falsedesktopAGCO2020-09-30000088026620000047{"tbl_sim": "https://q10k.com/tbl-sim", "search": "https://q10k.com/search"}{"q10k_tbl_0": "\t\t\tPage Numbers\nPART I. FINANCIAL INFORMATION:\t\t\t\nItem 1.\tFinancial Statements (unaudited)\t\t\n\t\tCondensed Consolidated Balance Sheets as of September 30 2020 and December 31 2019\t3\n\t\tCondensed Consolidated Statements of Operations for the Three Months Ended September 30 2020 and 2019\t4\n\t\tCondensed Consolidated Statements of Operations for the Nine Months Ended September 30 2020 and 2019\t5\n\t\tCondensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended September 30 2020 and 2019\t6\n\t\tCondensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30 2020 and 2019\t7\n\tNotes to Condensed Consolidated Financial Statements\t\t8\nItem 2.\tManagement's Discussion and Analysis of Financial Condition and Results of Operations\t\t37\nItem 3.\tQuantitative and Qualitative Disclosures about Market Risk\t\t47\nItem 4.\tControls and Procedures\t\t47\nPART II. OTHER INFORMATION:\t\t\t\nItem 1.\tLegal Proceedings\t\t48\nItem 1A.\tRisk Factors\t\t48\nItem 2.\tUnregistered Sales of Equity Securities and Use of Proceeds\t\t49\nItem 6.\tExhibits\t\t50\nSIGNATURES\t\t\t51\n", "q10k_tbl_1": "\tSeptember 30 2020\tDecember 31 2019\nASSETS\t\t\nCurrent Assets:\t\t\nCash and cash equivalents\t511.0\t432.8\nAccounts and notes receivable net\t990.1\t800.5\nInventories net\t2057.1\t2078.7\nOther current assets\t386.5\t417.1\nTotal current assets\t3944.7\t3729.1\nProperty plant and equipment net\t1413.7\t1416.3\nRight-of-use lease assets\t178.9\t187.3\nInvestment in affiliates\t411.3\t380.2\nDeferred tax assets\t69.7\t93.8\nOther assets\t186.5\t153.0\nIntangible assets net\t462.2\t501.7\nGoodwill\t1273.3\t1298.3\nTotal assets\t7940.3\t7759.7\nLIABILITIES AND STOCKHOLDERS' EQUITY\t\t\nCurrent Liabilities:\t\t\nCurrent portion of long-term debt\t86.2\t2.9\nShort-term borrowings\t47.7\t150.5\nAccounts payable\t819.9\t914.8\nAccrued expenses\t1691.9\t1654.2\nOther current liabilities\t211.8\t162.1\nTotal current liabilities\t2857.5\t2884.5\nLong-term debt less current portion and debt issuance costs\t1429.3\t1191.8\nOperating lease liabilities\t139.1\t148.6\nPension and postretirement health care benefits\t224.6\t232.1\nDeferred tax liabilities\t106.6\t107.0\nOther noncurrent liabilities\t333.3\t288.7\nTotal liabilities\t5090.4\t4852.7\nCommitments and contingencies (Note 18)\t\t\nStockholders' Equity:\t\t\nAGCO Corporation stockholders' equity:\t\t\nPreferred stock; $0.01 par value 1000000 shares authorized no shares issued or outstanding in 2020 and 2019\t0\t0\nCommon stock; $0.01 par value 150000000 shares authorized 74899318 and 75471562 shares issued and outstanding at September 30 2020 and December 31 2019 respectively\t0.8\t0.8\nAdditional paid-in capital\t24.2\t4.7\nRetained earnings\t4635.7\t4443.5\nAccumulated other comprehensive loss\t(1851.0)\t(1595.2)\nTotal AGCO Corporation stockholders' equity\t2809.7\t2853.8\nNoncontrolling interests\t40.2\t53.2\nTotal stockholders' equity\t2849.9\t2907.0\nTotal liabilities and stockholders' equity\t7940.3\t7759.7\n", "q10k_tbl_2": "\tThree Months Ended September 30\t\n\t2020\t2019\nNet sales\t2497.5\t2109.4\nCost of goods sold\t1918.8\t1659.2\nGross profit\t578.7\t450.2\nSelling general and administrative expenses\t251.3\t245.0\nOperating expenses:\t\t\nEngineering expenses\t82.0\t82.3\nAmortization of intangibles\t14.8\t14.9\nBad debt expense\t5.8\t0.8\nRestructuring expenses\t0.8\t1.3\nIncome from operations\t224.0\t105.9\nInterest expense net\t3.6\t6.4\nOther expense net\t15.3\t20.8\nIncome before income taxes and equity in net earnings of affiliates\t205.1\t78.7\nIncome tax provision\t57.2\t83.2\nIncome (loss) before equity in net earnings of affiliates\t147.9\t(4.5)\nEquity in net earnings of affiliates\t10.2\t10.8\nNet income\t158.1\t6.3\nNet (income) loss attributable to noncontrolling interests\t(0.8)\t1.3\nNet income attributable to AGCO Corporation and subsidiaries\t157.3\t7.6\nNet income per common share attributable to AGCO Corporation and subsidiaries:\t\t\nBasic\t2.10\t0.10\nDiluted\t2.09\t0.10\nCash dividends declared and paid per common share\t0.16\t0.16\nWeighted average number of common and common equivalent shares outstanding:\t\t\nBasic\t74.9\t76.1\nDiluted\t75.4\t76.7\n", "q10k_tbl_3": "\tNine Months Ended September 30\t\n\t2020\t2019\nNet sales\t6432.6\t6527.8\nCost of goods sold\t4970.7\t5057.0\nGross profit\t1461.9\t1470.8\nSelling general and administrative expenses\t718.4\t767.9\nOperating expenses:\t\t\nEngineering expenses\t242.7\t254.3\nAmortization of intangibles\t44.7\t45.6\nGoodwill impairment charge\t20.0\t0\nBad debt expense\t9.0\t2.1\nRestructuring expenses\t5.4\t3.0\nIncome from operations\t421.7\t397.9\nInterest expense net\t13.1\t15.9\nOther expense net\t37.8\t47.0\nIncome before income taxes and equity in net earnings of affiliates\t370.8\t335.0\nIncome tax provision\t117.9\t155.8\nIncome before equity in net earnings of affiliates\t252.9\t179.2\nEquity in net earnings of affiliates\t31.5\t33.2\nNet income\t284.4\t212.4\nNet loss attributable to noncontrolling interests\t7.3\t1.1\nNet income attributable to AGCO Corporation and subsidiaries\t291.7\t213.5\nNet income per common share attributable to AGCO Corporation and subsidiaries:\t\t\nBasic\t3.89\t2.79\nDiluted\t3.86\t2.77\nCash dividends declared and paid per common share\t0.48\t0.47\nWeighted average number of common and common equivalent shares outstanding:\t\t\nBasic\t75.0\t76.4\nDiluted\t75.5\t77.1\n", "q10k_tbl_4": "\tThree Months Ended September 30\t\n\t2020\t2019\nNet income\t158.1\t6.3\nOther comprehensive loss net of reclassification adjustments:\t\t\nForeign currency translation adjustments\t(30.3)\t(62.7)\nDefined benefit pension plans net of tax\t3.4\t2.8\nDeferred gains and losses on derivatives net of tax\t(1.1)\t(1.6)\nOther comprehensive loss net of reclassification adjustments\t(28.0)\t(61.5)\nComprehensive income (loss)\t130.1\t(55.2)\nComprehensive loss attributable to noncontrolling interests\t1.4\t2.0\nComprehensive income (loss) attributable to AGCO Corporation and subsidiaries\t131.5\t(53.2)\n", "q10k_tbl_5": "\tNine Months Ended September 30\t\n\t2020\t2019\nNet income\t284.4\t212.4\nOther comprehensive loss net of reclassification adjustments:\t\t\nForeign currency translation adjustments\t(275.4)\t(46.1)\nDefined benefit pension plans net of tax\t10.3\t8.8\nDeferred gains and losses on derivatives net of tax\t3.9\t(0.9)\nOther comprehensive loss net of reclassification adjustments\t(261.2)\t(38.2)\nComprehensive income\t23.2\t174.2\nComprehensive loss (income) attributable to noncontrolling interests\t12.7\t(0.4)\nComprehensive income attributable to AGCO Corporation and subsidiaries\t35.9\t173.8\n", "q10k_tbl_6": "\tNine Months Ended September 30\t\n\t2020\t2019\nCash flows from operating activities:\t\t\nNet income\t284.4\t212.4\nAdjustments to reconcile net income to net cash provided by (used in) operating activities:\t\t\nDepreciation\t154.9\t159.2\nAmortization of intangibles\t44.7\t45.6\nStock compensation expense\t26.8\t32.9\nGoodwill impairment charge\t20.0\t0\nEquity in net earnings of affiliates net of cash received\t(30.9)\t(26.3)\nDeferred income tax provision\t2.4\t43.1\nOther\t19.2\t1.9\nChanges in operating assets and liabilities:\t\t\nAccounts and notes receivable net\t(264.7)\t(85.1)\nInventories net\t(53.4)\t(503.4)\nOther current and noncurrent assets\t(39.5)\t(47.0)\nAccounts payable\t(55.6)\t(4.1)\nAccrued expenses\t22.9\t23.7\nOther current and noncurrent liabilities\t92.9\t66.9\nTotal adjustments\t(60.3)\t(292.6)\nNet cash provided by (used in) operating activities\t224.1\t(80.2)\nCash flows from investing activities:\t\t\nPurchases of property plant and equipment\t(183.1)\t(188.1)\nProceeds from sale of property plant and equipment\t0.9\t0.9\nInvestments in unconsolidated affiliates\t(4.7)\t0\nPurchase of businesses net of cash acquired\t(2.8)\t0\nNet cash used in investing activities\t(189.7)\t(187.2)\nCash flows from financing activities:\t\t\nProceeds from indebtedness\t1195.6\t1998.3\nRepayments of indebtedness\t(1027.7)\t(1600.5)\nPurchases and retirement of common stock\t(55.0)\t(100.0)\nPayment of dividends to stockholders\t(36.0)\t(35.9)\nPayment of minimum tax withholdings on stock compensation\t(16.2)\t(27.5)\nPayment of debt issuance costs\t(1.4)\t(0.5)\nInvestment by noncontrolling interests\t0.2\t1.2\nNet cash provided by financing activities\t59.5\t235.1\nEffects of exchange rate changes on cash cash equivalents and restricted cash\t(15.7)\t(11.8)\nIncrease (decrease) in cash cash equivalents and restricted cash\t78.2\t(44.1)\nCash cash equivalents and restricted cash beginning of period\t432.8\t326.1\nCash cash equivalents and restricted cash end of period\t511.0\t282.0\n", "q10k_tbl_7": "\tWrite-down of Property Plant and Equipment\tEmployee Severance\tFacility Closure Costs\tTotal\nBalance as of December 31 2019\t0\t4.8\t0\t4.8\nFirst quarter 2020 provision\t0\t0.7\t0.2\t0.9\nFirst quarter 2020 provision reversal\t0\t(0.1)\t0\t(0.1)\nFirst quarter 2020 cash activity\t0\t(1.7)\t(0.2)\t(1.9)\nForeign currency translation\t0\t(0.1)\t0\t(0.1)\nBalance as of March 31 2020\t0\t3.6\t0\t3.6\nSecond quarter 2020 provision\t1.6\t2.2\t0\t3.8\nLess: Non-cash expense\t(1.6)\t0\t0\t(1.6)\nCash expense\t0\t2.2\t0\t2.2\nSecond quarter 2020 cash activity\t0\t(0.8)\t0\t(0.8)\nForeign currency translation\t0\t(0.1)\t0\t(0.1)\nBalance as of June 30 2020\t0\t4.9\t0\t4.9\nThird quarter 2020 provision\t0\t0.9\t0\t0.9\nThird quarter 2020 cash activity\t0\t(1.1)\t0\t(1.1)\nThird quarter 2020 provision reversal\t0\t(0.1)\t0\t(0.1)\nBalance as of September 30 2020\t0\t4.6\t0\t4.6\n", "q10k_tbl_8": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nCost of goods sold\t0.5\t0.3\t0.9\t1.3\nSelling general and administrative expenses\t13.7\t7.8\t26.3\t32.0\nTotal stock compensation expense\t14.2\t8.1\t27.2\t33.3\n", "q10k_tbl_9": "Shares awarded but not earned at January 1\t932182\nShares awarded\t425440\nShares forfeited\t(65858)\nShares earned\t0\nShares awarded but not earned at September 30\t1291764\n", "q10k_tbl_10": "RSUs awarded but not vested at January 1\t396529\nRSUs awarded\t95593\nRSUs forfeited\t(36753)\nRSUs vested\t(116882)\nRSUs awarded but not vested at September 30\t338487\n", "q10k_tbl_11": "SSARs outstanding at January 1\t759675\nSSARs granted\t187100\nSSARs exercised\t(30225)\nSSARs canceled or forfeited\t(35061)\nSSARs outstanding at September 30\t881489\n", "q10k_tbl_12": "\tNorth America\tSouth America\tEurope/Middle East\tAsia/Pacific/Africa\tConsolidated\nBalance as of December 31 2019\t606.0\t112.2\t463.3\t116.8\t1298.3\nAcquisition\t7.2\t0\t0\t0\t7.2\nImpairment charge\t(20.0)\t0\t0\t0\t(20.0)\nForeign currency translation\t(0.1)\t(31.5)\t16.7\t2.7\t(12.2)\nBalance as of September 30 2020\t593.1\t80.7\t480.0\t119.5\t1273.3\n", "q10k_tbl_13": "Gross carrying amounts:\tTrademarks and Tradenames\tCustomer Relationships\tPatents and Technology\tLand Use Rights\tTotal\nBalance as of December 31 2019\t199.3\t579.0\t151.1\t8.5\t937.9\nForeign currency translation\t2.3\t(3.7)\t3.0\t0.2\t1.8\nBalance as of September 30 2020\t201.6\t575.3\t154.1\t8.7\t939.7\n", "q10k_tbl_14": "Accumulated amortization:\tTrademarks and Tradenames\tCustomer Relationships\tPatents and Technology\tLand Use Rights\tTotal\nBalance as of December 31 2019\t83.3\t347.4\t88.7\t3.1\t522.5\nAmortization expense\t7.6\t30.0\t7.0\t0.1\t44.7\nForeign currency translation\t0.5\t(4.7)\t2.1\t0.1\t(2.0)\nBalance as of September 30 2020\t91.4\t372.7\t97.8\t3.3\t565.2\n", "q10k_tbl_15": "Indefinite-lived intangible assets:\tTrademarks and Tradenames\nBalance as of December 31 2019\t86.3\nForeign currency translation\t1.4\nBalance as of September 30 2020\t87.7\n", "q10k_tbl_16": "\tSeptember 30 2020\tDecember 31 2019\nSenior term loan due 2022\t175.4\t168.1\nCredit facility expires 2023\t271.2\t0\n1.002% Senior term loan due 2025\t292.4\t280.2\nSenior term loans due between 2021 and 2028\t768.4\t736.2\nOther long-term debt\t10.9\t12.5\nDebt issuance costs\t(2.8)\t(2.3)\n\t1515.5\t1194.7\nSenior term loans due 2021\t(84.2)\t0\nCurrent portion of other long-term debt\t(2.0)\t(2.9)\nTotal long-term indebtedness less current portion\t1429.3\t1191.8\n", "q10k_tbl_17": "\tSeptember 30 2020\tDecember 31 2019\nFinished goods\t734.4\t780.1\nRepair and replacement parts\t623.7\t611.5\nWork in process\t222.4\t213.4\nRaw materials\t476.6\t473.7\nInventories net\t2057.1\t2078.7\n", "q10k_tbl_18": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nBalance at beginning of period\t409.0\t371.9\t392.8\t360.9\nAcquisition\t0.2\t0\t0.2\t0\nAccruals for warranties issued during the period\t73.2\t46.8\t187.1\t145.9\nSettlements made (in cash or in kind) during the period\t(56.5)\t(46.0)\t(144.1)\t(133.6)\nForeign currency translation\t12.5\t(13.3)\t2.4\t(13.8)\nBalance at September 30\t438.4\t359.4\t438.4\t359.4\n", "q10k_tbl_19": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nBasic net income per share:\t\t\t\t\nNet income attributable to AGCO Corporation and subsidiaries\t157.3\t7.6\t291.7\t213.5\nWeighted average number of common shares outstanding\t74.9\t76.1\t75.0\t76.4\nBasic net income per share attributable to AGCO Corporation and subsidiaries\t2.10\t0.10\t3.89\t2.79\nDiluted net income per share:\t\t\t\t\nNet income attributable to AGCO Corporation and subsidiaries\t157.3\t7.6\t291.7\t213.5\nWeighted average number of common shares outstanding\t74.9\t76.1\t75.0\t76.4\nDilutive SSARs performance share awards and RSUs\t0.5\t0.6\t0.5\t0.7\nWeighted average number of common shares and common share equivalents outstanding for purposes of computing diluted net income per share\t75.4\t76.7\t75.5\t77.1\nDiluted net income per share attributable to AGCO Corporation and subsidiaries\t2.09\t0.10\t3.86\t2.77\n", "q10k_tbl_20": "\t\tRecognized in Net Income\t\t\nThree Months Ended September 30\tGain (Loss) Recognized in Accumulated Other Comprehensive Loss\tClassification of Gain (Loss)\tGain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income\tTotal Amount of the Line Item in the Condensed Consolidated Statements of Operations Containing Hedge Gains (Losses)\n2020\t\t\t\t\nForeign currency contracts\t(0.1)\tCost of goods sold\t1.0\t1918.8\n2019\t\t\t\t\nForeign currency contracts\t0.1\tCost of goods sold\t1.7\t1659.2\n", "q10k_tbl_21": "\t\tRecognized in Net Income\t\t\nNine Months Ended September 30\tGain (Loss) Recognized in Accumulated Other Comprehensive Loss\tClassification of Gain (Loss)\tGain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income\tTotal Amount of the Line Item in the Condensed Consolidated Statements of Operations Containing Hedge Gains (Losses)\n2020\t\t\t\t\nForeign currency contracts(1)\t8.1\tCost of goods sold\t4.2\t4970.7\n2019\t\t\t\t\nForeign currency contracts\t(0.3)\tCost of goods sold\t0.6\t5057.0\n", "q10k_tbl_22": "\tBefore-Tax Amount\tIncome Tax\tAfter-Tax Amount\nAccumulated derivative net losses as of December 31 2019\t(1.5)\t(0.2)\t(1.3)\nNet changes in fair value of derivatives\t8.9\t0.8\t8.1\nNet gains reclassified from accumulated other comprehensive loss into income\t(4.4)\t(0.2)\t(4.2)\nAccumulated derivative net gains as of September 30 2020\t3.0\t0.4\t2.6\n", "q10k_tbl_23": "\tNotional Amount as of\t\n\tSeptember 30 2020\tDecember 31 2019\nCross currency swap contract\t300.0\t300.0\n", "q10k_tbl_24": "\tGain (Loss) Recognized in Accumulated Other Comprehensive Loss for the Three Months Ended\t\tGain (Loss) Recognized in Accumulated Other Comprehensive Loss for the Nine Months Ended\t\n\tSeptember 30 2020\tSeptember 30 2019\tSeptember 30 2020\tSeptember 30 2019\nCross currency swap contract\t(13.3)\t12.0\t(11.8)\t16.8\nForeign currency denominated debt\t0\t0.5\t1.7\t2.5\n", "q10k_tbl_25": "\t\tGain (Loss) Recognized in Net Income for the Three Months Ended\t\tGain Recognized in Net Income for the Nine Months Ended\t\n\tClassification of Gain (Loss)\tSeptember 30 2020\tSeptember 30 2019\tSeptember 30 2020\tSeptember 30 2019\nForeign currency contracts\tOther expense net\t(7.0)\t25.6\t16.1\t31.3\n", "q10k_tbl_26": "\tAsset Derivatives as of September 30 2020\t\tLiability Derivatives as of September 30 2020\t\n\tBalance Sheet Location\tFair Value\tBalance Sheet Location\tFair Value\nDerivative instruments designated as hedging instruments:\t\t\t\t\nForeign currency contracts\tOther current assets\t3.5\tOther current liabilities\t0.5\nCross currency swap contract\tOther noncurrent assets\t15.2\tOther noncurrent liabilities\t0\nDerivative instruments not designated as hedging instruments:\t\t\t\t\nForeign currency contracts\tOther current assets\t19.9\tOther current liabilities\t11.4\nTotal derivative instruments\t\t38.6\t\t11.9\n", "q10k_tbl_27": "\tAsset Derivatives as of December 31 2019\t\tLiability Derivatives as of December 31 2019\t\n\tBalance Sheet Location\tFair Value\tBalance Sheet Location\tFair Value\nDerivative instruments designated as hedging instruments:\t\t\t\t\nForeign currency contracts\tOther current assets\t0.6\tOther current liabilities\t1.9\nCross currency swap contract\tOther noncurrent assets\t27.0\tOther noncurrent liabilities\t0\nDerivative instruments not designated as hedging instruments:\t\t\t\t\nForeign currency contracts\tOther current assets\t11.7\tOther current liabilities\t13.1\nTotal derivative instruments\t\t39.3\t\t15.0\n", "q10k_tbl_28": "\tCommon Stock\tAdditional Paid-in Capital\tRetained Earnings\tAccumulated Other Comprehensive Loss\tNoncontrolling Interests\tTotal Stockholders' Equity\nBalance June 30 2020\t0.8\t10.1\t4490.4\t(1825.2)\t41.4\t2717.5\nStock compensation\t0\t14.1\t0\t0\t0\t14.1\nComprehensive income:\t\t\t\t\t\t\nNet income (loss)\t0\t0\t157.3\t0\t0.8\t158.1\nOther comprehensive loss net of reclassification adjustments:\t\t\t\t\t\t\nForeign currency translation adjustments\t0\t0\t0\t(28.1)\t(2.2)\t(30.3)\nDefined benefit pension plans net of tax\t0\t0\t0\t3.4\t0\t3.4\nDeferred gains and losses on derivatives net of tax\t0\t0\t0\t(1.1)\t0\t(1.1)\nPayment of dividends to stockholders\t0\t0\t(12.0)\t0\t0\t(12.0)\nChange in noncontrolling interest\t0\t0\t0\t0\t0.2\t0.2\nBalance September 30 2020\t0.8\t24.2\t4635.7\t(1851.0)\t40.2\t2849.9\n", "q10k_tbl_29": "\tCommon Stock\tAdditional Paid-in Capital\tRetained Earnings\tAccumulated Other Comprehensive Loss\tNoncontrolling Interests\tTotal Stockholders' Equity\nBalance December 31 2019\t0.8\t4.7\t4443.5\t(1595.2)\t53.2\t2907.0\nStock compensation\t0\t30.2\t(3.4)\t0\t0\t26.8\nIssuance of stock awards\t0\t(7.3)\t(8.4)\t0\t0\t(15.7)\nSSARs exercised\t0\t0\t(0.1)\t0\t0\t(0.1)\nComprehensive loss:\t\t\t\t\t\t\nNet income (loss)\t0\t0\t291.7\t0\t(7.3)\t284.4\nOther comprehensive loss net of reclassification adjustments:\t\t\t\t\t\t\nForeign currency translation adjustments\t0\t0\t0\t(270.0)\t(5.4)\t(275.4)\nDefined benefit pension plans net of tax\t0\t0\t0\t10.3\t0\t10.3\nDeferred gains and losses on derivatives net of tax\t0\t0\t0\t3.9\t0\t3.9\nPayment of dividends to stockholders\t0\t0\t(36.0)\t0\t0\t(36.0)\nPurchases and retirement of common stock\t0\t(3.4)\t(51.6)\t0\t0\t(55.0)\nChange in noncontrolling interest\t0\t0\t0\t0\t(0.3)\t(0.3)\nBalance September 30 2020\t0.8\t24.2\t4635.7\t(1851.0)\t40.2\t2849.9\n", "q10k_tbl_30": "\tCommon Stock\tAdditional Paid-in Capital\tRetained Earnings\tAccumulated Other Comprehensive Loss\tNoncontrolling Interests\tTotal Stockholders' Equity\nBalance June 30 2019\t0.8\t7.1\t4591.1\t(1534.3)\t64.0\t3128.7\nStock compensation\t0\t8.1\t0\t0\t0\t8.1\nIssuance of stock awards\t0\t0\t(0.1)\t0\t0\t(0.1)\nSSARs exercised\t0\t0\t(0.7)\t0\t0\t(0.7)\nComprehensive income:\t\t\t\t\t\t\nNet income (loss)\t0\t0\t7.6\t0\t(1.3)\t6.3\nOther comprehensive loss net of reclassification adjustments:\t\t\t\t\t\t\nForeign currency translation adjustments\t0\t0\t0\t(62.0)\t(0.7)\t(62.7)\nDefined benefit pension plans net of tax\t0\t0\t0\t2.8\t0\t2.8\nDeferred gains and losses on derivatives net of tax\t0\t0\t0\t(1.6)\t0\t(1.6)\nPayment of dividends to stockholders\t0\t0\t(12.2)\t0\t0\t(12.2)\nPurchases and retirement of common stock\t0\t(11.3)\t(18.7)\t0\t0\t(30.0)\nInvestment by noncontrolling interests\t0\t0\t0\t0\t0.2\t0.2\nBalance September 30 2019\t0.8\t3.9\t4567.0\t(1595.1)\t62.2\t3038.8\n", "q10k_tbl_31": "\tCommon Stock\tAdditional Paid-in Capital\tRetained Earnings\tAccumulated Other Comprehensive Loss\tNoncontrolling Interests\tTotal Stockholders' Equity\nBalance December 31 2018\t0.8\t10.2\t4477.3\t(1555.4)\t60.6\t2993.5\nStock compensation\t0\t32.9\t0\t0\t0\t32.9\nIssuance of stock awards\t0\t(13.2)\t(9.8)\t0\t0\t(23.0)\nSSARs exercised\t0\t(3.1)\t(1.0)\t0\t0\t(4.1)\nComprehensive income:\t\t\t\t\t\t\nNet income (loss)\t0\t0\t213.5\t0\t(1.1)\t212.4\nOther comprehensive loss net of reclassification adjustments:\t\t\t\t\t\t\nForeign currency translation adjustments\t0\t0\t0\t(47.6)\t1.5\t(46.1)\nDefined benefit pension plans net of tax\t0\t0\t0\t8.8\t0\t8.8\nDeferred gains and losses on derivatives net of tax\t0\t0\t0\t(0.9)\t0\t(0.9)\nPayment of dividends to stockholders\t0\t0\t(35.9)\t0\t0\t(35.9)\nPurchases and retirement of common stock\t0\t(22.9)\t(77.1)\t0\t0\t(100.0)\nInvestment by noncontrolling interests\t0\t0\t0\t0\t1.2\t1.2\nBalance September 30 2019\t0.8\t3.9\t4567.0\t(1595.1)\t62.2\t3038.8\n", "q10k_tbl_32": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nNet income (loss)\t0.8\t(1.3)\t(7.3)\t(1.1)\nOther comprehensive (loss) income:\t\t\t\t\nForeign currency translation adjustments\t(2.2)\t(0.7)\t(5.4)\t1.5\nTotal comprehensive (loss) income\t(1.4)\t(2.0)\t(12.7)\t0.4\n", "q10k_tbl_33": "\tDefined Benefit Pension Plans\tDeferred Net Gains (Losses) on Derivatives\tCumulative Translation Adjustment\tTotal\nAccumulated other comprehensive loss December 31 2019\t(296.4)\t(1.3)\t(1297.5)\t(1595.2)\nOther comprehensive income (loss) before reclassifications\t0\t8.1\t(270.0)\t(261.9)\nNet losses (gains) reclassified from accumulated other comprehensive loss\t10.3\t(4.2)\t0\t6.1\nOther comprehensive income (loss) net of reclassification adjustments\t10.3\t3.9\t(270.0)\t(255.8)\nAccumulated other comprehensive loss September 30 2020\t(286.1)\t2.6\t(1567.5)\t(1851.0)\n", "q10k_tbl_34": "\tAmount Reclassified from Accumulated Other Comprehensive Loss\t\tAffected Line Item within the Condensed Consolidated Statements of Operations\nDetails about Accumulated Other Comprehensive Loss Components\tThree Months Ended September 30 2020(1)\tThree Months Ended September 30 2019(1)\nDerivatives:\t\t\t\nNet gains on foreign currency contracts\t(1.2)\t(1.6)\tCost of goods sold\nReclassification before tax\t(1.2)\t(1.6)\t\n\t0.2\t(0.1)\tIncome tax benefit (provision)\nReclassification net of tax\t(1.0)\t(1.7)\t\nDefined benefit pension plans:\t\t\t\nAmortization of net actuarial losses\t3.5\t2.9\tOther expense net(2)\nAmortization of prior service cost\t0.5\t0.4\tOther expense net(2)\nReclassification before tax\t4.0\t3.3\t\n\t(0.6)\t(0.5)\tIncome tax provision\nReclassification net of tax\t3.4\t2.8\t\nNet losses reclassified from accumulated other comprehensive loss\t2.4\t1.1\t\n", "q10k_tbl_35": "\tAmount Reclassified from Accumulated Other Comprehensive Loss\t\tAffected Line Item within the Condensed Consolidated Statements of Operations\nDetails about Accumulated Other Comprehensive Loss Components\tNine Months Ended September 30 2020(1)\tNine Months Ended September 30 2019(1)\nDerivatives:\t\t\t\nNet gains on foreign currency contracts\t(4.4)\t(0.5)\tCost of goods sold\nReclassification before tax\t(4.4)\t(0.5)\t\n\t0.2\t(0.1)\tIncome tax provision\nReclassification net of tax\t(4.2)\t(0.6)\t\nDefined benefit pension plans:\t\t\t\nAmortization of net actuarial losses\t10.2\t9.0\tOther expense net(2)\nAmortization of prior service cost\t1.7\t1.3\tOther expense net(2)\nReclassification before tax\t11.9\t10.3\t\n\t(1.6)\t(1.5)\tIncome tax provision\nReclassification net of tax\t10.3\t8.8\t\nNet losses reclassified from accumulated other comprehensive loss\t6.1\t8.2\t\n", "q10k_tbl_36": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\nPension benefits\t2020\t2019\t2020\t2019\nService cost\t4.0\t3.9\t12.0\t11.7\nInterest cost\t4.1\t5.1\t12.3\t15.7\nExpected return on plan assets\t(7.1)\t(6.8)\t(21.2)\t(21.1)\nAmortization of net actuarial losses\t3.4\t2.9\t10.0\t9.0\nAmortization of prior service cost\t0.5\t0.4\t1.6\t1.2\nNet periodic pension cost\t4.9\t5.5\t14.7\t16.5\n", "q10k_tbl_37": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\nPostretirement benefits\t2020\t2019\t2020\t2019\nService cost\t0\t0.1\t0\t0.1\nInterest cost\t0.3\t0.3\t0.9\t1.0\nAmortization of net actuarial losses\t0.1\t0\t0.2\t0\nAmortization of prior service cost\t0\t0\t0.1\t0.1\nNet periodic postretirement benefit cost\t0.4\t0.4\t1.2\t1.2\n", "q10k_tbl_38": "\tBefore-Tax Amount\tIncome Tax\tAfter-Tax Amount\nAccumulated other comprehensive loss as of December 31 2019\t(393.2)\t(96.8)\t(296.4)\nAmortization of net actuarial losses\t10.2\t1.5\t8.7\nAmortization of prior service cost\t1.7\t0.1\t1.6\nAccumulated other comprehensive loss as of September 30 2020\t(381.3)\t(95.2)\t(286.1)\n", "q10k_tbl_39": "\tAs of September 30 2020\t\t\t\n\tLevel 1\tLevel 2\tLevel 3\tTotal\nDerivative assets\t0\t38.6\t0\t38.6\nDerivative liabilities\t0\t11.9\t0\t11.9\n", "q10k_tbl_40": "\tAs of December 31 2019\t\t\t\n\tLevel 1\tLevel 2\tLevel 3\tTotal\nDerivative assets\t0\t39.3\t0\t39.3\nDerivative liabilities\t0\t15.0\t0\t15.0\n", "q10k_tbl_41": "Three Months Ended September 30\tNorth America\tSouth America\tEurope/Middle East\tAsia/Pacific/Africa\tConsolidated\n2020\t\t\t\t\t\nNet sales\t582.2\t273.9\t1405.9\t235.5\t2497.5\nIncome from operations\t58.3\t16.7\t187.5\t23.8\t286.3\nDepreciation\t15.4\t6.1\t26.6\t4.5\t52.6\nCapital expenditures\t9.2\t2.9\t52.8\t0.7\t65.6\n2019\t\t\t\t\t\nNet sales\t536.2\t239.4\t1145.7\t188.1\t2109.4\nIncome (loss) from operations\t32.5\t(5.6)\t122.0\t11.5\t160.4\nDepreciation\t15.0\t8.0\t25.4\t3.7\t52.1\nCapital expenditures\t11.4\t7.7\t51.2\t2.9\t73.2\n", "q10k_tbl_42": "Nine Months Ended September 30\tNorth America\tSouth America\tEurope/Middle East\tAsia/Pacific/Africa\tConsolidated\n2020\t\t\t\t\t\nNet sales\t1689.9\t606.3\t3644.2\t492.2\t6432.6\nIncome from operations\t183.9\t13.4\t380.8\t36.5\t614.6\nDepreciation\t46.2\t19.6\t79.0\t10.1\t154.9\nCapital expenditures\t27.5\t13.3\t137.3\t5.0\t183.1\n2019\t\t\t\t\t\nNet sales\t1651.3\t581.3\t3813.5\t481.7\t6527.8\nIncome (loss) from operations\t114.5\t(21.2)\t458.5\t21.9\t573.7\nDepreciation\t46.7\t24.7\t77.8\t10.0\t159.2\nCapital expenditures\t41.3\t24.8\t116.1\t5.9\t188.1\nAssets\t\t\t\t\t\nAs of September 30 2020\t1168.2\t626.0\t2343.2\t515.4\t4652.8\nAs of December 31 2019\t1125.6\t758.0\t2187.7\t430.2\t4501.5\n", "q10k_tbl_43": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nSegment income from operations\t286.3\t160.4\t614.6\t573.7\nCorporate expenses\t(33.0)\t(30.5)\t(96.5)\t(95.2)\nAmortization of intangibles\t(14.8)\t(14.9)\t(44.7)\t(45.6)\nStock compensation expense\t(13.7)\t(7.8)\t(26.3)\t(32.0)\nGoodwill impairment charge\t0\t0\t(20.0)\t0\nRestructuring expenses\t(0.8)\t(1.3)\t(5.4)\t(3.0)\nConsolidated income from operations\t224.0\t105.9\t421.7\t397.9\n", "q10k_tbl_44": "\tSeptember 30 2020\tDecember 31 2019\nSegment assets\t4652.8\t4501.5\nCash and cash equivalents\t511.0\t432.8\nInvestments in affiliates\t411.3\t380.2\nDeferred tax assets other current and noncurrent assets\t629.7\t645.2\nIntangible assets net\t462.2\t501.7\nGoodwill\t1273.3\t1298.3\nConsolidated total assets\t7940.3\t7759.7\n", "q10k_tbl_45": "\tSeptember 30 2020\t\tDecember 31 2019\t\n\tOperating Leases(1)\tFinance Leases\tOperating Leases(1)\tFinance Leases\n2020\t12.9\t1.7\t48.3\t4.8\n2021\t46.8\t3.1\t40.8\t2.7\n2022\t37.2\t1.3\t31.5\t1.2\n2023\t28.5\t1.0\t24.1\t0.9\n2024\t19.5\t0.7\t16.7\t0.6\nThereafter\t61.8\t9.1\t61.6\t8.7\nTotal lease payments\t206.7\t16.9\t223.0\t18.9\nLess: imputed interest(2)\t(23.4)\t(2.1)\t(32.1)\t(2.4)\nPresent value of leased liabilities\t183.3\t14.8\t190.9\t16.5\n", "q10k_tbl_46": "\tThree Months Ended September 30\t\n\t2020\t2019\nBalance at beginning of period\t118.7\t88.0\nAdvance consideration received\t57.6\t45.2\nRevenue recognized during the period for extended warranty contracts maintenance services and technology services\t(11.5)\t(8.7)\nRevenue recognized during the period related to grain storage and protein production systems\t(24.6)\t(32.0)\nForeign currency translation\t4.7\t(2.2)\nBalance at September 30\t144.9\t90.3\n", "q10k_tbl_47": "\tNine Months Ended September 30\t\n\t2020\t2019\nBalance at beginning of period\t104.0\t76.8\nAdvance consideration received\t127.2\t108.9\nRevenue recognized during the period for extended warranty contracts maintenance services and technology services\t(33.6)\t(22.7)\nRevenue recognized during the period related to grain storage and protein production systems\t(53.6)\t(70.6)\nForeign currency translation\t0.9\t(2.1)\nBalance at September 30\t144.9\t90.3\n", "q10k_tbl_48": "\tNorth America\tSouth America\tEurope/Middle East\tAsia/Pacific/Africa\tConsolidated\nPrimary geographical markets:\t\t\t\t\t\nUnited States\t468.3\t0\t0\t0\t468.3\nCanada\t93.8\t0\t0\t0\t93.8\nSouth America\t0\t271.6\t0\t0\t271.6\nGermany\t0\t0\t387.0\t0\t387.0\nFrance\t0\t0\t261.8\t0\t261.8\nUnited Kingdom and Ireland\t0\t0\t131.3\t0\t131.3\nFinland and Scandinavia\t0\t0\t189.3\t0\t189.3\nOther Europe\t0\t0\t397.5\t0\t397.5\nMiddle East and Algeria\t0\t0\t39.0\t0\t39.0\nAfrica\t0\t0\t0\t15.8\t15.8\nAsia\t0\t0\t0\t109.9\t109.9\nAustralia and New Zealand\t0\t0\t0\t109.8\t109.8\nMexico Central America and Caribbean\t20.1\t2.3\t0\t0\t22.4\n\t582.2\t273.9\t1405.9\t235.5\t2497.5\nMajor products:\t\t\t\t\t\nTractors\t198.4\t154.3\t1033.5\t82.5\t1468.7\nReplacement parts\t94.8\t22.8\t249.6\t23.6\t390.8\nGrain storage and protein production systems\t152.0\t16.7\t29.3\t67.3\t265.3\nCombines application equipment and other machinery\t137.0\t80.1\t93.5\t62.1\t372.7\n\t582.2\t273.9\t1405.9\t235.5\t2497.5\n", "q10k_tbl_49": "\tNorth America(1)\tSouth America\tEurope/Middle East\tAsia/Pacific/Africa(1)\tConsolidated\nPrimary geographical markets:\t\t\t\t\t\nUnited States\t431.7\t0\t0\t0\t431.7\nCanada\t79.8\t0\t0\t0\t79.8\nSouth America\t0\t236.3\t0\t0\t236.3\nGermany\t0\t0\t255.4\t0\t255.4\nFrance\t0\t0\t237.8\t0\t237.8\nUnited Kingdom and Ireland\t0\t0\t115.3\t0\t115.3\nFinland and Scandinavia\t0\t0\t176.5\t0\t176.5\nOther Europe\t0\t0\t343.8\t0\t343.8\nMiddle East and Algeria\t0\t0\t16.9\t0\t16.9\nAfrica\t0\t0\t0\t26.7\t26.7\nAsia\t0\t0\t0\t79.4\t79.4\nAustralia and New Zealand\t0\t0\t0\t82.1\t82.1\nMexico Central America and Caribbean\t24.6\t3.1\t0\t0\t27.7\n\t536.2\t239.4\t1145.7\t188.1\t2109.4\nMajor products:\t\t\t\t\t\nTractors\t166.1\t135.2\t772.0\t70.2\t1143.5\nReplacement parts\t87.2\t22.1\t233.6\t19.7\t362.6\nGrain storage and protein production systems\t165.6\t19.0\t39.3\t58.7\t282.6\nCombines application equipment and other machinery\t117.2\t63.1\t100.8\t39.6\t320.7\n\t536.2\t239.4\t1145.7\t188.1\t2109.4\n", "q10k_tbl_50": "\tNorth America\tSouth America\tEurope/Middle East(1)\tAsia/Pacific/Africa(1)\tConsolidated\nPrimary geographical markets:\t\t\t\t\t\nUnited States\t1387.8\t0\t0\t0\t1387.8\nCanada\t238.2\t0\t0\t0\t238.2\nSouth America\t0\t600.8\t0\t0\t600.8\nGermany\t0\t0\t981.4\t0\t981.4\nFrance\t0\t0\t697.5\t0\t697.5\nUnited Kingdom and Ireland\t0\t0\t354.9\t0\t354.9\nFinland and Scandinavia\t0\t0\t466.2\t0\t466.2\nOther Europe\t0\t0\t1047.1\t0\t1047.1\nMiddle East and Algeria\t0\t0\t97.1\t0\t97.1\nAfrica\t0\t0\t0\t31.8\t31.8\nAsia\t0\t0\t0\t243.8\t243.8\nAustralia and New Zealand\t0\t0\t0\t216.6\t216.6\nMexico Central America and Caribbean\t63.9\t5.5\t0\t0\t69.4\n\t1689.9\t606.3\t3644.2\t492.2\t6432.6\nMajor products:\t\t\t\t\t\nTractors\t515.4\t331.2\t2486.0\t189.9\t3522.5\nReplacement parts\t272.8\t59.6\t707.6\t60.2\t1100.2\nGrain storage and protein production systems\t391.6\t55.5\t90.1\t144.7\t681.9\nCombines application equipment and other machinery\t510.1\t160.0\t360.4\t97.5\t1128.0\n\t1689.9\t606.3\t3644.2\t492.2\t6432.6\n", "q10k_tbl_51": "\tNorth America\tSouth America\tEurope/Middle East\tAsia/Pacific/Africa(1)\tConsolidated(1)\nPrimary geographical markets:\t\t\t\t\t\nUnited States\t1344.5\t0\t0\t0\t1344.5\nCanada\t232.9\t0\t0\t0\t232.9\nSouth America\t0\t571.3\t0\t0\t571.3\nGermany\t0\t0\t916.3\t0\t916.3\nFrance\t0\t0\t743.4\t0\t743.4\nUnited Kingdom and Ireland\t0\t0\t405.5\t0\t405.5\nFinland and Scandinavia\t0\t0\t545.1\t0\t545.1\nOther Europe\t0\t0\t1151.3\t0\t1151.3\nMiddle East and Algeria\t0\t0\t51.9\t0\t51.9\nAfrica\t0\t0\t0\t76.7\t76.7\nAsia\t0\t0\t0\t216.2\t216.2\nAustralia and New Zealand\t0\t0\t0\t188.9\t188.9\nMexico Central America and Caribbean\t73.9\t10.0\t0\t0\t83.9\n\t1651.3\t581.3\t3813.5\t481.7\t6527.8\nMajor products:\t\t\t\t\t\nTractors\t493.7\t325.8\t2595.8\t197.2\t3612.5\nReplacement parts\t247.4\t65.4\t681.9\t53.6\t1048.3\nGrain storage and protein production systems\t435.8\t56.4\t143.4\t157.0\t792.6\nCombines application equipment and other machinery\t474.4\t133.7\t392.4\t73.9\t1074.4\n\t1651.3\t581.3\t3813.5\t481.7\t6527.8\n", "q10k_tbl_52": "\tThree Months Ended September 30\t\tChange\t\tChange Due to Currency Translation\t\n\t2020\t2019\t$\t%\t$\t%\t\t\t\t\t\t\nNorth America\t582.2\t536.2\t46.0\t8.6%\t(2.6)\t(0.5)%\t\t\t\t\t\t\nSouth America\t273.9\t239.4\t34.5\t14.4%\t(81.5)\t(34.0)%\t\t\t\t\t\t\nEurope/Middle East\t1405.9\t1145.7\t260.2\t22.7%\t43.5\t3.8%\t\t\t\t\t\t\nAsia/Pacific/Africa\t235.5\t188.1\t47.4\t25.2%\t7.4\t3.9%\t\t\t\t\t\t\n\t2497.5\t2109.4\t388.1\t18.4%\t(33.2)\t(1.6)%\t\t\t\t\t\t\n", "q10k_tbl_53": "\tNine Months Ended September 30\t\tChange\t\tChange Due to Currency Translation\t\n\t2020\t2019\t$\t%\t$\t%\t\t\t\t\t\t\nNorth America\t1689.9\t1651.3\t38.6\t2.3%\t(11.9)\t(0.7)%\t\t\t\t\t\t\nSouth America\t606.3\t581.3\t25.0\t4.3%\t(152.0)\t(26.1)%\t\t\t\t\t\t\nEurope/Middle East\t3644.2\t3813.5\t(169.3)\t(4.4)%\t(31.5)\t(0.8)%\t\t\t\t\t\t\nAsia/Pacific/Africa\t492.2\t481.7\t10.5\t2.2%\t(5.1)\t(1.1)%\t\t\t\t\t\t\n\t6432.6\t6527.8\t(95.2)\t(1.5)%\t(200.5)\t(3.1)%\t\t\t\t\t\t\n", "q10k_tbl_54": "\tThree Months Ended September 30\t\t\t\n\t2020\t\t2019\t\n\t$\t% of Net Sales\t$\t% of Net Sales\nGross profit\t578.7\t23.2%\t450.2\t21.3%\nSelling general and administrative expenses\t251.3\t10.1%\t245.0\t11.6%\nEngineering expenses\t82.0\t3.3%\t82.3\t3.9%\nAmortization of intangibles\t14.8\t0.6%\t14.9\t0.7%\nBad debt expense\t5.8\t0.2%\t0.8\t-%\nRestructuring expenses\t0.8\t-%\t1.3\t0.1%\nIncome from operations\t224.0\t9.0%\t105.9\t5.0%\n", "q10k_tbl_55": "\tNine Months Ended September 30\t\t\t\n\t2020\t\t2019\t\n\t$\t% of Net Sales(1)\t$\t% of Net Sales\nGross profit\t1461.9\t22.7%\t1470.8\t22.5%\nSelling general and administrative expenses\t718.4\t11.2%\t767.9\t11.8%\nEngineering expenses\t242.7\t3.8%\t254.3\t3.9%\nAmortization of intangibles\t44.7\t0.7%\t45.6\t0.7%\nGoodwill impairment charge\t20.0\t0.3%\t0\t-%\nBad debt expense\t9.0\t0.1%\t2.1\t-%\nRestructuring expenses\t5.4\t0.1%\t3.0\t-%\nIncome from operations\t421.7\t6.6%\t397.9\t6.1%\n", "q10k_tbl_56": "\tSeptember 30 2020\nCredit facility expires 2023\t271.2\n1.002% Senior term loan due 2025\t292.4\nSenior term loan due 2022\t175.4\nSenior term loans due between 2021 and 2028\t768.4\nOther long-term debt\t10.9\n", "q10k_tbl_57": "Exhibit Number\tDescription of Exhibit\tThe filings referenced for incorporation by reference are AGCO Corporation\n3.1\tAmended and Restated By-laws\tAugust 21 2020 Form 8-K Exhibit 3.1\n31.1\tCertification of Martin Richenhagen\tFiled herewith\n31.2\tCertification of Andrew H. Beck\tFiled herewith\n32.1\tCertification of Martin Richenhagen and Andrew H. Beck\tFurnished herewith\n101\tThe following unaudited financial information from this Quarterly Report on Form 10-Q for the quarter ended September 30 2020 are formatted in Inline XBRL: (i) Condensed Consolidated Balance Sheets; (ii) Condensed Consolidated Statements of Operations; (iii) Condensed Consolidated Statements of Comprehensive Income (Loss); (iv) Condensed Consolidated Statements of Cash Flows; and (v) Notes to Condensed Consolidated Financial Statements\tFiled herewith\n104\tCover Page Interactive Data File - the cover page from this Quarterly Report on Form 10-Q for the quarter ended September 30 2020 is formatted in Inline XBRL\tFiled herewith\n"}{"bs": "q10k_tbl_1", "is": "q10k_tbl_2", "cf": "q10k_tbl_6"}None
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2020
OR
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _________ to _________
Commission File Number: 001-12930
AGCO CORPORATION
(Exact name of Registrant as specified in its charter)
Delaware
58-1960019
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
4205 River Green Parkway
Duluth,
Georgia
30096
(Address of principal executive offices)
(Zip Code)
(770)813-9200
(Registrants telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act
Title of Class
Trading Symbol
Name of exchange on which registered
Common stock
AGCO
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
☒Yeso No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
☒Yeso No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
☒
Large accelerated filer
☐
Accelerated filer
☐
Non-accelerated filer
☐
Smaller reporting company
☐
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No
As of November 2, 2020, there were 74,899,512 shares of the registrant’s common stock, par value of $0.01 per share, outstanding.
Long-term debt, less current portion and debt issuance costs
1,429.3
1,191.8
Operating lease liabilities
139.1
148.6
Pension and postretirement health care benefits
224.6
232.1
Deferred tax liabilities
106.6
107.0
Other noncurrent liabilities
333.3
288.7
Total liabilities
5,090.4
4,852.7
Commitments and contingencies (Note 18)
Stockholders’ Equity:
AGCO Corporation stockholders’ equity:
Preferred stock; $0.01 par value, 1,000,000 shares authorized, no shares issued or outstanding in 2020 and 2019
—
—
Common stock; $0.01 par value, 150,000,000 shares authorized, 74,899,318 and 75,471,562 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively
0.8
0.8
Additional paid-in capital
24.2
4.7
Retained earnings
4,635.7
4,443.5
Accumulated other comprehensive loss
(1,851.0)
(1,595.2)
Total AGCO Corporation stockholders’ equity
2,809.7
2,853.8
Noncontrolling interests
40.2
53.2
Total stockholders’ equity
2,849.9
2,907.0
Total liabilities and stockholders’ equity
$
7,940.3
$
7,759.7
See accompanying notes to condensed consolidated financial statements.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
1.BASIS OF PRESENTATION
The condensed consolidated financial statements of AGCO Corporation and its subsidiaries (the “Company” or “AGCO”) included herein have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary to present fairly the Company’s financial position, results of operations, comprehensive income (loss) and cash flows at the dates and for the periods presented. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Results for interim periods are not necessarily indicative of the results for the year.
The Company cannot predict the ongoing impact of the coronavirus (“COVID-19”) pandemic due to increased volatility in global economic and political environments, uncertain market demand for its products, supply chain disruptions, possible workforce unavailability, exchange rate and commodity price volatility and availability of financing, and their impact to the Company’s net sales, production volumes, costs and overall financial condition and available funding. The Company may be required to record significant impairment charges in the future with respect to noncurrent assets such as goodwill and other intangible assets and equity method investments, whose fair values may be negatively affected by the COVID-19 pandemic. The Company also may be required to write-down obsolete inventory due to decreased customer demand and sales orders. The Company is closely monitoring the collection of accounts receivable, as well as the operating results of its finance joint ventures around the world. If economic conditions around the world continue to deteriorate, the Company and its finance joint ventures may not collect accounts receivable at expected levels, and the operating results of its finance joint ventures may be negatively impacted, thus negatively impacting the Company’s results of operations and financial condition. The Company also is closely assessing its compliance with debt covenants, the recognition of any future insurance recoveries, cash flow hedging forecasts as compared to actual transactions, the fair value of pension assets, accounting for incentive and stock compensation accruals, revenue recognition and discount reserve setting as well as the realization of deferred tax assets in light of the COVID-19 pandemic.
Recently Adopted Accounting Pronouncements
In March 2020, the FASB issued ASU 2020-04, “Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”), which provides temporary accounting relief for contract modifications to ease the financial reporting burdens related to the expected market transition from LIBOR and other interbank offered rates to a new alternative reference rate. ASU 2020-04 can be applied as of the beginning of the interim period that includes March 12, 2020 or any date thereafter. ASU 2020-04 generally will no longer be available to apply after December 31, 2022. Interest on U.S. dollar borrowings under the Company's credit facility and its April 2020 amendment is calculated based upon LIBOR. In the event that LIBOR is no longer published, interest will be calculated upon a base rate. The credit facility and its April 2020 amendment provide for an expedited amendment process once a replacement for LIBOR is established (see Note 5). The Company adopted this standard as of March 31, 2020. The adoption did not have a material impact to the Company’s results of operations, financial condition and cash flows.
In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”), which requires measurement and recognition of expected versus incurred credit losses for financial assets held. ASU 2016-13 is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods as the adoption of the standard relates to the Company. In April 2019, the FASB issued ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments” (“ASU 2019-04”), which provides, among other things, targeted improvements to certain aspects of accounting for credit losses addressed by ASU 2016-13. In November 2019, the FASB issued ASU 2019-11, “Codification Improvements to Topic 326), Financial Instruments - Credit Losses,” which clarifies the treatment of expected recoveries for amounts previously written-off on purchased receivables, provides transition relief for troubled debt restructurings and allows for certain disclosure simplifications of accrued interest. The effective dates for both ASU 2019-04 and ASU 2019-11 are the same as the effective dates for ASU 2016-13. The Company adopted this standard, and its subsequent modifications, as of
Notes to Condensed Consolidated Financial Statements - Continued
(unaudited)
January 1, 2020. The adoption did not have a material impact to the Company’s results of operations, financial condition and cash flows.
New Accounting Pronouncements to be Adopted
In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes,” which simplifies various aspects related to accounting for income taxes by removing certain exceptions for investments, intraperiod allocations and interim calculations, and adding guidance to reduce complexity in accounting for income taxes. ASU 2019-12 is effective for annual periods beginning after December 15, 2020, and interim periods within those annual periods using a prospective approach. Early adoption is permitted. Depending on the amendment, adoption may be applied on the retrospective, modified retrospective or prospective basis. The standard will not have a material impact on the Company's results of operations, financial condition and cash flows.
As discussed above, in June 2016, the FASB issued ASU 2016-13, which requires measurement and recognition of expected versus incurred credit losses for financial assets held. In November 2019, the FASB issued ASU 2019-10, “Financial Instruments - Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates,” which delays the effective date of ASU 2016-13 for smaller reporting companies and other non-SEC reporting entities. This applies to the Company’s equity method finance joint ventures who are now required to adopt ASU 2016-13 for annual periods beginning after December 15, 2022 and interim periods within those annual periods. The standard, and its subsequent modification, will likely impact the results of operations and financial condition of the Company’s finance joint ventures. Therefore, adoption of the standard by the Company’s finance joint ventures will likely impact the Company’s “Investment in affiliates” and “Equity in net earnings of affiliates.” The Company’s finance joint ventures currently are evaluating the impact of ASU 2016-13 to their results of operations and financial condition.
Notes to Condensed Consolidated Financial Statements - Continued
(unaudited)
2.RESTRUCTURING EXPENSES
From 2014 through 2020, the Company announced and initiated several actions to rationalize employee headcount at various manufacturing facilities and various administrative offices located in Europe, South America, Africa, China and the United States in order to reduce costs in response to softening global market demand and lower production volumes. The aggregate headcount reduction was approximately 4,160 employees between 2014 and 2019. In addition, during 2019, the Company initiated various restructuring activities in an effort to rationalize its grain storage and protein production system operations. During the nine months ended September 30, 2020, the Company recorded severance and related costs associated with further rationalizations in connection with the termination of approximately 320 employees. Restructuring expenses activity during the three and nine months ended September 30, 2020 is summarized as follows (in millions):
Write-down of Property, Plant and Equipment
Employee Severance
Facility Closure Costs
Total
Balance as of December 31, 2019
$
—
$
4.8
$
—
$
4.8
First quarter 2020 provision
—
0.7
0.2
0.9
First quarter 2020 provision reversal
—
(0.1)
—
(0.1)
First quarter 2020 cash activity
—
(1.7)
(0.2)
(1.9)
Foreign currency translation
—
(0.1)
—
(0.1)
Balance as of March 31, 2020
$
—
$
3.6
$
—
$
3.6
Second quarter 2020 provision
1.6
2.2
—
3.8
Less: Non-cash expense
(1.6)
—
—
(1.6)
Cash expense
—
2.2
—
2.2
Second quarter 2020 cash activity
—
(0.8)
—
(0.8)
Foreign currency translation
—
(0.1)
—
(0.1)
Balance as of June 30, 2020
$
—
$
4.9
$
—
$
4.9
Third quarter 2020 provision
—
0.9
—
0.9
Third quarter 2020 cash activity
—
(1.1)
—
(1.1)
Third quarter 2020 provision reversal
—
(0.1)
—
(0.1)
Balance as of September 30, 2020
$
—
$
4.6
$
—
$
4.6
3.STOCK COMPENSATION PLANS
The Company recorded stock compensation expense as follows for the three and nine months ended September 30, 2020 and 2019 (in millions):
Three Months Ended September 30,
Nine Months Ended September 30,
2020
2019
2020
2019
Cost of goods sold
$
0.5
$
0.3
$
0.9
$
1.3
Selling, general and administrative expenses
13.7
7.8
26.3
32.0
Total stock compensation expense
$
14.2
$
8.1
$
27.2
$
33.3
Stock Incentive Plan
Under the Company’s Long-Term Incentive Plan (the “Plan”), up to 10,000,000 shares of AGCO common stock may be issued. As of September 30, 2020, of the 10,000,000 shares reserved for issuance under the Plan, approximately 3,252,617 shares were available for grant, assuming the maximum number of shares are earned related to the performance award grants discussed below. The Plan allows the Company, under the direction of the Board of Directors’ Compensation Committee, to make grants of performance shares, stock appreciation rights, restricted stock units and restricted stock awards to employees, officers and non-employee directors of the Company.
Notes to Condensed Consolidated Financial Statements - Continued
(unaudited)
Long-Term Incentive Plan and Related Performance Awards
The weighted average grant-date fair value of performance awards granted under the Plan during the nine months ended September 30, 2020 and 2019 was $70.84 and $61.01, respectively.
During the nine months ended September 30, 2020, the Company granted 425,440 performance awards related to varying performance periods. The awards granted assume the maximum target levels of performance are achieved. The compensation expense associated with all awards granted under the Plan is amortized ratably over the vesting or performance period based on the Company’s projected assessment of the level of performance that will be achieved.
Performance award transactions during the nine months ended September 30, 2020 were as follows and are presented as if the Company were to achieve its maximum levels of performance under the plan awards:
Shares awarded but not earned at January 1
932,182
Shares awarded
425,440
Shares forfeited
(65,858)
Shares earned
—
Shares awarded but not earned at September 30
1,291,764
As of September 30, 2020, the total compensation cost related to unearned performance awards not yet recognized, assuming the Company’s current projected assessment of the level of performance that will be achieved, was approximately $