Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 25, 2016 | |
Document and Entity Information | ||
Entity Registrant Name | John Bean Technologies Corporation | |
Entity Central Index Key | 1,433,660 | |
Trading Symbol | jbt | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Common Stock, Shares Outstanding | 29,156,847 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Statement [Abstract] | ||||
Revenue | $ 349.6 | $ 273.3 | $ 945.5 | $ 752.9 |
Operating expenses: | ||||
Cost of sales | 255.5 | 197.1 | 678.8 | 538 |
Selling, general and administrative expense | 56.5 | 48.1 | 168.4 | 142.1 |
Research and development expense | 6.3 | 5 | 17.7 | 13 |
Restructuring expense | 0.3 | 0 | 9.4 | 0 |
Other expense, net | 1.5 | 2 | 2.1 | 1.8 |
Operating income | 29.5 | 21.1 | 69.1 | 58 |
Interest income | 0.3 | 0.2 | 1 | 0.7 |
Interest expense | (3.1) | (1.7) | (8) | (6) |
Income from continuing operations before income taxes | 26.7 | 19.6 | 62.1 | 52.7 |
Provision for income taxes | 6.1 | 6.9 | 17.5 | 17.6 |
Income from continuing operations | 20.6 | 12.7 | 44.6 | 35.1 |
Loss from discontinued operations, net | 0 | (0.1) | (0.1) | (0.1) |
Net income | $ 20.6 | $ 12.6 | $ 44.5 | $ 35 |
Basic earnings per share: | ||||
Income from continuing operations (in dollars per share) | $ 0.70 | $ 0.43 | $ 1.52 | $ 1.19 |
Loss from discontinued operations (in dollars per share) | 0 | 0 | (0.01) | 0 |
Net income (in dollars per share) | 0.70 | 0.43 | 1.51 | 1.19 |
Diluted earnings per share: | ||||
Income from continuing operations (in dollars per share) | 0.69 | 0.43 | 1.50 | 1.18 |
Loss from discontinued operations (in dollars per share) | 0 | (0.01) | (0.01) | (0.01) |
Net income (in dollars per share) | 0.69 | 0.42 | 1.49 | 1.17 |
Cash dividends declared per share (in dollars per share) | $ 0.1 | $ 0.09 | $ 0.3 | $ 0.27 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 20.6 | $ 12.6 | $ 44.5 | $ 35 |
Other comprehensive income (loss) | ||||
Foreign currency translation adjustments | (1.1) | (9.6) | 2.8 | (19.6) |
Pension and other postretirement benefits adjustments, net of tax of ($0.4) and ($1.0) for 2016, and $0.5 and $0.8 for 2015 | 0.6 | 1.4 | 1.8 | 3 |
Derivatives designated as hedges, net of tax of ($0.5) and $1.5 for 2016; ($1.2) for 2015 | 0.8 | (1.8) | (2.4) | (1.8) |
Other comprehensive income (loss) | 0.3 | (10) | 2.2 | (18.4) |
Comprehensive income | $ 20.9 | $ 2.6 | $ 46.7 | $ 16.6 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Pension and other postretirement benefits adjustments, tax | $ (0.4) | $ 0.5 | $ (1) | $ 0.8 |
Derivatives designated as hedges, tax | $ (0.5) | $ (1.2) | $ 1.5 | $ (1.2) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 47.9 | $ 37.2 |
Trade receivables, net of allowances of $2.1 and $2.1, respectively | 240.9 | 212.5 |
Inventories, net | 143.4 | 104.9 |
Other current assets | 40.2 | 41.6 |
Total current assets | 472.4 | 396.2 |
Property, plant and equipment, net of accumulated depreciation of $240.8 and $223.8, respectively | 187.6 | 181.1 |
Goodwill | 158 | 152.5 |
Intangible assets, net | 77.3 | 86.8 |
Deferred income taxes | 35.1 | 32 |
Other assets | 30.3 | 27.5 |
Total Assets | 960.7 | 876.1 |
Current Liabilities: | ||
Short-term debt and current portion of long-term debt | 5.4 | 2.2 |
Accounts payable, trade and other | 120.7 | 110.7 |
Advance and progress payments | 127.2 | 115.8 |
Other current liabilities | 137.2 | 124.4 |
Total current liabilities | 390.5 | 353.1 |
Long-term debt, less current portion | 300.2 | 280.6 |
Accrued pension and other postretirement benefits, less current portion | 75.3 | 90.7 |
Other liabilities | 25.6 | 22 |
Commitments and contingencies (Note 11) | ||
Stockholders’ Equity: | ||
Preferred stock, $0.01 par value; 20,000,000 shares authorized; no shares issued | 0 | 0 |
Common stock, $0.01 par value; 120,000,000 shares authorized; September 30, 2016: 29,316,041 issued and 29,156,847 outstanding; December 31, 2015: 29,316,041 issued and 29,147,380 outstanding | 0.3 | 0.3 |
Common stock held in treasury, at cost; September 30, 2016: 159,194 shares; December 31, 2015: 168,661 shares | (7.2) | (6.1) |
Additional paid-in capital | 74.4 | 71.6 |
Retained earnings | 246.6 | 211.1 |
Accumulated other comprehensive loss | (145) | (147.2) |
Total stockholders’ equity | 169.1 | 129.7 |
Total Liabilities and Stockholders’ Equity | $ 960.7 | $ 876.1 |
Condensed Consolidated Balance6
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Allowances, trade receivables | $ 2.1 | $ 2.1 |
Property, plant and equipment, accumulated depreciation | $ 240.8 | $ 223.8 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, shares issues (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 120,000,000 | 120,000,000 |
Common stock, shares issued (in shares) | 29,316,041 | 29,316,041 |
Common stock, shares outstanding (in shares) | 29,156,847 | 29,147,380 |
Common stock held in treasury (in shares) | 159,194 | 168,661 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows provided by operating activities: | ||
Net income | $ 44.5 | $ 35 |
Loss from discontinued operations, net | 0.1 | 0.1 |
Income from continuing operations | 44.6 | 35.1 |
Adjustments to reconcile income from continuing operations to cash provided by continuing operating activities: | ||
Depreciation and amortization | 27.2 | 20.9 |
Stock-based compensation | 7.1 | 5.2 |
Other | 0.9 | 1.8 |
Changes in operating assets and liabilities: | ||
Trade receivables, net | (27) | (0.5) |
Inventories | (37.9) | (17.2) |
Accounts payable, trade and other | 10.3 | 14.2 |
Advance and progress payments | 10.3 | 18.9 |
Other assets and liabilities, net | (8.6) | (30.5) |
Cash provided by continuing operating activities | 26.9 | 47.9 |
Cash required by discontinued operating activities | (0.1) | (0.1) |
Cash provided by operating activities | 26.8 | 47.8 |
Cash flows required by investing activities: | ||
Acquisitions, net of cash acquired | (3.2) | (50.9) |
Capital expenditures | (24.9) | (26.5) |
Proceeds from disposal of assets | 1.9 | 0.9 |
Proceeds from property available for sale | 0 | 2 |
Cash required by investing activities | (26.2) | (74.5) |
Cash flows provided by financing activities: | ||
Net proceeds (payments) on short-term debt | 3.3 | (1.6) |
Cash provided by refinancing of credit facility | 0 | 183.7 |
Cash payments to settle existing credit facility | 0 | (183.7) |
Cash payments to settle private placement debt | 0 | (75) |
Net proceeds (payments) on credit facilities | 20.7 | 134.1 |
Repayment of long-term debt | (1.6) | (0.9) |
Excess tax benefits | 1.5 | 2.1 |
Tax withholdings on stock-based compensation awards | (2.6) | (5.5) |
Purchase of treasury stock | (4.4) | (7.7) |
Dividends | (8.9) | (8.3) |
Cash provided by financing activities | 8 | 37.2 |
Effect of foreign exchange rate changes on cash and cash equivalents | 2.1 | (5.9) |
Increase in cash and cash equivalents | 10.7 | 4.6 |
Cash and cash equivalents, beginning of period | 37.2 | 33.3 |
Cash and cash equivalents, end of period | $ 47.9 | $ 37.9 |
Description of Business and Bas
Description of Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Description of Business John Bean Technologies Corporation and its majority-owned consolidated subsidiaries (the “Company,” “JBT,” “our,” “us,” or “we”) provide global technology solutions to high-value segments of the food & beverage and air transportation industries. We design, manufacture, test and service technologically sophisticated systems and products for customers through our JBT FoodTech and JBT AeroTech segments. We have manufacturing operations worldwide and are strategically located to facilitate delivery of our products and services to our customers. Basis of Presentation In accordance with Securities and Exchange Commission (“SEC”) rules for interim periods, the accompanying unaudited condensed consolidated financial statements (the “interim financial statements”) do not include all of the information and notes for complete financial statements as required by accounting principles generally accepted in the United States of America (“U.S. GAAP”). As such, the accompanying interim financial statements should be read in conjunction with the JBT Annual Report on Form 10-K for the year ended December 31, 2015 , which provides a more complete understanding of the Company’s accounting policies, financial position, operating results, business, properties, and other matters. The year-end condensed consolidated balance sheet was derived from audited financial statements. In the opinion of management, the interim financial statements reflect all normal recurring adjustments necessary for a fair presentation of our financial condition and operating results as of and for the periods presented. Revenue, expenses, assets and liabilities can vary during each quarter of the year. Therefore, the interim results and trends in the interim financial statements may not be representative of those for the full year or any future period. We have reclassified the prior year amortization expense of intangible assets not considered contract-related from cost of sales to selling, general and administrative expense to conform with current year presentation. Use of estimates Preparation of financial statements that follow U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Recently adopted accounting standards In April 2015, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30) - Simplifying Presentation of Debt Issuance Costs. The core principle of the ASU is that an entity should present debt issuance costs as a direct deduction from the face amount of that debt in the balance sheet similar to the manner in which a debt discount or premium is presented, and not reflected as a deferred charge or deferred credit. Subsequent to the issuance of ASU 2015-03 the SEC staff made an announcement regarding the presentation of debt issuance costs associated with line-of-credit arrangements, which was codified by the FASB in ASU 2015-15. This guidance, which clarifies the exclusion of line-of-credit arrangements from the scope of ASU 2015-03, is effective upon adoption of ASU 2015-03. This guidance became effective for us as of January 1, 2016 and there was no effect on our consolidated financial statements and related disclosures. In April 2015, the FASB issued ASU No. 2015-05, Internal-Use Software (Subtopic 350-40) - Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. The ASU applies to cloud computing arrangements including software as a service, platform as a service, infrastructure as a service, and other similar hosting arrangements, and was issued to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. The ASU provides guidance about whether the arrangement includes a software license. The core principle of the ASU is that if a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance will not change U.S. GAAP for a customer’s accounting for service contracts. This guidance became effective for us as of January 1, 2016 and there was no effect on our consolidated financial statements and related disclosures. In September 2015, the FASB issued ASU No. 2015-16, Simplifying the Accounting for Measurement-Period Adjustments. The ASU eliminates the requirement for an acquirer to retrospectively adjust the financial statements for measurement-period adjustments that occur in periods after a business combination is consummated. The core principle of the ASU is that entities will be required to recognize the cumulative impact of a measurement period adjustment (including the impact on prior periods) in the reporting period in which the adjustment is identified. This guidance became effective for us as of January 1, 2016 and we determined the guidance did not have a material impact on our consolidated financial statements and related disclosures. Recently issued accounting standards not yet adopted In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) . The new standard will replace most existing revenue recognition guidance in U.S. GAAP. The core principle of the ASU requires companies to reevaluate when revenue is recorded on a transaction based upon newly defined criteria, either at a point in time or over time as goods or services are delivered. The ASU requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and estimates, and changes in those estimates. In early 2016, the FASB issued additional guidance: ASU No. 2016-10, 2016-11 and 2016-12. These updates provide further guidance and clarification on specific items within the previously issued ASU. The new standard becomes effective for us as of January 1, 2018, with the option to early adopt the standard for annual periods beginning on or after December 15, 2016, and allows for both retrospective and modified-retrospective methods of adoption. The Company does not plan to early adopt the standard. We have preliminarily concluded that we will adopt this Topic 606 via the retrospective transition method, taking advantage of the allowed practical expedients, and restating our consolidated financial statements for 2016 and 2017. We are substantially complete with our gap assessment and have determined that we will qualify for over-time recognition for a large portion of our manufactured equipment as well as refurbishments. To the extent we begin recognizing revenue over time in the future, we believe this will result in an acceleration of revenue as compared to our current revenue recognition methodology of recognizing revenue at a point in time. We are continuing to quantify the impact of this change, and are in the process of finalizing our implementation plan. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330) – Simplifying the Measurement of Inventory . The core principle of the ASU is that entities that historically used the lower of cost or market in the subsequent measurement of inventory will instead be required to measure inventory at the lower of cost and net realizable value. The guidance will not change U.S. GAAP for inventory measured using LIFO or the retail inventory method. The ASU is effective for annual reporting periods, including interim periods within those annual periods, beginning after December 15, 2016. The Company anticipates the adoption in the effective period and we are currently evaluating the effect, if any, that the ASU will have on our consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU No. 2016-02, Leases . The new standard will replace most existing lease guidance in U.S. GAAP. The core principle of the ASU is that lessees are required to report a right to use asset and a lease payment obligation on the balance sheet but recognize expenses on their income statements in a manner similar to today’s accounting, and for lessors the guidance remains substantially similar to current U.S. GAAP. The ASU is effective for annual reporting periods, including interim periods within those annual periods, beginning after December 15, 2018. However, early adoption is permitted. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. We have not yet evaluated and cannot determine the impact this standard will have on our consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-09, Stock Compensation (Topic 718) – Improvements to Employee Share-Based Payment Accounting . The new guidance was developed as part of the FASB’s simplification initiative. The core principle of the ASU requires income tax effects of awards to be recognized in the income statement when the awards vest or are settled. It allows an employer to repurchase more of an employee’s shares than it can today for tax withholding purposes without triggering liability accounting, and allows an employer to make a policy election to account for forfeitures as they occur. The ASU is effective for annual reporting periods, including interim periods within those annual periods, beginning after December 15, 2016. However, early adoption is permitted. The Company anticipates the adoption in the effective period. While we are still evaluating the impact, we do expect that 278,316 awards will vest in January of 2017, and at the September 30, 2016 stock price we anticipate approximately $5.0 million in incremental tax benefit to be reported in earnings. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230) . The new guidance is intended to reduce the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The core principle of the ASU requires the classification of eight specific cash flow issues identified under ASC 230 to be presented as either financing, investing or operating, or some combination thereof, depending upon the nature of the issue. The ASU is effective for annual reporting periods, including interim periods within those annual periods, beginning after December 15, 2017. However, early adoption is permitted. Entities are required to use a retrospective transition approach for all of the issues identified to each period presented. We are currently evaluating the effect, if any, that the ASU will have on our consolidated financial statements and related disclosures. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS Consistent with our growth strategy, we completed two acquisitions during 2015 focused on strengthening our Protein and Liquid Foods portfolios. A&B Process Systems On October 1, 2015, John Bean Technologies Corporation acquired the shares of A&B Process Systems (“A&B”), located in Stratford, WI, for $103.0 million , including a $3.0 million earnout and a working capital adjustment of $0.1 million . We have determined that the goodwill amount that is deductible for tax purposes is $60.3 million . During the quarter ended March 31, 2016, we refined our estimates of the customer relationship by ( $0.9 million ), trademark by ( $0.4 million ), technological know-how for skidded systems by ( $0.2 million ), backlog by ( $0.1 million ), and noncompete agreements by ( $0.1 million ). The impact of these adjustments was reflected as an increase in goodwill of $1.8 million , and resulted in an immaterial impact to the consolidated statement of income. No other refinements of the valuation occurred during the quarters ended June 30, 2016 or September 30, 2016. The following table summarizes the fair values recorded for the assets acquired and liabilities assumed for A&B: (In millions) Assets: Trade receivables $ 15.7 Inventories 1.0 Prepaid expenses 0.6 Costs in excess of billings on projects in progress 5.1 Property, plant and equipment 18.1 Other assets 0.2 Intangible assets: Backlog 1.2 Customer relationships 14.6 Non-compete agreements 0.9 Trademark 3.1 Technological know-how - skidded systems 3.9 Technological know-how - tanks and vessels 1.3 Total assets 65.7 Liabilities: Accounts payable 6.1 Billings in excess of costs on projects in progress 6.6 Other liabilities 3.3 Total liabilities 16.0 Total cash consideration paid and accrued 103.0 Goodwill $ 53.3 The customer relationships and trademark will be amortized over their estimated useful lives of eight and fourteen years, respectively. Technological know-how for skidded systems and tanks and vessels will be amortized over their terms of six and nine years, respectively. The non-compete agreements will be amortized over the contractual life of five years, and backlog was amortized over six months, consistent with the completion of the backlog. The A&B purchase agreement includes a payment due to the sellers for $3 million of consideration, contingent upon exceeding an earnings target for the period from May 1, 2015 through April 30, 2016. The contractual obligation associated with the contingent earnout provision recognized on the acquisition date was $3.0 million , which is included in Other current liabilities on the Condensed Consolidated Balance Sheet. Had the earnings target not been achieved, the payment would have been $0 . However, the agreed upon financial targets were met and the Company expects to make the $3.0 million payment to the sellers in the fourth quarter of 2016. Stork Food & Dairy Systems B.V. On July 31, 2015, John Bean Technologies Corporation and its wholly-owned subsidiary John Bean Technologies Europe B.V. acquired the shares of Stork Food & Dairy Systems, B.V. (“SFDS”), located in Amsterdam, The Netherlands for $50.7 million , which is net of cash acquired of $1.1 million . During the quarter ended June 30, 2016, we finalized our estimates of the customer relationships and patents, resulting in a reduction in value of $2.0 million and $1.0 million , respectively. We also increased other liabilities by $1.1 million . These changes resulted in an increase to deferred tax assets of $0.5 million and a decrease to deferred tax liabilities $0.6 million . The impact of these adjustments was reflected as an increase in goodwill of $3.0 million and resulted in an immaterial impact to the consolidated statement of income. No refinements of the valuation occurred during the quarter ended March 31, 2016. The following table summarizes the fair values recorded for the assets acquired and liabilities assumed for SFDS: (In millions) Assets: Cash $ 1.1 Trade receivables 10.0 Other receivables 2.5 Inventories 4.8 Costs in excess of billings on projects in progress 7.8 Property, plant and equipment 9.8 Intangible assets: Customer relationships 2.1 Patents 2.9 Tradename 0.2 Deferred income taxes 1.6 Total assets 42.8 Liabilities: Accounts payable 9.2 Billings in excess of costs on projects in progress 7.6 Deferred income taxes 2.7 Other liabilities 11.3 Total liabilities 30.8 Total purchase price 51.8 Goodwill $ 39.8 We also revised the estimated useful life and amortization period associated with customer relationships from fifteen years to eight years during the quarter ended June 30, 2016. Patents and the tradename will continue to be amortized over their estimated useful lives of seven years and seventeen months, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | GOODWILL AND INTANGIBLE ASSETS The changes in the carrying amount of goodwill by business segment were as follows: (In millions) JBT FoodTech JBT AeroTech Total Balance as of December 31, 2015 $ 144.8 $ 7.7 $ 152.5 Acquisitions 5.5 — 5.5 Balance as of September 30, 2016 $ 150.3 $ 7.7 $ 158.0 Intangible assets consisted of the following: September 30, 2016 December 31, 2015 (In millions) Gross carrying amount Accumulated amortization Gross carrying amount Accumulated amortization Customer relationships $ 68.4 $ 19.6 $ 70.8 $ 15.9 Patents and acquired technology 35.7 24.3 35.4 23.5 Trademarks and tradenames 19.0 8.4 19.5 7.8 Other 13.9 7.4 13.8 5.5 Total intangible assets $ 137.0 $ 59.7 $ 139.5 $ 52.7 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Inventories consisted of the following: (In millions) September 30, 2016 December 31, 2015 Raw materials $ 65.9 $ 55.0 Work in process 63.4 36.8 Finished goods 83.1 81.8 Gross inventories before LIFO reserves and valuation adjustments 212.4 173.6 LIFO reserves and valuation adjustments (69.0 ) (68.7 ) Inventories, net $ 143.4 $ 104.9 |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 9 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits | PENSION AND OTHER POSTRETIREMENT BENEFITS Components of net periodic benefit cost were as follows: Pension Benefits Other Postretirement Benefits Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended (In millions) 2016 2015 2016 2015 2016 2015 2016 2015 Service cost $ 0.3 $ 0.4 $ 1.0 $ 1.1 $ — $ — $ — $ — Interest cost 2.9 3.4 8.6 10.3 0.1 — 0.1 0.2 Expected return on plan assets (4.5 ) (4.8 ) (13.5 ) (14.3 ) — — — — Amortization of prior service (credit) — — — — — (0.4 ) — (0.4 ) Amortization of net actuarial (gains) losses 1.0 1.2 3.1 3.4 — (0.1 ) — (0.8 ) Settlements — — — 0.3 — — — — Net periodic cost (income) $ (0.3 ) $ 0.2 $ (0.8 ) $ 0.8 $ 0.1 $ (0.5 ) $ 0.1 $ (1.0 ) We expect to contribute $14.3 million to our pension and other postretirement benefit plans in 2016. We contributed $9.0 million to our U.S. qualified pension plan during the nine months ended September 30, 2016 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Accumulated other comprehensive income or loss (“AOCI”) represents the cumulative balance of other comprehensive income, net of tax, as of the balance sheet date. For JBT, AOCI is primarily composed of adjustments related to pension and other postretirement benefit plans, derivatives designated as hedges, and foreign currency translation adjustments. Changes in the AOCI balances for the three months ended September 30, 2016 by component are shown in the following table: Pension and Other Postretirement Benefits Derivatives Designated as Hedges Foreign Currency Translation Total (In millions) Beginning balance, June 30, 2016 $ (102.6 ) $ (4.0 ) $ (38.7 ) $ (145.3 ) Other comprehensive income (loss) before reclassification 0.1 0.6 (1.1 ) (0.4 ) Amounts reclassified from accumulated other comprehensive income 0.5 0.2 — 0.7 Ending balance, September 30, 2016 $ (102.0 ) $ (3.2 ) $ (39.8 ) $ (145.0 ) Reclassification adjustments from AOCI into earnings for pension and other postretirement benefit plans for the three months ended September 30, 2016 were $0.9 million of charges in selling, general and administrative expense, net of $0.4 million in provision for income taxes. Reclassification adjustments for derivatives designated as hedges for the same period were $0.3 million of charges in interest expense, net of $0.1 million in provision for income taxes. Changes in the AOCI balances for the nine months ended September 30, 2016 by component are shown in the following table: Pension and Other Postretirement Benefits Derivatives Designated as Hedges Foreign Currency Translation Total (In millions) Beginning balance, December 31, 2015 $ (103.8 ) $ (0.8 ) $ (42.6 ) $ (147.2 ) Other comprehensive income (loss) before reclassification 0.1 (3.0 ) 2.8 (0.1 ) Amounts reclassified from accumulated other comprehensive income 1.7 0.6 — 2.3 Ending balance, September 30, 2016 $ (102.0 ) $ (3.2 ) $ (39.8 ) $ (145.0 ) Reclassification adjustments from AOCI into earnings for pension and other postretirement benefit plans for the nine months ended September 30, 2016 were $2.7 million of charges in selling, general and administrative expense, net of $1.0 million in provision for income taxes. Reclassification adjustments for derivatives designated as hedges for the same period were $0.9 million of charges in interest expense, net of $0.3 million in provision for income taxes. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION During the nine months ended September 30, 2016 , we granted a total of 174,898 restricted stock units to certain employees and directors under an existing stock-based compensation plan. The aggregate fair value of the grants was $8.0 million . A portion of the units will vest on May 1, 2017, with the remaining units vesting on April 1, 2019. Grants of share-based awards are generally expected to be amortized over their vesting period. The amortization period will be shorter if an employee attains age 62, and meets the plan’s service requirement provision prior to the vesting date. The Company recognizes compensation expense based on estimated grant date fair values for all share-based awards issued to employees and directors. Total compensation expense was $2.6 million and $7.1 million for the three and nine months ended September 30, 2016 , respectively. Total compensation expense recorded in selling, general and administrative expense on the Consolidated Statement of Income was $1.9 million and $5.2 million for the three and nine months ended September 30, 2015 , respectively. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share from continuing operations for the respective periods and our basic and diluted shares outstanding: Three Months Ended Nine Months Ended (In millions, except per share data) 2016 2015 2016 2015 Basic earnings per share: Income from continuing operations $ 20.6 $ 12.7 $ 44.6 $ 35.1 Weighted average number of shares outstanding 29.4 29.5 29.4 29.5 Basic earnings per share from continuing operations $ 0.70 $ 0.43 $ 1.52 $ 1.19 Diluted earnings per share: Income from continuing operations $ 20.6 $ 12.7 $ 44.6 $ 35.1 Weighted average number of shares outstanding 29.4 29.5 29.4 29.5 Effect of dilutive securities: Restricted stock 0.4 0.3 0.4 0.3 Total shares and dilutive securities 29.8 29.8 29.8 29.8 Diluted earnings per share from continuing operations $ 0.69 $ 0.43 $ 1.50 $ 1.18 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS The fair value framework requires the categorization of assets and liabilities into three levels based upon the assumptions (inputs) used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. The three levels are defined as follows: • Level 1 : Unadjusted quoted prices in active markets for identical assets and liabilities that the Company can assess at the measurement date. • Level 2 : Observable inputs other than those included in Level 1 that are observable for the asset or liability, either directly or indirectly. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. • Level 3 : Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability. Financial assets and financial liabilities measured at fair value on a recurring basis are as follows: As of September 30, 2016 As of December 31, 2015 (In millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets: Investments $ 11.5 $ 11.5 $ — $ — $ 8.9 $ 8.9 $ — $ — Derivatives 4.7 — 4.7 — 7.0 — 7.0 — Total assets $ 16.2 $ 11.5 $ 4.7 $ — $ 15.9 $ 8.9 $ 7.0 $ — Liabilities: Derivatives $ 9.4 $ — $ 9.4 $ — $ 2.9 $ — $ 2.9 $ — Contingent consideration 0.8 — — 0.8 3.0 — — 3.0 Total liabilities $ 10.2 $ — $ 9.4 $ 0.8 $ 5.9 $ — $ 2.9 $ 3.0 Investments represent securities held in a trust for the non-qualified deferred compensation plan. Investments are classified as trading securities and are valued based on quoted prices in active markets for identical assets that we have the ability to access. Investments are reported separately in Other assets on the Condensed Consolidated Balance Sheets. Investments include an unrealized gain of $0.7 million as of September 30, 2016 and unrealized loss of $0.7 million as of December 31, 2015 . We use the income approach to measure the fair value of derivative instruments on a recurring basis. This approach calculates the present value of the future cash flow by measuring the change between the derivative contract rate and the published market indicative currency rate, multiplied by the contract notional values, and applying an appropriate discount rate. We also perform a qualitative assessment of counterparty credit risk. The contingent consideration relates to the earnout provision recorded in conjunction with the acquisition completed in the first quarter of 2016 for $0.8 million . The carrying amounts of cash and cash equivalents, trade receivables and payables, as well as financial instruments included in other current assets and other current liabilities, approximate fair values because of their short-term maturities. The carrying values and the estimated fair values of our debt financial instruments are summarized in the table below: As of September 30, 2016 As of December 31, 2015 (In millions) Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Five-year revolving credit facility, expires February 10, 2020 $ 300.0 $ 300.0 $ 279.4 $ 279.4 Brazilian loan due April 15, 2016 — — 0.3 0.3 Brazilian loan due October 16, 2017 2.0 1.8 2.7 2.4 Foreign credit facilities 3.6 3.6 — — Other — — 0.3 0.3 There is no active or observable market for our fixed rate Brazilian loans. Therefore, the estimated fair value is based on discounted cash flows using current interest rates available for debt with similar terms and remaining maturities. The estimates of the all-in interest rate for discounting the loans are based on a broker quote for loans with similar terms. We do not have a rate adjustment for risk profile changes, covenant issues or credit rating changes, therefore the broker quote is deemed to be the closest approximation of current market rates. The carrying values of the remaining borrowings approximate their fair values due to their variable interest rates. |
Derivative Financial Instrument
Derivative Financial Instruments and Risk Management | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments and Risk Management | DERIVATIVE FINANCIAL INSTRUMENTS AND RISK MANAGEMENT Derivative Financial Instruments All derivatives are recorded as other assets or liabilities in the Condensed Consolidated Balance Sheets at their respective fair values. For derivatives designated as cash flow hedges, the effective portion of the unrealized gain or loss related to the derivatives are recorded in Other comprehensive income (loss) until the transaction affects earnings. We assess both at inception of the hedge and on an ongoing basis, whether the derivative in the hedging transaction has been, and will continue to be, highly effective in offsetting changes in cash flows of the hedged item. The impact of any ineffectiveness is recognized in the Condensed Consolidated Statements of Income. Changes in the fair value of derivatives that do not meet the criteria for designation as a hedge are recognized in earnings. Foreign Exchange: We manufacture and sell products in a number of countries throughout the world and, as a result, we are exposed to movements in foreign currency exchange rates. Our major foreign currency exposures involve the markets in Western Europe, South America and Asia. Some of our sales and purchase contracts contain embedded derivatives due to the nature of doing business in certain jurisdictions, which we take into consideration as part of our risk management policy. The purpose of our foreign currency hedging activities is to manage the economic impact of exchange rate volatility associated with anticipated foreign currency purchases and sales made in the normal course of business. We primarily utilize forward foreign exchange contracts with maturities of less than 2 years in managing this foreign exchange rate risk. We have not designated these forward foreign exchange contracts, which have a notional value at September 30, 2016 of $548.9 million , as hedges and therefore do not apply hedge accounting. The following table presents the fair value of foreign currency derivatives included within the Condensed Consolidated Balance Sheets: As of September 30, 2016 As of December 31, 2015 (In millions) Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities Other current assets / liabilities $ 3.8 $ 4.2 $ 5.8 $ 1.3 Other assets / liabilities 0.9 0.1 1.2 0.1 Total $ 4.7 $ 4.3 $ 7.0 $ 1.4 A master netting arrangement allows counterparties to net settle amounts owed to each other as a result of separate offsetting derivative transactions. We enter into master netting arrangements with our counterparties when possible to mitigate credit risk in derivative transactions by permitting us to net settle for transactions with the same counterparty. However, we do not net settle with such counterparties. As a result, we present derivatives at their gross fair values in the Condensed Consolidated Balance Sheets. As of September 30, 2016 and December 31, 2015 , information related to these offsetting arrangements was as follows: (In millions) As of September 30, 2016 Offsetting of Assets Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Net Presented in the Consolidated Balance Sheets Amount Subject to Master Netting Agreement Net Amount Derivatives $ 4.7 $ — $ 4.7 $ (2.0 ) $ 2.7 (In millions) As of September 30, 2016 Offsetting of Liabilities Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Net Presented in the Consolidated Balance Sheets Amount Subject to Master Netting Agreement Net Amount Derivatives $ 9.4 $ — $ 9.4 $ (2.6 ) $ 6.8 (In millions) As of December 31, 2015 Offsetting of Assets Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Net Presented in the Consolidated Balance Sheets Amount Subject to Master Netting Agreement Net Amount Derivatives $ 7.0 $ — $ 7.0 $ (1.7 ) $ 5.3 (In millions) As of December 31, 2015 Offsetting of Liabilities Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Net Presented in the Consolidated Balance Sheets Amount Subject to Master Netting Agreement Net Amount Derivatives $ 2.9 $ — $ 2.9 $ (1.7 ) $ 1.2 The following table presents the location and amount of the gain (loss) on foreign currency derivatives and on the remeasurement of assets and liabilities denominated in foreign currencies, as well as the net impact recognized in the Condensed Consolidated Statements of Income: Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivatives Amount of Gain (Loss) Recognized in Income on Derivatives Three Months Ended Nine Months Ended (In millions) 2016 2015 2016 2015 Foreign exchange contracts Revenue $ (0.4 ) $ (0.3 ) $ (0.9 ) $ — Foreign exchange contracts Cost of sales (0.1 ) 0.1 (0.4 ) (0.4 ) Foreign exchange contracts Other income, net — (0.1 ) (0.1 ) — Total (0.5 ) (0.3 ) (1.4 ) (0.4 ) Remeasurement of assets and liabilities in foreign currencies (0.1 ) 0.5 (0.4 ) (0.7 ) Net gain (loss) on foreign currency transactions $ (0.6 ) $ 0.2 $ (1.8 ) $ (1.1 ) Interest Rates : We have entered into interest rate swaps to fix the interest rate applicable to certain of our variable-rate debt, including a forward starting interest rate swap entered into on January 15, 2016 covering the period beginning January 19, 2017 to January 19, 2021. The agreements swap one-month LIBOR for fixed rates. We have designated these swaps as cash flow hedges and all changes in fair value of the swaps are recognized in Accumulated other comprehensive income (loss). At September 30, 2016 , the fair value recorded in other liabilities on the Condensed Consolidated Balance Sheet was $5.3 million . The effective portion of these derivatives designated as cash flow hedges of $3.2 million has been reported in Other comprehensive income (loss), net of tax, on the Condensed Consolidated Statement of Comprehensive Income. Ineffectiveness from cash flow hedges, all of which are interest rate swaps, was immaterial as of September 30, 2016 . Refer to Note 9 . Fair Value Of Financial Instruments for a description of how the values of the above financial instruments are determined. Credit Risk By their nature, financial instruments involve risk including credit risk for non-performance by counterparties. Financial instruments that potentially subject us to credit risk primarily consist of trade receivables and derivative contracts. We manage the credit risk on financial instruments by transacting only with financially secure counterparties, requiring credit approvals and establishing credit limits, and monitoring counterparties’ financial condition. Our maximum exposure to credit loss in the event of non-performance by the counterparty is limited to the amount drawn and outstanding on the financial instrument. Allowances for losses are established based on collectability assessments. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES In the normal course of our business, we are at times subject to pending and threatened legal actions, some for which the relief or damages sought may be substantial. Although we are not able to predict the outcome of such actions, after reviewing all pending and threatened actions with counsel and based on information currently available, management believes that the outcome of such actions, individually or in the aggregate, will not have a material adverse effect on our results of operations or financial position. However, it is possible that the ultimate resolution of such matters, if unfavorable, may be material to our results of operations in a particular future period as the time and amount of any resolution of such actions and its relationship to the future results of operations are not currently known. Liabilities are established for pending legal claims only when losses associated with the claims are judged to be probable, and the loss can be reasonably estimated. In many lawsuits and arbitrations, it is not considered probable that a liability has been incurred or not possible to estimate the ultimate or minimum amount of that liability until the case is close to resolution, in which case no liability would be recognized until that time. We are currently the subject of an audit being conducted by the State of Delaware to determine whether we have complied with Delaware unclaimed property (escheat) laws. This audit is being conducted by an outside firm on behalf of the State of Delaware and covers the years from 1986 through the present. In addition to seeking the turnover of unclaimed property subject to escheat laws, the State of Delaware may seek interest, penalties, and other relief. We are not able to reasonably estimate a possible assessment from this audit at this time. Guarantees and Product Warranties In the ordinary course of business with customers, vendors and others, we issue standby letters of credit, performance bonds, surety bonds and other guarantees. These financial instruments, which totaled $206.0 million at September 30, 2016 , represent guarantees of our future performance. We also have provided $4.6 million of bank guarantees and letters of credit to secure a portion of our existing financial obligations. The majority of these financial instruments expire within two years ; we expect to replace them through the issuance of new or the extension of existing letters of credit and surety bonds. In some instances, we guarantee our customers’ financing arrangements. We are responsible for payment of any unpaid amounts, but will receive indemnification from third parties for between sixty and ninety-five percent of the contract values. In addition, we generally retain recourse to the equipment sold. As of September 30, 2016 , the gross value of such arrangements was $8.2 million , of which our net exposure under such guarantees was $0.6 million . We provide warranties of various lengths and terms to certain of our customers based on standard terms and conditions and negotiated agreements. We provide for the estimated cost of warranties at the time revenue is recognized for products where reliable, historical experience of warranty claims and costs exists. We also provide a warranty liability when additional specific obligations are identified. The warranty obligation reflected in other current liabilities in the consolidated balance sheets is based on historical experience by product and considers failure rates and the related costs in correcting a product failure. Warranty cost and accrual information were as follows: Three Months Ended Nine Months Ended (In millions) 2016 2015 2016 2015 Balance at beginning of period $ 12.7 $ 10.0 $ 12.5 $ 10.2 Expense for new warranties 3.0 3.1 8.6 8.0 Adjustments to existing accruals (0.1 ) — (0.5 ) (0.3 ) Claims paid (2.3 ) (2.7 ) (7.3 ) (7.4 ) Added through acquisition — 0.6 — 0.6 Translation — (0.1 ) — (0.2 ) Balance at end of period $ 13.3 $ 10.9 $ 13.3 $ 10.9 |
Business Segment Information
Business Segment Information | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Business Segment Information | BUSINESS SEGMENT INFORMATION Segment operating profit is defined as total segment revenue less segment operating expenses. Business segment information was as follows: Three Months Ended Nine Months Ended (In millions) 2016 2015 2016 2015 Revenue: JBT FoodTech $ 235.9 $ 177.8 $ 642.2 $ 480.9 JBT AeroTech 112.7 95.8 303.3 272.8 Intercompany eliminations 1.0 (0.3 ) — (0.8 ) Total revenue $ 349.6 $ 273.3 $ 945.5 $ 752.9 Income before income taxes Segment operating profit: JBT FoodTech $ 28.2 $ 20.5 $ 78.0 $ 56.1 JBT AeroTech 12.0 9.5 31.9 26.2 Total segment operating profit 40.2 30.0 109.9 82.3 Corporate items: Corporate expense (1) (10.4 ) (8.9 ) (31.4 ) (24.3 ) Restructuring expense (2) (0.3 ) — (9.4 ) — Operating income 29.5 21.1 69.1 58.0 Net interest expense (2.8 ) (1.5 ) (7.0 ) (5.3 ) Income from continuing operations before income taxes $ 26.7 $ 19.6 $ 62.1 $ 52.7 (1) Corporate expense generally includes corporate staff-related expense, stock-based compensation, pension and other postretirement benefit expenses not related to service, LIFO adjustments, certain foreign currency-related gains and losses, and the impact of unusual or strategic events not representative of segment operations. (2) Refer to Note 13 . Restructuring for further information on restructuring expense. |
Restructuring
Restructuring | 9 Months Ended |
Sep. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | RESTRUCTURING Restructuring costs primarily consist of employee separation benefits under our existing severance programs, foreign statutory termination benefits, certain one-time termination benefits, contract termination costs, asset impairment charges and other costs that are associated with restructuring actions. Certain restructuring charges are accrued prior to payments made in accordance with applicable guidance. For such charges, the amounts are determined based on estimates prepared at the time the restructuring actions were approved by management. In the first quarter of 2014, we implemented a plan to optimize the overall JBT cost structure on a global basis. The initiatives under this plan include streamlining operations, consolidating certain facilities and enhancing our general and administrative infrastructure. We released $0.9 million of the liability as of September 30, 2016 which we no longer expect to pay in connection with this plan due to actual severance payments differing from the original estimates and natural attrition of employees. Remaining payments required under this plan are expected to be paid during 2016. In the first quarter of 2016, we implemented our optimization program to realign FoodTech’s Protein business in North America and Liquid Foods business in Europe, accelerate JBT’s strategic sourcing initiatives, and consolidate smaller facilities. The total estimated cost in connection with this plan is in the range of $11 million to $13 million . We recorded $7.5 million , $2.0 million , and $0.8 million in the first, second and third quarters of 2016, respectively. We anticipate incurring an additional $1 million to $2 million by the end of 2016. All payments required under this plan are expected to be made during 2016 and 2017. Additional information regarding the restructuring activities is presented in the tables below: Charges Incurred During the Charges Incurred During the Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2016 2015 2016 2015 Severance and related expense $ (0.5 ) $ — $ 5.3 $ — Asset impairment — — 0.1 — Other 0.8 — 4.0 — Total restructuring charges $ 0.3 $ — $ 9.4 $ — The restructuring charges are associated with the FoodTech segment, and are excluded from our calculation of segment operating profit. Charges incurred during the three months ended September 30, 2016 primarily relate to third party consulting services and relocation expenses incurred as a direct result of our plan. Liability balances for restructuring activities are included in other current liabilities in the accompanying condensed consolidated balance sheets. The table below details the activities in 2016: (In millions) Balance as of Charged to Earnings Payments Made/Charges Applied Balance as of Severance and related expense $ 2.6 $ 5.3 $ (2.1 ) $ 5.9 Asset impairment — 0.1 — 0.1 Other — 4.0 (4.0 ) — Total $ 2.6 $ 9.4 $ (6.0 ) $ 6.0 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS As a result of an acquisition, we continued a relationship with a supplier of parts for use in our manufacturing of equipment. An employee hired by JBT as a part of this acquisition has a noncontrolling ownership interest in this supplier. We made purchases from this supplier of $1.2 million and $2.5 million during the three and nine months ended September 30, 2016 , respectively. We made purchases from this supplier of $0.8 million and $2.8 million during the three and nine months ended September 30, 2015 , respectively. We had outstanding accounts payable to this supplier of $0.2 million and $0.6 million as of September 30, 2016 and December 31, 2015 , respectively. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS On October 3, 2016, the Company signed a definitive agreement to acquire Tipper Tie, Inc. ("Tipper Tie") from Dover Corporation. Tipper Tie, headquartered in Apex, North Carolina, is a leading provider of engineered processing and packing solutions, and related consumables to the food industry. This acquisition will enable us to add complementary package solutions to our existing protein platform, and provide greater value to our customers. The agreed to purchase price is $160.0 million , before customary post-closing adjustments, which we expect to pay by accessing our revolving credit facility. We expect to complete the purchase during the fourth quarter of 2016. On October 14, 2016, we completed our acquisition of Cooling and Applied Technologies, Inc. (“C.A.T.”), located in Russellville, Arkansas. C.A.T. is a leading manufacturer of value-added food solutions, primarily for the poultry industry, and focuses on chillers, injection, marination, weighing, freezing, and refrigeration systems. This acquisition will enhance our presence in primary and secondary protein processing and advances our strategic acquisition program in Proteins and Liquid Foods. The purchase price was $90.0 million , which was funded with cash on hand as well as borrowings under our revolving credit facility. We entered into a third amendment to the credit agreement governing our credit facilities (the "Credit Agreement") on October 20, 2016 whereby certain lenders party to the Credit Agreement provided an incremental term loan in an aggregate principal amount of $150.0 million utilizing a portion of its $250 million expansion feature in the Credit Agreement. |
Description of Business and B23
Description of Business and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation In accordance with Securities and Exchange Commission (“SEC”) rules for interim periods, the accompanying unaudited condensed consolidated financial statements (the “interim financial statements”) do not include all of the information and notes for complete financial statements as required by accounting principles generally accepted in the United States of America (“U.S. GAAP”). As such, the accompanying interim financial statements should be read in conjunction with the JBT Annual Report on Form 10-K for the year ended December 31, 2015 , which provides a more complete understanding of the Company’s accounting policies, financial position, operating results, business, properties, and other matters. The year-end condensed consolidated balance sheet was derived from audited financial statements. In the opinion of management, the interim financial statements reflect all normal recurring adjustments necessary for a fair presentation of our financial condition and operating results as of and for the periods presented. Revenue, expenses, assets and liabilities can vary during each quarter of the year. Therefore, the interim results and trends in the interim financial statements may not be representative of those for the full year or any future period. We have reclassified the prior year amortization expense of intangible assets not considered contract-related from cost of sales to selling, general and administrative expense to conform with current year presentation. |
Use of Estimates | Use of estimates Preparation of financial statements that follow U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. |
Recently Adopted Accounting Standards and Recently Issued Accounting Standards Not Yet Adopted | Recently adopted accounting standards In April 2015, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30) - Simplifying Presentation of Debt Issuance Costs. The core principle of the ASU is that an entity should present debt issuance costs as a direct deduction from the face amount of that debt in the balance sheet similar to the manner in which a debt discount or premium is presented, and not reflected as a deferred charge or deferred credit. Subsequent to the issuance of ASU 2015-03 the SEC staff made an announcement regarding the presentation of debt issuance costs associated with line-of-credit arrangements, which was codified by the FASB in ASU 2015-15. This guidance, which clarifies the exclusion of line-of-credit arrangements from the scope of ASU 2015-03, is effective upon adoption of ASU 2015-03. This guidance became effective for us as of January 1, 2016 and there was no effect on our consolidated financial statements and related disclosures. In April 2015, the FASB issued ASU No. 2015-05, Internal-Use Software (Subtopic 350-40) - Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. The ASU applies to cloud computing arrangements including software as a service, platform as a service, infrastructure as a service, and other similar hosting arrangements, and was issued to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. The ASU provides guidance about whether the arrangement includes a software license. The core principle of the ASU is that if a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance will not change U.S. GAAP for a customer’s accounting for service contracts. This guidance became effective for us as of January 1, 2016 and there was no effect on our consolidated financial statements and related disclosures. In September 2015, the FASB issued ASU No. 2015-16, Simplifying the Accounting for Measurement-Period Adjustments. The ASU eliminates the requirement for an acquirer to retrospectively adjust the financial statements for measurement-period adjustments that occur in periods after a business combination is consummated. The core principle of the ASU is that entities will be required to recognize the cumulative impact of a measurement period adjustment (including the impact on prior periods) in the reporting period in which the adjustment is identified. This guidance became effective for us as of January 1, 2016 and we determined the guidance did not have a material impact on our consolidated financial statements and related disclosures. Recently issued accounting standards not yet adopted In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) . The new standard will replace most existing revenue recognition guidance in U.S. GAAP. The core principle of the ASU requires companies to reevaluate when revenue is recorded on a transaction based upon newly defined criteria, either at a point in time or over time as goods or services are delivered. The ASU requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and estimates, and changes in those estimates. In early 2016, the FASB issued additional guidance: ASU No. 2016-10, 2016-11 and 2016-12. These updates provide further guidance and clarification on specific items within the previously issued ASU. The new standard becomes effective for us as of January 1, 2018, with the option to early adopt the standard for annual periods beginning on or after December 15, 2016, and allows for both retrospective and modified-retrospective methods of adoption. The Company does not plan to early adopt the standard. We have preliminarily concluded that we will adopt this Topic 606 via the retrospective transition method, taking advantage of the allowed practical expedients, and restating our consolidated financial statements for 2016 and 2017. We are substantially complete with our gap assessment and have determined that we will qualify for over-time recognition for a large portion of our manufactured equipment as well as refurbishments. To the extent we begin recognizing revenue over time in the future, we believe this will result in an acceleration of revenue as compared to our current revenue recognition methodology of recognizing revenue at a point in time. We are continuing to quantify the impact of this change, and are in the process of finalizing our implementation plan. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330) – Simplifying the Measurement of Inventory . The core principle of the ASU is that entities that historically used the lower of cost or market in the subsequent measurement of inventory will instead be required to measure inventory at the lower of cost and net realizable value. The guidance will not change U.S. GAAP for inventory measured using LIFO or the retail inventory method. The ASU is effective for annual reporting periods, including interim periods within those annual periods, beginning after December 15, 2016. The Company anticipates the adoption in the effective period and we are currently evaluating the effect, if any, that the ASU will have on our consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU No. 2016-02, Leases . The new standard will replace most existing lease guidance in U.S. GAAP. The core principle of the ASU is that lessees are required to report a right to use asset and a lease payment obligation on the balance sheet but recognize expenses on their income statements in a manner similar to today’s accounting, and for lessors the guidance remains substantially similar to current U.S. GAAP. The ASU is effective for annual reporting periods, including interim periods within those annual periods, beginning after December 15, 2018. However, early adoption is permitted. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. We have not yet evaluated and cannot determine the impact this standard will have on our consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-09, Stock Compensation (Topic 718) – Improvements to Employee Share-Based Payment Accounting . The new guidance was developed as part of the FASB’s simplification initiative. The core principle of the ASU requires income tax effects of awards to be recognized in the income statement when the awards vest or are settled. It allows an employer to repurchase more of an employee’s shares than it can today for tax withholding purposes without triggering liability accounting, and allows an employer to make a policy election to account for forfeitures as they occur. The ASU is effective for annual reporting periods, including interim periods within those annual periods, beginning after December 15, 2016. However, early adoption is permitted. The Company anticipates the adoption in the effective period. While we are still evaluating the impact, we do expect that 278,316 awards will vest in January of 2017, and at the September 30, 2016 stock price we anticipate approximately $5.0 million in incremental tax benefit to be reported in earnings. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230) . The new guidance is intended to reduce the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The core principle of the ASU requires the classification of eight specific cash flow issues identified under ASC 230 to be presented as either financing, investing or operating, or some combination thereof, depending upon the nature of the issue. The ASU is effective for annual reporting periods, including interim periods within those annual periods, beginning after December 15, 2017. However, early adoption is permitted. Entities are required to use a retrospective transition approach for all of the issues identified to each period presented. We are currently evaluating the effect, if any, that the ASU will have on our consolidated financial statements and related disclosures. |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
A&B Process Systems | |
Business Acquisition [Line Items] | |
Schedule of Fair Values Recorded for Assets Acquired and Liabilities Assumed | The following table summarizes the fair values recorded for the assets acquired and liabilities assumed for A&B: (In millions) Assets: Trade receivables $ 15.7 Inventories 1.0 Prepaid expenses 0.6 Costs in excess of billings on projects in progress 5.1 Property, plant and equipment 18.1 Other assets 0.2 Intangible assets: Backlog 1.2 Customer relationships 14.6 Non-compete agreements 0.9 Trademark 3.1 Technological know-how - skidded systems 3.9 Technological know-how - tanks and vessels 1.3 Total assets 65.7 Liabilities: Accounts payable 6.1 Billings in excess of costs on projects in progress 6.6 Other liabilities 3.3 Total liabilities 16.0 Total cash consideration paid and accrued 103.0 Goodwill $ 53.3 |
Stork Food Dairy Systems BV | |
Business Acquisition [Line Items] | |
Schedule of Fair Values Recorded for Assets Acquired and Liabilities Assumed | The following table summarizes the fair values recorded for the assets acquired and liabilities assumed for SFDS: (In millions) Assets: Cash $ 1.1 Trade receivables 10.0 Other receivables 2.5 Inventories 4.8 Costs in excess of billings on projects in progress 7.8 Property, plant and equipment 9.8 Intangible assets: Customer relationships 2.1 Patents 2.9 Tradename 0.2 Deferred income taxes 1.6 Total assets 42.8 Liabilities: Accounts payable 9.2 Billings in excess of costs on projects in progress 7.6 Deferred income taxes 2.7 Other liabilities 11.3 Total liabilities 30.8 Total purchase price 51.8 Goodwill $ 39.8 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the Carrying Amount of Goodwill by Business Segment | The changes in the carrying amount of goodwill by business segment were as follows: (In millions) JBT FoodTech JBT AeroTech Total Balance as of December 31, 2015 $ 144.8 $ 7.7 $ 152.5 Acquisitions 5.5 — 5.5 Balance as of September 30, 2016 $ 150.3 $ 7.7 $ 158.0 |
Schedule of Intangible Assets | Intangible assets consisted of the following: September 30, 2016 December 31, 2015 (In millions) Gross carrying amount Accumulated amortization Gross carrying amount Accumulated amortization Customer relationships $ 68.4 $ 19.6 $ 70.8 $ 15.9 Patents and acquired technology 35.7 24.3 35.4 23.5 Trademarks and tradenames 19.0 8.4 19.5 7.8 Other 13.9 7.4 13.8 5.5 Total intangible assets $ 137.0 $ 59.7 $ 139.5 $ 52.7 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following: (In millions) September 30, 2016 December 31, 2015 Raw materials $ 65.9 $ 55.0 Work in process 63.4 36.8 Finished goods 83.1 81.8 Gross inventories before LIFO reserves and valuation adjustments 212.4 173.6 LIFO reserves and valuation adjustments (69.0 ) (68.7 ) Inventories, net $ 143.4 $ 104.9 |
Pension and Other Postretirem27
Pension and Other Postretirement Benefits (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of Net Periodic Benefit Cost | Components of net periodic benefit cost were as follows: Pension Benefits Other Postretirement Benefits Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended (In millions) 2016 2015 2016 2015 2016 2015 2016 2015 Service cost $ 0.3 $ 0.4 $ 1.0 $ 1.1 $ — $ — $ — $ — Interest cost 2.9 3.4 8.6 10.3 0.1 — 0.1 0.2 Expected return on plan assets (4.5 ) (4.8 ) (13.5 ) (14.3 ) — — — — Amortization of prior service (credit) — — — — — (0.4 ) — (0.4 ) Amortization of net actuarial (gains) losses 1.0 1.2 3.1 3.4 — (0.1 ) — (0.8 ) Settlements — — — 0.3 — — — — Net periodic cost (income) $ (0.3 ) $ 0.2 $ (0.8 ) $ 0.8 $ 0.1 $ (0.5 ) $ 0.1 $ (1.0 ) |
Accumulated Other Comprehensi28
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Changes in the AOCI Balances | Changes in the AOCI balances for the three months ended September 30, 2016 by component are shown in the following table: Pension and Other Postretirement Benefits Derivatives Designated as Hedges Foreign Currency Translation Total (In millions) Beginning balance, June 30, 2016 $ (102.6 ) $ (4.0 ) $ (38.7 ) $ (145.3 ) Other comprehensive income (loss) before reclassification 0.1 0.6 (1.1 ) (0.4 ) Amounts reclassified from accumulated other comprehensive income 0.5 0.2 — 0.7 Ending balance, September 30, 2016 $ (102.0 ) $ (3.2 ) $ (39.8 ) $ (145.0 ) Changes in the AOCI balances for the nine months ended September 30, 2016 by component are shown in the following table: Pension and Other Postretirement Benefits Derivatives Designated as Hedges Foreign Currency Translation Total (In millions) Beginning balance, December 31, 2015 $ (103.8 ) $ (0.8 ) $ (42.6 ) $ (147.2 ) Other comprehensive income (loss) before reclassification 0.1 (3.0 ) 2.8 (0.1 ) Amounts reclassified from accumulated other comprehensive income 1.7 0.6 — 2.3 Ending balance, September 30, 2016 $ (102.0 ) $ (3.2 ) $ (39.8 ) $ (145.0 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share from continuing operations for the respective periods and our basic and diluted shares outstanding: Three Months Ended Nine Months Ended (In millions, except per share data) 2016 2015 2016 2015 Basic earnings per share: Income from continuing operations $ 20.6 $ 12.7 $ 44.6 $ 35.1 Weighted average number of shares outstanding 29.4 29.5 29.4 29.5 Basic earnings per share from continuing operations $ 0.70 $ 0.43 $ 1.52 $ 1.19 Diluted earnings per share: Income from continuing operations $ 20.6 $ 12.7 $ 44.6 $ 35.1 Weighted average number of shares outstanding 29.4 29.5 29.4 29.5 Effect of dilutive securities: Restricted stock 0.4 0.3 0.4 0.3 Total shares and dilutive securities 29.8 29.8 29.8 29.8 Diluted earnings per share from continuing operations $ 0.69 $ 0.43 $ 1.50 $ 1.18 |
Fair Value of Financial Instr30
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | Financial assets and financial liabilities measured at fair value on a recurring basis are as follows: As of September 30, 2016 As of December 31, 2015 (In millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets: Investments $ 11.5 $ 11.5 $ — $ — $ 8.9 $ 8.9 $ — $ — Derivatives 4.7 — 4.7 — 7.0 — 7.0 — Total assets $ 16.2 $ 11.5 $ 4.7 $ — $ 15.9 $ 8.9 $ 7.0 $ — Liabilities: Derivatives $ 9.4 $ — $ 9.4 $ — $ 2.9 $ — $ 2.9 $ — Contingent consideration 0.8 — — 0.8 3.0 — — 3.0 Total liabilities $ 10.2 $ — $ 9.4 $ 0.8 $ 5.9 $ — $ 2.9 $ 3.0 |
Schedule of Carrying Values and Estimated Fair Values of Debt Financial Instruments | The carrying values and the estimated fair values of our debt financial instruments are summarized in the table below: As of September 30, 2016 As of December 31, 2015 (In millions) Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Five-year revolving credit facility, expires February 10, 2020 $ 300.0 $ 300.0 $ 279.4 $ 279.4 Brazilian loan due April 15, 2016 — — 0.3 0.3 Brazilian loan due October 16, 2017 2.0 1.8 2.7 2.4 Foreign credit facilities 3.6 3.6 — — Other — — 0.3 0.3 |
Derivative Financial Instrume31
Derivative Financial Instruments and Risk Management (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value of Foreign Currency Derivatives in Balance Sheet | The following table presents the fair value of foreign currency derivatives included within the Condensed Consolidated Balance Sheets: As of September 30, 2016 As of December 31, 2015 (In millions) Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities Other current assets / liabilities $ 3.8 $ 4.2 $ 5.8 $ 1.3 Other assets / liabilities 0.9 0.1 1.2 0.1 Total $ 4.7 $ 4.3 $ 7.0 $ 1.4 |
Schedule of Derivative Assets at Fair Value | As of September 30, 2016 and December 31, 2015 , information related to these offsetting arrangements was as follows: (In millions) As of September 30, 2016 Offsetting of Assets Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Net Presented in the Consolidated Balance Sheets Amount Subject to Master Netting Agreement Net Amount Derivatives $ 4.7 $ — $ 4.7 $ (2.0 ) $ 2.7 (In millions) As of December 31, 2015 Offsetting of Assets Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Net Presented in the Consolidated Balance Sheets Amount Subject to Master Netting Agreement Net Amount Derivatives $ 7.0 $ — $ 7.0 $ (1.7 ) $ 5.3 |
Schedule of Derivative Liabilities at Fair Value | (In millions) As of December 31, 2015 Offsetting of Liabilities Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Net Presented in the Consolidated Balance Sheets Amount Subject to Master Netting Agreement Net Amount Derivatives $ 2.9 $ — $ 2.9 $ (1.7 ) $ 1.2 (In millions) As of September 30, 2016 Offsetting of Liabilities Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Net Presented in the Consolidated Balance Sheets Amount Subject to Master Netting Agreement Net Amount Derivatives $ 9.4 $ — $ 9.4 $ (2.6 ) $ 6.8 |
Schedule of Location and Amount of Gain (Loss) on Foreign Currency Derivatives and on the Remeasurement of Assets and Liabilities Denominated in Foreign Currencies | The following table presents the location and amount of the gain (loss) on foreign currency derivatives and on the remeasurement of assets and liabilities denominated in foreign currencies, as well as the net impact recognized in the Condensed Consolidated Statements of Income: Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivatives Amount of Gain (Loss) Recognized in Income on Derivatives Three Months Ended Nine Months Ended (In millions) 2016 2015 2016 2015 Foreign exchange contracts Revenue $ (0.4 ) $ (0.3 ) $ (0.9 ) $ — Foreign exchange contracts Cost of sales (0.1 ) 0.1 (0.4 ) (0.4 ) Foreign exchange contracts Other income, net — (0.1 ) (0.1 ) — Total (0.5 ) (0.3 ) (1.4 ) (0.4 ) Remeasurement of assets and liabilities in foreign currencies (0.1 ) 0.5 (0.4 ) (0.7 ) Net gain (loss) on foreign currency transactions $ (0.6 ) $ 0.2 $ (1.8 ) $ (1.1 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Warranty Cost and Accrual Information | Warranty cost and accrual information were as follows: Three Months Ended Nine Months Ended (In millions) 2016 2015 2016 2015 Balance at beginning of period $ 12.7 $ 10.0 $ 12.5 $ 10.2 Expense for new warranties 3.0 3.1 8.6 8.0 Adjustments to existing accruals (0.1 ) — (0.5 ) (0.3 ) Claims paid (2.3 ) (2.7 ) (7.3 ) (7.4 ) Added through acquisition — 0.6 — 0.6 Translation — (0.1 ) — (0.2 ) Balance at end of period $ 13.3 $ 10.9 $ 13.3 $ 10.9 |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Revenue and Operating Profit | Business segment information was as follows: Three Months Ended Nine Months Ended (In millions) 2016 2015 2016 2015 Revenue: JBT FoodTech $ 235.9 $ 177.8 $ 642.2 $ 480.9 JBT AeroTech 112.7 95.8 303.3 272.8 Intercompany eliminations 1.0 (0.3 ) — (0.8 ) Total revenue $ 349.6 $ 273.3 $ 945.5 $ 752.9 Income before income taxes Segment operating profit: JBT FoodTech $ 28.2 $ 20.5 $ 78.0 $ 56.1 JBT AeroTech 12.0 9.5 31.9 26.2 Total segment operating profit 40.2 30.0 109.9 82.3 Corporate items: Corporate expense (1) (10.4 ) (8.9 ) (31.4 ) (24.3 ) Restructuring expense (2) (0.3 ) — (9.4 ) — Operating income 29.5 21.1 69.1 58.0 Net interest expense (2.8 ) (1.5 ) (7.0 ) (5.3 ) Income from continuing operations before income taxes $ 26.7 $ 19.6 $ 62.1 $ 52.7 (1) Corporate expense generally includes corporate staff-related expense, stock-based compensation, pension and other postretirement benefit expenses not related to service, LIFO adjustments, certain foreign currency-related gains and losses, and the impact of unusual or strategic events not representative of segment operations. (2) Refer to Note 13 . Restructuring for further information on restructuring expense. |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Activities | Additional information regarding the restructuring activities is presented in the tables below: Charges Incurred During the Charges Incurred During the Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2016 2015 2016 2015 Severance and related expense $ (0.5 ) $ — $ 5.3 $ — Asset impairment — — 0.1 — Other 0.8 — 4.0 — Total restructuring charges $ 0.3 $ — $ 9.4 $ — |
Schedule of Restructuring Reserve by Type of Cost | Liability balances for restructuring activities are included in other current liabilities in the accompanying condensed consolidated balance sheets. The table below details the activities in 2016: (In millions) Balance as of Charged to Earnings Payments Made/Charges Applied Balance as of Severance and related expense $ 2.6 $ 5.3 $ (2.1 ) $ 5.9 Asset impairment — 0.1 — 0.1 Other — 4.0 (4.0 ) — Total $ 2.6 $ 9.4 $ (6.0 ) $ 6.0 |
Description of Business and B35
Description of Business and Basis of Presentation - Narrative (Details) - Scenario, Forecast - Accounting Standards Update 2016-09 $ in Millions | 1 Months Ended |
Jan. 31, 2017USD ($)shares | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Awards expected to vest (shares) | shares | 278,316 |
Tax benefit, share-based compensation | $ | $ 5 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) | Oct. 01, 2015 | Jul. 31, 2015 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2016 | Sep. 30, 2015 |
Business Acquisition [Line Items] | ||||||||
Cash payments to acquire businesses | $ 3,200,000 | $ 50,900,000 | ||||||
A&B Process Systems | ||||||||
Business Acquisition [Line Items] | ||||||||
Consideration paid to acquire business | $ 103,000,000 | |||||||
Contingent consideration, payment if earnings target is not achieved | $ 0 | |||||||
Working capital adjustment | 100,000 | |||||||
Goodwill deductible for tax purposes | 60,300,000 | |||||||
Purchase accounting adjustment, goodwill | $ 1,800,000 | |||||||
A&B Process Systems | Earnout | ||||||||
Business Acquisition [Line Items] | ||||||||
Contingent consideration | $ 3,000,000 | |||||||
A&B Process Systems | Customer relationships | ||||||||
Business Acquisition [Line Items] | ||||||||
Purchase accounting adjustment, intangible assets | 900,000 | |||||||
Intangible assets, useful life | 8 years | |||||||
A&B Process Systems | Trademark | ||||||||
Business Acquisition [Line Items] | ||||||||
Purchase accounting adjustment, intangible assets | 400,000 | |||||||
Intangible assets, useful life | 14 years | |||||||
A&B Process Systems | Technological know-how - skidded systems | ||||||||
Business Acquisition [Line Items] | ||||||||
Purchase accounting adjustment, intangible assets | 200,000 | |||||||
Intangible assets, useful life | 6 years | |||||||
A&B Process Systems | Backlog | ||||||||
Business Acquisition [Line Items] | ||||||||
Purchase accounting adjustment, intangible assets | 100,000 | |||||||
Intangible assets, useful life | 6 months | |||||||
A&B Process Systems | Non-compete agreements | ||||||||
Business Acquisition [Line Items] | ||||||||
Purchase accounting adjustment, intangible assets | $ 100,000 | |||||||
Intangible assets, useful life | 5 years | |||||||
A&B Process Systems | Technological know-how - tanks and vessels | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets, useful life | 9 years | |||||||
Stork Food Dairy Systems BV | ||||||||
Business Acquisition [Line Items] | ||||||||
Purchase accounting adjustment, goodwill | $ 3,000,000 | |||||||
Cash payments to acquire businesses | $ 50,700,000 | |||||||
Cash acquired from acquisition | $ 1,100,000 | |||||||
Purchase accounting adjustment, other liabilities | 1,100,000 | |||||||
Purchase accounting adjustment, deferred tax assets | 500,000 | |||||||
Purchase accounting adjustment, deferred tax liabilities | (600,000) | |||||||
Stork Food Dairy Systems BV | Customer relationships | ||||||||
Business Acquisition [Line Items] | ||||||||
Purchase accounting adjustment, intangible assets | (2,000,000) | |||||||
Intangible assets, useful life | 15 years | |||||||
Stork Food Dairy Systems BV | Tradename | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets, useful life | 17 months | |||||||
Stork Food Dairy Systems BV | Patents | ||||||||
Business Acquisition [Line Items] | ||||||||
Purchase accounting adjustment, intangible assets | $ (1,000,000) | |||||||
Intangible assets, useful life | 7 years | |||||||
Intangible Assets, Amortization Period | Stork Food Dairy Systems BV | Customer relationships | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets, useful life | 8 years | |||||||
Scenario, Forecast | A&B Process Systems | ||||||||
Business Acquisition [Line Items] | ||||||||
Settlement of contingent consideration | $ 3,000,000 |
Acquisitions - Fair Values of A
Acquisitions - Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Oct. 01, 2015 | Jul. 31, 2015 | Sep. 30, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 158 | $ 152.5 | ||
A&B Process Systems | ||||
Business Acquisition [Line Items] | ||||
Trade receivables | $ 15.7 | |||
Inventories | 1 | |||
Prepaid expenses | 0.6 | |||
Costs in excess of billings on projects in progress | 5.1 | |||
Property, plant and equipment | 18.1 | |||
Other assets | 0.2 | |||
Total assets | 65.7 | |||
Accounts payable | 6.1 | |||
Billings in excess of costs on projects in progress | 6.6 | |||
Other liabilities | 3.3 | |||
Total liabilities | 16 | |||
Total cash consideration paid and accrued | 103 | |||
Goodwill | 53.3 | |||
A&B Process Systems | Backlog | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 1.2 | |||
A&B Process Systems | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 14.6 | |||
A&B Process Systems | Non-compete agreements | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 0.9 | |||
A&B Process Systems | Trademark | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 3.1 | |||
A&B Process Systems | Technological know-how - skidded systems | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 3.9 | |||
A&B Process Systems | Technological know-how - tanks and vessels | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | $ 1.3 | |||
Stork Food Dairy Systems BV | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 1.1 | |||
Trade receivables | 10 | |||
Inventories | 4.8 | |||
Costs in excess of billings on projects in progress | 7.8 | |||
Property, plant and equipment | 9.8 | |||
Other assets | 2.5 | |||
Total assets | 42.8 | |||
Deferred income taxes | 1.6 | |||
Accounts payable | 9.2 | |||
Billings in excess of costs on projects in progress | 7.6 | |||
Other liabilities | 11.3 | |||
Deferred income taxes | 2.7 | |||
Total liabilities | 30.8 | |||
Total purchase price | 51.8 | |||
Goodwill | 39.8 | |||
Stork Food Dairy Systems BV | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 2.1 | |||
Stork Food Dairy Systems BV | Patents | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 2.9 | |||
Stork Food Dairy Systems BV | Tradename | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | $ 0.2 |
Goodwill and Intangible Asset38
Goodwill and Intangible Assets - Changes in the Carrying Amount of Goodwill by Business Segment (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Goodwill [Roll Forward] | |
December 31, 2015 | $ 152.5 |
Acquisitions | 5.5 |
September 30, 2016 | 158 |
JBT FoodTech | |
Goodwill [Roll Forward] | |
December 31, 2015 | 144.8 |
Acquisitions | 5.5 |
September 30, 2016 | 150.3 |
JBT AeroTech | |
Goodwill [Roll Forward] | |
December 31, 2015 | 7.7 |
Acquisitions | 0 |
September 30, 2016 | $ 7.7 |
Goodwill and Intangible Asset39
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 137 | $ 139.5 |
Accumulated amortization | 59.7 | 52.7 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 68.4 | 70.8 |
Accumulated amortization | 19.6 | 15.9 |
Patents and acquired technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 35.7 | 35.4 |
Accumulated amortization | 24.3 | 23.5 |
Trademarks and tradenames | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 19 | 19.5 |
Accumulated amortization | 8.4 | 7.8 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 13.9 | 13.8 |
Accumulated amortization | $ 7.4 | $ 5.5 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 65.9 | $ 55 |
Work in process | 63.4 | 36.8 |
Finished goods | 83.1 | 81.8 |
Gross inventories before LIFO reserves and valuation adjustments | 212.4 | 173.6 |
LIFO reserves and valuation adjustments | (69) | (68.7) |
Inventories, net | $ 143.4 | $ 104.9 |
Pension and Other Postretirem41
Pension and Other Postretirement Benefits - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected employer contributions to pension and other postretirement benefit plans in current year | $ 14.3 |
US Qualified Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Employer contributions to pension plan in current period | $ 9 |
Pension and Other Postretirem42
Pension and Other Postretirement Benefits - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 0.3 | $ 0.4 | $ 1 | $ 1.1 |
Interest cost | 2.9 | 3.4 | 8.6 | 10.3 |
Expected return on plan assets | (4.5) | (4.8) | (13.5) | (14.3) |
Amortization of prior service (credit) | 0 | 0 | 0 | 0 |
Amortization of net actuarial (gains) losses | 1 | 1.2 | 3.1 | 3.4 |
Settlements | 0 | 0 | 0 | 0.3 |
Net periodic cost (income) | (0.3) | 0.2 | (0.8) | 0.8 |
Other Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 0.1 | 0 | 0.1 | 0.2 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service (credit) | 0 | (0.4) | 0 | (0.4) |
Amortization of net actuarial (gains) losses | 0 | (0.1) | 0 | (0.8) |
Settlements | 0 | 0 | 0 | 0 |
Net periodic cost (income) | $ 0.1 | $ (0.5) | $ 0.1 | $ (1) |
Accumulated Other Comprehensi43
Accumulated Other Comprehensive Income (Loss) - Change in AOCI Balances (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2016 | Sep. 30, 2016 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 129.7 | |
Ending balance | $ 169.1 | 169.1 |
AOCI Attributable to Parent | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (145.3) | (147.2) |
Other comprehensive income (loss) before reclassification | (0.4) | (0.1) |
Amounts reclassified from accumulated other comprehensive income | 0.7 | 2.3 |
Ending balance | (145) | (145) |
Pension and Other Postretirement Benefits | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (102.6) | (103.8) |
Other comprehensive income (loss) before reclassification | 0.1 | 0.1 |
Amounts reclassified from accumulated other comprehensive income | 0.5 | 1.7 |
Ending balance | (102) | (102) |
Derivatives Designated as Hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (4) | (0.8) |
Other comprehensive income (loss) before reclassification | 0.6 | (3) |
Amounts reclassified from accumulated other comprehensive income | 0.2 | 0.6 |
Ending balance | (3.2) | (3.2) |
Foreign Currency Translation | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (38.7) | (42.6) |
Other comprehensive income (loss) before reclassification | (1.1) | 2.8 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Ending balance | $ (39.8) | $ (39.8) |
Accumulated Other Comprehensi44
Accumulated Other Comprehensive Income (Loss) - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Selling, general and administrative expense | $ 56.5 | $ 48.1 | $ 168.4 | $ 142.1 |
Provision for income taxes | 6.1 | 6.9 | 17.5 | 17.6 |
Interest expense, net | 3.1 | $ 1.7 | 8 | $ 6 |
Reclassification out of Accumulated Other Comprehensive Income | Pension and Other Postretirement Benefits | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Selling, general and administrative expense | 0.9 | 2.7 | ||
Provision for income taxes | 0.4 | 1 | ||
Reclassification out of Accumulated Other Comprehensive Income | Derivatives Designated as Hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Provision for income taxes | 0.1 | 0.3 | ||
Interest expense, net | $ 0.3 | $ 0.9 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 2.6 | $ 1.9 | $ 7.1 | $ 5.2 |
Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards granted (in shares) | 174,898 | |||
Fair value of awards granted | $ 8 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Basic earnings per share: | ||||
Income from continuing operations | $ 20.6 | $ 12.7 | $ 44.6 | $ 35.1 |
Weighted average number of shares outstanding (in shares) | 29.4 | 29.5 | 29.4 | 29.5 |
Basic earnings per share from continuing operations (in dollars per share) | $ 0.70 | $ 0.43 | $ 1.52 | $ 1.19 |
Diluted earnings per share: | ||||
Income from continuing operations | $ 20.6 | $ 12.7 | $ 44.6 | $ 35.1 |
Weighted average number of shares outstanding (in shares) | 29.4 | 29.5 | 29.4 | 29.5 |
Effect of dilutive securities: | ||||
Restricted stock (in shares) | 0.4 | 0.3 | 0.4 | 0.3 |
Total shares and dilutive securities (in shares) | 29.8 | 29.8 | 29.8 | 29.8 |
Diluted earnings per share from continuing operations (in dollars per share) | $ 0.69 | $ 0.43 | $ 1.50 | $ 1.18 |
Fair Value of Financial Instr47
Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | ||
Unrealized gain (loss) on investments | $ 0.7 | $ (0.7) |
Novus | ||
Business Acquisition [Line Items] | ||
Contingent consideration | $ 0.8 |
Fair Value of Financial Instr48
Fair Value of Financial Instruments - Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Assets: | ||
Derivatives | $ 4.7 | $ 7 |
Liabilities: | ||
Derivatives | 9.4 | 2.9 |
Fair Value, Measurements, Recurring | ||
Assets: | ||
Investments | 11.5 | 8.9 |
Derivatives | 4.7 | 7 |
Total assets | 16.2 | 15.9 |
Liabilities: | ||
Derivatives | 9.4 | 2.9 |
Contingent consideration | 0.8 | 3 |
Total liabilities | 10.2 | 5.9 |
Fair Value, Measurements, Recurring | Level 1 | ||
Assets: | ||
Investments | 11.5 | 8.9 |
Derivatives | 0 | 0 |
Total assets | 11.5 | 8.9 |
Liabilities: | ||
Derivatives | 0 | 0 |
Contingent consideration | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Assets: | ||
Investments | 0 | 0 |
Derivatives | 4.7 | 7 |
Total assets | 4.7 | 7 |
Liabilities: | ||
Derivatives | 9.4 | 2.9 |
Contingent consideration | 0 | 0 |
Total liabilities | 9.4 | 2.9 |
Fair Value, Measurements, Recurring | Level 3 | ||
Assets: | ||
Investments | 0 | 0 |
Derivatives | 0 | 0 |
Total assets | 0 | 0 |
Liabilities: | ||
Derivatives | 0 | 0 |
Contingent consideration | 0.8 | 3 |
Total liabilities | $ 0.8 | $ 3 |
Fair Value of Financial Instr49
Fair Value of Financial Instruments - Schedule of Carrying Values and Estimated Fair Values of Debt Financial Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Five-year revolving credit facility, expires February 10, 2020 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value, line of credit | $ 300 | $ 279.4 |
Estimated fair value, line of credit | 300 | 279.4 |
Brazilian loan due April 15, 2016 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value, long-term debt | 0 | 0.3 |
Estimated fair value, long-term debt | 0 | 0.3 |
Brazilian loan due October 16, 2017 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value, long-term debt | 2 | 2.7 |
Estimated fair value, long-term debt | 1.8 | 2.4 |
Foreign credit facilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value, line of credit | 3.6 | 0 |
Estimated fair value, line of credit | 3.6 | 0 |
Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value, long-term debt | 0 | 0.3 |
Estimated fair value, long-term debt | $ 0 | $ 0.3 |
Derivative Financial Instrume50
Derivative Financial Instruments and Risk Management - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liability | $ 9.4 | $ 2.9 |
Not Designated as Hedging Instrument | Foreign Exchange Contract | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, term of contract (less than) | 2 years | |
Notional amount | $ 548.9 | |
Cash Flow Hedging | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Gain recognized in other comprehensive income (loss), effective portion | 3.2 | |
Cash Flow Hedging | Designated as Hedging Instrument | Interest Rate Swap | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liability | $ 5.3 |
Derivative Financial Instrume51
Derivative Financial Instruments and Risk Management - Fair Value of Foreign Currency Derivatives in Balance Sheet (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative asset, current | $ 3.8 | $ 5.8 |
Derivative liability, current | 4.2 | 1.3 |
Derivative asset, noncurrent | 0.9 | 1.2 |
Derivative liability, noncurrent | 0.1 | 0.1 |
Total derivative asset | 4.7 | 7 |
Total derivative liability | $ 4.3 | $ 1.4 |
Derivative Financial Instrume52
Derivative Financial Instruments and Risk Management - Derivative Assets at Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross Amounts of Recognized Assets | $ 4.7 | $ 7 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Presented in the Consolidated Balance Sheets | 4.7 | 7 |
Amount Subject to Master Netting Agreement | (2) | (1.7) |
Net Amount | $ 2.7 | $ 5.3 |
Derivative Financial Instrume53
Derivative Financial Instruments and Risk Management - Derivative Liabilities at Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross Amounts of Recognized Liabilities | $ 9.4 | $ 2.9 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Presented in the Consolidated Balance Sheets | 9.4 | 2.9 |
Amount Subject to Master Netting Agreement | (2.6) | (1.7) |
Net Amount | $ 6.8 | $ 1.2 |
Derivative Financial Instrume54
Derivative Financial Instruments and Risk Management - Location and Amount of Gain (Loss) on Foreign Currency Derivatives (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income on Derivatives | $ (0.5) | $ (0.3) | $ (1.4) | $ (0.4) |
Remeasurement of assets and liabilities in foreign currencies | (0.1) | 0.5 | (0.4) | (0.7) |
Net loss on foreign currency transactions | (0.6) | 0.2 | (1.8) | (1.1) |
Revenue | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income on Derivatives | (0.4) | (0.3) | (0.9) | 0 |
Cost of sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income on Derivatives | (0.1) | 0.1 | (0.4) | (0.4) |
Other income, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income on Derivatives | $ 0 | $ (0.1) | $ (0.1) | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Product Warranty Liability [Line Items] | |
Guarantor obligations, expiration term | P2Y |
Customers Financing Arrangements Guarantee | |
Product Warranty Liability [Line Items] | |
Guarantor obligations, maximum exposure, undiscounted | $ 8.2 |
Guarantor obligations, maximum exposure, undiscounted, net | 0.6 |
Performance Guarantee | |
Product Warranty Liability [Line Items] | |
Guarantor obligations, maximum exposure, undiscounted | 206 |
Financial Guarantee | |
Product Warranty Liability [Line Items] | |
Guarantor obligations, maximum exposure, undiscounted | $ 4.6 |
Maximum | |
Product Warranty Liability [Line Items] | |
Guarantor obligations, amount recoverable from third-parties (as a percent) | 95.00% |
Minimum | |
Product Warranty Liability [Line Items] | |
Guarantor obligations, amount recoverable from third-parties (as a percent) | 60.00% |
Commitments and Contingencies56
Commitments and Contingencies - Schedule of Warranty Cost and Accrual Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Balance at beginning of period | $ 12.7 | $ 10 | $ 12.5 | $ 10.2 |
Expense for new warranties | 3 | 3.1 | 8.6 | 8 |
Adjustments to existing accruals | (0.1) | 0 | (0.5) | (0.3) |
Claims paid | (2.3) | (2.7) | (7.3) | (7.4) |
Added through acquisition | 0 | 0.6 | 0 | 0.6 |
Translation | 0 | (0.1) | 0 | (0.2) |
Balance at end of period | $ 13.3 | $ 10.9 | $ 13.3 | $ 10.9 |
Business Segment Information -
Business Segment Information - Schedule of Segment Revenue and Operating Profit (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 349.6 | $ 273.3 | $ 945.5 | $ 752.9 |
Segment operating profit | 40.2 | 30 | 109.9 | 82.3 |
Corporate expense | (56.5) | (48.1) | (168.4) | (142.1) |
Restructuring expense | (0.3) | 0 | (9.4) | 0 |
Operating income | 29.5 | 21.1 | 69.1 | 58 |
Net interest expense | (3.1) | (1.7) | (8) | (6) |
Income from continuing operations before income taxes | 26.7 | 19.6 | 62.1 | 52.7 |
Operating Segments | JBT FoodTech | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 235.9 | 177.8 | 642.2 | 480.9 |
Segment operating profit | 28.2 | 20.5 | 78 | 56.1 |
Operating Segments | JBT AeroTech | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 112.7 | 95.8 | 303.3 | 272.8 |
Segment operating profit | 12 | 9.5 | 31.9 | 26.2 |
Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1 | (0.3) | 0 | (0.8) |
Corporate, Non-Segment | ||||
Segment Reporting Information [Line Items] | ||||
Corporate expense | (10.4) | (8.9) | (31.4) | (24.3) |
Restructuring expense | (0.3) | 0 | (9.4) | 0 |
Operating income | 29.5 | 21.1 | 69.1 | 58 |
Net interest expense | $ (2.8) | $ (1.5) | $ (7) | $ (5.3) |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring expense | $ 0.3 | $ 0 | $ 9.4 | $ 0 | ||
Restructuring Plan, 2014 | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Reduction of restructuring reserve | 0.9 | |||||
Restructuring Plan, 2016 | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring expense | 0.8 | $ 2 | $ 7.5 | |||
Minimum | Restructuring Plan, 2016 | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Total expected restructuring cost under plan | 11 | 11 | ||||
Expected remaining restructuring costs | 1 | 1 | ||||
Maximum | Restructuring Plan, 2016 | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Total expected restructuring cost under plan | 13 | 13 | ||||
Expected remaining restructuring costs | $ 2 | $ 2 |
Restructuring - Schedule of Res
Restructuring - Schedule of Restructuring Activities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Restructuring and Related Activities [Abstract] | ||||
Severance and related expense | $ (0.5) | $ 0 | $ 5.3 | $ 0 |
Asset impairment | 0 | 0 | 0.1 | 0 |
Other | 0.8 | 0 | 4 | 0 |
Total restructuring charges | $ 0.3 | $ 0 | $ 9.4 | $ 0 |
Restructuring - Schedule of R60
Restructuring - Schedule of Restructuring Reserve by Type of Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Restructuring Reserve [Roll Forward] | ||||
December 31, 2015 | $ 2.6 | |||
Charged to Earnings | $ 0.3 | $ 0 | 9.4 | $ 0 |
Payments Made/Charges Applied | (6) | |||
September 30, 2016 | 6 | 6 | ||
Severance and related expense | ||||
Restructuring Reserve [Roll Forward] | ||||
December 31, 2015 | 2.6 | |||
Charged to Earnings | 5.3 | |||
Payments Made/Charges Applied | (2.1) | |||
September 30, 2016 | 5.9 | 5.9 | ||
Asset impairment | ||||
Restructuring Reserve [Roll Forward] | ||||
December 31, 2015 | 0 | |||
Charged to Earnings | 0.1 | |||
Payments Made/Charges Applied | 0 | |||
September 30, 2016 | 0.1 | 0.1 | ||
Other | ||||
Restructuring Reserve [Roll Forward] | ||||
December 31, 2015 | 0 | |||
Charged to Earnings | 4 | |||
Payments Made/Charges Applied | (4) | |||
September 30, 2016 | $ 0 | $ 0 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - Employee - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||||
Purchases from related party | $ 1.2 | $ 0.8 | $ 2.5 | $ 2.8 | |
Outstanding payables to related parties | $ 0.2 | $ 0.2 | $ 0.6 |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) - USD ($) | Oct. 14, 2016 | Dec. 31, 2016 | Oct. 20, 2016 |
C.A.T. | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Consideration paid to acquire business | $ 90,000,000 | ||
Scenario, Forecast | Tipper Tie, Inc. | |||
Subsequent Event [Line Items] | |||
Consideration paid to acquire business | $ 160,000,000 | ||
Secured Debt | Credit Agreement | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Aggregate principal amount | $ 150,000,000 | ||
Expansion feature | $ 250,000,000 |