Document and Entity Information - shares |
3 Months Ended | |
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Mar. 31, 2018 |
May 04, 2018 |
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Document and entity information | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | WBT | |
Entity Registrant Name | Welbilt, Inc. | |
Entity Central Index Key | 0001650962 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 139,927,575 |
Consolidated Statements of Operations - USD ($) $ in Millions |
3 Months Ended | |
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Mar. 31, 2018 |
Mar. 31, 2017 |
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Income Statement [Abstract] | ||
Net sales | $ 350.4 | $ 328.0 |
Cost of sales | 224.2 | 205.0 |
Gross profit | 126.2 | 123.0 |
Selling, general and administrative expenses | 76.3 | 74.0 |
Amortization expense | 7.9 | 7.8 |
Separation expense | 0.1 | 0.9 |
Restructuring expense | 0.4 | 4.6 |
(Gain) loss from impairment or disposal of assets — net | (0.1) | 0.4 |
Earnings from operations | 41.6 | 35.3 |
Interest expense | 20.3 | 23.2 |
Loss on early extinguishment of debt | 0.0 | 3.2 |
Other expense — net | 8.5 | 1.8 |
Earnings before income taxes | 12.8 | 7.1 |
Income taxes | 0.3 | 2.1 |
Net earnings | $ 12.5 | $ 5.0 |
Per share data | ||
Earnings per share - Basic (in dollars per share) | $ 0.09 | $ 0.04 |
Earnings per share - Diluted (in dollars per share) | $ 0.09 | $ 0.04 |
Weighted average shares outstanding - Basic (in shares) | 139,708,723 | 138,759,075 |
Weighted average shares outstanding - Diluted (in shares) | 140,970,543 | 140,431,198 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions |
3 Months Ended | |
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Mar. 31, 2018 |
Mar. 31, 2017 |
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Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 12.5 | $ 5.0 |
Other comprehensive income, net of tax: | ||
Foreign currency translation adjustments | 0.1 | 7.0 |
Unrealized gain (loss) on derivatives | 2.0 | (0.6) |
Employee pension and postretirement benefits | 0.5 | 0.4 |
Total other comprehensive income, net of tax | 2.6 | 6.8 |
Comprehensive income | $ 15.1 | $ 11.8 |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions |
Mar. 31, 2018 |
Dec. 31, 2017 |
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Statement of Financial Position [Abstract] | ||
Accounts receivable allowances | $ 4.0 | $ 4.0 |
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock shares issued (in shares) | 139,910,969 | 139,491,860 |
Common stock shares outstanding (in shares) | 139,910,969 | 139,440,470 |
Treasury stock (in shares) | 51,321 | 51,390 |
Description of the Business |
3 Months Ended |
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Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Description of the Business | Description of the Business Welbilt, Inc. and its consolidated subsidiaries, collectively, the "Company," is one of the world’s leading commercial foodservice equipment companies. It designs and manufactures a complementary portfolio of hot and cold foodservice equipment products integrated under one operating company and is supported by the Company's aftermarket parts and repair service business. Its capabilities span refrigeration, ice-making, cooking, holding, food-preparation and beverage-dispensing technologies, which allow it to equip entire commercial kitchens and serve the world’s growing demand for food prepared away from home. The Company's suite of products is used by commercial and institutional foodservice operators including full-service restaurants, quick-service restaurant chains, hotels, caterers, supermarkets, convenience stores, business and industrial customers, hospitals, schools and other institutions. The Company's products and aftermarket parts and service support are recognized by its customers and channel partners for their quality, reliability and durability that promote profitable growth for Welbilt end customers by improving their menus, enhancing operations and reducing costs. The Company operates in three regional segments, the Americas (includes United States ("U.S."), Canada and Latin America), EMEA (markets in Europe, including Russia and the Commonwealth of Independent States, Middle East and Africa) and APAC (principally comprises markets in China, Australia, Japan, Philippines, South Korea, Singapore, Indonesia, Taiwan, Hong Kong, Thailand, Malaysia, and New Zealand). |
Summary of Significant Accounting Policies and Basis of Presentation |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies and Basis of Presentation | Summary of Significant Accounting Policies and Basis of Presentation Principles of Consolidation and Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). All intercompany balances and transactions between the Company and its affiliates have been eliminated. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. Significant items subject to such estimates and assumptions include inventory obsolescence costs, warranty costs, product liability costs, employee benefit programs and the measurement of income tax assets and liabilities. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. On an ongoing basis, the Company evaluates these assumptions, judgments and estimates. Actual results may differ from these estimates. In the opinion of management, the consolidated financial statements contain all adjustments necessary for a fair statement of the results of operations and comprehensive income for the three months ended March 31, 2018 and 2017, the financial position at March 31, 2018 and December 31, 2017, and the results of cash flows for the three months ended March 31, 2018 and 2017, and except as otherwise discussed, such adjustments consist only of those of a normal recurring nature. The interim results are not necessarily indicative of results that may be achieved in a full reporting year. Certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the Securities and Exchange Commission's ("SEC") rules and regulations governing interim financial statements. However, the Company believes that the disclosures made in the unaudited consolidated financial statements and related notes are adequate to make the information presented not misleading. These consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. All dollar amounts, except share and per share amounts, are in millions of dollars throughout the tables included in these notes unless otherwise indicated. Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation and include:
Recently Adopted Accounting Pronouncements In May 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-09, "Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting," which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting pursuant to Topic 718. ASU 2017-09 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted. The amendments in this update are required to be applied prospectively to an award modified on or after the adoption date. This standard became effective for the Company on January 1, 2018. The impact this standard will have on the Company's consolidated financial statements and related disclosures will be dependent on the terms and conditions of any modifications made to share-based awards after January 1, 2018. In March 2017, the FASB issued ASU 2017-07, "Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost," which requires the employer to disaggregate the service cost component from the other components of net benefit cost. The ASU also provides explicit guidance on how to present the service cost component and the other components of net benefit cost in the income statement and allows only the service cost component of net benefit cost to be eligible for capitalization. As of January 1, 2018, the Company adopted this standard on a retrospective basis. Prior to adoption, periodic benefit costs for both pensions and postretirement benefits were recorded in "Selling, general and administrative expenses" in the consolidated statement of operations. As a result of adopting this ASU, the Company recognized $0.4 million of periodic pension costs and $0.1 million of periodic postretirement benefit costs in "Other expense — net" in the consolidated statement of operations for the three months ended March 31, 2018. See Note 16, "Employee Benefit Plans" for further information. In November 2016, the FASB issued ASU 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash," which requires an entity to reconcile the changes in restricted cash as part of total cash and cash equivalents in its statements of cash flows. This standard became effective for the Company on January 1, 2018. The adoption of this standard was applied retrospectively. Other than the change in presentation of restricted cash within the consolidated statements of cash flows, the adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory," which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. ASU 2016-16 became effective for the Company on January 1, 2018. Currently the Company does not have material intercompany transactions of non-inventory items, but to the extent that these business circumstances change in the future, there could be income tax impacts. In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments," which clarifies the accounting guidance on how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This standard became effective for the Company on January 1, 2018. The adoption of this standard impacts the presentation of collections of the deferred purchase price from its sales of trade accounts receivables in the Company’s consolidated statements of cash flows. Subsequent to adoption, collection of these balances is reported in cash flows from investing activities rather than cash flows from operating activities with all retrospective periods reclassified to conform for comparability. In addition, the beneficial interest obtained in exchange for securitized receivables are reported as non-cash investing activity. See Note 7, "Accounts Receivable Securitization" for further discussion. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)" with additional updates subsequently issued (collectively, "ASU 2014-09"). This ASU creates a single, comprehensive revenue recognition model for all contracts with customers. The model is based on changes in contract assets (rights to receive consideration) and liabilities (obligations to provide a good or service). On January 1, 2018, the Company adopted ASU 2014-09. Either a retrospective or cumulative effect transition method, referred to as the modified retrospective method, is permitted. The Company used the modified retrospective method and recognized the cumulative effect of the initial application of the new revenue standard as an adjustment to the opening balance of retained earnings. Prior period results have not been restated and continue to be reported under the accounting standards in effect for those periods. In connection with the adoption of this guidance, the Company elected the following practical expedients: (i) significant financing component, (ii) sales taxes, (iii) costs of obtaining a contract, (iv) shipping and handling activities and (v) immaterial promised goods or services. The adoption of ASU 2014-09 did not have a material impact on the Company's consolidated balance sheet as of March 31, 2018 or the consolidated statement of operations or cash flows for the three months ended March 31, 2018. Subsequent to the adoption of ASU 2014-09, revenue is recognized based on the satisfaction of performance obligations, which occurs when control of a good or service transfers to a customer. A majority of the Company's net sales continue to be recognized when products are shipped from its manufacturing facilities. The cumulative effect of the changes made to the Company's consolidated balance sheet as of January 1, 2018 for the adoption of ASU 2014-09 is related to the establishment of right to return assets in conjunction with its product return policy as shown below:
Substantially all of the Company's revenues comprise revenues from contracts with customers. These revenues are disaggregated by major source and geographic location, as the Company believes it best depicts how the nature, amount, timing and uncertainty of its revenue and cash flows are affected by economic factors. Net sales by product class and segment are as follows:
For the majority of foodservice equipment and aftermarket parts and support, the transfer of control and revenue recognition materializes when the products are shipped from the manufacturing facility or the service is provided to the customer. The Company typically invoices its customers with payment terms of 30 days and our average collection cycle is generally less than 60 days. The amount of consideration received and revenue recognized varies with marketing incentives such as annual customer rebate programs and returns that are offered to customers. Variable consideration as a result of customer rebate programs are typically based on calendar-year purchases, and are determined using the expected value method in interim periods as prescribed in the guidance. Customers have the right to return eligible equipment and parts. The expected returns are based on an analysis of historical experience. The estimate of revenue is adjusted at the earlier of when the most likely amount of the expected consideration changes or when the consideration becomes fixed. The impact of such adjustments was not material in the three months ended March 31, 2018. The Company also recognizes revenue for foodservice-based projects. Revenues are recognized either at the point-in-time in which control transfers to the customer and all other recognition criteria have been met or over-time as services are provided to the customer, depending on the nature of the performance obligations in each contract. The Company sells separately-priced extended warranties that extend coverage beyond the standard product warranty by 12 to 60 months. Payments are at the inception of the contract and revenue is recognized over the term of the agreement on a straight-line basis, which the Company believes approximates the timing of costs expected to be incurred in satisfying the obligations of the contract. As of March 31, 2018 and December 31, 2017, there was $6.5 million and $6.7 million, respectively, of deferred revenues related to extended warranties. The Company expects to recognize $3.3 million of the deferred revenues in 2018, of which $0.4 million was recognized in the first quarter of 2018, $1.4 million in 2019, and $2.2 million thereafter. See additional discussion of product warranties in Note 14, "Product Warranties." Recent Accounting Pronouncements Not Yet Adopted In February 2018, the FASB issued ASU 2018-02, "Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income," to provide guidance on the presentation of certain income statement effects from the Tax Cuts and Jobs Act’s reduction in the corporate statutory tax rate. The ASU provides the option of reclassifying what are called the “stranded” tax effects within accumulated other comprehensive income (loss) to retained earnings and requires increased disclosures describing the accounting policy used to release the income tax effects from accumulated other comprehensive income (loss), whether the amounts reclassified are the stranded income tax effects from the Tax Cuts and Jobs Act, and information about the other effects on taxes from the reclassification. ASU 2018-02 may be adopted using one of two transition methods: (1) retrospective to each period (or periods) in which the income tax effects of the Tax Cuts and Jobs Act related to items remaining in accumulated other comprehensive income (loss) are recognized, or (2) at the beginning of the period of adoption. The ASU is effective for fiscal years beginning after December 15, 2018, and the quarterly and other interim periods in those years. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of this ASU will have on its consolidated financial statements and related disclosures. In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities," which improves the financial reporting of hedging relationships to better align risk management activities in financial statements and make certain targeted improvements to simplify the application of current hedge accounting guidance in current GAAP. The standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of this ASU will have on its consolidated financial statements and related disclosures. In March 2017, the FASB issued ASU 2017-08, "Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities," which shortens the amortization period for certain callable debt securities held at a premium to the earliest call date. ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of this ASU will have on its consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)," which will supersede the current guidance for lease accounting and will require lessees to recognize the right-of-use assets and lease liabilities, on its balance sheet. ASU 2016-02 requires a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years with early adoption permitted. While the Company is still evaluating the impact this ASU will have on the consolidated financial statements and related disclosures, it has completed the initial impact assessment and the Company has identified an accounting system to support the leasing accounting requirements in connection with the adoption of ASU 2016-02. At this time, the Company is not yet in a position to reasonably estimate the expected increase in assets and liabilities on the consolidated balance sheets upon adoption. The Company expects that the impact of recording the lease liabilities and the corresponding right of use assets will have a significant impact on total assets and liabilities with minimal impact on equity and results of operations. The Company expects expanded financial statement disclosures to present additional details of the Company's leasing arrangements. Recent accounting guidance not discussed above is not applicable, did not have, or is not expected to have a material impact on the Company. |
Acquisitions |
3 Months Ended |
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Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions On April 19, 2018, the Company, through a wholly-owned subsidiary, acquired 100% of the share capital of Avaj International Holding AB ("Avaj") (the “Crem Acquisition”) for aggregate consideration of approximately 1,800 million Swedish Krona ("SEK") or $220.3 million based on the exchange rate in effect on the closing date. The consideration comprised $157.4 million in cash, $2.4 million of interest on such amount for the period from December 31, 2017 to the closing date of the Crem Acquisition and an aggregate $60.5 million for the repayment of certain indebtedness owed under third-party borrowings and shareholder loans. The Crem Acquisition was funded through cash on hand and additional borrowings under existing credit lines. Crem International Holding AB (“Crem”), a wholly-owned subsidiary of Avaj, is a global manufacturer of professional coffee machines headquartered in Solna, Sweden. Crem develops, manufactures and markets a full suite of coffee machines under three brands: Coffee Queen®, Expobar® and Spengler for use in offices, restaurants, cafes and coffee shops, catering and convenience stores. The Crem Acquisition provides the Company with an established presence in hot beverage equipment, a complementary product category, and it expects to realize operational synergies and cross-selling benefits. In addition, the Crem Acquisition supports the Company's strategic objective of increasing its presence in Europe and Asia. During the three months ended March 31, 2018, the Company incurred approximately $1.2 million of professional services and other direct acquisition costs related to the Crem Acquisition that are included in "Selling, general and administrative expenses" in the consolidated statement of operations. In addition, the Company entered into a foreign currency exchange contract for the purchase price exposure of SEK 1,800 million, which incurred a loss of $7.8 million during the three months ended March 31, 2018 and is included in the consolidated statement of operations in "Other expense — net." |
Inventories - Net |
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Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories - Net | Inventories — Net The components of "Inventories — net" at March 31, 2018 and December 31, 2017 are summarized as follows:
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Property, Plant and Equipment - Net |
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Property, Plant and Equipment - Net | Property, Plant and Equipment — Net The components of "Property, plant and equipment — net" at March 31, 2018 and December 31, 2017 are summarized as follows:
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Accounts Payable and Accrued Expenses and Other Liabilities |
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Accounts Payable and Accrued Expenses and Other Liabilities | Accounts Payable and Accrued Expenses and Other Liabilities "Accounts payable" and "Accrued expenses and other liabilities" at March 31, 2018 and December 31, 2017 are summarized as follows:
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Accounts Receivable Securitization |
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Mar. 31, 2018 | |
Transfers and Servicing [Abstract] | |
Accounts Receivable Securitization | Accounts Receivable Securitization The Company participates in a $110.0 million accounts receivable securitization program whereby the Company sells certain of its domestic trade accounts receivable and certain of its non-U.S. trade accounts receivable to a wholly-owned, bankruptcy-remote, foreign special purpose entity, which in turn, sells, conveys, transfers and assigns to a third-party financial institution (the “Purchaser”), all of the rights, title and interest in and to its pool of receivables. Under this program, the Company generally receives cash consideration up to a certain limit and records a non-cash exchange for sold receivables for the remainder of the purchase price ("deferred purchase price"). The sale of these receivables qualifies for sale accounting treatment. The Company maintains a "beneficial interest," or right to collect cash, in the sold receivables. Cash receipts from the Purchaser at the time of the sale are classified as operating cash while cash receipts from the beneficial interest on sold receivables are classified as investing activities on the consolidated statements of cash flows. The Company, along with certain of its subsidiaries, act as servicers of the sold receivables. The servicers administer, collect and otherwise enforce these receivables and are compensated for doing so on terms that are generally consistent with what would be charged by an unrelated servicer. The servicers initially receive payments made by obligors on the receivables but are required to remit those payments in accordance with the receivables purchase agreement. Upon termination of the program, the Purchaser will have no recourse for uncollectible receivables. The securitization program also contains customary affirmative and negative covenants. Among other restrictions, these covenants require the Company to meet specified financial tests, which include a Consolidated Interest Coverage Ratio and a Consolidated Total Leverage Ratio that are the same as the covenant ratios required under the 2016 Credit Agreement. The accounts receivable securitization program was amended on February 2, 2018 in conjunction with an amendment to the 2016 Credit Agreement to provide for certain conforming changes including amending the Consolidated Total Leverage Ratio required thereunder. See Note 8, "Debt" for additional details of the 2016 Credit Agreement and related amendments. Due to a short average collection cycle of less than 60 days for such accounts receivable as well as the Company's collection history, the fair value of its beneficial interest in the sold receivables approximates book value and, as of March 31, 2018 and December 31, 2017, totaled $70.9 million and $62.9 million, respectively and is recorded in "Accounts receivable, less allowance" in the consolidated balance sheets. The Company deems the interest rate risk related to this beneficial interest to be de minimis, primarily due to the short average collection cycle of the related receivables. The carrying value of trade receivables removed from the Company's consolidated balance sheets in connection with the accounts receivable securitization program was $88.0 million and $99.5 million at March 31, 2018 and December 31, 2017, respectively. |
Debt |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Outstanding debt at March 31, 2018 and December 31, 2017 is summarized as follows:
(1) Total outstanding debt issuance costs, net of amortization as of March 31, 2018 and December 31, 2017 was $27.4 million and $28.6 million, respectively, of which $2.2 million at each date was related to the revolving credit facility and recorded in "Other non-current assets" in the consolidated balance sheets. (2) Represents the change in fair value due to changes in benchmark interest rates related to the Company's 9.50% Senior Notes due 2024 ("Senior Notes"). Refer to Note 9, "Derivative Financial Instruments," for additional information on the Company's interest rate swap designated as a fair value hedge. On March 3, 2016, the Company entered into a credit agreement (as amended, restated, supplemented or otherwise modified from time to time the "2016 Credit Agreement") for a $1,200.0 million senior secured credit facility consisting of (i) a senior secured revolving credit facility in an aggregate principal amount of $225.0 million (the "Revolving Facility") and (ii) a senior secured Term Loan B facility in an aggregate principal amount of $975.0 million (the "Term Loan B Facility" and, together with the Revolving Facility, the "Senior Secured Credit Facilities") with JPMorgan Chase Bank, N.A., as administrative agent and collateral agent, J.P. Morgan Securities LLC, Goldman Sachs Bank USA, HSBC Securities (USA) Inc., and Citigroup Global Markets Inc., on behalf of certain of its affiliates, as joint lead arrangers and joint bookrunners, and certain lenders, as lenders. The Revolving Facility includes (i) a $20.0 million sublimit for the issuance of letters of credit on customary terms, and (ii) a $40.0 million sublimit for swingline loans on customary terms. The Company entered into security and other agreements relating to the 2016 Credit Agreement. During the first quarter of 2017, the Company recorded an out-of-period adjustment of $2.7 million to correct for the loss incurred on the prepayments made in 2016 on the Term Loan B Facility related to unamortized debt issuance costs, which is included in "Loss on early extinguishment of debt" in the consolidated statement of operations. The related income tax benefit of $1.0 million was recognized in "Income taxes" in the consolidated statement of operations. Management determined the error correction was not material to the periods of origination nor the period of correction. In February 2018, the Company entered into an amendment to the 2016 Credit Agreement, which increased the Consolidated Total Leverage Ratio for each of the quarters ended December 31, 2017, March 31, 2018 and June 30, 2018 to 5.25:1.00. The required ratio level will then reduce 0.25 each subsequent quarter until the ratio reaches 4.00:1.00 in the quarter ending September 30, 2019. In April 2018, the Company entered into an Incremental Revolving Facility Amendment to the 2016 Credit Agreement whereby the aggregate revolving commitments were increased by $50.0 million to $275.0 million. As of March 31, 2018, the Company had $80.0 million of borrowings outstanding under the Revolving Facility, $3.3 million in outstanding stand-by letters of credit and $141.7 million in available borrowings. During the three months ended March 31, 2018, the highest daily borrowing was $95.0 million and the average borrowing was $70.0 million, while the weighted average interest rate was 4.8% per annum. The interest rate fluctuates based upon LIBOR or an alternate base rate plus a spread, which is based upon the Consolidated Total Leverage Ratio of the Company. As of March 31, 2018, the spreads for LIBOR and alternate base rate borrowings were 2.25% and 1.25%, respectively, given the Company's effective Consolidated Total Leverage Ratio. The interest rate on the Term Loan B Facility also fluctuates based on LIBOR or a Prime rate plus a spread. At March 31, 2018, this facility bore interest at a rate per annum equal to, at the option of the Company, LIBOR plus an applicable margin of 2.75% for term loans subject to a 1.00% LIBOR floor, or an alternate base rate plus the applicable margin, that will be 1.00% lower than for LIBOR loans. The weighted average interest rate for the Term Loan B Facility was 4.9% per annum. The 2016 Credit Agreement contains financial covenants including (a) a Consolidated Interest Coverage Ratio, which measures the ratio of (i) Consolidated EBITDA, to (ii) Consolidated Cash Interest Expense, and (b) a Consolidated Total Leverage Ratio, which measures the ratio of (i) Consolidated Indebtedness to (ii) Consolidated EBITDA for the most recent four quarters, in each case, as defined in the 2016 Credit Agreement. The current covenant levels of the financial covenants under the Senior Secured Credit Facilities are set forth below:
As of March 31, 2018 the Company was in compliance with all affirmative and negative covenants in its debt instruments, inclusive of the financial covenants pertaining to the 2016 Credit Agreement and the Senior Notes. As of March 31, 2018, borrowings under the Senior Notes totaled $425.0 million with a weighted average interest rate of 9.90% per annum. As of March 31, 2018, the Company had outstanding $2.6 million of capital lease indebtedness that had a weighted-average interest rate for the three months ended March 31, 2018 of approximately 4.16% per annum. |
Derivative Financial Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments The Company's risk management objective is to ensure that business exposures to risks that have been identified and measured and are capable of being controlled are minimized or managed using what it believes to be the most effective and efficient methods to eliminate, reduce or transfer such exposures. Operating decisions consider these associated risks and the Company structures transactions to minimize or manage these risks whenever possible. The primary risks the Company manages using derivative instruments are interest rate risk, commodity price risk and foreign currency exchange risk. Interest rate swaps are entered into to manage interest rate risk associated with the Company’s fixed and floating-rate borrowings. Cross-currency interest rate swaps are entered into to protect the value of the Company’s investments in its foreign subsidiaries. Swap contracts on various commodities are used to manage the price risk associated with forecasted purchases of materials used in the Company's manufacturing process. The Company also enters into various foreign currency derivative instruments to help manage foreign currency risk associated with its projected purchases and sales and foreign currency denominated receivable and payable balances. The Company recognizes all derivative instruments as either assets or liabilities at fair value in the consolidated balance sheets. Commodity swaps and foreign currency exchange contracts are designated as cash flow hedges of forecasted purchases of commodities and currencies, certain interest rate swaps as cash flow hedges of floating-rate borrowings, and the remainder as fair value hedges of fixed-rate borrowings, and certain cross-currency interest rate swaps as hedges of net investments in its foreign subsidiaries. Cash flow hedging strategy For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of "Accumulated other comprehensive loss" and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative instruments representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. In the next twelve months, the Company estimates $1.9 million of unrealized gains, net of tax, related to currency rate and commodity price hedging will be reclassified from "Accumulated other comprehensive loss" into earnings. Foreign currency and commodity hedging is generally completed prospectively on a rolling basis for 15 and 36 months, respectively, depending on the type of risk being hedged. During the first quarter of 2017, the Company entered into two interest rate swap agreements with a total notional amount of $600.0 million to manage interest rate risk exposure by converting the Company’s floating-rate debt to a fixed-rate basis, thus reducing the impact from fluctuations in interest rates on future interest expense. These agreements involve the receipt of floating rate amounts in exchange for fixed rate interest payments over the life of the agreements without an exchange of the underlying principal and have termination dates of March 2019 for $175.0 million notional amount and March 2020 for the remaining $425.0 million notional amount. Approximately 45.5% of the Company’s total outstanding debt had its interest payments designated as cash flow hedges under these interest rate swap agreements as of March 31, 2018. As of March 31, 2018, the total notional amount of the Company’s receive-variable/pay-fixed interest rate swaps was $600.0 million. As of March 31, 2018 and December 31, 2017, the Company had the following outstanding commodity and currency forward contracts that were entered into as hedges of forecasted transactions:
The effects of derivative instruments on the consolidated statements of comprehensive income and consolidated statements of operations for the three months ended March 31, 2018 and 2017 for gains or losses initially recognized in "Accumulated other comprehensive loss" ("AOCI") in the consolidated balance sheets were as follows:
Fair value hedging strategy For derivative instruments that are designated and qualify as a fair value hedge (i.e., hedging the exposure to changes in the fair value of an asset or a liability or an identified portion thereof that is attributable to a particular risk), the gain or loss on the derivative instrument as well as the offsetting gain or loss on the hedged item attributable to the hedged risk are recognized in the same line item associated with the hedged item in current earnings. During the first quarter of 2017, the Company entered into an interest rate swap agreement with a total notional amount of $425 million to manage interest rate risk exposure by converting the Company’s fixed-rate debt to a floating-rate basis. This agreement involved the receipt of fixed rate amounts in exchange for floating rate interest payments over the life of the agreement without an exchange of the underlying principal. In June 2017, this interest rate swap agreement was terminated and the Company received $7.7 million, the fair value of the swap including accrued interest. Accordingly, hedge accounting was discontinued and the hedge accounting adjustment to the Company's Senior Notes of $0.3 million will be amortized to "Interest expense" in the consolidated statements of operations through February 2024. On October 3, 2017, the Company entered into an interest rate swap agreement with a total notional amount of $425.0 million to manage interest rate risk exposure by converting the Company’s fixed-rate debt to a floating-rate basis. This agreement involves the receipt of fixed rate amounts in exchange for floating rate interest payments over the life of the agreement without an exchange of the underlying principal and terminates in February 2024. Approximately 32.2% of the Company’s total outstanding debt had its interest payments designated as a fair value hedge under this interest rate swap agreement as of March 31, 2018. The gain or loss on the hedged items (that is, fixed-rate borrowing of the Senior Notes) attributable to the hedged benchmark interest rate risk (risk of changes in the applicable LIBOR swap rate) and the offsetting gain or loss on the related interest rate swap is as follows:
The difference of $0.3 million represents hedge ineffectiveness for the three months ended March 31, 2018. There was no hedge ineffectiveness recorded for the same period in 2017. The net swap settlements that accrue each period are reported in "Interest expense" in the consolidated statements of operations. As of March 31, 2018, the total notional amount of the Company’s receive-fixed/pay-variable interest rate swap was $425.0 million. Hedge of net investment in foreign operations strategy For derivative instruments that are designated and qualify as a hedge of a net investment in a foreign currency, the gain or loss is reported in AOCI as part of the cumulative translation adjustment to the extent it is effective. Any ineffective portions of net investment hedges are recognized in earnings during the period of change. During the first quarter of 2017, the Company entered into a three-year cross-currency interest rate swap contract for a notional value of €50.0 million to protect the value of its net investment in Euros. The carrying value of the net investment in Euros that is designated as a hedging instrument is remeasured at each reporting date to reflect the changes in the foreign currency exchange spot rate, with changes since the last remeasurement date recorded in "Accumulated other comprehensive loss." The Company uses the forward-rate method of assessing hedge effectiveness when cross-currency swap contracts are designated as hedging instruments. At March 31, 2018, the total notional amount of cross-currency interest rate swap contract designated in net investment hedges was €50.0 million. The effects of derivative instruments on the consolidated statements of comprehensive income and consolidated statements of operations for the three months ended March 31, 2018 and 2017 for gains or losses initially recognized in AOCI in the consolidated balance sheets were as follows:
Derivatives Not Designated as Hedging Instruments The Company enters into foreign currency exchange contracts that are not designated as hedge relationships to offset, in part, the impact of certain intercompany transactions and to further mitigate certain other short-term currency impacts as identified. For derivative instruments that are not designated as hedging instruments, the gains or losses on the derivatives are recognized in current earnings within "Other expense — net" in the consolidated statements of operations. During the first quarter of 2018, the Company entered into a short-term foreign currency exchange contract to purchase SEK 1,800.0 million and sell $223.8 million with maturity dates ranging from March 1, 2018 to April 5, 2018 ("SEK Contract"). The purpose of this contract was to mitigate the impact of currency price fluctuations on the contracted price of the Crem Acquisition (see Note 3, "Acquisitions" for additional discussion of the Crem Acquisition). As of March 31, 2018, the SEK Contract was in a short-term liability position of $7.8 million and was included in "Accrued expenses and other liabilities" in the consolidated balance sheet. In April 2018, the Company settled the SEK Contract and realized a loss of $10.0 million. The incremental loss of $2.2 million will be recognized in the second quarter of 2018. As of March 31, 2018 and December 31, 2017, the Company had the following outstanding currency forward contracts that were not designated as hedging instruments:
The fair value of outstanding derivative contracts recorded as assets in the consolidated balance sheets as of March 31, 2018 and December 31, 2017 was as follows:
The fair value of outstanding derivative contracts recorded as liabilities in the consolidated balance sheets as of March 31, 2018 and December 31, 2017 was as follows:
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Fair Value of Financial Instruments |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments In accordance with the Company's policy, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The policy classifies the inputs used to measure fair value into the following hierarchy:
Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or Inputs other than quoted prices that are observable for the asset or liability
The Company endeavors to utilize the best available information in measuring fair value. The Company estimates the fair value of its Senior Notes and Term Loan B Facility based on quoted market prices of the instruments. Because these markets are typically thinly traded, the assets and liabilities are classified as Level 2 of the fair value hierarchy. The carrying values of cash and cash equivalents, accounts receivable, accounts payable and beneficial interest in sold receivables (see Note 7, "Accounts Receivable Securitization"), approximate fair value, without being discounted as of March 31, 2018 and December 31, 2017 due to the short-term nature of these instruments. The fair value of the Company's Senior Notes was approximately $474.4 million and $483.8 million as of March 31, 2018 and December 31, 2017, respectively. The fair value of the Company's Term Loan B Facility was approximately $821.6 million and $818.1 million as of March 31, 2018 and December 31, 2017, respectively. The related carrying values are disclosed in Note 8, "Debt." The following tables set forth financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2018 and December 31, 2017 by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
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Income Taxes |
3 Months Ended |
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Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three months ended March 31, 2018, the Company recorded a $0.3 million income tax provision, reflecting a 2.3% effective tax rate, which was inclusive of a $3.7 million discrete tax benefit. The $3.7 million discrete tax benefit primarily consisted of tax balances that were adjusted upon filing the Company’s U.S. federal and state corporate income tax returns for 2016 that were timely filed in the first quarter of 2018. For the three months ended March 31, 2017, the Company recorded a $2.1 million income tax provision, reflecting a 29.6% effective tax rate. The $2.1 million income tax provision included a $1.0 million income tax benefit recognized as a discrete item related to the $2.7 million out-of-period adjustment for unamortized debt issuance costs for the Term Loan B Facility. The decrease in the Company's effective tax rate for the three months ended March 31, 2018, relative to the three months ended March 31, 2017, was primarily due to the reduction in the U.S. federal statutory rate to 21.0% for 2018 as compared to 35.0% for 2017 and an increase in discrete tax benefits. The Company’s effective tax rate for the three months ended March 31, 2018 varies from the 21.0% U.S. federal statutory rate primarily due to the discrete tax benefit, the Tax Cuts and Jobs Act (the “Tax Act”), relative weighting of foreign earnings before income taxes and taxes on foreign income. The Company’s effective tax rate for the three months ended March 31, 2017 varies from the 35.0% U.S. federal statutory rate due to the discrete tax benefit, relative weighting of foreign earnings before income taxes and taxes on foreign income. Foreign earnings are generated from operations in the Company’s three reportable segments of Americas, EMEA and APAC. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Act. The SEC staff issued Staff Accounting Bulletin (“SAB”) No. 118, which provided guidance for the tax effects of items enacted in December 2017, providing a measurement period not extending beyond one year from the Tax Act enactment date. There were no changes for the three months ended March 31, 2018 related to the provisional estimates recorded in the Company’s consolidated financial statements for the year ended December 31, 2017. The Tax Act included a new provision, effective in 2018, designated as global intangible low-taxed income (“GILTI”). The Company is allowed to make an accounting policy election of either (1) treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred (the “period cost method”) or (2) factoring such amounts into the measurement of deferred taxes (the “deferred method”). The Company has adopted the period cost method for the GILTI computation and, accordingly, deferred taxes will not be recorded for GILTI. The Tax Act also included other provisions effective in 2018, designated as (1) foreign derived intangible income (“FDII”), (2) interest disallowance and (3) base erosion anti-abuse tax (“BEAT”), that were calculated, as relevant, for computation of the income tax provision for the three months ended March 31, 2018. As of each reporting date, the Company’s management considers new evidence, both positive and negative, that could impact management’s view regarding future realization of deferred tax assets. The Company will continue to periodically evaluate its valuation allowance requirements in light of changing facts and circumstances, and may adjust its deferred tax asset valuation allowances accordingly. It is reasonably possible that the Company will either add to, or reverse a portion of its existing deferred tax asset valuation allowances in the future. Such changes in the deferred tax asset valuation allowances will be reflected in current operations through the Company’s income tax provision, and could have a material effect on operating results. The Company's unrecognized tax benefits, including interest and penalties, were $12.5 million as of March 31, 2018, and December 31, 2017, respectively. During the next twelve months, it is reasonably possible that federal, state and foreign tax resolutions could change unrecognized tax benefits and income tax expense in the range of $0.1 million to $0.5 million. The Company regularly assesses the likelihood of an adverse outcome resulting from examinations to determine the adequacy of its tax reserves. As of March 31, 2018, the Company believes that it is more likely than not that the tax positions it has taken will be sustained upon the resolution of its audits resulting in no material impact on its consolidated financial position and the results of operations and cash flows. However, the final determination with respect to any tax audits, and any related litigation, could be materially different from the Company's estimates and/or from its historical income tax provisions and accruals and could have a material effect on operating results and/or cash flows in the periods for which that determination is made. In addition, future period earnings may be adversely impacted by litigation costs, settlements, penalties, and/or interest assessments. |
Accumulated Other Comprehensive Loss |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The components of "Accumulated other comprehensive loss" as of March 31, 2018 and December 31, 2017 are as follows:
A summary of the changes in "Accumulated other comprehensive loss," net of tax, by component for the three months ended March 31, 2018 and 2017 are as follows:
A reconciliation of the reclassifications out of accumulated other comprehensive income (loss), net of tax, for the three months ended March 31, 2018 and 2017:
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Contingencies and Significant Estimates |
3 Months Ended |
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Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Significant Estimates | Contingencies and Significant Estimates As of March 31, 2018 and December 31, 2017, the Company held reserves for environmental matters related to certain locations of approximately $0.8 million. At certain of the Company's other facilities, it has identified potential contaminants in soil and groundwater. The ultimate cost of any remediation required will depend upon the results of future investigation and is not reasonably estimable. Based upon available information, the Company does not expect the ultimate costs at any of these locations will have a material adverse effect on its financial condition, results of operations or cash flows individually or in the aggregate. The Company believes that it has obtained and is in substantial compliance with those material environmental permits and approvals necessary to conduct its various businesses. Based on the facts presently known, the Company does not expect environmental compliance costs to have a material adverse effect on its financial condition, results of operations or cash flows. As of March 31, 2018, various product-related lawsuits were pending. To the extent permitted under applicable law, all of these are insured with self-insurance retention levels. The Company's self-insurance retention levels vary by business, and have fluctuated over the last 10 years. The current range of the Company's self-insured retention levels is $0.1 million to $0.3 million per occurrence and $1.3 million in the aggregate. As of March 31, 2018, the largest self-insured retention level for new occurrences currently maintained by the Company was $0.3 million per occurrence and applied to product liability claims for the hot category products manufactured in the United States. Product liability reserves are included in "Accrued expenses and other liabilities" in the consolidated balance sheets at March 31, 2018 and December 31, 2017 and were $1.5 million and $1.4 million, respectively; $0.4 million and $0.4 million, respectively, was reserved specifically for actual cases, and $1.1 million and $1.0 million, respectively, for claims incurred but not reported, which were estimated using actuarial methods. Based on the Company's experience in defending product liability claims, management believes the current reserves are adequate for estimated case resolutions on aggregate self-insured claims and insured claims. Any recoveries from insurance carriers are dependent upon the legal sufficiency of claims and solvency of insurance carriers. At March 31, 2018 and December 31, 2017, the Company had reserved $26.2 million and $24.1 million, respectively, for warranty claims expected to be paid out within a year or less, which are included in "Product warranties" in the consolidated balance sheets. At March 31, 2018 and December 31, 2017, the Company had reserved $11.4 million and $11.9 million, respectively, for warranty claims expected to be paid out after a year, which are included in "Other long-term liabilities" in the consolidated balance sheets. Certain of these warranty and other related claims involve matters in dispute that ultimately are resolved by negotiations, arbitration or litigation. See Note 14, “Product Warranties,” for further information. It is reasonably possible that the estimates for environmental remediation, product liability and warranty costs may change in the near future based upon new information that may arise or matters that are beyond the scope of the Company's historical experience. Presently, there are no reliable methods to estimate the amount of any such potential changes. The Company is also subject to litigation claims arising in the ordinary course of business. The Company believes that it has adequately accrued for legal matters as appropriate. The Company records litigation accruals for legal matters which are both probable and estimable and for related legal costs as incurred. In the opinion of management, the ultimate resolution of all current litigation matters is not expected to have, individually or in the aggregate, a material adverse effect on the Company's financial condition, results of operations or cash flows. |
Product Warranties |
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Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||
Guarantees [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Product Warranties | Product Warranties In the normal course of business, the Company provides its customers product warranties covering workmanship, and in some cases materials, on products manufactured by the Company. Such product warranties generally provide that products will be free from defects for periods ranging from 12 months to 60 months with certain equipment having longer-term warranties. If a product fails to comply with the Company's warranty, the Company may be obligated, at its expense, to correct any defect by repairing or replacing such defective products. The Company provides for an estimate of costs that may be incurred under its warranty at the time product revenue is recognized. These costs primarily include labor and materials, as necessary, associated with repair or replacement. The primary factors that affect its warranty liability include the number of units shipped and historical and anticipated warranty claims. As these factors are impacted by actual experience and future expectations, the Company assesses the adequacy of its recorded warranty liability and adjusts the amounts as necessary. Below is a table summarizing the product warranty activity for the three months ended March 31, 2018:
(1) Long-term warranty liabilities are included in "Other long-term liabilities" and totaled $11.4 million and $11.9 million at March 31, 2018 and December 31, 2017, respectively. The Company also offers extended warranties, which are recorded as deferred revenue and are amortized to "Net sales" on a straight-line basis over a period equal to that of the warranty period. The short-term portion of deferred revenue on warranties included in "Accrued expenses and other liabilities" in the consolidated balance sheets at March 31, 2018 and December 31, 2017 was $3.1 million and $3.1 million, respectively. The long-term portion of deferred revenue on warranties included in "Other long-term liabilities" in the consolidated balance sheets at March 31, 2018 and December 31, 2017 was $3.4 million and $3.6 million, respectively. |
Restructuring |
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Mar. 31, 2018 | ||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||
Restructuring | Restructuring The Company periodically takes action to improve operating efficiencies, typically in connection with recognizing cost synergies and rationalizing the cost structure of the Company. The Company's footprint and headcount reductions and organizational integration actions relate to discrete, unique restructuring events, primarily reflected in the approved plans for reduction in force ("RIF"). The following is a rollforward of all restructuring activities for the three months ended March 31, 2018:
As of March 31, 2018 and December 31, 2017, the short-term portion of the liability of $3.4 million and $5.0 million, respectively, was reflected in "Accrued expenses and other liabilities" in the consolidated balance sheet. The long-term portion of the liability of $10.8 million and $11.1 million as of March 31, 2018 and December 31, 2017, respectively, was reflected in "Other long-term liabilities" in the consolidated balance sheets and relates to the long-term portion of the pension withdrawal obligation incurred in connection with the reorganization and plant restructuring of the Company's former Lincoln Foodservice operations. Effective January 2, 2017, Maurice Jones, the Company's former Senior Vice President, General Counsel and Secretary, retired from the Company and pursuant to the terms of his employment agreement, the Company is required to provide severance and other related benefits over the subsequent 18-month period. The Company incurred a total one-time cost of $2.2 million, including $1.1 million of additional stock-based compensation expense resulting from the accelerated vesting of certain restricted stock units and stock options, that was recorded during the first quarter of 2017 in "Restructuring expense" in the consolidated statement of operations. Mr. Jones will also receive the amount of vested benefits of $2.5 million plus interest at the rate of 9.0% from the Company’s Supplemental Executive Retirement Plan (“SERP”) that will be paid over five annual installments. Effective May 5, 2017, John Stewart, the Company's Senior Vice President and Chief Financial Officer, retired from the Company. Pursuant to the terms of his employment agreement, the Company is required to provide severance and other related benefits over the next 12-month period. The Company incurred a total one-time cost of $2.5 million, including $1.5 million of additional stock-based compensation resulting from the accelerated vesting of certain restricted stock units and stock options. Of this amount, $1.5 million and $1.0 million were recognized during the first and second quarters of 2017, respectively, in "Restructuring expense" in the consolidated statements of operations. The Company completed a limited management restructuring within its EMEA region in March 2018. In connection with this action, the Company incurred severance and related costs of $0.4 million, which was recognized during the first quarter of 2018 in "Restructuring expense" in the consolidated statements of operations. |
Employee Benefit Plans |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit Plans | Employee Benefit Plans The components of periodic benefit costs for the defined benefit plans for the three months ended March 31, 2018 and 2017 were as follows:
The components of periodic benefit costs are recorded in "Other expense — net" in the consolidated statements of operations. |
Business Segments |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segments | Business Segments The Company identifies its segments using the “management approach,” which designates the internal organization that is used by management for making operating decisions and assessing performance as the source of the Company's reportable segments. Management organizes the business based on geography, and has designated the regions Americas, EMEA, and APAC as reportable segments. The accounting policies of the Company's reportable segments are the same as those described in the summary of accounting policies in Note 2, "Summary of Significant Accounting Policies and Basis of Presentation," except that certain corporate-level expenses are not allocated to the segments. These unallocated expenses include corporate overhead, stock-based compensation expense, amortization expense of intangible assets with definite lives, separation expense, restructuring expense and other non-operating expenses. The Company evaluates segment performance based upon earnings before interest, taxes, other expense — net, depreciation and amortization expense and is adjusted for certain other non-cash or non-recurring items, including gain or loss from impairment or disposal of assets, restructuring expense, separation expense, loss on early extinguishment of debt and acquisition-related transaction costs ("Adjusted Operating EBITDA"). Adjusted Operating EBITDA is a non-GAAP measure, and the Company's presentation of Adjusted Operating EBITDA may not be comparable to similar measures used by other companies. Financial information relating to the Company's reportable segments for the three months ended March 31, 2018 and 2017 respectively is as follows:
As of March 31, 2018 and December 31, 2017, total assets by reportable segment are as follows:
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share The Company computes basic earnings per share based on the weighted average number of common shares that were outstanding during the period. Diluted earnings per share includes the dilutive effect of common stock equivalents consisting of stock options, restricted stock awards, restricted stock units and performance share units, using the treasury stock method. Performance share units are considered dilutive when the related performance criterion has been met. The following is a reconciliation of the weighted average shares outstanding used to compute basic and diluted earnings per share:
Dilutive securities outstanding, not included in the computation of earnings of share because their effect was antidilutive, for the three months ended March 31, 2018, and 2017 totaled 1.6 million and 1.1 million, respectively. |
Subsidiary Guarantors of Senior Notes due 2024 |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subsidiary Guarantors of Senior Notes due 2024 | Subsidiary Guarantors of Senior Notes The following tables present consolidating financial information for (a) Welbilt; (b) the guarantors of the Senior Notes, which include substantially all of the domestic, 100% owned subsidiaries of Welbilt ("Guarantor Subsidiaries"); and (c) the wholly owned foreign subsidiaries of Welbilt, which do not guarantee the Senior Notes ("Non-Guarantor Subsidiaries"). The information includes elimination entries necessary to consolidate the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries. Investments in subsidiaries are accounted for using the equity method of accounting. The principal elimination entries eliminate investments in subsidiaries, equity and intercompany balances and transactions. Separate financial statements of the Guarantor Subsidiaries are not presented because the guarantors are fully and unconditionally, jointly and severally liable under the guarantees, except for normal and customary release provisions. WELBILT, INC. Consolidating Statement of Operations (Unaudited)
WELBILT, INC. Consolidating Statement of Operations (Unaudited)
WELBILT, INC. Consolidating Balance Sheet (Unaudited)
WELBILT, INC. Consolidating Balance Sheet (Audited)
WELBILT, INC. Consolidating Statement of Cash Flows (Unaudited)
WELBILT, INC. Consolidating Statement of Cash Flows (Unaudited)
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Summary of Significant Accounting Policies and Basis of Presentation (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principles of Consolidation and Basis of Presentation | The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). All intercompany balances and transactions between the Company and its affiliates have been eliminated. |
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Use of Estimates | The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. Significant items subject to such estimates and assumptions include inventory obsolescence costs, warranty costs, product liability costs, employee benefit programs and the measurement of income tax assets and liabilities. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. On an ongoing basis, the Company evaluates these assumptions, judgments and estimates. Actual results may differ from these estimates. |
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Reclassifications | Certain prior period amounts have been reclassified to conform to the current period presentation |
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Recently Adopted Accounting Pronouncements | In May 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-09, "Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting," which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting pursuant to Topic 718. ASU 2017-09 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted. The amendments in this update are required to be applied prospectively to an award modified on or after the adoption date. This standard became effective for the Company on January 1, 2018. The impact this standard will have on the Company's consolidated financial statements and related disclosures will be dependent on the terms and conditions of any modifications made to share-based awards after January 1, 2018. In March 2017, the FASB issued ASU 2017-07, "Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost," which requires the employer to disaggregate the service cost component from the other components of net benefit cost. The ASU also provides explicit guidance on how to present the service cost component and the other components of net benefit cost in the income statement and allows only the service cost component of net benefit cost to be eligible for capitalization. As of January 1, 2018, the Company adopted this standard on a retrospective basis. Prior to adoption, periodic benefit costs for both pensions and postretirement benefits were recorded in "Selling, general and administrative expenses" in the consolidated statement of operations. As a result of adopting this ASU, the Company recognized $0.4 million of periodic pension costs and $0.1 million of periodic postretirement benefit costs in "Other expense — net" in the consolidated statement of operations for the three months ended March 31, 2018. See Note 16, "Employee Benefit Plans" for further information. In November 2016, the FASB issued ASU 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash," which requires an entity to reconcile the changes in restricted cash as part of total cash and cash equivalents in its statements of cash flows. This standard became effective for the Company on January 1, 2018. The adoption of this standard was applied retrospectively. Other than the change in presentation of restricted cash within the consolidated statements of cash flows, the adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory," which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. ASU 2016-16 became effective for the Company on January 1, 2018. Currently the Company does not have material intercompany transactions of non-inventory items, but to the extent that these business circumstances change in the future, there could be income tax impacts. In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments," which clarifies the accounting guidance on how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This standard became effective for the Company on January 1, 2018. The adoption of this standard impacts the presentation of collections of the deferred purchase price from its sales of trade accounts receivables in the Company’s consolidated statements of cash flows. Subsequent to adoption, collection of these balances is reported in cash flows from investing activities rather than cash flows from operating activities with all retrospective periods reclassified to conform for comparability. In addition, the beneficial interest obtained in exchange for securitized receivables are reported as non-cash investing activity. See Note 7, "Accounts Receivable Securitization" for further discussion. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)" with additional updates subsequently issued (collectively, "ASU 2014-09"). This ASU creates a single, comprehensive revenue recognition model for all contracts with customers. The model is based on changes in contract assets (rights to receive consideration) and liabilities (obligations to provide a good or service). On January 1, 2018, the Company adopted ASU 2014-09. Either a retrospective or cumulative effect transition method, referred to as the modified retrospective method, is permitted. The Company used the modified retrospective method and recognized the cumulative effect of the initial application of the new revenue standard as an adjustment to the opening balance of retained earnings. Prior period results have not been restated and continue to be reported under the accounting standards in effect for those periods. In connection with the adoption of this guidance, the Company elected the following practical expedients: (i) significant financing component, (ii) sales taxes, (iii) costs of obtaining a contract, (iv) shipping and handling activities and (v) immaterial promised goods or services. The adoption of ASU 2014-09 did not have a material impact on the Company's consolidated balance sheet as of March 31, 2018 or the consolidated statement of operations or cash flows for the three months ended March 31, 2018. Subsequent to the adoption of ASU 2014-09, revenue is recognized based on the satisfaction of performance obligations, which occurs when control of a good or service transfers to a customer. A majority of the Company's net sales continue to be recognized when products are shipped from its manufacturing facilities. The cumulative effect of the changes made to the Company's consolidated balance sheet as of January 1, 2018 for the adoption of ASU 2014-09 is related to the establishment of right to return assets in conjunction with its product return policy as shown below:
Substantially all of the Company's revenues comprise revenues from contracts with customers. These revenues are disaggregated by major source and geographic location, as the Company believes it best depicts how the nature, amount, timing and uncertainty of its revenue and cash flows are affected by economic factors. Net sales by product class and segment are as follows:
For the majority of foodservice equipment and aftermarket parts and support, the transfer of control and revenue recognition materializes when the products are shipped from the manufacturing facility or the service is provided to the customer. The Company typically invoices its customers with payment terms of 30 days and our average collection cycle is generally less than 60 days. The amount of consideration received and revenue recognized varies with marketing incentives such as annual customer rebate programs and returns that are offered to customers. Variable consideration as a result of customer rebate programs are typically based on calendar-year purchases, and are determined using the expected value method in interim periods as prescribed in the guidance. Customers have the right to return eligible equipment and parts. The expected returns are based on an analysis of historical experience. The estimate of revenue is adjusted at the earlier of when the most likely amount of the expected consideration changes or when the consideration becomes fixed. The impact of such adjustments was not material in the three months ended March 31, 2018. The Company also recognizes revenue for foodservice-based projects. Revenues are recognized either at the point-in-time in which control transfers to the customer and all other recognition criteria have been met or over-time as services are provided to the customer, depending on the nature of the performance obligations in each contract. The Company sells separately-priced extended warranties that extend coverage beyond the standard product warranty by 12 to 60 months. Payments are at the inception of the contract and revenue is recognized over the term of the agreement on a straight-line basis, which the Company believes approximates the timing of costs expected to be incurred in satisfying the obligations of the contract. As of March 31, 2018 and December 31, 2017, there was $6.5 million and $6.7 million, respectively, of deferred revenues related to extended warranties. The Company expects to recognize $3.3 million of the deferred revenues in 2018, of which $0.4 million was recognized in the first quarter of 2018, $1.4 million in 2019, and $2.2 million thereafter. See additional discussion of product warranties in Note 14, "Product Warranties." Recent Accounting Pronouncements Not Yet Adopted In February 2018, the FASB issued ASU 2018-02, "Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income," to provide guidance on the presentation of certain income statement effects from the Tax Cuts and Jobs Act’s reduction in the corporate statutory tax rate. The ASU provides the option of reclassifying what are called the “stranded” tax effects within accumulated other comprehensive income (loss) to retained earnings and requires increased disclosures describing the accounting policy used to release the income tax effects from accumulated other comprehensive income (loss), whether the amounts reclassified are the stranded income tax effects from the Tax Cuts and Jobs Act, and information about the other effects on taxes from the reclassification. ASU 2018-02 may be adopted using one of two transition methods: (1) retrospective to each period (or periods) in which the income tax effects of the Tax Cuts and Jobs Act related to items remaining in accumulated other comprehensive income (loss) are recognized, or (2) at the beginning of the period of adoption. The ASU is effective for fiscal years beginning after December 15, 2018, and the quarterly and other interim periods in those years. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of this ASU will have on its consolidated financial statements and related disclosures. In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities," which improves the financial reporting of hedging relationships to better align risk management activities in financial statements and make certain targeted improvements to simplify the application of current hedge accounting guidance in current GAAP. The standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of this ASU will have on its consolidated financial statements and related disclosures. In March 2017, the FASB issued ASU 2017-08, "Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities," which shortens the amortization period for certain callable debt securities held at a premium to the earliest call date. ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of this ASU will have on its consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)," which will supersede the current guidance for lease accounting and will require lessees to recognize the right-of-use assets and lease liabilities, on its balance sheet. ASU 2016-02 requires a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years with early adoption permitted. While the Company is still evaluating the impact this ASU will have on the consolidated financial statements and related disclosures, it has completed the initial impact assessment and the Company has identified an accounting system to support the leasing accounting requirements in connection with the adoption of ASU 2016-02. At this time, the Company is not yet in a position to reasonably estimate the expected increase in assets and liabilities on the consolidated balance sheets upon adoption. The Company expects that the impact of recording the lease liabilities and the corresponding right of use assets will have a significant impact on total assets and liabilities with minimal impact on equity and results of operations. The Company expects expanded financial statement disclosures to present additional details of the Company's leasing arrangements. Recent accounting guidance not discussed above is not applicable, did not have, or is not expected to have a material impact on the Company. |
Summary of Significant Accounting Policies and Basis of Presentation (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cumulative Effect of New Accounting Pronouncement | The cumulative effect of the changes made to the Company's consolidated balance sheet as of January 1, 2018 for the adoption of ASU 2014-09 is related to the establishment of right to return assets in conjunction with its product return policy as shown below:
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Schedule of Disaggregation of Revenue by Major Source and Geographic Location | Net sales by product class and segment are as follows:
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Inventories - Net (Tables) |
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Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Inventories | The components of "Inventories — net" at March 31, 2018 and December 31, 2017 are summarized as follows:
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Property, Plant and Equipment - Net (Tables) |
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Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Property, Plant and Equipment | The components of "Property, plant and equipment — net" at March 31, 2018 and December 31, 2017 are summarized as follows:
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Accounts Payable and Accrued Expenses and Other Liabilities (Tables) |
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Mar. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts Payable and Accrued Expenses | Accounts payable" and "Accrued expenses and other liabilities" at March 31, 2018 and December 31, 2017 are summarized as follows:
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Debt (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Outstanding Debt | Outstanding debt at March 31, 2018 and December 31, 2017 is summarized as follows:
(1) Total outstanding debt issuance costs, net of amortization as of March 31, 2018 and December 31, 2017 was $27.4 million and $28.6 million, respectively, of which $2.2 million at each date was related to the revolving credit facility and recorded in "Other non-current assets" in the consolidated balance sheets. (2) Represents the change in fair value due to changes in benchmark interest rates related to the Company's 9.50% Senior Notes due 2024 ("Senior Notes"). Refer to Note 9, "Derivative Financial Instruments," for additional information on the Company's interest rate swap designated as a fair value hedge. |
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Summary of Covenant Levels of Financial Covenants | The current covenant levels of the financial covenants under the Senior Secured Credit Facilities are set forth below:
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Derivative Financial Instruments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Outstanding Commodity and Currency Forward Contracts | As of March 31, 2018 and December 31, 2017, the Company had the following outstanding commodity and currency forward contracts that were entered into as hedges of forecasted transactions:
As of March 31, 2018 and December 31, 2017, the Company had the following outstanding currency forward contracts that were not designated as hedging instruments:
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Schedule of the Effect of Derivative Instruments on the Consolidated Statement of Operations for Gains or Losses Initially Recognized in Other Comprehensive Income (OCI) in the Consolidated Balance Sheet | The effects of derivative instruments on the consolidated statements of comprehensive income and consolidated statements of operations for the three months ended March 31, 2018 and 2017 for gains or losses initially recognized in AOCI in the consolidated balance sheets were as follows:
The effects of derivative instruments on the consolidated statements of comprehensive income and consolidated statements of operations for the three months ended March 31, 2018 and 2017 for gains or losses initially recognized in "Accumulated other comprehensive loss" ("AOCI") in the consolidated balance sheets were as follows:
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Schedule of Gain or Loss on the Hedged Items | The gain or loss on the hedged items (that is, fixed-rate borrowing of the Senior Notes) attributable to the hedged benchmark interest rate risk (risk of changes in the applicable LIBOR swap rate) and the offsetting gain or loss on the related interest rate swap is as follows:
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Schedule of the Fair Value of Outstanding Derivative Contracts Recorded as Assets in the Accompanying Consolidated Balance Sheet | The fair value of outstanding derivative contracts recorded as assets in the consolidated balance sheets as of March 31, 2018 and December 31, 2017 was as follows:
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Schedule of the Fair Value of Outstanding Derivative Contracts Recorded as Liabilities in the Accompanying Consolidated Balance Sheet | The fair value of outstanding derivative contracts recorded as liabilities in the consolidated balance sheets as of March 31, 2018 and December 31, 2017 was as follows:
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Fair Value of Financial Instruments (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets and Liabilities Accounted for at Fair Value on a Recurring Basis by level within the Fair Value Hierarchy | The following tables set forth financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2018 and December 31, 2017 by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
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Accumulated Other Comprehensive Loss (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliations for the Changes in Accumulated Other Comprehensive Income (Loss) | The components of "Accumulated other comprehensive loss" as of March 31, 2018 and December 31, 2017 are as follows:
A summary of the changes in "Accumulated other comprehensive loss," net of tax, by component for the three months ended March 31, 2018 and 2017 are as follows:
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Reclassification out of Accumulated Other Comprehensive Income | A reconciliation of the reclassifications out of accumulated other comprehensive income (loss), net of tax, for the three months ended March 31, 2018 and 2017:
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Product Warranties (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||
Guarantees [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Schedule of the Summary of Product Warranty Activity | Below is a table summarizing the product warranty activity for the three months ended March 31, 2018:
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Restructuring (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||
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Mar. 31, 2018 | ||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||
Rollforward of all Restructuring Activities | The following is a rollforward of all restructuring activities for the three months ended March 31, 2018:
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Employee Benefit Plans (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Period Benefit Costs | The components of periodic benefit costs for the defined benefit plans for the three months ended March 31, 2018 and 2017 were as follows:
The components of periodic benefit costs are recorded in "Other expense — net" in the consolidated statements of operations. |
Business Segments (Tables) |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Financial Information Relating to the Company's Reportable Segments | Financial information relating to the Company's reportable segments for the three months ended March 31, 2018 and 2017 respectively is as follows:
As of March 31, 2018 and December 31, 2017, total assets by reportable segment are as follows:
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Earnings Per Share (Tables) |
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Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of the Average Shares Outstanding Used to Compute Basic and Diluted Earnings per Share | The following is a reconciliation of the weighted average shares outstanding used to compute basic and diluted earnings per share:
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Subsidiary Guarantors of Senior Notes due 2024 (Tables) |
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Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidating Statement of Operations | WELBILT, INC. Consolidating Statement of Operations (Unaudited)
WELBILT, INC. Consolidating Statement of Operations (Unaudited)
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Consolidating Balance Sheet | WELBILT, INC. Consolidating Balance Sheet (Unaudited)
WELBILT, INC. Consolidating Balance Sheet (Audited)
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Consolidating Statement of Cash Flows | WELBILT, INC. Consolidating Statement of Cash Flows (Unaudited)
WELBILT, INC. Consolidating Statement of Cash Flows (Unaudited)
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Description of the Business (Details) |
3 Months Ended |
---|---|
Mar. 31, 2018
segment
| |
Accounting Policies [Abstract] | |
Number of segments | 3 |
Summary of Significant Accounting Policies and Basis of Presentation - Cumulative Adjustments on the Balance Sheet (Details) - USD ($) $ in Millions |
Mar. 31, 2018 |
Jan. 01, 2018 |
Dec. 31, 2017 |
---|---|---|---|
Assets | |||
Inventories — net | $ 177.4 | $ 153.4 | $ 152.3 |
Equity: | |||
Retained earnings | $ 218.1 | 205.6 | 204.5 |
Calculated under Revenue Guidance in Effect before Topic 606 | |||
Assets | |||
Inventories — net | 152.3 | ||
Equity: | |||
Retained earnings | $ 204.5 | ||
Adjustments Due to ASU 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||
Assets | |||
Inventories — net | $ 1.1 |
Acquisitions (Details) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Apr. 19, 2018
USD ($)
brand
|
Mar. 31, 2018
USD ($)
|
Mar. 31, 2017
USD ($)
|
Mar. 31, 2018
SEK (kr)
|
|
Business Acquisition [Line Items] | ||||
Professional services and other acquisition costs | $ 1.2 | $ 0.0 | ||
Avaj International Holding AB | ||||
Business Acquisition [Line Items] | ||||
Foreign currency hedge | kr | kr 1,800,000,000 | |||
Professional services and other acquisition costs | 1.2 | |||
Foreign currency loss | $ 7.8 | |||
Avaj International Holding AB | Subsequent Event | ||||
Business Acquisition [Line Items] | ||||
Share capital acquired (as a percent) | 100.00% | |||
Aggregate consideration | $ 220.3 | |||
Cash payment | 157.4 | |||
Interest payment | 2.4 | |||
Shareholder loans | $ 60.5 | |||
Number of brands | brand | 3 |
Inventories - Net (Details) - USD ($) $ in Millions |
Mar. 31, 2018 |
Jan. 01, 2018 |
Dec. 31, 2017 |
---|---|---|---|
Inventories — gross: | |||
Raw materials | $ 77.0 | $ 73.9 | |
Work-in-process | 19.1 | 18.9 | |
Finished goods | 109.9 | 86.9 | |
Total inventories — gross | 206.0 | 179.7 | |
Excess and obsolete inventory reserve | (24.7) | (23.5) | |
Net inventories at FIFO cost | 181.3 | 156.2 | |
Excess of FIFO costs over LIFO value | (3.9) | (3.9) | |
Inventories — net | $ 177.4 | $ 153.4 | $ 152.3 |
Property, Plant and Equipment - Net (Details) - USD ($) $ in Millions |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Property, Plant and Equipment | ||
Total cost | $ 408.6 | $ 402.5 |
Less accumulated depreciation | (296.0) | (290.3) |
Property, plant and equipment — net | 112.6 | 112.2 |
Land | ||
Property, Plant and Equipment | ||
Total cost | 9.9 | 9.5 |
Building and improvements | ||
Property, Plant and Equipment | ||
Total cost | 89.7 | 88.9 |
Machinery, equipment and tooling | ||
Property, Plant and Equipment | ||
Total cost | 228.7 | 227.3 |
Furniture and fixtures | ||
Property, Plant and Equipment | ||
Total cost | 6.4 | 6.0 |
Computer hardware and software | ||
Property, Plant and Equipment | ||
Total cost | 56.4 | 55.1 |
Construction in progress | ||
Property, Plant and Equipment | ||
Total cost | $ 17.5 | $ 15.7 |
Accounts Payable and Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Millions |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Payables and Accruals [Abstract] | ||
Trade accounts payable | $ 112.9 | $ 103.6 |
Total accounts payable | 112.9 | 103.6 |
Accrued expenses and other liabilities: | ||
Interest payable | 2.3 | 7.8 |
Income taxes payable | 3.1 | 6.1 |
Employee related expenses | 30.9 | 30.8 |
Restructuring expenses | 3.4 | 5.0 |
Profit sharing and incentives | 7.0 | 11.5 |
Accrued rebates | 32.3 | 50.0 |
Deferred revenue - current | 3.8 | 4.2 |
Customer advances | 2.9 | 2.6 |
Product liability | 1.5 | 1.4 |
Miscellaneous accrued expenses | 51.0 | 42.3 |
Total accrued expenses and other liabilities | $ 138.2 | $ 161.7 |
Accounts Receivable Securitization (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Dec. 31, 2017 |
|
Transfers and Servicing [Abstract] | ||
Capacity of securitization program | $ 110,000,000.0 | |
Average collection cycle for accounts receivable (less than) | 60 days | |
Fair value of deferred purchase price notes | $ 70,900,000 | $ 62,900,000 |
Trade accounts receivable balance sold | $ 88,000,000 | $ 99,500,000 |
Debt - Summary of Covenant Levels of Financial Covenants (Details) |
Mar. 31, 2018 |
Feb. 28, 2018 |
---|---|---|
Debt Disclosure [Abstract] | ||
Consolidated Total Leverage Ratio (less than) | 5.25 | 5.25 |
Consolidated Interest Coverage Ratio (greater than) | 3.00 | |
Consolidated total leverage ratio | 4.65 | |
Consolidated interest coverage ratio | 3.41 |
Derivative Financial Instruments - Schedule of Outstanding Commodity Contracts (Details) - Designated as Hedging Instrument - T |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Aluminum | ||
Derivative [Line Items] | ||
Commodity units hedged, mass | 2,306 | 1,620 |
Copper | ||
Derivative [Line Items] | ||
Commodity units hedged, mass | 684 | 667 |
Steel | ||
Derivative [Line Items] | ||
Commodity units hedged, mass | 13,781 | 7,713 |
Derivative Financial Instruments - Schedule of Currency Forward Contracts MXN, THB and CHF (Details) - Foreign currency exchange contracts |
Mar. 31, 2018
MXN ($)
|
Mar. 31, 2018
SEK (kr)
|
Mar. 31, 2018
CHF (SFr)
|
Dec. 31, 2017
MXN ($)
|
Dec. 31, 2017
SEK (kr)
|
Dec. 31, 2017
CHF (SFr)
|
---|---|---|---|---|---|---|
Not Designated as Hedging Instrument | Swiss Franc | ||||||
Derivative [Line Items] | ||||||
Derivative notional amount | SFr | SFr 2,700,000 | SFr 4,800,000 | ||||
Not Designated as Hedging Instrument | Sweden, Kronor | ||||||
Derivative [Line Items] | ||||||
Derivative notional amount | kr | kr 1,800,000,000 | kr 0 | ||||
Designated as Hedging Instrument | Mexican Peso | ||||||
Derivative [Line Items] | ||||||
Derivative notional amount | $ | $ 335,000,000 | $ 126,400,000 |
Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Millions |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Senior Notes due 2024 | Senior Notes | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Fair value of debt | $ 474.4 | $ 483.8 |
Term Loan B Facility | Secured Debt | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Fair value of debt | $ 821.6 | $ 818.1 |
Income Taxes - Narrative (Details) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2018
USD ($)
segment
|
Mar. 31, 2017
USD ($)
|
Dec. 31, 2017
USD ($)
|
|
Income Tax Contingency [Line Items] | |||
Income taxes (benefit) | $ 0.3 | $ 2.1 | |
Effective tax rate (as a percent) | 2.30% | 29.60% | |
Discrete tax adjustment | $ 3.7 | ||
Loss on early extinguishment of debt | $ 0.0 | $ 3.2 | |
Number of reportable segments | segment | 3 | ||
Unrecognized tax benefits | $ 12.5 | $ 12.5 | |
Minimum | |||
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefits reasonably possible to impact effective income tax rate | 0.1 | ||
Maximum | |||
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefits reasonably possible to impact effective income tax rate | $ 0.5 | ||
Term loan B | |||
Income Tax Contingency [Line Items] | |||
Income tax benefit | 1.0 | ||
Term loan B | Reclassification of Debt Issuance Costs | |||
Income Tax Contingency [Line Items] | |||
Loss on early extinguishment of debt | $ (2.7) |
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions |
Mar. 31, 2018 |
Dec. 31, 2017 |
Mar. 31, 2017 |
---|---|---|---|
Equity [Abstract] | |||
Foreign currency translation, net of income tax benefit of $3.3 million and $2.8 million at March 31, 2018 and December 31, 2017, respectively | $ 4.5 | $ 4.4 | |
Derivative instrument fair market value, net of income tax expense of $2.2 million and $1.8 million at March 31, 2018 and December 31, 2017, respectively | 5.6 | 3.6 | |
Employee pension and postretirement benefit adjustments, net of income tax benefit of $6.4 million and $6.5 million at March 31, 2018 and December 31, 2017, respectively | (39.5) | (40.0) | |
Accumulated other comprehensive loss | (29.4) | $ (32.0) | |
Foreign currency translation tax effect | 3.3 | $ 2.8 | |
Derivative instrument fair market value tax effect | 2.2 | 1.8 | |
Employee pension and postretirement benefit adjustments tax effect | $ 6.4 | $ 6.5 |
Contingencies and Significant Estimates - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Dec. 31, 2017 |
|
Product Warranty Liability [Line Items] | ||
Accruals for environmental matters | $ 0.8 | $ 0.8 |
Period over which product liability self-insurance retention levels have fluctuated (in years) | 10 years | |
Self insurance reserve | $ 1.3 | |
Product liability reserves | 1.5 | 1.4 |
Product liability reserves for actual cases | 0.4 | 0.4 |
Product liability reserves for claims incurred but not reported | 1.1 | 1.0 |
Warranty claims expected to be paid within a year or less | 26.2 | 24.1 |
Warranty claims expected to be paid after one year | 11.4 | $ 11.9 |
Minimum | ||
Product Warranty Liability [Line Items] | ||
Self insurance reserve per occurrence | 0.1 | |
Maximum | ||
Product Warranty Liability [Line Items] | ||
Self insurance reserve per occurrence | 0.3 | |
Product liability self-insurance retention levels per occurrence | $ 0.3 |
Product Warranties - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Dec. 31, 2017 |
|
Product Warranty Liability [Line Items] | ||
Standard product warranty, low end of range (in months) | 12 months | |
Standard product warranty, high end of range (in months) | 60 months | |
Deferred revenue - current | $ 3.8 | $ 4.2 |
Accrued expenses and other liabilities | ||
Product Warranty Liability [Line Items] | ||
Deferred revenue - current | 3.1 | 3.1 |
Other long-term liabilities | ||
Product Warranty Liability [Line Items] | ||
Deferred revenue - noncurrent | $ 3.4 | $ 3.6 |
Product Warranties - Schedule of the Summary of Product Warranty Activity (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Dec. 31, 2017 |
|
Warranty activity | ||
Balance at beginning of period | $ 36.0 | |
Accruals for warranties issued | 9.9 | |
Settlements made (in cash or in kind) | (8.5) | |
Currency translation impact | 0.2 | |
Balance at end of period | 37.6 | |
Long term warranty liabilities | $ 11.4 | $ 11.9 |
Restructuring - Rollforward of all Restructuring Activities (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Rollforward of all restructuring activities | ||
Beginning balance | $ 16.1 | |
Restructuring expense | 0.4 | $ 4.6 |
Use of reserve | (2.3) | |
Ending balance | $ 14.2 |
Restructuring - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |||||
---|---|---|---|---|---|---|
May 05, 2017 |
Jan. 02, 2017 |
Mar. 31, 2018 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2017 |
|
Restructuring Cost and Reserve [Line Items] | ||||||
Short term portion of liability | $ 3.4 | $ 5.0 | ||||
Long term portion of liability | 10.8 | $ 11.1 | ||||
Restructuring expense | 0.4 | $ 4.6 | ||||
RIF | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring expense | $ 0.4 | |||||
Vice President | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Severance payment period | 12 months | 18 months | ||||
Compensation arrangement with individual | $ 2.5 | 2.2 | ||||
Stock-based compensation expense | 1.1 | |||||
Vested benefits paid | $ 2.5 | |||||
Benefits interest rate (as a percent) | 9.00% | |||||
Additional equity based compensation | $ 1.5 | |||||
Vice President | Restructuring expense | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Compensation arrangement with individual | $ 1.0 | $ 1.5 |
Employee Benefit Plans - Schedule of Components of Period Benefit Costs (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost of projected benefit obligation | $ 1.3 | $ 1.3 |
Expected return on assets | (1.5) | (1.5) |
Amortization of actuarial net loss | 0.6 | 0.5 |
Net periodic benefit cost | 0.4 | 0.3 |
Postretirement Health and Other Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost of projected benefit obligation | 0.1 | 0.1 |
Expected return on assets | 0.0 | 0.0 |
Amortization of actuarial net loss | 0.0 | 0.0 |
Net periodic benefit cost | $ 0.1 | $ 0.1 |
Earnings Per Share - Reconciliation of the Average Shares Outstanding Used to Compute Basic and Diluted Earnings per Share (Details) - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Basic weighted average common shares outstanding (in shares) | 139,708,723 | 138,759,075 |
Effect of dilutive securities: | ||
Net effect of dilutive securities (in shares) | 1,261,820 | 1,672,123 |
Diluted weighted average common shares outstanding (in shares) | 140,970,543 | 140,431,198 |
Stock options | ||
Effect of dilutive securities: | ||
Effect of dilutive securities (in shares) | 736,518 | 867,111 |
Unvested restricted stock | ||
Effect of dilutive securities: | ||
Effect of dilutive securities (in shares) | 390,226 | 219,777 |
Unvested performance share units | ||
Effect of dilutive securities: | ||
Effect of dilutive securities (in shares) | 135,076 | 585,235 |
Earnings Per Share - Narrative (Details) - shares shares in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Number of anti-dilutive shares excluded from the calculation of diluted earnings per share (in shares) | 1.6 | 1.1 |
Subsidiary Guarantors of Senior Notes due 2024 - Narrative (Details) |
Mar. 31, 2018 |
---|---|
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Subsidiary ownership (as a percent) | 100.00% |