Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 23, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-37548 | ||
Entity Registrant Name | Welbilt, Inc. | ||
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 Well Known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 856.4 | ||
Entity Common Stock, Shares Outstanding | 141,625,611 | ||
Entity Central Index Key | 0001650962 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Documents Incorporated by Reference | Portions of the registrant's definitive Proxy Statement to be filed with the Securities and Exchange Commission within 120 days after the end of the registrant's fiscal year ended December 31, 2020 are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||||||||||
Net sales | $ 320 | $ 298.5 | $ 206 | $ 328.9 | $ 381.8 | $ 410.5 | $ 426.3 | $ 375.3 | $ 1,153.4 | $ 1,593.9 | $ 1,590.1 |
Cost of sales | 743.4 | 1,027 | 1,020.9 | ||||||||
Gross profit | 121.5 | 105.3 | 68.4 | 114.8 | 133.2 | 150.9 | 156.3 | 126.5 | 410 | 566.9 | 569.2 |
Selling, general and administrative expenses | 285.3 | 344.2 | 309.8 | ||||||||
Amortization expense | 39.1 | 38.7 | 37 | ||||||||
Restructuring and other expense | 10.9 | 9.4 | 6 | ||||||||
Loss from impairment and loss (gain) on disposal of assets — net | 11.6 | 0.7 | (0.4) | ||||||||
Earnings from operations | 40.6 | 21.2 | 0.7 | 0.6 | 37.4 | 54.8 | 57.2 | 24.5 | 63.1 | 173.9 | 216.8 |
Interest expense | 81.4 | 97.3 | 94.5 | ||||||||
Loss on modification or extinguishment of debt | 0 | 0 | 9 | ||||||||
Other (income) expense — net | (4.6) | 0.9 | 24.3 | ||||||||
(Loss) earnings before income taxes | (13.7) | 75.7 | 89 | ||||||||
Income tax (benefit) expense | (6.3) | 19.8 | 10.8 | ||||||||
Net (loss) earnings | $ 20.2 | $ 4.9 | $ (17.4) | $ (15.1) | $ 18.4 | $ 20.1 | $ 20 | $ (2.6) | $ (7.4) | $ 55.9 | $ 78.2 |
Per share data: | |||||||||||
(Loss) earnings per share — Basic (in dollars per share) | $ 0.14 | $ 0.03 | $ (0.12) | $ (0.11) | $ 0.13 | $ 0.14 | $ 0.14 | $ (0.02) | $ (0.05) | $ 0.40 | $ 0.56 |
(Loss) earnings per share — Diluted (in dollars per share) | $ 0.14 | $ 0.03 | $ (0.12) | $ (0.11) | $ 0.13 | $ 0.14 | $ 0.14 | $ (0.02) | $ (0.05) | $ 0.39 | $ 0.55 |
Weighted average shares outstanding — Basic (in shares) | 141,491,326 | 140,953,496 | 140,023,635 | ||||||||
Weighted average shares outstanding — Diluted (in shares) | 141,491,326 | 141,567,785 | 141,388,785 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net (loss) earnings | $ (7.4) | $ 55.9 | $ 78.2 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | 23.4 | 2.2 | (10.9) |
Unrealized gain (loss) on derivatives | 1.6 | (2.4) | (2.8) |
Employee pension and postretirement benefits | (3) | 0.3 | 4.1 |
Total other comprehensive income (loss), net of tax | 22 | 0.1 | (9.6) |
Comprehensive income | $ 14.6 | $ 56 | $ 68.6 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 125 | $ 130.7 |
Restricted cash | 0.4 | 0 |
Accounts receivable, less allowance of $4.4 and $4.0, respectively | 165.9 | 183.6 |
Inventories — net | 180.6 | 186.4 |
Prepaids and other current assets | 50.1 | 28.2 |
Total current assets | 522 | 528.9 |
Property, plant and equipment — net | 129.1 | 127.5 |
Operating lease right-of-use assets | 47.5 | 39.9 |
Goodwill | 942.9 | 933.1 |
Other intangible assets — net | 469.6 | 507.7 |
Other non-current assets | 30.5 | 28.2 |
Total assets | 2,141.6 | 2,165.3 |
Current liabilities: | ||
Trade accounts payable | 86.4 | 104.4 |
Accrued expenses and other liabilities | 164.2 | 192.4 |
Current portion of long-term debt and finance leases | 1 | 1.2 |
Product warranties | 29.9 | 33.3 |
Total current liabilities | 281.5 | 331.3 |
Long-term debt and finance leases | 1,407.8 | 1,403.1 |
Deferred income taxes | 76.5 | 81.9 |
Pension and postretirement health liabilities | 27.8 | 32.8 |
Operating lease liabilities | 37.7 | 29.1 |
Other long-term liabilities | 37.3 | 33.7 |
Total non-current liabilities | 1,587.1 | 1,580.6 |
Commitments and contingencies (Note 13) | ||
Total equity: | ||
Common stock ($0.01 par value, 300,000,000 shares authorized, 141,557,236 shares and 141,213,995 shares issued and outstanding as of December 31, 2020 and 2019, respectively) | 1.4 | 1.4 |
Additional paid-in capital (deficit) | (25.6) | (31) |
Retained earnings | 316.7 | 324.5 |
Accumulated other comprehensive loss | (19.5) | (41.5) |
Total equity | 273 | 253.4 |
Total liabilities and equity | $ 2,141.6 | $ 2,165.3 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Accounts receivable allowance | $ 4.4 | $ 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) | 141,557,236 | 141,213,995 |
Common stock, outstanding (in shares) | 141,557,236 | 141,213,995 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities | |||
Net (loss) earnings | $ (7.4) | $ 55.9 | $ 78.2 |
Adjustments to reconcile net (loss) earnings to cash provided by (used in) operating activities: | |||
Depreciation expense | 21.6 | 21.3 | 18 |
Amortization of intangible assets | 40.6 | 39.8 | 37 |
Amortization of debt issuance costs | 5.2 | 4.7 | 5.5 |
Loss on extinguishment of debt | 0 | 0 | 2.7 |
Deferred income taxes | (8.2) | (19.8) | (12.4) |
Stock-based compensation expense | 4.7 | 7.3 | 7 |
Loss from impairment and loss (gain) on disposal of assets | 11.6 | 0.7 | (0.4) |
Pension settlement | 0 | 1.2 | 2.4 |
(Gain) loss on remeasurement of debt and other realized foreign currency derivative | 0 | (0.6) | 23.4 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 21.8 | (351.4) | (590.4) |
Inventories | 10.2 | 5 | (25.5) |
Other assets | (9.2) | 13.4 | (9.3) |
Trade accounts payable | (21.6) | (46.8) | 39.3 |
Other current and long-term liabilities | (54.3) | (0.4) | (24) |
Net cash provided by (used in) operating activities | 15 | (269.7) | (448.5) |
Cash flows from investing activities | |||
Cash receipts on beneficial interest in sold receivables | 0 | 280.7 | 576.4 |
Capital expenditures | (20.1) | (33.9) | (21.4) |
Acquisition of intangible assets | (0.2) | 0 | (2.8) |
Purchase of short-term investment | 0 | 0 | (35) |
Proceeds from maturity of short-term investment | 0 | 32 | 20.7 |
Business acquisition, net of cash acquired | 0 | 0 | (215.6) |
Settlement of foreign exchange contract | 0 | 0 | (10) |
Other | (3.9) | 1.1 | 1.2 |
Net cash (used in) provided by investing activities | (24.2) | 279.9 | 313.5 |
Cash flows from financing activities | |||
Proceeds from long-term debt | 219.1 | 410 | 475.5 |
Repayments on long-term debt and finance leases | (218.7) | (348.4) | (383.2) |
Debt issuance costs | (2.1) | 0 | (6.8) |
Proceeds from short-term borrowings | 0 | 0 | 30 |
Repayment of short-term borrowings | 0 | (15) | (15) |
Payment of contingent consideration | 0 | (0.8) | (1.4) |
Exercises of stock options | 1.2 | 3.2 | 6.2 |
Payments on tax withholdings for equity awards | (0.8) | (2.4) | (3) |
Net cash (used in) provided by financing activities | (1.3) | 46.6 | 102.3 |
Effect of exchange rate changes on cash | 5.2 | 0.7 | (2.9) |
Net (decrease) increase in cash and cash equivalents and restricted cash | (5.3) | 57.5 | (35.6) |
Balance at beginning of period | 130.7 | 73.2 | 108.8 |
Balance at end of period | 125.4 | 130.7 | 73.2 |
Supplemental disclosures of cash flow information: | |||
Cash paid for income taxes, net of refunds | 17.8 | 36 | 47 |
Cash paid for interest, net of related hedge settlements | 76 | 79 | 94.6 |
Supplemental disclosures of non-cash activities: | |||
Non-cash investing activity: Beneficial interest obtained in exchange for securitized receivables | 0 | 238.6 | 744.7 |
Non-cash financing activity: Reassessments and modifications of right-of-use assets and lease liabilities and assets obtained through leasing arrangements | $ 20.7 | $ 14.9 | $ 0.9 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-In Capital (Deficit) | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive (Loss) Income | Treasury Stock (Note 2) | ||
Common stock, outstanding beginning of period (in shares) at Dec. 31, 2017 | 139,491,860 | |||||||||
Beginning balance at Dec. 31, 2017 | $ 103.6 | $ 1.1 | [1] | $ 1.4 | $ (54.7) | $ 189.1 | $ 1.1 | [1] | $ (32) | $ (0.2) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net (loss) earnings | 78.2 | 78.2 | ||||||||
Issuance of common stock, equity-based compensation plans (in shares) | 760,833 | |||||||||
Issuance of common stock, stock-based compensation plans | 6.2 | 6.2 | ||||||||
Stock-based compensation expense | 7 | 7 | ||||||||
Other comprehensive income (loss) | (9.6) | (9.6) | ||||||||
Value of shares in deferred compensation plan (Note 2) | (0.1) | (0.1) | ||||||||
Common stock, outstanding end of period (in shares) at Dec. 31, 2018 | 140,252,693 | |||||||||
Ending balance at Dec. 31, 2018 | $ 186.4 | 0.2 | [2] | $ 1.4 | (41.5) | 268.4 | 0.2 | [2] | (41.6) | (0.3) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | |||||||||
Net (loss) earnings | $ 55.9 | 55.9 | ||||||||
Issuance of common stock, equity-based compensation plans (in shares) | 961,302 | |||||||||
Issuance of common stock, stock-based compensation plans | 3.2 | 3.2 | ||||||||
Stock-based compensation expense | 7.3 | 7.3 | ||||||||
Other comprehensive income (loss) | 0.1 | 0.1 | ||||||||
Value of shares in deferred compensation plan (Note 2) | (0.1) | (0.1) | ||||||||
Reclassification of deferred compensation liability (Note 2) | $ 0.4 | 0.4 | ||||||||
Common stock, outstanding end of period (in shares) at Dec. 31, 2019 | 141,213,995 | 141,213,995 | ||||||||
Ending balance at Dec. 31, 2019 | $ 253.4 | $ (0.4) | $ 1.4 | (31) | 324.5 | $ (0.4) | (41.5) | 0 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net (loss) earnings | (7.4) | (7.4) | ||||||||
Issuance of common stock, equity-based compensation plans (in shares) | 343,241 | |||||||||
Issuance of common stock, stock-based compensation plans | 0.7 | 0.7 | ||||||||
Stock-based compensation expense | 4.7 | 4.7 | ||||||||
Other comprehensive income (loss) | $ 22 | 22 | ||||||||
Common stock, outstanding end of period (in shares) at Dec. 31, 2020 | 141,557,236 | 141,557,236 | ||||||||
Ending balance at Dec. 31, 2020 | $ 273 | $ 1.4 | $ (25.6) | $ 316.7 | $ (19.5) | $ 0 | ||||
[1] | Effective January 1, 2018, the Company adopted ASU 2014-09 "Revenue from Contracts with Customers (Topic 606)" with additional updates subsequently issued (collectively, "ASU 2014-09"). The cumulative effect of the changes made to the consolidated statement of equity as of January 1, 2018 for the adoption of ASU 2014-09 is related to the establishment of right to return assets in conjunction with its product return policy. | |||||||||
[2] | 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 | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Organization | Business and Organization Description of the Business 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. The Company is headquartered in New Port Richey, Florida, and operates 19 manufacturing facilities globally. The Company 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. Welbilt was incorporated in Delaware in 2015 and became publicly traded in March 2016 under the New York Stock Exchange ("NYSE") ticker symbol "MFS" after the Company completed its spin-off from The Manitowoc Company, Inc. ("MTW") (the "Spin-Off"). On March 6, 2017, shares of the Company commenced trading under a new NYSE ticker symbol, "WBT" when the Company effected its name change from "Manitowoc Foodservice, Inc." to "Welbilt, Inc." |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements include the accounts of Welbilt and its wholly-owned subsidiaries and have been prepared by the Company, pursuant to the rules and regulations of the U.S Securities and Exchange Commission. 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, warranty costs, product liability costs, employee benefit programs, sales rebates 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 March 2020, the World Health Organization declared the outbreak of a disease caused by a novel strain of the coronavirus ("COVID-19") to be a pandemic. This pandemic has created and may continue to create significant uncertainty in the macroeconomic environment which, in addition to other unforeseen effects of this pandemic, may adversely impact the Company's future operating results. As a result, many of the Company's estimates and assumptions may require increased judgment and involve a higher degree of variability and volatility. As the impacts of the pandemic continue to evolve and additional information becomes available, these estimates may change materially in future periods. 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 for the years ended December 31, 2020, 2019 and 2018, the financial position as of December 31, 2020 and 2019 and the cash flows for the years ended December 31, 2020, 2019 and 2018, and except as otherwise discussed herein, such adjustments consist only of those of a normal recurring nature. All dollar amounts, except share and per share amounts, are in millions of dollars unless otherwise indicated. Significant Accounting Policies Cash and Cash Equivalents All short-term investments purchased with an original maturity of three months or less are considered cash equivalents. The Company's policy is to classify operating demand deposit accounts with high credit quality financial institutions, the balances of which at times may exceed federally insured limits. Restricted Cash Cash and cash equivalents that are restricted as to withdrawal or use under the terms of certain contractual agreements, such as letters of credit or bank guarantees, are recorded separately on the Consolidated Balance Sheets. Short-Term Investments The Company considers all investments purchased with an original maturity of more than three months but not greater than one year to be short-term investments. During 2019, the Company held a certificate of deposit with an original scheduled maturity of 12 months, for which the Company had the intent and ability to hold until maturity and was classified as held-to-maturity and carried at amortized cost in the Consolidated Balance Sheets. There were no indicators of other-than-temporary impairment for this security and the Company did not experience any credit losses during any period prior to the June 2019 maturity date of the certificate of deposit. Accounts Receivable Accounts receivable consist primarily of trade receivables due from customers, consisting of distributors, dealers, buying groups and manufacturers' representatives, and are stated net of allowance for amounts that may become uncollectible in the future. The Company's estimate for the allowance for doubtful accounts related to trade receivables includes an evaluation of specific accounts where it has information that the customer may have an inability to meet its financial obligations together with a general provision for unknown but existing doubtful accounts based on historical experience, which are subject to change if experience improves or deteriorates. Accounts receivable are written off once the account is significantly past due and the Company's collection efforts are unsuccessful. Transactions under the Company's accounts receivable securitization program, which was terminated in March 2019, were accounted for as sales. In addition, the Company maintained a "beneficial interest," or right to collect cash, in the sold receivables. Cash receipts from the third-party purchasing financial institution at the time of the sale are classified as operating cash while cash receipts from the beneficial interest on sold receivables are classified as investing activities on the Consolidated Statements of Cash Flows for the years ended December 31, 2019 and 2018. The Company deems the interest rate risk related to the deferred purchase price notes to be de minimis, primarily due to the short average collection cycle of the related receivables (i.e., less than 60 days). See Note 4, "Accounts Receivable Securitization," for further details. Inventories Inventories are valued at the lower of cost or net realizable value. Approximately 90.2% and 91.7% of the Company's inventories were valued using the first-in, first-out ("FIFO") method as of December 31, 2020 and 2019, respectively. The remaining inventories were valued using the last-in, first-out ("LIFO") method. If the FIFO inventory valuation method had been used exclusively, inventories would have increased by $4.3 million and $4.2 million as of December 31, 2020 and 2019, respectively. Finished goods and work-in-process inventories include material, labor and manufacturing overhead costs. All inventories are reduced by a reserve for excess and obsolete inventories. The estimated reserve is based upon specific identification of excess or obsolete inventories based on historical usage, estimated future usage, sales requiring the inventory and on historical write-off experience, and is subject to change if the actual experience deteriorates. The inventories' obsolescence reserves are reported as a reduction of the "Inventories — net" balance in the Consolidated Balance Sheets. Property, Plant and Equipment Property, plant and equipment are stated at cost. Expenditures for maintenance, repairs and minor renewals are charged against earnings as incurred. Expenditures for major renewals and improvements that substantially extend the capacity or useful life of an asset are capitalized and are then depreciated. The Company capitalizes certain internal and external costs incurred to acquire or develop software for internal use. Costs incurred during the preliminary project stage and the post-implementation stage are expensed as incurred. All direct costs incurred to develop internal-use software during the development stage are capitalized. The cost and accumulated depreciation for property, plant and equipment sold, retired, or otherwise disposed of are relieved from the accounts, and resulting gains or losses are reflected in earnings. Property, plant and equipment are depreciated over the estimated useful lives or lease periods of the assets using the straight-line depreciation method for financial reporting and on accelerated methods for income tax purposes. Depreciation for internally developed software commences when the software is available for its intended use. The useful lives are estimated based on historical experience with similar assets, taking into account anticipated technological or other changes. The Company periodically reviews these lives relative to physical factors, economic factors and industry trends. If there are changes in the planned use of property or equipment or if technological changes were to occur more rapidly than anticipated, the useful lives assigned to these assets may need to be shortened, resulting in the recognition of accelerated depreciation expense in future periods. Property, plant and equipment are primarily depreciated over the following estimated useful lives: Years Building and improvements 2 — 40 Machinery, equipment and tooling 2 — 20 Furniture and fixtures 3 — 15 Computer hardware and software for internal use 2 — 10 Leases Effective January 1, 2019, the Company adopted the provisions of Accounting Standards Update ("ASU") ASU 2016-02, "Leases (Topic 842)" including subsequent amendments issued thereafter (collectively, "ASC Topic 842"), which requires lessees to recognize a right-of-use asset and corresponding lease liability on the balance sheet for operating leases while the accounting for finance leases remains substantially unchanged. Under ASC Topic 842, a lease is a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment (i.e., an identified asset) for a period of time in exchange for consideration. The Company determines if an arrangement is a lease at inception. For a contract to be determined to be a lease or contain a lease, it must include explicitly or implicitly identified assets where the Company has the right to substantially all of the economic benefits of the assets and has the ability to direct how and for what purpose the assets are used during the lease term. Leases are classified as either operating or financing. For operating leases, the Company recognizes a lease liability equal to the present value of the remaining lease payments, and a right-of-use asset equal to the lease liability, subject to certain adjustments, such as prepaid rents. The right-of-use asset represents the right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. The Company uses its incremental borrowing rate to determine the present value of the lease payments. The Company’s incremental borrowing rate is the rate of interest that it would have to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. The Company determines the incremental borrowing rates for its leases by applying its applicable borrowing rate, with adjustment, as appropriate, for instruments with similar characteristics. The lease term at the lease commencement date is determined based on the non-cancellable period for which the Company has the right to use the underlying asset, together with any periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option, periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option and periods covered by an option to extend (or not to terminate) the lease in which the exercise of the option is controlled by the lessor. The Company considers a number of factors when evaluating whether the options in its lease contracts are reasonably certain of exercise, such as length of time before an option exercise, expected value of the leased asset at the end of the initial lease term, importance of the lease to the Company's operations, costs to negotiate a new lease and any contractual or economic penalties. In connection with the adoption of ASU Topic 842, prior period results have not been adjusted and continue to be reported under the accounting standards in effect for such period. The Company elected the package of practical expedients available within the standard and as a result, did not reassess the lease classification of existing contracts or leases or the initial direct costs associated with existing leases. The Company also made an accounting policy election not to recognize right-of-use assets and lease liabilities for leases with a lease term of 12 months or less, including leases with renewal options that are reasonably certain to be exercised, and do not include an option to purchase the underlying asset that is reasonably certain of exercise. Instead, lease payments for these leases are recognized as lease expense on a straight-line basis over the lease term. In addition, the Company did not elect the hindsight practical expedient and has elected not to separate the accounting for lease components and non-lease components, for all classes of leased assets. Certain of the Company’s leases included variable lease costs consisting primarily of reimbursement to the lessor for taxes and insurance expenses, and certain non-lease components that transfer a distinct service to the Company, such as maintenance services and usage charges. See additional disclosure of leases in Note 18, "Leases." Business Combinations The Company allocates the fair value of purchase consideration to the assets acquired and liabilities assumed based on their fair values at the acquisition date. The excess of the fair value of purchase consideration over the fair value of these assets acquired and liabilities assumed is recorded as goodwill. When determining the fair values of assets acquired and liabilities assumed, management makes significant estimates and assumptions, especially with respect to intangible assets. Critical estimates in valuing intangible assets include, but are not limited to, expected future cash flows, which includes consideration of future growth rates and margins, customer attrition rates, future changes in technology and brand awareness, loyalty and position, and discount rates. Fair value estimates are based on the assumptions that management believes a market participant would use in pricing the asset or liability. Amounts recorded in a business combination may change during the measurement period, which is a period not to exceed one year from the date of acquisition, as additional information about conditions existing at the acquisition date becomes available. Goodwill and Other Intangible Assets Goodwill and indefinite lived intangibles are not amortized, but are tested for impairment annually, or more frequently, as events dictate. 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 Company's other intangible assets with finite lives are subject to amortization and are tested for impairment whenever events or changes in circumstances indicate that their carrying values may not be recoverable. For additional discussion of impairment testing related to long-lived assets, refer to "Impairment of Long-Lived Assets," below. The Company capitalizes certain internal and external costs to develop technology classified as software to be sold or otherwise marketed to customers. Capitalization of these costs begins when a product's technological feasibility has been established and ends when a product is available for general release to customers. Amortization commences when the software is ready for general release to customers with useful lives estimated on a product-by-product basis. Other intangible assets with finite lives are amortized on a straight-line basis over the following estimated useful lives: Years Customer relationships 10 — 20 Engineering drawings 15 Design libraries 7 — 20 Software to be sold 3 — 4 Patents 10 — 20 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 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. When performing the annual test for impairment or as triggering events dictate, the Company has the option to first assess qualitative factors to determine whether it is more-likely-than-not that the fair value of any reporting unit or indefinite lived intangible asset is less than its carrying amount. In conducting a qualitative assessment, the Company evaluates the totality of relevant events and circumstances 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 impacts of the COVID-19 pandemic on the Company's operations), industry and competitive environment conditions, overall financial performance, business specific events and market considerations. In those instances where the Company concludes that it is not more-likely-than-not that the fair value is less than the carrying amount, no impairment is indicated and no further impairment test is performed. When the Company concludes it is more-likely-than-not that the fair value is less than the carrying amount, a quantitative impairment test is performed at the reporting unit or unit of account level, as applicable. The Company estimates the fair value of the relevant indefinite lived intangible asset based on an income approach using the relief-from-royalty method. The quantitative impairment test identifies both the existence of impairment and the amount of the impairment loss. In conducting the quantitative analysis, the Company compares the estimated fair value to the carrying values of the relevant indefinite-lived intangible asset. When the carrying amount of the indefinite-lived intangible asset exceeds its estimated fair value, the Company recognizes an impairment loss to the extent the carrying value exceeds the estimated fair value; however, the impairment loss for goodwill is limited to the total amount of the goodwill allocated to the reporting unit. The fair value is determined based on an income approach using the relief-from-royalty method. This approach is dependent upon several factors, including estimates of future revenue growth rates and trends, long term growth rates, weighted average cost of capital, royalty rates, discount rates and other variables. Management bases its fair value estimates on assumptions believed to be reasonable, but which are inherently uncertain and could materially affect the valuations. See Note 7, "Goodwill and Other Intangible Assets — Net," for further details on the Company's impairment assessments. Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the assets’ carrying amount may not be recoverable. When reviewing its long-lived assets, other than goodwill and other intangible assets with indefinite lives, the Company groups its assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities and evaluates the asset group against the sum of the undiscounted future cash flows to determine impairment. If an impairment is determined to exist, the impairment loss is calculated based upon comparison of the fair value to the net book value of the assets. Impairment losses on assets held for sale are based on the estimated proceeds to be received, less costs to sell. The Company had no assets held for sale as of December 31, 2020 or 2019. Product Warranties Estimated warranty costs are recorded in cost of sales at the time of sale of the products based on historical warranty experience for the related product or estimates of projected costs due to specific warranty issues on new products. These estimates are reviewed periodically and are adjusted based on changes in facts, circumstances or actual experience. See Note 14, "Product Warranties," for further details. Product Liabilities The Company records product liability reserves for its self-insured portion of any pending or threatened product liability actions. The reserve is based upon two estimates. First, the Company tracks the population of all outstanding pending and threatened product liability cases to determine an appropriate case reserve for each based upon the Company's best judgment and the advice of legal counsel. These estimates are continually evaluated and adjusted based upon changes to facts and circumstances surrounding the individual cases. Second, the Company determines the amount of additional reserve required to cover product liability claims anticipated to have occurred but have not yet been reported and to account for possible adverse development of the established case reserves. This analysis is performed by the Company two times per year. Foreign Currency Translation and Transactions For most of the Company's foreign operations, local currencies are considered the functional currency. Assets and liabilities of non-U.S. dollar functional currency entities are translated to U.S. dollars at year-end exchange rates and the resulting gains and losses arising from the translation of assets and liabilities located outside the U.S. and are recorded as a component of "Accumulated other comprehensive loss" ("AOCI") in the Consolidated Balance Sheets. Income and expense items are translated at average exchange rates in effect during the period and are recorded as a component of "Other (income) expense — net" in the Consolidated Statements of Operations. Derivative Financial Instruments and Hedging Activities The Company enters into derivative instruments to hedge interest rate risk, commodity exposure associated with aluminum, copper and steel prices and foreign currency exchange risk. The Company has adopted written policies and procedures that place all financial instruments under the direction of corporate treasury and restrict all derivative transactions to those intended for hedging purposes. The use of financial instruments for trading purposes is strictly prohibited. The Company records the fair values of all derivatives in the Consolidated Balance Sheets. The Company does not offset the fair values of derivative contract assets and liabilities. The change in a derivative’s fair value is recorded each period in current earnings or comprehensive income, depending on whether the derivative is designated and qualifies as part of a hedge transaction and if so, the type of hedge transaction. The amount of the derivative instrument fair market value adjustments for cash flow hedges and net investment hedges are reported in the Company's Consolidated Statements of Comprehensive Income, net of taxes. The Company recognizes fair market value adjustments for fair value hedges, as well as the offsetting gain or loss on the hedged item attributable to the hedged risk in current earnings within the same line item associated with the hedged item. Stock-Based Compensation The Company's 2016 Omnibus Incentive Plan (the "2016 Plan") permits the granting of stock options, restricted stock awards and units, performance share awards and units, and other types of stock-based and cash awards. Stock-based compensation is measured at the fair value of the stock-based award as of the date of grant and is expensed over the vesting period of the award. The expense, net of forfeitures, is recognized using the straight-line method. Stock-based compensation is recognized only for those stock-based awards expected to vest. Refer to Note 19, "Stock-Based Compensation," for additional discussion regarding details of the Company's stock-based compensation plan. Defined Benefit Plans The Company provides a range of benefits to its employees and retired employees, including, for certain employees, pensions and postretirement health care coverage. The Company records Defined Benefit Plan assets and obligations using amounts calculated annually as of the Company's measurement date utilizing various actuarial assumptions such as discount rates, expected return on plan assets, compensation increases, retirement and mortality rates, and health care cost trend rates as of that date. The approaches used to determine the annual assumptions are as follows: • Discount Rate - The discount rate assumptions are based on the interest rate of non-callable high-quality corporate bonds, with appropriate consideration demographics of the participants in the Company's pension plans and benefit payment terms. • Expected Return on Plan Assets - The expected return on plan assets assumptions are based on the Company's expectation of the long-term average rate of return on assets in the pension funds, which is reflective of the current and projected asset mix of the funds and considers the historical returns earned on the funds. • Retirement and Mortality Rates - The retirement and mortality rate assumptions are based primarily on actual plan experience and actuarial mortality tables. • Health Care Cost Trend Rates - The health care cost trend rate assumptions are developed based on historical cost data, near-term outlook and an assessment of likely long-term trends. Measurements of net periodic benefit cost are based on the assumptions used for the previous year-end measurements of assets and obligations. The Company reviews its actuarial assumptions on an annual basis and makes modifications to the assumptions when appropriate. In accordance with U.S. GAAP, the effects of the modifications are recorded in current periods or amortized over future periods. The Company has developed the assumptions with the assistance of its independent actuaries and other relevant sources, and believes that the assumptions used are reasonable; however, changes in these assumptions could impact the Company's financial position, results of operations or cash flows. See Note 15, "Employee Benefit Plans," for further details. Deferred Compensation Plan The Welbilt Deferred Compensation Plan is an unfunded, non-tax-qualified deferred compensation plan for highly compensated and key management employees and for directors that allows participants to defer a portion of their compensation. The Plan permits the Company, at its option, to make matching contributions to the participants' accounts. The Company utilizes a rabbi trust to hold assets intended to satisfy the Company's obligations under the deferred compensation plan. The trust restricts the Company's use and access to the assets held but is subject to the claims of the Company's general creditors. Plan participants are able to direct deferrals and Company matching contributions into two separate investment programs, Program A and Program B. Program A invests solely in the Company’s stock; dividends paid on the Company’s stock, if any, are automatically reinvested, and all distributions must be made in Company stock. Program A is accounted for as a plan that does not permit diversification. The Company's stock held by Program A, carried at cost, and the corresponding deferred compensation liability are net within equity in the Company's Consolidated Balance Sheets. Program B offers a variety of investment options but does not include Company stock as an investment option. All distributions from Program B must be made in cash. Participants cannot transfer assets between programs. Program B is accounted for as a plan that permits diversification. Changes in the fair value of the assets are recognized in earnings. The deferred compensation obligation is adjusted, with a charge or credit to compensation cost, to reflect changes in the fair value of the obligation. The assets are included in "Other non-current assets", and the related obligations are included in "Other long-term liabilities" in the Consolidated Balance Sheets. Revenue Recognition Revenue is recognized based on the satisfaction of performance obligations, which occurs when service is provided or control of a good transfers to a customer. A majority of the Company's net sales continue to be recognized at the point in time when products are shipped from its manufacturing facilities. The Company records deferred revenue when payment for products is received or due prior to the shipment of products to a customer. Shipping and handling revenues continue to be included as a component of "Net sales" and shipping and handling costs continue to be included in "Cost of sales" in the Consolidated Statements of Operations. Taxes collected from customers, which are subsequently remitted to governmental authorities, are excluded from revenues. For the majority of foodservice equipment and aftermarket parts and support, the transfer of control and revenue recognition materializes when the products are shipped from the manufacturing facility or the service is provided to the customer. The Company typically invoices its customers with payment terms of 30 days and the Company's average collection cycle is generally less than 60 days and the Company has determined these payment terms do not contain a significant financing component. Costs to obtain a customer contract are expensed as incurred as the Company's contract periods are generally one year or less. The amount of consideration received and revenue recognized varies with marketing incentives such as annual customer rebate programs and returns that are offered to customers. Variable consideration as a result of customer rebate programs is typically based on calendar-year purchases and is determined using the expected value method in interim periods as prescribed in the guidance. Customers have the right to return eligible equipment and parts. The expected returns are based on an analysis of historical experience. The estimate of revenue is adjusted at the earlier of when the most likely amount of the expected consideration changes or when the consideration becomes fixed. The impact of such adjustments was not material in the years ended December 31, 2020, 2019 and 2018, respectively. The Company utilizes the practical expedient to not adjust the amount of consideration for the effects of a significant financing component for all instances in which the period between the transfer of goods and payment is one year or less. The Company also utilizes the practical expedient to recognize the costs of obtaining a contract as an expense for contracts with an original expected length of one year or less. Substantially all of the Company's revenues consist of revenues from contracts with customers. These revenues are disaggregated by major source and geographic location and included in Note 22, "Business Segments." The Company believes this disaggregation best depicts the nature, amount, timing and uncertainty of its revenue and cash flows that are affected by economic factors. To a much lesser extent, the Company also recognizes other sources of revenue from both specific foodservice-based projects and subscriptions. The foodservice-based project revenues are recognized at either the point-in-time in which control transfers to the customer or may be recognized over time, depending on the nature of the performance obligations in the contract. Subscription revenues, which consist of subscription fees from customers accessing the Company's cloud-based application, are recognized ratably over the customer's subscription term. The Company sells separately-priced extended warranties that extend coverage beyond the standard product warranty by 12 to 60 months. Payments are made at the inception of the contract and revenue is recognized over the term of the warranty agreement on a straight-line basis, which the Company believes approximates the timing of costs expected to be incurred in satisfying the obligations of the contract. 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-pandemic employee headcount levels. The Compan |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisition | Acquisition On April 19, 2018, the Company, through a wholly-owned subsidiary, acquired 100% of the share capital of Avaj International Holding AB ("Avaj") (the "Crem Acquisition") for aggregate consideration of approximately 1,800 million Swedish Krona ("SEK") or $220.3 million based on the exchange rate in effect on the closing date. The consideration consisted of $159.8 million in cash, including $2.4 million of interest paid to the seller, and an aggregate $60.5 million for the repayment of certain indebtedness owed under third-party borrowings and stockholder loans. The Crem Acquisition was funded through cash on hand and additional borrowings under existing credit lines. Crem International Holding AB ("Crem"), a wholly-owned subsidiary of Avaj, is a global manufacturer of professional coffee machines headquartered in Solna, Sweden. Crem develops, manufactures and markets a full suite of commercial coffee machines for use in offices, restaurants, cafes and coffee shops, catering and convenience stores. The Crem Acquisition provided the Company with an established presence in hot beverage equipment, a complementary product category, potential operational synergies and cross-selling benefits and an increased presence in Europe and Asia. During the years ended December 31, 2020, 2019 and 2018, the Company incurred $0.2 million, $0.6 million and $5.2 million, respectively, of professional fees and other direct acquisition and integration costs related to the Crem Acquisition. These costs are included in "Selling, general and administrative expenses" in the Company's Consolidated Statements of Operations. In addition, the Company entered into a foreign currency exchange contract for the purchase price exposure of SEK 1,800 million, resulting in a loss of $10.0 million in the first half of 2018 which is included in "Other (income) expense — net" in the Consolidated Statements of Operations for the year ended December 31, 2018. The operations of Crem contributed approximately $62.0 million to net sales while incurring a loss from operations of approximately $2.8 million for the year ended December 31, 2018. The loss from operations is inclusive of costs associated with an incident at a subsidiary of Crem which resulted in the diversion of €4.0 million to parties outside of the Company, of which €1.0 million was subsequently recovered. As a result of this incident, the Company recorded a loss of $3.7 million for the diverted funds, net of recovery, and the associated costs for external legal counsel, accounting and administration efforts in "Selling, general and administrative expenses" during the fourth quarter of 2018, of which $3.4 million was incurred directly by Crem. The Company continues to pursue recovery opportunities, however, there can be no assurance that any additional recoveries will be made. Supplemental pro-forma information has not been presented because the effect of this acquisition was not material to the Company's Consolidated Statements of Operations. The following table summarizes the consideration paid for Crem and the amounts of the identified assets acquired and liabilities assumed as of the April 19, 2018 acquisition date: (in millions) Total purchase price $ 220.3 Less: cash acquired 4.7 Total purchase price, net of cash acquired $ 215.6 Recognized amounts of identifiable assets acquired and (liabilities assumed), at fair value: Cash $ 4.7 Accounts receivable 17.2 Inventories 16.9 Prepaids and other current assets 1.9 Property, plant and equipment 4.9 Other intangible assets 131.2 Other non-current assets 2.1 Trade accounts payable (11.4) Accrued expenses and other liabilities (6.0) Deferred income taxes (32.8) Pension and postretirement health obligations (0.4) Other long-term liabilities (5.0) Fair value of assets acquired and liabilities assumed 123.3 Allocation to goodwill $ 97.0 During the first quarter of 2019, the Company finalized its purchase price allocation for the Crem Acquisition with no measurement period adjustments subsequent to December 31, 2018. The fair value for the Company's identifiable intangible assets other than goodwill acquired as part of the Crem Acquisition are as follows: (in millions) Estimated Fair Values Useful Life (in years) Weighted Average Amortization Period (in years) Customer relationships $ 64.2 10 10.0 Design libraries 20.6 7 — 20 10.4 Total definite-lived intangible assets 84.8 10.1 Trade name 46.4 Indefinite Total intangible assets $ 131.2 The goodwill was allocated to the Company's geographic business segments as follows: EMEA $84.2 million and APAC $12.8 million. The goodwill was primarily attributed to increased synergies that are expected to be achieved from the integration of Crem and is not expected to be deductible for tax purposes. During the first quarter of 2020, the Company determined that, for certain intangible assets acquired with the Crem Acquisition, the carrying value of certain intangible assets exceeded the estimated fair value. See Note 7, "Goodwill and Other Intangible Assets — Net," for further details regarding the impairment recognized for the quarter ended March 31, 2020. |
Accounts Receivable Securitizat
Accounts Receivable Securitization | 12 Months Ended |
Dec. 31, 2020 | |
Transfers and Servicing [Abstract] | |
Accounts Receivable Securitization | Accounts Receivable SecuritizationPrior 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. Under this program, the Company generally received cash consideration up to a certain limit and recorded a non-cash exchange for sold receivables for the remainder of the purchase price ("deferred purchase price"). The sale of these receivables qualified for sale accounting treatment. The Company maintained a "beneficial interest," or right to collect cash, in the sold 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. The Company along with certain of its subsidiaries, acted as servicers of the sold receivables. The servicers would administer, collect and otherwise enforce these receivables and were compensated for doing so on terms that were generally consistent with what would be charged by an unrelated servicer. The servicers initially received payments made by obligors on the receivables but were required to remit those payments in accordance with the receivables purchase agreement. Upon termination of the program, the Purchaser had no recourse for uncollectible receivables. 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 year ended December 31, 2019 and have been classified as 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 | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories - Net | Inventories — Net The components of "Inventories — net" are as follows: (in millions) As of December 31, 2020 2019 Inventories — net: Raw materials $ 85.6 $ 81.4 Work-in-process 13.9 14.2 Finished goods 85.4 95.0 Total inventories at FIFO cost 184.9 190.6 LIFO Reserve (4.3) (4.2) Total inventories — net $ 180.6 $ 186.4 |
Property, Plant and Equipment -
Property, Plant and Equipment - Net | 12 Months Ended |
Dec. 31, 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) As of December 31, 2020 2019 Property, plant and equipment — net: Land $ 9.7 $ 9.7 Building and improvements 99.8 93.2 Machinery, equipment and tooling 231.7 223.3 Furniture and fixtures 8.1 7.6 Computer hardware and software for internal use 66.8 66.1 Construction in progress 14.1 22.0 Total cost 430.2 421.9 Less accumulated depreciation (301.1) (294.4) Total property, plant and equipment — net $ 129.1 $ 127.5 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets - Net | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets - Net | Goodwill and Other Intangible Assets — Net 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. 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 which 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 loss (gain) on disposal of assets — net" for the year ended December 31, 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. 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 December 31, 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 business segment for the years ended December 31, 2020, 2019 and 2018 are as follows: (in millions) Americas EMEA APAC Total Goodwill balance at December 31, 2018 (1) $ 832.6 $ 83.1 $ 19.9 $ 935.6 Foreign currency impact — (2.5) — (2.5) Goodwill balance at December 31, 2019 $ 832.6 $ 80.6 $ 19.9 $ 933.1 Foreign currency impact — 8.7 1.1 9.8 Goodwill balance at December 31, 2020 $ 832.6 $ 89.3 $ 21.0 $ 942.9 (1) Goodwill is net of accumulated impairment losses of $515.7 million: $312.2 million recorded for the Americas and $203.5 million recorded for EMEA, both of which were recorded prior to December 31, 2018. The gross carrying amounts and accumulated amortization of the Company's intangible assets, other than goodwill, are as follows: (in millions) As of December 31, 2020 2019 Gross Impairment Charges Accumulated Net Gross Accumulated Net Customer relationships $ 479.1 $ — $ (271.6) $ 207.5 $ 472.8 $ (243.6) $ 229.2 Trademarks and trade names 223.1 (11.1) — 212.0 217.6 — 217.6 Other intangibles 173.1 — (126.6) 46.5 166.9 (109.8) 57.1 Patents 5.8 — (2.2) 3.6 5.8 (2.0) 3.8 Total $ 881.1 $ (11.1) $ (400.4) $ 469.6 $ 863.1 $ (355.4) $ 507.7 As of December 31, 2020, trademarks and trade names by business segment are: $130.6 million in the Americas, $73.6 million in EMEA and $7.8 million in APAC. Amortization expense for the years ended December 31, 2020, 2019 and 2018 was $40.6 million, $39.8 million and $37.0 million, respectively. Amortization expense related to software to be sold classified as a component of "Cost of sales" in the Consolidated Statements of Operations amounted to $1.5 million and $1.1 million, for the years ended December 31, 2020, and 2019, respectively. There was no amortization expense for software to be sold for the year ended December 31, 2018. As of December 31, 2020, the weighted average remaining useful lives of the definite-lived intangible assets for customer relationships, patents, and other intangibles was 7 years, 15 years and 4 years, respectively, and the weighted average remaining useful life of all definite-lived intangible assets was approximately 7 years. As of December 31, 2020, the estimated future amortization for the Company's definite lived intangible assets for each of the five succeeding years is as follows: (in millions) Year ending December 31: 2021 $ 45.1 2022 $ 40.4 2023 $ 32.7 2024 $ 31.8 2025 $ 31.8 |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 12 Months Ended |
Dec. 31, 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) As of December 31, 2020 2019 Accrued expenses and other liabilities: Accrued rebates and commissions $ 40.1 $ 56.2 Miscellaneous accrued expenses 41.1 37.8 Employee related expenses 35.6 34.7 Interest payable 16.1 15.8 Operating lease liabilities 9.7 10.0 Restructuring liabilities 4.0 6.3 Business Transformation Program related expenses 0.8 5.8 Derivative liabilities 0.6 5.0 Income and other taxes payable 5.6 11.2 Deferred revenues 2.9 3.1 Customer deposits 3.9 3.1 Pension and postretirement health liabilities 2.1 2.1 Product liabilities 1.7 1.3 Total accrued expenses and other liabilities $ 164.2 $ 192.4 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The 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. "(Loss) earnings before income taxes" in the Consolidated Statements of Operations consists of the following: (in millions) Years Ended December 31, 2020 2019 2018 Domestic $ (73.6) $ (35.8) $ (8.0) Foreign 59.9 111.5 97.0 Total (loss) earnings before income taxes $ (13.7) $ 75.7 $ 89.0 "Income tax (benefit) expense " in the Consolidated Statements of Operations consists of the following: (in millions) Years Ended December 31, 2020 2019 2018 Current: Federal and state $ (14.7) $ 9.0 $ (4.3) Foreign 16.6 30.4 29.1 Total current tax expense 1.9 39.4 24.8 Deferred: Federal and state (1.8) (15.0) (14.0) Foreign (6.4) (4.6) — Total deferred tax benefit (8.2) (19.6) (14.0) Total: Federal and state (16.5) (6.0) (18.3) Foreign 10.2 25.8 29.1 Income tax (benefit) expense $ (6.3) $ 19.8 $ 10.8 A reconciliation of the U.S. federal statutory income tax rate to the Company's effective tax rate is as follows: Years Ended December 31, 2020 2019 2018 Federal income tax at statutory rate 21.0 % 21.0 % 21.0 % State income expense (benefit) 1.3 (0.2) 0.5 Manufacturing and research incentives 7.1 (1.2) (3.1) Taxes on foreign income (6.6) 8.4 7.6 Repatriation of foreign income - Tax Act — — (11.2) Global intangible low taxed income - Tax Act — 2.0 1.5 Foreign derived intangible income — (1.0) (1.3) CARES Act net operating loss carryback 51.2 — — Adjustments for valuation allowances 1.5 (2.1) (0.2) Unrecognized tax benefits (19.1) (1.9) 0.2 Discrete adjustments — — (2.6) US permanent adjustments - Non Tax Act (1) (8.8) 0.5 0.7 Other items (1) (1.6) 0.7 (1.0) Effective tax rate 46.0 % 26.2 % 12.1 % (1) Reclassified amounts from "Other items" of 0.5% and 0.7%, for the years ended December 31, 2019 and 2018, respectively, to "US Permanent adjustments - Non Tax Act." Due to the loss before income taxes for the year ended December 31, 2020, a positive percentage change for such year in the effective tax rate table reflects a favorable income tax benefit, whereas a negative percentage change in the effective tax rate table reflects an unfavorable income tax expense. For the year ended December 31, 2020, the Company's effective tax rate was 46.0%, compared to an effective tax rate of 26.2% for the year ended December 31, 2019. The increase in effective tax rate for the year ended December 31, 2020 is primarily the result of a 51.2% income tax benefit for CARES Act net operating loss carryback provisions, in addition to increased income tax benefit percentage changes of 3.6% for changes in valuation allowances of foreign entities related to loss carryforwards and 8.3% for manufacturing and research incentive credits. These increases are partially offset by 17.2% of income tax expense percentage changes for unrecognized tax benefits related to taxes on foreign income and the Tax Act regulations, 9.3% for U.S. permanent adjustments - Non Tax Act and 15.0% for taxes on foreign income. Taxes on foreign income unfavorably impacted the effective tax rate for both the years ended December 31, 2020 and 2019 primarily as a result of earnings in high-tax jurisdictions, including Germany, China, and Canada whose statutory rates range from 25% to 30%. For the year ended December 31, 2019, the Company's effective tax rate was 26.2%, compared to an effective tax rate of 12.1% for the same period of the prior year. The increase in the effective tax rate was primarily the result of a 11.2% income tax benefit recorded for the year ended December 31, 2018 to incorporate the impact of the Tax Act within the measurement period and a 1.9% decrease in the tax benefit received from manufacturing and research incentives. These increases are partially offset by 2.1% of tax benefits for favorable audit settlements and the expiration of the statute of limitations for unrecognized tax benefits and a 1.9% increase in tax benefits resulting from valuation allowance adjustments for the year ended December 31, 2019 as compared to the same period of the prior year. Taxes on foreign income unfavorably impacted the effective tax rate for both the years ended December 31, 2019 and 2018 primarily as a result of earnings in high tax jurisdictions, including Germany, China, and Canada whose statutory rates range from 25% to 30%. As of December 31, 2020, the Company intends to continue reinvesting foreign earnings indefinitely outside the U.S. 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. Deferred income tax assets and liabilities are provided for the impact of temporary differences between amounts of assets and liabilities recognized for financial reporting purposes and the bases of such assets and liabilities as measured by tax laws. These temporary differences result in taxable or deductible amounts in future years. Significant components of the Company’s non-current deferred tax assets and liabilities are as follows: (in millions) As of December 31, 2020 2019 Non-current deferred tax assets (liabilities): Inventories $ 4.3 $ 3.5 Accounts receivable 0.5 0.5 Property, plant and equipment (9.0) (6.7) Intangible assets (123.1) (130.9) Deferred employee benefits 14.8 15.2 Product warranty reserves 7.5 8.4 Product liability reserves 1.7 1.7 Operating lease right-of-use assets (11.8) (9.9) Operating lease liabilities 11.7 9.7 Interest carryforwards 16.2 20.6 Loss carryforwards 43.4 36.2 Credit carryforwards 6.5 — Other 6.8 12.8 Non-current deferred tax liabilities (30.5) (38.9) Less valuation allowance (30.9) (28.3) Net non-current deferred tax liabilities $ (61.4) $ (67.2) Current and long-term tax assets and liabilities included in the Company's Consolidated Balance Sheets consist of the following: (in millions) As of December 31, Consolidated Balance Sheets Line Item Location 2020 2019 Income tax receivable $ 27.4 $ 11.3 Prepaids and other current assets Deferred tax assets $ 15.1 $ 14.7 Other non-current assets Income taxes payable $ (5.6) $ (11.2) Accrued expenses and other liabilities Income taxes payable $ (0.1) $ (0.6) Other long-term liabilities Deferred tax liabilities $ (76.5) $ (81.9) Deferred income taxes As of December 31, 2020, the Company has approximately $199.0 million of pre-tax foreign loss carryforwards, which are available to reduce future foreign taxable income. Pre-tax loss carryforwards of $134.9 million resulted in deferred tax assets that were fully offset by a valuation allowance, after considering the weight of all available evidence and determination that it was more-likely-than-not that such deferred tax assets will not be realized. Substantially all of these foreign loss carryforwards do not have expirations dates. 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 revised by the CARES Act. The Company may adjust its deferred tax asset valuation allowances accordingly based on possible sources of taxable income that may available to realize a tax benefit for deferred tax assets. As of December 31, 2020, the Company has determined that a valuation allowance is not required for the deferred tax asset associated with the U.S. interest expense primarily due to the revised interest deduction limitations of the CARES Act that were applicable for determination of U.S. federal taxable income for the tax years 2020 and 2019. The Company will continue to record a deferred tax asset related to the U.S. interest expense limitation until future reversals of existing taxable temporary differences or projected future taxable income are not sufficient to utilize the U.S. deferred tax asset. For the year ended December 31, 2020, the Company determined that, based on a change in facts and the weight of all available evidence, it is more-likely-than-not that a deferred tax asset of $0.9 million in EMEA entities is realizable, and has reduced the valuation allowance accordingly. The Company determined that deferred income tax assets of certain entities in the United Kingdom, Singapore, Thailand and India will not be realized and has not released these valuation allowance as of December 31, 2020. A reconciliation of the Company's gross change in unrecognized tax benefits, excluding interest and penalties, is as follows: (in millions) Years Ended December 31, 2020 2019 2018 Balance at beginning of year $ 2.9 $ 11.5 $ 12.3 Additions based on tax positions related to the current year 2.7 — — Additions for tax positions of prior years 2.9 — 3.3 Reductions for tax positions of prior years — — (4.1) Reductions based on settlements with taxing authorities — (1.3) — Reductions for lapse of statute of limitations (0.1) (7.3) — Balance at end of year $ 8.4 $ 2.9 $ 11.5 The increase in the unrecognized tax benefits from December 31, 2019 to December 31, 2020 is primarily due to the uncertain tax positions related to the interest limitations of the Tax Act, including relevant regulations, and the U.S taxes on foreign income. Accrued interest and penalties were $1.5 million and $1.3 million, as of December 31, 2020 and 2019, respectively. As of December 31, 2020 and 2019, the Company's net liability related to unrecognized tax benefits, including accrued interest and penalties, is $9.9 million and $4.2 million, respectively, and is included in "Other long-term liabilities" in the Consolidated Balance Sheets. The Company recognized (benefit) expense for interest and penalties of $0.2 million, $(0.2) million, and $0.2 million for the years ended December 31, 2020, 2019 and 2018, respectively, included in current income tax expense in the Consolidated Statements of Operations. The Company’s unrecognized tax benefits as of December 31, 2020, 2019 and 2018, if recognized, would impact the effective tax rate. During the next twelve months, it is reasonably possible that unrecognized tax benefits could change in the range of $1.1 million to $2.0 million due to the expiration of the relevant statutes of limitations, resolution of relevant court cases and federal, state and foreign tax audit resolutions. The Company files tax returns in multiple jurisdictions and is subject to examination by taxing authorities globally. The Company regularly assesses the likelihood of an adverse outcome resulting from examinations to determine the adequacy of its tax reserves. As of December 31, 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. 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. The Company's separate federal and state tax returns for tax years 2017 through 2019 and 2015 through 2019, respectively, remain subject to examination by U.S. federal and various state taxing |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt The carrying value of the Company's outstanding debt consists of the following: As of December 31, 2020 As of December 31, 2019 (in millions, except percentage data) Carrying value Weighted Average Interest Rate Carrying value Weighted Average Interest Rate Long-term debt and finance leases: Revolving Credit Facility $ 143.0 4.21 % $ 141.8 5.00 % Term Loan B Facility 855.0 3.45 % 855.0 5.11 % 9.50% Senior Notes due 2024 425.0 9.72 % 425.0 9.72 % Finance leases 2.2 4.80 % 2.5 4.83 % Total debt and finance leases, including current portion 1,425.2 1,424.3 Less current portion: Finance leases (1.0) (1.2) Unamortized debt issuance costs (1) (16.7) (20.5) Hedge accounting fair value adjustment (2) 0.3 0.5 Total long-term debt and finance leases $ 1,407.8 $ 1,403.1 (1) Total debt issuance costs, net of amortization as of December 31, 2020 and 2019 were $20.3 million and $23.0 million, respectively, of which $3.6 million and $2.5 million are related to the Revolving Credit Facility 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. 2016 Credit Agreement 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 (the "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 a (i) sublimit for the issuance of letters of credit under the revolving commitments to $30.0 million and (ii) 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 proforma secured leverage ratio does not exceed 3.75:1.00. The maturity of the Term Loan B Facility and Revolving Credit Facility is October 2025 and October 2023, respectively. Each of the terms above were applicable with the latest amendment completed in April 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. The 2016 Credit Agreement and indenture governing the Senior Secured Credit Facility contains limitations on the Company's ability to effect mergers and change of control events as well as certain other limitations, including limitations on: (i) the declaration and payment of dividends or other restricted payments, (ii) incurrence of additional indebtedness or issuing preferred stock, (iii) the creation or existence of certain liens, (iv) incurrence of restrictions on the ability of certain of the Company's subsidiaries to pay dividends or other payments, (v) transactions with affiliates and (vi) sales of assets. The Company’s obligations under the 2016 Credit Agreement are jointly and severally guaranteed by certain of its existing and future direct and indirectly wholly owned U.S. subsidiaries (but excluding (i) unrestricted subsidiaries, (ii) immaterial subsidiaries, (iii) special purpose securitization vehicles and (iv) controlled foreign corporations (“CFCs”) or any subsidiary substantially all the assets of which consist of equity interests of one or more CFCs or other CFC holding companies). At inception, borrowings under the Senior Secured Credit Facility bore interest at a rate per annum equal to, at the option of the Company, (i) LIBOR plus the applicable margin of 4.75% (reduced in connection with amendments to 3.00% in March 2017, to 2.75% in September 2017 and to 2.50% in October 2018) for the Term Loan B Facility and 1.50% - 2.75% for the Revolving Credit Facility, based on consolidated total leverage, or (ii) an alternate base rate plus the applicable margin, which was 1.00% lower than for LIBOR loans. The 2016 Credit Agreement was amended during the year ended December 31, 2018, for which the Company incurred costs of $12.8 million. Of this amount, $4.6 million associated with the Term Loan B facility were capitalized and recorded in "Long-term debt and finance leases" and $1.9 million associated with the Revolving Credit Facility in "Other non-current assets" in the Consolidated Balance Sheets each to be amortized over their respective amended terms applicable in the October 2018 amendment to the 2016 Credit Agreement. The remaining $6.3 million of costs incurred were expensed as these costs related to third-party costs in association with modification of the 2016 Credit Agreement and have been included in "Loss on modification or extinguishment of debt" in the Consolidated Statements of Operations for the year ended December 31, 2018. In connection with this amendment, the Company also recorded a $1.7 million loss on extinguishment of debt related to the write-off of the unamortized debt issuance costs, which is included in "Loss on modification or extinguishment of debt" in the Consolidated Statements of Operations for the year ended December 31, 2018. During the year ended December 31, 2018, the Company also made $45.0 million of voluntary principal prepayments on the Term Loan B Facility and incurred losses for the write-off of the related unamortized debt issuance costs of $1.0 million, which is included in "Loss on modification or extinguishment of debt" in the Consolidated Statements of Operations for the year ended December 31, 2018. During the fourth quarter of 2018 and 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 a range from 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 which was 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 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 a change in the Company's Consolidated Total Leverage Ratio as of March 31, 2020. In April 2020, the Company entered into Amendment No. 7 ("Amendment No. 7") 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 Amendment No. 7, 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 until 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 as of June 30, 2020 and will return to the March 31, 2020 covenant levels by the fourth quarter of 2021. Amendment No. 7 prohibits draws under the Revolving Credit Facility (i) if the Company has not evidenced compliance with the financial covenants for the year ending 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. Amendment No. 7 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. Amendment No. 7 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 Amendment No. 7 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 December 31, 2020, the Company had $7.0 million in outstanding stand-by letters of credit and $250.0 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 December 31, 2020, the Company also had $1.8 million in other outstanding letters of credit or guarantees of payment to certain third-parties in accordance with commercial terms and conditions and which do not reduce the amount available for additional borrowings under the Revolving Credit Facility. The Company has estimated the negative impact of the COVID-19 pandemic 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, third and fourth 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 December 31, 2020, the Company was in compliance with all affirmative and negative covenants pertaining to its financing arrangements. Senior Notes In February 2016, the Company issued 9.50% Senior Notes due 2024 in an aggregate principal amount of $425.0 million (the "Senior Notes") under an indenture with Wells Fargo Bank, National Association, as trustee (the "Trustee"). The Senior Notes are fully and unconditionally guaranteed, jointly and severally, on an unsecured basis by each of the Company's domestic restricted subsidiaries that is a borrower or guarantor under the Senior Secured Credit Facilities. The Senior Notes and the subsidiary guarantees are unsecured, senior obligations. The Senior Notes were initially sold to qualified institutional buyers pursuant to Rule 144A (and outside the U.S. in reliance on Regulation S) under the Securities Act of 1933 ("Securities Act"). In September 2016, the Company completed an exchange offer pursuant to which all of the initial Senior Notes were exchanged for new Senior Notes, the issuance of which was registered under the Securities Act. The Senior Notes are redeemable, at the Company's option, in whole or in part from time to time, at a redemption price (expressed as percentages of the principal amount thereof) equal to 100.0% of the principal amount thereof plus a "make-whole" premium and accrued but unpaid interest to the date of redemption during the remaining 12-month periods commencing on February 15 of the years set forth below: Percentage 2020 104.750 % 2021 102.375 % 2022 and thereafter 100.000 % The Company must generally offer to repurchase all the outstanding Senior Notes upon the occurrence of certain specific change of control events at a purchase price equal to 101.0% of the principal amount of Senior Notes purchased plus accrued and unpaid interest to the date of purchase. The indenture provides for customary events of default. Generally, if an event of default occurs (subject to certain exceptions), the Trustee or the holders of at least 25% in aggregate principal amount of the then-outstanding Senior Notes may declare all the Senior Notes to be due and payable immediately. The indenture governing the Senior Notes contains limitations on the Company's ability to effect mergers and change of control events as well as other limitations, including limitations on: the declaration and payment of dividends or other restricted payments; incurring additional indebtedness or issuing preferred stock; the creation or existence of certain liens; incurring restrictions on the ability of certain of the Company's subsidiaries to pay dividends or other payments; transactions with affiliates; and sales of assets. As of December 31, 2020, the Company was in compliance with all affirmative and negative covenants pertaining to the Senior Notes. Revolving Loan Facility In April 2018, the Company, through a wholly-owned subsidiary, entered into a short-term secured $30.0 million revolving loan facility for working capital requirements at an interest rate based on LIBOR plus an applicable margin of 1.90%. The Company repaid the outstanding balance of the facility during the first quarter of 2019 prior to the maturity of the facility on April 18, 2019. Future Debt Maturities Future debt maturities, excluding finance leases, as of December 31, 2020 and for succeeding years are as follows: (in millions) Year ending December 31: 2021 $ — 2022 — 2023 143.0 2024 434.0 2025 846.0 Thereafter — Total $ 1,423.0 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial InstrumentsThe 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 AOCI 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 are 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 $0.9 million of unrealized gains, net of tax, related to currency rate, commodity price and interest rate risk 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 outstanding commodity and currency forward contracts were entered into as hedges of forecasted transactions and continue to qualify for hedge accounting are as follows: Commodity Units Hedged Unit As of December 31, 2020 (1) 2019 (1) 2018 Aluminum — — 1,446 MT Copper — — 546 MT Steel — — 7,080 Short tons (1) As of October 1, 2019, the Company elected to de-designate all of its commodity derivative contracts. Currency Units Hedged (in millions) As of December 31, 2020 2019 2018 Canadian Dollar 6.4 8.0 11.0 Euro 3.3 7.6 9.9 British Pound 6.1 8.0 12.0 Mexican Peso 92.8 111.3 176.0 Singapore Dollar 2.3 2.0 1.5 The effects of Company's derivative instruments on the Consolidated Statements of Comprehensive Income and Consolidated Statements of Operations for gains or losses initially recognized in AOCI in the Consolidated Balance Sheets were as follows: Derivatives in cash flow hedging relationships Pretax gain/(loss) recognized in AOCI Pretax gain/(loss) reclassified from AOCI into income (in millions) Years Ended December 31, Location Years Ended December 31, 2020 2019 2018 2020 2019 2018 Foreign currency exchange contracts $ 0.5 $ 0.4 $ (2.2) Cost of sales $ (0.4) $ (0.9) $ (0.7) Commodity contracts — (1.2) (1.0) Cost of sales (1.0) (1.3) 2.3 Interest rate swap contracts — (1.7) 3.4 Interest expense — 2.6 1.9 Total $ 0.5 $ (2.5) $ 0.2 $ (1.4) $ 0.4 $ 3.5 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 Years Ended December 31, 2020 2019 2018 Cost of Sales Interest Expense 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 $ 743.4 $ 81.4 $ 1,027.0 $ 97.3 $ 1,020.9 $ 94.5 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) $ — $ 5.3 Derivative designated as hedging instrument $ — $ — $ — $ 13.3 $ — $ (4.0) Gain/(loss) on cash flow hedging relationships: Foreign currency exchange contracts: Amount of gain/(loss) reclassified from AOCI into income $ (0.4) $ — $ (0.9) $ — $ (0.7) $ — Commodity contracts: Amount of gain/(loss) reclassified from AOCI into income $ (1.0) $ — $ (1.3) $ — $ 2.3 $ — Interest rate contracts: Amount of gain/(loss) reclassified from AOCI into income $ — $ — $ — $ 2.6 $ — $ 1.9 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. Effective January 1, 2019, as a result of the adoption of ASU 2017-12, the Company elected to re-designate the CCS as a net investment hedge under the spot method. Changes in the fair value of the CCS included in the assessment of effectiveness due to spot foreign exchange rates are recorded as cumulative translation adjustment within AOCI and will remain in AOCI until either the sale or substantially complete liquidation of the hedged subsidiaries. The initial value of any component excluded from the assessment of effectiveness is recognized in income using a systematic and rational method over the remaining life of the hedging instrument. The excluded component is the cross-currency basis spread, which will be recognized as an increase in interest income within "Other (income) expense — net" in the Consolidated Statements of Operations using the straight-line method over the remaining term of the CCS. Any difference between the change in the fair value of the excluded component and amounts recognized in income under that systematic and rational method is recognized in AOCI. In addition, the accrual of periodic U.S. dollar and Euro-denominated interest receipts under the terms of the CCS are recognized as interest income within "Other (income) expense — net" in the Consolidated Statements of Operations. The location and effects of the net investment hedge on the Consolidated Statements of Comprehensive Income and Consolidated Statements of Operations are as follows: 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) Years Ended December 31, Location Years Ended December 31, Location Years Ended December 31, 2020 2019 2018 2020 2019 2018 2020 2019 2018 Interest rate swap contract $ (0.8) $ 2.8 $ 3.9 N/A $ — $ — $ — Other (income) expense — net $ 0.3 $ 1.6 $ — 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. During the first quarter of 2018, the Company entered into a short-term foreign currency exchange contract to purchase SEK 1,800.0 million and sell $223.8 million with maturity dates ranging from March 1, 2018 to April 5, 2018 ("SEK Contract"). The purpose of this contract was to mitigate the impact of currency price fluctuations on the contracted price of the Crem Acquisition (see Note 3, "Acquisition," for additional discussion of the Crem Acquisition). In April 2018, the Company settled the SEK Contract and realized a loss of $10.0 million, all of which was recognized during 2018 in "Other (income) expense — net" in the Consolidated Statements of Operations. The cash flows related to the settlement of the SEK Contract were not related to the Company's ongoing revenue-producing or cost-generating activities and, therefore, were included within the investing activities in the Consolidated Statements of Cash Flows. The Company had the following outstanding commodity and currency forward contracts that were not designated as hedging instruments: Commodity Contracted Units Unit As of December 31, 2020 2019 2018 Aluminum 35 524 — MT Copper 18 269 — MT Steel — 1,778 — Short tons Currency Contracted Units (in millions) As of December 31, 2020 2019 2018 Canadian Dollar 1.1 1.3 — Euro 84.2 75.6 69.7 Swiss Franc 7.0 7.0 5.3 British Pound 1.0 20.3 23.7 Singapore Dollar 0.3 28.4 28.4 Mexican Peso 13.8 11.8 — 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) Location of gain/(loss) (in millions) Years Ended December 31, 2020 2019 2018 Foreign currency exchange contracts $ (2.6) $ 6.6 $ (9.7) Other (income) expense — net Commodity contracts (0.2) 0.1 — Other (income) expense — net Total $ (2.8) $ 6.7 $ (9.7) 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 Fair Value As of December 31, 2020 2019 Derivatives designated as hedging instruments: Foreign currency exchange contracts Prepaids and other current assets $ 1.1 $ 0.8 Total derivatives designated as hedging instruments $ 1.1 $ 0.8 Derivatives NOT designated as hedging instruments: Foreign currency exchange contracts Prepaids and other current assets $ 0.9 $ 0.4 Total derivatives NOT designated as hedging instruments $ 0.9 $ 0.4 Total asset derivatives $ 2.0 $ 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 Fair Value As of December 31, 2020 2019 Derivatives designated as hedging instruments: Foreign currency exchange contracts Accrued expenses and other liabilities $ 0.2 $ 0.6 Interest rate swap contracts Accrued expenses and other liabilities — 3.2 Total derivatives designated as hedging instruments $ 0.2 $ 3.8 Derivatives NOT designated as hedging instruments: Foreign currency exchange contracts Accrued expenses and other liabilities $ 0.4 $ 0.6 Commodity contracts Accrued expenses and other liabilities — 0.6 Total derivatives NOT designated as hedging instruments $ 0.4 $ 1.2 Total liability derivatives $ 0.6 $ 5.0 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Financial Instruments, Owned, at Fair Value [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 Disclosures About Fair Value of Financial Instruments The Company utilizes the best available information in measuring fair value. The carrying values of cash, restricted cash and cash equivalents, accounts receivable and trade accounts payable approximate fair value, without being discounted, as of December 31, 2020 and 2019, due to the short-term nature of these instruments. The Company's Revolving Credit Facility Term Loan B Facility and Senior Notes are recorded at their carrying values on the Company's Consolidated Balance Sheets, as disclosed in Note 10, "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 of the fair value hierarchy. The fair value of the Company's Term Loan B Facility was approximately $814.9 million and $860.9 million as of December 31, 2020 and 2019, respectively. The fair value of the Company's Senior Notes was approximately $439.9 million and $450.9 million as of December 31, 2020 and 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 as of December 31, 2020 and 2019 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 as of December 31, 2020 Level 1 Level 2 Level 3 Total Current assets: Foreign currency exchange contracts $ — $ 2.0 $ — $ 2.0 Total current assets at fair value — 2.0 — 2.0 Total assets at fair value $ — $ 2.0 $ — $ 2.0 Current liabilities: Foreign currency exchange contracts $ — $ 0.6 $ — $ 0.6 Total current liabilities at fair value — 0.6 — 0.6 Total liabilities at fair value $ — $ 0.6 $ — $ 0.6 (in millions) Fair Value as of 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 7, "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 year ended December 31, 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 assumptions for the impairment charge recorded during the year ended December 31, 2020: Long Term Growth Rate 2.0% Discount Rate 12.0% Pre-Tax Royalty Rate 1.50% - 2.25% |
Contingencies and Significant E
Contingencies and Significant Estimates | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Significant Estimates | Contingencies and Significant Estimates Product-Related and Environmental Matters As of December 31, 2020 and 2019, the Company had reserved $39.9 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 14, "Product Warranties," for further information. As of December 31, 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 $1.7 million and $1.3 million as December 31, 2020 and 2019, respectively, consisting of $0.9 million and $0.7 million, respectively, reserved for specific cases and $0.8 million and $0.6 million, respectively, reserved using actuarial methods and anticipated to have occurred but are not yet reported as of December 31, 2020 and 2019. 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 December 31, 2020 and 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 December 31, 2020 and 2019 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 continued analysis and testing of relevant records of import activity, a potential range of loss was both probable and reasonably estimable. As no amount within the range of loss was more likely than any other, the Company recorded a $3.1 million charge as of March 31, 2020, representing the low end of the range of potential loss. The Company continued its analysis and testing of import activity and relevant records through 2020 and updated the range of loss to reflect the current status of the analysis and testing results as of each of the quarters ended June 30 and September 30, 2020. As of December 31, 2020, the Company has concluded the analysis and testing of import activity and finalized the amount due to the CBP as $3.1 million. This charge is included as a component of "Restructuring and other expense" in the Consolidated Statements of Operations for year ended December 31, 2020. In mid-February 2021, the Company submitted the completed analysis to CBP and remitted the aforementioned amount due. Significant judgment was required in determining the amounts due to the CBP and although the Company believes its estimate to be reasonable, no assurance can be given that the final outcome of this matter will be consistent with what has been recorded and remitted by the Company. To the extent that the final outcome of this matter is different than the amounts recorded, such differences will be recorded in the period in which such determination is made. |
Product Warranties
Product Warranties | 12 Months Ended |
Dec. 31, 2020 | |
Guarantees [Abstract] | |
Product Warranties | Product WarrantiesIn 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 product warranty liability activity is as follows: (in millions) As of December 31, 2020 2019 Balance at the beginning of the period $ 43.9 $ 39.7 Additions for issuance of warranties 27.7 42.4 Settlements (in cash or in kind) (32.2) (38.5) Currency translation impact 0.5 0.3 Balance at the end of the period (1) $ 39.9 $ 43.9 (1) Long-term product warranty liabilities are included in "Other long-term liabilities" and totaled $10.0 million and $10.6 million at December 31, 2020 and 2019, respectively. The Company also sells extended warranties, which are recorded as deferred revenue and are amortized to "Net sales" on a straight-line basis over the extended warranty period. The short-term portion of deferred revenue on extended warranties, included in "Accrued expenses and other liabilities" in the Consolidated Balance Sheets at December 31, 2020 and 2019, was $1.9 million and $1.8 million, respectively. The long-term portion of deferred revenue on warranties included in "Other long-term liabilities" in the Consolidated Balance Sheets as of December 31, 2020 and 2019 was $3.5 million and $3.8 million, respectively. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company maintains several retirement plans for certain employees in each of its geographic business segments. The Company has established a Retirement Plan Committee to manage the operations and administration of all retirement plans and related trusts. The details of these retirement plans are included below. Defined 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 and are generally closed to new participants. The funded and unfunded positions of the Company's Defined Benefit Plans are recorded in the Consolidated Balance Sheets and the related income and expenses are recorded in the Consolidated Statements of Operations. Actuarial gains and losses that have not yet been recognized in income are recorded in AOCI until such amounts are amortized as a component of the net periodic benefit cost. The determination of the benefit obligations and the recognition of expenses related to each of the Defined Benefit Plans are dependent on various assumptions. The most significant assumptions are the discount rates and long-term expected rates of return on each of the plan's assets. Management develops each assumption using relevant Company experience in conjunction with market-related data for each individual country in which the plans exist. There have been no changes made to the valuation techniques and inputs used to measure the fair values of the Defined Benefit Plans assets and liabilities from the prior year. The components of periodic benefit costs for the Company's Defined Benefit Plans are as follows: (in millions, except percentage data) Pension Plans Postretirement Health Years Ended December 31, Years Ended December 31, 2020 2019 2018 2020 2019 2018 Service cost - benefits earned during the year $ 0.1 $ 0.1 $ 0.1 $ — $ — $ — Interest cost of projected benefit obligation 3.8 5.2 5.2 0.2 0.2 0.3 Expected return on assets (4.1) (4.7) (5.8) — — — Amortization of prior service cost — — — (0.2) (0.2) — Amortization of actuarial net loss 2.4 2.5 2.2 0.7 0.3 0.2 Settlement loss recognized — 1.2 2.4 — — — Net periodic benefit cost $ 2.2 $ 4.3 $ 4.1 $ 0.7 $ 0.3 $ 0.5 Weighted average assumptions: Discount rate 2.4 % 3.3 % 2.8 % 2.6 % 3.8 % 3.2 % Expected return on plan assets 2.5 % 3.1 % 3.2 % N/A N/A N/A Rate of compensation increase 1.8 % 2.0 % 2.0 % 3.0 % 3.0 % 1.5 % Gains and losses in excess of 10% of the greater of the benefit obligation and the market-related value of assets are amortized over the average remaining service period of active participants. To develop the expected long-term rate of return on assets assumptions, the Company considers the historical returns and future expectations for returns in each asset class, as well as targeted asset allocation percentages within the asset portfolios. During the first quarter of 2019, the Company took various actions to settle a portion of its pension obligations in the United Kingdom. These actions resulted in a reduction in accrued pension obligations of approximately $5.5 million and a non-cash loss of approximately $1.2 million for the accelerated recognition of unamortized losses, which is included in "Other (income) expense — net" in the Consolidated Statements of Operations for the year ended December 31, 2019. In October 2018, the Company completed the purchase of a group annuity contract using assets from a U.S.-based pension plan. Under the U.S.-based pension plan, accrued pension obligations of $7.9 million for certain participants receiving payments from the plan were transferred to an insurer. This transaction was an irrevocable action that unconditionally transferred the legal obligation to provide these payments to the insurer, as well as the risks attributable to the obligation. As a result, the Company recorded a non-cash settlement loss of $2.4 million, related to the accelerated recognition of unamortized losses, which is included in "Other (income) expense — net" in the Consolidated Statements of Operations for the year ended December 31, 2018. The following is a reconciliation of the changes in benefit obligation, the changes in plan assets and the funded status of the Company's Defined Benefit Plans: (in millions, except percentage data) Pension Plans Postretirement Health As of December 31, As of December 31, 2020 2019 2020 2019 Change in Benefit Obligations: Benefit obligation, beginning of year $ 193.4 $ 186.5 $ 7.6 $ 7.3 Service cost 0.1 0.1 — — Interest cost 3.8 5.2 0.2 0.2 Participant contributions — — 0.3 0.3 Plan curtailments (0.2) — — — Plan settlements (0.4) (5.5) — — Plan amendments — — — (0.1) Actuarial loss 18.7 12.7 0.5 2.0 Currency translation adjustment 4.7 5.0 — — Benefits paid (12.9) (10.6) (1.0) (2.1) Benefit obligation, end of year $ 207.2 $ 193.4 $ 7.6 $ 7.6 Change in Plan Assets: Fair value of plan assets, beginning of year $ 166.3 $ 152.6 $ — $ — Actual return on plan assets 18.0 16.5 — — Employer contributions 9.3 8.3 0.7 1.8 Participant contributions — — 0.3 0.3 Plan settlements (0.4) (5.5) — — Currency translation adjustment 4.5 5.0 — — Benefits paid (12.9) (10.6) (1.0) (2.1) Fair value of plan assets, end of year $ 184.8 $ 166.3 $ — $ — Unfunded status (1) $ (22.4) $ (27.1) $ (7.6) $ (7.6) Weighted-Average Assumptions: Discount rate 1.6 % 2.4 % 2.0 % 2.6 % Rate of compensation increase N/A 1.8 % 3.0 % 3.0 % (1) As of both December 31, 2020 and 2019, the short-term portion of the Company's Pension Plans obligation totaled $0.9 million. The short-term portion of the Company's Postretirement Health and Other Plans obligation totaled $1.2 million, as of both December 31, 2020 and 2019. These short-term obligations are included in "Accrued expenses and other liabilities" in the Consolidated Balance Sheets. The primary driver of the actuarial loss in the Company's Pension Plans in both of the years ended December 31, 2020 and 2019 within the change in benefit obligation is a result of a decrease in the discount rate assumption. The primary driver of the actuarial gain in the year ended December 31, 2018 within the change in the benefit obligation is a result of an increase in the discount rate assumption partially offset by the increase in inflation rate assumption and updated census data. Amounts recognized in AOCI consist of the following: (in millions) Pension Plans Postretirement As of December 31, As of December 31, 2020 2019 2020 2019 Net actuarial loss $ (43.0) $ (40.0) $ (4.0) $ (4.2) Prior service credit 0.6 0.6 1.2 1.5 Total amount recognized $ (42.4) $ (39.4) $ (2.8) $ (2.7) Assumed health care cost trend rates have a significant effect on the amounts reported for the Company's Postretirement Health and Other Plans. For measurement purposes, a 5.5% annual rate of increase in the per capita cost of covered health care benefits was assumed for the year ended December 31, 2020. The rate was assumed to decrease gradually to 4.5% for 2038 and remain at that level thereafter. The following table summarizes the sensitivity of the Company's retirement obligations as of December 31, 2020 for retirement benefit costs of the Defined Benefit Plans and the impact of changes to key assumptions used to determine those results (in millions): Change in assumption: Estimated increase Estimated increase Estimated increase Estimated increase 0.5% increase in discount rate $ (0.5) $ (12.3) $ — $ (0.2) 0.5% decrease in discount rate $ 0.4 $ 14.0 $ — $ 0.2 0.5% increase in long-term return on assets $ (0.9) N/A N/A N/A 0.5% decrease in long-term return on assets $ 0.9 N/A N/A N/A The weighted-average asset allocations of the Pension Plans asset portfolios by category are as follows: As of December 31, 2020 2019 Equity 11.1 % 17.8 % Debt securities 46.4 % 33.4 % Other 42.5 % 48.8 % Investment Strategy The overall objective of the Company's Pension Plans asset portfolios is to earn a rate of return over time to satisfy the benefit obligations of the Pension Plans and to maintain sufficient liquidity to pay benefits and address other cash requirements of the Pension Plans. Specific investment objectives for the Company's long-term investment strategy include reducing the volatility of pension assets relative to pension liabilities, achieving a competitive total investment return, achieving diversification between and within asset classes and managing other risks. Investment objectives for each asset class are determined based on specific risks and investment opportunities identified. The Company reviews its long-term, strategic asset allocations annually. The Company uses various analytics to determine the optimal asset mix and considers plan liability characteristics, liquidity characteristics, funding requirements, expected rates of return and the distribution of returns. The Company identifies investment benchmarks for the asset classes in the strategic asset allocation that are market-based and viable where possible. Actual allocations to each asset class vary from target allocations due to periodic investment strategy changes, market value fluctuations, the length of time it takes to fully implement investment allocation positions and the timing of benefit payments and contributions. The asset allocation is monitored and rebalanced on a monthly basis. The actual allocations for the Pension Plans asset portfolios and target allocations by asset class as of December 31, 2020, are as follows: Target Allocations Weighted Average Asset Allocations Equity securities 12.3 % 11.1 % Debt securities 48.0 % 46.4 % Other 39.7 % 42.5 % Risk Management In managing the Pension Plans portfolio of plan assets, the Company reviews and manages risk associated with funded status risk, interest rate risk, market risk, counterparty risk, liquidity risk and operational risk. Liability management and asset class diversification are central to the Company's risk management approach and are integral to the overall investment strategy. Further, asset classes are constructed to achieve diversification by investment strategy, by investment manager, by industry or sector and by holding. Investment manager guidelines for publicly traded assets are specified and are monitored regularly. Fair Value Measurements The following tables present the Company's Pension Plans asset portfolios using the three levels of the fair value hierarchy which are based on the reliability of the inputs used to determine fair value. Level 1 refers to fair values determined based on quoted prices in active markets for identical assets. Level 2 refers to fair values estimated using significant other observable inputs, and Level 3 includes fair values estimated using significant non-observable inputs. The fair values are as follows: Assets (in millions) As of December 31, 2020 Quoted Prices in Significant Other Unobservable Total Cash and cash equivalents $ 0.7 $ — $ — $ 0.7 Insurance group annuity contracts — — 73.8 73.8 Common/collective trust funds — Government, corporate and other non-government debt — 85.9 — 85.9 Common/collective trust funds — Corporate equity — 20.4 — 20.4 Common/collective trust funds — Customized strategy — 4.0 — 4.0 Total $ 0.7 $ 110.3 $ 73.8 $ 184.8 Assets (in millions) As of December 31, 2019 Quoted Prices in Significant Other Unobservable Total Cash and cash equivalents $ 1.0 $ — $ — $ 1.0 Insurance group annuity contracts — — 69.0 69.0 Common/collective trust funds — Government, corporate and other non-government debt — 55.5 — 55.5 Common/collective trust funds — Corporate equity — 29.5 — 29.5 Common/collective trust funds — Customized strategy — 11.3 — 11.3 Total $ 1.0 $ 96.3 $ 69.0 $ 166.3 Cash equivalents and other short-term investments, which are used to pay benefits, are primarily held in registered money market funds and are valued using a market approach based on the quoted market prices of identical instruments. Other cash equivalent and short-term investments are valued daily using a market approach with inputs that include quoted market prices for similar instruments. Insurance group annuity contracts are valued at the present value of the future benefit payments owed by the insurance company to the plans’ participants. Common/collective trust funds are valued at their net asset values calculated by the investment manager or sponsor of the fund and have daily or monthly liquidity. A reconciliation of the fair value measurements of the Pensions Plans portfolio of assets using significant unobservable inputs (Level 3) from the beginning of the year to the end of the year is as follows: (in millions) Insurance Contracts 2020 2019 Beginning Balance $ 69.0 $ 65.6 Contributions 0.1 0.1 Plan settlements (0.4) — Actual return on assets 7.3 5.1 Benefit payments (4.5) (4.4) Foreign currency impact 2.3 2.6 Ending Balance $ 73.8 $ 69.0 The minimum contribution for the year ending December 31, 2021 for the Pension Plans is $9.0 million with no planned discretionary or non-cash contributions. The expected Company paid claims for the Postretirement Health and Other Plans are $0.1 million for the year ending December 31, 2021. Projected benefit payments from the Defined Benefit Plans as of December 31, 2020 are estimated as follows: (in millions) Pension Plans Postretirement Year ending December 31: 2021 $ 11.1 $ 1.2 2022 11.1 1.2 2023 11.1 1.0 2024 11.0 0.9 2025 10.9 0.6 2026-2030 50.6 1.7 Total $ 105.8 $ 6.6 The fair value of the Pension Plans' portfolio of assets for which the accumulated benefit obligation is in excess of the assets is as follows: (in millions) Pension Plans As of December 31, 2020 2019 Projected benefit obligation $ 207.2 $ 193.4 Accumulated benefit obligation $ 207.2 $ 193.4 Fair value of plan assets $ 184.8 $ 166.3 The measurement date for the Defined Benefit Plans is December 31, 2020. The Company, through its former Lincoln Foodservice operation, participated in a multiemployer defined benefit plan under a collective bargaining agreement that covered certain of its union-represented employees. During the year ended December 31, 2013, in conjunction with the finalization of the reorganization and plant restructuring of the Lincoln Foodservice operation, the Company was deemed to have effectively withdrawn its participation in the multiemployer defined benefit plan. This withdrawal obligation is included as a component of the restructuring liability in the Consolidated Balance Sheets as described in Note 16, "Business Transformation Program and Restructuring." At inception of the withdrawal, the obligation totaled $17.5 million, of which $8.6 million and $9.9 million were outstanding as of December 31, 2020 and 2019, respectively. The remaining withdrawal obligation is payable in quarterly installments of principal and accrued interest totaling $0.5 million through April 2026. As the Company was deemed to have effectively withdrawn its participation in this plan during the year ended December 31, 2013, no further contributions have been made to the plan since that date. Defined Contribution Plans The Company maintains and sponsors three defined contribution retirement plans for its eligible employees and retirees: (1) the Welbilt 401(k) Retirement Plan; (2) the Welbilt Retirement Savings Plan and (3) the Welbilt Deferred Compensation Plan, each of which is further discussed below. Welbilt 401(k) Retirement Plan The Welbilt 401(k) Retirement Plan is a tax-qualified retirement plan available to substantially all non-union U.S. employees of the Company. Welbilt Retirement Savings Plan The Welbilt Retirement Savings Plan is a tax-qualified retirement plan available to certain collectively bargained U.S. employees of Welbilt, its subsidiaries and related entities. For both the Welbilt 401(k) Retirement Plan and the Welbilt Retirement Savings Plan, the Company's portion of total expenses incurred for these plans was $1.6 million, $4.4 million, and $4.0 million for the years ended December 31, 2020, 2019 and 2018, respectively. In March 2020, the Welbilt 401(k) Retirement Plan was amended to remove the safe harbor matching employer contributions, and effective April 2020, the Company suspended the matching contributions to participant accounts. In January 2021, the Company reinstated the matching contributions to participant accounts at the pre-suspension levels prior to April 2020. Welbilt Deferred Compensation Plan |
Business Transformation Program
Business Transformation Program and Restructuring | 12 Months Ended |
Dec. 31, 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 both years ended December 31, 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: December 31, (in millions) 2020 2019 Transformation Program expense: Cost of sales $ 2.0 $ 2.0 Selling, general and administrative expenses 21.3 33.3 Total $ 23.3 $ 35.3 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 Plans 2018 and Previous Plans Workforce reductions Workforce reductions Other Workforce reductions Pension withdrawal obligation Total Restructuring liability as of December 31, 2018 $ — $ — $ — $ 2.0 $ 11.1 $ 13.1 Restructuring activities — 9.6 0.4 (0.2) — 9.8 Cash payments — (3.8) — (1.6) (1.2) (6.6) Non-cash adjustments (1) — (1.0) (0.4) — — (1.4) Restructuring liability as of December 31, 2019 — 4.8 — 0.2 9.9 14.9 Restructuring activities 5.6 1.2 1.4 — — 8.2 Cash payments (3.1) (5.8) — (0.2) (1.3) (10.4) Non-cash adjustments (1) (0.1) — (1.4) — — (1.5) Restructuring liability as of December 31, 2020 $ 2.4 $ 0.2 $ — $ — $ 8.6 $ 11.2 (1) Non-cash adjustments primarily consist of stock-based compensation resulting from the accelerated vesting of certain stock awards, inventory write-downs and accelerated depreciation. As of December 31, 2020 and 2019, the current portion of the restructuring liability was $4.0 million and $6.3 million, respectively, and was included in "Accrued expenses and other liabilities" in the Consolidated Balance Sheets. As of December 31, 2020 and 2019, the long-term portion of the restructuring liability was $7.2 million and $8.6 million, respectively, and was included in "Other long-term liabilities" in the Consolidated Balance Sheets. As of both December 31, 2020 and 2019, the long-term portion of the restructuring liability is primarily related to 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 withdrawal obligation is scheduled to have been satisfied. See Note 15, "Employee Benefit Plans," for further discussion of the pension withdrawal obligation. The Company's restructuring expense by segment is as follows: (in millions) December 31, 2020 2019 2018 Americas $ 2.3 $ 3.4 $ 2.3 EMEA 2.4 2.6 1.7 APAC 2.2 0.6 0.5 Corporate 1.3 3.2 1.5 Total restructuring activities $ 8.2 $ 9.8 $ 6.0 The Company's restructuring expense is reported in the Consolidated Statements of Operations as follows: (in millions) December 31, 2020 2019 2018 Cost of sales $ 0.4 $ 0.4 $ — Restructuring and other expense 7.8 9.4 6.0 Total restructuring activities $ 8.2 $ 9.8 $ 6.0 2018 Restructuring Activities In the first half of 2018, the Company completed a limited management restructuring within its EMEA region and a workforce reduction within its EMEA and APAC regions. In connection with these actions, the Company incurred severance and related costs of $0.6 million and $1.4 million, respectively, which are included in "Restructuring and other expense" in the Consolidated Statements of Operations for the year ended December 31, 2018. During the third quarter of 2018, the Company’s former President and Chief Executive Officer ("Former CEO"), separated from the Company. In connection with the Former CEO's separation, the Company incurred separation charges of $0.8 million, which are included in "Restructuring and other expense" for the year ended December 31, 2018. In addition, $3.7 million of expenses were reversed from the forfeiture of unvested stock awards and accrued incentive compensation, which were included in "Selling, general and administrative expenses" in the Consolidated Statements of Operations for the year ended December 31, 2018. During the third quarter of 2018, the Company also completed a RIF in its Americas region and a limited management restructuring within its corporate division and incurred severance and related costs of $3.0 million, including $0.3 million of additional stock-based compensation resulting from the accelerated vesting of certain stock compensation awards, which is included in "Restructuring and other expense" in the Consolidated Statements of Operations for the year ended December 31, 2018. 2019 Restructuring Activities During the first and second quarters of 2019, the Company recognized $4.2 million and $1.2 million, respectively, totaling $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" in the Company's Consolidated Statements of Operations for the year ended December 31, 2019. 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-downs and $0.2 million of accelerated depreciation included in "Cost of sales" and $0.2 million of severance and related costs, which are included in "Restructuring and other expense" in the Company's Consolidated Statements of Operations for the year ended December 31, 2019. During the fourth quarter of 2019, the Company approved restructuring actions in the Americas and APAC regions in conjunction with the Transformation Program and a restructuring action to reduce overhead in the EMEA region. As a result of these actions, the Company recorded $4.1 million of severance and related costs, consisting of $1.1 million in the Americas, $2.5 million in EMEA and $0.5 million in APAC, which are included in "Restructuring and other expense" in the Consolidated Statements of Operations for the year ended December 31, 2019. Because the restructuring actions were not fully completed at the end of 2019, the Company also incurred severance and related costs of $0.8 million in the APAC region and $0.4 million in the EMEA region and $1.0 million of accelerated depreciation in the APAC region, each of which are included in "Restructuring and other expense" for the year ended December 31, 2020. The Company also recognized $0.4 million of inventory write-down in the APAC region which is included in "Cost of sales" for the year ended December 31, 2020. 2020 Restructuring Activities Beginning in the first quarter of 2020, the Company continued to initiate restructuring actions intended to reduce operating expenses resulting from improved efficiencies gained from the execution of the Transformation Program. During the year ended December 31, 2020, the Company recognized $3.6 million of severance and related costs resulting from workforce reductions in the Americas region and Corporate as well as limited management restructurings. For the year ended December 31, 2020, these severance and related costs, consisting of $2.3 million in the Americas region and $1.3 million in the Corporate division, are included in "Restructuring and other expense" 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. During the fourth quarter of 2020, the Company completed a workforce reduction in the EMEA region in an effort to improve the Company's cost structure and optimize operational efficiency. In connection with this action the Company recognized $2.0 million of severance and related costs which are included in "Restructuring and other expense" f or the year ended December 31, 2020. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Comprehensive income 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) As of 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 $ 19.1 $ (4.3) Derivative instrument fair market value, net of income tax expense of $1.1 million and $0.8 million, respectively — (1.6) Employee pension and postretirement benefit adjustments, net of income tax benefit of $6.6 million and $6.5 million, respectively (38.6) (35.6) Total accumulated other comprehensive loss $ (19.5) $ (41.5) The summary of changes in AOCI for the years ended December 31, 2020, 2019 and 2018 are as follows: (in millions) Foreign Currency Translation Adjustments (1) Gains and Losses on Cash Flow Hedges Pension & Postretirement Total Balance as of December 31, 2017 $ 4.4 $ 3.6 $ (40.0) $ (32.0) Other comprehensive (loss) income before reclassifications (10.2) 0.2 (0.5) (10.5) Reclassifications — (3.5) 4.8 1.3 Tax effect of reclassifications (0.7) 0.5 (0.2) (0.4) Net current period other comprehensive (loss) income (10.9) (2.8) 4.1 (9.6) Balance as of December 31, 2018 (6.5) 0.8 (35.9) (41.6) Other comprehensive income (loss) before reclassifications 2.7 (2.5) (3.7) (3.5) Reclassifications — (0.4) 3.8 3.4 Tax effect of reclassifications (0.5) 0.5 0.2 0.2 Net current period other comprehensive income (loss) 2.2 (2.4) 0.3 0.1 Balance as of December 31, 2019 (4.3) (1.6) (35.6) (41.5) Other comprehensive income (loss) before reclassifications 23.6 0.5 (6.0) 18.1 Reclassifications — 1.4 2.9 4.3 Tax effect of reclassifications (0.2) (0.3) 0.1 (0.4) Net current period other comprehensive income (loss) 23.4 1.6 (3.0) 22.0 Balance as of December 31, 2020 $ 19.1 $ — $ (38.6) $ (19.5) (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) Years Ended December 31, Location in Consolidated Statements of Operations 2020 2019 2018 (Losses) gains on cash flow hedges: Foreign currency exchange contracts $ (0.4) $ (0.9) $ (0.7) Cost of sales Commodity contracts (1.0) (1.3) 2.3 Cost of sales Interest expense — 2.6 1.9 Interest expense (Losses) gains on cash flow hedges, before tax (1.4) 0.4 3.5 Tax effect 0.3 0.1 (0.8) Income taxes (Losses) gains on cash flow hedges, net of tax $ (1.1) $ 0.5 $ 2.7 Amortization of pension and postretirement items: Amortization of prior service cost $ 0.2 $ 0.2 $ — Other (income) expense — net Actuarial losses (3.1) (2.8) (2.4) Other (income) expense — net Pension settlement — (1.2) (2.4) Other (income) expense — net Amortization of pension and postretirement items, before tax (2.9) (3.8) (4.8) Tax effect 0.7 0.4 0.8 Income tax (benefit) expense Amortization of pension and postretirement items, net of tax $ (2.2) $ (3.4) $ (4.0) Total reclassifications, net of tax $ (3.3) $ (2.9) $ (1.3) |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases The Company enters into contracts to lease real estate, manufacturing and office equipment and vehicles. Operating leases result in a straight-line lease expense, while the accounting for finance leases results in a front-loaded expense pattern. The Company’s most significant leases are for real estate and have remaining contract lease terms ranging from less than one The Company does not have any contracts where it is the lessor, does not sublease any of its leased assets to third-parties and is not party to any lease contracts with related parties. The Company’s lease agreements do not contain any residual value guarantees or restrictive covenants. As a lessee, the Company periodically reassesses and remeasures its leases based on certain triggering events or conditions, including whether a contract is or contains a lease, assessment of lease term and purchase options, measurement of lease payments, assessment of lease classification and discount rate. No impairment indicators were identified as of or during the year ended December 31, 2020. As discussed in Note 2, "Basis of Presentation and Summary of Significant Accounting Policies," effective January 1, 2019, the Company adopted the provisions of Accounting Standards Update ("ASU") ASU 2016-02, "Leases (Topic 842)", and changed its policy for lease accounting prospectively for lease agreements entered into or reassessed from the date of the adoption. The components of the Company's lease expense are as follows: Years Ended December 31, (in millions) 2020 2019 Operating lease expense $ 14.9 $ 15.9 Finance lease expense: Depreciation of assets 1.2 1.2 Interest on lease liabilities 0.1 0.1 Short-term lease expense 2.4 2.8 Variable lease expense 0.5 1.0 Total lease expense $ 19.1 $ 21.0 The supplemental balance sheet information for the Company's leases is as follows: As of December 31, (in millions, except lease term and discount rate) 2020 2019 Operating leases: Operating lease right-of-use assets $ 47.5 $ 39.9 Current operating lease liabilities $ 9.7 $ 10.0 Non-current operating lease liabilities 37.7 29.1 Total operating lease liabilities $ 47.4 $ 39.1 Finance leases: Property, plant and equipment, at cost $ 5.4 $ 6.2 Accumulated depreciation (2.8) (3.5) Total finance leases - property and equipment — net $ 2.6 $ 2.7 Current obligations of finance leases $ 1.0 $ 1.2 Non-current finance lease liabilities 1.2 1.3 Total finance lease liabilities $ 2.2 $ 2.5 Weighted average remaining lease term (in years): Operating leases 6.8 7.1 Finance leases 2.8 2.3 Weighted average discount rate: Operating leases 7.1 % 7.6 % Finance leases 4.8 % 4.8 % The assets associated with operating leases are included in "Operating lease right-of-use assets" with the current and non-current liabilities included in "Accrued expenses and other liabilities" and "Operating lease liabilities," respectively, in the Company's Consolidated Balance Sheets. The assets associated with finance leases are included in "Property, plant and equipment — net" with the current and non-current liabilities recognized in "Current portion of long-term debt and finance leases" and "Long-term debt and finance leases," respectively, in the Company's Consolidated Balance Sheets. The supplemental cash flow information for the Company's leases is as follows: Years Ended December 31, (in millions) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used in operating leases $ 14.2 $ 14.6 Operating cash flows used in financing leases $ 0.1 $ 0.1 Financing cash flows used in financing leases $ 1.3 $ 1.2 Right-of-use assets obtained in exchange for lease obligations: Operating Leases $ 19.8 $ 14.1 Finance Leases $ 0.9 $ 0.8 The following table presents the future maturities of the Company's lease liabilities as of December 31, 2020: (in millions) Operating Financing Year ending December 31: 2021 $ 12.4 $ 1.0 2022 10.0 0.8 2023 8.3 0.3 2024 6.9 0.1 2025 5.2 0.1 Thereafter 18.7 — Total lease payments 61.5 2.3 Less: imputed interest (14.1) (0.1) Total lease obligations $ 47.4 $ 2.2 |
Leases | Leases The Company enters into contracts to lease real estate, manufacturing and office equipment and vehicles. Operating leases result in a straight-line lease expense, while the accounting for finance leases results in a front-loaded expense pattern. The Company’s most significant leases are for real estate and have remaining contract lease terms ranging from less than one The Company does not have any contracts where it is the lessor, does not sublease any of its leased assets to third-parties and is not party to any lease contracts with related parties. The Company’s lease agreements do not contain any residual value guarantees or restrictive covenants. As a lessee, the Company periodically reassesses and remeasures its leases based on certain triggering events or conditions, including whether a contract is or contains a lease, assessment of lease term and purchase options, measurement of lease payments, assessment of lease classification and discount rate. No impairment indicators were identified as of or during the year ended December 31, 2020. As discussed in Note 2, "Basis of Presentation and Summary of Significant Accounting Policies," effective January 1, 2019, the Company adopted the provisions of Accounting Standards Update ("ASU") ASU 2016-02, "Leases (Topic 842)", and changed its policy for lease accounting prospectively for lease agreements entered into or reassessed from the date of the adoption. The components of the Company's lease expense are as follows: Years Ended December 31, (in millions) 2020 2019 Operating lease expense $ 14.9 $ 15.9 Finance lease expense: Depreciation of assets 1.2 1.2 Interest on lease liabilities 0.1 0.1 Short-term lease expense 2.4 2.8 Variable lease expense 0.5 1.0 Total lease expense $ 19.1 $ 21.0 The supplemental balance sheet information for the Company's leases is as follows: As of December 31, (in millions, except lease term and discount rate) 2020 2019 Operating leases: Operating lease right-of-use assets $ 47.5 $ 39.9 Current operating lease liabilities $ 9.7 $ 10.0 Non-current operating lease liabilities 37.7 29.1 Total operating lease liabilities $ 47.4 $ 39.1 Finance leases: Property, plant and equipment, at cost $ 5.4 $ 6.2 Accumulated depreciation (2.8) (3.5) Total finance leases - property and equipment — net $ 2.6 $ 2.7 Current obligations of finance leases $ 1.0 $ 1.2 Non-current finance lease liabilities 1.2 1.3 Total finance lease liabilities $ 2.2 $ 2.5 Weighted average remaining lease term (in years): Operating leases 6.8 7.1 Finance leases 2.8 2.3 Weighted average discount rate: Operating leases 7.1 % 7.6 % Finance leases 4.8 % 4.8 % The assets associated with operating leases are included in "Operating lease right-of-use assets" with the current and non-current liabilities included in "Accrued expenses and other liabilities" and "Operating lease liabilities," respectively, in the Company's Consolidated Balance Sheets. The assets associated with finance leases are included in "Property, plant and equipment — net" with the current and non-current liabilities recognized in "Current portion of long-term debt and finance leases" and "Long-term debt and finance leases," respectively, in the Company's Consolidated Balance Sheets. The supplemental cash flow information for the Company's leases is as follows: Years Ended December 31, (in millions) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used in operating leases $ 14.2 $ 14.6 Operating cash flows used in financing leases $ 0.1 $ 0.1 Financing cash flows used in financing leases $ 1.3 $ 1.2 Right-of-use assets obtained in exchange for lease obligations: Operating Leases $ 19.8 $ 14.1 Finance Leases $ 0.9 $ 0.8 The following table presents the future maturities of the Company's lease liabilities as of December 31, 2020: (in millions) Operating Financing Year ending December 31: 2021 $ 12.4 $ 1.0 2022 10.0 0.8 2023 8.3 0.3 2024 6.9 0.1 2025 5.2 0.1 Thereafter 18.7 — Total lease payments 61.5 2.3 Less: imputed interest (14.1) (0.1) Total lease obligations $ 47.4 $ 2.2 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company's 2016 Plan authorizes the Company to grant officers, employees and non-employee members of the Company's Board of Directors stock options awards, restricted stock awards and units, performance share awards and units, and other types of stock-based and cash awards. All awards are recorded at the fair market value of the Company's common stock on the date of grant. In addition, the 2016 Plan provides for an adjustment and replacement of certain awards of MTW common stock that were outstanding immediately prior to the Spin-Off through the issuance of replacement awards from the Company. As of December 31, 2020, the maximum number of shares of common stock available for issuance pursuant to the 2016 Plan was 7.8 million. The Company's stock-based compensation expense is included in the following financial statement line items: (in millions) Years Ended December 31, 2020 (1) 2019 2018 Stock-based compensation expense: Selling, general and administrative expenses $ 5.1 $ 6.4 $ 6.7 Restructuring and other expense (0.4) 0.9 0.3 Total stock-based compensation expense $ 4.7 $ 7.3 $ 7.0 (1) Stock-based compensation expense for the year ended December 31, 2020 is inclusive of a $1.2 million and $0.3 million of contra-expense included in "Selling, general and administrative expenses" and "Restructuring and other expense", respectively, which is representative of an adjustment to the expected achievement percentage of the Company's 2019 tranche of performance share units from 100% to 0%. Stock-based compensation expense included in "Restructuring and other expense" in the Consolidated Statements of Operations is the result of the accelerated vesting of certain equity awards in connection with various restructuring events and adjustments to expected achievement percentages of performance share units for employees impacted by restructuring actions. These events are described in Note 16, "Business Transformation Program and Restructuring." Stock-based compensation expense by award type is as follows: (in millions) Years Ended December 31, 2020 2019 2018 Stock-based compensation expense: Stock options $ 1.8 $ 1.5 $ 1.5 Restricted stock awards and units 4.0 3.8 3.0 Performance share units (1.1) 2.0 2.5 Total stock-based compensation expense $ 4.7 $ 7.3 $ 7.0 Stock Options Stock option awards to officers and employees become exercisable in 25% increments annually over a four-year period beginning on the first anniversary of the grant date and expire ten years from the date of grant. A summary of the Company's stock option activity for the year ended December 31, 2020 is as follows: (in millions, except weighted average exercise price and contractual life) Options Weighted Weighted Average Remaining Contractual Life (Years) Aggregate Options outstanding as of January 1, 2020 2.0 $ 15.82 5.4 $ 2.1 Granted 0.6 $ 13.99 Exercised (0.2) $ 9.20 Forfeited (0.1) $ 14.64 Canceled (0.2) $ 14.35 Options outstanding as of December 31, 2020 (1) 2.1 $ 15.85 6.2 $ — Options vested or expected to vest as of December 31, 2020 (2) 2.1 $ 15.88 6.1 $ — Options exercisable as of December 31, 2020 1.2 $ 16.66 4.2 $ — (1) The outstanding stock options as of December 31, 2020 have exercise prices ranging from $6.91 to $23.14 per share. (2) The number of options expected to vest is total unvested options less estimated forfeitures. The Company uses the Black-Scholes valuation model to value stock options. The volatility assumptions are based on a weighting of a peer group of publicly-traded companies and the Company's life-to-date historical volatility since the Spin-off. The risk-free rates are based on ten-year U.S. Treasury rates in effect at the time of the stock grant. The expected stock option life represents the period of time that the stock options granted are expected to be outstanding and is based on historical experience. The assumptions used in the Black-Scholes option pricing model and the weighted average fair value of option awards granted are as follows: Years Ended December 31, 2020 2019 2018 Expected life (years) 6.0 6.0 6.0 Risk-free interest rate 1.3 % 2.5 % 2.7 % Expected volatility 31.9 % 31.0 % 29.0 % Expected dividend yield — % — % — % The following represents stock option compensation information: (in millions, except weighted average grant date fair value per option granted) Years Ended December 31, 2020 2019 2018 Weighted average grant date fair value $ 4.66 $ 5.27 $ 6.84 Fair value of options vested $ 1.6 $ 1.5 $ 1.7 Intrinsic value of options exercised $ 0.7 $ 2.8 $ 3.3 Excess tax benefit for tax deductions related to the exercise of stock options $ 0.1 $ 0.9 $ 0.8 Cash received from option exercises, net of tax withholding $ 0.9 $ 2.5 $ 5.1 Tax benefits for stock-option compensation expense $ 0.4 $ 0.3 $ 0.4 As of December 31, 2020, the Company had $2.8 million of unrecognized compensation expense before tax related to stock options, which is expected to be recognized over a weighted average period of 2.5 years. Restricted Stock Awards and Units Beginning in 2019, restricted stock granted to employees generally cliff vest after three years or vest equally over three years beginning on the first anniversary from the date of grant. For awards granted in 2018 and 2017, restricted stock granted to employees generally vests equally over three years beginning on the first anniversary from the date of grant. Restricted stock granted to the Company's directors, generally cliff vests after one year from the date of grant for awards made during the years ended December 31, 2019 and 2018 and two years from the date of grant for awards made during the year ended December 31, 2017. Restricted stock awards made to the chairperson of the Board of Directors vest immediately. The Company's restricted stock activity for the year ended December 31, 2020 is as follows: (in millions, except weighted average grant date fair value) Restricted Stock Weighted Average Grant Date Fair Value Unvested as of January 1, 2020 0.4 $ 15.88 Granted 0.6 $ 10.36 Vested (0.1) $ 15.16 Forfeited (0.1) $ 15.16 Unvested as of December 31, 2020 0.8 $ 11.41 The Company's restricted stock expense is as follows: (in millions, except weighted average grant date fair value per award granted) Years Ended December 31, 2020 2019 2018 Weighted average grant date fair value $ 10.36 $ 15.29 $ 18.15 Fair value of awards vested $ 1.3 $ 5.4 $ 8.1 Tax benefits for restricted stock compensation expense $ 0.7 $ 0.7 $ 0.7 As of December 31, 2020, the Company had $5.1 million of unrecognized compensation expense before tax related to restricted stock, which is expected to be recognized over a weighted average period of 2.0 years. Performance Share Units The Company's performance share units ("PSUs") cliff vest after three years. The number of PSUs 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 the award agreement, and may range from zero to 200% of the target shares granted. The PSUs are settled in shares of the Company's common stock, with holders receiving one share of common stock for each PSU that vests. Compensation expense for PSUs is recognized over the vesting period when it is probable the performance criteria will be achieved. As of December 31, 2020, the following PSU programs were ongoing: Award Date PSUs Outstanding (in millions) Expected Vesting Threshold 2019 Program 0.2 — % 2020 Program 0.2 162 % Total PSUs outstanding 0.4 A summary of activity for the Company's PSUs for the year ended December 31, 2020 is as follows: (in millions, except weighted average grant date fair value) Performance Share Units Weighted Unvested as of January 1, 2020 0.4 $ 17.45 Granted 0.3 $ 13.94 Vested (1) (0.1) $ 20.25 Forfeited (0.1) $ 14.90 Unvested as of December 31, 2020 0.5 $ 14.53 (1) The vested PSUs are based on the target amount of the award for the 2018 Program. In accordance with the terms of the underlying award agreements, the actual shares earned and distributed for the three-year performance period ended December 31, 2020 was 7.5% of the target shares granted, rounded up the nearest whole share. The following represents PSU information for the periods indicated: (in millions, except weighted average grant date fair value per award granted) Years Ended December 31, 2020 2019 2018 Weighted average grant date fair value $ 13.94 $ 15.11 $ 20.25 Fair value of awards vested $ 0.2 $ 2.0 $ 2.6 Tax (expenses) benefits for PSU compensation expense $ (0.3) $ 0.5 $ 0.6 As of December 31, 2020, the Company had $3.2 million of unrecognized compensation expense before tax related to PSUs, which is expected to be recognized over a weighted average period of 2.0 years. |
Other (Income) Expense _ Net
Other (Income) Expense — Net | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Other (Income) Expense — Net | Other (Income) Expense — Net The components of "Other (income) expense — net" in the Consolidated Statements of Operations are summarized as follows: (in millions) Years Ended December 31, 2020 2019 2018 Pension and post-retirement expense $ 2.8 $ 4.6 $ 4.6 Foreign currency transaction (gains) losses (1) (5.7) 0.7 20.1 Amortization of debt issuance costs (2) — — — Other (1.7) (4.4) (0.4) Other (income) expense — net $ (4.6) $ 0.9 $ 24.3 (1) Included in foreign currency transaction losses for the year ended December 31, 2018, is a $10.0 million loss on the foreign currency hedge for the acquisition price of Crem. Refer to Note 3, "Acquisition," for additional discussion. (2) Amortization of debt issuance costs of $5.2 million for the year ended December 31, 2020 is included as a component of "Interest expense" in the Company's Consolidated Statements of Operations. Amortization of debt issuance costs previously included as a component of "Other (income) expense — net" totaling $4.7 million and $5.5 million for the years ended December 31, 2019 and 2018, respectively, have also been reclassified to include as a component of "Interest expense" in the Company's Consolidated Statements of Operations. |
(Loss) Earnings Per Share
(Loss) Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
(Loss) Earnings Per Share | (Loss) Earnings Per Share The Company presents (loss) earnings per share on a basic and diluted basis. Basic (loss) earnings per share is computed by dividing net earnings 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 criterion has been met. 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 year ended December 31, 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 December 31, 2020, potentially issuable shares of common stock consisted of the following: Potential issuable shares of common stock: Stock options 2,136,827 Unvested restricted stock units 808,363 Unvested performance share units (1) 648,590 Total potential shares of common stock 3,593,780 (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 issuable shares of common stock. The components of weighted average basic and diluted shares outstanding are as follows: (in millions, except share and per share data) Years Ended December 31, 2020 2019 2018 Net (loss) earnings $ (7.4) $ 55.9 $ 78.2 Weighted average shares outstanding — Basic 141,491,326 140,953,496 140,023,635 Effect of dilutive securities: Stock options — 224,860 585,270 Unvested restricted stock units — 245,416 437,720 Unvested performance share units — 144,013 342,160 Effect of dilutive securities — 614,289 1,365,150 Weighted average shares outstanding — Diluted 141,491,326 141,567,785 141,388,785 (Loss) earnings per share — Basic $ (0.05) $ 0.40 $ 0.56 (Loss) earnings per share — Diluted $ (0.05) $ 0.39 $ 0.55 For the years ended December 31, 2019 and 2018 there were 1.2 million, and 0.6 million securities, respectively, excluded from the computation of diluted earnings per share because their effect 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. The Company did not declare or pay dividends to its stockholders during the years ended December 31, 2020, 2019 and 2018. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 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, separation expense, 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 "(Loss) earnings 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) Years Ended December 31, 2020 2019 2018 Net sales: Americas $ 867.0 $ 1,208.4 $ 1,228.4 EMEA 292.6 392.7 385.1 APAC 202.1 252.3 229.1 Elimination of intersegment sales (208.3) (259.5) (252.5) Total net sales $ 1,153.4 $ 1,593.9 $ 1,590.1 Segment Adjusted Operating EBITDA: Americas $ 155.5 $ 237.6 $ 246.4 EMEA 46.2 70.6 78.0 APAC 31.2 40.7 30.9 Total Segment Adjusted Operating EBITDA 232.9 348.9 355.3 Corporate and unallocated expenses (62.0) (62.7) (65.1) Depreciation expense (20.7) (21.1) (18.0) Amortization expense (40.6) (39.8) (37.0) Transaction costs (1) (0.2) (1.1) (7.1) Other items (2) (3.2) (4.5) (5.6) Transformation Program expense (3) (23.3) (35.3) — Separation expense — — (0.1) Restructuring activities (4) (8.2) (9.8) (6.0) (Loss) gain from impairment and disposal of assets — net (11.6) (0.7) 0.4 Earnings from operations 63.1 173.9 216.8 Interest expense (81.4) (97.3) (94.5) Loss on modification or extinguishment of debt — — (9.0) Other income (expense) — net 4.6 (0.9) (24.3) (Loss) earnings before income taxes $ (13.7) $ 75.7 $ 89.0 (1) Transaction costs are associated with acquisition and integrated-related activities. Transaction costs recorded in "Cost of sales" include $0.1 million and $1.9 million related to inventory fair value purchase accounting adjustments for the years ended December 31, 2019 and 2018, respectively. Professional services and other direct acquisition and integration costs recorded in "Selling, general and administrative expenses" were $0.2 million, $1.0 million, and $5.2 million for the years ended December 31, 2020, 2019, and 2018, respectively. (2) Other items are costs which are not representative of the Company's operational performance. For the year ended December 31, 2020, other items includes an expense of $3.1 million for amounts due for customs duties, fees and interest on previously imported products, which are included in "Restructuring and other expenses" in the Consolidated Statements of Operations and $0.1 million of professional fees for recovery of misappropriated funds within the Crem business related to the 2018 matter. Refer to Note 13, "Contingencies and Significant Estimates" for discussion of the impact on the Consolidated Statements of Operations. For the year ended December 31, 2019, the amount includes certain costs related to concluded litigation and other professional fees. For the year ended December 31, 2018, these costs include a $3.7 million loss on misappropriation of funds within the Crem business, $1.3 million related to the costs associated with the restatement of previously issued consolidated financial statements in the Company's Form 10-K/A for the year ended December 31, 2017 and $0.6 million of other professional fees. Unless otherwise noted, all such amounts are included within "Selling, general and administrative expenses" in the Consolidated Statements of Operations. (3) Transformation Program expense includes consulting and other costs associated with executing the Company's Transformation Program initiatives. Refer to Note 16, "Business Transformation Program and Restructuring," for discussion of the impact on the Consolidated Statements of Operations. (4) Restructuring activities include costs associated with actions to improve operating efficiencies and rationalization of the Company's cost structure. Refer to Note 16, "Business Transformation Program and Restructuring," for discussion of the impact on the Consolidated Statements of Operations. Adjusted Operating EBITDA % by segment (5) : Americas 17.9 % 19.7 % 20.1 % EMEA 15.8 % 18.0 % 20.3 % APAC 15.4 % 16.1 % 13.5 % (5) Adjusted Operating EBITDA % is calculated by dividing Adjusted Operating EBITDA by net sales for each respective segment. (in millions) Years Ended December 31, 2020 2019 2018 Third-party net sales by geographic area (6) : United States $ 725.0 $ 991.8 $ 995.0 Other Americas 60.4 97.8 112.0 EMEA 217.5 308.9 300.7 APAC 150.5 195.4 182.4 Total net sales by geographic area $ 1,153.4 $ 1,593.9 $ 1,590.1 (6) Net sales presented in this table are attributed to geographic regions based on location of customer. Capital expenditures: Americas $ 14.5 $ 24.3 $ 13.7 EMEA 1.5 2.9 1.8 APAC 1.6 2.6 3.0 Corporate 2.5 4.1 2.9 Total capital expenditures $ 20.1 $ 33.9 $ 21.4 Depreciation: Americas $ 11.5 $ 14.1 $ 12.1 EMEA 3.1 3.2 3.0 APAC 3.4 2.7 2.4 Corporate 3.6 1.3 0.5 Total depreciation $ 21.6 $ 21.3 $ 18.0 (in millions) As of December 31, 2020 2019 Property, plant and equipment — net by geographic area: United States $ 79.0 $ 78.8 Other Americas 24.9 21.6 EMEA 11.3 12.1 APAC 13.9 15.0 Total property, plant and equipment $ 129.1 $ 127.5 Assets by geographic business segment: Americas $ 1,488.0 $ 1,533.9 EMEA 347.6 349.8 APAC 209.0 211.8 Corporate 97.0 69.8 Total assets $ 2,141.6 $ 2,165.3 Net sales by product class and geographic business segment are as follows: (in millions) Year Ended December 31, 2020 Commercial Foodservice Equipment Aftermarket Parts and Support Total Americas $ 656.1 $ 118.5 $ 774.6 EMEA 180.0 43.5 223.5 APAC 130.2 25.1 155.3 Total net sales $ 966.3 $ 187.1 $ 1,153.4 (in millions) Year Ended December 31, 2019 Commercial Foodservice Equipment Aftermarket Parts and Support Total Americas $ 896.3 $ 179.0 $ 1,075.3 EMEA 265.2 48.0 313.2 APAC 174.3 31.1 205.4 Total net sales $ 1,335.8 $ 258.1 $ 1,593.9 (in millions) Year Ended December 31, 2018 Commercial Foodservice Equipment Aftermarket Parts and Support Total Americas $ 907.0 $ 183.9 $ 1,090.9 EMEA 258.8 48.6 307.4 APAC 163.2 28.6 191.8 Total net sales $ 1,329.0 $ 261.1 $ 1,590.1 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) The following table presents financial data for each of the quarters for the years ended December 31, 2020 and 2019: (in millions, except per share data) 2020 (1) First Second Third Fourth Net sales $ 328.9 $ 206.0 $ 298.5 $ 320.0 Gross profit $ 114.8 $ 68.4 $ 105.3 $ 121.5 Earnings from operations $ 0.6 $ 0.7 $ 21.2 $ 40.6 Net (loss) earnings $ (15.1) $ (17.4) $ 4.9 $ 20.2 Per share data: (Loss) earnings per share — Basic $ (0.11) $ (0.12) $ 0.03 $ 0.14 (Loss) earnings per share — Diluted $ (0.11) $ (0.12) $ 0.03 $ 0.14 (1) In March 2020, the World Health Organization declared the outbreak of COVID-19 as a pandemic, which continues to spread throughout the United States and the world. The pandemic, along with the measures implemented by governmental authorities and other third-parties in response, has caused disruption in commercial foodservice equipment markets across the geographies in which the Company operates. The COVID-19 pandemic has decreased demand for commercial foodservice equipment and aftermarket parts and the related economic disruption has negatively impacted the Company's results of operations during each quarter of 2020. (in millions, except per share data) 2019 First (1) Second Third Fourth Net sales $ 375.3 $ 426.3 $ 410.5 $ 381.8 Gross profit $ 126.5 $ 156.3 $ 150.9 $ 133.2 Earnings from operations $ 24.5 $ 57.2 $ 54.8 $ 37.4 Net (loss) earnings $ (2.6) $ 20.0 $ 20.1 $ 18.4 Per share data: (Loss) earnings per share — Basic $ (0.02) $ 0.14 $ 0.14 $ 0.13 (Loss) earnings per share — Diluted $ (0.02) $ 0.14 $ 0.14 $ 0.13 (1) The Company's net loss in the first quarter of 2019 is primarily the result of increased professional fees, consisting primarily of third-party consulting costs incurred in connection with the operational review performed prior to the execution of the Company's Transformation Program launch in May 2019 and increased restructuring expense resulting from the global workforce reduction and limited executive management restructuring action completed during the quarter. Refer to Note 16, "Business Transformation Program and Restructuring," for further information. |
Subsidiary Guarantors of Senior
Subsidiary Guarantors of Senior Notes | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Subsidiary Guarantors of 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 22, "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 For the year ended December 31, 2020 (in millions) Parent Guarantor Non- Consolidating Adjustments Consolidated Net sales $ — $ 796.5 $ 702.8 $ (345.9) $ 1,153.4 Cost of sales — 618.0 471.3 (345.9) 743.4 Gross profit — 178.5 231.5 — 410.0 Selling, general and administrative expenses 63.2 109.7 112.4 — 285.3 Amortization expense — 28.3 10.8 — 39.1 Restructuring and other expense 1.3 4.8 4.8 — 10.9 Loss from impairment and disposal of assets — net — 0.4 11.2 — 11.6 (Loss) earnings from operations (64.5) 35.3 92.3 — 63.1 Interest expense 79.9 0.7 0.8 — 81.4 Other (income) expense — net (18.7) (17.4) 31.5 — (4.6) Equity in earnings of subsidiaries 84.9 46.9 — (131.8) — (Loss) earnings before income taxes (40.8) 98.9 60.0 (131.8) (13.7) Income tax (benefit) expense (33.4) 14.0 13.1 — (6.3) Net (loss) earnings $ (7.4) $ 84.9 $ 46.9 $ (131.8) $ (7.4) Total other comprehensive income, net of tax 21.9 522.0 521.0 (1,042.9) 22.0 Comprehensive income $ 14.5 $ 606.9 $ 567.9 $ (1,174.7) $ 14.6 WELBILT, INC. Consolidating Statement of Operations For the year ended December 31, 2019 (in millions) Parent Guarantor Non- Consolidating Adjustments Consolidated Net sales $ — $ 1,104.8 $ 951.2 $ (462.1) $ 1,593.9 Cost of sales 3.6 838.8 646.7 (462.1) 1,027.0 Gross profit (3.6) 266.0 304.5 — 566.9 Selling, general and administrative expenses 85.0 137.6 121.6 — 344.2 Amortization expense — 28.5 10.2 — 38.7 Restructuring expense 2.6 2.7 4.1 — 9.4 Loss from impairment or disposal of assets - net 0.1 0.3 0.3 — 0.7 (Loss) earnings from operations (91.3) 96.9 168.3 — 173.9 Interest expense 92.8 0.9 3.6 — 97.3 Other (income) expense — net (18.9) (26.7) 46.5 — 0.9 Equity in earnings of subsidiaries 189.3 88.1 — (277.4) — Earnings before income taxes 24.1 210.8 118.2 (277.4) 75.7 Income tax (benefit) expense (31.8) 21.5 30.1 — 19.8 Net earnings $ 55.9 $ 189.3 $ 88.1 $ (277.4) $ 55.9 Total other comprehensive income (loss), net of tax 0.1 (26.4) (23.5) 49.9 0.1 Comprehensive income $ 56.0 $ 162.9 $ 64.6 $ (227.5) $ 56.0 WELBILT, INC. Consolidating Statement of Operations For the year ended December 31, 2018 (in millions) Parent Guarantor Non- Consolidating Adjustments Consolidated Net sales $ — $ 1,110.8 $ 937.8 $ (458.5) $ 1,590.1 Cost of sales 21.2 836.8 621.4 (458.5) 1,020.9 Gross profit (21.2) 274.0 316.4 — 569.2 Selling, general and administrative expenses 49.9 129.1 130.8 — 309.8 Amortization expense — 28.5 8.5 — 37.0 Restructuring expense 1.6 1.2 3.2 — 6.0 (Gain) loss from disposal of assets — net — (0.5) 0.1 — (0.4) (Loss) earnings from operations (72.7) 115.7 173.8 — 216.8 Interest expense 86.1 1.0 7.4 — 94.5 Loss on modification or extinguishment of debt 9.0 — — — 9.0 Other (income) expense — net (12.3) (29.6) 66.2 — 24.3 Equity in earnings of subsidiaries 203.7 71.2 — (274.9) — Earnings before income taxes 48.2 215.5 100.2 (274.9) 89.0 Income tax (benefit) expense (30.0) 11.8 29.0 — 10.8 Net earnings $ 78.2 $ 203.7 $ 71.2 $ (274.9) $ 78.2 Total other comprehensive loss, net of tax (9.6) (19.5) (23.3) 42.8 (9.6) Comprehensive income $ 68.6 $ 184.2 $ 47.9 $ (232.1) $ 68.6 WELBILT, INC. Consolidating Balance Sheet As of December 31, 2020 (in millions) Parent Guarantor Non- Consolidating Adjustments Consolidated Assets Current assets: Cash and cash equivalents $ 8.6 $ — $ 116.6 $ (0.2) $ 125.0 Restricted cash — — 0.4 — 0.4 Accounts receivable — net 0.4 72.0 93.5 — 165.9 Inventories — net — 83.4 97.2 — 180.6 Prepaids and other current assets 24.2 2.5 23.4 — 50.1 Total current assets 33.2 157.9 331.1 (0.2) 522.0 Property, plant and equipment — net 14.2 70.6 44.3 — 129.1 Operating lease right-of-use assets 2.2 3.9 41.4 — 47.5 Goodwill — 832.4 110.5 — 942.9 Other intangible assets — net 0.2 315.6 153.8 — 469.6 Intercompany long-term notes receivable — 5.8 9.9 (15.7) — Due from affiliates — 3,509.9 — (3,509.9) — Investment in subsidiaries 4,485.8 — — (4,485.8) — Other non-current assets 8.3 4.4 17.8 — 30.5 Total assets $ 4,543.9 $ 4,900.5 $ 708.8 $ (8,011.6) $ 2,141.6 Liabilities and equity Current liabilities: Trade accounts payable $ — $ 44.0 $ 42.5 $ (0.1) $ 86.4 Accrued expenses and other liabilities 33.6 66.1 64.5 — 164.2 Current portion of long-term debt and finance leases — 0.4 0.6 — 1.0 Product warranties — 19.7 10.2 — 29.9 Total current liabilities 33.6 130.2 117.8 (0.1) 281.5 Long-term debt and finance leases 1,406.7 0.3 0.8 — 1,407.8 Deferred income taxes 43.4 — 33.1 — 76.5 Pension and postretirement health liabilities 12.9 10.2 4.7 — 27.8 Intercompany long-term notes payable 15.7 — — (15.7) — Due to affiliates 2,743.0 — 766.9 (3,509.9) — Investment in subsidiaries — 254.2 — (254.2) — Operating lease liabilities 2.1 2.3 33.3 — 37.7 Other long-term liabilities 13.4 17.5 6.4 — 37.3 Total non-current liabilities 4,237.2 284.5 845.2 (3,779.8) 1,587.1 Total equity (deficit): Total equity (deficit) 273.1 4,485.8 (254.2) (4,231.7) 273.0 Total liabilities and equity $ 4,543.9 $ 4,900.5 $ 708.8 $ (8,011.6) $ 2,141.6 WELBILT, INC. Consolidating Balance Sheet As of December 31, 2019 (in millions) 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 7.0 20.5 6.3 (0.1) 33.7 Total non-current liabilities 4,148.3 334.0 856.5 (3,758.2) 1,580.6 Total equity (deficit) 253.3 4,400.9 (300.9) (4,099.9) 253.4 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 For the year ended December 31, 2020 (in millions) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash flows from operating activities Net cash (used in) provided by operating activities $ (74.6) $ 77.9 $ 11.9 $ (0.2) $ 15.0 Cash flows from investing activities Capital expenditures (2.6) (9.4) (8.1) — (20.1) Acquisition of intangible assets — (0.2) — — (0.2) Other (3.9) — — — (3.9) Intercompany investment — (68.3) 20.5 47.8 — Net cash (used in) provided by investing activities (6.5) (77.9) 12.4 47.8 (24.2) Cash flows from financing activities Proceeds from long-term debt 196.5 — 22.6 — 219.1 Repayments on long-term debt and finance leases (163.6) (0.7) (54.4) — (218.7) Debt issuance costs (2.1) — — — (2.1) Exercises of stock options 1.2 — — — 1.2 Payments on tax withholdings for equity awards (0.8) — — — (0.8) Intercompany financing 47.8 — — (47.8) — Net cash provided by (used in) financing activities 79.0 (0.7) (31.8) (47.8) (1.3) Effect of exchange rate changes on cash — — 5.2 — 5.2 Net decrease in cash and cash equivalents and restricted cash (2.1) (0.7) (2.3) (0.2) (5.3) Balance at beginning of period 10.7 0.7 119.3 — 130.7 Balance at end of period $ 8.6 $ — $ 117.0 $ (0.2) $ 125.4 WELBILT, INC. Consolidating Statement of Cash Flows For the year ended December 31, 2019 (in millions) Parent Guarantor Non- Consolidating Adjustments Consolidated Cash flows from operating activities Net cash used in operating activities $ (158.3) $ (11.2) $ (100.2) $ — $ (269.7) Cash flows from investing activities Cash receipts on beneficial interest in sold receivables — 75.8 204.9 — 280.7 Capital expenditures (4.2) (20.5) (9.2) — (33.9) Proceeds from maturity of short-term investment — — 32.0 — 32.0 Other 1.1 — — — 1.1 Intercompany investment — (42.2) (23.4) 65.6 — Net cash (used in) provided by investing activities (3.1) 13.1 204.3 65.6 279.9 Cash flows from financing activities Proceeds from long-term debt 410.0 — — — 410.0 Repayments on long-term debt and finance leases (304.5) (0.9) (43.0) — (348.4) Repayment of short-term borrowings — — (15.0) — (15.0) Payment of contingent consideration — (0.8) — — (0.8) Exercises of stock options 3.2 — — — 3.2 Payments on tax withholdings for equity awards (2.4) — — — (2.4) Intercompany financing 65.6 — — (65.6) — Net cash provided by (used in) financing activities 171.9 (1.7) (58.0) (65.6) 46.6 Effect of exchange rate changes on cash — — 0.7 — 0.7 Net increase in cash and cash equivalents and restricted cash 10.5 0.2 46.8 — 57.5 Balance at beginning of period 0.2 0.5 72.5 — 73.2 Balance at end of period $ 10.7 $ 0.7 $ 119.3 $ — $ 130.7 WELBILT, INC. Consolidating Statement of Cash Flows For the year ended December 31, 2018 (in millions) Parent Guarantor Non- Consolidating Adjustments Consolidated Cash flows from operating activities Net cash (used in) provided by operating activities $ (163.5) $ 161.8 $ (447.6) $ 0.8 $ (448.5) Cash flows from investing activities Cash receipts on beneficial interest in sold receivables — — 576.4 — 576.4 Capital expenditures (2.9) (11.1) (7.4) — (21.4) Acquisition of intangible assets — (2.8) — — (2.8) Business acquisition, net of cash acquired — — (215.6) — (215.6) Proceeds from maturity of short-term investment — — 20.7 — 20.7 Purchase of short-term investment — — (35.0) — (35.0) Settlement of foreign exchange contract — — (10.0) — (10.0) Other 1.2 — — — 1.2 Intercompany investment — (145.6) 4.9 140.7 — Net cash (used in) provided by investing activities (1.7) (159.5) 334.0 140.7 313.5 Cash flows from financing activities Proceeds from long-term debt 300.5 — 175.0 — 475.5 Repayments on long-term debt and finance leases (281.0) (0.4) (101.8) — (383.2) Proceeds from short-term borrowings — — 30.0 — 30.0 Repayment of short-term borrowings — — (15.0) — (15.0) Debt issuance costs (6.8) — — — (6.8) Payment of contingent consideration — (1.4) — — (1.4) Exercises of stock options 6.2 — — — 6.2 Payments on tax withholdings for equity awards (3.0) — — — (3.0) Intercompany financing 140.7 — — (140.7) — Net cash provided by (used in) financing activities 156.6 (1.8) 88.2 (140.7) 102.3 Effect of exchange rate changes on cash — — (2.9) — (2.9) Net (decrease) increase in cash and cash equivalents and restricted cash (8.6) 0.5 (28.3) 0.8 (35.6) Balance at beginning of period 8.8 — 100.8 (0.8) 108.8 Balance at end of period $ 0.2 $ 0.5 $ 72.5 $ — $ 73.2 |
Schedule II_ Valuation and Qual
Schedule II: Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II: Valuation and Qualifying Accounts | Schedule II: Valuation and Qualifying Accounts For the years ended December 31, 2020, 2019 and 2018 (in millions) Balance at beginning of period Charges to (Utilization of) increases to reserve (1) Other (2) Balance at end of period Year ended December 31, 2018 Allowance for doubtful accounts $ 4.0 0.6 (0.6) (0.1) $ 3.9 Deferred tax valuation allowance $ 41.0 (0.2) — (0.1) $ 40.7 Year ended December 31, 2019 Allowance for doubtful accounts $ 3.9 (0.1) — 0.2 $ 4.0 Deferred tax valuation allowance $ 40.7 (1.6) (10.8) — $ 28.3 Year ended December 31, 2020 Allowance for doubtful accounts $ 4.0 0.9 (0.3) (0.2) $ 4.4 Deferred tax valuation allowance $ 28.3 (0.9) 2.9 0.6 $ 30.9 (1) For the year ended December 31, 2020, the utilization of the deferred tax valuation allowance represents increases in deferred tax assets primarily associated with loss carryforwards in certain jurisdictions. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of PresentationThe accompanying consolidated financial statements include the accounts of Welbilt and its wholly-owned subsidiaries and have been prepared by the Company, pursuant to the rules and regulations of the U.S Securities and Exchange Commission. 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, warranty costs, product liability costs, employee benefit programs, sales rebates 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 March 2020, the World Health Organization declared the outbreak of a disease caused by a novel strain of the coronavirus ("COVID-19") to be a pandemic. This pandemic has created and may continue to create significant uncertainty in the macroeconomic environment which, in addition to other unforeseen effects of this pandemic, may adversely impact the Company's future operating results. As a result, many of the Company's estimates and assumptions may require increased judgment and involve a higher degree of variability and volatility. As the impacts of the pandemic continue to evolve and additional information becomes available, these estimates may change materially in future periods. 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 for the years ended December 31, 2020, 2019 and 2018, the financial position as of December 31, 2020 and 2019 and the cash flows for the years ended December 31, 2020, 2019 and 2018, and except as otherwise discussed herein, such adjustments consist only of those of a normal recurring nature. All dollar amounts, except share and per share amounts, are in millions of dollars unless otherwise indicated. |
Cash and Cash Equivalents | Cash and Cash Equivalents All short-term investments purchased with an original maturity of three months or less are considered cash equivalents. The Company's policy is to classify operating demand deposit accounts with high credit quality financial institutions, the balances of which at times may exceed federally insured limits. |
Restricted Cash | Restricted Cash Cash and cash equivalents that are restricted as to withdrawal or use under the terms of certain contractual agreements, such as letters of credit or bank guarantees, are recorded separately on the Consolidated Balance Sheets. |
Short-Term Investments | Short-Term Investments The Company considers all investments purchased with an original maturity of more than three months but not greater than one year to be short-term investments. During 2019, the Company held a certificate of deposit with an original scheduled maturity of 12 months, for which the Company had the intent and ability to hold until maturity and was classified as held-to-maturity and carried at amortized cost in the Consolidated Balance Sheets. There were no indicators of other-than-temporary impairment for this security and the Company did not experience any credit losses during any period prior to the June 2019 maturity date of the certificate of deposit. |
Accounts Receivable | Accounts Receivable Accounts receivable consist primarily of trade receivables due from customers, consisting of distributors, dealers, buying groups and manufacturers' representatives, and are stated net of allowance for amounts that may become uncollectible in the future. The Company's estimate for the allowance for doubtful accounts related to trade receivables includes an evaluation of specific accounts where it has information that the customer may have an inability to meet its financial obligations together with a general provision for unknown but existing doubtful accounts based on historical experience, which are subject to change if experience improves or deteriorates. Accounts receivable are written off once the account is significantly past due and the Company's collection efforts are unsuccessful. Transactions under the Company's accounts receivable securitization program, which was terminated in March 2019, were accounted for as sales. In addition, the Company maintained a "beneficial interest," or right to collect cash, in the sold receivables. Cash receipts from the third-party purchasing financial institution at the time of the sale are classified as operating cash while cash receipts from the beneficial interest on sold receivables are classified as investing activities on the Consolidated Statements of Cash Flows for the years ended December 31, 2019 and 2018. The Company deems the interest rate risk related to the deferred purchase price notes to be de minimis, primarily due to the short average collection cycle of the related receivables (i.e., less than 60 days). See Note 4, "Accounts Receivable Securitization," for further details. |
Inventories | Inventories Inventories are valued at the lower of cost or net realizable value. Approximately 90.2% and 91.7% of the Company's inventories were valued using the first-in, first-out ("FIFO") method as of December 31, 2020 and 2019, respectively. The remaining inventories were valued using the last-in, first-out ("LIFO") method. If the FIFO inventory valuation method had been used exclusively, inventories would have increased by $4.3 million and $4.2 million as of December 31, 2020 and 2019, respectively. Finished goods and work-in-process inventories include material, labor and manufacturing overhead costs. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost. Expenditures for maintenance, repairs and minor renewals are charged against earnings as incurred. Expenditures for major renewals and improvements that substantially extend the capacity or useful life of an asset are capitalized and are then depreciated. The Company capitalizes certain internal and external costs incurred to acquire or develop software for internal use. Costs incurred during the preliminary project stage and the post-implementation stage are expensed as incurred. All direct costs incurred to develop internal-use software during the development stage are capitalized. The cost and accumulated depreciation for property, plant and equipment sold, retired, or otherwise disposed of are relieved from the accounts, and resulting gains or losses are reflected in earnings. Property, plant and equipment are depreciated over the estimated useful lives or lease periods of the assets using the straight-line depreciation method for financial reporting and on accelerated methods for income tax purposes. Depreciation for internally developed software commences when the software is available for its intended use. The useful lives are estimated based on historical experience with similar assets, taking into account anticipated technological or other changes. The Company periodically reviews these lives relative to physical factors, economic factors and industry trends. If there are changes in the planned use of property or equipment or if technological changes were to occur more rapidly than anticipated, the useful lives assigned to these assets may need to be shortened, resulting in the recognition of accelerated depreciation expense in future periods. Property, plant and equipment are primarily depreciated over the following estimated useful lives: Years Building and improvements 2 — 40 Machinery, equipment and tooling 2 — 20 Furniture and fixtures 3 — 15 Computer hardware and software for internal use 2 — 10 |
Leases | Leases Effective January 1, 2019, the Company adopted the provisions of Accounting Standards Update ("ASU") ASU 2016-02, "Leases (Topic 842)" including subsequent amendments issued thereafter (collectively, "ASC Topic 842"), which requires lessees to recognize a right-of-use asset and corresponding lease liability on the balance sheet for operating leases while the accounting for finance leases remains substantially unchanged. Under ASC Topic 842, a lease is a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment (i.e., an identified asset) for a period of time in exchange for consideration. The Company determines if an arrangement is a lease at inception. For a contract to be determined to be a lease or contain a lease, it must include explicitly or implicitly identified assets where the Company has the right to substantially all of the economic benefits of the assets and has the ability to direct how and for what purpose the assets are used during the lease term. Leases are classified as either operating or financing. For operating leases, the Company recognizes a lease liability equal to the present value of the remaining lease payments, and a right-of-use asset equal to the lease liability, subject to certain adjustments, such as prepaid rents. The right-of-use asset represents the right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. The Company uses its incremental borrowing rate to determine the present value of the lease payments. The Company’s incremental borrowing rate is the rate of interest that it would have to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. The Company determines the incremental borrowing rates for its leases by applying its applicable borrowing rate, with adjustment, as appropriate, for instruments with similar characteristics. The lease term at the lease commencement date is determined based on the non-cancellable period for which the Company has the right to use the underlying asset, together with any periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option, periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option and periods covered by an option to extend (or not to terminate) the lease in which the exercise of the option is controlled by the lessor. The Company considers a number of factors when evaluating whether the options in its lease contracts are reasonably certain of exercise, such as length of time before an option exercise, expected value of the leased asset at the end of the initial lease term, importance of the lease to the Company's operations, costs to negotiate a new lease and any contractual or economic penalties. |
Business Combinations | Business Combinations The Company allocates the fair value of purchase consideration to the assets acquired and liabilities assumed based on their fair values at the acquisition date. The excess of the fair value of purchase consideration over the fair value of these assets acquired and liabilities assumed is recorded as goodwill. When determining the fair values of assets acquired and liabilities assumed, management makes significant estimates and assumptions, especially with respect to intangible assets. Critical estimates in valuing intangible assets include, but are not limited to, expected future cash flows, which includes consideration of future growth rates and margins, customer attrition rates, future changes in technology and brand awareness, loyalty and position, and discount rates. Fair value estimates are based on the assumptions that management believes a market participant would use in pricing the asset or liability. Amounts recorded in a business combination may change during the measurement period, which is a period not to exceed one year from the date of acquisition, as additional information about conditions existing at the acquisition date becomes available. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill and indefinite lived intangibles are not amortized, but are tested for impairment annually, or more frequently, as events dictate. 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 Company's other intangible assets with finite lives are subject to amortization and are tested for impairment whenever events or changes in circumstances indicate that their carrying values may not be recoverable. For additional discussion of impairment testing related to long-lived assets, refer to "Impairment of Long-Lived Assets," below. The Company capitalizes certain internal and external costs to develop technology classified as software to be sold or otherwise marketed to customers. Capitalization of these costs begins when a product's technological feasibility has been established and ends when a product is available for general release to customers. Amortization commences when the software is ready for general release to customers with useful lives estimated on a product-by-product basis. Other intangible assets with finite lives are amortized on a straight-line basis over the following estimated useful lives: Years Customer relationships 10 — 20 Engineering drawings 15 Design libraries 7 — 20 Software to be sold 3 — 4 Patents 10 — 20 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 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. When performing the annual test for impairment or as triggering events dictate, the Company has the option to first assess qualitative factors to determine whether it is more-likely-than-not that the fair value of any reporting unit or indefinite lived intangible asset is less than its carrying amount. In conducting a qualitative assessment, the Company evaluates the totality of relevant events and circumstances 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 impacts of the COVID-19 pandemic on the Company's operations), industry and competitive environment conditions, overall financial performance, business specific events and market considerations. In those instances where the Company concludes that it is not more-likely-than-not that the fair value is less than the carrying amount, no impairment is indicated and no further impairment test is performed. When the Company concludes it is more-likely-than-not that the fair value is less than the carrying amount, a quantitative impairment test is performed at the reporting unit or unit of account level, as applicable. The Company estimates the fair value of the relevant indefinite lived intangible asset based on an income approach using the relief-from-royalty method. The quantitative impairment test identifies both the existence of impairment and the amount of the impairment loss. In conducting the quantitative analysis, the Company compares the estimated fair value to the carrying values of the relevant indefinite-lived intangible asset. When the carrying amount of the indefinite-lived intangible asset exceeds its estimated fair value, the Company recognizes an impairment loss to the extent the carrying value exceeds the estimated fair value; however, the impairment loss for goodwill is limited to the total amount of the goodwill allocated to the reporting unit. The fair value is determined based on an income approach using the relief-from-royalty method. This approach is dependent upon several factors, including estimates of future revenue growth rates and trends, long term growth rates, weighted average cost of capital, royalty rates, discount rates and other variables. Management bases its fair value estimates on assumptions believed to be reasonable, but which are inherently uncertain and could materially affect the valuations. See Note 7, "Goodwill and Other Intangible Assets — Net," for further details on the Company's impairment assessments. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the assets’ carrying amount may not be recoverable. When reviewing its long-lived assets, other than goodwill and other intangible assets with indefinite lives, the Company groups its assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities and evaluates the asset group against the sum of the undiscounted future cash flows to determine impairment. If an impairment is determined to exist, the impairment loss is calculated based upon comparison of the fair value to the net book value of the assets. Impairment losses on assets held for sale are based on the estimated proceeds to be received, less costs to sell. |
Product Warranties | Product Warranties Estimated warranty costs are recorded in cost of sales at the time of sale of the products based on historical warranty experience for the related product or estimates of projected costs due to specific warranty issues on new products. These estimates are reviewed periodically and are adjusted based on changes in facts, circumstances or actual experience. See Note 14, "Product Warranties," for further details. |
Product Liabilities | Product Liabilities The Company records product liability reserves for its self-insured portion of any pending or threatened product liability actions. The reserve is based upon two estimates. First, the Company tracks the population of all outstanding pending and threatened product liability cases to determine an appropriate case reserve for each based upon the Company's best judgment and the advice of legal counsel. These estimates are continually evaluated and adjusted based upon changes to facts and circumstances surrounding the individual cases. Second, the Company determines the amount of additional reserve required to cover product liability claims anticipated to have occurred but have not yet been reported and to account for possible adverse development of the established case reserves. This analysis is performed by the Company two times per year. |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions For most of the Company's foreign operations, local currencies are considered the functional currency. Assets and liabilities of non-U.S. dollar functional currency entities are translated to U.S. dollars at year-end exchange rates and the resulting gains and losses arising from the translation of assets and liabilities located outside the U.S. and are recorded as a component of "Accumulated other comprehensive loss" ("AOCI") in the Consolidated Balance Sheets. Income and expense items are translated at average exchange rates in effect during the period and are recorded as a component of "Other (income) expense — net" in the Consolidated Statements of Operations. |
Derivative Financial Instruments and Hedging Activities | Derivative Financial Instruments and Hedging Activities The Company enters into derivative instruments to hedge interest rate risk, commodity exposure associated with aluminum, copper and steel prices and foreign currency exchange risk. The Company has adopted written policies and procedures that place all financial instruments under the direction of corporate treasury and restrict all derivative transactions to those intended for hedging purposes. The use of financial instruments for trading purposes is strictly prohibited. The Company records the fair values of all derivatives in the Consolidated Balance Sheets. The Company does not offset the fair values of derivative contract assets and liabilities. The change in a derivative’s fair value is recorded each period in current earnings or comprehensive income, depending on whether the derivative is designated and qualifies as part of a hedge transaction and if so, the type of hedge transaction. The amount of the derivative instrument fair market value adjustments for cash flow hedges and net investment hedges are reported in the Company's Consolidated Statements of Comprehensive Income, net of taxes. The Company recognizes fair market value adjustments for fair value hedges, as well as the offsetting gain or loss on the hedged item attributable to the hedged risk in current earnings within the same line item associated with the hedged item. |
Stock-Based Compensation | Stock-Based Compensation The Company's 2016 Omnibus Incentive Plan (the "2016 Plan") permits the granting of stock options, restricted stock awards and units, performance share awards and units, and other types of stock-based and cash awards. Stock-based compensation is measured at the fair value of the stock-based award as of the date of grant and is expensed over the vesting period of the award. The expense, net of forfeitures, is recognized using the straight-line method. |
Defined Benefit Plans | Defined Benefit Plans The Company provides a range of benefits to its employees and retired employees, including, for certain employees, pensions and postretirement health care coverage. The Company records Defined Benefit Plan assets and obligations using amounts calculated annually as of the Company's measurement date utilizing various actuarial assumptions such as discount rates, expected return on plan assets, compensation increases, retirement and mortality rates, and health care cost trend rates as of that date. The approaches used to determine the annual assumptions are as follows: • Discount Rate - The discount rate assumptions are based on the interest rate of non-callable high-quality corporate bonds, with appropriate consideration demographics of the participants in the Company's pension plans and benefit payment terms. • Expected Return on Plan Assets - The expected return on plan assets assumptions are based on the Company's expectation of the long-term average rate of return on assets in the pension funds, which is reflective of the current and projected asset mix of the funds and considers the historical returns earned on the funds. • Retirement and Mortality Rates - The retirement and mortality rate assumptions are based primarily on actual plan experience and actuarial mortality tables. • Health Care Cost Trend Rates - The health care cost trend rate assumptions are developed based on historical cost data, near-term outlook and an assessment of likely long-term trends. |
Deferred Compensation Plans | Deferred Compensation Plan The Welbilt Deferred Compensation Plan is an unfunded, non-tax-qualified deferred compensation plan for highly compensated and key management employees and for directors that allows participants to defer a portion of their compensation. The Plan permits the Company, at its option, to make matching contributions to the participants' accounts. The Company utilizes a rabbi trust to hold assets intended to satisfy the Company's obligations under the deferred compensation plan. The trust restricts the Company's use and access to the assets held but is subject to the claims of the Company's general creditors. Plan participants are able to direct deferrals and Company matching contributions into two separate investment programs, Program A and Program B. Program A invests solely in the Company’s stock; dividends paid on the Company’s stock, if any, are automatically reinvested, and all distributions must be made in Company stock. Program A is accounted for as a plan that does not permit diversification. The Company's stock held by Program A, carried at cost, and the corresponding deferred compensation liability are net within equity in the Company's Consolidated Balance Sheets. Program B offers a variety of investment options but does not include Company stock as an investment option. All distributions from Program B must be made in cash. Participants cannot transfer assets between programs. Program B is accounted for as a plan that permits diversification. Changes in the fair value of the assets are recognized in earnings. The deferred compensation obligation is adjusted, with a charge or credit to compensation cost, to reflect changes in the fair value of the obligation. The assets are included in "Other non-current assets", and the related obligations are included in "Other long-term liabilities" in the Consolidated Balance Sheets. |
Revenue Recognition | Revenue Recognition Revenue is recognized based on the satisfaction of performance obligations, which occurs when service is provided or control of a good transfers to a customer. A majority of the Company's net sales continue to be recognized at the point in time when products are shipped from its manufacturing facilities. The Company records deferred revenue when payment for products is received or due prior to the shipment of products to a customer. Shipping and handling revenues continue to be included as a component of "Net sales" and shipping and handling costs continue to be included in "Cost of sales" in the Consolidated Statements of Operations. Taxes collected from customers, which are subsequently remitted to governmental authorities, are excluded from revenues. For the majority of foodservice equipment and aftermarket parts and support, the transfer of control and revenue recognition materializes when the products are shipped from the manufacturing facility or the service is provided to the customer. The Company typically invoices its customers with payment terms of 30 days and the Company's average collection cycle is generally less than 60 days and the Company has determined these payment terms do not contain a significant financing component. Costs to obtain a customer contract are expensed as incurred as the Company's contract periods are generally one year or less. The amount of consideration received and revenue recognized varies with marketing incentives such as annual customer rebate programs and returns that are offered to customers. Variable consideration as a result of customer rebate programs is typically based on calendar-year purchases and is determined using the expected value method in interim periods as prescribed in the guidance. Customers have the right to return eligible equipment and parts. The expected returns are based on an analysis of historical experience. The estimate of revenue is adjusted at the earlier of when the most likely amount of the expected consideration changes or when the consideration becomes fixed. The impact of such adjustments was not material in the years ended December 31, 2020, 2019 and 2018, respectively. The Company utilizes the practical expedient to not adjust the amount of consideration for the effects of a significant financing component for all instances in which the period between the transfer of goods and payment is one year or less. The Company also utilizes the practical expedient to recognize the costs of obtaining a contract as an expense for contracts with an original expected length of one year or less. Substantially all of the Company's revenues consist of revenues from contracts with customers. These revenues are disaggregated by major source and geographic location and included in Note 22, "Business Segments." The Company believes this disaggregation best depicts the nature, amount, timing and uncertainty of its revenue and cash flows that are affected by economic factors. To a much lesser extent, the Company also recognizes other sources of revenue from both specific foodservice-based projects and subscriptions. The foodservice-based project revenues are recognized at either the point-in-time in which control transfers to the customer or may be recognized over time, depending on the nature of the performance obligations in the contract. Subscription revenues, which consist of subscription fees from customers accessing the Company's cloud-based application, are recognized ratably over the customer's subscription term. |
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-pandemic employee headcount levels. The Company has applied and will continue to apply for such assistance programs where relevant requirements and conditions have been met. |
Research and Development | Research and Development Research and development costs are charged to expense as incurred and are included within "Selling, general and administrative expenses" in the Consolidated Statements of Operations. Research and development expenses totaled $36.1 million, $41.3 million and $37.3 million for the years ended December 31, 2020, 2019 and 2018, respectively. Research and development costs include employee-related costs, materials, outsourced services and other administrative costs. |
Restructuring Charges | Restructuring Charges Restructuring charges for exit and disposal activities are recognized when the liability is incurred. The liability for the restructuring charge associated with an exit or disposal activity is measured initially at its fair value. |
Income Taxes | Income Taxes The Company is subject to income taxes in the U.S. and various foreign jurisdictions. The determination of the Company's income tax positions involves consideration of uncertainties, changing fiscal policies, tax laws, court rulings, regulations and related legislation. The Tax Cuts and Jobs Act ("Tax Act"), enacted on December 22, 2017, introduced comprehensive and complex tax legislation, including a provision designed to tax global intangible low-taxed income (“GILTI”), foreign-derived intangible income, and other items that are subject to continuous guidance and interpretations. The Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") was enacted on March 27, 2020 and includes several 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 Act in 2017. Accordingly, significant management judgment is required in determining the provision for income taxes, deferred tax assets and liabilities, unrecognized tax benefits and the valuation allowance recorded against deferred tax assets. Deferred income taxes arise from temporary differences between the tax bases of assets and liabilities and their reported amounts in the financial statements that will result in taxable or deductible amounts in future years when the reported amount of the assets and liabilities are recovered or settled, respectively. The recognition and measurement of deferred tax asset and liability balances and the corresponding deferred tax expense are determined for each tax-paying component in each relevant jurisdiction. The Company will record a valuation allowance that represents a reduction of deferred tax assets if, based on the weight of available evidence, both positive and negative, it is more-likely-than-not that the deferred tax assets will not be realized. The Company also recognizes liabilities for unrecognized tax benefits which are recognized if the weight of available evidence indicates that it is not more-likely-than-not that the positions will be sustained on examination, including resolution of the related appeals or litigation processes, if any. As of each balance sheet date, unrecognized tax benefits are reassessed and adjusted if the Company's judgment changes as a result of new information. The Company adopted the period cost method for the computation of GILTI, that was introduced in the Tax Act. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and included in "Selling, general and administrative expenses." |
Comprehensive Income | Comprehensive Income Comprehensive income includes, in addition to net earnings, other items that are reported as direct adjustments to equity. Currently, these items are foreign currency translation adjustments, the change in fair value of certain derivative instruments and employee pension and postretirement benefit adjustments. |
Concentration of Credit Risk | Concentration of Credit Risk Credit extended to customers through trade accounts receivable potentially subjects the Company to risk. This risk is limited due to the large number of customers and their dispersion across various industries and many geographical areas. However, a significant amount of the Company's receivables are with distributors, dealers and large companies in the foodservice and beverage industry. Management currently does not foresee a significant credit risk associated with these individual groups of receivables, but continues to monitor the exposure, if any. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation |
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, "Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," including subsequent amendments issued thereafter which clarify the standard (collectively, "Topic 326"), which significantly changes the impairment model for most financial instruments. Current guidance requires the recognition of credit losses based on an incurred loss impairment methodology that reflects losses once the losses are probable. In accordance with Topic 326, the Company is required to use a current expected credit loss model (“CECL”) that will immediately recognize an estimate of credit losses that are expected to occur over the life of the financial instruments that are within the scope of this update, including trade receivables. The CECL model uses a broader range of reasonable and supportable information in the development of credit loss estimates. This standard was effective for the Company on January 1, 2020 and, upon adoption, the Company recorded an additional expected credit loss allowance with an offsetting adjustment to retained earnings of $0.4 million. 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 12, "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 December 31, 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 will adopt ASU 2019-12 prospectively as of January 1, 2021 and has determined it will not have a material impact on the Company's consolidated financial statements. Recent accounting guidance not discussed above is not applicable, did not have, or is not expected to have a material impact on the Company. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives of Property, Plant and Equipment | Property, plant and equipment are primarily depreciated over the following estimated useful lives: Years Building and improvements 2 — 40 Machinery, equipment and tooling 2 — 20 Furniture and fixtures 3 — 15 Computer hardware and software for internal use 2 — 10 |
Schedule of Estimated Useful Lives of Other Intangible Assets | Other intangible assets with finite lives are amortized on a straight-line basis over the following estimated useful lives: Years Customer relationships 10 — 20 Engineering drawings 15 Design libraries 7 — 20 Software to be sold 3 — 4 Patents 10 — 20 |
Schedule of Government Assistance | Government assistance has been reflected as a reduction to the related expense for which the assistance relates as follows: (in millions) Year ended December 31, 2020 Reduction to related expense (1) : Cost of sales $ 7.1 Selling, general and administrative expenses 5.6 Total $ 12.7 (1) As of December 31, 2020, $1.9 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. |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Consideration Paid and Identified Assets Acquired and Liabilities Assumed | The following table summarizes the consideration paid for Crem and the amounts of the identified assets acquired and liabilities assumed as of the April 19, 2018 acquisition date: (in millions) Total purchase price $ 220.3 Less: cash acquired 4.7 Total purchase price, net of cash acquired $ 215.6 Recognized amounts of identifiable assets acquired and (liabilities assumed), at fair value: Cash $ 4.7 Accounts receivable 17.2 Inventories 16.9 Prepaids and other current assets 1.9 Property, plant and equipment 4.9 Other intangible assets 131.2 Other non-current assets 2.1 Trade accounts payable (11.4) Accrued expenses and other liabilities (6.0) Deferred income taxes (32.8) Pension and postretirement health obligations (0.4) Other long-term liabilities (5.0) Fair value of assets acquired and liabilities assumed 123.3 Allocation to goodwill $ 97.0 |
Schedule of Preliminary Fair Value Estimates of Intangible Assets Other than Goodwill Acquired | The fair value for the Company's identifiable intangible assets other than goodwill acquired as part of the Crem Acquisition are as follows: (in millions) Estimated Fair Values Useful Life (in years) Weighted Average Amortization Period (in years) Customer relationships $ 64.2 10 10.0 Design libraries 20.6 7 — 20 10.4 Total definite-lived intangible assets 84.8 10.1 Trade name 46.4 Indefinite Total intangible assets $ 131.2 |
Inventories - Net (Tables)
Inventories - Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of the Components of Inventories - Net | The components of "Inventories — net" are as follows: (in millions) As of December 31, 2020 2019 Inventories — net: Raw materials $ 85.6 $ 81.4 Work-in-process 13.9 14.2 Finished goods 85.4 95.0 Total inventories at FIFO cost 184.9 190.6 LIFO Reserve (4.3) (4.2) Total inventories — net $ 180.6 $ 186.4 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Components of Property, Plant and Equipment - Net | The components of "Property, plant and equipment — net" are as follows: (in millions) As of December 31, 2020 2019 Property, plant and equipment — net: Land $ 9.7 $ 9.7 Building and improvements 99.8 93.2 Machinery, equipment and tooling 231.7 223.3 Furniture and fixtures 8.1 7.6 Computer hardware and software for internal use 66.8 66.1 Construction in progress 14.1 22.0 Total cost 430.2 421.9 Less accumulated depreciation (301.1) (294.4) Total property, plant and equipment — net $ 129.1 $ 127.5 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets - Net (Tables) | 12 Months Ended |
Dec. 31, 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 business segment for the years ended December 31, 2020, 2019 and 2018 are as follows: (in millions) Americas EMEA APAC Total Goodwill balance at December 31, 2018 (1) $ 832.6 $ 83.1 $ 19.9 $ 935.6 Foreign currency impact — (2.5) — (2.5) Goodwill balance at December 31, 2019 $ 832.6 $ 80.6 $ 19.9 $ 933.1 Foreign currency impact — 8.7 1.1 9.8 Goodwill balance at December 31, 2020 $ 832.6 $ 89.3 $ 21.0 $ 942.9 |
Changes in Gross Carrying Amount and Balances of Finite-Lived Intangible Assets | The gross carrying amounts and accumulated amortization of the Company's intangible assets, other than goodwill, are as follows: (in millions) As of December 31, 2020 2019 Gross Impairment Charges Accumulated Net Gross Accumulated Net Customer relationships $ 479.1 $ — $ (271.6) $ 207.5 $ 472.8 $ (243.6) $ 229.2 Trademarks and trade names 223.1 (11.1) — 212.0 217.6 — 217.6 Other intangibles 173.1 — (126.6) 46.5 166.9 (109.8) 57.1 Patents 5.8 — (2.2) 3.6 5.8 (2.0) 3.8 Total $ 881.1 $ (11.1) $ (400.4) $ 469.6 $ 863.1 $ (355.4) $ 507.7 |
Changes in Gross Carrying Amount and Balances of Indefinite-Lived Intangible Assets | The gross carrying amounts and accumulated amortization of the Company's intangible assets, other than goodwill, are as follows: (in millions) As of December 31, 2020 2019 Gross Impairment Charges Accumulated Net Gross Accumulated Net Customer relationships $ 479.1 $ — $ (271.6) $ 207.5 $ 472.8 $ (243.6) $ 229.2 Trademarks and trade names 223.1 (11.1) — 212.0 217.6 — 217.6 Other intangibles 173.1 — (126.6) 46.5 166.9 (109.8) 57.1 Patents 5.8 — (2.2) 3.6 5.8 (2.0) 3.8 Total $ 881.1 $ (11.1) $ (400.4) $ 469.6 $ 863.1 $ (355.4) $ 507.7 |
Schedule of Estimated Amortization of Finite-Lived Intangible Assets | As of December 31, 2020, the estimated future amortization for the Company's definite lived intangible assets for each of the five succeeding years is as follows: (in millions) Year ending December 31: 2021 $ 45.1 2022 $ 40.4 2023 $ 32.7 2024 $ 31.8 2025 $ 31.8 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 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) As of December 31, 2020 2019 Accrued expenses and other liabilities: Accrued rebates and commissions $ 40.1 $ 56.2 Miscellaneous accrued expenses 41.1 37.8 Employee related expenses 35.6 34.7 Interest payable 16.1 15.8 Operating lease liabilities 9.7 10.0 Restructuring liabilities 4.0 6.3 Business Transformation Program related expenses 0.8 5.8 Derivative liabilities 0.6 5.0 Income and other taxes payable 5.6 11.2 Deferred revenues 2.9 3.1 Customer deposits 3.9 3.1 Pension and postretirement health liabilities 2.1 2.1 Product liabilities 1.7 1.3 Total accrued expenses and other liabilities $ 164.2 $ 192.4 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Summary of Earnings before Income Taxes | "(Loss) earnings before income taxes" in the Consolidated Statements of Operations consists of the following: (in millions) Years Ended December 31, 2020 2019 2018 Domestic $ (73.6) $ (35.8) $ (8.0) Foreign 59.9 111.5 97.0 Total (loss) earnings before income taxes $ (13.7) $ 75.7 $ 89.0 |
Schedule of the Components of Income Taxes | "Income tax (benefit) expense " in the Consolidated Statements of Operations consists of the following: (in millions) Years Ended December 31, 2020 2019 2018 Current: Federal and state $ (14.7) $ 9.0 $ (4.3) Foreign 16.6 30.4 29.1 Total current tax expense 1.9 39.4 24.8 Deferred: Federal and state (1.8) (15.0) (14.0) Foreign (6.4) (4.6) — Total deferred tax benefit (8.2) (19.6) (14.0) Total: Federal and state (16.5) (6.0) (18.3) Foreign 10.2 25.8 29.1 Income tax (benefit) expense $ (6.3) $ 19.8 $ 10.8 |
Reconciliation of the U.S. Federal Statutory Income Tax Rate | A reconciliation of the U.S. federal statutory income tax rate to the Company's effective tax rate is as follows: Years Ended December 31, 2020 2019 2018 Federal income tax at statutory rate 21.0 % 21.0 % 21.0 % State income expense (benefit) 1.3 (0.2) 0.5 Manufacturing and research incentives 7.1 (1.2) (3.1) Taxes on foreign income (6.6) 8.4 7.6 Repatriation of foreign income - Tax Act — — (11.2) Global intangible low taxed income - Tax Act — 2.0 1.5 Foreign derived intangible income — (1.0) (1.3) CARES Act net operating loss carryback 51.2 — — Adjustments for valuation allowances 1.5 (2.1) (0.2) Unrecognized tax benefits (19.1) (1.9) 0.2 Discrete adjustments — — (2.6) US permanent adjustments - Non Tax Act (1) (8.8) 0.5 0.7 Other items (1) (1.6) 0.7 (1.0) Effective tax rate 46.0 % 26.2 % 12.1 % |
Schedules of Significant Deferred Tax Assets and Liabilities | Significant components of the Company’s non-current deferred tax assets and liabilities are as follows: (in millions) As of December 31, 2020 2019 Non-current deferred tax assets (liabilities): Inventories $ 4.3 $ 3.5 Accounts receivable 0.5 0.5 Property, plant and equipment (9.0) (6.7) Intangible assets (123.1) (130.9) Deferred employee benefits 14.8 15.2 Product warranty reserves 7.5 8.4 Product liability reserves 1.7 1.7 Operating lease right-of-use assets (11.8) (9.9) Operating lease liabilities 11.7 9.7 Interest carryforwards 16.2 20.6 Loss carryforwards 43.4 36.2 Credit carryforwards 6.5 — Other 6.8 12.8 Non-current deferred tax liabilities (30.5) (38.9) Less valuation allowance (30.9) (28.3) Net non-current deferred tax liabilities $ (61.4) $ (67.2) Current and long-term tax assets and liabilities included in the Company's Consolidated Balance Sheets consist of the following: (in millions) As of December 31, Consolidated Balance Sheets Line Item Location 2020 2019 Income tax receivable $ 27.4 $ 11.3 Prepaids and other current assets Deferred tax assets $ 15.1 $ 14.7 Other non-current assets Income taxes payable $ (5.6) $ (11.2) Accrued expenses and other liabilities Income taxes payable $ (0.1) $ (0.6) Other long-term liabilities Deferred tax liabilities $ (76.5) $ (81.9) Deferred income taxes |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the Company's gross change in unrecognized tax benefits, excluding interest and penalties, is as follows: (in millions) Years Ended December 31, 2020 2019 2018 Balance at beginning of year $ 2.9 $ 11.5 $ 12.3 Additions based on tax positions related to the current year 2.7 — — Additions for tax positions of prior years 2.9 — 3.3 Reductions for tax positions of prior years — — (4.1) Reductions based on settlements with taxing authorities — (1.3) — Reductions for lapse of statute of limitations (0.1) (7.3) — Balance at end of year $ 8.4 $ 2.9 $ 11.5 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | The carrying value of the Company's outstanding debt consists of the following: As of December 31, 2020 As of December 31, 2019 (in millions, except percentage data) Carrying value Weighted Average Interest Rate Carrying value Weighted Average Interest Rate Long-term debt and finance leases: Revolving Credit Facility $ 143.0 4.21 % $ 141.8 5.00 % Term Loan B Facility 855.0 3.45 % 855.0 5.11 % 9.50% Senior Notes due 2024 425.0 9.72 % 425.0 9.72 % Finance leases 2.2 4.80 % 2.5 4.83 % Total debt and finance leases, including current portion 1,425.2 1,424.3 Less current portion: Finance leases (1.0) (1.2) Unamortized debt issuance costs (1) (16.7) (20.5) Hedge accounting fair value adjustment (2) 0.3 0.5 Total long-term debt and finance leases $ 1,407.8 $ 1,403.1 (1) Total debt issuance costs, net of amortization as of December 31, 2020 and 2019 were $20.3 million and $23.0 million, respectively, of which $3.6 million and $2.5 million are related to the Revolving Credit Facility 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. |
Senior Note Redemption Prices | The Senior Notes are redeemable, at the Company's option, in whole or in part from time to time, at a redemption price (expressed as percentages of the principal amount thereof) equal to 100.0% of the principal amount thereof plus a "make-whole" premium and accrued but unpaid interest to the date of redemption during the remaining 12-month periods commencing on February 15 of the years set forth below: Percentage 2020 104.750 % 2021 102.375 % 2022 and thereafter 100.000 % |
Maturities of Debt | Future debt maturities, excluding finance leases, as of December 31, 2020 and for succeeding years are as follows: (in millions) Year ending December 31: 2021 $ — 2022 — 2023 143.0 2024 434.0 2025 846.0 Thereafter — Total $ 1,423.0 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Outstanding Commodity and Currency Forward Contracts | The outstanding commodity and currency forward contracts were entered into as hedges of forecasted transactions and continue to qualify for hedge accounting are as follows: Commodity Units Hedged Unit As of December 31, 2020 (1) 2019 (1) 2018 Aluminum — — 1,446 MT Copper — — 546 MT Steel — — 7,080 Short tons (1) As of October 1, 2019, the Company elected to de-designate all of its commodity derivative contracts. Currency Units Hedged (in millions) As of December 31, 2020 2019 2018 Canadian Dollar 6.4 8.0 11.0 Euro 3.3 7.6 9.9 British Pound 6.1 8.0 12.0 Mexican Peso 92.8 111.3 176.0 Singapore Dollar 2.3 2.0 1.5 The Company had the following outstanding commodity and currency forward contracts that were not designated as hedging instruments: Commodity Contracted Units Unit As of December 31, 2020 2019 2018 Aluminum 35 524 — MT Copper 18 269 — MT Steel — 1,778 — Short tons Currency Contracted Units (in millions) As of December 31, 2020 2019 2018 Canadian Dollar 1.1 1.3 — Euro 84.2 75.6 69.7 Swiss Franc 7.0 7.0 5.3 British Pound 1.0 20.3 23.7 Singapore Dollar 0.3 28.4 28.4 Mexican Peso 13.8 11.8 — 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) Location of gain/(loss) (in millions) Years Ended December 31, 2020 2019 2018 Foreign currency exchange contracts $ (2.6) $ 6.6 $ (9.7) Other (income) expense — net Commodity contracts (0.2) 0.1 — Other (income) expense — net Total $ (2.8) $ 6.7 $ (9.7) |
Schedule of the Effect of Derivative Instruments on the Consolidated Statement of Operations for Gains or Losses Initially Recognized in Other Comprehensive Income (OCI) in the Consolidated Balance Sheet | The effects of Company's derivative instruments on the Consolidated Statements of Comprehensive Income and Consolidated Statements of Operations for gains or losses initially recognized in AOCI in the Consolidated Balance Sheets were as follows: Derivatives in cash flow hedging relationships Pretax gain/(loss) recognized in AOCI Pretax gain/(loss) reclassified from AOCI into income (in millions) Years Ended December 31, Location Years Ended December 31, 2020 2019 2018 2020 2019 2018 Foreign currency exchange contracts $ 0.5 $ 0.4 $ (2.2) Cost of sales $ (0.4) $ (0.9) $ (0.7) Commodity contracts — (1.2) (1.0) Cost of sales (1.0) (1.3) 2.3 Interest rate swap contracts — (1.7) 3.4 Interest expense — 2.6 1.9 Total $ 0.5 $ (2.5) $ 0.2 $ (1.4) $ 0.4 $ 3.5 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 Years Ended December 31, 2020 2019 2018 Cost of Sales Interest Expense 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 $ 743.4 $ 81.4 $ 1,027.0 $ 97.3 $ 1,020.9 $ 94.5 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) $ — $ 5.3 Derivative designated as hedging instrument $ — $ — $ — $ 13.3 $ — $ (4.0) Gain/(loss) on cash flow hedging relationships: Foreign currency exchange contracts: Amount of gain/(loss) reclassified from AOCI into income $ (0.4) $ — $ (0.9) $ — $ (0.7) $ — Commodity contracts: Amount of gain/(loss) reclassified from AOCI into income $ (1.0) $ — $ (1.3) $ — $ 2.3 $ — Interest rate contracts: Amount of gain/(loss) reclassified from AOCI into income $ — $ — $ — $ 2.6 $ — $ 1.9 The location and effects of the net investment hedge on the Consolidated Statements of Comprehensive Income and Consolidated Statements of Operations are as follows: 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) Years Ended December 31, Location Years Ended December 31, Location Years Ended December 31, 2020 2019 2018 2020 2019 2018 2020 2019 2018 Interest rate swap contract $ (0.8) $ 2.8 $ 3.9 N/A $ — $ — $ — Other (income) expense — net $ 0.3 $ 1.6 $ — N/A = Not applicable |
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 Fair Value As of December 31, 2020 2019 Derivatives designated as hedging instruments: Foreign currency exchange contracts Prepaids and other current assets $ 1.1 $ 0.8 Total derivatives designated as hedging instruments $ 1.1 $ 0.8 Derivatives NOT designated as hedging instruments: Foreign currency exchange contracts Prepaids and other current assets $ 0.9 $ 0.4 Total derivatives NOT designated as hedging instruments $ 0.9 $ 0.4 Total asset derivatives $ 2.0 $ 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 Fair Value As of December 31, 2020 2019 Derivatives designated as hedging instruments: Foreign currency exchange contracts Accrued expenses and other liabilities $ 0.2 $ 0.6 Interest rate swap contracts Accrued expenses and other liabilities — 3.2 Total derivatives designated as hedging instruments $ 0.2 $ 3.8 Derivatives NOT designated as hedging instruments: Foreign currency exchange contracts Accrued expenses and other liabilities $ 0.4 $ 0.6 Commodity contracts Accrued expenses and other liabilities — 0.6 Total derivatives NOT designated as hedging instruments $ 0.4 $ 1.2 Total liability derivatives $ 0.6 $ 5.0 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
Financial Assets and Liabilities Accounted for at Fair Value on a Recurring Basis by Level within the Fair Value Hierarchy | 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 as of December 31, 2020 and 2019 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 as of December 31, 2020 Level 1 Level 2 Level 3 Total Current assets: Foreign currency exchange contracts $ — $ 2.0 $ — $ 2.0 Total current assets at fair value — 2.0 — 2.0 Total assets at fair value $ — $ 2.0 $ — $ 2.0 Current liabilities: Foreign currency exchange contracts $ — $ 0.6 $ — $ 0.6 Total current liabilities at fair value — 0.6 — 0.6 Total liabilities at fair value $ — $ 0.6 $ — $ 0.6 (in millions) Fair Value as of 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 assumptions for the impairment charge recorded during the year ended December 31, 2020: Long Term Growth Rate 2.0% Discount Rate 12.0% Pre-Tax Royalty Rate 1.50% - 2.25% |
Product Warranties (Tables)
Product Warranties (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Guarantees [Abstract] | |
Summary of Warranty Activity | The product warranty liability activity is as follows: (in millions) As of December 31, 2020 2019 Balance at the beginning of the period $ 43.9 $ 39.7 Additions for issuance of warranties 27.7 42.4 Settlements (in cash or in kind) (32.2) (38.5) Currency translation impact 0.5 0.3 Balance at the end of the period (1) $ 39.9 $ 43.9 (1) Long-term product warranty liabilities are included in "Other long-term liabilities" and totaled $10.0 million and $10.6 million at December 31, 2020 and 2019, respectively. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Period Benefit Costs | The components of periodic benefit costs for the Company's Defined Benefit Plans are as follows: (in millions, except percentage data) Pension Plans Postretirement Health Years Ended December 31, Years Ended December 31, 2020 2019 2018 2020 2019 2018 Service cost - benefits earned during the year $ 0.1 $ 0.1 $ 0.1 $ — $ — $ — Interest cost of projected benefit obligation 3.8 5.2 5.2 0.2 0.2 0.3 Expected return on assets (4.1) (4.7) (5.8) — — — Amortization of prior service cost — — — (0.2) (0.2) — Amortization of actuarial net loss 2.4 2.5 2.2 0.7 0.3 0.2 Settlement loss recognized — 1.2 2.4 — — — Net periodic benefit cost $ 2.2 $ 4.3 $ 4.1 $ 0.7 $ 0.3 $ 0.5 Weighted average assumptions: Discount rate 2.4 % 3.3 % 2.8 % 2.6 % 3.8 % 3.2 % Expected return on plan assets 2.5 % 3.1 % 3.2 % N/A N/A N/A Rate of compensation increase 1.8 % 2.0 % 2.0 % 3.0 % 3.0 % 1.5 % |
Reconciliation of the Changes in Benefit Obligation, the Changes in Plan Assets, and the Funded Status | The following is a reconciliation of the changes in benefit obligation, the changes in plan assets and the funded status of the Company's Defined Benefit Plans: (in millions, except percentage data) Pension Plans Postretirement Health As of December 31, As of December 31, 2020 2019 2020 2019 Change in Benefit Obligations: Benefit obligation, beginning of year $ 193.4 $ 186.5 $ 7.6 $ 7.3 Service cost 0.1 0.1 — — Interest cost 3.8 5.2 0.2 0.2 Participant contributions — — 0.3 0.3 Plan curtailments (0.2) — — — Plan settlements (0.4) (5.5) — — Plan amendments — — — (0.1) Actuarial loss 18.7 12.7 0.5 2.0 Currency translation adjustment 4.7 5.0 — — Benefits paid (12.9) (10.6) (1.0) (2.1) Benefit obligation, end of year $ 207.2 $ 193.4 $ 7.6 $ 7.6 Change in Plan Assets: Fair value of plan assets, beginning of year $ 166.3 $ 152.6 $ — $ — Actual return on plan assets 18.0 16.5 — — Employer contributions 9.3 8.3 0.7 1.8 Participant contributions — — 0.3 0.3 Plan settlements (0.4) (5.5) — — Currency translation adjustment 4.5 5.0 — — Benefits paid (12.9) (10.6) (1.0) (2.1) Fair value of plan assets, end of year $ 184.8 $ 166.3 $ — $ — Unfunded status (1) $ (22.4) $ (27.1) $ (7.6) $ (7.6) Weighted-Average Assumptions: Discount rate 1.6 % 2.4 % 2.0 % 2.6 % Rate of compensation increase N/A 1.8 % 3.0 % 3.0 % (1) As of both December 31, 2020 and 2019, the short-term portion of the Company's Pension Plans obligation totaled $0.9 million. The short-term portion of the Company's Postretirement Health and Other Plans obligation totaled $1.2 million, as of both December 31, 2020 and 2019. These short-term obligations are included in "Accrued expenses and other liabilities" in the Consolidated Balance Sheets. |
Amounts Recognized in Accumulated Other Comprehensive Income | Amounts recognized in AOCI consist of the following: (in millions) Pension Plans Postretirement As of December 31, As of December 31, 2020 2019 2020 2019 Net actuarial loss $ (43.0) $ (40.0) $ (4.0) $ (4.2) Prior service credit 0.6 0.6 1.2 1.5 Total amount recognized $ (42.4) $ (39.4) $ (2.8) $ (2.7) |
Summary of the Sensitivity of Retirement Obligations and Retirement Benefit Costs of Plans to Changes in the Key Assumptions | The following table summarizes the sensitivity of the Company's retirement obligations as of December 31, 2020 for retirement benefit costs of the Defined Benefit Plans and the impact of changes to key assumptions used to determine those results (in millions): Change in assumption: Estimated increase Estimated increase Estimated increase Estimated increase 0.5% increase in discount rate $ (0.5) $ (12.3) $ — $ (0.2) 0.5% decrease in discount rate $ 0.4 $ 14.0 $ — $ 0.2 0.5% increase in long-term return on assets $ (0.9) N/A N/A N/A 0.5% decrease in long-term return on assets $ 0.9 N/A N/A N/A |
Schedule of the Weighted-Average Asset Allocations of the Pension Plans | The weighted-average asset allocations of the Pension Plans asset portfolios by category are as follows: As of December 31, 2020 2019 Equity 11.1 % 17.8 % Debt securities 46.4 % 33.4 % Other 42.5 % 48.8 % |
Schedule of the Actual Allocations for the Pension Assets and Target Allocations by Asset Class | The actual allocations for the Pension Plans asset portfolios and target allocations by asset class as of December 31, 2020, are as follows: Target Allocations Weighted Average Asset Allocations Equity securities 12.3 % 11.1 % Debt securities 48.0 % 46.4 % Other 39.7 % 42.5 % |
Schedule of Plan Assets Using the Fair Value Hierarchy | The following tables present the Company's Pension Plans asset portfolios using the three levels of the fair value hierarchy which are based on the reliability of the inputs used to determine fair value. Level 1 refers to fair values determined based on quoted prices in active markets for identical assets. Level 2 refers to fair values estimated using significant other observable inputs, and Level 3 includes fair values estimated using significant non-observable inputs. The fair values are as follows: Assets (in millions) As of December 31, 2020 Quoted Prices in Significant Other Unobservable Total Cash and cash equivalents $ 0.7 $ — $ — $ 0.7 Insurance group annuity contracts — — 73.8 73.8 Common/collective trust funds — Government, corporate and other non-government debt — 85.9 — 85.9 Common/collective trust funds — Corporate equity — 20.4 — 20.4 Common/collective trust funds — Customized strategy — 4.0 — 4.0 Total $ 0.7 $ 110.3 $ 73.8 $ 184.8 Assets (in millions) As of December 31, 2019 Quoted Prices in Significant Other Unobservable Total Cash and cash equivalents $ 1.0 $ — $ — $ 1.0 Insurance group annuity contracts — — 69.0 69.0 Common/collective trust funds — Government, corporate and other non-government debt — 55.5 — 55.5 Common/collective trust funds — Corporate equity — 29.5 — 29.5 Common/collective trust funds — Customized strategy — 11.3 — 11.3 Total $ 1.0 $ 96.3 $ 69.0 $ 166.3 |
Reconciliation of the Fair Values Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) from the Beginning of the Year to the End of the Year | A reconciliation of the fair value measurements of the Pensions Plans portfolio of assets using significant unobservable inputs (Level 3) from the beginning of the year to the end of the year is as follows: (in millions) Insurance Contracts 2020 2019 Beginning Balance $ 69.0 $ 65.6 Contributions 0.1 0.1 Plan settlements (0.4) — Actual return on assets 7.3 5.1 Benefit payments (4.5) (4.4) Foreign currency impact 2.3 2.6 Ending Balance $ 73.8 $ 69.0 |
Schedule of Projected Benefit Payments from the Plans | Projected benefit payments from the Defined Benefit Plans as of December 31, 2020 are estimated as follows: (in millions) Pension Plans Postretirement Year ending December 31: 2021 $ 11.1 $ 1.2 2022 11.1 1.2 2023 11.1 1.0 2024 11.0 0.9 2025 10.9 0.6 2026-2030 50.6 1.7 Total $ 105.8 $ 6.6 |
Fair Value of Plan Assets for Which the Accumulated Benefit Obligation is in Excess of the Plan Assets | The fair value of the Pension Plans' portfolio of assets for which the accumulated benefit obligation is in excess of the assets is as follows: (in millions) Pension Plans As of December 31, 2020 2019 Projected benefit obligation $ 207.2 $ 193.4 Accumulated benefit obligation $ 207.2 $ 193.4 Fair value of plan assets $ 184.8 $ 166.3 |
Business Transformation Progr_2
Business Transformation Program and Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The classification of the Company's Transformation Program expenses are as follows: December 31, (in millions) 2020 2019 Transformation Program expense: Cost of sales $ 2.0 $ 2.0 Selling, general and administrative expenses 21.3 33.3 Total $ 23.3 $ 35.3 The Company's restructuring expense by segment is as follows: (in millions) December 31, 2020 2019 2018 Americas $ 2.3 $ 3.4 $ 2.3 EMEA 2.4 2.6 1.7 APAC 2.2 0.6 0.5 Corporate 1.3 3.2 1.5 Total restructuring activities $ 8.2 $ 9.8 $ 6.0 The Company's restructuring expense is reported in the Consolidated Statements of Operations as follows: (in millions) December 31, 2020 2019 2018 Cost of sales $ 0.4 $ 0.4 $ — Restructuring and other expense 7.8 9.4 6.0 Total restructuring activities $ 8.2 $ 9.8 $ 6.0 |
Schedule of Restructuring Reserve | The Company's restructuring activity and balance of the restructuring liability is as follows: (in millions) 2020 Plans 2019 Plans 2018 and Previous Plans Workforce reductions Workforce reductions Other Workforce reductions Pension withdrawal obligation Total Restructuring liability as of December 31, 2018 $ — $ — $ — $ 2.0 $ 11.1 $ 13.1 Restructuring activities — 9.6 0.4 (0.2) — 9.8 Cash payments — (3.8) — (1.6) (1.2) (6.6) Non-cash adjustments (1) — (1.0) (0.4) — — (1.4) Restructuring liability as of December 31, 2019 — 4.8 — 0.2 9.9 14.9 Restructuring activities 5.6 1.2 1.4 — — 8.2 Cash payments (3.1) (5.8) — (0.2) (1.3) (10.4) Non-cash adjustments (1) (0.1) — (1.4) — — (1.5) Restructuring liability as of December 31, 2020 $ 2.4 $ 0.2 $ — $ — $ 8.6 $ 11.2 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of Components Accumulated Other Comprehensive Income (Loss) | The components of the Company's AOCI are as follows: (in millions) As of 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 $ 19.1 $ (4.3) Derivative instrument fair market value, net of income tax expense of $1.1 million and $0.8 million, respectively — (1.6) Employee pension and postretirement benefit adjustments, net of income tax benefit of $6.6 million and $6.5 million, respectively (38.6) (35.6) Total accumulated other comprehensive loss $ (19.5) $ (41.5) The summary of changes in AOCI for the years ended December 31, 2020, 2019 and 2018 are as follows: (in millions) Foreign Currency Translation Adjustments (1) Gains and Losses on Cash Flow Hedges Pension & Postretirement Total Balance as of December 31, 2017 $ 4.4 $ 3.6 $ (40.0) $ (32.0) Other comprehensive (loss) income before reclassifications (10.2) 0.2 (0.5) (10.5) Reclassifications — (3.5) 4.8 1.3 Tax effect of reclassifications (0.7) 0.5 (0.2) (0.4) Net current period other comprehensive (loss) income (10.9) (2.8) 4.1 (9.6) Balance as of December 31, 2018 (6.5) 0.8 (35.9) (41.6) Other comprehensive income (loss) before reclassifications 2.7 (2.5) (3.7) (3.5) Reclassifications — (0.4) 3.8 3.4 Tax effect of reclassifications (0.5) 0.5 0.2 0.2 Net current period other comprehensive income (loss) 2.2 (2.4) 0.3 0.1 Balance as of December 31, 2019 (4.3) (1.6) (35.6) (41.5) Other comprehensive income (loss) before reclassifications 23.6 0.5 (6.0) 18.1 Reclassifications — 1.4 2.9 4.3 Tax effect of reclassifications (0.2) (0.3) 0.1 (0.4) Net current period other comprehensive income (loss) 23.4 1.6 (3.0) 22.0 Balance as of December 31, 2020 $ 19.1 $ — $ (38.6) $ (19.5) |
Reclassification out of Accumulated Other Comprehensive Income | Reclassifications from AOCI, net of tax, to income were as follows: (in millions) Years Ended December 31, Location in Consolidated Statements of Operations 2020 2019 2018 (Losses) gains on cash flow hedges: Foreign currency exchange contracts $ (0.4) $ (0.9) $ (0.7) Cost of sales Commodity contracts (1.0) (1.3) 2.3 Cost of sales Interest expense — 2.6 1.9 Interest expense (Losses) gains on cash flow hedges, before tax (1.4) 0.4 3.5 Tax effect 0.3 0.1 (0.8) Income taxes (Losses) gains on cash flow hedges, net of tax $ (1.1) $ 0.5 $ 2.7 Amortization of pension and postretirement items: Amortization of prior service cost $ 0.2 $ 0.2 $ — Other (income) expense — net Actuarial losses (3.1) (2.8) (2.4) Other (income) expense — net Pension settlement — (1.2) (2.4) Other (income) expense — net Amortization of pension and postretirement items, before tax (2.9) (3.8) (4.8) Tax effect 0.7 0.4 0.8 Income tax (benefit) expense Amortization of pension and postretirement items, net of tax $ (2.2) $ (3.4) $ (4.0) Total reclassifications, net of tax $ (3.3) $ (2.9) $ (1.3) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Components of Lease Expense | The components of the Company's lease expense are as follows: Years Ended December 31, (in millions) 2020 2019 Operating lease expense $ 14.9 $ 15.9 Finance lease expense: Depreciation of assets 1.2 1.2 Interest on lease liabilities 0.1 0.1 Short-term lease expense 2.4 2.8 Variable lease expense 0.5 1.0 Total lease expense $ 19.1 $ 21.0 |
Supplemental Balance Sheet Information | The supplemental balance sheet information for the Company's leases is as follows: As of December 31, (in millions, except lease term and discount rate) 2020 2019 Operating leases: Operating lease right-of-use assets $ 47.5 $ 39.9 Current operating lease liabilities $ 9.7 $ 10.0 Non-current operating lease liabilities 37.7 29.1 Total operating lease liabilities $ 47.4 $ 39.1 Finance leases: Property, plant and equipment, at cost $ 5.4 $ 6.2 Accumulated depreciation (2.8) (3.5) Total finance leases - property and equipment — net $ 2.6 $ 2.7 Current obligations of finance leases $ 1.0 $ 1.2 Non-current finance lease liabilities 1.2 1.3 Total finance lease liabilities $ 2.2 $ 2.5 Weighted average remaining lease term (in years): Operating leases 6.8 7.1 Finance leases 2.8 2.3 Weighted average discount rate: Operating leases 7.1 % 7.6 % Finance leases 4.8 % 4.8 % |
Supplemental Cash Flow Information | The supplemental cash flow information for the Company's leases is as follows: Years Ended December 31, (in millions) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used in operating leases $ 14.2 $ 14.6 Operating cash flows used in financing leases $ 0.1 $ 0.1 Financing cash flows used in financing leases $ 1.3 $ 1.2 Right-of-use assets obtained in exchange for lease obligations: Operating Leases $ 19.8 $ 14.1 Finance Leases $ 0.9 $ 0.8 |
Future Minimum Rental Obligations Under Operating Lease Liabilities | The following table presents the future maturities of the Company's lease liabilities as of December 31, 2020: (in millions) Operating Financing Year ending December 31: 2021 $ 12.4 $ 1.0 2022 10.0 0.8 2023 8.3 0.3 2024 6.9 0.1 2025 5.2 0.1 Thereafter 18.7 — Total lease payments 61.5 2.3 Less: imputed interest (14.1) (0.1) Total lease obligations $ 47.4 $ 2.2 |
Future Minimum Rental Obligations Under Financing Lease Liabilities | The following table presents the future maturities of the Company's lease liabilities as of December 31, 2020: (in millions) Operating Financing Year ending December 31: 2021 $ 12.4 $ 1.0 2022 10.0 0.8 2023 8.3 0.3 2024 6.9 0.1 2025 5.2 0.1 Thereafter 18.7 — Total lease payments 61.5 2.3 Less: imputed interest (14.1) (0.1) Total lease obligations $ 47.4 $ 2.2 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The Company's stock-based compensation expense is included in the following financial statement line items: (in millions) Years Ended December 31, 2020 (1) 2019 2018 Stock-based compensation expense: Selling, general and administrative expenses $ 5.1 $ 6.4 $ 6.7 Restructuring and other expense (0.4) 0.9 0.3 Total stock-based compensation expense $ 4.7 $ 7.3 $ 7.0 (1) Stock-based compensation expense for the year ended December 31, 2020 is inclusive of a $1.2 million and $0.3 million of contra-expense included in "Selling, general and administrative expenses" and "Restructuring and other expense", respectively, which is representative of an adjustment to the expected achievement percentage of the Company's 2019 tranche of performance share units from 100% to 0%. Stock-based compensation expense included in "Restructuring and other expense" in the Consolidated Statements of Operations is the result of the accelerated vesting of certain equity awards in connection with various restructuring events and adjustments to expected achievement percentages of performance share units for employees impacted by restructuring actions. These events are described in Note 16, "Business Transformation Program and Restructuring." Stock-based compensation expense by award type is as follows: (in millions) Years Ended December 31, 2020 2019 2018 Stock-based compensation expense: Stock options $ 1.8 $ 1.5 $ 1.5 Restricted stock awards and units 4.0 3.8 3.0 Performance share units (1.1) 2.0 2.5 Total stock-based compensation expense $ 4.7 $ 7.3 $ 7.0 |
Summary of the Company's Stock Option Activity | A summary of the Company's stock option activity for the year ended December 31, 2020 is as follows: (in millions, except weighted average exercise price and contractual life) Options Weighted Weighted Average Remaining Contractual Life (Years) Aggregate Options outstanding as of January 1, 2020 2.0 $ 15.82 5.4 $ 2.1 Granted 0.6 $ 13.99 Exercised (0.2) $ 9.20 Forfeited (0.1) $ 14.64 Canceled (0.2) $ 14.35 Options outstanding as of December 31, 2020 (1) 2.1 $ 15.85 6.2 $ — Options vested or expected to vest as of December 31, 2020 (2) 2.1 $ 15.88 6.1 $ — Options exercisable as of December 31, 2020 1.2 $ 16.66 4.2 $ — (1) The outstanding stock options as of December 31, 2020 have exercise prices ranging from $6.91 to $23.14 per share. (2) The number of options expected to vest is total unvested options less estimated forfeitures. The following represents stock option compensation information: (in millions, except weighted average grant date fair value per option granted) Years Ended December 31, 2020 2019 2018 Weighted average grant date fair value $ 4.66 $ 5.27 $ 6.84 Fair value of options vested $ 1.6 $ 1.5 $ 1.7 Intrinsic value of options exercised $ 0.7 $ 2.8 $ 3.3 Excess tax benefit for tax deductions related to the exercise of stock options $ 0.1 $ 0.9 $ 0.8 Cash received from option exercises, net of tax withholding $ 0.9 $ 2.5 $ 5.1 Tax benefits for stock-option compensation expense $ 0.4 $ 0.3 $ 0.4 |
Schedule of the Assumptions Used to Estimate the Fair Value of Options Granted | The assumptions used in the Black-Scholes option pricing model and the weighted average fair value of option awards granted are as follows: Years Ended December 31, 2020 2019 2018 Expected life (years) 6.0 6.0 6.0 Risk-free interest rate 1.3 % 2.5 % 2.7 % Expected volatility 31.9 % 31.0 % 29.0 % Expected dividend yield — % — % — % |
Summary of Activity for Restricted Stock Units and Performance Shares | The Company's restricted stock activity for the year ended December 31, 2020 is as follows: (in millions, except weighted average grant date fair value) Restricted Stock Weighted Average Grant Date Fair Value Unvested as of January 1, 2020 0.4 $ 15.88 Granted 0.6 $ 10.36 Vested (0.1) $ 15.16 Forfeited (0.1) $ 15.16 Unvested as of December 31, 2020 0.8 $ 11.41 A summary of activity for the Company's PSUs for the year ended December 31, 2020 is as follows: (in millions, except weighted average grant date fair value) Performance Share Units Weighted Unvested as of January 1, 2020 0.4 $ 17.45 Granted 0.3 $ 13.94 Vested (1) (0.1) $ 20.25 Forfeited (0.1) $ 14.90 Unvested as of December 31, 2020 0.5 $ 14.53 (1) The vested PSUs are based on the target amount of the award for the 2018 Program. In accordance with the terms of the underlying award agreements, the actual shares earned and distributed for the three-year performance period ended December 31, 2020 was 7.5% of the target shares granted, rounded up the nearest whole share. |
Schedule of Restricted Stock Units Compensation | The Company's restricted stock expense is as follows: (in millions, except weighted average grant date fair value per award granted) Years Ended December 31, 2020 2019 2018 Weighted average grant date fair value $ 10.36 $ 15.29 $ 18.15 Fair value of awards vested $ 1.3 $ 5.4 $ 8.1 Tax benefits for restricted stock compensation expense $ 0.7 $ 0.7 $ 0.7 |
Schedule of Performance Based Unit Programs | As of December 31, 2020, the following PSU programs were ongoing: Award Date PSUs Outstanding (in millions) Expected Vesting Threshold 2019 Program 0.2 — % 2020 Program 0.2 162 % Total PSUs outstanding 0.4 |
Schedule of Performance Share Unit Compensation | The following represents PSU information for the periods indicated: (in millions, except weighted average grant date fair value per award granted) Years Ended December 31, 2020 2019 2018 Weighted average grant date fair value $ 13.94 $ 15.11 $ 20.25 Fair value of awards vested $ 0.2 $ 2.0 $ 2.6 Tax (expenses) benefits for PSU compensation expense $ (0.3) $ 0.5 $ 0.6 |
Other (Income) Expense _ Net (T
Other (Income) Expense — Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Components of other (income) expense — net | The components of "Other (income) expense — net" in the Consolidated Statements of Operations are summarized as follows: (in millions) Years Ended December 31, 2020 2019 2018 Pension and post-retirement expense $ 2.8 $ 4.6 $ 4.6 Foreign currency transaction (gains) losses (1) (5.7) 0.7 20.1 Amortization of debt issuance costs (2) — — — Other (1.7) (4.4) (0.4) Other (income) expense — net $ (4.6) $ 0.9 $ 24.3 (1) Included in foreign currency transaction losses for the year ended December 31, 2018, is a $10.0 million loss on the foreign currency hedge for the acquisition price of Crem. Refer to Note 3, "Acquisition," for additional discussion. (2) Amortization of debt issuance costs of $5.2 million for the year ended December 31, 2020 is included as a component of "Interest expense" in the Company's Consolidated Statements of Operations. Amortization of debt issuance costs previously included as a component of "Other (income) expense — net" totaling $4.7 million and $5.5 million for the years ended December 31, 2019 and 2018, respectively, have also been reclassified to include as a component of "Interest expense" in the Company's Consolidated Statements of Operations. |
(Loss) Earnings Per Share (Tabl
(Loss) Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Potentially Issuable Shares of Common Stock | As of December 31, 2020, potentially issuable shares of common stock consisted of the following: Potential issuable shares of common stock: Stock options 2,136,827 Unvested restricted stock units 808,363 Unvested performance share units (1) 648,590 Total potential shares of common stock 3,593,780 |
Reconciliation of the Numerator and Denominator used to Compute Basic and Diluted EPS | The components of weighted average basic and diluted shares outstanding are as follows: (in millions, except share and per share data) Years Ended December 31, 2020 2019 2018 Net (loss) earnings $ (7.4) $ 55.9 $ 78.2 Weighted average shares outstanding — Basic 141,491,326 140,953,496 140,023,635 Effect of dilutive securities: Stock options — 224,860 585,270 Unvested restricted stock units — 245,416 437,720 Unvested performance share units — 144,013 342,160 Effect of dilutive securities — 614,289 1,365,150 Weighted average shares outstanding — Diluted 141,491,326 141,567,785 141,388,785 (Loss) earnings per share — Basic $ (0.05) $ 0.40 $ 0.56 (Loss) earnings per share — Diluted $ (0.05) $ 0.39 $ 0.55 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Financial Information Relating to Reportable Segments | The following table presents financial information relating to the Company's geographic business segments, reconciled to "Net sales" and "(Loss) earnings 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) Years Ended December 31, 2020 2019 2018 Net sales: Americas $ 867.0 $ 1,208.4 $ 1,228.4 EMEA 292.6 392.7 385.1 APAC 202.1 252.3 229.1 Elimination of intersegment sales (208.3) (259.5) (252.5) Total net sales $ 1,153.4 $ 1,593.9 $ 1,590.1 Segment Adjusted Operating EBITDA: Americas $ 155.5 $ 237.6 $ 246.4 EMEA 46.2 70.6 78.0 APAC 31.2 40.7 30.9 Total Segment Adjusted Operating EBITDA 232.9 348.9 355.3 Corporate and unallocated expenses (62.0) (62.7) (65.1) Depreciation expense (20.7) (21.1) (18.0) Amortization expense (40.6) (39.8) (37.0) Transaction costs (1) (0.2) (1.1) (7.1) Other items (2) (3.2) (4.5) (5.6) Transformation Program expense (3) (23.3) (35.3) — Separation expense — — (0.1) Restructuring activities (4) (8.2) (9.8) (6.0) (Loss) gain from impairment and disposal of assets — net (11.6) (0.7) 0.4 Earnings from operations 63.1 173.9 216.8 Interest expense (81.4) (97.3) (94.5) Loss on modification or extinguishment of debt — — (9.0) Other income (expense) — net 4.6 (0.9) (24.3) (Loss) earnings before income taxes $ (13.7) $ 75.7 $ 89.0 (1) Transaction costs are associated with acquisition and integrated-related activities. Transaction costs recorded in "Cost of sales" include $0.1 million and $1.9 million related to inventory fair value purchase accounting adjustments for the years ended December 31, 2019 and 2018, respectively. Professional services and other direct acquisition and integration costs recorded in "Selling, general and administrative expenses" were $0.2 million, $1.0 million, and $5.2 million for the years ended December 31, 2020, 2019, and 2018, respectively. (2) Other items are costs which are not representative of the Company's operational performance. For the year ended December 31, 2020, other items includes an expense of $3.1 million for amounts due for customs duties, fees and interest on previously imported products, which are included in "Restructuring and other expenses" in the Consolidated Statements of Operations and $0.1 million of professional fees for recovery of misappropriated funds within the Crem business related to the 2018 matter. Refer to Note 13, "Contingencies and Significant Estimates" for discussion of the impact on the Consolidated Statements of Operations. For the year ended December 31, 2019, the amount includes certain costs related to concluded litigation and other professional fees. For the year ended December 31, 2018, these costs include a $3.7 million loss on misappropriation of funds within the Crem business, $1.3 million related to the costs associated with the restatement of previously issued consolidated financial statements in the Company's Form 10-K/A for the year ended December 31, 2017 and $0.6 million of other professional fees. Unless otherwise noted, all such amounts are included within "Selling, general and administrative expenses" in the Consolidated Statements of Operations. (3) Transformation Program expense includes consulting and other costs associated with executing the Company's Transformation Program initiatives. Refer to Note 16, "Business Transformation Program and Restructuring," for discussion of the impact on the Consolidated Statements of Operations. (4) Restructuring activities include costs associated with actions to improve operating efficiencies and rationalization of the Company's cost structure. Refer to Note 16, "Business Transformation Program and Restructuring," for discussion of the impact on the Consolidated Statements of Operations. Adjusted Operating EBITDA % by segment (5) : Americas 17.9 % 19.7 % 20.1 % EMEA 15.8 % 18.0 % 20.3 % APAC 15.4 % 16.1 % 13.5 % (5) Adjusted Operating EBITDA % is calculated by dividing Adjusted Operating EBITDA by net sales for each respective segment. (in millions) Years Ended December 31, 2020 2019 2018 Third-party net sales by geographic area (6) : United States $ 725.0 $ 991.8 $ 995.0 Other Americas 60.4 97.8 112.0 EMEA 217.5 308.9 300.7 APAC 150.5 195.4 182.4 Total net sales by geographic area $ 1,153.4 $ 1,593.9 $ 1,590.1 (6) Net sales presented in this table are attributed to geographic regions based on location of customer. Capital expenditures: Americas $ 14.5 $ 24.3 $ 13.7 EMEA 1.5 2.9 1.8 APAC 1.6 2.6 3.0 Corporate 2.5 4.1 2.9 Total capital expenditures $ 20.1 $ 33.9 $ 21.4 Depreciation: Americas $ 11.5 $ 14.1 $ 12.1 EMEA 3.1 3.2 3.0 APAC 3.4 2.7 2.4 Corporate 3.6 1.3 0.5 Total depreciation $ 21.6 $ 21.3 $ 18.0 |
Property Plant and Equipment by Geographic Area | (in millions) As of December 31, 2020 2019 Property, plant and equipment — net by geographic area: United States $ 79.0 $ 78.8 Other Americas 24.9 21.6 EMEA 11.3 12.1 APAC 13.9 15.0 Total property, plant and equipment $ 129.1 $ 127.5 Assets by geographic business segment: Americas $ 1,488.0 $ 1,533.9 EMEA 347.6 349.8 APAC 209.0 211.8 Corporate 97.0 69.8 Total assets $ 2,141.6 $ 2,165.3 |
Sales Information by Geographic Area | Net sales by product class and geographic business segment are as follows: (in millions) Year Ended December 31, 2020 Commercial Foodservice Equipment Aftermarket Parts and Support Total Americas $ 656.1 $ 118.5 $ 774.6 EMEA 180.0 43.5 223.5 APAC 130.2 25.1 155.3 Total net sales $ 966.3 $ 187.1 $ 1,153.4 (in millions) Year Ended December 31, 2019 Commercial Foodservice Equipment Aftermarket Parts and Support Total Americas $ 896.3 $ 179.0 $ 1,075.3 EMEA 265.2 48.0 313.2 APAC 174.3 31.1 205.4 Total net sales $ 1,335.8 $ 258.1 $ 1,593.9 (in millions) Year Ended December 31, 2018 Commercial Foodservice Equipment Aftermarket Parts and Support Total Americas $ 907.0 $ 183.9 $ 1,090.9 EMEA 258.8 48.6 307.4 APAC 163.2 28.6 191.8 Total net sales $ 1,329.0 $ 261.1 $ 1,590.1 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data | The following table presents financial data for each of the quarters for the years ended December 31, 2020 and 2019: (in millions, except per share data) 2020 (1) First Second Third Fourth Net sales $ 328.9 $ 206.0 $ 298.5 $ 320.0 Gross profit $ 114.8 $ 68.4 $ 105.3 $ 121.5 Earnings from operations $ 0.6 $ 0.7 $ 21.2 $ 40.6 Net (loss) earnings $ (15.1) $ (17.4) $ 4.9 $ 20.2 Per share data: (Loss) earnings per share — Basic $ (0.11) $ (0.12) $ 0.03 $ 0.14 (Loss) earnings per share — Diluted $ (0.11) $ (0.12) $ 0.03 $ 0.14 (1) In March 2020, the World Health Organization declared the outbreak of COVID-19 as a pandemic, which continues to spread throughout the United States and the world. The pandemic, along with the measures implemented by governmental authorities and other third-parties in response, has caused disruption in commercial foodservice equipment markets across the geographies in which the Company operates. The COVID-19 pandemic has decreased demand for commercial foodservice equipment and aftermarket parts and the related economic disruption has negatively impacted the Company's results of operations during each quarter of 2020. (in millions, except per share data) 2019 First (1) Second Third Fourth Net sales $ 375.3 $ 426.3 $ 410.5 $ 381.8 Gross profit $ 126.5 $ 156.3 $ 150.9 $ 133.2 Earnings from operations $ 24.5 $ 57.2 $ 54.8 $ 37.4 Net (loss) earnings $ (2.6) $ 20.0 $ 20.1 $ 18.4 Per share data: (Loss) earnings per share — Basic $ (0.02) $ 0.14 $ 0.14 $ 0.13 (Loss) earnings per share — Diluted $ (0.02) $ 0.14 $ 0.14 $ 0.13 (1) The Company's net loss in the first quarter of 2019 is primarily the result of increased professional fees, consisting primarily of third-party consulting costs incurred in connection with the operational review performed prior to the execution of the Company's Transformation Program launch in May 2019 and increased restructuring expense resulting from the global workforce reduction and limited executive management restructuring action completed during the quarter. Refer to Note 16, "Business Transformation Program and Restructuring," for further information. |
Subsidiary Guarantors of Seni_2
Subsidiary Guarantors of Senior Notes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Consolidating Statement of Operations | WELBILT, INC. Consolidating Statement of Operations For the year ended December 31, 2020 (in millions) Parent Guarantor Non- Consolidating Adjustments Consolidated Net sales $ — $ 796.5 $ 702.8 $ (345.9) $ 1,153.4 Cost of sales — 618.0 471.3 (345.9) 743.4 Gross profit — 178.5 231.5 — 410.0 Selling, general and administrative expenses 63.2 109.7 112.4 — 285.3 Amortization expense — 28.3 10.8 — 39.1 Restructuring and other expense 1.3 4.8 4.8 — 10.9 Loss from impairment and disposal of assets — net — 0.4 11.2 — 11.6 (Loss) earnings from operations (64.5) 35.3 92.3 — 63.1 Interest expense 79.9 0.7 0.8 — 81.4 Other (income) expense — net (18.7) (17.4) 31.5 — (4.6) Equity in earnings of subsidiaries 84.9 46.9 — (131.8) — (Loss) earnings before income taxes (40.8) 98.9 60.0 (131.8) (13.7) Income tax (benefit) expense (33.4) 14.0 13.1 — (6.3) Net (loss) earnings $ (7.4) $ 84.9 $ 46.9 $ (131.8) $ (7.4) Total other comprehensive income, net of tax 21.9 522.0 521.0 (1,042.9) 22.0 Comprehensive income $ 14.5 $ 606.9 $ 567.9 $ (1,174.7) $ 14.6 WELBILT, INC. Consolidating Statement of Operations For the year ended December 31, 2019 (in millions) Parent Guarantor Non- Consolidating Adjustments Consolidated Net sales $ — $ 1,104.8 $ 951.2 $ (462.1) $ 1,593.9 Cost of sales 3.6 838.8 646.7 (462.1) 1,027.0 Gross profit (3.6) 266.0 304.5 — 566.9 Selling, general and administrative expenses 85.0 137.6 121.6 — 344.2 Amortization expense — 28.5 10.2 — 38.7 Restructuring expense 2.6 2.7 4.1 — 9.4 Loss from impairment or disposal of assets - net 0.1 0.3 0.3 — 0.7 (Loss) earnings from operations (91.3) 96.9 168.3 — 173.9 Interest expense 92.8 0.9 3.6 — 97.3 Other (income) expense — net (18.9) (26.7) 46.5 — 0.9 Equity in earnings of subsidiaries 189.3 88.1 — (277.4) — Earnings before income taxes 24.1 210.8 118.2 (277.4) 75.7 Income tax (benefit) expense (31.8) 21.5 30.1 — 19.8 Net earnings $ 55.9 $ 189.3 $ 88.1 $ (277.4) $ 55.9 Total other comprehensive income (loss), net of tax 0.1 (26.4) (23.5) 49.9 0.1 Comprehensive income $ 56.0 $ 162.9 $ 64.6 $ (227.5) $ 56.0 WELBILT, INC. Consolidating Statement of Operations For the year ended December 31, 2018 (in millions) Parent Guarantor Non- Consolidating Adjustments Consolidated Net sales $ — $ 1,110.8 $ 937.8 $ (458.5) $ 1,590.1 Cost of sales 21.2 836.8 621.4 (458.5) 1,020.9 Gross profit (21.2) 274.0 316.4 — 569.2 Selling, general and administrative expenses 49.9 129.1 130.8 — 309.8 Amortization expense — 28.5 8.5 — 37.0 Restructuring expense 1.6 1.2 3.2 — 6.0 (Gain) loss from disposal of assets — net — (0.5) 0.1 — (0.4) (Loss) earnings from operations (72.7) 115.7 173.8 — 216.8 Interest expense 86.1 1.0 7.4 — 94.5 Loss on modification or extinguishment of debt 9.0 — — — 9.0 Other (income) expense — net (12.3) (29.6) 66.2 — 24.3 Equity in earnings of subsidiaries 203.7 71.2 — (274.9) — Earnings before income taxes 48.2 215.5 100.2 (274.9) 89.0 Income tax (benefit) expense (30.0) 11.8 29.0 — 10.8 Net earnings $ 78.2 $ 203.7 $ 71.2 $ (274.9) $ 78.2 Total other comprehensive loss, net of tax (9.6) (19.5) (23.3) 42.8 (9.6) Comprehensive income $ 68.6 $ 184.2 $ 47.9 $ (232.1) $ 68.6 |
Consolidating Balance Sheet | WELBILT, INC. Consolidating Balance Sheet As of December 31, 2020 (in millions) Parent Guarantor Non- Consolidating Adjustments Consolidated Assets Current assets: Cash and cash equivalents $ 8.6 $ — $ 116.6 $ (0.2) $ 125.0 Restricted cash — — 0.4 — 0.4 Accounts receivable — net 0.4 72.0 93.5 — 165.9 Inventories — net — 83.4 97.2 — 180.6 Prepaids and other current assets 24.2 2.5 23.4 — 50.1 Total current assets 33.2 157.9 331.1 (0.2) 522.0 Property, plant and equipment — net 14.2 70.6 44.3 — 129.1 Operating lease right-of-use assets 2.2 3.9 41.4 — 47.5 Goodwill — 832.4 110.5 — 942.9 Other intangible assets — net 0.2 315.6 153.8 — 469.6 Intercompany long-term notes receivable — 5.8 9.9 (15.7) — Due from affiliates — 3,509.9 — (3,509.9) — Investment in subsidiaries 4,485.8 — — (4,485.8) — Other non-current assets 8.3 4.4 17.8 — 30.5 Total assets $ 4,543.9 $ 4,900.5 $ 708.8 $ (8,011.6) $ 2,141.6 Liabilities and equity Current liabilities: Trade accounts payable $ — $ 44.0 $ 42.5 $ (0.1) $ 86.4 Accrued expenses and other liabilities 33.6 66.1 64.5 — 164.2 Current portion of long-term debt and finance leases — 0.4 0.6 — 1.0 Product warranties — 19.7 10.2 — 29.9 Total current liabilities 33.6 130.2 117.8 (0.1) 281.5 Long-term debt and finance leases 1,406.7 0.3 0.8 — 1,407.8 Deferred income taxes 43.4 — 33.1 — 76.5 Pension and postretirement health liabilities 12.9 10.2 4.7 — 27.8 Intercompany long-term notes payable 15.7 — — (15.7) — Due to affiliates 2,743.0 — 766.9 (3,509.9) — Investment in subsidiaries — 254.2 — (254.2) — Operating lease liabilities 2.1 2.3 33.3 — 37.7 Other long-term liabilities 13.4 17.5 6.4 — 37.3 Total non-current liabilities 4,237.2 284.5 845.2 (3,779.8) 1,587.1 Total equity (deficit): Total equity (deficit) 273.1 4,485.8 (254.2) (4,231.7) 273.0 Total liabilities and equity $ 4,543.9 $ 4,900.5 $ 708.8 $ (8,011.6) $ 2,141.6 WELBILT, INC. Consolidating Balance Sheet As of December 31, 2019 (in millions) 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 7.0 20.5 6.3 (0.1) 33.7 Total non-current liabilities 4,148.3 334.0 856.5 (3,758.2) 1,580.6 Total equity (deficit) 253.3 4,400.9 (300.9) (4,099.9) 253.4 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 For the year ended December 31, 2020 (in millions) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash flows from operating activities Net cash (used in) provided by operating activities $ (74.6) $ 77.9 $ 11.9 $ (0.2) $ 15.0 Cash flows from investing activities Capital expenditures (2.6) (9.4) (8.1) — (20.1) Acquisition of intangible assets — (0.2) — — (0.2) Other (3.9) — — — (3.9) Intercompany investment — (68.3) 20.5 47.8 — Net cash (used in) provided by investing activities (6.5) (77.9) 12.4 47.8 (24.2) Cash flows from financing activities Proceeds from long-term debt 196.5 — 22.6 — 219.1 Repayments on long-term debt and finance leases (163.6) (0.7) (54.4) — (218.7) Debt issuance costs (2.1) — — — (2.1) Exercises of stock options 1.2 — — — 1.2 Payments on tax withholdings for equity awards (0.8) — — — (0.8) Intercompany financing 47.8 — — (47.8) — Net cash provided by (used in) financing activities 79.0 (0.7) (31.8) (47.8) (1.3) Effect of exchange rate changes on cash — — 5.2 — 5.2 Net decrease in cash and cash equivalents and restricted cash (2.1) (0.7) (2.3) (0.2) (5.3) Balance at beginning of period 10.7 0.7 119.3 — 130.7 Balance at end of period $ 8.6 $ — $ 117.0 $ (0.2) $ 125.4 WELBILT, INC. Consolidating Statement of Cash Flows For the year ended December 31, 2019 (in millions) Parent Guarantor Non- Consolidating Adjustments Consolidated Cash flows from operating activities Net cash used in operating activities $ (158.3) $ (11.2) $ (100.2) $ — $ (269.7) Cash flows from investing activities Cash receipts on beneficial interest in sold receivables — 75.8 204.9 — 280.7 Capital expenditures (4.2) (20.5) (9.2) — (33.9) Proceeds from maturity of short-term investment — — 32.0 — 32.0 Other 1.1 — — — 1.1 Intercompany investment — (42.2) (23.4) 65.6 — Net cash (used in) provided by investing activities (3.1) 13.1 204.3 65.6 279.9 Cash flows from financing activities Proceeds from long-term debt 410.0 — — — 410.0 Repayments on long-term debt and finance leases (304.5) (0.9) (43.0) — (348.4) Repayment of short-term borrowings — — (15.0) — (15.0) Payment of contingent consideration — (0.8) — — (0.8) Exercises of stock options 3.2 — — — 3.2 Payments on tax withholdings for equity awards (2.4) — — — (2.4) Intercompany financing 65.6 — — (65.6) — Net cash provided by (used in) financing activities 171.9 (1.7) (58.0) (65.6) 46.6 Effect of exchange rate changes on cash — — 0.7 — 0.7 Net increase in cash and cash equivalents and restricted cash 10.5 0.2 46.8 — 57.5 Balance at beginning of period 0.2 0.5 72.5 — 73.2 Balance at end of period $ 10.7 $ 0.7 $ 119.3 $ — $ 130.7 WELBILT, INC. Consolidating Statement of Cash Flows For the year ended December 31, 2018 (in millions) Parent Guarantor Non- Consolidating Adjustments Consolidated Cash flows from operating activities Net cash (used in) provided by operating activities $ (163.5) $ 161.8 $ (447.6) $ 0.8 $ (448.5) Cash flows from investing activities Cash receipts on beneficial interest in sold receivables — — 576.4 — 576.4 Capital expenditures (2.9) (11.1) (7.4) — (21.4) Acquisition of intangible assets — (2.8) — — (2.8) Business acquisition, net of cash acquired — — (215.6) — (215.6) Proceeds from maturity of short-term investment — — 20.7 — 20.7 Purchase of short-term investment — — (35.0) — (35.0) Settlement of foreign exchange contract — — (10.0) — (10.0) Other 1.2 — — — 1.2 Intercompany investment — (145.6) 4.9 140.7 — Net cash (used in) provided by investing activities (1.7) (159.5) 334.0 140.7 313.5 Cash flows from financing activities Proceeds from long-term debt 300.5 — 175.0 — 475.5 Repayments on long-term debt and finance leases (281.0) (0.4) (101.8) — (383.2) Proceeds from short-term borrowings — — 30.0 — 30.0 Repayment of short-term borrowings — — (15.0) — (15.0) Debt issuance costs (6.8) — — — (6.8) Payment of contingent consideration — (1.4) — — (1.4) Exercises of stock options 6.2 — — — 6.2 Payments on tax withholdings for equity awards (3.0) — — — (3.0) Intercompany financing 140.7 — — (140.7) — Net cash provided by (used in) financing activities 156.6 (1.8) 88.2 (140.7) 102.3 Effect of exchange rate changes on cash — — (2.9) — (2.9) Net (decrease) increase in cash and cash equivalents and restricted cash (8.6) 0.5 (28.3) 0.8 (35.6) Balance at beginning of period 8.8 — 100.8 (0.8) 108.8 Balance at end of period $ 0.2 $ 0.5 $ 72.5 $ — $ 73.2 |
Business and Organization (Deta
Business and Organization (Details) Distributor in Thousands | 12 Months Ended |
Dec. 31, 2020manufacturing_facilitysegmentDistributor | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of manufacturing facilities operating | manufacturing_facility | 19 |
Number of Distributors | Distributor | 5 |
Number of segments | segment | 3 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) | 12 Months Ended | |||||
Dec. 31, 2020USD ($)Analysis_Per_Year | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Certificate of deposit, original maturity term | 12 months | |||||
Average collection cycle for accounts receivable | 60 days | |||||
Percentage of FIFO inventory | 90.20% | 91.70% | ||||
Excess of FIFO costs over LIFO value | $ 4,300,000 | $ 4,200,000 | ||||
Assets held-for-sale | $ 0 | 0 | ||||
Frequency of Product Liability Reserve Analysis | Analysis_Per_Year | 2 | |||||
Payment terms | 30 days | |||||
Standard product warranty, low end of range | 12 months | |||||
Standard product warranty, high end of range | 60 months | |||||
Government assistance in the form of cash, cost abatements and retention credits | $ 14,600,000 | |||||
Receivable related to government assistance | 2,400,000 | |||||
Research and development costs | 36,100,000 | 41,300,000 | $ 37,300,000 | |||
Advertising costs | 8,500,000 | 17,400,000 | 15,200,000 | |||
Total equity (deficit) | $ 273,000,000 | 253,400,000 | 186,400,000 | $ 103,600,000 | ||
Cumulative Effect, Period of Adoption, Adjustment | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total equity (deficit) | (400,000) | $ 200,000 | [1] | $ 1,100,000 | [2] | |
Other long-term liabilities | Adjustment | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Deferred compensation liability | (400,000) | |||||
Treasury Stock | Adjustment | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Deferred compensation liability | $ 400,000 | |||||
Minimum | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Original maturity term of investment classified as short-term investments | 3 months | |||||
Maximum | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Original maturity term of investment classified as short-term investments | 1 year | |||||
[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. | |||||
[2] | Effective January 1, 2018, the Company adopted ASU 2014-09 "Revenue from Contracts with Customers (Topic 606)" with additional updates subsequently issued (collectively, "ASU 2014-09"). The cumulative effect of the changes made to the consolidated statement of equity as of January 1, 2018 for the adoption of ASU 2014-09 is related to the establishment of right to return assets in conjunction with its product return policy. |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Useful Lives of Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Minimum | Building and improvements | |
Estimated useful lives of property, plant and equipment | |
Useful lives property, plant and equipment | 2 years |
Minimum | Machinery, equipment and tooling | |
Estimated useful lives of property, plant and equipment | |
Useful lives property, plant and equipment | 2 years |
Minimum | Furniture and fixtures | |
Estimated useful lives of property, plant and equipment | |
Useful lives property, plant and equipment | 3 years |
Minimum | Computer hardware and software for internal use | |
Estimated useful lives of property, plant and equipment | |
Useful lives property, plant and equipment | 2 years |
Maximum | Building and improvements | |
Estimated useful lives of property, plant and equipment | |
Useful lives property, plant and equipment | 40 years |
Maximum | Machinery, equipment and tooling | |
Estimated useful lives of property, plant and equipment | |
Useful lives property, plant and equipment | 20 years |
Maximum | Furniture and fixtures | |
Estimated useful lives of property, plant and equipment | |
Useful lives property, plant and equipment | 15 years |
Maximum | Computer hardware and software for internal use | |
Estimated useful lives of property, plant and equipment | |
Useful lives property, plant and equipment | 10 years |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies - Useful Lives of Other Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Life (in years) | 7 years |
Engineering drawings | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Life (in years) | 15 years |
Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Life (in years) | 7 years |
Customer relationships | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Life (in years) | 10 years |
Customer relationships | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Life (in years) | 20 years |
Design libraries | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Life (in years) | 7 years |
Design libraries | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Life (in years) | 20 years |
Software to be sold | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Life (in years) | 3 years |
Software to be sold | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Life (in years) | 4 years |
Patents | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Life (in years) | 15 years |
Patents | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Life (in years) | 10 years |
Patents | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Life (in years) | 20 years |
Basis of Presentation and Sum_7
Basis of Presentation and Summary of Significant Accounting Policies - Government Assistance (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Unusual or Infrequent Item, or Both [Line Items] | |
Government assistance received in the form of cash, cost abatements and retention credits | $ 12.7 |
Inventories | |
Unusual or Infrequent Item, or Both [Line Items] | |
Government assistance received in the form of cash, cost abatements and retention credits | 1.9 |
Cost of sales | |
Unusual or Infrequent Item, or Both [Line Items] | |
Government assistance received in the form of cash, cost abatements and retention credits | 7.1 |
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 | $ 5.6 |
Acquisition - Narrative (Detail
Acquisition - Narrative (Details) € in Millions, kr in Millions, $ in Millions | Apr. 19, 2018USD ($) | Apr. 19, 2018SEK (kr) | Apr. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | Mar. 31, 2020USD ($) | Dec. 31, 2018EUR (€) |
Business Acquisition [Line Items] | ||||||||||
Professional services and other direct acquisition and integration costs | $ 0.2 | $ 1.1 | $ 7.1 | |||||||
Estimated loss from diversion of funds | 3.1 | $ 3.1 | ||||||||
Loss on misappropriation of funds | 3.7 | |||||||||
Goodwill | $ 935.6 | 942.9 | 933.1 | 935.6 | ||||||
Diversion of funds | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Estimated loss from diversion of funds | € | € 4 | |||||||||
Amount recovered | € | € 1 | |||||||||
Loss on misappropriation of funds | 3.7 | |||||||||
EMEA | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Goodwill | 83.1 | 89.3 | 80.6 | 83.1 | ||||||
APAC | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Goodwill | 19.9 | 21 | 19.9 | 19.9 | ||||||
Crem | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Share capital acquired (as a percent) | 100.00% | |||||||||
Total purchase price | $ 220.3 | kr 1,800 | ||||||||
Cash payment | 159.8 | |||||||||
Interest payment | 2.4 | |||||||||
Repayment of indebtedness and shareholder loans | 60.5 | |||||||||
Professional services and other direct acquisition and integration costs | $ 0.2 | $ 0.6 | 5.2 | |||||||
Net sales | 62 | |||||||||
Loss from operations | 2.8 | |||||||||
Goodwill | 97 | |||||||||
Crem | EMEA | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Goodwill | 84.2 | |||||||||
Crem | APAC | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Goodwill | $ 12.8 | |||||||||
Crem | Diversion of funds | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Loss on misappropriation of funds | $ 3.4 | |||||||||
Foreign currency exchange contracts | Not Designated as Hedging Instrument | Crem | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Loss on derivative instrument | $ 10 | $ 10 |
Acquisition - Consideration Pai
Acquisition - Consideration Paid and Identified Assets Acquired and Liabilities Assumed (Details) kr in Millions, $ in Millions | Apr. 19, 2018USD ($) | Apr. 19, 2018SEK (kr) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Recognized amounts of identifiable assets acquired and (liabilities assumed), at fair value: | |||||
Allocation to goodwill | $ 942.9 | $ 933.1 | $ 935.6 | ||
Crem | |||||
Business Acquisition [Line Items] | |||||
Total purchase price | $ 220.3 | kr 1,800 | |||
Less: cash acquired | 4.7 | ||||
Total purchase price, net of cash acquired | 215.6 | ||||
Recognized amounts of identifiable assets acquired and (liabilities assumed), at fair value: | |||||
Cash | 4.7 | ||||
Accounts receivable | 17.2 | ||||
Inventories | 16.9 | ||||
Prepaids and other current assets | 1.9 | ||||
Property, plant and equipment | 4.9 | ||||
Other intangible assets | 131.2 | ||||
Other non-current assets | 2.1 | ||||
Trade accounts payable | (11.4) | ||||
Accrued expenses and other liabilities | (6) | ||||
Deferred income taxes | (32.8) | ||||
Pension and postretirement health obligations | (0.4) | ||||
Other long-term liabilities | (5) | ||||
Fair value of assets acquired and liabilities assumed | 123.3 | ||||
Allocation to goodwill | $ 97 |
Acquisition - Preliminary Fair
Acquisition - Preliminary Fair Value Estimates of Intangible Assets Other than Goodwill Acquired (Details) - USD ($) $ in Millions | Apr. 19, 2018 | Dec. 31, 2020 |
Business Acquisition [Line Items] | ||
Useful Life (in years) | 7 years | |
Customer relationships | ||
Business Acquisition [Line Items] | ||
Useful Life (in years) | 7 years | |
Customer relationships | Minimum | ||
Business Acquisition [Line Items] | ||
Useful Life (in years) | 10 years | |
Customer relationships | Maximum | ||
Business Acquisition [Line Items] | ||
Useful Life (in years) | 20 years | |
Design libraries | Minimum | ||
Business Acquisition [Line Items] | ||
Useful Life (in years) | 7 years | |
Design libraries | Maximum | ||
Business Acquisition [Line Items] | ||
Useful Life (in years) | 20 years | |
Crem | ||
Business Acquisition [Line Items] | ||
Total definite-lived intangible assets | $ 84.8 | |
Trade name | 46.4 | |
Total intangible assets | $ 131.2 | |
Weighted Average Amortization Period (in years) | 10 years 1 month 6 days | |
Crem | Customer relationships | ||
Business Acquisition [Line Items] | ||
Total definite-lived intangible assets | $ 64.2 | |
Useful Life (in years) | 10 years | |
Weighted Average Amortization Period (in years) | 10 years | |
Crem | Design libraries | ||
Business Acquisition [Line Items] | ||
Total definite-lived intangible assets | $ 20.6 | |
Weighted Average Amortization Period (in years) | 10 years 4 months 24 days | |
Crem | Design libraries | Minimum | ||
Business Acquisition [Line Items] | ||
Useful Life (in years) | 7 years | |
Crem | Design libraries | Maximum | ||
Business Acquisition [Line Items] | ||
Useful Life (in years) | 20 years |
Accounts Receivable Securitiz_2
Accounts Receivable Securitization (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2019 | Mar. 13, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
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 proceeds collected on reacquired trade receivables | $ 149,700,000 |
Inventories - Net (Details)
Inventories - Net (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Inventories — net: | ||
Raw materials | $ 85.6 | $ 81.4 |
Work-in-process | 13.9 | 14.2 |
Finished goods | 85.4 | 95 |
Total inventories at FIFO cost | 184.9 | 190.6 |
LIFO Reserve | (4.3) | (4.2) |
Total inventories — net | $ 180.6 | $ 186.4 |
Property, Plant and Equipment_3
Property, Plant and Equipment - Net (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment | ||
Total cost | $ 430.2 | $ 421.9 |
Less accumulated depreciation | (301.1) | (294.4) |
Total property, plant and equipment — net | 129.1 | 127.5 |
Land | ||
Property, Plant and Equipment | ||
Total cost | 9.7 | 9.7 |
Building and improvements | ||
Property, Plant and Equipment | ||
Total cost | 99.8 | 93.2 |
Machinery, equipment and tooling | ||
Property, Plant and Equipment | ||
Total cost | 231.7 | 223.3 |
Furniture and fixtures | ||
Property, Plant and Equipment | ||
Total cost | 8.1 | 7.6 |
Computer hardware and software for internal use | ||
Property, Plant and Equipment | ||
Total cost | 66.8 | 66.1 |
Construction in progress | ||
Property, Plant and Equipment | ||
Total cost | $ 14.1 | $ 22 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Net - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment charges, indefinite-lived | $ 0 | ||||
Amortization expense | $ 40,600,000 | $ 39,800,000 | $ 37,000,000 | ||
Amortization of Intangible Assets | $ 40,600,000 | 39,800,000 | 37,000,000 | ||
Estimated useful lives | 7 years | ||||
EMEA | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment charges, indefinite-lived | $ 11,100,000 | ||||
APAC | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment charges, indefinite-lived | $ 0 | ||||
Trademarks and trade names | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment charges, indefinite-lived | $ 11,100,000 | ||||
Indefinite-lived intangibles, net book value | 212,000,000 | 217,600,000 | $ 0 | ||
Trademarks and trade names | Americas | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Indefinite-lived intangibles, net book value | 130,600,000 | ||||
Trademarks and trade names | EMEA | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Indefinite-lived intangibles, net book value | 73,600,000 | ||||
Trademarks and trade names | APAC | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Indefinite-lived intangibles, net book value | 7,800,000 | ||||
Software to be sold | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization of Intangible Assets | $ 1,500,000 | $ 1,100,000 | |||
Customer relationships | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Estimated useful lives | 7 years | ||||
Patents | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Estimated useful lives | 15 years | ||||
Other intangibles | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Estimated useful lives | 4 years |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Net - Changes in the Carrying Amount of Goodwill by Geographic Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | |||
Net beginning balance | $ 933.1 | $ 935.6 | |
Foreign currency impact | 9.8 | (2.5) | |
Net ending balance | 942.9 | 933.1 | |
Accumulated impairment loss | (515.7) | (515.7) | $ (515.7) |
Americas | |||
Goodwill [Roll Forward] | |||
Net beginning balance | 832.6 | 832.6 | |
Foreign currency impact | 0 | 0 | |
Net ending balance | 832.6 | 832.6 | |
Accumulated impairment loss | (312.2) | (312.2) | (312.2) |
EMEA | |||
Goodwill [Roll Forward] | |||
Net beginning balance | 80.6 | 83.1 | |
Foreign currency impact | 8.7 | (2.5) | |
Net ending balance | 89.3 | 80.6 | |
Accumulated impairment loss | (203.5) | (203.5) | $ (203.5) |
APAC | |||
Goodwill [Roll Forward] | |||
Net beginning balance | 19.9 | 19.9 | |
Foreign currency impact | 1.1 | 0 | |
Net ending balance | $ 21 | $ 19.9 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Net - Gross Carrying Amount and Accumulated Amortization of Intangible Assets other than Goodwill (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Intangible asset balances by major asset class | ||||
Intangible assets, gross carrying amount | $ 881,100,000 | $ 863,100,000 | ||
Indefinite-lived, impairment charges | $ 0 | |||
Intangible assets, impairment charges | (11,100,000) | |||
Finite-lived intangibles, accumulated amortization | (400,400,000) | (355,400,000) | ||
Intangible assets, net book value | 469,600,000 | 507,700,000 | ||
Customer relationships | ||||
Intangible asset balances by major asset class | ||||
Finite-lived intangibles, gross carrying amount | 479,100,000 | 472,800,000 | ||
Finite-lived, impairment charges | 0 | |||
Finite-lived intangibles, accumulated amortization | (271,600,000) | (243,600,000) | ||
Finite-lived intangibles, net book value | 207,500,000 | 229,200,000 | ||
Other intangibles | ||||
Intangible asset balances by major asset class | ||||
Finite-lived intangibles, gross carrying amount | 173,100,000 | 166,900,000 | ||
Finite-lived, impairment charges | 0 | |||
Finite-lived intangibles, accumulated amortization | (126,600,000) | (109,800,000) | ||
Finite-lived intangibles, net book value | 46,500,000 | 57,100,000 | ||
Patents | ||||
Intangible asset balances by major asset class | ||||
Finite-lived intangibles, gross carrying amount | 5,800,000 | 5,800,000 | ||
Finite-lived, impairment charges | 0 | |||
Finite-lived intangibles, accumulated amortization | (2,200,000) | (2,000,000) | ||
Finite-lived intangibles, net book value | 3,600,000 | 3,800,000 | ||
Trademarks and trade names | ||||
Intangible asset balances by major asset class | ||||
Indefinite-lived, gross carrying amount | 223,100,000 | 217,600,000 | ||
Indefinite-lived, impairment charges | (11,100,000) | |||
Indefinite-lived intangibles, net book value | $ 212,000,000 | $ 217,600,000 | $ 0 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Net - Schedule of Estimated Amortization of Definite-Lived Intangible Assets (Details) $ in Millions | Dec. 31, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2021 | $ 45.1 |
2022 | 40.4 |
2023 | 32.7 |
2024 | 31.8 |
2025 | $ 31.8 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Accrued expenses and other liabilities: | ||
Accrued rebates and commissions | $ 40.1 | $ 56.2 |
Miscellaneous accrued expenses | 41.1 | 37.8 |
Employee related expenses | 35.6 | 34.7 |
Interest payable | $ 16.1 | $ 15.8 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesAndOtherLiabilities | us-gaap:AccruedLiabilitiesAndOtherLiabilities |
Operating lease liabilities | $ 9.7 | $ 10 |
Restructuring liabilities | 4 | 6.3 |
Business Transformation Program related expenses | 0.8 | 5.8 |
Derivative liabilities | 0.6 | 5 |
Income and other taxes payable | 5.6 | 11.2 |
Deferred revenues | 2.9 | 3.1 |
Customer deposits | 3.9 | 3.1 |
Pension and postretirement health liabilities | 2.1 | 2.1 |
Product liabilities | 1.7 | 1.3 |
Total accrued expenses and other liabilities | $ 164.2 | $ 192.4 |
Income Taxes - Summary of Earni
Income Taxes - Summary of Earnings before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (73.6) | $ (35.8) | $ (8) |
Foreign | 59.9 | 111.5 | 97 |
(Loss) earnings before income taxes | $ (13.7) | $ 75.7 | $ 89 |
Income Taxes - Schedule of the
Income Taxes - Schedule of the Components of Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current: | |||
Federal and state | $ (14.7) | $ 9 | $ (4.3) |
Foreign | 16.6 | 30.4 | 29.1 |
Total current tax expense | 1.9 | 39.4 | 24.8 |
Deferred: | |||
Federal and state | (1.8) | (15) | (14) |
Foreign | (6.4) | (4.6) | 0 |
Total deferred tax benefit | (8.2) | (19.6) | (14) |
Total: | |||
Federal and state | (16.5) | (6) | (18.3) |
Foreign | 10.2 | 25.8 | 29.1 |
Income tax (benefit) expense | $ (6.3) | $ 19.8 | $ 10.8 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the U.S. Federal Statutory Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax at statutory rate | 21.00% | 21.00% | 21.00% |
State income expense (benefit) | 1.30% | (0.20%) | 0.50% |
Manufacturing and research incentives | 7.10% | (1.20%) | (3.10%) |
Taxes on foreign income | (6.60%) | 8.40% | 7.60% |
Repatriation of foreign income - Tax Act | 0 | 0 | (0.112) |
Global intangible low taxed income - Tax Act | 0.00% | 2.00% | 1.50% |
Foreign derived intangible income | 0.00% | (1.00%) | (1.30%) |
CARES Act net operating loss carryback | 51.20% | 0.00% | 0.00% |
Adjustments for valuation allowances | 1.50% | (2.10%) | (0.20%) |
Unrecognized tax benefits | (19.10%) | (1.90%) | 0.20% |
Discrete adjustments | 0.00% | 0.00% | (2.60%) |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | (8.80%) | 0.50% | 0.70% |
Effective Income Tax Rate Reconciliation,Other Reconciling Items, Percent | (1.60%) | 0.70% | (1.00%) |
Effective tax rate | 46.00% | 26.20% | 12.10% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Operating Loss Carryforwards [Line Items] | |||
Effective tax rate | 46.00% | 26.20% | 12.10% |
CARES Act net operating loss carryback | 51.20% | 0.00% | 0.00% |
Impacts from valuation allowance adjustments | 3.60% | ||
Impacts of manufacturing and research incentives | 8.30% | 1.90% | |
Impacts of unrecognized tax benefits | 17.20% | ||
Impacts of US permanent adjustments | 9.30% | ||
Impacts of foreign income tax | 15.00% | ||
Repatriation of foreign income - Tax Act | 0 | 0 | (0.112) |
Impacts from audit settlements and statute of limitations | 2.10% | ||
Accrued interest and penalties | $ 1.5 | $ 1.3 | |
Liability related to unrecognized tax benefits, including accrued interest and penalties | 9.9 | 4.2 | |
(Benefit) expense for interest and penalties | 0.2 | $ (0.2) | $ 0.2 |
EMEA | |||
Operating Loss Carryforwards [Line Items] | |||
Other deferred tax asset | 0.9 | ||
Foreign Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 199 | ||
Domestic Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $ 134.9 | ||
Minimum | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign statutory income tax rate, percent | 25.00% | 25.00% | |
Unrecognized tax benefits that would impact the effective rate | $ 1.1 | ||
Maximum | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign statutory income tax rate, percent | 30.00% | 30.00% | |
Unrecognized tax benefits that would impact the effective rate | $ 2 |
Income Taxes - Schedule of Sign
Income Taxes - Schedule of Significant Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Non-current deferred tax assets (liabilities): | ||
Inventories | $ 4.3 | $ 3.5 |
Accounts receivable | 0.5 | 0.5 |
Property, plant and equipment | (9) | (6.7) |
Intangible assets | (123.1) | (130.9) |
Deferred employee benefits | 14.8 | 15.2 |
Product warranty reserves | 7.5 | 8.4 |
Product liability reserves | 1.7 | 1.7 |
Operating lease right-of-use assets | (11.8) | (9.9) |
Operating lease liabilities | 11.7 | 9.7 |
Interest carryforwards | 16.2 | 20.6 |
Loss carryforwards | 43.4 | 36.2 |
Credit carryforwards | 6.5 | 0 |
Other | 6.8 | 12.8 |
Non-current deferred tax liabilities | (30.5) | (38.9) |
Less valuation allowance | (30.9) | (28.3) |
Net non-current deferred tax liabilities | (61.4) | (67.2) |
Components of Deferred Tax Assets and Liabilities [Abstract] | ||
Deferred tax liabilities | (76.5) | (81.9) |
Prepaids and other current assets | ||
Components of Deferred Tax Assets and Liabilities [Abstract] | ||
Deferred tax assets | 27.4 | 11.3 |
Other non-current assets | ||
Components of Deferred Tax Assets and Liabilities [Abstract] | ||
Deferred tax assets | 15.1 | 14.7 |
Accrued expenses and other liabilities | ||
Components of Deferred Tax Assets and Liabilities [Abstract] | ||
Deferred tax liabilities | (5.6) | (11.2) |
Other long-term liabilities | ||
Components of Deferred Tax Assets and Liabilities [Abstract] | ||
Deferred tax liabilities | $ (0.1) | $ (0.6) |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 2.9 | $ 11.5 | $ 12.3 |
Additions based on tax positions related to the current year | 2.7 | 0 | 0 |
Additions for tax positions of prior years | 2.9 | 0 | 3.3 |
Reductions for tax positions of prior years | 0 | 0 | (4.1) |
Reductions based on settlements with taxing authorities | 0 | (1.3) | 0 |
Reductions for lapse of statute of limitations | (0.1) | (7.3) | 0 |
Balance at end of year | $ 8.4 | $ 2.9 | $ 11.5 |
Debt - Schedule of Outstanding
Debt - Schedule of Outstanding Debt (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Finance leases | $ 2.2 | $ 2.5 |
Weighted average interest rate, percent | 4.80% | 4.83% |
Total debt and finance leases, including current portion | $ 1,425.2 | $ 1,424.3 |
Finance leases | (1) | (1.2) |
Unamortized debt issuance costs | (16.7) | (20.5) |
Hedge accounting fair value adjustment | 0.3 | 0.5 |
Long-term debt and finance leases | 1,407.8 | 1,403.1 |
Outstanding debt issuance costs, net of amortization | 20.3 | 23 |
Outstanding debt issuance costs, revolving credit facility | 3.6 | 2.5 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt, including current portion | $ 143 | $ 141.8 |
Weighted average interest rate, debt | 4.21% | 5.00% |
Term Loan B Facility | ||
Debt Instrument [Line Items] | ||
Debt, including current portion | $ 855 | $ 855 |
Weighted average interest rate, debt | 3.45% | 5.11% |
9.50% Senior Notes due 2024 | ||
Debt Instrument [Line Items] | ||
Debt, including current portion | $ 425 | $ 425 |
Weighted average interest rate, debt | 9.72% | 9.72% |
Stated interest rate | 9.50% |
Debt - 2016 Credit Agreement (D
Debt - 2016 Credit Agreement (Details) $ in Millions | Mar. 06, 2017 | Mar. 03, 2016 | Apr. 30, 2020USD ($) | Oct. 31, 2018USD ($) | Sep. 30, 2017 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Mar. 31, 2016USD ($) |
Line of Credit Facility [Line Items] | ||||||||||||
Loss on debt extinguishment | $ 0 | $ 0 | $ 2.7 | |||||||||
Revolving Credit Facility | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Debt, including current portion | 143 | 141.8 | ||||||||||
Term Loan B | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Write off of debt issuance costs | 1 | |||||||||||
Repayments of debt | 45 | |||||||||||
Debt, including current portion | 855 | $ 855 | ||||||||||
Line of Credit | Letter of Credit | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Outstanding balance of letters of credit | 1.8 | |||||||||||
Line of Credit | Revolving Credit Facility | Revolving credit facility | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Remaining borrowing capacity | 250 | |||||||||||
Line of Credit | Revolving Credit Facility | Letter of Credit | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Debt, including current portion | $ 7 | |||||||||||
Line of Credit | Amended 2016 Credit Agreement | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Maximum borrowing capacity | $ 1,300 | |||||||||||
Debt issuance costs | $ 12.8 | |||||||||||
Loss on debt extinguishment | 6.3 | |||||||||||
Write off of debt issuance costs | $ 1.7 | |||||||||||
Line of Credit | Amended 2016 Credit Agreement | Term Loan B | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Maximum borrowing capacity | 900 | |||||||||||
Line of Credit | Amended 2016 Credit Agreement | Revolving credit facility | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Maximum borrowing capacity | $ 400 | |||||||||||
Maximum pro forma secured leverage ratio | 3.75 | |||||||||||
Term to comply with financial covenants | 90 days | |||||||||||
Cash balance limit | $ 100 | |||||||||||
Term to use cash in excess of draw restrictions | 10 days | |||||||||||
Carve-out restriction for general investment | $ 25 | |||||||||||
Quarterly fee (in percent) | 0.50% | |||||||||||
Debt issuance costs | $ 2.1 | |||||||||||
Line of Credit | Amended 2016 Credit Agreement | Letter of Credit | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Maximum borrowing capacity | $ 30 | |||||||||||
Line of Credit | Amended 2016 Credit Agreement | Revolving Credit Facility and Term Loans | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Maximum borrowing capacity | $ 275 | |||||||||||
LIBOR | Line of Credit | Revolving Credit Facility | Revolving credit facility | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Basis point spread | 2.50% | 2.25% | ||||||||||
LIBOR | Term Loans | Revolving Credit Facility | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Basis point spread | 2.50% | |||||||||||
Base rate | Revolving Credit Facility | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Alternate base rate | 1.00% | |||||||||||
Base rate | Line of Credit | Revolving Credit Facility | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Basis point spread | 1.00% | |||||||||||
Base rate | Line of Credit | Revolving Credit Facility | Revolving credit facility | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Basis point spread | 1.50% | 1.25% | ||||||||||
Minimum | LIBOR | Revolving Credit Facility | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Basis point spread | 3.00% | 4.75% | ||||||||||
Minimum | LIBOR | Revolving Credit Facility | Revolving credit facility | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Basis point spread | 1.50% | |||||||||||
Minimum | LIBOR | Line of Credit | Revolving Credit Facility | Revolving credit facility | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Basis point spread | 1.50% | |||||||||||
Maximum | LIBOR | Revolving Credit Facility | Revolving credit facility | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Basis point spread | 2.75% | 2.50% | 2.75% | |||||||||
Maximum | LIBOR | Line of Credit | Revolving Credit Facility | Revolving credit facility | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Basis point spread | 2.50% | |||||||||||
Long-term debt and capital leases | Line of Credit | Amended 2016 Credit Agreement | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Debt issuance costs | $ 4.6 | |||||||||||
Other non-current assets | Line of Credit | Amended 2016 Credit Agreement | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Debt issuance costs | $ 1.9 |
Debt - Senior Notes (Details)
Debt - Senior Notes (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Feb. 29, 2016 | |
Debt Instrument [Line Items] | ||
Required debt repurchase price | 101.00% | |
Aggregate principal amount outstanding | 25.00% | |
9.50% Senior Notes due 2024 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 9.50% | |
Senior Notes | 9.50% Senior Notes due 2024 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 9.50% | |
Aggregate principal amount | $ 425 | |
Debt redemption price percentage | 100.00% |
Debt - Senior Note Redemption P
Debt - Senior Note Redemption Prices (Details) - Senior Notes - 9.50% Senior Notes due 2024 | 12 Months Ended |
Dec. 31, 2020 | |
Debt Instrument, Redemption [Line Items] | |
Debt redemption price percentage | 100.00% |
Commencing February 15th, 2020 | |
Debt Instrument, Redemption [Line Items] | |
Debt redemption price percentage | 104.75% |
Commencing February 15th, 2021 | |
Debt Instrument, Redemption [Line Items] | |
Debt redemption price percentage | 102.375% |
2022 and thereafter | |
Debt Instrument, Redemption [Line Items] | |
Debt redemption price percentage | 100.00% |
Debt - Revolving Loan Facility
Debt - Revolving Loan Facility (Details) - Revolving Loan Facility Maturing April 2019 $ in Millions | 1 Months Ended |
Apr. 30, 2018USD ($) | |
LIBOR | |
Line of Credit Facility [Line Items] | |
Basis point spread | 1.90% |
Line of Credit | |
Line of Credit Facility [Line Items] | |
Maximum borrowing capacity | $ 30 |
Debt - Maturities of Debt (Deta
Debt - Maturities of Debt (Details) $ in Millions | Dec. 31, 2020USD ($) |
Debt Disclosure [Abstract] | |
2021 | $ 0 |
2022 | 0 |
2023 | 143 |
2024 | 434 |
2025 | 846 |
Thereafter | 0 |
Total | $ 1,423 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) € in Millions, £ in Millions, kr in Millions, $ in Millions, $ in Millions, $ in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||
Mar. 31, 2020USD ($) | Jun. 30, 2019USD ($) | Apr. 30, 2018USD ($) | Mar. 31, 2017USD ($)swap | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2020EUR (€) | Dec. 31, 2020GBP (£) | Dec. 31, 2020MXN ($) | Dec. 31, 2020SGD ($) | Dec. 31, 2019CAD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2019GBP (£) | Dec. 31, 2019MXN ($) | Dec. 31, 2019SGD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018CAD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2018GBP (£) | Dec. 31, 2018MXN ($) | Dec. 31, 2018SGD ($) | Dec. 31, 2018SEK (kr) | Oct. 31, 2017USD ($) | Mar. 31, 2017EUR (€)swap | |
Derivative [Line Items] | ||||||||||||||||||||||||||
Cash flow hedge unrealized gain to be reclassified in twelve months | $ 0.9 | |||||||||||||||||||||||||
Minimum length of time hedged in cash flow hedge | 15 months | |||||||||||||||||||||||||
Maximum length of time hedged in cash flow hedge | 36 months | |||||||||||||||||||||||||
Settlement of foreign exchange contract | $ 0 | $ 0 | $ 10 | |||||||||||||||||||||||
Designated as Hedging Instrument | Interest rate swap contracts | ||||||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||||||
Number of derivative instruments | swap | 2 | 2 | ||||||||||||||||||||||||
Derivative notional amount | $ 600 | |||||||||||||||||||||||||
Designated as Hedging Instrument | Interest rate swap contracts | Interest Rate Swap, March 2019 | ||||||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||||||
Derivative notional amount | $ 175 | |||||||||||||||||||||||||
Designated as Hedging Instrument | Interest rate swap contracts | Interest Rate Swap, March 2020 | ||||||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||||||
Derivative notional amount | $ 425 | |||||||||||||||||||||||||
Designated as Hedging Instrument | Interest rate swap contracts | Interest Rate Swap, February 2024 | ||||||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||||||
Proceeds from terminated derivative | $ 14 | |||||||||||||||||||||||||
Designated as Hedging Instrument | Cross-currency interest rate swap | ||||||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||||||
Derivative notional amount | € | € 50 | |||||||||||||||||||||||||
Derivative term | 3 years | |||||||||||||||||||||||||
Settlement of foreign exchange contract | $ 4.1 | |||||||||||||||||||||||||
Designated as Hedging Instrument | Foreign currency exchange contracts | ||||||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||||||
Derivative notional amount | $ 6.4 | € 3.3 | £ 6.1 | $ 92.8 | $ 2.3 | $ 8 | € 7.6 | £ 8 | $ 111.3 | $ 2 | $ 11 | € 9.9 | £ 12 | $ 176 | $ 1.5 | |||||||||||
Not Designated as Hedging Instrument | Foreign currency exchange contracts | Crem | ||||||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||||||
Derivative notional amount | $ 223.8 | kr 1,800 | ||||||||||||||||||||||||
Settlement loss | $ (10) | $ (10) |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Outstanding Commodity Contracts (Details) | 12 Months Ended | ||
Dec. 31, 2020Tt | Dec. 31, 2019tT | Dec. 31, 2018tT | |
Designated as Hedging Instrument | Aluminum | |||
Derivative [Line Items] | |||
Commodity units hedged, mass | 0 | 0 | 1,446 |
Designated as Hedging Instrument | Copper | |||
Derivative [Line Items] | |||
Commodity units hedged, mass | 0 | 0 | 546 |
Designated as Hedging Instrument | Steel | |||
Derivative [Line Items] | |||
Commodity units hedged, mass | T | 0 | 0 | 7,080 |
Not Designated as Hedging Instrument | Aluminum | |||
Derivative [Line Items] | |||
Commodity units hedged, mass | 35 | 524 | 0 |
Not Designated as Hedging Instrument | Copper | |||
Derivative [Line Items] | |||
Commodity units hedged, mass | 18 | 269 | 0 |
Not Designated as Hedging Instrument | Steel | |||
Derivative [Line Items] | |||
Commodity units hedged, mass | T | 0 | 1,778 | 0 |
Derivative Financial Instrume_5
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 | Dec. 31, 2020CAD ($) | Dec. 31, 2020EUR (€) | Dec. 31, 2020GBP (£) | Dec. 31, 2020MXN ($) | Dec. 31, 2020SGD ($) | Dec. 31, 2020CHF (SFr) | Dec. 31, 2019CAD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2019GBP (£) | Dec. 31, 2019MXN ($) | Dec. 31, 2019SGD ($) | Dec. 31, 2019CHF (SFr) | Dec. 31, 2018CAD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2018GBP (£) | Dec. 31, 2018MXN ($) | Dec. 31, 2018SGD ($) | Dec. 31, 2018CHF (SFr) |
Designated as Hedging Instrument | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Derivative notional amount | $ 6.4 | € 3.3 | £ 6.1 | $ 92.8 | $ 2.3 | $ 8 | € 7.6 | £ 8 | $ 111.3 | $ 2 | $ 11 | € 9.9 | £ 12 | $ 176 | $ 1.5 | |||
Other Operating Income (Expense) | Not Designated as Hedging Instrument | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Derivative notional amount | $ 1.1 | € 84.2 | £ 1 | $ 13.8 | $ 0.3 | SFr 7 | $ 1.3 | € 75.6 | £ 20.3 | $ 11.8 | $ 28.4 | SFr 7 | $ 0 | € 69.7 | £ 23.7 | $ 0 | $ 28.4 | SFr 5.3 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Schedule of the Effect of Derivative Instruments on the Consolidated Statement of Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | |||
Pretax gain/(loss) recognized in AOCI | $ 0.5 | $ (2.5) | $ 0.2 |
Pretax gain/(loss) reclassified from AOCI into income | (1.4) | 0.4 | 3.5 |
Foreign currency exchange contracts | |||
Derivative [Line Items] | |||
Pretax gain/(loss) recognized in AOCI | 0.5 | 0.4 | (2.2) |
Commodity contracts | |||
Derivative [Line Items] | |||
Pretax gain/(loss) recognized in AOCI | 0 | (1.2) | (1) |
Interest rate swap contracts | |||
Derivative [Line Items] | |||
Pretax gain/(loss) recognized in AOCI | 0 | (1.7) | 3.4 |
Cost of sales | Foreign currency exchange contracts | |||
Derivative [Line Items] | |||
Pretax gain/(loss) reclassified from AOCI into income | (0.4) | (0.9) | (0.7) |
Cost of sales | Commodity contracts | |||
Derivative [Line Items] | |||
Pretax gain/(loss) reclassified from AOCI into income | (1) | (1.3) | 2.3 |
Cost of sales | Interest rate swap contracts | |||
Derivative [Line Items] | |||
Pretax gain/(loss) reclassified from AOCI into income | 0 | 0 | 0 |
Interest expense | Foreign currency exchange contracts | |||
Derivative [Line Items] | |||
Pretax gain/(loss) reclassified from AOCI into income | 0 | 0 | 0 |
Interest expense | Commodity contracts | |||
Derivative [Line Items] | |||
Pretax gain/(loss) reclassified from AOCI into income | 0 | 0 | 0 |
Interest expense | Interest rate swap contracts | |||
Derivative [Line Items] | |||
Pretax gain/(loss) reclassified from AOCI into income | 0 | 2.6 | 1.9 |
Designated as Hedging Instrument | Interest rate swap contracts | |||
Derivative [Line Items] | |||
Pretax gain/(loss) recognized in AOCI | (0.8) | 2.8 | 3.9 |
Gain/(loss) reclassified from AOCI into income | 0 | 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 | 1.6 | 0 |
Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Amount of gain/(loss) | (2.8) | 6.7 | (9.7) |
Not Designated as Hedging Instrument | Commodity contracts — short-term | |||
Derivative [Line Items] | |||
Amount of gain/(loss) | (0.2) | 0.1 | |
Not Designated as Hedging Instrument | Other (income) expense — net | Foreign currency exchange contracts | |||
Derivative [Line Items] | |||
Amount of gain/(loss) | $ (2.6) | $ 6.6 | |
Not Designated as Hedging Instrument | Other expense — net | Foreign currency exchange contracts | |||
Derivative [Line Items] | |||
Amount of gain/(loss) | (9.7) | ||
Not Designated as Hedging Instrument | Other expense — net | Commodity contracts — short-term | |||
Derivative [Line Items] | |||
Amount of gain/(loss) | $ 0 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Effects of Derivative Financial Instruments on Statements of Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Cost of sales | $ 743.4 | $ 1,027 | $ 1,020.9 |
Interest expense | 81.4 | 97.3 | 94.5 |
Pretax gain/(loss) reclassified from AOCI into income | (1.4) | 0.4 | 3.5 |
Interest rate swap contracts | Cost of sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Hedged item | 0 | 0 | 0 |
Derivative designated as hedging instrument | 0 | 0 | 0 |
Pretax gain/(loss) reclassified from AOCI into income | 0 | 0 | 0 |
Interest rate swap contracts | Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Hedged item | 0.1 | (14.2) | 5.3 |
Derivative designated as hedging instrument | 0 | 13.3 | (4) |
Pretax gain/(loss) reclassified from AOCI into income | 0 | 2.6 | 1.9 |
Foreign currency exchange contracts | Cost of sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pretax gain/(loss) reclassified from AOCI into income | (0.4) | (0.9) | (0.7) |
Foreign currency exchange contracts | Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pretax gain/(loss) reclassified from AOCI into income | 0 | 0 | 0 |
Commodity contracts | Cost of sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pretax gain/(loss) reclassified from AOCI into income | (1) | (1.3) | 2.3 |
Commodity contracts | Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pretax gain/(loss) reclassified from AOCI into income | $ 0 | $ 0 | $ 0 |
Derivative Financial Instrume_8
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 | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Asset derivatives at fair value | $ 2 | $ 1.2 |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Asset derivatives at fair value | 1.1 | 0.8 |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Asset derivatives at fair value | 0.9 | 0.4 |
Prepaids and other current assets | Designated as Hedging Instrument | Foreign currency exchange contracts | ||
Derivative [Line Items] | ||
Asset derivatives at fair value | 1.1 | 0.8 |
Prepaids and other current assets | Not Designated as Hedging Instrument | Foreign currency exchange contracts | ||
Derivative [Line Items] | ||
Asset derivatives at fair value | $ 0.9 | $ 0.4 |
Derivative Financial Instrume_9
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 | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Liability derivatives at fair value | $ 0.6 | $ 5 |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Liability derivatives at fair value | 0.2 | 3.8 |
Designated as Hedging Instrument | Accrued expenses and other liabilities | Foreign currency exchange contracts | ||
Derivative [Line Items] | ||
Liability derivatives at fair value | 0.2 | 0.6 |
Designated as Hedging Instrument | Accrued expenses and other liabilities | Interest rate swap contracts | ||
Derivative [Line Items] | ||
Liability derivatives at fair value | 0 | 3.2 |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Liability derivatives at fair value | 0.4 | 1.2 |
Not Designated as Hedging Instrument | Accrued expenses and other liabilities | Foreign currency exchange contracts | ||
Derivative [Line Items] | ||
Liability derivatives at fair value | 0.4 | 0.6 |
Not Designated as Hedging Instrument | Accrued expenses and other liabilities | Commodity contracts | ||
Derivative [Line Items] | ||
Liability derivatives at fair value | $ 0 | $ 0.6 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Secured Debt | Term Loan B Facility | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Debt instrument at fair value | $ 814.9 | $ 860.9 |
Senior Notes | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Debt instrument at fair value | $ 439.9 | $ 450.9 |
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 | Dec. 31, 2020 | Dec. 31, 2019 |
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Total current assets at fair value | $ 2 | $ 1.2 |
Total assets at fair value | 2 | 1.2 |
Total current liabilities at fair value | 0.6 | 5 |
Total liabilities at fair value | 0.6 | 5 |
Foreign currency exchange contracts | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Derivative assets, current | 2 | 1.2 |
Total current liabilities at fair value | 0.6 | 1.2 |
Commodity contracts | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Total current liabilities at fair value | 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 | |
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 | 2 | 1.2 |
Total assets at fair value | 2 | 1.2 |
Total current liabilities at fair value | 0.6 | 5 |
Total liabilities at fair value | 0.6 | 5 |
Level 2 | Foreign currency exchange contracts | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Derivative assets, current | 2 | 1.2 |
Total current liabilities at fair value | 0.6 | 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 | 0.6 | |
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 | |
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) - Level 3 - Fair Value, Nonrecurring | 12 Months Ended |
Dec. 31, 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% |
Discount Rate | |
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 - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Commitments and Contingencies Disclosure [Abstract] | ||||
Reserve for warranty claims | $ 39.9 | $ 43.9 | $ 39.7 | |
Product liability reserves | 1.7 | 1.3 | ||
Product liability reserves for actual cases | 0.9 | 0.7 | ||
Product liability reserves for claims incurred but not reported | 0.8 | 0.6 | ||
Accruals for environmental matters | 0.8 | $ 0.7 | ||
Estimated loss from diversion of funds | $ 3.1 | $ 3.1 |
Product Warranties - Liability
Product Warranties - Liability Activity (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Warranty activity | ||
Balance at beginning of period | $ 43.9 | $ 39.7 |
Additions for issuance of warranties | 27.7 | 42.4 |
Settlements (in cash or in kind) | (32.2) | (38.5) |
Currency translation impact | 0.5 | 0.3 |
Balance at end of period | 39.9 | 43.9 |
Other long-term liabilities | ||
Warranty activity | ||
Product warranty liabilities | $ 10 | $ 10.6 |
Product Warranties - Narrative
Product Warranties - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Product Warranty Liability [Line Items] | ||
Standard product warranty, low end of range | 12 months | |
Standard product warranty, high end of range | 60 months | |
Deferred revenues | $ 2.9 | $ 3.1 |
Accrued expenses and other liabilities | ||
Product Warranty Liability [Line Items] | ||
Deferred revenues | 1.9 | 1.8 |
Other long-term liabilities | ||
Product Warranty Liability [Line Items] | ||
Deferred revenues, noncurrent | $ 3.5 | $ 3.8 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020USD ($)plan | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2013USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Withdrawal obligation | $ 8.6 | $ 9.9 | $ 17.5 | |
Multiemployer plan, withdrawal obligation quarterly installment payment amount | $ 0.5 | |||
Number of defined contribution retirement plans for the employees | plan | 3 | |||
Defined contribution plan costs | $ 1.6 | 4.4 | $ 4 | |
Welbilt Deferred Compensation Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Deferred compensation plan assets, fair value | 3.6 | 3.8 | ||
Company stock held in trust | 0.4 | 0.4 | ||
Deferred compensation liability | 4 | 4.2 | ||
Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Reduction of accrued pension obligations | 5.5 | 7.9 | ||
Pension settlement loss | 0 | 1.2 | 2.4 | |
Minimum contribution next twelve months | 9 | |||
Expected company paid claims | 11.1 | |||
Postretirement Health and Other Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension settlement loss | $ 0 | $ 0 | $ 0 | |
Annual rate of increase in health care benefits percent | 5.50% | |||
Ultimate health care cost trend rate percent | 4.50% | |||
Minimum contribution next twelve months | $ 0.1 | |||
Expected company paid claims | $ 1.2 |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Components of Period Benefit Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost - benefits earned during the year | $ 0.1 | $ 0.1 | $ 0.1 |
Interest cost of projected benefit obligation | 3.8 | 5.2 | 5.2 |
Expected return on assets | (4.1) | (4.7) | (5.8) |
Amortization of prior service cost | 0 | 0 | 0 |
Amortization of actuarial net loss | 2.4 | 2.5 | 2.2 |
Settlement loss recognized | 0 | 1.2 | 2.4 |
Net periodic benefit cost | $ 2.2 | $ 4.3 | $ 4.1 |
Weighted average assumptions: | |||
Discount rate | 2.40% | 3.30% | 2.80% |
Expected return on plan assets | 2.50% | 3.10% | 3.20% |
Rate of compensation increase | 1.80% | 2.00% | 2.00% |
Postretirement Health and Other Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost - benefits earned during the year | $ 0 | $ 0 | $ 0 |
Interest cost of projected benefit obligation | 0.2 | 0.2 | 0.3 |
Expected return on assets | 0 | 0 | 0 |
Amortization of prior service cost | (0.2) | (0.2) | 0 |
Amortization of actuarial net loss | 0.7 | 0.3 | 0.2 |
Settlement loss recognized | 0 | 0 | 0 |
Net periodic benefit cost | $ 0.7 | $ 0.3 | $ 0.5 |
Weighted average assumptions: | |||
Discount rate | 2.60% | 3.80% | 3.20% |
Rate of compensation increase | 3.00% | 3.00% | 1.50% |
Employee Benefit Plans - Reconc
Employee Benefit Plans - Reconciliation of the Changes in Benefit Obligation, the Changes in Plan Assets, and the Funded Status (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Change in Plan Assets | |||
Fair value of plan assets, beginning of year | $ 166.3 | ||
Fair value of plan assets, end of year | 184.8 | $ 166.3 | |
Weighted-Average Assumptions | |||
Short term portion of pension obligation | 0.9 | 0.9 | |
Pension and postretirement health liabilities | 2.1 | 2.1 | |
Pension Plans | |||
Change in Benefit Obligations: | |||
Benefit obligation, beginning of year | 193.4 | 186.5 | |
Service cost | 0.1 | 0.1 | $ 0.1 |
Interest cost | 3.8 | 5.2 | 5.2 |
Participant contributions | 0 | 0 | |
Plan curtailments | (0.2) | 0 | |
Plan settlements | (0.4) | (5.5) | |
Plan amendments | 0 | 0 | |
Actuarial loss | 18.7 | 12.7 | |
Currency translation adjustment | 4.7 | 5 | |
Benefits paid | (12.9) | (10.6) | |
Benefit obligation, end of year | 207.2 | 193.4 | 186.5 |
Change in Plan Assets | |||
Fair value of plan assets, beginning of year | 166.3 | 152.6 | |
Actual return on plan assets | 18 | 16.5 | |
Employer contributions | 9.3 | 8.3 | |
Participant contributions | 0 | 0 | |
Plan settlements | (0.4) | (5.5) | |
Currency translation adjustment | 4.5 | 5 | |
Benefits paid | (12.9) | (10.6) | |
Fair value of plan assets, end of year | 184.8 | 166.3 | 152.6 |
Funded status | $ (22.4) | $ (27.1) | |
Weighted-Average Assumptions | |||
Discount rate | 1.60% | 2.40% | |
Rate of compensation increase | 1.80% | ||
Postretirement Health and Other Plans | |||
Change in Benefit Obligations: | |||
Benefit obligation, beginning of year | $ 7.6 | $ 7.3 | |
Service cost | 0 | 0 | 0 |
Interest cost | 0.2 | 0.2 | 0.3 |
Participant contributions | 0.3 | 0.3 | |
Plan curtailments | 0 | 0 | |
Plan settlements | 0 | 0 | |
Plan amendments | 0 | (0.1) | |
Actuarial loss | 0.5 | 2 | |
Currency translation adjustment | 0 | 0 | |
Benefits paid | (1) | (2.1) | |
Benefit obligation, end of year | 7.6 | 7.6 | 7.3 |
Change in Plan Assets | |||
Fair value of plan assets, beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 0.7 | 1.8 | |
Participant contributions | 0.3 | 0.3 | |
Plan settlements | 0 | 0 | |
Currency translation adjustment | 0 | 0 | |
Benefits paid | (1) | (2.1) | |
Fair value of plan assets, end of year | 0 | 0 | $ 0 |
Funded status | $ (7.6) | $ (7.6) | |
Weighted-Average Assumptions | |||
Discount rate | 2.00% | 2.60% | |
Rate of compensation increase | 3.00% | 3.00% | |
Pension and postretirement health liabilities | $ 1.2 | $ 1.2 |
Employee Benefit Plans - Amount
Employee Benefit Plans - Amounts Recognized in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss | $ (43) | $ (40) |
Prior service credit | 0.6 | 0.6 |
Total amount recognized | 42.4 | 39.4 |
Postretirement Health and Other Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss | (4) | (4.2) |
Prior service credit | 1.2 | 1.5 |
Total amount recognized | $ 2.8 | $ 2.7 |
Employee Benefit Plans - Summar
Employee Benefit Plans - Summary of the Sensitivity of Retirement Obligations and Retirement Benefit Costs of Plans to Changes in the Key Assumptions (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Pension Plans | |
Estimated increase (decrease) in pension cost for the year ended December 31, 2021 | |
0.5% increase in discount rate | $ (0.5) |
0.5% decrease in discount rate | 0.4 |
0.5% increase in long-term return on assets | (0.9) |
0.5% decrease in long-term return on assets | 0.9 |
Estimated increase (decrease) in projected benefit obligation for the year ended December 31, 2020 | |
0.5% increase in discount rate | (12.3) |
0.5% decrease in discount rate | 14 |
Postretirement Health and Other Plans | |
Estimated increase (decrease) in pension cost for the year ended December 31, 2021 | |
0.5% increase in discount rate | 0 |
0.5% decrease in discount rate | 0 |
Estimated increase (decrease) in projected benefit obligation for the year ended December 31, 2020 | |
0.5% increase in discount rate | (0.2) |
0.5% decrease in discount rate | $ 0.2 |
Employee Benefit Plans - Sche_2
Employee Benefit Plans - Schedule of the Weighted-Average Asset Allocations of the Pension Plans (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted Average Asset Allocations | 11.10% | 17.80% |
Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted Average Asset Allocations | 46.40% | 33.40% |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted Average Asset Allocations | 42.50% | 48.80% |
Employee Benefit Plans - Sche_3
Employee Benefit Plans - Schedule of the Actual Allocations for the Pension Assets and Target Allocations by Asset Class (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocations | 12.30% | |
Weighted Average Asset Allocations | 11.10% | 17.80% |
Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocations | 48.00% | |
Weighted Average Asset Allocations | 46.40% | 33.40% |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocations | 39.70% | |
Weighted Average Asset Allocations | 42.50% | 48.80% |
Employee Benefit Plans - Sche_4
Employee Benefit Plans - Schedule of Plan Assets Using the Fair Value Hierarchy (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Plan assets using fair value hierarchy | |||
Fair value of plan assets | $ 184.8 | $ 166.3 | |
Cash and cash equivalents | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 0.7 | 1 | |
Insurance group annuity contracts | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 73.8 | 69 | |
Common/collective trust funds — Government, corporate and other non-government debt | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 85.9 | 55.5 | |
Common/collective trust funds — Corporate equity | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 20.4 | 29.5 | |
Common/collective trust funds — Customized strategy | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 4 | 11.3 | |
Level 1 | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 0.7 | 1 | |
Level 1 | Cash and cash equivalents | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 0.7 | 1 | |
Level 1 | Insurance group annuity contracts | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 0 | 0 | |
Level 1 | Common/collective trust funds — Government, corporate and other non-government debt | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 0 | 0 | |
Level 1 | Common/collective trust funds — Corporate equity | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 0 | 0 | |
Level 1 | Common/collective trust funds — Customized strategy | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 0 | 0 | |
Level 2 | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 110.3 | 96.3 | |
Level 2 | Cash and cash equivalents | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 0 | 0 | |
Level 2 | Insurance group annuity contracts | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 0 | 0 | |
Level 2 | Common/collective trust funds — Government, corporate and other non-government debt | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 85.9 | 55.5 | |
Level 2 | Common/collective trust funds — Corporate equity | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 20.4 | 29.5 | |
Level 2 | Common/collective trust funds — Customized strategy | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 4 | 11.3 | |
Level 3 | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 73.8 | 69 | |
Level 3 | Cash and cash equivalents | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | Insurance group annuity contracts | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 73.8 | 69 | $ 65.6 |
Level 3 | Common/collective trust funds — Government, corporate and other non-government debt | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | Common/collective trust funds — Corporate equity | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | Common/collective trust funds — Customized strategy | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | $ 0 | $ 0 |
Employee Benefit Plans - Reco_2
Employee Benefit Plans - Reconciliation of the Fair Values Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) from the Beginning of the Year to the End of the Year (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of fair value measurements of plan assets using significant observable inputs | ||
Fair value of plan assets, beginning of year | $ 166.3 | |
Fair value of plan assets, end of year | 184.8 | $ 166.3 |
Level 3 | ||
Reconciliation of fair value measurements of plan assets using significant observable inputs | ||
Fair value of plan assets, beginning of year | 69 | |
Fair value of plan assets, end of year | 73.8 | 69 |
Insurance group annuity contracts | ||
Reconciliation of fair value measurements of plan assets using significant observable inputs | ||
Fair value of plan assets, beginning of year | 69 | |
Fair value of plan assets, end of year | 73.8 | 69 |
Insurance group annuity contracts | Level 3 | ||
Reconciliation of fair value measurements of plan assets using significant observable inputs | ||
Fair value of plan assets, beginning of year | 69 | 65.6 |
Contributions | 0.1 | 0.1 |
Plan settlements | (0.4) | 0 |
Actual return on assets | 7.3 | 5.1 |
Benefit payments | (4.5) | (4.4) |
Foreign currency impact | 2.3 | 2.6 |
Fair value of plan assets, end of year | $ 73.8 | $ 69 |
Employee Benefit Plans - Sche_5
Employee Benefit Plans - Schedule of Projected Benefit Payments from the Plans (Details) $ in Millions | Dec. 31, 2020USD ($) |
Pension Plans | |
Projected benefit payments from the plans | |
2021 | $ 11.1 |
2022 | 11.1 |
2023 | 11.1 |
2024 | 11 |
2025 | 10.9 |
2026-2030 | 50.6 |
Total | 105.8 |
Postretirement Health and Other Plans | |
Projected benefit payments from the plans | |
2021 | 1.2 |
2022 | 1.2 |
2023 | 1 |
2024 | 0.9 |
2025 | 0.6 |
2026-2030 | 1.7 |
Total | $ 6.6 |
Employee Benefit Plans - Fair V
Employee Benefit Plans - Fair Value of Plan Assets for Which the Accumulated Benefit Obligation is in Excess of the Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 207.2 | $ 193.4 |
Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | 207.2 | 193.4 |
Fair value of plan assets | $ 184.8 | $ 166.3 |
Business Transformation Progr_3
Business Transformation Program and Restructuring - Transformation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
Transformation Program expense: | $ 23.3 | $ 35.3 | $ 0 |
Cost of sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Transformation Program expense: | 2 | 2 | |
Selling, general and administrative expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Transformation Program expense: | $ 21.3 | $ 33.3 |
Business Transformation Progr_4
Business Transformation Program and Restructuring - Rollforward of all Restructuring Activities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Rollforward of all restructuring activities | |||
Beginning balance | $ 14.9 | $ 13.1 | |
Restructuring expense | 8.2 | 9.8 | $ 6 |
Payments for Restructuring | (10.4) | (6.6) | |
Non-cash adjustments | (1.5) | (1.4) | |
Ending balance | 11.2 | 14.9 | 13.1 |
Workforce reductions | 2020 Plans | |||
Rollforward of all restructuring activities | |||
Beginning balance | 0 | 0 | |
Restructuring expense | 5.6 | 0 | |
Payments for Restructuring | (3.1) | 0 | |
Non-cash adjustments | (0.1) | 0 | |
Ending balance | 2.4 | 0 | 0 |
Workforce reductions | 2019 Plans | |||
Rollforward of all restructuring activities | |||
Beginning balance | 4.8 | 0 | |
Restructuring expense | 1.2 | 9.6 | |
Payments for Restructuring | (5.8) | (3.8) | |
Non-cash adjustments | 0 | (1) | |
Ending balance | 0.2 | 4.8 | 0 |
Workforce reductions | 2018 and Previous Plans | |||
Rollforward of all restructuring activities | |||
Beginning balance | 0.2 | 2 | |
Restructuring expense | 0 | (0.2) | |
Payments for Restructuring | (0.2) | (1.6) | |
Non-cash adjustments | 0 | 0 | |
Ending balance | 0 | 0.2 | 2 |
Other | 2019 Plans | |||
Rollforward of all restructuring activities | |||
Beginning balance | 0 | 0 | |
Restructuring expense | 1.4 | 0.4 | |
Payments for Restructuring | 0 | 0 | |
Non-cash adjustments | (1.4) | (0.4) | |
Ending balance | 0 | 0 | 0 |
Pension withdrawal obligation | 2018 and Previous Plans | |||
Rollforward of all restructuring activities | |||
Beginning balance | 9.9 | 11.1 | |
Restructuring expense | 0 | 0 | |
Payments for Restructuring | (1.3) | (1.2) | |
Non-cash adjustments | 0 | 0 | |
Ending balance | $ 8.6 | $ 9.9 | $ 11.1 |
Business Transformation Progr_5
Business Transformation Program and Restructuring - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||||
Short term portion of liability | $ 4 | $ 6.3 | |||
Long term portion of liability | 7.2 | 8.6 | |||
Restructuring expense | 8.2 | 9.8 | $ 6 | ||
2018 CEO Separation | Chief Executive Officer | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Severance costs | 0.8 | ||||
Reversal of expense from forfeiture of unvested stock awards and accrued incentive compensation | (3.7) | ||||
Manufacturing Facility in Baltimore, Maryland | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expense | $ 0.6 | ||||
Workforce reductions | 2018 Americas RIF and Corporate Management Restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expense | 3 | ||||
Share-based compensation accelerated vesting | 0.3 | ||||
Workforce reductions | 2019 Global RIF and Limited Executive Management Restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expense | 1.2 | $ 4.2 | 5.4 | ||
Workforce reductions | Manufacturing Facility in Baltimore, Maryland | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expense | 0.2 | 4.1 | |||
Workforce reductions | 2020 Operating Expense Reduction and Improved Efficiencies | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expense | 3.6 | ||||
Inventory Write-Down | Manufacturing Facility in Baltimore, Maryland | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expense | 0.2 | ||||
Accelerated Depreciation | Manufacturing Facility in Baltimore, Maryland | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expense | $ 0.2 | ||||
EMEA | Operating Segments | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expense | 2.4 | 2.6 | 1.7 | ||
EMEA | Workforce reductions | 2018 Limited Management RIF | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expense | 0.6 | ||||
EMEA | Workforce reductions | Manufacturing Facility in Baltimore, Maryland | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expense | 2.5 | ||||
EMEA | Workforce reductions | 2019 Americas, EMEA, and APAC RIF | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expense | 0.4 | ||||
EMEA | Workforce reductions | 2020 Operating Expense Reduction and Improved Efficiencies | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expense | 2 | ||||
APAC | Operating Segments | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expense | 2.2 | 0.6 | 0.5 | ||
APAC | Workforce reductions | 2018 EMEA and APAC RIF | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expense | 1.4 | ||||
APAC | Workforce reductions | Manufacturing Facility in Baltimore, Maryland | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expense | 0.5 | ||||
APAC | Workforce reductions | 2019 Americas, EMEA, and APAC RIF | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expense | 0.8 | ||||
APAC | Inventory Write-Down | 2019 Americas, EMEA, and APAC RIF | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expense | 0.4 | ||||
APAC | Accelerated Depreciation | 2019 Americas, EMEA, and APAC RIF | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expense | 1 | ||||
Americas | Operating Segments | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expense | 2.3 | 3.4 | $ 2.3 | ||
Americas | Workforce reductions | Manufacturing Facility in Baltimore, Maryland | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expense | $ 1.1 | ||||
Americas | Workforce reductions | 2020 Operating Expense Reduction and Improved Efficiencies | Operating Segments | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expense | 2.3 | ||||
Corporate Segment | Workforce reductions | 2020 Operating Expense Reduction and Improved Efficiencies | Operating Segments | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expense | $ 1.3 |
Business Transformation Progr_6
Business Transformation Program and Restructuring - Restructuring Expense by Component (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | $ 8.2 | $ 9.8 | $ 6 |
Cost of sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | 0.4 | 0.4 | 0 |
Restructuring and other expense | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | 7.8 | 9.4 | 6 |
Operating Segments | Americas | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | 2.3 | 3.4 | 2.3 |
Operating Segments | EMEA | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | 2.4 | 2.6 | 1.7 |
Operating Segments | APAC | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | 2.2 | 0.6 | 0.5 |
Corporate and unallocated expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | $ 1.3 | $ 3.2 | $ 1.5 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Components (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total accumulated other comprehensive loss | $ 273 | $ 253.4 | $ 186.4 | $ 103.6 |
Foreign currency translation | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total accumulated other comprehensive loss | 19.1 | (4.3) | (6.5) | 4.4 |
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 | (1.6) | ||
Tax expense, (benefit) | (1.1) | (0.8) | ||
Pension & Postretirement | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total accumulated other comprehensive loss | (38.6) | (35.6) | (35.9) | (40) |
Tax expense, (benefit) | (6.6) | (6.5) | ||
Accumulated Other Comprehensive (Loss) Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total accumulated other comprehensive loss | $ (19.5) | $ (41.5) | $ (41.6) | $ (32) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Schedule of Changes in AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 253.4 | $ 186.4 | $ 103.6 |
Other comprehensive income (loss) before reclassifications | 18.1 | (3.5) | (10.5) |
Reclassifications | 4.3 | 3.4 | 1.3 |
Tax effect of reclassifications | (0.4) | 0.2 | (0.4) |
Total other comprehensive income (loss), net of tax | 22 | 0.1 | (9.6) |
Ending balance | 273 | 253.4 | 186.4 |
Foreign currency translation | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (4.3) | (6.5) | 4.4 |
Other comprehensive income (loss) before reclassifications | 23.6 | 2.7 | (10.2) |
Reclassifications | 0 | 0 | 0 |
Tax effect of reclassifications | (0.2) | (0.5) | (0.7) |
Total other comprehensive income (loss), net of tax | 23.4 | 2.2 | (10.9) |
Ending balance | 19.1 | (4.3) | (6.5) |
Gains and Losses on Cash Flow Hedges | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (1.6) | 0.8 | 3.6 |
Other comprehensive income (loss) before reclassifications | 0.5 | (2.5) | 0.2 |
Reclassifications | 1.4 | (0.4) | (3.5) |
Tax effect of reclassifications | (0.3) | 0.5 | 0.5 |
Total other comprehensive income (loss), net of tax | 1.6 | (2.4) | (2.8) |
Ending balance | 0 | (1.6) | 0.8 |
Pension & Postretirement | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (35.6) | (35.9) | (40) |
Other comprehensive income (loss) before reclassifications | (6) | (3.7) | (0.5) |
Reclassifications | 2.9 | 3.8 | 4.8 |
Tax effect of reclassifications | 0.1 | 0.2 | (0.2) |
Total other comprehensive income (loss), net of tax | (3) | 0.3 | 4.1 |
Ending balance | (38.6) | (35.6) | (35.9) |
Accumulated Other Comprehensive (Loss) Income | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (41.5) | (41.6) | (32) |
Total other comprehensive income (loss), net of tax | 22 | 0.1 | (9.6) |
Ending balance | $ (19.5) | $ (41.5) | $ (41.6) |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Loss - Reclassifications (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Cost of sales | $ (743.4) | $ (1,027) | $ (1,020.9) | ||||||||
Interest expense | (81.4) | (97.3) | (94.5) | ||||||||
Other income (expense) — net | 4.6 | (0.9) | (24.3) | ||||||||
(Losses) gains on cash flow hedges, before tax | (13.7) | 75.7 | 89 | ||||||||
Tax effect | 6.3 | (19.8) | (10.8) | ||||||||
Net (loss) earnings | $ 20.2 | $ 4.9 | $ (17.4) | $ (15.1) | $ 18.4 | $ 20.1 | $ 20 | $ (2.6) | (7.4) | 55.9 | 78.2 |
Total reclassifications, net of tax | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Net (loss) earnings | (3.3) | (2.9) | (1.3) | ||||||||
Total reclassifications, net of tax | Gains and Losses on Cash Flow Hedges | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
(Losses) gains on cash flow hedges, before tax | (1.4) | 0.4 | 3.5 | ||||||||
Tax effect | 0.3 | 0.1 | (0.8) | ||||||||
Net (loss) earnings | (1.1) | 0.5 | 2.7 | ||||||||
Total reclassifications, net of tax | Amortization of prior service cost | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Other income (expense) — net | 0.2 | 0.2 | 0 | ||||||||
Total reclassifications, net of tax | Actuarial losses | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Other income (expense) — net | (3.1) | (2.8) | (2.4) | ||||||||
Total reclassifications, net of tax | Pension settlement | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Other income (expense) — net | 0 | (1.2) | (2.4) | ||||||||
Total reclassifications, net of tax | Pension and postretirement | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
(Losses) gains on cash flow hedges, before tax | (2.9) | (3.8) | (4.8) | ||||||||
Tax effect | 0.7 | 0.4 | 0.8 | ||||||||
Net (loss) earnings | (2.2) | (3.4) | (4) | ||||||||
Total reclassifications, net of tax | Foreign currency exchange contracts | Gains and Losses on Cash Flow Hedges | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Cost of sales | (0.4) | (0.9) | (0.7) | ||||||||
Total reclassifications, net of tax | Commodity contracts | Gains and Losses on Cash Flow Hedges | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Cost of sales | (1) | (1.3) | 2.3 | ||||||||
Total reclassifications, net of tax | Interest Rate Swap | Gains and Losses on Cash Flow Hedges | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Interest expense | $ 0 | $ 2.6 | $ 1.9 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesAndOtherLiabilities | us-gaap:AccruedLiabilitiesAndOtherLiabilities |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtAndCapitalLeaseObligations | us-gaap:LongTermDebtAndCapitalLeaseObligations |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentNet | us-gaap:PropertyPlantAndEquipmentNet |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 12 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating lease expense | $ 14.9 | $ 15.9 |
Depreciation of assets | 1.2 | 1.2 |
Interest on lease liabilities | 0.1 | 0.1 |
Short-term lease expense | 2.4 | 2.8 |
Variable lease expense | 0.5 | 1 |
Total lease expense | $ 19.1 | $ 21 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Operating leases: | ||
Operating lease right-of-use assets | $ 47.5 | $ 39.9 |
Current operating lease liabilities | 9.7 | 10 |
Non-current operating lease liabilities | 37.7 | 29.1 |
Total operating lease liabilities | 47.4 | 39.1 |
Finance leases: | ||
Property, plant and equipment, at cost | 5.4 | 6.2 |
Accumulated depreciation | 2.8 | 3.5 |
Total finance leases - property and equipment — net | 2.6 | 2.7 |
Current obligations of finance leases | 1 | 1.2 |
Non-current finance lease liabilities | 1.2 | 1.3 |
Total finance lease liabilities | $ 2.2 | $ 2.5 |
Weighted average remaining lease term (in years): | ||
Operating leases | 6 years 9 months 18 days | 7 years 1 month 6 days |
Finance leases | 2 years 9 months 18 days | 2 years 3 months 18 days |
Weighted average discount rate: | ||
Operating leases | 7.10% | 7.60% |
Finance leases | 4.80% | 4.83% |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesAndOtherLiabilities | us-gaap:AccruedLiabilitiesAndOtherLiabilities |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentNet | us-gaap:PropertyPlantAndEquipmentNet |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtAndCapitalLeaseObligations | us-gaap:LongTermDebtAndCapitalLeaseObligations |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows used in operating leases | $ 14.2 | $ 14.6 |
Operating cash flows used in financing leases | 0.1 | 0.1 |
Financing cash flows used in financing leases | 1.3 | 1.2 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating Leases | 19.8 | 14.1 |
Finance Leases | $ 0.9 | $ 0.8 |
Leases - Future Minimum Rental
Leases - Future Minimum Rental Obligations Under Lease Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Operating | ||
2021 | $ 12.4 | |
2022 | 10 | |
2023 | 8.3 | |
2024 | 6.9 | |
2025 | 5.2 | |
Thereafter | 18.7 | |
Total lease payments | 61.5 | |
Less: imputed interest | (14.1) | |
Total lease obligations | 47.4 | $ 39.1 |
Financing | ||
2021 | 1 | |
2022 | 0.8 | |
2023 | 0.3 | |
2024 | 0.1 | |
2025 | 0.1 | |
Thereafter | 0 | |
Total lease payments | 2.3 | |
Less: imputed interest | (0.1) | |
Total lease obligations | $ 2.2 | $ 2.5 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) shares in Millions, $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares authorized under share based compensation plans (in shares) | shares | 7.8 |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense | $ 2.8 |
Recognition period for unrecognized compensation expense | 2 years 6 months |
Restricted stock awards and units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
Unrecognized compensation expense | $ 5.1 |
Recognition period for unrecognized compensation expense | 2 years |
Performance share units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
Unrecognized compensation expense | $ 3.2 |
Recognition period for unrecognized compensation expense | 2 years |
Directors | Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting percentage | 25.00% |
Vesting period | 4 years |
Expiration period | 10 years |
Minimum | Performance share units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting percentage | 0.00% |
Maximum | Performance share units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting percentage | 200.00% |
Grants in 2018 | Directors | Restricted stock awards and units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 1 year |
Grants in 2017 | Directors | Restricted stock awards and units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 2 years |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | $ 4.7 | $ 7.3 | $ 7 |
Expected achievement percentage | 0.00% | 100.00% | |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | $ 1.8 | $ 1.5 | 1.5 |
Restricted stock awards and units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 4 | 3.8 | 3 |
Performance share units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | (1.1) | 2 | 2.5 |
Selling, general and administrative expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 5.1 | 6.4 | 6.7 |
Selling, general and administrative expenses | Performance share units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Adjustment to share-based compensation expense | 1.2 | ||
Restructuring and other expense | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | (0.4) | $ 0.9 | $ 0.3 |
Restructuring and other expense | Performance share units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Adjustment to share-based compensation expense | $ 0.3 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of the Company's Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Options | ||
Options outstanding at the beginning of the period (in shares) | 2 | |
Granted (in shares) | 0.6 | |
Exercised (in shares) | (0.2) | |
Forfeited (in shares) | (0.1) | |
Canceled (in shares) | (0.2) | |
Options outstanding at the end of the period (in shares) | 2.1 | 2 |
Options vested and expected to vest (in shares) | 2.1 | |
Options exercisable (in shares) | 1.2 | |
Weighted Average Exercise Price | ||
Options outstanding at the beginning of the period (in dollars per share) | $ 15.82 | |
Granted (in dollars per share) | 13.99 | |
Exercised (in dollars per share) | 9.20 | |
Forfeited (in dollars per share) | 14.64 | |
Canceled (in dollars per share) | 14.35 | |
Options outstanding at the end of the period (in dollars per share) | 15.85 | $ 15.82 |
Options vested and expected to vest (in dollars per share) | 15.88 | |
Options exercisable (in dollars per share) | $ 16.66 | |
Weighted Average Remaining Contractual Life (Years) | ||
Options outstanding | 6 years 2 months 12 days | 5 years 4 months 24 days |
Options vested and expected to vest | 6 years 1 month 6 days | |
Options exercisable | 4 years 2 months 12 days | |
Aggregate Intrinsic Value | ||
Options outstanding | $ 0 | $ 2.1 |
Options vested and expected to vest | 0 | |
Options exercisable | $ 0 | |
Exercise Price, low end of range (in dollars per share) | $ 6.91 | |
Exercise Price, high end of range (in dollars per share) | $ 23.14 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of the Assumptions Used to Estimate the Fair Value of Options Granted (Details) - Stock options | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life | 6 years | 6 years | 6 years |
Risk-free Interest rate | 1.30% | 2.50% | 2.70% |
Expected volatility | 31.90% | 31.00% | 29.00% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Stock-Based Compensation - Sc_3
Stock-Based Compensation - Schedule of Option Compensation Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement [Abstract] | |||
Weighted average grant date fair value (in dollars per share) | $ 4.66 | $ 5.27 | $ 6.84 |
Fair value of options vested | $ 1.6 | $ 1.5 | $ 1.7 |
Intrinsic value of options exercised | 0.7 | 2.8 | 3.3 |
Excess tax benefit for tax deductions related to the exercise of stock options | 0.1 | 0.9 | 0.8 |
Cash received from option exercises, net of tax withholding | 0.9 | 2.5 | 5.1 |
Tax benefits for stock-option compensation expense | $ 0.4 | $ 0.3 | $ 0.4 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Activity for Restricted Stock Units and Performance Shares (Details) - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restricted stock awards and units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Unvested beginning of period (in shares) | 0.4 | ||
Granted (in shares) | 0.6 | ||
Vested (in shares) | (0.1) | ||
Forfeited (in shares) | (0.1) | ||
Unvested end of period (in shares) | 0.8 | 0.4 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Unvested beginning of period (in dollars per share) | $ 15.88 | ||
Granted (in dollars per share) | 10.36 | $ 15.29 | $ 18.15 |
Vested (in dollars per share) | 15.16 | ||
Forfeited (in dollars per share) | 15.16 | ||
Unvested end of period (in dollars per share) | $ 11.41 | $ 15.88 | |
Performance share units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Unvested beginning of period (in shares) | 0.4 | ||
Granted (in shares) | 0.3 | ||
Vested (in shares) | (0.1) | ||
Forfeited (in shares) | (0.1) | ||
Unvested end of period (in shares) | 0.5 | 0.4 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Unvested beginning of period (in dollars per share) | $ 17.45 | ||
Granted (in dollars per share) | 13.94 | $ 15.11 | $ 20.25 |
Vested (in dollars per share) | 20.25 | ||
Forfeited (in dollars per share) | 14.90 | ||
Unvested end of period (in dollars per share) | $ 14.53 | $ 17.45 | |
Shares vested in period, performance period | 3 years | ||
Shares vested in period, percentage earned and distributed | 7.50% |
Stock-Based Compensation - Sc_4
Stock-Based Compensation - Schedule of Restricted Stock Units and Restricted Stock Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Tax benefits for restricted stock compensation expense | $ 0.4 | $ 0.3 | $ 0.4 |
Restricted stock awards and units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value (in dollars per share) | $ 10.36 | $ 15.29 | $ 18.15 |
Fair value of awards vested | $ 1.3 | $ 5.4 | $ 8.1 |
Tax benefits for restricted stock compensation expense | $ 0.7 | $ 0.7 | $ 0.7 |
Stock-Based Compensation - Sc_5
Stock-Based Compensation - Schedule of Performance Based Unit Programs (Details) - Performance share units shares in Millions | 12 Months Ended |
Dec. 31, 2020shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
PSU's outstanding (in shares) | 0.4 |
2019 Program | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
PSU's outstanding (in shares) | 0.2 |
Expected Vesting Threshold | 0.00% |
2020 Program | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
PSU's outstanding (in shares) | 0.2 |
Expected Vesting Threshold | 162.00% |
Stock-Based Compensation - Sc_6
Stock-Based Compensation - Schedule of Performance Share Unit Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Tax benefits for stock-option compensation expense | $ 0.4 | $ 0.3 | $ 0.4 |
Performance share units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value (in dollars per share) | $ 13.94 | $ 15.11 | $ 20.25 |
Fair value of awards vested | $ 0.2 | $ 2 | $ 2.6 |
Tax benefits for stock-option compensation expense | $ (0.3) | $ 0.5 | $ 0.6 |
Other (Income) Expense _ Net (D
Other (Income) Expense — Net (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other Income (Expense) [Line Items] | ||||
Amortization of debt issuance costs | $ 5.2 | $ 4.7 | $ 5.5 | |
Other (income) expense — net | (4.6) | 0.9 | 24.3 | |
Other Income (Expense) | ||||
Other Income (Expense) [Line Items] | ||||
Net periodic benefit cost | 2.8 | 4.6 | 4.6 | |
Foreign currency transaction losses | (5.7) | 0.7 | 20.1 | |
Amortization of debt issuance costs | 0 | 0 | 0 | |
Other | (1.7) | (4.4) | (0.4) | |
Interest expense | ||||
Other Income (Expense) [Line Items] | ||||
Amortization of debt issuance costs | $ 5.2 | |||
Adjustment | Other Income (Expense) | ||||
Other Income (Expense) [Line Items] | ||||
Amortization of debt issuance costs | (4.7) | (5.5) | ||
Adjustment | Interest expense | ||||
Other Income (Expense) [Line Items] | ||||
Amortization of debt issuance costs | $ 4.7 | 5.5 | ||
Foreign currency exchange contracts | Not Designated as Hedging Instrument | Crem | ||||
Other Income (Expense) [Line Items] | ||||
Loss on derivative instrument | $ 10 | $ 10 |
(Loss) Earnings Per Share - Pot
(Loss) Earnings Per Share - Potentially Issuable Shares (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Number of anti-dilutive shares excluded from the calculation of diluted earnings per share (in shares) | 3,593,780 | 1,200,000 | 600,000 |
Performance target achievement (in percent) | 100.00% | ||
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Number of anti-dilutive shares excluded from the calculation of diluted earnings per share (in shares) | 2,136,827 | ||
Restricted stock awards and units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Number of anti-dilutive shares excluded from the calculation of diluted earnings per share (in shares) | 808,363 | ||
Performance share units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Number of anti-dilutive shares excluded from the calculation of diluted earnings per share (in shares) | 648,590 | ||
Performance share units | Minimum | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Vesting percentage | 0.00% | ||
Performance share units | Maximum | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Vesting percentage | 200.00% |
(Loss) Earnings Per Share - Com
(Loss) Earnings Per Share - Components of Basic and Diluted Shares (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Net (loss) earnings | $ 20.2 | $ 4.9 | $ (17.4) | $ (15.1) | $ 18.4 | $ 20.1 | $ 20 | $ (2.6) | $ (7.4) | $ 55.9 | $ 78.2 |
Basic weighted average common shares outstanding (in shares) | 141,491,326 | 140,953,496 | 140,023,635 | ||||||||
Effect of dilutive securities: | |||||||||||
Effect of dilutive securities (in shares) | 0 | 614,289 | 1,365,150 | ||||||||
Diluted weighted average common shares outstanding (in shares) | 141,491,326 | 141,567,785 | 141,388,785 | ||||||||
(Loss) earnings per share — Basic (in dollars per share) | $ 0.14 | $ 0.03 | $ (0.12) | $ (0.11) | $ 0.13 | $ 0.14 | $ 0.14 | $ (0.02) | $ (0.05) | $ 0.40 | $ 0.56 |
(Loss) earnings per share — Diluted (in dollars per share) | $ 0.14 | $ 0.03 | $ (0.12) | $ (0.11) | $ 0.13 | $ 0.14 | $ 0.14 | $ (0.02) | $ (0.05) | $ 0.39 | $ 0.55 |
Stock options | |||||||||||
Effect of dilutive securities: | |||||||||||
Effect of dilutive securities, share-based compensation (in shares) | 0 | 224,860 | 585,270 | ||||||||
Unvested restricted stock units | |||||||||||
Effect of dilutive securities: | |||||||||||
Effect of dilutive securities, share-based compensation (in shares) | 0 | 245,416 | 437,720 | ||||||||
Unvested performance share units | |||||||||||
Effect of dilutive securities: | |||||||||||
Effect of dilutive securities, share-based compensation (in shares) | 0 | 144,013 | 342,160 |
(Loss) Earnings Per Share - Nar
(Loss) Earnings Per Share - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||
Number of anti-dilutive shares excluded from the calculation of diluted earnings per share (in shares) | 3,593,780 | 1,200,000 | 600,000 |
Dividends paid to stockholders | $ 0 | $ 0 | $ 0 |
Business Segments - Financial I
Business Segments - Financial Information Relating to Reportable Segments (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Total net sales | $ 320 | $ 298.5 | $ 206 | $ 328.9 | $ 381.8 | $ 410.5 | $ 426.3 | $ 375.3 | $ 1,153.4 | $ 1,593.9 | $ 1,590.1 |
Amortization expense | (40.6) | (39.8) | (37) | ||||||||
Depreciation expense | (20.7) | (21.1) | (18) | ||||||||
Transaction costs | (0.2) | (1.1) | (7.1) | ||||||||
Other items | (3.2) | (4.5) | (5.6) | ||||||||
Business transformation costs | (23.3) | (35.3) | 0 | ||||||||
Separation expense | 0 | 0 | (0.1) | ||||||||
Restructuring activities | (8.2) | (9.8) | (6) | ||||||||
(Loss) gain from impairment and disposal of assets — net | (11.6) | (0.7) | 0.4 | ||||||||
Earnings from operations | 40.6 | $ 21.2 | $ 0.7 | $ 0.6 | 37.4 | $ 54.8 | $ 57.2 | $ 24.5 | 63.1 | 173.9 | 216.8 |
Interest expense | (81.4) | (97.3) | (94.5) | ||||||||
Loss on modification or extinguishment of debt | 0 | 0 | (9) | ||||||||
Other income (expense) — net | 4.6 | (0.9) | (24.3) | ||||||||
(Loss) earnings before income taxes | (13.7) | 75.7 | 89 | ||||||||
Custom duties, fees, and interest on previously imported products | 3.1 | ||||||||||
Loss on misappropriation of funds | 3.7 | ||||||||||
Costs associated with restatement of financial statements | 1.3 | ||||||||||
Other professional fees | 0.1 | 0.6 | |||||||||
Total assets | 2,141.6 | 2,165.3 | $ 2,141.6 | 2,165.3 | |||||||
Number of segments | segment | 3 | ||||||||||
Americas | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net sales | $ 774.6 | 1,075.3 | 1,090.9 | ||||||||
EMEA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net sales | 223.5 | 313.2 | 307.4 | ||||||||
APAC | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net sales | 155.3 | 205.4 | 191.8 | ||||||||
Cost of sales | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Transaction costs | (0.1) | (1.9) | |||||||||
Business transformation costs | (2) | (2) | |||||||||
Selling, general and administrative expenses | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Transaction costs | (0.2) | (1) | (5.2) | ||||||||
Business transformation costs | (21.3) | (33.3) | |||||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Segment Adjusted Operating EBITDA | 232.9 | 348.9 | 355.3 | ||||||||
Operating Segments | Americas | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net sales | 867 | 1,208.4 | 1,228.4 | ||||||||
Total Segment Adjusted Operating EBITDA | 155.5 | 237.6 | 246.4 | ||||||||
Total assets | 1,488 | 1,533.9 | 1,488 | 1,533.9 | |||||||
Operating Segments | EMEA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net sales | 292.6 | 392.7 | 385.1 | ||||||||
Total Segment Adjusted Operating EBITDA | 46.2 | 70.6 | 78 | ||||||||
Total assets | 347.6 | 349.8 | 347.6 | 349.8 | |||||||
Operating Segments | APAC | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net sales | 202.1 | 252.3 | 229.1 | ||||||||
Total Segment Adjusted Operating EBITDA | 31.2 | 40.7 | $ 30.9 | ||||||||
Total assets | 209 | 211.8 | $ 209 | $ 211.8 | |||||||
Operating Segments | Geographic Concentration Risk | Earnings Before Interest, Taxes, Deprecation and Amortization | Americas | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Adjusted Operating EBITDA % by segment | 17.90% | 19.70% | 20.10% | ||||||||
Operating Segments | Geographic Concentration Risk | Earnings Before Interest, Taxes, Deprecation and Amortization | EMEA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Adjusted Operating EBITDA % by segment | 15.80% | 18.00% | 20.30% | ||||||||
Operating Segments | Geographic Concentration Risk | Earnings Before Interest, Taxes, Deprecation and Amortization | APAC | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Adjusted Operating EBITDA % by segment | 15.40% | 16.10% | 13.50% | ||||||||
Elimination of intersegment sales | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net sales | $ (208.3) | $ (259.5) | $ (252.5) | ||||||||
Corporate and unallocated expenses | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Segment Adjusted Operating EBITDA | (62) | (62.7) | $ (65.1) | ||||||||
Total assets | $ 97 | $ 69.8 | $ 97 | $ 69.8 |
Business Segments - Capital Exp
Business Segments - Capital Expenditures, Depreciation and Third party net sales by geographic area (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 320 | $ 298.5 | $ 206 | $ 328.9 | $ 381.8 | $ 410.5 | $ 426.3 | $ 375.3 | $ 1,153.4 | $ 1,593.9 | $ 1,590.1 |
Capital expenditures | 20.1 | 33.9 | 21.4 | ||||||||
Depreciation expense | 21.6 | 21.3 | 18 | ||||||||
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 725 | 991.8 | 995 | ||||||||
Other Americas | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 60.4 | 97.8 | 112 | ||||||||
EMEA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 217.5 | 308.9 | 300.7 | ||||||||
APAC | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 150.5 | 195.4 | 182.4 | ||||||||
Americas | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 774.6 | 1,075.3 | 1,090.9 | ||||||||
EMEA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 223.5 | 313.2 | 307.4 | ||||||||
APAC | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 155.3 | 205.4 | 191.8 | ||||||||
Operating Segments | Americas | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 867 | 1,208.4 | 1,228.4 | ||||||||
Capital expenditures | 14.5 | 24.3 | 13.7 | ||||||||
Depreciation expense | 11.5 | 14.1 | 12.1 | ||||||||
Operating Segments | EMEA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 292.6 | 392.7 | 385.1 | ||||||||
Capital expenditures | 1.5 | 2.9 | 1.8 | ||||||||
Depreciation expense | 3.1 | 3.2 | 3 | ||||||||
Operating Segments | APAC | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 202.1 | 252.3 | 229.1 | ||||||||
Capital expenditures | 1.6 | 2.6 | 3 | ||||||||
Depreciation expense | 3.4 | 2.7 | 2.4 | ||||||||
Corporate and unallocated expenses | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Capital expenditures | 2.5 | 4.1 | 2.9 | ||||||||
Depreciation expense | $ 3.6 | $ 1.3 | $ 0.5 |
Business Segments - Property, P
Business Segments - Property, Plant, and Equipment and Assets by Geographic Area (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Property, plant and equipment — net | $ 129.1 | $ 127.5 |
Assets | 2,141.6 | 2,165.3 |
Operating Segments | Americas | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,488 | 1,533.9 |
Operating Segments | EMEA | ||
Segment Reporting Information [Line Items] | ||
Assets | 347.6 | 349.8 |
Operating Segments | APAC | ||
Segment Reporting Information [Line Items] | ||
Assets | 209 | 211.8 |
Corporate and unallocated expenses | ||
Segment Reporting Information [Line Items] | ||
Assets | 97 | 69.8 |
United States | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment — net | 79 | 78.8 |
Other Americas | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment — net | 24.9 | 21.6 |
EMEA | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment — net | 11.3 | 12.1 |
Asia Pacific | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment — net | $ 13.9 | $ 15 |
Business Segments - Net Sales b
Business Segments - Net Sales by Product Class and geographic segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue from External Customer [Line Items] | |||||||||||
Net sales | $ 320 | $ 298.5 | $ 206 | $ 328.9 | $ 381.8 | $ 410.5 | $ 426.3 | $ 375.3 | $ 1,153.4 | $ 1,593.9 | $ 1,590.1 |
Americas | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 774.6 | 1,075.3 | 1,090.9 | ||||||||
EMEA | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 223.5 | 313.2 | 307.4 | ||||||||
APAC | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 155.3 | 205.4 | 191.8 | ||||||||
Commercial Foodservice Equipment | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 966.3 | 1,335.8 | 1,329 | ||||||||
Commercial Foodservice Equipment | Americas | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 656.1 | 896.3 | 907 | ||||||||
Commercial Foodservice Equipment | EMEA | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 180 | 265.2 | 258.8 | ||||||||
Commercial Foodservice Equipment | APAC | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 130.2 | 174.3 | 163.2 | ||||||||
Aftermarket parts and support | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 187.1 | 258.1 | 261.1 | ||||||||
Aftermarket parts and support | Americas | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 118.5 | 179 | 183.9 | ||||||||
Aftermarket parts and support | EMEA | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 43.5 | 48 | 48.6 | ||||||||
Aftermarket parts and support | APAC | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | $ 25.1 | $ 31.1 | $ 28.6 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 320 | $ 298.5 | $ 206 | $ 328.9 | $ 381.8 | $ 410.5 | $ 426.3 | $ 375.3 | $ 1,153.4 | $ 1,593.9 | $ 1,590.1 |
Gross profit | 121.5 | 105.3 | 68.4 | 114.8 | 133.2 | 150.9 | 156.3 | 126.5 | 410 | 566.9 | 569.2 |
Earnings from operations | 40.6 | 21.2 | 0.7 | 0.6 | 37.4 | 54.8 | 57.2 | 24.5 | 63.1 | 173.9 | 216.8 |
Net (loss) earnings | $ 20.2 | $ 4.9 | $ (17.4) | $ (15.1) | $ 18.4 | $ 20.1 | $ 20 | $ (2.6) | $ (7.4) | $ 55.9 | $ 78.2 |
Per share data: | |||||||||||
(Loss) earnings per share — Basic (in dollars per share) | $ 0.14 | $ 0.03 | $ (0.12) | $ (0.11) | $ 0.13 | $ 0.14 | $ 0.14 | $ (0.02) | $ (0.05) | $ 0.40 | $ 0.56 |
(Loss) earnings per share — Diluted (in dollars per share) | $ 0.14 | $ 0.03 | $ (0.12) | $ (0.11) | $ 0.13 | $ 0.14 | $ 0.14 | $ (0.02) | $ (0.05) | $ 0.39 | $ 0.55 |
Subsidiary Guarantors of Seni_3
Subsidiary Guarantors of Senior Notes - Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net sales | $ 320 | $ 298.5 | $ 206 | $ 328.9 | $ 381.8 | $ 410.5 | $ 426.3 | $ 375.3 | $ 1,153.4 | $ 1,593.9 | $ 1,590.1 |
Cost of sales | 743.4 | 1,027 | 1,020.9 | ||||||||
Gross profit | 121.5 | 105.3 | 68.4 | 114.8 | 133.2 | 150.9 | 156.3 | 126.5 | 410 | 566.9 | 569.2 |
Selling, general and administrative expenses | 285.3 | 344.2 | 309.8 | ||||||||
Amortization expense | 39.1 | 38.7 | 37 | ||||||||
Restructuring and other expense | 10.9 | 9.4 | 6 | ||||||||
Loss from impairment and loss (gain) on disposal of assets — net | 11.6 | 0.7 | (0.4) | ||||||||
Earnings from operations | 40.6 | 21.2 | 0.7 | 0.6 | 37.4 | 54.8 | 57.2 | 24.5 | 63.1 | 173.9 | 216.8 |
Interest expense | 81.4 | 97.3 | 94.5 | ||||||||
Loss on modification or extinguishment of debt | 0 | 0 | 9 | ||||||||
Other (income) expense — net | (4.6) | 0.9 | 24.3 | ||||||||
Equity in earnings (loss) of subsidiaries | 0 | 0 | 0 | ||||||||
(Loss) earnings before income taxes | (13.7) | 75.7 | 89 | ||||||||
Income tax (benefit) expense | (6.3) | 19.8 | 10.8 | ||||||||
Net (loss) earnings | $ 20.2 | $ 4.9 | $ (17.4) | $ (15.1) | $ 18.4 | $ 20.1 | $ 20 | $ (2.6) | (7.4) | 55.9 | 78.2 |
Total other comprehensive income (loss), net of tax | 22 | 0.1 | (9.6) | ||||||||
Comprehensive income | 14.6 | 56 | 68.6 | ||||||||
Consolidating Adjustments | |||||||||||
Net sales | (345.9) | (462.1) | (458.5) | ||||||||
Cost of sales | (345.9) | (462.1) | (458.5) | ||||||||
Gross profit | 0 | 0 | 0 | ||||||||
Selling, general and administrative expenses | 0 | 0 | 0 | ||||||||
Amortization expense | 0 | 0 | 0 | ||||||||
Restructuring and other expense | 0 | 0 | 0 | ||||||||
Loss from impairment and loss (gain) on disposal of assets — net | 0 | 0 | 0 | ||||||||
Earnings from operations | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Loss on modification or extinguishment of debt | 0 | ||||||||||
Other (income) expense — net | 0 | 0 | 0 | ||||||||
Equity in earnings (loss) of subsidiaries | (131.8) | (277.4) | (274.9) | ||||||||
(Loss) earnings before income taxes | (131.8) | (277.4) | (274.9) | ||||||||
Income tax (benefit) expense | 0 | 0 | 0 | ||||||||
Net (loss) earnings | (131.8) | (277.4) | (274.9) | ||||||||
Total other comprehensive income (loss), net of tax | (1,042.9) | 49.9 | 42.8 | ||||||||
Comprehensive income | (1,174.7) | (227.5) | (232.1) | ||||||||
Parent | Reportable Legal Entities | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Cost of sales | 0 | 3.6 | 21.2 | ||||||||
Gross profit | 0 | (3.6) | (21.2) | ||||||||
Selling, general and administrative expenses | 63.2 | 85 | 49.9 | ||||||||
Amortization expense | 0 | 0 | 0 | ||||||||
Restructuring and other expense | 1.3 | 2.6 | 1.6 | ||||||||
Loss from impairment and loss (gain) on disposal of assets — net | 0 | 0.1 | 0 | ||||||||
Earnings from operations | (64.5) | (91.3) | (72.7) | ||||||||
Interest expense | 79.9 | 92.8 | 86.1 | ||||||||
Loss on modification or extinguishment of debt | 9 | ||||||||||
Other (income) expense — net | (18.7) | (18.9) | (12.3) | ||||||||
Equity in earnings (loss) of subsidiaries | 84.9 | 189.3 | 203.7 | ||||||||
(Loss) earnings before income taxes | (40.8) | 24.1 | 48.2 | ||||||||
Income tax (benefit) expense | (33.4) | (31.8) | (30) | ||||||||
Net (loss) earnings | (7.4) | 55.9 | 78.2 | ||||||||
Total other comprehensive income (loss), net of tax | 21.9 | 0.1 | (9.6) | ||||||||
Comprehensive income | 14.5 | 56 | 68.6 | ||||||||
Guarantor Subsidiaries | Reportable Legal Entities | |||||||||||
Net sales | 796.5 | 1,104.8 | 1,110.8 | ||||||||
Cost of sales | 618 | 838.8 | 836.8 | ||||||||
Gross profit | 178.5 | 266 | 274 | ||||||||
Selling, general and administrative expenses | 109.7 | 137.6 | 129.1 | ||||||||
Amortization expense | 28.3 | 28.5 | 28.5 | ||||||||
Restructuring and other expense | 4.8 | 2.7 | 1.2 | ||||||||
Loss from impairment and loss (gain) on disposal of assets — net | 0.4 | 0.3 | (0.5) | ||||||||
Earnings from operations | 35.3 | 96.9 | 115.7 | ||||||||
Interest expense | 0.7 | 0.9 | 1 | ||||||||
Loss on modification or extinguishment of debt | 0 | ||||||||||
Other (income) expense — net | (17.4) | (26.7) | (29.6) | ||||||||
Equity in earnings (loss) of subsidiaries | 46.9 | 88.1 | 71.2 | ||||||||
(Loss) earnings before income taxes | 98.9 | 210.8 | 215.5 | ||||||||
Income tax (benefit) expense | 14 | 21.5 | 11.8 | ||||||||
Net (loss) earnings | 84.9 | 189.3 | 203.7 | ||||||||
Total other comprehensive income (loss), net of tax | 522 | (26.4) | (19.5) | ||||||||
Comprehensive income | 606.9 | 162.9 | 184.2 | ||||||||
Non- Guarantor Subsidiaries | Reportable Legal Entities | |||||||||||
Net sales | 702.8 | 951.2 | 937.8 | ||||||||
Cost of sales | 471.3 | 646.7 | 621.4 | ||||||||
Gross profit | 231.5 | 304.5 | 316.4 | ||||||||
Selling, general and administrative expenses | 112.4 | 121.6 | 130.8 | ||||||||
Amortization expense | 10.8 | 10.2 | 8.5 | ||||||||
Restructuring and other expense | 4.8 | 4.1 | 3.2 | ||||||||
Loss from impairment and loss (gain) on disposal of assets — net | 11.2 | 0.3 | 0.1 | ||||||||
Earnings from operations | 92.3 | 168.3 | 173.8 | ||||||||
Interest expense | 0.8 | 3.6 | 7.4 | ||||||||
Loss on modification or extinguishment of debt | 0 | ||||||||||
Other (income) expense — net | 31.5 | 46.5 | 66.2 | ||||||||
Equity in earnings (loss) of subsidiaries | 0 | 0 | 0 | ||||||||
(Loss) earnings before income taxes | 60 | 118.2 | 100.2 | ||||||||
Income tax (benefit) expense | 13.1 | 30.1 | 29 | ||||||||
Net (loss) earnings | 46.9 | 88.1 | 71.2 | ||||||||
Total other comprehensive income (loss), net of tax | 521 | (23.5) | (23.3) | ||||||||
Comprehensive income | $ 567.9 | $ 64.6 | $ 47.9 |
Subsidiary Guarantors of Seni_4
Subsidiary Guarantors of Senior Notes - Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||||
Cash and cash equivalents | $ 125,000 | $ 130,700 | ||
Restricted cash | 400 | 0 | ||
Accounts receivable — net | 165,900 | 183,600 | ||
Intercompany trade receivable | 0 | |||
Inventories — net | 180,600 | 186,400 | ||
Prepaids and other current assets | 50,100 | 28,200 | ||
Total current assets | 522,000 | 528,900 | ||
Property, plant and equipment — net | 129,100 | 127,500 | ||
Operating lease right-of-use assets | 47,500 | 39,900 | ||
Goodwill | 942,900 | 933,100 | $ 935,600 | |
Other intangible assets — net | 469,600 | 507,700 | ||
Intercompany long-term notes receivable | 0 | 0 | ||
Due from affiliates | 0 | 0 | ||
Investment in subsidiaries | 0 | 0 | ||
Other non-current assets | 30,500 | 28,200 | ||
Total assets | 2,141,600 | 2,165,300 | ||
Current liabilities: | ||||
Trade accounts payable | 86,400 | 104,400 | ||
Accrued expenses and other liabilities | 164,200 | 192,400 | ||
Current portion of long-term debt and finance leases | 1,000 | 1,200 | ||
Intercompany trade payable | 0 | |||
Product warranties | 29,900 | 33,300 | ||
Total current liabilities | 281,500 | 331,300 | ||
Long-term debt and finance leases | 1,407,800 | 1,403,100 | ||
Deferred income taxes | 76,500 | 81,900 | ||
Pension and postretirement health liabilities | 27,800 | 32,800 | ||
Intercompany long-term notes payable | 0 | 0 | ||
Due to affiliates | 0 | 0 | ||
Investment in subsidiaries | 0 | 0 | ||
Operating lease liabilities | 37,700 | 29,100 | ||
Other long-term liabilities | 37,300 | 33,700 | ||
Total non-current liabilities | 1,587,100 | 1,580,600 | ||
Total equity (deficit): | ||||
Total equity (deficit) | 273,000 | 253,400 | $ 186,400 | $ 103,600 |
Total liabilities and equity | 2,141,600 | 2,165,300 | ||
Consolidating Adjustments | ||||
Current assets: | ||||
Cash and cash equivalents | (200) | 0 | ||
Restricted cash | 0 | |||
Accounts receivable — net | 0 | 0 | ||
Intercompany trade receivable | (5,900) | |||
Inventories — net | 0 | 0 | ||
Prepaids and other current assets | 0 | 0 | ||
Total current assets | (200) | (5,900) | ||
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 | (15,700) | (20,000) | ||
Due from affiliates | (3,509,900) | (3,437,200) | ||
Investment in subsidiaries | (4,485,800) | (4,400,900) | ||
Other non-current assets | 0 | 0 | ||
Total assets | (8,011,600) | (7,864,000) | ||
Current liabilities: | ||||
Trade accounts payable | (100) | 0 | ||
Accrued expenses and other liabilities | 0 | 0 | ||
Current portion of long-term debt and finance leases | 0 | 0 | ||
Intercompany trade payable | (5,900) | |||
Product warranties | 0 | 0 | ||
Total current liabilities | (100) | (5,900) | ||
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 | (15,700) | (20,000) | ||
Due to affiliates | (3,509,900) | (3,437,200) | ||
Investment in subsidiaries | (254,200) | (300,900) | ||
Operating lease liabilities | 0 | 0 | ||
Other long-term liabilities | 0 | (100) | ||
Total non-current liabilities | (3,779,800) | (3,758,200) | ||
Total equity (deficit): | ||||
Total equity (deficit) | (4,231,700) | (4,099,900) | ||
Total liabilities and equity | (8,011,600) | (7,864,000) | ||
Parent | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 8,600 | 10,700 | ||
Restricted cash | 0 | |||
Accounts receivable — net | 400 | 100 | ||
Intercompany trade receivable | 0 | |||
Inventories — net | 0 | 0 | ||
Prepaids and other current assets | 24,200 | 6,700 | ||
Total current assets | 33,200 | 17,500 | ||
Property, plant and equipment — net | 14,200 | 17,000 | ||
Operating lease right-of-use assets | 2,200 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets — net | 200 | 0 | ||
Intercompany long-term notes receivable | 0 | 0 | ||
Due from affiliates | 0 | 0 | ||
Investment in subsidiaries | 4,485,800 | 4,400,900 | ||
Other non-current assets | 8,300 | 7,600 | ||
Total assets | 4,543,900 | 4,443,000 | ||
Current liabilities: | ||||
Trade accounts payable | 0 | 200 | ||
Accrued expenses and other liabilities | 33,600 | 35,300 | ||
Current portion of long-term debt and finance leases | 0 | 0 | ||
Intercompany trade payable | 5,900 | |||
Product warranties | 0 | 0 | ||
Total current liabilities | 33,600 | 41,400 | ||
Long-term debt and finance leases | 1,406,700 | 1,370,000 | ||
Deferred income taxes | 43,400 | 45,000 | ||
Pension and postretirement health liabilities | 12,900 | 15,500 | ||
Intercompany long-term notes payable | 15,700 | 15,700 | ||
Due to affiliates | 2,743,000 | 2,695,100 | ||
Investment in subsidiaries | 0 | 0 | ||
Operating lease liabilities | 2,100 | 0 | ||
Other long-term liabilities | 13,400 | 7,000 | ||
Total non-current liabilities | 4,237,200 | 4,148,300 | ||
Total equity (deficit): | ||||
Total equity (deficit) | 273,100 | 253,300 | ||
Total liabilities and equity | 4,543,900 | 4,443,000 | ||
Guarantor Subsidiaries | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 700 | ||
Restricted cash | 0 | |||
Accounts receivable — net | 72,000 | 82,500 | ||
Intercompany trade receivable | 5,900 | |||
Inventories — net | 83,400 | 100,200 | ||
Prepaids and other current assets | 2,500 | 6,800 | ||
Total current assets | 157,900 | 196,100 | ||
Property, plant and equipment — net | 70,600 | 66,400 | ||
Operating lease right-of-use assets | 3,900 | 3,600 | ||
Goodwill | 832,400 | 832,400 | ||
Other intangible assets — net | 315,600 | 344,200 | ||
Intercompany long-term notes receivable | 5,800 | 10,100 | ||
Due from affiliates | 3,509,900 | 3,437,200 | ||
Investment in subsidiaries | 0 | 0 | ||
Other non-current assets | 4,400 | 4,200 | ||
Total assets | 4,900,500 | 4,894,200 | ||
Current liabilities: | ||||
Trade accounts payable | 44,000 | 49,000 | ||
Accrued expenses and other liabilities | 66,100 | 87,700 | ||
Current portion of long-term debt and finance leases | 400 | 700 | ||
Intercompany trade payable | 0 | |||
Product warranties | 19,700 | 21,900 | ||
Total current liabilities | 130,200 | 159,300 | ||
Long-term debt and finance leases | 300 | 600 | ||
Deferred income taxes | 0 | 0 | ||
Pension and postretirement health liabilities | 10,200 | 10,200 | ||
Intercompany long-term notes payable | 0 | 0 | ||
Due to affiliates | 0 | 0 | ||
Investment in subsidiaries | 254,200 | 300,900 | ||
Operating lease liabilities | 2,300 | 1,800 | ||
Other long-term liabilities | 17,500 | 20,500 | ||
Total non-current liabilities | 284,500 | 334,000 | ||
Total equity (deficit): | ||||
Total equity (deficit) | 4,485,800 | 4,400,900 | ||
Total liabilities and equity | 4,900,500 | 4,894,200 | ||
Non- Guarantor Subsidiaries | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 116,600 | 119,300 | ||
Restricted cash | 400 | |||
Accounts receivable — net | 93,500 | 101,000 | ||
Intercompany trade receivable | 0 | |||
Inventories — net | 97,200 | 86,200 | ||
Prepaids and other current assets | 23,400 | 14,700 | ||
Total current assets | 331,100 | 321,200 | ||
Property, plant and equipment — net | 44,300 | 44,100 | ||
Operating lease right-of-use assets | 41,400 | 36,300 | ||
Goodwill | 110,500 | 100,700 | ||
Other intangible assets — net | 153,800 | 163,500 | ||
Intercompany long-term notes receivable | 9,900 | 9,900 | ||
Due from affiliates | 0 | 0 | ||
Investment in subsidiaries | 0 | 0 | ||
Other non-current assets | 17,800 | 16,400 | ||
Total assets | 708,800 | 692,100 | ||
Current liabilities: | ||||
Trade accounts payable | 42,500 | 55,200 | ||
Accrued expenses and other liabilities | 64,500 | 69,400 | ||
Current portion of long-term debt and finance leases | 600 | 500 | ||
Intercompany trade payable | 0 | |||
Product warranties | 10,200 | 11,400 | ||
Total current liabilities | 117,800 | 136,500 | ||
Long-term debt and finance leases | 800 | 32,500 | ||
Deferred income taxes | 33,100 | 36,900 | ||
Pension and postretirement health liabilities | 4,700 | 7,100 | ||
Intercompany long-term notes payable | 0 | 4,300 | ||
Due to affiliates | 766,900 | 742,100 | ||
Investment in subsidiaries | 0 | 0 | ||
Operating lease liabilities | 33,300 | 27,300 | ||
Other long-term liabilities | 6,400 | 6,300 | ||
Total non-current liabilities | 845,200 | 856,500 | ||
Total equity (deficit): | ||||
Total equity (deficit) | (254,200) | (300,900) | ||
Total liabilities and equity | $ 708,800 | $ 692,100 |
Subsidiary Guarantors of Seni_5
Subsidiary Guarantors of Senior Notes - Cash Flows (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed consolidating statement of cash flows | ||||
Net cash provided by (used in) operating activities | $ 15 | $ (269.7) | $ (448.5) | |
Cash flows from investing activities | ||||
Cash receipts on beneficial interest in sold receivables | 0 | 280.7 | 576.4 | |
Capital expenditures | (20.1) | (33.9) | (21.4) | |
Acquisition of intangible assets | (0.2) | 0 | (2.8) | |
Business acquisition, net of cash acquired | 0 | 0 | (215.6) | |
Purchase of short-term investment | 0 | 0 | (35) | |
Proceeds from maturity of short-term investment | 0 | 32 | 20.7 | |
Settlement of foreign exchange contract | 0 | 0 | (10) | |
Other | (3.9) | 1.1 | 1.2 | |
Intercompany investment | 0 | 0 | 0 | |
Net cash (used in) provided by investing activities | (24.2) | 279.9 | 313.5 | |
Cash flows from financing activities | ||||
Proceeds from long-term debt | 219.1 | 410 | 475.5 | |
Repayments on long-term debt and finance leases | (218.7) | (348.4) | (383.2) | |
Proceeds from short-term borrowings | 0 | 0 | 30 | |
Repayment of short-term borrowings | 0 | (15) | (15) | |
Debt issuance costs | (2.1) | 0 | (6.8) | |
Payment of contingent consideration | 0 | (0.8) | (1.4) | |
Exercises of stock options | 1.2 | 3.2 | 6.2 | |
Payments on tax withholdings for equity awards | (0.8) | (2.4) | (3) | |
Intercompany financing | 0 | 0 | 0 | |
Net cash (used in) provided by financing activities | (1.3) | 46.6 | 102.3 | |
Effect of exchange rate changes on cash | 5.2 | 0.7 | (2.9) | |
Net (decrease) increase in cash and cash equivalents and restricted cash | (5.3) | 57.5 | (35.6) | |
Balance at beginning of period | $ 130.7 | 130.7 | 73.2 | 108.8 |
Balance at end of period | 125.4 | 130.7 | 73.2 | |
Consolidating Adjustments | ||||
Condensed consolidating statement of cash flows | ||||
Net cash provided by (used in) operating activities | (0.2) | 0 | 0.8 | |
Cash flows from investing activities | ||||
Cash receipts on beneficial interest in sold receivables | 0 | 0 | ||
Capital expenditures | 0 | 0 | 0 | |
Acquisition of intangible assets | 0 | 0 | ||
Business acquisition, net of cash acquired | 0 | |||
Purchase of short-term investment | 0 | |||
Proceeds from maturity of short-term investment | 0 | 0 | ||
Settlement of foreign exchange contract | 0 | |||
Other | 0 | 0 | 0 | |
Intercompany investment | 47.8 | 65.6 | 140.7 | |
Net cash (used in) provided by investing activities | 47.8 | 65.6 | 140.7 | |
Cash flows from financing activities | ||||
Proceeds from long-term debt | 0 | 0 | 0 | |
Repayments on long-term debt and finance leases | 0 | 0 | 0 | |
Proceeds from short-term borrowings | 0 | |||
Repayment of short-term borrowings | 0 | 0 | ||
Debt issuance costs | 0 | 0 | ||
Payment of contingent consideration | 0 | 0 | ||
Exercises of stock options | 0 | 0 | 0 | |
Payments on tax withholdings for equity awards | 0 | 0 | 0 | |
Intercompany financing | (47.8) | (65.6) | (140.7) | |
Net cash (used in) provided by financing activities | (47.8) | (65.6) | (140.7) | |
Effect of exchange rate changes on cash | 0 | 0 | 0 | |
Net (decrease) increase in cash and cash equivalents and restricted cash | (0.2) | 0 | 0.8 | |
Balance at beginning of period | 0 | 0 | 0 | (0.8) |
Balance at end of period | (0.2) | 0 | 0 | |
Parent | Reportable Legal Entities | ||||
Condensed consolidating statement of cash flows | ||||
Net cash provided by (used in) operating activities | (74.6) | (158.3) | (163.5) | |
Cash flows from investing activities | ||||
Cash receipts on beneficial interest in sold receivables | 0 | 0 | ||
Capital expenditures | (2.6) | (4.2) | (2.9) | |
Acquisition of intangible assets | 0 | 0 | ||
Business acquisition, net of cash acquired | 0 | |||
Purchase of short-term investment | 0 | |||
Proceeds from maturity of short-term investment | 0 | 0 | ||
Settlement of foreign exchange contract | 0 | |||
Other | (3.9) | 1.1 | 1.2 | |
Intercompany investment | 0 | 0 | 0 | |
Net cash (used in) provided by investing activities | (6.5) | (3.1) | (1.7) | |
Cash flows from financing activities | ||||
Proceeds from long-term debt | 196.5 | 410 | 300.5 | |
Repayments on long-term debt and finance leases | (163.6) | (304.5) | (281) | |
Proceeds from short-term borrowings | 0 | |||
Repayment of short-term borrowings | 0 | 0 | ||
Debt issuance costs | (2.1) | (6.8) | ||
Payment of contingent consideration | 0 | 0 | ||
Exercises of stock options | 1.2 | 3.2 | 6.2 | |
Payments on tax withholdings for equity awards | (0.8) | (2.4) | (3) | |
Intercompany financing | 47.8 | 65.6 | 140.7 | |
Net cash (used in) provided by financing activities | 79 | 171.9 | 156.6 | |
Effect of exchange rate changes on cash | 0 | 0 | 0 | |
Net (decrease) increase in cash and cash equivalents and restricted cash | (2.1) | 10.5 | (8.6) | |
Balance at beginning of period | 10.7 | 10.7 | 0.2 | 8.8 |
Balance at end of period | 8.6 | 10.7 | 0.2 | |
Guarantor Subsidiaries | Reportable Legal Entities | ||||
Condensed consolidating statement of cash flows | ||||
Net cash provided by (used in) operating activities | 77.9 | (11.2) | 161.8 | |
Cash flows from investing activities | ||||
Cash receipts on beneficial interest in sold receivables | 75.8 | 0 | ||
Capital expenditures | (9.4) | (20.5) | (11.1) | |
Acquisition of intangible assets | (0.2) | (2.8) | ||
Business acquisition, net of cash acquired | 0 | |||
Purchase of short-term investment | 0 | |||
Proceeds from maturity of short-term investment | 0 | 0 | ||
Settlement of foreign exchange contract | 0 | |||
Other | 0 | 0 | 0 | |
Intercompany investment | (68.3) | (42.2) | (145.6) | |
Net cash (used in) provided by investing activities | (77.9) | 13.1 | (159.5) | |
Cash flows from financing activities | ||||
Proceeds from long-term debt | 0 | 0 | 0 | |
Repayments on long-term debt and finance leases | (0.7) | (0.9) | (0.4) | |
Proceeds from short-term borrowings | 0 | |||
Repayment of short-term borrowings | 0 | 0 | ||
Debt issuance costs | 0 | 0 | ||
Payment of contingent consideration | (0.8) | (1.4) | ||
Exercises of stock options | 0 | 0 | 0 | |
Payments on tax withholdings for equity awards | 0 | 0 | 0 | |
Intercompany financing | 0 | 0 | 0 | |
Net cash (used in) provided by financing activities | (0.7) | (1.7) | (1.8) | |
Effect of exchange rate changes on cash | 0 | 0 | 0 | |
Net (decrease) increase in cash and cash equivalents and restricted cash | (0.7) | 0.2 | 0.5 | |
Balance at beginning of period | 0.7 | 0.7 | 0.5 | 0 |
Balance at end of period | 0 | 0.7 | 0.5 | |
Non- Guarantor Subsidiaries | Reportable Legal Entities | ||||
Condensed consolidating statement of cash flows | ||||
Net cash provided by (used in) operating activities | 11.9 | (100.2) | (447.6) | |
Cash flows from investing activities | ||||
Cash receipts on beneficial interest in sold receivables | 204.9 | 576.4 | ||
Capital expenditures | (8.1) | (9.2) | (7.4) | |
Acquisition of intangible assets | 0 | 0 | ||
Business acquisition, net of cash acquired | (215.6) | |||
Purchase of short-term investment | (35) | |||
Proceeds from maturity of short-term investment | 32 | 20.7 | ||
Settlement of foreign exchange contract | (10) | |||
Other | 0 | 0 | 0 | |
Intercompany investment | 20.5 | (23.4) | 4.9 | |
Net cash (used in) provided by investing activities | 12.4 | 204.3 | 334 | |
Cash flows from financing activities | ||||
Proceeds from long-term debt | 22.6 | 0 | 175 | |
Repayments on long-term debt and finance leases | (54.4) | (43) | (101.8) | |
Proceeds from short-term borrowings | 30 | |||
Repayment of short-term borrowings | (15) | (15) | ||
Debt issuance costs | 0 | 0 | ||
Payment of contingent consideration | 0 | 0 | ||
Exercises of stock options | 0 | 0 | 0 | |
Payments on tax withholdings for equity awards | 0 | 0 | 0 | |
Intercompany financing | 0 | 0 | 0 | |
Net cash (used in) provided by financing activities | (31.8) | (58) | 88.2 | |
Effect of exchange rate changes on cash | 5.2 | 0.7 | (2.9) | |
Net (decrease) increase in cash and cash equivalents and restricted cash | (2.3) | 46.8 | (28.3) | |
Balance at beginning of period | $ 119.3 | 119.3 | 72.5 | 100.8 |
Balance at end of period | $ 117 | $ 119.3 | $ 72.5 |
Schedule II_ Valuation and Qu_2
Schedule II: Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for doubtful accounts | |||
Valuation and Qualifying Accounts | |||
Balance at beginning of period | $ 4 | $ 3.9 | $ 4 |
Charges to (recoveries from) costs and expenses | 0.9 | (0.1) | 0.6 |
Utilization of reserve | (0.3) | 0 | (0.6) |
Other | (0.2) | 0.2 | (0.1) |
Balance at end of period | 4.4 | 4 | 3.9 |
Deferred tax valuation allowance | |||
Valuation and Qualifying Accounts | |||
Balance at beginning of period | 28.3 | 40.7 | 41 |
Charges to (recoveries from) costs and expenses | (0.9) | (1.6) | (0.2) |
Utilization of reserve | 2.9 | (10.8) | 0 |
Other | 0.6 | 0 | (0.1) |
Balance at end of period | $ 30.9 | $ 28.3 | $ 40.7 |
Uncategorized Items - wbt-20201
Label | Element | Value | |
Accounting Standards Update [Extensible List] | us-gaap_AccountingStandardsUpdateExtensibleList | us-gaap:AccountingStandardsUpdate201602Member | [1] |
Accounting Standards Update [Extensible List] | us-gaap_AccountingStandardsUpdateExtensibleList | us-gaap:AccountingStandardsUpdate201409Member | [2] |
[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. | ||
[2] | Effective January 1, 2018, the Company adopted ASU 2014-09 "Revenue from Contracts with Customers (Topic 606)" with additional updates subsequently issued (collectively, "ASU 2014-09"). The cumulative effect of the changes made to the consolidated statement of equity as of January 1, 2018 for the adoption of ASU 2014-09 is related to the establishment of right to return assets in conjunction with its product return policy. |