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• | "Welbilt" and the "Company" refer to Welbilt, Inc. and its consolidated subsidiaries, after giving effect to the Spin-Off, or, in the case of information as of dates or for periods prior to its separation from MTW, the combined entities of the Foodservice business, and certain other assets and liabilities that were historically held at the MTW corporate level, but were specifically identifiable and attributable to the Foodservice business; and |
• | "MTW" refers to The Manitowoc Company, Inc. and its consolidated subsidiaries, other than, for all periods following the Spin-Off, Welbilt. |
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Years | |
Building and improvements | 2 - 40 |
Machinery, equipment and tooling | 2 - 20 |
Furniture and fixtures | 3 - 15 |
Computer hardware and software | 2 - 7 |
Useful lives | |
Patents | 10-20 years |
Engineering drawings | 15 years |
Customer relationships | 10-20 years |
• | Discount Rate - The discount rate assumptions are based on the interest rate of non-callable high-quality corporate bonds, with appropriate consideration of our pension plans’ participants’ demographics and benefit payment terms. |
• | Expected Return on Plan Assets - The expected return on plan assets assumptions are based on our expectation of the long-term average rate of return on assets in the pension funds, which is reflective of the current and projected asset mix of the funds and considers the historical returns earned on the funds. |
• | Retirement and Mortality Rates - The retirement and mortality rate assumptions are based primarily on actual plan experience and mortality tables. |
• | Health Care Cost Trend Rates - The health care cost trend rate assumptions are developed based on historical cost data, near-term outlook and an assessment of likely long-term trends. |
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Level 1 | Unadjusted quoted prices in active markets for identical assets or liabilities |
Level 2 | Unadjusted quoted prices in active markets for similar assets or liabilities, or |
Level 3 | Unobservable inputs for the asset or liability |
Fair Value as of December 31, 2017 | ||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Current assets: | ||||||||||||||||
Foreign currency exchange contracts | $ | — | $ | 1.1 | $ | — | $ | 1.1 | ||||||||
Commodity contracts | — | 1.7 | — | 1.7 | ||||||||||||
Interest rate swap contracts | — | 1.7 | — | 1.7 | ||||||||||||
Total current assets at fair value | — | 4.5 | — | 4.5 | ||||||||||||
Non-current assets: | ||||||||||||||||
Commodity contracts | — | 0.6 | — | 0.6 | ||||||||||||
Interest rate swap contracts | — | 2.3 | — | 2.3 | ||||||||||||
Total non-current assets at fair value | — | 2.9 | — | 2.9 | ||||||||||||
Total assets at fair value | $ | — | $ | 7.4 | $ | — | $ | 7.4 | ||||||||
Current liabilities: | ||||||||||||||||
Foreign currency exchange contracts | $ | — | $ | 1.1 | $ | — | $ | 1.1 | ||||||||
Commodity contracts | — | 0.1 | — | 0.1 | ||||||||||||
Total current liabilities at fair value | — | 1.2 | — | 1.2 | ||||||||||||
Non-current liabilities: | ||||||||||||||||
Interest rate swap contracts | — | 17.7 | — | 17.7 | ||||||||||||
Total non-current liabilities at fair value | — | 17.7 | — | 17.7 | ||||||||||||
Total liabilities at fair value | $ | — | $ | 18.9 | $ | — | $ | 18.9 |
Fair Value as of December 31, 2016 | ||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Current assets: | ||||||||||||||||
Foreign currency exchange contracts | $ | — | $ | 0.6 | $ | — | $ | 0.6 | ||||||||
Commodity contracts | — | 0.9 | — | 0.9 | ||||||||||||
Total current assets at fair value | — | 1.5 | — | 1.5 | ||||||||||||
Non-current assets: | ||||||||||||||||
Commodity contracts | — | 0.2 | — | 0.2 | ||||||||||||
Total non-current assets at fair value | — | 0.2 | — | 0.2 | ||||||||||||
Total assets at fair value | $ | — | $ | 1.7 | $ | — | $ | 1.7 | ||||||||
Current liabilities: | ||||||||||||||||
Foreign currency exchange contracts | $ | — | $ | 1.0 | $ | — | $ | 1.0 | ||||||||
Commodity contracts | — | 0.1 | — | 0.1 | ||||||||||||
Total current liabilities at fair value | — | 1.1 | — | 1.1 | ||||||||||||
Total liabilities at fair value | $ | — | $ | 1.1 | $ | — | $ | 1.1 |
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Units Hedged | |||||||||||
Commodity | 2017 | 2016 | 2015 | Unit | |||||||
Aluminum | 1,620 | 1,663 | 1,215 | MT | |||||||
Copper | 667 | 746 | 472 | MT | |||||||
Natural gas | — | 56,416 | 49,396 | MMBtu | |||||||
Steel | 7,713 | 8,663 | 11,073 | Short tons |
Units Hedged | |||||||||
Currency | 2017 | 2016 | 2015 | ||||||
Canadian Dollar | 18,080,000 | 26,130,000 | 587,556 | ||||||
European Euro | 8,545,000 | 11,261,848 | 231,810 | ||||||
British Pound | 7,807,744 | 4,191,763 | 113,115 | ||||||
Mexican Peso | 126,400,000 | 148,200,000 | 28,504,800 | ||||||
Thailand Baht | — | 23,231,639 | — | ||||||
Singapore Dollar | 1,765,000 | 4,375,000 | — |
Derivatives in cash flow hedging relationships (in millions) | Pretax gain (loss) recognized in AOCI (effective portion) | Location of gain (loss) reclassified from AOCI into income (effective portion) | Pretax gain (loss) reclassified from AOCI into income (effective portion) | |||||||||||||||||||||||
2017 | 2016 | 2015 | 2017 | 2016 | 2015 | |||||||||||||||||||||
Foreign currency exchange contracts | $ | 3.8 | $ | (0.1 | ) | $ | (0.8 | ) | Cost of sales | $ | 3.3 | $ | — | $ | (1.4 | ) | ||||||||||
Commodity contracts | 2.4 | 2.2 | (5.3 | ) | Cost of sales | 1.1 | (1.5 | ) | (3.4 | ) | ||||||||||||||||
Interest rate swap contracts | 2.8 | — | — | Interest expense | — | — | — | |||||||||||||||||||
Total | $ | 9.0 | $ | 2.1 | $ | (6.1 | ) | $ | 4.4 | $ | (1.5 | ) | $ | (4.8 | ) |
Derivatives in cash flow hedging relationships (in millions) | Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | Location of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | ||||||||||||
2017 | 2016 | 2015 | ||||||||||||
Commodity contracts | $ | 0.2 | $ | — | $ | 0.1 | Cost of sales | |||||||
Total | $ | 0.2 | $ | — | $ | 0.1 |
Derivatives in fair value hedging relationships (in millions) | Gain/(Loss) on Swap | Income Statement Classification | Gain/(Loss) on Borrowings | |||||||||||||||||||||||
2017 | 2016 | 2015 | 2017 | 2016 | 2015 | |||||||||||||||||||||
Interest rate swap contract | $ | (9.0 | ) | $ | — | $ | — | Interest Expense | $ | 8.7 | $ | — | $ | — | ||||||||||||
Total | $ | (9.0 | ) | $ | — | $ | — | $ | 8.7 | $ | — | $ | — |
Derivatives in net investments hedging relationships (in millions) | Pretax gain (loss) recognized in AOCI (effective portion) | Location of gain (loss) reclassified from AOCI into income (effective portion) | Amount of gain (loss) reclassified from AOCI into income (effective portion) | |||||||||||||||||||||||
2017 | 2016 | 2015 | 2017 | 2016 | 2015 | |||||||||||||||||||||
Interest rate swap contract | $ | (7.5 | ) | $ | — | $ | — | Selling, general and administrative expenses | $ | — | $ | — | $ | — | ||||||||||||
Total | $ | (7.5 | ) | $ | — | $ | — | $ | — | $ | — | $ | — |
Units Hedged | |||||||||||||
Commodity | 2017 | 2016 | 2015 | Unit | Type | ||||||||
Aluminum | — | 28 | — | MT | Cash flow | ||||||||
Steel | — | 340 | — | Short tons | Cash flow |
Units Hedged | |||||||||||||
Currency | 2017 | 2016 | 2015 | Recognized Location | Purpose | ||||||||
Canadian Dollar | — | — | 1,117,850 | Other expense (income) — net | Accounts payable and receivable settlement | ||||||||
European Euro | 69,300,000 | 16,000,000 | — | Other expense (income) — net | Accounts payable and receivable settlement | ||||||||
Swiss Franc | 4,800,000 | 3,150,000 | — | Other expense (income) — net | Accounts payable and receivable settlement | ||||||||
British Pound | 14,912,019 | 8,192,692 | — | Other expense (income) — net | Accounts payable and receivable settlement | ||||||||
Singapore Dollar | 28,127,000 | — | — | Other expense (income) — net | Accounts payable and receivable settlement |
Derivatives NOT designated as hedging instruments (in millions) | Amount of gain (loss) recognized in income on derivative | Location of gain (loss) recognized in income on derivative | ||||||||||||
Year Ended | ||||||||||||||
2017 | 2016 | 2015 | ||||||||||||
Foreign currency exchange contracts | $ | (6.5 | ) | $ | (0.2 | ) | $ | 0.1 | Other expense (income) — net | |||||
Commodity contracts — short-term | — | 0.8 | (0.7 | ) | Other expense (income) — net | |||||||||
Commodity contracts — long-term | — | — | (0.1 | ) | Other expense (income) — net | |||||||||
Total | $ | (6.5 | ) | $ | 0.6 | $ | (0.7 | ) |
Asset Derivatives | ||||||||||
(in millions) | Balance Sheet Location | Fair Value | ||||||||
2017 | 2016 | |||||||||
Derivatives designated as hedging instruments: | ||||||||||
Foreign currency exchange contracts | Prepaids and other current assets | $ | 1.1 | $ | 0.6 | |||||
Commodity contracts | Prepaids and other current assets | 1.7 | 0.9 | |||||||
Interest rate swap contracts | Prepaids and other current assets | 1.7 | — | |||||||
Commodity contracts | Other non-current assets | 0.6 | 0.2 | |||||||
Interest rate swap contracts | Other non-current assets | 2.3 | — | |||||||
Total derivatives designated as hedging instruments | $ | 7.4 | $ | 1.7 | ||||||
Total asset derivatives | $ | 7.4 | $ | 1.7 |
Liability Derivatives | ||||||||||
(in millions) | Balance Sheet Location | Fair Value | ||||||||
2017 | 2016 | |||||||||
Derivatives designated as hedging instruments: | ||||||||||
Foreign currency exchange contracts | Accrued expenses and other liabilities | $ | 0.6 | $ | 0.8 | |||||
Commodity contracts | Accrued expenses and other liabilities | 0.1 | 0.1 | |||||||
Interest rate swap contracts | Other long-term liabilities | 17.7 | — | |||||||
Total derivatives designated as hedging instruments | $ | 18.4 | $ | 0.9 | ||||||
Derivatives NOT designated as hedging instruments: | ||||||||||
Foreign currency exchange contracts | Accrued expenses and other liabilities | $ | 0.5 | $ | 0.2 | |||||
Total derivatives NOT designated as hedging instruments | $ | 0.5 | $ | 0.2 | ||||||
Total liability derivatives | $ | 18.9 | $ | 1.1 |
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(in millions) | 2017 | 2016 | ||||||
Inventories — gross: | ||||||||
Raw materials | $ | 73.9 | $ | 68.2 | ||||
Work-in-process | 18.9 | 18.3 | ||||||
Finished goods | 86.9 | 85.1 | ||||||
Total inventories — gross | 179.7 | 171.6 | ||||||
Excess and obsolete inventory reserve | (23.5 | ) | (22.5 | ) | ||||
Net inventories at FIFO cost | 156.2 | 149.1 | ||||||
Excess of FIFO costs over LIFO value | (3.9 | ) | (3.5 | ) | ||||
Inventories — net | $ | 152.3 | $ | 145.6 |
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(in millions) | 2017 | 2016 | ||||||
Land | $ | 9.5 | $ | 7.3 | ||||
Building and improvements | 88.9 | 91.3 | ||||||
Machinery, equipment and tooling | 227.3 | 215.1 | ||||||
Furniture and fixtures | 6.0 | 5.8 | ||||||
Computer hardware and software | 55.1 | 52.9 | ||||||
Construction in progress | 15.7 | 11.2 | ||||||
Total cost | 402.5 | 383.6 | ||||||
Less accumulated depreciation | (290.3 | ) | (274.5 | ) | ||||
Property, plant and equipment — net | $ | 112.2 | $ | 109.1 |
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(in millions) | Americas | EMEA | APAC | Total | ||||||||||||
Gross balance as of December 31, 2015 | $ | 1,144.8 | $ | 208.3 | $ | 8.4 | $ | 1,361.5 | ||||||||
Accumulated asset impairments | (312.2 | ) | (203.5 | ) | — | (515.7 | ) | |||||||||
Net balance as of December 31, 2015 | $ | 832.6 | $ | 4.8 | $ | 8.4 | $ | 845.8 | ||||||||
Foreign currency impact | $ | — | $ | (0.1 | ) | $ | (0.4 | ) | $ | (0.5 | ) | |||||
Gross balance as of December 31, 2016 | 1,144.8 | 208.2 | 8.0 | 1,361.0 | ||||||||||||
Accumulated asset impairments | (312.2 | ) | (203.5 | ) | — | (515.7 | ) | |||||||||
Net balance as of December 31, 2016 | $ | 832.6 | $ | 4.7 | $ | 8.0 | $ | 845.3 | ||||||||
Foreign currency impact | $ | — | $ | 0.2 | $ | 0.6 | $ | 0.8 | ||||||||
Gross balance as of December 31, 2017 | 1,144.8 | 208.4 | 8.6 | 1,361.8 | ||||||||||||
Accumulated asset impairments | (312.2 | ) | (203.5 | ) | — | (515.7 | ) | |||||||||
Net balance as of December 31, 2017 | $ | 832.6 | $ | 4.9 | $ | 8.6 | $ | 846.1 |
2017 | 2016 | |||||||||||||||||||||||
(in millions) | Gross Carrying Amount | Accumulated Amortization Amount | Net Book Value | Gross Carrying Amount | Accumulated Amortization Amount | Net Book Value | ||||||||||||||||||
Trademarks and tradenames | $ | 177.5 | $ | — | $ | 177.5 | $ | 172.4 | $ | — | $ | 172.4 | ||||||||||||
Customer relationships | 415.3 | (192.3 | ) | 223.0 | 415.2 | (171.4 | ) | 243.8 | ||||||||||||||||
Patents | 2.8 | (1.7 | ) | 1.1 | 1.6 | (1.6 | ) | — | ||||||||||||||||
Other intangibles | 144.9 | (85.1 | ) | 59.8 | 140.7 | (72.5 | ) | 68.2 | ||||||||||||||||
Total | $ | 740.5 | $ | (279.1 | ) | $ | 461.4 | $ | 729.9 | $ | (245.5 | ) | $ | 484.4 |
(in millions) | ||||
Year ending December 31: | ||||
2018 | $ | 33.7 | ||
2019 | 33.4 | |||
2020 | 33.2 | |||
2021 | 28.8 | |||
2022 | 26.7 | |||
Thereafter | 128.1 | |||
$ | 283.9 |
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(in millions) | 2017 | 2016 | ||||||
Accounts payable: | ||||||||
Trade accounts payable | $ | 103.6 | $ | 108.4 | ||||
Total accounts payable | $ | 103.6 | $ | 108.4 | ||||
Accrued expenses and other liabilities: | ||||||||
Interest payable | $ | 7.8 | $ | 15.7 | ||||
Income taxes payable | 6.1 | 2.5 | ||||||
Employee related expenses | 30.8 | 29.8 | ||||||
Restructuring expenses | 5.0 | 3.3 | ||||||
Profit sharing and incentives | 11.5 | 14.2 | ||||||
Accrued rebates | 50.0 | 56.0 | ||||||
Deferred revenue - current | 4.2 | 4.4 | ||||||
Customer advances | 2.6 | 7.4 | ||||||
Product liability | 1.4 | 2.3 | ||||||
Miscellaneous accrued expenses | 42.3 | 38.9 | ||||||
Total accrued expenses and other liabilities | $ | 161.7 | $ | 174.5 |
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(in millions) | 2017 | 2016 | ||||||
Revolving credit facility | $ | 25.0 | $ | 63.5 | ||||
Term Loan B | 815.0 | 825.0 | ||||||
Senior Notes due 2024 | 425.0 | 425.0 | ||||||
Capital leases | 2.7 | 3.3 | ||||||
Total debt and capital leases, including current portion | 1,267.7 | 1,316.8 | ||||||
Less current portion of capital leases | (0.7 | ) | (1.6 | ) | ||||
Less unamortized debt issuance costs (1) | (26.4 | ) | (36.5 | ) | ||||
Less hedge accounting fair value adjustment (2) | (8.4 | ) | — | |||||
Total long-term debt and capital leases | $ | 1,232.2 | $ | 1,278.7 |
(in millions) | ||||
Year ending December 31: | ||||
2018 | $ | — | ||
2019 | — | |||
2020 | — | |||
2021 | 25.0 | |||
2022 | — | |||
Thereafter | 1,240.0 | |||
$ | 1,265.0 |
Fiscal Quarter Ending | Consolidated Total Leverage Ratio Level (less than) | Actual Consolidated Total Leverage Ratio | Consolidated Interest Coverage Ratio Level (greater than) | Actual Consolidated Interest Coverage Ratio | ||||
March 31, 2017 | 5.50:1.00 | 5.20:1.00 | 2.50:1.00 | 2.71:1.00 | ||||
June 30, 2017 | 5.25:1.00 | 5.06:1.00 | 2.50:1.00 | 2.87:1.00 | ||||
September 30, 2017 | 5.00:1.00 | 4.82:1.00 | 2.75:1.00 | 3.06:1.00 | ||||
December 31, 2017 (1) | 4.75:1.00 | 4.53:1.00 | 3.00:1.00 | 3.25:1.00 |
Year | Percentage | ||
2019 | 107.125 | % | |
2020 | 104.750 | % | |
2021 | 102.375 | % | |
2022 and thereafter | 100.000 | % |
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(in millions) | 2017 | 2016 | 2015 | |||||||||
Domestic | $ | 20.6 | $ | 30.5 | $ | 121.3 | ||||||
Foreign | 98.2 | 74.3 | 75.1 | |||||||||
Total | $ | 118.8 | $ | 104.8 | $ | 196.4 |
(in millions) | 2017 | 2016 | 2015 | |||||||||
Current: | ||||||||||||
Federal and state | $ | 21.9 | $ | 15.7 | $ | 51.1 | ||||||
Foreign | 26.2 | 19.5 | 18.2 | |||||||||
Total current expense | 48.1 | 35.2 | 69.3 | |||||||||
Deferred: | ||||||||||||
Federal and state | (55.6 | ) | (15.5 | ) | (27.9 | ) | ||||||
Foreign | (7.7 | ) | 5.6 | (2.1 | ) | |||||||
Total deferred benefit | (63.3 | ) | (9.9 | ) | (30.0 | ) | ||||||
Income taxes | $ | (15.2 | ) | $ | 25.3 | $ | 39.3 |
2017 | 2016 | 2015 | |||||||
Federal income tax at statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | |||
State income (benefit) provision | (2.9 | ) | 1.5 | 1.4 | |||||
Manufacturing and research incentives | (1.7 | ) | (1.9 | ) | (1.7 | ) | |||
Taxes on foreign income | (6.6 | ) | (9.3 | ) | (9.6 | ) | |||
Repatriation of foreign income - Tax Act | 11.4 | — | — | ||||||
Change in federal income tax statutory rate - Tax Act | (38.3 | ) | — | — | |||||
Adjustments for valuation allowances | (10.6 | ) | 2.5 | (13.8 | ) | ||||
Business divestitures | — | — | 4.1 | ||||||
Out of period adjustments | — | (2.8 | ) | — | |||||
Other items | 0.9 | (0.9 | ) | 4.6 | |||||
Effective tax rate | (12.8 | )% | 24.1 | % | 20.0 | % |
(in millions) | 2017 | 2016 | ||||||
Non-current deferred tax assets (liabilities): | ||||||||
Inventories | $ | 3.5 | $ | 7.2 | ||||
Accounts receivable | 0.9 | 1.7 | ||||||
Property, plant and equipment | (2.4 | ) | (2.7 | ) | ||||
Intangible assets | (118.0 | ) | (190.8 | ) | ||||
Deferred employee benefits | 19.9 | 19.2 | ||||||
Product warranty reserves | 7.5 | 13.3 | ||||||
Product liability reserves | 2.2 | 0.9 | ||||||
Loss carryforwards | 41.3 | 43.8 | ||||||
Deferred revenue | — | 1.3 | ||||||
Other | 12.9 | 35.4 | ||||||
Non-current deferred tax liabilities | (32.2 | ) | (70.7 | ) | ||||
Less valuation allowance | (42.0 | ) | (59.9 | ) | ||||
Net non-current deferred tax liabilities | $ | (74.2 | ) | $ | (130.6 | ) |
(in millions) | 2017 | 2016 | Financial Statement Line Item | |||||||
Income taxes receivable | $ | 4.3 | $ | 2.9 | Prepaids and other current assets | |||||
Deferred tax assets | 18.1 | 7.2 | Other non-current assets | |||||||
Income taxes payable | (6.2 | ) | (2.5 | ) | Accrued expenses and other liabilities | |||||
Income taxes payable | (12.5 | ) | — | Other long-term liabilities | ||||||
Deferred tax liabilities | (92.3 | ) | (137.8 | ) | Deferred income taxes |
• | Reduction of U.S. federal corporate tax rate: The Tax Act reduces the U.S. corporate statutory tax rate to 21%, effective January 1, 2018. For the U.S. related deferred tax assets and deferred tax liabilities, the Company has recorded a net provisional deferred tax benefit of $45.5 million for the year ended December 31, 2017. While management is able to make a reasonable estimate of the impact of the reduction in U.S. corporate tax rate, it may be affected by other analyses related to the Tax Act, including, but not limited to, the calculation of deemed repatriation of deferred foreign income and the state tax effect of adjustments made to federal temporary differences. |
• | Deemed Repatriation Transition Tax: The Transition Tax is a tax on E&P of certain of the Company’s foreign subsidiaries. To determine the amount of the Transition Tax, the Company must determine, in addition to other factors, the amount of post-1986 E&P of the relevant subsidiaries, as well as the amount of non-U.S. income taxes paid on such earnings. Management was able to make a reasonable estimate of the Transition Tax and recorded a provisional Transition Tax obligation of $13.5 million as an element of our current income tax provision, which will be payable over a period of up to eight years. This provisional estimate may be impacted by a number of additional considerations, including but not limited to the issuance of final regulations, ongoing analysis of the Tax Act and gathering additional information to more precisely compute the amount of the Transition Tax. |
• | Cost recovery: While management has not yet completed all of the computations necessary or completed an inventory of the Company’s 2017 U.S. expenditures that qualify for immediate expensing, the Company has recorded a provisional benefit of approximately $0.1 million, based on management’s current intent to fully expense all qualifying expenditures. |
• | GILTI: The Tax Act creates a new requirement that certain income earned by controlled foreign corporations (“CFCs”) must be included currently in the gross income of the CFC's U.S. shareholder. Because of the complexity of the new GILTI tax rules, management is continuing to evaluate this provision of the Tax Act. Under U.S. GAAP, the Company is allowed to make an accounting policy choice of either (1) treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense, commencing in 2018 upon its effective date, when incurred (the “period cost method”) or (2) factoring such amounts into the measurement of deferred taxes (the “deferred method”). The Company’s selection of an accounting policy with respect to the new GILTI tax rules will depend, in part, on analyzing our global income to determine whether management expects to have future U.S. inclusions in taxable income related to GILTI and, if so, what the impact is expected to be. Because whether management expects to have future U.S. inclusions in taxable income related to GILTI depends on not only the Company’s current structure and estimated future results of global operations but also management’s intent and ability to modify the structure and/or the business, management is not yet able to reasonably estimate the effect of this provision of the Tax Act. Therefore, the Company has not made any deferred tax adjustments related to potential GILTI tax in the consolidated financial statements for the year ended December 31, 2017 and has not made a policy decision regarding whether to record deferred taxes on GILTI. |
• | Valuation allowances: The Company must determine whether assessments of valuation allowances are affected by various aspects of the Tax Act (e.g., GILTI inclusions, new categories of foreign tax credits). Since, as discussed above, the Company has recorded no deferred tax adjustments related to the GILTI element of the Tax Act, any corresponding determination of the need for or change in a valuation allowance has not been completed and no changes to valuation allowances as a result of the GILTI element of the Tax Act have been recorded. |
• | Capital requirements: As of December 31, 2017, approximately $120.4 million of the $128.7 million of cash and cash equivalents, including restricted cash, on the consolidated balance sheet was held by foreign entities. Management’s intent is to reinvest the earnings of foreign subsidiaries indefinitely outside the U.S., irrespective of the Tax Act. The Tax Act includes the Transition Tax provision that imposes a tax on foreign earnings whether or not such earnings are repatriated to the U.S. As a result of the Transition Tax, management is reviewing the current position on the reinvestment of the earnings of foreign subsidiaries outside of the U.S. This review may be impacted by a number of additional considerations, including but not limited to the issuance of additional regulations, ongoing analysis of the Tax Act and gathering additional information to make a more informed decision for our intent to reinvest earnings of foreign subsidiaries indefinitely outside the U.S. |
(in millions) | 2017 | 2016 | 2015 | |||||||||
Balance at beginning of year | $ | 12.5 | $ | 16.6 | $ | 16.6 | ||||||
Additions based on tax positions related to the current year | — | 0.8 | 0.2 | |||||||||
Additions for tax positions of prior years | 0.2 | 1.0 | — | |||||||||
Reductions for tax positions of prior years | (0.4 | ) | — | — | ||||||||
Reductions for equity adjustment | — | (4.3 | ) | — | ||||||||
Reductions for lapse of statute | — | (1.6 | ) | (0.2 | ) | |||||||
Balance at end of year | $ | 12.3 | $ | 12.5 | $ | 16.6 |
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(in millions) | 2017 | 2016 | 2015 | |||||||||
Gain on sale of Kysor Panel Systems (1) | $ | — | $ | — | $ | (9.9 | ) | |||||
Gain on sale of investment property | — | — | (5.4 | ) | ||||||||
Gain on acquisition of Thailand joint venture (2) | — | — | (4.9 | ) | ||||||||
Amortization of debt issuance costs | 5.4 | 4.8 | — | |||||||||
Other | 3.6 | 4.3 | (1.9 | ) | ||||||||
Other expense (income) — net | $ | 9.0 | $ | 9.1 | $ | (22.1 | ) |
|
(in millions) | 2017 | 2016 | ||||||
Foreign currency translation, net of income tax benefit of $2.8 and zero, respectively | $ | 4.4 | $ | (9.8 | ) | |||
Derivative instrument fair market value, net of income tax expense of $1.8 and zero, respectively | 3.6 | 0.8 | ||||||
Employee pension and postretirement benefit adjustments, net of income tax benefit of $6.5 and $6.3, respectively | (40.0 | ) | (34.4 | ) | ||||
$ | (32.0 | ) | $ | (43.4 | ) |
(in millions) | Foreign Currency Translation (1) | Gains and Losses on Cash Flow Hedges | Pension & Postretirement | Total | ||||||||||||
Balance at December 31, 2014 | $ | 17.3 | $ | (1.0 | ) | $ | (37.0 | ) | $ | (20.7 | ) | |||||
Other comprehensive (loss) income before reclassifications | (25.2 | ) | (6.1 | ) | 1.1 | (30.2 | ) | |||||||||
Amounts reclassified out | — | 4.8 | 1.1 | 5.9 | ||||||||||||
Tax effect | — | 0.5 | — | 0.5 | ||||||||||||
Net current period other comprehensive (loss) income | (25.2 | ) | (0.8 | ) | 2.2 | (23.8 | ) | |||||||||
Balance at December 31, 2015 | (7.9 | ) | (1.8 | ) | (34.8 | ) | (44.5 | ) | ||||||||
Other comprehensive (loss) income before reclassifications | (1.9 | ) | 2.1 | (1.5 | ) | (1.3 | ) | |||||||||
Amounts reclassified out | — | 1.5 | 2.5 | 4.0 | ||||||||||||
Tax effect | — | (1.0 | ) | (0.6 | ) | (1.6 | ) | |||||||||
Net current period other comprehensive (loss) income | (1.9 | ) | 2.6 | 0.4 | 1.1 | |||||||||||
Balance at December 31, 2016 | (9.8 | ) | 0.8 | (34.4 | ) | (43.4 | ) | |||||||||
Other comprehensive income (loss) before reclassifications | 11.4 | 9.0 | (7.8 | ) | 12.6 | |||||||||||
Amounts reclassified out | — | (4.4 | ) | 2.0 | (2.4 | ) | ||||||||||
Tax effect | 2.8 | (1.8 | ) | 0.2 | 1.2 | |||||||||||
Net current period other comprehensive income (loss) | 14.2 | 2.8 | (5.6 | ) | 11.4 | |||||||||||
Balance at December 31, 2017 | $ | 4.4 | $ | 3.6 | $ | (40.0 | ) | $ | (32.0 | ) |
(in millions) | 2017 | 2016 | 2015 | Recognized Location | ||||||||||||
Gains (losses) on cash flow hedges: | ||||||||||||||||
Foreign currency exchange contracts | $ | 3.3 | $ | — | $ | (1.4 | ) | Cost of sales | ||||||||
Commodity contracts | 1.1 | (1.5 | ) | (3.4 | ) | Cost of sales | ||||||||||
4.4 | (1.5 | ) | (4.8 | ) | Total before tax | |||||||||||
(1.6 | ) | 0.6 | 1.8 | Tax (expense) benefit | ||||||||||||
$ | 2.8 | $ | (0.9 | ) | $ | (3.0 | ) | Net of tax | ||||||||
Amortization of pension and postretirement items: | ||||||||||||||||
Actuarial losses | $ | (2.0 | ) | $ | (2.5 | ) | $ | (1.1 | ) | (a) | ||||||
(2.0 | ) | (2.5 | ) | (1.1 | ) | Total before tax | ||||||||||
0.7 | 1.0 | — | Tax benefit | |||||||||||||
$ | (1.3 | ) | $ | (1.5 | ) | $ | (1.1 | ) | Net of tax | |||||||
Total reclassifications for the period | $ | 1.5 | $ | (2.4 | ) | $ | (4.1 | ) | Net of tax |
|
Years Ended December 31, | ||||||||||||
(in millions) | 2017 | 2016 | 2015 | |||||||||
Stock-based compensation expense: | ||||||||||||
Selling, general and administrative expenses | $ | 8.1 | $ | 4.7 | $ | 2.3 | ||||||
Separation expense | 0.1 | 1.6 | — | |||||||||
Restructuring expense | 2.9 | — | — | |||||||||
Total stock-based compensation expense | $ | 11.1 | $ | 6.3 | $ | 2.3 |
Years Ended December 31, | ||||||||||||
(in millions) | 2017 | 2016 | 2015 | |||||||||
Stock-based compensation expense: | ||||||||||||
Stock options | $ | 3.0 | $ | 1.2 | $ | 0.6 | ||||||
Restricted stock awards and units | 3.6 | 3.0 | 1.3 | |||||||||
Performance share units | 4.5 | 2.1 | 0.4 | |||||||||
Total stock-based compensation expense | $ | 11.1 | $ | 6.3 | $ | 2.3 |
(in millions, except weighted average exercise price and contractual life) | Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | |||||||||
Options outstanding as of January 1, 2017 | 3.6 | $ | 15.62 | 4.5 | $ | 20.0 | |||||||
Granted | 0.3 | 18.67 | |||||||||||
Exercised | (0.6 | ) | 8.19 | ||||||||||
Forfeited | (0.1 | ) | 16.54 | ||||||||||
Canceled | (0.5 | ) | 24.34 | ||||||||||
Options outstanding as of December 31, 2017 (1) | 2.7 | $ | 15.95 | 4.9 | $ | 22.9 | |||||||
Options vested and expected to vest as of December 31, 2017 (2) | 2.7 | $ | 15.94 | 4.8 | $ | 22.5 | |||||||
Options exercisable as of December 31, 2017 | 2.2 | $ | 15.81 | 4.0 | $ | 18.8 |
Years Ended December 31, | |||||||||
2017 | 2016 | 2015 | |||||||
Expected life (years) | 6.0 | 6.0 | 6.0 | ||||||
Risk-free interest rate | 2.3 | % | 1.6 | % | 1.8 | % | |||
Expected volatility | 39.0 | % | 39.0 | % | 56.0 | % | |||
Expected dividend yield | — | % | — | % | 0.3 | % |
Years Ended December 31, | ||||||||||||
(in millions, except weighted average grant date fair value per option granted) | 2017 | 2016 | 2015 | |||||||||
Weighted average grant date fair value per option granted | $ | 7.86 | $ | 5.97 | $ | 10.40 | ||||||
Fair value of options vested | 3.0 | 2.8 | 6.8 | |||||||||
Intrinsic value of options exercised | 7.5 | 8.5 | 0.1 | |||||||||
Excess tax benefit for tax deductions related to the exercise of stock options | 1.2 | — | — | |||||||||
Cash received from option exercises, net of tax withholding | 1.9 | 12.9 | — | |||||||||
Tax benefits for stock-option compensation expense | 0.7 | 0.5 | 0.2 |
(in millions, except weighted average grant date fair value) | Restricted Stock | Weighted Average Grant Date Fair Value | |||||
Unvested as of January 1, 2017 | 0.9 | $ | 16.86 | ||||
Granted | 0.1 | 21.39 | |||||
Vested | (0.2 | ) | 18.29 | ||||
Forfeited | (0.1 | ) | 16.56 | ||||
Unvested as of December 31, 2017 | 0.7 | $ | 17.14 |
Years Ended December 31, | ||||||||||||
(in millions, except weighted average grant date fair value per award granted) | 2017 | 2016 | 2015 | |||||||||
Weighted average grant date fair value per award granted | $ | 21.39 | $ | 15.25 | $ | 21.90 | ||||||
Fair value of awards vested | 4.0 | 2.8 | — | |||||||||
Tax benefits for restricted stock compensation expense | 0.8 | 1.2 | 0.5 |
Award Date | PSUs Outstanding (in millions) | Expected Vesting Threshold | ||||
2016 Program | 0.3 | 125.0 | % | |||
2017 Program | 0.2 | 100.0 | % | |||
Total PSUs outstanding | 0.5 |
(in millions, except weighted average grant date fair value) | Performance Share Units | Weighted Average Grant Date Fair Value | |||||
Unvested as of January 1, 2017 | 0.5 | $ | 16.88 | ||||
Granted | 0.3 | 18.67 | |||||
Vested | (0.2 | ) | 20.52 | ||||
Forfeited | (0.1 | ) | 16.60 | ||||
Unvested as of December 31, 2017 | 0.5 | $ | 16.87 |
Years Ended December 31, | ||||||||||||
(in millions, except weighted average grant date fair value per award granted) | 2017 | 2016 | 2015 | |||||||||
Weighted average grant date fair value per award granted | $ | 18.70 | $ | 14.97 | $ | — | ||||||
Fair value of awards vested | 3.0 | 3.6 | 6.0 | |||||||||
Tax benefits for PSU compensation expense | 1.0 | 0.8 | 0.1 |
|
|
(in millions) | 2017 | 2016 | ||||||
Balance at the beginning of the period | $ | 36.3 | $ | 40.0 | ||||
Accruals for warranties issued | 33.3 | 22.1 | ||||||
Settlements made (in cash or in kind) | (34.4 | ) | (25.1 | ) | ||||
Currency translation impact | 0.8 | (0.7 | ) | |||||
Balance at the end of the period (1) | $ | 36.0 | $ | 36.3 |
|
(in millions) | 2017 | 2016 | ||||||
Balance at January 1 | $ | 14.4 | $ | 16.8 | ||||
Restructuring charges | 10.8 | 2.5 | ||||||
Use of reserve | (6.2 | ) | (4.9 | ) | ||||
Non-cash adjustment (1) | (2.9 | ) | — | |||||
Balance at December 31 | $ | 16.1 | $ | 14.4 |
|
Pension Plans | Postretirement Health and Other | |||||||||||||||||||||||
(in millions) | 2017 | 2016 | 2015 | 2017 | 2016 | 2015 | ||||||||||||||||||
Service cost - benefits earned during the year | $ | — | $ | 0.2 | $ | 0.4 | $ | — | $ | — | $ | — | ||||||||||||
Interest cost of projected benefit obligation | 5.4 | 8.3 | 6.5 | 0.3 | 0.4 | 0.1 | ||||||||||||||||||
Expected return on assets | (6.2 | ) | (6.2 | ) | (5.4 | ) | — | — | — | |||||||||||||||
Amortization of actuarial net loss (gain) | 2.0 | 2.5 | 1.2 | — | — | (0.1 | ) | |||||||||||||||||
Net periodic benefit cost | $ | 1.2 | $ | 4.8 | $ | 2.7 | $ | 0.3 | $ | 0.4 | $ | — | ||||||||||||
Weighted average assumptions: | ||||||||||||||||||||||||
Discount rate | 3.1 | % | 3.9 | % | 3.5 | % | 3.5 | % | 3.9 | % | 3.7 | % | ||||||||||||
Expected return on plan assets | 3.6 | % | 3.7 | % | 3.5 | % | N/A | N/A | N/A | |||||||||||||||
Rate of compensation increase | — | % | 4.0 | % | 4.0 | % | 1.5 | % | 1.5 | % | 1.5 | % |
Pension Plans | Postretirement Health and Other | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Change in Benefit Obligation | ||||||||||||||||
Benefit obligation, beginning of year | $ | 203.9 | $ | 177.2 | $ | 9.0 | $ | 3.2 | ||||||||
Service cost | — | 0.2 | — | — | ||||||||||||
Interest cost | 5.4 | 8.3 | 0.3 | 0.4 | ||||||||||||
Participant contributions | — | — | 0.6 | 0.4 | ||||||||||||
Plan combinations | — | 55.6 | — | 6.8 | ||||||||||||
Actuarial loss | 7.7 | 4.1 | 1.7 | — | ||||||||||||
Currency translation adjustment | 13.8 | (29.3 | ) | 0.1 | — | |||||||||||
Benefits paid | (14.0 | ) | (12.2 | ) | (1.6 | ) | (1.8 | ) | ||||||||
Benefit obligation, end of year | $ | 216.8 | $ | 203.9 | $ | 10.1 | $ | 9.0 | ||||||||
Change in Plan Assets | ||||||||||||||||
Fair value of plan assets, beginning of year | $ | 163.8 | $ | 147.9 | $ | — | $ | — | ||||||||
Actual return on plan assets | 9.2 | 14.1 | — | — | ||||||||||||
Employer contributions | 5.4 | 6.1 | 1.0 | 1.4 | ||||||||||||
Participant contributions | — | — | 0.6 | 0.4 | ||||||||||||
Plan combinations | — | 34.1 | — | — | ||||||||||||
Currency translation adjustment | 12.3 | (26.2 | ) | — | — | |||||||||||
Benefits paid | (14.0 | ) | (12.2 | ) | (1.6 | ) | (1.8 | ) | ||||||||
Fair value of plan assets, end of year | $ | 176.7 | $ | 163.8 | $ | — | $ | — | ||||||||
Unfunded status (1) | $ | (40.1 | ) | $ | (40.1 | ) | $ | (10.1 | ) | $ | (9.0 | ) | ||||
Weighted-Average Assumptions | ||||||||||||||||
Discount rate | 2.8 | % | 3.1 | % | 3.2 | % | 3.5 | % | ||||||||
Rate of compensation increase | — | % | — | % | 1.5 | % | 1.5 | % |
Pension Plans | Postretirement Health and Other | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Net actuarial loss | $ | (44.3 | ) | $ | (40.5 | ) | $ | (2.2 | ) | $ | (0.5 | ) | ||||
Total amount recognized | $ | (44.3 | ) | $ | (40.5 | ) | $ | (2.2 | ) | $ | (0.5 | ) |
Change in assumption: | Estimated increase (decrease) in 2018 pension cost | Estimated increase (decrease) in projected benefit obligation for the year ended December 31, 2017 | Estimated increase (decrease) in 2018 other postretirement benefit costs | Estimated increase (decrease) in other postretirement benefit obligation for the year ended December 31, 2017 | ||||||||||||
0.5% increase in discount rate | $ | (0.5 | ) | $ | (14.6 | ) | $ | — | $ | (0.3 | ) | |||||
0.5% decrease in discount rate | 0.5 | 16.0 | — | 0.3 | ||||||||||||
0.5% increase in long-term return on assets | (0.9 | ) | N/A | N/A | N/A | |||||||||||
0.5% decrease in long-term return on assets | 0.9 | N/A | N/A | N/A | ||||||||||||
1% increase in medical trend rates | N/A | N/A | 0.1 | 0.6 | ||||||||||||
1% decrease in medical trend rates | N/A | N/A | (0.1 | ) | (0.5 | ) |
2017 | 2016 | |||||
Equity securities | 17.6 | % | 20.8 | % | ||
Debt securities | 34.6 | % | 34.5 | % | ||
Other | 47.8 | % | 44.7 | % | ||
100.0 | % | 100.0 | % |
Target Allocations | Weighted Average Asset Allocations | |||||
Equity securities | 20.4 | % | 17.6 | % | ||
Debt securities | 36.2 | % | 34.6 | % | ||
Other | 43.4 | % | 47.8 | % |
December 31, 2017 | ||||||||||||||||
Assets (in millions) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | Total | ||||||||||||
Cash and cash equivalents | $ | 2.4 | $ | — | $ | — | $ | 2.4 | ||||||||
Insurance group annuity contracts | — | 74.6 | 74.6 | |||||||||||||
Common/collective trust funds — Government, corporate and other non-government debt | — | 63.2 | — | 63.2 | ||||||||||||
Common/collective trust funds — Corporate equity | — | 30.4 | — | 30.4 | ||||||||||||
Common/collective trust funds — Customized strategy | — | 6.1 | — | 6.1 | ||||||||||||
Total | $ | 2.4 | $ | 99.7 | $ | 74.6 | $ | 176.7 |
December 31, 2016 | ||||||||||||||||
Assets (in millions) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | Total | ||||||||||||
Cash and cash equivalents | $ | 1.0 | $ | — | $ | — | $ | 1.0 | ||||||||
Insurance group annuity contracts | — | — | 72.2 | 72.2 | ||||||||||||
Common/collective trust funds — Government, corporate and other non-government debt | — | 51.6 | — | 51.6 | ||||||||||||
Common/collective trust funds — Corporate equity | — | 34.1 | — | 34.1 | ||||||||||||
Common/collective trust funds — Customized strategy | — | 4.9 | — | 4.9 | ||||||||||||
Total | $ | 1.0 | $ | 90.6 | $ | 72.2 | $ | 163.8 |
Insurance Contracts Year Ended December 31, | ||||||||
(in millions) | 2017 | 2016 | ||||||
Beginning Balance | $ | 72.2 | $ | 89.9 | ||||
Actual return on assets | — | 2.5 | ||||||
Benefit payments | (4.6 | ) | (4.8 | ) | ||||
Foreign currency impact | 7.0 | (15.4 | ) | |||||
Ending Balance | $ | 74.6 | $ | 72.2 |
(in millions) | Pension Plans | Postretirement Health and Other | ||||||
2018 | $ | 10.9 | $ | 1.3 | ||||
2019 | 11.0 | 1.3 | ||||||
2020 | 11.2 | 1.2 | ||||||
2021 | 11.2 | 1.2 | ||||||
2022 | 11.2 | 1.2 | ||||||
2023-2027 | 54.7 | 3.4 |
Pension Plans | ||||||||
(in millions) | 2017 | 2016 | ||||||
Projected benefit obligation | $ | 216.8 | $ | 203.9 | ||||
Accumulated benefit obligation | 216.8 | 203.9 | ||||||
Fair value of plan assets | 176.7 | 163.8 |
|
(in millions) | |||
Year ending December 31: | |||
2018 | $ | 13.3 | |
2019 | 11.2 | ||
2020 | 7.6 | ||
2021 | 5.1 | ||
2022 | 3.4 | ||
Thereafter | 2.9 | ||
$ | 43.5 |
|
Years Ended December 31, | ||||||||||||
(in millions, except percentage data) | 2017 | 2016 | 2015 | |||||||||
Net sales: | ||||||||||||
Americas | $ | 1,166.8 | $ | 1,186.6 | $ | 1,323.7 | ||||||
EMEA | 296.5 | 287.6 | 281.6 | |||||||||
APAC | 190.2 | 190.9 | 191.1 | |||||||||
Elimination of intersegment sales | (208.1 | ) | (208.5 | ) | (226.3 | ) | ||||||
Total net sales | $ | 1,445.4 | $ | 1,456.6 | $ | 1,570.1 | ||||||
Segment Adjusted Operating EBITDA: | ||||||||||||
Americas | $ | 240.7 | $ | 233.6 | $ | 215.6 | ||||||
EMEA | 55.2 | 44.3 | 27.0 | |||||||||
APAC | 22.7 | 24.7 | 25.3 | |||||||||
Total Segment Adjusted Operating EBITDA | 318.6 | 302.6 | 267.9 | |||||||||
Corporate and unallocated | (43.2 | ) | (42.6 | ) | (38.2 | ) | ||||||
Amortization expense | (31.2 | ) | (31.2 | ) | (31.4 | ) | ||||||
Depreciation expense | (16.7 | ) | (17.3 | ) | (19.6 | ) | ||||||
Separation expense | (1.6 | ) | (6.5 | ) | (4.3 | ) | ||||||
Restructuring expense | (10.8 | ) | (2.5 | ) | (4.6 | ) | ||||||
Gain (loss) from impairment or disposal of assets — net | 4.0 | (3.3 | ) | (9.9 | ) | |||||||
Earnings from operations | 219.1 | 199.2 | 159.9 | |||||||||
Interest expense | (86.9 | ) | (85.2 | ) | (1.4 | ) | ||||||
Interest (expense) income on notes with MTW — net | — | (0.1 | ) | 15.8 | ||||||||
Loss on early extinguishment of debt | (4.4 | ) | — | — | ||||||||
Other (expense) income — net | (9.0 | ) | (9.1 | ) | 22.1 | |||||||
Earnings before income taxes | $ | 118.8 | $ | 104.8 | $ | 196.4 | ||||||
Adjusted Operating EBITDA % by segment (1) : | ||||||||||||
Americas | 20.6 | % | 19.7 | % | 16.3 | % | ||||||
EMEA | 18.6 | % | 15.4 | % | 9.6 | % | ||||||
APAC | 11.9 | % | 12.9 | % | 13.2 | % | ||||||
(1) Adjusted Operating EBITDA % in the section above is calculated by dividing the dollar amount of Adjusted Operating EBITDA by net sales for each respective segment. | ||||||||||||
Capital expenditures: | ||||||||||||
Americas | $ | 17.2 | $ | 12.4 | $ | 8.4 | ||||||
EMEA | 2.0 | 0.9 | 1.5 | |||||||||
APAC | 1.0 | 1.8 | 1.4 | |||||||||
Corporate | 0.5 | 0.9 | 1.9 | |||||||||
Total capital expenditures | $ | 20.7 | $ | 16.0 | $ | 13.2 | ||||||
Depreciation: | ||||||||||||
Americas | $ | 11.5 | $ | 12.1 | $ | 14.3 | ||||||
EMEA | 2.4 | 2.5 | 2.6 | |||||||||
APAC | 1.9 | 2.0 | 2.1 | |||||||||
Corporate | 0.9 | 0.7 | 0.6 | |||||||||
Total depreciation | $ | 16.7 | $ | 17.3 | $ | 19.6 |
(in millions) | 2017 | 2016 | ||||||
Total assets by segment: | ||||||||
Americas | $ | 1,445.6 | $ | 1,463.7 | ||||
EMEA | 112.1 | 102.6 | ||||||
APAC | 128.7 | 110.8 | ||||||
Corporate | 154.0 | 92.0 | ||||||
Total assets | $ | 1,840.4 | $ | 1,769.1 |
(in millions) | 2017 | 2016 | 2015 | |||||||||
Commercial foodservice whole goods | $ | 1,173.3 | $ | 1,191.0 | $ | 1,277.2 | ||||||
Aftermarket parts and support | 272.1 | 265.6 | 292.9 | |||||||||
Total net sales | $ | 1,445.4 | $ | 1,456.6 | $ | 1,570.1 |
(in millions) | 2017 | 2016 | 2015 | |||||||||
Net sales by geographic area (1): | ||||||||||||
United States | $ | 945.6 | $ | 945.7 | $ | 1,066.7 | ||||||
Other Americas | 95.0 | 104.3 | 106.6 | |||||||||
EMEA | 239.2 | 242.0 | 237.2 | |||||||||
APAC | 165.6 | 164.6 | 159.6 | |||||||||
Total net sales by geographic area | $ | 1,445.4 | $ | 1,456.6 | $ | 1,570.1 |
(in millions) | 2017 | 2016 | ||||||
Property, plant and equipment - net by geographic area: | ||||||||
United States | $ | 68.1 | $ | 68.1 | ||||
Other Americas | 19.5 | 17.1 | ||||||
EMEA | 11.6 | 10.8 | ||||||
APAC | 13.0 | 13.1 | ||||||
Total property, plant, equipment - net by geographic area | $ | 112.2 | $ | 109.1 |
|
2017 | ||||||||||||||||
(in millions, except per share data) | First | Second | Third | Fourth | ||||||||||||
Net sales | $ | 328.0 | $ | 371.1 | $ | 380.4 | $ | 365.9 | ||||||||
Gross profit | 123.0 | 137.2 | 143.9 | 132.8 | ||||||||||||
Net earnings | 5.0 | 30.1 | 33.1 | 65.8 | ||||||||||||
Per share data | ||||||||||||||||
Earnings per share — Basic | $ | 0.04 | $ | 0.22 | $ | 0.24 | $ | 0.47 | ||||||||
Earnings per share — Diluted | $ | 0.04 | $ | 0.21 | $ | 0.24 | $ | 0.47 |
2016 | ||||||||||||||||
(in millions, except per share data) | First | Second | Third | Fourth | ||||||||||||
Net sales | $ | 325.5 | $ | 368.4 | $ | 384.0 | $ | 378.7 | ||||||||
Gross profit | 117.6 | 134.7 | 142.0 | 138.5 | ||||||||||||
Net earnings | 18.1 | 15.1 | 24.9 | 21.4 | ||||||||||||
Per share data (1) | ||||||||||||||||
Earnings per share — Basic | $ | 0.13 | $ | 0.11 | $ | 0.18 | $ | 0.15 | ||||||||
Earnings per share — Diluted | $ | 0.13 | $ | 0.11 | $ | 0.18 | $ | 0.15 |
|
|
(in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Consolidating Adjustments | Consolidated | |||||||||||||||
Net sales | $ | — | $ | 1,070.0 | $ | 782.2 | $ | (395.6 | ) | $ | 1,456.6 | |||||||||
Cost of sales | 3.4 | 775.9 | 540.1 | (395.6 | ) | 923.8 | ||||||||||||||
Gross profit | (3.4 | ) | 294.1 | 242.1 | — | 532.8 | ||||||||||||||
Selling, general and administrative expenses | 35.5 | 152.9 | 101.7 | — | 290.1 | |||||||||||||||
Amortization expense | — | 28.4 | 2.8 | — | 31.2 | |||||||||||||||
Separation expense | 6.3 | — | 0.2 | — | 6.5 | |||||||||||||||
Restructuring expense | — | 1.6 | 0.9 | — | 2.5 | |||||||||||||||
Loss from impairment or disposal of assets — net | — | 2.9 | 0.4 | — | 3.3 | |||||||||||||||
(Loss) earnings from operations | (45.2 | ) | 108.3 | 136.1 | — | 199.2 | ||||||||||||||
Interest expense | 82.2 | 1.2 | 1.8 | — | 85.2 | |||||||||||||||
Interest expense on notes with MTW — net | — | — | 0.1 | — | 0.1 | |||||||||||||||
Other (income) expense — net | (5.6 | ) | 19.6 | (4.9 | ) | — | 9.1 | |||||||||||||
Equity in earnings (loss) of subsidiaries | 200.5 | 114.0 | — | (314.5 | ) | — | ||||||||||||||
Earnings (loss) before income taxes | 78.7 | 201.5 | 139.1 | (314.5 | ) | 104.8 | ||||||||||||||
Income taxes | (0.8 | ) | 1.0 | 25.1 | — | 25.3 | ||||||||||||||
Net earnings (loss) | $ | 79.5 | $ | 200.5 | $ | 114.0 | $ | (314.5 | ) | $ | 79.5 | |||||||||
Total other comprehensive income (loss), net of tax | 1.1 | 3.0 | 7.3 | (10.3 | ) | 1.1 | ||||||||||||||
Comprehensive income (loss) | $ | 80.6 | $ | 203.5 | $ | 121.3 | $ | (324.8 | ) | $ | 80.6 |
(in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Consolidating Adjustments | Consolidated | |||||||||||||||
Net sales | $ | — | $ | 1,109.8 | $ | 809.9 | $ | (349.6 | ) | $ | 1,570.1 | |||||||||
Cost of sales | 0.1 | 803.6 | 614.3 | (349.6 | ) | 1,068.4 | ||||||||||||||
Gross (loss) profit | (0.1 | ) | 306.2 | 195.6 | — | 501.7 | ||||||||||||||
Selling, general and administrative expenses | 32.2 | 144.6 | 114.8 | — | 291.6 | |||||||||||||||
Amortization expense | — | 28.5 | 2.9 | — | 31.4 | |||||||||||||||
Separation expense (income) | 4.4 | 0.1 | (0.2 | ) | — | 4.3 | ||||||||||||||
Restructuring expense | — | 1.9 | 2.7 | — | 4.6 | |||||||||||||||
Loss from impairment or disposal of assets — net | — | 8.4 | 1.5 | — | 9.9 | |||||||||||||||
(Loss) earnings from operations | (36.7 | ) | 122.7 | 73.9 | — | 159.9 | ||||||||||||||
Interest expense | — | 1.2 | 0.2 | — | 1.4 | |||||||||||||||
Interest income on notes with MTW — net | — | (14.9 | ) | (0.9 | ) | — | (15.8 | ) | ||||||||||||
Other (income) expense — net | (78.6 | ) | 77.8 | (21.3 | ) | — | (22.1 | ) | ||||||||||||
Equity in earnings (loss) of subsidiaries | 123.2 | 77.9 | — | (201.1 | ) | — | ||||||||||||||
Earnings (loss) before income taxes | 165.1 | 136.5 | 95.9 | (201.1 | ) | 196.4 | ||||||||||||||
Income taxes | 8.0 | 13.3 | 18.0 | — | 39.3 | |||||||||||||||
Net earnings (loss) | $ | 157.1 | $ | 123.2 | $ | 77.9 | $ | (201.1 | ) | $ | 157.1 | |||||||||
Total other comprehensive (loss) income, net of tax | (23.8 | ) | (27.7 | ) | (26.9 | ) | 54.6 | (23.8 | ) | |||||||||||
Comprehensive income (loss) | $ | 133.3 | $ | 95.5 | $ | 51.0 | $ | (146.5 | ) | $ | 133.3 |
(in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Consolidating Adjustments | Consolidated | |||||||||||||||
Assets | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 8.8 | $ | — | $ | 120.4 | $ | (0.8 | ) | $ | 128.4 | |||||||||
Restricted cash | — | — | 0.3 | — | 0.3 | |||||||||||||||
Accounts receivable — net | — | — | 84.7 | (1.0 | ) | 83.7 | ||||||||||||||
Inventories — net | — | 69.8 | 82.5 | — | 152.3 | |||||||||||||||
Prepaids and other current assets | 5.3 | 5.9 | 7.8 | — | 19.0 | |||||||||||||||
Total current assets | 14.1 | 75.7 | 295.7 | (1.8 | ) | 383.7 | ||||||||||||||
Property, plant and equipment — net | 0.5 | 68.7 | 43.0 | — | 112.2 | |||||||||||||||
Goodwill | — | 832.4 | 13.7 | — | 846.1 | |||||||||||||||
Other intangible assets — net | — | 396.3 | 65.1 | — | 461.4 | |||||||||||||||
Intercompany long-term note receivable | — | 20.0 | — | (20.0 | ) | — | ||||||||||||||
Due from affiliates | — | 3,239.8 | — | (3,239.8 | ) | — | ||||||||||||||
Investment in subsidiaries | 4,015.6 | — | — | (4,015.6 | ) | — | ||||||||||||||
Other non-current assets | 10.8 | 5.2 | 28.7 | (7.7 | ) | 37.0 | ||||||||||||||
Total assets | $ | 4,041.0 | $ | 4,638.1 | $ | 446.2 | $ | (7,284.9 | ) | $ | 1,840.4 | |||||||||
Liabilities and equity | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Accounts payable | $ | 0.2 | $ | 58.2 | $ | 47.0 | $ | (1.8 | ) | $ | 103.6 | |||||||||
Accrued expenses and other liabilities | 19.1 | 86.1 | 56.5 | — | 161.7 | |||||||||||||||
Current portion of capital leases | — | 0.5 | 0.2 | — | 0.7 | |||||||||||||||
Product warranties | — | 16.2 | 7.9 | — | 24.1 | |||||||||||||||
Total current liabilities | 19.3 | 161.0 | 111.6 | (1.8 | ) | 290.1 | ||||||||||||||
Long-term debt and capital leases | 1,230.2 | 1.2 | 0.8 | — | 1,232.2 | |||||||||||||||
Deferred income taxes | 74.7 | — | 17.6 | — | 92.3 | |||||||||||||||
Pension and postretirement health obligations | 51.3 | 4.7 | — | (7.7 | ) | 48.3 | ||||||||||||||
Intercompany long-term note payable | 15.7 | — | 4.3 | (20.0 | ) | — | ||||||||||||||
Due to affiliates | 2,501.4 | — | 738.4 | (3,239.8 | ) | — | ||||||||||||||
Investment in subsidiaries | — | 430.8 | — | (430.8 | ) | — | ||||||||||||||
Other long-term liabilities | 38.0 | 24.8 | 4.3 | — | 67.1 | |||||||||||||||
Total non-current liabilities | 3,911.3 | 461.5 | 765.4 | (3,698.3 | ) | 1,439.9 | ||||||||||||||
Total equity (deficit): | ||||||||||||||||||||
Total equity (deficit) | 110.4 | 4,015.6 | (430.8 | ) | (3,584.8 | ) | 110.4 | |||||||||||||
Total liabilities and equity | $ | 4,041.0 | $ | 4,638.1 | $ | 446.2 | $ | (7,284.9 | ) | $ | 1,840.4 |
(in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Consolidating Adjustments | Consolidated | |||||||||||||||
Assets | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 0.4 | $ | 2.3 | $ | 51.1 | $ | — | $ | 53.8 | ||||||||||
Restricted cash | — | — | 6.4 | — | 6.4 | |||||||||||||||
Accounts receivable — net | 0.5 | — | 86.1 | (4.9 | ) | 81.7 | ||||||||||||||
Inventories — net | — | 74.3 | 71.3 | — | 145.6 | |||||||||||||||
Prepaids and other current assets | 0.9 | 4.5 | 8.5 | — | 13.9 | |||||||||||||||
Current assets held for sale | — | 2.3 | 4.5 | — | 6.8 | |||||||||||||||
Total current assets | 1.8 | 83.4 | 227.9 | (4.9 | ) | 308.2 | ||||||||||||||
Property, plant and equipment — net | 1.2 | 67.9 | 40.0 | — | 109.1 | |||||||||||||||
Goodwill | — | 832.4 | 12.9 | — | 845.3 | |||||||||||||||
Other intangible assets — net | — | 423.5 | 60.9 | — | 484.4 | |||||||||||||||
Intercompany long-term note receivable | — | 20.0 | — | (20.0 | ) | — | ||||||||||||||
Due from affiliates | — | 3,085.8 | — | (3,085.8 | ) | — | ||||||||||||||
Investment in subsidiaries | 3,780.3 | — | — | (3,780.3 | ) | — | ||||||||||||||
Other non-current assets | 2.7 | 5.1 | 19.7 | (5.4 | ) | 22.1 | ||||||||||||||
Total assets | $ | 3,786.0 | $ | 4,518.1 | $ | 361.4 | $ | (6,896.4 | ) | $ | 1,769.1 | |||||||||
Liabilities and equity | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Accounts payable | $ | 0.1 | $ | 64.6 | $ | 48.6 | $ | (4.9 | ) | $ | 108.4 | |||||||||
Accrued expenses and other liabilities | 14.1 | 97.5 | 62.9 | — | 174.5 | |||||||||||||||
Current portion of capital leases | — | 0.5 | 1.1 | — | 1.6 | |||||||||||||||
Product warranties | — | 18.4 | 9.5 | — | 27.9 | |||||||||||||||
Current liabilities held for sale | — | — | 0.7 | — | 0.7 | |||||||||||||||
Total current liabilities | 14.2 | 181.0 | 122.8 | (4.9 | ) | 313.1 | ||||||||||||||
Long-term debt and capital leases | 1,277.0 | 1.7 | — | — | 1,278.7 | |||||||||||||||
Deferred income taxes | 120.5 | — | 17.3 | — | 137.8 | |||||||||||||||
Pension and postretirement health obligations | 47.9 | 4.9 | — | (5.4 | ) | 47.4 | ||||||||||||||
Intercompany long-term note payable | 15.7 | — | 4.3 | (20.0 | ) | — | ||||||||||||||
Due to affiliates | 2,344.8 | — | 741.0 | (3,085.8 | ) | — | ||||||||||||||
Investment in subsidiaries | — | 524.6 | — | (524.6 | ) | — | ||||||||||||||
Other long-term liabilities | 9.4 | 25.6 | 0.6 | — | 35.6 | |||||||||||||||
Total non-current liabilities | 3,815.3 | 556.8 | 763.2 | (3,635.8 | ) | 1,499.5 | ||||||||||||||
Total (deficit) equity: | ||||||||||||||||||||
Total (deficit) equity | (43.5 | ) | 3,780.3 | (524.6 | ) | (3,255.7 | ) | (43.5 | ) | |||||||||||
Total liabilities and equity | $ | 3,786.0 | $ | 4,518.1 | $ | 361.4 | $ | (6,896.4 | ) | $ | 1,769.1 |
(in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Consolidating Adjustments | Consolidated | |||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||
Net cash (used for) provided by operating activities | $ | (96.8 | ) | $ | 160.1 | $ | 75.3 | $ | (0.8 | ) | $ | 137.8 | ||||||||
Cash flows from investing activities | ||||||||||||||||||||
Capital expenditures | (0.5 | ) | (12.5 | ) | (7.7 | ) | — | (20.7 | ) | |||||||||||
Proceeds from sale of property, plant and equipment | — | 6.0 | 6.3 | — | 12.3 | |||||||||||||||
Changes in restricted cash | — | — | 6.2 | — | 6.2 | |||||||||||||||
Acquisition of intangible assets | — | (1.2 | ) | — | — | (1.2 | ) | |||||||||||||
Intercompany investment | — | (154.2 | ) | (2.5 | ) | 156.7 | — | |||||||||||||
Net cash provided by (used for) investing activities | (0.5 | ) | (161.9 | ) | 2.3 | 156.7 | (3.4 | ) | ||||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Proceeds from long-term debt and capital leases | 155.0 | — | — | — | 155.0 | |||||||||||||||
Repayments on long-term debt and capital leases | (203.4 | ) | (0.5 | ) | (0.2 | ) | — | (204.1 | ) | |||||||||||
Proceeds from short-term borrowings | — | — | 4.0 | — | 4.0 | |||||||||||||||
Repayment of short-term borrowings | — | — | (4.0 | ) | — | (4.0 | ) | |||||||||||||
Debt issuance costs | (2.0 | ) | — | — | — | (2.0 | ) | |||||||||||||
Exercises of stock options | 4.8 | — | — | — | 4.8 | |||||||||||||||
Payments on tax withholdings for equity awards | (5.4 | ) | — | — | — | (5.4 | ) | |||||||||||||
Intercompany financing | 156.7 | — | (156.7 | ) | — | |||||||||||||||
Net cash (used for) provided by financing activities | 105.7 | (0.5 | ) | (0.2 | ) | (156.7 | ) | (51.7 | ) | |||||||||||
Effect of exchange rate changes on cash | — | — | (8.1 | ) | — | (8.1 | ) | |||||||||||||
Net increase in cash and cash equivalents | 8.4 | (2.3 | ) | 69.3 | (0.8 | ) | 74.6 | |||||||||||||
Balance at beginning of period | 0.4 | 2.3 | 51.1 | — | 53.8 | |||||||||||||||
Balance at end of period | $ | 8.8 | $ | — | $ | 120.4 | $ | (0.8 | ) | $ | 128.4 |
(in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Consolidating Adjustments | Consolidated | |||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||
Net cash (used for) provided by operating activities | $ | (98.9 | ) | $ | 111.5 | $ | 113.2 | $ | — | $ | 125.8 | |||||||||
Cash flows from investing activities | ||||||||||||||||||||
Capital expenditures | (1.0 | ) | (8.0 | ) | (7.0 | ) | — | (16.0 | ) | |||||||||||
Changes in restricted cash | — | — | (6.0 | ) | — | (6.0 | ) | |||||||||||||
Proceeds from sale of property, plant and equipment | — | — | 0.5 | 0.5 | ||||||||||||||||
Proceeds from dispositions | — | — | 1.1 | — | 1.1 | |||||||||||||||
Intercompany investment | — | (104.4 | ) | (79.4 | ) | 183.8 | — | |||||||||||||
Net cash provided by (used for) investing activities | (1.0 | ) | (112.4 | ) | (90.8 | ) | 183.8 | (20.4 | ) | |||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Proceeds from long-term debt and capital leases | 1,499.5 | 0.2 | 1.4 | — | 1,501.1 | |||||||||||||||
Repayments on long-term debt and capital leases | (186.0 | ) | (0.5 | ) | (0.3 | ) | — | (186.8 | ) | |||||||||||
Debt issuance costs | (41.3 | ) | — | — | — | (41.3 | ) | |||||||||||||
Dividend paid to MTW | (1,362.0 | ) | — | — | — | (1,362.0 | ) | |||||||||||||
Net transactions with MTW | (6.1 | ) | — | — | — | (6.1 | ) | |||||||||||||
Exercises of stock options | 16.2 | — | — | — | 16.2 | |||||||||||||||
Payments on tax withholdings for equity awards | (3.8 | ) | — | — | — | (3.8 | ) | |||||||||||||
Intercompany financing | 183.8 | — | — | (183.8 | ) | — | ||||||||||||||
Net cash (used for) provided by financing activities | 100.3 | (0.3 | ) | 1.1 | (183.8 | ) | (82.7 | ) | ||||||||||||
Effect of exchange rate changes on cash | — | — | (0.9 | ) | — | (0.9 | ) | |||||||||||||
Net increase in cash and cash equivalents | 0.4 | (1.2 | ) | 22.6 | — | 21.8 | ||||||||||||||
Balance at beginning of period | — | 3.5 | 28.5 | — | 32.0 | |||||||||||||||
Balance at end of period | $ | 0.4 | $ | 2.3 | $ | 51.1 | $ | — | $ | 53.8 |
(in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Consolidating Adjustments | Consolidated | |||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||
Net cash provided by operating activities | $ | 376.9 | $ | (137.6 | ) | $ | (96.3 | ) | $ | — | $ | 143.0 | ||||||||
Cash flows from investing activities | ||||||||||||||||||||
Capital expenditures | (0.8 | ) | (6.5 | ) | (5.9 | ) | — | (13.2 | ) | |||||||||||
Changes in restricted cash | — | — | (0.6 | ) | — | (0.6 | ) | |||||||||||||
Business acquisitions, net of cash acquired | — | — | (5.3 | ) | — | (5.3 | ) | |||||||||||||
Proceeds from dispositions | — | 78.2 | — | — | 78.2 | |||||||||||||||
Intercompany investment | (193.2 | ) | — | — | 193.2 | — | ||||||||||||||
Net cash used for investing activities | (194.0 | ) | 71.7 | (11.8 | ) | 193.2 | 59.1 | |||||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Proceeds from long-term debt and capital leases | — | 0.5 | — | — | 0.5 | |||||||||||||||
Repayments on long-term debt and capital leases | — | (0.7 | ) | — | — | (0.7 | ) | |||||||||||||
Net transactions with MTW | (182.9 | ) | — | — | — | (182.9 | ) | |||||||||||||
Intercompany financing | — | 66.9 | 126.3 | (193.2 | ) | — | ||||||||||||||
Net cash used for financing activities | (182.9 | ) | 66.7 | 126.3 | (193.2 | ) | (183.1 | ) | ||||||||||||
Effect of exchange rate changes on cash | — | — | (3.5 | ) | — | (3.5 | ) | |||||||||||||
Net increase in cash and cash equivalents | — | 0.8 | 14.7 | — | 15.5 | |||||||||||||||
Balance at beginning of period | — | 2.7 | 13.8 | — | 16.5 | |||||||||||||||
Balance at end of period | $ | — | $ | 3.5 | $ | 28.5 | $ | — | $ | 32.0 |
|
|
(in millions) | Balance at beginning of period | Charged to costs and expenses | Utilization of reserve | Other (1) | Balance at end of period | ||||||||||||
Year End December 31, 2015 | |||||||||||||||||
Allowance for doubtful accounts | $ | 3.9 | 2.5 | (2.2 | ) | (0.2 | ) | $ | 4.0 | ||||||||
Deferred tax valuation allowance | $ | 113.1 | (0.5 | ) | (28.2 | ) | (4.3 | ) | $ | 80.1 | |||||||
Year End December 31, 2016 | |||||||||||||||||
Allowance for doubtful accounts | $ | 4.0 | 1.7 | (0.3 | ) | (0.1 | ) | $ | 5.3 | ||||||||
Deferred tax valuation allowance | $ | 80.1 | 2.7 | (18.2 | ) | (4.7 | ) | $ | 59.9 | ||||||||
Year End December 31, 2017 | |||||||||||||||||
Allowance for doubtful accounts | $ | 5.3 | (0.9 | ) | (0.7 | ) | 0.3 | $ | 4.0 | ||||||||
Deferred tax valuation allowance | $ | 59.9 | 4.8 | (18.9 | ) | (3.8 | ) | $ | 42.0 |
|
Years | |
Building and improvements | 2 - 40 |
Machinery, equipment and tooling | 2 - 20 |
Furniture and fixtures | 3 - 15 |
Computer hardware and software | 2 - 7 |
Useful lives | |
Patents | 10-20 years |
Engineering drawings | 15 years |
Customer relationships | 10-20 years |
• | Discount Rate - The discount rate assumptions are based on the interest rate of non-callable high-quality corporate bonds, with appropriate consideration of our pension plans’ participants’ demographics and benefit payment terms. |
• | Expected Return on Plan Assets - The expected return on plan assets assumptions are based on our expectation of the long-term average rate of return on assets in the pension funds, which is reflective of the current and projected asset mix of the funds and considers the historical returns earned on the funds. |
• | Retirement and Mortality Rates - The retirement and mortality rate assumptions are based primarily on actual plan experience and mortality tables. |
• | Health Care Cost Trend Rates - The health care cost trend rate assumptions are developed based on historical cost data, near-term outlook and an assessment of likely long-term trends. |
|
Years | |
Building and improvements | 2 - 40 |
Machinery, equipment and tooling | 2 - 20 |
Furniture and fixtures | 3 - 15 |
Computer hardware and software | 2 - 7 |
Useful lives | |
Patents | 10-20 years |
Engineering drawings | 15 years |
Customer relationships | 10-20 years |
|
Fair Value as of December 31, 2017 | ||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Current assets: | ||||||||||||||||
Foreign currency exchange contracts | $ | — | $ | 1.1 | $ | — | $ | 1.1 | ||||||||
Commodity contracts | — | 1.7 | — | 1.7 | ||||||||||||
Interest rate swap contracts | — | 1.7 | — | 1.7 | ||||||||||||
Total current assets at fair value | — | 4.5 | — | 4.5 | ||||||||||||
Non-current assets: | ||||||||||||||||
Commodity contracts | — | 0.6 | — | 0.6 | ||||||||||||
Interest rate swap contracts | — | 2.3 | — | 2.3 | ||||||||||||
Total non-current assets at fair value | — | 2.9 | — | 2.9 | ||||||||||||
Total assets at fair value | $ | — | $ | 7.4 | $ | — | $ | 7.4 | ||||||||
Current liabilities: | ||||||||||||||||
Foreign currency exchange contracts | $ | — | $ | 1.1 | $ | — | $ | 1.1 | ||||||||
Commodity contracts | — | 0.1 | — | 0.1 | ||||||||||||
Total current liabilities at fair value | — | 1.2 | — | 1.2 | ||||||||||||
Non-current liabilities: | ||||||||||||||||
Interest rate swap contracts | — | 17.7 | — | 17.7 | ||||||||||||
Total non-current liabilities at fair value | — | 17.7 | — | 17.7 | ||||||||||||
Total liabilities at fair value | $ | — | $ | 18.9 | $ | — | $ | 18.9 |
Fair Value as of December 31, 2016 | ||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Current assets: | ||||||||||||||||
Foreign currency exchange contracts | $ | — | $ | 0.6 | $ | — | $ | 0.6 | ||||||||
Commodity contracts | — | 0.9 | — | 0.9 | ||||||||||||
Total current assets at fair value | — | 1.5 | — | 1.5 | ||||||||||||
Non-current assets: | ||||||||||||||||
Commodity contracts | — | 0.2 | — | 0.2 | ||||||||||||
Total non-current assets at fair value | — | 0.2 | — | 0.2 | ||||||||||||
Total assets at fair value | $ | — | $ | 1.7 | $ | — | $ | 1.7 | ||||||||
Current liabilities: | ||||||||||||||||
Foreign currency exchange contracts | $ | — | $ | 1.0 | $ | — | $ | 1.0 | ||||||||
Commodity contracts | — | 0.1 | — | 0.1 | ||||||||||||
Total current liabilities at fair value | — | 1.1 | — | 1.1 | ||||||||||||
Total liabilities at fair value | $ | — | $ | 1.1 | $ | — | $ | 1.1 |
|
Units Hedged | |||||||||||||
Commodity | 2017 | 2016 | 2015 | Unit | Type | ||||||||
Aluminum | — | 28 | — | MT | Cash flow | ||||||||
Steel | — | 340 | — | Short tons | Cash flow |
Units Hedged | |||||||||||||
Currency | 2017 | 2016 | 2015 | Recognized Location | Purpose | ||||||||
Canadian Dollar | — | — | 1,117,850 | Other expense (income) — net | Accounts payable and receivable settlement | ||||||||
European Euro | 69,300,000 | 16,000,000 | — | Other expense (income) — net | Accounts payable and receivable settlement | ||||||||
Swiss Franc | 4,800,000 | 3,150,000 | — | Other expense (income) — net | Accounts payable and receivable settlement | ||||||||
British Pound | 14,912,019 | 8,192,692 | — | Other expense (income) — net | Accounts payable and receivable settlement | ||||||||
Singapore Dollar | 28,127,000 | — | — | Other expense (income) — net | Accounts payable and receivable settlement |
Derivatives NOT designated as hedging instruments (in millions) | Amount of gain (loss) recognized in income on derivative | Location of gain (loss) recognized in income on derivative | ||||||||||||
Year Ended | ||||||||||||||
2017 | 2016 | 2015 | ||||||||||||
Foreign currency exchange contracts | $ | (6.5 | ) | $ | (0.2 | ) | $ | 0.1 | Other expense (income) — net | |||||
Commodity contracts — short-term | — | 0.8 | (0.7 | ) | Other expense (income) — net | |||||||||
Commodity contracts — long-term | — | — | (0.1 | ) | Other expense (income) — net | |||||||||
Total | $ | (6.5 | ) | $ | 0.6 | $ | (0.7 | ) |
Derivatives in cash flow hedging relationships (in millions) | Pretax gain (loss) recognized in AOCI (effective portion) | Location of gain (loss) reclassified from AOCI into income (effective portion) | Pretax gain (loss) reclassified from AOCI into income (effective portion) | |||||||||||||||||||||||
2017 | 2016 | 2015 | 2017 | 2016 | 2015 | |||||||||||||||||||||
Foreign currency exchange contracts | $ | 3.8 | $ | (0.1 | ) | $ | (0.8 | ) | Cost of sales | $ | 3.3 | $ | — | $ | (1.4 | ) | ||||||||||
Commodity contracts | 2.4 | 2.2 | (5.3 | ) | Cost of sales | 1.1 | (1.5 | ) | (3.4 | ) | ||||||||||||||||
Interest rate swap contracts | 2.8 | — | — | Interest expense | — | — | — | |||||||||||||||||||
Total | $ | 9.0 | $ | 2.1 | $ | (6.1 | ) | $ | 4.4 | $ | (1.5 | ) | $ | (4.8 | ) |
Derivatives in cash flow hedging relationships (in millions) | Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | Location of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | ||||||||||||
2017 | 2016 | 2015 | ||||||||||||
Commodity contracts | $ | 0.2 | $ | — | $ | 0.1 | Cost of sales | |||||||
Total | $ | 0.2 | $ | — | $ | 0.1 |
Derivatives in net investments hedging relationships (in millions) | Pretax gain (loss) recognized in AOCI (effective portion) | Location of gain (loss) reclassified from AOCI into income (effective portion) | Amount of gain (loss) reclassified from AOCI into income (effective portion) | |||||||||||||||||||||||
2017 | 2016 | 2015 | 2017 | 2016 | 2015 | |||||||||||||||||||||
Interest rate swap contract | $ | (7.5 | ) | $ | — | $ | — | Selling, general and administrative expenses | $ | — | $ | — | $ | — | ||||||||||||
Total | $ | (7.5 | ) | $ | — | $ | — | $ | — | $ | — | $ | — |
Derivatives in fair value hedging relationships (in millions) | Gain/(Loss) on Swap | Income Statement Classification | Gain/(Loss) on Borrowings | |||||||||||||||||||||||
2017 | 2016 | 2015 | 2017 | 2016 | 2015 | |||||||||||||||||||||
Interest rate swap contract | $ | (9.0 | ) | $ | — | $ | — | Interest Expense | $ | 8.7 | $ | — | $ | — | ||||||||||||
Total | $ | (9.0 | ) | $ | — | $ | — | $ | 8.7 | $ | — | $ | — |
Asset Derivatives | ||||||||||
(in millions) | Balance Sheet Location | Fair Value | ||||||||
2017 | 2016 | |||||||||
Derivatives designated as hedging instruments: | ||||||||||
Foreign currency exchange contracts | Prepaids and other current assets | $ | 1.1 | $ | 0.6 | |||||
Commodity contracts | Prepaids and other current assets | 1.7 | 0.9 | |||||||
Interest rate swap contracts | Prepaids and other current assets | 1.7 | — | |||||||
Commodity contracts | Other non-current assets | 0.6 | 0.2 | |||||||
Interest rate swap contracts | Other non-current assets | 2.3 | — | |||||||
Total derivatives designated as hedging instruments | $ | 7.4 | $ | 1.7 | ||||||
Total asset derivatives | $ | 7.4 | $ | 1.7 |
Liability Derivatives | ||||||||||
(in millions) | Balance Sheet Location | Fair Value | ||||||||
2017 | 2016 | |||||||||
Derivatives designated as hedging instruments: | ||||||||||
Foreign currency exchange contracts | Accrued expenses and other liabilities | $ | 0.6 | $ | 0.8 | |||||
Commodity contracts | Accrued expenses and other liabilities | 0.1 | 0.1 | |||||||
Interest rate swap contracts | Other long-term liabilities | 17.7 | — | |||||||
Total derivatives designated as hedging instruments | $ | 18.4 | $ | 0.9 | ||||||
Derivatives NOT designated as hedging instruments: | ||||||||||
Foreign currency exchange contracts | Accrued expenses and other liabilities | $ | 0.5 | $ | 0.2 | |||||
Total derivatives NOT designated as hedging instruments | $ | 0.5 | $ | 0.2 | ||||||
Total liability derivatives | $ | 18.9 | $ | 1.1 |
Units Hedged | |||||||||||
Commodity | 2017 | 2016 | 2015 | Unit | |||||||
Aluminum | 1,620 | 1,663 | 1,215 | MT | |||||||
Copper | 667 | 746 | 472 | MT | |||||||
Natural gas | — | 56,416 | 49,396 | MMBtu | |||||||
Steel | 7,713 | 8,663 | 11,073 | Short tons |
Units Hedged | |||||||||
Currency | 2017 | 2016 | 2015 | ||||||
Canadian Dollar | 18,080,000 | 26,130,000 | 587,556 | ||||||
European Euro | 8,545,000 | 11,261,848 | 231,810 | ||||||
British Pound | 7,807,744 | 4,191,763 | 113,115 | ||||||
Mexican Peso | 126,400,000 | 148,200,000 | 28,504,800 | ||||||
Thailand Baht | — | 23,231,639 | — | ||||||
Singapore Dollar | 1,765,000 | 4,375,000 | — |
|
(in millions) | 2017 | 2016 | ||||||
Inventories — gross: | ||||||||
Raw materials | $ | 73.9 | $ | 68.2 | ||||
Work-in-process | 18.9 | 18.3 | ||||||
Finished goods | 86.9 | 85.1 | ||||||
Total inventories — gross | 179.7 | 171.6 | ||||||
Excess and obsolete inventory reserve | (23.5 | ) | (22.5 | ) | ||||
Net inventories at FIFO cost | 156.2 | 149.1 | ||||||
Excess of FIFO costs over LIFO value | (3.9 | ) | (3.5 | ) | ||||
Inventories — net | $ | 152.3 | $ | 145.6 |
|
(in millions) | 2017 | 2016 | ||||||
Land | $ | 9.5 | $ | 7.3 | ||||
Building and improvements | 88.9 | 91.3 | ||||||
Machinery, equipment and tooling | 227.3 | 215.1 | ||||||
Furniture and fixtures | 6.0 | 5.8 | ||||||
Computer hardware and software | 55.1 | 52.9 | ||||||
Construction in progress | 15.7 | 11.2 | ||||||
Total cost | 402.5 | 383.6 | ||||||
Less accumulated depreciation | (290.3 | ) | (274.5 | ) | ||||
Property, plant and equipment — net | $ | 112.2 | $ | 109.1 |
|
(in millions) | Americas | EMEA | APAC | Total | ||||||||||||
Gross balance as of December 31, 2015 | $ | 1,144.8 | $ | 208.3 | $ | 8.4 | $ | 1,361.5 | ||||||||
Accumulated asset impairments | (312.2 | ) | (203.5 | ) | — | (515.7 | ) | |||||||||
Net balance as of December 31, 2015 | $ | 832.6 | $ | 4.8 | $ | 8.4 | $ | 845.8 | ||||||||
Foreign currency impact | $ | — | $ | (0.1 | ) | $ | (0.4 | ) | $ | (0.5 | ) | |||||
Gross balance as of December 31, 2016 | 1,144.8 | 208.2 | 8.0 | 1,361.0 | ||||||||||||
Accumulated asset impairments | (312.2 | ) | (203.5 | ) | — | (515.7 | ) | |||||||||
Net balance as of December 31, 2016 | $ | 832.6 | $ | 4.7 | $ | 8.0 | $ | 845.3 | ||||||||
Foreign currency impact | $ | — | $ | 0.2 | $ | 0.6 | $ | 0.8 | ||||||||
Gross balance as of December 31, 2017 | 1,144.8 | 208.4 | 8.6 | 1,361.8 | ||||||||||||
Accumulated asset impairments | (312.2 | ) | (203.5 | ) | — | (515.7 | ) | |||||||||
Net balance as of December 31, 2017 | $ | 832.6 | $ | 4.9 | $ | 8.6 | $ | 846.1 |
2017 | 2016 | |||||||||||||||||||||||
(in millions) | Gross Carrying Amount | Accumulated Amortization Amount | Net Book Value | Gross Carrying Amount | Accumulated Amortization Amount | Net Book Value | ||||||||||||||||||
Trademarks and tradenames | $ | 177.5 | $ | — | $ | 177.5 | $ | 172.4 | $ | — | $ | 172.4 | ||||||||||||
Customer relationships | 415.3 | (192.3 | ) | 223.0 | 415.2 | (171.4 | ) | 243.8 | ||||||||||||||||
Patents | 2.8 | (1.7 | ) | 1.1 | 1.6 | (1.6 | ) | — | ||||||||||||||||
Other intangibles | 144.9 | (85.1 | ) | 59.8 | 140.7 | (72.5 | ) | 68.2 | ||||||||||||||||
Total | $ | 740.5 | $ | (279.1 | ) | $ | 461.4 | $ | 729.9 | $ | (245.5 | ) | $ | 484.4 |
(in millions) | ||||
Year ending December 31: | ||||
2018 | $ | 33.7 | ||
2019 | 33.4 | |||
2020 | 33.2 | |||
2021 | 28.8 | |||
2022 | 26.7 | |||
Thereafter | 128.1 | |||
$ | 283.9 |
|
(in millions) | 2017 | 2016 | ||||||
Accounts payable: | ||||||||
Trade accounts payable | $ | 103.6 | $ | 108.4 | ||||
Total accounts payable | $ | 103.6 | $ | 108.4 | ||||
Accrued expenses and other liabilities: | ||||||||
Interest payable | $ | 7.8 | $ | 15.7 | ||||
Income taxes payable | 6.1 | 2.5 | ||||||
Employee related expenses | 30.8 | 29.8 | ||||||
Restructuring expenses | 5.0 | 3.3 | ||||||
Profit sharing and incentives | 11.5 | 14.2 | ||||||
Accrued rebates | 50.0 | 56.0 | ||||||
Deferred revenue - current | 4.2 | 4.4 | ||||||
Customer advances | 2.6 | 7.4 | ||||||
Product liability | 1.4 | 2.3 | ||||||
Miscellaneous accrued expenses | 42.3 | 38.9 | ||||||
Total accrued expenses and other liabilities | $ | 161.7 | $ | 174.5 |
|
(in millions) | 2017 | 2016 | ||||||
Revolving credit facility | $ | 25.0 | $ | 63.5 | ||||
Term Loan B | 815.0 | 825.0 | ||||||
Senior Notes due 2024 | 425.0 | 425.0 | ||||||
Capital leases | 2.7 | 3.3 | ||||||
Total debt and capital leases, including current portion | 1,267.7 | 1,316.8 | ||||||
Less current portion of capital leases | (0.7 | ) | (1.6 | ) | ||||
Less unamortized debt issuance costs (1) | (26.4 | ) | (36.5 | ) | ||||
Less hedge accounting fair value adjustment (2) | (8.4 | ) | — | |||||
Total long-term debt and capital leases | $ | 1,232.2 | $ | 1,278.7 |
(in millions) | ||||
Year ending December 31: | ||||
2018 | $ | — | ||
2019 | — | |||
2020 | — | |||
2021 | 25.0 | |||
2022 | — | |||
Thereafter | 1,240.0 | |||
$ | 1,265.0 |
Fiscal Quarter Ending | Consolidated Total Leverage Ratio Level (less than) | Actual Consolidated Total Leverage Ratio | Consolidated Interest Coverage Ratio Level (greater than) | Actual Consolidated Interest Coverage Ratio | ||||
March 31, 2017 | 5.50:1.00 | 5.20:1.00 | 2.50:1.00 | 2.71:1.00 | ||||
June 30, 2017 | 5.25:1.00 | 5.06:1.00 | 2.50:1.00 | 2.87:1.00 | ||||
September 30, 2017 | 5.00:1.00 | 4.82:1.00 | 2.75:1.00 | 3.06:1.00 | ||||
December 31, 2017 (1) | 4.75:1.00 | 4.53:1.00 | 3.00:1.00 | 3.25:1.00 |
Year | Percentage | ||
2019 | 107.125 | % | |
2020 | 104.750 | % | |
2021 | 102.375 | % | |
2022 and thereafter | 100.000 | % |
|
(in millions) | 2017 | 2016 | 2015 | |||||||||
Domestic | $ | 20.6 | $ | 30.5 | $ | 121.3 | ||||||
Foreign | 98.2 | 74.3 | 75.1 | |||||||||
Total | $ | 118.8 | $ | 104.8 | $ | 196.4 |
(in millions) | 2017 | 2016 | 2015 | |||||||||
Current: | ||||||||||||
Federal and state | $ | 21.9 | $ | 15.7 | $ | 51.1 | ||||||
Foreign | 26.2 | 19.5 | 18.2 | |||||||||
Total current expense | 48.1 | 35.2 | 69.3 | |||||||||
Deferred: | ||||||||||||
Federal and state | (55.6 | ) | (15.5 | ) | (27.9 | ) | ||||||
Foreign | (7.7 | ) | 5.6 | (2.1 | ) | |||||||
Total deferred benefit | (63.3 | ) | (9.9 | ) | (30.0 | ) | ||||||
Income taxes | $ | (15.2 | ) | $ | 25.3 | $ | 39.3 |
2017 | 2016 | 2015 | |||||||
Federal income tax at statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | |||
State income (benefit) provision | (2.9 | ) | 1.5 | 1.4 | |||||
Manufacturing and research incentives | (1.7 | ) | (1.9 | ) | (1.7 | ) | |||
Taxes on foreign income | (6.6 | ) | (9.3 | ) | (9.6 | ) | |||
Repatriation of foreign income - Tax Act | 11.4 | — | — | ||||||
Change in federal income tax statutory rate - Tax Act | (38.3 | ) | — | — | |||||
Adjustments for valuation allowances | (10.6 | ) | 2.5 | (13.8 | ) | ||||
Business divestitures | — | — | 4.1 | ||||||
Out of period adjustments | — | (2.8 | ) | — | |||||
Other items | 0.9 | (0.9 | ) | 4.6 | |||||
Effective tax rate | (12.8 | )% | 24.1 | % | 20.0 | % |
(in millions) | 2017 | 2016 | ||||||
Non-current deferred tax assets (liabilities): | ||||||||
Inventories | $ | 3.5 | $ | 7.2 | ||||
Accounts receivable | 0.9 | 1.7 | ||||||
Property, plant and equipment | (2.4 | ) | (2.7 | ) | ||||
Intangible assets | (118.0 | ) | (190.8 | ) | ||||
Deferred employee benefits | 19.9 | 19.2 | ||||||
Product warranty reserves | 7.5 | 13.3 | ||||||
Product liability reserves | 2.2 | 0.9 | ||||||
Loss carryforwards | 41.3 | 43.8 | ||||||
Deferred revenue | — | 1.3 | ||||||
Other | 12.9 | 35.4 | ||||||
Non-current deferred tax liabilities | (32.2 | ) | (70.7 | ) | ||||
Less valuation allowance | (42.0 | ) | (59.9 | ) | ||||
Net non-current deferred tax liabilities | $ | (74.2 | ) | $ | (130.6 | ) |
(in millions) | 2017 | 2016 | Financial Statement Line Item | |||||||
Income taxes receivable | $ | 4.3 | $ | 2.9 | Prepaids and other current assets | |||||
Deferred tax assets | 18.1 | 7.2 | Other non-current assets | |||||||
Income taxes payable | (6.2 | ) | (2.5 | ) | Accrued expenses and other liabilities | |||||
Income taxes payable | (12.5 | ) | — | Other long-term liabilities | ||||||
Deferred tax liabilities | (92.3 | ) | (137.8 | ) | Deferred income taxes |
(in millions) | 2017 | 2016 | 2015 | |||||||||
Balance at beginning of year | $ | 12.5 | $ | 16.6 | $ | 16.6 | ||||||
Additions based on tax positions related to the current year | — | 0.8 | 0.2 | |||||||||
Additions for tax positions of prior years | 0.2 | 1.0 | — | |||||||||
Reductions for tax positions of prior years | (0.4 | ) | — | — | ||||||||
Reductions for equity adjustment | — | (4.3 | ) | — | ||||||||
Reductions for lapse of statute | — | (1.6 | ) | (0.2 | ) | |||||||
Balance at end of year | $ | 12.3 | $ | 12.5 | $ | 16.6 |
|
(in millions) | 2017 | 2016 | 2015 | |||||||||
Gain on sale of Kysor Panel Systems (1) | $ | — | $ | — | $ | (9.9 | ) | |||||
Gain on sale of investment property | — | — | (5.4 | ) | ||||||||
Gain on acquisition of Thailand joint venture (2) | — | — | (4.9 | ) | ||||||||
Amortization of debt issuance costs | 5.4 | 4.8 | — | |||||||||
Other | 3.6 | 4.3 | (1.9 | ) | ||||||||
Other expense (income) — net | $ | 9.0 | $ | 9.1 | $ | (22.1 | ) |
|
(in millions) | 2017 | 2016 | ||||||
Foreign currency translation, net of income tax benefit of $2.8 and zero, respectively | $ | 4.4 | $ | (9.8 | ) | |||
Derivative instrument fair market value, net of income tax expense of $1.8 and zero, respectively | 3.6 | 0.8 | ||||||
Employee pension and postretirement benefit adjustments, net of income tax benefit of $6.5 and $6.3, respectively | (40.0 | ) | (34.4 | ) | ||||
$ | (32.0 | ) | $ | (43.4 | ) |
(in millions) | Foreign Currency Translation (1) | Gains and Losses on Cash Flow Hedges | Pension & Postretirement | Total | ||||||||||||
Balance at December 31, 2014 | $ | 17.3 | $ | (1.0 | ) | $ | (37.0 | ) | $ | (20.7 | ) | |||||
Other comprehensive (loss) income before reclassifications | (25.2 | ) | (6.1 | ) | 1.1 | (30.2 | ) | |||||||||
Amounts reclassified out | — | 4.8 | 1.1 | 5.9 | ||||||||||||
Tax effect | — | 0.5 | — | 0.5 | ||||||||||||
Net current period other comprehensive (loss) income | (25.2 | ) | (0.8 | ) | 2.2 | (23.8 | ) | |||||||||
Balance at December 31, 2015 | (7.9 | ) | (1.8 | ) | (34.8 | ) | (44.5 | ) | ||||||||
Other comprehensive (loss) income before reclassifications | (1.9 | ) | 2.1 | (1.5 | ) | (1.3 | ) | |||||||||
Amounts reclassified out | — | 1.5 | 2.5 | 4.0 | ||||||||||||
Tax effect | — | (1.0 | ) | (0.6 | ) | (1.6 | ) | |||||||||
Net current period other comprehensive (loss) income | (1.9 | ) | 2.6 | 0.4 | 1.1 | |||||||||||
Balance at December 31, 2016 | (9.8 | ) | 0.8 | (34.4 | ) | (43.4 | ) | |||||||||
Other comprehensive income (loss) before reclassifications | 11.4 | 9.0 | (7.8 | ) | 12.6 | |||||||||||
Amounts reclassified out | — | (4.4 | ) | 2.0 | (2.4 | ) | ||||||||||
Tax effect | 2.8 | (1.8 | ) | 0.2 | 1.2 | |||||||||||
Net current period other comprehensive income (loss) | 14.2 | 2.8 | (5.6 | ) | 11.4 | |||||||||||
Balance at December 31, 2017 | $ | 4.4 | $ | 3.6 | $ | (40.0 | ) | $ | (32.0 | ) |
(in millions) | 2017 | 2016 | 2015 | Recognized Location | ||||||||||||
Gains (losses) on cash flow hedges: | ||||||||||||||||
Foreign currency exchange contracts | $ | 3.3 | $ | — | $ | (1.4 | ) | Cost of sales | ||||||||
Commodity contracts | 1.1 | (1.5 | ) | (3.4 | ) | Cost of sales | ||||||||||
4.4 | (1.5 | ) | (4.8 | ) | Total before tax | |||||||||||
(1.6 | ) | 0.6 | 1.8 | Tax (expense) benefit | ||||||||||||
$ | 2.8 | $ | (0.9 | ) | $ | (3.0 | ) | Net of tax | ||||||||
Amortization of pension and postretirement items: | ||||||||||||||||
Actuarial losses | $ | (2.0 | ) | $ | (2.5 | ) | $ | (1.1 | ) | (a) | ||||||
(2.0 | ) | (2.5 | ) | (1.1 | ) | Total before tax | ||||||||||
0.7 | 1.0 | — | Tax benefit | |||||||||||||
$ | (1.3 | ) | $ | (1.5 | ) | $ | (1.1 | ) | Net of tax | |||||||
Total reclassifications for the period | $ | 1.5 | $ | (2.4 | ) | $ | (4.1 | ) | Net of tax |
|
Years Ended December 31, | ||||||||||||
(in millions) | 2017 | 2016 | 2015 | |||||||||
Stock-based compensation expense: | ||||||||||||
Selling, general and administrative expenses | $ | 8.1 | $ | 4.7 | $ | 2.3 | ||||||
Separation expense | 0.1 | 1.6 | — | |||||||||
Restructuring expense | 2.9 | — | — | |||||||||
Total stock-based compensation expense | $ | 11.1 | $ | 6.3 | $ | 2.3 |
Years Ended December 31, | ||||||||||||
(in millions) | 2017 | 2016 | 2015 | |||||||||
Stock-based compensation expense: | ||||||||||||
Stock options | $ | 3.0 | $ | 1.2 | $ | 0.6 | ||||||
Restricted stock awards and units | 3.6 | 3.0 | 1.3 | |||||||||
Performance share units | 4.5 | 2.1 | 0.4 | |||||||||
Total stock-based compensation expense | $ | 11.1 | $ | 6.3 | $ | 2.3 |
Years Ended December 31, | ||||||||||||
(in millions, except weighted average grant date fair value per option granted) | 2017 | 2016 | 2015 | |||||||||
Weighted average grant date fair value per option granted | $ | 7.86 | $ | 5.97 | $ | 10.40 | ||||||
Fair value of options vested | 3.0 | 2.8 | 6.8 | |||||||||
Intrinsic value of options exercised | 7.5 | 8.5 | 0.1 | |||||||||
Excess tax benefit for tax deductions related to the exercise of stock options | 1.2 | — | — | |||||||||
Cash received from option exercises, net of tax withholding | 1.9 | 12.9 | — | |||||||||
Tax benefits for stock-option compensation expense | 0.7 | 0.5 | 0.2 |
(in millions, except weighted average exercise price and contractual life) | Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | |||||||||
Options outstanding as of January 1, 2017 | 3.6 | $ | 15.62 | 4.5 | $ | 20.0 | |||||||
Granted | 0.3 | 18.67 | |||||||||||
Exercised | (0.6 | ) | 8.19 | ||||||||||
Forfeited | (0.1 | ) | 16.54 | ||||||||||
Canceled | (0.5 | ) | 24.34 | ||||||||||
Options outstanding as of December 31, 2017 (1) | 2.7 | $ | 15.95 | 4.9 | $ | 22.9 | |||||||
Options vested and expected to vest as of December 31, 2017 (2) | 2.7 | $ | 15.94 | 4.8 | $ | 22.5 | |||||||
Options exercisable as of December 31, 2017 | 2.2 | $ | 15.81 | 4.0 | $ | 18.8 |
Years Ended December 31, | |||||||||
2017 | 2016 | 2015 | |||||||
Expected life (years) | 6.0 | 6.0 | 6.0 | ||||||
Risk-free interest rate | 2.3 | % | 1.6 | % | 1.8 | % | |||
Expected volatility | 39.0 | % | 39.0 | % | 56.0 | % | |||
Expected dividend yield | — | % | — | % | 0.3 | % |
(in millions, except weighted average grant date fair value) | Performance Share Units | Weighted Average Grant Date Fair Value | |||||
Unvested as of January 1, 2017 | 0.5 | $ | 16.88 | ||||
Granted | 0.3 | 18.67 | |||||
Vested | (0.2 | ) | 20.52 | ||||
Forfeited | (0.1 | ) | 16.60 | ||||
Unvested as of December 31, 2017 | 0.5 | $ | 16.87 |
Years Ended December 31, | ||||||||||||
(in millions, except weighted average grant date fair value per award granted) | 2017 | 2016 | 2015 | |||||||||
Weighted average grant date fair value per award granted | $ | 21.39 | $ | 15.25 | $ | 21.90 | ||||||
Fair value of awards vested | 4.0 | 2.8 | — | |||||||||
Tax benefits for restricted stock compensation expense | 0.8 | 1.2 | 0.5 |
Award Date | PSUs Outstanding (in millions) | Expected Vesting Threshold | ||||
2016 Program | 0.3 | 125.0 | % | |||
2017 Program | 0.2 | 100.0 | % | |||
Total PSUs outstanding | 0.5 |
Years Ended December 31, | ||||||||||||
(in millions, except weighted average grant date fair value per award granted) | 2017 | 2016 | 2015 | |||||||||
Weighted average grant date fair value per award granted | $ | 18.70 | $ | 14.97 | $ | — | ||||||
Fair value of awards vested | 3.0 | 3.6 | 6.0 | |||||||||
Tax benefits for PSU compensation expense | 1.0 | 0.8 | 0.1 |
|
(in millions) | 2017 | 2016 | ||||||
Balance at the beginning of the period | $ | 36.3 | $ | 40.0 | ||||
Accruals for warranties issued | 33.3 | 22.1 | ||||||
Settlements made (in cash or in kind) | (34.4 | ) | (25.1 | ) | ||||
Currency translation impact | 0.8 | (0.7 | ) | |||||
Balance at the end of the period (1) | $ | 36.0 | $ | 36.3 |
|
(in millions) | 2017 | 2016 | ||||||
Balance at January 1 | $ | 14.4 | $ | 16.8 | ||||
Restructuring charges | 10.8 | 2.5 | ||||||
Use of reserve | (6.2 | ) | (4.9 | ) | ||||
Non-cash adjustment (1) | (2.9 | ) | — | |||||
Balance at December 31 | $ | 16.1 | $ | 14.4 |
|
Pension Plans | Postretirement Health and Other | |||||||||||||||||||||||
(in millions) | 2017 | 2016 | 2015 | 2017 | 2016 | 2015 | ||||||||||||||||||
Service cost - benefits earned during the year | $ | — | $ | 0.2 | $ | 0.4 | $ | — | $ | — | $ | — | ||||||||||||
Interest cost of projected benefit obligation | 5.4 | 8.3 | 6.5 | 0.3 | 0.4 | 0.1 | ||||||||||||||||||
Expected return on assets | (6.2 | ) | (6.2 | ) | (5.4 | ) | — | — | — | |||||||||||||||
Amortization of actuarial net loss (gain) | 2.0 | 2.5 | 1.2 | — | — | (0.1 | ) | |||||||||||||||||
Net periodic benefit cost | $ | 1.2 | $ | 4.8 | $ | 2.7 | $ | 0.3 | $ | 0.4 | $ | — | ||||||||||||
Weighted average assumptions: | ||||||||||||||||||||||||
Discount rate | 3.1 | % | 3.9 | % | 3.5 | % | 3.5 | % | 3.9 | % | 3.7 | % | ||||||||||||
Expected return on plan assets | 3.6 | % | 3.7 | % | 3.5 | % | N/A | N/A | N/A | |||||||||||||||
Rate of compensation increase | — | % | 4.0 | % | 4.0 | % | 1.5 | % | 1.5 | % | 1.5 | % |
Pension Plans | Postretirement Health and Other | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Change in Benefit Obligation | ||||||||||||||||
Benefit obligation, beginning of year | $ | 203.9 | $ | 177.2 | $ | 9.0 | $ | 3.2 | ||||||||
Service cost | — | 0.2 | — | — | ||||||||||||
Interest cost | 5.4 | 8.3 | 0.3 | 0.4 | ||||||||||||
Participant contributions | — | — | 0.6 | 0.4 | ||||||||||||
Plan combinations | — | 55.6 | — | 6.8 | ||||||||||||
Actuarial loss | 7.7 | 4.1 | 1.7 | — | ||||||||||||
Currency translation adjustment | 13.8 | (29.3 | ) | 0.1 | — | |||||||||||
Benefits paid | (14.0 | ) | (12.2 | ) | (1.6 | ) | (1.8 | ) | ||||||||
Benefit obligation, end of year | $ | 216.8 | $ | 203.9 | $ | 10.1 | $ | 9.0 | ||||||||
Change in Plan Assets | ||||||||||||||||
Fair value of plan assets, beginning of year | $ | 163.8 | $ | 147.9 | $ | — | $ | — | ||||||||
Actual return on plan assets | 9.2 | 14.1 | — | — | ||||||||||||
Employer contributions | 5.4 | 6.1 | 1.0 | 1.4 | ||||||||||||
Participant contributions | — | — | 0.6 | 0.4 | ||||||||||||
Plan combinations | — | 34.1 | — | — | ||||||||||||
Currency translation adjustment | 12.3 | (26.2 | ) | — | — | |||||||||||
Benefits paid | (14.0 | ) | (12.2 | ) | (1.6 | ) | (1.8 | ) | ||||||||
Fair value of plan assets, end of year | $ | 176.7 | $ | 163.8 | $ | — | $ | — | ||||||||
Unfunded status (1) | $ | (40.1 | ) | $ | (40.1 | ) | $ | (10.1 | ) | $ | (9.0 | ) | ||||
Weighted-Average Assumptions | ||||||||||||||||
Discount rate | 2.8 | % | 3.1 | % | 3.2 | % | 3.5 | % | ||||||||
Rate of compensation increase | — | % | — | % | 1.5 | % | 1.5 | % |
Pension Plans | Postretirement Health and Other | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Net actuarial loss | $ | (44.3 | ) | $ | (40.5 | ) | $ | (2.2 | ) | $ | (0.5 | ) | ||||
Total amount recognized | $ | (44.3 | ) | $ | (40.5 | ) | $ | (2.2 | ) | $ | (0.5 | ) |
Change in assumption: | Estimated increase (decrease) in 2018 pension cost | Estimated increase (decrease) in projected benefit obligation for the year ended December 31, 2017 | Estimated increase (decrease) in 2018 other postretirement benefit costs | Estimated increase (decrease) in other postretirement benefit obligation for the year ended December 31, 2017 | ||||||||||||
0.5% increase in discount rate | $ | (0.5 | ) | $ | (14.6 | ) | $ | — | $ | (0.3 | ) | |||||
0.5% decrease in discount rate | 0.5 | 16.0 | — | 0.3 | ||||||||||||
0.5% increase in long-term return on assets | (0.9 | ) | N/A | N/A | N/A | |||||||||||
0.5% decrease in long-term return on assets | 0.9 | N/A | N/A | N/A | ||||||||||||
1% increase in medical trend rates | N/A | N/A | 0.1 | 0.6 | ||||||||||||
1% decrease in medical trend rates | N/A | N/A | (0.1 | ) | (0.5 | ) |
2017 | 2016 | |||||
Equity securities | 17.6 | % | 20.8 | % | ||
Debt securities | 34.6 | % | 34.5 | % | ||
Other | 47.8 | % | 44.7 | % | ||
100.0 | % | 100.0 | % |
Target Allocations | Weighted Average Asset Allocations | |||||
Equity securities | 20.4 | % | 17.6 | % | ||
Debt securities | 36.2 | % | 34.6 | % | ||
Other | 43.4 | % | 47.8 | % |
December 31, 2017 | ||||||||||||||||
Assets (in millions) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | Total | ||||||||||||
Cash and cash equivalents | $ | 2.4 | $ | — | $ | — | $ | 2.4 | ||||||||
Insurance group annuity contracts | — | 74.6 | 74.6 | |||||||||||||
Common/collective trust funds — Government, corporate and other non-government debt | — | 63.2 | — | 63.2 | ||||||||||||
Common/collective trust funds — Corporate equity | — | 30.4 | — | 30.4 | ||||||||||||
Common/collective trust funds — Customized strategy | — | 6.1 | — | 6.1 | ||||||||||||
Total | $ | 2.4 | $ | 99.7 | $ | 74.6 | $ | 176.7 |
December 31, 2016 | ||||||||||||||||
Assets (in millions) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | Total | ||||||||||||
Cash and cash equivalents | $ | 1.0 | $ | — | $ | — | $ | 1.0 | ||||||||
Insurance group annuity contracts | — | — | 72.2 | 72.2 | ||||||||||||
Common/collective trust funds — Government, corporate and other non-government debt | — | 51.6 | — | 51.6 | ||||||||||||
Common/collective trust funds — Corporate equity | — | 34.1 | — | 34.1 | ||||||||||||
Common/collective trust funds — Customized strategy | — | 4.9 | — | 4.9 | ||||||||||||
Total | $ | 1.0 | $ | 90.6 | $ | 72.2 | $ | 163.8 |
Insurance Contracts Year Ended December 31, | ||||||||
(in millions) | 2017 | 2016 | ||||||
Beginning Balance | $ | 72.2 | $ | 89.9 | ||||
Actual return on assets | — | 2.5 | ||||||
Benefit payments | (4.6 | ) | (4.8 | ) | ||||
Foreign currency impact | 7.0 | (15.4 | ) | |||||
Ending Balance | $ | 74.6 | $ | 72.2 |
(in millions) | Pension Plans | Postretirement Health and Other | ||||||
2018 | $ | 10.9 | $ | 1.3 | ||||
2019 | 11.0 | 1.3 | ||||||
2020 | 11.2 | 1.2 | ||||||
2021 | 11.2 | 1.2 | ||||||
2022 | 11.2 | 1.2 | ||||||
2023-2027 | 54.7 | 3.4 |
Pension Plans | ||||||||
(in millions) | 2017 | 2016 | ||||||
Projected benefit obligation | $ | 216.8 | $ | 203.9 | ||||
Accumulated benefit obligation | 216.8 | 203.9 | ||||||
Fair value of plan assets | 176.7 | 163.8 |
|
(in millions) | |||
Year ending December 31: | |||
2018 | $ | 13.3 | |
2019 | 11.2 | ||
2020 | 7.6 | ||
2021 | 5.1 | ||
2022 | 3.4 | ||
Thereafter | 2.9 | ||
$ | 43.5 |
|
Years Ended December 31, | ||||||||||||
(in millions, except percentage data) | 2017 | 2016 | 2015 | |||||||||
Net sales: | ||||||||||||
Americas | $ | 1,166.8 | $ | 1,186.6 | $ | 1,323.7 | ||||||
EMEA | 296.5 | 287.6 | 281.6 | |||||||||
APAC | 190.2 | 190.9 | 191.1 | |||||||||
Elimination of intersegment sales | (208.1 | ) | (208.5 | ) | (226.3 | ) | ||||||
Total net sales | $ | 1,445.4 | $ | 1,456.6 | $ | 1,570.1 | ||||||
Segment Adjusted Operating EBITDA: | ||||||||||||
Americas | $ | 240.7 | $ | 233.6 | $ | 215.6 | ||||||
EMEA | 55.2 | 44.3 | 27.0 | |||||||||
APAC | 22.7 | 24.7 | 25.3 | |||||||||
Total Segment Adjusted Operating EBITDA | 318.6 | 302.6 | 267.9 | |||||||||
Corporate and unallocated | (43.2 | ) | (42.6 | ) | (38.2 | ) | ||||||
Amortization expense | (31.2 | ) | (31.2 | ) | (31.4 | ) | ||||||
Depreciation expense | (16.7 | ) | (17.3 | ) | (19.6 | ) | ||||||
Separation expense | (1.6 | ) | (6.5 | ) | (4.3 | ) | ||||||
Restructuring expense | (10.8 | ) | (2.5 | ) | (4.6 | ) | ||||||
Gain (loss) from impairment or disposal of assets — net | 4.0 | (3.3 | ) | (9.9 | ) | |||||||
Earnings from operations | 219.1 | 199.2 | 159.9 | |||||||||
Interest expense | (86.9 | ) | (85.2 | ) | (1.4 | ) | ||||||
Interest (expense) income on notes with MTW — net | — | (0.1 | ) | 15.8 | ||||||||
Loss on early extinguishment of debt | (4.4 | ) | — | — | ||||||||
Other (expense) income — net | (9.0 | ) | (9.1 | ) | 22.1 | |||||||
Earnings before income taxes | $ | 118.8 | $ | 104.8 | $ | 196.4 | ||||||
Adjusted Operating EBITDA % by segment (1) : | ||||||||||||
Americas | 20.6 | % | 19.7 | % | 16.3 | % | ||||||
EMEA | 18.6 | % | 15.4 | % | 9.6 | % | ||||||
APAC | 11.9 | % | 12.9 | % | 13.2 | % | ||||||
(1) Adjusted Operating EBITDA % in the section above is calculated by dividing the dollar amount of Adjusted Operating EBITDA by net sales for each respective segment. | ||||||||||||
Capital expenditures: | ||||||||||||
Americas | $ | 17.2 | $ | 12.4 | $ | 8.4 | ||||||
EMEA | 2.0 | 0.9 | 1.5 | |||||||||
APAC | 1.0 | 1.8 | 1.4 | |||||||||
Corporate | 0.5 | 0.9 | 1.9 | |||||||||
Total capital expenditures | $ | 20.7 | $ | 16.0 | $ | 13.2 | ||||||
Depreciation: | ||||||||||||
Americas | $ | 11.5 | $ | 12.1 | $ | 14.3 | ||||||
EMEA | 2.4 | 2.5 | 2.6 | |||||||||
APAC | 1.9 | 2.0 | 2.1 | |||||||||
Corporate | 0.9 | 0.7 | 0.6 | |||||||||
Total depreciation | $ | 16.7 | $ | 17.3 | $ | 19.6 |
(in millions) | 2017 | 2016 | ||||||
Total assets by segment: | ||||||||
Americas | $ | 1,445.6 | $ | 1,463.7 | ||||
EMEA | 112.1 | 102.6 | ||||||
APAC | 128.7 | 110.8 | ||||||
Corporate | 154.0 | 92.0 | ||||||
Total assets | $ | 1,840.4 | $ | 1,769.1 |
(in millions) | 2017 | 2016 | 2015 | |||||||||
Commercial foodservice whole goods | $ | 1,173.3 | $ | 1,191.0 | $ | 1,277.2 | ||||||
Aftermarket parts and support | 272.1 | 265.6 | 292.9 | |||||||||
Total net sales | $ | 1,445.4 | $ | 1,456.6 | $ | 1,570.1 |
(in millions) | 2017 | 2016 | 2015 | |||||||||
Net sales by geographic area (1): | ||||||||||||
United States | $ | 945.6 | $ | 945.7 | $ | 1,066.7 | ||||||
Other Americas | 95.0 | 104.3 | 106.6 | |||||||||
EMEA | 239.2 | 242.0 | 237.2 | |||||||||
APAC | 165.6 | 164.6 | 159.6 | |||||||||
Total net sales by geographic area | $ | 1,445.4 | $ | 1,456.6 | $ | 1,570.1 |
(in millions) | 2017 | 2016 | ||||||
Property, plant and equipment - net by geographic area: | ||||||||
United States | $ | 68.1 | $ | 68.1 | ||||
Other Americas | 19.5 | 17.1 | ||||||
EMEA | 11.6 | 10.8 | ||||||
APAC | 13.0 | 13.1 | ||||||
Total property, plant, equipment - net by geographic area | $ | 112.2 | $ | 109.1 |
|
2017 | ||||||||||||||||
(in millions, except per share data) | First | Second | Third | Fourth | ||||||||||||
Net sales | $ | 328.0 | $ | 371.1 | $ | 380.4 | $ | 365.9 | ||||||||
Gross profit | 123.0 | 137.2 | 143.9 | 132.8 | ||||||||||||
Net earnings | 5.0 | 30.1 | 33.1 | 65.8 | ||||||||||||
Per share data | ||||||||||||||||
Earnings per share — Basic | $ | 0.04 | $ | 0.22 | $ | 0.24 | $ | 0.47 | ||||||||
Earnings per share — Diluted | $ | 0.04 | $ | 0.21 | $ | 0.24 | $ | 0.47 |
2016 | ||||||||||||||||
(in millions, except per share data) | First | Second | Third | Fourth | ||||||||||||
Net sales | $ | 325.5 | $ | 368.4 | $ | 384.0 | $ | 378.7 | ||||||||
Gross profit | 117.6 | 134.7 | 142.0 | 138.5 | ||||||||||||
Net earnings | 18.1 | 15.1 | 24.9 | 21.4 | ||||||||||||
Per share data (1) | ||||||||||||||||
Earnings per share — Basic | $ | 0.13 | $ | 0.11 | $ | 0.18 | $ | 0.15 | ||||||||
Earnings per share — Diluted | $ | 0.13 | $ | 0.11 | $ | 0.18 | $ | 0.15 |
|
(in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Consolidating Adjustments | Consolidated | |||||||||||||||
Net sales | $ | — | $ | 1,070.0 | $ | 782.2 | $ | (395.6 | ) | $ | 1,456.6 | |||||||||
Cost of sales | 3.4 | 775.9 | 540.1 | (395.6 | ) | 923.8 | ||||||||||||||
Gross profit | (3.4 | ) | 294.1 | 242.1 | — | 532.8 | ||||||||||||||
Selling, general and administrative expenses | 35.5 | 152.9 | 101.7 | — | 290.1 | |||||||||||||||
Amortization expense | — | 28.4 | 2.8 | — | 31.2 | |||||||||||||||
Separation expense | 6.3 | — | 0.2 | — | 6.5 | |||||||||||||||
Restructuring expense | — | 1.6 | 0.9 | — | 2.5 | |||||||||||||||
Loss from impairment or disposal of assets — net | — | 2.9 | 0.4 | — | 3.3 | |||||||||||||||
(Loss) earnings from operations | (45.2 | ) | 108.3 | 136.1 | — | 199.2 | ||||||||||||||
Interest expense | 82.2 | 1.2 | 1.8 | — | 85.2 | |||||||||||||||
Interest expense on notes with MTW — net | — | — | 0.1 | — | 0.1 | |||||||||||||||
Other (income) expense — net | (5.6 | ) | 19.6 | (4.9 | ) | — | 9.1 | |||||||||||||
Equity in earnings (loss) of subsidiaries | 200.5 | 114.0 | — | (314.5 | ) | — | ||||||||||||||
Earnings (loss) before income taxes | 78.7 | 201.5 | 139.1 | (314.5 | ) | 104.8 | ||||||||||||||
Income taxes | (0.8 | ) | 1.0 | 25.1 | — | 25.3 | ||||||||||||||
Net earnings (loss) | $ | 79.5 | $ | 200.5 | $ | 114.0 | $ | (314.5 | ) | $ | 79.5 | |||||||||
Total other comprehensive income (loss), net of tax | 1.1 | 3.0 | 7.3 | (10.3 | ) | 1.1 | ||||||||||||||
Comprehensive income (loss) | $ | 80.6 | $ | 203.5 | $ | 121.3 | $ | (324.8 | ) | $ | 80.6 |
(in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Consolidating Adjustments | Consolidated | |||||||||||||||
Net sales | $ | — | $ | 1,109.8 | $ | 809.9 | $ | (349.6 | ) | $ | 1,570.1 | |||||||||
Cost of sales | 0.1 | 803.6 | 614.3 | (349.6 | ) | 1,068.4 | ||||||||||||||
Gross (loss) profit | (0.1 | ) | 306.2 | 195.6 | — | 501.7 | ||||||||||||||
Selling, general and administrative expenses | 32.2 | 144.6 | 114.8 | — | 291.6 | |||||||||||||||
Amortization expense | — | 28.5 | 2.9 | — | 31.4 | |||||||||||||||
Separation expense (income) | 4.4 | 0.1 | (0.2 | ) | — | 4.3 | ||||||||||||||
Restructuring expense | — | 1.9 | 2.7 | — | 4.6 | |||||||||||||||
Loss from impairment or disposal of assets — net | — | 8.4 | 1.5 | — | 9.9 | |||||||||||||||
(Loss) earnings from operations | (36.7 | ) | 122.7 | 73.9 | — | 159.9 | ||||||||||||||
Interest expense | — | 1.2 | 0.2 | — | 1.4 | |||||||||||||||
Interest income on notes with MTW — net | — | (14.9 | ) | (0.9 | ) | — | (15.8 | ) | ||||||||||||
Other (income) expense — net | (78.6 | ) | 77.8 | (21.3 | ) | — | (22.1 | ) | ||||||||||||
Equity in earnings (loss) of subsidiaries | 123.2 | 77.9 | — | (201.1 | ) | — | ||||||||||||||
Earnings (loss) before income taxes | 165.1 | 136.5 | 95.9 | (201.1 | ) | 196.4 | ||||||||||||||
Income taxes | 8.0 | 13.3 | 18.0 | — | 39.3 | |||||||||||||||
Net earnings (loss) | $ | 157.1 | $ | 123.2 | $ | 77.9 | $ | (201.1 | ) | $ | 157.1 | |||||||||
Total other comprehensive (loss) income, net of tax | (23.8 | ) | (27.7 | ) | (26.9 | ) | 54.6 | (23.8 | ) | |||||||||||
Comprehensive income (loss) | $ | 133.3 | $ | 95.5 | $ | 51.0 | $ | (146.5 | ) | $ | 133.3 |
(in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Consolidating Adjustments | Consolidated | |||||||||||||||
Assets | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 0.4 | $ | 2.3 | $ | 51.1 | $ | — | $ | 53.8 | ||||||||||
Restricted cash | — | — | 6.4 | — | 6.4 | |||||||||||||||
Accounts receivable — net | 0.5 | — | 86.1 | (4.9 | ) | 81.7 | ||||||||||||||
Inventories — net | — | 74.3 | 71.3 | — | 145.6 | |||||||||||||||
Prepaids and other current assets | 0.9 | 4.5 | 8.5 | — | 13.9 | |||||||||||||||
Current assets held for sale | — | 2.3 | 4.5 | — | 6.8 | |||||||||||||||
Total current assets | 1.8 | 83.4 | 227.9 | (4.9 | ) | 308.2 | ||||||||||||||
Property, plant and equipment — net | 1.2 | 67.9 | 40.0 | — | 109.1 | |||||||||||||||
Goodwill | — | 832.4 | 12.9 | — | 845.3 | |||||||||||||||
Other intangible assets — net | — | 423.5 | 60.9 | — | 484.4 | |||||||||||||||
Intercompany long-term note receivable | — | 20.0 | — | (20.0 | ) | — | ||||||||||||||
Due from affiliates | — | 3,085.8 | — | (3,085.8 | ) | — | ||||||||||||||
Investment in subsidiaries | 3,780.3 | — | — | (3,780.3 | ) | — | ||||||||||||||
Other non-current assets | 2.7 | 5.1 | 19.7 | (5.4 | ) | 22.1 | ||||||||||||||
Total assets | $ | 3,786.0 | $ | 4,518.1 | $ | 361.4 | $ | (6,896.4 | ) | $ | 1,769.1 | |||||||||
Liabilities and equity | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Accounts payable | $ | 0.1 | $ | 64.6 | $ | 48.6 | $ | (4.9 | ) | $ | 108.4 | |||||||||
Accrued expenses and other liabilities | 14.1 | 97.5 | 62.9 | — | 174.5 | |||||||||||||||
Current portion of capital leases | — | 0.5 | 1.1 | — | 1.6 | |||||||||||||||
Product warranties | — | 18.4 | 9.5 | — | 27.9 | |||||||||||||||
Current liabilities held for sale | — | — | 0.7 | — | 0.7 | |||||||||||||||
Total current liabilities | 14.2 | 181.0 | 122.8 | (4.9 | ) | 313.1 | ||||||||||||||
Long-term debt and capital leases | 1,277.0 | 1.7 | — | — | 1,278.7 | |||||||||||||||
Deferred income taxes | 120.5 | — | 17.3 | — | 137.8 | |||||||||||||||
Pension and postretirement health obligations | 47.9 | 4.9 | — | (5.4 | ) | 47.4 | ||||||||||||||
Intercompany long-term note payable | 15.7 | — | 4.3 | (20.0 | ) | — | ||||||||||||||
Due to affiliates | 2,344.8 | — | 741.0 | (3,085.8 | ) | — | ||||||||||||||
Investment in subsidiaries | — | 524.6 | — | (524.6 | ) | — | ||||||||||||||
Other long-term liabilities | 9.4 | 25.6 | 0.6 | — | 35.6 | |||||||||||||||
Total non-current liabilities | 3,815.3 | 556.8 | 763.2 | (3,635.8 | ) | 1,499.5 | ||||||||||||||
Total (deficit) equity: | ||||||||||||||||||||
Total (deficit) equity | (43.5 | ) | 3,780.3 | (524.6 | ) | (3,255.7 | ) | (43.5 | ) | |||||||||||
Total liabilities and equity | $ | 3,786.0 | $ | 4,518.1 | $ | 361.4 | $ | (6,896.4 | ) | $ | 1,769.1 |
(in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Consolidating Adjustments | Consolidated | |||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||
Net cash (used for) provided by operating activities | $ | (98.9 | ) | $ | 111.5 | $ | 113.2 | $ | — | $ | 125.8 | |||||||||
Cash flows from investing activities | ||||||||||||||||||||
Capital expenditures | (1.0 | ) | (8.0 | ) | (7.0 | ) | — | (16.0 | ) | |||||||||||
Changes in restricted cash | — | — | (6.0 | ) | — | (6.0 | ) | |||||||||||||
Proceeds from sale of property, plant and equipment | — | — | 0.5 | 0.5 | ||||||||||||||||
Proceeds from dispositions | — | — | 1.1 | — | 1.1 | |||||||||||||||
Intercompany investment | — | (104.4 | ) | (79.4 | ) | 183.8 | — | |||||||||||||
Net cash provided by (used for) investing activities | (1.0 | ) | (112.4 | ) | (90.8 | ) | 183.8 | (20.4 | ) | |||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Proceeds from long-term debt and capital leases | 1,499.5 | 0.2 | 1.4 | — | 1,501.1 | |||||||||||||||
Repayments on long-term debt and capital leases | (186.0 | ) | (0.5 | ) | (0.3 | ) | — | (186.8 | ) | |||||||||||
Debt issuance costs | (41.3 | ) | — | — | — | (41.3 | ) | |||||||||||||
Dividend paid to MTW | (1,362.0 | ) | — | — | — | (1,362.0 | ) | |||||||||||||
Net transactions with MTW | (6.1 | ) | — | — | — | (6.1 | ) | |||||||||||||
Exercises of stock options | 16.2 | — | — | — | 16.2 | |||||||||||||||
Payments on tax withholdings for equity awards | (3.8 | ) | — | — | — | (3.8 | ) | |||||||||||||
Intercompany financing | 183.8 | — | — | (183.8 | ) | — | ||||||||||||||
Net cash (used for) provided by financing activities | 100.3 | (0.3 | ) | 1.1 | (183.8 | ) | (82.7 | ) | ||||||||||||
Effect of exchange rate changes on cash | — | — | (0.9 | ) | — | (0.9 | ) | |||||||||||||
Net increase in cash and cash equivalents | 0.4 | (1.2 | ) | 22.6 | — | 21.8 | ||||||||||||||
Balance at beginning of period | — | 3.5 | 28.5 | — | 32.0 | |||||||||||||||
Balance at end of period | $ | 0.4 | $ | 2.3 | $ | 51.1 | $ | — | $ | 53.8 |
(in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Consolidating Adjustments | Consolidated | |||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||
Net cash provided by operating activities | $ | 376.9 | $ | (137.6 | ) | $ | (96.3 | ) | $ | — | $ | 143.0 | ||||||||
Cash flows from investing activities | ||||||||||||||||||||
Capital expenditures | (0.8 | ) | (6.5 | ) | (5.9 | ) | — | (13.2 | ) | |||||||||||
Changes in restricted cash | — | — | (0.6 | ) | — | (0.6 | ) | |||||||||||||
Business acquisitions, net of cash acquired | — | — | (5.3 | ) | — | (5.3 | ) | |||||||||||||
Proceeds from dispositions | — | 78.2 | — | — | 78.2 | |||||||||||||||
Intercompany investment | (193.2 | ) | — | — | 193.2 | — | ||||||||||||||
Net cash used for investing activities | (194.0 | ) | 71.7 | (11.8 | ) | 193.2 | 59.1 | |||||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Proceeds from long-term debt and capital leases | — | 0.5 | — | — | 0.5 | |||||||||||||||
Repayments on long-term debt and capital leases | — | (0.7 | ) | — | — | (0.7 | ) | |||||||||||||
Net transactions with MTW | (182.9 | ) | — | — | — | (182.9 | ) | |||||||||||||
Intercompany financing | — | 66.9 | 126.3 | (193.2 | ) | — | ||||||||||||||
Net cash used for financing activities | (182.9 | ) | 66.7 | 126.3 | (193.2 | ) | (183.1 | ) | ||||||||||||
Effect of exchange rate changes on cash | — | — | (3.5 | ) | — | (3.5 | ) | |||||||||||||
Net increase in cash and cash equivalents | — | 0.8 | 14.7 | — | 15.5 | |||||||||||||||
Balance at beginning of period | — | 2.7 | 13.8 | — | 16.5 | |||||||||||||||
Balance at end of period | $ | — | $ | 3.5 | $ | 28.5 | $ | — | $ | 32.0 |
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