Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 01, 2017 | Apr. 28, 2017 | |
Document and Entity Information | ||
Entity Registrant Name | SPX FLOW, Inc. | |
Entity Central Index Key | 1,641,991 | |
Document Type | 10-Q | |
Document Period End Date | Apr. 1, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 42,285,740 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
Income Statement [Abstract] | ||
Revenues | $ 433.2 | $ 505 |
Costs and expenses: | ||
Cost of products sold | 294.1 | 345.8 |
Selling, general and administrative | 115.3 | 133.9 |
Intangible amortization | 4.6 | 5.7 |
Special charges | 8.6 | 41 |
Operating income (loss) | 10.6 | (21.4) |
Other expense, net | (2.1) | (3) |
Interest expense, net | (15.9) | (14.4) |
Loss before income taxes | (7.4) | (38.8) |
Income tax benefit | 0.1 | 6.7 |
Net loss | (7.3) | (32.1) |
Less: Net income (loss) attributable to noncontrolling interests | 0.1 | (1) |
Net loss attributable to SPX FLOW, Inc. | $ (7.4) | $ (31.1) |
Basic loss per share of common stock (in dollars per share) | $ (0.18) | $ (0.75) |
Diluted loss per share of common stock (in dollars per share) | $ (0.18) | $ (0.75) |
Weighted-average number of common shares outstanding - basic (in shares) | 41,647 | 41,232 |
Weighted-average number of common shares outstanding - diluted (in shares) | 41,647 | 41,232 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (7.3) | $ (32.1) |
Other comprehensive income, net - foreign currency translation adjustments | 49.5 | 12.2 |
Total comprehensive income (loss) | 42.2 | (19.9) |
Less: Total comprehensive income (loss) attributable to noncontrolling interests | 0.9 | (0.9) |
Total comprehensive income (loss) attributable to SPX FLOW, Inc. | $ 41.3 | $ (19) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Apr. 01, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and equivalents | $ 208.7 | $ 215.1 |
Accounts receivable, net | 440.7 | 446.9 |
Inventories, net | 302.3 | 272.4 |
Other current assets | 62.1 | 72.8 |
Total current assets | 1,013.8 | 1,007.2 |
Property, plant and equipment: | ||
Land | 34.7 | 36.1 |
Buildings and leasehold improvements | 243.3 | 242.4 |
Machinery and equipment | 434.2 | 420.8 |
Property, plant and equipment, gross | 712.2 | 699.3 |
Accumulated depreciation | (340) | (322) |
Property, plant and equipment, net | 372.2 | 377.3 |
Goodwill | 738.7 | 722.5 |
Intangibles, net | 345.6 | 344.3 |
Other assets | 156 | 151.9 |
TOTAL ASSETS | 2,626.3 | 2,603.2 |
Current liabilities: | ||
Accounts payable | 206.6 | 203.8 |
Accrued expenses | 355.9 | 329.9 |
Income taxes payable | 11.4 | 10.8 |
Short-term debt | 19.9 | 27.7 |
Current maturities of long-term debt | 20.3 | 20.2 |
Total current liabilities | 614.1 | 592.4 |
Long-term debt | 1,015.2 | 1,060.9 |
Deferred and other income taxes | 64.7 | 62.2 |
Other long-term liabilities | 124.2 | 125.5 |
Total long-term liabilities | 1,204.1 | 1,248.6 |
Commitments and contingent liabilities (Note 11) | ||
Mezzanine equity | 21 | 20.1 |
SPX FLOW, Inc. shareholders’ equity: | ||
Preferred stock, no par value, 3,000,000 shares authorized, and no shares issued and outstanding | 0 | 0 |
Common stock, par value $0.01 per share, 300,000,000 shares authorized, 42,542,195 issued and 42,272,342 outstanding at April 1, 2017, and 42,092,393 issued and 41,920,477 outstanding at December 31, 2016 | 0.4 | 0.4 |
Paid-in capital | 1,646.3 | 1,640.4 |
Accumulated deficit | (381.3) | (373.9) |
Accumulated other comprehensive loss | (472.7) | (521.4) |
Common stock in treasury (269,853 shares at April 1, 2017, and 171,916 shares at December 31, 2016) | (8.2) | (4.9) |
Total SPX FLOW, Inc. shareholders' equity | 784.5 | 740.6 |
Noncontrolling interests | 2.6 | 1.5 |
Total equity | 787.1 | 742.1 |
TOTAL LIABILITIES, MEZZANINE EQUITY AND EQUITY | $ 2,626.3 | $ 2,603.2 |
CONDENSED CONSOLIDATED BALANCE5
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Apr. 01, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 3,000,000 | 3,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 42,542,195 | 42,092,393 |
Common stock, shares outstanding (in shares) | 42,272,342 | 41,920,477 |
Common stock in treasury (in shares) | 269,853 | 171,916 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Total SPX FLOW, Inc. Shareholders' Equity | Common Stock | Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Common Stock in Treasury | Noncontrolling Interests |
Beginning balance at Dec. 31, 2015 | $ 1,270.6 | $ 1,259.1 | $ 0.4 | $ 1,621.7 | $ 21.1 | $ (382.7) | $ (1.4) | $ 11.5 |
Beginning balance (in shares) at Dec. 31, 2015 | 41,400,000 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (32.1) | (31.1) | (31.1) | (1) | ||||
Other comprehensive income, net | 12.2 | 12.1 | 12.1 | 0.1 | ||||
Incentive plan activity | 1.9 | 1.9 | 1.9 | |||||
Incentive plan activity (in shares) | 100,000 | |||||||
Stock-based compensation expense | 6.9 | 6.9 | 6.9 | |||||
Restricted stock and restricted stock unit vesting, including related tax provision and net of tax withholdings | (5.8) | (5.8) | (3.2) | (2.6) | ||||
Restricted stock and restricted stock unit vesting, including related tax provision and net of tax withholdings (in shares) | 200,000 | |||||||
Dividends attributable to noncontrolling interests and other | (1.2) | (1.2) | ||||||
Ending balance at Apr. 02, 2016 | 1,252.5 | 1,243.1 | $ 0.4 | 1,627.3 | (10) | (370.6) | (4) | 9.4 |
Ending balance (in shares) at Apr. 02, 2016 | 41,700,000 | |||||||
Beginning balance at Dec. 31, 2016 | $ 742.1 | 740.6 | $ 0.4 | 1,640.4 | (373.9) | (521.4) | (4.9) | 1.5 |
Beginning balance (in shares) at Dec. 31, 2016 | 41,920,477 | 41,900,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | $ (7.3) | (7.4) | (7.4) | 0.1 | ||||
Other comprehensive income, net | 49.5 | 48.7 | 48.7 | 0.8 | ||||
Incentive plan activity | 1.6 | 1.6 | 1.6 | |||||
Incentive plan activity (in shares) | 100,000 | |||||||
Stock-based compensation expense | 4 | 4 | 4 | |||||
Restricted stock and restricted stock unit vesting, including related tax provision and net of tax withholdings | (3) | (3) | 0.3 | (3.3) | ||||
Restricted stock and restricted stock unit vesting, including related tax provision and net of tax withholdings (in shares) | 300,000 | |||||||
Dividends attributable to noncontrolling interests and other | 0.2 | 0.2 | ||||||
Ending balance at Apr. 01, 2017 | $ 787.1 | $ 784.5 | $ 0.4 | $ 1,646.3 | $ (381.3) | $ (472.7) | $ (8.2) | $ 2.6 |
Ending balance (in shares) at Apr. 01, 2017 | 42,272,342 | 42,300,000 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY Parenthetical $ in Millions | 3 Months Ended |
Apr. 02, 2016USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Tax benefit (provision) | $ (3) |
CONDENSED CONSOLIDATED STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
Cash flows from (used in) operating activities: | ||
Net loss | $ (7.3) | $ (32.1) |
Adjustments to reconcile net loss to net cash from (used in) operating activities: | ||
Special charges | 8.6 | 41 |
Deferred income taxes | (3.2) | (13.8) |
Depreciation and amortization | 15.7 | 17.1 |
Stock-based compensation | 4 | 6.9 |
Pension and other employee benefits | 1.2 | 2.9 |
Gain on asset sales and other, net | 0 | (1.3) |
Changes in operating assets and liabilities: | ||
Accounts receivable and other assets | 18.8 | (10.3) |
Inventories | (21.5) | (21.5) |
Accounts payable, accrued expenses and other | 16.2 | (50.7) |
Cash spending on restructuring actions | (9.4) | (6.5) |
Net cash from (used in) operating activities | 23.1 | (68.3) |
Cash flows from (used in) investing activities: | ||
Proceeds from asset sales and other, net | 20.3 | 2 |
Increase in restricted cash | 0 | (0.2) |
Capital expenditures | (4.8) | (16.5) |
Net cash from (used in) investing activities | 15.5 | (14.7) |
Cash flows from (used in) financing activities: | ||
Borrowings under senior credit facilities | 84.5 | 7 |
Repayments of senior credit facilities | (133.5) | (5) |
Borrowings under trade receivables financing arrangement | 38.1 | 22 |
Repayments of trade receivables financing arrangement | (35.9) | (13) |
Borrowings under other financing arrangements | 0 | 1.1 |
Repayments of other financing arrangements | (8) | (1.8) |
Minimum withholdings paid on behalf of employees for net share settlements, net | (3.2) | (2.8) |
Dividends paid to noncontrolling interests in subsidiary | (0.1) | (1.2) |
Net cash from (used in) financing activities | (58.1) | 6.3 |
Change in cash and equivalents due to changes in foreign currency exchange rates | 13.1 | 1.2 |
Net change in cash and equivalents | (6.4) | (75.5) |
Consolidated cash and equivalents, beginning of period | 215.1 | 295.9 |
Consolidated cash and equivalents, end of period | $ 208.7 | $ 220.4 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Apr. 01, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION SPX FLOW, Inc. and its consolidated subsidiaries (“SPX FLOW,” ‘‘the Company,’’ “we,” “us,” or “our”) operate in three business segments. We prepared the condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim reporting. As permitted under those rules and regulations, certain footnotes or other financial information normally required by accounting principles generally accepted in the United States (“GAAP”) can be condensed or omitted. The financial statements represent our accounts after the elimination of intercompany transactions and, in our opinion, include the adjustments (consisting only of normal and recurring items) necessary for their fair presentation. Preparing financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from these estimates. The unaudited information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated and combined financial statements contained in our 2016 Annual Report on Form 10-K. Interim results are not necessarily indicative of full year results and the condensed consolidated financial statements may not be indicative of the Company’s future performance. We establish actual interim closing dates using a fiscal calendar, which requires our businesses to close their books on the Saturday closest to the end of the first calendar quarter, with the second and third quarters being 91 days in length. Our fourth quarter ends on December 31. The interim closing dates for the first, second and third quarters of 2017 are April 1, July 1, and September 30, compared to the respective April 2, July 2, and October 1, 2016 dates. We had two less days in the first quarter of 2017 and will have one more day in the fourth quarter of 2017 than in the respective 2016 periods. |
NEW ACCOUNTING PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Apr. 01, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | NEW ACCOUNTING PRONOUNCEMENTS The following is a summary of new accounting pronouncements that apply or may apply to our business. In May 2014, and as subsequently amended, the Financial Accounting Standards Board (the "FASB") issued a new standard on revenue recognition that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The new standard requires a number of disclosures intended to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue, and the related cash flows. The standard is effective for interim and annual reporting periods beginning after December 15, 2017. We plan to adopt the new revenue standard in the first quarter of 2018 using the modified retrospective adoption method and continue to evaluate the potential impacts to our revenues related to our pending adoption of the new revenue standard. Amongst other impacts, the amended revenue recognition guidance has the potential to affect our current practice of accounting for certain contracts as revenue using the completed contract method under existing guidance in instances where such contracts are determined to have multiple performance obligations that are distinct within the context of the contract. Likewise, in certain contracts of specific product lines, we engineer and manufacture goods that may have no alternative use (absent significant costs to reengineer the goods) and we have an enforceable right to payment for our performance over the life of the project. For such contracts, we may be required to recognize revenue over time under the new guidance as compared with our current practice of using the completed contract method. In addition, we are reviewing our accounting policies to determine whether any changes may be necessary in order to ensure proper recognition of such obligations that we consider perfunctory in nature and/or qualitatively and quantitatively immaterial under existing revenue guidance, but which may be considered significant within the context of the contract under the new revenue standard. Our preliminary assessments of the potential impacts of the new revenue recognition standard are subject to change. In January 2016, the FASB issued an amendment to existing guidance which revises entities’ accounting related to: (i) the classification and measurement of investments in equity securities, and (ii) the presentation of certain fair value changes for financial liabilities measured at fair value. The amendment also changes certain disclosure requirements associated with the fair value of financial instruments. The amended guidance is effective for interim and annual reporting periods beginning after December 15, 2017 and requires a modified retrospective approach to adoption. Early adoption is only permitted for a provision related to instrument-specific credit risk. We are currently evaluating the effect that this amendment will have on our condensed consolidated financial statements. In February 2016, the FASB issued a new standard which requires a lessee to recognize on its balance sheet the assets and liabilities associated with the rights and obligations created by leases with terms that exceed twelve months. Leases will continue to be classified as either financing or operating, with classification affecting the recognition, measurement and presentation of costs and cash flows arising from a lease. The new guidance is effective for interim and annual reporting periods beginning after December 15, 2018 and requires a modified retrospective approach to adoption for lessees related to capital and operating leases existing at, or entered into after, the earliest comparative period presented in the financial statements, with certain practical expedients available. Early adoption is permitted. We are currently evaluating the effect that this new standard will have on our condensed consolidated financial statements. In March 2016, the FASB issued an amendment to clarify that a change in the counterparty to a derivative instrument that has been designated as a hedging instrument does not, in and of itself, require de-designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. The amendment is effective for interim and annual reporting periods beginning after December 15, 2016 and may be applied on either a prospective or modified retrospective basis. The impact of the prospective adoption of this amendment had no effect on our first quarter 2017 condensed consolidated financial statements. In March 2016, the FASB issued an amendment which simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, classification of awards as either equity or liabilities, as well as classification in the statement of cash flows. This amendment is effective for prospective interim and annual reporting periods beginning after December 15, 2016. We adopted this amendment during the first quarter of 2017. We recognized a tax charge of $1.4 in our income tax provision during the three months ended April 1, 2017 related to the vesting of certain restricted stock shares and restricted stock units during the period which, under previous guidance, would have been recognized as a reduction of paid-in capital. Consistent with our previous policy, we have elected to continue to accrue share-based compensation cost based on the number of awards that are expected to vest (i.e., by assuming a forfeiture rate in our accrual of such cost). See Note 12 for additional information related to our adoption of this amendment. In October 2016, the FASB issued an amendment that requires recognition of the income tax consequences of an intra-entity transfer of assets other than inventory. Under current authoritative guidance, the tax effects of intra-entity asset transfers (intercompany sales) are deferred until the transferred asset is sold to a third party or otherwise recovered through use. This amendment requires tax expense and deferred tax asset recognition from the intra-entity sale of the asset in the seller’s tax jurisdiction when the asset transfer occurs, even though the pre-tax effects of that transaction are eliminated in consolidation. This update is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted, but the guidance can only be adopted in the first interim period of the early-adopt fiscal year. We are currently evaluating the impact that this amended guidance will have on our condensed consolidated financial statements. In November 2016, the FASB issued an additional amendment to guidance for statement of cash flow presentation, which requires that entities explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents in the statement of cash flows. Entities will also be required to reconcile such total to amounts on the balance sheet and disclose the nature of the restrictions. This amendment is effective for interim and annual reporting periods beginning after December 15, 2017, with early adoption permitted, including retrospective application. We expect to adopt this amendment in the first quarter of 2018 and do not expect a material impact to our condensed consolidated financial statements. In January 2017, the FASB issued an amendment to post-acquisition accounting for goodwill which eliminates the requirement to perform a Step 2 impairment analysis to determine the implied fair value of goodwill. Rather, goodwill impairment charges will be calculated as the amount by which a reporting unit's carrying amount exceeds its fair value. This amendment is effective for any annual or interim goodwill impairment tests performed in fiscal years beginning after December 15, 2019, with early adoption permitted. We adopted this amendment in the first quarter of 2017 and will perform our annual goodwill impairment test in accordance with the amended guidance, as well as any interim impairment tests, should facts and circumstances necessitate such a test. In March 2017, the FASB issued an amendment to authoritative guidance on the presentation of net periodic pension and other postretirement benefit costs. Under the new rules, entities that sponsor defined benefit plans will present service costs with other employee compensation costs within operating income (or capitalize on the balance sheet, when applicable), while other components of net benefit cost will be presented separately (in one or more line items) outside of operating income and will not be eligible for capitalization. This update is effective for interim and annual reporting periods beginning after December 15, 2017, with early adoption permitted if adopted in the first interim period of the early-adopt fiscal year. We adopted this amendment in the first quarter of 2017 and have accordingly reclassified non-service pension and postretirement costs from “ Selling, general and administrative ” expense to “ Other expense, net ” in our condensed consolidated statements of operations for the three months ended April 1, 2017 and April 2, 2016, as we believe this classification provides investors a more comparative presentation of our selling, general and administrative expense and operating results from period to period. As permitted by the amended guidance, we used amounts disclosed in our employee benefit plans footnote for the first quarter of 2016 as the estimation basis for applying the restrospective presentation requirements. See Note 7 for additional information related to our adoption of the amendment. |
INFORMATION ON REPORTABLE SEGME
INFORMATION ON REPORTABLE SEGMENTS, CORPORATE EXPENSE AND OTHER | 3 Months Ended |
Apr. 01, 2017 | |
Segment Reporting [Abstract] | |
INFORMATION ON REPORTABLE SEGMENTS, CORPORATE EXPENSE AND OTHER | INFORMATION ON REPORTABLE SEGMENTS, CORPORATE EXPENSE AND OTHER We are a global supplier of highly specialized, engineered solutions with operations in over 30 countries and sales in over 150 countries around the world. Many of our solutions play a role in helping to meet global demand for processed foods and beverages and power and energy, particularly in emerging markets. We have three reportable segments: Food and Beverage, Power and Energy, and Industrial. In determining our segments, we apply the threshold criteria of the Segment Reporting Topic of the Codification to operating income or loss of each segment before considering impairment and special charges, pension and postretirement service costs and other indirect corporate expenses (including corporate stock-based compensation). This is consistent with the way our chief operating decision maker evaluates the results of each segment. Food and Beverage The Food and Beverage reportable segment operates in a regulated, global industry with customers who demand highly engineered, turn-key solutions. Key demand drivers include dairy consumption, emerging market capacity expansion, sustainability and productivity initiatives, customer product innovation and food safety. Key products for the segment include mixing, drying, evaporation and separation systems and components, heat exchangers, and reciprocating and centrifugal pump technologies. We also design and construct turn-key systems that integrate many of these products for our customers. Our core brands include Anhydro, APV, Bran+Luebbe, Gerstenberg Schroeder, LIGHTNIN, Seital, and Waukesha Cherry-Burrell. Power and Energy The Power and Energy reportable segment primarily serves customers in the oil and gas industry and, to a lesser extent, the nuclear and other conventional power industries. A large portion of the segment's revenues are concentrated in oil extraction, production and transportation at existing wells, and in pipeline applications. The underlying driver of this segment includes demand for power and energy. Key products for the segment include pumps, valves and related accessories, while the core brands include APV, Bran+Luebbe, ClydeUnion Pumps, Copes-Vulcan, Dollinger Filtration, LIGHTNIN, M&J Valve, Plenty, and Vokes. Industrial The Industrial reportable segment primarily serves customers in the chemical, air treatment, mining, pharmaceutical, marine, shipbuilding, infrastructure construction, general industrial and water treatment industries. Key demand drivers of this segment are tied to macroeconomic conditions and growth in the respective end markets we serve. Key products for the segment are air dryers, filtration equipment, mixers, pumps, hydraulic technologies and heat exchangers. Core brands include Airpel, APV, Bolting Systems, Delair, Deltech, Hankison, Jemaco, Johnson Pump, LIGHTNIN, Power Team, and Stone. Corporate Expense Corporate expense generally relates to the cost of our Charlotte, NC corporate headquarters and our Asia Pacific center in Shanghai, China. Financial data for our reportable segments for the three months ended April 1, 2017 and April 2, 2016 were as follows: Three months ended April 1, 2017 April 2, 2016 Revenues (1) : Food and Beverage $ 165.9 $ 184.8 Power and Energy 105.9 149.7 Industrial 161.4 170.5 Total revenues $ 433.2 $ 505.0 Income (loss): Food and Beverage $ 15.5 $ 17.4 Power and Energy (1.5 ) 2.2 Industrial 21.1 19.4 Total income for reportable segments 35.1 39.0 Corporate expense 15.5 18.9 Pension and postretirement service costs 0.4 0.5 Special charges 8.6 41.0 Consolidated operating income (loss) $ 10.6 $ (21.4 ) (1) We recognized revenues under the percentage-of-completion method of $60.4 and $99.0 in the three months ended April 1, 2017 and April 2, 2016 , respectively. Costs and estimated earnings in excess of billings on contracts accounted for under the percentage-of-completion method were $72.2 and $66.1 as of April 1, 2017 and December 31, 2016 , respectively, and are reported as a component of ‘‘Accounts receivable, net’’ in the condensed consolidated balance sheets. Billings in excess of costs and estimated earnings on uncompleted contracts accounted for under the percentage-of-completion method were $57.9 and $57.2 as of April 1, 2017 and December 31, 2016 , respectively, and are reported as a component of ‘‘Accrued expenses’’ in the condensed consolidated balance sheets. |
SPECIAL CHARGES
SPECIAL CHARGES | 3 Months Ended |
Apr. 01, 2017 | |
Restructuring and Related Activities [Abstract] | |
SPECIAL CHARGES | SPECIAL CHARGES Special charges for the three months ended April 1, 2017 and April 2, 2016 were as follows: Three months ended April 1, 2017 April 2, 2016 Food and Beverage $ 1.5 $ 8.8 Power and Energy 1.0 10.7 Industrial 2.8 4.5 Other 3.3 17.0 Total $ 8.6 $ 41.0 Global Realignment Program As disclosed in our 2016 Annual Report on Form 10-K, we are currently executing a multi-year plan to transition our enterprise to an operating company. As part of this plan, we announced our intent to further optimize our global footprint, streamline business processes and reduce selling, general and administrative expense through a global realignment program. The realignment program is intended to reduce costs across operating sites and corporate and global functions, in part by making structural changes and process enhancements which allow us to operate more efficiently. Special charges for the three months ended April 1, 2017 and April 2, 2016 were substantially associated with this program and included costs associated primarily with employee termination and facility consolidation, as well as certain non-cash charges associated with fixed asset impairments. Special Charges By Reportable Segment Unless otherwise noted below, charges for the three months ended April 1, 2017 and April 2, 2016 relate to our global realignment program. Food and Beverage — Charges for the three months ended April 1, 2017 related primarily to severance and other costs associated with (i) the consolidation and relocation of a manufacturing facility in Germany to an existing facility in Poland, and (ii) a reorganization and consolidation of certain administrative functions primarily in Europe and the Asia Pacific region. Charges for the three months ended April 2, 2016 related primarily to severance and other costs, including (i) the consolidation and relocation of a manufacturing facility in Germany to an existing facility in Poland and of other facilities in Europe, and (ii) various other restructuring initiatives in Europe and the U.S. Power and Energy — Charges for the three months ended April 1, 2017 related primarily to severance and other costs associated with (i) various locations in North America, and (ii) the reorganization and consolidation of certain administrative functions primarily in the EMEA region. Charges for the three months ended April 2, 2016 related primarily to severance and other costs in the U.K., France, Germany and, to a lesser extent, North America, including actions taken to (i) reduce the cost base of the segment in response to oil price declines that began in the latter half of 2014 and continued into 2016, which resulted in a reduction in capital spending by our customers in the oil and gas industries, and (ii) realign certain sites around core service markets. Industrial — Charges for the three months ended April 1, 2017 related primarily to severance and other costs associated with (i) the consolidation and relocation of a manufacturing facility in Sweden to an existing facility in Poland and, to a lesser extent, (ii) the reorganization and consolidation of certain administrative functions in the U.S., EMEA and Asia Pacific. Charges for the three months ended April 2, 2016 related primarily to severance and other costs, including (i) the consolidation and relocation of a manufacturing facility in Denmark to an existing facility in Poland and of certain other North American facilities, and (ii) various other global restructuring initiatives. Other — Charges for the three months ended April 1, 2017 reflected primarily corporate asset impairment and other related charges of $ 3.6 in connection with the sale of certain corporate assets during the period. Charges for the three months ended April 2, 2016 related primarily to corporate asset impairment charges of $12.0 , as well as severance and other related costs. Asset impairment charges resulted primarily from management's decision during the first quarter of 2016 to market certain corporate assets for sale (such corporate assets were sold during the first quarter of 2017, as noted above). Expected charges still to be incurred under actions approved as of April 1, 2017 were approximately $1.7 . The following is an analysis of our restructuring liabilities for the three months ended April 1, 2017 and April 2, 2016 : Three months ended April 1, 2017 April 2, 2016 Balance at beginning of year $ 33.6 $ 32.9 Special charges (1) 5.0 29.0 Utilization — cash (9.4 ) (6.5 ) Currency translation adjustment and other 0.3 1.0 Balance at end of period $ 29.5 $ 56.4 (1) Amounts that impacted special charges but not the restructuring liabilities included $3.6 and $12.0 of asset impairment and other related charges during the three months ended April 1, 2017 and April 2, 2016 , respectively. |
INVENTORIES, NET
INVENTORIES, NET | 3 Months Ended |
Apr. 01, 2017 | |
Inventory Disclosure [Abstract] | |
INVENTORIES, NET | INVENTORIES, NET Inventories at April 1, 2017 and December 31, 2016 comprised the following: April 1, 2017 December 31, 2016 Finished goods $ 99.1 $ 86.2 Work in process 94.4 74.6 Raw materials and purchased parts 114.8 117.8 Total FIFO cost 308.3 278.6 Excess of FIFO cost over LIFO inventory value (6.0 ) (6.2 ) Total inventories $ 302.3 $ 272.4 Inventories include material, labor and factory overhead costs and are reduced, when necessary, to estimated net realizable values. Certain domestic inventories are valued using the last-in, first-out (“LIFO”) method. These inventories were approximately 6% of total inventory at April 1, 2017 and December 31, 2016 . Other inventories are valued using the first-in, first-out (“FIFO”) method. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 3 Months Ended |
Apr. 01, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill The changes in the carrying amount of goodwill by reportable segment for the three months ended April 1, 2017 were as follows: December 31, 2016 Impairments Foreign Currency Translation and Other April 1, 2017 Food and Beverage $ 250.3 $ — $ 8.6 $ 258.9 Power and Energy (1) 256.0 — 3.9 259.9 Industrial (2) 216.2 — 3.7 219.9 Total $ 722.5 $ — $ 16.2 $ 738.7 (1) The carrying amount of goodwill included $244.8 and $241.1 of accumulated impairments as of April 1, 2017 and December 31, 2016 , respectively. (2) The carrying amount of goodwill included $67.7 of accumulated impairments as of April 1, 2017 and December 31, 2016 . As of the first day of our fiscal fourth quarter of 2016, we performed our annual goodwill impairment test, which indicated the estimated fair value of our Power and Energy reporting unit exceeded its carrying value by approximately 4% . Our assumptions in our annual impairment test included, among others, that (i) 2017 revenues would decline between 10% to 15% as a result of lower backlog and 2017 order rates would remain consistent with those experienced in the second half of 2016, (ii) 2017 targeted cost savings would be executed as planned with incremental cash savings expected in 2018 and beyond, (iii) a discount rate of 10.5% , (iv) expanded current and forward EBITDA multiples associated with recent oil and gas industry transactions, which suggested higher valuation multiples than historical averages for the industry, and (v) changes in working capital continuing to correlate with order and revenue trends. The estimated fair value of each of our other reporting units significantly exceeded its respective book value. A change in any of the assumptions used in testing Power and Energy's goodwill for impairment (e.g., projected order, revenue and profit growth rates, discount rate, industry valuation multiples, expected control premium, etc.) could result in Power and Energy's estimated fair value being less than the carrying value of its net assets. For example, a one-hundred basis point increase in the discount rate used in determining Power and Energy's discounted cash flows in our 2016 annual goodwill impairment test would have resulted in Power and Energy's fair value being approximately $27 lower than the carrying value of its net assets as of the date of that fourth quarter test. As of April 1, 2017 , there were no indicators necessitating an interim impairment test of any of our reporting units, based on management's review of operating performance. We will perform our annual impairment testing of goodwill (and indefinite-lived intangible assets that are not amortized), during the fourth quarter of 2017 in conjunction with our annual financial planning process. In performing that annual impairment testing, we will assess, among other items, order trends and the operating cash flow performance of our reporting units, including Power and Energy. Adverse changes to or a failure to achieve the business plans included in our 2016 annual impairment test of our Power and Energy reporting unit, as discussed above, or deterioration of macroeconomic conditions including significant downward price pressure on global oil prices, lower customer capital spending estimates, and/or significant declines in industry multiples, could result in future impairments, which could be material. Other Intangibles, Net Identifiable intangible assets were as follows: April 1, 2017 December 31, 2016 Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value Intangible assets with determinable lives: Customer relationships $ 214.0 $ (107.2 ) $ 106.8 $ 209.6 $ (101.6 ) $ 108.0 Technology 87.3 (43.6 ) 43.7 84.6 (40.8 ) 43.8 Patents 6.7 (4.9 ) 1.8 6.5 (5.1 ) 1.4 Other 12.7 (10.0 ) 2.7 12.3 (9.6 ) 2.7 320.7 (165.7 ) 155.0 313.0 (157.1 ) 155.9 Trademarks with indefinite lives 190.6 — 190.6 188.4 — 188.4 Total $ 511.3 $ (165.7 ) $ 345.6 $ 501.4 $ (157.1 ) $ 344.3 As of April 1, 2017 , the net carrying value of intangible assets with determinable lives consisted of the following by reportable segment: $74.6 in Power and Energy, $54.7 in Food and Beverage, and $25.7 in Industrial. Trademarks with indefinite lives consisted of the following by reportable segment: $97.2 in Food and Beverage, $59.9 in Industrial, and $33.5 in Power and Energy. No impairment charges were recorded during the three months ended April 1, 2017 or April 2, 2016. Changes in the gross carrying values of trademarks and other identifiable intangible assets during the three months ended April 1, 2017 related primarily to foreign currency translation. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 3 Months Ended |
Apr. 01, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS SPX FLOW sponsors a number of defined benefit pension plans and a postretirement plan. For all of these plans, changes in the fair value of plan assets and actuarial gains and losses are recognized to earnings in the fourth quarter of each year, unless earlier remeasurement is required. The remaining components of pension and postretirement expense, primarily service and interest costs and expected return on plan assets, are recorded on a quarterly basis. Components of Net Periodic Pension and Postretirement Benefit Expense (Income) Net periodic benefit expense (income) for our foreign pension plans and our domestic pension and postretirement plans included the following components: Foreign Pension Plans Domestic Pension and Postretirement Plans Total Statement of Operations Caption in Which Expense (Income) is Reported Three months ended April 1, 2017 April 2, 2016 April 1, 2017 April 2, 2016 April 1, 2017 April 2, 2016 Service cost $ 0.2 0.3 $ 0.2 $ 0.2 $ 0.4 $ 0.5 Selling, general and administrative Interest cost 0.1 0.2 0.2 0.3 0.3 0.5 Other expense, net Curtailment gain (1) (1.1 ) — — — (1.1 ) — Other expense, net Total net periodic benefit expense (income) $ (0.8 ) $ 0.5 $ 0.4 $ 0.5 $ (0.4 ) $ 1.0 (1) Gain is related to the cessation of accrual of future benefits by participants in a defined benefit pension plan in the Netherlands effective March 31, 2017. The accumulated obligations for future pension payments to participants in this plan were also transferred to an insurance company at that time. Under the agreement, the insurance company irrevocably assumed the obligation to make future pension payments to the approximately 60 participants of the plan. Employer Contributions During the three months ended April 1, 2017 and April 2, 2016 , contributions to the foreign and domestic pension plans we sponsor were less than $0.1 . |
INDEBTEDNESS
INDEBTEDNESS | 3 Months Ended |
Apr. 01, 2017 | |
Debt Disclosure [Abstract] | |
INDEBTEDNESS | INDEBTEDNESS Debt at April 1, 2017 and December 31, 2016 comprised the following: April 1, 2017 December 31, 2016 Domestic revolving loan facility $ 24.0 $ 68.0 Term loan (1) 385.0 390.0 5.625% senior notes, due in August 2024 300.0 300.0 5.875% senior notes, due in August 2026 300.0 300.0 Trade receivables financing arrangement 23.4 21.2 Other indebtedness (2) 35.3 42.4 Less: deferred financing fees (3) (12.3 ) (12.8 ) Total debt 1,055.4 1,108.8 Less: short-term debt 19.9 27.7 Less: current maturities of long-term debt 20.3 20.2 Total long-term debt $ 1,015.2 $ 1,060.9 (1) The term loan, which had an initial principal balance of $400.0 , is repayable in quarterly installments of 5.0% annually which began with our third quarter of 2016, with the remaining balance repayable in full on September 24, 2020. (2) Primarily includes capital lease obligations of $15.4 and $14.7 and balances under a purchase card program of $17.4 and $17.9 as of April 1, 2017 and December 31, 2016 , respectively. The purchase card program allows for payment beyond customary payment terms for goods and services acquired under the program. As this arrangement extends the payment of these purchases beyond their normal payment terms through third-party lending institutions, we have classified these amounts as short-term debt. (3) Deferred financing fees were comprised of fees related to the term loan and senior notes. A detailed description of our senior credit facilities and senior notes is included in our consolidated and combined financial statements included in our 2016 Annual Report on Form 10-K. The weighted-average interest rate of outstanding borrowings under our senior credit facilities was approximately 3.8% at April 1, 2017 . At April 1, 2017 , we had $416.9 of borrowing capacity under our revolving credit facilities after giving effect to borrowings of $24.0 under the domestic revolving loan facility and $9.1 reserved for outstanding letters of credit. At April 1, 2017 , we had $10.0 of available borrowing capacity under our trade receivables financing arrangement after giving effect to borrowings of $23.4 . Our trade receivables financing arrangement provides for a total commitment of $50.0 from associated lenders, depending upon our trade receivables balance and other factors. In addition, at April 1, 2017 , we had $286.9 of available issuance capacity under our foreign credit instrument facilities after giving effect to $213.1 reserved for outstanding bank guarantees and standby letters of credit. At April 1, 2017 , in addition to the revolving lines of credit described above, we had approximately $5.2 of letters of credit outstanding under separate arrangements in China and India. At April 1, 2017 , we were in compliance with all covenants of our senior credit facilities and senior notes. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended |
Apr. 01, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS We manufacture and sell our products in a number of countries and, as a result, are exposed to movements in foreign currency ("FX") exchange rates. Our objective is to preserve the economic value of non-functional currency-denominated cash flows and to minimize the impact of changes as a result of currency fluctuations. Our principal currency exposures relate to the Euro, Chinese Yuan and British Pound. We had FX forward contracts with an aggregate notional amount of $23.5 and $28.0 outstanding as of April 1, 2017 and December 31, 2016 , respectively, with all such contracts scheduled to mature within one year . We also had FX embedded derivatives with an aggregate notional amount of $19.3 and $21.4 at April 1, 2017 and December 31, 2016 , respectively, with scheduled maturities of $19.1 and $0.2 within one and two years , respectively. There were no unrealized gains or losses recorded in accumulated other comprehensive loss related to FX forward contracts as of April 1, 2017 and December 31, 2016 , respectively. The net losses recorded in "Other expense, net" related to FX losses totaled $1.8 and $3.2 for the three months ended April 1, 2017 and April 2, 2016 , respectively. We enter into arrangements designed to provide the right of setoff in the event of counterparty default or insolvency, and have elected to offset the fair values of our FX forward contracts in our condensed consolidated balance sheets. The gross fair values of our FX forward contracts and FX embedded derivatives, in aggregate, were $2.5 and $2.9 (gross assets) and $0.1 and $0.1 (gross liabilities) at April 1, 2017 and December 31, 2016 , respectively. |
EQUITY AND STOCK-BASED COMPENSA
EQUITY AND STOCK-BASED COMPENSATION | 3 Months Ended |
Apr. 01, 2017 | |
Equity [Abstract] | |
EQUITY AND STOCK-BASED COMPENSATION | EQUITY AND STOCK-BASED COMPENSATION Loss Per Share The following table sets forth the number of weighted average shares outstanding used in the computation of basic and diluted loss per share: Three months ended April 1, 2017 April 2, 2016 Weighted-average shares outstanding, basic 41.647 41.232 Dilutive effect of share-based awards — — Weighted-average shares outstanding, dilutive (1) 41.647 41.232 (1) For the three months ended April 1, 2017 and April 2, 2016 , respectively, an aggregate of 0.943 and 0.861 unvested restricted stock shares, restricted stock units, and stock options outstanding were excluded from the computation of diluted loss per share as we incurred a net loss during the periods. For three three months ended April 1, 2017 and April 2, 2016 , the number of anti-dilutive unvested restricted stock shares and restricted stock units outstanding excluded from the computation of diluted loss per share was 0.166 and 0.579 , respectively. Stock-Based Compensation Prior to September 26, 2015, at which time SPX Corporation (the "former Parent") distributed 100% of our outstanding common stock to its shareholders through a tax-free spin-off transaction (the "Spin-Off"), eligible employees of the Company participated in our former Parent’s share-based compensation plan pursuant to which they were granted share-based awards of its stock. Our former Parent’s share-based compensation plan included awards for restricted stock shares, restricted stock units and stock options. In connection with the Spin-Off, outstanding equity-based awards granted to SPX FLOW employees under our former Parent's plan were converted into awards of the Company using a formula designed to preserve the intrinsic value of the awards immediately prior to the Spin-Off. This conversion did not result in additional compensation expense. Additionally, certain restricted stock units granted to employees in 2014, none of whom were named executive officers at the time, were modified at the Spin-Off date to provide a minimum vesting equivalent to 50% of the underlying units at the end of the applicable remaining service periods. Compensation expense of $0.3 related to the modification was recognized in the three months ended April 2, 2016 , and compensation expense of $0.9 related to the modification was recognized during the remainder of 2016. Since the Spin-Off, SPX FLOW stock-based compensation awards may be granted to certain eligible employees or non-employee directors under the SPX FLOW Stock Compensation Plan (the “Stock Plan”). Under the Stock Plan, up to 1.345 unissued shares of our common stock were available for future grant as of April 1, 2017 . The Stock Plan permits the issuance of authorized but unissued shares or shares from treasury upon the vesting of restricted stock units, granting of restricted stock shares or exercise of stock options. Each restricted stock share, restricted stock unit and stock option granted reduces share availability under the Stock Plan by one share. Restricted stock shares or restricted stock units may be granted to certain eligible employees or non-employee directors in accordance with the Stock Plan and applicable award agreements. Subject to participants' continued service and other award terms and conditions, the restrictions lapse and awards generally vest over a period of time, generally three years (or one year for awards to non-employee directors). In some instances, such as death, disability, or retirement, awards may vest concurrently with or following an employee's termination. Approximately half of such restricted stock shares and restricted stock unit awards vest based on performance thresholds, while the remaining portion vest based on the passage of time since grant date. Eligible employees, including officers, were granted target performance awards during the three months ended April 1, 2017 in which the employee can earn between 50% and 150% of the target performance award in the event, and to the extent, the award meets the required performance vesting criteria. Such awards are generally subject to the employees’ continued employment during the three -year vesting period, and may be completely forfeited if the threshold performance criteria are not met. Vesting for the 2017 target performance awards is based on SPX FLOW shareholder return versus the performance of a composite group of companies, as established under the awards (the "Composite Group"), over the three -year period from January 1, 2017 through December 31, 2019. In addition, certain eligible employees, including officers, were granted awards during the three months ended April 1, 2017 that vest subject to attainment of stated improvements in a three -year average annual return on invested capital (as defined) measured at the conclusion of the measurement period ending December 31, 2019 (including eligible employees’ continued employment during the measurement period). These target performance and internal performance metric awards were issued as restricted stock units to eligible non-officer employees and restricted stock shares to eligible officers. Eligible non-officer employees also were granted restricted stock unit awards during the three months ended April 1, 2017 that vest ratably over three years , subject to the passage of time and the employees’ continued employment during such period. In some instances, such as death, disability, or retirement, awards may vest concurrently with or following an employee's termination. Eligible officers were granted restricted stock share awards in the three months ended April 1, 2017 that vest subject to an internal performance metric during the first year of the award and that also contain a three -year holding period from the grant of the award whereby the holding period is generally released ratably over the three years (subject to a participant's continued employment during that period). Restricted stock share and unit awards granted to eligible employees during the three months ended April 1, 2017 include early retirement provisions which permit recipients to be eligible for vesting generally upon reaching the age of 60 and completing ten years of service (and, if applicable, subject to the attainment of performance measures). Restricted stock shares and restricted stock units that do not vest within the applicable vesting period are forfeited. Stock options may be granted to eligible employees in the form of incentive stock options or nonqualified stock options. The option price per share may be no less than the fair market value of our common stock at the close of business on the date of grant. Upon exercise, the employee has the option to surrender previously owned shares at current value in payment of the exercise price and/or for withholding tax obligations. The recognition of compensation expense for share-based awards is based on their grant-date fair values. The fair value of each award is amortized over the lesser of the award's requisite or derived service period, which is generally up to three years as noted above. For the three months ended April 1, 2017 and April 2, 2016 , we recognized compensation expense related to share-based programs in “Selling, general and administrative” expense in the accompanying condensed consolidated statements of operations as follows: Three months ended April 1, 2017 April 2, 2016 (1) Stock-based compensation expense $ 4.0 $ 6.9 Income tax benefit (1.3 ) (2.4 ) Stock-based compensation expense, net of income tax benefit $ 2.7 $ 4.5 (1) Stock-based compensation expense includes $0.3 of expense related to modifications effected as of Spin-Off date. Restricted Stock Share and Restricted Stock Unit Awards The Monte Carlo simulation model valuation technique was used to determine the fair value of our restricted stock shares and restricted stock units that contain a “market condition.” The Monte Carlo simulation model utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the award and calculates the fair value of each restricted stock share and restricted stock unit award. The following assumptions were used in determining the fair value of the awards granted on the date indicated below: Annual Expected Stock Price Volatility Annual Expected Dividend Yield Risk-free Interest Rate Correlations Between Total Shareholder Return for SPX FLOW and Individual Companies in the Composite Group Minimum Average Maximum January 13, 2017: SPX FLOW 39.4 % — % 1.50 % 0.1848 0.3830 0.5057 Composite Group 28.6 % n/a 1.50 % As SPX FLOW shares have been traded only since the Spin-Off in September 2015 (i.e., with less historical performance than the generally three -year vesting period of the related awards), annual expected stock price volatility was based on the weighted average of SPX FLOW’s historical volatility (since the Spin-Off) and the average historical volatility of the Composite Group, as of the grant date. An expected annual dividend yield was not assumed as dividends are not currently granted on common shares by SPX FLOW. The average risk-free interest rate was based on an interpolation of the two-year and three-year daily treasury yield curve rate as of the grant date. The following table summarizes the unvested restricted stock share and restricted stock unit activity for the three months ended April 1, 2017 : Unvested Restricted Stock Shares and Restricted Stock Units Weighted-Average Grant-Date Fair Value Per Share Outstanding at December 31, 2016 1.275 $37.89 Granted 0.460 35.03 Vested (0.286) 44.82 Forfeited and other (0.239) 31.17 Outstanding at April 1, 2017 1.210 $32.44 As of April 1, 2017 , there was $26.8 of unrecognized compensation cost related to restricted stock share and restricted stock unit compensation arrangements. We expect this cost to be recognized over a weighted-average period of 2.0 years. Stock Options There were 0.365 and 0.371 of SPX FLOW stock options outstanding as of April 1, 2017 and December 31, 2016 , respectively, after giving effect to forfeitures of 0.006 during the first quarter of 2017. Of the 0.365 stock options outstanding, 0.333 were exercisable as of April 1, 2017 . The weighted-average exercise price per share of the stock options is $61.29 and the weighted-average grant-date fair value per share is $19.33 . The term of these options expires on January 2, 2025. As of April 1, 2017 , there was $0.3 of unrecognized compensation cost related to stock options. We expect this cost to be recognized over a weighted-average period of 0.8 years . Accumulated Other Comprehensive Loss The sole component of accumulated other comprehensive loss as of April 1, 2017 and December 31, 2016 , and in the changes thereof during the three months then ended, was foreign currency translation adjustment. The primary component of accumulated other comprehensive loss as of April 2, 2016 and December 31, 2015 , and in the changes thereof during the three months then ended, was foreign currency translation adjustment of $12.1 . The unrealized losses, net of tax, recorded in accumulated other comprehensive loss related to FX forward contracts were less than $0.1 as of April 2, 2016 and December 31, 2015 . Common Stock in Treasury During the three months ended April 1, 2017 and April 2, 2016 , “Common stock in treasury” was increased by $3.3 and $2.6 , respectively, for common stock that was surrendered by recipients of restricted stock as a means of funding the related minimum income tax withholding requirements. |
LITIGATION, CONTINGENT LIABILIT
LITIGATION, CONTINGENT LIABILITIES AND OTHER MATTERS | 3 Months Ended |
Apr. 01, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
LITIGATION, CONTINGENT LIABILITIES AND OTHER MATTERS | LITIGATION, CONTINGENT LIABILITIES AND OTHER MATTERS We are subject to litigation matters that arise in the normal course of business. We believe these matters are either without merit or of a kind that should not have a material effect, individually or in the aggregate, on our financial position, results of operations or cash flows. We are subject to domestic and international environmental protection laws and regulations with respect to our business operations and are operating in compliance with, or taking action aimed at ensuring compliance with, these laws and regulations. We believe our compliance obligations with environmental protection laws and regulations should not have a material effect, individually or in the aggregate, on our financial position, results of operations or cash flows. Mezzanine Equity Independent noncontrolling shareholders in certain foreign subsidiaries of the Company have put options under their respective joint venture operating agreements that allow them to sell their common stock to the controlling shareholders (wholly-owned subsidiaries of SPX FLOW) upon the satisfaction of certain conditions, including the passage of time. The respective carrying values presented in "Mezzanine equity" of our condensed consolidated balance sheets as of April 1, 2017 and December 31, 2016 are stated at the the current exercise value of the put options, irrespective of whether the options are currently exercisable. To the extent the noncontrolling interests' put option price is correlated with the estimated fair value of the subsidiary, we have used the market method to estimate such fair values. This represents a level 3 fair value measurement. None of the noncontrolling interest put options are exercisable at this time. If and when such options are exercised, we expect to settle the option value in cash. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Apr. 01, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Unrecognized Tax Benefits As of April 1, 2017 , we had gross unrecognized tax benefits of $14.5 (net unrecognized tax benefits of $5.5 ), of which $5.5 , if recognized, would impact our effective tax rate. We classify interest and penalties related to unrecognized tax benefits as a component of our income tax provision. As of April 1, 2017 , gross accrued interest totaled $1.9 (net accrued interest of $1.8 ), and there was no accrual for penalties included in our unrecognized tax benefits. Based on the outcome of certain examinations or as a result of the expiration of statutes of limitations for certain jurisdictions, we believe that within the next 12 months it is reasonably possible that our previously unrecognized tax benefits could decrease by $1.0 to $3.0 . The previously unrecognized tax benefits relate to a variety of tax issues, including transfer pricing and non-U.S. income tax matters. The unrecognized tax benefits described above represent amounts that were included in tax returns filed by the Company. Historically, a portion of the Company's operations were included in tax returns filed by the former Parent or its subsidiaries that were not part of the Spin-Off. As a result, some uncertain tax positions related to the Company's operations resulted in unrecognized tax benefits that are now potential obligations of the former Parent or its subsidiaries that were part of the Spin-Off. In addition, some of the Company's tax returns have included the operations of the former Parent's subsidiaries that were not part of the Spin-Off. In certain of these cases, these subsidiaries' activities gave rise to unrecognized tax benefits for which the Company could be potentially liable. When required under the Income Taxes Topic of the Codification, we have recorded a liability for these uncertain tax positions within our condensed consolidated balance sheets. Other Tax Matters During the three months ended April 1, 2017 , we recorded an income tax benefit of $0.1 on $7.4 of pre-tax loss, resulting in an effective tax rate of 1.4% . This compares to an income tax benefit for the three months ended April 2, 2016 of $6.7 on $38.8 of pre-tax loss, resulting in an effective tax rate of 17.3% . The effective tax rate for the first quarter of 2017 was impacted by a tax charge of $1.4 related to the vesting of certain restricted stock shares and restricted stock units during the period. The effective tax rate for the first quarter of 2016 was impacted by tax expense of $5.2 related to pre-tax losses generated during the period for which no tax benefit was recognized. We review our income tax positions on a continuous basis and record a provision for potential uncertain positions when we determine that an uncertain position meets the criteria of the Income Taxes Topic of the Codification. As events change and resolutions occur, adjustments are made to amounts previously provided, such as in the case of audit settlements with taxing authorities. In connection with the Spin-Off, we and the former Parent entered into a Tax Matters Agreement which, among other matters, addresses the allocation of certain tax adjustments that might arise upon examination of the 2013, 2014 and the pre-Spin-Off portion of the 2015 federal income tax returns of the former Parent. None of those returns are currently under examination, and we believe any contingencies have been adequately provided for. State income tax returns generally are subject to examination for a period of three to five years after filing the respective tax returns. The impact on such tax returns of any federal changes remains subject to examination by various states for a period of up to one year after formal notification to the states. We have various state income tax returns in the process of examination or administrative appeal. We believe any uncertain tax positions related to these examinations have been adequately provided for. We have various non-U.S. income tax returns under examination. The most significant of these is the examination in Germany for the 2010 through 2014 tax years. We expect this examination will conclude in 2018. We believe that any uncertain tax positions related to these examinations have been adequately provided for. An unfavorable resolution of one or more of the above matters could have a material adverse effect on our results of operations or cash flows in the quarter and year in which an adjustment is recorded or the tax is due or paid. As audits and examinations are still in process or we have not yet reached the final stages of the appeals process, the timing of the ultimate resolution and any payments that may be required for the above matters cannot be determined at this time. |
FAIR VALUE
FAIR VALUE | 3 Months Ended |
Apr. 01, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In the absence of active markets for the identical assets or liabilities, such measurements involve developing assumptions based on market observable data and, in the absence of such data, internal information consistent with what market participants would use in a hypothetical transaction that occurs at the measurement date. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. Preference is given to observable inputs. These two types of inputs create the following fair value hierarchy: • Level 1 — Quoted prices for identical instruments in active markets. • Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. • Level 3 — Significant inputs to the valuation model are unobservable. There were no changes during the periods presented to the valuation techniques we use to measure asset and liability fair values on a recurring basis. There were no transfers between the three levels of the fair value hierarchy during the three months ended April 1, 2017 and April 2, 2016 . The following section describes the valuation methodologies we use to measure different financial instruments at fair value on a recurring basis. Derivative Financial Instruments Our derivative financial assets and liabilities include FX forward contracts and FX embedded derivatives, valued using valuation models based on observable market inputs such as forward rates, interest rates, our own credit risk and the credit risk of our counterparties, which comprise investment-grade financial institutions. Based on these inputs, the derivative assets and liabilities are classified within Level 2 of the valuation hierarchy. We have not made any adjustments to the inputs obtained from the independent sources. Based on our continued ability to enter into forward contracts, we consider the markets for our fair value instruments active. We primarily use the income approach, which uses valuation techniques to convert future amounts to a single present amount. As of April 1, 2017 and December 31, 2016 , the gross fair values of our derivative financial assets and liabilities, in aggregate, were $2.5 and $2.9 (gross assets) and $0.1 and $0.1 (gross liabilities), respectively. As of April 1, 2017 , there had been no significant impact to the fair value of our derivative liabilities due to our own credit risk as the related instruments are collateralized under our senior credit facilities. Similarly, there had been no significant impact to the fair value of our derivative assets based on our evaluation of our counterparties’ credit risks. Equity Security Investment We have an investment in an equity security that is accounted for under the fair value option, but not readily marketable, and therefore which is classified as a Level 3 asset in the fair value hierarchy. In April 2017, we entered into an agreement to sell our investment in the equity security to a third party, and the security’s value as of April 1, 2017 reflects the sales price under this agreement. In prior periods, we based the security's fair value on a variety of inputs, including reported trades, non-binding broker/dealer quotes, and historical trade prices of the same securities. Market indicators and industry and economic events were also considered. At April 1, 2017 and December 31, 2016 , these assets had a fair value of $6.2 and $7.6 , respectively. The table below presents a reconciliation of our investment in equity securities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended April 1, 2017 and April 2, 2016 , including net unrealized gains (losses) recorded to “Other expense, net.” Three months ended April 1, 2017 April 2, 2016 Balance at beginning of year $ 7.6 $ 8.1 Unrealized gains (losses) recorded to earnings (1.4 ) 0.1 Balance at end of period $ 6.2 $ 8.2 Mezzanine Equity To the extent the noncontrolling interests' put option price is correlated with the estimated fair value of the subsidiary, we use the market method to estimate the fair values of noncontrolling interest put options reported in "Mezzanine equity" using unobservable inputs (Level 3) on a recurring basis. Changes to the noncontrolling interest put option values are reflected as adjustments to "Mezzanine equity" and "Accumulated deficit." Refer to Note 11 for further discussion. Goodwill, Indefinite-Lived Intangible and Other Long-Lived Assets Certain of our non-financial assets are subject to impairment analysis, including long-lived assets, indefinite-lived intangible assets and goodwill. We review the carrying amounts of such assets whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable or at least annually for indefinite-lived intangible assets and goodwill. Any resulting impairment would require that the asset be recorded at its fair value. At April 1, 2017 , we did not have any significant non-financial assets or liabilities that were required to be measured at fair value on a recurring or non-recurring basis. Refer to Note 6 for further discussion pertaining to our annual evaluation of goodwill and other intangible assets for impairment. Indebtedness and Other The estimated fair values of other financial liabilities (excluding capital leases and deferred financing fees) not measured at fair value on a recurring basis as of April 1, 2017 and December 31, 2016 were as follows: April 1, 2017 December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value Domestic revolving loan facility $ 24.0 $ 24.0 $ 68.0 $ 68.0 Term loan (1) 385.0 385.0 390.0 390.0 5.625% Senior notes (1) 300.0 300.0 300.0 300.0 5.875% Senior notes (1) 300.0 300.0 300.0 296.3 Trade receivables financing arrangement 23.4 23.4 21.2 21.2 Other indebtedness 19.9 19.9 27.7 27.7 (1) Carrying amount reflected herein excludes related deferred financing fees. The following methods and assumptions were used in estimating the fair value of these financial instruments: • The fair values of the senior notes were determined using Level 2 inputs within the fair value hierarchy and were based on quoted market prices for the same or similar instruments or on current rates offered to us for debt with similar maturities, subordination and credit default expectations. • The fair values of amounts outstanding under our domestic revolving loan facility, term loan, and trade receivables financing arrangement approximated carrying value due primarily to the variable-rate nature and credit spreads of these instruments, when compared to other similar instruments. • The fair value of other indebtedness approximated carrying value due primarily to the short-term nature of these instruments. The carrying amounts of cash and equivalents and receivables reported in our condensed consolidated balance sheets as of April 1, 2017 and December 31, 2016 approximate fair value due to the short-term nature of those instruments. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Apr. 01, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | We prepared the condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim reporting. As permitted under those rules and regulations, certain footnotes or other financial information normally required by accounting principles generally accepted in the United States (“GAAP”) can be condensed or omitted. The financial statements represent our accounts after the elimination of intercompany transactions and, in our opinion, include the adjustments (consisting only of normal and recurring items) necessary for their fair presentation. Preparing financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from these estimates. The unaudited information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated and combined financial statements contained in our 2016 Annual Report on Form 10-K. Interim results are not necessarily indicative of full year results and the condensed consolidated financial statements may not be indicative of the Company’s future performance. We establish actual interim closing dates using a fiscal calendar, which requires our businesses to close their books on the Saturday closest to the end of the first calendar quarter, with the second and third quarters being 91 days in length. Our fourth quarter ends on December 31. The interim closing dates for the first, second and third quarters of 2017 are April 1, July 1, and September 30, compared to the respective April 2, July 2, and October 1, 2016 dates. We had two less days in the first quarter of 2017 and will have one more day in the fourth quarter of 2017 than in the respective 2016 periods. |
New Accounting Pronouncements | In May 2014, and as subsequently amended, the Financial Accounting Standards Board (the "FASB") issued a new standard on revenue recognition that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The new standard requires a number of disclosures intended to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue, and the related cash flows. The standard is effective for interim and annual reporting periods beginning after December 15, 2017. We plan to adopt the new revenue standard in the first quarter of 2018 using the modified retrospective adoption method and continue to evaluate the potential impacts to our revenues related to our pending adoption of the new revenue standard. Amongst other impacts, the amended revenue recognition guidance has the potential to affect our current practice of accounting for certain contracts as revenue using the completed contract method under existing guidance in instances where such contracts are determined to have multiple performance obligations that are distinct within the context of the contract. Likewise, in certain contracts of specific product lines, we engineer and manufacture goods that may have no alternative use (absent significant costs to reengineer the goods) and we have an enforceable right to payment for our performance over the life of the project. For such contracts, we may be required to recognize revenue over time under the new guidance as compared with our current practice of using the completed contract method. In addition, we are reviewing our accounting policies to determine whether any changes may be necessary in order to ensure proper recognition of such obligations that we consider perfunctory in nature and/or qualitatively and quantitatively immaterial under existing revenue guidance, but which may be considered significant within the context of the contract under the new revenue standard. Our preliminary assessments of the potential impacts of the new revenue recognition standard are subject to change. In January 2016, the FASB issued an amendment to existing guidance which revises entities’ accounting related to: (i) the classification and measurement of investments in equity securities, and (ii) the presentation of certain fair value changes for financial liabilities measured at fair value. The amendment also changes certain disclosure requirements associated with the fair value of financial instruments. The amended guidance is effective for interim and annual reporting periods beginning after December 15, 2017 and requires a modified retrospective approach to adoption. Early adoption is only permitted for a provision related to instrument-specific credit risk. We are currently evaluating the effect that this amendment will have on our condensed consolidated financial statements. In February 2016, the FASB issued a new standard which requires a lessee to recognize on its balance sheet the assets and liabilities associated with the rights and obligations created by leases with terms that exceed twelve months. Leases will continue to be classified as either financing or operating, with classification affecting the recognition, measurement and presentation of costs and cash flows arising from a lease. The new guidance is effective for interim and annual reporting periods beginning after December 15, 2018 and requires a modified retrospective approach to adoption for lessees related to capital and operating leases existing at, or entered into after, the earliest comparative period presented in the financial statements, with certain practical expedients available. Early adoption is permitted. We are currently evaluating the effect that this new standard will have on our condensed consolidated financial statements. In March 2016, the FASB issued an amendment to clarify that a change in the counterparty to a derivative instrument that has been designated as a hedging instrument does not, in and of itself, require de-designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. The amendment is effective for interim and annual reporting periods beginning after December 15, 2016 and may be applied on either a prospective or modified retrospective basis. The impact of the prospective adoption of this amendment had no effect on our first quarter 2017 condensed consolidated financial statements. In March 2016, the FASB issued an amendment which simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, classification of awards as either equity or liabilities, as well as classification in the statement of cash flows. This amendment is effective for prospective interim and annual reporting periods beginning after December 15, 2016. We adopted this amendment during the first quarter of 2017. We recognized a tax charge of $1.4 in our income tax provision during the three months ended April 1, 2017 related to the vesting of certain restricted stock shares and restricted stock units during the period which, under previous guidance, would have been recognized as a reduction of paid-in capital. Consistent with our previous policy, we have elected to continue to accrue share-based compensation cost based on the number of awards that are expected to vest (i.e., by assuming a forfeiture rate in our accrual of such cost). See Note 12 for additional information related to our adoption of this amendment. In October 2016, the FASB issued an amendment that requires recognition of the income tax consequences of an intra-entity transfer of assets other than inventory. Under current authoritative guidance, the tax effects of intra-entity asset transfers (intercompany sales) are deferred until the transferred asset is sold to a third party or otherwise recovered through use. This amendment requires tax expense and deferred tax asset recognition from the intra-entity sale of the asset in the seller’s tax jurisdiction when the asset transfer occurs, even though the pre-tax effects of that transaction are eliminated in consolidation. This update is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted, but the guidance can only be adopted in the first interim period of the early-adopt fiscal year. We are currently evaluating the impact that this amended guidance will have on our condensed consolidated financial statements. In November 2016, the FASB issued an additional amendment to guidance for statement of cash flow presentation, which requires that entities explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents in the statement of cash flows. Entities will also be required to reconcile such total to amounts on the balance sheet and disclose the nature of the restrictions. This amendment is effective for interim and annual reporting periods beginning after December 15, 2017, with early adoption permitted, including retrospective application. We expect to adopt this amendment in the first quarter of 2018 and do not expect a material impact to our condensed consolidated financial statements. In January 2017, the FASB issued an amendment to post-acquisition accounting for goodwill which eliminates the requirement to perform a Step 2 impairment analysis to determine the implied fair value of goodwill. Rather, goodwill impairment charges will be calculated as the amount by which a reporting unit's carrying amount exceeds its fair value. This amendment is effective for any annual or interim goodwill impairment tests performed in fiscal years beginning after December 15, 2019, with early adoption permitted. We adopted this amendment in the first quarter of 2017 and will perform our annual goodwill impairment test in accordance with the amended guidance, as well as any interim impairment tests, should facts and circumstances necessitate such a test. In March 2017, the FASB issued an amendment to authoritative guidance on the presentation of net periodic pension and other postretirement benefit costs. Under the new rules, entities that sponsor defined benefit plans will present service costs with other employee compensation costs within operating income (or capitalize on the balance sheet, when applicable), while other components of net benefit cost will be presented separately (in one or more line items) outside of operating income and will not be eligible for capitalization. This update is effective for interim and annual reporting periods beginning after December 15, 2017, with early adoption permitted if adopted in the first interim period of the early-adopt fiscal year. We adopted this amendment in the first quarter of 2017 and have accordingly reclassified non-service pension and postretirement costs from “ Selling, general and administrative ” expense to “ Other expense, net ” in our condensed consolidated statements of operations for the three months ended April 1, 2017 and April 2, 2016, as we believe this classification provides investors a more comparative presentation of our selling, general and administrative expense and operating results from period to period. As permitted by the amended guidance, we used amounts disclosed in our employee benefit plans footnote for the first quarter of 2016 as the estimation basis for applying the restrospective presentation requirements. See Note 7 for additional information related to our adoption of the amendment. |
INFORMATION ON REPORTABLE SEG23
INFORMATION ON REPORTABLE SEGMENTS, CORPORATE EXPENSE AND OTHER (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Segment Reporting [Abstract] | |
Schedule of financial data for reportable segments | Financial data for our reportable segments for the three months ended April 1, 2017 and April 2, 2016 were as follows: Three months ended April 1, 2017 April 2, 2016 Revenues (1) : Food and Beverage $ 165.9 $ 184.8 Power and Energy 105.9 149.7 Industrial 161.4 170.5 Total revenues $ 433.2 $ 505.0 Income (loss): Food and Beverage $ 15.5 $ 17.4 Power and Energy (1.5 ) 2.2 Industrial 21.1 19.4 Total income for reportable segments 35.1 39.0 Corporate expense 15.5 18.9 Pension and postretirement service costs 0.4 0.5 Special charges 8.6 41.0 Consolidated operating income (loss) $ 10.6 $ (21.4 ) (1) We recognized revenues under the percentage-of-completion method of $60.4 and $99.0 in the three months ended April 1, 2017 and April 2, 2016 , respectively. Costs and estimated earnings in excess of billings on contracts accounted for under the percentage-of-completion method were $72.2 and $66.1 as of April 1, 2017 and December 31, 2016 , respectively, and are reported as a component of ‘‘Accounts receivable, net’’ in the condensed consolidated balance sheets. Billings in excess of costs and estimated earnings on uncompleted contracts accounted for under the percentage-of-completion method were $57.9 and $57.2 as of April 1, 2017 and December 31, 2016 , respectively, and are reported as a component of ‘‘Accrued expenses’’ in the condensed consolidated balance sheets. |
SPECIAL CHARGES (Tables)
SPECIAL CHARGES (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Restructuring and Related Activities [Abstract] | |
Schedule of special charges, net | Special charges for the three months ended April 1, 2017 and April 2, 2016 were as follows: Three months ended April 1, 2017 April 2, 2016 Food and Beverage $ 1.5 $ 8.8 Power and Energy 1.0 10.7 Industrial 2.8 4.5 Other 3.3 17.0 Total $ 8.6 $ 41.0 |
Schedule of the analysis of restructuring liabilities | The following is an analysis of our restructuring liabilities for the three months ended April 1, 2017 and April 2, 2016 : Three months ended April 1, 2017 April 2, 2016 Balance at beginning of year $ 33.6 $ 32.9 Special charges (1) 5.0 29.0 Utilization — cash (9.4 ) (6.5 ) Currency translation adjustment and other 0.3 1.0 Balance at end of period $ 29.5 $ 56.4 (1) Amounts that impacted special charges but not the restructuring liabilities included $3.6 and $12.0 of asset impairment and other related charges during the three months ended April 1, 2017 and April 2, 2016 , respectively. |
INVENTORIES, NET (Tables)
INVENTORIES, NET (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories at April 1, 2017 and December 31, 2016 comprised the following: April 1, 2017 December 31, 2016 Finished goods $ 99.1 $ 86.2 Work in process 94.4 74.6 Raw materials and purchased parts 114.8 117.8 Total FIFO cost 308.3 278.6 Excess of FIFO cost over LIFO inventory value (6.0 ) (6.2 ) Total inventories $ 302.3 $ 272.4 |
GOODWILL AND OTHER INTANGIBLE26
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the carrying amount of goodwill, by reportable segment | The changes in the carrying amount of goodwill by reportable segment for the three months ended April 1, 2017 were as follows: December 31, 2016 Impairments Foreign Currency Translation and Other April 1, 2017 Food and Beverage $ 250.3 $ — $ 8.6 $ 258.9 Power and Energy (1) 256.0 — 3.9 259.9 Industrial (2) 216.2 — 3.7 219.9 Total $ 722.5 $ — $ 16.2 $ 738.7 (1) The carrying amount of goodwill included $244.8 and $241.1 of accumulated impairments as of April 1, 2017 and December 31, 2016 , respectively. (2) The carrying amount of goodwill included $67.7 of accumulated impairments as of April 1, 2017 and December 31, 2016 . |
Schedule of finite-lived intangible assets | Identifiable intangible assets were as follows: April 1, 2017 December 31, 2016 Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value Intangible assets with determinable lives: Customer relationships $ 214.0 $ (107.2 ) $ 106.8 $ 209.6 $ (101.6 ) $ 108.0 Technology 87.3 (43.6 ) 43.7 84.6 (40.8 ) 43.8 Patents 6.7 (4.9 ) 1.8 6.5 (5.1 ) 1.4 Other 12.7 (10.0 ) 2.7 12.3 (9.6 ) 2.7 320.7 (165.7 ) 155.0 313.0 (157.1 ) 155.9 Trademarks with indefinite lives 190.6 — 190.6 188.4 — 188.4 Total $ 511.3 $ (165.7 ) $ 345.6 $ 501.4 $ (157.1 ) $ 344.3 |
Schedule of indefinite-lived intangible assets | Identifiable intangible assets were as follows: April 1, 2017 December 31, 2016 Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value Intangible assets with determinable lives: Customer relationships $ 214.0 $ (107.2 ) $ 106.8 $ 209.6 $ (101.6 ) $ 108.0 Technology 87.3 (43.6 ) 43.7 84.6 (40.8 ) 43.8 Patents 6.7 (4.9 ) 1.8 6.5 (5.1 ) 1.4 Other 12.7 (10.0 ) 2.7 12.3 (9.6 ) 2.7 320.7 (165.7 ) 155.0 313.0 (157.1 ) 155.9 Trademarks with indefinite lives 190.6 — 190.6 188.4 — 188.4 Total $ 511.3 $ (165.7 ) $ 345.6 $ 501.4 $ (157.1 ) $ 344.3 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of net periodic benefit expense (income) | Net periodic benefit expense (income) for our foreign pension plans and our domestic pension and postretirement plans included the following components: Foreign Pension Plans Domestic Pension and Postretirement Plans Total Statement of Operations Caption in Which Expense (Income) is Reported Three months ended April 1, 2017 April 2, 2016 April 1, 2017 April 2, 2016 April 1, 2017 April 2, 2016 Service cost $ 0.2 0.3 $ 0.2 $ 0.2 $ 0.4 $ 0.5 Selling, general and administrative Interest cost 0.1 0.2 0.2 0.3 0.3 0.5 Other expense, net Curtailment gain (1) (1.1 ) — — — (1.1 ) — Other expense, net Total net periodic benefit expense (income) $ (0.8 ) $ 0.5 $ 0.4 $ 0.5 $ (0.4 ) $ 1.0 (1) Gain is related to the cessation of accrual of future benefits by participants in a defined benefit pension plan in the Netherlands effective March 31, 2017. The accumulated obligations for future pension payments to participants in this plan were also transferred to an insurance company at that time. Under the agreement, the insurance company irrevocably assumed the obligation to make future pension payments to the approximately 60 participants of the plan. |
INDEBTEDNESS (Tables)
INDEBTEDNESS (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of debt | Debt at April 1, 2017 and December 31, 2016 comprised the following: April 1, 2017 December 31, 2016 Domestic revolving loan facility $ 24.0 $ 68.0 Term loan (1) 385.0 390.0 5.625% senior notes, due in August 2024 300.0 300.0 5.875% senior notes, due in August 2026 300.0 300.0 Trade receivables financing arrangement 23.4 21.2 Other indebtedness (2) 35.3 42.4 Less: deferred financing fees (3) (12.3 ) (12.8 ) Total debt 1,055.4 1,108.8 Less: short-term debt 19.9 27.7 Less: current maturities of long-term debt 20.3 20.2 Total long-term debt $ 1,015.2 $ 1,060.9 (1) The term loan, which had an initial principal balance of $400.0 , is repayable in quarterly installments of 5.0% annually which began with our third quarter of 2016, with the remaining balance repayable in full on September 24, 2020. (2) Primarily includes capital lease obligations of $15.4 and $14.7 and balances under a purchase card program of $17.4 and $17.9 as of April 1, 2017 and December 31, 2016 , respectively. The purchase card program allows for payment beyond customary payment terms for goods and services acquired under the program. As this arrangement extends the payment of these purchases beyond their normal payment terms through third-party lending institutions, we have classified these amounts as short-term debt. (3) Deferred financing fees were comprised of fees related to the term loan and senior notes. |
EQUITY AND STOCK-BASED COMPEN29
EQUITY AND STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Equity [Abstract] | |
Schedule of weighted average shares outstanding used in computation of basic and diluted income (loss) per share | The following table sets forth the number of weighted average shares outstanding used in the computation of basic and diluted loss per share: Three months ended April 1, 2017 April 2, 2016 Weighted-average shares outstanding, basic 41.647 41.232 Dilutive effect of share-based awards — — Weighted-average shares outstanding, dilutive (1) 41.647 41.232 (1) For the three months ended April 1, 2017 and April 2, 2016 , respectively, an aggregate of 0.943 and 0.861 unvested restricted stock shares, restricted stock units, and stock options outstanding were excluded from the computation of diluted loss per share as we incurred a net loss during the periods. For three three months ended April 1, 2017 and April 2, 2016 , the number of anti-dilutive unvested restricted stock shares and restricted stock units outstanding excluded from the computation of diluted loss per share was 0.166 and 0.579 , respectively. |
Schedule of compensation expense related to share-based programs recognized in selling, general and administrative expense | For the three months ended April 1, 2017 and April 2, 2016 , we recognized compensation expense related to share-based programs in “Selling, general and administrative” expense in the accompanying condensed consolidated statements of operations as follows: Three months ended April 1, 2017 April 2, 2016 (1) Stock-based compensation expense $ 4.0 $ 6.9 Income tax benefit (1.3 ) (2.4 ) Stock-based compensation expense, net of income tax benefit $ 2.7 $ 4.5 (1) Stock-based compensation expense includes $0.3 of expense related to modifications effected as of Spin-Off date. |
Summary of assumptions used in determining fair value | The following assumptions were used in determining the fair value of the awards granted on the date indicated below: Annual Expected Stock Price Volatility Annual Expected Dividend Yield Risk-free Interest Rate Correlations Between Total Shareholder Return for SPX FLOW and Individual Companies in the Composite Group Minimum Average Maximum January 13, 2017: SPX FLOW 39.4 % — % 1.50 % 0.1848 0.3830 0.5057 Composite Group 28.6 % n/a 1.50 % |
Summary of restricted stock share and restricted stock unit activity | The following table summarizes the unvested restricted stock share and restricted stock unit activity for the three months ended April 1, 2017 : Unvested Restricted Stock Shares and Restricted Stock Units Weighted-Average Grant-Date Fair Value Per Share Outstanding at December 31, 2016 1.275 $37.89 Granted 0.460 35.03 Vested (0.286) 44.82 Forfeited and other (0.239) 31.17 Outstanding at April 1, 2017 1.210 $32.44 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Fair Value Disclosures [Abstract] | |
Reconciliation of investments in equity securities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | The table below presents a reconciliation of our investment in equity securities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended April 1, 2017 and April 2, 2016 , including net unrealized gains (losses) recorded to “Other expense, net.” Three months ended April 1, 2017 April 2, 2016 Balance at beginning of year $ 7.6 $ 8.1 Unrealized gains (losses) recorded to earnings (1.4 ) 0.1 Balance at end of period $ 6.2 $ 8.2 |
Estimated fair values of other financial liabilities not measured at fair value on a recurring basis | The estimated fair values of other financial liabilities (excluding capital leases and deferred financing fees) not measured at fair value on a recurring basis as of April 1, 2017 and December 31, 2016 were as follows: April 1, 2017 December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value Domestic revolving loan facility $ 24.0 $ 24.0 $ 68.0 $ 68.0 Term loan (1) 385.0 385.0 390.0 390.0 5.625% Senior notes (1) 300.0 300.0 300.0 300.0 5.875% Senior notes (1) 300.0 300.0 300.0 296.3 Trade receivables financing arrangement 23.4 23.4 21.2 21.2 Other indebtedness 19.9 19.9 27.7 27.7 (1) Carrying amount reflected herein excludes related deferred financing fees. |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) | 3 Months Ended |
Apr. 01, 2017segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of business segments | 3 |
NEW ACCOUNTING PRONOUNCEMENTS -
NEW ACCOUNTING PRONOUNCEMENTS - (Details) $ in Millions | 3 Months Ended |
Apr. 01, 2017USD ($) | |
Accounting Policies [Abstract] | |
Tax charge related to the vesting of certain restricted stock shares and restricted stock units | $ 1.4 |
INFORMATION ON REPORTABLE SEG33
INFORMATION ON REPORTABLE SEGMENTS, CORPORATE EXPENSE AND OTHER - Narrative (Details) | 3 Months Ended |
Apr. 01, 2017segmentcountry | |
Segment Reporting [Abstract] | |
Number of countries in which entity operates (more than) | 30 |
Number of countries in which entity sells its products and services (more than) | 150 |
Number of reportable segments | segment | 3 |
INFORMATION ON REPORTABLE SEG34
INFORMATION ON REPORTABLE SEGMENTS, CORPORATE EXPENSE AND OTHER - Financial Data for Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 01, 2017 | Apr. 02, 2016 | Dec. 31, 2016 | |
Revenues: | |||
Total revenues | $ 433.2 | $ 505 | |
Income (loss): | |||
Total income for reportable segments | 10.6 | (21.4) | |
Special charges | 8.6 | 41 | |
Revenues recognized under percentage of completion method | 60.4 | 99 | |
Costs and estimated earnings in excess of billings on contracts | 72.2 | $ 66.1 | |
Billings in excess of costs and estimated earnings on uncompleted contracts | 57.9 | $ 57.2 | |
Reporting segments | |||
Revenues: | |||
Total revenues | 433.2 | 505 | |
Income (loss): | |||
Total income for reportable segments | 35.1 | 39 | |
Reporting segments | Food and Beverage | |||
Revenues: | |||
Total revenues | 165.9 | 184.8 | |
Income (loss): | |||
Total income for reportable segments | 15.5 | 17.4 | |
Special charges | 1.5 | 8.8 | |
Reporting segments | Power and Energy | |||
Revenues: | |||
Total revenues | 105.9 | 149.7 | |
Income (loss): | |||
Total income for reportable segments | (1.5) | 2.2 | |
Special charges | 1 | 10.7 | |
Reporting segments | Industrial | |||
Revenues: | |||
Total revenues | 161.4 | 170.5 | |
Income (loss): | |||
Total income for reportable segments | 21.1 | 19.4 | |
Special charges | 2.8 | 4.5 | |
Other | |||
Income (loss): | |||
Corporate expense | 15.5 | 18.9 | |
Special charges | 3.3 | 17 | |
Segment reconciling items | |||
Income (loss): | |||
Pension and postretirement service costs | 0.4 | 0.5 | |
Special charges | $ 8.6 | $ 41 |
SPECIAL CHARGES - Schedule (Det
SPECIAL CHARGES - Schedule (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||
Special charges | $ 8.6 | $ 41 |
Reporting segments | Food and Beverage | ||
Restructuring Cost and Reserve [Line Items] | ||
Special charges | 1.5 | 8.8 |
Reporting segments | Power and Energy | ||
Restructuring Cost and Reserve [Line Items] | ||
Special charges | 1 | 10.7 |
Reporting segments | Industrial | ||
Restructuring Cost and Reserve [Line Items] | ||
Special charges | 2.8 | 4.5 |
Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Special charges | $ 3.3 | $ 17 |
SPECIAL CHARGES - Narrative (De
SPECIAL CHARGES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||
Expected charges to be incurred | $ 1.7 | |
Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Asset impairment charges | $ 3.6 | $ 12 |
SPECIAL CHARGES - Analysis of R
SPECIAL CHARGES - Analysis of Restructuring Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
Restructuring Liabilities | ||
Balance at beginning of year | $ 33.6 | $ 32.9 |
Special charges | 5 | 29 |
Utilization — cash | (9.4) | (6.5) |
Currency translation adjustment and other | 0.3 | 1 |
Balance at end of period | 29.5 | 56.4 |
Other | ||
Restructuring Liabilities | ||
Asset impairment and non-cash charges | $ 3.6 | $ 12 |
INVENTORIES, NET (Details)
INVENTORIES, NET (Details) - USD ($) $ in Millions | Apr. 01, 2017 | Dec. 31, 2016 |
Inventory, Net [Abstract] | ||
Finished goods | $ 99.1 | $ 86.2 |
Work in process | 94.4 | 74.6 |
Raw materials and purchased parts | 114.8 | 117.8 |
Total FIFO cost | 308.3 | 278.6 |
Excess of FIFO cost over LIFO inventory value | (6) | (6.2) |
Total inventories | $ 302.3 | $ 272.4 |
Domestic inventories, valued using the last-in, first-out method, as a percentage of total inventory | 6.00% | 6.00% |
GOODWILL AND OTHER INTANGIBLE39
GOODWILL AND OTHER INTANGIBLE ASSETS - Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2017 | Dec. 31, 2016 | |
Changes in the carrying amount of goodwill | ||
Beginning Balance | $ 722.5 | |
Impairments | 0 | |
Foreign Currency Translation and Other | 16.2 | |
Ending Balance | 738.7 | |
Food and Beverage | ||
Changes in the carrying amount of goodwill | ||
Beginning Balance | 250.3 | |
Impairments | 0 | |
Foreign Currency Translation and Other | 8.6 | |
Ending Balance | 258.9 | |
Power and Energy | ||
Changes in the carrying amount of goodwill | ||
Beginning Balance | 256 | |
Impairments | 0 | |
Foreign Currency Translation and Other | 3.9 | |
Ending Balance | 259.9 | |
Accumulated impairment included in carrying amount of goodwill | 244.8 | $ 241.1 |
Industrial | ||
Changes in the carrying amount of goodwill | ||
Beginning Balance | 216.2 | |
Impairments | 0 | |
Foreign Currency Translation and Other | 3.7 | |
Ending Balance | 219.9 | |
Accumulated impairment included in carrying amount of goodwill | $ 67.7 | $ 67.7 |
GOODWILL AND OTHER INTANGIBLE40
GOODWILL AND OTHER INTANGIBLE ASSETS - Identifiable Intangible Assets (Details) - USD ($) $ in Millions | Apr. 01, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 320.7 | $ 313 |
Accumulated Amortization | (165.7) | (157.1) |
Net Carrying Value | 155 | 155.9 |
Total gross carrying value | 511.3 | 501.4 |
Total net carrying value | 345.6 | 344.3 |
Trademarks with indefinite lives | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Trademarks with indefinite lives | 190.6 | 188.4 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 214 | 209.6 |
Accumulated Amortization | (107.2) | (101.6) |
Net Carrying Value | 106.8 | 108 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 87.3 | 84.6 |
Accumulated Amortization | (43.6) | (40.8) |
Net Carrying Value | 43.7 | 43.8 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 6.7 | 6.5 |
Accumulated Amortization | (4.9) | (5.1) |
Net Carrying Value | 1.8 | 1.4 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 12.7 | 12.3 |
Accumulated Amortization | (10) | (9.6) |
Net Carrying Value | $ 2.7 | $ 2.7 |
GOODWILL AND OTHER INTANGIBLE41
GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details) - USD ($) | Oct. 02, 2016 | Apr. 01, 2017 | Apr. 02, 2016 | Dec. 31, 2016 |
Goodwill [Line Items] | ||||
Discount rate | 10.50% | |||
Net carrying value of intangible assets with determinable lives | $ 155,000,000 | $ 155,900,000 | ||
Impairment charges recorded | 0 | $ 0 | ||
Trademarks with indefinite lives | ||||
Goodwill [Line Items] | ||||
Trademarks with indefinite lives | 190,600,000 | $ 188,400,000 | ||
Minimum | ||||
Goodwill [Line Items] | ||||
Rate at which revenue is expected to decline | 10.00% | |||
Maximum | ||||
Goodwill [Line Items] | ||||
Rate at which revenue is expected to decline | 15.00% | |||
Power and Energy | ||||
Goodwill [Line Items] | ||||
Percentage by which the fair value exceeded the carrying value | 4.00% | |||
Effect of one-hundred basis point increase on carrying value | $ (27,000,000) | |||
Net carrying value of intangible assets with determinable lives | 74,600,000 | |||
Power and Energy | Trademarks with indefinite lives | ||||
Goodwill [Line Items] | ||||
Trademarks with indefinite lives | 33,500,000 | |||
Food and Beverage | ||||
Goodwill [Line Items] | ||||
Net carrying value of intangible assets with determinable lives | 54,700,000 | |||
Food and Beverage | Trademarks with indefinite lives | ||||
Goodwill [Line Items] | ||||
Trademarks with indefinite lives | 97,200,000 | |||
Industrial | ||||
Goodwill [Line Items] | ||||
Net carrying value of intangible assets with determinable lives | 25,700,000 | |||
Industrial | Trademarks with indefinite lives | ||||
Goodwill [Line Items] | ||||
Trademarks with indefinite lives | $ 59,900,000 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) $ in Millions | 3 Months Ended | ||
Apr. 01, 2017USD ($) | Apr. 02, 2016USD ($) | Mar. 31, 2017participant | |
Employee Benefit Plans | |||
Service cost | $ 0.4 | $ 0.5 | |
Interest cost | 0.3 | 0.5 | |
Curtailment gain | (1.1) | 0 | |
Total net periodic benefit expense (income) | (0.4) | 1 | |
Foreign Pension Plans | |||
Employee Benefit Plans | |||
Service cost | 0.2 | 0.3 | |
Interest cost | 0.1 | 0.2 | |
Curtailment gain | (1.1) | 0 | |
Total net periodic benefit expense (income) | (0.8) | 0.5 | |
Foreign Pension Plans | Netherlands | |||
Employee Benefit Plans | |||
Number of participants of the plan | participant | 60 | ||
Domestic Pension and Postretirement Plans | |||
Employee Benefit Plans | |||
Service cost | 0.2 | 0.2 | |
Interest cost | 0.2 | 0.3 | |
Curtailment gain | 0 | 0 | |
Total net periodic benefit expense (income) | 0.4 | 0.5 | |
Pension plan | |||
Employee Benefit Plans | |||
Domestic pension payments | $ 0.1 | $ 0.1 |
INDEBTEDNESS - Schedule of Debt
INDEBTEDNESS - Schedule of Debt (Details) - USD ($) | 3 Months Ended | |
Apr. 01, 2017 | Dec. 31, 2016 | |
Short-term Debt [Line Items] | ||
Short-term debt | $ 19,900,000 | $ 27,700,000 |
Other indebtedness | 35,300,000 | 42,400,000 |
Debt Instrument [Line Items] | ||
Less: deferred financing fees | (12,300,000) | (12,800,000) |
Long-term debt and capital lease obligations | 1,055,400,000 | 1,108,800,000 |
Less: current maturities of long-term debt | 20,300,000 | 20,200,000 |
Total long-term debt | 1,015,200,000 | 1,060,900,000 |
Trade receivables financing arrangement | ||
Short-term Debt [Line Items] | ||
Short-term debt | 23,400,000 | 21,200,000 |
Other indebtedness | 17,400,000 | 17,900,000 |
Capital lease obligations | ||
Short-term Debt [Line Items] | ||
Other indebtedness | 15,400,000 | 14,700,000 |
Domestic revolving loan facility | ||
Debt Instrument [Line Items] | ||
Domestic revolving loan facility | 24,000,000 | 68,000,000 |
Term loan | ||
Debt Instrument [Line Items] | ||
Domestic revolving loan facility | 385,000,000 | 390,000,000 |
Aggregate principal amount | $ 400,000,000 | |
Percentage of face amount repayable annually | 5.00% | |
Senior notes | 5.625% senior notes, due in August 2024 | ||
Debt Instrument [Line Items] | ||
Domestic revolving loan facility | $ 300,000,000 | 300,000,000 |
Stated interest rate | 5.625% | |
Senior notes | 5.875% senior notes, due in August 2026 | ||
Debt Instrument [Line Items] | ||
Domestic revolving loan facility | $ 300,000,000 | $ 300,000,000 |
Stated interest rate | 5.875% |
INDEBTEDNESS - Narrative (Detai
INDEBTEDNESS - Narrative (Details) - USD ($) | Apr. 01, 2017 | Dec. 31, 2016 |
Line of Credit Facility [Line Items] | ||
Short-term debt | $ 19,900,000 | $ 27,700,000 |
Trade receivables financing arrangement | ||
Line of Credit Facility [Line Items] | ||
Available borrowing capacity | 10,000,000 | |
Short-term debt | 23,400,000 | 21,200,000 |
Maximum borrowing amount | 50,000,000 | |
Domestic revolving loan facility | ||
Line of Credit Facility [Line Items] | ||
Domestic revolving loan facility | 24,000,000 | $ 68,000,000 |
Foreign line of credit | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing amount | 5,200,000 | |
Secured debt | Letter of credit | ||
Line of Credit Facility [Line Items] | ||
Outstanding letters of credit | 9,100,000 | |
Secured debt | Foreign line of credit | ||
Line of Credit Facility [Line Items] | ||
Available borrowing capacity | 286,900,000 | |
Outstanding letters of credit | $ 213,100,000 | |
Secured debt | Senior credit facility | ||
Line of Credit Facility [Line Items] | ||
Weighted average interest rate of outstanding borrowings | 3.80% | |
Available borrowing capacity | $ 416,900,000 |
DERIVATIVE FINANCIAL INSTRUME45
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Apr. 01, 2017 | Apr. 02, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative [Line Items] | ||||
Unrealized gains (losses), net of tax, recorded in AOCI | $ 0 | $ 0 | ||
FX forward contracts | ||||
Derivative [Line Items] | ||||
Aggregate notional amount | $ 23,500,000 | $ 28,000,000 | ||
Period contracts are scheduled to mature | 1 year | 1 year | ||
Unrealized gains (losses), net of tax, recorded in AOCI | $ (100,000) | $ (100,000) | ||
FX embedded derivatives | ||||
Derivative [Line Items] | ||||
Aggregate notional amount | $ 19,300,000 | $ 21,400,000 | ||
Derivative contracts with scheduled maturities within one year | 19,100,000 | |||
Derivative contracts with scheduled maturities within two years | 200,000 | |||
Forward contracts | ||||
Derivative [Line Items] | ||||
Fair value of derivative contract, gross assets | 2,500,000 | |||
Fair value of derivative contract, gross assets setoff | 2,900,000 | |||
Fair value of derivative contract, gross liabilities | 100,000 | |||
Fair value of derivative contract, gross liabilities setoff | $ 100,000 | |||
Forward contracts | Other income (expense), net | ||||
Derivative [Line Items] | ||||
Net gains (losses) recorded in other income (expense), net | $ (1,800,000) | $ (3,200,000) |
EQUITY AND STOCK-BASED COMPEN46
EQUITY AND STOCK-BASED COMPENSATION - Loss Per Share (Details) - shares shares in Thousands | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | ||
Weighted-average shares outstanding, basic (in shares) | 41,647 | 41,232 |
Dilutive effect of share-based awards (in shares) | 0 | 0 |
Weighted-average shares outstanding, dilutive (in shares) | 41,647 | 41,232 |
Restricted stock shares/Restricted stock units/Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Securities not included in computation of diluted income per share (in shares) | 943 | 861 |
Restricted stock shares/Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Securities not included in computation of diluted income per share (in shares) | 166 | 579 |
EQUITY AND STOCK-BASED COMPEN47
EQUITY AND STOCK-BASED COMPENSATION - Stock-Based Compensation (Details) - USD ($) shares in Thousands, $ in Millions | Sep. 26, 2015 | Apr. 01, 2017 | Apr. 02, 2016 | Dec. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Award's requisite service period | 3 years | |||
Stock Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares available for future grants (up to) (in shares) | 1,345 | |||
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of shares equivalent to minimum vesting | 50.00% | |||
Compensation expense | $ 0.3 | |||
Unrecognized compensation cost | $ 0.9 | |||
Restricted stock units | Non-officer employees | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Restricted stock shares and restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | $ 26.8 | |||
Vesting period | 3 years | |||
Fair value assumptions, expected volatility rate, period of historical volatility | 3 years | |||
Restricted stock shares and restricted stock units | Early retirement provision | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 10 years | |||
Eligible for vesting, age | 60 years | |||
Restricted stock shares and restricted stock units | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of shares equivalent to minimum vesting | 50.00% | |||
Restricted stock shares and restricted stock units | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of shares equivalent to minimum vesting | 150.00% | |||
Restricted stock shares and restricted stock units | Non-employee directors | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 1 year | |||
Restricted stock shares and restricted stock units | Officers | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Restricted stock shares | Officers | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Award's requisite service period | 3 years |
EQUITY AND STOCK-BASED COMPEN48
EQUITY AND STOCK-BASED COMPENSATION - Compensation Expense Related to Share-based Programs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expense related to modifications | $ 0.3 | |
Selling, general and administrative expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 4 | 6.9 |
Income tax benefit | (1.3) | (2.4) |
Stock-based compensation expense, net of income tax benefit | $ 2.7 | 4.5 |
Selling, general and administrative expenses | Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expense related to modifications | $ 0.3 |
EQUITY AND STOCK-BASED COMPEN49
EQUITY AND STOCK-BASED COMPENSATION - Restricted Stock Share and Restricted Stock Unit Awards (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | Jan. 13, 2017 | Apr. 01, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Restricted stock shares and restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Annual Expected Stock Price Volatility | 39.40% | |
Annual Expected Dividend Yield | 0.00% | |
Risk-free Interest Rate | 1.50% | |
Vesting period | 3 years | |
Weighted-Average Grant-Date Fair Value Per Share | ||
Unrecognized compensation cost | $ 26.8 | |
Weighted-average period cost expected to be recognized | 2 years 11 days | |
Restricted stock shares and restricted stock units | Composite Group | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Annual Expected Stock Price Volatility | 28.60% | |
Risk-free Interest Rate | 1.50% | |
Restricted stock shares and restricted stock units | SPX | ||
Unvested Restricted Stock Shares and Restricted Stock Units | ||
Outstanding at beginning of year (in shares) | 1,275 | |
Granted (in shares) | 460 | |
Vested (in shares) | (286) | |
Forfeited and other (in shares) | (239) | |
Outstanding at the end of period (in shares) | 1,210 | |
Weighted-Average Grant-Date Fair Value Per Share | ||
Outstanding at beginning of year (in dollars per share) | $ 37.89 | |
Granted (in dollars per share) | 35.03 | |
Vested (in dollars per share) | 44.82 | |
Forfeited and other (in dollars per share) | 31.17 | |
Outstanding at the end of period (in dollars per share) | $ 32.44 | |
Restricted stock shares and restricted stock units | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Correlations Between Total Shareholder Return for SPX FLOW and Individual Companies in the Composite Group (in dollars per share) | $ 0.1848 | |
Restricted stock shares and restricted stock units | Average | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Correlations Between Total Shareholder Return for SPX FLOW and Individual Companies in the Composite Group (in dollars per share) | 0.3830 | |
Restricted stock shares and restricted stock units | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Correlations Between Total Shareholder Return for SPX FLOW and Individual Companies in the Composite Group (in dollars per share) | $ 0.5057 |
EQUITY AND STOCK-BASED COMPEN50
EQUITY AND STOCK-BASED COMPENSATION - Stock Options (Details) - Stock options - SPX FLOW stock options - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | ||
Apr. 01, 2017 | Dec. 31, 2015 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options outstanding (in shares) | 365 | 371 | |
Forfeitures during the period | 6 | ||
Number of shares exercisable (in shares) | 333 | ||
Weighted-average exercise price per share (in dollars per share) | $ 61.29 | ||
Weighted-average grant-date fair value (in dollars per share) | $ 19.33 | ||
Unrecognized compensation cost | $ 0.3 | ||
Unrecognized compensation cost, period for recognition | 9 months 30 days |
EQUITY AND STOCK-BASED COMPEN51
EQUITY AND STOCK-BASED COMPENSATION - Accumulated Other Comprehensive Loss and Stock in Treasury (Details) - USD ($) | 3 Months Ended | |||
Apr. 01, 2017 | Apr. 02, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Unrealized gain (loss) related to FX forward contracts | $ 12,100,000 | $ 12,100,000 | ||
Unrealized gains (losses), net of tax, recorded in AOCI (less than) | $ 0 | $ 0 | ||
Common Stock in Treasury | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Common stock surrendered as a means of funding income tax withholding requirements | $ 3,300,000 | 2,600,000 | ||
FX forward contracts | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Unrealized gains (losses), net of tax, recorded in AOCI (less than) | $ (100,000) | $ (100,000) |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | ||
Apr. 01, 2017 | Apr. 02, 2016 | Apr. 01, 2018 | |
Valuation Allowance [Line Items] | |||
Unrecognized tax benefits | $ 14,500,000 | ||
Unrecognized tax benefits, net | 5,500,000 | ||
Unrecognized tax benefits that would impact effective tax rate | 5,500,000 | ||
Unrecognized tax benefits, interest on income taxes accrued | 1,900,000 | ||
Unrecognized tax benefits, interest on income taxes accrued, net | 1,800,000 | ||
Unrecognized tax benefits, accrual for penalties | 0 | ||
Reasonably possible decrease in unrecognized tax benefits | 1,000,000 | ||
Income tax provision (benefit) | (100,000) | $ (6,700,000) | |
Pre-tax income (loss) | $ (7,400,000) | $ (38,800,000) | |
Effective income tax rate | (1.40%) | 17.30% | |
Tax charge related to the vesting of certain restricted stock shares and restricted stock units | $ 1,400,000 | ||
Charges related to pre-tax losses | $ 5,200,000 | ||
Forecast | |||
Valuation Allowance [Line Items] | |||
Unrecognized tax benefits | $ 3,000,000 |
FAIR VALUE - Derivative Financi
FAIR VALUE - Derivative Financial Instruments (Details) - Forward contracts - USD ($) $ in Millions | Apr. 01, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||
Fair value of derivative contract, gross assets | $ 2.5 | |
Fair value of derivative contract, gross assets setoff | $ 2.9 | |
Fair value of derivative contract, gross liabilities | $ 0.1 | |
Fair value of derivative contract, gross liabilities setoff | $ 0.1 |
FAIR VALUE - Equity Security In
FAIR VALUE - Equity Security Investment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
Fair Value Disclosures [Abstract] | ||
Fair value of Level 3 assets | $ 7.6 | $ 8.1 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of year | 7.6 | 8.1 |
Unrealized gains (losses) recorded to earnings | (1.4) | 0.1 |
Balance at end of period | $ 6.2 | $ 8.2 |
FAIR VALUE - Indebtedness and O
FAIR VALUE - Indebtedness and Other (Details) - USD ($) $ in Millions | Apr. 01, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other indebtedness | $ 19.9 | $ 27.7 |
Trade receivables financing arrangement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other indebtedness | 23.4 | 21.2 |
Domestic revolving loan facility | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Domestic revolving loan facility | 24 | 68 |
Senior notes | 5.625% senior notes, due in August 2024 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Domestic revolving loan facility | $ 300 | 300 |
Stated interest rate | 5.625% | |
Senior notes | 5.875% senior notes, due in August 2026 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Domestic revolving loan facility | $ 300 | 300 |
Stated interest rate | 5.875% | |
Fair value, measurements, nonrecurring | Level 1 | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other indebtedness | $ 19.9 | 27.7 |
Fair value, measurements, nonrecurring | Level 1 | Carrying Amount | Trade receivables financing arrangement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other indebtedness | 23.4 | 21.2 |
Fair value, measurements, nonrecurring | Level 1 | Carrying Amount | Domestic revolving loan facility | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Domestic revolving loan facility | 24 | 68 |
Fair value, measurements, nonrecurring | Level 1 | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other indebtedness | 19.9 | 27.7 |
Fair value, measurements, nonrecurring | Level 1 | Fair Value | Trade receivables financing arrangement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other indebtedness | 23.4 | 21.2 |
Fair value, measurements, nonrecurring | Level 1 | Fair Value | Domestic revolving loan facility | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Domestic revolving loan facility | 24 | 68 |
Fair value, measurements, nonrecurring | Level 2 | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Term loan | 385 | 390 |
Fair value, measurements, nonrecurring | Level 2 | Carrying Amount | Senior notes | 5.625% senior notes, due in August 2024 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior notes | 300 | 300 |
Fair value, measurements, nonrecurring | Level 2 | Carrying Amount | Senior notes | 5.875% senior notes, due in August 2026 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior notes | 300 | 300 |
Fair value, measurements, nonrecurring | Level 2 | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Term loan | 385 | 390 |
Fair value, measurements, nonrecurring | Level 2 | Fair Value | Senior notes | 5.625% senior notes, due in August 2024 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior notes | 300 | 300 |
Fair value, measurements, nonrecurring | Level 2 | Fair Value | Senior notes | 5.875% senior notes, due in August 2026 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior notes | $ 300 | $ 296.3 |