WELBILT, INC., 10-Q filed on 5/8/2018
Quarterly Report
v3.8.0.1
Document and Entity Information - shares
3 Months Ended
Mar. 31, 2018
May 04, 2018
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
v3.8.0.1
Consolidated Statements of Operations - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
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
v3.8.0.1
Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
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
v3.8.0.1
Consolidated Balance Sheets - USD ($)
$ in Millions
Mar. 31, 2018
Dec. 31, 2017
Current assets:    
Cash and cash equivalents $ 153.8 $ 128.4
Restricted cash 0.3 0.3
Accounts receivable, less allowance of $4.0 at March 31, 2018 and December 31, 2017 90.5 83.7
Inventories — net 177.4 152.3
Prepaids and other current assets 24.7 19.0
Total current assets 446.7 383.7
Property, plant and equipment — net 112.6 112.2
Goodwill 846.6 846.1
Other intangible assets — net 455.7 461.4
Other non-current assets 37.2 37.0
Total assets 1,898.8 1,840.4
Current liabilities:    
Accounts payable 112.9 103.6
Accrued expenses and other liabilities 138.2 161.7
Current portion of capital leases 0.7 0.7
Product warranties 26.2 24.1
Total current liabilities 278.0 290.1
Long-term debt and capital leases 1,279.5 1,232.2
Deferred income taxes 91.7 92.3
Pension and postretirement health obligations 46.0 48.3
Other long-term liabilities 71.3 67.1
Total non-current liabilities 1,488.5 1,439.9
Commitments and contingencies
Total equity:    
Common stock ($0.01 par value, 300,000,000 shares authorized, 139,910,969 shares and 139,491,860 shares issued and 139,910,969 shares and 139,440,470 shares outstanding at March 31, 2018 and December 31, 2017, respectively) 1.4 1.4
Additional paid-in capital (deficit) (57.6) (63.3)
Retained earnings 218.1 204.5
Accumulated other comprehensive loss (29.4) (32.0)
Treasury stock, at cost, 51,321 shares and 51,390 shares, respectively (0.2) (0.2)
Total equity 132.3 110.4
Total liabilities and equity $ 1,898.8 $ 1,840.4
v3.8.0.1
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Mar. 31, 2018
Dec. 31, 2017
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
v3.8.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Cash flows from operating activities    
Net earnings $ 12.5 $ 5.0
Adjustments to reconcile net earnings to cash used in operating activities:    
Depreciation 4.2 4.0
Amortization expense 7.9 7.8
Amortization of debt issuance costs 1.4 1.3
Loss on early extinguishment of debt 0.0 3.2
Deferred income taxes (1.6) (2.9)
Stock-based compensation expense 3.2 4.4
(Gain) loss from impairment or disposal of assets — net (0.1) 0.4
Changes in operating assets and liabilities, excluding the effects of business acquisitions or dispositions:    
Accounts receivable (134.8) (121.9)
Inventories (23.0) (23.9)
Other assets (1.5) (3.5)
Accounts payable 8.4 8.6
Other current and long-term liabilities (30.1) (46.9)
Net cash used in operating activities (153.5) (164.4)
Cash flows from investing activities    
Cash receipts on beneficial interest in sold receivables 131.8 115.9
Capital expenditures (3.7) (4.9)
Net cash provided by investing activities 128.1 111.0
Cash flows from financing activities    
Proceeds from long-term debt and capital leases 74.0 78.9
Repayments on long-term debt and capital leases (19.2) (2.5)
Debt issuance costs (0.1) (1.4)
Proceeds from short-term borrowings 0.0 4.0
Exercises of stock options 2.5 0.9
Payments on tax withholdings for equity awards (2.0) (2.1)
Net cash provided by financing activities 55.2 77.8
Effect of exchange rate changes on cash (4.4) (1.8)
Net increase in cash and cash equivalents and restricted cash 25.4 22.6
Balance at beginning of period 128.7 60.2
Balance at end of period 154.1 82.8
Supplemental disclosures of cash flow information:    
Cash paid for income taxes, net of refunds 10.4 10.2
Cash paid for interest, net of related hedge settlements 26.0 33.7
Non-cash investing activity:    
Beneficial interest obtained in exchange for securitized receivables $ 169.6 $ 169.9
v3.8.0.1
Consolidated Statements of Equity - USD ($)
$ in Millions
Total
Common Stock
Additional Paid-In Capital (Deficit)
Retained Earnings
Accumulated Other Comprehensive (Loss) Income
Treasury Stock
Beginning balance at Dec. 31, 2016         $ (43.4)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net earnings $ 5.0          
Other comprehensive income 6.8          
Ending balance at Mar. 31, 2017         (36.6)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Cumulative effect of accounting standards adoption (Note 2) $ 1.1     $ 1.1    
Common stock outstanding beginning of period (in shares) at Dec. 31, 2017 139,440,470 139,491,860        
Beginning balance at Dec. 31, 2017 $ 110.4 $ 1.4 $ (63.3) 204.5 (32.0) $ (0.2)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net earnings 12.5     12.5    
Issuance of common stock, stock-based compensation plans (in shares)   419,109        
Issuance of common stock, stock-based compensation plans 2.5   2.5      
Stock-based compensation expense 3.2   3.2      
Other comprehensive income 2.6       2.6  
Ending balance at Mar. 31, 2018 $ 132.3 $ 1.4 $ (57.6) $ 218.1 $ (29.4) $ (0.2)
Common stock outstanding end of period (in shares) at Mar. 31, 2018 139,910,969 139,910,969        
v3.8.0.1
Description of the Business
3 Months Ended
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).
v3.8.0.1
Summary of Significant Accounting Policies and Basis of Presentation
3 Months Ended
Mar. 31, 2018
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:

Reclassification of periodic pension and postretirement benefit costs totaling $0.3 million from "Selling, general and administrative expenses" to "Other expense — net" in the consolidated statement of operations for the three months ended March 31, 2017 as a result of the retrospective adoption of ASU 2017-07, "Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost."

Beginning and ending cash and cash equivalents shown on the consolidated statements of cash flows for the three months ended March 31, 2017 were increased for restricted cash of $6.4 million and $0.2 million, respectively, and cash flows provided by investing activities were reduced by $6.2 million as a result of adopting ASU 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash."

As a result of the adoption of ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments," the Company reclassified consideration received for the beneficial interest obtained for transferring trade receivables in securitization transactions of $115.9 million from operating activities to investing activities on the consolidated statements of cash flows for the three months ended March 31, 2017.

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:

(in millions)
 
As of December 31, 2017
 
Adjustments Due to Adoption of ASU 2014-09
 
As of January 1, 2018
Balance Sheet
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
Inventories — net
 
$
152.3

 
$
1.1

 
$
153.4

Equity:
 
 
 
 
 
 
Retained earnings
 
$
204.5

 
$
1.1

 
$
205.6


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:

 
 
Three Months Ended March 31, 2018
(in millions)
 
Commercial Foodservice Whole Goods
 
Aftermarket Parts and Support
 
Total
Americas
 
$
209.1

 
$
40.9

 
$
250.0

EMEA
 
51.7

 
12.4

 
64.1

APAC
 
29.2

 
7.1

 
36.3

Total net sales
 
$
290.0

 
$
60.4

 
$
350.4



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.
v3.8.0.1
Acquisitions
3 Months Ended
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."
v3.8.0.1
Inventories - Net
3 Months Ended
Mar. 31, 2018
Inventory Disclosure [Abstract]  
Inventories - Net
Inventories — Net

The components of "Inventories — net" at March 31, 2018 and December 31, 2017 are summarized as follows:

 
 
March 31,
 
December 31,
(in millions)
 
2018
 
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

 
$
152.3

v3.8.0.1
Property, Plant and Equipment - Net
3 Months Ended
Mar. 31, 2018
Property, Plant and Equipment [Abstract]  
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:

 
 
March 31,
 
December 31,
(in millions)
 
2018
 
2017
Land
 
$
9.9

 
$
9.5

Building and improvements
 
89.7

 
88.9

Machinery, equipment and tooling
 
228.7

 
227.3

Furniture and fixtures
 
6.4

 
6.0

Computer hardware and software
 
56.4

 
55.1

Construction in progress
 
17.5

 
15.7

Total cost
 
408.6

 
402.5

Less accumulated depreciation
 
(296.0
)
 
(290.3
)
Property, plant and equipment — net
 
$
112.6

 
$
112.2

v3.8.0.1
Accounts Payable and Accrued Expenses and Other Liabilities
3 Months Ended
Mar. 31, 2018
Payables and Accruals [Abstract]  
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:

 
 
March 31,
 
December 31,
(in millions)
 
2018
 
2017
Accounts payable:
 
 
 
 
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

v3.8.0.1
Accounts Receivable Securitization
3 Months Ended
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.
v3.8.0.1
Debt
3 Months Ended
Mar. 31, 2018
Debt Disclosure [Abstract]  
Debt
Debt

Outstanding debt at March 31, 2018 and December 31, 2017 is summarized as follows:

 
 
March 31,
 
December 31,
(in millions)
 
2018
 
2017
Revolving credit facility
 
$
80.0

 
$
25.0

Term Loan B facility
 
815.0

 
815.0

9.50% Senior Notes due 2024
 
425.0

 
425.0

Capital leases
 
2.6

 
2.7

Total debt and capital leases, including current portion
 
1,322.6

 
1,267.7

Less current portion of capital leases
 
(0.7
)
 
(0.7
)
Less unamortized debt issuance costs (1)
 
(25.2
)
 
(26.4
)
Less hedge accounting fair value adjustment (2)
 
(17.2
)
 
(8.4
)
Total long-term debt and capital leases
 
$
1,279.5

 
$
1,232.2

(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:

Quarter Ending
 
Consolidated Total Leverage Ratio (less than)
 
Actual Consolidated Total Leverage Ratio
 
Consolidated Interest Coverage Ratio (greater than)
 
Actual Consolidated Interest Coverage Ratio
March 31, 2018
 
5.25:1.00
 
4.65:1.00
 
3.00:1.00
 
3.41:1.00


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.
v3.8.0.1
Derivative Financial Instruments
3 Months Ended
Mar. 31, 2018
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:

 
 
Units Hedged
 
 
Commodity
 
March 31, 2018
 
December 31, 2017
 
Unit
Aluminum
 
2,306

 
1,620

 
MT
Copper
 
684

 
667

 
MT
Steel
 
13,781

 
7,713

 
Short tons

 
 
Units Hedged
Currency
 
March 31, 2018
 
December 31, 2017
Canadian Dollar
 
21,880,000

 
18,080,000

European Euro
 
22,150,000

 
8,545,000

British Pound
 
19,462,497

 
7,807,744

Mexican Peso
 
335,000,000

 
126,400,000

Singapore Dollar
 
3,820,000

 
1,765,000



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: 

Derivatives in cash flow hedging relationships (in millions)
 
Pretax gain (loss) recognized in AOCI (effective portion)
 
Location of gain (loss) reclassified from AOCI into income (effective portion)
 
Pretax gain (loss) reclassified from AOCI into income (effective portion)
 
 
Three Months Ended March 31,
 
 
 
Three Months Ended March 31,
 
 
2018

2017
 
 
 
2018
 
2017
Foreign currency exchange contracts
 
$
0.8

 
$
0.7

 
Cost of sales
 
$
0.5

 
$
0.2

Commodity contracts
 
(0.5
)
 
0.4

 
Cost of sales
 
0.5

 
0.2

Interest rate swap contracts
 
3.1

 
(1.6
)
 
Interest expense
 

 

Total
 
$
3.4

 
$
(0.5
)
 
 
 
$
1.0

 
$
0.4

 
 
 
 
 
 
 
 
 
 
 
Derivatives in cash flow hedging relationships (in millions)
 
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)
 
Location of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)
 
 
Three Months Ended March 31,
 
 
 
 
2018
 
2017
 
 
Commodity contracts
 
$
0.1

 
$
0.3

 
Cost of sales
Total
 
$
0.1

 
$
0.3

 
 
 
 
 
 
 
 
 

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:

Derivatives in fair value hedging relationships (in millions)
 
Loss on Swap
 
Income Statement Classification
 
Gain on Borrowings
 
 
Three Months Ended March 31,
 
 
 
Three Months Ended March 31,
 
 
2018
 
2017
 
 
 
2018
 
2017
Interest rate swap contract
 
$
(8.5
)
 
$
(5.7
)
 
Interest Expense
 
$
8.8

 
$
5.7

Total
 
$
(8.5
)
 
$
(5.7
)
 
 
 
$
8.8

 
$
5.7

 
 
 
 
 
 
 
 
 
 
 

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 in net investments hedging relationships
(in millions)
 
Pretax gain (loss) recognized in AOCI (effective portion)
 
Location of gain (loss) reclassified from AOCI into income (effective portion)
 
Amount of gain (loss) reclassified from AOCI into income (effective portion)
 
 
Three Months Ended March 31,
 
 
 
Three Months Ended March 31,
 
 
2018

2017
 
 
 
2018
 
2017
Interest rate swap contract
 
$
(2.0
)
 
$
3.3

 
Selling, general and administrative expenses
 
$

 
$

Total
 
$
(2.0
)
 
$
3.3

 
 
 
$

 
$

 
 
 
 
 
 
 
 
 
 
 

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:
 
 
 
 
 
 
 
 
 
 
 
Units Hedged
 
 
Currency
 
March 31, 2018
 
December 31, 2017
 
Purpose
Singapore Dollar
 
28,127,000

 
28,127,000

 
Notes payable and receivable settlement
European Euro
 
72,325,720

 
69,300,000

 
Notes and accounts payable and receivable settlement
British Pound
 
2,113,271

 
14,912,019

 
Accounts payable and receivable settlement
Swiss Franc
 
2,700,000

 
4,800,000

 
Accounts payable and receivable settlement
Swedish Krona
 
1,800,000,000

 

 
Crem Acquisition

Derivatives NOT designated as hedging instruments (in millions)
 
Amount of gain (loss) recognized in income on derivative
 
Location of gain (loss) recognized in income on derivative
 
 
Three Months Ended March 31,
 
 
 
 
2018
 
2017
 
 
Foreign currency exchange contracts
 
$
(12.9
)
 
$
(0.3
)
 
Other expense — net
Total
 
$
(12.9
)
 
$
(0.3
)
 
 
 
 
 
 
 
 
 

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:

 
 
Asset Derivatives
(in millions)
 
Balance Sheet Location
 
Fair Value
 
 
 
 
March 31, 2018
 
December 31, 2017
Derivatives designated as hedging instruments:
 
 
 
 
 
 
Foreign currency exchange contracts
 
Prepaids and other current assets
 
$
1.4

 
$
1.1

Commodity contracts
 
Prepaids and other current assets
 
1.9

 
1.7

Interest rate swap contracts
 
Prepaids and other current assets
 
3.8

 
1.7

Commodity contracts
 
Other non-current assets
 
0.3

 
0.6

Interest rate swap contracts
 
Other non-current assets
 
3.3

 
2.3

Total derivatives designated as hedging instruments
 
 
 
10.7

 
7.4

 
 
 
 
 
 
 
Derivatives NOT designated as hedging instruments:
 
 
 
 
 
 
Foreign currency exchange contracts
 
Prepaids and other current assets
 
0.6

 

Total derivatives NOT designated as hedging instruments
 
 
 
0.6

 

 
 
 
 
 
 
 
Total asset derivatives
 
 
 
$
11.3

 
$
7.4



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:

 
 
Liability Derivatives
(in millions)
 
Balance Sheet Location
 
Fair Value
 
 
 
 
March 31, 2018
 
December 31, 2017
Derivatives designated as hedging instruments:
 
 
 
 
 
 
Foreign currency exchange contracts
 
Accrued expenses and other liabilities
 
$
0.7

 
$
0.6

Commodity contracts
 
Accrued expenses and other liabilities
 
0.3

 
0.1

Commodity contracts
 
Other long-term liabilities
 
0.6

 

Interest rate swap contracts
 
Other long-term liabilities
 
28.2

 
17.7

Total derivatives designated as hedging instruments
 
 
 
29.8

 
18.4

 
 
 
 
 
 
 
Derivatives NOT designated as hedging instruments:
 
 
 
 
 
 
Foreign currency exchange contracts
 
Accrued expenses and other liabilities
 
7.8

 
0.5

Total derivatives NOT designated as hedging instruments
 
 
 
7.8

 
0.5

 
 
 
 
 
 
 
Total liability derivatives
 
 
 
$
37.6

 
$
18.9

v3.8.0.1
Fair Value of Financial Instruments
3 Months Ended
Mar. 31, 2018
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:

Level 1
Unadjusted quoted prices in active markets for identical assets or liabilities

Level 2
Unadjusted quoted prices in active markets for similar assets or liabilities, or

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

Level 3
Unobservable inputs 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.

 
 
Fair Value as of
 
 
March 31, 2018
(in millions)
 
Level 1
 
Level 2
 
Level 3
 
Total
Current assets:
 
 

 
 

 
 

 
 

Foreign currency exchange contracts
 
$

 
$
2.0

 
$

 
$
2.0

Commodity contracts
 

 
1.9

 

 
1.9

Interest rate swap contracts
 

 
3.8

 

 
3.8

Total current assets at fair value
 

 
7.7

 

 
7.7

Non-current assets:
 
 
 
 
 
 
 
 
Commodity contracts
 

 
0.3

 

 
0.3

Interest rate swap contracts
 

 
3.3

 

 
3.3

Total non-current assets at fair value
 

 
3.6

 

 
3.6

Total assets at fair value
 
$

 
$
11.3

 
$

 
$
11.3

Current liabilities:
 
 
 
 
 
 
 
 
Foreign currency exchange contracts
 
$

 
$
8.5

 
$

 
$
8.5

Commodity contracts
 

 
0.3

 

 
0.3

Total current liabilities at fair value
 

 
8.8

 

 
8.8

Non-current liabilities:
 
 
 
 
 
 
 
 
Commodity contracts
 

 
0.6

 

 
0.6

Interest rate swap contracts
 

 
28.2

 

 
28.2

Total non-current liabilities at fair value
 

 
28.8

 

 
28.8

Total liabilities at fair value
 
$

 
$
37.6

 
$

 
$
37.6


 
 
Fair Value as of
 
 
December 31, 2017
(in millions)
 
Level 1
 
Level 2
 
Level 3
 
Total
Current assets:
 
 
 
 
 
 
 
 
Foreign currency exchange contracts
 
$

 
$
1.1

 
$

 
$
1.1

Commodity contracts
 

 
1.7

 

 
1.7

Interest rate swap contracts
 

 
1.7

 

 
1.7

Total current assets at fair value
 

 
4.5

 

 
4.5

Non-current assets:
 
 
 
 
 
 
 
 
Commodity contracts
 

 
0.6

 

 
0.6

Interest rate swap contracts
 

 
2.3

 

 
2.3

Total non-current assets at fair value
 

 
2.9

 

 
2.9

Total assets at fair value
 
$

 
$
7.4

 
$

 
$
7.4

Current liabilities:
 
 
 
 
 
 
 
 
Foreign currency exchange contracts
 
$

 
$
1.1

 
$

 
$
1.1

Commodity contracts
 

 
0.1

 

 
0.1

Total current liabilities at fair value
 

 
1.2

 

 
1.2

Non-current liabilities:
 
 
 
 
 
 
 
 
Interest rate swap contracts
 

 
17.7

 

 
17.7

Total non-current liabilities at fair value
 

 
17.7

 

 
17.7

Total liabilities at fair value
 
$

 
$
18.9

 
$

 
$
18.9

v3.8.0.1
Income Taxes
3 Months Ended
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.
v3.8.0.1
Accumulated Other Comprehensive Loss
3 Months Ended
Mar. 31, 2018
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:

(in millions)
 
March 31, 2018
 
December 31, 2017
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
)
 
 
$
(29.4
)
 
$
(32.0
)


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:

(in millions)
 
Foreign Currency Translation(1)
 
Gains and Losses on Cash Flow Hedges
 
Pension & Postretirement
 
Total
Balance at December 31, 2017
 
$
4.4

 
$
3.6

 
$
(40.0
)
 
$
(32.0
)
Other comprehensive (loss) income before reclassifications
 
(0.4
)
 
3.4

 

 
3.0

Amounts reclassified out
 

 
(1.0
)
 
0.6

 
(0.4
)
Tax effect
 
0.5

 
(0.4
)
 
(0.1
)
 

Net current period other comprehensive income
 
0.1

 
2.0

 
0.5

 
2.6

Balance at March 31, 2018
 
$
4.5

 
$
5.6

 
$
(39.5
)
 
$
(29.4
)

(in millions)
 
Foreign Currency Translation(1)
 
Gains and Losses on Cash Flow Hedges
 
Pension & Postretirement
 
Total
Balance at December 31, 2016
 
$
(9.8
)
 
$
0.8

 
$
(34.4
)
 
$
(43.4
)
Other comprehensive income (loss) before reclassifications
 
7.0

 
(0.5
)
 

 
6.5

Amounts reclassified out
 

 
(0.4
)
 
0.5

 
0.1

Tax effect
 

 
0.3

 
(0.1
)
 
0.2

Net current period other comprehensive income (loss)
 
7.0

 
(0.6
)
 
0.4

 
6.8

Balance at March 31, 2017
 
$
(2.8
)
 
$
0.2

 
$
(34.0
)
 
$
(36.6
)
(1) Income taxes are not provided for foreign currency translation relating to permanent investments in international subsidiaries, but tax effects within cumulative translation does include the impact of the net investment hedge transaction. Reclassification adjustments are made to avoid double counting in comprehensive income items that are also recorded as part of net 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:

 
 
Three Months Ended March 31,
 
 
(in millions)
 
2018
 
2017
 
Recognized Location
Gains (losses) on cash flow hedges:
 
 
 
 
 
 
  Foreign currency exchange contracts
 
$
0.5

 
$
0.2

 
Cost of sales
  Commodity contracts
 
0.5

 
0.2

 
Cost of sales
 
 
1.0

 
0.4

 
Total
 
 
(0.3
)
 
(0.2
)
 
Income taxes
 
 
$
0.7

 
$
0.2

 
Net of tax
Amortization of pension and postretirement items:
 
 
 
 
 
 
  Actuarial losses
 
$
(0.6
)
 
$
(0.5
)
 
See Note 16
 
 
(0.6
)
 
(0.5
)
 
Total before tax
 
 
0.2

 
0.1

 
Income taxes
 
 
$
(0.4
)
 
$
(0.4
)
 
Net of tax
 
 
 
 
 
 
 
Total reclassifications for the period
 
$
0.3

 
$
(0.2
)
 
Net of tax
 
 
 
 
 
 
 
 
 
 
 
 
 
 
v3.8.0.1
Contingencies and Significant Estimates
3 Months Ended
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.
v3.8.0.1
Product Warranties
3 Months Ended
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:

(in millions)
 
 
Balance at December 31, 2017 (1)
 
$
36.0

Accruals for warranties issued
 
9.9

Settlements made (in cash or in kind)
 
(8.5
)
Currency translation impact
 
0.2

Balance at March 31, 2018 (1)
 
$
37.6


(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.
v3.8.0.1
Restructuring
3 Months Ended
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:

(in millions)
 
 
Balance at December 31, 2017
 
$
16.1

Restructuring charges
 
0.4

Use of reserve
 
(2.3
)
Balance at March 31, 2018
 
$
14.2



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.
v3.8.0.1
Employee Benefit Plans
3 Months Ended
Mar. 31, 2018
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:

 
 
Three Months Ended March 31,
 
 
2018
 
2017
(in millions)
 
Pension Plans
 
Postretirement
Health and
Other Plans
 
Pension Plans
 
Postretirement
Health and
Other Plans
Interest cost of projected benefit obligation
 
$
1.3

 
$
0.1

 
$
1.3

 
$
0.1

Expected return on assets
 
(1.5
)
 

 
(1.5
)
 

Amortization of actuarial net loss
 
0.6

 

 
0.5

 

Net periodic benefit cost
 
$
0.4

 
$
0.1

 
$
0.3

 
$
0.1


The components of periodic benefit costs are recorded in "Other expense — net" in the consolidated statements of operations.
 
 
 
 
 
 
 
 
 
v3.8.0.1
Business Segments
3 Months Ended
Mar. 31, 2018
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: 

 
 
Three Months Ended March 31,
(in millions, except percentage data)
 
2018
 
2017
Net sales:
 
 
 
 
Americas
 
$
280.2

 
$
267.5

EMEA
 
81.0

 
67.8

APAC
 
43.5

 
41.7

Elimination of intersegment sales
 
(54.3
)
 
(49.0
)
Total net sales
 
$
350.4

 
$
328.0

 
 
 
 
 
Segment Adjusted Operating EBITDA:
 
 
 
 
Americas
 
$
47.6

 
$
46.8

EMEA
 
14.1

 
12.8

APAC
 
5.5

 
5.5

Total Segment Adjusted Operating EBITDA
 
67.2

 
65.1

Corporate and unallocated
 
(11.9
)
 
(12.1
)
Amortization expense
 
(7.9
)
 
(7.8
)
Depreciation expense
 
(4.2
)
 
(4.0
)
Transaction costs
 
(1.2
)
 

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
 

 
(3.2
)
Other expense — net
 
(8.5
)
 
(1.8
)
Earnings before income taxes
 
$
12.8

 
$
7.1

 
 
 
 
 
Adjusted Operating EBITDA % by segment (1):
 
 
 
 
Americas
 
17.0
%
 
17.5
%
EMEA
 
17.4
%
 
18.9
%
APAC
 
12.6
%
 
13.2
%
(1) Adjusted Operating EBITDA % in the section above is calculated by dividing Adjusted Operating EBITDA by net sales for each respective segment.
 
 
 
 
 
Net sales by geographic area (2):
 
 
 
 
United States
 
$
223.4

 
$
215.0

Other Americas
 
28.5

 
23.0

EMEA
 
62.1

 
54.0

APAC
 
36.4

 
36.0

Total net sales by geographic area
 
$
350.4

 
$
328.0

(2) Net sales in the section above are attributed to geographic regions based on location of customer.

As of March 31, 2018 and December 31, 2017, total assets by reportable segment are as follows:

(in millions)
 
March 31, 2018
 
December 31, 2017
Total assets by segment:
 
 
 
 
Americas
 
$
1,470.3

 
$
1,445.6

EMEA
 
121.2

 
112.1

APAC
 
121.6

 
128.7

Corporate
 
185.7

 
154.0

Total assets
 
$
1,898.8

 
$
1,840.4

v3.8.0.1
Earnings Per Share
3 Months Ended
Mar. 31, 2018
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:

 
Three Months Ended March 31,
 
2018
 
2017
Weighted average shares outstanding — Basic
139,708,723

 
138,759,075

 
 
 
 
Effect of dilutive securities:
 
 
 
Stock options
736,518

 
867,111

Unvested restricted stock
390,226

 
219,777

Unvested performance share units
135,076

 
585,235

Effect of dilutive securities
1,261,820

 
1,672,123

 
 
 
 
Weighted average shares outstanding — Diluted
140,970,543

 
140,431,198



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.
v3.8.0.1
Subsidiary Guarantors of Senior Notes due 2024
3 Months Ended
Mar. 31, 2018
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)
 
 
Three Months Ended March 31, 2018
(in millions)
 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net sales
 
$

 
$
252.1

 
$
204.2

 
$
(105.9
)
 
$
350.4

Cost of sales
 
0.8

 
191.4

 
137.9

 
(105.9
)
 
224.2

Gross profit
 
(0.8
)
 
60.7

 
66.3

 

 
126.2

Selling, general and administrative expenses
 
8.9

 
37.6

 
29.8

 

 
76.3

Amortization expense
 

 
7.1

 
0.8

 

 
7.9

Separation expense
 
0.1

 

 

 

 
0.1

Restructuring expense
 

 
(0.1
)
 
0.5

 

 
0.4

Gain from impairment or disposal of assets — net
 

 
(0.1
)
 

 

 
(0.1
)
(Loss) earnings from operations
 
(9.8
)
 
16.2

 
35.2

 

 
41.6

Interest expense
 
19.1

 
0.3

 
0.9

 

 
20.3

Other (income) expense — net
 
(3.6
)
 
(2.9
)
 
15.0

 

 
8.5

Equity in earnings (loss) of subsidiaries
 
26.7

 
13.2

 

 
(39.9
)
 

Earnings (loss) before income taxes
 
1.4

 
32.0

 
19.3

 
(39.9
)
 
12.8

Income tax (benefit) expense
 
(11.1
)
 
5.3

 
6.1

 

 
0.3

Net earnings (loss)
 
$
12.5

 
$
26.7

 
$
13.2

 
$
(39.9
)
 
$
12.5

Total other comprehensive income (loss), net of tax
 
2.6

 
0.7

 
1.4

 
(2.1
)
 
2.6

Comprehensive income (loss)
 
$
15.1

 
$
27.4

 
$
14.6

 
$
(42.0
)
 
$
15.1


WELBILT, INC.
Consolidating Statement of Operations
(Unaudited) 
 
 
Three Months Ended March 31, 2017
(in millions)
 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net sales
 
$

 
$
241.4

 
$
173.0

 
$
(86.4
)
 
$
328.0

Cost of sales
 
0.9

 
169.7

 
120.8

 
(86.4
)
 
205.0

Gross profit
 
(0.9
)
 
71.7

 
52.2

 

 
123.0

Selling, general and administrative expenses
 
9.9

 
40.7

 
23.4

 

 
74.0

Amortization expense
 

 
7.1

 
0.7

 

 
7.8

Separation expense
 
0.9

 

 

 

 
0.9

Restructuring expense
 
3.7

 
0.9

 

 

 
4.6

Asset impairment expense
 

 
0.2

 
0.2

 

 
0.4

(Loss) earnings from operations
 
(15.4
)
 
22.8

 
27.9

 

 
35.3

Interest expense
 
22.2

 
0.3

 
0.7

 

 
23.2

Loss on early extinguishment of debt
 
3.2

 

 

 

 
3.2

Other (income) expense — net
 
(2.7
)
 
(5.2
)
 
9.7

 

 
1.8

Equity in earnings (loss) of subsidiaries
 
30.0

 
12.6

 

 
(42.6
)
 

(Loss) earnings before income taxes
 
(8.1
)
 
40.3

 
17.5

 
(42.6
)
 
7.1

Income tax (benefit) expense
 
(13.1
)
 
10.3

 
4.9

 

 
2.1

Net earnings (loss)
 
$
5.0

 
$
30.0

 
$
12.6

 
$
(42.6
)
 
$
5.0

Total other comprehensive income (loss), net of tax
 
6.8

 
4.4

 
3.9

 
(8.3
)
 
6.8

Comprehensive income (loss)
 
$
11.8

 
$
34.4

 
$
16.5

 
$
(50.9
)
 
$
11.8


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
WELBILT, INC.
Consolidating Balance Sheet
(Unaudited)
 
 
March 31, 2018
(in millions)
 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Assets
 
 

 
 
 
 
 
 
 
 
Current assets:
 
 

 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
10.6

 
$

 
$
143.3

 
$
(0.1
)
 
$
153.8

Restricted cash
 

 

 
0.3

 

 
0.3

Accounts receivable — net
 

 

 
92.1

 
(1.6
)
 
90.5

Inventories — net
 

 
84.5

 
92.9

 

 
177.4

Prepaids and other current assets
 
8.1

 
6.6

 
10.0

 

 
24.7

Total current assets
 
18.7

 
91.1

 
338.6

 
(1.7
)
 
446.7

Property, plant and equipment — net
 
0.5

 
68.5

 
43.6

 

 
112.6

Goodwill
 


 
832.5

 
14.1

 

 
846.6

Other intangible assets — net
 

 
389.2

 
66.5

 

 
455.7

Intercompany long-term note receivable
 

 
20.0

 

 
(20.0
)
 

Due from affiliates
 


 
3,229.6

 

 
(3,229.6
)
 

Investment in subsidiaries
 
4,042.4

 

 

 
(4,042.4
)
 

Other non-current assets
 
10.4

 
4.7

 
31.2

 
(9.1
)
 
37.2

Total assets
 
$
4,072.0

 
$
4,635.6

 
$
494.0

 
$
(7,302.8
)
 
$
1,898.8

Liabilities and equity
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
Accounts payable
 
$
0.2

 
$
59.2

 
$
55.1

 
$
(1.6
)
 
$
112.9

Accrued expenses and other liabilities
 
13.6

 
68.7

 
55.9

 

 
138.2

Current portion of capital leases
 

 
0.5

 
0.2

 

 
0.7

Product warranties
 

 
17.2

 
9.0

 

 
26.2

Total current liabilities
 
13.8

 
145.6

 
120.2

 
(1.6
)
 
278.0

Long-term debt and capital leases
 
1,277.6

 
1.1

 
0.8

 

 
1,279.5

Deferred income taxes
 
72.9

 

 
18.8

 

 
91.7

Pension and postretirement health obligations
 
50.5

 
4.7

 

 
(9.2
)
 
46.0

Intercompany long-term note payable
 
15.7

 

 
4.3

 
(20.0
)
 

Due to affiliates
 
2,466.6

 

 
763.0

 
(3,229.6
)
 

Investment in subsidiaries
 

 
417.6

 

 
(417.6
)
 

Other long-term liabilities
 
42.6

 
24.2

 
4.5

 

 
71.3

Total non-current liabilities
 
3,925.9

 
447.6

 
791.4

 
(3,676.4
)
 
1,488.5

Total equity (deficit):
 
 
 
 
 
 
 
 
 
 
Total equity (deficit)
 
132.3

 
4,042.4

 
(417.6
)
 
(3,624.8
)
 
132.3

Total liabilities and equity
 
$
4,072.0

 
$
4,635.6

 
$
494.0

 
$
(7,302.8
)
 
$
1,898.8

WELBILT, INC.
Consolidating Balance Sheet
(Audited)
 
 
December 31, 2017
(in millions)
 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Assets
 
 

 
 
 
 
 
 
 
 
Current assets:
 
 

 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
8.8

 
$

 
$
120.4

 
$
(0.8
)
 
$
128.4

Restricted cash
 

 

 
0.3

 

 
0.3

Accounts receivable — net
 

 

 
84.7

 
(1.0
)
 
83.7

Inventories — net
 

 
69.8

 
82.5

 

 
152.3

Prepaids and other current assets
 
5.3

 
5.9

 
7.8

 

 
19.0

Total current assets
 
14.1

 
75.7

 
295.7

 
(1.8
)
 
383.7

Property, plant and equipment — net
 
0.5

 
68.7

 
43.0

 

 
112.2

Goodwill
 

 
832.4

 
13.7

 

 
846.1

Other intangible assets — net
 

 
396.3

 
65.1

 

 
461.4

Intercompany long-term note receivable
 

 
20.0

 

 
(20.0
)
 

Due from affiliates
 

 
3,239.8

 

 
(3,239.8
)
 

Investment in subsidiaries
 
4,015.6

 

 

 
(4,015.6
)
 

Other non-current assets
 
10.8

 
5.2

 
28.7

 
(7.7
)
 
37.0

Total assets
 
$
4,041.0

 
$
4,638.1

 
$
446.2

 
$
(7,284.9
)
 
$
1,840.4

Liabilities and equity
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
Accounts payable
 
$
0.2

 
$
58.2

 
$
47.0

 
$
(1.8
)
 
$
103.6

Accrued expenses and other liabilities
 
19.1

 
86.1

 
56.5

 

 
161.7

Current portion of capital leases
 

 
0.5

 
0.2

 

 
0.7

Product warranties
 

 
16.2

 
7.9

 

 
24.1

Total current liabilities
 
19.3

 
161.0

 
111.6

 
(1.8
)
 
290.1

Long-term debt and capital leases
 
1,230.2

 
1.2

 
0.8

 

 
1,232.2

Deferred income taxes
 
74.7

 

 
17.6

 

 
92.3

Pension and postretirement health obligations
 
51.3

 
4.7

 

 
(7.7
)
 
48.3

Intercompany long-term note payable
 
15.7

 

 
4.3

 
(20.0
)
 

Due to affiliates
 
2,501.4

 

 
738.4

 
(3,239.8
)
 

Investment in subsidiaries
 

 
430.8

 

 
(430.8
)
 

Other long-term liabilities
 
38.0

 
24.8

 
4.3

 

 
67.1

Total non-current liabilities
 
3,911.3

 
461.5

 
765.4

 
(3,698.3
)
 
1,439.9

Total equity (deficit):
 
 
 
 
 
 
 
 
 
 
Total equity (deficit)
 
110.4

 
4,015.6

 
(430.8
)
 
(3,584.8
)
 
110.4

Total liabilities and equity
 
$
4,041.0

 
$
4,638.1

 
$
446.2

 
$
(7,284.9
)
 
$
1,840.4

WELBILT, INC.
Consolidating Statement of Cash Flows
(Unaudited)
 
 
Three Months Ended March 31, 2018
(in millions)
 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Cash flows from operating activities
 
 
 
 
 
 
 
 
 
 
Net cash (used in) provided by operating activities
 
$
(18.7
)
 
$
(8.0
)
 
$
(127.5
)
 
$
0.7

 
$
(153.5
)
Cash flows from investing activities
 
 
 
 
 
 
 
 
 
 
Cash receipts on beneficial interest sold in receivables
 

 

 
131.8

 

 
131.8

Capital expenditures
 
(0.1
)
 
(2.1
)
 
(1.5
)
 

 
(3.7
)
Intercompany investment
 

 
10.2

 
24.6

 
(34.8
)
 

Net cash (used in) provided by investing activities
 
(0.1
)
 
8.1

 
154.9

 
(34.8
)
 
128.1

Cash flows from financing activities
 
 
 
 
 
 
 
 
 
 
Proceeds from long-term debt and capital leases
 
74.0

 

 

 

 
74.0

Repayments on long-term debt and capital leases
 
(19.0
)
 
(0.1
)
 
(0.1
)
 

 
(19.2
)
Debt issuance costs
 
(0.1
)
 

 

 

 
(0.1
)
Exercises of stock options
 
2.5

 

 

 

 
2.5

Payments on tax withholdings for equity awards
 
(2.0
)
 

 

 

 
(2.0
)
Intercompany financing
 
(34.8
)
 

 

 
34.8

 

Net cash provided by (used in) financing activities
 
20.6

 
(0.1
)
 
(0.1
)
 
34.8

 
55.2

Effect of exchange rate changes on cash
 

 

 
(4.4
)
 

 
(4.4
)
Net increase in cash and cash equivalents and restricted cash
 
1.8

 

 
22.9

 
0.7

 
25.4

Balance at beginning of period
 
8.8

 

 
120.7

 
(0.8
)
 
128.7

Balance at end of period
 
$
10.6

 
$

 
$
143.6

 
$
(0.1
)
 
$
154.1

WELBILT, INC.
Consolidating Statement of Cash Flows
(Unaudited) 
 
 
Three Months Ended March 31, 2017
(in millions)
 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Cash flows from operating activities
 
 
 
 
 
 
 
 
 
 
Net cash used in operating activities
 
$
(14.8
)
 
$
(15.6
)
 
$
(134.0
)
 
$

 
$
(164.4
)
Cash flows from investing activities
 
 
 
 
 
 
 
 
 
 
Cash receipts on beneficial interest in sold receivables
 

 

 
115.9

 

 
115.9

Capital expenditures
 
(0.3
)
 
(2.2
)
 
(2.4
)
 

 
(4.9
)
Intercompany investment
 
(58.3
)
 

 

 
58.3

 

Net cash (used in) provided by investing activities
 
(58.6
)
 
(2.2
)
 
113.5

 
58.3

 
111.0

Cash flows from financing activities
 
 
 
 
 
 
 
 
 
 
Proceeds from long-term debt and capital leases
 
78.0

 

 
0.9

 

 
78.9

Repayments on long-term debt and capital leases
 
(1.5
)
 
(0.1
)
 
(0.9
)
 

 
(2.5
)
Debt issuance costs
 
(1.4
)
 

 

 

 
(1.4
)
Changes in short-term borrowings
 

 
0.9

 
4.0

 
(0.9
)
 
4.0

Exercises of stock options
 
0.9

 

 

 

 
0.9

Payments on tax withholdings for equity awards
 
(2.1
)
 

 

 

 
(2.1
)
Intercompany financing
 

 
14.7

 
43.6

 
(58.3
)
 

Net cash provided by (used in) financing activities
 
73.9

 
15.5

 
47.6

 
(59.2
)
 
77.8

Effect of exchange rate changes on cash
 

 

 
(1.8
)
 

 
(1.8
)
Net increase (decrease) in cash and cash equivalents and restricted cash
 
0.5

 
(2.3
)
 
25.3

 
(0.9
)
 
22.6

Balance at beginning of period
 
0.4

 
2.3

 
57.5

 

 
60.2

Balance at end of period
 
$
0.9

 
$

 
$
82.8

 
$
(0.9
)
 
$
82.8

v3.8.0.1
Summary of Significant Accounting Policies and Basis of Presentation (Policies)
3 Months Ended
Mar. 31, 2018
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.

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.

Reclassifications
Certain prior period amounts have been reclassified to conform to the current period presentation
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:

(in millions)
 
As of December 31, 2017
 
Adjustments Due to Adoption of ASU 2014-09
 
As of January 1, 2018
Balance Sheet
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
Inventories — net
 
$
152.3

 
$
1.1

 
$
153.4

Equity:
 
 
 
 
 
 
Retained earnings
 
$
204.5

 
$
1.1

 
$
205.6


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:

 
 
Three Months Ended March 31, 2018
(in millions)
 
Commercial Foodservice Whole Goods
 
Aftermarket Parts and Support
 
Total
Americas
 
$
209.1

 
$
40.9

 
$
250.0

EMEA
 
51.7

 
12.4

 
64.1

APAC
 
29.2

 
7.1

 
36.3

Total net sales
 
$
290.0

 
$
60.4

 
$
350.4



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.
v3.8.0.1
Summary of Significant Accounting Policies and Basis of Presentation (Tables)
3 Months Ended
Mar. 31, 2018
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:

(in millions)
 
As of December 31, 2017
 
Adjustments Due to Adoption of ASU 2014-09
 
As of January 1, 2018
Balance Sheet
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
Inventories — net
 
$
152.3

 
$
1.1

 
$
153.4

Equity:
 
 
 
 
 
 
Retained earnings
 
$
204.5

 
$
1.1

 
$
205.6


Schedule of Disaggregation of Revenue by Major Source and Geographic Location
Net sales by product class and segment are as follows:

 
 
Three Months Ended March 31, 2018
(in millions)
 
Commercial Foodservice Whole Goods
 
Aftermarket Parts and Support
 
Total
Americas
 
$
209.1

 
$
40.9

 
$
250.0

EMEA
 
51.7

 
12.4

 
64.1

APAC
 
29.2

 
7.1

 
36.3

Total net sales
 
$
290.0

 
$
60.4

 
$
350.4

v3.8.0.1
Inventories - Net (Tables)
3 Months Ended
Mar. 31, 2018
Inventory Disclosure [Abstract]  
Components of Inventories
The components of "Inventories — net" at March 31, 2018 and December 31, 2017 are summarized as follows:

 
 
March 31,
 
December 31,
(in millions)
 
2018
 
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

 
$
152.3

v3.8.0.1
Property, Plant and Equipment - Net (Tables)
3 Months Ended
Mar. 31, 2018
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:

 
 
March 31,
 
December 31,
(in millions)
 
2018
 
2017
Land
 
$
9.9

 
$
9.5

Building and improvements
 
89.7

 
88.9

Machinery, equipment and tooling
 
228.7

 
227.3

Furniture and fixtures
 
6.4

 
6.0

Computer hardware and software
 
56.4

 
55.1

Construction in progress
 
17.5

 
15.7

Total cost
 
408.6

 
402.5

Less accumulated depreciation
 
(296.0
)
 
(290.3
)
Property, plant and equipment — net
 
$
112.6

 
$
112.2

v3.8.0.1
Accounts Payable and Accrued Expenses and Other Liabilities (Tables)
3 Months Ended
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:

 
 
March 31,
 
December 31,
(in millions)
 
2018
 
2017
Accounts payable:
 
 
 
 
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

v3.8.0.1
Debt (Tables)
3 Months Ended
Mar. 31, 2018
Debt Disclosure [Abstract]  
Schedule of Outstanding Debt
Outstanding debt at March 31, 2018 and December 31, 2017 is summarized as follows:

 
 
March 31,
 
December 31,
(in millions)
 
2018
 
2017
Revolving credit facility
 
$
80.0

 
$
25.0

Term Loan B facility
 
815.0

 
815.0

9.50% Senior Notes due 2024
 
425.0

 
425.0

Capital leases
 
2.6

 
2.7

Total debt and capital leases, including current portion
 
1,322.6

 
1,267.7

Less current portion of capital leases
 
(0.7
)
 
(0.7
)
Less unamortized debt issuance costs (1)
 
(25.2
)
 
(26.4
)
Less hedge accounting fair value adjustment (2)
 
(17.2
)
 
(8.4
)
Total long-term debt and capital leases
 
$
1,279.5

 
$
1,232.2

(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.
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:

Quarter Ending
 
Consolidated Total Leverage Ratio (less than)
 
Actual Consolidated Total Leverage Ratio
 
Consolidated Interest Coverage Ratio (greater than)
 
Actual Consolidated Interest Coverage Ratio
March 31, 2018
 
5.25:1.00
 
4.65:1.00
 
3.00:1.00
 
3.41:1.00
v3.8.0.1
Derivative Financial Instruments (Tables)
3 Months Ended
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:

 
 
Units Hedged
 
 
Commodity
 
March 31, 2018
 
December 31, 2017
 
Unit
Aluminum
 
2,306

 
1,620

 
MT
Copper
 
684

 
667

 
MT
Steel
 
13,781

 
7,713

 
Short tons

 
 
Units Hedged
Currency
 
March 31, 2018
 
December 31, 2017
Canadian Dollar
 
21,880,000

 
18,080,000

European Euro
 
22,150,000

 
8,545,000

British Pound
 
19,462,497

 
7,807,744

Mexican Peso
 
335,000,000

 
126,400,000

Singapore Dollar
 
3,820,000

 
1,765,000

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:
 
 
 
 
 
 
 
 
 
 
 
Units Hedged
 
 
Currency
 
March 31, 2018
 
December 31, 2017
 
Purpose
Singapore Dollar
 
28,127,000

 
28,127,000

 
Notes payable and receivable settlement
European Euro
 
72,325,720

 
69,300,000

 
Notes and accounts payable and receivable settlement
British Pound
 
2,113,271

 
14,912,019

 
Accounts payable and receivable settlement
Swiss Franc
 
2,700,000

 
4,800,000

 
Accounts payable and receivable settlement
Swedish Krona
 
1,800,000,000

 

 
Crem Acquisition

Derivatives NOT designated as hedging instruments (in millions)
 
Amount of gain (loss) recognized in income on derivative
 
Location of gain (loss) recognized in income on derivative
 
 
Three Months Ended March 31,
 
 
 
 
2018
 
2017
 
 
Foreign currency exchange contracts
 
$
(12.9
)
 
$
(0.3
)
 
Other expense — net
Total
 
$
(12.9
)
 
$
(0.3
)
 
 
 
 
 
 
 
 
 
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: 

Derivatives in net investments hedging relationships
(in millions)
 
Pretax gain (loss) recognized in AOCI (effective portion)
 
Location of gain (loss) reclassified from AOCI into income (effective portion)
 
Amount of gain (loss) reclassified from AOCI into income (effective portion)
 
 
Three Months Ended March 31,
 
 
 
Three Months Ended March 31,
 
 
2018

2017
 
 
 
2018
 
2017
Interest rate swap contract
 
$
(2.0
)
 
$
3.3

 
Selling, general and administrative expenses
 
$

 
$

Total
 
$
(2.0
)
 
$
3.3

 
 
 
$

 
$

 
 
 
 
 
 
 
 
 
 
 
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: 

Derivatives in cash flow hedging relationships (in millions)
 
Pretax gain (loss) recognized in AOCI (effective portion)
 
Location of gain (loss) reclassified from AOCI into income (effective portion)
 
Pretax gain (loss) reclassified from AOCI into income (effective portion)
 
 
Three Months Ended March 31,
 
 
 
Three Months Ended March 31,
 
 
2018

2017
 
 
 
2018
 
2017
Foreign currency exchange contracts
 
$
0.8

 
$
0.7

 
Cost of sales
 
$
0.5

 
$
0.2

Commodity contracts
 
(0.5
)
 
0.4

 
Cost of sales
 
0.5

 
0.2

Interest rate swap contracts
 
3.1

 
(1.6
)
 
Interest expense
 

 

Total
 
$
3.4

 
$
(0.5
)
 
 
 
$
1.0

 
$
0.4

 
 
 
 
 
 
 
 
 
 
 
Derivatives in cash flow hedging relationships (in millions)
 
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)
 
Location of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)
 
 
Three Months Ended March 31,
 
 
 
 
2018
 
2017
 
 
Commodity contracts
 
$
0.1

 
$
0.3

 
Cost of sales
Total
 
$
0.1

 
$
0.3

 
 
 
 
 
 
 
 
 
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:

Derivatives in fair value hedging relationships (in millions)
 
Loss on Swap
 
Income Statement Classification
 
Gain on Borrowings
 
 
Three Months Ended March 31,
 
 
 
Three Months Ended March 31,
 
 
2018
 
2017
 
 
 
2018
 
2017
Interest rate swap contract
 
$
(8.5
)
 
$
(5.7
)
 
Interest Expense
 
$
8.8

 
$
5.7

Total
 
$
(8.5
)
 
$
(5.7
)
 
 
 
$
8.8

 
$
5.7

 
 
 
 
 
 
 
 
 
 
 
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:

 
 
Asset Derivatives
(in millions)
 
Balance Sheet Location
 
Fair Value
 
 
 
 
March 31, 2018
 
December 31, 2017
Derivatives designated as hedging instruments:
 
 
 
 
 
 
Foreign currency exchange contracts
 
Prepaids and other current assets
 
$
1.4

 
$
1.1

Commodity contracts
 
Prepaids and other current assets
 
1.9

 
1.7

Interest rate swap contracts
 
Prepaids and other current assets
 
3.8

 
1.7

Commodity contracts
 
Other non-current assets
 
0.3

 
0.6

Interest rate swap contracts
 
Other non-current assets
 
3.3

 
2.3

Total derivatives designated as hedging instruments
 
 
 
10.7

 
7.4

 
 
 
 
 
 
 
Derivatives NOT designated as hedging instruments:
 
 
 
 
 
 
Foreign currency exchange contracts
 
Prepaids and other current assets
 
0.6

 

Total derivatives NOT designated as hedging instruments
 
 
 
0.6

 

 
 
 
 
 
 
 
Total asset derivatives
 
 
 
$
11.3

 
$
7.4

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:

 
 
Liability Derivatives
(in millions)
 
Balance Sheet Location
 
Fair Value
 
 
 
 
March 31, 2018
 
December 31, 2017
Derivatives designated as hedging instruments:
 
 
 
 
 
 
Foreign currency exchange contracts
 
Accrued expenses and other liabilities
 
$
0.7

 
$
0.6

Commodity contracts
 
Accrued expenses and other liabilities
 
0.3

 
0.1

Commodity contracts
 
Other long-term liabilities
 
0.6

 

Interest rate swap contracts
 
Other long-term liabilities
 
28.2

 
17.7

Total derivatives designated as hedging instruments
 
 
 
29.8

 
18.4

 
 
 
 
 
 
 
Derivatives NOT designated as hedging instruments:
 
 
 
 
 
 
Foreign currency exchange contracts
 
Accrued expenses and other liabilities
 
7.8

 
0.5

Total derivatives NOT designated as hedging instruments
 
 
 
7.8

 
0.5

 
 
 
 
 
 
 
Total liability derivatives
 
 
 
$
37.6

 
$
18.9

v3.8.0.1
Fair Value of Financial Instruments (Tables)
3 Months Ended
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.

 
 
Fair Value as of
 
 
March 31, 2018
(in millions)
 
Level 1
 
Level 2
 
Level 3
 
Total
Current assets:
 
 

 
 

 
 

 
 

Foreign currency exchange contracts
 
$

 
$
2.0

 
$

 
$
2.0

Commodity contracts
 

 
1.9

 

 
1.9

Interest rate swap contracts
 

 
3.8

 

 
3.8

Total current assets at fair value
 

 
7.7

 

 
7.7

Non-current assets:
 
 
 
 
 
 
 
 
Commodity contracts
 

 
0.3

 

 
0.3

Interest rate swap contracts
 

 
3.3

 

 
3.3

Total non-current assets at fair value
 

 
3.6

 

 
3.6

Total assets at fair value
 
$

 
$
11.3

 
$

 
$
11.3

Current liabilities:
 
 
 
 
 
 
 
 
Foreign currency exchange contracts
 
$

 
$
8.5

 
$

 
$
8.5

Commodity contracts
 

 
0.3

 

 
0.3

Total current liabilities at fair value
 

 
8.8

 

 
8.8

Non-current liabilities:
 
 
 
 
 
 
 
 
Commodity contracts
 

 
0.6

 

 
0.6

Interest rate swap contracts
 

 
28.2

 

 
28.2

Total non-current liabilities at fair value
 

 
28.8

 

 
28.8

Total liabilities at fair value
 
$

 
$
37.6

 
$

 
$
37.6


 
 
Fair Value as of
 
 
December 31, 2017
(in millions)
 
Level 1
 
Level 2
 
Level 3
 
Total
Current assets:
 
 
 
 
 
 
 
 
Foreign currency exchange contracts
 
$

 
$
1.1

 
$

 
$
1.1

Commodity contracts
 

 
1.7

 

 
1.7

Interest rate swap contracts
 

 
1.7

 

 
1.7

Total current assets at fair value
 

 
4.5

 

 
4.5

Non-current assets:
 
 
 
 
 
 
 
 
Commodity contracts
 

 
0.6

 

 
0.6

Interest rate swap contracts
 

 
2.3

 

 
2.3

Total non-current assets at fair value
 

 
2.9

 

 
2.9

Total assets at fair value
 
$

 
$
7.4

 
$

 
$
7.4

Current liabilities:
 
 
 
 
 
 
 
 
Foreign currency exchange contracts
 
$

 
$
1.1

 
$

 
$
1.1

Commodity contracts
 

 
0.1

 

 
0.1

Total current liabilities at fair value
 

 
1.2

 

 
1.2

Non-current liabilities:
 
 
 
 
 
 
 
 
Interest rate swap contracts
 

 
17.7

 

 
17.7

Total non-current liabilities at fair value
 

 
17.7

 

 
17.7

Total liabilities at fair value
 
$

 
$
18.9

 
$

 
$
18.9

v3.8.0.1
Accumulated Other Comprehensive Loss (Tables)
3 Months Ended
Mar. 31, 2018
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:

(in millions)
 
March 31, 2018
 
December 31, 2017
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
)
 
 
$
(29.4
)
 
$
(32.0
)
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:

(in millions)
 
Foreign Currency Translation(1)
 
Gains and Losses on Cash Flow Hedges
 
Pension & Postretirement
 
Total
Balance at December 31, 2017
 
$
4.4

 
$
3.6

 
$
(40.0
)
 
$
(32.0
)
Other comprehensive (loss) income before reclassifications
 
(0.4
)
 
3.4

 

 
3.0

Amounts reclassified out
 

 
(1.0
)
 
0.6

 
(0.4
)
Tax effect
 
0.5

 
(0.4
)
 
(0.1
)
 

Net current period other comprehensive income
 
0.1

 
2.0

 
0.5

 
2.6

Balance at March 31, 2018
 
$
4.5

 
$
5.6

 
$
(39.5
)
 
$
(29.4
)

(in millions)
 
Foreign Currency Translation(1)
 
Gains and Losses on Cash Flow Hedges
 
Pension & Postretirement
 
Total
Balance at December 31, 2016
 
$
(9.8
)
 
$
0.8

 
$
(34.4
)
 
$
(43.4
)
Other comprehensive income (loss) before reclassifications
 
7.0

 
(0.5
)
 

 
6.5

Amounts reclassified out
 

 
(0.4
)
 
0.5

 
0.1

Tax effect
 

 
0.3

 
(0.1
)
 
0.2

Net current period other comprehensive income (loss)
 
7.0

 
(0.6
)
 
0.4

 
6.8

Balance at March 31, 2017
 
$
(2.8
)
 
$
0.2

 
$
(34.0
)
 
$
(36.6
)
(1) Income taxes are not provided for foreign currency translation relating to permanent investments in international subsidiaries, but tax effects within cumulative translation does include the impact of the net investment hedge transaction. Reclassification adjustments are made to avoid double counting in comprehensive income items that are also recorded as part of net income.
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:

 
 
Three Months Ended March 31,
 
 
(in millions)
 
2018
 
2017
 
Recognized Location
Gains (losses) on cash flow hedges:
 
 
 
 
 
 
  Foreign currency exchange contracts
 
$
0.5

 
$
0.2

 
Cost of sales
  Commodity contracts
 
0.5

 
0.2

 
Cost of sales
 
 
1.0

 
0.4

 
Total
 
 
(0.3
)
 
(0.2
)
 
Income taxes
 
 
$
0.7

 
$
0.2

 
Net of tax
Amortization of pension and postretirement items:
 
 
 
 
 
 
  Actuarial losses
 
$
(0.6
)
 
$
(0.5
)
 
See Note 16
 
 
(0.6
)
 
(0.5
)
 
Total before tax
 
 
0.2

 
0.1

 
Income taxes
 
 
$
(0.4
)
 
$
(0.4
)
 
Net of tax
 
 
 
 
 
 
 
Total reclassifications for the period
 
$
0.3

 
$
(0.2
)
 
Net of tax
 
 
 
 
 
 
 
 
 
 
 
 
 
 
v3.8.0.1
Product Warranties (Tables)
3 Months Ended
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:

(in millions)
 
 
Balance at December 31, 2017 (1)
 
$
36.0

Accruals for warranties issued
 
9.9

Settlements made (in cash or in kind)
 
(8.5
)
Currency translation impact
 
0.2

Balance at March 31, 2018 (1)
 
$
37.6

v3.8.0.1
Restructuring (Tables)
3 Months Ended
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:

(in millions)
 
 
Balance at December 31, 2017
 
$
16.1

Restructuring charges
 
0.4

Use of reserve
 
(2.3
)
Balance at March 31, 2018
 
$
14.2



v3.8.0.1
Employee Benefit Plans (Tables)
3 Months Ended
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:

 
 
Three Months Ended March 31,
 
 
2018
 
2017
(in millions)
 
Pension Plans
 
Postretirement
Health and
Other Plans
 
Pension Plans
 
Postretirement
Health and
Other Plans
Interest cost of projected benefit obligation
 
$
1.3

 
$
0.1

 
$
1.3

 
$
0.1

Expected return on assets
 
(1.5
)
 

 
(1.5
)
 

Amortization of actuarial net loss
 
0.6

 

 
0.5

 

Net periodic benefit cost
 
$
0.4

 
$
0.1

 
$
0.3

 
$
0.1


The components of periodic benefit costs are recorded in "Other expense — net" in the consolidated statements of operations.
 
 
 
 
 
 
 
 
 
v3.8.0.1
Business Segments (Tables)
3 Months Ended
Mar. 31, 2018
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: 

 
 
Three Months Ended March 31,
(in millions, except percentage data)
 
2018
 
2017
Net sales:
 
 
 
 
Americas
 
$
280.2

 
$
267.5

EMEA
 
81.0

 
67.8

APAC
 
43.5

 
41.7

Elimination of intersegment sales
 
(54.3
)
 
(49.0
)
Total net sales
 
$
350.4

 
$
328.0

 
 
 
 
 
Segment Adjusted Operating EBITDA:
 
 
 
 
Americas
 
$
47.6

 
$
46.8

EMEA
 
14.1

 
12.8

APAC
 
5.5

 
5.5

Total Segment Adjusted Operating EBITDA
 
67.2

 
65.1

Corporate and unallocated
 
(11.9
)
 
(12.1
)
Amortization expense
 
(7.9
)
 
(7.8
)
Depreciation expense
 
(4.2
)
 
(4.0
)
Transaction costs
 
(1.2
)
 

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
 

 
(3.2
)
Other expense — net
 
(8.5
)
 
(1.8
)
Earnings before income taxes
 
$
12.8

 
$
7.1

 
 
 
 
 
Adjusted Operating EBITDA % by segment (1):
 
 
 
 
Americas
 
17.0
%
 
17.5
%
EMEA
 
17.4
%
 
18.9
%
APAC
 
12.6
%
 
13.2
%
(1) Adjusted Operating EBITDA % in the section above is calculated by dividing Adjusted Operating EBITDA by net sales for each respective segment.
 
 
 
 
 
Net sales by geographic area (2):
 
 
 
 
United States
 
$
223.4

 
$
215.0

Other Americas
 
28.5

 
23.0

EMEA
 
62.1

 
54.0

APAC
 
36.4

 
36.0

Total net sales by geographic area
 
$
350.4

 
$
328.0

(2) Net sales in the section above are attributed to geographic regions based on location of customer.

As of March 31, 2018 and December 31, 2017, total assets by reportable segment are as follows:

(in millions)
 
March 31, 2018
 
December 31, 2017
Total assets by segment:
 
 
 
 
Americas
 
$
1,470.3

 
$
1,445.6

EMEA
 
121.2

 
112.1

APAC
 
121.6

 
128.7

Corporate
 
185.7

 
154.0

Total assets
 
$
1,898.8

 
$
1,840.4

v3.8.0.1
Earnings Per Share (Tables)
3 Months Ended
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:

 
Three Months Ended March 31,
 
2018
 
2017
Weighted average shares outstanding — Basic
139,708,723

 
138,759,075

 
 
 
 
Effect of dilutive securities:
 
 
 
Stock options
736,518

 
867,111

Unvested restricted stock
390,226

 
219,777

Unvested performance share units
135,076

 
585,235

Effect of dilutive securities
1,261,820

 
1,672,123

 
 
 
 
Weighted average shares outstanding — Diluted
140,970,543

 
140,431,198

v3.8.0.1
Subsidiary Guarantors of Senior Notes due 2024 (Tables)
3 Months Ended
Mar. 31, 2018
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Consolidating Statement of Operations
WELBILT, INC.
Consolidating Statement of Operations
(Unaudited)
 
 
Three Months Ended March 31, 2018
(in millions)
 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net sales
 
$

 
$
252.1

 
$
204.2

 
$
(105.9
)
 
$
350.4

Cost of sales
 
0.8

 
191.4

 
137.9

 
(105.9
)
 
224.2

Gross profit
 
(0.8
)
 
60.7

 
66.3

 

 
126.2

Selling, general and administrative expenses
 
8.9

 
37.6

 
29.8

 

 
76.3

Amortization expense
 

 
7.1

 
0.8

 

 
7.9

Separation expense
 
0.1

 

 

 

 
0.1

Restructuring expense
 

 
(0.1
)
 
0.5

 

 
0.4

Gain from impairment or disposal of assets — net
 

 
(0.1
)
 

 

 
(0.1
)
(Loss) earnings from operations
 
(9.8
)
 
16.2

 
35.2

 

 
41.6

Interest expense
 
19.1

 
0.3

 
0.9

 

 
20.3

Other (income) expense — net
 
(3.6
)
 
(2.9
)
 
15.0

 

 
8.5

Equity in earnings (loss) of subsidiaries
 
26.7

 
13.2

 

 
(39.9
)
 

Earnings (loss) before income taxes
 
1.4

 
32.0

 
19.3

 
(39.9
)
 
12.8

Income tax (benefit) expense
 
(11.1
)
 
5.3

 
6.1

 

 
0.3

Net earnings (loss)
 
$
12.5

 
$
26.7

 
$
13.2

 
$
(39.9
)
 
$
12.5

Total other comprehensive income (loss), net of tax
 
2.6

 
0.7

 
1.4

 
(2.1
)
 
2.6

Comprehensive income (loss)
 
$
15.1

 
$
27.4

 
$
14.6

 
$
(42.0
)
 
$
15.1


WELBILT, INC.
Consolidating Statement of Operations
(Unaudited) 
 
 
Three Months Ended March 31, 2017
(in millions)
 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net sales
 
$

 
$
241.4

 
$
173.0

 
$
(86.4
)
 
$
328.0

Cost of sales
 
0.9

 
169.7

 
120.8

 
(86.4
)
 
205.0

Gross profit
 
(0.9
)
 
71.7

 
52.2

 

 
123.0

Selling, general and administrative expenses
 
9.9

 
40.7

 
23.4

 

 
74.0

Amortization expense
 

 
7.1

 
0.7

 

 
7.8

Separation expense
 
0.9

 

 

 

 
0.9

Restructuring expense
 
3.7

 
0.9

 

 

 
4.6

Asset impairment expense
 

 
0.2

 
0.2

 

 
0.4

(Loss) earnings from operations
 
(15.4
)
 
22.8

 
27.9

 

 
35.3

Interest expense
 
22.2

 
0.3

 
0.7

 

 
23.2

Loss on early extinguishment of debt
 
3.2

 

 

 

 
3.2

Other (income) expense — net
 
(2.7
)
 
(5.2
)
 
9.7

 

 
1.8

Equity in earnings (loss) of subsidiaries
 
30.0

 
12.6

 

 
(42.6
)
 

(Loss) earnings before income taxes
 
(8.1
)
 
40.3

 
17.5

 
(42.6
)
 
7.1

Income tax (benefit) expense
 
(13.1
)
 
10.3

 
4.9

 

 
2.1

Net earnings (loss)
 
$
5.0

 
$
30.0

 
$
12.6

 
$
(42.6
)
 
$
5.0

Total other comprehensive income (loss), net of tax
 
6.8

 
4.4

 
3.9

 
(8.3
)
 
6.8

Comprehensive income (loss)
 
$
11.8

 
$
34.4

 
$
16.5

 
$
(50.9
)
 
$
11.8


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



Consolidating Balance Sheet
WELBILT, INC.
Consolidating Balance Sheet
(Unaudited)
 
 
March 31, 2018
(in millions)
 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Assets
 
 

 
 
 
 
 
 
 
 
Current assets:
 
 

 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
10.6

 
$

 
$
143.3

 
$
(0.1
)
 
$
153.8

Restricted cash
 

 

 
0.3

 

 
0.3

Accounts receivable — net
 

 

 
92.1

 
(1.6
)
 
90.5

Inventories — net
 

 
84.5

 
92.9

 

 
177.4

Prepaids and other current assets
 
8.1

 
6.6

 
10.0

 

 
24.7

Total current assets
 
18.7

 
91.1

 
338.6

 
(1.7
)
 
446.7

Property, plant and equipment — net
 
0.5

 
68.5

 
43.6

 

 
112.6

Goodwill
 


 
832.5

 
14.1

 

 
846.6

Other intangible assets — net
 

 
389.2

 
66.5

 

 
455.7

Intercompany long-term note receivable
 

 
20.0

 

 
(20.0
)
 

Due from affiliates
 


 
3,229.6

 

 
(3,229.6
)
 

Investment in subsidiaries
 
4,042.4

 

 

 
(4,042.4
)
 

Other non-current assets
 
10.4

 
4.7

 
31.2

 
(9.1
)
 
37.2

Total assets
 
$
4,072.0

 
$
4,635.6

 
$
494.0

 
$
(7,302.8
)
 
$
1,898.8

Liabilities and equity
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
Accounts payable
 
$
0.2

 
$
59.2

 
$
55.1

 
$
(1.6
)
 
$
112.9

Accrued expenses and other liabilities
 
13.6

 
68.7

 
55.9

 

 
138.2

Current portion of capital leases
 

 
0.5

 
0.2

 

 
0.7

Product warranties
 

 
17.2

 
9.0

 

 
26.2

Total current liabilities
 
13.8

 
145.6

 
120.2

 
(1.6
)
 
278.0

Long-term debt and capital leases
 
1,277.6

 
1.1

 
0.8

 

 
1,279.5

Deferred income taxes
 
72.9

 

 
18.8

 

 
91.7

Pension and postretirement health obligations
 
50.5

 
4.7

 

 
(9.2
)
 
46.0

Intercompany long-term note payable
 
15.7

 

 
4.3

 
(20.0
)
 

Due to affiliates
 
2,466.6

 

 
763.0

 
(3,229.6
)
 

Investment in subsidiaries
 

 
417.6

 

 
(417.6
)
 

Other long-term liabilities
 
42.6

 
24.2

 
4.5

 

 
71.3

Total non-current liabilities
 
3,925.9

 
447.6

 
791.4

 
(3,676.4
)
 
1,488.5

Total equity (deficit):
 
 
 
 
 
 
 
 
 
 
Total equity (deficit)
 
132.3

 
4,042.4

 
(417.6
)
 
(3,624.8
)
 
132.3

Total liabilities and equity
 
$
4,072.0

 
$
4,635.6

 
$
494.0

 
$
(7,302.8
)
 
$
1,898.8

WELBILT, INC.
Consolidating Balance Sheet
(Audited)
 
 
December 31, 2017
(in millions)
 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Assets
 
 

 
 
 
 
 
 
 
 
Current assets:
 
 

 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
8.8

 
$

 
$
120.4

 
$
(0.8
)
 
$
128.4

Restricted cash
 

 

 
0.3

 

 
0.3

Accounts receivable — net
 

 

 
84.7

 
(1.0
)
 
83.7

Inventories — net
 

 
69.8

 
82.5

 

 
152.3

Prepaids and other current assets
 
5.3

 
5.9

 
7.8

 

 
19.0

Total current assets
 
14.1

 
75.7

 
295.7

 
(1.8
)
 
383.7

Property, plant and equipment — net
 
0.5

 
68.7

 
43.0

 

 
112.2

Goodwill
 

 
832.4

 
13.7

 

 
846.1

Other intangible assets — net
 

 
396.3

 
65.1

 

 
461.4

Intercompany long-term note receivable
 

 
20.0

 

 
(20.0
)
 

Due from affiliates
 

 
3,239.8

 

 
(3,239.8
)
 

Investment in subsidiaries
 
4,015.6

 

 

 
(4,015.6
)
 

Other non-current assets
 
10.8

 
5.2

 
28.7

 
(7.7
)
 
37.0

Total assets
 
$
4,041.0

 
$
4,638.1

 
$
446.2

 
$
(7,284.9
)
 
$
1,840.4

Liabilities and equity
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
Accounts payable
 
$
0.2

 
$
58.2

 
$
47.0

 
$
(1.8
)
 
$
103.6

Accrued expenses and other liabilities
 
19.1

 
86.1

 
56.5

 

 
161.7

Current portion of capital leases
 

 
0.5

 
0.2

 

 
0.7

Product warranties
 

 
16.2

 
7.9

 

 
24.1

Total current liabilities
 
19.3

 
161.0

 
111.6

 
(1.8
)
 
290.1

Long-term debt and capital leases
 
1,230.2

 
1.2

 
0.8

 

 
1,232.2

Deferred income taxes
 
74.7

 

 
17.6

 

 
92.3

Pension and postretirement health obligations
 
51.3

 
4.7

 

 
(7.7
)
 
48.3

Intercompany long-term note payable
 
15.7

 

 
4.3

 
(20.0
)
 

Due to affiliates
 
2,501.4

 

 
738.4

 
(3,239.8
)
 

Investment in subsidiaries
 

 
430.8

 

 
(430.8
)
 

Other long-term liabilities
 
38.0

 
24.8

 
4.3

 

 
67.1

Total non-current liabilities
 
3,911.3

 
461.5

 
765.4

 
(3,698.3
)
 
1,439.9

Total equity (deficit):
 
 
 
 
 
 
 
 
 
 
Total equity (deficit)
 
110.4

 
4,015.6

 
(430.8
)
 
(3,584.8
)
 
110.4

Total liabilities and equity
 
$
4,041.0

 
$
4,638.1

 
$
446.2

 
$
(7,284.9
)
 
$
1,840.4

Consolidating Statement of Cash Flows
WELBILT, INC.
Consolidating Statement of Cash Flows
(Unaudited)
 
 
Three Months Ended March 31, 2018
(in millions)
 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Cash flows from operating activities
 
 
 
 
 
 
 
 
 
 
Net cash (used in) provided by operating activities
 
$
(18.7
)
 
$
(8.0
)
 
$
(127.5
)
 
$
0.7

 
$
(153.5
)
Cash flows from investing activities
 
 
 
 
 
 
 
 
 
 
Cash receipts on beneficial interest sold in receivables
 

 

 
131.8

 

 
131.8

Capital expenditures
 
(0.1
)
 
(2.1
)
 
(1.5
)
 

 
(3.7
)
Intercompany investment
 

 
10.2

 
24.6

 
(34.8
)
 

Net cash (used in) provided by investing activities
 
(0.1
)
 
8.1

 
154.9

 
(34.8
)
 
128.1

Cash flows from financing activities
 
 
 
 
 
 
 
 
 
 
Proceeds from long-term debt and capital leases
 
74.0

 

 

 

 
74.0

Repayments on long-term debt and capital leases
 
(19.0
)
 
(0.1
)
 
(0.1
)
 

 
(19.2
)
Debt issuance costs
 
(0.1
)
 

 

 

 
(0.1
)
Exercises of stock options
 
2.5

 

 

 

 
2.5

Payments on tax withholdings for equity awards
 
(2.0
)
 

 

 

 
(2.0
)
Intercompany financing
 
(34.8
)
 

 

 
34.8

 

Net cash provided by (used in) financing activities
 
20.6

 
(0.1
)
 
(0.1
)
 
34.8

 
55.2

Effect of exchange rate changes on cash
 

 

 
(4.4
)
 

 
(4.4
)
Net increase in cash and cash equivalents and restricted cash
 
1.8

 

 
22.9

 
0.7

 
25.4

Balance at beginning of period
 
8.8

 

 
120.7

 
(0.8
)
 
128.7

Balance at end of period
 
$
10.6

 
$

 
$
143.6

 
$
(0.1
)
 
$
154.1

WELBILT, INC.
Consolidating Statement of Cash Flows
(Unaudited) 
 
 
Three Months Ended March 31, 2017
(in millions)
 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Cash flows from operating activities
 
 
 
 
 
 
 
 
 
 
Net cash used in operating activities
 
$
(14.8
)
 
$
(15.6
)
 
$
(134.0
)
 
$

 
$
(164.4
)
Cash flows from investing activities
 
 
 
 
 
 
 
 
 
 
Cash receipts on beneficial interest in sold receivables
 

 

 
115.9

 

 
115.9

Capital expenditures
 
(0.3
)
 
(2.2
)
 
(2.4
)
 

 
(4.9
)
Intercompany investment
 
(58.3
)
 

 

 
58.3

 

Net cash (used in) provided by investing activities
 
(58.6
)
 
(2.2
)
 
113.5

 
58.3

 
111.0

Cash flows from financing activities
 
 
 
 
 
 
 
 
 
 
Proceeds from long-term debt and capital leases
 
78.0

 

 
0.9

 

 
78.9

Repayments on long-term debt and capital leases
 
(1.5
)
 
(0.1
)
 
(0.9
)
 

 
(2.5
)
Debt issuance costs
 
(1.4
)
 

 

 

 
(1.4
)
Changes in short-term borrowings
 

 
0.9

 
4.0

 
(0.9
)
 
4.0

Exercises of stock options
 
0.9

 

 

 

 
0.9

Payments on tax withholdings for equity awards
 
(2.1
)
 

 

 

 
(2.1
)
Intercompany financing
 

 
14.7

 
43.6

 
(58.3
)
 

Net cash provided by (used in) financing activities
 
73.9

 
15.5

 
47.6

 
(59.2
)
 
77.8

Effect of exchange rate changes on cash
 

 

 
(1.8
)
 

 
(1.8
)
Net increase (decrease) in cash and cash equivalents and restricted cash
 
0.5

 
(2.3
)
 
25.3

 
(0.9
)
 
22.6

Balance at beginning of period
 
0.4

 
2.3

 
57.5

 

 
60.2

Balance at end of period
 
$
0.9

 
$

 
$
82.8

 
$
(0.9
)
 
$
82.8



v3.8.0.1
Description of the Business (Details)
3 Months Ended
Mar. 31, 2018
segment
Accounting Policies [Abstract]  
Number of segments 3
v3.8.0.1
Summary of Significant Accounting Policies and Basis of Presentation - Narrative (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Dec. 31, 2017
Dec. 31, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Increase to cash and cash equivalents balance $ 153.8   $ 128.4  
Increase (decrease) to cash flows provided by investing activities 128.1 $ 111.0    
Decrease in cash flow from operating activities (153.5) (164.4)    
Deferred revenue expected to be recognized 6.5   $ 6.7  
Deferred revenue recognized 0.4      
Pension Plans        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Net periodic benefit cost 0.4 0.3    
Postretirement Health and Other Plans        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Net periodic benefit cost $ 0.1 0.1    
Accounting Standards Update 2016-18        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Increase to cash and cash equivalents balance   0.2   $ 6.4
Increase (decrease) to cash flows provided by investing activities   (6.2)    
Accounting Standards Update 2016-15        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Increase (decrease) to cash flows provided by investing activities   115.9    
Decrease in cash flow from operating activities   $ (115.9)    
v3.8.0.1
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  
v3.8.0.1
Summary of Significant Accounting Policies and Basis of Presentation - Schedule of Disaggregation of Revenue by Major Source and Geographic Location (Details)
$ in Millions
3 Months Ended
Mar. 31, 2018
USD ($)
Disaggregation of Revenue [Line Items]  
Total net sales $ 350.4
Commercial Foodservice Whole Goods  
Disaggregation of Revenue [Line Items]  
Total net sales 290.0
Aftermarket Parts and Support  
Disaggregation of Revenue [Line Items]  
Total net sales 60.4
Americas  
Disaggregation of Revenue [Line Items]  
Total net sales 250.0
Americas | Commercial Foodservice Whole Goods  
Disaggregation of Revenue [Line Items]  
Total net sales 209.1
Americas | Aftermarket Parts and Support  
Disaggregation of Revenue [Line Items]  
Total net sales 40.9
EMEA  
Disaggregation of Revenue [Line Items]  
Total net sales 64.1
EMEA | Commercial Foodservice Whole Goods  
Disaggregation of Revenue [Line Items]  
Total net sales 51.7
EMEA | Aftermarket Parts and Support  
Disaggregation of Revenue [Line Items]  
Total net sales 12.4
APAC  
Disaggregation of Revenue [Line Items]  
Total net sales 36.3
APAC | Commercial Foodservice Whole Goods  
Disaggregation of Revenue [Line Items]  
Total net sales 29.2
APAC | Aftermarket Parts and Support  
Disaggregation of Revenue [Line Items]  
Total net sales $ 7.1
v3.8.0.1
Summary of Significant Accounting Policies and Basis of Presentation - Revenue Recognition Narrative (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2018
Dec. 31, 2017
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Deferred revenue expected to be recognized $ 6.5 $ 6.7
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-04-01    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Deferred revenue expected to be recognized $ 3.3  
Deferred revenue, recognition period 9 months  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Deferred revenue expected to be recognized $ 1.4  
Deferred revenue, recognition period 1 year  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Deferred revenue expected to be recognized $ 2.2  
Deferred revenue, recognition period  
v3.8.0.1
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      
v3.8.0.1
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
v3.8.0.1
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
v3.8.0.1
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
v3.8.0.1
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
v3.8.0.1
Debt - Schedule of Outstanding Debt (Details) - USD ($)
$ in Millions
Mar. 31, 2018
Dec. 31, 2017
Debt Instrument [Line Items]    
Total debt and capital leases including current portion $ 1,322.6 $ 1,267.7
Less current portion of capital leases (0.7) (0.7)
Less unamortized debt issuance costs (25.2) (26.4)
Plus: fair value of the interest rate swap (17.2) (8.4)
Long-term debt and capital leases 1,279.5 1,232.2
Outstanding debt issuance costs, net of amortization 27.4 28.6
Outstanding debt issuance costs, revolving credit facility 2.2  
Revolving credit facility    
Debt Instrument [Line Items]    
Total debt and capital leases including current portion 80.0 25.0
Term loan B    
Debt Instrument [Line Items]    
Total debt and capital leases including current portion 815.0 815.0
Senior Notes due 2024    
Debt Instrument [Line Items]    
Total debt and capital leases including current portion $ 425.0 425.0
Interest rate, stated percentage (as a percent) 9.50%  
Capital leases    
Debt Instrument [Line Items]    
Total debt and capital leases including current portion $ 2.6 $ 2.7
v3.8.0.1
Debt - Narrative (Details)
1 Months Ended 3 Months Ended
Apr. 30, 2018
USD ($)
Mar. 31, 2018
USD ($)
Mar. 31, 2017
USD ($)
Sep. 30, 2019
Feb. 28, 2018
Dec. 31, 2017
USD ($)
Mar. 03, 2016
USD ($)
Debt Instrument [Line Items]              
Debt outstanding   $ 1,322,600,000       $ 1,267,700,000  
Loss on early extinguishment of debt   $ 0 $ (3,200,000)        
Consolidated Total Leverage Ratio (less than)   5.25     5.25    
Quarterly reduction to consolidated leverage ratio         0.25    
Scenario, Forecast              
Debt Instrument [Line Items]              
Consolidated Total Leverage Ratio (less than)       4.00      
Capital leases              
Debt Instrument [Line Items]              
Debt outstanding   $ 2,600,000       2,700,000  
Weighted average interest rate (as a percent)   4.16%          
2016 Credit Agreement | Line of Credit              
Debt Instrument [Line Items]              
Line of credit facility             $ 1,200,000,000.0
2016 Credit Agreement | Line of Credit | Term Loan B Facility              
Debt Instrument [Line Items]              
Line of credit facility             975,000,000.0
2016 Credit Agreement | Line of Credit | Revolving credit facility              
Debt Instrument [Line Items]              
Weighted average interest rate (as a percent)   4.80%          
Borrowings outstanding under revolving facility   $ 80,000,000          
Available borrowings   141,700,000          
Highest daily borrowings   95,000,000          
Average borrowings   $ 70,000,000          
Line of credit facility             225,000,000.0
2016 Credit Agreement | Line of Credit | Revolving credit facility | Subsequent Event              
Debt Instrument [Line Items]              
Aggregate revolving commitments increase $ 50,000,000.0            
Line of credit facility $ 275,000,000.0            
2016 Credit Agreement | Line of Credit | Revolving credit facility | LIBOR              
Debt Instrument [Line Items]              
Spreads for LIBOR and prime borrowings (as a percent)   2.25%          
2016 Credit Agreement | Line of Credit | Revolving credit facility | Base Rate              
Debt Instrument [Line Items]              
Spreads for LIBOR and prime borrowings (as a percent)   1.25%          
2016 Credit Agreement | Line of Credit | Letter of Credit              
Debt Instrument [Line Items]              
Borrowings outstanding under revolving facility   $ 3,300,000          
Line of credit facility             20,000,000.0
2016 Credit Agreement | Line of Credit | Bridge Loan              
Debt Instrument [Line Items]              
Line of credit facility             $ 40,000,000.0
Term loan B              
Debt Instrument [Line Items]              
Debt outstanding   $ 815,000,000       815,000,000  
Weighted average interest rate (as a percent)   4.90%          
Income tax benefit     1,000,000        
Term loan B | LIBOR              
Debt Instrument [Line Items]              
Spreads for LIBOR and prime borrowings (as a percent)   2.75%          
Term loan B | Base Rate              
Debt Instrument [Line Items]              
Spreads for LIBOR and prime borrowings (as a percent)   1.00%          
Term loan B | LIBOR Floor              
Debt Instrument [Line Items]              
Spreads for LIBOR and prime borrowings (as a percent)   1.00%          
Term loan B | Reclassification of Debt Issuance Costs              
Debt Instrument [Line Items]              
Loss on early extinguishment of debt     2,700,000        
Term Loan B Facility              
Debt Instrument [Line Items]              
Income tax benefit     1,000,000        
Term Loan B Facility | Reclassification of Debt Issuance Costs              
Debt Instrument [Line Items]              
Loss on early extinguishment of debt     $ 2,700,000        
Senior Notes due 2024              
Debt Instrument [Line Items]              
Debt outstanding   $ 425,000,000       425,000,000  
Weighted average interest rate (as a percent)   9.90%          
Interest rate, stated percentage (as a percent)   9.50%          
Revolving credit facility              
Debt Instrument [Line Items]              
Debt outstanding   $ 80,000,000       $ 25,000,000  
v3.8.0.1
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  
v3.8.0.1
Derivative Financial Instruments - Narrative (Details)
€ in Millions
1 Months Ended 3 Months Ended
Apr. 30, 2018
USD ($)
Jun. 30, 2017
USD ($)
Jun. 30, 2018
USD ($)
Mar. 31, 2018
USD ($)
Mar. 31, 2017
USD ($)
Mar. 31, 2018
EUR (€)
Mar. 31, 2018
USD ($)
Feb. 20, 2018
USD ($)
Feb. 20, 2018
SEK (kr)
Dec. 31, 2017
Oct. 03, 2017
USD ($)
Mar. 31, 2017
EUR (€)
swap
Mar. 31, 2017
USD ($)
swap
Derivative [Line Items]                          
Cash hedge gain to be reclassified in twelve months       $ 1,900,000                  
Minimum length of time hedged in cash flow hedge       15 months                  
Maximum length of time hedged in cash flow hedge       36 months                  
Interest expense       $ 20,300,000 $ 23,200,000                
Cross Currency Interest Rate Contract                          
Derivative [Line Items]                          
Derivative notional amount | €           € 50.0           € 50.0  
Derivative term         3 years                
Foreign currency exchange contracts | Avaj International Holding AB                          
Derivative [Line Items]                          
Derivative notional amount               $ 223,800,000 kr 1,800,000,000        
Short term liability position             $ 7,800,000            
Foreign currency exchange contracts | Avaj International Holding AB | Scenario, Forecast                          
Derivative [Line Items]                          
Incremental loss recognized     $ 2,200,000                    
Foreign currency exchange contracts | Avaj International Holding AB | Subsequent Event                          
Derivative [Line Items]                          
Realized loss on settled derivative $ 10,000,000                        
Not Designated as Hedging Instrument                          
Derivative [Line Items]                          
Incremental loss recognized       12,900,000 $ 300,000                
Designated as Hedging Instrument | Interest rate swap contracts                          
Derivative [Line Items]                          
Number of derivative instruments | swap                       2 2
Derivative notional amount             600,000,000           $ 600,000,000
Company long term debt in hedge (as a percent)                   45.50%      
Interest expense   $ 300,000                      
Interest Rate Swap, March 2019 | Designated as Hedging Instrument | Interest rate swap contracts                          
Derivative [Line Items]                          
Derivative notional amount                         175,000,000
Interest Rate Swap, March 2020 | Designated as Hedging Instrument | Interest rate swap contracts                          
Derivative [Line Items]                          
Derivative notional amount                         $ 425,000,000
Cash received on hedge   $ 7,700,000                      
Interest Rate Swap, February 2024 | Designated as Hedging Instrument | Interest rate swap contracts                          
Derivative [Line Items]                          
Derivative notional amount             $ 425,000,000       $ 425,000,000    
Company long term debt in hedge (as a percent)           32.20% 32.20%            
Hedge ineffectiveness       $ 300,000 $ 0                
v3.8.0.1
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
v3.8.0.1
Derivative Financial Instruments - Schedule of Currency Forward Contracts CAD, EUR, GBP and SGD (Details) - Foreign currency exchange contracts
Mar. 31, 2018
CAD ($)
Mar. 31, 2018
EUR (€)
Mar. 31, 2018
GBP (£)
Mar. 31, 2018
SGD ($)
Dec. 31, 2017
CAD ($)
Dec. 31, 2017
EUR (€)
Dec. 31, 2017
GBP (£)
Dec. 31, 2017
SGD ($)
Canadian Dollar | Designated as Hedging Instrument                
Derivative [Line Items]                
Derivative notional amount $ 21,880,000       $ 18,080,000      
European Euro | Not Designated as Hedging Instrument                
Derivative [Line Items]                
Derivative notional amount | €   € 72,325,720       € 69,300,000    
European Euro | Designated as Hedging Instrument                
Derivative [Line Items]                
Derivative notional amount | €   € 22,150,000       € 8,545,000    
British Pound | Not Designated as Hedging Instrument                
Derivative [Line Items]                
Derivative notional amount | £     £ 2,113,271       £ 14,912,019  
British Pound | Designated as Hedging Instrument                
Derivative [Line Items]                
Derivative notional amount | £     £ 19,462,497       £ 7,807,744  
Singapore Dollar | Not Designated as Hedging Instrument                
Derivative [Line Items]                
Derivative notional amount       $ 28,127,000       $ 28,127,000
Singapore Dollar | Designated as Hedging Instrument                
Derivative [Line Items]                
Derivative notional amount       $ 3,820,000       $ 1,765,000
v3.8.0.1
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    
v3.8.0.1
Derivative Financial Instruments - Schedule of the Effect of Derivative Instruments on the Consolidated Statement of Operations (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Derivative [Line Items]    
Cost of sales $ 224.2 $ 205.0
Interest expense 20.3 23.2
Selling, general and administrative expenses 76.3 74.0
Gains and Losses on Cash Flow Hedges | Net Investment Hedging    
Derivative [Line Items]    
Amount of gain (loss) recognized in AOCI on derivative (effective portion, net of tax) (2.0) 3.3
Selling, general and administrative expenses 0.0 0.0
Gains and Losses on Cash Flow Hedges | Net Investment Hedging | Interest rate swap contracts    
Derivative [Line Items]    
Amount of gain (loss) recognized in AOCI on derivative (effective portion, net of tax) (2.0) 3.3
Selling, general and administrative expenses 0.0 0.0
Gains and Losses on Cash Flow Hedges | Cash Flow Hedging    
Derivative [Line Items]    
Amount of gain (loss) recognized in AOCI on derivative (effective portion, net of tax) 3.4 (0.5)
Gains and Losses on Cash Flow Hedges | Cash Flow Hedging | Foreign currency exchange contracts    
Derivative [Line Items]    
Amount of gain (loss) recognized in AOCI on derivative (effective portion, net of tax) 0.8 0.7
Gains and Losses on Cash Flow Hedges | Cash Flow Hedging | Commodity contracts    
Derivative [Line Items]    
Amount of gain (loss) recognized in AOCI on derivative (effective portion, net of tax) (0.5) 0.4
Gains and Losses on Cash Flow Hedges | Cash Flow Hedging | Interest rate swap contracts    
Derivative [Line Items]    
Amount of gain (loss) recognized in AOCI on derivative (effective portion, net of tax) 3.1 (1.6)
Reclassification out of Accumulated Other Comprehensive Income | Gains and Losses on Cash Flow Hedges    
Derivative [Line Items]    
Cost of sales 1.0 0.4
Reclassification out of Accumulated Other Comprehensive Income | Gains and Losses on Cash Flow Hedges | Foreign currency exchange contracts    
Derivative [Line Items]    
Cost of sales 0.5 0.2
Reclassification out of Accumulated Other Comprehensive Income | Gains and Losses on Cash Flow Hedges | Commodity contracts    
Derivative [Line Items]    
Cost of sales 0.5 0.2
Reclassification out of Accumulated Other Comprehensive Income | Gains and Losses on Cash Flow Hedges | Interest rate swap contracts    
Derivative [Line Items]    
Interest expense 0.0 0.0
Cost of sales | Cash Flow Hedging    
Derivative [Line Items]    
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) 0.1 0.3
Cost of sales | Cash Flow Hedging | Commodity contracts    
Derivative [Line Items]    
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) 0.1 0.3
Not Designated as Hedging Instrument    
Derivative [Line Items]    
Amount of gain (loss) recognized in income on derivative (12.9) (0.3)
Not Designated as Hedging Instrument | Gains and Losses on Cash Flow Hedges | Foreign currency exchange contracts    
Derivative [Line Items]    
Amount of gain (loss) recognized in income on derivative $ (12.9) $ (0.3)
v3.8.0.1
Derivative Financial Instruments - Schedule of Gain or Loss on the Hedged Items (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Derivative Instruments, Gain (Loss) [Line Items]    
Gain (loss) on hedged items $ (8.5) $ (5.7)
Interest Expense    
Derivative Instruments, Gain (Loss) [Line Items]    
Gain (loss) on hedged items 8.8 5.7
Interest rate swap contracts    
Derivative Instruments, Gain (Loss) [Line Items]    
Gain (loss) on hedged items (8.5) (5.7)
Interest rate swap contracts | Interest Expense    
Derivative Instruments, Gain (Loss) [Line Items]    
Gain (loss) on hedged items 8.8 5.7
Cash Flow Hedging | Cost of sales    
Derivative Instruments, Gain (Loss) [Line Items]    
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) 0.1 0.3
Cash Flow Hedging | Commodity contracts | Cost of sales    
Derivative Instruments, Gain (Loss) [Line Items]    
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) 0.1 0.3
Not Designated as Hedging Instrument    
Derivative Instruments, Gain (Loss) [Line Items]    
Amount of gain (loss) recognized in income on derivative (12.9) (0.3)
Gains and Losses on Cash Flow Hedges | Not Designated as Hedging Instrument | Foreign currency exchange contracts    
Derivative Instruments, Gain (Loss) [Line Items]    
Amount of gain (loss) recognized in income on derivative $ (12.9) $ (0.3)
v3.8.0.1
Derivative Financial Instruments - Schedule of the Fair Value of Outstanding Derivative Contracts Recorded as Assets in the Accompanying Consolidated Balance Sheet (Details) - USD ($)
$ in Millions
Mar. 31, 2018
Dec. 31, 2017
Derivative [Line Items]    
Total assets at fair value $ 11.3 $ 7.4
Designated as Hedging Instrument    
Derivative [Line Items]    
Total assets at fair value 10.7 7.4
Not Designated as Hedging Instrument    
Derivative [Line Items]    
Total assets at fair value 0.6 0.0
Prepaids and other current assets | Designated as Hedging Instrument | Foreign currency exchange contracts    
Derivative [Line Items]    
Total assets at fair value 1.4 1.1
Prepaids and other current assets | Designated as Hedging Instrument | Commodity contracts    
Derivative [Line Items]    
Total assets at fair value 1.9 1.7
Prepaids and other current assets | Designated as Hedging Instrument | Interest rate swap contracts    
Derivative [Line Items]    
Total assets at fair value 3.8 1.7
Other non-current assets | Designated as Hedging Instrument | Commodity contracts    
Derivative [Line Items]    
Total assets at fair value 0.3 0.6
Other non-current assets | Designated as Hedging Instrument | Interest rate swap contracts    
Derivative [Line Items]    
Total assets at fair value $ 3.3 $ 2.3
v3.8.0.1
Derivative Financial Instruments - Schedule of the Fair Value of Outstanding Derivative Contracts Recorded as Liabilities in the Accompanying Consolidated Balance Sheet (Details) - USD ($)
$ in Millions
Mar. 31, 2018
Dec. 31, 2017
Derivative [Line Items]    
Total non-current liabilities at fair value $ 37.6 $ 18.9
Designated as Hedging Instrument    
Derivative [Line Items]    
Total non-current liabilities at fair value 29.8 18.4
Not Designated as Hedging Instrument    
Derivative [Line Items]    
Total non-current liabilities at fair value 7.8 0.5
Accrued expenses and other liabilities | Designated as Hedging Instrument | Foreign currency exchange contracts    
Derivative [Line Items]    
Total non-current liabilities at fair value 0.7 0.6
Accrued expenses and other liabilities | Designated as Hedging Instrument | Commodity contracts    
Derivative [Line Items]    
Total non-current liabilities at fair value 0.3 0.1
Accrued expenses and other liabilities | Not Designated as Hedging Instrument | Foreign currency exchange contracts    
Derivative [Line Items]    
Total non-current liabilities at fair value 7.8 0.5
Other long-term liabilities | Designated as Hedging Instrument | Commodity contracts    
Derivative [Line Items]    
Total non-current liabilities at fair value 0.6 0.0
Other long-term liabilities | Not Designated as Hedging Instrument | Commodity contracts    
Derivative [Line Items]    
Total non-current liabilities at fair value $ 28.2 $ 17.7
v3.8.0.1
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
v3.8.0.1
Fair Value of Financial Instruments - Financial Assets and Liabilities Accounted for at Fair Value on a Recurring Basis by Level within the Fair Value Hierarchy (Details) - USD ($)
$ in Millions
Mar. 31, 2018
Dec. 31, 2017
Financial assets and liabilities accounted for at fair value on a recurring basis    
Total assets at fair value $ 11.3 $ 7.4
Total non-current liabilities at fair value 37.6 18.9
Fair value measurement on recurring basis    
Financial assets and liabilities accounted for at fair value on a recurring basis    
Total current assets at fair value 7.7 4.5
Total non-current assets at fair value 3.6 2.9
Total assets at fair value 11.3 7.4
Total current liabilities at fair value 8.8 1.2
Total non-current liabilities at fair value 28.8 17.7
Total liabilities at fair value 37.6 18.9
Fair value measurement on recurring basis | Foreign currency exchange contracts    
Financial assets and liabilities accounted for at fair value on a recurring basis    
Total current assets at fair value 2.0 1.1
Total current liabilities at fair value 8.5 1.1
Fair value measurement on recurring basis | Commodity contracts    
Financial assets and liabilities accounted for at fair value on a recurring basis    
Total current assets at fair value 1.9 1.7
Total non-current assets at fair value 0.3 0.6
Total current liabilities at fair value 0.3 0.1
Total non-current liabilities at fair value 0.6  
Fair value measurement on recurring basis | Interest rate swap contracts    
Financial assets and liabilities accounted for at fair value on a recurring basis    
Total current assets at fair value 3.8 1.7
Total non-current assets at fair value 3.3 2.3
Total non-current liabilities at fair value 28.2  
Fair value measurement on recurring basis | Level 1    
Financial assets and liabilities accounted for at fair value on a recurring basis    
Total current assets at fair value 0.0 0.0
Total non-current assets at fair value 0.0 0.0
Total assets at fair value 0.0 0.0
Total current liabilities at fair value 0.0 0.0
Total non-current liabilities at fair value 0.0 0.0
Total liabilities at fair value 0.0 0.0
Fair value measurement on recurring basis | Level 1 | Foreign currency exchange contracts    
Financial assets and liabilities accounted for at fair value on a recurring basis    
Total current assets at fair value 0.0 0.0
Total current liabilities at fair value 0.0 0.0
Fair value measurement on recurring basis | Level 1 | Commodity contracts    
Financial assets and liabilities accounted for at fair value on a recurring basis    
Total current assets at fair value 0.0 0.0
Total non-current assets at fair value 0.0 0.0
Total current liabilities at fair value 0.0 0.0
Total non-current liabilities at fair value 0.0  
Fair value measurement on recurring basis | Level 1 | Interest rate swap contracts    
Financial assets and liabilities accounted for at fair value on a recurring basis    
Total current assets at fair value 0.0 0.0
Total non-current assets at fair value 0.0 0.0
Total non-current liabilities at fair value 0.0  
Fair value measurement on recurring basis | Level 2    
Financial assets and liabilities accounted for at fair value on a recurring basis    
Total current assets at fair value 7.7 4.5
Total non-current assets at fair value 3.6 2.9
Total assets at fair value 11.3 7.4
Total current liabilities at fair value 8.8 1.2
Total non-current liabilities at fair value 28.8 17.7
Total liabilities at fair value 37.6 18.9
Fair value measurement on recurring basis | Level 2 | Foreign currency exchange contracts    
Financial assets and liabilities accounted for at fair value on a recurring basis    
Total current assets at fair value 2.0 1.1
Total current liabilities at fair value 8.5 1.1
Fair value measurement on recurring basis | Level 2 | Commodity contracts    
Financial assets and liabilities accounted for at fair value on a recurring basis    
Total current assets at fair value 1.9 1.7
Total non-current assets at fair value 0.3 0.6
Total current liabilities at fair value 0.3 0.1
Total non-current liabilities at fair value 0.6  
Fair value measurement on recurring basis | Level 2 | Interest rate swap contracts    
Financial assets and liabilities accounted for at fair value on a recurring basis    
Total current assets at fair value 3.8 1.7
Total non-current assets at fair value 3.3 2.3
Total non-current liabilities at fair value 28.2  
Fair value measurement on recurring basis | Level 3    
Financial assets and liabilities accounted for at fair value on a recurring basis    
Total current assets at fair value 0.0 0.0
Total non-current assets at fair value 0.0 0.0
Total assets at fair value 0.0 0.0
Total current liabilities at fair value 0.0 0.0
Total non-current liabilities at fair value 0.0 0.0
Total liabilities at fair value 0.0 0.0
Fair value measurement on recurring basis | Level 3 | Foreign currency exchange contracts    
Financial assets and liabilities accounted for at fair value on a recurring basis    
Total current assets at fair value 0.0 0.0
Total current liabilities at fair value 0.0 0.0
Fair value measurement on recurring basis | Level 3 | Commodity contracts    
Financial assets and liabilities accounted for at fair value on a recurring basis    
Total current assets at fair value 0.0 0.0
Total non-current assets at fair value 0.0 0.0
Total current liabilities at fair value 0.0 0.0
Total non-current liabilities at fair value 0.0  
Fair value measurement on recurring basis | Level 3 | Interest rate swap contracts    
Financial assets and liabilities accounted for at fair value on a recurring basis    
Total current assets at fair value 0.0 0.0
Total non-current assets at fair value 0.0 $ 0.0
Total non-current liabilities at fair value $ 0.0  
v3.8.0.1
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)  
v3.8.0.1
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
v3.8.0.1
Accumulated Other Comprehensive Loss - Reconciliations for the Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Beginning balance $ 110.4  
Other comprehensive (loss) income before reclassifications 3.0 $ 6.5
Amounts reclassified out (0.4) 0.1
Other Comprehensive Income (Loss), Tax 0.0 0.2
Total other comprehensive income, net of tax 2.6 6.8
Ending balance 132.3  
Foreign Currency Translation    
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Beginning balance 4.4 (9.8)
Other comprehensive (loss) income before reclassifications (0.4) 7.0
Amounts reclassified out 0.0 0.0
Other Comprehensive Income (Loss), Tax 0.5 0.0
Total other comprehensive income, net of tax 0.1 7.0
Ending balance 4.5 (2.8)
Gains and Losses on Cash Flow Hedges    
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Beginning balance 3.6 0.8
Other comprehensive (loss) income before reclassifications 3.4 (0.5)
Amounts reclassified out (1.0) (0.4)
Other Comprehensive Income (Loss), Tax (0.4) 0.3
Total other comprehensive income, net of tax 2.0 (0.6)
Ending balance 5.6 0.2
Pension & Postretirement    
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Beginning balance (40.0) (34.4)
Other comprehensive (loss) income before reclassifications 0.0 0.0
Amounts reclassified out 0.6 0.5
Other Comprehensive Income (Loss), Tax (0.1) (0.1)
Total other comprehensive income, net of tax 0.5 0.4
Ending balance (39.5) (34.0)
Accumulated Other Comprehensive (Loss) Income    
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Beginning balance (32.0) (43.4)
Total other comprehensive income, net of tax 2.6  
Ending balance $ (29.4) $ (36.6)
v3.8.0.1
Accumulated Other Comprehensive Loss - Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]    
Cost of sales $ 224.2 $ 205.0
Total 12.8 7.1
Income taxes (0.3) (2.1)
Net earnings 12.5 5.0
Total reclassifications for the period 0.4 (0.1)
Reclassification out of Accumulated Other Comprehensive Income    
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]    
Total reclassifications for the period 0.3 (0.2)
Gains and Losses on Cash Flow Hedges    
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]    
Total reclassifications for the period 1.0 0.4
Gains and Losses on Cash Flow Hedges | Reclassification out of Accumulated Other Comprehensive Income    
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]    
Cost of sales 1.0 0.4
Total 1.0 0.4
Income taxes (0.3) (0.2)
Net earnings 0.7 0.2
Pension & Postretirement    
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]    
Total reclassifications for the period (0.6) (0.5)
Pension & Postretirement | Reclassification out of Accumulated Other Comprehensive Income    
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]    
Total before tax (0.6) (0.5)
Income taxes 0.2 0.1
Total reclassifications for the period (0.4) (0.4)
Foreign currency exchange contracts | Gains and Losses on Cash Flow Hedges | Reclassification out of Accumulated Other Comprehensive Income    
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]    
Cost of sales 0.5 0.2
Commodity contracts | Gains and Losses on Cash Flow Hedges | Reclassification out of Accumulated Other Comprehensive Income    
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]    
Cost of sales $ 0.5 $ 0.2
v3.8.0.1
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  
v3.8.0.1
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
v3.8.0.1
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
v3.8.0.1
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  
v3.8.0.1
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  
v3.8.0.1
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
v3.8.0.1
Business Segments (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Dec. 31, 2017
Operating earnings (loss) from continuing operations      
Net sales $ 350.4 $ 328.0  
Amortization expense (7.9) (7.8)  
Depreciation (4.2) (4.0)  
Transaction costs (1.2) 0.0  
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  
Assets 1,898.8   $ 1,840.4
United States      
Operating earnings (loss) from continuing operations      
Net sales 223.4 215.0  
Other Americas      
Operating earnings (loss) from continuing operations      
Net sales 28.5 23.0  
EMEA      
Operating earnings (loss) from continuing operations      
Net sales 62.1 54.0  
APAC      
Operating earnings (loss) from continuing operations      
Net sales 36.4 36.0  
Operating Segments      
Operating earnings (loss) from continuing operations      
Earnings before interest, taxes and amortization 67.2 65.1  
Operating Segments | Americas      
Operating earnings (loss) from continuing operations      
Net sales 280.2 267.5  
Earnings before interest, taxes and amortization 47.6 $ 46.8  
Assets $ 1,470.3   1,445.6
Operating Segments | Americas | Geographic Concentration Risk | EBITA      
Operating earnings (loss) from continuing operations      
Operating EBITA (as a percent) 17.00% 17.50%  
Operating Segments | EMEA      
Operating earnings (loss) from continuing operations      
Net sales $ 81.0 $ 67.8  
Earnings before interest, taxes and amortization 14.1 $ 12.8  
Assets $ 121.2   112.1
Operating Segments | EMEA | Geographic Concentration Risk | EBITA      
Operating earnings (loss) from continuing operations      
Operating EBITA (as a percent) 17.40% 18.90%  
Operating Segments | APAC      
Operating earnings (loss) from continuing operations      
Net sales $ 43.5 $ 41.7  
Earnings before interest, taxes and amortization 5.5 $ 5.5  
Assets $ 121.6   128.7
Operating Segments | APAC | Geographic Concentration Risk | EBITA      
Operating earnings (loss) from continuing operations      
Operating EBITA (as a percent) 12.60% 13.20%  
Elimination of intersegment sales      
Operating earnings (loss) from continuing operations      
Net sales $ (54.3) $ (49.0)  
Corporate and unallocated      
Operating earnings (loss) from continuing operations      
Earnings before interest, taxes and amortization (11.9) $ (12.1)  
Assets $ 185.7   $ 154.0
v3.8.0.1
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
v3.8.0.1
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
v3.8.0.1
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%
v3.8.0.1
Subsidiary Guarantors of Senior Notes due 2024 - Consolidating Statement of Operations (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Condensed Consolidating Statement of Operations    
Net sales $ 350.4 $ 328.0
Cost of sales 224.2 205.0
Gross profit 126.2 123.0
Costs and expenses:    
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
Equity in earnings (loss) of subsidiaries 0.0 0.0
Earnings before income taxes 12.8 7.1
Income taxes 0.3 2.1
Net earnings 12.5 5.0
Total other comprehensive income, net of tax 2.6 6.8
Comprehensive income 15.1 11.8
Eliminations    
Condensed Consolidating Statement of Operations    
Net sales (105.9) (86.4)
Cost of sales (105.9) (86.4)
Gross profit 0.0 0.0
Costs and expenses:    
Selling, general and administrative expenses 0.0 0.0
Amortization expense 0.0 0.0
Separation expense 0.0 0.0
Restructuring expense 0.0 0.0
(Gain) loss from impairment or disposal of assets — net 0.0 0.0
Earnings from operations 0.0 0.0
Interest expense 0.0 0.0
Loss on early extinguishment of debt   0.0
Other expense — net 0.0 0.0
Equity in earnings (loss) of subsidiaries (39.9) (42.6)
Earnings before income taxes (39.9) (42.6)
Income taxes 0.0 0.0
Net earnings (39.9) (42.6)
Total other comprehensive income, net of tax (2.1) (8.3)
Comprehensive income (42.0) (50.9)
Parent    
Condensed Consolidating Statement of Operations    
Net sales 0.0 0.0
Cost of sales 0.8 0.9
Gross profit (0.8) (0.9)
Costs and expenses:    
Selling, general and administrative expenses 8.9 9.9
Amortization expense 0.0 0.0
Separation expense 0.1 0.9
Restructuring expense 0.0 3.7
(Gain) loss from impairment or disposal of assets — net 0.0 0.0
Earnings from operations (9.8) (15.4)
Interest expense 19.1 22.2
Loss on early extinguishment of debt   3.2
Other expense — net (3.6) (2.7)
Equity in earnings (loss) of subsidiaries 26.7 30.0
Earnings before income taxes 1.4 (8.1)
Income taxes (11.1) (13.1)
Net earnings 12.5 5.0
Total other comprehensive income, net of tax 2.6 6.8
Comprehensive income 15.1 11.8
Guarantor Subsidiaries    
Condensed Consolidating Statement of Operations    
Net sales 252.1 241.4
Cost of sales 191.4 169.7
Gross profit 60.7 71.7
Costs and expenses:    
Selling, general and administrative expenses 37.6 40.7
Amortization expense 7.1 7.1
Separation expense 0.0 0.0
Restructuring expense (0.1) 0.9
(Gain) loss from impairment or disposal of assets — net (0.1) 0.2
Earnings from operations 16.2 22.8
Interest expense 0.3 0.3
Loss on early extinguishment of debt   0.0
Other expense — net (2.9) (5.2)
Equity in earnings (loss) of subsidiaries 13.2 12.6
Earnings before income taxes 32.0 40.3
Income taxes 5.3 10.3
Net earnings 26.7 30.0
Total other comprehensive income, net of tax 0.7 4.4
Comprehensive income 27.4 34.4
Non- Guarantor Subsidiaries    
Condensed Consolidating Statement of Operations    
Net sales 204.2 173.0
Cost of sales 137.9 120.8
Gross profit 66.3 52.2
Costs and expenses:    
Selling, general and administrative expenses 29.8 23.4
Amortization expense 0.8 0.7
Separation expense 0.0 0.0
Restructuring expense 0.5 0.0
(Gain) loss from impairment or disposal of assets — net 0.0 0.2
Earnings from operations 35.2 27.9
Interest expense 0.9 0.7
Loss on early extinguishment of debt   0.0
Other expense — net 15.0 9.7
Equity in earnings (loss) of subsidiaries 0.0 0.0
Earnings before income taxes 19.3 17.5
Income taxes 6.1 4.9
Net earnings 13.2 12.6
Total other comprehensive income, net of tax 1.4 3.9
Comprehensive income $ 14.6 $ 16.5
v3.8.0.1
Subsidiary Guarantors of Senior Notes due 2024 - Consolidating Balance Sheets (Details) - USD ($)
$ in Millions
Mar. 31, 2018
Jan. 01, 2018
Dec. 31, 2017
Current assets:      
Cash and cash equivalents $ 153.8   $ 128.4
Restricted cash 0.3   0.3
Accounts receivable — net 90.5   83.7
Inventories — net 177.4 $ 153.4 152.3
Prepaids and other current assets 24.7   19.0
Total current assets 446.7   383.7
Property, plant and equipment — net 112.6   112.2
Goodwill 846.6   846.1
Other intangible assets — net 455.7   461.4
Intercompany long-term note receivable 0.0   0.0
Due from affiliates 0.0   0.0
Investment in subsidiaries 0.0   0.0
Other non-current assets 37.2   37.0
Total assets 1,898.8   1,840.4
Current liabilities:      
Accounts payable 112.9   103.6
Accrued expenses and other liabilities 138.2   161.7
Current portion of capital leases 0.7   0.7
Product warranties 26.2   24.1
Total current liabilities 278.0   290.1
Non-Current Liabilities:      
Long-term debt and capital leases 1,279.5   1,232.2
Deferred income taxes 91.7   92.3
Pension and postretirement health obligations 46.0   48.3
Intercompany long-term note payable 0.0   0.0
Due to affiliates 0.0   0.0
Investment in subsidiaries 0.0   0.0
Other long-term liabilities 71.3   67.1
Total non-current liabilities 1,488.5   1,439.9
Total equity 132.3   110.4
Total liabilities and equity 1,898.8   1,840.4
Eliminations      
Current assets:      
Cash and cash equivalents (0.1)   (0.8)
Restricted cash 0.0   0.0
Accounts receivable — net (1.6)   (1.0)
Inventories — net 0.0   0.0
Prepaids and other current assets 0.0    
Total current assets (1.7)   (1.8)
Property, plant and equipment — net 0.0   0.0
Goodwill 0.0   0.0
Other intangible assets — net 0.0   0.0
Intercompany long-term note receivable (20.0)   (20.0)
Due from affiliates (3,229.6)   (3,239.8)
Investment in subsidiaries (4,042.4)   (4,015.6)
Other non-current assets (9.1)   (7.7)
Total assets (7,302.8)   (7,284.9)
Current liabilities:      
Accounts payable (1.6)   (1.8)
Accrued expenses and other liabilities 0.0   0.0
Current portion of capital leases 0.0   0.0
Product warranties 0.0   0.0
Total current liabilities (1.6)   (1.8)
Non-Current Liabilities:      
Long-term debt and capital leases 0.0   0.0
Deferred income taxes 0.0   0.0
Pension and postretirement health obligations (9.2)   (7.7)
Intercompany long-term note payable (20.0)   (20.0)
Due to affiliates (3,229.6)   (3,239.8)
Investment in subsidiaries (417.6)   (430.8)
Other long-term liabilities 0.0   0.0
Total non-current liabilities (3,676.4)   (3,698.3)
Total equity (3,624.8)   (3,584.8)
Total liabilities and equity (7,302.8)   (7,284.9)
Parent      
Current assets:      
Cash and cash equivalents 10.6   8.8
Restricted cash 0.0   0.0
Accounts receivable — net 0.0   0.0
Inventories — net 0.0   0.0
Prepaids and other current assets 8.1   5.3
Total current assets 18.7   14.1
Property, plant and equipment — net 0.5   0.5
Goodwill   0.0
Other intangible assets — net 0.0   0.0
Intercompany long-term note receivable 0.0   0.0
Due from affiliates   0.0
Investment in subsidiaries 4,042.4   4,015.6
Other non-current assets 10.4   10.8
Total assets 4,072.0   4,041.0
Current liabilities:      
Accounts payable 0.2   0.2
Accrued expenses and other liabilities 13.6   19.1
Current portion of capital leases 0.0   0.0
Product warranties 0.0   0.0
Total current liabilities 13.8   19.3
Non-Current Liabilities:      
Long-term debt and capital leases 1,277.6   1,230.2
Deferred income taxes 72.9   74.7
Pension and postretirement health obligations 50.5   51.3
Intercompany long-term note payable 15.7   15.7
Due to affiliates 2,466.6   2,501.4
Investment in subsidiaries 0.0   0.0
Other long-term liabilities 42.6   38.0
Total non-current liabilities 3,925.9   3,911.3
Total equity 132.3   110.4
Total liabilities and equity 4,072.0   4,041.0
Guarantor Subsidiaries      
Current assets:      
Cash and cash equivalents 0.0   0.0
Restricted cash 0.0   0.0
Accounts receivable — net 0.0   0.0
Inventories — net 84.5   69.8
Prepaids and other current assets 6.6   5.9
Total current assets 91.1   75.7
Property, plant and equipment — net 68.5   68.7
Goodwill 832.5   832.4
Other intangible assets — net 389.2   396.3
Intercompany long-term note receivable 20.0   20.0
Due from affiliates 3,229.6   3,239.8
Investment in subsidiaries 0.0   0.0
Other non-current assets 4.7   5.2
Total assets 4,635.6   4,638.1
Current liabilities:      
Accounts payable 59.2   58.2
Accrued expenses and other liabilities 68.7   86.1
Current portion of capital leases 0.5   0.5
Product warranties 17.2   16.2
Total current liabilities 145.6   161.0
Non-Current Liabilities:      
Long-term debt and capital leases 1.1   1.2
Deferred income taxes 0.0   0.0
Pension and postretirement health obligations 4.7   4.7
Intercompany long-term note payable 0.0   0.0
Due to affiliates 0.0   0.0
Investment in subsidiaries 417.6   430.8
Other long-term liabilities 24.2   24.8
Total non-current liabilities 447.6   461.5
Total equity 4,042.4   4,015.6
Total liabilities and equity 4,635.6   4,638.1
Non- Guarantor Subsidiaries      
Current assets:      
Cash and cash equivalents 143.3   120.4
Restricted cash 0.3   0.3
Accounts receivable — net 92.1   84.7
Inventories — net 92.9   82.5
Prepaids and other current assets 10.0   7.8
Total current assets 338.6   295.7
Property, plant and equipment — net 43.6   43.0
Goodwill 14.1   13.7
Other intangible assets — net 66.5   65.1
Intercompany long-term note receivable 0.0   0.0
Due from affiliates 0.0   0.0
Investment in subsidiaries 0.0   0.0
Other non-current assets 31.2   28.7
Total assets 494.0   446.2
Current liabilities:      
Accounts payable 55.1   47.0
Accrued expenses and other liabilities 55.9   56.5
Current portion of capital leases 0.2   0.2
Product warranties 9.0   7.9
Total current liabilities 120.2   111.6
Non-Current Liabilities:      
Long-term debt and capital leases 0.8   0.8
Deferred income taxes 18.8   17.6
Pension and postretirement health obligations 0.0   0.0
Intercompany long-term note payable 4.3   4.3
Due to affiliates 763.0   738.4
Investment in subsidiaries 0.0   0.0
Other long-term liabilities 4.5   4.3
Total non-current liabilities 791.4   765.4
Total equity (417.6)   (430.8)
Total liabilities and equity $ 494.0   $ 446.2
v3.8.0.1
Subsidiary Guarantors of Senior Notes due 2024 - Consolidating Statement of Cash Flows (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Condensed consolidating statement of cash flows    
Net cash (used in) provided by operating activities $ (153.5) $ (164.4)
Cash flows from investing activities    
Cash receipts on beneficial interest in sold receivables 131.8 115.9
Capital expenditures (3.7) (4.9)
Intercompany investment 0.0 0.0
Net cash provided by investing activities 128.1 111.0
Cash flows from financing activities    
Proceeds from long-term debt and capital leases 74.0 78.9
Repayments on long-term debt and capital leases (19.2) (2.5)
Debt issuance costs (0.1) (1.4)
Changes in short-term borrowings   4.0
Exercises of stock options 2.5 0.9
Payments on tax withholdings for equity awards (2.0) (2.1)
Intercompany financing 0.0 0.0
Net cash provided by financing activities 55.2 77.8
Effect of exchange rate changes on cash (4.4) (1.8)
Net increase in cash and cash equivalents and restricted cash 25.4 22.6
Balance at beginning of period 128.7 60.2
Balance at end of period 154.1 82.8
Eliminations    
Condensed consolidating statement of cash flows    
Net cash (used in) provided by operating activities 0.7 0.0
Cash flows from investing activities    
Cash receipts on beneficial interest in sold receivables 0.0 0.0
Capital expenditures 0.0 0.0
Intercompany investment (34.8) 58.3
Net cash provided by investing activities (34.8) 58.3
Cash flows from financing activities    
Proceeds from long-term debt and capital leases 0.0 0.0
Repayments on long-term debt and capital leases 0.0 0.0
Debt issuance costs 0.0 0.0
Changes in short-term borrowings   (0.9)
Exercises of stock options 0.0 0.0
Payments on tax withholdings for equity awards 0.0 0.0
Intercompany financing 34.8 (58.3)
Net cash provided by financing activities 34.8 (59.2)
Effect of exchange rate changes on cash 0.0 0.0
Net increase in cash and cash equivalents and restricted cash 0.7 (0.9)
Balance at beginning of period (0.8) 0.0
Balance at end of period (0.1) (0.9)
Parent    
Condensed consolidating statement of cash flows    
Net cash (used in) provided by operating activities (18.7) (14.8)
Cash flows from investing activities    
Cash receipts on beneficial interest in sold receivables 0.0 0.0
Capital expenditures (0.1) (0.3)
Intercompany investment 0.0 (58.3)
Net cash provided by investing activities (0.1) (58.6)
Cash flows from financing activities    
Proceeds from long-term debt and capital leases 74.0 78.0
Repayments on long-term debt and capital leases (19.0) (1.5)
Debt issuance costs (0.1) (1.4)
Changes in short-term borrowings   0.0
Exercises of stock options 2.5 0.9
Payments on tax withholdings for equity awards (2.0) (2.1)
Intercompany financing (34.8) 0.0
Net cash provided by financing activities 20.6 73.9
Effect of exchange rate changes on cash 0.0 0.0
Net increase in cash and cash equivalents and restricted cash 1.8 0.5
Balance at beginning of period 8.8 0.4
Balance at end of period 10.6 0.9
Guarantor Subsidiaries    
Condensed consolidating statement of cash flows    
Net cash (used in) provided by operating activities (8.0) (15.6)
Cash flows from investing activities    
Cash receipts on beneficial interest in sold receivables 0.0 0.0
Capital expenditures (2.1) (2.2)
Intercompany investment 10.2 0.0
Net cash provided by investing activities 8.1 (2.2)
Cash flows from financing activities    
Proceeds from long-term debt and capital leases 0.0 0.0
Repayments on long-term debt and capital leases (0.1) (0.1)
Debt issuance costs 0.0 0.0
Changes in short-term borrowings   0.9
Exercises of stock options 0.0 0.0
Payments on tax withholdings for equity awards 0.0 0.0
Intercompany financing 0.0 14.7
Net cash provided by financing activities (0.1) 15.5
Effect of exchange rate changes on cash 0.0 0.0
Net increase in cash and cash equivalents and restricted cash 0.0 (2.3)
Balance at beginning of period 0.0 2.3
Balance at end of period 0.0 0.0
Non- Guarantor Subsidiaries    
Condensed consolidating statement of cash flows    
Net cash (used in) provided by operating activities (127.5) (134.0)
Cash flows from investing activities    
Cash receipts on beneficial interest in sold receivables 131.8 115.9
Capital expenditures (1.5) (2.4)
Intercompany investment 24.6 0.0
Net cash provided by investing activities 154.9 113.5
Cash flows from financing activities    
Proceeds from long-term debt and capital leases 0.0 0.9
Repayments on long-term debt and capital leases (0.1) (0.9)
Debt issuance costs 0.0 0.0
Changes in short-term borrowings   4.0
Exercises of stock options 0.0 0.0
Payments on tax withholdings for equity awards 0.0 0.0
Intercompany financing 0.0 43.6
Net cash provided by financing activities (0.1) 47.6
Effect of exchange rate changes on cash (4.4) (1.8)
Net increase in cash and cash equivalents and restricted cash 22.9 25.3
Balance at beginning of period 120.7 57.5
Balance at end of period $ 143.6 $ 82.8