NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
1. BASIS OF PRESENTATION
The condensed consolidated financial statements of AGCO Corporation and its subsidiaries (the “Company” or “AGCO”) included herein have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary to present fairly the Company’s financial position, results of operations, comprehensive income (loss) and cash flows at the dates and for the periods presented. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Results for interim periods are not necessarily indicative of the results for the year.
The Company cannot predict the ongoing impact of the coronavirus (“COVID-19”) pandemic due to increased volatility in global economic and political environments, uncertain market demand for its products, supply chain disruptions, possible workforce unavailability, exchange rate and commodity price volatility and availability of financing, and their impact to the Company’s net sales, production volumes, costs and overall financial condition and available funding. The Company may be required to record significant impairment charges in the future with respect to noncurrent assets such as goodwill and other intangible assets and equity method investments, whose fair values may be negatively affected by the COVID-19 pandemic. The Company also may be required to write-down obsolete inventory due to decreased customer demand and sales orders. The Company is closely monitoring the collection of accounts receivable, as well as the operating results of its finance joint ventures around the world. If economic conditions around the world continue to deteriorate, the Company and its finance joint ventures may not collect accounts receivable at expected levels, and the operating results of its finance joint ventures may be negatively impacted, thus negatively impacting the Company’s results of operations and financial condition. The Company also is closely assessing its compliance with debt covenants, the recognition of any future insurance recoveries, cash flow hedging forecasts as compared to actual transactions, the fair value of pension assets, accounting for incentive and stock compensation accruals, revenue recognition and discount reserve setting as well as the realization of deferred tax assets in light of the COVID-19 pandemic.
Recently Adopted Accounting Pronouncements
In March 2020, the FASB issued ASU 2020-04, “Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”), which provides temporary accounting relief for contract modifications to ease the financial reporting burdens related to the expected market transition from LIBOR and other interbank offered rates to a new alternative reference rate. ASU 2020-04 can be applied as of the beginning of the interim period that includes March 12, 2020 or any date thereafter. ASU 2020-04 generally will no longer be available to apply after December 31, 2022. Interest on U.S. dollar borrowings under the Company's credit facility and its April 2020 amendment is calculated based upon LIBOR. In the event that LIBOR is no longer published, interest will be calculated upon a base rate. The credit facility and its April 2020 amendment provide for an expedited amendment process once a replacement for LIBOR is established (see Note 5). The Company adopted this standard as of March 31, 2020. The adoption did not have a material impact to the Company’s results of operations, financial condition and cash flows.
In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”), which requires measurement and recognition of expected versus incurred credit losses for financial assets held. ASU 2016-13 is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods as the adoption of the standard relates to the Company. In April 2019, the FASB issued ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments” (“ASU 2019-04”), which provides, among other things, targeted improvements to certain aspects of accounting for credit losses addressed by ASU 2016-13. In November 2019, the FASB issued ASU 2019-11, “Codification Improvements to Topic 326), Financial Instruments - Credit Losses,” which clarifies the treatment of expected recoveries for amounts previously written-off on purchased receivables, provides transition relief for troubled debt restructurings and allows for certain disclosure simplifications of accrued interest. The effective dates for both ASU 2019-04 and ASU 2019-11 are the same as the effective dates for ASU 2016-13. The Company adopted this standard, and its subsequent modifications, as of
Notes to Condensed Consolidated Financial Statements - Continued
(unaudited)
January 1, 2020. The adoption did not have a material impact to the Company’s results of operations, financial condition and cash flows.
New Accounting Pronouncements to be Adopted
In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes,” which simplifies various aspects related to accounting for income taxes by removing certain exceptions for investments, intraperiod allocations and interim calculations, and adding guidance to reduce complexity in accounting for income taxes. ASU 2019-12 is effective for annual periods beginning after December 15, 2020, and interim periods within those annual periods using a prospective approach. Early adoption is permitted. Depending on the amendment, adoption may be applied on the retrospective, modified retrospective or prospective basis. The standard will not have a material impact on the Company's results of operations, financial condition and cash flows.
As discussed above, in June 2016, the FASB issued ASU 2016-13, which requires measurement and recognition of expected versus incurred credit losses for financial assets held. In November 2019, the FASB issued ASU 2019-10, “Financial Instruments - Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates,” which delays the effective date of ASU 2016-13 for smaller reporting companies and other non-SEC reporting entities. This applies to the Company’s equity method finance joint ventures who are now required to adopt ASU 2016-13 for annual periods beginning after December 15, 2022 and interim periods within those annual periods. The standard, and its subsequent modification, will likely impact the results of operations and financial condition of the Company’s finance joint ventures. Therefore, adoption of the standard by the Company’s finance joint ventures will likely impact the Company’s “Investment in affiliates” and “Equity in net earnings of affiliates.” The Company’s finance joint ventures currently are evaluating the impact of ASU 2016-13 to their results of operations and financial condition.
2. RESTRUCTURING EXPENSES
From 2014 through 2020, the Company announced and initiated several actions to rationalize employee headcount at various manufacturing facilities and various administrative offices located in Europe, South America, Africa, China and the United States in order to reduce costs in response to softening global market demand and lower production volumes. The aggregate headcount reduction was approximately 4,160 employees between 2014 and 2019. In addition, during 2019, the Company initiated various restructuring activities in an effort to rationalize its grain storage and protein production system operations. During the six months ended June 30, 2020, the Company recorded severance and related costs associated with further rationalizations in connection with the termination of approximately 300 employees. Restructuring expenses activity during the three and six months ended June 30, 2020 is summarized as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Write-down of Property, Plant and Equipment
|
|
Employee Severance
|
|
Facility Closure Costs
|
|
Total
|
Balance as of December 31, 2019
|
$
|
—
|
|
|
$
|
4.8
|
|
|
$
|
—
|
|
|
$
|
4.8
|
|
First quarter 2020 provision
|
—
|
|
|
0.7
|
|
|
0.2
|
|
|
0.9
|
|
First quarter 2020 provision reversal
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
(0.1
|
)
|
First quarter 2020 cash activity
|
—
|
|
|
(1.7
|
)
|
|
(0.2
|
)
|
|
(1.9
|
)
|
Foreign currency translation
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
(0.1
|
)
|
Balance as of March 31, 2020
|
$
|
—
|
|
|
$
|
3.6
|
|
|
$
|
—
|
|
|
$
|
3.6
|
|
Second quarter 2020 provision
|
1.6
|
|
|
2.2
|
|
|
—
|
|
|
3.8
|
|
Less: Non-cash expense
|
(1.6
|
)
|
|
—
|
|
|
—
|
|
|
(1.6
|
)
|
Cash expense
|
—
|
|
|
2.2
|
|
|
—
|
|
|
2.2
|
|
Second quarter 2020 cash activity
|
—
|
|
|
(0.8
|
)
|
|
—
|
|
|
(0.8
|
)
|
Foreign currency translation
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
(0.1
|
)
|
Balance as of June 30, 2020
|
$
|
—
|
|
|
$
|
4.9
|
|
|
$
|
—
|
|
|
$
|
4.9
|
|
Notes to Condensed Consolidated Financial Statements - Continued
(unaudited)
3. STOCK COMPENSATION PLANS
The Company recorded stock compensation expense as follows for the three and six months ended June 30, 2020 and 2019 (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Cost of goods sold
|
|
$
|
0.3
|
|
|
$
|
0.5
|
|
|
$
|
0.4
|
|
|
$
|
1.0
|
|
Selling, general and administrative expenses
|
|
10.1
|
|
|
12.2
|
|
|
12.6
|
|
|
24.2
|
|
Total stock compensation expense
|
|
$
|
10.4
|
|
|
$
|
12.7
|
|
|
$
|
13.0
|
|
|
$
|
25.2
|
|
Stock Incentive Plan
Under the Company’s Long-Term Incentive Plan (the “Plan”), up to 10,000,000 shares of AGCO common stock may be issued. As of June 30, 2020, of the 10,000,000 shares reserved for issuance under the Plan, approximately 3,237,655 shares were available for grant, assuming the maximum number of shares are earned related to the performance award grants discussed below. The Plan allows the Company, under the direction of the Board of Directors’ Compensation Committee, to make grants of performance shares, stock appreciation rights, restricted stock units and restricted stock awards to employees, officers and non-employee directors of the Company.
Long-Term Incentive Plan and Related Performance Awards
The weighted average grant-date fair value of performance awards granted under the Plan during the six months ended June 30, 2020 and 2019 was $70.84 and $61.01, respectively.
During the six months ended June 30, 2020, the Company granted 425,440 performance awards related to varying performance periods. The awards granted assume the maximum target levels of performance are achieved. The compensation expense associated with all awards granted under the Plan is amortized ratably over the vesting or performance period based on the Company’s projected assessment of the level of performance that will be achieved.
Performance award transactions during the six months ended June 30, 2020 were as follows and are presented as if the Company were to achieve its maximum levels of performance under the plan awards:
|
|
|
|
Shares awarded but not earned at January 1
|
932,182
|
|
Shares awarded
|
425,440
|
|
Shares forfeited
|
(63,242
|
)
|
Shares earned
|
—
|
|
Shares awarded but not earned at June 30
|
1,294,380
|
|
As of June 30, 2020, the total compensation cost related to unearned performance awards not yet recognized, assuming the Company’s current projected assessment of the level of performance that will be achieved, was approximately $25.8 million, and the weighted average period over which it is expected to be recognized is approximately two years. The compensation cost not yet recognized could be higher or lower based on actual achieved levels of performance.
Restricted Stock Unit Awards
During the six months ended June 30, 2020, the Company granted 95,593 restricted stock unit (“RSU”) awards. These awards entitle the participant to receive one share of the Company’s common stock for each RSU granted and vest one-third per year over a three-year requisite service period, subject to adjustment in certain cases based on performance metric relative to the Company's peer group, commencing in 2020. The compensation expense associated with these awards is being amortized ratably over the requisite service period for the awards that are expected to vest. The weighted average grant-date fair value of the RSUs granted under the Plan during the six months ended June 30, 2020 and 2019 was $70.83 and $61.01, respectively.
Notes to Condensed Consolidated Financial Statements - Continued
(unaudited)
RSU transactions during the six months ended June 30, 2020 were as follows:
|
|
|
|
RSUs awarded but not vested at January 1
|
396,529
|
|
RSUs awarded
|
95,593
|
|
RSUs forfeited
|
(36,051
|
)
|
RSUs vested
|
(116,225
|
)
|
RSUs awarded but not vested at June 30
|
339,846
|
|
As of June 30, 2020, the total compensation cost related to the unvested RSUs not yet recognized was approximately $12.2 million, and the weighted average period over which it is expected to be recognized is approximately one and one-half years.
Stock-Settled Appreciation Rights
The compensation expense associated with the stock-settled appreciation rights (“SSARs”) is amortized ratably over the requisite service period for the awards that are expected to vest. The Company estimates the fair value of the grants using the Black-Scholes option pricing model. SSAR transactions during the six months ended June 30, 2020 were as follows:
|
|
|
|
SSARs outstanding at January 1
|
759,675
|
|
SSARs granted
|
187,100
|
|
SSARs exercised
|
(19,500
|
)
|
SSARs canceled or forfeited
|
(32,661
|
)
|
SSARs outstanding at June 30
|
894,614
|
|
As of June 30, 2020, the total compensation cost related to the unvested SSARs not yet recognized was approximately $4.8 million, and the weighted average period over which it is expected to be recognized is approximately two and one-half years.
Director Restricted Stock Grants
The Plan provides for annual restricted stock grants of the Company’s common stock to all non-employee directors. The 2020 grant was made on April 30, 2020 and equated to 25,542 shares of common stock, of which 19,862 shares of common stock were issued after shares were withheld for taxes. The Company recorded stock compensation expense of approximately $1.4 million during the six months ended June 30, 2020 associated with these grants.
4. GOODWILL AND OTHER INTANGIBLE ASSETS
Changes in the carrying amount of goodwill during the six months ended June 30, 2020 are summarized as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
South America
|
|
Europe/Middle East
|
|
Asia/Pacific/Africa
|
|
Consolidated
|
Balance as of December 31, 2019
|
$
|
606.0
|
|
|
$
|
112.2
|
|
|
$
|
463.3
|
|
|
$
|
116.8
|
|
|
$
|
1,298.3
|
|
Impairment charge
|
(20.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(20.0
|
)
|
Foreign currency translation
|
—
|
|
|
(29.2
|
)
|
|
(1.2
|
)
|
|
(1.3
|
)
|
|
(31.7
|
)
|
Balance as of June 30, 2020
|
$
|
586.0
|
|
|
$
|
83.0
|
|
|
$
|
462.1
|
|
|
$
|
115.5
|
|
|
$
|
1,246.6
|
|
Goodwill is tested for impairment on an annual basis and more often if indications of impairment exist. The Company conducts its annual impairment analyses as of October 1 each fiscal year. The COVID-19 pandemic has adversely impacted the global economy as a whole. Based on current macroeconomic conditions, the Company assessed its goodwill and other intangible assets for indications of impairment as of March 31, 2020 and June 30, 2020. As of June 30, 2020, the Company concluded there were indicators of impairment during the three months ended June 30, 2020 related to one of its smaller reporting units, which is a 50%-owned tillage and seeding joint venture. The Company consolidates the reporting unit as it was determined to be the primary beneficiary of the joint venture. Deteriorating market conditions for the products the joint venture
Notes to Condensed Consolidated Financial Statements - Continued
(unaudited)
sells have been negatively impacted by the COVID-19 pandemic in the second quarter, greater than initially expected. As a result, recently updated strategic reviews with revised forecasts indicated an impairment of the entire goodwill balance of this reporting unit was necessary as of June 30, 2020. During the three months ended June 30, 2020, an impairment charge of approximately $20.0 million was recorded as "Goodwill impairment charge" within the Company's Condensed Consolidated Statements of Operations, with an offsetting benefit of approximately $10.0 million included within "Net loss attributable to noncontrolling interests."
Changes in the carrying amount of acquired intangible assets during the six months ended June 30, 2020 are summarized as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross carrying amounts:
|
Trademarks and Tradenames
|
|
Customer Relationships
|
|
Patents and Technology
|
|
Land Use Rights
|
|
Total
|
Balance as of December 31, 2019
|
$
|
199.3
|
|
|
$
|
579.0
|
|
|
$
|
151.1
|
|
|
$
|
8.5
|
|
|
$
|
937.9
|
|
Foreign currency translation
|
(1.1
|
)
|
|
(9.9
|
)
|
|
(0.3
|
)
|
|
(0.1
|
)
|
|
(11.4
|
)
|
Balance as of June 30, 2020
|
$
|
198.2
|
|
|
$
|
569.1
|
|
|
$
|
150.8
|
|
|
$
|
8.4
|
|
|
$
|
926.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated amortization:
|
Trademarks and Tradenames
|
|
Customer Relationships
|
|
Patents and Technology
|
|
Land Use Rights
|
|
Total
|
Balance as of December 31, 2019
|
$
|
83.3
|
|
|
$
|
347.4
|
|
|
$
|
88.7
|
|
|
$
|
3.1
|
|
|
$
|
522.5
|
|
Amortization expense
|
5.0
|
|
|
20.2
|
|
|
4.6
|
|
|
0.1
|
|
|
29.9
|
|
Foreign currency translation
|
(0.7
|
)
|
|
(8.7
|
)
|
|
(0.2
|
)
|
|
—
|
|
|
(9.6
|
)
|
Balance as of June 30, 2020
|
$
|
87.6
|
|
|
$
|
358.9
|
|
|
$
|
93.1
|
|
|
$
|
3.2
|
|
|
$
|
542.8
|
|
|
|
|
|
|
Indefinite-lived intangible assets:
|
Trademarks and
Tradenames
|
Balance as of December 31, 2019
|
$
|
86.3
|
|
Foreign currency translation
|
—
|
|
Balance as of June 30, 2020
|
$
|
86.3
|
|
The Company currently amortizes certain acquired intangible assets, primarily on a straight-line basis, over their estimated useful lives, which range from five to 50 years.
5. INDEBTEDNESS
Long-term debt consisted of the following at June 30, 2020 and December 31, 2019 (in millions):
|
|
|
|
|
|
|
|
|
|
June 30, 2020
|
|
December 31, 2019
|
Senior term loan due 2022
|
$
|
168.1
|
|
|
$
|
168.1
|
|
Credit facility, expires 2023
|
461.6
|
|
|
—
|
|
1.002% Senior term loan due 2025
|
280.3
|
|
|
280.2
|
|
Senior term loans due between 2021 and 2028
|
736.5
|
|
|
736.2
|
|
Other long-term debt
|
10.6
|
|
|
12.5
|
|
Debt issuance costs
|
(3.1
|
)
|
|
(2.3
|
)
|
|
1,654.0
|
|
|
1,194.7
|
|
Current portion of other long-term debt
|
(1.9
|
)
|
|
(2.9
|
)
|
Total long-term indebtedness, less current portion
|
$
|
1,652.1
|
|
|
$
|
1,191.8
|
|
Senior Term Loan Due 2022
In October 2018, the Company entered into a term loan agreement with Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (“Rabobank”) in the amount of €150.0 million (or approximately $168.1 million as of June 30, 2020).
Notes to Condensed Consolidated Financial Statements - Continued
(unaudited)
The Company is permitted to prepay the term loan before its maturity date of October 28, 2022. Interest is payable on the term loan quarterly in arrears at an annual rate equal to the Euro Interbank Offered Rate (“EURIBOR”) plus a margin ranging from 0.875% to 1.875% based on the Company’s credit rating.
Credit Facility
In October 2018, the Company entered into a multi-currency revolving credit facility of $800.0 million. The maturity date of the credit facility is October 17, 2023. Interest accrues on amounts outstanding under the credit facility, at the Company’s option, at either (1) LIBOR plus a margin ranging from 0.875% to 1.875% based on the Company’s credit rating, or (2) the base rate, which is equal to the higher of (i) the administrative agent’s base lending rate for the applicable currency, (ii) the federal funds rate plus 0.5%, and (iii) one-month LIBOR for loans denominated in U.S. dollars plus 1.0%, plus a margin ranging from 0.0% to 0.875% based on the Company’s credit rating. As of June 30, 2020, the Company had approximately $196.1 million of outstanding borrowings under the revolving credit facility and the ability to borrow approximately $603.9 million under the revolving credit facility. As of December 31, 2019, the Company had no outstanding borrowings under the revolving credit facility and the ability to borrow approximately $800.0 million under the revolving credit facility.
On April 9, 2020, the Company entered into an amendment to its $800.0 million multi-currency revolving credit facility to include incremental term loans (“2020 term loans”) that allow the Company to borrow an aggregate principal amount of €235.0 million and $267.5 million, respectively (or an aggregate of approximately $530.9 million as of June 30, 2020). Amounts can be drawn incrementally at any time prior to maturity, but must be drawn down proportionately. Amounts drawn must be in a minimum principal amount of $100.0 million and integral multiples of $50.0 million in excess thereof. Once amounts have been repaid, those amounts are not permitted to be re-drawn. The maturity date of the 2020 term loans is April 8, 2022. Interest accrues on amounts outstanding under the 2020 term loans, at the Company's option, at either (1) LIBOR plus a margin based on the Company's credit rating ranging from 1.125% to 2.125% until April 8, 2021 and ranging from 1.375% to 2.375% thereafter, or (2) the base rate, which is equal to the higher of (i) the administrative agent’s base lending rate for the applicable currency, (ii) the federal funds rate plus 0.5%, and (iii) one-month LIBOR for loans denominated in U.S. dollars plus 1.0%, plus a margin based on the Company’s credit rating ranging from 0.125% to 1.375% until April 8, 2021 and ranging from 0.375% to 1.375% thereafter. The 2020 term loans contain covenants restricting, among other things, the incurrence of indebtedness and the making of certain payments, including dividends. The Company also has to fulfill financial covenants with respect to a total debt to EBITDA ratio and an interest coverage ratio. On April 15, 2020, the Company borrowed €117.5 million and $133.8 million (or an aggregate of approximately $265.5 million as of June 30, 2020) of 2020 term loans. The Company simultaneously repaid €100.0 million (or approximately $108.7 million) of its revolving credit facility from the borrowings received. There were no other borrowings on the 2020 term loans subsequent to the initial borrowings in April during the three months ended June 30, 2020. As of June 30, 2020, the Company had the ability to borrow approximately $265.4 million of 2020 term loans.
Interest on U.S. dollar borrowings under the Company's credit facility and the 2020 term loans is calculated based upon LIBOR. In the event that LIBOR is no longer published, interest will be calculated upon a base rate. The credit facility and 2020 term loans also provides for an expedited amendment process once a replacement for LIBOR is established.
1.002% Senior Term Loan Due 2025
In December 2018, the Company entered into a term loan with the European Investment Bank ("EIB"), which provided the Company with the ability to borrow up to €250.0 million. The €250.0 million (or approximately $280.3 million as of June 30, 2020) of funding was received on January 25, 2019 with a maturity date of January 24, 2025. The Company is permitted to prepay the term loan before its maturity date. Interest is payable on the term loan at 1.002% per annum, payable semi-annually in arrears.
Senior Term Loans Due Between 2021 and 2028
In October 2016, the Company borrowed an aggregate amount of €375.0 million through a group of seven related term loan agreements, and in August 2018, the Company borrowed an additional aggregate amount of €338.0 million through a group of another seven related term loan agreements. Of the 2016 term loans, an aggregate amount of €56.0 million (or approximately $61.1 million) was repaid upon maturity of two term loan agreements in October 2019.
Notes to Condensed Consolidated Financial Statements - Continued
(unaudited)
In aggregate, the Company has indebtedness of €657.0 million (or approximately $736.5 million as of June 30, 2020) through this group of twelve related term loan agreements. The provisions of the term loan agreements are substantially identical, with the exception of interest rate terms and maturities. The Company is permitted to prepay the term loans before their maturity dates. For the term loans with a fixed interest rate, interest is payable in arrears on an annual basis, with interest rates ranging from 0.70% to 2.26% and a maturity date between August 2021 and August 2028. For the term loans with a floating interest rate, interest is payable in arrears on a semi-annual basis, with interest rates based on the EURIBOR plus a margin ranging from 0.70% to 1.25% and a maturity date between August 2021 and August 2025.
Short-Term Borrowings
As of June 30, 2020 and December 31, 2019, the Company had short-term borrowings due within one year of approximately $102.6 million and $150.5 million, respectively.
Standby Letters of Credit and Similar Instruments
The Company has arrangements with various banks to issue standby letters of credit or similar instruments, which guarantee the Company’s obligations for the purchase or sale of certain inventories and for potential claims exposure for insurance coverage. At June 30, 2020 and December 31, 2019, outstanding letters of credit totaled approximately $14.4 million and $13.9 million, respectively.
6. RECOVERABLE INDIRECT TAXES
The Company’s Brazilian operations incur value added taxes (“VAT”) on certain purchases of raw materials, components and services. These taxes are accumulated as tax credits and create assets that are reduced by the VAT collected from the Company’s sales in the Brazilian market. The Company regularly assesses the recoverability of these tax credits, and establishes reserves when necessary against them, through analyses that include, amongst others, the history of realization, the transfer of tax credits to third parties as authorized by the government, anticipated changes in the supply chain and the future expectation of tax debits from the Company’s ongoing operations. The Company believes that these tax credits, net of established reserves, are realizable. The Company had recorded approximately $99.1 million and $142.3 million, respectively, of VAT tax credits, net of reserves, as of June 30, 2020 and December 31, 2019.
7. INVENTORIES
Inventories at June 30, 2020 and December 31, 2019 were as follows (in millions):
|
|
|
|
|
|
|
|
|
|
June 30, 2020
|
|
December 31, 2019
|
Finished goods
|
$
|
797.0
|
|
|
$
|
780.1
|
|
Repair and replacement parts
|
610.0
|
|
|
611.5
|
|
Work in process
|
254.5
|
|
|
213.4
|
|
Raw materials
|
507.5
|
|
|
473.7
|
|
Inventories, net
|
$
|
2,169.0
|
|
|
$
|
2,078.7
|
|
8. PRODUCT WARRANTY
The warranty reserve activity for the three and six months ended June 30, 2020 and 2019 consisted of the following (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Balance at beginning of period
|
$
|
384.6
|
|
|
$
|
361.3
|
|
|
$
|
392.8
|
|
|
$
|
360.9
|
|
Accruals for warranties issued during the period
|
57.6
|
|
|
48.0
|
|
|
113.9
|
|
|
99.1
|
|
Settlements made (in cash or in kind) during the period
|
(38.2
|
)
|
|
(40.2
|
)
|
|
(87.6
|
)
|
|
(87.6
|
)
|
Foreign currency translation
|
5.0
|
|
|
2.8
|
|
|
(10.1
|
)
|
|
(0.5
|
)
|
Balance at June 30
|
$
|
409.0
|
|
|
$
|
371.9
|
|
|
$
|
409.0
|
|
|
$
|
371.9
|
|
Notes to Condensed Consolidated Financial Statements - Continued
(unaudited)
The Company’s agricultural equipment products generally are warranted against defects in material and workmanship for a period of one to four years. The Company accrues for future warranty costs at the time of sale based on historical warranty experience. Approximately $334.3 million and $331.9 million of warranty reserves are included in “Accrued expenses” in the Company’s Condensed Consolidated Balance Sheets as of June 30, 2020 and December 31, 2019, respectively. Approximately $74.7 million and $60.9 million of warranty reserves are included in “Other noncurrent liabilities” in the Company’s Condensed Consolidated Balance Sheets as of June 30, 2020 and December 31, 2019, respectively.
The Company recognizes recoveries of the costs associated with warranties it provides when the collection is probable. When specifics of the recovery have been agreed upon with the Company’s suppliers through confirmation of liability for the recovery, the Company records the recovery within “Accounts and notes receivable, net.” Estimates of the amount of warranty claim recoveries to be received from the Company’s suppliers based upon contractual supplier arrangements are recorded within “Other current assets.”
9. NET INCOME PER COMMON SHARE
Basic net income per common share is computed by dividing net income by the weighted average number of common shares outstanding during each period. Diluted net income per common share assumes the exercise of outstanding SSARs and the vesting of performance share awards and RSUs using the treasury stock method when the effects of such assumptions are dilutive.
A reconciliation of net income attributable to AGCO Corporation and subsidiaries and weighted average common shares outstanding for purposes of calculating basic and diluted net income per share for the three and six months ended June 30, 2020 and 2019 is as follows (in millions, except per share data):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Basic net income per share:
|
|
|
|
|
|
|
|
Net income attributable to AGCO Corporation and subsidiaries
|
$
|
69.7
|
|
|
$
|
140.8
|
|
|
$
|
134.4
|
|
|
$
|
205.9
|
|
Weighted average number of common shares outstanding
|
74.9
|
|
|
76.6
|
|
|
75.1
|
|
|
76.6
|
|
Basic net income per share attributable to AGCO Corporation and subsidiaries
|
$
|
0.93
|
|
|
$
|
1.84
|
|
|
$
|
1.79
|
|
|
$
|
2.69
|
|
Diluted net income per share:
|
|
|
|
|
|
|
|
|
|
Net income attributable to AGCO Corporation and subsidiaries
|
$
|
69.7
|
|
|
$
|
140.8
|
|
|
$
|
134.4
|
|
|
$
|
205.9
|
|
Weighted average number of common shares outstanding
|
74.9
|
|
|
76.6
|
|
|
75.1
|
|
|
76.6
|
|
Dilutive SSARs, performance share awards and RSUs
|
0.3
|
|
|
0.6
|
|
|
0.5
|
|
|
0.7
|
|
Weighted average number of common shares and common share equivalents outstanding for purposes of computing diluted net income per share
|
75.2
|
|
|
77.2
|
|
|
75.6
|
|
|
77.3
|
|
Diluted net income per share attributable to AGCO Corporation and subsidiaries
|
$
|
0.93
|
|
|
$
|
1.82
|
|
|
$
|
1.78
|
|
|
$
|
2.66
|
|
SSARs to purchase approximately 0.7 million shares of the Company’s common stock for both three and six months ended June 30, 2020, and approximately 0.4 million and 0.6 million shares of the Company's common stock for the three and six months ended June 30, 2019, respectively, were outstanding but not included in the calculation of weighted average common and common equivalent shares outstanding because they had an antidilutive impact.
Notes to Condensed Consolidated Financial Statements - Continued
(unaudited)
10. INCOME TAXES
At June 30, 2020 and December 31, 2019, the Company had approximately $229.4 million and $210.7 million, respectively, of gross unrecognized income tax benefits, all of which would affect the Company’s effective tax rate if recognized. Gross unrecognized income tax benefits as of June 30, 2020 and December 31, 2019 include certain indirect favorable effects that relate to other tax jurisdictions of approximately $50.9 million and $44.9 million, respectively. At June 30, 2020 and December 31, 2019, the Company had approximately $53.4 million and $51.0 million, respectively, of accrued or deferred taxes related to uncertain income tax positions connected with ongoing income tax audits in various jurisdictions that it expects to settle or pay in the next 12 months. The Company accrues interest and penalties related to unrecognized tax benefits in its provision for income taxes. At June 30, 2020 and December 31, 2019, the Company had accrued interest and penalties related to unrecognized tax benefits of approximately $33.8 million and $28.4 million, respectively. Generally, tax years 2014 through 2019 remain open to examination by taxing authorities in the United States and certain other foreign tax jurisdictions. The Company and its subsidiaries are routinely examined by tax authorities in the United States and in various state, local and foreign jurisdictions. As of June 30, 2020, a number of income tax examinations in foreign jurisdictions are ongoing.
The Company maintains a valuation allowance to fully reserve against its net deferred tax assets in the United States and certain other foreign jurisdictions. A valuation allowance is established when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company assessed the likelihood that its deferred tax assets would be recovered from estimated future taxable income and available tax planning strategies and determined that all adjustments to the valuation allowances were appropriate. In making this assessment, all available evidence was considered including the current economic climate, as well as reasonable tax planning strategies. The Company believes it is more likely than not that the Company will realize its remaining net deferred tax assets, net of the valuation allowance, in future years.
On March 27, 2020, the CARES Act (the “Act”) was enacted in the United States in response to the COVID-19 pandemic, and among other things, provides tax relief to businesses. Tax provisions of the Act include the deferral of certain payroll taxes, relief for retaining employees and other provisions. Other governments around the world have also enacted similar measures and may enact further measures in the future. To date, the Act and other similar worldwide measures have not had a material impact to the Company’s results of operations or financial condition.
11. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
Derivative Transactions Designated as Hedging Instruments
Cash Flow Hedges
Foreign Currency Contracts
The Company uses cash flow hedges to minimize the variability in cash flows of assets or liabilities or forecasted transactions caused by fluctuations in foreign currency exchange rates. The changes in the fair values of these cash flow hedges are recorded in accumulated other comprehensive loss and are subsequently reclassified into “Cost of goods sold” during the period the sales and purchases are recognized. These amounts offset the effect of the changes in foreign currency rates on the related sale and purchase transactions.
During 2020 and 2019, the Company designated certain foreign currency contracts as cash flow hedges of expected future sales and purchases. The total notional value of derivatives that were designated as cash flow hedges was approximately $125.3 million and $332.7 million as of June 30, 2020 and December 31, 2019, respectively.
Notes to Condensed Consolidated Financial Statements - Continued
(unaudited)
The following tables summarize the after-tax impact that changes in the fair value of derivatives designated as cash flow hedges had on accumulated other comprehensive loss and net income during the three and six months ended June 30, 2020 and 2019 (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recognized in Net Income
|
|
|
Three Months Ended June 30,
|
Gain (Loss) Recognized in Accumulated
Other Comprehensive Loss
|
|
Classification of Gain (Loss)
|
|
Gain (Loss) Reclassified from Accumulated
Other Comprehensive Loss into Income
|
|
Total Amount of the Line Item in the Condensed Consolidated Statements of Operations Containing Hedge Gains (Losses)
|
2020
|
|
|
|
|
|
|
|
Foreign currency contracts
|
$
|
(1.3
|
)
|
|
Cost of goods sold
|
|
$
|
3.1
|
|
|
$
|
1,574.1
|
|
2019
|
|
|
|
|
|
|
|
Foreign currency contracts
|
$
|
4.3
|
|
|
Cost of goods sold
|
|
$
|
(0.5
|
)
|
|
$
|
1,858.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recognized in Net Income
|
|
|
Six Months Ended June 30,
|
Gain (Loss) Recognized in Accumulated
Other Comprehensive Loss
|
|
Classification of Gain (Loss)
|
|
Gain (Loss) Reclassified from Accumulated
Other Comprehensive Loss into Income
|
|
Total Amount of the Line Item in the Condensed Consolidated Statements of Operations Containing Hedge Gains (Losses)
|
2020
|
|
|
|
|
|
|
|
Foreign currency contracts(1)
|
$
|
8.2
|
|
|
Cost of goods sold
|
|
$
|
3.2
|
|
|
$
|
3,051.9
|
|
2019
|
|
|
|
|
|
|
|
Foreign currency contracts
|
$
|
(0.4
|
)
|
|
Cost of goods sold
|
|
$
|
(1.1
|
)
|
|
$
|
3,397.8
|
|
(1) The outstanding contracts as of June 30, 2020 range in maturity through December 2020.
The following table summarizes the activity in accumulated other comprehensive loss related to the derivatives held by the Company during the six months ended June 30, 2020 (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Before-Tax Amount
|
|
Income Tax
|
|
After-Tax Amount
|
Accumulated derivative net losses as of December 31, 2019
|
|
$
|
(1.5
|
)
|
|
$
|
(0.2
|
)
|
|
$
|
(1.3
|
)
|
Net changes in fair value of derivatives
|
|
9.2
|
|
|
1.0
|
|
|
8.2
|
|
Net gains reclassified from accumulated other comprehensive loss into income
|
|
(3.2
|
)
|
|
—
|
|
|
(3.2
|
)
|
Accumulated derivative net gains as of June 30, 2020
|
|
$
|
4.5
|
|
|
$
|
0.8
|
|
|
$
|
3.7
|
|
Net Investment Hedges
The Company uses non-derivative and derivative instruments to hedge a portion of its net investment in foreign operations against adverse movements in exchange rates. For instruments that are designated as hedges of net investments in foreign operations, changes in the fair value of the derivative instruments are recorded in foreign currency translation adjustments, a component of accumulated other comprehensive loss, to offset changes in the value of the net investments being hedged. When the net investment in foreign operations is sold or substantially liquidates, the amounts recorded in accumulated other comprehensive loss are reclassified to earnings. To the extent foreign currency denominated debt is de-designated from a net investment hedge relationship, changes in the value of the foreign currency denominated debt are recorded in earnings through the maturity date.
Notes to Condensed Consolidated Financial Statements - Continued
(unaudited)
In January 2018, the Company entered into a cross currency swap contract as a hedge of its net investment in foreign operations to offset foreign currency translation gains or losses on the net investment. The cross currency swap has an expiration date of January 19, 2021. At maturity of the cross currency swap contract, the Company will deliver the notional amount of approximately €245.7 million (or approximately $275.4 million as of June 30, 2020) and will receive $300.0 million from the counterparties. The Company will receive quarterly interest payments from the counterparties based on a fixed interest rate until maturity of the cross currency swap.
During the three months ended March 31, 2020, the Company designated €110.0 million of its multi-currency revolving credit facility with a maturity date of October 17, 2023 as a hedge of its net investment in foreign operations to offset foreign currency translation gains or losses on the net investment. In May 2020, the Company repaid the designated amount outstanding under its multi-currency revolving credit facility and the foreign currency denominated debt was de-designated as a net investment hedge.
During the six months ended June 30, 2019, the Company designated €160.0 million (or approximately $182.1 million as of June 30, 2019) of its multi-currency revolving credit facility as a hedge of its net investment in foreign operations to offset foreign currency translation gains or losses on the net investment. During September 2019, the Company repaid the designated amount outstanding under its multi-currency revolving credit facility and the foreign currency denominated debt was de-designated as a net investment hedge.
The following table summarizes the notional values of the instrument designated as a net investment hedge (in millions):
|
|
|
|
|
|
|
|
|
|
Notional Amount as of
|
|
June 30, 2020
|
|
December 31, 2019
|
Cross currency swap contract
|
$
|
300.0
|
|
|
$
|
300.0
|
|
The following table summarizes the after-tax impact of changes in the fair value of the instrument designated as a net investment hedge during the three and six months ended June 30, 2020 and 2019 (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (Loss) Recognized in Accumulated
Other Comprehensive Loss for the Three Months Ended
|
|
Gain Recognized in Accumulated
Other Comprehensive Loss for the Six Months Ended
|
|
June 30, 2020
|
|
June 30, 2019
|
|
June 30, 2020
|
|
June 30, 2019
|
Cross currency swap contract
|
$
|
(5.8
|
)
|
|
$
|
(2.1
|
)
|
|
$
|
1.5
|
|
|
$
|
4.8
|
|
Foreign currency denominated debt
|
1.1
|
|
|
0.3
|
|
|
1.7
|
|
|
2.0
|
|
Derivative Transactions Not Designated as Hedging Instruments
During 2020 and 2019, the Company entered into foreign currency contracts to economically hedge receivables and payables on the Company and its subsidiaries’ balance sheets that are denominated in foreign currencies other than the functional currency. These contracts were classified as non-designated derivative instruments. Gains and losses on such contracts are substantially offset by losses and gains on the remeasurement of the underlying asset or liability being hedged and are immediately recognized into earnings. As of June 30, 2020 and December 31, 2019, the Company had outstanding foreign currency contracts with a notional amount of approximately $2,552.4 million and $2,800.3 million, respectively.
The following table summarizes the impact that changes in the fair value of derivatives not designated as hedging instruments had on net income (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss Recognized in Net Income for the Three Months Ended
|
|
Gain Recognized in Net Income for the Six Months Ended
|
|
Classification of Gain (Loss)
|
|
June 30, 2020
|
|
June 30, 2019
|
|
June 30, 2020
|
|
June 30, 2019
|
Foreign currency contracts
|
Other expense, net
|
|
$
|
(9.0
|
)
|
|
$
|
(3.1
|
)
|
|
$
|
23.1
|
|
|
$
|
5.7
|
|
Notes to Condensed Consolidated Financial Statements - Continued
(unaudited)
The table below sets forth the fair value of derivative instruments as of June 30, 2020 (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Derivatives as of
June 30, 2020
|
|
Liability Derivatives as of
June 30, 2020
|
|
Balance Sheet Location
|
|
Fair Value
|
|
Balance Sheet Location
|
|
Fair Value
|
Derivative instruments designated as hedging instruments:
|
|
|
|
|
|
|
|
Foreign currency contracts
|
Other current assets
|
|
$
|
4.6
|
|
|
Other current liabilities
|
|
$
|
0.1
|
|
Cross currency swap contract
|
Other noncurrent assets
|
|
28.4
|
|
|
Other noncurrent liabilities
|
|
—
|
|
Derivative instruments not designated as hedging instruments:
|
|
|
|
|
|
|
|
Foreign currency contracts
|
Other current assets
|
|
23.7
|
|
|
Other current liabilities
|
|
17.0
|
|
Total derivative instruments
|
|
|
$
|
56.7
|
|
|
|
|
$
|
17.1
|
|
The table below sets forth the fair value of derivative instruments as of December 31, 2019 (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Derivatives as of
December 31, 2019
|
|
Liability Derivatives as of
December 31, 2019
|
|
Balance Sheet Location
|
|
Fair Value
|
|
Balance Sheet Location
|
|
Fair Value
|
Derivative instruments designated as hedging instruments:
|
|
|
|
|
|
|
|
Foreign currency contracts
|
Other current assets
|
|
$
|
0.6
|
|
|
Other current liabilities
|
|
$
|
1.9
|
|
Cross currency swap contract
|
Other noncurrent assets
|
|
27.0
|
|
|
Other noncurrent liabilities
|
|
—
|
|
Derivative instruments not designated as hedging instruments:
|
|
|
|
|
|
|
|
Foreign currency contracts
|
Other current assets
|
|
11.7
|
|
|
Other current liabilities
|
|
13.1
|
|
Total derivative instruments
|
|
|
$
|
39.3
|
|
|
|
|
$
|
15.0
|
|
Notes to Condensed Consolidated Financial Statements - Continued
(unaudited)
12. CHANGES IN STOCKHOLDERS’ EQUITY
The following tables set forth changes in stockholders’ equity attributed to AGCO Corporation and its subsidiaries and to noncontrolling interests for the three and six months ended June 30, 2020 (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
Stock
|
|
Additional
Paid-in Capital
|
|
Retained
Earnings
|
|
Accumulated Other
Comprehensive Loss
|
|
Noncontrolling
Interests
|
|
Total Stockholders’
Equity
|
Balance, March 31, 2020
|
$
|
0.8
|
|
|
$
|
—
|
|
|
$
|
4,432.7
|
|
|
$
|
(1,791.4
|
)
|
|
$
|
48.5
|
|
|
$
|
2,690.6
|
|
Stock compensation
|
—
|
|
|
10.2
|
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
10.1
|
|
Issuance of stock awards
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
—
|
|
|
—
|
|
|
69.7
|
|
|
—
|
|
|
(9.7
|
)
|
|
60.0
|
|
Other comprehensive loss, net of reclassification adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
(32.8
|
)
|
|
2.5
|
|
|
(30.3
|
)
|
Defined benefit pension plans, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
3.4
|
|
|
—
|
|
|
3.4
|
|
Deferred gains and losses on derivatives, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.4
|
)
|
|
—
|
|
|
(4.4
|
)
|
Payment of dividends to stockholders
|
—
|
|
|
—
|
|
|
(11.9
|
)
|
|
—
|
|
|
—
|
|
|
(11.9
|
)
|
Change in noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
0.1
|
|
Balance, June 30, 2020
|
$
|
0.8
|
|
|
$
|
10.1
|
|
|
$
|
4,490.4
|
|
|
$
|
(1,825.2
|
)
|
|
$
|
41.4
|
|
|
$
|
2,717.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
Stock
|
|
Additional
Paid-in Capital
|
|
Retained
Earnings
|
|
Accumulated Other
Comprehensive Loss
|
|
Noncontrolling
Interests
|
|
Total Stockholders’
Equity
|
Balance, December 31, 2019
|
$
|
0.8
|
|
|
$
|
4.7
|
|
|
$
|
4,443.5
|
|
|
$
|
(1,595.2
|
)
|
|
$
|
53.2
|
|
|
$
|
2,907.0
|
|
Stock compensation
|
—
|
|
|
16.1
|
|
|
(3.4
|
)
|
|
—
|
|
|
—
|
|
|
12.7
|
|
Issuance of stock awards
|
—
|
|
|
(7.3
|
)
|
|
(8.4
|
)
|
|
—
|
|
|
—
|
|
|
(15.7
|
)
|
SSARs exercised
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
Comprehensive loss:
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
—
|
|
|
—
|
|
|
134.4
|
|
|
—
|
|
|
(8.1
|
)
|
|
126.3
|
|
Other comprehensive loss, net of reclassification adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
(241.9
|
)
|
|
(3.2
|
)
|
|
(245.1
|
)
|
Defined benefit pension plans, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
6.9
|
|
|
—
|
|
|
6.9
|
|
Deferred gains and losses on derivatives, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
5.0
|
|
|
—
|
|
|
5.0
|
|
Payment of dividends to stockholders
|
—
|
|
|
—
|
|
|
(24.0
|
)
|
|
—
|
|
|
—
|
|
|
(24.0
|
)
|
Purchases and retirement of common stock
|
—
|
|
|
(3.4
|
)
|
|
(51.6
|
)
|
|
—
|
|
|
—
|
|
|
(55.0
|
)
|
Change in noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
|
(0.5
|
)
|
Balance, June 30, 2020
|
$
|
0.8
|
|
|
$
|
10.1
|
|
|
$
|
4,490.4
|
|
|
$
|
(1,825.2
|
)
|
|
$
|
41.4
|
|
|
$
|
2,717.5
|
|
Notes to Condensed Consolidated Financial Statements - Continued
(unaudited)
The following tables set forth changes in stockholders’ equity attributed to AGCO Corporation and its subsidiaries and to noncontrolling interests for the three and six months ended June 30, 2019 (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
Stock
|
|
Additional
Paid-in Capital
|
|
Retained
Earnings
|
|
Accumulated Other
Comprehensive Loss
|
|
Noncontrolling
Interests
|
|
Total Stockholders’
Equity
|
Balance, March 31, 2019
|
$
|
0.8
|
|
|
$
|
9.7
|
|
|
$
|
4,491.0
|
|
|
$
|
(1,545.8
|
)
|
|
$
|
63.3
|
|
|
$
|
3,019.0
|
|
Stock compensation
|
—
|
|
|
12.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12.3
|
|
Issuance of stock awards
|
—
|
|
|
(0.2
|
)
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
(0.3
|
)
|
SSARs exercised
|
—
|
|
|
(3.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.1
|
)
|
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
—
|
|
|
—
|
|
|
140.8
|
|
|
—
|
|
|
(0.4
|
)
|
|
140.4
|
|
Other comprehensive income, net of reclassification adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
3.7
|
|
|
0.7
|
|
|
4.4
|
|
Defined benefit pension plans, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
3.0
|
|
|
—
|
|
|
3.0
|
|
Deferred gains and losses on derivatives, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
4.8
|
|
|
—
|
|
|
4.8
|
|
Payment of dividends to stockholders
|
—
|
|
|
—
|
|
|
(12.2
|
)
|
|
—
|
|
|
—
|
|
|
(12.2
|
)
|
Purchases and retirement of common stock
|
—
|
|
|
(11.6
|
)
|
|
(28.4
|
)
|
|
—
|
|
|
—
|
|
|
(40.0
|
)
|
Investment by noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.4
|
|
|
0.4
|
|
Balance, June 30, 2019
|
$
|
0.8
|
|
|
$
|
7.1
|
|
|
$
|
4,591.1
|
|
|
$
|
(1,534.3
|
)
|
|
$
|
64.0
|
|
|
$
|
3,128.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
Stock
|
|
Additional
Paid-in Capital
|
|
Retained
Earnings
|
|
Accumulated Other
Comprehensive Loss
|
|
Noncontrolling
Interests
|
|
Total Stockholders’
Equity
|
Balance, December 31, 2018
|
$
|
0.8
|
|
|
$
|
10.2
|
|
|
$
|
4,477.3
|
|
|
$
|
(1,555.4
|
)
|
|
$
|
60.6
|
|
|
$
|
2,993.5
|
|
Stock compensation
|
—
|
|
|
24.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24.8
|
|
Issuance of stock awards
|
—
|
|
|
(13.2
|
)
|
|
(9.7
|
)
|
|
—
|
|
|
—
|
|
|
(22.9
|
)
|
SSARs exercised
|
—
|
|
|
(3.1
|
)
|
|
(0.3
|
)
|
|
—
|
|
|
—
|
|
|
(3.4
|
)
|
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
—
|
|
|
—
|
|
|
205.9
|
|
|
—
|
|
|
0.2
|
|
|
206.1
|
|
Other comprehensive income, net of reclassification adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
14.4
|
|
|
2.2
|
|
|
16.6
|
|
Defined benefit pension plans, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
6.0
|
|
|
—
|
|
|
6.0
|
|
Deferred gains and losses on derivatives, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
0.7
|
|
|
—
|
|
|
0.7
|
|
Payment of dividends to stockholders
|
—
|
|
|
—
|
|
|
(23.7
|
)
|
|
—
|
|
|
—
|
|
|
(23.7
|
)
|
Purchases and retirement of common stock
|
—
|
|
|
(11.6
|
)
|
|
(58.4
|
)
|
|
—
|
|
|
—
|
|
|
(70.0
|
)
|
Investment by noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.0
|
|
|
1.0
|
|
Balance, June 30, 2019
|
$
|
0.8
|
|
|
$
|
7.1
|
|
|
$
|
4,591.1
|
|
|
$
|
(1,534.3
|
)
|
|
$
|
64.0
|
|
|
$
|
3,128.7
|
|
Notes to Condensed Consolidated Financial Statements - Continued
(unaudited)
Total comprehensive (loss) income attributable to noncontrolling interests for the three and six months ended June 30, 2020 and 2019 was as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net (loss) income
|
$
|
(9.7
|
)
|
|
$
|
(0.4
|
)
|
|
$
|
(8.1
|
)
|
|
$
|
0.2
|
|
Other comprehensive (loss) income:
|
|
|
|
|
|
|
|
Foreign currency translation adjustments
|
2.5
|
|
|
0.7
|
|
|
(3.2
|
)
|
|
2.2
|
|
Total comprehensive (loss) income
|
$
|
(7.2
|
)
|
|
$
|
0.3
|
|
|
$
|
(11.3
|
)
|
|
$
|
2.4
|
|
The following table sets forth changes in accumulated other comprehensive loss by component, net of tax, attributed to AGCO Corporation and its subsidiaries for the six months ended June 30, 2020 (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Defined Benefit Pension Plans
|
|
Deferred Net Gains (Losses) on Derivatives
|
|
Cumulative Translation Adjustment
|
|
Total
|
Accumulated other comprehensive loss, December 31, 2019
|
$
|
(296.4
|
)
|
|
$
|
(1.3
|
)
|
|
$
|
(1,297.5
|
)
|
|
$
|
(1,595.2
|
)
|
Other comprehensive income (loss) before reclassifications
|
—
|
|
|
8.2
|
|
|
(241.9
|
)
|
|
(233.7
|
)
|
Net losses (gains) reclassified from accumulated other comprehensive loss
|
6.9
|
|
|
(3.2
|
)
|
|
—
|
|
|
3.7
|
|
Other comprehensive income (loss), net of reclassification adjustments
|
6.9
|
|
|
5.0
|
|
|
(241.9
|
)
|
|
(230.0
|
)
|
Accumulated other comprehensive loss, June 30, 2020
|
$
|
(289.5
|
)
|
|
$
|
3.7
|
|
|
$
|
(1,539.4
|
)
|
|
$
|
(1,825.2
|
)
|
The following table sets forth reclassification adjustments out of accumulated other comprehensive loss by component attributed to AGCO Corporation and its subsidiaries for the three months ended June 30, 2020 and 2019 (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount Reclassified from Accumulated Other Comprehensive Loss
|
|
Affected Line Item within the Condensed Consolidated
Statements of Operations
|
Details about Accumulated Other Comprehensive Loss Components
|
|
Three Months Ended June 30, 2020(1)
|
|
Three Months Ended June 30, 2019(1)
|
|
Derivatives:
|
|
|
|
|
|
|
Net (gains) losses on foreign currency contracts
|
|
$
|
(3.1
|
)
|
|
$
|
0.5
|
|
|
Cost of goods sold
|
Reclassification before tax
|
|
(3.1
|
)
|
|
0.5
|
|
|
|
|
|
—
|
|
|
—
|
|
|
Income tax provision
|
Reclassification net of tax
|
|
$
|
(3.1
|
)
|
|
$
|
0.5
|
|
|
|
|
|
|
|
|
|
|
Defined benefit pension plans:
|
|
|
|
|
|
|
Amortization of net actuarial losses
|
|
$
|
3.2
|
|
|
$
|
3.0
|
|
|
Other expense, net(2)
|
Amortization of prior service cost
|
|
0.7
|
|
|
0.5
|
|
|
Other expense, net(2)
|
Reclassification before tax
|
|
3.9
|
|
|
3.5
|
|
|
|
|
|
(0.5
|
)
|
|
(0.5
|
)
|
|
Income tax provision
|
Reclassification net of tax
|
|
$
|
3.4
|
|
|
$
|
3.0
|
|
|
|
|
|
|
|
|
|
|
Net losses reclassified from accumulated other comprehensive loss
|
|
$
|
0.3
|
|
|
$
|
3.5
|
|
|
|
(1) (Gains) losses included within the Condensed Consolidated Statements of Operations for the three months ended June 30, 2020 and 2019, respectively.
(2) These accumulated other comprehensive loss components are included in the computation of net periodic pension and postretirement benefit cost. See Note 14 for additional information on the Company’s defined benefit pension plans.
Notes to Condensed Consolidated Financial Statements - Continued
(unaudited)
The following table sets forth reclassification adjustments out of accumulated other comprehensive loss by component attributed to AGCO Corporation and its subsidiaries for the six months ended June 30, 2020 and 2019 (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount Reclassified from Accumulated Other Comprehensive Loss
|
|
Affected Line Item within the Condensed Consolidated
Statements of Operations
|
Details about Accumulated Other Comprehensive Loss Components
|
|
Six Months Ended June 30, 2020(1)
|
|
Six Months Ended June 30, 2019(1)
|
|
Derivatives:
|
|
|
|
|
|
|
Net (gains) losses on foreign currency contracts
|
|
$
|
(3.2
|
)
|
|
$
|
1.1
|
|
|
Cost of goods sold
|
Reclassification before tax
|
|
(3.2
|
)
|
|
1.1
|
|
|
|
|
|
—
|
|
|
—
|
|
|
Income tax provision
|
Reclassification net of tax
|
|
$
|
(3.2
|
)
|
|
$
|
1.1
|
|
|
|
|
|
|
|
|
|
|
Defined benefit pension plans:
|
|
|
|
|
|
|
Amortization of net actuarial losses
|
|
$
|
6.7
|
|
|
$
|
6.1
|
|
|
Other expense, net(2)
|
Amortization of prior service cost
|
|
1.2
|
|
|
0.9
|
|
|
Other expense, net(2)
|
Reclassification before tax
|
|
7.9
|
|
|
7.0
|
|
|
|
|
|
(1.0
|
)
|
|
(1.0
|
)
|
|
Income tax provision
|
Reclassification net of tax
|
|
$
|
6.9
|
|
|
$
|
6.0
|
|
|
|
|
|
|
|
|
|
|
Net losses reclassified from accumulated other comprehensive loss
|
|
$
|
3.7
|
|
|
$
|
7.1
|
|
|
|
(1) (Gains) losses included within the Condensed Consolidated Statements of Operations for the six months ended June 30, 2020 and 2019, respectively.
(2) These accumulated other comprehensive loss components are included in the computation of net periodic pension and postretirement benefit cost. See Note 14 for additional information on the Company’s defined benefit pension plans.
Share Repurchase Program
During the three months ended June 30, 2020, the Company did not purchase any shares directly or enter into any accelerated share repurchase (“ASR”) agreements as a result of its suspension of share repurchases until business visibility improves. During the three months ended March 31, 2020, the Company entered into ASR agreements with a financial institution to repurchase an aggregate of $55.0 million of shares of its common stock. The Company received approximately 970,141 shares during the three months ended March 31, 2020 related to the ASR agreements. The specific number of shares the Company ultimately repurchased was determined at the completion of the term of the ASR agreements based on the daily volume-weighted average share price of the Company’s common stock less an agreed upon discount. Upon settlement of the ASR agreements, the Company was entitled to receive additional shares of common stock or, under certain circumstances, was required to remit a settlement amount. All shares received under the ASR agreements were retired upon receipt, and the excess of the purchase price over par value per share was recorded to a combination of “Additional paid-in capital” and “Retained earnings” within the Company’s Condensed Consolidated Balance Sheets.
As of June 30, 2020, the remaining amount authorized to be repurchased under board-approved share repurchase authorizations was approximately $245.0 million, which has no expiration date.
Notes to Condensed Consolidated Financial Statements - Continued
(unaudited)
13. ACCOUNTS RECEIVABLE SALES AGREEMENTS
The Company has accounts receivable sales agreements that permit the sale, on an ongoing basis, of a majority of its wholesale receivables in North America, Europe and Brazil to its U.S., Canadian, European and Brazilian finance joint ventures. As of June 30, 2020 and December 31, 2019, the cash received from receivables sold under the U.S., Canadian, European and Brazilian accounts receivable sales agreements was approximately $1.5 billion and $1.6 billion, respectively.
Under the terms of the accounts receivable sales agreements in North America, Europe and Brazil, the Company pays an annual fee related to the servicing of the receivables sold. The Company also pays the respective AGCO Finance entities a subsidized interest payment with respect to the accounts receivable sales agreements, calculated based upon LIBOR plus a margin on any non-interest bearing accounts receivable outstanding and sold under the accounts receivable sales agreements. These fees are reflected within losses on the sales of receivables included within “Other expense, net” in the Company’s Condensed Consolidated Statements of Operations. The Company does not service the receivables after the sales occur and does not maintain any direct retained interest in the receivables. The Company reviewed its accounting for the accounts receivable sales agreements and determined that these facilities should be accounted for as off-balance sheet transactions.
Losses on sales of receivables associated with the accounts receivable sales agreements discussed above, reflected within “Other expense, net” in the Company’s Condensed Consolidated Statements of Operations, were approximately $4.3 million and $12.4 million, respectively, during the three and six months ended June 30, 2020. Losses on sales of receivables associated with the accounts receivable sales agreements discussed above, reflected within “Other expense, net” in the Company’s Condensed Consolidated Statements of Operations, were approximately $11.0 million and $19.7 million, respectively, during the three and six months ended June 30, 2019.
The Company’s finance joint ventures in Europe, Brazil and Australia also provide wholesale financing directly to the Company’s dealers. The receivables associated with these arrangements are without recourse to the Company. The Company does not service the receivables after the sale occurs and does not maintain any direct retained interest in the receivables. As of June 30, 2020 and December 31, 2019, these finance joint ventures had approximately $77.3 million and $104.3 million, respectively, of outstanding accounts receivable associated with these arrangements. The Company reviewed its accounting for these arrangements and determined that these arrangements should be accounted for as off-balance sheet transactions.
In addition, the Company sells certain trade receivables under factoring arrangements to other financial institutions around the world. The Company reviewed the sale of such receivables and determined that these arrangements should be accounted for as off-balance sheet transactions.
Notes to Condensed Consolidated Financial Statements - Continued
(unaudited)
14. PENSION AND POSTRETIREMENT BENEFIT PLANS
Net periodic pension and postretirement benefit cost for the Company’s defined pension and postretirement benefit plans for the three and six months ended June 30, 2020 and 2019 are set forth below (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
Pension benefits
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Service cost
|
|
$
|
4.0
|
|
|
$
|
3.9
|
|
|
$
|
8.0
|
|
|
$
|
7.8
|
|
Interest cost
|
|
4.1
|
|
|
5.3
|
|
|
8.2
|
|
|
10.6
|
|
Expected return on plan assets
|
|
(7.0
|
)
|
|
(7.1
|
)
|
|
(14.1
|
)
|
|
(14.3
|
)
|
Amortization of net actuarial losses
|
|
3.2
|
|
|
3.0
|
|
|
6.6
|
|
|
6.1
|
|
Amortization of prior service cost
|
|
0.6
|
|
|
0.4
|
|
|
1.1
|
|
|
0.8
|
|
Net periodic pension cost
|
|
$
|
4.9
|
|
|
$
|
5.5
|
|
|
$
|
9.8
|
|
|
$
|
11.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
Postretirement benefits
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Interest cost
|
|
$
|
0.3
|
|
|
$
|
0.3
|
|
|
$
|
0.6
|
|
|
$
|
0.7
|
|
Amortization of net actuarial losses
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
Amortization of prior service cost
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
Net periodic postretirement benefit cost
|
|
$
|
0.4
|
|
|
$
|
0.4
|
|
|
$
|
0.8
|
|
|
$
|
0.8
|
|
The components of net periodic pension and postretirement benefits cost, other than the service cost component, are included in “Other expense, net” in the Company’s Condensed Consolidated Statements of Operations.
The following table summarizes the activity in accumulated other comprehensive loss related to the Company’s defined pension and postretirement benefit plans during the six months ended June 30, 2020 (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Before-Tax Amount
|
|
Income Tax
|
|
After-Tax Amount
|
Accumulated other comprehensive loss as of December 31, 2019
|
|
$
|
(393.2
|
)
|
|
$
|
(96.8
|
)
|
|
$
|
(296.4
|
)
|
Amortization of net actuarial losses
|
|
6.7
|
|
|
0.9
|
|
|
5.8
|
|
Amortization of prior service cost
|
|
1.2
|
|
|
0.1
|
|
|
1.1
|
|
Accumulated other comprehensive loss as of June 30, 2020
|
|
$
|
(385.3
|
)
|
|
$
|
(95.8
|
)
|
|
$
|
(289.5
|
)
|
During the six months ended June 30, 2020, the Company made approximately $17.1 million of contributions to its defined pension benefit plans. The Company currently estimates its minimum contributions for 2020 to its defined pension benefit plans will aggregate approximately $32.2 million.
During the six months ended June 30, 2020, the Company made approximately $0.7 million of contributions to its postretirement health care and life insurance benefit plans. The Company currently estimates that it will make approximately $1.6 million of contributions to its postretirement health care and life insurance benefit plans during 2020.
Notes to Condensed Consolidated Financial Statements - Continued
(unaudited)
15. FAIR VALUE OF FINANCIAL INSTRUMENTS
The Company categorizes its assets and liabilities into one of three levels based on the assumptions used in valuing the asset or liability. Estimates of fair value for financial assets and liabilities are based on a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Observable inputs (highest level) reflect market data obtained from independent sources, while unobservable inputs (lowest level) reflect internally developed market assumptions. In accordance with this guidance, fair value measurements are classified under the following hierarchy:
|
|
•
|
Level 1 - Quoted prices in active markets for identical assets or liabilities.
|
|
|
•
|
Level 2 - Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations in which all significant inputs are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
|
|
|
•
|
Level 3 - Model-derived valuations in which one or more significant inputs are unobservable.
|
The Company categorizes its pension plan assets into one of the three levels of the fair value hierarchy.
The Company enters into foreign currency and interest rate swap contracts. The fair values of the Company’s derivative instruments are determined using discounted cash flow valuation models. The significant inputs used in these models are readily available in public markets, or can be derived from observable market transactions, and therefore have been classified as Level 2. Inputs used in these discounted cash flow valuation models for derivative instruments include the applicable exchange rates, forward rates or interest rates. Such models used for option contracts also use implied volatility. See Note 11 for additional information on the Company’s derivative instruments and hedging activities.
Assets and liabilities measured at fair value on a recurring basis as of June 30, 2020 and December 31, 2019 are summarized below (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of June 30, 2020
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
Derivative assets
|
$
|
—
|
|
|
$
|
56.7
|
|
|
$
|
—
|
|
|
$
|
56.7
|
|
Derivative liabilities
|
—
|
|
|
17.1
|
|
|
—
|
|
|
17.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2019
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
Derivative assets
|
$
|
—
|
|
|
$
|
39.3
|
|
|
$
|
—
|
|
|
$
|
39.3
|
|
Derivative liabilities
|
—
|
|
|
15.0
|
|
|
—
|
|
|
15.0
|
|
The carrying amounts of long-term debt under the Company’s senior term loan due 2022, 1.002% senior term loan due 2025 and senior term loans due between 2021 and 2028 approximate fair value based on the borrowing rates currently available to the Company for loans with similar terms and average maturities. See Note 5 for additional information on the Company’s long-term debt.
Notes to Condensed Consolidated Financial Statements - Continued
(unaudited)
16. SEGMENT REPORTING
The Company’s four reportable segments distribute a full range of agricultural equipment and related replacement parts. The Company evaluates segment performance primarily based on income from operations. Sales for each segment are based on the location of the third-party customer. The Company’s selling, general and administrative expenses and engineering expenses are generally charged to each segment based on the region and division where the expenses are incurred. As a result, the components of income from operations for one segment may not be comparable to another segment. Segment results for the three and six months ended June 30, 2020 and 2019 and assets as of June 30, 2020 and December 31, 2019 based on the Company’s reportable segments are as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
North America
|
|
South America
|
|
Europe/Middle East
|
|
Asia/Pacific/Africa
|
|
Consolidated
|
2020
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
555.8
|
|
|
$
|
178.5
|
|
|
$
|
1,125.0
|
|
|
$
|
147.5
|
|
|
$
|
2,006.8
|
|
Income from operations
|
|
64.7
|
|
|
5.5
|
|
|
91.0
|
|
|
14.0
|
|
|
175.2
|
|
Depreciation
|
|
15.2
|
|
|
6.1
|
|
|
26.4
|
|
|
3.0
|
|
|
50.7
|
|
Capital expenditures
|
|
8.2
|
|
|
3.3
|
|
|
42.8
|
|
|
2.6
|
|
|
56.9
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
618.9
|
|
|
$
|
185.8
|
|
|
$
|
1,457.2
|
|
|
$
|
160.7
|
|
|
$
|
2,422.6
|
|
Income (loss) from operations
|
|
51.4
|
|
|
(7.1
|
)
|
|
208.8
|
|
|
7.0
|
|
|
260.1
|
|
Depreciation
|
|
16.1
|
|
|
8.2
|
|
|
26.4
|
|
|
3.4
|
|
|
54.1
|
|
Capital expenditures
|
|
11.6
|
|
|
5.0
|
|
|
35.4
|
|
|
2.0
|
|
|
54.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
|
North America
|
|
South America
|
|
Europe/Middle East
|
|
Asia/Pacific/Africa
|
|
Consolidated
|
2020
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
1,107.7
|
|
|
$
|
332.4
|
|
|
$
|
2,238.3
|
|
|
$
|
256.7
|
|
|
$
|
3,935.1
|
|
Income (loss) from operations
|
|
125.6
|
|
|
(3.3
|
)
|
|
193.3
|
|
|
12.7
|
|
|
328.3
|
|
Depreciation
|
|
30.8
|
|
|
13.5
|
|
|
52.4
|
|
|
5.6
|
|
|
102.3
|
|
Capital expenditures
|
|
18.3
|
|
|
10.4
|
|
|
84.5
|
|
|
4.3
|
|
|
117.5
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
1,115.1
|
|
|
$
|
341.9
|
|
|
$
|
2,667.8
|
|
|
$
|
293.6
|
|
|
$
|
4,418.4
|
|
Income (loss) from operations
|
|
82.0
|
|
|
(15.6
|
)
|
|
336.5
|
|
|
10.4
|
|
|
413.3
|
|
Depreciation
|
|
31.7
|
|
|
16.7
|
|
|
52.4
|
|
|
6.3
|
|
|
107.1
|
|
Capital expenditures
|
|
29.9
|
|
|
17.1
|
|
|
64.9
|
|
|
3.0
|
|
|
114.9
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
As of June 30, 2020
|
|
$
|
1,189.8
|
|
|
$
|
640.5
|
|
|
$
|
2,306.5
|
|
|
$
|
487.8
|
|
|
$
|
4,624.6
|
|
As of December 31, 2019
|
|
1,125.6
|
|
|
758.0
|
|
|
2,187.7
|
|
|
430.2
|
|
|
4,501.5
|
|
Notes to Condensed Consolidated Financial Statements - Continued
(unaudited)
A reconciliation from the segment information to the consolidated balances for income from operations and total assets is set forth below (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Segment income from operations
|
$
|
175.2
|
|
|
$
|
260.1
|
|
|
$
|
328.3
|
|
|
$
|
413.3
|
|
Corporate expenses
|
(29.1
|
)
|
|
(32.9
|
)
|
|
(63.5
|
)
|
|
(64.7
|
)
|
Amortization of intangibles
|
(14.9
|
)
|
|
(15.4
|
)
|
|
(29.9
|
)
|
|
(30.7
|
)
|
Goodwill impairment charge
|
(20.0
|
)
|
|
—
|
|
|
(20.0
|
)
|
|
—
|
|
Stock compensation expense
|
(10.1
|
)
|
|
(12.2
|
)
|
|
(12.6
|
)
|
|
(24.2
|
)
|
Restructuring expenses
|
(3.8
|
)
|
|
—
|
|
|
(4.6
|
)
|
|
(1.7
|
)
|
Consolidated income from operations
|
$
|
97.3
|
|
|
$
|
199.6
|
|
|
$
|
197.7
|
|
|
$
|
292.0
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2020
|
|
December 31, 2019
|
Segment assets
|
$
|
4,624.6
|
|
|
$
|
4,501.5
|
|
Cash and cash equivalents
|
404.4
|
|
|
432.8
|
|
Investments in affiliates
|
387.6
|
|
|
380.2
|
|
Deferred tax assets, other current and noncurrent assets
|
644.8
|
|
|
645.2
|
|
Intangible assets, net
|
470.0
|
|
|
501.7
|
|
Goodwill
|
1,246.6
|
|
|
1,298.3
|
|
Consolidated total assets
|
$
|
7,778.0
|
|
|
$
|
7,759.7
|
|
17. COMMITMENTS AND CONTINGENCIES
Off-Balance Sheet Arrangements
Guarantees
The Company maintains a remarketing agreement with its U.S. finance joint venture, AGCO Finance LLC, whereby the Company is obligated to repurchase up to $6.0 million of repossessed equipment each calendar year. The Company believes that any losses that it might incur on the resale of this equipment will not be material, due to the fair value of the underlying equipment.
At June 30, 2020, the Company has outstanding guarantees of indebtedness owed to third parties of approximately $25.4 million, primarily related to dealer and end-user financing of equipment. Such guarantees generally obligate the Company to repay outstanding finance obligations owed to financial institutions if dealers or end users default on such loans through 2026. Losses under such guarantees historically have been insignificant. In addition, the Company generally would expect to be able to recover a significant portion of the amounts paid under such guarantees from the sale of the underlying financed farm equipment, as the fair value of such equipment is expected to be sufficient to offset a substantial portion of the amounts paid. The Company also has obligations to guarantee indebtedness owed to certain of its finance joint ventures if dealers or end users default on loans. Losses under such guarantees historically have been insignificant, and the guarantees are not material. The Company believes the credit risk associated with these guarantees is not material.
In addition, at June 30, 2020, the Company had accrued approximately $21.5 million of outstanding guarantees of residual values that may be owed to its finance joint ventures in the United States and Canada due upon expiration of certain eligible operating leases between the finance joint ventures and end users. The maximum potential amount of future payments under the guarantees is approximately $56.3 million.
Notes to Condensed Consolidated Financial Statements - Continued
(unaudited)
Leases
Lease payment amounts for operating and finance leases with remaining terms greater than one year as of June 30, 2020 and December 31, 2019 were as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2020
|
|
December 31, 2019
|
|
|
Operating Leases(1)
|
|
Finance Leases
|
|
Operating Leases(1)
|
|
Finance Leases
|
2020
|
|
$
|
25.3
|
|
|
$
|
2.6
|
|
|
$
|
48.3
|
|
|
$
|
4.8
|
|
2021
|
|
44.5
|
|
|
2.9
|
|
|
40.8
|
|
|
2.7
|
|
2022
|
|
34.4
|
|
|
1.3
|
|
|
31.5
|
|
|
1.2
|
|
2023
|
|
26.1
|
|
|
1.0
|
|
|
24.1
|
|
|
0.9
|
|
2024
|
|
17.7
|
|
|
0.6
|
|
|
16.7
|
|
|
0.6
|
|
Thereafter
|
|
58.3
|
|
|
8.7
|
|
|
61.6
|
|
|
8.7
|
|
Total lease payments
|
|
206.3
|
|
|
17.1
|
|
|
223.0
|
|
|
18.9
|
|
Less: imputed interest(2)
|
|
(24.3
|
)
|
|
(2.2
|
)
|
|
(32.1
|
)
|
|
(2.4
|
)
|
Present value of leased liabilities
|
|
$
|
182.0
|
|
|
$
|
14.9
|
|
|
$
|
190.9
|
|
|
$
|
16.5
|
|
(1) Operating lease payments include options to extend or terminate at the Company's sole discretion, which are included in the determination of lease term when they are reasonably certain to be exercised.
(2) Calculated for each lease using either the implicit interest rate or the incremental borrowing rate when the implicit interest rate is not readily available.
Other
At June 30, 2020, the Company had outstanding designated and non-designated foreign exchange contracts with a gross notional amount of approximately $2,677.7 million. The outstanding contracts as of June 30, 2020 range in maturity through December 2020 (see Note 11).
The Company sells a majority of its wholesale receivables in North America, Europe and Brazil to its U.S., Canadian, European and Brazilian finance joint ventures. The Company also sells certain accounts receivable under factoring arrangements to financial institutions around the world. The Company reviewed the sale of such receivables and determined that these facilities should be accounted for as off-balance sheet transactions.
Contingencies
In August 2008, as part of routine audits, the Brazilian taxing authorities disallowed deductions relating to the amortization of certain goodwill recognized in connection with a reorganization of the Company’s Brazilian operations and the related transfer of certain assets to the Company’s Brazilian subsidiaries. The amount of the tax disallowance through June 30, 2020, not including interest and penalties, was approximately 131.5 million Brazilian reais (or approximately $24.0 million). The amount ultimately in dispute will be significantly greater because of interest and penalties. The Company has been advised by its legal and tax advisors that its position with respect to the deductions is allowable under the tax laws of Brazil. The Company is contesting the disallowance and believes that it is not likely that the assessment, interest or penalties will be required to be paid. However, the ultimate outcome will not be determined until the Brazilian tax appeal process is complete, which could take several years.
The Company is a party to various other legal claims and actions incidental to its business. The Company believes that none of these claims or actions, either individually or in the aggregate, are material to its business or financial statements as a whole, including its results of operations and financial condition.
Notes to Condensed Consolidated Financial Statements - Continued
(unaudited)
18. REVENUE
Contract Liabilities
Contract liabilities relate to the following: (1) unrecognized revenues where advance payment of consideration precedes the Company’s performance with respect to extended warranty and maintenance contracts and where the performance obligation is satisfied over time, (2) unrecognized revenues where advance payment of consideration precedes the Company’s performance with respect to certain grain storage and protein production systems and where the performance obligation is satisfied over time and (3) unrecognized revenues where advance payment of consideration precedes the Company’s performance with respect to technology services and where the performance obligation is satisfied over time.
Significant changes in the balance of contract liabilities for the three and six months ended June 30, 2020 and 2019 were as follows (in millions):
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
2020
|
|
2019
|
Balance at beginning of period
|
$
|
111.6
|
|
|
$
|
84.5
|
|
Advance consideration received
|
35.7
|
|
|
38.3
|
|
Revenue recognized during the period for extended warranty contracts, maintenance services and technology services
|
(12.0
|
)
|
|
(7.9
|
)
|
Revenue recognized during the period related to grain storage and protein production systems
|
(17.2
|
)
|
|
(27.2
|
)
|
Foreign currency translation
|
0.6
|
|
|
0.3
|
|
Balance at June 30
|
$
|
118.7
|
|
|
$
|
88.0
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
|
2020
|
|
2019
|
Balance at beginning of period
|
$
|
104.0
|
|
|
$
|
76.8
|
|
Advance consideration received
|
69.6
|
|
|
63.7
|
|
Revenue recognized during the period for extended warranty contracts, maintenance services and technology services
|
(22.1
|
)
|
|
(14.0
|
)
|
Revenue recognized during the period related to grain storage and protein production systems
|
(29.0
|
)
|
|
(38.6
|
)
|
Foreign currency translation
|
(3.8
|
)
|
|
0.1
|
|
Balance at June 30
|
$
|
118.7
|
|
|
$
|
88.0
|
|
The contract liabilities are classified as either “Accrued expenses” or “Other current liabilities” and “Other noncurrent liabilities” in the Company’s Condensed Consolidated Balance Sheets.
Remaining Performance Obligations
The estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of June 30, 2020 are $24.8 million for the remainder of 2020, $35.9 million in 2021, $24.1 million in 2022, $12.3 million in 2023 and $5.8 million thereafter, and relate primarily to extended warranty contracts. The Company applied the practical expedient in ASU 2014-09 and has not disclosed information about remaining performance obligations that have original expected durations of 12 months or less.
Notes to Condensed Consolidated Financial Statements - Continued
(unaudited)
Disaggregated Revenue
Net sales for the three months ended June 30, 2020 disaggregated by primary geographical markets and major products consisted of the following (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
South America(1)
|
|
Europe/Middle East
|
|
Asia/Pacific/Africa
|
|
Consolidated(1)
|
Primary geographical markets:
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
$
|
452.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
452.1
|
|
Canada
|
|
82.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
82.7
|
|
South America
|
|
—
|
|
|
177.3
|
|
|
—
|
|
|
—
|
|
|
177.3
|
|
Germany
|
|
—
|
|
|
—
|
|
|
294.3
|
|
|
—
|
|
|
294.3
|
|
France
|
|
—
|
|
|
—
|
|
|
221.0
|
|
|
—
|
|
|
221.0
|
|
United Kingdom and Ireland
|
|
—
|
|
|
—
|
|
|
111.1
|
|
|
—
|
|
|
111.1
|
|
Finland and Scandinavia
|
|
—
|
|
|
—
|
|
|
144.6
|
|
|
—
|
|
|
144.6
|
|
Other Europe
|
|
—
|
|
|
—
|
|
|
325.4
|
|
|
—
|
|
|
325.4
|
|
Middle East and Algeria
|
|
—
|
|
|
—
|
|
|
28.6
|
|
|
—
|
|
|
28.6
|
|
Africa
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.6
|
|
|
2.6
|
|
Asia
|
|
—
|
|
|
—
|
|
|
—
|
|
|
85.9
|
|
|
85.9
|
|
Australia and New Zealand
|
|
—
|
|
|
—
|
|
|
—
|
|
|
59.0
|
|
|
59.0
|
|
Mexico, Central America and Caribbean
|
|
21.0
|
|
|
1.2
|
|
|
—
|
|
|
—
|
|
|
22.2
|
|
|
|
$
|
555.8
|
|
|
$
|
178.5
|
|
|
$
|
1,125.0
|
|
|
$
|
147.5
|
|
|
$
|
2,006.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Major products:
|
|
|
|
|
|
|
|
|
|
|
Tractors
|
|
$
|
148.6
|
|
|
$
|
101.0
|
|
|
$
|
682.2
|
|
|
$
|
60.5
|
|
|
$
|
992.3
|
|
Replacement parts
|
|
105.8
|
|
|
16.8
|
|
|
257.4
|
|
|
19.3
|
|
|
399.3
|
|
Grain storage and protein production systems
|
|
142.8
|
|
|
16.9
|
|
|
33.3
|
|
|
48.4
|
|
|
241.4
|
|
Combines, application equipment and other machinery
|
|
158.6
|
|
|
43.9
|
|
|
152.1
|
|
|
19.3
|
|
|
373.9
|
|
|
|
$
|
555.8
|
|
|
$
|
178.5
|
|
|
$
|
1,125.0
|
|
|
$
|
147.5
|
|
|
$
|
2,006.8
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Rounding may impact the summation of amounts.
Notes to Condensed Consolidated Financial Statements - Continued
(unaudited)
Net sales for the three months ended June 30, 2019 disaggregated by primary geographical markets and major products consisted of the following (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America(1)
|
|
South America(1)
|
|
Europe/Middle East
|
|
Asia/Pacific/Africa
|
|
Consolidated(1)
|
Primary geographical markets:
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
$
|
500.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
500.2
|
|
Canada
|
|
91.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
91.9
|
|
South America
|
|
—
|
|
|
182.1
|
|
|
—
|
|
|
—
|
|
|
182.1
|
|
Germany
|
|
—
|
|
|
—
|
|
|
390.6
|
|
|
—
|
|
|
390.6
|
|
France
|
|
—
|
|
|
—
|
|
|
267.5
|
|
|
—
|
|
|
267.5
|
|
United Kingdom and Ireland
|
|
—
|
|
|
—
|
|
|
135.9
|
|
|
—
|
|
|
135.9
|
|
Finland and Scandinavia
|
|
—
|
|
|
—
|
|
|
199.0
|
|
|
—
|
|
|
199.0
|
|
Other Europe
|
|
—
|
|
|
—
|
|
|
443.3
|
|
|
—
|
|
|
443.3
|
|
Middle East and Algeria
|
|
—
|
|
|
—
|
|
|
20.9
|
|
|
—
|
|
|
20.9
|
|
Africa
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29.7
|
|
|
29.7
|
|
Asia
|
|
—
|
|
|
—
|
|
|
—
|
|
|
77.6
|
|
|
77.6
|
|
Australia and New Zealand
|
|
—
|
|
|
—
|
|
|
—
|
|
|
53.4
|
|
|
53.4
|
|
Mexico, Central America and Caribbean
|
|
26.9
|
|
|
3.6
|
|
|
—
|
|
|
—
|
|
|
30.5
|
|
|
|
$
|
618.9
|
|
|
$
|
185.8
|
|
|
$
|
1,457.2
|
|
|
$
|
160.7
|
|
|
$
|
2,422.6
|
|
|
|
|
|
|
|
|
|
|
|
|
Major products:
|
|
|
|
|
|
|
|
|
|
|
Tractors
|
|
$
|
187.4
|
|
|
$
|
106.3
|
|
|
$
|
994.1
|
|
|
$
|
62.0
|
|
|
$
|
1,349.8
|
|
Replacement parts
|
|
98.7
|
|
|
21.4
|
|
|
246.4
|
|
|
17.2
|
|
|
383.7
|
|
Grain storage and protein production systems
|
|
166.4
|
|
|
17.7
|
|
|
61.6
|
|
|
61.2
|
|
|
306.9
|
|
Combines, application equipment and other machinery
|
|
166.5
|
|
|
40.4
|
|
|
155.1
|
|
|
20.3
|
|
|
382.3
|
|
|
|
$
|
618.9
|
|
|
$
|
185.8
|
|
|
$
|
1,457.2
|
|
|
$
|
160.7
|
|
|
$
|
2,422.6
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Rounding may impact the summation of amounts.
Notes to Condensed Consolidated Financial Statements - Continued
(unaudited)
Net sales for the six months ended June 30, 2020 disaggregated by primary geographical markets and major products consisted of the following (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
South America
|
|
Europe/Middle East(1)
|
|
Asia/Pacific/Africa(1)
|
|
Consolidated
|
Primary geographical markets:
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
$
|
919.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
919.5
|
|
Canada
|
|
144.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
144.4
|
|
South America
|
|
—
|
|
|
329.2
|
|
|
—
|
|
|
—
|
|
|
329.2
|
|
Germany
|
|
—
|
|
|
—
|
|
|
594.4
|
|
|
—
|
|
|
594.4
|
|
France
|
|
—
|
|
|
—
|
|
|
435.7
|
|
|
—
|
|
|
435.7
|
|
United Kingdom and Ireland
|
|
—
|
|
|
—
|
|
|
223.6
|
|
|
—
|
|
|
223.6
|
|
Finland and Scandinavia
|
|
—
|
|
|
—
|
|
|
276.9
|
|
|
—
|
|
|
276.9
|
|
Other Europe
|
|
—
|
|
|
—
|
|
|
649.6
|
|
|
—
|
|
|
649.6
|
|
Middle East and Algeria
|
|
—
|
|
|
—
|
|
|
58.1
|
|
|
—
|
|
|
58.1
|
|
Africa
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16.0
|
|
|
16.0
|
|
Asia
|
|
—
|
|
|
—
|
|
|
—
|
|
|
133.9
|
|
|
133.9
|
|
Australia and New Zealand
|
|
—
|
|
|
—
|
|
|
—
|
|
|
106.8
|
|
|
106.8
|
|
Mexico, Central America and Caribbean
|
|
43.8
|
|
|
3.2
|
|
|
—
|
|
|
—
|
|
|
47.0
|
|
|
|
$
|
1,107.7
|
|
|
$
|
332.4
|
|
|
$
|
2,238.3
|
|
|
$
|
256.7
|
|
|
$
|
3,935.1
|
|
|
|
|
|
|
|
|
|
|
|
|
Major products:
|
|
|
|
|
|
|
|
|
|
|
Tractors
|
|
$
|
317.0
|
|
|
$
|
176.9
|
|
|
$
|
1,452.5
|
|
|
$
|
107.4
|
|
|
$
|
2,053.8
|
|
Replacement parts
|
|
178.0
|
|
|
36.8
|
|
|
458.0
|
|
|
36.6
|
|
|
709.4
|
|
Grain storage and protein production systems
|
|
239.6
|
|
|
38.8
|
|
|
60.8
|
|
|
77.4
|
|
|
416.6
|
|
Other machinery
|
|
373.1
|
|
|
79.9
|
|
|
266.9
|
|
|
35.4
|
|
|
755.3
|
|
|
|
$
|
1,107.7
|
|
|
$
|
332.4
|
|
|
$
|
2,238.3
|
|
|
$
|
256.7
|
|
|
$
|
3,935.1
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Rounding may impact the summation of amounts.
Notes to Condensed Consolidated Financial Statements - Continued
(unaudited)
Net sales for the six months ended June 30, 2019 disaggregated by primary geographical markets and major products consisted of the following (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America(1)
|
|
South America
|
|
Europe/Middle East
|
|
Asia/Pacific/Africa(1)
|
|
Consolidated(1)
|
Primary geographical markets:
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
$
|
912.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
912.8
|
|
Canada
|
|
153.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
153.1
|
|
South America
|
|
—
|
|
|
335.0
|
|
|
—
|
|
|
—
|
|
|
335.0
|
|
Germany
|
|
—
|
|
|
—
|
|
|
660.9
|
|
|
—
|
|
|
660.9
|
|
France
|
|
—
|
|
|
—
|
|
|
505.6
|
|
|
—
|
|
|
505.6
|
|
United Kingdom and Ireland
|
|
—
|
|
|
—
|
|
|
290.2
|
|
|
—
|
|
|
290.2
|
|
Finland and Scandinavia
|
|
—
|
|
|
—
|
|
|
368.6
|
|
|
—
|
|
|
368.6
|
|
Other Europe
|
|
—
|
|
|
—
|
|
|
807.5
|
|
|
—
|
|
|
807.5
|
|
Middle East and Algeria
|
|
—
|
|
|
—
|
|
|
35.0
|
|
|
—
|
|
|
35.0
|
|
Africa
|
|
—
|
|
|
—
|
|
|
—
|
|
|
50.0
|
|
|
50.0
|
|
Asia
|
|
—
|
|
|
—
|
|
|
—
|
|
|
136.8
|
|
|
136.8
|
|
Australia and New Zealand
|
|
—
|
|
|
—
|
|
|
—
|
|
|
106.8
|
|
|
106.8
|
|
Mexico, Central America and Caribbean
|
|
49.3
|
|
|
6.9
|
|
|
—
|
|
|
—
|
|
|
56.2
|
|
|
|
$
|
1,115.1
|
|
|
$
|
341.9
|
|
|
$
|
2,667.8
|
|
|
$
|
293.6
|
|
|
$
|
4,418.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Major products:
|
|
|
|
|
|
|
|
|
|
|
Tractors
|
|
$
|
327.6
|
|
|
$
|
190.6
|
|
|
$
|
1,823.8
|
|
|
$
|
127.0
|
|
|
$
|
2,469.0
|
|
Replacement parts
|
|
160.2
|
|
|
43.3
|
|
|
448.3
|
|
|
33.9
|
|
|
685.7
|
|
Grain storage and protein production systems
|
|
270.2
|
|
|
37.4
|
|
|
104.1
|
|
|
98.3
|
|
|
510.0
|
|
Other machinery
|
|
357.2
|
|
|
70.6
|
|
|
291.6
|
|
|
34.3
|
|
|
753.7
|
|
|
|
$
|
1,115.1
|
|
|
$
|
341.9
|
|
|
$
|
2,667.8
|
|
|
$
|
293.6
|
|
|
$
|
4,418.4
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Rounding may impact the summation of amounts.