Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 15, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | CHART INDUSTRIES INC | |
Entity Central Index Key | 0000892553 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 31,732,891 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 71.9 | $ 118.1 |
Accounts receivable, less allowances of $9.9 and $8.5, respectively | 205.2 | 194.8 |
Inventories, net | 234.7 | 233.1 |
Unbilled contract revenue | 68.9 | 54.5 |
Prepaid expenses | 17.8 | 14 |
Other current assets | 46.7 | 47.2 |
Total Current Assets | 645.2 | 661.7 |
Property, plant, and equipment, net | 384.6 | 361.1 |
Goodwill | 537.1 | 520.7 |
Identifiable intangible assets, net | 322.5 | 330.4 |
Other assets | 23.9 | 23.8 |
TOTAL ASSETS | 1,913.3 | 1,897.7 |
Current Liabilities | ||
Accounts payable | 121.1 | 125.5 |
Customer advances and billings in excess of contract revenue | 129.5 | 130 |
Accrued salaries, wages, and benefits | 31.4 | 46.6 |
Current portion of warranty reserve | 8.8 | 8.6 |
Short-term debt and current portion of long-term debt | 214.8 | 11.2 |
Other current liabilities | 73.6 | 44.7 |
Total Current Liabilities | 579.2 | 366.6 |
Long-term debt | 318 | 533.2 |
Long-term deferred tax liabilities | 73.1 | 76.4 |
Accrued pension liabilities | 11.5 | 11.7 |
Other long-term liabilities | 38 | 20.8 |
Total Liabilities | 1,019.8 | 1,008.7 |
Equity | ||
Common stock, par value $0.01 per share – 150,000,000 shares authorized, 31,731,862 and 31,363,650 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively | 0.3 | 0.3 |
Additional paid-in capital | 468.2 | 460.2 |
Retained earnings | 454.8 | 453.9 |
Accumulated other comprehensive loss | (34.5) | (29.9) |
Total Chart Industries, Inc. Shareholders’ Equity | 888.8 | 884.5 |
Noncontrolling interests | 4.7 | 4.5 |
Total Equity | 893.5 | 889 |
TOTAL LIABILITIES AND EQUITY | $ 1,913.3 | $ 1,897.7 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 9.9 | $ 8.5 |
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (shares) | 31,731,862 | 31,363,650 |
Common stock, shares outstanding (shares) | 31,731,862 | 31,363,650 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Sales | $ 289.3 | $ 244.1 |
Cost of sales | 222.2 | 177.2 |
Gross profit | 67.1 | 66.9 |
Selling, general, and administrative expenses | 55.3 | 46.6 |
Amortization expense | 7.2 | 5.5 |
Operating expenses | 62.5 | 52.1 |
Operating income | 4.6 | 14.8 |
Other expenses: | ||
Interest expense, net | 5.3 | 6.4 |
Financing costs amortization | 0.4 | 0.3 |
Foreign currency (gain) loss | (0.1) | 1.8 |
Other expenses, net | 5.6 | 8.5 |
(Loss) income from continuing operations before income taxes | (1) | 6.3 |
Income tax (benefit) expense | (2) | 1.6 |
Net income from continuing operations | 1 | 4.7 |
Income from discontinued operations, net of tax | 0 | 1.6 |
Net income | 1 | 6.3 |
Less: Income attributable to noncontrolling interests of continuing operations, net of taxes | 0.1 | 0.5 |
Net income attributable to Chart Industries, Inc. | 0.9 | 5.8 |
Net income attributable to Chart Industries, Inc. | ||
Income from continuing operations | 0.9 | 4.2 |
Income from discontinued operations, net of tax | 0 | 1.6 |
Net income attributable to Chart Industries, Inc. | $ 0.9 | $ 5.8 |
Basic earnings per common share attributable to Chart Industries, Inc. | ||
Income from continuing operations (usd per share) | $ 0.03 | $ 0.14 |
Income from discontinued operations (usd per share) | 0 | 0.05 |
Net income attributable to Chart Industries, Inc. (usd per share) | 0.03 | 0.19 |
Diluted earnings per common share attributable to Chart Industries, Inc. | ||
Income from continuing operations (usd per share) | 0.03 | 0.13 |
Income from discontinued operations (usd per share) | 0 | 0.05 |
Net income attributable to Chart Industries, Inc. (usd per share) | $ 0.03 | $ 0.18 |
Weighted-average number of common shares outstanding: | ||
Basic (shares) | 31,570 | 30,910 |
Diluted (shares) | 33,810 | 31,660 |
Comprehensive (loss) income, net of taxes | $ (3.5) | $ 18.8 |
Less: Comprehensive income attributable to noncontrolling interests, net of taxes | 0.2 | 0.6 |
Comprehensive (loss) income attributable to Chart Industries, Inc., net of taxes | $ (3.7) | $ 18.2 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) € in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | ||
OPERATING ACTIVITIES | |||
Net income | $ 1 | $ 6.3 | |
Less: Income from discontinued operations | 0 | 1.6 | |
Income from continuing operations | 1 | 4.7 | |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 16 | 12.7 | |
Interest accretion of convertible notes discount | 1.8 | 2.5 | |
Employee share-based compensation expense | 2.4 | 2.9 | |
Financing costs amortization | 0.4 | 0.3 | |
Unrealized foreign currency transaction gain | (0.3) | (0.4) | |
Other non-cash operating activities | 2.5 | 1.2 | |
Changes in assets and liabilities, net of acquisitions: | |||
Accounts receivable | (12.2) | 15.6 | |
Inventory | (10.4) | (19.5) | |
Unbilled contract revenues and other assets | (11.2) | 7.4 | |
Accounts payable and other liabilities | (20.7) | (20.8) | |
Customer advances and billings in excess of contract revenue | (2.5) | 13.4 | |
Net Cash (Used In) Provided By Operating Activities | (33.2) | 20 | |
INVESTING ACTIVITIES | |||
Capital expenditures | (5.9) | (6.2) | |
Acquisition of businesses, net of cash acquired | (2.8) | (12.5) | |
Government grants | (0.2) | 0.1 | |
Net Cash Used In Investing Activities | (8.9) | (18.6) | |
FINANCING ACTIVITIES | |||
Borrowings on revolving credit facilities | 18.8 | 38 | |
Repayments on revolving credit facilities | (27) | (26.8) | |
Payments for debt issuance costs | 0 | (0.3) | |
Proceeds from exercise of stock options | 8.3 | 1.3 | |
Common stock repurchases | (2.7) | (2.2) | |
Net Cash (Used In) Provided By Financing Activities | (2.6) | 10 | |
DISCONTINUED OPERATIONS | |||
Cash Provided By Operating Activities | [1] | 0 | 3 |
Cash Used In Investing Activities | [2] | 0 | (0.4) |
Cash Provided By Discontinued Operations | 0 | 2.6 | |
Effect of exchange rate changes on cash and cash equivalents | (1.5) | 3.9 | |
Net (decrease) increase in cash, cash equivalents, restricted cash, and restricted cash equivalents | (46.2) | 17.9 | |
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period | [3] | 119.1 | 131.4 |
CASH, CASH EQUIVALENTS, RESTRICTED CASH, AND RESTRICTED CASH EQUIVALENTS AT END OF PERIOD | [3] | $ 72.9 | $ 149.3 |
[1] | Includes depreciation expense of $0.4 and amortization expense of $0.6 for the three months ended March 31, 2018. | ||
[2] | Includes capital expenditures of $0.4 for the three months ended March 31, 2018 . | ||
[3] | Includes restricted cash and restricted cash equivalents of $1.0 in other assets at March 31, 2019 and $6.5 ($5.5 in other current assets and $1.0 in other assets) at March 31, 2018. Includes restricted cash and restricted cash equivalents of $1.0 in other assets at December 31, 2018. For further information regarding restricted cash and restricted cash equivalents balances, refer to Note 7, “Debt and Credit Arrangements.” |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parentheticals) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Capital expenditures, discontinued operations | $ 0.4 |
Restricted cash | 6.5 |
Restricted cash, current | 5.5 |
Restricted cash, noncurrent | 1 |
Assets disposed of by sales | BioMedical | |
Depreciation expense, discontinued operations | 0.4 |
Amortization expense | $ 0.6 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Equity (Unaudited) Statement - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Non-controlling Interests |
Beginning balance at Dec. 31, 2017 | $ 805.2 | $ 0.3 | $ 445.7 | $ 364.3 | $ (8.1) | $ 3 |
Beginning balance (shares) at Dec. 31, 2017 | 30,810,000 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 6.3 | 5.8 | 0.5 | |||
Other comprehensive (loss) income | 12.4 | 12.4 | 0 | |||
Share-based compensation expense | 3.2 | 3.2 | ||||
Common stock issued from share-based compensation plans | 1.3 | 1.3 | ||||
Common stock issued from share-based compensation plans (shares) | 200,000 | |||||
Common stock repurchases | (2.2) | (2.2) | ||||
Common stock repurchases (shares) | (40,000) | |||||
Other | 0.1 | 0.1 | ||||
Ending balance at Mar. 31, 2018 | 828.6 | $ 0.3 | 448 | 372.4 | 4.3 | 3.6 |
Ending balance (shares) at Mar. 31, 2018 | 30,970,000 | |||||
Beginning balance at Dec. 31, 2018 | $ 889 | $ 0.3 | 460.2 | 453.9 | (29.9) | 4.5 |
Beginning balance (shares) at Dec. 31, 2018 | 31,363,650 | 31,360,000 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | $ 1 | 0.9 | 0.1 | |||
Other comprehensive (loss) income | (4.5) | (4.6) | 0.1 | |||
Share-based compensation expense | 2.4 | 2.4 | ||||
Common stock issued from share-based compensation plans | 8.3 | 8.3 | ||||
Common stock issued from share-based compensation plans (shares) | 410,000 | |||||
Common stock repurchases | (2.7) | (2.7) | ||||
Common stock repurchases (shares) | (40,000) | |||||
Ending balance at Mar. 31, 2019 | $ 893.5 | $ 0.3 | $ 468.2 | $ 454.8 | $ (34.5) | $ 4.7 |
Ending balance (shares) at Mar. 31, 2019 | 31,731,862 | 31,730,000 |
Basis of Preparation
Basis of Preparation | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Preparation | Basis of Preparation The accompanying unaudited condensed consolidated financial statements of Chart Industries, Inc. and its consolidated subsidiaries (herein referred to as the “Company,” “Chart,” “we,” “us,” or “our”) have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for annual financial statements. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2018 . In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 . Nature of Operations : We are a leading independent global manufacturer of highly engineered equipment servicing multiple market applications in Energy and Industrial Gas. Our unique product portfolio is used throughout the liquid gas supply chain in the production, storage, distribution and end-use of atmospheric, hydrocarbon, and industrial gases. Chart has domestic operations located across the United States and an international presence in Asia, Australia, Europe and the Americas. Principles of Consolidation: The unaudited condensed consolidated financial statements include the accounts of Chart Industries, Inc. and its subsidiaries. Intercompany accounts and transactions are eliminated in consolidation. Use of Estimates: The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements. These estimates may also affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and assumptions. Recently Issued Accounting Standards: In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-15, “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” This ASU clarifies the accounting treatment for implementation costs for cloud computing arrangements (hosting arrangements) that is a service contract. This guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within that fiscal year. Early adoption is permitted. We are currently assessing the effect that this ASU will have on our financial position, results of operations, and disclosures. In August 2018, the FASB issued ASU 2018-14, “Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans.” This ASU adds, modifies and clarifies several disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. This guidance is effective for fiscal years ending after December 15, 2020. Early adoption is permitted. We are currently assessing the effect that this ASU will have on our financial position, results of operations, and disclosures. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” This ASU adds, modifies and removes several disclosure requirements relative to the three levels of inputs used to measure fair value in accordance with Topic 820, “Fair Value Measurement.” This guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within that fiscal year. Early adoption is permitted. We are currently assessing the effect that this ASU will have on our financial position, results of operations, and disclosures. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” and subsequently issued additional guidance that modified ASU 2016-13. ASU 2016-13 and the subsequent modifications are identified as Accounting Standards Codification (“ASC”) 326.” The standard requires an entity to change its accounting approach in determining impairment of certain financial instruments, including trade receivables, from an “incurred loss” to a “current expected credit loss” model. The standard will be effective for fiscal years beginning after December 15, 2019, including interim periods within such fiscal years. Early adoption is permitted. We are currently assessing the effect that ASC 326 will have on our financial position, results of operations, and disclosures. Recently Adopted Accounting Standards: In July 2018, the FASB issued ASU 2018-09, “Codification Improvements.” This ASU makes amendments to multiple codification Topics. The transition and effective date guidance are based on the facts and circumstances of each amendment. Some of the amendments in this ASU do not require transition guidance and were effective upon issuance of this ASU. However, many of the amendments in this ASU had transition guidance with effective dates for annual periods beginning after December 15, 2018. The adoption of this guidance did not have a material impact on our financial position, results of operations or disclosures. In February 2018, the FASB issued ASU 2018-02, “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” The FASB issued the update to provide amended guidance to “allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act.” Additionally, under the new guidance an entity will be required to provide certain disclosures regarding stranded tax effects. The guidance was effective for fiscal years beginning after December 15, 2018, including interim periods within those years. The Company adopted this guidance effective January 1, 2019. The adoption of this guidance did not impact our financial position, results of operations or disclosures. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” The ASU expands and enhances hedge accounting to become more closely aligned with an entity’s risk management activities through hedging strategies. The ASU provides changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results in the financial statements and creates more transparency and better understandability around how economic results are presented in the financial statements. In addition, the new guidance makes certain targeted improvements to ease the application of accounting guidance relative to hedge effectiveness. This guidance was applied prospectively for annual periods and interim periods beginning after December 15, 2018. We adopted this guidance effective January 1, 2019. The adoption of this guidance did not impact our financial position, results of operations or disclosures. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) and other subsequent amendments collectively identified as ASC 842, related to leases to increase transparency and comparability among organizations by requiring the recognition of right-of-use (“ROU”) assets and lease liabilities on the balance sheet. Effective January 1, 2019, (“the Commencement Date”) the Company adopted the new lease accounting standard using the modified retrospective transition option of applying the new standard at the adoption date for all leases with terms greater than 12 months. The adoption of the new standard resulted in the recording of ROU assets, primarily consisting of leased facilities and equipment and lease liabilities of $34.8 as of the Commencement Date. The adoption did not have a material impact on our unaudited condensed consolidated statement of income and comprehensive income or cash flows related to existing leases for the three months ended March 31, 2019. As a result, there was no cumulative-effect adjustment. We elected certain practical expedients and as such did not reassess the following: 1) whether any expired or existing contracts are or contain leases, 2) lease classification for any expired or existing leases, 3) initial direct costs for any expired or existing leases and 4) whether existing or expired land easements are or contain leases. However, we will evaluate new or modified land easements under the new guidance after the Commencement Date. We also elected the practical expedient to not separate lease and non-lease components. In addition, we implemented internal controls and key system functionality to enable the preparation of financial information on adoption. At lease inception, we determine if an arrangement is a lease and if it includes options to extend or terminate the lease if it is reasonably certain that the options will be exercised. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Operating leases are recognized as ROU assets and are included within property, plant and equipment, net and lease liabilities are included in other current liabilities and other liabilities in our unaudited condensed consolidated balance sheet as of the Commencement Date and at March 31, 2019. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized on the Commencement Date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available on the Commencement Date in determining the present value of lease payments. As of March 31, 2019, ROU assets and lease liabilities were $29.8 and $33.1 ( $7.1 of which was current), respectively. The weighted-average remaining term for lease contracts was 7.2 years at March 31, 2019, with maturity dates ranging from May 2019 to August 2027. The weighted-average discount rate was 4.7% at March 31, 2019. Certain leases contain rent escalation clauses and lease concessions that require additional rental payments in the later years of the term. Rent expense for these types of leases is recognized on a straight-line basis over the minimum lease term. We incurred $2.0 and $2.5 of rental expense under operating leases for the three months ended March 31, 2019 and March 31, 2018, respectively. Adjustments for straight-line rental expense for the respective periods was not material and as such, the majority of expense recognized was reflected in cash used in operating activities for the respective periods. This expense consisted primarily of payments for base rent on building and equipment leases. Payments related to short-term lease costs and taxes and variable service charges on leased properties were immaterial. In addition, we have the right, but no obligation, to renew certain leases for various renewal terms. The following table summarizes future minimum lease payments for non-cancelable operating leases as of March 31, 2019 and December 31, 2018: March 31, December 31, 2019 (1) $ 5.8 $ 7.9 2020 6.3 6.9 2021 5.6 5.7 2022 5.3 5.3 2023 4.6 4.6 Thereafter (2) 9.1 9.2 Total future minimum lease payments $ 36.7 $ 39.6 _______________ (1) Amount as of March 31, 2019 represents lease payments for the remaining nine months, April 2019 through December 2019. (2) As of March 31, 2019, future minimum lease payments for non-cancelable operating leases for period subsequent to 2023 relate to 11 leased facilities. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations On December 20, 2018, we closed the sale of our oxygen-related products business to NGK SPARK PLUG CO., LTD. (the “Divestiture”). As a result of the Divestiture, the asset group, which included our respiratory and on-site generation systems businesses, qualified for discontinued operations for the three months ended March 31, 2018 . As such, the financial results of the respiratory therapy and on-site generation systems businesses are reflected in our unaudited condensed consolidated statements of income and comprehensive income as discontinued operations for the prior-year period presented. Summarized Financial Information of Discontinued Operations The following table represents income from discontinued operations, net of tax: Three Months Ended March 31, 2018 Sales $ 35.6 Cost of sales 25.4 Selling, general and administrative expenses 7.5 Amortization expense 0.6 Operating income (1) 2.1 Other income, net 0.2 Income before income taxes 2.3 Income tax expense 0.7 Income from discontinued operations, net of tax $ 1.6 _______________ (1) Includes depreciation expense of $0.4 for the three months ended March 31, 2018 . |
Reportable Segments
Reportable Segments | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Reportable Segments | Reportable Segments As previously reported in our Annual Report on Form 10-K for the year ended December 31, 2018, the structure of our internal organization is divided into the following reportable segments, which are also our operating segments: Energy & Chemicals (“E&C”), Distribution and Storage Western Hemisphere (“D&S West”) and Distribution and Storage Eastern Hemisphere (“D&S East”). Corporate includes operating expenses for executive management, accounting, tax, treasury, corporate development, human resources, information technology, investor relations, legal, internal audit, and risk management. Corporate support functions are not currently allocated to the segments. The following table represents information for our reportable segments and our corporate function: Three Months Ended March 31, 2019 Energy & Chemicals D&S West D&S East Intersegment Eliminations Corporate Consolidated Sales to external customers (1) $ 105.6 $ 118.0 $ 68.7 $ (3.0 ) $ — $ 289.3 Depreciation and amortization expense 8.6 2.9 4.2 — 0.3 16.0 Operating (loss) income (1) (2) (3) (1.3 ) 25.6 (2.3 ) (1.1 ) (16.3 ) 4.6 Capital expenditures 3.2 1.2 1.0 — 0.5 5.9 Three Months Ended March 31, 2018 Energy & Chemicals D&S West D&S East Intersegment Eliminations Corporate Consolidated Sales to external customers $ 89.9 $ 100.6 $ 55.1 $ (1.5 ) $ — $ 244.1 Depreciation and amortization expense 6.6 2.9 2.9 — 0.3 12.7 Operating income (loss) (2) (3) 2.8 22.2 3.7 (0.4 ) (13.5 ) 14.8 Capital expenditures 2.0 1.1 1.9 — 1.2 6.2 _______________ (1) Includes sales and operating loss for VRV S.r.l and its subsidiaries (“VRV”), included in the E&C and D&S East segment results since the acquisition date, November 15, 2018 as follows: • Sales were $22.1 (E&C: $8.6 , D&S East: $13.5 ) for the three months ended March 31, 2019 . • Operating loss was $(8.1) (E&C: $(2.8) , D&S East: $(5.3) ) for the three months ended March 31, 2019 ., which includes VRV inventory step-up of $1.7 . (2) Includes restructuring costs of $7.4 and $0.9 for the three months ended March 31, 2019 and 2018 respectively. See Note 15, Restructuring Activities. (3) Includes transaction-related costs of $0.9 and $1.3 for the three months ended March 31, 2019 and 2018 , respectively. Transaction-related costs include costs associated with business development and other one-time transactions. Product Sales Information Three Months Ended March 31, 2019 Energy & Chemicals D&S West D&S East Intersegment Eliminations Consolidated Natural gas processing (including petrochemical) applications $ 70.3 $ — $ — $ — $ 70.3 Liquefied natural gas (LNG) applications 14.6 22.1 12.1 — 48.8 Industrial gas applications 7.1 — — — 7.1 HVAC, power and refining applications 13.6 — — — 13.6 Bulk industrial gas applications — 37.8 40.2 (0.3 ) 77.7 Packaged gas industrial applications — 36.1 16.4 (1.0 ) 51.5 Cryobiological storage — 22.0 — (1.7 ) 20.3 Total $ 105.6 $ 118.0 $ 68.7 $ (3.0 ) $ 289.3 Three Months Ended March 31, 2018 Energy & Chemicals D&S West D&S East Intersegment Eliminations Consolidated Natural gas processing (including petrochemical) applications $ 58.7 $ — $ — $ — $ 58.7 Liquefied natural gas (LNG) applications 9.0 13.0 20.4 (0.2 ) 42.2 Industrial gas applications 3.4 — — — 3.4 HVAC, power and refining applications 18.8 — — — 18.8 Bulk industrial gas applications — 28.6 24.8 (0.4 ) 53.0 Packaged gas industrial applications — 39.9 9.9 (0.9 ) 48.9 Cryobiological storage — 19.1 — — 19.1 Total $ 89.9 $ 100.6 $ 55.1 $ (1.5 ) $ 244.1 Total Assets March 31, December 31, Energy & Chemicals $ 909.6 $ 889.2 D&S West 442.8 420.3 D&S East 495.6 496.1 Corporate 65.3 92.1 Total $ 1,913.3 $ 1,897.7 |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregation of Revenue The following table represents a disaggregation of revenue by timing of revenue along with the reportable segment for each category: Three Months Ended March 31, 2019 Energy & Chemicals D&S West D&S East Intersegment Eliminations Consolidated Point in time $ 74.1 $ 107.4 $ 63.9 $ (3.0 ) $ 242.4 Over time 31.5 10.6 4.8 — 46.9 Total $ 105.6 $ 118.0 $ 68.7 $ (3.0 ) $ 289.3 Three Months Ended March 31, 2018 Energy & Chemicals D&S West D&S East Intersegment Eliminations Consolidated Point in time $ 23.9 $ 91.3 $ 50.5 $ (1.5 ) $ 164.2 Over time 66.0 9.3 4.6 — 79.9 Total $ 89.9 $ 100.6 $ 55.1 $ (1.5 ) $ 244.1 Refer to Note 3 , “ Reportable Segments ,” for a table of revenue disaggregated by product application along with the reportable segment for each category. Contract Balances The following table represents changes in our contract assets and contract liabilities balances: March 31, 2019 December 31, 2018 Year-to-date Change ($) Year-to-date Change (%) Contract assets Accounts receivable, net of allowances $ 205.2 $ 194.8 10.4 5.3 % Unbilled contract revenue 68.9 54.5 14.4 26.4 % Contract liabilities Customer advances and billings in excess of contract revenue $ 129.5 $ 130.0 $ (0.5 ) (0.4 )% Long-term deferred revenue 1.3 1.4 (0.1 ) (7.1 )% Revenue recognized for the three months ended March 31, 2019 and 2018 , that was included in the contract liabilities balance at the beginning of each year was $37.0 , and $38.9 , respectively. The amount of revenue recognized during the three months ended March 31, 2019 from performance obligations satisfied or partially satisfied in previous periods as a result of changes in the estimates of variable consideration related to long-term contracts, was not significant. Remaining Performance Obligations Remaining performance obligations represent the transaction price of firm signed purchase orders or other written contractual commitments from customers for which work has not been performed, or is partially completed, and excludes unexercised contract options and potential orders. As of March 31, 2019 , the estimated revenue expected to be recognized in the future related to remaining performance obligations was $733.8 . We expect to recognize revenue on approximately 68.5% of the remaining performance obligations over the next 12 months and with the remaining over the next few years thereafter. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The following table summarizes the components of inventory: March 31, December 31, Raw materials and supplies $ 112.5 $ 97.7 Work in process 44.7 53.0 Finished goods 77.5 82.4 Total inventories, net $ 234.7 $ 233.1 The allowance for excess and obsolete inventory balance at March 31, 2019 and December 31, 2018 was $8.7 and $9.0 , respectively. |
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 Goodwill The following table represents the changes in goodwill by segment: Energy & Chemicals D&S West D&S East Consolidated Balance at December 31, 2018 $ 295.8 $ 151.3 $ 73.6 $ 520.7 Foreign currency translation adjustments (0.6 ) — (1.7 ) (2.3 ) Purchase price adjustment (1) 7.7 0.8 10.2 18.7 Balance at March 31, 2019 $ 302.9 $ 152.1 $ 82.1 $ 537.1 Accumulated goodwill impairment loss at March 31, 2019 and December 31, 2018 $ 64.6 $ 82.5 $ — $ 147.1 _______________ (1) For the three months ended March 31, 2019, we made an adjustment to the preliminary purchase price allocation of $17.9 ( $7.7 in E&C and $10.2 in D&S East) for the VRV acquisition and $0.8 for the Skaff acquisition. For further information see Note 9 , “ Business Combinations ”. Intangible Assets The following table displays the gross carrying amount and accumulated amortization for finite-lived intangible assets and indefinite-lived intangible assets (exclusive of goodwill) (1) : March 31, 2019 December 31, 2018 Weighted-average Estimated Useful Life Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Finite-lived intangible assets: Customer relationships 14 years $ 252.3 $ (96.1 ) $ 254.0 $ (92.0 ) Unpatented technology 12 years 38.9 (5.5 ) 39.4 (5.1 ) Land use rights 50 years 12.4 (1.3 ) 12.2 (1.3 ) Trademarks and trade names 14 years 12.9 (1.0 ) 13.5 (1.1 ) Patents and other 7 years 12.8 (1.1 ) 14.0 (1.5 ) Total finite-lived intangible assets 14 years $ 329.3 $ (105.0 ) $ 333.1 $ (101.0 ) Indefinite-lived intangible assets: Trademarks and trade names 98.2 — 98.3 — Total intangible assets $ 427.5 $ (105.0 ) $ 431.4 $ (101.0 ) _______________ (1) Amounts include the impact of foreign currency translation. Fully amortized amounts are written off. Amortization expense for intangible assets subject to amortization was $7.2 and $5.5 for the three months ended March 31, 2019 and 2018 , respectively. We estimate amortization expense to be recognized during the next five years as follows: For the Year Ending December 31, 2019 $ 21.0 2020 26.8 2021 20.2 2022 19.3 2023 19.2 See Note 9 , “ Business Combinations ” for further information related to intangible assets acquired during 2018. Government Grants We received certain government grants related to land use rights for capacity expansion in China (“China Government Grants”). China Government Grants are generally recorded in other current liabilities and other long-term liabilities in our unaudited condensed consolidated balance sheets and generally recognized into income over the useful life of the associated assets ( 10 to 50 years). China Government Grants are presented in our unaudited condensed consolidated balance sheets as follows: March 31, December 31, Current $ 0.5 $ 0.5 Long-term 7.9 7.7 Total China Government Grants $ 8.4 $ 8.2 We also received government grants from certain local jurisdictions within the United States, which are recorded in other assets in the unaudited condensed consolidated balance sheets and were not significant for the periods presented. |
Debt and Credit Arrangements
Debt and Credit Arrangements | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt and Credit Arrangements | Debt and Credit Arrangements Summary of Outstanding Borrowings The following table represents the components of our borrowings: March 31, December 31, Convertible notes due November 2024: Principal amount $ 258.8 $ 258.8 Unamortized discount (48.6 ) (50.4 ) Unamortized debt issuance costs (4.3 ) (4.5 ) Convertible notes due November 2024, net of unamortized discount and debt issuance costs 205.9 203.9 Senior secured revolving credit facility due November 2022 318.0 329.3 Foreign facilities 8.9 11.2 Total debt, net of unamortized discount and debt issuance costs 532.8 544.4 Less: current maturities (1) (214.8 ) (11.2 ) Long-term debt $ 318.0 $ 533.2 _______________ (1) Includes $205.9 of convertible notes due 2024, net of unamortized discount and debt issuance costs. 2024 Convertible Notes On November 6, 2017, we issued 1.00% Convertible Senior Subordinated Notes due November 2024 (the “2024 Notes”) in the aggregate principal amount of $258.8 , pursuant to an Indenture, dated as of such date (the “Indenture”). The 2024 Notes bear interest at an annual rate of 1.00% , payable on May 15 and November 15 of each year, beginning on May 15, 2018, and will mature on November 15, 2024 unless earlier converted or repurchased. The 2024 Notes are senior subordinated unsecured obligations of the Company and are not guaranteed by any of our subsidiaries. The 2024 Notes are senior in right of payment to our future subordinated debt, equal in right of payment with the Company’s future senior subordinated debt, and are subordinated in right of payment to our existing and future senior indebtedness, including indebtedness under our existing credit agreement. A conversion of the 2024 Notes may be settled in cash, shares of our common stock or a combination of cash and shares of our common stock, at our election (subject to, and in accordance with, the settlement provisions of the Indenture). The initial conversion rate for the 2024 Notes is 17.0285 shares of common stock (subject to adjustment as provided for in the Indenture) per $1,000 principal amount of the 2024 Notes, which is equal to an initial conversion price of approximately $58.725 per share, representing a conversion premium of approximately 35% above the closing price of our common stock of $43.50 per share on October 31, 2017. In addition, following certain corporate events that occur prior to the maturity date as described in the Indenture, we will pay a make-whole premium by increasing the conversion rate for a holder who elects to convert its 2024 Notes in connection with such a corporate event in certain circumstances. For purposes of calculating earnings per share, if the average market price of our common stock exceeds the applicable conversion price during the periods reported, shares contingently issuable under the 2024 Notes will have a dilutive effect with respect to our common stock. Since our closing common stock price of $90.52 at the end of the period exceeded the conversion price of $58.725 , the if-converted value exceeded the principal amount of the 2024 Notes by approximately $140.1 at March 31, 2019 . As described below, we entered into convertible note hedge transactions, which are expected to reduce the potential dilution with respect to our common stock upon conversion of the 2024 Notes. Holders of the 2024 Notes may convert their 2024 Notes at their option at any time prior to the close of business on the business day immediately preceding August 15, 2024 only under the following circumstances: (1) during any fiscal quarter commencing after December 31, 2017 (and only during such fiscal quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the applicable conversion price for the 2024 Notes on each applicable trading day; (2) during the five business day period after any 10 consecutive trading day period (the “measurement period”) in which the “trading price” (as defined in the Indenture) per one thousand U.S. dollar principal amount of Notes for each trading day of such measurement period was less than 97% of the product of the last reported sale price of our common stock and the applicable conversion rate for the 2024 Notes on each such trading day; or (3) upon the occurrence of specified corporate events described in the Indenture. On or after August 15, 2024 until the close of business on the second scheduled trading day immediately preceding November 15, 2024, holders may convert their 2024 Notes at the option of the holder regardless of the foregoing circumstances. Upon conversion, we may settle the conversion by paying or delivering either shares of our common stock, solely cash, or a combination of cash and shares of our common stock, at our election. It is our intention to settle the principal amount of the 2024 Notes in cash and excess conversion value in shares of our common stock. We reassess the convertibility of the 2024 Notes and the related balance sheet classification on a quarterly basis. As of March 31, 2019 , the 2024 Notes were convertible at the option of the shareholders. This conversion right, which will remain available until June 30, 2019 , was triggered since the closing price of our common stock was greater than or equal to $76.3425 ( 130% of the conversion price of the 2024 Notes) for at least 20 days during the last 30 consecutive days ending on March 31, 2019 . Since we would be required to pay cash and or issue stock to holders if they elect to convert their 2024 Notes during the second quarter of 2019, the $210.3 long-term liability component of the 2024 Notes was classified as a current liability in the unaudited condensed consolidated balance sheet as of March 31, 2019 . There have been no conversions as of the date of this filing. In the event that holders of the 2024 Notes elect to convert, we expect to fund any resultant cash settlement from either working capital, borrowings under our credit facility, or both. We allocated the gross proceeds of the 2024 Notes between the liability and equity components of the 2024 Notes. The initial liability component of $200.1 , which was recorded as long-term debt, represents the fair value of similar debt instruments that have no conversion rights. The initial equity component of $58.7 , which was recorded as additional paid-in capital, represents the debt discount and was calculated as the difference between the fair value of the liability component and gross proceeds of the 2024 Notes. The liability component was recognized at the present value of its associated cash flows using a 4.8% straight-debt rate and is being accreted to interest expense over the term of the 2024 Notes. We recorded $5.3 in deferred debt issuance costs associated with the 2024 Notes, which are being amortized over the term of the 2024 Notes using the effective interest method. We also recorded $1.5 in equity issuance costs, which was recorded as a reduction to additional paid-in capital. The following table summarizes interest accretion of the 2024 Notes discount, 1.0% contractual interest coupon and financing costs amortization associated with the 2024 Notes: Three Months Ended March 31, 2019 2018 2024 Notes, interest accretion of convertible notes discount $ 1.8 $ 1.7 2024 Notes, 1.0% contractual interest coupon 0.6 0.6 2024 Notes, total interest expense $ 2.4 $ 2.3 2024 Notes, financing costs amortization $ 0.2 $ 0.2 Convertible Note Hedge and Warrant Transactions Associated with the 2024 Notes In connection with the pricing of the 2024 Notes, we entered into convertible note hedge transactions (the “Note Hedge Transactions”) with certain parties, including the initial purchasers of the 2024 Notes (the “Option Counterparties”). The Note Hedge Transactions are expected generally to reduce the potential dilution upon any future conversion of the 2024 Notes. Payments for the Note Hedge Transactions totaled approximately $59.5 and were recorded as a reduction to additional paid-in capital in the December 31, 2017 consolidated balance sheet. We also entered into separate, privately negotiated warrant transactions (the “Warrant Transactions”) with the Option Counterparties to acquire up to 4.41 shares of our common stock. Proceeds received from the issuance of the Warrant Transactions totaled approximately $46.0 and were recorded as an addition to additional paid-in capital in the December 31, 2017 consolidated balance sheet. The strike price of the Warrant Transactions will initially be $71.775 per share (subject to adjustment), which is approximately 65% above the last reported sale price of our common stock on October 31, 2017. The Warrant Transactions could have a dilutive effect to our stockholders to the extent that the market price per share of our common stock, as measured under the terms of the Warrant Transactions, exceeds the applicable strike price of the warrants. The Note Hedge Transactions and Warrant Transactions effectively increased the conversion price of the 2024 Notes. The net cost of the Note Hedge Transactions and Warrant Transactions was approximately $13.5 . 2018 Convertible Notes On August 1, 2018, our 2.00% Convertible Senior Subordinated Notes due August 2018 (the “2018 Notes”) matured. The aggregate outstanding principal was $57.1 at August 1, 2018. During the nine months ended September 30, 2018, we settled upon maturity the 2018 Notes for total cash consideration of $57.1 . Additionally, $0.6 of interest, which had previously been accrued, was paid at settlement. The following table summarizes interest accretion of the 2018 Notes discount, 2.00% contractual interest coupon, and financing costs amortization associated with the 2018 Notes: Three Months Ended March 31, 2018 2018 Notes, interest accretion of convertible notes discount $ 0.8 2018 Notes, 2.0% contractual interest coupon 0.6 2018 Notes, total interest expense $ 1.4 Convertible Note Hedge, Capped Call and Warrant Transactions Associated with the 2018 Notes The convertible note hedge and capped call transactions associated with the 2018 Notes expired in August 2018, with immaterial exercises. Approximately 90% of the separate warrants associated with the 2018 Notes expired without exercise. Prior to the expiration date of February 26, 2019, a portion of the separate warrants were exercised. These exercises were not material. Senior Secured Revolving Credit Facility We have a five -year $550.0 senior secured revolving credit facility (the “SSRCF”), which matures on November 3, 2022. The SSRCF includes a $25.0 sub-limit for the issuance of swingline loans and a $100.0 base sub-limit along with a $100.0 discretionary sub-limit to be used for letters of credit. There is a foreign currency limit of $250.0 under the SSRCF which can be used for foreign currency denominated letters of credit and borrowings in a foreign currency, in each case in currencies agreed upon with the lenders. In addition, the facility permits borrowings up to $250.0 sub-limit made by our wholly-owned subsidiaries, Chart Industries Luxembourg S.à r.l. (“Chart Luxembourg”) and Chart Asia Investment Company Limited (“Chart Asia”). The SSRCF also includes an expansion option permitting us to add up to an aggregate $225.0 in term loans or revolving credit commitments from its lenders. Revolving loans under the SSRCF bear interest, at the applicable Borrower’s election, at a rate per annum equal to either (i) the greatest of (a) the Prime Rate (as defined in the SSRCF) in effect on such day, (b) the NYFRB Rate (as defined in the SSRCF) in effect on such day plus 1/2 of 1.0% and (c) the Adjusted LIBOR (as defined in the SSRCF) for a one-month interest period on such day (or if such day is not a business day, the immediately preceding business day) plus 1.0% (the “Adjusted Base Rate”), plus a margin that varies with our leverage ratio, or (ii) the Adjusted LIBOR (as defined in the SSRCF) for the relevant interest period in effect for such day, plus a margin that varies with our leverage ratio. In addition, we are required to pay a commitment fee of between 0.20% and 0.375% of the unused revolver balance and a letter of credit participation fee equal to the daily aggregate letter of credit exposure at the rate per annum equal to the Applicable Margin for Eurocurrency Revolving Facility Borrowings (as defined in the SSRCF, ranging from 1.5% to 2.5% , depending on the leverage ratio calculated at each fiscal quarter end). A fronting fee must be paid on each letter of credit that is issued equal to 0.125% per annum of the stated dollar amount of the letter of credit. Significant financial covenants for the SSRCF include a maximum leverage ratio of 4.50 for the four fiscal quarter-period ending December 31, 2018, with such required ratio stepping down over five subsequent quarters until it reaches 3.50 for each such period ending on or after March 31, 2020, and a minimum interest coverage to EBITDA ratio of 3.00 . The required leverage ratio can be relaxed on up to two occasions, upon notification to the lenders, to 4.00 for up to four consecutive fiscal quarters, for acquisitions and plant expansions of $100.0 or greater. The SSRCF contains a number of other customary covenants including, but not limited to, restrictions on our ability to incur additional indebtedness, create liens or other encumbrances, sell assets, enter into sale and lease-back transactions, make certain payments, investments, loans, advances or guarantees, make acquisitions and engage in mergers or consolidations and pay dividends or distributions. At March 31, 2019 , we were in compliance with all covenants. We recorded $3.2 in deferred debt issuance costs associated with the SSRCF, which are being amortized over the five -year term of the SSRCF. At March 31, 2019 , unamortized debt issuance costs associated with the SSRCF were $2.9 . For the three months ended March 31, 2019 and 2018 , deferred financing fees amortization was $0.2 and $0.1 , respectively. As of March 31, 2019 , there was $318.0 in borrowings outstanding under the SSRCF (“SSRCF Borrowings”) bearing a weighted-average interest rate of 3.9% and $49.4 in letters of credit issued and bank guarantees supported by the SSRCF. At March 31, 2019 , the SSRCF had availability of $182.6 . For the three months ended March 31, 2019 , and 2018 , interest expense related to the SSRCF Borrowings and swingline loans outstanding was $3.2 and $2.5 , respectively. The obligations under the SSRCF are guaranteed by the Company and substantially all of its U.S. subsidiaries and secured by substantially all of the assets of Chart and our U.S. subsidiaries and 65% of the capital stock of our material non-U.S. subsidiaries (as defined by the SSRCF) that are owned by U.S. subsidiaries. Foreign Facilities – China Chart Cryogenic Engineering Systems (Changzhou) Company Limited (“CCESC”), a wholly-owned subsidiary of the Company, CAIRE Medical Technology (Chengdu) Co., Ltd (formerly known as Chart Biomedical (Chengdu) Co. Ltd., a wholly-owned subsidiary of the Company, and Chart Cryogenic Distribution Equipment (Changzhou) Company Limited (“CCDEC”), a joint venture of the Company, maintain joint banking facilities (the “China Facilities”) which include a revolving facility with 50.0 million Chinese yuan (equivalent to $7.4 ) in borrowing capacity which can be utilized for either revolving loans, bonds/guarantees, or bank draft acceptances. Any borrowings made by CCESC, CCDEC or Chengdu under the China Facilities are guaranteed by the Company. At March 31, 2019 , there was 34.0 million Chinese yuan (equivalent to $5.0 ) outstanding under this facility, bearing interest at 4.90% . CCESC and CCDEC, together, had a combined total of 2.77 million Chinese yuan (equivalent to $0.4 ), in bank guarantees at March 31, 2019 . Chart Cryogenic Distribution Equipment (Changzhou) Company Limited (“CCDEC”), a joint venture of the Company, maintained an unsecured credit facility whereby CCDEC was able to borrow up to 70.0 million Chinese yuan (equivalent to $10.4 ) for working capital purposes. This facility is effective until August 28, 2019. There were no borrowings under this facility during its term. CCDEC had 5.2 million Chinese yuan (equivalent to $0.8 ), in bank guarantees at March 31, 2019 . CCESC has a term loan that is secured by certain CCESC land use rights and allows for up to 86.6 million Chinese yuan (equivalent to $12.9 ) in borrowings. The loan has a term of eight years with semi-annual installment payments of at least 10.0 million Chinese yuan and a final maturity date of May 26, 2024. At March 31, 2019 , there was 6.6 million Chinese yuan (equivalent to $1.0 ) outstanding on this loan, bearing interest at 5.39% with a maturity date of June 30, 2019. Foreign Facilities – India VRV Asia Pacific Private Limited, a wholly-owned subsidiary of the Company, maintains a secured credit facility with capacity of up to 600.0 million Indian rupees (equivalent to $8.7 ), which can be utilized for overdraft facilities, working capital demand loans, bank guarantees, letters of credit, or export packing credits. At March 31, 2019 , there was 106.9 million Indian rupees (equivalent to $1.5 ) outstanding as export packing credits bearing an average interest rate of 4.35% whereas the 151.9 million Indian rupees (equivalent to $2.2 ) outstanding as letters of credit and bank guarantees which are not subject to interest charges. At December 31, 2018, there was 144.0 million Indian rupees (equivalent to $2.1 ) outstanding as letters of credit and bank guarantees which were not subject to interest charges. Foreign Facilities – Europe Chart Ferox, a.s. (“Ferox”), a wholly-owned subsidiary of the Company, maintains a secured credit facility with capacity of up to 135.0 million Czech koruna (equivalent to $5.9 ) and two secured credit facilities with capacity of up to 7.0 million euros (equivalent to $7.9 ). All three facilities (the “Ferox Credit Facilities”) allow Ferox to request bank guarantees and letters of credit. None of these facilities allow revolving credit borrowings. Under two of the facilities, Ferox must pay letter of credit and guarantee fees equal to 0.70% per annum on the face amount of each guarantee or letter of credit, and under one facility, Ferox must pay the letter of credit and guarantee fees equal to 0.50% . Ferox’s land, buildings, and cash collateral secure the credit facilities. At March 31, 2019 there were bank guarantees of 144.1 million Czech koruna (equivalent to $6.3 ) supported by the Ferox Credit Facilities. Chart Luxembourg maintains an overdraft facility with $5.0 in borrowing capacity. There were no borrowings under the Chart Luxembourg facility as of March 31, 2019 . Cryo Diffusion S.A.S., a wholly-owned subsidiary of the Company, maintains a secured credit facility with a capacity of up to 1.1 million euros (equivalent to $1.4 ), which can be utilized for working capital purposes. At March 31, 2019, there was 1.1 euros (equivalent to $1.2 ) outstanding bearing an average interest rate at 1.49% . Letters of Credit Chart Energy & Chemicals, Inc. (“Chart E&C”), a wholly-owned subsidiary of the Company, had $1.0 in deposits in a bank outside of the SSRCF to secure letters of credit. The deposits are treated as restricted cash and restricted cash equivalents in the unaudited condensed consolidated balance sheets ( $1.0 in other assets at March 31, 2019 and $1.0 in other assets at December 31, 2018 ). Fair Value Disclosures The fair value of the 2024 Notes was approximately 163% and 124% of their par value as of March 31, 2019 and December 31, 2018, respectively. The 2024 Notes are actively quoted instruments and, accordingly, the fair value of the 2024 Notes was determined using Level 1 inputs. |
Product Warranties
Product Warranties | 3 Months Ended |
Mar. 31, 2019 | |
Product Warranties Disclosures [Abstract] | |
Product Warranties | Product Warranties We provide product warranties with varying terms and durations for the majority of our products. We estimate our warranty reserve by considering historical and projected warranty claims, historical and projected cost-per-claim, and knowledge of specific product issues that are outside our typical experience. We record warranty expense in cost of sales in the unaudited condensed consolidated statements of income and comprehensive income. Product warranty claims not expected to occur within one year are included as part of other long-term liabilities in the unaudited condensed consolidated balance sheets. The following table represents changes in our consolidated warranty reserve: Balance at December 31, 2018 $ 8.9 Issued – warranty expense 1.1 Warranty usage (1.0 ) Balance at March 31, 2019 $ 9.0 During the second quarter of 2018, we established a reserve related to a recall notice issued for certain aluminum cryobiological tanks in our D&S West segment manufactured in our New Prague, Minnesota facility during a limited time period. See Note 14, “Commitments and Contingencies” for additional information. |
Business Combinations
Business Combinations | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations VRV Acquisition On November 15, 2018, Chart completed the acquisition of VRV pursuant to the terms of the Amended and Restated Share Purchase Agreement (the “Amendment”) with the original parties as well as VRV that replaced in full the original Purchase Agreement. Immediately thereafter, we assigned all of our rights and obligations under the Amendment to VRV Holdings S.r.l. (“Holdings”), a newly formed Italian subsidiary of Chart. The Amendment provided a revised transaction structure pursuant to which Holdings acquired VRV Technoservice S.r.l. (“VRV Technoservice”), a newly formed Italian company wholly owned by VRV (the “Acquisition”). Prior to the Acquisition, as contemplated in the Amendment, VRV contributed substantially all of its business to VRV Technoservice. VRV Technoservice changed its name to VRV S.r.l. following the Acquisition. The Acquisition purchase price was 191.1 million euros (equivalent to $216.1 ), net of cash assumed of 1.3 million euros (equivalent to $1.4 ), is inclusive of the base purchase price of 125.0 million euros (equivalent to $141.3 ) paid in cash, assumed indebtedness of VRV, which was paid off immediately at closing or shortly thereafter, of 63.7 million euros (equivalent to $72.0 ), and net working capital and other agreed-upon purchase price adjustments finalized during the first quarter of 2019 of 2.5 million euros (equivalent to $2.8 ) which was settled early in the second quarter of 2019. Additional indebtedness of VRV of 4.4 million euros (equivalent to $4.9 ) was assumed at the acquisition date and paid off during the first and second quarters of 2019. All U.S. dollar equivalent dollar amounts are based on the exchange rate as of the acquisition date. We funded the Acquisition, including the subsequent payoff of assumed indebtedness, with borrowings of 140.0 million euros (equivalent to $160.3 ) from our senior secured revolving credit facility and the remainder with cash on hand. VRV, which has operations in Italy, France and India, is a diversified multinational corporation with highly automated, purpose-built facilities for the design and manufacture of pressure equipment serving the cryogenic and energy & petrochemical end markets. VRV’s results are included in our E&C and D&S East segments from the date of Acquisition. As defined in our significant accounting policy for business combinations in Note 2, of our Annual Report on Form 10-K for the year ended December 31, 2018, we preliminarily allocated the Acquisition consideration to tangible and identifiable intangible assets acquired and liabilities assumed based on their preliminary estimated fair values as of the Acquisition date. The preliminary fair value of the acquired tangible and identifiable intangible assets were determined based on inputs that are unobservable and significant to the overall fair value measurement. It is also based on estimates and assumptions made by management at the time of the Acquisition. As such, this was classified as Level 3 fair value hierarchy measurements and disclosures. The Acquisition consideration allocation below is preliminary, pending completion of the fair value analyses of acquired assets and liabilities as well as certain other analyses. Given the acquisition closed late in the fourth quarter of 2018, we expect significant adjustments in the purchase price allocation. Those areas that are subject to change, include the following: • researching and analyzing the differences between Chart accounting policies and those used by VRV, • finalizing the valuation of working capital accounts, • completing our review of VRV’s revenue recognition policies, including assessing estimates utilized for projects using the percentage of completion method, • gathering sufficient information to estimate the fair value of acquired intangible assets, including assessing projections and other assumptions used in our valuation models, and determining whether the intangible assets identified below represent a complete listing of acquired intangible assets, and • evaluating income tax accounting considerations, including income tax effects of the above matters. Where we are still in process of completing our analysis, we used our best estimate based on currently available information. The preliminary estimated useful lives of identifiable finite-lived intangible assets range from 2 to 12 years . The excess of the purchase price over the estimated fair values is assigned to goodwill. The preliminary estimated goodwill was established due to benefits including the combination of strong engineering and manufacturing cultures which will continue to further develop full service solutions for our worldwide customer base, as well as the benefits derived from the anticipated synergies of VRV integrating with Chart’s E&C and D&S East segments. Goodwill recorded for the VRV acquisition is not expected to be deductible for tax purposes. As additional information becomes available, we will further revise the preliminary Acquisition consideration allocation during the remainder of the measurement period, which shall not exceed twelve months from the closing of the Acquisition, and we believe such revisions or changes may be material. The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed in the VRV acquisition as of the acquisition date: March 31, 2019 Adjustments As Previously Reported December 31, 2018 Net assets acquired: Identifiable intangible assets $ 66.6 $ — $ 66.6 Property, plant and equipment 70.5 — 70.5 Goodwill 81.1 17.9 63.2 Other net assets 2.8 (15.1 ) 17.9 Debt (4.9 ) — (4.9 ) Net assets acquired $ 216.1 $ 2.8 $ 213.3 During the first quarter of 2019, net assets acquired included adjustments to other net assets and goodwill based on U.S. GAAP purchase accounting primarily due to inventory valuation and balance sheet accounts related to revenue recognition. Net assets acquired, including goodwill, was also adjusted to reflect the net working capital and other agreed-upon purchase price adjustments of $2.8 negotiated during the first quarter of 2019. Information regarding preliminary identifiable intangible assets acquired in the VRV acquisition is presented below: Weighted-average Estimated Useful Life Preliminary Estimated Asset Fair Value Finite-lived intangible assets: Customer relationships 12.0 years $ 28.1 Unpatented technology 12.0 years 15.9 Other identifiable intangible assets (1) 4.0 years 11.8 Trademarks and trade names 14.0 years 10.8 Total finite-lived intangible assets acquired 9.0 years $ 66.6 _______________ (1) Other identifiable intangible assets is included in “Patents and other” in Note 6 , “ Goodwill and Intangible Assets ”. The following unaudited supplemental pro forma sales are based on our historical consolidated financial statements and VRV’s historical consolidated financial statements as adjusted to give effect to the November 15, 2018 acquisition of VRV. The unaudited supplemental pro forma sales information for the periods presented gives effect to the Acquisition as if it had occurred on January 1, 2018. The unaudited supplemental pro forma sales for the three months ended March 31, 2018 for Chart Industries including VRV would have been approximately $313.5 . It is impracticable to disclose the pro forma net income and pro forma net income per share information because of significant differences between Chart accounting policies following U.S. GAAP and those followed by VRV. The unaudited pro forma sales information is presented for informational purposes only and is not necessarily indicative of the results of operations that actually would have resulted had the Acquisition been in effect at the beginning of the period presented. In addition, the unaudited pro forma sales results are not intended to be a projection of future results and do not reflect any operating efficiencies or cost savings that might be achievable. Skaff Acquisition On January 2, 2018, we acquired 100% of the equity interests of Skaff Cryogenics and Cryo-Lease, LLC (together “Skaff”) for an approximate purchase price of $12.5 , net of cash acquired. Skaff provides quality repair service and re-manufacturing of cryogenic and liquefied natural gas storage tanks and trailers and also maintains a portfolio of cryogenic storage equipment that is leased to customers for temporary and permanent needs. Skaff is headquartered in Brentwood, New Hampshire and provides services and equipment to customers in North America. Skaff’s results are included in the D&S West operating segment. During the three months ended March 31, 2019, the Skaff purchase price allocation was finalized, which resulted in an adjustment to the opening balance sheet increasing long-term deferred tax liabilities and goodwill each by $0.8 . Additional information related to the Skaff acquisition has not been presented because the impact on our consolidated results of operations and financial position is not material. Contingent Consideration The estimated fair value of contingent consideration relating to the 2015 Thermax acquisition of our D&S West segment, was $1.8 at the date of acquisition and was valued according to a discounted cash flow approach, which includes assumptions regarding the probability of achieving certain earnings targets and a discount rate applied to the potential payments. Potential payments may be paid before July 1, 2019 based on the attainment of certain earnings targets. The potential payments related to Thermax contingent consideration are between $0.0 and $11.3 . We expect any payments to be insignificant. Valuations are performed using Level 3 inputs and are evaluated on a quarterly basis based on forecasted sales and earnings targets. Contingent consideration liabilities are classified as other current liabilities and other long-term liabilities in the unaudited condensed consolidated balance sheets. Changes in fair value of contingent consideration, including accretion, are recorded as selling, general, and administrative expenses in the unaudited condensed consolidated statements of income and comprehensive income. The fair value of contingent consideration liabilities was insignificant at both March 31, 2019 and December 31, 2018 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following tables represent changes in accumulated other comprehensive (loss) income by component: Foreign currency translation adjustments Pension liability adjustments, net of taxes Accumulated other comprehensive loss Balance at December 31, 2018 $ (17.5 ) $ (12.4 ) $ (29.9 ) Other comprehensive loss (4.9 ) — (4.9 ) Amounts reclassified from accumulated other comprehensive loss, net of income taxes — 0.3 0.3 Net current-period other comprehensive (loss) income, net of taxes (4.9 ) 0.3 (4.6 ) Balance at March 31, 2019 $ (22.4 ) $ (12.1 ) $ (34.5 ) Foreign currency translation adjustments Pension liability adjustments, net of taxes Accumulated other comprehensive (loss) income Balance at December 31, 2017 $ 2.2 $ (10.3 ) $ (8.1 ) Other comprehensive income 12.1 — 12.1 Amounts reclassified from accumulated other comprehensive (loss) income, net of income taxes — 0.3 0.3 Net current-period other comprehensive income, net of taxes 12.1 0.3 12.4 Balance at March 31, 2018 $ 14.3 $ (10.0 ) $ 4.3 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table presents calculations of net earnings per share of common stock: Three Months Ended March 31, 2019 2018 Income from continuing operations $ 0.9 $ 4.2 Income from discontinued operations, net of tax — 1.6 Net income attributable to Chart Industries, Inc. $ 0.9 $ 5.8 Earnings per common share – basic: Income from continuing operations $ 0.03 $ 0.14 Income from discontinued operations — 0.05 Net income attributable to Chart Industries, Inc. $ 0.03 $ 0.19 Earnings per common share – diluted: Income from continuing operations $ 0.03 $ 0.13 Income from discontinued operations — 0.05 Net income attributable to Chart Industries, Inc. $ 0.03 $ 0.18 Weighted average number of common shares outstanding – basic 31.57 30.91 Incremental shares issuable upon assumed conversion and exercise of share-based awards 0.55 0.75 Incremental shares issuable due to dilutive effect of convertible notes 1.20 — Incremental shares issuable due to dilutive effect of warrants 0.49 — Weighted average number of common shares outstanding – diluted 33.81 31.66 Diluted earnings per share does not reflect the following potential common shares as the effect would be anti-dilutive: Three Months Ended March 31, 2019 2018 Share-based awards 0.14 0.33 Convertible note hedge (1) 1.20 — Warrants — 5.18 Total anti-dilutive securities 1.34 5.51 _______________ (1) The convertible note hedge offsets any dilution upon actual conversion of the 2024 Notes up to a common stock price of $71.775 per share. For further information, refer to Note 7 , “ Debt and Credit Arrangements .” |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax (benefit) expense from continuing operations of $(2.0) and $1.6 for the three months ended March 31, 2019 and 2018 , respectively, represents taxes on both U.S. and foreign earnings at a combined effective income tax rate of 200.0% and 25.4% , respectively. The effective income tax rate of 200% for the three months ended March 31, 2019 differed from the U.S. federal statutory rate of 21% primarily due to excess tax benefits associated with stock compensation and the effect of income earned by certain of our foreign entities being taxed at higher rates than the U.S. federal statutory rate, partially offset by losses incurred by certain of our Chinese operations for which no benefit was recorded. The effective income tax rate of 25.4% for the three months ended March 31, 2018 , differed from the U.S. federal statutory rate of 21% primarily due to the effect of income earned by certain of the Company’s foreign entities being taxed at higher rates than the U.S. federal statutory rate as well as losses incurred by certain of our Chinese operations for which no benefit was recorded. As of March 31, 2019 and December 31, 2018 , we had a liability for gross unrecognized tax benefits of $2.4 and $2.3 , respectively. This amount includes $1.8 and $0.1 of unrecognized tax benefits as of March 31, 2019 and December 31, 2018 , respectively, which, if ultimately recognized, would reduce our annual effective income tax rate. We recognize interest and penalties related to uncertain tax positions in income tax expense. These amounts were not significant for the periods presented. |
Share-based Compensation
Share-based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Share-based Compensation [Abstract] | |
Share-based Compensation | Share-based Compensation During the three months ended March 31, 2019 , we granted 0.10 stock options and 0.07 restricted stock units, and 0.03 performance units. The total fair value of awards granted to employees during the three months ended March 31, 2019 was $9.8 . In addition, our non-employee directors received stock awards with a total fair value of $0.1 . During the three months ended March 31, 2019 , participants in our stock option plans exercised options to purchase 0.25 shares of our common stock, while 0.01 stock options were forfeited. Stock options generally have a four -year graded vesting period. Restricted stock and restricted stock units generally vest ratably over a three -year period. Performance units generally vest at the end of a three -year performance period based on the attainment of certain pre-determined performance condition targets. During the three months ended March 31, 2019 , 0.11 restricted stock units and 0.02 performance units vested while 0.01 restricted stock units were forfeited. Share-based compensation expense was $2.4 and $2.9 for the three months ended March 31, 2019 and 2018 , respectively. Share-based compensation expense is included in selling, general, and administrative expenses in the unaudited condensed consolidated statements of income and comprehensive income. As of March 31, 2019 , total share-based compensation of $14.6 is expected to be recognized over the weighted-average period of approximately 2.6 years . |
Commitment and Contingencies
Commitment and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Aluminum Cryobiological Tank Recall In April 2018, we received several customer inquiries regarding the performance of certain aluminum cryobiological tanks (in the D&S West segment) manufactured at our New Prague, Minnesota facility. An investigation determined that certain aluminum tanks manufactured at the facility during a limited certain period should be repaired or replaced. As such, on April 23, 2018, we issued a recall notice for the impacted product lines. Our D&S West segment recorded an expense of $4.0 to cost of goods sold during the second quarter of 2018 related to the estimated costs of the recall. The remaining liability is included in other current liabilities in the March 31, 2019 unaudited condensed consolidated balance sheet. The following table represents the establishment of and changes in the aluminum cryobiological tank recall reserve: Recall reserve - established April 2018 $ 3.8 Reserve usage (3.9 ) Change in estimate - expense 0.2 Balance at March 31, 2019 $ 0.1 Stainless Steel Cryobiological Tank Legal Proceedings During the second quarter of 2018, Chart was named in lawsuits (including a class action lawsuit filed in the U.S. District Court for the Northern District of California) filed against Chart and other defendants with respect to the alleged failure of a stainless steel cryobiological storage tank (model MVE 808AF-GB) at the Pacific Fertility Center in San Francisco, California. We are evaluating the merits of such claims in light of the limited information available to date regarding use, maintenance and operation of the tank which has been out of our custody for the past six years when it was sold to the Pacific Fertility Center through an independent distributor. Accordingly, an accrual related to any damages that may result from the lawsuits has not been recorded because a potential loss is not currently probable or estimable. We have asserted various defenses against the claims in the lawsuits, including a defense that since manufacture, we were not in any way involved with the installation, ongoing maintenance or monitoring of the tank or related fertility center cryogenic systems at any time since the initial delivery of the tank. Aluminum Cryobiological Tank Legal Proceeding Chart has been named in purported class action lawsuits filed in the Ontario Superior Court of Justice against the Company and other defendants with respect to the alleged failure of an aluminum cryobiological storage tank (model FNL XC 47/11-6 W/11) at The Toronto Institute for Reproductive Medicine in Etobicoke, Ontario. We have confirmed that the tank in question was part of the aluminum cryobiological tank recall commenced on April 23, 2018. We have asserted various defenses against the claims in the lawsuits and are in the early stages of litigation. Accordingly, an accrual related to any damages that may result from the lawsuit has not been recorded because a potential loss is not currently probable or estimable. |
Restructuring Activities
Restructuring Activities | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Activities | Restructuring Activities During the first quarter of 2019, we implemented certain cost reduction or avoidance actions, including facility consolidations and a streamlining of the commercial activities surrounding our Lifecycle business in E&C, geographic realignment of our manufacturing capacity in D&S East, as well as departmental restructuring, including headcount reductions. These actions resulted in a total charge of $7.4 during the quarter consisting of employee severance costs, disposals of property, plant and equipment and other costs. We expect to incur restructuring charges with E&C and D&S East of $1.5 and $0.4 , respectively, during 2019 for severance and facility exit related activities that are recognized when the specific costs are incurred. We expect this restructuring will be substantially completed by the end of the third quarter of 2019. Restructuring charges in the first quarter of 2018, were related to the timing of recognizing certain severance and disposal related activities associated with a 2017 restructuring plan which was substantially completed at the end of 2017. The following table is a summary of the severance and other restructuring costs, which included employee-related costs, facility rent and exit costs, relocation, recruiting, travel and other, for the three months ended March 31, 2019 and 2018 : Three Months Ended March 31, 2019 2018 Severance: Cost of sales $ 0.5 $ — Selling, general, and administrative expenses 1.0 0.5 Total severance costs 1.5 0.5 Other restructuring: Cost of sales 5.0 0.3 Selling, general, and administrative expenses 0.9 0.1 Total other restructuring costs 5.9 0.4 Total restructuring costs $ 7.4 $ 0.9 The following tables summarize our restructuring activities for the three months ended March 31, 2019 and 2018 : Three Months Ended March 31, 2019 Energy & Chemicals D&S West D&S East Corporate Consolidated Balance as of December 31, 2018 $ — $ — $ 0.8 $ 0.1 $ 0.9 Restructuring costs 4.5 0.3 2.4 0.2 7.4 Property, plant and equipment impairment and disposals (3.2 ) — (1.7 ) — (4.9 ) Cash payments and other (0.6 ) — (0.5 ) (0.2 ) (1.3 ) Balance as of March 31, 2019 $ 0.7 $ 0.3 $ 0.8 $ 0.1 $ 1.9 Three Months Ended March 31, 2018 Energy & Chemicals D&S West D&S East Corporate Consolidated Balance as of December 31, 2017 $ 0.2 $ 1.2 $ 0.2 $ 1.1 $ 2.7 Restructuring costs 0.2 — 0.2 0.5 0.9 Cash payments (0.2 ) (1.2 ) (0.4 ) (0.2 ) (2.0 ) Balance as of March 31, 2018 $ 0.2 $ — $ — $ 1.4 $ 1.6 |
Basis of Preparation (Policies)
Basis of Preparation (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation: The unaudited condensed consolidated financial statements include the accounts of Chart Industries, Inc. and its subsidiaries. Intercompany accounts and transactions are eliminated in consolidation. |
Use of Estimates | Use of Estimates: The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements. These estimates may also affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and assumptions. |
Recently Issued and Adopted Accounting Standards | Recently Issued Accounting Standards: In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-15, “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” This ASU clarifies the accounting treatment for implementation costs for cloud computing arrangements (hosting arrangements) that is a service contract. This guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within that fiscal year. Early adoption is permitted. We are currently assessing the effect that this ASU will have on our financial position, results of operations, and disclosures. In August 2018, the FASB issued ASU 2018-14, “Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans.” This ASU adds, modifies and clarifies several disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. This guidance is effective for fiscal years ending after December 15, 2020. Early adoption is permitted. We are currently assessing the effect that this ASU will have on our financial position, results of operations, and disclosures. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” This ASU adds, modifies and removes several disclosure requirements relative to the three levels of inputs used to measure fair value in accordance with Topic 820, “Fair Value Measurement.” This guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within that fiscal year. Early adoption is permitted. We are currently assessing the effect that this ASU will have on our financial position, results of operations, and disclosures. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” and subsequently issued additional guidance that modified ASU 2016-13. ASU 2016-13 and the subsequent modifications are identified as Accounting Standards Codification (“ASC”) 326.” The standard requires an entity to change its accounting approach in determining impairment of certain financial instruments, including trade receivables, from an “incurred loss” to a “current expected credit loss” model. The standard will be effective for fiscal years beginning after December 15, 2019, including interim periods within such fiscal years. Early adoption is permitted. We are currently assessing the effect that ASC 326 will have on our financial position, results of operations, and disclosures. Recently Adopted Accounting Standards: In July 2018, the FASB issued ASU 2018-09, “Codification Improvements.” This ASU makes amendments to multiple codification Topics. The transition and effective date guidance are based on the facts and circumstances of each amendment. Some of the amendments in this ASU do not require transition guidance and were effective upon issuance of this ASU. However, many of the amendments in this ASU had transition guidance with effective dates for annual periods beginning after December 15, 2018. The adoption of this guidance did not have a material impact on our financial position, results of operations or disclosures. In February 2018, the FASB issued ASU 2018-02, “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” The FASB issued the update to provide amended guidance to “allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act.” Additionally, under the new guidance an entity will be required to provide certain disclosures regarding stranded tax effects. The guidance was effective for fiscal years beginning after December 15, 2018, including interim periods within those years. The Company adopted this guidance effective January 1, 2019. The adoption of this guidance did not impact our financial position, results of operations or disclosures. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” The ASU expands and enhances hedge accounting to become more closely aligned with an entity’s risk management activities through hedging strategies. The ASU provides changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results in the financial statements and creates more transparency and better understandability around how economic results are presented in the financial statements. In addition, the new guidance makes certain targeted improvements to ease the application of accounting guidance relative to hedge effectiveness. This guidance was applied prospectively for annual periods and interim periods beginning after December 15, 2018. We adopted this guidance effective January 1, 2019. The adoption of this guidance did not impact our financial position, results of operations or disclosures. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) and other subsequent amendments collectively identified as ASC 842, related to leases to increase transparency and comparability among organizations by requiring the recognition of right-of-use (“ROU”) assets and lease liabilities on the balance sheet. Effective January 1, 2019, (“the Commencement Date”) the Company adopted the new lease accounting standard using the modified retrospective transition option of applying the new standard at the adoption date for all leases with terms greater than 12 months. The adoption of the new standard resulted in the recording of ROU assets, primarily consisting of leased facilities and equipment and lease liabilities of $34.8 as of the Commencement Date. The adoption did not have a material impact on our unaudited condensed consolidated statement of income and comprehensive income or cash flows related to existing leases for the three months ended March 31, 2019. As a result, there was no cumulative-effect adjustment. We elected certain practical expedients and as such did not reassess the following: 1) whether any expired or existing contracts are or contain leases, 2) lease classification for any expired or existing leases, 3) initial direct costs for any expired or existing leases and 4) whether existing or expired land easements are or contain leases. However, we will evaluate new or modified land easements under the new guidance after the Commencement Date. We also elected the practical expedient to not separate lease and non-lease components. In addition, we implemented internal controls and key system functionality to enable the preparation of financial information on adoption. At lease inception, we determine if an arrangement is a lease and if it includes options to extend or terminate the lease if it is reasonably certain that the options will be exercised. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Operating leases are recognized as ROU assets and are included within property, plant and equipment, net and lease liabilities are included in other current liabilities and other liabilities in our unaudited condensed consolidated balance sheet as of the Commencement Date and at March 31, 2019. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized on the Commencement Date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available on the Commencement Date in determining the present value of lease payments. As of March 31, 2019, ROU assets and lease liabilities were $29.8 and $33.1 ( $7.1 of which was current), respectively. The weighted-average remaining term for lease contracts was 7.2 years at March 31, 2019, with maturity dates ranging from May 2019 to August 2027. The weighted-average discount rate was 4.7% at March 31, 2019. Certain leases contain rent escalation clauses and lease concessions that require additional rental payments in the later years of the term. Rent expense for these types of leases is recognized on a straight-line basis over the minimum lease term. We incurred $2.0 and $2.5 of rental expense under operating leases for the three months ended March 31, 2019 and March 31, 2018, respectively. Adjustments for straight-line rental expense for the respective periods was not material and as such, the majority of expense recognized was reflected in cash used in operating activities for the respective periods. This expense consisted primarily of payments for base rent on building and equipment leases. Payments related to short-term lease costs and taxes and variable service charges on leased properties were immaterial. In addition, we have the right, but no obligation, to renew certain leases for various renewal terms. The following table summarizes future minimum lease payments for non-cancelable operating leases as of March 31, 2019 and December 31, 2018: March 31, December 31, 2019 (1) $ 5.8 $ 7.9 2020 6.3 6.9 2021 5.6 5.7 2022 5.3 5.3 2023 4.6 4.6 Thereafter (2) 9.1 9.2 Total future minimum lease payments $ 36.7 $ 39.6 _______________ (1) Amount as of March 31, 2019 represents lease payments for the remaining nine months, April 2019 through December 2019. (2) As of March 31, 2019, future minimum lease payments for non-cancelable operating leases for period subsequent to 2023 relate to 11 leased facilities. |
Basis of Preparation (Tables)
Basis of Preparation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Operating Lease Future Minimum Lease Payments | The following table summarizes future minimum lease payments for non-cancelable operating leases as of March 31, 2019 and December 31, 2018: March 31, December 31, 2019 (1) $ 5.8 $ 7.9 2020 6.3 6.9 2021 5.6 5.7 2022 5.3 5.3 2023 4.6 4.6 Thereafter (2) 9.1 9.2 Total future minimum lease payments $ 36.7 $ 39.6 _______________ (1) Amount as of March 31, 2019 represents lease payments for the remaining nine months, April 2019 through December 2019. (2) As of March 31, 2019, future minimum lease payments for non-cancelable operating leases for period subsequent to 2023 relate to 11 leased facilities. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summarized Financial Information of Discontinued Operations | The following table represents income from discontinued operations, net of tax: Three Months Ended March 31, 2018 Sales $ 35.6 Cost of sales 25.4 Selling, general and administrative expenses 7.5 Amortization expense 0.6 Operating income (1) 2.1 Other income, net 0.2 Income before income taxes 2.3 Income tax expense 0.7 Income from discontinued operations, net of tax $ 1.6 _______________ (1) Includes depreciation expense of $0.4 for the three months ended March 31, 2018 . |
Reportable Segments (Tables)
Reportable Segments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Reportable and Product Sales Information Segments | Three Months Ended March 31, 2018 Energy & Chemicals D&S West D&S East Intersegment Eliminations Corporate Consolidated Sales to external customers $ 89.9 $ 100.6 $ 55.1 $ (1.5 ) $ — $ 244.1 Depreciation and amortization expense 6.6 2.9 2.9 — 0.3 12.7 Operating income (loss) (2) (3) 2.8 22.2 3.7 (0.4 ) (13.5 ) 14.8 Capital expenditures 2.0 1.1 1.9 — 1.2 6.2 _______________ (1) Includes sales and operating loss for VRV S.r.l and its subsidiaries (“VRV”), included in the E&C and D&S East segment results since the acquisition date, November 15, 2018 as follows: • Sales were $22.1 (E&C: $8.6 , D&S East: $13.5 ) for the three months ended March 31, 2019 . • Operating loss was $(8.1) (E&C: $(2.8) , D&S East: $(5.3) ) for the three months ended March 31, 2019 ., which includes VRV inventory step-up of $1.7 . (2) Includes restructuring costs of $7.4 and $0.9 for the three months ended March 31, 2019 and 2018 respectively. See Note 15, Restructuring Activities. (3) Includes transaction-related costs of $0.9 and $1.3 for the three months ended March 31, 2019 and 2018 , respectively. Transaction-related costs include costs associated with business development and other one-time transactions. Product Sales Information Three Months Ended March 31, 2019 Energy & Chemicals D&S West D&S East Intersegment Eliminations Consolidated Natural gas processing (including petrochemical) applications $ 70.3 $ — $ — $ — $ 70.3 Liquefied natural gas (LNG) applications 14.6 22.1 12.1 — 48.8 Industrial gas applications 7.1 — — — 7.1 HVAC, power and refining applications 13.6 — — — 13.6 Bulk industrial gas applications — 37.8 40.2 (0.3 ) 77.7 Packaged gas industrial applications — 36.1 16.4 (1.0 ) 51.5 Cryobiological storage — 22.0 — (1.7 ) 20.3 Total $ 105.6 $ 118.0 $ 68.7 $ (3.0 ) $ 289.3 Three Months Ended March 31, 2018 Energy & Chemicals D&S West D&S East Intersegment Eliminations Consolidated Natural gas processing (including petrochemical) applications $ 58.7 $ — $ — $ — $ 58.7 Liquefied natural gas (LNG) applications 9.0 13.0 20.4 (0.2 ) 42.2 Industrial gas applications 3.4 — — — 3.4 HVAC, power and refining applications 18.8 — — — 18.8 Bulk industrial gas applications — 28.6 24.8 (0.4 ) 53.0 Packaged gas industrial applications — 39.9 9.9 (0.9 ) 48.9 Cryobiological storage — 19.1 — — 19.1 Total $ 89.9 $ 100.6 $ 55.1 $ (1.5 ) $ 244.1 Total Assets March 31, December 31, Energy & Chemicals $ 909.6 $ 889.2 D&S West 442.8 420.3 D&S East 495.6 496.1 Corporate 65.3 92.1 Total $ 1,913.3 $ 1,897.7 |
Segment Assets | Total Assets March 31, December 31, Energy & Chemicals $ 909.6 $ 889.2 D&S West 442.8 420.3 D&S East 495.6 496.1 Corporate 65.3 92.1 Total $ 1,913.3 $ 1,897.7 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue by Timing | The following table represents a disaggregation of revenue by timing of revenue along with the reportable segment for each category: Three Months Ended March 31, 2019 Energy & Chemicals D&S West D&S East Intersegment Eliminations Consolidated Point in time $ 74.1 $ 107.4 $ 63.9 $ (3.0 ) $ 242.4 Over time 31.5 10.6 4.8 — 46.9 Total $ 105.6 $ 118.0 $ 68.7 $ (3.0 ) $ 289.3 Three Months Ended March 31, 2018 Energy & Chemicals D&S West D&S East Intersegment Eliminations Consolidated Point in time $ 23.9 $ 91.3 $ 50.5 $ (1.5 ) $ 164.2 Over time 66.0 9.3 4.6 — 79.9 Total $ 89.9 $ 100.6 $ 55.1 $ (1.5 ) $ 244.1 Refer to Note 3 , “ Reportable Segments ,” for a table of revenue disaggregated by product application along with the reportable segment for each category. |
Changes in Contract Assets and Contract Liabilities Balances | The following table represents changes in our contract assets and contract liabilities balances: March 31, 2019 December 31, 2018 Year-to-date Change ($) Year-to-date Change (%) Contract assets Accounts receivable, net of allowances $ 205.2 $ 194.8 10.4 5.3 % Unbilled contract revenue 68.9 54.5 14.4 26.4 % Contract liabilities Customer advances and billings in excess of contract revenue $ 129.5 $ 130.0 $ (0.5 ) (0.4 )% Long-term deferred revenue 1.3 1.4 (0.1 ) (7.1 )% |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Summarized Components of Inventory | The following table summarizes the components of inventory: March 31, December 31, Raw materials and supplies $ 112.5 $ 97.7 Work in process 44.7 53.0 Finished goods 77.5 82.4 Total inventories, net $ 234.7 $ 233.1 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill by Segment | The following table represents the changes in goodwill by segment: Energy & Chemicals D&S West D&S East Consolidated Balance at December 31, 2018 $ 295.8 $ 151.3 $ 73.6 $ 520.7 Foreign currency translation adjustments (0.6 ) — (1.7 ) (2.3 ) Purchase price adjustment (1) 7.7 0.8 10.2 18.7 Balance at March 31, 2019 $ 302.9 $ 152.1 $ 82.1 $ 537.1 Accumulated goodwill impairment loss at March 31, 2019 and December 31, 2018 $ 64.6 $ 82.5 $ — $ 147.1 _______________ (1) For the three months ended March 31, 2019, we made an adjustment to the preliminary purchase price allocation of $17.9 ( $7.7 in E&C and $10.2 in D&S East) for the VRV acquisition and $0.8 for the Skaff acquisition. |
Schedule of Finite-Lived Intangible Assets | The following table displays the gross carrying amount and accumulated amortization for finite-lived intangible assets and indefinite-lived intangible assets (exclusive of goodwill) (1) : March 31, 2019 December 31, 2018 Weighted-average Estimated Useful Life Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Finite-lived intangible assets: Customer relationships 14 years $ 252.3 $ (96.1 ) $ 254.0 $ (92.0 ) Unpatented technology 12 years 38.9 (5.5 ) 39.4 (5.1 ) Land use rights 50 years 12.4 (1.3 ) 12.2 (1.3 ) Trademarks and trade names 14 years 12.9 (1.0 ) 13.5 (1.1 ) Patents and other 7 years 12.8 (1.1 ) 14.0 (1.5 ) Total finite-lived intangible assets 14 years $ 329.3 $ (105.0 ) $ 333.1 $ (101.0 ) Indefinite-lived intangible assets: Trademarks and trade names 98.2 — 98.3 — Total intangible assets $ 427.5 $ (105.0 ) $ 431.4 $ (101.0 ) _______________ (1) Amounts include the impact of foreign currency translation. Fully amortized amounts are written off. |
Schedule of Indefinite-Lived Intangible Assets | The following table displays the gross carrying amount and accumulated amortization for finite-lived intangible assets and indefinite-lived intangible assets (exclusive of goodwill) (1) : March 31, 2019 December 31, 2018 Weighted-average Estimated Useful Life Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Finite-lived intangible assets: Customer relationships 14 years $ 252.3 $ (96.1 ) $ 254.0 $ (92.0 ) Unpatented technology 12 years 38.9 (5.5 ) 39.4 (5.1 ) Land use rights 50 years 12.4 (1.3 ) 12.2 (1.3 ) Trademarks and trade names 14 years 12.9 (1.0 ) 13.5 (1.1 ) Patents and other 7 years 12.8 (1.1 ) 14.0 (1.5 ) Total finite-lived intangible assets 14 years $ 329.3 $ (105.0 ) $ 333.1 $ (101.0 ) Indefinite-lived intangible assets: Trademarks and trade names 98.2 — 98.3 — Total intangible assets $ 427.5 $ (105.0 ) $ 431.4 $ (101.0 ) _______________ (1) Amounts include the impact of foreign currency translation. Fully amortized amounts are written off. |
Schedule of Estimated Future Amortization | We estimate amortization expense to be recognized during the next five years as follows: For the Year Ending December 31, 2019 $ 21.0 2020 26.8 2021 20.2 2022 19.3 2023 19.2 |
Schedule of Government Grants | China Government Grants are presented in our unaudited condensed consolidated balance sheets as follows: March 31, December 31, Current $ 0.5 $ 0.5 Long-term 7.9 7.7 Total China Government Grants $ 8.4 $ 8.2 |
Debt and Credit Arrangements (T
Debt and Credit Arrangements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Instrument | |
Summary of Outstanding Borrowings | The following table represents the components of our borrowings: March 31, December 31, Convertible notes due November 2024: Principal amount $ 258.8 $ 258.8 Unamortized discount (48.6 ) (50.4 ) Unamortized debt issuance costs (4.3 ) (4.5 ) Convertible notes due November 2024, net of unamortized discount and debt issuance costs 205.9 203.9 Senior secured revolving credit facility due November 2022 318.0 329.3 Foreign facilities 8.9 11.2 Total debt, net of unamortized discount and debt issuance costs 532.8 544.4 Less: current maturities (1) (214.8 ) (11.2 ) Long-term debt $ 318.0 $ 533.2 _______________ (1) Includes $205.9 of convertible notes due 2024, net of unamortized discount and debt issuance costs. |
Convertible Notes, due 2024 | |
Debt Instrument | |
Schedule of Interest Accretion | The following table summarizes interest accretion of the 2024 Notes discount, 1.0% contractual interest coupon and financing costs amortization associated with the 2024 Notes: Three Months Ended March 31, 2019 2018 2024 Notes, interest accretion of convertible notes discount $ 1.8 $ 1.7 2024 Notes, 1.0% contractual interest coupon 0.6 0.6 2024 Notes, total interest expense $ 2.4 $ 2.3 2024 Notes, financing costs amortization $ 0.2 $ 0.2 |
Convertible Notes, Due 2018 | |
Debt Instrument | |
Schedule of Interest Accretion | The following table summarizes interest accretion of the 2018 Notes discount, 2.00% contractual interest coupon, and financing costs amortization associated with the 2018 Notes: Three Months Ended March 31, 2018 2018 Notes, interest accretion of convertible notes discount $ 0.8 2018 Notes, 2.0% contractual interest coupon 0.6 2018 Notes, total interest expense $ 1.4 |
Product Warranties (Tables)
Product Warranties (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Product Warranties Disclosures [Abstract] | |
Rollforward of Consolidated Warranty Reserve | The following table represents changes in our consolidated warranty reserve: Balance at December 31, 2018 $ 8.9 Issued – warranty expense 1.1 Warranty usage (1.0 ) Balance at March 31, 2019 $ 9.0 The following table represents the establishment of and changes in the aluminum cryobiological tank recall reserve: Recall reserve - established April 2018 $ 3.8 Reserve usage (3.9 ) Change in estimate - expense 0.2 Balance at March 31, 2019 $ 0.1 |
Business Combinations (Tables)
Business Combinations (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired In Business Combination | The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed in the VRV acquisition as of the acquisition date: March 31, 2019 Adjustments As Previously Reported December 31, 2018 Net assets acquired: Identifiable intangible assets $ 66.6 $ — $ 66.6 Property, plant and equipment 70.5 — 70.5 Goodwill 81.1 17.9 63.2 Other net assets 2.8 (15.1 ) 17.9 Debt (4.9 ) — (4.9 ) Net assets acquired $ 216.1 $ 2.8 $ 213.3 |
Identifiable Intangible Assets Acquired | Information regarding preliminary identifiable intangible assets acquired in the VRV acquisition is presented below: Weighted-average Estimated Useful Life Preliminary Estimated Asset Fair Value Finite-lived intangible assets: Customer relationships 12.0 years $ 28.1 Unpatented technology 12.0 years 15.9 Other identifiable intangible assets (1) 4.0 years 11.8 Trademarks and trade names 14.0 years 10.8 Total finite-lived intangible assets acquired 9.0 years $ 66.6 _______________ (1) Other identifiable intangible assets is included in “Patents and other” in Note 6 , “ Goodwill and Intangible Assets ” |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss | The following tables represent changes in accumulated other comprehensive (loss) income by component: Foreign currency translation adjustments Pension liability adjustments, net of taxes Accumulated other comprehensive loss Balance at December 31, 2018 $ (17.5 ) $ (12.4 ) $ (29.9 ) Other comprehensive loss (4.9 ) — (4.9 ) Amounts reclassified from accumulated other comprehensive loss, net of income taxes — 0.3 0.3 Net current-period other comprehensive (loss) income, net of taxes (4.9 ) 0.3 (4.6 ) Balance at March 31, 2019 $ (22.4 ) $ (12.1 ) $ (34.5 ) Foreign currency translation adjustments Pension liability adjustments, net of taxes Accumulated other comprehensive (loss) income Balance at December 31, 2017 $ 2.2 $ (10.3 ) $ (8.1 ) Other comprehensive income 12.1 — 12.1 Amounts reclassified from accumulated other comprehensive (loss) income, net of income taxes — 0.3 0.3 Net current-period other comprehensive income, net of taxes 12.1 0.3 12.4 Balance at March 31, 2018 $ 14.3 $ (10.0 ) $ 4.3 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Calculation of Net Income Per Share | The following table presents calculations of net earnings per share of common stock: Three Months Ended March 31, 2019 2018 Income from continuing operations $ 0.9 $ 4.2 Income from discontinued operations, net of tax — 1.6 Net income attributable to Chart Industries, Inc. $ 0.9 $ 5.8 Earnings per common share – basic: Income from continuing operations $ 0.03 $ 0.14 Income from discontinued operations — 0.05 Net income attributable to Chart Industries, Inc. $ 0.03 $ 0.19 Earnings per common share – diluted: Income from continuing operations $ 0.03 $ 0.13 Income from discontinued operations — 0.05 Net income attributable to Chart Industries, Inc. $ 0.03 $ 0.18 Weighted average number of common shares outstanding – basic 31.57 30.91 Incremental shares issuable upon assumed conversion and exercise of share-based awards 0.55 0.75 Incremental shares issuable due to dilutive effect of convertible notes 1.20 — Incremental shares issuable due to dilutive effect of warrants 0.49 — Weighted average number of common shares outstanding – diluted 33.81 31.66 |
Schedule of Antidilutive Securities | Diluted earnings per share does not reflect the following potential common shares as the effect would be anti-dilutive: Three Months Ended March 31, 2019 2018 Share-based awards 0.14 0.33 Convertible note hedge (1) 1.20 — Warrants — 5.18 Total anti-dilutive securities 1.34 5.51 _______________ (1) The convertible note hedge offsets any dilution upon actual conversion of the 2024 Notes up to a common stock price of $71.775 per share. For further information, refer to Note 7 , “ Debt and Credit Arrangements .” |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Rollforward of Tank Recall Reserve | The following table represents changes in our consolidated warranty reserve: Balance at December 31, 2018 $ 8.9 Issued – warranty expense 1.1 Warranty usage (1.0 ) Balance at March 31, 2019 $ 9.0 The following table represents the establishment of and changes in the aluminum cryobiological tank recall reserve: Recall reserve - established April 2018 $ 3.8 Reserve usage (3.9 ) Change in estimate - expense 0.2 Balance at March 31, 2019 $ 0.1 |
Restructuring Activities (Table
Restructuring Activities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Summary of Severance and Other Restructuring Costs | The following table is a summary of the severance and other restructuring costs, which included employee-related costs, facility rent and exit costs, relocation, recruiting, travel and other, for the three months ended March 31, 2019 and 2018 : Three Months Ended March 31, 2019 2018 Severance: Cost of sales $ 0.5 $ — Selling, general, and administrative expenses 1.0 0.5 Total severance costs 1.5 0.5 Other restructuring: Cost of sales 5.0 0.3 Selling, general, and administrative expenses 0.9 0.1 Total other restructuring costs 5.9 0.4 Total restructuring costs $ 7.4 $ 0.9 |
Rollforward of Restructuring Cost | The following tables summarize our restructuring activities for the three months ended March 31, 2019 and 2018 : Three Months Ended March 31, 2019 Energy & Chemicals D&S West D&S East Corporate Consolidated Balance as of December 31, 2018 $ — $ — $ 0.8 $ 0.1 $ 0.9 Restructuring costs 4.5 0.3 2.4 0.2 7.4 Property, plant and equipment impairment and disposals (3.2 ) — (1.7 ) — (4.9 ) Cash payments and other (0.6 ) — (0.5 ) (0.2 ) (1.3 ) Balance as of March 31, 2019 $ 0.7 $ 0.3 $ 0.8 $ 0.1 $ 1.9 Three Months Ended March 31, 2018 Energy & Chemicals D&S West D&S East Corporate Consolidated Balance as of December 31, 2017 $ 0.2 $ 1.2 $ 0.2 $ 1.1 $ 2.7 Restructuring costs 0.2 — 0.2 0.5 0.9 Cash payments (0.2 ) (1.2 ) (0.4 ) (0.2 ) (2.0 ) Balance as of March 31, 2018 $ 0.2 $ — $ — $ 1.4 $ 1.6 |
Basis of Preparation - Narrativ
Basis of Preparation - Narratives (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019USD ($)facility | Mar. 31, 2018USD ($) | Jan. 01, 2019USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle | |||
Current Fiscal Year End Date | --12-31 | ||
Right of use assets | $ 29.8 | ||
Operating lease liability | 33.1 | ||
Operating lease liability, current | $ 7.1 | ||
Weighted average lease term | 7 years 2 months 12 days | ||
Operating lease weighted average discount rate (percent) | 4.70% | ||
Operating lease rental expense | $ 2 | $ 2.5 | |
Number of leased facililities (facility) | facility | 11 | ||
ASUe 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle | |||
Right of use assets | $ 34.8 | ||
Operating lease liability | $ 34.8 |
Basis of Preparation - Operatin
Basis of Preparation - Operating Lease Future Payments (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Future minimum lease payments | ||
2019 | $ 5.8 | |
2020 | 6.3 | |
2021 | 5.6 | |
2022 | 5.3 | |
2023 | 4.6 | |
Thereafter | 9.1 | |
Total future minimum lease payments | $ 36.7 | |
Future minimum lease payments | ||
2019 | $ 7.9 | |
2020 | 6.9 | |
2021 | 5.7 | |
2022 | 5.3 | |
2023 | 4.6 | |
Thereafter | 9.2 | |
Total future minimum lease payments | $ 39.6 |
Discontinued Operations - Incom
Discontinued Operations - Income from Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Summarized Financial Information of Discontinued Operations | ||
Income from discontinued operations, net of tax | $ 0 | $ 1.6 |
Disposed of by Sale | BioMedical | ||
Summarized Financial Information of Discontinued Operations | ||
Sales | 35.6 | |
Cost of sales | 25.4 | |
Selling, general and administrative expenses | 7.5 | |
Amortization expense | 0.6 | |
Operating income | 2.1 | |
Other income, net | 0.2 | |
Income before income taxes | 2.3 | |
Income tax expense | 0.7 | |
Income from discontinued operations, net of tax | 1.6 | |
Depreciation expense, discontinued operations | $ 0.4 |
Reportable Segments - Segment I
Reportable Segments - Segment Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information | ||
Sales to external customers | $ 289.3 | $ 244.1 |
Depreciation and amortization expense | 16 | 12.7 |
Operating (loss) income | 4.6 | 14.8 |
Payments to Acquire Productive Assets | 5.9 | 6.2 |
Restructuring costs | 7.4 | 0.9 |
Acquisition related costs | 0.9 | 1.3 |
VRV | ||
Segment Reporting Information | ||
Sales of acquiree | 22.1 | |
Operating loss of acquiree | (8.1) | |
Operating Segments | Energy & Chemicals | ||
Segment Reporting Information | ||
Sales to external customers | 105.6 | 89.9 |
Depreciation and amortization expense | 8.6 | 6.6 |
Operating (loss) income | (1.3) | 2.8 |
Payments to Acquire Productive Assets | 3.2 | 2 |
Restructuring costs | 4.5 | 0.2 |
Operating Segments | Energy & Chemicals | VRV | ||
Segment Reporting Information | ||
Sales of acquiree | 8.6 | |
Operating loss of acquiree | (2.8) | |
Operating Segments | D&S West | ||
Segment Reporting Information | ||
Sales to external customers | 118 | 100.6 |
Depreciation and amortization expense | 2.9 | 2.9 |
Operating (loss) income | 25.6 | 22.2 |
Payments to Acquire Productive Assets | 1.2 | 1.1 |
Restructuring costs | 0.3 | 0 |
Operating Segments | D&S East | ||
Segment Reporting Information | ||
Sales to external customers | 68.7 | 55.1 |
Depreciation and amortization expense | 4.2 | 2.9 |
Operating (loss) income | (2.3) | 3.7 |
Payments to Acquire Productive Assets | 1 | 1.9 |
Restructuring costs | 2.4 | 0.2 |
Operating Segments | D&S East | VRV | ||
Segment Reporting Information | ||
Sales of acquiree | 13.5 | |
Operating loss of acquiree | (5.3) | |
Intersegment Eliminations | ||
Segment Reporting Information | ||
Sales to external customers | (3) | (1.5) |
Depreciation and amortization expense | 0 | 0 |
Operating (loss) income | (1.1) | (0.4) |
Payments to Acquire Productive Assets | 0 | 0 |
Corporate | ||
Segment Reporting Information | ||
Sales to external customers | 0 | 0 |
Depreciation and amortization expense | 0.3 | 0.3 |
Operating (loss) income | (16.3) | (13.5) |
Payments to Acquire Productive Assets | 0.5 | 1.2 |
Restructuring costs | 0.2 | $ 0.5 |
Fair Value Adjustment to Inventory | VRV | ||
Segment Reporting Information | ||
Operating loss of acquiree | $ 1.7 |
Reportable Segments - Product S
Reportable Segments - Product Sales Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information | ||
Sales to external customers | $ 289.3 | $ 244.1 |
Natural gas processing (including petrochemical) applications | ||
Segment Reporting Information | ||
Sales to external customers | 70.3 | 58.7 |
Liquefied natural gas (LNG) applications | ||
Segment Reporting Information | ||
Sales to external customers | 48.8 | 42.2 |
Industrial gas applications | ||
Segment Reporting Information | ||
Sales to external customers | 7.1 | 3.4 |
HVAC, power and refining applications | ||
Segment Reporting Information | ||
Sales to external customers | 13.6 | 18.8 |
Bulk industrial gas applications | ||
Segment Reporting Information | ||
Sales to external customers | 77.7 | 53 |
Packaged gas industrial applications | ||
Segment Reporting Information | ||
Sales to external customers | 51.5 | 48.9 |
Cryobiological storage | ||
Segment Reporting Information | ||
Sales to external customers | 20.3 | 19.1 |
Operating Segments | Energy & Chemicals | ||
Segment Reporting Information | ||
Sales to external customers | 105.6 | 89.9 |
Operating Segments | Energy & Chemicals | Natural gas processing (including petrochemical) applications | ||
Segment Reporting Information | ||
Sales to external customers | 70.3 | 58.7 |
Operating Segments | Energy & Chemicals | Liquefied natural gas (LNG) applications | ||
Segment Reporting Information | ||
Sales to external customers | 14.6 | 9 |
Operating Segments | Energy & Chemicals | Industrial gas applications | ||
Segment Reporting Information | ||
Sales to external customers | 7.1 | 3.4 |
Operating Segments | Energy & Chemicals | HVAC, power and refining applications | ||
Segment Reporting Information | ||
Sales to external customers | 13.6 | 18.8 |
Operating Segments | Energy & Chemicals | Bulk industrial gas applications | ||
Segment Reporting Information | ||
Sales to external customers | 0 | 0 |
Operating Segments | Energy & Chemicals | Packaged gas industrial applications | ||
Segment Reporting Information | ||
Sales to external customers | 0 | 0 |
Operating Segments | Energy & Chemicals | Cryobiological storage | ||
Segment Reporting Information | ||
Sales to external customers | 0 | 0 |
Operating Segments | D&S West | ||
Segment Reporting Information | ||
Sales to external customers | 118 | 100.6 |
Operating Segments | D&S West | Natural gas processing (including petrochemical) applications | ||
Segment Reporting Information | ||
Sales to external customers | 0 | 0 |
Operating Segments | D&S West | Liquefied natural gas (LNG) applications | ||
Segment Reporting Information | ||
Sales to external customers | 22.1 | 13 |
Operating Segments | D&S West | Industrial gas applications | ||
Segment Reporting Information | ||
Sales to external customers | 0 | 0 |
Operating Segments | D&S West | HVAC, power and refining applications | ||
Segment Reporting Information | ||
Sales to external customers | 0 | 0 |
Operating Segments | D&S West | Bulk industrial gas applications | ||
Segment Reporting Information | ||
Sales to external customers | 37.8 | 28.6 |
Operating Segments | D&S West | Packaged gas industrial applications | ||
Segment Reporting Information | ||
Sales to external customers | 36.1 | 39.9 |
Operating Segments | D&S West | Cryobiological storage | ||
Segment Reporting Information | ||
Sales to external customers | 22 | 19.1 |
Operating Segments | D&S East | ||
Segment Reporting Information | ||
Sales to external customers | 68.7 | 55.1 |
Operating Segments | D&S East | Natural gas processing (including petrochemical) applications | ||
Segment Reporting Information | ||
Sales to external customers | 0 | 0 |
Operating Segments | D&S East | Liquefied natural gas (LNG) applications | ||
Segment Reporting Information | ||
Sales to external customers | 12.1 | 20.4 |
Operating Segments | D&S East | Industrial gas applications | ||
Segment Reporting Information | ||
Sales to external customers | 0 | 0 |
Operating Segments | D&S East | HVAC, power and refining applications | ||
Segment Reporting Information | ||
Sales to external customers | 0 | 0 |
Operating Segments | D&S East | Bulk industrial gas applications | ||
Segment Reporting Information | ||
Sales to external customers | 40.2 | 24.8 |
Operating Segments | D&S East | Packaged gas industrial applications | ||
Segment Reporting Information | ||
Sales to external customers | 16.4 | 9.9 |
Operating Segments | D&S East | Cryobiological storage | ||
Segment Reporting Information | ||
Sales to external customers | 0 | 0 |
Intersegment Eliminations | ||
Segment Reporting Information | ||
Sales to external customers | (3) | (1.5) |
Intersegment Eliminations | Natural gas processing (including petrochemical) applications | ||
Segment Reporting Information | ||
Sales to external customers | 0 | 0 |
Intersegment Eliminations | Liquefied natural gas (LNG) applications | ||
Segment Reporting Information | ||
Sales to external customers | 0 | (0.2) |
Intersegment Eliminations | Industrial gas applications | ||
Segment Reporting Information | ||
Sales to external customers | 0 | 0 |
Intersegment Eliminations | HVAC, power and refining applications | ||
Segment Reporting Information | ||
Sales to external customers | 0 | 0 |
Intersegment Eliminations | Bulk industrial gas applications | ||
Segment Reporting Information | ||
Sales to external customers | (0.3) | (0.4) |
Intersegment Eliminations | Packaged gas industrial applications | ||
Segment Reporting Information | ||
Sales to external customers | (1) | (0.9) |
Intersegment Eliminations | Cryobiological storage | ||
Segment Reporting Information | ||
Sales to external customers | $ (1.7) | $ 0 |
Reportable Segments - Assets (D
Reportable Segments - Assets (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Assets | $ 1,913.3 | $ 1,897.7 |
Operating Segments | Continuing Operations | Energy & Chemicals | ||
Assets | ||
Assets | 909.6 | 889.2 |
Operating Segments | Continuing Operations | D&S West | ||
Assets | ||
Assets | 442.8 | 420.3 |
Operating Segments | Continuing Operations | D&S East | ||
Assets | ||
Assets | 495.6 | 496.1 |
Corporate | Continuing Operations | ||
Assets | ||
Assets | $ 65.3 | $ 92.1 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue | ||
Sales | $ 289.3 | $ 244.1 |
Point in time | ||
Disaggregation of Revenue | ||
Sales | 242.4 | 164.2 |
Over time | ||
Disaggregation of Revenue | ||
Sales | 46.9 | 79.9 |
Operating Segments | Energy & Chemicals | ||
Disaggregation of Revenue | ||
Sales | 105.6 | 89.9 |
Operating Segments | Energy & Chemicals | Point in time | ||
Disaggregation of Revenue | ||
Sales | 74.1 | 23.9 |
Operating Segments | Energy & Chemicals | Over time | ||
Disaggregation of Revenue | ||
Sales | 31.5 | 66 |
Operating Segments | D&S West | ||
Disaggregation of Revenue | ||
Sales | 118 | 100.6 |
Operating Segments | D&S West | Point in time | ||
Disaggregation of Revenue | ||
Sales | 107.4 | 91.3 |
Operating Segments | D&S West | Over time | ||
Disaggregation of Revenue | ||
Sales | 10.6 | 9.3 |
Operating Segments | D&S East | ||
Disaggregation of Revenue | ||
Sales | 68.7 | 55.1 |
Operating Segments | D&S East | Point in time | ||
Disaggregation of Revenue | ||
Sales | 63.9 | 50.5 |
Operating Segments | D&S East | Over time | ||
Disaggregation of Revenue | ||
Sales | 4.8 | 4.6 |
Intersegment Eliminations | ||
Disaggregation of Revenue | ||
Sales | (3) | (1.5) |
Intersegment Eliminations | Point in time | ||
Disaggregation of Revenue | ||
Sales | (3) | (1.5) |
Intersegment Eliminations | Over time | ||
Disaggregation of Revenue | ||
Sales | $ 0 | $ 0 |
Revenue - Change in Contract As
Revenue - Change in Contract Assets and Liabilities (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Contract assets | |
Beginning accounts receivable, net of allowances | $ 194.8 |
Change in accounts receivable | 10.4 |
Ending accounts receivable, net of allowances | 205.2 |
Beginning unbilled contract revenue | 54.5 |
Change in unbilled contract revenue | 14.4 |
Ending unbilled contract revenue | $ 68.9 |
Change in accounts receivable (as a percentage) | 5.30% |
Change in unbilled contract revenue (as a percentage) | 26.40% |
Contract liabilities | |
Begining balance customer advances and billings in excess of contract revenue | $ 130 |
Change in customer advances and billings in excess of contract revenue | (0.5) |
Ending balance customer advances and billings in excess of contract revenue | 129.5 |
Beginning long-term deferred revenue | 1.4 |
Change in long-term deferred revenue | (0.1) |
Ending long-term deferred revenue | $ 1.3 |
Change in customer advances and billings in excess of contract revenue (as a percentage) | (0.40%) |
Change in long-term deferred revenue (as a percentage) | (7.10%) |
Revenue - Narratives (Details)
Revenue - Narratives (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Contract revenue recognized | $ 37 | $ 38.9 |
Remaining performance obligation | $ 733.8 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 | ||
Disaggregation of Revenue | ||
Revenue, remaining performance obligation | 68.50% | |
Performance obligations expected to be satisfied, expected timing | 1 year |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 112.5 | $ 97.7 |
Work in process | 44.7 | 53 |
Finished goods | 77.5 | 82.4 |
Total inventories, net | 234.7 | 233.1 |
Inventory valuation reserve | $ 8.7 | $ 9 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Goodwill | |
Beginning Balance, Goodwill | $ 520.7 |
Foreign currency translation adjustments | (2.3) |
Goodwill purchase price adjustment | 18.7 |
Ending Balance, Goodwill | 537.1 |
Beginning Balance, Accumulated goodwill impairment loss | 147.1 |
Ending Balance, Accumulated goodwill impairment loss | 147.1 |
VRV | |
Goodwill | |
Beginning Balance, Goodwill | 63.2 |
Goodwill purchase price adjustment | 17.9 |
Ending Balance, Goodwill | 81.1 |
Skaff | |
Goodwill | |
Goodwill purchase price adjustment | 0.8 |
Energy & Chemicals | |
Goodwill | |
Beginning Balance, Goodwill | 295.8 |
Foreign currency translation adjustments | (0.6) |
Ending Balance, Goodwill | 302.9 |
Beginning Balance, Accumulated goodwill impairment loss | 64.6 |
Ending Balance, Accumulated goodwill impairment loss | 64.6 |
Energy & Chemicals | VRV | |
Goodwill | |
Goodwill purchase price adjustment | 7.7 |
D&S West | |
Goodwill | |
Beginning Balance, Goodwill | 151.3 |
Foreign currency translation adjustments | 0 |
Goodwill purchase price adjustment | 0.8 |
Ending Balance, Goodwill | 152.1 |
Beginning Balance, Accumulated goodwill impairment loss | 82.5 |
Ending Balance, Accumulated goodwill impairment loss | 82.5 |
D&S East | |
Goodwill | |
Beginning Balance, Goodwill | 73.6 |
Foreign currency translation adjustments | (1.7) |
Ending Balance, Goodwill | 82.1 |
Beginning Balance, Accumulated goodwill impairment loss | 0 |
Ending Balance, Accumulated goodwill impairment loss | 0 |
D&S East | VRV | |
Goodwill | |
Goodwill purchase price adjustment | $ 10.2 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets (Excluding Goodwill) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Schedule of Finite-lived and Indefinite-lived Intangible Assets | ||
Weighted-average Estimated Useful Life | 14 years | |
Gross Carrying Amount | $ 329.3 | $ 333.1 |
Accumulated Amortization | (105) | (101) |
Total intangible assets | 427.5 | 431.4 |
Trademarks and trade names | ||
Schedule of Finite-lived and Indefinite-lived Intangible Assets | ||
Indefinite-lived intangible assets | $ 98.2 | 98.3 |
Customer relationships | ||
Schedule of Finite-lived and Indefinite-lived Intangible Assets | ||
Weighted-average Estimated Useful Life | 14 years | |
Gross Carrying Amount | $ 252.3 | 254 |
Accumulated Amortization | $ (96.1) | (92) |
Unpatented technology | ||
Schedule of Finite-lived and Indefinite-lived Intangible Assets | ||
Weighted-average Estimated Useful Life | 12 years | |
Gross Carrying Amount | $ 38.9 | 39.4 |
Accumulated Amortization | $ (5.5) | (5.1) |
Land use rights | ||
Schedule of Finite-lived and Indefinite-lived Intangible Assets | ||
Weighted-average Estimated Useful Life | 50 years | |
Gross Carrying Amount | $ 12.4 | 12.2 |
Accumulated Amortization | $ (1.3) | (1.3) |
Trademarks and trade names | ||
Schedule of Finite-lived and Indefinite-lived Intangible Assets | ||
Weighted-average Estimated Useful Life | 14 years | |
Gross Carrying Amount | $ 12.9 | 13.5 |
Accumulated Amortization | $ (1) | (1.1) |
Patents and other | ||
Schedule of Finite-lived and Indefinite-lived Intangible Assets | ||
Weighted-average Estimated Useful Life | 7 years | |
Gross Carrying Amount | $ 12.8 | 14 |
Accumulated Amortization | $ (1.1) | $ (1.5) |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Narratives (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Finite-Lived Intangible Assets | ||
Amortization expense | $ 7.2 | $ 5.5 |
Government grants | Minimum | ||
Finite-Lived Intangible Assets | ||
Finite lived intangible assets useful life | 10 years | |
Government grants | Maximum | ||
Finite-Lived Intangible Assets | ||
Finite lived intangible assets useful life | 50 years |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Future Amortization Expense (Details) $ in Millions | Mar. 31, 2019USD ($) |
Estimated Amortization Expense for Intangible Assets | |
2019 | $ 21 |
2020 | 26.8 |
2021 | 20.2 |
2022 | 19.3 |
2023 | $ 19.2 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Government Grants (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets | ||
Gross carrying amount | $ 329.3 | $ 333.1 |
Government grants | ||
Finite-Lived Intangible Assets | ||
Gross carrying amount | 8.4 | 8.2 |
Government grants | Current | ||
Finite-Lived Intangible Assets | ||
Gross carrying amount | 0.5 | 0.5 |
Government grants | Long-term | ||
Finite-Lived Intangible Assets | ||
Gross carrying amount | $ 7.9 | $ 7.7 |
Debt and Credit Arrangements -
Debt and Credit Arrangements - Summary of Outstanding Borrowings (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 | Nov. 06, 2017 |
Debt Instrument | |||
Total debt, net of unamortized discount and debt issuance costs | $ 532,800,000 | $ 544,400,000 | |
Less: current maturities | 214,800,000 | 11,200,000 | |
Long-term debt | 318,000,000 | 533,200,000 | |
Foreign facilities | |||
Debt Instrument | |||
Long term debt | 8,900,000 | 11,200,000 | |
Revolving Credit Facility | Senior secured revolving credit facility due November 2022 | |||
Debt Instrument | |||
Unamortized debt issuance costs | (2,900,000) | ||
Long term debt | 318,000,000 | 329,300,000 | |
Convertible Debt | Convertible Notes, due 2024 | |||
Debt Instrument | |||
Principal amount | 258,800,000 | 258,800,000 | $ 258,800,000 |
Unamortized discount | (48,600,000) | (50,400,000) | |
Unamortized debt issuance costs | (4,300,000) | (4,500,000) | |
Convertible Debt | $ 205,900,000 | $ 203,900,000 |
Debt and Credit Arrangements _2
Debt and Credit Arrangements - 2024 Notes Narratives (Details) $ / shares in Units, shares in Thousands | Nov. 06, 2017USD ($)$ / shares | Dec. 31, 2017USD ($)$ / sharesshares | Mar. 31, 2019USD ($)day$ / shares | Dec. 31, 2018USD ($) | Oct. 31, 2017$ / shares |
Common Stock | |||||
Debt Instrument | |||||
Share price (usd per share) | $ / shares | $ 90.52 | ||||
Convertible Debt | Convertible Notes, due 2024 | |||||
Debt Instrument | |||||
Debt instrument stated interest rate (percent) | 1.00% | ||||
Debt instrument face amount | $ 258,800,000 | $ 258,800,000 | $ 258,800,000 | ||
Share conversion rate | 0.0170285 | ||||
Debt instrument, conversion price (usd per share) | $ / shares | $ 58.725 | ||||
Debt instrument, conversion premium | 35.00% | ||||
Share price (usd per share) | $ / shares | $ 43.50 | ||||
Debt instrument, excess over fair value if converted | $ 140,100,000 | ||||
Debt instrument, threshold for consecutive trading days | day | 20 | ||||
Debt instrument, threshold for consecutive trading days | day | 30 | ||||
Applicable conversion price threshold (as percentage) | 130.00% | ||||
Maximum days after five trading days | 5 days | ||||
Applicable conversion price, less than (as percentage) | 97.00% | ||||
Debt instrument strike price (usd per share) | $ / shares | $ 76.3425 | ||||
Convertible debt, current | $ 210,300,000 | ||||
Debt instrument effective interest rate | 4.80% | ||||
Non cash payment for derivative instrument | $ 59,500,000 | ||||
Number of shares underlying warrant | shares | 4,410 | ||||
Proceeds from issuances of warrants | $ 46,000,000 | ||||
Percentage above previous sales price | 65.00% | ||||
Net cost of convertible note hedge and warrant | $ 13,500,000 | ||||
Convertible Debt | Convertible Notes, due 2024 | Maximum | |||||
Debt Instrument | |||||
Debt instrument, conversion price (usd per share) | $ / shares | $ 71.775 | ||||
Convertible Debt | Convertible Notes, due 2024 | Liability Component | |||||
Debt Instrument | |||||
Debt instrument face amount | $ 200,100,000 | ||||
Debt issuance costs | 5,300,000 | ||||
Convertible Debt | Convertible Notes, due 2024 | Equity Component | |||||
Debt Instrument | |||||
Debt instrument face amount | $ 58,700,000 | ||||
Debt issuance costs | $ 1,500,000 |
Debt and Credit Arrangements _3
Debt and Credit Arrangements - 2018 Notes (Details) - Convertible Notes, Due 2018 - Convertible Debt - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2018 | Mar. 31, 2019 | Aug. 01, 2018 | |
Debt Instrument | |||
Debt instrument stated interest rate (percent) | 2.00% | ||
Debt instrument face amount | $ 57.1 | ||
Repayment of debt | $ 57.1 | ||
Interest paid | $ 0.6 | ||
Percentage of expired warrants (percent) | 90.00% |
Debt and Credit Arrangements _4
Debt and Credit Arrangements - Notes Interest Accretion Schedule (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Debt Instrument | ||
Interest accretion of convertible notes discount | $ 1.8 | $ 2.5 |
Financing costs amortization | 0.4 | 0.3 |
Convertible Debt | Convertible Notes, due 2024 | ||
Debt Instrument | ||
Interest accretion of convertible notes discount | 1.8 | 1.7 |
Debt instrument, interest expense | 0.6 | 0.6 |
Interest expense | 2.4 | 2.3 |
Financing costs amortization | $ 0.2 | 0.2 |
Convertible Debt | Convertible Notes, Due 2018 | ||
Debt Instrument | ||
Interest accretion of convertible notes discount | 0.8 | |
Debt instrument, interest expense | 0.6 | |
Interest expense | $ 1.4 |
Debt and Credit Arrangements _5
Debt and Credit Arrangements - Senior Secured Revolving Credit Facility (Details) | 3 Months Ended | |||||
Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2020 | Dec. 31, 2018USD ($) | Oct. 26, 2018USD ($) | Aug. 01, 2018 | |
Debt Instrument | ||||||
Financing costs amortization | $ 400,000 | $ 300,000 | ||||
Senior Secured Revolving Credit Facility | Revolving Credit Facility | ||||||
Debt Instrument | ||||||
Debt instrument, term | 5 years | |||||
Debt instrument stated interest rate (percent) | 1.00% | |||||
Line of credit fronting fee (as a percentage) | 0.125% | |||||
Maximum percentage of capital stock guaranteed by company | 65.00% | |||||
Senior Secured Revolving Credit Facility | Revolving Credit Facility | Adjusted Base Rate | ||||||
Debt Instrument | ||||||
Debt instrument variable interest rate ( percent) | 1.00% | |||||
Senior secured revolving credit facility due November 2022 | Swing line loan | ||||||
Debt Instrument | ||||||
Interest expense | 2,500,000 | |||||
Senior secured revolving credit facility due November 2022 | Revolving Credit Facility | ||||||
Debt Instrument | ||||||
Line of credit fronting fee (as a percentage) | 0.125% | |||||
Senior secured revolving credit facility due November 2022 | Revolving Credit Facility | ||||||
Debt Instrument | ||||||
Debt instrument, term | 5 years | |||||
Maximum borrowing capacity | $ 550,000,000 | |||||
Debt issuance costs | $ 3,200,000 | |||||
Unamortized debt issuance costs | 2,900,000 | |||||
Financing costs amortization | 200,000 | 100,000 | ||||
Long term debt | $ 318,000,000 | $ 329,300,000 | ||||
Weighted average interest rate (percent) | 3.90% | |||||
Letters of credit outstanding | $ 49,400,000 | |||||
Line of credit remaining borrowing amount | 182,600,000 | |||||
Interest expense | $ 3,200,000 | |||||
Senior secured revolving credit facility due November 2022 | Revolving Credit Facility | Minimum | ||||||
Debt Instrument | ||||||
Line of credit commitment fee (as a percentage) | 0.20% | |||||
Line of credit participation fee (as a percentage) | 1.50% | |||||
Senior secured revolving credit facility due November 2022 | Revolving Credit Facility | Maximum | ||||||
Debt Instrument | ||||||
Line of credit commitment fee (as a percentage) | 0.375% | |||||
Line of credit participation fee (as a percentage) | 2.50% | |||||
Senior secured revolving credit facility due November 2022 | Revolving Credit Facility Sub-limit - Swingline | ||||||
Debt Instrument | ||||||
Maximum borrowing capacity | $ 25,000,000 | |||||
Senior secured revolving credit facility due November 2022 | Revolving Credit Facility Sub-limit - Letters of Credit | ||||||
Debt Instrument | ||||||
Maximum borrowing capacity | 100,000,000 | |||||
Senior secured revolving credit facility due November 2022 | Revolving Credit Facility Sub-limit - Foreign Currency | ||||||
Debt Instrument | ||||||
Maximum borrowing capacity | 250,000,000 | |||||
Senior secured revolving credit facility due November 2022 | Revolving Credit Facility Sub-limit - Foreign Borrower | ||||||
Debt Instrument | ||||||
Maximum borrowing capacity | 250,000,000 | |||||
Senior secured revolving credit facility due November 2022 | Revolving Credit Facility Sub-limit - Expansion Option | ||||||
Debt Instrument | ||||||
Maximum borrowing capacity | $ 225,000,000 | |||||
Convertible Notes, Due 2018 | Convertible Debt | ||||||
Debt Instrument | ||||||
Debt instrument stated interest rate (percent) | 2.00% | |||||
Leverage ratio | 4.50 | |||||
Interest expense | $ 1,400,000 | |||||
Convertible Notes, Due 2018 | Convertible Debt | Minimum | ||||||
Debt Instrument | ||||||
Interest to EBITDA | 3 | |||||
Convertible Notes, Due 2018 | Convertible Debt | Maximum | ||||||
Debt Instrument | ||||||
Leverage ratio | 4 | |||||
Convertible Notes, Due 2018 | Convertible Debt | Forecasted | ||||||
Debt Instrument | ||||||
Leverage ratio | 3.50 |
Debt and Credit Arrangements _6
Debt and Credit Arrangements - Foreign Facilities (Details) | 3 Months Ended | |||||||
Mar. 31, 2019CNY (¥) | Mar. 31, 2019INR (₨)creditfacilities | Mar. 31, 2019CNY (¥)creditfacilities | Mar. 31, 2019USD ($)creditfacilities | Mar. 31, 2019CZK (Kč)creditfacilities | Mar. 31, 2019EUR (€)creditfacilities | Dec. 31, 2018INR (₨) | Dec. 31, 2018USD ($) | |
Cryo Diffusion S.A.S | ||||||||
Debt Instrument | ||||||||
Maximum borrowing capacity | $ 1,400,000 | € 1,100,000 | ||||||
Line of credit outstanding | $ 1,200,000 | € 1,100,000 | ||||||
Weighted average interest rate (percent) | 1.49% | 1.49% | 1.49% | 1.49% | 1.49% | |||
Revolving Credit Facility | VRV Asia Pacific Private Limited | Subsidiary | ||||||||
Debt Instrument | ||||||||
Maximum borrowing capacity | ₨ 600,000,000 | $ 8,700,000 | ||||||
Line of credit outstanding | ₨ 106,900,000 | $ 1,500,000 | ₨ 144,000,000 | $ 2,100,000 | ||||
Weighted average interest rate (percent) | 4.35% | 4.35% | 4.35% | 4.35% | 4.35% | |||
Letters of credit outstanding | ₨ 151,900,000 | $ 2,200,000 | ||||||
Revolving Credit Facility | China Facilities | ||||||||
Debt Instrument | ||||||||
Maximum borrowing capacity | ¥ 50,000,000 | 7,400,000 | ||||||
Line of credit outstanding | ¥ 34,000,000 | $ 5,000,000 | ||||||
Debt instrument stated interest rate (percent) | 4.903% | 4.903% | 4.903% | 4.903% | 4.903% | |||
Revolving Credit Facility | China Facilities | Chart Cryogenic Engineering Systems Co., Ltd. | ||||||||
Debt Instrument | ||||||||
Bank guarantees | ¥ 2,770,000 | $ 400,000 | ||||||
Line of Credit - Working Capital | CCDEC Facility | ||||||||
Debt Instrument | ||||||||
Maximum borrowing capacity | 70,000,000 | 10,400,000 | ||||||
Bank guarantees | 5,200,000 | 800,000 | ||||||
Long-term Debt | CCESC Term Loan Maturing May 26, 2024 | ||||||||
Debt Instrument | ||||||||
Debt instrument face amount | 86,600,000 | 12,900,000 | ||||||
Debt instrument, term | 8 years | |||||||
Debt instrument periodic payments | ¥ | ¥ 10,000,000 | |||||||
Long-term debt | ¥ 6,600,000 | $ 1,000,000 | ||||||
Fixed interest rate (percent) | 5.39% | 5.39% | 5.39% | 5.39% | 5.39% | |||
Secured Debt | Ferox Credit Facilities | ||||||||
Debt Instrument | ||||||||
Number of credit facilities | creditfacilities | 3 | 3 | 3 | 3 | 3 | |||
Secured Debt | Ferox Secured Facility A1 Facility | ||||||||
Debt Instrument | ||||||||
Maximum borrowing capacity | $ 5,900,000 | Kč 135,000,000 | ||||||
Secured Debt | Ferox Secured Facility A1 Facility | Maximum | ||||||||
Debt Instrument | ||||||||
Percentage of face amount up to maturity | 0.50% | 0.50% | 0.50% | 0.50% | 0.50% | |||
Secured Debt | Ferox Secured Facility B2facilities | ||||||||
Debt Instrument | ||||||||
Maximum borrowing capacity | $ 7,900,000 | € 7,000,000 | ||||||
Number of credit facilities | creditfacilities | 2 | 2 | 2 | 2 | 2 | |||
Secured Debt | Ferox Secured Facility B2facilities | Maximum | ||||||||
Debt Instrument | ||||||||
Percentage of face amount up to maturity | 0.70% | 0.70% | 0.70% | 0.70% | 0.70% | |||
Secured Debt | Ferox Secured Facilities A and B Member | ||||||||
Debt Instrument | ||||||||
Bank guarantees | $ 6,300,000 | Kč 144,100,000 | ||||||
Overdraft Facility | Chart Luxembourg Facility | ||||||||
Debt Instrument | ||||||||
Maximum borrowing capacity | $ | 5,000,000 | |||||||
Line of credit outstanding | $ | $ 0 |
Debt and Credit Arrangements _7
Debt and Credit Arrangements - Letters of Credit (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Debt Instrument | ||
Restricted cash | $ 1 | $ 6.5 |
Restricted cash, noncurrent | 1 | 1 |
Restricted cash, current | $ 0 | $ 5.5 |
Debt and Credit Arrangements _8
Debt and Credit Arrangements - Fair Value Disclosures about Debt (Details) | Mar. 31, 2019 | Dec. 31, 2018 |
Convertible Debt | Convertible Notes, due 2024 | ||
Debt Instrument | ||
Debt instrument percentage over par value | 163.00% | 124.00% |
Product Warranties (Details)
Product Warranties (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Movement in Standard Product Warranty Accrual | |
Beginning balance standard product warranty accrual | $ 8.9 |
Issued – warranty expense | 1.1 |
Warranty usage | (1) |
Ending balance standard product warranty accrual | $ 9 |
Business Combinations - VRV Nar
Business Combinations - VRV Narratives (Details) € in Millions, $ in Millions | Nov. 15, 2018USD ($) | Nov. 15, 2018EUR (€) | Mar. 31, 2019USD ($) | Mar. 31, 2019EUR (€) | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Nov. 15, 2018EUR (€) |
Business Acquisition | |||||||
Payment for acquisition of businesses, net of cash acquired | $ 2.8 | $ 12.5 | |||||
Borrowings on revolving credit facilities | $ 160.3 | € 140 | $ 18.8 | 38 | |||
Useful lives of identifiable finite-lived intangible assets | 14 years | 14 years | |||||
VRV | |||||||
Business Acquisition | |||||||
Consideration transferred | 216.1 | 191.1 | |||||
Cash acquired | 1.4 | € 1.3 | |||||
Payment for acquisition of businesses, net of cash acquired | 141.3 | 125 | |||||
Payment of outstanding debt | 72 | € 63.7 | |||||
Adjustments | $ 2.8 | € 2.5 | |||||
Debt assumed | $ 4.9 | $ 4.9 | $ 4.9 | € 4.4 | |||
Useful lives of identifiable finite-lived intangible assets | 9 years | 9 years | |||||
Pro forma sales | $ 313.5 | ||||||
VRV | Minimum | |||||||
Business Acquisition | |||||||
Useful lives of identifiable finite-lived intangible assets | 2 years | 2 years | |||||
VRV | Maximum | |||||||
Business Acquisition | |||||||
Useful lives of identifiable finite-lived intangible assets | 12 years | 12 years |
Business Combinations - VRV Net
Business Combinations - VRV Net asset Acquired (Details) € in Millions, $ in Millions | 3 Months Ended | ||||
Mar. 31, 2019USD ($) | Mar. 31, 2019EUR (€) | Dec. 31, 2018USD ($) | Nov. 15, 2018USD ($) | Nov. 15, 2018EUR (€) | |
Net assets acquired: | |||||
Goodwill | $ 537.1 | $ 520.7 | |||
Adjustments | |||||
Goodwill | 18.7 | ||||
VRV | |||||
Net assets acquired: | |||||
Identifiable intangible assets | 66.6 | 66.6 | |||
Property, plant and equipment | 70.5 | 70.5 | |||
Goodwill | 81.1 | 63.2 | |||
Other assets | 2.8 | 17.9 | |||
Debt | (4.9) | (4.9) | $ (4.9) | € (4.4) | |
Net assets acquired | 216.1 | $ 213.3 | |||
Adjustments | |||||
Goodwill | 17.9 | ||||
Other net assets | (15.1) | ||||
Net assets acquired | $ 2.8 | € 2.5 |
Business Combinations - Intangi
Business Combinations - Intangible Assets Acquired (Details) - USD ($) $ in Millions | Nov. 15, 2018 | Mar. 31, 2019 |
Acquired Finite-Lived Intangible Assets | ||
Weighted-average Estimated Useful Life | 14 years | |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets | ||
Weighted-average Estimated Useful Life | 14 years | |
Unpatented technology | ||
Acquired Finite-Lived Intangible Assets | ||
Weighted-average Estimated Useful Life | 12 years | |
Trademarks and trade names | ||
Acquired Finite-Lived Intangible Assets | ||
Weighted-average Estimated Useful Life | 14 years | |
VRV | ||
Acquired Finite-Lived Intangible Assets | ||
Weighted-average Estimated Useful Life | 9 years | |
Finite lived intangible assets acquired | $ 66.6 | |
VRV | Customer relationships | ||
Acquired Finite-Lived Intangible Assets | ||
Weighted-average Estimated Useful Life | 12 years | |
Finite lived intangible assets acquired | $ 28.1 | |
VRV | Unpatented technology | ||
Acquired Finite-Lived Intangible Assets | ||
Weighted-average Estimated Useful Life | 12 years | |
Finite lived intangible assets acquired | $ 15.9 | |
VRV | Other Identifiable intangible assets | ||
Acquired Finite-Lived Intangible Assets | ||
Weighted-average Estimated Useful Life | 4 years | |
Finite lived intangible assets acquired | $ 11.8 | |
VRV | Trademarks and trade names | ||
Acquired Finite-Lived Intangible Assets | ||
Weighted-average Estimated Useful Life | 14 years | |
Finite lived intangible assets acquired | $ 10.8 |
Business Combinations - Skaff N
Business Combinations - Skaff Narratives (Details) - USD ($) $ in Millions | Jan. 02, 2018 | Mar. 31, 2019 | Mar. 31, 2018 |
Business Acquisition | |||
Payment for acquisition of businesses, net of cash acquired | $ 2.8 | $ 12.5 | |
Goodwill purchase price adjustment | 18.7 | ||
Skaff | |||
Business Acquisition | |||
Voting percentage acquired | 100.00% | ||
Payment for acquisition of businesses, net of cash acquired | $ 12.5 | ||
Long-term deferred tax liabilities | 0.8 | ||
Goodwill purchase price adjustment | $ 0.8 |
Business Combinations - Conting
Business Combinations - Contingent Consideration (Details) - Thermax - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Mar. 31, 2019 | |
Business Acquisition | ||
Contingent consideration | $ 1.8 | |
Contingent consideration, potential cash payments, low end | $ 0 | |
Contingent consideration, potential cash payments, high end | $ 11.3 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Accumulated Other Comprehensive Loss | ||
Beginning balance | $ 889 | $ 805.2 |
Ending balance | 893.5 | 828.6 |
Accumulated other comprehensive loss | ||
Accumulated Other Comprehensive Loss | ||
Beginning balance | (29.9) | (8.1) |
Other comprehensive (loss) income | (4.9) | 12.1 |
Amounts reclassified from accumulated other comprehensive loss, net of income taxes | 0.3 | 0.3 |
Net current-period other comprehensive (loss) income, net of taxes | (4.6) | 12.4 |
Ending balance | (34.5) | 4.3 |
Foreign currency translation adjustments | ||
Accumulated Other Comprehensive Loss | ||
Beginning balance | (17.5) | 2.2 |
Other comprehensive (loss) income | (4.9) | 12.1 |
Amounts reclassified from accumulated other comprehensive loss, net of income taxes | 0 | 0 |
Net current-period other comprehensive (loss) income, net of taxes | (4.9) | 12.1 |
Ending balance | (22.4) | 14.3 |
Pension liability adjustments, net of taxes | ||
Accumulated Other Comprehensive Loss | ||
Beginning balance | (12.4) | (10.3) |
Other comprehensive (loss) income | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss, net of income taxes | 0.3 | 0.3 |
Net current-period other comprehensive (loss) income, net of taxes | 0.3 | 0.3 |
Ending balance | $ (12.1) | $ (10) |
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 | |
Net income attributable to Chart Industries, Inc. | ||
Income from continuing operations | $ 0.9 | $ 4.2 |
Income from discontinued operations, net of tax | 0 | 1.6 |
Net income attributable to Chart Industries, Inc. | $ 0.9 | $ 5.8 |
Earnings per common share – basic: | ||
Income from continuing operations, basic (usd per share) | $ 0.03 | $ 0.14 |
Income from discontinued operations, basic (usd per share) | 0 | 0.05 |
Net income attributable to Chart Industries, Inc. (usd per share) | 0.03 | 0.19 |
Earnings per common share – diluted: | ||
Income from continuing operations (usd per share) | 0.03 | 0.13 |
Income from discontinued operations, diluted (usd per share) | 0 | 0.05 |
Net income attributable to Chart Industries, Inc. (usd per share) | $ 0.03 | $ 0.18 |
Weighted average number of common shares outstanding — basic (shares) | 31,570 | 30,910 |
Incremental shares issuable upon assumed conversion and exercise of share-based awards (shares) | 550 | 750 |
Incremental shares issuable due to dilutive effect of convertible (shares) | 1,200 | 0 |
Incremental shares issuable due to dilutive effect of warrants (shares) | 490 | 0 |
Weighted average number of common shares outstanding – diluted (shares) | 33,810 | 31,660 |
Earnings Per Share - Antidiluti
Earnings Per Share - Antidilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Total anti-dilutive securities | 1,340 | 5,510 |
Share-based awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Total anti-dilutive securities | 140 | 330 |
Convertible note hedge | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Total anti-dilutive securities | 1,200 | 0 |
Warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Total anti-dilutive securities | 0 | 5,180 |
Earnings Per Share - Narratives
Earnings Per Share - Narratives (Details) - Convertible Notes, due 2024 - Convertible Debt - $ / shares | Dec. 31, 2017 | Nov. 06, 2017 |
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Debt instrument, conversion price (usd per share) | $ 58.725 | |
Maximum | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Debt instrument, conversion price (usd per share) | $ 71.775 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Income tax (benefit) expense | $ (2) | $ 1.6 | |
Effective income tax rate (percent) | 200.00% | 25.40% | |
Liability for gross unrecognized tax benefits | $ 2.4 | $ 2.3 | |
Unrecognized tax benefit that would impact effective tax rate | $ 1.8 | $ 0.1 |
Share-based Compensation (Detai
Share-based Compensation (Details) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Allocated share-based compensation expense | $ 2.4 | $ 2.9 |
Share based compensation expense not yet recognized | $ 14.6 | |
Period in which unrecognized share based compensation will be recognized | 2 years 7 months 14 days | |
Management | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Share-based compensation, fair value of awards granted | $ 9.8 | |
Director | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Share-based compensation, fair value of restricted shares granted | $ 0.1 | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Share-based compensation, shares granted (shares) | 100 | |
Share-based compensation, shares exercised (shares) | 250 | |
Share-based compensation, stock option forfeited (shares) | 10 | |
Share-based compensation, vesting period | 4 years | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Share-based compensation, restricted shares granted (shares) | 70 | |
Share-based compensation, vesting period | 3 years | |
Share-based compensation, shares forfeited other than options (shares) | 10 | |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Share-based compensation, shares vested other than options (shares) | 110 | |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Share-based compensation, restricted shares granted (shares) | 30 | |
Share-based compensation, vesting period | 3 years | |
Share-based compensation, shares forfeited other than options (shares) | 20 |
Commitment and Contingencies -
Commitment and Contingencies - Narratives (Details) $ in Millions | 3 Months Ended |
Jun. 30, 2018USD ($) | |
Operating Segments | Cryobiological storage | D&S West | |
Contingencies | |
Warranty accrual | $ 4 |
Commitment and Contingencies _2
Commitment and Contingencies - Rollforward (Details) - Product warranties - USD ($) $ in Millions | 3 Months Ended | 11 Months Ended |
Mar. 31, 2019 | Mar. 31, 2019 | |
Movement in Standard Product Warranty Accrual | ||
Beginning balance standard product warranty accrual | $ 3.8 | |
Reserve usage | (3.9) | |
Change in estimate - expense | $ 0.2 | |
Ending balance standard product warranty accrual | $ 0.1 | $ 0.1 |
Restructuring Activities - Narr
Restructuring Activities - Narratives (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Restructuring Cost and Reserve | ||
Restructuring costs | $ 7.4 | $ 0.9 |
Operating Segments | Energy & Chemicals | ||
Restructuring Cost and Reserve | ||
Restructuring costs | 4.5 | 0.2 |
Expected restructuring charges | 1.5 | |
Operating Segments | D&S East | ||
Restructuring Cost and Reserve | ||
Restructuring costs | 2.4 | $ 0.2 |
Expected restructuring charges | $ 0.4 |
Restructuring Activities - Rest
Restructuring Activities - Restructuring Charges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Restructuring Cost and Reserve | ||
Severance costs | $ 1.5 | $ 0.5 |
Other restructuring costs | 5.9 | 0.4 |
Restructuring costs | 7.4 | 0.9 |
Cost of sales | ||
Restructuring Cost and Reserve | ||
Severance costs | 0.5 | 0 |
Other restructuring costs | 5 | 0.3 |
Selling, general, and administrative expenses | ||
Restructuring Cost and Reserve | ||
Severance costs | 1 | 0.5 |
Other restructuring costs | $ 0.9 | $ 0.1 |
Restructuring Activities - Roll
Restructuring Activities - Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Restructuring Reserve | ||
Beginning balance, restructuring accrual | $ 0.9 | $ 2.7 |
Restructuring costs | 7.4 | 0.9 |
Property, plant and equipment impairment and disposals | (4.9) | |
Cash payments and other | (1.3) | (2) |
Ending balance, restructuring accrual | 1.9 | 1.6 |
Operating Segments | Energy & Chemicals | ||
Restructuring Reserve | ||
Beginning balance, restructuring accrual | 0 | 0.2 |
Restructuring costs | 4.5 | 0.2 |
Property, plant and equipment impairment and disposals | (3.2) | |
Cash payments and other | (0.6) | (0.2) |
Ending balance, restructuring accrual | 0.7 | 0.2 |
Operating Segments | D&S West | ||
Restructuring Reserve | ||
Beginning balance, restructuring accrual | 0 | 1.2 |
Restructuring costs | 0.3 | 0 |
Property, plant and equipment impairment and disposals | 0 | |
Cash payments and other | 0 | (1.2) |
Ending balance, restructuring accrual | 0.3 | 0 |
Operating Segments | D&S East | ||
Restructuring Reserve | ||
Beginning balance, restructuring accrual | 0.8 | 0.2 |
Restructuring costs | 2.4 | 0.2 |
Property, plant and equipment impairment and disposals | (1.7) | |
Cash payments and other | (0.5) | (0.4) |
Ending balance, restructuring accrual | 0.8 | 0 |
Corporate | ||
Restructuring Reserve | ||
Beginning balance, restructuring accrual | 0.1 | 1.1 |
Restructuring costs | 0.2 | 0.5 |
Property, plant and equipment impairment and disposals | 0 | |
Cash payments and other | (0.2) | (0.2) |
Ending balance, restructuring accrual | $ 0.1 | $ 1.4 |
Uncategorized Items - gtls-2019
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 2,300,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 2,300,000 |