21.9 | ||||||||
Intangible assets | 128.9 | ||||||||
Goodwill | 237.9 | ||||||||
Total assets acquired | 462.9 | ||||||||
Current liabilities | 63.8 | ||||||||
Deferred tax liabilities | 38.5 | ||||||||
Long-term debt and other noncurrent liabilities | 10.5 | ||||||||
Total liabilities assumed | 112.8 | ||||||||
Net assets acquired | 350.1 | ||||||||
Intangible assets acquired | 128.9 | ||||||||
Cimbria Holdings Limited | Customer relationships | |||||||||
Finite-Lived Intangible Assets Acquired [Line Items] | |||||||||
Intangible assets acquired | $ 50.4 | ||||||||
Weighted average useful life | 9 years | ||||||||
Cimbria Holdings Limited | Technology | |||||||||
Finite-Lived Intangible Assets Acquired [Line Items] | |||||||||
Intangible assets acquired | $ 22.5 | ||||||||
Weighted average useful life | 10 years | ||||||||
Cimbria Holdings Limited | Trademarks | |||||||||
Finite-Lived Intangible Assets Acquired [Line Items] | |||||||||
Intangible assets acquired | $ 56 | ||||||||
Weighted average useful life | 20 years | ||||||||
Tecno Poultry Equipment | |||||||||
Finite-Lived Intangible Assets Acquired [Line Items] | |||||||||
Intangible assets acquired | $ 27.5 | ||||||||
Tecno Poultry Equipment | Customer relationships | |||||||||
Finite-Lived Intangible Assets Acquired [Line Items] | |||||||||
Intangible assets acquired | $ 15.7 | ||||||||
Weighted average useful life | 10 years | ||||||||
Tecno Poultry Equipment | Technology | |||||||||
Finite-Lived Intangible Assets Acquired [Line Items] | |||||||||
Intangible assets acquired | $ 7.9 | ||||||||
Weighted average useful life | 10 years | ||||||||
Tecno Poultry Equipment | Trademarks | |||||||||
Finite-Lived Intangible Assets Acquired [Line Items] | |||||||||
Intangible assets acquired | $ 3.9 | ||||||||
Weighted average useful life | 10 years | ||||||||
Farmer Automatic | |||||||||
Finite-Lived Intangible Assets Acquired [Line Items] | |||||||||
Intangible assets acquired | $ 9.6 | ||||||||
Farmer Automatic | Customer relationships | |||||||||
Finite-Lived Intangible Assets Acquired [Line Items] | |||||||||
Intangible assets acquired | $ 4.1 | ||||||||
Weighted average useful life | 10 years | ||||||||
Farmer Automatic | Technology | |||||||||
Finite-Lived Intangible Assets Acquired [Line Items] | |||||||||
Intangible assets acquired | $ 3.6 | ||||||||
Weighted average useful life | 10 years | ||||||||
Farmer Automatic | Trademarks | |||||||||
Finite-Lived Intangible Assets Acquired [Line Items] | |||||||||
Intangible assets acquired | $ 1.9 | ||||||||
Weighted average useful life | 10 years |
Restructuring Expenses (Details
Restructuring Expenses (Details) $ in Millions | 12 Months Ended | 36 Months Ended | ||
Dec. 31, 2017USD ($)employees | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2016USD ($)employees | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Number of Positions Eliminated | employees | 620 | 2,750 | ||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning of period | $ 15.3 | $ 16.9 | $ 25.4 | |
Provision | 12.6 | 12 | 23 | |
Restructuring Non-cash expense | (0.2) | |||
Cash expense | 12.4 | |||
Provision reversal | (1.4) | (0.1) | (0.7) | |
Cash activity | (16.8) | (13.3) | (29.5) | |
Foreign currency translation | 1.4 | (0.2) | (1.3) | |
Restructuring reserve, end of period | 10.9 | 15.3 | 16.9 | $ 15.3 |
Write-down of Property, Plant and Equipment | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning of period | 0 | 0 | 0 | |
Provision | 0.2 | 0 | 0 | |
Restructuring Non-cash expense | (0.2) | |||
Cash expense | 0 | |||
Provision reversal | 0 | 0 | 0 | |
Cash activity | 0 | 0 | 0 | |
Foreign currency translation | 0 | 0 | 0 | |
Restructuring reserve, end of period | 0 | 0 | 0 | 0 |
Employee Severance | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning of period | 14.5 | 16.9 | 25.3 | |
Provision | 12.4 | 11 | 23 | |
Restructuring Non-cash expense | 0 | |||
Cash expense | 12.4 | |||
Provision reversal | (1.4) | (0.1) | (0.7) | |
Cash activity | (16) | (13.1) | (29.4) | |
Foreign currency translation | 1.4 | (0.2) | (1.3) | |
Restructuring reserve, end of period | 10.9 | 14.5 | 16.9 | 14.5 |
Facility Closure Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning of period | 0.8 | 0 | 0.1 | |
Provision | 0 | 1 | 0 | |
Restructuring Non-cash expense | 0 | |||
Cash expense | 0 | |||
Provision reversal | 0 | 0 | 0 | |
Cash activity | (0.8) | (0.2) | (0.1) | |
Foreign currency translation | 0 | 0 | 0 | |
Restructuring reserve, end of period | $ 0 | $ 0.8 | $ 0 | $ 0.8 |
Accounts Receivable Sales Agr52
Accounts Receivable Sales Agreements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Resale Agreement Counterparty [Line Items] | |||
Outstanding funding received from receivable securitization | $ 41.6 | $ 41.5 | |
United States, Canada, Europe, and Brazil | |||
Resale Agreement Counterparty [Line Items] | |||
Cash received from receivables sold | 1,300 | 1,100 | |
Other Expense | |||
Resale Agreement Counterparty [Line Items] | |||
Loss on sales of receivables | $ 39.2 | $ 19.5 | $ 18.8 |
Investments in Affiliates (Deta
Investments in Affiliates (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Equity Method Investments [Line Items] | |||
Investment in affiliates | $ 409 | $ 414.9 | |
Equity in net earnings of affiliates | 39.1 | 47.5 | $ 57.1 |
Equity Method Investment, Summarized Financial Information [Abstract] | |||
Total assets | 8,440 | 7,448 | |
Total liabilities | 7,677.3 | 6,670.8 | |
Partners’ equity | 762.7 | 777.2 | |
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | |||
Revenues | 305.7 | 297.4 | 313 |
Costs | 183 | 159 | 158.1 |
Income before income taxes | 122.7 | 138.4 | 154.9 |
Receivables from affiliates | 23.4 | 54.4 | |
Undistributed earnings | 321.9 | 312.6 | |
Finance joint ventures | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in affiliates | 373.7 | 380.8 | |
Equity in net earnings of affiliates | 39.9 | 45.5 | 53.8 |
Manufacturing joint ventures | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in affiliates | 20.1 | 17.8 | |
Other affiliates | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in affiliates | 15.2 | 16.3 | |
Manufacturing and other joint ventures | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity in net earnings of affiliates | $ (0.8) | $ 2 | $ 3.3 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Line Items] | ||||
Provision in accordance with Staff Accounting Bulletin No. 118 | $ 42 | |||
Provisional income tax charge | 14.3 | |||
Tax associated with the mandatory deemed repatriation | 3,400 | |||
Pre-tax losses associated with the mandatory deemed repatriation of unremitted foreign earnings | $ 49.6 | |||
Provisional income tax charge for consequences associated with expected future repatriation | 10.4 | |||
Deferred tax liability | 18.3 | $ 18.3 | $ 12.7 | |
Federal statutory income tax rate | 35.00% | 35.00% | 35.00% | |
Valuation allowance | 81.9 | $ 81.9 | $ 116 | |
Benefit from the use of certain tax credits | 37 | |||
Net operating loss carryforwards | 272.3 | 272.3 | ||
Net operating loss carryforwards not subject to expiration | 156.5 | 156.5 | ||
Income taxes paid | 111.2 | 106.2 | $ 97.6 | |
Unrecognized income tax benefits that would affect effective tax rate | 163.4 | 163.4 | 139.9 | |
Accrued or deferred taxes relating to uncertain income tax positions | 61.8 | 61.8 | 47 | |
Interest and penalties related to unrecognized tax benefits | 4.6 | 3.4 | ||
Accrued interest and penalties relating to unrecognized tax benefits | 23 | 23 | $ 16.4 | |
Foreign | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | 272.3 | 272.3 | ||
2,018 | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards, by expiration date | 26.5 | 26.5 | ||
2,019 | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards, by expiration date | 41.1 | 41.1 | ||
2,020 | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards, by expiration date | $ 48.2 | $ 48.2 |
Income Taxes (Schedule of Incom
Income Taxes (Schedule of Income before Income Tax, Domestic and Foreign) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Sources of income (loss) before income taxes and equity in net earnings of affiliates | |||
United States | $ (141.6) | $ (150) | $ (49.1) |
Foreign | 425.4 | 354.9 | 328.5 |
Income before income taxes and equity in net earnings of affiliates | $ 283.8 | $ 204.9 | $ 279.4 |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | |||
Federal | $ 20.3 | $ (24.3) | $ (1.3) |
State | 0.6 | 0.2 | 2.8 |
Foreign | 126.8 | 114.2 | 97.8 |
Current income tax expense (benefit) | 147.7 | 90.1 | 99.3 |
Deferred: | |||
Federal | 0.9 | 21.9 | (19) |
State | 0 | 0 | 0 |
Foreign | (15) | (19.8) | (7.8) |
Deferred income tax expense (benefit) | (14.1) | 2.1 | (26.8) |
Income tax provision | $ 133.6 | $ 92.2 | $ 72.5 |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||
Provision for income taxes at United States federal statutory rate of 35% | $ 99.3 | $ 71.7 | $ 97.8 |
State and local income taxes, net of federal income tax effects | (5.7) | (6) | (2) |
Taxes on foreign income which differ from the United States statutory rate | (57.7) | (44.5) | (34.9) |
Tax effect of permanent differences | 60.6 | 14.4 | 7.1 |
Change in valuation allowance | (1.4) | 37.9 | (4.5) |
Change in tax contingency reserves | 3.8 | 23.4 | 15.4 |
Research and development tax credits | (5) | (3.8) | (4.9) |
Impacts related to the 2017 Tax Act | 42 | 0 | 0 |
Other | (2.3) | (0.9) | (1.5) |
Income tax provision | $ 133.6 | $ 92.2 | $ 72.5 |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred Tax Assets: | ||
Net operating loss carryforwards | $ 83.4 | $ 85.5 |
Sales incentive discounts | 60.2 | 73.7 |
Inventory valuation reserves | 34.4 | 39.9 |
Pensions and postretirement health care benefits | 52.2 | 70.4 |
Warranty and other reserves | 92.2 | 118.1 |
Research and development tax credits | 2.9 | 11.2 |
Foreign tax credits | 10.4 | 24 |
Other | 19.2 | 24.6 |
Total gross deferred tax assets | 354.9 | 447.4 |
Valuation allowance | (81.9) | (116) |
Total net deferred tax assets | 273 | 331.4 |
Deferred Tax Liabilities: | ||
Tax over book depreciation and amortization | 229.1 | 284.9 |
Investment in affiliates | 53.9 | 45.6 |
Other | 8.3 | 13.6 |
Total deferred tax liabilities | 291.3 | 344.1 |
Deferred tax liability | (18.3) | (12.7) |
Amounts recognized in Consolidated Balance Sheets: | ||
Deferred tax assets - noncurrent | 112.2 | 99.7 |
Deferred tax liabilities - noncurrent | $ (130.5) | $ (112.4) |
Income Taxes (Summary of Income
Income Taxes (Summary of Income Tax Contingencies) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Gross unrecognized tax benefits: | ||
Gross unrecognized income tax benefits, beginning of period | $ 139.9 | $ 133 |
Additions for tax positions of the current year | 16.4 | 14.4 |
Additions for tax positions of prior years | 4.8 | 15.2 |
Reductions for tax positions of prior years for: | ||
Changes in judgments | 1.4 | (1.2) |
Settlements during the year | (0.4) | (13.8) |
Lapses of applicable statute of limitations | (14.4) | (5) |
Foreign currency translation | 15.7 | (2.7) |
Gross unrecognized income tax benefits, end of period | $ 163.4 | $ 139.9 |
Indebtedness (Narrative) (Detai
Indebtedness (Narrative) (Details) | Oct. 19, 2016USD ($) | Oct. 31, 2016EUR (€)loan_agreement | Apr. 30, 2016USD ($) | Apr. 30, 2016EUR (€)loan_agreement | Jun. 30, 2016USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017EUR (€) |
Debt Instrument [Line Items] | |||||||||
Interest Paid | $ 51,400,000 | $ 58,800,000 | $ 63,000,000 | ||||||
Debt, face amount | 305,300,000 | ||||||||
Outstanding letters of credit | 15,200,000 | 17,100,000 | |||||||
Net Investment Hedging | Designated as Hedging Instrument | |||||||||
Debt Instrument [Line Items] | |||||||||
Notional amount of foreign currency derivatives | 374,200,000 | 329,200,000 | € 312,000,000 | ||||||
Cash Flow Hedging | Designated as Hedging Instrument | |||||||||
Debt Instrument [Line Items] | |||||||||
Notional amount of foreign currency derivatives | 1,798,200,000 | ||||||||
Cash Flow Hedging | Interest Rate Swap | Designated as Hedging Instrument | |||||||||
Debt Instrument [Line Items] | |||||||||
Notional amount of foreign currency derivatives | $ 374,200,000 | € 312,000,000 | |||||||
Derivative, fixed interest rate | 0.3315% | 0.3315% | |||||||
Fair Value Hedging | Interest Rate Swap | Designated as Hedging Instrument | |||||||||
Debt Instrument [Line Items] | |||||||||
Notional amount of foreign currency derivatives | $ 300,000,000 | ||||||||
Deferred gain on hedge termination | $ 7,300,000 | ||||||||
unamortized portion of deferred hedge gain | 5,300,000 | 6,600,000 | |||||||
Amortization of deferred hedge gains | 1,300,000 | 700,000 | |||||||
Senior term loans due between 2019 and 2026 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, face amount | € 375,000,000 | 449,700,000 | |||||||
Senior Notes | 449,700,000 | 395,600,000 | |||||||
Number Of Loan Agreements Entered | loan_agreement | 7 | ||||||||
Proceeds from issuance of debt | $ 409,500,000 | € 373,200,000 | |||||||
1.056% Senior term loan due 2020 | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior Notes | $ 239,800,000 | $ 211,000,000 | € 200,000,000 | ||||||
Debt Interest Rate | 1.056% | 1.056% | 1.056% | ||||||
Line of Credit | Interest Accrual, Option Two | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate | 0.50% | ||||||||
Line of Credit | Interest Accrual, Option Three | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate | 1.00% | ||||||||
Line of Credit | Minimum | Interest Accrual, Option One | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate | 1.00% | ||||||||
Line of Credit | Minimum | Interest Accrual, Option Three | Variable Basis, Additional Margin | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate | 0.00% | ||||||||
Line of Credit | Maximum | Interest Accrual, Option One | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate | 1.75% | ||||||||
Line of Credit | Maximum | Interest Accrual, Option Three | Variable Basis, Additional Margin | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate | 0.25% | ||||||||
Line of Credit | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 800,000,000 | ||||||||
Long-term line of credit | 97,000,000 | ||||||||
Remaining borrowing capacity | 703,000,000 | $ 800,000,000 | |||||||
Credit facility, expires 2020 | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior Notes | 471,200,000 | $ 329,200,000 | |||||||
Line of credit | $ 374,200,000 | € 312,000,000 | |||||||
4½% Senior term loan due 2016 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Interest Rate | 4.50% | 4.50% | 4.50% | ||||||
Proceeds from issuance of debt | $ 112,200,000 | € 99,600,000 | |||||||
5 7/8% Senior notes due 2021 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, face amount | $ 305,300,000 | ||||||||
Senior Notes | $ 305,300,000 | $ 306,600,000 | |||||||
Debt Interest Rate | 5.875% | 5.875% | 5.875% | ||||||
Redemption percentage | 100.00% | ||||||||
5 7/8% Senior notes due 2021 | Interest Accrual, Option Two | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate | 0.50% | ||||||||
Senior Unsecured Term Loan Due April 26, 2021, First Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, face amount | 100,000,000 | $ 119,900,000 | |||||||
Senior Unsecured Term Loan Due April 26, 2021, Second Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, face amount | 200,000,000 | $ 239,800,000 | € 200,000,000 | ||||||
Senior Unsecured Term Loan Due April 26, 2021, Total | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, face amount | € | € 300,000,000 | ||||||||
Senior Unsecured Term Loan Due April 26, 2021, Total | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate | 1.00% | ||||||||
Senior Unsecured Term Loan Due April 26, 2021, Total | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate | 1.75% | ||||||||
Rabobank | Senior Unsecured Term Loan Due April 26, 2021, Total | |||||||||
Debt Instrument [Line Items] | |||||||||
Number Of Loan Agreements Entered | loan_agreement | 2 |
Indebtedness (Components Of Ind
Indebtedness (Components Of Indebtedness) (Details) $ in Millions | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2016USD ($) |
Debt Instrument [Line Items] | |||
Other long-term debt | $ 131.6 | $ 141.6 | |
Debt issuance costs | (4) | (5.1) | |
Total indebtedness | 1,713.5 | 1,695.4 | |
Less: Current portion of long-term debt | (95.4) | (85.4) | |
Total indebtedness, less current portion | 1,618.1 | 1,610 | |
1.056% Senior term loan due 2020 | |||
Debt Instrument [Line Items] | |||
Senior Notes | 239.8 | € 200,000,000 | 211 |
Credit facility, expires 2020 | |||
Debt Instrument [Line Items] | |||
Senior Notes | 471.2 | 329.2 | |
Senior term loans due 2021 | |||
Debt Instrument [Line Items] | |||
Senior Notes | 119.9 | 316.5 | |
5 7/8% Senior notes due 2021 | |||
Debt Instrument [Line Items] | |||
Senior Notes | 305.3 | 306.6 | |
Senior term loans due between 2019 and 2026 | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 449.7 | $ 395.6 |
Indebtedness (Maturities of Lon
Indebtedness (Maturities of Long-term Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Aggregate scheduled maturities of long-term debt, excluding current maturities | ||
2,019 | $ 81 | |
2,020 | 721.9 | |
2,021 | 655.4 | |
2,022 | 2.5 | |
Thereafter | 157.3 | |
Total indebtedness, less current portion | $ 1,618.1 | $ 1,610 |
Indebtedness (Debt Terms) (Deta
Indebtedness (Debt Terms) (Details) $ in Millions | Dec. 31, 2017USD ($) | Oct. 31, 2016EUR (€) |
Debt Instrument [Line Items] | ||
Debt, face amount | $ | $ 305.3 | |
Senior term loans due between 2019 and 2026 | ||
Debt Instrument [Line Items] | ||
Debt, face amount | $ 449.7 | € 375,000,000 |
Senior term loans due between 2019 and 2026 | Term Loan, Floating Rate Due October 19, 2019 0.75% | ||
Debt Instrument [Line Items] | ||
Debt, face amount | € 1,000,000 | |
Debt Interest Rate | 0.75% | |
Senior term loans due between 2019 and 2026 | Term Loan, Fixed Rate Due October 19, 2019 0.75% | ||
Debt Instrument [Line Items] | ||
Debt, face amount | € 55,000,000 | |
Debt Interest Rate | 0.75% | |
Senior term loans due between 2019 and 2026 | Term Loan, Floating Rate Due October 19, 2021 1.00% | ||
Debt Instrument [Line Items] | ||
Debt, face amount | € 25,500,000 | |
Debt Interest Rate | 1.00% | |
Senior term loans due between 2019 and 2026 | Term Loan, Fixed Rate Due October 19, 2021 1.00% | ||
Debt Instrument [Line Items] | ||
Debt, face amount | € 166,500,000 | |
Debt Interest Rate | 1.00% | |
Senior term loans due between 2019 and 2026 | Term Loan, Floating Rate Due October 19, 2023 1.25% | ||
Debt Instrument [Line Items] | ||
Debt, face amount | € 1,000,000 | |
Debt Interest Rate | 1.25% | |
Senior term loans due between 2019 and 2026 | Term Loan, Fixed Rate Due October 19, 2023 1.33% | ||
Debt Instrument [Line Items] | ||
Debt, face amount | € 73,500,000 | |
Debt Interest Rate | 1.33% | |
Senior term loans due between 2019 and 2026 | Term Loan, Fixed Rate Due October 19, 2026 1.98% | ||
Debt Instrument [Line Items] | ||
Debt, face amount | € 52,500,000 | |
Debt Interest Rate | 1.98% |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2018 | ||
Unrecognized net actuarial losses | $ 380.6 | $ 404.8 | $ 336.6 | ||
Reduction in equity | $ 285.1 | 304.5 | 249 | ||
Defined benefit plan, target allocation percentage of assets, near-term benefit payments | 30.00% | ||||
Defined benefit plan, target allocation percentage of assets, long-term growth | 70.00% | ||||
Company contributions | $ 12.3 | 11.6 | 12 | ||
Alternative Investments | |||||
Defined benefit plan, target plan asset allocations | 5.00% | ||||
Equity Securities | |||||
Defined benefit plan, target plan asset allocations | 40.00% | ||||
Fixed Income Investments | |||||
Defined benefit plan, target plan asset allocations | 55.00% | ||||
Minimum | |||||
Percentage of joint venture's unrecognized net actuarial losses and unrecognized prior service cost | 20.00% | ||||
ENPP | |||||
Minimum age for vesting | 50 years | ||||
Minimum participation period to qualify for payment | 10 years | ||||
Minimum service period to vest | 5 years | ||||
Minimum age to receive benefits | 65 years | ||||
Period over which retirement benefits are paid | 15 years | ||||
Period considered when determining retirement benefits | 3 years | ||||
Minimum service period | 20 years | ||||
Final years of service | 10 years | ||||
Pension and Other Postretirement Benefit Plans [Member] | |||||
Aggregate projected benefit obligation | $ 946 | 877.6 | |||
Accumulated benefit obligation | 891.2 | 823.8 | |||
Fair value of plan assets | 690.8 | 600.9 | |||
Reduction in equity | 379.3 | 403.5 | |||
Tax effect of benefit plans | $ 95 | $ 99.8 | |||
Pension Benefits | |||||
Percentage of fixed income securities consisting of high-yield securities | 13.00% | 13.00% | |||
Percentage of Fixed Income Securities Consisting of Foreign Securities | 15.00% | 31.00% | |||
Unrecognized net actuarial losses | $ 360.1 | $ 384.7 | |||
Net prior service (credit) cost | 12.2 | 13.4 | |||
Net loss recognized due to settlement | $ 0.2 | $ 0.4 | $ 0.2 | ||
Weighted average discount rate | 2.50% | 2.70% | |||
Benefit payments in 2018 (less than) | $ 47.6 | ||||
Benefit payments made to defined benefit pension plans and ENPP | 43.3 | ||||
Benefits paid | $ 42.6 | $ 44.1 | |||
Weighted average expected long-term rate of return on plan assets | 5.80% | 6.80% | 6.80% | ||
Pension Benefits | Forecast | |||||
Net actuarial (gain) loss that will be amortized from accumulated other comprehensive loss | $ 12.2 | ||||
Net prior service (credit) cost that will be amortized from accumulated other comprehensive loss | $ (1.2) | ||||
Postretirement Benefits | |||||
Unrecognized net actuarial losses | $ 3.8 | $ 2 | |||
Net prior service (credit) cost | 3.2 | $ 3.4 | |||
Net actuarial (gain) loss that will be amortized from accumulated other comprehensive loss | 0.1 | ||||
Net prior service (credit) cost that will be amortized from accumulated other comprehensive loss | $ (0.2) | ||||
Weighted average discount rate | 4.90% | 5.30% | |||
Benefit payments in 2018 (less than) | $ 1.6 | ||||
Benefits paid | $ 1.6 | $ 1.2 | |||
Brazilian Postretirement Benefit Obligation, Defined Benefit [Member] | |||||
Health care cost trend rate assumed | 11.00% | 11.80% | |||
Ultimate health care cost trend rate | 5.30% | 6.10% | |||
Benefit payments in 2018 (less than) | $ 0.1 | ||||
U.S Based Postretirement Health Care and Life Insurance Benefit Plans | |||||
Health care cost trend rate assumed | 6.75% | 7.00% | |||
Ultimate health care cost trend rate | 5.00% | 5.00% | |||
Benefit payments in 2018 (less than) | $ 1.6 | ||||
UNITED STATES | Pension Benefits | |||||
Aggregate projected benefit obligation | 129.6 | $ 118.1 | |||
Accumulated benefit obligation | 111.5 | 101.9 | |||
Fair value of plan assets | $ 36.6 | $ 36.2 | |||
Weighted average discount rate | 3.70% | 4.25% | |||
Expected minimum contribution | $ 3.1 | ||||
Defined benefit plan, target allocation percentage of assets, near-term benefit payments | 15.00% | ||||
Defined benefit plan, target allocation percentage of assets, long-term growth | 85.00% | ||||
Defined benefit plan, assumptions used in investment strategy, expected return next fiscal year | 6.40% | ||||
Weighted average expected long-term rate of return on plan assets | [1] | 6.00% | 6.00% | 6.00% | |
UNITED STATES | Pension Benefits | Large and small cap domestic equity securities | |||||
Defined benefit plan, target plan asset allocations | 30.00% | ||||
UNITED STATES | Pension Benefits | International equity securities | |||||
Defined benefit plan, target plan asset allocations | 12.00% | ||||
UNITED STATES | Pension Benefits | Fixed Income Securities | |||||
Defined benefit plan, target plan asset allocations | 44.00% | ||||
UNITED STATES | Pension Benefits | Alternative Investments | |||||
Defined benefit plan, target plan asset allocations | 14.00% | ||||
Foreign Plan [Member] | U.K. Pension Plans, Defined Benefit | |||||
Expected minimum contribution | $ 20.6 | ||||
Weighted average expected long-term rate of return on plan assets | 5.50% | ||||
Foreign Plan [Member] | Pension Benefits | |||||
Expected minimum contribution | $ 29.8 | ||||
Defined benefit plan, historical average return on asset mix | 6.00% | ||||
Corporate Joint Venture | GIMA | |||||
Reduction in equity | $ (1.3) | $ (1.3) | |||
Tax effect of benefit plans | $ 0.5 | $ 0.5 | |||
Percentage of joint venture's unrecognized net actuarial losses and unrecognized prior service cost | 50.00% | 50.00% | |||
Net loss recognized due to settlement | $ 0.1 | $ 0.1 | |||
[1] | Applicable for U.S. funded, qualified plans. |
Employee Benefit Plans (Net Pen
Employee Benefit Plans (Net Pension And Postretirement Cost) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Benefits | |||
Service cost | $ 17.1 | $ 16.2 | $ 18.7 |
Interest cost | 20.6 | 24.6 | 31.2 |
Expected return on plan assets | (35.9) | (38.8) | (44.4) |
Amortization of net actuarial losses | 13.4 | 10 | 8 |
Amortization of prior service cost | 1.2 | 1 | 0.4 |
Net loss recognized due to settlement | 0.2 | 0.4 | 0.2 |
Net gain recognized due to curtailment | 0 | (0.1) | 0 |
Special termination benefits | 0 | 0 | 0.5 |
Net annual pension cost | $ 16.6 | $ 13.3 | $ 14.6 |
Weighted average discount rate | 2.70% | 3.60% | 3.50% |
Postretirement Benefits | |||
Service cost | $ 0.1 | $ 0 | $ 0 |
Interest cost | 1.4 | 1.4 | 1.3 |
Amortization of net actuarial losses | 0.1 | 0 | 0.1 |
Amortization of prior service cost | 0.2 | 0.2 | 0.2 |
Net annual pension cost | $ 1.8 | $ 1.6 | $ 1.6 |
Weighted average discount rate | 5.30% | 5.10% | 4.60% |
Employee Benefit Plans (Assumpt
Employee Benefit Plans (Assumptions for Pension and Postretirement Cost) (Details) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Minimum | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Rate of increase in future compensation | 1.50% | 2.00% | 2.25% | |
Maximum | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Rate of increase in future compensation | 5.00% | 5.00% | 5.00% | |
Pension Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Weighted average discount rate | 2.70% | 3.60% | 3.50% | |
Weighted average expected long-term rate of return on plan assets | 5.80% | 6.80% | 6.80% | |
UNITED STATES | Pension Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Weighted average discount rate | 4.25% | 4.60% | 4.15% | |
Weighted average expected long-term rate of return on plan assets | [1] | 6.00% | 6.00% | 6.00% |
Rate of increase in future compensation | [2] | 5.00% | 5.00% | 5.00% |
[1] | Applicable for U.S. funded, qualified plans. | |||
[2] | Applicable for U.S. unfunded, nonqualified plan. |
Employee Benefit Plans (Net Fun
Employee Benefit Plans (Net Funded Status) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Change in plan assets | |||
Fair value of plan assets at beginning of year | $ 601.7 | ||
Fair value of plan assets at end of year | $ 601.7 | ||
Unrecognized net actuarial losses | 380.6 | 404.8 | $ 336.6 |
Amounts recognized in Consolidated Balance Sheets: | |||
Pensions and postretirement health care benefits (noncurrent) | (247.3) | (270) | |
Pension Benefits | |||
Change in benefit obligation | |||
Benefit obligation, beginning of period | 849.8 | 844.4 | |
Service cost | 17.1 | 16.2 | 18.7 |
Interest cost | 20.6 | 24.6 | 31.2 |
Plan participants’ contributions | 1.1 | 1.1 | |
Actuarial losses | 0.5 | 121.9 | |
Amendments | 0 | 3.3 | |
Settlements | (0.7) | (3.8) | |
Curtailments | 0 | (0.4) | |
Benefits paid | (42.6) | (44.1) | |
Foreign currency exchange rate changes | 70.9 | (113.4) | |
Benefit obligation, end of period | 916.7 | 849.8 | 844.4 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 601.7 | 630.7 | |
Actual return on plan assets | 47.3 | 84.4 | |
Employer contributions | 30.3 | 31.3 | |
Plan participants’ contributions | 1.1 | 1.1 | |
Benefits paid | (42.6) | (44.1) | |
Settlements | (0.7) | (3.8) | |
Foreign currency exchange rate changes | 54.7 | (97.9) | |
Fair value of plan assets at end of year | 691.8 | 601.7 | 630.7 |
Funded status | (224.9) | (248.1) | |
Unrecognized net actuarial losses | 360.1 | 384.7 | |
Unrecognized prior service cost | 12.2 | 13.4 | |
Accumulated other comprehensive loss | (372.3) | (398.1) | |
Net amount recognized | (224.9) | (248.1) | |
Amounts recognized in Consolidated Balance Sheets: | |||
Other current liabilities | (3.9) | (3.5) | |
Accrued expenses | (2.3) | (1.7) | |
Pensions and postretirement health care benefits (noncurrent) | (218.7) | (242.9) | |
Postretirement Benefits | |||
Change in benefit obligation | |||
Benefit obligation, beginning of period | 28.6 | 27.3 | |
Service cost | 0.1 | 0 | 0 |
Interest cost | 1.4 | 1.4 | 1.3 |
Plan participants’ contributions | 0 | 0 | |
Actuarial losses | 1.8 | 0.6 | |
Amendments | 0 | 0 | |
Settlements | 0 | 0 | |
Curtailments | 0 | 0 | |
Benefits paid | (1.6) | (1.2) | |
Foreign currency exchange rate changes | (0.1) | 0.5 | |
Benefit obligation, end of period | 30.2 | 28.6 | 27.3 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 1.6 | 1.2 | |
Plan participants’ contributions | 0 | 0 | |
Benefits paid | (1.6) | (1.2) | |
Settlements | 0 | 0 | |
Foreign currency exchange rate changes | 0 | 0 | |
Fair value of plan assets at end of year | 0 | 0 | $ 0 |
Funded status | (30.2) | (28.6) | |
Unrecognized net actuarial losses | 3.8 | 2 | |
Unrecognized prior service cost | 3.2 | 3.4 | |
Accumulated other comprehensive loss | (7) | (5.4) | |
Net amount recognized | (30.2) | (28.6) | |
Amounts recognized in Consolidated Balance Sheets: | |||
Other current liabilities | (1.6) | (1.5) | |
Accrued expenses | 0 | 0 | |
Pensions and postretirement health care benefits (noncurrent) | $ (28.6) | $ (27.1) |
Employee Benefit Plans (Net Per
Employee Benefit Plans (Net Periodic Pension Costs Included in Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Before-Tax Amount | |||
Accumulated other comprehensive loss, before tax, beginning of period | $ 404.8 | $ 336.6 | |
Prior service cost arising during the year, before tax | (3.3) | ||
Net loss recognized due to settlement, before tax | 0.3 | 0.5 | |
Net gain recognized due to curtailment, before tax | (0.1) | ||
Net actuarial (loss) gain arising during the year, before tax | 9 | (76.5) | |
Amortization of prior service cost, before tax | 1.4 | 1.2 | |
Amortization of net actuarial losses | 13.5 | 10 | |
Accumulated other comprehensive loss, before tax, end of period | (380.6) | (404.8) | $ (336.6) |
Income Tax | |||
Accumulated other comprehensive loss, tax, beginning of period | (100.3) | (87.6) | |
Prior service cost arising during the year, tax | (0.7) | ||
Net loss recognized due to settlement, tax | 0.1 | 0.1 | |
Net gain recognized due to curtailment, tax | 0 | ||
Net actuarial (loss) gain arising during the year, tax | 2.4 | (13.6) | |
Amortization of prior service costs, tax | 0.1 | 0.1 | |
Amortization of net actuarial losses, tax | 2.2 | 1.4 | |
Accumulated other comprehensive loss, tax, end of period | (95.5) | (100.3) | (87.6) |
After-Tax Amount | |||
Accumulated other comprehensive loss, after tax, beginning of period | (304.5) | (249) | |
Prior service cost arising during the year | 0 | (2.6) | (4.7) |
Net loss recognized due to settlement | 0.2 | 0.4 | 0.2 |
Net gain recognized due to curtailment | 0 | (0.1) | 0 |
Net actuarial (loss) gain arising during the year, after tax | 6.6 | (62.9) | 2.1 |
Amortization of prior service costs, after tax | 1.3 | 1.1 | 0.4 |
Amortization of net actuarial losses included in net periodic pension cost | 11.3 | 8.6 | 6.3 |
Accumulated other comprehensive loss, after tax, end of period | $ (285.1) | $ (304.5) | $ (249) |
Employee Benefit Plans (Assum69
Employee Benefit Plans (Assumptions for Benefit Obligation) (Details) | Dec. 31, 2017 | Dec. 31, 2016 | |
Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Weighted average discount rate | 2.50% | 2.70% | |
Minimum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Rate of increase in future compensation | 1.75% | 1.50% | |
Maximum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Rate of increase in future compensation | 5.00% | 5.00% | |
UNITED STATES | Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Weighted average discount rate | 3.70% | 4.25% | |
Rate of increase in future compensation | [1] | 5.00% | 5.00% |
[1] | Applicable for U.S. unfunded, nonqualified plan. |
Employee Benefit Plans (One Per
Employee Benefit Plans (One Percentage Point Change in Health Care Trend Rate) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rate [Abstract] | |
Effect on service and interest cost, One percentage point increase | $ 0.2 |
Effect on service and interest cost, One percentage point decrease | (0.1) |
Effect on accumulated benefit obligation, One percentage point increase | 3.9 |
Effect on accumulated benefit obligation, One percentage point decrease | $ (3.2) |
Employee Benefit Plans (Expecte
Employee Benefit Plans (Expected Future Minimum Payments) (Details) $ in Millions | Dec. 31, 2017USD ($) |
Pension Benefits | |
Aggregate expected benefit payments | |
2,018 | $ 47.6 |
2,019 | 46.6 |
2,020 | 48.5 |
2,021 | 49.4 |
2,022 | 50 |
2023 through 2027 | 271.6 |
Total | 513.7 |
Postretirement Benefits | |
Aggregate expected benefit payments | |
2,018 | 1.6 |
2,019 | 1.7 |
2,020 | 1.7 |
2,021 | 1.8 |
2,022 | 1.8 |
2023 through 2027 | 9.4 |
Total | $ 18 |
Employee Benefit Plans (Asset A
Employee Benefit Plans (Asset Allocation) (Details) - Pension Benefits | Dec. 31, 2017 | Dec. 31, 2016 |
Foreign Plan [Member] | ||
Asset Category | ||
Equity Securities | 100.00% | 100.00% |
Foreign Plan [Member] | Equity Securities | ||
Asset Category | ||
Equity Securities | 40.00% | 39.00% |
Foreign Plan [Member] | Fixed Income Securities | ||
Asset Category | ||
Equity Securities | 53.00% | 54.00% |
Foreign Plan [Member] | Other Investments [Member] | ||
Asset Category | ||
Equity Securities | 7.00% | 7.00% |
UNITED STATES | ||
Asset Category | ||
Equity Securities | 100.00% | 100.00% |
UNITED STATES | Large and small cap domestic equity securities | ||
Asset Category | ||
Equity Securities | 31.00% | 29.00% |
UNITED STATES | International equity securities | ||
Asset Category | ||
Equity Securities | 12.00% | 11.00% |
UNITED STATES | Fixed Income Securities | ||
Asset Category | ||
Equity Securities | 43.00% | 42.00% |
UNITED STATES | Other Investments [Member] | ||
Asset Category | ||
Equity Securities | 14.00% | 18.00% |
Employee Benefit Plans (Fair Va
Employee Benefit Plans (Fair Value of Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | $ 601.7 | ||
Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 537.2 | ||
Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 0 | ||
Level 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 23.8 | ||
Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | $ 691.8 | $ 601.7 | $ 630.7 |
Percentage of Fixed Income Securities Consisting of Foreign Securities | 15.00% | 31.00% | |
Percentage of fixed income securities consisting of investment-grade corporate bonds | 30.00% | 19.00% | |
Percentage of fixed income securities consisting of high-yield securities | 13.00% | 13.00% | |
Percentage of fixed income securities consisting of government treasuries | 29.00% | 25.00% | |
Percentage of fixed income securities consisting of other various fixed income securities | 13.00% | 12.00% | |
Percentage of alternative investments consisting of long-short equity funds | 26.00% | 27.00% | |
Percentage of alternative investments consisting of event-driven funds | 21.00% | 23.00% | |
Percentage of alternative investments consisting of relative value funds | 39.00% | 32.00% | |
Percentage of alternative investments consisting of credit funds | 6.00% | 6.00% | |
Percentage of alternative investments consisting of hedged and non-hedged funds | 8.00% | 12.00% | |
Pension Benefits | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | $ 617.6 | ||
Pension Benefits | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 0 | ||
Pension Benefits | Level 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 27.8 | $ 23.8 | 24.1 |
Pension Benefits | Equity Securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 267.2 | 227.3 | |
Pension Benefits | Equity Securities | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 267.2 | 227.3 | |
Pension Benefits | Equity Securities | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 0 | 0 | |
Pension Benefits | Equity Securities | Level 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 0 | 0 | |
Pension Benefits | Global Equities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 121.7 | 103.6 | |
Pension Benefits | Global Equities | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 121.7 | 103.6 | |
Pension Benefits | Global Equities | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 0 | 0 | |
Pension Benefits | Global Equities | Level 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 0 | 0 | |
Pension Benefits | Non-U.S. Equities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 4.3 | 4.1 | |
Pension Benefits | Non-U.S. Equities | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 4.3 | 4.1 | |
Pension Benefits | Non-U.S. Equities | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 0 | 0 | |
Pension Benefits | Non-U.S. Equities | Level 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 0 | 0 | |
Pension Benefits | U.K. Equities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 129.9 | 109.1 | |
Pension Benefits | U.K. Equities | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 129.9 | 109.1 | |
Pension Benefits | U.K. Equities | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 0 | 0 | |
Pension Benefits | U.K. Equities | Level 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 0 | 0 | |
Pension Benefits | U.S. Large Cap Equities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 6.9 | 6.2 | |
Pension Benefits | U.S. Large Cap Equities | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 6.9 | 6.2 | |
Pension Benefits | U.S. Large Cap Equities | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 0 | 0 | |
Pension Benefits | U.S. Large Cap Equities | Level 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 0 | 0 | |
Pension Benefits | U.S. Small Cap Equities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 4.4 | 4.3 | |
Pension Benefits | U.S. Small Cap Equities | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 4.4 | 4.3 | |
Pension Benefits | U.S. Small Cap Equities | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 0 | 0 | |
Pension Benefits | U.S. Small Cap Equities | Level 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 0 | 0 | |
Pension Benefits | Fixed Income Securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 350.4 | 309.9 | |
Pension Benefits | Fixed Income Securities | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 350.4 | 309.9 | |
Pension Benefits | Fixed Income Securities | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 0 | 0 | |
Pension Benefits | Fixed Income Securities | Level 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 0 | 0 | |
Pension Benefits | Private Equity Funds [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 2.4 | 2.4 | |
Pension Benefits | Private Equity Funds [Member] | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 0 | 0 | |
Pension Benefits | Private Equity Funds [Member] | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 0 | 0 | |
Pension Benefits | Private Equity Funds [Member] | Level 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 2.4 | 2.4 | |
Pension Benefits | Aggregate Fixed Income | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 136 | 118 | |
Pension Benefits | Aggregate Fixed Income | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 136 | 118 | |
Pension Benefits | Aggregate Fixed Income | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 0 | 0 | |
Pension Benefits | Aggregate Fixed Income | Level 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 0 | 0 | |
Pension Benefits | International Fixed Income | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 214.4 | 191.9 | |
Pension Benefits | International Fixed Income | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 214.4 | 191.9 | |
Pension Benefits | International Fixed Income | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 0 | 0 | |
Pension Benefits | International Fixed Income | Level 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 0 | 0 | |
Pension Benefits | Cash and Cash Equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 34.8 | 34.4 | |
Pension Benefits | Cash and Cash Equivalents | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 0 | 0 | |
Pension Benefits | Cash and Cash Equivalents | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 0 | 0 | |
Pension Benefits | Cash and Cash Equivalents | Level 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 0 | 0 | |
Pension Benefits | Alternative Investments | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 37.2 | 36.8 | |
Pension Benefits | Alternative Investments | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 0 | 0 | |
Pension Benefits | Alternative Investments | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 0 | 0 | |
Pension Benefits | Alternative Investments | Level 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 2.4 | 2.4 | 2.4 |
Pension Benefits | Miscellaneous Funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 25.4 | 21.4 | |
Pension Benefits | Miscellaneous Funds | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 0 | 0 | |
Pension Benefits | Miscellaneous Funds | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 0 | 0 | |
Pension Benefits | Miscellaneous Funds | Level 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 25.4 | 21.4 | $ 21.7 |
Pension Benefits | Cash and cash equivalents measured at net asset value [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 11.6 | 6.3 | |
Pension Benefits | Cash [Member] | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 0 | 0 | |
Pension Benefits | Cash [Member] | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | 0 | 0 | |
Pension Benefits | Cash [Member] | Level 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total assets | $ 0 | $ 0 |
Employee Benefit Plans (Reconci
Employee Benefit Plans (Reconciliation of Level 3 Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | $ 601.7 | |
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) [Abstract] | ||
Fair value of plan assets at end of year | $ 601.7 | |
Pension Benefits | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 601.7 | 630.7 |
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) [Abstract] | ||
Foreign currency exchange rate changes | 54.7 | (97.9) |
Fair value of plan assets at end of year | 691.8 | 601.7 |
Pension Benefits | Alternative Investments | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 36.8 | |
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) [Abstract] | ||
Fair value of plan assets at end of year | 37.2 | 36.8 |
Pension Benefits | Miscellaneous Funds | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 21.4 | |
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) [Abstract] | ||
Fair value of plan assets at end of year | 25.4 | 21.4 |
Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 23.8 | |
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) [Abstract] | ||
Fair value of plan assets at end of year | 23.8 | |
Level 3 | Pension Benefits | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 23.8 | 24.1 |
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) [Abstract] | ||
Related to assets still held at reporting | (2.3) | 1 |
Relating to assets sold during period | 0 | 0 |
Purchases, sales and /or settlements | 3.4 | (0.8) |
Foreign currency exchange rate changes | 2.9 | (0.5) |
Fair value of plan assets at end of year | 27.8 | 23.8 |
Level 3 | Pension Benefits | Alternative Investments | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 2.4 | 2.4 |
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) [Abstract] | ||
Related to assets still held at reporting | (0.1) | 0 |
Relating to assets sold during period | 0 | 0 |
Purchases, sales and /or settlements | 0.1 | 0 |
Foreign currency exchange rate changes | 0 | 0 |
Fair value of plan assets at end of year | 2.4 | 2.4 |
Level 3 | Pension Benefits | Miscellaneous Funds | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 21.4 | 21.7 |
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) [Abstract] | ||
Related to assets still held at reporting | (2.2) | 1 |
Relating to assets sold during period | 0 | 0 |
Purchases, sales and /or settlements | 3.3 | (0.8) |
Foreign currency exchange rate changes | 2.9 | (0.5) |
Fair value of plan assets at end of year | $ 25.4 | $ 21.4 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) | 12 Months Ended | ||||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Accelerated Share Repurchases [Line Items] | |||||||
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 | |||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||||
Common stock, shares outstanding (in shares) | 79,553,825 | 79,465,393 | |||||
Shares available for grant (in shares) | 4,053,539 | ||||||
Purchases and retirement of common stock | $ 0 | $ 212,500,000 | $ 287,500,000 | ||||
Remaining authorized repurchase amount | 331,400,000 | ||||||
Common stock, quarterly dividends declared (in dollars per share) | $ 0.14 | $ 0.13 | $ 0.12 | ||||
2012, 2013, 2014 and 2016 Share Repurchase Program [Member] | |||||||
Accelerated Share Repurchases [Line Items] | |||||||
Authorized amount | 1,350,000,000 | ||||||
Accelerated Share Repurchase | |||||||
Accelerated Share Repurchases [Line Items] | |||||||
Purchases and retirement of common stock | $ 212,500,000 | $ 287,500,000 | |||||
Purchases and retirement of common stock (in shares) | 4,413,250 | 5,541,930 | |||||
December 2016 ASR Program | |||||||
Accelerated Share Repurchases [Line Items] | |||||||
Authorized amount | $ 300,000,000 | ||||||
Forecast | |||||||
Accelerated Share Repurchases [Line Items] | |||||||
Common stock, quarterly dividends declared (in dollars per share) | $ 0.15 |
Stockholders' Equity (Changes i
Stockholders' Equity (Changes in Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | $ 2,837.2 | $ 2,883.3 | $ 3,496.9 |
Net losses reclassified from accumulated other comprehensive loss | 14.6 | 10.7 | |
Other comprehensive income (loss), net of reclassification adjustments | 81.2 | 20.2 | (555.8) |
Ending balance | 3,095.3 | 2,837.2 | 2,883.3 |
Defined Benefit Pension Plans | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (304.5) | (249) | |
Other comprehensive income before reclassifications | 6.8 | (65.2) | |
Net losses reclassified from accumulated other comprehensive loss | 12.6 | 9.7 | |
Other comprehensive income (loss), net of reclassification adjustments | 19.4 | (55.5) | 4.3 |
Ending balance | (285.1) | (304.5) | (249) |
Cumulative Translation Adjustment | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (1,128.4) | (1,209.2) | |
Other comprehensive income before reclassifications | 56.6 | 80.8 | |
Net losses reclassified from accumulated other comprehensive loss | 0 | 0 | |
Other comprehensive income (loss), net of reclassification adjustments | 56.6 | 80.8 | (556.1) |
Ending balance | (1,071.8) | (1,128.4) | (1,209.2) |
Deferred Net Gains (Losses) on Derivatives | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (8.7) | (2) | (0.1) |
Other comprehensive income before reclassifications | 2 | (7.7) | (4.6) |
Net losses reclassified from accumulated other comprehensive loss | 2 | 1 | 2.7 |
Other comprehensive income (loss), net of reclassification adjustments | 4 | (6.7) | (1.9) |
Ending balance | (4.7) | (8.7) | (2) |
Accumulated Other Comprehensive Loss | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (1,441.6) | (1,460.2) | |
Other comprehensive income before reclassifications | 65.4 | 7.9 | |
Net losses reclassified from accumulated other comprehensive loss | 14.6 | 10.7 | |
Other comprehensive income (loss), net of reclassification adjustments | 80 | 18.6 | (553.7) |
Ending balance | $ (1,361.6) | $ (1,441.6) | $ (1,460.2) |
Stockholders' Equity (Reclassif
Stockholders' Equity (Reclassification Out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Cost of goods sold | $ 6,541.2 | $ 5,895 | $ 5,906.7 |
Interest expense, net | 45.1 | 52.1 | 45.4 |
Income before income taxes and equity in net earnings of affiliates | (283.8) | (204.9) | (279.4) |
Income tax provision | 133.6 | 92.2 | 72.5 |
Net income attributable to AGCO Corporation and subsidiaries | (186.4) | (160.1) | (266.4) |
Net losses reclassified from accumulated other comprehensive loss | (14.6) | (10.7) | |
Deferred Net Gains (Losses) on Derivatives | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Net losses reclassified from accumulated other comprehensive loss into income | 2.2 | 1 | 3.1 |
Reclassification from AOCI, tax | (0.2) | 0 | (0.4) |
Net losses reclassified from accumulated other comprehensive loss | (2) | (1) | $ (2.7) |
Defined Benefit Pension Plans | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Net losses reclassified from accumulated other comprehensive loss into income | 14.9 | 11.2 | |
Reclassification from AOCI, tax | (2.3) | (1.5) | |
Net losses reclassified from accumulated other comprehensive loss | (12.6) | (9.7) | |
Amortization of net actuarial losses | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Net losses reclassified from accumulated other comprehensive loss into income | 13.5 | 10 | |
Amortization of prior service cost | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Net losses reclassified from accumulated other comprehensive loss into income | 1.4 | 1.2 | |
Reclassification out of Accumulated Other Comprehensive Income | Deferred Net Gains (Losses) on Derivatives | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Income before income taxes and equity in net earnings of affiliates | 2.2 | (1) | |
Income tax provision | (0.2) | 0 | |
Net income attributable to AGCO Corporation and subsidiaries | 2 | 1 | |
Foreign Exchange Contract | Reclassification out of Accumulated Other Comprehensive Income | Deferred Net Gains (Losses) on Derivatives | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Cost of goods sold | (0.2) | (1) | |
Interest Rate Contract | Reclassification out of Accumulated Other Comprehensive Income | Deferred Net Gains (Losses) on Derivatives | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Interest expense, net | $ 2.4 | $ 2 |
Stock Incentive Plan (Narrative
Stock Incentive Plan (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 23, 2018 | Apr. 28, 2016 | Mar. 31, 2017 | Dec. 31, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Common stock, shares issuable (in shares) | 150,000,000 | 150,000,000 | |||||
Compensation cost related to unearned performance awards | $ 35.5 | ||||||
Recognition period | 2 years | ||||||
Total stock compensation expense | $ 38.4 | $ 18.4 | $ 12.5 | ||||
Excess tax benefit of stock awards | $ 0.1 | $ 0.1 | $ 0.7 | ||||
Shares available for grant (in shares) | 4,053,539 | ||||||
Long Term Incentive Plan | Minimum | |||||||
Target award percentages | 33.00% | ||||||
Long Term Incentive Plan | Maximum | |||||||
Target award percentages | 200.00% | ||||||
Performance Shares | |||||||
Shares awarded (in shares) | 539,598 | ||||||
Weighted average grant-date fair value of performance awards granted (in dollars per share) | $ 61.94 | $ 47.93 | $ 45.54 | ||||
Number of shares not vested (in shares) | 1,645,078 | 1,982,120 | |||||
Shares earned (in shares) | 0 | ||||||
Shares issued subsequent to year-end (in shares) | 0 | ||||||
Waived Stock Award [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award Accelerated Compensation Cost | $ 4.8 | ||||||
Restricted Stock Units (RSUs) | |||||||
Performance period | 3 years | ||||||
Shares awarded (in shares) | 111,166 | ||||||
Compensation cost related to unearned performance awards | $ 6.9 | ||||||
Recognition period | 2 years | ||||||
Weighted average grant-date fair value of performance awards granted (in dollars per share) | $ 61.99 | $ 45.10 | |||||
Number of shares not vested (in shares) | 237,468 | 222,730 | |||||
Shares earned (in shares) | 88,645 | ||||||
Stock Appreciation Rights (SARs) | |||||||
Vesting period | 4 years | ||||||
Compensation cost related to unearned performance awards | $ 4.3 | ||||||
Recognition period | 2 years | ||||||
Weighted average grant-date fair value of performance awards granted (in dollars per share) | $ 11.45 | $ 7.98 | $ 7.41 | ||||
SSAR Expiration Period | 7 years | ||||||
Total stock compensation expense | $ 3 | $ 3.8 | $ 5 | ||||
Weighted average remaining contractual life of SSARs outstanding, in years | 5 years | ||||||
Total fair value of SSARs vested | $ 3.5 | ||||||
Number of shares not vested (in shares) | 712,150 | ||||||
Total intrinsic value of outstanding SSARs | $ 20.1 | ||||||
Total intrinsic value of exercisable of SSARs | 7.3 | ||||||
Total intrinsic value of SSARs exercised | $ 10.8 | ||||||
SSARs granted (in shares) | 286,200 | ||||||
Restricted Stock | |||||||
Total stock compensation expense | $ 1 | ||||||
Weighted-average period for compensation cost expected to be recognized, in years | 1 year | ||||||
Restricted common stocks issued (in shares) | 14,968 | ||||||
Restricted common stocks issued after shares withheld for taxes (in shares) | 12,066 | ||||||
Long Term Incentive Plan | |||||||
Performance period | 3 years | ||||||
2006 Plan | |||||||
Common stock, shares issuable (in shares) | 10,000,000 | ||||||
Subsequent Event | Performance Shares | |||||||
Shares awarded (in shares) | 220,900 | ||||||
Subsequent Event | Restricted Stock Units (RSUs) | |||||||
Shares awarded (in shares) | 111,119 | ||||||
Subsequent Event | Stock Appreciation Rights (SARs) | |||||||
SSARs granted (in shares) | 157,700 |
Stock Incentive Plan (Performan
Stock Incentive Plan (Performance Award Transactions) (Details) - Performance Shares | 12 Months Ended |
Dec. 31, 2017shares | |
Share Activity | |
Shares awarded but not earned at January 1 (in shares) | 1,982,120 |
Shares awarded (in shares) | 539,598 |
Shares forfeited or unearned (in shares) | (876,640) |
Shares earned (in shares) | 0 |
Shares awarded but not earned at December 31 (in shares) | 1,645,078 |
Stock Incentive Plan Stock Ince
Stock Incentive Plan Stock Incentive Plan (Performance Awards Earned and Issued) (Details) - Performance Shares | 12 Months Ended |
Dec. 31, 2017shares | |
Schedule of Share-based compensation arrangements by share-based payment award, performance shares earned and issued [Line Items] | |
Shares earned (in shares) | 0 |
Shares issued subsequent to year-end (in shares) | 0 |
Stock Incentive Plan Stock In81
Stock Incentive Plan Stock Incentive Plan (Restricted Stock Units) (Details) - Restricted Stock Units (RSUs) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average grant date fair value (in dollars per share) | $ 61.99 | $ 45.10 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Shares awarded but not earned at January 1 (in shares) | 222,730 | |
Shares awarded (in shares) | 111,166 | |
Shares forfeited (in shares) | (7,783) | |
Shares earned (in shares) | (88,645) | |
Shares awarded but not earned at December 31 (in shares) | 237,468 | 222,730 |
Stock Incentive Plan (Weighted
Stock Incentive Plan (Weighted Average Grant-Date Fair Value Of SSARS And Assumptions Under Black-Scholes Option Model) (Details) - Stock Appreciation Rights (SARs) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value (in dollars per share) | $ 11.45 | $ 7.98 | $ 7.41 |
Expected life of awards (years) | 3 years | 3 years | 3 years |
Risk-free interest rate | 1.50% | 1.10% | 0.90% |
Expected volatility | 25.90% | 25.90% | 25.90% |
Expected dividend yield | 0.90% | 1.10% | 1.10% |
Stock Incentive Plan (SSAR Acti
Stock Incentive Plan (SSAR Activity) (Details) - Stock Appreciation Rights (SARs) | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Share Activity | |
SSARs outstanding, beginning of period (in shares) | shares | 1,458,611 |
SSARs granted (in shares) | shares | 286,200 |
SSARs exercised (in shares) | shares | (670,269) |
SSARs canceled or forfeited (in shares) | shares | (14,350) |
SSARs outstanding, end of period (in shares) | shares | 1,060,192 |
Weighted average SSAR exercise prices per share, Granted (in dollars per share) | $ 63.51 |
Weighted average SSAR exercise prices per share, Exercised (in dollars per share) | 52.04 |
Weighted average SSAR exercise prices per share, Canceled or forfeited (in dollars per share) | 48.42 |
Weighted average SSAR exercise prices per share Outstanding at December 31 (in dollars per share) | $ 52.48 |
Minimum | |
Share Activity | |
SSAR price ranges per share, Granted (in dollars per share) | 63.47 |
SSAR price ranges per share, Exercised (in dollars per share) | 32.01 |
SSAR price ranges per share, Canceled (in dollars per share) | 32.01 |
Maximum | |
Share Activity | |
SSAR price ranges per share, Granted (in dollars per share) | 70.41 |
SSAR price ranges per share, Exercised (in dollars per share) | 55.23 |
SSAR price ranges per share, Canceled (in dollars per share) | 63.47 |
Stock Incentive Plan (Schedule
Stock Incentive Plan (Schedule Of SSAR Exercise Price Range, Number Of Shares, Weighted Average Exercise Price And Remaining Contractual Lives) (Details) - Stock Appreciation Rights (SARs) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
SSARs Outstanding (in shares) | 1,060,192 | 1,458,611 |
SSARs Exercisable, Exercisable as of December 31 (in shares) | 348,042 | |
SSARs Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 50.32 | |
$43.39 – $52.94 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Prices, lower limit (in dollars per share) | 43.39 | |
Range of Exercise Prices, upper limit (in dollars per share) | $ 52.94 | |
SSARs Outstanding (in shares) | 614,600 | |
SSAR Outstanding, Weighted Average Remaining Contractual Life (Years) | 4 years 1 month 6 days | |
SSARs Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 46.35 | |
SSARs Exercisable, Exercisable as of December 31 (in shares) | 248,975 | |
SSARs Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 47.62 | |
$55.07 – $70.41 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Prices, lower limit (in dollars per share) | 55.07 | |
Range of Exercise Prices, upper limit (in dollars per share) | $ 70.41 | |
SSARs Outstanding (in shares) | 445,592 | |
SSAR Outstanding, Weighted Average Remaining Contractual Life (Years) | 5 years | |
SSARs Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 60.94 | |
SSARs Exercisable, Exercisable as of December 31 (in shares) | 99,067 | |
SSARs Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 57.11 |
Derivative Instruments and He85
Derivative Instruments and Hedging Activities (Narrative) (Details) € in Millions | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2016USD ($) | Dec. 31, 2017USD ($)country | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017EUR (€) | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Number of countries where products sold (over) | country | 150 | ||||
Net losses reclassified from accumulated other comprehensive loss into income | $ 2,000,000 | $ 1,000,000 | $ 2,700,000 | ||
Designated as Hedging Instrument | Cash Flow Hedging | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net losses reclassified from accumulated other comprehensive loss into income | 2,000,000 | 1,000,000 | 2,700,000 | ||
Notional amount of foreign currency derivatives | 1,798,200,000 | ||||
Designated as Hedging Instrument | Net Investment Hedging | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Notional amount of foreign currency derivatives | 374,200,000 | 329,200,000 | € 312 | ||
Foreign currency gains included in cumulative translation adjustment | (45,000,000) | 12,700,000 | |||
Interest Rate Swap | Designated as Hedging Instrument | Cash Flow Hedging | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Notional amount of foreign currency derivatives | $ 374,200,000 | € 312 | |||
Derivative, fixed interest rate | 0.3315% | 0.3315% | |||
Interest Rate Swap | Designated as Hedging Instrument | Fair Value Hedging | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Notional amount of foreign currency derivatives | $ 300,000,000 | ||||
Derivative, basis spread on variable rate | 4.14% | 4.14% | |||
Deferred gain on hedge termination | $ 7,300,000 | ||||
Foreign Exchange Contract | Designated as Hedging Instrument | Cash Flow Hedging | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Notional amount of foreign currency derivatives | $ 96,800,000 | 111,200,000 | |||
Foreign Exchange Contract | Not Designated as Hedging Instrument | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Notional amount of foreign currency derivatives | 1,701,400,000 | 1,550,200,000 | |||
Other Nonoperating Income (Expense) | Foreign Exchange Contract | Not Designated as Hedging Instrument | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) on derivative instruments | $ 38,300,000 | $ (5,700,000) | $ (67,300,000) |
Derivative Instruments and He86
Derivative Instruments and Hedging Activities (Summary Of Accumulated Other Comprehensive Loss Related To Derivatives) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
After-Tax Amount | |||
Beginning balance | $ 2,837.2 | $ 2,883.3 | $ 3,496.9 |
Net losses reclassified from accumulated other comprehensive loss into income | 14.6 | 10.7 | |
Ending balance | 3,095.3 | 2,837.2 | 2,883.3 |
Deferred Net Gains (Losses) on Derivatives | |||
Before-Tax Amount | |||
Accumulated derivative net gains, beginning of period | (10.1) | (3.3) | (0.2) |
Net changes in fair value of derivatives | 1.9 | (7.8) | (6.2) |
Net losses reclassified from accumulated other comprehensive loss into income | 2.2 | 1 | 3.1 |
Accumulated derivative net gains, end of period | (6) | (10.1) | (3.3) |
Income Tax | |||
Accumulated derivative net gains, beginning of period | (1.4) | (1.3) | (0.1) |
Net changes in fair value of derivatives | (0.1) | (0.1) | (1.6) |
Net losses reclassified from accumulated other comprehensive loss into income | 0.2 | 0 | 0.4 |
Accumulated derivative net gains, end of period | (1.3) | (1.4) | (1.3) |
After-Tax Amount | |||
Beginning balance | (8.7) | (2) | (0.1) |
Net changes in fair value of derivatives | 2 | (7.7) | (4.6) |
Net losses reclassified from accumulated other comprehensive loss into income | 2 | 1 | 2.7 |
Ending balance | $ (4.7) | $ (8.7) | $ (2) |
Derivative Instruments and He87
Derivative Instruments and Hedging Activities ( Fair Value Of Derivative Instruments) (Details) € in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017EUR (€) | |
Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income | $ (2) | $ (1) | $ (2.7) | |
Derivative assets | 7.8 | 6.5 | ||
Derivative liabilities | 17 | 13.4 | ||
Designated as Hedging Instrument | Foreign Exchange Contract | Other current assets | ||||
Derivative assets | 0 | 0.2 | ||
Designated as Hedging Instrument | Foreign Exchange Contract | Other current liabilities | ||||
Derivative liabilities | 1.2 | 3.9 | ||
Designated as Hedging Instrument | Interest Rate Contract | Other noncurrent assets | ||||
Derivative assets | 0 | 0 | ||
Designated as Hedging Instrument | Interest Rate Contract | Other noncurrent liabilities | ||||
Derivative liabilities | 4.8 | 6.4 | ||
Not Designated as Hedging Instrument | Foreign Exchange Contract | ||||
Derivative, Notional Amount | 1,701.4 | 1,550.2 | ||
Not Designated as Hedging Instrument | Foreign Exchange Contract | Other current assets | ||||
Derivative assets | 7.8 | 6.3 | ||
Not Designated as Hedging Instrument | Foreign Exchange Contract | Other current liabilities | ||||
Derivative liabilities | 11 | 3.1 | ||
Cash Flow Hedging | Designated as Hedging Instrument | ||||
Gain (Loss) Recognized in Accumulated Other Comprehensive Loss | 2 | (7.7) | (4.6) | |
Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income | (2) | (1) | (2.7) | |
Derivative, Notional Amount | 1,798.2 | |||
Cash Flow Hedging | Designated as Hedging Instrument | Interest Rate Swap | ||||
Derivative, Notional Amount | 374.2 | € 312 | ||
Cash Flow Hedging | Designated as Hedging Instrument | Foreign Exchange Contract | ||||
Derivative, Notional Amount | 96.8 | 111.2 | ||
Other Nonoperating Income (Expense) | Not Designated as Hedging Instrument | Foreign Exchange Contract | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 38.3 | (5.7) | (67.3) | |
Cost of Goods, Total | Cash Flow Hedging | Designated as Hedging Instrument | Foreign Exchange Contract | ||||
Gain (Loss) Recognized in Accumulated Other Comprehensive Loss | 2.7 | (2.6) | (2.3) | |
Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income | 0.4 | 1 | (2.4) | |
Interest Expense | Cash Flow Hedging | Designated as Hedging Instrument | Interest Rate Swap | ||||
Gain (Loss) Recognized in Accumulated Other Comprehensive Loss | (0.7) | (5.1) | (2.3) | |
Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income | $ (2.4) | $ (2) | $ (0.3) |
Commitments and Contingencies88
Commitments and Contingencies (Details) BRL in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017BRL | |
Interest payments related to indebtedness | ||||
2,018 | $ 29,200,000 | |||
2,019 | 26,800,000 | |||
2,020 | 47,300,000 | |||
2,021 | 20,900,000 | |||
2,022 | 2,500,000 | |||
Thereafter | 5,700,000 | |||
Total | 132,400,000 | |||
Capital lease obligations | ||||
2,018 | 5,500,000 | |||
2,019 | 3,800,000 | |||
2,020 | 2,400,000 | |||
2,021 | 1,500,000 | |||
2,022 | 1,100,000 | |||
Thereafter | 3,500,000 | |||
Total | 17,800,000 | |||
Operating lease obligations | ||||
2,018 | 47,500,000 | |||
2,019 | 30,000,000 | |||
2,020 | 21,700,000 | |||
2,021 | 16,300,000 | |||
2,022 | 12,100,000 | |||
Thereafter | 39,600,000 | |||
Total | 167,200,000 | |||
Unconditional purchase obligations | ||||
2,018 | 64,400,000 | |||
2,019 | 7,300,000 | |||
2,020 | 2,200,000 | |||
2,021 | 900,000 | |||
2,022 | 100,000 | |||
Thereafter | 0 | |||
Total | 74,900,000 | |||
Other short-term and long-term obligations | ||||
2,018 | 105,800,000 | |||
2,019 | 71,000,000 | |||
2,020 | 50,100,000 | |||
2,021 | 60,200,000 | |||
2,022 | 33,100,000 | |||
Thereafter | 35,900,000 | |||
Total | 356,100,000 | |||
Total contractual cash obligations | ||||
2,018 | 252,400,000 | |||
2,019 | 138,900,000 | |||
2,020 | 123,700,000 | |||
2,021 | 99,800,000 | |||
2,022 | 48,900,000 | |||
Thereafter | 84,700,000 | |||
Total | 748,400,000 | |||
Guarantees | ||||
2,018 | 109,200,000 | |||
2,019 | 2,800,000 | |||
2,020 | 2,000,000 | |||
2,021 | 900,000 | |||
2,022 | 200,000 | |||
Thereafter | 0 | |||
Total | 115,100,000 | |||
Guarantees [Abstract] | ||||
Guaranteed indebtedness owed to third parties | 115,100,000 | |||
Total lease expense | 73,000,000 | $ 76,800,000 | $ 77,200,000 | |
Loss Contingency [Abstract] | ||||
Tax disallowance not including interest and penalties | 39,700,000 | BRL 131.5 | ||
Retail Finance Joint Venture | ||||
Guarantees [Abstract] | ||||
Maximum inventory exposure per calendar year | 6,000,000 | |||
Designated as Hedging Instrument | Cash Flow Hedging | ||||
Guarantees [Abstract] | ||||
Notional amount of foreign currency derivatives | $ 1,798,200,000 |
Fair Value of Financial Instr89
Fair Value of Financial Instrument (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of plan assets | $ 601,700,000 | |
Derivative assets | $ 7,800,000 | 6,500,000 |
Derivative liabilities | 17,000,000 | 13,400,000 |
Long-term debt | 324,700,000 | |
Debt, face amount | 305,300,000 | |
5 7/8% Senior notes due 2021 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt, face amount | 305,300,000 | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of plan assets | 537,200,000 | |
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of plan assets | 0 | |
Derivative assets | 7,800,000 | 6,500,000 |
Derivative liabilities | 17,000,000 | 13,400,000 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of plan assets | 23,800,000 | |
Derivative assets | 0 | 0 |
Derivative liabilities | $ 0 | $ 0 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||
Investments in retail finance joint ventures | $ 800,000 | $ 4,500,000 | $ 3,800,000 |
Dividends from related parties | $ 78,500,000 | 44,500,000 | |
Rabobank | |||
Related Party Transaction [Line Items] | |||
Ownership interest of controlling interest | 51.00% | ||
Finance joint ventures | |||
Related Party Transaction [Line Items] | |||
Investments in retail finance joint ventures | $ 0 | 2,800,000 | 0 |
TAFE | |||
Related Party Transaction [Line Items] | |||
Cost method investment, ownership percentage | 23.75% | ||
Beneficial ownership of related parties (in shares) | 12,150,152 | ||
Beneficial ownership of related parties, maximum shares allowed per letter agreement (in shares) | 12,170,290 | ||
Purchases from related party | $ 102,000,000 | 128,500,000 | 129,200,000 |
Revenue from related parties | 1,200,000 | 1,100,000 | 2,200,000 |
Dividends from related parties | 1,800,000 | 1,600,000 | 1,700,000 |
Praxair Inc | |||
Related Party Transaction [Line Items] | |||
Purchases from related party | 1,500,000 | 2,000,000 | 600,000 |
PPG Industries, Inc. | |||
Related Party Transaction [Line Items] | |||
Purchases from related party | $ 7,200,000 | $ 3,100,000 | $ 3,500,000 |
Segment Reporting (Sales Inform
Segment Reporting (Sales Information By Reportable Segments) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)segments | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Number of reportable segments | segments | 4 | ||
Net sales | $ 8,306.5 | $ 7,410.5 | $ 7,467.3 |
Income (loss) from operations | 403.3 | 288.4 | 361.1 |
Depreciation | 222.8 | 223.4 | 217.4 |
Assets | 7,971.7 | 7,168.4 | 6,497.7 |
Capital expenditures | 203.9 | 201 | 211.4 |
Operating Segments | |||
Net sales | 8,306.5 | 7,410.5 | 7,467.3 |
Income (loss) from operations | 628 | 488.1 | 546.9 |
Depreciation | 222.8 | 223.4 | 217.4 |
Assets | 4,390 | 3,779.4 | 3,609.5 |
Capital expenditures | 203.9 | 201 | 211.4 |
North America | |||
Net sales | 1,876.7 | ||
North America | Operating Segments | |||
Net sales | 1,876.7 | 1,807.7 | 1,965 |
Income (loss) from operations | 64.7 | 39.1 | 123.4 |
Depreciation | 61.5 | 62.5 | 62.7 |
Assets | 1,064.1 | 978.5 | 984.4 |
Capital expenditures | 59.1 | 45.3 | 48.6 |
South America | |||
Net sales | 1,063.5 | ||
South America | Operating Segments | |||
Net sales | 1,063.5 | 917.5 | 949 |
Income (loss) from operations | 14.5 | 19.9 | 34.4 |
Depreciation | 30.5 | 22.9 | 20.9 |
Assets | 752.1 | 739.4 | 495.7 |
Capital expenditures | 43 | 56 | 28.6 |
Europe/ Middle East | |||
Net sales | 4,614.3 | ||
Europe/ Middle East | Operating Segments | |||
Net sales | 4,614.3 | 4,089.7 | 4,037.6 |
Income (loss) from operations | 500 | 409.4 | 401.3 |
Depreciation | 113 | 116.6 | 120.3 |
Assets | 2,074.4 | 1,635.2 | 1,732.9 |
Capital expenditures | 92.9 | 90.1 | 95.4 |
Asia/Pacific/Africa | |||
Net sales | 752 | ||
Asia/Pacific/Africa | Operating Segments | |||
Net sales | 752 | 595.6 | 515.7 |
Income (loss) from operations | 48.8 | 19.7 | (12.2) |
Depreciation | 17.8 | 21.4 | 13.5 |
Assets | 499.4 | 426.3 | 396.5 |
Capital expenditures | $ 8.9 | $ 9.6 | $ 38.8 |
Segment Reporting (Income From
Segment Reporting (Income From Operations And Total Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income from operations | $ 403.3 | $ 288.4 | $ 361.1 | |
Amortization of intangibles | (57) | (51.2) | (42.7) | |
Cash and cash equivalents | 367.7 | 429.7 | 426.7 | $ 363.7 |
Receivables from affiliates | 23.4 | 54.4 | ||
Investment in affiliates | 409 | 414.9 | ||
Intangible assets, net | 649 | 607.3 | ||
Goodwill | 1,541.4 | 1,376.4 | 1,114.5 | $ 1,192.8 |
Total assets | 7,971.7 | 7,168.4 | 6,497.7 | |
Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income from operations | 628 | 488.1 | 546.9 | |
Total assets | 4,390 | 3,779.4 | 3,609.5 | |
Segment Reconciling Items | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Corporate expenses | (120.9) | (119.7) | (109.2) | |
Stock compensation (expense) credit | (35.6) | (16.9) | (11.6) | |
Restructuring and other infrequent expenses | (11.2) | (11.9) | (22.3) | |
Amortization of intangibles | (57) | (51.2) | (42.7) | |
Cash and cash equivalents | 367.7 | 429.7 | 426.7 | |
Investment in affiliates | 409 | 414.9 | 392.9 | |
Deferred tax assets, other current and noncurrent assets | 614.6 | 560.7 | 446.4 | |
Intangible assets, net | 649 | 607.3 | 507.7 | |
Goodwill | $ 1,541.4 | $ 1,376.4 | $ 1,114.5 |
Segment Reporting (Schedule of
Segment Reporting (Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 8,306.5 | $ 7,410.5 | $ 7,467.3 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 1,445.7 | 1,404.6 | 1,624 |
Canada | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 296.9 | 286.7 | 233.6 |
Germany | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 997.4 | 891.2 | 913.2 |
France | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 815.7 | 746.9 | 762.6 |
United Kingdom and Ireland | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 512.6 | 440.7 | 414.5 |
Finland and Scandinavia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 721.3 | 677.7 | 637 |
Other Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 1,396 | 1,127.9 | 1,077.7 |
South America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 1,046 | 898.2 | 932.3 |
Middle East and Algeria | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 171.3 | 205.4 | 232.8 |
Africa | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 138.1 | 116.2 | 113.6 |
Asia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 366.4 | 266.8 | 201 |
Australia and New Zealand | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 247.4 | 212.6 | 201.1 |
Mexico, Central America and Caribbean | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 151.7 | $ 135.6 | $ 123.9 |
Segment Reporting (Revenue from
Segment Reporting (Revenue from External Customers by Products and Services) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue from External Customer [Line Items] | |||
Net sales | $ 8,306.5 | $ 7,410.5 | $ 7,467.3 |
Tractors | |||
Revenue from External Customer [Line Items] | |||
Net sales | 4,785.2 | 4,225.1 | 4,244.1 |
Replacement parts | |||
Revenue from External Customer [Line Items] | |||
Net sales | 1,305 | 1,211.3 | 1,204.4 |
Combines | |||
Revenue from External Customer [Line Items] | |||
Net sales | 349 | 302.8 | 331.9 |
Application equipment | |||
Revenue from External Customer [Line Items] | |||
Net sales | 235.2 | 257.2 | 291.1 |
Other machinery | |||
Revenue from External Customer [Line Items] | |||
Net sales | 582.5 | 521.6 | 629.6 |
Grain storage and protein production systems | |||
Revenue from External Customer [Line Items] | |||
Net sales | $ 1,049.6 | $ 892.5 | $ 766.2 |
Segment Reporting (Schedule o95
Segment Reporting (Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment and amortizable intangible assets | $ 2,045.7 | $ 1,884.2 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment and amortizable intangible assets | 647.9 | 594.6 |
Germany | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment and amortizable intangible assets | 405.5 | 344.8 |
Brazil | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment and amortizable intangible assets | 217.9 | 210.4 |
Finland | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment and amortizable intangible assets | 149.9 | 145.9 |
China | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment and amortizable intangible assets | 127.7 | 130 |
Denmark | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment and amortizable intangible assets | 125.7 | 119.6 |
Italy | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment and amortizable intangible assets | 123 | 106.7 |
France | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment and amortizable intangible assets | 66 | 59.9 |
Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment and amortizable intangible assets | $ 182.1 | $ 172.3 |
Schedule II - Valuation and Q96
Schedule II - Valuation and Qualifying Account (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Doubtful accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 33.7 | $ 29.3 | $ 32.1 |
Additions, Acquired Businesses | 2.2 | 2.2 | 0 |
Additions, Charged (Credited) to Costs and Expenses | 4.9 | 3.6 | 5.6 |
Deductions | (5.3) | (1.1) | (3) |
Foreign Currency Translation | 2 | (0.3) | (5.4) |
Balance at End of Period | 37.5 | 33.7 | 29.3 |
Accruals of Severance, Relocation and Other Integration Costs | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 15.3 | 16.9 | 25.4 |
Additions, Charged (Credited) to Costs and Expenses | 12.4 | 12 | 23 |
Additions, Reversal of Accrual | (1.4) | (0.1) | (0.7) |
Deductions | (16.8) | (13.3) | (29.5) |
Foreign Currency Translation | 1.4 | (0.2) | (1.3) |
Balance at End of Period | 10.9 | 15.3 | 16.9 |
Deferred Tax Assets | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 116 | 75.8 | 93.3 |
Additions, Acquired Businesses | 0 | 0 | 0 |
Additions, Charged (Credited) to Costs and Expenses | (38.4) | 37.9 | (4.5) |
Deductions | 0 | 0 | 0 |
Foreign Currency Translation | 4.3 | 2.3 | (13) |
Balance at End of Period | $ 81.9 | $ 116 | $ 75.8 |