Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 31, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-16191 | ||
Entity Registrant Name | TENNANT CO | ||
Entity Incorporation, State or Country Code | MN | ||
Entity Tax Identification Number | 41-0572550 | ||
Entity Address, Address Line One | 10400 Clean Street | ||
Entity Address, City or Town | Eden Prairie | ||
Entity Address, State or Province | MN | ||
Entity Address, Postal Zip Code | 55344 | ||
City Area Code | 763 | ||
Local Phone Number | 540-1200 | ||
Title of 12(b) Security | Common Stock, par value $0.375 per share | ||
Trading Symbol | TNC | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,486,501,585 | ||
Entity Common Stock, Shares Outstanding | 18,620,098 | ||
Documents Incorporated by Reference | Portions of the registrant’s Proxy Statement for its 2023 annual meeting of shareholders (the “2023 Proxy Statement”) are incorporated by reference in Part III. | ||
Entity Central Index Key | 0000097134 | ||
Amendment Flag | false | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2023 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 34 |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | Minneapolis, Minnesota |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Net sales | $ 1,243.6 | $ 1,092.2 | $ 1,090.8 |
Cost of sales | 715.8 | 671.3 | 652.8 |
Gross profit | 527.8 | 420.9 | 438 |
Selling and administrative expense | 352.6 | 306.3 | 321.9 |
Research and development expense | 36.6 | 31.1 | 32.2 |
Gain on sale of assets | 0 | (3.7) | (9.8) |
Operating income | 138.6 | 87.2 | 93.7 |
Interest expense, net | (13.5) | (7.1) | (7.3) |
Net foreign currency transaction gain (loss) | 0.3 | (1.2) | (0.7) |
Loss on extinguishment of debt | 0 | 0 | (11.3) |
Other (expense) income, net | (1.6) | 0.6 | (0.3) |
Income before income taxes | 123.8 | 79.5 | 74.1 |
Income tax expense | 14.3 | 13.2 | 9.2 |
Net income | $ 109.5 | $ 66.3 | $ 64.9 |
Net income per share | |||
Net income per share, Basic (in dollars per share) | $ 5.92 | $ 3.58 | $ 3.51 |
Net income per share, Diluted (in dollars per share) | $ 5.83 | $ 3.55 | $ 3.44 |
Weighted average shares outstanding: | |||
Weighted average shares outstanding, Basic (in shares) | 18,509,523 | 18,494,356 | 18,499,674 |
Weighted average shares outstanding, Diluted (in shares) | 18,783,633 | 18,697,255 | 18,849,217 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 109.5 | $ 66.3 | $ 64.9 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments (net of related tax benefit (expense) of $0.8, $(1.2), and $0.4, respectively) | 8.3 | (17.9) | (16.9) |
Pension and postretirement medical benefits (net of related tax benefit (expense) of $(0.3), $(1.6), and $0.3, respectively) | 1 | 4.8 | (0.4) |
Derivative financial instruments (net of tax (expense) benefit of $0.4, $(0.3), and $0.1, respectively) | (1.4) | 0.8 | (0.5) |
Total other comprehensive income (loss), net of tax | 7.9 | (12.3) | (17.8) |
Comprehensive income | $ 117.4 | $ 54 | $ 47.1 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Foreign currency translation adjustments tax (expense) benefit | $ 0.8 | $ (1.2) | $ 0.4 |
Pension and postretirement medical tax (expense) benefit | (0.3) | (1.6) | 0.3 |
Cash flow hedge tax (expense) benefit, tax | $ 0.4 | $ (0.3) | $ 0.1 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash, cash equivalents, and restricted cash | $ 117.1 | $ 77.4 |
Receivables, less allowances of $7.2 and $6.1, respectively | 247.6 | 251.5 |
Inventories | 175.9 | 206.6 |
Prepaid and other current assets | 28.5 | 39.8 |
Total current assets | 569.1 | 575.3 |
Property, plant and equipment, less accumulated depreciation of $304.0 and $279.3, respectively | 187.7 | 179.9 |
Operating lease assets | 41.7 | 31.8 |
Goodwill | 187.4 | 182 |
Intangible assets, net | 63.1 | 76.4 |
Other assets | 64.4 | 39.7 |
Total assets | 1,113.4 | 1,085.1 |
LIABILITIES AND TOTAL EQUITY | ||
Current portion of long-term debt | 6.4 | 5.2 |
Accounts payable | 111.4 | 126.1 |
Employee compensation and benefits | 67.3 | 44 |
Other current liabilities | 88.6 | 86.3 |
Total current liabilities | 273.7 | 261.6 |
Long-term debt | 194.2 | 295.1 |
Long-term operating lease liabilities | 27.4 | 17.1 |
Employee-related benefits | 13.3 | 13.2 |
Deferred income taxes | 5 | 11.5 |
Other liabilities | 21.5 | 14.5 |
Total long-term liabilities | 261.4 | 351.4 |
Total liabilities | 535.1 | 613 |
Commitments and contingencies (Note 16) | ||
Common stock, $0.375 par value per share, 60,000,000 shares authorized; 18,631,384 and 18,521,485 issued and outstanding, respectively | 7 | 7 |
Additional paid-in capital | 64.9 | 56 |
Retained earnings | 547.4 | 458 |
Accumulated other comprehensive loss | (42.3) | (50.2) |
Total Tennant Company shareholders' equity | 577 | 470.8 |
Noncontrolling interest | 1.3 | 1.3 |
Total equity | 578.3 | 472.1 |
Total liabilities and total equity | $ 1,113.4 | $ 1,085.1 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for credit loss | $ 7.2 | $ 6.1 |
Accumulated depreciation | $ 304 | $ 279.3 |
Common stock, par value (in dollars per share) | $ 0.375 | $ 0.375 |
Common stock, shares authorized (in shares) | 60,000,000 | 60,000,000 |
Common stock, shares issued (in shares) | 18,631,384 | 18,631,384 |
Common stock, shares outstanding (in shares) | 18,521,485 | 18,521,485 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
OPERATING ACTIVITIES | |||
Net income | $ 109.5 | $ 66.3 | $ 64.9 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation expense | 36.4 | 32.8 | 33.1 |
Amortization expense | 14.7 | 15.9 | 20 |
Deferred income tax benefit | (26.9) | (15.6) | (15) |
Share-based compensation expense | 11.6 | 7.8 | 9.5 |
Bad debt and returns expense | 3.4 | 2.3 | 1.5 |
Gain on sale of assets | 0 | (3.7) | (9.8) |
Debt extinguishment cost | 0 | 0 | 11.3 |
Other, net | 1.3 | 1 | 2.3 |
Changes in operating assets and liabilities: | |||
Receivables | 4.1 | (46.3) | (20.3) |
Inventories | 14.3 | (68.3) | (56) |
Accounts payable | (15.3) | 7.7 | 19.1 |
Employee compensation and benefits | 22.3 | (14.8) | 8.3 |
Other assets and liabilities | 13 | (10.2) | 0.5 |
Net cash provided by (used in) operating activities | 188.4 | (25.1) | 69.4 |
INVESTING ACTIVITIES | |||
Purchases of property, plant and equipment | (22.8) | (25) | (19.4) |
Investment in leased assets | (1.2) | (4.3) | (3.7) |
Cash received from leased assets | 0.8 | 0.6 | 0 |
Proceeds from sale of assets, net of cash divested | 0 | 4.1 | 24.7 |
Other, net | 0 | 0.1 | (0.1) |
Net cash (used in) provided by investing activities | (23.2) | (24.5) | 1.7 |
FINANCING ACTIVITIES | |||
Proceeds from borrowings | 20 | 52 | 315.8 |
Repayments of borrowings | (120) | (19.1) | (362) |
Debt extinguishment payment | 0 | 0 | (8.4) |
Contingent consideration payments | 0 | 0 | (2.5) |
Change in finance lease obligations | 0.2 | 0 | 0.1 |
Proceeds (repurchases) from exercise of stock options, net of employee tax withholdings obligations | 19 | (0.9) | 5 |
Dividends paid | (20.1) | (18.9) | (17.5) |
Repurchases of common stock | (21.7) | (5) | (15) |
Net cash (used in) provided by financing activities | (122.6) | 8.1 | (84.5) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (2.9) | (4.7) | (4) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 39.7 | (46.2) | (17.4) |
Cash, cash equivalents and restricted cash at beginning of period | 77.4 | 123.6 | 141 |
Cash, cash equivalents and restricted cash at end of period | 117.1 | 77.4 | 123.6 |
SUPPLEMENTAL CASH FLOW INFORMATION | |||
Cash paid for income taxes | 39.5 | 34.1 | 19.5 |
Cash paid for interest | 17.1 | 7.6 | 11.7 |
Supplemental non-cash investing and financing activities: | |||
Capital expenditures in accounts payable | $ 3.5 | $ 4.1 | $ 3.7 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Tennant Company Shareholders' Equity | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interest |
Beginning balance (in shares) at Dec. 31, 2020 | 18,503,805 | ||||||
Beginning balance at Dec. 31, 2020 | $ 406.1 | $ 404.8 | $ 6.9 | $ 54.7 | $ 363.3 | $ (20.1) | $ 1.3 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 64.9 | 64.9 | 64.9 | ||||
Other comprehensive (loss) income | (17.8) | (17.8) | (17.8) | ||||
Issue stock for directors, employee benefit and stock plans, net of related tax withholdings (in shares) | 228,293 | ||||||
Issue stock for directors, employee benefit and stock plans, net of related tax withholdings | 5 | 5 | $ 0.1 | 4.9 | |||
Share-based compensation | 9.5 | 9.5 | 9.5 | ||||
Dividends paid per common share | (17.5) | (17.5) | (17.5) | ||||
Repurchases of common stock (in shares) | (196,982) | ||||||
Repurchases of common stock | (15) | (15) | (15) | ||||
Other | (0.1) | (0.1) | (0.1) | ||||
Ending balance (in shares) at Dec. 31, 2021 | 18,535,116 | ||||||
Ending balance at Dec. 31, 2021 | 435.1 | 433.8 | $ 7 | 54.1 | 410.6 | (37.9) | 1.3 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 66.3 | 66.3 | 66.3 | ||||
Other comprehensive (loss) income | (12.3) | (12.3) | (12.3) | ||||
Issue stock for directors, employee benefit and stock plans, net of related tax withholdings (in shares) | 66,125 | ||||||
Issue stock for directors, employee benefit and stock plans, net of related tax withholdings | (0.9) | (0.9) | (0.9) | ||||
Share-based compensation | 7.8 | 7.8 | 7.8 | ||||
Dividends paid per common share | $ (18.9) | (18.9) | (18.9) | ||||
Repurchases of common stock (in shares) | (79,756) | (79,756) | |||||
Repurchases of common stock | $ (5) | (5) | (5) | ||||
Ending balance (in shares) at Dec. 31, 2022 | 18,521,485 | 18,521,485 | |||||
Ending balance at Dec. 31, 2022 | $ 472.1 | 470.8 | $ 7 | 56 | 458 | (50.2) | 1.3 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 109.5 | 109.5 | 109.5 | ||||
Other comprehensive (loss) income | 7.9 | 7.9 | 7.9 | ||||
Issue stock for directors, employee benefit and stock plans, net of related tax withholdings (in shares) | 400,819 | ||||||
Issue stock for directors, employee benefit and stock plans, net of related tax withholdings | 19 | 19 | 19 | ||||
Share-based compensation | 11.6 | 11.6 | 11.6 | ||||
Dividends paid per common share | $ (20.1) | (20.1) | (20.1) | ||||
Repurchases of common stock (in shares) | (290,920) | (290,920) | |||||
Repurchases of common stock | $ (21.7) | (21.7) | (21.7) | ||||
Ending balance (in shares) at Dec. 31, 2023 | 18,521,485 | 18,631,384 | |||||
Ending balance at Dec. 31, 2023 | $ 578.3 | $ 577 | $ 7 | $ 64.9 | $ 547.4 | $ (42.3) | $ 1.3 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parentheticals) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Shares withheld for taxes (in shares) | 23,622 | 27,653 | 35,061 |
Dividends paid per common share (in dollars per share) | $ 1.075 | $ 1.015 | $ 0.94 |
Operations and Summary of Signi
Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Operations and Summary of Significant Accounting Policies | Operations and Summary of Significant Accounting Policies Nature of Operations – Tennant Company ("the Company", "we", "us", or "our") is a world leader in designing, manufacturing and marketing solutions that empower customers to achieve quality cleaning performance, reduce environmental impact and help create a cleaner, safer, healthier world. The Company is committed to creating and commercializing breakthrough, sustainable cleaning innovations to enhance its broad suite of products, including floor maintenance and cleaning equipment, detergent-free and other sustainable cleaning technologies, aftermarket parts and consumables, equipment maintenance and repair service, and asset management solutions. Our products are used in many types of environments, including retail establishments, distribution centers, factories and warehouses, public venues such as arenas and stadiums, office buildings, schools and universities, hospitals and clinics, and more. Customers include contract cleaners to whom organizations outsource facilities maintenance as well as businesses that perform facilities maintenance themselves. The Company reaches these customers through the industry's largest direct sales and service organization and through a strong and well-supported network of authorized distributors worldwide. Consolidation – The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany transactions and balances have been eliminated. Translation of Non-U.S. Currency – Foreign currency-denominated assets and liabilities have been translated to U.S. dollars at year-end exchange rates, while income and expense items are translated at average exchange rates prevailing during the year. Gains or losses resulting from translation are included as a separate component of accumulated other comprehensive loss. The balance of cumulative foreign currency translation adjustments recorded within accumulated other comprehensive loss as of December 31, 2023, 2022 and 2021 was a net loss of $45.6 million, $53.9 million and $36.0 million, respectively. The majority of translation adjustments are not adjusted for income taxes as substantially all translation adjustments relate to permanent investments in non-U.S. subsidiaries. Net foreign currency transaction losses are included in income before income taxes on the consolidated statements of income. Use of Estimates – The preparation of our consolidated financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires us to make estimates and assumptions that affect the amounts reported in these consolidated financial statements and accompanying notes, disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are used in determining, among other items, sales promotions and incentives accruals, inventory valuation, warranty reserves, allowance for doubtful accounts, pension and postretirement accruals, useful lives for intangible assets, and future cash flows associated with impairment testing for goodwill and other long-lived assets. Actual results could differ from our estimates. Cash and Cash Equivalents – We consider all highly liquid investments with original maturities of three months or less from the date of purchase to be cash equivalents. Restricted Cash – We have a total of $0.2 million as of December 31, 2023 and 2022 that serves as collateral backing certain bank guarantees and is therefore restricted. This money is invested in time deposits. Restricted cash is recorded in cash, cash equivalents and restricted cash on the consolidated balance sheets. Receivables – Credit is granted to our customers in the normal course of business. Receivables are recorded at original carrying value less reserves for estimated uncollectible accounts and sales returns. To assess the collectability of these receivables, we perform ongoing credit evaluations of our customers’ financial condition. Through these evaluations, we may become aware of a situation where a customer may not be able to meet its financial obligations due to deterioration of its financial viability, credit ratings or bankruptcy. The reserve requirements are based on the best facts available to us and are reevaluated and adjusted as additional information becomes available. Our reserves are also based on amounts determined by using percentages applied to trade receivables, using a loss rate method. We considered the following in determining the expected loss rate: (1) historical loss rate, (2) macroeconomic factors, and (3) creditworthiness of customers. The historical loss rate is calculated by taking the yearly write-off expense, net of collections, as a percentage of the annual average balance of trade receivables for each of the past three years. An account is considered past-due or delinquent when it has not been paid within the contractual terms. Uncollectible accounts are written off against the reserves when it is deemed that a customer account is uncollectible. Inventories – Inventories are valued at the lower of cost or net realizable value. Cost is determined on a first-in, first-out (“FIFO”) basis except for inventories in North America, which are determined on a last-in, first-out (“LIFO”) basis. Property, Plant and Equipment – Property, plant and equipment is carried at cost. Additions and improvements that extend the lives of the assets are capitalized, while expenditures for repairs and maintenance are expensed as incurred. We generally depreciate buildings and improvements by the straight-line method over a life of 30 years. Other property, plant and equipment are generally depreciated using the straight-line method based on lives of 3 years to 15 years. Leases – We assess whether an arrangement is a lease at inception. Operating leases with an initial term of 12 months or less are expensed as incurred as short-term lease cost. We have elected the practical expedient to not separate lease and non-lease components for all asset classes. Operating lease assets and operating lease liabilities are calculated based on the present value of the future lease payments over the lease term at the lease commencement date. When future lease payments are based on an index or rate, operating lease assets and operating lease liabilities are calculated using the prevailing index or rate at the lease commencement date. As the implicit rate is not readily determinable, we use our incremental borrowing rate based on the information available at the lease start date in determining the present value of future payments. Information used in determining the incremental borrowing rates for the Company's leases includes: (1) the market yield on the Company's traded bond, adjusted for the presence of collateral and the difference in terms of the bond and the leases, (2) consideration of the currency in which each lease was denominated, and (3) the lease term. The operating lease asset is increased by any lease payments made at or before the lease start date, increased by initial direct costs incurred, and reduced by lease incentives. The lease term includes options to renew or terminate the lease when it is reasonably certain that we will exercise that option. The exercise of lease renewal options is at our sole discretion. The useful life of lease assets and leasehold improvements are limited by the lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Certain leases also include options to purchase the leased asset. Lease expense for operating leases is recognized on a straight-line basis over the lease term. Certain leases contain variable lease payments for items such as index-based changes in rent, fuel and common area maintenance, which we expense as incurred as variable lease cost. Finance leases are not material to our consolidated financial statements. Goodwill – Goodwill represents the excess of cost over the fair value of net assets of businesses acquired and is allocated to our reporting units at the time of the acquisition. We analyze goodwill on an annual basis as of October 1 and when an event occurs or circumstances change that may reduce the fair value of one of our reporting units below its carrying amount. We have the option of first analyzing qualitative factors to determine whether it is more likely than not that the fair value of any reporting unit is less than its carrying amount. However, we may elect to perform a quantitative goodwill impairment test in lieu of the qualitative test. In 2023, we performed a qualitative goodwill test on all reporting units. Our tests indicated that there was no goodwill impairment in any of our reporting units as of our annual assessment date. Intangible Assets – Intangible assets consist of definite lived customer lists, trade names and technology. Generally, intangible assets classified as trade names are amortized on a straight-line basis and intangible assets classified as customer lists or technology are amortized using an accelerated method of amortization. Impairment of Long-Lived Assets and Assets Held for Sale – We periodically review our intangible and long-lived assets for impairment and assess whether events or circumstances indicate that the carrying amount of the assets may not be recoverable. We generally deem an asset group to be impaired if an estimate of undiscounted future operating cash flows is less than its carrying amount. If impaired, an impairment loss is recognized based on the excess of the carrying amount of the individual asset group over its fair value. Assets held for sale are measured at the lower of their carrying value or fair value less costs to sell. Upon retirement or disposition, the asset cost and related accumulated depreciation or amortization are removed from the accounts and a gain or loss is recognized based on the difference between the fair value of proceeds received and carrying value of the assets held for sale. Purchase of Common Stock – We repurchase our common stock under 2016 repurchase program authorized by our Board of Directors. This program allows us to repurchase up to an aggregate of 821,413 shares of our common stock. Upon repurchase, the par value is charged to common stock and the remaining purchase price is charged to additional paid-in capital. If the amount of the remaining purchase price causes the additional paid-in capital account to be in a negative position, this amount is then reclassified to retained earnings. Common stock repurchased is included in shares authorized but is not included in shares outstanding. Warranty – We record a liability for estimated warranty claims at the time of sale. The amount of the liability is based on the trend in the historical ratio of claims to sales, the historical length of time between the sale and resulting warranty claim, new product introductions and other factors. In the event we determine that our current or future product repair and replacement costs exceed our estimates, an adjustment to these reserves would be charged to earnings in the period such determination is made. Warranty terms on machines range from one Pension and Profit Sharing Plans – Substantially all U.S. employees are covered by various retirement benefit plans, including postretirement medical plans and defined contribution savings plans. Retirement benefits for eligible employees in foreign locations are funded principally through defined benefit plans, annuity or government programs. Postretirement Benefits – We accrue and recognize the cost of retiree health benefits over the employees’ period of service based on actuarial estimates. Benefits are only available for U.S. employees hired before January 1, 1999. Derivative Financial Instruments – The Company uses cross-currency swaps, interest rate swaps and foreign exchange forward and option contracts to manage risks generally associated with foreign exchange rate and interest rate volatility. We account for our hedging instruments as either assets or liabilities on the consolidated balance sheets and measure them at fair value. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. Gains and losses for all instruments that do not qualify for hedge accounting are recorded each period to net foreign currency transaction loss in our consolidated statements of income. Changes in the fair value of designated hedges are reported in accumulated other comprehensive loss on the consolidated balance sheet until a related transaction occurs. If the underlying hedged transaction ceases to exist, all changes in fair value of the related derivatives that have not been settled are recorded in our consolidated statements of income. Revenue Recognition – Revenue is recognized when control transfers under the terms of the contract with our customers. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. Sales and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. We do not account for shipping and handling as a distinct performance obligation as we generally perform shipping and handling activities after we transfer control of goods to the customer. We have elected to account for shipping and handling costs associated with outbound freight after control of goods has transferred to a customer as a fulfillment cost. Incidental items that are immaterial in the context of the contract are not recognized as a separate performance obligation. We do not have any significantly extended payment terms as payment is generally received within one year of the point of sale. In general, we transfer control and recognize a sale at the point in time when products are shipped from our manufacturing facilities both direct to consumers and to distributors. Service revenue is recognized in the period the service is performed or ratably over the period of the related service contract. Consideration related to service contracts is deferred if the proceeds are received in advance of the satisfaction of the performance obligations and recognized over the contract period as the performance obligation is met. We use an output method to measure progress toward completion for certain prepaid service contracts, as this method appropriately depicts performance toward satisfaction of the performance obligations. For contracts with multiple performance obligations (i.e., a product and service component), we allocate the transaction price to the performance obligations in proportion to their stand-alone selling prices. We use an observable price to determine the stand-alone selling price for separate performance obligations. When allocating on a relative stand-alone selling price basis, any discounts contained within the contract are allocated proportionately to all of the performance obligations in the contract. We generally expense the incremental costs of obtaining a contract when incurred because the amortization period would be less than one year. These costs relate primarily to sales commissions and are recorded in selling and administrative expense in the consolidated statements of income. We do not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. In addition, we do not adjust the promised amount of consideration for the effects of a significant financing component if we expect, at contract inception, that the period between when we transfer a promised good or service to a customer and when the customer pays for that good or service will be one year or less. Share-Based Compensation – We account for share-based compensation awards on a fair value basis. The estimated grant date fair value of each option award is recognized in income on a straight-line basis over the requisite service period (generally the vesting period). The estimated fair value of each option award is calculated using the Black-Scholes option-pricing model. From time to time, we have elected to modify the terms of the original grant. These modified grants are accounted for as a new award and measured using the fair value method, resulting in the inclusion of additional compensation expense in our consolidated statements of income. Restricted share awards and units are recorded as compensation cost over the requisite service periods based on the market value on the date of grant. To determine the amount of compensation cost to be recognized in each period for these awards and for option awards, we account for forfeitures as they occur. Performance share awards (PSUs) are stock awards where the ultimate number of shares issued will be contingent on the Company’s performance against certain performance goals. The Compensation Committee has the ability to adjust performance goals or modify the manner of measuring or evaluating a performance goal using its discretion. The fair value of each PSU is based on the market value on the date of grant. We recognize expense related to the estimated vesting of our PSUs granted. The estimated vesting of the PSUs is based on the probability of achieving certain performance metrics over the specified performance period. To determine the amount of compensation cost to be recognized in each period, we estimate forfeitures. Research and Development – Research and development costs are expensed as incurred. Advertising Costs – We advertise products, technologies and solutions to customers and prospective customers through a variety of marketing campaign and promotional efforts. These efforts include tradeshows, online advertising, e-mail marketing, mailings, sponsorships and telemarketing. Advertising costs are expensed as incurred. In 2023, 2022 and 2021, such activities amounted to $4.6 million, $4.0 million and $4.6 million, respectively. Income Taxes – Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the book and tax bases of existing assets and liabilities. A valuation allowance is provided when, in management’s judgment, it is more likely than not that some portion or all of the deferred tax asset will not be realized. We have established uncertain tax position accruals using management’s best judgment. We adjust these accruals as facts and circumstances change. Interest expense is recognized in the first period the interest would begin accruing. Penalties are recognized in the period we claim or expect to claim the position in our tax return. Interest and penalty expenses are classified as an income tax expense. Earnings Per Share – Basic earnings per share is computed by dividing net earnings attributable to Tennant Company by the weighted average shares outstanding during the period. Diluted earnings per share assumes conversion of potentially dilutive stock options, performance shares, restricted shares and restricted stock units. These are not included in our computation of diluted earnings per share if we have a net loss attributable to the Company in a reporting period or if the instrument's effects are anti-dilutive. |
Newly Adopted Accounting Pronou
Newly Adopted Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Newly Adopted Accounting Pronouncements | Newly Adopted Accounting Pronouncements Income Taxes In January 2021, we adopted Accounting Standards Update ("ASU") No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The impact of this amended guidance on our consolidated financial statements and related disclosures was immaterial. Defined Benefit Plans In December 2022 , we adopted ASU No. 2018-14 , Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans, which updates disclosure requirements for defined benefit pension and other postretirement plans. Adoption of this ASU did not have a material impact on our consolidated financial statements. Reference Rate Reform In March 2020 , the Financial Accounting Standards Board ("FASB") issued ASU No. 2020-04 , Reference Rate Reform (Topic 848 ). This ASU provides optional expedients to applying generally accepted accounting principles to certain contract modifications, hedging relationships, and other transactions affected by the reference rate reform, which affects the London Inter-bank Offered Rate ("LIBOR"), if certain criteria are met. The amendments were effective March 12, 2020 through December 31, 2022. There has been no material impact to our financial condition, results of operations, or cash flows from reference rate reform as of December 31, 2022. See Note 9 for information on the replacement of LIBOR with the Secured Overnight Financing Rate ("SOFR") in our Credit Agreements (defined below) on November 17, 2022. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products and services. Generally, these criteria are met at the time the product is shipped. We also enter into contracts that can include combinations of products and services, which are generally capable of being distinct and are accounted for as separate performance obligations. Revenue is recognized net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities. Disaggregation of Revenue The following tables illustrate the disaggregation of revenue by geographic area, groups of similar products and services and sales channels for the years ended December 31: Net sales by geographic area 2023 2022 2021 Americas $ 840.3 $ 705.9 $ 658.3 Europe, Middle East and Africa (EMEA) 314.4 301.6 331.9 Asia Pacific (APAC) 88.9 84.7 100.6 Total $ 1,243.6 $ 1,092.2 $ 1,090.8 Net sales are attributed to each geographic area based on the end user country and are net of intercompany sales. Net sales by groups of similar products and services 2023 2022 2021 Equipment $ 776.4 $ 664.0 $ 679.9 Parts and consumables 279.5 263.1 249.3 Specialty surface coatings (a) — — 1.5 Service and other 187.7 165.1 160.1 Total $ 1,243.6 $ 1,092.2 $ 1,090.8 (a) On February 1, 2021, we sold our Coatings business. Further details regarding the sale are discussed in Note 5. Net sales by sales channel 2023 2022 2021 Sales direct to consumer $ 854.4 $ 712.6 $ 692.4 Sales to distributors 389.2 379.6 398.4 Total $ 1,243.6 $ 1,092.2 $ 1,090.8 Contract Liabilities Sales Returns The right of return may exist explicitly or implicitly with our customers. When the right of return exists, we adjust the transaction price for the estimated effect of returns. We estimate the expected returns using the expected value method by assessing historical sales levels and the timing and magnitude of historical sales return levels as a percent of sales and projecting this experience into the future. Sales Incentives Our sales contracts may contain various customer incentives, such as volume-based rebates or other promotions. We reduce the transaction price for certain customer programs and incentive offerings that represent variable consideration. Sales incentives given to our customers are recorded using the most likely amount approach for estimating the amount of consideration to which the Company will be entitled. We forecast the most likely amount of the incentive to be paid at the time of sale, update this forecast quarterly, and adjust the transaction price accordingly to reflect the new amount of incentives expected to be earned by the customer. A majority of our customer incentives are settled within one year. We record our accruals for volume-based rebates and other promotions in other current liabilities on our consolidated balance sheets. The change in our sales incentive accrual balance for the years ended December 31, 2023 and 2022 was as follows: 2023 2022 Beginning balance $ 20.0 $ 19.9 Additions to sales incentive accrual 29.5 22.5 Contract payments (28.5) (21.8) Foreign currency fluctuations 0.2 (0.6) Ending balance $ 21.2 $ 20.0 Deferred Revenue We sell separately priced prepaid contracts to our customers where we receive payment at the inception of the contract and defer recognition of the consideration received because we have to satisfy future performance obligations. Our deferred revenue balance is primarily attributed to prepaid maintenance contracts on our machines ranging from 12 months to 60 months. In circumstances where prepaid contracts are sold simultaneously with machines, we use an observable price to determine stand-alone selling price for separate performance obligations. The change in the deferred revenue balance for the years ended December 31, 2023 and 2022 was as follows: 2023 2022 Beginning balance $ 9.3 $ 11.2 Increase in deferred revenue representing our obligation to satisfy future performance obligations 21.7 24.2 Decrease in deferred revenue for amounts recognized in net sales for satisfied performance obligations (20.8) (25.5) Foreign currency fluctuations 0.1 (0.6) Ending balance $ 10.3 $ 9.3 As of December 31, 2023, $7.9 million and $2.4 million of deferred revenue was reported in other current liabilities and other liabilities, respectively, on our consolidated balance sheets. Of this, we expect to recognize the following approximate amounts in net sales in the following periods: 2024 $ 7.9 2025 1.2 2026 0.7 2027 0.3 2028 0.1 Thereafter 0.1 Total $ 10.3 As of December 31, 2022, $6.6 million and $2.7 million of deferred revenue was reported in other current liabilities and other liabilities, respectively, on our consolidated balance sheets. |
Management Actions
Management Actions | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Management Actions | Management Actions Restructuring Actions In 2023 and 2022, we incurred restructuring expenses as part of our ongoing global reorganization efforts. The following pre-tax restructuring charges were included in the consolidated statements of income: 2023 2022 Severance-related costs - Selling and administrative expense $ 1.9 $ 2.2 Severance-related costs - Cost of sales 0.7 — Other costs - Selling and administrative expense (a) 0.3 1.6 Other costs - Cost of sales (a) — 0.3 Total pre-tax restructuring costs $ 2.9 $ 4.1 (a) Includes facility exit costs associated with facility moves. The charges in 2023 impacted the Europe, Middle East (EMEA) and Asia Pacific (APAC) operating segments. The charges in 2022 impacted all operating segments. Our restructuring actions represent the continued execution of a multi-year enterprise strategy to drive increased productivity throughout our operations. A reconciliation to the ending liability balance of severance and related costs as of December 31, 2023 is as follows: 2023 2022 Beginning balance $ 1.7 $ 4.9 New charges 3.2 2.2 Cash payments (1.9) (2.9) Foreign currency adjustments — (0.5) Adjustment to accrual (0.6) (2.0) Ending balance $ 2.4 $ 1.7 |
Acquisition and Divestitures
Acquisition and Divestitures | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisition and Divestitures | Acquisitions and Divestitures Sale of Building During the second quarter of 2022, we sold a building located in Golden Valley, Minnesota. The resulting pre-tax gain was $3.7 million and is reflected within gain on sale of assets in the consolidated statements of income. Proceeds from sale of assets were $4.1 million. Sale of Coatings Business During the first quarter of 2021, we sold the Coatings business. The resulting pre-tax gain was $9.8 million and is reflected within gain on sale of business in the consolidated statements of income. Proceeds from sale of business, net of cash divested, were $24.7 million. Acquisition of Gaomei On January 4, 2019 , we completed the acquisition of Hefei Gaomei Cleaning Machines Co., Ltd. and Anhui Rongen Environmental Protection Technology Co., Ltd. (collectively "Gaomei"), privately held designers and manufacturers of commercial cleaning solutions based in China. The financial results for Gaomei have been included in the consolidated financial results since the date of closing. The total purchase price included $22.4 million of payments and related adjustments paid in 2019 and contingent consideration payments totaling $2.5 million paid in 2021. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories as of December 31 consisted of the following: 2023 2022 Inventories carried at LIFO: Finished goods (a) $ 74.7 $ 85.0 Raw materials and work-in-process 38.5 46.4 Excess of FIFO over LIFO cost (b) (47.7) (49.7) Total LIFO inventories $ 65.5 $ 81.7 Inventories carried at FIFO: Finished goods (a) $ 52.8 $ 68.9 Raw materials and work-in-process 57.6 56.0 Total FIFO inventories $ 110.4 $ 124.9 Total inventories $ 175.9 $ 206.6 (a) Finished goods include machines, parts and consumables and component parts that are used in our products. (b) The difference between replacement cost and the stated LIFO inventory value is not materially different from the reserve for the LIFO valuation method. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment and related accumulated depreciation, including equipment under finance leases, as of December 31, consisted of the following: 2023 2022 Property, plant and equipment: Land $ 21.0 $ 22.0 Buildings and improvements 137.6 149.0 Machinery and manufacturing equipment 209.5 171.1 Office equipment 116.0 107.7 Construction in progress 7.6 9.4 Total property, plant and equipment 491.7 459.2 Less: accumulated depreciation (304.0) (279.3) Property, plant and equipment, net $ 187.7 $ 179.9 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets For purposes of performing our goodwill impairment analysis, we have identified our reporting units as North America, Latin America, EMEA and APAC. In 2021, the Coatings reporting unit was sold and is no longer considered a reporting unit. We have the option of first analyzing qualitative factors to determine whether it is more likely than not that the fair value of any reporting unit is less than its carrying amount. We may elect to perform a quantitative goodwill impairment test in lieu of the qualitative test, and in 2023 we performed the qualitative goodwill test on all reporting units. In 2022, we elected to perform the quantitative goodwill test on all reporting units. Based on our analysis, we determined that there was no impairment of goodwill as of December 31, 2023 and 2022. The changes in the carrying amount of goodwill are as follows: Goodwill Accumulated Impairment Losses Total Balance as of December 31, 2023 $ 220.7 $ (33.3) $ 187.4 Foreign currency fluctuations 1.9 3.5 5.4 Balance as of December 31, 2022 $ 218.8 $ (36.8) $ 182.0 Foreign currency fluctuations (15.1) 4.0 (11.1) Balance as of December 31, 2021 $ 233.9 $ (40.8) $ 193.1 The balances of acquired intangible assets, excluding goodwill, are as follows: Customer Trade Names Technology Total Balance as of December 31, 2023 Original cost $ 150.6 $ 29.3 $ 16.3 $ 196.2 Accumulated amortization (100.8) (19.2) (13.1) (133.1) Carrying amount $ 49.8 $ 10.1 $ 3.2 $ 63.1 Weighted-average original life (in years) 15 11 11 Balance as of December 31, 2022 Original cost $ 146.6 $ 28.6 $ 15.9 $ 191.1 Accumulated amortization (87.5) (15.9) (11.3) (114.7) Carrying amount $ 59.1 $ 12.7 $ 4.6 $ 76.4 Weighted-average original life (in years) 15 11 11 In 2021, we divested identified intangible assets, excluding goodwill, with a carrying value of $0.9 million and $1.4 million in the categories of customer lists and trade names, respectively, as a result of the sale of the Coatings business discussed in Note 5. Amortization expense of intangible assets was $14.7 million, $15.9 million and $20.0 million for the years ended December 31, 2023, 2022 and 2021, respectively. Estimated aggregate amortization expense based on the current carrying amount of amortizable intangible assets for each of the five succeeding years is as follows: 2024 $ 13.4 2025 12.0 2026 10.7 2027 7.3 2028 5.6 Thereafter 14.1 Total $ 63.1 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt 2021 Credit Agreement On April 5, 2021, we and certain of our foreign subsidiaries entered into an Amended and Restated Credit Agreement (the “2021 Credit Agreement”) with JPMorgan Chase Bank, N.A. as administrative agent. The 2021 Credit Agreement provides us and certain of our foreign subsidiaries access to a senior secured credit facility until April 3, 2026, consisting of a term loan facility in an amount up to $100.0 million and a revolving facility in an amount up to $450.0 million with an option to expand the credit facility by up to $275.0 million, with the consent of the lenders willing to provide additional borrowings in the form of increases to their revolving facility commitment or funding of incremental term loans. Borrowings may be denominated in U.S. dollars or certain other currencies. The fee for committed funds under the revolving facility of the 2021 Credit Agreement ranges from an annual rate of 0.15% to 0.30%, depending on our leverage ratio. On November 10, 2022, Tennant Company further amended the 2021 Credit Agreement (the "Amendment") to update the benchmark provisions to replace LIBOR with Term SOFR (as defined in the Amendment) as the reference rate for purposes of calculating interest under the 2021 Credit Agreement. Pursuant to the Amendment, borrowings denominated in U.S. dollars bear interest at a rate per annum equal to (a) the Term SOFR Rate (as defined in the Amendment) plus a credit spread adjustment of 0.10% per annum, but in any case, not less than 0%, plus an additional spread of 1.10% to 1.70%, depending on the Company’s leverage ratio, or (b) the Alternate Base Rate (as defined in the Amendment), which is the greatest of (i) the prime rate, (ii) the federal funds rate plus 0.50% and (iii) the adjusted Term SOFR Rate for a one month period, but in any case, not less than 1.0%, plus, in any such case, 1.0%, plus an additional spread of 0.10% to 0.70%, depending on the Company’s leverage ratio. All other material terms included in the 2021 Credit Agreement remain unchanged as a result of the Amendment. In connection with the 2021 Credit Agreement, we reaffirmed our security interest in favor of the lenders in substantially all our personal property and pledged the stock of our domestic subsidiaries and 65% of the stock of our first-tier foreign subsidiaries. The obligations under the 2021 Credit Agreement are also guaranteed by certain of our first-tier domestic subsidiaries, and those subsidiaries also provided a security interest in their similar personal property. Our 2021 Credit Agreement restricts the payment of dividends or repurchasing of stock requiring that, after giving effect to such payments, no default exists or would result from such payment. Additionally, cash dividends are restricted to $7.5 million per quarter, and approved levels of other restricted payments range from $60.0 million to unlimited based on our net leverage ratio (not taking into account any acquisition holiday) after giving effect to such payment. The 2021 Credit Agreement contains customary representations, warranties and covenants, including but not limited to covenants restricting our ability to incur indebtedness and liens and merge or consolidate with another entity. Further, the 2021 Credit Agreement contains the following covenants: • a covenant requiring us to maintain an indebtedness to EBITDA ratio, determined as of the end of each of our fiscal quarters, of no greater than 3.50 to 1.00, with certain alternative requirements for permitted acquisitions greater than $50.0 million; • a covenant requiring us to maintain an EBITDA to interest expense ratio for a period of four consecutive fiscal quarters as of the end of each quarter of no less than 3.00 to 1; and • a covenant restricting us from paying dividends or repurchasing stock if, after giving effect to such payments and assuming no default exists or would result from such payment, our leverage ratio is greater than 2.50 to 1, in such case limiting such payments to $60.0 million during any fiscal year. Redemption of Senior Notes In the second quarter of 2021, the Company redeemed $300.0 million principal amount outstanding of its 5.625% Senior Notes due 2025 ("Senior Notes"). We used the proceeds from the borrowings under the 2021 Credit Agreement to retire our Senior Notes and pay the $8.4 million call premium due upon redemption in the second quarter of 2021. In addition, we wrote off $2.9 million of unamortized debt issuance costs in the second quarter of 2021. Debt outstanding as of December 31 consisted of the following: 2023 2022 Credit facility borrowings: Revolving credit facility borrowings $ 110.0 $ 205.0 Term loan facility borrowings 90.0 95.0 Finance lease liabilities 0.6 0.3 Total debt 200.6 300.3 Less: current portion of long-term debt (a) (6.4) (5.2) Long-term debt $ 194.2 $ 295.1 (a) As of December 31, 2023, the Company is required to repay $6.3 million in outstanding credit facility borrowings and $0.1 million of current maturities of finance lease liabilities over the next 12 months. As of December 31, 2023, we had outstanding borrowings of $90.0 million and $110.0 million under our term loan facility and revolving facility, respectively. We had letters of credit and bank guarantees outstanding in the amount of $3.2 million, leaving approximately $336.8 million of unused borrowing capacity on our revolving facility. Commitment fees on unused lines of credit for the year ended December 31, 2023 were $0.5 million. The overall weighted average cost of debt is approximately 6.5% and net of a related cross-currency swap instrument is approximately 5.0%. Further details regarding the cross-currency swap instrument are discussed in Note 11. The aggregate maturities of our outstanding debt, excluding unamortized debt issuance costs, as of December 31, 2023, are as follows: 2024 $ 6.4 2025 9.2 2026 185.0 2027 — 2028 — Thereafter — Total aggregate maturities $ 200.6 |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Other Current Liabilities | Other Current Liabilities Other current liabilities as of December 31 consisted of the following: 2023 2022 Other current liabilities: Taxes $ 11.3 $ 11.1 Warranty reserve 7.4 7.8 Deferred revenue 7.9 6.6 Customer sales incentives 21.3 20.0 Freight 3.9 6.4 Restructuring 2.4 1.7 Operating leases 14.4 15.0 Miscellaneous accrued expenses 20.0 17.7 Total other current liabilities $ 88.6 $ 86.3 |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives Hedge Accounting and Hedging Programs We recognize all derivative instruments as either assets or liabilities in our consolidated balance sheets and measure them at fair value. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. To receive hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge. We evaluate hedge effectiveness on our hedges that are designated and qualify for hedge accounting at the inception of the hedge prospectively, as well as retrospectively, and record any ineffective portion of the hedging instruments in net foreign currency transaction loss on our consolidated statements of income. The time value of purchased contracts is recorded in net foreign currency transaction loss in our consolidated statements of income. If we do not elect hedge accounting, or the contract does not qualify for hedge accounting treatment, the changes in fair value from period to period are recorded in net foreign currency transaction losses in our consolidated statements of income. Our hedging policy establishes maximum limits for each counterparty to mitigate any concentration of risk. Balance Sheet Hedges We hedge our net recognized foreign currency denominated assets and liabilities with foreign exchange forward contracts to reduce the risk that the value of these assets and liabilities will be adversely affected by changes in exchange rates. These contracts hedge assets and liabilities that are denominated in foreign currencies and are carried at fair value as either assets or liabilities on the consolidated balance sheets with changes in the fair value recorded to net foreign currency transaction gain in our consolidated statements of income. These contracts do not subject us to material balance sheet risk due to exchange rate movements because gains and losses on these derivatives are intended to offset gains and losses on the assets and liabilities being hedged. At December 31, 2023 and December 31, 2022, the notional amounts of foreign currency forward exchange contracts outstanding not designated as hedging instruments were $73.0 million and $83.7 million, respectively. Cash Flow Hedges We use foreign currency exchange rate derivatives to hedge our exposure to fluctuations in exchange rates for anticipated intercompany cash transactions between Tennant Company and its subsidiaries. We enter into these foreign exchange cross-currency swaps to hedge the foreign currency denominated cash flows associated with this intercompany loan, and accordingly, they are not speculative in nature. These cross-currency swaps are designated as cash flow hedges. The loan and related swaps matured in April 2022. The Company manages its floating rate debt exposure using interest rate swaps. Fixed rate swaps are used to reduce the Company's risk of the possibility of increased interest costs. The Company entered into an aggregate $120.0 million notional amount of interest rate swaps effective December 1, 2022, that exchange a variable rate of interest for a fixed rate of interest of 4.076%. These interest rate swaps are designated as cash flow hedges. These swaps are scheduled to mature on December 1, 2026. Fair Value Hedges On April 5, 2022, we entered into Euro to U.S. dollar foreign exchange cross-currency swaps associated with an intercompany loan from a wholly owned European subsidiary. We enter into these foreign exchange cross-currency swaps to hedge the foreign currency risk associated with this intercompany loan, and accordingly, they are not speculative in nature. These cross-currency swaps are designated as fair value hedges. As of December 31, 2023, these cross-currency swaps included €75.0 million of total notional value. As of December 31, 2023, the aggregated scheduled interest payments over the course of the loan and related swaps amounted to €7.5 million. The scheduled maturity and principal payment of the loan and related interest payments of €82.5 million are due in April 2027. Net Investment Hedges On April 5, 2022, we entered into Euro to U.S. dollar foreign exchange cross-currency swaps to hedge our exposure to adverse foreign currency exchange rate movements between Tennant Company and a wholly owned European subsidiary. We enter into these fixed-to-fixed cross-currency swap agreements to protect a designated monetary amount of the Company’s net investment in its Euro functional currency subsidiary against the risk of changes in the Euro to U.S. dollar foreign exchange rate. These cross-currency swaps are designated as net investment hedges. As of December 31, 2023, the cross-currency swaps included €75.0 million of total notional values. These swaps are scheduled to mature in April 2027. The fair value of derivative instruments on our consolidated balance sheets as of December 31 consisted of the following: Derivative Assets Derivative Liabilities Balance Sheet Location December 31, 2023 December 31, 2022 Balance Sheet Location December 31, 2023 December 31, 2022 Derivatives designated as cash flow hedges: Interest rate swaps Other current assets 0.8 0.8 Other current liabilities — Interest rate swaps Other assets — — Other liabilities 1.9 1.8 Derivatives designated as fair value hedges: Cross-currency swaps Other current assets 1.3 1.4 Other current liabilities — Cross-currency swaps Other assets — 0.8 Other liabilities 3.3 — Derivatives designated as net investment hedges: Cross-currency swaps Other current assets 1.2 1.2 Other current liabilities — Cross-currency swaps Other assets — 0.5 Other liabilities 3.4 — Derivatives not designated as hedging instruments: Foreign currency forward contracts (a) Other current assets — 0.1 Other current liabilities 1.6 0.3 (a) Contracts that mature within the next 12 months are included in other current assets and other current liabilities for asset derivatives and liabilities derivatives, respectively, on our consolidated balance sheets. Contracts with maturities greater than 12 months are included in other assets and other liabilities for asset derivatives and liability derivatives, respectively, in our consolidated balance sheets. Amounts included in our consolidated balance sheets are recorded net where a right of offset exists with the same derivative counterparty. As of December 31, 2023, we anticipate reclassifying approximately $3.0 million of gains from accumulated other comprehensive loss to net income during the next 12 months. The following tables include the amounts in the consolidated statements of income in which the effects of derivative instruments are recorded and the effects of derivative instruments activity on these line items for the years ended December 31, 2023 and December 31, 2022: 2023 2022 Total Amount of Gain (Loss) on Cash Flow Total Amount of Gain (Loss) on Cash Flow Derivatives designated as cash flow hedges: Net sales $ 1,243.6 $ — $ 1,092.2 $ — Interest expense, net (13.5) 0.9 (7.1) 0.7 Net foreign currency transaction loss 0.3 — (1.2) 4.7 Derivatives designated as fair value hedges: Interest expense, net (13.5) 1.1 (7.1) 0.9 Net foreign currency transaction loss (gain) 0.3 (1.9) (1.2) 2.0 Derivatives designated as net investment hedges: Interest expense, net (13.5) 1.0 (7.1) 0.7 The effect of derivative instruments designated as hedges and derivative instruments not designated as hedges in our consolidated statements of income for the three years ended December 31 were as follows: 2023 2022 2021 Derivatives designated as cash flow hedges: Net gain (loss) recognized in other comprehensive (loss) income, net of tax (a) $ 0.6 $ 3.1 $ 10.8 Net loss reclassified from accumulated other comprehensive loss into income, net of tax, effective portion to net sales — — (0.3) Net gain reclassified from accumulated other comprehensive loss into income, net of tax, effective portion to interest income 2.0 0.5 1.9 Net gain (loss) reclassified from accumulated other comprehensive loss into income, net of tax, effective portion to net foreign currency transaction losses — 3.6 9.7 Derivatives designated as fair value hedges: Net gain recognized in other comprehensive loss, net of tax — 2.7 — Net gain reclassified from accumulated other comprehensive loss into income, net of tax, effective portion to interest expense, net — 0.9 — Derivatives designated as net investment hedges: Net gain recognized in other comprehensive loss, net of tax 2.0 4.2 — Net gain reclassified from accumulated other comprehensive loss into income, net of tax, effective portion to interest expense, net 1.0 0.7 — Derivatives not designated as hedging instruments: Net gain (loss) recognized in income (b) $ 1.7 $ 1.0 $ 2.5 (a) Net change in the fair value of the effective portion classified in other comprehensive (loss) income. (b) Classified in net foreign currency transaction losses. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Estimates of fair value for financial assets and financial liabilities are based on the framework established in the accounting guidance for fair value measurements. The framework defines fair value, provides guidance for measuring fair value and requires certain disclosures. The framework discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow) and the cost approach (cost to replace the service capacity of an asset or replacement cost). The framework utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels: • Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. • Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. • Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions. Our population of assets and liabilities subject to fair value measurements as of December 31, 2023 were as follows: Fair Value Level 1 Level 2 Level 3 Assets: Cross-currency swaps $ 2.5 $ — $ 2.5 $ — Interest rate swaps 0.8 — 0.8 — Total assets 3.3 — 3.3 — Liabilities: Foreign currency forward exchange contracts 1.6 — 1.6 — Cross-currency swaps 6.7 — 6.7 — Interest rate swaps 1.9 — 1.9 — Total liabilities $ 10.2 $ — $ 10.2 $ — Our population of assets and liabilities subject to fair value measurements as of December 31, 2022 were as follows: Fair Value Level 1 Level 2 Level 3 Assets: Foreign currency forward exchange contracts $ 0.1 $ — $ 0.1 $ — Cross-currency swaps 3.9 — 3.9 — Interest rate swaps 0.8 — 0.8 — Total assets 4.8 — 4.8 — Liabilities: Foreign currency forward exchange contracts 0.3 — 0.3 — Interest rate swaps 1.8 — 1.8 $ — Total liabilities $ 2.1 $ — $ 2.1 $ — Our foreign currency forward exchange contracts, cross-currency swaps and interest rate swaps are valued using observable Level 2 market expectations at the measurement date and standard valuation techniques to convert future amounts to a single present value amount. Further details regarding our foreign currency forward exchange and option contracts are discussed in Note 11. Contingent consideration is valued using a probability-weighted analysis of projected gross profit and integration milestones. Contingent consideration payments totaling $2.5 million were paid in 2021. The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, restricted cash, receivables, other current assets, accounts payable and other current liabilities approximate fair value due to their short-term nature. |
Retirement Benefit Plans
Retirement Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Retirement Benefit Plans | Retirement Benefit Plans Substantially all U.S. employees are covered by various retirement benefit plans, including defined contribution savings plans and postretirement medical plans. Retirement benefits for eligible employees in foreign locations are funded principally through defined benefit plans, annuity or government programs. The total cost of benefits for our plans was $16.6 million, $11.6 million and $14.8 million in 2023, 2022 and 2021, respectively. We had a qualified, funded defined benefit retirement plan (the “U.S. Pension Plan”) covering certain current and retired employees in the U.S. During 2015, the plan was amended to freeze benefits for all participants effective January 31, 2017. On February 15, 2017, the Board of Directors approved the termination of the U.S. Pension Plan, effective May 15, 2017. Participants who elected an immediate lump sum distribution were paid out in December 2017. Assets for participants who elected or are currently receiving annuity payments and those who have elected to defer their benefits were transferred to the annuity company, Pacific Life, in December 2017. Excess assets were transferred from the Tennant Company Pension Trust to the Tennant Company Retirement Savings Plan to deliver future discretionary benefits to plan participants. During 2022, all remaining excess assets were utilized, and none remained outstanding as of December 31, 2022. We have a U.S. postretirement medical benefit plan (the “U.S. Retiree Plan”) to provide certain healthcare benefits for U.S. employees hired before January 1, 1999. Eligibility for those benefits is based upon a combination of years of service with us and age upon retirement. Our defined contribution savings plan (“401(k) plan”) covers substantially all U.S. employees. Under this plan, we match up to 3% of the employee’s annual compensation in cash to be invested per their election. We also make a profit sharing contribution to the 401(k) plan for employees with more than one year of service in accordance with our Profit Sharing Plan. This contribution is based upon our financial performance and can be funded in the form of Tennant stock, cash or a combination of both. Expenses for the 401(k) plan were $10.5 million, $6.0 million and $8.7 million during 2023, 2022 and 2021, respectively. We have a U.S. nonqualified supplemental benefit plan (the “U.S. Nonqualified Plan”) to provide additional retirement benefits for certain employees whose benefits under our 401(k) plan or U.S. Pension Plan are limited by either the Employee Retirement Income Security Act or the Internal Revenue Code. We also have defined benefit pension plans in the United Kingdom, Germany, France and Italy (the “U.K. Pension Plan”, the “German Pension Plan,” "French Pension Plan" and the "Italian Pension Plan"). The U.K. Pension Plan, French Pension Plan, German Pension Plan and Italian Pension Plan cover certain current and retired employees and all plans are closed to new participants. In December 2018, the U.K. Pension Plan was amended to close all future accrual of benefits to existing active members, resulting in a curtailment gain of $0.1 million relating to past service benefits. The Italian Plan is an employee termination indemnity mandated by Italian law to all employees employed prior to 2008. Benefits are paid out when employees covered under the plan are terminated for any reason. Due to changes in Italian law, such termination indemnities are no longer available to new participants. Prior year Non-U.S. Pension Benefits disclosures have been updated to include the Italian Pension Plan. We expect to contribute less than $0.1 million to our U.S. Nonqualified Plan and $0.6 million to our U.S. Retiree Plan in 2024. We expect contributions to our U.K. Pension Plan, German Pension Plan, French Pension Plan and Italian Pension Plans to be $0.2 million in 2024. Weighted-average asset allocations by asset category of the U.K. Pension Plan as of December 31, 2023 are as follows: Quoted Prices in Active Markets for Significant Observable Inputs Significant Unobservable Inputs Asset category Fair Value (Level 1) (Level 2) (Level 3) Investment account held by pension plan (a) $ 12.7 $ — $ — $ 12.7 Total $ 12.7 $ — $ — $ 12.7 (a) This category is comprised of investments in insurance contracts. Weighted-average asset allocations by asset category of the U.K. Pension Plan as of December 31, 2022 are as follows: Quoted Prices in Active Markets for Significant Observable Inputs Significant Unobservable Inputs Asset category Fair Value (Level 1) (Level 2) (Level 3) Investment account held by pension plan (a) $ 11.3 — — $ 11.3 Total $ 11.3 $ — $ — $ 11.3 (a) This category is comprised of investments in insurance contracts. Estimates of the fair value of the U.K. Pension Plan and the Tennant Company Retirement Savings Plan assets are based on the framework established in the accounting guidance for fair value measurements. A brief description of the three levels can be found in Note 12. The Investment Account held by the U.K. Pension Plan invests in insurance contracts for purposes of funding the U.K. Pension Plan and is classified as Level 3. The fair value of the Investment Account is the cash surrender values as determined by the provider which are the amounts the plan would receive if the contracts were cashed out at year-end. The underlying assets held by these contracts are primarily invested in assets traded in active markets. A reconciliation of the beginning and ending balances of the Level 3 investments of our U.K. Pension Plan during the years ended December 31 is as follows: 2023 2022 Fair value at beginning of year $ 11.3 $ 12.9 Purchases, sales, issuances and settlements, net (0.3) (0.3) Net (loss) gain 1.1 0.1 Foreign currency 0.6 (1.4) Fair value at end of year $ 12.7 $ 11.3 The primary objective of our U.K. Pension Plan is to meet retirement income commitments to plan participants at a reasonable cost to us and to maintain a sound actuarially funded status. This objective is accomplished through growth of capital and safety of funds invested. Assets are invested in securities to achieve growth of capital over inflation through appreciation and accumulation and reinvestment of dividend and interest income. Investments are diversified to control risk. The U.K. Pension Plan is invested in insurance contracts with underlying investments primarily in equity and fixed income securities. Our German Pension Plan is unfunded, which is customary in that country. Weighted-average assumptions used to determine benefit obligations as of December 31 are as follows: U.S. Nonqualified Plan Non-U.S. Postretirement 2023 2022 2023 2022 2023 2022 Discount rate 5.07 % 5.37 % 4.26 % 1.05 % 5.06 % 5.37 % Rate of compensation increase — % — % 3.00 % 2.25 % — % — % Weighted-average assumptions used to determine net periodic benefit costs as of December 31 are as follows: U.S. Nonqualified Plan Non-U.S. Postretirement 2023 2022 2021 2023 2022 2021 2023 2022 2021 Discount rate 5.37 % 2.54 % 2.06 % 4.68 % 1.55 % 1.05 % 5.37 % 2.53 % 2.07 % Expected long-term rate of return on plan assets — % — % — % 6.10 % 3.20 % 2.70 % — % — % — % Rate of compensation increase — % — % — % 2.25 % 1.50 % — % — % — % — % The discount rate is used to discount future benefit obligations back to today’s dollars. Our discount rates were determined based on high-quality fixed income investments. The resulting discount rates are consistent with the duration of plan liabilities. The Mercer Above Mean Yield Curve for high-quality corporate bonds is used in determining the discount rate for the U.S. Nonqualified Plan in 2023. The Mercer Yield Curve is used in determining the discount rate for the Non-U.S. Plans in 2023. Before 2019, the FTSE (formerly known as Citigroup) Above Median Spot rates for high-quality corporate bonds were used in determining the discount rate for the U.S. Plans. Before 2021, the iBoxx € Corporates AA 7-10 and iBoxx € Corporates AA 10+ Benchmark was used to determine the discount rate for the Italian Pension Plan. The expected return on assets assumption on the investment portfolios for the pension plans is based on the long-term expected returns for the investment mix of assets currently in the portfolio. Management uses historic return trends of the asset portfolio combined with recent market conditions to estimate the future rate of return. The accumulated benefit obligations as of December 31 for all defined benefit plans are as follows: 2023 2022 U.S. Nonqualified Plan $ 0.9 $ 0.9 U.K. Pension Plan 6.2 6.5 German Pension Plan 1.0 0.7 French Pension Plan 0.4 0.5 Italian Pension Plan 2.5 2.4 Information for our plans with an accumulated benefit obligation in excess of plan assets as of December 31 is as follows: 2023 2022 Accumulated benefit obligation $ 4.8 $ 4.5 Fair value of plan assets — — As of December 31, 2023 and 2022, the U.S. Nonqualified, the German Pension, the French Pension and the Italian Pension Plans had an accumulated benefit obligation in excess of plan assets. Information for our plans with a projected benefit obligation in excess of plan assets as of December 31 is as follows: 2023 2022 Projected benefit obligation $ 5.0 $ 4.7 Fair value of plan assets — — As of December 31, 2023 and 2022, the U.S. Nonqualified, the German Pension, the French Pension and the Italian Pension Plans had a projected benefit obligation in excess of plan assets. Assumed healthcare cost trend rates as of December 31 are as follows: 2023 2022 Healthcare cost trend rate assumption for the next year Pre-65 8.00 % 5.30 % Healthcare cost trend rate assumption for the next year Post-65 8.80 % 5.80 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.00 % 4.00 % Year that the rate reaches the ultimate trend rate 2047 2045 Summaries related to changes in benefit obligations and plan assets and to the funded status of our defined benefit and postretirement medical benefit plans are as follows: U.S. Nonqualified Plan Non-U.S. Postretirement 2023 2022 2023 2022 2023 2022 Change in benefit obligation: Benefit obligation at beginning of year $ 0.9 $ 1.1 $ 10.3 $ 16.2 $ 5.4 $ 7.0 Plan combinations — — — 1.0 — — Service cost — — 0.1 0.3 — — Interest cost — — 0.5 0.2 0.3 0.2 Actuarial (gain) loss 0.1 (0.1) (0.3) (5.1) (0.7) (1.1) Foreign exchange — — 0.5 (1.6) — — Settlement — — — — — — Benefits paid (0.1) (0.1) (0.7) (0.7) (0.4) (0.7) Benefit obligation at end of year $ 0.9 $ 0.9 $ 10.4 $ 10.3 $ 4.6 $ 5.4 Change in fair value of plan assets and net accrued liabilities: Fair value of plan assets at beginning of year $ — $ — $ 11.3 $ 12.9 $ — $ — Actual return on plan assets — — 1.1 0.1 — — Employer contributions 0.1 0.1 0.3 0.4 0.4 0.7 Foreign exchange — — 0.6 (1.4) — — Settlement — — — — — — Benefits paid (0.1) (0.1) (0.6) (0.7) (0.4) (0.7) Fair value of plan assets at end of year — — 12.7 11.3 — — Funded status at end of year $ (0.9) $ (0.9) $ 2.3 $ 1.0 $ (4.6) $ (5.4) Amounts recognized in the consolidated balance sheets consist of: Noncurrent other assets $ — $ — $ 6.5 $ 4.8 $ — $ — Current liabilities (0.1) (0.1) (0.3) (0.2) (0.6) (0.7) Long-term liabilities (0.8) (0.8) (3.9) (3.6) (4.0) (4.7) Net accrued liability $ (0.9) $ (0.9) $ 2.3 $ 1.0 $ (4.6) $ (5.4) Amounts recognized in accumulated other comprehensive loss consist of: Prior service cost $ — $ — $ (0.1) $ (0.1) $ — $ — Net actuarial (loss) gain (0.7) (0.7) 3.6 2.8 1.8 1.3 Accumulated other comprehensive (loss) income $ (0.7) $ (0.7) $ 3.5 $ 2.7 $ 1.8 $ 1.3 The components of the net periodic benefit cost (credit) for the three years ended December 31 were as follows: U.S. Nonqualified Plan Non-U.S. Postretirement 2023 2022 2021 2023 2022 2021 2023 2022 2021 Service cost $ — $ — $ — $ 0.1 $ 0.3 $ — $ — $ — $ 0.1 Interest cost — — 0.1 0.5 0.2 0.2 0.3 0.2 0.1 Expected return on plan assets — — — (0.7) (0.4) (0.4) — — — Amortization of net actuarial loss 0.1 0.1 — (0.1) — 0.1 (0.2) — — Net periodic benefit cost (credit) $ 0.1 $ 0.1 $ 0.1 $ (0.2) $ 0.1 $ (0.1) $ 0.1 $ 0.2 $ 0.2 The changes in accumulated other comprehensive loss for the three years ended December 31 were as follows: U.S. Nonqualified Plan Non-U.S. Postretirement 2023 2022 2021 2023 2022 2021 2023 2022 2021 Prior service cost $ — $ — $ — $ — $ — $ — $ — $ — $ — Net actuarial (gain) loss 0.1 (0.1) — (0.9) (5.0) 0.2 (0.7) (1.1) 0.6 Amortization of net actuarial (loss) gain (0.1) (0.1) — 0.1 — (0.1) 0.2 — — Total recognized in other comprehensive (income) loss $ — $ (0.2) $ — $ (0.8) $ (5.0) $ 0.1 $ (0.5) $ (1.1) $ 0.6 Total recognized in net benefit (credit) cost and other comprehensive (income) loss $ 0.1 $ (0.1) $ 0.1 $ (1.0) $ (4.9) $ — $ (0.4) $ (0.9) $ 0.8 The following benefit payments, which reflect expected future service, are expected to be paid: U.S. Non-U.S. Postretirement 2024 $ 0.1 $ 0.6 $ 0.6 2025 0.1 0.6 0.5 2026 0.1 0.6 0.5 2027 0.1 0.6 0.5 2028 0.1 0.6 0.5 2028 to 2031 0.3 3.7 2.0 Total $ 0.8 $ 6.7 $ 4.6 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders' Equity Authorized Shares We are authorized to issue an aggregate of 60,000,000 shares, all of which are designated as Common Stock having a par value of $0.375 per share. The Board of Directors is authorized to establish one or more series of preferred stock, setting forth the designation of each such series, and fixing the relative rights and preferences of each such series. Accumulated Other Comprehensive Loss The changes in components of accumulated other comprehensive loss, net of tax, are as follows: Foreign Currency Translation Pension and Postretirement Derivative Financial Instruments Total December 31, 2021 $ (36.0) $ (2.1) $ 0.2 $ (37.9) Other comprehensive (loss) income before reclassifications (17.2) 4.8 5.8 (6.6) Amounts reclassified from accumulated other comprehensive loss (0.7) — (5.0) (5.7) Net current period other comprehensive (loss) income (17.9) 4.8 0.8 (12.3) December 31, 2022 $ (53.9) $ 2.7 $ 1.0 $ (50.2) Other comprehensive (loss) income before reclassifications 9.3 1.0 0.6 10.9 Amounts reclassified from accumulated other comprehensive loss (1.0) — (2.0) (3.0) Net current period other comprehensive (loss) income 8.3 1.0 (1.4) 7.9 December 31, 2023 $ (45.6) $ 3.7 $ (0.4) $ (42.3) Accumulated other comprehensive loss associated with pension and postretirement benefits and cash flow hedges is included in Notes 13 and 11, respectively. Repurchase of Common Stock On October 31, 2016, the Board of Directors authorized the repurchase of 1,000,000 shares of our common stock. During the year ended December 31, 2023, the Company paid $21.7 million to repurchase 290,920 shares of its common stock at an average price of $74.57 per share. As of December 31, 2023, 821,413 shares were available to be repurchased. The Company paid $5.0 million to repurchase 79,756 share repurchases during the year ended December 31, 2022. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases We lease facilities, vehicles and equipment under the operating lease agreements, which include both monthly and longer-term arrangements. Certain operating leases for vehicles contain residual value guarantee provisions, which would become due at the expiration of the operating lease agreement if the fair value of the leased vehicles is less than the guaranteed residual value. As of December 31, 2023, of those leases that contain residual value guarantees, the aggregate residual value at lease expiration was $14.6 million, of which we have guaranteed $8.1 million. The lease assets and liabilities as of December 31 are as follows: Leases Classification 2023 2022 Assets Operating lease assets Operating lease assets $ 41.7 $ 31.8 Finance lease assets Property, plant and equipment (a) 0.6 0.2 Total leased assets $ 42.3 $ 32.0 Liabilities Current: Operating Other current liabilities $ 14.4 $ 15.0 Finance Current portion of long-term debt 0.1 — Noncurrent: Operating Long-term operating lease liabilities 27.4 17.1 Finance Long-term debt 0.5 0.1 Total lease liabilities $ 42.4 $ 32.2 (a) Finance lease assets are recorded net of accumulated amortization of $0.1 million and less than $0.1 million as of December 31, 2023 and December 31, 2022, respectively. The lease cost for the three years ended December 31 was as follows: Lease Cost 2023 2022 2021 Operating lease cost (a) $ 28.9 $ 26.2 $ 26.6 Finance lease cost (b) 0.1 0.1 0.1 Total lease cost $ 29.0 $ 26.3 $ 26.7 (a) Includes short-term lease costs of $5.9 million and $4.8 million and variable lease costs of $4.2 million and $3.3 million for the years ended December 31, 2023 and December 31, 2022, respectively. (b) Includes amortization of leased assets and interest on lease liabilities. The maturity of lease liabilities as of December 31, 2023 was as follows: Maturity of Lease Liabilities Operating Leases Finance Leases Total 2024 $ 16.0 $ 0.2 $ 16.2 2025 11.6 0.2 11.8 2026 8.2 0.1 8.3 2027 4.6 0.1 4.7 2028 3.3 0.1 3.4 Thereafter 3.0 — 3.0 Total lease payments $ 46.7 $ 0.7 $ 47.4 Less: Interest (4.9) (0.1) (5.0) Present value of lease liabilities $ 41.8 $ 0.6 $ 42.4 The lease term and discount rate as of December 31 were as follows: Lease Term and Discount Rate 2023 2022 Weighted-average remaining lease term (years): Operating leases 3.8 2.9 Finance leases 4.7 4.1 Weighted-average discount rate: Operating leases 6.0% 3.9% Finance leases 6.0% 2.5% Other information related to cash paid related to lease liabilities and lease assets obtained for the years ended December 31 was as follows: Other Information 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 18.9 $ 18.2 Financing cash flows from finance leases 0.1 0.1 Lease assets obtained in exchange for new finance lease liabilities 0.7 0.3 Lease assets obtained in exchange for new operating lease liabilities 18.8 11.4 |
Leases | Leases We lease facilities, vehicles and equipment under the operating lease agreements, which include both monthly and longer-term arrangements. Certain operating leases for vehicles contain residual value guarantee provisions, which would become due at the expiration of the operating lease agreement if the fair value of the leased vehicles is less than the guaranteed residual value. As of December 31, 2023, of those leases that contain residual value guarantees, the aggregate residual value at lease expiration was $14.6 million, of which we have guaranteed $8.1 million. The lease assets and liabilities as of December 31 are as follows: Leases Classification 2023 2022 Assets Operating lease assets Operating lease assets $ 41.7 $ 31.8 Finance lease assets Property, plant and equipment (a) 0.6 0.2 Total leased assets $ 42.3 $ 32.0 Liabilities Current: Operating Other current liabilities $ 14.4 $ 15.0 Finance Current portion of long-term debt 0.1 — Noncurrent: Operating Long-term operating lease liabilities 27.4 17.1 Finance Long-term debt 0.5 0.1 Total lease liabilities $ 42.4 $ 32.2 (a) Finance lease assets are recorded net of accumulated amortization of $0.1 million and less than $0.1 million as of December 31, 2023 and December 31, 2022, respectively. The lease cost for the three years ended December 31 was as follows: Lease Cost 2023 2022 2021 Operating lease cost (a) $ 28.9 $ 26.2 $ 26.6 Finance lease cost (b) 0.1 0.1 0.1 Total lease cost $ 29.0 $ 26.3 $ 26.7 (a) Includes short-term lease costs of $5.9 million and $4.8 million and variable lease costs of $4.2 million and $3.3 million for the years ended December 31, 2023 and December 31, 2022, respectively. (b) Includes amortization of leased assets and interest on lease liabilities. The maturity of lease liabilities as of December 31, 2023 was as follows: Maturity of Lease Liabilities Operating Leases Finance Leases Total 2024 $ 16.0 $ 0.2 $ 16.2 2025 11.6 0.2 11.8 2026 8.2 0.1 8.3 2027 4.6 0.1 4.7 2028 3.3 0.1 3.4 Thereafter 3.0 — 3.0 Total lease payments $ 46.7 $ 0.7 $ 47.4 Less: Interest (4.9) (0.1) (5.0) Present value of lease liabilities $ 41.8 $ 0.6 $ 42.4 The lease term and discount rate as of December 31 were as follows: Lease Term and Discount Rate 2023 2022 Weighted-average remaining lease term (years): Operating leases 3.8 2.9 Finance leases 4.7 4.1 Weighted-average discount rate: Operating leases 6.0% 3.9% Finance leases 6.0% 2.5% Other information related to cash paid related to lease liabilities and lease assets obtained for the years ended December 31 was as follows: Other Information 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 18.9 $ 18.2 Financing cash flows from finance leases 0.1 0.1 Lease assets obtained in exchange for new finance lease liabilities 0.7 0.3 Lease assets obtained in exchange for new operating lease liabilities 18.8 11.4 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In the ordinary course of business, we may become liable with respect to pending and threatened litigation, tax, environmental and other matters. While the ultimate results of current claims, investigations and lawsuits involving us are unknown at this time, we do not expect that these matters will have a material adverse effect on our consolidated financial position or results of operations. Legal costs associated with such matters are expensed as incurred. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income before income taxes for the three years ended December 31 was as follows: 2023 2022 2021 U.S. operations $ 94.2 $ 58.9 $ 47.5 Foreign operations 29.6 20.6 26.6 Total $ 123.8 $ 79.5 $ 74.1 Income tax expense (benefit) for the three years ended December 31 was as follows: 2023 2022 2021 Current: Federal $ 28.7 $ 17.1 $ 11.1 Foreign 8.5 7.9 11.2 State 4.0 3.8 1.9 Total current $ 41.2 $ 28.8 $ 24.2 Deferred: Federal $ (8.7) $ (6.3) $ 0.6 Foreign (17.3) (8.5) (15.5) State (0.9) (0.8) (0.1) Total deferred $ (26.9) $ (15.6) $ (15.0) Total: Federal $ 20.0 $ 10.8 $ 11.7 Foreign (8.8) (0.6) (4.3) State 3.1 3.0 1.8 Total income tax expense $ 14.3 $ 13.2 $ 9.2 In general, it is our practice and intention to permanently reinvest the earnings of our foreign subsidiaries and repatriate earnings only when the tax impact is zero or immaterial. Accordingly, no deferred taxes have been provided for withholding taxes or other taxes that would result upon repatriation of our approximately $102.5 million of undistributed earnings from foreign subsidiaries to the United States as those earnings continue to be permanently reinvested. In December 2021, the Organization for Economic Cooperation and Development (OECD), which is an international public policy setting organization comprised of member countries including the U.S., published a proposal for the establishment of a global minimum tax rate of 15% (the "Pillar Two rule"). The OECD has recommended that the Pillar Two rule become effective for fiscal years beginning on or after January 1, 2024. To date member states are in various stages of implementing the rules through local legislation and the OECD continues to refine technical guidance. We are closely monitoring developments of the Pillar Two rule and are currently evaluating the potential effect in each of the countries we operate in. We do not expect this rule to have a material impact on our consolidated financial statements. Our effective income tax rate varied from the U.S. federal statutory tax rate for the three years ended December 31 as follows: 2023 2022 2021 Tax at statutory rate 21.0 % 21.0 % 21.0 % Increases (decreases) in the tax rate from: State and local taxes, net of federal benefit 2.4 2.4 2.2 Effect of foreign operations (10.9) (4.9) (6.3) Effect of changes in valuation allowances (0.2) (1.2) (4.5) Excess tax benefits on share-based compensation 1.0 1.1 1.8 Share-based payments 0.1 (0.4) (0.9) Research and development credit (1.3) (1.5) (1.4) Other, net (0.5) 0.1 0.6 Effective income tax rate 11.6 % 16.6 % 12.5 % The effect of foreign operations line item includes (12.0%) and (7.2%) benefits for 2023 and 2022, respectively, associated with reductions to deferred tax liabilities on undistributed foreign earnings as those cumulative earnings were reduced by current year statutory book losses. Deferred tax assets and liabilities were comprised of the following as of December 31: 2023 2022 Deferred tax assets: Inventory $ 3.8 $ 4.1 Compensation and employee benefits 13.2 11.4 Warranty reserves 2.4 2.3 Allowance for doubtful accounts and deferred revenue 2.7 2.3 Operating lease liabilities 9.0 5.9 Tax loss carryforwards 6.9 8.0 Tax credit carryforwards 3.7 3.6 Capitalized research and development costs 12.3 6.6 Goodwill and intangible assets 4.5 — Other 1.2 (0.9) Gross deferred tax assets $ 59.7 $ 43.3 Less: valuation allowance (3.2) (3.3) Total net deferred tax assets $ 56.5 $ 40.0 Deferred tax liabilities: Operating lease assets $ 9.5 $ 6.1 Fixed assets 9.5 11.2 Goodwill and intangible assets — 13.8 Total deferred tax liabilities $ 19.0 $ 31.1 Net deferred tax assets $ 37.5 $ 8.9 Tax credit carryforwards consist of $3.0 million of U.S. federal and state tax credits and $1.3 million of Netherlands tax credits. We have non-U.S. cumulative tax losses of $26.0 million in various countries ($6.9 million tax effected). Cumulative losses can be used to offset the income tax liabilities on future income in these countries. Of these losses, $26.0 million have unlimited carryforward periods. Less than $0.1 million of these losses have a limited carryforward period. The valuation allowance as of December 31, 2023 principally applies to tax credit carryforwards in the Netherlands and certain U.S. states which, in the opinion of management, are more likely than not to expire unutilized. However, to the extent that tax benefits related to these carryforwards are realized in the future, the reduction in the valuation allowance will reduce income tax expense. As of December 31, 2023, we believe it is more likely than not that the remainder of our deferred tax assets are realizable. We recorded a net valuation allowance release in 2023 of $0.1 million on the basis of management’s reassessment of the amount of its deferred tax assets that are more likely than not to be realized. The net decrease in the valuation allowance was primarily driven by a change in judgment regarding the expected utilization of tax credit carryovers in the U.S. and the Netherlands. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2023 2022 Beginning balance $ 4.2 $ 4.7 (Decreases) as a result of tax positions taken during a prior period — (0.1) Increases as a result of tax positions taken during the current year 1.2 0.8 Decreases relating to settlement with tax authorities (0.2) — Decreases as a result of a lapse of the applicable statute of limitations (1.1) (1.0) Decreases as a result of foreign currency fluctuations — (0.2) Ending balance $ 4.1 $ 4.2 Included in the balance of unrecognized tax benefits as of December 31, 2023 and 2022 are potential benefits of $3.7 million and $3.9 million, respectively, that if recognized, would affect the effective tax rate. We recognize potential accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense. In addition to the liability of $4.1 million and $4.2 million for unrecognized tax benefits as of December 31, 2023 and 2022, there was approximately $0.5 million and $0.6 million, respectively, for accrued interest and penalties. To the extent interest and penalties are not assessed with respect to uncertain tax positions, the amounts accrued will be revised and reflected as an adjustment to income tax expense. We and our subsidiaries are subject to U.S. federal income tax as well as income tax of numerous state and foreign jurisdictions. We are generally no longer subject to U.S. federal tax examinations for taxable years before 2018. The number of years which remain open for audit for U.S. state or foreign tax purposes varies by jurisdiction but generally ranges from 3-5 years. We are currently undergoing income tax examinations in various foreign jurisdictions. Although the final outcome of these examinations cannot be currently determined, we believe that we have adequate reserves with respect to these examinations. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation We have five plans under which we have awarded share-based compensation grants: The 1997 Non-Employee Directors Option Plan ("1997 Plan"), which provided for stock option grants to our non-employee Directors, the 2007 Stock Incentive Plan (“2007 Plan”), the Amended and Restated 2010 Stock Incentive Plan, as Amended (“2010 Plan”), the 2017 Stock Incentive Plan ("2017 Plan") and the 2020 Stock Incentive Plan ("2020 Plan"). As of December 31, 2023, there were 1,111,646 shares reserved for issuance under the 2007 Plan, the 2010 Plan and the 2017 Plan for outstanding compensation awards. There were 975,475 shares available for issuance under the 2020 Plan for current and future equity awards as of December 31, 2023. The Compensation Committee of the Board of Directors determines the number of shares awarded and the grant date, subject to the terms of our equity award policy. We recognized total share-based compensation expense of $11.6 million, $7.8 million and $9.5 million, respectively, during the years ended 2023, 2022 and 2021. The total excess tax benefit recognized for share-based compensation arrangements during the years ended 2023, 2022 and 2021 was $0.1 million, $0.3 million and $0.7 million, respectively. Stock Option Awards We determined the fair value of our stock option awards using the Black-Scholes valuation model that uses the assumptions noted in the table below. The expected term selected for stock options granted during the year represents the period of time that the stock options are expected to be outstanding based on historical data of stock option holder exercise and termination behavior of similar grants. The risk-free interest rate for periods within the contractual life of the stock option is based on the U.S. Treasury rate over the expected life at the time of grant. Expected volatilities are based upon historical volatility of our stock over a period equal to the expected life of each stock option grant. Dividend yield is estimated over the expected life based on our dividend policy and historical dividends paid. To determine the amount of compensation cost to be recognized in each period, we account for forfeitures as they occur. The following table illustrates the valuation assumptions used for the 2023, 2022 and 2021 grants: 2023 2022 2021 Expected volatility 35 % 34 % 34 - 35% Weighted-average expected volatility 35 % 34 % 35 % Expected dividend yield 1.6 % 1.2 % 1.3 - 1.4% Weighted-average expected dividend yield 1.6 % 1.2 % 1.4 % Expected term, in years 5 5 5 Risk-free interest rate 4.2 - 4.2% 1.9 - 1.9% 0.8 - 0.9% New stock option awards granted vest one-third each year over a three year period and have a ten year contractual term. Compensation expense equal to the grant date fair value is recognized for these awards on a straight-line basis over the awards' vesting period. Stock options granted to employees are subject to accelerated expensing if the option holder meets the retirement definition set forth in the 2020, 2017 and 2010 Plans. The following table summarizes the activity during the year ended December 31, 2023 for stock option awards: Shares Weighted-Average Exercise Outstanding at beginning of year 931,843 $ 66.97 Granted 60,492 72.88 Exercised (338,787) 61.17 Forfeited (10,667) 75.76 Expired (450) 71.70 Outstanding at end of year 642,431 $ 70.43 Exercisable at end of year 534,335 $ 69.33 The weighted-average grant date fair value of stock options granted during the years ended December 31, 2023, 2022 and 2021 was $24.21, $23.45 and $22.01, respectively. The total intrinsic value of stock options exercised during the years ended December 31, 2023, 2022 and 2021 was $5.9 million, $0.4 million and $3.9 million, respectively. The aggregate intrinsic value of options outstanding and exercisable at December 31, 2023 was $14.3 million and $12.5 million, respectively. The weighted-average remaining contractual life for options outstanding and exercisable as of December 31, 2023 was 5.1 years and 4.3 years, respectively. As of December 31, 2023, there was unrecognized compensation cost for nonvested options of $1.5 million, which is expected to be recognized over a weighted-average period of 1.3 years. Restricted Share Awards Restricted share awards for employees generally have a three year vesting period from the effective date of the grant. Restricted share awards to non-employee directors vest upon a change of control or upon termination of service as a director occurring at least six months after grant date of the award so long as termination is for one of the following reasons: death; disability; retirement in accordance with Tennant policy (e.g., age, term limits, etc.); resignation at request of Board (other than for gross misconduct); resignation following at least six months’ advance notice; failure to be renominated (unless due to unwillingness to serve) or reelected by shareholders; or removal by shareholders. We use the closing share price the day before the grant date to determine the fair value of our restricted share awards. Expenses for these awards are recognized over the vesting period. The following table summarizes the activity during the year ended December 31, 2023 for nonvested restricted share awards: Shares Weighted-Average Grant Date Fair Nonvested at beginning of year 75,412 $ 62.94 Granted 20,094 72.88 Vested (5,667) 78.57 Forfeited (4,873) 76.48 Nonvested at end of year 84,966 $ 63.48 The total fair value of restricted shares vested during the years ended December 31, 2023, 2022 and 2021 was $0.4 million, $1.7 million and $1.2 million, respectively. As of December 31, 2023, there was $1.5 million of total unrecognized compensation cost related to nonvested restricted shares which is expected to be recognized over a weighted-average period of 1.7 years. Performance Share Awards We grant performance share awards to key employees as a part of our long-term management compensation program. These awards are earned based upon achievement of certain financial performance targets over a three year period. The number of shares of common stock a participant receives will be increased (up to 200 percent of target levels) or reduced (down to zero) based on the level of achievement of the financial performance targets. We use the closing share price the day before the grant date to determine the fair value of our performance share awards. Expenses on these awards are recognized over a three year performance period. Performance shares are granted in restricted stock units. They are payable in stock and vest solely upon achievement of certain financial performance targets during this three year period. The following table summarizes the activity during the year ended December 31, 2023 for nonvested performance share awards: Shares Weighted-Average Grant Date Fair Nonvested at beginning of year 134,763 $ 78.29 Granted 67,396 73.12 Vested (32,130) 77.27 Forfeited (16,881) 76.45 Nonvested at end of year 153,148 $ 76.44 During the year ended December 31, 2022, 43,198 performance shares vested. There were 43,621 performance shares vested during the year ended December 31, 2021. As of December 31, 2023, we expect to recognize $7.8 million of total compensation costs over a weighted-average period of 1.8 years. Restricted Stock Units We grant restricted stock units to employees and non-employee directors, which generally vest within three years from the date of the grant. Vested restricted stock units are paid out in stock. We use the closing share price the day before the grant date to determine the fair value of our restricted stock units. Expenses on these awards are recognized on a straight-line basis over the vesting period of the award. The following table summarizes the activity during the year ended December 31, 2023 for nonvested restricted stock units: Shares Weighted-Average Grant Date Fair Nonvested at beginning of year 114,704 $ 73.55 Granted 59,034 77.59 Vested (38,303) 78.54 Forfeited (6,216) 74.15 Nonvested at end of year 129,219 $ 73.89 The total fair value of shares vested during the years ended December 31, 2023, 2022 and 2021 was $3.0 million, $0.5 million and $3.2 million, respectively. As of December 31, 2023, there was $3.8 million of total unrecognized compensation cost related to nonvested shares which is expected to be recognized over a weighted-average period of 1.5 years. Share-Based Liabilities As of December 31, 2023 and 2022, we had $0.4 million and $0.3 million in total share-based liabilities recorded on our consolidated balance sheets, respectively. |
Income Attributable to Tennant
Income Attributable to Tennant Company Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Income Attributable to Tennant Company Per Share | Income Attributable to Tennant Company Per Share The computations of basic and diluted earnings attributable to Tennant Company per share for the years ended December 31 were as follows: 2023 2022 2021 Numerator: Net income $ 109.5 $ 66.3 $ 64.9 Denominator: Basic - weighted average shares outstanding 18,509,523 18,494,356 18,499,674 Effect of dilutive securities 274,110 202,899 349,543 Diluted - weighted average shares outstanding 18,783,633 18,697,255 18,849,217 Basic earnings per share $ 5.92 $ 3.58 $ 3.51 Diluted earnings per share $ 5.83 $ 3.55 $ 3.44 Excluded from the dilutive securities shown above were options to purchase and shares to be paid out under share-based compensation plans of 249,690, 649,054 and 171,273 shares of common stock during 2023, 2022 and 2021, respectively. These exclusions were made if the exercise prices of these options are greater than the average market price of our common stock for the period, if the number of shares we can repurchase under the treasury stock method exceeds the weighted shares outstanding in the options or if we have a net loss, as these effects are anti-dilutive. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting We are organized into four operating segments: North America; Latin America; Europe, Middle East, Africa; and Asia Pacific. We combine our North America and Latin America operating segments into the "Americas" for reporting net sales by geographic area. In accordance with the objective and basic principles of the applicable accounting guidance, we aggregate our operating segments into one reportable segment that consists of the design, manufacture and sale of products used primarily in the maintenance of nonresidential surfaces. The following table presents net sales by geographic area for the three years ended December 31: 2023 2022 2021 Net Sales: United States $ 726.8 $ 618.8 $ 566.4 Other Americas 113.5 87.1 91.9 Americas 840.3 705.9 658.3 Europe, Middle East, Africa 314.4 301.6 331.9 Asia Pacific 88.9 84.7 100.6 Total $ 1,243.6 $ 1,092.2 $ 1,090.8 Accounting policies of the operations in various operating segments are the same as those described in Note 1. Net sales are attributed to each operating segment based on the end user country and are net of intercompany sales. Apart from the United States shown in the table above, there were no individual foreign locations which had net sales which represented more than 10% of our consolidated net sales. No single customer represents more than 10% of our consolidated net sales. The following table presents long-lived assets by geographic area as of December 31: 2023 2022 2021 Long-lived assets: United States $ 104.2 $ 105.9 $ 106.6 Other Americas 31.9 26.4 18.8 Americas 136.1 132.3 125.4 Italy 218.0 223.5 280.4 Other Europe, Middle East, Africa 75.6 69.6 36.2 Europe, Middle East, Africa 293.6 293.1 316.6 Asia Pacific 30.4 32.1 35.8 Total $ 460.1 $ 457.5 $ 477.8 Long-lived assets consist of property, plant and equipment, goodwill, intangible assets and certain other assets. Apart from the United States and Italy shown in the table above, there are no other individual foreign locations which have long-lived assets which represent more than 10% of our consolidated long-lived assets. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn February 21, 2024, we entered into an agreement to acquire a non-controlling preferred equity share investment in Brain Corp., a privately held autonomous technology company in San Diego, California. The investment will drive the development and adoption of the next generation of robotic and AI technologies. The purchase of the investment was completed on February 21, 2024 for $32.1 million. The Company is currently evaluating the accounting treatment and financial statement impact of the investment. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II - Valuation and Qualifying Accounts (In millions) 2023 2022 2021 Allowance for doubtful accounts: Balance at beginning of year $ 6.1 $ 5.3 $ 4.6 Charged to costs and expenses 4.4 1.9 1.5 Reclassification — — — Charged to other accounts (a) — 0.1 0.3 Deductions (b) (3.3) (1.2) (1.1) Balance at end of year $ 7.2 $ 6.1 $ 5.3 Sales returns reserve: Balance at beginning of year $ 1.4 $ 1.0 $ 1.0 Charged to costs and expenses 2.0 0.9 0.1 Deductions (b) (1.5) (0.5) (0.1) Balance at end of year $ 1.9 $ 1.4 $ 1.0 Allowance for excess and obsolete inventories: Balance at beginning of year $ 14.2 $ 14.3 $ 13.6 Charged to costs and expenses 8.9 0.5 1.7 Charged to other accounts (a) 0.1 0.2 (0.3) Deductions (c) (6.0) (0.8) (0.7) Balance at end of year $ 17.2 $ 14.2 $ 14.3 Valuation allowance for deferred tax assets: Balance at beginning of year $ 3.3 $ 4.8 $ 7.5 Charged to costs and expenses (0.3) (1.4) (2.6) Charged to other accounts (a) 0.2 (0.1) (0.1) Balance at end of year $ 3.2 $ 3.3 $ 4.8 Warranty reserve: Balance at beginning of year $ 10.9 $ 10.4 $ 11.1 Charged to costs and expenses 12.2 9.9 8.5 Charged to other accounts (a) (0.1) (0.1) (0.2) Deductions (d) (11.8) (9.3) (9.0) Balance at end of year $ 11.2 $ 10.9 $ 10.4 (a) Primarily includes impact from foreign currency fluctuations. (b) Includes accounts determined to be uncollectible and charged against reserves, net of collections on accounts previously charged against reserves. (c) Includes inventory identified as excess, slow moving or obsolete and charged against reserves. (d) Includes warranty claims charged against reserves. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net income | $ 109.5 | $ 66.3 | $ 64.9 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 12 Months Ended |
Dec. 31, 2023 shares | Dec. 31, 2023 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Donal L. Mulligan [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On November 20, 2023, Donal L. Mulligan, Board of Directors, adopted a Rule 10b5-1 trading arrangement that is intended to satisfy the affirmative defense of Rule 10b5-1(c) for the sale of up to 2,358 shares of the Company’s common stock until April 30, 2025. | |
Name | Donal L. Mulligan | |
Title | Board of Directors | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | November 20, 2023 | |
Arrangement Duration | 527 days | |
Aggregate Available | 2,358 | 2,358 |
Operations and Summary of Sig_2
Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Consolidation | Consolidation – The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany transactions and balances have been eliminated. |
Translation of Non-U.S. Currency | Translation of Non-U.S. Currency – Foreign currency-denominated assets and liabilities have been translated to U.S. dollars at year-end exchange rates, while income and expense items are translated at average exchange rates prevailing during the year. Gains or losses resulting from translation are included as a separate component of accumulated other comprehensive loss. The balance of cumulative foreign currency translation adjustments recorded within accumulated other comprehensive loss as of December 31, 2023, 2022 and 2021 was a net loss of $45.6 million, $53.9 million and $36.0 million, respectively. The majority of translation adjustments are not adjusted for income taxes as substantially all translation adjustments relate to permanent investments in non-U.S. subsidiaries. Net foreign currency transaction losses are included in income before income taxes on the consolidated statements of income. |
Use of Estimates | Use of Estimates – The preparation of our consolidated financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires us to make estimates and assumptions that affect the amounts reported in these consolidated financial statements and accompanying notes, disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are used in determining, among other items, sales promotions and incentives accruals, inventory valuation, warranty reserves, allowance for doubtful accounts, pension and postretirement accruals, useful lives for intangible assets, and future cash flows associated with impairment testing for goodwill and other long-lived assets. Actual results could differ from our estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents – We consider all highly liquid investments with original maturities of three months or less from the date of purchase to be cash equivalents. |
Restricted Cash | Restricted Cash |
Receivables | Receivables – Credit is granted to our customers in the normal course of business. Receivables are recorded at original carrying value less reserves for estimated uncollectible accounts and sales returns. To assess the collectability of these receivables, we perform ongoing credit evaluations of our customers’ financial condition. Through these evaluations, we may become aware of a situation where a customer may not be able to meet its financial obligations due to deterioration of its financial viability, credit ratings or bankruptcy. The reserve requirements are based on the best facts available to us and are reevaluated and adjusted as additional information becomes available. Our reserves are also based on amounts determined by using percentages applied to trade receivables, using a loss rate method. We considered the following in determining the expected loss rate: (1) historical loss rate, (2) macroeconomic factors, and (3) creditworthiness of customers. The historical loss rate is calculated by taking the yearly write-off expense, net of collections, as a percentage of the annual average balance of trade receivables for each of the past three years. An account is considered past-due or delinquent when it has not been paid within the contractual terms. Uncollectible accounts are written off against the reserves when it is deemed that a customer account is uncollectible. |
Inventories | Inventories – Inventories are valued at the lower of cost or net realizable value. Cost is determined on a first-in, first-out (“FIFO”) basis except for inventories in North America, which are determined on a last-in, first-out (“LIFO”) basis. |
Property, Plant and Equipment | Property, Plant and Equipment – Property, plant and equipment is carried at cost. Additions and improvements that extend the lives of the assets are capitalized, while expenditures for repairs and maintenance are expensed as incurred. We generally depreciate buildings and improvements by the straight-line method over a life of 30 years. Other property, plant and equipment are generally depreciated using the straight-line method based on lives of 3 years to 15 years. |
Leases | Leases – We assess whether an arrangement is a lease at inception. Operating leases with an initial term of 12 months or less are expensed as incurred as short-term lease cost. We have elected the practical expedient to not separate lease and non-lease components for all asset classes. Operating lease assets and operating lease liabilities are calculated based on the present value of the future lease payments over the lease term at the lease commencement date. When future lease payments are based on an index or rate, operating lease assets and operating lease liabilities are calculated using the prevailing index or rate at the lease commencement date. As the implicit rate is not readily determinable, we use our incremental borrowing rate based on the information available at the lease start date in determining the present value of future payments. Information used in determining the incremental borrowing rates for the Company's leases includes: (1) the market yield on the Company's traded bond, adjusted for the presence of collateral and the difference in terms of the bond and the leases, (2) consideration of the currency in which each lease was denominated, and (3) the lease term. The operating lease asset is increased by any lease payments made at or before the lease start date, increased by initial direct costs incurred, and reduced by lease incentives. The lease term includes options to renew or terminate the lease when it is reasonably certain that we will exercise that option. The exercise of lease renewal options is at our sole discretion. The useful life of lease assets and leasehold improvements are limited by the lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Certain leases also include options to purchase the leased asset. Lease expense for operating leases is recognized on a straight-line basis over the lease term. Certain leases contain variable lease payments for items such as index-based changes in rent, fuel and common area maintenance, which we expense as incurred as variable lease cost. Finance leases are not material to our consolidated financial statements. |
Goodwill | Goodwill – Goodwill represents the excess of cost over the fair value of net assets of businesses acquired and is allocated to our reporting units at the time of the acquisition. We analyze goodwill on an annual basis as of October 1 and when an event occurs or circumstances change that may reduce the fair value of one of our reporting units below its carrying amount. We have the option of first analyzing qualitative factors to determine whether it is more likely than not that the fair value of any reporting unit is less than its carrying amount. However, we may elect to perform a quantitative goodwill impairment test in lieu of the qualitative test. In 2023, we performed a qualitative goodwill test on all reporting units. Our tests indicated that there was no goodwill impairment in any of our reporting units as of our annual assessment date. |
Intangible Assets | Intangible Assets – Intangible assets consist of definite lived customer lists, trade names and technology. Generally, intangible assets classified as trade names are amortized on a straight-line basis and intangible assets classified as customer lists or technology are amortized using an accelerated method of amortization. |
Impairment of Long-Lived Assets and Assets Held for Sale | Impairment of Long-Lived Assets and Assets Held for Sale – We periodically review our intangible and long-lived assets for impairment and assess whether events or circumstances indicate that the carrying amount of the assets may not be recoverable. We generally deem an asset group to be impaired if an estimate of undiscounted future operating cash flows is less than its carrying amount. If impaired, an impairment loss is recognized based on the excess of the carrying amount of the individual asset group over its fair value. Assets held for sale are measured at the lower of their carrying value or fair value less costs to sell. Upon retirement or disposition, the asset cost and related accumulated depreciation or amortization are removed from the accounts and a gain or loss is recognized based on the difference between the fair value of proceeds received and carrying value of the assets held for sale. |
Purchase of Common Stock | Purchase of Common Stock – We repurchase our common stock under 2016 repurchase program authorized by our Board of Directors. This program allows us to repurchase up to an aggregate of 821,413 shares of our common stock. Upon repurchase, the par value is charged to common stock and the remaining purchase price is charged to additional paid-in capital. If the amount of the remaining purchase price causes the additional paid-in capital account to be in a negative position, this amount is then reclassified to retained earnings. Common stock repurchased is included in shares authorized but is not included in shares outstanding. |
Warranty | Warranty – We record a liability for estimated warranty claims at the time of sale. The amount of the liability is based on the trend in the historical ratio of claims to sales, the historical length of time between the sale and resulting warranty claim, new product introductions and other factors. In the event we determine that our current or future product repair and replacement costs exceed our estimates, an adjustment to these reserves would be charged to earnings in the period such determination is made. Warranty terms on machines range from one |
Pension and Profit Sharing Plans | Pension and Profit Sharing Plans – Substantially all U.S. employees are covered by various retirement benefit plans, including postretirement medical plans and defined contribution savings plans. Retirement benefits for eligible employees in foreign locations are funded principally through defined benefit plans, annuity or government programs. |
Postretirement Benefits | Postretirement Benefits – We accrue and recognize the cost of retiree health benefits over the employees’ period of service based on actuarial estimates. Benefits are only available for U.S. employees hired before January 1, 1999. |
Derivative Financial Instruments | Derivative Financial Instruments – The Company uses cross-currency swaps, interest rate swaps and foreign exchange forward and option contracts to manage risks generally associated with foreign exchange rate and interest rate volatility. We account for our hedging instruments as either assets or liabilities on the consolidated balance sheets and measure them at fair value. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. Gains and losses for all instruments that do not qualify for hedge accounting are recorded each period to net foreign currency transaction loss in our consolidated statements of income. Changes in the fair value of designated hedges are reported in accumulated other comprehensive loss on the consolidated balance sheet until a related transaction occurs. If the underlying hedged transaction ceases to exist, all changes in fair value of the related derivatives that have not been settled are recorded in our consolidated statements of income. |
Revenue Recognition | Revenue Recognition – Revenue is recognized when control transfers under the terms of the contract with our customers. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. Sales and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. We do not account for shipping and handling as a distinct performance obligation as we generally perform shipping and handling activities after we transfer control of goods to the customer. We have elected to account for shipping and handling costs associated with outbound freight after control of goods has transferred to a customer as a fulfillment cost. Incidental items that are immaterial in the context of the contract are not recognized as a separate performance obligation. We do not have any significantly extended payment terms as payment is generally received within one year of the point of sale. In general, we transfer control and recognize a sale at the point in time when products are shipped from our manufacturing facilities both direct to consumers and to distributors. Service revenue is recognized in the period the service is performed or ratably over the period of the related service contract. Consideration related to service contracts is deferred if the proceeds are received in advance of the satisfaction of the performance obligations and recognized over the contract period as the performance obligation is met. We use an output method to measure progress toward completion for certain prepaid service contracts, as this method appropriately depicts performance toward satisfaction of the performance obligations. For contracts with multiple performance obligations (i.e., a product and service component), we allocate the transaction price to the performance obligations in proportion to their stand-alone selling prices. We use an observable price to determine the stand-alone selling price for separate performance obligations. When allocating on a relative stand-alone selling price basis, any discounts contained within the contract are allocated proportionately to all of the performance obligations in the contract. We generally expense the incremental costs of obtaining a contract when incurred because the amortization period would be less than one year. These costs relate primarily to sales commissions and are recorded in selling and administrative expense in the consolidated statements of income. We do not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. In addition, we do not adjust the promised amount of consideration for the effects of a significant financing component if we expect, at contract inception, that the period between when we transfer a promised good or service to a customer and when the customer pays for that good or service will be one year or less. |
Share-Based Compensation | Share-Based Compensation – We account for share-based compensation awards on a fair value basis. The estimated grant date fair value of each option award is recognized in income on a straight-line basis over the requisite service period (generally the vesting period). The estimated fair value of each option award is calculated using the Black-Scholes option-pricing model. From time to time, we have elected to modify the terms of the original grant. These modified grants are accounted for as a new award and measured using the fair value method, resulting in the inclusion of additional compensation expense in our consolidated statements of income. Restricted share awards and units are recorded as compensation cost over the requisite service periods based on the market value on the date of grant. To determine the amount of compensation cost to be recognized in each period for these awards and for option awards, we account for forfeitures as they occur. Performance share awards (PSUs) are stock awards where the ultimate number of shares issued will be contingent on the Company’s performance against certain performance goals. The Compensation Committee has the ability to adjust performance goals or modify the manner of measuring or evaluating a performance goal using its discretion. The fair value of each PSU is based on the market value on the date of grant. We recognize expense related to the estimated vesting of our PSUs granted. The estimated vesting of the PSUs is based on the probability of achieving certain performance metrics over the specified performance period. To determine the amount of compensation cost to be recognized in each period, we estimate forfeitures. |
Research and Development | Research and Development – Research and development costs are expensed as incurred. |
Advertising Costs | Advertising Costs – |
Income Taxes | Income Taxes – Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the book and tax bases of existing assets and liabilities. A valuation allowance is provided when, in management’s judgment, it is more likely than not that some portion or all of the deferred tax asset will not be realized. We have established uncertain tax position accruals using management’s best judgment. We adjust these accruals as facts and circumstances change. Interest expense is recognized in the first period the interest would begin accruing. Penalties are recognized in the period we claim or expect to claim the position in our tax return. Interest and penalty expenses are classified as an income tax expense. |
Earnings Per Share | Earnings Per Share – Basic earnings per share is computed by dividing net earnings attributable to Tennant Company by the weighted average shares outstanding during the period. Diluted earnings per share assumes conversion of potentially dilutive stock options, performance shares, restricted shares and restricted stock units. These are not included in our computation of diluted earnings per share if we have a net loss attributable to the Company in a reporting period or if the instrument's effects are anti-dilutive. |
Newly Adopted Accounting Pronouncements | Newly Adopted Accounting Pronouncements Income Taxes In January 2021, we adopted Accounting Standards Update ("ASU") No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The impact of this amended guidance on our consolidated financial statements and related disclosures was immaterial. Defined Benefit Plans In December 2022 , we adopted ASU No. 2018-14 , Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans, which updates disclosure requirements for defined benefit pension and other postretirement plans. Adoption of this ASU did not have a material impact on our consolidated financial statements. Reference Rate Reform In March 2020 , the Financial Accounting Standards Board ("FASB") issued ASU No. 2020-04 , Reference Rate Reform (Topic 848 ). This ASU provides optional expedients to applying generally accepted accounting principles to certain contract modifications, hedging relationships, and other transactions affected by the reference rate reform, which affects the London Inter-bank Offered Rate ("LIBOR"), if certain criteria are met. The amendments were effective March 12, 2020 through December 31, 2022. There has been no material impact to our financial condition, results of operations, or cash flows from reference rate reform as of December 31, 2022. See Note 9 for information on the replacement of LIBOR with the Secured Overnight Financing Rate ("SOFR") in our Credit Agreements (defined below) on November 17, 2022. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following tables illustrate the disaggregation of revenue by geographic area, groups of similar products and services and sales channels for the years ended December 31: Net sales by geographic area 2023 2022 2021 Americas $ 840.3 $ 705.9 $ 658.3 Europe, Middle East and Africa (EMEA) 314.4 301.6 331.9 Asia Pacific (APAC) 88.9 84.7 100.6 Total $ 1,243.6 $ 1,092.2 $ 1,090.8 Net sales are attributed to each geographic area based on the end user country and are net of intercompany sales. Net sales by groups of similar products and services 2023 2022 2021 Equipment $ 776.4 $ 664.0 $ 679.9 Parts and consumables 279.5 263.1 249.3 Specialty surface coatings (a) — — 1.5 Service and other 187.7 165.1 160.1 Total $ 1,243.6 $ 1,092.2 $ 1,090.8 (a) On February 1, 2021, we sold our Coatings business. Further details regarding the sale are discussed in Note 5. Net sales by sales channel 2023 2022 2021 Sales direct to consumer $ 854.4 $ 712.6 $ 692.4 Sales to distributors 389.2 379.6 398.4 Total $ 1,243.6 $ 1,092.2 $ 1,090.8 |
Schedule of Change in Sales Incentive Accrual Balance and Deferred Revenue Balance | The change in our sales incentive accrual balance for the years ended December 31, 2023 and 2022 was as follows: 2023 2022 Beginning balance $ 20.0 $ 19.9 Additions to sales incentive accrual 29.5 22.5 Contract payments (28.5) (21.8) Foreign currency fluctuations 0.2 (0.6) Ending balance $ 21.2 $ 20.0 The change in the deferred revenue balance for the years ended December 31, 2023 and 2022 was as follows: 2023 2022 Beginning balance $ 9.3 $ 11.2 Increase in deferred revenue representing our obligation to satisfy future performance obligations 21.7 24.2 Decrease in deferred revenue for amounts recognized in net sales for satisfied performance obligations (20.8) (25.5) Foreign currency fluctuations 0.1 (0.6) Ending balance $ 10.3 $ 9.3 |
Schedule of Recognition of Net Sales in Future Periods | Of this, we expect to recognize the following approximate amounts in net sales in the following periods: 2024 $ 7.9 2025 1.2 2026 0.7 2027 0.3 2028 0.1 Thereafter 0.1 Total $ 10.3 |
Management Actions (Tables)
Management Actions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Pre-Tax restructuring charges | The following pre-tax restructuring charges were included in the consolidated statements of income: 2023 2022 Severance-related costs - Selling and administrative expense $ 1.9 $ 2.2 Severance-related costs - Cost of sales 0.7 — Other costs - Selling and administrative expense (a) 0.3 1.6 Other costs - Cost of sales (a) — 0.3 Total pre-tax restructuring costs $ 2.9 $ 4.1 (a) Includes facility exit costs associated with facility moves. |
Schedule of Reconciliation of Liability Balance of Severance and Related Costs | A reconciliation to the ending liability balance of severance and related costs as of December 31, 2023 is as follows: 2023 2022 Beginning balance $ 1.7 $ 4.9 New charges 3.2 2.2 Cash payments (1.9) (2.9) Foreign currency adjustments — (0.5) Adjustment to accrual (0.6) (2.0) Ending balance $ 2.4 $ 1.7 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories as of December 31 consisted of the following: 2023 2022 Inventories carried at LIFO: Finished goods (a) $ 74.7 $ 85.0 Raw materials and work-in-process 38.5 46.4 Excess of FIFO over LIFO cost (b) (47.7) (49.7) Total LIFO inventories $ 65.5 $ 81.7 Inventories carried at FIFO: Finished goods (a) $ 52.8 $ 68.9 Raw materials and work-in-process 57.6 56.0 Total FIFO inventories $ 110.4 $ 124.9 Total inventories $ 175.9 $ 206.6 (a) Finished goods include machines, parts and consumables and component parts that are used in our products. (b) The difference between replacement cost and the stated LIFO inventory value is not materially different from the reserve for the LIFO valuation method. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment and related accumulated depreciation, including equipment under finance leases, as of December 31, consisted of the following: 2023 2022 Property, plant and equipment: Land $ 21.0 $ 22.0 Buildings and improvements 137.6 149.0 Machinery and manufacturing equipment 209.5 171.1 Office equipment 116.0 107.7 Construction in progress 7.6 9.4 Total property, plant and equipment 491.7 459.2 Less: accumulated depreciation (304.0) (279.3) Property, plant and equipment, net $ 187.7 $ 179.9 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in the Carrying Amount of Goodwill | The changes in the carrying amount of goodwill are as follows: Goodwill Accumulated Impairment Losses Total Balance as of December 31, 2023 $ 220.7 $ (33.3) $ 187.4 Foreign currency fluctuations 1.9 3.5 5.4 Balance as of December 31, 2022 $ 218.8 $ (36.8) $ 182.0 Foreign currency fluctuations (15.1) 4.0 (11.1) Balance as of December 31, 2021 $ 233.9 $ (40.8) $ 193.1 |
Schedule of Balances of Acquired Intangible Assets, Excluding Goodwill | The balances of acquired intangible assets, excluding goodwill, are as follows: Customer Trade Names Technology Total Balance as of December 31, 2023 Original cost $ 150.6 $ 29.3 $ 16.3 $ 196.2 Accumulated amortization (100.8) (19.2) (13.1) (133.1) Carrying amount $ 49.8 $ 10.1 $ 3.2 $ 63.1 Weighted-average original life (in years) 15 11 11 Balance as of December 31, 2022 Original cost $ 146.6 $ 28.6 $ 15.9 $ 191.1 Accumulated amortization (87.5) (15.9) (11.3) (114.7) Carrying amount $ 59.1 $ 12.7 $ 4.6 $ 76.4 Weighted-average original life (in years) 15 11 11 |
Schedule of Estimated Aggregate Amortization Expense | Estimated aggregate amortization expense based on the current carrying amount of amortizable intangible assets for each of the five succeeding years is as follows: 2024 $ 13.4 2025 12.0 2026 10.7 2027 7.3 2028 5.6 Thereafter 14.1 Total $ 63.1 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Outstanding | Debt outstanding as of December 31 consisted of the following: 2023 2022 Credit facility borrowings: Revolving credit facility borrowings $ 110.0 $ 205.0 Term loan facility borrowings 90.0 95.0 Finance lease liabilities 0.6 0.3 Total debt 200.6 300.3 Less: current portion of long-term debt (a) (6.4) (5.2) Long-term debt $ 194.2 $ 295.1 (a) As of December 31, 2023, the Company is required to repay $6.3 million in outstanding credit facility borrowings and $0.1 million of current maturities of finance lease liabilities over the next 12 months. |
Schedule of Aggregate Maturities of Outstanding Debt | The aggregate maturities of our outstanding debt, excluding unamortized debt issuance costs, as of December 31, 2023, are as follows: 2024 $ 6.4 2025 9.2 2026 185.0 2027 — 2028 — Thereafter — Total aggregate maturities $ 200.6 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities as of December 31 consisted of the following: 2023 2022 Other current liabilities: Taxes $ 11.3 $ 11.1 Warranty reserve 7.4 7.8 Deferred revenue 7.9 6.6 Customer sales incentives 21.3 20.0 Freight 3.9 6.4 Restructuring 2.4 1.7 Operating leases 14.4 15.0 Miscellaneous accrued expenses 20.0 17.7 Total other current liabilities $ 88.6 $ 86.3 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value of Derivative Instruments | The fair value of derivative instruments on our consolidated balance sheets as of December 31 consisted of the following: Derivative Assets Derivative Liabilities Balance Sheet Location December 31, 2023 December 31, 2022 Balance Sheet Location December 31, 2023 December 31, 2022 Derivatives designated as cash flow hedges: Interest rate swaps Other current assets 0.8 0.8 Other current liabilities — Interest rate swaps Other assets — — Other liabilities 1.9 1.8 Derivatives designated as fair value hedges: Cross-currency swaps Other current assets 1.3 1.4 Other current liabilities — Cross-currency swaps Other assets — 0.8 Other liabilities 3.3 — Derivatives designated as net investment hedges: Cross-currency swaps Other current assets 1.2 1.2 Other current liabilities — Cross-currency swaps Other assets — 0.5 Other liabilities 3.4 — Derivatives not designated as hedging instruments: Foreign currency forward contracts (a) Other current assets — 0.1 Other current liabilities 1.6 0.3 (a) Contracts that mature within the next 12 months are included in other current assets and other current liabilities for asset derivatives and liabilities derivatives, respectively, on our consolidated balance sheets. Contracts with maturities greater than 12 months are included in other assets and other liabilities for asset derivatives and liability derivatives, respectively, in our consolidated balance sheets. Amounts included in our consolidated balance sheets are recorded net where a right of offset exists with the same derivative counterparty. |
Schedule of Effects of Derivatives Designated as Hedging Instruments | The following tables include the amounts in the consolidated statements of income in which the effects of derivative instruments are recorded and the effects of derivative instruments activity on these line items for the years ended December 31, 2023 and December 31, 2022: 2023 2022 Total Amount of Gain (Loss) on Cash Flow Total Amount of Gain (Loss) on Cash Flow Derivatives designated as cash flow hedges: Net sales $ 1,243.6 $ — $ 1,092.2 $ — Interest expense, net (13.5) 0.9 (7.1) 0.7 Net foreign currency transaction loss 0.3 — (1.2) 4.7 Derivatives designated as fair value hedges: Interest expense, net (13.5) 1.1 (7.1) 0.9 Net foreign currency transaction loss (gain) 0.3 (1.9) (1.2) 2.0 Derivatives designated as net investment hedges: Interest expense, net (13.5) 1.0 (7.1) 0.7 The effect of derivative instruments designated as hedges and derivative instruments not designated as hedges in our consolidated statements of income for the three years ended December 31 were as follows: 2023 2022 2021 Derivatives designated as cash flow hedges: Net gain (loss) recognized in other comprehensive (loss) income, net of tax (a) $ 0.6 $ 3.1 $ 10.8 Net loss reclassified from accumulated other comprehensive loss into income, net of tax, effective portion to net sales — — (0.3) Net gain reclassified from accumulated other comprehensive loss into income, net of tax, effective portion to interest income 2.0 0.5 1.9 Net gain (loss) reclassified from accumulated other comprehensive loss into income, net of tax, effective portion to net foreign currency transaction losses — 3.6 9.7 Derivatives designated as fair value hedges: Net gain recognized in other comprehensive loss, net of tax — 2.7 — Net gain reclassified from accumulated other comprehensive loss into income, net of tax, effective portion to interest expense, net — 0.9 — Derivatives designated as net investment hedges: Net gain recognized in other comprehensive loss, net of tax 2.0 4.2 — Net gain reclassified from accumulated other comprehensive loss into income, net of tax, effective portion to interest expense, net 1.0 0.7 — Derivatives not designated as hedging instruments: Net gain (loss) recognized in income (b) $ 1.7 $ 1.0 $ 2.5 (a) Net change in the fair value of the effective portion classified in other comprehensive (loss) income. (b) Classified in net foreign currency transaction losses. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Subject to Fair Value Measurements | Our population of assets and liabilities subject to fair value measurements as of December 31, 2023 were as follows: Fair Value Level 1 Level 2 Level 3 Assets: Cross-currency swaps $ 2.5 $ — $ 2.5 $ — Interest rate swaps 0.8 — 0.8 — Total assets 3.3 — 3.3 — Liabilities: Foreign currency forward exchange contracts 1.6 — 1.6 — Cross-currency swaps 6.7 — 6.7 — Interest rate swaps 1.9 — 1.9 — Total liabilities $ 10.2 $ — $ 10.2 $ — Our population of assets and liabilities subject to fair value measurements as of December 31, 2022 were as follows: Fair Value Level 1 Level 2 Level 3 Assets: Foreign currency forward exchange contracts $ 0.1 $ — $ 0.1 $ — Cross-currency swaps 3.9 — 3.9 — Interest rate swaps 0.8 — 0.8 — Total assets 4.8 — 4.8 — Liabilities: Foreign currency forward exchange contracts 0.3 — 0.3 — Interest rate swaps 1.8 — 1.8 $ — Total liabilities $ 2.1 $ — $ 2.1 $ — |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Weighted-average Asset Allocations by Asset Category | Weighted-average asset allocations by asset category of the U.K. Pension Plan as of December 31, 2023 are as follows: Quoted Prices in Active Markets for Significant Observable Inputs Significant Unobservable Inputs Asset category Fair Value (Level 1) (Level 2) (Level 3) Investment account held by pension plan (a) $ 12.7 $ — $ — $ 12.7 Total $ 12.7 $ — $ — $ 12.7 (a) This category is comprised of investments in insurance contracts. Weighted-average asset allocations by asset category of the U.K. Pension Plan as of December 31, 2022 are as follows: Quoted Prices in Active Markets for Significant Observable Inputs Significant Unobservable Inputs Asset category Fair Value (Level 1) (Level 2) (Level 3) Investment account held by pension plan (a) $ 11.3 — — $ 11.3 Total $ 11.3 $ — $ — $ 11.3 (a) This category is comprised of investments in insurance contracts. |
Schedule of Reconciliation of Level 3 Investments | A reconciliation of the beginning and ending balances of the Level 3 investments of our U.K. Pension Plan during the years ended December 31 is as follows: 2023 2022 Fair value at beginning of year $ 11.3 $ 12.9 Purchases, sales, issuances and settlements, net (0.3) (0.3) Net (loss) gain 1.1 0.1 Foreign currency 0.6 (1.4) Fair value at end of year $ 12.7 $ 11.3 |
Schedule of Weighted-Average Assumptions | Weighted-average assumptions used to determine benefit obligations as of December 31 are as follows: U.S. Nonqualified Plan Non-U.S. Postretirement 2023 2022 2023 2022 2023 2022 Discount rate 5.07 % 5.37 % 4.26 % 1.05 % 5.06 % 5.37 % Rate of compensation increase — % — % 3.00 % 2.25 % — % — % Weighted-average assumptions used to determine net periodic benefit costs as of December 31 are as follows: U.S. Nonqualified Plan Non-U.S. Postretirement 2023 2022 2021 2023 2022 2021 2023 2022 2021 Discount rate 5.37 % 2.54 % 2.06 % 4.68 % 1.55 % 1.05 % 5.37 % 2.53 % 2.07 % Expected long-term rate of return on plan assets — % — % — % 6.10 % 3.20 % 2.70 % — % — % — % Rate of compensation increase — % — % — % 2.25 % 1.50 % — % — % — % — % |
Schedule of Accumulated Benefit Obligations | The accumulated benefit obligations as of December 31 for all defined benefit plans are as follows: 2023 2022 U.S. Nonqualified Plan $ 0.9 $ 0.9 U.K. Pension Plan 6.2 6.5 German Pension Plan 1.0 0.7 French Pension Plan 0.4 0.5 Italian Pension Plan 2.5 2.4 |
Information For Our Plans With An Accumulated Benefit Obligation In Excess Of Plan Assets | Information for our plans with an accumulated benefit obligation in excess of plan assets as of December 31 is as follows: 2023 2022 Accumulated benefit obligation $ 4.8 $ 4.5 Fair value of plan assets — — |
Information For Our Plans With A Projected Benefit Obligation In Excess Of Plan Assets | Information for our plans with a projected benefit obligation in excess of plan assets as of December 31 is as follows: 2023 2022 Projected benefit obligation $ 5.0 $ 4.7 Fair value of plan assets — — |
Schedule of Assumed Health Care Cost Trend Rates | Assumed healthcare cost trend rates as of December 31 are as follows: 2023 2022 Healthcare cost trend rate assumption for the next year Pre-65 8.00 % 5.30 % Healthcare cost trend rate assumption for the next year Post-65 8.80 % 5.80 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.00 % 4.00 % Year that the rate reaches the ultimate trend rate 2047 2045 |
Schedule of Changes In Benefit Obligations and Plan Assets | Summaries related to changes in benefit obligations and plan assets and to the funded status of our defined benefit and postretirement medical benefit plans are as follows: U.S. Nonqualified Plan Non-U.S. Postretirement 2023 2022 2023 2022 2023 2022 Change in benefit obligation: Benefit obligation at beginning of year $ 0.9 $ 1.1 $ 10.3 $ 16.2 $ 5.4 $ 7.0 Plan combinations — — — 1.0 — — Service cost — — 0.1 0.3 — — Interest cost — — 0.5 0.2 0.3 0.2 Actuarial (gain) loss 0.1 (0.1) (0.3) (5.1) (0.7) (1.1) Foreign exchange — — 0.5 (1.6) — — Settlement — — — — — — Benefits paid (0.1) (0.1) (0.7) (0.7) (0.4) (0.7) Benefit obligation at end of year $ 0.9 $ 0.9 $ 10.4 $ 10.3 $ 4.6 $ 5.4 Change in fair value of plan assets and net accrued liabilities: Fair value of plan assets at beginning of year $ — $ — $ 11.3 $ 12.9 $ — $ — Actual return on plan assets — — 1.1 0.1 — — Employer contributions 0.1 0.1 0.3 0.4 0.4 0.7 Foreign exchange — — 0.6 (1.4) — — Settlement — — — — — — Benefits paid (0.1) (0.1) (0.6) (0.7) (0.4) (0.7) Fair value of plan assets at end of year — — 12.7 11.3 — — Funded status at end of year $ (0.9) $ (0.9) $ 2.3 $ 1.0 $ (4.6) $ (5.4) Amounts recognized in the consolidated balance sheets consist of: Noncurrent other assets $ — $ — $ 6.5 $ 4.8 $ — $ — Current liabilities (0.1) (0.1) (0.3) (0.2) (0.6) (0.7) Long-term liabilities (0.8) (0.8) (3.9) (3.6) (4.0) (4.7) Net accrued liability $ (0.9) $ (0.9) $ 2.3 $ 1.0 $ (4.6) $ (5.4) Amounts recognized in accumulated other comprehensive loss consist of: Prior service cost $ — $ — $ (0.1) $ (0.1) $ — $ — Net actuarial (loss) gain (0.7) (0.7) 3.6 2.8 1.8 1.3 Accumulated other comprehensive (loss) income $ (0.7) $ (0.7) $ 3.5 $ 2.7 $ 1.8 $ 1.3 |
Schedule of Net Benefit Costs | The components of the net periodic benefit cost (credit) for the three years ended December 31 were as follows: U.S. Nonqualified Plan Non-U.S. Postretirement 2023 2022 2021 2023 2022 2021 2023 2022 2021 Service cost $ — $ — $ — $ 0.1 $ 0.3 $ — $ — $ — $ 0.1 Interest cost — — 0.1 0.5 0.2 0.2 0.3 0.2 0.1 Expected return on plan assets — — — (0.7) (0.4) (0.4) — — — Amortization of net actuarial loss 0.1 0.1 — (0.1) — 0.1 (0.2) — — Net periodic benefit cost (credit) $ 0.1 $ 0.1 $ 0.1 $ (0.2) $ 0.1 $ (0.1) $ 0.1 $ 0.2 $ 0.2 |
Schedule of Changes In Accumulated Other Comprehensive Loss | The changes in accumulated other comprehensive loss for the three years ended December 31 were as follows: U.S. Nonqualified Plan Non-U.S. Postretirement 2023 2022 2021 2023 2022 2021 2023 2022 2021 Prior service cost $ — $ — $ — $ — $ — $ — $ — $ — $ — Net actuarial (gain) loss 0.1 (0.1) — (0.9) (5.0) 0.2 (0.7) (1.1) 0.6 Amortization of net actuarial (loss) gain (0.1) (0.1) — 0.1 — (0.1) 0.2 — — Total recognized in other comprehensive (income) loss $ — $ (0.2) $ — $ (0.8) $ (5.0) $ 0.1 $ (0.5) $ (1.1) $ 0.6 Total recognized in net benefit (credit) cost and other comprehensive (income) loss $ 0.1 $ (0.1) $ 0.1 $ (1.0) $ (4.9) $ — $ (0.4) $ (0.9) $ 0.8 |
Schedule Of Benefit Payments For Expected Future Service | The following benefit payments, which reflect expected future service, are expected to be paid: U.S. Non-U.S. Postretirement 2024 $ 0.1 $ 0.6 $ 0.6 2025 0.1 0.6 0.5 2026 0.1 0.6 0.5 2027 0.1 0.6 0.5 2028 0.1 0.6 0.5 2028 to 2031 0.3 3.7 2.0 Total $ 0.8 $ 6.7 $ 4.6 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss, Net of Tax | The changes in components of accumulated other comprehensive loss, net of tax, are as follows: Foreign Currency Translation Pension and Postretirement Derivative Financial Instruments Total December 31, 2021 $ (36.0) $ (2.1) $ 0.2 $ (37.9) Other comprehensive (loss) income before reclassifications (17.2) 4.8 5.8 (6.6) Amounts reclassified from accumulated other comprehensive loss (0.7) — (5.0) (5.7) Net current period other comprehensive (loss) income (17.9) 4.8 0.8 (12.3) December 31, 2022 $ (53.9) $ 2.7 $ 1.0 $ (50.2) Other comprehensive (loss) income before reclassifications 9.3 1.0 0.6 10.9 Amounts reclassified from accumulated other comprehensive loss (1.0) — (2.0) (3.0) Net current period other comprehensive (loss) income 8.3 1.0 (1.4) 7.9 December 31, 2023 $ (45.6) $ 3.7 $ (0.4) $ (42.3) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Lease Assets and Liabilities | The lease assets and liabilities as of December 31 are as follows: Leases Classification 2023 2022 Assets Operating lease assets Operating lease assets $ 41.7 $ 31.8 Finance lease assets Property, plant and equipment (a) 0.6 0.2 Total leased assets $ 42.3 $ 32.0 Liabilities Current: Operating Other current liabilities $ 14.4 $ 15.0 Finance Current portion of long-term debt 0.1 — Noncurrent: Operating Long-term operating lease liabilities 27.4 17.1 Finance Long-term debt 0.5 0.1 Total lease liabilities $ 42.4 $ 32.2 (a) Finance lease assets are recorded net of accumulated amortization of $0.1 million and less than $0.1 million as of December 31, 2023 and December 31, 2022, respectively. The lease term and discount rate as of December 31 were as follows: Lease Term and Discount Rate 2023 2022 Weighted-average remaining lease term (years): Operating leases 3.8 2.9 Finance leases 4.7 4.1 Weighted-average discount rate: Operating leases 6.0% 3.9% Finance leases 6.0% 2.5% Other information related to cash paid related to lease liabilities and lease assets obtained for the years ended December 31 was as follows: Other Information 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 18.9 $ 18.2 Financing cash flows from finance leases 0.1 0.1 Lease assets obtained in exchange for new finance lease liabilities 0.7 0.3 Lease assets obtained in exchange for new operating lease liabilities 18.8 11.4 |
Schedule of Lease Cost | The lease cost for the three years ended December 31 was as follows: Lease Cost 2023 2022 2021 Operating lease cost (a) $ 28.9 $ 26.2 $ 26.6 Finance lease cost (b) 0.1 0.1 0.1 Total lease cost $ 29.0 $ 26.3 $ 26.7 (a) Includes short-term lease costs of $5.9 million and $4.8 million and variable lease costs of $4.2 million and $3.3 million for the years ended December 31, 2023 and December 31, 2022, respectively. (b) Includes amortization of leased assets and interest on lease liabilities. |
Schedule of Maturities of Operating Lease Liability | The maturity of lease liabilities as of December 31, 2023 was as follows: Maturity of Lease Liabilities Operating Leases Finance Leases Total 2024 $ 16.0 $ 0.2 $ 16.2 2025 11.6 0.2 11.8 2026 8.2 0.1 8.3 2027 4.6 0.1 4.7 2028 3.3 0.1 3.4 Thereafter 3.0 — 3.0 Total lease payments $ 46.7 $ 0.7 $ 47.4 Less: Interest (4.9) (0.1) (5.0) Present value of lease liabilities $ 41.8 $ 0.6 $ 42.4 |
Schedule of Maturities of Finance Lease Liability | The maturity of lease liabilities as of December 31, 2023 was as follows: Maturity of Lease Liabilities Operating Leases Finance Leases Total 2024 $ 16.0 $ 0.2 $ 16.2 2025 11.6 0.2 11.8 2026 8.2 0.1 8.3 2027 4.6 0.1 4.7 2028 3.3 0.1 3.4 Thereafter 3.0 — 3.0 Total lease payments $ 46.7 $ 0.7 $ 47.4 Less: Interest (4.9) (0.1) (5.0) Present value of lease liabilities $ 41.8 $ 0.6 $ 42.4 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Before Income Taxes | Income before income taxes for the three years ended December 31 was as follows: 2023 2022 2021 U.S. operations $ 94.2 $ 58.9 $ 47.5 Foreign operations 29.6 20.6 26.6 Total $ 123.8 $ 79.5 $ 74.1 |
Schedule of Income Tax Expense (Benefit) | Income tax expense (benefit) for the three years ended December 31 was as follows: 2023 2022 2021 Current: Federal $ 28.7 $ 17.1 $ 11.1 Foreign 8.5 7.9 11.2 State 4.0 3.8 1.9 Total current $ 41.2 $ 28.8 $ 24.2 Deferred: Federal $ (8.7) $ (6.3) $ 0.6 Foreign (17.3) (8.5) (15.5) State (0.9) (0.8) (0.1) Total deferred $ (26.9) $ (15.6) $ (15.0) Total: Federal $ 20.0 $ 10.8 $ 11.7 Foreign (8.8) (0.6) (4.3) State 3.1 3.0 1.8 Total income tax expense $ 14.3 $ 13.2 $ 9.2 |
Schedule of Effective Income Tax Rate | Our effective income tax rate varied from the U.S. federal statutory tax rate for the three years ended December 31 as follows: 2023 2022 2021 Tax at statutory rate 21.0 % 21.0 % 21.0 % Increases (decreases) in the tax rate from: State and local taxes, net of federal benefit 2.4 2.4 2.2 Effect of foreign operations (10.9) (4.9) (6.3) Effect of changes in valuation allowances (0.2) (1.2) (4.5) Excess tax benefits on share-based compensation 1.0 1.1 1.8 Share-based payments 0.1 (0.4) (0.9) Research and development credit (1.3) (1.5) (1.4) Other, net (0.5) 0.1 0.6 Effective income tax rate 11.6 % 16.6 % 12.5 % |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities were comprised of the following as of December 31: 2023 2022 Deferred tax assets: Inventory $ 3.8 $ 4.1 Compensation and employee benefits 13.2 11.4 Warranty reserves 2.4 2.3 Allowance for doubtful accounts and deferred revenue 2.7 2.3 Operating lease liabilities 9.0 5.9 Tax loss carryforwards 6.9 8.0 Tax credit carryforwards 3.7 3.6 Capitalized research and development costs 12.3 6.6 Goodwill and intangible assets 4.5 — Other 1.2 (0.9) Gross deferred tax assets $ 59.7 $ 43.3 Less: valuation allowance (3.2) (3.3) Total net deferred tax assets $ 56.5 $ 40.0 Deferred tax liabilities: Operating lease assets $ 9.5 $ 6.1 Fixed assets 9.5 11.2 Goodwill and intangible assets — 13.8 Total deferred tax liabilities $ 19.0 $ 31.1 Net deferred tax assets $ 37.5 $ 8.9 |
Schedule of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2023 2022 Beginning balance $ 4.2 $ 4.7 (Decreases) as a result of tax positions taken during a prior period — (0.1) Increases as a result of tax positions taken during the current year 1.2 0.8 Decreases relating to settlement with tax authorities (0.2) — Decreases as a result of a lapse of the applicable statute of limitations (1.1) (1.0) Decreases as a result of foreign currency fluctuations — (0.2) Ending balance $ 4.1 $ 4.2 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Valuation Assumptions | The following table illustrates the valuation assumptions used for the 2023, 2022 and 2021 grants: 2023 2022 2021 Expected volatility 35 % 34 % 34 - 35% Weighted-average expected volatility 35 % 34 % 35 % Expected dividend yield 1.6 % 1.2 % 1.3 - 1.4% Weighted-average expected dividend yield 1.6 % 1.2 % 1.4 % Expected term, in years 5 5 5 Risk-free interest rate 4.2 - 4.2% 1.9 - 1.9% 0.8 - 0.9% |
Schedule of Activity for Stock Option Awards | The following table summarizes the activity during the year ended December 31, 2023 for stock option awards: Shares Weighted-Average Exercise Outstanding at beginning of year 931,843 $ 66.97 Granted 60,492 72.88 Exercised (338,787) 61.17 Forfeited (10,667) 75.76 Expired (450) 71.70 Outstanding at end of year 642,431 $ 70.43 Exercisable at end of year 534,335 $ 69.33 |
Schedule of Activity for Nonvested Restricted Share Awards | The following table summarizes the activity during the year ended December 31, 2023 for nonvested restricted share awards: Shares Weighted-Average Grant Date Fair Nonvested at beginning of year 75,412 $ 62.94 Granted 20,094 72.88 Vested (5,667) 78.57 Forfeited (4,873) 76.48 Nonvested at end of year 84,966 $ 63.48 |
Schedule of Activity for Nonvested Performance Share Awards | The following table summarizes the activity during the year ended December 31, 2023 for nonvested performance share awards: Shares Weighted-Average Grant Date Fair Nonvested at beginning of year 134,763 $ 78.29 Granted 67,396 73.12 Vested (32,130) 77.27 Forfeited (16,881) 76.45 Nonvested at end of year 153,148 $ 76.44 |
Schedule of Activity for Nonvested Restricted Stock Units | The following table summarizes the activity during the year ended December 31, 2023 for nonvested restricted stock units: Shares Weighted-Average Grant Date Fair Nonvested at beginning of year 114,704 $ 73.55 Granted 59,034 77.59 Vested (38,303) 78.54 Forfeited (6,216) 74.15 Nonvested at end of year 129,219 $ 73.89 |
Income Attributable to Tennan_2
Income Attributable to Tennant Company Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Computations of Basic and Diluted Earnings per Share | The computations of basic and diluted earnings attributable to Tennant Company per share for the years ended December 31 were as follows: 2023 2022 2021 Numerator: Net income $ 109.5 $ 66.3 $ 64.9 Denominator: Basic - weighted average shares outstanding 18,509,523 18,494,356 18,499,674 Effect of dilutive securities 274,110 202,899 349,543 Diluted - weighted average shares outstanding 18,783,633 18,697,255 18,849,217 Basic earnings per share $ 5.92 $ 3.58 $ 3.51 Diluted earnings per share $ 5.83 $ 3.55 $ 3.44 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Net Sales and Long-lived Assets by Geographic Area | The following table presents net sales by geographic area for the three years ended December 31: 2023 2022 2021 Net Sales: United States $ 726.8 $ 618.8 $ 566.4 Other Americas 113.5 87.1 91.9 Americas 840.3 705.9 658.3 Europe, Middle East, Africa 314.4 301.6 331.9 Asia Pacific 88.9 84.7 100.6 Total $ 1,243.6 $ 1,092.2 $ 1,090.8 Accounting policies of the operations in various operating segments are the same as those described in Note 1. Net sales are attributed to each operating segment based on the end user country and are net of intercompany sales. Apart from the United States shown in the table above, there were no individual foreign locations which had net sales which represented more than 10% of our consolidated net sales. No single customer represents more than 10% of our consolidated net sales. The following table presents long-lived assets by geographic area as of December 31: 2023 2022 2021 Long-lived assets: United States $ 104.2 $ 105.9 $ 106.6 Other Americas 31.9 26.4 18.8 Americas 136.1 132.3 125.4 Italy 218.0 223.5 280.4 Other Europe, Middle East, Africa 75.6 69.6 36.2 Europe, Middle East, Africa 293.6 293.1 316.6 Asia Pacific 30.4 32.1 35.8 Total $ 460.1 $ 457.5 $ 477.8 |
Operations and Summary of Sig_3
Operations and Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Oct. 31, 2016 | |
Significant Accounting Policies [Line Items] | |||||
Accumulated other comprehensive loss | $ (578,300,000) | $ (472,100,000) | $ (435,100,000) | $ (406,100,000) | |
Restricted cash | 200,000 | 200,000 | |||
Goodwill impairment loss | $ 0 | 0 | |||
Number of shares authorized to be repurchased (in shares) | 821,413 | 1,000,000 | |||
Advertising expense | $ 4,600,000 | 4,000,000 | 4,600,000 | ||
Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Warranty term (in years) | 1 year | ||||
Maximum | |||||
Significant Accounting Policies [Line Items] | |||||
Warranty term (in years) | 4 years | ||||
Buildings and improvements | |||||
Significant Accounting Policies [Line Items] | |||||
Useful life (in years) | 30 years | ||||
Property, Plant and Equipment, Other | Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Useful life (in years) | 3 years | ||||
Property, Plant and Equipment, Other | Maximum | |||||
Significant Accounting Policies [Line Items] | |||||
Useful life (in years) | 15 years | ||||
Foreign Currency Translation Adjustments | |||||
Significant Accounting Policies [Line Items] | |||||
Accumulated other comprehensive loss | $ 45,600,000 | $ 53,900,000 | $ 36,000,000 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 1,243.6 | $ 1,092.2 | $ 1,090.8 |
Sales direct to consumer | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 854.4 | 712.6 | 692.4 |
Sales to distributors | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 389.2 | 379.6 | 398.4 |
Equipment | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 776.4 | 664 | 679.9 |
Parts and consumables | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 279.5 | 263.1 | 249.3 |
Specialty surface coatings | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 0 | 0 | 1.5 |
Service and other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 187.7 | 165.1 | 160.1 |
Americas | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 840.3 | 705.9 | 658.3 |
Europe, Middle East and Africa (EMEA) | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 314.4 | 301.6 | 331.9 |
Asia Pacific (APAC) | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 88.9 | $ 84.7 | $ 100.6 |
Revenue - Contract Liabilities
Revenue - Contract Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Sales Incentives | ||
Movement in Deferred Sales Inducements [Roll Forward] | ||
Beginning balance | $ 20 | $ 19.9 |
Additions to sales incentive accrual | 29.5 | 22.5 |
Contract payments | (28.5) | (21.8) |
Foreign currency fluctuations | 0.2 | (0.6) |
Ending balance | 21.2 | 20 |
Movement in Deferred Revenue [Roll Forward] | ||
Foreign currency fluctuations | 0.2 | (0.6) |
Maintenance | ||
Movement in Deferred Sales Inducements [Roll Forward] | ||
Foreign currency fluctuations | 0.1 | (0.6) |
Movement in Deferred Revenue [Roll Forward] | ||
Beginning balance | 9.3 | 11.2 |
Increase in deferred revenue representing our obligation to satisfy future performance obligations | 21.7 | 24.2 |
Decrease in deferred revenue for amounts recognized in net sales for satisfied performance obligations | (20.8) | (25.5) |
Foreign currency fluctuations | 0.1 | (0.6) |
Ending balance | $ 10.3 | $ 9.3 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Deferred revenue, current | $ 7.9 | $ 6.6 |
Other Current Liabilities | Maintenance | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue, current | 7.9 | 6.6 |
Other liabilities | Maintenance | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue, noncurrent | $ 2.4 | $ 2.7 |
Minimum | ||
Disaggregation of Revenue [Line Items] | ||
Standard prepaid maintenance contract time period (months) | 12 months | |
Maximum | ||
Disaggregation of Revenue [Line Items] | ||
Standard prepaid maintenance contract time period (months) | 60 months |
Revenue - Remaining Performance
Revenue - Remaining Performance Obligation (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total remaining performance obligation | $ 10.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total remaining performance obligation | $ 7.9 |
Remaining performance obligation, expected timing of satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total remaining performance obligation | $ 1.2 |
Remaining performance obligation, expected timing of satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total remaining performance obligation | $ 0.7 |
Remaining performance obligation, expected timing of satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total remaining performance obligation | $ 0.3 |
Remaining performance obligation, expected timing of satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total remaining performance obligation | $ 0.1 |
Remaining performance obligation, expected timing of satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total remaining performance obligation | $ 0.1 |
Remaining performance obligation, expected timing of satisfaction period |
Management Actions - Pre-Tax Se
Management Actions - Pre-Tax Severance Related Charges (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||
Total pre-tax restructuring costs | $ 2.9 | $ 4.1 |
Selling, General and Administrative Expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance-related costs | 1.9 | 2.2 |
Other costs | 0.3 | 1.6 |
Cost of Sales | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance-related costs | 0.7 | 0 |
Other costs | $ 0 | $ 0.3 |
Management Actions - Reconcilia
Management Actions - Reconciliation of Liability Balance of Severance and Related Costs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Restructuring Reserve [Roll Forward] | ||
New charges | $ 2.9 | $ 4.1 |
Severance-related costs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 1.7 | 4.9 |
New charges | 3.2 | 2.2 |
Cash payments | (1.9) | (2.9) |
Foreign currency adjustments | 0 | (0.5) |
Adjustment to accrual | (0.6) | (2) |
Ending balance | $ 2.4 | $ 1.7 |
Acquisition and Divestitures (D
Acquisition and Divestitures (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2019 | |
Business Acquisition [Line Items] | ||||||
Pre-tax gain on sale of business | $ 0 | $ 3.7 | $ 9.8 | |||
Proceeds from sale of assets, net of cash divested | 0 | 4.1 | 24.7 | |||
Contingent consideration payments | $ 0 | $ 0 | 2.5 | |||
Gaomei | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price | $ 22.4 | |||||
Contingent consideration payments | $ 2.5 | |||||
Specialty surface coatings | Disposal group, disposed of by sale | ||||||
Business Acquisition [Line Items] | ||||||
Pre-tax gain on sale of business | $ 9.8 | |||||
Proceeds from sale of assets, net of cash divested | $ 24.7 | |||||
Building Located in Golden Valley, Minnesota | ||||||
Business Acquisition [Line Items] | ||||||
Pre-tax gain on sale of building | $ 3.7 | |||||
Proceeds from sale of building | $ 4.1 |
Inventories - Inventories (Deta
Inventories - Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Inventory [Line Items] | ||
Excess of FIFO over LIFO cost | $ (47.7) | $ (49.7) |
Total LIFO inventories | 65.5 | 81.7 |
Total FIFO inventories | 110.4 | 124.9 |
Total inventories | 175.9 | 206.6 |
Inventories carried at LIFO: | ||
Inventory [Line Items] | ||
Finished goods | 74.7 | 85 |
Raw materials and work-in-process | 38.5 | 46.4 |
Inventories carried at FIFO: | ||
Inventory [Line Items] | ||
Finished goods | 52.8 | 68.9 |
Raw materials and work-in-process | $ 57.6 | $ 56 |
Property, Plant and Equipment -
Property, Plant and Equipment - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 491,700 | $ 459,200 |
Less: accumulated depreciation | (304,000) | (279,300) |
Property, plant and equipment, net | 187,700 | 179,900 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 21,000 | 22,000 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 137,600 | 149,000 |
Machinery and manufacturing equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 209,500 | 171,100 |
Office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 116,000 | 107,700 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 7,600 | $ 9,400 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 36.4 | $ 32.8 | $ 33.1 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill impairment loss | $ 0 | $ 0 | |
Amortization expense | $ 14,700,000 | $ 15,900,000 | $ 20,000,000 |
Customer Lists | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets disposal | 900,000 | ||
Trade Names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets disposal | $ 1,400,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 218.8 | $ 233.9 |
Beginning balance, accumulated impairment losses | (36.8) | (40.8) |
Beginning balance, net | 182 | 193.1 |
Foreign currency fluctuations | 1.9 | (15.1) |
Foreign currency fluctuations, accumulated impairment losses | 3.5 | 4 |
Foreign currency fluctuations, net | 5.4 | (11.1) |
Ending balance | 220.7 | 218.8 |
Ending balance, accumulated impairment losses | (33.3) | (36.8) |
Ending balance, net | $ 187.4 | $ 182 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Balances of Acquired Intangible Assets, Excluding Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | ||
Original cost | $ 196.2 | $ 191.1 |
Accumulated amortization | (133.1) | (114.7) |
Carrying amount | 63.1 | 76.4 |
Customer Lists | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original cost | 150.6 | 146.6 |
Accumulated amortization | (100.8) | (87.5) |
Carrying amount | $ 49.8 | $ 59.1 |
Weighted-average original life (in years) | 15 years | 15 years |
Trade Names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original cost | $ 29.3 | $ 28.6 |
Accumulated amortization | (19.2) | (15.9) |
Carrying amount | $ 10.1 | $ 12.7 |
Weighted-average original life (in years) | 11 years | 11 years |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original cost | $ 16.3 | $ 15.9 |
Accumulated amortization | (13.1) | (11.3) |
Carrying amount | $ 3.2 | $ 4.6 |
Weighted-average original life (in years) | 11 years | 11 years |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Estimated Aggregate Amortization Expense (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |
2024 | $ 13.4 |
2025 | 12 |
2026 | 10.7 |
2027 | 7.3 |
2028 | 5.6 |
Thereafter | 14.1 |
Total | $ 63.1 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||||
Nov. 10, 2022 | Apr. 05, 2021 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Debt Instrument [Line Items] | ||||||
Debt extinguishment payment | $ 0 | $ 0 | $ 8,400,000 | |||
Cross-currency swap instruments, net | 5% | |||||
The 2021 Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Collateral, percentage of stock of first tier foreign subsidiaries | 65% | |||||
Dividend payments | $ 7,500,000 | |||||
EBITDA ratio, maximum | 3.50 | |||||
Permitted acquisitions | $ 50,000,000 | |||||
Maximum EBITDA to interest expense ratio | 3 | |||||
Leverage ratio minimum | 2.50 | |||||
Dividends payout | $ 60,000,000 | |||||
Letters of credit outstanding | $ 3,200,000 | |||||
Commitment fees on unused lines of credit | 500,000 | |||||
The 2021 Credit Agreement | Secured Overnight Financing Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.10% | |||||
The 2021 Credit Agreement | SOFR on Eurocurrency Liabilities | ||||||
Debt Instrument [Line Items] | ||||||
Variable rate floor | 0% | |||||
The 2021 Credit Agreement | Fed Funds Effective Rate Overnight Index Swap Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.50% | |||||
The 2021 Credit Agreement | Adjusted Secured Overnight Financing Rate | ||||||
Debt Instrument [Line Items] | ||||||
Variable rate floor | 1% | |||||
The 2021 Credit Agreement | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Other restricted payments | 60,000,000 | |||||
The 2021 Credit Agreement | Minimum | SOFR on Eurocurrency Liabilities | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.10% | |||||
The 2021 Credit Agreement | Minimum | Adjusted Secured Overnight Financing Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.10% | |||||
The 2021 Credit Agreement | Maximum | SOFR on Eurocurrency Liabilities | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.70% | |||||
The 2021 Credit Agreement | Maximum | Adjusted Secured Overnight Financing Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.70% | |||||
The 2021 Credit Agreement | Revolving credit facility borrowings | ||||||
Debt Instrument [Line Items] | ||||||
Revolving credit facility | 450,000,000 | |||||
Credit facility | $ 275,000,000 | |||||
Outstanding borrowings | 110,000,000 | 205,000,000 | ||||
Unused borrowing capacity | 336,800,000 | |||||
The 2021 Credit Agreement | Revolving credit facility borrowings | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fee (as a percent) | 0.15% | |||||
The 2021 Credit Agreement | Revolving credit facility borrowings | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fee (as a percent) | 0.30% | |||||
The 2021 Credit Agreement | Term loan facility borrowings | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding principal amount | $ 100,000,000 | |||||
Outstanding borrowings | $ 90,000,000 | $ 95,000,000 | ||||
Senior Unsecured Notes | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding principal amount | $ 300,000,000 | |||||
Principal amount stated percentage | 5.625% | |||||
Debt extinguishment cost | $ 2,900,000 | |||||
Senior Unsecured Notes | Debt Redemption Call Premium | ||||||
Debt Instrument [Line Items] | ||||||
Debt extinguishment payment | $ 8,400,000 | |||||
Debt Including Related Cross-currency Swap Instrument | ||||||
Debt Instrument [Line Items] | ||||||
Weighted average cost of debt | 6.50% |
Debt - Debt Outstanding (Detail
Debt - Debt Outstanding (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Finance lease liabilities | $ 0.6 | $ 0.3 |
Total debt | 200.6 | 300.3 |
Less: current portion of long-term debt | (6.4) | (5.2) |
Long-term debt | 194.2 | 295.1 |
Secured borrowings current maturities | 0.1 | |
The 2021 Credit Agreement | ||
Debt Instrument [Line Items] | ||
Repayment of outstanding credit facility borrowings | 6.3 | |
The 2021 Credit Agreement | Term loan facility borrowings | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings | 90 | 95 |
The 2021 Credit Agreement | Revolving credit facility borrowings | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings | $ 110 | $ 205 |
Debt - Debt Maturities (Details
Debt - Debt Maturities (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Debt Disclosure [Abstract] | |
2024 | $ 6.4 |
2025 | 9.2 |
2026 | 185 |
2027 | 0 |
2028 | 0 |
Thereafter | 0 |
Total aggregate maturities | $ 200.6 |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Taxes | $ 11.3 | $ 11.1 |
Warranty reserve | 7.4 | 7.8 |
Deferred revenue | 7.9 | 6.6 |
Customer sales incentives | 21.3 | 20 |
Freight | 3.9 | 6.4 |
Restructuring | 2.4 | 1.7 |
Operating leases | 14.4 | 15 |
Miscellaneous accrued expenses | 20 | 17.7 |
Total other current liabilities | $ 88.6 | $ 86.3 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) € in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2023 USD ($) | Dec. 31, 2023 EUR (€) | Dec. 31, 2023 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 EUR (€) | Dec. 01, 2022 EUR (€) | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivate gains to be reclassified within the next twelve months | $ | $ 3 | |||||
Foreign currency forward exchange contracts | Derivatives not designated as hedging instruments: | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative notional amount | $ | $ 73 | $ 83.7 | ||||
Interest rate swaps | Derivatives designated as hedging instruments | Derivatives designated as cash flow hedges: | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative notional amount | € 120 | |||||
Fixed interest rate | 4.076% | |||||
Cross-currency swaps | Derivatives designated as hedging instruments | Derivatives designated as fair value hedges: | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative notional amount | € 75 | |||||
Debt instrument, periodic payment, interest | € 7.5 | |||||
Debt instrument, periodic payment, principal | € 82.5 | |||||
Cross-currency swaps | Derivatives designated as hedging instruments | Derivatives designated as net investment hedges: | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative notional amount | € 75 |
Derivatives - Fair Value of Der
Derivatives - Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Derivatives designated as hedging instruments | Interest rate swaps | Derivatives designated as cash flow hedges: | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 0.8 | $ 0.8 |
Derivative Liabilities | 0 | |
Derivative other asset, before offset | 0 | 0 |
Derivative other liability, asset offset | 1.9 | 1.8 |
Derivatives designated as hedging instruments | Cross-currency swaps | Derivatives designated as fair value hedges: | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 1.3 | 1.4 |
Derivative Liabilities | 0 | |
Derivative other asset, before offset | 0 | 0.8 |
Derivative other liability, asset offset | 3.3 | 0 |
Derivatives designated as hedging instruments | Cross-currency swaps | Derivatives designated as net investment hedges: | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 1.2 | 1.2 |
Derivative Liabilities | 0 | |
Derivative other asset, before offset | 0 | 0.5 |
Derivative other liability, asset offset | 3.4 | 0 |
Derivatives not designated as hedging instruments: | Foreign currency forward exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0 | 0.1 |
Derivative Liabilities | $ 1.6 | $ 0.3 |
Derivatives - Effect of Derivat
Derivatives - Effect of Derivative Instruments on Consolidated Statements of Earnings (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||
Net sales | $ 1,243.6 | $ 1,092.2 | $ 1,090.8 |
Interest expense, net | (13.5) | (7.1) | (7.3) |
Net foreign currency transaction gain (loss) | 0.3 | (1.2) | (0.7) |
Net gain (loss) recognized in other comprehensive (loss) income, net of tax | (1.4) | 0.8 | (0.5) |
Net loss reclassified from accumulated other comprehensive loss into income, net of tax, effective portion to net sales | 1,243.6 | 1,092.2 | 1,090.8 |
Net gain (loss) reclassified from accumulated other comprehensive loss into income, net of tax, effective portion to net foreign currency transaction losses | 0.3 | (1.2) | (0.7) |
Derivatives designated as hedging instruments | Derivatives designated as cash flow hedges: | |||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||
Net sales | 1,243.6 | 1,092.2 | |
Interest expense, net | (13.5) | (7.1) | |
Net foreign currency transaction gain (loss) | 0.3 | (1.2) | |
Net loss reclassified from accumulated other comprehensive loss into income, net of tax, effective portion to net sales | 1,243.6 | 1,092.2 | |
Net gain (loss) reclassified from accumulated other comprehensive loss into income, net of tax, effective portion to net foreign currency transaction losses | 0.3 | (1.2) | |
Derivatives designated as hedging instruments | Derivatives designated as cash flow hedges: | Net sales | |||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||
Amount of Gain (Loss) on Cash Flow Hedge Activity | 0 | 0 | |
Derivatives designated as hedging instruments | Derivatives designated as cash flow hedges: | Interest expense, net | |||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||
Amount of Gain (Loss) on Cash Flow Hedge Activity | 0.9 | 0.7 | |
Derivatives designated as hedging instruments | Derivatives designated as cash flow hedges: | Net foreign currency transaction loss | |||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||
Amount of Gain (Loss) on Cash Flow Hedge Activity | 0 | 4.7 | |
Derivatives designated as hedging instruments | Derivatives designated as cash flow hedges: | Foreign Exchange Option | |||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||
Net sales | 0 | 0 | (0.3) |
Net foreign currency transaction gain (loss) | 0 | 3.6 | 9.7 |
Net gain (loss) recognized in other comprehensive (loss) income, net of tax | 0.6 | 3.1 | 10.8 |
Net loss reclassified from accumulated other comprehensive loss into income, net of tax, effective portion to net sales | 0 | 0 | (0.3) |
Net gain (loss) reclassified from accumulated other comprehensive loss into income, net of tax, effective portion to net foreign currency transaction losses | 0 | 3.6 | 9.7 |
Net gain reclassified from accumulated other comprehensive loss into income, net of tax, effective portion to interest income expenses | 2 | 0.5 | 1.9 |
Derivatives designated as hedging instruments | Derivatives designated as fair value hedges: | |||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||
Interest expense, net | (13.5) | (7.1) | |
Net foreign currency transaction gain (loss) | 0.3 | (1.2) | |
Net gain (loss) reclassified from accumulated other comprehensive loss into income, net of tax, effective portion to net foreign currency transaction losses | 0.3 | (1.2) | |
Derivatives designated as hedging instruments | Derivatives designated as fair value hedges: | Interest expense, net | |||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||
Amount of Gain (Loss) on Cash Flow Hedge Activity | 1.1 | 0.9 | |
Derivatives designated as hedging instruments | Derivatives designated as fair value hedges: | Net foreign currency transaction loss | |||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||
Amount of Gain (Loss) on Cash Flow Hedge Activity | (1.9) | 2 | |
Derivatives designated as hedging instruments | Derivatives designated as fair value hedges: | Foreign Exchange Option | |||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||
Net gain (loss) recognized in other comprehensive (loss) income, net of tax | 0 | 2.7 | 0 |
Net gain reclassified from accumulated other comprehensive loss into income, net of tax, effective portion to interest income expenses | 0 | 0.9 | 0 |
Derivatives designated as hedging instruments | Derivatives designated as net investment hedges: | |||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||
Interest expense, net | (13.5) | (7.1) | |
Derivatives designated as hedging instruments | Derivatives designated as net investment hedges: | Interest expense, net | |||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||
Amount of Gain (Loss) on Cash Flow Hedge Activity | 1 | 0.7 | |
Derivatives designated as hedging instruments | Derivatives designated as net investment hedges: | Foreign Exchange Option | |||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||
Net gain (loss) recognized in other comprehensive (loss) income, net of tax | 2 | 4.2 | 0 |
Net gain reclassified from accumulated other comprehensive loss into income, net of tax, effective portion to interest income expenses | 1 | 0.7 | 0 |
Derivatives not designated as hedging instruments: | Foreign Exchange Option | |||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||
Net gain (loss) recognized in income | $ 1.7 | $ 1 | $ 2.5 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Subject to Fair Value Measurements (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | $ 3.3 | $ 4.8 |
Total liabilities | 10.2 | 2.1 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | 3.3 | 4.8 |
Total liabilities | 10.2 | 2.1 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | 0 | 0 |
Total liabilities | 0 | 0 |
Cross-currency swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | 2.5 | 3.9 |
Derivative liability | 6.7 | |
Cross-currency swaps | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | |
Cross-currency swaps | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | 2.5 | 3.9 |
Derivative liability | 6.7 | |
Cross-currency swaps | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | |
Foreign currency forward exchange contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Foreign currency forward exchange contracts | 0.1 | |
Foreign currency forward exchange contracts | 1.6 | 0.3 |
Foreign currency forward exchange contracts | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Foreign currency forward exchange contracts | 0 | |
Foreign currency forward exchange contracts | 0 | 0 |
Foreign currency forward exchange contracts | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Foreign currency forward exchange contracts | 0.1 | |
Foreign currency forward exchange contracts | 1.6 | 0.3 |
Foreign currency forward exchange contracts | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Foreign currency forward exchange contracts | 0 | |
Foreign currency forward exchange contracts | 0 | 0 |
Interest rate swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | 0.8 | 0.8 |
Derivative liability | 1.9 | 1.8 |
Interest rate swaps | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | 0 |
Interest rate swaps | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | 0.8 | 0.8 |
Derivative liability | 1.9 | 1.8 |
Interest rate swaps | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Contingent consideration payments | $ 0 | $ 0 | $ 2.5 |
Fair value of total debt | 198.2 | ||
Carrying value of total debt | $ 200.6 | $ 300.3 | |
Gaomei | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Contingent consideration payments | $ 2.5 |
Retirement Benefit Plans - Narr
Retirement Benefit Plans - Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2018 | |
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||
Total cost of benefits | $ 16,600,000 | $ 11,600,000 | $ 14,800,000 | |
Plan assets, amount | 0 | |||
Matching contribution, percent | 3% | |||
Minimum service period required to be eligible | 1 year | |||
Cost | $ 10,500,000 | 6,000,000 | 8,700,000 | |
UNITED STATES | ||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||
Plan assets, amount | 0 | 0 | 0 | |
Expected future employer contributions | 100,000 | |||
Non-U.S. Plan | Pension Plan | ||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||
Plan assets, amount | 12,700,000 | $ 11,300,000 | $ 12,900,000 | |
Expected future employer contributions | 200,000 | |||
U.K. Pension Plan | Non-U.S. Plan | Pension Plan | ||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||
Curtailment gain | $ 100,000 | |||
Retiree Plan | UNITED STATES | ||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||
Expected future employer contributions | $ 600,000 |
Retirement Benefit Plans - Weig
Retirement Benefit Plans - Weighted-average Asset Allocations by Asset Category (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan, Plan Assets, Category [Line Items] | |||
Plan assets, amount | $ 0 | ||
Non-U.S. Plan | Pension Plan | |||
Defined Benefit Plan, Plan Assets, Category [Line Items] | |||
Plan assets, amount | $ 12,700,000 | 11,300,000 | $ 12,900,000 |
Non-U.S. Plan | Pension Plan | Level 1 | |||
Defined Benefit Plan, Plan Assets, Category [Line Items] | |||
Plan assets, amount | 0 | 0 | |
Non-U.S. Plan | Pension Plan | Level 2 | |||
Defined Benefit Plan, Plan Assets, Category [Line Items] | |||
Plan assets, amount | 0 | 0 | |
Non-U.S. Plan | Pension Plan | Level 3 | |||
Defined Benefit Plan, Plan Assets, Category [Line Items] | |||
Plan assets, amount | 12,700,000 | 11,300,000 | |
Investment Account Held by Pension Plan | Non-U.S. Plan | Pension Plan | |||
Defined Benefit Plan, Plan Assets, Category [Line Items] | |||
Plan assets, amount | 12,700,000 | 11,300,000 | |
Investment Account Held by Pension Plan | Non-U.S. Plan | Pension Plan | Level 1 | |||
Defined Benefit Plan, Plan Assets, Category [Line Items] | |||
Plan assets, amount | 0 | 0 | |
Investment Account Held by Pension Plan | Non-U.S. Plan | Pension Plan | Level 2 | |||
Defined Benefit Plan, Plan Assets, Category [Line Items] | |||
Plan assets, amount | 0 | 0 | |
Investment Account Held by Pension Plan | Non-U.S. Plan | Pension Plan | Level 3 | |||
Defined Benefit Plan, Plan Assets, Category [Line Items] | |||
Plan assets, amount | $ 12,700,000 | $ 11,300,000 |
Retirement Benefit Plans - Reco
Retirement Benefit Plans - Reconciliation of Level 3 Investments (Details) - U.K. Pension Plan - Non-U.S. Plan - Pension Plan - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value at beginning of year | $ 12.7 | $ 11.3 | $ 12.9 |
Purchases, sales, issuances and settlements, net | (0.3) | (0.3) | |
Net (loss) gain | 1.1 | 0.1 | |
Foreign currency | 0.6 | (1.4) | |
Fair value at end of year | $ 12.7 | $ 11.3 |
Retirement Benefit Plans - We_2
Retirement Benefit Plans - Weighted-average Assumptions Used (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Postretirement Medical Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 5.06% | 5.37% | |
Rate of compensation increase | 0% | 0% | |
Discount rate | 5.37% | 2.53% | 2.07% |
Expected long-term rate of return on plan assets | 0% | 0% | 0% |
Rate of compensation increase | 0% | 0% | 0% |
UNITED STATES | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 5.07% | 5.37% | |
Rate of compensation increase | 0% | 0% | |
Discount rate | 5.37% | 2.54% | 2.06% |
Expected long-term rate of return on plan assets | 0% | 0% | 0% |
Rate of compensation increase | 0% | 0% | 0% |
Non-U.S. Plan | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 4.26% | 1.05% | |
Rate of compensation increase | 3% | 2.25% | |
Discount rate | 4.68% | 1.55% | 1.05% |
Expected long-term rate of return on plan assets | 6.10% | 3.20% | 2.70% |
Rate of compensation increase | 2.25% | 1.50% | 0% |
Retirement Benefit Plans - Accu
Retirement Benefit Plans - Accumulated Benefit Obligations (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
UNITED STATES | ||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||
Accumulated benefit obligation | $ 0.9 | $ 0.9 |
Non-U.S. Plan | U.K. Pension Plan | Pension Plan | ||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||
Accumulated benefit obligation | 6.2 | 6.5 |
Non-U.S. Plan | German Pension Plan | Pension Plan | ||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||
Accumulated benefit obligation | 1 | 0.7 |
Non-U.S. Plan | French Pension Plan | Pension Plan | ||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||
Accumulated benefit obligation | 0.4 | 0.5 |
Non-U.S. Plan | Italian Pension Plan | Pension Plan | ||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||
Accumulated benefit obligation | $ 2.5 | $ 2.4 |
Retirement Benefit Plans - Info
Retirement Benefit Plans - Information for Plans With Accumulated Benefit Obligation in Excess of Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Retirement Benefits [Abstract] | ||
Accumulated benefit obligation | $ 4.8 | $ 4.5 |
Fair value of plan assets | $ 0 | $ 0 |
Retirement Benefit Plans - In_2
Retirement Benefit Plans - Information for Plans with Projected Benefit Obligation in Excess of Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Retirement Benefits [Abstract] | ||
Projected benefit obligation | $ 5 | $ 4.7 |
Fair value of plan assets | $ 0 | $ 0 |
Retirement Benefit Plans - Assu
Retirement Benefit Plans - Assumed Healthcare Trend Rates (Details) - Postretirement Medical Benefits | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 4% | 4% |
Year that the rate reaches the ultimate trend rate | 2047 | 2045 |
Healthcare cost trend rate assumption for the next year Pre-65 | ||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||
Healthcare cost trend rate assumption | 8% | 5.30% |
Healthcare cost trend rate assumption for the next year Post-65 | ||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||
Healthcare cost trend rate assumption | 8.80% | 5.80% |
Retirement Benefit Plans - Chan
Retirement Benefit Plans - Changes in Benefit Obligations and Plan Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Change in fair value of plan assets and net accrued liabilities: | |||
Fair value of plan assets at beginning of year | $ 0 | ||
Fair value of plan assets at end of year | $ 0 | ||
Postretirement Medical Benefits | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 4,600,000 | 5,400,000 | $ 7,000,000 |
Plan combinations | 0 | 0 | |
Service cost | 0 | 0 | 100,000 |
Interest cost | 300,000 | 200,000 | 100,000 |
Actuarial (gain) loss | (700,000) | (1,100,000) | |
Foreign exchange | 0 | 0 | |
Settlement | 0 | 0 | |
Benefits paid | (400,000) | (700,000) | |
Benefit obligation at end of year | 4,600,000 | 5,400,000 | 7,000,000 |
Change in fair value of plan assets and net accrued liabilities: | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 400,000 | 700,000 | |
Foreign exchange | 0 | 0 | |
Settlement | 0 | 0 | |
Benefits paid | (400,000) | (700,000) | |
Fair value of plan assets at end of year | 0 | 0 | 0 |
Funded status at end of year | (4,600,000) | (5,400,000) | |
Noncurrent other assets | 0 | 0 | |
Current liabilities | (600,000) | (700,000) | |
Long-term liabilities | (4,000,000) | (4,700,000) | |
Net accrued liability | (4,600,000) | (5,400,000) | |
Prior service cost | 0 | 0 | |
Net actuarial (loss) gain | 1,800,000 | 1,300,000 | |
Accumulated other comprehensive (loss) income | 1,800,000 | 1,300,000 | |
UNITED STATES | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 900,000 | 900,000 | 1,100,000 |
Plan combinations | 0 | 0 | |
Service cost | 0 | 0 | |
Interest cost | 0 | 0 | |
Actuarial (gain) loss | 100,000 | (100,000) | |
Foreign exchange | 0 | 0 | |
Settlement | 0 | 0 | |
Benefits paid | (100,000) | (100,000) | |
Benefit obligation at end of year | 900,000 | 900,000 | 1,100,000 |
Change in fair value of plan assets and net accrued liabilities: | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 100,000 | 100,000 | |
Foreign exchange | 0 | 0 | |
Settlement | 0 | 0 | |
Benefits paid | (100,000) | (100,000) | |
Fair value of plan assets at end of year | 0 | 0 | 0 |
Funded status at end of year | (900,000) | (900,000) | |
Noncurrent other assets | 0 | 0 | |
Current liabilities | (100,000) | (100,000) | |
Long-term liabilities | (800,000) | (800,000) | |
Net accrued liability | (900,000) | (900,000) | |
Prior service cost | 0 | 0 | |
Net actuarial (loss) gain | (700,000) | (700,000) | |
Accumulated other comprehensive (loss) income | (700,000) | (700,000) | |
UNITED STATES | Pension Plan | |||
Change in benefit obligation: | |||
Service cost | 0 | 0 | 0 |
Interest cost | 0 | 0 | 100,000 |
Non-U.S. Plan | Pension Plan | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 10,400,000 | 10,300,000 | 16,200,000 |
Plan combinations | 0 | 1,000,000 | |
Service cost | 100,000 | 300,000 | 0 |
Interest cost | 500,000 | 200,000 | 200,000 |
Actuarial (gain) loss | (300,000) | (5,100,000) | |
Foreign exchange | 500,000 | (1,600,000) | |
Settlement | 0 | 0 | |
Benefits paid | (700,000) | (700,000) | |
Benefit obligation at end of year | 10,400,000 | 10,300,000 | 16,200,000 |
Change in fair value of plan assets and net accrued liabilities: | |||
Fair value of plan assets at beginning of year | 11,300,000 | 12,900,000 | |
Actual return on plan assets | 1,100,000 | 100,000 | |
Employer contributions | 300,000 | 400,000 | |
Foreign exchange | 600,000 | (1,400,000) | |
Settlement | 0 | 0 | |
Benefits paid | (600,000) | (700,000) | |
Fair value of plan assets at end of year | 12,700,000 | 11,300,000 | $ 12,900,000 |
Funded status at end of year | 2,300,000 | 1,000,000 | |
Noncurrent other assets | 6,500,000 | 4,800,000 | |
Current liabilities | (300,000) | (200,000) | |
Long-term liabilities | (3,900,000) | (3,600,000) | |
Net accrued liability | 2,300,000 | 1,000,000 | |
Prior service cost | (100,000) | (100,000) | |
Net actuarial (loss) gain | 3,600,000 | 2,800,000 | |
Accumulated other comprehensive (loss) income | $ 3,500,000 | $ 2,700,000 |
Retirement Benefit Plans - Comp
Retirement Benefit Plans - Components of Net Periodic Benefit Cost (Credit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Postretirement Medical Benefits | |||
Defined Benefit Plan, Plan Assets, Category [Line Items] | |||
Service cost | $ 0 | $ 0 | $ 0.1 |
Interest cost | 0.3 | 0.2 | 0.1 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of net actuarial loss | (0.2) | 0 | 0 |
Net periodic benefit cost (credit) | 0.1 | 0.2 | 0.2 |
UNITED STATES | |||
Defined Benefit Plan, Plan Assets, Category [Line Items] | |||
Service cost | 0 | 0 | |
Interest cost | 0 | 0 | |
UNITED STATES | Pension Plan | |||
Defined Benefit Plan, Plan Assets, Category [Line Items] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 0 | 0 | 0.1 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of net actuarial loss | 0.1 | 0.1 | 0 |
Net periodic benefit cost (credit) | 0.1 | 0.1 | 0.1 |
Non-U.S. Plan | Pension Plan | |||
Defined Benefit Plan, Plan Assets, Category [Line Items] | |||
Service cost | 0.1 | 0.3 | 0 |
Interest cost | 0.5 | 0.2 | 0.2 |
Expected return on plan assets | (0.7) | (0.4) | (0.4) |
Amortization of net actuarial loss | (0.1) | 0 | 0.1 |
Net periodic benefit cost (credit) | $ (0.2) | $ 0.1 | $ (0.1) |
Retirement Benefit Plans - Ch_2
Retirement Benefit Plans - Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Postretirement Medical Benefits | |||
Defined Benefit Plan, Plan Assets, Category [Line Items] | |||
Prior service cost | $ 0 | $ 0 | $ 0 |
Net actuarial (gain) loss | (0.7) | (1.1) | 0.6 |
Amortization of net actuarial (loss) gain | 0.2 | 0 | 0 |
Total recognized in other comprehensive (income) loss | (0.5) | (1.1) | 0.6 |
Total recognized in net benefit (credit) cost and other comprehensive (income) loss | (0.4) | (0.9) | 0.8 |
UNITED STATES | Pension Plan | |||
Defined Benefit Plan, Plan Assets, Category [Line Items] | |||
Prior service cost | 0 | 0 | 0 |
Net actuarial (gain) loss | 0.1 | (0.1) | 0 |
Amortization of net actuarial (loss) gain | (0.1) | (0.1) | 0 |
Total recognized in other comprehensive (income) loss | 0 | (0.2) | 0 |
Total recognized in net benefit (credit) cost and other comprehensive (income) loss | 0.1 | (0.1) | 0.1 |
Non-U.S. Plan | Pension Plan | |||
Defined Benefit Plan, Plan Assets, Category [Line Items] | |||
Prior service cost | 0 | 0 | 0 |
Net actuarial (gain) loss | (0.9) | (5) | 0.2 |
Amortization of net actuarial (loss) gain | 0.1 | 0 | (0.1) |
Total recognized in other comprehensive (income) loss | (0.8) | (5) | 0.1 |
Total recognized in net benefit (credit) cost and other comprehensive (income) loss | $ (1) | $ (4.9) | $ 0 |
Retirement Benefit Plans - Bene
Retirement Benefit Plans - Benefit Payments Expected to be Paid (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Postretirement Medical Benefits | |
Defined Benefit Plan, Plan Assets, Category [Line Items] | |
2024 | $ 0.6 |
2025 | 0.5 |
2026 | 0.5 |
2027 | 0.5 |
2028 | 0.5 |
2028 to 2031 | 2 |
Total | 4.6 |
UNITED STATES | |
Defined Benefit Plan, Plan Assets, Category [Line Items] | |
2024 | 0.1 |
2025 | 0.1 |
2026 | 0.1 |
2027 | 0.1 |
2028 | 0.1 |
2028 to 2031 | 0.3 |
Total | 0.8 |
Non-U.S. Plan | Pension Plan | |
Defined Benefit Plan, Plan Assets, Category [Line Items] | |
2024 | 0.6 |
2025 | 0.6 |
2026 | 0.6 |
2027 | 0.6 |
2028 | 0.6 |
2028 to 2031 | 3.7 |
Total | $ 6.7 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Oct. 31, 2016 | |
Stockholders' Equity Note [Abstract] | ||||
Common stock, shares authorized (in shares) | 60,000,000 | 60,000,000 | ||
Common stock, par value (in dollars per share) | $ 0.375 | $ 0.375 | ||
Number of shares authorized to be repurchased (in shares) | 821,413 | 1,000,000 | ||
Repurchases of common stock | $ 21,700,000 | $ 5,000,000 | $ 15,000,000 | |
Repurchases of common stock (in shares) | 290,920 | 79,756 | ||
Average cost per share (in dollars per share) | $ 74.57 | |||
Remaining authorized repurchase amount (in shares) | $ 821,413 |
Shareholders' Equity - Accumula
Shareholders' Equity - Accumulated Other Comprehensive Loss, Net of Tax (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | $ 472.1 | $ 435.1 | $ 406.1 |
Total other comprehensive income (loss), net of tax | 7.9 | (12.3) | (17.8) |
Ending balance | 578.3 | 472.1 | 435.1 |
Total | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (50.2) | (37.9) | |
Other comprehensive (loss) income before reclassifications | 10.9 | (6.6) | |
Amounts reclassified from accumulated other comprehensive loss | (3) | (5.7) | |
Total other comprehensive income (loss), net of tax | 7.9 | (12.3) | |
Ending balance | (42.3) | (50.2) | (37.9) |
Foreign Currency Translation Adjustments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (53.9) | (36) | |
Other comprehensive (loss) income before reclassifications | 9.3 | (17.2) | |
Amounts reclassified from accumulated other comprehensive loss | (1) | (0.7) | |
Total other comprehensive income (loss), net of tax | 8.3 | (17.9) | |
Ending balance | (45.6) | (53.9) | (36) |
Pension and Postretirement Medical Benefits | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | 2.7 | (2.1) | |
Other comprehensive (loss) income before reclassifications | 1 | 4.8 | |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | |
Total other comprehensive income (loss), net of tax | 1 | 4.8 | |
Ending balance | 3.7 | 2.7 | (2.1) |
Derivative Financial Instruments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | 1 | 0.2 | |
Other comprehensive (loss) income before reclassifications | 0.6 | 5.8 | |
Amounts reclassified from accumulated other comprehensive loss | (2) | (5) | |
Total other comprehensive income (loss), net of tax | (1.4) | 0.8 | |
Ending balance | $ (0.4) | $ 1 | $ 0.2 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Leases [Abstract] | |
Aggregate residual value at lease expiration for vehicle leases | $ 14.6 |
Guarantor obligations | $ 8.1 |
Leases - Lease Assets and Liabi
Leases - Lease Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Operating lease assets | $ 41.7 | $ 31.8 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, plant and equipment, less accumulated depreciation of $304.0 and $279.3, respectively | Property, plant and equipment, less accumulated depreciation of $304.0 and $279.3, respectively |
Finance lease assets | $ 0.6 | $ 0.2 |
Total leased assets | $ 42.3 | $ 32 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities |
Operating leases | $ 14.4 | $ 15 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Current portion of long-term debt | Current portion of long-term debt |
Finance | $ 0.1 | $ 0 |
Long-term operating lease liabilities | $ 27.4 | $ 17.1 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term debt | Long-term debt |
Finance | $ 0.5 | $ 0.1 |
Total lease liabilities | 42.4 | 32.2 |
Finance lease asset, net of accumulated amortization | $ 0.1 | $ 0.1 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Operating lease cost | $ 28.9 | $ 26.2 | $ 26.6 |
Finance lease cost | 0.1 | 0.1 | 0.1 |
Total lease cost | 29 | 26.3 | $ 26.7 |
Short-term lease cost | 5.9 | 4.8 | |
Variable lease cost | $ 4.2 | $ 3.3 |
Leases - Maturity of Lease Liab
Leases - Maturity of Lease Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Operating Leases | ||
2024 | $ 16 | |
2025 | 11.6 | |
2026 | 8.2 | |
2027 | 4.6 | |
2028 | 3.3 | |
Thereafter | 3 | |
Total lease payments | 46.7 | |
Less: Interest | (4.9) | |
Present value of lease liabilities | 41.8 | |
Finance Leases | ||
2024 | 0.2 | |
2025 | 0.2 | |
2026 | 0.1 | |
2027 | 0.1 | |
2028 | 0.1 | |
Thereafter | 0 | |
Total lease payments | 0.7 | |
Less: Interest | (0.1) | |
Present value of lease liabilities | 0.6 | $ 0.3 |
Total | ||
2024 | 16.2 | |
2025 | 11.8 | |
2026 | 8.3 | |
2027 | 4.7 | |
2028 | 3.4 | |
Thereafter | 3 | |
Total lease payments | 47.4 | |
Less: Interest | (5) | |
Total lease liabilities | $ 42.4 | $ 32.2 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Weighted-average remaining lease term (years): | ||
Operating leases | 3 years 9 months 18 days | 2 years 10 months 24 days |
Finance leases | 4 years 8 months 12 days | 4 years 1 month 6 days |
Weighted-average discount rate: | ||
Operating leases | 6% | 3.90% |
Finance leases | 6% | 2.50% |
Leases - Other Information (Det
Leases - Other Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 18.9 | $ 18.2 |
Financing cash flows from finance leases | 0.1 | 0.1 |
Lease assets obtained in exchange for new finance lease liabilities | 0.7 | 0.3 |
Lease assets obtained in exchange for new operating lease liabilities | $ 18.8 | $ 11.4 |
Income Taxes - Income Before In
Income Taxes - Income Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
U.S. operations | $ 94.2 | $ 58.9 | $ 47.5 |
Foreign operations | 29.6 | 20.6 | 26.6 |
Income before income taxes | $ 123.8 | $ 79.5 | $ 74.1 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | |||
Federal | $ 28.7 | $ 17.1 | $ 11.1 |
Foreign | 8.5 | 7.9 | 11.2 |
State | 4 | 3.8 | 1.9 |
Total current | 41.2 | 28.8 | 24.2 |
Deferred: | |||
Federal | (8.7) | (6.3) | 0.6 |
Foreign | (17.3) | (8.5) | (15.5) |
State | (0.9) | (0.8) | (0.1) |
Total deferred | (26.9) | (15.6) | (15) |
Total: | |||
Federal | 20 | 10.8 | 11.7 |
Foreign | (8.8) | (0.6) | (4.3) |
State | 3.1 | 3 | 1.8 |
Total income tax expense | $ 14.3 | $ 13.2 | $ 9.2 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Contingency [Line Items] | |||
Undistributed earnings of foreign subsidiaries | $ 102.5 | ||
Undistributed foreign earnings, deferred tax liability reduction, percent | 12% | 7.20% | |
U.S. federal and state tax credits | $ 3.7 | $ 3.6 | |
Operating loss carryforwards, tax effected | 6.9 | 8 | |
Net valuation allowance release | 0.1 | ||
Unrecognized tax benefits | 3.7 | 3.9 | |
Unrecognized tax benefits, ending balance | 4.1 | 4.2 | $ 4.7 |
Unrecognized tax benefits, income tax penalties and interest accrued | $ 0.5 | $ 0.6 | |
Minimum | |||
Income Tax Contingency [Line Items] | |||
Open tax year, term (Year) | 3 years | ||
Maximum | |||
Income Tax Contingency [Line Items] | |||
Open tax year, term (Year) | 5 years | ||
U.S. Federal and State Tax Credits | |||
Income Tax Contingency [Line Items] | |||
U.S. federal and state tax credits | $ 3 | ||
Foreign Tax Authority | |||
Income Tax Contingency [Line Items] | |||
Non-U.S. cumulative tax losses | 26 | ||
Operating loss carryforwards, tax effected | 6.9 | ||
Cumulative losses | 26 | ||
Limited carryforward period of losses | 0.1 | ||
Foreign Tax Authority | Netherlands Tax Credits | |||
Income Tax Contingency [Line Items] | |||
Netherlands tax credits | $ 1.3 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Tax at statutory rate | 21% | 21% | 21% |
Increases (decreases) in the tax rate from: | |||
State and local taxes, net of federal benefit | 2.40% | 2.40% | 2.20% |
Effect of foreign operations | (10.90%) | (4.90%) | (6.30%) |
Effect of changes in valuation allowances | (0.20%) | (1.20%) | (4.50%) |
Excess tax benefits on share-based compensation | 1% | 1.10% | 1.80% |
Share-based payments | 0.10% | (0.40%) | (0.90%) |
Research and development credit | (1.30%) | (1.50%) | (1.40%) |
Other, net | (0.50%) | 0.10% | 0.60% |
Effective income tax rate | 11.60% | 16.60% | 12.50% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Inventory | $ 3.8 | $ 4.1 |
Compensation and employee benefits | 13.2 | 11.4 |
Warranty reserves | 2.4 | 2.3 |
Allowance for doubtful accounts and deferred revenue | 2.7 | 2.3 |
Operating lease liabilities | 9 | 5.9 |
Tax loss carryforwards | 6.9 | 8 |
Tax credit carryforwards | 3.7 | 3.6 |
Capitalized research and development costs | 12.3 | 6.6 |
Goodwill and intangible assets | 4.5 | 0 |
Other | 1.2 | (0.9) |
Gross deferred tax assets | 59.7 | 43.3 |
Less: valuation allowance | (3.2) | (3.3) |
Total net deferred tax assets | 56.5 | 40 |
Deferred tax liabilities: | ||
Operating lease assets | 9.5 | 6.1 |
Fixed assets | 9.5 | 11.2 |
Goodwill and intangible assets | 0 | 13.8 |
Total deferred tax liabilities | 19 | 31.1 |
Net deferred tax assets | $ 37.5 | $ 8.9 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Beginning balance | $ 4.2 | $ 4.7 |
(Decreases) as a result of tax positions taken during a prior period | 0 | (0.1) |
Increases as a result of tax positions taken during the current year | 1.2 | 0.8 |
Decreases relating to settlement with tax authorities | (0.2) | 0 |
Decreases as a result of a lapse of the applicable statute of limitations | (1.1) | (1) |
Decreases as a result of foreign currency fluctuations | 0 | (0.2) |
Ending balance | $ 4.1 | $ 4.2 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) plan $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Number of plans | plan | 5 | ||
Total share-based compensation expense | $ 11.6 | $ 7.8 | $ 9.5 |
Total excess tax benefit recognized for share-based compensation arrangements | $ 0.1 | $ 0.3 | $ 0.7 |
Weighted-average grant date fair value of stock options granted (in dollars per share) | $ / shares | $ 24.21 | $ 23.45 | $ 22.01 |
Total intrinsic value of stock options exercised | $ 5.9 | $ 0.4 | $ 3.9 |
Aggregate intrinsic value of options outstanding | 14.3 | ||
Aggregate intrinsic value of options exercisable | $ 12.5 | ||
Weighted-average remaining contractual life for options outstanding | 5 years 1 month 6 days | ||
Weighted-average remaining contractual life for options exercisable | 4 years 3 months 18 days | ||
Total share-based liabilities | $ 0.4 | 0.3 | |
Option | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
New stock option awards granted vest period | 3 years | ||
Contractual term | 10 years | ||
Unrecognized compensation cost for non-vested options | $ 1.5 | ||
Weighted-average period | 1 year 3 months 18 days | ||
Restricted Stock | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
New stock option awards granted vest period | 3 years | ||
Unrecognized compensation cost for non-vested options | $ 1.5 | ||
Weighted-average period | 1 year 8 months 12 days | ||
Required service period following grant date | 6 months | ||
Vesting rights, required advance notice for resignation, period | 6 months | ||
Total fair value of restricted shares vested | $ 0.4 | $ 1.7 | $ 1.2 |
Vested (in shares) | shares | 5,667 | ||
Restricted Stock | Year One | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Vesting percentage of awards granted | 33.33% | ||
Restricted Stock | Year Two | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Vesting percentage of awards granted | 33.33% | ||
Restricted Stock | Year Three | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Vesting percentage of awards granted | 33.33% | ||
Performance Shares | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
New stock option awards granted vest period | 3 years | ||
Unrecognized compensation cost for non-vested options | $ 7.8 | ||
Weighted-average period | 1 year 9 months 18 days | ||
Percentage of maximum increase in number of shares participant receives based on achievement of performance goals | 200% | ||
Potential lowest number of shares participant receives based on achievement of performance goals | 0% | ||
Vested (in shares) | shares | 32,130 | 43,198 | 43,621 |
Restricted Stock Units (RSUs) | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
New stock option awards granted vest period | 3 years | ||
Unrecognized compensation cost for non-vested options | $ 3.8 | ||
Weighted-average period | 1 year 6 months | ||
Total fair value of restricted shares vested | $ 3 | $ 0.5 | $ 3.2 |
Vested (in shares) | shares | 38,303 | ||
The 2010 Plan and the 2017 Plan | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Shares reserved for issuance (in shares) | shares | 1,111,646 | ||
The 2020 Plan | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Shares reserved for issuance (in shares) | shares | 975,475 |
Share-Based Compensation - Valu
Share-Based Compensation - Valuation Assumptions (Details) - Option | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Expected volatility | 35% | 34% | |
Expected volatility rate, minimum | 34% | ||
Expected volatility rate, maximum | 35% | ||
Weighted-average expected volatility | 35% | 34% | 35% |
Expected dividend yield | 1.60% | 1.20% | |
Expected term, in years | 5 years | 5 years | 5 years |
Risk free interest rate, minimum | 4.20% | 1.90% | 0.80% |
Risk free interest rate, maximum | 4.20% | 1.90% | 0.90% |
Minimum | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Expected dividend yield | 1.30% | ||
Maximum | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Expected dividend yield | 1.40% | ||
Weighted-average expected dividend yield | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Expected dividend yield | 1.60% | 1.20% | 1.40% |
Share-Based Compensation - Acti
Share-Based Compensation - Activity for Stock Option Awards (Details) | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Shares | |
Outstanding at beginning of year (in shares) | shares | 931,843 |
Granted (in shares) | shares | 60,492 |
Exercised (in shares) | shares | (338,787) |
Forfeited (in shares) | shares | (10,667) |
Expired (in shares) | shares | (450) |
Outstanding at end of year (in shares) | shares | 642,431 |
Exercisable at end of year (in shares) | shares | 534,335 |
Weighted-Average Exercise Price | |
Outstanding at beginning of year (in dollars per share) | $ / shares | $ 66.97 |
Granted (in dollars per share) | $ / shares | 72.88 |
Exercised (in dollars per share) | $ / shares | 61.17 |
Forfeited (in dollars per share) | $ / shares | 75.76 |
Expired (in dollars per share) | $ / shares | 71.70 |
Outstanding at end of year (in dollars per share) | $ / shares | 70.43 |
Exercisable at end of year (in dollars per share) | $ / shares | $ 69.33 |
Share-Based Compensation - Ac_2
Share-Based Compensation - Activity for Nonvested Share Awards (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restricted Stock | |||
Shares | |||
Nonvested at beginning of year (in shares) | 75,412 | ||
Granted (in shares) | 20,094 | ||
Vested (in shares) | (5,667) | ||
Forfeited (in shares) | (4,873) | ||
Nonvested at end of year (in shares) | 84,966 | 75,412 | |
Weighted-Average Grant Date Fair Value | |||
Nonvested at beginning of year (in dollars per share) | $ 62.94 | ||
Granted (in dollars per share) | 72.88 | ||
Vested (in dollars per share) | 78.57 | ||
Forfeitures (in dollars per share) | 76.48 | ||
Nonvested at end of year (in dollars per share) | $ 63.48 | $ 62.94 | |
Performance Shares | |||
Shares | |||
Nonvested at beginning of year (in shares) | 134,763 | ||
Granted (in shares) | 67,396 | ||
Vested (in shares) | (32,130) | (43,198) | (43,621) |
Forfeited (in shares) | (16,881) | ||
Nonvested at end of year (in shares) | 153,148 | 134,763 | |
Weighted-Average Grant Date Fair Value | |||
Nonvested at beginning of year (in dollars per share) | $ 78.29 | ||
Granted (in dollars per share) | 73.12 | ||
Vested (in dollars per share) | 77.27 | ||
Forfeitures (in dollars per share) | 76.45 | ||
Nonvested at end of year (in dollars per share) | $ 76.44 | $ 78.29 | |
Restricted Stock Units (RSUs) | |||
Shares | |||
Nonvested at beginning of year (in shares) | 114,704 | ||
Granted (in shares) | 59,034 | ||
Vested (in shares) | (38,303) | ||
Forfeited (in shares) | (6,216) | ||
Nonvested at end of year (in shares) | 129,219 | 114,704 | |
Weighted-Average Grant Date Fair Value | |||
Nonvested at beginning of year (in dollars per share) | $ 73.55 | ||
Granted (in dollars per share) | 77.59 | ||
Vested (in dollars per share) | 78.54 | ||
Forfeitures (in dollars per share) | 74.15 | ||
Nonvested at end of year (in dollars per share) | $ 73.89 | $ 73.55 |
Income Attributable to Tennan_3
Income Attributable to Tennant Company Per Share - Computations of Basic and Diluted Earnings (Loss) Attributable to Tennant Company Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator: | |||
Net income | $ 109.5 | $ 66.3 | $ 64.9 |
Denominator: | |||
Basic - weighted average shares outstanding (in shares) | 18,509,523 | 18,494,356 | 18,499,674 |
Effect of dilutive securities | 274,110 | 202,899 | 349,543 |
Diluted - weighted average shares outstanding (in shares) | 18,783,633 | 18,697,255 | 18,849,217 |
Basic earnings per share (in dollars per share) | $ 5.92 | $ 3.58 | $ 3.51 |
Diluted earnings per share (in dollars per share) | $ 5.83 | $ 3.55 | $ 3.44 |
Income Attributable to Tennan_4
Income Attributable to Tennant Company Per Share - Narrative (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Antidilutive securities (in shares) | 249,690 | 649,054 | 171,273 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) | 12 Months Ended |
Dec. 31, 2023 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 4 |
Number of reportable segments | 1 |
Segment Reporting - Net Sales a
Segment Reporting - Net Sales and Long-lived Assets by Geographic Area (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 1,243.6 | $ 1,092.2 | $ 1,090.8 |
Long-lived assets | 460.1 | 457.5 | 477.8 |
UNITED STATES | |||
Segment Reporting Information [Line Items] | |||
Net sales | 726.8 | 618.8 | 566.4 |
Long-lived assets | 104.2 | 105.9 | 106.6 |
Other Americas | |||
Segment Reporting Information [Line Items] | |||
Net sales | 113.5 | 87.1 | 91.9 |
Long-lived assets | 31.9 | 26.4 | 18.8 |
Americas | |||
Segment Reporting Information [Line Items] | |||
Net sales | 840.3 | 705.9 | 658.3 |
Long-lived assets | 136.1 | 132.3 | 125.4 |
Italy | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 218 | 223.5 | 280.4 |
Other Europe, Middle East, Africa | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 75.6 | 69.6 | 36.2 |
Europe, Middle East and Africa (EMEA) | |||
Segment Reporting Information [Line Items] | |||
Net sales | 314.4 | 301.6 | 331.9 |
Long-lived assets | 293.6 | 293.1 | 316.6 |
Asia Pacific (APAC) | |||
Segment Reporting Information [Line Items] | |||
Net sales | 88.9 | 84.7 | 100.6 |
Long-lived assets | $ 30.4 | $ 32.1 | $ 35.8 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | Feb. 21, 2024 USD ($) |
Subsequent Event | Brain Corp | |
Subsequent Event [Line Items] | |
Investment agreement, non-controlling preferred equity shares | $ 32.1 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Allowance for doubtful accounts: | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | $ 6.1 | $ 5.3 | $ 4.6 |
Charged to costs and expenses | 4.4 | 1.9 | 1.5 |
Reclassification | 0 | 0 | 0 |
Charged to other accounts | 0 | 0.1 | 0.3 |
Deduction | (3.3) | (1.2) | (1.1) |
Balance at end of year | 7.2 | 6.1 | 5.3 |
Sales returns reserve: | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 1.4 | 1 | 1 |
Charged to costs and expenses | 2 | 0.9 | 0.1 |
Deduction | (1.5) | (0.5) | (0.1) |
Balance at end of year | 1.9 | 1.4 | 1 |
Allowance for excess and obsolete inventories: | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 14.2 | 14.3 | 13.6 |
Charged to costs and expenses | 8.9 | 0.5 | 1.7 |
Charged to other accounts | 0.1 | 0.2 | (0.3) |
Deduction | (6) | (0.8) | (0.7) |
Balance at end of year | 17.2 | 14.2 | 14.3 |
Valuation allowance for deferred tax assets: | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 3.3 | 4.8 | 7.5 |
Charged to costs and expenses | (0.3) | (1.4) | (2.6) |
Charged to other accounts | 0.2 | (0.1) | (0.1) |
Balance at end of year | 3.2 | 3.3 | 4.8 |
Warranty reserve: | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 10.9 | 10.4 | 11.1 |
Charged to costs and expenses | 12.2 | 9.9 | 8.5 |
Charged to other accounts | (0.1) | (0.1) | (0.2) |
Deduction | (11.8) | (9.3) | (9) |
Balance at end of year | $ 11.2 | $ 10.9 | $ 10.4 |