|
|
|
|
|
|
|
|
• | "Welbilt" and the "Company" refer to Welbilt, Inc. and its consolidated subsidiaries, after giving effect to the Spin-Off, or, in the case of information as of dates or for periods prior to its separation from MTW, the combined entities of the Foodservice business, and certain other assets and liabilities that were historically held at the MTW corporate level, but were specifically identifiable and attributable to the Foodservice business; and |
• | "MTW" refers to The Manitowoc Company, Inc. and its consolidated subsidiaries, other than, for all periods following the Spin-Off, Welbilt. |
|
|
Fair Value as of | ||||||||||||||||
September 30, 2017 | ||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Current assets: | ||||||||||||||||
Foreign currency exchange contracts | $ | — | $ | 2.7 | $ | — | $ | 2.7 | ||||||||
Commodity contracts | — | 1.2 | — | 1.2 | ||||||||||||
Cross-currency swap contract | — | 1.1 | — | 1.1 | ||||||||||||
Total current assets at fair value | — | 5.0 | — | 5.0 | ||||||||||||
Non-current assets: | ||||||||||||||||
Commodity contracts | — | 0.5 | — | 0.5 | ||||||||||||
Interest rate swap contracts | — | 0.4 | — | 0.4 | ||||||||||||
Total non-current assets at fair value | — | 0.9 | — | 0.9 | ||||||||||||
Total assets at fair value | $ | — | $ | 5.9 | $ | — | $ | 5.9 | ||||||||
Current liabilities: | ||||||||||||||||
Foreign currency exchange contracts | $ | — | $ | 1.5 | $ | — | $ | 1.5 | ||||||||
Commodity contracts | — | 0.1 | — | 0.1 | ||||||||||||
Interest rate swap contracts | — | 1.3 | — | 1.3 | ||||||||||||
Total current liabilities at fair value | — | 2.9 | — | 2.9 | ||||||||||||
Non-current liabilities: | ||||||||||||||||
Cross-currency swap contract | — | 7.5 | — | 7.5 | ||||||||||||
Total non-current liabilities at fair value | — | 7.5 | — | 7.5 | ||||||||||||
Total liabilities at fair value | $ | — | $ | 10.4 | $ | — | $ | 10.4 |
Fair Value as of | ||||||||||||||||
December 31, 2016 | ||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Current assets: | ||||||||||||||||
Foreign currency exchange contracts | $ | — | $ | 0.6 | $ | — | $ | 0.6 | ||||||||
Commodity contracts | — | 0.9 | — | 0.9 | ||||||||||||
Total current assets at fair value | — | 1.5 | — | 1.5 | ||||||||||||
Non-current assets: | ||||||||||||||||
Commodity contracts | — | 0.2 | — | 0.2 | ||||||||||||
Total non-current assets at fair value | — | 0.2 | — | 0.2 | ||||||||||||
Total assets at fair value | $ | — | $ | 1.7 | $ | — | $ | 1.7 | ||||||||
Current liabilities: | ||||||||||||||||
Foreign currency exchange contracts | $ | — | $ | 1.0 | $ | — | $ | 1.0 | ||||||||
Commodity contracts | — | 0.1 | — | 0.1 | ||||||||||||
Total current liabilities at fair value | — | 1.1 | — | 1.1 | ||||||||||||
Total liabilities at fair value | $ | — | $ | 1.1 | $ | — | $ | 1.1 |
Level 1 | Unadjusted quoted prices in active markets for identical assets or liabilities |
Level 2 | Unadjusted quoted prices in active markets for similar assets or liabilities, or |
Level 3 | Unobservable inputs for the asset or liability |
|
Units Hedged | ||||||||||
Commodity | September 30, 2017 | December 31, 2016 | Unit | Type | ||||||
Aluminum | 1,855 | 1,663 | MT | Cash flow | ||||||
Copper | 759 | 746 | MT | Cash flow | ||||||
Natural gas | 12,400 | 56,416 | MMBtu | Cash flow | ||||||
Steel | 10,453 | 8,663 | Short tons | Cash flow |
Units Hedged | ||||||||
Currency | September 30, 2017 | December 31, 2016 | Type | |||||
Canadian Dollar | 34,180,000 | 26,130,000 | Cash flow | |||||
European Euro | 14,580,560 | 11,261,848 | Cash flow | |||||
British Pound | 13,586,529 | 4,191,763 | Cash flow | |||||
Mexican Peso | 181,600,000 | 148,200,000 | Cash flow | |||||
Thailand Baht | 2,322,970 | 23,231,639 | Cash flow | |||||
Singapore Dollar | 3,280,000 | 4,375,000 | Cash flow |
Units Hedged | ||||||||||
Commodity | September 30, 2017 | December 31, 2016 | Unit | Type | ||||||
Aluminum | — | 28 | MT | Cash flow | ||||||
Steel | — | 340 | Short tons | Cash flow |
Units Hedged | ||||||||
Currency | September 30, 2017 | December 31, 2016 | Purpose | |||||
Singapore Dollar | 28,127,000 | — | Notes payable and receivable settlement | |||||
European Euro | 71,300,000 | 16,000,000 | Notes and accounts payable and receivable settlement | |||||
British Pound | 13,414,816 | 8,192,692 | Accounts payable and receivable settlement | |||||
Chinese Yuan | 65,767,259 | — | Notes payable and receivable settlement | |||||
Swiss Franc | 4,800,000 | 3,150,000 | Accounts payable and receivable settlement |
Asset Derivatives | ||||||||||
(in millions) | Balance Sheet Location | Fair Value | ||||||||
September 30, 2017 | December 31, 2016 | |||||||||
Derivatives designated as hedging instruments: | ||||||||||
Foreign currency exchange contracts | Prepaids and other current assets | $ | 2.7 | $ | 0.6 | |||||
Commodity contracts | Prepaids and other current assets | 1.2 | 0.9 | |||||||
Cross-currency swap contract | Prepaids and other current assets | 1.1 | — | |||||||
Commodity contracts | Other non-current assets | 0.5 | 0.2 | |||||||
Interest rate swap contracts | Other non-current assets | 0.4 | — | |||||||
Total derivatives designated as hedging instruments | 5.9 | 1.7 | ||||||||
Total asset derivatives | $ | 5.9 | $ | 1.7 |
Liability Derivatives | ||||||||||
(in millions) | Balance Sheet Location | Fair Value | ||||||||
September 30, 2017 | December 31, 2016 | |||||||||
Derivatives designated as hedging instruments: | ||||||||||
Foreign currency exchange contracts | Accrued expenses and other liabilities | $ | 0.5 | $ | 0.8 | |||||
Commodity contracts | Accrued expenses and other liabilities | 0.1 | 0.1 | |||||||
Interest rate swap contracts | Accrued expenses and other liabilities | 1.3 | — | |||||||
Cross-currency swap contract | Other long-term liabilities | 7.5 | — | |||||||
Total derivatives designated as hedging instruments | 9.4 | 0.9 | ||||||||
Derivatives NOT designated as hedging instruments: | ||||||||||
Foreign currency exchange contracts | Accrued expenses and other liabilities | 1.0 | 0.2 | |||||||
Total derivatives NOT designated as hedging instruments | 1.0 | 0.2 | ||||||||
Total liability derivatives | $ | 10.4 | $ | 1.1 |
Derivatives in cash flow hedging relationships (in millions) | Amount of gain (loss) recognized in AOCI on derivative (effective portion, net of tax) | 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 September 30, | Three Months Ended September 30, | |||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||
Foreign currency exchange contracts | $ | 1.0 | $ | (0.3 | ) | Cost of sales | $ | 1.6 | $ | 0.4 | ||||||||
Commodity contracts | 0.5 | — | Cost of sales | 0.4 | (0.2 | ) | ||||||||||||
Interest rate swap contracts | 0.5 | — | Interest expense | — | — | |||||||||||||
Cross-currency swap contract (1) | (5.8 | ) | — | Selling, general and administrative expense | — | — | ||||||||||||
Total | $ | (3.8 | ) | $ | (0.3 | ) | $ | 2.0 | $ | 0.2 |
Derivatives in cash flow hedging relationships (in millions) | Amount of gain (loss) recognized in AOCI on derivative (effective portion, net of tax) | Location of gain (loss) reclassified from AOCI into income (effective portion) | Amount of gain (loss) reclassified from AOCI into income (effective portion) | |||||||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||
Foreign currency exchange contracts | $ | 2.5 | $ | 0.4 | Cost of sales | $ | 2.3 | $ | 0.3 | |||||||||
Commodity contracts | 0.5 | 1.7 | Cost of sales | 0.8 | (1.4 | ) | ||||||||||||
Interest rate swap contracts | (0.6 | ) | — | Interest expense | — | — | ||||||||||||
Cross-currency swap contract (1) | (3.9 | ) | — | Selling, general and administrative expense | — | — | ||||||||||||
Total | $ | (1.5 | ) | $ | 2.1 | $ | 3.1 | $ | (1.1 | ) |
Derivatives 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 September 30, | ||||||||||
2017 | 2016 | |||||||||
Commodity contracts | $ | (0.1 | ) | $ | — | Cost of sales | ||||
Total | $ | (0.1 | ) | $ | — |
Derivatives 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) | ||||||||
Nine Months Ended September 30, | ||||||||||
2017 | 2016 | |||||||||
Commodity contracts | $ | 0.1 | $ | — | Cost of sales | |||||
Total | $ | 0.1 | $ | — |
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 September 30, | ||||||||||
2017 | 2016 | |||||||||
Foreign currency exchange contracts | $ | (0.5 | ) | $ | 0.6 | Other expense (income) — net | ||||
Total | $ | (0.5 | ) | $ | 0.6 |
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 | ||||||||
Nine Months Ended September 30, | ||||||||||
2017 | 2016 | |||||||||
Foreign currency exchange contracts | $ | (4.9 | ) | $ | — | Other expense (income) — net | ||||
Commodity contracts | — | 0.7 | Other expense (income) — net | |||||||
Total | $ | (4.9 | ) | $ | 0.7 |
|
September 30, | December 31, | |||||||
(in millions) | 2017 | 2016 | ||||||
Inventories — gross: | ||||||||
Raw materials | $ | 74.6 | $ | 68.2 | ||||
Work-in-process | 22.3 | 18.3 | ||||||
Finished goods | 101.7 | 85.1 | ||||||
Total inventories — gross | 198.6 | 171.6 | ||||||
Excess and obsolete inventory reserve | (26.0 | ) | (22.5 | ) | ||||
Net inventories at FIFO cost | 172.6 | 149.1 | ||||||
Excess of FIFO costs over LIFO value | (3.5 | ) | (3.5 | ) | ||||
Inventories — net | $ | 169.1 | $ | 145.6 |
|
September 30, | December 31, | |||||||
(in millions) | 2017 | 2016 | ||||||
Land | $ | 9.4 | $ | 7.3 | ||||
Building and improvements | 86.6 | 91.3 | ||||||
Machinery, equipment and tooling | 230.1 | 215.1 | ||||||
Furniture and fixtures | 5.9 | 5.8 | ||||||
Computer hardware and software | 55.1 | 52.9 | ||||||
Construction in progress | 13.6 | 11.2 | ||||||
Total cost | 400.7 | 383.6 | ||||||
Less accumulated depreciation | (290.2 | ) | (274.5 | ) | ||||
Property, plant and equipment — net | $ | 110.5 | $ | 109.1 |
|
(in millions) | Americas | EMEA | APAC | Total | ||||||||||||
Balance as of December 31, 2016 | $ | 832.6 | $ | 4.7 | $ | 8.0 | $ | 845.3 | ||||||||
Foreign currency translation impact | (0.1 | ) | 0.3 | 0.5 | 0.7 | |||||||||||
Balance as of September 30, 2017 | $ | 832.5 | $ | 5.0 | $ | 8.5 | $ | 846.0 |
September 30, 2017 | December 31, 2016 | |||||||||||||||||||||||
(in millions) | Gross Carrying Amount | Accumulated Amortization Amount | Net Book Value | Gross Carrying Amount | Accumulated Amortization Amount | Net Book Value | ||||||||||||||||||
Trademarks and tradenames | $ | 177.0 | $ | — | 177.0 | $ | 172.4 | $ | — | $ | 172.4 | |||||||||||||
Customer relationships | 415.3 | (187.1 | ) | 228.2 | 415.2 | (171.4 | ) | 243.8 | ||||||||||||||||
Patents | 1.7 | (1.7 | ) | — | 1.6 | (1.6 | ) | — | ||||||||||||||||
Other intangibles | 144.5 | (82.3 | ) | 62.2 | 140.7 | (72.5 | ) | 68.2 | ||||||||||||||||
Total | $ | 738.5 | $ | (271.1 | ) | $ | 467.4 | $ | 729.9 | $ | (245.5 | ) | $ | 484.4 |
|
September 30, | December 31, | |||||||
(in millions) | 2017 | 2016 | ||||||
Accounts payable: | ||||||||
Trade accounts payable | $ | 108.1 | $ | 108.4 | ||||
Total accounts payable | $ | 108.1 | $ | 108.4 | ||||
Accrued expenses and other liabilities: | ||||||||
Interest payable | $ | 5.5 | $ | 15.7 | ||||
Income taxes payable | 9.8 | 2.5 | ||||||
Employee related expenses | 29.6 | 29.8 | ||||||
Restructuring expenses | 5.9 | 3.3 | ||||||
Profit sharing and incentives | 15.7 | 14.2 | ||||||
Accrued rebates | 44.0 | 56.0 | ||||||
Deferred revenue - current | 3.3 | 4.4 | ||||||
Customer advances | 3.6 | 7.4 | ||||||
Product liability | 2.0 | 2.3 | ||||||
Miscellaneous accrued expenses | 43.5 | 38.9 | ||||||
Total accrued expenses and other liabilities | $ | 162.9 | $ | 174.5 |
|
|
Fiscal Quarter Ending | Consolidated Total Leverage Ratio (less than) | Actual Consolidated Total Leverage Ratio | Consolidated Interest Coverage Ratio (greater than) | Actual Consolidated Interest Coverage Ratio | ||||
September 30, 2017 | 5.00:1.00 | 4.82:1.00 | 2.75:1.00 | 3.06:1.00 |
Year | Percentage | ||
2019 | 107.1 | % | |
2020 | 104.8 | % | |
2021 | 102.4 | % | |
2022 and thereafter | 100.0 | % |
September 30, | December 31, | |||||||
(in millions) | 2017 | 2016 | ||||||
Revolving credit facility | $ | 80.0 | $ | 63.5 | ||||
Term Loan B | 815.0 | 825.0 | ||||||
Senior Notes due 2024 | 425.0 | 425.0 | ||||||
Other | 6.9 | 3.3 | ||||||
Total debt and capital leases, including current portion | 1,326.9 | 1,316.8 | ||||||
Less: current portion and short-term borrowings | (4.5 | ) | (1.6 | ) | ||||
Less: unamortized debt issuance costs and debt discount | (30.1 | ) | (36.5 | ) | ||||
Plus: fair value of the interest rate swap | 0.3 | — | ||||||
Total long-term debt and capital leases | $ | 1,292.6 | $ | 1,278.7 |
|
|
(in millions, except share data) | Shares | Common Stock | Additional Paid-In Capital (Deficit) | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Total Equity (Deficit) | |||||||||||||||||
Balance at December 31, 2016 | 138,601,327 | $ | 1.4 | $ | (72.0 | ) | $ | 70.5 | $ | (43.4 | ) | $ | (43.5 | ) | |||||||||
Net earnings | — | — | — | 68.2 | — | 68.2 | |||||||||||||||||
Issuance of common stock, equity-based compensation plans | 710,972 | — | 3.2 | — | — | 3.2 | |||||||||||||||||
Stock-based compensation expense | — | — | 9.2 | — | — | 9.2 | |||||||||||||||||
Separation related adjustment (1) | — | — | (7.2 | ) | — | — | (7.2 | ) | |||||||||||||||
Other comprehensive income ("OCI") | — | — | — | — | 14.1 | 14.1 | |||||||||||||||||
Balance at September 30, 2017 | 139,312,299 | $ | 1.4 | $ | (66.8 | ) | $ | 138.7 | $ | (29.3 | ) | $ | 44.0 | ||||||||||
(1) See Note 11, "Income Taxes," for discussion of the separation related adjustment. |
(in millions) | Foreign Currency Translation | Gains and Losses on Cash Flow Hedges | Pension & Postretirement | Total | ||||||||||||
Balance at December 31, 2016 | $ | (9.8 | ) | $ | 0.8 | $ | (34.4 | ) | $ | (43.4 | ) | |||||
OCI before reclassifications | 7.0 | (a) | (0.4 | ) | — | 6.6 | ||||||||||
Amounts reclassified from AOCI | — | (0.2 | ) | 0.4 | 0.2 | |||||||||||
Net current period OCI | 7.0 | (0.6 | ) | 0.4 | 6.8 | |||||||||||
Balance at March 31, 2017 | $ | (2.8 | ) | $ | 0.2 | $ | (34.0 | ) | $ | (36.6 | ) | |||||
OCI before reclassifications | $ | 3.7 | (a) | $ | 1.1 | $ | — | $ | 4.8 | |||||||
Amounts reclassified from AOCI | — | (0.4 | ) | 0.4 | — | |||||||||||
Net current period OCI | 3.7 | 0.7 | 0.4 | 4.8 | ||||||||||||
Balance at June 30, 2017 | $ | 0.9 | $ | 0.9 | $ | (33.6 | ) | $ | (31.8 | ) | ||||||
OCI before reclassifications | $ | 1.4 | (a) | $ | 2.0 | $ | — | $ | 3.4 | |||||||
Amounts reclassified from AOCI | — | (1.2 | ) | 0.3 | (0.9 | ) | ||||||||||
Net current period OCI | 1.4 | 0.8 | 0.3 | 2.5 | ||||||||||||
Balance at September 30, 2017 | $ | 2.3 | $ | 1.7 | $ | (33.3 | ) | $ | (29.3 | ) |
(in millions) | Foreign Currency Translation | Gains and Losses on Cash Flow Hedges | Pension & Postretirement | Total | ||||||||||||
Balance at December 31, 2015 | $ | (7.9 | ) | $ | (1.8 | ) | $ | (34.8 | ) | $ | (44.5 | ) | ||||
OCI before reclassifications | 17.2 | 0.3 | (9.4 | ) | 8.1 | |||||||||||
Amounts reclassified from AOCI | — | 0.6 | 0.5 | 1.1 | ||||||||||||
Net current period OCI | 17.2 | 0.9 | (8.9 | ) | 9.2 | |||||||||||
Balance at March 31, 2016 | $ | 9.3 | $ | (0.9 | ) | $ | (43.7 | ) | $ | (35.3 | ) | |||||
OCI before reclassifications | $ | (6.1 | ) | $ | 1.1 | $ | 0.1 | $ | (4.9 | ) | ||||||
Amounts reclassified from AOCI | — | 0.4 | 0.2 | 0.6 | ||||||||||||
Net current period OCI | (6.1 | ) | 1.5 | 0.3 | (4.3 | ) | ||||||||||
Balance at June 30, 2016 | $ | 3.2 | $ | 0.6 | $ | (43.4 | ) | $ | (39.6 | ) | ||||||
OCI before reclassifications | $ | (0.5 | ) | $ | (0.2 | ) | $ | (1.1 | ) | $ | (1.8 | ) | ||||
Amounts reclassified from AOCI | — | (0.1 | ) | 0.4 | 0.3 | |||||||||||
Net current period OCI | (0.5 | ) | (0.3 | ) | (0.7 | ) | (1.5 | ) | ||||||||
Balance at September 30, 2016 | $ | 2.7 | $ | 0.3 | $ | (44.1 | ) | $ | (41.1 | ) |
Three months ended September 30, | ||||||||||
(in millions) | 2017 | 2016 | Recognized Location | |||||||
Gains and losses on cash flow hedges | ||||||||||
Foreign currency exchange contracts | $ | 1.6 | $ | 0.4 | Cost of sales | |||||
Commodity contracts | 0.4 | (0.2 | ) | Cost of sales | ||||||
2.0 | 0.2 | Total before tax | ||||||||
(0.8 | ) | (0.1 | ) | Tax benefit | ||||||
$ | 1.2 | $ | 0.1 | Net of tax | ||||||
Amortization of pension and postretirement items | ||||||||||
Actuarial losses | (0.5 | ) | (0.6 | ) | (a) | |||||
(0.5 | ) | (0.6 | ) | Total before tax | ||||||
0.2 | 0.2 | Tax expense | ||||||||
$ | (0.3 | ) | $ | (0.4 | ) | Net of tax | ||||
Total reclassifications for the period, net of tax | $ | 0.9 | $ | (0.3 | ) | Net of tax |
Nine months ended September 30, | ||||||||||
(in millions) | 2017 | 2016 | Recognized Location | |||||||
Gains and losses on cash flow hedges | ||||||||||
Foreign currency exchange contracts | $ | 2.3 | $ | 0.3 | Cost of sales | |||||
Commodity contracts | 0.8 | (1.4 | ) | Cost of sales | ||||||
3.1 | (1.1 | ) | Total before tax | |||||||
(1.2 | ) | 0.4 | Tax (benefit) expense | |||||||
$ | 1.9 | $ | (0.7 | ) | Net of tax | |||||
Amortization of pension and postretirement items | ||||||||||
Actuarial losses | (1.5 | ) | $ | (1.9 | ) | (a) | ||||
(1.5 | ) | (1.9 | ) | Total before tax | ||||||
0.4 | 0.7 | Tax expense | ||||||||
$ | (1.1 | ) | $ | (1.2 | ) | Net of tax | ||||
Total reclassifications for the period, net of tax | $ | 0.8 | $ | (1.9 | ) | Net of tax | ||||
(a) These other comprehensive income (loss) components are included in the net periodic pension cost (see Note 17, "Employee Benefit Plans," for further details). |
|
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Stock-based compensation expense: | ||||||||||||||||
Selling, general and administrative expenses | $ | 2.1 | $ | 1.2 | $ | 6.3 | $ | 3.8 | ||||||||
Separation expense | — | 0.3 | — | 1.1 | ||||||||||||
Restructuring expense | 0.3 | — | 2.9 | — | ||||||||||||
Total stock-based compensation expense | $ | 2.4 | $ | 1.5 | $ | 9.2 | $ | 4.9 |
|
|
(in millions) | ||||
Balance at December 31, 2016 | $ | 36.3 | ||
Accruals for warranties issued | 24.8 | |||
Settlements made (in cash or in kind) | (25.9 | ) | ||
Foreign currency translation impact | 0.7 | |||
Balance at September 30, 2017 | $ | 35.9 |
|
(in millions) | ||||
Balance at December 31, 2016 | $ | 14.4 | ||
Restructuring charges | 8.5 | |||
Use of reserve | (3.8 | ) | ||
Non-cash adjustment (1) | (2.9 | ) | ||
Balance at September 30, 2017 | $ | 16.2 |
|
Three Months Ended September 30, | ||||||||||||||||
2017 | 2016 | |||||||||||||||
(in millions) | Pension Plans | Postretirement Health and Other Plans | Pension Plans | Postretirement Health and Other Plans | ||||||||||||
Service cost - benefits earned during the period | $ | — | $ | — | $ | 0.1 | $ | — | ||||||||
Interest cost of projected benefit obligations | 1.3 | 0.1 | 2.0 | 0.1 | ||||||||||||
Expected return on plan assets | (1.5 | ) | — | (1.5 | ) | — | ||||||||||
Amortization of actuarial net loss | 0.5 | — | 0.6 | — | ||||||||||||
Net periodic benefit costs | $ | 0.3 | $ | 0.1 | $ | 1.2 | $ | 0.1 |
Nine Months Ended September 30, | ||||||||||||||||
2017 | 2016 | |||||||||||||||
(in millions) | Pension Plans | Postretirement Health and Other Plans | Pension Plans | Postretirement Health and Other Plans | ||||||||||||
Service cost - benefits earned during the period | $ | — | $ | — | $ | 0.2 | $ | — | ||||||||
Interest cost of projected benefit obligations | 3.9 | 0.2 | 6.3 | 0.3 | ||||||||||||
Expected return on plan assets | (4.5 | ) | — | (4.7 | ) | — | ||||||||||
Amortization of actuarial net loss | 1.5 | — | 1.9 | — | ||||||||||||
Net periodic benefit costs | $ | 0.9 | $ | 0.2 | $ | 3.7 | $ | 0.3 |
|
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
Millions of dollars, except percentage data | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Net sales: | ||||||||||||||||
Americas | $ | 302.2 | $ | 316.9 | $ | 875.8 | $ | 881.7 | ||||||||
EMEA | 80.3 | 67.9 | 224.2 | 212.8 | ||||||||||||
APAC | 51.8 | 52.5 | 138.4 | 134.5 | ||||||||||||
Elimination of intersegment sales | (53.9 | ) | (53.3 | ) | (158.9 | ) | (151.1 | ) | ||||||||
Total net sales | $ | 380.4 | $ | 384.0 | $ | 1,079.5 | $ | 1,077.9 | ||||||||
Segment Adjusted Operating EBITDA: | ||||||||||||||||
Americas | $ | 66.3 | $ | 67.9 | $ | 172.2 | $ | 176.0 | ||||||||
EMEA | 17.4 | 10.4 | 45.0 | 28.8 | ||||||||||||
APAC | 7.6 | 8.9 | 19.3 | 17.9 | ||||||||||||
Total Segment Adjusted Operating EBITDA | 91.3 | 87.2 | 236.5 | 222.7 | ||||||||||||
Corporate and unallocated | (9.8 | ) | (10.9 | ) | (35.8 | ) | (32.5 | ) | ||||||||
Amortization expense | (7.9 | ) | (7.8 | ) | (23.4 | ) | (23.5 | ) | ||||||||
Depreciation expense | (4.1 | ) | (4.2 | ) | (12.1 | ) | (13.0 | ) | ||||||||
Separation expense | (0.3 | ) | (1.4 | ) | (1.5 | ) | (5.7 | ) | ||||||||
Restructuring expense | (2.8 | ) | (0.6 | ) | (8.5 | ) | (2.2 | ) | ||||||||
Gain (loss) from impairment or disposal of assets — net | 3.9 | (1.7 | ) | 4.1 | (1.7 | ) | ||||||||||
Earnings from operations | 70.3 | 60.6 | 159.3 | 144.1 | ||||||||||||
Interest expense | (21.7 | ) | (25.0 | ) | (65.9 | ) | (60.5 | ) | ||||||||
Interest expense on notes with MTW — net | — | — | — | (0.1 | ) | |||||||||||
Loss on early extinguishment of debt | (1.0 | ) | — | (4.4 | ) | — | ||||||||||
Other expense — net | (2.6 | ) | (3.6 | ) | (7.0 | ) | (9.6 | ) | ||||||||
Earnings before income taxes | $ | 45.0 | $ | 32.0 | $ | 82.0 | $ | 73.9 | ||||||||
Adjusted Operating EBITDA % by segment (1) : | ||||||||||||||||
Americas | 21.9 | % | 21.4 | % | 19.7 | % | 20.0 | % | ||||||||
EMEA | 21.7 | % | 15.3 | % | 20.1 | % | 13.5 | % | ||||||||
APAC | 14.7 | % | 17.0 | % | 13.9 | % | 13.3 | % | ||||||||
(1) Adjusted Operating EBITDA % in the section above is calculated by dividing the dollar amount of Adjusted Operating EBITDA by net sales for each respective segment. | ||||||||||||||||
Net sales by geographic area (2): | ||||||||||||||||
United States | $ | 248.9 | $ | 257.5 | $ | 710.3 | $ | 713.7 | ||||||||
Other Americas | 23.1 | 26.2 | 70.9 | 73.2 | ||||||||||||
EMEA | 62.6 | 56.7 | 179.2 | 177.5 | ||||||||||||
APAC | 45.8 | 43.6 | 119.1 | 113.5 | ||||||||||||
Total net sales by geographic area | $ | 380.4 | $ | 384.0 | $ | 1,079.5 | $ | 1,077.9 | ||||||||
(2) Net sales in the section above are attributed to geographic regions based on location of customer. |
(in millions) | September 30, 2017 | December 31, 2016 | ||||||
Total assets by segment: | ||||||||
Americas | $ | 1,472.6 | $ | 1,463.7 | ||||
EMEA | 124.6 | 102.6 | ||||||
APAC | 127.4 | 110.8 | ||||||
Corporate | 137.5 | 92.0 | ||||||
Total assets | $ | 1,862.1 | $ | 1,769.1 |
|
|
Three months ended September 30, 2017 | ||||||||||||||||||||
(in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Net sales | $ | — | $ | 273.8 | $ | 198.8 | $ | (92.2 | ) | $ | 380.4 | |||||||||
Cost of sales | 1.2 | 187.0 | 140.5 | (92.2 | ) | 236.5 | ||||||||||||||
Gross profit | (1.2 | ) | 86.8 | 58.3 | — | 143.9 | ||||||||||||||
Selling, general and administrative expenses | 9.6 | 34.4 | 22.5 | — | 66.5 | |||||||||||||||
Amortization expense | — | 7.1 | 0.8 | — | 7.9 | |||||||||||||||
Separation expense | 0.3 | — | — | — | 0.3 | |||||||||||||||
Restructuring expense | 0.1 | 2.4 | 0.3 | — | 2.8 | |||||||||||||||
Gain from impairment or disposal of assets — net | — | (0.1 | ) | (3.8 | ) | — | (3.9 | ) | ||||||||||||
(Loss) earnings from operations | (11.2 | ) | 43.0 | 38.5 | — | 70.3 | ||||||||||||||
Interest expense | 20.7 | 0.3 | 0.7 | — | 21.7 | |||||||||||||||
Loss on early extinguishment of debt | 1.0 | — | — | — | 1.0 | |||||||||||||||
Other (income) expense — net | (3.0 | ) | (5.2 | ) | 10.8 | — | 2.6 | |||||||||||||
Equity in earnings (loss) of subsidiaries | 52.1 | 22.1 | — | (74.2 | ) | — | ||||||||||||||
Earnings (loss) before income taxes | 22.2 | 70.0 | 27.0 | (74.2 | ) | 45.0 | ||||||||||||||
Income tax (benefit) expense | (10.9 | ) | 17.9 | 4.9 | — | 11.9 | ||||||||||||||
Net earnings (loss) | $ | 33.1 | $ | 52.1 | $ | 22.1 | $ | (74.2 | ) | $ | 33.1 | |||||||||
Total other comprehensive income (loss), net of tax | 2.5 | 7.4 | 6.6 | (14.0 | ) | 2.5 | ||||||||||||||
Comprehensive income (loss) | $ | 35.6 | $ | 59.5 | $ | 28.7 | $ | (88.2 | ) | $ | 35.6 |
Three months ended September 30, 2016 | ||||||||||||||||||||
(in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Net sales | $ | — | $ | 285.4 | $ | 192.2 | $ | (93.6 | ) | 384.0 | ||||||||||
Cost of sales | 1.2 | 197.2 | 137.2 | (93.6 | ) | 242.0 | ||||||||||||||
Gross profit | (1.2 | ) | 88.2 | 55.0 | — | 142.0 | ||||||||||||||
Selling, general and administrative expenses | 8.3 | 37.9 | 23.7 | — | 69.9 | |||||||||||||||
Amortization expense | — | 7.1 | 0.7 | — | 7.8 | |||||||||||||||
Separation expense | 1.3 | 0.1 | — | — | 1.4 | |||||||||||||||
Restructuring expense | — | 0.6 | — | — | 0.6 | |||||||||||||||
Asset impairment expense | — | 1.7 | — | — | 1.7 | |||||||||||||||
(Loss) earnings from operations | (10.8 | ) | 40.8 | 30.6 | — | 60.6 | ||||||||||||||
Interest expense | 24.2 | 0.2 | 0.6 | — | 25.0 | |||||||||||||||
Other expense — net | 1.4 | 1.4 | 0.8 | — | 3.6 | |||||||||||||||
Equity in earnings (loss) of subsidiaries | 41.0 | 22.6 | — | (63.6 | ) | — | ||||||||||||||
Earnings (loss) before income taxes | 4.6 | 61.8 | 29.2 | (63.6 | ) | 32.0 | ||||||||||||||
Income tax (benefit) expense | (20.3 | ) | 20.8 | 6.6 | — | 7.1 | ||||||||||||||
Net earnings (loss) | $ | 24.9 | $ | 41.0 | $ | 22.6 | $ | (63.6 | ) | $ | 24.9 | |||||||||
Total other comprehensive (loss) income, net of tax | (1.5 | ) | (0.8 | ) | (0.7 | ) | 1.5 | (1.5 | ) | |||||||||||
Comprehensive income (loss) | $ | 23.4 | $ | 40.2 | $ | 21.9 | $ | (62.1 | ) | $ | 23.4 |
Nine months ended September 30, 2017 | ||||||||||||||||||||
(in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Net sales | $ | — | $ | 792.4 | $ | 567.2 | $ | (280.1 | ) | $ | 1,079.5 | |||||||||
Cost of sales | 2.9 | 555.7 | 396.9 | (280.1 | ) | 675.4 | ||||||||||||||
Gross profit | (2.9 | ) | 236.7 | 170.3 | — | 404.1 | ||||||||||||||
Selling, general and administrative expenses | 29.4 | 116.1 | 70.0 | — | 215.5 | |||||||||||||||
Amortization expense | — | 21.3 | 2.1 | — | 23.4 | |||||||||||||||
Separation expense | 1.5 | — | — | — | 1.5 | |||||||||||||||
Restructuring expense | 4.9 | 3.2 | 0.4 | — | 8.5 | |||||||||||||||
(Gain) loss from impairment or disposal of assets — net | — | (0.5 | ) | (3.6 | ) | — | (4.1 | ) | ||||||||||||
(Loss) earnings from operations | (38.7 | ) | 96.6 | 101.4 | — | 159.3 | ||||||||||||||
Interest expense | 63.1 | 0.8 | 2.0 | — | 65.9 | |||||||||||||||
Loss on early extinguishment of debt | 4.4 | — | — | — | 4.4 | |||||||||||||||
Other (income) expense — net | (8.5 | ) | (14.9 | ) | 30.4 | — | 7.0 | |||||||||||||
Equity in earnings (loss) of subsidiaries | 131.7 | 62.0 | — | (193.7 | ) | — | ||||||||||||||
Earnings (loss) before income taxes | 34.0 | 172.7 | 69.0 | (193.7 | ) | 82.0 | ||||||||||||||
Income tax (benefit) expense | (34.2 | ) | 41.0 | 7.0 | — | 13.8 | ||||||||||||||
Net earnings (loss) | $ | 68.2 | $ | 131.7 | $ | 62.0 | $ | (193.7 | ) | $ | 68.2 | |||||||||
Total other comprehensive income (loss), net of tax | 14.1 | 18.2 | 15.4 | (33.6 | ) | 14.1 | ||||||||||||||
Comprehensive income (loss) | $ | 82.3 | $ | 149.9 | $ | 77.4 | $ | (227.3 | ) | $ | 82.3 |
Nine months ended September 30, 2016 | ||||||||||||||||||||
(in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Net sales | $ | — | $ | 804.4 | $ | 546.6 | $ | (273.1 | ) | $ | 1,077.9 | |||||||||
Cost of sales | 2.4 | 559.5 | 394.8 | (273.1 | ) | 683.6 | ||||||||||||||
Gross profit | (2.4 | ) | 244.9 | 151.8 | — | 394.3 | ||||||||||||||
Selling, general and administrative expenses | 26.6 | 112.7 | 77.8 | — | 217.1 | |||||||||||||||
Amortization expense | — | 21.4 | 2.1 | — | 23.5 | |||||||||||||||
Separation expense | 5.6 | — | 0.1 | — | 5.7 | |||||||||||||||
Restructuring expense | — | 1.4 | 0.8 | — | 2.2 | |||||||||||||||
Asset impairment expense | — | 1.7 | — | — | 1.7 | |||||||||||||||
(Loss) earnings from operations | (34.6 | ) | 107.7 | 71.0 | — | 144.1 | ||||||||||||||
Interest expense | 58.2 | 1.0 | 1.3 | — | 60.5 | |||||||||||||||
Interest expense on notes with MTW — net | — | — | 0.1 | — | 0.1 | |||||||||||||||
Other expense (income) — net | 12.4 | 46.9 | (49.7 | ) | — | 9.6 | ||||||||||||||
Equity in earnings (loss) of subsidiaries | 114.9 | 86.8 | — | (201.7 | ) | — | ||||||||||||||
Earnings (loss) before income taxes | 9.7 | 146.6 | 119.3 | (201.7 | ) | 73.9 | ||||||||||||||
Income tax (benefit) expense | (48.4 | ) | 31.7 | 32.5 | — | 15.8 | ||||||||||||||
Net earnings (loss) | $ | 58.1 | $ | 114.9 | $ | 86.8 | $ | (201.7 | ) | $ | 58.1 | |||||||||
Total other comprehensive income (loss), net of tax | 3.4 | 14.8 | 20.2 | (35.0 | ) | 3.4 | ||||||||||||||
Comprehensive income (loss) | $ | 61.5 | $ | 129.7 | $ | 107.0 | $ | (236.7 | ) | $ | 61.5 |
September 30, 2017 | ||||||||||||||||||||
(in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Assets | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 7.6 | $ | 2.9 | $ | 117.9 | $ | — | $ | 128.4 | ||||||||||
Restricted cash | — | — | 0.2 | — | 0.2 | |||||||||||||||
Accounts receivable — net | — | 0.1 | 88.3 | (2.0 | ) | 86.4 | ||||||||||||||
Inventories — net | — | 84.2 | 84.9 | — | 169.1 | |||||||||||||||
Prepaids and other current assets | 5.7 | 6.6 | 9.2 | — | 21.5 | |||||||||||||||
Total current assets | 13.3 | 93.8 | 300.5 | (2.0 | ) | 405.6 | ||||||||||||||
Property, plant and equipment — net | 1.0 | 67.6 | 41.9 | — | 110.5 | |||||||||||||||
Goodwill | — | 832.4 | 13.6 | — | 846.0 | |||||||||||||||
Other intangible assets — net | — | 402.2 | 65.2 | — | 467.4 | |||||||||||||||
Intercompany long-term note receivable | — | 20.0 | — | (20.0 | ) | — | ||||||||||||||
Due from affiliates | — | 3,144.6 | — | (3,144.6 | ) | — | ||||||||||||||
Investment in subsidiaries | 3,912.0 | — | — | (3,912.0 | ) | — | ||||||||||||||
Other non-current assets | 4.2 | 5.2 | 30.3 | (7.1 | ) | 32.6 | ||||||||||||||
Total assets | $ | 3,930.5 | $ | 4,565.8 | $ | 451.5 | $ | (7,085.7 | ) | $ | 1,862.1 | |||||||||
Liabilities and equity | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Accounts payable | $ | 0.2 | $ | 58.1 | $ | 51.8 | $ | (2.0 | ) | $ | 108.1 | |||||||||
Accrued expenses and other liabilities | 26.0 | 84.5 | 52.4 | — | 162.9 | |||||||||||||||
Short-term borrowings | — | — | 4.0 | — | 4.0 | |||||||||||||||
Current portion of long-term debt and capital leases | — | 0.5 | — | — | 0.5 | |||||||||||||||
Product warranties | — | 16.6 | 7.4 | — | 24.0 | |||||||||||||||
Total current liabilities | 26.2 | 159.7 | 115.6 | (2.0 | ) | 299.5 | ||||||||||||||
Long-term debt and capital leases | 1,290.3 | 1.3 | 1.0 | — | 1,292.6 | |||||||||||||||
Deferred income taxes | 120.0 | — | 19.2 | — | 139.2 | |||||||||||||||
Pension and post-retirement health obligations | 44.5 | 4.8 | — | (7.1 | ) | 42.2 | ||||||||||||||
Intercompany long-term note payable | 15.7 | — | 4.3 | (20.0 | ) | — | ||||||||||||||
Due to affiliates | 2,374.6 | — | 770.0 | (3,144.6 | ) | — | ||||||||||||||
Investment in subsidiaries | — | 462.6 | — | (462.6 | ) | — | ||||||||||||||
Other long-term liabilities | 15.2 | 25.4 | 4.0 | — | 44.6 | |||||||||||||||
Total non-current liabilities | 3,860.3 | 494.1 | 798.5 | (3,634.3 | ) | 1,518.6 | ||||||||||||||
Total equity (deficit): | ||||||||||||||||||||
Total equity (deficit) | 44.0 | 3,912.0 | (462.6 | ) | (3,449.4 | ) | 44.0 | |||||||||||||
Total liabilities and equity (deficit) | $ | 3,930.5 | $ | 4,565.8 | $ | 451.5 | $ | (7,085.7 | ) | $ | 1,862.1 |
December 31, 2016 | ||||||||||||||||||||
(in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Assets | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 0.4 | $ | 2.3 | $ | 51.1 | $ | — | $ | 53.8 | ||||||||||
Restricted cash | — | — | 6.4 | — | 6.4 | |||||||||||||||
Accounts receivable — net | 0.5 | — | 86.1 | (4.9 | ) | 81.7 | ||||||||||||||
Inventories — net | — | 74.3 | 71.3 | — | 145.6 | |||||||||||||||
Prepaids and other current assets | 0.9 | 4.5 | 8.5 | — | 13.9 | |||||||||||||||
Current assets held for sale | — | 2.3 | 4.5 | — | 6.8 | |||||||||||||||
Total current assets | 1.8 | 83.4 | 227.9 | (4.9 | ) | 308.2 | ||||||||||||||
Property, plant and equipment — net | 1.2 | 67.9 | 40.0 | — | 109.1 | |||||||||||||||
Goodwill | — | 832.4 | 12.9 | — | 845.3 | |||||||||||||||
Other intangible assets — net | — | 423.5 | 60.9 | — | 484.4 | |||||||||||||||
Intercompany long-term note receivable | — | 20.0 | — | (20.0 | ) | — | ||||||||||||||
Due from affiliates | — | 3,085.8 | — | (3,085.8 | ) | — | ||||||||||||||
Investment in subsidiaries | 3,780.3 | — | — | (3,780.3 | ) | — | ||||||||||||||
Other non-current assets | 2.7 | 5.1 | 19.7 | (5.4 | ) | 22.1 | ||||||||||||||
Total assets | $ | 3,786.0 | $ | 4,518.1 | $ | 361.4 | $ | (6,896.4 | ) | $ | 1,769.1 | |||||||||
Liabilities and equity | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Accounts payable | $ | 0.1 | $ | 64.6 | $ | 48.6 | $ | (4.9 | ) | $ | 108.4 | |||||||||
Accrued expenses and other liabilities | 14.1 | 97.5 | 62.9 | — | 174.5 | |||||||||||||||
Current portion of capital leases | — | 0.5 | 1.1 | — | 1.6 | |||||||||||||||
Product warranties | — | 18.4 | 9.5 | — | 27.9 | |||||||||||||||
Current liabilities held for sale | — | — | 0.7 | — | 0.7 | |||||||||||||||
Total current liabilities | 14.2 | 181.0 | 122.8 | (4.9 | ) | 313.1 | ||||||||||||||
Long-term debt and capital leases | 1,277.0 | 1.7 | — | — | 1,278.7 | |||||||||||||||
Deferred income taxes | 120.5 | — | 17.3 | — | 137.8 | |||||||||||||||
Pension and post-retirement health obligations | 47.9 | 4.9 | — | (5.4 | ) | 47.4 | ||||||||||||||
Intercompany long-term note payable | 15.7 | — | 4.3 | (20.0 | ) | — | ||||||||||||||
Due to affiliates | 2,344.8 | — | 741.0 | (3,085.8 | ) | — | ||||||||||||||
Investment in subsidiaries | — | 524.6 | — | (524.6 | ) | — | ||||||||||||||
Other long-term liabilities | 9.4 | 25.6 | 0.6 | — | 35.6 | |||||||||||||||
Total non-current liabilities | 3,815.3 | 556.8 | 763.2 | (3,635.8 | ) | 1,499.5 | ||||||||||||||
Total (deficit) equity: | ||||||||||||||||||||
Total (deficit) equity | (43.5 | ) | 3,780.3 | (524.6 | ) | (3,255.7 | ) | (43.5 | ) | |||||||||||
Total liabilities and equity (deficit) | $ | 3,786.0 | $ | 4,518.1 | $ | 361.4 | $ | (6,896.4 | ) | $ | 1,769.1 |
Nine Months Ended September 30, 2017 | ||||||||||||||||||||
(in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (30.0 | ) | $ | 62.8 | $ | 33.0 | $ | — | $ | 65.8 | |||||||||
Cash flows from investing activities | ||||||||||||||||||||
Capital expenditures | (0.4 | ) | (8.9 | ) | (4.8 | ) | — | (14.1 | ) | |||||||||||
Proceeds from sale of property, plant and equipment | — | 6.0 | 6.3 | 12.3 | ||||||||||||||||
Changes in restricted cash | — | — | 6.3 | — | 6.3 | |||||||||||||||
Intercompany investment | — | (59.0 | ) | — | 59.0 | — | ||||||||||||||
Net cash (used in) provided by investing activities | (0.4 | ) | (61.9 | ) | 7.8 | 59.0 | 4.5 | |||||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Proceeds from long-term debt and capital leases | 140.3 | — | 0.6 | — | 140.9 | |||||||||||||||
Repayments on long-term debt and capital leases | (133.8 | ) | (0.3 | ) | (0.7 | ) | — | (134.8 | ) | |||||||||||
Debt issuance costs | (2.0 | ) | — | — | — | (2.0 | ) | |||||||||||||
Changes in short-term borrowings | — | — | 4.0 | — | 4.0 | |||||||||||||||
Exercises of stock options | 3.2 | — | — | — | 3.2 | |||||||||||||||
Intercompany financing | 29.9 | — | 29.1 | (59.0 | ) | — | ||||||||||||||
Net cash provided by (used in) financing activities | 37.6 | (0.3 | ) | 33.0 | (59.0 | ) | 11.3 | |||||||||||||
Effect of exchange rate changes on cash | — | — | (7.0 | ) | — | (7.0 | ) | |||||||||||||
Net increase in cash and cash equivalents | 7.2 | 0.6 | 66.8 | — | 74.6 | |||||||||||||||
Balance at beginning of period | 0.4 | 2.3 | 51.1 | — | 53.8 | |||||||||||||||
Balance at end of period | $ | 7.6 | $ | 2.9 | $ | 117.9 | $ | — | $ | 128.4 |
Nine Months Ended September 30, 2016 | ||||||||||||||||||||
(in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (4.0 | ) | $ | 98.5 | $ | (42.7 | ) | $ | — | $ | 51.8 | ||||||||
Cash flows from investing activities | ||||||||||||||||||||
Capital expenditures | (0.6 | ) | (5.4 | ) | (4.8 | ) | — | (10.8 | ) | |||||||||||
Changes in restricted cash | — | — | (2.9 | ) | — | (2.9 | ) | |||||||||||||
Intercompany investment | — | (51.0 | ) | — | 51.0 | — | ||||||||||||||
Proceeds from intercompany note | — | — | 42.4 | (42.4 | ) | — | ||||||||||||||
Net cash (used in) provided by investing activities | (0.6 | ) | (56.4 | ) | 34.7 | 8.6 | (13.7 | ) | ||||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Proceeds from long-term debt and capital leases | 1,466.9 | — | 8.7 | — | 1,475.6 | |||||||||||||||
Repayments on long-term debt and capital leases | (86.8 | ) | (0.5 | ) | (7.3 | ) | — | (94.6 | ) | |||||||||||
Debt issuance costs | (41.2 | ) | — | — | — | (41.2 | ) | |||||||||||||
Dividend paid to MTW | (1,362.0 | ) | — | — | — | (1,362.0 | ) | |||||||||||||
Net transactions with MTW | 7.0 | — | — | — | 7.0 | |||||||||||||||
Exercises of stock options | 15.1 | — | — | — | 15.1 | |||||||||||||||
Intercompany financing | 15.7 | — | 35.3 | (51.0 | ) | — | ||||||||||||||
Repayments on intercompany note | — | (42.4 | ) | — | 42.4 | — | ||||||||||||||
Net cash provided by (used in) financing activities | 14.7 | (42.9 | ) | 36.7 | (8.6 | ) | (0.1 | ) | ||||||||||||
Effect of exchange rate changes on cash | — | — | (0.4 | ) | — | (0.4 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | 10.1 | (0.8 | ) | 28.3 | — | 37.6 | ||||||||||||||
Balance at beginning of period | — | 3.5 | 28.5 | — | 32.0 | |||||||||||||||
Balance at end of period | $ | 10.1 | $ | 2.7 | $ | 56.8 | $ | — | $ | 69.6 |
|
|
Fair Value as of | ||||||||||||||||
September 30, 2017 | ||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Current assets: | ||||||||||||||||
Foreign currency exchange contracts | $ | — | $ | 2.7 | $ | — | $ | 2.7 | ||||||||
Commodity contracts | — | 1.2 | — | 1.2 | ||||||||||||
Cross-currency swap contract | — | 1.1 | — | 1.1 | ||||||||||||
Total current assets at fair value | — | 5.0 | — | 5.0 | ||||||||||||
Non-current assets: | ||||||||||||||||
Commodity contracts | — | 0.5 | — | 0.5 | ||||||||||||
Interest rate swap contracts | — | 0.4 | — | 0.4 | ||||||||||||
Total non-current assets at fair value | — | 0.9 | — | 0.9 | ||||||||||||
Total assets at fair value | $ | — | $ | 5.9 | $ | — | $ | 5.9 | ||||||||
Current liabilities: | ||||||||||||||||
Foreign currency exchange contracts | $ | — | $ | 1.5 | $ | — | $ | 1.5 | ||||||||
Commodity contracts | — | 0.1 | — | 0.1 | ||||||||||||
Interest rate swap contracts | — | 1.3 | — | 1.3 | ||||||||||||
Total current liabilities at fair value | — | 2.9 | — | 2.9 | ||||||||||||
Non-current liabilities: | ||||||||||||||||
Cross-currency swap contract | — | 7.5 | — | 7.5 | ||||||||||||
Total non-current liabilities at fair value | — | 7.5 | — | 7.5 | ||||||||||||
Total liabilities at fair value | $ | — | $ | 10.4 | $ | — | $ | 10.4 |
Fair Value as of | ||||||||||||||||
December 31, 2016 | ||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Current assets: | ||||||||||||||||
Foreign currency exchange contracts | $ | — | $ | 0.6 | $ | — | $ | 0.6 | ||||||||
Commodity contracts | — | 0.9 | — | 0.9 | ||||||||||||
Total current assets at fair value | — | 1.5 | — | 1.5 | ||||||||||||
Non-current assets: | ||||||||||||||||
Commodity contracts | — | 0.2 | — | 0.2 | ||||||||||||
Total non-current assets at fair value | — | 0.2 | — | 0.2 | ||||||||||||
Total assets at fair value | $ | — | $ | 1.7 | $ | — | $ | 1.7 | ||||||||
Current liabilities: | ||||||||||||||||
Foreign currency exchange contracts | $ | — | $ | 1.0 | $ | — | $ | 1.0 | ||||||||
Commodity contracts | — | 0.1 | — | 0.1 | ||||||||||||
Total current liabilities at fair value | — | 1.1 | — | 1.1 | ||||||||||||
Total liabilities at fair value | $ | — | $ | 1.1 | $ | — | $ | 1.1 |
|
Units Hedged | ||||||||||
Commodity | September 30, 2017 | December 31, 2016 | Unit | Type | ||||||
Aluminum | 1,855 | 1,663 | MT | Cash flow | ||||||
Copper | 759 | 746 | MT | Cash flow | ||||||
Natural gas | 12,400 | 56,416 | MMBtu | Cash flow | ||||||
Steel | 10,453 | 8,663 | Short tons | Cash flow |
Units Hedged | ||||||||
Currency | September 30, 2017 | December 31, 2016 | Type | |||||
Canadian Dollar | 34,180,000 | 26,130,000 | Cash flow | |||||
European Euro | 14,580,560 | 11,261,848 | Cash flow | |||||
British Pound | 13,586,529 | 4,191,763 | Cash flow | |||||
Mexican Peso | 181,600,000 | 148,200,000 | Cash flow | |||||
Thailand Baht | 2,322,970 | 23,231,639 | Cash flow | |||||
Singapore Dollar | 3,280,000 | 4,375,000 | Cash flow |
Units Hedged | ||||||||||
Commodity | September 30, 2017 | December 31, 2016 | Unit | Type | ||||||
Aluminum | — | 28 | MT | Cash flow | ||||||
Steel | — | 340 | Short tons | Cash flow |
Units Hedged | ||||||||
Currency | September 30, 2017 | December 31, 2016 | Purpose | |||||
Singapore Dollar | 28,127,000 | — | Notes payable and receivable settlement | |||||
European Euro | 71,300,000 | 16,000,000 | Notes and accounts payable and receivable settlement | |||||
British Pound | 13,414,816 | 8,192,692 | Accounts payable and receivable settlement | |||||
Chinese Yuan | 65,767,259 | — | Notes payable and receivable settlement | |||||
Swiss Franc | 4,800,000 | 3,150,000 | Accounts payable and receivable settlement |
Asset Derivatives | ||||||||||
(in millions) | Balance Sheet Location | Fair Value | ||||||||
September 30, 2017 | December 31, 2016 | |||||||||
Derivatives designated as hedging instruments: | ||||||||||
Foreign currency exchange contracts | Prepaids and other current assets | $ | 2.7 | $ | 0.6 | |||||
Commodity contracts | Prepaids and other current assets | 1.2 | 0.9 | |||||||
Cross-currency swap contract | Prepaids and other current assets | 1.1 | — | |||||||
Commodity contracts | Other non-current assets | 0.5 | 0.2 | |||||||
Interest rate swap contracts | Other non-current assets | 0.4 | — | |||||||
Total derivatives designated as hedging instruments | 5.9 | 1.7 | ||||||||
Total asset derivatives | $ | 5.9 | $ | 1.7 |
Liability Derivatives | ||||||||||
(in millions) | Balance Sheet Location | Fair Value | ||||||||
September 30, 2017 | December 31, 2016 | |||||||||
Derivatives designated as hedging instruments: | ||||||||||
Foreign currency exchange contracts | Accrued expenses and other liabilities | $ | 0.5 | $ | 0.8 | |||||
Commodity contracts | Accrued expenses and other liabilities | 0.1 | 0.1 | |||||||
Interest rate swap contracts | Accrued expenses and other liabilities | 1.3 | — | |||||||
Cross-currency swap contract | Other long-term liabilities | 7.5 | — | |||||||
Total derivatives designated as hedging instruments | 9.4 | 0.9 | ||||||||
Derivatives NOT designated as hedging instruments: | ||||||||||
Foreign currency exchange contracts | Accrued expenses and other liabilities | 1.0 | 0.2 | |||||||
Total derivatives NOT designated as hedging instruments | 1.0 | 0.2 | ||||||||
Total liability derivatives | $ | 10.4 | $ | 1.1 |
Derivatives in cash flow hedging relationships (in millions) | Amount of gain (loss) recognized in AOCI on derivative (effective portion, net of tax) | 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 September 30, | Three Months Ended September 30, | |||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||
Foreign currency exchange contracts | $ | 1.0 | $ | (0.3 | ) | Cost of sales | $ | 1.6 | $ | 0.4 | ||||||||
Commodity contracts | 0.5 | — | Cost of sales | 0.4 | (0.2 | ) | ||||||||||||
Interest rate swap contracts | 0.5 | — | Interest expense | — | — | |||||||||||||
Cross-currency swap contract (1) | (5.8 | ) | — | Selling, general and administrative expense | — | — | ||||||||||||
Total | $ | (3.8 | ) | $ | (0.3 | ) | $ | 2.0 | $ | 0.2 |
Derivatives in cash flow hedging relationships (in millions) | Amount of gain (loss) recognized in AOCI on derivative (effective portion, net of tax) | Location of gain (loss) reclassified from AOCI into income (effective portion) | Amount of gain (loss) reclassified from AOCI into income (effective portion) | |||||||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||
Foreign currency exchange contracts | $ | 2.5 | $ | 0.4 | Cost of sales | $ | 2.3 | $ | 0.3 | |||||||||
Commodity contracts | 0.5 | 1.7 | Cost of sales | 0.8 | (1.4 | ) | ||||||||||||
Interest rate swap contracts | (0.6 | ) | — | Interest expense | — | — | ||||||||||||
Cross-currency swap contract (1) | (3.9 | ) | — | Selling, general and administrative expense | — | — | ||||||||||||
Total | $ | (1.5 | ) | $ | 2.1 | $ | 3.1 | $ | (1.1 | ) |
Derivatives 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 September 30, | ||||||||||
2017 | 2016 | |||||||||
Commodity contracts | $ | (0.1 | ) | $ | — | Cost of sales | ||||
Total | $ | (0.1 | ) | $ | — |
Derivatives 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) | ||||||||
Nine Months Ended September 30, | ||||||||||
2017 | 2016 | |||||||||
Commodity contracts | $ | 0.1 | $ | — | Cost of sales | |||||
Total | $ | 0.1 | $ | — |
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 September 30, | ||||||||||
2017 | 2016 | |||||||||
Foreign currency exchange contracts | $ | (0.5 | ) | $ | 0.6 | Other expense (income) — net | ||||
Total | $ | (0.5 | ) | $ | 0.6 |
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 | ||||||||
Nine Months Ended September 30, | ||||||||||
2017 | 2016 | |||||||||
Foreign currency exchange contracts | $ | (4.9 | ) | $ | — | Other expense (income) — net | ||||
Commodity contracts | — | 0.7 | Other expense (income) — net | |||||||
Total | $ | (4.9 | ) | $ | 0.7 |
Three months ended September 30, | ||||||||||
(in millions) | 2017 | 2016 | Recognized Location | |||||||
Gains and losses on cash flow hedges | ||||||||||
Foreign currency exchange contracts | $ | 1.6 | $ | 0.4 | Cost of sales | |||||
Commodity contracts | 0.4 | (0.2 | ) | Cost of sales | ||||||
2.0 | 0.2 | Total before tax | ||||||||
(0.8 | ) | (0.1 | ) | Tax benefit | ||||||
$ | 1.2 | $ | 0.1 | Net of tax | ||||||
Amortization of pension and postretirement items | ||||||||||
Actuarial losses | (0.5 | ) | (0.6 | ) | (a) | |||||
(0.5 | ) | (0.6 | ) | Total before tax | ||||||
0.2 | 0.2 | Tax expense | ||||||||
$ | (0.3 | ) | $ | (0.4 | ) | Net of tax | ||||
Total reclassifications for the period, net of tax | $ | 0.9 | $ | (0.3 | ) | Net of tax |
Nine months ended September 30, | ||||||||||
(in millions) | 2017 | 2016 | Recognized Location | |||||||
Gains and losses on cash flow hedges | ||||||||||
Foreign currency exchange contracts | $ | 2.3 | $ | 0.3 | Cost of sales | |||||
Commodity contracts | 0.8 | (1.4 | ) | Cost of sales | ||||||
3.1 | (1.1 | ) | Total before tax | |||||||
(1.2 | ) | 0.4 | Tax (benefit) expense | |||||||
$ | 1.9 | $ | (0.7 | ) | Net of tax | |||||
Amortization of pension and postretirement items | ||||||||||
Actuarial losses | (1.5 | ) | $ | (1.9 | ) | (a) | ||||
(1.5 | ) | (1.9 | ) | Total before tax | ||||||
0.4 | 0.7 | Tax expense | ||||||||
$ | (1.1 | ) | $ | (1.2 | ) | Net of tax | ||||
Total reclassifications for the period, net of tax | $ | 0.8 | $ | (1.9 | ) | Net of tax | ||||
(a) These other comprehensive income (loss) components are included in the net periodic pension cost (see Note 17, "Employee Benefit Plans," for further details). |
|
September 30, | December 31, | |||||||
(in millions) | 2017 | 2016 | ||||||
Inventories — gross: | ||||||||
Raw materials | $ | 74.6 | $ | 68.2 | ||||
Work-in-process | 22.3 | 18.3 | ||||||
Finished goods | 101.7 | 85.1 | ||||||
Total inventories — gross | 198.6 | 171.6 | ||||||
Excess and obsolete inventory reserve | (26.0 | ) | (22.5 | ) | ||||
Net inventories at FIFO cost | 172.6 | 149.1 | ||||||
Excess of FIFO costs over LIFO value | (3.5 | ) | (3.5 | ) | ||||
Inventories — net | $ | 169.1 | $ | 145.6 |
|
September 30, | December 31, | |||||||
(in millions) | 2017 | 2016 | ||||||
Land | $ | 9.4 | $ | 7.3 | ||||
Building and improvements | 86.6 | 91.3 | ||||||
Machinery, equipment and tooling | 230.1 | 215.1 | ||||||
Furniture and fixtures | 5.9 | 5.8 | ||||||
Computer hardware and software | 55.1 | 52.9 | ||||||
Construction in progress | 13.6 | 11.2 | ||||||
Total cost | 400.7 | 383.6 | ||||||
Less accumulated depreciation | (290.2 | ) | (274.5 | ) | ||||
Property, plant and equipment — net | $ | 110.5 | $ | 109.1 |
|
(in millions) | Americas | EMEA | APAC | Total | ||||||||||||
Balance as of December 31, 2016 | $ | 832.6 | $ | 4.7 | $ | 8.0 | $ | 845.3 | ||||||||
Foreign currency translation impact | (0.1 | ) | 0.3 | 0.5 | 0.7 | |||||||||||
Balance as of September 30, 2017 | $ | 832.5 | $ | 5.0 | $ | 8.5 | $ | 846.0 |
September 30, 2017 | December 31, 2016 | |||||||||||||||||||||||
(in millions) | Gross Carrying Amount | Accumulated Amortization Amount | Net Book Value | Gross Carrying Amount | Accumulated Amortization Amount | Net Book Value | ||||||||||||||||||
Trademarks and tradenames | $ | 177.0 | $ | — | 177.0 | $ | 172.4 | $ | — | $ | 172.4 | |||||||||||||
Customer relationships | 415.3 | (187.1 | ) | 228.2 | 415.2 | (171.4 | ) | 243.8 | ||||||||||||||||
Patents | 1.7 | (1.7 | ) | — | 1.6 | (1.6 | ) | — | ||||||||||||||||
Other intangibles | 144.5 | (82.3 | ) | 62.2 | 140.7 | (72.5 | ) | 68.2 | ||||||||||||||||
Total | $ | 738.5 | $ | (271.1 | ) | $ | 467.4 | $ | 729.9 | $ | (245.5 | ) | $ | 484.4 |
|
September 30, | December 31, | |||||||
(in millions) | 2017 | 2016 | ||||||
Accounts payable: | ||||||||
Trade accounts payable | $ | 108.1 | $ | 108.4 | ||||
Total accounts payable | $ | 108.1 | $ | 108.4 | ||||
Accrued expenses and other liabilities: | ||||||||
Interest payable | $ | 5.5 | $ | 15.7 | ||||
Income taxes payable | 9.8 | 2.5 | ||||||
Employee related expenses | 29.6 | 29.8 | ||||||
Restructuring expenses | 5.9 | 3.3 | ||||||
Profit sharing and incentives | 15.7 | 14.2 | ||||||
Accrued rebates | 44.0 | 56.0 | ||||||
Deferred revenue - current | 3.3 | 4.4 | ||||||
Customer advances | 3.6 | 7.4 | ||||||
Product liability | 2.0 | 2.3 | ||||||
Miscellaneous accrued expenses | 43.5 | 38.9 | ||||||
Total accrued expenses and other liabilities | $ | 162.9 | $ | 174.5 |
|
Fiscal Quarter Ending | Consolidated Total Leverage Ratio (less than) | Actual Consolidated Total Leverage Ratio | Consolidated Interest Coverage Ratio (greater than) | Actual Consolidated Interest Coverage Ratio | ||||
September 30, 2017 | 5.00:1.00 | 4.82:1.00 | 2.75:1.00 | 3.06:1.00 |
Year | Percentage | ||
2019 | 107.1 | % | |
2020 | 104.8 | % | |
2021 | 102.4 | % | |
2022 and thereafter | 100.0 | % |
September 30, | December 31, | |||||||
(in millions) | 2017 | 2016 | ||||||
Revolving credit facility | $ | 80.0 | $ | 63.5 | ||||
Term Loan B | 815.0 | 825.0 | ||||||
Senior Notes due 2024 | 425.0 | 425.0 | ||||||
Other | 6.9 | 3.3 | ||||||
Total debt and capital leases, including current portion | 1,326.9 | 1,316.8 | ||||||
Less: current portion and short-term borrowings | (4.5 | ) | (1.6 | ) | ||||
Less: unamortized debt issuance costs and debt discount | (30.1 | ) | (36.5 | ) | ||||
Plus: fair value of the interest rate swap | 0.3 | — | ||||||
Total long-term debt and capital leases | $ | 1,292.6 | $ | 1,278.7 |
|
(in millions, except share data) | Shares | Common Stock | Additional Paid-In Capital (Deficit) | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Total Equity (Deficit) | |||||||||||||||||
Balance at December 31, 2016 | 138,601,327 | $ | 1.4 | $ | (72.0 | ) | $ | 70.5 | $ | (43.4 | ) | $ | (43.5 | ) | |||||||||
Net earnings | — | — | — | 68.2 | — | 68.2 | |||||||||||||||||
Issuance of common stock, equity-based compensation plans | 710,972 | — | 3.2 | — | — | 3.2 | |||||||||||||||||
Stock-based compensation expense | — | — | 9.2 | — | — | 9.2 | |||||||||||||||||
Separation related adjustment (1) | — | — | (7.2 | ) | — | — | (7.2 | ) | |||||||||||||||
Other comprehensive income ("OCI") | — | — | — | — | 14.1 | 14.1 | |||||||||||||||||
Balance at September 30, 2017 | 139,312,299 | $ | 1.4 | $ | (66.8 | ) | $ | 138.7 | $ | (29.3 | ) | $ | 44.0 | ||||||||||
(1) See Note 11, "Income Taxes," for discussion of the separation related adjustment. |
(in millions) | Foreign Currency Translation | Gains and Losses on Cash Flow Hedges | Pension & Postretirement | Total | ||||||||||||
Balance at December 31, 2016 | $ | (9.8 | ) | $ | 0.8 | $ | (34.4 | ) | $ | (43.4 | ) | |||||
OCI before reclassifications | 7.0 | (a) | (0.4 | ) | — | 6.6 | ||||||||||
Amounts reclassified from AOCI | — | (0.2 | ) | 0.4 | 0.2 | |||||||||||
Net current period OCI | 7.0 | (0.6 | ) | 0.4 | 6.8 | |||||||||||
Balance at March 31, 2017 | $ | (2.8 | ) | $ | 0.2 | $ | (34.0 | ) | $ | (36.6 | ) | |||||
OCI before reclassifications | $ | 3.7 | (a) | $ | 1.1 | $ | — | $ | 4.8 | |||||||
Amounts reclassified from AOCI | — | (0.4 | ) | 0.4 | — | |||||||||||
Net current period OCI | 3.7 | 0.7 | 0.4 | 4.8 | ||||||||||||
Balance at June 30, 2017 | $ | 0.9 | $ | 0.9 | $ | (33.6 | ) | $ | (31.8 | ) | ||||||
OCI before reclassifications | $ | 1.4 | (a) | $ | 2.0 | $ | — | $ | 3.4 | |||||||
Amounts reclassified from AOCI | — | (1.2 | ) | 0.3 | (0.9 | ) | ||||||||||
Net current period OCI | 1.4 | 0.8 | 0.3 | 2.5 | ||||||||||||
Balance at September 30, 2017 | $ | 2.3 | $ | 1.7 | $ | (33.3 | ) | $ | (29.3 | ) |
(in millions) | Foreign Currency Translation | Gains and Losses on Cash Flow Hedges | Pension & Postretirement | Total | ||||||||||||
Balance at December 31, 2015 | $ | (7.9 | ) | $ | (1.8 | ) | $ | (34.8 | ) | $ | (44.5 | ) | ||||
OCI before reclassifications | 17.2 | 0.3 | (9.4 | ) | 8.1 | |||||||||||
Amounts reclassified from AOCI | — | 0.6 | 0.5 | 1.1 | ||||||||||||
Net current period OCI | 17.2 | 0.9 | (8.9 | ) | 9.2 | |||||||||||
Balance at March 31, 2016 | $ | 9.3 | $ | (0.9 | ) | $ | (43.7 | ) | $ | (35.3 | ) | |||||
OCI before reclassifications | $ | (6.1 | ) | $ | 1.1 | $ | 0.1 | $ | (4.9 | ) | ||||||
Amounts reclassified from AOCI | — | 0.4 | 0.2 | 0.6 | ||||||||||||
Net current period OCI | (6.1 | ) | 1.5 | 0.3 | (4.3 | ) | ||||||||||
Balance at June 30, 2016 | $ | 3.2 | $ | 0.6 | $ | (43.4 | ) | $ | (39.6 | ) | ||||||
OCI before reclassifications | $ | (0.5 | ) | $ | (0.2 | ) | $ | (1.1 | ) | $ | (1.8 | ) | ||||
Amounts reclassified from AOCI | — | (0.1 | ) | 0.4 | 0.3 | |||||||||||
Net current period OCI | (0.5 | ) | (0.3 | ) | (0.7 | ) | (1.5 | ) | ||||||||
Balance at September 30, 2016 | $ | 2.7 | $ | 0.3 | $ | (44.1 | ) | $ | (41.1 | ) |
Derivatives in cash flow hedging relationships (in millions) | Amount of gain (loss) recognized in AOCI on derivative (effective portion, net of tax) | 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 September 30, | Three Months Ended September 30, | |||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||
Foreign currency exchange contracts | $ | 1.0 | $ | (0.3 | ) | Cost of sales | $ | 1.6 | $ | 0.4 | ||||||||
Commodity contracts | 0.5 | — | Cost of sales | 0.4 | (0.2 | ) | ||||||||||||
Interest rate swap contracts | 0.5 | — | Interest expense | — | — | |||||||||||||
Cross-currency swap contract (1) | (5.8 | ) | — | Selling, general and administrative expense | — | — | ||||||||||||
Total | $ | (3.8 | ) | $ | (0.3 | ) | $ | 2.0 | $ | 0.2 |
Derivatives in cash flow hedging relationships (in millions) | Amount of gain (loss) recognized in AOCI on derivative (effective portion, net of tax) | Location of gain (loss) reclassified from AOCI into income (effective portion) | Amount of gain (loss) reclassified from AOCI into income (effective portion) | |||||||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||
Foreign currency exchange contracts | $ | 2.5 | $ | 0.4 | Cost of sales | $ | 2.3 | $ | 0.3 | |||||||||
Commodity contracts | 0.5 | 1.7 | Cost of sales | 0.8 | (1.4 | ) | ||||||||||||
Interest rate swap contracts | (0.6 | ) | — | Interest expense | — | — | ||||||||||||
Cross-currency swap contract (1) | (3.9 | ) | — | Selling, general and administrative expense | — | — | ||||||||||||
Total | $ | (1.5 | ) | $ | 2.1 | $ | 3.1 | $ | (1.1 | ) |
Derivatives 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 September 30, | ||||||||||
2017 | 2016 | |||||||||
Commodity contracts | $ | (0.1 | ) | $ | — | Cost of sales | ||||
Total | $ | (0.1 | ) | $ | — |
Derivatives 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) | ||||||||
Nine Months Ended September 30, | ||||||||||
2017 | 2016 | |||||||||
Commodity contracts | $ | 0.1 | $ | — | Cost of sales | |||||
Total | $ | 0.1 | $ | — |
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 September 30, | ||||||||||
2017 | 2016 | |||||||||
Foreign currency exchange contracts | $ | (0.5 | ) | $ | 0.6 | Other expense (income) — net | ||||
Total | $ | (0.5 | ) | $ | 0.6 |
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 | ||||||||
Nine Months Ended September 30, | ||||||||||
2017 | 2016 | |||||||||
Foreign currency exchange contracts | $ | (4.9 | ) | $ | — | Other expense (income) — net | ||||
Commodity contracts | — | 0.7 | Other expense (income) — net | |||||||
Total | $ | (4.9 | ) | $ | 0.7 |
Three months ended September 30, | ||||||||||
(in millions) | 2017 | 2016 | Recognized Location | |||||||
Gains and losses on cash flow hedges | ||||||||||
Foreign currency exchange contracts | $ | 1.6 | $ | 0.4 | Cost of sales | |||||
Commodity contracts | 0.4 | (0.2 | ) | Cost of sales | ||||||
2.0 | 0.2 | Total before tax | ||||||||
(0.8 | ) | (0.1 | ) | Tax benefit | ||||||
$ | 1.2 | $ | 0.1 | Net of tax | ||||||
Amortization of pension and postretirement items | ||||||||||
Actuarial losses | (0.5 | ) | (0.6 | ) | (a) | |||||
(0.5 | ) | (0.6 | ) | Total before tax | ||||||
0.2 | 0.2 | Tax expense | ||||||||
$ | (0.3 | ) | $ | (0.4 | ) | Net of tax | ||||
Total reclassifications for the period, net of tax | $ | 0.9 | $ | (0.3 | ) | Net of tax |
Nine months ended September 30, | ||||||||||
(in millions) | 2017 | 2016 | Recognized Location | |||||||
Gains and losses on cash flow hedges | ||||||||||
Foreign currency exchange contracts | $ | 2.3 | $ | 0.3 | Cost of sales | |||||
Commodity contracts | 0.8 | (1.4 | ) | Cost of sales | ||||||
3.1 | (1.1 | ) | Total before tax | |||||||
(1.2 | ) | 0.4 | Tax (benefit) expense | |||||||
$ | 1.9 | $ | (0.7 | ) | Net of tax | |||||
Amortization of pension and postretirement items | ||||||||||
Actuarial losses | (1.5 | ) | $ | (1.9 | ) | (a) | ||||
(1.5 | ) | (1.9 | ) | Total before tax | ||||||
0.4 | 0.7 | Tax expense | ||||||||
$ | (1.1 | ) | $ | (1.2 | ) | Net of tax | ||||
Total reclassifications for the period, net of tax | $ | 0.8 | $ | (1.9 | ) | Net of tax | ||||
(a) These other comprehensive income (loss) components are included in the net periodic pension cost (see Note 17, "Employee Benefit Plans," for further details). |
|
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Stock-based compensation expense: | ||||||||||||||||
Selling, general and administrative expenses | $ | 2.1 | $ | 1.2 | $ | 6.3 | $ | 3.8 | ||||||||
Separation expense | — | 0.3 | — | 1.1 | ||||||||||||
Restructuring expense | 0.3 | — | 2.9 | — | ||||||||||||
Total stock-based compensation expense | $ | 2.4 | $ | 1.5 | $ | 9.2 | $ | 4.9 |
|
(in millions) | ||||
Balance at December 31, 2016 | $ | 36.3 | ||
Accruals for warranties issued | 24.8 | |||
Settlements made (in cash or in kind) | (25.9 | ) | ||
Foreign currency translation impact | 0.7 | |||
Balance at September 30, 2017 | $ | 35.9 |
|
(in millions) | ||||
Balance at December 31, 2016 | $ | 14.4 | ||
Restructuring charges | 8.5 | |||
Use of reserve | (3.8 | ) | ||
Non-cash adjustment (1) | (2.9 | ) | ||
Balance at September 30, 2017 | $ | 16.2 |
|
Three Months Ended September 30, | ||||||||||||||||
2017 | 2016 | |||||||||||||||
(in millions) | Pension Plans | Postretirement Health and Other Plans | Pension Plans | Postretirement Health and Other Plans | ||||||||||||
Service cost - benefits earned during the period | $ | — | $ | — | $ | 0.1 | $ | — | ||||||||
Interest cost of projected benefit obligations | 1.3 | 0.1 | 2.0 | 0.1 | ||||||||||||
Expected return on plan assets | (1.5 | ) | — | (1.5 | ) | — | ||||||||||
Amortization of actuarial net loss | 0.5 | — | 0.6 | — | ||||||||||||
Net periodic benefit costs | $ | 0.3 | $ | 0.1 | $ | 1.2 | $ | 0.1 |
Nine Months Ended September 30, | ||||||||||||||||
2017 | 2016 | |||||||||||||||
(in millions) | Pension Plans | Postretirement Health and Other Plans | Pension Plans | Postretirement Health and Other Plans | ||||||||||||
Service cost - benefits earned during the period | $ | — | $ | — | $ | 0.2 | $ | — | ||||||||
Interest cost of projected benefit obligations | 3.9 | 0.2 | 6.3 | 0.3 | ||||||||||||
Expected return on plan assets | (4.5 | ) | — | (4.7 | ) | — | ||||||||||
Amortization of actuarial net loss | 1.5 | — | 1.9 | — | ||||||||||||
Net periodic benefit costs | $ | 0.9 | $ | 0.2 | $ | 3.7 | $ | 0.3 |
|
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
Millions of dollars, except percentage data | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Net sales: | ||||||||||||||||
Americas | $ | 302.2 | $ | 316.9 | $ | 875.8 | $ | 881.7 | ||||||||
EMEA | 80.3 | 67.9 | 224.2 | 212.8 | ||||||||||||
APAC | 51.8 | 52.5 | 138.4 | 134.5 | ||||||||||||
Elimination of intersegment sales | (53.9 | ) | (53.3 | ) | (158.9 | ) | (151.1 | ) | ||||||||
Total net sales | $ | 380.4 | $ | 384.0 | $ | 1,079.5 | $ | 1,077.9 | ||||||||
Segment Adjusted Operating EBITDA: | ||||||||||||||||
Americas | $ | 66.3 | $ | 67.9 | $ | 172.2 | $ | 176.0 | ||||||||
EMEA | 17.4 | 10.4 | 45.0 | 28.8 | ||||||||||||
APAC | 7.6 | 8.9 | 19.3 | 17.9 | ||||||||||||
Total Segment Adjusted Operating EBITDA | 91.3 | 87.2 | 236.5 | 222.7 | ||||||||||||
Corporate and unallocated | (9.8 | ) | (10.9 | ) | (35.8 | ) | (32.5 | ) | ||||||||
Amortization expense | (7.9 | ) | (7.8 | ) | (23.4 | ) | (23.5 | ) | ||||||||
Depreciation expense | (4.1 | ) | (4.2 | ) | (12.1 | ) | (13.0 | ) | ||||||||
Separation expense | (0.3 | ) | (1.4 | ) | (1.5 | ) | (5.7 | ) | ||||||||
Restructuring expense | (2.8 | ) | (0.6 | ) | (8.5 | ) | (2.2 | ) | ||||||||
Gain (loss) from impairment or disposal of assets — net | 3.9 | (1.7 | ) | 4.1 | (1.7 | ) | ||||||||||
Earnings from operations | 70.3 | 60.6 | 159.3 | 144.1 | ||||||||||||
Interest expense | (21.7 | ) | (25.0 | ) | (65.9 | ) | (60.5 | ) | ||||||||
Interest expense on notes with MTW — net | — | — | — | (0.1 | ) | |||||||||||
Loss on early extinguishment of debt | (1.0 | ) | — | (4.4 | ) | — | ||||||||||
Other expense — net | (2.6 | ) | (3.6 | ) | (7.0 | ) | (9.6 | ) | ||||||||
Earnings before income taxes | $ | 45.0 | $ | 32.0 | $ | 82.0 | $ | 73.9 | ||||||||
Adjusted Operating EBITDA % by segment (1) : | ||||||||||||||||
Americas | 21.9 | % | 21.4 | % | 19.7 | % | 20.0 | % | ||||||||
EMEA | 21.7 | % | 15.3 | % | 20.1 | % | 13.5 | % | ||||||||
APAC | 14.7 | % | 17.0 | % | 13.9 | % | 13.3 | % | ||||||||
(1) Adjusted Operating EBITDA % in the section above is calculated by dividing the dollar amount of Adjusted Operating EBITDA by net sales for each respective segment. | ||||||||||||||||
Net sales by geographic area (2): | ||||||||||||||||
United States | $ | 248.9 | $ | 257.5 | $ | 710.3 | $ | 713.7 | ||||||||
Other Americas | 23.1 | 26.2 | 70.9 | 73.2 | ||||||||||||
EMEA | 62.6 | 56.7 | 179.2 | 177.5 | ||||||||||||
APAC | 45.8 | 43.6 | 119.1 | 113.5 | ||||||||||||
Total net sales by geographic area | $ | 380.4 | $ | 384.0 | $ | 1,079.5 | $ | 1,077.9 | ||||||||
(2) Net sales in the section above are attributed to geographic regions based on location of customer. |
(in millions) | September 30, 2017 | December 31, 2016 | ||||||
Total assets by segment: | ||||||||
Americas | $ | 1,472.6 | $ | 1,463.7 | ||||
EMEA | 124.6 | 102.6 | ||||||
APAC | 127.4 | 110.8 | ||||||
Corporate | 137.5 | 92.0 | ||||||
Total assets | $ | 1,862.1 | $ | 1,769.1 |
|
Three months ended September 30, 2017 | ||||||||||||||||||||
(in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Net sales | $ | — | $ | 273.8 | $ | 198.8 | $ | (92.2 | ) | $ | 380.4 | |||||||||
Cost of sales | 1.2 | 187.0 | 140.5 | (92.2 | ) | 236.5 | ||||||||||||||
Gross profit | (1.2 | ) | 86.8 | 58.3 | — | 143.9 | ||||||||||||||
Selling, general and administrative expenses | 9.6 | 34.4 | 22.5 | — | 66.5 | |||||||||||||||
Amortization expense | — | 7.1 | 0.8 | — | 7.9 | |||||||||||||||
Separation expense | 0.3 | — | — | — | 0.3 | |||||||||||||||
Restructuring expense | 0.1 | 2.4 | 0.3 | — | 2.8 | |||||||||||||||
Gain from impairment or disposal of assets — net | — | (0.1 | ) | (3.8 | ) | — | (3.9 | ) | ||||||||||||
(Loss) earnings from operations | (11.2 | ) | 43.0 | 38.5 | — | 70.3 | ||||||||||||||
Interest expense | 20.7 | 0.3 | 0.7 | — | 21.7 | |||||||||||||||
Loss on early extinguishment of debt | 1.0 | — | — | — | 1.0 | |||||||||||||||
Other (income) expense — net | (3.0 | ) | (5.2 | ) | 10.8 | — | 2.6 | |||||||||||||
Equity in earnings (loss) of subsidiaries | 52.1 | 22.1 | — | (74.2 | ) | — | ||||||||||||||
Earnings (loss) before income taxes | 22.2 | 70.0 | 27.0 | (74.2 | ) | 45.0 | ||||||||||||||
Income tax (benefit) expense | (10.9 | ) | 17.9 | 4.9 | — | 11.9 | ||||||||||||||
Net earnings (loss) | $ | 33.1 | $ | 52.1 | $ | 22.1 | $ | (74.2 | ) | $ | 33.1 | |||||||||
Total other comprehensive income (loss), net of tax | 2.5 | 7.4 | 6.6 | (14.0 | ) | 2.5 | ||||||||||||||
Comprehensive income (loss) | $ | 35.6 | $ | 59.5 | $ | 28.7 | $ | (88.2 | ) | $ | 35.6 |
Three months ended September 30, 2016 | ||||||||||||||||||||
(in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Net sales | $ | — | $ | 285.4 | $ | 192.2 | $ | (93.6 | ) | 384.0 | ||||||||||
Cost of sales | 1.2 | 197.2 | 137.2 | (93.6 | ) | 242.0 | ||||||||||||||
Gross profit | (1.2 | ) | 88.2 | 55.0 | — | 142.0 | ||||||||||||||
Selling, general and administrative expenses | 8.3 | 37.9 | 23.7 | — | 69.9 | |||||||||||||||
Amortization expense | — | 7.1 | 0.7 | — | 7.8 | |||||||||||||||
Separation expense | 1.3 | 0.1 | — | — | 1.4 | |||||||||||||||
Restructuring expense | — | 0.6 | — | — | 0.6 | |||||||||||||||
Asset impairment expense | — | 1.7 | — | — | 1.7 | |||||||||||||||
(Loss) earnings from operations | (10.8 | ) | 40.8 | 30.6 | — | 60.6 | ||||||||||||||
Interest expense | 24.2 | 0.2 | 0.6 | — | 25.0 | |||||||||||||||
Other expense — net | 1.4 | 1.4 | 0.8 | — | 3.6 | |||||||||||||||
Equity in earnings (loss) of subsidiaries | 41.0 | 22.6 | — | (63.6 | ) | — | ||||||||||||||
Earnings (loss) before income taxes | 4.6 | 61.8 | 29.2 | (63.6 | ) | 32.0 | ||||||||||||||
Income tax (benefit) expense | (20.3 | ) | 20.8 | 6.6 | — | 7.1 | ||||||||||||||
Net earnings (loss) | $ | 24.9 | $ | 41.0 | $ | 22.6 | $ | (63.6 | ) | $ | 24.9 | |||||||||
Total other comprehensive (loss) income, net of tax | (1.5 | ) | (0.8 | ) | (0.7 | ) | 1.5 | (1.5 | ) | |||||||||||
Comprehensive income (loss) | $ | 23.4 | $ | 40.2 | $ | 21.9 | $ | (62.1 | ) | $ | 23.4 |
Nine months ended September 30, 2017 | ||||||||||||||||||||
(in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Net sales | $ | — | $ | 792.4 | $ | 567.2 | $ | (280.1 | ) | $ | 1,079.5 | |||||||||
Cost of sales | 2.9 | 555.7 | 396.9 | (280.1 | ) | 675.4 | ||||||||||||||
Gross profit | (2.9 | ) | 236.7 | 170.3 | — | 404.1 | ||||||||||||||
Selling, general and administrative expenses | 29.4 | 116.1 | 70.0 | — | 215.5 | |||||||||||||||
Amortization expense | — | 21.3 | 2.1 | — | 23.4 | |||||||||||||||
Separation expense | 1.5 | — | — | — | 1.5 | |||||||||||||||
Restructuring expense | 4.9 | 3.2 | 0.4 | — | 8.5 | |||||||||||||||
(Gain) loss from impairment or disposal of assets — net | — | (0.5 | ) | (3.6 | ) | — | (4.1 | ) | ||||||||||||
(Loss) earnings from operations | (38.7 | ) | 96.6 | 101.4 | — | 159.3 | ||||||||||||||
Interest expense | 63.1 | 0.8 | 2.0 | — | 65.9 | |||||||||||||||
Loss on early extinguishment of debt | 4.4 | — | — | — | 4.4 | |||||||||||||||
Other (income) expense — net | (8.5 | ) | (14.9 | ) | 30.4 | — | 7.0 | |||||||||||||
Equity in earnings (loss) of subsidiaries | 131.7 | 62.0 | — | (193.7 | ) | — | ||||||||||||||
Earnings (loss) before income taxes | 34.0 | 172.7 | 69.0 | (193.7 | ) | 82.0 | ||||||||||||||
Income tax (benefit) expense | (34.2 | ) | 41.0 | 7.0 | — | 13.8 | ||||||||||||||
Net earnings (loss) | $ | 68.2 | $ | 131.7 | $ | 62.0 | $ | (193.7 | ) | $ | 68.2 | |||||||||
Total other comprehensive income (loss), net of tax | 14.1 | 18.2 | 15.4 | (33.6 | ) | 14.1 | ||||||||||||||
Comprehensive income (loss) | $ | 82.3 | $ | 149.9 | $ | 77.4 | $ | (227.3 | ) | $ | 82.3 |
Nine months ended September 30, 2016 | ||||||||||||||||||||
(in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Net sales | $ | — | $ | 804.4 | $ | 546.6 | $ | (273.1 | ) | $ | 1,077.9 | |||||||||
Cost of sales | 2.4 | 559.5 | 394.8 | (273.1 | ) | 683.6 | ||||||||||||||
Gross profit | (2.4 | ) | 244.9 | 151.8 | — | 394.3 | ||||||||||||||
Selling, general and administrative expenses | 26.6 | 112.7 | 77.8 | — | 217.1 | |||||||||||||||
Amortization expense | — | 21.4 | 2.1 | — | 23.5 | |||||||||||||||
Separation expense | 5.6 | — | 0.1 | — | 5.7 | |||||||||||||||
Restructuring expense | — | 1.4 | 0.8 | — | 2.2 | |||||||||||||||
Asset impairment expense | — | 1.7 | — | — | 1.7 | |||||||||||||||
(Loss) earnings from operations | (34.6 | ) | 107.7 | 71.0 | — | 144.1 | ||||||||||||||
Interest expense | 58.2 | 1.0 | 1.3 | — | 60.5 | |||||||||||||||
Interest expense on notes with MTW — net | — | — | 0.1 | — | 0.1 | |||||||||||||||
Other expense (income) — net | 12.4 | 46.9 | (49.7 | ) | — | 9.6 | ||||||||||||||
Equity in earnings (loss) of subsidiaries | 114.9 | 86.8 | — | (201.7 | ) | — | ||||||||||||||
Earnings (loss) before income taxes | 9.7 | 146.6 | 119.3 | (201.7 | ) | 73.9 | ||||||||||||||
Income tax (benefit) expense | (48.4 | ) | 31.7 | 32.5 | — | 15.8 | ||||||||||||||
Net earnings (loss) | $ | 58.1 | $ | 114.9 | $ | 86.8 | $ | (201.7 | ) | $ | 58.1 | |||||||||
Total other comprehensive income (loss), net of tax | 3.4 | 14.8 | 20.2 | (35.0 | ) | 3.4 | ||||||||||||||
Comprehensive income (loss) | $ | 61.5 | $ | 129.7 | $ | 107.0 | $ | (236.7 | ) | $ | 61.5 |
September 30, 2017 | ||||||||||||||||||||
(in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Assets | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 7.6 | $ | 2.9 | $ | 117.9 | $ | — | $ | 128.4 | ||||||||||
Restricted cash | — | — | 0.2 | — | 0.2 | |||||||||||||||
Accounts receivable — net | — | 0.1 | 88.3 | (2.0 | ) | 86.4 | ||||||||||||||
Inventories — net | — | 84.2 | 84.9 | — | 169.1 | |||||||||||||||
Prepaids and other current assets | 5.7 | 6.6 | 9.2 | — | 21.5 | |||||||||||||||
Total current assets | 13.3 | 93.8 | 300.5 | (2.0 | ) | 405.6 | ||||||||||||||
Property, plant and equipment — net | 1.0 | 67.6 | 41.9 | — | 110.5 | |||||||||||||||
Goodwill | — | 832.4 | 13.6 | — | 846.0 | |||||||||||||||
Other intangible assets — net | — | 402.2 | 65.2 | — | 467.4 | |||||||||||||||
Intercompany long-term note receivable | — | 20.0 | — | (20.0 | ) | — | ||||||||||||||
Due from affiliates | — | 3,144.6 | — | (3,144.6 | ) | — | ||||||||||||||
Investment in subsidiaries | 3,912.0 | — | — | (3,912.0 | ) | — | ||||||||||||||
Other non-current assets | 4.2 | 5.2 | 30.3 | (7.1 | ) | 32.6 | ||||||||||||||
Total assets | $ | 3,930.5 | $ | 4,565.8 | $ | 451.5 | $ | (7,085.7 | ) | $ | 1,862.1 | |||||||||
Liabilities and equity | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Accounts payable | $ | 0.2 | $ | 58.1 | $ | 51.8 | $ | (2.0 | ) | $ | 108.1 | |||||||||
Accrued expenses and other liabilities | 26.0 | 84.5 | 52.4 | — | 162.9 | |||||||||||||||
Short-term borrowings | — | — | 4.0 | — | 4.0 | |||||||||||||||
Current portion of long-term debt and capital leases | — | 0.5 | — | — | 0.5 | |||||||||||||||
Product warranties | — | 16.6 | 7.4 | — | 24.0 | |||||||||||||||
Total current liabilities | 26.2 | 159.7 | 115.6 | (2.0 | ) | 299.5 | ||||||||||||||
Long-term debt and capital leases | 1,290.3 | 1.3 | 1.0 | — | 1,292.6 | |||||||||||||||
Deferred income taxes | 120.0 | — | 19.2 | — | 139.2 | |||||||||||||||
Pension and post-retirement health obligations | 44.5 | 4.8 | — | (7.1 | ) | 42.2 | ||||||||||||||
Intercompany long-term note payable | 15.7 | — | 4.3 | (20.0 | ) | — | ||||||||||||||
Due to affiliates | 2,374.6 | — | 770.0 | (3,144.6 | ) | — | ||||||||||||||
Investment in subsidiaries | — | 462.6 | — | (462.6 | ) | — | ||||||||||||||
Other long-term liabilities | 15.2 | 25.4 | 4.0 | — | 44.6 | |||||||||||||||
Total non-current liabilities | 3,860.3 | 494.1 | 798.5 | (3,634.3 | ) | 1,518.6 | ||||||||||||||
Total equity (deficit): | ||||||||||||||||||||
Total equity (deficit) | 44.0 | 3,912.0 | (462.6 | ) | (3,449.4 | ) | 44.0 | |||||||||||||
Total liabilities and equity (deficit) | $ | 3,930.5 | $ | 4,565.8 | $ | 451.5 | $ | (7,085.7 | ) | $ | 1,862.1 |
December 31, 2016 | ||||||||||||||||||||
(in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Assets | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 0.4 | $ | 2.3 | $ | 51.1 | $ | — | $ | 53.8 | ||||||||||
Restricted cash | — | — | 6.4 | — | 6.4 | |||||||||||||||
Accounts receivable — net | 0.5 | — | 86.1 | (4.9 | ) | 81.7 | ||||||||||||||
Inventories — net | — | 74.3 | 71.3 | — | 145.6 | |||||||||||||||
Prepaids and other current assets | 0.9 | 4.5 | 8.5 | — | 13.9 | |||||||||||||||
Current assets held for sale | — | 2.3 | 4.5 | — | 6.8 | |||||||||||||||
Total current assets | 1.8 | 83.4 | 227.9 | (4.9 | ) | 308.2 | ||||||||||||||
Property, plant and equipment — net | 1.2 | 67.9 | 40.0 | — | 109.1 | |||||||||||||||
Goodwill | — | 832.4 | 12.9 | — | 845.3 | |||||||||||||||
Other intangible assets — net | — | 423.5 | 60.9 | — | 484.4 | |||||||||||||||
Intercompany long-term note receivable | — | 20.0 | — | (20.0 | ) | — | ||||||||||||||
Due from affiliates | — | 3,085.8 | — | (3,085.8 | ) | — | ||||||||||||||
Investment in subsidiaries | 3,780.3 | — | — | (3,780.3 | ) | — | ||||||||||||||
Other non-current assets | 2.7 | 5.1 | 19.7 | (5.4 | ) | 22.1 | ||||||||||||||
Total assets | $ | 3,786.0 | $ | 4,518.1 | $ | 361.4 | $ | (6,896.4 | ) | $ | 1,769.1 | |||||||||
Liabilities and equity | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Accounts payable | $ | 0.1 | $ | 64.6 | $ | 48.6 | $ | (4.9 | ) | $ | 108.4 | |||||||||
Accrued expenses and other liabilities | 14.1 | 97.5 | 62.9 | — | 174.5 | |||||||||||||||
Current portion of capital leases | — | 0.5 | 1.1 | — | 1.6 | |||||||||||||||
Product warranties | — | 18.4 | 9.5 | — | 27.9 | |||||||||||||||
Current liabilities held for sale | — | — | 0.7 | — | 0.7 | |||||||||||||||
Total current liabilities | 14.2 | 181.0 | 122.8 | (4.9 | ) | 313.1 | ||||||||||||||
Long-term debt and capital leases | 1,277.0 | 1.7 | — | — | 1,278.7 | |||||||||||||||
Deferred income taxes | 120.5 | — | 17.3 | — | 137.8 | |||||||||||||||
Pension and post-retirement health obligations | 47.9 | 4.9 | — | (5.4 | ) | 47.4 | ||||||||||||||
Intercompany long-term note payable | 15.7 | — | 4.3 | (20.0 | ) | — | ||||||||||||||
Due to affiliates | 2,344.8 | — | 741.0 | (3,085.8 | ) | — | ||||||||||||||
Investment in subsidiaries | — | 524.6 | — | (524.6 | ) | — | ||||||||||||||
Other long-term liabilities | 9.4 | 25.6 | 0.6 | — | 35.6 | |||||||||||||||
Total non-current liabilities | 3,815.3 | 556.8 | 763.2 | (3,635.8 | ) | 1,499.5 | ||||||||||||||
Total (deficit) equity: | ||||||||||||||||||||
Total (deficit) equity | (43.5 | ) | 3,780.3 | (524.6 | ) | (3,255.7 | ) | (43.5 | ) | |||||||||||
Total liabilities and equity (deficit) | $ | 3,786.0 | $ | 4,518.1 | $ | 361.4 | $ | (6,896.4 | ) | $ | 1,769.1 |
Nine Months Ended September 30, 2017 | ||||||||||||||||||||
(in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (30.0 | ) | $ | 62.8 | $ | 33.0 | $ | — | $ | 65.8 | |||||||||
Cash flows from investing activities | ||||||||||||||||||||
Capital expenditures | (0.4 | ) | (8.9 | ) | (4.8 | ) | — | (14.1 | ) | |||||||||||
Proceeds from sale of property, plant and equipment | — | 6.0 | 6.3 | 12.3 | ||||||||||||||||
Changes in restricted cash | — | — | 6.3 | — | 6.3 | |||||||||||||||
Intercompany investment | — | (59.0 | ) | — | 59.0 | — | ||||||||||||||
Net cash (used in) provided by investing activities | (0.4 | ) | (61.9 | ) | 7.8 | 59.0 | 4.5 | |||||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Proceeds from long-term debt and capital leases | 140.3 | — | 0.6 | — | 140.9 | |||||||||||||||
Repayments on long-term debt and capital leases | (133.8 | ) | (0.3 | ) | (0.7 | ) | — | (134.8 | ) | |||||||||||
Debt issuance costs | (2.0 | ) | — | — | — | (2.0 | ) | |||||||||||||
Changes in short-term borrowings | — | — | 4.0 | — | 4.0 | |||||||||||||||
Exercises of stock options | 3.2 | — | — | — | 3.2 | |||||||||||||||
Intercompany financing | 29.9 | — | 29.1 | (59.0 | ) | — | ||||||||||||||
Net cash provided by (used in) financing activities | 37.6 | (0.3 | ) | 33.0 | (59.0 | ) | 11.3 | |||||||||||||
Effect of exchange rate changes on cash | — | — | (7.0 | ) | — | (7.0 | ) | |||||||||||||
Net increase in cash and cash equivalents | 7.2 | 0.6 | 66.8 | — | 74.6 | |||||||||||||||
Balance at beginning of period | 0.4 | 2.3 | 51.1 | — | 53.8 | |||||||||||||||
Balance at end of period | $ | 7.6 | $ | 2.9 | $ | 117.9 | $ | — | $ | 128.4 |
Nine Months Ended September 30, 2016 | ||||||||||||||||||||
(in millions) | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (4.0 | ) | $ | 98.5 | $ | (42.7 | ) | $ | — | $ | 51.8 | ||||||||
Cash flows from investing activities | ||||||||||||||||||||
Capital expenditures | (0.6 | ) | (5.4 | ) | (4.8 | ) | — | (10.8 | ) | |||||||||||
Changes in restricted cash | — | — | (2.9 | ) | — | (2.9 | ) | |||||||||||||
Intercompany investment | — | (51.0 | ) | — | 51.0 | — | ||||||||||||||
Proceeds from intercompany note | — | — | 42.4 | (42.4 | ) | — | ||||||||||||||
Net cash (used in) provided by investing activities | (0.6 | ) | (56.4 | ) | 34.7 | 8.6 | (13.7 | ) | ||||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Proceeds from long-term debt and capital leases | 1,466.9 | — | 8.7 | — | 1,475.6 | |||||||||||||||
Repayments on long-term debt and capital leases | (86.8 | ) | (0.5 | ) | (7.3 | ) | — | (94.6 | ) | |||||||||||
Debt issuance costs | (41.2 | ) | — | — | — | (41.2 | ) | |||||||||||||
Dividend paid to MTW | (1,362.0 | ) | — | — | — | (1,362.0 | ) | |||||||||||||
Net transactions with MTW | 7.0 | — | — | — | 7.0 | |||||||||||||||
Exercises of stock options | 15.1 | — | — | — | 15.1 | |||||||||||||||
Intercompany financing | 15.7 | — | 35.3 | (51.0 | ) | — | ||||||||||||||
Repayments on intercompany note | — | (42.4 | ) | — | 42.4 | — | ||||||||||||||
Net cash provided by (used in) financing activities | 14.7 | (42.9 | ) | 36.7 | (8.6 | ) | (0.1 | ) | ||||||||||||
Effect of exchange rate changes on cash | — | — | (0.4 | ) | — | (0.4 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | 10.1 | (0.8 | ) | 28.3 | — | 37.6 | ||||||||||||||
Balance at beginning of period | — | 3.5 | 28.5 | — | 32.0 | |||||||||||||||
Balance at end of period | $ | 10.1 | $ | 2.7 | $ | 56.8 | $ | — | $ | 69.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|