Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 02, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-37548 | |
Entity Registrant Name | Welbilt, Inc. | |
Entity Central Index Key | 0001650962 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-4625716 | |
Entity Address, Address Line One | 2227 Welbilt Boulevard | |
Entity Address, City or Town | New Port Richey | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 34655 | |
City Area Code | 727 | |
Local Phone Number | 375-7010 | |
Title of 12(b) Security | Common stock, $0.01 par value | |
Trading Symbol | WBT | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 141,515,876 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Net sales | $ 298.5 | $ 410.5 | $ 833.4 | $ 1,212.1 |
Cost of sales | 193.2 | 259.6 | 544.9 | 778.4 |
Gross profit | 105.3 | 150.9 | 288.5 | 433.7 |
Selling, general and administrative expenses | 72.3 | 86.7 | 215.6 | 262.8 |
Amortization expense | 9.9 | 9.4 | 29.2 | 28.8 |
Restructuring and other expense (recovery) | 1.5 | (0.2) | 9.5 | 5.4 |
Loss from impairment and disposal of assets — net | 0.4 | 0.2 | 11.7 | 0.2 |
Earnings from operations | 21.2 | 54.8 | 22.5 | 136.5 |
Interest expense | 18.1 | 22.4 | 58.5 | 70.9 |
Other (income) expense — net | (0.6) | 2.9 | 0.8 | 11.5 |
Earnings (loss) before income taxes | 3.7 | 29.5 | (36.8) | 54.1 |
Income taxes | (1.2) | 9.4 | (9.2) | 16.6 |
Net earnings (loss) | $ 4.9 | $ 20.1 | $ (27.6) | $ 37.5 |
Per share data: | ||||
Earnings (loss) per share — Basic (in dollars per share) | $ 0.03 | $ 0.14 | $ (0.20) | $ 0.27 |
Earnings (loss) per share — Diluted (in dollars per share) | $ 0.03 | $ 0.14 | $ (0.20) | $ 0.27 |
Weighted average shares outstanding — Basic (in shares) | 141,512,207 | 141,072,179 | 141,481,963 | 140,893,966 |
Weighted average shares outstanding — Diluted (in shares) | 141,560,747 | 141,532,790 | 141,481,963 | 141,455,493 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings (loss) | $ 4.9 | $ 20.1 | $ (27.6) | $ 37.5 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | 11.8 | (8.8) | 1.7 | (1.3) |
Unrealized gain (loss) on derivatives | 0.5 | (0.7) | 0.7 | (3) |
Employee pension and postretirement benefits | (0.6) | 1.6 | 2.2 | 1.8 |
Total other comprehensive income (loss), net of tax | 11.7 | (7.9) | 4.6 | (2.5) |
Comprehensive income (loss) | $ 16.6 | $ 12.2 | $ (23) | $ 35 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 122.9 | $ 130.7 |
Restricted cash | 0.2 | 0 |
Accounts receivable, less allowance of $4.9 and $4.0, respectively | 161.8 | 183.6 |
Inventories — net | 192.4 | 186.4 |
Prepaids and other current assets | 67.9 | 28.2 |
Total current assets | 545.2 | 528.9 |
Property, plant and equipment — net | 126.7 | 127.5 |
Operating lease right-of-use assets | 42.5 | 39.9 |
Goodwill | 936.8 | 933.1 |
Other intangible assets — net | 471.8 | 507.7 |
Other non-current assets | 27.8 | 28.2 |
Total assets | 2,150.8 | 2,165.3 |
Current liabilities: | ||
Trade accounts payable | 102.4 | 104.4 |
Accrued expenses and other liabilities | 151.5 | 192.4 |
Current portion of long-term debt and finance leases | 3.4 | 1.2 |
Product warranties | 31.3 | 33.3 |
Total current liabilities | 288.6 | 331.3 |
Long-term debt and finance leases | 1,444.2 | 1,403.1 |
Deferred income taxes | 89.7 | 81.9 |
Pension and postretirement health liabilities | 27.2 | 32.8 |
Operating lease liabilities | 32.4 | 29.1 |
Other long-term liabilities | 35.7 | 34.1 |
Total non-current liabilities | 1,629.2 | 1,581 |
Commitments and contingencies | ||
Total equity: | ||
Common stock ($0.01 par value, 300,000,000 shares authorized, 141,513,415 shares and 141,213,995 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively) | 1.4 | 1.4 |
Additional paid-in capital (deficit) | (27.6) | (31) |
Retained earnings | 296.5 | 324.5 |
Accumulated other comprehensive loss | (36.9) | (41.5) |
Treasury stock, at cost, 61,556 shares and 58,935 shares, as of September 30, 2020 and December 31, 2019, respectively | (0.4) | (0.4) |
Total equity | 233 | 253 |
Total liabilities and equity | $ 2,150.8 | $ 2,165.3 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 4.9 | $ 4 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, issued (in shares) | 141,513,415 | 141,213,995 |
Common stock, outstanding (in shares) | 141,513,415 | 141,213,995 |
Treasury stock (in shares) | 61,556 | 58,935 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities | ||
Net earnings (loss) | $ (27.6) | $ 37.5 |
Adjustments to reconcile net (loss) earnings to cash used in operating activities: | ||
Depreciation expense | 16.1 | 16.4 |
Amortization of intangible assets | 30.2 | 28.8 |
Amortization of debt issuance costs | 3.9 | 3.6 |
Deferred income taxes | 10 | 0.5 |
Stock-based compensation expense | 2.3 | 6.2 |
Loss from impairment and disposal of assets | 11.7 | 0.2 |
Pension settlement | 0 | 1.2 |
Loss on remeasurement of debt and other realized foreign currency derivative | 0 | 0.3 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 21.9 | (371.1) |
Inventories | (5.5) | (9.3) |
Other assets | (32.4) | (2.1) |
Trade accounts payable | (1.8) | (37.9) |
Other current and long-term liabilities | (55.7) | 5.2 |
Net cash used in operating activities | (26.9) | (320.5) |
Cash flows from investing activities | ||
Cash receipts on beneficial interest in sold receivables | 0 | 280.7 |
Capital expenditures | (15.9) | (17.4) |
Acquisition of intangible assets | (0.2) | 0 |
Proceeds from maturity of short-term investment | 0 | 32 |
Other | (3.9) | 0.9 |
Net cash (used in) provided by investing activities | (20) | 296.2 |
Cash flows from financing activities | ||
Proceeds from long-term debt | 172.5 | 355 |
Repayments on long-term debt and finance leases | (131.2) | (267.2) |
Debt issuance costs | (2.1) | 0 |
Repayment of short-term borrowings | 0 | (15) |
Payment of contingent consideration | 0 | (0.8) |
Exercises of stock options | 1.1 | 3 |
Payments on tax withholdings for equity awards | (0.7) | (2.2) |
Net cash provided by financing activities | 39.6 | 72.8 |
Effect of exchange rate changes on cash | (0.3) | (3.9) |
Net (decrease) increase in cash and cash equivalents and restricted cash | (7.6) | 44.6 |
Balance at beginning of period | 130.7 | 73.2 |
Balance at end of period | 123.1 | 117.8 |
Supplemental disclosures of cash flow information: | ||
Cash paid for income taxes, net of refunds | 21.1 | 27.3 |
Cash paid for interest, net of related hedge settlements | 68.4 | 67.4 |
Supplemental disclosures of non-cash activities: | ||
Non-cash investing activity: Beneficial interest obtained in exchange for securitized receivables | 0 | 238.6 |
Non-cash financing activity: Reassessments and modifications of right-of-use assets and lease liabilities and assets obtained through leasing arrangements | $ 14.9 | $ 12.2 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Cumulative effect of accounting standards adoption | Common Stock | Additional Paid-In Capital (Deficit) | Retained Earnings | Retained EarningsCumulative effect of accounting standards adoption | Accumulated Other Comprehensive Loss | Treasury Stock | ||
Beginning balance (in shares) at Dec. 31, 2018 | 140,252,693 | |||||||||
Beginning balance at Dec. 31, 2018 | $ 186.4 | $ 0.2 | [1] | $ 1.4 | $ (41.5) | $ 268.4 | $ 0.2 | [1] | $ (41.6) | $ (0.3) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net earnings (loss) | (2.6) | (2.6) | ||||||||
Issuance of common stock, stock-based compensation plans (in shares) | 604,511 | |||||||||
Issuance of common stock, stock-based compensation plans | 0.6 | 0.6 | ||||||||
Stock-based compensation expense | 2.9 | 2.9 | ||||||||
Other comprehensive income (loss) | (2.2) | (2.2) | ||||||||
Ending balance (in shares) at Mar. 31, 2019 | 140,857,204 | |||||||||
Ending balance at Mar. 31, 2019 | 185.3 | $ 1.4 | (38) | 266 | (43.8) | (0.3) | ||||
Beginning balance (in shares) at Dec. 31, 2018 | 140,252,693 | |||||||||
Beginning balance at Dec. 31, 2018 | 186.4 | 0.2 | [1] | $ 1.4 | (41.5) | 268.4 | 0.2 | [1] | (41.6) | (0.3) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net earnings (loss) | 37.5 | |||||||||
Other comprehensive income (loss) | (2.5) | |||||||||
Ending balance (in shares) at Sep. 30, 2019 | 141,112,586 | |||||||||
Ending balance at Sep. 30, 2019 | 230.7 | $ 1.4 | (32.3) | 306.1 | (44.1) | (0.4) | ||||
Beginning balance (in shares) at Mar. 31, 2019 | 140,857,204 | |||||||||
Beginning balance at Mar. 31, 2019 | 185.3 | $ 1.4 | (38) | 266 | (43.8) | (0.3) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net earnings (loss) | 20 | 20 | ||||||||
Issuance of common stock, stock-based compensation plans (in shares) | 190,583 | |||||||||
Issuance of common stock, stock-based compensation plans | 2 | 2 | ||||||||
Stock-based compensation expense | 1.8 | 1.8 | ||||||||
Other comprehensive income (loss) | 7.6 | 7.6 | ||||||||
Ending balance (in shares) at Jun. 30, 2019 | 141,047,787 | |||||||||
Ending balance at Jun. 30, 2019 | 216.7 | $ 1.4 | (34.2) | 286 | (36.2) | (0.3) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net earnings (loss) | 20.1 | 20.1 | ||||||||
Issuance of common stock, stock-based compensation plans (in shares) | 64,799 | |||||||||
Issuance of common stock, stock-based compensation plans | 0.4 | 0.4 | ||||||||
Stock-based compensation expense | 1.5 | 1.5 | ||||||||
Other comprehensive income (loss) | (7.9) | (7.9) | ||||||||
Value of shares in deferred compensation plan | (0.1) | (0.1) | ||||||||
Ending balance (in shares) at Sep. 30, 2019 | 141,112,586 | |||||||||
Ending balance at Sep. 30, 2019 | $ 230.7 | $ 1.4 | (32.3) | 306.1 | (44.1) | (0.4) | ||||
Beginning balance (in shares) at Dec. 31, 2019 | 141,213,995 | 141,213,995 | ||||||||
Beginning balance at Dec. 31, 2019 | $ 253 | (0.4) | $ 1.4 | (31) | 324.5 | (0.4) | (41.5) | (0.4) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net earnings (loss) | (15.1) | (15.1) | ||||||||
Issuance of common stock, stock-based compensation plans (in shares) | 273,532 | |||||||||
Issuance of common stock, stock-based compensation plans | 1.1 | 1.1 | ||||||||
Stock-based compensation expense | 1 | 1 | ||||||||
Other comprehensive income (loss) | (26.6) | (26.6) | ||||||||
Ending balance (in shares) at Mar. 31, 2020 | 141,487,527 | |||||||||
Ending balance at Mar. 31, 2020 | $ 213 | $ 1.4 | (28.9) | 309 | (68.1) | (0.4) | ||||
Beginning balance (in shares) at Dec. 31, 2019 | 141,213,995 | 141,213,995 | ||||||||
Beginning balance at Dec. 31, 2019 | $ 253 | $ (0.4) | $ 1.4 | (31) | 324.5 | $ (0.4) | (41.5) | (0.4) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net earnings (loss) | (27.6) | |||||||||
Other comprehensive income (loss) | $ 4.6 | |||||||||
Ending balance (in shares) at Sep. 30, 2020 | 141,513,415 | 141,513,415 | ||||||||
Ending balance at Sep. 30, 2020 | $ 233 | $ 1.4 | (27.6) | 296.5 | (36.9) | (0.4) | ||||
Beginning balance (in shares) at Mar. 31, 2020 | 141,487,527 | |||||||||
Beginning balance at Mar. 31, 2020 | 213 | $ 1.4 | (28.9) | 309 | (68.1) | (0.4) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net earnings (loss) | (17.4) | (17.4) | ||||||||
Issuance of common stock, stock-based compensation plans (in shares) | 23,704 | |||||||||
Other comprehensive income (loss) | 19.5 | 19.5 | ||||||||
Ending balance (in shares) at Jun. 30, 2020 | 141,511,231 | |||||||||
Ending balance at Jun. 30, 2020 | 215.1 | $ 1.4 | (28.9) | 291.6 | (48.6) | (0.4) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net earnings (loss) | 4.9 | 4.9 | ||||||||
Issuance of common stock, stock-based compensation plans (in shares) | 2,184 | |||||||||
Stock-based compensation expense | 1.3 | 1.3 | ||||||||
Other comprehensive income (loss) | $ 11.7 | 11.7 | ||||||||
Ending balance (in shares) at Sep. 30, 2020 | 141,513,415 | 141,513,415 | ||||||||
Ending balance at Sep. 30, 2020 | $ 233 | $ 1.4 | $ (27.6) | $ 296.5 | $ (36.9) | $ (0.4) | ||||
[1] | Effective January 1, 2019, the Company adopted Accounting Standards Update ("ASU") 2016-02, "Leases (Topic 842)" with additional updates subsequently issued (collectively, "ASU 2016-02"). The cumulative effect of the change made to the Consolidated Statement of Equity as of January 1, 2019 for the adoption of ASU 2016-02 is the result of recognizing the remaining deferred gain associated with a previous sale-leaseback transaction. |
Business and Organization
Business and Organization | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Business and Organization | Business and Organization Welbilt, Inc. ("Welbilt" or the "Company") is one of the world’s leading commercial foodservice equipment companies leveraging a full suite of equipment capable of storing, cooking, holding, displaying, dispensing and serving in both hot and cold foodservice categories. Headquartered in New Port Richey, Florida, the Company was incorporated in Delaware in 2015 and became publicly traded in March 2016 after a spin-off from its former parent. The Company operates 19 manufacturing facilities globally at which it designs, manufactures and supplies best-in-class equipment for the global commercial foodservice market, consisting of commercial and institutional foodservice operators represented by full-service restaurants, quick-service restaurant chains, hotels, resorts, cruise ships, caterers, supermarkets, convenience stores, hospitals, schools and other institutions. The Company sells its products through a global network of over 5,000 distributors, dealers, buying groups and manufacturers' representatives. The Company manages its business in three geographic business segments: Americas, EMEA and APAC. The Americas segment includes the United States ("U.S."), Canada and Latin America. The EMEA segment consists of markets in Europe, including the Middle East, Africa, Russia and the Commonwealth of Independent States. The APAC segment consists primarily of markets in China, India, Australia, South Korea, Singapore, Philippines, Japan, Indonesia, Malaysia, Thailand, Hong Kong, Taiwan, New Zealand and Vietnam. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation The accompanying unaudited consolidated financial statements include the accounts of Welbilt and its subsidiaries and have been prepared by the Company, pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). The Company prepares its financial statements in accordance with accounting principles generally accepted in the U.S. ("U.S. GAAP"). All intercompany balances and transactions between the Company and its affiliates have been eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant items subject to such estimates and assumptions include inventory obsolescence costs, asset impairments, warranty costs, product liability costs, employee benefit programs, sales rebates, loss contingencies and the measurement of income tax assets and liabilities. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. On an ongoing basis, the Company evaluates these assumptions, judgments and estimates. Actual results may differ from these estimates. In the opinion of management, the consolidated financial statements contain all adjustments necessary for a fair statement of the results of operations and comprehensive income (loss) for the three and nine months ended September 30, 2020 and 2019, the financial position as of September 30, 2020 and December 31, 2019 and the cash flows for the nine months ended September 30, 2020 and 2019, and except as otherwise discussed herein, such adjustments consist only of those of a normal recurring nature. The interim results are not necessarily indicative of results that may be achieved in a full reporting year. Certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the SEC rules and regulations governing interim financial statements. However, the Company believes that the disclosures made in the unaudited consolidated financial statements and related notes are adequate to make the information presented not misleading. These consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2019. All dollar amounts, except share and per share amounts, are in millions of dollars unless otherwise indicated. Government Assistance The Company's policy for government assistance is to recognize the assistance when there is reasonable assurance that the Company has met the substantive conditions of and requirements for receiving the assistance. The government assistance is recorded as a reduction to the related expense for which the assistance relates. As a result of the COVID-19 pandemic, governments in various jurisdictions in which the Company operates have provided financial assistance designed to offset salary expenditures associated with companies maintaining their pre-COVID-19 employee headcount levels. The Company has applied and will continue to apply for such assistance programs where relevant requirements and conditions have been met. For the three and nine months ended September 30, 2020, the Company met the requirements to receive $6.0 million and $11.8 million, respectively, of government assistance in the form of cash, cost abatements and retention credits. As of September 30, 2020, the Company has a receivable for $2.5 million related to government assistance. Government assistance has been reflected as a reduction to the related expense for which the assistance relates as follows: (in millions) Three Months Ended Nine Months Ended September 30, 2020 September 30, 2020 Reduction to related expense (1) : Cost of sales $ 1.9 $ 3.1 Selling, general and administrative expenses 3.2 5.4 Total $ 5.1 $ 8.5 As of September 30, 2020, $3.3 million of government assistance was included as a reduction in capitalized labor, which is a component of "Inventories — net". This portion of government assistance will be recognized as a reduction to "Cost of sales" when the associated inventory is sold. Recently Adopted Accounting Pronouncements In August 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2018-15, "Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract," which aligns 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, with amortization expense being recorded in the same income statement expense line as the hosted service costs and over the expected term of the hosting arrangement. This standard was effective for the Company on January 1, 2020 and has been adopted prospectively for applicable implementation costs incurred subsequent to the effective date. In June 2016, the FASB issued ASU 2016-13 In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework- Changes to the Disclosure Requirements for Fair Value Measurement". The amendments in this update modify the disclosure requirements for fair value measurements in Topic 820, Fair Value Measurement and were adopted by the Company as of January 1, 2020. As this amendment contemplates changes in disclosures only there was no impact on the Company's consolidated financial condition or results of operations. Refer to Note 11, "Fair Value of Financial Instruments," for the additional required disclosures. In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" ("ASU 2020-04") to provide temporary optional expedients and exceptions to U.S. GAAP guidance on contract modifications, hedge accounting and other transactions affected by the expected market transition from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates. ASU 2020-04 is effective upon issuance and the Company may elect to apply the standard through December 31, 2022. This guidance primarily impacts the interest expense under the Company's 2016 Credit Facility which utilizes LIBOR as a basis. As the Company has not executed a modification of the interest component of this financial instrument and does not have related outstanding hedges in place as of September 30, 2020, the guidance has not impacted the Company's consolidated financial statements to date. The Company will evaluate the impact of adopting this guidance at the time such transition to an alternative reference rate occurs. Recently Issued Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes" ("ASU 2019-12"), which amends, and is intended to simplify, existing guidance related to the accounting for income taxes. ASU 2019-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted. This guidance is effective for the Company beginning January 1, 2021. The Company is currently evaluating the impact this new standard will have on the Company's consolidated financial statements subsequent to January 1, 2021. Recent accounting guidance not discussed is not applicable, did not have, or is not expected to have a material impact on the Company. |
Accounts Receivable Securitizat
Accounts Receivable Securitization | 9 Months Ended |
Sep. 30, 2020 | |
Transfers and Servicing [Abstract] | |
Accounts Receivable Securitization | Accounts Receivable Securitization Prior to its termination on March 13, 2019, the Company participated in a $110.0 million accounts receivable securitization program whereby the Company sold certain of its domestic trade accounts receivable and certain of its non-U.S. trade accounts receivable to a wholly-owned, bankruptcy-remote, foreign special purpose entity, which would in turn, sell, convey, transfer and assign to a third-party financial institution (the “Purchaser”), all the rights, title and interest in and to its pool of receivables. Upon termination of the program, the Purchaser had no recourse for uncollectible receivables. During the period of this program, cash receipts from the Purchaser at the time of the sale were classified as operating activities while cash receipts from the beneficial interest on sold receivables were classified as investing activities on the Consolidated Statements of Cash Flows. In connection with the termination of the accounts receivable securitization program during the first quarter of 2019, $156.9 million of accounts receivable sold under the program were reacquired in exchange for the outstanding deferred purchase price receivable and cash, which was provided by receipts of previously sold trade receivables. Cash receipts on the reacquired receivables were $149.7 million for the nine months ended September 30, 2019 and have been classified as an investing activity in the Company's Consolidated Statements of Cash Flows. As of June 30, 2019, the reacquired trade receivables had either been collected or reserved. |
Inventories - Net
Inventories - Net | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories - Net | Inventories — Net The components of "Inventories — net" are as follows: (in millions) September 30, December 31, 2020 2019 Inventories — net: Raw materials $ 90.9 $ 81.4 Work-in-process 14.3 14.2 Finished goods 91.4 95.0 Total inventories at FIFO cost 196.6 190.6 Excess of FIFO costs over LIFO value (4.2) (4.2) Total inventories — net $ 192.4 $ 186.4 |
Property, Plant and Equipment -
Property, Plant and Equipment - Net | 9 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment - Net | Property, Plant and Equipment — Net The components of "Property, plant and equipment — net" are as follows: (in millions) September 30, December 31, 2020 2019 Property, plant and equipment — net: Land $ 9.6 $ 9.7 Building and improvements 99.2 93.2 Machinery, equipment and tooling 229.9 223.3 Furniture and fixtures 8.0 7.6 Computer hardware and software for internal use 67.7 66.1 Construction in progress 14.6 22.0 Total cost 429.0 421.9 Less accumulated depreciation (302.3) (294.4) Total property, plant and equipment — net $ 126.7 $ 127.5 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets - Net | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets - Net | Goodwill and Other Intangible Assets — Net The Company's annual impairment tests of goodwill and intangible assets with indefinite lives are performed as of June 30 of each fiscal year and whenever a triggering event occurs between annual impairment tests. The Company's trademarks and tradenames are classified as indefinite-lived intangible assets as there are no regulatory, contractual, competitive, economic or other factors which limit the useful lives of these intangible assets. The indefinite-lived intangible asset impairment test is performed at the Company's unit of account level, which is the Americas, EMEA and APAC. The goodwill impairment test is performed for the Company's reporting units, which are the Americas, EMEA and APAC. During the first quarter of 2020, as a result of the decrease in demand for commercial foodservice equipment and aftermarket parts resulting from the COVID-19 pandemic and impacts on the Company's current and estimated future operating cash flows, management performed a review of the Company's goodwill and indefinite-lived intangible assets to determine whether it was more-likely-than-not that the fair value of such assets was less than their carrying amount as of March 31, 2020. This review included the Company's evaluation of relevant events and circumstances in totality that affect the fair value of the reporting units or indefinite-lived intangible assets. These events and circumstances include, but are not limited to, macroeconomic conditions (including the impact of COVID-19), industry and competitive environment conditions, overall financial performance, business specific events and market considerations. The majority of the Company's goodwill and indefinite-lived intangible assets were generated on a legacy basis and as a result have fair values that sufficiently exceed their underlying carrying values. However, additional goodwill and indefinite-lived intangible assets attributable to the EMEA and APAC regions were generated as a result of a recent acquisition in April 2018. Management's review concluded for each of its reporting units and for the Americas indefinite-lived intangible assets that it is not more-likely-than-not that the fair value is less than the carrying amount based on the preponderance of evidence. Therefore, no impairment was indicated and no impairment test was required to be performed as of March 31, 2020. However, for both the EMEA and APAC indefinite-lived intangible assets, the review indicated, based on limited fair value cushion and overall financial performance expectations, that it is more-likely-than-not that the fair value of the indefinite-lived intangible assets is less than the carrying amount and, therefore, a quantitative impairment test was performed as of March 31, 2020. The Company estimated the fair value of the EMEA and APAC indefinite-lived intangible assets based on an income approach using the relief-from-royalty method. This approach was dependent upon several factors, including estimates of future growth and trends, royalty rates, discount rates and other variables. Management based its fair value estimates on assumptions believed to be reasonable, but which are inherently uncertain and could materially affect the valuations. These estimated fair values were then compared to the carrying values of the relevant indefinite-lived intangible asset and to the extent the carrying value exceeded the estimated fair value, an impairment loss was recognized in the amount by which the carrying amount of the asset exceeded the estimated fair value of the asset. As of March 31, 2020, the Company determined that the carrying value of the indefinite-lived intangible assets in the EMEA region exceeded their estimated fair value and as a result, an impairment charge of $11.1 million was recorded for the first quarter of 2020. This impairment charge has been reflected as a component of "Loss from impairment and disposal of assets — net" for the nine months ended September 30, 2020. Management determined that the fair value of the indefinite-lived intangible assets in the APAC region exceeded the carrying value of these assets and, therefore, concluded there was no impairment of these assets as of March 31, 2020. As of June 30, 2020, the Company performed its annual impairment testing for its goodwill reporting units, as well as its indefinite-lived intangible assets, and based on those results, no impairment was indicated. The Company estimated the fair value of the indefinite-lived intangible assets based on an income approach using the relief-from-royalty method. This approach was dependent upon several factors, including estimates of future growth and trends, royalty rates, discount rates and other variables. Management based its fair value estimates on assumptions believed to be reasonable, but which are inherently uncertain and could materially affect the valuations. For each of the Company's regions, the estimated fair values of the relevant indefinite-lived intangible assets was greater than or approximated the carrying values, resulting in no impairment of the relevant assets. Although no reporting units failed the annual impairment testing, in management’s opinion, the indefinite-lived intangible assets in the EMEA region are at risk of impairment in the near term if there is a negative change in the future financial performance of the EMEA region. As of both September 30, 2020 and June 30, 2020, the carrying value of the indefinite-lived intangible assets approximate fair value as a result of an impairment charge recorded during the first quarter of 2020, as discussed above. The duration and severity of the COVID-19 pandemic or other industry or competitive changes could result in future impairment charges to the Company's goodwill and remaining indefinite-lived intangible assets. Despite management's implemented strategies to address these events, a prolonged or more pronounced effect of the COVID-19 pandemic could negatively impact the results of operations and future financial performance expectations, resulting in changes in operating plans, or cause other adverse changes in the business, the foodservice industry or the macroeconomic environment, such as interest rate changes, that could trigger an impairment in the future. The changes in the carrying amount of goodwill by geographic business segment are as follows: (in millions) Americas EMEA APAC Total Gross balance as of December 31, 2019 $ 1,144.8 $ 284.1 $ 19.9 $ 1,448.8 Accumulated asset impairments (312.2) (203.5) — (515.7) Net balance as of December 31, 2019 $ 832.6 $ 80.6 $ 19.9 $ 933.1 Foreign currency impact $ — $ 3.4 $ 0.3 $ 3.7 Gross balance as of September 30, 2020 1,144.8 287.5 20.2 1,452.5 Accumulated asset impairments (312.2) (203.5) — (515.7) Net balance as of September 30, 2020 $ 832.6 $ 84.0 $ 20.2 $ 936.8 The gross carrying amounts, impairment charges and accumulated amortization of the Company's intangible assets, other than goodwill, are as follows: (in millions) September 30, 2020 December 31, 2019 Gross Impairment Charges Accumulated Net Gross Accumulated Net Customer relationships $ 475.1 $ — $ (263.9) $ 211.2 $ 472.8 $ (243.6) $ 229.2 Trademarks and trade names 219.7 (11.1) — 208.6 217.6 — 217.6 Other intangibles 169.6 — (121.2) 48.4 166.9 (109.8) 57.1 Patents 5.8 — (2.2) 3.6 5.8 (2.0) 3.8 Total $ 870.2 $ (11.1) $ (387.3) $ 471.8 $ 863.1 $ (355.4) $ 507.7 |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 9 Months Ended |
Sep. 30, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Liabilities | Accrued Expenses and Other Liabilities The components of "Accrued expenses and other liabilities" are as follows: (in millions) September 30, December 31, 2020 2019 Accrued expenses and other liabilities: Accrued rebates and commissions $ 36.1 $ 56.2 Miscellaneous accrued expenses 37.1 37.8 Employee related expenses 38.8 34.7 Interest payable 5.9 15.8 Operating lease liabilities 9.6 10.0 Restructuring liabilities 3.7 6.3 Business Transformation Program related expenses 2.2 5.8 Derivative liabilities 0.3 5.0 Income and other taxes payable 7.7 11.2 Deferred revenues 2.7 3.1 Customer deposits 3.7 3.1 Pension and postretirement health liabilities 2.1 2.1 Product liabilities 1.6 1.3 Total accrued expenses and other liabilities $ 151.5 $ 192.4 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesThe Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") was enacted on March 27, 2020 and includes many measures intended to assist companies during the COVID-19 pandemic including temporary changes to income and non-income-based tax laws, some of which were enacted under the Tax Cuts and Jobs Act ("Tax Act") in 2017. As a result of the Tax Act and the CARES Act, additional legislative and regulatory guidance has been and may continue to be issued, including final regulations that could impact the Company's effective tax rate in future periods. For the three months ended September 30, 2020, the Company recorded a $1.2 million income tax benefit, reflecting a (32.4)% effective tax rate, compared to a $9.4 million income tax provision for the three months ended September 30, 2019, reflecting a 31.9% effective tax rate. The change in the effective tax rate for the three months ended September 30, 2020 compared to the same period of the prior year is primarily the result of the Company's decrease in earnings before income taxes and changes in discrete tax items as a result of the change in uncertain tax positions, CARES Act net operating loss carryback provisions and the relative weighting of jurisdictional income and loss. For the three months ended September 30, 2020, the income tax benefit is primarily comprised of a net discrete benefit of $1.2 million, primarily related to the uncertain tax position for net interest deduction limitations, and changes in discrete tax items related to the CARES Act net operating loss carryback provisions. For the nine months ended September 30, 2020, the Company recorded a $9.2 million income tax benefit, reflecting a 25.0% effective tax rate, compared to a $16.6 million income tax provision, reflecting a 30.7% effective tax rate, for the nine months ended September 30, 2019. The change in the effective tax rate for the nine months ended September 30, 2020 compared to the same period of the prior year is primarily the result of the Company's decrease in earnings before income taxes, changes in discrete tax items associated with the CARES Act including changes allowing for net operating loss carryback provisions and the relative weighting of jurisdictional income and loss. For the nine months ended September 30, 2020, the income tax benefit includes net discrete expenses of $5.0 million primarily related to provisions of the CARES Act discussed above compared to $0.7 million discrete expenses related to stock-based compensation and foreign tax adjustments for the nine months ended September 30, 2019. The Company’s effective tax rate for the three months ended September 30, 2020 varies from the 21.0% U.S. federal statutory rate primarily due to discrete tax items generated from the provisions of the CARES Act for net operating loss carryback and interest limitations, changes in uncertain tax positions for foreign income subject to U.S. tax, foreign income or loss before income taxes and relative weighting of foreign earnings before income taxes. The Company's effective tax rate for the nine months ended September 30, 2020 varies from the 21.0% U.S. federal statutory rate for the items discussed for the three months ended September 30, 2020 as well as the impact of the indefinite-lived intangible asset impairment in the Company's EMEA region. The Company’s effective tax rates for the three and nine months ended September 30, 2019 vary from the 21.0% U.S. federal statutory rate primarily due to the relative weighting of foreign earnings before income taxes, discrete tax items and taxes on foreign income. Foreign earnings are generated from operations in all of the Company’s three geographic segments, Americas, EMEA and APAC. As of each reporting date, the Company’s management considers new evidence, both positive and negative, that could impact management’s view regarding the future realization of deferred tax assets. The Company will continue to evaluate its valuation allowance requirements, including the U.S. interest expense limitation of the Tax Act, as temporarily modified under the CARES Act. Due to the revised interest deduction limitations of the CARES Act, the Company has determined that a valuation allowance is not required for the deferred tax asset associated with the U.S. interest expense as of September 30, 2020. The Company may adjust its deferred tax asset valuation allowances based on possible sources of taxable income that may be available to realize a tax benefit for deferred tax assets. As facts and circumstances change, the Company may adjust its deferred tax asset valuation allowances accordingly. Such changes in the deferred tax asset valuation allowances will be reflected in current operations through the Company’s income tax provision and could have a material effect on the Company’s operating results. The Company's unrecognized tax benefits, including interest and penalties, were $7.1 million and $4.2 million as of September 30, 2020, and December 31, 2019, respectively. During the next twelve months, it is reasonably possible that unrecognized tax benefits could change in the range of $0.6 million to $1.0 million due to the expiration of relevant statutes of limitations and federal, state and foreign tax audit resolutions. As of September 30, 2020 and December 31, 2019 the Company's Consolidated Balance Sheets includes $49.1 million and $11.3 million, respectively, of income tax receivables, classified within "Prepaids and other current assets." The Company regularly assesses the likelihood of an adverse outcome resulting from examinations to determine the adequacy of its tax reserves. The Company is currently under audit by the tax authorities in Germany for the years 2015-2018 and in the U.S. for the 2017-2018 federal income tax returns as well as various other state income tax and jurisdictional audits. As of September 30, 2020, the Company believes that it is more-likely-than-not that the tax positions it has taken will be sustained upon the resolution of its audits resulting in no material impact on its consolidated financial position, results of operations and cash flows. However, the final determination with respect to any tax audits, and any related litigation, could be materially different from the Company's estimates and/or from its historical income tax provisions and accruals and could have a material effect on operating results and/or cash flows in the periods for which that determination is made. In addition, future period earnings may be adversely impacted by litigation costs, settlements, penalties and/or interest assessments. As of September 30, 2020, the Company intends to continue reinvesting foreign earnings indefinitely outside of the U.S. with certain limited exceptions, and has not recorded a deferred tax liability for U.S. state income taxes, foreign withholding or other foreign income taxes that would be due if cash is repatriated to the U.S. because those foreign earnings are considered permanently reinvested or may be remitted substantially free of any additional income or withholding taxes. While the Company does not anticipate a need to repatriate funds to the U.S. to satisfy domestic liquidity needs, management reviews cash positions regularly and, to the extent it is determined that all or a portion of foreign earnings will not remain indefinitely reinvested, the Company will record a liability for the additional taxes, if applicable, including foreign withholding taxes and U.S. state income taxes. Further, the determination of the amount of the unrecognized deferred tax liability related to the undistributed earnings is not practicable. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt The carrying value of the Company's outstanding debt consists of the following: (in millions, except percentage data) September 30, 2020 December 31, 2019 Carrying Value Weighted Average Interest Rate Carrying Value Weighted Average Interest Rate Long-term debt and finance leases: Revolving Credit Facility $ 182.9 4.16 % $ 141.8 5.00 % Term Loan B Facility 855.0 3.61 % 855.0 5.11 % 9.50% Senior Notes due 2024 425.0 9.73 % 425.0 9.72 % Finance leases 1.9 4.76 % 2.5 4.83 % Total debt and finance leases, including current portion 1,464.8 1,424.3 Less current portion: Term Loan B Facility (2.5) — Finance leases (0.9) (1.2) Unamortized debt issuance costs (1) (17.6) (20.5) Hedge accounting fair value adjustment (2) 0.4 0.5 Total long-term debt and finance leases $ 1,444.2 $ 1,403.1 (1) Total debt issuance costs, net of amortization as of September 30, 2020 and December 31, 2019, were $21.5 million and $23.0 million, respectively, of which $3.9 million and $2.5 million, respectively, are related to the Revolving Credit Facility (as defined below) and recorded in "Other non-current assets" in the Consolidated Balance Sheets. (2) Balance represents deferred gains from the terminations of interest rate swaps designated as fair value hedges. In March 2016, the Company entered into a credit agreement, as amended, restated, supplemented or otherwise modified from time to time (the "2016 Credit Agreement") for a $1,300.0 million Senior Secured Credit Facility consisting of (i) a senior secured Term Loan B facility in an aggregate principal amount of $900.0 million (the "Term Loan B Facility") and (ii) a senior secured revolving credit facility in an aggregate principal amount of $400.0 million (the "Revolving Credit Facility"). The 2016 Credit Agreement also provides for (i) a sublimit for the issuance of letters of credit under the revolving commitments up to $30.0 million and (ii) an aggregate principal amount of allowed incremental revolving or term loan facilities thereunder in an amount not to exceed the sum of (a) $275.0 million plus (b) an additional amount, as long as after giving effect to the incurrence of such additional amount, the pro forma secured leverage ratio does not exceed 3.75:1.00. The maturities of the Term Loan B Facility and Revolving Credit Facility are October 2025 and October 2023, respectively. Through the first half of 2019, borrowings under the 2016 Credit Agreement bore interest at a rate per annum equal to, at the Company's option, either (i) LIBOR plus an applicable margin of 2.50% for the Term Loan B Facility and 1.50% to 2.50% for the Revolving Credit Facility (depending on the Company's Consolidated Total Leverage Ratio) or (ii) an alternate base rate plus an applicable margin that is 1.00% less than the LIBOR-based applicable margin. Beginning in the third quarter of 2019, the spreads for LIBOR and alternate base rate borrowings for the Revolving Credit Facility were 2.25% and 1.25%, respectively. Beginning in the second quarter of 2020, the spreads for LIBOR and alternate base rate borrowings for the Revolving Credit Facility were 2.50% and 1.50%, respectively, as a result of the Company's Consolidated Total Leverage Ratio as of March 31, 2020. The 2016 Credit Agreement contains financial covenants including, but not limited to (a) a Consolidated Interest Coverage Ratio, which measures the ratio of (i) Consolidated EBITDA to (ii) Consolidated Interest Expense, and (b) a Consolidated Total Leverage Ratio, which measures the ratio of (i) Consolidated Indebtedness to (ii) Consolidated EBITDA for the most recent four fiscal quarters, in each case, as defined in the 2016 Credit Agreement. On April 17, 2020, the Company entered into Amendment No. 7 (the “Amendment”) to the 2016 Credit Agreement, to amend the financial covenants of the Revolving Credit Facility to prevent non-compliance with these financial covenants for the quarter ended June 30, 2020 resulting from the impact of the COVID-19 pandemic on the commercial foodservice industry and the resulting decrease in demand for the Company's products. The terms of the Amendment, among other items, (i) suspend the Consolidated Total Leverage Ratio and Consolidated Interest Coverage Ratio covenants, in each case, as defined in the 2016 Credit Agreement, for four fiscal quarters through March 31, 2021 ("Suspension Period") and (ii) temporarily replace the suspended covenants with a Minimum Consolidated EBITDA covenant and a Maximum Capital Expenditure covenant, each computed on a trailing four quarters basis and measured quarterly and a Minimum Liquidity covenant that is measured monthly, each as defined in the Amendment, throughout the Suspension Period, with the Minimum Liquidity covenant extending through June 30, 2021. Beginning in the second quarter of 2021, the Consolidated Total Leverage Ratio and Consolidated Interest Coverage Ratio covenants will be reinstated at modified levels as compared to the covenants in effect beginning June 30, 2020 and will phase-in to the pre-Amendment covenant levels by the fourth quarter of 2021. The Amendment prohibits draws under the Revolving Credit Facility (i) if the Company has not evidenced compliance with the financial covenants for the year ended December 31, 2021 by delivery of a compliance certificate within 90 days, and (ii) to the extent the draw would result in a consolidated cash balance of $100.0 million or greater (excluding cash held in China) through December 31, 2021, with the exception of draws to meet cash uses anticipated in the ordinary course of business that are expected to be paid within 10 days of the draw. The Amendment also includes additional limitations on restricted payments, investments and other actions that are otherwise allowed under the 2016 Credit Agreement, with a $25.0 million carve-out for general investments. These limitations expire on December 31, 2021. The Amendment also includes a quarterly fee applicable through the fourth quarter of 2021 in an amount equal to a per annum rate of 0.50% on the average outstanding balance of the Revolving Credit Facility payable on a quarterly basis. The Company incurred total debt issuance costs in connection with this Amendment of $2.1 million, which were capitalized and included as a component of "Other non-current assets" on the Company's Consolidated Balance Sheets and will be amortized through the maturity of the Revolving Credit Facility. As of September 30, 2020, the Company had $7.1 million in outstanding stand-by letters of credit and $210.0 million available for additional borrowings under the Revolving Credit Facility, to the extent the Company's compliance with financial covenants permits such borrowings. As of September 30, 2020, the Company also had $1.7 million in other outstanding letters of credit or guarantees of payment to certain third-parties in accordance with commercial terms and conditions which did not reduce the amount available for additional borrowing under the Revolving Credit Facility. The Company has estimated the negative impact of COVID-19 on its financial position, results of operations and cash flows; however, due to the inherent uncertainty of the severity and duration of the COVID-19 pandemic on the Company's business, management's estimates of the achievement of its financial covenants may change in the future. In the second and third quarters of 2020, the Company executed contingency plans for its operations and reduced operating expenses and capital spending as necessary, including reductions in the size of the Company's workforce and temporary employee furloughs. As of September 30, 2020, the Company was in compliance with all affirmative and negative covenants pertaining to its financing arrangements. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Company's risk management objective is to ensure that business exposures to risks that have been identified and measured and are capable of being controlled are minimized or managed using what the Company believes to be the most effective and efficient methods to eliminate, reduce or transfer such exposures. Operating decisions consider these associated risks and the Company structures transactions to minimize or manage these risks whenever possible. The primary risks the Company manages using derivative instruments are interest rate risk, commodity price risk and foreign currency exchange risk. The Company enters into interest rate swap agreements to manage interest rate risk associated with the Company’s fixed and floating-rate borrowings. Cross-currency interest rate swaps are entered into to protect the value of the Company’s investments in its foreign subsidiaries. Swap contracts on various commodities are used to manage the price risk associated with forecasted purchases of materials used in the Company's manufacturing process. The Company also enters into various foreign currency derivative instruments to manage foreign currency risk associated with its projected purchases and sales and foreign currency denominated receivable and payable balances. The Company recognizes all derivative instruments as either assets or liabilities at fair value in the Consolidated Balance Sheets. Commodity swaps and foreign currency exchange contracts are designated as cash flow hedges of forecasted purchases of commodities and currencies, certain interest rate swaps are designated as cash flow hedges of floating-rate borrowings, and the remainder of the instruments are designated as fair value hedges of fixed-rate borrowings and a cross-currency interest rate swap as a hedge of net investments in its foreign subsidiaries. Discontinuance of Cash Flow Hedge Accounting for Commodity Contracts Through September 30, 2019 the Company designated all of its commodity derivative contracts as cash flow hedges, for which unrealized changes in fair value were recorded to "Accumulated other comprehensive loss" ("AOCI") in the Company's Consolidated Balance Sheets, to the extent the commodity hedges were effective. As of October 1, 2019, the Company elected to de-designate all of its commodity derivative contracts and as a result, the Company now recognizes all future gains and losses from changes in the fair value of the commodity derivative immediately in earnings. As a result of discontinuing hedge accounting effective October 1, 2019, the associated amounts in AOCI as of September 30, 2019 remained in AOCI and have been reclassified into earnings when the original hedged transaction affects earnings or it becomes probable that the forecasted transactions will not occur. Cash flow hedging strategy For derivative instruments that are designated and qualify as cash flow hedges, the gain or loss on the derivative is recorded in AOCI in the Company's Consolidated Balance Sheets and is subsequently reclassified into earnings in the periods in which the hedged transaction affects earnings. During the next twelve months, the Company estimates $0.1 million of unrealized gains, net of tax, related to currency rate and commodity price hedging will be reclassified from AOCI into earnings. Foreign currency and commodity hedging, prior to de-designation, is generally completed prospectively on a rolling basis for 15 and 36 months, respectively, depending on the type of risk being hedged. In March 2017, the Company entered into two interest rate swap agreements with a total notional amount of $600.0 million, to manage interest rate risk exposure by converting the Company’s floating-rate debt to a fixed-rate basis, thus reducing the impact from fluctuations in interest rates on future interest expense. These interest rate swap agreements involved the receipt of floating rate amounts in exchange for fixed rate interest payments over the life of the agreements without an exchange of the underlying principal. These interest rate swap agreements with notional amounts of $425.0 million and $175.0 million matured in the first quarter of 2020 and 2019, respectively. The Company's outstanding currency forward contracts entered into as hedges of forecasted transactions are as follows: Currency (in millions) Units Hedged September 30, December 31, 2020 2019 Canadian Dollar 6.6 8.0 Euro 4.1 7.6 British Pound 7.4 8.0 Mexican Peso 91.4 111.3 Singapore Dollar 2.0 2.0 The effects of the Company's derivative instruments on the Consolidated Statements of Comprehensive Income (Loss) and Consolidated Statements of Operations for gains or losses initially recognized in AOCI in the Consolidated Balance Sheets are as follows: Derivatives in cash flow hedging relationships Pretax gain/(loss) recognized in AOCI Pretax gain/(loss) reclassified from AOCI into income (in millions) Three Months Ended September 30, Location Three Months Ended September 30, 2020 2019 2020 2019 Foreign currency exchange contracts $ 0.4 $ (0.5) Cost of sales $ (0.1) $ (0.1) Commodity contracts — (0.5) Cost of sales (0.1) (0.4) Interest rate swap contracts — 0.1 Interest expense — 0.6 Total $ 0.4 $ (0.9) $ (0.2) $ 0.1 Derivatives in cash flow hedging relationships Pretax gain/(loss) recognized in AOCI Pretax gain/(loss) reclassified from AOCI into income (in millions) Nine Months Ended September 30, Location Nine Months Ended September 30, 2020 2019 2020 2019 Foreign currency exchange contracts $ (0.5) $ — Cost of sales $ (0.5) $ (0.7) Commodity contracts — (1.3) Cost of sales (0.9) (0.7) Interest rate swap contracts — (1.6) Interest expense — 2.5 Total $ (0.5) $ (2.9) $ (1.4) $ 1.1 Fair value hedging strategy For derivative instruments that qualify and are designated as a fair value hedge (i.e. hedging the exposure to changes in the fair value of an asset or a liability or an identified portion thereof that is attributable to a particular risk), the gain or loss on the derivative instrument as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in the same line item associated with the hedged item in the Company's Consolidated Statements of Operations. In October 2017, the Company entered into an interest rate swap agreement with a total notional amount of $425.0 million to manage interest rate risk exposure by converting the Company’s fixed-rate debt to a floating-rate basis. This agreement involved the receipt of fixed rate amounts in exchange for floating rate interest payments over the life of the agreement without an exchange of the underlying principal and had a scheduled maturity of February 2024. In June 2019, this interest rate swap agreement was terminated, and the Company received cash in the amount of $14.0 million, representing the fair value of the swap and interest accrued through the date of termination. Effect of Fair Value and Cash Flow Derivative Instruments on Consolidated Statements of Operations The table below presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Operations: (in millions) Location and amount of gain/(loss) recognized on effect of fair value and cash flow derivative instruments Three Months Ended Three Months Ended September 30, 2020 September 30, 2019 Cost of Sales Interest Expense Cost of Sales Interest Expense Total amounts of expense line items presented in the Consolidated Statements of Operations in which effects of fair value and cash flow hedges are recorded $ 193.2 $ 18.1 $ 259.6 $ 22.4 The effects of fair value and cash flow hedging: Gain/(loss) on fair value hedging relationship: Interest rate contract: Hedged item $ — $ — $ — $ 0.1 Gain/(loss) on cash flow hedging relationships: Foreign currency exchange contracts: Amount of gain/(loss) reclassified from AOCI into income $ (0.1) $ — $ (0.1) $ — Commodity contracts: Amount of gain/(loss) reclassified from AOCI into income $ (0.1) $ — $ (0.4) $ — Interest rate contracts: Amount of gain/(loss) reclassified from AOCI into income $ — $ — $ — $ 0.6 (in millions) Location and amount of gain/(loss) recognized on effect of fair value and cash flow derivative instruments Nine Months Ended Nine Months Ended September 30, 2020 September 30, 2019 Cost of Sales Interest Expense Cost of Sales Interest Expense Total amounts of expense line items presented in the Consolidated Statements of Operations in which effects of fair value and cash flow hedges are recorded $ 544.9 $ 58.5 $ 778.4 $ 70.9 The effects of fair value and cash flow hedging: Gain/(loss) on fair value hedging relationship: Interest rate contract: Hedged Item $ — $ 0.1 $ — $ (14.2) Derivative designated as hedging instrument $ — $ — $ — $ 13.3 Gain/(loss) on cash flow hedging relationships: Foreign currency exchange contracts: Amount of gain/(loss) reclassified from AOCI into income $ (0.5) $ — $ (0.7) $ — Commodity contracts: Amount of gain/(loss) reclassified from AOCI into income $ (0.9) $ — $ (0.7) $ — Interest rate contracts: Amount of gain/(loss) reclassified from AOCI into income $ — $ — $ — $ 2.5 Hedge of net investment in foreign operations strategy For derivative instruments that qualify and are designated as a hedge of a net investment in a foreign currency, the gain or loss is reported in AOCI as a component of the cumulative translation adjustment. Amounts are reclassified out of AOCI into earnings when the hedged net investment is either sold or substantially liquidated. In March 2017, the Company entered into a three-year cross-currency interest rate swap contract ("CCS") for a notional value of €50.0 million to protect the value of its net investment in Euros. Prior to its expiration in March 2020, the carrying value of the net investment in Euros was designated as a hedging instrument and remeasured at each reporting date to reflect the changes in the foreign currency exchange spot rate, with changes since the last remeasurement date recorded in AOCI. Upon expiration of the CCS in March 2020, the Company paid $4.1 million representing the final notional exchange at the expiration date spot exchange rate, which has been classified as an investing activity in the Company's Consolidated Statements of Cash Flows. The location and effects of the net investment hedge on the Consolidated Statements of Comprehensive Income (Loss) and Consolidated Statements of Operations are as follows: Derivative in net investment hedging relationship Pretax gain/(loss) recognized in AOCI Gain/(loss) reclassified from AOCI into income Gain/(loss) recognized in income (amount excluded from effectiveness testing) (in millions) Three Months Ended Location Three Months Ended Location Three Months Ended September 30, September 30, September 30, 2020 2019 2020 2019 2020 2019 Interest rate swap contract $ — $ 2.7 N/A $ — $ — Other (income) expense — net $ — $ 0.4 N/A = Not applicable Derivatives in net investments hedging relationships Pretax gain/(loss) recognized in AOCI Gain/(loss) reclassified from AOCI into income Gain/(loss) recognized in income (amount excluded from effectiveness testing) (in millions) Nine Months Ended Location Nine Months Ended Location Nine Months Ended September 30, September 30, September 30, 2020 2019 2020 2019 2020 2019 Interest rate swap contract $ (0.8) $ 4.0 N/A $ — $ — Other (income) expense — net $ 0.3 $ 1.2 N/A = Not applicable Derivatives Not Designated as Hedging Instruments The Company enters into commodity and foreign currency exchange contracts that are not designated as hedge relationships to offset, in part, the impact of certain intercompany transactions and to further mitigate certain other short-term commodity and currency impacts, as identified. For derivative instruments that are not designated as hedging instruments, the gains or losses on the derivatives are recognized in current earnings within "Other (income) expense — net" in the Consolidated Statements of Operations. The Company had the following outstanding commodity and currency forward contracts that were not designated as hedging instruments: Commodity Contracted Units Unit September 30, December 31, 2020 2019 Aluminum 133 524 MT Copper 51 269 MT Steel — 1,778 Short tons Currency (in millions) Contracted Units September 30, December 31, 2020 2019 Singapore Dollar 28.4 28.4 Euro 84.1 75.6 British Pound 6.5 20.3 Mexican Peso 13.2 11.8 Swiss Franc 7.0 7.0 Canadian Dollar 1.2 1.3 The location and impact on the Consolidated Statements of Operations for gains or losses related to derivative instruments not designated as hedging instruments are as follows: Derivatives NOT designated as hedging instruments Amount of gain/(loss) recognized in income on derivative Location of gain/(loss) recognized in income on derivative (in millions) Three Months Ended September 30, 2020 2019 Foreign currency exchange contracts $ (2.1) $ 3.6 Other (income) expense — net Commodity contracts 0.1 — Other (income) expense — net Total $ (2.0) $ 3.6 Derivatives NOT designated as hedging instruments Amount of gain/(loss) recognized in income on derivative Location of gain/(loss) recognized in income on derivative (in millions) Nine Months Ended September 30, 2020 2019 Foreign currency exchange contracts $ (2.1) $ 9.3 Other (income) expense — net Commodity contracts (0.3) — Other (income) expense — net Total $ (2.4) $ 9.3 The fair value of outstanding derivative contracts recorded as assets in the Consolidated Balance Sheets are as follows: (in millions) Balance Sheet Location Asset Derivatives September 30, December 31, 2020 2019 Derivatives designated as hedging instruments: Foreign currency exchange contracts Prepaids and other current assets $ 0.2 $ 0.8 Total derivatives designated as hedging instruments $ 0.2 $ 0.8 Derivatives NOT designated as hedging instruments: Foreign currency exchange contracts Prepaids and other current assets $ 0.2 $ 0.4 Total derivatives NOT designated as hedging instruments $ 0.2 $ 0.4 Total asset derivatives $ 0.4 $ 1.2 The fair value of outstanding derivative contracts recorded as liabilities in the Consolidated Balance Sheets are as follows: (in millions) Balance Sheet Location Liability Derivatives September 30, December 31, 2020 2019 Derivatives designated as hedging instruments: Foreign currency exchange contracts Accrued expenses and other liabilities $ 0.1 $ 0.6 Interest rate swap contracts Accrued expenses and other liabilities — 3.2 Total derivatives designated as hedging instruments $ 0.1 $ 3.8 Derivatives NOT designated as hedging instruments: Foreign currency exchange contracts Accrued expenses and other liabilities $ 0.1 $ 0.6 Commodity contracts Accrued expenses and other liabilities 0.1 0.6 Total derivatives NOT designated as hedging instruments $ 0.2 $ 1.2 Total liability derivatives $ 0.3 $ 5.0 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments In accordance with the Company's policy, fair value is defined as the amount 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. The policy classifies the inputs used to measure fair value into the following hierarchy: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities Level 2 Unadjusted quoted prices in active markets for similar assets or liabilities, or Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or Inputs other than quoted prices that are observable for the asset or liability Level 3 Unobservable inputs for the asset or liability Interim Disclosures About Fair Value of Financial Instruments The Company utilizes the best available information in measuring fair value. The carrying values of cash and cash equivalents, accounts receivable and trade accounts payable approximate fair value, without being discounted, as of September 30, 2020 and December 31, 2019, as applicable, due to the short-term nature of these instruments. The Company records its Revolving Credit Facility, Term Loan B Facility and Senior Notes at their carrying values on the Company's Consolidated Balance Sheets, as disclosed in Note 9, "Debt." The carrying value of the Revolving Credit Facility approximates its fair value due to the short-term variable interest rates of the borrowings. The Company estimates the fair value of the Term Loan B Facility and the Senior Notes based on quoted market prices of the instruments. Because these instruments are typically thinly traded, the assets and liabilities are classified as Level 2 within the fair value hierarchy. The fair value of the Company's Term Loan B Facility was approximately $780.2 million and $860.9 million as of September 30, 2020 and December 31, 2019, respectively. The fair value of the Company's Senior Notes was approximately $435.8 million and $450.9 million as of September 30, 2020 and December 31, 2019, respectively. Fair Value Measurements on a Recurring Basis The following tables set forth financial assets and liabilities that were accounted for at fair value on a recurring basis by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement: (in millions) Fair Value September 30, 2020 Level 1 Level 2 Level 3 Total Current assets: Foreign currency exchange contracts $ — $ 0.4 $ — $ 0.4 Total current assets at fair value — 0.4 — 0.4 Total assets at fair value $ — $ 0.4 $ — $ 0.4 Current liabilities: Foreign currency exchange contracts $ — $ 0.2 $ — $ 0.2 Commodity contracts — 0.1 — 0.1 Total current liabilities at fair value — 0.3 — 0.3 Total liabilities at fair value $ — $ 0.3 $ — $ 0.3 (in millions) Fair Value December 31, 2019 Level 1 Level 2 Level 3 Total Current assets: Foreign currency exchange contracts $ — $ 1.2 $ — $ 1.2 Total current assets at fair value — 1.2 — 1.2 Total assets at fair value $ — $ 1.2 $ — $ 1.2 Current liabilities: Foreign currency exchange contracts $ — $ 1.2 $ — $ 1.2 Commodity contracts — 0.6 — 0.6 Interest rate swap contracts — 3.2 — 3.2 Total current liabilities at fair value — 5.0 — 5.0 Total liabilities at fair value $ — $ 5.0 $ — $ 5.0 Fair Value Measurements on a Nonrecurring Basis The Company's assets and liabilities that are measured at fair value on a nonrecurring basis are primarily property, plant and equipment, operating lease right-of-use assets, goodwill and other intangible assets. These fair value measurements are generally determined when there is a transaction involving those assets and liabilities, such as a purchase transaction, a business combination or an adjustment for impairment. See Note 6, "Goodwill and Other Intangible Assets — Net," for information regarding the impairment charge resulting from the fair value measurement of the Company's indefinite-lived intangible assets in the EMEA region performed on a nonrecurring basis during the nine months ended September 30, 2020. The Company has determined that the majority of the inputs used to value its EMEA region indefinite-lived intangible assets are unobservable inputs that fall within Level 3 of the fair value hierarchy and include the following for the impairment charge recorded during the nine months ended September 30, 2020: Long Term Growth Rate 2.0% Weighted Average Cost of Capital 12.0% Pre-Tax Royalty Rate 1.50% - 2.25% |
Contingencies and Significant E
Contingencies and Significant Estimates | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Significant Estimates | Contingencies and Significant Estimates Product-Related and Environmental Matters As of September 30, 2020 and December 31, 2019, the Company had reserved $40.8 million and $43.9 million, respectively, for product-related warranty claims expected to be paid. Certain of these warranty and other related claims involve matters in dispute that will ultimately be resolved by negotiations, arbitration or litigation. See Note 13, "Product Warranties," for further information. As of September 30, 2020, the Company has various product liability lawsuits pending. For products sold outside of the U.S. and Canada, the Company is insured by third-party insurance companies. For products sold in the U.S. and Canada, the Company is insured, to the extent permitted under applicable law, with self-insurance retention levels. The Company's self-insurance retention levels vary by business and fluctuate with the Company's risk management practices. Product liability reserves are included in "Accrued expenses and other liabilities" in the Consolidated Balance Sheets and totaled $1.6 million and $1.3 million as of September 30, 2020 and December 31, 2019, respectively, consisted of $1.0 million and $0.7 million, respectively, reserved for specific cases and $0.6 million reserved as of both September 30, 2020 and December 31, 2019 for claims, calculated using actuarial methods, anticipated to have occurred but are not yet reported. Based on the Company's experience in defending product liability claims, management believes the reserves are adequate for estimated case resolutions on aggregate self-insured claims and third-party insured claims. Any recoveries from insurance carriers are dependent upon the legal sufficiency of claims and solvency of insurance carriers. Such recoveries are not recorded until the associated contingencies are resolved and the recoveries are realizable. As of September 30, 2020 and December 31, 2019, the Company held reserves for environmental matters related to certain of its current and former facilities of approximately $0.8 million and $0.7 million, respectively, which are included in "Accrued expenses and other liabilities" in the Company's Consolidated Balance Sheets. At certain of the Company's other facilities, potential contaminants in the soil and groundwater have been identified. The ultimate cost of any required remediation will depend upon the results of future investigation and is not reasonably estimable. Based upon available information, the Company does not expect the ultimate costs of any required remediation at any of these facilities will have a material adverse effect on its financial condition, results of operations or cash flows individually or in the aggregate. It is reasonably possible that the estimates for product warranty, product liability and environmental remediation costs may change based upon new information that may arise or matters that are beyond the scope of the Company's historical experience. Presently, there are no reliable methods to estimate the amount of any such potential changes. Other Contingencies The Company is subject to litigation, government inquiries, audits, commercial disputes, claims and other legal proceedings arising in the ordinary course of business. From time to time, the Company may be subject to audits by tax, export, customs and other governmental authorities or incur routine and non-routine fees, expenses or penalties relating to compliance with complex laws and regulations impacting the Company's business. The Company records accruals for anticipated losses related to legal and other matters, which are both probable and reasonably estimable, as well as for related legal costs as incurred. The Company believes that it has adequately accrued for such matters as of September 30, 2020 based on the best available information. In the opinion of management, the ultimate resolution of such legal and other matters is not expected to have, individually or in the aggregate, a material adverse effect on the Company's financial condition, results of operations or cash flows. The Company has voluntarily disclosed to U.S. Customs and Border Protection ("CBP") certain errors in the declaration of imported products relating to quantity, value, classification, North American Free Trade Agreement eligibility and other matters as well as potential violations of antidumping and countervailing duties. Following such disclosures, the Company began a comprehensive review of its import practices in order to quantify the loss of revenue to CBP. In April 2020, the Company determined based on its analysis of relevant records of import activity an estimated range of potential loss for customs duties, fees and interest owed for previously imported products through March 31, 2020 to be $3.1 million to $9.0 million. No amount within the range of loss was more likely than any other and therefore, the Company recorded a charge of $3.1 million, representing the low end of the range of potential loss. Through September 30, 2020, based on ongoing analyses, the Company has determined the estimated range of potential loss for customs duties, fees and interest owed for previously imported products to be $3.6 million to $6.2 million. No amount within the range of loss is more likely than any other and, therefore, the Company recorded an additional expense of $0.3 million for the three months ended June 30, 2020 and $0.2 million for the three months ended, September 30, 2020, resulting in a total expense of $3.6 million recorded for the nine months ended September 30, 2020. The charges recorded for the potential loss for customs duties, fees and interest owed on previously imported products are included as a component of "Restructuring and other expense (recovery) " in the Consolidated Statements of Operations for the three and nine months ended September 30, 2020. The associated liability of $3.6 million, representing the low end of the range of potential loss, is included in "Accrued expenses and other liabilities" in the Consolidated Balance Sheets as of September 30, 2020. Additional interest will continue to be generated until the disclosure is perfected with CBP and estimated amounts due to CBP have been remitted. The Company's analysis is ongoing and the Company cannot predict with any certainty the outcome or timing of CBP's review of the Company's analysis. |
Product Warranties
Product Warranties | 9 Months Ended |
Sep. 30, 2020 | |
Guarantees and Product Warranties [Abstract] | |
Product Warranties | Product Warranties In the normal course of business, the Company provides its customers with product warranties covering workmanship, and in some cases materials, on products manufactured by the Company. Such product warranties generally provide that products will be free from defects for periods ranging from 12 to 60 months, with certain equipment having longer-term warranties. If a product fails to comply with the Company's warranty, the Company may be obligated, at its expense, to correct any defect by repairing or replacing such defective products. The Company accrues an estimate of costs that may be incurred under the product warranty at the time the product revenue is recognized. These costs include estimates of labor and materials, as necessary, associated with repair or replacement of the products. The primary factors which impact the warranty liability include the number of units shipped and historical and anticipated warranty claims. As these factors are impacted by actual experience and future expectations, the Company assesses the adequacy of its recorded warranty liability on an ongoing basis and adjusts the liability as determined necessary. The total product warranty liability activity for the nine months ended September 30, 2020 is as follows: (in millions) Balance as of December 31, 2019 (1) $ 43.9 Additions for issuance of warranties 21.3 Settlements (in cash or in kind) (24.3) Currency translation impact (0.1) Balance as of September 30, 2020 (1) $ 40.8 (1) Long-term product warranty liabilities are included in "Other long-term liabilities" and totaled $9.5 million and $10.6 million as of September 30, 2020 and December 31, 2019, respectively. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company sponsors and maintains defined benefit retirement plans ("Pension Plans") and postretirement health and other plans ("Postretirement Health and Other Plans") (collectively "Defined Benefit Plans") for certain retired and resigned employees. Benefits under the employee retirement plans are primarily based on years of service and compensation during the years immediately preceding retirement. The current plans are based largely upon benefit plans maintained prior to the spin-off from the Company's former parent and are generally closed to new participants. The components of the periodic benefit costs for the Defined Benefit Plans are as follows: (in millions) Three Months Ended September 30, 2020 2019 Pension Plans Postretirement Pension Plans Postretirement Service cost - benefits earned during the period $ 0.1 $ — $ 0.1 $ — Interest cost of projected benefit obligations 1.0 — 1.3 0.1 Expected return on assets (1.1) — (1.2) — Amortization of actuarial net loss 0.6 0.1 0.6 — Net periodic benefit cost $ 0.6 $ 0.1 $ 0.8 $ 0.1 (in millions) Nine Months Ended September 30, 2020 2019 Pension Plans Postretirement Pension Plans Postretirement Service cost - benefits earned during the period $ 0.1 $ — $ 0.1 $ — Interest cost of projected benefit obligations 2.9 0.1 3.9 0.2 Expected return on assets (3.1) — (3.6) (0.1) Amortization of prior service cost — (0.1) — — Amortization of actuarial net loss 1.8 0.5 1.9 0.2 Settlement loss recognized — — 1.2 — Net periodic benefit cost $ 1.7 $ 0.5 $ 3.5 $ 0.3 The components of periodic benefit costs are included in "Other (income) expense — net" in the Consolidated Statements of Operations. |
Business Transformation Program
Business Transformation Program and Restructuring | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Business Transformation Program and Restructuring | Business Transformation Program and Restructuring Business Transformation Program During the first quarter of 2019, the Company initiated a comprehensive operational review to validate its long-term growth and margin targets and to refine its execution plans, which culminated in launching the Business Transformation Program ("Transformation Program") in May 2019. The Transformation Program is structured in multiple phases and is focused on specific areas of opportunity including strategic sourcing, manufacturing facility workflow redesign, distribution and administrative process efficiencies and optimizing the Company's global brand platforms. The Company currently expects the Transformation Program to extend through 2021, however, the business disruption resulting from the global COVID-19 pandemic and the uncertainty around the timing and extent of its impacts may extend the timing and alter the execution costs and related savings the Company expects from this program. For the three and nine months ended September 30, 2020 and 2019, the Transformation Program costs consist primarily of fees for consulting services. The classification of the Company's Transformation Program expenses are as follows: (in millions) Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Transformation Program expense: Cost of sales $ 0.4 $ 1.1 $ 1.5 $ 1.3 Selling, general and administrative expenses 6.3 11.2 19.4 24.5 Total $ 6.7 $ 12.3 $ 20.9 $ 25.8 Restructuring The Company will take actions to improve operating efficiencies, typically in connection with recognizing cost synergies and rationalizing the cost structure of the Company, including actions associated with the Transformation Program. These actions generally include facility rationalization, headcount reductions and organizational integration activities resulting from discrete restructuring events, which are supported by approved plans for workforce reductions. The Company's restructuring activity and balance of the restructuring liability is as follows: (in millions) 2020 Plans 2019 and Previous Plans Total Workforce reductions Workforce reductions Other Pension withdrawal obligation Restructuring liability as of December 31, 2019 $ — $ 5.0 $ — $ 9.9 $ 14.9 Restructuring activities 3.9 1.4 1.0 — 6.3 Cash payments (3.5) (4.4) — (0.9) (8.8) Non-cash adjustments (1) (0.1) — (1.0) — (1.1) Restructuring liability as of September 30, 2020 $ 0.3 $ 2.0 $ — $ 9.0 $ 11.3 (1) Non-cash adjustments represent stock-based compensation resulting from the accelerated vesting of certain stock awards and accelerated depreciation recorded during the period. As of September 30, 2020 and December 31, 2019, the current portion of the restructuring liability was $3.7 million and $6.3 million, respectively, and was included in "Accrued expenses and other liabilities" in the Consolidated Balance Sheets. As of September 30, 2020 and December 31, 2019, the long-term portion of the restructuring liability was $7.6 million and $8.6 million, respectively, and was included in "Other long-term liabilities" in the Consolidated Balance Sheets. The long-term portion of the restructuring liability is a pension withdrawal obligation incurred in connection with the reorganization and plant restructuring of one of the Company's former operating entities and is expected to be satisfied in April of 2026 when the pension obligation is scheduled to have been satisfied. The Company's restructuring expense (recovery) by segment is as follows: (in millions) Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Americas $ 0.7 $ — $ 2.5 $ 2.4 EMEA (0.2) (0.1) 0.3 0.2 APAC 1.1 — 2.1 0.1 Corporate 0.1 (0.1) 1.4 3.1 Total restructuring activities $ 1.7 $ (0.2) $ 6.3 $ 5.8 The Company's restructuring expense (recovery) is reported in the Consolidated Statements of Operations as follows: (in millions) Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Cost of sales $ 0.4 $ — $ 0.4 $ 0.4 Restructuring and other expense (recovery) 1.3 (0.2) 5.9 5.4 Total restructuring activities $ 1.7 $ (0.2) $ 6.3 $ 5.8 Beginning in the first quarter of 2020, the Company continued taking restructuring actions intended to reduce operating expenses as a result of the improved efficiencies gained from the execution of the Transformation Program. During the three and nine months ended September 30, 2020, the Company recognized $0.8 million and $3.9 million, respectively, of severance and related costs resulting from workforce reductions in the Americas region and Corporate as well as limited management restructurings. For the nine months ended September 30, 2020, these severance and related costs, consisting of $2.5 million in the Americas region and $1.4 million in the Corporate division, are included in "Restructuring and other expense (recovery) " in the Company's Consolidated Statements of Operations. The Company may take future restructuring actions as the efficiencies from the Transformation Program are realized, as part of its continued effort to review operating costs and streamline future staffing requirements. The Company also recognized costs in connection with restructuring actions initiated during the fourth quarter of 2019 in the EMEA and APAC regions. These costs include $1.4 million of severance and related costs included in "Restructuring and other expense (recovery) " f or the nine months ended September 30, 2020. The Company also recognized $0.4 million of inventory write-down included in "Cost of sales" for both the three and nine months ended September 30, 2020 and $0.5 million and $0.6 million of accelerated depreciation included in "Restructuring and other expense (recovery) " for the three and nine months ended September 30, 2020, respectively. The estimated remaining $0.3 million of restructuring costs related to these actions are expected to be recognized throughout the remainder of the year ending December 31, 2020 as continuing service requirements are met and final determinations are made for future usage of impacted inventory and equipment. During the nine months ended September 30, 2019, the Company recognized $5.4 million of severance and related costs resulting from a global workforce reduction and limited executive management and restructuring actions initiated during the first quarter of 2019. The severance and related costs are included in "Restructuring and other expense (recovery) " in the Company's Consolidated Statements of Operations during the respective periods incurred. During the second quarter of 2019, the Company completed the closure and plant consolidation of a small manufacturing facility in Baltimore, Maryland and recognized total costs of $0.6 million, consisting of $0.2 million of inventory write-down and $0.2 million of accelerated depreciation included in "Cost of sales" and $0.2 million of severance and related costs, included in "Restructuring and other expense (recovery) " in the Company's Consolidated Statements of Operations for the year ended December 31, 2019. As the Company completes payments on each of its approved plans, the remaining restructuring liability is adjusted for the actual amounts incurred. No material adjustments for prior period restructuring liabilities were incurred during either of the three or nine months ended September 30, 2020 and 2019, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Comprehensive loss includes foreign currency translation adjustments, changes in the fair value of certain financial derivative instruments that quality for hedge accounting and actuarial gains and losses arising from the Company's employee pension and postretirement benefit obligations. The components of the Company's AOCI are as follows: (in millions) September 30, December 31, 2020 2019 Accumulated other comprehensive loss: Foreign currency translation, net of income tax benefit of $1.4 million and $1.6 million, respectively $ (2.6) $ (4.3) Derivative instrument fair market value, net of income tax expense of $1.0 million and $0.8 million, respectively (0.9) (1.6) Employee pension and postretirement benefit adjustments, net of income tax benefit of $6.0 million and $6.5 million, respectively (33.4) (35.6) Total accumulated other comprehensive loss $ (36.9) $ (41.5) The summary of changes in AOCI for the three and nine months ended September 30, 2020 and 2019 are as follows: (in millions) Foreign Currency Translation (1) Gains and Losses on Cash Flow Hedges Pension & Postretirement Total Balance as of December 31, 2019 $ (4.3) $ (1.6) $ (35.6) $ (41.5) Other comprehensive (loss) income before reclassifications (27.5) (1.1) 1.4 (27.2) Reclassifications — 0.6 0.7 1.3 Tax effect (0.7) 0.1 (0.1) (0.7) Net current period other comprehensive (loss) income (28.2) (0.4) 2.0 (26.6) Balance as of March 31, 2020 $ (32.5) $ (2.0) $ (33.6) $ (68.1) Other comprehensive income before reclassifications 17.6 0.2 0.2 18.0 Reclassifications — 0.6 0.8 1.4 Tax effect 0.5 (0.2) (0.2) 0.1 Net current period other comprehensive income 18.1 0.6 0.8 19.5 Balance as of June 30, 2020 $ (14.4) $ (1.4) $ (32.8) $ (48.6) Other comprehensive income (loss) before reclassifications 11.8 0.4 (1.1) 11.1 Reclassifications — 0.2 0.7 0.9 Tax effect — (0.1) (0.2) (0.3) Net current period other comprehensive income (loss) 11.8 0.5 (0.6) 11.7 Balance as of September 30, 2020 $ (2.6) $ (0.9) $ (33.4) $ (36.9) (in millions) Foreign Currency Translation (1) Gains and Losses on Cash Flow Hedges Pension & Postretirement Total Balance as of December 31, 2018 $ (6.5) $ 0.8 $ (35.9) $ (41.6) Other comprehensive income (loss) before reclassifications 0.3 (0.5) (2.9) (3.1) Reclassifications — (0.7) 1.8 1.1 Tax effect (0.3) 0.2 (0.1) (0.2) Net current period other comprehensive loss — (1.0) (1.2) (2.2) Balance as of March 31, 2019 $ (6.5) $ (0.2) $ (37.1) $ (43.8) Other comprehensive income (loss) before reclassifications 7.4 (1.5) 0.4 6.3 Reclassifications — (0.3) 0.9 0.6 Tax effect 0.1 0.5 0.1 0.7 Net current period other comprehensive income (loss) 7.5 (1.3) 1.4 7.6 Balance as of June 30, 2019 $ 1.0 $ (1.5) $ (35.7) $ (36.2) Other comprehensive (loss) income before reclassifications (8.2) (0.9) 0.9 (8.2) Reclassifications — (0.1) 0.6 0.5 Tax effect (0.6) 0.3 0.1 (0.2) Net current period other comprehensive (loss) income (8.8) (0.7) 1.6 (7.9) Balance as of September 30, 2019 $ (7.8) $ (2.2) $ (34.1) $ (44.1) (1) Income taxes are not provided for foreign currency translation relating to indefinite investments in foreign subsidiaries, although the income tax effects within cumulative translation does include the impact of the net investment hedge transaction. Reclassification adjustments are made to avoid including items in both comprehensive income (loss) and net earnings (loss). Reclassifications from AOCI, net of tax, to income were as follows: (in millions) Three Months Ended September 30, Location 2020 2019 (Losses) gains on cash flow hedges: Foreign currency exchange contracts $ (0.1) $ (0.1) Cost of sales Commodity contracts (0.1) (0.4) Cost of sales Interest expense — 0.6 Interest expense (Losses) gains on cash flow hedges, before tax (0.2) 0.1 Tax effect — 0.2 Income taxes (Losses) gains on cash flow hedges, net of tax $ (0.2) $ 0.3 Amortization of pension and postretirement items: Actuarial losses $ (0.7) $ (0.6) Other (income) expense — net Amortization of pension and postretirement items, before tax (0.7) (0.6) Tax effect 0.2 (0.2) Income taxes Amortization of pension and postretirement items, net of tax $ (0.5) $ (0.8) Total reclassifications, net of tax $ (0.7) $ (0.5) (in millions) Nine Months Ended September 30, Recognized Location 2020 2019 (Losses) gains on cash flow hedges: Foreign currency exchange contracts $ (0.5) $ (0.7) Cost of sales Commodity contracts (0.9) (0.7) Cost of sales Interest expense — 2.5 Interest expense (Losses) gains on cash flow hedges, before tax (1.4) 1.1 Tax effect 0.3 0.5 Income taxes (Losses) gains on cash flow hedges, net of tax $ (1.1) $ 1.6 Amortization of pension and postretirement items: Prior service cost $ 0.1 $ — Other (income) expense — net Actuarial losses (2.3) (2.1) Other (income) expense — net Pension settlement — (1.2) Other (income) expense — net Amortization of pension and postretirement items, before tax (2.2) (3.3) Tax effect 0.5 (0.1) Income taxes Amortization of pension and postretirement items, net of tax $ (1.7) $ (3.4) Total reclassifications, net of tax $ (2.8) $ (1.8) |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share The Company presents earnings or (loss) per share on a basic and diluted basis. Basic earnings or (loss) per share is computed by dividing net earnings or (loss) by the weighted average number of common shares outstanding during the reported period. Diluted earnings per share includes the dilutive effect of common stock equivalents, consisting of stock options, restricted stock units and performance share units, using the treasury stock method. Performance share units, which are considered contingently issuable, are considered dilutive when the related performance criteria has been met. As the Company reported a net loss for the nine months ended September 30, 2020, basic loss per share is the same as diluted loss per share as the inclusion of potential shares of common stock would be antidilutive. As the Company reported net earnings for the three months ended September 30, 2020 and for both the three and nine months ended September 30, 2019, basic and diluted earnings per share are calculated as outlined above. The following table summarizes the total number of shares of common stock issuable pursuant to the Company's outstanding stock-based compensation awards. As a result of the Company's net loss for the nine months ended September 30, 2020, all of the potentially issuable common stock was excluded from the diluted per share calculation because the effect of including these potential shares was antidilutive, even though the exercise price could be less than the average market price of the common shares. As of September 30, 2020, potentially issuable shares of common stock consisted of the following: Potential shares of common stock: Stock options 2,148,864 Unvested restricted stock units 788,584 Unvested performance share units (1) 648,590 Total potential shares of common stock 3,586,038 (1) The number of performance share units that vest is determined for each grant based on the achievement of certain Company performance criteria over the 3-year period, as set forth in each respective award agreement, and may range from zero to 200% of the target shares granted. The unvested performance share units are presented at 100% achievement of the performance target for determination of potential shares of common stock. The components of weighted average basic and diluted shares outstanding are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Weighted average shares outstanding — Basic 141,512,207 141,072,179 141,481,963 140,893,966 Effect of dilutive securities: Stock options — 152,419 — 209,264 Unvested restricted stock units 48,540 195,813 — 255,646 Unvested performance share units — 112,379 — 96,617 Effect of dilutive securities 48,540 460,611 — 561,527 Weighted average shares outstanding — Diluted 141,560,747 141,532,790 141,481,963 141,455,493 For the three months ended September 30, 2020, there were 2.5 million securities excluded from the computation of earnings per share because the effect of including such securities would have been antidilutive. For the three and nine months ended September 30, 2019, there were 1.2 million and 1.4 million securities, respectively, excluded from the computation of earnings per share because the effect of including such securities would have been antidilutive. In addition, certain performance share units whose conditions were not met at the end of the respective reporting periods have also been excluded from the computation of earnings per share. |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The Company identifies its geographic business segments using the "management approach," which designates the internal organization used by management for making operating decisions and assessing performance as the source for determining the Company's geographic business segments. Management organizes and manages the business based on three geographic business segments: the Americas, EMEA and APAC. The accounting policies of the Company's geographic business segments are the same as those described in Note 2, "Basis of Presentation and Summary of Significant Accounting Policies." The Company evaluates segment performance based on an "Adjusted Operating EBITDA" metric. Adjusted Operating EBITDA, a non-GAAP financial measure, is defined as net earnings before interest expense, income taxes, other income or expense, depreciation and amortization expense plus certain other items such as loss from impairment of assets, gain or loss from disposal of assets, restructuring activities, loss on modification or extinguishment of debt, acquisition-related transaction and integration costs, Transformation Program expense and certain other items. In addition, certain corporate-level expenses and eliminations are not allocated to the segments. These unallocated expenses include corporate overhead, stock-based compensation expense and certain other non-operating expenses. The Company's presentation of Adjusted Operating EBITDA may not be comparable to similar measures used by other companies. During the first quarter of 2020, the Company revised the allocation of certain of its functional expenses between the corporate-level and the geographic business segments. Management believes the revised allocation methodology better aligns the operating results of the geographic business segments with how management assesses performance and makes operating decisions. The prior periods segment results and related disclosures have been recast to conform to the current period presentation. These changes did not impact the Company's previously reported consolidated financial results. The following table presents financial information relating to the Company's geographic business segments, reconciled to "Net sales" and "Earnings (loss) before income taxes" included in the Company's Consolidated Statements of Operations presented in accordance with U.S. GAAP as follows: (in millions, except percentage data) Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net sales: Americas $ 221.8 $ 318.2 $ 630.9 $ 929.2 EMEA 73.9 95.8 209.5 301.3 APAC 48.0 64.4 141.5 179.3 Elimination of intersegment sales (45.2) (67.9) (148.5) (197.7) Total net sales $ 298.5 $ 410.5 $ 833.4 $ 1,212.1 Segment Adjusted Operating EBITDA: Americas $ 34.8 $ 67.0 $ 105.8 $ 184.2 EMEA 10.5 18.6 29.6 55.1 APAC 8.4 11.3 22.3 26.5 Total Segment Adjusted Operating EBITDA 53.7 96.9 157.7 265.8 Corporate and unallocated expenses (8.1) (14.8) (46.8) (50.8) Amortization expense (10.2) (9.4) (30.2) (28.8) Depreciation expense (5.1) (5.3) (15.5) (16.2) Transaction costs (1) (0.1) (0.3) (0.2) (0.9) Other items (2) (0.2) — (3.6) (0.8) Transformation Program expense (3) (6.7) (12.3) (20.9) (25.8) Restructuring activities (4) (1.7) 0.2 (6.3) (5.8) Loss from impairment and disposal of assets — net (0.4) (0.2) (11.7) (0.2) Earnings from operations 21.2 54.8 22.5 136.5 Interest expense (18.1) (22.4) (58.5) (70.9) Other income (expense) — net 0.6 (2.9) (0.8) (11.5) Earnings (loss) before income taxes $ 3.7 $ 29.5 $ (36.8) $ 54.1 (1) Transaction costs are associated with acquisition and integrated-related activities. Transaction costs recorded in "Cost of Sales" include $0.2 million related to inventory fair value purchase accounting adjustments for the nine months ended September 30, 2019. Professional services and other direct acquisition and integration costs recorded in "Selling, general and administrative expenses" were $0.1 million and $0.2 million for the three and nine months ended September 30, 2020, respectively, and $0.3 million and $0.7 million for the three and nine months ended September 30, 2019, respectively. (2) Other items are costs which are not representative of the Company's operational performance. For the three and nine months ended September 30, 2020, other items represent the changes in the loss contingency estimate of amounts due for customs duties, fees and interest on previously imported products, which are included in "Restructuring and other expenses." Refer to Note 12, "Contingencies and Significant Estimates" for discussion of the impact to the Consolidated Statements of Operations. For the nine months ended September 30, 2019, the amount represents other professional fees which are included in "Selling, general and administrative expenses." (3) Transformation Program expense includes consulting and other costs associated with executing the Company's Transformation Program initiatives. Refer to Note 15, "Business Transformation Program and Restructuring" for discussion of the impact to the Consolidated Statements of Operations. (4) Restructuring activities includes costs associated with actions to improve operating efficiencies and rationalization of the Company's cost structure. Refer to Note 15, "Business Transformation Program and Restructuring" for discussion of the impact to the Consolidated Statements of Operations. Adjusted Operating EBITDA % by segment (5) : Americas 15.7 % 21.1 % 16.8 % 19.8 % EMEA 14.2 % 19.4 % 14.1 % 18.3 % APAC 17.5 % 17.5 % 15.8 % 14.8 % (5) Adjusted Operating EBITDA % is calculated by dividing Adjusted Operating EBITDA by net sales for each respective segment. (in millions) Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Third-party net sales by geographic area (6) : United States $ 190.0 $ 263.0 $ 530.0 $ 767.1 Other Americas 14.6 25.7 44.1 72.4 EMEA 55.8 73.2 159.7 238.1 APAC 38.1 48.6 99.6 134.5 Total net sales by geographic area $ 298.5 $ 410.5 $ 833.4 $ 1,212.1 (6) Third-party net sales in the section above are attributed to geographic regions based on location of customer. Net sales by product class and geographic business segment are as follows: (in millions) Three Months Ended September 30, 2020 Commercial Foodservice Equipment Aftermarket Parts and Support Total Americas $ 171.2 $ 31.5 $ 202.7 EMEA 47.1 10.9 58.0 APAC 31.5 6.3 37.8 Total net sales $ 249.8 $ 48.7 $ 298.5 (in millions) Three Months Ended September 30, 2019 Commercial Foodservice Equipment Aftermarket Parts and Support Total Americas $ 237.4 $ 47.4 $ 284.8 EMEA 62.9 11.1 74.0 APAC 41.5 10.2 51.7 Total net sales $ 341.8 $ 68.7 $ 410.5 (in millions) Nine Months Ended September 30, 2020 Commercial Foodservice Equipment Aftermarket Parts and Support Total Americas $ 480.8 $ 84.0 $ 564.8 EMEA 131.4 32.2 163.6 APAC 86.9 18.1 105.0 Total net sales $ 699.1 $ 134.3 $ 833.4 (in millions) Nine Months Ended September 30, 2019 Commercial Foodservice Equipment Aftermarket Parts and Support Total Americas $ 699.2 $ 129.0 $ 828.2 EMEA 205.9 36.3 242.2 APAC 118.0 23.7 141.7 Total net sales $ 1,023.1 $ 189.0 $ 1,212.1 Total assets by geographic segment are as follows: (in millions) September 30, December 31, 2020 2019 Americas $ 1,498.5 $ 1,528.0 EMEA 336.0 349.8 APAC 202.0 211.8 Corporate 114.3 75.7 Total assets $ 2,150.8 $ 2,165.3 |
Subsidiary Guarantors and Senio
Subsidiary Guarantors and Senior Notes | 9 Months Ended |
Sep. 30, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Subsidiary Guarantors and Senior Notes | Subsidiary Guarantors and Senior Notes The following tables present consolidating financial information for (a) Welbilt ("Parent"); (b) the guarantors of the Senior Notes, which include substantially all of the domestic, 100% owned subsidiaries of Welbilt ("Guarantor Subsidiaries"); and (c) the wholly-owned foreign subsidiaries of Welbilt, which do not guarantee the Senior Notes ("Non-Guarantor Subsidiaries"). The information includes elimination entries necessary to consolidate the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries. Investments in subsidiaries are accounted for using the equity method of accounting. The principal elimination entries eliminate investments in subsidiaries, equity and intercompany balances and transactions. Separate financial statements of the Guarantor Subsidiaries are not presented because as guarantors, these subsidiaries are fully and unconditionally, jointly and severally liable under the guarantees, except for normal and customary release provisions. As disclosed in Note 18, "Business Segments," the Company revised the allocation of certain of its functional expenses between the corporate-level and the geographic business segments during the first quarter of 2020. The impacts of the revised allocation predominantly impact the Parent and Guarantor Subsidiaries financial information reflected in the tables below. The prior period has been recast to conform to the current period presentation. These changes did not impact the Company's previously reported consolidated financial results. WELBILT, INC. Consolidating Statement of Operations (Unaudited) (in millions) Nine Months Ended September 30, 2020 Parent Guarantor Non- Consolidating Adjustments Consolidated Net sales $ — $ 581.8 $ 506.9 $ (255.3) $ 833.4 Cost of sales — 448.7 351.5 (255.3) 544.9 Gross profit — 133.1 155.4 — 288.5 Selling, general and administrative expenses 45.1 84.0 86.5 — 215.6 Amortization expense — 21.3 7.9 — 29.2 Restructuring and other expenses 1.4 5.5 2.6 — 9.5 Loss from impairment and disposal of assets — net 0.1 0.5 11.1 — 11.7 (Loss) earnings from operations (46.6) 21.8 47.3 — 22.5 Interest expense 57.2 0.6 0.7 — 58.5 Other (income) expense — net (10.0) (17.4) 28.2 — 0.8 Equity in earnings of subsidiaries 26.5 8.2 — (34.7) — (Loss) earnings before income taxes (67.3) 46.8 18.4 (34.7) (36.8) Income taxes (39.7) 20.3 10.2 — (9.2) Net (loss) earnings $ (27.6) $ 26.5 $ 8.2 $ (34.7) $ (27.6) Total other comprehensive income, net of tax 4.6 5.5 4.6 (10.1) 4.6 Comprehensive (loss) income $ (23.0) $ 32.0 $ 12.8 $ (44.8) $ (23.0) WELBILT, INC. Consolidating Statement of Operations (Unaudited) (in millions) Nine Months Ended September 30, 2019 Parent Guarantor Non- Consolidating Adjustments Consolidated Net sales $ — $ 850.4 $ 714.8 $ (353.1) $ 1,212.1 Cost of sales 2.7 639.1 489.7 (353.1) 778.4 Gross profit (2.7) 211.3 225.1 — 433.7 Selling, general and administrative expenses 67.7 103.4 91.7 — 262.8 Amortization expense — 21.4 7.4 — 28.8 Restructuring and other expenses 2.8 1.6 1.0 — 5.4 (Gain) loss from disposal of assets — net — (0.1) 0.3 — 0.2 (Loss) earnings from operations (73.2) 85.0 124.7 — 136.5 Interest expense 67.0 0.7 3.2 — 70.9 Other (income) expense — net (13.5) (15.5) 40.5 — 11.5 Equity in earnings of subsidiaries 130.7 57.0 — (187.7) — Earnings before income taxes 4.0 156.8 81.0 (187.7) 54.1 Income taxes (33.5) 26.1 24.0 — 16.6 Net earnings $ 37.5 $ 130.7 $ 57.0 $ (187.7) $ 37.5 Total other comprehensive loss, net of tax (2.5) (31.2) (28.9) 60.1 (2.5) Comprehensive income $ 35.0 $ 99.5 $ 28.1 $ (127.6) $ 35.0 WELBILT, INC. Consolidating Balance Sheet (Unaudited) (in millions) September 30, 2020 Parent Guarantor Non- Consolidating Adjustments Consolidated Assets Current assets: Cash and cash equivalents $ 17.8 $ — $ 106.0 $ (0.9) $ 122.9 Restricted cash — — 0.2 — 0.2 Accounts receivable — net 1.8 72.4 87.6 — 161.8 Inventories — net — 97.8 94.6 — 192.4 Prepaids and other current assets 45.4 1.4 21.1 — 67.9 Total current assets 65.0 171.6 309.5 (0.9) 545.2 Property, plant and equipment — net 14.1 71.2 41.4 — 126.7 Operating lease right-of-use assets 2.3 4.4 35.8 — 42.5 Goodwill — 832.4 104.4 — 936.8 Other intangible assets — net 0.2 322.5 149.1 — 471.8 Intercompany long-term notes receivable — 10.1 9.9 (20.0) — Due from affiliates — 3,478.2 — (3,478.2) — Investment in subsidiaries 4,427.4 — — (4,427.4) — Other non-current assets 6.4 4.6 16.8 — 27.8 Total assets $ 4,515.4 $ 4,895.0 $ 666.9 $ (7,926.5) $ 2,150.8 Liabilities and equity Current liabilities: Trade accounts payable $ 0.2 $ 55.8 $ 47.3 $ (0.9) $ 102.4 Accrued expenses and other liabilities 23.0 67.9 60.6 — 151.5 Current portion of long-term debt and finance leases 2.5 0.3 0.6 — 3.4 Product warranties — 20.3 11.0 — 31.3 Total current liabilities 25.7 144.3 119.5 (0.9) 288.6 Long-term debt and finance leases 1,430.4 0.4 13.4 — 1,444.2 Deferred income taxes 51.2 — 38.5 — 89.7 Pension and postretirement health liabilities 14.7 9.5 3.0 — 27.2 Intercompany long-term notes payable 15.7 — 4.3 (20.0) — Due to affiliates 2,730.5 — 747.6 (3,478.1) — Investment in subsidiaries — 292.7 — (292.7) — Operating lease liabilities 2.1 2.6 27.7 — 32.4 Other long-term liabilities 12.2 18.1 5.6 (0.2) 35.7 Total non-current liabilities 4,256.8 323.3 840.1 (3,791.0) 1,629.2 Total equity (deficit): Total equity (deficit) 232.9 4,427.4 (292.7) (4,134.6) 233.0 Total liabilities and equity $ 4,515.4 $ 4,895.0 $ 666.9 $ (7,926.5) $ 2,150.8 WELBILT, INC. Consolidating Balance Sheet (Audited) (in millions) December 31, 2019 Parent Guarantor Non- Consolidating Adjustments Consolidated Assets Current assets: Cash and cash equivalents $ 10.7 $ 0.7 $ 119.3 $ — $ 130.7 Accounts receivable — net 0.1 82.5 101.0 — 183.6 Intercompany trade receivable — 5.9 — (5.9) — Inventories — net — 100.2 86.2 — 186.4 Prepaids and other current assets 6.7 6.8 14.7 — 28.2 Total current assets 17.5 196.1 321.2 (5.9) 528.9 Property, plant and equipment — net 17.0 66.4 44.1 — 127.5 Operating lease right-of-use assets — 3.6 36.3 — 39.9 Goodwill — 832.4 100.7 — 933.1 Other intangible assets — net — 344.2 163.5 — 507.7 Intercompany long-term notes receivable — 10.1 9.9 (20.0) — Due from affiliates — 3,437.2 — (3,437.2) — Investment in subsidiaries 4,400.9 — — (4,400.9) — Other non-current assets 7.6 4.2 16.4 — 28.2 Total assets $ 4,443.0 $ 4,894.2 $ 692.1 $ (7,864.0) $ 2,165.3 Liabilities and equity Current liabilities: Trade accounts payable $ 0.2 $ 49.0 $ 55.2 $ — $ 104.4 Accrued expenses and other liabilities 35.3 87.7 69.4 — 192.4 Current portion of long-term debt and finance leases — 0.7 0.5 — 1.2 Intercompany trade payable 5.9 — — (5.9) — Product warranties — 21.9 11.4 — 33.3 Total current liabilities 41.4 159.3 136.5 (5.9) 331.3 Long-term debt and finance leases 1,370.0 0.6 32.5 — 1,403.1 Deferred income taxes 45.0 — 36.9 — 81.9 Pension and postretirement health liabilities 15.5 10.2 7.1 — 32.8 Intercompany long-term notes payable 15.7 — 4.3 (20.0) — Due to affiliates 2,695.1 — 742.1 (3,437.2) — Investment in subsidiaries — 300.9 — (300.9) — Operating lease liabilities — 1.8 27.3 — 29.1 Other long-term liabilities 7.4 20.5 6.3 (0.1) 34.1 Total non-current liabilities 4,148.7 334.0 856.5 (3,758.2) 1,581.0 Total equity (deficit): Total equity (deficit) 252.9 4,400.9 (300.9) (4,099.9) 253.0 Total liabilities and equity $ 4,443.0 $ 4,894.2 $ 692.1 $ (7,864.0) $ 2,165.3 WELBILT, INC. Consolidating Statement of Cash Flows (Unaudited) (in millions) Nine Months Ended September 30, 2020 Parent Guarantor Non- Consolidating Adjustments Consolidated Cash flows from operating activities Net cash (used in) provided by operating activities $ (81.0) $ 50.4 $ 4.6 $ (0.9) $ (26.9) Cash flows from investing activities Capital expenditures (1.7) (9.3) (4.9) — (15.9) Acquisition of intangible assets — (0.2) — — (0.2) Intercompany investment — (41.0) 5.6 35.4 — Other (3.9) — — — (3.9) Net cash (used in) provided by investing activities (5.6) (50.5) 0.7 35.4 (20.0) Cash flows from financing activities Proceeds from long-term debt 172.5 — — — 172.5 Repayments on long-term debt and finance leases (112.5) (0.6) (18.1) — (131.2) Debt issuance costs (2.1) — — — (2.1) Exercises of stock options 1.1 — — — 1.1 Payments on tax withholdings for equity awards (0.7) — — — (0.7) Intercompany financing 35.4 — — (35.4) — Net cash provided by (used in) financing activities 93.7 (0.6) (18.1) (35.4) 39.6 Effect of exchange rate changes on cash — — (0.3) — (0.3) Net increase (decrease) in cash and cash equivalents and restricted cash 7.1 (0.7) (13.1) (0.9) (7.6) Balance at beginning of period 10.7 0.7 119.3 — 130.7 Balance at end of period $ 17.8 $ — $ 106.2 $ (0.9) $ 123.1 WELBILT, INC. Consolidating Statement of Cash Flows (Unaudited) (in millions) Nine Months Ended September 30, 2019 Parent Guarantor Non- Consolidating Adjustments Consolidated Cash flows from operating activities Net cash used in operating activities $ (112.9) $ (84.1) $ (122.1) $ (1.4) $ (320.5) Cash flows from investing activities Cash receipts on beneficial interest in sold receivables — 75.8 204.9 — 280.7 Capital expenditures (3.5) (10.2) (3.7) — (17.4) Proceeds from maturity of short-term investment — — 32.0 — 32.0 Intercompany investment — 19.5 (5.7) (13.8) — Other 0.9 — — — 0.9 Net cash (used in) provided by investing activities (2.6) 85.1 227.5 (13.8) 296.2 Cash flows from financing activities Proceeds from long-term debt 355.0 — — — 355.0 Repayments on long-term debt and finance leases (223.5) (0.7) (43.0) — (267.2) Repayment of short-term borrowings — — (15.0) — (15.0) Payment of contingent consideration — (0.8) — — (0.8) Exercises of stock options 3.0 — — — 3.0 Payments on tax withholdings for equity awards (2.2) — — — (2.2) Intercompany financing (13.8) — — 13.8 — Net cash provided by (used in) financing activities 118.5 (1.5) (58.0) 13.8 72.8 Effect of exchange rate changes on cash — — (3.9) — (3.9) Net increase (decrease) in cash and cash equivalents and restricted cash 3.0 (0.5) 43.5 (1.4) 44.6 Balance at beginning of period 0.2 0.5 72.5 — 73.2 Balance at end of period $ 3.2 $ — $ 116.0 $ (1.4) $ 117.8 |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The accompanying unaudited consolidated financial statements include the accounts of Welbilt and its subsidiaries and have been prepared by the Company, pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). The Company prepares its financial statements in accordance with accounting principles generally accepted in the U.S. ("U.S. GAAP"). All intercompany balances and transactions between the Company and its affiliates have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant items subject to such estimates and assumptions include inventory obsolescence costs, asset impairments, warranty costs, product liability costs, employee benefit programs, sales rebates, loss contingencies and the measurement of income tax assets and liabilities. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. On an ongoing basis, the Company evaluates these assumptions, judgments and estimates. Actual results may differ from these estimates. |
Government Assistance | Government Assistance The Company's policy for government assistance is to recognize the assistance when there is reasonable assurance that the Company has met the substantive conditions of and requirements for receiving the assistance. The government assistance is recorded as a reduction to the related expense for which the assistance relates. As a result of the COVID-19 pandemic, governments in various jurisdictions in which the Company operates have provided financial assistance designed to offset salary expenditures associated with companies maintaining their pre-COVID-19 employee headcount levels. The Company has applied and will continue to apply for such assistance programs where relevant requirements and conditions have been met. |
Recently Adopted and Not Yet Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In August 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2018-15, "Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract," which aligns 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, with amortization expense being recorded in the same income statement expense line as the hosted service costs and over the expected term of the hosting arrangement. This standard was effective for the Company on January 1, 2020 and has been adopted prospectively for applicable implementation costs incurred subsequent to the effective date. In June 2016, the FASB issued ASU 2016-13 In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework- Changes to the Disclosure Requirements for Fair Value Measurement". The amendments in this update modify the disclosure requirements for fair value measurements in Topic 820, Fair Value Measurement and were adopted by the Company as of January 1, 2020. As this amendment contemplates changes in disclosures only there was no impact on the Company's consolidated financial condition or results of operations. Refer to Note 11, "Fair Value of Financial Instruments," for the additional required disclosures. In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" ("ASU 2020-04") to provide temporary optional expedients and exceptions to U.S. GAAP guidance on contract modifications, hedge accounting and other transactions affected by the expected market transition from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates. ASU 2020-04 is effective upon issuance and the Company may elect to apply the standard through December 31, 2022. This guidance primarily impacts the interest expense under the Company's 2016 Credit Facility which utilizes LIBOR as a basis. As the Company has not executed a modification of the interest component of this financial instrument and does not have related outstanding hedges in place as of September 30, 2020, the guidance has not impacted the Company's consolidated financial statements to date. The Company will evaluate the impact of adopting this guidance at the time such transition to an alternative reference rate occurs. Recently Issued Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes" ("ASU 2019-12"), which amends, and is intended to simplify, existing guidance related to the accounting for income taxes. ASU 2019-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted. This guidance is effective for the Company beginning January 1, 2021. The Company is currently evaluating the impact this new standard will have on the Company's consolidated financial statements subsequent to January 1, 2021. Recent accounting guidance not discussed is not applicable, did not have, or is not expected to have a material impact on the Company. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Government Assistance Received | Government assistance has been reflected as a reduction to the related expense for which the assistance relates as follows: (in millions) Three Months Ended Nine Months Ended September 30, 2020 September 30, 2020 Reduction to related expense (1) : Cost of sales $ 1.9 $ 3.1 Selling, general and administrative expenses 3.2 5.4 Total $ 5.1 $ 8.5 As of September 30, 2020, $3.3 million of government assistance was included as a reduction in capitalized labor, which is a component of "Inventories — net". This portion of government assistance will be recognized as a reduction to "Cost of sales" when the associated inventory is sold. |
Inventories - Net (Tables)
Inventories - Net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | The components of "Inventories — net" are as follows: (in millions) September 30, December 31, 2020 2019 Inventories — net: Raw materials $ 90.9 $ 81.4 Work-in-process 14.3 14.2 Finished goods 91.4 95.0 Total inventories at FIFO cost 196.6 190.6 Excess of FIFO costs over LIFO value (4.2) (4.2) Total inventories — net $ 192.4 $ 186.4 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Components of Property, Plant and Equipment | The components of "Property, plant and equipment — net" are as follows: (in millions) September 30, December 31, 2020 2019 Property, plant and equipment — net: Land $ 9.6 $ 9.7 Building and improvements 99.2 93.2 Machinery, equipment and tooling 229.9 223.3 Furniture and fixtures 8.0 7.6 Computer hardware and software for internal use 67.7 66.1 Construction in progress 14.6 22.0 Total cost 429.0 421.9 Less accumulated depreciation (302.3) (294.4) Total property, plant and equipment — net $ 126.7 $ 127.5 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets - Net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the Carrying Amount of Goodwill by Geographic Segment | The changes in the carrying amount of goodwill by geographic business segment are as follows: (in millions) Americas EMEA APAC Total Gross balance as of December 31, 2019 $ 1,144.8 $ 284.1 $ 19.9 $ 1,448.8 Accumulated asset impairments (312.2) (203.5) — (515.7) Net balance as of December 31, 2019 $ 832.6 $ 80.6 $ 19.9 $ 933.1 Foreign currency impact $ — $ 3.4 $ 0.3 $ 3.7 Gross balance as of September 30, 2020 1,144.8 287.5 20.2 1,452.5 Accumulated asset impairments (312.2) (203.5) — (515.7) Net balance as of September 30, 2020 $ 832.6 $ 84.0 $ 20.2 $ 936.8 |
Changes in Gross Carrying Amount and Balances of Finite-Lived Intangible Assets | The gross carrying amounts, impairment charges and accumulated amortization of the Company's intangible assets, other than goodwill, are as follows: (in millions) September 30, 2020 December 31, 2019 Gross Impairment Charges Accumulated Net Gross Accumulated Net Customer relationships $ 475.1 $ — $ (263.9) $ 211.2 $ 472.8 $ (243.6) $ 229.2 Trademarks and trade names 219.7 (11.1) — 208.6 217.6 — 217.6 Other intangibles 169.6 — (121.2) 48.4 166.9 (109.8) 57.1 Patents 5.8 — (2.2) 3.6 5.8 (2.0) 3.8 Total $ 870.2 $ (11.1) $ (387.3) $ 471.8 $ 863.1 $ (355.4) $ 507.7 |
Changes in Gross Carrying Amount and Balances of Indefinite-Lived Intangible Assets | The gross carrying amounts, impairment charges and accumulated amortization of the Company's intangible assets, other than goodwill, are as follows: (in millions) September 30, 2020 December 31, 2019 Gross Impairment Charges Accumulated Net Gross Accumulated Net Customer relationships $ 475.1 $ — $ (263.9) $ 211.2 $ 472.8 $ (243.6) $ 229.2 Trademarks and trade names 219.7 (11.1) — 208.6 217.6 — 217.6 Other intangibles 169.6 — (121.2) 48.4 166.9 (109.8) 57.1 Patents 5.8 — (2.2) 3.6 5.8 (2.0) 3.8 Total $ 870.2 $ (11.1) $ (387.3) $ 471.8 $ 863.1 $ (355.4) $ 507.7 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Liabilities | The components of "Accrued expenses and other liabilities" are as follows: (in millions) September 30, December 31, 2020 2019 Accrued expenses and other liabilities: Accrued rebates and commissions $ 36.1 $ 56.2 Miscellaneous accrued expenses 37.1 37.8 Employee related expenses 38.8 34.7 Interest payable 5.9 15.8 Operating lease liabilities 9.6 10.0 Restructuring liabilities 3.7 6.3 Business Transformation Program related expenses 2.2 5.8 Derivative liabilities 0.3 5.0 Income and other taxes payable 7.7 11.2 Deferred revenues 2.7 3.1 Customer deposits 3.7 3.1 Pension and postretirement health liabilities 2.1 2.1 Product liabilities 1.6 1.3 Total accrued expenses and other liabilities $ 151.5 $ 192.4 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | The carrying value of the Company's outstanding debt consists of the following: (in millions, except percentage data) September 30, 2020 December 31, 2019 Carrying Value Weighted Average Interest Rate Carrying Value Weighted Average Interest Rate Long-term debt and finance leases: Revolving Credit Facility $ 182.9 4.16 % $ 141.8 5.00 % Term Loan B Facility 855.0 3.61 % 855.0 5.11 % 9.50% Senior Notes due 2024 425.0 9.73 % 425.0 9.72 % Finance leases 1.9 4.76 % 2.5 4.83 % Total debt and finance leases, including current portion 1,464.8 1,424.3 Less current portion: Term Loan B Facility (2.5) — Finance leases (0.9) (1.2) Unamortized debt issuance costs (1) (17.6) (20.5) Hedge accounting fair value adjustment (2) 0.4 0.5 Total long-term debt and finance leases $ 1,444.2 $ 1,403.1 (1) Total debt issuance costs, net of amortization as of September 30, 2020 and December 31, 2019, were $21.5 million and $23.0 million, respectively, of which $3.9 million and $2.5 million, respectively, are related to the Revolving Credit Facility (as defined below) and recorded in "Other non-current assets" in the Consolidated Balance Sheets. (2) Balance represents deferred gains from the terminations of interest rate swaps designated as fair value hedges. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Outstanding Commodity and Currency Forward Contracts | The Company's outstanding currency forward contracts entered into as hedges of forecasted transactions are as follows: Currency (in millions) Units Hedged September 30, December 31, 2020 2019 Canadian Dollar 6.6 8.0 Euro 4.1 7.6 British Pound 7.4 8.0 Mexican Peso 91.4 111.3 Singapore Dollar 2.0 2.0 The Company had the following outstanding commodity and currency forward contracts that were not designated as hedging instruments: Commodity Contracted Units Unit September 30, December 31, 2020 2019 Aluminum 133 524 MT Copper 51 269 MT Steel — 1,778 Short tons Currency (in millions) Contracted Units September 30, December 31, 2020 2019 Singapore Dollar 28.4 28.4 Euro 84.1 75.6 British Pound 6.5 20.3 Mexican Peso 13.2 11.8 Swiss Franc 7.0 7.0 Canadian Dollar 1.2 1.3 |
Schedule of Impact of Derivative Instruments on the Consolidated Statements of Comprehensive Income and the Consolidated Statements of Operations | The effects of the Company's derivative instruments on the Consolidated Statements of Comprehensive Income (Loss) and Consolidated Statements of Operations for gains or losses initially recognized in AOCI in the Consolidated Balance Sheets are as follows: Derivatives in cash flow hedging relationships Pretax gain/(loss) recognized in AOCI Pretax gain/(loss) reclassified from AOCI into income (in millions) Three Months Ended September 30, Location Three Months Ended September 30, 2020 2019 2020 2019 Foreign currency exchange contracts $ 0.4 $ (0.5) Cost of sales $ (0.1) $ (0.1) Commodity contracts — (0.5) Cost of sales (0.1) (0.4) Interest rate swap contracts — 0.1 Interest expense — 0.6 Total $ 0.4 $ (0.9) $ (0.2) $ 0.1 Derivatives in cash flow hedging relationships Pretax gain/(loss) recognized in AOCI Pretax gain/(loss) reclassified from AOCI into income (in millions) Nine Months Ended September 30, Location Nine Months Ended September 30, 2020 2019 2020 2019 Foreign currency exchange contracts $ (0.5) $ — Cost of sales $ (0.5) $ (0.7) Commodity contracts — (1.3) Cost of sales (0.9) (0.7) Interest rate swap contracts — (1.6) Interest expense — 2.5 Total $ (0.5) $ (2.9) $ (1.4) $ 1.1 The table below presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Operations: (in millions) Location and amount of gain/(loss) recognized on effect of fair value and cash flow derivative instruments Three Months Ended Three Months Ended September 30, 2020 September 30, 2019 Cost of Sales Interest Expense Cost of Sales Interest Expense Total amounts of expense line items presented in the Consolidated Statements of Operations in which effects of fair value and cash flow hedges are recorded $ 193.2 $ 18.1 $ 259.6 $ 22.4 The effects of fair value and cash flow hedging: Gain/(loss) on fair value hedging relationship: Interest rate contract: Hedged item $ — $ — $ — $ 0.1 Gain/(loss) on cash flow hedging relationships: Foreign currency exchange contracts: Amount of gain/(loss) reclassified from AOCI into income $ (0.1) $ — $ (0.1) $ — Commodity contracts: Amount of gain/(loss) reclassified from AOCI into income $ (0.1) $ — $ (0.4) $ — Interest rate contracts: Amount of gain/(loss) reclassified from AOCI into income $ — $ — $ — $ 0.6 (in millions) Location and amount of gain/(loss) recognized on effect of fair value and cash flow derivative instruments Nine Months Ended Nine Months Ended September 30, 2020 September 30, 2019 Cost of Sales Interest Expense Cost of Sales Interest Expense Total amounts of expense line items presented in the Consolidated Statements of Operations in which effects of fair value and cash flow hedges are recorded $ 544.9 $ 58.5 $ 778.4 $ 70.9 The effects of fair value and cash flow hedging: Gain/(loss) on fair value hedging relationship: Interest rate contract: Hedged Item $ — $ 0.1 $ — $ (14.2) Derivative designated as hedging instrument $ — $ — $ — $ 13.3 Gain/(loss) on cash flow hedging relationships: Foreign currency exchange contracts: Amount of gain/(loss) reclassified from AOCI into income $ (0.5) $ — $ (0.7) $ — Commodity contracts: Amount of gain/(loss) reclassified from AOCI into income $ (0.9) $ — $ (0.7) $ — Interest rate contracts: Amount of gain/(loss) reclassified from AOCI into income $ — $ — $ — $ 2.5 The location and effects of the net investment hedge on the Consolidated Statements of Comprehensive Income (Loss) and Consolidated Statements of Operations are as follows: Derivative in net investment hedging relationship Pretax gain/(loss) recognized in AOCI Gain/(loss) reclassified from AOCI into income Gain/(loss) recognized in income (amount excluded from effectiveness testing) (in millions) Three Months Ended Location Three Months Ended Location Three Months Ended September 30, September 30, September 30, 2020 2019 2020 2019 2020 2019 Interest rate swap contract $ — $ 2.7 N/A $ — $ — Other (income) expense — net $ — $ 0.4 N/A = Not applicable Derivatives in net investments hedging relationships Pretax gain/(loss) recognized in AOCI Gain/(loss) reclassified from AOCI into income Gain/(loss) recognized in income (amount excluded from effectiveness testing) (in millions) Nine Months Ended Location Nine Months Ended Location Nine Months Ended September 30, September 30, September 30, 2020 2019 2020 2019 2020 2019 Interest rate swap contract $ (0.8) $ 4.0 N/A $ — $ — Other (income) expense — net $ 0.3 $ 1.2 N/A = Not applicable The location and impact on the Consolidated Statements of Operations for gains or losses related to derivative instruments not designated as hedging instruments are as follows: Derivatives NOT designated as hedging instruments Amount of gain/(loss) recognized in income on derivative Location of gain/(loss) recognized in income on derivative (in millions) Three Months Ended September 30, 2020 2019 Foreign currency exchange contracts $ (2.1) $ 3.6 Other (income) expense — net Commodity contracts 0.1 — Other (income) expense — net Total $ (2.0) $ 3.6 Derivatives NOT designated as hedging instruments Amount of gain/(loss) recognized in income on derivative Location of gain/(loss) recognized in income on derivative (in millions) Nine Months Ended September 30, 2020 2019 Foreign currency exchange contracts $ (2.1) $ 9.3 Other (income) expense — net Commodity contracts (0.3) — Other (income) expense — net Total $ (2.4) $ 9.3 |
Schedule of the Fair Value of Outstanding Derivative Contracts Recorded as Assets in the Accompanying Consolidated Balance Sheet | The fair value of outstanding derivative contracts recorded as assets in the Consolidated Balance Sheets are as follows: (in millions) Balance Sheet Location Asset Derivatives September 30, December 31, 2020 2019 Derivatives designated as hedging instruments: Foreign currency exchange contracts Prepaids and other current assets $ 0.2 $ 0.8 Total derivatives designated as hedging instruments $ 0.2 $ 0.8 Derivatives NOT designated as hedging instruments: Foreign currency exchange contracts Prepaids and other current assets $ 0.2 $ 0.4 Total derivatives NOT designated as hedging instruments $ 0.2 $ 0.4 Total asset derivatives $ 0.4 $ 1.2 |
Schedule of the Fair Value of Outstanding Derivative Contracts Recorded as Liabilities in the Accompanying Consolidated Balance Sheet | The fair value of outstanding derivative contracts recorded as liabilities in the Consolidated Balance Sheets are as follows: (in millions) Balance Sheet Location Liability Derivatives September 30, December 31, 2020 2019 Derivatives designated as hedging instruments: Foreign currency exchange contracts Accrued expenses and other liabilities $ 0.1 $ 0.6 Interest rate swap contracts Accrued expenses and other liabilities — 3.2 Total derivatives designated as hedging instruments $ 0.1 $ 3.8 Derivatives NOT designated as hedging instruments: Foreign currency exchange contracts Accrued expenses and other liabilities $ 0.1 $ 0.6 Commodity contracts Accrued expenses and other liabilities 0.1 0.6 Total derivatives NOT designated as hedging instruments $ 0.2 $ 1.2 Total liability derivatives $ 0.3 $ 5.0 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Accounted for at Fair Value on a Recurring Basis by level within the Fair Value Hierarchy | The following tables set forth financial assets and liabilities that were accounted for at fair value on a recurring basis by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement: (in millions) Fair Value September 30, 2020 Level 1 Level 2 Level 3 Total Current assets: Foreign currency exchange contracts $ — $ 0.4 $ — $ 0.4 Total current assets at fair value — 0.4 — 0.4 Total assets at fair value $ — $ 0.4 $ — $ 0.4 Current liabilities: Foreign currency exchange contracts $ — $ 0.2 $ — $ 0.2 Commodity contracts — 0.1 — 0.1 Total current liabilities at fair value — 0.3 — 0.3 Total liabilities at fair value $ — $ 0.3 $ — $ 0.3 (in millions) Fair Value December 31, 2019 Level 1 Level 2 Level 3 Total Current assets: Foreign currency exchange contracts $ — $ 1.2 $ — $ 1.2 Total current assets at fair value — 1.2 — 1.2 Total assets at fair value $ — $ 1.2 $ — $ 1.2 Current liabilities: Foreign currency exchange contracts $ — $ 1.2 $ — $ 1.2 Commodity contracts — 0.6 — 0.6 Interest rate swap contracts — 3.2 — 3.2 Total current liabilities at fair value — 5.0 — 5.0 Total liabilities at fair value $ — $ 5.0 $ — $ 5.0 |
Fair Value Measurement Inputs and Valuation Techniques | The Company has determined that the majority of the inputs used to value its EMEA region indefinite-lived intangible assets are unobservable inputs that fall within Level 3 of the fair value hierarchy and include the following for the impairment charge recorded during the nine months ended September 30, 2020: Long Term Growth Rate 2.0% Weighted Average Cost of Capital 12.0% Pre-Tax Royalty Rate 1.50% - 2.25% |
Product Warranties (Tables)
Product Warranties (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Guarantees and Product Warranties [Abstract] | |
Schedule of the Summary of Product Warranty Activity | The total product warranty liability activity for the nine months ended September 30, 2020 is as follows: (in millions) Balance as of December 31, 2019 (1) $ 43.9 Additions for issuance of warranties 21.3 Settlements (in cash or in kind) (24.3) Currency translation impact (0.1) Balance as of September 30, 2020 (1) $ 40.8 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Period Benefit Costs | The components of the periodic benefit costs for the Defined Benefit Plans are as follows: (in millions) Three Months Ended September 30, 2020 2019 Pension Plans Postretirement Pension Plans Postretirement Service cost - benefits earned during the period $ 0.1 $ — $ 0.1 $ — Interest cost of projected benefit obligations 1.0 — 1.3 0.1 Expected return on assets (1.1) — (1.2) — Amortization of actuarial net loss 0.6 0.1 0.6 — Net periodic benefit cost $ 0.6 $ 0.1 $ 0.8 $ 0.1 (in millions) Nine Months Ended September 30, 2020 2019 Pension Plans Postretirement Pension Plans Postretirement Service cost - benefits earned during the period $ 0.1 $ — $ 0.1 $ — Interest cost of projected benefit obligations 2.9 0.1 3.9 0.2 Expected return on assets (3.1) — (3.6) (0.1) Amortization of prior service cost — (0.1) — — Amortization of actuarial net loss 1.8 0.5 1.9 0.2 Settlement loss recognized — — 1.2 — Net periodic benefit cost $ 1.7 $ 0.5 $ 3.5 $ 0.3 |
Business Transformation Progr_2
Business Transformation Program and Restructuring (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Components of Transformation Program expense | The classification of the Company's Transformation Program expenses are as follows: (in millions) Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Transformation Program expense: Cost of sales $ 0.4 $ 1.1 $ 1.5 $ 1.3 Selling, general and administrative expenses 6.3 11.2 19.4 24.5 Total $ 6.7 $ 12.3 $ 20.9 $ 25.8 |
Rollforward of all Restructuring Activities | The Company's restructuring activity and balance of the restructuring liability is as follows: (in millions) 2020 Plans 2019 and Previous Plans Total Workforce reductions Workforce reductions Other Pension withdrawal obligation Restructuring liability as of December 31, 2019 $ — $ 5.0 $ — $ 9.9 $ 14.9 Restructuring activities 3.9 1.4 1.0 — 6.3 Cash payments (3.5) (4.4) — (0.9) (8.8) Non-cash adjustments (1) (0.1) — (1.0) — (1.1) Restructuring liability as of September 30, 2020 $ 0.3 $ 2.0 $ — $ 9.0 $ 11.3 |
Restructuring Expense by Segment | The Company's restructuring expense (recovery) by segment is as follows: (in millions) Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Americas $ 0.7 $ — $ 2.5 $ 2.4 EMEA (0.2) (0.1) 0.3 0.2 APAC 1.1 — 2.1 0.1 Corporate 0.1 (0.1) 1.4 3.1 Total restructuring activities $ 1.7 $ (0.2) $ 6.3 $ 5.8 The Company's restructuring expense (recovery) is reported in the Consolidated Statements of Operations as follows: (in millions) Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Cost of sales $ 0.4 $ — $ 0.4 $ 0.4 Restructuring and other expense (recovery) 1.3 (0.2) 5.9 5.4 Total restructuring activities $ 1.7 $ (0.2) $ 6.3 $ 5.8 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Reconciliations for the Changes in Accumulated Other Comprehensive Loss | The components of the Company's AOCI are as follows: (in millions) September 30, December 31, 2020 2019 Accumulated other comprehensive loss: Foreign currency translation, net of income tax benefit of $1.4 million and $1.6 million, respectively $ (2.6) $ (4.3) Derivative instrument fair market value, net of income tax expense of $1.0 million and $0.8 million, respectively (0.9) (1.6) Employee pension and postretirement benefit adjustments, net of income tax benefit of $6.0 million and $6.5 million, respectively (33.4) (35.6) Total accumulated other comprehensive loss $ (36.9) $ (41.5) The summary of changes in AOCI for the three and nine months ended September 30, 2020 and 2019 are as follows: (in millions) Foreign Currency Translation (1) Gains and Losses on Cash Flow Hedges Pension & Postretirement Total Balance as of December 31, 2019 $ (4.3) $ (1.6) $ (35.6) $ (41.5) Other comprehensive (loss) income before reclassifications (27.5) (1.1) 1.4 (27.2) Reclassifications — 0.6 0.7 1.3 Tax effect (0.7) 0.1 (0.1) (0.7) Net current period other comprehensive (loss) income (28.2) (0.4) 2.0 (26.6) Balance as of March 31, 2020 $ (32.5) $ (2.0) $ (33.6) $ (68.1) Other comprehensive income before reclassifications 17.6 0.2 0.2 18.0 Reclassifications — 0.6 0.8 1.4 Tax effect 0.5 (0.2) (0.2) 0.1 Net current period other comprehensive income 18.1 0.6 0.8 19.5 Balance as of June 30, 2020 $ (14.4) $ (1.4) $ (32.8) $ (48.6) Other comprehensive income (loss) before reclassifications 11.8 0.4 (1.1) 11.1 Reclassifications — 0.2 0.7 0.9 Tax effect — (0.1) (0.2) (0.3) Net current period other comprehensive income (loss) 11.8 0.5 (0.6) 11.7 Balance as of September 30, 2020 $ (2.6) $ (0.9) $ (33.4) $ (36.9) (in millions) Foreign Currency Translation (1) Gains and Losses on Cash Flow Hedges Pension & Postretirement Total Balance as of December 31, 2018 $ (6.5) $ 0.8 $ (35.9) $ (41.6) Other comprehensive income (loss) before reclassifications 0.3 (0.5) (2.9) (3.1) Reclassifications — (0.7) 1.8 1.1 Tax effect (0.3) 0.2 (0.1) (0.2) Net current period other comprehensive loss — (1.0) (1.2) (2.2) Balance as of March 31, 2019 $ (6.5) $ (0.2) $ (37.1) $ (43.8) Other comprehensive income (loss) before reclassifications 7.4 (1.5) 0.4 6.3 Reclassifications — (0.3) 0.9 0.6 Tax effect 0.1 0.5 0.1 0.7 Net current period other comprehensive income (loss) 7.5 (1.3) 1.4 7.6 Balance as of June 30, 2019 $ 1.0 $ (1.5) $ (35.7) $ (36.2) Other comprehensive (loss) income before reclassifications (8.2) (0.9) 0.9 (8.2) Reclassifications — (0.1) 0.6 0.5 Tax effect (0.6) 0.3 0.1 (0.2) Net current period other comprehensive (loss) income (8.8) (0.7) 1.6 (7.9) Balance as of September 30, 2019 $ (7.8) $ (2.2) $ (34.1) $ (44.1) |
Reclassification out of Accumulated Other Comprehensive Loss | Reclassifications from AOCI, net of tax, to income were as follows: (in millions) Three Months Ended September 30, Location 2020 2019 (Losses) gains on cash flow hedges: Foreign currency exchange contracts $ (0.1) $ (0.1) Cost of sales Commodity contracts (0.1) (0.4) Cost of sales Interest expense — 0.6 Interest expense (Losses) gains on cash flow hedges, before tax (0.2) 0.1 Tax effect — 0.2 Income taxes (Losses) gains on cash flow hedges, net of tax $ (0.2) $ 0.3 Amortization of pension and postretirement items: Actuarial losses $ (0.7) $ (0.6) Other (income) expense — net Amortization of pension and postretirement items, before tax (0.7) (0.6) Tax effect 0.2 (0.2) Income taxes Amortization of pension and postretirement items, net of tax $ (0.5) $ (0.8) Total reclassifications, net of tax $ (0.7) $ (0.5) (in millions) Nine Months Ended September 30, Recognized Location 2020 2019 (Losses) gains on cash flow hedges: Foreign currency exchange contracts $ (0.5) $ (0.7) Cost of sales Commodity contracts (0.9) (0.7) Cost of sales Interest expense — 2.5 Interest expense (Losses) gains on cash flow hedges, before tax (1.4) 1.1 Tax effect 0.3 0.5 Income taxes (Losses) gains on cash flow hedges, net of tax $ (1.1) $ 1.6 Amortization of pension and postretirement items: Prior service cost $ 0.1 $ — Other (income) expense — net Actuarial losses (2.3) (2.1) Other (income) expense — net Pension settlement — (1.2) Other (income) expense — net Amortization of pension and postretirement items, before tax (2.2) (3.3) Tax effect 0.5 (0.1) Income taxes Amortization of pension and postretirement items, net of tax $ (1.7) $ (3.4) Total reclassifications, net of tax $ (2.8) $ (1.8) |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Antidilutive Potential Shares Of Common Stock | The following table summarizes the total number of shares of common stock issuable pursuant to the Company's outstanding stock-based compensation awards. As a result of the Company's net loss for the nine months ended September 30, 2020, all of the potentially issuable common stock was excluded from the diluted per share calculation because the effect of including these potential shares was antidilutive, even though the exercise price could be less than the average market price of the common shares. As of September 30, 2020, potentially issuable shares of common stock consisted of the following: Potential shares of common stock: Stock options 2,148,864 Unvested restricted stock units 788,584 Unvested performance share units (1) 648,590 Total potential shares of common stock 3,586,038 |
Components of Weighted Average Basic and Diluted Shares Outstanding | The components of weighted average basic and diluted shares outstanding are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Weighted average shares outstanding — Basic 141,512,207 141,072,179 141,481,963 140,893,966 Effect of dilutive securities: Stock options — 152,419 — 209,264 Unvested restricted stock units 48,540 195,813 — 255,646 Unvested performance share units — 112,379 — 96,617 Effect of dilutive securities 48,540 460,611 — 561,527 Weighted average shares outstanding — Diluted 141,560,747 141,532,790 141,481,963 141,455,493 |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information Relating to the Company's Reportable Segments | The following table presents financial information relating to the Company's geographic business segments, reconciled to "Net sales" and "Earnings (loss) before income taxes" included in the Company's Consolidated Statements of Operations presented in accordance with U.S. GAAP as follows: (in millions, except percentage data) Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net sales: Americas $ 221.8 $ 318.2 $ 630.9 $ 929.2 EMEA 73.9 95.8 209.5 301.3 APAC 48.0 64.4 141.5 179.3 Elimination of intersegment sales (45.2) (67.9) (148.5) (197.7) Total net sales $ 298.5 $ 410.5 $ 833.4 $ 1,212.1 Segment Adjusted Operating EBITDA: Americas $ 34.8 $ 67.0 $ 105.8 $ 184.2 EMEA 10.5 18.6 29.6 55.1 APAC 8.4 11.3 22.3 26.5 Total Segment Adjusted Operating EBITDA 53.7 96.9 157.7 265.8 Corporate and unallocated expenses (8.1) (14.8) (46.8) (50.8) Amortization expense (10.2) (9.4) (30.2) (28.8) Depreciation expense (5.1) (5.3) (15.5) (16.2) Transaction costs (1) (0.1) (0.3) (0.2) (0.9) Other items (2) (0.2) — (3.6) (0.8) Transformation Program expense (3) (6.7) (12.3) (20.9) (25.8) Restructuring activities (4) (1.7) 0.2 (6.3) (5.8) Loss from impairment and disposal of assets — net (0.4) (0.2) (11.7) (0.2) Earnings from operations 21.2 54.8 22.5 136.5 Interest expense (18.1) (22.4) (58.5) (70.9) Other income (expense) — net 0.6 (2.9) (0.8) (11.5) Earnings (loss) before income taxes $ 3.7 $ 29.5 $ (36.8) $ 54.1 (1) Transaction costs are associated with acquisition and integrated-related activities. Transaction costs recorded in "Cost of Sales" include $0.2 million related to inventory fair value purchase accounting adjustments for the nine months ended September 30, 2019. Professional services and other direct acquisition and integration costs recorded in "Selling, general and administrative expenses" were $0.1 million and $0.2 million for the three and nine months ended September 30, 2020, respectively, and $0.3 million and $0.7 million for the three and nine months ended September 30, 2019, respectively. (2) Other items are costs which are not representative of the Company's operational performance. For the three and nine months ended September 30, 2020, other items represent the changes in the loss contingency estimate of amounts due for customs duties, fees and interest on previously imported products, which are included in "Restructuring and other expenses." Refer to Note 12, "Contingencies and Significant Estimates" for discussion of the impact to the Consolidated Statements of Operations. For the nine months ended September 30, 2019, the amount represents other professional fees which are included in "Selling, general and administrative expenses." (3) Transformation Program expense includes consulting and other costs associated with executing the Company's Transformation Program initiatives. Refer to Note 15, "Business Transformation Program and Restructuring" for discussion of the impact to the Consolidated Statements of Operations. (4) Restructuring activities includes costs associated with actions to improve operating efficiencies and rationalization of the Company's cost structure. Refer to Note 15, "Business Transformation Program and Restructuring" for discussion of the impact to the Consolidated Statements of Operations. Adjusted Operating EBITDA % by segment (5) : Americas 15.7 % 21.1 % 16.8 % 19.8 % EMEA 14.2 % 19.4 % 14.1 % 18.3 % APAC 17.5 % 17.5 % 15.8 % 14.8 % (5) Adjusted Operating EBITDA % is calculated by dividing Adjusted Operating EBITDA by net sales for each respective segment. (in millions) Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Third-party net sales by geographic area (6) : United States $ 190.0 $ 263.0 $ 530.0 $ 767.1 Other Americas 14.6 25.7 44.1 72.4 EMEA 55.8 73.2 159.7 238.1 APAC 38.1 48.6 99.6 134.5 Total net sales by geographic area $ 298.5 $ 410.5 $ 833.4 $ 1,212.1 (6) Third-party net sales in the section above are attributed to geographic regions based on location of customer. Net sales by product class and geographic business segment are as follows: (in millions) Three Months Ended September 30, 2020 Commercial Foodservice Equipment Aftermarket Parts and Support Total Americas $ 171.2 $ 31.5 $ 202.7 EMEA 47.1 10.9 58.0 APAC 31.5 6.3 37.8 Total net sales $ 249.8 $ 48.7 $ 298.5 (in millions) Three Months Ended September 30, 2019 Commercial Foodservice Equipment Aftermarket Parts and Support Total Americas $ 237.4 $ 47.4 $ 284.8 EMEA 62.9 11.1 74.0 APAC 41.5 10.2 51.7 Total net sales $ 341.8 $ 68.7 $ 410.5 (in millions) Nine Months Ended September 30, 2020 Commercial Foodservice Equipment Aftermarket Parts and Support Total Americas $ 480.8 $ 84.0 $ 564.8 EMEA 131.4 32.2 163.6 APAC 86.9 18.1 105.0 Total net sales $ 699.1 $ 134.3 $ 833.4 (in millions) Nine Months Ended September 30, 2019 Commercial Foodservice Equipment Aftermarket Parts and Support Total Americas $ 699.2 $ 129.0 $ 828.2 EMEA 205.9 36.3 242.2 APAC 118.0 23.7 141.7 Total net sales $ 1,023.1 $ 189.0 $ 1,212.1 Total assets by geographic segment are as follows: (in millions) September 30, December 31, 2020 2019 Americas $ 1,498.5 $ 1,528.0 EMEA 336.0 349.8 APAC 202.0 211.8 Corporate 114.3 75.7 Total assets $ 2,150.8 $ 2,165.3 |
Subsidiary Guarantors and Sen_2
Subsidiary Guarantors and Senior Notes (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Consolidating Statement of Operations | WELBILT, INC. Consolidating Statement of Operations (Unaudited) (in millions) Three Months Ended September 30, 2020 Parent Guarantor Non- Consolidating Adjustments Consolidated Net sales $ — $ 201.2 $ 169.1 $ (71.8) $ 298.5 Cost of sales 0.2 155.9 108.9 (71.8) 193.2 Gross profit (0.2) 45.3 60.2 — 105.3 Selling, general and administrative expenses 15.5 28.9 27.9 — 72.3 Amortization expense — 7.2 2.7 — 9.9 Restructuring and other expenses 0.1 0.7 0.7 — 1.5 Loss (gain) from impairment and disposal of assets — net 0.1 0.5 (0.2) — 0.4 (Loss) earnings from operations (15.9) 8.0 29.1 — 21.2 Interest expense 17.7 0.2 0.2 — 18.1 Other (income) expense — net (1.8) (5.9) 7.1 — (0.6) Equity in earnings of subsidiaries 19.6 11.5 — (31.1) — (Loss) earnings before income taxes (12.2) 25.2 21.8 (31.1) 3.7 Income taxes (17.1) 5.6 10.3 — (1.2) Net earnings $ 4.9 $ 19.6 $ 11.5 $ (31.1) $ 4.9 Total other comprehensive income, net of tax 11.8 11.6 11.0 (22.7) 11.7 Comprehensive income $ 16.7 $ 31.2 $ 22.5 $ (53.8) $ 16.6 WELBILT, INC. Consolidating Statement of Operations (Unaudited) Three Months Ended September 30, 2019 (in millions) Parent Guarantor Non- Consolidating Adjustments Consolidated Net sales $ — $ 297.2 $ 243.8 $ (130.5) $ 410.5 Cost of sales 0.9 221.6 167.6 (130.5) 259.6 Gross profit (0.9) 75.6 76.2 — 150.9 Selling, general and administrative expenses 24.5 33.8 28.4 — 86.7 Amortization expense — 7.2 2.2 — 9.4 Restructuring recovery — (0.1) (0.1) — (0.2) (Gain) loss from disposal of assets — net — (0.1) 0.3 — 0.2 (Loss) earnings from operations (25.4) 34.8 45.4 — 54.8 Interest expense 21.7 0.2 0.5 — 22.4 Other (income) expense — net (3.1) (8.7) 14.7 — 2.9 Equity in earnings of subsidiaries 49.3 19.4 — (68.7) — Earnings before income taxes 5.3 62.7 30.2 (68.7) 29.5 Income taxes (14.8) 13.4 10.8 — 9.4 Net earnings $ 20.1 $ 49.3 $ 19.4 $ (68.7) $ 20.1 Total other comprehensive loss, net of tax (7.9) (9.8) (9.7) 19.5 (7.9) Comprehensive income $ 12.2 $ 39.5 $ 9.7 $ (49.2) $ 12.2 WELBILT, INC. Consolidating Statement of Operations (Unaudited) (in millions) Nine Months Ended September 30, 2020 Parent Guarantor Non- Consolidating Adjustments Consolidated Net sales $ — $ 581.8 $ 506.9 $ (255.3) $ 833.4 Cost of sales — 448.7 351.5 (255.3) 544.9 Gross profit — 133.1 155.4 — 288.5 Selling, general and administrative expenses 45.1 84.0 86.5 — 215.6 Amortization expense — 21.3 7.9 — 29.2 Restructuring and other expenses 1.4 5.5 2.6 — 9.5 Loss from impairment and disposal of assets — net 0.1 0.5 11.1 — 11.7 (Loss) earnings from operations (46.6) 21.8 47.3 — 22.5 Interest expense 57.2 0.6 0.7 — 58.5 Other (income) expense — net (10.0) (17.4) 28.2 — 0.8 Equity in earnings of subsidiaries 26.5 8.2 — (34.7) — (Loss) earnings before income taxes (67.3) 46.8 18.4 (34.7) (36.8) Income taxes (39.7) 20.3 10.2 — (9.2) Net (loss) earnings $ (27.6) $ 26.5 $ 8.2 $ (34.7) $ (27.6) Total other comprehensive income, net of tax 4.6 5.5 4.6 (10.1) 4.6 Comprehensive (loss) income $ (23.0) $ 32.0 $ 12.8 $ (44.8) $ (23.0) WELBILT, INC. Consolidating Statement of Operations (Unaudited) (in millions) Nine Months Ended September 30, 2019 Parent Guarantor Non- Consolidating Adjustments Consolidated Net sales $ — $ 850.4 $ 714.8 $ (353.1) $ 1,212.1 Cost of sales 2.7 639.1 489.7 (353.1) 778.4 Gross profit (2.7) 211.3 225.1 — 433.7 Selling, general and administrative expenses 67.7 103.4 91.7 — 262.8 Amortization expense — 21.4 7.4 — 28.8 Restructuring and other expenses 2.8 1.6 1.0 — 5.4 (Gain) loss from disposal of assets — net — (0.1) 0.3 — 0.2 (Loss) earnings from operations (73.2) 85.0 124.7 — 136.5 Interest expense 67.0 0.7 3.2 — 70.9 Other (income) expense — net (13.5) (15.5) 40.5 — 11.5 Equity in earnings of subsidiaries 130.7 57.0 — (187.7) — Earnings before income taxes 4.0 156.8 81.0 (187.7) 54.1 Income taxes (33.5) 26.1 24.0 — 16.6 Net earnings $ 37.5 $ 130.7 $ 57.0 $ (187.7) $ 37.5 Total other comprehensive loss, net of tax (2.5) (31.2) (28.9) 60.1 (2.5) Comprehensive income $ 35.0 $ 99.5 $ 28.1 $ (127.6) $ 35.0 |
Consolidating Balance Sheet | WELBILT, INC. Consolidating Balance Sheet (Unaudited) (in millions) September 30, 2020 Parent Guarantor Non- Consolidating Adjustments Consolidated Assets Current assets: Cash and cash equivalents $ 17.8 $ — $ 106.0 $ (0.9) $ 122.9 Restricted cash — — 0.2 — 0.2 Accounts receivable — net 1.8 72.4 87.6 — 161.8 Inventories — net — 97.8 94.6 — 192.4 Prepaids and other current assets 45.4 1.4 21.1 — 67.9 Total current assets 65.0 171.6 309.5 (0.9) 545.2 Property, plant and equipment — net 14.1 71.2 41.4 — 126.7 Operating lease right-of-use assets 2.3 4.4 35.8 — 42.5 Goodwill — 832.4 104.4 — 936.8 Other intangible assets — net 0.2 322.5 149.1 — 471.8 Intercompany long-term notes receivable — 10.1 9.9 (20.0) — Due from affiliates — 3,478.2 — (3,478.2) — Investment in subsidiaries 4,427.4 — — (4,427.4) — Other non-current assets 6.4 4.6 16.8 — 27.8 Total assets $ 4,515.4 $ 4,895.0 $ 666.9 $ (7,926.5) $ 2,150.8 Liabilities and equity Current liabilities: Trade accounts payable $ 0.2 $ 55.8 $ 47.3 $ (0.9) $ 102.4 Accrued expenses and other liabilities 23.0 67.9 60.6 — 151.5 Current portion of long-term debt and finance leases 2.5 0.3 0.6 — 3.4 Product warranties — 20.3 11.0 — 31.3 Total current liabilities 25.7 144.3 119.5 (0.9) 288.6 Long-term debt and finance leases 1,430.4 0.4 13.4 — 1,444.2 Deferred income taxes 51.2 — 38.5 — 89.7 Pension and postretirement health liabilities 14.7 9.5 3.0 — 27.2 Intercompany long-term notes payable 15.7 — 4.3 (20.0) — Due to affiliates 2,730.5 — 747.6 (3,478.1) — Investment in subsidiaries — 292.7 — (292.7) — Operating lease liabilities 2.1 2.6 27.7 — 32.4 Other long-term liabilities 12.2 18.1 5.6 (0.2) 35.7 Total non-current liabilities 4,256.8 323.3 840.1 (3,791.0) 1,629.2 Total equity (deficit): Total equity (deficit) 232.9 4,427.4 (292.7) (4,134.6) 233.0 Total liabilities and equity $ 4,515.4 $ 4,895.0 $ 666.9 $ (7,926.5) $ 2,150.8 WELBILT, INC. Consolidating Balance Sheet (Audited) (in millions) December 31, 2019 Parent Guarantor Non- Consolidating Adjustments Consolidated Assets Current assets: Cash and cash equivalents $ 10.7 $ 0.7 $ 119.3 $ — $ 130.7 Accounts receivable — net 0.1 82.5 101.0 — 183.6 Intercompany trade receivable — 5.9 — (5.9) — Inventories — net — 100.2 86.2 — 186.4 Prepaids and other current assets 6.7 6.8 14.7 — 28.2 Total current assets 17.5 196.1 321.2 (5.9) 528.9 Property, plant and equipment — net 17.0 66.4 44.1 — 127.5 Operating lease right-of-use assets — 3.6 36.3 — 39.9 Goodwill — 832.4 100.7 — 933.1 Other intangible assets — net — 344.2 163.5 — 507.7 Intercompany long-term notes receivable — 10.1 9.9 (20.0) — Due from affiliates — 3,437.2 — (3,437.2) — Investment in subsidiaries 4,400.9 — — (4,400.9) — Other non-current assets 7.6 4.2 16.4 — 28.2 Total assets $ 4,443.0 $ 4,894.2 $ 692.1 $ (7,864.0) $ 2,165.3 Liabilities and equity Current liabilities: Trade accounts payable $ 0.2 $ 49.0 $ 55.2 $ — $ 104.4 Accrued expenses and other liabilities 35.3 87.7 69.4 — 192.4 Current portion of long-term debt and finance leases — 0.7 0.5 — 1.2 Intercompany trade payable 5.9 — — (5.9) — Product warranties — 21.9 11.4 — 33.3 Total current liabilities 41.4 159.3 136.5 (5.9) 331.3 Long-term debt and finance leases 1,370.0 0.6 32.5 — 1,403.1 Deferred income taxes 45.0 — 36.9 — 81.9 Pension and postretirement health liabilities 15.5 10.2 7.1 — 32.8 Intercompany long-term notes payable 15.7 — 4.3 (20.0) — Due to affiliates 2,695.1 — 742.1 (3,437.2) — Investment in subsidiaries — 300.9 — (300.9) — Operating lease liabilities — 1.8 27.3 — 29.1 Other long-term liabilities 7.4 20.5 6.3 (0.1) 34.1 Total non-current liabilities 4,148.7 334.0 856.5 (3,758.2) 1,581.0 Total equity (deficit): Total equity (deficit) 252.9 4,400.9 (300.9) (4,099.9) 253.0 Total liabilities and equity $ 4,443.0 $ 4,894.2 $ 692.1 $ (7,864.0) $ 2,165.3 |
Consolidating Statement of Cash Flows | WELBILT, INC. Consolidating Statement of Cash Flows (Unaudited) (in millions) Nine Months Ended September 30, 2020 Parent Guarantor Non- Consolidating Adjustments Consolidated Cash flows from operating activities Net cash (used in) provided by operating activities $ (81.0) $ 50.4 $ 4.6 $ (0.9) $ (26.9) Cash flows from investing activities Capital expenditures (1.7) (9.3) (4.9) — (15.9) Acquisition of intangible assets — (0.2) — — (0.2) Intercompany investment — (41.0) 5.6 35.4 — Other (3.9) — — — (3.9) Net cash (used in) provided by investing activities (5.6) (50.5) 0.7 35.4 (20.0) Cash flows from financing activities Proceeds from long-term debt 172.5 — — — 172.5 Repayments on long-term debt and finance leases (112.5) (0.6) (18.1) — (131.2) Debt issuance costs (2.1) — — — (2.1) Exercises of stock options 1.1 — — — 1.1 Payments on tax withholdings for equity awards (0.7) — — — (0.7) Intercompany financing 35.4 — — (35.4) — Net cash provided by (used in) financing activities 93.7 (0.6) (18.1) (35.4) 39.6 Effect of exchange rate changes on cash — — (0.3) — (0.3) Net increase (decrease) in cash and cash equivalents and restricted cash 7.1 (0.7) (13.1) (0.9) (7.6) Balance at beginning of period 10.7 0.7 119.3 — 130.7 Balance at end of period $ 17.8 $ — $ 106.2 $ (0.9) $ 123.1 WELBILT, INC. Consolidating Statement of Cash Flows (Unaudited) (in millions) Nine Months Ended September 30, 2019 Parent Guarantor Non- Consolidating Adjustments Consolidated Cash flows from operating activities Net cash used in operating activities $ (112.9) $ (84.1) $ (122.1) $ (1.4) $ (320.5) Cash flows from investing activities Cash receipts on beneficial interest in sold receivables — 75.8 204.9 — 280.7 Capital expenditures (3.5) (10.2) (3.7) — (17.4) Proceeds from maturity of short-term investment — — 32.0 — 32.0 Intercompany investment — 19.5 (5.7) (13.8) — Other 0.9 — — — 0.9 Net cash (used in) provided by investing activities (2.6) 85.1 227.5 (13.8) 296.2 Cash flows from financing activities Proceeds from long-term debt 355.0 — — — 355.0 Repayments on long-term debt and finance leases (223.5) (0.7) (43.0) — (267.2) Repayment of short-term borrowings — — (15.0) — (15.0) Payment of contingent consideration — (0.8) — — (0.8) Exercises of stock options 3.0 — — — 3.0 Payments on tax withholdings for equity awards (2.2) — — — (2.2) Intercompany financing (13.8) — — 13.8 — Net cash provided by (used in) financing activities 118.5 (1.5) (58.0) 13.8 72.8 Effect of exchange rate changes on cash — — (3.9) — (3.9) Net increase (decrease) in cash and cash equivalents and restricted cash 3.0 (0.5) 43.5 (1.4) 44.6 Balance at beginning of period 0.2 0.5 72.5 — 73.2 Balance at end of period $ 3.2 $ — $ 116.0 $ (1.4) $ 117.8 |
Business and Organization (Deta
Business and Organization (Details) distributor in Thousands | 9 Months Ended |
Sep. 30, 2020distributorsegmentmanufacturing_facility | |
Accounting Policies [Abstract] | |
Number of manufacturing facilities operating globally | manufacturing_facility | 19 |
Number of distributors, dealers, buying groups and manufacturers' representatives (over) | distributor | 5 |
Number of business segments | segment | 3 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Government assistance in the form of cash, cost abatements and retention credits | $ 6 | $ 11.8 | ||||||||
Receivable related to government assistance | 2.5 | 2.5 | ||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | |||||||||
Retained earnings | $ 233 | $ 233 | $ 253 | $ 215.1 | $ 213 | $ 230.7 | $ 216.7 | $ 185.3 | $ 186.4 | |
Cumulative effect of accounting standards adoption | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Retained earnings | $ (0.4) | $ 0.2 | [1] | |||||||
[1] | Effective January 1, 2019, the Company adopted Accounting Standards Update ("ASU") 2016-02, "Leases (Topic 842)" with additional updates subsequently issued (collectively, "ASU 2016-02"). The cumulative effect of the change made to the Consolidated Statement of Equity as of January 1, 2019 for the adoption of ASU 2016-02 is the result of recognizing the remaining deferred gain associated with a previous sale-leaseback transaction. |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Government Assistance (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Unusual or Infrequent Item, or Both [Line Items] | ||
Government assistance received in the form of cash, cost abatements and retention credits | $ 5.1 | $ 8.5 |
Inventories | ||
Unusual or Infrequent Item, or Both [Line Items] | ||
Government assistance received in the form of cash, cost abatements and retention credits | 3.3 | |
Cost of sales | ||
Unusual or Infrequent Item, or Both [Line Items] | ||
Government assistance received in the form of cash, cost abatements and retention credits | 1.9 | 3.1 |
Selling, general and administrative expenses | ||
Unusual or Infrequent Item, or Both [Line Items] | ||
Government assistance received in the form of cash, cost abatements and retention credits | $ 3.2 | $ 5.4 |
Accounts Receivable Securitiz_2
Accounts Receivable Securitization (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2019 | Sep. 30, 2019 | Mar. 12, 2019 | |
Transfers and Servicing [Abstract] | |||
Capacity of securitization program | $ 110,000,000 | ||
Accounts receivable securitization repurchase | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Termination of accounts receivable securitization program, reacquired amount | $ 156,900,000 | ||
Cash receipts on the reacquired receivables | $ 149,700,000 |
Inventories - Net (Details)
Inventories - Net (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Inventories — net: | ||
Raw materials | $ 90.9 | $ 81.4 |
Work-in-process | 14.3 | 14.2 |
Finished goods | 91.4 | 95 |
Total inventories at FIFO cost | 196.6 | 190.6 |
Excess of FIFO costs over LIFO value | (4.2) | (4.2) |
Inventories — net | $ 192.4 | $ 186.4 |
Property, Plant and Equipment_3
Property, Plant and Equipment - Net (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment | ||
Total cost | $ 429 | $ 421.9 |
Less accumulated depreciation | (302.3) | (294.4) |
Total property, plant and equipment — net | 126.7 | 127.5 |
Land | ||
Property, Plant and Equipment | ||
Total cost | 9.6 | 9.7 |
Building and improvements | ||
Property, Plant and Equipment | ||
Total cost | 99.2 | 93.2 |
Machinery, equipment and tooling | ||
Property, Plant and Equipment | ||
Total cost | 229.9 | 223.3 |
Furniture and fixtures | ||
Property, Plant and Equipment | ||
Total cost | 8 | 7.6 |
Computer hardware and software for internal use | ||
Property, Plant and Equipment | ||
Total cost | 67.7 | 66.1 |
Construction in progress | ||
Property, Plant and Equipment | ||
Total cost | $ 14.6 | $ 22 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Net - Narrative (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2020 | Mar. 31, 2020 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Impairment Charges, indefinite-lived | $ 0 | |
EMEA | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Impairment Charges, indefinite-lived | $ 11,100,000 | |
APAC | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Impairment Charges, indefinite-lived | $ 0 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Net - Changes in the Carrying Amount of Goodwill by Geographic Segment (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Goodwill [Roll Forward] | |
Beginning gross balance | $ 1,448.8 |
Beginning accumulated asset impairments | (515.7) |
Beginning net balance | 933.1 |
Foreign currency impact | 3.7 |
Ending gross balance | 1,452.5 |
Ending accumulated asset impairments | (515.7) |
Ending net balance | 936.8 |
Americas | |
Goodwill [Roll Forward] | |
Beginning gross balance | 1,144.8 |
Beginning accumulated asset impairments | (312.2) |
Beginning net balance | 832.6 |
Foreign currency impact | 0 |
Ending gross balance | 1,144.8 |
Ending accumulated asset impairments | (312.2) |
Ending net balance | 832.6 |
EMEA | |
Goodwill [Roll Forward] | |
Beginning gross balance | 284.1 |
Beginning accumulated asset impairments | (203.5) |
Beginning net balance | 80.6 |
Foreign currency impact | 3.4 |
Ending gross balance | 287.5 |
Ending accumulated asset impairments | (203.5) |
Ending net balance | 84 |
APAC | |
Goodwill [Roll Forward] | |
Beginning gross balance | 19.9 |
Beginning accumulated asset impairments | 0 |
Beginning net balance | 19.9 |
Foreign currency impact | 0.3 |
Ending gross balance | 20.2 |
Ending accumulated asset impairments | 0 |
Ending net balance | $ 20.2 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Net - Gross Carrying Amount and Accumulated Amortization of Finite-Lived Intangible Assets other than Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Intangible asset balances by major asset class | |||
Impairment Charges, indefinite-lived | $ 0 | ||
Accumulated Amortization Amount, finite-lived | $ (387.3) | $ (355.4) | |
Gross Carrying Amount, Total | 870.2 | 863.1 | |
Impairment Charges | (11.1) | ||
Net Book Value, Total | 471.8 | 507.7 | |
Customer relationships | |||
Intangible asset balances by major asset class | |||
Gross Carrying Amount, finite-lived | 475.1 | 472.8 | |
Impairment Charges, finite-lived | 0 | ||
Accumulated Amortization Amount, finite-lived | (263.9) | (243.6) | |
Net Book Value, finite-lived | 211.2 | 229.2 | |
Other intangibles | |||
Intangible asset balances by major asset class | |||
Gross Carrying Amount, finite-lived | 169.6 | 166.9 | |
Impairment Charges, finite-lived | 0 | ||
Accumulated Amortization Amount, finite-lived | (121.2) | (109.8) | |
Net Book Value, finite-lived | 48.4 | 57.1 | |
Patents | |||
Intangible asset balances by major asset class | |||
Gross Carrying Amount, finite-lived | 5.8 | 5.8 | |
Impairment Charges, finite-lived | 0 | ||
Accumulated Amortization Amount, finite-lived | (2.2) | (2) | |
Net Book Value, finite-lived | 3.6 | 3.8 | |
Trademarks and trade names | |||
Intangible asset balances by major asset class | |||
Gross Carrying Amount, indefinite-lived | 219.7 | ||
Impairment Charges, indefinite-lived | (11.1) | ||
Net Book Value, indefinite-lived | $ 208.6 | $ 217.6 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Accrued rebates and commissions | $ 36.1 | $ 56.2 |
Miscellaneous accrued expenses | 37.1 | 37.8 |
Employee related expenses | 38.8 | 34.7 |
Interest payable | 5.9 | 15.8 |
Operating lease liabilities | 9.6 | 10 |
Restructuring liabilities | 3.7 | 6.3 |
Business Transformation Program related expenses | 2.2 | 5.8 |
Derivative liabilities | 0.3 | 5 |
Income and other taxes payable | 7.7 | 11.2 |
Deferred revenues | 2.7 | 3.1 |
Customer deposits | 3.7 | 3.1 |
Pension and postretirement health liabilities | 2.1 | 2.1 |
Product liabilities | 1.6 | 1.3 |
Total accrued expenses and other liabilities | $ 151.5 | $ 192.4 |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)segment | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Income Tax Disclosure [Abstract] | |||||
Income tax provision | $ (1.2) | $ 9.4 | $ (9.2) | $ 16.6 | |
Effective tax rate | (32.40%) | 31.90% | 25.00% | 30.70% | |
Discrete tax expense (benefit) | $ 1.2 | $ (5) | $ (0.7) | ||
U.S. federal statutory rate | 21.00% | 21.00% | |||
Number of reportable segments | segment | 3 | ||||
Unrecognized tax benefits | 7.1 | $ 7.1 | $ 4.2 | ||
Prepaids and other current assets | |||||
Income Tax Contingency [Line Items] | |||||
Income taxes receivables | 49.1 | 49.1 | $ 11.3 | ||
Minimum | |||||
Income Tax Contingency [Line Items] | |||||
Unrecognized tax benefits reasonably possible to impact effective income tax rate | 0.6 | 0.6 | |||
Maximum | |||||
Income Tax Contingency [Line Items] | |||||
Unrecognized tax benefits reasonably possible to impact effective income tax rate | $ 1 | $ 1 |
Debt - Schedule of Outstanding
Debt - Schedule of Outstanding Debt (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Carrying Value, finance leases | $ 1.9 | $ 2.5 |
Total debt and finance leases, including current portion | 1,464.8 | 1,424.3 |
Less: Term Loan B Facility | (2.5) | 0 |
Less: Current portion of finance leases | (0.9) | (1.2) |
Less: Unamortized debt issuance costs | (17.6) | (20.5) |
Less: Hedge accounting fair value adjustment | 0.4 | 0.5 |
Total long-term debt and finance leases | $ 1,444.2 | $ 1,403.1 |
Weighted Average Interest Rate, finance leases | 4.76% | 4.83% |
Debt issuance costs, net of amortization | $ 21.5 | $ 23 |
Debt issuance costs, revolving credit facility | 3.9 | 2.5 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Carrying Value, long-term debt | $ 182.9 | $ 141.8 |
Weighted Average Interest Rate, long-term debt | 4.16% | 5.00% |
Term Loan B Facility | ||
Debt Instrument [Line Items] | ||
Carrying Value, long-term debt | $ 855 | $ 855 |
Weighted Average Interest Rate, long-term debt | 3.61% | 5.11% |
9.50% Senior Notes due 2024 | ||
Debt Instrument [Line Items] | ||
Carrying Value, long-term debt | $ 425 | $ 425 |
Stated interest rate | 9.50% | |
Weighted Average Interest Rate, long-term debt | 9.73% | 9.72% |
Debt - Narrative (Details)
Debt - Narrative (Details) | Apr. 17, 2020USD ($) | Jun. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Mar. 31, 2016USD ($) |
2016 Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Balance outstanding | $ 182,900,000 | $ 141,800,000 | |||||
2016 Credit Facility | Line of credit | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility capacity | $ 1,300,000,000 | ||||||
2016 Credit Facility | Line of credit | Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Spread on variable interest rate | 1.00% | ||||||
2016 Credit Facility | Line of credit | Term Loan B Facility | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility capacity | 900,000,000 | ||||||
2016 Credit Facility | Line of credit | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility capacity | $ 400,000,000 | ||||||
Maximum pro forma senior secured leverage ratio | 3.75 | ||||||
Available borrowings | 210,000,000 | ||||||
2016 Credit Facility | Line of credit | Revolving Credit Facility | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Spread on variable interest rate | 2.50% | 2.25% | |||||
2016 Credit Facility | Line of credit | Revolving Credit Facility | LIBOR | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Spread on variable interest rate | 1.50% | ||||||
2016 Credit Facility | Line of credit | Revolving Credit Facility | LIBOR | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Spread on variable interest rate | 2.50% | ||||||
2016 Credit Facility | Line of credit | Revolving Credit Facility | Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Spread on variable interest rate | 1.50% | 1.25% | |||||
2016 Credit Facility | Line of credit | Letters of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility capacity | $ 30,000,000 | ||||||
Balance outstanding | 7,100,000 | ||||||
2016 Credit Facility | Line of credit | Incremental Revolving or Term Loan Facilities | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility capacity | $ 275,000,000 | ||||||
2016 Credit Facility | Term loan | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Spread on variable interest rate | 2.50% | ||||||
Other Letters of Credit | Other outstanding letters of credit or guarantees of payment | Letters of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Balance outstanding | $ 1,700,000 | ||||||
Amended 2016 Credit Agreement | Line of credit | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Term to comply with financial covenants | 90 days | ||||||
Cash balance limit | $ (100,000,000) | ||||||
Term to use cash in excess of draw restriction | 10 days | ||||||
Carve-out restriction for general investments | $ 25,000,000 | ||||||
Quarterly fee | 0.50% | ||||||
Debt issuance cost | $ 2,100,000 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) € in Millions, $ in Millions | 1 Months Ended | 9 Months Ended | |||||
Mar. 31, 2020USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2017USD ($)swap | Sep. 30, 2020USD ($) | Mar. 31, 2019USD ($) | Oct. 31, 2017USD ($) | Mar. 31, 2017EUR (€)swap | |
Derivative [Line Items] | |||||||
Cash flow hedge, gain (loss) to be reclassified in next twelve months | $ 0.1 | ||||||
Minimum length of time hedged in cash flow hedge | 15 months | ||||||
Maximum length of time hedged in cash flow hedge | 36 months | ||||||
Number of derivative instruments (swap) | swap | 2 | 2 | |||||
Designated as Hedging Instrument | Interest rate swap contracts | |||||||
Derivative [Line Items] | |||||||
Derivative notional amount (USD and EUR) | $ 600 | ||||||
Designated as Hedging Instrument | Cross-currency interest rate swap contract | |||||||
Derivative [Line Items] | |||||||
Derivative notional amount (USD and EUR) | € | € 50 | ||||||
Term of derivative contract | 3 years | ||||||
Payments for derivative instrument | $ 4.1 | ||||||
Interest Rate Swap, March 2020 | Designated as Hedging Instrument | Interest rate swap contracts | |||||||
Derivative [Line Items] | |||||||
Derivative notional amount (USD and EUR) | $ 425 | ||||||
Proceeds from terminated derivative | $ 14 | ||||||
Interest Rate Swap, March 2019 | Designated as Hedging Instrument | Interest rate swap contracts | |||||||
Derivative [Line Items] | |||||||
Derivative notional amount (USD and EUR) | $ 425 | $ 175 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Currency Forward Contracts (Details) - Foreign currency exchange contracts € in Millions, £ in Millions, SFr in Millions, $ in Millions, $ in Millions, $ in Millions | Sep. 30, 2020CAD ($) | Sep. 30, 2020EUR (€) | Sep. 30, 2020GBP (£) | Sep. 30, 2020MXN ($) | Sep. 30, 2020SGD ($) | Sep. 30, 2020CHF (SFr) | Dec. 31, 2019CAD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2019GBP (£) | Dec. 31, 2019MXN ($) | Dec. 31, 2019SGD ($) | Dec. 31, 2019CHF (SFr) |
Designated as Hedging Instrument | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative notional amount | $ 6.6 | € 4.1 | £ 7.4 | $ 91.4 | $ 2 | $ 8 | € 7.6 | £ 8 | $ 111.3 | $ 2 | ||
Other Operating Income (Expense) | Not Designated as Hedging Instrument | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative notional amount | $ 1.2 | € 84.1 | £ 6.5 | $ 13.2 | $ 28.4 | SFr 7 | $ 1.3 | € 75.6 | £ 20.3 | $ 11.8 | $ 28.4 | SFr 7 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Schedule of Impact of Derivative Instruments on the Consolidated Statements of Comprehensive Income and Consolidated Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative [Line Items] | ||||
Pretax gain/(loss) recognized in AOCI | $ 0.4 | $ (0.9) | $ (0.5) | $ (2.9) |
Pretax gain/(loss) reclassified from AOCI into income | (0.2) | 0.1 | (1.4) | 1.1 |
Foreign currency exchange contracts | ||||
Derivative [Line Items] | ||||
Pretax gain/(loss) recognized in AOCI | 0.4 | (0.5) | (0.5) | 0 |
Commodity contracts | ||||
Derivative [Line Items] | ||||
Pretax gain/(loss) recognized in AOCI | 0 | (0.5) | 0 | (1.3) |
Interest rate swap contracts | ||||
Derivative [Line Items] | ||||
Pretax gain/(loss) recognized in AOCI | 0 | 0.1 | 0 | (1.6) |
Cost of sales | Foreign currency exchange contracts | ||||
Derivative [Line Items] | ||||
Pretax gain/(loss) reclassified from AOCI into income | (0.1) | (0.1) | (0.5) | (0.7) |
Cost of sales | Commodity contracts | ||||
Derivative [Line Items] | ||||
Pretax gain/(loss) reclassified from AOCI into income | (0.1) | (0.4) | (0.9) | (0.7) |
Cost of sales | Interest rate swap contracts | ||||
Derivative [Line Items] | ||||
Pretax gain/(loss) reclassified from AOCI into income | 0 | 0 | 0 | 0 |
Interest expense | Foreign currency exchange contracts | ||||
Derivative [Line Items] | ||||
Pretax gain/(loss) reclassified from AOCI into income | 0 | 0 | 0 | 0 |
Interest expense | Commodity contracts | ||||
Derivative [Line Items] | ||||
Pretax gain/(loss) reclassified from AOCI into income | 0 | 0 | 0 | 0 |
Interest expense | Interest rate swap contracts | ||||
Derivative [Line Items] | ||||
Pretax gain/(loss) reclassified from AOCI into income | 0 | 0.6 | 0 | 2.5 |
Designated as Hedging Instrument | Interest rate swap contracts | ||||
Derivative [Line Items] | ||||
Pretax gain/(loss) recognized in AOCI | (0.8) | 4 | ||
Gain/(loss) reclassified from AOCI into income | 0 | 0 | ||
Designated as Hedging Instrument | Other (income) expense — net | Interest rate swap contracts | ||||
Derivative [Line Items] | ||||
Gain/(loss) recognized in income (amount excluded from effectiveness testing) | $ 0.3 | $ 1.2 | ||
Designated as Hedging Instrument | Net Investment Hedging | Interest rate swap contracts | ||||
Derivative [Line Items] | ||||
Pretax gain/(loss) recognized in AOCI | 0 | 2.7 | ||
Gain/(loss) reclassified from AOCI into income | 0 | 0 | ||
Designated as Hedging Instrument | Net Investment Hedging | Other (income) expense — net | Interest rate swap contracts | ||||
Derivative [Line Items] | ||||
Gain/(loss) recognized in income (amount excluded from effectiveness testing) | $ 0 | $ 0.4 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Effects of Derivative Financial Instruments on Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Cost of Sales | $ 193.2 | $ 259.6 | $ 544.9 | $ 778.4 |
Interest Expense | 18.1 | 22.4 | 58.5 | 70.9 |
Amount of gain/(loss) reclassified from AOCI into income | (0.2) | 0.1 | (1.4) | 1.1 |
Interest rate contracts | Cost of Sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on hedged item | 0 | 0 | 0 | 0 |
Derivative designated as hedging instrument | 0 | 0 | ||
Amount of gain/(loss) reclassified from AOCI into income | 0 | 0 | 0 | 0 |
Interest rate contracts | Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on hedged item | 0 | 0.1 | 0.1 | (14.2) |
Derivative designated as hedging instrument | 0 | 13.3 | ||
Amount of gain/(loss) reclassified from AOCI into income | 0 | 0.6 | 0 | 2.5 |
Foreign currency exchange contracts | Cost of Sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain/(loss) reclassified from AOCI into income | (0.1) | (0.1) | (0.5) | (0.7) |
Foreign currency exchange contracts | Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain/(loss) reclassified from AOCI into income | 0 | 0 | 0 | 0 |
Commodity contracts | Cost of Sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain/(loss) reclassified from AOCI into income | (0.1) | (0.4) | (0.9) | (0.7) |
Commodity contracts | Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain/(loss) reclassified from AOCI into income | $ 0 | $ 0 | $ 0 | $ 0 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Schedule of Outstanding Commodity Contracts (Details) - Not Designated as Hedging Instrument | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020tT | Dec. 31, 2019Tt | |
Aluminum | ||
Derivative [Line Items] | ||
Commodity units hedged, mass | 133 | 524 |
Copper | ||
Derivative [Line Items] | ||
Commodity units hedged, mass | 51 | 269 |
Steel | ||
Derivative [Line Items] | ||
Commodity units hedged, mass | T | 0 | 1,778 |
Derivative Financial Instrume_8
Derivative Financial Instruments - Location and Effects on Consolidated Statements of Operations of Derivative Instruments Not Designated as Hedging Instruments (Details) - Not Designated as Hedging Instrument - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain/(loss) recognized in income on derivative | $ (2) | $ 3.6 | $ (2.4) | $ 9.3 |
Foreign currency exchange contracts | Other (income) expense — net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain/(loss) recognized in income on derivative | (2.1) | 3.6 | (2.1) | 9.3 |
Commodity contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain/(loss) recognized in income on derivative | $ 0.1 | $ 0 | $ (0.3) | $ 0 |
Derivative Financial Instrume_9
Derivative Financial Instruments - Schedule of the Fair Value of Outstanding Derivative Contracts Recorded as Assets in the Accompanying Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Total asset derivatives | $ 0.4 | $ 1.2 |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Total asset derivatives | 0.2 | 0.8 |
Designated as Hedging Instrument | Prepaids and other current assets | Foreign currency exchange contracts | ||
Derivative [Line Items] | ||
Total asset derivatives | 0.2 | 0.8 |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Total asset derivatives | 0.2 | 0.4 |
Not Designated as Hedging Instrument | Prepaids and other current assets | Foreign currency exchange contracts | ||
Derivative [Line Items] | ||
Total asset derivatives | $ 0.2 | $ 0.4 |
Derivative Financial Instrum_10
Derivative Financial Instruments - Schedule of the Fair Value of Outstanding Derivative Contracts Recorded as Liabilities in the Accompanying Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Total liability derivatives | $ 0.3 | $ 5 |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Total liability derivatives | 0.1 | 3.8 |
Designated as Hedging Instrument | Accrued expenses and other liabilities | Foreign currency exchange contracts | ||
Derivative [Line Items] | ||
Total liability derivatives | 0.1 | 0.6 |
Designated as Hedging Instrument | Accrued expenses and other liabilities | Interest rate swap contracts | ||
Derivative [Line Items] | ||
Total liability derivatives | 0 | 3.2 |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Total liability derivatives | 0.2 | 1.2 |
Not Designated as Hedging Instrument | Accrued expenses and other liabilities | Foreign currency exchange contracts | ||
Derivative [Line Items] | ||
Total liability derivatives | 0.1 | 0.6 |
Not Designated as Hedging Instrument | Accrued expenses and other liabilities | Commodity contracts | ||
Derivative [Line Items] | ||
Total liability derivatives | $ 0.1 | $ 0.6 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Senior Notes | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Fair value of debt | $ 435.8 | $ 450.9 |
Term Loan B Facility | Secured Debt | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Fair value of debt | $ 780.2 | $ 860.9 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Financial Assets and Liabilities Accounted for at Fair Value on a Recurring Basis by Level within the Fair Value Hierarchy (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Total current assets at fair value | $ 0.4 | $ 1.2 |
Total assets at fair value | 0.4 | 1.2 |
Total current liabilities at fair value | 0.3 | 5 |
Total liabilities at fair value | 0.3 | 5 |
Foreign currency exchange contracts | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Derivative assets, current | 0.4 | 1.2 |
Total current liabilities at fair value | 0.2 | 1.2 |
Commodity contracts | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Total current liabilities at fair value | 0.1 | 0.6 |
Interest rate swap contracts | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Total current liabilities at fair value | 3.2 | |
Level 1 | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Total current assets at fair value | 0 | 0 |
Total assets at fair value | 0 | 0 |
Total current liabilities at fair value | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Level 1 | Foreign currency exchange contracts | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Derivative assets, current | 0 | 0 |
Total current liabilities at fair value | 0 | 0 |
Level 1 | Commodity contracts | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Total current liabilities at fair value | 0 | 0 |
Level 1 | Interest rate swap contracts | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Total current liabilities at fair value | 0 | |
Level 2 | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Total current assets at fair value | 0.4 | 1.2 |
Total assets at fair value | 0.4 | 1.2 |
Total current liabilities at fair value | 0.3 | 5 |
Total liabilities at fair value | 0.3 | 5 |
Level 2 | Foreign currency exchange contracts | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Derivative assets, current | 0.4 | 1.2 |
Total current liabilities at fair value | 0.2 | 1.2 |
Level 2 | Commodity contracts | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Total current liabilities at fair value | 0.1 | 0.6 |
Level 2 | Interest rate swap contracts | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Total current liabilities at fair value | 3.2 | |
Level 3 | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Total current assets at fair value | 0 | 0 |
Total assets at fair value | 0 | 0 |
Total current liabilities at fair value | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Level 3 | Foreign currency exchange contracts | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Derivative assets, current | 0 | 0 |
Total current liabilities at fair value | 0 | 0 |
Level 3 | Commodity contracts | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Total current liabilities at fair value | $ 0 | 0 |
Level 3 | Interest rate swap contracts | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Total current liabilities at fair value | $ 0 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Inputs and Valuation Techniques (Details) - Fair Value, Nonrecurring - Level 3 | 9 Months Ended |
Sep. 30, 2020 | |
Long Term Growth Rate | |
Financial assets and liabilities accounted for at fair value on a recurring basis | |
Finite-Lived Intangible Assets, Measurement input | 2.00% |
Weighted Average Cost of Capital | |
Financial assets and liabilities accounted for at fair value on a recurring basis | |
Finite-Lived Intangible Assets, Measurement input | 12.00% |
Pre-Tax Royalty Rate | Minimum | |
Financial assets and liabilities accounted for at fair value on a recurring basis | |
Finite-Lived Intangible Assets, Measurement input | 1.50% |
Pre-Tax Royalty Rate | Maximum | |
Financial assets and liabilities accounted for at fair value on a recurring basis | |
Finite-Lived Intangible Assets, Measurement input | 2.25% |
Contingencies and Significant_2
Contingencies and Significant Estimates (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |
Product Warranty Liability [Line Items] | |||||
Warranty claims expected to be paid | $ 40.8 | $ 40.8 | $ 43.9 | ||
Product liability reserves | 1.6 | 1.6 | 1.3 | ||
Product liability reserves for specific cases | 1 | 1 | 0.7 | ||
Product liability reserves for claims incurred but not reported | 0.6 | 0.6 | |||
Reserve for environmental matters | 0.8 | 0.8 | $ 0.7 | ||
Estimate of possible loss | 3.6 | 3.6 | $ 3.1 | ||
Loss in period | 0.2 | $ 0.3 | 3.6 | ||
Minimum | |||||
Product Warranty Liability [Line Items] | |||||
Estimate of possible loss | 3.6 | 3.6 | 3.1 | ||
Maximum | |||||
Product Warranty Liability [Line Items] | |||||
Estimate of possible loss | $ 6.2 | $ 6.2 | $ 9 |
Product Warranties - Narrative
Product Warranties - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Product Warranty Liability [Line Items] | ||
Standard product warranty period, low end of range | 12 months | |
Standard product warranty period, high end of range | 60 months | |
Short-term portion of deferred revenue | $ 2.7 | $ 3.1 |
Accrued expenses and other liabilities | ||
Product Warranty Liability [Line Items] | ||
Short-term portion of deferred revenue | 1.8 | 1.8 |
Other long-term liabilities | ||
Product Warranty Liability [Line Items] | ||
Long-term portion of deferred revenue | $ 3.6 | $ 3.8 |
Product Warranties - Schedule o
Product Warranties - Schedule of the Summary of Product Warranty Activity (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Warranty activity | ||
Balance at beginning of period | $ 43.9 | |
Additions for issuance of warranties | 21.3 | |
Settlements (in cash or in kind) | (24.3) | |
Currency translation impact | (0.1) | |
Balance at end of period | 40.8 | |
Other long-term liabilities | ||
Product Warranty Liability [Line Items] | ||
Long-term product warranty liabilities | $ 9.5 | $ 10.6 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Period Benefits Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost - benefits earned during the period | $ 0.1 | $ 0.1 | $ 0.1 | $ 0.1 |
Interest cost of projected benefit obligations | 1 | 1.3 | 2.9 | 3.9 |
Expected return on assets | (1.1) | (1.2) | (3.1) | (3.6) |
Amortization of prior service cost | 0 | 0 | ||
Amortization of actuarial net loss | 0.6 | 0.6 | 1.8 | 1.9 |
Settlement loss recognized | 0 | 1.2 | ||
Net periodic benefit cost | 0.6 | 0.8 | 1.7 | 3.5 |
Postretirement Health and Other Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost - benefits earned during the period | 0 | 0 | 0 | 0 |
Interest cost of projected benefit obligations | 0 | 0.1 | 0.1 | 0.2 |
Expected return on assets | 0 | 0 | 0 | (0.1) |
Amortization of prior service cost | (0.1) | 0 | ||
Amortization of actuarial net loss | 0.1 | 0 | 0.5 | 0.2 |
Settlement loss recognized | 0 | 0 | ||
Net periodic benefit cost | $ 0.1 | $ 0.1 | $ 0.5 | $ 0.3 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - Pension Plans - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Reduction in accrued pension obligations | $ 5.5 | |
Non-cash loss for accelerated recognition of unamortized losses | $ 0 | $ 1.2 |
Business Transformation Progr_3
Business Transformation Program and Restructuring - Transformation Program Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Schedule Of Business Transformation Program Costs [Line Items] | ||||
Transformation Program expense | $ 6.7 | $ 12.3 | $ 20.9 | $ 25.8 |
Cost of sales | ||||
Schedule Of Business Transformation Program Costs [Line Items] | ||||
Transformation Program expense | 0.4 | 1.1 | 1.5 | 1.3 |
Selling, general and administrative expenses | ||||
Schedule Of Business Transformation Program Costs [Line Items] | ||||
Transformation Program expense | $ 6.3 | $ 11.2 | $ 19.4 | $ 24.5 |
Business Transformation Progr_4
Business Transformation Program and Restructuring - Rollforward of all Restructuring Activities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Rollforward of all restructuring activities | ||||
Beginning balance | $ 14.9 | |||
Restructuring activities | $ 1.7 | $ (0.2) | 6.3 | $ 5.8 |
Cash payments | (8.8) | |||
Non-cash adjustments | (1.1) | |||
Ending balance | 11.3 | 11.3 | ||
Workforce reductions | 2020 Plans | ||||
Rollforward of all restructuring activities | ||||
Beginning balance | 0 | |||
Restructuring activities | 0.8 | 3.9 | ||
Cash payments | (3.5) | |||
Non-cash adjustments | (0.1) | |||
Ending balance | 0.3 | 0.3 | ||
Workforce reductions | 2019 and Previous Plans | ||||
Rollforward of all restructuring activities | ||||
Beginning balance | 5 | |||
Restructuring activities | 1.4 | |||
Cash payments | (4.4) | |||
Non-cash adjustments | 0 | |||
Ending balance | 2 | 2 | ||
Other | 2020 Plans | ||||
Rollforward of all restructuring activities | ||||
Beginning balance | 0 | |||
Restructuring activities | 1 | |||
Cash payments | 0 | |||
Non-cash adjustments | (1) | |||
Ending balance | 0 | 0 | ||
Pension withdrawal obligation | 2019 and Previous Plans | ||||
Rollforward of all restructuring activities | ||||
Beginning balance | 9.9 | |||
Restructuring activities | 0 | |||
Cash payments | (0.9) | |||
Non-cash adjustments | 0 | |||
Ending balance | $ 9 | $ 9 |
Business Transformation Progr_5
Business Transformation Program and Restructuring - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||||||
Current portion of liability | $ 3.7 | $ 3.7 | $ 6.3 | ||||
Long term-portion of liability | 7.6 | 7.6 | $ 8.6 | ||||
Restructuring activities | 1.7 | $ (0.2) | 6.3 | $ 5.8 | |||
Inventory Write Down | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring activities | 0.4 | 0.4 | |||||
Corporate | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring activities | 0.1 | (0.1) | 1.4 | 3.1 | |||
Americas | Operating Segments | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring activities | 0.7 | $ 2.5 | $ 0 | $ 2.4 | |||
2020 Plans | Workforce reductions | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring activities | 0.8 | 3.9 | |||||
2020 Plans | Americas | Operating Segments | Workforce reductions | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring activities | 2.5 | ||||||
2020 Plans | Corporate Segment | Operating Segments | Workforce reductions | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring activities | 1.4 | ||||||
2019 and Previous Plans | Workforce reductions | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring activities | 1.4 | ||||||
Expected cost remaining | 0.3 | 0.3 | |||||
Fourth Quarter 2019 Restructuring | Workforce reductions | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring activities | 1.4 | ||||||
Fourth Quarter 2019 Restructuring | Accelerated Depreciation | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring activities | $ 0.5 | $ 0.6 | |||||
First Quarter 2019 Restructuring | Workforce reductions | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Expected cost | $ 5.4 | ||||||
Second Quarter 2019 Restructuring | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring activities | 0.6 | ||||||
Second Quarter 2019 Restructuring | Workforce reductions | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring activities | 0.2 | ||||||
Second Quarter 2019 Restructuring | Accelerated Depreciation | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring activities | 0.2 | ||||||
Second Quarter 2019 Restructuring | Inventory Write Down | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring activities | $ 0.2 |
Business Transformation Progr_6
Business Transformation Program and Restructuring - Restructuring Expense (Recovery) by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring activities | $ 1.7 | $ (0.2) | $ 6.3 | $ 5.8 | |
Cost of sales | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring activities | 0.4 | 0 | 0.4 | 0.4 | |
Restructuring and other expense (recovery) | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring activities | 1.3 | (0.2) | 5.9 | 5.4 | |
Corporate | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring activities | 0.1 | (0.1) | 1.4 | 3.1 | |
Americas | Operating Segments | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring activities | 0.7 | $ 2.5 | 0 | 2.4 | |
EMEA | Operating Segments | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring activities | (0.2) | (0.1) | 0.3 | 0.2 | |
APAC | Operating Segments | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring activities | $ 1.1 | $ 0 | $ 2.1 | $ 0.1 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Components of AOCI (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Total accumulated other comprehensive loss | $ 233 | $ 215.1 | $ 213 | $ 253 | $ 230.7 | $ 216.7 | $ 185.3 | $ 186.4 |
Foreign Currency Translation | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Total accumulated other comprehensive loss | (2.6) | (14.4) | (32.5) | (4.3) | (7.8) | 1 | (6.5) | (6.5) |
Tax expense (benefit) | 1.4 | 1.6 | ||||||
Gains and Losses on Cash Flow Hedges | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Total accumulated other comprehensive loss | (0.9) | (1.4) | (2) | (1.6) | (2.2) | (1.5) | (0.2) | 0.8 |
Tax expense (benefit) | 1 | 0.8 | ||||||
Pension & Postretirement | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Total accumulated other comprehensive loss | (33.4) | (32.8) | (33.6) | (35.6) | (34.1) | (35.7) | (37.1) | (35.9) |
Tax expense (benefit) | 6 | 6.5 | ||||||
Accumulated Other Comprehensive Loss | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Total accumulated other comprehensive loss | $ (36.9) | $ (48.6) | $ (68.1) | $ (41.5) | $ (44.1) | $ (36.2) | $ (43.8) | $ (41.6) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Reconciliations for the Changes in AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance | $ 215.1 | $ 213 | $ 253 | $ 216.7 | $ 185.3 | $ 186.4 | $ 253 | $ 186.4 |
Other comprehensive (loss) income before reclassifications | 11.1 | 18 | (27.2) | (8.2) | 6.3 | (3.1) | ||
Reclassifications | 0.9 | 1.4 | 1.3 | 0.5 | 0.6 | 1.1 | ||
Tax effect | (0.3) | 0.1 | (0.7) | (0.2) | 0.7 | (0.2) | ||
Total other comprehensive income (loss), net of tax | 11.7 | 19.5 | (26.6) | (7.9) | 7.6 | (2.2) | 4.6 | (2.5) |
Ending balance | 233 | 215.1 | 213 | 230.7 | 216.7 | 185.3 | 233 | 230.7 |
Foreign Currency Translation | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance | (14.4) | (32.5) | (4.3) | 1 | (6.5) | (6.5) | (4.3) | (6.5) |
Other comprehensive (loss) income before reclassifications | 11.8 | 17.6 | (27.5) | (8.2) | 7.4 | 0.3 | ||
Reclassifications | 0 | 0 | 0 | 0 | 0 | 0 | ||
Tax effect | 0 | 0.5 | (0.7) | (0.6) | 0.1 | (0.3) | ||
Total other comprehensive income (loss), net of tax | 11.8 | 18.1 | (28.2) | (8.8) | 7.5 | 0 | ||
Ending balance | (2.6) | (14.4) | (32.5) | (7.8) | 1 | (6.5) | (2.6) | (7.8) |
Gains and Losses on Cash Flow Hedges | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance | (1.4) | (2) | (1.6) | (1.5) | (0.2) | 0.8 | (1.6) | 0.8 |
Other comprehensive (loss) income before reclassifications | 0.4 | 0.2 | (1.1) | (0.9) | (1.5) | (0.5) | ||
Reclassifications | 0.2 | 0.6 | 0.6 | (0.1) | (0.3) | (0.7) | ||
Tax effect | (0.1) | (0.2) | 0.1 | 0.3 | 0.5 | 0.2 | ||
Total other comprehensive income (loss), net of tax | 0.5 | 0.6 | (0.4) | (0.7) | (1.3) | (1) | ||
Ending balance | (0.9) | (1.4) | (2) | (2.2) | (1.5) | (0.2) | (0.9) | (2.2) |
Pension & Postretirement | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance | (32.8) | (33.6) | (35.6) | (35.7) | (37.1) | (35.9) | (35.6) | (35.9) |
Other comprehensive (loss) income before reclassifications | (1.1) | 0.2 | 1.4 | 0.9 | 0.4 | (2.9) | ||
Reclassifications | 0.7 | 0.8 | 0.7 | 0.6 | 0.9 | 1.8 | ||
Tax effect | (0.2) | (0.2) | (0.1) | 0.1 | 0.1 | (0.1) | ||
Total other comprehensive income (loss), net of tax | (0.6) | 0.8 | 2 | 1.6 | 1.4 | (1.2) | ||
Ending balance | (33.4) | (32.8) | (33.6) | (34.1) | (35.7) | (37.1) | (33.4) | (34.1) |
Total | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance | (48.6) | (68.1) | (41.5) | (36.2) | (43.8) | (41.6) | (41.5) | (41.6) |
Total other comprehensive income (loss), net of tax | 11.7 | 19.5 | (26.6) | (7.9) | 7.6 | (2.2) | ||
Ending balance | $ (36.9) | $ (48.6) | $ (68.1) | $ (44.1) | $ (36.2) | $ (43.8) | $ (36.9) | $ (44.1) |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Loss - Reclassifications (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Cost of sales | $ (193.2) | $ (259.6) | $ (544.9) | $ (778.4) | ||||
Interest expense | (18.1) | (22.4) | (58.5) | (70.9) | ||||
Earnings (loss) before income taxes | 3.7 | 29.5 | (36.8) | 54.1 | ||||
Tax effect | 1.2 | (9.4) | 9.2 | (16.6) | ||||
Net earnings (loss) | 4.9 | $ (17.4) | $ (15.1) | 20.1 | $ 20 | $ (2.6) | (27.6) | 37.5 |
Other income (expense) — net | 0.6 | (2.9) | (0.8) | (11.5) | ||||
Reclassification out of Accumulated Other Comprehensive Income | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Net earnings (loss) | (0.7) | (0.5) | (2.8) | (1.8) | ||||
Reclassification out of Accumulated Other Comprehensive Income | Gains (losses) on cash flow hedges | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Interest expense | 0 | 0.6 | ||||||
Earnings (loss) before income taxes | (0.2) | 0.1 | (1.4) | 1.1 | ||||
Tax effect | 0 | 0.2 | 0.3 | 0.5 | ||||
Net earnings (loss) | (0.2) | 0.3 | (1.1) | 1.6 | ||||
Reclassification out of Accumulated Other Comprehensive Income | Amortization of prior service cost | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Other income (expense) — net | 0.1 | 0 | ||||||
Reclassification out of Accumulated Other Comprehensive Income | Actuarial losses | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Earnings (loss) before income taxes | (0.7) | (0.6) | ||||||
Other income (expense) — net | (2.3) | (2.1) | ||||||
Reclassification out of Accumulated Other Comprehensive Income | Pension settlement | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Other income (expense) — net | 0 | (1.2) | ||||||
Reclassification out of Accumulated Other Comprehensive Income | Amortization of pension and postretirement items | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Earnings (loss) before income taxes | (0.7) | (0.6) | (2.2) | (3.3) | ||||
Tax effect | 0.2 | (0.2) | 0.5 | (0.1) | ||||
Net earnings (loss) | (0.5) | (0.8) | (1.7) | (3.4) | ||||
Reclassification out of Accumulated Other Comprehensive Income | Foreign currency exchange contracts | Gains (losses) on cash flow hedges | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Cost of sales | (0.1) | (0.1) | (0.5) | (0.7) | ||||
Reclassification out of Accumulated Other Comprehensive Income | Commodity contracts | Gains (losses) on cash flow hedges | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Cost of sales | $ (0.1) | $ (0.4) | (0.9) | (0.7) | ||||
Reclassification out of Accumulated Other Comprehensive Income | Interest rate swap contracts | Gains (losses) on cash flow hedges | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Interest expense | $ 0 | $ 2.5 |
Earnings (Loss) Per Share - Ant
Earnings (Loss) Per Share - Antidilutive Shares (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total potential shares of common stock | 2,500,000 | 1,200,000 | 3,586,038 | 1,400,000 |
Performance target achievement (in percent) | 100.00% | |||
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total potential shares of common stock | 2,148,864 | |||
Unvested restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total potential shares of common stock | 788,584 | |||
Unvested performance share units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total potential shares of common stock | 648,590 | |||
Vesting period | 3 years | |||
Unvested performance share units | Minimum | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Vesting percentage | 0.00% | |||
Unvested performance share units | Maximum | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Vesting percentage | 200.00% |
Earnings (Loss) Per Share - Com
Earnings (Loss) Per Share - Components of Basic and Diluted Shares (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted average shares outstanding — Basic | 141,512,207 | 141,072,179 | 141,481,963 | 140,893,966 |
Effect of dilutive securities | 48,540 | 460,611 | 0 | 561,527 |
Weighted average shares outstanding — Diluted | 141,560,747 | 141,532,790 | 141,481,963 | 141,455,493 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Effect of dilutive securities: | 0 | 152,419 | 0 | 209,264 |
Unvested restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Effect of dilutive securities: | 48,540 | 195,813 | 0 | 255,646 |
Unvested performance share units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Effect of dilutive securities: | 0 | 112,379 | 0 | 96,617 |
Earnings (Loss) Per Share - Nar
Earnings (Loss) Per Share - Narrative (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Total potential shares of common stock | 2,500,000 | 1,200,000 | 3,586,038 | 1,400,000 |
Business Segments - Financial I
Business Segments - Financial Information by Segment (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)segment | Sep. 30, 2019USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of business segments | segment | 3 | |||
Total net sales | $ 298.5 | $ 410.5 | $ 833.4 | $ 1,212.1 |
Segment Adjusted Operating EBITDA: | ||||
Amortization expense | (10.2) | (9.4) | (30.2) | (28.8) |
Depreciation expense | (5.1) | (5.3) | (15.5) | (16.2) |
Transaction costs | (0.1) | (0.3) | (0.2) | (0.9) |
Other items | (0.2) | 0 | (3.6) | (0.8) |
Transformation Program expense | (6.7) | (12.3) | (20.9) | (25.8) |
Restructuring activities | (1.7) | 0.2 | (6.3) | (5.8) |
Loss from impairment and disposal of assets — net | (0.4) | (0.2) | (11.7) | (0.2) |
Earnings from operations | 21.2 | 54.8 | 22.5 | 136.5 |
Interest expense | (18.1) | (22.4) | (58.5) | (70.9) |
Other income (expense) — net | 0.6 | (2.9) | (0.8) | (11.5) |
Earnings (loss) before income taxes | 3.7 | 29.5 | (36.8) | 54.1 |
Fair value inventory adjustments | 0.2 | |||
Professional services and other direct acquisition and integration costs | 0.1 | 0.3 | 0.2 | 0.7 |
Operating Segments | ||||
Segment Adjusted Operating EBITDA: | ||||
Total Segment Adjusted Operating EBITDA | 53.7 | 96.9 | 157.7 | 265.8 |
Elimination of intersegment sales | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | (45.2) | (67.9) | (148.5) | (197.7) |
Corporate and unallocated expenses | ||||
Segment Adjusted Operating EBITDA: | ||||
Total Segment Adjusted Operating EBITDA | (8.1) | (14.8) | (46.8) | (50.8) |
Americas | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 202.7 | 284.8 | 564.8 | 828.2 |
Americas | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 221.8 | 318.2 | 630.9 | 929.2 |
Segment Adjusted Operating EBITDA: | ||||
Total Segment Adjusted Operating EBITDA | $ 34.8 | $ 67 | $ 105.8 | $ 184.2 |
Americas | Operating Segments | Geographic Concentration Risk | EBITDA | ||||
Segment Adjusted Operating EBITDA: | ||||
Adjusted Operating EBITDA % by segment | 15.70% | 21.10% | 16.80% | 19.80% |
EMEA | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | $ 58 | $ 74 | $ 163.6 | $ 242.2 |
EMEA | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 73.9 | 95.8 | 209.5 | 301.3 |
Segment Adjusted Operating EBITDA: | ||||
Total Segment Adjusted Operating EBITDA | $ 10.5 | $ 18.6 | $ 29.6 | $ 55.1 |
EMEA | Operating Segments | Geographic Concentration Risk | EBITDA | ||||
Segment Adjusted Operating EBITDA: | ||||
Adjusted Operating EBITDA % by segment | 14.20% | 19.40% | 14.10% | 18.30% |
APAC | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | $ 37.8 | $ 51.7 | $ 105 | $ 141.7 |
APAC | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 48 | 64.4 | 141.5 | 179.3 |
Segment Adjusted Operating EBITDA: | ||||
Total Segment Adjusted Operating EBITDA | $ 8.4 | $ 11.3 | $ 22.3 | $ 26.5 |
APAC | Operating Segments | Geographic Concentration Risk | EBITDA | ||||
Segment Adjusted Operating EBITDA: | ||||
Adjusted Operating EBITDA % by segment | 17.50% | 17.50% | 15.80% | 14.80% |
Business Segments - Revenue by
Business Segments - Revenue by Major Source and Geographic Location (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 298.5 | $ 410.5 | $ 833.4 | $ 1,212.1 |
Commercial Foodservice Equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 249.8 | 341.8 | 699.1 | 1,023.1 |
Aftermarket Parts and Support | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 48.7 | 68.7 | 134.3 | 189 |
Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 202.7 | 284.8 | 564.8 | 828.2 |
Americas | Commercial Foodservice Equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 171.2 | 237.4 | 480.8 | 699.2 |
Americas | Aftermarket Parts and Support | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 31.5 | 47.4 | 84 | 129 |
EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 58 | 74 | 163.6 | 242.2 |
EMEA | Commercial Foodservice Equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 47.1 | 62.9 | 131.4 | 205.9 |
EMEA | Aftermarket Parts and Support | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 10.9 | 11.1 | 32.2 | 36.3 |
APAC | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 37.8 | 51.7 | 105 | 141.7 |
APAC | Commercial Foodservice Equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 31.5 | 41.5 | 86.9 | 118 |
APAC | Aftermarket Parts and Support | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 6.3 | 10.2 | 18.1 | 23.7 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 190 | 263 | 530 | 767.1 |
Other Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 14.6 | 25.7 | 44.1 | 72.4 |
EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 55.8 | 73.2 | 159.7 | 238.1 |
APAC | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 38.1 | $ 48.6 | $ 99.6 | $ 134.5 |
Business Segments - Total Asset
Business Segments - Total Assets by Segment (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 2,150.8 | $ 2,165.3 |
Operating Segments | Americas | ||
Segment Reporting Information [Line Items] | ||
Total assets | 1,498.5 | 1,528 |
Operating Segments | EMEA | ||
Segment Reporting Information [Line Items] | ||
Total assets | 336 | 349.8 |
Operating Segments | APAC | ||
Segment Reporting Information [Line Items] | ||
Total assets | 202 | 211.8 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 114.3 | $ 75.7 |
Subsidiary Guarantors and Sen_3
Subsidiary Guarantors and Senior Notes - Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Condensed Income Statements, Captions [Line Items] | ||||||||
Total net sales | $ 298.5 | $ 410.5 | $ 833.4 | $ 1,212.1 | ||||
Cost of sales | 193.2 | 259.6 | 544.9 | 778.4 | ||||
Gross profit | 105.3 | 150.9 | 288.5 | 433.7 | ||||
Selling, general and administrative expenses | 72.3 | 86.7 | 215.6 | 262.8 | ||||
Amortization expense | 9.9 | 9.4 | 29.2 | 28.8 | ||||
Restructuring and other expenses (recovery) | 1.5 | (0.2) | 9.5 | 5.4 | ||||
Loss from impairment and disposal of assets | 0.4 | 0.2 | 11.7 | 0.2 | ||||
(Loss) earnings from operations | 21.2 | 54.8 | 22.5 | 136.5 | ||||
Interest expense | 18.1 | 22.4 | 58.5 | 70.9 | ||||
Other (income) expense — net | (0.6) | 2.9 | 0.8 | 11.5 | ||||
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 | ||||
Earnings (loss) before income taxes | 3.7 | 29.5 | (36.8) | 54.1 | ||||
Income taxes | (1.2) | 9.4 | (9.2) | 16.6 | ||||
Net earnings (loss) | 4.9 | $ (17.4) | $ (15.1) | 20.1 | $ 20 | $ (2.6) | (27.6) | 37.5 |
Total other comprehensive income (loss), net of tax | 11.7 | $ 19.5 | $ (26.6) | (7.9) | $ 7.6 | $ (2.2) | 4.6 | (2.5) |
Comprehensive income (loss) | 16.6 | 12.2 | (23) | 35 | ||||
Reportable Legal Entities | Parent | ||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||
Total net sales | 0 | 0 | 0 | 0 | ||||
Cost of sales | 0.2 | 0.9 | 0 | 2.7 | ||||
Gross profit | (0.2) | (0.9) | 0 | (2.7) | ||||
Selling, general and administrative expenses | 15.5 | 24.5 | 45.1 | 67.7 | ||||
Amortization expense | 0 | 0 | 0 | 0 | ||||
Restructuring and other expenses (recovery) | 0.1 | 0 | 1.4 | 2.8 | ||||
Loss from impairment and disposal of assets | 0.1 | 0 | 0.1 | 0 | ||||
(Loss) earnings from operations | (15.9) | (25.4) | (46.6) | (73.2) | ||||
Interest expense | 17.7 | 21.7 | 57.2 | 67 | ||||
Other (income) expense — net | (1.8) | (3.1) | (10) | (13.5) | ||||
Equity in earnings of subsidiaries | 19.6 | 49.3 | 26.5 | 130.7 | ||||
Earnings (loss) before income taxes | (12.2) | 5.3 | (67.3) | 4 | ||||
Income taxes | (17.1) | (14.8) | (39.7) | (33.5) | ||||
Net earnings (loss) | 4.9 | 20.1 | (27.6) | 37.5 | ||||
Total other comprehensive income (loss), net of tax | 11.8 | (7.9) | 4.6 | (2.5) | ||||
Comprehensive income (loss) | 16.7 | 12.2 | (23) | 35 | ||||
Reportable Legal Entities | Guarantor Subsidiaries | ||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||
Total net sales | 201.2 | 297.2 | 581.8 | 850.4 | ||||
Cost of sales | 155.9 | 221.6 | 448.7 | 639.1 | ||||
Gross profit | 45.3 | 75.6 | 133.1 | 211.3 | ||||
Selling, general and administrative expenses | 28.9 | 33.8 | 84 | 103.4 | ||||
Amortization expense | 7.2 | 7.2 | 21.3 | 21.4 | ||||
Restructuring and other expenses (recovery) | 0.7 | (0.1) | 5.5 | 1.6 | ||||
Loss from impairment and disposal of assets | 0.5 | (0.1) | 0.5 | (0.1) | ||||
(Loss) earnings from operations | 8 | 34.8 | 21.8 | 85 | ||||
Interest expense | 0.2 | 0.2 | 0.6 | 0.7 | ||||
Other (income) expense — net | (5.9) | (8.7) | (17.4) | (15.5) | ||||
Equity in earnings of subsidiaries | 11.5 | 19.4 | 8.2 | 57 | ||||
Earnings (loss) before income taxes | 25.2 | 62.7 | 46.8 | 156.8 | ||||
Income taxes | 5.6 | 13.4 | 20.3 | 26.1 | ||||
Net earnings (loss) | 19.6 | 49.3 | 26.5 | 130.7 | ||||
Total other comprehensive income (loss), net of tax | 11.6 | (9.8) | 5.5 | (31.2) | ||||
Comprehensive income (loss) | 31.2 | 39.5 | 32 | 99.5 | ||||
Reportable Legal Entities | Non- Guarantor Subsidiaries | ||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||
Total net sales | 169.1 | 243.8 | 506.9 | 714.8 | ||||
Cost of sales | 108.9 | 167.6 | 351.5 | 489.7 | ||||
Gross profit | 60.2 | 76.2 | 155.4 | 225.1 | ||||
Selling, general and administrative expenses | 27.9 | 28.4 | 86.5 | 91.7 | ||||
Amortization expense | 2.7 | 2.2 | 7.9 | 7.4 | ||||
Restructuring and other expenses (recovery) | 0.7 | (0.1) | 2.6 | 1 | ||||
Loss from impairment and disposal of assets | (0.2) | 0.3 | 11.1 | 0.3 | ||||
(Loss) earnings from operations | 29.1 | 45.4 | 47.3 | 124.7 | ||||
Interest expense | 0.2 | 0.5 | 0.7 | 3.2 | ||||
Other (income) expense — net | 7.1 | 14.7 | 28.2 | 40.5 | ||||
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 | ||||
Earnings (loss) before income taxes | 21.8 | 30.2 | 18.4 | 81 | ||||
Income taxes | 10.3 | 10.8 | 10.2 | 24 | ||||
Net earnings (loss) | 11.5 | 19.4 | 8.2 | 57 | ||||
Total other comprehensive income (loss), net of tax | 11 | (9.7) | 4.6 | (28.9) | ||||
Comprehensive income (loss) | 22.5 | 9.7 | 12.8 | 28.1 | ||||
Consolidating Adjustments | ||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||
Total net sales | (71.8) | (130.5) | (255.3) | (353.1) | ||||
Cost of sales | (71.8) | (130.5) | (255.3) | (353.1) | ||||
Gross profit | 0 | 0 | 0 | 0 | ||||
Selling, general and administrative expenses | 0 | 0 | 0 | 0 | ||||
Amortization expense | 0 | 0 | 0 | 0 | ||||
Restructuring and other expenses (recovery) | 0 | 0 | 0 | 0 | ||||
Loss from impairment and disposal of assets | 0 | 0 | 0 | 0 | ||||
(Loss) earnings from operations | 0 | 0 | 0 | 0 | ||||
Interest expense | 0 | 0 | 0 | 0 | ||||
Other (income) expense — net | 0 | 0 | 0 | 0 | ||||
Equity in earnings of subsidiaries | (31.1) | (68.7) | (34.7) | (187.7) | ||||
Earnings (loss) before income taxes | (31.1) | (68.7) | (34.7) | (187.7) | ||||
Income taxes | 0 | 0 | 0 | 0 | ||||
Net earnings (loss) | (31.1) | (68.7) | (34.7) | (187.7) | ||||
Total other comprehensive income (loss), net of tax | (22.7) | 19.5 | (10.1) | 60.1 | ||||
Comprehensive income (loss) | $ (53.8) | $ (49.2) | $ (44.8) | $ (127.6) |
Subsidiary Guarantors and Sen_4
Subsidiary Guarantors and Senior Notes - Balance Sheets (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||||||||
Cash and cash equivalents | $ 122.9 | $ 130.7 | ||||||
Restricted cash | 0.2 | 0 | ||||||
Accounts receivable — net | 161.8 | 183.6 | ||||||
Intercompany trade receivable | 0 | |||||||
Inventories — net | 192.4 | 186.4 | ||||||
Prepaids and other current assets | 67.9 | 28.2 | ||||||
Total current assets | 545.2 | 528.9 | ||||||
Property, plant and equipment — net | 126.7 | 127.5 | ||||||
Operating lease right-of-use assets | 42.5 | 39.9 | ||||||
Goodwill | 936.8 | 933.1 | ||||||
Other intangible assets — net | 471.8 | 507.7 | ||||||
Intercompany long-term notes receivable | 0 | 0 | ||||||
Due from affiliates | 0 | 0 | ||||||
Investment in subsidiaries | 0 | 0 | ||||||
Other non-current assets | 27.8 | 28.2 | ||||||
Total assets | 2,150.8 | 2,165.3 | ||||||
Current liabilities: | ||||||||
Trade accounts payable | 102.4 | 104.4 | ||||||
Accrued expenses and other liabilities | 151.5 | 192.4 | ||||||
Current portion of long-term debt and finance leases | 3.4 | 1.2 | ||||||
Product warranties | 31.3 | 33.3 | ||||||
Intercompany trade payable | 0 | |||||||
Total current liabilities | 288.6 | 331.3 | ||||||
Total long-term debt and finance leases | 1,444.2 | 1,403.1 | ||||||
Deferred income taxes | 89.7 | 81.9 | ||||||
Pension and postretirement health liabilities | 27.2 | 32.8 | ||||||
Intercompany long-term notes payable | 0 | 0 | ||||||
Due to affiliates | 0 | 0 | ||||||
Investment in subsidiaries | 0 | 0 | ||||||
Operating lease liabilities | 32.4 | 29.1 | ||||||
Other long-term liabilities | 35.7 | 34.1 | ||||||
Total non-current liabilities | 1,629.2 | 1,581 | ||||||
Total equity | 233 | $ 215.1 | $ 213 | 253 | $ 230.7 | $ 216.7 | $ 185.3 | $ 186.4 |
Total liabilities and equity | 2,150.8 | 2,165.3 | ||||||
Reportable Legal Entities | Parent | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 17.8 | 10.7 | ||||||
Restricted cash | 0 | |||||||
Accounts receivable — net | 1.8 | 0.1 | ||||||
Intercompany trade receivable | 0 | |||||||
Inventories — net | 0 | 0 | ||||||
Prepaids and other current assets | 45.4 | 6.7 | ||||||
Total current assets | 65 | 17.5 | ||||||
Property, plant and equipment — net | 14.1 | 17 | ||||||
Operating lease right-of-use assets | 2.3 | 0 | ||||||
Goodwill | 0 | 0 | ||||||
Other intangible assets — net | 0.2 | 0 | ||||||
Intercompany long-term notes receivable | 0 | 0 | ||||||
Due from affiliates | 0 | 0 | ||||||
Investment in subsidiaries | 4,427.4 | 4,400.9 | ||||||
Other non-current assets | 6.4 | 7.6 | ||||||
Total assets | 4,515.4 | 4,443 | ||||||
Current liabilities: | ||||||||
Trade accounts payable | 0.2 | 0.2 | ||||||
Accrued expenses and other liabilities | 23 | 35.3 | ||||||
Current portion of long-term debt and finance leases | 2.5 | 0 | ||||||
Product warranties | 0 | 0 | ||||||
Intercompany trade payable | 5.9 | |||||||
Total current liabilities | 25.7 | 41.4 | ||||||
Total long-term debt and finance leases | 1,430.4 | 1,370 | ||||||
Deferred income taxes | 51.2 | 45 | ||||||
Pension and postretirement health liabilities | 14.7 | 15.5 | ||||||
Intercompany long-term notes payable | 15.7 | 15.7 | ||||||
Due to affiliates | 2,730.5 | 2,695.1 | ||||||
Investment in subsidiaries | 0 | 0 | ||||||
Operating lease liabilities | 2.1 | 0 | ||||||
Other long-term liabilities | 12.2 | 7.4 | ||||||
Total non-current liabilities | 4,256.8 | 4,148.7 | ||||||
Total equity | 232.9 | 252.9 | ||||||
Total liabilities and equity | 4,515.4 | 4,443 | ||||||
Reportable Legal Entities | Guarantor Subsidiaries | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 0 | 0.7 | ||||||
Restricted cash | 0 | |||||||
Accounts receivable — net | 72.4 | 82.5 | ||||||
Intercompany trade receivable | 5.9 | |||||||
Inventories — net | 97.8 | 100.2 | ||||||
Prepaids and other current assets | 1.4 | 6.8 | ||||||
Total current assets | 171.6 | 196.1 | ||||||
Property, plant and equipment — net | 71.2 | 66.4 | ||||||
Operating lease right-of-use assets | 4.4 | 3.6 | ||||||
Goodwill | 832.4 | 832.4 | ||||||
Other intangible assets — net | 322.5 | 344.2 | ||||||
Intercompany long-term notes receivable | 10.1 | 10.1 | ||||||
Due from affiliates | 3,478.2 | 3,437.2 | ||||||
Investment in subsidiaries | 0 | 0 | ||||||
Other non-current assets | 4.6 | 4.2 | ||||||
Total assets | 4,895 | 4,894.2 | ||||||
Current liabilities: | ||||||||
Trade accounts payable | 55.8 | 49 | ||||||
Accrued expenses and other liabilities | 67.9 | 87.7 | ||||||
Current portion of long-term debt and finance leases | 0.3 | 0.7 | ||||||
Product warranties | 20.3 | 21.9 | ||||||
Intercompany trade payable | 0 | |||||||
Total current liabilities | 144.3 | 159.3 | ||||||
Total long-term debt and finance leases | 0.4 | 0.6 | ||||||
Deferred income taxes | 0 | 0 | ||||||
Pension and postretirement health liabilities | 9.5 | 10.2 | ||||||
Intercompany long-term notes payable | 0 | 0 | ||||||
Due to affiliates | 0 | 0 | ||||||
Investment in subsidiaries | 292.7 | 300.9 | ||||||
Operating lease liabilities | 2.6 | 1.8 | ||||||
Other long-term liabilities | 18.1 | 20.5 | ||||||
Total non-current liabilities | 323.3 | 334 | ||||||
Total equity | 4,427.4 | 4,400.9 | ||||||
Total liabilities and equity | 4,895 | 4,894.2 | ||||||
Reportable Legal Entities | Non- Guarantor Subsidiaries | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 106 | 119.3 | ||||||
Restricted cash | 0.2 | |||||||
Accounts receivable — net | 87.6 | 101 | ||||||
Intercompany trade receivable | 0 | |||||||
Inventories — net | 94.6 | 86.2 | ||||||
Prepaids and other current assets | 21.1 | 14.7 | ||||||
Total current assets | 309.5 | 321.2 | ||||||
Property, plant and equipment — net | 41.4 | 44.1 | ||||||
Operating lease right-of-use assets | 35.8 | 36.3 | ||||||
Goodwill | 104.4 | 100.7 | ||||||
Other intangible assets — net | 149.1 | 163.5 | ||||||
Intercompany long-term notes receivable | 9.9 | 9.9 | ||||||
Due from affiliates | 0 | 0 | ||||||
Investment in subsidiaries | 0 | 0 | ||||||
Other non-current assets | 16.8 | 16.4 | ||||||
Total assets | 666.9 | 692.1 | ||||||
Current liabilities: | ||||||||
Trade accounts payable | 47.3 | 55.2 | ||||||
Accrued expenses and other liabilities | 60.6 | 69.4 | ||||||
Current portion of long-term debt and finance leases | 0.6 | 0.5 | ||||||
Product warranties | 11 | 11.4 | ||||||
Intercompany trade payable | 0 | |||||||
Total current liabilities | 119.5 | 136.5 | ||||||
Total long-term debt and finance leases | 13.4 | 32.5 | ||||||
Deferred income taxes | 38.5 | 36.9 | ||||||
Pension and postretirement health liabilities | 3 | 7.1 | ||||||
Intercompany long-term notes payable | 4.3 | 4.3 | ||||||
Due to affiliates | 747.6 | 742.1 | ||||||
Investment in subsidiaries | 0 | 0 | ||||||
Operating lease liabilities | 27.7 | 27.3 | ||||||
Other long-term liabilities | 5.6 | 6.3 | ||||||
Total non-current liabilities | 840.1 | 856.5 | ||||||
Total equity | (292.7) | (300.9) | ||||||
Total liabilities and equity | 666.9 | 692.1 | ||||||
Consolidating Adjustments | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | (0.9) | 0 | ||||||
Restricted cash | 0 | |||||||
Accounts receivable — net | 0 | 0 | ||||||
Intercompany trade receivable | (5.9) | |||||||
Inventories — net | 0 | 0 | ||||||
Prepaids and other current assets | 0 | 0 | ||||||
Total current assets | (0.9) | (5.9) | ||||||
Property, plant and equipment — net | 0 | 0 | ||||||
Operating lease right-of-use assets | 0 | 0 | ||||||
Goodwill | 0 | 0 | ||||||
Other intangible assets — net | 0 | 0 | ||||||
Intercompany long-term notes receivable | (20) | (20) | ||||||
Due from affiliates | (3,478.2) | (3,437.2) | ||||||
Investment in subsidiaries | (4,427.4) | (4,400.9) | ||||||
Other non-current assets | 0 | 0 | ||||||
Total assets | (7,926.5) | (7,864) | ||||||
Current liabilities: | ||||||||
Trade accounts payable | (0.9) | 0 | ||||||
Accrued expenses and other liabilities | 0 | 0 | ||||||
Current portion of long-term debt and finance leases | 0 | 0 | ||||||
Product warranties | 0 | 0 | ||||||
Intercompany trade payable | (5.9) | |||||||
Total current liabilities | (0.9) | (5.9) | ||||||
Total long-term debt and finance leases | 0 | 0 | ||||||
Deferred income taxes | 0 | 0 | ||||||
Pension and postretirement health liabilities | 0 | 0 | ||||||
Intercompany long-term notes payable | (20) | (20) | ||||||
Due to affiliates | (3,478.1) | (3,437.2) | ||||||
Investment in subsidiaries | (292.7) | (300.9) | ||||||
Operating lease liabilities | 0 | 0 | ||||||
Other long-term liabilities | (0.2) | (0.1) | ||||||
Total non-current liabilities | (3,791) | (3,758.2) | ||||||
Total equity | (4,134.6) | (4,099.9) | ||||||
Total liabilities and equity | $ (7,926.5) | $ (7,864) |
Subsidiary Guarantors and Sen_5
Subsidiary Guarantors and Senior Notes - Cash Flows (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | $ (26.9) | $ (320.5) |
Cash flows from investing activities | ||
Cash receipts on beneficial interest in sold receivables | 0 | 280.7 |
Capital expenditures | (15.9) | (17.4) |
Acquisition of intangible assets | (0.2) | 0 |
Proceeds from maturity of short-term investment | 0 | 32 |
Intercompany investment | 0 | 0 |
Other | (3.9) | 0.9 |
Net cash (used in) provided by investing activities | (20) | 296.2 |
Cash flows from financing activities | ||
Proceeds from long-term debt | 172.5 | 355 |
Repayments on long-term debt and finance leases | (131.2) | (267.2) |
Debt issuance costs | (2.1) | 0 |
Repayment of short-term borrowings | 0 | (15) |
Payment of contingent consideration | 0 | (0.8) |
Exercises of stock options | 1.1 | 3 |
Payments on tax withholdings for equity awards | (0.7) | (2.2) |
Intercompany financing | 0 | 0 |
Net cash provided by financing activities | 39.6 | 72.8 |
Effect of exchange rate changes on cash | (0.3) | (3.9) |
Net (decrease) increase in cash and cash equivalents and restricted cash | (7.6) | 44.6 |
Balance at beginning of period | 130.7 | 73.2 |
Balance at end of period | 123.1 | 117.8 |
Reportable Legal Entities | Parent | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | (81) | (112.9) |
Cash flows from investing activities | ||
Cash receipts on beneficial interest in sold receivables | 0 | |
Capital expenditures | (1.7) | (3.5) |
Acquisition of intangible assets | 0 | |
Proceeds from maturity of short-term investment | 0 | |
Intercompany investment | 0 | 0 |
Other | (3.9) | 0.9 |
Net cash (used in) provided by investing activities | (5.6) | (2.6) |
Cash flows from financing activities | ||
Proceeds from long-term debt | 172.5 | 355 |
Repayments on long-term debt and finance leases | (112.5) | (223.5) |
Debt issuance costs | (2.1) | |
Repayment of short-term borrowings | 0 | |
Payment of contingent consideration | 0 | |
Exercises of stock options | 1.1 | 3 |
Payments on tax withholdings for equity awards | (0.7) | (2.2) |
Intercompany financing | 35.4 | (13.8) |
Net cash provided by financing activities | 93.7 | 118.5 |
Effect of exchange rate changes on cash | 0 | 0 |
Net (decrease) increase in cash and cash equivalents and restricted cash | 7.1 | 3 |
Balance at beginning of period | 10.7 | 0.2 |
Balance at end of period | 17.8 | 3.2 |
Reportable Legal Entities | Guarantor Subsidiaries | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | 50.4 | (84.1) |
Cash flows from investing activities | ||
Cash receipts on beneficial interest in sold receivables | 75.8 | |
Capital expenditures | (9.3) | (10.2) |
Acquisition of intangible assets | (0.2) | |
Proceeds from maturity of short-term investment | 0 | |
Intercompany investment | (41) | 19.5 |
Other | 0 | 0 |
Net cash (used in) provided by investing activities | (50.5) | 85.1 |
Cash flows from financing activities | ||
Proceeds from long-term debt | 0 | 0 |
Repayments on long-term debt and finance leases | (0.6) | (0.7) |
Debt issuance costs | 0 | |
Repayment of short-term borrowings | 0 | |
Payment of contingent consideration | (0.8) | |
Exercises of stock options | 0 | 0 |
Payments on tax withholdings for equity awards | 0 | 0 |
Intercompany financing | 0 | 0 |
Net cash provided by financing activities | (0.6) | (1.5) |
Effect of exchange rate changes on cash | 0 | 0 |
Net (decrease) increase in cash and cash equivalents and restricted cash | (0.7) | (0.5) |
Balance at beginning of period | 0.7 | 0.5 |
Balance at end of period | 0 | 0 |
Reportable Legal Entities | Non- Guarantor Subsidiaries | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | 4.6 | (122.1) |
Cash flows from investing activities | ||
Cash receipts on beneficial interest in sold receivables | 204.9 | |
Capital expenditures | (4.9) | (3.7) |
Acquisition of intangible assets | 0 | |
Proceeds from maturity of short-term investment | 32 | |
Intercompany investment | 5.6 | (5.7) |
Other | 0 | 0 |
Net cash (used in) provided by investing activities | 0.7 | 227.5 |
Cash flows from financing activities | ||
Proceeds from long-term debt | 0 | 0 |
Repayments on long-term debt and finance leases | (18.1) | (43) |
Debt issuance costs | 0 | |
Repayment of short-term borrowings | (15) | |
Payment of contingent consideration | 0 | |
Exercises of stock options | 0 | 0 |
Payments on tax withholdings for equity awards | 0 | 0 |
Intercompany financing | 0 | 0 |
Net cash provided by financing activities | (18.1) | (58) |
Effect of exchange rate changes on cash | (0.3) | (3.9) |
Net (decrease) increase in cash and cash equivalents and restricted cash | (13.1) | 43.5 |
Balance at beginning of period | 119.3 | 72.5 |
Balance at end of period | 106.2 | 116 |
Consolidating Adjustments | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | (0.9) | (1.4) |
Cash flows from investing activities | ||
Cash receipts on beneficial interest in sold receivables | 0 | |
Capital expenditures | 0 | 0 |
Acquisition of intangible assets | 0 | |
Proceeds from maturity of short-term investment | 0 | |
Intercompany investment | 35.4 | (13.8) |
Other | 0 | 0 |
Net cash (used in) provided by investing activities | 35.4 | (13.8) |
Cash flows from financing activities | ||
Proceeds from long-term debt | 0 | 0 |
Repayments on long-term debt and finance leases | 0 | 0 |
Debt issuance costs | 0 | |
Repayment of short-term borrowings | 0 | |
Payment of contingent consideration | 0 | |
Exercises of stock options | 0 | 0 |
Payments on tax withholdings for equity awards | 0 | 0 |
Intercompany financing | (35.4) | 13.8 |
Net cash provided by financing activities | (35.4) | 13.8 |
Effect of exchange rate changes on cash | 0 | 0 |
Net (decrease) increase in cash and cash equivalents and restricted cash | (0.9) | (1.4) |
Balance at beginning of period | 0 | 0 |
Balance at end of period | $ (0.9) | $ (1.4) |