Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 30, 2019 | Apr. 26, 2019 | |
Document and Entity Information | ||
Entity Registrant Name | SPX FLOW, Inc. | |
Entity Central Index Key | 0001641991 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 30, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 42,533,833 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Revenues | $ 491.1 | $ 490.3 |
Cost of products sold | 336.6 | 334.6 |
Gross profit | 154.5 | 155.7 |
Selling, general and administrative | 108.9 | 115.5 |
Intangible amortization | 3.8 | 4.4 |
Restructuring and other related charges | 5 | 2.6 |
Operating income | 36.8 | 33.2 |
Other income (expense), net | 4.7 | (4.6) |
Interest expense, net | (10.7) | (12.5) |
Income before income taxes | 30.8 | 16.1 |
Income tax provision | (10.7) | (0.8) |
Net income | 20.1 | 15.3 |
Less: Net income (loss) attributable to noncontrolling interests | 0.6 | (0.2) |
Net income attributable to SPX FLOW, Inc. | $ 19.5 | $ 15.5 |
Basic income per share of common stock (in dollars per share) | $ 0.46 | $ 0.37 |
Diluted income per share of common stock (in dollars per share) | $ 0.46 | $ 0.36 |
Weighted average number of common shares outstanding - basic (in shares) | 42,452 | 41,978 |
Weighted average number of common shares outstanding - diluted (in shares) | 42,577 | 42,530 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 20.1 | $ 15.3 |
Other comprehensive income (loss), net: | ||
Net unrealized gains on qualifying cash flow hedges, net of tax provision of $0.1 | 0.2 | 0 |
Foreign currency translation adjustments | (8.9) | 40 |
Other comprehensive income (loss), net | (8.7) | 40 |
Total comprehensive income | 11.4 | 55.3 |
Less: Total comprehensive income (loss) attributable to noncontrolling interests | 0.6 | (0.2) |
Total comprehensive income attributable to SPX FLOW, Inc. | $ 10.8 | $ 55.5 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) $ in Millions | 3 Months Ended |
Mar. 30, 2019USD ($) | |
Statement of Comprehensive Income [Abstract] | |
Net unrealized gains on qualifying cash flow hedges, tax provision | $ 0.1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and equivalents | $ 202.2 | $ 213.3 |
Accounts receivable, net | 377.3 | 375.7 |
Contract assets | 69.2 | 69.3 |
Inventories, net | 314.6 | 304.8 |
Other current assets | 39.1 | 44.3 |
Total current assets | 1,002.4 | 1,007.4 |
Property, plant and equipment: | ||
Land | 34.4 | 34.2 |
Buildings and leasehold improvements | 226.5 | 232.1 |
Machinery and equipment | 471.5 | 463.3 |
Property, plant and equipment, gross | 732.4 | 729.6 |
Accumulated depreciation | (404.1) | (394.1) |
Property, plant and equipment, net | 328.3 | 335.5 |
Goodwill | 744.1 | 744.3 |
Intangibles, net | 311.1 | 312.3 |
Other assets | 221.9 | 152.3 |
TOTAL ASSETS | 2,607.8 | 2,551.8 |
Current liabilities: | ||
Accounts payable | 208.3 | 203.7 |
Contract liabilities | 169.5 | 174.9 |
Accrued expenses | 202.7 | 195.3 |
Income taxes payable | 31.7 | 28.2 |
Short-term debt | 24 | 26 |
Current maturities of long-term debt | 20.6 | 21.2 |
Total current liabilities | 656.8 | 649.3 |
Long-term debt | 711.7 | 722.1 |
Deferred and other income taxes | 88.3 | 83.6 |
Other long-term liabilities | 165.7 | 112.2 |
Total long-term liabilities | 965.7 | 917.9 |
Commitments and contingent liabilities (Note 11) | ||
Mezzanine equity | 21.2 | 21.5 |
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, 43,087,886 issued and 42,533,035 outstanding at March 30, 2019, and 42,932,339 issued and 42,542,888 outstanding at December 31, 2018 | 0.4 | 0.4 |
Paid-in capital | 1,665.8 | 1,662.6 |
Accumulated deficit | (254.6) | (265.6) |
Accumulated other comprehensive loss | (439.4) | (430.7) |
Common stock in treasury (554,851 shares at March 30, 2019, and 389,451 shares at December 31, 2018) | (19) | (13.9) |
Total SPX FLOW, Inc. shareholders' equity | 953.2 | 952.8 |
Noncontrolling interests | 10.9 | 10.3 |
Total equity | 964.1 | 963.1 |
TOTAL LIABILITIES, MEZZANINE EQUITY AND EQUITY | $ 2,607.8 | $ 2,551.8 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 30, 2019 | Dec. 31, 2018 |
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) | 43,087,886 | 42,932,339 |
Common stock, shares outstanding (in shares) | 42,533,035 | 42,542,888 |
Common stock in treasury (in shares) | 554,851 | 389,451 |
CONDENSED CONSOLIDATED STATEM_4
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 (in shares) at Dec. 31, 2017 | 42,400,000 | |||||||
Beginning balance at Dec. 31, 2017 | $ 951.8 | $ 942.1 | $ 0.4 | $ 1,650.9 | $ (327.5) | $ (372.8) | $ (8.9) | $ 9.7 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 15.3 | 15.5 | 15.5 | (0.2) | ||||
Other comprehensive income (loss), net | 40 | 40 | 40 | |||||
Incentive plan activity | 2.4 | 2.4 | 2.4 | |||||
Stock-based compensation expense | 5.1 | 5.1 | 5.1 | |||||
Restricted stock and restricted stock unit vesting, net of tax withholdings (in shares) | 100,000 | |||||||
Restricted stock and restricted stock unit vesting, net of tax withholdings | (4) | (4) | (4) | |||||
Dividends attributable to noncontrolling interests | (1) | (1) | ||||||
Ending balance (in shares) at Mar. 31, 2018 | 42,500,000 | |||||||
Ending balance at Mar. 31, 2018 | $ 1,008.1 | 999.6 | $ 0.4 | 1,658.4 | (306.2) | (340.1) | (12.9) | 8.5 |
Beginning balance (in shares) at Dec. 31, 2018 | 42,542,888 | 42,500,000 | ||||||
Beginning balance at Dec. 31, 2018 | $ 963.1 | 952.8 | $ 0.4 | 1,662.6 | (265.6) | (430.7) | (13.9) | 10.3 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 20.1 | 19.5 | 19.5 | 0.6 | ||||
Other comprehensive income (loss), net | (8.7) | (8.7) | (8.7) | |||||
Stock-based compensation expense | 3.2 | 3.2 | 3.2 | |||||
Restricted stock and restricted stock unit vesting, net of tax withholdings | $ (5.1) | (5.1) | (5.1) | |||||
Ending balance (in shares) at Mar. 30, 2019 | 42,533,035 | 42,500,000 | ||||||
Ending balance at Mar. 30, 2019 | $ 964.1 | $ 953.2 | $ 0.4 | $ 1,665.8 | $ (254.6) | $ (439.4) | $ (19) | $ 10.9 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 20.1 | $ 15.3 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Restructuring and other related charges | 5 | 2.6 |
Deferred income taxes | 4.4 | 3.5 |
Depreciation and amortization | 13.8 | 15.1 |
Stock-based compensation | 3.2 | 5.1 |
Pension and other employee benefits | 0.5 | 3.1 |
Loss on asset sales and other, net | 0.1 | 0 |
Gain from investment in equity security | (6.2) | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable and other assets | 10.5 | 14.1 |
Contract assets and liabilities, net | (5.6) | 10.6 |
Inventories | (9.4) | (21.9) |
Accounts payable, accrued expenses and other | (14.2) | (28.1) |
Cash spending on restructuring actions | (0.4) | (3.8) |
Net cash from operating activities | 21.8 | 15.6 |
Cash flows used in investing activities: | ||
Net cash used in investing activities - capital expenditures | (6.9) | (5.2) |
Cash flows used in financing activities: | ||
Borrowings under senior credit facilities | 22 | 19.5 |
Repayments of senior credit facilities | (27) | (54.5) |
Borrowings under trade receivables financing arrangement | 42 | 28 |
Repayments of trade receivables financing arrangement | (42) | (23) |
Repayments of other financing arrangements | (2.1) | (3.1) |
Minimum withholdings paid on behalf of employees for net share settlements, net | (5.1) | (4) |
Dividends paid to noncontrolling interests in subsidiary | 0 | (1) |
Net cash used in financing activities | (12.2) | (38.1) |
Change in cash, cash equivalents and restricted cash due to changes in foreign currency exchange rates | (13.8) | 7.9 |
Net change in cash, cash equivalents and restricted cash | (11.1) | (19.8) |
Consolidated cash, cash equivalents and restricted cash, beginning of period | 214.3 | 264.9 |
Consolidated cash, cash equivalents and restricted cash, end of period | 203.2 | 245.1 |
Reconciliation of cash, cash equivalents and restricted cash from the condensed consolidated balance sheets: | ||
Consolidated cash, cash equivalents and restricted cash, end of period | $ 214.3 | $ 264.9 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION General Matters SPX FLOW, Inc. and its consolidated subsidiaries (“SPX FLOW,” ‘‘the Company,’’ “we,” “us,” or “our”) operate in three business segments: Food and Beverage, Power and Energy, and Industrial. 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 financial statements contained in our 2018 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. Amounts previously captioned “Special Charges” in our condensed consolidated financial statements included in our first quarter 2018 Quarterly Report on Form 10-Q are now reported under the caption “Restructuring and other related charges” to conform to the current year presentation. 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 2019 are March 30, June 29, and September 28, compared to the respective March 31, June 30, and September 29, 2018 dates. We had one less day in the first quarter of 2019 and will have one more day in the fourth quarter of 2019 than in the respective 2018 periods. Revenue Recognition Contract Balances: Contract assets include unbilled amounts typically resulting from sales under contracts recognized over time when the cost-to-cost method of revenue recognition is utilized and revenue recognized exceeds the amount billed to the customer, and right to payment is not just subject to the passage of time. Contract assets are generally classified as current, as we expect to bill the amounts within the next twelve months. Contract liabilities include billings in excess of revenue recognized under contracts recognized over time and advance payments received from customers related to product sales (unearned revenue). We classify contract liabilities generally as a current liability, as we expect to recognize the related revenue within the next twelve months. Our contract assets and liabilities are reported on a contract-by-contract basis at the end of each reporting period. Our contract accounts receivable, assets and liabilities, and changes in such balances, were as follows: March 30, 2019 December 31, 2018 Change (1) % Change Contract accounts receivable (2) $ 367.8 $ 369.8 $ (2.0 ) (0.5 )% Contract assets 69.2 69.3 (0.1 ) (0.1 )% Contract liabilities (169.5 ) (174.9 ) 5.4 (3.1 )% Net contract balance $ 267.5 $ 264.2 $ 3.3 (1) The $3.3 increase in our net contract balance from December 31, 2018 to March 30, 2019 was primarily due to the timing of advance and milestone payments received on certain Food and Beverage and Power and Energy contracts recognized over time, and of performance obligations satisfied and the related revenue recognized on such contracts. (2) Included in “Accounts receivable, net” in our condensed consolidated balance sheets. Amounts are presented before consideration of the allowance for uncollectible accounts. During the three months ended March 30, 2019 , we recognized revenues of $68.9 related to contract liabilities outstanding as of December 31, 2018 . Remaining Performance Obligations: Remaining performance obligations represent the transaction price of orders for which (i) control of goods or services has not been transferred to the customer or we have not otherwise met our performance obligations, or (ii) where revenue is accounted for over time, proportional costs have not yet been incurred. Such remaining performance obligations exclude unexercised contract options and potential orders under “blanket order” contracts (e.g., with indefinite delivery dates or quantities). As of March 30, 2019 , the aggregate amount of our remaining performance obligations was $917.4 . The Company expects to recognize revenue on approximately 88% and substantially all of our remaining performance obligations within the next 12 and 24 months, respectively. |
NEW ACCOUNTING PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | NEW ACCOUNTING PRONOUNCEMENTS The following is a summary of new accounting pronouncements that apply or may apply to our business. New Leases Pronouncement Effects of Adoption - In February 2016, and as subsequently amended, the Financial Accounting Standards Board (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. 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. We adopted the standard effective January 1, 2019 using the modified retrospective adoption method which allowed us to initially apply the new standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of accumulated deficit. In connection with our adoption of the new lease pronouncement, we recorded a charge to accumulated deficit of $8.5 , reflecting the effects of (1) an impairment of a right-of-use (“ROU”) asset resulting from the rationalization of a business in our Food and Beverage segment during the fourth quarter of 2018 and, to a lesser extent, (2) the reclassification of a former capital lease to an operating lease. See Note 4 for additional information regarding the rationalization of the Food and Beverage business. We have elected to use the practical expedient package that allows us to not reassess: (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases. We additionally elected to use the practical expedients that allow lessees to: (1) treat the lease and non-lease components of leases as a single lease component for all of our leases and (2) not recognize on our balance sheet leases with terms less than twelve months. We determine if an arrangement is a lease at inception. We lease certain manufacturing facilities, warehouses, administrative offices, sales and service locations, machinery and equipment, vehicles and office equipment under operating leases. Under the new standard, operating leases result in the recognition of ROU assets and lease liabilities on the consolidated balance sheet. ROU assets represent our right to use the leased asset for the lease term and lease liabilities represent our obligation to make lease payments. Under the new standard, operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, upon adoption of the new standard, we used our country-specific estimated incremental borrowing rate based on the information available, including lease term, as of January 1, 2019 to determine the present value of lease payments. Operating lease ROU assets are adjusted for any lease payments made prior to January 1, 2019 and any lease incentives. Certain of our leases may include options to extend or terminate the original lease term. We generally conclude that we are not reasonably certain to exercise these options due primarily to the length of the original lease term and our assessment that economic incentives are not reasonably certain to be realized. Operating lease expense under the new standard is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components and, as noted above, we account for the lease and non-lease components as a single lease component under the new standard. Our current finance lease obligations consist primarily of manufacturing facility leases. Upon adoption of the new standard, we reclassified a single lease from capital to operating based on specific transition requirements for build-to-suit arrangements recognized as capital leases under the prior accounting standard. Upon derecognizing the former capital lease asset and liability, we determined the lease to be operating under the new standard. Refer to the “Summary of Effects of Lease Accounting Standard Update Adopted in First Quarter of 2019” below for further details. Leases accounted for under the new standard have initial remaining lease terms of one to 15 years. Certain of our lease agreements include rental payments adjusted periodically for inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The components of operating and finance lease ROU assets and liabilities as of March 30, 2019 were as follows: March 30, 2019 Balance Sheet Caption in Which Balance is Reported Finance lease ROU assets $ 3.7 Property, plant and equipment, net Operating lease ROU assets 65.4 Other assets Current portion of operating lease liabilities 20.8 Accrued expenses Current portion of finance lease liabilities 0.6 Current maturities of long-term debt Long-term finance lease liabilities 3.9 Long-term debt Long-term operating lease liabilities 53.1 Other long-term liabilities The components of lease expense for the three months ended March 30, 2019 were as follows: Three months ended March 30, 2019 Operating lease cost (1) $ 6.1 Finance lease cost: Amortization of leased assets (1) 0.1 Interest on lease liabilities (2) 0.1 Short-term lease cost (1) 0.9 Variable lease cost (1) 0.5 Total lease cost $ 7.7 (1) Included in “ Cost of products sold ” and “ Selling, general and administrative ” in our condensed consolidated statement of operations. (2) Included in “ Interest expense, net ” in our condensed consolidated statement of operations. The future lease payments under operating and finance leases with initial remaining terms in excess of one year as of March 30, 2019 were as follows: Year Ending December 31, Operating leases Finance leases Total 2019 $ 17.6 $ 0.6 $ 18.2 2020 18.4 0.8 19.2 2021 12.9 0.8 13.7 2022 8.9 0.8 9.7 2023 6.5 0.7 7.2 Thereafter 20.6 1.7 22.3 Total lease payments 84.9 5.4 90.3 Less: interest (11.0 ) (0.9 ) (11.9 ) Present value of lease liabilities $ 73.9 $ 4.5 $ 78.4 The future lease payments under operating and capital leases as of December 31, 2018 were as follows: Year Ending December 31, Operating leases Capital leases 2019 $ 23.4 $ 1.6 2020 17.5 1.6 2021 12.1 1.6 2022 7.6 1.6 2023 5.5 1.6 Thereafter 18.0 4.4 Total lease payments $ 84.1 12.4 Less: interest (1.6 ) Present value of lease liabilities $ 10.8 Key assumptions used in accounting for our operating and finance leases as of March 30, 2019 were as follows: March 30, 2019 Weighted-average remaining lease term (years): Operating leases 6.0 Finance leases 6.8 Weighted-average discount rate: Operating leases 4.71 % Finance leases 5.85 % Cash flows and non-cash activities related to our operating and finance leases for the three months ended March 30, 2019 were as follows: Three months ended March 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid for operating leases $ 6.0 Operating cash flows paid for finance leases 0.1 Financing cash flows paid for finance leases 0.3 Non-cash activities: Operating lease ROU assets obtained in exchange for new operating lease liabilities 1.5 Finance lease ROU assets obtained in exchange for new finance lease liabilities 0.6 Summary of Effects of Lease Accounting Standard Update Adopted in First Quarter of 2019 The cumulative effects of the changes made to our condensed consolidated balance sheet as of the beginning of the first quarter of 2019 as a result of the adoption of the accounting standard update on leases were as follows: Effects of adoption of lease accounting standard update related to: Balance Sheet As filed December 31, 2018 Recognition of Operating Leases Reclassification of Capital Lease to Operating Lease Impairment of Operating Lease ROU Asset Total effects of adoption With effect of lease accounting standard update January 1, 2019 Assets Other current assets $ 44.3 $ (1.2 ) $ — $ — $ (1.2 ) $ 43.1 Buildings and leasehold improvements 232.1 — (7.2 ) — (7.2 ) 224.9 Accumulated depreciation (394.1 ) — 0.7 — 0.7 (393.4 ) Other assets 152.3 71.8 5.8 (8.4 ) 69.2 221.5 Liabilities Accrued expenses 195.3 20.2 0.9 — 21.1 216.4 Current maturities of long-term debt 21.2 — (0.7 ) — (0.7 ) 20.5 Long-term debt 722.1 — (6.1 ) — (6.1 ) 716.0 Other long-term liabilities 112.2 50.4 5.3 — 55.7 167.9 Equity Accumulated deficit (265.6 ) — (0.1 ) (8.4 ) (8.5 ) (274.1 ) Other New Accounting Pronouncements In June 2016, and as subsequently amended, the FASB issued an amendment on the measurement of credit losses. This amendment requires companies to estimate all expected credit losses for certain types of financial instruments, including trade receivables, held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. This amendment is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. The Company is evaluating the impact this amendment may have on its condensed consolidated financial statements. In March 2018, the FASB issued an amendment to update the Codification and XBRL Taxonomy as a result of the Tax Cuts and Jobs Act (the “Tax Act”), and to incorporate the Staff Accounting Bulletin 118 (“SAB 118”) as released by the SEC, which provides guidance for companies that are not able to complete their accounting for the income tax effects of the Tax Act in the period of enactment. This amendment is effective for interim and annual reporting periods beginning after December 15, 2018. The Company completed its accounting for the impact of this tax reform legislation as of December 31, 2018. Our adoption of this amendment had no impact on our condensed consolidated financial statements in the first quarter of 2019 . In August 2018, the FASB issued an amendment to modify the disclosure requirements related to fair value measurements. This amendment removes, modifies and adds certain disclosures required under current guidance. For example, the amendment removes the requirements to disclose the amount of and reason for transfers between Level 1 and Level 2 of the fair value hierarchy as well as the policy for timing of transfers between levels, and requires certain additional disclosures related to Level 3 fair value measurements. This amendment is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. The Company is evaluating the impact this amendment may have on its condensed consolidated financial statements. In August 2018, the FASB issued an amendment to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). Amongst other changes in requirements, the amendments in this update also require an entity to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement. This amendment is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. The Company is evaluating the impact this amendment may have on its condensed consolidated financial statements. In August 2018, the FASB issued an amendment to modify the disclosure requirements related to defined benefit plans. This amendment removes, clarifies and adds certain disclosures required under current guidance. For example, the amendment removes the requirement to disclose the effects of a one-percentage point change in assumed health care cost trend rates on postretirement benefit obligations and service and interest cost components of periodic benefit costs, and requires an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. This amendment is effective for interim and annual reporting periods beginning after December 15, 2020, with early adoption permitted. The Company is evaluating the impact this amendment may have on its condensed consolidated financial statements. |
INFORMATION ON REPORTABLE SEGME
INFORMATION ON REPORTABLE SEGMENTS, CORPORATE EXPENSE AND OTHER | 3 Months Ended |
Mar. 30, 2019 | |
Segment Reporting [Abstract] | |
INFORMATION ON REPORTABLE SEGMENTS, CORPORATE EXPENSE AND OTHER | INFORMATION ON REPORTABLE SEGMENTS, CORPORATE EXPENSE AND OTHER We innovate with customers to help feed and enhance the world by designing, delivering and servicing high value solutions at the heart of growing and sustaining our diverse communities with operations in over 30 countries and sales in over 150 countries around the world. The Company's product offering is concentrated in rotating, actuating and hydraulic technologies, as well as automated process systems, into food and beverage, industrial and power and energy 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 asset impairment charges, restructuring and other related 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, North Carolina corporate headquarters and our Asia Pacific center in Shanghai, China. Corporate expense also reflects stock-based compensation costs associated with corporate employees. Reportable Segment Financial Data Financial data for our reportable segments for the three months ended March 30, 2019 and March 31, 2018 were as follows: Three months ended March 30, 2019 March 31, 2018 Revenues: Food and Beverage $ 172.5 $ 166.5 Power and Energy 136.3 144.7 Industrial 182.3 179.1 Total revenues $ 491.1 $ 490.3 Income: Food and Beverage $ 18.5 $ 17.9 Power and Energy 9.8 12.2 Industrial 27.1 20.5 Total income for reportable segments 55.4 50.6 Corporate expense 13.3 14.4 Pension and postretirement service costs 0.3 0.4 Restructuring and other related charges 5.0 2.6 Consolidated operating income $ 36.8 $ 33.2 Revenues recognized over time: The following table provides revenues recognized over time by reportable segment for the three months ended March 30, 2019 and March 31, 2018 : Three months ended March 30, 2019 March 31, 2018 Revenues recognized over time: Food and Beverage $ 79.8 $ 62.6 Power and Energy 24.7 27.9 Industrial 16.0 18.7 Total revenues recognized over time $ 120.5 $ 109.2 Disaggregated Information about Revenues: Our aftermarket revenues generally include sales of parts and service/maintenance services, and original equipment (“OE”) revenues generally include all other revenue streams. The following table provides disaggregated information about our OE, including Food and Beverage systems, and aftermarket revenues by reportable segment for the three months ended March 30, 2019 and March 31, 2018 : Three months ended March 30, 2019 Three months ended March 31, 2018 Original Equipment Aftermarket Total Revenues Original Equipment Aftermarket Total Revenues Food and Beverage $ 112.6 (1) $ 59.9 $ 172.5 $ 103.3 (1) $ 63.2 $ 166.5 Power and Energy 70.3 66.0 136.3 73.9 70.8 144.7 Industrial 125.1 57.2 182.3 122.6 56.5 179.1 Total revenues $ 308.0 $ 183.1 $ 491.1 $ 299.8 $ 190.5 $ 490.3 (1) Includes $62.6 and $54.1 for the three months ended March 30, 2019 and March 31, 2018 , respectively, of revenue realized from the sale of highly engineered Food and Beverage systems. |
RESTRUCTURING AND OTHER RELATED
RESTRUCTURING AND OTHER RELATED CHARGES | 3 Months Ended |
Mar. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING AND OTHER RELATED CHARGES | RESTRUCTURING AND OTHER RELATED CHARGES Restructuring and other related charges for the three months ended March 30, 2019 and March 31, 2018 were as follows: Three months ended March 30, 2019 March 31, 2018 Food and Beverage $ 4.4 $ 0.1 Power and Energy — 2.1 Industrial 0.6 0.4 Total $ 5.0 $ 2.6 Restructuring and Other Related Charges By Reportable Segment Food and Beverage — Charges for the three months ended March 30, 2019 related primarily to severance and other costs associated with the further rationalization, initiated during the fourth quarter of 2018, of a business based primarily in the EMEA region. Power and Energy — Charges for the three months ended March 31, 2018 related primarily to severance and other costs associated with a reduction in workforce of the manufacturing operations of a facility in the U.K. Industrial — Charges for the three months ended March 30, 2019 related primarily to severance and other costs associated with certain operations personnel in the EMEA region. Charges for the three months ended March 31, 2018 related primarily to severance and other costs associated with (i) operations personnel in North America and the Asia Pacific region, partially offset by (ii) revisions of estimates related to certain previously announced restructuring activities. Expected charges still to be incurred under actions approved as of March 30, 2019 were approximately $1.0 . The following is an analysis of our restructuring liabilities (included in “Accrued expenses” in our condensed consolidated balance sheets) for the three months ended March 30, 2019 and March 31, 2018 : Three months ended March 30, 2019 March 31, 2018 Balance at beginning of year $ 7.7 $ 12.4 Restructuring and other related charges (1) 4.7 2.6 Utilization — cash (0.4 ) (3.8 ) Currency translation adjustment and other — 0.3 Balance at end of period $ 12.0 $ 11.5 (1) Amounts that impacted restructuring and other related charges but not the restructuring liabilities included $0.3 of other related charges during the three months ended March 30, 2019 . |
INVENTORIES, NET
INVENTORIES, NET | 3 Months Ended |
Mar. 30, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES, NET | INVENTORIES, NET Inventories at March 30, 2019 and December 31, 2018 comprised the following: March 30, 2019 December 31, 2018 Finished goods $ 102.0 $ 93.7 Work in process 103.5 98.8 Raw materials and purchased parts 116.5 119.7 Total FIFO cost 322.0 312.2 Excess of FIFO cost over LIFO inventory value (7.4 ) (7.4 ) Total inventories $ 314.6 $ 304.8 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 9% and 8% of total inventory at March 30, 2019 and December 31, 2018 , respectively. 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 |
Mar. 30, 2019 | |
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 during the three months ended March 30, 2019 were as follows: December 31, 2018 Impairments Foreign Currency Translation and Other March 30, 2019 Food and Beverage $ 261.5 $ — $ (1.4 ) $ 260.1 Power and Energy (1) 263.9 — 3.0 266.9 Industrial (2) 218.9 — (1.8 ) 217.1 Total $ 744.3 $ — $ (0.2 ) $ 744.1 (1) The carrying amount of goodwill included $251.2 and $248.5 of accumulated impairments as of March 30, 2019 and December 31, 2018 , respectively. (2) The carrying amount of goodwill included $67.7 of accumulated impairments as of March 30, 2019 and December 31, 2018 . As of March 30, 2019 , 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 2019 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. Other Intangibles, Net Identifiable intangible assets were as follows: March 30, 2019 December 31, 2018 Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value Intangible assets with determinable lives: Customer relationships $ 218.9 $ (131.5 ) $ 87.4 $ 218.1 $ (128.7 ) $ 89.4 Technology 84.1 (54.7 ) 29.4 84.5 (54.0 ) 30.5 Patents 6.7 (5.4 ) 1.3 6.7 (5.3 ) 1.4 Other 10.9 (10.9 ) — 10.8 (10.8 ) — 320.6 (202.5 ) 118.1 320.1 (198.8 ) 121.3 Trademarks with indefinite lives 193.0 — 193.0 191.0 — 191.0 Total $ 513.6 $ (202.5 ) $ 311.1 $ 511.1 $ (198.8 ) $ 312.3 As of March 30, 2019 , the net carrying value of intangible assets with determinable lives consisted of the following by reportable segment: $68.5 in Power and Energy, $32.5 in Food and Beverage, and $17.1 in Industrial. Trademarks with indefinite lives consisted of the following by reportable segment: $98.7 in Food and Beverage, $59.5 in Industrial, and $34.8 in Power and Energy. No impairment charges were recorded during the three months ended March 30, 2019 or March 31, 2018 . Changes in the gross carrying values of trademarks and other identifiable intangible assets during the three months ended March 30, 2019 related to foreign currency translation. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 3 Months Ended |
Mar. 30, 2019 | |
Retirement Benefits [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 Net periodic benefit expense for our foreign pension plans and our domestic pension and postretirement plans for the three months ended March 30, 2019 and March 31, 2018 included the following components: Foreign Pension Plans Domestic Pension and Postretirement Plans Total Statement of Operations Caption in Which Expense is Reported Three months ended March 30, 2019 March 31, 2018 March 30, 2019 March 31, 2018 March 30, 2019 March 31, 2018 Service cost $ 0.3 0.2 $ — $ 0.2 $ 0.3 $ 0.4 Selling, general and administrative Interest cost 0.1 0.2 0.1 0.1 0.2 0.3 Other income (expense), net Total net periodic benefit expense $ 0.4 $ 0.4 $ 0.1 $ 0.3 $ 0.5 $ 0.7 Employer Contributions During the three months ended March 30, 2019 and March 31, 2018 , contributions to the foreign and domestic pension plans we sponsor were less than $0.1 . |
INDEBTEDNESS
INDEBTEDNESS | 3 Months Ended |
Mar. 30, 2019 | |
Debt Disclosure [Abstract] | |
INDEBTEDNESS | INDEBTEDNESS Debt at March 30, 2019 and December 31, 2018 was comprised of the following: March 30, 2019 December 31, 2018 Term loan (1) $ 135.0 $ 140.0 5.625% senior notes, due in August 2024 300.0 300.0 5.875% senior notes, due in August 2026 300.0 300.0 Other indebtedness (2) 29.0 37.3 Less: deferred financing fees (3) (7.7 ) (8.0 ) Total debt 756.3 769.3 Less: short-term debt 24.0 26.0 Less: current maturities of long-term debt 20.6 21.2 Total long-term debt $ 711.7 $ 722.1 (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 finance lease obligations (previously “capital lease obligations” in 2018 under prior accounting guidance) of $4.5 and $10.8 and balances under a purchase card program of $22.1 and $23.0 as of March 30, 2019 and December 31, 2018 , 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. See Note 2 for further discussion regarding our adoption of a new lease accounting standard during the three months ended March 30, 2019 and the impact of such adoption on our capital lease obligations. (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 financial statements included in our 2018 Annual Report on Form 10-K. The weighted-average interest rate of outstanding borrowings under our senior credit facilities was approximately 4.2% and 4.3% at March 30, 2019 and December 31, 2018 , respectively. At March 30, 2019 , we had $444.0 of borrowing capacity under our revolving credit facilities after giving effect to $6.0 reserved for outstanding letters of credit. At March 30, 2019 , we had $27.3 of available borrowing capacity under our trade receivables financing arrangement. 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 March 30, 2019 , we had $396.1 of available issuance capacity under our foreign credit instrument facilities after giving effect to $103.9 reserved for outstanding bank guarantees and standby letters of credit. At March 30, 2019 , in addition to the revolving lines of credit described above, we had approximately $9.1 of letters of credit outstanding under separate arrangements in China and India. At March 30, 2019 , we were in compliance with all covenants of our senior credit facilities and senior notes. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 30, 2019 | |
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 $68.8 and $65.3 outstanding as of March 30, 2019 and December 31, 2018 , respectively, with all such contracts scheduled to mature within one year . We also had FX embedded derivatives with an aggregate notional amount of $16.6 and $15.3 at March 30, 2019 and December 31, 2018 , respectively, with scheduled maturities of $16.4 and $0.2 within one and two years , respectively. There were unrealized losses of $0.1 and $0.3 recorded in accumulated other comprehensive loss related to FX forward contracts as of March 30, 2019 and December 31, 2018 , respectively. The net losses recorded in “ Other income (expense), net ” related to FX losses totaled $1.2 and $4.3 for the three months ended March 30, 2019 and March 31, 2018 , 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 $1.8 and $2.1 (gross assets) and $0.5 and $0.2 (gross liabilities) at March 30, 2019 and December 31, 2018 , respectively. |
EQUITY AND STOCK-BASED COMPENSA
EQUITY AND STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 30, 2019 | |
Equity [Abstract] | |
EQUITY AND STOCK-BASED COMPENSATION | EQUITY AND STOCK-BASED COMPENSATION Income Per Share The following table sets forth the number of weighted-average shares outstanding used in the computation of basic and diluted income per share: Three months ended March 30, 2019 March 31, 2018 Weighted-average shares outstanding, basic 42.452 41.978 Dilutive effect of share-based awards 0.125 0.552 Weighted-average shares outstanding, dilutive (1) 42.577 42.530 (1) Unvested restricted stock shares/units not included in the computation of diluted income per share because required market thresholds for vesting (as discussed below) were not met, were 0.202 for the three months ended March 30, 2019 . Unvested restricted stock shares/units not included in the computation of diluted income per share because required internal performance thresholds for vesting (as discussed below) were not met, were 0.151 and 0.216 for the three months ended March 30, 2019 and March 31, 2018 , respectively. Stock options outstanding excluded from the computation of diluted income per share because their exercise price was greater than the average market price of common shares, were 0.342 for the three months ended March 30, 2019 and March 31, 2018 . Stock-Based Compensation 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 0.754 unissued shares of our common stock were available for future grant as of March 30, 2019 . 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 2019 target performance awards during the three months ended March 30, 2019 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 2019 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, 2019 through December 31, 2021. In addition, certain eligible employees, including officers, were granted 2019 target performance awards during the three months ended March 30, 2019 that vest subject to attainment of stated improvements in a three -year average annual return on invested capital (as defined under the awards) measured at the conclusion of the measurement period ending December 31, 2021 (including eligible employees’ continued employment during the measurement period). These target performance awards were issued as restricted stock units to eligible employees, including officers. Eligible employees, including officers, also were granted 2019 awards during the three months ended March 30, 2019 that vest ratably over three years , subject to the passage of time and the employees’ continued employment during such period. An officer also was granted a 2019 award during the three months ended March 30, 2019 that vests at the end of three years, subject to the passage of time and the officer’s 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. These awards were issued as restricted stock units to eligible employees, including officers. Restricted stock unit awards granted to eligible employees, including officers, during the three months ended March 30, 2019, 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 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 March 30, 2019 and March 31, 2018 , 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 March 30, 2019 March 31, 2018 Stock-based compensation expense $ 3.2 $ 5.1 Income tax benefit (0.7 ) (1.2 ) Stock-based compensation expense, net of income tax benefit $ 2.5 $ 3.9 Restricted Stock Unit Awards The Monte Carlo simulation model valuation technique was used to determine the fair value of our 2019 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 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 March 21, 2019: SPX FLOW 36.9 % — % 2.45 % 0.1274 0.4364 0.7393 Composite Group 28.1 % n/a 2.45 % Annual expected stock price volatility was based on the weighted average of SPX FLOW’s historical volatility 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 March 30, 2019 : Unvested Restricted Stock Shares and Restricted Stock Units Weighted-Average Grant-Date Fair Value Per Share Outstanding at December 31, 2018 1.176 $36.40 Granted 0.469 33.97 Vested (0.421) 32.17 Forfeited and other (0.226) 30.20 Outstanding at March 30, 2019 0.998 $38.43 As of March 30, 2019 , there was $27.1 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 2.3 years. Stock Options There were 0.342 of SPX FLOW stock options outstanding as of March 30, 2019 and December 31, 2018 , all of which were exercisable as of March 30, 2019 . 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 (subject to earlier expiration upon a recipient's termination of service as provided under the awards). There was no unrecognized compensation cost related to these stock options as of March 30, 2019 . Accumulated Other Comprehensive Loss Substantially all of accumulated other comprehensive loss (“AOCL”) as of March 30, 2019 and December 31, 2018 was foreign currency translation adjustment (there were unrealized losses of $0.1 and $0.3 , net of taxes, recorded in AOCL related to FX forward contracts as of March 30, 2019 and December 31, 2018 , respectively, as discussed in Note 9). See the condensed consolidated statement of comprehensive income for changes in AOCL for the three months ended March 30, 2019 and March 31, 2018 . Common Stock in Treasury During the three months ended March 30, 2019 and March 31, 2018 , “Common stock in treasury” was increased by $5.1 and $4.0 , respectively, for common stock that was surrendered by recipients of restricted stock as a means of funding the related applicable income tax withholding requirements. |
LITIGATION, CONTINGENT LIABILIT
LITIGATION, CONTINGENT LIABILITIES AND OTHER MATTERS | 3 Months Ended |
Mar. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
LITIGATION, CONTINGENT LIABILITIES AND OTHER MATTERS | LITIGATION, CONTINGENT LIABILITIES AND OTHER MATTERS Various claims, complaints and proceedings arising in the ordinary course of business, including those relating to litigation matters (e.g., class actions, derivative lawsuits and contracts, intellectual property and competitive claims, and claims to certain indemnification obligations arising from previous acquisitions/dispositions), have been filed or are pending against us and certain of our subsidiaries. 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. During the first quarter of 2019, the Company received a payment demand from a customer arising from a project that is substantially complete in terms of production, revenue recognition and receipt of payment. Management does not have sufficient information at this time to estimate a potential loss or range of loss associated with this matter, but if the matter were to be concluded adversely to the Company, it could have a material impact on earnings and cash flows in the period so determined. 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 March 30, 2019 and December 31, 2018 are stated at 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 as described in Note 13. Of the $21.2 of current exercise value of the put options outstanding as of March 30, 2019 , options with a value of $11.9 became exercisable during 2018. If and when such options are exercised, we expect to settle the option value in cash. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Unrecognized Tax Benefits As of March 30, 2019 , we had gross unrecognized tax benefits of $5.3 (net unrecognized tax benefits of $2.9 ), of which $2.9 , 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 March 30, 2019 , gross accrued interest totaled $0.4 (net accrued interest of $0.3 ), 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 $1.5 to $2.5 . The previously unrecognized tax benefits relate to transfer pricing 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 SPX Corporation (the “ former Parent ” ) or its subsidiaries that were not part of our spin-off from the former Parent effected on September 26, 2015 (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 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 March 30, 2019 , we recorded an income tax provision of $10.7 on $30.8 of pre-tax income, resulting in an effective tax rate of 34.7% . This compares to an income tax provision for the three months ended March 31, 2018 of $0.8 on $16.1 of pre-tax income, resulting in an effective tax rate of 5.0% . The effective tax rate for the first quarter of 2019 was impacted by a charge of $2.1 resulting from losses occurring in certain jurisdictions where the tax benefit of those losses is not expected to be realized. The effective tax rate for the first quarter of 2018 was impacted by a benefit of $9.4 resulting from additional foreign tax credits available to the Company arising from distributions of income taxed under the transition tax provisions of the Tax Act and partially offset by charges of (i) $1.8 resulting from a refinement of the transition tax calculation, (ii) $1.1 resulting from an increase to the liability for earnings not considered indefinitely reinvested caused by the changes to the transition tax calculation, and (iii) $1.3 resulting from losses occurring in certain jurisdictions where the tax benefit of those losses is not expected to be realized. During the fourth quarter of 2018, the U.S. Treasury issued additional guidance regarding a provision of the Tax Act which effectively eliminated the $9.4 benefit related to the foreign tax credits arising from distributions of income taxed under the transition tax provisions of the Tax Act and recorded in the first quarter of 2018 as described above. Refer to the notes to our consolidated financial statements in our 2018 Annual Report on Form 10-K for additional information regarding the Tax Act and its impact on our income tax provision. We review our income tax positions on a continuous basis and record unrecognized tax benefits 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. Of these returns, the 2014 and pre-Spin-Off portion of the 2015 federal income tax returns are currently under audit, 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 a limited number of state income tax returns in the process of examination. We believe any uncertain tax positions related to these examinations have been appropriately reflected as unrecognized tax benefits. 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 2019. We believe that any uncertain tax positions related to these examinations have been appropriately reflected as unrecognized tax benefits. 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 |
Mar. 30, 2019 | |
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 periods presented. 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 March 30, 2019 and December 31, 2018 , the gross fair values of our derivative financial assets and liabilities, in aggregate, were $1.8 and $2.1 (gross assets) and $0.5 and $0.2 (gross liabilities), respectively. As of March 30, 2019 , 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 In connection with an adoption of new accounting guidance, we adjusted an investment in an equity security from its historical cost to estimated fair value during the fourth quarter of 2018. Utilizing a practical expedient, the fair value of our equity security was based on our ownership percentage, applied to the net asset value derived from the investee's most currently issued, audited financial statements at that time. Our investment in the equity security is reflected at its net asset value in “other assets” in our condensed consolidated balance sheets as of March 30, 2019 and December 31, 2018 and the increase in our investment, based on the equity security’s most recently determined net asset value, is reflected in “ Other income (expense), net ” in our condensed consolidated statement of operations during the three months ended March 30, 2019 . We are restricted from transferring this investment without approval of the manager of the investee. The table below represents a reconciliation of our investment in the equity security, measured at net asset value using a practical expedient to fair value guidance, for the three months ended March 30, 2019, including the increase in net asset value recorded to “Other income (expense), net.” As noted above, this investment was recognized at its historical cost until the fourth quarter of 2018. Three months ended March 30, 2019 Balance at beginning of year $ 16.6 Increase in net asset value recorded to earnings 6.2 Proceeds received from partial distribution of investee (2.6 ) Balance at end of period $ 20.2 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 March 30, 2019 , 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 finance leases and deferred financing fees) not measured at fair value on a recurring basis as of March 30, 2019 and December 31, 2018 were as follows: March 30, 2019 December 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Term loan (1) $ 135.0 $ 135.0 $ 140.0 $ 140.0 5.625% Senior notes (1) 300.0 300.8 300.0 283.5 5.875% Senior notes (1) 300.0 300.8 300.0 279.4 Other indebtedness 24.5 24.5 26.5 26.5 (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 term loan approximated carrying value due primarily to the variable-rate nature and credit spread of this instruments, when compared to other similar instruments. • The fair values of other indebtedness approximated carrying value due primarily to the short-term nature of these instruments. The carrying amounts of cash and equivalents, receivables and contract assets reported in our condensed consolidated balance sheets as of March 30, 2019 and December 31, 2018 approximate fair value due to the short-term nature of those instruments. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 3 Months Ended |
Mar. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | SUBSEQUENT EVENT On May 2, 2019, the Company announced that its Board of Directors has initiated a process to divest a substantial portion of the Company’s Power and Energy reportable segment. The Company’s Board has not set a timetable for the conclusion of this process nor has it made any decision related to any transaction at this time. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 30, 2019 | |
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 financial statements contained in our 2018 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. Amounts previously captioned “Special Charges” in our condensed consolidated financial statements included in our first quarter 2018 Quarterly Report on Form 10-Q are now reported under the caption “Restructuring and other related charges” to conform to the current year presentation. 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 2019 are March 30, June 29, and September 28, compared to the respective March 31, June 30, and September 29, 2018 dates. We had one less day in the first quarter of 2019 and will have one more day in the fourth quarter of 2019 than in the respective 2018 periods. |
Revenue Recognition | Revenue Recognition Contract Balances: Contract assets include unbilled amounts typically resulting from sales under contracts recognized over time when the cost-to-cost method of revenue recognition is utilized and revenue recognized exceeds the amount billed to the customer, and right to payment is not just subject to the passage of time. Contract assets are generally classified as current, as we expect to bill the amounts within the next twelve months. Contract liabilities include billings in excess of revenue recognized under contracts recognized over time and advance payments received from customers related to product sales (unearned revenue). We classify contract liabilities generally as a current liability, as we expect to recognize the related revenue within the next twelve months. Our contract assets and liabilities are reported on a contract-by-contract basis at the end of each reporting period. Our contract accounts receivable, assets and liabilities, and changes in such balances, were as follows: March 30, 2019 December 31, 2018 Change (1) % Change Contract accounts receivable (2) $ 367.8 $ 369.8 $ (2.0 ) (0.5 )% Contract assets 69.2 69.3 (0.1 ) (0.1 )% Contract liabilities (169.5 ) (174.9 ) 5.4 (3.1 )% Net contract balance $ 267.5 $ 264.2 $ 3.3 (1) The $3.3 increase in our net contract balance from December 31, 2018 to March 30, 2019 was primarily due to the timing of advance and milestone payments received on certain Food and Beverage and Power and Energy contracts recognized over time, and of performance obligations satisfied and the related revenue recognized on such contracts. (2) Included in “Accounts receivable, net” in our condensed consolidated balance sheets. Amounts are presented before consideration of the allowance for uncollectible accounts. During the three months ended March 30, 2019 , we recognized revenues of $68.9 related to contract liabilities outstanding as of December 31, 2018 . Remaining Performance Obligations: Remaining performance obligations represent the transaction price of orders for which (i) control of goods or services has not been transferred to the customer or we have not otherwise met our performance obligations, or (ii) where revenue is accounted for over time, proportional costs have not yet been incurred. Such remaining performance obligations exclude unexercised contract options and potential orders under “blanket order” contracts (e.g., with indefinite delivery dates or quantities). As of March 30, 2019 , the aggregate amount of our remaining performance obligations was $917.4 . The Company expects to recognize revenue on approximately 88% and substantially all of our remaining performance obligations within the next 12 and 24 months, respectively. |
New Accounting Pronouncements | The following is a summary of new accounting pronouncements that apply or may apply to our business. New Leases Pronouncement Effects of Adoption - In February 2016, and as subsequently amended, the Financial Accounting Standards Board (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. 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. We adopted the standard effective January 1, 2019 using the modified retrospective adoption method which allowed us to initially apply the new standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of accumulated deficit. In connection with our adoption of the new lease pronouncement, we recorded a charge to accumulated deficit of $8.5 , reflecting the effects of (1) an impairment of a right-of-use (“ROU”) asset resulting from the rationalization of a business in our Food and Beverage segment during the fourth quarter of 2018 and, to a lesser extent, (2) the reclassification of a former capital lease to an operating lease. See Note 4 for additional information regarding the rationalization of the Food and Beverage business. We have elected to use the practical expedient package that allows us to not reassess: (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases. We additionally elected to use the practical expedients that allow lessees to: (1) treat the lease and non-lease components of leases as a single lease component for all of our leases and (2) not recognize on our balance sheet leases with terms less than twelve months. We determine if an arrangement is a lease at inception. We lease certain manufacturing facilities, warehouses, administrative offices, sales and service locations, machinery and equipment, vehicles and office equipment under operating leases. Under the new standard, operating leases result in the recognition of ROU assets and lease liabilities on the consolidated balance sheet. ROU assets represent our right to use the leased asset for the lease term and lease liabilities represent our obligation to make lease payments. Under the new standard, operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, upon adoption of the new standard, we used our country-specific estimated incremental borrowing rate based on the information available, including lease term, as of January 1, 2019 to determine the present value of lease payments. Operating lease ROU assets are adjusted for any lease payments made prior to January 1, 2019 and any lease incentives. Certain of our leases may include options to extend or terminate the original lease term. We generally conclude that we are not reasonably certain to exercise these options due primarily to the length of the original lease term and our assessment that economic incentives are not reasonably certain to be realized. Operating lease expense under the new standard is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components and, as noted above, we account for the lease and non-lease components as a single lease component under the new standard. Our current finance lease obligations consist primarily of manufacturing facility leases. Upon adoption of the new standard, we reclassified a single lease from capital to operating based on specific transition requirements for build-to-suit arrangements recognized as capital leases under the prior accounting standard. Upon derecognizing the former capital lease asset and liability, we determined the lease to be operating under the new standard. Refer to the “Summary of Effects of Lease Accounting Standard Update Adopted in First Quarter of 2019” below for further details. Leases accounted for under the new standard have initial remaining lease terms of one to 15 years. Certain of our lease agreements include rental payments adjusted periodically for inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The components of operating and finance lease ROU assets and liabilities as of March 30, 2019 were as follows: March 30, 2019 Balance Sheet Caption in Which Balance is Reported Finance lease ROU assets $ 3.7 Property, plant and equipment, net Operating lease ROU assets 65.4 Other assets Current portion of operating lease liabilities 20.8 Accrued expenses Current portion of finance lease liabilities 0.6 Current maturities of long-term debt Long-term finance lease liabilities 3.9 Long-term debt Long-term operating lease liabilities 53.1 Other long-term liabilities The components of lease expense for the three months ended March 30, 2019 were as follows: Three months ended March 30, 2019 Operating lease cost (1) $ 6.1 Finance lease cost: Amortization of leased assets (1) 0.1 Interest on lease liabilities (2) 0.1 Short-term lease cost (1) 0.9 Variable lease cost (1) 0.5 Total lease cost $ 7.7 (1) Included in “ Cost of products sold ” and “ Selling, general and administrative ” in our condensed consolidated statement of operations. (2) Included in “ Interest expense, net ” in our condensed consolidated statement of operations. The future lease payments under operating and finance leases with initial remaining terms in excess of one year as of March 30, 2019 were as follows: Year Ending December 31, Operating leases Finance leases Total 2019 $ 17.6 $ 0.6 $ 18.2 2020 18.4 0.8 19.2 2021 12.9 0.8 13.7 2022 8.9 0.8 9.7 2023 6.5 0.7 7.2 Thereafter 20.6 1.7 22.3 Total lease payments 84.9 5.4 90.3 Less: interest (11.0 ) (0.9 ) (11.9 ) Present value of lease liabilities $ 73.9 $ 4.5 $ 78.4 The future lease payments under operating and capital leases as of December 31, 2018 were as follows: Year Ending December 31, Operating leases Capital leases 2019 $ 23.4 $ 1.6 2020 17.5 1.6 2021 12.1 1.6 2022 7.6 1.6 2023 5.5 1.6 Thereafter 18.0 4.4 Total lease payments $ 84.1 12.4 Less: interest (1.6 ) Present value of lease liabilities $ 10.8 Key assumptions used in accounting for our operating and finance leases as of March 30, 2019 were as follows: March 30, 2019 Weighted-average remaining lease term (years): Operating leases 6.0 Finance leases 6.8 Weighted-average discount rate: Operating leases 4.71 % Finance leases 5.85 % Cash flows and non-cash activities related to our operating and finance leases for the three months ended March 30, 2019 were as follows: Three months ended March 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid for operating leases $ 6.0 Operating cash flows paid for finance leases 0.1 Financing cash flows paid for finance leases 0.3 Non-cash activities: Operating lease ROU assets obtained in exchange for new operating lease liabilities 1.5 Finance lease ROU assets obtained in exchange for new finance lease liabilities 0.6 Summary of Effects of Lease Accounting Standard Update Adopted in First Quarter of 2019 The cumulative effects of the changes made to our condensed consolidated balance sheet as of the beginning of the first quarter of 2019 as a result of the adoption of the accounting standard update on leases were as follows: Effects of adoption of lease accounting standard update related to: Balance Sheet As filed December 31, 2018 Recognition of Operating Leases Reclassification of Capital Lease to Operating Lease Impairment of Operating Lease ROU Asset Total effects of adoption With effect of lease accounting standard update January 1, 2019 Assets Other current assets $ 44.3 $ (1.2 ) $ — $ — $ (1.2 ) $ 43.1 Buildings and leasehold improvements 232.1 — (7.2 ) — (7.2 ) 224.9 Accumulated depreciation (394.1 ) — 0.7 — 0.7 (393.4 ) Other assets 152.3 71.8 5.8 (8.4 ) 69.2 221.5 Liabilities Accrued expenses 195.3 20.2 0.9 — 21.1 216.4 Current maturities of long-term debt 21.2 — (0.7 ) — (0.7 ) 20.5 Long-term debt 722.1 — (6.1 ) — (6.1 ) 716.0 Other long-term liabilities 112.2 50.4 5.3 — 55.7 167.9 Equity Accumulated deficit (265.6 ) — (0.1 ) (8.4 ) (8.5 ) (274.1 ) Other New Accounting Pronouncements In June 2016, and as subsequently amended, the FASB issued an amendment on the measurement of credit losses. This amendment requires companies to estimate all expected credit losses for certain types of financial instruments, including trade receivables, held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. This amendment is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. The Company is evaluating the impact this amendment may have on its condensed consolidated financial statements. In March 2018, the FASB issued an amendment to update the Codification and XBRL Taxonomy as a result of the Tax Cuts and Jobs Act (the “Tax Act”), and to incorporate the Staff Accounting Bulletin 118 (“SAB 118”) as released by the SEC, which provides guidance for companies that are not able to complete their accounting for the income tax effects of the Tax Act in the period of enactment. This amendment is effective for interim and annual reporting periods beginning after December 15, 2018. The Company completed its accounting for the impact of this tax reform legislation as of December 31, 2018. Our adoption of this amendment had no impact on our condensed consolidated financial statements in the first quarter of 2019 . In August 2018, the FASB issued an amendment to modify the disclosure requirements related to fair value measurements. This amendment removes, modifies and adds certain disclosures required under current guidance. For example, the amendment removes the requirements to disclose the amount of and reason for transfers between Level 1 and Level 2 of the fair value hierarchy as well as the policy for timing of transfers between levels, and requires certain additional disclosures related to Level 3 fair value measurements. This amendment is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. The Company is evaluating the impact this amendment may have on its condensed consolidated financial statements. In August 2018, the FASB issued an amendment to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). Amongst other changes in requirements, the amendments in this update also require an entity to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement. This amendment is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. The Company is evaluating the impact this amendment may have on its condensed consolidated financial statements. In August 2018, the FASB issued an amendment to modify the disclosure requirements related to defined benefit plans. This amendment removes, clarifies and adds certain disclosures required under current guidance. For example, the amendment removes the requirement to disclose the effects of a one-percentage point change in assumed health care cost trend rates on postretirement benefit obligations and service and interest cost components of periodic benefit costs, and requires an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. This amendment is effective for interim and annual reporting periods beginning after December 15, 2020, with early adoption permitted. The Company is evaluating the impact this amendment may have on its condensed consolidated financial statements. |
BASIS OF PRESENTATION (Tables)
BASIS OF PRESENTATION (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Contract assets and liabilities and changes in balances | Our contract accounts receivable, assets and liabilities, and changes in such balances, were as follows: March 30, 2019 December 31, 2018 Change (1) % Change Contract accounts receivable (2) $ 367.8 $ 369.8 $ (2.0 ) (0.5 )% Contract assets 69.2 69.3 (0.1 ) (0.1 )% Contract liabilities (169.5 ) (174.9 ) 5.4 (3.1 )% Net contract balance $ 267.5 $ 264.2 $ 3.3 (1) The $3.3 increase in our net contract balance from December 31, 2018 to March 30, 2019 was primarily due to the timing of advance and milestone payments received on certain Food and Beverage and Power and Energy contracts recognized over time, and of performance obligations satisfied and the related revenue recognized on such contracts. (2) Included in “Accounts receivable, net” in our condensed consolidated balance sheets. Amounts are presented before consideration of the allowance for uncollectible accounts. |
NEW ACCOUNTING PRONOUNCEMENTS (
NEW ACCOUNTING PRONOUNCEMENTS (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Components of lease assets and liabilities | The components of operating and finance lease ROU assets and liabilities as of March 30, 2019 were as follows: March 30, 2019 Balance Sheet Caption in Which Balance is Reported Finance lease ROU assets $ 3.7 Property, plant and equipment, net Operating lease ROU assets 65.4 Other assets Current portion of operating lease liabilities 20.8 Accrued expenses Current portion of finance lease liabilities 0.6 Current maturities of long-term debt Long-term finance lease liabilities 3.9 Long-term debt Long-term operating lease liabilities 53.1 Other long-term liabilities |
Components of lease expense and cash flows | Key assumptions used in accounting for our operating and finance leases as of March 30, 2019 were as follows: March 30, 2019 Weighted-average remaining lease term (years): Operating leases 6.0 Finance leases 6.8 Weighted-average discount rate: Operating leases 4.71 % Finance leases 5.85 % Cash flows and non-cash activities related to our operating and finance leases for the three months ended March 30, 2019 were as follows: Three months ended March 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid for operating leases $ 6.0 Operating cash flows paid for finance leases 0.1 Financing cash flows paid for finance leases 0.3 Non-cash activities: Operating lease ROU assets obtained in exchange for new operating lease liabilities 1.5 Finance lease ROU assets obtained in exchange for new finance lease liabilities 0.6 The components of lease expense for the three months ended March 30, 2019 were as follows: Three months ended March 30, 2019 Operating lease cost (1) $ 6.1 Finance lease cost: Amortization of leased assets (1) 0.1 Interest on lease liabilities (2) 0.1 Short-term lease cost (1) 0.9 Variable lease cost (1) 0.5 Total lease cost $ 7.7 (1) Included in “ Cost of products sold ” and “ Selling, general and administrative ” in our condensed consolidated statement of operations. (2) Included in “ Interest expense, net ” in our condensed consolidated statement of operations. |
Operating lease, maturity of lease liability | The future lease payments under operating and finance leases with initial remaining terms in excess of one year as of March 30, 2019 were as follows: Year Ending December 31, Operating leases Finance leases Total 2019 $ 17.6 $ 0.6 $ 18.2 2020 18.4 0.8 19.2 2021 12.9 0.8 13.7 2022 8.9 0.8 9.7 2023 6.5 0.7 7.2 Thereafter 20.6 1.7 22.3 Total lease payments 84.9 5.4 90.3 Less: interest (11.0 ) (0.9 ) (11.9 ) Present value of lease liabilities $ 73.9 $ 4.5 $ 78.4 |
Finance lease, maturity of lease liability | The future lease payments under operating and finance leases with initial remaining terms in excess of one year as of March 30, 2019 were as follows: Year Ending December 31, Operating leases Finance leases Total 2019 $ 17.6 $ 0.6 $ 18.2 2020 18.4 0.8 19.2 2021 12.9 0.8 13.7 2022 8.9 0.8 9.7 2023 6.5 0.7 7.2 Thereafter 20.6 1.7 22.3 Total lease payments 84.9 5.4 90.3 Less: interest (11.0 ) (0.9 ) (11.9 ) Present value of lease liabilities $ 73.9 $ 4.5 $ 78.4 |
Schedule of future lease payments under operating leases | The future lease payments under operating and capital leases as of December 31, 2018 were as follows: Year Ending December 31, Operating leases Capital leases 2019 $ 23.4 $ 1.6 2020 17.5 1.6 2021 12.1 1.6 2022 7.6 1.6 2023 5.5 1.6 Thereafter 18.0 4.4 Total lease payments $ 84.1 12.4 Less: interest (1.6 ) Present value of lease liabilities $ 10.8 |
Schedule of future lease payments under capital leases | The future lease payments under operating and capital leases as of December 31, 2018 were as follows: Year Ending December 31, Operating leases Capital leases 2019 $ 23.4 $ 1.6 2020 17.5 1.6 2021 12.1 1.6 2022 7.6 1.6 2023 5.5 1.6 Thereafter 18.0 4.4 Total lease payments $ 84.1 12.4 Less: interest (1.6 ) Present value of lease liabilities $ 10.8 |
Impact of adoption on financial statements | The cumulative effects of the changes made to our condensed consolidated balance sheet as of the beginning of the first quarter of 2019 as a result of the adoption of the accounting standard update on leases were as follows: Effects of adoption of lease accounting standard update related to: Balance Sheet As filed December 31, 2018 Recognition of Operating Leases Reclassification of Capital Lease to Operating Lease Impairment of Operating Lease ROU Asset Total effects of adoption With effect of lease accounting standard update January 1, 2019 Assets Other current assets $ 44.3 $ (1.2 ) $ — $ — $ (1.2 ) $ 43.1 Buildings and leasehold improvements 232.1 — (7.2 ) — (7.2 ) 224.9 Accumulated depreciation (394.1 ) — 0.7 — 0.7 (393.4 ) Other assets 152.3 71.8 5.8 (8.4 ) 69.2 221.5 Liabilities Accrued expenses 195.3 20.2 0.9 — 21.1 216.4 Current maturities of long-term debt 21.2 — (0.7 ) — (0.7 ) 20.5 Long-term debt 722.1 — (6.1 ) — (6.1 ) 716.0 Other long-term liabilities 112.2 50.4 5.3 — 55.7 167.9 Equity Accumulated deficit (265.6 ) — (0.1 ) (8.4 ) (8.5 ) (274.1 ) |
INFORMATION ON REPORTABLE SEG_2
INFORMATION ON REPORTABLE SEGMENTS, CORPORATE EXPENSE AND OTHER (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of financial data for reportable segments | Financial data for our reportable segments for the three months ended March 30, 2019 and March 31, 2018 were as follows: Three months ended March 30, 2019 March 31, 2018 Revenues: Food and Beverage $ 172.5 $ 166.5 Power and Energy 136.3 144.7 Industrial 182.3 179.1 Total revenues $ 491.1 $ 490.3 Income: Food and Beverage $ 18.5 $ 17.9 Power and Energy 9.8 12.2 Industrial 27.1 20.5 Total income for reportable segments 55.4 50.6 Corporate expense 13.3 14.4 Pension and postretirement service costs 0.3 0.4 Restructuring and other related charges 5.0 2.6 Consolidated operating income $ 36.8 $ 33.2 Revenues recognized over time: The following table provides revenues recognized over time by reportable segment for the three months ended March 30, 2019 and March 31, 2018 : Three months ended March 30, 2019 March 31, 2018 Revenues recognized over time: Food and Beverage $ 79.8 $ 62.6 Power and Energy 24.7 27.9 Industrial 16.0 18.7 Total revenues recognized over time $ 120.5 $ 109.2 |
Disaggregation of revenue by reportable segments | The following table provides disaggregated information about our OE, including Food and Beverage systems, and aftermarket revenues by reportable segment for the three months ended March 30, 2019 and March 31, 2018 : Three months ended March 30, 2019 Three months ended March 31, 2018 Original Equipment Aftermarket Total Revenues Original Equipment Aftermarket Total Revenues Food and Beverage $ 112.6 (1) $ 59.9 $ 172.5 $ 103.3 (1) $ 63.2 $ 166.5 Power and Energy 70.3 66.0 136.3 73.9 70.8 144.7 Industrial 125.1 57.2 182.3 122.6 56.5 179.1 Total revenues $ 308.0 $ 183.1 $ 491.1 $ 299.8 $ 190.5 $ 490.3 (1) Includes $62.6 and $54.1 for the three months ended March 30, 2019 and March 31, 2018 , respectively, of revenue realized from the sale of highly engineered Food and Beverage systems. |
RESTRUCTURING AND OTHER RELAT_2
RESTRUCTURING AND OTHER RELATED CHARGES (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of special charges, net | Restructuring and other related charges for the three months ended March 30, 2019 and March 31, 2018 were as follows: Three months ended March 30, 2019 March 31, 2018 Food and Beverage $ 4.4 $ 0.1 Power and Energy — 2.1 Industrial 0.6 0.4 Total $ 5.0 $ 2.6 |
Schedule of the analysis of restructuring liabilities | The following is an analysis of our restructuring liabilities (included in “Accrued expenses” in our condensed consolidated balance sheets) for the three months ended March 30, 2019 and March 31, 2018 : Three months ended March 30, 2019 March 31, 2018 Balance at beginning of year $ 7.7 $ 12.4 Restructuring and other related charges (1) 4.7 2.6 Utilization — cash (0.4 ) (3.8 ) Currency translation adjustment and other — 0.3 Balance at end of period $ 12.0 $ 11.5 (1) Amounts that impacted restructuring and other related charges but not the restructuring liabilities included $0.3 of other related charges during the three months ended March 30, 2019 . |
INVENTORIES, NET (Tables)
INVENTORIES, NET (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories at March 30, 2019 and December 31, 2018 comprised the following: March 30, 2019 December 31, 2018 Finished goods $ 102.0 $ 93.7 Work in process 103.5 98.8 Raw materials and purchased parts 116.5 119.7 Total FIFO cost 322.0 312.2 Excess of FIFO cost over LIFO inventory value (7.4 ) (7.4 ) Total inventories $ 314.6 $ 304.8 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
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 during the three months ended March 30, 2019 were as follows: December 31, 2018 Impairments Foreign Currency Translation and Other March 30, 2019 Food and Beverage $ 261.5 $ — $ (1.4 ) $ 260.1 Power and Energy (1) 263.9 — 3.0 266.9 Industrial (2) 218.9 — (1.8 ) 217.1 Total $ 744.3 $ — $ (0.2 ) $ 744.1 (1) The carrying amount of goodwill included $251.2 and $248.5 of accumulated impairments as of March 30, 2019 and December 31, 2018 , respectively. (2) The carrying amount of goodwill included $67.7 of accumulated impairments as of March 30, 2019 and December 31, 2018 . |
Schedule of finite-lived intangible assets | Identifiable intangible assets were as follows: March 30, 2019 December 31, 2018 Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value Intangible assets with determinable lives: Customer relationships $ 218.9 $ (131.5 ) $ 87.4 $ 218.1 $ (128.7 ) $ 89.4 Technology 84.1 (54.7 ) 29.4 84.5 (54.0 ) 30.5 Patents 6.7 (5.4 ) 1.3 6.7 (5.3 ) 1.4 Other 10.9 (10.9 ) — 10.8 (10.8 ) — 320.6 (202.5 ) 118.1 320.1 (198.8 ) 121.3 Trademarks with indefinite lives 193.0 — 193.0 191.0 — 191.0 Total $ 513.6 $ (202.5 ) $ 311.1 $ 511.1 $ (198.8 ) $ 312.3 |
Schedule of indefinite-lived intangible assets | Identifiable intangible assets were as follows: March 30, 2019 December 31, 2018 Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value Intangible assets with determinable lives: Customer relationships $ 218.9 $ (131.5 ) $ 87.4 $ 218.1 $ (128.7 ) $ 89.4 Technology 84.1 (54.7 ) 29.4 84.5 (54.0 ) 30.5 Patents 6.7 (5.4 ) 1.3 6.7 (5.3 ) 1.4 Other 10.9 (10.9 ) — 10.8 (10.8 ) — 320.6 (202.5 ) 118.1 320.1 (198.8 ) 121.3 Trademarks with indefinite lives 193.0 — 193.0 191.0 — 191.0 Total $ 513.6 $ (202.5 ) $ 311.1 $ 511.1 $ (198.8 ) $ 312.3 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of net periodic benefit expense (income) | Net periodic benefit expense for our foreign pension plans and our domestic pension and postretirement plans for the three months ended March 30, 2019 and March 31, 2018 included the following components: Foreign Pension Plans Domestic Pension and Postretirement Plans Total Statement of Operations Caption in Which Expense is Reported Three months ended March 30, 2019 March 31, 2018 March 30, 2019 March 31, 2018 March 30, 2019 March 31, 2018 Service cost $ 0.3 0.2 $ — $ 0.2 $ 0.3 $ 0.4 Selling, general and administrative Interest cost 0.1 0.2 0.1 0.1 0.2 0.3 Other income (expense), net Total net periodic benefit expense $ 0.4 $ 0.4 $ 0.1 $ 0.3 $ 0.5 $ 0.7 |
INDEBTEDNESS (Tables)
INDEBTEDNESS (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of debt | Debt at March 30, 2019 and December 31, 2018 was comprised of the following: March 30, 2019 December 31, 2018 Term loan (1) $ 135.0 $ 140.0 5.625% senior notes, due in August 2024 300.0 300.0 5.875% senior notes, due in August 2026 300.0 300.0 Other indebtedness (2) 29.0 37.3 Less: deferred financing fees (3) (7.7 ) (8.0 ) Total debt 756.3 769.3 Less: short-term debt 24.0 26.0 Less: current maturities of long-term debt 20.6 21.2 Total long-term debt $ 711.7 $ 722.1 (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 finance lease obligations (previously “capital lease obligations” in 2018 under prior accounting guidance) of $4.5 and $10.8 and balances under a purchase card program of $22.1 and $23.0 as of March 30, 2019 and December 31, 2018 , 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. See Note 2 for further discussion regarding our adoption of a new lease accounting standard during the three months ended March 30, 2019 and the impact of such adoption on our capital lease obligations. (3) Deferred financing fees were comprised of fees related to the term loan and senior notes. |
EQUITY AND STOCK-BASED COMPEN_2
EQUITY AND STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
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 income per share: Three months ended March 30, 2019 March 31, 2018 Weighted-average shares outstanding, basic 42.452 41.978 Dilutive effect of share-based awards 0.125 0.552 Weighted-average shares outstanding, dilutive (1) 42.577 42.530 (1) Unvested restricted stock shares/units not included in the computation of diluted income per share because required market thresholds for vesting (as discussed below) were not met, were 0.202 for the three months ended March 30, 2019 . Unvested restricted stock shares/units not included in the computation of diluted income per share because required internal performance thresholds for vesting (as discussed below) were not met, were 0.151 and 0.216 for the three months ended March 30, 2019 and March 31, 2018 , respectively. Stock options outstanding excluded from the computation of diluted income per share because their exercise price was greater than the average market price of common shares, were 0.342 for the three months ended March 30, 2019 and March 31, 2018 . |
Schedule of compensation expense related to share-based programs recognized in selling, general and administrative expense | For the three months ended March 30, 2019 and March 31, 2018 , 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 March 30, 2019 March 31, 2018 Stock-based compensation expense $ 3.2 $ 5.1 Income tax benefit (0.7 ) (1.2 ) Stock-based compensation expense, net of income tax benefit $ 2.5 $ 3.9 |
Assumptions used in determining fair value of awards granted | 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 March 21, 2019: SPX FLOW 36.9 % — % 2.45 % 0.1274 0.4364 0.7393 Composite Group 28.1 % n/a 2.45 % |
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 March 30, 2019 : Unvested Restricted Stock Shares and Restricted Stock Units Weighted-Average Grant-Date Fair Value Per Share Outstanding at December 31, 2018 1.176 $36.40 Granted 0.469 33.97 Vested (0.421) 32.17 Forfeited and other (0.226) 30.20 Outstanding at March 30, 2019 0.998 $38.43 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Reconciliation of investments in equity securities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | Three months ended March 30, 2019 Balance at beginning of year $ 16.6 Increase in net asset value recorded to earnings 6.2 Proceeds received from partial distribution of investee (2.6 ) Balance at end of period $ 20.2 |
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 finance leases and deferred financing fees) not measured at fair value on a recurring basis as of March 30, 2019 and December 31, 2018 were as follows: March 30, 2019 December 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Term loan (1) $ 135.0 $ 135.0 $ 140.0 $ 140.0 5.625% Senior notes (1) 300.0 300.8 300.0 283.5 5.875% Senior notes (1) 300.0 300.8 300.0 279.4 Other indebtedness 24.5 24.5 26.5 26.5 (1) Carrying amount reflected herein excludes related deferred financing fees. |
BASIS OF PRESENTATION - Narrat
BASIS OF PRESENTATION - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 30, 2019USD ($)segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of business segments | segment | 3 |
Revenue recognized related to contract liabilities outstanding | $ | $ 68.9 |
BASIS OF PRESENTATION - Schedul
BASIS OF PRESENTATION - Schedule of Contract Balances (Details) $ in Millions | 3 Months Ended |
Mar. 30, 2019USD ($) | |
Increase (Decrase) In Contract With Customer Assets And Liabilities [Roll Forward] | |
Contract accounts receivable | $ 369.8 |
Change in contract accounts receivable | (2) |
Contract accounts receivable | 367.8 |
Contract assets | 69.3 |
Change in contract assets | (0.1) |
Contract assets | 69.2 |
Contract liabilities | 174.9 |
Change in contract liabilities | 5.4 |
Contract liabilities | 169.5 |
Net contract balance | (264.2) |
Change in net contract liabilities | 3.3 |
Net contract balance | $ (267.5) |
Percent change in contract accounts receivable | (0.50%) |
Percentage change in contract assets | (0.10%) |
Percentage change in contract liabilities | (3.10%) |
BASIS OF PRESENTATION - Remaini
BASIS OF PRESENTATION - Remaining Performance Obligation (Details) $ in Millions | Mar. 30, 2019USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Remaining performance obligation | $ 917.4 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-03-31 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Remaining performance obligation, percentage | 88.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction, period | 1 year |
NEW ACCOUNTING PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accumulated deficit | $ (254.6) | $ (274.1) | $ (265.6) |
ASU 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accumulated deficit | $ (8.5) | ||
Minimum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Remaining lease terms | 1 year | ||
Maximum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Remaining lease terms | 15 years |
NEW ACCOUNTING PRONOUNCEMENTS -
NEW ACCOUNTING PRONOUNCEMENTS - Components of Lease Assets and Liabilities (Details) $ in Millions | Mar. 30, 2019USD ($) |
Accounting Changes and Error Corrections [Abstract] | |
Finance lease ROU assets | $ 3.7 |
Operating lease ROU assets | 65.4 |
Current portion of operating lease liabilities | 20.8 |
Current portion of finance lease liabilities | 0.6 |
Long-term finance lease liabilities | 3.9 |
Long-term operating lease liabilities | $ 53.1 |
NEW ACCOUNTING PRONOUNCEMENTS_2
NEW ACCOUNTING PRONOUNCEMENTS - Components of Lease Expenses (Details) $ in Millions | 3 Months Ended |
Mar. 30, 2019USD ($) | |
Accounting Changes and Error Corrections [Abstract] | |
Operating lease cost | $ 6.1 |
Finance lease cost: | |
Amortization of leased assets | 0.1 |
Interest on lease liabilities | 0.1 |
Short-term lease cost | 0.9 |
Variable lease cost | 0.5 |
Total lease cost | $ 7.7 |
NEW ACCOUNTING PRONOUNCEMENTS_3
NEW ACCOUNTING PRONOUNCEMENTS - Schedule of Lease Liability, Maturity (Details) - USD ($) $ in Millions | Mar. 30, 2019 | Dec. 31, 2018 |
Operating leases | ||
2019 | $ 17.6 | |
2020 | 18.4 | |
2021 | 12.9 | |
2022 | 8.9 | |
2023 | 6.5 | |
Thereafter | 20.6 | |
Total lease payments | 84.9 | |
Less: interest | (11) | |
Present value of lease liabilities | 73.9 | |
Finance leases | ||
2019 | 0.6 | |
2020 | 0.8 | |
2021 | 0.8 | |
2022 | 0.8 | |
2023 | 0.7 | |
Thereafter | 1.7 | |
Total lease payments | 5.4 | |
Less: interest | (0.9) | |
Present value of lease liabilities | 4.5 | |
Total | ||
2019 | 18.2 | |
2020 | 19.2 | |
2021 | 13.7 | |
2022 | 9.7 | |
2023 | 7.2 | |
Thereafter | 22.3 | |
Total lease payments | 90.3 | |
Less: interest | (11.9) | |
Present value of lease liabilities | $ 78.4 | |
Operating leases | ||
2019 | $ 23.4 | |
2020 | 17.5 | |
2021 | 12.1 | |
2022 | 7.6 | |
2023 | 5.5 | |
Thereafter | 18 | |
Total lease payments | 84.1 | |
Capital leases | ||
2019 | 1.6 | |
2020 | 1.6 | |
2021 | 1.6 | |
2022 | 1.6 | |
2023 | 1.6 | |
Thereafter | 4.4 | |
Total lease payments | 12.4 | |
Less: interest | (1.6) | |
Present value of lease liabilities | $ 10.8 |
NEW ACCOUNTING PRONOUNCEMENTS_4
NEW ACCOUNTING PRONOUNCEMENTS - Schedule of Lease Terms and Discount Rate (Details) | Mar. 30, 2019 |
Weighted Average Remaining Lease Terms [Abstract] | |
Operating leases | 6 years |
Finance leases | 6 years 10 months |
Weighted-Average Discount Rate [Abstract] | |
Operating leases | 4.71% |
Finance leases | 5.85% |
NEW ACCOUNTING PRONOUNCEMENTS_5
NEW ACCOUNTING PRONOUNCEMENTS - Other Information (Details) $ in Millions | 3 Months Ended |
Mar. 30, 2019USD ($) | |
Accounting Changes and Error Corrections [Abstract] | |
Operating cash flows paid for operating leases | $ 6 |
Operating cash flows paid for finance leases | 0.1 |
Financing cash flows paid for finance leases | 0.3 |
Operating lease ROU assets obtained in exchange for new operating lease liabilities | 1.5 |
Finance lease ROU assets obtained in exchange for new finance lease liabilities | $ 0.6 |
NEW ACCOUNTING PRONOUNCEMENTS_6
NEW ACCOUNTING PRONOUNCEMENTS - Cumulative Effects as a Result of Adoption of New Accounting Standards Update (Details) - USD ($) $ in Millions | Mar. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Assets | |||
Other current assets | $ 39.1 | $ 43.1 | $ 44.3 |
Buildings and leasehold improvements | 226.5 | 224.9 | 232.1 |
Accumulated depreciation | (404.1) | (393.4) | (394.1) |
Other assets | 221.9 | 221.5 | 152.3 |
Liabilities | |||
Accrued expenses | 202.7 | 216.4 | 195.3 |
Current maturities of long-term debt | 20.6 | 20.5 | 21.2 |
Long-term debt | 711.7 | 716 | 722.1 |
Other long-term liabilities | 165.7 | 167.9 | 112.2 |
Equity | |||
Accumulated deficit | $ (254.6) | (274.1) | $ (265.6) |
ASU 2016-02 | |||
Assets | |||
Other current assets | (1.2) | ||
Buildings and leasehold improvements | (7.2) | ||
Accumulated depreciation | 0.7 | ||
Other assets | 69.2 | ||
Liabilities | |||
Accrued expenses | 21.1 | ||
Current maturities of long-term debt | (0.7) | ||
Long-term debt | (6.1) | ||
Other long-term liabilities | 55.7 | ||
Equity | |||
Accumulated deficit | (8.5) | ||
ASU 2016-02, Recognition of Operating Leases | |||
Assets | |||
Other current assets | (1.2) | ||
Buildings and leasehold improvements | 0 | ||
Accumulated depreciation | 0 | ||
Other assets | 71.8 | ||
Liabilities | |||
Accrued expenses | 20.2 | ||
Current maturities of long-term debt | 0 | ||
Long-term debt | 0 | ||
Other long-term liabilities | 50.4 | ||
Equity | |||
Accumulated deficit | 0 | ||
ASU 2016-02, Reclassification of Capital Lease to Operating Lease | |||
Assets | |||
Other current assets | 0 | ||
Buildings and leasehold improvements | (7.2) | ||
Accumulated depreciation | 0.7 | ||
Other assets | 5.8 | ||
Liabilities | |||
Accrued expenses | 0.9 | ||
Current maturities of long-term debt | (0.7) | ||
Long-term debt | (6.1) | ||
Other long-term liabilities | 5.3 | ||
Equity | |||
Accumulated deficit | (0.1) | ||
ASU 2016-02, Impairment of Operating Lease ROU Asset | |||
Assets | |||
Other current assets | 0 | ||
Buildings and leasehold improvements | 0 | ||
Accumulated depreciation | 0 | ||
Other assets | (8.4) | ||
Liabilities | |||
Accrued expenses | 0 | ||
Current maturities of long-term debt | 0 | ||
Long-term debt | 0 | ||
Other long-term liabilities | 0 | ||
Equity | |||
Accumulated deficit | $ (8.4) |
INFORMATION ON REPORTABLE SEG_3
INFORMATION ON REPORTABLE SEGMENTS, CORPORATE EXPENSE AND OTHER - Narrative (Details) | 3 Months Ended |
Mar. 30, 2019segmentcountry | |
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 SEG_4
INFORMATION ON REPORTABLE SEGMENTS, CORPORATE EXPENSE AND OTHER - Financial Data for Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Revenues: | ||
Total revenues | $ 491.1 | $ 490.3 |
Income: | ||
Total income for reportable segments | 36.8 | 33.2 |
Restructuring and other related charges | 5 | 2.6 |
Transferred Over Time | ||
Revenues: | ||
Total revenues | 120.5 | 109.2 |
Food and Beverage | ||
Revenues: | ||
Total revenues | 172.5 | 166.5 |
Food and Beverage | Transferred Over Time | ||
Revenues: | ||
Total revenues | 79.8 | 62.6 |
Power and Energy | ||
Revenues: | ||
Total revenues | 136.3 | 144.7 |
Power and Energy | Transferred Over Time | ||
Revenues: | ||
Total revenues | 24.7 | 27.9 |
Industrial | ||
Revenues: | ||
Total revenues | 182.3 | 179.1 |
Industrial | Transferred Over Time | ||
Revenues: | ||
Total revenues | 16 | 18.7 |
Reporting segments | ||
Revenues: | ||
Total revenues | 491.1 | 490.3 |
Income: | ||
Total income for reportable segments | 55.4 | 50.6 |
Reporting segments | Food and Beverage | ||
Revenues: | ||
Total revenues | 172.5 | 166.5 |
Income: | ||
Total income for reportable segments | 18.5 | 17.9 |
Restructuring and other related charges | 4.4 | 0.1 |
Reporting segments | Power and Energy | ||
Revenues: | ||
Total revenues | 136.3 | 144.7 |
Income: | ||
Total income for reportable segments | 9.8 | 12.2 |
Restructuring and other related charges | 0 | 2.1 |
Reporting segments | Industrial | ||
Revenues: | ||
Total revenues | 182.3 | 179.1 |
Income: | ||
Total income for reportable segments | 27.1 | 20.5 |
Restructuring and other related charges | 0.6 | 0.4 |
Other | ||
Income: | ||
Corporate expense | 13.3 | 14.4 |
Segment reconciling items | ||
Income: | ||
Pension and postretirement service costs | 0.3 | 0.4 |
Restructuring and other related charges | $ 5 | $ 2.6 |
INFORMATION ON REPORTABLE SEG_5
INFORMATION ON REPORTABLE SEGMENTS, CORPORATE EXPENSE AND OTHER - Disaggregated Information about Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Total revenues | $ 491.1 | $ 490.3 |
Food and Beverage | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 172.5 | 166.5 |
Power and Energy | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 136.3 | 144.7 |
Industrial | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 182.3 | 179.1 |
Original Equipment | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 308 | 299.8 |
Original Equipment | Food and Beverage | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 112.6 | 103.3 |
Original Equipment | Power and Energy | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 70.3 | 73.9 |
Original Equipment | Industrial | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 125.1 | 122.6 |
Aftermarket | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 183.1 | 190.5 |
Aftermarket | Food and Beverage | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 59.9 | 63.2 |
Aftermarket | Power and Energy | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 66 | 70.8 |
Aftermarket | Industrial | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 57.2 | 56.5 |
Original Equipment, Highly engineered systems | Food and Beverage | ||
Segment Reporting Information [Line Items] | ||
Total revenues | $ 62.6 | $ 54.1 |
RESTRUCTURING AND OTHER RELAT_3
RESTRUCTURING AND OTHER RELATED CHARGES - Schedule (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related charges | $ 5 | $ 2.6 |
Reporting segments | Food and Beverage | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related charges | 4.4 | 0.1 |
Reporting segments | Power and Energy | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related charges | 0 | 2.1 |
Reporting segments | Industrial | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other related charges | $ 0.6 | $ 0.4 |
RESTRUCTURING AND OTHER RELAT_4
RESTRUCTURING AND OTHER RELATED CHARGES - Narrative (Details) $ in Millions | Mar. 30, 2019USD ($) |
Restructuring and Related Activities [Abstract] | |
Expected charges to be incurred | $ 1 |
RESTRUCTURING AND OTHER RELAT_5
RESTRUCTURING AND OTHER RELATED CHARGES - Analysis of Restructuring Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Restructuring Liabilities | ||
Balance at beginning of year | $ 7.7 | $ 12.4 |
Restructuring and other related charges | 4.7 | 2.6 |
Utilization — cash | (0.4) | (3.8) |
Currency translation adjustment and other | 0 | 0.3 |
Balance at end of period | 12 | $ 11.5 |
Other | ||
Restructuring Liabilities | ||
Asset impairment and non-cash charges | $ 0.3 |
INVENTORIES, NET - Inventories
INVENTORIES, NET - Inventories (Details) - USD ($) $ in Millions | Mar. 30, 2019 | Dec. 31, 2018 |
Inventory, Net [Abstract] | ||
Finished goods | $ 102 | $ 93.7 |
Work in process | 103.5 | 98.8 |
Raw materials and purchased parts | 116.5 | 119.7 |
Total FIFO cost | 322 | 312.2 |
Excess of FIFO cost over LIFO inventory value | (7.4) | (7.4) |
Total inventories | $ 314.6 | $ 304.8 |
Domestic inventories, valued using the last-in, first-out method, as a percentage of total inventory | 9.00% | 8.00% |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2019 | Dec. 31, 2018 | |
Changes in the carrying amount of goodwill | ||
Beginning Balance | $ 744.3 | |
Impairments | 0 | |
Foreign Currency Translation and Other | (0.2) | |
Ending Balance | 744.1 | |
Food and Beverage | ||
Changes in the carrying amount of goodwill | ||
Beginning Balance | 261.5 | |
Impairments | 0 | |
Foreign Currency Translation and Other | (1.4) | |
Ending Balance | 260.1 | |
Power and Energy | ||
Changes in the carrying amount of goodwill | ||
Beginning Balance | 263.9 | |
Impairments | 0 | |
Foreign Currency Translation and Other | 3 | |
Ending Balance | 266.9 | |
Accumulated impairment included in carrying amount of goodwill | 251.2 | $ 248.5 |
Industrial | ||
Changes in the carrying amount of goodwill | ||
Beginning Balance | 218.9 | |
Impairments | 0 | |
Foreign Currency Translation and Other | (1.8) | |
Ending Balance | 217.1 | |
Accumulated impairment included in carrying amount of goodwill | $ 67.7 | $ 67.7 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Identifiable Intangible Assets (Details) - USD ($) $ in Millions | Mar. 30, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 320.6 | $ 320.1 |
Accumulated Amortization | (202.5) | (198.8) |
Net Carrying Value | 118.1 | 121.3 |
Total gross carrying value | 513.6 | 511.1 |
Total net carrying value | 311.1 | 312.3 |
Trademarks with indefinite lives | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Trademarks with indefinite lives | 193 | 191 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 218.9 | 218.1 |
Accumulated Amortization | (131.5) | (128.7) |
Net Carrying Value | 87.4 | 89.4 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 84.1 | 84.5 |
Accumulated Amortization | (54.7) | (54) |
Net Carrying Value | 29.4 | 30.5 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 6.7 | 6.7 |
Accumulated Amortization | (5.4) | (5.3) |
Net Carrying Value | 1.3 | 1.4 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 10.9 | 10.8 |
Accumulated Amortization | (10.9) | (10.8) |
Net Carrying Value | $ 0 | $ 0 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Goodwill [Line Items] | |||
Net carrying value of intangible assets with determinable lives | $ 118,100,000 | $ 121,300,000 | |
Impairment charges recorded | 0 | $ 0 | |
Trademarks with indefinite lives | |||
Goodwill [Line Items] | |||
Trademarks with indefinite lives | 193,000,000 | $ 191,000,000 | |
Power and Energy | |||
Goodwill [Line Items] | |||
Net carrying value of intangible assets with determinable lives | 68,500,000 | ||
Power and Energy | Trademarks with indefinite lives | |||
Goodwill [Line Items] | |||
Trademarks with indefinite lives | 34,800,000 | ||
Food and Beverage | |||
Goodwill [Line Items] | |||
Net carrying value of intangible assets with determinable lives | 32,500,000 | ||
Food and Beverage | Trademarks with indefinite lives | |||
Goodwill [Line Items] | |||
Trademarks with indefinite lives | 98,700,000 | ||
Industrial | |||
Goodwill [Line Items] | |||
Net carrying value of intangible assets with determinable lives | 17,100,000 | ||
Industrial | Trademarks with indefinite lives | |||
Goodwill [Line Items] | |||
Trademarks with indefinite lives | $ 59,500,000 |
EMPLOYEE BENEFIT PLANS - Compo
EMPLOYEE BENEFIT PLANS - Components of Net Periodic Pension and Postretirement Benefit Expense (Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Employee Benefit Plans | ||
Service cost | $ 0.3 | $ 0.4 |
Interest cost | 0.2 | 0.3 |
Total net periodic benefit expense | 0.5 | 0.7 |
Pension plan | ||
Employee Benefit Plans | ||
Domestic pension payments (less than) | 0.1 | 0.1 |
Foreign Plan | Pension plan | ||
Employee Benefit Plans | ||
Service cost | 0.3 | 0.2 |
Interest cost | 0.1 | 0.2 |
Total net periodic benefit expense | 0.4 | 0.4 |
United States | ||
Employee Benefit Plans | ||
Service cost | 0 | 0.2 |
Interest cost | 0.1 | 0.1 |
Total net periodic benefit expense | $ 0.1 | $ 0.3 |
INDEBTEDNESS - Schedule of Deb
INDEBTEDNESS - Schedule of Debt (Details) - USD ($) | 3 Months Ended | |
Mar. 30, 2019 | Dec. 31, 2018 | |
Short-term Debt [Line Items] | ||
Other indebtedness | $ 29,000,000 | $ 37,300,000 |
Less: short-term debt | 24,000,000 | 26,000,000 |
Debt Instrument [Line Items] | ||
Less: deferred financing fees | (7,700,000) | (8,000,000) |
Long-term debt and capital lease obligations | 756,300,000 | 769,300,000 |
Less: current maturities of long-term debt | 20,600,000 | 21,200,000 |
Total long-term debt | 711,700,000 | 722,100,000 |
Finance lease obligation | 4,500,000 | |
Capital lease obligation | 10,800,000 | |
Purchase card program | ||
Short-term Debt [Line Items] | ||
Other indebtedness | 22,100,000 | 23,000,000 |
Term loan | ||
Debt Instrument [Line Items] | ||
Domestic revolving loan facility | 135,000,000 | 140,000,000 |
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 (Deta
INDEBTEDNESS - Narrative (Details) - USD ($) | Mar. 30, 2019 | Dec. 31, 2018 |
Trade receivables financing arrangement | ||
Line of Credit Facility [Line Items] | ||
Available borrowing capacity | $ 27,300,000 | |
Maximum borrowing amount | 50,000,000 | |
Foreign line of credit | ||
Line of Credit Facility [Line Items] | ||
Outstanding letters of credit | 9,100,000 | |
Secured debt | Letter of credit | ||
Line of Credit Facility [Line Items] | ||
Outstanding letters of credit | 6,000,000 | |
Secured debt | Foreign line of credit | ||
Line of Credit Facility [Line Items] | ||
Available borrowing capacity | 396,100,000 | |
Outstanding letters of credit | $ 103,900,000 | |
Senior credit facility | Secured debt | ||
Line of Credit Facility [Line Items] | ||
Weighted average interest rate of outstanding borrowings | 4.20% | 4.30% |
Available borrowing capacity | $ 444,000,000 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
FX forward contracts | |||
Derivative [Line Items] | |||
Aggregate notional amount | $ 68.8 | $ 65.3 | |
Period contracts are scheduled to mature | 1 year | 1 year | |
Unrealized gains (losses), net of tax, recorded in AOCI | $ (0.1) | $ (0.3) | |
FX embedded derivatives | |||
Derivative [Line Items] | |||
Aggregate notional amount | 16.6 | 15.3 | |
Derivative contracts with scheduled maturities within one year | 16.4 | ||
Derivative contracts with scheduled maturities within two years | 0.2 | ||
Forward contracts | |||
Derivative [Line Items] | |||
Fair value of derivative contract, gross assets | 1.8 | 2.1 | |
Fair value of derivative contract, gross liabilities | 0.5 | $ 0.2 | |
Forward contracts | Other income (expense), net | |||
Derivative [Line Items] | |||
Net gains (losses) recorded in other income (expense), net | $ (1.2) | $ (4.3) | |
Minimum | FX embedded derivatives | |||
Derivative [Line Items] | |||
Period contracts are scheduled to mature | 1 year | ||
Maximum | FX embedded derivatives | |||
Derivative [Line Items] | |||
Period contracts are scheduled to mature | 2 years |
EQUITY AND STOCK-BASED COMPEN_3
EQUITY AND STOCK-BASED COMPENSATION - Income Per Share (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | ||
Weighted-average shares outstanding, basic (in shares) | 42,452 | 41,978 |
Dilutive effect of share-based awards (in shares) | 125 | 552 |
Weighted-average shares outstanding, dilutive (in shares) | 42,577 | 42,530 |
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 due to market threshhold requirement (in shares) | 0 | |
Securities not included in computation of diluted income per share due to internal performance threshholds (in shares) | 151 | 216 |
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) | 342 | 0 |
EQUITY AND STOCK-BASED COMPEN_4
EQUITY AND STOCK-BASED COMPENSATION - Stock-Based Compensation (Details) shares in Thousands | 3 Months Ended |
Mar. 30, 2019shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
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) | 754 |
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] | |
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 |
EQUITY AND STOCK-BASED COMPEN_5
EQUITY AND STOCK-BASED COMPENSATION - Compensation Expense Related to Share-based Programs (Details) - Selling, general and administrative expenses - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 3.2 | $ 5.1 |
Income tax benefit | (0.7) | (1.2) |
Stock-based compensation expense, net of income tax benefit | $ 2.5 | $ 3.9 |
EQUITY AND STOCK-BASED COMPEN_6
EQUITY AND STOCK-BASED COMPENSATION - Restricted Stock Unit Awards (Details) - Restricted stock shares and restricted stock units - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | Mar. 21, 2019 | Mar. 30, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Annual Expected Stock Price Volatility | 36.90% | |
Annual Expected Dividend Yield | 0.00% | |
Risk-free Interest Rate | 2.45% | |
Unvested Restricted Stock Shares and Restricted Stock Units | ||
Outstanding at beginning of year (in shares) | 1,176 | |
Granted (in shares) | 469 | |
Vested (in shares) | (421) | |
Forfeited and other (in shares) | (226) | |
Outstanding at the end of period (in shares) | 998 | |
Weighted-Average Grant-Date Fair Value Per Share | ||
Outstanding at beginning of year (in dollars per share) | $ 36.40 | |
Granted (in dollars per share) | 33.97 | |
Vested (in dollars per share) | 32.17 | |
Forfeited and other (in dollars per share) | 30.20 | |
Outstanding at the end of period (in dollars per share) | $ 38.43 | |
Unrecognized compensation cost | $ 27.1 | |
Weighted-average period cost expected to be recognized | 2 years 3 months 18 days | |
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 | $ 0.1274 | |
Weighted 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 | 0.4364 | |
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 | $ 0.7393 | |
Composite Group | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Annual Expected Stock Price Volatility | 28.10% | |
Risk-free Interest Rate | 2.45% |
EQUITY AND STOCK-BASED COMPEN_7
EQUITY AND STOCK-BASED COMPENSATION - Stock Options (Details) - Stock options - SPX FLOW stock options - USD ($) $ / shares in Units, shares in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options outstanding (in shares) | 342 | 342 |
Stock options exercisable (in shares) | 342 | |
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 |
EQUITY AND STOCK-BASED COMPEN_8
EQUITY AND STOCK-BASED COMPENSATION - Accumulated Other Comprehensive Loss and Common Stock in Treasury (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Common Stock in Treasury | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Common stock surrendered as a means of funding income tax withholding requirements | $ 5.1 | $ 4 | |
FX forward contracts | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Unrealized gains (losses), net of tax, recorded in AOCI | $ (0.1) | $ (0.3) |
LITIGATION, CONTINGENT LIABIL_2
LITIGATION, CONTINGENT LIABILITIES AND OTHER MATTERS - Narrative (Details) - USD ($) $ in Millions | Mar. 30, 2019 | Dec. 31, 2018 |
Commitments and Contingencies Disclosure [Abstract] | ||
Exercise value of put option outstanding | $ 21.2 | $ 21.5 |
Value options exercisable | $ 11.9 |
INCOME TAXES - Narrative (Deta
INCOME TAXES - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Valuation Allowance [Line Items] | ||
Unrecognized tax benefits | $ 5,300,000 | |
Unrecognized tax benefits, net | 2,900,000 | |
Unrecognized tax benefits that would impact effective tax rate | 2,900,000 | |
Unrecognized tax benefits, interest on income taxes accrued | 400,000 | |
Unrecognized tax benefits, interest on income taxes accrued, net | 300,000 | |
Unrecognized tax benefits, accrual for penalties | 0 | |
Income tax provision (benefit) | 10,700,000 | $ 800,000 |
Pre-tax income (loss) | $ 30,800,000 | $ 16,100,000 |
Effective income tax rate | 34.70% | 5.00% |
Impact of charge resulting from losses not expected to be realized, Nondeductible Expense, Impairment Losses, Amount | $ 2,100,000 | |
Income tax benefit, change to transition tax on accumulated foreign earnings, tax cuts and jobs act of 2017 | $ 9,400,000 | |
Change in transition tax calculation | 1,800,000 | |
Increase to liability for earnings not considered indefinitely reinvested, Amount | 1,100,000 | |
Charges related to pre-tax losses | $ 1,300,000 | |
Minimum | ||
Valuation Allowance [Line Items] | ||
Reasonably possible decrease in unrecognized tax benefits | 1,500,000 | |
Maximum | ||
Valuation Allowance [Line Items] | ||
Reasonably possible decrease in unrecognized tax benefits | $ 2,500,000 |
FAIR VALUE - Derivative Financ
FAIR VALUE - Derivative Financial Instruments (Details) - Forward contracts - USD ($) $ in Millions | Mar. 30, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Fair value of derivative contract, gross assets | $ 1.8 | $ 2.1 |
Fair value of derivative contract, gross liabilities | $ 0.5 | $ 0.2 |
FAIR VALUE - Equity Security I
FAIR VALUE - Equity Security Investment (Details) $ in Millions | 3 Months Ended |
Mar. 30, 2019USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balance at beginning of year | $ 16.6 |
Unrealized losses recorded to earnings | 6.2 |
Proceeds received from sale of investment | (2.6) |
Balance at end of period | $ 20.2 |
FAIR VALUE - Indebtedness and
FAIR VALUE - Indebtedness and Other (Details) - USD ($) $ in Millions | Mar. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other indebtedness | $ 24 | $ 26 |
Senior notes | 5.625% senior notes, due in August 2024 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
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] | ||
Stated interest rate | 5.875% | |
Fair value, measurements, nonrecurring | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Term loan | $ 135 | 140 |
Other indebtedness | 24.5 | 26.5 |
Fair value, measurements, nonrecurring | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Term loan | 135 | 140 |
Other indebtedness | 24.5 | 26.5 |
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 | 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 | 300.8 | 283.5 |
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 | $ 300.8 | $ 279.4 |
Uncategorized Items - spxf-2019
Label | Element | Value |
Restricted Cash | us-gaap_RestrictedCash | $ 1,200,000 |
Restricted Cash | us-gaap_RestrictedCash | 1,000,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (1,500,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (8,500,000) |
AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (7,300,000) |
Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (1,500,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (8,500,000) |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 5,800,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (8,500,000) |