Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 14, 2020 | Jun. 29, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 1-37393 | ||
Entity Registrant Name | SPX FLOW, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 47-3110748 | ||
Entity Address, Address Line One | 13320 Ballantyne Corporate Place | ||
Entity Address, Postal Zip Code | 28277 | ||
Entity Address, City or Town | Charlotte, | ||
Entity Address, State or Province | NC | ||
City Area Code | 704 | ||
Local Phone Number | 752-4400 | ||
Title of 12(b) Security | Common Stock, Par Value $0.01 | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,740 | ||
Entity Common Stock, Shares Outstanding | 42,583,491 | ||
Entity Central Index Key | 0001641991 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | FLOW | ||
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Revenues | $ 1,506.6 | $ 1,593.9 | $ 1,483.2 |
Cost of products sold | 986.2 | 1,080.7 | 995.7 |
Gross profit | 520.4 | 513.2 | 487.5 |
Selling, general and administrative | 372.8 | 366 | 377 |
Intangible amortization | 11.4 | 13.2 | 13.8 |
Asset impairment charges | 11.2 | 14.4 | 4.9 |
Restructuring and other related charges | 9.3 | 7.6 | 12.9 |
Operating income | 115.7 | 112 | 78.9 |
Other income (expense), net | (0.5) | (5.9) | 3.9 |
Interest expense, net | (29.7) | (34.3) | (46.2) |
Income from continuing operations before income taxes | 85.5 | 71.8 | 36.6 |
Income tax provision | (28.9) | (61.3) | (2.6) |
Income from continuing operations | 56.6 | 10.5 | 34 |
Less: Income (loss) from discontinued operations, net of tax | (149.7) | 34.2 | 12.8 |
Net income (loss) | (93.1) | 44.7 | 46.8 |
Less: Net income attributable to noncontrolling interests | 2 | 0.7 | 0.4 |
Net income (loss) attributable to SPX FLOW, Inc. | (95.1) | 44 | 46.4 |
Income from continuing operations, net of tax | 54.9 | 9.5 | 33 |
Income (loss) from discontinued operations, net of tax | $ (150) | $ 34.5 | $ 13.4 |
Basic and diluted income per share of common stock: | |||
Basic income (loss) per share of common stock from continuing operations (in dollars per share) | $ 1.29 | $ 0.23 | $ 0.79 |
Basic income (loss) per share of common stock from discontinued operations (in dollars per share) | (3.53) | 0.82 | 0.32 |
Basic income (loss) per share of common stock (in dollars per share) | (2.24) | 1.04 | 1.11 |
Diluted income (loss) per share of common stock from continuing operations (in dollars per share) | 1.29 | 0.22 | 0.78 |
Diluted income (loss) per share of common stock from discontinued operations (in dollars per share) | (3.51) | 0.81 | 0.32 |
Diluted income (loss) per share of common stock (in dollars per share) | $ (2.23) | $ 1.03 | $ 1.10 |
Weighted-average number of common shares outstanding - basic (in shares) | 42,465 | 42,197 | 41,799 |
Weighted-average number of common shares outstanding - diluted (in shares) | 42,686 | 42,633 | 42,183 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (93.1) | $ 44.7 | $ 46.8 |
Other comprehensive income (loss), net: | |||
Net unrealized gains (losses) on qualifying cash flow hedges, net of tax | 0.1 | (0.3) | 0 |
Foreign currency translation adjustments | 3.8 | (50.7) | 149.3 |
Other comprehensive income (loss), net | 3.9 | (51) | 149.3 |
Total comprehensive income (loss) | (89.2) | (6.3) | 196.1 |
Less: Total comprehensive income attributable to noncontrolling interests | 1.7 | 0.3 | 1.1 |
Total comprehensive income (loss) attributable to SPX FLOW, Inc. | $ (90.9) | $ (6.6) | $ 195 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and equivalents | $ 299.2 | $ 197 |
Accounts receivable, net | 243.1 | 278.4 |
Contract assets | 27.3 | 33.8 |
Inventories, net | 208.1 | 220.5 |
Other current assets | 32.2 | 33.3 |
Assets of discontinued operations - current | 464 | 244.4 |
Total current assets | 1,273.9 | 1,007.4 |
Property, plant and equipment: | ||
Land | 22.2 | 23.9 |
Buildings and leasehold improvements | 170.8 | |
Buildings and leasehold improvements | 175.5 | |
Machinery and equipment | 325.9 | |
Machinery and equipment | 336.8 | |
Property, plant, and equipment, gross | 518.9 | |
Property, plant and equipment, gross | 536.2 | |
Accumulated depreciation | (289) | |
Accumulated depreciation | (284.9) | |
Property, plant, and equipment, net | 229.9 | |
Property, plant and equipment, net | 251.3 | |
Goodwill | 545.1 | 550.4 |
Intangibles, net | 208.1 | 219.2 |
Other assets | 180.4 | 111.1 |
Assets of discontinued operations - long-term | 0 | 412.4 |
TOTAL ASSETS | 2,437.4 | 2,551.8 |
Current liabilities: | ||
Accounts payable | 142.6 | 157 |
Contract liabilities | 116.3 | 136.4 |
Accrued expenses | 162 | 149 |
Income taxes payable | 45.2 | 26.7 |
Short-term debt | 20.7 | 26 |
Current maturities of long-term debt | 0.1 | 20.8 |
Liabilities of discontinued operations - current | 220.5 | 133.4 |
Total current liabilities | 707.4 | 649.3 |
Long-term debt | 693.7 | 718.3 |
Deferred and other income taxes | 27.9 | 71.5 |
Other long-term liabilities | 115 | 67.5 |
Liabilities of discontinued operations - long-term | 0 | 60.6 |
Total long-term liabilities | 836.6 | 917.9 |
Commitments and contingent liabilities (Note 16) | ||
Mezzanine equity | 20.3 | 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, $0.01 par value, 300,000,000 shares authorized, 43,128,247 issued and 42,566,884 outstanding at December 31, 2019, and 42,932,339 issued and 42,542,888 outstanding at December 31, 2018 | 0.4 | 0.4 |
Paid-in capital | 1,677 | 1,662.6 |
Accumulated deficit | (369.2) | (265.6) |
Accumulated other comprehensive loss | (426.5) | (430.7) |
Common stock in treasury (561,363 shares at December 31, 2019, and 389,451 shares at December 31, 2018) | (19.3) | (13.9) |
Total SPX FLOW, Inc. shareholders' equity | 862.4 | 952.8 |
Noncontrolling interests | 10.7 | 10.3 |
Total equity | 873.1 | 963.1 |
TOTAL LIABILITIES, MEZZANINE EQUITY AND EQUITY | $ 2,437.4 | $ 2,551.8 |
CONSOLIDATED BALANCE SHEETS (PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Preferred stock, shares authorized (in shares) | 3,000,000 | 3,000,000 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares issued (in shares) | 43,128,247 | 42,932,339 |
Common stock, shares outstanding (in shares) | 42,566,884 | 42,542,888 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Treasury stock, shares (in shares) | 561,363 | 389,451 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Common Stock | Paid-In Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Loss | Common Stock in Treasury | Total SPX FLOW, Inc. Shareholders' Equity | Noncontrolling Interests |
Beginning balance (in shares) at Dec. 31, 2016 | 41,900,000 | |||||||
Beginning balance at Dec. 31, 2016 | $ 742.1 | $ 0.4 | $ 1,640.4 | $ (373.9) | $ (521.4) | $ (4.9) | $ 740.6 | $ 1.5 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 46.8 | 46.4 | 46.4 | 0.4 | ||||
Other comprehensive income (loss), net | 149.3 | 148.6 | 148.6 | 0.7 | ||||
Incentive plan activity (in shares) | 200,000 | |||||||
Incentive plan activity | 5.7 | 5.7 | 5.7 | |||||
Stock-based compensation expense | 15.9 | 15.9 | 15.9 | |||||
Restricted stock and restricted stock unit vesting, net of tax withholdings (in shares) | 300,000 | |||||||
Restricted stock and restricted stock unit vesting, net of tax withholdings | (7.3) | (3.3) | (4) | (7.3) | ||||
Adjustment to mezzanine equity and reclassification to noncontrolling interests | 0.4 | (7.8) | (7.8) | 8.2 | ||||
Dividends attributable to noncontrolling interests | (1.1) | (1.1) | ||||||
Ending balance (in shares) at Dec. 31, 2017 | 42,400,000 | |||||||
Ending balance at Dec. 31, 2017 | 951.8 | $ 0.4 | 1,650.9 | (327.5) | (372.8) | (8.9) | 942.1 | 9.7 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 44.7 | 44 | 44 | 0.7 | ||||
Other comprehensive income (loss), net | (51) | (50.6) | (50.6) | (0.4) | ||||
Incentive plan activity (in shares) | 0 | |||||||
Incentive plan activity | 2.4 | 2.4 | 2.4 | |||||
Stock-based compensation expense | 15.7 | 15.7 | 15.7 | |||||
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 | (5) | (5) | (5) | |||||
Adjustment to mezzanine equity and reclassification to noncontrolling interests | (0.7) | (0.7) | (0.7) | |||||
Acquisition of noncontrolling interest | (2.6) | (5.7) | (5.7) | 3.1 | ||||
Dividends attributable to noncontrolling interests | $ (2.8) | (2.8) | ||||||
Ending balance (in shares) at Dec. 31, 2018 | 42,542,888 | 42,500,000 | ||||||
Ending balance at Dec. 31, 2018 | $ 963.1 | $ 0.4 | 1,662.6 | (265.6) | (430.7) | (13.9) | 952.8 | 10.3 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (93.1) | (95.1) | (95.1) | 2 | ||||
Other comprehensive income (loss), net | 3.9 | 4.2 | 4.2 | (0.3) | ||||
Stock-based compensation expense | 13.7 | 13.7 | 13.7 | |||||
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 | (5.4) | (5.4) | (5.4) | |||||
Adjustment to mezzanine equity and reclassification to noncontrolling interests | 0.7 | 0.7 | 0.7 | |||||
Dividends attributable to noncontrolling interests | $ (1.3) | (1.3) | ||||||
Ending balance (in shares) at Dec. 31, 2019 | 42,566,884 | 42,600,000 | ||||||
Ending balance at Dec. 31, 2019 | $ 873.1 | $ 0.4 | $ 1,677 | $ (369.2) | $ (426.5) | $ (19.3) | $ 862.4 | $ 10.7 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (93.1) | $ 44.7 | $ 46.8 |
Less: Income (loss) from discontinued operations, net of tax | (149.7) | 34.2 | 12.8 |
Income from continuing operations | 56.6 | 10.5 | 34 |
Adjustments to reconcile income from continuing operations to net cash from operating activities: | |||
Restructuring and other related charges | 9.3 | 7.6 | 12.9 |
Asset impairment charges | 11.2 | 14.4 | 4.9 |
Deferred income taxes | 11.4 | 9.4 | (30.8) |
Depreciation and amortization | 38.3 | 41.7 | 43.7 |
Pension and employee benefits provided in stock | 7.3 | 2.3 | 5 |
Stock-based compensation | 12.5 | 14.1 | 14.6 |
Loss (gain) on asset sales and other, net | (0.3) | 0.3 | (2.9) |
Gain on change in fair value of investment in equity security | (7.8) | 0 | 0 |
Changes in operating assets and liabilities, net of effects from discontinued operations: | |||
Accounts receivable and other assets | 61.6 | (27.1) | 19.3 |
Contract assets and liabilities, net | (11.8) | 6.9 | 30.7 |
Inventories | 10.1 | (30.2) | (3.2) |
Accounts payable, accrued expenses and other | (60) | (10.7) | 17.7 |
Cash spending on restructuring actions | (8.3) | (11.2) | (30.9) |
Net cash from continuing operations | 130.1 | 28 | 115 |
Net cash from discontinued operations | 43.2 | 77.6 | 90 |
Net cash from operating activities | 173.3 | 105.6 | 205 |
Cash flows from (used in) investing activities: | |||
Proceeds from asset sales and other, net | 5 | 0 | 37.4 |
Capital expenditures | (28.5) | (19.2) | (16.2) |
Net cash from (used in) continuing operations | (23.5) | (19.2) | 21.2 |
Net cash used in discontinued operations | (7.5) | (6.3) | (3.2) |
Net cash from (used in) investing activities | (31) | (25.5) | 18 |
Cash flows used in financing activities: | |||
Borrowings under amended and restated senior credit facilities | 134 | 0 | 0 |
Repayments of amended and restated senior credit facilities | (34) | 0 | 0 |
Borrowings under former senior credit facilities | 33 | 78.8 | 125.5 |
Repayments of former senior credit facilities | (173) | (208.8) | (313.5) |
Borrowings under former trade receivables financing arrangement | 54 | 88.5 | 124.1 |
Repayments of former trade receivables financing arrangement | (54) | (88.5) | (145.3) |
Borrowings (Repayments) of Card Purchase Program, Net | (2.6) | 1.1 | 4 |
Borrowings under other financing arrangements | 0.2 | 4.1 | 4.6 |
Repayments of other financing arrangements | (2.9) | (3.2) | (12.5) |
Minimum withholdings paid on behalf of employees for net share settlements, net | (5.4) | (5) | (4) |
Financing fees paid | (3.3) | 0 | 0 |
Dividends paid to noncontrolling interests in subsidiary | (1.2) | (2.8) | (1.3) |
Net cash used in continuing operations | (55.2) | (135.8) | (218.4) |
Net cash used in discontinued operations | (0.6) | (0.5) | (0.2) |
Net cash used in financing activities | (55.8) | (136.3) | (218.6) |
Change in cash, cash equivalents and restricted cash due to changes in foreign currency exchange rates | 2.6 | 5.6 | 44.4 |
Net change in cash, cash equivalents and restricted cash | 89.1 | (50.6) | 48.8 |
Consolidated cash, cash equivalents and restricted cash, beginning of period | 214.3 | 264.9 | 216.1 |
Consolidated cash, cash equivalents and restricted cash, end of period | 303.4 | 214.3 | 264.9 |
Consolidated cash, cash equivalents and restricted cash | 303.4 | 264.9 | 264.9 |
Supplemental disclosure of cash flow information: | |||
Interest paid | 42.7 | 49.9 | 62.6 |
Income taxes paid, net | 33.6 | 23.8 | 12.2 |
Non-cash investing and financing activity: | |||
Debt assumed | $ 0.4 | $ 0.5 | $ 0 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Cash Flows [Abstract] | |||
Proceeds from Income Tax Refunds | $ 4.6 | $ 10.5 | $ 13.7 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Our significant accounting policies are described below, as well as in other Notes that follow. Basis of Presentation —The financial statements include SPX FLOW, Inc. and its consolidated subsidiaries’ (“SPX FLOW,” “the Company,” “we,” “us,” or “our”) accounts prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) after the elimination of intercompany transactions. We have reclassified certain prior year amounts, including the results of discontinued operations and reportable segment information, to conform to the current year presentation. Unless otherwise indicated, amounts provided in these Notes pertain to continuing operations. See Note 4 for information on discontinued operations and Note 5 for information on our reportable segments. Foreign Currency Translation and Transactions —The financial statements of our foreign subsidiaries are translated into U.S. dollars in accordance with the Foreign Currency Matters Topic of the Financial Accounting Standards Board Codification (“Codification” or “ASC”). Balance sheet accounts are translated at the current rate at the end of each period and income statement accounts are translated at the average rate for each period. Gains and losses on foreign currency translations are reflected as a separate component of equity and other comprehensive income (loss). Foreign currency transaction gains and losses, as well as gains and losses related to foreign currency forward contracts and currency forward embedded derivatives, are included in “Other income (expense), net,” with the related net losses totaling $3.1, $7.4 and $2.3 in 2019, 2018 and 2017, respectively. Cash Equivalents —We consider highly liquid money market investments with original maturities of three months or less at the date of purchase to be cash equivalents. Revenue Recognition: Revenue from Contracts with Customers (2019 and 2018 )—We adopted a new standard on revenue recognition effective January 1, 2018 that outlines a single comprehensive model for accounting for revenue arising from contracts with customers and supersedes most revenue recognition guidance. The core principle of the new standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in accordance with the transfer of control over those goods and services. The new standard also requires a number of disclosures intended to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue, and the related cash flows. See Note 6 for additional details regarding revenue from contracts with customers. Application of New Revenue Recognition Standard: Performance Obligations - Under the new revenue recognition standard, a contract with a customer is an agreement approved by both parties that creates enforceable rights and obligations, has commercial substance and includes identified payment terms under which collectability is probable. Once the Company has entered a contract with a customer, the contract is evaluated to identify performance obligations. Original equipment (“OE”) contracts recognized over time are typically accounted for as a single performance obligation due to the integration of equipment and components, including installation and commissioning of those products, that will together produce a combined output. For OE or aftermarket (“AM”) contracts recognized at a point in time, we evaluate whether we have promised to provide multiple distinct goods or services in the contract, which can include equipment, installation, commissioning, and service. Goods and services that are determined to be distinct are accounted for as separate performance obligations. If determined to be significant to the contract, installation and commissioning may be accounted for as a separate performance obligation. Performance obligations to provide service typically relate to maintenance, repair or upgrade activities to be performed on equipment we provide to customers. Service is typically determined to be a separate performance obligation satisfied as the service is completed. Shipping and handling are generally determined to be fulfillment activities and typically occur prior to when control of the underlying goods in a contract transfers to a customer. In the event we are required to perform shipping and handling activities after control of the goods transfers to a customer, we treat those obligations as fulfillment activities and accrue for the costs of performing the obligation when revenue on the related goods is recognized. Determination and Allocation of Transaction Price - We determine the transaction price for each contract based on the consideration we expect to receive for the products or services being provided under the contract. Certain OE contracts may vary in price due to variable consideration, primarily pertaining to late delivery penalties on OE contracts recognized over time and, to a lesser extent, OE contracts recognized at a point in time. We estimate variable consideration at the amount to which we expect to be entitled, which is included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur. Due to the customer- and contract-specific nature of late delivery penalties, we use the most likely amount method to measure variable consideration based on an assessment of key factors related to a contract program schedule and, for certain contracts, specific historical experience with customers. Actual amounts of consideration ultimately received may differ from our estimates. If actual results vary from our estimates, we will adjust these estimates, which would affect revenue and earnings in the period such variances become known. The total transaction price is allocated to each performance obligation in an amount based on the estimated relative standalone selling prices of the promised goods or services underlying each distinct performance obligation. In cases where we sell products with observable standalone selling prices, these selling prices are used to determine the standalone selling price. In cases where we sell an engineered customer-specific solution, we typically use the expected cost-plus margin approach to estimate the standalone selling price of each distinct performance obligation. Payment Terms - Customer prepayments and progress billings are customary for certain OE contracts within most of our product lines, including generally those in which revenue is recognized over time and, to a lesser extent, OE contracts in which revenue is recognized at a point in time but for which products are manufactured and/or engineered over a period greater than six months. Customer prepayments and progress billings are not considered a significant financing component because they are intended to protect either our customers or us in the event that some or all of the obligations under the contract are not completed. Our customers are invoiced for products and services upon delivery or when contractual milestones are met, resulting in outstanding receivables with contractual payment terms from these customers. Payments on contracts with customer prepayments or progress billings are generally aligned with the milestones defined in the related contract, while payments for all other products and services typically occur 30 to 60 days after delivery occurs or services are completed. Returns and Customer Sales Incentives - We have certain arrangements that require us to estimate, at the time of sale, the amounts of variable consideration that should be excluded from revenue as (i) certain amounts are not expected to be collected from customers and/or (ii) the product may be returned. We rely primarily on historical experience and/or specific customer agreements to estimate these amounts at the time of shipment and to reduce the transaction price. Arrangements that may impact the consideration to be collected from customers primarily include volume rebates and early payment discounts. We establish provisions for estimated returns primarily based on contract terms and historical experience. Contract Costs - The Company recognizes an asset for the incremental costs of obtaining a contract with a customer if the Company expects the benefit of those costs to be longer than one year. The Company applies a practical expedient to expense costs as incurred for costs to obtain a contract when the amortization period is expected to be less than one year. These costs primarily include the Company's internal sales force compensation program; under the terms of this program these costs are generally earned and recognized at the time the revenue is recognized. Revenues Recognized Over Time - Certain of our businesses recognize revenues and profits from long-term construction/installation contracts over time. Such method requires estimates of future revenues and costs over the full term of product delivery. We measure our performance principally by the contract costs incurred to date as a percentage of the estimated total costs for that contract at completion. For OE contracts that are recognized over time, our customers generally contract with us to provide a service of integrating a complex set of tasks and components into a single project of a highly engineered and tailored capability that generally cannot be re-sold to another customer without significant re-engineering and/or re-work cost. Such contracts are accounted for as a single performance obligation. For aftermarket service contracts, our customers generally receive and consume the benefits of the service as we perform, or our performance enhances a customer-controlled asset. As noted above, we generally recognize revenue over time using costs incurred to date relative to total estimated costs at completion (“EAC’s”) for these OE and service contracts. This measure best depicts the transfer of control to customers continuously over time, which occurs as we incur costs related to satisfaction of performance obligation(s) under our contracts. This transfer of control over time is also supported by the work being either customer-owned throughout the life of the project or by termination clauses which allow us to recover costs incurred plus a reasonable profit. Revenues, including estimated profits, are recorded proportionally as costs are incurred. For certain long-term aftermarket maintenance contracts where we stand ready to perform at any time, we recognize revenue ratably over the life of the related contract. We have established controls and procedures to update project EAC’s for contracts recognized over time at least quarterly. Costs to fulfill include primarily labor, materials and subcontractors’ costs, as well as other direct costs. Our cost estimation process is based upon (i) historical experience, (ii) the professional judgment and knowledge of our engineers, project managers, and operations and financial professionals, and (iii) an assessment of key factors such as progress towards completion and the related program schedule, identified opportunities and risks and the related changes in estimates of revenues and costs. EAC adjustments are recognized in the period in which they become known, including the resulting impact on revenues and operating income. These adjustments may result from positive (or negative) project performance and may result in an increase (or decrease) in operating income during performance, depending on whether or not we are successful in mitigating risks surrounding the technical, schedule and cost aspects of those performance obligations or realizing related opportunities. If and when EAC costs exceed revenue to be earned on a project, a provision for the entire expected loss on the performance obligation is recognized in the period the loss is determined. The impact of EAC adjustments on our revenues and operating income was insignificant during 2019 and 2018. Revenues Recognized at a Point in Time - For OE and AM contracts recognized at a point in time, we generally determine that control transfers when the customer has obtained legal title and the risks and rewards of ownership, which is usually upon delivery based on FOB shipping terms. Although these types of contracts may contain multiple performance obligations, they are often satisfied at or near the same time, which can have the same effect as though the performance obligations were combined into a single performance obligation and allocated the total amount of the transaction price. For certain of our OE contracts recognized at a point in time, customer acceptance may be required before control transfers to the customer. Although products that require customer acceptance are often recognized over time, these products may also be recognized at a point in time when the contract does not provide us with an enforceable right to recover costs plus a reasonable profit margin in the event of contract termination. Customer acceptance provisions in our contracts with customers generally relate to promises to provide highly engineered products that require precise outputs or customer-defined performance capabilities. 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 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. 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). Revenue Recognition (2017) —In 2017, we recognized revenues from product sales upon shipment to the customer or, to a lesser extent, upon receipt by the customer, in accordance with agreed-upon customer terms. Revenues from long-term service contracts and maintenance arrangements were recognized on a straight-line basis over the agreement period. Certain of our businesses recognized revenues and profits from long-term construction/installation contracts under the percentage-of-completion method of accounting. Such method required estimates of future revenues and costs over the full term of product delivery. We measured our percentage-of-completion principally by the contract costs incurred to date as a percentage of the estimated total costs for that contract at completion. We recognized revenues for similar short-term contracts using the completed-contract method of accounting. Provisions for any estimated losses on uncompleted long-term contracts were made in the period in which such losses were determined. In the case of customer change orders for uncompleted long-term contracts, estimated recoveries were included for work performed in forecasting ultimate profitability on certain contracts. Due to uncertainties inherent in the estimation process, it was reasonably possible that completion costs, including those that arose from contract penalty provisions and final contract settlements, could be revised in the near-term. Such revisions to costs and income were recognized in the period in which the revisions were determined. Unbilled receivables arose when revenues had been recorded but the amounts had not been billed under the terms of the contracts. These amounts were recoverable from customers upon various measures of performance, including achievement of certain milestones, completion of specified units or completion of the contract. Claims related to long-term contracts were recognized as revenue only after we had determined that collection was probable and the amount could be reliably estimated. Claims made by us involved negotiation and, in certain cases, litigation or other dispute-resolution processes. In the event we incurred litigation or other dispute-resolution costs in connection with claims, such costs were expensed as incurred, although we might seek to recover these costs. Claims against us were recognized when a loss was considered probable and amounts were reasonably estimable. Research and Development Costs —The Company conducts research and development activities for the purpose of developing and improving new products. The related expenditures are expensed as incurred and totaled $18.5, $18.2 and $17.3 in 2019, 2018 and 2017, respectively, and are classified within selling, general and administrative expense within the consolidated statements of operations. Property, Plant and Equipment —Property, plant and equipment (“PP&E”) is stated at cost, less accumulated depreciation. We use the straight-line method for computing depreciation expense over the useful lives of PP&E, which do not exceed 40 years for buildings and range from 3 to 15 years for machinery and equipment. Depreciation expense, including amortization of finance leases (2019) and capital leases (2018 and 2017), was $26.9, $28.5 and $29.9 for the years ended December 31, 2019, 2018 and 2017, respectively. Leasehold improvements are amortized over the life of the related asset or the life of the lease, whichever is shorter. Impairments of PP&E, which represent non-cash asset write-downs, typically arise from business restructuring decisions that lead to the disposition of assets no longer required in the restructured business. For these situations, we recognize a loss when the carrying amount of an asset exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Fair values for assets subject to impairment testing are determined primarily by management, taking into consideration various factors including third-party appraisals, quoted market prices and previous experience. If an asset remains in service at the decision date, the asset is written down to its fair value, if impaired, and the net book value is depreciated over its remaining economic useful life. When we commit to a plan to sell an asset, including the initiation of a plan to locate a buyer, and it is probable that the asset will be sold within one year based on its current condition and sales price, depreciation of the asset is discontinued and the asset is classified as an asset held for sale. In addition, the asset is written down to its fair value less any selling costs, if impaired. Income Taxes —Deferred income tax assets and liabilities, as presented in the consolidated balance sheets, reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. We periodically assess whether deferred tax assets will be realized and the adequacy of deferred tax liabilities, including the results of local, state, federal or foreign statutory tax audits or estimates and judgments used. The Tax Cuts and Jobs Act (the “Tax Act”) was enacted on December 22, 2017 and significantly changed existing U.S. tax law, including numerous provisions that affect businesses. The Tax Act introduced changes that impacted U.S. corporate tax rates, certain deductions, credits and imposed a tax on the “deemed repatriation” (the “Transition Tax”) of all post-1986 earnings of foreign subsidiaries on which U.S. tax had previously been deferred. Given the widespread applicability of these changes to most U.S. companies, the Securities and Exchange Commission issued Staff Accounting Bulletin 118 (“SAB 118”) to assist registrants in addressing any uncertainty or diversity of views in applying ASC Topic 740 in the reporting period in which the Tax Act was enacted. SAB 118 provided registrants with the option of reporting a reasonable estimate for certain income tax effects of the Tax Act in situations in which a company did not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting required under ASC Topic 740. The reasonable estimate was reported as a provisional amount in a company’s financial statements during a “measurement period”. The measurement period began in the reporting period that included the Tax Act’s enactment date (the Company’s fourth quarter of 2017) and ended when a company obtained, prepared and analyzed the information that was needed in order to complete the accounting requirements under ASC Topic 740. During the measurement period, companies were to act in good faith to complete the accounting required under ASC Topic 740. SAB 118 provided that the measurement period should not, under any circumstances, extend for a period beyond one year from the enactment date. As a result, the Company completed the accounting for the Tax Act in the fourth quarter of 2018 and made disclosures related to the completed accounting for the Tax Act pursuant to SAB 118. Refer to Note 12 for additional discussion regarding the Company’s application of SAB 118. Derivative Financial Instruments —We use foreign currency forward contracts to manage our exposures to fluctuating currency exchange rates. Derivatives are recorded on the balance sheet and measured at fair value. For derivatives designated as hedges of the fair value of assets or liabilities, the changes in fair values of both the derivatives and the hedged items are recorded in current earnings. For derivatives designated as cash flow hedges, the effective portion of the changes in fair value of the derivatives is recorded in “Accumulated Other Comprehensive Loss” (“AOCL”) and subsequently recognized in earnings when the hedged items impact earnings. Changes in the fair value of derivatives not designated as hedges, and the ineffective portion of cash flow hedges, are recorded in current earnings. We do not enter into financial instruments for speculative or trading purposes. For those transactions that are designated as cash flow hedges, on the date the derivative contract is entered into, we document our hedge relationship, including identification of the hedging instruments and the hedged items, as well as our risk management objectives and strategies for undertaking the hedge transaction. We also assess, both at inception and quarterly thereafter, whether such derivatives are highly effective in offsetting changes in the fair value of the hedged item. See Notes 14 and 17 for further information. Cash flows from hedging activities are included in the same category as the items being hedged, which are primarily operating activities. Goodwill and Other Intangible Assets —Consistent with the requirements of the Intangible—Goodwill and Other Topic of the Codification, the fair values of our reporting units generally are estimated using discounted cash flow projections that we believe to be reasonable under current and forecasted circumstances, the results of which form the basis for making judgments about the recoverability of carrying values of the net assets of our reporting units. Other considerations are also incorporated, including comparable industry price multiples. The financial results of many of our businesses closely follow changes in the industries and end markets that they serve. Accordingly, we consider estimates and judgments that affect the future cash flow projections, including principal methods of competition such as volume, price, service, product performance and technical innovations and estimates associated with cost improvement initiatives, capacity utilization and assumptions for inflation and blended effective tax rates. Any significant change in market conditions and estimates or judgments used to determine expected future cash flows that indicate a reduction in carrying value may give rise to impairment in the period that the change becomes known. We perform our annual goodwill impairment testing during the fourth quarter in conjunction with our annual financial planning process, with such testing based primarily on events and circumstances existing as of the end of the third quarter. In addition, we test goodwill for impairment on a more frequent basis if there are indications of potential impairment. We perform our annual trademarks impairment testing during the fourth quarter in conjunction with our annual financial planning process, or on a more frequent basis if there are indications of potential impairment. The fair values of our trademarks are determined by applying estimated royalty rates to projected revenues, with the resulting cash flows discounted at a rate of return that reflects current market conditions. The basis for these projected revenues is the annual operating plan for each of the related businesses. Investments in Unconsolidated Companies —Investments in unconsolidated companies where we exercise significant influence but do not have control are accounted for using the equity method. In determining whether we are the primary beneficiary of a variable interest entity (“VIE”), we perform a qualitative analysis that considers the design of the VIE, the nature of our involvement and the variable interests held by other parties to determine which party has the power to direct the activities of the VIE that most significantly impact the entity's economic performance, and which party has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. We have interests in VIEs, primarily joint ventures, in which we are the primary beneficiary. The financial position, results of operations and cash flows of our VIEs are not material, individually or in the aggregate, in relation to our consolidated financial statements. Discontinued operations: Classification and Measurement - The Company classifies assets and liabilities of a business or asset group as held for sale, and the results of its operations as income (loss) from discontinued operations, net, for all periods presented, when (i) we commit to a plan to divest a business or asset group, actively begin marketing it for sale, and when it is deemed probable of occurrence within the next twelve months, and (ii) when the business or asset group reflects a strategic shift that has, or will have, a major effect on the Company’s operations and its financial results. In measuring the assets and liabilities held for sale, the Company evaluates which businesses or asset groups are being marketed for sale, including an allocation of goodwill using the relative fair values of those businesses or asset groups and any businesses or asset groups being retained, and inclusive of relevant cumulative foreign currency translation adjustments recorded in “Accumulated Other Comprehensive Loss” Allocation of Interest Expense to Discontinued Operations - In connection with the reclassification of a business to discontinued operations in 2019, we elected to allocate to discontinued operations a portion of our interest expense, including the amortization of deferred financing fees, related to the Company’s senior notes, senior credit facilities and former trade receivables financing arrangement. The allocation of the Company’s interest expense of these debt instruments was determined based on the proportional amount of average net assets of the discontinued operations to the Company’s average net assets during each period, with the Company’s average net assets determined excluding the average outstanding borrowings under such debt instruments during each period. See Note 4 for additional details regarding the Company’s discontinued operations. |
USE OF ESTIMATES
USE OF ESTIMATES | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
USE OF ESTIMATES | USE OF ESTIMATES The preparation of our consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues (e.g., our estimates related to contract revenues recognized over time described above) and expenses during the reporting period. We evaluate these estimates and judgments on an ongoing basis and base our estimates on experience, current and expected future conditions, third-party evaluations and various other assumptions that we believe are reasonable under the circumstances. The results of these estimates form the basis for making judgments about the carrying values of assets and liabilities as well as identifying and assessing the accounting treatment with respect to commitments and contingencies. Actual results may differ from the estimates and assumptions used in the consolidated financial statements and related notes. Listed below are certain significant estimates and assumptions used in the preparation of our consolidated financial statements. Certain other estimates and assumptions are further explained in the related notes. Accounts Receivable Allowances— We provide allowances for estimated losses on uncollectible accounts based on our historical experience and the evaluation of the likelihood of success in collecting specific customer receivables. Summarized below is the activity for the allowance for uncollectible accounts: Year ended December 31, 2019 2018 2017 Balance at beginning of year $ 9.0 $ 11.8 $ 11.2 Allowances provided 4.8 1.9 3.4 Write-offs, net of recoveries, credits issued and other (3.5) (4.7) (2.8) Balance at end of year $ 10.3 $ 9.0 $ 11.8 In addition, we maintain allowances for customer returns, discounts and invoice pricing discrepancies, with such allowances primarily based on historical experience. Inventory— We estimate losses for excess and/or obsolete inventory and the net realizable value of inventory based on the aging and historical utilization of the inventory and the evaluation of the likelihood of recovering the inventory costs based on anticipated demand and selling price. Long-Lived Assets and Intangible Assets Subject to Amortization— We continually review whether events and circumstances subsequent to the acquisition of any long-lived assets, or intangible assets subject to amortization, have occurred that indicate the remaining estimated useful lives of those assets may warrant revision or that the remaining balance of those assets may not be fully recoverable. If events and circumstances indicate that the long-lived assets should be reviewed for possible impairment, we use projections to assess whether future cash flows on an undiscounted basis related to the assets are likely to exceed the related carrying amount. We will record an impairment charge to the extent that the carrying value of the assets exceed their fair values as determined by valuation techniques appropriate in the circumstances, which could include the use of similar projections on a discounted basis. In determining the estimated useful lives of definite-lived intangibles, we consider the nature, competitive position, life cycle position, and historical and expected future operating cash flows of each acquired asset, as well as our commitment to support these assets through continued investment and legal infringement protection. Goodwill and Indefinite-Lived Intangible Assets —We test goodwill and indefinite-lived intangible assets for impairment annually during the fourth quarter and continually assess whether a triggering event has occurred to determine whether the carrying value exceeds the implied fair value. The fair value of reporting units is based generally on discounted projected cash flows, but we also consider factors such as comparable industry price multiples. We employ cash flow projections that we believe to be reasonable under current and forecasted circumstances, the results of which form the basis for making judgments about the carrying values of the reported net assets of our reporting units. The financial results of many of our businesses closely follow changes in the industries and end markets that they serve. Accordingly, we consider estimates and judgments that affect the future cash flow projections, including principal methods of competition, such as volume, price, service, product performance and technical innovations, as well as estimates associated with cost reduction initiatives, capacity utilization and assumptions for inflation and blended effective tax rates. Actual results may differ from these estimates under different assumptions or conditions. See Note 10 for further information, including discussion of impairment charges recorded in 2018, and our annual impairment test performed in the fourth quarter of 2019. See Note 4 for further discussion of pre-tax losses recorded in the third and fourth quarters of 2019 related to the net carrying value of our discontinued operations. Accrued Expenses— We make estimates and judgments in establishing accruals as required under GAAP. Summarized in the table below are the components of accrued expenses at December 31, 2019 and 2018. December 31, 2019 2018 Employee benefits (1) $ 57.7 $ 64.0 Current portion of operating lease liabilities 15.4 — Warranty 7.0 6.7 Restructuring 7.6 7.1 Other (2) 74.3 71.2 Total $ 162.0 $ 149.0 (1) Employee benefits consist of various employee-related items including, among other items, accrued bonus, vacation, payroll and payroll-related taxes. (2) Other consists of various items including, among other items, accruals for third-party commissions, sales and value-added taxes, interest, self-insurance obligations and freight costs. Legal— It is our policy to accrue for estimated losses from legal actions or claims when events exist that make the realization of the losses probable and they can be reasonably estimated. We do not discount legal obligations or reduce them by anticipated insurance recoveries. Environmental Remediation Costs— We expense costs incurred to investigate and remediate environmental issues unless they extend the economic useful lives of related assets. We record liabilities when it is probable that an obligation has been incurred and the amounts can be reasonably estimated. Our environmental accruals cover anticipated costs, including investigation, remediation and operation and maintenance of clean-up sites. Our estimates are based primarily on investigations and remediation plans established by independent consultants, regulatory agencies and potentially responsible third parties. We generally do not discount environmental obligations or reduce them by anticipated insurance recoveries. Self-Insurance— We are self-insured for certain of our workers' compensation, automobile, product, general liability and health costs and, thus, record an accrual for our retained liability. The liability for these programs is reflected in our consolidated balance sheets as of December 31, 2019 and 2018 within “Accrued expenses.” Warranty —In the normal course of business, we issue product warranties for specific products and provide for the estimated future warranty cost in the period in which the sale is recorded. We provide for the estimate of warranty cost based on contract terms and historical warranty loss experience that is periodically adjusted for recent actual experience. Because warranty estimates are forecasts that are based on the best available information, actual claims costs may differ from amounts provided. In addition, due to the seasonal fluctuations at certain of our businesses, the timing of warranty provisions and the usage of warranty accruals can vary period to period. We make adjustments to initial obligations for warranties as changes in the obligations become reasonably estimable. The following is an analysis of our product warranty accrual for the periods presented: Year ended December 31, 2019 2018 2017 Balance at beginning of year $ 7.0 $ 7.4 $ 7.1 Provisions 6.9 7.7 7.7 Usage (6.6) (7.8) (7.8) Currency translation adjustment — (0.3) 0.4 Balance at end of year 7.3 7.0 7.4 Less: Current portion of warranty 7.0 6.7 7.0 Non-current portion of warranty $ 0.3 $ 0.3 $ 0.4 Income Taxes— We review our income tax positions on a continuous basis and accrue for potential uncertain tax positions in accordance with the Income Taxes Topic of the Codification. Accruals for these uncertain tax positions are classified as “Deferred and other income taxes” in the accompanying consolidated balance sheets based on an expectation as to the timing of when the matter will be resolved. As events change or resolutions occur, these accruals are adjusted, such as in the case of audit settlements with taxing authorities. For tax positions where it is more likely than not that a tax benefit will be sustained, we record the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority, assuming such authority has full knowledge of all relevant information. These reviews also entail analyzing the realization of deferred tax assets. We establish a valuation allowance against deferred tax assets when, based on all available evidence, we believe that it is more likely than not that we will not realize a benefit associated with such assets. See Note 12 for further discussion of our accounting for income taxes and potential uncertain tax positions. Employee Benefit Plans— Certain of our employees participate in defined benefit pension and other postretirement plans we sponsor. The expense for these plans is derived from an actuarial calculation based on the plans' provisions and assumptions regarding discount rates and rates of increase in compensation levels. Discount rates for most of the plans are based on representative bond indices. Rates of increase in compensation levels are established based on expectations of current and foreseeable future increases in compensation. Independent actuaries are consulted in determining these assumptions. See Note 11 |
NEW ACCOUNTING PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Dec. 31, 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 Lease 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 8 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 2019” below for further details. Leases accounted for under the new standard have initial remaining lease terms of 1 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. See Note 7 for additional details regarding the Company’s leases. Summary of Effects of Lease Accounting Standard Update Adopted in 2019 The cumulative effects of the changes made to our consolidated balance sheet as of the beginning of 2019 as a result of the adoption of the accounting standard update on leases, including those included in continuing operations and discontinued operations, 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 $ 33.3 $ (0.9) $ — $ — $ (0.9) $ 32.4 Assets of discontinued operations - current 244.4 (0.3) — — (0.3) 244.1 Buildings and leasehold improvements 175.5 — (7.2) — (7.2) 168.3 Accumulated depreciation (284.9) — 0.7 — 0.7 (284.2) Other assets 111.1 57.2 5.8 (8.4) 54.6 165.7 Assets of discontinued operations - long-term 412.4 14.6 — — 14.6 427.0 Liabilities Accrued expenses 149.0 16.1 0.9 — 17.0 166.0 Current maturities of long-term debt 20.8 — (0.7) — (0.7) 20.1 Liabilities of discontinued operations - current 133.4 4.1 — — 4.1 137.5 Long-term debt 718.3 — (6.1) — (6.1) 712.2 Other long-term liabilities 67.5 40.2 5.3 — 45.5 113.0 Liabilities of discontinued operations - long-term 60.6 10.2 — — 10.2 70.8 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 has concluded that this amendment applies primarily to its “Accounts Receivable, net” balance and has performed an initial analysis of its historical accounts receivable collection history in order to assess the potential impact that application of the amendment may have on its accounts receivable reserves, when compared to accounts receivable reserves recognized as of December 31, 2019 based on our current accounts receivable reserve methodologies. Based on such analysis, the Company does not expect this amendment, upon its adoption effective January 1, 2020, to have a significant impact on its consolidated financial statements. In March 2018, the FASB issued an amendment to update the Codification and XBRL Taxonomy as a result of the Tax Act, and to incorporate SAB 118 as released by the SEC, which provides guidance for companies that were not able to complete their accounting for the income tax effects of the Tax Act in the period of enactment. This amendment was 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 consolidated financial statements during 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 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 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). Among 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 consolidated financial statements. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure | DISCONTINUED OPERATIONS We report business or asset groups as discontinued operations when, among other things, we commit to a plan to divest the business or asset group, we actively begin marketing the business or asset group, and when the sale of the business or asset group is deemed probable of occurrence within the next twelve months. Developments leading to executed agreement to sell former Power and Energy reportable segment On May 2, 2019, the Company announced that its Board of Directors had initiated a process to divest a substantial portion of the Company’s former Power and Energy reportable segment, excluding the Bran+Luebbe product line (collectively, the “Disposal Group”). In connection with this initiative, the Company intends to narrow its strategic focus by separating its process solutions technologies, comprised of its Food and Beverage and its Industrial reportable segments, plus the Bran+Luebbe product line, from its flow control application technologies, comprised of the Disposal Group. Given the specific capabilities that are unique to each category of technologies and businesses, the further intent of the Company is that each business will, through a process of separation, be positioned to improve its respective service to customers through the narrowing of such strategic focus. In connection with the May 2, 2019 announcement and our assessment of the continued development of the divestiture process throughout the remainder of our second quarter of 2019, and in accordance with the criteria described above, we reported the Disposal Group as “held-for-sale”, and a discontinued operation, effective as of the end of our second quarter. As the operations and organizational structure of the remaining business of Power and Energy (primarily the Bran+Luebbe product line as noted above) have been absorbed into the Industrial reportable segment, and the operating results of the Industrial reportable segment (now including the Bran+Luebbe product line) are regularly reviewed by the Company’s chief operating decision maker, we have reclassified the results of that remaining business into the Industrial reportable segment. The results of operations, cash flows, and assets and liabilities of our discontinued operations and our Industrial segment, for all periods presented in the accompanying consolidated financial statements, have been reclassified to conform to the current year presentation. During our third quarter of 2019, management evaluated indicators of fair value of the Disposal Group, including indications of fair value received from third parties in connection with the marketing of the business through the end of our third quarter. Based on developments associated with the marketing and divestiture process that arose during the Company’s third quarter, and indications of fair value received through the conclusion of the third quarter, the Company recorded a pre-tax loss of $52.0 to reduce the carrying value of the net assets of the Disposal Group, including relevant foreign currency translation adjustment balances recorded within “Accumulated Other Comprehensive Loss”, to estimated fair value less costs to sell. As this estimated loss on Disposal Group was determined not to be attributable to any individual components of the Disposal Group’s net assets, it was reflected as a valuation allowance against the total assets of the discontinued operations as of September 28, 2019. Execution of agreement to sell Disposal Group and related terms and conditions During our fourth quarter of 2019, we observed challenging credit markets associated with transactions for businesses similar to our former Power and Energy segment, and the market for cyclical assets in the oil, gas and power industries, and we elected to narrow the focus of our marketing and divestiture process to a single potential buyer for a pre-determined period. This narrowing of the divestiture process culminated in the Company, on November 24, 2019, entering into a Purchase and Sale Agreement (the “Sale Agreement”) with an affiliate of Apollo Global Management, LLC (the “Buyer”), pursuant to which the Company has agreed, indirectly through certain of its subsidiaries, to sell the businesses reflected as discontinued operations in the accompanying consolidated financial statements to the Buyer for a gross purchase price of $475.0 (the “Transaction”). The gross purchase price of $475.0 is subject to (i) reductions based upon the level of certain deductions of the Disposal Group at the closing date, and (ii) certain adjustments based upon the level of net working capital, cash and debt of the Disposal Group at the closing date. The deductions include, for example, components of the Contract Liabilities and certain other current and long-term liabilities of the Disposal Group, as well as deductions for budgeted but un-incurred capital expenditures and other business infrastructure costs measured over periods defined in the Sale Agreement, but in all cases expiring at the closing date. The completion of the Transaction is subject to certain customary closing conditions including, but not limited to, the expiration or termination of the waiting periods of certain anti-trust and/or anti-competition regulations both domestically and in certain non-U.S. jurisdictions in which the Disposal Group operates. The Sale Agreement contains customary termination provisions in favor of both parties, including a right to terminate the Sale Agreement if the closing of the Transaction has not occurred on or before July 24, 2020 (subject to extension by the mutual written agreement of the Company and the Buyer). We expect the Transaction to close in the first half of 2020. Concurrent with the closing of the Transaction, the parties will enter into certain ancillary agreements including, among others, a Transition Services Agreement (the “TSA”) and a Master Procurement Agreement (the “Procurement Agreement”). Under the TSA, SPX FLOW will provide the Buyer with certain specified services for varying periods in order to ensure an orderly transition of the business following the closing at agreed-upon prices or rates, which we believe approximate fair market value for such services. These services include, among others, certain information technology, finance and human resources services. The Procurement Agreement provides for purchases by SPX FLOW through May 2025 of certain filtration elements produced by a business unit of the Disposal Group at an above market value, resulting in the recording of an unfavorable contract liability of $5.0 as of December 31, 2019. The historical annual amount of such purchases by SPX FLOW businesses has varied at a level between €7.0 and €8.0. In addition, the Sale Agreement includes certain indemnification obligations which we believe are customary for transactions of this nature, including for certain tax obligations, to the extent such obligations relate to fiscal periods prior to the closing date and exceed amounts which are provided for in the balance sheet of the Disposal Group at closing. Loss on Disposal Group recognized in the fourth quarter of 2019 We recorded an additional pre-tax loss on Disposal Group of $149.0 during our fourth quarter to reduce the carrying value of the Disposal Group to our estimate of fair value (the net proceeds expected to be realized at closing), less estimated costs to sell. As this loss was determined not to be attributable to any individual components of the Disposal Group’s net assets, it was reflected as a valuation allowance against the total assets of the Disposal Group as of December 31, 2019. As noted above, this additional loss was attributable primarily to our observation of challenging credit markets associated with transactions for businesses similar to our former Power and Energy segment, and the market for cyclical assets in the oil, gas and power industries, during the fourth quarter. In addition to the net assets of the Disposal Group as of December 31, 2019, as disclosed in the table below, the Disposal Group has generated a cumulative foreign currency translation adjustment (“CTA”) balance of $155.0, which is included in the Company’s “Accumulated Other Comprehensive Loss” balance of $426.5 in our consolidated balance sheet as of December 31, 2019. The CTA balance of the Disposal Group was considered in our determination of our third and fourth quarter 2019 estimated loss on disposal, and will be included in the amounts divested by SPX FLOW at the closing. Our determination of the net proceeds expected to be realized at closing involves certain estimates and judgments based on, among other items: (i) our interpretation and application of key terms of the Sale Agreement, (ii) certain balance sheet amounts of the Disposal Group as of December 31, 2019, and (iii) certain projections of future business infrastructure costs to be incurred through an estimated future closing date. The balances of net working capital, cash and debt, and deductions, are subject to future change based on the operations of the Disposal Group from December 31, 2019 through the closing date, and future spending on business infrastructure and estimated costs to sell the business could differ from our estimates. As such, a change in the loss on disposal associated with the divestiture of the business could occur in a future period, including upon closing of the Transaction or thereafter. Other judgments and estimates, and reporting matters associated with discontinued operations In addition to calculating an estimate of net proceeds expected to be realized at closing, as described above, certain additional judgments and estimates, and other reporting matters related to discontinued operations, included matters discussed in the following paragraphs. As noted above, certain businesses of the former Power and Energy reportable segment, primarily related to the Bran+Luebbe product line, are being retained by SPX FLOW, and have been reclassified for all periods presented into the Industrial reportable segment. Based on our assessment of the estimated relative fair values of the Disposal Group and the Bran+Luebbe product line, we performed a re-allocation during 2019 of our former Power and Energy goodwill balance between the Disposal Group and the business being retained, which resulted in net increases in Industrial reportable segment goodwill of $70.0 and $70.6 as of December 31, 2018 and 2017, respectively, and corresponding reductions in the goodwill of the former Power and Energy reportable segment. Based on provisions contained in the Procurement Agreement and as noted above, certain SPX FLOW businesses will continue to purchase filtration elements from a business unit of the Disposal Group on a post-closing basis. Such product purchases will be made at agreed-upon prices, based on provisions contained in the Procurement Agreement, which exceed current estimated market prices. Accordingly, based on expected future purchase volumes, including anticipated minimum purchase volumes required through the term of the Procurement Agreement, and the differential between market and future contractual prices, we have estimated the incremental cost of such future purchases as an unfavorable purchase commitment and recorded a pre-tax loss of $5.0 as a component of the results of discontinued operations. The liability associated with such future purchase commitments is recorded within “Accrued Expenses” and “Other Long-Term Liabilities” of continuing operations. See Note 5 for disclosure of costs for certain centralized functions and services provided and/or administered by SPX FLOW that were previously charged to business units within the Disposal Group and which have been reclassified to Corporate Expense for all periods presented. We have reclassified such amounts as the costs generally represent the costs of employees who provided such centralized functions and services to the Disposal Group but who are expected to remain employees of SPX FLOW upon the disposition of the Disposal Group. In addition to any business-specific interest expense and income, the interest expense, net, of discontinued operations reflects an allocation of interest expense, including the amortization of deferred financing fees, related to the Company’s senior notes, senior credit facilities and former trade receivables financing arrangement. Interest expense related to such debt instruments and allocated to discontinued operations was $11.7, $13.1 and $16.3 for the years ended December 31, 2019, 2018 and 2017, respectively. The allocation of the Company’s interest expense of these debt instruments was determined based on the proportional amount of average net assets of the Disposal Group to the Company’s average net assets during each period, with the Company’s average net assets determined excluding the average outstanding borrowings under such debt instruments during each period. Interest expense of discontinued operations, including allocated interest, is reflected in the table below. During the fourth quarter of 2019 and based on a refinement of the definition of the business operations and legal entities to be included in the Disposal Group that resulted from execution of the Sale Agreement, we have reclassified certain net foreign currency losses of a legal entity based in Angola, previously included in the results of discontinued operations in prior quarterly periods, to continuing operations, as that legal entity is not subject to sale to the Buyer. Results, major classes of assets and liabilities, and significant non-cash operating items and capital expenditures of discontinued operations Income (loss) from discontinued operations for the years ended December 31, 2019, 2018 and 2017 were as follows: Year ended December 31, 2019 2018 2017 Revenues $ 489.7 $ 496.2 $ 468.3 Cost of products sold (1)(2) 353.2 353.0 339.4 Gross profit 136.5 143.2 128.9 Selling, general and administrative (1) 100.2 81.9 83.4 Intangible amortization (1) 1.9 3.9 3.8 Loss on Disposal Group (3) 201.0 — — Charge related to procurement agreement (3) 5.0 — — Asset impairment charges — 0.2 — Restructuring and other related charges — 0.8 1.5 Operating income (loss) (171.6) 56.4 40.2 Other income (expense), net (1.6) 0.4 (2.6) Interest expense, net (3) (11.8) (12.8) (16.3) Income (loss) from discontinued operations before income taxes (185.0) 44.0 21.3 Income tax benefit (provision) (4) 35.3 (9.8) (8.5) Income (loss) from discontinued operations, net of tax (149.7) 34.2 12.8 Less: Income (loss) attributable to noncontrolling interests 0.3 (0.3) (0.6) Income (loss) from discontinued operations, net of tax and noncontrolling interests $ (150.0) $ 34.5 $ 13.4 (1) During the six months ended December 31, 2019, depreciation of property, plant and equipment and amortization of intangible assets, related to our discontinued operations, were ceased, as the assets of the Disposal Group were classified as held-for-sale for the period. (2) During the year ended December 31, 2019, we recorded a charge to “Cost of products sold” of $17.0 related to the settlement and payment of a demand from a customer related to a project of the Disposal Group. See Note 1 6 for further information regarding this settlement and the related payment demand. (3) See previous paragraphs for further discussion regarding the (i) loss on Disposal Group. (ii) charge related to the Procurement Agreement to be entered into with the Buyer in connection with the Transaction, and (iii) the allocation of interest expense to discontinued operations. (4) During the year ended December 31, 2019, we recorded an income tax benefit of $35.3 on $185.0 of pre-tax loss from discontinued operations, resulting in an effective tax rate of 19.1%. The effective tax rate for 2019 was impacted by (i) a benefit of $30.2 resulting from basis differences that will be realized through the disposition of the held-for-sale assets and (ii) the effect that the majority of the pre-tax loss on Disposal Group and pre-tax charge related to the Procurement Agreement will not result in a tax benefit, such that only $9.7 of tax benefit was recognized on those pre-tax charges. During the year ended December 31, 2018, we recorded an income tax provision of $9.8 on $44.0 of pre-tax income from discontinued operations, resulting in an effective tax rate of 22.3%. During the year ended December 31, 2017, we recorded an income tax provision of $8.5 on $21.3 of pre-tax income from discontinued operations, resulting in an effective tax rate of 39.9%. The effective tax rate for 2017 was impacted by an expense of $0.8 resulting from losses occurring in certain jurisdictions for which the tax benefit of those losses is not expected to be recognized. The major classes of assets and liabilities, excluding intercompany balances, as they are excluded from the sale and expected to be settled prior to closing, classified as held-for-sale in the accompanying consolidated balance sheets, were as follows: December 31, 2019 December 31, 2018 ASSETS Current assets: Cash and equivalents $ 3.1 $ 16.3 Accounts receivable, net 99.4 97.3 Contract assets 43.0 35.5 Inventories, net 72.8 84.3 Other current assets 12.9 11.0 Total current assets 231.2 244.4 Property, plant and equipment, net 87.4 84.2 Goodwill 194.9 193.9 Intangibles, net 92.3 93.1 Other assets (1) 59.2 41.2 Total long-term assets (2) 433.8 412.4 Total assets, before valuation allowance 665.0 656.8 Less: valuation allowance (3) (201.0) — TOTAL ASSETS, net of valuation allowance (2) $ 464.0 $ 656.8 LIABILITIES Current liabilities: Accounts payable $ 46.6 $ 46.7 Contract liabilities 43.6 38.5 Accrued expenses (1) 52.6 46.3 Income taxes payable 1.6 1.5 Current maturities of long-term debt 0.5 0.4 Total current liabilities 144.9 133.4 Long-term debt 3.6 3.8 Deferred and other income taxes 13.6 12.1 Other long-term liabilities (1) 58.4 44.7 Total long-term liabilities (2) 75.6 60.6 TOTAL LIABILITIES (2) $ 220.5 $ 194.0 (1) As of December 31, 2019, “Other assets” included $13.1 of operating lease ROU assets, “Accrued expenses” included $4.2 of current portion of operating lease liabilities and “Other long-term liabilities” included $9.2 of long-term portion of operating lease liabilities, each related to the Company’s adoption of the new lease pronouncement effective January 1, 2019. (2) The total assets and liabilities of discontinued operations are classified in current assets and liabilities, respectively, in our consolidated balance sheet as of December 31, 2019, as the disposition of the Disposal Group is expected to occur within twelve months of that date. The assets and liabilities of discontinued operations are classified in their respective current or long-term classifications, respectively, in our consolidated balance sheet as of December 31, 2018, in accordance with the nature and underlying classification of such assets and liabilities, as the disposition of the Disposal Group did not occur within twelve months of that date. (3) See previous paragraphs for further discussion regarding the valuation allowance recorded as of December 31, 2019. The following table summarizes the significant non-cash operating items and capital expenditures reflected in cash flows of discontinued operations for the years ended December 31, 2019, 2018 and 2017: Year ended December 31, 2019 2018 2017 Loss on Disposal Group (1) $ 201.0 $ — $ — Charge related to procurement agreement (1) 5.0 — — Depreciation and amortization (2) 7.8 17.0 17.5 Impairment of long-lived assets — 0.2 — Capital expenditures 7.5 6.3 3.2 (1) See previous paragraphs for further discussion regarding the loss on Disposal Group and charge related to the Procurement Agreement. (2) As noted above, depreciation of property, plant and equipment and amortization of intangible assets were ceased during the six months ended December 31, 2019, as the assets of the Disposal Group were classified as held-for-sale for the period. |
INFORMATION ON REPORTABLE SEGME
INFORMATION ON REPORTABLE SEGMENTS, CORPORATE EXPENSE AND OTHER | 12 Months Ended |
Dec. 31, 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 process solutions at the heart of growing and sustaining our diverse communities with operations in over 30 countries and sales in over 140 countries around the world. The Company's product offering is concentrated in process technologies that perform mixing, blending, fluid handling, separation, thermal heat transfer and other activities that are integral to processes performed across a wide variety of sanitary and industrial markets. Prior to 2019, we aggregated our operating segments into three reportable segments. In connection with the expected closing of the Transaction in the first half of 2020 related to the substantial portion of our former Power and Energy reportable segment and its reclassification as a discontinued operation in 2019, we are no longer reporting the remaining business of Power and Energy as a separate reportable segment, as the operations and organizational structure of that remaining business (primarily the Bran+Luebbe product line as described in Note 4 ) have been absorbed into the Industrial reportable segment, and the operating results of the Industrial reportable segment (now including the Bran+Luebbe product line) are regularly reviewed by the Company’s chief operating decision maker. The results of that remaining business have been reclassified into the Industrial reportable segment in all periods presented. Accordingly, we have two reportable segments: the Food and Beverage segment and the Industrial segment. In determining our reportable 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. Revenues by reportable segment and geographic area represent sales to unaffiliated customers, and no one customer or group of customers that, to our knowledge, are under common control accounted for more than 10% of our consolidated revenues for any period presented. Intercompany revenues among our reportable segments are not significant. Identifiable assets by reportable segment are those used in the respective operations of each. Food and Beverage The Food and Beverage reportable segment operates in a regulated, global industry with customers who demand highly engineered, process 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 homogenizers, pumps, valves, separators and heat exchangers. We also design and assemble process systems that integrate many of these products for our customers. Key brands include APV, Gerstenberg Schroeder, Seital and Waukesha Cherry-Burrell. 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. Key brands include Airpel, APV, Bolting Systems, Bran+Luebbe, Deltech, Hankison, Jemaco, Johnson Pump, LIGHTNIN, Power Team and Stone. Corporate Expense Corporate expense generally relates to the cost of our Charlotte, NC corporate headquarters and our Asia Pacific center in Shanghai, China. Corporate expense also reflects stock-based compensation costs associated with corporate employees. Financial data for our reportable segments as of or for the years ended December 31, 2019, 2018 and 2017 were as follows: As of or for the Year Ended December 31, 2019 2018 2017 Revenues: Food and Beverage $ 702.9 $ 743.9 $ 715.9 Industrial 803.7 850.0 767.3 Total revenues $ 1,506.6 $ 1,593.9 $ 1,483.2 Income: Food and Beverage $ 90.5 $ 87.7 $ 74.9 Industrial 110.5 103.5 89.0 Total income for reportable segments $ 201.0 $ 191.2 $ 163.9 Corporate expense (1) 63.9 55.5 66.0 Pension and postretirement service costs 0.9 1.7 1.2 Asset impairment charges 11.2 14.4 4.9 Restructuring and other related charges 9.3 7.6 12.9 Consolidated operating income $ 115.7 $ 112.0 $ 78.9 Capital expenditures: Food and Beverage $ 5.2 $ 7.4 $ 5.8 Industrial 9.2 8.8 5.3 Other (2) 14.1 3.0 5.1 Total capital expenditures $ 28.5 $ 19.2 $ 16.2 Depreciation and amortization: Food and Beverage $ 14.4 $ 16.1 $ 17.0 Industrial 15.5 16.9 17.1 Other (2) 8.4 8.7 9.6 Total depreciation and amortization $ 38.3 $ 41.7 $ 43.7 Identifiable assets: Food and Beverage $ 895.5 $ 889.2 $ 924.3 Industrial 781.3 787.5 832.3 Other (3) 296.6 218.3 206.8 Total identifiable assets $ 1,973.4 $ 1,895.0 $ 1,963.4 Geographic areas: Revenues (4) : United States $ 544.9 $ 531.2 $ 503.6 China 166.3 150.8 125.7 Germany 84.1 94.1 96.2 United Kingdom 132.7 91.2 92.5 Denmark 90.3 89.5 98.0 France 37.5 56.8 76.7 Other 450.8 580.3 490.5 Total revenues $ 1,506.6 $ 1,593.9 $ 1,483.2 Long-lived assets: United States $ 238.0 $ 219.6 $ 229.6 Other 172.3 142.8 149.7 Total long-lived assets $ 410.3 $ 362.4 $ 379.3 (1) Includes $7.1, $7.5 and $9.4 for the years ended December 21, 2019, 2018 and 2017, respectively, related to costs for certain centralized functions/services provided and/or administered by SPX FLOW that were previously charged to business units of which the related financial results of operations have been reclassified to discontinued operations. These centralized functions/services included, but were not limited to, information technology, shared services for accounting, payroll services, supply chain, and manufacturing and process improvement operations/ services. These costs generally represent the costs of employees who provided such centralized functions/services to the business units reclassified as discontinued operations but who are expected to remain employees of SPX FLOW upon the expected disposition of the discontinued operations. (2) Relates to corporate PP&E or PP&E that is utilized by both of our reportable segments along with related depreciation expense. Depreciation reflects the cost of our Charlotte, NC corporate headquarters, among other corporate PP&E. (3) Relates primarily to assets (e.g., cash and PP&E) of various corporate subsidiaries. (4) Revenues are included in the above geographic areas based on the country that recorded the customer revenue. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | REVENUE FROM CONTRACTS WITH CUSTOMERS As discussed in Note 1 , the Company adopted a new revenue recognition standard effective January 1, 2018. This new standard requires a number of disclosures intended to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue, and the related cash flows, which are included below as of and for the years ended December 31, 2019 and 2018; disclosures required by previous revenue recognition guidance for the year ended December 31, 2017 are also noted in further detail below. Revenues recognized over time: The following table provides revenues recognized over time by reportable segment for the the years ended December 31, 2019 and 2018: Year ended December 31, 2019 2018 Revenues recognized over time: Food and Beverage $ 282.9 $ 309.0 Industrial 60.8 94.3 Total revenues recognized over time $ 343.7 $ 403.3 Disaggregated Information about Revenues: Our aftermarket revenues generally include sales of parts and service/maintenance support, and OE revenues generally include all other revenue streams. The following tables provide disaggregated information about our OE, including Food and Beverage systems, and aftermarket revenues by reportable segment for the years ended December 31, 2019 and 2018: Year ended December 31, 2019 Year ended December 31, 2018 Original Equipment Aftermarket Total Revenues Original Equipment Aftermarket Total Revenues Food and Beverage $ 453.6 (1) $ 249.3 $ 702.9 $ 491.8 (1) $ 252.1 $ 743.9 Industrial 540.8 262.9 803.7 575.6 274.4 850.0 Total revenues $ 994.4 $ 512.2 $ 1,506.6 $ 1,067.4 $ 526.5 $ 1,593.9 (1) Includes $243.9 and $280.9 for the years ended December 31, 2019 and 2018, respectively, of revenue realized from the sale of highly engineered Food and Beverage systems. Contract Balances: Our contract accounts receivable, assets and liabilities as of December 31, 2019 and 2018, respectively, and changes in such balances, were as follows: December 31, 2019 December 31, 2018 Change (1) Contract accounts receivable (2) $ 231.9 $ 263.9 $ (32.0) Contract assets 27.3 33.8 (6.5) Contract liabilities (116.3) (136.4) 20.1 Net contract balance $ 142.9 $ 161.3 $ (18.4) (1) The $18.4 decrease in our net contract balance from December 31, 2018 to December 31, 2019 was primarily due to the timing of advance and milestone payments received on certain Food and Beverage 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 consolidated balance sheets. Amounts are presented before consideration of the allowance for uncollectible accounts. During the years ended December 31, 2019 and 2018, we recognized revenues of $124.0 and $140.0 related to contract liabilities outstanding as of December 31, 2018 and January 1, 2018, respectively. Contract Costs: As of December 31, 2019 and 2018, the Company recognized an asset related to the incremental costs of obtaining contracts with customers of $0.4, which is classified in “Other current assets” in our consolidated balance sheets. Remaining Performance Obligations: As of December 31, 2019 and 2018, the aggregate amount of our remaining performance obligations was $519.2 and $577.5, respectively. The Company expects to recognize revenue on approximately 90% and substantially all of our remaining performance obligations outstanding as of December 31, 2019 within the next 12 and 24 months, respectively. Revenues recognized under the percentage-of-completion method (2017): The Company recognized $234.8 in revenues under the percentage-of-completion method for the year ended December 31, 2017. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | LEASES As discussed in Note 3 , the Company adopted a new lease accounting standard effective January 1, 2019. This new standard requires a number of disclosures which are included below as of and for the year ended December 31, 2019; disclosures required by previous lease accounting guidance as of and for the years ended December 31, 2018 and 2017 are also noted in further detail below. The components of operating and finance lease ROU assets and liabilities as of December 31, 2019 were as follows: December 31, 2019 Balance Sheet Caption in Which Balance is Reported Finance lease ROU assets $ 0.5 Property, plant and equipment, net Operating lease ROU assets 48.8 Other assets Current portion of operating lease liabilities 15.4 Accrued expenses Current portion of finance lease liabilities 0.1 Current maturities of long-term debt Long-term finance lease liabilities 0.5 Long-term debt Long-term operating lease liabilities 40.4 Other long-term liabilities Assets held through finance lease agreements at December 31, 2019 and capital lease agreements at December 31, 2018 comprise the following: December 31, 2019 2018 Buildings $ 0.4 $ 7.5 Machinery and equipment 0.5 0.3 Total 0.9 7.8 Less: accumulated depreciation (0.4) (1.0) Net book value $ 0.5 $ 6.8 Our current and long-term capital lease obligations as of December 31, 2018 were $0.8 and $6.4, respectively. The components of lease expense for the year ended December 31, 2019 were as follows: Year ended December 31, 2019 (1) Operating lease cost (2) $ 18.9 Short-term lease cost (2) 2.7 Variable lease cost (2) 0.7 Total lease cost $ 22.3 (1) Finance lease costs, including amortization of finance lease ROU assets and interest on finance lease liabilities, were less than $0.1 individually, for the year ended December 31, 2019. (2) Included in “Cost of products sold” and “Selling, general and administrative” in our consolidated statement of operations. Total operating lease expense, inclusive of rent based on scheduled rent increases and rent holidays recognized on a straight-line basis, was $23.6 in 2018 and $23.9 in 2017. The future lease payments under operating and finance leases with initial remaining terms in excess of one year as of December 31, 2019 were as follows: Year Ending December 31, Operating leases Finance leases Total 2020 $ 16.5 $ 0.2 $ 16.7 2021 12.1 0.2 12.3 2022 8.7 0.1 8.8 2023 6.6 0.1 6.7 2024 9.3 0.1 9.4 Thereafter 10.5 — 10.5 Total lease payments 63.7 0.7 64.4 Less: interest 7.9 0.1 8.0 Present value of lease liabilities $ 55.8 $ 0.6 $ 56.4 Key assumptions used in accounting for our operating and finance leases as of December 31, 2019 were as follows: December 31, 2019 Weighted-average remaining lease term (years): Operating leases 6.0 Finance leases 4.3 Weighted-average discount rate: Operating leases 4.49 % Finance leases 5.32 % Cash flows and non-cash activities related to our operating and finance leases for the year ended December 31, 2019 were as follows: Year ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid for operating leases $ 19.3 Operating cash flows paid for finance leases — Financing cash flows paid for finance leases 0.1 Non-cash activities: Operating lease ROU assets obtained in exchange for new operating lease liabilities 13.9 Finance lease ROU assets obtained in exchange for new finance lease liabilities 0.4 |
Leases | LEASES As discussed in Note 3 , the Company adopted a new lease accounting standard effective January 1, 2019. This new standard requires a number of disclosures which are included below as of and for the year ended December 31, 2019; disclosures required by previous lease accounting guidance as of and for the years ended December 31, 2018 and 2017 are also noted in further detail below. The components of operating and finance lease ROU assets and liabilities as of December 31, 2019 were as follows: December 31, 2019 Balance Sheet Caption in Which Balance is Reported Finance lease ROU assets $ 0.5 Property, plant and equipment, net Operating lease ROU assets 48.8 Other assets Current portion of operating lease liabilities 15.4 Accrued expenses Current portion of finance lease liabilities 0.1 Current maturities of long-term debt Long-term finance lease liabilities 0.5 Long-term debt Long-term operating lease liabilities 40.4 Other long-term liabilities Assets held through finance lease agreements at December 31, 2019 and capital lease agreements at December 31, 2018 comprise the following: December 31, 2019 2018 Buildings $ 0.4 $ 7.5 Machinery and equipment 0.5 0.3 Total 0.9 7.8 Less: accumulated depreciation (0.4) (1.0) Net book value $ 0.5 $ 6.8 Our current and long-term capital lease obligations as of December 31, 2018 were $0.8 and $6.4, respectively. The components of lease expense for the year ended December 31, 2019 were as follows: Year ended December 31, 2019 (1) Operating lease cost (2) $ 18.9 Short-term lease cost (2) 2.7 Variable lease cost (2) 0.7 Total lease cost $ 22.3 (1) Finance lease costs, including amortization of finance lease ROU assets and interest on finance lease liabilities, were less than $0.1 individually, for the year ended December 31, 2019. (2) Included in “Cost of products sold” and “Selling, general and administrative” in our consolidated statement of operations. Total operating lease expense, inclusive of rent based on scheduled rent increases and rent holidays recognized on a straight-line basis, was $23.6 in 2018 and $23.9 in 2017. The future lease payments under operating and finance leases with initial remaining terms in excess of one year as of December 31, 2019 were as follows: Year Ending December 31, Operating leases Finance leases Total 2020 $ 16.5 $ 0.2 $ 16.7 2021 12.1 0.2 12.3 2022 8.7 0.1 8.8 2023 6.6 0.1 6.7 2024 9.3 0.1 9.4 Thereafter 10.5 — 10.5 Total lease payments 63.7 0.7 64.4 Less: interest 7.9 0.1 8.0 Present value of lease liabilities $ 55.8 $ 0.6 $ 56.4 Key assumptions used in accounting for our operating and finance leases as of December 31, 2019 were as follows: December 31, 2019 Weighted-average remaining lease term (years): Operating leases 6.0 Finance leases 4.3 Weighted-average discount rate: Operating leases 4.49 % Finance leases 5.32 % Cash flows and non-cash activities related to our operating and finance leases for the year ended December 31, 2019 were as follows: Year ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid for operating leases $ 19.3 Operating cash flows paid for finance leases — Financing cash flows paid for finance leases 0.1 Non-cash activities: Operating lease ROU assets obtained in exchange for new operating lease liabilities 13.9 Finance lease ROU assets obtained in exchange for new finance lease liabilities 0.4 |
RESTRUCTURING AND OTHER RELATED
RESTRUCTURING AND OTHER RELATED CHARGES | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Related Charges | RESTRUCTURING AND OTHER RELATED CHARGESAs part of our business strategy, we periodically right-size and consolidate operations to improve long-term results. Additionally, from time to time, we alter our business model to better serve customer demand, discontinue lower-margin product lines and rationalize and consolidate manufacturing capacity. Our restructuring and integration decisions are based, in part, on discounted cash flows and are designed to achieve our goals of reducing structural footprint and maximizing profitability. Restructuring and other related charges of $9.3 and $7.6 during 2019 and 2018, respectively, included, among other actions described below, severance and other costs associated with the rationalization of a business primarily associated with the execution of large dry-dairy systems projects in the Food and Beverage segment, initiated during the fourth quarter of 2018 and then subsequently broadened during 2019. See Note 10 below for intangible and tangible long-lived asset impairment charges recognized during the fourth quarter of 2018 which also resulted from management’s conclusion to rationalize this business and reduce the Company’s exposure to this market. During 2017, we finalized our execution of a multi-year plan to transition our enterprise to an operating company. As part of this plan, we announced our intent to further optimize our global footprint, streamline business processes and reduce selling, general and administrative expense through a global realignment program. The realignment program was intended to reduce costs across operating sites and corporate and global functions, in part by making structural changes and process enhancements which allow us to operate more efficiently. Restructuring and other related charges of $12.9 in 2017 were substantially associated with this program and included costs associated primarily with employee termination and facility consolidation. The components of the charges have been computed based on expected cash payouts, including severance and other employee benefits based on existing severance policies, local laws, and other estimated exit costs. Liabilities for exit costs including, among other things, severance and other employee benefit costs, are measured initially at their fair value and recorded when incurred. With the exception of certain employee termination obligations, which are not material to our consolidated financial statements, we anticipate that liabilities related to restructuring actions as of December 31, 2019 will be paid within one year from the period in which the action was initiated. Restructuring and other related charges for the years ended December 31, 2019, 2018 and 2017 are described in more detail below and in the applicable sections that follow: Year ended December 31, 2019 2018 2017 Employee termination costs $ 9.3 $ 6.6 $ 10.0 Facility consolidation costs — 1.0 2.9 Total $ 9.3 $ 7.6 $ 12.9 Restructuring and Other Related Charges by Reportable Segment 2019 Charges: Employee Termination Costs Facility Consolidation Costs Total Restructuring and Other Related Charges Food and Beverage $ 3.9 $ — $ 3.9 Industrial 3.1 — 3.1 Other 2.3 — 2.3 Total $ 9.3 $ — $ 9.3 Food and Beverage —Charges for 2019 related primarily to severance and other costs associated with (i) the further rationalization, initiated during the fourth quarter of 2018, of a business associated with the execution of large dry-dairy systems projects, as well as (ii) the closure of a facility in South America. Once completed, these restructuring activities are expected to result in the termination of approximately 40 employees. Industrial —Charges for 2019 related primarily to severance and other costs associated with (i) the closure of a manufacturing facility in the U.S. and consolidation and relocation of that facility into an existing manufacturing facility in the same region, (ii) certain operations personnel in the EMEA region, and (iii) the closure of a sales office and service center in North America. Once completed, these restructuring activities are expected to result in the termination of approximately 70 employees. Other —Charges for 2019 related primarily to severance and other costs associated with the rationalization of certain corporate support functions. Once completed, these restructuring activities are expected to result in the termination of approximately 20 employees. Expected charges still to be incurred under actions approved as of December 31, 2019 are approximately $0.5. 2018 Charges: Employee Termination Costs Facility Consolidation Costs Total Restructuring and Other Related Charges Food and Beverage $ 4.4 $ 0.9 $ 5.3 Industrial 2.3 0.1 2.4 Other (0.1) — (0.1) Total $ 6.6 $ 1.0 $ 7.6 Food and Beverage —Charges for 2018 related primarily to severance and other costs of $3.5 associated with the rationalization of the business associated with the execution of large dry-dairy systems projects described above. Charges also included severance and other costs related to the reorganization of the segment's commercial function in the EMEA region, and to a further consolidation of our facilities in Poland, including the lease cancellation and other exit costs of $0.8 associated with a former facility. These restructuring activities resulted in the termination of 58 employees. Industrial —Charges for 2018 related primarily to severance and other costs associated with (i) operations and commercial personnel in North America and the Asia Pacific region, partially offset by (ii) revisions of estimates related to certain previously announced restructuring activities. These restructuring activities resulted in the termination of 32 employees. 2017 Charges: Charges for 2017 noted below related to our global realignment program. Employee Termination Costs Facility Consolidation Costs Total Restructuring and Other Related Charges Food and Beverage $ 6.6 $ 1.6 $ 8.2 Industrial 3.6 1.3 4.9 Other (0.2) — (0.2) Total $ 10.0 $ 2.9 $ 12.9 Food and Beverage —Charges for 2017 related primarily to (i) charges associated with the consolidation and relocation of a manufacturing facility in Germany to an existing facility in Poland and (ii) severance and other costs associated with the reorganization and consolidation of certain commercial, engineering, operational and administrative functions across all regions in which the segment operates. These restructuring activities resulted in the termination of 91 employees. Charges for 2017 also included $0.6 related to lease cancellation costs for a portion of the leased space of a facility in the APAC region. Industrial —Charges for 2017 related primarily to severance and other costs associated with (i) the consolidation and relocation of the manufacturing operations of facilities in Sweden and the Netherlands to existing facilities in Poland and other locations and (ii) the reorganization and consolidation of certain commercial, engineering, operational and administrative functions across all regions in which the segment operates, partially offset by (iii) revisions of estimates for severance and other costs related to the previously planned consolidation and relocation of a manufacturing facility in the U.S. These restructuring activities resulted in the termination of 131 employees. The following is an analysis of our restructuring liabilities (included in “Accrued expenses” in our consolidated balance sheets) for the years ended December 31, 2019, 2018 and 2017: December 31, 2019 2018 2017 Balance at beginning of year $ 7.1 $ 10.7 $ 26.7 Restructuring and other related charges 9.3 7.6 12.9 Utilization — cash (8.3) (11.2) (30.9) Currency translation adjustment and other (0.5) — 2.0 Balance at end of year $ 7.6 $ 7.1 $ 10.7 |
INVENTORIES, NET
INVENTORIES, NET | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES, NET | INVENTORIES, NET Inventories at December 31, 2019 and 2018 comprised the following: December 31, 2019 2018 Finished goods $ 82.5 $ 79.1 Work in process 47.0 57.3 Raw materials and purchased parts 85.9 91.3 Total FIFO cost 215.4 227.7 Excess of FIFO cost over LIFO inventory value (7.3) (7.2) Total inventories $ 208.1 $ 220.5 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 11% of total inventory at December 31, 2019 and 2018. Other inventories are valued using the first-in, first-out (“FIFO”) method. |
GOODWILL, OTHER INTANGIBLE ASSE
GOODWILL, OTHER INTANGIBLE ASSETS, AND ASSET IMPAIRMENT CHARGES | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL, OTHER INTANGIBLE ASSETS, AND ASSET IMPAIRMENT CHARGES | GOODWILL, OTHER INTANGIBLE ASSETS, AND ASSET IMPAIRMENT CHARGES Goodwill The changes in the carrying amount of goodwill by reportable segment for the year ended December 31, 2019 were as follows: December 31, 2018 Impairments Foreign Currency Translation and Other December 31, 2019 Food and Beverage $ 261.5 $ — $ (4.0) $ 257.5 Industrial (1) 288.9 — (1.3) 287.6 Total $ 550.4 $ — $ (5.3) $ 545.1 (1) The carrying amount of goodwill included $133.6 of accumulated impairments as of December 31, 2019 and 2018. As noted above, in connection with the reclassification of the substantial portion of our former Power and Energy reportable segment (excluding primarily the Bran+Luebbe product line of that former segment) to discontinued operations, as discussed further in Note 4 , and the retention and reclassification of the Bran+Luebbe product line into our Industrial reportable segment, we performed a re-allocation of our former Power and Energy goodwill balance between the Disposal Group and the business being retained. This resulted in a net increase in Industrial reportable segment goodwill of $70.0 as of December 31, 2018 and a corresponding reduction in the goodwill of the former Power and Energy segment. The goodwill balance of the Industrial reportable segment as of December 31, 2018 reflects this reclassification. The changes in the carrying amount of goodwill by reportable segment for the year ended December 31, 2018 were as follows: December 31, 2017 Impairments Foreign Currency Translation and Other December 31, 2018 Food and Beverage $ 271.8 $ — $ (10.3) $ 261.5 Industrial (1) 297.7 — (8.8) 288.9 Total $ 569.5 $ — $ (19.1) $ 550.4 (1) The carrying amount of goodwill included $133.6 and $134.2 of accumulated impairments as of December 31, 2018 and 2017, respectively. As noted above, we performed a re-allocation of our former Power and Energy goodwill balance between the Disposal Group and the portion of that business being retained. This resulted in net increases in Industrial reportable segment goodwill of $70.0 and $70.6 as of December 31, 2018 and 2017, respectively, and corresponding reductions in the goodwill of the former Power and Energy segment. The goodwill balances of the Industrial reportable segment noted above reflect these reclassifications. Goodwill Impairment Tests Consistent with our accounting policy stated in Note 1 , we performed our annual goodwill impairment testing as of the first day of our fiscal fourth quarters of 2019 and 2018. The estimated fair value of both of our reporting units significantly exceeded its respective carrying value. See Note 4 for further discussion of management’s evaluation of the net carrying value of discontinued operations, relative to estimated fair value less costs to sell, in 2019. Other Intangibles, Net Identifiable intangible assets were as follows: December 31, 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 $ 124.7 $ (97.5) $ 27.2 $ 125.8 $ (90.2) $ 35.6 Technology 61.7 (46.6) 15.1 62.1 (43.5) 18.6 Patents 5.6 (4.5) 1.1 5.7 (4.3) 1.4 Other 8.1 (8.1) — 8.1 (8.1) — 200.1 (156.7) 43.4 201.7 (146.1) 55.6 Trademarks with indefinite lives 164.7 — 164.7 163.6 — 163.6 Total $ 364.8 $ (156.7) $ 208.1 $ 365.3 $ (146.1) $ 219.2 Amortization expense was $11.4, $13.2 and $13.8 for the years ended December 31, 2019, 2018 and 2017, respectively. Estimated amortization expense related to these intangible assets is $10.5 in 2020, $10.0 in 2021, $7.1 in 2022, $2.9 in 2023 and $2.4 in 2024. At December 31, 2019, the net carrying value of intangible assets with determinable lives consisted of the following by reportable segment: $27.6 in Food and Beverage and $15.8 in Industrial. Trademarks with indefinite lives consisted of the following by reportable segment: $98.3 in Food and Beverage and $66.4 in Industrial. Intangible Impairment Tests (2019 and 2018) and Charges (2018) Management performed its annual 2019 indefinite-lived intangible asset impairment test, performed as of the first day of our fiscal fourth quarter of 2019. Based on the results of our annual indefinite-lived intangible asset impairment testing in 2019, we determined that the estimated fair value of each of our indefinite-lived intangible assets exceeded its respective carrying value by at least 26%. Changes in the gross carrying values of trademarks and other identifiable intangible assets during 2019 related primarily to foreign currency translation. Management performed its annual 2018 indefinite-lived intangible asset impairment test, performed as of the first day of our fiscal fourth quarter of 2018. Based on the results of this impairment testing in 2018, we determined that the estimated fair value of the trademark of a business associated with the execution of large dry-dairy systems projects in our Food and Beverage segment was impaired. Concurrently, during the fourth quarter of 2018, management concluded to rationalize this business, and we recorded an impairment charge of $8.3 related to the technology assets and of $1.4 related to the trademark associated with this business. Each of our other indefinite-lived intangible assets exceeded its respective carrying value by at least 23%. Changes in the gross carrying values of trademarks and other identifiable intangible assets during 2018 related to these impairments and to foreign currency translation. Tangible Long-Lived Asset Impairment Charges 2019 Charges: Asset impairment charges for 2019 included primarily a tangible long-lived asset impairment charge of $10.8 that resulted from management’s decision to market a corporate asset for sale. That asset, which had an estimated fair value of $4.0, was marketed for sale beginning in the third quarter of 2019, and was subsequently sold during the fourth quarter of 2019 with no further impact to the Company’s results of operations. To a lesser extent, asset impairment charges included a charge of $0.2 related to the impairment of an ROU asset, resulting from the decision to close a sales and service facility of our Industrial segment in Denmark during the fourth quarter of 2019 and a tangible long-lived asset impairment charge of $0.2 in our Industrial segment. 2018 Charges: In addition to the $9.7 of intangible asset impairment charges noted above, asset impairment charges for 2018 included tangible long-lived asset impairment charges of $4.5 associated with the rationalization of the business associated with the execution of large dry-dairy systems projects described above and, to a lesser extent, $0.2 related to tangible long-lived assets in our Industrial segment. 2017 Charges: Asset impairment charges for 2017 included tangible long-lived asset impairment charges of $3.6 in connection with the sale of certain corporate assets during the year, $0.8 related to certain corporate-based information technology assets, and $0.5 related to a Food and Beverage segment product line which was exited and formerly based primarily in the EMEA region. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Defined Benefit Plans Overview —SPX FLOW sponsors a number of defined benefit pension plans that cover certain employees in foreign countries, principally in Europe, as well as certain domestic nonqualified pension and postretirement plans. 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. The plan year-end date for all our plans is December 31. Below is further discussion regarding our plans, including information on plan assets, employer contributions and benefit payments, obligations and funded status, and periodic pension and postretirement benefit expense (income). Plan Assets —Our investment strategy is based on the protection and long-term growth of principal while mitigating overall investment risk. Our foreign defined benefit pension plans’ assets, with fair values of $6.6 and $6.1 at December 31, 2019 and 2018, respectively, are invested in insurance contracts and classified as Level 3 assets in the fair value hierarchy. During 2019 and 2018, there were no transfers between levels of the fair value hierarchy for any of our plans, and no shares of SPX FLOW common stock were held by our defined benefit pension plans as of December 31, 2019 and 2018. Our domestic nonqualified pension and postretirement benefit plans are unfunded and therefore have no plan assets. Employer Contributions —Many of our foreign plan obligations are unfunded in accordance with local laws. These plans have no assets and instead are funded by us on a pay-as-you-go basis in the form of direct benefit payments. In 2019, we made contributions of $0.5 to our foreign plans that are funded. In addition, we made direct benefit payments of $2.1 related to our foreign plans that are unfunded. Our domestic nonqualified pension and postretirement plans are funded by us on a pay-as-you-go basis. We made direct benefit payments of $6.4 related to these plans in 2019. In 2020, we expect to make minimum required funding contributions of $0.5 and direct benefit payments of $2.0 related to our foreign pension plans and direct benefit payments of $0.1 related to our domestic nonqualified pension and postretirement benefit plans. Estimated Future Benefit Payments —Following is a summary, as of December 31, 2019, of the estimated future benefit payments for our foreign and domestic pension plans and our domestic postretirement plan in each of the next five fiscal years and in the aggregate for five fiscal years thereafter. Benefit payments are paid from plan assets or directly by us for our unfunded plans. Foreign Pension Benefits Domestic Pension Benefits Domestic Postretirement Benefits 2020 $ 2.4 $ — $ 0.1 2021 2.6 — 0.1 2022 2.1 — 0.1 2023 2.3 — 0.1 2024 2.3 — 0.1 Subsequent five years 13.3 2.8 0.6 The expected future benefit payments for our plans are estimated based on the same assumptions used at December 31, 2019 to measure our obligations and include benefits attributable to estimated future employee service, to the extent applicable. Obligations and Funded Status —The funded status of our pension plans is dependent upon many factors, including returns on invested assets and the level of market interest rates. The following tables show the foreign and domestic pension plans’ funded status and amounts recognized in our consolidated balance sheets: Foreign Pension Plans Domestic Pension Plan Domestic Postretirement Plan 2019 2018 2019 2018 2019 2018 Change in projected benefit obligation: Projected benefit obligation - beginning of year $ 47.3 $ 46.1 $ 10.7 $ 9.8 $ 4.0 $ 4.3 Service cost 0.8 0.6 — 1.0 0.1 0.1 Interest cost 0.7 0.7 0.2 0.3 0.2 0.2 Actuarial losses (gains) 4.5 (1.9) 0.7 (0.3) 0.4 (0.4) Benefits paid (2.4) (2.5) (6.3) — (0.1) — Recognition of plans previously accounted for as defined contribution plans — 6.1 — — — — Curtailment gains — — — (0.1) — (0.2) Foreign exchange and other (0.9) (1.8) — — — — Projected benefit obligation - end of year $ 50.0 $ 47.3 $ 5.3 $ 10.7 $ 4.6 $ 4.0 Foreign Pension Plans Domestic Pension Plan Domestic Postretirement Plan 2019 2018 2019 2018 2019 2018 Change in plan assets: Fair value of plan assets - beginning of year $ 6.1 $ 0.7 $ — $ — $ — $ — Actual return on plan assets 0.3 — — — — — Contributions (employer and employee) 0.6 0.3 — — — — Benefits paid (0.3) (0.3) — — — — Recognition of plans previously accounted for as defined contribution plans — 5.5 — — — — Foreign exchange and other (0.1) (0.1) — — — — Fair value of plan assets - end of year $ 6.6 $ 6.1 $ — $ — $ — $ — Funded status at year-end (43.4) (41.2) (5.3) (10.7) (4.6) (4.0) Amounts recognized in the consolidated balance sheets consist of: Accrued expenses (2.0) (2.0) — (6.2) (0.1) (0.1) Other long-term liabilities (41.4) (39.2) (5.3) (4.5) (4.5) (3.9) Net amount recognized $ (43.4) $ (41.2) $ (5.3) $ (10.7) $ (4.6) $ (4.0) Amount recognized in accumulated other comprehensive loss (pre-tax) consists of net prior service costs $ 0.1 $ 0.1 $ — $ — $ — $ — The accumulated benefit obligation for each foreign pension plan exceeded the fair value of its plan assets at December 31, 2019 and 2018. The accumulated benefit obligation for all foreign pension plans was $48.6 and $46.1 at December 31, 2019 and 2018, respectively. The accumulated benefit obligation for the domestic nonqualified pension plan was $5.3 and $10.7 at December 31, 2019 and 2018, respectively. The accumulated benefit obligation for the domestic postretirement plan was $4.6 and $4.0 at December 31, 2019 and 2018, respectively. Components of Net Periodic Pension and Postretirement Benefit Expense (Income) —Net periodic pension benefit expense (income) for our foreign and domestic pension plans and domestic postretirement plan included the following components: Year ended December 31, (1) Foreign Pension Plans Domestic Pension Plan Domestic Postretirement Plan 2019 2018 2017 2019 2018 2017 2019 2018 2017 Service cost (2) $ 0.8 $ 0.6 $ 0.4 $ — $ 1.0 $ 0.7 $ 0.1 $ 0.1 $ 0.1 Interest cost 0.7 0.7 0.8 0.2 0.3 0.3 0.2 0.2 0.1 Expected return on plan assets (0.2) (0.1) (0.1) — — — — — — Curtailment gains (3) — — (1.1) — (0.1) — — (0.2) — Recognized net actuarial losses (gains) (4) 4.4 (1.3) (1.6) 0.7 (0.3) 0.5 0.4 (0.4) 0.2 Total net periodic pension/postretirement benefit expense (income) $ 5.7 $ (0.1) $ (1.6) $ 0.9 $ 0.9 $ 1.5 $ 0.7 $ (0.3) $ 0.4 (1) Service cost is classified in “Selling, general and administrative” expense and all other components of net periodic pension and postretirement expense (income) are classified in “Other income (expense), net” in our accompanying consolidated statements of operations for each year presented. (2) Service cost in 2018 of the domestic pension plan includes $0.2 related to the accelerated vesting of a year of service credit related to the resignation of a former participant in the plan during the fourth quarter of 2018. (3) Curtailment gains in 2018 of the domestic pension and postretirement plans are related to the resignation during the fourth quarter of 2018 of a former participant in those plans. Curtailment gain in 2017 of the foreign pension plans is related to the cessation of accrual of future benefits by participants in a defined benefit pension plan in the Netherlands during the first quarter. The accumulated obligations for future pension payments to participants in this plan were also transferred to an insurance company at that time. Under the agreement, the insurance company irrevocably assumed the obligation to make future pension payments to the approximately 60 participants of the plan. (4) Consists of reported actuarial losses (gains) and the difference between actual and expected returns on plan assets. For 2019, the amount related to the domestic pension plan also includes a $0.2 charge related to the effects of a partial settlement and remeasurement of that plan, resulting from the lump sum payment of a former officer’s pension obligation during the year. For 2018, the amount related to foreign pension plans also includes a cumulative charge of $0.6 related to a change in the accounting for certain foreign benefit plans from defined contribution plans to defined benefit plans. These plans include approximately 50 active participants. Assumptions —Actuarial assumptions used in accounting for our foreign pension plans and domestic nonqualified pension plan, were as follows: Year ended December 31, Foreign Pension Plans Domestic Pension Plan 2019 2018 2017 2019 2018 2017 Weighted-average actuarial assumptions used in determining net periodic pension expense: Discount rate 1.52 % 1.51 % 1.54 % 4.11 % 3.49 % 3.82 % Rate of increase in compensation levels 2.71 % 2.50 % 2.68 % N/A 2.50 % 2.50 % Expected long-term rate of return on assets 3.37 % 1.00 % 1.82 % N/A N/A N/A Weighted-average actuarial assumptions used in determining year-end benefit obligations: Discount rate 0.76 % 1.52 % 1.51 % 2.92 % 4.11 % 3.49 % Rate of increase in compensation levels 2.72 % 2.71 % 2.50 % N/A N/A 2.50 % We review pension assumptions annually. Pension expense or income for the year is determined using assumptions as of the beginning of the year (except for the effects of recognizing changes in the fair value of plan assets and actuarial gains and losses in the fourth quarter of each year), while the funded status is determined using assumptions as of the end of the year. We determined assumptions and established them at the respective balance sheet date using the following principles: (i) the expected long-term rate of return on plan assets is established based on forward looking long-term expectations of asset returns over the expected period to fund participant benefits based on the target investment mix of our plans; (ii) the discount rate is determined by matching the expected projected benefit obligation cash flows for each of the plans to a yield curve that is representative of long-term, high-quality (rated AA or higher) fixed income debt instruments as of the measurement date; and (iii) the rate of increase in compensation levels is established based on our expectations of current and foreseeable future increases in compensation. In addition, we consider advice from independent actuaries. Actuarial assumptions used in accounting for our domestic postretirement plan were as follows: Year ended December 31, 2019 2018 2017 Assumed health care cost trend rates: Health care cost trend rate for next year 6.75 % 7.00 % 7.25 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 5.00 % 5.00 % 5.00 % Year that the rate reaches the ultimate trend rate 2027 2027 2027 Discount rate used in determining net periodic postretirement benefit expense 4.55 % 3.79 % 4.32 % Discount rate used in determining year-end postretirement benefit obligation 3.72 % 4.55 % 3.79 % The accumulated postretirement benefit obligation was determined using the terms and conditions of our plan, together with relevant actuarial assumptions and health care cost trend rates. It is our policy to review the postretirement assumptions annually. The assumptions are determined by us and are established based on our prior experience and our expectations that future rates will decline. In addition, we consider advice from independent actuaries. Defined Contribution Retirement Plan We sponsor a defined contribution retirement plan (the ‘‘401(k) Plan’’) pursuant to Section 401(k) of the U.S. Internal Revenue Code to which eligible U.S. employees of the Company may voluntarily contribute. Under the 401(k) Plan, such employees may contribute up to 50% of their compensation into the 401(k) Plan and the Company matches a portion of participating employees’ contributions. Prior to the amendment discussed below, the Company’s matching contributions were primarily made in newly issued shares of SPX FLOW common stock and were issued at the prevailing market price. The matching contributions vested with the employee immediately upon the date of the match and there were no restrictions on the resale of SPX FLOW common stock held by employees. As of the market close on March 29, 2018, the Company amended the 401(k) Plan to institute a freeze of new investments (whether through contributions, transfers, exchanges or rebalancing) directed into the SPX FLOW Stock Fund investment option provided under the 401(k) Plan. All Company matching contributions to the 401(k) Plan related to payroll periods ending after March 29, 2018 have been contributed in cash instead of Company common stock and, as a result of this change, Company matching contributions after such date have not impacted the number of outstanding shares or “Paid-In Capital.” Amounts contributed under the 401(k) Plan for the years ended December 31, 2019, 2018 and 2017 were $6.3, $6.6 and $5.7, respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income (loss) before income taxes and the provision for (benefit from) income taxes consisted of the following: Year ended December 31, 2019 2018 2017 Income (loss) before income taxes: United States $ 78.8 $ 97.3 $ 95.8 Foreign 6.7 (25.5) (59.2) $ 85.5 $ 71.8 $ 36.6 Provision for (benefit from) income taxes: Current: United States $ (18.1) $ 33.4 $ 23.5 Foreign 35.6 18.5 9.9 Total current 17.5 51.9 33.4 Deferred and other: United States 6.4 0.3 (30.3) Foreign 5.0 9.1 (0.5) Total deferred and other 11.4 9.4 (30.8) Total provision $ 28.9 $ 61.3 $ 2.6 The reconciliation of income tax computed at the U.S. federal statutory tax rate to our effective income tax rate was as follows: Year ended December 31, 2019 2018 2017 Tax at U.S. federal statutory rate 21.0 % 21.0 % 35.0 % State and local taxes, net of U.S. federal benefit 1.6 2.5 1.8 U.S. credits and exemptions (9.3) (5.0) (13.6) Tax rate differential on foreign earnings (1.7) 18.4 15.2 Adjustments to uncertain tax positions (0.6) 0.2 (11.7) Changes in valuation allowance 19.9 15.4 25.4 Tax on repatriation of foreign earnings (7.0) 30.6 148.8 U.S. federal rate change — 0.3 (194.9) Stock compensation (0.1) 0.2 3.6 Tax on transfer to non-U.S. affiliates 7.0 — — Other 3.0 1.8 (2.5) 33.8 % 85.4 % 7.1 % Significant components of our deferred tax assets and liabilities were as follows: As of December 31, 2019 2018 Deferred tax assets: Net operating loss and credit carryforwards $ 378.7 $ 338.3 Pension, other postretirement and postemployment benefits 8.9 9.1 Payroll and compensation 11.9 13.5 Working capital accruals 10.2 10.1 Accelerated depreciation 3.7 0.1 Other 53.1 44.3 Total deferred tax assets 466.5 415.4 Valuation allowance (152.1) (82.5) Net deferred tax assets 314.4 332.9 Deferred tax liabilities: Intangible assets recorded in acquisitions 33.4 39.4 Basis difference in affiliates 208.8 266.8 Other 6.9 4.1 Total deferred tax liabilities 249.1 310.3 $ 65.3 $ 22.6 General Matters Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. We periodically assess deferred tax assets to determine if they will likely be realized and the adequacy of deferred tax liabilities, incorporating the results of local, state, federal and foreign tax audits in our estimates and judgments. At December 31, 2019, we had the following tax loss carryforwards available: tax loss carryforwards of various foreign jurisdictions of approximately $1,541.3, federal interest carryforwards of $11.6 and state tax carryforwards of approximately $89.6. Of these amounts, a negligible amount expires in 2020 and $357.0 expires at various times between 2021 and 2039. The remaining carryforwards have no expiration date. Realization of deferred tax assets, including those associated with net operating loss and credit carryforwards, is dependent upon generating sufficient taxable income in the appropriate tax jurisdiction. We believe that it is more likely than not that we may not realize the benefit of certain of these deferred tax assets and, accordingly, have established a valuation allowance against certain of these deferred tax assets. Although realization is not assured for the remaining deferred tax assets, we believe it is more likely than not that the deferred tax assets will be realized through future taxable earnings or tax planning strategies. However, deferred tax assets could be reduced in the near term if our estimates of taxable income are significantly reduced or tax planning strategies are no longer viable. The valuation allowance increased by $69.6 in 2019 and $6.0 in 2018. Of the net changes in 2019 and 2018, $17.0 and $11.1 were recognized as an increase in tax expense. The increase in the valuation allowance during 2019 was primarily due to current year losses carried forward and an outside bais difference recorded through tax expense of discontinued operations partially offset by previously carried forward losses which were written off during the year as a result of entity rationalization. The increase in the valuation allowance during 2018 was primarily due to net current year losses carried forward partially offset by the impact of a stronger U.S. dollar on foreign currency-denominated balances. The amount of income tax that we pay annually is dependent on various factors, including the timing of certain deductions. These deductions can vary from year to year and, consequently, the amount of income taxes paid in future years will vary from the amounts paid in prior years. Undistributed Foreign Earnings Generally, it has been our practice and intention to reinvest the earnings of most of our non-U.S. subsidiaries in those operations with a few limited exceptions. The Tax Cuts and Jobs Act made significant changes to the taxation of undistributed foreign earnings, requiring that all previously untaxed earnings and profits of our controlled foreign corporations be subjected to a one-time mandatory repatriation tax. The transition tax substantially eliminated the basis difference that existed previously for purposes of ASC Topic 740. However, there are limited other taxes that could continue to apply such as foreign withholding and certain state taxes. For 2019, the Company decided not to reinvest the current year earnings of its primary operations in China, Chile and South Korea to the extent those earnings are available for distribution. Otherwise, the Company intends to continue to indefinitely reinvest the earnings of our non-U.S. subsidiaries, with certain minor exceptions. As of December 31, 2019, we have recorded a provision of $4.1 for foreign withholding and state taxes on the earnings we expect to repatriate. Unrecognized Tax Benefits As of December 31, 2019, we had gross unrecognized tax benefits of $18.7 (net unrecognized tax benefits of $17.4), of which $12.4, if recognized, would impact our effective tax rate from continuing operations. Similarly, as of December 31, 2018, we had gross unrecognized tax benefits of $5.3 (net unrecognized tax benefits of $2.9). We classify interest and penalties related to unrecognized tax benefits as a component of our income tax provision. As of December 31, 2019, gross accrued interest totaled $0.5 (net accrued interest of $0.4), while the related amount as of December 31, 2018 was $0.3 (net accrued interest of $0.2). Our income tax provision for the years ended December 31, 2019, 2018 and 2017 included gross interest expense (income) of $0.2, $0.1 and $(1.5), respectively. There were no significant penalties recorded during any year presented. Based on the outcome of certain examinations or as a result of the expiration of statutes of limitations for certain jurisdictions, we believe that within the next 12 months it is reasonably possible that our previously unrecognized tax benefits could decrease by $1.0 to $2.0. The previously unrecognized tax benefits relate to transfer pricing matters. The aggregate changes in the balance of unrecognized tax benefits for the years ended December 31, 2019, 2018 and 2017 were as follows: Year ended December 31, 2019 2018 2017 Unrecognized tax benefit - beginning of year $ 5.3 $ 5.6 $ 13.9 Gross increases - tax positions in prior period 15.9 1.2 — Gross decreases - tax positions in prior period (0.8) (0.4) (2.3) Gross increases - tax positions in current period — 0.2 0.4 Settlements — — — Lapse of statute of limitations (1.7) (1.3) (6.4) Change due to foreign currency exchange rates — — — Unrecognized tax benefit - end of year $ 18.7 $ 5.3 $ 5.6 Other Tax Matters During 2019, we recorded an income tax provision of $28.9 on $85.5 of income before income taxes, resulting in an effective tax rate of 33.8%. The effective tax rate for 2019 was impacted by income tax charges of (i) $6.9 resulting from the addition of a valuation allowance for certain subsidiaries for which the benefit of previously incurred losses or credits is not expected to be realized, (ii) $3.1 resulting from losses occurring in certain jurisdictions where the tax benefit of those losses is not expected to be realized and (iii) $6.0 resulting from the outbound transfer of an affiliate to non-U.S. entities, partially offset by income tax benefits of (1) $1.8 resulting from an outside basis difference from continuing operations that will be realized through the disposition of held-for-sale assets and (2) $3.9 resulting from the net impact of the cancellation of certain intercompany indebtedness. During 2018, our effective tax rate of 85.4% was impacted by income tax charges of (i) $22.2 for adjustments to the deemed repatriation tax and related elections and (ii) $9.0 resulting from losses occurring in certain jurisdictions where the tax benefit of those losses is not expected to be realized. During 2017, our effective tax rate of 7.1% was impacted by an income tax benefit of $71.2 related to revaluation of our net deferred tax liabilities resulting from the change in the U.S. federal tax rate, including the reduction for earnings that were not indefinitely reinvested, and income tax charges of (i) $50.4 for the deemed repatriation tax and (ii) $10.4 resulting from losses occurring in certain jurisdictions where the tax benefit of those losses is not expected to be realized. 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 2020. 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. |
INDEBTEDNESS
INDEBTEDNESS | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
INDEBTEDNESS | INDEBTEDNESS Debt at December 31, 2019 and 2018 was comprised of the following: December 31, 2019 2018 Term loan, due in June 2022 $ 100.0 $ — Former term loan (1) — 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) 21.3 33.1 Less: deferred financing fees (3) (6.8) (8.0) Total debt 714.5 765.1 Less: short-term debt 20.7 26.0 Less: current maturities of long-term debt 0.1 20.8 Total long-term debt $ 693.7 $ 718.3 (1) This formerly outstanding term loan was fully repaid during the second quarter of 2019. See further discussion under “Senior Credit Facilities.” (2) Primarily includes finance lease obligations (previously “capital lease obligations” in 2018 under prior accounting guidance) of $0.6 and $7.2 and balances under a purchase card program of $20.4 and $23.0 as of December 31, 2019 and 2018, respectively. The purchase card program allows for payment beyond the normal 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 Notes 3 and 7 for further discussion regarding our adoption of a new lease accounting standard during the first quarter of 2019 and the impact of such adoption on our capital lease obligations. (3) Deferred financing fees were comprised of fees related to the term loans and senior notes. As described further below under “Senior Credit Facilities,” we amended and restated our senior credit facilities in June 2019. In connection with this amendment, we recognized $1.0 of expense, classified as a component of “Interest expense, net” in our accompanying consolidated statement of operations during the year ended December 31, 2019, related to the write-off of deferred financing fees resulting from the extinguishment of the term loan and other facilities of our former senior credit facility. Debt payable during each of the five years subsequent to December 31, 2019 is $20.8, $0.2, $100.1, $0.1 and $300.1, respectively. Senior Credit Facilities On June 27, 2019, we amended and restated our senior credit facilities with a syndicate of lenders that provide for committed senior secured financing in the aggregate initial principal amount of $750.0, consisting of the following: • A term loan facility in an aggregate initial principal amount of $100.0, with a final maturity of June 27, 2022; • A domestic revolving credit facility, available for loans and letters of credit, in an aggregate principal amount up to $200.0, with a final maturity of June 27, 2024; • A global revolving credit facility, available for loans in Euros, British Pound and other currencies, in an aggregate principal amount up to the equivalent of $300.0, with a final maturity of June 27, 2024; and • A bilateral foreign credit instrument facility, available for performance letters of credit and guarantees in Euros, British Pound and other currencies, in an aggregate principal amount up to the equivalent of $150.0, with a final maturity of June 27, 2024. We also may seek additional commitments, without consent from the existing lenders, to add an incremental term loan facility and/or increase the commitments in respect of the domestic revolving credit facility, the global revolving credit facility, and/or the bilateral foreign credit instrument facility by an aggregate principal amount not to exceed (a) the greater of (i) $275.0 and (ii) an amount equal to 100% of consolidated adjusted EBITDA for the four fiscal quarters ended most recently before such date plus (b) an unlimited amount so long as, immediately after giving effect thereto, our Consolidated Senior Secured Leverage Ratio (as defined in the amended and restated credit agreement generally as the ratio of consolidated total debt (excluding the face amount of undrawn letters of credit, bank undertakings, or analogous instruments and net of cash and cash equivalents) at the date of determination secured by liens to consolidated adjusted EBITDA for the four fiscal quarters ended most recently before such date) does not exceed 2.75:1.00 plus (c) an amount equal to all voluntary prepayments of the term loan facility and voluntary prepayments accompanied by permanent commitment reductions of the domestic revolving credit facility, the global revolving credit facility, and the bilateral foreign credit instrument facility. We are the borrower under all of the senior credit facilities, and we may designate certain of our foreign subsidiaries to be co-borrowers under the global revolving credit facility and the bilateral foreign credit instrument facility (“FCI”). All borrowings and other extensions of credit under our senior credit facilities are subject to the satisfaction of customary conditions, including absence of defaults and accuracy in material respects of representations and warranties. The interest rates applicable to loans under our senior credit facilities are, at our option, equal to either (x) an alternate base rate (the highest of (a) the federal funds effective rate plus 0.5%, (b) the prime rate of Bank of America, N.A., and (c) the one-month LIBOR rate plus 1.0%) or (y) a reserve-adjusted LIBOR rate for dollars (Eurodollar) plus, in each case, an applicable margin percentage, which varies based on our Consolidated Leverage Ratio (as defined in the amended and restated credit agreement generally as the ratio of consolidated total debt (excluding the face amount of undrawn letters of credit, bank undertakings or analogous instruments and net of cash and cash equivalents) at the date of determination to consolidated adjusted EBITDA, as defined in the amended and restated credit agreement, for the four fiscal quarters ended most recently before such date). We may elect interest periods of one, two, three or six months (and, if consented to by all relevant lenders, twelve months or less) for Eurodollar rate borrowings. The per annum fees charged and the interest rate margins applicable to Eurodollar rate and alternate base rate loans are as follows: Consolidated Leverage Ratio Domestic Revolving Commitment Fee Global Revolving Commitment Fee Financial Letter of Credit Fee FCI Commitment Fee FCI Fee and Non-Financial Letter of Credit Fee Eurodollar Rate Loans ABR Loans Greater than or equal to 3.50 to 1.0 0.300% 0.300% 2.000% 0.300% 1.200% 2.000% 1.000% Between 3.50 to 1.0 and 2.50 to 1.0 0.275% 0.275% 1.750% 0.275% 1.050% 1.750% 0.750% Between 2.50 to 1.0 and 1.50 to 1.0 0.250% 0.250% 1.500% 0.250% 0.900% 1.500% 0.500% Less than 1.50 to 1.0 0.225% 0.225% 1.250% 0.225% 0.750% 1.250% 0.250% The fees for bilateral foreign credit commitments are as specified above for foreign credit instrument commitments unless otherwise agreed with the bilateral foreign issuing lender. We also pay fronting fees on the outstanding amounts of letters of credit at rates of 0.125% per annum. Our senior credit facilities require mandatory prepayments in amounts equal to the net proceeds from the sale or other disposition of, including from any casualty to, or governmental taking of, property in excess of specified values (other than in the ordinary course of business and subject to other exceptions) by the Company or its subsidiaries. Mandatory prepayments are applied to repay, first, amounts outstanding under any term loans and, then, amounts (or cash collateralize letters of credit) outstanding under the global revolving credit facility and the domestic revolving credit facility (without reducing the commitments thereunder). No prepayment is required generally to the extent the net proceeds are reinvested (or committed to be reinvested) in permitted acquisitions, permitted investments or assets to be used in our business within 360 days (and if committed to be reinvested, actually reinvested within 180 days after the end of such 360-day period) of the receipt of such proceeds. In the case of our planned divestiture of a substantial portion of the Company’s former Power and Energy reportable segment, the divestiture is allowed under the credit agreement; however, if, after giving effect on a Pro Forma basis (as defined in the amended and restated credit agreement), our Consolidated Leverage Ratio (as defined in the amended and restated credit agreement) is greater than 3.75 to 1.0, then 100% of the net proceeds received in connection with the disposition shall be used first, for the prepayment of then-outstanding long-term indebtedness, and second, for the prepayment of any then-outstanding domestic revolving loans and global revolving loans. We may voluntarily prepay loans under our senior credit facilities, in whole or in part, without premium or penalty. Any voluntary prepayment of loans is subject to reimbursement of the lenders’ breakage costs in the case of a prepayment of Eurodollar rate borrowings other than on the last day of the relevant interest period. Indebtedness under our senior credit facilities is guaranteed by: • Each existing and subsequently acquired or organized domestic material subsidiary with specified exceptions; and • The Company with respect to the obligations of our foreign borrower subsidiaries under the global revolving credit facility and the bilateral foreign credit instrument facility. Indebtedness under our senior credit facilities is secured by (i) a first-priority pledge and security interest in 100% of the capital stock of our domestic subsidiaries (with certain exceptions) held by the Company or its domestic subsidiary guarantors and 65% of the capital stock of our material first-tier foreign subsidiaries (with certain exceptions) and (ii) first-priority security interests, mortgages, and other liens on substantially all of the assets of the Company and its domestic subsidiary guarantors. If the Company’s corporate credit rating is “Baa3” or better by Moody’s or “BBB-” or better by S&P and no defaults exist or would result therefrom, then all collateral security will be released and the indebtedness under our senior credit facilities will be unsecured. Our senior credit facilities require that we maintain: • A Consolidated Interest Coverage Ratio (as defined in the amended and restated credit agreement generally as the ratio of consolidated adjusted EBITDA for the four fiscal quarters ended on such date to consolidated cash interest expense for such period) as of the last day of any fiscal quarter of at least 3.00 to 1.00; and • A Consolidated Leverage Ratio (as defined in the amended and restated credit agreement) as of the last day of any fiscal quarter of not more than 4.00 to 1.00. Our senior credit facilities also contain covenants that, among other things, restrict our ability to incur additional indebtedness, grant liens, make investments, loans, guarantees, or advances, make restricted junior payments, including dividends, redemptions of capital stock, and voluntary prepayments or repurchase of certain other indebtedness, engage in mergers, acquisitions or sales of assets, or engage in certain transactions with affiliates, and otherwise restrict certain corporate activities. Our senior credit facilities contain customary representations, warranties, affirmative covenants and events of default. We are permitted under our senior credit facilities to repurchase our capital stock and pay cash dividends in an unlimited amount if our Consolidated Leverage Ratio, as defined in the amended and restated credit agreement, is (after giving pro forma effect to such payments) less than 2.50 to 1.00. If our Consolidated Leverage Ratio is (after giving pro forma effect to such payments) greater than or equal to 2.50 to 1.00, the aggregate amount of such repurchases and dividend declarations cannot exceed (a) $100.0 in any fiscal year plus (b) an additional amount for all such repurchases and dividend declarations made after June 27, 2019 equal to the Available Amount (as defined in the amended and restated credit agreement as the sum of (i) $300.0 plus (ii) a positive amount equal to 50% of cumulative Consolidated Net Income (as defined in the amended and restated credit agreement generally as consolidated net income subject to certain adjustments solely for the purposes of determining this basket) during the period from June 27, 2019, to the end of the most recent fiscal quarter preceding the date of such repurchase or dividend declaration for which financial statements have been (or were required to be) delivered (or, in case such Consolidated Net Income is a deficit, minus 100% of such deficit) plus (iii) certain other amounts specified in the amended and restated credit agreement. The proceeds of the initial borrowing under the senior credit facilities were used in substantial part to refinance indebtedness outstanding under our former senior credit facilities. At December 31, 2019, we had $494.9 of borrowing capacity under our revolving credit facilities after giving effect to $5.1 reserved for outstanding letters of credit. In addition, at December 31, 2019, we had $69.6 of available issuance capacity under our foreign credit instrument facilities after giving effect to $80.4 reserved for outstanding bank guarantees. In addition, we had $9.6 of bank guarantees outstanding under the senior credit facilities that, once satisfied, cannot be reissued. The weighted-average interest rate of outstanding borrowings under our senior credit facilities was approximately 3.1% and 4.3% at December 31, 2019 and 2018, respectively. Senior Notes In August 2016, the Company completed its issuance of $600.0 in aggregate principal amount of senior unsecured notes comprised of one tranche of $300.0 aggregate principal amount of 5.625% senior notes due in August 2024 (the “2024 Notes”) and one tranche of $300.0 aggregate principal amount of 5.875% senior notes due in August 2026 (the “2026 Notes” and, together with the 2024 Notes, the “Notes”). The proceeds of the Notes, together with borrowings under our domestic revolving loan facility, were used to complete the tender offer and repurchase/redemption of the $600.0 outstanding principal amount of our 6.875% senior notes due in August 2017, including $36.4 of premiums paid. The Notes were issued pursuant to indentures, each dated August 10, 2016, among the Company, the subsidiary guarantors named therein, and the trustee of the Notes (the “Indentures”). The interest payment dates for the Notes are February 15 and August 15 of each year, with interest payable in arrears. The Notes were offered in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended, and to certain non-U.S. persons in transactions outside of the United States in reliance on Regulation S under the Securities Act. The Notes are redeemable, in whole or in part, at any time prior to maturity at a price equal to 100% of the principal amount thereof plus an applicable premium, plus accrued and unpaid interest. If we experience certain types of change of control transactions, we must offer to repurchase the Notes at 101% of the aggregate principal amount of the Notes repurchased, plus accrued and unpaid interest. The Notes are unsecured and rank equally with all our existing and future unsubordinated unsecured senior indebtedness, and are effectively junior to our senior credit facilities. The Notes are guaranteed by all of our existing and future domestic subsidiaries that guarantee our senior credit facilities, subject to certain exceptions. The likelihood of our domestic subsidiaries having to make payments under the guarantee is considered remote. Each of the Indentures contains covenants that limit the Company’s (and its subsidiaries’) ability to, among other things: (i) grant liens on its assets; (ii) enter into sale and leaseback transactions; and (iii) consummate mergers or transfer certain of its assets. Other In September 2018, we entered into a trade receivables financing arrangement under which we could borrow, on a continuous basis, up to $50.0, depending on our trade receivables balance and other factors. The arrangement had a final maturity of September 20, 2019; however, in May 2019, we terminated this arrangement. There were no outstanding borrowings under this former facility at the date of termination, and the write-off of deferred financing fees related to this former facility was less than $0.1. At December 31, 2019, in addition to the revolving lines of credit described above, we had approximately $9.5 of letters of credit outstanding under separate arrangements in China and India. At December 31, 2019, we were in compliance with all covenants of our senior credit facilities and senior notes. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 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. From time to time, we enter into forward contracts to manage the exposure on contracts with forecasted transactions denominated in non-functional currencies and to manage the risk of transaction gains and losses associated with assets/liabilities denominated in currencies other than the functional currency of certain subsidiaries (“FX forward contracts”). In addition, some of our contracts contain currency forward embedded derivatives (“FX embedded derivatives”), because the currency of exchange is not “clearly and closely” related to the functional currency of either party to the transaction. Certain of our FX forward contracts are designated as cash flow hedges. To the extent these derivatives are effective in offsetting the variability of the hedged cash flows, changes in the derivatives' fair value are not included in current earnings, but are included in AOCL. These changes in fair value are reclassified into earnings as a component of revenues or cost of products sold, as applicable, when the forecasted transaction impacts earnings. In addition, if the forecasted transaction is no longer probable, the cumulative change in the derivatives' fair value is recorded as a component of “Other income (expense), net” in the period in which the transaction is no longer considered probable of occurring. To the extent a previously designated hedging transaction is no longer an effective hedge, any ineffectiveness measured in the hedging relationship is recorded in earnings in the period in which it occurs. We had FX forward contracts with an aggregate notional amount of $83.3 and $65.3 outstanding as of December 31, 2019 and 2018, respectively, with all such contracts scheduled to mature within one year. We also had FX embedded derivatives with an aggregate notional amount of $0.9 and $3.1 at December 31, 2019 and 2018, respectively, with all such contracts scheduled to mature within one year. There were unrealized losses of $0.2 and $0.3, net of taxes, recorded in AOCL related to FX forward contracts as of December 31, 2019 and 2018, respectively. The net losses recorded in “Other income (expense), net” related to FX losses totaled $3.1, $7.4 and $2.3 for the years ended December 31, 2019, 2018 and 2017, 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 consolidated balance sheets. The gross fair values of our FX forward contracts and FX embedded derivatives, in aggregate, were $0.3 and $0.7 (gross assets) and $0.0 and $0.2 (gross liabilities) at December 31, 2019 and 2018, respectively. Concentrations of Credit Risk Financial instruments that potentially subject us to significant concentrations of credit risk consist of cash and equivalents, trade accounts receivable, contract assets and FX forward contracts. These financial instruments, other than trade accounts receivable and contract assets, are placed with high-quality financial institutions throughout the world. We periodically evaluate the credit standing of these financial institutions. We maintain cash levels in bank accounts that, at times, may exceed federally-insured limits. We have not experienced, and believe we are not exposed to significant risk of, loss in these accounts. We have credit loss exposure in the event of nonperformance by counterparties to the above financial instruments, but have no other off-balance-sheet credit risk of accounting loss. Except as is provided for in our accompanying consolidated balance sheets through an allowance for uncollectible accounts for certain accounts receivable, we anticipate that counterparties will be able to fully satisfy their obligations under the contracts. We do not obtain collateral or other security to support financial instruments subject to credit risk, but we do monitor the credit standing of counterparties. Concentrations of credit risk arising from trade accounts receivable and contract assets are due to selling to customers in a particular industry. Credit risks are mitigated by performing ongoing credit evaluations of our customers' financial conditions and obtaining collateral, advance payments, or other security when appropriate. No one customer, or group of customers that, to our knowledge, are under common control, accounted for more than 10% of our revenues for any period presented. |
EQUITY AND STOCK-BASED COMPENSA
EQUITY AND STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
EQUITY AND STOCK-BASED COMPENSATION | EQUITY AND STOCK-BASED COMPENSATION 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 (loss) per share: Year ended December 31, 2019 2018 2017 Weighted-average shares outstanding, basic 42.465 42.197 41.799 Dilutive effect of share-based awards 0.221 0.436 0.384 Weighted-average shares outstanding, dilutive (1) 42.686 42.633 42.183 (1) For the years ended December 31, 2019 and 2018, 0.119 and 0.041, respectively, of unvested restricted stock shares/units were not included in the computation of diluted income per share because required market thresholds for vesting (as discussed below) were not met. For the years ended December 31, 2019, 2018 and 2017, 0.138, 0.223 and 0.202, respectively, of unvested restricted stock shares/units were not included in the computation of diluted income per share because required internal performance thresholds for vesting (as discussed below) were not met. For the years ended December 31, 2019, 2018 and 2017, 0.342, 0.342 and 0.358, respectively, of stock options were not included in the computation of diluted income per share because their exercise price was greater than the average market price of common shares. Stock-Based Compensation - Awards Granted Prior to the Spin-Off Prior to the Spin-Off, eligible employees of the Company participated in our former Parent’s share-based compensation plan pursuant to which they were granted share-based awards of its stock. Our former Parent’s share-based compensation plan included awards for restricted stock shares, restricted stock units and stock options. Our former Parent's restricted stock shares, restricted stock units, and stock options were granted to eligible employees in accordance with applicable equity compensation plan documents and agreements. Subject to participants' continued employment and other plan terms and conditions, the restrictions lapsed and awards generally vested over a period of time, generally one three Each eligible non-officer employee received awards in 2015 that generally vested ratably over three years, subject only to the passage of time and a participant's continued employment during the vesting period. Officers of our former Parent received awards in 2015 that generally vested ratably over three years, subject to an internal performance metric and a participant's continued employment during the vesting period. Our former Parent's restricted stock shares and restricted stock units that did not vest within the applicable vesting period were forfeited. In connection with the Spin-Off, outstanding equity-based awards granted to SPX FLOW employees under our former Parent’s plan were converted into awards of the Company using a formula designed to preserve the intrinsic value of the awards immediately prior to the Spin-Off. The conversion did not result in additional compensation expense. Stock-Based Compensation - Awards Granted Subsequent to the Spin-Off SPX FLOW stock-based compensation awards may be granted to certain eligible employees or non-employee directors under the SPX FLOW Stock Compensation Plan (the “Stock Plan”). Under the Stock Plan, up to 2.713 unissued shares of our common stock were available for future grant as of December 31, 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 one Eligible employees, including officers, were granted target performance awards during 2019, 2018, 2017 and 2016 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 three Eligible employees, including officers, also were granted awards during 2019 and 2018 that vest ratably over three In accordance with terms of the Sale Agreement entered into with the Buyer, all awards granted to SPX FLOW employees who become future employees of the Buyer upon closing of the Transaction and that vest subject to the passage of time and the employees’ continued employment that would have otherwise vested within the twelve-month period following the closing date of the Transaction, will vest as of such closing date. Target performance awards granted in 2017 that vest subject to (i) SPX FLOW shareholder return versus the Composite Group or (ii) attainment of stated improvements in the three-year average annual return on invested capital, vest according to the terms of the underlying award agreements (including continued employment during the measurement period). All other outstanding share-based awards to future employees of the Buyer that do not vest under these conditions are subject to forfeiture as of the closing date of the Transaction. Eligible non-officer employees also were granted restricted stock unit awards during 2017 and 2016 that vest ratably over three three three Non-employee directors received restricted stock share awards during 2019, 2018, 2017 and 2016 that vest or vested at the close of business on the day before the date of the Company's next regular annual meeting of shareholders held after the date of the grant, subject to the passage of time and the directors' continued service during such periods. Restricted stock share and unit awards granted to eligible employees during 2019, 2018 and 2017 include early retirement provisions which permit recipients to be eligible for vesting generally upon reaching the age of 60 and completing ten Restricted stock shares and restricted stock units that do not vest within the applicable vesting periods 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. Stock-Based Compensation Expense - All Awards 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 years ended December 31, 2019, 2018 and 2017, we recognized compensation expense related to share-based programs in “Selling, general and administrative” expense in the accompanying consolidated statements of operations as follows: Year ended December 31, 2019 2018 2017 Stock-based compensation expense - continuing and discontinued operations $ 13.7 $ 15.7 $ 15.9 Less: stock-based compensation expense recognized in discontinued operations 1.2 1.6 1.3 Stock-based compensation expense recognized in continuing operations 12.5 14.1 14.6 Income tax benefit (2.9) (3.4) (5.2) Stock-based compensation expense, net of income tax benefit $ 9.6 $ 10.7 $ 9.4 Restricted Stock Share and Restricted Stock Unit Awards The Monte Carlo simulation model valuation technique was used to determine the fair value of restricted stock shares and restricted stock units that contain a “market condition.” The Monte Carlo simulation model utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the award and calculates the fair value of each restricted stock share and restricted stock unit award. The following assumptions were used in determining the fair value of the awards granted on the dates 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 % March 6, 2018: SPX FLOW 42.0 % — % 2.36 % 0.1216 0.4193 0.6928 Composite Group 27.9 % n/a 2.36 % January 13, 2017: SPX FLOW 39.4 % — % 1.50 % 0.1848 0.3830 0.5057 Composite Group 28.6 % n/a 1.50 % In 2019, annual expected stock price volatility was based on the weighted average of SPX FLOW’s historical volatility as of the grant date. In 2018 and 2017, as SPX FLOW shares had been traded only since the Spin-Off in September 2015 (i.e., with less historical performance than the generally three The following table summarizes the unvested restricted stock share and restricted stock unit activity from December 31, 2016 through December 31, 2019: Unvested Restricted Stock Shares and Restricted Stock Units Weighted-Average Grant-Date Fair Value Per Share Outstanding at December 31, 2016 1.275 $37.89 Granted 0.486 35.18 Vested (0.358) 42.05 Forfeited and other (0.271) 49.35 Outstanding at December 31, 2017 1.132 32.65 Granted 0.404 48.63 Vested (0.312) 39.01 Forfeited and other (0.048) 33.88 Outstanding at December 31, 2018 1.176 36.40 Granted 0.546 34.51 Vested (0.462) 32.95 Forfeited and other (0.261) 31.51 Outstanding at December 31, 2019 0.999 38.24 As of December 31, 2019, there was $16.9 of unrecognized compensation cost related to restricted stock share and restricted stock unit compensation arrangements, of which $16.1 related to awards of employees associated with continuing operations. We expect this cost to be recognized over a weighted-average period of 1.7 years, including 1.8 years for awards of employees associated with continuing operations. Stock Options On January 2, 2015, eligible employees of the Company were granted 0.034 options in the stock of the former Parent, all of which were outstanding (but not exercisable) from that date up to the Spin-Off. The weighted-average exercise price per share of these options was $85.87 and the maximum term of these options is 10 years. The weighted-average grant-date fair value per share of the former Parent stock options granted on January 2, 2015 was $27.06. The fair value of each former Parent option grant was estimated using the Black-Scholes option-pricing model with the following assumptions: Annual expected SPX Corporation stock price volatility 36.53 % Annual expected SPX Corporation dividend yield 1.75 % Risk-free interest rate 1.97 % Expected life of SPX Corporation stock option (in years) 6.0 Annual expected stock price volatility was based on the six seven three In connection with the Spin-Off, certain corporate employees of the former Parent became employees of the Company, and the former Parent stock options that had been granted to such corporate employees of the former Parent on January 2, 2015 were converted to SPX FLOW stock options. The number of outstanding SPX FLOW stock options was 0.342 as of December 31, 2019 and 2018 after reflecting 0.029 of forfeitures and expirations during 2017. All of the SPX FLOW stock options outstanding as of December 31, 2019 were exercisable. As a result of the conversion of the stock options in connection with the Spin-Off, the weighted-average exercise price per share of the SPX FLOW stock options is $61.29 and the weighted-average grant-date fair value per share of the SPX FLOW stock options 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). Other terms of the SPX FLOW stock options are the same as those discussed above. As of December 31, 2019, there was no unrecognized compensation cost related to stock options. Accumulated Other Comprehensive Loss Substantially all of AOCL as of December 31, 2019 and 2018 was foreign currency translation adjustment (there were unrealized losses of $0.2 and $0.3, net of taxes, recorded in AOCL related to FX forward contracts as of December 31, 2019 and 2018, respectively, as discussed in Note 14 ). See the consolidated statements of comprehensive income (loss) for changes in AOCL for the years ended December 31, 2019, 2018 and 2017. Common Stock in Treasury During the years ended December 31, 2019 and 2018, “Common stock in treasury” was increased by $5.4 and $5.0, respectively, for common stock that was surrendered by recipients of restricted stock as a means of funding the related minimum income tax withholding requirements. |
LITIGATION, CONTINGENT LIABILIT
LITIGATION, CONTINGENT LIABILITIES AND OTHER MATTERS | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
LITIGATION, CONTINGENT LIABILITIES AND OTHER MATTERS | LITIGATION, CONTINGENT LIABILITIES AND OTHER MATTERS Litigation and Contingent Liabilities 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 related to a project in the Power and Energy business which is classified as discontinued operations. The demand and related claims arose from the Company’s supply of equipment used in a series of long-term nuclear power projects that was substantially completed several years ago in terms of our production and revenue recognition. On September 30, 2019, the Company entered into a settlement agreement with the customer and paid $17.0 in accordance with the terms of the agreement. Accordingly, during the third quarter of 2019, we recorded a charge of $17.0 to “Cost of products sold” within the results of discontinued operations, related to the settlement. The agreement releases the Company from further claims by the customer, beyond the ordinary warranty obligations that are associated with the underlying project. 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 consolidated balance sheets as of December 31, 2019 and 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 17 . Of the $20.3 of current exercise value of the put options outstanding as of December 31, 2019, options with a value of $11.2 became exercisable during 2018. If and when such options are exercised, we expect to settle the option value in cash. |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Dec. 31, 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 December 31, 2019 and 2018, the gross fair values of our derivative financial assets and liabilities, in aggregate, were $0.3 and $0.7 (gross assets) and $0.0 and $0.2 (gross liabilities), respectively. As of December 31, 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 our 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 upon adoption of the new accounting guidance 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 consolidated balance sheets as of December 31, 2019 and 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 consolidated statement of operations during the year ended December 31, 2019. We are restricted from transferring this investment without approval of the manager of the investee. The table below presents the changes in our investment in the equity security, measured at net asset value using a practical expedient to fair value guidance, for the years ended December 31, 2019 and 2018, respectively, including the increase in net asset value recorded to “Other income (expense), net.” As noted above, this investment was recognized at its historical cost (of $0.6) until the fourth quarter of 2018. Year ended December 31, 2019 2018 Balance at beginning of year $ 16.6 $ 0.6 Impact of conversion from historical cost to fair value — 16.0 Increase in net asset value recorded to earnings 7.8 — Proceeds received from partial distribution of investee (2.6) — Balance at end of year $ 21.8 $ 16.6 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 16 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. During the year ended December 31, 2019, the Company recorded a pre-tax loss totaling $201.0 to reduce the carrying value of the net assets of its Disposal Group, including relevant foreign currency translation adjustment balances, to the estimated proceeds expected to be received upon its disposition based on terms of the Sale Agreement with the Buyer, including consideration of net working capital and cash and debt of the Disposal Group as of December 31, 2019, and in respect of certain deductions, each as defined in the Sale Agreement (see Note 4 for further details regarding the Sale Agreement). As the loss on Disposal Group was determined not to be attributable to any individual components of the Company’s net assets of discontinuing operations, the aggregate loss has been reflected as a valuation allowance against the total assets of the Disposal Group as of December 31, 2019. The fair value of the Company’s Disposal Group reflects terms of the Sale Agreement with the Buyer as noted above and, as such, has been valued using unobservable inputs (Level 3). At December 31, 2019, no other significant non-financial assets or liabilities of the Company were required to be measured at fair value on a recurring or non-recurring basis. See Note 4 for further information regarding the loss on Disposal Group and the associated valuation allowance. During 2018, we recorded impairment charges of $9.7 related to technology assets and trademarks and of $4.5 related to tangible long-lived assets of a business within our Food and Beverage reportable segment, as we determined that the fair values of such assets were less than the respective carrying values. At December 31, 2018, no other significant non-financial assets or liabilities were required to be measured at fair value on a recurring or non-recurring basis. Refer to Note 10 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/capital leases and deferred financing fees) not measured at fair value on a recurring basis as of December 31, 2019 and 2018 were as follows: December 31, 2019 December 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Term loan, due in June 2022 (1) $ 100.0 $ 100.0 $ — $ — Former term loan (1) — — 140.0 140.0 5.625% senior notes (1) 300.0 312.0 300.0 283.5 5.875% senior notes (1) 300.0 316.5 300.0 279.4 Other indebtedness 20.7 20.7 25.9 25.9 (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 loans approximated carrying value due primarily to the variable-rate nature and credit spreads of these 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 consolidated balance sheets approximate fair value due to the short-term nature of those instruments. |
QUARTERLY RESULTS (UNAUDITED)
QUARTERLY RESULTS (UNAUDITED) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY RESULTS (UNAUDITED) | QUARTERLY RESULTS (UNAUDITED) First (1)(2) Second (2) Third (2) Fourth (1)(2) 2019 2018 2019 2018 2019 2018 2019 2018 Revenues $ 373.4 $ 368.9 $ 385.4 $ 406.5 $ 383.5 $ 406.7 $ 364.3 $ 411.8 Gross profit 123.4 118.4 130.6 135.8 134.6 131.8 131.8 127.2 Income from continuing operations, net of tax (3) 15.0 8.8 11.3 13.5 17.1 24.8 13.2 (36.6) Income (loss) from discontinued operations, net of tax (4) 5.1 6.5 50.9 9.9 (47.7) 7.7 (158.0) 10.1 Net income (loss) (3)(4) 20.1 15.3 62.2 23.4 (30.6) 32.5 (144.8) (26.5) Less: Net income (loss) attributable to noncontrolling interests 0.6 (0.2) (0.4) 0.5 1.0 (0.2) 0.8 0.6 Net income (loss) attributable to SPX FLOW, Inc. $ 19.5 $ 15.5 $ 62.6 $ 22.9 $ (31.6) $ 32.7 $ (145.6) $ (27.1) Basic income (loss) per share of common stock from continuing operations $ 0.35 $ 0.21 $ 0.26 $ 0.31 $ 0.38 $ 0.58 $ 0.30 $ (0.87) Basic income (loss) per share of common stock from discontinued operations 0.11 0.16 1.21 0.23 (1.13) 0.19 (3.72) 0.23 Basic income (loss) per share of common stock 0.46 0.37 1.48 0.54 (0.74) 0.77 (3.42) (0.64) Diluted income (loss) per share of common stock from continuing operations 0.35 0.20 0.26 0.31 0.38 0.58 0.30 (0.87) Diluted income (loss) per share of common stock from discontinued operations 0.11 0.16 1.21 0.23 (1.12) 0.19 (3.69) 0.23 Diluted income (loss) per share of common stock 0.46 0.36 1.47 0.54 (0.74) 0.77 (3.40) (0.64) (1) 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 were March 30, June 29, and September 28, compared to the respective March 31, June 30, and September 29, 2018 dates. This practice only affects the quarterly reporting periods and not the annual reporting period. We had one less day in the first quarter of 2019 and one more day in the fourth quarter of 2019 than in the respective 2018 periods. (2) During the fourth quarter of 2019 and based on a refinement of the definition of the business operations and legal entities to be included in the Disposal Group that resulted from execution of the Sale Agreement, we have reclassified certain net foreign currency losses of a legal entity based in Angola, previously included in the results of discontinued operations in prior quarterly periods, to continuing operations, as that legal entity is not subject to sale to the Buyer. (3) During the fourth quarter of 2019, the income tax provision was impacted by an income tax charge of $6.0 resulting from the outbound transfer of an affiliate to non-U.S. entities offset by income tax benefits of (i) $2.0 resulting from the timing of losses occurring in certain jurisdictions where the tax benefit of those losses is not expected to be realized and (ii) $3.9 resulting from the net impact of the cancellation of certain intercompany indebtedness. During the third quarter of 2019, we recorded a pre-tax asset impairment charge of $10.8 that resulted from management’s decision to market a corporate asset for sale. That asset, which had an estimated fair value of $4.0, was marketed for sale beginning in the third quarter of 2019, and was subsequently sold during the fourth quarter of 2019 with no further impact to the Company’s results of operations. During the first quarter of 2019, we recognized pre-tax income of $6.2 related to an increase in the net asset value of an investment in an equity security. During the fourth quarter of 2018, we recorded pre-tax asset impairment charges of $14.2, related to the technology assets, tangible long-lived assets and trademarks of a business within our Food and Beverage reportable segment, and restructuring and other related pre-tax charges of $3.5 related to the rationalization of this business. No tax benefit resulted from these charges as we believe that it is more likely than not that we may not realize the benefit of the deferred tax assets associated with these charges. During the fourth quarter of 2018, the income tax provision was impacted by income tax charges of (i) $19.6 for adjustments to the deemed repatriation tax, (ii) $9.1 resulting from a reduction of foreign tax credits available to the Company arising from distributions of income taxed under the transition tax provisions of the Tax Act and (iii) $7.7 resulting from losses occurring in certain jurisdictions where the tax benefit of those losses is not expected to be realized. During the first quarter of 2018, the income tax provision was impacted by, among other items, 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. (4) During the fourth and third quarters of 2019, we recorded pre-tax charges of $149.0 and $52.0, respectively, to reduce the carrying value of the net assets of the Company’s discontinued operations, including relevant foreign currency translation adjustment balances, to the estimated proceeds expected to be received upon its disposition based on terms of the Sale Agreement executed during the fourth quarter of 2019, including consideration of net working capital, cash and debt of the discontinued operations business as of December 31, 2019, and in respect of certain deductions, each as defined in the Sale Agreement. During the third quarter of 2019, we recorded a pre-tax charge of $17.0 to the results of discontinued operations related to the settlement of a previous payment demand from a customer related to a project of the discontinued operations business. This settlement was paid by the Company on September 30, 2019. During the third and second quarters of 2019, the income tax benefits related to discontinued operations were impacted by benefits of $7.5 and $40.6, respectively, resulting from basis differences that will be realized through the disposition of the held-for-sale assets. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation —The financial statements include SPX FLOW, Inc. and its consolidated subsidiaries’ (“SPX FLOW,” “the Company,” “we,” “us,” or “our”) accounts prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) after the elimination of intercompany transactions. |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions—The financial statements of our foreign subsidiaries are translated into U.S. dollars in accordance with the Foreign Currency Matters Topic of the Financial Accounting Standards Board Codification (“Codification” or “ASC”). Balance sheet accounts are translated at the current rate at the end of each period and income statement accounts are translated at the average rate for each period. Gains and losses on foreign currency translations are reflected as a separate component of equity and other comprehensive income (loss). |
Cash Equivalents | Cash Equivalents—We consider highly liquid money market investments with original maturities of three months or less at the date of purchase to be cash equivalents. |
Revenue Recognition: Revenue from Contracts with Customers | Revenue Recognition: Revenue from Contracts with Customers (2019 and 2018 )—We adopted a new standard on revenue recognition effective January 1, 2018 that outlines a single comprehensive model for accounting for revenue arising from contracts with customers and supersedes most revenue recognition guidance. The core principle of the new standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in accordance with the transfer of control over those goods and services. The new standard also requires a number of disclosures intended to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue, and the related cash flows. See Note 6 for additional details regarding revenue from contracts with customers. Application of New Revenue Recognition Standard: Performance Obligations - Under the new revenue recognition standard, a contract with a customer is an agreement approved by both parties that creates enforceable rights and obligations, has commercial substance and includes identified payment terms under which collectability is probable. Once the Company has entered a contract with a customer, the contract is evaluated to identify performance obligations. Original equipment (“OE”) contracts recognized over time are typically accounted for as a single performance obligation due to the integration of equipment and components, including installation and commissioning of those products, that will together produce a combined output. For OE or aftermarket (“AM”) contracts recognized at a point in time, we evaluate whether we have promised to provide multiple distinct goods or services in the contract, which can include equipment, installation, commissioning, and service. Goods and services that are determined to be distinct are accounted for as separate performance obligations. If determined to be significant to the contract, installation and commissioning may be accounted for as a separate performance obligation. Performance obligations to provide service typically relate to maintenance, repair or upgrade activities to be performed on equipment we provide to customers. Service is typically determined to be a separate performance obligation satisfied as the service is completed. Shipping and handling are generally determined to be fulfillment activities and typically occur prior to when control of the underlying goods in a contract transfers to a customer. In the event we are required to perform shipping and handling activities after control of the goods transfers to a customer, we treat those obligations as fulfillment activities and accrue for the costs of performing the obligation when revenue on the related goods is recognized. Determination and Allocation of Transaction Price - We determine the transaction price for each contract based on the consideration we expect to receive for the products or services being provided under the contract. Certain OE contracts may vary in price due to variable consideration, primarily pertaining to late delivery penalties on OE contracts recognized over time and, to a lesser extent, OE contracts recognized at a point in time. We estimate variable consideration at the amount to which we expect to be entitled, which is included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur. Due to the customer- and contract-specific nature of late delivery penalties, we use the most likely amount method to measure variable consideration based on an assessment of key factors related to a contract program schedule and, for certain contracts, specific historical experience with customers. Actual amounts of consideration ultimately received may differ from our estimates. If actual results vary from our estimates, we will adjust these estimates, which would affect revenue and earnings in the period such variances become known. The total transaction price is allocated to each performance obligation in an amount based on the estimated relative standalone selling prices of the promised goods or services underlying each distinct performance obligation. In cases where we sell products with observable standalone selling prices, these selling prices are used to determine the standalone selling price. In cases where we sell an engineered customer-specific solution, we typically use the expected cost-plus margin approach to estimate the standalone selling price of each distinct performance obligation. Payment Terms - Customer prepayments and progress billings are customary for certain OE contracts within most of our product lines, including generally those in which revenue is recognized over time and, to a lesser extent, OE contracts in which revenue is recognized at a point in time but for which products are manufactured and/or engineered over a period greater than six months. Customer prepayments and progress billings are not considered a significant financing component because they are intended to protect either our customers or us in the event that some or all of the obligations under the contract are not completed. Our customers are invoiced for products and services upon delivery or when contractual milestones are met, resulting in outstanding receivables with contractual payment terms from these customers. Payments on contracts with customer prepayments or progress billings are generally aligned with the milestones defined in the related contract, while payments for all other products and services typically occur 30 to 60 days after delivery occurs or services are completed. Returns and Customer Sales Incentives - We have certain arrangements that require us to estimate, at the time of sale, the amounts of variable consideration that should be excluded from revenue as (i) certain amounts are not expected to be collected from customers and/or (ii) the product may be returned. We rely primarily on historical experience and/or specific customer agreements to estimate these amounts at the time of shipment and to reduce the transaction price. Arrangements that may impact the consideration to be collected from customers primarily include volume rebates and early payment discounts. We establish provisions for estimated returns primarily based on contract terms and historical experience. Contract Costs - The Company recognizes an asset for the incremental costs of obtaining a contract with a customer if the Company expects the benefit of those costs to be longer than one year. The Company applies a practical expedient to expense costs as incurred for costs to obtain a contract when the amortization period is expected to be less than one year. These costs primarily include the Company's internal sales force compensation program; under the terms of this program these costs are generally earned and recognized at the time the revenue is recognized. Revenues Recognized Over Time - Certain of our businesses recognize revenues and profits from long-term construction/installation contracts over time. Such method requires estimates of future revenues and costs over the full term of product delivery. We measure our performance principally by the contract costs incurred to date as a percentage of the estimated total costs for that contract at completion. For OE contracts that are recognized over time, our customers generally contract with us to provide a service of integrating a complex set of tasks and components into a single project of a highly engineered and tailored capability that generally cannot be re-sold to another customer without significant re-engineering and/or re-work cost. Such contracts are accounted for as a single performance obligation. For aftermarket service contracts, our customers generally receive and consume the benefits of the service as we perform, or our performance enhances a customer-controlled asset. As noted above, we generally recognize revenue over time using costs incurred to date relative to total estimated costs at completion (“EAC’s”) for these OE and service contracts. This measure best depicts the transfer of control to customers continuously over time, which occurs as we incur costs related to satisfaction of performance obligation(s) under our contracts. This transfer of control over time is also supported by the work being either customer-owned throughout the life of the project or by termination clauses which allow us to recover costs incurred plus a reasonable profit. Revenues, including estimated profits, are recorded proportionally as costs are incurred. For certain long-term aftermarket maintenance contracts where we stand ready to perform at any time, we recognize revenue ratably over the life of the related contract. We have established controls and procedures to update project EAC’s for contracts recognized over time at least quarterly. Costs to fulfill include primarily labor, materials and subcontractors’ costs, as well as other direct costs. Our cost estimation process is based upon (i) historical experience, (ii) the professional judgment and knowledge of our engineers, project managers, and operations and financial professionals, and (iii) an assessment of key factors such as progress towards completion and the related program schedule, identified opportunities and risks and the related changes in estimates of revenues and costs. EAC adjustments are recognized in the period in which they become known, including the resulting impact on revenues and operating income. These adjustments may result from positive (or negative) project performance and may result in an increase (or decrease) in operating income during performance, depending on whether or not we are successful in mitigating risks surrounding the technical, schedule and cost aspects of those performance obligations or realizing related opportunities. If and when EAC costs exceed revenue to be earned on a project, a provision for the entire expected loss on the performance obligation is recognized in the period the loss is determined. The impact of EAC adjustments on our revenues and operating income was insignificant during 2019 and 2018. Revenues Recognized at a Point in Time - For OE and AM contracts recognized at a point in time, we generally determine that control transfers when the customer has obtained legal title and the risks and rewards of ownership, which is usually upon delivery based on FOB shipping terms. Although these types of contracts may contain multiple performance obligations, they are often satisfied at or near the same time, which can have the same effect as though the performance obligations were combined into a single performance obligation and allocated the total amount of the transaction price. For certain of our OE contracts recognized at a point in time, customer acceptance may be required before control transfers to the customer. Although products that require customer acceptance are often recognized over time, these products may also be recognized at a point in time when the contract does not provide us with an enforceable right to recover costs plus a reasonable profit margin in the event of contract termination. Customer acceptance provisions in our contracts with customers generally relate to promises to provide highly engineered products that require precise outputs or customer-defined performance capabilities. 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 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. 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). Revenue Recognition (2017) —In 2017, we recognized revenues from product sales upon shipment to the customer or, to a lesser extent, upon receipt by the customer, in accordance with agreed-upon customer terms. Revenues from long-term service contracts and maintenance arrangements were recognized on a straight-line basis over the agreement period. Certain of our businesses recognized revenues and profits from long-term construction/installation contracts under the percentage-of-completion method of accounting. Such method required estimates of future revenues and costs over the full term of product delivery. We measured our percentage-of-completion principally by the contract costs incurred to date as a percentage of the estimated total costs for that contract at completion. We recognized revenues for similar short-term contracts using the completed-contract method of accounting. Provisions for any estimated losses on uncompleted long-term contracts were made in the period in which such losses were determined. In the case of customer change orders for uncompleted long-term contracts, estimated recoveries were included for work performed in forecasting ultimate profitability on certain contracts. Due to uncertainties inherent in the estimation process, it was reasonably possible that completion costs, including those that arose from contract penalty provisions and final contract settlements, could be revised in the near-term. Such revisions to costs and income were recognized in the period in which the revisions were determined. Unbilled receivables arose when revenues had been recorded but the amounts had not been billed under the terms of the contracts. These amounts were recoverable from customers upon various measures of performance, including |
Research and Development Costs | Research and Development Costs—The Company conducts research and development activities for the purpose of developing and improving new products. The related expenditures are expensed as incurred and totaled $18.5, $18.2 and $17.3 in 2019, 2018 and 2017, respectively, and are classified within selling, general and administrative expense within the consolidated statements of operations. |
Property, Plant and Equipment | Property, Plant and Equipment —Property, plant and equipment (“PP&E”) is stated at cost, less accumulated depreciation. We use the straight-line method for computing depreciation expense over the useful lives of PP&E, which do not exceed 40 years for buildings and range from 3 to 15 years for machinery and equipment. Depreciation expense, including amortization of finance leases (2019) and capital leases (2018 and 2017), was $26.9, $28.5 and $29.9 for the years ended December 31, 2019, 2018 and 2017, respectively. Leasehold improvements are amortized over the life of the related asset or the life of the lease, whichever is shorter. |
Income Taxes | Income Taxes —Deferred income tax assets and liabilities, as presented in the consolidated balance sheets, reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. We periodically assess whether deferred tax assets will be realized and the adequacy of deferred tax liabilities, including the results of local, state, federal or foreign statutory tax audits or estimates and judgments used. |
Derivative Financial Instruments | Derivative Financial Instruments —We use foreign currency forward contracts to manage our exposures to fluctuating currency exchange rates. Derivatives are recorded on the balance sheet and measured at fair value. For derivatives designated as hedges of the fair value of assets or liabilities, the changes in fair values of both the derivatives and the hedged items are recorded in current earnings. For derivatives designated as cash flow hedges, the effective portion of the changes in fair value of the derivatives is recorded in “Accumulated Other Comprehensive Loss” (“AOCL”) and subsequently recognized in earnings when the hedged items impact earnings. Changes in the fair value of derivatives not designated as hedges, and the ineffective portion of cash flow hedges, are recorded in current earnings. We do not enter into financial instruments for speculative or trading purposes. For those transactions that are designated as cash flow hedges, on the date the derivative contract is entered into, we document our hedge relationship, including identification of the hedging instruments and the hedged items, as well as our risk management objectives and strategies for undertaking the hedge transaction. We also assess, both at inception and quarterly thereafter, whether such derivatives are highly effective in offsetting changes in the fair value of the hedged item. See Notes 14 and 17 for further information. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets —Consistent with the requirements of the Intangible—Goodwill and Other Topic of the Codification, the fair values of our reporting units generally are estimated using discounted cash flow projections that we believe to be reasonable under current and forecasted circumstances, the results of which form the basis for making judgments about the recoverability of carrying values of the net assets of our reporting units. Other considerations are also incorporated, including comparable industry price multiples. The financial results of many of our businesses closely follow changes in the industries and end markets that they serve. Accordingly, we consider estimates and judgments that affect the future cash flow projections, including principal methods of competition such as volume, price, service, product performance and technical innovations and estimates associated with cost improvement initiatives, capacity utilization and assumptions for inflation and blended effective tax rates. Any significant change in market conditions and estimates or judgments used to determine expected future cash flows that indicate a reduction in carrying value may give rise to impairment in the period that the change becomes known. We perform our annual goodwill impairment testing during the fourth quarter in conjunction with our annual financial planning process, with such testing based primarily on events and circumstances existing as of the end of the third quarter. In addition, we test goodwill for impairment on a more frequent basis if there are indications of potential impairment. |
Equity Method Investments | Investments in Unconsolidated Companies—Investments in unconsolidated companies where we exercise significant influence but do not have control are accounted for using the equity method. |
Variable Interest Entity | In determining whether we are the primary beneficiary of a variable interest entity (“VIE”), we perform a qualitative analysis that considers the design of the VIE, the nature of our involvement and the variable interests held by other parties to determine which party has the power to direct the activities of the VIE that most significantly impact the entity's economic performance, and which party has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. We have interests in VIEs, primarily joint ventures, in which we are the primary beneficiary. The financial position, results of operations and cash flows of our VIEs are not material, individually or in the aggregate, in relation to our consolidated financial statements. |
Discontinued Operations | Discontinued operations: Classification and Measurement - The Company classifies assets and liabilities of a business or asset group as held for sale, and the results of its operations as income (loss) from discontinued operations, net, for all periods presented, when (i) we commit to a plan to divest a business or asset group, actively begin marketing it for sale, and when it is deemed probable of occurrence within the next twelve months, and (ii) when the business or asset group reflects a strategic shift that has, or will have, a major effect on the Company’s operations and its financial results. In measuring the assets and liabilities held for sale, the Company evaluates which businesses or asset groups are being marketed for sale, including an allocation of |
Use of Estimates | The preparation of our consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues (e.g., our estimates related to contract revenues recognized over time described above) and expenses during the reporting period. We evaluate these estimates and judgments on an ongoing basis and base our estimates on experience, current and expected future conditions, third-party evaluations and various other assumptions that we believe are reasonable under the circumstances. The results of these estimates form the basis for making judgments about the carrying values of assets and liabilities as well as identifying and assessing the accounting treatment with respect to commitments and contingencies. Actual results may differ from the estimates and assumptions used in the consolidated financial statements and related notes. |
Accounts Receivable Allowances | Accounts Receivable Allowances—We provide allowances for estimated losses on uncollectible accounts based on our historical experience and the evaluation of the likelihood of success in collecting specific customer receivables. |
Inventory | Inventory—We estimate losses for excess and/or obsolete inventory and the net realizable value of inventory based on the aging and historical utilization of the inventory and the evaluation of the likelihood of recovering the inventory costs based on anticipated demand and selling price. |
Long-Lived Assets and Intangible Assets Subject to Amortization and Goodwill and Indefinite-Lived Intangible Assets | Long-Lived Assets and Intangible Assets Subject to Amortization— We continually review whether events and circumstances subsequent to the acquisition of any long-lived assets, or intangible assets subject to amortization, have occurred that indicate the remaining estimated useful lives of those assets may warrant revision or that the remaining balance of those assets may not be fully recoverable. If events and circumstances indicate that the long-lived assets should be reviewed for possible impairment, we use projections to assess whether future cash flows on an undiscounted basis related to the assets are likely to exceed the related carrying amount. We will record an impairment charge to the extent that the carrying value of the assets exceed their fair values as determined by valuation techniques appropriate in the circumstances, which could include the use of similar projections on a discounted basis. |
Legal | Legal— It is our policy to accrue for estimated losses from legal actions or claims when events exist that make the realization of the losses probable and they can be reasonably estimated. We do not discount legal obligations or reduce them by anticipated insurance recoveries. |
Environmental Remediation Costs | Environmental Remediation Costs—We expense costs incurred to investigate and remediate environmental issues unless they extend the economic useful lives of related assets. We record liabilities when it is probable that an obligation has been incurred and the amounts can be reasonably estimated. Our environmental accruals cover anticipated costs, including investigation, remediation and operation and maintenance of clean-up sites. Our estimates are based primarily on investigations and remediation plans established by independent consultants, regulatory agencies and potentially responsible third parties. We generally do not discount environmental obligations or reduce them by anticipated insurance recoveries. |
Self-Insurance | Self-Insurance—We are self-insured for certain of our workers' compensation, automobile, product, general liability and health costs and, thus, record an accrual for our retained liability. The liability for these programs is reflected in our consolidated balance sheets as of December 31, 2019 and 2018 within “Accrued expenses. |
Warranty | Warranty —In the normal course of business, we issue product warranties for specific products and provide for the estimated future warranty cost in the period in which the sale is recorded. We provide for the estimate of warranty cost based on contract terms and historical warranty loss experience that is periodically adjusted for recent actual experience. Because warranty estimates are forecasts that are based on the best available information, actual claims costs may differ from amounts provided. In addition, due to the seasonal fluctuations at certain of our businesses, the timing of warranty provisions and the usage of warranty accruals can vary period to period. We make adjustments to initial obligations for warranties as changes in |
Income Taxes | Income Taxes—We review our income tax positions on a continuous basis and accrue for potential uncertain tax positions in accordance with the Income Taxes Topic of the Codification. Accruals for these uncertain tax positions are classified as “Deferred and other income taxes” in the accompanying consolidated balance sheets based on an expectation as to the timing of when the matter will be resolved. As events change or resolutions occur, these accruals are adjusted, such as in the case of audit settlements with taxing authorities. For tax positions where it is more likely than not that a tax benefit will be sustained, we record the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority, assuming such authority has full knowledge of all relevant information. These reviews also entail analyzing the realization of deferred tax assets. We establish a valuation allowance against deferred tax assets when, based on all available evidence, we believe that it is more likely than not that we will not realize a benefit associated with such assets. |
Employee Benefit Plans | Employee Benefit Plans— Certain of our employees participate in defined benefit pension and other postretirement plans we sponsor. The expense for these plans is derived from an actuarial calculation based on the plans' provisions and assumptions regarding discount rates and rates of increase in compensation levels. Discount rates for most of the plans are based on representative bond indices. Rates of increase in compensation levels are established based on expectations of current and foreseeable future increases in compensation. Independent actuaries are consulted in determining these assumptions. See Note 11 |
New Accounting Pronouncements | The following is a summary of new accounting pronouncements that apply or may apply to our business. New Lease 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 8 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 2019” below for further details. Leases accounted for under the new standard have initial remaining lease terms of 1 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. See Note 7 for additional details regarding the Company’s leases. Summary of Effects of Lease Accounting Standard Update Adopted in 2019 The cumulative effects of the changes made to our consolidated balance sheet as of the beginning of 2019 as a result of the adoption of the accounting standard update on leases, including those included in continuing operations and discontinued operations, 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 $ 33.3 $ (0.9) $ — $ — $ (0.9) $ 32.4 Assets of discontinued operations - current 244.4 (0.3) — — (0.3) 244.1 Buildings and leasehold improvements 175.5 — (7.2) — (7.2) 168.3 Accumulated depreciation (284.9) — 0.7 — 0.7 (284.2) Other assets 111.1 57.2 5.8 (8.4) 54.6 165.7 Assets of discontinued operations - long-term 412.4 14.6 — — 14.6 427.0 Liabilities Accrued expenses 149.0 16.1 0.9 — 17.0 166.0 Current maturities of long-term debt 20.8 — (0.7) — (0.7) 20.1 Liabilities of discontinued operations - current 133.4 4.1 — — 4.1 137.5 Long-term debt 718.3 — (6.1) — (6.1) 712.2 Other long-term liabilities 67.5 40.2 5.3 — 45.5 113.0 Liabilities of discontinued operations - long-term 60.6 10.2 — — 10.2 70.8 Equity Accumulated deficit (265.6) — (0.1) (8.4) (8.5) (274.1) |
USE OF ESTIMATES (Tables)
USE OF ESTIMATES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of activity for allowance accounts | Summarized below is the activity for the allowance for uncollectible accounts: Year ended December 31, 2019 2018 2017 Balance at beginning of year $ 9.0 $ 11.8 $ 11.2 Allowances provided 4.8 1.9 3.4 Write-offs, net of recoveries, credits issued and other (3.5) (4.7) (2.8) Balance at end of year $ 10.3 $ 9.0 $ 11.8 |
Summary of accrued expenses components | Summarized in the table below are the components of accrued expenses at December 31, 2019 and 2018. December 31, 2019 2018 Employee benefits (1) $ 57.7 $ 64.0 Current portion of operating lease liabilities 15.4 — Warranty 7.0 6.7 Restructuring 7.6 7.1 Other (2) 74.3 71.2 Total $ 162.0 $ 149.0 (1) Employee benefits consist of various employee-related items including, among other items, accrued bonus, vacation, payroll and payroll-related taxes. |
Analysis of product warranty accrual | The following is an analysis of our product warranty accrual for the periods presented: Year ended December 31, 2019 2018 2017 Balance at beginning of year $ 7.0 $ 7.4 $ 7.1 Provisions 6.9 7.7 7.7 Usage (6.6) (7.8) (7.8) Currency translation adjustment — (0.3) 0.4 Balance at end of year 7.3 7.0 7.4 Less: Current portion of warranty 7.0 6.7 7.0 Non-current portion of warranty $ 0.3 $ 0.3 $ 0.4 |
NEW ACCOUNTING PRONOUNCEMENTS N
NEW ACCOUNTING PRONOUNCEMENTS NEW ACCOUNTING PRONOUNCEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The cumulative effects of the changes made to our consolidated balance sheet as of the beginning of 2019 as a result of the adoption of the accounting standard update on leases, including those included in continuing operations and discontinued operations, 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 $ 33.3 $ (0.9) $ — $ — $ (0.9) $ 32.4 Assets of discontinued operations - current 244.4 (0.3) — — (0.3) 244.1 Buildings and leasehold improvements 175.5 — (7.2) — (7.2) 168.3 Accumulated depreciation (284.9) — 0.7 — 0.7 (284.2) Other assets 111.1 57.2 5.8 (8.4) 54.6 165.7 Assets of discontinued operations - long-term 412.4 14.6 — — 14.6 427.0 Liabilities Accrued expenses 149.0 16.1 0.9 — 17.0 166.0 Current maturities of long-term debt 20.8 — (0.7) — (0.7) 20.1 Liabilities of discontinued operations - current 133.4 4.1 — — 4.1 137.5 Long-term debt 718.3 — (6.1) — (6.1) 712.2 Other long-term liabilities 67.5 40.2 5.3 — 45.5 113.0 Liabilities of discontinued operations - long-term 60.6 10.2 — — 10.2 70.8 Equity Accumulated deficit (265.6) — (0.1) (8.4) (8.5) (274.1) |
Discontinued Operations and Dis
Discontinued Operations and Disposal Groups (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | Income (loss) from discontinued operations for the years ended December 31, 2019, 2018 and 2017 were as follows: Year ended December 31, 2019 2018 2017 Revenues $ 489.7 $ 496.2 $ 468.3 Cost of products sold (1)(2) 353.2 353.0 339.4 Gross profit 136.5 143.2 128.9 Selling, general and administrative (1) 100.2 81.9 83.4 Intangible amortization (1) 1.9 3.9 3.8 Loss on Disposal Group (3) 201.0 — — Charge related to procurement agreement (3) 5.0 — — Asset impairment charges — 0.2 — Restructuring and other related charges — 0.8 1.5 Operating income (loss) (171.6) 56.4 40.2 Other income (expense), net (1.6) 0.4 (2.6) Interest expense, net (3) (11.8) (12.8) (16.3) Income (loss) from discontinued operations before income taxes (185.0) 44.0 21.3 Income tax benefit (provision) (4) 35.3 (9.8) (8.5) Income (loss) from discontinued operations, net of tax (149.7) 34.2 12.8 Less: Income (loss) attributable to noncontrolling interests 0.3 (0.3) (0.6) Income (loss) from discontinued operations, net of tax and noncontrolling interests $ (150.0) $ 34.5 $ 13.4 (1) During the six months ended December 31, 2019, depreciation of property, plant and equipment and amortization of intangible assets, related to our discontinued operations, were ceased, as the assets of the Disposal Group were classified as held-for-sale for the period. (2) During the year ended December 31, 2019, we recorded a charge to “Cost of products sold” of $17.0 related to the settlement and payment of a demand from a customer related to a project of the Disposal Group. See Note 1 6 for further information regarding this settlement and the related payment demand. (3) See previous paragraphs for further discussion regarding the (i) loss on Disposal Group. (ii) charge related to the Procurement Agreement to be entered into with the Buyer in connection with the Transaction, and (iii) the allocation of interest expense to discontinued operations. (4) During the year ended December 31, 2019, we recorded an income tax benefit of $35.3 on $185.0 of pre-tax loss from discontinued operations, resulting in an effective tax rate of 19.1%. The effective tax rate for 2019 was impacted by (i) a benefit of $30.2 resulting from basis differences that will be realized through the disposition of the held-for-sale assets and (ii) the effect that the majority of the pre-tax loss on Disposal Group and pre-tax charge related to the Procurement Agreement will not result in a tax benefit, such that only $9.7 of tax benefit was recognized on those pre-tax charges. During the year ended December 31, 2018, we recorded an income tax provision of $9.8 on $44.0 of pre-tax income from discontinued operations, resulting in an effective tax rate of 22.3%. During the year ended December 31, 2017, we recorded an income tax provision of $8.5 on $21.3 of pre-tax income from discontinued operations, resulting in an effective tax rate of 39.9%. The effective tax rate for 2017 was impacted by an expense of $0.8 resulting from losses occurring in certain jurisdictions for which the tax benefit of those losses is not expected to be recognized. The major classes of assets and liabilities, excluding intercompany balances, as they are excluded from the sale and expected to be settled prior to closing, classified as held-for-sale in the accompanying consolidated balance sheets, were as follows: December 31, 2019 December 31, 2018 ASSETS Current assets: Cash and equivalents $ 3.1 $ 16.3 Accounts receivable, net 99.4 97.3 Contract assets 43.0 35.5 Inventories, net 72.8 84.3 Other current assets 12.9 11.0 Total current assets 231.2 244.4 Property, plant and equipment, net 87.4 84.2 Goodwill 194.9 193.9 Intangibles, net 92.3 93.1 Other assets (1) 59.2 41.2 Total long-term assets (2) 433.8 412.4 Total assets, before valuation allowance 665.0 656.8 Less: valuation allowance (3) (201.0) — TOTAL ASSETS, net of valuation allowance (2) $ 464.0 $ 656.8 LIABILITIES Current liabilities: Accounts payable $ 46.6 $ 46.7 Contract liabilities 43.6 38.5 Accrued expenses (1) 52.6 46.3 Income taxes payable 1.6 1.5 Current maturities of long-term debt 0.5 0.4 Total current liabilities 144.9 133.4 Long-term debt 3.6 3.8 Deferred and other income taxes 13.6 12.1 Other long-term liabilities (1) 58.4 44.7 Total long-term liabilities (2) 75.6 60.6 TOTAL LIABILITIES (2) $ 220.5 $ 194.0 (1) As of December 31, 2019, “Other assets” included $13.1 of operating lease ROU assets, “Accrued expenses” included $4.2 of current portion of operating lease liabilities and “Other long-term liabilities” included $9.2 of long-term portion of operating lease liabilities, each related to the Company’s adoption of the new lease pronouncement effective January 1, 2019. (2) The total assets and liabilities of discontinued operations are classified in current assets and liabilities, respectively, in our consolidated balance sheet as of December 31, 2019, as the disposition of the Disposal Group is expected to occur within twelve months of that date. The assets and liabilities of discontinued operations are classified in their respective current or long-term classifications, respectively, in our consolidated balance sheet as of December 31, 2018, in accordance with the nature and underlying classification of such assets and liabilities, as the disposition of the Disposal Group did not occur within twelve months of that date. (3) See previous paragraphs for further discussion regarding the valuation allowance recorded as of December 31, 2019. The following table summarizes the significant non-cash operating items and capital expenditures reflected in cash flows of discontinued operations for the years ended December 31, 2019, 2018 and 2017: Year ended December 31, 2019 2018 2017 Loss on Disposal Group (1) $ 201.0 $ — $ — Charge related to procurement agreement (1) 5.0 — — Depreciation and amortization (2) 7.8 17.0 17.5 Impairment of long-lived assets — 0.2 — Capital expenditures 7.5 6.3 3.2 (1) See previous paragraphs for further discussion regarding the loss on Disposal Group and charge related to the Procurement Agreement. (2) As noted above, depreciation of property, plant and equipment and amortization of intangible assets were ceased during the six months ended December 31, 2019, as the assets of the Disposal Group were classified as held-for-sale for the period. |
INFORMATION ON REPORTABLE SEG_2
INFORMATION ON REPORTABLE SEGMENTS, CORPORATE EXPENSE AND OTHER (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of financial data for reportable segments | Financial data for our reportable segments as of or for the years ended December 31, 2019, 2018 and 2017 were as follows: As of or for the Year Ended December 31, 2019 2018 2017 Revenues: Food and Beverage $ 702.9 $ 743.9 $ 715.9 Industrial 803.7 850.0 767.3 Total revenues $ 1,506.6 $ 1,593.9 $ 1,483.2 Income: Food and Beverage $ 90.5 $ 87.7 $ 74.9 Industrial 110.5 103.5 89.0 Total income for reportable segments $ 201.0 $ 191.2 $ 163.9 Corporate expense (1) 63.9 55.5 66.0 Pension and postretirement service costs 0.9 1.7 1.2 Asset impairment charges 11.2 14.4 4.9 Restructuring and other related charges 9.3 7.6 12.9 Consolidated operating income $ 115.7 $ 112.0 $ 78.9 Capital expenditures: Food and Beverage $ 5.2 $ 7.4 $ 5.8 Industrial 9.2 8.8 5.3 Other (2) 14.1 3.0 5.1 Total capital expenditures $ 28.5 $ 19.2 $ 16.2 Depreciation and amortization: Food and Beverage $ 14.4 $ 16.1 $ 17.0 Industrial 15.5 16.9 17.1 Other (2) 8.4 8.7 9.6 Total depreciation and amortization $ 38.3 $ 41.7 $ 43.7 Identifiable assets: Food and Beverage $ 895.5 $ 889.2 $ 924.3 Industrial 781.3 787.5 832.3 Other (3) 296.6 218.3 206.8 Total identifiable assets $ 1,973.4 $ 1,895.0 $ 1,963.4 Geographic areas: Revenues (4) : United States $ 544.9 $ 531.2 $ 503.6 China 166.3 150.8 125.7 Germany 84.1 94.1 96.2 United Kingdom 132.7 91.2 92.5 Denmark 90.3 89.5 98.0 France 37.5 56.8 76.7 Other 450.8 580.3 490.5 Total revenues $ 1,506.6 $ 1,593.9 $ 1,483.2 Long-lived assets: United States $ 238.0 $ 219.6 $ 229.6 Other 172.3 142.8 149.7 Total long-lived assets $ 410.3 $ 362.4 $ 379.3 (1) Includes $7.1, $7.5 and $9.4 for the years ended December 21, 2019, 2018 and 2017, respectively, related to costs for certain centralized functions/services provided and/or administered by SPX FLOW that were previously charged to business units of which the related financial results of operations have been reclassified to discontinued operations. These centralized functions/services included, but were not limited to, information technology, shared services for accounting, payroll services, supply chain, and manufacturing and process improvement operations/ services. These costs generally represent the costs of employees who provided such centralized functions/services to the business units reclassified as discontinued operations but who are expected to remain employees of SPX FLOW upon the expected disposition of the discontinued operations. (2) Relates to corporate PP&E or PP&E that is utilized by both of our reportable segments along with related depreciation expense. Depreciation reflects the cost of our Charlotte, NC corporate headquarters, among other corporate PP&E. (3) Relates primarily to assets (e.g., cash and PP&E) of various corporate subsidiaries. (4) Revenues are included in the above geographic areas based on the country that recorded the customer revenue. |
Revenue from Contract with Cust
Revenue from Contract with Customer (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues recognized over time | The following table provides revenues recognized over time by reportable segment for the the years ended December 31, 2019 and 2018: Year ended December 31, 2019 2018 Revenues recognized over time: Food and Beverage $ 282.9 $ 309.0 Industrial 60.8 94.3 Total revenues recognized over time $ 343.7 $ 403.3 |
Disaggregated information about revenues | The following tables provide disaggregated information about our OE, including Food and Beverage systems, and aftermarket revenues by reportable segment for the years ended December 31, 2019 and 2018: Year ended December 31, 2019 Year ended December 31, 2018 Original Equipment Aftermarket Total Revenues Original Equipment Aftermarket Total Revenues Food and Beverage $ 453.6 (1) $ 249.3 $ 702.9 $ 491.8 (1) $ 252.1 $ 743.9 Industrial 540.8 262.9 803.7 575.6 274.4 850.0 Total revenues $ 994.4 $ 512.2 $ 1,506.6 $ 1,067.4 $ 526.5 $ 1,593.9 (1) Includes $243.9 and $280.9 for the years ended December 31, 2019 and 2018, respectively, of revenue realized from the sale of highly engineered Food and Beverage systems. |
Contract balances | Our contract accounts receivable, assets and liabilities as of December 31, 2019 and 2018, respectively, and changes in such balances, were as follows: December 31, 2019 December 31, 2018 Change (1) Contract accounts receivable (2) $ 231.9 $ 263.9 $ (32.0) Contract assets 27.3 33.8 (6.5) Contract liabilities (116.3) (136.4) 20.1 Net contract balance $ 142.9 $ 161.3 $ (18.4) (1) The $18.4 decrease in our net contract balance from December 31, 2018 to December 31, 2019 was primarily due to the timing of advance and milestone payments received on certain Food and Beverage 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 consolidated balance sheets. Amounts are presented before consideration of the allowance for uncollectible accounts. |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Right-of use Assets and Liabilities | The components of operating and finance lease ROU assets and liabilities as of December 31, 2019 were as follows: December 31, 2019 Balance Sheet Caption in Which Balance is Reported Finance lease ROU assets $ 0.5 Property, plant and equipment, net Operating lease ROU assets 48.8 Other assets Current portion of operating lease liabilities 15.4 Accrued expenses Current portion of finance lease liabilities 0.1 Current maturities of long-term debt Long-term finance lease liabilities 0.5 Long-term debt Long-term operating lease liabilities 40.4 Other long-term liabilities Assets held through finance lease agreements at December 31, 2019 and capital lease agreements at December 31, 2018 comprise the following: December 31, 2019 2018 Buildings $ 0.4 $ 7.5 Machinery and equipment 0.5 0.3 Total 0.9 7.8 Less: accumulated depreciation (0.4) (1.0) Net book value $ 0.5 $ 6.8 |
Components of Lease Expense | The components of lease expense for the year ended December 31, 2019 were as follows: Year ended December 31, 2019 (1) Operating lease cost (2) $ 18.9 Short-term lease cost (2) 2.7 Variable lease cost (2) 0.7 Total lease cost $ 22.3 (1) Finance lease costs, including amortization of finance lease ROU assets and interest on finance lease liabilities, were less than $0.1 individually, for the year ended December 31, 2019. (2) Included in “Cost of products sold” and “Selling, general and administrative” in our consolidated statement of operations. |
Future Lease Payments, Operating | The future lease payments under operating and finance leases with initial remaining terms in excess of one year as of December 31, 2019 were as follows: Year Ending December 31, Operating leases Finance leases Total 2020 $ 16.5 $ 0.2 $ 16.7 2021 12.1 0.2 12.3 2022 8.7 0.1 8.8 2023 6.6 0.1 6.7 2024 9.3 0.1 9.4 Thereafter 10.5 — 10.5 Total lease payments 63.7 0.7 64.4 Less: interest 7.9 0.1 8.0 Present value of lease liabilities $ 55.8 $ 0.6 $ 56.4 Key assumptions used in accounting for our operating and finance leases as of December 31, 2019 were as follows: December 31, 2019 Weighted-average remaining lease term (years): Operating leases 6.0 Finance leases 4.3 Weighted-average discount rate: Operating leases 4.49 % Finance leases 5.32 % |
Future Lease Payments, Finance | The future lease payments under operating and finance leases with initial remaining terms in excess of one year as of December 31, 2019 were as follows: Year Ending December 31, Operating leases Finance leases Total 2020 $ 16.5 $ 0.2 $ 16.7 2021 12.1 0.2 12.3 2022 8.7 0.1 8.8 2023 6.6 0.1 6.7 2024 9.3 0.1 9.4 Thereafter 10.5 — 10.5 Total lease payments 63.7 0.7 64.4 Less: interest 7.9 0.1 8.0 Present value of lease liabilities $ 55.8 $ 0.6 $ 56.4 Key assumptions used in accounting for our operating and finance leases as of December 31, 2019 were as follows: December 31, 2019 Weighted-average remaining lease term (years): Operating leases 6.0 Finance leases 4.3 Weighted-average discount rate: Operating leases 4.49 % Finance leases 5.32 % |
Supplemental Cash Flows | Cash flows and non-cash activities related to our operating and finance leases for the year ended December 31, 2019 were as follows: Year ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid for operating leases $ 19.3 Operating cash flows paid for finance leases — Financing cash flows paid for finance leases 0.1 Non-cash activities: Operating lease ROU assets obtained in exchange for new operating lease liabilities 13.9 Finance lease ROU assets obtained in exchange for new finance lease liabilities 0.4 |
RESTRUCTURING AND OTHER RELAT_2
RESTRUCTURING AND OTHER RELATED CHARGES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING AND RELATED CHARGES | Restructuring and other related charges for the years ended December 31, 2019, 2018 and 2017 are described in more detail below and in the applicable sections that follow: Year ended December 31, 2019 2018 2017 Employee termination costs $ 9.3 $ 6.6 $ 10.0 Facility consolidation costs — 1.0 2.9 Total $ 9.3 $ 7.6 $ 12.9 2018 Charges: Employee Termination Costs Facility Consolidation Costs Total Restructuring and Other Related Charges Food and Beverage $ 4.4 $ 0.9 $ 5.3 Industrial 2.3 0.1 2.4 Other (0.1) — (0.1) Total $ 6.6 $ 1.0 $ 7.6 2017 Charges: Charges for 2017 noted below related to our global realignment program. Employee Termination Costs Facility Consolidation Costs Total Restructuring and Other Related Charges Food and Beverage $ 6.6 $ 1.6 $ 8.2 Industrial 3.6 1.3 4.9 Other (0.2) — (0.2) Total $ 10.0 $ 2.9 $ 12.9 |
Schedule of the analysis of restructuring liabilities | 2019 Charges: Employee Termination Costs Facility Consolidation Costs Total Restructuring and Other Related Charges Food and Beverage $ 3.9 $ — $ 3.9 Industrial 3.1 — 3.1 Other 2.3 — 2.3 Total $ 9.3 $ — $ 9.3 The following is an analysis of our restructuring liabilities (included in “Accrued expenses” in our consolidated balance sheets) for the years ended December 31, 2019, 2018 and 2017: December 31, 2019 2018 2017 Balance at beginning of year $ 7.1 $ 10.7 $ 26.7 Restructuring and other related charges 9.3 7.6 12.9 Utilization — cash (8.3) (11.2) (30.9) Currency translation adjustment and other (0.5) — 2.0 Balance at end of year $ 7.6 $ 7.1 $ 10.7 |
INVENTORIES, NET (Tables)
INVENTORIES, NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories at December 31, 2019 and 2018 comprised the following: December 31, 2019 2018 Finished goods $ 82.5 $ 79.1 Work in process 47.0 57.3 Raw materials and purchased parts 85.9 91.3 Total FIFO cost 215.4 227.7 Excess of FIFO cost over LIFO inventory value (7.3) (7.2) Total inventories $ 208.1 $ 220.5 |
GOODWILL, OTHER INTANGIBLE AS_2
GOODWILL, OTHER INTANGIBLE ASSETS, AND ASSET IMPAIRMENT CHARGES (Tables) | 12 Months Ended |
Dec. 31, 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 for the year ended December 31, 2019 were as follows: December 31, 2018 Impairments Foreign Currency Translation and Other December 31, 2019 Food and Beverage $ 261.5 $ — $ (4.0) $ 257.5 Industrial (1) 288.9 — (1.3) 287.6 Total $ 550.4 $ — $ (5.3) $ 545.1 (1) The carrying amount of goodwill included $133.6 of accumulated impairments as of December 31, 2019 and 2018. As noted above, in connection with the reclassification of the substantial portion of our former Power and Energy reportable segment (excluding primarily the Bran+Luebbe product line of that former segment) to discontinued operations, as discussed further in Note 4 , and the retention and reclassification of the Bran+Luebbe product line into our Industrial reportable segment, we performed a re-allocation of our former Power and Energy goodwill balance between the Disposal Group and the business being retained. This resulted in a net increase in Industrial reportable segment goodwill of $70.0 as of December 31, 2018 and a corresponding reduction in the goodwill of the former Power and Energy segment. The goodwill balance of the Industrial reportable segment as of December 31, 2018 reflects this reclassification. The changes in the carrying amount of goodwill by reportable segment for the year ended December 31, 2018 were as follows: December 31, 2017 Impairments Foreign Currency Translation and Other December 31, 2018 Food and Beverage $ 271.8 $ — $ (10.3) $ 261.5 Industrial (1) 297.7 — (8.8) 288.9 Total $ 569.5 $ — $ (19.1) $ 550.4 (1) The carrying amount of goodwill included $133.6 and $134.2 of accumulated impairments as of December 31, 2018 and 2017, respectively. As noted above, we performed a re-allocation of our former Power and Energy goodwill balance between the Disposal Group and the portion of that business being retained. This resulted in net increases in Industrial reportable segment goodwill of $70.0 and $70.6 as of December 31, 2018 and 2017, respectively, and corresponding reductions in the goodwill of the former Power and Energy segment. The goodwill balances of the Industrial reportable segment noted above reflect these reclassifications. |
Schedule of finite-lived intangible assets | Identifiable intangible assets were as follows: December 31, 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 $ 124.7 $ (97.5) $ 27.2 $ 125.8 $ (90.2) $ 35.6 Technology 61.7 (46.6) 15.1 62.1 (43.5) 18.6 Patents 5.6 (4.5) 1.1 5.7 (4.3) 1.4 Other 8.1 (8.1) — 8.1 (8.1) — 200.1 (156.7) 43.4 201.7 (146.1) 55.6 Trademarks with indefinite lives 164.7 — 164.7 163.6 — 163.6 Total $ 364.8 $ (156.7) $ 208.1 $ 365.3 $ (146.1) $ 219.2 |
Schedule of indefinite-lived intangible assets | Identifiable intangible assets were as follows: December 31, 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 $ 124.7 $ (97.5) $ 27.2 $ 125.8 $ (90.2) $ 35.6 Technology 61.7 (46.6) 15.1 62.1 (43.5) 18.6 Patents 5.6 (4.5) 1.1 5.7 (4.3) 1.4 Other 8.1 (8.1) — 8.1 (8.1) — 200.1 (156.7) 43.4 201.7 (146.1) 55.6 Trademarks with indefinite lives 164.7 — 164.7 163.6 — 163.6 Total $ 364.8 $ (156.7) $ 208.1 $ 365.3 $ (146.1) $ 219.2 |
EMPLOYEE BENEFIT PLANS EMPLOYEE
EMPLOYEE BENEFIT PLANS EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Summary of estimated future benefit payments | Following is a summary, as of December 31, 2019, of the estimated future benefit payments for our foreign and domestic pension plans and our domestic postretirement plan in each of the next five fiscal years and in the aggregate for five fiscal years thereafter. Benefit payments are paid from plan assets or directly by us for our unfunded plans. Foreign Pension Benefits Domestic Pension Benefits Domestic Postretirement Benefits 2020 $ 2.4 $ — $ 0.1 2021 2.6 — 0.1 2022 2.1 — 0.1 2023 2.3 — 0.1 2024 2.3 — 0.1 Subsequent five years 13.3 2.8 0.6 |
Schedule of change in projected benefit obligation | The following tables show the foreign and domestic pension plans’ funded status and amounts recognized in our consolidated balance sheets: Foreign Pension Plans Domestic Pension Plan Domestic Postretirement Plan 2019 2018 2019 2018 2019 2018 Change in projected benefit obligation: Projected benefit obligation - beginning of year $ 47.3 $ 46.1 $ 10.7 $ 9.8 $ 4.0 $ 4.3 Service cost 0.8 0.6 — 1.0 0.1 0.1 Interest cost 0.7 0.7 0.2 0.3 0.2 0.2 Actuarial losses (gains) 4.5 (1.9) 0.7 (0.3) 0.4 (0.4) Benefits paid (2.4) (2.5) (6.3) — (0.1) — Recognition of plans previously accounted for as defined contribution plans — 6.1 — — — — Curtailment gains — — — (0.1) — (0.2) Foreign exchange and other (0.9) (1.8) — — — — Projected benefit obligation - end of year $ 50.0 $ 47.3 $ 5.3 $ 10.7 $ 4.6 $ 4.0 |
Schedule of change in plan assets and amounts recognized in consolidated and combined balance sheets | Foreign Pension Plans Domestic Pension Plan Domestic Postretirement Plan 2019 2018 2019 2018 2019 2018 Change in plan assets: Fair value of plan assets - beginning of year $ 6.1 $ 0.7 $ — $ — $ — $ — Actual return on plan assets 0.3 — — — — — Contributions (employer and employee) 0.6 0.3 — — — — Benefits paid (0.3) (0.3) — — — — Recognition of plans previously accounted for as defined contribution plans — 5.5 — — — — Foreign exchange and other (0.1) (0.1) — — — — Fair value of plan assets - end of year $ 6.6 $ 6.1 $ — $ — $ — $ — Funded status at year-end (43.4) (41.2) (5.3) (10.7) (4.6) (4.0) Amounts recognized in the consolidated balance sheets consist of: Accrued expenses (2.0) (2.0) — (6.2) (0.1) (0.1) Other long-term liabilities (41.4) (39.2) (5.3) (4.5) (4.5) (3.9) Net amount recognized $ (43.4) $ (41.2) $ (5.3) $ (10.7) $ (4.6) $ (4.0) Amount recognized in accumulated other comprehensive loss (pre-tax) consists of net prior service costs $ 0.1 $ 0.1 $ — $ — $ — $ — |
Schedule of net periodic pension benefit expense components | Net periodic pension benefit expense (income) for our foreign and domestic pension plans and domestic postretirement plan included the following components: Year ended December 31, (1) Foreign Pension Plans Domestic Pension Plan Domestic Postretirement Plan 2019 2018 2017 2019 2018 2017 2019 2018 2017 Service cost (2) $ 0.8 $ 0.6 $ 0.4 $ — $ 1.0 $ 0.7 $ 0.1 $ 0.1 $ 0.1 Interest cost 0.7 0.7 0.8 0.2 0.3 0.3 0.2 0.2 0.1 Expected return on plan assets (0.2) (0.1) (0.1) — — — — — — Curtailment gains (3) — — (1.1) — (0.1) — — (0.2) — Recognized net actuarial losses (gains) (4) 4.4 (1.3) (1.6) 0.7 (0.3) 0.5 0.4 (0.4) 0.2 Total net periodic pension/postretirement benefit expense (income) $ 5.7 $ (0.1) $ (1.6) $ 0.9 $ 0.9 $ 1.5 $ 0.7 $ (0.3) $ 0.4 (1) Service cost is classified in “Selling, general and administrative” expense and all other components of net periodic pension and postretirement expense (income) are classified in “Other income (expense), net” in our accompanying consolidated statements of operations for each year presented. (2) Service cost in 2018 of the domestic pension plan includes $0.2 related to the accelerated vesting of a year of service credit related to the resignation of a former participant in the plan during the fourth quarter of 2018. (3) Curtailment gains in 2018 of the domestic pension and postretirement plans are related to the resignation during the fourth quarter of 2018 of a former participant in those plans. Curtailment gain in 2017 of the foreign pension plans is related to the cessation of accrual of future benefits by participants in a defined benefit pension plan in the Netherlands during the first quarter. The accumulated obligations for future pension payments to participants in this plan were also transferred to an insurance company at that time. Under the agreement, the insurance company irrevocably assumed the obligation to make future pension payments to the approximately 60 participants of the plan. (4) Consists of reported actuarial losses (gains) and the difference between actual and expected returns on plan assets. For 2019, the amount related to the domestic pension plan also includes a $0.2 charge related to the effects of a partial settlement and remeasurement of that plan, resulting from the lump sum payment of a former officer’s pension obligation during the year. For 2018, the amount related to foreign pension plans also includes a cumulative charge of $0.6 related to a change in the accounting for certain foreign benefit plans from defined contribution plans to defined benefit plans. These plans include approximately 50 active participants. |
Schedule of actuarial assumptions used | Actuarial assumptions used in accounting for our foreign pension plans and domestic nonqualified pension plan, were as follows: Year ended December 31, Foreign Pension Plans Domestic Pension Plan 2019 2018 2017 2019 2018 2017 Weighted-average actuarial assumptions used in determining net periodic pension expense: Discount rate 1.52 % 1.51 % 1.54 % 4.11 % 3.49 % 3.82 % Rate of increase in compensation levels 2.71 % 2.50 % 2.68 % N/A 2.50 % 2.50 % Expected long-term rate of return on assets 3.37 % 1.00 % 1.82 % N/A N/A N/A Weighted-average actuarial assumptions used in determining year-end benefit obligations: Discount rate 0.76 % 1.52 % 1.51 % 2.92 % 4.11 % 3.49 % Rate of increase in compensation levels 2.72 % 2.71 % 2.50 % N/A N/A 2.50 % Actuarial assumptions used in accounting for our domestic postretirement plan were as follows: Year ended December 31, 2019 2018 2017 Assumed health care cost trend rates: Health care cost trend rate for next year 6.75 % 7.00 % 7.25 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 5.00 % 5.00 % 5.00 % Year that the rate reaches the ultimate trend rate 2027 2027 2027 Discount rate used in determining net periodic postretirement benefit expense 4.55 % 3.79 % 4.32 % Discount rate used in determining year-end postretirement benefit obligation 3.72 % 4.55 % 3.79 % |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of income before income taxes and the provision for (benefit from) income taxes | Income (loss) before income taxes and the provision for (benefit from) income taxes consisted of the following: Year ended December 31, 2019 2018 2017 Income (loss) before income taxes: United States $ 78.8 $ 97.3 $ 95.8 Foreign 6.7 (25.5) (59.2) $ 85.5 $ 71.8 $ 36.6 Provision for (benefit from) income taxes: Current: United States $ (18.1) $ 33.4 $ 23.5 Foreign 35.6 18.5 9.9 Total current 17.5 51.9 33.4 Deferred and other: United States 6.4 0.3 (30.3) Foreign 5.0 9.1 (0.5) Total deferred and other 11.4 9.4 (30.8) Total provision $ 28.9 $ 61.3 $ 2.6 |
Reconciliation of income tax computed at the U.S. federal statutory tax rate to effective income tax rate | The reconciliation of income tax computed at the U.S. federal statutory tax rate to our effective income tax rate was as follows: Year ended December 31, 2019 2018 2017 Tax at U.S. federal statutory rate 21.0 % 21.0 % 35.0 % State and local taxes, net of U.S. federal benefit 1.6 2.5 1.8 U.S. credits and exemptions (9.3) (5.0) (13.6) Tax rate differential on foreign earnings (1.7) 18.4 15.2 Adjustments to uncertain tax positions (0.6) 0.2 (11.7) Changes in valuation allowance 19.9 15.4 25.4 Tax on repatriation of foreign earnings (7.0) 30.6 148.8 U.S. federal rate change — 0.3 (194.9) Stock compensation (0.1) 0.2 3.6 Tax on transfer to non-U.S. affiliates 7.0 — — Other 3.0 1.8 (2.5) 33.8 % 85.4 % 7.1 % |
Schedule of significant components of deferred tax assets and liabilities | Significant components of our deferred tax assets and liabilities were as follows: As of December 31, 2019 2018 Deferred tax assets: Net operating loss and credit carryforwards $ 378.7 $ 338.3 Pension, other postretirement and postemployment benefits 8.9 9.1 Payroll and compensation 11.9 13.5 Working capital accruals 10.2 10.1 Accelerated depreciation 3.7 0.1 Other 53.1 44.3 Total deferred tax assets 466.5 415.4 Valuation allowance (152.1) (82.5) Net deferred tax assets 314.4 332.9 Deferred tax liabilities: Intangible assets recorded in acquisitions 33.4 39.4 Basis difference in affiliates 208.8 266.8 Other 6.9 4.1 Total deferred tax liabilities 249.1 310.3 $ 65.3 $ 22.6 |
Schedule of changes in unrecognized tax benefits | The aggregate changes in the balance of unrecognized tax benefits for the years ended December 31, 2019, 2018 and 2017 were as follows: Year ended December 31, 2019 2018 2017 Unrecognized tax benefit - beginning of year $ 5.3 $ 5.6 $ 13.9 Gross increases - tax positions in prior period 15.9 1.2 — Gross decreases - tax positions in prior period (0.8) (0.4) (2.3) Gross increases - tax positions in current period — 0.2 0.4 Settlements — — — Lapse of statute of limitations (1.7) (1.3) (6.4) Change due to foreign currency exchange rates — — — Unrecognized tax benefit - end of year $ 18.7 $ 5.3 $ 5.6 |
INDEBTEDNESS (Tables)
INDEBTEDNESS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Summary of debt | Debt at December 31, 2019 and 2018 was comprised of the following: December 31, 2019 2018 Term loan, due in June 2022 $ 100.0 $ — Former term loan (1) — 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) 21.3 33.1 Less: deferred financing fees (3) (6.8) (8.0) Total debt 714.5 765.1 Less: short-term debt 20.7 26.0 Less: current maturities of long-term debt 0.1 20.8 Total long-term debt $ 693.7 $ 718.3 (1) This formerly outstanding term loan was fully repaid during the second quarter of 2019. See further discussion under “Senior Credit Facilities.” (2) Primarily includes finance lease obligations (previously “capital lease obligations” in 2018 under prior accounting guidance) of $0.6 and $7.2 and balances under a purchase card program of $20.4 and $23.0 as of December 31, 2019 and 2018, respectively. The purchase card program allows for payment beyond the normal 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 Notes 3 and 7 for further discussion regarding our adoption of a new lease accounting standard during the first quarter of 2019 and the impact of such adoption on our capital lease obligations. (3) Deferred financing fees were comprised of fees related to the term loans and senior notes. As described further below under “Senior Credit Facilities,” we amended and restated our senior credit facilities in June 2019. In connection with this amendment, we recognized $1.0 of expense, classified as a component of “Interest expense, net” in our accompanying consolidated statement of operations during the year ended December 31, 2019, related to the write-off of deferred financing fees resulting from the extinguishment of the term loan and other facilities of our former senior credit facility. |
Schedule of per annum fees and interest rate margins applicable to Eurodollar and alternate base rate loans | The per annum fees charged and the interest rate margins applicable to Eurodollar rate and alternate base rate loans are as follows: Consolidated Leverage Ratio Domestic Revolving Commitment Fee Global Revolving Commitment Fee Financial Letter of Credit Fee FCI Commitment Fee FCI Fee and Non-Financial Letter of Credit Fee Eurodollar Rate Loans ABR Loans Greater than or equal to 3.50 to 1.0 0.300% 0.300% 2.000% 0.300% 1.200% 2.000% 1.000% Between 3.50 to 1.0 and 2.50 to 1.0 0.275% 0.275% 1.750% 0.275% 1.050% 1.750% 0.750% Between 2.50 to 1.0 and 1.50 to 1.0 0.250% 0.250% 1.500% 0.250% 0.900% 1.500% 0.500% Less than 1.50 to 1.0 0.225% 0.225% 1.250% 0.225% 0.750% 1.250% 0.250% |
EQUITY AND STOCK-BASED COMPEN_2
EQUITY AND STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of weighted average shares outstanding used in computation of basic and diluted income per share | The following table sets forth the number of weighted-average shares outstanding used in the computation of basic and diluted income (loss) per share: Year ended December 31, 2019 2018 2017 Weighted-average shares outstanding, basic 42.465 42.197 41.799 Dilutive effect of share-based awards 0.221 0.436 0.384 Weighted-average shares outstanding, dilutive (1) 42.686 42.633 42.183 (1) For the years ended December 31, 2019 and 2018, 0.119 and 0.041, respectively, of unvested restricted stock shares/units were not included in the computation of diluted income per share because required market thresholds for vesting (as discussed below) were not met. For the years ended December 31, 2019, 2018 and 2017, 0.138, 0.223 and 0.202, respectively, of unvested restricted stock shares/units were not included in the computation of diluted income per share because required internal performance thresholds for vesting (as discussed below) were not met. For the years ended December 31, 2019, 2018 and 2017, 0.342, 0.342 and 0.358, respectively, of stock options were not included in the computation of diluted income per share because their exercise price was greater than the average market price of common shares. |
Schedule of compensation expense related to share-based programs recognized in selling, general and administrative expense | For the years ended December 31, 2019, 2018 and 2017, we recognized compensation expense related to share-based programs in “Selling, general and administrative” expense in the accompanying consolidated statements of operations as follows: Year ended December 31, 2019 2018 2017 Stock-based compensation expense - continuing and discontinued operations $ 13.7 $ 15.7 $ 15.9 Less: stock-based compensation expense recognized in discontinued operations 1.2 1.6 1.3 Stock-based compensation expense recognized in continuing operations 12.5 14.1 14.6 Income tax benefit (2.9) (3.4) (5.2) Stock-based compensation expense, net of income tax benefit $ 9.6 $ 10.7 $ 9.4 |
Schedule of assumptions used to determine fair value of awards granted | The following assumptions were used in determining the fair value of the awards granted on the dates 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 % March 6, 2018: SPX FLOW 42.0 % — % 2.36 % 0.1216 0.4193 0.6928 Composite Group 27.9 % n/a 2.36 % January 13, 2017: SPX FLOW 39.4 % — % 1.50 % 0.1848 0.3830 0.5057 Composite Group 28.6 % n/a 1.50 % In 2019, annual expected stock price volatility was based on the weighted average of SPX FLOW’s historical volatility as of the grant date. In 2018 and 2017, as SPX FLOW shares had been traded only since the Spin-Off in September 2015 (i.e., with less historical performance than the generally three |
Summary of restricted stock share and restricted stock unit activity | The following table summarizes the unvested restricted stock share and restricted stock unit activity from December 31, 2016 through December 31, 2019: Unvested Restricted Stock Shares and Restricted Stock Units Weighted-Average Grant-Date Fair Value Per Share Outstanding at December 31, 2016 1.275 $37.89 Granted 0.486 35.18 Vested (0.358) 42.05 Forfeited and other (0.271) 49.35 Outstanding at December 31, 2017 1.132 32.65 Granted 0.404 48.63 Vested (0.312) 39.01 Forfeited and other (0.048) 33.88 Outstanding at December 31, 2018 1.176 36.40 Granted 0.546 34.51 Vested (0.462) 32.95 Forfeited and other (0.261) 31.51 Outstanding at December 31, 2019 0.999 38.24 |
Schedule of assumptions used to estimate fair value of each option grant | The fair value of each former Parent option grant was estimated using the Black-Scholes option-pricing model with the following assumptions: Annual expected SPX Corporation stock price volatility 36.53 % Annual expected SPX Corporation dividend yield 1.75 % Risk-free interest rate 1.97 % Expected life of SPX Corporation stock option (in years) 6.0 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 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) | The table below presents the changes in our investment in the equity security, measured at net asset value using a practical expedient to fair value guidance, for the years ended December 31, 2019 and 2018, respectively, including the increase in net asset value recorded to “Other income (expense), net.” As noted above, this investment was recognized at its historical cost (of $0.6) until the fourth quarter of 2018. Year ended December 31, 2019 2018 Balance at beginning of year $ 16.6 $ 0.6 Impact of conversion from historical cost to fair value — 16.0 Increase in net asset value recorded to earnings 7.8 — Proceeds received from partial distribution of investee (2.6) — Balance at end of year $ 21.8 $ 16.6 |
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/capital leases and deferred financing fees) not measured at fair value on a recurring basis as of December 31, 2019 and 2018 were as follows: December 31, 2019 December 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Term loan, due in June 2022 (1) $ 100.0 $ 100.0 $ — $ — Former term loan (1) — — 140.0 140.0 5.625% senior notes (1) 300.0 312.0 300.0 283.5 5.875% senior notes (1) 300.0 316.5 300.0 279.4 Other indebtedness 20.7 20.7 25.9 25.9 (1) Carrying amount reflected herein excludes related deferred financing fees. |
QUARTERLY RESULTS (UNAUDITED) (
QUARTERLY RESULTS (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly results | First (1)(2) Second (2) Third (2) Fourth (1)(2) 2019 2018 2019 2018 2019 2018 2019 2018 Revenues $ 373.4 $ 368.9 $ 385.4 $ 406.5 $ 383.5 $ 406.7 $ 364.3 $ 411.8 Gross profit 123.4 118.4 130.6 135.8 134.6 131.8 131.8 127.2 Income from continuing operations, net of tax (3) 15.0 8.8 11.3 13.5 17.1 24.8 13.2 (36.6) Income (loss) from discontinued operations, net of tax (4) 5.1 6.5 50.9 9.9 (47.7) 7.7 (158.0) 10.1 Net income (loss) (3)(4) 20.1 15.3 62.2 23.4 (30.6) 32.5 (144.8) (26.5) Less: Net income (loss) attributable to noncontrolling interests 0.6 (0.2) (0.4) 0.5 1.0 (0.2) 0.8 0.6 Net income (loss) attributable to SPX FLOW, Inc. $ 19.5 $ 15.5 $ 62.6 $ 22.9 $ (31.6) $ 32.7 $ (145.6) $ (27.1) Basic income (loss) per share of common stock from continuing operations $ 0.35 $ 0.21 $ 0.26 $ 0.31 $ 0.38 $ 0.58 $ 0.30 $ (0.87) Basic income (loss) per share of common stock from discontinued operations 0.11 0.16 1.21 0.23 (1.13) 0.19 (3.72) 0.23 Basic income (loss) per share of common stock 0.46 0.37 1.48 0.54 (0.74) 0.77 (3.42) (0.64) Diluted income (loss) per share of common stock from continuing operations 0.35 0.20 0.26 0.31 0.38 0.58 0.30 (0.87) Diluted income (loss) per share of common stock from discontinued operations 0.11 0.16 1.21 0.23 (1.12) 0.19 (3.69) 0.23 Diluted income (loss) per share of common stock 0.46 0.36 1.47 0.54 (0.74) 0.77 (3.40) (0.64) (1) 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 were March 30, June 29, and September 28, compared to the respective March 31, June 30, and September 29, 2018 dates. This practice only affects the quarterly reporting periods and not the annual reporting period. We had one less day in the first quarter of 2019 and one more day in the fourth quarter of 2019 than in the respective 2018 periods. (2) During the fourth quarter of 2019 and based on a refinement of the definition of the business operations and legal entities to be included in the Disposal Group that resulted from execution of the Sale Agreement, we have reclassified certain net foreign currency losses of a legal entity based in Angola, previously included in the results of discontinued operations in prior quarterly periods, to continuing operations, as that legal entity is not subject to sale to the Buyer. (3) During the fourth quarter of 2019, the income tax provision was impacted by an income tax charge of $6.0 resulting from the outbound transfer of an affiliate to non-U.S. entities offset by income tax benefits of (i) $2.0 resulting from the timing of losses occurring in certain jurisdictions where the tax benefit of those losses is not expected to be realized and (ii) $3.9 resulting from the net impact of the cancellation of certain intercompany indebtedness. During the third quarter of 2019, we recorded a pre-tax asset impairment charge of $10.8 that resulted from management’s decision to market a corporate asset for sale. That asset, which had an estimated fair value of $4.0, was marketed for sale beginning in the third quarter of 2019, and was subsequently sold during the fourth quarter of 2019 with no further impact to the Company’s results of operations. During the first quarter of 2019, we recognized pre-tax income of $6.2 related to an increase in the net asset value of an investment in an equity security. During the fourth quarter of 2018, we recorded pre-tax asset impairment charges of $14.2, related to the technology assets, tangible long-lived assets and trademarks of a business within our Food and Beverage reportable segment, and restructuring and other related pre-tax charges of $3.5 related to the rationalization of this business. No tax benefit resulted from these charges as we believe that it is more likely than not that we may not realize the benefit of the deferred tax assets associated with these charges. During the fourth quarter of 2018, the income tax provision was impacted by income tax charges of (i) $19.6 for adjustments to the deemed repatriation tax, (ii) $9.1 resulting from a reduction of foreign tax credits available to the Company arising from distributions of income taxed under the transition tax provisions of the Tax Act and (iii) $7.7 resulting from losses occurring in certain jurisdictions where the tax benefit of those losses is not expected to be realized. During the first quarter of 2018, the income tax provision was impacted by, among other items, 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. (4) During the fourth and third quarters of 2019, we recorded pre-tax charges of $149.0 and $52.0, respectively, to reduce the carrying value of the net assets of the Company’s discontinued operations, including relevant foreign currency translation adjustment balances, to the estimated proceeds expected to be received upon its disposition based on terms of the Sale Agreement executed during the fourth quarter of 2019, including consideration of net working capital, cash and debt of the discontinued operations business as of December 31, 2019, and in respect of certain deductions, each as defined in the Sale Agreement. During the third quarter of 2019, we recorded a pre-tax charge of $17.0 to the results of discontinued operations related to the settlement of a previous payment demand from a customer related to a project of the discontinued operations business. This settlement was paid by the Company on September 30, 2019. During the third and second quarters of 2019, the income tax benefits related to discontinued operations were impacted by benefits of $7.5 and $40.6, respectively, resulting from basis differences that will be realized through the disposition of the held-for-sale assets. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Foreign Currency Translation and Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Forward contracts | Other income (expense), net | |||
Derivative [Line Items] | |||
Net gains (losses) related to foreign currency gains (losses) | $ (3.1) | $ (7.4) | $ (2.3) |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Accounting Policies [Abstract] | |
Revenues recognized under the percentage-of-completion method | $ 234.8 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Research and Development Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Selling, general and administrative expenses | |||
Schedule Of Research And Development Expense [Line Items] | |||
Research and development activities related expenditures | $ 18.5 | $ 18.2 | $ 17.3 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense, including amortization of capital leases | $ 26.9 | $ 28.5 | $ 29.9 |
Buildings | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives | 40 years | ||
Machinery and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives | 3 years | ||
Machinery and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives | 15 years |
USE OF ESTIMATES - Accounts Rec
USE OF ESTIMATES - Accounts Receivable Allowances (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance at beginning of year | $ 9 | $ 11.8 | $ 11.2 |
Allowances provided | 4.8 | 1.9 | 3.4 |
Write-offs, net of recoveries, credits issued and other | (3.5) | (4.7) | (2.8) |
Balance at end of year | $ 10.3 | $ 9 | $ 11.8 |
USE OF ESTIMATES - Accrued Expe
USE OF ESTIMATES - Accrued Expenses (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Employee benefits | $ 57.7 | $ 64 | ||
Current portion of operating lease liabilities | 15.4 | 0 | ||
Warranty | 7 | 6.7 | $ 7 | |
Restructuring | 7.6 | 7.1 | ||
Other | 74.3 | 71.2 | ||
Total | $ 162 | $ 166 | $ 149 |
USE OF ESTIMATES - Warranty (De
USE OF ESTIMATES - Warranty (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Analysis of product warranty accrual | |||
Balance at beginning of year | $ 7 | $ 7.4 | $ 7.1 |
Provisions | 6.9 | 7.7 | 7.7 |
Usage | (6.6) | (7.8) | (7.8) |
Currency translation adjustment | 0 | (0.3) | 0.4 |
Balance at end of year | 7.3 | 7 | 7.4 |
Less: Current portion of warranty | 7 | 6.7 | 7 |
Non-current portion of warranty | $ 0.3 | $ 0.3 | $ 0.4 |
NEW ACCOUNTING PRONOUNCEMENTS -
NEW ACCOUNTING PRONOUNCEMENTS - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative reduction of accumulated defecit | $ (369.2) | $ (274.1) | $ (265.6) |
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative reduction of accumulated defecit | (8.5) | ||
Build-to-suit Lease | Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative reduction of accumulated defecit | $ 8.5 |
NEW ACCOUNTING PRONOUNCEMENTS_2
NEW ACCOUNTING PRONOUNCEMENTS - Cumulative Effect of the Changes Made to Condensed Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Assets [Abstract] | |||
Other current assets | $ 32.2 | $ 32.4 | $ 33.3 |
Assets of discontinued operations - current | 464 | 244.1 | 244.4 |
Building and leasehold improvements | 168.3 | 175.5 | |
Accumulated depreciation | (284.2) | (284.9) | |
Other assets | 180.4 | 165.7 | 111.1 |
Assets of discontinued operations - long-term | 0 | 427 | 412.4 |
Liabilities [Abstract] | |||
Accrued expenses | 162 | 166 | 149 |
Current maturities of long-term debt | 20.1 | 20.8 | |
Liabilities of discontinued operations - current | 220.5 | 137.5 | 133.4 |
Long-term debt | 712.2 | 718.3 | |
Other long-term liabilities | 115 | 113 | 67.5 |
Liabilities of discontinued operations - long-term | 0 | 70.8 | 60.6 |
Equity [Abstract] | |||
Accumulated deficit | $ (369.2) | (274.1) | $ (265.6) |
Operating Lease Term (in years) | 6 years | ||
Minimum | |||
Equity [Abstract] | |||
Operating Lease Term (in years) | 1 year | ||
Maximum | |||
Equity [Abstract] | |||
Operating Lease Term (in years) | 15 years | ||
Accounting Standards Update 2016-02 | |||
Assets [Abstract] | |||
Other current assets | (0.9) | ||
Assets of discontinued operations - current | (0.3) | ||
Building and leasehold improvements | (7.2) | ||
Accumulated depreciation | 0.7 | ||
Other assets | 54.6 | ||
Assets of discontinued operations - long-term | 14.6 | ||
Liabilities [Abstract] | |||
Accrued expenses | 17 | ||
Current maturities of long-term debt | (0.7) | ||
Liabilities of discontinued operations - current | 4.1 | ||
Long-term debt | (6.1) | ||
Other long-term liabilities | 45.5 | ||
Liabilities of discontinued operations - long-term | 10.2 | ||
Equity [Abstract] | |||
Accumulated deficit | (8.5) | ||
Accounting Standards Update 2016-02 | Recognition of Operating Leases | |||
Assets [Abstract] | |||
Other current assets | (0.9) | ||
Assets of discontinued operations - current | (0.3) | ||
Building and leasehold improvements | 0 | ||
Accumulated depreciation | 0 | ||
Other assets | 57.2 | ||
Assets of discontinued operations - long-term | 14.6 | ||
Liabilities [Abstract] | |||
Accrued expenses | 16.1 | ||
Current maturities of long-term debt | 0 | ||
Liabilities of discontinued operations - current | 4.1 | ||
Long-term debt | 0 | ||
Other long-term liabilities | 40.2 | ||
Liabilities of discontinued operations - long-term | 10.2 | ||
Equity [Abstract] | |||
Accumulated deficit | 0 | ||
Accounting Standards Update 2016-02 | Reclassification of Capital Lease to Operating Lease | |||
Assets [Abstract] | |||
Other current assets | 0 | ||
Assets of discontinued operations - current | 0 | ||
Building and leasehold improvements | (7.2) | ||
Accumulated depreciation | 0.7 | ||
Other assets | 5.8 | ||
Assets of discontinued operations - long-term | 0 | ||
Liabilities [Abstract] | |||
Accrued expenses | 0.9 | ||
Current maturities of long-term debt | (0.7) | ||
Liabilities of discontinued operations - current | 0 | ||
Long-term debt | (6.1) | ||
Other long-term liabilities | 5.3 | ||
Liabilities of discontinued operations - long-term | 0 | ||
Equity [Abstract] | |||
Accumulated deficit | (0.1) | ||
Accounting Standards Update 2016-02 | Impairment of Operating Lease ROU Asset | |||
Assets [Abstract] | |||
Other current assets | 0 | ||
Assets of discontinued operations - current | 0 | ||
Building and leasehold improvements | 0 | ||
Accumulated depreciation | 0 | ||
Other assets | (8.4) | ||
Assets of discontinued operations - long-term | 0 | ||
Liabilities [Abstract] | |||
Accrued expenses | 0 | ||
Current maturities of long-term debt | 0 | ||
Liabilities of discontinued operations - current | 0 | ||
Long-term debt | 0 | ||
Other long-term liabilities | 0 | ||
Liabilities of discontinued operations - long-term | 0 | ||
Equity [Abstract] | |||
Accumulated deficit | $ (8.4) |
Discontinued Operations and D_2
Discontinued Operations and Disposal Groups (Details) € in Millions, $ in Millions | Nov. 24, 2019USD ($) | Dec. 31, 2019USD ($) | Sep. 28, 2019USD ($) | Jun. 29, 2019USD ($) | Mar. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 29, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2019USD ($) |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||||||||||||||
Impairment charge | $ 149 | $ 52 | ||||||||||||
Unfavorable contract liability | 5 | $ 5 | ||||||||||||
Accumulated other comprehensive loss | (426.5) | $ (430.7) | (426.5) | $ (430.7) | ||||||||||
Goodwill allocated to industrial reportable segment | 70 | $ 70.6 | ||||||||||||
Charge related to procurement agreement | 5 | 0 | 0 | |||||||||||
Impairment charge | 149 | 52 | ||||||||||||
Asset impairment charges | 0 | 0.2 | 0 | |||||||||||
Income tax benefit (provision) | (30.2) | |||||||||||||
Income (loss) from discontinued operations, net of tax | (158) | $ (47.7) | $ 50.9 | $ 5.1 | 10.1 | $ 7.7 | $ 9.9 | $ 6.5 | (149.7) | 34.2 | 12.8 | |||
Income (loss) from discontinued operations, net of tax and noncontrolling interests | (150) | 34.5 | 13.4 | |||||||||||
Tax expense (benefit) recognized on pre-tax charges | (9.7) | |||||||||||||
Expense resulting from losses occurring in certain tax jurisdictions | 0.8 | |||||||||||||
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract] | ||||||||||||||
Cash and equivalents | $ 34.4 | |||||||||||||
Total current assets | 464 | 244.4 | 464 | 244.4 | $ 244.1 | |||||||||
Total long-term assets | 0 | 412.4 | 0 | 412.4 | 427 | |||||||||
Total current liabilities | 220.5 | 133.4 | 220.5 | 133.4 | 137.5 | |||||||||
Total current liabilities | 0 | 60.6 | $ 0 | $ 60.6 | $ 70.8 | |||||||||
Effective income tax rate | 33.80% | 33.80% | 85.40% | 7.10% | ||||||||||
Other assets attributable to operating lease right-of-use asset | 13.1 | $ 13.1 | ||||||||||||
Accrued expenses attributable to operating lease liability | 4.2 | 4.2 | ||||||||||||
Other long-term liabilities attributable to long-term lease liabilities | 9.2 | 9.2 | ||||||||||||
Net Cash Provided by (Used in) Discontinued Operations [Abstract] | ||||||||||||||
Impairment charge, discontinued operations | 201 | $ 0 | $ 0 | |||||||||||
Depreciation and amortization | 7.8 | 17 | 17.5 | |||||||||||
Impairment of long-lived assets | 0 | 0.2 | 0 | |||||||||||
Capital expenditures | 7.5 | 6.3 | 3.2 | |||||||||||
Discontinued Operations, Disposed of by Sale | ||||||||||||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||||||||||||||
Impairment charge | 201 | 0 | 0 | |||||||||||
Consideration receivable for discontinued operation | $ 475 | |||||||||||||
Foreign currency translation adjustment | $ 155 | |||||||||||||
Interest expense | 11.7 | 13.1 | 16.3 | |||||||||||
Revenues | 489.7 | 496.2 | 468.3 | |||||||||||
Costs of products sold | 353.2 | 353 | 339.4 | |||||||||||
Gross profit | 136.5 | 143.2 | 128.9 | |||||||||||
Selling, general and administrative | 100.2 | 81.9 | 83.4 | |||||||||||
Intangible amortization | 1.9 | 3.9 | 3.8 | |||||||||||
Impairment charge | 201 | 0 | 0 | |||||||||||
Restructuring and other related charges | 0 | 0.8 | 1.5 | |||||||||||
Operating income (loss) | (171.6) | 56.4 | 40.2 | |||||||||||
Other income (expense), net | (1.6) | 0.4 | (2.6) | |||||||||||
Interest expense, net | (11.8) | (12.8) | (16.3) | |||||||||||
Income (loss) from discontinued operations before income taxes | (185) | 44 | 21.3 | |||||||||||
Income tax benefit (provision) | 35.3 | (9.8) | (8.5) | |||||||||||
Income (loss) from discontinued operations, net of tax | (149.7) | 34.2 | 12.8 | |||||||||||
Less: Income (loss) attributable to noncontrolling interests | 0.3 | (0.3) | (0.6) | |||||||||||
Income (loss) from discontinued operations, net of tax and noncontrolling interests | (150) | 34.5 | $ 13.4 | |||||||||||
Settlement of a demand for a discontinued business | 17 | |||||||||||||
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract] | ||||||||||||||
Cash and equivalents | 3.1 | 16.3 | 3.1 | 16.3 | ||||||||||
Accounts receivable, net | 99.4 | 97.3 | 99.4 | 97.3 | ||||||||||
Contract assets | 43 | 35.5 | 43 | 35.5 | ||||||||||
Inventories, net | 72.8 | 84.3 | 72.8 | 84.3 | ||||||||||
Other current assets | 12.9 | 11 | 12.9 | 11 | ||||||||||
Total current assets | 231.2 | 244.4 | 231.2 | 244.4 | ||||||||||
Property, plant and equipment, net | 87.4 | 84.2 | 87.4 | 84.2 | ||||||||||
Goodwill | 194.9 | 193.9 | 194.9 | 193.9 | ||||||||||
Intangibles, net | 92.3 | 93.1 | 92.3 | 93.1 | ||||||||||
Other Assets | 59.2 | 41.2 | 59.2 | 41.2 | ||||||||||
Total long-term assets | 433.8 | 412.4 | 433.8 | 412.4 | ||||||||||
Total assets, before valuation allowance | 665 | 656.8 | 665 | 656.8 | ||||||||||
Less: valuation allowance | (201) | 0 | (201) | 0 | ||||||||||
Total assets, net of valuation allowance | 464 | 656.8 | 464 | 656.8 | ||||||||||
Accounts payable | 46.6 | 46.7 | 46.6 | 46.7 | ||||||||||
Contract liabilities | 43.6 | 38.5 | 43.6 | 38.5 | ||||||||||
Accrued expenses | 52.6 | 46.3 | 52.6 | 46.3 | ||||||||||
Income taxes payable | 1.6 | 1.5 | 1.6 | 1.5 | ||||||||||
Current Maturities of Long-Term Debt | 0.5 | 0.4 | 0.5 | 0.4 | ||||||||||
Total current liabilities | 144.9 | 133.4 | 144.9 | 133.4 | ||||||||||
Long-term debt | 3.6 | 3.8 | 3.6 | 3.8 | ||||||||||
Deferred and other income taxes | 13.6 | 12.1 | 13.6 | 12.1 | ||||||||||
Other long-term liabilities | 58.4 | 44.7 | 58.4 | 44.7 | ||||||||||
Total current liabilities | 75.6 | 60.6 | 75.6 | 60.6 | ||||||||||
Total Liabilities | $ 220.5 | $ 194 | $ 220.5 | $ 194 | ||||||||||
Effective income tax rate | 19.10% | 19.10% | 22.30% | 39.90% | ||||||||||
Dehydration-related products | Minimum | ||||||||||||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||||||||||||||
Long-term purchase commitment, annual amount | € | € 7 | |||||||||||||
Dehydration-related products | Maximum | ||||||||||||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||||||||||||||
Long-term purchase commitment, annual amount | € | € 8 |
INFORMATION ON REPORTABLE SEG_3
INFORMATION ON REPORTABLE SEGMENTS, CORPORATE EXPENSE AND OTHER - Narratives (Details) | 12 Months Ended |
Dec. 31, 2019countrysegment | |
Segment Reporting [Abstract] | |
Number of countries in which entity operates (more than) (in countries) | 30 |
Number of countries in which entity sells its products and services (more than) (in countries) | 140 |
Number of reportable segments (in segments) | segment | 2 |
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 | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues: | |||||||||||
Total revenues | $ 364.3 | $ 383.5 | $ 385.4 | $ 373.4 | $ 411.8 | $ 406.7 | $ 406.5 | $ 368.9 | $ 1,506.6 | $ 1,593.9 | $ 1,483.2 |
Income: | |||||||||||
Operating Income (Loss) | 115.7 | 112 | 78.9 | ||||||||
Asset impairment charges | 11.2 | 14.4 | 4.9 | ||||||||
Restructuring and other related charges | 9.3 | 7.6 | 12.9 | ||||||||
Capital expenditures | 28.5 | 19.2 | 16.2 | ||||||||
Depreciation and amortization | 38.3 | 41.7 | 43.7 | ||||||||
Identifiable assets | 2,437.4 | 2,551.8 | 2,437.4 | 2,551.8 | |||||||
Total long-lived assets | 410.3 | 362.4 | 410.3 | 362.4 | 379.3 | ||||||
Corporate expense, previously charged to business units reclassified to discontinued operations | 7.1 | 7.5 | 9.4 | ||||||||
United States Plan | |||||||||||
Revenues: | |||||||||||
Total revenues | 544.9 | 531.2 | 503.6 | ||||||||
Income: | |||||||||||
Total long-lived assets | 238 | 219.6 | 238 | 219.6 | 229.6 | ||||||
UNITED KINGDOM | |||||||||||
Revenues: | |||||||||||
Total revenues | 166.3 | 150.8 | 125.7 | ||||||||
Germany | |||||||||||
Revenues: | |||||||||||
Total revenues | 84.1 | 94.1 | 96.2 | ||||||||
United Kingdom | |||||||||||
Revenues: | |||||||||||
Total revenues | 132.7 | 91.2 | 92.5 | ||||||||
Denmark | |||||||||||
Revenues: | |||||||||||
Total revenues | 90.3 | 89.5 | 98 | ||||||||
France | |||||||||||
Revenues: | |||||||||||
Total revenues | 37.5 | 56.8 | 76.7 | ||||||||
Other countries | |||||||||||
Revenues: | |||||||||||
Total revenues | 450.8 | 580.3 | 490.5 | ||||||||
Other | |||||||||||
Income: | |||||||||||
Total long-lived assets | 172.3 | 142.8 | 172.3 | 142.8 | 149.7 | ||||||
Food and Beverage | |||||||||||
Revenues: | |||||||||||
Total revenues | 702.9 | 743.9 | |||||||||
Industrial | |||||||||||
Revenues: | |||||||||||
Total revenues | 803.7 | 850 | |||||||||
Reporting segments | |||||||||||
Revenues: | |||||||||||
Total revenues | 1,506.6 | 1,593.9 | 1,483.2 | ||||||||
Income: | |||||||||||
Operating Income (Loss) | 201 | 191.2 | 163.9 | ||||||||
Capital expenditures | 28.5 | 19.2 | 16.2 | ||||||||
Depreciation and amortization | 38.3 | 41.7 | 43.7 | ||||||||
Identifiable assets | 1,973.4 | 1,895 | 1,973.4 | 1,895 | 1,963.4 | ||||||
Reporting segments | Food and Beverage | |||||||||||
Revenues: | |||||||||||
Total revenues | 702.9 | 743.9 | 715.9 | ||||||||
Income: | |||||||||||
Operating Income (Loss) | 90.5 | 87.7 | 74.9 | ||||||||
Restructuring and other related charges | 3.9 | 5.3 | 8.2 | ||||||||
Capital expenditures | 5.2 | 7.4 | 5.8 | ||||||||
Depreciation and amortization | 14.4 | 16.1 | 17 | ||||||||
Identifiable assets | 895.5 | 889.2 | 895.5 | 889.2 | 924.3 | ||||||
Reporting segments | Industrial | |||||||||||
Revenues: | |||||||||||
Total revenues | 803.7 | 850 | 767.3 | ||||||||
Income: | |||||||||||
Operating Income (Loss) | 110.5 | 103.5 | 89 | ||||||||
Restructuring and other related charges | 3.1 | 2.4 | 4.9 | ||||||||
Capital expenditures | 9.2 | 8.8 | 5.3 | ||||||||
Depreciation and amortization | 15.5 | 16.9 | 17.1 | ||||||||
Identifiable assets | 781.3 | 787.5 | 781.3 | 787.5 | 832.3 | ||||||
Corporate | |||||||||||
Income: | |||||||||||
Corporate expense | 63.9 | 55.5 | 66 | ||||||||
Asset impairment charges | 3.6 | ||||||||||
Restructuring and other related charges | 2.3 | (0.1) | (0.2) | ||||||||
Capital expenditures | 14.1 | 3 | 5.1 | ||||||||
Depreciation and amortization | 8.4 | 8.7 | 9.6 | ||||||||
Identifiable assets | $ 296.6 | $ 218.3 | 296.6 | 218.3 | 206.8 | ||||||
Segment reconciling items | |||||||||||
Income: | |||||||||||
Pension and postretirement service costs | 0.9 | 1.7 | 1.2 | ||||||||
Asset impairment charges | 11.2 | 14.4 | 4.9 | ||||||||
Restructuring and other related charges | $ 9.3 | $ 7.6 | $ 12.9 |
REVENUE FROM CONTRACT WITH CU_2
REVENUE FROM CONTRACT WITH CUSTOMER - Revenues Recognized Over Time (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue from External Customer [Line Items] | |||||||||||
Revenues | $ 364.3 | $ 383.5 | $ 385.4 | $ 373.4 | $ 411.8 | $ 406.7 | $ 406.5 | $ 368.9 | $ 1,506.6 | $ 1,593.9 | $ 1,483.2 |
Food and Beverage | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 702.9 | 743.9 | |||||||||
Industrial | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 803.7 | 850 | |||||||||
Transferred over Time | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 343.7 | 403.3 | |||||||||
Transferred over Time | Food and Beverage | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 282.9 | 309 | |||||||||
Transferred over Time | Industrial | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | $ 60.8 | $ 94.3 |
REVENUE FROM CONTRACT WITH CU_3
REVENUE FROM CONTRACT WITH CUSTOMER - Disaggregated Information About Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 364.3 | $ 383.5 | $ 385.4 | $ 373.4 | $ 411.8 | $ 406.7 | $ 406.5 | $ 368.9 | $ 1,506.6 | $ 1,593.9 | $ 1,483.2 |
Food and Beverage | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 702.9 | 743.9 | |||||||||
Industrial | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 803.7 | 850 | |||||||||
Original Equipment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 994.4 | 1,067.4 | |||||||||
Original Equipment | Food and Beverage | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 453.6 | 491.8 | |||||||||
Original Equipment | Industrial | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 540.8 | 575.6 | |||||||||
Aftermarket | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 512.2 | 526.5 | |||||||||
Aftermarket | Food and Beverage | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 249.3 | 252.1 | |||||||||
Aftermarket | Industrial | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 262.9 | 274.4 | |||||||||
Original Equipment, Highly Engineered Systems | Food and Beverage | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 243.9 | $ 280.9 |
REVENUE FROM CONTRACT WITH CU_4
REVENUE FROM CONTRACT WITH CUSTOMER - Contract Balances (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Change in net contract balance | $ 18.4 | |
Net contract balance | 142.9 | $ 161.3 |
Increase (Decrease) In Contract With Customer, Liability, Current | 20.1 | |
Contract liabilities | (116.3) | (136.4) |
Change in contract assets | (6.5) | |
Contract assets | 27.3 | 33.8 |
Change in contract accounts receivable | (32) | |
Contract accounts receivable | $ 231.9 | $ 263.9 |
REVENUE FROM CONTRACT WITH CU_5
REVENUE FROM CONTRACT WITH CUSTOMER (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue recognized | $ 124 | $ 140 |
Deferred costs, current | 0.4 | 0.4 |
Remaining performance obligation | $ 519.2 | $ 577.5 |
Remaining performance obligation, percentage | 90.00% |
LEASES - Components of Operatin
LEASES - Components of Operating and Finance Lease ROU Asset and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Leases [Line Items] | |||
Finance lease ROU assets | $ 0.9 | ||
Operating lease ROU assets | 48.8 | ||
Current portion of operating lease liabilities | 15.4 | $ 0 | |
Current portion of finance lease liabilities | 0.1 | ||
Long-term finance lease liabilities | 0.5 | ||
Long-term operating lease liabilities | 40.4 | ||
Finance lease assets | 536.2 | ||
Less: accumulated depreciation | (0.4) | ||
Less: accumulated depreciation | $ (284.2) | (284.9) | |
Net book value | 0.5 | ||
Net book value | 251.3 | ||
Current capital lease obligations | 0.8 | ||
Noncurrent capital lease obligations | 6.4 | ||
Property, plant and equipment, net | |||
Leases [Line Items] | |||
Finance lease ROU assets | 0.5 | ||
Buildings | |||
Leases [Line Items] | |||
Finance lease ROU assets | 0.4 | ||
Machinery and equipment | |||
Leases [Line Items] | |||
Finance lease ROU assets | $ 0.5 | ||
Assets under capital lease, buildings | |||
Leases [Line Items] | |||
Finance lease assets | 7.5 | ||
Assets under capital lease, machinery & equipment | |||
Leases [Line Items] | |||
Finance lease assets | 0.3 | ||
Assets under capital lease | |||
Leases [Line Items] | |||
Finance lease assets | 7.8 | ||
Less: accumulated depreciation | (1) | ||
Net book value | $ 6.8 |
LEASES - Components of Lease Ex
LEASES - Components of Lease Expense (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 18.9 |
Short-term lease cost | 2.7 |
Variable lease cost | 0.7 |
Total lease cost | 22.3 |
Finance lease costs | $ 0.1 |
LEASES - Future Lease Payments
LEASES - Future Lease Payments (Details) $ in Millions | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 16.5 |
2021 | 12.1 |
2022 | 8.7 |
2023 | 6.6 |
2024 | 9.3 |
Thereafter | 10.5 |
Total lease payments | 63.7 |
Less: interest | 7.9 |
Present value of lease liabilities | 55.8 |
2020 | 0.2 |
2021 | 0.2 |
2022 | 0.1 |
2023 | 0.1 |
2024 | 0.1 |
Thereafter | 0 |
Total lease payments | 0.7 |
Less: interest | 0.1 |
Present value of lease liabilities | 0.6 |
2020 | 16.7 |
2021 | 12.3 |
2022 | 8.8 |
2023 | 6.7 |
2024 | 9.4 |
Thereafter | 10.5 |
Total lease payments | 64.4 |
Less: interest | 8 |
Present value of lease liabilities | $ 56.4 |
Operating Lease Term (in years) | 6 years |
Finance Lease Term (in years) | 4 years 3 months 18 days |
Operating leases | 4.49% |
Finance leases | 5.32% |
LEASES - Cash Flows and Non-Cas
LEASES - Cash Flows and Non-Cash Activities (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows paid for operating leases | $ 19.3 |
Operating cash flows paid for finance leases | 0 |
Finance Lease, Principal Payments | 0.1 |
Operating lease ROU assets obtained in exchange for new operating lease liabilities | 13.9 |
Finance lease ROU assets obtained in exchange for new finance lease liabilities | $ 0.4 |
LEASES (Details)
LEASES (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Leases [Abstract] | ||
Total operating lease expense | $ 23.6 | $ 23.9 |
RESTRUCTURING AND OTHER RELAT_3
RESTRUCTURING AND OTHER RELATED CHARGES - Narratives (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)employee | Dec. 31, 2018USD ($)employee | Dec. 31, 2017USD ($)employee | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other related charges | $ 9.3 | $ 7.6 | $ 12.9 |
Number of employees terminated (in employees) | employee | 20 | ||
Expected charges to be incurred | $ 0.5 | ||
Asia | |||
Restructuring Cost and Reserve [Line Items] | |||
Costs related to lease cancellation | 0.6 | ||
POLAND | |||
Restructuring Cost and Reserve [Line Items] | |||
Costs related to lease cancellation | 0.8 | ||
Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other related charges | 2.3 | (0.1) | (0.2) |
Food and Beverage | Reporting segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other related charges | $ 3.9 | 5.3 | $ 8.2 |
Severance and other special charges | $ 3.5 | ||
Number of employees terminated (in employees) | employee | 40 | 58 | 91 |
Industrial | Reporting segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other related charges | $ 3.1 | $ 2.4 | $ 4.9 |
Number of employees terminated (in employees) | employee | 70 | 32 | 131 |
RESTRUCTURING AND OTHER RELAT_4
RESTRUCTURING AND OTHER RELATED CHARGES - Summary of Charges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other related charges | $ 9.3 | $ 7.6 | $ 12.9 |
Reporting segments | Food and Beverage | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other related charges | 3.9 | 5.3 | 8.2 |
Reporting segments | Industrial | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other related charges | 3.1 | 2.4 | 4.9 |
Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other related charges | 2.3 | (0.1) | (0.2) |
Employee termination costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other related charges | 9.3 | 6.6 | 10 |
Employee termination costs | Reporting segments | Food and Beverage | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other related charges | 3.9 | 4.4 | 6.6 |
Employee termination costs | Reporting segments | Industrial | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other related charges | 3.1 | 2.3 | 3.6 |
Employee termination costs | Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other related charges | 2.3 | (0.1) | (0.2) |
Facility consolidation costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other related charges | 0 | 1 | 2.9 |
Facility consolidation costs | Reporting segments | Food and Beverage | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other related charges | 0 | 0.9 | 1.6 |
Facility consolidation costs | Reporting segments | Industrial | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other related charges | 0 | 0.1 | 1.3 |
Facility consolidation costs | Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other related charges | $ 0 | $ 0 | $ 0 |
RESTRUCTURING AND OTHER RELAT_5
RESTRUCTURING AND OTHER RELATED CHARGES - Analysis of Restructuring Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Liabilities | |||
Balance at beginning of year | $ 7.1 | $ 10.7 | $ 26.7 |
Restructuring and other related charges | 9.3 | 7.6 | 12.9 |
Utilization — cash | (8.3) | (11.2) | (30.9) |
Currency translation adjustment and other | (0.5) | 0 | 2 |
Balance at end of year | $ 7.6 | $ 7.1 | $ 10.7 |
INVENTORIES, NET (Details)
INVENTORIES, NET (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory, Net [Abstract] | ||
Finished goods | $ 82.5 | $ 79.1 |
Work in process | 47 | 57.3 |
Raw materials and purchased parts | 85.9 | 91.3 |
Total FIFO cost | 215.4 | 227.7 |
Excess of FIFO cost over LIFO inventory value | (7.3) | (7.2) |
Total inventories | $ 208.1 | $ 220.5 |
Domestic inventories, valued using the last-in, first-out method, as a percentage of total inventory | 11.00% | 11.00% |
GOODWILL, OTHER INTANGIBLE AS_3
GOODWILL, OTHER INTANGIBLE ASSETS, AND ASSET IMPAIRMENT CHARGES - Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Changes in the carrying amount of goodwill | |||
Beginning Balance | $ 550.4 | $ 569.5 | |
Impairments | 0 | 0 | |
Foreign Currency Translation and Other | (5.3) | (19.1) | |
Ending Balance | 545.1 | 550.4 | |
Accumulated impairment included in carrying amount of goodwill | 133.6 | 133.6 | $ 134.2 |
Food and Beverage | |||
Changes in the carrying amount of goodwill | |||
Beginning Balance | 261.5 | 271.8 | |
Impairments | 0 | 0 | |
Foreign Currency Translation and Other | (4) | (10.3) | |
Ending Balance | 257.5 | 261.5 | |
Industrial | |||
Changes in the carrying amount of goodwill | |||
Beginning Balance | 288.9 | 297.7 | |
Impairments | 0 | 0 | |
Foreign Currency Translation and Other | (1.3) | (8.8) | |
Ending Balance | $ 287.6 | $ 288.9 |
GOODWILL, OTHER INTANGIBLE AS_4
GOODWILL, OTHER INTANGIBLE ASSETS, AND ASSET IMPAIRMENT CHARGES - Goodwill (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Percentage of fair value in excess of carrying value | 26.00% | |
Percentage of fair value in excess of carrying value | 23.00% |
GOODWILL, OTHER INTANGIBLE AS_5
GOODWILL, OTHER INTANGIBLE ASSETS, AND ASSET IMPAIRMENT CHARGES - Schedule of Identifiable Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 200.1 | $ 201.7 |
Accumulated Amortization | (156.7) | (146.1) |
Net Carrying Value | 43.4 | 55.6 |
Total gross carrying value | 364.8 | 365.3 |
Total net carrying value | 208.1 | 219.2 |
Trademarks with indefinite lives | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Trademarks with indefinite lives | 164.7 | 163.6 |
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 164.7 | 163.6 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 124.7 | 125.8 |
Accumulated Amortization | (97.5) | (90.2) |
Net Carrying Value | 27.2 | 35.6 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 61.7 | 62.1 |
Accumulated Amortization | (46.6) | (43.5) |
Net Carrying Value | 15.1 | 18.6 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 5.6 | 5.7 |
Accumulated Amortization | (4.5) | (4.3) |
Net Carrying Value | 1.1 | 1.4 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 8.1 | 8.1 |
Accumulated Amortization | (8.1) | (8.1) |
Net Carrying Value | $ 0 | $ 0 |
GOODWILL, OTHER INTANGIBLE AS_6
GOODWILL, OTHER INTANGIBLE ASSETS, AND ASSET IMPAIRMENT CHARGES - Other Intangibles, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Impairment charge | $ 9.7 | ||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 11.4 | 13.2 | $ 13.8 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2020 | 10.5 | ||
2021 | 10 | ||
2022 | 7.1 | ||
2023 | 2.9 | ||
2024 | 2.4 | ||
Net carrying value of intangible assets with determinable lives | 43.4 | 55.6 | |
Trademarks with indefinite lives | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Trademarks with indefinite lives | 164.7 | 163.6 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 164.7 | $ 163.6 | |
Food and Beverage | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Trademarks with indefinite lives | 98.3 | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Net carrying value of intangible assets with determinable lives | 27.6 | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 98.3 | ||
Food and Beverage | Trademarks with indefinite lives | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Impairment charge | 1.4 | ||
Food and Beverage | Technology | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Impairment charge | 8.3 | ||
Industrial | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Trademarks with indefinite lives | 66.4 | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Net carrying value of intangible assets with determinable lives | 15.8 | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) | $ 66.4 |
GOODWILL, OTHER INTANGIBLE AS_7
GOODWILL, OTHER INTANGIBLE ASSETS, AND ASSET IMPAIRMENT CHARGES - Tangible Long-Lived Asset Impairment Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Percentage of fair value in excess of carrying value | 23.00% | |||
Impairment charge | $ 9.7 | |||
Impairment charge related to decision to market corporate asset for sale | $ 10.8 | |||
Fair value of asset held for sale | $ 4 | 4 | ||
Impairment of right-of-use asset | $ 0.2 | |||
Tangible asset impairment charges | 4.5 | |||
Asset impairment charges | 11.2 | 14.4 | $ 4.9 | |
Industrial | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Tangible asset impairment charges | $ 0.2 | |||
Reporting segments | Food and Beverage | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Tangible asset impairment charges | $ 4.5 | 0.5 | ||
Reporting segments | Industrial | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Tangible asset impairment charges | 0.8 | |||
Corporate | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Asset impairment charges | $ 3.6 |
EMPLOYEE BENEFIT PLANS - Plan a
EMPLOYEE BENEFIT PLANS - Plan assets (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)transfersshares | Dec. 31, 2018USD ($)transfersshares | Dec. 31, 2017USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Total number of transfers between levels of the fair value hierarchy (in transfers) | transfers | 0 | 0 | |
Total number of shares held by defined benefit pension plan (in shares) | shares | 0 | 0 | |
Assets for Plan Benefits, Defined Benefit Plan | $ 0 | ||
Foreign Plan | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of defined benefit plans' assets | 6,600,000 | $ 6,100,000 | $ 700,000 |
Foreign Plan | Level 3 | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of defined benefit plans' assets | 6,600,000 | 6,100,000 | |
United States Plan | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of defined benefit plans' assets | $ 0 | $ 0 | $ 0 |
EMPLOYEE BENEFIT PLANS - Employ
EMPLOYEE BENEFIT PLANS - Employer Contributions (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Direct benefit payments | $ 2 |
Foreign Plan | Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Direct benefit payments | 6.4 |
Expected employer contributions | 0.5 |
Expected benefit payments | 2.4 |
United States Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected benefit payments | 0.1 |
United States Plan | Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected benefit payments | 0 |
Funded Plan | Foreign Plan | Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Employer contributions | 0.5 |
Unfunded Plan | Foreign Plan | Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Employer contributions | $ 2.1 |
EMPLOYEE BENEFIT PLANS - Estima
EMPLOYEE BENEFIT PLANS - Estimated Future Benefit Payments (Details) $ in Millions | Dec. 31, 2019USD ($) |
United States Plan | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2020 | $ 0.1 |
Pension Plan | Foreign Plan | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2020 | 2.4 |
2021 | 2.6 |
2022 | 2.1 |
2023 | 2.3 |
2024 | 2.3 |
Subsequent five years | 13.3 |
Pension Plan | United States Plan | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2020 | 0 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
Subsequent five years | 2.8 |
Other Postretirement Benefits Plan | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2020 | 0.1 |
2021 | 0.1 |
2022 | 0.1 |
2023 | 0.1 |
2024 | 0.1 |
Subsequent five years | $ 0.6 |
EMPLOYEE BENEFIT PLANS - Obliga
EMPLOYEE BENEFIT PLANS - Obligations and Funded Status (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Plan | Foreign Plan | |||
Change in projected benefit obligation: | |||
Projected benefit obligation - beginning of year | $ 47.3 | $ 46.1 | |
Service cost | 0.8 | 0.6 | $ 0.4 |
Interest cost | 0.7 | 0.7 | 0.8 |
Actuarial losses (gains) | 4.5 | (1.9) | |
Benefits paid | (2.4) | (2.5) | |
Recognition of plans previously accounted for as defined contribution plans | 0 | 6.1 | |
Curtailment gains | 0 | 0 | (1.1) |
Foreign exchange and other | (0.9) | (1.8) | |
Projected benefit obligation - end of year | 50 | 47.3 | 46.1 |
Change in plan assets: | |||
Fair value of plan assets - beginning of year | 6.1 | 0.7 | |
Actual return on plan assets | 0.3 | 0 | |
Contributions (employer and employee) | 0.6 | 0.3 | |
Benefits paid | (0.3) | (0.3) | |
Recognition of plans previously accounted for as defined contribution plans | 0 | 5.5 | |
Foreign exchange and other | (0.1) | (0.1) | |
Fair value of plan assets - end of year | 6.6 | 6.1 | 0.7 |
Funded status at year-end | (43.4) | (41.2) | |
Amounts recognized in the consolidated balance sheets consist of: | |||
Accrued expenses | (2) | (2) | |
Other long-term liabilities | (41.4) | (39.2) | |
Net amount recognized | (43.4) | (41.2) | |
Amount recognized in accumulated other comprehensive loss (pre-tax) consists of net prior service costs | 0.1 | 0.1 | |
Accumulated benefit obligation | 48.6 | 46.1 | |
Pension Plan | United States Plan | |||
Change in projected benefit obligation: | |||
Projected benefit obligation - beginning of year | 10.7 | 9.8 | |
Service cost | 0 | 1 | 0.7 |
Interest cost | 0.2 | 0.3 | 0.3 |
Actuarial losses (gains) | 0.7 | (0.3) | |
Benefits paid | (6.3) | 0 | |
Recognition of plans previously accounted for as defined contribution plans | 0 | 0 | |
Curtailment gains | 0 | (0.1) | 0 |
Foreign exchange and other | 0 | 0 | |
Projected benefit obligation - end of year | 5.3 | 10.7 | 9.8 |
Change in plan assets: | |||
Fair value of plan assets - beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Contributions (employer and employee) | 0 | 0 | |
Benefits paid | 0 | 0 | |
Recognition of plans previously accounted for as defined contribution plans | 0 | 0 | |
Foreign exchange and other | 0 | 0 | |
Fair value of plan assets - end of year | 0 | 0 | 0 |
Funded status at year-end | (5.3) | (10.7) | |
Amounts recognized in the consolidated balance sheets consist of: | |||
Accrued expenses | 0 | (6.2) | |
Other long-term liabilities | (5.3) | (4.5) | |
Net amount recognized | (5.3) | (10.7) | |
Amount recognized in accumulated other comprehensive loss (pre-tax) consists of net prior service costs | 0 | 0 | |
Accumulated benefit obligation | 5.3 | 10.7 | |
Other Postretirement Benefits Plan | |||
Change in projected benefit obligation: | |||
Projected benefit obligation - beginning of year | 4 | 4.3 | |
Service cost | 0.1 | 0.1 | 0.1 |
Interest cost | 0.2 | 0.2 | 0.1 |
Actuarial losses (gains) | 0.4 | (0.4) | |
Benefits paid | (0.1) | 0 | |
Recognition of plans previously accounted for as defined contribution plans | 0 | 0 | |
Curtailment gains | 0 | (0.2) | 0 |
Foreign exchange and other | 0 | 0 | |
Projected benefit obligation - end of year | 4.6 | 4 | 4.3 |
Change in plan assets: | |||
Fair value of plan assets - beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Contributions (employer and employee) | 0 | 0 | |
Benefits paid | 0 | 0 | |
Recognition of plans previously accounted for as defined contribution plans | 0 | 0 | |
Foreign exchange and other | 0 | 0 | |
Fair value of plan assets - end of year | 0 | 0 | $ 0 |
Funded status at year-end | (4.6) | (4) | |
Amounts recognized in the consolidated balance sheets consist of: | |||
Accrued expenses | (0.1) | (0.1) | |
Other long-term liabilities | (4.5) | (3.9) | |
Net amount recognized | (4.6) | (4) | |
Amount recognized in accumulated other comprehensive loss (pre-tax) consists of net prior service costs | 0 | 0 | |
Accumulated benefit obligation | $ 4.6 | $ 4 |
EMPLOYEE BENEFIT PLANS - Schedu
EMPLOYEE BENEFIT PLANS - Schedule of Net Periodic Pension Benefit Expense (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)participant | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Charge related to the effects of a partial settlement and remeasurement | $ 0.2 | ||
Pension Plan | Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0.8 | $ 0.6 | $ 0.4 |
Interest cost | 0.7 | 0.7 | 0.8 |
Expected return on plan assets | (0.2) | (0.1) | (0.1) |
Curtailment gains | 0 | 0 | (1.1) |
Recognized net actuarial losses (gains) | 4.4 | (1.3) | (1.6) |
Total net periodic pension/postretirement benefit expense (income) | $ 5.7 | (0.1) | (1.6) |
Number of participants (in participants) | participant | 50 | ||
Service cost related to change in accounting for defined contirbution plans | $ 0.6 | ||
Pension Plan | United States Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0 | 1 | 0.7 |
Interest cost | 0.2 | 0.3 | 0.3 |
Expected return on plan assets | 0 | 0 | 0 |
Curtailment gains | 0 | (0.1) | 0 |
Recognized net actuarial losses (gains) | 0.7 | (0.3) | 0.5 |
Total net periodic pension/postretirement benefit expense (income) | 0.9 | 0.9 | 1.5 |
Service cost related to termination of former participant | $ 0.2 | ||
Pension Plan | NETHERLANDS | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of participants (in participants) | participant | 60 | ||
Other Postretirement Benefits Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 0.1 | 0.1 | 0.1 |
Interest cost | 0.2 | 0.2 | 0.1 |
Expected return on plan assets | 0 | 0 | 0 |
Curtailment gains | 0 | (0.2) | 0 |
Recognized net actuarial losses (gains) | 0.4 | (0.4) | 0.2 |
Total net periodic pension/postretirement benefit expense (income) | $ 0.7 | $ (0.3) | $ 0.4 |
EMPLOYEE BENEFIT PLANS - Assump
EMPLOYEE BENEFIT PLANS - Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Plan | Foreign Plan | |||
Weighted-average actuarial assumptions used in determining net periodic pension expense: | |||
Discount rate | 1.52% | 1.51% | 1.54% |
Rate of increase in compensation levels | 2.71% | 2.50% | 2.68% |
Expected long-term rate of return on assets | 3.37% | 1.00% | 1.82% |
Weighted-average actuarial assumptions used in determining year-end benefit obligations: | |||
Discount rate | 0.76% | 1.52% | 1.51% |
Rate of increase in compensation levels | 2.72% | 2.71% | 2.50% |
Assumed health care cost trend rates: | |||
Discount rate used in determining net periodic postretirement benefit expense | 1.52% | 1.51% | 1.54% |
Discount rate used in determining year-end postretirement benefit obligation | 0.76% | 1.52% | 1.51% |
Pension Plan | United States Plan | |||
Weighted-average actuarial assumptions used in determining net periodic pension expense: | |||
Discount rate | 4.11% | 3.49% | 3.82% |
Rate of increase in compensation levels | 2.50% | 2.50% | |
Weighted-average actuarial assumptions used in determining year-end benefit obligations: | |||
Discount rate | 2.92% | 4.11% | 3.49% |
Rate of increase in compensation levels | 2.50% | ||
Assumed health care cost trend rates: | |||
Discount rate used in determining net periodic postretirement benefit expense | 4.11% | 3.49% | 3.82% |
Discount rate used in determining year-end postretirement benefit obligation | 2.92% | 4.11% | 3.49% |
Other Postretirement Benefits Plan | |||
Weighted-average actuarial assumptions used in determining net periodic pension expense: | |||
Discount rate | 4.55% | 3.79% | 4.32% |
Weighted-average actuarial assumptions used in determining year-end benefit obligations: | |||
Discount rate | 3.72% | 4.55% | 3.79% |
Assumed health care cost trend rates: | |||
Health care cost trend rate for next year | 6.75% | 7.00% | 7.25% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 5.00% | 5.00% | 5.00% |
Discount rate used in determining net periodic postretirement benefit expense | 4.55% | 3.79% | 4.32% |
Discount rate used in determining year-end postretirement benefit obligation | 3.72% | 4.55% | 3.79% |
EMPLOYEE BENEFIT PLANS - Define
EMPLOYEE BENEFIT PLANS - Defined Contribution Retirement Plan (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |||
Percentage of compensation employees may contribute (less than) | 50.00% | ||
Cost for matching contributions | $ 5.7 | $ 6.3 | $ 6.6 |
INCOME TAXES - Income (Loss) Be
INCOME TAXES - Income (Loss) Before Income Taxes and Provision for (Benefit from) Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income (loss) before income taxes: | |||
United States | $ 78.8 | $ 97.3 | $ 95.8 |
Foreign | 6.7 | (25.5) | (59.2) |
Income before income taxes | 85.5 | 71.8 | 36.6 |
Current: | |||
United States | (18.1) | 33.4 | 23.5 |
Foreign | 35.6 | 18.5 | 9.9 |
Total current | 17.5 | 51.9 | 33.4 |
Deferred and other: | |||
United States | 6.4 | 0.3 | (30.3) |
Foreign | 5 | 9.1 | (0.5) |
Total deferred and other | 11.4 | 9.4 | (30.8) |
Total provision | $ 28.9 | $ 61.3 | $ 2.6 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Income Tax (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Tax at U.S. federal statutory rate | 21.00% | 21.00% | 35.00% |
State and local taxes, net of U.S. federal benefit | 1.60% | 2.50% | 1.80% |
U.S. credits and exemptions | (9.30%) | (5.00%) | (13.60%) |
Tax rate differential on foreign earnings | (1.70%) | 18.40% | 15.20% |
Adjustments to uncertain tax positions | (0.60%) | 0.20% | (11.70%) |
Changes in valuation allowance | 19.90% | 15.40% | 25.40% |
Tax on repatriation of foreign earnings | (7.00%) | 30.60% | 148.80% |
U.S. federal rate change | 0.00% | 0.30% | (194.90%) |
Stock compensation | (0.10%) | 0.20% | 3.60% |
Tax on transfer to non-U.S. affiliates | 7.00% | 0.00% | 0.00% |
Other | 3.00% | 1.80% | (2.50%) |
Effective income tax rate | 33.80% | 85.40% | 7.10% |
INCOME TAXES - Components of De
INCOME TAXES - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Net operating loss and credit carryforwards | $ 378.7 | $ 338.3 |
Pension, other postretirement and postemployment benefits | 8.9 | 9.1 |
Payroll and compensation | 11.9 | 13.5 |
Working capital accruals | 10.2 | 10.1 |
Accelerated depreciation | 3.7 | 0.1 |
Other | 53.1 | 44.3 |
Total deferred tax assets | 466.5 | 415.4 |
Valuation allowance | (152.1) | (82.5) |
Net deferred tax assets | 314.4 | 332.9 |
Deferred tax liabilities: | ||
Intangible assets recorded in acquisitions | 33.4 | 39.4 |
Basis difference in affiliates | 208.8 | 266.8 |
Other | 6.9 | 4.1 |
Total deferred tax liabilities | 249.1 | 310.3 |
Net deferred tax assets | $ 65.3 | $ 22.6 |
INCOME TAXES - General Matters
INCOME TAXES - General Matters (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Loss Carryforwards [Line Items] | ||
Tax loss carryforwards of various foreign jurisdictions | $ 1,541.3 | |
Federal tax loss carryforwards | 11.6 | |
State tax loss carryforwards | 89.6 | |
Increase (decrease) in valuation allowance | 69.6 | $ 6 |
Valuation allowance increase recognized as increase in tax expense | 17 | $ 11.1 |
Tax Period 2019 Through 2037 | ||
Operating Loss Carryforwards [Line Items] | ||
Tax loss carryforwards that expire | $ 357 |
INCOME TAXES - Undistributed Fo
INCOME TAXES - Undistributed Foreign Earnings (Details) $ in Millions | Dec. 31, 2019USD ($) |
Income Tax Disclosure [Abstract] | |
Provision undistributed accumulated earnings of foreign subsidiary | $ 4.1 |
INCOME TAXES - Unrecognized Tax
INCOME TAXES - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Unrecognized tax benefits | $ 18.7 | $ 5.3 | $ 5.6 | $ 13.9 |
Unrecognized tax benefits, net | 17.4 | 2.9 | ||
Unrecognized tax benefits that would impact effective tax rate | 12.4 | |||
Unrecognized tax benefits, interest on income taxes accrued | 0.5 | 0.3 | ||
Unrecognized tax benefits, interest on income taxes accrued, net | 0.4 | 0.2 | ||
Interest (income) expense | 0.2 | $ 0.1 | $ (1.5) | |
Minimum | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Reasonably possible decrease in unrecognized tax benefits (less than) | 1 | |||
Maximum | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Reasonably possible decrease in unrecognized tax benefits (less than) | $ 2 |
INCOME TAXES - Changes in Balan
INCOME TAXES - Changes in Balance of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefit - beginning of year | $ 5.3 | $ 5.6 | $ 13.9 |
Gross increases - tax positions in prior period | 15.9 | 1.2 | 0 |
Gross decreases - tax positions in prior period | (0.8) | (0.4) | (2.3) |
Gross increases - tax positions in current period | 0 | 0.2 | 0.4 |
Settlements | 0 | 0 | 0 |
Lapse of statute of limitations | (1.7) | (1.3) | (6.4) |
Change due to foreign currency exchange rates | 0 | 0 | 0 |
Unrecognized tax benefit - end of year | $ 18.7 | $ 5.3 | $ 5.6 |
INCOME TAXES - Other Tax Matter
INCOME TAXES - Other Tax Matters (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||
Tax provision (benefit) | $ 28.9 | $ 61.3 | $ 2.6 | ||
Income before income taxes | $ 85.5 | $ 71.8 | $ 36.6 | ||
Effective income tax rate | 33.80% | 85.40% | 7.10% | ||
Income tax charge, addition of valuation allowance | $ 6.9 | ||||
Tax benefit resulting from the write-off of tax benefits not expected to be realized | $ 2 | 3.1 | |||
Income tax charge due to outbound transfer of an affiliate to non-U.S. entities | 6 | ||||
Income tax charge due to outside basis difference | 1.8 | ||||
Income tax charge due to net impact of cancellation of certain intercompany indebtedness | 3.9 | ||||
Transition tax on accumulated foreign earnings, tax cuts and jobs act of 2017 | $ 19.6 | 22.2 | $ 50.4 | ||
Charges related to pre-tax losses | $ 7.7 | $ 9 | 10.4 | ||
Change in enacted tax rate | $ 71.2 |
INDEBTEDNESS - Schedule of Debt
INDEBTEDNESS - Schedule of Debt (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2019 | May 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Aug. 31, 2016 | |
Short-term Debt [Line Items] | |||||
Other indebtedness | $ 21,300,000 | $ 33,100,000 | |||
Less: short-term debt | 20,700,000 | 26,000,000 | |||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 712,200,000 | 718,300,000 | |||
Less: deferred financing fees | (6,800,000) | (8,000,000) | |||
Total debt | 714,500,000 | 765,100,000 | |||
Less: current maturities of long-term debt | 100,000 | 20,800,000 | |||
Total long-term debt | 693,700,000 | 718,300,000 | |||
Expense related to write-off of deferred financing fees | $ 1,000,000 | ||||
5.625% senior notes, due in August 2024 | |||||
Debt Instrument [Line Items] | |||||
Senior notes interest rate | 5.625% | ||||
5.875% senior notes, due in August 2026 | |||||
Debt Instrument [Line Items] | |||||
Senior notes interest rate | 5.875% | ||||
Capital lease obligations | |||||
Short-term Debt [Line Items] | |||||
Other indebtedness | $ 600,000 | 7,200,000 | |||
Purchase card program | |||||
Short-term Debt [Line Items] | |||||
Other indebtedness | 20,400,000 | 23,000,000 | |||
Less: short-term debt | $ 0 | ||||
Term loan | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 100,000,000 | 140,000,000 | |||
Senior notes | 5.625% senior notes, due in August 2024 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 300,000,000 | 300,000,000 | |||
Senior notes interest rate | 5.625% | 5.625% | |||
Senior notes | 5.875% senior notes, due in August 2026 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 300,000,000 | $ 300,000,000 | |||
Senior notes interest rate | 5.875% | 5.875% |
INDEBTEDNESS - Maturities of Lo
INDEBTEDNESS - Maturities of Long-Term Debt Payable (Details) $ in Millions | Dec. 31, 2019USD ($) |
Maturities of Long-term Debt and Capital Lease Obligations [Abstract] | |
2020 | $ 20.8 |
2021 | 0.2 |
2022 | 100.1 |
2023 | 0.1 |
2024 | $ 300.1 |
INDEBTEDNESS - Senior Credit Fa
INDEBTEDNESS - Senior Credit Facilities (Details) | Jun. 27, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018 |
Senior Credit Facilities | |||
Line of Credit Facility [Line Items] | |||
Debt covenant, maintained interest coverage ratio | 3 | ||
Consolidated quarterly leverage ratio | 4 | ||
Secured debt | |||
Line of Credit Facility [Line Items] | |||
Aggregate principal amount (up to) | $ 750,000,000 | ||
Secured debt | Senior Credit Facilities | |||
Line of Credit Facility [Line Items] | |||
Ratio of indebtedness to net capital | 2.75 | ||
Proceeds reinvestment period | 360 days | ||
Required reinvestment period | 180 days | ||
Security interest in capital stock of domestic subsidiaries | 100.00% | ||
Percentage of capital stock of first-tier foreign subsidiaries | 65.00% | ||
Consolidated Leverage Ratio limitations on ability to repurchase capital stock and pay cash dividends | 2.50 | ||
Capital stock repurchase and dividend declaration amount (equal to or less than) | $ 100,000,000 | ||
Additional amount for stock repurchase and dividend declarations | $ 300,000,000 | ||
Capital stock repurchase and dividend declaration, percentage of cumulative Consolidated Net Income | 50.00% | ||
Capital stock repurchase and dividend declaration, deficit of Consolidated Net Income | 100.00% | ||
Available borrowing capacity | $ 494,900,000 | ||
Guarantor obligations, current carrying value | $ 9,600,000 | ||
Weighted-average interest rate of outstanding borrowings | 3.10% | 4.30% | |
Consolidated leverage ratio | 3.75 | ||
Secured debt | Senior Credit Facilities | Federal funds effective rate | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 0.50% | ||
Secured debt | Senior Credit Facilities | One-Month LIBOR | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.00% | ||
Secured debt | Senior Credit Facilities | Maximum | |||
Line of Credit Facility [Line Items] | |||
Allowance for additional commitments (up to) | $ 275,000,000 | ||
Secured debt | Term loan | |||
Line of Credit Facility [Line Items] | |||
Aggregate principal amount | 100,000,000 | ||
Secured debt | United States revolving loan facility | |||
Line of Credit Facility [Line Items] | |||
Aggregate principal amount (up to) | $ 200,000,000 | ||
Secured debt | Financial Letter of Credit Fee | |||
Line of Credit Facility [Line Items] | |||
Fronting fee | 0.125% | ||
Outstanding letters of credit issued under revolving credit and foreign credit instrument facilities | $ 5,100,000 | ||
Secured debt | Global Revolving Commitment Fee | |||
Line of Credit Facility [Line Items] | |||
Aggregate principal amount (up to) | $ 300,000,000 | ||
Secured debt | Participation foreign line of credit | |||
Line of Credit Facility [Line Items] | |||
Available borrowing capacity | 69,600,000 | ||
Outstanding letters of credit issued under revolving credit and foreign credit instrument facilities | $ 80,400,000 | ||
Secured debt | FCI Commitment Fee | |||
Line of Credit Facility [Line Items] | |||
Aggregate principal amount (up to) | $ 150,000,000 |
INDEBTEDNESS - Schedule of Per
INDEBTEDNESS - Schedule of Per Annum Fees Charged and Interest Rate Margins (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Greater than or equal to 3.50 to 1.0 | |
Line of Credit Facility [Line Items] | |
Instrument fee | 1.20% |
Between 3.50 to 1.0 and 2.50 to 1.0 | |
Line of Credit Facility [Line Items] | |
Instrument fee | 1.05% |
Between 2.50 to 1.0 and 1.50 to 1.0 | |
Line of Credit Facility [Line Items] | |
Instrument fee | 0.90% |
Less than 1.50 to 1.0 | |
Line of Credit Facility [Line Items] | |
Instrument fee | 0.75% |
LIBOR | Greater than or equal to 3.50 to 1.0 | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 2.00% |
LIBOR | Between 3.50 to 1.0 and 2.50 to 1.0 | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 1.75% |
LIBOR | Between 2.50 to 1.0 and 1.50 to 1.0 | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 1.50% |
LIBOR | Less than 1.50 to 1.0 | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 1.25% |
ABR | Greater than or equal to 3.50 to 1.0 | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 1.00% |
ABR | Between 3.50 to 1.0 and 2.50 to 1.0 | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 0.75% |
ABR | Between 2.50 to 1.0 and 1.50 to 1.0 | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 0.50% |
ABR | Less than 1.50 to 1.0 | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 0.25% |
Domestic Revolving Commitment Fee | Greater than or equal to 3.50 to 1.0 | |
Line of Credit Facility [Line Items] | |
Commitment fee | 0.30% |
Domestic Revolving Commitment Fee | Between 3.50 to 1.0 and 2.50 to 1.0 | |
Line of Credit Facility [Line Items] | |
Commitment fee | 0.275% |
Domestic Revolving Commitment Fee | Between 2.50 to 1.0 and 1.50 to 1.0 | |
Line of Credit Facility [Line Items] | |
Commitment fee | 0.25% |
Domestic Revolving Commitment Fee | Less than 1.50 to 1.0 | |
Line of Credit Facility [Line Items] | |
Commitment fee | 0.225% |
Global Revolving Commitment Fee | Greater than or equal to 3.50 to 1.0 | |
Line of Credit Facility [Line Items] | |
Commitment fee | 0.30% |
Global Revolving Commitment Fee | Between 3.50 to 1.0 and 2.50 to 1.0 | |
Line of Credit Facility [Line Items] | |
Commitment fee | 0.275% |
Global Revolving Commitment Fee | Between 2.50 to 1.0 and 1.50 to 1.0 | |
Line of Credit Facility [Line Items] | |
Commitment fee | 0.25% |
Global Revolving Commitment Fee | Less than 1.50 to 1.0 | |
Line of Credit Facility [Line Items] | |
Commitment fee | 0.225% |
Financial Letter of Credit Fee | Greater than or equal to 3.50 to 1.0 | |
Line of Credit Facility [Line Items] | |
Commitment fee | 2.00% |
Financial Letter of Credit Fee | Between 3.50 to 1.0 and 2.50 to 1.0 | |
Line of Credit Facility [Line Items] | |
Commitment fee | 1.75% |
Financial Letter of Credit Fee | Between 2.50 to 1.0 and 1.50 to 1.0 | |
Line of Credit Facility [Line Items] | |
Commitment fee | 1.50% |
Financial Letter of Credit Fee | Less than 1.50 to 1.0 | |
Line of Credit Facility [Line Items] | |
Commitment fee | 1.25% |
FCI Commitment Fee | Greater than or equal to 3.50 to 1.0 | |
Line of Credit Facility [Line Items] | |
Commitment fee | 0.30% |
FCI Commitment Fee | Between 3.50 to 1.0 and 2.50 to 1.0 | |
Line of Credit Facility [Line Items] | |
Commitment fee | 0.275% |
FCI Commitment Fee | Between 2.50 to 1.0 and 1.50 to 1.0 | |
Line of Credit Facility [Line Items] | |
Commitment fee | 0.25% |
FCI Commitment Fee | Less than 1.50 to 1.0 | |
Line of Credit Facility [Line Items] | |
Commitment fee | 0.225% |
INDEBTEDNESS - Senior Notes and
INDEBTEDNESS - Senior Notes and Other (Details) - USD ($) | 1 Months Ended | ||||
May 31, 2019 | Aug. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | |
Debt Instrument [Line Items] | |||||
Short-term debt | $ 20,700,000 | $ 26,000,000 | |||
Write off of Deferred Debt Issuance Cost | $ 100,000 | ||||
Purchase card program | |||||
Debt Instrument [Line Items] | |||||
Financing arrangement (up to) | $ 50,000,000 | ||||
Short-term debt | $ 0 | ||||
FCI Commitment Fee | |||||
Debt Instrument [Line Items] | |||||
Financing arrangement (up to) | $ 9,500,000 | ||||
2024 and 2026 Notes | Senior notes | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 600,000,000 | ||||
Redemption price as percentage of principal amount | 100.00% | ||||
Redemption price as a percentage of principal amount plus accrued and unpaid interest | 101.00% | ||||
5.625% senior notes, due in August 2024 | |||||
Debt Instrument [Line Items] | |||||
Senior notes interest rate | 5.625% | ||||
5.625% senior notes, due in August 2024 | Senior notes | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 300,000,000 | ||||
Senior notes interest rate | 5.625% | 5.625% | |||
5.875% senior notes, due in August 2026 | |||||
Debt Instrument [Line Items] | |||||
Senior notes interest rate | 5.875% | ||||
5.875% senior notes, due in August 2026 | Senior notes | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 300,000,000 | ||||
Senior notes interest rate | 5.875% | 5.875% | |||
6.875% senior notes | Senior notes | |||||
Debt Instrument [Line Items] | |||||
Senior notes interest rate | 6.875% | ||||
Extinguishment of debt, amount | $ 600,000,000 | ||||
Premiums paid to redeem debt | $ 36,400,000 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Foreign exchange forward contracts | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 83.3 | $ 65.3 | |
Period contracts are scheduled to mature | 1 year | ||
Net unrealized gains (losses) on qualifying cash flow hedges, net of tax | $ (0.2) | (0.3) | |
Foreign Exchange embedded derivatives | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 0.9 | 3.1 | |
Forward contracts | |||
Derivative [Line Items] | |||
Fair value of derivative contract, gross assets | 0.3 | 0.7 | |
Fair value of derivative contract, gross liabilities | 0 | 0.2 | |
Forward contracts | Other income (expense), net | |||
Derivative [Line Items] | |||
Net gains (losses) related to foreign currency gains (losses) | $ (3.1) | $ (7.4) | $ (2.3) |
Minimum | Foreign Exchange embedded derivatives | |||
Derivative [Line Items] | |||
Period contracts are scheduled to mature | 1 year |
EQUITY AND STOCK-BASED COMPEN_3
EQUITY AND STOCK-BASED COMPENSATION - Income (Loss) Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | |||
Weighted-average shares outstanding, basic (in shares) | 42,465 | 42,197 | 41,799 |
Dilutive effect of share-based awards (in shares) | 221 | 436 | 384 |
Weighted-average shares outstanding, dilutive (in shares) | 42,686 | 42,633 | 42,183 |
Restricted stock shares and 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 threshold requirement (in shares) | 119 | 41 | |
Securities not included in computation of diluted income per share due to internal performance thresholds | 138 | 223 | 202 |
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 | 342 | 358 |
EQUITY AND STOCK-BASED COMPEN_4
EQUITY AND STOCK-BASED COMPENSATION - Stock-Based Compensation Narrative (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Period of historical volatility | 6 years | ||
Stock Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unissued shares of stock available for future grants (up to) (in shares) | 2,713 | ||
Restricted stock shares and restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
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 | ||
Age upon which recipients are eligible for vesting | 60 years | ||
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 units | Non-officer employee | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | 3 years | |
Restricted stock | Officers | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award's requisite service period | 3 years | ||
Minimum | Restricted stock shares and restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of shares equivalent to minimum vesting | 50.00% | ||
Maximum | Restricted stock shares and restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of shares equivalent to minimum vesting | 150.00% | ||
SPX | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award's requisite service period | 3 years | ||
SPX | Restricted stock shares and restricted stock units | Non-officer employee | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
SPX | Restricted stock shares and restricted stock units | Officers | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
SPX | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 1 year | ||
SPX | Maximum | |||
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 - Schedule of Compensation Expense Related to Share-based Programs (Details) - Selling, general and administrative expenses - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense recognized in continuing operations | $ 12.5 | $ 14.1 | $ 14.6 |
Income tax benefit | (2.9) | (3.4) | (5.2) |
Stock-based compensation expense, net of income tax benefit | 9.6 | 10.7 | 9.4 |
Spinoff | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense recognized in continuing operations | 1.2 | 1.6 | 1.3 |
SPX FLOW | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense recognized in continuing operations | $ 13.7 | $ 15.7 | $ 15.9 |
EQUITY AND STOCK-BASED COMPEN_6
EQUITY AND STOCK-BASED COMPENSATION - Restricted Stock Share and Restricted Stock Unit Awards, Fair Value Assumptions (Details) - $ / shares | Mar. 21, 2019 | Mar. 06, 2018 | Jan. 13, 2017 | Dec. 31, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
SPX | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 1 year | |||
SPX | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Restricted stock shares and restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Annual Expected Dividend Yield | 0.00% | 0.00% | 0.00% | |
Vesting period | 3 years | |||
Restricted stock shares and restricted stock units | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Correlation Between Total Shareholder Return and Individual Companies in the Composite Group or S&P Index (in dollars per share) | $ 0.1274 | $ 0.1216 | $ 0.1848 | |
Restricted stock shares and restricted stock units | Average | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Correlation Between Total Shareholder Return and Individual Companies in the Composite Group or S&P Index (in dollars per share) | 0.4364 | 0.4193 | 0.3830 | |
Restricted stock shares and restricted stock units | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Correlation Between Total Shareholder Return and Individual Companies in the Composite Group or S&P Index (in dollars per share) | $ 0.7393 | $ 0.6928 | $ 0.5057 | |
Restricted stock shares and restricted stock units | Composite Group | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Annual Expected Stock Price Volatility | 28.10% | 27.90% | 28.60% | |
Risk-free Interest Rate | 2.45% | 2.36% | 1.50% | |
Restricted stock shares and restricted stock units | SPX | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Annual Expected Stock Price Volatility | 36.90% | 42.00% | 39.40% | |
Risk-free Interest Rate | 2.45% | 2.36% | 1.50% |
EQUITY AND STOCK-BASED COMPEN_7
EQUITY AND STOCK-BASED COMPENSATION - Summary of Restricted Stock Share and Restricted Stock Unit Awards Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Unvested Restricted Stock Shares and Restricted Stock Units | |||
Granted (in shares) | 546 | ||
Vested (in shares) | (462) | ||
Forfeited and other (in shares) | (261) | ||
Outstanding at the end of period (in shares) | 999 | ||
Weighted-Average Grant-Date Fair Value Per Share | |||
Granted (in dollars per share) | $ 34.51 | ||
Vested (in dollars per share) | 32.95 | ||
Forfeited and other (in dollars per share) | 31.51 | ||
Outstanding at the end of period (in dollars per share) | $ 38.24 | ||
Unrecognized compensation cost related to awards with continuing operations | $ 16.1 | ||
Weighted-average period cost expected to be recognized | 1 year 9 months 18 days | ||
Restricted stock shares and restricted stock units | |||
Unvested Restricted Stock Shares and Restricted Stock Units | |||
Outstanding at beginning of year (in shares) | 1,176 | 1,132 | 1,275 |
Granted (in shares) | 404 | 486 | |
Vested (in shares) | (312) | (358) | |
Forfeited and other (in shares) | (48) | (271) | |
Outstanding at the end of period (in shares) | 1,176 | 1,132 | |
Weighted-Average Grant-Date Fair Value Per Share | |||
Outstanding at beginning of year (in dollars per share) | $ 36.40 | $ 32.65 | $ 37.89 |
Granted (in dollars per share) | 48.63 | 35.18 | |
Vested (in dollars per share) | 39.01 | 42.05 | |
Forfeited and other (in dollars per share) | 33.88 | 49.35 | |
Outstanding at the end of period (in dollars per share) | $ 36.40 | $ 32.65 | |
Unrecognized compensation cost | $ 16.9 | ||
Weighted-average period cost expected to be recognized | 1 year 8 months 12 days |
EQUITY AND STOCK-BASED COMPEN_8
EQUITY AND STOCK-BASED COMPENSATION - Stock Options (Details) - USD ($) $ / shares in Units, shares in Thousands | Jan. 02, 2015 | Dec. 31, 2019 | Dec. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period of historical volatility | 6 years | ||
Vesting period | 3 years | ||
SPX stock options | Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options outstanding (in shares) | 34 | ||
Weighted-average exercise price per share (in dollars per share) | $ 85.87 | ||
Maximum contractual term | 10 years | ||
Weighted-average grant-date fair value (in dollars per share) | $ 27.06 | ||
Period of historical volatility | 7 years | ||
Vesting period | 3 years | ||
SPX FLOW stock options | Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options outstanding (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 | ||
Forfeitures (in shares) | 29 | ||
Unrecognized compensation cost | $ 0 |
EQUITY AND STOCK-BASED COMPEN_9
EQUITY AND STOCK-BASED COMPENSATION - Stock Option, Fair Value Assumptions (Details) - SPX stock options - Stock options | Jan. 02, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Annual expected SPX Corporation stock price volatility | 36.53% |
Annual expected SPX Corporation dividend yield | 1.75% |
Risk-free interest rate | 1.97% |
Expected life of SPX Corporation stock option (in years) | 6 years |
EQUITY AND STOCK-BASED COMPE_10
EQUITY AND STOCK-BASED COMPENSATION - Common Stock in Treasury (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Increase in common stock in treasury | $ 5.4 | $ 5 | $ 7.3 |
Common stock in treasury | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Increase in common stock in treasury | $ 5.4 | $ 5 | $ 4 |
COMMITMENTS, CONTINGENT LIABILI
COMMITMENTS, CONTINGENT LIABILITIES AND OTHER MATTERS - Mezzanine Equity (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Commitments and Contingencies Disclosure [Abstract] | |||
Payments for Legal Settlements | $ 17 | ||
Exercise value of put options outstanding | $ 20.3 | $ 21.5 | |
Value options exercisable | $ 11.2 |
FAIR VALUE - Derivative Financi
FAIR VALUE - Derivative Financial Instruments (Details) transfers in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2019USD ($)transfers | Dec. 31, 2018USD ($) | |
Derivative [Line Items] | ||
Transfers Between Fair Value Hierarchy | transfers | 0 | |
Forward contracts | ||
Derivative [Line Items] | ||
Fair value of derivative contract, gross assets | $ 0.3 | $ 0.7 |
Fair value of derivative contract, gross liabilities | $ 0 | $ 0.2 |
FAIR VALUE - Investments in Equ
FAIR VALUE - Investments in Equity Securities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cumulative reduction of accumulated defecit | $ (369.2) | $ (265.6) | $ (274.1) |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at beginning of year | 16.6 | 0.6 | |
Impact of conversion from historical cost to fair value | 0 | 16 | |
Increase in net asset value recorded to earnings | 7.8 | 0 | |
Proceeds received from partial distribution of investee | (2.6) | 0 | |
Balance at end of year | $ 21.8 | 16.6 | |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities, at cost | $ 0.6 |
FAIR VALUE - Goodwill, Indefini
FAIR VALUE - Goodwill, Indefinite-Lived Intangible and Other Long-Lived Assets (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Indefinite-lived Intangible Assets [Line Items] | |
Impairment charge | $ 9.7 |
Tangible asset impairment charges | 4.5 |
Trademarks and technology assets | |
Indefinite-lived Intangible Assets [Line Items] | |
Impairment charge | $ 9.7 |
FAIR VALUE - Indebtedness and O
FAIR VALUE - Indebtedness and Other (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term debt | $ 20.7 | $ 26 |
Fair value, measurements, nonrecurring | Carrying Amount | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Term loan | 0 | 140 |
Fair value, measurements, nonrecurring | Carrying Amount | Level 2 | Term loan, due in June 2022 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Term loan | 100 | 0 |
Fair value, measurements, nonrecurring | Carrying Amount | Level 2 | 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 | Carrying Amount | Level 2 | 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 | Carrying Amount | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term debt | 20.7 | 25.9 |
Fair value, measurements, nonrecurring | Fair Value | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Term loan | 0 | 140 |
Fair value, measurements, nonrecurring | Fair Value | Level 2 | Term loan, due in June 2022 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Term loan | 100 | 0 |
Fair value, measurements, nonrecurring | Fair Value | Level 2 | 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 | 312 | 283.5 |
Fair value, measurements, nonrecurring | Fair Value | Level 2 | 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 | 316.5 | 279.4 |
Fair value, measurements, nonrecurring | Fair Value | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term debt | $ 20.7 | $ 25.9 |
QUARTERLY RESULTS (UNAUDITED)_2
QUARTERLY RESULTS (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Selected Quarterly Financial Information [Abstract] | |||||||||||
Revenues | $ 364.3 | $ 383.5 | $ 385.4 | $ 373.4 | $ 411.8 | $ 406.7 | $ 406.5 | $ 368.9 | $ 1,506.6 | $ 1,593.9 | $ 1,483.2 |
Gross profit | 131.8 | 134.6 | 130.6 | 123.4 | 127.2 | 131.8 | 135.8 | 118.4 | 520.4 | 513.2 | 487.5 |
Income from continuing operations, net of tax | 13.2 | 17.1 | 11.3 | 15 | (36.6) | 24.8 | 13.5 | 8.8 | 54.9 | 9.5 | 33 |
Less: Income (loss) from discontinued operations, net of tax | (158) | (47.7) | 50.9 | 5.1 | 10.1 | 7.7 | 9.9 | 6.5 | (149.7) | 34.2 | 12.8 |
Net income (loss) | (144.8) | (30.6) | 62.2 | 20.1 | (26.5) | 32.5 | 23.4 | 15.3 | (93.1) | 44.7 | 46.8 |
Less: Net income (loss) attributable to noncontrolling interests | 0.8 | 1 | (0.4) | 0.6 | 0.6 | (0.2) | 0.5 | (0.2) | 2 | 0.7 | 0.4 |
Net income (loss) attributable to SPX FLOW, Inc. | $ (145.6) | $ (31.6) | $ 62.6 | $ 19.5 | $ (27.1) | $ 32.7 | $ 22.9 | $ 15.5 | $ (95.1) | $ 44 | $ 46.4 |
Basic income (loss) per share of common stock from continuing operations (in dollars per share) | $ 0.30 | $ 0.38 | $ 0.26 | $ 0.35 | $ (0.87) | $ 0.58 | $ 0.31 | $ 0.21 | $ 1.29 | $ 0.23 | $ 0.79 |
Basic income (loss) per share of common stock from discontinued operations (in dollars per share) | (3.72) | (1.13) | 1.21 | 0.11 | 0.23 | 0.19 | 0.23 | 0.16 | (3.53) | 0.82 | 0.32 |
Basic income (loss) per share of common stock (in dollars per share) | (3.42) | (0.74) | 1.48 | 0.46 | (0.64) | 0.77 | 0.54 | 0.37 | (2.24) | 1.04 | 1.11 |
Diluted income (loss) per share of common stock from continuing operations (in dollars per share) | 0.30 | 0.38 | 0.26 | 0.35 | (0.87) | 0.58 | 0.31 | 0.20 | 1.29 | 0.22 | 0.78 |
Diluted income (loss) per share of common stock from discontinued operations (in dollars per share) | (3.69) | (1.12) | 1.21 | 0.11 | 0.23 | 0.19 | 0.23 | 0.16 | (3.51) | 0.81 | 0.32 |
Diluted income (loss) per share of common stock (in dollars per share) | $ (3.40) | $ (0.74) | $ 1.47 | $ 0.46 | $ (0.64) | $ 0.77 | $ 0.54 | $ 0.36 | $ (2.23) | $ 1.03 | $ 1.10 |
Indefinite-lived Intangible Assets [Line Items] | |||||||||||
Income tax charge due to outbound transfer of an affiliate to non-U.S. entities | $ 6 | ||||||||||
Tax benefit resulting from the write-off of tax benefits not expected to be realized | $ 2 | 3.1 | |||||||||
Income tax charge due to net impact of cancellation of certain intercompany indebtedness | 3.9 | ||||||||||
Asset impairment charges | 11.2 | $ 14.4 | $ 4.9 | ||||||||
Fair value of asset held for sale | 4 | 4 | |||||||||
Pre-tax income recognized due to net asset value of an equity security | $ 6.2 | ||||||||||
Transition tax on accumulated foreign earnings, tax cuts and jobs act of 2017 | $ 19.6 | 22.2 | 50.4 | ||||||||
Foreign tax credits available, tax expense (benefit) | 9.1 | $ (9.4) | |||||||||
Charges related to pre-tax losses | 7.7 | 9 | 10.4 | ||||||||
Pre-tax charges to reduce carrying value of net assets of the Company's discontinued operations | $ 149 | $ 52 | |||||||||
Pre-tax charge for settlement of a previous customer demand | 17 | ||||||||||
Tax benefits from basis differences realized through disposition of held-for-sale assets | 7.5 | $ 40.6 | |||||||||
Food and Beverage | |||||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||
Revenues | $ 702.9 | $ 743.9 | |||||||||
Food and Beverage | Trademarks and technology assets | |||||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||||
Asset impairment charges | 10.8 | 14.2 | |||||||||
Fair value of asset held for sale | $ 4 | ||||||||||
Special charges, net of tax, including asset impairment | $ 3.5 |
Uncategorized Items - spxf-2019
Label | Element | Value |
Restricted Cash Included in Other Assets | spxf_RestrictedCashIncludedInOtherAssets | $ 100,000 |
Disposal Group Including Discontinued Operations Restricted Cash | spxf_DisposalGroupIncludingDiscontinuedOperationsRestrictedCash | 1,100,000 |
Disposal Group Including Discontinued Operations Restricted Cash | spxf_DisposalGroupIncludingDiscontinuedOperationsRestrictedCash | 900,000 |
Disposal Group Including Discontinued Operations Restricted Cash | spxf_DisposalGroupIncludingDiscontinuedOperationsRestrictedCash | 1,200,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (8,500,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 10,600,000 |
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 | (8,500,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 10,600,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (8,500,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 17,900,000 |