Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 27, 2018 | |
Document Information [Line Items] | ||
Entity Registrant Name | HYSTER-YALE MATERIALS HANDLING, INC. | |
Entity Central Index Key | 1,173,514 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Shares Outstanding | 12,668,423 | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Shares Outstanding | 3,887,245 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Current Assets | ||
Cash and cash equivalents | $ 152.4 | $ 220.1 |
Accounts receivable, net | 424.7 | 453 |
Inventories, net | 467.1 | 411.9 |
Prepaid expenses and other | 56.4 | 46.4 |
Total Current Assets | 1,100.6 | 1,131.4 |
Property, Plant and Equipment, Net | 286.8 | 265.4 |
Intangible Assets | 70.3 | 56.1 |
Goodwill | 133.3 | 59.1 |
Deferred Income Taxes | 15 | 16.6 |
Investment in Unconsolidated Affiliates | 63.3 | 81.9 |
Other Non-current Assets | 40.7 | 37.4 |
Total Assets | 1,710 | 1,647.9 |
Current Liabilities | ||
Accounts payable | 432 | 385.8 |
Accounts payable, affiliate | 18.4 | 18.1 |
Revolving credit facilities | 9.2 | 6.1 |
Current maturities of long-term debt | 63.5 | 68.4 |
Accrued payroll | 38.3 | 51.7 |
Other current liabilities | 169 | 162.3 |
Total Current Liabilities | 730.4 | 692.4 |
Long-term Debt | 200.4 | 216.2 |
Self-insurance Liabilities | 31.1 | 33.5 |
Pension Obligations | 10.3 | 11.1 |
Deferred Tax Liabilities | 17.7 | 13 |
Other Long-term Liabilities | 130.2 | 109.3 |
Total Liabilities | 1,120.1 | 1,075.5 |
Common stock: | ||
Capital in excess of par value | 318.4 | 323.8 |
Treasury stock | (24.8) | (31.5) |
Retained earnings | 403.4 | 389.1 |
Accumulated other comprehensive loss | (139.9) | (116.1) |
Total Stockholders' Equity | 557.3 | 565.5 |
Noncontrolling Interest | 32.6 | 6.9 |
Total Equity | 589.9 | 572.4 |
Total Liabilities and Equity | 1,710 | 1,647.9 |
Common Class A [Member] | ||
Common stock: | ||
Common stock | 0.1 | 0.1 |
Common Class B [Member] | ||
Common stock: | ||
Common stock | $ 0.1 | $ 0.1 |
Balance Sheet Parenthetical
Balance Sheet Parenthetical - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 |
Common Class A [Member] | ||
Class A Common stock, par value | $ 0.01 | $ 0.01 |
Class A Common stock, shares outstanding | 12,661,611 | 12,562,817 |
Common Class B [Member] | ||
Class A Common stock, par value | $ 0.01 | $ 0.01 |
Class A Common stock, shares outstanding | 3,889,579 | 3,899,503 |
Unaudited Condensed Consolidat4
Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues | $ 765.6 | $ 685.5 | $ 1,553.8 | $ 1,398.6 |
Cost of sales | 639.4 | 563.8 | 1,295.5 | 1,150.8 |
Gross Profit | 126.2 | 121.7 | 258.3 | 247.8 |
Operating Expenses | ||||
Selling, general and administrative expenses | 115.4 | 104.2 | 228.3 | 207.7 |
Operating Profit | 10.8 | 17.5 | 30 | 40.1 |
Other (income) expense | ||||
Interest expense | 4 | 2.6 | 8 | 4.4 |
Income from unconsolidated affiliates | (2.4) | (1.9) | (5.2) | (4) |
Other | (0.3) | (1.5) | (2.1) | (2.9) |
Other (income) expense | 1.3 | (0.8) | 0.7 | (2.5) |
Income Before Income Taxes | 9.5 | 18.3 | 29.3 | 42.6 |
Income tax provision | 3.8 | 1.9 | 8.7 | 8.1 |
Net income | 5.7 | 16.4 | 20.6 | 34.5 |
Net (income) loss attributable to noncontrolling interest | (0.1) | 0 | (0.1) | 0 |
Net Income Attributable to Stockholders | $ 5.6 | $ 16.4 | $ 20.5 | $ 34.5 |
Basic Earnings per Share | $ 0.34 | $ 1 | $ 1.24 | $ 2.10 |
Diluted Earnings per Share | 0.34 | 0.99 | 1.24 | 2.09 |
Dividends per Share | $ 0.3100 | $ 0.3025 | $ 0.6125 | $ 0.5975 |
Basic Weighted Average Shares Outstanding | 16,550 | 16,453 | 16,525 | 16,435 |
Diluted Weighted Average Shares Outstanding | 16,587 | 16,503 | 16,578 | 16,490 |
Unaudited Condensed Consolidat5
Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) Statement - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 5.7 | $ 16.4 | $ 20.6 | $ 34.5 |
Other comprehensive income (loss) | ||||
Foreign currency translation adjustment | (28.2) | 13 | (18.4) | 20.5 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Reclassification Adjustments, Net of Tax | 0 | 1.4 | 0 | 1.4 |
Current period cash flow hedging activity | (16.5) | 2.5 | (3.5) | 7 |
Reclassification of hedging activities into earnings | (2) | 0.6 | (1.2) | 0.7 |
Current period pension adjustment | 0.7 | 0 | 0.7 | 0 |
Reclassification of pension into earnings | 0.7 | 0.7 | 1.4 | 1.4 |
Comprehensive Income (Loss) | (39.6) | 34.6 | (0.4) | 65.5 |
Net (income) loss attributable to noncontrolling interests | 0.1 | 0 | 0.1 | 0 |
Foreign currency translation adjustment attributable to noncontrolling interests | 1.3 | (0.1) | 1.1 | (0.4) |
Comprehensive Income (Loss) Attributable to Stockholders | $ (38.4) | $ 34.5 | $ 0.6 | $ 65.1 |
Unaudited Condensed Consolidat6
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Operating Activities | ||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 20.6 | $ 34.5 |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ||
Depreciation and amortization | 20.8 | 21.3 |
Amortization of deferred financing fees | 0.9 | 0.6 |
Deferred income taxes | 2.5 | (1.1) |
Stock-based compensation | 1.9 | 3.7 |
Dividends from unconsolidated affiliates | 22.2 | 2.8 |
Other non-current liabilities | (2.6) | (4.5) |
Other | 3.7 | 1.3 |
Working capital changes: | ||
Accounts receivable | 38.2 | 1.7 |
Inventories | (48.2) | (19.1) |
Other current assets | (6.3) | 0.9 |
Accounts payable | 18.7 | 103.9 |
Other current liabilities | (20.4) | (5.7) |
Net cash provided by (used for) operating activities | 52 | 140.3 |
Investing Activities | ||
Expenditures for property, plant and equipment | (16) | (16.9) |
Proceeds from the sale of assets | 0.8 | 0.8 |
Payments to Acquire Available-for-sale Securities, Equity | 0 | (5.6) |
Payments to Acquire Businesses, Net of Cash Acquired | (74.3) | (1) |
Net Cash Provided by (Used in) Investing Activities | (89.5) | (22.7) |
Financing Activities | ||
Additions to long-term debt | 16.8 | 236.3 |
Reductions of long-term debt | (34.6) | (31.7) |
Net change to revolving credit agreements | 3.3 | (113.4) |
Cash dividends paid | (10.1) | (9.9) |
Payments of Ordinary Dividends, Noncontrolling Interest | 0.3 | 0.2 |
Financing fees paid | 0.6 | 5 |
Payments for Repurchase of Common Stock | 0.6 | 0 |
Other | 0 | (0.1) |
Net cash provided by (used for) financing activities | (26.1) | 76 |
Effect of exchange rate changes on cash | (4.1) | 3.1 |
Cash and Cash Equivalents | ||
Increase (decrease) for the period | (67.7) | 196.7 |
Balance at the beginning of the period | 220.1 | 43.2 |
Balance at the end of the period | $ 152.4 | $ 239.9 |
Unaudited Condensed Consolidat7
Unaudited Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Millions | Total | Parent [Member] | Common Stock [Member]Common Class A [Member] | Common Stock [Member]Common Class B [Member] | Treasury Stock [Member] | Capital in Excess of Par Value [Member] | Retained Earnings [Member] | Foreign Currency Translation Adjustment [Member] | Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | Deferred Gain (Loss) on Cash Flow Hedging [Member] | Pension Adjustment [Member] | Noncontrolling Interest [Member] |
Balance at Dec. 31, 2016 | $ 470.4 | $ 463.8 | $ 0.1 | $ 0.1 | $ (36.9) | $ 319.6 | $ 360.3 | $ (92) | $ 0 | $ (12.2) | $ (75.2) | $ 6.6 |
Capital in Excess of Par Value | ||||||||||||
Stock-based compensation | 3.7 | 3.7 | 3.7 | |||||||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 0 | 0 | 4.7 | (4.7) | ||||||||
Retained Earnings | ||||||||||||
Net Income Attributable to Stockholders | 34.5 | 34.5 | 34.5 | |||||||||
Cash dividends | (10.1) | (9.9) | (9.9) | |||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||
Foreign currency translation adjustment | 20.5 | 20.5 | ||||||||||
Unrealized gain on available for sale securities | 1.4 | 1.4 | ||||||||||
Deferred gain (loss) on cash flow hedging | 7 | 7 | ||||||||||
Current period pension adjustment | 0 | 0 | ||||||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 28.9 | 28.9 | ||||||||||
Reclassification of hedging activities into earnings | 0.7 | 0.7 | ||||||||||
Reclassification of pension into earnings | 1.4 | 1.4 | ||||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 2.1 | 2.1 | ||||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 34.5 | |||||||||||
Noncontrolling Interest Items [Abstract] | ||||||||||||
Net (income) loss attributable to noncontrolling interest | 0 | 0 | ||||||||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | 0.2 | |||||||||||
Noncontrolling Interest, Increase from Business Combination | 0.3 | 0.3 | ||||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Noncontrolling Interest | 0.4 | 0.4 | ||||||||||
Balance at Jun. 30, 2017 | 530.2 | 523.1 | 0.1 | 0.1 | (32.2) | 318.6 | 384.9 | (71.5) | 1.4 | (4.5) | (73.8) | 7.1 |
Balance at Dec. 31, 2017 | 572.4 | 565.5 | 0.1 | 0.1 | (31.5) | 323.8 | 389.1 | (58.5) | 2.8 | (1.5) | (58.9) | 6.9 |
Capital in Excess of Par Value | ||||||||||||
Stock-based compensation | 1.9 | 1.9 | 1.9 | |||||||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 0 | 0 | 7.3 | (7.3) | ||||||||
Treasury Stock, Value, Acquired, Cost Method | 0.6 | 0.6 | 0.6 | |||||||||
Retained Earnings | ||||||||||||
Net Income Attributable to Stockholders | 20.5 | 20.5 | 20.5 | |||||||||
Cash dividends | (10.4) | (10.1) | (10.1) | |||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||
Foreign currency translation adjustment | (18.4) | (18.4) | ||||||||||
Unrealized gain on available for sale securities | 0 | |||||||||||
Deferred gain (loss) on cash flow hedging | (3.5) | (3.5) | ||||||||||
Current period pension adjustment | 0.7 | 0.7 | ||||||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (21.2) | (21.2) | ||||||||||
Reclassification of hedging activities into earnings | (1.2) | (1.2) | ||||||||||
Reclassification of pension into earnings | 1.4 | 1.4 | ||||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0.2 | 0.2 | ||||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 20.6 | |||||||||||
Noncontrolling Interest Items [Abstract] | ||||||||||||
Net (income) loss attributable to noncontrolling interest | 0.1 | 0.1 | ||||||||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | 0.3 | |||||||||||
Noncontrolling Interest, Increase from Business Combination | 27 | 27 | ||||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Noncontrolling Interest | (1.1) | (1.1) | ||||||||||
Balance at Jun. 30, 2018 | $ 589.9 | $ 557.3 | $ 0.1 | $ 0.1 | $ (24.8) | $ 318.4 | $ 403.4 | $ (76.9) | $ 0 | $ (6.2) | $ (56.8) | $ 32.6 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Hyster-Yale Materials Handling, Inc., a Delaware corporation, and the accounts of Hyster-Yale's wholly owned domestic and international subsidiaries and majority-owned joint ventures (collectively, "Hyster-Yale" or the "Company"). All intercompany accounts and transactions among the consolidated companies are eliminated in consolidation. The Company, through its wholly owned operating subsidiary, Hyster-Yale Group, Inc. ("HYG"), designs, engineers, manufactures, sells and services a comprehensive line of lift trucks and aftermarket parts marketed globally primarily under the Hyster ® and Yale ® brand names, mainly to independent Hyster ® and Yale ® retail dealerships. Lift trucks and component parts are manufactured in the United States, Northern Ireland, Mexico, the Netherlands, Italy, Vietnam, the Philippines, Japan, Brazil and China. The Company also operates Bolzoni S.p.A. ("Bolzoni"). Bolzoni is a leading worldwide producer of attachments, forks and lift tables marketed under the Bolzoni Auramo ® and Meyer ® brand names. Bolzoni products are manufactured in Italy, China, Germany, Finland and the United States. Through the design, production and distribution of a wide range of attachments, Bolzoni has a strong presence in the market niche of lift-truck attachments and industrial material handling. The Company also operates Nuvera Fuel Cells, LLC ("Nuvera"). Nuvera is an alternative-power technology company focused on fuel-cell stacks and engines. On June 1, 2018, the Company completed the acquisition of a 75% majority interest in Zhejiang Maximal Forklift Co., Ltd. ("Maximal"). Maximal is a Chinese manufacturer of utility and standard lift trucks and specialized material handling equipment involved in the design, manufacture, service and distribution of Class 1 electric and Class 5 internal combustion engine counterbalance utility and standard platforms, and Class 2 and Class 3 electric warehouse products for both the local China and global markets under the Maximal and SAMUK brands. Maximal also designs and produces specialized products in the port equipment and rough terrain forklift markets. The results of Maximal are included in the JAPIC segment since the date of acquisition. See Note 15 to the unaudited condensed consolidated financial statements for additional information. Investments in Sumitomo NACCO Forklift Co., Ltd. (“SN”), a 50% -owned joint venture, and HYG Financial Services, Inc. ("HYGFS"), a 20% -owned joint venture, are accounted for by the equity method. SN operates manufacturing facilities in Japan, the Philippines and Vietnam from which the Company purchases certain components, service parts and lift trucks. Sumitomo Heavy Industries, Ltd. ("Sumitomo") owns the remaining 50% interest in SN. Each stockholder of SN is entitled to appoint directors representing 50% of the vote of SN’s board of directors. All matters related to policies and programs of operation, manufacturing and sales activities require mutual agreement between the Company and Sumitomo prior to a vote of SN’s board of directors. HYGFS is a joint venture with Wells Fargo Financial Leasing, Inc. (“WF”), formed primarily for the purpose of providing financial services to independent Hyster ® and Yale ® lift truck dealers and National Account customers in the United States. National Account customers are large customers with centralized purchasing and geographically dispersed operations in multiple dealer territories. The Company’s percentage share of the net income or loss from these equity investments is reported on the line “Income from unconsolidated affiliates” in the “Other (income) expense” portion of the unaudited condensed consolidated statements of operations. These financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position of the Company as of June 30, 2018 and the results of its operations for the three and six months ended June 30, 2018 and 2017 and the results of its cash flows and changes in equity for the six months ended June 30, 2018 and 2017 have been included. These unaudited condensed consolidated financial statements should be read in conjunction with the 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 . The accompanying unaudited condensed consolidated balance sheet at December 31, 2017 has been derived from the audited financial statements at that date but does not include all of the information or notes required by U.S. generally accepted accounting principles for complete financial statements. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 6 Months Ended |
Jun. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Recently Issued Accounting Standards The following table provides a brief description of recent accounting pronouncements adopted January 1, 2018. Unless otherwise noted, the adoption of these standards did not have a material effect on the Company's financial position, results of operations, cash flows or related disclosures. Standard Description Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) (Subsequent ASUs have been issued in 2015, 2016 and 2017 to update or clarify this guidance) The new guidance is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. See Note 3 for additional information. ASU No. 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities The guidance requires equity investments previously accounted for under the cost method of accounting to be measured at fair value and recognized in net income. In addition, the guidance defines measurement and presentation of financial instruments. The Company recorded a cumulative adjustment to retained earnings for deferred gains related to equity investments in third parties as of January 1, 2018 of $3.6 million. Subsequent changes in the fair value of these investments are recognized directly in earnings. ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments The guidance clarifies the classification of certain types of cash receipts and cash payments. In addition, the guidance provides for the application of the predominance principle when certain cash receipts and payments have aspects of more than one class of cash flows. ASU No. 2016-16, Income Taxes (Topic 740) The guidance allows for recognition of current and deferred income taxes for an intra-entity transfer of an asset other than inventory. The guidance allows for more accurate representation of the economics of an intra-entity asset transfer which will require income tax consequences of the transfer, including income taxes payable or paid. ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash The guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business The guidance clarifies the definition of a business to assist entities in evaluating whether transactions should be accounted for as acquisitions or disposals of businesses. ASU 2017-05, Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition The guidance clarifies the scope and accounting of a financial asset that meets the definition of an "in-substance nonfinancial asset" and defines the term, "in-substance nonfinancial asset," in addition to partial sales of nonfinancial assets. ASU 2017-07, Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement The guidance requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. As of January 1, 2018, the Company presents the components of net benefit cost, other than service cost, in other (income) expense for its pension plans. Service cost for the Company's pension plans continues to be reported in operating profit. Accordingly, the Company has reclassified $0.8 million and $1.6 million of income related to the components of net benefit cost, other than service cost, to other (income) expense for the three and six months ended June 30, 2017, respectively, in the unaudited condensed consolidated statements of operations. ASU No. 2018-05, Income Taxes (Topic 740) The guidance codifies Staff Accounting Bulletin No. 118 regarding the application of US GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Cuts and Jobs Act (the "Tax Reform Act"). See Note 5 for additional details regarding the status of the Company's provisional amounts recorded at December 31, 2017 as a result of the Tax Reform Act. The following table provides a brief description of recent accounting pronouncements not yet adopted: Standard Description Required Date of Adoption Effect on the financial statements or other significant matters ASU No. 2016-02, Leases (Topic 842)(Subsequent ASUs have been issued in 2017 and 2018 to update or clarify this guidance) The guidance requires lessees (with the exception of short-term leases) to recognize, at the commencement date, a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. January 1, 2019 The Company's evaluation process of the new standard includes, but is not limited to, evaluating its current lease portfolio, identifying relevant contracts and attributes affected by the standard and determining the required accounting upon adoption. In addition, the Company expects to implement new processes and controls regarding asset financing transactions and financial reporting. The Company continues to evaluate its global leasing portfolio and train relevant personnel. In addition, the Company has started abstraction of key attributes within lease contracts and expects to begin systems-related implementations required for the new standard in the third quarter of 2018. This evaluation and implementation will continue throughout 2018. While the Company's evaluation of the alternative methods of adoption, practical expedients and the effect on its financial position, results of operations, cash flows and related disclosures is ongoing; the Company anticipates the adoption will materially affect the consolidated balance sheets and will require changes to the Company's systems and processes. ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities The guidance makes targeted changes to the hedge accounting model intended to facilitate financial reporting that more closely reflects an entity’s risk management activities and to simplify the application of hedge accounting. Changes include expanding the types of risk management strategies eligible for hedge accounting, easing the documentation and effectiveness assessment requirements, changing how ineffectiveness is measured and changing the presentation and disclosure requirements for hedge accounting activities. January 1, 2019 The Company is currently evaluating the guidance and the effect on its financial position, results of operations, cash flows and related disclosures. ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income The guidance provides an election to reclassify the stranded tax effects resulting from the Tax Reform Act from OCI to retained earnings. In addition, the guidance requires new disclosures regarding the election to adopt and the manner in which tax effects remaining in OCI are released. January 1, 2019 The Company is currently evaluating the guidance and the effect on its financial position, results of operations, cash flows and related disclosures. ASU 2018-07, Compensation-Stock Compensation (Topic 718) The guidance addresses the accounting for non-employee share-based payment transactions. January 1, 2019 The Company is currently evaluating the guidance and the effect on its financial position, results of operations, cash flows and related disclosures. ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326) The guidance eliminates the probable initial recognition threshold and requires an entity to reflect its current estimate of all expected credit losses. The guidance also requires additional disclosures in certain circumstances. January 1, 2020 The Company is currently evaluating the alternative methods of adoption and the effect on its financial position, results of operations, cash flows and related disclosures. ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment The guidance removes the second step of the two-step test for the measurement of goodwill impairment. The guidance allows for early adoption for impairment testing dates after January 1, 2017. January 1, 2020 The Company is currently evaluating the timing of adoption and the effect on its current impairment testing process. |
Revenue Recognition Revenue Rec
Revenue Recognition Revenue Recognition | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Text Block] | Revenue Adoption of the new revenue standard: On January 1, 2018, the Company adopted Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers” (“new revenue standard”). The new revenue standard was applied to all open revenue contracts using the modified-retrospective method as of January 1, 2018. The Company recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The Company does not expect the impact of the adoption of the new standard to be material to net income on an ongoing basis. As of January 1, 2018, the cumulative effect on the Company’s unaudited condensed consolidated balance sheet for the adoption of the new revenue standard was as follows: Balance at December 31, 2017 Adjustments due to New Revenue Standard Balance at January 1, 2018 Accounts receivable, net $ 453.0 $ 0.5 $ 453.5 Inventories, net 411.9 (0.3 ) 411.6 Prepaid expenses and other 46.4 1.1 47.5 Other current liabilities 162.3 1.0 163.3 Retained earnings 389.1 0.3 389.4 In accordance with the adoption of the new revenue standard, the effect of adoption on the June 30, 2018 unaudited condensed consolidated income statement and balance sheet was as follows: THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, 2018 JUNE 30, 2018 As Reported Amount before the new revenue standard Change Higher/(Lower) As Reported Amount before the new revenue standard Change Higher/(Lower) Revenues $ 765.6 $ 765.5 $ 0.1 $ 1,553.8 $ 1,553.4 $ 0.4 Cost of sales 639.4 639.3 0.1 1,295.5 1,295.1 0.4 Gross profit 126.2 126.2 — 258.3 258.3 — Operating profit 10.8 10.8 — 30.0 30.0 — Income before income taxes 9.5 9.5 — 29.3 29.3 — Income tax provision 3.8 3.8 — 8.7 8.7 — Net income attributable to stockholders 5.6 5.6 — 20.5 20.5 — JUNE 30, 2018 As Reported Amount before the new revenue standard Change Higher/(Lower) Accounts receivable, net $ 424.7 $ 424.4 $ 0.3 Inventories, net 467.1 467.4 (0.3 ) Prepaid expenses and other 56.4 56.6 (0.2 ) Other current liabilities 169.0 169.5 (0.5 ) Retained earnings 403.4 403.5 (0.1 ) The Company has elected to apply the practical expedient to reflect the aggregate effect of all modifications when identifying the satisfied and unsatisfied performance obligations, determining the transaction price and allocating the transaction price. The Company does not disclose the value of unsatisfied performance obligations for revenue contracts with an original expected length of one year or less. Accounting policy: Revenue is recognized when obligations under the terms of a contract with the customer are satisfied which occurs when control of the trucks, parts, or services are transferred to the customer. Revenue is measured as the amount of consideration expected to be received in exchange for transferring goods or providing services. The satisfaction of performance obligations under the terms of a revenue contract generally gives rise for the right to payment from the customer. The Company's standard payment terms vary by the type and location of the customer and the products or services offered. Generally, the time between when revenue is recognized and when payment is due is not significant. Given the insignificant days between revenue recognition and receipt of payment, financing components do not exist between the Company and its customers. Taxes collected from customers are excluded from revenue. The estimated costs of product warranties are recognized as expense when the products are sold. See Note 11 for further information on product warranties. The majority of the Company's sales contracts contain performance obligations satisfied at a point in time when title and risks and rewards of ownership have transferred to the customer. Revenue for service contracts are recognized as the services are provided. The Company also records variable consideration in the form of estimated reductions to revenues for customer programs and incentive offerings, including special pricing agreements, promotions and other volume-based incentives. Lift truck sales revenue is recorded net of estimated discounts. The estimated discount amount is based upon historical experience and trend analysis for each lift truck model. In addition to standard discounts, dealers can also request additional discounts that allow them to offer price concessions to customers. From time to time, the Company offers special incentives to increase market share or dealer stock and offers certain customers volume rebates if a specified cumulative level of purchases is obtained. For contracts with customers that include multiple performance obligations, judgment is required to determine whether performance obligations specified in these contracts are distinct and should be accounted for as separate revenue transactions for recognition purposes. For such arrangements, revenue is allocated to each performance obligation based on its relative standalone selling price. Standalone selling prices are generally determined based on the prices charged to customers or using expected cost plus margin. Impairment losses recognized on receivables or contract assets were not significant for the three and six months ended June 30, 2018 . The Company generally expenses sales commissions when incurred because the amortization period would have been one year or less. These costs are reported on the line “Selling, general and administrative expenses” in the unaudited condensed consolidated statement of operations. The Company pays for shipping and handling activities regardless of when control is transferred and has elected to account for shipping and handling as activities to fulfill the promise to transfer the good, rather than a promised service. These costs are reported on the line “Cost of sales” in the unaudited condensed consolidated statements of operations. The following table disaggregates revenue by category: THREE MONTHS ENDED JUNE 30, 2018 Lift truck business Americas EMEA JAPIC Bolzoni Nuvera Elims Total Dealer sales $ 280.6 $ 159.5 $ 47.9 $ — $ — $ — $ 488.0 Direct customer sales 74.4 1.2 — — — — 75.6 Aftermarket sales 91.7 26.7 9.2 — — — 127.6 Other 24.9 3.6 0.4 52.5 0.4 (7.4 ) 74.4 Total Revenues $ 471.6 $ 191.0 $ 57.5 $ 52.5 $ 0.4 $ (7.4 ) $ 765.6 SIX MONTHS ENDED JUNE 30, 2018 Lift truck business Americas EMEA JAPIC Bolzoni Nuvera Elims Total Dealer sales $ 582.5 $ 324.8 $ 87.9 $ — $ — $ — $ 995.2 Direct customer sales 156.1 2.9 — — — — 159.0 Aftermarket sales 179.3 53.7 18.4 — — — 251.4 Other 49.6 7.5 0.7 103.7 0.7 (14.0 ) 148.2 Total Revenues $ 967.5 $ 388.9 $ 107.0 $ 103.7 $ 0.7 $ (14.0 ) $ 1,553.8 Dealer sales are recognized when the Company transfers control based on the shipping terms of the contract, which is generally when the truck is shipped from the manufacturing facility to the dealers. The majority of direct customer sales are to National Account customers. In these transactions, the Company transfers control and recognizes revenue when it delivers the product to the customer according to the terms of the contract. Aftermarket sales represent part sales, extended warranty and maintenance services. For the sale of aftermarket parts, the Company transfers control and recognizes revenue when parts are shipped to the customer. When customers are given the right to return eligible parts and accessories, the Company estimates the expected returns based on an analysis of historical experience. The Company adjusts estimated revenues at the earlier of when the most likely amount of consideration expected to be received changes or when the consideration becomes fixed. The Company recognizes revenue for extended warranty and maintenance agreements based on the standalone selling price over the life of the contract, which reflects the costs to perform under these contracts and corresponds with, and thereby depicts, the transfer of control to the customer. Bolzoni revenue is primarily the sale of attachments to customers. In these transactions, the Company transfers control and recognizes revenue according to the shipping terms of the contract. In all revenue transactions, the Company receives cash equal to the invoice price and amount of consideration received and revenue recognized may vary with changes in marketing incentives. Deferred Revenue: The Company defers revenue for transactions that have not met the criteria for recognition at the time payment is collected, including extended warranties and maintenance contracts. In addition, for certain products, services and customer types, the Company collects payment prior to the transfer of control to the customer. Deferred Revenue Balance, December 31, 2017 $ 51.6 Customer deposits and billings 20.6 Revenue recognized (23.2 ) Balance, June 30, 2018 $ 49.0 |
Business Segments
Business Segments | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Business Segments The Company’s reportable segments for the lift truck business include the following three management units: the Americas, EMEA and JAPIC. Americas includes operations in the United States, Canada, Mexico, Brazil, Latin America and its corporate headquarters. EMEA includes operations in Europe, the Middle East and Africa. JAPIC includes operations in the Asia and Pacific regions, including China, as well as the equity earnings of SN operations. Certain amounts are allocated to these geographic management units and are included in the segment results presented below, including product development costs, corporate headquarter's expenses and certain information technology infrastructure costs. These allocations among geographic management units are determined by senior management and not directly incurred by the geographic operations. In addition, other costs are incurred directly by these geographic management units based upon the location of the manufacturing plant or sales units, including manufacturing variances, product liability, warranty and sales discounts, which may not be associated with the geographic management unit of the ultimate end user sales location where revenues and margins are reported. Therefore, the reported results of each segment for the lift truck business cannot be considered stand-alone entities as all segments are inter-related and integrate into a single global lift truck business. On June 1, 2018, the Company completed the acquisition of the majority interest in Maximal, which is included in the JAPIC segment from the date of acquisition. Given the timing and complexity of the acquisition, the presentation of Maximal in the consolidated financial statements, including the allocation of the purchase price, is preliminary and will likely change in future periods, perhaps significantly as fair value estimates of the assets acquired and liabilities assumed are refined during the measurement period. The Company will complete the purchase price allocation no later than the second quarter of 2019. See Note 15 to the unaudited condensed consolidated financial statements for additional information. The Company reports the results of both Bolzoni and Nuvera as separate segments. Intercompany sales between Nuvera, Bolzoni and the lift truck business have been eliminated. Financial information for each reportable segment is presented in the following table: THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30 JUNE 30 2018 2017 2018 2017 Revenues from external customers Americas $ 471.6 $ 432.9 $ 967.5 $ 898.9 EMEA 191.0 172.6 388.9 335.0 JAPIC 57.5 42.2 107.0 86.0 Lift truck business 720.1 647.7 1,463.4 1,319.9 Bolzoni 52.5 41.9 103.7 83.5 Nuvera 0.4 0.4 0.7 3.0 Eliminations (7.4 ) (4.5 ) (14.0 ) (7.8 ) Total $ 765.6 $ 685.5 $ 1,553.8 $ 1,398.6 Gross profit (loss) Americas $ 79.1 $ 82.7 $ 164.9 $ 167.6 EMEA 25.1 23.6 50.9 46.1 JAPIC 6.1 4.2 10.6 9.7 Lift truck business 110.3 110.5 226.4 223.4 Bolzoni 16.8 12.4 33.8 26.2 Nuvera (0.7 ) (0.9 ) (1.6 ) (1.5 ) Eliminations (0.2 ) (0.3 ) (0.3 ) (0.3 ) Total $ 126.2 $ 121.7 $ 258.3 $ 247.8 Operating profit (loss) Americas $ 18.0 $ 27.7 $ 45.9 $ 57.3 EMEA 1.4 2.3 2.3 3.2 JAPIC (2.1 ) (2.2 ) (4.3 ) (2.9 ) Lift truck business 17.3 27.8 43.9 57.6 Bolzoni 3.2 0.5 5.9 2.8 Nuvera (9.5 ) (10.5 ) (19.5 ) (20.0 ) Eliminations (0.2 ) (0.3 ) (0.3 ) (0.3 ) Total $ 10.8 $ 17.5 $ 30.0 $ 40.1 Net income (loss) attributable to stockholders Americas $ 10.2 $ 23.8 $ 30.6 $ 44.3 EMEA 1.3 2.2 2.3 3.3 JAPIC (0.5 ) (2.2 ) (1.2 ) (1.5 ) Lift truck business 11.0 23.8 31.7 46.1 Bolzoni 2.1 (0.1 ) 4.0 1.4 Nuvera (6.9 ) (6.3 ) (14.2 ) (12.0 ) Eliminations (0.6 ) (1.0 ) (1.0 ) (1.0 ) Total $ 5.6 $ 16.4 $ 20.5 $ 34.5 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | The income tax provision includes U.S. federal, state and local, and foreign income taxes and is based on the application of a forecasted annual income tax rate applied to the current quarter's year-to-date pre-tax income or loss. In determining the estimated annual effective income tax rate, the Company analyzes various factors, including projections of the Company's annual earnings, taxing jurisdictions in which the earnings will be generated, the impact of state and local income taxes, the Company's ability to use tax credits and net operating loss carryforwards and capital loss carryforwards, and available tax planning alternatives. Discrete items, including the effect of changes in tax laws, tax rates and certain circumstances with respect to valuation allowances or the tax effect of other unusual or nonrecurring transactions or adjustments are reflected in the period in which they occur as an addition to, or reduction from, the income tax provision, rather than included in the estimated effective annual income tax rate. A reconciliation of the consolidated federal statutory to reported income tax rate is as follows: THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30 JUNE 30 2018 2017 2018 2017 Income before income taxes $ 9.5 $ 18.3 $ 29.3 $ 42.6 Statutory taxes (21% in 2018 and 35% in 2017) $ 2.0 $ 6.4 $ 6.2 $ 14.9 Interim adjustment 0.2 0.3 0.5 0.3 Permanent adjustments: Non-U.S. rate differences (0.5 ) (2.4 ) (0.8 ) (4.8 ) Other 0.9 — 1.5 (0.5 ) $ 0.4 $ (2.4 ) $ 0.7 $ (5.3 ) Discrete items $ 1.2 $ (2.4 ) $ 1.3 $ (1.8 ) Income tax provision $ 3.8 $ 1.9 $ 8.7 $ 8.1 Reported income tax rate 40.0 % 10.4 % 29.7 % 19.0 % During the second quarter of 2018, the Company recognized a discrete tax charge of $1.1 million as a result of non-deductible acquisition costs related to the closing of the Maximal transaction. During the second quarter of 2017, the Company recognized a net discrete tax benefit of $4.4 million from an internal sale of a subsidiary between consolidated companies resulting in the repatriation of non-U.S. accumulated earnings taxed at higher rates, partially offset by a $1.6 million valuation allowance provided against deferred tax assets in China where the Company has determined that such deferred tax assets no longer meet the more likely than not standard for realization. The Company has evaluated the guidance regarding the Tax Reform Act issued to date, which has not resulted in a material change to the provisional amounts the Company accrued upon enactment for the one-time transition tax on the unremitted earnings and profits of non-U.S. subsidiaries and the impact of the tax rate change on cumulative deferred taxes. The Company will continue to monitor additional guidance issued through the date of the filing of its 2017 U.S. federal and state tax returns, at which time the amount of the one-time transition tax and the impact of the change in tax rate on cumulative deferred taxes will be finalized. The final amounts recorded may materially differ from the provisional amounts recorded due to, among other things, additional analysis, changes in interpretations of the Tax Reform Act including interpretations by state and local taxing authorities and related assumptions of the Company, and additional regulatory guidance, which could potentially affect the measurement of these provisional tax amounts. The Company has considered the provisions of the Tax Reform Act in computing its 2018 estimated effective annual income tax rate. As such, the estimated effective income tax rate for the six months ended June 30, 2018 includes favorable items related to the reduced federal tax rate of 21% on U.S. earnings and a deduction for foreign-derived intangible income, or FDII, offset by unfavorable items related to the global intangible low-taxed income, or GILTI, non-deductible expenses primarily related to compensation, as well as an increase in state income taxes, net of the federal benefit. |
Reclassifications Out Of Accumu
Reclassifications Out Of Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2018 | |
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Reclassifications Out of Accumulated Comprehensive Income (Loss) [Text Block] | Reclassifications from OCI The following table summarizes reclassifications out of accumulated other comprehensive income (loss) ("OCI") as recorded in the unaudited condensed consolidated statements of operations: Details about OCI Components Amount Reclassified from OCI Affected Line Item in the Statement Where Net Income Is Presented THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30 JUNE 30 2018 2017 2018 2017 Gain (loss) on cash flow hedges: Interest rate contracts $ (0.1 ) $ — $ (0.1 ) $ — Interest expense Foreign exchange contracts 3.1 (1.3 ) 2.1 (1.5 ) Cost of sales Total before tax 3.0 (1.3 ) 2.0 (1.5 ) Income before income taxes Tax expense (benefit) (1.0 ) 0.7 (0.8 ) 0.8 Income tax provision Net of tax $ 2.0 $ (0.6 ) $ 1.2 $ (0.7 ) Net income Amortization of defined benefit pension items: Actuarial loss $ (0.9 ) $ (1.2 ) $ (1.9 ) $ (2.2 ) (a) Prior service credit 0.1 0.1 0.2 0.2 (a) Total before tax (0.8 ) (1.1 ) (1.7 ) (2.0 ) Income before income taxes Tax expense 0.1 0.4 0.3 0.6 Income tax provision Net of tax $ (0.7 ) $ (0.7 ) $ (1.4 ) $ (1.4 ) Net income Total reclassifications for the period $ 1.3 $ (1.3 ) $ (0.2 ) $ (2.1 ) (a) These OCI components are included in the computation of net pension cost (see Note 8 for additional details). |
Financial Instruments and Deriv
Financial Instruments and Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Financial Instruments and Derivative Financial Instruments Financial Instruments The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to the short-term maturities of these instruments. The fair values of revolving credit agreements and long-term debt, excluding capital leases, were determined using current rates offered for similar obligations taking into account company credit risk. This valuation methodology is Level 2 as defined in the fair value hierarchy. At June 30, 2018 , the fair value and carrying value of revolving credit agreements and long-term debt, excluding capital leases, was $257.8 million and $257.3 million , respectively. At December 31, 2017 , the fair value and carrying value of revolving credit agreements and long-term debt, excluding capital leases, was $272.2 million and $270.9 million , respectively. Derivative Financial Instruments The Company uses forward foreign currency exchange contracts to partially reduce risks related to transactions denominated in foreign currencies. These contracts hedge firm commitments and forecasted transactions relating to cash flows associated with sales and purchases denominated in non-functional currencies. The Company offsets fair value amounts related to foreign currency exchange contracts executed with the same counterparty. Changes in the fair value of forward foreign currency exchange contracts that are effective as hedges are recorded in OCI. Deferred gains or losses are reclassified from OCI to the unaudited condensed consolidated statements of operations in the same period as the gains or losses from the underlying transactions are recorded and are generally recognized in cost of sales. The ineffective portion of derivatives that are classified as hedges is immediately recognized in earnings and is also generally recognized in cost of sales. The Company periodically enters into foreign currency exchange contracts that do not meet the criteria for hedge accounting. These derivatives are used to reduce the Company's exposure to foreign currency risk related to forecasted purchase or sales transactions or forecasted intercompany cash payments or settlements. Gains and losses on these derivatives are generally recognized in cost of sales. The Company periodically enters into forward foreign currency contracts that are designated as net investment hedges of the Company's net investment in its foreign subsidiaries. For derivative instruments that are designated and qualified as a hedge of a net investment in foreign currency, the gain or loss is reported in other comprehensive income as part of the cumulative translation adjustment to the extent it is effective. The Company utilizes the forward-rate method of assessing hedge effectiveness. Any ineffective portion of net investment hedges would be recognized in the unaudited condensed consolidated statement of operations in the same period as the change. The Company uses cross-currency swaps, which hedge the variability of expected future cash flows that are attributable to foreign currency risk of certain intercompany loans. These agreements include initial and final exchanges of principal and associated interest payments from fixed euro denominated to fixed U.S.-denominated amounts. Changes in the fair value of cross-currency swaps that are effective as hedges are recorded in OCI. Deferred gains or losses are reclassified from OCI to the unaudited condensed consolidated statements of operations in the same period as the gains or losses from the underlying transactions are recorded and are generally recognized in other (income) expense and interest expense. The ineffective portion of derivatives that are classified as hedges is immediately recognized in earnings and is also generally recognized in other (income) expense. The Company uses interest rate swap agreements to partially reduce risks related to floating rate financing agreements that are subject to changes in the market rate of interest. Terms of the interest rate swap agreements require the Company to receive a variable interest rate and pay a fixed interest rate. The Company's interest rate swap agreements and its variable rate financings are predominately based upon the one or three-month LIBOR. Changes in the fair value of interest rate swap agreements that are effective as hedges are recorded in OCI. Deferred gains or losses are reclassified from OCI to the unaudited condensed consolidated statements of operations in the same period as the gains or losses from the underlying transactions are recorded and are generally recognized in interest expense. The ineffective portion of derivatives that are classified as hedges is immediately recognized in earnings and included on the line "Other" in the "Other (income) expense" section of the unaudited condensed consolidated statements of operations. Cash flows from hedging activities are reported in the unaudited condensed consolidated statements of cash flows with the same classification as the hedged item, generally as a component of cash flows from operations. The Company measures its derivatives at fair value on a recurring basis using significant observable inputs. This valuation methodology is Level 2 as defined in the fair value hierarchy. The Company uses a present value technique that incorporates yield curves and foreign currency spot rates to value its derivatives and also incorporates the effect of the Company's and its counterparties' credit risk into the valuation. The Company does not currently hold any nonderivative instruments designated as hedges or any derivatives designated as fair value hedges. Foreign Currency Derivatives: The Company held forward foreign currency exchange contracts with total notional amounts of $ 1.1 billion at June 30, 2018 , primarily denominated in euros, U.S. dollars, Japanese yen, British pounds, Swedish kroner, Mexican pesos, Brazilian real, Chinese renminbi and Australian dollars. The Company held forward foreign currency exchange contracts with total notional amounts of $ 860.2 million at December 31, 2017 , primarily denominated in euros, U.S. dollars, Japanese yen, British pounds, Swedish kroner, Mexican pesos and Australian dollars. The fair value of these contracts approximated a net liability of $ 10.0 million and $ 2.1 million at June 30, 2018 and December 31, 2017 , respectively. Forward foreign currency exchange contracts that qualify for hedge accounting are generally used to hedge transactions expected to occur within the next 36 months. The mark-to-market effect of forward foreign currency exchange contracts that are considered effective as hedges has been included in OCI. Based on market valuations at June 30, 2018 , $ 0.2 million of the amount of net deferred loss included in OCI at June 30, 2018 is expected to be reclassified as expense into the unaudited condensed consolidated statement of operations over the next twelve months, as the transactions occur. Interest Rate Derivatives: The Company holds certain contracts that hedge interest payments on its $200.0 million term loan (the "Term Loan") borrowings and one and three-month LIBOR borrowings. The following table summarizes the notional amounts, related rates, excluding spreads, and remaining terms of interest rate swap agreements at June 30, 2018 and December 31, 2017 : Notional Amount Average Fixed Rate June 30 December 31 June 30 December 31 2018 2017 2018 2017 Term at June 30, 2018 $ 100.0 $ 100.0 1.47 % 1.47 % Extending to December 2018 $ 56.5 $ 56.5 1.94 % 1.94 % Extending to November 2022 $ 83.5 $ 83.5 2.20 % 2.20 % December 2018 to May 2023 The Company does not apply hedge accounting to the interest rate derivatives which expire December 2018. The fair value of all interest rate swap agreements was a net asset of $3.8 million and $ 0.8 million at June 30, 2018 and December 31, 2017 , respectively. The mark-to-market effect of interest rate swap agreements that are considered effective as hedges has been included in OCI. Based on market valuations at June 30, 2018 , $0.4 million of the amount included in OCI is expected to be reclassified as income in the unaudited condensed consolidated statement of operations over the next twelve months, as cash flow payments are made in accordance with the interest rate swap agreements. The following table summarizes the fair value of derivative instruments reflected on a gross basis by contract as recorded in the unaudited condensed consolidated balance sheets: Asset Derivatives Liability Derivatives Balance Sheet Location JUNE 30 DECEMBER 31 Balance Sheet Location JUNE 30 DECEMBER 31 Derivatives designated as hedging instruments Cash Flow Hedges Interest rate swap agreements Current Prepaid expenses and other $ 0.4 $ — Prepaid expenses and other $ — $ 0.1 Long-term Other non-current assets 2.9 0.7 Other non-current assets — — Other long-term liabilities — — Other long-term liabilities — 0.1 Foreign currency exchange contracts Current Prepaid expenses and other 6.2 8.3 Prepaid expenses and other 4.5 4.0 Other current liabilities 1.6 2.8 Other current liabilities 3.5 4.3 Long-term Other non-current assets 0.8 3.9 Other non-current assets 0.3 1.3 Other long-term liabilities 0.9 0.5 Other long-term liabilities 13.5 7.7 Total derivatives designated as hedging instruments $ 12.8 $ 16.2 $ 21.8 $ 17.5 Derivatives not designated as hedging instruments Cash Flow Hedges Interest rate swap agreements Current Prepaid expenses and other $ 0.5 $ 0.4 Prepaid expenses and other $ — $ — Long-term Other long-term liabilities — — Other long-term liabilities — 0.1 Foreign currency exchange contracts Current Prepaid expenses and other 2.5 0.8 Prepaid expenses and other 0.1 0.4 Other current liabilities 0.8 0.1 Other current liabilities 1.0 0.8 Long-term Other non-current assets 0.1 — Other long-term liabilities — — Total derivatives not designated as hedging instruments $ 3.9 $ 1.3 $ 1.1 $ 1.3 Total derivatives $ 16.7 $ 17.5 $ 22.9 $ 18.8 The following table summarizes the offsetting of the fair value of derivative instruments on a gross basis by counterparty as recorded in the unaudited condensed consolidated balance sheets: Derivative Assets as of June 30, 2018 Derivative Liabilities as of June 30, 2018 Gross Amounts of Recognized Assets Gross Amounts Offset Net Amounts Presented Net Amount Gross Amounts of Recognized Liabilities Gross Amounts Offset Net Amounts Presented Net Amount Cash Flow Hedges Interest rate swap agreements $ 3.8 $ — $ 3.8 $ 3.8 $ — $ — $ — $ — Foreign currency exchange contracts 4.7 (4.7 ) — — 14.7 (4.7 ) 10.0 10.0 Total derivatives $ 8.5 $ (4.7 ) $ 3.8 $ 3.8 $ 14.7 $ (4.7 ) $ 10.0 $ 10.0 Derivative Assets as of December 31, 2017 Derivative Liabilities as of December 31, 2017 Gross Amounts of Recognized Assets Gross Amounts Offset Net Amounts Presented Net Amount Gross Amounts of Recognized Liabilities Gross Amounts Offset Net Amounts Presented Net Amount Cash Flow Hedges Interest rate swap agreements $ 1.0 $ (0.2 ) $ 0.8 $ 0.8 $ 0.2 $ (0.2 ) $ — $ — Foreign currency exchange contracts 7.3 (7.3 ) — — 9.4 (7.3 ) 2.1 2.1 Total derivatives $ 8.3 $ (7.5 ) $ 0.8 $ 0.8 $ 9.6 $ (7.5 ) $ 2.1 $ 2.1 The following table summarizes the pre-tax impact of derivative instruments as recorded in the unaudited condensed consolidated statements of operations: Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) Location of Gain or (Loss) Reclassified from OCI into Income (Effective Portion) Amount of Gain or (Loss) Reclassified from OCI into Income (Effective Portion) Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) THREE MONTHS ENDED SIX MONTHS ENDED THREE MONTHS ENDED SIX MONTHS ENDED THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30 JUNE 30 JUNE 30 Derivatives designated as hedging instruments 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 Cash Flow Hedges Interest rate swap agreements $ 0.7 $ (0.4 ) $ 2.7 $ (0.4 ) Interest expense $ (0.1 ) $ — $ (0.1 ) $ — Other $ — $ — $ — $ — Foreign currency exchange contracts (24.1 ) 6.7 (8.5 ) 13.7 Cost of sales 3.1 (1.3 ) 2.1 (1.5 ) Cost of sales — — $ — $ — Total $ (23.4 ) $ 6.3 $ (5.8 ) $ 13.3 $ 3.0 $ (1.3 ) $ 2.0 $ (1.5 ) $ — $ — $ — $ — Amount of Gain or (Loss) Recognized in Income on Derivative THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30 Derivatives Not Designated as Hedging Instruments Location of Gain or (Loss) Recognized in Income on Derivative 2018 2017 2018 2017 Cash Flow Hedges Interest rate swap agreements Other $ — $ (0.2 ) $ 0.3 $ (0.1 ) Foreign currency exchange contracts Cost of sales (1.5 ) 2.4 (1.2 ) 1.7 Total $ (1.5 ) $ 2.2 $ (0.9 ) $ 1.6 |
Retirement Benefit Plans
Retirement Benefit Plans | 6 Months Ended |
Jun. 30, 2018 | |
Defined Benefit Plan [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Retirement Benefit Plans The Company maintains various defined benefit pension plans that provide benefits based on years of service and average compensation during certain periods. The Company's policy is to make contributions to fund these plans within the range allowed by applicable regulations. Plan assets consist primarily of publicly traded stocks and government and corporate bonds. Pension benefits for employees covered under the Company's U.S. and U.K. plans are frozen. Only certain grandfathered employees in the Netherlands still earn retirement benefits under a defined benefit pension plan. All other eligible employees of the Company, including employees whose pension benefits are frozen, receive retirement benefits under defined contribution retirement plans. During the second quarter of 2018 , the Company recognized a settlement loss of $0.7 million resulting from lump-sum distributions exceeding the total projected interest cost for the plan year for one of its U.S. pension plans. The Company remeasured the plan as of June 30, 2018 using a discount rate of 4.05% compared to the December 31, 2017 discount rate of 3.40% . As a result of the remeasurement, the funded status of the plan increased by $0.3 million and accumulated other comprehensive income increased by $1.0 million ( $0.7 million net of tax). The components of pension (income) expense are set forth below: THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30 JUNE 30 2018 2017 2018 2017 U.S. Pension Interest cost $ 0.7 $ 0.7 $ 1.3 $ 1.4 Expected return on plan assets (1.3 ) (1.3 ) (2.5 ) (2.5 ) Settlement loss 0.7 — 0.7 — Amortization of actuarial loss 0.4 0.5 0.9 0.9 Amortization of prior service credit (0.1 ) (0.1 ) (0.2 ) (0.2 ) Total $ 0.4 $ (0.2 ) $ 0.2 $ (0.4 ) Non-U.S. Pension Service cost $ — $ — $ 0.1 $ 0.1 Interest cost 1.1 1.0 2.1 2.0 Expected return on plan assets (2.7 ) (2.3 ) (5.4 ) (4.5 ) Amortization of actuarial loss 0.5 0.7 1.0 1.3 Total $ (1.1 ) $ (0.6 ) $ (2.2 ) $ (1.1 ) |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | Inventories Inventories are summarized as follows: JUNE 30 DECEMBER 31 Finished goods and service parts $ 223.6 $ 193.7 Work in process 23.5 19.9 Raw materials 265.6 239.0 Total manufactured inventories 512.7 452.6 LIFO reserve (45.6 ) (40.7 ) Total inventory $ 467.1 $ 411.9 Inventories are stated at the lower of cost or market for last-in, first-out (“LIFO”) inventory or lower of cost or net realizable value for first-in, first-out (“FIFO”) inventory. At June 30, 2018 and December 31, 2017 , 50% and 49% , respectively, of total inventories were determined using the LIFO method, which consists primarily of manufactured inventories, including service parts, in the United States. The FIFO method is used with respect to all other inventories. An actual valuation of inventory under the LIFO method can be made only at the end of the year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations must be based on management's estimates of expected year-end inventory levels and costs. Because these estimates are subject to change and may be different than the actual inventory levels and costs at the end of the year, interim results are subject to the final year-end LIFO inventory valuation. |
Current and Long-Term Financing
Current and Long-Term Financing | 6 Months Ended |
Jun. 30, 2018 | |
Debt Instrument [Line Items] | |
Debt Disclosure [Text Block] | Current and Long-Term Financing On March 14, 2018, the Company entered into an amendment to the Term Loan. As a result of the amendment, among other things, the floating rate margin under the Term Loan, which can be a base rate or Eurodollar rate, as defined in the Term Loan, is 2.25% for base rate loans and 3.25% for Eurodollar rate loans. The Company incurred fees and expenses of $0.6 million in the first six months of 2018 related to the amendment, which were deferred and are being amortized as interest expense over the term of the applicable debt agreements. Fees related to the Term Loan are presented as a direct deduction of the corresponding debt. |
Product Warranties
Product Warranties | 6 Months Ended |
Jun. 30, 2018 | |
Product Warranties Disclosures [Abstract] | |
Product Warranty Disclosure [Text Block] | Product Warranties The Company provides a standard warranty on its lift trucks, generally for twelve months or 1,000 to 2,000 hours . For certain series of lift trucks, the Company provides a standard warranty of one to two years or 2,000 or 4,000 hours . For certain components in some series of lift trucks, the Company provides a standard warranty of two to three years or 4,000 to 6,000 hours . The Company estimates the costs which may be incurred under its standard warranty programs and records a liability for such costs at the time product revenue is recognized. In addition, the Company sells separately-priced extended warranty agreements for its lift trucks, which generally provide a warranty for an additional two to five years or up to 2,400 to 10,000 hours . The specific terms and conditions of those warranties vary depending upon the product sold and the country in which the Company does business. Revenue received for the sale of extended warranty contracts is deferred and recognized in the same manner as the costs incurred to perform under the warranty contracts. The Company also maintains a quality enhancement program under which it provides for specifically identified field product improvements in its warranty obligation. Accruals under this program are determined based on estimates of the potential number of claims and the cost of those claims based on historical and anticipated costs. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. Factors that affect the warranty liability include the number of units sold, historical and anticipated rates of warranty claims and the cost per claim. Changes in the Company's current and long-term warranty obligations, including deferred revenue on extended warranty contracts, are as follows: 2018 Balance at December 31, 2017 $ 51.0 Current year warranty expense 18.0 Change in estimate related to pre-existing warranties 1.3 Payments made (16.4 ) Foreign currency effect (0.6 ) Balance at June 30, 2018 $ 53.3 |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Contingencies Various legal and regulatory proceedings and claims have been or may be asserted against the Company relating to the conduct of its businesses, including product liability, environmental and other claims. These proceedings and claims are incidental to the ordinary course of business. Management believes that it has meritorious defenses and will vigorously defend the Company in these actions. Any costs that management estimates will be paid as a result of these claims are accrued when the liability is considered probable and the amount can be reasonably estimated. Although the ultimate disposition of these proceedings is not presently determinable, management believes, after consultation with its legal counsel, that the likelihood is remote that costs will be incurred materially in excess of accruals already recognized. |
Guarantees
Guarantees | 6 Months Ended |
Jun. 30, 2018 | |
Guarantees [Abstract] | |
Schedule of Guarantor Obligations [Text Block] | Guarantees Under various financing arrangements for certain customers, including independent retail dealerships, the Company provides recourse or repurchase obligations such that it would be obligated in the event of default by the customer. Terms of the third-party financing arrangements for which the Company is providing recourse or repurchase obligations generally range from one to five years. Total amounts subject to recourse or repurchase obligations at June 30, 2018 and December 31, 2017 were $173.7 million and $203.5 million , respectively. As of June 30, 2018 , losses anticipated under the terms of the recourse or repurchase obligations were not significant and reserves have been provided for such losses based on historical experience in the accompanying unaudited condensed consolidated financial statements. The Company generally retains a security interest in the related assets financed such that, in the event the Company would become obligated under the terms of the recourse or repurchase obligations, the Company would take title to the assets financed. The fair value of collateral held at June 30, 2018 was approximately $232.7 million based on Company estimates. The Company estimates the fair value of the collateral using information regarding the original sales price, the current age of the equipment and general market conditions that influence the value of both new and used lift trucks. The Company also regularly monitors the external credit ratings of the entities for which it has provided recourse or repurchase obligations. As of June 30, 2018 , the Company did not believe there was a significant risk of non-payment or non-performance of the obligations by these entities; however, there can be no assurance that the risk may not increase in the future. In addition, the Company has an agreement with WF to limit its exposure to losses at certain eligible dealers. Under this agreement, losses related to $42.8 million of recourse or repurchase obligations for these certain eligible dealers are limited to 7.5% of their original loan balance, or $13.1 million as of June 30, 2018 . The $42.8 million is included in the $173.7 million of total amounts subject to recourse or repurchase obligations at June 30, 2018 . Generally, the Company sells lift trucks through its independent dealer network or directly to customers. These dealers and customers may enter into a financing transaction with HYGFS or other unrelated third parties. HYGFS provides debt and lease financing to both dealers and customers. On occasion, the credit quality of a customer or credit concentration issues within WF may require the Company to provide recourse or repurchase obligations of the lift trucks purchased by customers and financed through HYGFS. At June 30, 2018 , approximately $142.2 million of the Company's total recourse or repurchase obligations of $173.7 million related to transactions with HYGFS. In connection with the joint venture agreement, the Company also provides a guarantee to WF for 20% of HYGFS’ debt with WF, such that the Company would become liable under the terms of HYGFS’ debt agreements with WF in the case of default by HYGFS. At June 30, 2018 , loans from WF to HYGFS totaled $1.2 billion . Although the Company’s contractual guarantee was $230.8 million , the loans by WF to HYGFS are secured by HYGFS’ customer receivables, of which the Company guarantees $142.2 million . Excluding the HYGFS receivables guaranteed by the Company from HYGFS’ loans to WF, the Company’s incremental obligation as a result of this guarantee to WF is $208.3 million , which is secured by 20% of HYGFS' customer receivables and other secured assets of $277.9 million . HYGFS has not defaulted under the terms of this debt financing in the past, and although there can be no assurances, the Company is not aware of any circumstances that would cause HYGFS to default in future periods. The following table includes the exposure amounts related to the Company's guarantees at June 30, 2018 : HYGFS Total Total recourse or repurchase obligations $ 142.2 $ 173.7 Less: exposure limited for certain dealers 42.8 42.8 Plus: 7.5% of original loan balance 13.1 13.1 112.5 144.0 Incremental obligation related to guarantee to WF 208.3 208.3 Total exposure related to guarantees $ 320.8 $ 352.3 |
Equity Investments
Equity Investments | 6 Months Ended |
Jun. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments Disclosure [Text Block] | Equity Investments The Company maintains an interest in one variable interest entity, HYGFS. HYGFS is a joint venture with WF formed primarily for the purpose of providing financial services to independent Hyster ® and Yale ® lift truck dealers and National Account customers in the United States and is included in the Americas segment. The Company does not have a controlling financial interest or have the power to direct the activities that most significantly affect the economic performance of HYGFS. Therefore, the Company is not the primary beneficiary and uses the equity method to account for its 20% interest in HYGFS. The Company does not consider its variable interest in HYGFS to be significant. The Company has a 50% ownership interest in SN, a limited liability company which was formed primarily to manufacture and distribute Sumitomo-branded lift trucks in Japan and export Hyster ® - and Yale ® -branded lift trucks and related components and service parts outside of Japan. The Company purchases products from SN under agreed-upon terms. The Company's ownership in SN is also accounted for using the equity method of accounting and is included in the JAPIC segment. The Company's percentage share of the net income or loss from its equity investments in HYGFS and SN is reported on the line “Income from unconsolidated affiliates” in the “Other (income) expense” section of the unaudited condensed consolidated statements of operations. The Company's equity investments are included on the line “Investment in Unconsolidated Affiliates” in the unaudited condensed consolidated balance sheets. At June 30, 2018 and December 31, 2017 , the Company's investment in HYGFS was $17.8 million and $35.2 million , respectively. The Company's investment in SN was $38.9 million and $36.8 million at June 30, 2018 and December 31, 2017 , respectively. Bolzoni's investment in unconsolidated affiliates was $0.4 million and $0.5 million at June 30, 2018 and December 31, 2017 , respectively. The Company received dividends of $20.1 million and $2.4 million from HYGFS in the first six months of 2018 and 2017, respectively. The Company received dividends of $2.1 million and $0.4 million from SN in the first six months of 2018 and 2017, respectively. The Company has an equity investment in a third party valued using a quoted market price in an active market, or Level 1 in the fair value hierarchy. The Company's investment as of June 30, 2018 was $6.2 million , which includes a $2.6 million and $3.0 million loss for the three and six months ended June 30, 2018 , respectively and is included on the line "Other" in the "Other (income) expense" section of the unaudited condensed consolidated statements of operations. Summarized financial information for HYGFS and SN is as follows: THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30 JUNE 30 2018 2017 2018 2017 Revenues $ 105.0 $ 92.9 $ 205.5 $ 178.0 Gross profit $ 31.4 $ 28.1 $ 63.3 $ 55.1 Income from continuing operations $ 8.5 $ 6.7 $ 18.7 $ 13.2 Net income $ 8.5 $ 6.7 $ 18.7 $ 13.2 |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | Acquisitions On December 6, 2017, the Company's indirect wholly owned subsidiary, Hyster-Yale Acquisition Holding Ltd. ("Acquisition Co."), entered into an Equity Transfer Agreement (“ETA”) with KNSN Pipe & Pile Company Limited (“KNSN”), pursuant to which Acquisition Co. agreed to purchase 75% of the equity interest of Zhejiang Maximal Forklift Co., Ltd. (“Maximal”) from KNSN for an aggregate purchase price of $90.0 million . After the closing under the ETA, the remaining 25% of the equity interest of Maximal is owned by senior management of Maximal, through Y-C Hong Kong Holding Company Limited (“HK Holding Co.”). Maximal is a manufacturer of utility and standard lift trucks and specialized materials handling equipment founded in 2006 in the Hangzhou, Zhejiang Province of China . Under the terms of the ETA, upon the closing, the Company paid $81.0 million to a jointly-controlled bank account under the name of KNSN, and KNSN is only allowed to use such amount to repay intercompany indebtedness owed by KNSN to Maximal and to remove existing related-party guarantees provided by Maximal. Any balance amount remaining after fulfilling the specified purposes will belong to KNSN. In addition, upon the closing, the Company paid $9.0 million to an escrow account, which will be released to KNSN in two installments. The first installment of $2.7 million will be released on the second anniversary of the closing and the second installment of $6.3 million will be released on the third anniversary of the closing subject to a number of conditions. KNSN is obligated to indemnify the Company from and against any breach of representations and warranties and any liabilities and losses associated with the pre-closing operations of Maximal. In addition, the Company signed an incentive agreement with Mr. Jin Hong Lu, a key member of senior management of Maximal and the majority shareholder of KNSN. Pursuant to this agreement, the Company will pay $10.0 million to Mr. Lu by the third anniversary of the closing under the ETA, provided that Mr. Lu, his immediate family members and any affiliates fully comply with the non-competition, conflict of interest, non-solicitation, and compliance covenants set forth in the agreement. On June 1, 2018, the Company completed the acquisition of a 75% equity interest of Maximal for $74.3 million , net of cash acquired of $15.7 million . Given the timing and complexity of the Maximal acquisition, the allocation of the purchase price is preliminary and will likely change in future periods, perhaps significantly as fair value estimates of the assets acquired and liabilities assumed are refined during the measurement period. The Company is in the process of obtaining a third-party valuation of the assets acquired and liabilities assumed; thus the provisional measurements are subject to change. In addition, the cash consideration paid will be finalized with KNSN and is subject to customary working capital, cash and debt adjustments. The Company will complete the purchase price allocation no later than the second quarter of 2019. The following table summarizes the preliminary estimated fair values of the assets acquired and the liabilities assumed of Maximal as of June 1, 2018: Cash $ 15.7 Accounts receivable 16.8 Inventories 18.5 Property, plant and equipment 27.0 Intangible Assets 18.7 Other assets 0.6 Total assets acquired $ 97.3 Accounts payable 35.8 Long-term deferred tax liabilities 5.7 Other liabilities 17.1 Total liabilities assumed $ 58.6 Noncontrolling interest 27.0 Net assets acquired $ 11.7 Initial purchase price 90.0 Goodwill $ 78.3 Acquired Intangible Assets Preliminary Fair Value Preliminary Weighted-Average Useful Lives (Years) Distribution network $ 9.7 20 Patents 5.6 7 Trademarks 3.4 20 Total $ 18.7 The assignment of acquired goodwill to reporting units has not been determined. The $78.3 million of goodwill has been included in the JAPIC segment . The results of Maximal’s operations have been included in the unaudited condensed consolidated financial statements since the acquisition date and are reflected in the JAPIC segment. The Company recognized $1.9 million and $0.5 million of acquisition-related costs, which are included in the Americas segment during the second quarter of 2018 and 2017, respectively, and $2.4 million and $1.4 million during the first six months of 2018 and 2017, respectively. These costs are included in the line “Selling, general and administrative expenses” in the unaudited condensed consolidated statements of operations. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates, Policy [Policy Text Block] | These financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position of the Company as of June 30, 2018 and the results of its operations for the three and six months ended June 30, 2018 and 2017 and the results of its cash flows and changes in equity for the six months ended June 30, 2018 and 2017 have been included. These unaudited condensed consolidated financial statements should be read in conjunction with the 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 . The accompanying unaudited condensed consolidated balance sheet at December 31, 2017 has been derived from the audited financial statements at that date but does not include all of the information or notes required by U.S. generally accepted accounting principles for complete financial statements. |
Recently Issued Accounting St24
Recently Issued Accounting Standards Recently Issued Accounting Standards (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Standard Description Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) (Subsequent ASUs have been issued in 2015, 2016 and 2017 to update or clarify this guidance) The new guidance is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. See Note 3 for additional information. ASU No. 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities The guidance requires equity investments previously accounted for under the cost method of accounting to be measured at fair value and recognized in net income. In addition, the guidance defines measurement and presentation of financial instruments. The Company recorded a cumulative adjustment to retained earnings for deferred gains related to equity investments in third parties as of January 1, 2018 of $3.6 million. Subsequent changes in the fair value of these investments are recognized directly in earnings. ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments The guidance clarifies the classification of certain types of cash receipts and cash payments. In addition, the guidance provides for the application of the predominance principle when certain cash receipts and payments have aspects of more than one class of cash flows. ASU No. 2016-16, Income Taxes (Topic 740) The guidance allows for recognition of current and deferred income taxes for an intra-entity transfer of an asset other than inventory. The guidance allows for more accurate representation of the economics of an intra-entity asset transfer which will require income tax consequences of the transfer, including income taxes payable or paid. ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash The guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business The guidance clarifies the definition of a business to assist entities in evaluating whether transactions should be accounted for as acquisitions or disposals of businesses. ASU 2017-05, Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition The guidance clarifies the scope and accounting of a financial asset that meets the definition of an "in-substance nonfinancial asset" and defines the term, "in-substance nonfinancial asset," in addition to partial sales of nonfinancial assets. ASU 2017-07, Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement The guidance requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. As of January 1, 2018, the Company presents the components of net benefit cost, other than service cost, in other (income) expense for its pension plans. Service cost for the Company's pension plans continues to be reported in operating profit. Accordingly, the Company has reclassified $0.8 million and $1.6 million of income related to the components of net benefit cost, other than service cost, to other (income) expense for the three and six months ended June 30, 2017, respectively, in the unaudited condensed consolidated statements of operations. ASU No. 2018-05, Income Taxes (Topic 740) The guidance codifies Staff Accounting Bulletin No. 118 regarding the application of US GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Cuts and Jobs Act (the "Tax Reform Act"). See Note 5 for additional details regarding the status of the Company's provisional amounts recorded at December 31, 2017 as a result of the Tax Reform Act. |
Description of New Accounting Pronouncements Not yet Adopted [Policy Text Block] | Standard Description Required Date of Adoption Effect on the financial statements or other significant matters ASU No. 2016-02, Leases (Topic 842)(Subsequent ASUs have been issued in 2017 and 2018 to update or clarify this guidance) The guidance requires lessees (with the exception of short-term leases) to recognize, at the commencement date, a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. January 1, 2019 The Company's evaluation process of the new standard includes, but is not limited to, evaluating its current lease portfolio, identifying relevant contracts and attributes affected by the standard and determining the required accounting upon adoption. In addition, the Company expects to implement new processes and controls regarding asset financing transactions and financial reporting. The Company continues to evaluate its global leasing portfolio and train relevant personnel. In addition, the Company has started abstraction of key attributes within lease contracts and expects to begin systems-related implementations required for the new standard in the third quarter of 2018. This evaluation and implementation will continue throughout 2018. While the Company's evaluation of the alternative methods of adoption, practical expedients and the effect on its financial position, results of operations, cash flows and related disclosures is ongoing; the Company anticipates the adoption will materially affect the consolidated balance sheets and will require changes to the Company's systems and processes. ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities The guidance makes targeted changes to the hedge accounting model intended to facilitate financial reporting that more closely reflects an entity’s risk management activities and to simplify the application of hedge accounting. Changes include expanding the types of risk management strategies eligible for hedge accounting, easing the documentation and effectiveness assessment requirements, changing how ineffectiveness is measured and changing the presentation and disclosure requirements for hedge accounting activities. January 1, 2019 The Company is currently evaluating the guidance and the effect on its financial position, results of operations, cash flows and related disclosures. ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income The guidance provides an election to reclassify the stranded tax effects resulting from the Tax Reform Act from OCI to retained earnings. In addition, the guidance requires new disclosures regarding the election to adopt and the manner in which tax effects remaining in OCI are released. January 1, 2019 The Company is currently evaluating the guidance and the effect on its financial position, results of operations, cash flows and related disclosures. ASU 2018-07, Compensation-Stock Compensation (Topic 718) The guidance addresses the accounting for non-employee share-based payment transactions. January 1, 2019 The Company is currently evaluating the guidance and the effect on its financial position, results of operations, cash flows and related disclosures. ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326) The guidance eliminates the probable initial recognition threshold and requires an entity to reflect its current estimate of all expected credit losses. The guidance also requires additional disclosures in certain circumstances. January 1, 2020 The Company is currently evaluating the alternative methods of adoption and the effect on its financial position, results of operations, cash flows and related disclosures. ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment The guidance removes the second step of the two-step test for the measurement of goodwill impairment. The guidance allows for early adoption for impairment testing dates after January 1, 2017. January 1, 2020 The Company is currently evaluating the timing of adoption and the effect on its current impairment testing process. |
Revenue Recognition Revenue R25
Revenue Recognition Revenue Recognition (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue Recognition, Deferred Revenue [Policy Text Block] | Deferred Revenue: The Company defers revenue for transactions that have not met the criteria for recognition at the time payment is collected, including extended warranties and maintenance contracts. In addition, for certain products, services and customer types, the Company collects payment prior to the transfer of control to the customer. |
Revenue Recognition, Sales of Goods [Policy Text Block] | Revenue is recognized when obligations under the terms of a contract with the customer are satisfied which occurs when control of the trucks, parts, or services are transferred to the customer. Revenue is measured as the amount of consideration expected to be received in exchange for transferring goods or providing services. The satisfaction of performance obligations under the terms of a revenue contract generally gives rise for the right to payment from the customer. The Company's standard payment terms vary by the type and location of the customer and the products or services offered. Generally, the time between when revenue is recognized and when payment is due is not significant. Given the insignificant days between revenue recognition and receipt of payment, financing components do not exist between the Company and its customers. Taxes collected from customers are excluded from revenue. The estimated costs of product warranties are recognized as expense when the products are sold. See Note 11 for further information on product warranties. |
Revenue Recognition, Multiple-deliverable Arrangements, Description [Policy Text Block] | For contracts with customers that include multiple performance obligations, judgment is required to determine whether performance obligations specified in these contracts are distinct and should be accounted for as separate revenue transactions for recognition purposes. For such arrangements, revenue is allocated to each performance obligation based on its relative standalone selling price. Standalone selling prices are generally determined based on the prices charged to customers or using expected cost plus margin. |
Financial Instruments and Der26
Financial Instruments and Derivative Financial Instruments (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives, Policy [Policy Text Block] | The Company periodically enters into foreign currency exchange contracts that do not meet the criteria for hedge accounting. These derivatives are used to reduce the Company's exposure to foreign currency risk related to forecasted purchase or sales transactions or forecasted intercompany cash payments or settlements. Gains and losses on these derivatives are generally recognized in cost of sales. The Company periodically enters into forward foreign currency contracts that are designated as net investment hedges of the Company's net investment in its foreign subsidiaries. For derivative instruments that are designated and qualified as a hedge of a net investment in foreign currency, the gain or loss is reported in other comprehensive income as part of the cumulative translation adjustment to the extent it is effective. The Company utilizes the forward-rate method of assessing hedge effectiveness. Any ineffective portion of net investment hedges would be recognized in the unaudited condensed consolidated statement of operations in the same period as the change. The Company uses cross-currency swaps, which hedge the variability of expected future cash flows that are attributable to foreign currency risk of certain intercompany loans. These agreements include initial and final exchanges of principal and associated interest payments from fixed euro denominated to fixed U.S.-denominated amounts. Changes in the fair value of cross-currency swaps that are effective as hedges are recorded in OCI. Deferred gains or losses are reclassified from OCI to the unaudited condensed consolidated statements of operations in the same period as the gains or losses from the underlying transactions are recorded and are generally recognized in other (income) expense and interest expense. The ineffective portion of derivatives that are classified as hedges is immediately recognized in earnings and is also generally recognized in other (income) expense. The Company uses interest rate swap agreements to partially reduce risks related to floating rate financing agreements that are subject to changes in the market rate of interest. Terms of the interest rate swap agreements require the Company to receive a variable interest rate and pay a fixed interest rate. The Company's interest rate swap agreements and its variable rate financings are predominately based upon the one or three-month LIBOR. Changes in the fair value of interest rate swap agreements that are effective as hedges are recorded in OCI. Deferred gains or losses are reclassified from OCI to the unaudited condensed consolidated statements of operations in the same period as the gains or losses from the underlying transactions are recorded and are generally recognized in interest expense. The ineffective portion of derivatives that are classified as hedges is immediately recognized in earnings and included on the line "Other" in the "Other (income) expense" section of the unaudited condensed consolidated statements of operations. Cash flows from hedging activities are reported in the unaudited condensed consolidated statements of cash flows with the same classification as the hedged item, generally as a component of cash flows from operations. The Company measures its derivatives at fair value on a recurring basis using significant observable inputs. This valuation methodology is Level 2 as defined in the fair value hierarchy. The Company uses a present value technique that incorporates yield curves and foreign currency spot rates to value its derivatives and also incorporates the effect of the Company's and its counterparties' credit risk into the valuation. |
Product Warranties (Policies)
Product Warranties (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Product Liability Contingency [Line Items] | |
Standard Product Warranty, Policy [Policy Text Block] | The Company provides a standard warranty on its lift trucks, generally for twelve months or 1,000 to 2,000 hours . For certain series of lift trucks, the Company provides a standard warranty of one to two years or 2,000 or 4,000 hours . For certain components in some series of lift trucks, the Company provides a standard warranty of two to three years or 4,000 to 6,000 hours . The Company estimates the costs which may be incurred under its standard warranty programs and records a liability for such costs at the time product revenue is recognized. |
Extended Product Warranty, Policy [Policy Text Block] | In addition, the Company sells separately-priced extended warranty agreements for its lift trucks, which generally provide a warranty for an additional two to five years or up to 2,400 to 10,000 hours . The specific terms and conditions of those warranties vary depending upon the product sold and the country in which the Company does business. Revenue received for the sale of extended warranty contracts is deferred and recognized in the same manner as the costs incurred to perform under the warranty contracts. |
Equity Investments (Policies)
Equity Investments (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Consolidation, Variable Interest Entity, Policy [Policy Text Block] | The Company maintains an interest in one variable interest entity, HYGFS. HYGFS is a joint venture with WF formed primarily for the purpose of providing financial services to independent Hyster ® and Yale ® lift truck dealers and National Account customers in the United States and is included in the Americas segment. The Company does not have a controlling financial interest or have the power to direct the activities that most significantly affect the economic performance of HYGFS. Therefore, the Company is not the primary beneficiary and uses the equity method to account for its 20% interest in HYGFS. The Company does not consider its variable interest in HYGFS to be significant. |
Recently Issued Accounting St29
Recently Issued Accounting Standards Recently Issued Accounting Standards (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | Recently Issued Accounting Standards The following table provides a brief description of recent accounting pronouncements adopted January 1, 2018. Unless otherwise noted, the adoption of these standards did not have a material effect on the Company's financial position, results of operations, cash flows or related disclosures. Standard Description Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) (Subsequent ASUs have been issued in 2015, 2016 and 2017 to update or clarify this guidance) The new guidance is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. See Note 3 for additional information. ASU No. 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities The guidance requires equity investments previously accounted for under the cost method of accounting to be measured at fair value and recognized in net income. In addition, the guidance defines measurement and presentation of financial instruments. The Company recorded a cumulative adjustment to retained earnings for deferred gains related to equity investments in third parties as of January 1, 2018 of $3.6 million. Subsequent changes in the fair value of these investments are recognized directly in earnings. ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments The guidance clarifies the classification of certain types of cash receipts and cash payments. In addition, the guidance provides for the application of the predominance principle when certain cash receipts and payments have aspects of more than one class of cash flows. ASU No. 2016-16, Income Taxes (Topic 740) The guidance allows for recognition of current and deferred income taxes for an intra-entity transfer of an asset other than inventory. The guidance allows for more accurate representation of the economics of an intra-entity asset transfer which will require income tax consequences of the transfer, including income taxes payable or paid. ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash The guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business The guidance clarifies the definition of a business to assist entities in evaluating whether transactions should be accounted for as acquisitions or disposals of businesses. ASU 2017-05, Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition The guidance clarifies the scope and accounting of a financial asset that meets the definition of an "in-substance nonfinancial asset" and defines the term, "in-substance nonfinancial asset," in addition to partial sales of nonfinancial assets. ASU 2017-07, Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement The guidance requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. As of January 1, 2018, the Company presents the components of net benefit cost, other than service cost, in other (income) expense for its pension plans. Service cost for the Company's pension plans continues to be reported in operating profit. Accordingly, the Company has reclassified $0.8 million and $1.6 million of income related to the components of net benefit cost, other than service cost, to other (income) expense for the three and six months ended June 30, 2017, respectively, in the unaudited condensed consolidated statements of operations. ASU No. 2018-05, Income Taxes (Topic 740) The guidance codifies Staff Accounting Bulletin No. 118 regarding the application of US GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Cuts and Jobs Act (the "Tax Reform Act"). See Note 5 for additional details regarding the status of the Company's provisional amounts recorded at December 31, 2017 as a result of the Tax Reform Act. The following table provides a brief description of recent accounting pronouncements not yet adopted: Standard Description Required Date of Adoption Effect on the financial statements or other significant matters ASU No. 2016-02, Leases (Topic 842)(Subsequent ASUs have been issued in 2017 and 2018 to update or clarify this guidance) The guidance requires lessees (with the exception of short-term leases) to recognize, at the commencement date, a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. January 1, 2019 The Company's evaluation process of the new standard includes, but is not limited to, evaluating its current lease portfolio, identifying relevant contracts and attributes affected by the standard and determining the required accounting upon adoption. In addition, the Company expects to implement new processes and controls regarding asset financing transactions and financial reporting. The Company continues to evaluate its global leasing portfolio and train relevant personnel. In addition, the Company has started abstraction of key attributes within lease contracts and expects to begin systems-related implementations required for the new standard in the third quarter of 2018. This evaluation and implementation will continue throughout 2018. While the Company's evaluation of the alternative methods of adoption, practical expedients and the effect on its financial position, results of operations, cash flows and related disclosures is ongoing; the Company anticipates the adoption will materially affect the consolidated balance sheets and will require changes to the Company's systems and processes. ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities The guidance makes targeted changes to the hedge accounting model intended to facilitate financial reporting that more closely reflects an entity’s risk management activities and to simplify the application of hedge accounting. Changes include expanding the types of risk management strategies eligible for hedge accounting, easing the documentation and effectiveness assessment requirements, changing how ineffectiveness is measured and changing the presentation and disclosure requirements for hedge accounting activities. January 1, 2019 The Company is currently evaluating the guidance and the effect on its financial position, results of operations, cash flows and related disclosures. ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income The guidance provides an election to reclassify the stranded tax effects resulting from the Tax Reform Act from OCI to retained earnings. In addition, the guidance requires new disclosures regarding the election to adopt and the manner in which tax effects remaining in OCI are released. January 1, 2019 The Company is currently evaluating the guidance and the effect on its financial position, results of operations, cash flows and related disclosures. ASU 2018-07, Compensation-Stock Compensation (Topic 718) The guidance addresses the accounting for non-employee share-based payment transactions. January 1, 2019 The Company is currently evaluating the guidance and the effect on its financial position, results of operations, cash flows and related disclosures. ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326) The guidance eliminates the probable initial recognition threshold and requires an entity to reflect its current estimate of all expected credit losses. The guidance also requires additional disclosures in certain circumstances. January 1, 2020 The Company is currently evaluating the alternative methods of adoption and the effect on its financial position, results of operations, cash flows and related disclosures. ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment The guidance removes the second step of the two-step test for the measurement of goodwill impairment. The guidance allows for early adoption for impairment testing dates after January 1, 2017. January 1, 2020 The Company is currently evaluating the timing of adoption and the effect on its current impairment testing process. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Table Text Block] | Balance at December 31, 2017 Adjustments due to New Revenue Standard Balance at January 1, 2018 Accounts receivable, net $ 453.0 $ 0.5 $ 453.5 Inventories, net 411.9 (0.3 ) 411.6 Prepaid expenses and other 46.4 1.1 47.5 Other current liabilities 162.3 1.0 163.3 Retained earnings 389.1 0.3 389.4 |
Revenue, Initial Application Period Cumulative Effect Transition, Explanation of Change [Table Text Block] | THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, 2018 JUNE 30, 2018 As Reported Amount before the new revenue standard Change Higher/(Lower) As Reported Amount before the new revenue standard Change Higher/(Lower) Revenues $ 765.6 $ 765.5 $ 0.1 $ 1,553.8 $ 1,553.4 $ 0.4 Cost of sales 639.4 639.3 0.1 1,295.5 1,295.1 0.4 Gross profit 126.2 126.2 — 258.3 258.3 — Operating profit 10.8 10.8 — 30.0 30.0 — Income before income taxes 9.5 9.5 — 29.3 29.3 — Income tax provision 3.8 3.8 — 8.7 8.7 — Net income attributable to stockholders 5.6 5.6 — 20.5 20.5 — JUNE 30, 2018 As Reported Amount before the new revenue standard Change Higher/(Lower) Accounts receivable, net $ 424.7 $ 424.4 $ 0.3 Inventories, net 467.1 467.4 (0.3 ) Prepaid expenses and other 56.4 56.6 (0.2 ) Other current liabilities 169.0 169.5 (0.5 ) Retained earnings 403.4 403.5 (0.1 ) |
Disaggregation of Revenue [Table Text Block] | THREE MONTHS ENDED JUNE 30, 2018 Lift truck business Americas EMEA JAPIC Bolzoni Nuvera Elims Total Dealer sales $ 280.6 $ 159.5 $ 47.9 $ — $ — $ — $ 488.0 Direct customer sales 74.4 1.2 — — — — 75.6 Aftermarket sales 91.7 26.7 9.2 — — — 127.6 Other 24.9 3.6 0.4 52.5 0.4 (7.4 ) 74.4 Total Revenues $ 471.6 $ 191.0 $ 57.5 $ 52.5 $ 0.4 $ (7.4 ) $ 765.6 SIX MONTHS ENDED JUNE 30, 2018 Lift truck business Americas EMEA JAPIC Bolzoni Nuvera Elims Total Dealer sales $ 582.5 $ 324.8 $ 87.9 $ — $ — $ — $ 995.2 Direct customer sales 156.1 2.9 — — — — 159.0 Aftermarket sales 179.3 53.7 18.4 — — — 251.4 Other 49.6 7.5 0.7 103.7 0.7 (14.0 ) 148.2 Total Revenues $ 967.5 $ 388.9 $ 107.0 $ 103.7 $ 0.7 $ (14.0 ) $ 1,553.8 |
Deferred Revenue, by Arrangement, Disclosure [Table Text Block] | Deferred Revenue Balance, December 31, 2017 $ 51.6 Customer deposits and billings 20.6 Revenue recognized (23.2 ) Balance, June 30, 2018 $ 49.0 |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Financial information for each reportable segment is presented in the following table: THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30 JUNE 30 2018 2017 2018 2017 Revenues from external customers Americas $ 471.6 $ 432.9 $ 967.5 $ 898.9 EMEA 191.0 172.6 388.9 335.0 JAPIC 57.5 42.2 107.0 86.0 Lift truck business 720.1 647.7 1,463.4 1,319.9 Bolzoni 52.5 41.9 103.7 83.5 Nuvera 0.4 0.4 0.7 3.0 Eliminations (7.4 ) (4.5 ) (14.0 ) (7.8 ) Total $ 765.6 $ 685.5 $ 1,553.8 $ 1,398.6 Gross profit (loss) Americas $ 79.1 $ 82.7 $ 164.9 $ 167.6 EMEA 25.1 23.6 50.9 46.1 JAPIC 6.1 4.2 10.6 9.7 Lift truck business 110.3 110.5 226.4 223.4 Bolzoni 16.8 12.4 33.8 26.2 Nuvera (0.7 ) (0.9 ) (1.6 ) (1.5 ) Eliminations (0.2 ) (0.3 ) (0.3 ) (0.3 ) Total $ 126.2 $ 121.7 $ 258.3 $ 247.8 Operating profit (loss) Americas $ 18.0 $ 27.7 $ 45.9 $ 57.3 EMEA 1.4 2.3 2.3 3.2 JAPIC (2.1 ) (2.2 ) (4.3 ) (2.9 ) Lift truck business 17.3 27.8 43.9 57.6 Bolzoni 3.2 0.5 5.9 2.8 Nuvera (9.5 ) (10.5 ) (19.5 ) (20.0 ) Eliminations (0.2 ) (0.3 ) (0.3 ) (0.3 ) Total $ 10.8 $ 17.5 $ 30.0 $ 40.1 Net income (loss) attributable to stockholders Americas $ 10.2 $ 23.8 $ 30.6 $ 44.3 EMEA 1.3 2.2 2.3 3.3 JAPIC (0.5 ) (2.2 ) (1.2 ) (1.5 ) Lift truck business 11.0 23.8 31.7 46.1 Bolzoni 2.1 (0.1 ) 4.0 1.4 Nuvera (6.9 ) (6.3 ) (14.2 ) (12.0 ) Eliminations (0.6 ) (1.0 ) (1.0 ) (1.0 ) Total $ 5.6 $ 16.4 $ 20.5 $ 34.5 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30 JUNE 30 2018 2017 2018 2017 Income before income taxes $ 9.5 $ 18.3 $ 29.3 $ 42.6 Statutory taxes (21% in 2018 and 35% in 2017) $ 2.0 $ 6.4 $ 6.2 $ 14.9 Interim adjustment 0.2 0.3 0.5 0.3 Permanent adjustments: Non-U.S. rate differences (0.5 ) (2.4 ) (0.8 ) (4.8 ) Other 0.9 — 1.5 (0.5 ) $ 0.4 $ (2.4 ) $ 0.7 $ (5.3 ) Discrete items $ 1.2 $ (2.4 ) $ 1.3 $ (1.8 ) Income tax provision $ 3.8 $ 1.9 $ 8.7 $ 8.1 Reported income tax rate 40.0 % 10.4 % 29.7 % 19.0 % |
Reclassifications Out Of Accu33
Reclassifications Out Of Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Reclassifications Out Of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table summarizes reclassifications out of accumulated other comprehensive income (loss) ("OCI") as recorded in the unaudited condensed consolidated statements of operations: Details about OCI Components Amount Reclassified from OCI Affected Line Item in the Statement Where Net Income Is Presented THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30 JUNE 30 2018 2017 2018 2017 Gain (loss) on cash flow hedges: Interest rate contracts $ (0.1 ) $ — $ (0.1 ) $ — Interest expense Foreign exchange contracts 3.1 (1.3 ) 2.1 (1.5 ) Cost of sales Total before tax 3.0 (1.3 ) 2.0 (1.5 ) Income before income taxes Tax expense (benefit) (1.0 ) 0.7 (0.8 ) 0.8 Income tax provision Net of tax $ 2.0 $ (0.6 ) $ 1.2 $ (0.7 ) Net income Amortization of defined benefit pension items: Actuarial loss $ (0.9 ) $ (1.2 ) $ (1.9 ) $ (2.2 ) (a) Prior service credit 0.1 0.1 0.2 0.2 (a) Total before tax (0.8 ) (1.1 ) (1.7 ) (2.0 ) Income before income taxes Tax expense 0.1 0.4 0.3 0.6 Income tax provision Net of tax $ (0.7 ) $ (0.7 ) $ (1.4 ) $ (1.4 ) Net income Total reclassifications for the period $ 1.3 $ (1.3 ) $ (0.2 ) $ (2.1 ) (a) These OCI components are included in the computation of net pension cost (see Note 8 for additional details). |
Financial Instruments and Der34
Financial Instruments and Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Derivative [Line Items] | |
Schedule of Interest Rate Derivatives [Table Text Block] | Notional Amount Average Fixed Rate June 30 December 31 June 30 December 31 2018 2017 2018 2017 Term at June 30, 2018 $ 100.0 $ 100.0 1.47 % 1.47 % Extending to December 2018 $ 56.5 $ 56.5 1.94 % 1.94 % Extending to November 2022 $ 83.5 $ 83.5 2.20 % 2.20 % December 2018 to May 2023 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The following table summarizes the fair value of derivative instruments reflected on a gross basis by contract as recorded in the unaudited condensed consolidated balance sheets: Asset Derivatives Liability Derivatives Balance Sheet Location JUNE 30 DECEMBER 31 Balance Sheet Location JUNE 30 DECEMBER 31 Derivatives designated as hedging instruments Cash Flow Hedges Interest rate swap agreements Current Prepaid expenses and other $ 0.4 $ — Prepaid expenses and other $ — $ 0.1 Long-term Other non-current assets 2.9 0.7 Other non-current assets — — Other long-term liabilities — — Other long-term liabilities — 0.1 Foreign currency exchange contracts Current Prepaid expenses and other 6.2 8.3 Prepaid expenses and other 4.5 4.0 Other current liabilities 1.6 2.8 Other current liabilities 3.5 4.3 Long-term Other non-current assets 0.8 3.9 Other non-current assets 0.3 1.3 Other long-term liabilities 0.9 0.5 Other long-term liabilities 13.5 7.7 Total derivatives designated as hedging instruments $ 12.8 $ 16.2 $ 21.8 $ 17.5 Derivatives not designated as hedging instruments Cash Flow Hedges Interest rate swap agreements Current Prepaid expenses and other $ 0.5 $ 0.4 Prepaid expenses and other $ — $ — Long-term Other long-term liabilities — — Other long-term liabilities — 0.1 Foreign currency exchange contracts Current Prepaid expenses and other 2.5 0.8 Prepaid expenses and other 0.1 0.4 Other current liabilities 0.8 0.1 Other current liabilities 1.0 0.8 Long-term Other non-current assets 0.1 — Other long-term liabilities — — Total derivatives not designated as hedging instruments $ 3.9 $ 1.3 $ 1.1 $ 1.3 Total derivatives $ 16.7 $ 17.5 $ 22.9 $ 18.8 |
Schedule of Derivative Instruments in the Statement of Financial Position by Counterparty [Table Text Block] | The following table summarizes the offsetting of the fair value of derivative instruments on a gross basis by counterparty as recorded in the unaudited condensed consolidated balance sheets: Derivative Assets as of June 30, 2018 Derivative Liabilities as of June 30, 2018 Gross Amounts of Recognized Assets Gross Amounts Offset Net Amounts Presented Net Amount Gross Amounts of Recognized Liabilities Gross Amounts Offset Net Amounts Presented Net Amount Cash Flow Hedges Interest rate swap agreements $ 3.8 $ — $ 3.8 $ 3.8 $ — $ — $ — $ — Foreign currency exchange contracts 4.7 (4.7 ) — — 14.7 (4.7 ) 10.0 10.0 Total derivatives $ 8.5 $ (4.7 ) $ 3.8 $ 3.8 $ 14.7 $ (4.7 ) $ 10.0 $ 10.0 Derivative Assets as of December 31, 2017 Derivative Liabilities as of December 31, 2017 Gross Amounts of Recognized Assets Gross Amounts Offset Net Amounts Presented Net Amount Gross Amounts of Recognized Liabilities Gross Amounts Offset Net Amounts Presented Net Amount Cash Flow Hedges Interest rate swap agreements $ 1.0 $ (0.2 ) $ 0.8 $ 0.8 $ 0.2 $ (0.2 ) $ — $ — Foreign currency exchange contracts 7.3 (7.3 ) — — 9.4 (7.3 ) 2.1 2.1 Total derivatives $ 8.3 $ (7.5 ) $ 0.8 $ 0.8 $ 9.6 $ (7.5 ) $ 2.1 $ 2.1 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) Location of Gain or (Loss) Reclassified from OCI into Income (Effective Portion) Amount of Gain or (Loss) Reclassified from OCI into Income (Effective Portion) Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) THREE MONTHS ENDED SIX MONTHS ENDED THREE MONTHS ENDED SIX MONTHS ENDED THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30 JUNE 30 JUNE 30 Derivatives designated as hedging instruments 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 Cash Flow Hedges Interest rate swap agreements $ 0.7 $ (0.4 ) $ 2.7 $ (0.4 ) Interest expense $ (0.1 ) $ — $ (0.1 ) $ — Other $ — $ — $ — $ — Foreign currency exchange contracts (24.1 ) 6.7 (8.5 ) 13.7 Cost of sales 3.1 (1.3 ) 2.1 (1.5 ) Cost of sales — — $ — $ — Total $ (23.4 ) $ 6.3 $ (5.8 ) $ 13.3 $ 3.0 $ (1.3 ) $ 2.0 $ (1.5 ) $ — $ — $ — $ — Amount of Gain or (Loss) Recognized in Income on Derivative THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30 Derivatives Not Designated as Hedging Instruments Location of Gain or (Loss) Recognized in Income on Derivative 2018 2017 2018 2017 Cash Flow Hedges Interest rate swap agreements Other $ — $ (0.2 ) $ 0.3 $ (0.1 ) Foreign currency exchange contracts Cost of sales (1.5 ) 2.4 (1.2 ) 1.7 Total $ (1.5 ) $ 2.2 $ (0.9 ) $ 1.6 |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Defined Benefit Plan [Abstract] | |
Schedule of Costs of Retirement Plans [Table Text Block] | THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30 JUNE 30 2018 2017 2018 2017 U.S. Pension Interest cost $ 0.7 $ 0.7 $ 1.3 $ 1.4 Expected return on plan assets (1.3 ) (1.3 ) (2.5 ) (2.5 ) Settlement loss 0.7 — 0.7 — Amortization of actuarial loss 0.4 0.5 0.9 0.9 Amortization of prior service credit (0.1 ) (0.1 ) (0.2 ) (0.2 ) Total $ 0.4 $ (0.2 ) $ 0.2 $ (0.4 ) Non-U.S. Pension Service cost $ — $ — $ 0.1 $ 0.1 Interest cost 1.1 1.0 2.1 2.0 Expected return on plan assets (2.7 ) (2.3 ) (5.4 ) (4.5 ) Amortization of actuarial loss 0.5 0.7 1.0 1.3 Total $ (1.1 ) $ (0.6 ) $ (2.2 ) $ (1.1 ) |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Schedule of Inventory, Current [Table Text Block] | JUNE 30 DECEMBER 31 Finished goods and service parts $ 223.6 $ 193.7 Work in process 23.5 19.9 Raw materials 265.6 239.0 Total manufactured inventories 512.7 452.6 LIFO reserve (45.6 ) (40.7 ) Total inventory $ 467.1 $ 411.9 |
Product Warranties (Tables)
Product Warranties (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Product Liability Contingency [Line Items] | |
Schedule of Product Warranty Liability [Table Text Block] | 2018 Balance at December 31, 2017 $ 51.0 Current year warranty expense 18.0 Change in estimate related to pre-existing warranties 1.3 Payments made (16.4 ) Foreign currency effect (0.6 ) Balance at June 30, 2018 $ 53.3 |
Guarantees (Tables)
Guarantees (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Guarantees [Abstract] | |
Schedule of Guarantor Obligations [Table Text Block] | HYGFS Total Total recourse or repurchase obligations $ 142.2 $ 173.7 Less: exposure limited for certain dealers 42.8 42.8 Plus: 7.5% of original loan balance 13.1 13.1 112.5 144.0 Incremental obligation related to guarantee to WF 208.3 208.3 Total exposure related to guarantees $ 320.8 $ 352.3 |
Equity Investments (Tables)
Equity Investments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments [Table Text Block] | THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30 JUNE 30 2018 2017 2018 2017 Revenues $ 105.0 $ 92.9 $ 205.5 $ 178.0 Gross profit $ 31.4 $ 28.1 $ 63.3 $ 55.1 Income from continuing operations $ 8.5 $ 6.7 $ 18.7 $ 13.2 Net income $ 8.5 $ 6.7 $ 18.7 $ 13.2 |
Acquisitions Acquisitions (Tabl
Acquisitions Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Cash $ 15.7 Accounts receivable 16.8 Inventories 18.5 Property, plant and equipment 27.0 Intangible Assets 18.7 Other assets 0.6 Total assets acquired $ 97.3 Accounts payable 35.8 Long-term deferred tax liabilities 5.7 Other liabilities 17.1 Total liabilities assumed $ 58.6 Noncontrolling interest 27.0 Net assets acquired $ 11.7 Initial purchase price 90.0 Goodwill $ 78.3 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | Acquired Intangible Assets Preliminary Fair Value Preliminary Weighted-Average Useful Lives (Years) Distribution network $ 9.7 20 Patents 5.6 7 Trademarks 3.4 20 Total $ 18.7 |
Basis of Presentation (Details)
Basis of Presentation (Details) | Jun. 30, 2018 |
HYGFS [Member] | |
Equity Method Investment, Ownership Percentage | 20.00% |
SN [Member] | |
Equity Method Investment, Ownership Percentage | 50.00% |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Revenue, Practical Expedient, Incremental Cost of Obtaining Contract [true/false] | true | ||||
Revenue, Information Used to Assess Variable Consideration Constraint | The Company also records variable consideration in the form of estimated reductions to revenues for customer programs and incentive offerings, including special pricing agreements, promotions and other volume-based incentives. Lift truck sales revenue is recorded net of estimated discounts. The estimated discount amount is based upon historical experience and trend analysis for each lift truck model. In addition to standard discounts, dealers can also request additional discounts that allow them to offer price concessions to customers. From time to time, the Company offers special incentives to increase market share or dealer stock and offers certain customers volume rebates if a specified cumulative level of purchases is obtained. | ||||
Revenue, Performance Obligation Satisfied at Point in Time, Transfer of Control | The majority of the Company's sales contracts contain performance obligations satisfied at a point in time when title and risks and rewards of ownership have transferred to the customer. Revenue for service contracts are recognized as the services are provided. Dealer sales are recognized when the Company transfers control based on the shipping terms of the contract, which is generally when the truck is shipped from the manufacturing facility to the dealers. The majority of direct customer sales are to National Account customers. In these transactions, the Company transfers control and recognizes revenue when it delivers the product to the customer according to the terms of the contract. Bolzoni revenue is primarily the sale of attachments to customers. In these transactions, the Company transfers control and recognizes revenue according to the shipping terms of the contract. | ||||
Revenue, Performance Obligation, Description of Returns and Other Similar Obligations | When customers are given the right to return eligible parts and accessories, the Company estimates the expected returns based on an analysis of historical experience. The Company adjusts estimated revenues at the earlier of when the most likely amount of consideration expected to be received changes or when the consideration becomes fixed. | ||||
Accounts receivable, net | $ 424.7 | $ 424.7 | $ 453 | ||
Inventories, net | (467.1) | (467.1) | (411.9) | ||
Prepaid expenses and other | (56.4) | (56.4) | (46.4) | ||
Other current liabilities | (169) | (169) | (162.3) | ||
Retained earnings | 403.4 | 403.4 | 389.1 | ||
Revenues | 765.6 | $ 685.5 | 1,553.8 | $ 1,398.6 | |
Cost of sales | 639.4 | 563.8 | 1,295.5 | 1,150.8 | |
Gross Profit | 126.2 | 121.7 | 258.3 | 247.8 | |
Operating Profit | 10.8 | 17.5 | 30 | 40.1 | |
Income Before Income Taxes | 9.5 | 18.3 | 29.3 | 42.6 | |
Income tax provision | 3.8 | 1.9 | 8.7 | 8.1 | |
Net Income Attributable to Stockholders | 5.6 | 16.4 | 20.5 | 34.5 | |
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |||
Deferred Revenue | 49 | 49 | 51.6 | ||
Deferred Revenue, Additions | 20.6 | ||||
Deferred Revenue, Revenue Recognized | (23.2) | ||||
Deferred Revenue, Period Increase (Decrease) | $ 0 | ||||
Revenue, Performance Obligation Satisfied over Time, Method Used, Description | Aftermarket sales represent part sales, extended warranty and maintenance services. For the sale of aftermarket parts, the Company transfers control and recognizes revenue when parts are shipped to the customer. The Company recognizes revenue for extended warranty and maintenance agreements based on the standalone selling price over the life of the contract, which reflects the costs to perform under these contracts, which corresponds with, and thereby depicts the transfer of control to the customer. | ||||
Americas [Member] | |||||
Revenues | 471.6 | 432.9 | $ 967.5 | 898.9 | |
Gross Profit | 79.1 | 82.7 | 164.9 | 167.6 | |
Operating Profit | 18 | 27.7 | 45.9 | 57.3 | |
Net Income Attributable to Stockholders | 10.2 | 23.8 | 30.6 | 44.3 | |
EMEA [Member] | |||||
Revenues | 191 | 172.6 | 388.9 | 335 | |
Gross Profit | 25.1 | 23.6 | 50.9 | 46.1 | |
Operating Profit | 1.4 | 2.3 | 2.3 | 3.2 | |
Net Income Attributable to Stockholders | 1.3 | 2.2 | 2.3 | 3.3 | |
JAPIC [Member] | |||||
Revenues | 57.5 | 42.2 | 107 | 86 | |
Gross Profit | 6.1 | 4.2 | 10.6 | 9.7 | |
Operating Profit | (2.1) | (2.2) | (4.3) | (2.9) | |
Net Income Attributable to Stockholders | (0.5) | (2.2) | (1.2) | (1.5) | |
Bolzoni [Member] | |||||
Revenues | 52.5 | 41.9 | 103.7 | 83.5 | |
Gross Profit | 16.8 | 12.4 | 33.8 | 26.2 | |
Operating Profit | 3.2 | 0.5 | 5.9 | 2.8 | |
Net Income Attributable to Stockholders | 2.1 | (0.1) | 4 | 1.4 | |
Nuvera [Member] | |||||
Revenues | 0.4 | 0.4 | 0.7 | 3 | |
Gross Profit | (0.7) | (0.9) | (1.6) | (1.5) | |
Operating Profit | (9.5) | (10.5) | (19.5) | (20) | |
Net Income Attributable to Stockholders | (6.9) | (6.3) | (14.2) | (12) | |
Consolidation, Eliminations [Member] | |||||
Revenues | (7.4) | (4.5) | (14) | (7.8) | |
Gross Profit | (0.2) | (0.3) | (0.3) | (0.3) | |
Operating Profit | (0.2) | (0.3) | (0.3) | (0.3) | |
Net Income Attributable to Stockholders | (0.6) | $ (1) | (1) | $ (1) | |
Other revenue [Member] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 74.4 | 148.2 | |||
Other revenue [Member] | Americas [Member] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 24.9 | 49.6 | |||
Other revenue [Member] | EMEA [Member] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 3.6 | 7.5 | |||
Other revenue [Member] | JAPIC [Member] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0.4 | 0.7 | |||
Other revenue [Member] | Bolzoni [Member] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 52.5 | 103.7 | |||
Other revenue [Member] | Nuvera [Member] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0.4 | 0.7 | |||
Other revenue [Member] | Consolidation, Eliminations [Member] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | (7.4) | (14) | |||
Aftermarket sales [Member] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 127.6 | 251.4 | |||
Aftermarket sales [Member] | Americas [Member] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 91.7 | 179.3 | |||
Aftermarket sales [Member] | EMEA [Member] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 26.7 | 53.7 | |||
Aftermarket sales [Member] | JAPIC [Member] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 9.2 | 18.4 | |||
Aftermarket sales [Member] | Bolzoni [Member] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |||
Aftermarket sales [Member] | Nuvera [Member] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |||
Sales Channel, Directly to Consumer [Member] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 75.6 | 159 | |||
Sales Channel, Directly to Consumer [Member] | Americas [Member] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 74.4 | 156.1 | |||
Sales Channel, Directly to Consumer [Member] | EMEA [Member] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1.2 | 2.9 | |||
Sales Channel, Directly to Consumer [Member] | JAPIC [Member] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |||
Sales Channel, Directly to Consumer [Member] | Bolzoni [Member] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |||
Sales Channel, Directly to Consumer [Member] | Nuvera [Member] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |||
Sales Channel, Directly to Consumer [Member] | Consolidation, Eliminations [Member] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |||
Sales Channel, Through Intermediary [Member] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 488 | 995.2 | |||
Sales Channel, Through Intermediary [Member] | Americas [Member] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 280.6 | 582.5 | |||
Sales Channel, Through Intermediary [Member] | EMEA [Member] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 159.5 | 324.8 | |||
Sales Channel, Through Intermediary [Member] | JAPIC [Member] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 47.9 | 87.9 | |||
Sales Channel, Through Intermediary [Member] | Bolzoni [Member] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |||
Sales Channel, Through Intermediary [Member] | Nuvera [Member] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |||
Sales Channel, Through Intermediary [Member] | Consolidation, Eliminations [Member] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||
Accounts receivable, net | 424.4 | 424.4 | |||
Inventories, net | (467.4) | (467.4) | |||
Prepaid expenses and other | (56.6) | (56.6) | |||
Other current liabilities | (169.5) | (169.5) | |||
Retained earnings | 403.5 | 403.5 | |||
Revenues | 765.5 | 1,553.4 | |||
Cost of sales | 639.3 | 1,295.1 | |||
Gross Profit | 126.2 | 258.3 | |||
Operating Profit | 10.8 | 30 | |||
Income Before Income Taxes | 9.5 | 29.3 | |||
Income tax provision | 3.8 | 8.7 | |||
Net Income Attributable to Stockholders | 5.6 | 20.5 | |||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||||
Accounts receivable, net | 0.3 | 0.3 | 0.5 | ||
Inventories, net | (0.3) | (0.3) | (0.3) | ||
Prepaid expenses and other | (0.2) | (0.2) | (1.1) | ||
Other current liabilities | (0.5) | (0.5) | (1) | ||
Retained earnings | (0.1) | (0.1) | 0.3 | ||
Revenues | 0.1 | 0.4 | |||
Cost of sales | 0.1 | 0.4 | |||
Gross Profit | 0 | 0 | |||
Operating Profit | 0 | 0 | |||
Income Before Income Taxes | 0 | 0 | |||
Income tax provision | 0 | 0 | |||
Net Income Attributable to Stockholders | $ 0 | $ 0 | |||
Accounting Standards Update 2014-09 [Member] | |||||
Accounts receivable, net | 453.5 | ||||
Inventories, net | (411.6) | ||||
Prepaid expenses and other | (47.5) | ||||
Other current liabilities | (163.3) | ||||
Retained earnings | $ 389.4 |
Business Segments (Details)
Business Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 765.6 | $ 685.5 | $ 1,553.8 | $ 1,398.6 |
Gross profit (loss) | 126.2 | 121.7 | 258.3 | 247.8 |
Operating profit (loss) | 10.8 | 17.5 | 30 | 40.1 |
Net income (loss) attributable to stockholders | 5.6 | 16.4 | 20.5 | 34.5 |
Consolidation, Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (7.4) | (4.5) | (14) | (7.8) |
Gross profit (loss) | (0.2) | (0.3) | (0.3) | (0.3) |
Operating profit (loss) | (0.2) | (0.3) | (0.3) | (0.3) |
Net income (loss) attributable to stockholders | (0.6) | (1) | (1) | (1) |
Americas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 471.6 | 432.9 | 967.5 | 898.9 |
Gross profit (loss) | 79.1 | 82.7 | 164.9 | 167.6 |
Operating profit (loss) | 18 | 27.7 | 45.9 | 57.3 |
Net income (loss) attributable to stockholders | 10.2 | 23.8 | 30.6 | 44.3 |
EMEA [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 191 | 172.6 | 388.9 | 335 |
Gross profit (loss) | 25.1 | 23.6 | 50.9 | 46.1 |
Operating profit (loss) | 1.4 | 2.3 | 2.3 | 3.2 |
Net income (loss) attributable to stockholders | 1.3 | 2.2 | 2.3 | 3.3 |
JAPIC [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 57.5 | 42.2 | 107 | 86 |
Gross profit (loss) | 6.1 | 4.2 | 10.6 | 9.7 |
Operating profit (loss) | (2.1) | (2.2) | (4.3) | (2.9) |
Net income (loss) attributable to stockholders | (0.5) | (2.2) | (1.2) | (1.5) |
Lift truck business [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 720.1 | 647.7 | 1,463.4 | 1,319.9 |
Gross profit (loss) | 110.3 | 110.5 | 226.4 | 223.4 |
Operating profit (loss) | 17.3 | 27.8 | 43.9 | 57.6 |
Net income (loss) attributable to stockholders | 11 | 23.8 | 31.7 | 46.1 |
Bolzoni [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 52.5 | 41.9 | 103.7 | 83.5 |
Gross profit (loss) | 16.8 | 12.4 | 33.8 | 26.2 |
Operating profit (loss) | 3.2 | 0.5 | 5.9 | 2.8 |
Net income (loss) attributable to stockholders | 2.1 | (0.1) | 4 | 1.4 |
Nuvera [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0.4 | 0.4 | 0.7 | 3 |
Gross profit (loss) | (0.7) | (0.9) | (1.6) | (1.5) |
Operating profit (loss) | (9.5) | (10.5) | (19.5) | (20) |
Net income (loss) attributable to stockholders | $ (6.9) | $ (6.3) | $ (14.2) | $ (12) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Amount | $ 1.1 | |||
Effective Income Tax Rate Reconciliation, Other Discrete Amount | $ 4.4 | |||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Discrete Amount | 1.6 | |||
Income Before Income Taxes | $ 9.5 | $ 18.3 | 29.3 | 42.6 |
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | 2 | 6.4 | 6.2 | 14.9 |
Effective Income Tax Rate Reconciliation, Interim Adjustment, Amount | 0.2 | 0.3 | 0.5 | 0.3 |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Amount | (0.5) | (2.4) | (0.8) | (4.8) |
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | 0.9 | 0 | 1.5 | (0.5) |
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | 0.4 | (2.4) | 0.7 | (5.3) |
Other Tax Expense (Benefit) | 1.2 | (2.4) | 1.3 | (1.8) |
Income tax provision | $ 3.8 | $ 1.9 | $ 8.7 | $ 8.1 |
Effective Income Tax Rate Reconciliation, Percent | 40.00% | 10.40% | 29.70% | 19.00% |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% |
Reclassifications Out Of Accu45
Reclassifications Out Of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | $ 3 | $ (1.3) | $ 2 | $ (1.5) | |
Derivative Instruments, Gain (Loss) Reclassified From Accumulated OCI into Income, Effective Portion, Tax | (1) | 0.7 | (0.8) | 0.8 | |
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Net of Tax | 2 | (0.6) | 1.2 | (0.7) | |
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, before Tax | [1] | (0.9) | (1.2) | (1.9) | (2.2) |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Net Prior Service Cost (Credit) Arising During Period, before Tax | [1] | 0.1 | 0.1 | 0.2 | 0.2 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, before Tax | (0.8) | (1.1) | (1.7) | (2) | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | 0.1 | 0.4 | 0.3 | 0.6 | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, after Tax | (0.7) | (0.7) | (1.4) | (1.4) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 1.3 | (1.3) | (0.2) | (2.1) | |
Interest Expense [Member] | Interest Rate Contract [Member] | |||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | (0.1) | 0 | $ (0.1) | 0 | |
Description of Location of Gain (Loss) on Interest Rate Derivative on Income Statement | Interest expense | ||||
Cost of Sales [Member] | Foreign Exchange Contract [Member] | |||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | $ 3.1 | $ (1.3) | $ 2.1 | $ (1.5) | |
Description of Location of Gain (Loss) on Foreign Currency Derivative in Financial Statements | Cost of sales | ||||
Gross Pension Costs Reclassified to Net Income [Member] | |||||
Pension and Postretirement Plans, Income Statement Location of Net Periodic Pension Expense Reclassified from Accumulated OCI | (a) | ||||
Income Before Taxes [Member] | |||||
Derivative Instruments, Income Statement Location of Gain (Loss) Reclassified from Accumulated OCI | Income before income taxes | ||||
Pension and Postretirement Plans, Income Statement Location of Net Periodic Pension Expense Reclassified from Accumulated OCI | Income before income taxes | ||||
Tax (Expense) Benefit [Member] | |||||
Derivative Instruments, Income Statement Location of Gain (Loss) Reclassified from Accumulated OCI | Income tax provision | ||||
Pension and Postretirement Plans, Income Statement Location of Net Periodic Pension Expense Reclassified from Accumulated OCI | Income tax provision | ||||
Net Income (Loss) [Member] | |||||
Derivative Instruments, Income Statement Location of Gain (Loss) Reclassified from Accumulated OCI | Net income | ||||
Pension and Postretirement Plans, Income Statement Location of Net Periodic Pension Expense Reclassified from Accumulated OCI | Net income | ||||
[1] | (a) These OCI components are included in the computation of net pension cost (see Note 8 for additional details). |
Financial Instruments and Der46
Financial Instruments and Derivative Financial Instruments (Balance Sheet) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Derivative Instruments in Hedges, Assets, at Fair Value | $ 12.8 | $ 16.2 |
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 3.9 | 1.3 |
Derivative Asset, Fair Value, Gross Asset | 16.7 | 17.5 |
Derivative Instruments in Hedges, Liabilities, at Fair Value | 21.8 | 17.5 |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | 1.1 | 1.3 |
Derivative Liability, Fair Value, Gross Liability | 22.9 | 18.8 |
Designated as Hedging Instrument [Member] | Prepaid expenses and other [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Interest Rate Cash Flow Hedge Asset at Fair Value | 0.4 | 0 |
Foreign Currency Cash Flow Hedge Asset at Fair Value | 6.2 | 8.3 |
Interest Rate Cash Flow Hedge Liability at Fair Value | 0 | 0.1 |
Foreign Currency Cash Flow Hedge Liability at Fair Value | 4.5 | 4 |
Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign Currency Cash Flow Hedge Asset at Fair Value | 1.6 | 2.8 |
Foreign Currency Cash Flow Hedge Liability at Fair Value | 3.5 | 4.3 |
Designated as Hedging Instrument [Member] | Other Noncurrent Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Interest Rate Cash Flow Hedge Asset at Fair Value | 2.9 | 0.7 |
Foreign Currency Cash Flow Hedge Asset at Fair Value | 0.8 | 3.9 |
Interest Rate Cash Flow Hedge Liability at Fair Value | 0 | 0 |
Foreign Currency Cash Flow Hedge Liability at Fair Value | 0.3 | 1.3 |
Designated as Hedging Instrument [Member] | Other Noncurrent Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Interest Rate Cash Flow Hedge Asset at Fair Value | 0 | 0 |
Foreign Currency Cash Flow Hedge Asset at Fair Value | 0.9 | 0.5 |
Interest Rate Cash Flow Hedge Liability at Fair Value | 0 | 0.1 |
Foreign Currency Cash Flow Hedge Liability at Fair Value | 13.5 | 7.7 |
Not Designated as Hedging Instrument [Member] | Prepaid expenses and other [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Interest Rate Cash Flow Hedge Asset at Fair Value | 0.5 | 0.4 |
Foreign Currency Cash Flow Hedge Asset at Fair Value | 2.5 | 0.8 |
Interest Rate Cash Flow Hedge Liability at Fair Value | 0 | 0 |
Foreign Currency Cash Flow Hedge Liability at Fair Value | 0.1 | 0.4 |
Not Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign Currency Cash Flow Hedge Asset at Fair Value | 0.8 | 0.1 |
Foreign Currency Cash Flow Hedge Liability at Fair Value | 1 | 0.8 |
Not Designated as Hedging Instrument [Member] | Other Noncurrent Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign Currency Cash Flow Hedge Asset at Fair Value | 0.1 | 0 |
Not Designated as Hedging Instrument [Member] | Other Noncurrent Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Interest Rate Cash Flow Hedge Asset at Fair Value | 0 | 0 |
Interest Rate Cash Flow Hedge Liability at Fair Value | 0 | 0.1 |
Foreign Currency Cash Flow Hedge Liability at Fair Value | $ 0 | $ 0 |
Financial Instruments and Der47
Financial Instruments and Derivative Financial Instruments (Offsetting) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset by Counterparty | $ 8.5 | $ 8.3 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | (4.7) | (7.5) |
Derivative Assets | 3.8 | 0.8 |
Derivative Liability, Fair Value, Gross Liability by Counterparty | 14.7 | 9.6 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | (4.7) | (7.5) |
Derivative Liabilities | 10 | 2.1 |
Cash Flow Hedging [Member] | Interest Rate Contract [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset by Counterparty | 3.8 | 1 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 0 | (0.2) |
Derivative Assets | 3.8 | 0.8 |
Derivative Liability, Fair Value, Gross Liability by Counterparty | 0 | 0.2 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | (0.2) |
Derivative Liabilities | 0 | 0 |
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset by Counterparty | 4.7 | 7.3 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | (4.7) | (7.3) |
Derivative Assets | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability by Counterparty | 14.7 | 9.4 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | (4.7) | (7.3) |
Derivative Liabilities | $ 10 | $ 2.1 |
Financial Instruments and Der48
Financial Instruments and Derivative Financial Instruments (Income Statement) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Interest Rate Contract [Member] | Interest Expense [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Description of Location of Gain (Loss) on Interest Rate Derivative on Income Statement | Interest expense | |||
Foreign Exchange Contract [Member] | Cost of Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Description of Location of Gain (Loss) on Foreign Currency Derivative in Financial Statements | Cost of sales | |||
Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | $ (23.4) | $ 6.3 | $ (5.8) | $ 13.3 |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 3 | (1.3) | 2 | (1.5) |
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | 0 | 0 | 0 | 0 |
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (1.5) | 2.2 | (0.9) | 1.6 |
Cash Flow Hedging [Member] | Interest Rate Contract [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 0.7 | (0.4) | 2.7 | (0.4) |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (0.1) | 0 | (0.1) | 0 |
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | 0 | 0 | 0 | 0 |
Gain (Loss) on Interest Rate Derivative Instruments Not Designated as Hedging Instruments | 0 | (0.2) | $ 0.3 | (0.1) |
Cash Flow Hedging [Member] | Interest Rate Contract [Member] | Interest Expense [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Description of Location of Gain (Loss) on Interest Rate Derivative on Income Statement | Interest expense | |||
Cash Flow Hedging [Member] | Interest Rate Contract [Member] | Other Expense [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Description of Location of Gain (Loss) on Interest Rate Derivative on Income Statement | Other | |||
Description of Location of Gain (Loss) on Interest Rate Derivative Instruments Not Designated as Hedging Instruments in Financial Statements | Other | |||
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | (24.1) | 6.7 | $ (8.5) | 13.7 |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 3.1 | (1.3) | 2.1 | (1.5) |
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | 0 | 0 | 0 | 0 |
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $ (1.5) | $ 2.4 | $ (1.2) | $ 1.7 |
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | Cost of Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Description of Location of Gain (Loss) on Foreign Currency Derivative in Financial Statements | Cost of sales | |||
Description of Location of Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments in Financial Statements | Cost of sales |
Financial Instruments and Der49
Financial Instruments and Derivative Financial Instruments (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | ||
Long-term Debt | $ 257.3 | $ 270.9 |
Long-term Debt, Fair Value | $ 257.8 | 272.2 |
Objectives for Using Net Investment Hedging Instruments | The Company periodically enters into forward foreign currency contracts that are designated as net investment hedges of the Company's net investment in its foreign subsidiaries. For derivative instruments that are designated and qualified as a hedge of a net investment in foreign currency, the gain or loss is reported in other comprehensive income as part of the cumulative translation adjustment to the extent it is effective. The Company utilizes the forward-rate method of assessing hedge effectiveness. Any ineffective portion of net investment hedges would be recognized in the unaudited condensed consolidated statement of operations in the same period as the change. | |
Discussion of Objectives for Using Interest Rate Derivative Instruments | The Company uses interest rate swap agreements to partially reduce risks related to floating rate financing agreements that are subject to changes in the market rate of interest. Terms of the interest rate swap agreements require the Company to receive a variable interest rate and pay a fixed interest rate. The Company's interest rate swap agreements and its variable rate financings are predominately based upon the one or three-month LIBOR. Changes in the fair value of interest rate swap agreements that are effective as hedges are recorded in OCI. Deferred gains or losses are reclassified from OCI to the unaudited condensed consolidated statements of operations in the same period as the gains or losses from the underlying transactions are recorded and are generally recognized in interest expense. The ineffective portion of derivatives that are classified as hedges is immediately recognized in earnings and included on the line "Other" in the "Other (income) expense" section of the unaudited condensed consolidated statements of operations. | |
Interest Rate Derivatives, at Fair Value, Net | $ (3.8) | (0.8) |
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | $ (0.4) | |
Cross Currency Interest Rate Contract [Member] | ||
Derivative [Line Items] | ||
Discussion of Objectives for Using Foreign Currency Derivative Instruments | The Company uses cross-currency swaps, which hedge the variability of expected future cash flows that are attributable to foreign currency risk of certain intercompany loans. These agreements include initial and final exchanges of principal and associated interest payments from fixed euro denominated to fixed U.S.-denominated amounts. Changes in the fair value of cross-currency swaps that are effective as hedges are recorded in OCI. Deferred gains or losses are reclassified from OCI to the unaudited condensed consolidated statements of operations in the same period as the gains or losses from the underlying transactions are recorded and are generally recognized in other (income) expense and interest expense. The ineffective portion of derivatives that are classified as hedges is immediately recognized in earnings and is also generally recognized in other (income) expense. | |
Foreign Exchange Contract [Member] | ||
Derivative [Line Items] | ||
Discussion of Objectives for Using Foreign Currency Derivative Instruments | The Company uses forward foreign currency exchange contracts to partially reduce risks related to transactions denominated in foreign currencies. These contracts hedge firm commitments and forecasted transactions relating to cash flows associated with sales and purchases denominated in non-functional currencies. The Company offsets fair value amounts related to foreign currency exchange contracts executed with the same counterparty. Changes in the fair value of forward foreign currency exchange contracts that are effective as hedges are recorded in OCI. Deferred gains or losses are reclassified from OCI to the unaudited condensed consolidated statements of operations in the same period as the gains or losses from the underlying transactions are recorded and are generally recognized in cost of sales. The ineffective portion of derivatives that are classified as hedges is immediately recognized in earnings and is also generally recognized in cost of sales. | |
Derivative, Notional Amount | $ 1,082 | 860.2 |
Derivative, Fair Value, Net | (10) | (2.1) |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | (0.2) | |
Not Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 100 | $ 100 |
Derivative, Average Fixed Interest Rate | 1.47% | 1.47% |
Maximum Length of Time Hedged in Interest Rate Cash Flow Hedge | Extending to December 2018 | |
Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Short [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 56.5 | $ 56.5 |
Derivative, Average Fixed Interest Rate | 1.94% | 1.94% |
Maximum Length of Time Hedged in Interest Rate Cash Flow Hedge | Extending to November 2022 | |
Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Long [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 83.5 | $ 83.5 |
Derivative, Average Fixed Interest Rate | 2.20% | 2.20% |
Maximum Length of Time Hedged in Interest Rate Cash Flow Hedge | December 2018 to May 2023 | |
Secured Debt [Member] | ||
Derivative [Line Items] | ||
Long-term Debt, Gross | $ 200 |
Retirement Benefit Plans (Detai
Retirement Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Americas [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Interest cost | $ 0.7 | $ 0.7 | $ 1.3 | $ 1.4 | |
Expected return on plan assets | (1.3) | (1.3) | (2.5) | (2.5) | |
Settlement loss | (0.7) | 0 | (0.7) | 0 | |
Amortization of actuarial loss | 0.4 | 0.5 | 0.9 | 0.9 | |
Amortization of prior service credit | (0.1) | (0.1) | (0.2) | (0.2) | |
Total | 0.4 | (0.2) | $ 0.2 | (0.4) | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 4.05% | 3.40% | |||
Defined Benefit Plan, Change in Funded (Unfunded) Status of Plan Due to Remeasurement | 0.3 | $ 0.3 | |||
Other Comprehensive Income (Loss), Finalization of Pension and Other Postretirement Benefit Plan Valuation, before Tax | 1 | ||||
Other Comprehensive Income (Loss), Finalization of Pension and Other Postretirement Benefit Plan Valuation, Net of Tax | 0.7 | ||||
Foreign Plan [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Service cost | 0 | 0 | 0.1 | 0.1 | |
Interest cost | 1.1 | 1 | 2.1 | 2 | |
Expected return on plan assets | (2.7) | (2.3) | (5.4) | (4.5) | |
Amortization of actuarial loss | 0.5 | 0.7 | 1 | 1.3 | |
Total | $ (1.1) | $ (0.6) | $ (2.2) | $ (1.1) |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Inventory, Finished Goods, Net of Reserves | $ 223.6 | $ 193.7 |
Inventory, Work in Process, Net of Reserves | 23.5 | 19.9 |
Inventory, Raw Materials and Purchased Parts, Net of Reserves | 265.6 | 239 |
Total manufactured inventories | 512.7 | 452.6 |
LIFO reserve | (45.6) | (40.7) |
Total inventory | $ 467.1 | $ 411.9 |
Percentage of LIFO Inventory | 50.00% | 49.00% |
Current and Long-Term Financi52
Current and Long-Term Financing (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Debt Instrument [Line Items] | ||
Payments of Financing Costs | $ 0.6 | $ 5 |
Base Rate [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.25% | |
Eurodollar [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.25% |
Product Warranties (Details)
Product Warranties (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Product Liability Contingency [Line Items] | ||
Product Warranty Accrual | $ 53.3 | $ 51 |
Product Warranties Issued | 18 | |
Product Warranty Accrual, Preexisting, Increase (Decrease) | 1.3 | |
Product Warranties Payments | (16.4) | |
Product Warranties Currency Translation, Increase (Decrease) | $ (0.6) | |
Standard warranty [Member] | ||
Product Liability Contingency [Line Items] | ||
Standard Product Warranty Description | twelve months or 1,000 to 2,000 hours | |
Certain Truck Series Standard Warranty [Member] | ||
Product Liability Contingency [Line Items] | ||
Standard Product Warranty Description | one to two years or 2,000 or 4,000 hours | |
Additional Component Standard Warranty [Member] | ||
Product Liability Contingency [Line Items] | ||
Standard Product Warranty Description | two to three years or 4,000 to 6,000 hours | |
Extended warranty [Member] | ||
Product Liability Contingency [Line Items] | ||
Extended Product Warranty Description | two to five years or up to 2,400 to 10,000 hours |
Guarantees (Details)
Guarantees (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Guarantor Obligations [Line Items] | ||
Guarantor Obligations, Term | Terms of the third-party financing arrangements for which the Company is providing recourse or repurchase obligations generally range from one to five years. | |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 173.7 | $ 203.5 |
Guarantor Obligations, Collateral | $ 232.7 | |
Percentage of loan losses guaranteed | 7.50% | |
Loan losses guaranteed | $ 13.1 | |
Net guarantee of outstanding debt | 144 | |
Guarantor Obligations, Related Party Disclosures | 142.2 | |
Guarantees, Fair Value Disclosure | 352.3 | |
Property Lease Guarantee [Member] | ||
Guarantor Obligations [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | 42.8 | |
Financial Guarantee [Member] | ||
Guarantor Obligations [Line Items] | ||
Guarantor Obligations, Related Party Disclosures | 208.3 | |
Receivable [Domain] | ||
Guarantor Obligations [Line Items] | ||
Guarantor Obligations, Collateral | 277.9 | |
HYGFS [Member] | ||
Guarantor Obligations [Line Items] | ||
Net guarantee of outstanding debt | $ 112.5 | |
Percentage of loans guaranteed to joint venture | 20.00% | |
Notes Payable, Related Party Due to Parent | $ 1,200 | |
Contractual Obligation | 230.8 | |
Guarantees, Fair Value Disclosure | $ 320.8 |
Equity Investments (Details)
Equity Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Revenues | $ 105 | $ 92.9 | $ 205.5 | $ 178 | |
Gross profit | 31.4 | 28.1 | 63.3 | 55.1 | |
Income from continuing operations | 8.5 | 6.7 | 18.7 | 13.2 | |
Net income | 8.5 | $ 6.7 | 18.7 | 13.2 | |
Equity Method Investments | 63.3 | 63.3 | $ 81.9 | ||
Dividends from unconsolidated affiliates | 22.2 | 2.8 | |||
Available-for-sale Securities, Noncurrent | 6.2 | 6.2 | |||
Available-for-sale Equity Securities, Gross Unrealized Gain | $ 2.6 | $ 3 | |||
HYGFS [Member] | |||||
Equity Method Investment, Ownership Percentage | 20.00% | 20.00% | |||
Equity Method Investments | $ 17.8 | $ 17.8 | 35.2 | ||
Dividends from unconsolidated affiliates | $ 20.1 | 2.4 | |||
SN [Member] | |||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | |||
Equity Method Investments | $ 38.9 | $ 38.9 | 36.8 | ||
Dividends from unconsolidated affiliates | 2.1 | $ 0.4 | |||
Bolzoni [Member] | |||||
Equity Method Investments | $ 0.4 | $ 0.4 | $ 0.5 |
Acquisitions Acquisitions (Deta
Acquisitions Acquisitions (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 01, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | $ 15.7 | |||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest | 11.7 | |||||
Payments to Acquire Businesses, Gross | $ 90 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 16.8 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 18.5 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 27 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 18.7 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 0.6 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 97.3 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | 35.8 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities | 5.7 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other | 17.1 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 58.6 | |||||
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value | 27 | |||||
Business Acquisition, Expected Percentage of Voting Interests To Be Acquired | 75.00% | 75.00% | ||||
Business Combination, Consideration Transferred | $ 74.3 | |||||
Business Acquisition, Name of Entity to be Acquired Entity in a Proposed Transaction | Zhejiang Maximal Forklift Co., Ltd. (“Maximal”) | |||||
Business Acquisition, Description of Entity To Be Acquired | Maximal is a manufacturer of utility and standard lift trucks and specialized materials handling equipment founded in 2006 in the Hangzhou, Zhejiang Province of China | |||||
Business Combination, Description of Proposed Transaction | Under the terms of the ETA, upon the closing, the Company paid $81.0 million to a jointly-controlled bank account under the name of KNSN, and KNSN is only allowed to use such amount to repay intercompany indebtedness owed by KNSN to Maximal and to remove existing related-party guarantees provided by Maximal. Any balance amount remaining after fulfilling the specified purposes will belong to KNSN. In addition, upon the closing, the Company paid $9.0 million to an escrow account, which will be released to KNSN in two installments. The first installment of $2.7 million will be released on the second anniversary of the closing and the second installment of $6.3 million will be released on the third anniversary of the closing subject to a number of conditions. KNSN is obligated to indemnify the Company from and against any breach of representations and warranties and any liabilities and losses associated with the pre-closing operations of Maximal. | |||||
Business Combination, Description of Proposed Contingent Consideration Arrangements | In addition, the Company signed an incentive agreement with Mr. Jin Hong Lu, a key member of senior management of Maximal and the majority shareholder of KNSN. Pursuant to this agreement, the Company will pay $10.0 million to Mr. Lu by the third anniversary of the closing under the ETA, provided that Mr. Lu, his immediate family members and any affiliates fully comply with the non-competition, conflict of interest, non-solicitation, and compliance covenants set forth in the agreement. Pursuant to the terms of the ETA, Mr. Lu signed and issued a Guarantee and Undertaking Letter for the benefit of the Company, guaranteeing KNSN’s performance of all terms under the ETA. In the case of any breach of the ETA by KNSN, Mr. Lu shall be liable and shall indemnify the Company against any losses arising from such breach in accordance with the ETA and applicable laws. | |||||
Goodwill | $ 133.3 | $ 133.3 | 78.3 | $ 59.1 | ||
Business Combination, Segment Reporting, Assignment of Goodwill Not Complete | JAPIC segment | |||||
Business Combination, Separately Recognized Transactions, Additional Disclosures, Acquisition Cost Expensed | $ 1.9 | $ 0.5 | $ 2.4 | $ 1.4 | ||
Business Combination, Provisional Information, Initial Accounting Incomplete, Reasons | Given the timing and complexity of the Maximal acquisition, the allocation of the purchase price is preliminary and will likely change in future periods, perhaps significantly as fair value estimates of the assets acquired and liabilities assumed are refined during the measurement period. The Company is in the process of obtaining a third-party valuation of the assets acquired and liabilities assumed; thus the provisional measurements are subject to change. In addition, the cash consideration paid will be finalized with KNSN and is subject to customary working capital, cash and debt adjustments. The Company will complete the purchase price allocation no later than the second quarter of 2019. | |||||
Distribution Rights [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 9.7 | |||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life In Years | 20 | |||||
Patents [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 5.6 | |||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life In Years | 7 | |||||
Trademarks [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 3.4 | |||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life In Years | 20 |
Uncategorized Items - hy-201806
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 1,100,000 |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (2,800,000) |
Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 1,100,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 3,900,000 |