Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2019shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | FMC CORPORATION |
Entity Central Index Key | 0000037785 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | Mar. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q1 |
Emerging Growth Company | false |
Small Business | false |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 131,657,750 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Loss) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Revenue | $ 1,192.1 | $ 1,107.9 |
Costs and Expenses | ||
Costs of sales and services | 647.4 | 605.4 |
Gross margin | 544.7 | 502.5 |
Selling, general and administrative expenses | 183.9 | 192.5 |
Research and development expenses | 71.2 | 64.9 |
Restructuring and other charges (income) | 7.8 | (79.9) |
Total costs and expenses | 910.3 | 782.9 |
Income from continuing operations before equity in (earnings) loss of affiliates, non-operating pension and postretirement charges (income), interest expense, net and income taxes | 281.8 | 325 |
Equity in (earnings) loss of affiliates | 0 | (0.1) |
Non-operating pension and postretirement charges (income) | 3.4 | 0.5 |
Interest expense, net | 34.5 | 33.9 |
Income (loss) from continuing operations before income taxes | 243.9 | 290.7 |
Provision (benefit) for income taxes | 36.3 | 60.5 |
Income (loss) from continuing operations | 207.6 | 230.2 |
Discontinued operations, net of income taxes | 9.6 | 39.4 |
Net income (loss) | 217.2 | 269.6 |
Less: Net income (loss) attributable to noncontrolling interests | 1.5 | 2.4 |
Net income (loss) attributable to FMC stockholders | 215.7 | 267.2 |
Amounts attributable to FMC stockholders: | ||
Continuing operations, net of income taxes | 206.1 | 227.8 |
Discontinued operations, net of income taxes | 9.6 | 39.4 |
Net income (loss) attributable to FMC stockholders | $ 215.7 | $ 267.2 |
Basic earnings (loss) per common share attributable to FMC stockholders: | ||
Continuing operations (in USD per share) | $ 1.56 | $ 1.69 |
Discontinued operations (in USD per share) | 0.07 | 0.29 |
Net income (loss) attributable to FMC stockholders (in USD per share) | 1.63 | 1.98 |
Diluted earnings (loss) per common share attributable to FMC stockholders: | ||
Continuing operations (in USD per share) | 1.55 | 1.67 |
Discontinued operations (in USD per share) | 0.07 | 0.29 |
Net income (loss) attributable to FMC stockholders (in USD per share) | $ 1.62 | $ 1.96 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 217.2 | $ 269.6 | |
Foreign currency adjustments: | |||
Foreign currency translation gain (loss) arising during the period | (2.4) | 49.7 | |
Total foreign currency translation adjustments | [1] | (2.4) | 49.7 |
Derivative instruments: | |||
Unrealized hedging gains (losses) and other, net of tax of zero and ($1.0) for the three months ended March 31, 2019 and 2018, respectively | 0.9 | ||
Reclassification of deferred hedging (gains) losses and other, included in net income, net of tax of ($1.0) and $0.1 for the three months ended March 31, 2019 and 2018, respectively (2) | [2] | (3.6) | |
Total derivative instruments, net of tax of ($1.0) and ($0.9) for the three months ended March 31, 2019 and 2018, respectively | (2.7) | ||
Unrealized hedging gains (losses) and other, net of tax of zero and ($1.0) for the three months ended March 31, 2019 and 2018, respectively | 1.5 | ||
Reclassification of deferred hedging (gains) losses and other, included in net income, net of tax of ($1.0) and $0.1 for the three months ended March 31, 2019 and 2018, respectively (2) | [2] | 0.4 | |
Total derivative instruments, net of tax of ($1.0) and ($0.9) for the three months ended March 31, 2019 and 2018, respectively | 1.9 | ||
Pension and other postretirement benefits: | |||
Unrealized actuarial gains (losses) and prior service (costs) credits, net of tax of zero and ($0.7) for the three months ended March 31, 2019 and 2018, respectively | [3] | 0 | 0.6 |
Reclassification of net actuarial and other (gain) loss and amortization of prior service costs, included in net income, net of tax of $0.9 and $1.6 for the three months ended March 31, 2019 and 2018, respectively | [2] | 3.4 | 3 |
Total pension and other postretirement benefits, net of tax of $0.9 and $0.9 for the three months ended March 31, 2019 and 2018, respectively | [4] | 3.4 | 3.6 |
Net current period other comprehensive income (loss) | (1.7) | 55.2 | |
Comprehensive income (loss) | 215.5 | 324.8 | |
Less: Comprehensive income (loss) attributable to the noncontrolling interest | 1.2 | 2.8 | |
Comprehensive income (loss) attributable to FMC stockholders | $ 214.3 | $ 322 | |
[1] | Income taxes are not provided for other additional outside basis differences inherent in our investments in subsidiaries because the investments and related unremitted earnings are essentially permanent in duration or we have concluded that no additional tax liability will arise upon disposal or remittance. | ||
[2] | For more detail on the components of these reclassifications and the affected line item in the condensed consolidated statements of income (loss) see Note 15. | ||
[3] | At December 31 of each year, we remeasure our pension and postretirement plan obligations at which time we record any actuarial gains (losses) and prior service (costs) credits to other comprehensive income. The interim adjustments noted above typically reflect the foreign currency translation impacts from the unrealized actuarial gains (losses) and prior service (costs) credits related to our foreign pension and postretirement plans. See Note 16 for more information. | ||
[4] | See condensed consolidated statements of comprehensive income (loss). |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parentheticals) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Unrealized hedging gains (losses) and other, tax | $ 0 | |
Reclassification of deferred hedging (gains) losses and other, included in net income, tax | (1) | |
Total derivative instruments, tax | (1) | |
Unrealized hedging gains (losses) and other, tax | $ (1) | |
Reclassification of deferred hedging (gains) losses and other, included in net income, tax | 0.1 | |
Total derivative instruments, tax | (0.9) | |
Unrealized actuarial gains (losses) and prior service (costs) credits, tax | 0 | (0.7) |
Reclassification of net actuarial and other (gain) loss and amortization of prior service costs, included in net income, tax | 0.9 | 1.6 |
Total pension and other postretirement benefits, tax | $ 0.9 | $ 0.9 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 109.5 | $ 134.4 |
Trade receivables, net of allowance of $27.3 in 2019 and $22.4 in 2018 | 2,530.2 | 2,143.8 |
Inventories | 1,137.1 | 1,025.5 |
Prepaid and other current assets | 427.3 | 432.6 |
Current assets of discontinued operations | 0 | 293.9 |
Total current assets | 4,204.1 | 4,030.2 |
Investments | 0.7 | 0.7 |
Property, plant and equipment, net | 733.8 | 756.9 |
Goodwill | 1,470.2 | 1,468.1 |
Other intangibles, net | 2,680.4 | 2,703.4 |
Other assets including long-term receivables, net | 578.8 | 383.4 |
Deferred income taxes | 278 | 272.8 |
Noncurrent assets of discontinued operations | 0 | 358.8 |
Total assets | 9,946 | 9,974.3 |
Current liabilities | ||
Short-term debt and current portion of long-term debt | 993.8 | 547.7 |
Accounts payable, trade and other | 884.5 | 795.5 |
Advance payments from customers | 283.3 | 458.4 |
Accrued and other liabilities | 537.2 | 570.8 |
Accrued customer rebates | 460.7 | 365.3 |
Guarantees of vendor financing | 78.4 | 67.1 |
Accrued pension and other postretirement benefits, current | 6.2 | 6.2 |
Income taxes | 93.5 | 85.1 |
Current liabilities of discontinued operations | 0 | 97.3 |
Total current liabilities | 3,337.6 | 2,993.4 |
Long-term debt, less current portion | 2,145 | 2,145 |
Accrued pension and other postretirement benefits, long-term | 46.1 | 47.2 |
Environmental liabilities, continuing and discontinued | 435.5 | 458.5 |
Deferred income taxes | 329.6 | 330.8 |
Other long-term liabilities | 860.4 | 742.9 |
Noncurrent liabilities of discontinued operations | 0 | 46.1 |
Commitments and contingent liabilities (Note 19) | ||
Equity | ||
Preferred stock, no par value, authorized 5,000,000 shares; no shares issued in 2019 or 2018 | 0 | 0 |
Common stock, $0.10 par value, authorized 260,000,000 shares; 185,983,792 issued shares in 2019 and 2018 | 18.6 | 18.6 |
Capital in excess of par value of common stock | 785.6 | 776.2 |
Retained earnings | 4,088.4 | 4,334.3 |
Accumulated other comprehensive income (loss) | (324.4) | (308.9) |
Treasury stock, common, at cost - 2019: 54,326,042 shares, 2018: 53,702,178 shares | (1,807.2) | (1,699.1) |
Total FMC stockholders’ equity | 2,761 | 3,121.1 |
Noncontrolling interests | 30.8 | 89.3 |
Total equity | 2,791.8 | 3,210.4 |
Total liabilities and equity | $ 9,946 | $ 9,974.3 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for trade receivables | $ 27.3 | $ 22.4 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.1 | $ 0.10 |
Common stock, shares authorized (in shares) | 260,000,000 | 260,000,000 |
Common stock, shares issued (in shares) | 185,983,792 | 185,983,792 |
Treasury stock, shares (in shares) | 54,326,042 | 53,702,178 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Cash provided (required) by operating activities of continuing operations: | |||
Net income (loss) | $ 217.2 | $ 269.6 | |
Discontinued operations, net of income taxes | (9.6) | (39.4) | |
Income (loss) from continuing operations | 207.6 | 230.2 | |
Adjustments from income from continuing operations to cash provided (required) by operating activities of continuing operations: | |||
Depreciation and amortization | 37.3 | 34.8 | |
Equity in (earnings) loss of affiliates | 0 | (0.1) | |
Restructuring and other charges (income) | 7.8 | (79.9) | |
Deferred income taxes | (6.1) | (22.1) | |
Pension and other postretirement benefits | 4.6 | 2.3 | |
Share-based compensation | 6.1 | 6.3 | |
Changes in operating assets and liabilities, net of effect of acquisitions and divestitures: | |||
Trade receivables, net | (389.4) | (331.4) | |
Guarantees of vendor financing | 11.3 | 15.7 | |
Inventories | (109.7) | (59.8) | |
Accounts payable, trade and other | 91 | 207.3 | |
Advance payments from customers | (175.3) | (189.7) | |
Accrued customer rebates | 95 | 142 | |
Income taxes | 28.1 | 88.1 | |
Pension and other postretirement benefit contributions | (1.6) | (2.4) | |
Environmental spending, continuing, net of recoveries | (3.5) | (2) | |
Restructuring and other spending | (5.8) | (4.4) | |
Transaction-related charges | (19.9) | (34) | |
Change in other operating assets and liabilities, net | [1] | (60.4) | (68.3) |
Cash provided (required) by operating activities of continuing operations | (282.9) | (67.4) | |
Cash provided (required) by operating activities of discontinued operations: | |||
Environmental spending, discontinued, net of recoveries | (4.8) | (3.7) | |
Other discontinued spending | (5.5) | (5) | |
Operating activities of discontinued operations, net of divestiture costs | 16 | (2.3) | |
Cash provided (required) by operating activities of discontinued operations | 5.7 | (11) | |
Cash provided (required) by investing activities of continuing operations: | |||
Capital expenditures | (19.1) | (14.8) | |
Proceeds from sale of product portfolios | 0 | 85 | |
Investment in Enterprise Resource Planning system | (12.6) | (9.4) | |
Acquisitions, net | [2] | 0 | 13.2 |
Other investing activities | (1.7) | (2.4) | |
Cash provided (required) by investing activities of continuing operations | (33.4) | 71.6 | |
Cash provided (required) by investing activities of discontinued operations: | |||
Proceeds from disposal of property, plant and equipment | 26.2 | 0 | |
Other discontinued investing activities | (17) | (26.5) | |
Cash provided (required) by investing activities of discontinued operations | 9.2 | (26.5) | |
Cash provided (required) by financing activities of continuing operations: | |||
Increase (decrease) in short-term debt | 445.6 | 138 | |
Repayments of long-term debt | (0.5) | (0.6) | |
Issuances of common stock, net | 11.7 | 3.9 | |
Dividends paid | [3] | (53.2) | (22.3) |
Repurchases of common stock under publicly announced program | (100) | 0 | |
Other repurchases of common stock | (16) | (5.1) | |
Cash provided (required) by financing activities of continuing operations | 287.6 | 113.9 | |
Cash provided (required) by financing activities of discontinued operations: | |||
Payment of Livent external debt | (27) | 0 | |
Cash transfer to Livent due to spin | (10.2) | 0 | |
Cash provided (required) by financing activities of discontinued operations | (37.2) | 0 | |
Effect of exchange rate changes on cash and cash equivalents | (1.2) | (3.9) | |
Increase (decrease) in cash and cash equivalents | (52.2) | 76.7 | |
Cash and cash equivalents of continuing operations, beginning of period | 109.5 | 358.3 | |
Cash and cash equivalents of discontinued operations, beginning of period | [4] | 27.3 | 1.2 |
Cash and cash equivalents, beginning of period | 161.7 | 283 | |
Cash and cash equivalents of discontinued operations, end of period | $ 0 | $ 1.4 | |
[1] | Changes in all periods primarily represent timing of payments associated with all other operating assets and liabilities. | ||
[2] | Represents the cash received as a result of the working capital settlement associated with the consideration paid for the DuPont Crop Protection Business. See Note 5 for more information on the non-cash consideration transferred to DuPont. | ||
[3] | See Note 15 regarding quarterly cash dividend. | ||
[4] | Reflected within "Current assets of discontinued operations" on the condensed consolidated balance sheets. |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Parentheticals) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Cash Flows [Abstract] | ||
Cash paid for interest, net of capitalized interest | $ 35,800,000 | $ 35,000,000 |
Income taxes paid, net of refunds | 34,100,000 | 12,000,000 |
Net interest payments allocated to discontinued operations | 0 | |
Tax payments, net of refunds, allocated to discontinued operations | 3,300,000 | |
Non-cash additions to property, plant and equipment | $ 600,000 | $ 300,000 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Changes in Equity Statement - USD ($) $ in Millions | Total | Common Stock, $0.10 Par Value | Capital In Excess of Par | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Non-controlling Interest | |
Beginning balance at Dec. 31, 2017 | $ 2,707.1 | $ 18.6 | $ 450.7 | $ 3,952.4 | $ (240.3) | $ (1,499.6) | $ 25.3 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 269.6 | 267.2 | 2.4 | |||||
Stock compensation plans | 10.2 | 6.5 | 3.7 | |||||
Net pension and other benefit actuarial gains (losses) and prior service costs, net of income tax | [1] | 3.6 | 3.6 | |||||
Net hedging gains (losses) and other, net of income tax | [1] | 1.9 | 1.9 | |||||
Foreign currency translation adjustments | [1] | 49.7 | 49.3 | 0.4 | ||||
Dividends | (22.3) | (22.3) | ||||||
Repurchases of common stock | (5.1) | (5.1) | ||||||
Ending balance at Mar. 31, 2018 | 3,014.7 | 18.6 | 457.2 | 4,197.3 | (185.5) | (1,501) | 28.1 | |
Beginning balance at Dec. 31, 2018 | 3,210.4 | 18.6 | 776.2 | 4,334.3 | (308.9) | (1,699.1) | 89.3 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 217.2 | 215.7 | 1.5 | |||||
Stock compensation plans | 16.6 | 9.4 | 7.2 | |||||
Shares for benefit plan trust | (1.1) | (1.1) | ||||||
Net pension and other benefit actuarial gains (losses) and prior service costs, net of income tax | [1] | 3.4 | 3.4 | |||||
Net hedging gains (losses) and other, net of income tax | [1] | (2.7) | (2.7) | |||||
Foreign currency translation adjustments | [1] | (2.4) | (2.1) | (0.3) | ||||
Dividends | (52.8) | (52.8) | ||||||
Repurchases of common stock | (114.2) | (114.2) | ||||||
Distribution of FMC Lithium | [2] | (485) | (464.3) | 39 | (59.7) | |||
Ending balance at Mar. 31, 2019 | $ 2,791.8 | $ 18.6 | $ 785.6 | $ 4,088.4 | $ (324.4) | $ (1,807.2) | $ 30.8 | |
[1] | See condensed consolidated statements of comprehensive income (loss). | |||||||
[2] | Represents the effects of the distribution of FMC Lithium. Refer to Note 1 for further information. |
Condensed Consolidated Statem_7
Condensed Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends (in USD per share) | $ 0.4 | $ 0.165 |
Financial Information and Accou
Financial Information and Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Financial Information and Accounting Policies | Financial Information and Accounting Policies In our opinion the condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) applicable to interim period financial statements and reflect all adjustments necessary for a fair statement of results of operations for the three months ended March 31, 2019 and 2018 , cash flows for the three months ended March 31, 2019 and 2018 , changes in equity for the three months ended March 31, 2019 and 2018 , and our financial positions as of March 31, 2019 and December 31, 2018 . All such adjustments included herein are of a normal, recurring nature unless otherwise disclosed in the Notes. The results of operations for the three months ended March 31, 2019 and 2018 are not necessarily indicative of the results of operations for the full year. The condensed consolidated balance sheets as of March 31, 2019 and December 31, 2018 , and the related condensed consolidated statements of income (loss) and condensed consolidated statements of comprehensive income (loss) for the three months ended March 31, 2019 and 2018 , condensed consolidated statements of cash flows for the three months ended March 31, 2019 and 2018 , and condensed consolidated statements of changes in equity for the three months ended March 31, 2019 and 2018 have been reviewed by our independent registered public accountants. The review is described more fully in their report included herein. Our accounting policies are set forth in detail in Note 1 to the consolidated financial statements included with our Annual Report on Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 2018 (the “ 2018 Form 10-K”). However, see below on changes in the composition of our segments since the 2018 Form 10-K. In March 2017, we announced our intention to separate the FMC Lithium segment (subsequently renamed Livent Corporation, or "Livent") into a publicly traded company. The initial step of the separation, the initial public offering ("IPO") of Livent, closed on October 15, 2018 . In connection with the IPO, Livent had granted the underwriters an option to purchase additional shares of common stock to cover over-allotments at the IPO price, less the underwriting discount. On November 8, 2018 , the underwriters exercised in full their option to purchase additional shares. After completion of the IPO and the underwriters' exercise to purchase additional shares of common stock, we owned 123 million shares of Livent's common stock, representing approximately 84 percent of the total outstanding shares of Livent's common stock. On March 1, 2019 , we completed the previously announced distribution of 123 million shares of common stock of Livent as a pro rata dividend on shares of FMC common stock outstanding at the close of business on the record date of February 25, 2019 . We have recast all the data within this filing to present FMC Lithium as a discontinued operation retrospectively for all periods presented. |
Recently Issued and Adopted Acc
Recently Issued and Adopted Accounting Pronouncements and Regulatory Items | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Recently Issued and Adopted Accounting Pronouncements and Regulatory Items | Recently Issued and Adopted Accounting Pronouncements and Regulatory Items New accounting guidance and regulatory items In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-15, Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The amendments in this ASU align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The new standard is effective for fiscal years beginning after December 15, 2019 (i.e. a January 1, 2020 effective date). We are evaluating the effect the guidance will have on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-14, Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans . The amendments in this ASU modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The new standard is effective for fiscal years ending after December 15, 2020. We are evaluating the effect the guidance will have on our consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . This ASU changes the subsequent measurement of goodwill impairment by eliminating Step 2 from the impairment test. Under the new guidance, an entity will measure impairment using the difference between the carrying amount and the fair value of the reporting unit. The new standard is effective for fiscal years beginning after December 15, 2019 (i.e. a January 1, 2020 effective date), with early adoption permitted for goodwill impairment tests with measurement dates after January 1, 2017. We believe the adoption will not have a material impact on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses. The update is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The new standard is effective for fiscal years beginning after December 15, 2019 (i.e. a January 1, 2020 effective date), with early adoption permitted for fiscal years beginning after December 15, 2018. We are evaluating the effect the guidance will have on our consolidated financial statements. Recently adopted accounting guidance In February 2018, the FASB issued ASU No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . This new standard permits a company to reclassify the income tax effects of the change in the U.S federal corporate income tax rate on the gross deferred tax amounts and related valuation allowances as well as other income tax effects related to the application of the Tax Cuts and Jobs Act (the "Act") within accumulated other comprehensive income ("AOCI") to retained earnings. The new standard also requires certain disclosures about stranded tax effects. The new standard is effective for fiscal years beginning after December 15, 2018 (i.e. a January 1, 2019 effective date), and interim periods within those fiscal years, with early adoption permitted. We adopted this standard prospectively as of January 1, 2019 and reclassified $53.1 million of the stranded income tax effects from accumulated other comprehensive income (loss) to retained earnings. The reclassification was related to the change in the U.S. federal corporate tax rate and the effect of the Act on our pension plans and derivative instruments. This reclassification is reflected within the condensed consolidated statement of changes in equity for the current period. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . This ASU amends and simplifies existing hedge accounting guidance and allows for more hedging strategies to be eligible for hedge accounting. In addition, the ASU amends disclosure requirements and how hedge effectiveness is assessed. The presentation and disclosure guidance is required to be adopted prospectively. The new standard is effective for fiscal years beginning after December 15, 2018 (i.e. a January 1, 2019 effective date), with early adoption permitted in any interim period after issuance of this ASU. We adopted this standard as of January 1, 2019. There was no material impact to our consolidated financial statements upon adoption. In February 2016, the FASB issued its new lease accounting guidance in ASU No. 2016-02, Leases (Topic 842) ("ASC 842"). Under the new guidance, lessees will be required to recognize for all leases (with the exception of short-term leases) a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis and a right-of-use ("ROU") asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years (i.e. a January 1, 2019 effective date). In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases to make technical corrections and clarify the application of the new lease standard. In adopting this standard, we performed a detailed review of contracts of our business and assessed the terms under ASC 842. Additionally, we assessed potential impacts on our internal controls and processes related to both the implementation and ongoing compliance of the new guidance. We have adopted this standard as of January 1, 2019 utilizing a modified retrospective approach and have elected the transition practical expedient package. Under this transition practical expedient package, ASC 842 was only applied to contracts that existed as of, or were entered into on or after, January 1, 2019, and a cumulative effect adjustment was made as of January 1, 2019. All comparative periods prior to January 1, 2019 will retain the financial reporting and disclosure requirements of ASC 840. The adoption of ASC 842 had a material impact on our consolidated balance sheet but did not have a material impact on the consolidated statement of income, consolidated statement of comprehensive income, consolidated statement of cash flows, and consolidated statement of changes in equity. As a result of adoption, we recorded additional ROU lease assets and lease liabilities of $185.3 million and $215.9 million , respectively. ROU lease assets includes a reclassification of $30.6 million of prepaid rent, accrued rent, and lease incentives previously recorded under ASC 840. Additionally, we recorded a retained earnings impact of $2.4 million as of January 1, 2019. Refer to Note 4 for further information. The expedient package allowed us not to reassess whether existing contracts contain a lease under the new definition of a lease, the lease classification of existing leases, and initial direct cost for existing leases including whether such costs would qualify for capitalization under the standard. Additionally, we elected the practical expedient to not separate non-lease components from lease components. In addition to these practical expedients, we elected the following exemption permissible under ASC 842: the exclusion of leases with terms 12 months or less that do not have a purchase option or extension that is reasonably certain to exercise. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Disaggregation of revenue We disaggregate revenue from contracts with customers by geographical areas and major product categories. We have three major agricultural pesticide product categories: insecticides, herbicides, and fungicides. The disaggregated revenue tables are shown below for the three months ended March 31, 2019 and 2018 . The following table provides information about disaggregated revenue by major geographical region: Three Months Ended March 31, (in Millions) 2019 2018 North America $ 318.3 $ 298.2 Latin America 206.5 158.9 Europe, Middle East & Africa (EMEA) 412.0 398.8 Asia Pacific 255.3 252.0 Total Revenue $ 1,192.1 $ 1,107.9 The following table provides information about disaggregated revenue by major product category: Three Months Ended March 31, (in Millions) 2019 2018 Insecticides $ 703.4 $ 589.3 Herbicides 361.6 385.7 Fungicides 70.5 79.0 Other 56.6 53.9 Total Revenue $ 1,192.1 $ 1,107.9 We earn revenue from the sale of a wide range of products to a diversified base of customers around the world. Our portfolio is comprised of three major pesticide categories: insecticides, herbicides and fungicides. These products are used in agriculture to enhance crop yield and quality by controlling a broad spectrum of insects, weeds and disease, as well as in non-agricultural markets for pest control. The majority of our product lines consist of insecticides and herbicides, with a smaller portfolio of fungicides mainly used in high value crop segments. Our insecticides are used to control a wide spectrum of pests, while our herbicide portfolio primarily targets a large variety of difficult-to-control weeds. Products in the other category include various agricultural products such as smaller classes of pesticides, growth promoters, and soil enhancements. Sale of Goods Revenue from product sales is recognized when (or as) we satisfy a performance obligation by transferring the promised goods to a customer, that is, when control of the good transfers to the customer. The customer is then invoiced at the agreed-upon price with payment terms generally ranging from 30 to 90 days, with some regions providing terms longer than 90 days. We do not typically give payment terms that exceed 360 days; however, in certain geographical regions such as Latin America, these terms may be given in limited circumstances. Additionally, a timing difference of over one year can exist between when products are delivered to the customer and when payment is received from the customer in these regions; however, the effect of these sales is not material to the financial statements as a whole. Furthermore, we have assessed the circumstances and arrangements in these regions and determined that the contracts with these customers do not contain a significant financing component. In determining when the control of goods is transferred, we typically assess, among other things, the transfer of risk and title and the shipping terms of the contract. The transfer of title and risk typically occurs either upon shipment to the customer or upon receipt by the customer. As such, we typically recognize revenue when goods are shipped based on the relevant Incoterm for the product order, or in some regions, when delivery to the customer’s requested destination has occurred. When we perform shipping and handling activities after the transfer of control to the customer (e.g., when control transfers prior to delivery), they are considered as fulfillment activities, and accordingly, the costs are accrued for when the related revenue is recognized. For FOB shipping point terms, revenue is recognized at the time of shipment since the customer gains control at this point in time. We record amounts billed for shipping and handling fees as revenue. Costs incurred for shipping and handling are recorded as costs of sales and services. Amounts billed for sales and use taxes, value-added taxes, and certain excise and other specific transactional taxes imposed on revenue-producing transactions are presented on a net basis and excluded from sales in the consolidated income statements. We record a liability until remitted to the respective taxing authority. Sales Incentives and Other Variable Considerations As a part of our customary business practice, we offer a number of sales incentives to our customers including volume discounts, retailer incentives, and prepayment options. The variable considerations given can differ by products, support levels and other eligibility criteria. For all such contracts that include any variable consideration, we estimate the amount of variable consideration that should be included in the transaction price utilizing either the expected value method or the most likely amount method depending on the nature of the variable consideration. Variable consideration is included in the transaction price if, in our judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Although determining the transaction price for these considerations requires significant judgment, we have significant historical experience with incentives provided to customers and estimate the expected consideration considering historical patterns of incentive payouts. These estimates are reassessed each reporting period as required. In addition to the variable considerations describe above, in certain instances, we may require our customers to meet certain volume thresholds within their contract term. We estimate what amount of variable consideration should be included in the transaction price at contract inception and continually reassess this estimation each reporting period to determine situations when the minimum volume thresholds will not be met. Variable consideration is included in the transaction price if, in our judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Right of Return We extend an assurance warranty offering customers a right of refund or exchange in case delivered product does not conform to specifications. Additionally, in certain regions and arrangements, we may offer a right of return for a specified period. Both instances are accounted for as a right of return and transaction price is adjusted for an estimate of expected returns. Replacement products are accounted for under the warranty guidance if the customer exchanges one product for another of the same kind, quality, and price. We have significant experience with historical return patterns and use this experience to include returns in the estimate of transaction price. Contract asset and contract liability balances We satisfy our obligations by transferring goods and services in exchange for consideration from customers. The timing of performance sometimes differs from the timing the associated consideration is received from the customer, thus resulting in the recognition of a contract asset or contract liability. We recognize a contract liability if the customer's payment of consideration is received prior to completion of our related performance obligation. The following table presents the opening and closing balances of our receivables, net of allowances and contract liabilities from contracts with customers. (in Millions) Balance as of December 31, 2018 Balance as of March 31, 2019 Increase (Decrease) Receivables from contracts with customers, net of allowances $ 2,228.3 $ 2,619.5 $ 391.2 Contract liabilities: Advance payments from customers 458.4 283.3 (175.1 ) The amount of revenue recognized in the three months ended March 31, 2019 that was included in the opening contract liability balance is $175.1 million . The balance of receivables from contracts with customers listed in the table above include both current trade receivables and long-term receivables, net of allowance for doubtful accounts. The allowance for receivables represents our best estimate of the probable losses associated with potential customer defaults. We determine the allowance based on historical experience, current collection trends, and external business factors such as economic factors, including regional bankruptcy rates, and political factors. The change in allowance for doubtful accounts for both current trade receivables and long-term receivables is representative of the impairment of receivables as of March 31, 2019 . Refer to Note 7 for further information. We periodically enter into prepayment arrangements with customers and receive advance payments for product to be delivered in future periods. Prepayment terms are extended to customers/distributors in order to capitalize on surplus cash with growers. Growers receive bulk payments for their produce, which they leverage to buy our products from distributors through prepayment options. This in turn creates opportunity for distributors to make large prepayments to us for securing the future supply of products to be sold to growers. Prepayments are typically received in the fourth quarter of the fiscal year and are for the following marketing year indicating that the time difference between prepayment and performance of corresponding performance obligations does not exceed one year. We recognize these prepayments as a liability under “Advance Payments from customers” on the condensed consolidated balance sheets when they are received. Revenue associated with advance payments is recognized as shipments are made and transfer of control to the customer takes place. Advance payments from customers was $458.4 million as of December 31, 2018 and $283.3 million as of March 31, 2019 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases We lease office space, vehicles and other equipment under non-cancellable leases with initial terms typically ranging from 1 to 20 years, with some leases having terms greater than 20 years. Our lease portfolio includes agreements with renewal options, purchase options and clauses for early termination based on the terms specific to the agreement. At contract inception, we review the facts and circumstances of the arrangement to determine if the contract is a lease. We follow the guidance in ASC 842-10-15 and consider the following: whether the contract has an identified asset; if we have the right to obtain substantially all economic benefits from the asset; and if we have the right to direct the use of the underlying asset. When determining if a contract has an identified asset, we consider both explicit and implicit assets, and whether the supplier has the right to substitute the asset. When determining if we have the right to obtain substantially all economic benefits from the asset, we consider the primary outputs of the identified asset throughout the period of use and determine if we receive greater than 90% of those benefits. When determining if we have the right to direct the use of an underlying asset, we consider if we have the right to direct how and for what purpose the asset is used throughout the period of use and if we control the decision-making rights over the asset. All leased assets are classified as operating or finance under ASC 842. The lease term is determined as the non-cancellable period of the lease, together with all of the following: periods covered by an option to extend the lease which are reasonably certain to be exercised, periods covered by an option to terminate the lease if the lessee is reasonably certain not to exercise that option, and periods covered by an option to extend (or not to terminate) the lease in which exercise of the option is controlled by the lessor. At commencement, we assess whether any options included in the lease are reasonably certain to be exercised by considering all economic factors relevant including, contract-based, asset-based, market-based, and company-based factors. To determine the present value of future minimum lease payments, we use the implicit rate when readily determinable or our incremental borrowing rate at the lease commencement date. When determining our incremental borrowing rate, we consider our centralized treasury function and our current credit profile. We then make adjustments to this rate for securitization, the length of the lease term, and leases denominated in foreign currencies. Minimum lease payments are expensed over the term of the lease on a straight-line basis. Some leases may require additional contingent or variable lease payments based on factors specific to the individual agreement. Variable lease payments for which we are typically responsible for include payment of vehicle insurance, real estate taxes, and maintenance expenses. Most leases within our portfolio are classified as operating leases under the new standard. Operating leases are included in “Other assets including long-term receivables, net”, “Accrued and other liabilities”, and “Other long-term liabilities” in our condensed consolidated balance sheet. Operating lease right-of-use (“ROU”) assets are subsequently measured throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of any lease incentives received. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Operating leases relate to office spaces, IT equipment, transportation equipment, machinery equipment, furniture and fixtures, and plant and facilities under non-cancellable lease agreements. Leases primarily have fixed rental periods, with many of the real estate leases requiring additional payments for property taxes and occupancy-related costs. Leases for real estate typically have initial terms ranging from 1 to 20 years, with some leases having terms greater than 20 years. Leases for non-real estate (transportation, IT) typically have initial terms ranging from 1 to 10 years. We have elected not to record short-term leases on the balance sheet whose term is 12 months or less and does not include a purchase option or extension that is reasonably certain to be exercised. We rent or sublease a small number of assets including equipment and office space to third party companies. These third-party arrangements include a small number of TSA arrangements with E. I. du Pont de Nemours and Company. We also sublease a floor of our Corporate headquarters to our former subsidiary, Livent Corporation. Rental income from all subleases is not material to our business. The ROU asset and lease liability balances as of March 31, 2019 were as follows: (in Millions) Classification Balance at March 31, 2019 Assets Operating lease ROU assets Other assets including long-term receivables, net $ 175.5 Liabilities Operating lease current liabilities Accrued and other liabilities $ 31.1 Operating lease noncurrent liabilities Other long-term liabilities 175.5 The components of lease expense for the three months ended March 31, 2019 were as follows: (in Millions) Lease Cost Classification Three Months Ended March 31, 2019 Operating lease cost Cost of sales and services / Selling, general and administrative expenses $ 10.0 Variable lease cost Cost of sales and services / Selling, general and administrative expenses 1.3 Total lease cost $ 11.3 March 31, 2019 Operating Lease Term and Discount Rate Weighted-average remaining lease term (years) 10.5 Weighted-average discount rate 4.30 % (in Millions) Three Months Ended March 31, 2019 Other Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (10.3 ) Supplemental non-cash information on lease liabilities arising from obtaining right-of-use assets: Right-of-use assets obtained in exchange for new operating lease liabilities $ 0.3 The following table represents our future minimum operating lease payments as of, and subsequent to, March 31, 2019 under ASC 842: (in Millions) Operating Leases Total Maturity of Lease Liabilities 2019 (excluding the three months ending March 31, 2019) $ 29.2 2020 34.7 2021 24.1 2022 20.7 2023 16.7 Thereafter 136.5 Total undiscounted lease payments $ 261.9 Less: Present value adjustment (55.3 ) Present value of lease liabilities $ 206.6 Our future minimum lease payments as of December 31, 2018 under ASC 840 were as follows: Future Minimum Lease Payments (in Millions) 2019 2020 2021 2022 2023 Thereafter Operating Leases $ 36.7 $ 31.7 $ 21.0 $ 17.5 $ 13.5 $ 107.5 Capital Lease 2.9 2.9 3.1 3.1 3.1 4.3 |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions DuPont Crop Protection Business On November 1, 2017, pursuant to the terms and conditions set forth in the Transaction Agreement entered into with E. I. du Pont de Nemours and Company ("DuPont"), we completed the acquisition of certain assets relating to DuPont's Crop Protection business and research and development ("R&D") organization (the "DuPont Crop Protection Business") (collectively, the "DuPont Crop Protection Business Acquisition"). In connection with this transaction, we sold to DuPont our FMC Health and Nutrition segment and paid DuPont $1.2 billion in cash which was funded with the 2017 Term Loan Facility which was secured for the purposes of the acquisition. The following table illustrates each component of the consideration paid as part of the DuPont Crop Protection Business Acquisition: (in Millions) Amount Cash purchase price, net (1) $ 1,225.6 Cash proceeds from working capital and other adjustments (21.5 ) Fair value of FMC Health and Nutrition sold to DuPont 1,968.6 Total purchase consideration $ 3,172.7 ____________________ (1) Represents the cash portion of the total purchase consideration paid for the DuPont Crop Protection Business Acquisition. As part of the DuPont Crop Protection Business Acquisition, we acquired various manufacturing contracts. The manufacturing contracts have been recognized as an asset or liability to the extent the terms of the contract are favorable or unfavorable compared with market terms of the same or similar items at the date of the acquisition. We also entered into supply agreements with DuPont, with terms of up to five years, to supply technical insecticide products required for their retained seed treatment business at cost. The unfavorable liability is recorded within both "Accrued and other liabilities" and "Other long-term liabilities" on the condensed consolidated balance sheets and is reduced and recognized to revenues within earnings as sales are made. The amount recognized in revenue for the three months ended March 31, 2019 was approximately $27 million . Certain manufacturing sites and R&D sites were transferred to us at a later date due to various local timing constraints; however, we obtained the economic benefit from these sites during the period from November 1, 2017 to when the sites legally transfer. No additional consideration was paid at the date of transfer. A portion of one site is expected to transfer in the fourth quarter of 2019. The DuPont Crop Protection Business is being integrated into our business and has been included within our results of operations since the date of acquisition. The purchase price allocation was considered complete in 2018. Refer to Note 4 of our 2018 Form 10-K for further information. Transaction-related charges Pursuant to U.S. GAAP, costs incurred associated with acquisition activities are expensed as incurred. Historically, these costs have primarily consisted of legal, accounting, consulting, and other professional advisory fees associated with the preparation and execution of these activities. Given the significance and complexity around the integration of the DuPont Crop Protection Business, we have incurred to date, and expect to incur, costs associated with integrating the DuPont Crop Protection Business, planning for the exit of the transitional service agreement as well as implementation of a new worldwide Enterprise Resource Planning system as a result of the transitional service agreement exit, the majority of which will be capitalized in accordance with the relevant accounting literature. These costs have been, and are expected to be, significant and we anticipate the majority of these charges will be completed by the first quarter of 2020. The following table summarizes the costs incurred associated with these activities. Three Months Ended March 31, (in Millions) 2019 2018 DuPont Crop Protection Business Acquisition Legal and professional fees (1) $ 16.5 $ 19.6 Inventory fair value amortization (2) — 29.9 Total Transaction-related charges $ 16.5 $ 49.5 Restructuring charges DuPont Crop restructuring (3) $ 3.9 $ 1.0 Total DuPont Crop restructuring charges $ 3.9 $ 1.0 ____________________ (1) Represents transaction costs, costs for transitional employees, other acquired employees related costs, and transactional-related costs such as legal and professional third-party fees. These charges are recorded as a component of “Selling, general and administrative expense" on the condensed consolidated statements of income (loss). (2) These charges are recorded as a component of "Costs of sales and services" on the condensed consolidated statements of income (loss). (3) |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The changes in the carrying amount of goodwill are presented in the table below: (in Millions) Total Balance, December 31, 2018 $ 1,468.1 Foreign currency and other adjustments 2.1 Balance, March 31, 2019 $ 1,470.2 There were no events or circumstances indicating that goodwill might be impaired as of March 31, 2019. Our intangible assets, other than goodwill, consist of the following: March 31, 2019 December 31, 2018 (in Millions) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Intangible assets subject to amortization (finite-lived) Customer relationships $ 1,142.4 $ (142.4 ) $ 1,000.0 $ 1,146.2 $ (128.7 ) $ 1,017.5 Patents 1.7 (0.8 ) 0.9 1.7 (0.8 ) 0.9 Brands (1) (2) 16.8 (6.2 ) 10.6 17.0 (5.9 ) 11.1 Purchased and licensed technologies 61.0 (32.8 ) 28.2 61.3 (32.1 ) 29.2 Other intangibles 1.9 (1.8 ) 0.1 1.9 (1.8 ) 0.1 $ 1,223.8 $ (184.0 ) $ 1,039.8 $ 1,228.1 $ (169.3 ) $ 1,058.8 Intangible assets not subject to amortization (indefinite-lived) Crop Protection Brands (3) $ 1,259.1 $ 1,259.1 $ 1,259.1 $ 1,259.1 Brands (1) (2) 380.8 380.8 384.8 384.8 In-process research & development 0.7 0.7 0.7 0.7 $ 1,640.6 $ 1,640.6 $ 1,644.6 $ 1,644.6 Total intangible assets $ 2,864.4 $ (184.0 ) $ 2,680.4 $ 2,872.7 $ (169.3 ) $ 2,703.4 ____________________ (1) Represents trademarks, trade names and know-how. (2) The majority of the Brands relate to our proprietary brand portfolios acquired from the Cheminova acquisition. (3) Represents the proprietary brand portfolios, consisting of trademarks, trade names and know-how, acquired from the DuPont Crop Protection Business Acquisition. Three Months Ended March 31, (in Millions) 2019 2018 Amortization expense $ 15.6 $ 13.5 The full year estimated pre-tax amortization expense for the year ended December 31, 2019 and each of the succeeding five years is approximately $62 million , $62 million , $62 million , $62 million , $62 million , and $61 million |
Receivables
Receivables | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Receivables | Receivables The following table displays a roll forward of the allowance for doubtful trade receivables. (in Millions) Balance, December 31, 2017 $ 38.6 Additions - charged to expense (1) 58.0 Transfer from (to) allowance for credit losses (see below) (17.3 ) Net recoveries, write-offs and other (1) (56.9 ) Balance, December 31, 2018 $ 22.4 Additions - charged to expense 3.0 Net recoveries, write-offs and other 1.9 Balance, March 31, 2019 $ 27.3 ____________________ (1) Includes the charge and write-off of approximately $42 million associated with the stranded accounts receivables written off as part of the restructuring in India. Refer to Note 8 to our consolidated financial statements included with our 2018 Form 10-K for further information. The charge was recorded as a component of "Restructuring and other charges (income)" on the consolidated statements of income (loss). We have non-current receivables that represent long-term customer receivable balances related to past due accounts which are not expected to be collected within the current year. The net long-term customer receivables were $89.3 million as of March 31, 2019 . These long-term customer receivable balances and the corresponding allowance are included in "Other assets including long-term receivables, net" on the condensed consolidated balance sheets. A portion of these long-term receivables have payment contracts. We have no reason to believe payments will not be made based upon the credit quality of these customers. Additionally, we also hold significant collateral against these customers including rights to property or other assets as a form of credit guarantee. If the customer does not pay or gives indication that they will not pay, these guarantees allow us to start legal action to block the sale of the customer’s harvest. On an ongoing basis, we continue to evaluate the credit quality of our non-current receivables using aging of receivables, collection experience and write-offs, as well as evaluating existing economic conditions, to determine if an additional allowance is necessary. The following table displays a roll forward of the allowance for credit losses related to long-term customer receivables. ( in Millions ) Balance, December 31, 2017 $ 47.1 Additions - charged to expense 13.4 Transfer from (to) allowance for doubtful accounts (see above) 17.3 Foreign currency adjustments (4.1 ) Net recoveries, write-offs and other (13.2 ) Balance, December 31, 2018 $ 60.5 Additions - charged to expense 7.4 Foreign currency adjustments 0.3 Balance, March 31, 2019 $ 68.2 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following: (in Millions) March 31, 2019 December 31, 2018 Finished goods $ 357.7 $ 430.4 Work in process 584.7 518.8 Raw materials, supplies and other 327.8 206.9 First-in, first-out inventory $ 1,270.2 $ 1,156.1 Less: Excess of first-in, first-out cost over last-in, first-out cost (133.1 ) (130.6 ) Net inventories $ 1,137.1 $ 1,025.5 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment consisted of the following: (in Millions) March 31, 2019 December 31, 2018 Property, plant and equipment $ 1,028.4 $ 1,045.0 Accumulated depreciation (294.6 ) (288.1 ) Property, plant and equipment, net $ 733.8 $ 756.9 |
Restructuring and Other Charges
Restructuring and Other Charges (Income) | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges (Income) | Restructuring and Other Charges (Income) Our restructuring and other charges (income) are comprised of restructuring, asset disposals and other charges (income) as noted below. Three Months Ended March 31, (in Millions) 2019 2018 Restructuring charges $ 5.2 $ 2.6 Other charges (income), net 2.6 (82.5 ) Total restructuring and other charges (income) $ 7.8 $ (79.9 ) Restructuring charges For detail on restructuring activities which commenced prior to 2019 , see Note 8 to our consolidated financial statements included within our 2018 Form 10-K. Restructuring Charges (in Millions) Severance and Employee Benefits (1) Other Charges (Income) (2) Asset Disposal Charges (3) Total DuPont Crop restructuring $ 2.7 $ 1.0 $ 0.2 $ 3.9 Other items — — 1.3 1.3 Three Months Ended March 31, 2019 $ 2.7 $ 1.0 $ 1.5 $ 5.2 DuPont Crop restructuring $ — $ — $ 1.0 $ 1.0 Other Items — 1.6 — 1.6 Three Months Ended March 31, 2018 $ — $ 1.6 $ 1.0 $ 2.6 ____________________ (1) Represents severance and employee benefit charges. (2) Primarily represents third-party costs associated with miscellaneous restructuring activities. (3) Primarily represents asset write-offs and accelerated depreciation on long-lived assets, which were or are to be abandoned. To the extent incurred, the acceleration effect of re-estimating settlement dates and revised cost estimates associated with asset retirement obligations due to facility shutdowns, are also included within the asset disposal charges. Roll forward of restructuring reserves The following table shows a roll forward of restructuring reserves, continuing and discontinued, that will result in cash spending. These amounts exclude asset retirement obligations. (in Millions) Balance at 12/31/18 (2) Change in reserves (3) Cash payments Other Balance at 3/31/19 (2) DuPont Crop restructuring $ 16.2 $ 3.7 $ (5.1 ) $ (0.2 ) $ 14.6 Other workforce related and facility shutdowns (1) 1.0 — (0.7 ) 0.5 0.8 Total $ 17.2 $ 3.7 $ (5.8 ) $ 0.3 $ 15.4 ____________________ (1) Primarily severance costs related to workforce reductions and facility shutdowns. (2) Included in "Accrued and other liabilities" on the condensed consolidated balance sheets. (3) Primarily severance, exited lease, contract termination and other miscellaneous exit costs. Any accelerated depreciation and impairment charges noted above that impacted our property, plant and equipment balances or other long-term assets are not included in the above tables. Other charges (income), net Three Months Ended March 31, (in Millions) 2019 2018 Environmental charges, net $ 2.6 $ 2.5 Product portfolio sales — (85.0 ) Other charges (income), net $ 2.6 $ (82.5 ) Environmental charges, net Environmental charges represent the net charges associated with environmental remediation at continuing operating sites. See Note 13 for additional details. Environmental obligations for continuing operations primarily represent obligations at shut down or abandoned facilities within businesses that do not meet the criteria for presentation as discontinued operations. Product portfolio sales |
Debt
Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt maturing within one year: (in Millions) March 31, 2019 December 31, 2018 Short-term foreign debt (1) $ 114.7 $ 106.5 Commercial paper (2) 493.5 55.2 Total short-term debt $ 608.2 $ 161.7 Current portion of long-term debt 385.6 386.0 Total short-term debt and current portion of long-term debt $ 993.8 $ 547.7 ____________________ (1) At March 31, 2019 , the average interest rate on the borrowings was 7.5 percent . (2) At March 31, 2019 , the average effective interest rate on the borrowings was 3.1 percent . Long-term debt: (in Millions) March 31, 2019 Interest Rate Percentage Maturity Date March 31, 2019 December 31, 2018 Pollution control and industrial revenue bonds (less unamortized discounts of $0.2 and $0.2, respectively) 1.7 - 6.5% 2021 - 2032 $ 51.6 $ 51.6 Senior notes (less unamortized discount of $0.7 and $0.8, respectively) 3.95 - 5.2% 2019 - 2024 999.3 999.2 2017 Term Loan Facility 3.7% 2022 1,400.0 1,400.0 Revolving Credit Facility (1) 5.1% 2022 — — Foreign debt 0 - 7.2% 2019 - 2024 88.0 89.1 Debt issuance cost (8.3 ) (8.9 ) Total long-term debt $ 2,530.6 $ 2,531.0 Less: debt maturing within one year 385.6 386.0 Total long-term debt, less current portion $ 2,145.0 $ 2,145.0 ____________________ (1) Letters of credit outstanding under our Revolving Credit Facility totaled $192.1 million and available funds under this facility were $814.3 million at March 31, 2019 . Covenants Among other restrictions, our Revolving Credit Facility and 2017 Term Loan Facility contain financial covenants applicable to FMC and its consolidated subsidiaries related to leverage (measured as the ratio of debt to adjusted earnings) and interest coverage (measured as the ratio of adjusted earnings to interest expense). Our actual leverage for the four consecutive quarters ended March 31, 2019 was 2.7 , which is below the maximum leverage of 4.5 at March 31, 2019 . Our actual interest coverage for the four consecutive quarters ended March 31, 2019 was 9.3 , which is above the minimum interest coverage of 3.5 . We were in compliance with all covenants at March 31, 2019 |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations FMC Lithium (Livent Corporation): On March 1, 2019, we completed the previously announced distribution of 123 million shares of common stock of Livent as a pro rata dividend on shares of FMC common stock outstanding at the close of business on the record date of February 25, 2019. Refer to Note 1 for further information. The results of our discontinued FMC Lithium operations are summarized below: (in Millions) Three Months Ended March 31, 2019 2018 Revenue $ 52.1 $ 102.8 Costs of sales and services 41.3 50.6 Income (loss) from discontinued operations before income taxes (1) $ 1.1 $ 43.8 Provision (benefit) for income taxes 6.0 8.8 Total discontinued operations of FMC Lithium, net of income taxes, before separation-related costs and other adjustments $ (4.9 ) $ 35.0 Separation-related costs and other adjustments of discontinued operations of FMC Lithium, net of income taxes (5.1 ) (2.1 ) Discontinued operations of FMC Lithium, net of income taxes $ (10.0 ) $ 32.9 ____________________ (1) For the three months ended March 31, 2018, amounts include $2.2 million of restructuring and other charges (income). The following table presents the major classes of assets and liabilities of FMC Lithium: (in Millions) March 31, 2019 December 31, 2018 Assets Current assets of discontinued operations (1) $ — $ 293.9 Property, plant and equipment (2) — 275.7 Other noncurrent assets (2) — 83.1 Total assets of discontinued operations $ — $ 652.7 Liabilities Current liabilities of discontinued operations (3) $ — $ 97.3 Noncurrent liabilities of discontinued operations (4) — 46.1 Total liabilities of discontinued operations $ — $ 143.4 Total net assets $ — $ 509.3 ____________________ (1) Primarily consists of cash and cash equivalents, trade receivables, and inventories. Presented as "Current assets of discontinued operations" on the condensed consolidated balance sheets as of December 31, 2018 . (2) Presented as "Noncurrent assets of discontinued operations" on the condensed consolidated balance sheets as of December 31, 2018 . (3) Presented as "Current liabilities of discontinued operations" on the condensed consolidated balance sheets as of December 31, 2018 . (4) Presented as "Noncurrent liabilities of discontinued operations" on the condensed consolidated balance sheets as of December 31, 2018 . FMC Health and Nutrition: On November 1, 2017, we completed the previously disclosed sale of our FMC Health and Nutrition business to DuPont. The sale resulted in a gain of approximately $918 million ( $727 million , net of tax). In connection with the sale, we entered into a customary transitional services agreement with DuPont to provide for the orderly separation and transition of various functions and processes. These services will be provided by us to DuPont for up to an initial 24 months after closing, with an additional six months extension. These services include information technology services, accounting, human resource and facility services among other services, while DuPont assumes the operations of FMC Health and Nutrition. Certain sites were to transfer at a later date due to various local timing constraints. In May 2018, the last site transferred to DuPont. The results of our discontinued FMC Health and Nutrition operations are summarized below, including the results of these delayed sites included in the three months ended March 31, 2018: (in Millions) Three Months Ended March 31, 2019 2018 Revenue $ — $ 2.9 Costs of sales and services — 2.8 Income (loss) from discontinued operations before income taxes (1) $ — $ (3.1 ) Provision (benefit) for income taxes — (0.6 ) Total discontinued operations of FMC Health and Nutrition, net of income taxes, before divestiture related costs and adjustments $ — $ (2.5 ) Adjustment to gain on sale of FMC Health and Nutrition, net of income taxes — 16.2 Divestiture related costs and other adjustments of discontinued operations of FMC Health and Nutrition, net of income taxes 0.7 (0.5 ) Discontinued operations of FMC Health and Nutrition, net of income taxes, attributable to FMC Stockholders $ 0.7 $ 13.2 ____________________ (1) Results for the three months ended March 31, 2018 include an adjustment to retained liabilities of the disposed FMC Health and Nutrition business. Discontinued operations include the results of FMC Lithium and adjustments to retained assets and liabilities as well as provisions, net of recoveries, for environmental liabilities and legal reserves and expenses related to previously discontinued operations and retained liabilities. The primary liabilities retained include environmental liabilities, other postretirement benefit liabilities, self-insurance, long-term obligations related to legal proceedings and historical restructuring activities. Our discontinued operations comprised the following: (in Millions) Three Months Ended March 31, 2019 2018 Adjustment for workers’ compensation, product liability, other postretirement benefits and other, net of income tax benefit (expense) of ($4.4) and ($1.0) for the three months ended March 31, 2019 and 2018, respectively (1) $ 22.3 $ 3.6 Provision for environmental liabilities, net of recoveries, net of income tax benefit (expense) of zero and $0.5 for the three months ended March 31, 2019 and 2018, respectively (2) 0.2 (3.2 ) Provision for legal reserves and expenses, net of recoveries, net of income tax benefit of $1.0 and $1.8 for the three months ended March 31, 2019 and 2018, respectively (3.6 ) (7.1 ) Discontinued operations of FMC Health and Nutrition, net of income tax benefit (expense) of ($0.2) and ($2.6) for the three months ended March 31, 2019 and 2018, respectively 0.7 13.2 Discontinued operations of FMC Lithium, net of income tax benefit (expense) of ($4.7) and ($8.2) for the three months ended March 31, 2019 and 2018, respectively (10.0 ) 32.9 Discontinued operations, net of income taxes $ 9.6 $ 39.4 ____________________ (1) During the three months ended March 31, 2019, we finalized the sale of the first of two parcels of land of our discontinued site in Newark, California and recorded a gain of approximately $21 million , net of tax. Results for the three months ended March 31, 2019 include these real estate proceeds. (2) See a roll forward of our environmental reserves as well as discussion on significant environmental issues that occurred during 2019 |
Environmental Obligations
Environmental Obligations | 3 Months Ended |
Mar. 31, 2019 | |
Environmental Remediation Obligations [Abstract] | |
Environmental Obligations | Environmental Obligations We have reserves for potential environmental obligations which management considers probable and which management can reasonably estimate. The table below is a roll forward of our total environmental reserves, continuing and discontinued: (in Millions) Gross Recoveries (3) Net Total environmental reserves at December 31, 2018 $ 529.4 $ (7.9 ) $ 521.5 Provision (Benefit) 2.5 — 2.5 (Spending) Recoveries (8.3 ) — (8.3 ) Foreign currency translation adjustments (0.7 ) — (0.7 ) Net change $ (6.5 ) $ — $ (6.5 ) Total environmental reserves at March 31, 2019 $ 522.9 $ (7.9 ) $ 515.0 Environmental reserves, current (1) $ 80.6 $ (1.1 ) $ 79.5 Environmental reserves, long-term (2) 442.3 (6.8 ) 435.5 Total environmental reserves at March 31, 2019 $ 522.9 $ (7.9 ) $ 515.0 ____________________ (1) These amounts are included within "Accrued and other liabilities" on the condensed consolidated balance sheets. (2) These amounts are included in "Environmental liabilities, continuing and discontinued" on the condensed consolidated balance sheets. (3) These recorded recoveries represent probable realization of claims against U.S. government agencies and are recorded as an offset to our environmental reserves in the condensed consolidated balance sheets. The estimated reasonably possible environmental loss contingencies, net of expected recoveries, exceed amounts accrued by approximately $190 million at March 31, 2019 . This reasonably possible estimate is based upon information available as of the date of the filing but the actual future losses may be higher given the uncertainties regarding the status of laws, regulations, enforcement policies, the impact of potentially responsible parties, technology and information related to individual sites. Potential environmental obligations that have not been reserved may be material to any one quarter's or year's results of operations in the future. However, we believe any such liability arising from such potential environmental obligations is not likely to have a material adverse effect on our liquidity or financial condition as it may be satisfied over many years. The table below provides a roll forward of our environmental recoveries representing probable realization of claims against insurance carriers and other third parties. These recoveries are recorded as "Other assets including long-term receivables, net" in the condensed consolidated balance sheets. (in Millions) 12/31/2018 Increase in recoveries Cash received 3/31/2019 Environmental recoveries $ 30.5 0.1 — $ 30.6 Our net environmental provisions relate to costs for the continued cleanup of both continuing and discontinued manufacturing operations from previous years. The net provisions are comprised as follows: Three Months Ended March 31, (in Millions) 2019 2018 Environmental provisions, net - recorded to liabilities (1) $ 2.5 $ 6.2 Environmental provisions, net - recorded to assets (2) (0.1 ) — Environmental provision, net $ 2.4 $ 6.2 Continuing operations (3) $ 2.6 $ 2.5 Discontinued operations (4) (0.2 ) 3.7 Environmental provision, net $ 2.4 $ 6.2 ____________________ (1) See above roll forward of our total environmental reserves as presented on the condensed consolidated balance sheets. (2) See above roll forward of our total environmental recoveries as presented on the condensed consolidated balance sheets. (3) Recorded as a component of “Restructuring and other charges (income)” on the condensed consolidated statements of income (loss). See Note 10. Environmental obligations for continuing operations primarily represent obligations at shut down or abandoned facilities within businesses that do not meet the criteria for presentation as discontinued operations. (4) Recorded as a component of “Discontinued operations, net of income taxes" on the condensed consolidated statements of income (loss). See Note 12. A more complete description of our environmental contingencies and the nature of our potential obligations are included in Notes 1 and 11 to our consolidated financial statements in our 2018 Form 10-K. See Note 11 to our consolidated financial statements in our 2018 Form 10-K for a description of significant updates to material environmental sites. There have been no significant updates since the information included in our 2018 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Earnings per common share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding during the period on a basic and diluted basis. Our potentially dilutive securities include potential common shares related to our stock options, restricted stock and restricted stock units. Diluted earnings per share (“Diluted EPS”) considers the impact of potentially dilutive securities except in periods in which there is a loss from continuing operations because the inclusion of the potential common shares would have an antidilutive effect. Diluted EPS excludes the impact of potential common shares related to our stock options in periods in which the option exercise price is greater than the average market price of our common stock for the period. For the three months ended March 31, 2019 and 2018 , there were 0.4 million and 0.2 million potential common shares excluded from Diluted EPS, respectively. Our non-vested restricted stock awards contain rights to receive non-forfeitable dividends, and thus, are participating securities requiring the two-class method of computing EPS. The two-class method determines EPS by dividing the sum of distributed earnings to common stockholders and undistributed earnings allocated to common stockholders by the weighted average number of shares of common stock outstanding for the period. In calculating the two-class method, undistributed earnings are allocated to both common shares and participating securities based on the weighted average number of shares outstanding during the period. Earnings applicable to common stock and common stock shares used in the calculation of basic and diluted earnings per share are as follows: (in Millions, Except Share and Per Share Data) Three Months Ended March 31, 2019 2018 Earnings (loss) attributable to FMC stockholders: Continuing operations, net of income taxes $ 206.1 $ 227.8 Discontinued operations, net of income taxes 9.6 39.4 Net income (loss) attributable to FMC stockholders $ 215.7 $ 267.2 Less: Distributed and undistributed earnings allocable to restricted award holders (0.7 ) (1.0 ) Net income (loss) allocable to common stockholders $ 215.0 $ 266.2 Basic earnings (loss) per common share attributable to FMC stockholders: Continuing operations $ 1.56 $ 1.69 Discontinued operations 0.07 0.29 Net income (loss) attributable to FMC stockholders $ 1.63 $ 1.98 Diluted earnings (loss) per common share attributable to FMC stockholders: Continuing operations $ 1.55 $ 1.67 Discontinued operations 0.07 0.29 Net income (loss) attributable to FMC stockholders $ 1.62 $ 1.96 Shares (in thousands): Weighted average number of shares of common stock outstanding - Basic 131,887 134,589 Weighted average additional shares assuming conversion of potential common shares 1,327 1,568 Shares – diluted basis 133,214 136,157 |
Equity
Equity | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Equity | Equity Accumulated other comprehensive income (loss) Summarized below is the roll forward of accumulated other comprehensive income (loss), net of tax. (in Millions) Foreign currency adjustments Derivative Instruments (1) Pension and other postretirement benefits (2) Total Accumulated other comprehensive income (loss), net of tax at December 31, 2018 $ (101.5 ) $ 11.2 $ (218.6 ) $ (308.9 ) 2019 Activity Other comprehensive income (loss) before reclassifications (2.1 ) 0.9 — (1.2 ) Amounts reclassified from accumulated other comprehensive income (loss) — (3.6 ) 3.4 (0.2 ) Net current period other comprehensive income (loss) $ (2.1 ) $ (2.7 ) $ 3.4 $ (1.4 ) Adoption of accounting standard (Note 2) — 1.0 (54.1 ) (53.1 ) Distribution of FMC Lithium (3) 39.0 — — 39.0 Accumulated other comprehensive income (loss), net of tax at March 31, 2019 $ (64.6 ) $ 9.5 $ (269.3 ) $ (324.4 ) (in Millions) Foreign currency adjustments Derivative Instruments (1) Pension and other postretirement benefits (2) Total Accumulated other comprehensive income (loss), net of tax at December 31, 2017 $ (6.2 ) $ 5.2 $ (239.3 ) $ (240.3 ) 2018 Activity Other comprehensive income (loss) before reclassifications 49.3 1.5 0.6 51.4 Amounts reclassified from accumulated other comprehensive income (loss) — 0.4 3.0 3.4 Accumulated other comprehensive income (loss), net of tax at March 31, 2018 $ 43.1 $ 7.1 $ (235.7 ) $ (185.5 ) ____________________ (1) See Note 18 for more information. (2) See Note 16 for more information. (3) Represents the effects of the distribution of FMC Lithium. Refer to Note 1 for further information. Reclassifications of accumulated other comprehensive income (loss) The table below provides details about the reclassifications from accumulated other comprehensive income (loss) and the affected line items in the condensed consolidated statements of income (loss) for each of the periods presented. Details about Accumulated Other Comprehensive Income Components Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (1) Affected Line Item in the Condensed Consolidated Statements of Income (Loss) Three Months Ended March 31, (in Millions) 2019 2018 Derivative instruments Foreign currency contracts $ 3.3 $ (1.9 ) Costs of sales and services Foreign currency contracts 1.3 1.4 Selling, general and administrative expenses Total before tax $ 4.6 $ (0.5 ) (1.0 ) 0.1 Provision for income taxes Amount included in net income (loss) $ 3.6 $ (0.4 ) Pension and other postretirement benefits (2) Amortization of prior service costs $ (0.1 ) $ (0.1 ) Selling, general and administrative expenses Amortization of unrecognized net actuarial and other gains (losses) (4.2 ) (3.6 ) Selling, general and administrative expenses Recognized loss due to curtailment and settlement — (0.9 ) Selling, general and administrative expenses Total before tax $ (4.3 ) $ (4.6 ) 0.9 1.6 Provision for income taxes Amount included in net income (loss) $ (3.4 ) $ (3.0 ) Total reclassifications for the period $ 0.2 $ (3.4 ) Amount included in net income ____________________ (1) Amounts in parentheses indicate charges to the condensed consolidated statements of income (loss). (2) Pension and other postretirement benefits amounts include the impact from both continuing and discontinued operations. For detail on the continuing operations components of pension and other postretirement benefits, see Note 16. Dividends and Share Repurchases For the three months ended March 31, 2019 and 2018 , we paid dividends of $53.2 million and $22.3 million , respectively. On April 18, 2019 , we paid dividends totaling $52.8 million to our shareholders of record as of March 29, 2019 . This amount is included in “Accrued and other liabilities” on the condensed consolidated balance sheet as of March 31, 2019 . During the three months ended March 31, 2019 , 1.3 million shares were repurchased under the publicly announced repurchase program. At March 31, 2019 , approximately $900 million |
Pensions and Other Postretireme
Pensions and Other Postretirement Benefits | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Pensions and Other Postretirement Benefits | Pensions and Other Postretirement Benefits The following table summarizes the components of net annual benefit cost (income): (in Millions) Three Months Ended March 31, Pensions Other Benefits 2019 2018 2019 2018 Service cost $ 1.1 $ 1.7 $ — $ — Interest cost 12.2 11.4 0.2 0.1 Expected return on plan assets (13.4 ) (15.8 ) — — Amortization of prior service cost (credit) 0.1 0.1 — — Recognized net actuarial and other (gain) loss 4.6 4.1 (0.2 ) (0.2 ) Recognized loss due to settlement (1) — 0.9 — — Net periodic benefit cost (income) $ 4.6 $ 2.4 $ — $ (0.1 ) ____________________ (1) Settlement charge relates to the U.S. nonqualified defined benefit pension plan. We did not make any voluntary cash contributions to our U.S. defined benefit pension plan in the three months ended March 31, 2019. We expect to make approximately $7 million in voluntary cash contributions to our U.S. defined benefit pension plan during 2019 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We determine our interim tax provision using an Estimated Annual Effective Tax Rate methodology (“EAETR”) in accordance with U.S. GAAP. The EAETR is applied to the year-to-date ordinary income, exclusive of discrete items. The tax effects of discrete items are then included to arrive at the total reported interim tax provision. The determination of the EAETR is based upon a number of estimates, including the estimated annual pretax ordinary income in each tax jurisdiction in which we operate. As our projections of ordinary income change throughout the year, the EAETR will change period-to-period. The tax effects of discrete items are recognized in the tax provision in the period they occur in accordance with U.S. GAAP. Depending on various factors, such as the item’s significance in relation to total income and the rate of tax applicable in the jurisdiction to which it relates, discrete items in any quarter can materially impact the reported effective tax rate. As a global enterprise, our tax expense can be impacted by changes in tax rates or laws, the finalization of tax audits and reviews, as well as other factors. As a result, there can be significant volatility in interim tax provisions. The below chart provides a reconciliation between our reported effective tax rate and the EAETR of our continuing operations. Three Months Ended March 31, 2019 2018 (in Millions) Before Tax Tax Effective Tax Rate % Before Tax Tax Effective Tax Rate % Continuing operations $ 243.9 $ 36.3 14.9 % $ 290.7 $ 60.5 20.8 % Discrete items: Currency remeasurement (1) $ 1.9 $ 0.9 $ (1.7 ) $ 0.6 Other discrete items (2) 46.0 3.3 (53.5 ) (18.1 ) Tax only discrete items (3) — 2.4 — (8.3 ) Total discrete items $ 47.9 $ 6.6 $ (55.2 ) $ (25.8 ) Continuing operations, before discrete items $ 291.8 $ 42.9 $ 235.5 $ 34.7 Estimated Annualized Effective Tax Rate (EAETR) 14.7 % 14.7 % ___________________ (1) Represents transaction gains or losses for currency remeasurement offset by associated hedge gains or losses, which are accounted for discretely in accordance with U.S. GAAP. Certain transaction gains or losses for currency remeasurement are not taxable, while offsetting hedge gains or losses are taxable. (2) U.S. GAAP generally requires subsidiaries for which a full valuation allowance has been provided to be excluded from the EAETR. During the three months ended March 31, 2019, other discrete items were materially comprised of the discrete accounting for excluded pretax losses of subsidiaries for which a full valuation allowance has been provided. For the three months ended March 31, 2018, other discrete items represent the gain attributable to the sale of a portion of FMC’s European herbicide portfolio to Nufarm Limited partially offset by the discrete accounting for excluded pretax losses of subsidiaries for which a full valuation allowance has been provided. (3) |
Financial Instruments, Risk Man
Financial Instruments, Risk Management and Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments, Risk Management and Fair Value Measurements | Financial Instruments, Risk Management and Fair Value Measurements Our financial instruments include cash and cash equivalents, trade receivables, other current assets, certain receivables classified as other long-term assets, accounts payable, and amounts included in investments and accruals meeting the definition of financial instruments. The carrying value of these financial instruments approximates their fair value. Our other financial instruments include the following: Financial Instrument Valuation Method Foreign exchange forward contracts Estimated amounts that would be received or paid to terminate the contracts at the reporting date based on current market prices for applicable currencies. Commodity forward and option contracts Estimated amounts that would be received or paid to terminate the contracts at the reporting date based on quoted market prices for applicable commodities. Debt Our estimates and information obtained from independent third parties using market data, such as bid/ask spreads for the last business day of the reporting period. The estimated fair value of the financial instruments in the above table have been determined using standard pricing models which take into account the present value of expected future cash flows discounted to the balance sheet date. These standard pricing models utilize inputs derived from or corroborated by observable market data such as interest rate yield curves and currency and commodity spot and forward rates. In addition, we test a subset of our valuations against valuations received from the transaction's counterparty to validate the accuracy of our standard pricing models. Accordingly, the estimates presented may not be indicative of the amounts that we would realize in a market exchange at settlement date and do not represent potential gains or losses on these agreements. The estimated fair values of foreign exchange forward contracts and commodity forward and option contracts are included in the tables within this Note. The estimated fair value of debt is $3,175.8 million and $2,715.2 million and the carrying amount is $3,138.8 million and $2,692.7 million as of March 31, 2019 and December 31, 2018 , respectively. We enter into various financial instruments with off-balance-sheet risk as part of the normal course of business. These off-balance-sheet instruments include financial guarantees and contractual commitments to extend financial guarantees under letters of credit, and other assistance to customers. See Note 19 for more information. Decisions to extend financial guarantees to customers and the amount of collateral required under these guarantees are based on our evaluation of creditworthiness on a case-by-case basis. Use of Derivative Financial Instruments to Manage Risk We mitigate certain financial exposures, including currency risk, commodity purchase exposures and interest rate risk, through a program of risk management that includes the use of derivative financial instruments. We enter into derivative contracts, including forward contracts and purchased options, to reduce the effects of fluctuating currency exchange rates, interest rates, and commodity prices. A detailed description of these risks including a discussion on the concentration of credit risk is provided in Note 18 to our consolidated financial statements on our 2018 Form 10-K. We formally document all relationships between hedging instruments and hedged items, as well as the risk management objective and strategy for undertaking various hedge transactions. This process includes relating derivatives that are designated as fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. We also assess, both at the inception of the hedge and on an ongoing basis, whether each derivative is highly effective in offsetting changes in fair values or cash flows of the hedged item. If we determine that a derivative is not highly effective as a hedge, or if a derivative ceases to be a highly effective hedge, we discontinue hedge accounting with respect to that derivative prospectively. Accounting for Derivative Instruments and Hedging Activities Cash Flow Hedges We recognize all derivatives on the balance sheet at fair value. On the date the derivative instrument is entered into, we generally designate the derivative as a hedge of the variability of cash flows to be received or paid related to a forecasted transaction (cash flow hedge). We record in AOCI changes in the fair value of derivatives that are designated as and meet all the required criteria for a cash flow hedge. We then reclassify these amounts into earnings as the underlying hedged item affects earnings. In contrast, we immediately record in earnings changes in the fair value of derivatives that are not designated as cash flow hedges. As of March 31, 2019 , we had open foreign currency forward contracts in AOCI in a net after tax gain position of $13.8 million designated as cash flow hedges of underlying forecasted sales and purchases. Current open contracts hedge forecasted transactions until December 31, 2020 . At March 31, 2019 , we had open forward contracts designated as cash flow hedges with various expiration dates to buy, sell or exchange foreign currencies with a U.S. dollar equivalent of approximately $974 million . As of March 31, 2019 , we had open interest rate contracts in AOCI in a net after tax loss position of $6.2 million designated as cash flow hedges of underlying floating rate interest payments on a portion of our variable-rate debt and the anticipated fixed rate coupon of debt forecasted to be issued within a designated window. At March 31, 2019 , we had interest rate swap contracts outstanding with a total aggregate notional value of $500.0 million . As of March 31, 2019 , we had no open commodity contracts in AOCI designated as cash flow hedges of underlying forecasted purchases. At March 31, 2019 , we had zero mmBTUs (millions of British Thermal Units) in aggregate notional volume of outstanding natural gas commodity forward contracts to hedge forecasted purchases. Approximately all of the $7.6 million net gains after-tax, representing open foreign currency exchange contracts and interest rate contracts, will be realized in earnings during the twelve months ending March 31, 2020 if spot rates in the future are consistent with forward rates as of March 31, 2019 . The actual effect on earnings will be dependent on the actual spot rates when the forecasted transactions occur. Derivatives Not Designated As Hedging Instruments We hold certain forward contracts that have not been designated as cash flow hedging instruments for accounting purposes. Contracts used to hedge the exposure to foreign currency fluctuations associated with certain monetary assets and liabilities are not designated as cash flow hedging instruments, and changes in the fair value of these items are recorded in earnings. We had open forward contracts not designated as cash flow hedging instruments for accounting purposes with various expiration dates to buy, sell or exchange foreign currencies with a U.S. dollar equivalent of approximately $1,153 million at March 31, 2019 . Fair Value of Derivative Instruments The following tables provide the gross fair value and net balance sheet presentation of our derivative instruments. March 31, 2019 Gross Amount of Derivatives (in Millions) Designated as Cash Flow Hedges Not Designated as Hedging Instruments Total Gross Amounts Gross Amounts Offset in the Condensed Consolidated Balance Sheet (3) Net Amounts Foreign exchange contracts $ 19.9 $ 4.2 $ 24.1 $ (6.8 ) $ 17.3 Interest rate contracts 0.1 — 0.1 — 0.1 Total derivative assets (1) $ 20.0 $ 4.2 $ 24.2 $ (6.8 ) $ 17.4 Foreign exchange contracts $ (6.8 ) $ (0.1 ) $ (6.9 ) $ 6.8 $ (0.1 ) Interest rate contracts (7.9 ) — (7.9 ) — (7.9 ) Total derivative liabilities (2) $ (14.7 ) $ (0.1 ) $ (14.8 ) $ 6.8 $ (8.0 ) Net derivative assets (liabilities) $ 5.3 $ 4.1 $ 9.4 $ — $ 9.4 December 31, 2018 Gross Amount of Derivatives (in Millions) Designated as Cash Flow Hedges Not Designated as Hedging Instruments Total Gross Amounts Gross Amounts Offset in the Condensed Consolidated Balance Sheet (3) Net Amounts Foreign exchange contracts $ 18.3 $ 1.5 $ 19.8 $ (8.1 ) $ 11.7 Total derivative assets (1) $ 18.3 $ 1.5 $ 19.8 $ (8.1 ) $ 11.7 Foreign exchange contracts $ (8.0 ) $ (0.2 ) $ (8.2 ) $ 8.1 $ (0.1 ) Interest rate contracts (0.2 ) — (0.2 ) — (0.2 ) Total derivative liabilities (2) $ (8.2 ) $ (0.2 ) $ (8.4 ) $ 8.1 $ (0.3 ) Net derivative assets (liabilities) $ 10.1 $ 1.3 $ 11.4 $ — $ 11.4 ____________________ (1) Net balance is included in “Prepaid and other current assets” in the condensed consolidated balance sheets. (2) Net balance is included in “Accrued and other liabilities” in the condensed consolidated balance sheets. (3) Represents net derivatives positions subject to master netting arrangements. The tables below summarize the gains or losses related to our cash flow hedges and derivatives not designated as hedging instruments. Derivatives in Cash Flow Hedging Relationships Three Months Ended March 31, Contracts Foreign Exchange Other Total (in Millions) 2019 2018 2019 2018 2019 2018 Unrealized hedging gains (losses) and other, net of tax $ 6.9 $ 1.5 $ (6.0 ) $ — $ 0.9 $ 1.5 Reclassification of deferred hedging (gains) losses, net of tax (1) (3.6 ) 0.2 — 0.2 (3.6 ) 0.4 Total derivative instrument impact on comprehensive income, net of tax $ 3.3 $ 1.7 $ (6.0 ) $ 0.2 $ (2.7 ) $ 1.9 ___________________ (1) See Note 15 for classification of amounts within the condensed consolidated statements of income (loss). Derivatives Not Designated as Hedging Instruments Amount of Pre-tax Gain or (Loss) Recognized in Income on Derivatives (1) Three Months Ended March 31, (in Millions) Location of Gain or (Loss) Recognized in Income on Derivatives 2019 2018 Foreign exchange contracts Cost of sales and services $ (2.9 ) $ (1.1 ) Total $ (2.9 ) $ (1.1 ) ___________________ (1) Amounts represent the gain or loss on the derivative instrument offset by the gain or loss on the hedged item. Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Market participants are defined as buyers or sellers in the principle or most advantageous market for the asset or liability that are independent of the reporting entity, knowledgeable and able and willing to transact for the asset or liability. Fair Value Hierarchy We have categorized our assets and liabilities that are recorded at fair value, based on the priority of the inputs to the valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the assets and liabilities fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. Recurring Fair Value Measurements The following tables present our fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis in the condensed consolidated balance sheets. During the periods presented there were no transfers between fair value hierarchy levels. (in Millions) March 31, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Derivatives – Foreign exchange (1) $ 17.3 $ — $ 17.3 $ — Derivatives – Interest rate (1) 0.1 — 0.1 — Other (2) 20.9 20.9 — — Total assets $ 38.3 $ 20.9 $ 17.4 $ — Liabilities Derivatives – Foreign exchange (1) $ 0.1 $ — $ 0.1 $ — Derivatives – Interest rate (1) 7.9 — 7.9 — Other (3) 31.2 28.7 2.5 — Total liabilities $ 39.2 $ 28.7 $ 10.5 $ — (in Millions) December 31, 2018 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets Derivatives – Foreign exchange (1) $ 11.7 $ — $ 11.7 $ — Other (2) 17.7 17.7 — — Total assets $ 29.4 $ 17.7 $ 11.7 $ — Liabilities Derivatives – Foreign exchange (1) $ 0.1 $ — $ 0.1 $ — Derivatives – Interest rate (1) 0.2 — 0.2 — Other (3) 27.4 24.3 3.1 — Total liabilities $ 27.7 $ 24.3 $ 3.4 $ — ____________________ (1) See the Fair Value of Derivative Instruments table within this Note for classification on the condensed consolidated balance sheets. (2) Consists of a deferred compensation arrangement, through which we hold various investment securities, recognized on our balance sheets. Both the asset and liability are recorded at fair value. Asset amounts are included in “Other assets including long-term receivables, net” in the condensed consolidated balance sheets. (3) Primarily consists of a deferred compensation arrangement recognized on our balance sheets. Both the asset and liability are recorded at fair value. Liability amounts are included in “Other long-term liabilities” in the condensed consolidated balance sheets. Nonrecurring Fair Value Measurements The following table presents our fair value hierarchy for those assets and liabilities measured at fair value on a non-recurring basis in the condensed consolidated balance sheets during the year ended December 31, 2018 . There were no non-recurring fair value measurements in the condensed consolidated balance sheets during the three months ended March 31, 2019 . (in Millions) December 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Gains (Losses) (Year Ended December 31, 2018) Assets Impairment of intangibles (1) $ 3.1 $ — $ — $ 3.1 $ (1.8 ) Total assets $ 3.1 $ — $ — $ 3.1 $ (1.8 ) ____________________ (1) We recorded an impairment charge to write down the carrying value of the generic brand portfolio of approximately $2 million |
Guarantees, Commitments, and Co
Guarantees, Commitments, and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantees, Commitments, and Contingencies | Guarantees, Commitments, and Contingencies We continue to monitor the conditions that are subject to guarantees and indemnifications to identify whether a liability must be recognized in our financial statements. Guarantees and Other Commitments The following table provides the estimated undiscounted amount of potential future payments for each major group of guarantees at March 31, 2019 . These guarantees arise during the ordinary course of business from relationships with customers and nonconsolidated affiliates. Non-performance by the guaranteed party triggers the obligation requiring us to make payments to the beneficiary of the guarantee. Based on our experience these types of guarantees have not had a material effect on our consolidated financial position or on our liquidity. Our expectation is that future payment or performance related to the non-performance of others is considered unlikely. (in Millions) Guarantees: Guarantees of vendor financing - short-term (1) $ 78.4 Other debt guarantees (2) 4.2 Total $ 82.6 ____________________ (1) Represents guarantees to financial institutions on behalf of certain customers for their seasonal borrowing. This short-term amount is recorded within “Guarantees of vendor financing” on the condensed consolidated balance sheets. (2) These guarantees represent support provided to third-party banks for credit extended to various customers and nonconsolidated affiliates. The liability for the guarantees is recorded at an amount that approximates fair value (i.e. representing the stand-ready obligation) based on our historical collection experience and a current assessment of credit exposure. We believe the fair value of these guarantees is immaterial. The majority of these guarantees have an expiration date of less than one year. Excluded from the chart above are parent-company guarantees we provide to lending institutions that extend credit to our foreign subsidiaries. Since these guarantees are provided for consolidated subsidiaries, the consolidated financial position is not affected by the issuance of these guarantees. Also excluded from the chart, in connection with our property and asset sales and divestitures, we have agreed to indemnify the buyer for certain liabilities, including environmental contamination and taxes that occurred prior to the date of sale or provided guarantees to third parties relating to certain contracts assumed by the buyer. Our indemnification or guarantee obligations with respect to certain liabilities may be indefinite as to duration and may or may not be subject to a deductible, minimum claim amount or cap. As such, it is not possible for us to predict the likelihood that a claim will be made or to make a reasonable estimate of the maximum potential loss or range of loss. If triggered, we may be able to recover some of the indemnity payments from third parties. Therefore, we have not recorded any specific liabilities for these guarantees. For certain obligations related to our divestitures for which we can make a reasonable estimate of the maximum potential loss or range of loss and is probable, a liability in those instances has been recorded. Contingencies A detailed discussion related to our outstanding contingencies, other than as discussed below, can be found in Note 18 to our consolidated financial statements included within our 2018 |
Financial Information and Acc_2
Financial Information and Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of accounting | In our opinion the condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) applicable to interim period financial statements and reflect all adjustments necessary for a fair statement of results of operations for the three months ended March 31, 2019 and 2018 , cash flows for the three months ended March 31, 2019 and 2018 , changes in equity for the three months ended March 31, 2019 and 2018 , and our financial positions as of March 31, 2019 and December 31, 2018 |
New accounting guidance and regulatory items and recently adopted accounting guidance | New accounting guidance and regulatory items In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-15, Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The amendments in this ASU align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The new standard is effective for fiscal years beginning after December 15, 2019 (i.e. a January 1, 2020 effective date). We are evaluating the effect the guidance will have on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-14, Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans . The amendments in this ASU modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The new standard is effective for fiscal years ending after December 15, 2020. We are evaluating the effect the guidance will have on our consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . This ASU changes the subsequent measurement of goodwill impairment by eliminating Step 2 from the impairment test. Under the new guidance, an entity will measure impairment using the difference between the carrying amount and the fair value of the reporting unit. The new standard is effective for fiscal years beginning after December 15, 2019 (i.e. a January 1, 2020 effective date), with early adoption permitted for goodwill impairment tests with measurement dates after January 1, 2017. We believe the adoption will not have a material impact on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses. The update is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The new standard is effective for fiscal years beginning after December 15, 2019 (i.e. a January 1, 2020 effective date), with early adoption permitted for fiscal years beginning after December 15, 2018. We are evaluating the effect the guidance will have on our consolidated financial statements. Recently adopted accounting guidance In February 2018, the FASB issued ASU No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . This new standard permits a company to reclassify the income tax effects of the change in the U.S federal corporate income tax rate on the gross deferred tax amounts and related valuation allowances as well as other income tax effects related to the application of the Tax Cuts and Jobs Act (the "Act") within accumulated other comprehensive income ("AOCI") to retained earnings. The new standard also requires certain disclosures about stranded tax effects. The new standard is effective for fiscal years beginning after December 15, 2018 (i.e. a January 1, 2019 effective date), and interim periods within those fiscal years, with early adoption permitted. We adopted this standard prospectively as of January 1, 2019 and reclassified $53.1 million of the stranded income tax effects from accumulated other comprehensive income (loss) to retained earnings. The reclassification was related to the change in the U.S. federal corporate tax rate and the effect of the Act on our pension plans and derivative instruments. This reclassification is reflected within the condensed consolidated statement of changes in equity for the current period. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . This ASU amends and simplifies existing hedge accounting guidance and allows for more hedging strategies to be eligible for hedge accounting. In addition, the ASU amends disclosure requirements and how hedge effectiveness is assessed. The presentation and disclosure guidance is required to be adopted prospectively. The new standard is effective for fiscal years beginning after December 15, 2018 (i.e. a January 1, 2019 effective date), with early adoption permitted in any interim period after issuance of this ASU. We adopted this standard as of January 1, 2019. There was no material impact to our consolidated financial statements upon adoption. In February 2016, the FASB issued its new lease accounting guidance in ASU No. 2016-02, Leases (Topic 842) ("ASC 842"). Under the new guidance, lessees will be required to recognize for all leases (with the exception of short-term leases) a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis and a right-of-use ("ROU") asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years (i.e. a January 1, 2019 effective date). In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases to make technical corrections and clarify the application of the new lease standard. In adopting this standard, we performed a detailed review of contracts of our business and assessed the terms under ASC 842. Additionally, we assessed potential impacts on our internal controls and processes related to both the implementation and ongoing compliance of the new guidance. We have adopted this standard as of January 1, 2019 utilizing a modified retrospective approach and have elected the transition practical expedient package. Under this transition practical expedient package, ASC 842 was only applied to contracts that existed as of, or were entered into on or after, January 1, 2019, and a cumulative effect adjustment was made as of January 1, 2019. All comparative periods prior to January 1, 2019 will retain the financial reporting and disclosure requirements of ASC 840. The adoption of ASC 842 had a material impact on our consolidated balance sheet but did not have a material impact on the consolidated statement of income, consolidated statement of comprehensive income, consolidated statement of cash flows, and consolidated statement of changes in equity. As a result of adoption, we recorded additional ROU lease assets and lease liabilities of $185.3 million and $215.9 million , respectively. ROU lease assets includes a reclassification of $30.6 million of prepaid rent, accrued rent, and lease incentives previously recorded under ASC 840. Additionally, we recorded a retained earnings impact of $2.4 million as of January 1, 2019. Refer to Note 4 for further information. The expedient package allowed us not to reassess whether existing contracts contain a lease under the new definition of a lease, the lease classification of existing leases, and initial direct cost for existing leases including whether such costs would qualify for capitalization under the standard. Additionally, we elected the practical expedient to not separate non-lease components from lease components. In addition to these practical expedients, we elected the following exemption permissible under ASC 842: the exclusion of leases with terms 12 months or less that do not have a purchase option or extension that is reasonably certain to exercise. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | The following table provides information about disaggregated revenue by major geographical region: Three Months Ended March 31, (in Millions) 2019 2018 North America $ 318.3 $ 298.2 Latin America 206.5 158.9 Europe, Middle East & Africa (EMEA) 412.0 398.8 Asia Pacific 255.3 252.0 Total Revenue $ 1,192.1 $ 1,107.9 The following table provides information about disaggregated revenue by major product category: Three Months Ended March 31, (in Millions) 2019 2018 Insecticides $ 703.4 $ 589.3 Herbicides 361.6 385.7 Fungicides 70.5 79.0 Other 56.6 53.9 Total Revenue $ 1,192.1 $ 1,107.9 |
Receivables and contract liabilities | The following table presents the opening and closing balances of our receivables, net of allowances and contract liabilities from contracts with customers. (in Millions) Balance as of December 31, 2018 Balance as of March 31, 2019 Increase (Decrease) Receivables from contracts with customers, net of allowances $ 2,228.3 $ 2,619.5 $ 391.2 Contract liabilities: Advance payments from customers 458.4 283.3 (175.1 ) |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Asset and lease liability | The ROU asset and lease liability balances as of March 31, 2019 were as follows: (in Millions) Classification Balance at March 31, 2019 Assets Operating lease ROU assets Other assets including long-term receivables, net $ 175.5 Liabilities Operating lease current liabilities Accrued and other liabilities $ 31.1 Operating lease noncurrent liabilities Other long-term liabilities 175.5 |
Components of lease expense, lease term and discount rate | The components of lease expense for the three months ended March 31, 2019 were as follows: (in Millions) Lease Cost Classification Three Months Ended March 31, 2019 Operating lease cost Cost of sales and services / Selling, general and administrative expenses $ 10.0 Variable lease cost Cost of sales and services / Selling, general and administrative expenses 1.3 Total lease cost $ 11.3 (in Millions) Three Months Ended March 31, 2019 Other Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (10.3 ) Supplemental non-cash information on lease liabilities arising from obtaining right-of-use assets: Right-of-use assets obtained in exchange for new operating lease liabilities $ 0.3 |
Lease terms | March 31, 2019 Operating Lease Term and Discount Rate Weighted-average remaining lease term (years) 10.5 Weighted-average discount rate 4.30 % |
Future minimum lease payments | The following table represents our future minimum operating lease payments as of, and subsequent to, March 31, 2019 under ASC 842: (in Millions) Operating Leases Total Maturity of Lease Liabilities 2019 (excluding the three months ending March 31, 2019) $ 29.2 2020 34.7 2021 24.1 2022 20.7 2023 16.7 Thereafter 136.5 Total undiscounted lease payments $ 261.9 Less: Present value adjustment (55.3 ) Present value of lease liabilities $ 206.6 |
Future minimum operating lease payments under ASC 840 | Our future minimum lease payments as of December 31, 2018 under ASC 840 were as follows: Future Minimum Lease Payments (in Millions) 2019 2020 2021 2022 2023 Thereafter Operating Leases $ 36.7 $ 31.7 $ 21.0 $ 17.5 $ 13.5 $ 107.5 Capital Lease 2.9 2.9 3.1 3.1 3.1 4.3 |
Future minimum capital lease payments under ASC 840 | Our future minimum lease payments as of December 31, 2018 under ASC 840 were as follows: Future Minimum Lease Payments (in Millions) 2019 2020 2021 2022 2023 Thereafter Operating Leases $ 36.7 $ 31.7 $ 21.0 $ 17.5 $ 13.5 $ 107.5 Capital Lease 2.9 2.9 3.1 3.1 3.1 4.3 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of purchase price allocation | The following table illustrates each component of the consideration paid as part of the DuPont Crop Protection Business Acquisition: (in Millions) Amount Cash purchase price, net (1) $ 1,225.6 Cash proceeds from working capital and other adjustments (21.5 ) Fair value of FMC Health and Nutrition sold to DuPont 1,968.6 Total purchase consideration $ 3,172.7 ____________________ (1) |
Acquisition costs | The following table summarizes the costs incurred associated with these activities. Three Months Ended March 31, (in Millions) 2019 2018 DuPont Crop Protection Business Acquisition Legal and professional fees (1) $ 16.5 $ 19.6 Inventory fair value amortization (2) — 29.9 Total Transaction-related charges $ 16.5 $ 49.5 Restructuring charges DuPont Crop restructuring (3) $ 3.9 $ 1.0 Total DuPont Crop restructuring charges $ 3.9 $ 1.0 ____________________ (1) Represents transaction costs, costs for transitional employees, other acquired employees related costs, and transactional-related costs such as legal and professional third-party fees. These charges are recorded as a component of “Selling, general and administrative expense" on the condensed consolidated statements of income (loss). (2) These charges are recorded as a component of "Costs of sales and services" on the condensed consolidated statements of income (loss). (3) See Note 10 for more information. These charges are recorded as a component of “Restructuring and other charges (income)” on the condensed consolidated statements of income (loss). |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill by business segment | The changes in the carrying amount of goodwill are presented in the table below: (in Millions) Total Balance, December 31, 2018 $ 1,468.1 Foreign currency and other adjustments 2.1 Balance, March 31, 2019 $ 1,470.2 |
Schedule of finite-lived intangible assets | Our intangible assets, other than goodwill, consist of the following: March 31, 2019 December 31, 2018 (in Millions) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Intangible assets subject to amortization (finite-lived) Customer relationships $ 1,142.4 $ (142.4 ) $ 1,000.0 $ 1,146.2 $ (128.7 ) $ 1,017.5 Patents 1.7 (0.8 ) 0.9 1.7 (0.8 ) 0.9 Brands (1) (2) 16.8 (6.2 ) 10.6 17.0 (5.9 ) 11.1 Purchased and licensed technologies 61.0 (32.8 ) 28.2 61.3 (32.1 ) 29.2 Other intangibles 1.9 (1.8 ) 0.1 1.9 (1.8 ) 0.1 $ 1,223.8 $ (184.0 ) $ 1,039.8 $ 1,228.1 $ (169.3 ) $ 1,058.8 Intangible assets not subject to amortization (indefinite-lived) Crop Protection Brands (3) $ 1,259.1 $ 1,259.1 $ 1,259.1 $ 1,259.1 Brands (1) (2) 380.8 380.8 384.8 384.8 In-process research & development 0.7 0.7 0.7 0.7 $ 1,640.6 $ 1,640.6 $ 1,644.6 $ 1,644.6 Total intangible assets $ 2,864.4 $ (184.0 ) $ 2,680.4 $ 2,872.7 $ (169.3 ) $ 2,703.4 ____________________ (1) Represents trademarks, trade names and know-how. (2) The majority of the Brands relate to our proprietary brand portfolios acquired from the Cheminova acquisition. (3) Represents the proprietary brand portfolios, consisting of trademarks, trade names and know-how, acquired from the DuPont Crop Protection Business Acquisition. |
Schedule of indefinite-lived intangible assets | Our intangible assets, other than goodwill, consist of the following: March 31, 2019 December 31, 2018 (in Millions) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Intangible assets subject to amortization (finite-lived) Customer relationships $ 1,142.4 $ (142.4 ) $ 1,000.0 $ 1,146.2 $ (128.7 ) $ 1,017.5 Patents 1.7 (0.8 ) 0.9 1.7 (0.8 ) 0.9 Brands (1) (2) 16.8 (6.2 ) 10.6 17.0 (5.9 ) 11.1 Purchased and licensed technologies 61.0 (32.8 ) 28.2 61.3 (32.1 ) 29.2 Other intangibles 1.9 (1.8 ) 0.1 1.9 (1.8 ) 0.1 $ 1,223.8 $ (184.0 ) $ 1,039.8 $ 1,228.1 $ (169.3 ) $ 1,058.8 Intangible assets not subject to amortization (indefinite-lived) Crop Protection Brands (3) $ 1,259.1 $ 1,259.1 $ 1,259.1 $ 1,259.1 Brands (1) (2) 380.8 380.8 384.8 384.8 In-process research & development 0.7 0.7 0.7 0.7 $ 1,640.6 $ 1,640.6 $ 1,644.6 $ 1,644.6 Total intangible assets $ 2,864.4 $ (184.0 ) $ 2,680.4 $ 2,872.7 $ (169.3 ) $ 2,703.4 ____________________ (1) Represents trademarks, trade names and know-how. (2) The majority of the Brands relate to our proprietary brand portfolios acquired from the Cheminova acquisition. (3) |
Schedule of finite-lived intangible assets amortization expense | Three Months Ended March 31, (in Millions) 2019 2018 Amortization expense $ 15.6 $ 13.5 |
Receivables (Tables)
Receivables (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Allowance for doubtful trade receivables | The following table displays a roll forward of the allowance for doubtful trade receivables. (in Millions) Balance, December 31, 2017 $ 38.6 Additions - charged to expense (1) 58.0 Transfer from (to) allowance for credit losses (see below) (17.3 ) Net recoveries, write-offs and other (1) (56.9 ) Balance, December 31, 2018 $ 22.4 Additions - charged to expense 3.0 Net recoveries, write-offs and other 1.9 Balance, March 31, 2019 $ 27.3 ____________________ (1) Includes the charge and write-off of approximately $42 million |
Schedule of allowance for credit losses rollforward | The following table displays a roll forward of the allowance for credit losses related to long-term customer receivables. ( in Millions ) Balance, December 31, 2017 $ 47.1 Additions - charged to expense 13.4 Transfer from (to) allowance for doubtful accounts (see above) 17.3 Foreign currency adjustments (4.1 ) Net recoveries, write-offs and other (13.2 ) Balance, December 31, 2018 $ 60.5 Additions - charged to expense 7.4 Foreign currency adjustments 0.3 Balance, March 31, 2019 $ 68.2 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories consisted of the following: (in Millions) March 31, 2019 December 31, 2018 Finished goods $ 357.7 $ 430.4 Work in process 584.7 518.8 Raw materials, supplies and other 327.8 206.9 First-in, first-out inventory $ 1,270.2 $ 1,156.1 Less: Excess of first-in, first-out cost over last-in, first-out cost (133.1 ) (130.6 ) Net inventories $ 1,137.1 $ 1,025.5 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | Property, plant and equipment consisted of the following: (in Millions) March 31, 2019 December 31, 2018 Property, plant and equipment $ 1,028.4 $ 1,045.0 Accumulated depreciation (294.6 ) (288.1 ) Property, plant and equipment, net $ 733.8 $ 756.9 |
Restructuring and Other Charg_2
Restructuring and Other Charges (Income) (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of restructuring and other charges (income) | Our restructuring and other charges (income) are comprised of restructuring, asset disposals and other charges (income) as noted below. Three Months Ended March 31, (in Millions) 2019 2018 Restructuring charges $ 5.2 $ 2.6 Other charges (income), net 2.6 (82.5 ) Total restructuring and other charges (income) $ 7.8 $ (79.9 ) |
Schedule of restructuring charges and asset disposals | Restructuring Charges (in Millions) Severance and Employee Benefits (1) Other Charges (Income) (2) Asset Disposal Charges (3) Total DuPont Crop restructuring $ 2.7 $ 1.0 $ 0.2 $ 3.9 Other items — — 1.3 1.3 Three Months Ended March 31, 2019 $ 2.7 $ 1.0 $ 1.5 $ 5.2 DuPont Crop restructuring $ — $ — $ 1.0 $ 1.0 Other Items — 1.6 — 1.6 Three Months Ended March 31, 2018 $ — $ 1.6 $ 1.0 $ 2.6 ____________________ (1) Represents severance and employee benefit charges. (2) Primarily represents third-party costs associated with miscellaneous restructuring activities. (3) |
Restructuring reserve rollforward | The following table shows a roll forward of restructuring reserves, continuing and discontinued, that will result in cash spending. These amounts exclude asset retirement obligations. (in Millions) Balance at 12/31/18 (2) Change in reserves (3) Cash payments Other Balance at 3/31/19 (2) DuPont Crop restructuring $ 16.2 $ 3.7 $ (5.1 ) $ (0.2 ) $ 14.6 Other workforce related and facility shutdowns (1) 1.0 — (0.7 ) 0.5 0.8 Total $ 17.2 $ 3.7 $ (5.8 ) $ 0.3 $ 15.4 ____________________ (1) Primarily severance costs related to workforce reductions and facility shutdowns. (2) Included in "Accrued and other liabilities" on the condensed consolidated balance sheets. (3) Primarily severance, exited lease, contract termination and other miscellaneous exit costs. Any accelerated depreciation and impairment charges noted above that impacted our property, plant and equipment balances or other long-term assets are not included in the above tables. |
Schedule of other charges (income), net | Other charges (income), net Three Months Ended March 31, (in Millions) 2019 2018 Environmental charges, net $ 2.6 $ 2.5 Product portfolio sales — (85.0 ) Other charges (income), net $ 2.6 $ (82.5 ) |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt maturing within one year | Debt maturing within one year: (in Millions) March 31, 2019 December 31, 2018 Short-term foreign debt (1) $ 114.7 $ 106.5 Commercial paper (2) 493.5 55.2 Total short-term debt $ 608.2 $ 161.7 Current portion of long-term debt 385.6 386.0 Total short-term debt and current portion of long-term debt $ 993.8 $ 547.7 ____________________ (1) At March 31, 2019 , the average interest rate on the borrowings was 7.5 percent . (2) At March 31, 2019 , the average effective interest rate on the borrowings was 3.1 percent |
Schedule of long-term debt | Long-term debt: (in Millions) March 31, 2019 Interest Rate Percentage Maturity Date March 31, 2019 December 31, 2018 Pollution control and industrial revenue bonds (less unamortized discounts of $0.2 and $0.2, respectively) 1.7 - 6.5% 2021 - 2032 $ 51.6 $ 51.6 Senior notes (less unamortized discount of $0.7 and $0.8, respectively) 3.95 - 5.2% 2019 - 2024 999.3 999.2 2017 Term Loan Facility 3.7% 2022 1,400.0 1,400.0 Revolving Credit Facility (1) 5.1% 2022 — — Foreign debt 0 - 7.2% 2019 - 2024 88.0 89.1 Debt issuance cost (8.3 ) (8.9 ) Total long-term debt $ 2,530.6 $ 2,531.0 Less: debt maturing within one year 385.6 386.0 Total long-term debt, less current portion $ 2,145.0 $ 2,145.0 ____________________ (1) Letters of credit outstanding under our Revolving Credit Facility totaled $192.1 million and available funds under this facility were $814.3 million at March 31, 2019 . |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of discontinued operations | The results of our discontinued FMC Health and Nutrition operations are summarized below, including the results of these delayed sites included in the three months ended March 31, 2018: (in Millions) Three Months Ended March 31, 2019 2018 Revenue $ — $ 2.9 Costs of sales and services — 2.8 Income (loss) from discontinued operations before income taxes (1) $ — $ (3.1 ) Provision (benefit) for income taxes — (0.6 ) Total discontinued operations of FMC Health and Nutrition, net of income taxes, before divestiture related costs and adjustments $ — $ (2.5 ) Adjustment to gain on sale of FMC Health and Nutrition, net of income taxes — 16.2 Divestiture related costs and other adjustments of discontinued operations of FMC Health and Nutrition, net of income taxes 0.7 (0.5 ) Discontinued operations of FMC Health and Nutrition, net of income taxes, attributable to FMC Stockholders $ 0.7 $ 13.2 ____________________ (1) Results for the three months ended March 31, 2018 include an adjustment to retained liabilities of the disposed FMC Health and Nutrition business. (in Millions) Three Months Ended March 31, 2019 2018 Adjustment for workers’ compensation, product liability, other postretirement benefits and other, net of income tax benefit (expense) of ($4.4) and ($1.0) for the three months ended March 31, 2019 and 2018, respectively (1) $ 22.3 $ 3.6 Provision for environmental liabilities, net of recoveries, net of income tax benefit (expense) of zero and $0.5 for the three months ended March 31, 2019 and 2018, respectively (2) 0.2 (3.2 ) Provision for legal reserves and expenses, net of recoveries, net of income tax benefit of $1.0 and $1.8 for the three months ended March 31, 2019 and 2018, respectively (3.6 ) (7.1 ) Discontinued operations of FMC Health and Nutrition, net of income tax benefit (expense) of ($0.2) and ($2.6) for the three months ended March 31, 2019 and 2018, respectively 0.7 13.2 Discontinued operations of FMC Lithium, net of income tax benefit (expense) of ($4.7) and ($8.2) for the three months ended March 31, 2019 and 2018, respectively (10.0 ) 32.9 Discontinued operations, net of income taxes $ 9.6 $ 39.4 ____________________ (1) During the three months ended March 31, 2019, we finalized the sale of the first of two parcels of land of our discontinued site in Newark, California and recorded a gain of approximately $21 million , net of tax. Results for the three months ended March 31, 2019 include these real estate proceeds. (2) See a roll forward of our environmental reserves as well as discussion on significant environmental issues that occurred during 2019 (in Millions) Three Months Ended March 31, 2019 2018 Revenue $ 52.1 $ 102.8 Costs of sales and services 41.3 50.6 Income (loss) from discontinued operations before income taxes (1) $ 1.1 $ 43.8 Provision (benefit) for income taxes 6.0 8.8 Total discontinued operations of FMC Lithium, net of income taxes, before separation-related costs and other adjustments $ (4.9 ) $ 35.0 Separation-related costs and other adjustments of discontinued operations of FMC Lithium, net of income taxes (5.1 ) (2.1 ) Discontinued operations of FMC Lithium, net of income taxes $ (10.0 ) $ 32.9 ____________________ (1) For the three months ended March 31, 2018, amounts include $2.2 million of restructuring and other charges (income). The following table presents the major classes of assets and liabilities of FMC Lithium: (in Millions) March 31, 2019 December 31, 2018 Assets Current assets of discontinued operations (1) $ — $ 293.9 Property, plant and equipment (2) — 275.7 Other noncurrent assets (2) — 83.1 Total assets of discontinued operations $ — $ 652.7 Liabilities Current liabilities of discontinued operations (3) $ — $ 97.3 Noncurrent liabilities of discontinued operations (4) — 46.1 Total liabilities of discontinued operations $ — $ 143.4 Total net assets $ — $ 509.3 ____________________ (1) Primarily consists of cash and cash equivalents, trade receivables, and inventories. Presented as "Current assets of discontinued operations" on the condensed consolidated balance sheets as of December 31, 2018 . (2) Presented as "Noncurrent assets of discontinued operations" on the condensed consolidated balance sheets as of December 31, 2018 . (3) Presented as "Current liabilities of discontinued operations" on the condensed consolidated balance sheets as of December 31, 2018 . (4) Presented as "Noncurrent liabilities of discontinued operations" on the condensed consolidated balance sheets as of December 31, 2018 |
Environmental Obligations (Tabl
Environmental Obligations (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Environmental Remediation Obligations [Abstract] | |
Environmental reserves rollforward, continuing and discontinued | The table below is a roll forward of our total environmental reserves, continuing and discontinued: (in Millions) Gross Recoveries (3) Net Total environmental reserves at December 31, 2018 $ 529.4 $ (7.9 ) $ 521.5 Provision (Benefit) 2.5 — 2.5 (Spending) Recoveries (8.3 ) — (8.3 ) Foreign currency translation adjustments (0.7 ) — (0.7 ) Net change $ (6.5 ) $ — $ (6.5 ) Total environmental reserves at March 31, 2019 $ 522.9 $ (7.9 ) $ 515.0 Environmental reserves, current (1) $ 80.6 $ (1.1 ) $ 79.5 Environmental reserves, long-term (2) 442.3 (6.8 ) 435.5 Total environmental reserves at March 31, 2019 $ 522.9 $ (7.9 ) $ 515.0 ____________________ (1) These amounts are included within "Accrued and other liabilities" on the condensed consolidated balance sheets. (2) These amounts are included in "Environmental liabilities, continuing and discontinued" on the condensed consolidated balance sheets. (3) |
Schedule of environmental recoveries | The table below provides a roll forward of our environmental recoveries representing probable realization of claims against insurance carriers and other third parties. These recoveries are recorded as "Other assets including long-term receivables, net" in the condensed consolidated balance sheets. (in Millions) 12/31/2018 Increase in recoveries Cash received 3/31/2019 Environmental recoveries $ 30.5 0.1 — $ 30.6 |
Schedule of net environmental provision by operating and discontinued sites | The net provisions are comprised as follows: Three Months Ended March 31, (in Millions) 2019 2018 Environmental provisions, net - recorded to liabilities (1) $ 2.5 $ 6.2 Environmental provisions, net - recorded to assets (2) (0.1 ) — Environmental provision, net $ 2.4 $ 6.2 Continuing operations (3) $ 2.6 $ 2.5 Discontinued operations (4) (0.2 ) 3.7 Environmental provision, net $ 2.4 $ 6.2 ____________________ (1) See above roll forward of our total environmental reserves as presented on the condensed consolidated balance sheets. (2) See above roll forward of our total environmental recoveries as presented on the condensed consolidated balance sheets. (3) Recorded as a component of “Restructuring and other charges (income)” on the condensed consolidated statements of income (loss). See Note 10. Environmental obligations for continuing operations primarily represent obligations at shut down or abandoned facilities within businesses that do not meet the criteria for presentation as discontinued operations. (4) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Calculation of basic and diluted earnings per share | Earnings applicable to common stock and common stock shares used in the calculation of basic and diluted earnings per share are as follows: (in Millions, Except Share and Per Share Data) Three Months Ended March 31, 2019 2018 Earnings (loss) attributable to FMC stockholders: Continuing operations, net of income taxes $ 206.1 $ 227.8 Discontinued operations, net of income taxes 9.6 39.4 Net income (loss) attributable to FMC stockholders $ 215.7 $ 267.2 Less: Distributed and undistributed earnings allocable to restricted award holders (0.7 ) (1.0 ) Net income (loss) allocable to common stockholders $ 215.0 $ 266.2 Basic earnings (loss) per common share attributable to FMC stockholders: Continuing operations $ 1.56 $ 1.69 Discontinued operations 0.07 0.29 Net income (loss) attributable to FMC stockholders $ 1.63 $ 1.98 Diluted earnings (loss) per common share attributable to FMC stockholders: Continuing operations $ 1.55 $ 1.67 Discontinued operations 0.07 0.29 Net income (loss) attributable to FMC stockholders $ 1.62 $ 1.96 Shares (in thousands): Weighted average number of shares of common stock outstanding - Basic 131,887 134,589 Weighted average additional shares assuming conversion of potential common shares 1,327 1,568 Shares – diluted basis 133,214 136,157 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive income (loss) | Summarized below is the roll forward of accumulated other comprehensive income (loss), net of tax. (in Millions) Foreign currency adjustments Derivative Instruments (1) Pension and other postretirement benefits (2) Total Accumulated other comprehensive income (loss), net of tax at December 31, 2018 $ (101.5 ) $ 11.2 $ (218.6 ) $ (308.9 ) 2019 Activity Other comprehensive income (loss) before reclassifications (2.1 ) 0.9 — (1.2 ) Amounts reclassified from accumulated other comprehensive income (loss) — (3.6 ) 3.4 (0.2 ) Net current period other comprehensive income (loss) $ (2.1 ) $ (2.7 ) $ 3.4 $ (1.4 ) Adoption of accounting standard (Note 2) — 1.0 (54.1 ) (53.1 ) Distribution of FMC Lithium (3) 39.0 — — 39.0 Accumulated other comprehensive income (loss), net of tax at March 31, 2019 $ (64.6 ) $ 9.5 $ (269.3 ) $ (324.4 ) (in Millions) Foreign currency adjustments Derivative Instruments (1) Pension and other postretirement benefits (2) Total Accumulated other comprehensive income (loss), net of tax at December 31, 2017 $ (6.2 ) $ 5.2 $ (239.3 ) $ (240.3 ) 2018 Activity Other comprehensive income (loss) before reclassifications 49.3 1.5 0.6 51.4 Amounts reclassified from accumulated other comprehensive income (loss) — 0.4 3.0 3.4 Accumulated other comprehensive income (loss), net of tax at March 31, 2018 $ 43.1 $ 7.1 $ (235.7 ) $ (185.5 ) ____________________ (1) See Note 18 for more information. (2) See Note 16 for more information. (3) Represents the effects of the distribution of FMC Lithium. Refer to Note 1 for further information. |
Reclassification out of accumulated other comprehensive income | The table below provides details about the reclassifications from accumulated other comprehensive income (loss) and the affected line items in the condensed consolidated statements of income (loss) for each of the periods presented. Details about Accumulated Other Comprehensive Income Components Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (1) Affected Line Item in the Condensed Consolidated Statements of Income (Loss) Three Months Ended March 31, (in Millions) 2019 2018 Derivative instruments Foreign currency contracts $ 3.3 $ (1.9 ) Costs of sales and services Foreign currency contracts 1.3 1.4 Selling, general and administrative expenses Total before tax $ 4.6 $ (0.5 ) (1.0 ) 0.1 Provision for income taxes Amount included in net income (loss) $ 3.6 $ (0.4 ) Pension and other postretirement benefits (2) Amortization of prior service costs $ (0.1 ) $ (0.1 ) Selling, general and administrative expenses Amortization of unrecognized net actuarial and other gains (losses) (4.2 ) (3.6 ) Selling, general and administrative expenses Recognized loss due to curtailment and settlement — (0.9 ) Selling, general and administrative expenses Total before tax $ (4.3 ) $ (4.6 ) 0.9 1.6 Provision for income taxes Amount included in net income (loss) $ (3.4 ) $ (3.0 ) Total reclassifications for the period $ 0.2 $ (3.4 ) Amount included in net income ____________________ (1) Amounts in parentheses indicate charges to the condensed consolidated statements of income (loss). (2) |
Pensions and Other Postretire_2
Pensions and Other Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Components of net annual benefit cost (income) | The following table summarizes the components of net annual benefit cost (income): (in Millions) Three Months Ended March 31, Pensions Other Benefits 2019 2018 2019 2018 Service cost $ 1.1 $ 1.7 $ — $ — Interest cost 12.2 11.4 0.2 0.1 Expected return on plan assets (13.4 ) (15.8 ) — — Amortization of prior service cost (credit) 0.1 0.1 — — Recognized net actuarial and other (gain) loss 4.6 4.1 (0.2 ) (0.2 ) Recognized loss due to settlement (1) — 0.9 — — Net periodic benefit cost (income) $ 4.6 $ 2.4 $ — $ (0.1 ) ____________________ (1) |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of effective income tax rate reconciliation | The below chart provides a reconciliation between our reported effective tax rate and the EAETR of our continuing operations. Three Months Ended March 31, 2019 2018 (in Millions) Before Tax Tax Effective Tax Rate % Before Tax Tax Effective Tax Rate % Continuing operations $ 243.9 $ 36.3 14.9 % $ 290.7 $ 60.5 20.8 % Discrete items: Currency remeasurement (1) $ 1.9 $ 0.9 $ (1.7 ) $ 0.6 Other discrete items (2) 46.0 3.3 (53.5 ) (18.1 ) Tax only discrete items (3) — 2.4 — (8.3 ) Total discrete items $ 47.9 $ 6.6 $ (55.2 ) $ (25.8 ) Continuing operations, before discrete items $ 291.8 $ 42.9 $ 235.5 $ 34.7 Estimated Annualized Effective Tax Rate (EAETR) 14.7 % 14.7 % ___________________ (1) Represents transaction gains or losses for currency remeasurement offset by associated hedge gains or losses, which are accounted for discretely in accordance with U.S. GAAP. Certain transaction gains or losses for currency remeasurement are not taxable, while offsetting hedge gains or losses are taxable. (2) U.S. GAAP generally requires subsidiaries for which a full valuation allowance has been provided to be excluded from the EAETR. During the three months ended March 31, 2019, other discrete items were materially comprised of the discrete accounting for excluded pretax losses of subsidiaries for which a full valuation allowance has been provided. For the three months ended March 31, 2018, other discrete items represent the gain attributable to the sale of a portion of FMC’s European herbicide portfolio to Nufarm Limited partially offset by the discrete accounting for excluded pretax losses of subsidiaries for which a full valuation allowance has been provided. (3) For the three months ended March 31, 2019 and 2018, tax only discrete items are primarily comprised of the tax effect of currency remeasurement associated with foreign statutory operations, excess tax benefits associated with share-based compensation, and changes in prior year estimates of subsidiary tax liabilities. |
Financial Instruments, Risk M_2
Financial Instruments, Risk Management and Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of derivative instruments in statement of financial position, fair value | The following tables provide the gross fair value and net balance sheet presentation of our derivative instruments. March 31, 2019 Gross Amount of Derivatives (in Millions) Designated as Cash Flow Hedges Not Designated as Hedging Instruments Total Gross Amounts Gross Amounts Offset in the Condensed Consolidated Balance Sheet (3) Net Amounts Foreign exchange contracts $ 19.9 $ 4.2 $ 24.1 $ (6.8 ) $ 17.3 Interest rate contracts 0.1 — 0.1 — 0.1 Total derivative assets (1) $ 20.0 $ 4.2 $ 24.2 $ (6.8 ) $ 17.4 Foreign exchange contracts $ (6.8 ) $ (0.1 ) $ (6.9 ) $ 6.8 $ (0.1 ) Interest rate contracts (7.9 ) — (7.9 ) — (7.9 ) Total derivative liabilities (2) $ (14.7 ) $ (0.1 ) $ (14.8 ) $ 6.8 $ (8.0 ) Net derivative assets (liabilities) $ 5.3 $ 4.1 $ 9.4 $ — $ 9.4 December 31, 2018 Gross Amount of Derivatives (in Millions) Designated as Cash Flow Hedges Not Designated as Hedging Instruments Total Gross Amounts Gross Amounts Offset in the Condensed Consolidated Balance Sheet (3) Net Amounts Foreign exchange contracts $ 18.3 $ 1.5 $ 19.8 $ (8.1 ) $ 11.7 Total derivative assets (1) $ 18.3 $ 1.5 $ 19.8 $ (8.1 ) $ 11.7 Foreign exchange contracts $ (8.0 ) $ (0.2 ) $ (8.2 ) $ 8.1 $ (0.1 ) Interest rate contracts (0.2 ) — (0.2 ) — (0.2 ) Total derivative liabilities (2) $ (8.2 ) $ (0.2 ) $ (8.4 ) $ 8.1 $ (0.3 ) Net derivative assets (liabilities) $ 10.1 $ 1.3 $ 11.4 $ — $ 11.4 ____________________ (1) Net balance is included in “Prepaid and other current assets” in the condensed consolidated balance sheets. (2) Net balance is included in “Accrued and other liabilities” in the condensed consolidated balance sheets. (3) |
Schedule of derivative instruments, gain (loss) in statement of financial performance | The tables below summarize the gains or losses related to our cash flow hedges and derivatives not designated as hedging instruments. Derivatives in Cash Flow Hedging Relationships Three Months Ended March 31, Contracts Foreign Exchange Other Total (in Millions) 2019 2018 2019 2018 2019 2018 Unrealized hedging gains (losses) and other, net of tax $ 6.9 $ 1.5 $ (6.0 ) $ — $ 0.9 $ 1.5 Reclassification of deferred hedging (gains) losses, net of tax (1) (3.6 ) 0.2 — 0.2 (3.6 ) 0.4 Total derivative instrument impact on comprehensive income, net of tax $ 3.3 $ 1.7 $ (6.0 ) $ 0.2 $ (2.7 ) $ 1.9 ___________________ (1) See Note 15 for classification of amounts within the condensed consolidated statements of income (loss). Derivatives Not Designated as Hedging Instruments Amount of Pre-tax Gain or (Loss) Recognized in Income on Derivatives (1) Three Months Ended March 31, (in Millions) Location of Gain or (Loss) Recognized in Income on Derivatives 2019 2018 Foreign exchange contracts Cost of sales and services $ (2.9 ) $ (1.1 ) Total $ (2.9 ) $ (1.1 ) ___________________ (1) Amounts represent the gain or loss on the derivative instrument offset by the gain or loss on the hedged item. |
Schedule of fair value, assets and liabilities measured on recurring basis | The following tables present our fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis in the condensed consolidated balance sheets. During the periods presented there were no transfers between fair value hierarchy levels. (in Millions) March 31, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Derivatives – Foreign exchange (1) $ 17.3 $ — $ 17.3 $ — Derivatives – Interest rate (1) 0.1 — 0.1 — Other (2) 20.9 20.9 — — Total assets $ 38.3 $ 20.9 $ 17.4 $ — Liabilities Derivatives – Foreign exchange (1) $ 0.1 $ — $ 0.1 $ — Derivatives – Interest rate (1) 7.9 — 7.9 — Other (3) 31.2 28.7 2.5 — Total liabilities $ 39.2 $ 28.7 $ 10.5 $ — (in Millions) December 31, 2018 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets Derivatives – Foreign exchange (1) $ 11.7 $ — $ 11.7 $ — Other (2) 17.7 17.7 — — Total assets $ 29.4 $ 17.7 $ 11.7 $ — Liabilities Derivatives – Foreign exchange (1) $ 0.1 $ — $ 0.1 $ — Derivatives – Interest rate (1) 0.2 — 0.2 — Other (3) 27.4 24.3 3.1 — Total liabilities $ 27.7 $ 24.3 $ 3.4 $ — ____________________ (1) See the Fair Value of Derivative Instruments table within this Note for classification on the condensed consolidated balance sheets. (2) Consists of a deferred compensation arrangement, through which we hold various investment securities, recognized on our balance sheets. Both the asset and liability are recorded at fair value. Asset amounts are included in “Other assets including long-term receivables, net” in the condensed consolidated balance sheets. (3) Primarily consists of a deferred compensation arrangement recognized on our balance sheets. Both the asset and liability are recorded at fair value. Liability amounts are included in “Other long-term liabilities” in the condensed consolidated balance sheets. |
Fair value measurements, nonrecurring | The following table presents our fair value hierarchy for those assets and liabilities measured at fair value on a non-recurring basis in the condensed consolidated balance sheets during the year ended December 31, 2018 . There were no non-recurring fair value measurements in the condensed consolidated balance sheets during the three months ended March 31, 2019 . (in Millions) December 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Gains (Losses) (Year Ended December 31, 2018) Assets Impairment of intangibles (1) $ 3.1 $ — $ — $ 3.1 $ (1.8 ) Total assets $ 3.1 $ — $ — $ 3.1 $ (1.8 ) ____________________ (1) We recorded an impairment charge to write down the carrying value of the generic brand portfolio of approximately $2 million to its fair value. |
Guarantees, Commitments, and _2
Guarantees, Commitments, and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of estimated undiscounted potential future payments for guarantees | The following table provides the estimated undiscounted amount of potential future payments for each major group of guarantees at March 31, 2019 . These guarantees arise during the ordinary course of business from relationships with customers and nonconsolidated affiliates. Non-performance by the guaranteed party triggers the obligation requiring us to make payments to the beneficiary of the guarantee. Based on our experience these types of guarantees have not had a material effect on our consolidated financial position or on our liquidity. Our expectation is that future payment or performance related to the non-performance of others is considered unlikely. (in Millions) Guarantees: Guarantees of vendor financing - short-term (1) $ 78.4 Other debt guarantees (2) 4.2 Total $ 82.6 ____________________ (1) Represents guarantees to financial institutions on behalf of certain customers for their seasonal borrowing. This short-term amount is recorded within “Guarantees of vendor financing” on the condensed consolidated balance sheets. (2) These guarantees represent support provided to third-party banks for credit extended to various customers and nonconsolidated affiliates. The liability for the guarantees is recorded at an amount that approximates fair value (i.e. representing the stand-ready obligation) based on our historical collection experience and a current assessment of credit exposure. We believe the fair value of these guarantees is immaterial. The majority of these guarantees have an expiration date of less than one |
Financial Information and Acc_3
Financial Information and Accounting Policies (Details) - Livent shares in Millions | Oct. 15, 2018shares |
Class of Stock [Line Items] | |
Shares of common stock owned (in shares) | 123 |
Percentage of outstanding shares owned | 84.00% |
Recently Issued and Adopted A_2
Recently Issued and Adopted Accounting Pronouncements and Regulatory Items - Narrative (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Income tax effects reclassified from AOCI to retained earnings | $ 53.1 | ||
Right-of-use asset | $ 175.5 | ||
Lease liability | 206.6 | ||
Prepaid rent, accrued rent and lease incentives reclassified | 427.3 | $ 432.6 | |
Adoption of accounting standard | 2.4 | ||
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Right-of-use asset | 185.3 | ||
Lease liability | 215.9 | ||
Prepaid rent, accrued rent and lease incentives reclassified | $ (30.6) | ||
Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Adoption of accounting standard | 55.5 | ||
Retained Earnings | Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Adoption of accounting standard | $ 2.4 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2019USD ($)product | Dec. 31, 2018USD ($) | |
Disaggregation of Revenue [Line Items] | ||
Number of product categories | product | 3 | |
Maximum payment term | 360 days | |
Period between delivery and receipt of payment | 1 year | |
Increase (decrease) in liabilities | $ (175.1) | |
Period between prepayment and performance of obligations | 1 year | |
Contract with customer, liability | $ 283.3 | $ 458.4 |
Minimum | ||
Disaggregation of Revenue [Line Items] | ||
Contract payment term | 30 days | |
Maximum | ||
Disaggregation of Revenue [Line Items] | ||
Contract payment term | 90 days |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue by Major Geographical Region (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | $ 1,192.1 | $ 1,107.9 |
North America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 318.3 | 298.2 |
Latin America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 206.5 | 158.9 |
Europe, Middle East and Africa | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 412 | 398.8 |
Asia | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | $ 255.3 | $ 252 |
Revenue Recognition - Disaggr_2
Revenue Recognition - Disaggregation of Revenue By Major Product Category (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | $ 1,192.1 | $ 1,107.9 |
Insecticides | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 703.4 | 589.3 |
Herbicides | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 361.6 | 385.7 |
Fungicides | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 70.5 | 79 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | $ 56.6 | $ 53.9 |
Revenue Recognition - Assets an
Revenue Recognition - Assets and Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Receivables from contracts with customers, net of allowances | $ 2,619.5 | $ 2,228.3 |
Increase (decrease) in receivables | 391.2 | |
Contract liabilities: Advance payments from customers | 283.3 | $ 458.4 |
Increase (decrease) in liabilities | $ (175.1) |
Leases - Narrative (Details)
Leases - Narrative (Details) | Mar. 31, 2019 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease term | 20 years |
Real Estate Properties | Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease term | 1 year |
Real Estate Properties | Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease term | 20 years |
Non-Real Estate Properties | Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease term | 1 year |
Non-Real Estate Properties | Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease term | 10 years |
Leases - ROU Asset and Lease Li
Leases - ROU Asset and Lease Liability (Details) $ in Millions | Mar. 31, 2019USD ($) |
Assets | |
Operating lease ROU assets | $ 175.5 |
Liabilities | |
Operating lease current liabilities | 31.1 |
Operating lease noncurrent liabilities | $ 175.5 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 10 |
Variable lease cost | 1.3 |
Total lease cost | $ 11.3 |
Leases - Operating Lease Term a
Leases - Operating Lease Term and DIscount Rate (Details) | Mar. 31, 2019 |
Leases [Abstract] | |
Weighted-average remaining lease term (years) | 10 years 6 months |
Weighted-average discount rate | 4.30% |
Leases - Cash Flow Information
Leases - Cash Flow Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ (10.3) |
Supplemental non-cash information on lease liabilities arising from obtaining right-of-use assets: | |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 0.3 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) $ in Millions | Mar. 31, 2019USD ($) |
Operating Lease Liabilities, Payments Due [Abstract] | |
2019 (excluding the three months ending March 31, 2019) | $ 29.2 |
2020 | 34.7 |
2021 | 24.1 |
2022 | 20.7 |
2023 | 16.7 |
Thereafter | 136.5 |
Total undiscounted lease payments | 261.9 |
Less: Present value adjustment | (55.3) |
Present value of lease liabilities | $ 206.6 |
Leases - Future Minimum Payment
Leases - Future Minimum Payments Under ASC 840 (Details) $ in Millions | Dec. 31, 2018USD ($) |
Operating Leases | |
2019 | $ 36.7 |
2020 | 31.7 |
2021 | 21 |
2022 | 17.5 |
2023 | 13.5 |
Thereafter | 107.5 |
Capital Lease | |
2019 | 2.9 |
2020 | 2.9 |
2021 | 3.1 |
2022 | 3.1 |
2023 | 3.1 |
Thereafter | $ 4.3 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - DuPont - USD ($) $ in Millions | Nov. 01, 2017 | Mar. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||
Amount to be paid for assets acquired | $ 1,225.6 | ||
Supply agreement term | 5 years | ||
Revenues | $ 27 |
Acquisitions - Purchase Price A
Acquisitions - Purchase Price Allocation (Details) - DuPont $ in Millions | Nov. 01, 2017USD ($) |
Business Acquisition [Line Items] | |
Cash purchase price, net | $ 1,225.6 |
Cash proceeds from working capital and other adjustments | (21.5) |
Fair value of FMC Health and Nutrition sold to DuPont | 1,968.6 |
Total purchase consideration | $ 3,172.7 |
Acquisitions - Acquisition-rela
Acquisitions - Acquisition-related and Restructuring Charges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Business Acquisition [Line Items] | ||
Restructuring charges | $ 5.2 | $ 2.6 |
DuPont | ||
Business Acquisition [Line Items] | ||
Total Transaction-related charges | 16.5 | 49.5 |
DuPont Crop restructuring | ||
Business Acquisition [Line Items] | ||
Restructuring charges | 3.9 | 1 |
Legal and Professional Fees | DuPont | ||
Business Acquisition [Line Items] | ||
Acquisition-related charges | 16.5 | 19.6 |
Inventory Fair Value Amortization | DuPont | ||
Business Acquisition [Line Items] | ||
Acquisition-related charges | $ 0 | $ 29.9 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Goodwill [Roll Forward] | |
Balance, December 31, 2018 | $ 1,468.1 |
Foreign currency and other adjustments | 2.1 |
Balance, March 31, 2019 | $ 1,470.2 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Intangible assets subject to amortization (finite-lived) | ||
Gross | $ 1,223.8 | $ 1,228.1 |
Accumulated Amortization | (184) | (169.3) |
Net | 1,039.8 | 1,058.8 |
Intangible assets not subject to amortization (indefinite-lived) | ||
Indefinite-lived intangible assets | 1,640.6 | 1,644.6 |
Intangible assets net | 2,680.4 | 2,703.4 |
Finite and Indefinite lived intangible assets, gross | 2,864.4 | 2,872.7 |
Crop Protection Brands | ||
Intangible assets not subject to amortization (indefinite-lived) | ||
Indefinite-lived intangible assets | 1,259.1 | 1,259.1 |
Brands | ||
Intangible assets not subject to amortization (indefinite-lived) | ||
Indefinite-lived intangible assets | 380.8 | 384.8 |
In-process research & development | ||
Intangible assets not subject to amortization (indefinite-lived) | ||
Indefinite-lived intangible assets | 0.7 | 0.7 |
Customer relationships | ||
Intangible assets subject to amortization (finite-lived) | ||
Gross | 1,142.4 | 1,146.2 |
Accumulated Amortization | (142.4) | (128.7) |
Net | 1,000 | 1,017.5 |
Patents | ||
Intangible assets subject to amortization (finite-lived) | ||
Gross | 1.7 | 1.7 |
Accumulated Amortization | (0.8) | (0.8) |
Net | 0.9 | 0.9 |
Brands | ||
Intangible assets subject to amortization (finite-lived) | ||
Gross | 16.8 | 17 |
Accumulated Amortization | (6.2) | (5.9) |
Net | 10.6 | 11.1 |
Purchased and licensed technologies | ||
Intangible assets subject to amortization (finite-lived) | ||
Gross | 61 | 61.3 |
Accumulated Amortization | (32.8) | (32.1) |
Net | 28.2 | 29.2 |
Other intangibles | ||
Intangible assets subject to amortization (finite-lived) | ||
Gross | 1.9 | 1.9 |
Accumulated Amortization | (1.8) | (1.8) |
Net | $ 0.1 | $ 0.1 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Intangible Asset Amortization (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 15.6 | $ 13.5 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2019 | 62 | |
2020 | 62 | |
2021 | 62 | |
2022 | 62 | |
2023 | 62 | |
After 2023 | $ 61 |
Receivables (Details)
Receivables (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Beginning balance | $ 22.4 | $ 38.6 |
Additions - charged to expense | 3 | 58 |
Transfer from (to) allowance for credit losses (see below) | (17.3) | |
Net recoveries, write-offs and other | 1.9 | (56.9) |
Ending Balance | 27.3 | 22.4 |
Net long-term customer receivables | 89.3 | |
Allowance for long term customer receivables [Roll Forward] | ||
Beginning balance | 60.5 | 47.1 |
Additions - charged to expense | 7.4 | 13.4 |
Transfer from (to) allowance for doubtful accounts (see above) | 17.3 | |
Foreign currency adjustments | 0.3 | (4.1) |
Net recoveries, write-offs and other | (13.2) | |
Ending balance | $ 68.2 | 60.5 |
DuPont Crop restructuring | ||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Write-offs | $ 42 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 357.7 | $ 430.4 |
Work in process | 584.7 | 518.8 |
Raw materials, supplies and other | 327.8 | 206.9 |
First-in, first-out inventory | 1,270.2 | 1,156.1 |
Less: Excess of first-in, first-out cost over last-in, first-out cost | (133.1) | (130.6) |
Net inventories | $ 1,137.1 | $ 1,025.5 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Abstract] | ||
Property, plant and equipment | $ 1,028.4 | $ 1,045 |
Accumulated depreciation | (294.6) | (288.1) |
Property, plant and equipment, net | $ 733.8 | $ 756.9 |
Restructuring and Other Charg_3
Restructuring and Other Charges (Income) - Total Restructuring and Other Charges (income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | ||
Restructuring charges | $ 5.2 | $ 2.6 |
Other charges (income), net | 2.6 | (82.5) |
Total restructuring and other charges (income) | $ 7.8 | $ (79.9) |
Restructuring and Other Charg_4
Restructuring and Other Charges (Income) - Activity (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||
Severance and Employee Benefits | $ 2.7 | $ 0 |
Other Charges (Income) | 1 | 1.6 |
Asset Disposal Charges | 1.5 | 1 |
Total | 5.2 | 2.6 |
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve, Beginning Balance | 17.2 | |
Change in reserves | 3.7 | |
Cash payments | (5.8) | |
Other | 0.3 | |
Restructuring Reserve, Ending Balance | 15.4 | |
Environmental charges, net | 2.6 | 2.5 |
Product portfolio sales | 0 | (85) |
Other charges (income), net | 2.6 | (82.5) |
DuPont Crop restructuring | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance and Employee Benefits | 2.7 | 0 |
Other Charges (Income) | 1 | 0 |
Asset Disposal Charges | 0.2 | 1 |
Total | 3.9 | 1 |
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve, Beginning Balance | 16.2 | |
Change in reserves | 3.7 | |
Cash payments | (5.1) | |
Other | (0.2) | |
Restructuring Reserve, Ending Balance | 14.6 | |
Other items | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance and Employee Benefits | 0 | 0 |
Other Charges (Income) | 0 | 1.6 |
Asset Disposal Charges | 1.3 | 0 |
Total | 1.3 | $ 1.6 |
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve, Beginning Balance | 1 | |
Change in reserves | 0 | |
Cash payments | (0.7) | |
Other | 0.5 | |
Restructuring Reserve, Ending Balance | $ 0.8 |
Debt - Maturing within One Year
Debt - Maturing within One Year (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Short-term Debt [Line Items] | ||
Short-term foreign debt | $ 114.7 | $ 106.5 |
Commercial paper | 493.5 | 55.2 |
Total short-term debt | 608.2 | 161.7 |
Current portion of long-term debt | 385.6 | 386 |
Total short-term debt and current portion of long-term debt | $ 993.8 | $ 547.7 |
Short-term foreign debt | ||
Short-term Debt [Line Items] | ||
Average effective interest rate | 7.50% | |
Commercial Paper | ||
Short-term Debt [Line Items] | ||
Average effective interest rate | 3.10% |
Debt - Long-term (Details)
Debt - Long-term (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Debt issuance cost | $ (8.3) | $ (8.9) |
Total long-term debt | 2,530.6 | 2,531 |
Less: debt maturing within one year | 385.6 | 386 |
Total long-term debt, less current portion | 2,145 | 2,145 |
Pollution control and industrial revenue bonds (less unamortized discounts of $0.2 and $0.2, respectively) | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 51.6 | 51.6 |
Unamortized discounts | $ 0.2 | 0.2 |
Pollution control and industrial revenue bonds (less unamortized discounts of $0.2 and $0.2, respectively) | Minimum | ||
Debt Instrument [Line Items] | ||
Interest Rate Percentage | 1.70% | |
Pollution control and industrial revenue bonds (less unamortized discounts of $0.2 and $0.2, respectively) | Maximum | ||
Debt Instrument [Line Items] | ||
Interest Rate Percentage | 6.50% | |
Senior notes (less unamortized discount of $0.7 and $0.8, respectively) | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 999.3 | 999.2 |
Unamortized discounts | $ 0.7 | 0.8 |
Senior notes (less unamortized discount of $0.7 and $0.8, respectively) | Minimum | ||
Debt Instrument [Line Items] | ||
Interest Rate Percentage | 3.95% | |
Senior notes (less unamortized discount of $0.7 and $0.8, respectively) | Maximum | ||
Debt Instrument [Line Items] | ||
Interest Rate Percentage | 5.20% | |
2017 Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Interest Rate Percentage | 3.70% | |
Long-term debt, gross | $ 1,400 | 1,400 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Interest Rate Percentage | 5.10% | |
Long-term debt, gross | $ 0 | 0 |
Letters of credit outstanding amount | 192.1 | |
Credit Agreement, available funds | 814.3 | |
Foreign debt | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 88 | $ 89.1 |
Foreign debt | Minimum | ||
Debt Instrument [Line Items] | ||
Interest Rate Percentage | 0.00% | |
Foreign debt | Maximum | ||
Debt Instrument [Line Items] | ||
Interest Rate Percentage | 7.20% |
Debt - Credit Facility (Details
Debt - Credit Facility (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Covenant compliance, actual leverage ratio | 2.7 |
Maximum leverage ratio | 4.5 |
Covenant compliance, actual interest coverage ratio | 9.3 |
Minimum interest coverage | 3.5 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - USD ($) shares in Millions, $ in Millions | Nov. 01, 2017 | Mar. 01, 2019 |
FMC Health and Nutrition | Discontinued Operations, Disposed of by Sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Gain on sale, before tax | $ 918 | |
Gain on sale, net of tax | $ 727 | |
Transitional services agreement, term | 24 months | |
Transitional services agreement, extension option term | 6 months | |
Livent | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Shares of common stock owned (in shares) | 123 |
Discontinued Operations - Resul
Discontinued Operations - Results of Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Results of discontinued FMC operations: | ||
Discontinued operations, net of income taxes | $ 9.6 | $ 39.4 |
Discontinued operations of FMC Health and Nutrition, net of income taxes, attributable to FMC Stockholders | 9.6 | 39.4 |
FMC Lithium | ||
Results of discontinued FMC operations: | ||
Discontinued operations, net of income taxes | (10) | 32.9 |
FMC Lithium | Discontinued Operations, Disposed of by Sale | ||
Results of discontinued FMC operations: | ||
Revenue | 52.1 | 102.8 |
Costs of sales and services | 41.3 | 50.6 |
Income (loss) from discontinued operations before income taxes | 1.1 | 43.8 |
Provision (benefit) for income taxes | 6 | 8.8 |
Total discontinued operations, net of income taxes, before divestiture related costs and adjustments | (4.9) | 35 |
Separation-related costs and other adjustments of discontinued operations of FMC Lithium, net of income taxes | (5.1) | (2.1) |
Discontinued operations, net of income taxes | (10) | 32.9 |
Restructuring and other charges (income) | 2.2 | |
FMC Health and Nutrition | ||
Results of discontinued FMC operations: | ||
Discontinued operations, net of income taxes | 0.7 | 13.2 |
FMC Health and Nutrition | Discontinued Operations, Disposed of by Sale | ||
Results of discontinued FMC operations: | ||
Revenue | 0 | 2.9 |
Costs of sales and services | 0 | 2.8 |
Income (loss) from discontinued operations before income taxes | 0 | (3.1) |
Provision (benefit) for income taxes | 0 | (0.6) |
Total discontinued operations, net of income taxes, before divestiture related costs and adjustments | 0 | (2.5) |
Adjustment to gain on sale of FMC Health and Nutrition, net of income taxes | 0 | 16.2 |
Divestiture related costs and other adjustments of discontinued operations of FMC Health and Nutrition, net of income taxes | 0.7 | (0.5) |
Discontinued operations of FMC Health and Nutrition, net of income taxes, attributable to FMC Stockholders | $ 0.7 | $ 13.2 |
Discontinued Operations - Asset
Discontinued Operations - Assets and Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Current assets of discontinued operations held for sale | $ 0 | $ 293.9 |
Liabilities | ||
Current liabilities of discontinued operations held for sale | 0 | 97.3 |
Noncurrent liabilities of discontinued operations | 0 | 46.1 |
FMC Lithium | Discontinued Operations, Disposed of by Sale | ||
Assets | ||
Current assets of discontinued operations held for sale | 0 | 293.9 |
Property, plant and equipment | 0 | 275.7 |
Other noncurrent assets | 0 | 83.1 |
Total assets of discontinued operations held for sale | 0 | 652.7 |
Liabilities | ||
Current liabilities of discontinued operations held for sale | 0 | 97.3 |
Noncurrent liabilities of discontinued operations | 0 | 46.1 |
Total liabilities of discontinued operations held for sale | 0 | 143.4 |
Total net assets | $ 0 | $ 509.3 |
Discontinued Operations - Disco
Discontinued Operations - Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Discontinued operations, net of income taxes | $ 9.6 | $ 39.4 |
Adjustment for workers’ compensation, product liability, and other postretirement benefits, income tax benefit (expense) | (4.4) | (1) |
Provision for environmental liabilities, income tax benefit (expense) | 0 | 0.5 |
Provision for legal reserves and expenses, income tax benefit (expense) | 1 | 1.8 |
Adjustment for workers’ compensation, product liability, other postretirement benefits and other | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Discontinued operations, net of income taxes | 22.3 | 3.6 |
Provision for environmental liabilities, net of recoveries | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Discontinued operations, net of income taxes | 0.2 | (3.2) |
Provision for legal reserves and expenses | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Discontinued operations, net of income taxes | (3.6) | (7.1) |
FMC Health and Nutrition | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Discontinued operations, net of income taxes | 0.7 | 13.2 |
Discontinued operations, income tax benefit (expense) | (0.2) | (2.6) |
Discontinued operations of FMC Lithium | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Discontinued operations, net of income taxes | (10) | 32.9 |
Discontinued operations, income tax benefit (expense) | (4.7) | $ (8.2) |
Newark Environmental Site | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Gain on sale, net of tax | $ 21 |
Environmental Obligations (Deta
Environmental Obligations (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | ||||
Environmental reserves, long-term | $ 435.5 | $ 458.5 | ||
Environmental loss contingencies, net of expected recoveries, in excess of accrual | $ 190 | |||
Recorded Recoveries [Roll Forward] | ||||
Environmental charges, net | 2.6 | $ 2.5 | ||
Environmental provision, net | 2.4 | 6.2 | ||
Continuing Operations | ||||
Recorded Recoveries [Roll Forward] | ||||
Environmental charges, net | 2.6 | 2.5 | ||
Discontinued Operations | ||||
Recorded Recoveries [Roll Forward] | ||||
Environmental charges, net | (0.2) | 3.7 | ||
Other Assets Including Long-term Receivables, Net | ||||
Recorded Recoveries [Roll Forward] | ||||
Environmental Recoveries, beginning | 30.5 | |||
Increase in recoveries | 0.1 | |||
Cash received | 0 | |||
Environmental Recoveries, ending | 30.6 | |||
Other Liabilities | ||||
Recorded Recoveries [Roll Forward] | ||||
Environmental remediation provision, net | 2.5 | 6.2 | ||
Other Assets | ||||
Recorded Recoveries [Roll Forward] | ||||
Environmental remediation provision, net | (0.1) | $ 0 | ||
Gross | ||||
Accrual for Environmental Loss Contingencies [Roll Forward] | ||||
Total environmental reserves at December 31, 2018 | 529.4 | |||
Provision (Benefit) | 2.5 | |||
(Spending) Recoveries | (8.3) | |||
Foreign currency translation adjustments | (0.7) | |||
Net change | (6.5) | |||
Total environmental reserves at March 31, 2019 | 522.9 | |||
Environmental reserves, current | 80.6 | |||
Environmental reserves, long-term | 442.3 | |||
Total environmental reserves, net of recoveries at end of period | 529.4 | 522.9 | 529.4 | |
Recoveries | ||||
Accrual for Environmental Loss Contingencies [Roll Forward] | ||||
Total environmental reserves at December 31, 2018 | 7.9 | |||
Net change | 0 | |||
Total environmental reserves at March 31, 2019 | 7.9 | |||
Environmental reserves, current | 1.1 | |||
Environmental reserves, long-term | 6.8 | |||
Total environmental reserves, net of recoveries at end of period | 7.9 | 7.9 | 7.9 | |
Net | ||||
Accrual for Environmental Loss Contingencies [Roll Forward] | ||||
Total environmental reserves at December 31, 2018 | 521.5 | |||
Provision (Benefit) | 2.5 | |||
(Spending) Recoveries | (8.3) | |||
Foreign currency translation adjustments | (0.7) | |||
Net change | (6.5) | |||
Total environmental reserves at March 31, 2019 | 515 | |||
Environmental reserves, current | 79.5 | |||
Environmental reserves, long-term | 435.5 | |||
Total environmental reserves, net of recoveries at end of period | $ 521.5 | $ 515 | $ 521.5 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Antidilutive shares excluded from diluted EPS (in shares) | 400 | 200 |
Earnings (loss) attributable to FMC stockholders: | ||
Continuing operations, net of income taxes | $ 206.1 | $ 227.8 |
Discontinued operations, net of income taxes | 9.6 | 39.4 |
Net income (loss) attributable to FMC stockholders | 215.7 | 267.2 |
Less: Distributed and undistributed earnings allocable to restricted award holders | (0.7) | (1) |
Net income (loss) allocable to common stockholders | $ 215 | $ 266.2 |
Basic earnings (loss) per common share attributable to FMC stockholders: | ||
Continuing operations (in USD per share) | $ 1.56 | $ 1.69 |
Discontinued operations (in USD per share) | 0.07 | 0.29 |
Net income (loss) attributable to FMC stockholders (in USD per share) | 1.63 | 1.98 |
Diluted earnings (loss) per common share attributable to FMC stockholders: | ||
Continuing operations (in USD per share) | 1.55 | 1.67 |
Discontinued operations (in USD per share) | 0.07 | 0.29 |
Net income (loss) attributable to FMC stockholders (in USD per share) | $ 1.62 | $ 1.96 |
Shares (in thousands): | ||
Weighted average number of shares of common stock outstanding - Basic (in shares) | 131,887 | 134,589 |
Weighted average additional shares assuming conversion of potential common shares (in shares) | 1,327 | 1,568 |
Shares – diluted basis (in shares) | 133,214 | 136,157 |
Equity - Schedule of Accumulat
Equity - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Mar. 31, 2019 | Mar. 31, 2018 |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 3,210.4 | $ 3,210.4 | $ 2,707.1 |
Other comprehensive income (loss) before reclassifications | (1.2) | 51.4 | |
Amounts reclassified from accumulated other comprehensive income (loss) | (0.2) | 3.4 | |
Net current period other comprehensive income (loss) | (1.7) | 55.2 | |
Adoption of accounting standard (Note 2) | 53.1 | ||
Ending balance | 2,791.8 | 3,014.7 | |
Foreign currency adjustments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (101.5) | (101.5) | (6.2) |
Other comprehensive income (loss) before reclassifications | (2.1) | 49.3 | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | |
Net current period other comprehensive income (loss) | (2.1) | ||
Adoption of accounting standard (Note 2) | 0 | ||
Ending balance | (64.6) | 43.1 | |
Derivative instruments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 11.2 | 11.2 | 5.2 |
Other comprehensive income (loss) before reclassifications | 0.9 | 1.5 | |
Amounts reclassified from accumulated other comprehensive income (loss) | (3.6) | 0.4 | |
Net current period other comprehensive income (loss) | (2.7) | ||
Adoption of accounting standard (Note 2) | 1 | ||
Ending balance | 9.5 | 7.1 | |
Pension and other postretirement benefits | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (218.6) | (218.6) | (239.3) |
Other comprehensive income (loss) before reclassifications | 0 | 0.6 | |
Amounts reclassified from accumulated other comprehensive income (loss) | 3.4 | 3 | |
Net current period other comprehensive income (loss) | 3.4 | ||
Adoption of accounting standard (Note 2) | (54.1) | ||
Ending balance | (269.3) | (235.7) | |
Total | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ (308.9) | (308.9) | (240.3) |
Net current period other comprehensive income (loss) | (1.4) | ||
Adoption of accounting standard (Note 2) | (53.1) | ||
Ending balance | (324.4) | $ (185.5) | |
Discontinued Operations | Foreign currency adjustments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Net current period other comprehensive income (loss) | 39 | ||
Discontinued Operations | Derivative instruments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Net current period other comprehensive income (loss) | 0 | ||
Discontinued Operations | Pension and other postretirement benefits | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Net current period other comprehensive income (loss) | 0 | ||
Discontinued Operations | Total | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Net current period other comprehensive income (loss) | $ 39 |
Equity - Reclassification Out
Equity - Reclassification Out of Accumulated Other Comprehensive Income (Details) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Costs of sales and services | $ 647.4 | $ 605.4 |
Selling, general and administrative expenses | 183.9 | 192.5 |
Total before tax | (243.9) | (290.7) |
Provision for income taxes | (36.3) | (60.5) |
Net income (loss) | (217.2) | (269.6) |
Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net income (loss) | 0.2 | (3.4) |
Reclassification out of Accumulated Other Comprehensive Income | Derivative instruments | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total before tax | 4.6 | (0.5) |
Provision for income taxes | 1 | (0.1) |
Net income (loss) | 3.6 | (0.4) |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of prior service costs | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Selling, general and administrative expenses | (0.1) | (0.1) |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of unrecognized net actuarial and other gains (losses) | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Selling, general and administrative expenses | (4.2) | (3.6) |
Reclassification out of Accumulated Other Comprehensive Income | Recognized loss due to curtailment and settlement | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Selling, general and administrative expenses | 0 | (0.9) |
Reclassification out of Accumulated Other Comprehensive Income | Pension and other postretirement benefits | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total before tax | (4.3) | (4.6) |
Provision for income taxes | (0.9) | (1.6) |
Net income (loss) | (3.4) | (3) |
Reclassification out of Accumulated Other Comprehensive Income | Foreign currency contracts | Derivative instruments | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Costs of sales and services | 3.3 | (1.9) |
Selling, general and administrative expenses | $ 1.3 | $ 1.4 |
Equity - Additional Informatio
Equity - Additional Information (Details) - USD ($) shares in Millions, $ in Millions | Apr. 18, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | |
Dividends Payable [Line Items] | ||||
Dividend paid | [1] | $ 53.2 | $ 22.3 | |
Shares repurchased under repurchase program (in shares) | 1.3 | |||
Stock repurchase program, remaining authorized repurchase amount | $ 900 | |||
Subsequent Event | ||||
Dividends Payable [Line Items] | ||||
Dividend paid | $ 52.8 | |||
[1] | See Note 15 regarding quarterly cash dividend. |
Pensions and Other Postretire_3
Pensions and Other Postretirement Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Pensions | ||
Components of net annual benefit cost (income): | ||
Service cost | $ 1.1 | $ 1.7 |
Interest cost | 12.2 | 11.4 |
Expected return on plan assets | (13.4) | (15.8) |
Amortization of prior service cost (credit) | 0.1 | 0.1 |
Recognized net actuarial and other (gain) loss | 4.6 | 4.1 |
Recognized loss due to settlement | 0 | 0.9 |
Net periodic benefit cost (income) | 4.6 | 2.4 |
Expected cash contributions by employer | 7 | |
Other Benefits | ||
Components of net annual benefit cost (income): | ||
Service cost | 0 | 0 |
Interest cost | 0.2 | 0.1 |
Expected return on plan assets | 0 | 0 |
Amortization of prior service cost (credit) | 0 | 0 |
Recognized net actuarial and other (gain) loss | (0.2) | (0.2) |
Recognized loss due to settlement | 0 | 0 |
Net periodic benefit cost (income) | $ 0 | $ (0.1) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Total before tax | $ 243.9 | $ 290.7 |
Income tax expense | $ 36.3 | $ 60.5 |
Effective tax rate (percent) | 14.90% | 20.80% |
Discrete items Before Tax: | ||
Currency remeasurement | $ 1.9 | $ (1.7) |
Other discrete items | 46 | (53.5) |
Tax only discrete items | 0 | 0 |
Total discrete items | 47.9 | (55.2) |
Continuing operations, before discrete items | 291.8 | 235.5 |
Discrete Items, Tax: | ||
Currency remeasurement | 0.9 | 0.6 |
Other discrete items | 3.3 | (18.1) |
Tax only discrete items | 2.4 | (8.3) |
Total discrete items | 6.6 | (25.8) |
Continuing operations, before discrete items | $ 42.9 | $ 34.7 |
Estimated Annualized Effective Tax Rate (EAETR) | 14.70% | 14.70% |
Financial Instruments, Risk M_3
Financial Instruments, Risk Management and Fair Value Measurements - Narrative (Details) MMBTU in Millions | Mar. 31, 2019USD ($)MMBTU | Dec. 31, 2018USD ($) |
Derivative [Line Items] | ||
Estimated fair value of debt | $ 3,175,800,000 | $ 2,715,200,000 |
Carrying value of debt | 3,138,800,000 | $ 2,692,700,000 |
Designated as Cash Flow Hedges | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Derivative notional amount | $ 974,000,000 | |
Designated as Cash Flow Hedges | Energy contracts | ||
Derivative [Line Items] | ||
Nonmonetary notional amount of price risk cash flow hedge (in mmBTUs) | MMBTU | 0 | |
Designated as Cash Flow Hedges | Foreign Currency and Energy Contracts | ||
Derivative [Line Items] | ||
Cumulative changes in net gain (loss) from cash flow hedges | $ 7,600,000 | |
Not Designated as Hedging Instruments | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Derivative notional amount | 1,153,000,000 | |
Designated as Cash Flow Hedges | Designated as Cash Flow Hedges | ||
Derivative [Line Items] | ||
Cumulative changes in net gain (loss) from cash flow hedges | (6,200,000) | |
Designated as Cash Flow Hedges | Designated as Cash Flow Hedges | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Cumulative changes in net gain (loss) from cash flow hedges | 13,800,000 | |
Designated as Cash Flow Hedges | Designated as Cash Flow Hedges | Interest rate contracts | ||
Derivative [Line Items] | ||
Derivative notional amount | $ 500,000,000 |
Financial Instruments, Risk M_4
Financial Instruments, Risk Management and Fair Value Measurements - Fair Value of Derivatives by Balance Sheet Location (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Derivative Asset [Abstract] | ||
Total gross amounts | $ 24.2 | $ 19.8 |
Gross amounts offset in the condensed consolidated balance sheet | (6.8) | (8.1) |
Net amounts | 17.4 | 11.7 |
Derivative Liability [Abstract] | ||
Total gross amounts | (14.8) | (8.4) |
Gross amounts offset in the condensed consolidated balance sheet | 6.8 | 8.1 |
Net amounts | (8) | (0.3) |
Total gross amounts of derivative assets (liabilities) | 9.4 | 11.4 |
Net amounts of derivative assets (liabilities) | 9.4 | 11.4 |
Foreign exchange contracts | ||
Derivative Asset [Abstract] | ||
Total gross amounts | 24.1 | 19.8 |
Gross amounts offset in the condensed consolidated balance sheet | (6.8) | (8.1) |
Net amounts | 17.3 | 11.7 |
Derivative Liability [Abstract] | ||
Total gross amounts | (6.9) | (8.2) |
Gross amounts offset in the condensed consolidated balance sheet | 6.8 | 8.1 |
Net amounts | (0.1) | (0.1) |
Interest rate contracts | ||
Derivative Asset [Abstract] | ||
Total gross amounts | 0.1 | |
Gross amounts offset in the condensed consolidated balance sheet | 0 | |
Net amounts | 0.1 | |
Derivative Liability [Abstract] | ||
Total gross amounts | (7.9) | (0.2) |
Gross amounts offset in the condensed consolidated balance sheet | 0 | 0 |
Net amounts | (7.9) | (0.2) |
Designated as Cash Flow Hedges | ||
Derivative Asset [Abstract] | ||
Total gross amounts | 20 | 18.3 |
Derivative Liability [Abstract] | ||
Total gross amounts | (14.7) | (8.2) |
Total gross amounts of derivative assets (liabilities) | 5.3 | 10.1 |
Designated as Cash Flow Hedges | Foreign exchange contracts | ||
Derivative Asset [Abstract] | ||
Total gross amounts | 19.9 | 18.3 |
Derivative Liability [Abstract] | ||
Total gross amounts | (6.8) | (8) |
Designated as Cash Flow Hedges | Interest rate contracts | ||
Derivative Asset [Abstract] | ||
Total gross amounts | 0.1 | |
Derivative Liability [Abstract] | ||
Total gross amounts | (7.9) | (0.2) |
Not Designated as Hedging Instruments | ||
Derivative Asset [Abstract] | ||
Total gross amounts | 4.2 | 1.5 |
Derivative Liability [Abstract] | ||
Total gross amounts | (0.1) | (0.2) |
Total gross amounts of derivative assets (liabilities) | 4.1 | 1.3 |
Not Designated as Hedging Instruments | Foreign exchange contracts | ||
Derivative Asset [Abstract] | ||
Total gross amounts | 4.2 | 1.5 |
Derivative Liability [Abstract] | ||
Total gross amounts | (0.1) | (0.2) |
Not Designated as Hedging Instruments | Interest rate contracts | ||
Derivative Asset [Abstract] | ||
Total gross amounts | 0 | |
Derivative Liability [Abstract] | ||
Total gross amounts | $ 0 | $ 0 |
Financial Instruments, Risk M_5
Financial Instruments, Risk Management and Fair Value Measurements - Derivatives Gain (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Derivatives Designated as Hedging Instruments | |||
Unrealized hedging gains (losses) and other, net of tax | $ 0.9 | ||
Reclassification of deferred hedging (gains) losses, net of tax | [1] | (3.6) | |
Total derivative instruments, net of tax of ($1.0) and ($0.9) for the three months ended March 31, 2019 and 2018, respectively | (2.7) | ||
Unrealized hedging gains (losses) and other, net of tax | $ 1.5 | ||
Reclassification of deferred hedging (gains) losses, net of tax | [1] | 0.4 | |
Total derivative instruments, net of tax of ($1.0) and ($0.9) for the three months ended March 31, 2019 and 2018, respectively | 1.9 | ||
Designated as Cash Flow Hedges | |||
Derivatives Designated as Hedging Instruments | |||
Unrealized hedging gains (losses) and other, net of tax | 0.9 | ||
Reclassification of deferred hedging (gains) losses, net of tax | [1] | (3.6) | |
Total derivative instruments, net of tax of ($1.0) and ($0.9) for the three months ended March 31, 2019 and 2018, respectively | (2.7) | ||
Unrealized hedging gains (losses) and other, net of tax | 1.5 | ||
Reclassification of deferred hedging (gains) losses, net of tax | [1] | 0.4 | |
Total derivative instruments, net of tax of ($1.0) and ($0.9) for the three months ended March 31, 2019 and 2018, respectively | 1.9 | ||
Designated as Cash Flow Hedges | Foreign exchange contracts | |||
Derivatives Designated as Hedging Instruments | |||
Unrealized hedging gains (losses) and other, net of tax | 6.9 | ||
Reclassification of deferred hedging (gains) losses, net of tax | [1] | (3.6) | |
Total derivative instruments, net of tax of ($1.0) and ($0.9) for the three months ended March 31, 2019 and 2018, respectively | 3.3 | ||
Unrealized hedging gains (losses) and other, net of tax | 1.5 | ||
Reclassification of deferred hedging (gains) losses, net of tax | [1] | 0.2 | |
Total derivative instruments, net of tax of ($1.0) and ($0.9) for the three months ended March 31, 2019 and 2018, respectively | 1.7 | ||
Designated as Cash Flow Hedges | Other | |||
Derivatives Designated as Hedging Instruments | |||
Unrealized hedging gains (losses) and other, net of tax | (6) | ||
Reclassification of deferred hedging (gains) losses, net of tax | [1] | 0 | |
Total derivative instruments, net of tax of ($1.0) and ($0.9) for the three months ended March 31, 2019 and 2018, respectively | (6) | ||
Unrealized hedging gains (losses) and other, net of tax | 0 | ||
Reclassification of deferred hedging (gains) losses, net of tax | [1] | 0.2 | |
Total derivative instruments, net of tax of ($1.0) and ($0.9) for the three months ended March 31, 2019 and 2018, respectively | 0.2 | ||
Not Designated as Hedging Instruments | |||
Derivatives Not Designated as Hedging Instruments | |||
Amount of pre-tax gain or (loss) recognized in income on derivatives | (2.9) | (1.1) | |
Not Designated as Hedging Instruments | Foreign exchange contracts | Cost of sales and services | |||
Derivatives Not Designated as Hedging Instruments | |||
Amount of pre-tax gain or (loss) recognized in income on derivatives | $ (2.9) | $ (1.1) | |
[1] | For more detail on the components of these reclassifications and the affected line item in the condensed consolidated statements of income (loss) see Note 15. |
Financial Instruments, Risk M_6
Financial Instruments, Risk Management and Fair Value Measurements - Recurring Fair Value Measurements (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Derivatives | $ 24.2 | $ 19.8 |
Liabilities | ||
Derivative Liabilities | 14.8 | 8.4 |
Foreign exchange contracts | ||
Assets | ||
Derivatives | 24.1 | 19.8 |
Liabilities | ||
Derivative Liabilities | 6.9 | 8.2 |
Interest rate contracts | ||
Assets | ||
Derivatives | 0.1 | |
Liabilities | ||
Derivative Liabilities | 7.9 | 0.2 |
Fair Value, Measurements, Recurring | ||
Assets | ||
Other | 20.9 | 17.7 |
Total assets | 38.3 | 29.4 |
Liabilities | ||
Other | 31.2 | 27.4 |
Total liabilities | 39.2 | 27.7 |
Fair Value, Measurements, Recurring | Foreign exchange contracts | ||
Assets | ||
Derivatives | 17.3 | 11.7 |
Liabilities | ||
Derivative Liabilities | 0.1 | 0.1 |
Fair Value, Measurements, Recurring | Interest rate contracts | ||
Assets | ||
Derivatives | 0.1 | |
Liabilities | ||
Derivative Liabilities | 7.9 | 0.2 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Other | 20.9 | 17.7 |
Total assets | 20.9 | 17.7 |
Liabilities | ||
Other | 28.7 | 24.3 |
Total liabilities | 28.7 | 24.3 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign exchange contracts | ||
Assets | ||
Derivatives | 0 | 0 |
Liabilities | ||
Derivative Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate contracts | ||
Assets | ||
Derivatives | 0 | |
Liabilities | ||
Derivative Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Other | 0 | 0 |
Total assets | 17.4 | 11.7 |
Liabilities | ||
Other | 2.5 | 3.1 |
Total liabilities | 10.5 | 3.4 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Foreign exchange contracts | ||
Assets | ||
Derivatives | 17.3 | 11.7 |
Liabilities | ||
Derivative Liabilities | 0.1 | 0.1 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Interest rate contracts | ||
Assets | ||
Derivatives | 0.1 | |
Liabilities | ||
Derivative Liabilities | 7.9 | 0.2 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Other | 0 | 0 |
Total assets | 0 | 0 |
Liabilities | ||
Other | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Foreign exchange contracts | ||
Assets | ||
Derivatives | 0 | 0 |
Liabilities | ||
Derivative Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Interest rate contracts | ||
Assets | ||
Derivatives | 0 | |
Liabilities | ||
Derivative Liabilities | $ 0 | $ 0 |
Financial Instruments, Risk M_7
Financial Instruments, Risk Management and Fair Value Measurements - Nonrecurring Fair Value (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Impairment of intangibles | $ 3.1 | |
Total assets | 3.1 | |
Total gains (losses) on total assets | (1.8) | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Impairment of intangibles | 0 | |
Total assets | 0 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Impairment of intangibles | 0 | |
Total assets | 0 | |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Impairment of intangibles | 3.1 | |
Total assets | 3.1 | |
Brands | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Impairment of intangible assets | $ (2) | |
Brands | Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Total gains (losses) on impairment of intangibles | $ (1.8) |
Guarantees, Commitments, and _3
Guarantees, Commitments, and Contingencies (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Guarantor Obligations [Line Items] | |
Guarantees | $ 82.6 |
Expiration period | 1 year |
Guarantees of vendor financing - short-term | |
Guarantor Obligations [Line Items] | |
Guarantees | $ 78.4 |
Other debt guarantees | |
Guarantor Obligations [Line Items] | |
Guarantees | $ 4.2 |
Uncategorized Items - fmc033119
Label | Element | Value |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 281,800,000 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | 134,400,000 |
AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (53,100,000) |