Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 27, 2020 | Jul. 31, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 27, 2020 | |
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 $0.01 | |
Trading Symbol | FLOW | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 42,426,470 | |
Entity Central Index Key | 0001641991 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Income Statement [Abstract] | ||||
Revenues | $ 308.1 | $ 385.4 | $ 597.6 | $ 758.8 |
Cost of products sold | 194.6 | 254.8 | 383 | 504.8 |
Gross profit | 113.5 | 130.6 | 214.6 | 254 |
Selling, general and administrative | 90.8 | 96.2 | 176 | 183.7 |
Intangible amortization | 2.9 | 2.8 | 5.7 | 5.7 |
Asset impairment charges | 0.8 | 0 | 2.7 | 0 |
Restructuring and other related charges | 4.8 | 1.9 | 7.4 | 6.9 |
Operating income | 14.2 | 29.7 | 22.8 | 57.7 |
Other income, net | 5.8 | 1.5 | 4.3 | 6.8 |
Interest expense, net | (9.4) | (8.4) | (17.5) | (16) |
Income from continuing operations before income taxes | 10.6 | 22.8 | 9.6 | 48.5 |
Income tax provision | (3.9) | (11.5) | (3) | (22.2) |
Income from continuing operations | 6.7 | 11.3 | 6.6 | 26.3 |
Income (loss) from discontinued operations, net of tax | (31.6) | 50.9 | (36.7) | 56 |
Net income (loss) | (24.9) | 62.2 | (30.1) | 82.3 |
Less: Net income (loss) attributable to noncontrolling interests | 0.2 | (0.4) | 0.3 | 0.2 |
Net income (loss) attributable to SPX FLOW, Inc. | (25.1) | 62.6 | (30.4) | 82.1 |
Amounts attributable to SPX FLOW, Inc. common shareholders: | ||||
Income from continuing operations, net of tax | 6.5 | 11.2 | 6.2 | 25.9 |
Income (loss) from discontinued operations, net of tax | (31.6) | 51.4 | (36.6) | 56.2 |
Net income (loss) attributable to SPX FLOW, Inc. | $ (25.1) | $ 62.6 | $ (30.4) | $ 82.1 |
Basic income (loss) per share of common stock: | ||||
Income per share from continuing operations (in dollars per share) | $ 0.15 | $ 0.26 | $ 0.15 | $ 0.61 |
Income (loss) per share from discontinued operations (in dollars per share) | (0.75) | 1.21 | (0.86) | 1.33 |
Net income (loss) per share attributable to SPX FLOW, Inc. (in dollars per share) | (0.59) | 1.48 | (0.71) | 1.94 |
Diluted income (loss) per share of common stock: | ||||
Income per share from continuing operations (in dollars per share) | 0.15 | 0.26 | 0.15 | 0.61 |
Income (loss) per share from discontinued operations (in dollars per share) | (0.74) | 1.21 | (0.86) | 1.32 |
Net income (loss) per share attributable to SPX FLOW, Inc. (in dollars per share) | $ (0.59) | $ 1.47 | $ (0.71) | $ 1.93 |
Weighted average number of common shares outstanding - basic (in shares) | 42,397 | 42,368 | 42,524 | 42,410 |
Weighted average number of common shares outstanding - diluted (in shares) | 42,505 | 42,617 | 42,703 | 42,597 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (24.9) | $ 62.2 | $ (30.1) | $ 82.3 |
Other comprehensive income (loss), net: | ||||
Net unrealized gains on qualifying cash flow hedges, net of tax provision of ($0.1), $—, $— and ($0.1) respectively | 0.3 | 0 | 0.2 | 0.2 |
Foreign currency translation adjustments | 30.2 | 9.3 | (34.6) | 0.4 |
Other comprehensive income (loss), net | 30.5 | 9.3 | (34.4) | 0.6 |
Total comprehensive income (loss) | 5.6 | 71.5 | (64.5) | 82.9 |
Less: Total comprehensive income (loss) attributable to noncontrolling interests | 0.4 | (0.6) | (0.1) | 0 |
Total comprehensive income (loss) attributable to SPX FLOW, Inc. | $ 5.2 | $ 72.1 | $ (64.4) | $ 82.9 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net unrealized gains on qualifying cash flow hedges, tax (provision) | $ 0.1 | $ 0 | $ 0 | $ 0.1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 27, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and equivalents | $ 657.1 | $ 299.2 |
Accounts receivable, net | 217.3 | 243.1 |
Contract assets | 28.7 | 27.3 |
Inventories, net | 232 | 208.1 |
Other current assets | 27.2 | 32.2 |
Assets of discontinued operations | 4.1 | 464 |
Total current assets | 1,166.4 | 1,273.9 |
Property, plant and equipment: | ||
Land | 22.5 | 22.2 |
Buildings and leasehold improvements | 170.8 | 170.8 |
Machinery and equipment | 350.6 | 325.9 |
Property, plant and equipment, gross | 543.9 | 518.9 |
Accumulated depreciation | (318.8) | (289) |
Property, plant and equipment, net | 225.1 | 229.9 |
Goodwill | 543.5 | 545.1 |
Intangibles, net | 199.6 | 208.1 |
Other assets | 159.3 | 180.4 |
TOTAL ASSETS | 2,293.9 | 2,437.4 |
Current liabilities: | ||
Accounts payable | 135.7 | 142.6 |
Contract liabilities | 120.1 | 116.3 |
Accrued expenses | 164.1 | 162 |
Income taxes payable | 28.9 | 45.2 |
Short-term debt | 15.7 | 20.7 |
Current maturities of long-term debt | 0.1 | 0.1 |
Liabilities of discontinued operations | 1.7 | 220.5 |
Total current liabilities | 466.3 | 707.4 |
Long-term debt | 694.3 | 693.7 |
Deferred and other income taxes | 25.3 | 27.9 |
Other long-term liabilities | 109.9 | 115 |
Total long-term liabilities | 829.5 | 836.6 |
Commitments and contingent liabilities (Note 14) | ||
Mezzanine equity | 17.4 | 20.3 |
SPX FLOW, Inc. shareholders’ equity: | ||
Preferred stock, no par value, 3,000,000 shares authorized, and no shares issued and outstanding | 0 | 0 |
Common stock, par value $0.01 per share, 300,000,000 shares authorized, 43,387,156 issued and 42,464,050 outstanding at June 27, 2020, and 43,128,247 issued and 42,566,884 outstanding at December 31, 2019 | 0.4 | 0.4 |
Paid-in capital | 1,686.6 | 1,677 |
Accumulated deficit | (399.6) | (369.2) |
Accumulated other comprehensive loss | (426.5) | |
Common stock in treasury (923,106 shares at June 27, 2020, and 561,363 shares at December 31, 2019) | (32.4) | (19.3) |
Total SPX FLOW, Inc. shareholders' equity | 972.7 | 862.4 |
Noncontrolling interests | 8 | 10.7 |
Total equity | 980.7 | 873.1 |
TOTAL LIABILITIES, MEZZANINE EQUITY AND EQUITY | $ 2,293.9 | $ 2,437.4 |
Common stock in treasury (in shares) | 923,106 | 561,363 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 27, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 3,000,000 | 3,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 43,387,156 | 43,128,247 |
Common stock, shares outstanding (in shares) | 42,464,050 | 42,566,884 |
Common stock in treasury (in shares) | 923,106 | 561,363 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Paid-In Capital | Accumulated Deficit | Accumulated DeficitCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss | Common Stock in Treasury | Total SPX FLOW, Inc. Shareholders' Equity | Total SPX FLOW, Inc. Shareholders' EquityCumulative Effect, Period of Adoption, Adjustment | Noncontrolling Interests |
Beginning balance (in shares) at Dec. 31, 2018 | 42,500,000 | ||||||||||
Beginning balance at Dec. 31, 2018 | $ 963.1 | $ (8.5) | $ 0.4 | $ 1,662.6 | $ (265.6) | $ (8.5) | $ (430.7) | $ (13.9) | $ 952.8 | $ (8.5) | $ 10.3 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income (loss) | 82.3 | 82.1 | 82.1 | 0.2 | |||||||
Other comprehensive income (loss), net | 0.6 | 0.8 | 0.8 | (0.2) | |||||||
Stock-based compensation expense | 6.8 | 6.8 | 6.8 | ||||||||
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 | (5.2) | (5.2) | (5.2) | ||||||||
Dividends attributable to noncontrolling interests | (1) | (1) | |||||||||
Ending balance (in shares) at Jun. 29, 2019 | 42,600,000 | ||||||||||
Ending balance at Jun. 29, 2019 | 1,038.1 | $ 0.4 | 1,669.4 | (192) | (429.9) | (19.1) | 1,028.8 | 9.3 | |||
Beginning balance (in shares) at Mar. 30, 2019 | 42,500,000 | ||||||||||
Beginning balance at Mar. 30, 2019 | 964.1 | $ 0.4 | 1,665.8 | (254.6) | (439.4) | (19) | 953.2 | 10.9 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income (loss) | 62.2 | 62.6 | 62.6 | (0.4) | |||||||
Other comprehensive income (loss), net | 9.3 | 9.5 | 9.5 | (0.2) | |||||||
Stock-based compensation expense | 3.6 | 3.6 | 3.6 | ||||||||
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 | (0.1) | (0.1) | (0.1) | ||||||||
Dividends attributable to noncontrolling interests | (1) | (1) | |||||||||
Ending balance (in shares) at Jun. 29, 2019 | 42,600,000 | ||||||||||
Ending balance at Jun. 29, 2019 | $ 1,038.1 | $ 0.4 | 1,669.4 | (192) | (429.9) | (19.1) | 1,028.8 | 9.3 | |||
Beginning balance (in shares) at Dec. 31, 2019 | 42,566,884 | 42,600,000 | |||||||||
Beginning balance at Dec. 31, 2019 | $ 873.1 | $ 0.4 | 1,677 | (369.2) | (426.5) | (19.3) | 862.4 | 10.7 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income (loss) | (30.1) | (30.4) | (30.4) | 0.3 | |||||||
Other comprehensive income (loss), net | (34.4) | (34) | (34) | (0.4) | |||||||
Stock-based compensation expense | 7.8 | 7.8 | 7.8 | ||||||||
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 | (6.8) | 0.1 | (6.9) | (6.8) | |||||||
Common stock repurchases (in shares) | (200,000) | ||||||||||
Common stock repurchases | (6.2) | (6.2) | (6.2) | ||||||||
Dividends attributable to noncontrolling interests | (1.4) | (1.4) | |||||||||
Adjustment from mezzanine equity | 1.7 | 1.7 | 1.7 | ||||||||
Disposition of discontinued operations | $ 177 | 178.2 | 178.2 | (1.2) | |||||||
Ending balance (in shares) at Jun. 27, 2020 | 42,464,050 | 42,500,000 | |||||||||
Ending balance at Jun. 27, 2020 | $ 980.7 | $ 0.4 | 1,686.6 | (399.6) | (282.3) | (32.4) | 972.7 | 8 | |||
Beginning balance (in shares) at Mar. 28, 2020 | 42,600,000 | ||||||||||
Beginning balance at Mar. 28, 2020 | 799.2 | $ 0.4 | 1,681 | (374.5) | (490.8) | (25.7) | 790.4 | 8.8 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income (loss) | (24.9) | (25.1) | (25.1) | 0.2 | |||||||
Other comprehensive income (loss), net | 30.5 | 30.3 | 30.3 | 0.2 | |||||||
Stock-based compensation expense | 3.8 | 3.8 | 3.8 | ||||||||
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 | (0.4) | 0.1 | (0.5) | (0.4) | |||||||
Common stock repurchases (in shares) | (195,000) | ||||||||||
Common stock repurchases | (6.2) | (6.2) | (6.2) | ||||||||
Adjustment from mezzanine equity | 1.7 | 1.7 | 1.7 | ||||||||
Disposition of discontinued operations | $ 177 | 178.2 | 178.2 | (1.2) | |||||||
Ending balance (in shares) at Jun. 27, 2020 | 42,464,050 | 42,500,000 | |||||||||
Ending balance at Jun. 27, 2020 | $ 980.7 | $ 0.4 | $ 1,686.6 | $ (399.6) | $ (282.3) | $ (32.4) | $ 972.7 | $ 8 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 27, 2020 | Jun. 29, 2019 | |
Cash flows from (used in) operating activities: | ||
Net income (loss) | $ (30.1) | $ 82.3 |
Less: Income (loss) from discontinued operations, net of tax | (36.7) | 56 |
Income from continuing operations | 6.6 | 26.3 |
Adjustments to reconcile income from continuing operations to net cash from (used in) operating activities: | ||
Restructuring and other related charges | 7.4 | 6.9 |
Asset impairment charges | 2.7 | 0 |
Deferred income taxes | 18.8 | 8.5 |
Depreciation and amortization | 20 | 19.4 |
Stock-based compensation | 7 | 6.2 |
Pension and other employee benefits | 0.7 | 1 |
Losses (gains) on asset sales and other, net | 0.4 | (0.2) |
Gain on change in fair value of investment in equity security | (5.3) | (7.8) |
Changes in operating assets and liabilities, net of effects from discontinued operations: | ||
Accounts receivable and other assets | 28.3 | 45.1 |
Contract assets and liabilities, net | 3.3 | (24) |
Inventories | (29.1) | (12.2) |
Accounts payable, accrued expenses and other | (63.6) | (45.9) |
Cash spending on restructuring actions | (4.7) | (3.3) |
Net cash from (used in) continuing operations | (7.5) | 20 |
Net cash from (used in) discontinued operations | (6.4) | 24.2 |
Net cash from (used in) operating activities | (13.9) | 44.2 |
Cash flows from (used in) investing activities: | ||
Proceeds from asset sales and other, net | 0.2 | 0.7 |
Capital expenditures | (11.8) | (12.5) |
Net cash used in continuing operations | (11.6) | (11.8) |
Net cash from (used in) discontinued operations (includes proceeds from disposition of $406.2, less cash and restricted cash disposed of $7.3, in the six months ended June 27, 2020) | 393.4 | (2.8) |
Net cash from (used in) investing activities | 381.8 | (14.6) |
Cash flows used in financing activities: | ||
Borrowings under amended and restated senior credit facilities | 0 | 122 |
Repayments of amended and restated senior credit facilities | 0 | (7) |
Borrowings under former senior credit facilities | 0 | 33 |
Repayments of former senior credit facilities | 0 | (173) |
Borrowings under former trade receivables financing arrangement | 0 | 54 |
Repayments of former trade receivables financing arrangement | 0 | (54) |
Repayments of purchase card program, net | (4.8) | (0.4) |
Borrowings under other financing arrangements | 0 | 0.6 |
Repayments of other financing arrangements | (0.3) | (2.8) |
Financing fees paid | 0 | (2.7) |
Purchases of common stock | (6.2) | 0 |
Minimum withholdings paid on behalf of employees for net share settlements, net | (6.8) | (5.2) |
Dividends paid to noncontrolling interests in subsidiary | (1.2) | (1) |
Net cash used in continuing operations | (19.3) | (36.5) |
Net cash used in discontinued operations | (0.3) | (0.2) |
Net cash used in financing activities | (19.6) | (36.7) |
Change in cash, cash equivalents and restricted cash due to changes in foreign currency exchange rates | 5.4 | (2.8) |
Net change in cash, cash equivalents and restricted cash | 353.7 | (9.9) |
Consolidated cash, cash equivalents and restricted cash, beginning of period | 303.4 | 214.3 |
Consolidated cash, cash equivalents and restricted cash, end of period | $ 657.1 | $ 204.4 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) - USD ($) $ in Millions | Jun. 27, 2020 | Jun. 29, 2019 |
Statement of Cash Flows [Abstract] | ||
Cash and cash equivalents | $ 657.1 | $ 186.7 |
Cash and cash equivalents included in assets of discontinued operations | 0 | 16.8 |
Restricted cash included in assets of discontinued operations | 0 | 0.9 |
Consolidated cash, cash equivalents and restricted cash | $ 657.1 | $ 204.4 |
CONDENSED CONSOLIDATED STATEM_7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Millions | 6 Months Ended |
Jun. 27, 2020USD ($) | |
Statement of Cash Flows [Abstract] | |
Net proceeds from disposition | $ 406.2 |
Cash disposed of | $ 7.3 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 27, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION General Matters SPX FLOW, Inc. and its consolidated subsidiaries (“SPX FLOW,” ‘‘the Company,’’ “we,” “us,” or “our”) operate in two business segments: the Food and Beverage segment and the Industrial segment. We prepared the condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim reporting. As permitted under those rules and regulations, certain footnotes or other financial information normally required by accounting principles generally accepted in the United States (“GAAP”) can be condensed or omitted. The financial statements represent our accounts after the elimination of intercompany transactions and, in our opinion, include the adjustments (consisting only of normal and recurring items) necessary for their fair presentation. We experienced the adverse impacts of the novel coronavirus pandemic (“COVID-19” or the “COVID-19 pandemic”) beginning in the first quarter of 2020 and these adverse impacts are expected to continue in the third and fourth quarters of 2020, and possibly longer. Despite the adverse impacts, there are no indications that the COVID-19 pandemic has resulted in a material decline in the carrying value of any assets, or a material change in the estimate of any contingent amounts, recorded in our condensed consolidated balance sheet as of June 27, 2020. However, there is uncertainty as to the duration and overall impact of the COVID-19 pandemic, which could result in an adverse material change in a future period to the estimates we have made related to the valuation of assets and contingent amounts, which could result in the impairment of certain assets or the recognition of costs due to increases in contingent amounts. Preparing financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from these estimates. The unaudited information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements contained in our 2019 Annual Report on Form 10-K. Interim results are not necessarily indicative of full year results and the condensed consolidated financial statements may not be indicative of the Company’s future performance. We have reclassified certain prior year amounts to conform to the current year presentation, including (1) the effects on results of continuing operations and discontinued operations of a change in legal entity from discontinued operations to continuing operations, which was reclassified during the fourth quarter of 2019, and (2) the borrowing under (repayments of) a purchase card program, separately from the presentation of borrowings under (repayments of) other financing arrangements, in our condensed consolidated statements of cash flow. Unless otherwise indicated, amounts provided in these Notes pertain to continuing operations. See Note 3 for information on discontinued operations and Note 4 for information on our reportable segments. 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 2020 are March 28, June 27, and September 26, compared to the respective March 30, June 29, and September 28, 2019 dates. We had one less day in the first quarter of 2020 and will have two more days in the fourth quarter of 2020 than in the respective 2019 periods. |
NEW ACCOUNTING PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jun. 27, 2020 | |
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. In June 2016, and as subsequently amended, the Financial Accounting Standards Board (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 held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. The adoption of this amendment by the Company effective January 1, 2020 did not have an impact on its condensed consolidated financial statements. We concluded that this amendment applies primarily to our “Accounts Receivable, net” balance, as we have not historically experienced, nor do we expect to experience, significant credit losses related to our “Contract Assets” or “Contract Liabilities” balances. The contracts underlying “Contract Assets” and “Contract Liabilities” balances, for which revenue is recognized over time, contain cancellation and payment clauses within their terms that generally serve to protect the Company in the event of a default by a customer. In addition, customers with whom these types of contracts are entered into are historically among the Company’s largest and such customers generally have more significant levels of financial resources than certain of our customers with whom contracts are recognized at a point in time. The Company performed an analysis of its accounts receivable collection history, evaluated the aging of accounts receivables outstanding as of the adoption date and considered the potential for changes in future collection experience, in assessing the application of the amendment and in concluding that the amendment had no impact on our allowance for uncollectible account receivables as of January 1, 2020, when compared to allowances recognized based on our previously existing allowance for uncollectible accounts receivable methodologies. 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. The adoption of this amendment by the Company effective January 1, 2020 did not have a significant impact on its condensed consolidated financial statements. In August 2018, the FASB issued an amendment to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). 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. The adoption of this amendment by the Company effective January 1, 2020 did not have a significant impact on its condensed consolidated financial statements. In August 2018, the FASB issued an amendment to modify the disclosure requirements related to defined benefit plans. This amendment removes, clarifies and adds certain disclosures required under current guidance. For example, the amendment removes the requirement to disclose the effects of a one-percentage point change in assumed health care cost trend rates on postretirement benefit obligations and service and interest cost components of periodic benefit costs, and requires an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. This amendment is effective for interim and annual reporting periods beginning after December 15, 2020, with early adoption permitted. The Company is evaluating the impact this amendment may have on its condensed consolidated financial statements. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 6 Months Ended |
Jun. 27, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS We report businesses 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. 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 narrowed 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 was that each business would, 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 the continued development of the divestiture process thereafter, and in accordance with the criteria described above, we reported the Disposal Group as “held-for-sale”, and as discontinued operations, initially as of the end of our second quarter of 2019. 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 condensed consolidated financial statements, reflect this presentation. In November 2019, we entered into a Purchase and Sale Agreement (the “Sale Agreement”) with an affiliate of Apollo Global Management, LLC (the “Buyer”), pursuant to which the Company agreed, indirectly through certain of its subsidiaries, to sell the businesses reflected as discontinued operations in the accompanying condensed consolidated financial statements to the Buyer for a gross purchase price of $475.0 (the “Transaction”). On March 30, 2020, the Company completed the sale of substantially all such businesses and received proceeds from the Buyer of $406.2, based on an estimate of certain adjustments to the gross purchase price as of the closing date and as discussed further below and, to a lesser extent, certain fees. Net of cash and restricted cash of $7.3 included in the net assets of the Disposal Group which were sold as of March 30, 2020, cash flows from investing activities for the six months ended June 27, 2020, reflect net proceeds of $398.9 from disposition of the Disposal Group. The consummation of the sale to the Buyer of a remaining business reflected as “Assets of Discontinued Operations” and “Liabilities of Discontinued Operations” in our condensed consolidated balance sheet as of June 27, 2020 and based in India, with an expected gross purchase price of $6.4, remains subject to local regulatory approvals but is expected to occur in the second half of 2020. The majority of the “Assets of Discontinued Operations” and “Liabilities of Discontinued Operations”, as well as cumulative foreign currency translation adjustment of $178.2 (previously included in the Company’s “Accumulated Other Comprehensive Loss” balance) and “Noncontrolling Interests” of $1.2, which were removed from our condensed consolidated balance sheet during the second quarter of 2020, equaled the net proceeds received upon consummation of the Transaction. The gross purchase price of $475.0, which includes the purchase price for the business based in India, was 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 included, 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 which expired at the closing date. We recorded a pre-tax loss on Disposal Group of $8.5 during our first quarter of 2020 to reduce the carrying value of the Disposal Group to our estimate of the net proceeds that were expected to be realized upon finalization of the purchase price with the Buyer (which is subject to a customary period of review between the parties as discussed below), 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 March 28, 2020. This loss was attributable primarily to a reduction in the U.S. dollar-denominated proceeds received from the Buyer, relative to the translated U.S. dollar-equivalent carrying values of certain non-U.S. businesses of the Disposal Group, located primarily in the U.K. and Europe, due to a strengthening of the U.S. dollar against the currencies of those businesses during the first quarter of 2020. As noted above, finalization of the purchase price with the Buyer is subject to a customary period of review between the parties, including of the levels of net working capital, cash and debt, and deductions as of the closing date. We recorded a pre-tax loss on Disposal Group of $2.0 during our second quarter of 2020 related to working capital adjustments and ongoing discussions with the Buyer. Our determination of the final settlement with the Buyer involves certain estimates and judgments based on, among other items, our interpretation and application of key terms of the Sale Agreement. As such, a change in the loss on disposal associated with the divestiture of the business could occur in a future period, including upon such finalization of the purchase price with the Buyer. 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. Concurrent with the closing of the Transaction, the parties entered 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 provides 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, and $1.5 of income from such services was recognized as a component of "Other Income, net" during the three and six months ended June 27, 2020. 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. The historical annual amount of such purchases by SPX FLOW businesses has varied at a level between approximately $8.0 and $9.0. 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 three and six months ended June 27, 2020 and June 29, 2019 was as follows: Three months ended Six months ended June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Revenues $ 0.7 $ 127.8 $ 111.4 $ 245.5 Cost of products sold (1) 0.5 86.0 75.8 172.6 Gross profit 0.2 41.8 35.6 72.9 Selling, general and administrative (1) 0.8 24.0 31.5 45.4 Intangible amortization (1) — 1.0 — 1.9 Loss on Disposal Group (2) 2.0 — 10.5 — Restructuring and other related charges — — 0.3 — Operating income (loss) (2.6) 16.8 (6.7) 25.6 Other expense, net — (0.4) (0.3) (1.0) Interest expense, net (3) — (3.3) (1.6) (6.4) Income (loss) from discontinued operations before income taxes (2.6) 13.1 (8.6) 18.2 Income tax benefit (provision) (4) (29.0) 37.8 (28.1) 37.8 Income (loss) from discontinued operations, net of tax (31.6) 50.9 (36.7) 56.0 Less: Income (loss) attributable to noncontrolling interests — (0.5) (0.1) (0.2) Income (loss) from discontinued operations, net of tax and noncontrolling interests $ (31.6) $ 51.4 $ (36.6) $ 56.2 (1) During the three and six months ended June 27, 2020, there was no depreciation of property, plant and equipment or amortization of intangible assets, related to our discontinued operations, as the assets of the Disposal Group were classified as held-for-sale for the period. Depreciation and amortization were recognized during the three and six months ended June 29, 2019, as the assets of the Disposal Group were initially classified as held-for-sale as of the end of the second quarter of 2019. (2) See previous paragraphs for further discussion regarding the loss on Disposal Group recognized during the three and six months ended June 27, 2020. (3) 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 $0.0 and $3.3 for the three months ended June 27, 2020 and June 29, 2019, respectively, and $1.6 and $6.4 for the six month periods then ended, 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 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. (4) During the three and six months ended June 27, 2020, we recorded an income tax provision of $29.0 and $28.1, respectively, on $2.6 and $8.6, respectively, of pre-tax loss from discontinued operations. Among other items, the income tax provision for the three months ended June 27, 2020 was impacted by income tax charges of (i) $32.1 composed of the U.S. tax expense on the tax gain on sale of Disposal Group entities sold by the U.S. parent and (ii) $1.6 in reduction of the benefit to be realized through the disposition of held-for-sale assets, which were partially offset by an income tax benefit of $4.9 related to a loss for global intangible low-taxed income purposes on the sale of certain non-U.S. entities. The significant non-U.S. sales of Disposal Group entities were in locations where local law did not require any gain to be taxed or permit any loss to result in a future benefit. In addition to these, the income tax provision for the six months ended June 27, 2020 also included the effect from the first quarter of 2020 that the majority of the pre-tax loss on Disposal Group was not deductible in the various jurisdictions where the sale of the Disposal Group will be recognized. As such, only $1.2 of tax benefit was recognized on the $8.6 pre-tax loss on Disposal Group. During the three and six months ended June 29, 2019, we recorded an income tax benefit of $37.8 on $13.1 and $18.2, respectively, of pre-tax income from discontinued operations. Among other items, the income tax benefits for these periods were impacted by a benefit of $40.6 resulting from basis differences that were expected to be realized through the disposition of the Disposal Group. The major classes of assets and liabilities, excluding intercompany balances, as they were excluded from the sale and were settled prior to closing, classified as held-for-sale in the accompanying condensed consolidated balance sheets, were as follows: June 27, 2020 December 31, 2019 ASSETS Current assets: Cash and equivalents $ — $ 3.1 Accounts receivable, net 2.0 99.4 Contract assets — 43.0 Inventories, net 1.0 72.8 Other current assets 0.6 12.9 Total current assets 3.6 231.2 Property, plant and equipment, net 0.5 87.4 Goodwill 2.0 194.9 Intangibles, net — 92.3 Other assets — 59.2 Total long-term assets (1) 2.5 433.8 Total assets, before valuation allowance 6.1 665.0 Less: valuation allowance (2) (2.0) (201.0) TOTAL ASSETS, net of valuation allowance (1) $ 4.1 $ 464.0 LIABILITIES Current liabilities: Accounts payable $ 1.0 $ 46.6 Contract liabilities 0.1 43.6 Accrued expenses 0.6 52.6 Income taxes payable — 1.6 Current maturities of long-term debt — 0.5 Total current liabilities 1.7 144.9 Long-term debt — 3.6 Deferred and other income taxes — 13.6 Other long-term liabilities — 58.4 Total long-term liabilities (1) — 75.6 TOTAL LIABILITIES (1) $ 1.7 $ 220.5 (1) The total assets and liabilities of discontinued operations are classified in current assets and liabilities, respectively, in our condensed consolidated balance sheets as of June 27, 2020 and December 31, 2019, as the disposition of the Disposal Group occurred, or was expected to occur, within twelve months of each respective date. The consummation of the sale to the Buyer of a remaining business reflected as discontinued operations as of June 27, 2020 and based in India, with an expected gross purchase price of $6.4, remains subject to local regulatory approvals but is expected to occur in the second half of 2020. (2) See previous paragraphs for further discussion regarding the valuation allowance recorded as of June 27, 2020 and 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 six months ended June 27, 2020 and June 29, 2019: Six months ended June 27, 2020 June 29, 2019 Loss on Disposal Group (1) $ 10.5 $ — Depreciation and amortization (2) — 7.8 Capital expenditures (5.5) (2.8) Proceeds on disposition of Disposal Group (3) 398.9 — (1) See previous paragraphs for further discussion regarding the loss on Disposal Group recognized during the six months ended June 27, 2020. (2) As noted above, during the six months ended June 27, 2020, there was no depreciation of property, plant and equipment or amortization of intangible assets, related to our discontinued operations, as the assets of the Disposal Group were classified as held-for-sale for the period. Depreciation and amortization were recognized during the six months ended June 29, 2019, as the assets of the Disposal Group were initially classified as held-for-sale as of the end of the second quarter of 2019. (3) As noted above, proceeds of $406.2 were received from the Buyer during the six months ended June 27, 2020. Net of cash and restricted cash of $7.3 included in the net assets of the Disposal Group which were sold as of March 30, 2020, cash flows of $398.9 were realized upon disposition of the Disposal Group (excluding consummation of the sale of a business based in India, as noted above). |
INFORMATION ON REPORTABLE SEGME
INFORMATION ON REPORTABLE SEGMENTS, CORPORATE EXPENSE AND OTHER | 6 Months Ended |
Jun. 27, 2020 | |
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 the second quarter of 2019, we aggregated our operating segments into three reportable segments. In connection with the closing of the Transaction in the second quarter 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 3 ) 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 Financial Accounting Standards Board Codification (the “Codification”) to operating income or loss of each segment before considering asset impairment charges, restructuring and other related charges, pension and postretirement service costs and other indirect corporate expenses (including corporate stock-based compensation). This is consistent with the way our chief operating decision maker evaluates the results of each segment. Food and Beverage The Food and Beverage reportable segment operates in a regulated, global industry with customers who demand highly engineered, 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, 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, North Carolina corporate headquarters and our Asia Pacific center in Shanghai, China. Corporate expense also reflects stock-based compensation costs associated with corporate employees. Reportable Segment Financial Data Financial data for our reportable segments for the three and six months ended June 27, 2020 and June 29, 2019 were as follows: Three months ended Six months ended June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Revenues: Food and Beverage $ 144.7 $ 178.6 $ 282.5 $ 351.1 Industrial 163.4 206.8 315.1 407.7 Total revenues $ 308.1 $ 385.4 $ 597.6 $ 758.8 Income: Food and Beverage $ 19.1 $ 14.0 $ 38.5 $ 32.5 Industrial 19.9 30.7 29.3 59.2 Total income for reportable segments 39.0 44.7 67.8 91.7 Corporate expense (1) 19.0 12.9 34.5 26.7 Pension and postretirement service costs 0.2 0.2 0.4 0.4 Asset impairment charges (2) 0.8 — 2.7 — Restructuring and other related charges 4.8 1.9 7.4 6.9 Consolidated operating income $ 14.2 $ 29.7 $ 22.8 $ 57.7 (1) Includes $0.0 and $1.5 for the three months ended June 27, 2020 and June 29, 2019, respectively, and $2.4 and $3.1 for the six months then ended, 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 remained employees of SPX FLOW upon the disposition of the discontinued operations. (2) Asset impairment charges of $0.8, during the three months ended June 27, 2020, resulted from management’s decision to consolidate and relocate the operations of a U.S. manufacturing facility within the Industrial reportable segment to existing facilities in the U.S. as well as in our EMEA and APAC regions. Charges for the six months ended June 27, 2020 included these charges as well as asset impairment charges of $1.9 which resulted from management’s decision, during the first quarter of 2020, to discontinue a product line within the Industrial reportable segment. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 6 Months Ended |
Jun. 27, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | REVENUE FROM CONTRACTS WITH CUSTOMERS Information regarding the nature, amount, timing and uncertainty of revenue, and the related cash flows, is noted in further detail below. Revenues recognized over time: The following table provides revenues recognized over time by reportable segment for the three and six months ended June 27, 2020 and June 29, 2019: Three months ended Six months ended June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Revenues recognized over time: Food and Beverage $ 56.1 $ 73.2 $ 101.1 $ 153.0 Industrial 9.7 10.9 15.7 29.5 Total revenues recognized over time $ 65.8 $ 84.1 $ 116.8 $ 182.5 Disaggregated Information about Revenues: Our aftermarket revenues generally include sales of parts and service/maintenance support, and original equipment (“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 three and six months ended June 27, 2020 and June 29, 2019: Three months ended June 27, 2020 Three months ended June 29, 2019 Original Equipment Aftermarket Total Revenues Original Equipment Aftermarket Total Revenues Food and Beverage $ 89.2 (1) $ 55.5 $ 144.7 $ 116.9 (1) $ 61.7 $ 178.6 Industrial 104.0 59.4 163.4 139.5 67.3 206.8 Total revenues $ 193.2 $ 114.9 $ 308.1 $ 256.4 $ 129.0 $ 385.4 (1) Includes $46.5 and $62.4 for the three months ended June 27, 2020 and June 29, 2019, respectively, of revenue realized from the sale of highly engineered Food and Beverage systems. Six months ended June 27, 2020 Six months ended June 29, 2019 Original Equipment Aftermarket Total Revenues Original Equipment Aftermarket Total Revenues Food and Beverage $ 170.0 (1) $ 112.5 $ 282.5 $ 229.5 (1) $ 121.6 $ 351.1 Industrial 198.9 116.2 315.1 276.9 130.8 407.7 Total revenues $ 368.9 $ 228.7 $ 597.6 $ 506.4 $ 252.4 $ 758.8 (1) Includes $84.4 and $125.0 for the six months ended June 27, 2020 and June 29, 2019, respectively, of revenue realized from the sale of highly engineered Food and Beverage systems. Contract Balances: Our contract accounts receivable, assets and liabilities, and changes in such balances, were as follows: June 27, 2020 December 31, 2019 Change (1) Contract accounts receivable (2) $ 207.8 $ 231.9 $ (24.1) Contract assets 28.7 27.3 1.4 Contract liabilities (120.1) (116.3) (3.8) Net contract balance $ 116.4 $ 142.9 $ (26.5) (1) The $26.5 decrease in our net contract balance from December 31, 2019 to June 27, 2020 was primarily due to a reduction in volume of revenues recognized at a point in time, partially due to the effects of the COVID-19 pandemic during the six months ended June 27, 2020, as well as 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 condensed consolidated balance sheets. Amounts are presented before consideration of the allowance for uncollectible accounts. During the three months ended June 27, 2020 and June 29, 2019, we recognized revenues of $28.1 and $24.3 related to contract liabilities outstanding as of December 31, 2019 and 2018, respectively. During the six months ended June 27, 2020 and June 29, 2019, we recognized revenues of $70.6 and $76.8 related to contract liabilities outstanding as of December 31, 2019 and 2018, respectively. Contract Costs: As of June 27, 2020 and December 31, 2019, 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 the accompanying condensed consolidated balance sheets. Remaining Performance Obligations: As of June 27, 2020 and June 29, 2019, the aggregate amount of our remaining performance obligations was $546.3 and $527.6, respectively. The Company expects to recognize revenue on approximately 93% and substantially all of our remaining performance obligations outstanding as of June 27, 2020 within the next 12 and 24 months, respectively. |
LEASES
LEASES | 6 Months Ended |
Jun. 27, 2020 | |
Leases [Abstract] | |
Leases | LEASES Information regarding our operating and finance lease right-of-use (“ROU”) assets and liabilities, expense, cash flows and non-cash activities, future lease payments and key assumptions used in accounting for such leases, is noted in further detail below. The components of operating and finance lease ROU assets and liabilities as of June 27, 2020 and December 31, 2019 were as follows: June 27, 2020 December 31, 2019 Balance Sheet Caption in Which Balance is Reported Finance lease ROU assets $ 0.4 $ 0.5 Property, plant and equipment, net Operating lease ROU assets 45.5 48.8 Other assets Current portion of operating lease liabilities 15.6 15.4 Accrued expenses Current portion of finance lease liabilities 0.1 0.1 Current maturities of long-term debt Long-term finance lease liabilities 0.4 0.5 Long-term debt Long-term operating lease liabilities 36.9 40.4 Other long-term liabilities The components of lease expense for the three and six months ended June 27, 2020 and June 29, 2019 were as follows: Three months ended Six months ended June 27, 2020 (1) June 29, 2019 (1) June 27, 2020 (1) June 29, 2019 (1) Operating lease cost (2) $ 4.3 $ 4.2 9.1 $ 9.2 Short-term lease cost (2) 0.9 0.9 1.4 1.2 Variable lease cost (2) 0.1 0.1 0.2 0.5 Total lease cost $ 5.3 $ 5.2 $ 10.7 $ 10.9 (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 three and six months ended June 27, 2020 and June 29, 2019. (2) Included in “Cost of products sold” and “Selling, general and administrative” in our condensed consolidated statements of operations. The future lease payments under operating and finance leases with initial remaining terms in excess of one year as of June 27, 2020 were as follows: Year Ending December 31, Operating leases Finance leases Total 2020 $ 7.9 $ 0.1 $ 8.0 2021 13.4 0.2 13.6 2022 9.8 0.1 9.9 2023 7.5 0.1 7.6 2024 6.3 0.1 6.4 2025 3.8 — 3.8 Thereafter 10.2 — 10.2 Total lease payments 58.9 0.6 59.5 Less: interest (6.4) (0.1) (6.5) Present value of lease liabilities $ 52.5 $ 0.5 $ 53.0 Key assumptions used in accounting for our operating and finance leases as of June 27, 2020 and December 31, 2019 were as follows: June 27, 2020 December 31, 2019 Weighted-average remaining lease term (years): Operating leases 5.7 6.0 Finance leases 4.1 4.3 Weighted-average discount rate: Operating leases 4.33 % 4.49 % Finance leases 5.33 % 5.32 % Cash flows and non-cash activities related to our operating and finance leases for the six months ended June 27, 2020 and June 29, 2019 were as follows: Six months ended June 27, 2020 June 29, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid for operating leases $ 8.7 $ 9.5 Operating cash flows paid for finance leases — — Financing cash flows paid for finance leases 0.1 0.1 Non-cash activities: Operating lease ROU assets obtained in exchange for new operating lease liabilities 3.0 2.5 Finance lease ROU assets obtained in exchange for new finance lease liabilities — 0.3 |
Leases | LEASES Information regarding our operating and finance lease right-of-use (“ROU”) assets and liabilities, expense, cash flows and non-cash activities, future lease payments and key assumptions used in accounting for such leases, is noted in further detail below. The components of operating and finance lease ROU assets and liabilities as of June 27, 2020 and December 31, 2019 were as follows: June 27, 2020 December 31, 2019 Balance Sheet Caption in Which Balance is Reported Finance lease ROU assets $ 0.4 $ 0.5 Property, plant and equipment, net Operating lease ROU assets 45.5 48.8 Other assets Current portion of operating lease liabilities 15.6 15.4 Accrued expenses Current portion of finance lease liabilities 0.1 0.1 Current maturities of long-term debt Long-term finance lease liabilities 0.4 0.5 Long-term debt Long-term operating lease liabilities 36.9 40.4 Other long-term liabilities The components of lease expense for the three and six months ended June 27, 2020 and June 29, 2019 were as follows: Three months ended Six months ended June 27, 2020 (1) June 29, 2019 (1) June 27, 2020 (1) June 29, 2019 (1) Operating lease cost (2) $ 4.3 $ 4.2 9.1 $ 9.2 Short-term lease cost (2) 0.9 0.9 1.4 1.2 Variable lease cost (2) 0.1 0.1 0.2 0.5 Total lease cost $ 5.3 $ 5.2 $ 10.7 $ 10.9 (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 three and six months ended June 27, 2020 and June 29, 2019. (2) Included in “Cost of products sold” and “Selling, general and administrative” in our condensed consolidated statements of operations. The future lease payments under operating and finance leases with initial remaining terms in excess of one year as of June 27, 2020 were as follows: Year Ending December 31, Operating leases Finance leases Total 2020 $ 7.9 $ 0.1 $ 8.0 2021 13.4 0.2 13.6 2022 9.8 0.1 9.9 2023 7.5 0.1 7.6 2024 6.3 0.1 6.4 2025 3.8 — 3.8 Thereafter 10.2 — 10.2 Total lease payments 58.9 0.6 59.5 Less: interest (6.4) (0.1) (6.5) Present value of lease liabilities $ 52.5 $ 0.5 $ 53.0 Key assumptions used in accounting for our operating and finance leases as of June 27, 2020 and December 31, 2019 were as follows: June 27, 2020 December 31, 2019 Weighted-average remaining lease term (years): Operating leases 5.7 6.0 Finance leases 4.1 4.3 Weighted-average discount rate: Operating leases 4.33 % 4.49 % Finance leases 5.33 % 5.32 % Cash flows and non-cash activities related to our operating and finance leases for the six months ended June 27, 2020 and June 29, 2019 were as follows: Six months ended June 27, 2020 June 29, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid for operating leases $ 8.7 $ 9.5 Operating cash flows paid for finance leases — — Financing cash flows paid for finance leases 0.1 0.1 Non-cash activities: Operating lease ROU assets obtained in exchange for new operating lease liabilities 3.0 2.5 Finance lease ROU assets obtained in exchange for new finance lease liabilities — 0.3 |
RESTRUCTURING AND OTHER RELATED
RESTRUCTURING AND OTHER RELATED CHARGES | 6 Months Ended |
Jun. 27, 2020 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING AND OTHER RELATED CHARGES | RESTRUCTURING AND OTHER RELATED CHARGES Restructuring and other related charges for the three and six months ended June 27, 2020 and June 29, 2019 were as follows: Three months ended Six months ended June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Food and Beverage $ 1.5 $ 1.8 $ 2.0 $ 6.2 Industrial 2.8 0.1 4.6 0.7 Other 0.5 — 0.8 — Total $ 4.8 $ 1.9 $ 7.4 $ 6.9 Restructuring and Other Related Charges By Reportable Segment Food and Beverage — Charges for the three months ended June 27, 2020 related primarily to severance and other costs associated with a reduction in force of certain commercial employees based in our EMEA region. Charges for the six months ended June 27, 2020 related primarily to the above costs and, to a lesser extent, severance and other costs associated primarily with reductions in force of certain engineering, commercial and other functional support employees within the segment, across all regions in which the segment operates. Charges for the three months ended June 29, 2019 related primarily to severance and other costs associated with the closure of a facility in South America, partially offset by a credit during the period related to a revision of estimates for previously recognized charges related to prior actions, initiated primarily during the fourth quarter of 2018, which impacted a business associated with the execution of large dry-dairy systems projects. Charges for the six months ended June 29, 2019 included these items as well as additional charges during the first quarter of 2019 related primarily to severance and other costs associated with the further rationalization of the dry-dairy systems project business. Industrial — Charges for the three months ended June 27, 2020 related primarily to severance and other costs associated with (1) the consolidation and relocation of the operations of a U.S. manufacturing facility to existing facilities in the U.S. as well as in our EMEA and APAC regions, (2) a reduction in force of certain commercial employees based in our EMEA region, (3) a reduction in force of certain functional support employees based primarily in EMEA, and (4) the closure of a legal entity based in Angola. Charges for the six months ended June 27, 2020 related to the above costs as well as severance and other costs associated primarily with reductions in force of certain engineering, commercial and other functional support employees within the segment, across all regions in which the segment operates. Charges for the six months ended June 29, 2019 related primarily to severance and other costs associated with certain operations personnel in the EMEA region. Other — Charges for the three months ended June 27, 2020 related primarily to severance costs associated with certain corporate functional support employees. Charges for the six months ended June 27, 2020 related to the above costs as well as severance and other costs associated with the rationalization of certain corporate support functions. The following is an analysis of our restructuring liabilities (included in “Accrued expenses” in our condensed consolidated balance sheets) for the six months ended June 27, 2020 and June 29, 2019: Six months ended June 27, 2020 June 29, 2019 Balance at beginning of year $ 7.6 $ 7.1 Restructuring and other related charges (1) 7.1 6.6 Utilization — cash (4.7) (3.3) Currency translation adjustment and other 0.5 0.1 Balance at end of period $ 10.5 $ 10.5 (1) Amounts that impacted restructuring and other related charges but not the restructuring liabilities included $0.3 of other related charges during the six months ended June 27, 2020 and June 29, 2019. |
INVENTORIES, NET
INVENTORIES, NET | 6 Months Ended |
Jun. 27, 2020 | |
Inventory Disclosure [Abstract] | |
INVENTORIES, NET | INVENTORIES, NET Inventories at June 27, 2020 and December 31, 2019 comprised the following: June 27, 2020 December 31, 2019 Finished goods $ 90.9 $ 82.5 Work in process 56.3 47.0 Raw materials and purchased parts 92.1 85.9 Total FIFO cost 239.3 215.4 Excess of FIFO cost over LIFO inventory value (7.3) (7.3) Total inventories $ 232.0 $ 208.1 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 June 27, 2020 and December 31, 2019. Other inventories are valued using the first-in, first-out (“FIFO”) method. |
GOODWILL, OTHER INTANGIBLE ASSE
GOODWILL, OTHER INTANGIBLE ASSETS AND ASSET IMPAIRMENT CHARGES | 6 Months Ended |
Jun. 27, 2020 | |
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 during the six months ended June 27, 2020 were as follows: December 31, 2019 Impairments Foreign Currency Translation and Other June 27, 2020 Food and Beverage $ 257.5 $ — $ (1.0) $ 256.5 Industrial (1) 287.6 — (0.6) 287.0 Total $ 545.1 $ — $ (1.6) $ 543.5 (1) The carrying amount of goodwill included $133.3 and $133.6 of accumulated impairments as of June 27, 2020 and December 31, 2019, respectively. We completed our annual impairment testing of goodwill (and indefinite-lived intangible assets that are not amortized) during the fourth quarter of 2019 and determined there were no impairments. The goodwill impairment tests indicated significant excess fair value over the carrying value of both of our reporting units. During the three and six months ended June 27, 2020, we evaluated whether a triggering event had occurred due to the effects of the COVID-19 pandemic. We do not expect the adverse impacts of the COVID-19 pandemic to significantly affect the assumptions underlying our long-term revenue and cash flow growth rates, operating models or business strategies, and the fair values of our reporting units continued to substantially exceed their respective carrying values as of June 27, 2020. Therefore, we do not consider the COVID-19 pandemic to be a triggering event to accelerate our annual impairment analysis and no impairment charges for goodwill or indefinite-lived intangible assets were recorded during the three and six months ended June 27, 2020. We will continue to monitor the effects of the COVID-19 pandemic on our business in future periods in order to reassess our conclusion reached as of June 27, 2020 that a triggering event has not occurred, including evaluating the assumptions utilized in our fourth quarter of 2019 annual impairment testing. Should those conclusions continue to apply throughout the remaining fiscal quarters of 2020, we will perform our annual impairment testing of goodwill (and indefinite-lived intangible assets that are not amortized), during the fourth quarter of 2020 in conjunction with our annual financial planning process. In performing that annual impairment testing, we will assess, among other items, order trends and the operating cash flow performance of our reporting units. Other Intangibles, Net Identifiable intangible assets were as follows: June 27, 2020 December 31, 2019 Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value Intangible assets with determinable lives: Customer relationships $ 124.4 $ (101.4) $ 23.0 $ 124.7 $ (97.5) $ 27.2 Technology 61.4 (47.9) 13.5 61.7 (46.6) 15.1 Patents 5.3 (4.4) 0.9 5.6 (4.5) 1.1 Other 8.0 (8.0) — 8.1 (8.1) — 199.1 (161.7) 37.4 200.1 (156.7) 43.4 Trademarks with indefinite lives 162.2 — 162.2 164.7 — 164.7 Total $ 361.3 $ (161.7) $ 199.6 $ 364.8 $ (156.7) $ 208.1 As of June 27, 2020, the net carrying value of intangible assets with determinable lives consisted of the following by reportable segment: $23.4 in Food and Beverage and $14.0 in Industrial. Trademarks with indefinite lives consisted of the following by reportable segment: $95.7 in Food and Beverage and $66.5 in Industrial. No intangible asset impairment charges were recorded during the six months ended June 27, 2020 or June 29, 2019. Changes in the gross carrying values of trademarks and other identifiable intangible assets during the six months ended June 27, 2020 related to foreign currency translation. Tangible Long-Lived Asset Impairment Charges As discussed in Note 4 , asset impairment charges of $0.8 during the three months ended June 27, 2020 resulted from management’s decision to consolidate and relocate the operations of a U.S. manufacturing facility within the Industrial reportable segment to existing facilities in the U.S. as well as in our EMEA and APAC regions. Such charges related to the real property and, to a lesser extent, certain machinery and equipment, of the facility. Charges for the six months ended June 27, 2020 include these charges as well as asset impairment charges of $1.9 during the three months ended March 28, 2020 which resulted from management’s decision, within the first quarter of 2020, to discontinue a product line within the Industrial reportable segment. Such charges related to certain machinery and equipment of the segment. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 6 Months Ended |
Jun. 27, 2020 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS SPX FLOW sponsors a number of defined benefit pension plans and a postretirement plan. For all of these plans, changes in the fair value of plan assets and actuarial gains and losses are recognized to earnings in the fourth quarter of each year, unless earlier remeasurement is required. The remaining components of pension and postretirement expense, primarily service and interest costs and expected return on plan assets, are recorded on a quarterly basis. Components of Net Periodic Pension and Postretirement Benefit Expense Net periodic benefit expense for our foreign pension plans and our domestic pension and postretirement plans for the three and six months ended June 27, 2020 and June 29, 2019 included the following components: Foreign Pension Plans Domestic Pension and Postretirement Plans Total Statement of Operations Caption in Which Expense is Reported Three months ended June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Service cost $ 0.2 0.2 $ — $ — $ 0.2 $ 0.2 Selling, general and administrative Interest cost 0.1 0.1 — 0.1 0.1 0.2 Other income, net Recognized net actuarial loss (1) — — — 0.2 — 0.2 Other income, net Total net periodic benefit expense $ 0.3 $ 0.3 $ — $ 0.3 $ 0.3 $ 0.6 Foreign Pension Plans Domestic Pension and Postretirement Plans Total Statement of Operations Caption in Which Expense is Reported Six Months Ended June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Service cost $ 0.4 0.4 $ — $ — $ 0.4 $ 0.4 Selling, general and administrative Interest cost 0.2 0.2 0.1 0.2 0.3 0.4 Other income, net Recognized net actuarial loss (1) — — — 0.2 — 0.2 Other income, net Total net periodic benefit expense $ 0.6 $ 0.6 $ 0.1 $ 0.4 $ 0.7 $ 1.0 (1) For the three and six months ended June 29, 2019, the $0.2 charge reflects the effects of a partial settlement and remeasurement of our domestic pension plan, resulting from the lump sum payment of a former officer’s pension obligation during the second quarter of 2019. Employer Contributions |
INDEBTEDNESS
INDEBTEDNESS | 6 Months Ended |
Jun. 27, 2020 | |
Debt Disclosure [Abstract] | |
INDEBTEDNESS | INDEBTEDNESS Debt at June 27, 2020 and December 31, 2019 was comprised of the following: June 27, 2020 December 31, 2019 Term loan, due in June 2022 $ 100.0 $ 100.0 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 (1) 16.2 21.3 Less: deferred financing fees (2) (6.1) (6.8) Total debt 710.1 714.5 Less: short-term debt 15.7 20.7 Less: current maturities of long-term debt 0.1 0.1 Total long-term debt $ 694.3 $ 693.7 (1) Primarily includes finance lease obligations of $0.5 and $0.6 and balances under a purchase card program of $15.6 and $20.4 as of June 27, 2020 and December 31, 2019, respectively. The purchase card program allows for payment beyond customary payment terms for goods and services acquired under the program. As this arrangement extends the payment of these purchases beyond their normal payment terms through third-party lending institutions, we have classified these amounts as short-term debt. (2) Deferred financing fees were comprised of fees related to the term loan and senior notes. A detailed description of our senior credit facilities and senior notes is included in our consolidated financial statements included in our 2019 Annual Report on Form 10-K. The weighted-average interest rate of outstanding borrowings under our senior credit facilities was approximately 1.6% and 3.1% at June 27, 2020 and December 31, 2019, respectively. At June 27, 2020, we had $494.1 of borrowing capacity under our revolving credit facilities after giving effect to $5.9 reserved for outstanding letters of credit. In addition, at June 27, 2020, we had $90.3 of available issuance capacity under our foreign credit instrument facilities after giving effect to $59.7 reserved for outstanding bank guarantees. In addition, we had $5.1 of bank guarantees outstanding under the senior credit facilities that, once satisfied, cannot be reissued. At June 27, 2020, in addition to the revolving lines of credit described above, we had approximately $8.5 of letters of credit outstanding under separate arrangements in China and India. At June 27, 2020, we were in compliance with all covenants of our senior credit facilities and senior notes. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 27, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS We manufacture and sell our products in a number of countries and, as a result, are exposed to movements in foreign currency ( “ FX ” ) exchange rates. Our objective is to preserve the economic value of non-functional currency-denominated cash flows and to minimize the impact of changes as a result of currency fluctuations. Our principal currency exposures relate to the Euro, Chinese Yuan and British Pound. We had FX forward contracts with an aggregate notional amount of $33.6 and $83.3 outstanding as of June 27, 2020 and December 31, 2019, respectively, with all such contracts scheduled to mature within one year. We also had FX embedded derivatives with an aggregate notional amount of $2.5 and $0.9 at June 27, 2020 and December 31, 2019, respectively, with all such contracts scheduled to mature within one year. There were unrealized losses of $0.0 and $0.2, net of taxes, recorded in accumulated other comprehensive loss related to FX forward contracts as of June 27, 2020 and December 31, 2019, respectively. The net losses recorded in “ Other income, net ” related to FX losses totaled $1.0 and $0.0 for the three months ended June 27, 2020 and June 29, 2019, respectively, and $1.8 and $0.6 for the six months then ended. We enter into arrangements designed to provide the right of setoff in the event of counterparty default or insolvency, and have elected to offset the fair values of our FX forward contracts in our condensed consolidated balance sheets. The gross fair values of our FX forward contracts and FX embedded derivatives, in aggregate, were $0.0 and $0.3 (gross assets) and $0.0 and $0.0 (gross liabilities) at June 27, 2020 and December 31, 2019, respectively. |
EQUITY AND STOCK-BASED COMPENSA
EQUITY AND STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 27, 2020 | |
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: Three months ended Six months ended June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Weighted-average shares outstanding, basic 42.397 42.368 42.524 42.410 Dilutive effect of share-based awards 0.108 0.249 0.179 0.187 Weighted-average shares outstanding, dilutive (1) 42.505 42.617 42.703 42.597 (1) Unvested restricted stock shares/units not included in the computation of diluted income per share because required market thresholds for vesting (as discussed below) were not met, were 0.154 and 0.151 for the three months ended June 27, 2020 and June 29, 2019, respectively, and 0.123 and 0.156 for the six months then ended, respectively. Unvested restricted stock shares/units not included in the computation of diluted income per share because required internal performance thresholds for vesting (as discussed below) were not met, were 0.215 and 0.119 for the three months ended June 27, 2020 and June 29, 2019, respectively, and 0.193 and 0.129 for the six months then ended, respectively. Stock options outstanding excluded from the computation of diluted income per share because their exercise price was greater than the average market price of common shares, were 0.342 for the three and six months ended June 27, 2020 and June 29, 2019. Stock-Based Compensation SPX FLOW stock-based compensation awards may be granted to certain eligible employees or non-employee directors under the SPX FLOW Stock Compensation Plan (the “Stock Plan”). Under the Stock Plan, up to 2.123 unissued shares of our common stock were available for future grant as of June 27, 2020. The Stock Plan permits the issuance of authorized but unissued shares or shares from treasury upon the vesting of restricted stock units, granting of restricted stock shares or exercise of stock options. Each restricted stock share, restricted stock unit and stock option granted reduces share availability under the Stock Plan by one share. Restricted stock shares or restricted stock units may be granted to certain eligible employees or non-employee directors in accordance with the Stock Plan and applicable award agreements. Subject to participants' continued service and other award terms and conditions, the restrictions lapse and awards generally vest over a period of time, generally three years (or one year for awards to non-employee directors). In some instances, such as death, disability, or retirement, awards may vest concurrently with or following an employee's termination. Approximately half of such restricted stock shares and restricted stock unit awards vest based on performance thresholds, while the remaining portion vest based on the passage of time since grant date. Eligible employees, including officers, were granted 2020 target performance awards, primarily during the three months ended March 28, 2020, in which the employee can earn between 50% and 200% of the target performance award in the event, and to the extent, the award meets the required performance vesting criteria. Such awards are generally subject to the employees’ continued employment during the three-year vesting period, and may be completely forfeited if the threshold performance criteria are not met. Vesting for the 2020 target performance awards is based on SPX FLOW shareholder return versus the performance of a composite group of companies, as established under the awards (the “ Composite Group ” ), over the three-year period from January 1, 2020 through December 31, 2022. In addition, certain eligible employees, including officers, were granted 2020 target performance awards primarily during the three months ended March 28, 2020 that vest subject to attainment of stated improvements in a three-year average annual return on invested capital (as defined under the awards) measured at the conclusion of the measurement period ending December 31, 2022 (including eligible employees’ continued employment during the measurement period). These target performance awards were issued as restricted stock units to eligible employees, including officers. In the event of vesting, the 2020 target performance awards generally restrict the recipient from selling, transferring, pledging or assigning the underlying shares for a one-year period, ending December 31, 2023. Eligible employees, including officers, also were granted 2020 awards, primarily during the three months ended March 28, 2020, that vest ratably over three years, subject to the passage of time and the employees’ continued employment during such period. In some instances, such as death, disability, or retirement, awards may vest concurrently with or following an employee's termination. These awards were issued as restricted stock units to eligible employees, including officers. In accordance with terms of the Sale Agreement entered into with the Buyer, all awards granted to SPX FLOW employees who became employees of the Buyer upon closing of the Transaction on March 30, 2020, 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, vested as of March 30, 2020. 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, vested according to the terms of the underlying award agreements (including continued employment during the measurement period). All other outstanding share-based awards to SPX FLOW employees who became employees of the Buyer that did not vest under these conditions, were forfeited as of March 30, 2020. Restricted stock unit awards granted to eligible employees, including officers, primarily during the three months ended March 28, 2020, include early retirement provisions which permit recipients to be eligible for vesting generally upon reaching the age of 60 and completing ten years of service (and, if applicable, subject to the attainment of performance measures). Restricted stock units that do not vest within the applicable vesting period are forfeited. Stock options may be granted to eligible employees in the form of incentive stock options or nonqualified stock options. The option price per share may be no less than the fair market value of our common stock at the close of business on the date of grant. Upon exercise, the employee has the option to surrender previously owned shares at current value in payment of the exercise price and/or for withholding tax obligations. The recognition of compensation expense for share-based awards is based on their grant-date fair values. The fair value of each award is amortized over the lesser of the award's requisite or derived service period, which is generally up to three years as noted above. For the three and six months ended June 27, 2020 and June 29, 2019, we recognized compensation expense related to share-based programs in “Selling, general and administrative” expense in the accompanying condensed consolidated statements of operations as follows: Three months ended Six months ended June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Stock-based compensation expense - continuing and discontinued operations $ 3.8 $ 3.6 7.8 6.8 Less: stock-based compensation expense recognized in discontinued operations — 0.3 0.8 0.6 Stock-based compensation expense recognized in continuing operations 3.8 3.3 7.0 6.2 Income tax benefit (0.8) (0.7) (1.6) (1.4) Stock-based compensation expense, net of income tax benefit $ 3.0 $ 2.6 $ 5.4 $ 4.8 Restricted Stock Unit Awards The Monte Carlo simulation model valuation technique was used to determine the fair value of our 2020 restricted stock units that contain a “market condition.” The Monte Carlo simulation model utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the award and calculates the fair value of each restricted stock unit award. The valuation of such 2020 awards also reflects an illiquidity discount of 14.6%, determined utilizing the Chafee model valuation technique, and related to the one-year period that recipients are restricted from selling, transferring, pledging or assigning the underlying shares, in the event of vesting and as discussed above. The following table summarizes the unvested restricted stock share and restricted stock unit activity for the six months ended June 27, 2020: Unvested Restricted Stock Shares and Restricted Stock Units Weighted-Average Grant-Date Fair Value Per Share Outstanding at December 31, 2019 0.999 $38.24 Granted 0.490 35.02 Vested (0.442) 37.19 Forfeited and other (0.037) 40.95 Outstanding at June 27, 2020 1.010 $37.03 As of June 27, 2020, there was $25.9 of unrecognized compensation cost related to restricted stock share and restricted stock unit compensation arrangements. We expect this cost to be recognized over a weighted-average period of 2.1 years. Stock Options There were 0.342 of SPX FLOW stock options outstanding as of June 27, 2020 and December 31, 2019, all of which were exercisable as of June 27, 2020. The weighted-average exercise price per share of the stock options is $61.29 and the weighted-average grant-date fair value per share is $19.33. The term of these options expires on January 2, 2025 (subject to earlier expiration upon a recipient's termination of service as provided under the awards). There was no unrecognized compensation cost related to these stock options as of June 27, 2020. Accumulated Other Comprehensive Loss Substantially all of accumulated other comprehensive loss (“AOCL”) as of June 27, 2020 and December 31, 2019 was foreign currency translation adjustment (there were unrealized losses of $0.0 and $0.2, net of taxes, recorded in AOCL related to FX forward contracts as of June 27, 2020 and December 31, 2019, respectively, as discussed in Note 12 ). See the condensed consolidated statements of comprehensive income (loss) for changes in AOCL for the three and six months ended June 27, 2020 and June 29, 2019, and Note 3 for further discussion regarding amounts reclassified out of AOCL during the three and six months ended June 27, 2020 in connection with the disposition of the Disposal Group. Common Stock in Treasury During the six months ended June 27, 2020 and June 29, 2019, “Common stock in treasury” was increased by $6.9 and $5.2, respectively, for common stock that was surrendered by recipients of restricted stock as a means of funding the related applicable income tax withholding requirements. |
LITIGATION, CONTINGENT LIABILIT
LITIGATION, CONTINGENT LIABILITIES AND OTHER MATTERS | 6 Months Ended |
Jun. 27, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
LITIGATION, CONTINGENT LIABILITIES AND OTHER MATTERS | LITIGATION, CONTINGENT LIABILITIES AND OTHER MATTERS Various claims, complaints and proceedings arising in the ordinary course of business, including those relating to litigation matters (e.g., class actions, derivative lawsuits and contracts, intellectual property and competitive claims, and claims to certain indemnification obligations arising from previous acquisitions/dispositions), have been filed or are pending against us and certain of our subsidiaries. We believe these matters are either without merit or of a kind that should not have a material effect, individually or in the aggregate, on our financial position, results of operations or cash flows. We are subject to domestic and international environmental protection laws and regulations with respect to our business operations and are operating in compliance with, or taking action aimed at ensuring compliance with, these laws and regulations. We believe our compliance obligations with environmental protection laws and regulations should not have a material effect, individually or in the aggregate, on our financial position, results of operations or cash flows. Mezzanine Equity Independent noncontrolling shareholders in certain foreign subsidiaries of the Company have put options under their respective joint venture operating agreements that allow them to sell their common stock to the controlling shareholders (wholly-owned subsidiaries of SPX FLOW) upon the satisfaction of certain conditions, including the passage of time. The respective carrying values presented in “ Mezzanine equity ” of our condensed consolidated balance sheets as of June 27, 2020 and December 31, 2019 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 16 . Of the $17.4 of current exercise value of the put options outstanding as of June 27, 2020, options with a value of $9.7 became exercisable during 2018 and, during the first quarter of 2020, the noncontrolling interest shareholder exercised such options. In accordance with the terms of the relevant joint venture operating agreement, the shares will legally transfer after we and the holder of such put options complete certain agreed-up procedures. The carrying value of the put options reflected in “Mezzanine equity” as of June 27, 2020 is recorded based on our best estimate of the ultimate redemption value of the put options. If and when such options are exercised, we expect to settle the transfer of shares in cash. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 27, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Unrecognized Tax Benefits As of June 27, 2020, we had gross unrecognized tax benefits of $16.0 (net unrecognized tax benefits of $15.0), of which $10.1, if recognized, would impact our effective tax rate from continuing operations. We classify interest and penalties related to unrecognized tax benefits as a component of our income tax provision. As of June 27, 2020, gross accrued interest totaled $0.7 (net accrued interest of $0.6), and there was no accrual for penalties included in our unrecognized tax benefits. Based on the outcome of certain examinations or as a result of the expiration of statutes of limitations for certain jurisdictions, we believe that within the next 12 months it is reasonably possible that our previously unrecognized tax benefits could decrease by $0.5 to $1.5. The previously unrecognized tax benefits relate to transfer pricing matters. The unrecognized tax benefits described above represent amounts that were included in tax returns filed by the Company. Historically, a portion of the Company's operations were included in tax returns filed by SPX Corporation (the “ former Parent ” ) or its subsidiaries that were not part of our spin-off from the former Parent effected on September 26, 2015 (the “ Spin-Off ” ). As a result, some uncertain tax positions related to the Company's operations resulted in unrecognized tax benefits that are now potential obligations of the former Parent or its subsidiaries that were part of the Spin-Off. In addition, some of the Company's tax returns included the operations of the former Parent's subsidiaries that were not part of the Spin-Off. In certain of these cases, these subsidiaries' activities gave rise to unrecognized tax benefits for which the Company could be potentially liable. When required under the Income Taxes Topic of the Codification, we have recorded a liability for these uncertain tax positions within our condensed consolidated balance sheets. Other Tax Matters During the three months ended June 27, 2020, we recorded an income tax provision of $3.9 on $10.6 of pre-tax income, resulting in an effective tax rate of 36.8%. This compares to an income tax provision for the three months ended June 29, 2019 of $11.5 on $22.8 of pre-tax income, resulting in an effective tax rate of 50.4%. The effective tax rate for the second quarter of 2020 was impacted by income tax charges of (i) $6.0 resulting from losses occurring in the quarter in certain jurisdictions where the tax benefit of those losses is not expected to be realized and (ii) $1.6 related to the change in valuation allowance related to certain jurisdictions where the benefit of losses are no longer expected to be realized, which were partially offset by an income tax benefit of $7.2 resulting from adjustments to the deemed repatriation tax and certain additional foreign credits from the recharacterization of a prior outbound transfer of an affiliate to non-U.S. entities. The effective tax rate for the second quarter of 2019 was impacted by charges of (i) $4.9 resulting from losses occurring in certain jurisdictions where the tax benefit of those losses is not expected to be realized and (ii) $5.1 resulting from the addition of a valuation allowance for certain subsidiaries for which the benefit of previously incurred losses is not expected to be realized, which were partially offset by benefits of (i) $2.0 resulting from an outside basis difference from continuing operations that was realized through the disposition of held-for-sale assets, (ii) $1.7 resulting from adjustments related to the German tax returns filed by certain of the Company’s subsidiaries and (iii) $1.0 resulting from the impact of a tax incentive received by one of the Company’s Chinese subsidiaries related to its 2018 tax return. During the six months ended June 27, 2020, we recorded an income tax provision of $3.0 on $9.6 of pre-tax income, resulting in an effective tax rate of 31.3%. This compares to an income tax provision for the six months ended June 29, 2019 of $22.2 on $48.5 of pre-tax income, resulting in an effective tax rate of 45.8%. The effective tax rate for the first six months of 2020 was impacted by income tax benefits of (i) $7.2 resulting from adjustments to the deemed repatriation tax and certain additional foreign credits from the recharacterization of a prior outbound transfer of an affiliate to non-U.S. entities and (ii) $1.2 resulting from tax return adjustments for certain of the Company’s subsidiaries, which were partially offset by income tax charges of (i) $6.6 resulting from losses occurring in the first six months of 2020 in certain jurisdictions where the tax benefit of those losses is not expected to be realized and (ii) $1.6 related to the change in valuation allowance related to certain jurisdictions where the benefit of losses are no longer expected to be realized. The effective tax rate for the first six months of 2019 was impacted by charges of (i) $7.0 resulting from losses occurring in certain jurisdictions where the tax benefit of those losses is not expected to be realized and (ii) $5.1 resulting from the addition of a valuation allowance for certain subsidiaries for which the benefit of previously incurred losses is not expected to be realized, which were partially offset by benefits of (i) $2.0 resulting from an outside basis difference from continuing operations that was realized through the disposition of held-for-sale assets, (ii) $1.7 resulting from adjustments related to the German tax returns filed by certain of the Company’s subsidiaries and (iii) $1.0 resulting from the impact of a tax incentive received by one of the Company’s Chinese subsidiaries related to its 2018 tax return. 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. 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. As discussed in Note 3 , the Sale Agreement with the Buyer of the Company’s Disposal Group 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. 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. During July 2020, the Department of Treasury issued several final regulations related to the Tax Cuts and Jobs Act, including those related to the Section 250 deduction, global intangible low-taxed income (“GILTI”) and the Section 163(j) interest limitation. We are evaluating the impact of these regulations on our income tax balances. |
FAIR VALUE
FAIR VALUE | 6 Months Ended |
Jun. 27, 2020 | |
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 June 27, 2020 and December 31, 2019, the gross fair values of our derivative financial assets and liabilities, in aggregate, were $0.0 and $0.3 (gross assets) and $0.0 and $0.0 (gross liabilities), respectively. As of June 27, 2020, 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 The estimated fair value of our investment in an equity security, utilizing a practical expedient under relevant accounting guidance, is based on our ownership percentage, applied to the equity security’s most recently determined net asset value. During the three and six months ended June 27, 2020, we recorded a gain of $5.3 to “Other income, net” in our accompanying condensed consolidated statements of operations to reflect an increase in the estimated fair value of the equity security. As of June 27, 2020 and December 31, 2019, the equity security had an estimated fair value of $27.1 and $21.8, respectively. We are restricted from transferring this investment without approval of the manager of the investee. The COVID-19 pandemic has recently had an adverse impact on the global financial markets. A prolonged adverse impact of the COVID-19 pandemic could result in a decline in the equity security’s estimated fair value and, thus, a resulting charge to earnings in a future period. During the three and six months ended June 29, 2019, we recorded gains of $1.6 and $7.8, respectively, to “Other income , net” to reflect an increase in the estimated fair value of the equity security. In addition, during the six months ended June 29, 2019, we received a distribution of $2.6, which is included within “Cash flows from operating activities” in our condensed consolidated statements of cash flows. 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 14 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 six months ended June 27, 2020, the Company recorded a pre-tax loss of $10.5 to reduce the carrying value of the net assets of its Disposal Group, including relevant foreign currency translation adjustment balances, to the net proceeds expected to be realized upon finalization of the purchase price with the Buyer (see Note 3 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 discontinued operations, the aggregate loss has been reflected as a valuation allowance against the total assets of the Disposal Group as of June 27, 2020. 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 June 27, 2020, 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 3 for further information regarding the loss on Disposal Group and the associated valuation allowance, and Note 9 for further information regarding goodwill and indefinite-lived intangible assets, and the Company’s consideration of the effects of the COVID-19 pandemic on its evaluation of the carrying values of such long-lived assets as of June 27, 2020. Indebtedness and Other The estimated fair values of other financial liabilities (excluding finance leases and deferred financing fees) not measured at fair value on a recurring basis as of June 27, 2020 and December 31, 2019 were as follows: June 27, 2020 December 31, 2019 Carrying Amount Fair Value Carrying Amount Fair Value Term loan (1) $ 100.0 $ 100.0 $ 100.0 $ 100.0 5.625% senior notes (1) 300.0 306.0 300.0 312.0 5.875% senior notes (1) 300.0 306.0 300.0 316.5 Other indebtedness 15.7 15.7 20.7 20.7 (1) Carrying amount reflected herein excludes related deferred financing fees. The following methods and assumptions were used in estimating the fair value of these financial instruments: • The fair values of the senior notes were determined using Level 2 inputs within the fair value hierarchy and were based on quoted market prices for the same or similar instruments or on current rates offered to us for debt with similar maturities, subordination and credit default expectations. • The fair value of amounts outstanding under our term loan approximated carrying value due primarily to the variable-rate nature and credit spread of this instrument, 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. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 6 Months Ended |
Jun. 27, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENT On July 16, 2020, the Company issued an irrevocable notice of redemption with respect to its 5.625% senior notes due in August 2024 (the “2024 Notes”) that it will redeem all of the outstanding 2024 Notes on August 15, 2020 (the “Redemption Date”). The 2024 Notes, which have an outstanding principal balance of $300.0 as described in Note 11 , will be redeemed in full pursuant to the redemption provisions of the indenture governing the 2024 Notes for a redemption price equal to approximately 102.8% of the principal amount thereof, plus accrued and unpaid interest to, but not including, the Redemption Date. The Company plans to fund the redemption using available cash. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 27, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | We prepared the condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim reporting. As permitted under those rules and regulations, certain footnotes or other financial information normally required by accounting principles generally accepted in the United States (“GAAP”) can be condensed or omitted. The financial statements represent our accounts after the elimination of intercompany transactions and, in our opinion, include the adjustments (consisting only of normal and recurring items) necessary for their fair presentation. We experienced the adverse impacts of the novel coronavirus pandemic (“COVID-19” or the “COVID-19 pandemic”) beginning in the first quarter of 2020 and these adverse impacts are expected to continue in the third and fourth quarters of 2020, and possibly longer. Despite the adverse impacts, there are no indications that the COVID-19 pandemic has resulted in a material decline in the carrying value of any assets, or a material change in the estimate of any contingent amounts, recorded in our condensed consolidated balance sheet as of June 27, 2020. However, there is uncertainty as to the duration and overall impact of the COVID-19 pandemic, which could result in an adverse material change in a future period to the estimates we have made related to the valuation of assets and contingent amounts, which could result in the impairment of certain assets or the recognition of costs due to increases in contingent amounts. Preparing financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from these estimates. The unaudited information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements contained in our 2019 Annual Report on Form 10-K. Interim results are not necessarily indicative of full year results and the condensed consolidated financial statements may not be indicative of the Company’s future performance. We have reclassified certain prior year amounts to conform to the current year presentation, including (1) the effects on results of continuing operations and discontinued operations of a change in legal entity from discontinued operations to continuing operations, which was reclassified during the fourth quarter of 2019, and (2) the borrowing under (repayments of) a purchase card program, separately from the presentation of borrowings under (repayments of) other financing arrangements, in our condensed consolidated statements of cash flow. Unless otherwise indicated, amounts provided in these Notes pertain to continuing operations. See Note 3 for information on discontinued operations and Note 4 for information on our reportable segments. 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 2020 are March 28, June 27, and September 26, compared to the respective March 30, June 29, and September 28, 2019 dates. We had one less day in the first quarter of 2020 and will have two more days in the fourth quarter of 2020 than in the respective 2019 periods. |
New Accounting Pronouncements | The following is a summary of new accounting pronouncements that apply or may apply to our business. In June 2016, and as subsequently amended, the Financial Accounting Standards Board (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 held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. The adoption of this amendment by the Company effective January 1, 2020 did not have an impact on its condensed consolidated financial statements. We concluded that this amendment applies primarily to our “Accounts Receivable, net” balance, as we have not historically experienced, nor do we expect to experience, significant credit losses related to our “Contract Assets” or “Contract Liabilities” balances. The contracts underlying “Contract Assets” and “Contract Liabilities” balances, for which revenue is recognized over time, contain cancellation and payment clauses within their terms that generally serve to protect the Company in the event of a default by a customer. In addition, customers with whom these types of contracts are entered into are historically among the Company’s largest and such customers generally have more significant levels of financial resources than certain of our customers with whom contracts are recognized at a point in time. The Company performed an analysis of its accounts receivable collection history, evaluated the aging of accounts receivables outstanding as of the adoption date and considered the potential for changes in future collection experience, in assessing the application of the amendment and in concluding that the amendment had no impact on our allowance for uncollectible account receivables as of January 1, 2020, when compared to allowances recognized based on our previously existing allowance for uncollectible accounts receivable methodologies. 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. The adoption of this amendment by the Company effective January 1, 2020 did not have a significant impact on its condensed consolidated financial statements. In August 2018, the FASB issued an amendment to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). 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. The adoption of this amendment by the Company effective January 1, 2020 did not have a significant impact on its condensed consolidated financial statements. In August 2018, the FASB issued an amendment to modify the disclosure requirements related to defined benefit plans. This amendment removes, clarifies and adds certain disclosures required under current guidance. For example, the amendment removes the requirement to disclose the effects of a one-percentage point change in assumed health care cost trend rates on postretirement benefit obligations and service and interest cost components of periodic benefit costs, and requires an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. This amendment is effective for interim and annual reporting periods beginning after December 15, 2020, with early adoption permitted. The Company is evaluating the impact this amendment may have on its condensed consolidated financial statements. |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Income (Loss) from Discontinued Operations | Income (loss) from discontinued operations for the three and six months ended June 27, 2020 and June 29, 2019 was as follows: Three months ended Six months ended June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Revenues $ 0.7 $ 127.8 $ 111.4 $ 245.5 Cost of products sold (1) 0.5 86.0 75.8 172.6 Gross profit 0.2 41.8 35.6 72.9 Selling, general and administrative (1) 0.8 24.0 31.5 45.4 Intangible amortization (1) — 1.0 — 1.9 Loss on Disposal Group (2) 2.0 — 10.5 — Restructuring and other related charges — — 0.3 — Operating income (loss) (2.6) 16.8 (6.7) 25.6 Other expense, net — (0.4) (0.3) (1.0) Interest expense, net (3) — (3.3) (1.6) (6.4) Income (loss) from discontinued operations before income taxes (2.6) 13.1 (8.6) 18.2 Income tax benefit (provision) (4) (29.0) 37.8 (28.1) 37.8 Income (loss) from discontinued operations, net of tax (31.6) 50.9 (36.7) 56.0 Less: Income (loss) attributable to noncontrolling interests — (0.5) (0.1) (0.2) Income (loss) from discontinued operations, net of tax and noncontrolling interests $ (31.6) $ 51.4 $ (36.6) $ 56.2 (1) During the three and six months ended June 27, 2020, there was no depreciation of property, plant and equipment or amortization of intangible assets, related to our discontinued operations, as the assets of the Disposal Group were classified as held-for-sale for the period. Depreciation and amortization were recognized during the three and six months ended June 29, 2019, as the assets of the Disposal Group were initially classified as held-for-sale as of the end of the second quarter of 2019. (2) See previous paragraphs for further discussion regarding the loss on Disposal Group recognized during the three and six months ended June 27, 2020. (3) 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 $0.0 and $3.3 for the three months ended June 27, 2020 and June 29, 2019, respectively, and $1.6 and $6.4 for the six month periods then ended, 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 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. (4) During the three and six months ended June 27, 2020, we recorded an income tax provision of $29.0 and $28.1, respectively, on $2.6 and $8.6, respectively, of pre-tax loss from discontinued operations. Among other items, the income tax provision for the three months ended June 27, 2020 was impacted by income tax charges of (i) $32.1 composed of the U.S. tax expense on the tax gain on sale of Disposal Group entities sold by the U.S. parent and (ii) $1.6 in reduction of the benefit to be realized through the disposition of held-for-sale assets, which were partially offset by an income tax benefit of $4.9 related to a loss for global intangible low-taxed income purposes on the sale of certain non-U.S. entities. The significant non-U.S. sales of Disposal Group entities were in locations where local law did not require any gain to be taxed or permit any loss to result in a future benefit. In addition to these, the income tax provision for the six months ended June 27, 2020 also included the effect from the first quarter of 2020 that the majority of the pre-tax loss on Disposal Group was not deductible in the various jurisdictions where the sale of the Disposal Group will be recognized. As such, only $1.2 of tax benefit was recognized on the $8.6 pre-tax loss on Disposal Group. During the three and six months ended June 29, 2019, we recorded an income tax benefit of $37.8 on $13.1 and $18.2, respectively, of pre-tax income from discontinued operations. Among other items, the income tax benefits for these periods were impacted by a benefit of $40.6 resulting from basis differences that were expected to be realized through the disposition of the Disposal Group. The major classes of assets and liabilities, excluding intercompany balances, as they were excluded from the sale and were settled prior to closing, classified as held-for-sale in the accompanying condensed consolidated balance sheets, were as follows: June 27, 2020 December 31, 2019 ASSETS Current assets: Cash and equivalents $ — $ 3.1 Accounts receivable, net 2.0 99.4 Contract assets — 43.0 Inventories, net 1.0 72.8 Other current assets 0.6 12.9 Total current assets 3.6 231.2 Property, plant and equipment, net 0.5 87.4 Goodwill 2.0 194.9 Intangibles, net — 92.3 Other assets — 59.2 Total long-term assets (1) 2.5 433.8 Total assets, before valuation allowance 6.1 665.0 Less: valuation allowance (2) (2.0) (201.0) TOTAL ASSETS, net of valuation allowance (1) $ 4.1 $ 464.0 LIABILITIES Current liabilities: Accounts payable $ 1.0 $ 46.6 Contract liabilities 0.1 43.6 Accrued expenses 0.6 52.6 Income taxes payable — 1.6 Current maturities of long-term debt — 0.5 Total current liabilities 1.7 144.9 Long-term debt — 3.6 Deferred and other income taxes — 13.6 Other long-term liabilities — 58.4 Total long-term liabilities (1) — 75.6 TOTAL LIABILITIES (1) $ 1.7 $ 220.5 (1) The total assets and liabilities of discontinued operations are classified in current assets and liabilities, respectively, in our condensed consolidated balance sheets as of June 27, 2020 and December 31, 2019, as the disposition of the Disposal Group occurred, or was expected to occur, within twelve months of each respective date. The consummation of the sale to the Buyer of a remaining business reflected as discontinued operations as of June 27, 2020 and based in India, with an expected gross purchase price of $6.4, remains subject to local regulatory approvals but is expected to occur in the second half of 2020. (2) See previous paragraphs for further discussion regarding the valuation allowance recorded as of June 27, 2020 and 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 six months ended June 27, 2020 and June 29, 2019: Six months ended June 27, 2020 June 29, 2019 Loss on Disposal Group (1) $ 10.5 $ — Depreciation and amortization (2) — 7.8 Capital expenditures (5.5) (2.8) Proceeds on disposition of Disposal Group (3) 398.9 — (1) See previous paragraphs for further discussion regarding the loss on Disposal Group recognized during the six months ended June 27, 2020. (2) As noted above, during the six months ended June 27, 2020, there was no depreciation of property, plant and equipment or amortization of intangible assets, related to our discontinued operations, as the assets of the Disposal Group were classified as held-for-sale for the period. Depreciation and amortization were recognized during the six months ended June 29, 2019, as the assets of the Disposal Group were initially classified as held-for-sale as of the end of the second quarter of 2019. (3) As noted above, proceeds of $406.2 were received from the Buyer during the six months ended June 27, 2020. Net of cash and restricted cash of $7.3 included in the net assets of the Disposal Group which were sold as of March 30, 2020, cash flows of $398.9 were realized upon disposition of the Disposal Group (excluding consummation of the sale of a business based in India, as noted above). |
INFORMATION ON REPORTABLE SEG_2
INFORMATION ON REPORTABLE SEGMENTS, CORPORATE EXPENSE AND OTHER (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Segment Reporting [Abstract] | |
Schedule of financial data for reportable segments | Financial data for our reportable segments for the three and six months ended June 27, 2020 and June 29, 2019 were as follows: Three months ended Six months ended June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Revenues: Food and Beverage $ 144.7 $ 178.6 $ 282.5 $ 351.1 Industrial 163.4 206.8 315.1 407.7 Total revenues $ 308.1 $ 385.4 $ 597.6 $ 758.8 Income: Food and Beverage $ 19.1 $ 14.0 $ 38.5 $ 32.5 Industrial 19.9 30.7 29.3 59.2 Total income for reportable segments 39.0 44.7 67.8 91.7 Corporate expense (1) 19.0 12.9 34.5 26.7 Pension and postretirement service costs 0.2 0.2 0.4 0.4 Asset impairment charges (2) 0.8 — 2.7 — Restructuring and other related charges 4.8 1.9 7.4 6.9 Consolidated operating income $ 14.2 $ 29.7 $ 22.8 $ 57.7 (1) Includes $0.0 and $1.5 for the three months ended June 27, 2020 and June 29, 2019, respectively, and $2.4 and $3.1 for the six months then ended, 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 remained employees of SPX FLOW upon the disposition of the discontinued operations. (2) Asset impairment charges of $0.8, during the three months ended June 27, 2020, resulted from management’s decision to consolidate and relocate the operations of a U.S. manufacturing facility within the Industrial reportable segment to existing facilities in the U.S. as well as in our EMEA and APAC regions. Charges for the six months ended June 27, 2020 included these charges as well as asset impairment charges of $1.9 which resulted from management’s decision, during the first quarter of 2020, to discontinue a product line within the Industrial reportable segment. |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue by reportable segments | The following table provides revenues recognized over time by reportable segment for the three and six months ended June 27, 2020 and June 29, 2019: Three months ended Six months ended June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Revenues recognized over time: Food and Beverage $ 56.1 $ 73.2 $ 101.1 $ 153.0 Industrial 9.7 10.9 15.7 29.5 Total revenues recognized over time $ 65.8 $ 84.1 $ 116.8 $ 182.5 Three months ended June 27, 2020 Three months ended June 29, 2019 Original Equipment Aftermarket Total Revenues Original Equipment Aftermarket Total Revenues Food and Beverage $ 89.2 (1) $ 55.5 $ 144.7 $ 116.9 (1) $ 61.7 $ 178.6 Industrial 104.0 59.4 163.4 139.5 67.3 206.8 Total revenues $ 193.2 $ 114.9 $ 308.1 $ 256.4 $ 129.0 $ 385.4 (1) Includes $46.5 and $62.4 for the three months ended June 27, 2020 and June 29, 2019, respectively, of revenue realized from the sale of highly engineered Food and Beverage systems. Six months ended June 27, 2020 Six months ended June 29, 2019 Original Equipment Aftermarket Total Revenues Original Equipment Aftermarket Total Revenues Food and Beverage $ 170.0 (1) $ 112.5 $ 282.5 $ 229.5 (1) $ 121.6 $ 351.1 Industrial 198.9 116.2 315.1 276.9 130.8 407.7 Total revenues $ 368.9 $ 228.7 $ 597.6 $ 506.4 $ 252.4 $ 758.8 (1) Includes $84.4 and $125.0 for the six months ended June 27, 2020 and June 29, 2019, respectively, of revenue realized from the sale of highly engineered Food and Beverage systems. |
Contract assets and liabilities and changes in balances | Our contract accounts receivable, assets and liabilities, and changes in such balances, were as follows: June 27, 2020 December 31, 2019 Change (1) Contract accounts receivable (2) $ 207.8 $ 231.9 $ (24.1) Contract assets 28.7 27.3 1.4 Contract liabilities (120.1) (116.3) (3.8) Net contract balance $ 116.4 $ 142.9 $ (26.5) (1) The $26.5 decrease in our net contract balance from December 31, 2019 to June 27, 2020 was primarily due to a reduction in volume of revenues recognized at a point in time, partially due to the effects of the COVID-19 pandemic during the six months ended June 27, 2020, as well as 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 condensed consolidated balance sheets. Amounts are presented before consideration of the allowance for uncollectible accounts. |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Leases [Abstract] | |
Components of Operating and Finance Lease ROU Asset and Liabilities | The components of operating and finance lease ROU assets and liabilities as of June 27, 2020 and December 31, 2019 were as follows: June 27, 2020 December 31, 2019 Balance Sheet Caption in Which Balance is Reported Finance lease ROU assets $ 0.4 $ 0.5 Property, plant and equipment, net Operating lease ROU assets 45.5 48.8 Other assets Current portion of operating lease liabilities 15.6 15.4 Accrued expenses Current portion of finance lease liabilities 0.1 0.1 Current maturities of long-term debt Long-term finance lease liabilities 0.4 0.5 Long-term debt Long-term operating lease liabilities 36.9 40.4 Other long-term liabilities The components of lease expense for the three and six months ended June 27, 2020 and June 29, 2019 were as follows: Three months ended Six months ended June 27, 2020 (1) June 29, 2019 (1) June 27, 2020 (1) June 29, 2019 (1) Operating lease cost (2) $ 4.3 $ 4.2 9.1 $ 9.2 Short-term lease cost (2) 0.9 0.9 1.4 1.2 Variable lease cost (2) 0.1 0.1 0.2 0.5 Total lease cost $ 5.3 $ 5.2 $ 10.7 $ 10.9 (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 three and six months ended June 27, 2020 and June 29, 2019. (2) Included in “Cost of products sold” and “Selling, general and administrative” in our condensed consolidated statements of operations. |
Future Operating Lease Payments | The future lease payments under operating and finance leases with initial remaining terms in excess of one year as of June 27, 2020 were as follows: Year Ending December 31, Operating leases Finance leases Total 2020 $ 7.9 $ 0.1 $ 8.0 2021 13.4 0.2 13.6 2022 9.8 0.1 9.9 2023 7.5 0.1 7.6 2024 6.3 0.1 6.4 2025 3.8 — 3.8 Thereafter 10.2 — 10.2 Total lease payments 58.9 0.6 59.5 Less: interest (6.4) (0.1) (6.5) Present value of lease liabilities $ 52.5 $ 0.5 $ 53.0 Key assumptions used in accounting for our operating and finance leases as of June 27, 2020 and December 31, 2019 were as follows: June 27, 2020 December 31, 2019 Weighted-average remaining lease term (years): Operating leases 5.7 6.0 Finance leases 4.1 4.3 Weighted-average discount rate: Operating leases 4.33 % 4.49 % Finance leases 5.33 % 5.32 % |
Future Finance Lease Payments | The future lease payments under operating and finance leases with initial remaining terms in excess of one year as of June 27, 2020 were as follows: Year Ending December 31, Operating leases Finance leases Total 2020 $ 7.9 $ 0.1 $ 8.0 2021 13.4 0.2 13.6 2022 9.8 0.1 9.9 2023 7.5 0.1 7.6 2024 6.3 0.1 6.4 2025 3.8 — 3.8 Thereafter 10.2 — 10.2 Total lease payments 58.9 0.6 59.5 Less: interest (6.4) (0.1) (6.5) Present value of lease liabilities $ 52.5 $ 0.5 $ 53.0 Key assumptions used in accounting for our operating and finance leases as of June 27, 2020 and December 31, 2019 were as follows: June 27, 2020 December 31, 2019 Weighted-average remaining lease term (years): Operating leases 5.7 6.0 Finance leases 4.1 4.3 Weighted-average discount rate: Operating leases 4.33 % 4.49 % Finance leases 5.33 % 5.32 % |
Cash Flows and Non-Cash Activities | Cash flows and non-cash activities related to our operating and finance leases for the six months ended June 27, 2020 and June 29, 2019 were as follows: Six months ended June 27, 2020 June 29, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid for operating leases $ 8.7 $ 9.5 Operating cash flows paid for finance leases — — Financing cash flows paid for finance leases 0.1 0.1 Non-cash activities: Operating lease ROU assets obtained in exchange for new operating lease liabilities 3.0 2.5 Finance lease ROU assets obtained in exchange for new finance lease liabilities — 0.3 |
RESTRUCTURING AND OTHER RELAT_2
RESTRUCTURING AND OTHER RELATED CHARGES (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of special charges, net | Restructuring and other related charges for the three and six months ended June 27, 2020 and June 29, 2019 were as follows: Three months ended Six months ended June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Food and Beverage $ 1.5 $ 1.8 $ 2.0 $ 6.2 Industrial 2.8 0.1 4.6 0.7 Other 0.5 — 0.8 — Total $ 4.8 $ 1.9 $ 7.4 $ 6.9 |
Schedule of the analysis of restructuring liabilities | The following is an analysis of our restructuring liabilities (included in “Accrued expenses” in our condensed consolidated balance sheets) for the six months ended June 27, 2020 and June 29, 2019: Six months ended June 27, 2020 June 29, 2019 Balance at beginning of year $ 7.6 $ 7.1 Restructuring and other related charges (1) 7.1 6.6 Utilization — cash (4.7) (3.3) Currency translation adjustment and other 0.5 0.1 Balance at end of period $ 10.5 $ 10.5 (1) Amounts that impacted restructuring and other related charges but not the restructuring liabilities included $0.3 of other related charges during the six months ended June 27, 2020 and June 29, 2019. |
INVENTORIES, NET (Tables)
INVENTORIES, NET (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories at June 27, 2020 and December 31, 2019 comprised the following: June 27, 2020 December 31, 2019 Finished goods $ 90.9 $ 82.5 Work in process 56.3 47.0 Raw materials and purchased parts 92.1 85.9 Total FIFO cost 239.3 215.4 Excess of FIFO cost over LIFO inventory value (7.3) (7.3) Total inventories $ 232.0 $ 208.1 |
GOODWILL, OTHER INTANGIBLE AS_2
GOODWILL, OTHER INTANGIBLE ASSETS AND ASSET IMPAIRMENT CHARGES (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the carrying amount of goodwill, by reportable segment | The changes in the carrying amount of goodwill by reportable segment during the six months ended June 27, 2020 were as follows: December 31, 2019 Impairments Foreign Currency Translation and Other June 27, 2020 Food and Beverage $ 257.5 $ — $ (1.0) $ 256.5 Industrial (1) 287.6 — (0.6) 287.0 Total $ 545.1 $ — $ (1.6) $ 543.5 |
Schedule of finite-lived intangible assets | Identifiable intangible assets were as follows: June 27, 2020 December 31, 2019 Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value Intangible assets with determinable lives: Customer relationships $ 124.4 $ (101.4) $ 23.0 $ 124.7 $ (97.5) $ 27.2 Technology 61.4 (47.9) 13.5 61.7 (46.6) 15.1 Patents 5.3 (4.4) 0.9 5.6 (4.5) 1.1 Other 8.0 (8.0) — 8.1 (8.1) — 199.1 (161.7) 37.4 200.1 (156.7) 43.4 Trademarks with indefinite lives 162.2 — 162.2 164.7 — 164.7 Total $ 361.3 $ (161.7) $ 199.6 $ 364.8 $ (156.7) $ 208.1 |
Schedule of indefinite-lived intangible assets | Identifiable intangible assets were as follows: June 27, 2020 December 31, 2019 Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value Intangible assets with determinable lives: Customer relationships $ 124.4 $ (101.4) $ 23.0 $ 124.7 $ (97.5) $ 27.2 Technology 61.4 (47.9) 13.5 61.7 (46.6) 15.1 Patents 5.3 (4.4) 0.9 5.6 (4.5) 1.1 Other 8.0 (8.0) — 8.1 (8.1) — 199.1 (161.7) 37.4 200.1 (156.7) 43.4 Trademarks with indefinite lives 162.2 — 162.2 164.7 — 164.7 Total $ 361.3 $ (161.7) $ 199.6 $ 364.8 $ (156.7) $ 208.1 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of net periodic benefit expense (income) | Net periodic benefit expense for our foreign pension plans and our domestic pension and postretirement plans for the three and six months ended June 27, 2020 and June 29, 2019 included the following components: Foreign Pension Plans Domestic Pension and Postretirement Plans Total Statement of Operations Caption in Which Expense is Reported Three months ended June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Service cost $ 0.2 0.2 $ — $ — $ 0.2 $ 0.2 Selling, general and administrative Interest cost 0.1 0.1 — 0.1 0.1 0.2 Other income, net Recognized net actuarial loss (1) — — — 0.2 — 0.2 Other income, net Total net periodic benefit expense $ 0.3 $ 0.3 $ — $ 0.3 $ 0.3 $ 0.6 Foreign Pension Plans Domestic Pension and Postretirement Plans Total Statement of Operations Caption in Which Expense is Reported Six Months Ended June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Service cost $ 0.4 0.4 $ — $ — $ 0.4 $ 0.4 Selling, general and administrative Interest cost 0.2 0.2 0.1 0.2 0.3 0.4 Other income, net Recognized net actuarial loss (1) — — — 0.2 — 0.2 Other income, net Total net periodic benefit expense $ 0.6 $ 0.6 $ 0.1 $ 0.4 $ 0.7 $ 1.0 (1) For the three and six months ended June 29, 2019, the $0.2 charge reflects the effects of a partial settlement and remeasurement of our domestic pension plan, resulting from the lump sum payment of a former officer’s pension obligation during the second quarter of 2019. |
INDEBTEDNESS (Tables)
INDEBTEDNESS (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of debt | Debt at June 27, 2020 and December 31, 2019 was comprised of the following: June 27, 2020 December 31, 2019 Term loan, due in June 2022 $ 100.0 $ 100.0 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 (1) 16.2 21.3 Less: deferred financing fees (2) (6.1) (6.8) Total debt 710.1 714.5 Less: short-term debt 15.7 20.7 Less: current maturities of long-term debt 0.1 0.1 Total long-term debt $ 694.3 $ 693.7 (1) Primarily includes finance lease obligations of $0.5 and $0.6 and balances under a purchase card program of $15.6 and $20.4 as of June 27, 2020 and December 31, 2019, respectively. The purchase card program allows for payment beyond customary payment terms for goods and services acquired under the program. As this arrangement extends the payment of these purchases beyond their normal payment terms through third-party lending institutions, we have classified these amounts as short-term debt. (2) Deferred financing fees were comprised of fees related to the term loan and senior notes. |
EQUITY AND STOCK-BASED COMPEN_2
EQUITY AND STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Equity [Abstract] | |
Schedule of weighted average shares outstanding used in computation of basic and diluted income (loss) per share | The following table sets forth the number of weighted-average shares outstanding used in the computation of basic and diluted income (loss) per share: Three months ended Six months ended June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Weighted-average shares outstanding, basic 42.397 42.368 42.524 42.410 Dilutive effect of share-based awards 0.108 0.249 0.179 0.187 Weighted-average shares outstanding, dilutive (1) 42.505 42.617 42.703 42.597 (1) Unvested restricted stock shares/units not included in the computation of diluted income per share because required market thresholds for vesting (as discussed below) were not met, were 0.154 and 0.151 for the three months ended June 27, 2020 and June 29, 2019, respectively, and 0.123 and 0.156 for the six months then ended, respectively. Unvested restricted stock shares/units not included in the computation of diluted income per share because required internal performance thresholds for vesting (as discussed below) were not met, were 0.215 and 0.119 for the three months ended June 27, 2020 and June 29, 2019, respectively, and 0.193 and 0.129 for the six months then ended, respectively. Stock options outstanding excluded from the computation of diluted income per share because their exercise price was greater than the average market price of common shares, were 0.342 for the three and six months ended June 27, 2020 and June 29, 2019. |
Schedule of compensation expense related to share-based programs recognized in selling, general and administrative expense | For the three and six months ended June 27, 2020 and June 29, 2019, we recognized compensation expense related to share-based programs in “Selling, general and administrative” expense in the accompanying condensed consolidated statements of operations as follows: Three months ended Six months ended June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Stock-based compensation expense - continuing and discontinued operations $ 3.8 $ 3.6 7.8 6.8 Less: stock-based compensation expense recognized in discontinued operations — 0.3 0.8 0.6 Stock-based compensation expense recognized in continuing operations 3.8 3.3 7.0 6.2 Income tax benefit (0.8) (0.7) (1.6) (1.4) Stock-based compensation expense, net of income tax benefit $ 3.0 $ 2.6 $ 5.4 $ 4.8 |
Summary of restricted stock share and restricted stock unit activity | The following table summarizes the unvested restricted stock share and restricted stock unit activity for the six months ended June 27, 2020: Unvested Restricted Stock Shares and Restricted Stock Units Weighted-Average Grant-Date Fair Value Per Share Outstanding at December 31, 2019 0.999 $38.24 Granted 0.490 35.02 Vested (0.442) 37.19 Forfeited and other (0.037) 40.95 Outstanding at June 27, 2020 1.010 $37.03 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Fair Value Disclosures [Abstract] | |
Estimated fair values of other financial liabilities not measured at fair value on a recurring basis | The estimated fair values of other financial liabilities (excluding finance leases and deferred financing fees) not measured at fair value on a recurring basis as of June 27, 2020 and December 31, 2019 were as follows: June 27, 2020 December 31, 2019 Carrying Amount Fair Value Carrying Amount Fair Value Term loan (1) $ 100.0 $ 100.0 $ 100.0 $ 100.0 5.625% senior notes (1) 300.0 306.0 300.0 312.0 5.875% senior notes (1) 300.0 306.0 300.0 316.5 Other indebtedness 15.7 15.7 20.7 20.7 (1) Carrying amount reflected herein excludes related deferred financing fees. |
BASIS OF PRESENTATION - Narrati
BASIS OF PRESENTATION - Narrative (Details) - segment | 3 Months Ended | 6 Months Ended | |
Jun. 29, 2019 | Mar. 30, 2019 | Jun. 27, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Number of business segments (in segments) | 2 | 3 | 2 |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Details) - USD ($) $ in Millions | Mar. 30, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Jun. 27, 2020 | Jun. 29, 2019 | Dec. 31, 2019 | Nov. 30, 2019 | Nov. 24, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Cash and equivalents | $ 0 | $ 0 | $ 16.8 | |||||
Net proceeds from disposition | 406.2 | |||||||
Accumulated other comprehensive loss | $ (282.3) | $ (426.5) | ||||||
Gain (loss) on disposal | (2) | $ (8.5) | ||||||
Transaction services agreement income | 1.5 | 1.5 | ||||||
Disposed of by Sale | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Consideration | $ 475 | $ 475 | ||||||
Disposed of by Sale | Disposal Group | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Net proceeds from sale of business | $ 406.2 | 406.2 | ||||||
Cash and equivalents | 7.3 | |||||||
Net proceeds from disposition | 398.9 | |||||||
Gain (loss) on disposal | $ (8.6) | |||||||
Held-for-sale | Disposal Group | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Consideration | 6.4 | 6.4 | ||||||
Cash and equivalents | 0 | 0 | $ 3.1 | |||||
Foreign currency translation gains (losses) | $ 178.2 | |||||||
Accumulated other comprehensive loss | $ 1.2 | |||||||
Minimum | Dehydration-Related Products | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Long-term purchase commitment | 8 | |||||||
Maximum | Dehydration-Related Products | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Long-term purchase commitment | $ 9 |
DISCONTINUED OPERATIONS - Incom
DISCONTINUED OPERATIONS - Income (Loss) from Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 27, 2020 | Mar. 28, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Income (loss) from discontinued operations, net of tax | $ (31.6) | $ 50.9 | $ (36.7) | $ 56 | |
Income (loss) from discontinued operations, net of tax and noncontrolling interests | $ (31.6) | $ 51.4 | $ (36.6) | $ 56.2 | |
Effective income tax rate, from discontinued operations | 36.80% | 50.40% | 31.30% | 45.80% | |
Impact of charge resulting from losses not expected to be realized | $ (6) | $ (4.9) | $ (7) | ||
Income tax benefit | 3.9 | 11.5 | $ 3 | 22.2 | |
Gain (loss) on disposal | (2) | $ (8.5) | |||
Deferred tax liability, change in basis | 2 | 2 | |||
Disposed of by Sale | Disposal Group | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Revenues | 0.7 | 127.8 | 111.4 | 245.5 | |
Cost of products sold | 0.5 | 86 | 75.8 | 172.6 | |
Gross profit | 0.2 | 41.8 | 35.6 | 72.9 | |
Selling, general and administrative | 0.8 | 24 | 31.5 | 45.4 | |
Intangible amortization | 0 | 1 | 0 | 1.9 | |
Loss on disposal group | 2 | 0 | 10.5 | 0 | |
Restructuring and other related charges | 0 | 0 | 0.3 | 0 | |
Operating income (loss) | (2.6) | 16.8 | (6.7) | 25.6 | |
Other expense, net | 0 | (0.4) | (0.3) | (1) | |
Interest expense, net | 0 | (3.3) | (1.6) | (6.4) | |
Income (loss) from discontinued operations before income taxes | 2.6 | (13.1) | 8.6 | (18.2) | |
Income tax benefit (provision) | 29 | (37.8) | 28.1 | (37.8) | |
Income (loss) from discontinued operations, net of tax | (31.6) | 50.9 | (36.7) | 56 | |
Less: Income (loss) attributable to noncontrolling interests | 0 | (0.5) | (0.1) | (0.2) | |
Income (loss) from discontinued operations, net of tax and noncontrolling interests | (31.6) | 51.4 | (36.6) | 56.2 | |
Impact of charge resulting from losses not expected to be realized | 4.9 | ||||
Income tax benefit | 32.1 | (1.2) | |||
Gain (loss) on disposal | (8.6) | ||||
Deferred tax liability, change in basis | 40.6 | 40.6 | |||
Senior Notes, Senior Credit Facilities, Former Trade Receivables | Disposed of by Sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Interest expense, net | $ 0 | $ (3.3) | $ (1.6) | $ (6.4) |
DISCONTINUED OPERATIONS - Sched
DISCONTINUED OPERATIONS - Schedule of Major Classes of Assets and Liabilities (Details) - USD ($) $ in Millions | Jun. 27, 2020 | Dec. 31, 2019 | Jun. 29, 2019 |
Current assets: | |||
Cash and equivalents | $ 0 | $ 16.8 | |
Total current assets | 4.1 | $ 464 | |
Current liabilities: | |||
Total current liabilities | 1.7 | 220.5 | |
Held-for-sale | Disposal Group | |||
Current assets: | |||
Cash and equivalents | 0 | 3.1 | |
Accounts receivable, net | 2 | 99.4 | |
Contract assets | 0 | 43 | |
Inventories, net | 1 | 72.8 | |
Other current assets | 0.6 | 12.9 | |
Total current assets | 3.6 | 231.2 | |
Property, plant and equipment, net | 0.5 | 87.4 | |
Goodwill | 2 | 194.9 | |
Intangibles, net | 0 | 92.3 | |
Other assets | 0 | 59.2 | |
Total long-term assets | 2.5 | 433.8 | |
Total assets, before valuation allowance | 6.1 | 665 | |
Less: valuation allowance | (2) | (201) | |
TOTAL ASSETS | 4.1 | 464 | |
Current liabilities: | |||
Accounts payable | 1 | 46.6 | |
Contract liabilities | 0.1 | 43.6 | |
Accrued expenses | 0.6 | 52.6 | |
Income taxes payable | 0 | 1.6 | |
Current maturities of long-term debt | 0 | 0.5 | |
Total current liabilities | 1.7 | 144.9 | |
Long-term debt | 0 | 3.6 | |
Deferred and other income taxes | 0 | 13.6 | |
Other long-term liabilities | 0 | 58.4 | |
Total long-term liabilities | 0 | 75.6 | |
TOTAL LIABILITIES | 1.7 | $ 220.5 | |
Consideration | $ 6.4 |
DISCONTINUED OPERATIONS - Sch_2
DISCONTINUED OPERATIONS - Schedule of Significant Non-Cash Operating Items (Details) - USD ($) $ in Millions | Mar. 30, 2020 | Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Depreciation and amortization | $ 20 | $ 19.4 | |||
Capital expenditures | (11.8) | (12.5) | |||
Net proceeds from disposition | 406.2 | ||||
Cash and equivalents | $ 0 | $ 16.8 | 0 | 16.8 | |
Disposed of by Sale | Disposal Group | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Loss on disposal group | $ 2 | $ 0 | 10.5 | 0 | |
Net proceeds from disposition | 398.9 | ||||
Net proceeds from sale of business | $ 406.2 | 406.2 | |||
Cash and equivalents | $ 7.3 | ||||
Disposed of by sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Depreciation and amortization | 0 | 7.8 | |||
Capital expenditures | (5.5) | (2.8) | |||
Net proceeds from disposition | $ 398.9 | $ 0 |
INFORMATION ON REPORTABLE SEG_3
INFORMATION ON REPORTABLE SEGMENTS, CORPORATE EXPENSE AND OTHER - Narrative (Details) | 3 Months Ended | 6 Months Ended | |
Jun. 29, 2019segment | Mar. 30, 2019segment | Jun. 27, 2020countrysegment | |
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 | 3 | 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 | 6 Months Ended | |||
Jun. 27, 2020 | Mar. 28, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Revenues: | |||||
Total revenues | $ 308.1 | $ 385.4 | $ 597.6 | $ 758.8 | |
Income: | |||||
Total income for reportable segments | 14.2 | 29.7 | 22.8 | 57.7 | |
Asset impairment charges | 0.8 | 0 | 2.7 | 0 | |
Restructuring and other related charges | 4.8 | 1.9 | 7.4 | 6.9 | |
Food and Beverage | |||||
Revenues: | |||||
Total revenues | 144.7 | 178.6 | 282.5 | 351.1 | |
Industrial | |||||
Revenues: | |||||
Total revenues | 163.4 | 206.8 | 315.1 | 407.7 | |
Reporting segments | |||||
Revenues: | |||||
Total revenues | 308.1 | 385.4 | 597.6 | 758.8 | |
Income: | |||||
Total income for reportable segments | 39 | 44.7 | 67.8 | 91.7 | |
Reporting segments | Food and Beverage | |||||
Revenues: | |||||
Total revenues | 144.7 | 178.6 | 282.5 | 351.1 | |
Income: | |||||
Total income for reportable segments | 19.1 | 14 | 38.5 | 32.5 | |
Restructuring and other related charges | 1.5 | 1.8 | 2 | 6.2 | |
Reporting segments | Industrial | |||||
Revenues: | |||||
Total revenues | 163.4 | 206.8 | 315.1 | 407.7 | |
Income: | |||||
Total income for reportable segments | 19.9 | 30.7 | 29.3 | 59.2 | |
Restructuring and other related charges | 2.8 | 0.1 | 4.6 | 0.7 | |
Other | |||||
Income: | |||||
Corporate expense | 19 | 12.9 | 34.5 | 26.7 | |
Restructuring and other related charges | 0.5 | 0 | 0.8 | 0 | |
Segment reconciling items | |||||
Income: | |||||
Pension and postretirement service costs | 0.2 | 0.2 | 0.4 | 0.4 | |
Asset impairment charges | 0.8 | $ 1.9 | 0 | 2.7 | 0 |
Restructuring and other related charges | 4.8 | 1.9 | 7.4 | 6.9 | |
Discontinued operations | Other | |||||
Income: | |||||
Corporate expense | $ 0 | $ 1.5 | $ 2.4 | $ 3.1 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS - Disaggregation of Revenue by Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 308.1 | $ 385.4 | $ 597.6 | $ 758.8 |
Original Equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 193.2 | 256.4 | 368.9 | 506.4 |
Aftermarket | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 114.9 | 129 | 228.7 | 252.4 |
Transferred Over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 65.8 | 84.1 | 116.8 | 182.5 |
Food and Beverage | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 144.7 | 178.6 | 282.5 | 351.1 |
Food and Beverage | Original Equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 89.2 | 116.9 | 170 | 229.5 |
Food and Beverage | Aftermarket | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 55.5 | 61.7 | 112.5 | 121.6 |
Food and Beverage | Original Equipment, Highly engineered systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 46.5 | 62.4 | 84.4 | 125 |
Food and Beverage | Transferred Over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 56.1 | 73.2 | 101.1 | 153 |
Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 163.4 | 206.8 | 315.1 | 407.7 |
Industrial | Original Equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 104 | 139.5 | 198.9 | 276.9 |
Industrial | Aftermarket | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 59.4 | 67.3 | 116.2 | 130.8 |
Industrial | Transferred Over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 9.7 | $ 10.9 | $ 15.7 | $ 29.5 |
REVENUE FROM CONTRACTS WITH C_4
REVENUE FROM CONTRACTS WITH CUSTOMERS - Contract Assets and Liabilities and Changes in Balances (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 27, 2020 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Contract accounts receivable | $ 207.8 | $ 231.9 |
Change in contract accounts receivable | (24.1) | |
Contract assets | 28.7 | 27.3 |
Change in contract assets | 1.4 | |
Contract liabilities | (120.1) | (116.3) |
Change in contract liabilities | (3.8) | |
Net contract balance | 116.4 | $ 142.9 |
Change in net contract balance | $ (26.5) |
REVENUE FROM CONTRACTS WITH C_5
REVENUE FROM CONTRACTS WITH CUSTOMERS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |||||
Deferred costs, current | $ 0.4 | $ 0.4 | $ 0.4 | ||
Revenue recognized related to contract liabilities outstanding | $ 28.1 | $ 24.3 | $ 70.6 | $ 76.8 |
REVENUE FROM CONTRACTS WITH C_6
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |||||
Revenue recognized related to contract liabilities outstanding | $ 28.1 | $ 24.3 | $ 70.6 | $ 76.8 | |
Deferred costs, current | 0.4 | 0.4 | $ 0.4 | ||
Remaining performance obligation | 546.3 | 527.6 | 546.3 | 527.6 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligation | $ 546.3 | $ 527.6 | $ 546.3 | $ 527.6 | |
Remaining performance obligation, percentage | 93.00% | 93.00% | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-06-28 | Next 12 months | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Expected timing of satisfaction, period | 12 months | 12 months | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-06-28 | Next 24 months | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Expected timing of satisfaction, period | 24 months | 24 months |
LEASES - Components of Operatin
LEASES - Components of Operating and Finance Lease ROU Asset and Liabilities (Details) - USD ($) $ in Millions | Jun. 27, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Finance lease ROU assets | $ 0.4 | $ 0.5 |
Operating lease ROU assets | 45.5 | 48.8 |
Current portion of operating lease liabilities | 15.6 | 15.4 |
Current portion of finance lease liabilities | 0.1 | 0.1 |
Long-term finance lease liabilities | 0.4 | 0.5 |
Long-term operating lease liabilities | $ 36.9 | $ 40.4 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:AssetsAbstract | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:AssetsAbstract | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:LiabilitiesCurrentAbstract | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:LiabilitiesCurrentAbstract | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtNoncurrent |
LEASES - Components of Lease Ex
LEASES - Components of Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Leases [Abstract] | ||||
Operating lease cost | $ 4.3 | $ 4.2 | $ 9.1 | $ 9.2 |
Short-term lease cost | 0.9 | 0.9 | 1.4 | 1.2 |
Variable lease cost | 0.1 | 0.1 | 0.2 | 0.5 |
Total lease cost | 5.3 | 5.2 | 10.7 | 10.9 |
Amortization of ROU assets | $ 0.1 | $ 0.1 | $ 0.1 | $ 0.1 |
LEASES - Future Lease Payments
LEASES - Future Lease Payments (Details) - USD ($) $ in Millions | Jun. 27, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2020 | $ 7.9 | |
2021 | 13.4 | |
2022 | 9.8 | |
2023 | 7.5 | |
2024 | 6.3 | |
2025 | 3.8 | |
Thereafter | 10.2 | |
Total lease payments | 58.9 | |
Less: interest | (6.4) | |
Present value of lease liabilities | 52.5 | |
2020 | 0.1 | |
2021 | 0.2 | |
2022 | 0.1 | |
2023 | 0.1 | |
2024 | 0.1 | |
2025 | 0 | |
Thereafter | 0 | |
Total lease payments | 0.6 | |
Less: interest | (0.1) | |
Present value of lease liabilities | 0.5 | $ 0.6 |
2020 | 8 | |
2021 | 13.6 | |
2022 | 9.9 | |
2023 | 7.6 | |
2024 | 6.4 | |
2025 | 3.8 | |
Thereafter | 10.2 | |
Total lease payments | 59.5 | |
Less: interest | (6.5) | |
Present value of lease liabilities | $ 53 | |
Weighted Average Remaining Lease Terms [Abstract] | ||
Operating leases | 5 years 8 months 12 days | 6 years |
Finance leases | 4 years 1 month 6 days | 4 years 3 months 18 days |
Operating leases | 4.33% | 4.49% |
Finance leases | 5.33% | 5.32% |
LEASES - Cash Flows and Non-Cas
LEASES - Cash Flows and Non-Cash Activities (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 27, 2020 | Jun. 29, 2019 | |
Leases [Abstract] | ||
Operating cash flows paid for operating leases | $ 8.7 | $ 9.5 |
Operating cash flows paid for finance leases | 0 | 0 |
Financing cash flows paid for finance leases | 0.1 | 0.1 |
Operating lease ROU assets obtained in exchange for new operating lease liabilities | 3 | 2.5 |
Finance lease ROU assets obtained in exchange for new finance lease liabilities | $ 0 | $ 0.3 |
RESTRUCTURING AND OTHER RELAT_3
RESTRUCTURING AND OTHER RELATED CHARGES - Schedule (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related charges | $ 4.8 | $ 1.9 | $ 7.4 | $ 6.9 |
Reporting segments | Food and Beverage | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related charges | 1.5 | 1.8 | 2 | 6.2 |
Reporting segments | Industrial | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related charges | 2.8 | 0.1 | 4.6 | 0.7 |
Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related charges | $ 0.5 | $ 0 | $ 0.8 | $ 0 |
RESTRUCTURING AND OTHER RELAT_4
RESTRUCTURING AND OTHER RELATED CHARGES - Analysis of Restructuring Liabilities (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 27, 2020 | Jun. 29, 2019 | |
Restructuring Liabilities | ||
Balance at beginning of year | $ 7.6 | $ 7.1 |
Restructuring and other related charges | 7.1 | 6.6 |
Utilization — cash | (4.7) | (3.3) |
Currency translation adjustment and other | 0.5 | 0.1 |
Balance at end of period | 10.5 | 10.5 |
Corporate | ||
Restructuring Liabilities | ||
Asset impairment and non-cash charges | $ 0.3 | $ 0.3 |
INVENTORIES, NET - Inventories
INVENTORIES, NET - Inventories (Details) - USD ($) $ in Millions | Jun. 27, 2020 | Dec. 31, 2019 |
Inventory, Net [Abstract] | ||
Finished goods | $ 90.9 | $ 82.5 |
Work in process | 56.3 | 47 |
Raw materials and purchased parts | 92.1 | 85.9 |
Total FIFO cost | 239.3 | 215.4 |
Excess of FIFO cost over LIFO inventory value | (7.3) | (7.3) |
Total inventories | $ 232 | $ 208.1 |
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 | 6 Months Ended | |
Jun. 27, 2020 | Dec. 31, 2019 | |
Changes in the carrying amount of goodwill | ||
Beginning Balance | $ 545.1 | |
Impairments | 0 | |
Foreign Currency Translation and Other | (1.6) | |
Ending Balance | 543.5 | |
Food and Beverage | ||
Changes in the carrying amount of goodwill | ||
Beginning Balance | 257.5 | |
Impairments | 0 | |
Foreign Currency Translation and Other | (1) | |
Ending Balance | 256.5 | |
Industrial | ||
Changes in the carrying amount of goodwill | ||
Beginning Balance | 287.6 | |
Impairments | 0 | |
Foreign Currency Translation and Other | (0.6) | |
Ending Balance | 287 | |
Accumulated impairment included in carrying amount of goodwill | $ 133.3 | $ 133.6 |
GOODWILL, OTHER INTANGIBLE AS_4
GOODWILL, OTHER INTANGIBLE ASSETS AND ASSET IMPAIRMENT CHARGES - Identifiable Intangible Assets (Details) - USD ($) $ in Millions | Jun. 27, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 199.1 | $ 200.1 |
Accumulated Amortization | (161.7) | (156.7) |
Net Carrying Value | 37.4 | 43.4 |
Total gross carrying value | 361.3 | 364.8 |
Total net carrying value | 199.6 | 208.1 |
Trademarks with indefinite lives | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Trademarks with indefinite lives | 162.2 | 164.7 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 124.4 | 124.7 |
Accumulated Amortization | (101.4) | (97.5) |
Net Carrying Value | 23 | 27.2 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 61.4 | 61.7 |
Accumulated Amortization | (47.9) | (46.6) |
Net Carrying Value | 13.5 | 15.1 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 5.3 | 5.6 |
Accumulated Amortization | (4.4) | (4.5) |
Net Carrying Value | 0.9 | 1.1 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 8 | 8.1 |
Accumulated Amortization | (8) | (8.1) |
Net Carrying Value | $ 0 | $ 0 |
GOODWILL, OTHER INTANGIBLE AS_5
GOODWILL, OTHER INTANGIBLE ASSETS AND ASSET IMPAIRMENT CHARGES - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 27, 2020 | Mar. 28, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | Dec. 31, 2019 | |
Goodwill [Line Items] | ||||||
Net carrying value of intangible assets with determinable lives | $ 37,400,000 | $ 37,400,000 | $ 43,400,000 | |||
Impairment charges recorded | 0 | $ 0 | ||||
Asset impairment charges | 800,000 | $ 0 | 2,700,000 | 0 | ||
Segment reconciling items | ||||||
Goodwill [Line Items] | ||||||
Asset impairment charges | 800,000 | $ 1,900,000 | $ 0 | 2,700,000 | $ 0 | |
Trademarks with indefinite lives | ||||||
Goodwill [Line Items] | ||||||
Trademarks with indefinite lives | 162,200,000 | 162,200,000 | $ 164,700,000 | |||
Food and Beverage | ||||||
Goodwill [Line Items] | ||||||
Net carrying value of intangible assets with determinable lives | 23,400,000 | 23,400,000 | ||||
Food and Beverage | Trademarks with indefinite lives | ||||||
Goodwill [Line Items] | ||||||
Trademarks with indefinite lives | 95,700,000 | 95,700,000 | ||||
Industrial | ||||||
Goodwill [Line Items] | ||||||
Net carrying value of intangible assets with determinable lives | 14,000,000 | 14,000,000 | ||||
Industrial | Trademarks with indefinite lives | ||||||
Goodwill [Line Items] | ||||||
Trademarks with indefinite lives | $ 66,500,000 | $ 66,500,000 |
EMPLOYEE BENEFIT PLANS - Compon
EMPLOYEE BENEFIT PLANS - Components of Net Periodic Pension and Postretirement Benefit Expense (Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Employee Benefit Plans | ||||
Service cost | $ 0.2 | $ 0.2 | $ 0.4 | $ 0.4 |
Interest cost | 0.1 | 0.2 | 0.3 | 0.4 |
Recognized net actuarial loss | 0 | 0.2 | 0 | 0.2 |
Total net periodic benefit expense | 0.3 | 0.6 | 0.7 | 1 |
Pension plan | ||||
Employee Benefit Plans | ||||
Domestic pension payments (less than) | 0.1 | 0.1 | ||
Foreign Pension Plans | Pension plan | ||||
Employee Benefit Plans | ||||
Service cost | 0.2 | 0.2 | 0.4 | 0.4 |
Interest cost | 0.1 | 0.1 | 0.2 | 0.2 |
Recognized net actuarial loss | 0 | 0 | 0 | 0 |
Total net periodic benefit expense | 0.3 | 0.3 | 0.6 | 0.6 |
Domestic Pension and Postretirement Plans | ||||
Employee Benefit Plans | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 0 | 0.1 | 0.1 | 0.2 |
Recognized net actuarial loss | 0 | 0.2 | 0 | 0.2 |
Total net periodic benefit expense | $ 0 | 0.3 | $ 0.1 | 0.4 |
Settlement and remeasurement of domestic plan | $ 0.2 | $ 0.2 |
INDEBTEDNESS - Schedule of Debt
INDEBTEDNESS - Schedule of Debt (Details) - USD ($) $ in Millions | Jun. 27, 2020 | Dec. 31, 2019 |
Short-term Debt [Line Items] | ||
Other indebtedness | $ 16.2 | $ 21.3 |
Less: short-term debt | 15.7 | 20.7 |
Debt Instrument [Line Items] | ||
Less: deferred financing fees | (6.1) | (6.8) |
Long-term debt and capital lease obligations | 710.1 | 714.5 |
Less: current maturities of long-term debt | 0.1 | 0.1 |
Total long-term debt | 694.3 | 693.7 |
Finance lease obligation | 0.5 | 0.6 |
Purchase card program | ||
Short-term Debt [Line Items] | ||
Other indebtedness | 15.6 | 20.4 |
Term loan | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 100 | 100 |
Senior notes | 5.625% senior notes, due in August 2024 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 5.625% | |
Long-term debt | $ 300 | 300 |
Senior notes | 5.875% senior notes, due in August 2026 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 5.875% | |
Long-term debt | $ 300 | $ 300 |
INDEBTEDNESS - Narrative (Detai
INDEBTEDNESS - Narrative (Details) - USD ($) $ in Millions | Jun. 27, 2020 | Dec. 31, 2019 |
Line of Credit Facility [Line Items] | ||
Outstanding letters of credit | $ 5.1 | |
Foreign line of credit | ||
Line of Credit Facility [Line Items] | ||
Outstanding letters of credit | 8.5 | |
Secured debt | Letter of credit | ||
Line of Credit Facility [Line Items] | ||
Outstanding letters of credit | 5.9 | |
Secured debt | Foreign line of credit | ||
Line of Credit Facility [Line Items] | ||
Available borrowing capacity | 90.3 | |
Outstanding letters of credit | $ 59.7 | |
Senior credit facility | Secured debt | ||
Line of Credit Facility [Line Items] | ||
Weighted average interest rate of outstanding borrowings | 1.60% | 3.10% |
Available borrowing capacity | $ 494.1 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 27, 2020 | Dec. 31, 2019 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
FX forward contracts | |||||
Derivative [Line Items] | |||||
Aggregate notional amount | $ 33.6 | $ 83.3 | $ 33.6 | ||
Period contracts are scheduled to mature | 1 year | ||||
Unrealized gains (losses), net of tax, recorded in AOCI | 0 | 0.2 | $ 0 | ||
FX embedded derivatives | |||||
Derivative [Line Items] | |||||
Aggregate notional amount | 2.5 | 0.9 | 2.5 | ||
Forward contracts | |||||
Derivative [Line Items] | |||||
Fair value of derivative contract, gross assets | 0 | 0.3 | 0 | ||
Fair value of derivative contract, gross liabilities | 0 | 0 | 0 | ||
Forward contracts | Other income (expense), net | |||||
Derivative [Line Items] | |||||
Net gains (losses) recorded in other income (expense), net | $ (1) | $ 0.2 | $ 0 | $ (1.8) | $ (0.6) |
Minimum | FX 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 Per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | ||||
Weighted-average shares outstanding, basic (in shares) | 42,397 | 42,368 | 42,524 | 42,410 |
Dilutive effect of share-based awards (in shares) | 108 | 249 | 179 | 187 |
Weighted-average shares outstanding, dilutive (in shares) | 42,505 | 42,617 | 42,703 | 42,597 |
Restricted stock shares/Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Securities not included in computation of diluted income per share due to market threshold requirement (in shares) | 154 | 151 | 123 | 156 |
Securities not included in computation of diluted income per share due to internal performance thresholds (in shares) | 215 | 119 | 193 | 129 |
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 | 342 | 342 |
EQUITY AND STOCK-BASED COMPEN_4
EQUITY AND STOCK-BASED COMPENSATION - Stock-Based Compensation (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended |
Mar. 28, 2020 | Jun. 27, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award's requisite service period | 3 years | |
Stock Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available for future grants (up to) (in shares) | 2,123 | |
Restricted stock shares and restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Award's requisite service period | 10 years | |
Restricted stock shares and restricted stock units | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of shares equivalent to minimum vesting | 50.00% | |
Restricted stock shares and restricted stock units | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of shares equivalent to minimum vesting | 200.00% | |
Restricted stock shares and restricted stock units | Non-employee directors | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 1 year | |
Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Period of restricted sale or transfer | 1 year | |
Restricted stock units | Non-officer employees | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years |
EQUITY AND STOCK-BASED COMPEN_5
EQUITY AND STOCK-BASED COMPENSATION - Compensation Expense Related to Share-based Programs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Illiquidity discount | 14.60% | |||
Selling, general and administrative expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense - continuing and discontinued operations | $ 3.8 | $ 3.6 | $ 7.8 | $ 6.8 |
Income tax benefit | (0.8) | (0.7) | (1.6) | (1.4) |
Stock-based compensation expense, net of income tax benefit | 3 | 2.6 | 5.4 | 4.8 |
Discontinued operations | Selling, general and administrative expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense - continuing and discontinued operations | 0 | 0.3 | 0.8 | 0.6 |
Continuing operations | Selling, general and administrative expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense - continuing and discontinued operations | $ 3.8 | $ 3.3 | $ 7 | $ 6.2 |
EQUITY AND STOCK-BASED COMPEN_6
EQUITY AND STOCK-BASED COMPENSATION - Restricted Stock Unit Awards (Details) - Restricted stock shares and restricted stock units $ / shares in Units, shares in Thousands, $ in Millions | 6 Months Ended |
Jun. 27, 2020USD ($)$ / sharesshares | |
Unvested Restricted Stock Shares and Restricted Stock Units | |
Outstanding at beginning of year (in shares) | shares | 999 |
Granted (in shares) | shares | 490 |
Vested (in shares) | shares | (442) |
Forfeited and other (in shares) | shares | (37) |
Outstanding at the end of period (in shares) | shares | 1,010 |
Weighted-Average Grant-Date Fair Value Per Share | |
Outstanding at beginning of year (in dollars per share) | $ / shares | $ 38.24 |
Granted (in dollars per share) | $ / shares | 35.02 |
Vested (in dollars per share) | $ / shares | 37.19 |
Forfeited and other (in dollars per share) | $ / shares | 40.95 |
Outstanding at the end of period (in dollars per share) | $ / shares | $ 37.03 |
Unrecognized compensation cost | $ | $ 25.9 |
Weighted-average period cost expected to be recognized | 2 years 1 month 6 days |
EQUITY AND STOCK-BASED COMPEN_7
EQUITY AND STOCK-BASED COMPENSATION - Stock Options (Details) - Stock options - SPX FLOW stock options - USD ($) $ / shares in Units, shares in Thousands | 6 Months Ended | |
Jun. 27, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options outstanding (in shares) | 342 | 342 |
Weighted-average exercise price per share (in dollars per share) | $ 61.29 | |
Weighted-average grant-date fair value (in dollars per share) | $ 19.33 | |
Unrecognized compensation cost | $ 0 |
EQUITY AND STOCK-BASED COMPEN_8
EQUITY AND STOCK-BASED COMPENSATION - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | Jun. 27, 2020 | Dec. 31, 2019 |
FX forward contracts | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Unrealized gains (losses), net of tax, recorded in AOCI | $ 0 | $ (0.2) |
EQUITY AND STOCK-BASED COMPEN_9
EQUITY AND STOCK-BASED COMPENSATION - Common Stock in Treasury (Details) - USD ($) shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 27, 2020 | Jun. 29, 2019 | Mar. 27, 2020 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Purchases of common stock | $ 6,200,000 | $ 6,200,000 | $ 0 | |
Common Stock in Treasury | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Common stock surrendered as a means of funding income tax withholding requirements | $ 6,900,000 | $ 5,200,000 | ||
Common Stock | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 150,000,000 | |||
Common stock repurchases (in shares) | 195 | 200 |
LITIGATION, CONTINGENT LIABIL_2
LITIGATION, CONTINGENT LIABILITIES AND OTHER MATTERS - Narrative (Details) - USD ($) $ in Millions | Jun. 27, 2020 | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Exercise value of put option outstanding | $ 17.4 | $ 20.3 |
Value options exercisable | $ 9.7 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Valuation Allowance [Line Items] | ||||
Unrecognized tax benefits | $ 16,000,000 | $ 16,000,000 | ||
Unrecognized tax benefits, net | 15,000,000 | 15,000,000 | ||
Unrecognized tax benefits that would impact effective tax rate | 10,100,000 | 10,100,000 | ||
Unrecognized tax benefits, interest on income taxes accrued | 700,000 | 700,000 | ||
Unrecognized tax benefits, interest on income taxes accrued, net | 600,000 | 600,000 | ||
Unrecognized tax benefits, accrual for penalties | 0 | 0 | ||
Income tax provision | 3,900,000 | $ 11,500,000 | 3,000,000 | $ 22,200,000 |
Pre-tax income (loss) | $ 10,600,000 | $ 22,800,000 | $ 9,600,000 | $ 48,500,000 |
Effective income tax rate | 36.80% | 50.40% | 31.30% | 45.80% |
Impact of charge resulting from losses not expected to be realized | $ 6,000,000 | $ 4,900,000 | $ 7,000,000 | |
Deferred tax assets, valuation allowance | 1,600,000 | 5,100,000 | $ 1,600,000 | 5,100,000 |
Repatriation of foreign earnings | 7,200,000 | 7,200,000 | ||
Unremitted foreign earnings | 1,700,000 | 1,700,000 | ||
Deferred tax liability, change in basis | 2,000,000 | 2,000,000 | ||
Tax impact related to tax incentive of foreign subsidiary | $ 1,000,000 | $ 1,000,000 | ||
Tax benefit from subsidiary adjustments | 1,200,000 | |||
Income tax charge from losses in certain tax jurisdictions | 6,600,000 | |||
Minimum | ||||
Valuation Allowance [Line Items] | ||||
Reasonably possible decrease in unrecognized tax benefits | 500,000 | 500,000 | ||
Maximum | ||||
Valuation Allowance [Line Items] | ||||
Reasonably possible decrease in unrecognized tax benefits | $ 1,500,000 | $ 1,500,000 |
FAIR VALUE - Derivative Financi
FAIR VALUE - Derivative Financial Instruments (Details) - Forward contracts - USD ($) $ in Millions | Jun. 27, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Fair value of derivative contract, gross assets | $ 0 | $ 0.3 |
Fair value of derivative contract, gross liabilities | $ 0 | $ 0 |
FAIR VALUE - Equity Security In
FAIR VALUE - Equity Security Investment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |||||
Gain due to increase in estimated fair value of equity security | $ 5.3 | $ 1.6 | $ 5.3 | $ 7.8 | |
Asset value | $ 27.1 | $ 27.1 | $ 21.8 | ||
Proceeds received from sale of investment | $ 2.6 |
FAIR VALUE - Indebtedness and O
FAIR VALUE - Indebtedness and Other (Details) - USD ($) $ in Millions | Jun. 27, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other indebtedness | $ 15.7 | $ 20.7 |
Senior notes | 5.625% senior notes, due in August 2024 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Stated interest rate | 5.625% | |
Senior notes | 5.875% senior notes, due in August 2026 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Stated interest rate | 5.875% | |
Fair value, measurements, nonrecurring | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Term loans | $ 100 | 100 |
Other indebtedness | 15.7 | 20.7 |
Fair value, measurements, nonrecurring | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Term loans | 100 | 100 |
Other indebtedness | 15.7 | 20.7 |
Fair value, measurements, nonrecurring | Level 2 | Carrying Amount | Senior notes | 5.625% senior notes, due in August 2024 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior notes | 300 | 300 |
Fair value, measurements, nonrecurring | Level 2 | Carrying Amount | Senior notes | 5.875% senior notes, due in August 2026 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior notes | 300 | 300 |
Fair value, measurements, nonrecurring | Level 2 | Fair Value | Senior notes | 5.625% senior notes, due in August 2024 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior notes | 306 | 312 |
Fair value, measurements, nonrecurring | Level 2 | Fair Value | Senior notes | 5.875% senior notes, due in August 2026 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior notes | $ 306 | $ 316.5 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) - 5.625% senior notes, due in August 2024 - Senior notes - USD ($) $ in Millions | Jul. 16, 2020 | Jun. 27, 2020 | Dec. 31, 2019 |
Subsequent Event [Line Items] | |||
Stated interest rate | 5.625% | ||
Long-term debt | $ 300 | $ 300 | |
Subsequent event | |||
Subsequent Event [Line Items] | |||
Long-term debt | $ 300 | ||
Redemption price | 10280.00% |
Uncategorized Items - spxf-2020
Label | Element | Value |
Accounting Standards Update [Extensible List] | us-gaap_AccountingStandardsUpdateExtensibleList | us-gaap:AccountingStandardsUpdate201602Member |