Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 22, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-11442 | ||
Entity Registrant Name | CHART INDUSTRIES, INC | ||
Entity Incorporation, State | DE | ||
Entity Tax Identification Number | 34-1712937 | ||
Entity Address, Street Address | 3055 Torrington Drive | ||
Entity Address, City | Ball Ground | ||
Entity Address, State | GA | ||
Entity Address, Zip Code | 30107 | ||
City Area Code | 770 | ||
Local Phone Number | 721-8800 | ||
Title of each class | Common Stock, par value $0.01 | ||
Trading Symbol(s) | GTLS | ||
Name of each exchange on which registered | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,739,104,518 | ||
Entity Common Stock, Shares Outstanding | 36,308,260 | ||
Documents Incorporated by Reference | Portions of the following document are incorporated by reference into Part III of this Annual Report on Form 10-K: the definitive Proxy Statement to be used in connection with the Registrant’s Annual Meeting of Stockholders to be held on May 13, 2021 (the “2021 Proxy Statement”). | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000892553 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Current Assets | ||
Cash and cash equivalents | $ 125.1 | $ 119 |
Accounts receivable, less allowances of $8.4 and $8.5, respectively | 200.8 | 191.6 |
Inventories, net | 248.4 | 210 |
Unbilled contract revenue | 79.4 | 86.1 |
Prepaid expenses | 20 | 17.5 |
Other current assets | 29.3 | 27.8 |
Current assets of discontinued operations | 0 | 21.6 |
Total Current Assets | 703 | 673.6 |
Property, plant and equipment, net | 414.5 | 397.8 |
Goodwill | 865.9 | 811.4 |
Identifiable intangible assets, net | 493.1 | 522.4 |
Investments | 78.9 | 13.4 |
Other assets | 15.1 | 15.8 |
Non-current assets of discontinued operations | 0 | 47 |
TOTAL ASSETS | 2,570.5 | 2,481.4 |
Current Liabilities | ||
Accounts payable | 140.1 | 120.8 |
Customer advances and billings in excess of contract revenue | 118.9 | 127.7 |
Accrued salaries, wages and benefits | 39.7 | 40 |
Accrued income taxes | 46.5 | 11.8 |
Current portion of warranty reserve | 11 | 10.2 |
Short-term debt and current portion of long-term debt | 0 | 16.3 |
Current convertible notes | 220.9 | 0 |
Operating lease liabilities, current | 5.1 | 6.3 |
Other current liabilities | 52.6 | 39.3 |
Current liabilities of discontinued operations | 0 | 5.9 |
Total Current Liabilities | 634.8 | 378.3 |
Long-term debt | 221.6 | 761 |
Long-term deferred tax liabilities | 60.2 | 52.1 |
Accrued pension liabilities | 9.6 | 10.2 |
Operating lease liabilities, non-current | 23.6 | 27.8 |
Other long-term liabilities | 41.4 | 19.4 |
Non-current liabilities of discontinued operations | 0 | 0.2 |
Total Liabilities | 991.2 | 1,249 |
Equity | ||
Common stock, par value $0.01 per share — 150,000,000 shares authorized, 36,185,829 and 35,799,994 shares issued and outstanding at December 31, 2020 and 2019, respectively | 0.4 | 0.4 |
Additional paid-in capital | 780.8 | 762.8 |
Treasury Stock; 760,782 shares at December 31, 2020 | (19.3) | 0 |
Retained earnings | 808.4 | 500.3 |
Accumulated other comprehensive income (loss) | 2.4 | (35.9) |
Total Chart Industries, Inc. Shareholders’ Equity | 1,572.7 | 1,227.6 |
Noncontrolling interests | 6.6 | 4.8 |
Total Equity | 1,579.3 | 1,232.4 |
TOTAL LIABILITIES AND EQUITY | $ 2,570.5 | $ 2,481.4 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowances for doubtful accounts | $ 8.4 | $ 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) | 36,185,829 | 35,799,994 |
Common stock, shares outstanding (shares) | 36,185,829 | 35,799,994 |
Treasury stock (shares) | 760,782 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Sales | $ 1,177.1 | $ 1,215.5 | $ 1,003.9 |
Cost of sales | 845 | 918 | 744.8 |
Gross profit | 332.1 | 297.5 | 259.1 |
Selling, general and administrative expenses | 178.2 | 205.7 | 172.7 |
Amortization expense | 45.7 | 39.8 | 21.9 |
Asset impairments | 16 | 0 | 0 |
Operating expenses | 239.9 | 245.5 | 194.6 |
Operating income | 92.2 | 52 | 64.5 |
Interest expense, net | 17.7 | 14.7 | 21.4 |
Gain on bargain purchase | (5) | 0 | 0 |
Unrealized (gain) loss on investment in equity securities | (13.1) | 0.1 | 0 |
Financing costs amortization | 4.3 | 3 | 1.3 |
Foreign currency loss (gain) | 0.9 | (0.4) | 0.1 |
Other expense | 2.2 | 0 | 0 |
Income from continuing operations before income taxes | 85.2 | 34.6 | 41.7 |
Income tax expense (benefit): | |||
Current | 13.9 | 19 | 1.9 |
Deferred | 1 | (16.2) | 5.3 |
Income tax expense (benefit), net | 14.9 | 2.8 | 7.2 |
Net income from continuing operations | 70.3 | 31.8 | 34.5 |
Income from discontinued operations, net of tax | 239.2 | 15 | 55.5 |
Net income | 309.5 | 46.8 | 90 |
Less: Income attributable to noncontrolling interests of continuing operations, net of taxes | 1.4 | 0.4 | 2 |
Net income attributable to Chart Industries, Inc. | 308.1 | 46.4 | 88 |
Net income attributable to Chart Industries, Inc. | |||
Income from continuing operations | 68.9 | 31.4 | 32.5 |
Income from discontinued operations | 239.2 | 15 | 55.5 |
Net income attributable to Chart Industries, Inc. | $ 308.1 | $ 46.4 | $ 88 |
Basic earnings per common share attributable to Chart Industries, Inc. | |||
Income from continuing operations (usd per share) | $ 1.95 | $ 0.93 | $ 1.05 |
Income from discontinued operations (usd per share) | 6.76 | 0.44 | 1.78 |
Net income attributable to Chart Industries, Inc. (usd per share) | 8.71 | 1.37 | 2.83 |
Diluted earnings per common share attributable to Chart Industries, Inc. | |||
Income from continuing operations (usd per share) | 1.89 | 0.89 | 1.01 |
Income from discontinued operations (usd per share) | 6.56 | 0.43 | 1.72 |
Net income attributable to Chart Industries, Inc. (usd per share) | $ 8.45 | $ 1.32 | $ 2.73 |
Weighted-average number of common shares outstanding: | |||
Basic (shares) | 35,380 | 33,910 | 31,050 |
Diluted (shares) | 36,450 | 35,170 | 32,200 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 309.5 | $ 46.8 | $ 90 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 38.8 | (7.5) | (19.7) |
Defined benefit pension plan: | |||
Actuarial (loss) gain on remeasurement | (1.9) | 0.3 | (3.5) |
Amortization of net loss | 1.2 | 1.3 | 0.9 |
Defined benefit pension plan | (0.7) | 1.6 | (2.6) |
Other comprehensive income (loss), before tax | 38.1 | (5.9) | (22.3) |
Income tax benefit (expense) related to defined benefit pension plan | 0.2 | (0.1) | 0.5 |
Other comprehensive income (loss), net of taxes | 38.3 | (6) | (21.8) |
Comprehensive income | 347.8 | 40.8 | 68.2 |
Less: Comprehensive income attributable to noncontrolling interests, net of taxes | (1.4) | (0.4) | (2) |
Comprehensive income attributable to Chart Industries, Inc. | $ 346.4 | $ 40.4 | $ 66.2 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
OPERATING ACTIVITIES | ||||||
Net income | $ 309.5 | $ 46.8 | $ 90 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Depreciation and amortization | 85.2 | 78.8 | 54.7 | |||
Gain on sale of business | (249.4) | 0 | (36.9) | |||
Asset impairments | 16 | 0 | 0 | |||
Gain on bargain purchase | (5) | 0 | 0 | |||
Interest accretion of convertible notes discount | 8 | 7.6 | 9.1 | |||
Financing costs amortization | 4.3 | 3 | 1.3 | |||
Employee share-based compensation expense | 8.9 | 9 | 6.9 | |||
Unrealized (gain) loss on investment in equity securities | (13.1) | 0.1 | 0 | |||
Unrealized foreign currency transaction (gain) loss | 2.3 | 0.6 | (2.2) | |||
Deferred income tax expense (benefit) | 1 | (16.2) | 5.3 | |||
Other non-cash operating activities | 1.5 | 0.8 | (2.4) | |||
Changes in assets and liabilities, net of acquisitions: | ||||||
Accounts receivable | (10.1) | 23.6 | 32.5 | |||
Inventory | (34.9) | 9.4 | (35.6) | |||
Unbilled contract revenues and other assets | (5) | (1.6) | (3.7) | |||
Accounts payable and other liabilities | 62.8 | (20.9) | (35.7) | |||
Customer advances and billings in excess of contract revenue | (9.3) | (7.1) | 5.5 | |||
Net Cash Provided By Operating Activities | 172.7 | 133.9 | 88.8 | |||
INVESTING ACTIVITIES | ||||||
Proceeds from sale of businesses | 317.5 | 0 | 133.5 | |||
Acquisition of businesses, net of cash acquired | (51.9) | (603.9) | (225.8) | |||
Investments | [1] | (50.8) | (3.3) | 0 | ||
Capital expenditures | (37.9) | (36.2) | (36.4) | |||
Proceeds from sale of assets | 7.9 | 0 | 0 | |||
Government grants | 0.2 | 0.7 | 0.8 | |||
Net Cash Provided By (Used In) Investing Activities | 185 | (642.7) | (127.9) | |||
FINANCING ACTIVITIES | ||||||
Borrowings on revolving credit facilities | 215 | 235.8 | 411.7 | |||
Repayments on revolving credit facilities | (223.1) | (451.1) | (316.8) | |||
Repurchase of convertible notes | 0 | 0 | (57.1) | |||
Borrowings on term loan | 0 | 450 | 0 | |||
Repayments on term loan | (344.1) | (2.8) | (5.9) | |||
Payments for debt issuance costs | (1) | (13.6) | (1.4) | |||
Issuance of shares | 0 | 295.8 | 0 | |||
Payments for equity issuance costs | 0 | (9.5) | 0 | |||
Proceeds from exercise of stock options | 11 | 9.4 | 10.8 | |||
Common stock repurchases from share-based compensation plans | (1.9) | (2) | (2.7) | |||
Common stock repurchases | (19.3) | 0 | 0 | |||
Dividend distribution to noncontrolling interests | 0 | (0.4) | (0.4) | |||
Net Cash (Used in) Provided By Financing Activities | (363.4) | 511.6 | 38.2 | |||
Effect of exchange rate changes on cash and cash equivalents | 11.8 | (1.9) | (11.4) | |||
Net (decrease) increase in cash, cash equivalents, restricted cash, and restricted cash equivalents | [2] | 6.1 | 0.9 | (12.3) | ||
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period | 120 | [3] | 119.1 | [3] | 131.4 | |
CASH, CASH EQUIVALENTS, RESTRICTED CASH, AND RESTRICTED CASH EQUIVALENTS AT END OF PERIOD | [3] | $ 126.1 | $ 120 | $ 119.1 | ||
[1] | Non-cash investing activities of $7.0 related to the conversion of a note receivable into an investment in equity securities during the year ended December 31, 2019. Refer to Note 6, “Investments” for further information. | |||||
[2] | Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents represents cash flows of consolidated operations for all periods presented. For cash flows of discontinued operations, refer to Note 3, “Discontinued Operations.” | |||||
[3] | Refer to Note 10, “Debt and Credit Arrangements,” for further information regarding restricted cash and restricted cash equivalents balances. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Statement of Cash Flows [Abstract] | |
Transfer to investments | $ 7 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Non-controlling Interests | |
Beginning Balance at Dec. 31, 2017 | $ 805.2 | $ 1.6 | $ 0.3 | $ 445.7 | $ 0 | $ 364.3 | $ (8.1) | $ 3 | |
Beginning balance (shares) at Dec. 31, 2017 | 30,810,000 | ||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income | 90 | 88 | 2 | ||||||
Other comprehensive income | (21.8) | (21.8) | |||||||
Share-based compensation expense | 6.9 | 6.9 | |||||||
Common stock issued from share-based compensation plans | 10.3 | 10.3 | |||||||
Common stock issued from share-based compensation plans (shares) | 600,000 | ||||||||
Common stock repurchases from share-based compensation plans | (2.7) | (2.7) | |||||||
Common stock repurchases from share-based compensation plan (shares) | (50,000) | ||||||||
Dividend distribution to noncontrolling interest | (0.4) | (0.4) | |||||||
Other | (0.1) | (0.1) | |||||||
Ending Balance at Dec. 31, 2018 | 889 | $ 0.3 | 460.2 | 0 | 453.9 | (29.9) | 4.5 | ||
Ending balance (shares) at Dec. 31, 2018 | 31,360,000 | ||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income | 46.8 | 46.4 | 0.4 | ||||||
Other comprehensive income | (6) | (6) | |||||||
Common stock issuance, net of equity issuance costs | [1] | 286.3 | $ 0.1 | 286.2 | |||||
Common stock issuance, net of equity issuance costs (shares) | [1] | 4,030,000 | |||||||
Share-based compensation expense | 9 | 9 | |||||||
Common stock issued from share-based compensation plans | 9.4 | 9.4 | |||||||
Common stock issued from share-based compensation plans (shares) | 300,000 | ||||||||
Common stock repurchases from share-based compensation plans | (2) | (2) | |||||||
Common stock repurchases from share-based compensation plan (shares) | 110,000 | ||||||||
Dividend distribution to noncontrolling interest | (0.4) | (0.4) | |||||||
Other | 0.3 | 0.3 | |||||||
Ending Balance at Dec. 31, 2019 | $ 1,232.4 | $ 0.4 | 762.8 | 0 | 500.3 | (35.9) | 4.8 | ||
Ending balance (shares) at Dec. 31, 2019 | 35,799,994 | 35,800,000 | |||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income | $ 309.5 | 308.1 | 1.4 | ||||||
Other comprehensive income | 38.3 | 38.3 | |||||||
Share-based compensation expense | 8.9 | 8.9 | |||||||
Common stock issued from share-based compensation plans | 11 | 11 | |||||||
Common stock issued from share-based compensation plans (shares) | 420,000 | ||||||||
Common stock repurchases from share-based compensation plans | (1.9) | (1.9) | |||||||
Common stock repurchases from share-based compensation plan (shares) | (30,000) | ||||||||
Common stock repurchases | [2] | (19.3) | (19.3) | ||||||
Other | 0.4 | 0.4 | |||||||
Ending Balance at Dec. 31, 2020 | $ 1,579.3 | $ 0.4 | $ 780.8 | $ (19.3) | $ 808.4 | $ 2.4 | $ 6.6 | ||
Ending balance (shares) at Dec. 31, 2020 | 36,185,829 | 36,190,000 | |||||||
[1] | Equity issuance costs were $9.5 during the year ended December 31, 2019. | ||||||||
[2] | Includes $19.3 in shares repurchased through our share repurchase program. Refer to Note 2, “Significant Accounting Policies,” for further information. |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Statement of Stockholders' Equity [Abstract] | ||||
Equity issuance cost | $ 0 | $ 9.5 | $ 0 | |
Common stock repurchases | [1] | $ 19.3 | ||
[1] | Includes $19.3 in shares repurchased through our share repurchase program. Refer to Note 2, “Significant Accounting Policies,” for further information. |
Nature of Operations and Princi
Nature of Operations and Principles of Consolidation | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Principles of Consolidation | Nature of Operations and Principles of Consolidation Nature of Operations: We are a leading independent global manufacturer of highly engineered equipment servicing multiple applications in the Energy and Industrial Gas markets. Our unique product portfolio is used in every phase of the liquid gas supply chain, including upfront engineering, service and repair. Being at the forefront of the clean energy transition, Chart is a leading provider of technology, equipment and services related to liquefied natural gas, hydrogen, biogas and CO2 Capture amongst other applications. We are committed to excellence in environmental, social and corporate governance (ESG) issues both for our company as well as our customers. With over 25 global locations from the United States to Asia, Australia, India, Europe and South America, we maintain accountability and transparency to our team members, suppliers, customers and communities. Principles of Consolidation: The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and include the accounts of Chart Industries, Inc. and its subsidiaries. Intercompany accounts and transactions are eliminated in consolidation. Reclassifications : On October 1, 2020, we closed on the sale of our cryobiological products business to Cryoport, Inc. (NASDAQ: CYRX). Refer to Note 3, “Discontinued Operations,” for further information. Furthermore, effective October 1, 2020, we changed our reportable segments as further discussed in Note 4, “Segment and Geographic Information. Certain reclassifications have been made to 2019 and 2018 consolidated statements of income and comprehensive income and 2018 consolidated statement of cash flows, the 2019 consolidated balance sheet and certain notes to the consolidated financial statements in order to conform to the 2020 presentation. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies 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. While our production has been considered “essential” in all locations we operate in, we have experienced, and may again experience in the future, temporary facility closures while awaiting appropriate government approvals in certain jurisdictions. The Covid-19 outbreak could also disrupt our supply chain and materially adversely impact our ability to secure supplies for our facilities, which could materially adversely affect our operations. There may also be long-term effects on our customers in and the economies of affected countries. As a result of these uncertainties, actual results could differ from those estimates and assumptions. If the economy or markets in which we operate remain weak or deteriorate further, our business, financial condition and results of operations may be materially and adversely impacted. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law in the United States. The CARES Act, among other things, includes modifications to net operating loss carryforwards provisions and the net interest expense deduction, and deferment of social security tax payments. We have not elected to avail ourselves of the CARES Act. Share Repurchase Program: On March 11, 2020, our Board of Directors authorized a share repurchase program for up to $75 million of the Company’s common stock over the next twelve months through various means, including open market transactions, block purchases, privately negotiated transactions or otherwise in accordance with applicable federal securities laws, including Rule 10b-18 and Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. During the first quarter of 2020, we repurchased 0.76 shares of our common stock at an average price of $25.40 per share for a total purchase price of $19.3. We suspended the program on March 20, 2020 in light of uncertainty resulting from the Covid-19 pandemic and the desire to conserve cash resources. As of December 31, 2020, we had approximately $55.7 available for additional repurchases under the share repurchase program, although we have no current intentions to recommence repurchases under this program. Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents: We consider all investments with an initial maturity of three months or less when purchased to be cash equivalents. See Note 10, “Debt and Credit Arrangements” for additional information about restricted cash and restricted cash equivalents, which are included in other current assets and other assets in the accompanying consolidated balance sheets. Accounts Receivable, Net of Allowances: Accounts receivable includes amounts billed and currently due from customers. The amounts due are stated at their net estimated realizable value. We maintain an allowance for doubtful accounts to provide for the estimated amount of receivables that will not be collected. The allowance is based upon an assessment of customer creditworthiness, historical payment experience, the age of outstanding receivables and collateral to the extent applicable. In addition, we estimate expected credit losses based on historical loss information then adjust the estimates based on current, reasonable and supportable forecast economic conditions. Past-due trade receivable balances are written off when our internal collection efforts have been unsuccessful. As a practical expedient, we do not adjust the promised amount of consideration for the effects of a significant financing component when we expect, at contract inception, that the period between our transfer of a promised product or service to a customer and when the customer pays for that product or service will be one year or less. We do not typically include extended payment terms in our contracts with customers. Inventories: Inventories are stated at the lower of cost or net realizable value with cost being determined by the first-in, first-out (“FIFO”) method. We determine inventory valuation reserves based on a combination of factors. In circumstances where we are aware of a specific problem in the valuation of a certain item, a specific reserve is recorded to reduce the item to its net realizable value. We also recognize reserves based on the actual usage in recent history and projected usage in the near-term. Unbilled Contract Revenue: Unbilled contract revenue represents contract assets resulting from revenue recognized over time in excess of the amount billed to the customer and the amount billed to the customer is not just subject to the passage of time. Billing requirements vary by contract but are generally structured around the completion of certain milestones. These contract assets are generally classified as current. Property, Plant and Equipment: Capital expenditures for property, plant and equipment are recorded at cost. Expenditures for maintenance and repairs are charged to expense as incurred, whereas major improvements that extend the useful life are capitalized. The cost of applicable assets is depreciated over their estimated useful lives. Depreciation is computed using the straight-line method for financial reporting purposes and accelerated methods for income tax purposes. Lease Accounting: 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 right-of-use (“ROU”) assets and are included within property, plant and equipment, net and lease liabilities are included in operating lease liabilities, current and operating lease liabilities, non-current in our consolidated balance sheet. 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 were 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 used our incremental borrowing rate based on the information available on the Commencement Date in determining the present value of lease payments. Long-lived Assets: We monitor our property, plant, equipment, and finite-lived intangible assets for impairment indicators on an ongoing basis. Assets are grouped and tested at the lowest level for which identifiable cash flows are available. If impairment indicators exist, we perform the required analysis and record impairment charges, if applicable. In conducting our analysis, we compare the undiscounted cash flows expected to be generated from the long-lived assets to the related net book values. If the undiscounted cash flows exceed the net book value, the long-lived assets are considered not to be impaired. If the net book value exceeds the undiscounted cash flows, an impairment loss is measured and recognized. An impairment loss is measured as the difference between the net book value and the fair value of the long-lived assets. Fair value is estimated from discounted future net cash flows (for assets held and used) or net realizable value (for assets held for sale). Changes in economic or operating conditions impacting these estimates and assumptions could result in the impairment of long-lived assets. We amortize intangible assets that have finite lives over their estimated useful lives. Goodwill and Indefinite-Lived Intangible Assets: Goodwill is recognized as the excess cost of an acquired entity over the net amount assigned to assets acquired and liabilities assumed. We do not amortize goodwill or indefinite-lived intangible assets, but review them for impairment annually in the fourth quarter or whenever events or changes in circumstances indicate that an evaluation should be completed. Goodwill is analyzed on a reporting unit basis. As previously reported in our Annual Report on Form 10-K for the year ended December 31, 2019, our reporting units, which were the same as our operating and reportable segments were Distribution and Storage Eastern Hemisphere (“D&S East”), Distribution and Storage Western Hemisphere (“D&S West”), Energy & Chemicals (“E&C”) Cryogenics and E&C FinFans. Effective October 1, 2020, we changed our reporting units, which are the same as our operating and reportable segments, to the following four segments: Cryo Tank Solutions, Heat Transfer Systems, Specialty Products and Repair, Service & Leasing. We first evaluate qualitative factors, such as macroeconomic conditions and our overall financial performance to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. We then evaluate how significant each of the identified factors could be to the fair value or carrying amount of a reporting unit and weigh these factors in totality in forming a conclusion of whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount (the “Step 0 Test”). If we determine that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, the first step of the goodwill impairment test is not necessary. Otherwise, we would proceed to the first step of the goodwill impairment test. Alternatively, we may also bypass the Step 0 Test and proceed directly to the first step of the goodwill impairment test. Under the first step (“Step 1”), we estimate the fair value of the reporting units by considering income and market approaches to develop fair value estimates, which are weighted to arrive at a fair value estimate for each reporting unit. With respect to the income approach, a model has been developed to estimate the fair value of each reporting unit. This fair value model incorporates estimates of future cash flows, estimates of allocations of certain assets and cash flows among reporting units, estimates of future growth rates and management’s judgment regarding the applicable discount rates to use to discount such estimates of cash flows. With respect to the market approach, a guideline company method is employed whereby pricing multiples are derived from companies with similar assets or businesses to estimate fair value of each reporting unit. If the fair value of the reporting unit exceeds the carrying amount of the net assets assigned to that reporting unit, then goodwill is not impaired and no further testing is required. However, if the fair value of the reporting unit is less than its carrying amount, the impairment charge is based on the excess of a reporting unit’s carrying amount over its fair value (i.e., we would measure the charge based on the result from Step 1). In order to assess the reasonableness of the calculated fair values of the reporting units, we also compare the sum of the reporting units’ fair values to the market capitalization and calculate an implied control premium (the excess of the sum of the reporting units’ fair values over the market capitalization). We evaluate the control premium by comparing it to control premiums of recent comparable transactions. If the implied control premium is not reasonable in light of this assessment, we reevaluate the fair value estimates of the reporting units by adjusting the discount rates and other assumptions as necessary. Changes to the assumptions and estimates used throughout the steps described above may result in a significantly different estimate of the fair value of the reporting units, which could result in a different assessment of the recoverability of goodwill and result in future impairment charges. With respect to indefinite-lived intangible assets, we first evaluate relevant events and circumstances to determine whether it is more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying amount. If, in weighing all relevant events and circumstances in totality, we determine that it is more likely than not that an indefinite-lived intangible asset is not impaired, no further action is necessary. Otherwise, we would determine the fair value of indefinite-lived intangible assets and perform a quantitative impairment assessment by comparing the indefinite-lived intangible asset’s fair value to its carrying amount. We may bypass such a qualitative assessment and proceed directly to the quantitative assessment. We estimate the fair value of the indefinite-lived assets using the income approach. This may include the relief from royalty method or use of a model similar to the one described above related to goodwill which estimates the future cash flows attributed to the indefinite-lived intangible asset and then discounting these cash flows back to a present value. Under the relief from royalty method, fair value is estimated by discounting the royalty savings, as well as any tax benefits related to ownership to a present value. The fair value from either approach is compared to the carrying value and an impairment is recorded if the fair value is determined to be less than the carrying value. See Note 9, “Goodwill and Intangible Assets,” for more information relating to goodwill and indefinite-lived intangible assets. Customer Advances and Billings in Excess of Contract Revenue: Our contract liabilities consist of advance customer payments, billings in excess of revenue recognized and deferred revenue. Our contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. We classify advance customer payments and billings in excess of revenue recognized as current. We classify deferred revenue as current or non-current based on the timing of when we expect to recognize revenue. The current portion of deferred revenue is included in customer advances and billings in excess of contract revenue in our consolidated balance sheets. Long-term deferred revenue is included in other long-term liabilities in our consolidated balance sheets. Convertible Debt: We determined that the conversion option within our convertible notes due November 2024 was not clearly and closely related to the debt instrument host, however, the conversion option met a scope exception to derivative instrument accounting since the conversion feature is indexed to our common stock and meets equity classification criteria. Convertible debt instruments exempt from derivative accounting and subject to cash settlement of the conversion option are recognized by bifurcating the principal balance into a liability component and an equity component where the fair value of the liability component is estimated by calculating the present value of its cash flows discounted at an interest rate that we would have received for similar debt instruments that have no conversion rights (the “straight-debt rate”), and the equity component is the residual amount, net of tax, which creates a discount on our convertible notes due November 2024. We recognize non-cash interest accretion expense related to the carrying amount of our convertible notes due November 2024 which is accreted back to its principal amount over the expected life of the debt, which is also the stated life of the debt. Subsequent to December 31, 2020, on January 1, 2021, we will adopt ASU 2020-06, “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entities Own Equity (Subtopic 815-40)” which, among other things, modifies the accounting for convertible debt and diluted earnings per share accounting treatment. For further discussion see the Recently Issued Accounting Standards (Not Yet Adopted) section toward the end of this section. Financial Instruments: The fair values of cash equivalents, accounts receivable, accounts payable and short-term bank debt approximate their carrying amount because of the short maturity of these instruments. To minimize credit risk from trade receivables, we review the financial condition of potential customers in relation to established credit requirements before sales credit is extended and monitor the financial condition and payment history of customers to help ensure timely collections and to minimize losses. Additionally, for certain domestic and foreign customers, we require advance payments, letters of credit, bankers’ acceptances, and other such guarantees of payment. Certain customers also require us to issue letters of credit or performance bonds, particularly in instances where advance payments are involved, as a condition of placing the order. Fair Value Measurements: We measure our financial assets and liabilities at fair value on a recurring basis using a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies. The three levels of inputs used to measure fair value are as follows: Level 1 — Valuations based on quoted prices for identical assets and liabilities in active markets. Level 2 — Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 — Valuations based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. Derivative Financial Instruments: We utilize certain derivative financial instruments to enhance our ability to manage foreign currency risk that exists as part of ongoing business operations. Derivative instruments are entered into for periods consistent with related underlying exposures and do not constitute positions independent of those exposures. We do not enter into contracts for speculative purposes nor are we a party to any leveraged derivative instrument. We are exposed to foreign currency exchange risk as a result of transactions in currencies other than the functional currency of certain subsidiaries. We utilize foreign currency forward purchase and sale contracts to manage the volatility associated with foreign currency purchases and certain intercompany transactions in the normal course of business. Contracts typically have maturities of less than one year. Principal currencies include the U.S. dollar, the euro, the Chinese yuan, the Czech koruna, the Australian dollar, the British pound, the Canadian dollar, the Indian rupee and the Japanese yen. Our foreign currency forward contracts do not qualify as hedges as defined by accounting guidance. Foreign currency forward contracts are measured at fair value and recorded on the consolidated balance sheets as other current liabilities or assets. Changes in their fair value are recorded in the consolidated statements of income as foreign currency gains or losses. Our foreign currency forward contracts are not exchange traded instruments and, accordingly, the valuation is performed using Level 2 inputs as defined above. Gains or losses on settled or expired contracts are recorded in the consolidated statements of income as foreign currency gains or losses. Product Warranties: We provide product warranties with varying terms and durations for the majority of our products. We estimate product warranty costs and accrue for these costs as products are sold with a charge to cost of sales. Factors considered in estimating warranty costs include historical and projected warranty claims, historical and projected cost-per-claim, and knowledge of specific product issues that are outside of typical experience. Warranty accruals are evaluated and adjusted as necessary based on actual claims experience and changes in future claim and cost estimates. Business Combinations: We account for business combinations in accordance with Accounting Standards Codification (“ASC”) ASC 805, “Business Combinations.” We recognize and measure identifiable assets acquired and liabilities assumed based on their estimated fair values. The excess of the consideration transferred over the fair value of the net assets acquired, including identifiable intangible assets, is assigned to goodwill. As additional information becomes available, we may 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. Identifiable finite-lived intangible assets generally consist of customer relationships, unpatented technology, patents and trademarks and trade names and are amortized over their estimated useful lives which generally range from 2 to 15 years. Identifiable indefinite-lived intangible assets generally consist of trademarks and trade names and are subject to impairment testing on at least an annual basis. We estimate the fair value of identifiable intangible assets under income approaches where the fair value models incorporate estimates of future cash flows, estimates of allocations of certain assets and cash flows, estimates of future growth rates, and management’s judgment regarding the applicable discount rates to use to discount such estimates of cash flows. We expense transaction related costs, including legal, consulting, accounting and other costs, in the periods in which the costs are incurred. Revenue Recognition: Revenue is recognized when (or as) we satisfy performance obligations by transferring a promised good or service, an asset, to a customer. An asset is transferred to a customer when, or as, the customer obtains control over that asset. In most contracts, the transaction price includes both fixed and variable consideration. The variable consideration contained within our contracts with customers includes discounts, rebates, refunds, credits, price concessions, incentives, performance bonuses, penalties and other similar items. When a contract includes variable consideration, we evaluate the estimate of the variable consideration to determine whether the estimate needs to be constrained; therefore, we include the variable consideration in the transaction price only to the extent that it is probable that a significant reversal of the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Variable consideration estimates are updated at each reporting date. When a contract includes multiple performance obligations, the contract price is allocated among the performance obligations based upon the stand alone selling prices. When the period between when we transfer a promised good or service to a customer and when the customer pays for that good or service is expected, at contract inception, to be one year or less, we do not adjust for the effects of a significant financing component. For brazed aluminum heat exchangers, air cooled heat exchangers, cold boxes, liquefied natural gas fueling stations, engineered tanks, and repair services, most contracts contain language that transfers control to the customer over time. For these contracts, revenue is recognized as we satisfy the performance obligations by an allocation of the transaction price to the accounting period computed using input methods such as costs incurred. Input methods recognize revenue on the basis of the entity’s efforts or inputs to the satisfaction of a performance obligation relative to the total expected inputs to the satisfaction of that performance obligation. The costs incurred input method measures progress toward the satisfaction of the performance obligation by multiplying the transaction price of the performance obligation by the percentage of incurred costs as of the balance sheet date to the total estimated costs at completion after giving effect to the most current estimates. Timing of amounts billed on contracts varies from contract to contract and could cause significant variation in working capital needs. Revisions to estimated cost to complete that result from inefficiencies in our performance that were not expected in the pricing of the contract are expensed in the period in which these inefficiencies become known. Contract modifications can change a contract’s scope, price, or both. Approved contract modifications are accounted for as either a separate contract or as part of the existing contract depending on the nature of the modification. For standard industrial gas and LNG tanks and some products identified in the prior paragraph with contract language that does not meet the over time recognition requirements, the contract with the customer contains language that transfers control to the customer at a point in time. For these contracts, revenue is recognized when we satisfy our performance obligation to the customer. Timing of amounts billed on contracts varies from contract to contract. The specific point in time when control transfers depends on the contract with the customer, contract terms that provide for a present obligation to pay, physical possession, legal title, risk and rewards of ownership, acceptance of the asset, and bill-and-hold arrangements may impact the point in time when control transfers to the customer. We recognize revenue under bill-and-hold arrangements when control transfers and the reason for the arrangement is substantive, the product is separately identified as belonging to the customer, the product is ready for physical transfer and we do not have the ability to use the product or direct it to another customer. Incremental contract costs are expensed when incurred when the amortization period of the asset that would have been recognized is one year or less; otherwise, incremental contract costs are recognized as an asset and amortized over time as promised goods and services are transferred to a customer. When losses are expected to be incurred on a contract, we recognize the entire anticipated loss in the accounting period when the loss becomes evident. The loss is recognized when the current estimate of the consideration we expect to receive, modified to include unconstrained variable consideration instead of constrained variable consideration, is less than the current estimate of total costs for the contract. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by us from a customer, are excluded from revenue. Shipping and handling fee revenues and the related expenses are reported as fulfillment revenues and expenses for all customers because we have adopted the practical expedient contained in ASC 606-10-25-18B. Therefore, all shipping and handling costs associated with outbound freight are accounted for as fulfillment costs and are included in cost of sales. Amounts billed to customers for shipping are classified as sales, and the related costs are classified as cost of sales on the consolidated statements of income. Shipping revenue of $10.6, $11.3, and $10.6 for the years ended December 31, 2020, 2019 and 2018, respectively, are included in sales. Shipping costs of $15.0, $15.8, and $15.2 for the years ended December 31, 2020, 2019 and 2018, respectively, are included in cost of sales. Cost of Sales: Manufacturing expenses associated with sales are included in cost of sales. Cost of sales includes all materials, direct and indirect labor, inbound freight, purchasing and receiving, inspection, internal transfers, and distribution and warehousing of inventory. In addition, shop supplies, facility maintenance costs, manufacturing engineering, project management, and depreciation expense for assets used in the manufacturing process are included in cost of sales on the consolidated statements of income. Selling, General and Administrative (“SG&A”) Expenses: SG&A expenses include selling, marketing, customer service, product management, design engineering, and other administrative expenses not directly supporting the manufacturing process, as well as depreciation expense associated with non-manufacturing assets. In addition, SG&A expenses include corporate operating expenses for executive management, accounting, tax, treasury, corporate development, human resources, information technology, investor relations, legal, internal audit and risk management. Advertising Costs: We incurred advertising costs of $2.7, $4.0, and $3.7 for the years ended December 31, 2020, 2019 and 2018, respectively. Such costs are expensed as incurred and included in SG&A expenses in the consolidated statements of income. Research and Development Costs: We incurred research and development costs of $9.1, $9.2, and $8.7 for the years ended December 31, 2020, 2019 and 2018, respectively. Such costs are expensed as incurred and included in SG&A expenses in the consolidated statements of income. Foreign Currency Translation: The functional currency for the majority of our foreign operations is the applicable local currency. The translation from the applicable foreign currencies to U.S. dollars is performed for asset and liability accounts using exchange rates in effect at the balance sheet date and for revenue and expense accounts using the average exchange rate during the period. The resulting translation adjustments are recorded as a component of other comprehensive income (loss) in the consolidated statements of comprehensive income. Certain of our foreign entities remeasure from local to functional currencies, which is then translated to the reporting currency of the Company. Remeasurement from local to functional currencies is included in cost of sales or foreign currency loss in the consolidated statements of income. Gains or losses resulting from foreign currency transactions are charged to net income in the consolidated statements of income as incurred. Income Taxes: The Company and its U.S. subsidiaries file a consolidated federal income tax return. Deferred income taxes are provided for temporary differences between financial reporting and the consolidated tax return in accordance with the liability method. A valuation allowance is provided against net deferred tax assets when conditions indicate that it is more likely than not that the benefit related to such assets will not be realized. In assessing the need for a valuation allowance against deferred tax assets, we consider all available evidence, including past operating results, estimates of future taxable income, and the feasibility of tax planning strategies. In the event that we change our determination as to the amount of deferred tax assets that can be realized, the valuation allowance will be adjusted with a corresponding impact to the provision for income taxes in the period in which such determination is made. We utilize a two-step approach for the recognition and measurement of uncertain tax positions. The first step is to evaluate the tax position and determine whether it is more likely than not that the position will be sustained upon examination by tax authorities. The second step is to measure the tax benefit as the largest amount that is more likely than not of being realized upon settlement. Interest and penalties related to income taxes are accounted for as income tax expense in the consolidated statements of income. We have accounted for the tax effects of the Tax Cuts and Jobs Act (“Tax Act”), which was signed into law on December 22, 2017. The Tax Act, among other things, reduced the U.S. federal corporate tax rate from 35% to 21%, requires companies to pay a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries, requires a current inclusion in U.S. federal taxable income of certain earnings of foreign corporations, and creates a new limitation on deductible interest expense. In 2017, we accounted for the tax effects of the Tax Cuts and Jobs Act under the guidance of SAB 118, on a provisional basis. In 2018, we finalized our analys |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations Cryobiological Products Divestiture On October 1, 2020, we closed on the sale of our cryobiological products business, which was formerly within our D&S West segment prior to the realignment of our segment reporting structuring in the fourth quarter of 2020 discussed in Note 4, “Segment and Geographic Information,” to Cryoport, Inc. (NASDAQ: CYRX) for net cash proceeds of $317.5, inclusive of the base purchase price of $320.0 less estimated closing adjustments of $2.5 (the “Cryobiological Divestiture”). The strategic decision to divest of our cryobiological products business reflects our strategy and capital allocation approach to focus on our core capabilities and offerings. We recorded a gain on the Cryobiological Divestiture of $224.2, net of taxes of $25.2, for the year ended December 31, 2020. Interest expense of $7.4 and $10.6 was allocated to discontinued operations for the years ended December 31, 2020, and 2019, respectively, based on interest on our term loan due June 2024 that was required to be repaid as a result of the Cryobiological Divestiture. CAIRE Divestiture On December 20, 2018, we closed the sale of our oxygen-related products business, which was reported within our prior BioMedical segment, to NGK SPARK PLUG CO., LTD. for $133.5 (the “CAIRE Divestiture”). The strategic decision to divest the oxygen-related products business reflects our strategy and capital allocation approach to focus on our core capabilities and offerings. We recorded a gain on the CAIRE Divestiture of $34.3, net of taxes of $2.6, for the year ended December 31, 2018. Interest expense of $3.2 was allocated to discontinued operations for the year ended December 31, 2018 based on the net assets of the discontinued operations as a percentage of the net assets of Chart. Both our cryobiological products business and oxygen-related products business asset groups met the criteria to be held for sale. Furthermore, we determined that the assets held for sale qualify for discontinued operations. As such, the financial results of the cryobiological products business and oxygen-related products business are reflected in our consolidated financial statements as discontinued operations for all periods presented with related operations. Furthermore, current and non-current assets and liabilities of discontinued operations for our cryobiological products business are reflected in the December 31, 2019 balance sheet. Summarized Financial Information of Discontinued Operations The following table represents income from discontinued operations, net of tax: Year Ended December 31, 2020 (1) 2019 (1) 2018 (2) Sales $ 59.9 $ 83.6 $ 237.5 Cost of sales 31.8 44.3 159.5 Selling, general and administrative expenses 7.8 10.4 41.9 Amortization expense — — 2.3 Operating income (3) 20.3 28.9 33.8 Interest expense, net 7.4 10.6 3.2 Other (income) expense, net (0.8) 0.1 0.4 Income before income taxes 13.7 18.2 30.2 Income tax (benefit) expense (1.3) 3.2 9.0 Income from discontinued operations before gain on sale of businesses 15.0 15.0 21.2 Gain on sale of businesses, net of taxes (4) 224.2 — 34.3 Income from discontinued operations, net of tax $ 239.2 $ 15.0 $ 55.5 _______________ (1) Includes results of operations for the cryobiological products business only. (2) Includes results of operations for both the cryobiological products and oxygen-related products businesses. (3) Includes depreciation expense of $0.7, $1.1 and $2.7 for the years ended December 31, 2020, 2019 and 2018, respectively. (4) Gain on sale of businesses is net of taxes of $25.2 and $2.6 for the years ended December 31, 2020 and 2018, respectively. The following table represents the assets and liabilities from discontinued operations and represents the statement of financial position for the cryobiological products business only: December 31, 2019 Accounts receivable, net $ 11.0 Inventories, net 9.4 Prepaid expenses 0.3 Other current assets 0.9 Current assets of discontinued operations $ 21.6 Property, plant, and equipment, net $ 6.8 Goodwill 33.5 Identifiable intangible assets, net 6.7 Non-current assets of discontinued operations $ 47.0 Accounts payable $ 4.2 Customer advances and billings in excess of contract revenue 0.1 Accrued salaries, wages, and benefits 1.5 Current portion of warranty reserve 0.1 Current liabilities of discontinued operations $ 5.9 Other long-term liabilities $ 0.2 Non-current liabilities of discontinued operations $ 0.2 |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segments and Geographic Information | Segment and Geographic Information Prior to October 1, 2020, the structure of our internal organization was divided into the following reportable segments, which were also our operating segments: D&S East, D&S West, E&C Cryogenics and E&C FinFans. Effective October 1, 2020, we changed our reportable segments to the following four reportable segments, which are also our operating segments: Cryo Tank Solutions, Heat Transfer Systems, Specialty Products and Repair Service & Leasing. Our Cryo Tank Solutions segment, which has principal operations in the United States, Europe and Asia and primarily serves the geographic regions of the Americas, Europe, Middle East and Asia, supplies bulk, microbulk and mobile equipment used in the storage, distribution, vaporization, and application of industrial gases. Our Heat Transfer Systems segment, which has principal operations in the United States, Europe and India and primarily serves the geographic regions of the Americas, Europe, Middle East and India, supplies mission critical engineered equipment and systems used in the separation, liquefaction, and purification of hydrocarbon and industrial gases that span gas-to-liquid applications. Our Specialty Products segment with locations globally supplies products used in our specialty market applications including hydrogen, HLNG vehicle tanks, food and beverage, space exploration, lasers, cannabis and water treatment, amongst others. Our Repair, Service & Leasing segment, which includes repair and service centers globally, provides installation, service, repair, maintenance, and refurbishment of cryogenic products as well as global equipment leasing solutions. 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. All prior period amounts presented in the tables below have been reclassified based on our current reportable segments. We evaluate performance and allocate resources based on operating income as determined in our consolidated statements of income. Segment Financial Information Year Ended December 31, 2020 Cryo Tank Solutions Heat Transfer Systems Specialty Products Repair, Service & Leasing Intersegment Eliminations Corporate Consolidated Sales $ 415.8 $ 369.8 $ 242.6 $ 158.3 $ (9.4) $ — $ 1,177.1 Depreciation and amortization expense 18.5 48.3 4.8 10.9 — 2.0 84.5 Operating income (loss) (1) (2) (3) 52.5 11.2 60.7 30.3 — (62.5) 92.2 Year Ended December 31, 2019 Cryo Tank Solutions Heat Transfer Systems Specialty Products Repair, Service & Leasing Intersegment Eliminations Corporate Consolidated Sales $ 409.9 $ 441.7 $ 207.9 $ 162.6 $ (6.6) $ — $ 1,215.5 Depreciation and amortization expense 19.5 42.0 4.9 9.7 — 1.6 77.7 Operating income (loss) (1) (4) 25.7 17.7 48.1 27.9 — (67.4) 52.0 Year Ended December 31, 2018 Cryo Tank Solutions Heat Transfer Systems Specialty Products Repair, Service & Leasing Intersegment Eliminations Corporate Consolidated Sales $ 371.4 $ 289.8 $ 184.5 $ 160.4 $ (2.2) $ — $ 1,003.9 Depreciation and amortization expense 13.9 21.7 4.7 7.9 — 1.5 49.7 Operating income (loss) (1) (5) (6) 41.1 8.7 44.8 21.2 — (51.3) 64.5 _______________ (1) Restructuring costs (credits) for the years ended: • December 31, 2020 were $13.6 ($2.7 – Cryo Tank Solutions $7.4 – Heat Transfer Systems, $0.7 – Specialty Products, $0.2 – Repair, Service & Leasing and $2.6 – Corporate); • December 31, 2019 were $15.6 ($9.1 – Cryo Tank Solutions, $4.5 – Heat Transfer Systems, $0.3 – Specialty Products, $1.5 – Repair, Service & Leasing and $0.2 – Corporate); and • December 31, 2018 were $4.3 ($1.7 – Cryo Tank Solutions, $0.7 – Heat Transfer Systems, $(0.3) – Specialty Products, $(0.1) – Repair, Service & Leasing and $2.3 – Corporate). (2) Includes transaction-related costs of $2.6 for the year ended December 31, 2020, which were mainly related to the Sustainable Energy Solutions, Inc., BlueInGreen, LLC and Alabama Trailers acquisitions. (3) Includes $16.0 impairment of our trademarks and trade names indefinite-lived intangible assets related to the AXC business in our Heat Transfer Systems segment. (4) Includes transaction-related costs of $5.4 for the years ended December 31, 2019, which were mainly related to the AXC acquisition. Includes transaction-related costs of $4.3 related to integration activities for previous acquisitions for the year ended December 31, 2019. (5) Includes transaction-related costs of $2.1 recorded in Corporate for the year ended December 31, 2018. (6) During the year ended December 31, 2018, we recorded net severance costs of $2.3 in Corporate primarily related to headcount reductions associated with a previous strategic realignment of our segment structure, which includes $1.8 in payroll severance costs partially offset by a $0.9 credit due to related share-based compensation forfeitures for 2018. Includes net severance costs of $1.4 related to the departure of our former CEO, which includes $3.2 in payroll severance costs partially offset by a $1.8 credit due to related share-based compensation forfeitures for 2018. Sales by Geography Net sales by geographic area are reported by the destination of sales. Year Ended December 31, 2020 Cryo Tank Solutions Heat Transfer Systems Specialty Products Repair, Service & Leasing Intersegment Eliminations Consolidated North America (1) $ 168.0 $ 259.4 $ 98.9 $ 111.2 $ (4.4) $ 633.1 Europe, Middle East, Africa and India 165.3 39.3 121.8 38.1 (3.5) 361.0 Asia-Pacific (2) 76.1 69.3 21.4 8.4 (1.4) 173.8 Rest of the World 6.4 1.8 0.5 0.6 (0.1) 9.2 Total $ 415.8 $ 369.8 $ 242.6 $ 158.3 $ (9.4) $ 1,177.1 Year Ended December 31, 2019 Cryo Tank Solutions Heat Transfer Systems Specialty Products Repair, Service & Leasing Intersegment Eliminations Consolidated North America (1) $ 173.6 $ 311.2 $ 100.4 $ 128.4 $ (3.4) $ 710.2 Europe, Middle East, Africa and India 163.8 71.6 91.2 23.7 (2.2) 348.1 Asia-Pacific (2) 67.2 57.3 15.6 9.7 (0.9) 148.9 Rest of the World 5.3 1.6 0.7 0.8 (0.1) 8.3 Total $ 409.9 $ 441.7 $ 207.9 $ 162.6 $ (6.6) $ 1,215.5 Year Ended December 31, 2018 Cryo Tank Solutions Heat Transfer Systems Specialty Products Repair, Service & Leasing Intersegment Eliminations Consolidated North America (1) $ 164.0 $ 237.1 $ 100.5 $ 122.6 $ (1.0) $ 623.2 Europe, Middle East, Africa and India 120.0 24.1 65.2 30.0 (0.9) 238.4 Asia-Pacific (2) 83.8 27.2 18.3 7.1 (0.3) 136.1 Rest of the World 3.6 1.4 0.5 0.7 — 6.2 Total $ 371.4 $ 289.8 $ 184.5 $ 160.4 $ (2.2) $ 1,003.9 (1) Consolidated sales in the United States were $576.8, $638.0 and $570.6 for the twelve month periods ending December 31, 2020, 2019 and 2018, respectively and represent 49.0%, 52.5% and 56.8% of consolidated sales for the same periods, respectively. (2) Consolidated sales in China were $100.7, $80.5 and $101.6 for the twelve months ended December 31, 2020, 2019 and 2018, respectively and represent 8.6%, 6.6% and 10.1% of consolidated sales for the same periods, respectively. In both 2020 and 2019, no single customer accounted for more than 10% of consolidated sales. Sales to Linde exceeded 10% of consolidated sales in 2018 on a combined basis and represented approximately $119.9 or 11.9% of consolidated sales in 2018 (attributable to all of our segments). Total Assets Corporate assets mainly include cash and cash equivalents and long-term deferred income taxes as well as certain corporate-specific property, plant and equipment, net and certain investments. Our allocation methodology for property, plant and equipment, net of the reportable segments differs from our allocation method of depreciation expense of a reportable segment and therefore, depreciation expense does not entirely align with the related depreciable assets of the reportable segments. Furthermore, since finite-lived intangible assets are excluded from total assets of reportable segments while amortization expense is allocated to each of our reportable segments, amortization expense by segment inherently does not align with the related amortizable intangible assets of the reportable segments. December 31, 2020 2019 Cryo Tank Solutions $ 399.2 $ 374.4 Heat Transfer Systems 247.2 328.9 Specialty Products 178.3 109.7 Repair, Service & Leasing 142.6 106.6 Total assets of reportable segments 967.3 919.6 Goodwill (1) 865.9 811.4 Identifiable intangible assets, net (1) 493.1 522.4 Corporate 244.2 159.4 Discontinued operations — 68.6 Total assets $ 2,570.5 $ 2,481.4 _______________ (1) See Note 9, “Goodwill and Intangible Assets,” for further information related to goodwill and identifiable intangible assets, net. Geographic Information Property, plant and equipment, net as of December 31, 2020 2019 United States $ 223.9 $ 222.2 Foreign Italy 69.9 56.4 China 61.5 64.2 Czech Republic 29.0 25.8 Germany 16.1 15.5 India 14.1 13.7 Total Foreign 190.6 175.6 Total $ 414.5 $ 397.8 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregation of Revenue The following tables represent a disaggregation of revenue by timing of revenue along with the reportable segment for each category: Year Ended December 31, 2020 Cryo Tank Solutions Heat Transfer Systems Specialty Products Repair, Service & Leasing Intersegment Eliminations Consolidated Point in time $ 378.3 $ 28.6 $ 184.6 $ 110.3 $ (4.5) $ 697.3 Over time 37.5 341.2 58.0 48.0 (4.9) 479.8 Total $ 415.8 $ 369.8 $ 242.6 $ 158.3 $ (9.4) $ 1,177.1 Year Ended December 31, 2019 Cryo Tank Solutions Heat Transfer Systems Specialty Products Repair, Service & Leasing Intersegment Eliminations Consolidated Point in time $ 385.2 $ 26.3 $ 161.2 $ 117.6 $ (5.2) $ 685.1 Over time 24.7 415.4 46.7 45.0 (1.4) 530.4 Total $ 409.9 $ 441.7 $ 207.9 $ 162.6 $ (6.6) $ 1,215.5 Year Ended December 31, 2018 Cryo Tank Solutions Heat Transfer Systems Specialty Products Repair, Service & Leasing Intersegment Eliminations Consolidated Point in time $ 366.9 $ 60.3 $ 150.3 $ 102.5 $ (2.2) $ 677.8 Over time 4.5 229.5 34.2 57.9 — 326.1 Total $ 371.4 $ 289.8 $ 184.5 $ 160.4 $ (2.2) $ 1,003.9 Refer to Note 4, “Segment and Geographic Information,” for a table of revenue by reportable segment disaggregated by geography. Contract Balances The following table represents changes in our contract assets and contract liabilities balances: December 31, 2020 December 31, 2019 Year-to-date Change ($) Year-to-date Change (%) Contract assets Accounts receivable, net of allowances $ 200.8 $ 191.6 $ 9.2 4.8 % Unbilled contract revenue 79.4 86.1 (6.7) (7.8) % Contract liabilities Customer advances and billings in excess of contract revenue $ 118.9 $ 127.7 $ (8.8) (6.9) % Long-term deferred revenue 1.9 0.8 1.1 137.5 % Revenue recognized for the years ended December 31, 2020 and 2019, that was included in the contract liabilities balance at the beginning of each year was $101.2 and $113.2, respectively. The amount of revenue recognized during the year ended December 31, 2020 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. Long-term deferred revenue is included in other long-term liabilities in the consolidated balance sheets for the years ended December 2020 and 2019. 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 December 31, 2020, the estimated revenue expected to be recognized in the future related to remaining performance obligations was $810.0. We expect to recognize revenue on approximately 81% of the remaining performance obligations over the next 12 months and 9% of the remaining performance obligations over the next 13 to 24 months, with the remaining balance recognized thereafter. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2020 | |
Investments, All Other Investments [Abstract] | |
Investments | Investments The following table summarizes the components of investments: December 31, 2020 2019 Investment in equity securities $ 73.6 $ 6.9 Equity investments 5.3 6.5 Total investments $ 78.9 $ 13.4 Investment in equity securities During the fourth quarter of 2020, we completed an investment in HTEC Hydrogen Technology & Energy Corporation (“HTEC”) in the amount of CAD20 million ($15.7) for 15.6% of its capital stock on a fully-diluted basis. This investment was measured at cost as of December 31, 2020. HTEC designs, builds, and operates hydrogen fuel supply solutions to support the deployment of hydrogen fuel cell electric vehicles. It has significant hydrogen development experience in the Canadian market, with signed contracts for numerous projects across the country. Also, during the fourth quarter of 2020, we made an investment in McPhy (Euronext Paris: MCPHY – ISIN; FR0011742329) by subscribing to 1,276,595 shares for 30 million euros ($35.1). As of December 31, 2020 we hold 4.6% of the capital of McPhy and, the value of the investment was $53.8, which reflects a $17.0 unrealized gain recognized from the subsequent mark-to-market for the year ended December 31, 2020. Gains and losses for this investment in equity securities were recorded in unrealized (gain) loss on investment in equity securities on the consolidated statement of income and comprehensive income during the year ended December 31, 2020. During the third quarter of 2019, we made an investment in Stabilis Energy, Inc. (“Stabilis”) by converting $7.0 of a note receivable from Stabilis into an investment in their company stock. As of December 31, 2020, the value of the investment was $4.1, which reflects a $2.9 unrealized loss recognized from the subsequent mark-to-market for the year ended December 31, 2020. As of December 31, 2019, the value of the investment was $6.9, which reflected a $0.1 unrealized loss recognized from the subsequent mark-to-market for the year ended December 31, 2019. Gains and losses for this investment in equity securities were recorded in unrealized (gain) loss on investment in equity securities on the consolidated statements of income and comprehensive income during the years ended December 31, 2020 and 2019. We measure our investments at fair value on a recurring basis. Furthermore, we categorize our investments according to the fair value hierarchy as defined in Note 2, “Significant Accounting Policies.” Since quoted prices in an active market are observable, we measured the fair value of our investment in McPhy as a Level 1 investment in the December 31, 2020 consolidated balance sheet. We measured the fair value of our investment in Stabilis as a Level 2 investment in the consolidated balance sheets for the periods presented because we are able to observe quoted prices for identical assets in markets that are not active, i.e., Stabilis common stock trades in a dealer market as defined in ASC Topic 820 “Fair Value Measurement,” and by nature, dealers stand ready to trade, yet the market is not active. Lastly, we measure our investment in HTEC at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. As such, we consider our investment in HTEC a Level 3 investment in the December 31, 2020 consolidated balance sheet. We reassess measurement options for the HTEC investment on a quarterly basis. Equity method accounting investments Our equity investments accounted for under the equity method of accounting include a 50% ownership interest in a joint venture with Hudson Products de Mexico, S.A. de C.V., which totaled $2.8 and $2.9 for the years ended December 31, 2020 and 2019, respectively. This investment is operated and managed by our joint venture partner and as such, we do not have control over the joint venture and therefore is not consolidated. Our equity in earnings from this investment was $0.3, $0.2 and $0.6 for the years ended December 31, 2020, 2019 and 2018, respectively. Earnings in this investment are classified in unrealized (gain) loss on investment in equity securities in the consolidated statements of income for the year ended December 31, 2020. Earnings in this investment is classified in SG&A expenses in the consolidated statements of income for the years ended 2019 and 2018. Additionally, we have a 25% ownership interest in Liberty LNG which we invested in during the third quarter of 2019 which totaled $2.1 and $3.3 at December 31, 2020 and 2019, respectively. Losses for 2020 were $1.0 and earnings for 2019 were not material. Earnings in this investment are classified in unrealized (gain) loss on investment in equity securities in the consolidated statements of income for the years ended December 31, 2020 and 2019. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The following table summarizes the components of inventory: December 31, 2020 2019 Raw materials and supplies $ 124.7 $ 97.9 Work in process 57.8 47.2 Finished goods 65.9 64.9 Total inventories, net $ 248.4 $ 210.0 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment The following table summarizes the components of property, plant and equipment: December 31, Classification Estimated Useful Life 2020 2019 Land and buildings 20-35 years $ 346.5 $ 323.0 Machinery and equipment 3-12 years 214.4 198.6 Computer equipment, furniture and fixtures 3-7 years 40.8 45.5 Right-of-use assets 44.4 42.3 Construction in process 18.2 21.0 Total property, plant and equipment, gross 664.3 630.4 Less: accumulated depreciation (249.8) (232.6) Total property, plant and equipment, net $ 414.5 $ 397.8 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The following table represents the activity in goodwill net of accumulated goodwill impairment loss (“goodwill, net”) and accumulated goodwill impairment loss by segment for 2020 (1) : D&S East D&S West E&C Cryogenics E&C FinFans Cryo Tank Solutions Heat Transfer Systems Specialty Products Repair, Service & Leasing Consoli-dated Goodwill, net balance at December 31, 2019 $ 117.0 $ 118.6 $ 176.2 $ 399.6 $ — $ — $ — $ — $ 811.4 Foreign currency translation adjustments and other 4.5 — — 1.3 — — — — 5.8 Purchase price adjustments — — — 0.4 — 0.4 Goodwill, net balance at September 30, 2020 121.5 118.6 176.2 401.3 — — — — 817.6 Reallocation, D&S East (121.5) — — — 43.3 — 64.6 13.6 — Reallocation, D&S West — (118.6) — — 43.2 — 63.6 11.8 — Reallocation, E&C Cryogenics — — (176.2) — — 137.0 5.6 33.6 — Reallocation, E&C FinFans — — — (401.3) — 295.6 — 105.7 — Goodwill, net balance at October 1, 2020 — — — — 86.5 432.6 133.8 164.7 817.6 Foreign currency translation adjustments and other — — — — 6.7 2.6 (0.2) 0.4 9.5 Goodwill acquired during the period — — — — — — 38.8 — 38.8 Goodwill, net balance at December 31, 2020 $ — $ — $ — $ — $ 93.2 $ 435.2 $ 172.4 $ 165.1 $ 865.9 Accumulated goodwill impairment loss at December 31, 2019 $ — $ 64.4 $ 40.9 $ 23.7 $ — $ — $ — $ — $ 129.0 Accumulated goodwill impairment loss at September 30, 2020 — 64.4 40.9 23.7 — — — — 129.0 Reallocation, D&S West — (64.4) — — 23.5 — 34.5 6.4 — Reallocation, E&C Cryogenics — — (40.9) — — 31.8 1.3 7.8 — Reallocation, E&C FinFans — — — (23.7) — 17.5 — 6.2 — Accumulated goodwill impairment loss at December 31, 2020 $ — $ — $ — $ — $ 23.5 $ 49.3 $ 35.8 $ 20.4 $ 129.0 _______________ (1) The prior segments’ goodwill and accumulated goodwill impairment loss at December 31, 2019 were reassigned to four new reporting units, Cryo Tank Solutions, Heat Transfer Systems, Specialty Products and Repair, Service & Leasing, based on their relative fair values as of October 1, 2020. The following table represents the activity in goodwill, net and accumulated goodwill impairment loss by segment for 2019 (1) : D&S East D&S West E&C E&C Cryogenics E&C FinFans Consolidated Goodwill, net balance at December 31, 2018 $ 73.6 $ 117.8 $ 295.8 $ — $ — $ 487.2 Reallocation, E&C — — (295.8) 183.5 112.3 — Foreign currency translation adjustments and other (0.9) — — (0.6) (0.2) (1.7) Goodwill acquired during the year — — — — 287.5 287.5 Purchase price adjustments (2) 44.3 0.8 — (6.7) — 38.4 Goodwill, net balance at December 31, 2019 $ 117.0 $ 118.6 $ — $ 176.2 $ 399.6 $ 811.4 Accumulated goodwill impairment loss at December 31, 2018 $ — $ 64.4 $ 64.6 $ — $ — $ 129.0 Accumulated goodwill impairment loss at December 31, 2019 $ — $ 64.4 $ — $ 40.9 $ 23.7 $ 129.0 _______________ (1) The prior E&C segment goodwill and accumulated goodwill impairment loss at December 31, 2018 were reassigned to two reporting units, E&C Cryogenics and E&C FinFans, based on their relative fair values as of July 1, 2019. (2) During 2019, we recorded purchase price adjustments related to previous acquisitions including an increase of $44.3 in D&S East, a decrease of $6.7 in E&C Cryogenics and an increase of $0.8 in D&S West. As discussed in Note 4, “Segment and Geographic Information,” we reorganized our reporting structure such that the composition of our reporting units changed effective October 1, 2020, which was also the goodwill reassignment date. We determined the fair values of each of our prior reporting units as of the goodwill reassignment date to assess whether there was an indication of impairment before and after the reassignment. We performed a goodwill impairment Step 1 test, as defined in Note 2, “Significant Accounting Policies” on each of our previous reporting units prior to the goodwill reassignment and determined that their fair values were in excess of their respective carrying amounts as of October 1, 2020. Furthermore, we performed a goodwill impairment Step 1 test on the new reporting units after the goodwill reassignment and determined that their fair values were in excess of their respective carrying amounts as of October 1, 2020. On September 30, 2020, we allocated a portion of the D&S West reporting unit’s goodwill to the cryobiological products business asset group on a relative fair value basis. Refer to Note 3, “Discontinued Operations” for further information. We determined the fair value of D&S West reporting unit as of the goodwill reassignment date to assess whether there was an indication of impairment before the reassignment. We performed an interim goodwill impairment Step 1 test, as defined in our Note 2, “Significant Accounting Policies” on the D&S West reporting unit prior to the goodwill reassignment and determined that its fair value was substantially in excess of its carrying amount as of September 30, 2020. Furthermore, when a portion of goodwill is allocated to an asset group to be disposed of, we test the goodwill remaining in the portion of the reporting unit to be retained for impairment. We elected to perform an interim goodwill Step 0 Test, as defined in Note 2, “Significant Accounting Policies” on the D&S West reporting unit after the goodwill reassignment. As a result of the Step 0 Test, no impairment of the D&S West reporting unit after the goodwill reassignment was indicated. Intangible Assets We recorded an impairment loss of $16.0 during 2020 relative to our $55.0 trademarks and trade names indefinite-lived intangible asset of our AXC business (“AXC Intangible Asset”) in our Heat Transfer Systems segment. Industry-wide softness in demand for midstream and upstream compression equipment represented impairment indicators requiring us to re-evaluate the fair value of the AXC Intangible Asset. We determined the fair value of the AXC Intangible Asset under the relief-from-royalty method and conducted an impairment test as defined in Note 2, “Significant Accounting Policies.” We determined that the fair value of the AXC Intangible Asset was $39.0 and impaired the AXC Intangible Asset by a value equal to the difference in the carrying amount and calculated fair value. 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) : December 31, 2020 December 31, 2019 Weighted-average Estimated Useful Life Gross Accumulated Gross Accumulated Finite-lived intangible assets: Customer relationships 13 years $ 302.5 $ (59.9) $ 380.3 $ (115.0) Unpatented technology 13 years 110.4 (22.3) 90.1 (13.0) Patents and other 5 years 8.4 (1.8) 20.9 (9.8) Trademarks and trade names 14 years 3.6 (1.4) 2.4 (1.2) Land rights 50 years 11.1 (1.4) 11.0 (1.2) Total finite-lived intangible assets 13 years $ 436.0 $ (86.8) $ 504.7 $ (140.2) Indefinite-lived intangible assets: Trademarks and trade names $ 143.9 $ — $ 157.9 $ — Total intangible assets $ 579.9 $ (86.8) $ 662.6 $ (140.2) _______________ (1) Amounts include the impact of foreign currency translation. Fully amortized or impaired amounts are written off. Amortization expense for intangible assets subject to amortization was $45.7, $39.8 and $21.9 for the years ended December 31, 2020, 2019 and 2018, respectively. We estimate amortization expense to be recognized during the next five years as follows: For the Year Ending December 31, 2021 $ 36.7 2022 34.5 2023 34.4 2024 34.0 2025 33.1 See Note 13, “Business Combinations,” for further information related to intangible assets acquired. 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 the 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 consolidated balance sheets as follows: December 31, 2020 2019 Current $ 0.5 $ 0.5 Long-term 7.3 7.2 Total China Government Grants $ 7.8 $ 7.7 We also received government grants from certain local jurisdictions within the United States, which are recorded in other assets in the consolidated balance sheets and were not significant for the periods presented. |
Debt and Credit Arrangements
Debt and Credit Arrangements | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt and Credit Arrangements | Debt and Credit Arrangements Summary of Outstanding Borrowings The following table represents the components of our borrowings: December 31, 2020 2019 Senior secured revolving credit facilities and term loan: Term loan due June 2024 (1) $ 103.1 $ 447.2 Senior secured revolving credit facility due June 2024 (2) 123.5 119.0 Unamortized debt issuance costs (5.0) (5.5) Senior secured revolving credit facility and term loan, net of debt issuance costs 221.6 560.7 Convertible notes due November 2024: Principal amount 258.8 258.8 Unamortized discount (34.8) (42.8) Unamortized debt issuance costs (3.1) (3.8) Convertible notes due November 2024, net of unamortized discount and debt issuance costs 220.9 212.2 Foreign facilities — 4.4 Total debt, net of unamortized discount and debt issuance costs 442.5 777.3 Less: current maturities (3) 220.9 16.3 Long-term debt $ 221.6 $ 761.0 _______________ (1) As of December 31, 2020, there was $103.1 in borrowings outstanding under the term loan bearing an interest rate of 2.50%. (2) The senior secured revolving credit facility due 2024 includes $100.0 sub limit for letters of credit, a $250.0 sub limit for discretionary letters of credit and a $50.0 sub-limit for swingline loans. As of December 31, 2020, there was $123.5 in borrowings outstanding under the senior secured revolving credit facility due 2024 bearing a weighted-average interest rate of 2.1% and $63.3 in letters of credit and bank guarantees outstanding supported by the senior secured revolving credit facility due 2024. As of December 31, 2020, the senior secured revolving credit facility due 2024 had availability of $363.2. (3) Current maturities includes $220.9 current convertible notes at December 31, 2020. As of December 31, 2020, total scheduled maturities were $485.4. There are no scheduled principal payments for any of our debt instruments until June 2024. The $258.8 principal balance of the convertible notes due November 2024 will mature on November 15, 2024, yet the carrying amount of the convertible notes due November 2024 is treated as current for financial statement reporting purposes. Cash paid for interest during the years ended December 31, 2020, 2019 and 2018 was $18.1, $17.7, and $15.9, respectively. Senior Secured Revolving Credit Facility and Term Loan Our Fourth Amended and Restated Credit Agreement as amended includes a senior secured revolving credit facility (the “SSRCF”) and a term loan (together, the “2024 Credit Facilities”). The 2024 Credit Facilities mature on June 14, 2024. • The SSRCF has a borrowing capacity of $550.0. • The term loan has a borrowing capacity of $450.0. • The 2024 Credit Facilities bear interest at a base rate margin determined on a leveraged-based scale which ranges from 25 to 125 basis points for alternative base rate loans and 125 to 225 basis points for LIBOR loans. • Interest and fees are payable on a quarterly basis (or if earlier, at the end of each interest period for LIBOR loans). Significant financial covenants for the 2024 Credit Facilities include financial maintenance covenants that, as of the last day of any fiscal quarter ending on and after June 30, 2019, (i) require the ratio of the amount of Chart and its subsidiaries’ consolidated total net indebtedness to consolidated EBITDA to be less than specified maximum ratio levels and (ii) require the ratio of the amount of Chart and its subsidiaries’ consolidated EBITDA to consolidated cash interest expense to be greater than a specified minimum ratio level. The 2024 Credit Facilities include 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 December 31, 2020, we were in compliance with all covenants. The 2024 Credit Facilities also contain customary events of default. If such an event of default occurs, the lenders thereunder would be entitled to take various actions, including the acceleration of amounts due and all actions permitted to be taken by a secured creditor. The 2024 Credit Facilities are guaranteed by Chart 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 Fourth Amended and Restated Credit Agreement) that are owned by U.S. subsidiaries. Deferred debt issuance costs associated with the term loan were $7.0 and $6.1 at December 31, 2020 and 2019, respectively. Deferred debt issuance costs associated with the term loan are included in long-term debt in the consolidated balance sheets at December 31, 2020 and 2019, and are being amortized over its five-year term beginning in July 2019. Unamortized debt issuance costs associated with the term loan were $5.0 and $5.5 at December 31, 2020 and 2019, respectively. Deferred debt issuance costs associated with the SSRCF as amended were $11.1 and $10.0 at December 31, 2020 and 2019, respectively. Deferred debt issuance costs associated with the SSRCF are presented in other assets in the consolidated balance sheets at December 31, 2020 and 2019 and are being amortized over the term of the SSRCF. Unamortized debt issuance costs associated with the SSRCF were $7.8 and $9.5 at December 31, 2020 and 2019, respectively. The following table summarizes interest expense and financing costs amortization related to the 2024 Credit Facilities and our previous senior secured revolving credit facility: Year Ended December 31, 2020 2019 2018 Interest expense, term loan due June 2024 $ 4.8 $ 3.1 $ — Interest expense, senior secured revolving credit facilities 2.2 2.2 11.8 Interest expense, senior secured revolving credit facilities and term loan due June 2024 $ 7.0 $ 5.3 $ 11.8 Financing costs amortization, senior secured revolving credit facilities and term loan due 2024 $ 3.6 $ 2.0 $ 0.6 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. On December 31, 2020, we entered into the First Supplemental Indenture (the “Supplemental Indenture”) to the Indenture, between Chart and Wells Fargo Bank, National Association, as trustee, governing the 2024 Notes. Pursuant to the Supplemental Indenture, Chart irrevocably elected (i) to eliminate Chart’s option to elect Physical Settlement (as defined in the Indenture) on any conversion of 2024 Notes that occurs on or after the date of the Supplemental Indenture and (ii) that, with respect to any Combination Settlement (as defined in the Indenture) for a conversion of 2024 Notes, the Specified Dollar Amount (as defined in the Indenture) that will be settled in cash per $1,000 principal amount of the Notes shall be no lower than $1,000. Prior to December 31, 2020, a conversion of the 2024 Notes could have been 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). After December 31, 2020, a conversion of the 2024 Notes may be settled in either (1) cash or (2) cash for the principal amount of the 2024 Notes and any combination of cash and shares for the excess settlement amount above the principal amount of the 2024 Notes, at our election (subject to, and in accordance with, the settlement provisions of the Indenture and Supplemental 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. Because our closing common stock price of $117.79 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 $260.2 at December 31, 2020. 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 As of January 1, 2021, the 2024 Notes were convertible at the option of the shareholders. This conversion right, which will remain available until March 31, 2021, 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 trading days during the last 30 trading days ending on December 31, 2020. Since the holders of the 2024 Notes could potentially convert their 2024 Notes at their option during the three month period subsequent to December 31, 2020, the $220.9 long-term liability component of the 2024 Notes was classified as a current liability in the consolidated balance sheet at December 31, 2020. We will reassess the convertibility of the 2024 Notes and the related balance sheet classification on a quarterly basis. There have been no conversions as of the date of this filing. 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 (as defined in Note 2) 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 in the consolidated balance sheets. 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: Year Ended December 31, 2020 2019 2024 Notes, interest accretion of convertible notes discount $ 8.0 $ 7.6 2024 Notes, 1.0% contractual interest coupon 2.6 2.6 2024 Notes, total interest expense $ 10.6 $ 10.2 2024 Notes, financing costs amortization $ 0.7 $ 0.7 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. Foreign Facilities In various markets where we do business, we have local credit facilities to meet local working capital demands, fund letters of credit and bank guarantees, and support other short-term cash requirements. The facilities generally have variable interest rates and are denominated in local currency but may, in some cases, facilitate borrowings in multiple currencies. As of December 31, 2019, we had U.S. dollar (“USD”) equivalent $4.4 in borrowings outstanding under these facilities (none outstanding as of December 31, 2020). The weighted-average interest rate on these borrowings was 1.3% as of December 31, 2019. As of December 31, 2020 and 2019, we had additional capacity of USD equivalent $77.4 and $23.1, respectively. Chart had foreign letters of credit and bank guarantees totaling USD equivalent $47.7 and $12.6 as of December 31, 2020 and 2019, respectively. Letters of Credit Chart Energy & Chemicals, Inc., a wholly-owned subsidiary of the Company, had $1.0 in deposits in a bank outside of the SSRCF to secure letters of credit at both December 31, 2020 and 2019. The deposits are treated as restricted cash and restricted cash equivalents in the consolidated balance sheets ($1.0 in other current assets at December 31, 2020 and $1.0 in other assets at December 31, 2019). Fair Value Disclosures The fair value of the 2024 Notes was approximately 210% and 132% of their par value as of December 31, 2020 and 2019, respectively. The 2024 Notes are actively quoted instruments and, accordingly, the fair value of the 2024 Notes was determined using Level 1 inputs. |
Financial Instruments and Deriv
Financial Instruments and Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments and Derivative Financial Instruments | Financial Instruments and Derivative Financial Instruments Concentrations of Credit Risks: We sell our products to gas producers, distributors and end-users across the industrial gas, hydrocarbon, chemical processing, respiratory therapy, and cryobiological storage industries in countries all over the world. Approximately 51%, 48%, and 43% of sales were to customers in foreign countries in 2020, 2019 and 2018, respectively. In 2020 and 2019, no single customer accounted for more than 10% of consolidated sales. Sales to Linde exceeded 10% of consolidated sales in 2018 on a combined basis and represented approximately $119.9 or 11.9% of consolidated sales in 2018 (attributable to all of our segments). Sales to our top ten customers accounted for 42%, 34% and 41% of consolidated sales in 2020, 2019 and 2018, respectively. Our sales to particular customers fluctuate from period to period, but the large industrial gas producer and distributor customers of ours tend to be a consistently large source of revenue for us. We are subject to concentrations of credit risk with respect to our cash and cash equivalents, restricted cash and restricted cash equivalents and forward foreign currency exchange contracts. To minimize credit risk from these financial instruments, we enter into arrangements with major banks and other quality financial institutions and invest only in high-quality instruments. We do not expect any counterparties to fail to meet their obligations. The changes in fair value with respect to our foreign currency forward contracts generated a net gain of $1.3 for the year ended December 31, 2020, a net gain of $0.7 for the year ended December 31, 2019 and a net loss of $0.8 for the year ended December 31, 2018. Changes in the fair value of our foreign currency forward contracts are recorded in the consolidated statements of income as foreign currency gains or losses. |
Product Warranties
Product Warranties | 12 Months Ended |
Dec. 31, 2020 | |
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 consolidated statements of income. Product warranty claims not expected to occur within one year are included as part of other long-term liabilities in the consolidated balance sheets. The following table represents changes in our consolidated warranty reserve: Year Ended December 31, 2020 2019 2018 Beginning balance $ 11.5 $ 8.7 $ 11.6 Issued – warranty expense 6.6 7.4 4.9 Change in estimate – warranty expense — — (1.6) Warranty usage (6.2) (4.6) (6.2) Ending balance $ 11.9 $ 11.5 $ 8.7 |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations Sustainable Energy Solutions, Inc. Acquisition On December 23, 2020, we completed the acquisition of Sustainable Energy Solutions, Inc. (“SES”). SES’s Cryogenic Carbon Capture™ (CCC) technology eliminates most emissions from fossil fuels while enabling better use of intermittent renewables through grid-scale energy storage. The stock purchase was completed for a closing purchase price of $20.0 in cash at closing, subject to a post closing working capital adjustment, plus a potential earn-out not to exceed $25.0. The preliminary estimated fair value of the net assets acquired and goodwill at the date of acquisition was $13.4 and $24.0, respectively. Net assets includes $17.3 in intangible assets, which consists of unpatented technology, trade names and non-compete contracts. BlueInGreen, LLC Acquisition On November 3, 2020, we completed the acquisition of BlueInGreen, LLC (“BIG”), a leading dissolved-gas expert providing custom-engineered solutions for water treatment and industrial process applications that delivers tangible economic, social and environmental value. The stock purchase was completed for a purchase price of $20.0 in cash at closing (subject to customary adjustments), plus a potential earn-out not to exceed $6.0. The preliminary estimated fair value of the net assets acquired and goodwill at the date of acquisition was $8.8 and $14.8, respectively. Net assets includes $6.8 in intangible assets, which consists of non-compete contracts, unpatented technology, trademarks and trade names, certifications and licenses and customer relationships. Alabama Trailers Acquisition On October 13, 2020, we completed the acquisition of the Theodore, Alabama cryogenic trailer and hydrogen trailer (transport) assets of Worthington Industries, Inc. (NYSE: WOR) for $10.0 in cash (“Alabama Trailers”). Worthington Industries, Inc. made the decision to exit the hydrogen trailer business. With few buyers of this specialized business, Worthington Industries, Inc. sold the trailer business to us at a discount. As a result of the acquisition, we recorded a bargain purchase gain of $5.0. Alabama Trailers designs, manufactures and sells cryogenic trailers and hydrogen trailers used in industrial gas and energy applications. The purchase price allocations of SES, BIG and Alabama Trailers are preliminary and are based on provisional fair values and subject to revision as we finalize third-party valuations and other analyses. Final determination of the fair values may result in further adjustments to the value of net assets acquired. Air-X-Changers Acquisition On July 1, 2019, we completed the acquisition of AXC pursuant to the previously disclosed Asset Purchase Agreement dated as of May 8, 2019 (the “AXC acquisition”). The purchase price for AXC was $599.7, including post-closing purchase price adjustments with respect to working capital. We paid $592.0 of the purchase price at closing and the final working capital adjustment of $7.7 was paid during the third quarter of 2019. We financed the purchase price for the AXC acquisition with proceeds from borrowings under the 2024 Credit Facilities and a public offering of Chart’s common stock in 2019. See Note 10, “Debt and Credit Arrangements” and Note 14, “Accumulated Other Comprehensive Income (Loss) and Equity” for further information. AXC is a leading supplier of custom engineered and manufactured air cooled heat exchangers for the natural gas compression and processing industry and refining and petrochemical industry in the United States. The air cooled heat exchangers offered by AXC are used in conditioning natural gas during recovery, compression and transportation from underground reserves through major pipeline distribution channels. In addition to natural gas compression and processing, AXC’s products are also used in the turbine lube oil cooling, landfill gas compression and liquids cooling industries. AXC’s end markets include process industries, power generation and refineries. AXC was combined with Chart’s Hudson Products and Chart Cooler Service businesses and its results are included in our Heat Transfer Systems segment from the date of acquisition. As defined in our significant policies for fair value measurements in Note 2, “Significant Accounting Policies” we allocated the acquisition consideration to tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The 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. We estimated the fair value of acquired unpatented technology and trademarks and trade names using the relief from royalty method. The fair values of acquired customer backlog and customer relationships were estimated using the multi-period excess earnings method. Under both the relief from royalty and multi-period excess earnings methods, the fair value models incorporated estimates of future cash flows, estimates of allocations of certain assets and cash flows, estimates of future growth rates, and management’s judgment regarding the applicable discount rates to use to discount such estimates of cash flows. The estimated useful lives of identifiable finite-lived intangible assets range from one The excess of the purchase price over the estimated fair values was assigned to goodwill. The 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 AXC integrating with our Heat Transfer Systems segment. Goodwill recorded for the AXC acquisition is deductible for tax purposes. The purchase price allocation reported at December 31, 2019 was preliminary and was based on provisional fair values. During the first six months of 2020 and prior to July 1, 2020, we received and analyzed new information about certain property, plant and equipment and subsequently increased associated deferred tax liabilities by $0.4. The following table summarizes the fair values of the assets acquired and liabilities assumed in the AXC acquisition as of the acquisition date: As Reported December 31, 2019 Adjustments Fair Value Net assets acquired: Identifiable intangible assets $ 256.4 $ — $ 256.4 Goodwill 287.5 0.4 287.9 Property, plant and equipment 34.2 — 34.2 Other assets 53.1 — 53.1 Liabilities (31.5) (0.4) (31.9) Net assets acquired $ 599.7 $ — $ 599.7 Information regarding identifiable intangible assets acquired in the AXC acquisition is presented below: Weighted-average Estimated Useful Life Estimated Asset Fair Value Finite-lived intangible assets: Customer relationships 14.0 years $ 139.1 Unpatented technology 10.0 years 42.1 Backlog (1) 1.0 year 19.2 Other identifiable intangible assets (1) 4.0 years 1.0 Total finite-lived intangible assets acquired 11.0 years 201.4 Indefinite-lived intangible assets: Trademarks and trade names 55.0 Total identifiable intangible assets acquired $ 256.4 _______________ (1) Backlog and other identifiable intangible assets is included in “Patents and other” in Note 9, “Goodwill and Intangible Assets.” For the year ended December 31, 2019, net sales, operating income and intangible assets amortization expense attributed to the acquired AXC operations was $103.1, $4.6 and $16.8, respectively. During the year ended December 31, 2019, we incurred $5.4 in transaction related costs related to the AXC acquisition which were recorded in selling, general and administrative expenses in Corporate in the consolidated statements of income. Unaudited Supplemental Pro Forma Information The following unaudited supplemental pro forma financial information is based on our historical consolidated financial statements and AXC’s historical consolidated financial statements as adjusted to give effect to the July 1, 2019 AXC acquisition. The unaudited supplemental pro forma financial information for the periods presented gives effect to the acquisition as if it had occurred on January 1, 2018. The following adjustments are reflected in the pro forma financial table below: • Adjustment for depreciation related to the step-up in basis of the acquired property, plant and equipment and change in estimated useful lives. • Adjustment for amortization of acquired intangible assets. • Adjustment for the change from last in, first out (LIFO) to weighted-average cost for the acquired inventory and the associated reduction of cost of sales. • Adjustment to reflect an increase in interest expense resulting from interest on the term loan under the 2024 Credit Facilities to finance the AXC acquisition and amortization of related debt issuance costs. • Adjustment to reflect the change in the estimated income tax rate for federal and state purposes. • Adjustment to reflect the increase in weighted-average shares in connection with the equity issuance. This unaudited pro forma financial 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 periods presented. In addition, the unaudited pro forma 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. The following table presents pro forma sales, net income attributable to Chart Industries, Inc., and net income attributable to Chart Industries, Inc. per common share data assuming AXC was acquired at the beginning of the 2018 fiscal year: Year Ended December 31, 2019 2018 Pro forma sales $ 1,364.3 $ 1,211.1 Pro forma net income attributable to Chart Industries, Inc. 56.3 72.0 Pro forma net income attributable to Chart Industries, Inc. per common share, basic $ 1.66 $ 2.05 Pro forma net income attributable to Chart Industries, Inc. per common share, diluted 1.60 1.99 Contingent Consideration The preliminary estimated fair value of contingent consideration was $16.9 for SES and $3.2 for BIG at the date of acquisitions and was valued according to a discounted cash flow approach, which included assumptions regarding the probability of achieving certain targets and a discount rate applied to the potential payments. Potential payments are measured between the period commencing January 1, 2021 and ending on December 31, 2028 based on the attainment of certain earnings targets. The potential payments related to both SES and BIG contingent consideration on a combined basis is between $0.0 and $31.0. Valuations are performed using Level 3 inputs as defined in Note 2, “Significant Accounting Policies” 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 consolidated balance sheets. The contingent consideration valuations were provisional and are subject to revision as we finalize third-party valuations and other analyses, and as such, any adjustment would impact the purchase price allocation. Otherwise, changes in fair value of contingent consideration, including accretion, are recorded as selling, general and administrative expenses in the consolidated statements of income and comprehensive income. No cash consideration was transferred for contingent consideration as of the acquisition dates and as such, the arrangements represent a noncash investing activity in the statement of cash flows for the year ended December 31, 2020. For the year ended December 31, 2020, the fair value of contingent consideration was unchanged. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) and Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) and Equity | Accumulated Other Comprehensive Income (Loss) and Equity Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss) are as follows: December 31, 2020 Foreign currency translation adjustments Pension liability adjustments, net of taxes Accumulated other comprehensive income (loss) Beginning Balance $ (25.0) $ (10.9) $ (35.9) Other comprehensive income (loss) 38.8 (1.7) 37.1 Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes — 1.2 1.2 Net current-period other comprehensive income (loss), net of taxes 38.8 (0.5) 38.3 Ending Balance $ 13.8 $ (11.4) $ 2.4 December 31, 2019 Foreign currency translation adjustments Pension liability adjustments, net of taxes Accumulated other comprehensive income (loss) Beginning Balance $ (17.5) $ (12.4) $ (29.9) Other comprehensive (loss) income (7.5) 1.1 (6.4) Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes — 0.4 0.4 Net current-period other comprehensive (loss) income, net of taxes (7.5) 1.5 (6.0) Ending Balance $ (25.0) $ (10.9) $ (35.9) Public Stock Offering On June 14, 2019, we completed a public offering (the “2019 Equity Offering”), through which Chart issued and sold 4.025 shares of common stock, $0.01 par value per share, which included the full exercise of the underwriters’ option to purchase additional shares, at a price of $73.50 per share, before underwriting discounts and commissions. We received proceeds of $295.8 from the issuance of shares and incurred $9.5 of equity issuance costs. A portion of the proceeds from the 2019 Equity Offering was used to retire existing debt. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table presents calculations of net income per share of common stock: Year Ended December 31, 2020 2019 2018 Net income attributable to Chart Industries, Inc. Income from continuing operations $ 68.9 $ 31.4 $ 32.5 Income from discontinued operations 239.2 15.0 55.5 Net income attributable to Chart Industries, Inc. $ 308.1 $ 46.4 $ 88.0 Earnings per common share – basic: Income from continuing operations $ 1.95 $ 0.93 $ 1.05 Income from discontinued operations 6.76 0.44 1.78 Net income attributable to Chart Industries, Inc. $ 8.71 $ 1.37 $ 2.83 Earnings per common share – diluted: Income from continuing operations $ 1.89 $ 0.89 $ 1.01 Income from discontinued operations 6.56 0.43 1.72 Net income attributable to Chart Industries, Inc. $ 8.45 $ 1.32 $ 2.73 Weighted average number of common shares outstanding – basic 35.38 33.91 31.05 Incremental shares issuable upon assumed conversion and exercise of share-based awards 0.26 0.42 0.77 Incremental shares issuable due to dilutive effect of the convertible notes 0.53 0.82 0.38 Incremental shares issuable due to dilutive effect of warrants 0.28 0.02 — Weighted average number of common shares outstanding – diluted 36.45 35.17 32.20 Diluted earnings per share does not consider the following potential common shares as the effect would be anti-dilutive: Year Ended December 31, 2020 2019 2018 Share-based awards 0.27 0.15 0.22 Convertible note hedge and capped call transactions (1) 0.30 0.82 0.38 Warrants 4.41 — 5.18 Total anti-dilutive securities 4.98 0.97 5.78 _______________ (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 10, “Debt and Credit Arrangements.” |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income from Continuing Operations Before Income Taxes Income from continuing operations before income taxes consists of the following: Year Ended December 31, 2020 2019 2018 United States $ 48.0 $ 24.4 $ 8.2 Foreign 37.2 10.2 33.5 Income from continuing operations before income taxes $ 85.2 $ 34.6 $ 41.7 Provision Significant components of income tax expense (benefit), net are as follows: Year Ended December 31, 2020 2019 2018 Current: Federal $ (0.2) $ 4.9 $ (3.2) State and local 1.9 2.7 (0.2) Foreign 12.2 11.4 5.3 Total current 13.9 19.0 1.9 Deferred: Federal 7.5 (2.0) 3.8 State and local (2.9) (5.5) 1.5 Foreign (3.6) (8.7) — Total deferred 1.0 (16.2) 5.3 Total income tax expense (benefit), net $ 14.9 $ 2.8 $ 7.2 Effective Tax Rate Reconciliation The reconciliation of income taxes computed at the U.S. federal statutory tax rate to income tax expense (benefit) is as follows: Year Ended December 31, 2020 2019 2018 Income tax expense at U.S. statutory rate $ 17.9 $ 7.3 $ 8.7 State income taxes, net of federal tax benefit (0.9) (2.3) 1.2 Foreign income, net of credit on foreign taxes — (1.3) 0.7 Effective tax rate differential of earnings outside of U.S. 2.4 — 2.1 Change in valuation allowance (4.2) 1.0 38.4 Research & experimentation credits (1.0) (0.9) (0.8) Foreign derived intangible income (0.2) (1.2) — Net non-deductible items 1.2 2.3 0.4 Change in uncertain tax positions (0.6) — 0.2 Share-based compensation (1.7) (2.8) (3.3) Capital loss carryover — — (29.7) Tax effect of 2017 tax reform federal rate change (0.2) — (11.3) Tax effect of carryforward foreign tax credits — — (0.6) Other items 2.2 0.7 1.2 Income tax expense $ 14.9 $ 2.8 $ 7.2 Deferred Taxes Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities are as follows: December 31, 2020 2019 Deferred tax assets: Accruals and reserves $ 15.7 $ 19.4 Pensions 2.6 2.9 Inventory 3.5 2.3 Share-based compensation 4.4 5.3 Tax credit carryforwards 10.6 15.5 Foreign net operating loss carryforwards 22.4 24.4 State net operating loss carryforwards 1.9 0.3 Capital loss carryover — 29.4 Convertible notes 0.7 0.7 Operating leases 8.1 8.5 Other – net 7.4 5.5 Total deferred tax assets before valuation allowances 77.3 114.2 Valuation allowances (33.9) (68.2) Total deferred tax assets, net of valuation allowances $ 43.4 $ 46.0 Deferred tax liabilities: Property, plant and equipment $ 27.8 $ 22.2 Goodwill and intangible assets 69.1 74.9 Other – net 5.2 1.0 Total deferred tax liabilities $ 102.1 $ 98.1 Net deferred tax liabilities $ 58.7 $ 52.1 The net deferred tax liability is classified as follows: Other assets $ (1.5) $ — Long-term deferred tax liabilities 60.2 52.1 Net deferred tax liabilities $ 58.7 $ 52.1 As of December 31, 2020, we have $128.4 of state and foreign net operating losses, of which approximately $47.3 expire between 2021 and 2030. We routinely review valuation allowances recorded against deferred tax assets on a more likely than not basis as to whether we have the ability to realize the deferred tax assets. As of December 31, 2020, we have valuation allowances totaling $33.9 consisting primarily of $23.8 associated with our operations in China. Other Tax Information On December 22, 2017, the Tax Cuts and Jobs Act (“Tax Act”) was signed into law. The Tax Act, among other things, reduced the U.S. federal corporate tax rate from 35% to 21%, requires companies to pay a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries, requires a current inclusion in U.S. federal taxable income of certain earnings of foreign corporations, and created a new limitation on deductible interest expense. Consequently, we recorded a $22.5 net favorable tax benefit during the year ended December 31, 2017 primarily due to the remeasurement of deferred tax assets to the 21% federal corporate tax rate. In accordance with SAB 118, we recorded an additional tax benefit $1.8 during the year ended December 31, 2018 primarily related to the remeasurement of deferred tax assets to the 21% federal corporate tax rate based on the completion of our analysis to determine the effect of the Tax Act. We previously considered the earnings in our non-U.S. subsidiaries to be indefinitely reinvested and, accordingly, recorded no deferred income taxes. We have analyzed our global working capital and cash requirements as of December 31, 2020 and have determined that we do not plan to repatriate any earnings at this time. Cash paid for income taxes during the years ended December 31, 2020, 2019 and 2018 was $12.5, $16.8, and $13.2, respectively. Unrecognized Income Tax Benefits The reconciliation of beginning to ending unrecognized tax benefits is as follows: Year Ended December 31, 2020 2019 2018 Unrecognized tax benefits at beginning of the year $ 2.4 $ 2.3 $ 0.8 (Reductions) additions for tax positions taken during the prior period (0.6) (0.1) 0.9 Additions for tax positions taken during the current period 0.2 0.2 1.4 Reductions relating to settlements with taxing authorities (0.1) — (0.8) Unrecognized tax benefits at end of the year $ 1.9 $ 2.4 $ 2.3 Included in the balance of unrecognized tax benefits at December 31, 2020 and 2019 were $1.3 and $1.7 of income tax (benefit)/expenses, respectively, which, if ultimately recognized, would impact our annual effective tax rate. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Defined Benefit Plan We have a defined benefit pension plan which is frozen, that covers certain U.S. hourly and salary employees. The defined benefit plan provides benefits based primarily on the participants’ years of service and compensation. The components of net periodic pension (income) expense are as follows : Year Ended December 31, 2020 2019 2018 Interest cost $ 1.8 $ 2.2 $ 2.1 Expected return on plan assets (3.3) (2.9) (3.3) Amortization of net loss 1.2 1.3 0.9 Total net periodic pension (income) expense $ (0.3) $ 0.6 $ (0.3) The changes in the projected benefit obligation and plan assets, the funded status of the plans and the amounts recognized in the consolidated balance sheets are as follows: December 31, 2020 2019 Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 58.5 $ 53.6 Interest cost 1.8 2.2 Assumption changes 5.2 5.4 Benefits paid (2.7) (2.5) Actuarial gains (0.3) (0.2) Projected benefit obligation at year end 62.5 58.5 Change in plan assets: Fair value of plan assets at beginning of year 49.1 42.8 Actual return 6.4 8.4 Employer contributions 1.1 0.4 Benefits paid (2.7) (2.5) Fair value of plan assets at year end 53.9 49.1 Funded status (Accrued pension liabilities) (1) $ (8.6) $ (9.4) Unrecognized actuarial loss recognized in accumulated other comprehensive income (loss) $ 14.9 $ 14.2 _______________ (1) Accrued pension liabilities on the consolidated balance sheets for both December 31, 2020 and 2019 were $1.0 and $0.8, respectively, related to our Hudson Products business, which is not included in the table above. The estimated net periodic pension income for the defined benefit pension plan that will be amortized from accumulated other comprehensive loss over the next fiscal year is $0.9. The actuarial assumptions used in determining pension plan information are as follows: December 31, 2020 2019 2018 Assumptions used to determine benefit obligation at year end: Discount rate 2.4 % 3.2 % 4.2 % Assumptions used to determine net periodic benefit cost: Discount rate 3.2 % 4.2 % 3.7 % Expected long-term weighted-average rate of return on plan assets 7.0 % 7.0 % 7.0 % The discount rate reflects the current rate at which the pension liabilities could be effectively settled at year end. In estimating this rate, we look to rates of return on high quality, fixed-income investments that receive one of the two highest ratings given by a recognized rating agency and the expected timing of benefit payments under the plan. The expected return assumptions were developed using an averaging formula based upon the plans’ investment guidelines, mix of asset classes, historical returns of equities and bonds, and expected future returns. We employ a total return investment approach whereby a mix of equities and fixed income investments are used to maximize the long-term return of plan assets for a prudent level of risk. Risk tolerance is established through careful consideration of short and long-term plan liabilities, plan funded status and corporate financial condition. The investment portfolio contains a diversified blend of equity and fixed-income investments. Furthermore, equity investments are diversified across U.S. and non-U.S. stocks, as well as growth, value, and small and large capitalizations. Investment risk is measured and monitored on an ongoing basis through quarterly investment portfolio reviews, annual liability measurements, and periodic asset/liability studies. The target allocations by asset category and fair values of the plan assets by asset class at December 31 are as follows: Target Allocations by Asset Category Fair Value Total Level 2 Level 3 Plan Assets: 2020 2019 2020 2019 2020 2019 Equity funds 68% $ 38.9 $ 36.0 $ 38.9 $ 36.0 $ — $ — Fixed income funds 26% 13.2 12.8 13.2 12.8 — — Other investments 6% 1.8 0.3 — — 1.8 0.3 Total $ 53.9 $ 49.1 $ 52.1 $ 48.8 $ 1.8 $ 0.3 The plan assets are primarily invested in pooled separate funds. The fair values of equity securities and fixed income securities held in pooled separate funds are based on net asset value of the units of the funds as determined by the fund manager. These funds are similar in nature to retail mutual funds, but are typically more efficient for institutional investors. The fair value of pooled funds is determined by the value of the underlying assets held by the fund and the units outstanding. The value of the pooled funds is not directly observable, but is based on observable inputs. As such, these plan assets are valued using Level 2 inputs. Certain plan assets in the other investments asset category are invested in a general investment account where the fair value is derived from the liquidation value based on an actuarial formula as defined under terms of the investment contract. These plan assets were valued using unobservable inputs and, accordingly, the valuation was performed using Level 3 inputs. The following table represents changes in the fair value of plan assets categorized as Level 3 from the preceding table: Balance at December 31, 2018 $ 0.2 Purchases, sales and settlements, net (3.1) Transfers, net 3.2 Balance at December 31, 2019 0.3 Purchases, sales and settlements, net (3.0) Transfers, net 4.5 Balance at December 31, 2020 $ 1.8 Our funding policy is to contribute at least the minimum funding amounts required by law. Based upon current actuarial estimates, we do not expect to contribute to our defined benefit pension plan until 2024. The following benefit payments are expected to be paid by the plan in each of the next five years and in the aggregate for the subsequent five years: 2021 $ 3.1 2022 3.2 2023 3.3 2024 3.3 2025 3.4 In aggregate during five years thereafter 17.2 Hudson Defined Benefit Plan We have a noncontributory defined benefit plan at our Hudson Products business (the “Hudson Plan”) covering certain employees who meet the plan’s eligibility requirements. The Hudson Plan is closed to new participants. Our funding policy is to make the minimum annual contribution that is required by applicable regulations, plus such amounts as we may determine to be appropriate from time to time. At both December 31, 2020 and 2019, the projected benefit obligation of the Hudson Plan was $2.9 while the fair value of plan assets was $2.0. Consequently, at December 31, 2020 and 2019, a liability of $1.0 and $0.8, respectively, was included in accrued pension liabilities on the consolidated balance sheets for the underfunded status of the Hudson Plan. Pension expense in 2020 and 2019 was not significant. Multi-Employer Plan We contribute to a multi-employer plan for certain collective bargaining U.S. employees. The risks of participating in this multi-employer plan are different from a single employer plan in the following aspects: (a) Assets contributed to the multi-employer plan by one employer may be used to provide benefits to employees of other participating employers. (b) If a participating employer ceases contributing to the plan, the unfunded obligations of the plan may be inherited by the remaining participating employers. (c) If we choose to stop participating in the multi-employer plan, we may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability. We have assessed and determined that the multi-employer plan to which we contribute is not significant to our financial statements. We do not expect to incur a withdrawal liability or expect to significantly increase our contribution over the remainder of the current contract period, which ends in February 2023. We made contributions to the bargaining unit supported multi-employer pension plan resulting in expense of $0.5, $0.5, and $0.4 for the years ended December 31, 2020, 2019 and 2018, respectively. The reduction in contributions is due to fewer employees participating in this plan. Defined Contribution Savings Plan We have a defined contribution savings plan that covers most of our U.S. employees. Company contributions to the plan are based on employee contributions, and include a Company match and discretionary contributions. Expenses under the plan totaled $4.9, $8.7, and $8.2 for the years ended December 31, 2020, 2019 and 2018, respectively. Voluntary Deferred Income Plan We provide additional retirement plan benefits to certain members of management under the Amended and Restated Chart Industries, Inc. Voluntary Deferred Income Plan. This is an unfunded plan. We recorded $0.3, $0.3, and $0.4 of expense associated with this plan for the years ended December 31, 2020, 2019 and 2018, respectively. |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation | Share-based Compensation Under the 2017 Omnibus Equity Plan (the “2017 Omnibus Equity Plan”) officers and employees (including our principal executive officer, principal financial officer and other “named executive officers”) are eligible to be granted stock options, stock appreciation rights (“SARs”), restricted stock, restricted stock units (“RSUs”), performance shares and common shares. The maximum number of shares available for issuance is 1.70, which may be treasury shares or unissued shares. As of December 31, 2020, 0.22 stock options, 0.20 shares of restricted stock and RSUs, and 0.06 performance units were outstanding under the 2017 Omnibus Equity Plan. Under the Amended and Restated 2009 Omnibus Equity Plan (“2009 Omnibus Equity Plan”) which was originally approved by our shareholders in May 2009 and re-approved by shareholders in May 2012 as amended and restated, we could grant stock options, SARs, RSUs, restricted stock, performance shares, leveraged restricted shares, and common shares to employees and directors. The maximum number of shares available for issuance is 3.35, which could be treasury shares or unissued shares. As of December 31, 2020 0.15 stock options were outstanding under the 2009 Omnibus Equity Plan. We recognized share-based compensation expense of $8.6, $8.8, and $4.6 for the years ended December 31, 2020, 2019 and 2018, respectively. This expense is included in selling, general and administrative expenses in the consolidated statements of income. The tax benefit related to share-based compensation, which was recorded in net income in the consolidated statement of income during the years ended December 31, 2020, 2019 and 2018 was $1.6, $2.7 and $1.3 respectively, which was recorded in net income in the consolidated statements of income. As of December 31, 2020, total share-based compensation expense of $8.9 is expected to be recognized over the remaining weighted-average period of approximately 1.7 years. Stock Options We use a Black-Scholes option pricing model to estimate the fair value of stock options. The expected volatility is based on historical information. The risk-free rate is based on the U.S. Treasury yield in effect at the time of the grant. Weighted-average grant-date fair values of stock options and the assumptions used in estimating the fair values are as follows: Year Ended December 31, 2020 2019 2018 Weighted-average grant-date fair value per share $ 28.53 $ 30.66 $ 26.67 Expected term (years) 4.8 5.0 5.5 Risk-free interest rate 1.66 % 2.24 % 2.30 % Expected volatility 46.60 % 50.94 % 59.41 % Stock options generally have a four-year graded vesting period, an exercise price equal to the fair market value of a share of common stock on the date of grant, and a contractual term of 10 years. The following table summarizes our stock option activity from continuing operations: December 31, 2020 Number Weighted-average Aggregate Intrinsic Value Weighted- average Remaining Contractual Term Outstanding at beginning of year 0.63 $ 46.01 Granted 0.11 68.80 Exercised (0.31) 35.66 Forfeited / Cancelled (0.07) 59.76 Outstanding at end of year 0.36 $ 57.95 $ 22.6 6.1 years Vested and expected to vest at end of year 0.36 $ 57.67 $ 9.3 6.0 years Exercisable at end of year 0.15 $ 56.51 $ 22.1 4.5 years As of December 31, 2020, total unrecognized compensation cost related to stock options expected to be recognized over the weighted-average period of approximately 2.4 years is $2.1. The total intrinsic value of options exercised during the years ended December 31, 2020, 2019 and 2018 was $13.2, $13.1, and $18.8, respectively. The total fair value of stock options vested during the years ended December 31, 2020, 2019 and 2018 was $3.5, $3.1, and $3.7, respectively. Restricted Stock and RSUs Restricted stock and RSUs generally vest ratably over a three-year period and are valued based on our market price on the date of grant. The following table summarizes our unvested restricted stock and RSUs activity from continuing operations: December 31, 2020 Number Weighted-Average Unvested at beginning of year 0.22 $ 55.46 Granted 0.09 63.32 Forfeited (0.02) 63.89 Vested (0.10) 51.23 Unvested at end of year 0.19 $ 60.28 As of December 31, 2020, total unrecognized compensation cost related to unvested restricted stock and RSUs expected to be recognized over the weighted-average period of approximately 1.5 years is $4.7. The weighted-average grant-date fair value of restricted stock and RSUs granted during the years ended December 31, 2020, 2019, and 2018 was $63.32, $67.64, and $51.99, respectively. The total fair value of restricted stock and RSUs that vested during the years ended December 31, 2020, 2019, and 2018 was $6.8, $7.7, and $7.3, respectively. Performance Units Performance units are earned over a three-year period. Based on the attainment of pre-determined performance condition targets as determined by the Compensation Committee of the Board of Directors, performance units earned may be in the range of between 0% and 200%. The following table, which is stated at a 100% earned percentage, summarizes our performance units activity from continuing operations: December 31, 2020 Number Weighted-Average Unvested at beginning of year 0.04 $ 61.71 Granted 0.04 67.50 Vested — 38.51 Forfeited (0.01) 60.91 Unvested at end of year 0.07 $ 66.76 As of December 31, 2020, total unrecognized compensation cost related to performance units expected to be recognized over a weighted-average period of approximately 1.7 years is $2.1. The weighted-average grant-date fair value of performance units granted during the years ended December 31, 2020, 2019, and 2018 was $67.50, $69.53, and $49.38, respectively. The total fair value of performance units that vested during the years ended December 31, 2020, 2019, and 2018 was $0.3, $1.1, and $0.1, respectively. Directors’ Stock Grants In 2020, 2019 and 2018, we granted the non-employee directors stock awards covering 0.01 shares of common stock for each of those years, which had fair values of $1.3, $0.6, and $0.7, respectively. These stock awards were fully vested on the grant date. Likewise, the fair values were recognized immediately on the grant date. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases As of December 31, 2020 and 2019, operating ROU assets and lease liabilities were $29.0 and $28.7 ($5.1 of which was current), and $34.0 and $34.1 ($6.3 of which was current), respectively. The weighted-average remaining term for lease contracts was 5.8 years at December 31, 2020, with maturity dates ranging from April 2021 to February 2029. The weighted-average discount rate was 2.3% at December 31, 2020. We incurred $11.1, $10.2, and $7.3 of rental expense under operating leases for the years ended December 31, 2020, 2019 and 2018, respectively. Certain operating 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. 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 December 31, 2020: 2021 $ 6.6 2022 6.2 2023 5.6 2024 5.1 2025 4.3 Thereafter (1) 3.5 Total future minimum lease payments $ 31.3 _______________ (1) As of December 31, 2020, future minimum lease payments for non-cancelable operating leases for period subsequent to 2025 relate to 7 leased facilities. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Environmental We are subject to federal, state, local, and foreign environmental laws and regulations concerning, among other matters, waste water effluents, air emissions, and handling and disposal of hazardous materials, such as cleaning fluids. We are involved with environmental compliance, investigation, monitoring, and remediation activities at certain of our owned and formerly owned manufacturing facilities and at one owned facility that is leased to a third party, and, except for these continuing remediation efforts, believes we are currently in substantial compliance with all known environmental regulations. At December 31, 2020 and 2019, we had undiscounted accrued environmental reserves of $0.3 and $0.6, respectively. Legal Proceedings Stainless Steel Cryobiological Tank Legal Proceedings During the second quarter of 2018, Chart was named in lawsuits (including lawsuits 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 continue to evaluate the merits of such claims in light of the information available to date regarding use, maintenance and operation of the tank that was sold to the Pacific Fertility Center through an independent distributor and which has been out of our control for six years prior to the alleged failure. 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. In connection with the Cryobiological Divestiture, Chart retained certain potential liabilities and claims, including the claims asserted in connection with the litigation. 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 was named in a purported class action lawsuit filed during the second quarter of 2018 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. A settlement has been reached by the parties in the lawsuit with no material effect on the Company’s financial position, results of operations or cash flows. We are occasionally subject to various legal claims related to performance under contracts, product liability, taxes, employment matters, environmental matters, intellectual property, and other matters incidental to the normal course of our business. Based on our historical experience in litigating these claims, as well as our current assessment of the underlying merits of the claims and applicable insurance, if any, management believes that the final resolution of these matters will not have a material adverse effect on our financial position, liquidity, cash flows, or results of operations. Future developments may, however, result in resolution of these legal claims in a way that could have a material adverse effect. See Item 1A. “Risk Factors.” |
Restructuring Activities
Restructuring Activities | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Activities | Restructuring Activities During 2020, we implemented certain cost reduction actions across all segments and corporate to appropriately size our workforce with demand as well as eliminate redundant work. Costs were primarily related to headcount reductions. These actions resulted in total restructuring costs of $13.6 for the year ended December 31, 2020, consisting of mainly employee severance costs ($10.1). As previously reported, on July 17, 2020, we announced internally our intention to transfer operations of our heat exchanger leased facility in Tulsa, Oklahoma to our Beasley, Texas location at which we own 260 acres of land. This was a cost reduction measure within our Heat Transfer Systems segment to continue to structure the business for profitable growth and capacity efficiency. Total costs related to this action are expected to be approximately $9.0, of which $2.7 has been spent year to date, associated with severance, relocation and moving expenses. We expect this project to be completed by June 30, 2021. We are closely monitoring our end markets and order rates and will continue to take appropriate and timely actions as necessary. During 2019, we implemented certain cost reduction or avoidance actions, including facility consolidations at certain of our U.S. properties, and a streamlining of the commercial activities surrounding our Lifecycle business in our Repair, Service & Leasing segment, geographic realignment of our manufacturing capacity and a facility closure in Asia, as well as departmental restructuring, including headcount reductions in each of our four segments. These actions resulted in total restructuring costs of $15.6, consisting of employee severance costs, disposals of property, plant and equipment and other costs. Restructuring costs for 2019 reflect a $1.6 credit to Repair, Service & Leasing segment restructuring costs recorded in the second quarter of 2019 due to the successful negotiation of a lease termination for a facility for our previous Lifecycle business. These restructuring activities were substantially completed by the end of 2019. During 2018, we implemented certain cost reduction or avoidance actions, primarily related to departmental restructuring, including headcount reductions resulting in associated severance costs. We executed a strategic realignment of our segment structure, which resulted in severance charges during 2018. These actions resulted in total restructuring costs of $4.3 for the year ended December 31, 2018. The following table is a summary of the severance and other restructuring costs, which includes employee-related costs, facility rent and exit costs, relocation, recruiting, travel and other, for the years ended December 31, 2020, 2019 and 2018: Year Ended December 31, 2020 2019 2018 Severance: Cost of sales $ 4.6 $ 2.9 $ — Selling, general, and administrative expenses 5.5 1.4 3.1 Total severance costs 10.1 4.3 3.1 Other restructuring: Cost of sales 1.1 9.3 0.8 Selling, general, and administrative expenses 2.4 2.0 0.4 Total other restructuring costs 3.5 11.3 1.2 Total restructuring costs $ 13.6 $ 15.6 $ 4.3 We are closely monitoring our end markets and order rates and will continue to take appropriate and timely actions as necessary. The following tables summarize our restructuring accrual activities: Year Ended December 31, 2020 Cryo Tank Solutions Heat Transfer Systems Specialty Products Repair, Service & Leasing Corporate Total Balance as of December 31, 2019 $ 0.5 $ 0.2 $ — $ — $ 0.2 $ 0.9 Restructuring charges 2.7 7.4 0.7 0.2 2.6 13.6 Cash payments and other (2.7) (7.4) (0.7) (0.2) (2.7) (13.7) Balance as of December 31, 2020 $ 0.5 $ 0.2 $ — $ — $ 0.1 $ 0.8 Year Ended December 31, 2019 Cryo Tank Solutions Heat Transfer Systems Specialty Products Repair, Service & Leasing Corporate Total Balance as of December 31, 2018 $ 0.7 $ — $ — $ — $ 0.1 $ 0.8 Restructuring charges 9.1 4.5 0.3 1.5 0.2 15.6 Property, plant and equipment impairment (3.9) (1.7) — — — (5.6) Cash payments and other (5.4) (2.6) (0.3) (1.5) (0.1) (9.9) Balance as of December 31, 2019 $ 0.5 $ 0.2 $ — $ — $ 0.2 $ 0.9 Year Ended December 31, 2018 Cryo Tank Solutions Heat Transfer Systems Specialty Products Repair, Service & Leasing Corporate Total Balance as of December 31, 2017 $ 0.3 $ — $ — $ — $ 1.1 $ 1.4 Restructuring charges (credits) 1.7 0.7 (0.3) (0.1) 2.3 4.3 Cash payments and other (1.3) (0.7) 0.3 0.1 (3.3) (4.9) Balance as of December 31, 2018 $ 0.7 $ — $ — $ — $ 0.1 $ 0.8 |
Quarterly Data (Unaudited)
Quarterly Data (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Data (Unaudited) | Quarterly Data (Unaudited) Selected quarterly data for the years ended December 31, 2020 and 2019 are as follows: Year Ended December 31, 2020 First Second Third Fourth Total Sales $ 301.9 $ 289.6 $ 273.2 $ 312.4 $ 1,177.1 Gross profit 82.3 83.3 78.6 87.9 332.1 Operating income (1) 15.8 25.8 28.1 22.5 92.2 Income from continuing operations 2.0 13.8 15.6 37.5 68.9 Income from discontinued operations 6.4 6.4 6.1 220.3 239.2 Net income attributable to Chart Industries, Inc. (1) 8.4 20.2 21.7 257.8 308.1 Basic earnings per common share attributable to Chart Industries, Inc (2) Income from continuing operations 0.06 0.39 0.44 1.06 1.95 Income from discontinued operations 0.17 0.18 0.18 6.23 6.76 Net income attributable to Chart Industries, Inc. $ 0.23 $ 0.57 $ 0.62 $ 7.29 $ 8.71 Diluted earnings per common share attributable to Chart Industries, Inc. (2) Income from continuing operations $ 0.06 $ 0.39 $ 0.43 $ 0.97 $ 1.89 Income from discontinued operations 0.17 0.18 0.17 5.72 6.56 Net income attributable to Chart Industries, Inc. $ 0.23 $ 0.57 $ 0.60 $ 6.69 $ 8.45 _______________ (1) Includes gain on sale from the Cryobiological Divestiture of $224.2, net of taxes of $25.2, for the fourth quarter of 2020. (2) Basic and diluted earnings per share are computed independently for each of the quarters presented. As such, the sum of quarterly basic and diluted earnings per share may not equal reported annual basic and diluted earnings per share. Year Ended December 31, 2019 First Second Third Fourth Total Sales $ 269.0 $ 287.1 $ 338.0 $ 321.4 $ 1,215.5 Gross profit 57.5 71.8 92.9 75.3 297.5 Operating (loss) income (1) (3.1) 16.2 23.4 15.5 52.0 (Loss) income from continuing operations (5.1) 6.3 13.7 16.5 31.4 Income (loss) from discontinued operations 6.0 8.1 5.0 (4.1) 15.0 Net income attributable to Chart Industries, Inc. $ 0.9 $ 14.4 $ 18.7 $ 12.4 $ 46.4 Basic earnings per common share attributable to Chart Industries, Inc. (Loss) income from continuing operations $ (0.16) $ 0.19 $ 0.38 $ 0.46 $ 0.93 Income (loss) from discontinued operations 0.19 0.25 0.14 (0.11) 0.44 Net income attributable to Chart Industries, Inc. (2) $ 0.03 $ 0.44 $ 0.52 $ 0.35 $ 1.37 Diluted earnings per common share attributable to Chart Industries, Inc. (Loss) income from continuing operations $ (0.15) $ 0.18 $ 0.37 $ 0.46 $ 0.89 Income (loss) from discontinued operations 0.18 0.23 0.14 (0.12) 0.43 Net income attributable to Chart Industries, Inc. (2) $ 0.03 $ 0.41 $ 0.51 $ 0.34 $ 1.32 _______________ (1) Includes transaction-related costs of $5.4 for the year ended December 31, 2019, which were mainly related to the AXC acquisition. Includes transaction-related costs of $4.3 related to integration activities for previous acquisitions for the year ended December 31, 2019. (2) Basic and diluted earnings per share are computed independently for each of the quarters presented. As such, the sum of quarterly basic and diluted earnings per share may not equal reported annual basic and diluted earnings per share. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS (Dollars in millions) Additions Balance at Charged to Charged Deductions Translations Balance Year Ended December 31, 2020 Allowance for doubtful accounts $ 8.5 $ 0.4 $ — $ — $ (0.5) $ 8.4 Allowance for excess and obsolete inventory 10.6 0.4 — (0.5) (3) (0.8) 9.7 Deferred tax assets valuation allowance 68.2 0.3 — (1) (36.6) (4) 2.0 33.9 Year Ended December 31, 2019 Allowance for doubtful accounts $ 8.1 $ 0.2 $ — $ — (2) $ 0.2 $ 8.5 Allowance for excess and obsolete inventory 8.9 10.0 — (8.0) (3) (0.3) 10.6 Deferred tax assets valuation allowance 65.2 5.4 5.3 (5.9) (1.8) 68.2 Year Ended December 31, 2018 Allowance for doubtful accounts $ 9.1 $ (0.9) $ — $ — (2) $ (0.1) $ 8.1 Allowance for excess and obsolete inventory 7.9 8.6 — (7.4) (3) (0.2) 8.9 Deferred tax assets valuation allowance 26.8 38.7 — — (0.3) 65.2 _______________ (1) Deferred tax assets valuation allowance related to the VRV acquisition. (2) Reversal of amounts previously recorded as bad debt and uncollectible accounts written off. (3) Inventory items written off against the allowance. (4) Deductions to the deferred tax assets valuation allowance relate to decreased deferred tax assets and the release of the valuation allowance. During the year ended December 31, 2020, we reduced our deferred tax assets relative to the Cryobiological Divestiture and as such also reduced the related valuation allowance by $32.4. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent EventOn February 16, 2021, we acquired 100% of the equity interests of Cryogenic Gas Technologies, Inc. (“Cryo Technologies”) for approximately $55 million in cash (subject to certain customary adjustments). Cryo Technologies is a global leader in custom engineered process systems to separate, purify, refrigerate, liquefy and distribute high value industrial gases such as hydrogen, helium, argon and hydrocarbons with design capabilities for cold boxes for hydrogen and helium use. The distribution systems Cryo Technologies supplies are located within the helium and hydrogen liquefaction facilities and are inclusive of trailer loading systems, which facilitates the first step in product distribution. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation: The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and include the accounts of Chart Industries, Inc. and its subsidiaries. Intercompany accounts and transactions are eliminated in consolidation. |
Reclassifications | Reclassifications : On October 1, 2020, we closed on the sale of our cryobiological products business to Cryoport, Inc. (NASDAQ: CYRX). Refer to Note 3, “Discontinued Operations,” for further information. Furthermore, effective October 1, 2020, we changed our reportable segments as further discussed in Note 4, “Segment and Geographic Information. Certain reclassifications have been made to 2019 and 2018 consolidated statements of income and comprehensive income and 2018 consolidated statement of cash flows, the 2019 consolidated balance sheet and certain notes to the consolidated financial statements in order to conform to the 2020 presentation. |
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. |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents: We consider all investments with an initial maturity of three months or less when purchased to be cash equivalents. See Note 10, “Debt and Credit Arrangements” for additional information about restricted cash and restricted cash equivalents, which are included in other current assets and other assets in the accompanying consolidated balance sheets. |
Accounts Receivable, Net of Allowances | Accounts Receivable, Net of Allowances: Accounts receivable includes amounts billed and currently due from customers. The amounts due are stated at their net estimated realizable value. We maintain an allowance for doubtful accounts to provide for the estimated amount of receivables that will not be collected. The allowance is based upon an assessment of customer creditworthiness, historical payment experience, the age of outstanding receivables and collateral to the extent applicable. In addition, we estimate expected credit losses based on historical loss information then adjust the estimates based on current, reasonable and supportable forecast economic conditions. Past-due trade receivable balances are written off when our internal collection efforts have been unsuccessful. As a practical expedient, we do not adjust the promised amount of consideration for the effects of a significant financing component when we expect, at contract inception, that the period between our transfer of a promised product or service to a customer and when the customer pays for that product or service will be one year or less. We do not typically include extended payment terms in our contracts with customers. |
Inventories | Inventories: Inventories are stated at the lower of cost or net realizable value with cost being determined by the first-in, first-out (“FIFO”) method. We determine inventory valuation reserves based on a combination of factors. In circumstances where we are aware of a specific problem in the valuation of a certain item, a specific reserve is recorded to reduce the item to its net realizable value. We also recognize reserves based on the actual usage in recent history and projected usage in the near-term. |
Unbilled Contract Revenue, Customer Advances and Billings in Excess of Contract Revenue, And Revenue Recognition | Unbilled Contract Revenue: Unbilled contract revenue represents contract assets resulting from revenue recognized over time in excess of the amount billed to the customer and the amount billed to the customer is not just subject to the passage of time. Billing requirements vary by contract but are generally structured around the completion of certain milestones. These contract assets are generally classified as current. Customer Advances and Billings in Excess of Contract Revenue: Our contract liabilities consist of advance customer payments, billings in excess of revenue recognized and deferred revenue. Our contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. We classify advance customer payments and billings in excess of revenue recognized as current. We classify deferred revenue as current or non-current based on the timing of when we expect to recognize revenue. The current portion of deferred revenue is included in customer advances and billings in excess of contract revenue in our consolidated balance sheets. Long-term deferred revenue is included in other long-term liabilities in our consolidated balance sheets. Revenue Recognition: Revenue is recognized when (or as) we satisfy performance obligations by transferring a promised good or service, an asset, to a customer. An asset is transferred to a customer when, or as, the customer obtains control over that asset. In most contracts, the transaction price includes both fixed and variable consideration. The variable consideration contained within our contracts with customers includes discounts, rebates, refunds, credits, price concessions, incentives, performance bonuses, penalties and other similar items. When a contract includes variable consideration, we evaluate the estimate of the variable consideration to determine whether the estimate needs to be constrained; therefore, we include the variable consideration in the transaction price only to the extent that it is probable that a significant reversal of the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Variable consideration estimates are updated at each reporting date. When a contract includes multiple performance obligations, the contract price is allocated among the performance obligations based upon the stand alone selling prices. When the period between when we transfer a promised good or service to a customer and when the customer pays for that good or service is expected, at contract inception, to be one year or less, we do not adjust for the effects of a significant financing component. For brazed aluminum heat exchangers, air cooled heat exchangers, cold boxes, liquefied natural gas fueling stations, engineered tanks, and repair services, most contracts contain language that transfers control to the customer over time. For these contracts, revenue is recognized as we satisfy the performance obligations by an allocation of the transaction price to the accounting period computed using input methods such as costs incurred. Input methods recognize revenue on the basis of the entity’s efforts or inputs to the satisfaction of a performance obligation relative to the total expected inputs to the satisfaction of that performance obligation. The costs incurred input method measures progress toward the satisfaction of the performance obligation by multiplying the transaction price of the performance obligation by the percentage of incurred costs as of the balance sheet date to the total estimated costs at completion after giving effect to the most current estimates. Timing of amounts billed on contracts varies from contract to contract and could cause significant variation in working capital needs. Revisions to estimated cost to complete that result from inefficiencies in our performance that were not expected in the pricing of the contract are expensed in the period in which these inefficiencies become known. Contract modifications can change a contract’s scope, price, or both. Approved contract modifications are accounted for as either a separate contract or as part of the existing contract depending on the nature of the modification. For standard industrial gas and LNG tanks and some products identified in the prior paragraph with contract language that does not meet the over time recognition requirements, the contract with the customer contains language that transfers control to the customer at a point in time. For these contracts, revenue is recognized when we satisfy our performance obligation to the customer. Timing of amounts billed on contracts varies from contract to contract. The specific point in time when control transfers depends on the contract with the customer, contract terms that provide for a present obligation to pay, physical possession, legal title, risk and rewards of ownership, acceptance of the asset, and bill-and-hold arrangements may impact the point in time when control transfers to the customer. We recognize revenue under bill-and-hold arrangements when control transfers and the reason for the arrangement is substantive, the product is separately identified as belonging to the customer, the product is ready for physical transfer and we do not have the ability to use the product or direct it to another customer. Incremental contract costs are expensed when incurred when the amortization period of the asset that would have been recognized is one year or less; otherwise, incremental contract costs are recognized as an asset and amortized over time as promised goods and services are transferred to a customer. When losses are expected to be incurred on a contract, we recognize the entire anticipated loss in the accounting period when the loss becomes evident. The loss is recognized when the current estimate of the consideration we expect to receive, modified to include unconstrained variable consideration instead of constrained variable consideration, is less than the current estimate of total costs for the contract. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by us from a customer, are excluded from revenue. Shipping and handling fee revenues and the related expenses are reported as fulfillment revenues and expenses for all customers because we have adopted the practical expedient contained in ASC 606-10-25-18B. Therefore, all shipping and handling costs associated with outbound freight are accounted for as fulfillment costs and are included in cost of sales. Amounts billed to customers for shipping are classified as sales, and the related costs are classified as cost of sales on the consolidated statements of income. Shipping revenue of $10.6, $11.3, and $10.6 for the years ended December 31, 2020, 2019 and 2018, respectively, are included in sales. Shipping costs of $15.0, $15.8, and $15.2 for the years ended December 31, 2020, 2019 and 2018, respectively, are included in cost of sales. Cost of Sales: Manufacturing expenses associated with sales are included in cost of sales. Cost of sales includes all materials, direct and indirect labor, inbound freight, purchasing and receiving, inspection, internal transfers, and distribution and warehousing of inventory. In addition, shop supplies, facility maintenance costs, manufacturing engineering, project management, and depreciation expense for assets used in the manufacturing process are included in cost of sales on the consolidated statements of income. |
Property, Plant and Equipment | Property, Plant and Equipment: Capital expenditures for property, plant and equipment are recorded at cost. Expenditures for maintenance and repairs are charged to expense as incurred, whereas major improvements that extend the useful life are capitalized. The cost of applicable assets is depreciated over their estimated useful lives. Depreciation is computed using the straight-line method for financial reporting purposes and accelerated methods for income tax purposes. |
Lease Accounting | Lease Accounting: 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 right-of-use (“ROU”) assets and are included within property, plant and equipment, net and lease liabilities are included in operating lease liabilities, current and operating lease liabilities, non-current in our consolidated balance sheet. 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 were 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 used our incremental borrowing rate based on the information available on the Commencement Date in determining the present value of lease payments. |
Long-lived Assets | Long-lived Assets: We monitor our property, plant, equipment, and finite-lived intangible assets for impairment indicators on an ongoing basis. Assets are grouped and tested at the lowest level for which identifiable cash flows are available. If impairment indicators exist, we perform the required analysis and record impairment charges, if applicable. In conducting our analysis, we compare the undiscounted cash flows expected to be generated from the long-lived assets to the related net book values. If the undiscounted cash flows exceed the net book value, the long-lived assets are considered not to be impaired. If the net book value exceeds the undiscounted cash flows, an impairment loss is measured and recognized. An impairment loss is measured as the difference between the net book value and the fair value of the long-lived assets. Fair value is estimated from discounted future net cash flows (for assets held and used) or net realizable value (for assets held for sale). Changes in economic or operating conditions impacting these estimates and assumptions could result in the impairment of long-lived assets. We amortize intangible assets that have finite lives over their estimated useful lives. |
Goodwill and Indefinite-Lived Intangible Assets | Goodwill and Indefinite-Lived Intangible Assets: Goodwill is recognized as the excess cost of an acquired entity over the net amount assigned to assets acquired and liabilities assumed. We do not amortize goodwill or indefinite-lived intangible assets, but review them for impairment annually in the fourth quarter or whenever events or changes in circumstances indicate that an evaluation should be completed. Goodwill is analyzed on a reporting unit basis. As previously reported in our Annual Report on Form 10-K for the year ended December 31, 2019, our reporting units, which were the same as our operating and reportable segments were Distribution and Storage Eastern Hemisphere (“D&S East”), Distribution and Storage Western Hemisphere (“D&S West”), Energy & Chemicals (“E&C”) Cryogenics and E&C FinFans. Effective October 1, 2020, we changed our reporting units, which are the same as our operating and reportable segments, to the following four segments: Cryo Tank Solutions, Heat Transfer Systems, Specialty Products and Repair, Service & Leasing. We first evaluate qualitative factors, such as macroeconomic conditions and our overall financial performance to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. We then evaluate how significant each of the identified factors could be to the fair value or carrying amount of a reporting unit and weigh these factors in totality in forming a conclusion of whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount (the “Step 0 Test”). If we determine that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, the first step of the goodwill impairment test is not necessary. Otherwise, we would proceed to the first step of the goodwill impairment test. Alternatively, we may also bypass the Step 0 Test and proceed directly to the first step of the goodwill impairment test. Under the first step (“Step 1”), we estimate the fair value of the reporting units by considering income and market approaches to develop fair value estimates, which are weighted to arrive at a fair value estimate for each reporting unit. With respect to the income approach, a model has been developed to estimate the fair value of each reporting unit. This fair value model incorporates estimates of future cash flows, estimates of allocations of certain assets and cash flows among reporting units, estimates of future growth rates and management’s judgment regarding the applicable discount rates to use to discount such estimates of cash flows. With respect to the market approach, a guideline company method is employed whereby pricing multiples are derived from companies with similar assets or businesses to estimate fair value of each reporting unit. If the fair value of the reporting unit exceeds the carrying amount of the net assets assigned to that reporting unit, then goodwill is not impaired and no further testing is required. However, if the fair value of the reporting unit is less than its carrying amount, the impairment charge is based on the excess of a reporting unit’s carrying amount over its fair value (i.e., we would measure the charge based on the result from Step 1). In order to assess the reasonableness of the calculated fair values of the reporting units, we also compare the sum of the reporting units’ fair values to the market capitalization and calculate an implied control premium (the excess of the sum of the reporting units’ fair values over the market capitalization). We evaluate the control premium by comparing it to control premiums of recent comparable transactions. If the implied control premium is not reasonable in light of this assessment, we reevaluate the fair value estimates of the reporting units by adjusting the discount rates and other assumptions as necessary. Changes to the assumptions and estimates used throughout the steps described above may result in a significantly different estimate of the fair value of the reporting units, which could result in a different assessment of the recoverability of goodwill and result in future impairment charges. With respect to indefinite-lived intangible assets, we first evaluate relevant events and circumstances to determine whether it is more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying amount. If, in weighing all relevant events and circumstances in totality, we determine that it is more likely than not that an indefinite-lived intangible asset is not impaired, no further action is necessary. Otherwise, we would determine the fair value of indefinite-lived intangible assets and perform a quantitative impairment assessment by comparing the indefinite-lived intangible asset’s fair value to its carrying amount. We may bypass such a qualitative assessment and proceed directly to the quantitative assessment. We estimate the fair value of the indefinite-lived assets using the income approach. This may include the relief from royalty method or use of a model similar to the one described above related to goodwill which estimates the future cash flows attributed to the indefinite-lived intangible asset and then discounting these cash flows back to a present value. Under the relief from royalty method, fair value is estimated by discounting the royalty savings, as well as any tax benefits related to ownership to a present value. The fair value from either approach is compared to the carrying value and an impairment is recorded if the fair value is determined to be less than the carrying value. |
Convertible Debt | Convertible Debt: We determined that the conversion option within our convertible notes due November 2024 was not clearly and closely related to the debt instrument host, however, the conversion option met a scope exception to derivative instrument accounting since the conversion feature is indexed to our common stock and meets equity classification criteria. Convertible debt instruments exempt from derivative accounting and subject to cash settlement of the conversion option are recognized by bifurcating the principal balance into a liability component and an equity component where the fair value of the liability component is estimated by calculating the present value of its cash flows discounted at an interest rate that we would have received for similar debt instruments that have no conversion rights (the “straight-debt rate”), and the equity component is the residual amount, net of tax, which creates a discount on our convertible notes due November 2024. We recognize non-cash interest accretion expense related to the carrying amount of our convertible notes due November 2024 which is accreted back to its principal amount over the expected life of the debt, which is also the stated life of the debt. Subsequent to December 31, 2020, on January 1, 2021, we will adopt ASU 2020-06, “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entities Own Equity (Subtopic 815-40)” which, among other things, modifies the accounting for convertible debt and diluted earnings per share accounting treatment. For further discussion see the Recently Issued Accounting Standards (Not Yet Adopted) |
Financial Instruments | Financial Instruments: The fair values of cash equivalents, accounts receivable, accounts payable and short-term bank debt approximate their carrying amount because of the short maturity of these instruments. |
Concentration Risks | To minimize credit risk from trade receivables, we review the financial condition of potential customers in relation to established credit requirements before sales credit is extended and monitor the financial condition and payment history of customers to help ensure timely collections and to minimize losses. Additionally, for certain domestic and foreign customers, we require advance payments, letters of credit, bankers’ acceptances, and other such guarantees of payment. Certain customers also require us to issue letters of credit or performance bonds, particularly in instances where advance payments are involved, as a condition of placing the order. |
Fair Value Measurements | Fair Value Measurements: We measure our financial assets and liabilities at fair value on a recurring basis using a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies. The three levels of inputs used to measure fair value are as follows: Level 1 — Valuations based on quoted prices for identical assets and liabilities in active markets. Level 2 — Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 — Valuations based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. |
Derivative Financial Instruments | Derivative Financial Instruments: We utilize certain derivative financial instruments to enhance our ability to manage foreign currency risk that exists as part of ongoing business operations. Derivative instruments are entered into for periods consistent with related underlying exposures and do not constitute positions independent of those exposures. We do not enter into contracts for speculative purposes nor are we a party to any leveraged derivative instrument. We are exposed to foreign currency exchange risk as a result of transactions in currencies other than the functional currency of certain subsidiaries. We utilize foreign currency forward purchase and sale contracts to manage the volatility associated with foreign currency purchases and certain intercompany transactions in the normal course of business. Contracts typically have maturities of less than one year. Principal currencies include the U.S. dollar, the euro, the Chinese yuan, the Czech koruna, the Australian dollar, the British pound, the Canadian dollar, the Indian rupee and the Japanese yen. Our foreign currency forward contracts do not qualify as hedges as defined by accounting guidance. Foreign currency forward contracts are measured at fair value and recorded on the consolidated balance sheets as other current liabilities or assets. Changes in their fair value are recorded in the consolidated statements of income as foreign currency gains or losses. Our foreign currency forward contracts are not exchange traded instruments and, accordingly, the valuation is performed using Level 2 inputs as defined above. Gains or losses on settled or expired contracts are recorded in the consolidated statements of income as foreign currency gains or losses. |
Product Warranties | Product Warranties: We provide product warranties with varying terms and durations for the majority of our products. We estimate product warranty costs and accrue for these costs as products are sold with a charge to cost of sales. Factors considered in estimating warranty costs include historical and projected warranty claims, historical and projected cost-per-claim, and knowledge of specific product issues that are outside of typical experience. Warranty accruals are evaluated and adjusted as necessary based on actual claims experience and changes in future claim and cost estimates. Business Combinations: We account for business combinations in accordance with Accounting Standards Codification (“ASC”) ASC 805, “Business Combinations.” We recognize and measure identifiable assets acquired and liabilities assumed based on their estimated fair values. The excess of the consideration transferred over the fair value of the net assets acquired, including identifiable intangible assets, is assigned to goodwill. As additional information becomes available, we may 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. Identifiable finite-lived intangible assets generally consist of customer relationships, unpatented technology, patents and trademarks and trade names and are amortized over their estimated useful lives which generally range from 2 to 15 years. Identifiable indefinite-lived intangible assets generally consist of trademarks and trade names and are subject to impairment testing on at least an annual basis. We estimate the fair value of identifiable intangible assets under income approaches where the fair value models incorporate estimates of future cash flows, estimates of allocations of certain assets and cash flows, estimates of future growth rates, and management’s judgment regarding the applicable discount rates to use to discount such estimates of cash flows. We expense transaction related costs, including legal, consulting, accounting and other costs, in the periods in which the costs are incurred. |
Selling, General and Administrative Costs (SG&A) | Selling, General and Administrative (“SG&A”) Expenses: SG&A expenses include selling, marketing, customer service, product management, design engineering, and other administrative expenses not directly supporting the manufacturing process, as well as depreciation expense associated with non-manufacturing assets. In addition, SG&A expenses include corporate operating expenses for executive management, accounting, tax, treasury, corporate development, human resources, information technology, investor relations, legal, internal audit and risk management. |
Advertising Costs | Advertising Costs: We incurred advertising costs of $2.7, $4.0, and $3.7 for the years ended December 31, 2020, 2019 and 2018, respectively. Such costs are expensed as incurred and included in SG&A expenses in the consolidated statements of income. |
Research and Development Costs | Research and Development Costs: We incurred research and development costs of $9.1, $9.2, and $8.7 for the years ended December 31, 2020, 2019 and 2018, respectively. Such costs are expensed as incurred and included in SG&A expenses in the consolidated statements of income. |
Foreign Currency Translation | Foreign Currency Translation: The functional currency for the majority of our foreign operations is the applicable local currency. The translation from the applicable foreign currencies to U.S. dollars is performed for asset and liability accounts using exchange rates in effect at the balance sheet date and for revenue and expense accounts using the average exchange rate during the period. The resulting translation adjustments are recorded as a component of other comprehensive income (loss) in the consolidated statements of comprehensive income. Certain of our foreign entities remeasure from local to functional currencies, which is then translated to the reporting currency of the Company. Remeasurement from local to functional currencies is included in cost of sales or foreign currency loss in the consolidated statements of income. Gains or losses resulting from foreign currency transactions are charged to net income in the consolidated statements of income as incurred. |
Income Taxes | Income Taxes: The Company and its U.S. subsidiaries file a consolidated federal income tax return. Deferred income taxes are provided for temporary differences between financial reporting and the consolidated tax return in accordance with the liability method. A valuation allowance is provided against net deferred tax assets when conditions indicate that it is more likely than not that the benefit related to such assets will not be realized. In assessing the need for a valuation allowance against deferred tax assets, we consider all available evidence, including past operating results, estimates of future taxable income, and the feasibility of tax planning strategies. In the event that we change our determination as to the amount of deferred tax assets that can be realized, the valuation allowance will be adjusted with a corresponding impact to the provision for income taxes in the period in which such determination is made. We utilize a two-step approach for the recognition and measurement of uncertain tax positions. The first step is to evaluate the tax position and determine whether it is more likely than not that the position will be sustained upon examination by tax authorities. The second step is to measure the tax benefit as the largest amount that is more likely than not of being realized upon settlement. Interest and penalties related to income taxes are accounted for as income tax expense in the consolidated statements of income. We have accounted for the tax effects of the Tax Cuts and Jobs Act (“Tax Act”), which was signed into law on December 22, 2017. The Tax Act, among other things, reduced the U.S. federal corporate tax rate from 35% to 21%, requires companies to pay a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries, requires a current inclusion in U.S. federal taxable income of certain earnings of foreign corporations, and creates a new limitation on deductible interest expense. In 2017, we accounted for the tax effects of the Tax Cuts and Jobs Act under the guidance of SAB 118, on a provisional basis. In 2018, we finalized our analyses under SAB 118. For further information, see Note 16, “Income Taxes.” We are subjected to a tax on Global Intangible Low Taxed Income (“GILTI”), which we record as a period cost as incurred. |
Share-based Compensation | Share-based Compensation: We measure share-based compensation expense for share-based payments to employees and directors, including grants of employee stock options, restricted stock, restricted stock units and performance units based on the grant-date fair value. The fair value of stock options is calculated using the Black-Scholes pricing model and is recognized on an accelerated basis over the vesting period. The grant-date fair value calculation under the Black-Scholes pricing model requires the use of variables such as exercise term of the option, future volatility, dividend yield, and risk-free interest rate. The fair value of restricted stock and restricted stock units is based on Chart’s market price on the date of grant and is generally recognized on an accelerated basis over the vesting period. The fair value of performance units is based on Chart’s market price on the date of grant and pre-determined performance conditions as determined by the Compensation Committee of the Board of Directors and is recognized on a straight-line basis over the performance measurement period based on the probability that the performance conditions will be achieved. We reassess the vesting probability of performance units each reporting period and adjust share-based compensation expense based on our probability assessment. Share-based compensation expense for all awards considers estimated forfeitures. During the year, we may repurchase shares of common stock from equity plan participants to satisfy tax withholding obligations relating to the vesting or payment of equity awards. All such repurchased shares are retired in the period in which the repurchases occur. |
Defined Benefit Pension Plans | Defined Benefit Pension Plans: We sponsor two defined benefit pension plans including the Chart Pension Plan, which has been frozen since February 2006, and a noncontributory defined benefit plan that we acquired as part of the Hudson acquisition (the “Hudson Plan”). The Hudson Plan is closed to new participants and not considered significant to our consolidated financial statements. The funded status is measured as the difference between the fair value of the plan assets and the projected benefit obligation. The change in the funded status of the plan is recognized in the year in which the change occurs through accumulated other comprehensive loss. Our funding policy is to contribute at least the minimum funding amounts required by law. Management has chosen policies according to accounting guidance that allow the use of a calculated value of plan assets, which generally reduces the volatility of expense (income) from changes in pension liability discount rates and the performance of the pension plan’s assets. |
Recently Issued Accounting Standards and Recently Adopted Accounting Standards | Recently Issued Accounting Standards (Not Yet Adopted): In August 2020, the FASB issued ASU 2020-06, “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entities Own Equity (Subtopic 815-40).” This ASU simplifies accounting for convertible instruments by eliminating two of the three models in ASC 470-20 that require separating embedded conversion features from convertible instruments. The guidance is effective for fiscal years beginning after December 15, 2021. We will adopt this guidance effective January 1, 2021 under the modified retrospective adoption approach. The cumulative effect of the change will be recognized as an adjustment to the opening balance of retained earnings at the date of adoption. As a result of the adoption, our convertible notes due November 2024 will no longer be bifurcated into separate liability and equity components in our balance sheet. Rather, the $258.8 principal amount of our convertible notes due November 2024 will be classified as a liability only. Furthermore, interest expense related to the accretion of our convertible notes due November 2024 will no longer be recognized. As further described in Note 10, “Debt and Credit Arrangements,” on December 31, 2020, we amended the Indenture governing our convertible notes due November 2024 to eliminate share settlement thus leaving us with two settlement options: (1) cash settlement or (2) cash for par and any combination of cash and shares for the excess settlement amount above the $258.8 principal amount of our convertible notes due November 2024. The guidance requires usage of the if-converted method to compute diluted earnings per share for our convertible notes due November 2024, however, based on the terms of the amended Indenture and the cessation of interest accretion expense recognition from the transition at adoption, the if-converted method was modified such that interest expense is no longer added to the numerator, and the denominator only includes incremental shares that would be issued upon conversion. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” This ASU simplifies the accounting for modifying contracts (including those in hedging relationships) that refer to LIBOR and other interbank offered rates that are expected to be discontinued due to reference rate reform. The amendments in this ASU are effective for all entities as of March 12, 2020 through December 31, 2022. An entity may elect to apply the amendments for contract modifications by Topic or Industry Subtopic as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Once elected for a Topic or an Industry Subtopic, the amendments in this ASU must be applied prospectively for all eligible contract modifications for that Topic or Industry Subtopic. We expect application of the amendments to impact accounting for our senior secured revolving credit facility due June 2024. We are currently assessing the effect this ASU will have on our financial position, results of operations, and disclosures. Recently Adopted Accounting Standards: In January 2020, the FASB issued ASU 2020-01, “Investments – Equity Securities (Topic 321), Investments – Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815).” This ASU clarifies the interactions between the measurement alternative in Topic 321, the equity method of accounting in Topic 323 and the application of guidance for certain forward contracts and purchased options that upon settlement or exercise would be accounted for under the equity method of accounting in Topic 815. This guidance is effective for fiscal years ending after December 15, 2020. We adopted this guidance effective January 1, 2021. The adoption of this guidance did not have a material impact on our financial position, results of operations or disclosures. In August 2018, the FASB issued 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. We adopted this guidance effective January 1, 2020. The adoption of this guidance did not have a material impact on our financial position, results of operations or 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. We early adopted this guidance effective January 1, 2020. The adoption of this guidance did not have a significant impact on our annual 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. We adopted this guidance effective January 1, 2020. The adoption of this guidance did not impact our financial position, results of operations or 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 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. We adopted this guidance effective January 1, 2020. The adoption of this guidance did not have a material impact on our financial position, results of operations or disclosures. We maintain an allowance for doubtful accounts to provide for the estimated amount of receivables that will not be collected as discussed above. In addition, we estimate expected credit losses based on historical loss information then adjust the estimates based on current, reasonable and supportable forecast economic conditions. 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”), we 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 operating ROU assets, primarily consisting of leased facilities and equipment and operating lease liabilities of $34.8 as of the Commencement Date. The adoption did not have a material impact on our consolidated statement of income and comprehensive income or cash flows related to existing leases as of the Commencement Date. 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. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summarized Financial Information of Discontinued Operations | The following table represents income from discontinued operations, net of tax: Year Ended December 31, 2020 (1) 2019 (1) 2018 (2) Sales $ 59.9 $ 83.6 $ 237.5 Cost of sales 31.8 44.3 159.5 Selling, general and administrative expenses 7.8 10.4 41.9 Amortization expense — — 2.3 Operating income (3) 20.3 28.9 33.8 Interest expense, net 7.4 10.6 3.2 Other (income) expense, net (0.8) 0.1 0.4 Income before income taxes 13.7 18.2 30.2 Income tax (benefit) expense (1.3) 3.2 9.0 Income from discontinued operations before gain on sale of businesses 15.0 15.0 21.2 Gain on sale of businesses, net of taxes (4) 224.2 — 34.3 Income from discontinued operations, net of tax $ 239.2 $ 15.0 $ 55.5 _______________ (1) Includes results of operations for the cryobiological products business only. (2) Includes results of operations for both the cryobiological products and oxygen-related products businesses. (3) Includes depreciation expense of $0.7, $1.1 and $2.7 for the years ended December 31, 2020, 2019 and 2018, respectively. (4) Gain on sale of businesses is net of taxes of $25.2 and $2.6 for the years ended December 31, 2020 and 2018, respectively. The following table represents the assets and liabilities from discontinued operations and represents the statement of financial position for the cryobiological products business only: December 31, 2019 Accounts receivable, net $ 11.0 Inventories, net 9.4 Prepaid expenses 0.3 Other current assets 0.9 Current assets of discontinued operations $ 21.6 Property, plant, and equipment, net $ 6.8 Goodwill 33.5 Identifiable intangible assets, net 6.7 Non-current assets of discontinued operations $ 47.0 Accounts payable $ 4.2 Customer advances and billings in excess of contract revenue 0.1 Accrued salaries, wages, and benefits 1.5 Current portion of warranty reserve 0.1 Current liabilities of discontinued operations $ 5.9 Other long-term liabilities $ 0.2 Non-current liabilities of discontinued operations $ 0.2 The following table presents a summary of cash flows related to discontinued operations for the following periods: Year Ended December 31, 2020 (1) 2019 (1) 2018 (2) Net cash provided by (used in): Operating activities $ 18.3 $ 16.6 $ (11.8) Investing activities 316.7 (0.9) 132.3 Net cash provided by discontinued operations $ 335.0 $ 15.7 $ 120.5 _______________ (1) Includes cash flows of the cryobiological products business only. (2) Includes cash flows of both the cryobiological products and oxygen-related products businesses. |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Segment Financial Information Year Ended December 31, 2020 Cryo Tank Solutions Heat Transfer Systems Specialty Products Repair, Service & Leasing Intersegment Eliminations Corporate Consolidated Sales $ 415.8 $ 369.8 $ 242.6 $ 158.3 $ (9.4) $ — $ 1,177.1 Depreciation and amortization expense 18.5 48.3 4.8 10.9 — 2.0 84.5 Operating income (loss) (1) (2) (3) 52.5 11.2 60.7 30.3 — (62.5) 92.2 Year Ended December 31, 2019 Cryo Tank Solutions Heat Transfer Systems Specialty Products Repair, Service & Leasing Intersegment Eliminations Corporate Consolidated Sales $ 409.9 $ 441.7 $ 207.9 $ 162.6 $ (6.6) $ — $ 1,215.5 Depreciation and amortization expense 19.5 42.0 4.9 9.7 — 1.6 77.7 Operating income (loss) (1) (4) 25.7 17.7 48.1 27.9 — (67.4) 52.0 Year Ended December 31, 2018 Cryo Tank Solutions Heat Transfer Systems Specialty Products Repair, Service & Leasing Intersegment Eliminations Corporate Consolidated Sales $ 371.4 $ 289.8 $ 184.5 $ 160.4 $ (2.2) $ — $ 1,003.9 Depreciation and amortization expense 13.9 21.7 4.7 7.9 — 1.5 49.7 Operating income (loss) (1) (5) (6) 41.1 8.7 44.8 21.2 — (51.3) 64.5 _______________ (1) Restructuring costs (credits) for the years ended: • December 31, 2020 were $13.6 ($2.7 – Cryo Tank Solutions $7.4 – Heat Transfer Systems, $0.7 – Specialty Products, $0.2 – Repair, Service & Leasing and $2.6 – Corporate); • December 31, 2019 were $15.6 ($9.1 – Cryo Tank Solutions, $4.5 – Heat Transfer Systems, $0.3 – Specialty Products, $1.5 – Repair, Service & Leasing and $0.2 – Corporate); and • December 31, 2018 were $4.3 ($1.7 – Cryo Tank Solutions, $0.7 – Heat Transfer Systems, $(0.3) – Specialty Products, $(0.1) – Repair, Service & Leasing and $2.3 – Corporate). (2) Includes transaction-related costs of $2.6 for the year ended December 31, 2020, which were mainly related to the Sustainable Energy Solutions, Inc., BlueInGreen, LLC and Alabama Trailers acquisitions. (3) Includes $16.0 impairment of our trademarks and trade names indefinite-lived intangible assets related to the AXC business in our Heat Transfer Systems segment. (4) Includes transaction-related costs of $5.4 for the years ended December 31, 2019, which were mainly related to the AXC acquisition. Includes transaction-related costs of $4.3 related to integration activities for previous acquisitions for the year ended December 31, 2019. (5) Includes transaction-related costs of $2.1 recorded in Corporate for the year ended December 31, 2018. (6) During the year ended December 31, 2018, we recorded net severance costs of $2.3 in Corporate primarily related to headcount reductions associated with a previous strategic realignment of our segment structure, which includes $1.8 in payroll severance costs partially offset by a $0.9 credit due to related share-based compensation forfeitures for 2018. Includes net severance costs of $1.4 related to the departure of our former CEO, which includes $3.2 in payroll severance costs partially offset by a $1.8 credit due to related share-based compensation forfeitures for 2018. Sales by Geography Net sales by geographic area are reported by the destination of sales. Year Ended December 31, 2020 Cryo Tank Solutions Heat Transfer Systems Specialty Products Repair, Service & Leasing Intersegment Eliminations Consolidated North America (1) $ 168.0 $ 259.4 $ 98.9 $ 111.2 $ (4.4) $ 633.1 Europe, Middle East, Africa and India 165.3 39.3 121.8 38.1 (3.5) 361.0 Asia-Pacific (2) 76.1 69.3 21.4 8.4 (1.4) 173.8 Rest of the World 6.4 1.8 0.5 0.6 (0.1) 9.2 Total $ 415.8 $ 369.8 $ 242.6 $ 158.3 $ (9.4) $ 1,177.1 Year Ended December 31, 2019 Cryo Tank Solutions Heat Transfer Systems Specialty Products Repair, Service & Leasing Intersegment Eliminations Consolidated North America (1) $ 173.6 $ 311.2 $ 100.4 $ 128.4 $ (3.4) $ 710.2 Europe, Middle East, Africa and India 163.8 71.6 91.2 23.7 (2.2) 348.1 Asia-Pacific (2) 67.2 57.3 15.6 9.7 (0.9) 148.9 Rest of the World 5.3 1.6 0.7 0.8 (0.1) 8.3 Total $ 409.9 $ 441.7 $ 207.9 $ 162.6 $ (6.6) $ 1,215.5 Year Ended December 31, 2018 Cryo Tank Solutions Heat Transfer Systems Specialty Products Repair, Service & Leasing Intersegment Eliminations Consolidated North America (1) $ 164.0 $ 237.1 $ 100.5 $ 122.6 $ (1.0) $ 623.2 Europe, Middle East, Africa and India 120.0 24.1 65.2 30.0 (0.9) 238.4 Asia-Pacific (2) 83.8 27.2 18.3 7.1 (0.3) 136.1 Rest of the World 3.6 1.4 0.5 0.7 — 6.2 Total $ 371.4 $ 289.8 $ 184.5 $ 160.4 $ (2.2) $ 1,003.9 (1) Consolidated sales in the United States were $576.8, $638.0 and $570.6 for the twelve month periods ending December 31, 2020, 2019 and 2018, respectively and represent 49.0%, 52.5% and 56.8% of consolidated sales for the same periods, respectively. (2) Consolidated sales in China were $100.7, $80.5 and $101.6 for the twelve months ended December 31, 2020, 2019 and 2018, respectively and represent 8.6%, 6.6% and 10.1% of consolidated sales for the same periods, respectively. December 31, 2020 2019 Cryo Tank Solutions $ 399.2 $ 374.4 Heat Transfer Systems 247.2 328.9 Specialty Products 178.3 109.7 Repair, Service & Leasing 142.6 106.6 Total assets of reportable segments 967.3 919.6 Goodwill (1) 865.9 811.4 Identifiable intangible assets, net (1) 493.1 522.4 Corporate 244.2 159.4 Discontinued operations — 68.6 Total assets $ 2,570.5 $ 2,481.4 _______________ |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | Geographic Information Property, plant and equipment, net as of December 31, 2020 2019 United States $ 223.9 $ 222.2 Foreign Italy 69.9 56.4 China 61.5 64.2 Czech Republic 29.0 25.8 Germany 16.1 15.5 India 14.1 13.7 Total Foreign 190.6 175.6 Total $ 414.5 $ 397.8 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue by Timing | The following tables represent a disaggregation of revenue by timing of revenue along with the reportable segment for each category: Year Ended December 31, 2020 Cryo Tank Solutions Heat Transfer Systems Specialty Products Repair, Service & Leasing Intersegment Eliminations Consolidated Point in time $ 378.3 $ 28.6 $ 184.6 $ 110.3 $ (4.5) $ 697.3 Over time 37.5 341.2 58.0 48.0 (4.9) 479.8 Total $ 415.8 $ 369.8 $ 242.6 $ 158.3 $ (9.4) $ 1,177.1 Year Ended December 31, 2019 Cryo Tank Solutions Heat Transfer Systems Specialty Products Repair, Service & Leasing Intersegment Eliminations Consolidated Point in time $ 385.2 $ 26.3 $ 161.2 $ 117.6 $ (5.2) $ 685.1 Over time 24.7 415.4 46.7 45.0 (1.4) 530.4 Total $ 409.9 $ 441.7 $ 207.9 $ 162.6 $ (6.6) $ 1,215.5 Year Ended December 31, 2018 Cryo Tank Solutions Heat Transfer Systems Specialty Products Repair, Service & Leasing Intersegment Eliminations Consolidated Point in time $ 366.9 $ 60.3 $ 150.3 $ 102.5 $ (2.2) $ 677.8 Over time 4.5 229.5 34.2 57.9 — 326.1 Total $ 371.4 $ 289.8 $ 184.5 $ 160.4 $ (2.2) $ 1,003.9 |
Changes in Contract Assets and Contract Liabilities Balances | The following table represents changes in our contract assets and contract liabilities balances: December 31, 2020 December 31, 2019 Year-to-date Change ($) Year-to-date Change (%) Contract assets Accounts receivable, net of allowances $ 200.8 $ 191.6 $ 9.2 4.8 % Unbilled contract revenue 79.4 86.1 (6.7) (7.8) % Contract liabilities Customer advances and billings in excess of contract revenue $ 118.9 $ 127.7 $ (8.8) (6.9) % Long-term deferred revenue 1.9 0.8 1.1 137.5 % |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments, All Other Investments [Abstract] | |
Summary of Investments | The following table summarizes the components of investments: December 31, 2020 2019 Investment in equity securities $ 73.6 $ 6.9 Equity investments 5.3 6.5 Total investments $ 78.9 $ 13.4 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Summary of Components of Inventory | The following table summarizes the components of inventory: December 31, 2020 2019 Raw materials and supplies $ 124.7 $ 97.9 Work in process 57.8 47.2 Finished goods 65.9 64.9 Total inventories, net $ 248.4 $ 210.0 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Components of Property, Plant, and Equipment | The following table summarizes the components of property, plant and equipment: December 31, Classification Estimated Useful Life 2020 2019 Land and buildings 20-35 years $ 346.5 $ 323.0 Machinery and equipment 3-12 years 214.4 198.6 Computer equipment, furniture and fixtures 3-7 years 40.8 45.5 Right-of-use assets 44.4 42.3 Construction in process 18.2 21.0 Total property, plant and equipment, gross 664.3 630.4 Less: accumulated depreciation (249.8) (232.6) Total property, plant and equipment, net $ 414.5 $ 397.8 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill by Segment | The following table represents the activity in goodwill net of accumulated goodwill impairment loss (“goodwill, net”) and accumulated goodwill impairment loss by segment for 2020 (1) : D&S East D&S West E&C Cryogenics E&C FinFans Cryo Tank Solutions Heat Transfer Systems Specialty Products Repair, Service & Leasing Consoli-dated Goodwill, net balance at December 31, 2019 $ 117.0 $ 118.6 $ 176.2 $ 399.6 $ — $ — $ — $ — $ 811.4 Foreign currency translation adjustments and other 4.5 — — 1.3 — — — — 5.8 Purchase price adjustments — — — 0.4 — 0.4 Goodwill, net balance at September 30, 2020 121.5 118.6 176.2 401.3 — — — — 817.6 Reallocation, D&S East (121.5) — — — 43.3 — 64.6 13.6 — Reallocation, D&S West — (118.6) — — 43.2 — 63.6 11.8 — Reallocation, E&C Cryogenics — — (176.2) — — 137.0 5.6 33.6 — Reallocation, E&C FinFans — — — (401.3) — 295.6 — 105.7 — Goodwill, net balance at October 1, 2020 — — — — 86.5 432.6 133.8 164.7 817.6 Foreign currency translation adjustments and other — — — — 6.7 2.6 (0.2) 0.4 9.5 Goodwill acquired during the period — — — — — — 38.8 — 38.8 Goodwill, net balance at December 31, 2020 $ — $ — $ — $ — $ 93.2 $ 435.2 $ 172.4 $ 165.1 $ 865.9 Accumulated goodwill impairment loss at December 31, 2019 $ — $ 64.4 $ 40.9 $ 23.7 $ — $ — $ — $ — $ 129.0 Accumulated goodwill impairment loss at September 30, 2020 — 64.4 40.9 23.7 — — — — 129.0 Reallocation, D&S West — (64.4) — — 23.5 — 34.5 6.4 — Reallocation, E&C Cryogenics — — (40.9) — — 31.8 1.3 7.8 — Reallocation, E&C FinFans — — — (23.7) — 17.5 — 6.2 — Accumulated goodwill impairment loss at December 31, 2020 $ — $ — $ — $ — $ 23.5 $ 49.3 $ 35.8 $ 20.4 $ 129.0 _______________ (1) The prior segments’ goodwill and accumulated goodwill impairment loss at December 31, 2019 were reassigned to four new reporting units, Cryo Tank Solutions, Heat Transfer Systems, Specialty Products and Repair, Service & Leasing, based on their relative fair values as of October 1, 2020. The following table represents the activity in goodwill, net and accumulated goodwill impairment loss by segment for 2019 (1) : D&S East D&S West E&C E&C Cryogenics E&C FinFans Consolidated Goodwill, net balance at December 31, 2018 $ 73.6 $ 117.8 $ 295.8 $ — $ — $ 487.2 Reallocation, E&C — — (295.8) 183.5 112.3 — Foreign currency translation adjustments and other (0.9) — — (0.6) (0.2) (1.7) Goodwill acquired during the year — — — — 287.5 287.5 Purchase price adjustments (2) 44.3 0.8 — (6.7) — 38.4 Goodwill, net balance at December 31, 2019 $ 117.0 $ 118.6 $ — $ 176.2 $ 399.6 $ 811.4 Accumulated goodwill impairment loss at December 31, 2018 $ — $ 64.4 $ 64.6 $ — $ — $ 129.0 Accumulated goodwill impairment loss at December 31, 2019 $ — $ 64.4 $ — $ 40.9 $ 23.7 $ 129.0 _______________ (1) The prior E&C segment goodwill and accumulated goodwill impairment loss at December 31, 2018 were reassigned to two reporting units, E&C Cryogenics and E&C FinFans, based on their relative fair values as of July 1, 2019. (2) During 2019, we recorded purchase price adjustments related to previous acquisitions including an increase of $44.3 in D&S East, a decrease of $6.7 in E&C Cryogenics and an increase of $0.8 in D&S West. |
Schedule of Indefinite-Lived Intangible Assets, Excluding Goodwill | 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) : December 31, 2020 December 31, 2019 Weighted-average Estimated Useful Life Gross Accumulated Gross Accumulated Finite-lived intangible assets: Customer relationships 13 years $ 302.5 $ (59.9) $ 380.3 $ (115.0) Unpatented technology 13 years 110.4 (22.3) 90.1 (13.0) Patents and other 5 years 8.4 (1.8) 20.9 (9.8) Trademarks and trade names 14 years 3.6 (1.4) 2.4 (1.2) Land rights 50 years 11.1 (1.4) 11.0 (1.2) Total finite-lived intangible assets 13 years $ 436.0 $ (86.8) $ 504.7 $ (140.2) Indefinite-lived intangible assets: Trademarks and trade names $ 143.9 $ — $ 157.9 $ — Total intangible assets $ 579.9 $ (86.8) $ 662.6 $ (140.2) _______________ (1) Amounts include the impact of foreign currency translation. Fully amortized or impaired amounts are written off. |
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) : December 31, 2020 December 31, 2019 Weighted-average Estimated Useful Life Gross Accumulated Gross Accumulated Finite-lived intangible assets: Customer relationships 13 years $ 302.5 $ (59.9) $ 380.3 $ (115.0) Unpatented technology 13 years 110.4 (22.3) 90.1 (13.0) Patents and other 5 years 8.4 (1.8) 20.9 (9.8) Trademarks and trade names 14 years 3.6 (1.4) 2.4 (1.2) Land rights 50 years 11.1 (1.4) 11.0 (1.2) Total finite-lived intangible assets 13 years $ 436.0 $ (86.8) $ 504.7 $ (140.2) Indefinite-lived intangible assets: Trademarks and trade names $ 143.9 $ — $ 157.9 $ — Total intangible assets $ 579.9 $ (86.8) $ 662.6 $ (140.2) _______________ (1) Amounts include the impact of foreign currency translation. Fully amortized or impaired amounts are written off. |
Future Amortization Expense | We estimate amortization expense to be recognized during the next five years as follows: For the Year Ending December 31, 2021 $ 36.7 2022 34.5 2023 34.4 2024 34.0 2025 33.1 |
Schedule of Government Grants | China Government Grants are presented in our consolidated balance sheets as follows: December 31, 2020 2019 Current $ 0.5 $ 0.5 Long-term 7.3 7.2 Total China Government Grants $ 7.8 $ 7.7 |
Debt and Credit Arrangements (T
Debt and Credit Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Summary of Outstanding Borrowings and Costs | The following table represents the components of our borrowings: December 31, 2020 2019 Senior secured revolving credit facilities and term loan: Term loan due June 2024 (1) $ 103.1 $ 447.2 Senior secured revolving credit facility due June 2024 (2) 123.5 119.0 Unamortized debt issuance costs (5.0) (5.5) Senior secured revolving credit facility and term loan, net of debt issuance costs 221.6 560.7 Convertible notes due November 2024: Principal amount 258.8 258.8 Unamortized discount (34.8) (42.8) Unamortized debt issuance costs (3.1) (3.8) Convertible notes due November 2024, net of unamortized discount and debt issuance costs 220.9 212.2 Foreign facilities — 4.4 Total debt, net of unamortized discount and debt issuance costs 442.5 777.3 Less: current maturities (3) 220.9 16.3 Long-term debt $ 221.6 $ 761.0 _______________ (1) As of December 31, 2020, there was $103.1 in borrowings outstanding under the term loan bearing an interest rate of 2.50%. (2) The senior secured revolving credit facility due 2024 includes $100.0 sub limit for letters of credit, a $250.0 sub limit for discretionary letters of credit and a $50.0 sub-limit for swingline loans. As of December 31, 2020, there was $123.5 in borrowings outstanding under the senior secured revolving credit facility due 2024 bearing a weighted-average interest rate of 2.1% and $63.3 in letters of credit and bank guarantees outstanding supported by the senior secured revolving credit facility due 2024. As of December 31, 2020, the senior secured revolving credit facility due 2024 had availability of $363.2. |
Schedule of Interest Expense and Financing Cost Amortization | The following table summarizes interest expense and financing costs amortization related to the 2024 Credit Facilities and our previous senior secured revolving credit facility: Year Ended December 31, 2020 2019 2018 Interest expense, term loan due June 2024 $ 4.8 $ 3.1 $ — Interest expense, senior secured revolving credit facilities 2.2 2.2 11.8 Interest expense, senior secured revolving credit facilities and term loan due June 2024 $ 7.0 $ 5.3 $ 11.8 Financing costs amortization, senior secured revolving credit facilities and term loan due 2024 $ 3.6 $ 2.0 $ 0.6 |
Schedule of Interest Accretion, Loss on Extinguishment, and Amortization of Financing Costs | 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: Year Ended December 31, 2020 2019 2024 Notes, interest accretion of convertible notes discount $ 8.0 $ 7.6 2024 Notes, 1.0% contractual interest coupon 2.6 2.6 2024 Notes, total interest expense $ 10.6 $ 10.2 2024 Notes, financing costs amortization $ 0.7 $ 0.7 |
Product Warranties (Tables)
Product Warranties (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Product Warranties Disclosures [Abstract] | |
Rollforward of Consolidated Warranty Reserve | The following table represents changes in our consolidated warranty reserve: Year Ended December 31, 2020 2019 2018 Beginning balance $ 11.5 $ 8.7 $ 11.6 Issued – warranty expense 6.6 7.4 4.9 Change in estimate – warranty expense — — (1.6) Warranty usage (6.2) (4.6) (6.2) Ending balance $ 11.9 $ 11.5 $ 8.7 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired In Business Combination | The following table summarizes the fair values of the assets acquired and liabilities assumed in the AXC acquisition as of the acquisition date: As Reported December 31, 2019 Adjustments Fair Value Net assets acquired: Identifiable intangible assets $ 256.4 $ — $ 256.4 Goodwill 287.5 0.4 287.9 Property, plant and equipment 34.2 — 34.2 Other assets 53.1 — 53.1 Liabilities (31.5) (0.4) (31.9) Net assets acquired $ 599.7 $ — $ 599.7 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | Information regarding identifiable intangible assets acquired in the AXC acquisition is presented below: Weighted-average Estimated Useful Life Estimated Asset Fair Value Finite-lived intangible assets: Customer relationships 14.0 years $ 139.1 Unpatented technology 10.0 years 42.1 Backlog (1) 1.0 year 19.2 Other identifiable intangible assets (1) 4.0 years 1.0 Total finite-lived intangible assets acquired 11.0 years 201.4 Indefinite-lived intangible assets: Trademarks and trade names 55.0 Total identifiable intangible assets acquired $ 256.4 _______________ (1) Backlog and other identifiable intangible assets is included in “Patents and other” in Note 9, “Goodwill and Intangible Assets.” |
Pro Forma Disclosures | The following table presents pro forma sales, net income attributable to Chart Industries, Inc., and net income attributable to Chart Industries, Inc. per common share data assuming AXC was acquired at the beginning of the 2018 fiscal year: Year Ended December 31, 2019 2018 Pro forma sales $ 1,364.3 $ 1,211.1 Pro forma net income attributable to Chart Industries, Inc. 56.3 72.0 Pro forma net income attributable to Chart Industries, Inc. per common share, basic $ 1.66 $ 2.05 Pro forma net income attributable to Chart Industries, Inc. per common share, diluted 1.60 1.99 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) and Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive income (loss) are as follows: December 31, 2020 Foreign currency translation adjustments Pension liability adjustments, net of taxes Accumulated other comprehensive income (loss) Beginning Balance $ (25.0) $ (10.9) $ (35.9) Other comprehensive income (loss) 38.8 (1.7) 37.1 Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes — 1.2 1.2 Net current-period other comprehensive income (loss), net of taxes 38.8 (0.5) 38.3 Ending Balance $ 13.8 $ (11.4) $ 2.4 December 31, 2019 Foreign currency translation adjustments Pension liability adjustments, net of taxes Accumulated other comprehensive income (loss) Beginning Balance $ (17.5) $ (12.4) $ (29.9) Other comprehensive (loss) income (7.5) 1.1 (6.4) Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes — 0.4 0.4 Net current-period other comprehensive (loss) income, net of taxes (7.5) 1.5 (6.0) Ending Balance $ (25.0) $ (10.9) $ (35.9) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Calculation of Net Income (loss) Per Share | The following table presents calculations of net income per share of common stock: Year Ended December 31, 2020 2019 2018 Net income attributable to Chart Industries, Inc. Income from continuing operations $ 68.9 $ 31.4 $ 32.5 Income from discontinued operations 239.2 15.0 55.5 Net income attributable to Chart Industries, Inc. $ 308.1 $ 46.4 $ 88.0 Earnings per common share – basic: Income from continuing operations $ 1.95 $ 0.93 $ 1.05 Income from discontinued operations 6.76 0.44 1.78 Net income attributable to Chart Industries, Inc. $ 8.71 $ 1.37 $ 2.83 Earnings per common share – diluted: Income from continuing operations $ 1.89 $ 0.89 $ 1.01 Income from discontinued operations 6.56 0.43 1.72 Net income attributable to Chart Industries, Inc. $ 8.45 $ 1.32 $ 2.73 Weighted average number of common shares outstanding – basic 35.38 33.91 31.05 Incremental shares issuable upon assumed conversion and exercise of share-based awards 0.26 0.42 0.77 Incremental shares issuable due to dilutive effect of the convertible notes 0.53 0.82 0.38 Incremental shares issuable due to dilutive effect of warrants 0.28 0.02 — Weighted average number of common shares outstanding – diluted 36.45 35.17 32.20 |
Schedule of Antidilutive Securities | Diluted earnings per share does not consider the following potential common shares as the effect would be anti-dilutive: Year Ended December 31, 2020 2019 2018 Share-based awards 0.27 0.15 0.22 Convertible note hedge and capped call transactions (1) 0.30 0.82 0.38 Warrants 4.41 — 5.18 Total anti-dilutive securities 4.98 0.97 5.78 _______________ (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 10, “Debt and Credit Arrangements.” |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Income from continuing operations before income taxes consists of the following: Year Ended December 31, 2020 2019 2018 United States $ 48.0 $ 24.4 $ 8.2 Foreign 37.2 10.2 33.5 Income from continuing operations before income taxes $ 85.2 $ 34.6 $ 41.7 |
Schedule of Components of Income Tax Expense (Benefit) | Significant components of income tax expense (benefit), net are as follows: Year Ended December 31, 2020 2019 2018 Current: Federal $ (0.2) $ 4.9 $ (3.2) State and local 1.9 2.7 (0.2) Foreign 12.2 11.4 5.3 Total current 13.9 19.0 1.9 Deferred: Federal 7.5 (2.0) 3.8 State and local (2.9) (5.5) 1.5 Foreign (3.6) (8.7) — Total deferred 1.0 (16.2) 5.3 Total income tax expense (benefit), net $ 14.9 $ 2.8 $ 7.2 |
Schedule of Effective Income Tax Rate Reconciliation | The reconciliation of income taxes computed at the U.S. federal statutory tax rate to income tax expense (benefit) is as follows: Year Ended December 31, 2020 2019 2018 Income tax expense at U.S. statutory rate $ 17.9 $ 7.3 $ 8.7 State income taxes, net of federal tax benefit (0.9) (2.3) 1.2 Foreign income, net of credit on foreign taxes — (1.3) 0.7 Effective tax rate differential of earnings outside of U.S. 2.4 — 2.1 Change in valuation allowance (4.2) 1.0 38.4 Research & experimentation credits (1.0) (0.9) (0.8) Foreign derived intangible income (0.2) (1.2) — Net non-deductible items 1.2 2.3 0.4 Change in uncertain tax positions (0.6) — 0.2 Share-based compensation (1.7) (2.8) (3.3) Capital loss carryover — — (29.7) Tax effect of 2017 tax reform federal rate change (0.2) — (11.3) Tax effect of carryforward foreign tax credits — — (0.6) Other items 2.2 0.7 1.2 Income tax expense $ 14.9 $ 2.8 $ 7.2 |
Schedule of Deferred Tax Assets and Liabilities | Significant components of our deferred tax assets and liabilities are as follows: December 31, 2020 2019 Deferred tax assets: Accruals and reserves $ 15.7 $ 19.4 Pensions 2.6 2.9 Inventory 3.5 2.3 Share-based compensation 4.4 5.3 Tax credit carryforwards 10.6 15.5 Foreign net operating loss carryforwards 22.4 24.4 State net operating loss carryforwards 1.9 0.3 Capital loss carryover — 29.4 Convertible notes 0.7 0.7 Operating leases 8.1 8.5 Other – net 7.4 5.5 Total deferred tax assets before valuation allowances 77.3 114.2 Valuation allowances (33.9) (68.2) Total deferred tax assets, net of valuation allowances $ 43.4 $ 46.0 Deferred tax liabilities: Property, plant and equipment $ 27.8 $ 22.2 Goodwill and intangible assets 69.1 74.9 Other – net 5.2 1.0 Total deferred tax liabilities $ 102.1 $ 98.1 Net deferred tax liabilities $ 58.7 $ 52.1 The net deferred tax liability is classified as follows: Other assets $ (1.5) $ — Long-term deferred tax liabilities 60.2 52.1 Net deferred tax liabilities $ 58.7 $ 52.1 |
Schedule of Reconciliation of Unrecognized Tax Benefits | The reconciliation of beginning to ending unrecognized tax benefits is as follows: Year Ended December 31, 2020 2019 2018 Unrecognized tax benefits at beginning of the year $ 2.4 $ 2.3 $ 0.8 (Reductions) additions for tax positions taken during the prior period (0.6) (0.1) 0.9 Additions for tax positions taken during the current period 0.2 0.2 1.4 Reductions relating to settlements with taxing authorities (0.1) — (0.8) Unrecognized tax benefits at end of the year $ 1.9 $ 2.4 $ 2.3 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Net Periodic Pension Expenses | The components of net periodic pension (income) expense are as follows : Year Ended December 31, 2020 2019 2018 Interest cost $ 1.8 $ 2.2 $ 2.1 Expected return on plan assets (3.3) (2.9) (3.3) Amortization of net loss 1.2 1.3 0.9 Total net periodic pension (income) expense $ (0.3) $ 0.6 $ (0.3) |
Schedule of Changes in Projected Benefit Obligation and Plan Assets, Funded Status and Amounts Recognized on the Balance Sheet | The changes in the projected benefit obligation and plan assets, the funded status of the plans and the amounts recognized in the consolidated balance sheets are as follows: December 31, 2020 2019 Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 58.5 $ 53.6 Interest cost 1.8 2.2 Assumption changes 5.2 5.4 Benefits paid (2.7) (2.5) Actuarial gains (0.3) (0.2) Projected benefit obligation at year end 62.5 58.5 Change in plan assets: Fair value of plan assets at beginning of year 49.1 42.8 Actual return 6.4 8.4 Employer contributions 1.1 0.4 Benefits paid (2.7) (2.5) Fair value of plan assets at year end 53.9 49.1 Funded status (Accrued pension liabilities) (1) $ (8.6) $ (9.4) Unrecognized actuarial loss recognized in accumulated other comprehensive income (loss) $ 14.9 $ 14.2 _______________ (1) Accrued pension liabilities on the consolidated balance sheets for both December 31, 2020 and 2019 were $1.0 and $0.8, respectively, related to our Hudson Products business, which is not included in the table above. |
Schedule of Assumptions Used | The actuarial assumptions used in determining pension plan information are as follows: December 31, 2020 2019 2018 Assumptions used to determine benefit obligation at year end: Discount rate 2.4 % 3.2 % 4.2 % Assumptions used to determine net periodic benefit cost: Discount rate 3.2 % 4.2 % 3.7 % Expected long-term weighted-average rate of return on plan assets 7.0 % 7.0 % 7.0 % |
Schedule of Target Allocation by Asset Category and Fair Value | The target allocations by asset category and fair values of the plan assets by asset class at December 31 are as follows: Target Allocations by Asset Category Fair Value Total Level 2 Level 3 Plan Assets: 2020 2019 2020 2019 2020 2019 Equity funds 68% $ 38.9 $ 36.0 $ 38.9 $ 36.0 $ — $ — Fixed income funds 26% 13.2 12.8 13.2 12.8 — — Other investments 6% 1.8 0.3 — — 1.8 0.3 Total $ 53.9 $ 49.1 $ 52.1 $ 48.8 $ 1.8 $ 0.3 |
Rollforward of Unobservable Inputs | The following table represents changes in the fair value of plan assets categorized as Level 3 from the preceding table: Balance at December 31, 2018 $ 0.2 Purchases, sales and settlements, net (3.1) Transfers, net 3.2 Balance at December 31, 2019 0.3 Purchases, sales and settlements, net (3.0) Transfers, net 4.5 Balance at December 31, 2020 $ 1.8 |
Schedule of Expected Benefit Payments | The following benefit payments are expected to be paid by the plan in each of the next five years and in the aggregate for the subsequent five years: 2021 $ 3.1 2022 3.2 2023 3.3 2024 3.3 2025 3.4 In aggregate during five years thereafter 17.2 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Valuation Assumptions | Weighted-average grant-date fair values of stock options and the assumptions used in estimating the fair values are as follows: Year Ended December 31, 2020 2019 2018 Weighted-average grant-date fair value per share $ 28.53 $ 30.66 $ 26.67 Expected term (years) 4.8 5.0 5.5 Risk-free interest rate 1.66 % 2.24 % 2.30 % Expected volatility 46.60 % 50.94 % 59.41 % |
Summary of Stock Option Activity Rollforward | The following table summarizes our stock option activity from continuing operations: December 31, 2020 Number Weighted-average Aggregate Intrinsic Value Weighted- average Remaining Contractual Term Outstanding at beginning of year 0.63 $ 46.01 Granted 0.11 68.80 Exercised (0.31) 35.66 Forfeited / Cancelled (0.07) 59.76 Outstanding at end of year 0.36 $ 57.95 $ 22.6 6.1 years Vested and expected to vest at end of year 0.36 $ 57.67 $ 9.3 6.0 years Exercisable at end of year 0.15 $ 56.51 $ 22.1 4.5 years |
Schedule of Unvested Restricted Stock and RSU Rollforward | The following table summarizes our unvested restricted stock and RSUs activity from continuing operations: December 31, 2020 Number Weighted-Average Unvested at beginning of year 0.22 $ 55.46 Granted 0.09 63.32 Forfeited (0.02) 63.89 Vested (0.10) 51.23 Unvested at end of year 0.19 $ 60.28 |
Schedule of Performance Units Unvested Shares Activity Rollforward | The following table, which is stated at a 100% earned percentage, summarizes our performance units activity from continuing operations: December 31, 2020 Number Weighted-Average Unvested at beginning of year 0.04 $ 61.71 Granted 0.04 67.50 Vested — 38.51 Forfeited (0.01) 60.91 Unvested at end of year 0.07 $ 66.76 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of Operating Lease Future Minimum Payments | The following table summarizes future minimum lease payments for non-cancelable operating leases as of December 31, 2020: 2021 $ 6.6 2022 6.2 2023 5.6 2024 5.1 2025 4.3 Thereafter (1) 3.5 Total future minimum lease payments $ 31.3 _______________ (1) As of December 31, 2020, future minimum lease payments for non-cancelable operating leases for period subsequent to 2025 relate to 7 leased facilities. |
Restructuring Activities (Table
Restructuring Activities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Summary of Severance and Other Restructuring Costs | The following table is a summary of the severance and other restructuring costs, which includes employee-related costs, facility rent and exit costs, relocation, recruiting, travel and other, for the years ended December 31, 2020, 2019 and 2018: Year Ended December 31, 2020 2019 2018 Severance: Cost of sales $ 4.6 $ 2.9 $ — Selling, general, and administrative expenses 5.5 1.4 3.1 Total severance costs 10.1 4.3 3.1 Other restructuring: Cost of sales 1.1 9.3 0.8 Selling, general, and administrative expenses 2.4 2.0 0.4 Total other restructuring costs 3.5 11.3 1.2 Total restructuring costs $ 13.6 $ 15.6 $ 4.3 |
Schedule of Restructuring Activity by Type | The following tables summarize our restructuring accrual activities: Year Ended December 31, 2020 Cryo Tank Solutions Heat Transfer Systems Specialty Products Repair, Service & Leasing Corporate Total Balance as of December 31, 2019 $ 0.5 $ 0.2 $ — $ — $ 0.2 $ 0.9 Restructuring charges 2.7 7.4 0.7 0.2 2.6 13.6 Cash payments and other (2.7) (7.4) (0.7) (0.2) (2.7) (13.7) Balance as of December 31, 2020 $ 0.5 $ 0.2 $ — $ — $ 0.1 $ 0.8 Year Ended December 31, 2019 Cryo Tank Solutions Heat Transfer Systems Specialty Products Repair, Service & Leasing Corporate Total Balance as of December 31, 2018 $ 0.7 $ — $ — $ — $ 0.1 $ 0.8 Restructuring charges 9.1 4.5 0.3 1.5 0.2 15.6 Property, plant and equipment impairment (3.9) (1.7) — — — (5.6) Cash payments and other (5.4) (2.6) (0.3) (1.5) (0.1) (9.9) Balance as of December 31, 2019 $ 0.5 $ 0.2 $ — $ — $ 0.2 $ 0.9 Year Ended December 31, 2018 Cryo Tank Solutions Heat Transfer Systems Specialty Products Repair, Service & Leasing Corporate Total Balance as of December 31, 2017 $ 0.3 $ — $ — $ — $ 1.1 $ 1.4 Restructuring charges (credits) 1.7 0.7 (0.3) (0.1) 2.3 4.3 Cash payments and other (1.3) (0.7) 0.3 0.1 (3.3) (4.9) Balance as of December 31, 2018 $ 0.7 $ — $ — $ — $ 0.1 $ 0.8 |
Quarterly Data (Unaudited) (Tab
Quarterly Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Selected quarterly data for the years ended December 31, 2020 and 2019 are as follows: Year Ended December 31, 2020 First Second Third Fourth Total Sales $ 301.9 $ 289.6 $ 273.2 $ 312.4 $ 1,177.1 Gross profit 82.3 83.3 78.6 87.9 332.1 Operating income (1) 15.8 25.8 28.1 22.5 92.2 Income from continuing operations 2.0 13.8 15.6 37.5 68.9 Income from discontinued operations 6.4 6.4 6.1 220.3 239.2 Net income attributable to Chart Industries, Inc. (1) 8.4 20.2 21.7 257.8 308.1 Basic earnings per common share attributable to Chart Industries, Inc (2) Income from continuing operations 0.06 0.39 0.44 1.06 1.95 Income from discontinued operations 0.17 0.18 0.18 6.23 6.76 Net income attributable to Chart Industries, Inc. $ 0.23 $ 0.57 $ 0.62 $ 7.29 $ 8.71 Diluted earnings per common share attributable to Chart Industries, Inc. (2) Income from continuing operations $ 0.06 $ 0.39 $ 0.43 $ 0.97 $ 1.89 Income from discontinued operations 0.17 0.18 0.17 5.72 6.56 Net income attributable to Chart Industries, Inc. $ 0.23 $ 0.57 $ 0.60 $ 6.69 $ 8.45 _______________ (1) Includes gain on sale from the Cryobiological Divestiture of $224.2, net of taxes of $25.2, for the fourth quarter of 2020. (2) Basic and diluted earnings per share are computed independently for each of the quarters presented. As such, the sum of quarterly basic and diluted earnings per share may not equal reported annual basic and diluted earnings per share. Year Ended December 31, 2019 First Second Third Fourth Total Sales $ 269.0 $ 287.1 $ 338.0 $ 321.4 $ 1,215.5 Gross profit 57.5 71.8 92.9 75.3 297.5 Operating (loss) income (1) (3.1) 16.2 23.4 15.5 52.0 (Loss) income from continuing operations (5.1) 6.3 13.7 16.5 31.4 Income (loss) from discontinued operations 6.0 8.1 5.0 (4.1) 15.0 Net income attributable to Chart Industries, Inc. $ 0.9 $ 14.4 $ 18.7 $ 12.4 $ 46.4 Basic earnings per common share attributable to Chart Industries, Inc. (Loss) income from continuing operations $ (0.16) $ 0.19 $ 0.38 $ 0.46 $ 0.93 Income (loss) from discontinued operations 0.19 0.25 0.14 (0.11) 0.44 Net income attributable to Chart Industries, Inc. (2) $ 0.03 $ 0.44 $ 0.52 $ 0.35 $ 1.37 Diluted earnings per common share attributable to Chart Industries, Inc. (Loss) income from continuing operations $ (0.15) $ 0.18 $ 0.37 $ 0.46 $ 0.89 Income (loss) from discontinued operations 0.18 0.23 0.14 (0.12) 0.43 Net income attributable to Chart Industries, Inc. (2) $ 0.03 $ 0.41 $ 0.51 $ 0.34 $ 1.32 _______________ (1) Includes transaction-related costs of $5.4 for the year ended December 31, 2019, which were mainly related to the AXC acquisition. Includes transaction-related costs of $4.3 related to integration activities for previous acquisitions for the year ended December 31, 2019. (2) Basic and diluted earnings per share are computed independently for each of the quarters presented. As such, the sum of quarterly basic and diluted earnings per share may not equal reported annual basic and diluted earnings per share. |
Nature of Operations and Prin_2
Nature of Operations and Principles of Consolidation (Details) | Dec. 31, 2020location |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of locations (location) | 25 |
Significant Accounting Polici_3
Significant Accounting Policies (Details) $ / shares in Units, shares in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2020USD ($)plan | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($)plan | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Mar. 11, 2020USD ($) | Jan. 01, 2019USD ($) | Nov. 06, 2017USD ($) | ||
Disaggregation of Revenue | |||||||||||||||
Shares authorized for repurchase | $ 75,000,000 | ||||||||||||||
Shares repurchased during the period (shares) | shares | 760 | ||||||||||||||
Weighted average share price of shares repurchased (per share) | $ / shares | $ 25.40 | ||||||||||||||
Total purchase price | [1] | $ (19,300,000) | |||||||||||||
Shares available for repurchase | $ 55,700,000 | 55,700,000 | |||||||||||||
Sales | $ 312,400,000 | $ 273,200,000 | $ 289,600,000 | $ 301,900,000 | $ 321,400,000 | $ 338,000,000 | $ 287,100,000 | $ 269,000,000 | 1,177,100,000 | $ 1,215,500,000 | $ 1,003,900,000 | ||||
Cost of sales | 845,000,000 | 918,000,000 | 744,800,000 | ||||||||||||
Advertising costs | 2,700,000 | 4,000,000 | 3,700,000 | ||||||||||||
Research and development expense | $ 9,100,000 | 9,200,000 | 8,700,000 | ||||||||||||
Number of pension plans (plans) | plan | 2 | 2 | |||||||||||||
Right of use assets | $ 29,000,000 | 34,000,000 | $ 29,000,000 | 34,000,000 | $ 34,800,000 | ||||||||||
Operating lease liability | 28,700,000 | 34,100,000 | 28,700,000 | 34,100,000 | $ 34,800,000 | ||||||||||
Convertible Notes, due 2024 | Convertible Debt | |||||||||||||||
Disaggregation of Revenue | |||||||||||||||
Principal amount | $ 258,800,000 | $ 258,800,000 | 258,800,000 | 258,800,000 | $ 258,800,000 | ||||||||||
Shipping | |||||||||||||||
Disaggregation of Revenue | |||||||||||||||
Sales | 10,600,000 | 11,300,000 | 10,600,000 | ||||||||||||
Cost of sales | $ 15,000,000 | $ 15,800,000 | $ 15,200,000 | ||||||||||||
Minimum | |||||||||||||||
Disaggregation of Revenue | |||||||||||||||
Finite lived intangible asset useful life | 2 years | ||||||||||||||
Maximum | |||||||||||||||
Disaggregation of Revenue | |||||||||||||||
Finite lived intangible asset useful life | 15 years | ||||||||||||||
[1] | Includes $19.3 in shares repurchased through our share repurchase program. Refer to Note 2, “Significant Accounting Policies,” for further information. |
Discontinued Operations - Narra
Discontinued Operations - Narratives (Details) - USD ($) $ in Millions | Oct. 01, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 20, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||||
Proceeds from sale of businesses | $ 317.5 | $ 0 | $ 133.5 | ||
Assets disposed of by sales | Cryobiological products business | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||||
Proceeds from sale of businesses | $ 317.5 | ||||
Net assets | 320 | ||||
Estimated closing date adjustments | $ 2.5 | ||||
Gain on sale of business, net of taxes | 224.2 | ||||
Tax on gain on sale of business | 25.2 | ||||
Interest expense, net | $ 7.4 | $ 10.6 | |||
Assets disposed of by sales | BioMedical | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||||
Gain on sale of business, net of taxes | 34.3 | ||||
Tax on gain on sale of business | 2.6 | ||||
Interest expense, net | $ 3.2 | ||||
Asset sale price | $ 133.5 |
Discontinued Operations - Incom
Discontinued Operations - Income for Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||||||||||
Income from discontinued operations, net of tax | $ 220.3 | $ 6.1 | $ 6.4 | $ 6.4 | $ (4.1) | $ 5 | $ 8.1 | $ 6 | $ 239.2 | $ 15 | $ 55.5 |
Disposed of by held for sale | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||||||||||
Sales | 59.9 | 83.6 | 237.5 | ||||||||
Cost of sales | 31.8 | 44.3 | 159.5 | ||||||||
Selling, general and administrative expenses | 7.8 | 10.4 | 41.9 | ||||||||
Amortization expense | 0 | 0 | 2.3 | ||||||||
Operating income | 20.3 | 28.9 | 33.8 | ||||||||
Interest expense, net | 7.4 | 10.6 | 3.2 | ||||||||
Other (income) expense, net | (0.8) | ||||||||||
Other (income) expense, net | 0.1 | 0.4 | |||||||||
Income before income taxes | 13.7 | 18.2 | 30.2 | ||||||||
Income tax (benefit) expense | (1.3) | 3.2 | 9 | ||||||||
Income from discontinued operations before gain on sale of businesses | 15 | 15 | 21.2 | ||||||||
Gain on sale of business, net of taxes | $ 224.2 | 224.2 | 0 | 34.3 | |||||||
Depreciation expense, discontinued operations | 0.7 | 1.1 | 2.7 | ||||||||
Assets disposed of by sales | Cryobiological products business | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||||||||||
Interest expense, net | 7.4 | $ 10.6 | |||||||||
Gain on sale of business, net of taxes | 224.2 | ||||||||||
Tax on gain on sale of business | $ 25.2 | ||||||||||
Assets disposed of by sales | BioMedical | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||||||||||
Interest expense, net | 3.2 | ||||||||||
Gain on sale of business, net of taxes | 34.3 | ||||||||||
Tax on gain on sale of business | $ 2.6 |
Discontinued Operations - Asset
Discontinued Operations - Assets and Liabilities of Discontinued Operations (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | ||
Current assets of discontinued operations | $ 0 | $ 21.6 |
Non-current assets of discontinued operations | 0 | 47 |
Current liabilities of discontinued operations | 0 | 5.9 |
Non-current liabilities of discontinued operations | $ 0 | 0.2 |
Held-for-sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | ||
Accounts receivable, net | 11 | |
Inventories, net | 9.4 | |
Prepaid expenses | 0.3 | |
Other current assets | 0.9 | |
Property, plant, and equipment, net | 6.8 | |
Goodwill | 33.5 | |
Identifiable intangible assets, net | 6.7 | |
Accounts payable | 4.2 | |
Customer advances and billings in excess of contract revenue | 0.1 | |
Accrued salaries, wages, and benefits | 1.5 | |
Current portion of warranty reserve | 0.1 | |
Other long-term liabilities | $ 0.2 |
Discontinued Operations - Cash
Discontinued Operations - Cash Flows Related to Discontinued Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net cash provided by (used in): | |||
Operating activities | $ 18.3 | $ 16.6 | $ (11.8) |
Investing activities | 316.7 | (0.9) | 132.3 |
Net cash provided by discontinued operations | $ 335 | $ 15.7 | $ 120.5 |
Segment and Geographic Inform_3
Segment and Geographic Information - Narratives (Details) $ in Millions | Oct. 01, 2020segment | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) |
Segment Reporting Information | ||||||||||||
Number of reportable segments (segment) | segment | 4 | 4 | 4 | |||||||||
Sales | $ 312.4 | $ 273.2 | $ 289.6 | $ 301.9 | $ 321.4 | $ 338 | $ 287.1 | $ 269 | $ 1,177.1 | $ 1,215.5 | $ 1,003.9 | |
Transaction related costs | 2.1 | |||||||||||
United States | ||||||||||||
Segment Reporting Information | ||||||||||||
Sales | 576.8 | 638 | 570.6 | |||||||||
China | ||||||||||||
Segment Reporting Information | ||||||||||||
Sales | $ 100.7 | $ 80.5 | $ 101.6 | |||||||||
Geographic Concentration Risk | Sales | United States | ||||||||||||
Segment Reporting Information | ||||||||||||
Concentration risk (percent) | 49.00% | 52.50% | 56.80% | |||||||||
Geographic Concentration Risk | Sales | China | ||||||||||||
Segment Reporting Information | ||||||||||||
Concentration risk (percent) | 8.60% | 6.60% | 10.10% | |||||||||
Customer Concentration Risk | Sales | Praxair and Linde | ||||||||||||
Segment Reporting Information | ||||||||||||
Sales | $ 119.9 | |||||||||||
Concentration risk (percent) | 11.90% |
Segment and Geographic Inform_4
Segment and Geographic Information - Segment income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information | |||||||||||
Sales | $ 312.4 | $ 273.2 | $ 289.6 | $ 301.9 | $ 321.4 | $ 338 | $ 287.1 | $ 269 | $ 1,177.1 | $ 1,215.5 | $ 1,003.9 |
Depreciation and amortization expense | 84.5 | 77.7 | 49.7 | ||||||||
Operating income (loss) | $ 22.5 | $ 28.1 | $ 25.8 | $ 15.8 | $ 15.5 | $ 23.4 | 16.2 | $ (3.1) | 92.2 | 52 | 64.5 |
Restructuring charges | 13.6 | 15.6 | 4.3 | ||||||||
Transaction related costs | 2.1 | ||||||||||
Total severance costs | 10.1 | 4.3 | 3.1 | ||||||||
Share-based compensation expense | 8.6 | 8.8 | 4.6 | ||||||||
SES & BIG | |||||||||||
Segment Reporting Information | |||||||||||
Transaction related costs | 2.6 | ||||||||||
AXC | |||||||||||
Segment Reporting Information | |||||||||||
Transaction related costs | 5.4 | ||||||||||
Prior Period Acquisitions | |||||||||||
Segment Reporting Information | |||||||||||
Integration costs | 4.3 | ||||||||||
Operating Segments | Cryo Tank Solutions | |||||||||||
Segment Reporting Information | |||||||||||
Sales | 415.8 | 409.9 | 371.4 | ||||||||
Depreciation and amortization expense | 18.5 | 19.5 | 13.9 | ||||||||
Operating income (loss) | 52.5 | 25.7 | 41.1 | ||||||||
Restructuring charges | 2.7 | 9.1 | 1.7 | ||||||||
Operating Segments | Heat Transfer Systems | |||||||||||
Segment Reporting Information | |||||||||||
Sales | 369.8 | 441.7 | 289.8 | ||||||||
Depreciation and amortization expense | 48.3 | 42 | 21.7 | ||||||||
Operating income (loss) | 11.2 | 17.7 | 8.7 | ||||||||
Restructuring charges | 7.4 | 4.5 | 0.7 | ||||||||
Operating Segments | Heat Transfer Systems | AXC | |||||||||||
Segment Reporting Information | |||||||||||
Impairment of intangible asset | 16 | ||||||||||
Operating Segments | Repair, Service & Leasing | |||||||||||
Segment Reporting Information | |||||||||||
Sales | 158.3 | 162.6 | 160.4 | ||||||||
Depreciation and amortization expense | 10.9 | 9.7 | 7.9 | ||||||||
Operating income (loss) | 30.3 | 27.9 | 21.2 | ||||||||
Restructuring charges | $ (1.6) | 0.2 | 1.5 | (0.1) | |||||||
Operating Segments | Specialty Products | |||||||||||
Segment Reporting Information | |||||||||||
Sales | 242.6 | 207.9 | 184.5 | ||||||||
Depreciation and amortization expense | 4.8 | 4.9 | 4.7 | ||||||||
Operating income (loss) | 60.7 | 48.1 | 44.8 | ||||||||
Restructuring charges | 0.7 | 0.3 | (0.3) | ||||||||
Intersegment Eliminations | |||||||||||
Segment Reporting Information | |||||||||||
Sales | (9.4) | (6.6) | (2.2) | ||||||||
Depreciation and amortization expense | 0 | 0 | 0 | ||||||||
Operating income (loss) | 0 | 0 | 0 | ||||||||
Corporate | |||||||||||
Segment Reporting Information | |||||||||||
Sales | 0 | 0 | 0 | ||||||||
Depreciation and amortization expense | 2 | 1.6 | 1.5 | ||||||||
Operating income (loss) | (62.5) | (67.4) | (51.3) | ||||||||
Restructuring charges | $ 2.6 | $ 0.2 | 2.3 | ||||||||
Corporate | Employee Severance | |||||||||||
Segment Reporting Information | |||||||||||
Total severance costs | 2.3 | ||||||||||
Share-based compensation expense | (0.9) | ||||||||||
Corporate | Employee Severance | CEO | |||||||||||
Segment Reporting Information | |||||||||||
Total severance costs | 1.4 | ||||||||||
Share-based compensation expense | (1.8) | ||||||||||
Corporate | One-time Termination Benefits | |||||||||||
Segment Reporting Information | |||||||||||
Total severance costs | 1.8 | ||||||||||
Corporate | One-time Termination Benefits | CEO | |||||||||||
Segment Reporting Information | |||||||||||
Total severance costs | $ 3.2 |
Segment and Geographic Inform_5
Segment and Geographic Information - Product Sales Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information | |||||||||||
Sales | $ 312.4 | $ 273.2 | $ 289.6 | $ 301.9 | $ 321.4 | $ 338 | $ 287.1 | $ 269 | $ 1,177.1 | $ 1,215.5 | $ 1,003.9 |
North America | |||||||||||
Segment Reporting Information | |||||||||||
Sales | 633.1 | 710.2 | 623.2 | ||||||||
Europe, Middle East, Africa and India | |||||||||||
Segment Reporting Information | |||||||||||
Sales | 361 | 348.1 | 238.4 | ||||||||
Asia Pacific | |||||||||||
Segment Reporting Information | |||||||||||
Sales | 173.8 | 148.9 | 136.1 | ||||||||
Rest of the World | |||||||||||
Segment Reporting Information | |||||||||||
Sales | 9.2 | 8.3 | 6.2 | ||||||||
Operating Segments | Cryo Tank Solutions | |||||||||||
Segment Reporting Information | |||||||||||
Sales | 415.8 | 409.9 | 371.4 | ||||||||
Operating Segments | Cryo Tank Solutions | North America | |||||||||||
Segment Reporting Information | |||||||||||
Sales | 168 | 173.6 | 164 | ||||||||
Operating Segments | Cryo Tank Solutions | Europe, Middle East, Africa and India | |||||||||||
Segment Reporting Information | |||||||||||
Sales | 165.3 | 163.8 | 120 | ||||||||
Operating Segments | Cryo Tank Solutions | Asia Pacific | |||||||||||
Segment Reporting Information | |||||||||||
Sales | 76.1 | 67.2 | 83.8 | ||||||||
Operating Segments | Cryo Tank Solutions | Rest of the World | |||||||||||
Segment Reporting Information | |||||||||||
Sales | 6.4 | 5.3 | 3.6 | ||||||||
Operating Segments | Heat Transfer Systems | |||||||||||
Segment Reporting Information | |||||||||||
Sales | 369.8 | 441.7 | 289.8 | ||||||||
Operating Segments | Heat Transfer Systems | North America | |||||||||||
Segment Reporting Information | |||||||||||
Sales | 259.4 | 311.2 | 237.1 | ||||||||
Operating Segments | Heat Transfer Systems | Europe, Middle East, Africa and India | |||||||||||
Segment Reporting Information | |||||||||||
Sales | 39.3 | 71.6 | 24.1 | ||||||||
Operating Segments | Heat Transfer Systems | Asia Pacific | |||||||||||
Segment Reporting Information | |||||||||||
Sales | 69.3 | 57.3 | 27.2 | ||||||||
Operating Segments | Heat Transfer Systems | Rest of the World | |||||||||||
Segment Reporting Information | |||||||||||
Sales | 1.8 | 1.6 | 1.4 | ||||||||
Operating Segments | Repair, Service & Leasing | |||||||||||
Segment Reporting Information | |||||||||||
Sales | 158.3 | 162.6 | 160.4 | ||||||||
Operating Segments | Repair, Service & Leasing | North America | |||||||||||
Segment Reporting Information | |||||||||||
Sales | 111.2 | 128.4 | 122.6 | ||||||||
Operating Segments | Repair, Service & Leasing | Europe, Middle East, Africa and India | |||||||||||
Segment Reporting Information | |||||||||||
Sales | 38.1 | 23.7 | 30 | ||||||||
Operating Segments | Repair, Service & Leasing | Asia Pacific | |||||||||||
Segment Reporting Information | |||||||||||
Sales | 8.4 | 9.7 | 7.1 | ||||||||
Operating Segments | Repair, Service & Leasing | Rest of the World | |||||||||||
Segment Reporting Information | |||||||||||
Sales | 0.6 | 0.8 | 0.7 | ||||||||
Operating Segments | Specialty Products | |||||||||||
Segment Reporting Information | |||||||||||
Sales | 242.6 | 207.9 | 184.5 | ||||||||
Operating Segments | Specialty Products | North America | |||||||||||
Segment Reporting Information | |||||||||||
Sales | 98.9 | 100.4 | 100.5 | ||||||||
Operating Segments | Specialty Products | Europe, Middle East, Africa and India | |||||||||||
Segment Reporting Information | |||||||||||
Sales | 121.8 | 91.2 | 65.2 | ||||||||
Operating Segments | Specialty Products | Asia Pacific | |||||||||||
Segment Reporting Information | |||||||||||
Sales | 21.4 | 15.6 | 18.3 | ||||||||
Operating Segments | Specialty Products | Rest of the World | |||||||||||
Segment Reporting Information | |||||||||||
Sales | 0.5 | 0.7 | 0.5 | ||||||||
Intersegment Eliminations | |||||||||||
Segment Reporting Information | |||||||||||
Sales | (9.4) | (6.6) | (2.2) | ||||||||
Intersegment Eliminations | North America | |||||||||||
Segment Reporting Information | |||||||||||
Sales | (4.4) | (3.4) | (1) | ||||||||
Intersegment Eliminations | Europe, Middle East, Africa and India | |||||||||||
Segment Reporting Information | |||||||||||
Sales | (3.5) | (2.2) | (0.9) | ||||||||
Intersegment Eliminations | Asia Pacific | |||||||||||
Segment Reporting Information | |||||||||||
Sales | (1.4) | (0.9) | (0.3) | ||||||||
Intersegment Eliminations | Rest of the World | |||||||||||
Segment Reporting Information | |||||||||||
Sales | $ (0.1) | $ (0.1) | $ 0 |
Segment and Geographic Inform_6
Segment and Geographic Information - Assets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Oct. 01, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Revenues from External Customers and Long-Lived Assets | |||||
Assets | $ 2,570.5 | $ 2,481.4 | |||
Goodwill | 865.9 | $ 817.6 | $ 817.6 | 811.4 | $ 487.2 |
Identifiable intangible assets, net | 493.1 | 522.4 | |||
Discontinued Operations | |||||
Revenues from External Customers and Long-Lived Assets | |||||
Assets | 0 | 68.6 | |||
Cryo Tank Solutions | |||||
Revenues from External Customers and Long-Lived Assets | |||||
Goodwill | 93.2 | 86.5 | 0 | 0 | |
Heat Transfer Systems | |||||
Revenues from External Customers and Long-Lived Assets | |||||
Goodwill | 435.2 | 432.6 | 0 | 0 | |
Specialty Products | |||||
Revenues from External Customers and Long-Lived Assets | |||||
Goodwill | 172.4 | 133.8 | 0 | 0 | |
Repair, Service & Leasing | |||||
Revenues from External Customers and Long-Lived Assets | |||||
Goodwill | 165.1 | $ 164.7 | $ 0 | 0 | |
Operating Segments | |||||
Revenues from External Customers and Long-Lived Assets | |||||
Assets | 967.3 | 919.6 | |||
Operating Segments | Cryo Tank Solutions | |||||
Revenues from External Customers and Long-Lived Assets | |||||
Assets | 399.2 | 374.4 | |||
Operating Segments | Heat Transfer Systems | |||||
Revenues from External Customers and Long-Lived Assets | |||||
Assets | 247.2 | 328.9 | |||
Operating Segments | Specialty Products | |||||
Revenues from External Customers and Long-Lived Assets | |||||
Assets | 178.3 | 109.7 | |||
Operating Segments | Repair, Service & Leasing | |||||
Revenues from External Customers and Long-Lived Assets | |||||
Assets | 142.6 | 106.6 | |||
Corporate | |||||
Revenues from External Customers and Long-Lived Assets | |||||
Assets | $ 244.2 | $ 159.4 |
Segment and Geographic Inform_7
Segment and Geographic Information - Geographic Information (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Segment Reporting Information | ||
Property, plant and equipment, net | $ 414.5 | $ 397.8 |
United States | ||
Segment Reporting Information | ||
Property, plant and equipment, net | 223.9 | 222.2 |
Foreign | ||
Segment Reporting Information | ||
Property, plant and equipment, net | 190.6 | 175.6 |
Italy | ||
Segment Reporting Information | ||
Property, plant and equipment, net | 69.9 | 56.4 |
China | ||
Segment Reporting Information | ||
Property, plant and equipment, net | 61.5 | 64.2 |
Czech Republic | ||
Segment Reporting Information | ||
Property, plant and equipment, net | 29 | 25.8 |
Germany | ||
Segment Reporting Information | ||
Property, plant and equipment, net | 16.1 | 15.5 |
India | ||
Segment Reporting Information | ||
Property, plant and equipment, net | $ 14.1 | $ 13.7 |
Revenue - Disaggregation by Tim
Revenue - Disaggregation by Timing (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue | |||||||||||
Sales to external customers | $ 312.4 | $ 273.2 | $ 289.6 | $ 301.9 | $ 321.4 | $ 338 | $ 287.1 | $ 269 | $ 1,177.1 | $ 1,215.5 | $ 1,003.9 |
Point in time | |||||||||||
Disaggregation of Revenue | |||||||||||
Sales to external customers | 697.3 | 685.1 | 677.8 | ||||||||
Over time | |||||||||||
Disaggregation of Revenue | |||||||||||
Sales to external customers | 479.8 | 530.4 | 326.1 | ||||||||
Operating Segments | Cryo Tank Solutions | |||||||||||
Disaggregation of Revenue | |||||||||||
Sales to external customers | 415.8 | 409.9 | 371.4 | ||||||||
Operating Segments | Cryo Tank Solutions | Point in time | |||||||||||
Disaggregation of Revenue | |||||||||||
Sales to external customers | 378.3 | 385.2 | 366.9 | ||||||||
Operating Segments | Cryo Tank Solutions | Over time | |||||||||||
Disaggregation of Revenue | |||||||||||
Sales to external customers | 37.5 | 24.7 | 4.5 | ||||||||
Operating Segments | Heat Transfer Systems | |||||||||||
Disaggregation of Revenue | |||||||||||
Sales to external customers | 369.8 | 441.7 | 289.8 | ||||||||
Operating Segments | Heat Transfer Systems | Point in time | |||||||||||
Disaggregation of Revenue | |||||||||||
Sales to external customers | 28.6 | 26.3 | 60.3 | ||||||||
Operating Segments | Heat Transfer Systems | Over time | |||||||||||
Disaggregation of Revenue | |||||||||||
Sales to external customers | 341.2 | 415.4 | 229.5 | ||||||||
Operating Segments | Repair, Service & Leasing | |||||||||||
Disaggregation of Revenue | |||||||||||
Sales to external customers | 158.3 | 162.6 | 160.4 | ||||||||
Operating Segments | Repair, Service & Leasing | Point in time | |||||||||||
Disaggregation of Revenue | |||||||||||
Sales to external customers | 110.3 | 117.6 | 102.5 | ||||||||
Operating Segments | Repair, Service & Leasing | Over time | |||||||||||
Disaggregation of Revenue | |||||||||||
Sales to external customers | 48 | 45 | 57.9 | ||||||||
Operating Segments | Specialty Products | |||||||||||
Disaggregation of Revenue | |||||||||||
Sales to external customers | 242.6 | 207.9 | 184.5 | ||||||||
Operating Segments | Specialty Products | Point in time | |||||||||||
Disaggregation of Revenue | |||||||||||
Sales to external customers | 184.6 | 161.2 | 150.3 | ||||||||
Operating Segments | Specialty Products | Over time | |||||||||||
Disaggregation of Revenue | |||||||||||
Sales to external customers | 58 | 46.7 | 34.2 | ||||||||
Intersegment Eliminations | |||||||||||
Disaggregation of Revenue | |||||||||||
Sales to external customers | (9.4) | (6.6) | (2.2) | ||||||||
Intersegment Eliminations | Point in time | |||||||||||
Disaggregation of Revenue | |||||||||||
Sales to external customers | (4.5) | (5.2) | (2.2) | ||||||||
Intersegment Eliminations | Over time | |||||||||||
Disaggregation of Revenue | |||||||||||
Sales to external customers | $ (4.9) | $ (1.4) | $ 0 |
Revenue - Change in Contract As
Revenue - Change in Contract Assets and Liabilities (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Contract assets | |
Accounts receivable, net of allowances, beginning | $ 191.6 |
Change in accounts receivable | 9.2 |
Accounts receivable, net of allowances, ending | 200.8 |
Unbilled contract revenue, beginning | 86.1 |
Change in unbilled contract revenue | (6.7) |
Unbilled contract revenue, ending | $ 79.4 |
Change in accounts receivable (as a percentage) | 4.80% |
Change in unbilled contract revenue (as a percentage) | (7.80%) |
Contract liabilities | |
Customer advances and billings in excess of contract revenue, beginning | $ 127.7 |
Change in customer advances and billings in excess of contract revenue | (8.8) |
Customer advances and billings in excess of contract revenue, ending | 118.9 |
Long term deferred revenue, beginning | 0.8 |
Change in long-term deferred revenue | 1.1 |
Long-term deferred revenue, ending | $ 1.9 |
Change in customer advances and billings in excess of contract revenue (as a percentage) | (6.90%) |
Change in long-term deferred revenue (as a percentage) | 137.50% |
Revenue - Narratives (Details)
Revenue - Narratives (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Contract revenue recognized | $ 101.2 | $ 113.2 |
Remaining performance obligation | $ 810 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | ||
Remaining performance obligation period (percentage) | 81.00% | |
Performance obligation period | 12 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | ||
Remaining performance obligation period (percentage) | 9.00% | |
Performance obligation period | 24 months |
Investments (Details)
Investments (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Investments, All Other Investments [Abstract] | ||
Investment in equity securities | $ 73.6 | $ 6.9 |
Equity investments | 5.3 | 6.5 |
Total investments | $ 78.9 | $ 13.4 |
Investments - Narratives (Detai
Investments - Narratives (Details) € in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2020CAD ($)shares | Dec. 31, 2020EUR (€)shares | Sep. 30, 2019USD ($) | |
Debt and Equity Securities, FV-NI | ||||||
Investment in equity securities | $ 73,600,000 | $ 6,900,000 | ||||
Equity investments | 5,300,000 | 6,500,000 | ||||
Stabilis Energy, Inc. | ||||||
Debt and Equity Securities, FV-NI | ||||||
Notes receivable | $ 7,000,000 | |||||
Investment in equity securities | 4,100,000 | 6,900,000 | ||||
Unrealized loss | $ 2,900,000 | 100,000 | ||||
Investment in joint venture | Hudson Products de Mexico S.A. de CV | ||||||
Debt and Equity Securities, FV-NI | ||||||
Equity investments, ownership interest (percent) | 50.00% | 50.00% | 50.00% | |||
Equity investments | $ 2,800,000 | 2,900,000 | ||||
Earnings (loss) from equity method investment | 300,000 | 200,000 | $ 600,000 | |||
Liberty LNG | ||||||
Debt and Equity Securities, FV-NI | ||||||
Equity investments, ownership interest (percent) | 25.00% | |||||
Equity investments | 2,100,000 | 3,300,000 | ||||
Earnings (loss) from equity method investment | (1,000,000) | $ 0 | ||||
McPhy | ||||||
Debt and Equity Securities, FV-NI | ||||||
Value of investment | $ 53,800,000 | |||||
McPhy | ||||||
Debt and Equity Securities, FV-NI | ||||||
Shares owned (shares) | shares | 1,276,595 | 1,276,595 | 1,276,595 | |||
Value of investment | $ 35,100,000 | € 30 | ||||
Ownership percentage | 4.60% | 4.60% | 4.60% | |||
Unrealized gain | $ 17,000,000 | |||||
HTEC | ||||||
Debt and Equity Securities, FV-NI | ||||||
Value of investment | $ 15,700,000 | $ 20 | ||||
Ownership percentage | 15.60% | 15.60% | 15.60% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 124.7 | $ 97.9 |
Work in process | 57.8 | 47.2 |
Finished goods | 65.9 | 64.9 |
Total inventories, net | 248.4 | 210 |
Inventory valuation reserve | $ 9.7 | $ 10.6 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment | ||
Total property, plant and equipment, gross | $ 664.3 | $ 630.4 |
Less: accumulated depreciation | (249.8) | (232.6) |
Property, plant and equipment, net | 414.5 | 397.8 |
Land and buildings | ||
Property, Plant and Equipment | ||
Total property, plant and equipment, gross | $ 346.5 | 323 |
Land and buildings | Minimum | ||
Property, Plant and Equipment | ||
Property plant and equipment, useful life | 20 years | |
Land and buildings | Maximum | ||
Property, Plant and Equipment | ||
Property plant and equipment, useful life | 35 years | |
Machinery and equipment | ||
Property, Plant and Equipment | ||
Total property, plant and equipment, gross | $ 214.4 | 198.6 |
Machinery and equipment | Minimum | ||
Property, Plant and Equipment | ||
Property plant and equipment, useful life | 3 years | |
Machinery and equipment | Maximum | ||
Property, Plant and Equipment | ||
Property plant and equipment, useful life | 12 years | |
Computer equipment, furniture and fixtures | ||
Property, Plant and Equipment | ||
Total property, plant and equipment, gross | $ 40.8 | 45.5 |
Computer equipment, furniture and fixtures | Minimum | ||
Property, Plant and Equipment | ||
Property plant and equipment, useful life | 3 years | |
Computer equipment, furniture and fixtures | Maximum | ||
Property, Plant and Equipment | ||
Property plant and equipment, useful life | 7 years | |
Right-of-use assets | ||
Property, Plant and Equipment | ||
Right-of-use assets | $ 44.4 | 42.3 |
Construction in process | ||
Property, Plant and Equipment | ||
Total property, plant and equipment, gross | $ 18.2 | $ 21 |
Property, Plant and Equipment -
Property, Plant and Equipment - Narratives (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 38.8 | $ 37.9 | $ 27.8 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill Rollforward (Details) $ in Millions | Oct. 01, 2020USD ($)segment | Sep. 30, 2020USD ($) | Jul. 01, 2019segment | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($)segment |
Goodwill | |||||||
Beginning balance, goodwill | $ 817.6 | $ 817.6 | $ 811.4 | $ 811.4 | $ 487.2 | ||
Foreign currency translation adjustments and other | 9.5 | 5.8 | |||||
Goodwill acquired during the period | 38.8 | 287.5 | |||||
Purchase price adjustments | 0.4 | 38.4 | |||||
Ending balance, goodwill | 817.6 | $ 817.6 | 865.9 | 817.6 | 865.9 | 811.4 | |
Goodwill Impaired | |||||||
Beginning Balance, accumulated goodwill impairment loss | $ 129 | 129 | 129 | 129 | 129 | ||
Ending Balance, accumulated goodwill impairment loss | 129 | 129 | 129 | $ 129 | $ 129 | ||
Number of reportable segments (segment) | segment | 4 | 4 | 4 | ||||
Adjustment | |||||||
Goodwill Impaired | |||||||
Number of reportable segments (segment) | segment | 2 | ||||||
D&S East | |||||||
Goodwill | |||||||
Beginning balance, goodwill | $ 121.5 | 121.5 | 117 | $ 117 | $ 73.6 | ||
Goodwill, transfers | (121.5) | ||||||
Foreign currency translation adjustments and other | 0 | 4.5 | (0.9) | ||||
Goodwill acquired during the period | 0 | 0 | |||||
Purchase price adjustments | 0 | 44.3 | |||||
Ending balance, goodwill | 0 | 121.5 | 0 | 121.5 | 0 | 117 | |
Goodwill Impaired | |||||||
Beginning Balance, accumulated goodwill impairment loss | 0 | 0 | 0 | 0 | 0 | ||
Ending Balance, accumulated goodwill impairment loss | 0 | 0 | 0 | 0 | 0 | ||
D&S West | |||||||
Goodwill | |||||||
Beginning balance, goodwill | 118.6 | 118.6 | 118.6 | 118.6 | 117.8 | ||
Goodwill, transfers | (118.6) | ||||||
Foreign currency translation adjustments and other | 0 | 0 | |||||
Goodwill acquired during the period | 0 | 0 | |||||
Purchase price adjustments | 0.8 | ||||||
Ending balance, goodwill | 0 | 118.6 | 0 | 118.6 | 0 | 118.6 | |
Goodwill Impaired | |||||||
Beginning Balance, accumulated goodwill impairment loss | 64.4 | 64.4 | 64.4 | 64.4 | 64.4 | ||
Goodwill Impaired Reallocation Amount | (64.4) | ||||||
Ending Balance, accumulated goodwill impairment loss | 64.4 | 0 | 64.4 | 0 | 64.4 | ||
E&C | |||||||
Goodwill | |||||||
Beginning balance, goodwill | 0 | 0 | 295.8 | ||||
Goodwill, transfers | (295.8) | ||||||
Foreign currency translation adjustments and other | 0 | ||||||
Goodwill acquired during the period | 0 | ||||||
Purchase price adjustments | 0 | ||||||
Ending balance, goodwill | 0 | ||||||
Goodwill Impaired | |||||||
Beginning Balance, accumulated goodwill impairment loss | 0 | 0 | 64.6 | ||||
Ending Balance, accumulated goodwill impairment loss | 0 | ||||||
E&C Cryogenics | |||||||
Goodwill | |||||||
Beginning balance, goodwill | 176.2 | 176.2 | 176.2 | 176.2 | 0 | ||
Goodwill, transfers | (176.2) | 183.5 | |||||
Foreign currency translation adjustments and other | 0 | (0.6) | |||||
Goodwill acquired during the period | 0 | 0 | |||||
Purchase price adjustments | (6.7) | ||||||
Ending balance, goodwill | 0 | 176.2 | 0 | 176.2 | 0 | 176.2 | |
Goodwill Impaired | |||||||
Beginning Balance, accumulated goodwill impairment loss | 40.9 | 40.9 | 40.9 | 40.9 | 0 | ||
Goodwill Impaired Reallocation Amount | (40.9) | ||||||
Ending Balance, accumulated goodwill impairment loss | 40.9 | 0 | 40.9 | 0 | 40.9 | ||
E&C FinFans | |||||||
Goodwill | |||||||
Beginning balance, goodwill | 401.3 | 401.3 | 399.6 | 399.6 | 0 | ||
Goodwill, transfers | (401.3) | 112.3 | |||||
Foreign currency translation adjustments and other | 0 | 1.3 | (0.2) | ||||
Goodwill acquired during the period | 0 | 287.5 | |||||
Purchase price adjustments | 0.4 | 0 | |||||
Ending balance, goodwill | 0 | 401.3 | 0 | 401.3 | 0 | 399.6 | |
Goodwill Impaired | |||||||
Beginning Balance, accumulated goodwill impairment loss | 23.7 | 23.7 | 23.7 | 23.7 | 0 | ||
Goodwill Impaired Reallocation Amount | (23.7) | ||||||
Ending Balance, accumulated goodwill impairment loss | 23.7 | 0 | 23.7 | 0 | 23.7 | ||
Cryo Tank Solutions | |||||||
Goodwill | |||||||
Beginning balance, goodwill | 0 | 0 | 0 | 0 | |||
Foreign currency translation adjustments and other | 6.7 | ||||||
Goodwill acquired during the period | 0 | ||||||
Ending balance, goodwill | 86.5 | 0 | 93.2 | 0 | 93.2 | 0 | |
Goodwill Impaired | |||||||
Beginning Balance, accumulated goodwill impairment loss | 0 | 0 | 0 | 0 | |||
Ending Balance, accumulated goodwill impairment loss | 0 | 23.5 | 0 | 23.5 | 0 | ||
Cryo Tank Solutions | D&S East | |||||||
Goodwill | |||||||
Goodwill, transfers | 43.3 | ||||||
Cryo Tank Solutions | D&S West | |||||||
Goodwill | |||||||
Goodwill, transfers | 43.2 | ||||||
Goodwill Impaired | |||||||
Goodwill Impaired Reallocation Amount | 23.5 | ||||||
Heat Transfer Systems | |||||||
Goodwill | |||||||
Beginning balance, goodwill | 0 | 0 | 0 | 0 | |||
Foreign currency translation adjustments and other | 2.6 | ||||||
Goodwill acquired during the period | 0 | ||||||
Ending balance, goodwill | 432.6 | 0 | 435.2 | 0 | 435.2 | 0 | |
Goodwill Impaired | |||||||
Beginning Balance, accumulated goodwill impairment loss | 0 | 0 | 0 | 0 | |||
Ending Balance, accumulated goodwill impairment loss | 0 | 49.3 | 0 | 49.3 | 0 | ||
Heat Transfer Systems | Cryo Tank Solutions | |||||||
Goodwill Impaired | |||||||
Goodwill Impaired Reallocation Amount | 31.8 | ||||||
Heat Transfer Systems | E&C Cryogenics | |||||||
Goodwill | |||||||
Goodwill, transfers | 137 | ||||||
Heat Transfer Systems | E&C FinFans | |||||||
Goodwill | |||||||
Goodwill, transfers | 295.6 | ||||||
Goodwill Impaired | |||||||
Goodwill Impaired Reallocation Amount | 17.5 | ||||||
Specialty Products | |||||||
Goodwill | |||||||
Beginning balance, goodwill | 0 | 0 | 0 | 0 | |||
Foreign currency translation adjustments and other | (0.2) | ||||||
Goodwill acquired during the period | 38.8 | ||||||
Ending balance, goodwill | 133.8 | 0 | 172.4 | 0 | 172.4 | 0 | |
Goodwill Impaired | |||||||
Beginning Balance, accumulated goodwill impairment loss | 0 | 0 | 0 | 0 | |||
Ending Balance, accumulated goodwill impairment loss | 0 | 35.8 | 0 | 35.8 | 0 | ||
Specialty Products | D&S East | |||||||
Goodwill | |||||||
Goodwill, transfers | 64.6 | ||||||
Specialty Products | D&S West | |||||||
Goodwill | |||||||
Goodwill, transfers | 63.6 | ||||||
Goodwill Impaired | |||||||
Goodwill Impaired Reallocation Amount | 34.5 | ||||||
Specialty Products | E&C Cryogenics | |||||||
Goodwill | |||||||
Goodwill, transfers | 5.6 | ||||||
Goodwill Impaired | |||||||
Goodwill Impaired Reallocation Amount | 1.3 | ||||||
Repair, Service & Leasing | |||||||
Goodwill | |||||||
Beginning balance, goodwill | 0 | 0 | 0 | 0 | |||
Foreign currency translation adjustments and other | 0.4 | (1.7) | |||||
Goodwill acquired during the period | 0 | ||||||
Ending balance, goodwill | 164.7 | 0 | 165.1 | 0 | 165.1 | 0 | |
Goodwill Impaired | |||||||
Beginning Balance, accumulated goodwill impairment loss | $ 0 | 0 | 0 | 0 | |||
Ending Balance, accumulated goodwill impairment loss | 0 | 20.4 | $ 0 | $ 20.4 | $ 0 | ||
Repair, Service & Leasing | D&S East | |||||||
Goodwill | |||||||
Goodwill, transfers | 13.6 | ||||||
Repair, Service & Leasing | D&S West | |||||||
Goodwill | |||||||
Goodwill, transfers | 11.8 | ||||||
Goodwill Impaired | |||||||
Goodwill Impaired Reallocation Amount | 6.4 | ||||||
Repair, Service & Leasing | E&C Cryogenics | |||||||
Goodwill | |||||||
Goodwill, transfers | 33.6 | ||||||
Goodwill Impaired | |||||||
Goodwill Impaired Reallocation Amount | 7.8 | ||||||
Repair, Service & Leasing | E&C FinFans | |||||||
Goodwill | |||||||
Goodwill, transfers | $ 105.7 | ||||||
Goodwill Impaired | |||||||
Goodwill Impaired Reallocation Amount | $ 6.2 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Finite-lived and Indefinite-lived Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-lived and Indefinite-lived Intangible Assets | ||
Weighted-average Estimated Useful Life | 13 years | |
Gross Carrying Amount | $ 436 | $ 504.7 |
Accumulated Amortization | (86.8) | (140.2) |
Total intangible assets | 579.9 | 662.6 |
Trademarks and trade names | ||
Finite-lived and Indefinite-lived Intangible Assets | ||
Trademarks and trade names | $ 143.9 | 157.9 |
Customer relationships | ||
Finite-lived and Indefinite-lived Intangible Assets | ||
Weighted-average Estimated Useful Life | 13 years | |
Gross Carrying Amount | $ 302.5 | 380.3 |
Accumulated Amortization | $ (59.9) | (115) |
Unpatented technology | ||
Finite-lived and Indefinite-lived Intangible Assets | ||
Weighted-average Estimated Useful Life | 13 years | |
Gross Carrying Amount | $ 110.4 | 90.1 |
Accumulated Amortization | $ (22.3) | (13) |
Patents and other | ||
Finite-lived and Indefinite-lived Intangible Assets | ||
Weighted-average Estimated Useful Life | 5 years | |
Gross Carrying Amount | $ 8.4 | 20.9 |
Accumulated Amortization | $ (1.8) | (9.8) |
Trademarks and trade names | ||
Finite-lived and Indefinite-lived Intangible Assets | ||
Weighted-average Estimated Useful Life | 14 years | |
Gross Carrying Amount | $ 3.6 | 2.4 |
Accumulated Amortization | $ (1.4) | (1.2) |
Land rights | ||
Finite-lived and Indefinite-lived Intangible Assets | ||
Weighted-average Estimated Useful Life | 50 years | |
Gross Carrying Amount | $ 11.1 | 11 |
Accumulated Amortization | $ (1.4) | $ (1.2) |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Narratives (Details) - USD ($) $ in Millions | Jul. 01, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2020 |
Finite-lived and Indefinite-lived Intangible Assets | |||||
Intangible assets amortization expense | $ 45.7 | $ 39.8 | $ 21.9 | ||
AXC | |||||
Finite-lived and Indefinite-lived Intangible Assets | |||||
Intangible assets amortization expense | 16.8 | ||||
AXC | Trademarks and trade names | |||||
Finite-lived and Indefinite-lived Intangible Assets | |||||
Impairment of intangible asset | 16 | ||||
Indefinite lived intangible asset | $ 39 | $ 55 | $ 55 | ||
Minimum | |||||
Finite-lived and Indefinite-lived Intangible Assets | |||||
Finite lived intangible asset useful life | 2 years | ||||
Minimum | AXC | |||||
Finite-lived and Indefinite-lived Intangible Assets | |||||
Finite lived intangible asset useful life | 1 year | ||||
Maximum | |||||
Finite-lived and Indefinite-lived Intangible Assets | |||||
Finite lived intangible asset useful life | 15 years | ||||
Maximum | AXC | |||||
Finite-lived and Indefinite-lived Intangible Assets | |||||
Finite lived intangible asset useful life | 14 years | ||||
Government grants | Minimum | |||||
Finite-lived and Indefinite-lived Intangible Assets | |||||
Finite lived intangible asset useful life | 10 years | ||||
Government grants | Maximum | |||||
Finite-lived and Indefinite-lived Intangible Assets | |||||
Finite lived intangible asset useful life | 50 years |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Future Amortization Expense (Details) $ in Millions | Dec. 31, 2020USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity | |
2021 | $ 36.7 |
2022 | 34.5 |
2023 | 34.4 |
2024 | 34 |
2025 | $ 33.1 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Government Grants (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Finite-lived and Indefinite-lived Intangible Assets | ||
Gross carrying amount | $ 436 | $ 504.7 |
Government grants | ||
Finite-lived and Indefinite-lived Intangible Assets | ||
Gross carrying amount | 7.8 | 7.7 |
Government grants | Current | ||
Finite-lived and Indefinite-lived Intangible Assets | ||
Gross carrying amount | 0.5 | 0.5 |
Government grants | Long-term | ||
Finite-lived and Indefinite-lived Intangible Assets | ||
Gross carrying amount | $ 7.3 | $ 7.2 |
Debt and Credit Arrangements -
Debt and Credit Arrangements - Summary of Outstanding Borrowings (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 14, 2019 | Nov. 06, 2017 |
Debt Instrument | ||||
Total debt, net of unamortized discount and debt issuance costs | $ 442,500,000 | $ 777,300,000 | ||
Less: current maturities | 220,900,000 | 16,300,000 | ||
Long-term debt | 221,600,000 | 761,000,000 | ||
Current convertible notes | 220,900,000 | 0 | ||
Convertible Notes, due 2024 | Convertible Debt | ||||
Debt Instrument | ||||
Unamortized debt issuance costs | (3,100,000) | (3,800,000) | ||
Principal amount | 258,800,000 | 258,800,000 | $ 258,800,000 | |
Unamortized discount | (34,800,000) | (42,800,000) | ||
Convertible notes due November 2024, net of unamortized discount and debt issuance costs | $ 220,900,000 | 212,200,000 | ||
Debt instrument stated interest rate (percent) | 1.00% | 1.00% | ||
Revolving Credit Facility | Credit Facilities 2024 | ||||
Debt Instrument | ||||
Unamortized debt issuance costs | $ (5,000,000) | (5,500,000) | ||
Senior secured revolving credit facility and term loan, net of debt issuance costs | 221,600,000 | 560,700,000 | ||
Revolving Credit Facility | Term long due June 2024 | ||||
Debt Instrument | ||||
Long-term debt, gross | 103,100,000 | 447,200,000 | ||
Unamortized debt issuance costs | $ (5,000,000) | (5,500,000) | ||
Debt instrument stated interest rate (percent) | 2.50% | |||
Maximum borrowing capacity | $ 450,000,000 | |||
Revolving Credit Facility | Foreign facilities | ||||
Debt Instrument | ||||
Foreign facilities | $ 0 | $ 4,400,000 | ||
Debt instrument weighted average interest rate (percent) | 1.30% | |||
Letter of credit outstanding | 47,700,000 | $ 12,600,000 | ||
Line of credit remaining borrowing amount | 77,400,000 | 23,100,000 | ||
Revolving Credit Facility | Senior secured revolving credit facility | ||||
Debt Instrument | ||||
Long-term debt, gross | 123,500,000 | 119,000,000 | ||
Unamortized debt issuance costs | $ (7,800,000) | $ (9,500,000) | ||
Maximum borrowing capacity | $ 550,000,000 | |||
Debt instrument weighted average interest rate (percent) | 2.10% | |||
Letter of credit outstanding | $ 63,300,000 | |||
Line of credit remaining borrowing amount | 363,200,000 | |||
Revolving Credit Facility Sub-limit - Letters of Credit | Senior secured revolving credit facility | ||||
Debt Instrument | ||||
Maximum borrowing capacity | 100,000,000 | |||
Revolving Credit Facility Sub-limit - Discretionary Letters of Credit | Senior secured revolving credit facility | ||||
Debt Instrument | ||||
Maximum borrowing capacity | 250,000,000 | |||
Revolving Credit Facility Sub-limit - Swingline | Senior secured revolving credit facility | ||||
Debt Instrument | ||||
Maximum borrowing capacity | $ 50,000,000 |
Debt and Credit Arrangements _2
Debt and Credit Arrangements - Scheduled Annual Maturities (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Nov. 06, 2017 | |
Long-term Debt, Fiscal Year Maturity | ||||
2024 | $ 485,400,000 | |||
Debt Instrument | ||||
Interest expense, debt | 18,100,000 | $ 17,700,000 | $ 15,900,000 | |
Convertible Notes, due 2024 | Convertible Debt | ||||
Debt Instrument | ||||
Principal amount | 258,800,000 | 258,800,000 | $ 258,800,000 | |
Interest expense, debt | $ 10,600,000 | $ 10,200,000 |
Debt and Credit Arrangements _3
Debt and Credit Arrangements - Senior Secured Revolving Credit Facility and Term Loan (Details) - Revolving Credit Facility - USD ($) | Jun. 14, 2019 | Dec. 31, 2020 | Dec. 31, 2019 |
Credit Facilities 2024 | |||
Debt Instrument | |||
Maximum percentage of capital stock guaranteed by company | 65.00% | ||
Unamortized debt issuance costs | $ 5,000,000 | $ 5,500,000 | |
Credit Facilities 2024 | LIBOR | Minimum | |||
Debt Instrument | |||
Debt instrument variable rate (percent) | 1.25% | ||
Credit Facilities 2024 | LIBOR | Maximum | |||
Debt Instrument | |||
Debt instrument variable rate (percent) | 2.25% | ||
Credit Facilities 2024 | Adjusted Base Rate | Minimum | |||
Debt Instrument | |||
Debt instrument variable rate (percent) | 0.25% | ||
Credit Facilities 2024 | Adjusted Base Rate | Maximum | |||
Debt Instrument | |||
Debt instrument variable rate (percent) | 1.25% | ||
Senior secured revolving credit facility | |||
Debt Instrument | |||
Maximum borrowing capacity | $ 550,000,000 | ||
Payments of debt issuance costs | 11,100,000 | ||
Unamortized debt issuance costs | 7,800,000 | 9,500,000 | |
Term long due June 2024 | |||
Debt Instrument | |||
Maximum borrowing capacity | $ 450,000,000 | ||
Debt issuance costs | $ 7,000,000 | 6,100,000 | |
Debt issuance cost, amortization term (term) | 5 years | ||
Unamortized debt issuance costs | $ 5,000,000 | $ 5,500,000 |
Debt and Credit Arrangements _4
Debt and Credit Arrangements - Interest Expense and Financing Cost Amortization (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Line of Credit Facility | |||
Interest expense, debt | $ 18.1 | $ 17.7 | $ 15.9 |
Financing costs amortization | 4.3 | 3 | 1.3 |
Revolving Credit Facility | |||
Line of Credit Facility | |||
Interest expense, debt | 7 | 5.3 | 11.8 |
Financing costs amortization | 3.6 | 2 | 0.6 |
Revolving Credit Facility | Interest expense, term loan due June 2024 | |||
Line of Credit Facility | |||
Interest expense, debt | 4.8 | 3.1 | 0 |
Revolving Credit Facility | Interest expense, senior secured revolving credit facilities | |||
Line of Credit Facility | |||
Interest expense, debt | $ 2.2 | $ 2.2 | $ 11.8 |
Debt and Credit Arrangements _5
Debt and Credit Arrangements - 2024 Notes (Details) $ / shares in Units, shares in Thousands | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2017USD ($)shares | Dec. 31, 2020USD ($)day$ / shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2019USD ($) | Nov. 06, 2017USD ($) | Oct. 31, 2017$ / shares | |
Debt Instrument | ||||||
Share price (usd per share) | $ / shares | $ 117.79 | |||||
Long-term debt | $ 221,600,000 | $ 761,000,000 | ||||
Convertible Debt | Convertible Notes, due 2024 | ||||||
Debt Instrument | ||||||
Debt instrument stated interest rate (percent) | 1.00% | 1.00% | ||||
Principal 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 (percentage) | 35.00% | |||||
Share price (usd per share) | $ / shares | $ 43.50 | |||||
Value of securities above principal amount of debt if converted | $ 260,200,000 | |||||
Debt instrument, threshold for 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% | |||||
Trigger price (usd per share) | $ / shares | $ 76.3425 | |||||
Debt instrument effective interest rate | 4.80% | |||||
Non cash payment for derivative instrument | $ 59,500,000 | |||||
Number of shares underlying warrant (shares) | shares | 4,410 | 4,410 | ||||
Proceeds from issuance 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 | $ 71.775 | ||||
Convertible Debt | Convertible Notes, due 2024 | Liability Component | ||||||
Debt Instrument | ||||||
Principal amount | $ 200,100,000 | |||||
Long-term debt | $ 220,900,000 | |||||
Debt issuance costs | 5,300,000 | |||||
Convertible Debt | Convertible Notes, due 2024 | Equity Component | ||||||
Debt Instrument | ||||||
Principal amount | 58,700,000 | |||||
Debt issuance costs | $ 1,500,000 |
Debt and Credit Arrangements _6
Debt and Credit Arrangements - Notes Interest Accretion Schedule (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Nov. 06, 2017 | |
Debt Instrument | ||||
Interest accretion of convertible notes discount | $ 8 | $ 7.6 | $ 9.1 | |
Total interest expense | 18.1 | 17.7 | 15.9 | |
Financing costs amortization | 4.3 | 3 | $ 1.3 | |
Convertible Debt | Convertible Notes, due 2024 | ||||
Debt Instrument | ||||
Interest accretion of convertible notes discount | 8 | 7.6 | ||
Interest expense excluding amortization | 2.6 | 2.6 | ||
Total interest expense | 10.6 | 10.2 | ||
Financing costs amortization | $ 0.7 | $ 0.7 | ||
Debt instrument stated interest rate (percent) | 1.00% | 1.00% |
Debt and Credit Arrangements _7
Debt and Credit Arrangements - Foreign Facilities (Details) - Foreign facilities - Revolving Credit Facility - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument | ||
Foreign facilities | $ 0 | $ 4.4 |
Line of credit remaining borrowing amount | 77.4 | 23.1 |
Letter of credit outstanding | $ 47.7 | $ 12.6 |
Debt instrument weighted average interest rate (percent) | 1.30% |
Debt and Credit Arrangements _8
Debt and Credit Arrangements - Letters of Credit (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
Restricted cash and restricted cash equivalents | $ 1 | $ 1 |
Restricted cash and cash equivalents, current | $ 1 | |
Restricted cash and cash equivalents, non-current | $ 1 |
Debt and Credit Arrangements _9
Debt and Credit Arrangements - Fair Value Disclosures about Debt (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Convertible Debt | Convertible Notes, due 2024 | ||
Debt Instrument | ||
Debt instrument percentage over par value | 210.00% | 132.00% |
Financial Instruments and Der_2
Financial Instruments and Derivative Financial Instruments - Concentration of Credit Risks (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financial Instruments and Derivative Financial Instruments | |||||||||||
Sales | $ 312.4 | $ 273.2 | $ 289.6 | $ 301.9 | $ 321.4 | $ 338 | $ 287.1 | $ 269 | $ 1,177.1 | $ 1,215.5 | $ 1,003.9 |
Gain (loss) on foreign currency hedge | $ 1.3 | $ 0.7 | $ (0.8) | ||||||||
Geographic Concentration Risk | Sales | Foreign | |||||||||||
Financial Instruments and Derivative Financial Instruments | |||||||||||
Concentration risk (percent) | 51.00% | 48.00% | 43.00% | ||||||||
Customer Concentration Risk | Sales | Praxair and Linde | |||||||||||
Financial Instruments and Derivative Financial Instruments | |||||||||||
Concentration risk (percent) | 11.90% | ||||||||||
Sales | $ 119.9 | ||||||||||
Customer Concentration Risk | Sales | Ten Largest Customers | |||||||||||
Financial Instruments and Derivative Financial Instruments | |||||||||||
Concentration risk (percent) | 42.00% | 34.00% | 41.00% |
Product Warranties (Details)
Product Warranties (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Movement in Standard Product Warranty Accrual | |||
Beginning balance | $ 11.5 | $ 8.7 | $ 11.6 |
Issued – warranty expense | 6.6 | 7.4 | 4.9 |
Change in estimate – warranty expense | 0 | 0 | (1.6) |
Warranty usage | (6.2) | (4.6) | (6.2) |
Ending balance | $ 11.9 | $ 11.5 | $ 8.7 |
Business Combinations - Narrati
Business Combinations - Narratives (Details) - USD ($) $ in Thousands | Dec. 23, 2020 | Nov. 03, 2020 | Oct. 13, 2020 | Jul. 01, 2019 | Sep. 30, 2019 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Oct. 01, 2020 | Sep. 30, 2020 |
Business Acquisition | |||||||||||
Goodwill | $ 865,900 | $ 811,400 | $ 487,200 | $ 817,600 | $ 817,600 | ||||||
Gain on bargain purchase | 5,000 | 0 | 0 | ||||||||
Intangible assets amortization expense | $ 45,700 | 39,800 | $ 21,900 | ||||||||
Minimum | |||||||||||
Business Acquisition | |||||||||||
Finite lived intangible asset useful life | 2 years | ||||||||||
Maximum | |||||||||||
Business Acquisition | |||||||||||
Finite lived intangible asset useful life | 15 years | ||||||||||
Sustainable Energy Solutions, Inc. | |||||||||||
Business Acquisition | |||||||||||
Payments to acquire business | $ 20,000 | ||||||||||
Potential earn-out not to exceed amount | 25,000 | ||||||||||
Net assets acquired, excluding goodwill | 13,400 | ||||||||||
Goodwill | 24,000 | ||||||||||
Identifiable intangible assets | $ 17,300 | ||||||||||
BIG | |||||||||||
Business Acquisition | |||||||||||
Payments to acquire business | $ 20,000 | ||||||||||
Potential earn-out not to exceed amount | 6,000 | ||||||||||
Net assets acquired, excluding goodwill | 8,800 | ||||||||||
Goodwill | 14,800 | ||||||||||
Identifiable intangible assets | $ 6,800 | ||||||||||
Alabama Trailers | |||||||||||
Business Acquisition | |||||||||||
Payments to acquire business | $ 10,000 | ||||||||||
Gain on bargain purchase | $ 5,000 | ||||||||||
AXC | |||||||||||
Business Acquisition | |||||||||||
Payments to acquire business | $ 599,700 | $ 592,000 | |||||||||
Goodwill | $ 287,900 | 287,500 | |||||||||
Identifiable intangible assets | 256,400 | 256,400 | |||||||||
Payment for working capital adjustments | $ 7,700 | ||||||||||
Net sales | 103,100 | ||||||||||
Operating income | 4,600 | ||||||||||
Intangible assets amortization expense | 16,800 | ||||||||||
Acquisition costs | $ 5,400 | ||||||||||
Property, plant and equipment | $ 400 | ||||||||||
AXC | Minimum | |||||||||||
Business Acquisition | |||||||||||
Finite lived intangible asset useful life | 1 year | ||||||||||
AXC | Maximum | |||||||||||
Business Acquisition | |||||||||||
Finite lived intangible asset useful life | 14 years |
Business Combinations - Net Ass
Business Combinations - Net Asset Acquired (Details) - USD ($) $ in Thousands | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Oct. 01, 2020 | Dec. 31, 2018 | |
Net assets acquired: | ||||||
Goodwill | $ 817,600 | $ 811,400 | $ 865,900 | $ 817,600 | $ 487,200 | |
Adjustments | ||||||
Goodwill | $ 400 | 38,400 | ||||
AXC | ||||||
Net assets acquired: | ||||||
Identifiable intangible assets | $ 256,400 | 256,400 | ||||
Goodwill | 287,900 | 287,500 | ||||
Property, plant and equipment | 34,200 | 34,200 | ||||
Other net assets | 53,100 | 53,100 | ||||
Liabilities | (31,900) | (31,500) | ||||
Net assets acquired | 599,700 | $ 599,700 | ||||
Adjustments | ||||||
Goodwill | 400 | |||||
Liabilities | (400) | |||||
Net assets acquired | $ 0 |
Business Combinations - Intangi
Business Combinations - Intangible Assets Acquired (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Acquired Finite-Lived Intangible Assets | |||
Weighted-average Estimated Useful Life | 13 years | ||
Customer relationships | |||
Acquired Finite-Lived Intangible Assets | |||
Weighted-average Estimated Useful Life | 13 years | ||
Unpatented technology | |||
Acquired Finite-Lived Intangible Assets | |||
Weighted-average Estimated Useful Life | 13 years | ||
AXC | |||
Acquired Finite-Lived Intangible Assets | |||
Weighted-average Estimated Useful Life | 11 years | ||
Finite lived intangible assets acquired | $ 201.4 | ||
Total identifiable intangible assets acquired | 256.4 | $ 256.4 | |
AXC | Trademarks and trade names | |||
Acquired Indefinite-lived Intangible Assets | |||
Indefinite lived assets, trademarks and trade names | $ 55 | $ 39 | $ 55 |
AXC | Customer relationships | |||
Acquired Finite-Lived Intangible Assets | |||
Weighted-average Estimated Useful Life | 14 years | ||
Finite lived intangible assets acquired | $ 139.1 | ||
AXC | Unpatented technology | |||
Acquired Finite-Lived Intangible Assets | |||
Weighted-average Estimated Useful Life | 10 years | ||
Finite lived intangible assets acquired | $ 42.1 | ||
AXC | Backlog | |||
Acquired Finite-Lived Intangible Assets | |||
Weighted-average Estimated Useful Life | 1 year | ||
Finite lived intangible assets acquired | $ 19.2 | ||
AXC | Other identifiable intangible assets | |||
Acquired Finite-Lived Intangible Assets | |||
Weighted-average Estimated Useful Life | 4 years | ||
Finite lived intangible assets acquired | $ 1 |
Business Combinations - Supplem
Business Combinations - Supplemental Pro Forma Information (Details) - AXC - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition | ||
Pro forma sales | $ 1,364.3 | $ 1,211.1 |
Pro forma net income attributable to Chart Industries, Inc. | $ 56.3 | $ 72 |
Pro forma net income attributable to Chart Industries, Inc. per common share, basic (usd per share) | $ 1.66 | $ 2.05 |
Pro forma net income attributable to Chart Industries, Inc. per common share, diluted (usd per share) | $ 1.60 | $ 1.99 |
Business Combinations - Conting
Business Combinations - Contingent Consideration (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 23, 2020 | Nov. 03, 2020 |
SES & BIG | Maximum | Scenario, Plan | |||
Business Acquisition | |||
Contingent consideration | $ 31 | ||
SES & BIG | Minimum | Scenario, Plan | |||
Business Acquisition | |||
Contingent consideration | $ 0 | ||
Sustainable Energy Solutions, Inc. | |||
Business Acquisition | |||
Contingent consideration | $ 16.9 | ||
BIG | |||
Business Acquisition | |||
Contingent consideration | $ 3.2 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) and Equity (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Increase (Decrease) in Stockholders' Equity | ||
Beginning Balance | $ 1,232.4 | $ 889 |
Ending Balance | 1,579.3 | 1,232.4 |
Accumulated other comprehensive income (loss) | ||
Increase (Decrease) in Stockholders' Equity | ||
Beginning Balance | (35.9) | (29.9) |
Other comprehensive income (loss) | 37.1 | (6.4) |
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes | 1.2 | 0.4 |
Net current-period other comprehensive income (loss), net of taxes | 38.3 | (6) |
Ending Balance | 2.4 | (35.9) |
Foreign currency translation adjustments | ||
Increase (Decrease) in Stockholders' Equity | ||
Beginning Balance | (25) | (17.5) |
Other comprehensive income (loss) | 38.8 | (7.5) |
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes | 0 | 0 |
Net current-period other comprehensive income (loss), net of taxes | 38.8 | (7.5) |
Ending Balance | 13.8 | (25) |
Pension liability adjustments, net of taxes | ||
Increase (Decrease) in Stockholders' Equity | ||
Beginning Balance | (10.9) | (12.4) |
Other comprehensive income (loss) | (1.7) | 1.1 |
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes | 1.2 | 0.4 |
Net current-period other comprehensive income (loss), net of taxes | (0.5) | 1.5 |
Ending Balance | $ (11.4) | $ (10.9) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) and Equity - Narratives (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | Jun. 14, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) | |||||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 | |||
Proceeds form issuance of shares | $ 0 | $ 295.8 | $ 0 | ||
Common Stock | |||||
Accumulated Other Comprehensive Income (Loss) | |||||
New shares issued (shares) | [1] | 4,030 | |||
IPO | Common Stock | |||||
Accumulated Other Comprehensive Income (Loss) | |||||
New shares issued (shares) | 4,025 | ||||
Common stock, par value (usd per share) | $ 0.01 | ||||
Stock price (usd per share) | $ 73.50 | ||||
Proceeds form issuance of shares | $ 295.8 | ||||
Equity issuance cost | $ 9.5 | ||||
[1] | Equity issuance costs were $9.5 during the year ended December 31, 2019. |
Earnings Per Share - Earnings P
Earnings Per Share - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net income attributable to Chart Industries, Inc. | |||||||||||
Income from continuing operations | $ 37.5 | $ 15.6 | $ 13.8 | $ 2 | $ 16.5 | $ 13.7 | $ 6.3 | $ (5.1) | $ 68.9 | $ 31.4 | $ 32.5 |
Income from discontinued operations | 239.2 | 15 | 55.5 | ||||||||
Net income attributable to Chart Industries, Inc. | $ 257.8 | $ 21.7 | $ 20.2 | $ 8.4 | $ 12.4 | $ 18.7 | $ 14.4 | $ 0.9 | $ 308.1 | $ 46.4 | $ 88 |
Earnings per common share – basic: | |||||||||||
Income from continuing operations (usd per share) | $ 1.06 | $ 0.44 | $ 0.39 | $ 0.06 | $ 0.46 | $ 0.38 | $ 0.19 | $ (0.16) | $ 1.95 | $ 0.93 | $ 1.05 |
Income from discontinued operations (usd per share) | 6.23 | 0.18 | 0.18 | 0.17 | (0.11) | 0.14 | 0.25 | 0.19 | 6.76 | 0.44 | 1.78 |
Net income attributable to Chart Industries, Inc. (usd per share) | 7.29 | 0.62 | 0.57 | 0.23 | 0.35 | 0.52 | 0.44 | 0.03 | 8.71 | 1.37 | 2.83 |
Earnings per common share – diluted: | |||||||||||
Income from continuing operations (usd per share) | 0.97 | 0.43 | 0.39 | 0.06 | 0.46 | 0.37 | 0.18 | (0.15) | 1.89 | 0.89 | 1.01 |
Income from discontinued operations (usd per share) | 5.72 | 0.17 | 0.18 | 0.17 | (0.12) | 0.14 | 0.23 | 0.18 | 6.56 | 0.43 | 1.72 |
Net income attributable to Chart Industries, Inc. (usd per share) | $ 6.69 | $ 0.60 | $ 0.57 | $ 0.23 | $ 0.34 | $ 0.51 | $ 0.41 | $ 0.03 | $ 8.45 | $ 1.32 | $ 2.73 |
Weighted average number of common shares outstanding — basic (shares) | 35,380 | 33,910 | 31,050 | ||||||||
Incremental shares issuable upon assumed conversion and exercise of share-based awards (shares) | 260 | 420 | 770 | ||||||||
Incremental shares issuable due to dilutive effect of the Convertible Notes (shares) | 530 | 820 | 380 | ||||||||
Incremental shares issuable due to dilutive effect of warrants (shares) | 280 | 20 | 0 | ||||||||
Weighted average number of common shares outstanding — diluted (shares) | 36,450 | 35,170 | 32,200 |
Earnings Per Share - Antidiluti
Earnings Per Share - Antidilutive Securities (Details) - $ / shares shares in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Oct. 31, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Total anti-dilutive securities | 4,980 | 970 | 5,780 | |
Convertible Debt | Convertible Notes, due 2024 | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Debt instrument, conversion price (usd per share) | $ 58.725 | |||
Convertible Debt | Convertible Notes, due 2024 | Maximum | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Debt instrument, conversion price (usd per share) | $ 71.775 | $ 71.775 | ||
Share-based awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Total anti-dilutive securities | 270 | 150 | 220 | |
Convertible note hedge and capped call transactions | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Total anti-dilutive securities | 300 | 820 | 380 | |
Warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Total anti-dilutive securities | 4,410 | 0 | 5,180 |
Income Taxes - Income From Cont
Income Taxes - Income From Continuing Operations Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 48 | $ 24.4 | $ 8.2 |
Foreign | 37.2 | 10.2 | 33.5 |
Income from continuing operations before income taxes | $ 85.2 | $ 34.6 | $ 41.7 |
Income Taxes - Significant Comp
Income Taxes - Significant Components (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current: | |||
Federal | $ (0.2) | $ 4.9 | $ (3.2) |
State and local | 1.9 | 2.7 | (0.2) |
Foreign | 12.2 | 11.4 | 5.3 |
Total current | 13.9 | 19 | 1.9 |
Deferred: | |||
Federal | 7.5 | (2) | 3.8 |
State and local | (2.9) | (5.5) | 1.5 |
Foreign | (3.6) | (8.7) | 0 |
Total deferred | 1 | (16.2) | 5.3 |
Income tax expense (benefit), net | $ 14.9 | $ 2.8 | $ 7.2 |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Effective Tax Rate Reconciliation | |||
Income tax expense at U.S. statutory rate | $ 17.9 | $ 7.3 | $ 8.7 |
State income taxes, net of federal tax benefit | (0.9) | (2.3) | 1.2 |
Foreign income, net of credit on foreign taxes | 0 | (1.3) | 0.7 |
Effective tax rate differential of earnings outside of U.S. | 2.4 | 0 | 2.1 |
Change in valuation allowance | (4.2) | 1 | 38.4 |
Research & experimentation credits | (1) | (0.9) | (0.8) |
Foreign derived intangible income | (0.2) | (1.2) | 0 |
Net non-deductible items | 1.2 | 2.3 | 0.4 |
Change in uncertain tax positions | (0.6) | 0 | 0.2 |
Share-based compensation | (1.7) | (2.8) | (3.3) |
Capital loss carryover | 0 | 0 | (29.7) |
Tax effect of 2017 tax reform federal rate change | (0.2) | 0 | (11.3) |
Tax effect of carryforward foreign tax credits | 0 | 0 | (0.6) |
Other items | 2.2 | 0.7 | 1.2 |
Income tax expense (benefit), net | $ 14.9 | $ 2.8 | $ 7.2 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Asset and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Accruals and reserves | $ 15.7 | $ 19.4 |
Pensions | 2.6 | 2.9 |
Inventory | 3.5 | 2.3 |
Share-based compensation | 4.4 | 5.3 |
Tax credit carryforwards | 10.6 | 15.5 |
Foreign net operating loss carryforwards | 22.4 | 24.4 |
State net operating loss carryforwards | 1.9 | 0.3 |
Capital loss carryover | 0 | 29.4 |
Convertible notes | 0.7 | 0.7 |
Operating leases | 8.1 | 8.5 |
Other – net | 7.4 | 5.5 |
Total deferred tax assets before valuation allowances | 77.3 | 114.2 |
Valuation allowances | (33.9) | (68.2) |
Total deferred tax assets, net of valuation allowances | 43.4 | 46 |
Deferred tax liabilities: | ||
Property, plant and equipment | 27.8 | 22.2 |
Goodwill and intangible assets | 69.1 | 74.9 |
Other – net | 5.2 | 1 |
Total deferred tax liabilities | 102.1 | 98.1 |
Net deferred tax liabilities | (58.7) | (52.1) |
Other assets | ||
Deferred tax liabilities: | ||
Net deferred tax liabilities | (1.5) | 0 |
Long-term deferred tax liabilities | ||
Deferred tax liabilities: | ||
Net deferred tax liabilities | $ (60.2) | $ (52.1) |
Income Taxes - Narratives (Deta
Income Taxes - Narratives (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Contingency | ||||
Deferred tax asset, operating loss carryforward | $ 128.4 | |||
Deferred tax asset operating loss carryforward subject to expiration | 47.3 | |||
Deferred tax asset valuation allowances | 33.9 | $ 68.2 | ||
Tax benefit from changes in enacted taxes | $ 1.8 | $ 22.5 | ||
Income taxes paid | 12.5 | 16.8 | $ 13.2 | |
Unrecognized tax benefit that would impact tax rate if recognized | 1.3 | 1.7 | ||
Income tax penalties and interest accrued | 0.3 | $ 0.4 | ||
Possible decrease in unrecognized tax benefit in the next 12 months | 0.4 | |||
Foreign Tax Authority | ||||
Income Tax Contingency | ||||
Deferred tax asset valuation allowances | $ 23.8 |
Income Taxes - Unrecognized Inc
Income Taxes - Unrecognized Income Tax Benefits (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Unrecognized Tax Benefits | |||
Unrecognized tax benefits at beginning of the year | $ 2,400,000 | $ 2,300,000 | $ 800,000 |
(Reductions) additions for tax positions taken during the prior period | (600,000) | (100,000) | |
(Reductions) additions for tax positions taken during the prior period | 900,000 | ||
Additions for tax positions taken during the current period | 200,000 | 200,000 | 1,400,000 |
Reductions relating to settlements with taxing authorities | (100,000) | (800,000) | |
Unrecognized tax benefits at end of the year | $ 1,900,000 | $ 2,400,000 | $ 2,300,000 |
Employee Benefit Plans - Net Pe
Employee Benefit Plans - Net Pension Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | |||
Interest cost | $ 1.8 | $ 2.2 | $ 2.1 |
Expected return on plan assets | (3.3) | (2.9) | (3.3) |
Amortization of net loss | 1.2 | 1.3 | 0.9 |
Total net periodic pension (income) expense | $ (0.3) | $ 0.6 | $ (0.3) |
Employee Benefit Plans - Projec
Employee Benefit Plans - Projected Benefit Obligation and Plan Asset Fund Status (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Change in projected benefit obligation: | |||
Projected benefit obligation at beginning of year | $ 58.5 | $ 53.6 | |
Interest cost | 1.8 | 2.2 | $ 2.1 |
Assumption changes | 5.2 | 5.4 | |
Benefits paid | (2.7) | (2.5) | |
Actuarial gains | (0.3) | (0.2) | |
Projected benefit obligation at year end | 62.5 | 58.5 | 53.6 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 49.1 | 42.8 | |
Actual return | 6.4 | 8.4 | |
Employer contributions | 1.1 | 0.4 | |
Benefits paid | (2.7) | (2.5) | |
Fair value of plan assets at year end | 53.9 | 49.1 | $ 42.8 |
Funded status (Accrued pension liabilities) | (8.6) | (9.4) | |
Unrecognized actuarial loss recognized in accumulated other comprehensive income (loss) | $ 14.9 | $ 14.2 |
Employee Benefit Plans - Actuar
Employee Benefit Plans - Actuarial Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Assumptions used to determine benefit obligation at year end: | |||
Discount rate (percent) | 2.40% | 3.20% | 4.20% |
Assumptions used to determine net periodic benefit cost: | |||
Discount rate (percent) | 3.20% | 4.20% | 3.70% |
Expected long-term weighted-average rate of return on plan assets (percent) | 7.00% | 7.00% | 7.00% |
Employee Benefit Plans - Asset
Employee Benefit Plans - Asset Category and Fair Value of Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | $ 53.9 | $ 49.1 | $ 42.8 |
Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 52.1 | 48.8 | |
Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | $ 1.8 | 0.3 | $ 0.2 |
Equity funds | |||
Defined Benefit Plan Disclosure | |||
Target Allocations by Asset Category | 68.00% | ||
Fair value of plan assets | $ 38.9 | 36 | |
Equity funds | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 38.9 | 36 | |
Equity funds | Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | $ 0 | 0 | |
Fixed income funds | |||
Defined Benefit Plan Disclosure | |||
Target Allocations by Asset Category | 26.00% | ||
Fair value of plan assets | $ 13.2 | 12.8 | |
Fixed income funds | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 13.2 | 12.8 | |
Fixed income funds | Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | $ 0 | 0 | |
Other investments | |||
Defined Benefit Plan Disclosure | |||
Target Allocations by Asset Category | 6.00% | ||
Fair value of plan assets | $ 1.8 | 0.3 | |
Other investments | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | 0 | |
Other investments | Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | $ 1.8 | $ 0.3 |
Employee Benefit Plans - Rollfo
Employee Benefit Plans - Rollforward of Unobservable Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation | ||
Fair value of plan assets at beginning of year | $ 49.1 | $ 42.8 |
Fair value of plan assets at year end | 53.9 | 49.1 |
Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation | ||
Fair value of plan assets at beginning of year | 0.3 | 0.2 |
Purchases, sales and settlements, net | (3) | (3.1) |
Transfers, net | 4.5 | 3.2 |
Fair value of plan assets at year end | $ 1.8 | $ 0.3 |
Employee Benefit Plans - Expect
Employee Benefit Plans - Expected Future Payments (Details) $ in Millions | Dec. 31, 2020USD ($) |
Expected future benefit payments | |
2021 | $ 3.1 |
2022 | 3.2 |
2023 | 3.3 |
2024 | 3.3 |
2025 | 3.4 |
In aggregate during five years thereafter | $ 17.2 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narratives (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure | |||
Accrued pension liability | $ 8.6 | $ 9.4 | |
Estimated net periodic pension expense to be amortized over the next fiscal year | 0.9 | ||
Projected benefit obligation | 62.5 | 58.5 | $ 53.6 |
Fair value of plan assets | 53.9 | 49.1 | 42.8 |
Multiemployer plan, contributions by employer | 0.5 | 0.5 | 0.4 |
Defined contribution expense | 4.9 | 8.7 | 8.2 |
Compensation expense | 0.3 | 0.3 | $ 0.4 |
Hudson | |||
Defined Benefit Plan Disclosure | |||
Accrued pension liability | 1 | 0.8 | |
Projected benefit obligation | 2.9 | 2.9 | |
Fair value of plan assets | $ 2 | $ 2 |
Share-based Compensation - Shar
Share-based Compensation - Share-based Plans Narratives (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based compensation expense | $ 8.6 | $ 8.8 | $ 4.6 |
Tax benefit related to share-based compensation | 1.6 | $ 2.7 | $ 1.3 |
Share based compensation not yet recognized | $ 8.9 | ||
Recognition period for unrecognized share based compensation | 1 year 8 months 12 days | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Shares outstanding (shares) | 360,000 | 630,000 | |
Share based compensation not yet recognized | $ 2.1 | ||
Recognition period for unrecognized share based compensation | 2 years 4 months 24 days | ||
Restricted stock and RSU's | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Shares other than options outstanding unvested (shares) | 190,000 | 220,000 | |
Share based compensation not yet recognized | $ 4.7 | ||
Recognition period for unrecognized share based compensation | 1 year 6 months | ||
Performance units | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Shares other than options outstanding unvested (shares) | 70,000 | 40,000 | |
Share based compensation not yet recognized | $ 2.1 | ||
Recognition period for unrecognized share based compensation | 1 year 8 months 12 days | ||
2017 Omnibus Equity Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Number of shares authorized (shares) | 1,700,000 | ||
2017 Omnibus Equity Plan | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Shares outstanding (shares) | 220,000 | ||
2017 Omnibus Equity Plan | Restricted stock and RSU's | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Shares other than options outstanding unvested (shares) | 200,000 | ||
2017 Omnibus Equity Plan | Performance units | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Shares other than options outstanding unvested (shares) | 60,000 | ||
2009 Omnibus Equity Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Number of shares authorized (shares) | 3,350,000 | ||
2009 Omnibus Equity Plan | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Shares outstanding (shares) | 150,000 |
Share-based Compensation - Stoc
Share-based Compensation - Stock Option Valuation Assumptions (Details) - Stock Options - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Weighted-average grant-date fair value per share (usd per share) | $ 28.53 | $ 30.66 | $ 26.67 |
Expected term (years) | 4 years 9 months 18 days | 5 years | 5 years 6 months |
Risk-free interest rate | 1.66% | 2.24% | 2.30% |
Expected volatility | 46.60% | 50.94% | 59.41% |
Share-based Compensation - St_2
Share-based Compensation - Stock Options Activity Rollforward (Details) - Stock Options $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($)$ / sharesshares | |
Number of Shares | |
Outstanding at beginning of period (shares) | shares | 630 |
Granted (shares) | shares | 110 |
Exercised (shares) | shares | (310) |
Forfeited / Cancelled (shares) | shares | (70) |
Outstanding at end of period (shares) | shares | 360 |
Vested and expected to vest (shares) | shares | 360 |
Exercisable at end of year (shares) | shares | 150 |
Weighted-average Exercise Price | |
Outstanding at beginning of period (usd per share) | $ / shares | $ 46.01 |
Granted (usd per share) | $ / shares | 68.80 |
Exercised (usd per share) | $ / shares | 35.66 |
Forfeited / Cancelled (usd per share) | $ / shares | 59.76 |
Outstanding at end of period (usd per share) | $ / shares | 57.95 |
Vested and expected to vest at end of year (usd per share) | $ / shares | 57.67 |
Exercisable at end of year (usd per share) | $ / shares | $ 56.51 |
Outstanding at end of year, aggregate intrinsic value | $ | $ 22.6 |
Vested and expected to vest at end of year, aggregate intrinsic value | $ | 9.3 |
Exercisable at end of year, aggregate intrinsic value | $ | $ 22.1 |
Outstanding at end of year, weighted average contractual term | 6 years 1 month 6 days |
Vested and expected to vest at end of year, weighted average contractual term | 6 years |
Exercisable at end of year, weighted average contractual term | 4 years 6 months |
Share-based Compensation - St_3
Share-based Compensation - Stock Options Narratives (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Recognition period for unrecognized share based compensation | 1 year 8 months 12 days | ||
Share based compensation not yet recognized | $ 8.9 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Award vesting period | 4 years | ||
Contractual term | 10 years | ||
Recognition period for unrecognized share based compensation | 2 years 4 months 24 days | ||
Share based compensation not yet recognized | $ 2.1 | ||
Intrinsic value of shares exercised | 13.2 | $ 13.1 | $ 18.8 |
Fair value of shares vested | $ 3.5 | $ 3.1 | $ 3.7 |
Share-based Compensation - Rest
Share-based Compensation - Restricted Stock and RSU's Narratives (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Recognition period for unrecognized share based compensation | 1 year 8 months 12 days | ||
Share based compensation not yet recognized | $ 8.9 | ||
Restricted stock and RSU's | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Award vesting period | 3 years | ||
Recognition period for unrecognized share based compensation | 1 year 6 months | ||
Share based compensation not yet recognized | $ 4.7 | ||
Granted (usd per share) | $ 63.32 | $ 67.64 | $ 51.99 |
Fair value of shares vested | $ 6.8 | $ 7.7 | $ 7.3 |
Share-based Compensation - Re_2
Share-based Compensation - Restricted Stock and RSU's Rollforward (Details) - Restricted stock and RSU's - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Number of Shares | |||
Unvested at beginning of year (shares) | 220 | ||
Granted (shares) | 90 | ||
Forfeited (shares) | (20) | ||
Vested (shares) | (100) | ||
Unvested at end of year (shares) | 190 | 220 | |
Weighted-Average Grant-Date Fair Value | |||
Unvested at beginning or year (usd per share) | $ 55.46 | ||
Granted (usd per share) | 63.32 | $ 67.64 | $ 51.99 |
Forfeited (usd per share) | 63.89 | ||
Vested (usd per share) | 51.23 | ||
Unvested at end or year (usd per share) | $ 60.28 | $ 55.46 |
Share-based Compensation - Perf
Share-based Compensation - Performance Units Narratives (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Recognition period for unrecognized share based compensation | 1 year 8 months 12 days | ||
Share based compensation not yet recognized | $ 8.9 | ||
Performance units | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Award vesting period | 3 years | ||
Percentage of earn-out granted | 100.00% | ||
Recognition period for unrecognized share based compensation | 1 year 8 months 12 days | ||
Share based compensation not yet recognized | $ 2.1 | ||
Granted (usd per share) | $ 67.50 | $ 69.53 | $ 49.38 |
Fair value of shares vested | $ 0.3 | $ 1.1 | $ 0.1 |
Performance units | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Percentage of earn-out granted | 0.00% | ||
Performance units | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Percentage of earn-out granted | 200.00% |
Share-based Compensation - Pe_2
Share-based Compensation - Performance Units Rollforward (Details) - Performance units - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Number of Shares | |||
Unvested at beginning of year (shares) | 40 | ||
Granted (shares) | 40 | ||
Vested (shares) | 0 | ||
Forfeited (shares) | (10) | ||
Unvested at end of year (shares) | 70 | 40 | |
Weighted-Average Grant-Date Fair Value | |||
Unvested at beginning or year (usd per share) | $ 61.71 | ||
Granted (usd per share) | 67.50 | $ 69.53 | $ 49.38 |
Vested (usd per share) | 38.51 | ||
Forfeited (usd per share) | 60.91 | ||
Unvested at end or year (usd per share) | $ 66.76 | $ 61.71 |
Share-based Compensation - Dire
Share-based Compensation - Directors' Stock Grants (Details) - Nonemployee - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Granted (shares) | 10 | 10 | 10 |
Nonemployee directors stock awards, Amount recognized in equity, fair value | $ 1.3 | $ 0.6 | $ 0.7 |
Leases - Narratives (Details)
Leases - Narratives (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020USD ($)facility | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jan. 01, 2019USD ($) | |
Leases [Abstract] | ||||
Right of use assets | $ 29 | $ 34 | $ 34.8 | |
Operating lease liability | 28.7 | 34.1 | $ 34.8 | |
Operating lease liabilities, current | $ 5.1 | 6.3 | ||
Weighted average lease term | 5 years 9 months 18 days | |||
Operating lease weighted average discount rate (percent) | 2.30% | |||
Operating lease rent expense | $ 11.1 | $ 10.2 | ||
Operating lease rent expense | $ 7.3 | |||
Leased facilities | facility | 7 |
Leases - Future Minimum Payment
Leases - Future Minimum Payments (Details) $ in Millions | Dec. 31, 2020USD ($) |
Future minimum lease payments for non-cancelable operating leases | |
2021 | $ 6.6 |
2022 | 6.2 |
2023 | 5.6 |
2024 | 5.1 |
2025 | 4.3 |
Thereafter | 3.5 |
Total future minimum lease payments | $ 31.3 |
Commitments and Contingencies -
Commitments and Contingencies - Narratives (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Accrued environmental reserve | $ 0.3 | $ 0.6 |
Restructuring Activities - Narr
Restructuring Activities - Narratives (Details) $ in Millions | Oct. 01, 2020segment | Jun. 30, 2019USD ($) | Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Jul. 17, 2020a |
Restructuring Cost and Reserve | ||||||
Restructuring charges | $ 13.6 | $ 15.6 | $ 4.3 | |||
Number of reportable segments (segment) | segment | 4 | 4 | 4 | |||
Property, plant and equipment impairment and disposals | $ 5.6 | |||||
Facility In Beasley Texas | ||||||
Restructuring Cost and Reserve | ||||||
Area of land (acres) | a | 260 | |||||
Lease Facility in Tulsa Oklahoma | Facility Closing | ||||||
Restructuring Cost and Reserve | ||||||
Restructuring charges | $ 2.7 | |||||
Lease Facility in Tulsa Oklahoma | Scenario, Plan | Facility Closing | ||||||
Restructuring Cost and Reserve | ||||||
Restructuring charges | 9 | |||||
Operating Segments | Repair, Service & Leasing | ||||||
Restructuring Cost and Reserve | ||||||
Restructuring charges | $ (1.6) | $ 0.2 | 1.5 | $ (0.1) | ||
Property, plant and equipment impairment and disposals | $ 0 |
Restructuring Activities - Rest
Restructuring Activities - Restructuring Charges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve | |||
Total severance costs | $ 10.1 | $ 4.3 | $ 3.1 |
Total other restructuring costs | 3.5 | 11.3 | 1.2 |
Restructuring costs | 13.6 | 15.6 | 4.3 |
Cost of sales | |||
Restructuring Cost and Reserve | |||
Total severance costs | 4.6 | 2.9 | 0 |
Total other restructuring costs | 1.1 | 9.3 | 0.8 |
Selling, general, and administrative expenses | |||
Restructuring Cost and Reserve | |||
Total severance costs | 5.5 | 1.4 | 3.1 |
Total other restructuring costs | $ 2.4 | $ 2 | $ 0.4 |
Restructuring Activities - Re_2
Restructuring Activities - Restructuring Accruals (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Reserve | ||||
Restructuring Reserve Beginning | $ 0.9 | $ 0.8 | $ 1.4 | |
Restructuring charges | 13.6 | 15.6 | 4.3 | |
Property, plant and equipment impairment | (5.6) | |||
Cash payments and other | (13.7) | (9.9) | (4.9) | |
Restructuring Reserve Ending | 0.8 | 0.9 | 0.8 | |
Operating Segments | Cryo Tank Solutions | ||||
Restructuring Reserve | ||||
Restructuring Reserve Beginning | 0.5 | 0.7 | 0.3 | |
Restructuring charges | 2.7 | 9.1 | 1.7 | |
Property, plant and equipment impairment | (3.9) | |||
Cash payments and other | (2.7) | (5.4) | (1.3) | |
Restructuring Reserve Ending | 0.5 | 0.5 | 0.7 | |
Operating Segments | Heat Transfer Systems | ||||
Restructuring Reserve | ||||
Restructuring Reserve Beginning | 0.2 | 0 | 0 | |
Restructuring charges | 7.4 | 4.5 | 0.7 | |
Property, plant and equipment impairment | (1.7) | |||
Cash payments and other | (7.4) | (2.6) | (0.7) | |
Restructuring Reserve Ending | 0.2 | 0.2 | 0 | |
Operating Segments | Repair, Service & Leasing | ||||
Restructuring Reserve | ||||
Restructuring Reserve Beginning | 0 | 0 | 0 | |
Restructuring charges | $ (1.6) | 0.2 | 1.5 | (0.1) |
Property, plant and equipment impairment | 0 | |||
Cash payments and other | (0.2) | (1.5) | 0.1 | |
Restructuring Reserve Ending | 0 | 0 | 0 | |
Operating Segments | Specialty Products | ||||
Restructuring Reserve | ||||
Restructuring Reserve Beginning | 0 | 0 | 0 | |
Restructuring charges | 0.7 | 0.3 | (0.3) | |
Property, plant and equipment impairment | 0 | |||
Cash payments and other | (0.7) | (0.3) | 0.3 | |
Restructuring Reserve Ending | 0 | 0 | 0 | |
Corporate | ||||
Restructuring Reserve | ||||
Restructuring Reserve Beginning | 0.2 | 0.1 | 1.1 | |
Restructuring charges | 2.6 | 0.2 | 2.3 | |
Property, plant and equipment impairment | 0 | |||
Cash payments and other | (2.7) | (0.1) | (3.3) | |
Restructuring Reserve Ending | $ 0.1 | $ 0.2 | $ 0.1 |
Quarterly Data (Unaudited) (Det
Quarterly Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Sales | $ 312.4 | $ 273.2 | $ 289.6 | $ 301.9 | $ 321.4 | $ 338 | $ 287.1 | $ 269 | $ 1,177.1 | $ 1,215.5 | $ 1,003.9 |
Gross profit | 87.9 | 78.6 | 83.3 | 82.3 | 75.3 | 92.9 | 71.8 | 57.5 | 332.1 | 297.5 | 259.1 |
Operating (loss) income | 22.5 | 28.1 | 25.8 | 15.8 | 15.5 | 23.4 | 16.2 | (3.1) | 92.2 | 52 | 64.5 |
(Loss) income from continuing operations | 37.5 | 15.6 | 13.8 | 2 | 16.5 | 13.7 | 6.3 | (5.1) | 68.9 | 31.4 | 32.5 |
Income from discontinued operations, net of tax | 220.3 | 6.1 | 6.4 | 6.4 | (4.1) | 5 | 8.1 | 6 | 239.2 | 15 | 55.5 |
Net income attributable to Chart Industries, Inc. | $ 257.8 | $ 21.7 | $ 20.2 | $ 8.4 | $ 12.4 | $ 18.7 | $ 14.4 | $ 0.9 | $ 308.1 | $ 46.4 | $ 88 |
Basic earnings per common share attributable to Chart Industries, Inc. | |||||||||||
(Loss) income from continuing operations (usd per share) | $ 1.06 | $ 0.44 | $ 0.39 | $ 0.06 | $ 0.46 | $ 0.38 | $ 0.19 | $ (0.16) | $ 1.95 | $ 0.93 | $ 1.05 |
Income from discontinued operations (usd per share) | 6.23 | 0.18 | 0.18 | 0.17 | (0.11) | 0.14 | 0.25 | 0.19 | 6.76 | 0.44 | 1.78 |
Net income attributable to Chart Industries, Inc. (usd per share) | 7.29 | 0.62 | 0.57 | 0.23 | 0.35 | 0.52 | 0.44 | 0.03 | 8.71 | 1.37 | 2.83 |
Diluted earnings per common share attributable to Chart Industries, Inc. | |||||||||||
(Loss) income from continuing operations (usd per share) | 0.97 | 0.43 | 0.39 | 0.06 | 0.46 | 0.37 | 0.18 | (0.15) | 1.89 | 0.89 | 1.01 |
Income from discontinued operations (usd per share) | 5.72 | 0.17 | 0.18 | 0.17 | (0.12) | 0.14 | 0.23 | 0.18 | 6.56 | 0.43 | 1.72 |
Net income attributable to Chart Industries, Inc. (usd per share) | $ 6.69 | $ 0.60 | $ 0.57 | $ 0.23 | $ 0.34 | $ 0.51 | $ 0.41 | $ 0.03 | $ 8.45 | $ 1.32 | $ 2.73 |
Quarterly Data (Unaudited) - Na
Quarterly Data (Unaudited) - Narratives (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Interim Period, Costs Not Allocable | ||
Transaction related costs | $ 2.1 | |
AXC | ||
Interim Period, Costs Not Allocable | ||
Transaction related costs | $ 5.4 | |
Prior Period Acquisitions | ||
Interim Period, Costs Not Allocable | ||
Integration costs | $ 4.3 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Movement in Valuation Allowances and Reserves | |||
Deferred tax asset valuation allowances | $ 33.9 | $ 68.2 | |
Cryobiological products business | |||
Movement in Valuation Allowances and Reserves | |||
Deferred tax asset valuation allowances | 32.4 | ||
Allowance for doubtful accounts | |||
Movement in Valuation Allowances and Reserves | |||
Balance at beginning of period | 8.5 | 8.1 | $ 9.1 |
Additions - Charged to costs and expenses | 0.4 | 0.2 | (0.9) |
Charged to other accounts | 0 | 0 | 0 |
Deductions | 0 | 0 | 0 |
Translations | (0.5) | 0.2 | (0.1) |
Balance at end of period | 8.4 | 8.5 | 8.1 |
Allowance for excess and obsolete inventory | |||
Movement in Valuation Allowances and Reserves | |||
Balance at beginning of period | 10.6 | 8.9 | 7.9 |
Additions - Charged to costs and expenses | 0.4 | 10 | 8.6 |
Charged to other accounts | 0 | 0 | 0 |
Deductions | (0.5) | (8) | (7.4) |
Translations | (0.8) | (0.3) | (0.2) |
Balance at end of period | 9.7 | 10.6 | 8.9 |
Deferred tax assets valuation allowance | |||
Movement in Valuation Allowances and Reserves | |||
Balance at beginning of period | 68.2 | 65.2 | 26.8 |
Additions - Charged to costs and expenses | 0.3 | 5.4 | 38.7 |
Charged to other accounts | 0 | 5.3 | 0 |
Deductions | (36.6) | (5.9) | 0 |
Translations | 2 | (1.8) | (0.3) |
Balance at end of period | $ 33.9 | $ 68.2 | $ 65.2 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | Feb. 16, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Subsequent Event [Line Items] | ||||
Payment for acquisition of businesses, net of cash acquired | $ 51.9 | $ 603.9 | $ 225.8 | |
Cryo Technologies | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Voting percentage acquired | 100.00% | |||
Payment for acquisition of businesses, net of cash acquired | $ 55 |