10-K 1 agco-20231231.htm 10-K agco-20231231
AGCO CORP /DE00008802662023FYfalsehttp://fasb.org/us-gaap/2023#AccountingStandardsUpdate201613MemberP1MP2YP3YP3YP4YP3Yhttp://fasb.org/us-gaap/2023#AssetImpairmentChargesP1YP3Yhttp://fasb.org/us-gaap/2023#AccountsPayableCurrenthttp://fasb.org/us-gaap/2023#AccountsPayableCurrenthttp://fasb.org/us-gaap/2023#OtherAssetsCurrent http://fasb.org/us-gaap/2023#OtherAssetsNoncurrenthttp://fasb.org/us-gaap/2023#OtherLiabilitiesCurrent http://fasb.org/us-gaap/2023#OtherLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2023#OtherAssetsCurrent http://fasb.org/us-gaap/2023#OtherAssetsNoncurrenthttp://fasb.org/us-gaap/2023#OtherLiabilitiesCurrent http://fasb.org/us-gaap/2023#OtherLiabilitiesNoncurrent33.3333.3333.331.51.5http://fasb.org/us-gaap/2023#PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortizationhttp://fasb.org/us-gaap/2023#PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortizationhttp://fasb.org/us-gaap/2023#AccruedLiabilitiesCurrenthttp://fasb.org/us-gaap/2023#AccruedLiabilitiesCurrenthttp://fasb.org/us-gaap/2023#OtherLiabilitiesCurrenthttp://fasb.org/us-gaap/2023#OtherLiabilitiesCurrenthttp://fasb.org/us-gaap/2023#OtherLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2023#OtherLiabilitiesNoncurrent111100008802662023-01-012023-12-3100008802662023-06-30iso4217:USD00008802662024-02-20xbrli:shares00008802662022-01-012022-12-3100008802662021-01-012021-12-31iso4217:USDxbrli:shares00008802662023-12-3100008802662022-12-310000880266us-gaap:CommonStockMember2020-12-310000880266us-gaap:AdditionalPaidInCapitalMember2020-12-310000880266us-gaap:RetainedEarningsMember2020-12-310000880266us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-12-310000880266us-gaap:AccumulatedTranslationAdjustmentMember2020-12-310000880266us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2020-12-310000880266us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310000880266us-gaap:NoncontrollingInterestMember2020-12-3100008802662020-12-310000880266us-gaap:RetainedEarningsMember2021-01-012021-12-310000880266us-gaap:NoncontrollingInterestMember2021-01-012021-12-310000880266us-gaap:CommonStockMember2021-01-012021-12-310000880266us-gaap:AdditionalPaidInCapitalMember2021-01-012021-12-310000880266us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-01-012021-12-310000880266us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-12-310000880266us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-01-012021-12-310000880266us-gaap:AccumulatedTranslationAdjustmentMember2021-01-012021-12-310000880266us-gaap:CommonStockMember2021-12-310000880266us-gaap:AdditionalPaidInCapitalMember2021-12-310000880266us-gaap:RetainedEarningsMember2021-12-310000880266us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-12-310000880266us-gaap:AccumulatedTranslationAdjustmentMember2021-12-310000880266us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-12-310000880266us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310000880266us-gaap:NoncontrollingInterestMember2021-12-3100008802662021-12-310000880266us-gaap:RetainedEarningsMember2022-01-012022-12-310000880266us-gaap:NoncontrollingInterestMember2022-01-012022-12-310000880266us-gaap:CommonStockMember2022-01-012022-12-310000880266us-gaap:AdditionalPaidInCapitalMember2022-01-012022-12-310000880266us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-01-012022-12-310000880266us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-12-310000880266us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-01-012022-12-310000880266us-gaap:AccumulatedTranslationAdjustmentMember2022-01-012022-12-310000880266us-gaap:CommonStockMember2022-12-310000880266us-gaap:AdditionalPaidInCapitalMember2022-12-310000880266us-gaap:RetainedEarningsMember2022-12-310000880266us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-12-310000880266us-gaap:AccumulatedTranslationAdjustmentMember2022-12-310000880266us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-12-310000880266us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310000880266us-gaap:NoncontrollingInterestMember2022-12-310000880266us-gaap:RetainedEarningsMember2023-01-012023-12-310000880266us-gaap:NoncontrollingInterestMember2023-01-012023-12-310000880266us-gaap:RetainedEarningsMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-12-310000880266srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-12-310000880266us-gaap:CommonStockMember2023-01-012023-12-310000880266us-gaap:AdditionalPaidInCapitalMember2023-01-012023-12-310000880266us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-01-012023-12-310000880266us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-12-310000880266us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-01-012023-12-310000880266us-gaap:AccumulatedTranslationAdjustmentMember2023-01-012023-12-310000880266us-gaap:CommonStockMember2023-12-310000880266us-gaap:AdditionalPaidInCapitalMember2023-12-310000880266us-gaap:RetainedEarningsMember2023-12-310000880266us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-12-310000880266us-gaap:AccumulatedTranslationAdjustmentMember2023-12-310000880266us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-12-310000880266us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-310000880266us-gaap:NoncontrollingInterestMember2023-12-31agco:dealer_and_distributor0000880266srt:ScenarioForecastMemberagco:TrimbleAgJointVentureMember2024-06-30xbrli:pure0000880266srt:ScenarioForecastMemberagco:TrimbleInc.Member2024-01-012024-06-300000880266country:TRsrt:SubsidiariesMember2023-01-012023-12-310000880266country:TRsrt:SubsidiariesMember2023-12-31iso4217:TRY0000880266country:TRsrt:SubsidiariesMembercurrency:TRY2023-12-310000880266country:ARsrt:SubsidiariesMember2023-01-012023-12-310000880266country:ARsrt:SubsidiariesMember2023-12-31iso4217:ARS0000880266country:ARcurrency:ARS2023-12-310000880266country:ARagco:AGCOCapitalArgentinaSAMember2023-12-310000880266srt:MinimumMember2023-01-012023-12-310000880266srt:MaximumMember2023-01-012023-12-310000880266agco:LargeSeasonalProductsMembersrt:MaximumMember2023-01-012023-12-310000880266agco:UnitedStatesAndCanadaMemberagco:EquipmentSalesMember2023-01-012023-12-310000880266agco:UnitedStatesAndCanadaMemberagco:ReplacementPartSalesMember2023-01-012023-12-310000880266srt:MinimumMemberagco:InternationalMemberagco:EquipmentSalesMember2023-01-012023-12-310000880266srt:MaximumMemberagco:InternationalMemberagco:EquipmentSalesMember2023-01-012023-12-310000880266agco:ReplacementPartSalesMembersrt:MinimumMemberagco:InternationalMember2023-01-012023-12-310000880266agco:ReplacementPartSalesMembersrt:MaximumMemberagco:InternationalMember2023-01-012023-12-310000880266agco:LargeSeasonalProductsMembersrt:MaximumMemberagco:InternationalMember2023-01-012023-12-310000880266agco:UnitedStatesAndCanadaMemberagco:GrainStorageAndProteinProductionSystemsMember2023-01-012023-12-310000880266srt:NorthAmericaMember2023-01-012023-12-310000880266srt:SouthAmericaMember2023-01-012023-12-310000880266agco:EMEMember2023-01-012023-12-310000880266agco:APAMember2023-01-012023-12-310000880266us-gaap:AccountsReceivableMemberus-gaap:SalesReturnsAndAllowancesMember2023-12-310000880266us-gaap:AccountsReceivableMemberus-gaap:SalesReturnsAndAllowancesMember2022-12-310000880266us-gaap:AllowanceForCreditLossMemberus-gaap:AccountsReceivableMember2023-12-310000880266us-gaap:AllowanceForCreditLossMemberus-gaap:AccountsReceivableMember2022-12-310000880266us-gaap:AccountsReceivableMember2023-12-310000880266us-gaap:AccountsReceivableMember2022-12-310000880266us-gaap:AllowanceForCreditLossMember2022-12-310000880266us-gaap:AllowanceForCreditLossMember2023-01-012023-12-310000880266us-gaap:AllowanceForCreditLossMember2023-12-310000880266us-gaap:AllowanceForCreditLossMember2021-12-310000880266us-gaap:AllowanceForCreditLossMember2022-01-012022-12-310000880266us-gaap:AllowanceForCreditLossMember2020-12-310000880266us-gaap:AllowanceForCreditLossMember2021-01-012021-12-310000880266us-gaap:BuildingAndBuildingImprovementsMembersrt:MinimumMember2023-12-310000880266us-gaap:BuildingAndBuildingImprovementsMembersrt:MaximumMember2023-12-310000880266srt:MinimumMemberus-gaap:MachineryAndEquipmentMember2023-12-310000880266srt:MaximumMemberus-gaap:MachineryAndEquipmentMember2023-12-310000880266us-gaap:FurnitureAndFixturesMembersrt:MinimumMember2023-12-310000880266us-gaap:FurnitureAndFixturesMembersrt:MaximumMember2023-12-310000880266agco:GoodwillImpairmentLossMember2023-12-310000880266srt:MinimumMember2023-12-310000880266srt:MaximumMember2023-12-310000880266agco:TechnologyAndPatentsMember2023-01-012023-12-310000880266us-gaap:CustomerRelationshipsMember2023-01-012023-12-310000880266us-gaap:TrademarksAndTradeNamesMember2023-01-012023-12-310000880266us-gaap:UseRightsMember2023-01-012023-12-310000880266agco:MasseyFergusonMember2023-01-012023-12-31agco:country0000880266agco:ValtraBrandMember2023-01-012023-12-310000880266us-gaap:SellingGeneralAndAdministrativeExpensesMember2023-01-012023-12-310000880266us-gaap:SellingGeneralAndAdministrativeExpensesMember2022-01-012022-12-310000880266us-gaap:SellingGeneralAndAdministrativeExpensesMember2021-01-012021-12-310000880266us-gaap:AccumulatedDefinedBenefitPlansAdjustmentAttributableToNoncontrollingInterestMember2023-01-012023-12-310000880266us-gaap:AccumulatedGainLossNetCashFlowHedgeNoncontrollingInterestMember2023-01-012023-12-310000880266us-gaap:AccumulatedForeignCurrencyAdjustmentAttributableToNoncontrollingInterestMember2023-01-012023-12-310000880266us-gaap:AociAttributableToNoncontrollingInterestMember2023-01-012023-12-310000880266us-gaap:AccumulatedDefinedBenefitPlansAdjustmentAttributableToNoncontrollingInterestMember2022-01-012022-12-310000880266us-gaap:AccumulatedGainLossNetCashFlowHedgeNoncontrollingInterestMember2022-01-012022-12-310000880266us-gaap:AccumulatedForeignCurrencyAdjustmentAttributableToNoncontrollingInterestMember2022-01-012022-12-310000880266us-gaap:AociAttributableToNoncontrollingInterestMember2022-01-012022-12-310000880266us-gaap:AccumulatedDefinedBenefitPlansAdjustmentAttributableToNoncontrollingInterestMember2021-01-012021-12-310000880266us-gaap:AccumulatedGainLossNetCashFlowHedgeNoncontrollingInterestMember2021-01-012021-12-310000880266us-gaap:AccumulatedForeignCurrencyAdjustmentAttributableToNoncontrollingInterestMember2021-01-012021-12-310000880266us-gaap:AociAttributableToNoncontrollingInterestMember2021-01-012021-12-310000880266us-gaap:BridgeLoanMember2023-09-280000880266us-gaap:BridgeLoanMember2023-09-282023-09-280000880266us-gaap:BridgeLoanMember2023-12-012023-12-310000880266us-gaap:BridgeLoanMember2023-12-310000880266us-gaap:BridgeLoanMember2023-01-012023-12-310000880266agco:JCAMember2022-05-022022-05-02iso4217:CAD0000880266agco:JCAMember2022-05-020000880266agco:AppareoMember2022-01-012022-01-010000880266agco:AppareoMember2022-01-010000880266agco:AppareoMember2022-01-010000880266us-gaap:CustomerRelationshipsMemberagco:JCAAndAppareoMember2023-12-310000880266us-gaap:TechnologyBasedIntangibleAssetsMemberagco:JCAAndAppareoMember2023-12-310000880266agco:JCAAndAppareoMemberus-gaap:TrademarksMember2023-12-310000880266agco:JCAAndAppareoMemberus-gaap:NoncompeteAgreementsMember2023-12-310000880266agco:JCAAndAppareoMember2023-12-310000880266us-gaap:LandMember2023-12-310000880266us-gaap:LandMember2022-12-310000880266us-gaap:BuildingAndBuildingImprovementsMember2023-12-310000880266us-gaap:BuildingAndBuildingImprovementsMember2022-12-310000880266us-gaap:MachineryAndEquipmentMember2023-12-310000880266us-gaap:MachineryAndEquipmentMember2022-12-310000880266us-gaap:FurnitureAndFixturesMember2023-12-310000880266us-gaap:FurnitureAndFixturesMember2022-12-310000880266agco:UnitedStatesCanadaEuropeandBrazilMember2023-01-012023-12-310000880266agco:UnitedStatesCanadaEuropeandBrazilMember2022-01-012022-12-310000880266us-gaap:TradeAccountsReceivableMember2023-01-012023-12-310000880266us-gaap:TradeAccountsReceivableMember2022-01-012022-12-310000880266us-gaap:OtherExpenseMember2023-01-012023-12-310000880266us-gaap:OtherExpenseMember2022-01-012022-12-310000880266us-gaap:OtherExpenseMember2021-01-012021-12-310000880266srt:NorthAmericaMember2020-12-310000880266srt:SouthAmericaMember2020-12-310000880266agco:EMEMember2020-12-310000880266agco:APAMember2020-12-310000880266srt:NorthAmericaMember2021-01-012021-12-310000880266srt:SouthAmericaMember2021-01-012021-12-310000880266agco:EMEMember2021-01-012021-12-310000880266agco:APAMember2021-01-012021-12-310000880266srt:NorthAmericaMember2021-12-310000880266srt:SouthAmericaMember2021-12-310000880266agco:EMEMember2021-12-310000880266agco:APAMember2021-12-310000880266srt:NorthAmericaMember2022-01-012022-12-310000880266srt:SouthAmericaMember2022-01-012022-12-310000880266agco:EMEMember2022-01-012022-12-310000880266agco:APAMember2022-01-012022-12-310000880266srt:NorthAmericaMember2022-12-310000880266srt:SouthAmericaMember2022-12-310000880266agco:EMEMember2022-12-310000880266agco:APAMember2022-12-310000880266srt:NorthAmericaMember2023-12-310000880266srt:SouthAmericaMember2023-12-310000880266agco:EMEMember2023-12-310000880266agco:APAMember2023-12-310000880266us-gaap:TrademarksAndTradeNamesMember2021-12-310000880266us-gaap:CustomerRelationshipsMember2021-12-310000880266agco:TechnologyAndPatentsMember2021-12-310000880266us-gaap:UseRightsMember2021-12-310000880266us-gaap:TrademarksAndTradeNamesMember2022-01-012022-12-310000880266us-gaap:CustomerRelationshipsMember2022-01-012022-12-310000880266agco:TechnologyAndPatentsMember2022-01-012022-12-310000880266us-gaap:UseRightsMember2022-01-012022-12-310000880266us-gaap:TrademarksAndTradeNamesMember2022-12-310000880266us-gaap:CustomerRelationshipsMember2022-12-310000880266agco:TechnologyAndPatentsMember2022-12-310000880266us-gaap:UseRightsMember2022-12-310000880266us-gaap:TrademarksAndTradeNamesMember2023-12-310000880266us-gaap:CustomerRelationshipsMember2023-12-310000880266agco:TechnologyAndPatentsMember2023-12-310000880266us-gaap:UseRightsMember2023-12-310000880266us-gaap:TrademarksAndTradeNamesMember2021-12-310000880266us-gaap:TrademarksAndTradeNamesMember2022-01-012022-12-310000880266us-gaap:TrademarksAndTradeNamesMember2022-12-310000880266us-gaap:TrademarksAndTradeNamesMember2023-01-012023-12-310000880266us-gaap:TrademarksAndTradeNamesMember2023-12-310000880266agco:IntangibleAssetsExcludingIntellectualPropertyMember2023-01-012023-12-310000880266agco:IntangibleAssetsExcludingIntellectualPropertyMember2022-01-012022-12-310000880266agco:IntangibleAssetsExcludingIntellectualPropertyMember2021-01-012021-12-310000880266agco:FinanceJointVenturesMember2023-12-310000880266agco:FinanceJointVenturesMember2022-12-310000880266agco:ManufacturingJointVenturesMember2023-12-310000880266agco:ManufacturingJointVenturesMember2022-12-310000880266agco:OtherJointVenturesMember2023-12-310000880266agco:OtherJointVenturesMember2022-12-310000880266agco:FinanceJointVenturesMember2023-01-012023-12-310000880266agco:FinanceJointVenturesMember2022-01-012022-12-310000880266agco:FinanceJointVenturesMember2021-01-012021-12-310000880266agco:ManufacturingAndOtherJointVenturesMember2023-01-012023-12-310000880266agco:ManufacturingAndOtherJointVenturesMember2022-01-012022-12-310000880266agco:ManufacturingAndOtherJointVenturesMember2021-01-012021-12-310000880266us-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2023-12-310000880266us-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2022-12-310000880266us-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2023-01-012023-12-310000880266us-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2022-01-012022-12-310000880266us-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2021-01-012021-12-310000880266srt:AffiliatedEntityMember2023-12-310000880266srt:AffiliatedEntityMember2022-12-310000880266agco:RussianFinanceJointVentureMember2022-01-012022-12-310000880266us-gaap:LineOfCreditMemberagco:RevolvingCreditFacilityAndTermLoanExpires2027Memberus-gaap:RevolvingCreditFacilityMember2023-12-310000880266us-gaap:LineOfCreditMemberagco:RevolvingCreditFacilityAndTermLoanExpires2027Memberus-gaap:RevolvingCreditFacilityMember2022-12-310000880266agco:SeniorNotesDue20251.002Memberus-gaap:SeniorNotesMember2019-01-250000880266agco:SeniorNotesDue20251.002Memberus-gaap:SeniorNotesMember2023-12-310000880266agco:SeniorNotesDue20251.002Memberus-gaap:SeniorNotesMember2022-12-310000880266agco:EuropeanInvestmentBankEIBSeniorTermLoanDue2029Memberus-gaap:LineOfCreditMember2023-12-310000880266agco:EuropeanInvestmentBankEIBSeniorTermLoanDue2029Memberus-gaap:LineOfCreditMember2022-12-310000880266agco:SeniorTermLoansDueBetween2023And2028Memberus-gaap:SeniorNotesMember2023-12-310000880266agco:SeniorTermLoansDueBetween2023And2028Memberus-gaap:SeniorNotesMember2022-12-310000880266agco:A0800SeniorNotesDue2028Memberus-gaap:SeniorNotesMember2021-10-060000880266agco:A0800SeniorNotesDue2028Memberus-gaap:SeniorNotesMember2023-12-310000880266agco:A0800SeniorNotesDue2028Memberus-gaap:SeniorNotesMember2022-12-310000880266agco:OtherLongTermDebtMember2023-12-310000880266agco:OtherLongTermDebtMember2022-12-310000880266agco:SeniorTermLoansDue2023Memberus-gaap:SeniorNotesMember2023-12-310000880266agco:SeniorTermLoansDue2023Memberus-gaap:SeniorNotesMember2022-12-310000880266us-gaap:LineOfCreditMemberagco:A125BillionMultiCurrencyUnsecuredCreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2022-12-310000880266us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2018-10-310000880266us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2022-12-012022-12-310000880266agco:BilateralRevolvingCreditFacilityMemberus-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2022-12-012022-12-310000880266us-gaap:LineOfCreditMemberagco:A125BillionMultiCurrencyUnsecuredCreditFacilityUSDollarTrancheMemberus-gaap:RevolvingCreditFacilityMember2022-12-310000880266us-gaap:LineOfCreditMemberagco:A125BillionMultiCurrencyUnsecuredCreditFacilityMultiCurrencyTrancheMemberus-gaap:RevolvingCreditFacilityMember2022-12-310000880266us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMemberus-gaap:LineOfCreditMemberagco:InterestAccrualOptionOneMemberagco:MultiCurrencyRevolvingCreditFacilityMember2022-12-012022-12-310000880266us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMemberus-gaap:LineOfCreditMemberagco:InterestAccrualOptionOneMemberagco:MultiCurrencyRevolvingCreditFacilityMembersrt:MinimumMember2022-12-012022-12-310000880266us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMemberus-gaap:LineOfCreditMemberagco:InterestAccrualOptionOneMemberagco:MultiCurrencyRevolvingCreditFacilityMembersrt:MaximumMember2022-12-012022-12-310000880266us-gaap:LineOfCreditMemberagco:InterestAccrualOptionTwoMemberagco:MultiCurrencyRevolvingCreditFacilityMemberus-gaap:FederalFundsEffectiveSwapRateMember2022-12-012022-12-310000880266us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMemberus-gaap:LineOfCreditMemberagco:InterestAccrualOptionTwoMemberagco:MultiCurrencyRevolvingCreditFacilityMember2022-12-012022-12-310000880266us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMemberus-gaap:LineOfCreditMemberagco:InterestAccrualOptionTwoMemberagco:MultiCurrencyRevolvingCreditFacilityMembersrt:MinimumMember2022-12-012022-12-310000880266us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMemberus-gaap:LineOfCreditMemberagco:InterestAccrualOptionTwoMemberagco:MultiCurrencyRevolvingCreditFacilityMembersrt:MaximumMember2022-12-012022-12-310000880266us-gaap:LineOfCreditMemberagco:EuroInterbankOfferedRateEURIBORMemberagco:MultiCurrencyRevolvingCreditFacilityMembersrt:MinimumMember2022-12-012022-12-310000880266us-gaap:LineOfCreditMemberagco:EuroInterbankOfferedRateEURIBORMemberagco:MultiCurrencyRevolvingCreditFacilityMembersrt:MaximumMember2022-12-012022-12-310000880266us-gaap:LineOfCreditMemberagco:A125BillionMultiCurrencyUnsecuredCreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2023-12-310000880266agco:DelayedDrawTermLoanFacilityMember2023-12-310000880266agco:UncommittedRevolvingCreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2022-06-30iso4217:EUR0000880266agco:UncommittedRevolvingCreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2023-12-310000880266agco:UncommittedRevolvingCreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2022-12-310000880266agco:A0800SeniorNotesDue2028Memberus-gaap:SeniorNotesMember2021-10-062021-10-060000880266agco:EuropeanInvestmentBankEIBSeniorTermLoanDue2029Memberagco:MultiCurrencyFinanceContractMember2023-09-290000880266agco:EuropeanInvestmentBankEIBSeniorTermLoanDue2029Memberagco:MultiCurrencyFinanceContractMember2023-10-260000880266us-gaap:SubsequentEventMemberagco:EuropeanInvestmentBankEIBMultiCurrencyFacilityDue2030Memberagco:MultiCurrencyFinanceContractMember2024-01-250000880266us-gaap:SubsequentEventMemberagco:EuropeanInvestmentBankEIBMultiCurrencyFacilityDue2030Memberagco:MultiCurrencyFinanceContractMember2024-02-150000880266agco:SeniorTermLoansDueBetween2023And2028Memberus-gaap:SeniorNotesMember2016-10-31agco:loan_agreement0000880266agco:SeniorTermLoansDueBetween2023And2028Memberus-gaap:SeniorNotesMember2018-08-310000880266agco:SeniorTermLoansDueBetween2023And2028Memberus-gaap:SeniorNotesMember2019-10-012022-04-300000880266agco:SeniorTermLoansDueBetween2023And2028Memberus-gaap:SeniorNotesMember2023-10-192023-10-190000880266agco:SeniorTermLoansDueBetween2023And2028Memberus-gaap:SeniorNotesMember2021-08-012022-02-280000880266agco:SeniorTermLoansDueBetween2023And2028Memberus-gaap:SeniorNotesMember2023-08-012023-08-010000880266us-gaap:LineOfCreditMemberagco:SeniorTermLoansDueBetween2023And2028Membersrt:MinimumMember2023-01-012023-12-310000880266us-gaap:LineOfCreditMemberagco:SeniorTermLoansDueBetween2023And2028Membersrt:MaximumMember2023-01-012023-12-310000880266us-gaap:LineOfCreditMemberagco:EuroInterbankOfferedRateEURIBORMemberagco:SeniorTermLoansDueBetween2023And2028Membersrt:MinimumMember2023-01-012023-12-310000880266us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMemberagco:InterestAccrualOptionOneMemberus-gaap:BridgeLoanMember2023-09-282023-09-280000880266us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMemberagco:InterestAccrualOptionOneMembersrt:MinimumMemberus-gaap:BridgeLoanMember2023-09-282023-09-280000880266us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMemberagco:InterestAccrualOptionOneMembersrt:MaximumMemberus-gaap:BridgeLoanMember2023-09-282023-09-280000880266agco:InterestAccrualOptionTwoMemberus-gaap:BridgeLoanMemberus-gaap:FederalFundsEffectiveSwapRateMember2023-09-282023-09-280000880266us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMemberagco:InterestAccrualOptionTwoMemberus-gaap:BridgeLoanMember2023-09-282023-09-280000880266us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMemberagco:InterestAccrualOptionTwoMembersrt:MinimumMemberus-gaap:BridgeLoanMember2023-09-282023-09-280000880266us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMemberagco:InterestAccrualOptionTwoMembersrt:MaximumMemberus-gaap:BridgeLoanMember2023-09-282023-09-280000880266agco:ShortTermDebtOtherMember2023-12-310000880266agco:ShortTermDebtOtherMember2022-12-310000880266us-gaap:EmployeeSeveranceMember2020-12-310000880266us-gaap:FacilityClosingMember2020-12-310000880266agco:WritedownOfPropertyPlantAndEquipmentMember2020-12-310000880266agco:OtherMember2020-12-310000880266agco:LossonSaleofJointVentureMember2020-12-310000880266us-gaap:EmployeeSeveranceMember2021-01-012021-12-310000880266us-gaap:FacilityClosingMember2021-01-012021-12-310000880266agco:WritedownOfPropertyPlantAndEquipmentMember2021-01-012021-12-310000880266agco:OtherMember2021-01-012021-12-310000880266agco:LossonSaleofJointVentureMember2021-01-012021-12-310000880266us-gaap:EmployeeSeveranceMember2021-12-310000880266us-gaap:FacilityClosingMember2021-12-310000880266agco:WritedownOfPropertyPlantAndEquipmentMember2021-12-310000880266agco:OtherMember2021-12-310000880266agco:LossonSaleofJointVentureMember2021-12-310000880266us-gaap:EmployeeSeveranceMember2022-01-012022-12-310000880266us-gaap:FacilityClosingMember2022-01-012022-12-310000880266agco:WritedownOfPropertyPlantAndEquipmentMember2022-01-012022-12-310000880266agco:OtherMember2022-01-012022-12-310000880266agco:LossonSaleofJointVentureMember2022-01-012022-12-310000880266us-gaap:EmployeeSeveranceMember2022-12-310000880266us-gaap:FacilityClosingMember2022-12-310000880266agco:WritedownOfPropertyPlantAndEquipmentMember2022-12-310000880266agco:OtherMember2022-12-310000880266agco:LossonSaleofJointVentureMember2022-12-310000880266us-gaap:EmployeeSeveranceMember2023-01-012023-12-310000880266us-gaap:FacilityClosingMember2023-01-012023-12-310000880266agco:WritedownOfPropertyPlantAndEquipmentMember2023-01-012023-12-310000880266agco:OtherMember2023-01-012023-12-310000880266agco:LossonSaleofJointVentureMember2023-01-012023-12-310000880266us-gaap:EmployeeSeveranceMember2023-12-310000880266us-gaap:FacilityClosingMember2023-12-310000880266agco:WritedownOfPropertyPlantAndEquipmentMember2023-12-310000880266agco:OtherMember2023-12-310000880266agco:LossonSaleofJointVentureMember2023-12-3100008802662019-10-012019-12-310000880266agco:LossonSaleofJointVentureMember2019-10-012019-12-310000880266agco:GainOnSaleOfJointVentureMember2021-01-012021-12-310000880266agco:RussianFinanceJointVentureMemberagco:EntityUnderTimeLimitedGeneralLicenseMember2022-01-012022-03-310000880266agco:RussianFinanceJointVentureMember2022-01-012022-03-310000880266us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeContractMember2023-12-310000880266us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeContractMember2022-12-310000880266us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeContractMember2021-12-310000880266us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberus-gaap:CommodityContractMember2023-12-310000880266us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberus-gaap:CommodityContractMember2022-12-310000880266us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberus-gaap:CommodityContractMember2021-12-310000880266us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeContractMember2023-01-012023-12-310000880266us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeContractMemberus-gaap:CostOfSalesMember2023-01-012023-12-310000880266us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberus-gaap:CommodityContractMember2023-01-012023-12-310000880266us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberus-gaap:CommodityContractMemberus-gaap:CostOfSalesMember2023-01-012023-12-310000880266us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2023-01-012023-12-310000880266us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeContractMember2022-01-012022-12-310000880266us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeContractMemberus-gaap:CostOfSalesMember2022-01-012022-12-310000880266us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberus-gaap:CommodityContractMember2022-01-012022-12-310000880266us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberus-gaap:CommodityContractMemberus-gaap:CostOfSalesMember2022-01-012022-12-310000880266us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2022-01-012022-12-310000880266us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeContractMember2021-01-012021-12-310000880266us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeContractMemberus-gaap:CostOfSalesMember2021-01-012021-12-310000880266us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberus-gaap:CommodityContractMember2021-01-012021-12-310000880266us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberus-gaap:CommodityContractMemberus-gaap:CostOfSalesMember2021-01-012021-12-310000880266us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2021-01-012021-12-310000880266us-gaap:ForeignExchangeContractMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-12-310000880266us-gaap:DesignatedAsHedgingInstrumentMemberagco:CrossCurrencyInterestRateContractPaymentMemberus-gaap:NetInvestmentHedgingMember2021-01-190000880266us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:NetInvestmentHedgingMemberagco:CrossCurrencyInterestRateContractReceiptMember2021-01-190000880266us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:NetInvestmentHedgingMemberagco:CrossCurrencyInterestRateContractReceiptMember2021-01-192021-01-190000880266us-gaap:DesignatedAsHedgingInstrumentMemberagco:CrossCurrencyInterestRateContractPaymentMembersrt:ScenarioForecastMemberus-gaap:NetInvestmentHedgingMember2028-01-290000880266us-gaap:DesignatedAsHedgingInstrumentMemberagco:CrossCurrencyInterestRateContractPaymentMemberus-gaap:NetInvestmentHedgingMember2023-12-310000880266us-gaap:DesignatedAsHedgingInstrumentMembersrt:ScenarioForecastMemberus-gaap:NetInvestmentHedgingMemberagco:CrossCurrencyInterestRateContractReceiptMember2028-01-290000880266us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:NetInvestmentHedgingMemberagco:ForeignCurrencyDenominatedDebtMember2023-11-300000880266us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CrossCurrencyInterestRateContractMember2023-12-310000880266us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CrossCurrencyInterestRateContractMember2022-12-310000880266us-gaap:DesignatedAsHedgingInstrumentMemberagco:ForeignCurrencyDenominatedDebtMember2023-01-012023-12-310000880266us-gaap:DesignatedAsHedgingInstrumentMemberagco:ForeignCurrencyDenominatedDebtMember2022-01-012022-12-310000880266us-gaap:DesignatedAsHedgingInstrumentMemberagco:ForeignCurrencyDenominatedDebtMember2021-01-012021-12-310000880266us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CrossCurrencyInterestRateContractMember2023-01-012023-12-310000880266us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CrossCurrencyInterestRateContractMember2022-01-012022-12-310000880266us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CrossCurrencyInterestRateContractMember2021-01-012021-12-310000880266us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMember2023-12-310000880266us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMember2022-12-310000880266us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherNonoperatingIncomeExpenseMember2023-01-012023-12-310000880266us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherNonoperatingIncomeExpenseMember2022-01-012022-12-310000880266us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherNonoperatingIncomeExpenseMember2021-01-012021-12-310000880266us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2023-12-310000880266us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CommodityContractMember2023-12-310000880266us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CurrencySwapMember2023-12-310000880266us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2022-12-310000880266us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CommodityContractMember2022-12-310000880266us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CurrencySwapMember2022-12-310000880266us-gaap:CostOfSalesMember2023-01-012023-12-310000880266us-gaap:CostOfSalesMember2022-01-012022-12-310000880266us-gaap:CostOfSalesMember2021-01-012021-12-310000880266agco:TwoThousandSixPlanMember2023-12-310000880266agco:LongTermIncentivePlanMember2023-01-012023-12-310000880266agco:LongTermIncentivePlanMembersrt:MinimumMember2023-01-012023-12-310000880266agco:LongTermIncentivePlanMembersrt:MaximumMember2023-01-012023-12-310000880266us-gaap:PerformanceSharesMember2023-01-012023-12-310000880266us-gaap:PerformanceSharesMember2022-01-012022-12-310000880266us-gaap:PerformanceSharesMember2021-01-012021-12-310000880266us-gaap:PerformanceSharesMember2022-12-310000880266us-gaap:PerformanceSharesMember2023-12-310000880266agco:CertainRetireesAndOtherIndividualsMemberus-gaap:PerformanceSharesMember2022-12-310000880266us-gaap:SubsequentEventMemberus-gaap:PerformanceSharesMember2024-02-012024-02-270000880266us-gaap:RestrictedStockUnitsRSUMember2023-01-012023-12-310000880266us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-12-310000880266us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-12-310000880266us-gaap:RestrictedStockUnitsRSUMember2022-12-310000880266us-gaap:RestrictedStockUnitsRSUMember2023-12-310000880266agco:CertainExecutivesAchievedMetricImprovementMemberus-gaap:RestrictedStockUnitsRSUMember2023-01-012023-12-310000880266us-gaap:SubsequentEventMemberus-gaap:RestrictedStockUnitsRSUMember2024-01-012024-01-310000880266us-gaap:SubsequentEventMemberus-gaap:PerformanceSharesMember2024-01-302024-01-300000880266us-gaap:SubsequentEventMemberus-gaap:RestrictedStockUnitsRSUMember2024-01-302024-01-300000880266us-gaap:StockAppreciationRightsSARSMember2023-01-012023-12-310000880266us-gaap:StockAppreciationRightsSARSMember2022-01-012022-12-310000880266us-gaap:StockAppreciationRightsSARSMember2021-01-012021-12-310000880266us-gaap:StockAppreciationRightsSARSMember2023-12-310000880266us-gaap:RestrictedStockMember2023-01-012023-12-310000880266us-gaap:RestrictedStockMember2023-04-272023-04-270000880266us-gaap:ShareBasedCompensationAwardTrancheOneMemberus-gaap:RestrictedStockUnitsRSUMember2023-01-012023-12-310000880266us-gaap:ShareBasedCompensationAwardTrancheTwoMemberus-gaap:RestrictedStockUnitsRSUMember2023-01-012023-12-310000880266us-gaap:RestrictedStockUnitsRSUMemberus-gaap:ShareBasedCompensationAwardTrancheThreeMember2023-01-012023-12-310000880266agco:AcceleratedShareRepurchaseMember2023-11-300000880266agco:AcceleratedShareRepurchaseMember2023-11-012023-12-310000880266us-gaap:SubsequentEventMemberagco:AcceleratedShareRepurchaseMember2024-01-012024-01-310000880266agco:AcceleratedShareRepurchaseMember2021-08-012021-11-30agco:agreement0000880266agco:AcceleratedShareRepurchaseMember2021-11-300000880266agco:AcceleratedShareRepurchaseMember2021-08-012021-12-310000880266agco:AcceleratedShareRepurchaseMember2022-01-012022-01-310000880266us-gaap:SubsequentEventMember2024-01-182024-01-1800008802662023-04-272023-04-2700008802662023-04-012023-06-3000008802662023-07-012023-09-3000008802662023-10-012023-12-3100008802662023-01-012023-03-310000880266agco:SpecialDividendsMember2023-01-012023-12-3100008802662022-04-282022-04-2800008802662022-07-012022-09-3000008802662022-10-012022-12-3100008802662022-04-012022-06-3000008802662022-01-012022-03-310000880266agco:SpecialDividendsMember2022-01-012022-12-3100008802662021-10-012021-12-3100008802662021-04-012021-06-3000008802662021-07-012021-09-3000008802662021-01-012021-03-310000880266agco:SpecialDividendsMember2021-01-012021-12-310000880266us-gaap:ForeignExchangeContractMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2023-01-012023-12-310000880266us-gaap:ForeignExchangeContractMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-01-012022-12-310000880266us-gaap:CommodityContractMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2023-01-012023-12-310000880266us-gaap:CommodityContractMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-01-012022-12-310000880266us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2023-01-012023-12-310000880266us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-01-012022-12-310000880266us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2023-01-012023-12-310000880266us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2022-01-012022-12-310000880266us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2023-01-012023-12-310000880266us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-01-012022-12-310000880266us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2023-01-012023-12-310000880266us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-01-012022-12-310000880266us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2023-01-012023-12-310000880266us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-01-012022-12-310000880266agco:FinanceJointVenturesMemberagco:RabobankMember2023-12-310000880266agco:FinanceJointVenturesMemberus-gaap:RelatedPartyMember2023-01-012023-12-310000880266agco:FinanceJointVenturesMemberus-gaap:RelatedPartyMember2022-01-012022-12-310000880266agco:FinanceJointVenturesMemberus-gaap:RelatedPartyMember2021-01-012021-12-310000880266agco:FinanceJointVenturesMember2023-01-012023-12-310000880266agco:FinanceJointVenturesMember2022-01-012022-12-310000880266agco:FinanceJointVenturesMember2021-01-012021-12-310000880266agco:TractorsAndFarmEquipmentLimitedMemberagco:AGCOCorporationMember2023-01-012023-12-310000880266agco:TractorsAndFarmEquipmentLimitedMember2023-01-012023-12-310000880266agco:TractorsAndFarmEquipmentLimitedMember2022-01-012022-12-310000880266agco:TractorsAndFarmEquipmentLimitedMember2021-01-012021-12-310000880266agco:SaleOfPartsMemberagco:TractorsAndFarmEquipmentLimitedMember2023-01-012023-12-310000880266agco:SaleOfPartsMemberagco:TractorsAndFarmEquipmentLimitedMember2022-01-012022-12-310000880266agco:SaleOfPartsMemberagco:TractorsAndFarmEquipmentLimitedMember2021-01-012021-12-310000880266country:CH2023-01-012023-12-310000880266agco:TaxBasisAdjustmentForeignMember2023-12-310000880266us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember2022-12-310000880266us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember2023-01-012023-12-310000880266us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember2023-12-310000880266us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember2021-12-310000880266us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember2022-01-012022-12-310000880266us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember2020-12-310000880266us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember2021-01-012021-12-310000880266agco:OperatingLossCarryforwardsByExpirationDateDateTwoMember2023-12-310000880266agco:OperatingLossCarryforwardsByExpirationDateDateThreeMember2023-12-310000880266agco:OperatingLossCarryforwardsByExpirationDateDateFourMember2023-12-310000880266us-gaap:ForeignCountryMember2023-12-310000880266agco:ChangeInTaxPositionsAndJudgementsAndLapsesOfStatutesOfLimitationsMember2022-01-012022-12-310000880266agco:ChangeInTaxPositionsAndJudgementsAndLapsesOfStatutesOfLimitationsMember2023-01-012023-12-310000880266us-gaap:DomesticCountryMember2022-12-310000880266us-gaap:ForeignCountryMember2023-01-012023-12-310000880266us-gaap:ForeignCountryMember2022-12-31iso4217:BRL0000880266agco:EnppMember2023-01-012023-12-310000880266us-gaap:PensionPlansDefinedBenefitMember2023-01-012023-12-310000880266us-gaap:PensionPlansDefinedBenefitMember2022-01-012022-12-310000880266us-gaap:PensionPlansDefinedBenefitMember2021-01-012021-12-310000880266agco:EnppMember2021-01-012021-12-310000880266srt:MinimumMember2022-01-012022-12-310000880266srt:MaximumMember2022-01-012022-12-310000880266srt:MinimumMember2021-01-012021-12-310000880266srt:MaximumMember2021-01-012021-12-310000880266country:USus-gaap:PensionPlansDefinedBenefitMember2023-01-012023-12-310000880266country:USus-gaap:PensionPlansDefinedBenefitMember2022-01-012022-12-310000880266country:USus-gaap:PensionPlansDefinedBenefitMember2021-01-012021-12-310000880266us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2023-01-012023-12-310000880266us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-01-012022-12-310000880266us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-01-012021-12-310000880266us-gaap:PensionPlansDefinedBenefitMember2022-12-310000880266us-gaap:PensionPlansDefinedBenefitMember2021-12-310000880266us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-12-310000880266us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-12-310000880266us-gaap:PensionPlansDefinedBenefitMember2023-12-310000880266us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2023-12-310000880266us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMemberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-12-310000880266us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMemberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-01-012022-12-310000880266us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMemberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-12-310000880266us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMemberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2023-01-012023-12-310000880266us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMemberus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2023-12-310000880266us-gaap:PensionPlansDefinedBenefitMembercountry:GB2023-01-012023-12-310000880266us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberagco:U.S.andBRAZILMember2023-12-310000880266us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMemberagco:U.S.andBRAZILMember2022-12-310000880266country:USus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2023-12-310000880266country:USus-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-12-310000880266country:USus-gaap:PensionPlansDefinedBenefitMember2023-12-310000880266country:USus-gaap:PensionPlansDefinedBenefitMember2022-12-310000880266srt:MinimumMember2022-12-310000880266srt:MaximumMember2022-12-310000880266us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMembercountry:BR2023-12-310000880266us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMembercountry:BR2022-12-310000880266us-gaap:PensionPlansDefinedBenefitMemberus-gaap:ForeignPlanMember2023-12-310000880266us-gaap:PensionPlansDefinedBenefitMembercountry:GB2023-12-310000880266country:USus-gaap:PensionPlansDefinedBenefitMemberus-gaap:DefinedBenefitPlanEquitySecuritiesMember2023-12-310000880266country:USus-gaap:PensionPlansDefinedBenefitMemberus-gaap:DefinedBenefitPlanEquitySecuritiesMember2022-12-310000880266country:USus-gaap:FixedIncomeSecuritiesMemberus-gaap:PensionPlansDefinedBenefitMember2023-12-310000880266country:USus-gaap:FixedIncomeSecuritiesMemberus-gaap:PensionPlansDefinedBenefitMember2022-12-310000880266country:USus-gaap:OtherInvestmentsMemberus-gaap:PensionPlansDefinedBenefitMember2023-12-310000880266country:USus-gaap:OtherInvestmentsMemberus-gaap:PensionPlansDefinedBenefitMember2022-12-310000880266us-gaap:PensionPlansDefinedBenefitMembercountry:GBus-gaap:DefinedBenefitPlanEquitySecuritiesMember2023-12-310000880266us-gaap:PensionPlansDefinedBenefitMembercountry:GBus-gaap:DefinedBenefitPlanEquitySecuritiesMember2022-12-310000880266us-gaap:FixedIncomeSecuritiesMemberus-gaap:PensionPlansDefinedBenefitMembercountry:GB2023-12-310000880266us-gaap:FixedIncomeSecuritiesMemberus-gaap:PensionPlansDefinedBenefitMembercountry:GB2022-12-310000880266us-gaap:OtherInvestmentsMemberus-gaap:PensionPlansDefinedBenefitMembercountry:GB2023-12-310000880266us-gaap:OtherInvestmentsMemberus-gaap:PensionPlansDefinedBenefitMembercountry:GB2022-12-310000880266us-gaap:PensionPlansDefinedBenefitMembercountry:GB2022-12-310000880266us-gaap:PensionPlansDefinedBenefitMemberagco:GlobalEquitySecuritiesMemberus-gaap:FairValueInputsLevel12And3Member2023-12-310000880266us-gaap:PensionPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel1Memberagco:GlobalEquitySecuritiesMember2023-12-310000880266us-gaap:FairValueInputsLevel2Memberus-gaap:PensionPlansDefinedBenefitMemberagco:GlobalEquitySecuritiesMember2023-12-310000880266us-gaap:FairValueInputsLevel3Memberus-gaap:PensionPlansDefinedBenefitMemberagco:GlobalEquitySecuritiesMember2023-12-310000880266us-gaap:PensionPlansDefinedBenefitMemberus-gaap:DefinedBenefitPlanEquitySecuritiesMemberus-gaap:FairValueInputsLevel12And3Member2023-12-310000880266us-gaap:PensionPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel1Memberus-gaap:DefinedBenefitPlanEquitySecuritiesMember2023-12-310000880266us-gaap:FairValueInputsLevel2Memberus-gaap:PensionPlansDefinedBenefitMemberus-gaap:DefinedBenefitPlanEquitySecuritiesMember2023-12-310000880266us-gaap:FairValueInputsLevel3Memberus-gaap:PensionPlansDefinedBenefitMemberus-gaap:DefinedBenefitPlanEquitySecuritiesMember2023-12-310000880266agco:AggregateFixedIncomeSecuritiesMemberus-gaap:PensionPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel12And3Member2023-12-310000880266agco:AggregateFixedIncomeSecuritiesMemberus-gaap:PensionPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel1Member2023-12-310000880266us-gaap:FairValueInputsLevel2Memberagco:AggregateFixedIncomeSecuritiesMemberus-gaap:PensionPlansDefinedBenefitMember2023-12-310000880266agco:AggregateFixedIncomeSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:PensionPlansDefinedBenefitMember2023-12-310000880266us-gaap:FixedIncomeSecuritiesMemberus-gaap:PensionPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel12And3Member2023-12-310000880266us-gaap:FixedIncomeSecuritiesMemberus-gaap:PensionPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel1Member2023-12-310000880266us-gaap:FairValueInputsLevel2Memberus-gaap:FixedIncomeSecuritiesMemberus-gaap:PensionPlansDefinedBenefitMember2023-12-310000880266us-gaap:FixedIncomeSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:PensionPlansDefinedBenefitMember2023-12-310000880266us-gaap:PensionPlansDefinedBenefitMemberus-gaap:PrivateEquityFundsMemberus-gaap:FairValueInputsLevel12And3Member2023-12-310000880266us-gaap:PensionPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel1Memberus-gaap:PrivateEquityFundsMember2023-12-310000880266us-gaap:FairValueInputsLevel2Memberus-gaap:PensionPlansDefinedBenefitMemberus-gaap:PrivateEquityFundsMember2023-12-310000880266us-gaap:FairValueInputsLevel3Memberus-gaap:PensionPlansDefinedBenefitMemberus-gaap:PrivateEquityFundsMember2023-12-310000880266us-gaap:FairValueMeasuredAtNetAssetValuePerShareMemberus-gaap:HedgeFundsMemberus-gaap:PensionPlansDefinedBenefitMember2023-12-310000880266agco:AlternativeInvestmentsMemberus-gaap:PensionPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel12And3Member2023-12-310000880266agco:AlternativeInvestmentsMemberus-gaap:PensionPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel1Member2023-12-310000880266us-gaap:FairValueInputsLevel2Memberagco:AlternativeInvestmentsMemberus-gaap:PensionPlansDefinedBenefitMember2023-12-310000880266agco:AlternativeInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:PensionPlansDefinedBenefitMember2023-12-310000880266us-gaap:MiscellaneousInvestmentsMemberus-gaap:PensionPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel12And3Member2023-12-310000880266us-gaap:MiscellaneousInvestmentsMemberus-gaap:PensionPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel1Member2023-12-310000880266us-gaap:FairValueInputsLevel2Memberus-gaap:MiscellaneousInvestmentsMemberus-gaap:PensionPlansDefinedBenefitMember2023-12-310000880266us-gaap:MiscellaneousInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:PensionPlansDefinedBenefitMember2023-12-310000880266us-gaap:DefinedBenefitPlanCashAndCashEquivalentsMemberus-gaap:FairValueMeasuredAtNetAssetValuePerShareMemberus-gaap:PensionPlansDefinedBenefitMember2023-12-310000880266us-gaap:PensionPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel1Member2023-12-310000880266us-gaap:FairValueInputsLevel2Memberus-gaap:PensionPlansDefinedBenefitMember2023-12-310000880266us-gaap:FairValueInputsLevel3Memberus-gaap:PensionPlansDefinedBenefitMember2023-12-310000880266us-gaap:USTreasurySecuritiesMemberus-gaap:PensionPlansDefinedBenefitMember2023-12-310000880266us-gaap:PensionPlansDefinedBenefitMemberagco:FixedIncomeSecuritiesNonUSMember2023-12-310000880266us-gaap:PensionPlansDefinedBenefitMemberus-gaap:CorporateBondSecuritiesMember2023-12-310000880266us-gaap:PensionPlansDefinedBenefitMemberagco:FixedIncomeSecuritiesHighYieldMember2023-12-310000880266us-gaap:PensionPlansDefinedBenefitMemberagco:AlternativeInvestmentsRelativeValueFundsMember2023-12-310000880266us-gaap:PensionPlansDefinedBenefitMemberagco:AlternativeInvestmentsLongShortEquityFundsMember2023-12-310000880266us-gaap:PensionPlansDefinedBenefitMemberagco:AlternativeInvestmentsEventDrivenFundsMember2023-12-310000880266us-gaap:PensionPlansDefinedBenefitMemberagco:AlternativeInvestmentsCreditFundsMember2023-12-310000880266us-gaap:PensionPlansDefinedBenefitMemberagco:AlternativeInvestmentsHedgedAndNonHedgedFundsMember2023-12-310000880266us-gaap:FairValueInputsLevel3Memberus-gaap:PensionPlansDefinedBenefitMember2022-12-310000880266agco:AlternativeInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:PensionPlansDefinedBenefitMember2022-12-310000880266us-gaap:MiscellaneousInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:PensionPlansDefinedBenefitMember2022-12-310000880266us-gaap:FairValueInputsLevel3Memberus-gaap:PensionPlansDefinedBenefitMember2023-01-012023-12-310000880266agco:AlternativeInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:PensionPlansDefinedBenefitMember2023-01-012023-12-310000880266us-gaap:MiscellaneousInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:PensionPlansDefinedBenefitMember2023-01-012023-12-310000880266us-gaap:PensionPlansDefinedBenefitMemberagco:GlobalEquitySecuritiesMemberus-gaap:FairValueInputsLevel12And3Member2022-12-310000880266us-gaap:PensionPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel1Memberagco:GlobalEquitySecuritiesMember2022-12-310000880266us-gaap:FairValueInputsLevel2Memberus-gaap:PensionPlansDefinedBenefitMemberagco:GlobalEquitySecuritiesMember2022-12-310000880266us-gaap:FairValueInputsLevel3Memberus-gaap:PensionPlansDefinedBenefitMemberagco:GlobalEquitySecuritiesMember2022-12-310000880266us-gaap:DefinedBenefitPlanEquitySecuritiesUsLargeCapMemberus-gaap:PensionPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel12And3Member2022-12-310000880266us-gaap:DefinedBenefitPlanEquitySecuritiesUsLargeCapMemberus-gaap:PensionPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel1Member2022-12-310000880266us-gaap:FairValueInputsLevel2Memberus-gaap:DefinedBenefitPlanEquitySecuritiesUsLargeCapMemberus-gaap:PensionPlansDefinedBenefitMember2022-12-310000880266us-gaap:DefinedBenefitPlanEquitySecuritiesUsLargeCapMemberus-gaap:FairValueInputsLevel3Memberus-gaap:PensionPlansDefinedBenefitMember2022-12-310000880266us-gaap:PensionPlansDefinedBenefitMemberus-gaap:DefinedBenefitPlanEquitySecuritiesMemberus-gaap:FairValueInputsLevel12And3Member2022-12-310000880266us-gaap:PensionPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel1Memberus-gaap:DefinedBenefitPlanEquitySecuritiesMember2022-12-310000880266us-gaap:FairValueInputsLevel2Memberus-gaap:PensionPlansDefinedBenefitMemberus-gaap:DefinedBenefitPlanEquitySecuritiesMember2022-12-310000880266us-gaap:FairValueInputsLevel3Memberus-gaap:PensionPlansDefinedBenefitMemberus-gaap:DefinedBenefitPlanEquitySecuritiesMember2022-12-310000880266agco:AggregateFixedIncomeSecuritiesMemberus-gaap:PensionPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel12And3Member2022-12-310000880266agco:AggregateFixedIncomeSecuritiesMemberus-gaap:PensionPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel1Member2022-12-310000880266us-gaap:FairValueInputsLevel2Memberagco:AggregateFixedIncomeSecuritiesMemberus-gaap:PensionPlansDefinedBenefitMember2022-12-310000880266agco:AggregateFixedIncomeSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:PensionPlansDefinedBenefitMember2022-12-310000880266us-gaap:FixedIncomeSecuritiesMemberus-gaap:PensionPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel12And3Member2022-12-310000880266us-gaap:FixedIncomeSecuritiesMemberus-gaap:PensionPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel1Member2022-12-310000880266us-gaap:FairValueInputsLevel2Memberus-gaap:FixedIncomeSecuritiesMemberus-gaap:PensionPlansDefinedBenefitMember2022-12-310000880266us-gaap:FixedIncomeSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:PensionPlansDefinedBenefitMember2022-12-310000880266us-gaap:PensionPlansDefinedBenefitMemberus-gaap:PrivateEquityFundsMemberus-gaap:FairValueInputsLevel12And3Member2022-12-310000880266us-gaap:PensionPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel1Memberus-gaap:PrivateEquityFundsMember2022-12-310000880266us-gaap:FairValueInputsLevel2Memberus-gaap:PensionPlansDefinedBenefitMemberus-gaap:PrivateEquityFundsMember2022-12-310000880266us-gaap:FairValueInputsLevel3Memberus-gaap:PensionPlansDefinedBenefitMemberus-gaap:PrivateEquityFundsMember2022-12-310000880266us-gaap:FairValueMeasuredAtNetAssetValuePerShareMemberus-gaap:HedgeFundsMemberus-gaap:PensionPlansDefinedBenefitMember2022-12-310000880266agco:AlternativeInvestmentsMemberus-gaap:PensionPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel12And3Member2022-12-310000880266agco:AlternativeInvestmentsMemberus-gaap:PensionPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel1Member2022-12-310000880266us-gaap:FairValueInputsLevel2Memberagco:AlternativeInvestmentsMemberus-gaap:PensionPlansDefinedBenefitMember2022-12-310000880266us-gaap:MiscellaneousInvestmentsMemberus-gaap:PensionPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel12And3Member2022-12-310000880266us-gaap:MiscellaneousInvestmentsMemberus-gaap:PensionPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel1Member2022-12-310000880266us-gaap:FairValueInputsLevel2Memberus-gaap:MiscellaneousInvestmentsMemberus-gaap:PensionPlansDefinedBenefitMember2022-12-310000880266us-gaap:DefinedBenefitPlanCashAndCashEquivalentsMemberus-gaap:FairValueMeasuredAtNetAssetValuePerShareMemberus-gaap:PensionPlansDefinedBenefitMember2022-12-310000880266us-gaap:PensionPlansDefinedBenefitMemberus-gaap:FairValueInputsLevel1Member2022-12-310000880266us-gaap:FairValueInputsLevel2Memberus-gaap:PensionPlansDefinedBenefitMember2022-12-310000880266us-gaap:USTreasurySecuritiesMemberus-gaap:PensionPlansDefinedBenefitMember2022-12-310000880266us-gaap:PensionPlansDefinedBenefitMemberagco:FixedIncomeSecuritiesNonUSMember2022-12-310000880266us-gaap:PensionPlansDefinedBenefitMemberus-gaap:CorporateBondSecuritiesMember2022-12-310000880266us-gaap:PensionPlansDefinedBenefitMemberagco:FixedIncomeSecuritiesHighYieldMember2022-12-310000880266agco:FixedIncomeSecuritiesOtherMemberus-gaap:PensionPlansDefinedBenefitMember2022-12-310000880266us-gaap:PensionPlansDefinedBenefitMemberagco:AlternativeInvestmentsRelativeValueFundsMember2022-12-310000880266us-gaap:PensionPlansDefinedBenefitMemberagco:AlternativeInvestmentsLongShortEquityFundsMember2022-12-310000880266us-gaap:PensionPlansDefinedBenefitMemberagco:AlternativeInvestmentsEventDrivenFundsMember2022-12-310000880266us-gaap:PensionPlansDefinedBenefitMemberagco:AlternativeInvestmentsCreditFundsMember2022-12-310000880266us-gaap:PensionPlansDefinedBenefitMemberagco:AlternativeInvestmentsHedgedAndNonHedgedFundsMember2022-12-310000880266us-gaap:FairValueInputsLevel3Memberus-gaap:PensionPlansDefinedBenefitMember2021-12-310000880266agco:AlternativeInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:PensionPlansDefinedBenefitMember2021-12-310000880266us-gaap:MiscellaneousInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:PensionPlansDefinedBenefitMember2021-12-310000880266us-gaap:FairValueInputsLevel3Memberus-gaap:PensionPlansDefinedBenefitMember2022-01-012022-12-310000880266agco:AlternativeInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:PensionPlansDefinedBenefitMember2022-01-012022-12-310000880266us-gaap:MiscellaneousInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:PensionPlansDefinedBenefitMember2022-01-012022-12-310000880266us-gaap:PensionPlansDefinedBenefitMemberus-gaap:ForeignPlanMember2023-01-012023-12-310000880266us-gaap:PensionPlansDefinedBenefitMemberus-gaap:ForeignPlanMemberus-gaap:DefinedBenefitPlanEquitySecuritiesMember2023-12-310000880266us-gaap:FixedIncomeSecuritiesMemberus-gaap:PensionPlansDefinedBenefitMemberus-gaap:ForeignPlanMember2023-12-310000880266country:USagco:AlternativeInvestmentsMemberus-gaap:PensionPlansDefinedBenefitMember2023-12-310000880266agco:AlternativeInvestmentsMemberus-gaap:PensionPlansDefinedBenefitMemberus-gaap:ForeignPlanMember2023-12-310000880266country:US2023-01-012023-12-310000880266country:GB2023-01-012023-12-310000880266us-gaap:FairValueInputsLevel1Member2023-12-310000880266us-gaap:FairValueInputsLevel2Member2023-12-310000880266us-gaap:FairValueInputsLevel3Member2023-12-310000880266us-gaap:FairValueInputsLevel1Member2022-12-310000880266us-gaap:FairValueInputsLevel2Member2022-12-310000880266us-gaap:FairValueInputsLevel3Member2022-12-310000880266agco:AGCOCapitalArgentinaSAMember2023-12-310000880266agco:USAndCanadaFinanceJointVenturesMember2023-12-310000880266us-gaap:ForeignExchangeContractMember2023-12-310000880266agco:ExtendedWarrantyContractsMaintenanceServicesAndTechnologyServicesMember2023-01-012023-12-310000880266agco:ExtendedWarrantyContractsMaintenanceServicesAndTechnologyServicesMember2022-01-012022-12-310000880266agco:GrainStorageAndProteinProductionSystemsMember2023-01-012023-12-310000880266agco:GrainStorageAndProteinProductionSystemsMember2022-01-012022-12-3100008802662024-01-012023-12-3100008802662025-01-012023-12-3100008802662026-01-012023-12-3100008802662027-01-012023-12-3100008802662028-01-012023-12-310000880266country:USagco:NorthAmericaSegmentMember2023-01-012023-12-310000880266agco:SouthAmericaSegmentMembercountry:US2023-01-012023-12-310000880266country:USagco:EMESegmentMember2023-01-012023-12-310000880266country:USagco:APASegmentMember2023-01-012023-12-310000880266country:US2023-01-012023-12-310000880266agco:NorthAmericaSegmentMembercountry:CA2023-01-012023-12-310000880266agco:SouthAmericaSegmentMembercountry:CA2023-01-012023-12-310000880266agco:EMESegmentMembercountry:CA2023-01-012023-12-310000880266country:CAagco:APASegmentMember2023-01-012023-12-310000880266country:CA2023-01-012023-12-310000880266country:DEagco:NorthAmericaSegmentMember2023-01-012023-12-310000880266agco:SouthAmericaSegmentMembercountry:DE2023-01-012023-12-310000880266country:DEagco:EMESegmentMember2023-01-012023-12-310000880266country:DEagco:APASegmentMember2023-01-012023-12-310000880266country:DE2023-01-012023-12-310000880266country:FRagco:NorthAmericaSegmentMember2023-01-012023-12-310000880266agco:SouthAmericaSegmentMembercountry:FR2023-01-012023-12-310000880266country:FRagco:EMESegmentMember2023-01-012023-12-310000880266country:FRagco:APASegmentMember2023-01-012023-12-310000880266country:FR2023-01-012023-12-310000880266agco:NorthAmericaSegmentMemberagco:UnitedKingdomAndIrelandMember2023-01-012023-12-310000880266agco:SouthAmericaSegmentMemberagco:UnitedKingdomAndIrelandMember2023-01-012023-12-310000880266agco:EMESegmentMemberagco:UnitedKingdomAndIrelandMember2023-01-012023-12-310000880266agco:UnitedKingdomAndIrelandMemberagco:APASegmentMember2023-01-012023-12-310000880266agco:UnitedKingdomAndIrelandMember2023-01-012023-12-310000880266agco:FinlandAndScandinaviaMemberagco:NorthAmericaSegmentMember2023-01-012023-12-310000880266agco:SouthAmericaSegmentMemberagco:FinlandAndScandinaviaMember2023-01-012023-12-310000880266agco:FinlandAndScandinaviaMemberagco:EMESegmentMember2023-01-012023-12-310000880266agco:FinlandAndScandinaviaMemberagco:APASegmentMember2023-01-012023-12-310000880266agco:FinlandAndScandinaviaMember2023-01-012023-12-310000880266country:ITagco:NorthAmericaSegmentMember2023-01-012023-12-310000880266agco:SouthAmericaSegmentMembercountry:IT2023-01-012023-12-310000880266country:ITagco:EMESegmentMember2023-01-012023-12-310000880266country:ITagco:APASegmentMember2023-01-012023-12-310000880266country:IT2023-01-012023-12-310000880266agco:OtherEuropeMemberagco:NorthAmericaSegmentMember2023-01-012023-12-310000880266agco:SouthAmericaSegmentMemberagco:OtherEuropeMember2023-01-012023-12-310000880266agco:OtherEuropeMemberagco:EMESegmentMember2023-01-012023-12-310000880266agco:OtherEuropeMemberagco:APASegmentMember2023-01-012023-12-310000880266agco:OtherEuropeMember2023-01-012023-12-310000880266agco:NorthAmericaSegmentMembercountry:BR2023-01-012023-12-310000880266agco:SouthAmericaSegmentMembercountry:BR2023-01-012023-12-310000880266agco:EMESegmentMembercountry:BR2023-01-012023-12-310000880266country:BRagco:APASegmentMember2023-01-012023-12-310000880266country:BR2023-01-012023-12-310000880266agco:OtherSouthAmericaMemberagco:NorthAmericaSegmentMember2023-01-012023-12-310000880266agco:SouthAmericaSegmentMemberagco:OtherSouthAmericaMember2023-01-012023-12-310000880266agco:OtherSouthAmericaMemberagco:EMESegmentMember2023-01-012023-12-310000880266agco:OtherSouthAmericaMemberagco:APASegmentMember2023-01-012023-12-310000880266agco:OtherSouthAmericaMember2023-01-012023-12-310000880266agco:NorthAmericaSegmentMemberagco:MiddleEastandAlgeriaMember2023-01-012023-12-310000880266agco:SouthAmericaSegmentMemberagco:MiddleEastandAlgeriaMember2023-01-012023-12-310000880266agco:EMESegmentMemberagco:MiddleEastandAlgeriaMember2023-01-012023-12-310000880266agco:MiddleEastandAlgeriaMemberagco:APASegmentMember2023-01-012023-12-310000880266agco:MiddleEastandAlgeriaMember2023-01-012023-12-310000880266srt:AfricaMemberagco:NorthAmericaSegmentMember2023-01-012023-12-310000880266agco:SouthAmericaSegmentMembersrt:AfricaMember2023-01-012023-12-310000880266srt:AfricaMemberagco:EMESegmentMember2023-01-012023-12-310000880266srt:AfricaMemberagco:APASegmentMember2023-01-012023-12-310000880266srt:AfricaMember2023-01-012023-12-310000880266agco:NorthAmericaSegmentMembersrt:AsiaMember2023-01-012023-12-310000880266agco:SouthAmericaSegmentMembersrt:AsiaMember2023-01-012023-12-310000880266agco:EMESegmentMembersrt:AsiaMember2023-01-012023-12-310000880266srt:AsiaMemberagco:APASegmentMember2023-01-012023-12-310000880266srt:AsiaMember2023-01-012023-12-310000880266agco:NorthAmericaSegmentMemberagco:AustraliaAndNewZealandMember2023-01-012023-12-310000880266agco:SouthAmericaSegmentMemberagco:AustraliaAndNewZealandMember2023-01-012023-12-310000880266agco:EMESegmentMemberagco:AustraliaAndNewZealandMember2023-01-012023-12-310000880266agco:AustraliaAndNewZealandMemberagco:APASegmentMember2023-01-012023-12-310000880266agco:AustraliaAndNewZealandMember2023-01-012023-12-310000880266agco:MexicoCentralAmericaAndCaribbeanMemberagco:NorthAmericaSegmentMember2023-01-012023-12-310000880266agco:SouthAmericaSegmentMemberagco:MexicoCentralAmericaAndCaribbeanMember2023-01-012023-12-310000880266agco:MexicoCentralAmericaAndCaribbeanMemberagco:EMESegmentMember2023-01-012023-12-310000880266agco:MexicoCentralAmericaAndCaribbeanMemberagco:APASegmentMember2023-01-012023-12-310000880266agco:MexicoCentralAmericaAndCaribbeanMember2023-01-012023-12-310000880266agco:NorthAmericaSegmentMember2023-01-012023-12-310000880266agco:SouthAmericaSegmentMember2023-01-012023-12-310000880266agco:EMESegmentMember2023-01-012023-12-310000880266agco:APASegmentMember2023-01-012023-12-310000880266agco:TractorsMemberagco:NorthAmericaSegmentMember2023-01-012023-12-310000880266agco:SouthAmericaSegmentMemberagco:TractorsMember2023-01-012023-12-310000880266agco:TractorsMemberagco:EMESegmentMember2023-01-012023-12-310000880266agco:TractorsMemberagco:APASegmentMember2023-01-012023-12-310000880266agco:TractorsMember2023-01-012023-12-310000880266agco:ReplacementPartSalesMemberagco:NorthAmericaSegmentMember2023-01-012023-12-310000880266agco:SouthAmericaSegmentMemberagco:ReplacementPartSalesMember2023-01-012023-12-310000880266agco:ReplacementPartSalesMemberagco:EMESegmentMember2023-01-012023-12-310000880266agco:ReplacementPartSalesMemberagco:APASegmentMember2023-01-012023-12-310000880266agco:ReplacementPartSalesMember2023-01-012023-12-310000880266agco:GrainStorageAndProteinProductionSystemsMemberagco:NorthAmericaSegmentMember2023-01-012023-12-310000880266agco:SouthAmericaSegmentMemberagco:GrainStorageAndProteinProductionSystemsMember2023-01-012023-12-310000880266agco:GrainStorageAndProteinProductionSystemsMemberagco:EMESegmentMember2023-01-012023-12-310000880266agco:GrainStorageAndProteinProductionSystemsMemberagco:APASegmentMember2023-01-012023-12-310000880266agco:OtherMachineryProductLineMemberagco:NorthAmericaSegmentMember2023-01-012023-12-310000880266agco:SouthAmericaSegmentMemberagco:OtherMachineryProductLineMember2023-01-012023-12-310000880266agco:OtherMachineryProductLineMemberagco:EMESegmentMember2023-01-012023-12-310000880266agco:OtherMachineryProductLineMemberagco:APASegmentMember2023-01-012023-12-310000880266agco:OtherMachineryProductLineMember2023-01-012023-12-310000880266country:USagco:NorthAmericaSegmentMember2022-01-012022-12-310000880266agco:SouthAmericaSegmentMembercountry:US2022-01-012022-12-310000880266country:USagco:EMESegmentMember2022-01-012022-12-310000880266country:USagco:APASegmentMember2022-01-012022-12-310000880266country:US2022-01-012022-12-310000880266agco:NorthAmericaSegmentMembercountry:CA2022-01-012022-12-310000880266agco:SouthAmericaSegmentMembercountry:CA2022-01-012022-12-310000880266agco:EMESegmentMembercountry:CA2022-01-012022-12-310000880266country:CAagco:APASegmentMember2022-01-012022-12-310000880266country:CA2022-01-012022-12-310000880266country:DEagco:NorthAmericaSegmentMember2022-01-012022-12-310000880266agco:SouthAmericaSegmentMembercountry:DE2022-01-012022-12-310000880266country:DEagco:EMESegmentMember2022-01-012022-12-310000880266country:DEagco:APASegmentMember2022-01-012022-12-310000880266country:DE2022-01-012022-12-310000880266country:FRagco:NorthAmericaSegmentMember2022-01-012022-12-310000880266agco:SouthAmericaSegmentMembercountry:FR2022-01-012022-12-310000880266country:FRagco:EMESegmentMember2022-01-012022-12-310000880266country:FRagco:APASegmentMember2022-01-012022-12-310000880266country:FR2022-01-012022-12-310000880266agco:NorthAmericaSegmentMemberagco:UnitedKingdomAndIrelandMember2022-01-012022-12-310000880266agco:SouthAmericaSegmentMemberagco:UnitedKingdomAndIrelandMember2022-01-012022-12-310000880266agco:EMESegmentMemberagco:UnitedKingdomAndIrelandMember2022-01-012022-12-310000880266agco:UnitedKingdomAndIrelandMemberagco:APASegmentMember2022-01-012022-12-310000880266agco:UnitedKingdomAndIrelandMember2022-01-012022-12-310000880266agco:FinlandAndScandinaviaMemberagco:NorthAmericaSegmentMember2022-01-012022-12-310000880266agco:SouthAmericaSegmentMemberagco:FinlandAndScandinaviaMember2022-01-012022-12-310000880266agco:FinlandAndScandinaviaMemberagco:EMESegmentMember2022-01-012022-12-310000880266agco:FinlandAndScandinaviaMemberagco:APASegmentMember2022-01-012022-12-310000880266agco:FinlandAndScandinaviaMember2022-01-012022-12-310000880266country:ITagco:NorthAmericaSegmentMember2022-01-012022-12-310000880266agco:SouthAmericaSegmentMembercountry:IT2022-01-012022-12-310000880266country:ITagco:EMESegmentMember2022-01-012022-12-310000880266country:ITagco:APASegmentMember2022-01-012022-12-310000880266country:IT2022-01-012022-12-310000880266agco:OtherEuropeMemberagco:NorthAmericaSegmentMember2022-01-012022-12-310000880266agco:SouthAmericaSegmentMemberagco:OtherEuropeMember2022-01-012022-12-310000880266agco:OtherEuropeMemberagco:EMESegmentMember2022-01-012022-12-310000880266agco:OtherEuropeMemberagco:APASegmentMember2022-01-012022-12-310000880266agco:OtherEuropeMember2022-01-012022-12-310000880266agco:NorthAmericaSegmentMembercountry:BR2022-01-012022-12-310000880266agco:SouthAmericaSegmentMembercountry:BR2022-01-012022-12-310000880266agco:EMESegmentMembercountry:BR2022-01-012022-12-310000880266country:BRagco:APASegmentMember2022-01-012022-12-310000880266country:BR2022-01-012022-12-310000880266agco:OtherSouthAmericaMemberagco:NorthAmericaSegmentMember2022-01-012022-12-310000880266agco:SouthAmericaSegmentMemberagco:OtherSouthAmericaMember2022-01-012022-12-310000880266agco:OtherSouthAmericaMemberagco:EMESegmentMember2022-01-012022-12-310000880266agco:OtherSouthAmericaMemberagco:APASegmentMember2022-01-012022-12-310000880266agco:OtherSouthAmericaMember2022-01-012022-12-310000880266agco:NorthAmericaSegmentMemberagco:MiddleEastandAlgeriaMember2022-01-012022-12-310000880266agco:SouthAmericaSegmentMemberagco:MiddleEastandAlgeriaMember2022-01-012022-12-310000880266agco:EMESegmentMemberagco:MiddleEastandAlgeriaMember2022-01-012022-12-310000880266agco:MiddleEastandAlgeriaMemberagco:APASegmentMember2022-01-012022-12-310000880266agco:MiddleEastandAlgeriaMember2022-01-012022-12-310000880266srt:AfricaMemberagco:NorthAmericaSegmentMember2022-01-012022-12-310000880266agco:SouthAmericaSegmentMembersrt:AfricaMember2022-01-012022-12-310000880266srt:AfricaMemberagco:EMESegmentMember2022-01-012022-12-310000880266srt:AfricaMemberagco:APASegmentMember2022-01-012022-12-310000880266srt:AfricaMember2022-01-012022-12-310000880266agco:NorthAmericaSegmentMembersrt:AsiaMember2022-01-012022-12-310000880266agco:SouthAmericaSegmentMembersrt:AsiaMember2022-01-012022-12-310000880266agco:EMESegmentMembersrt:AsiaMember2022-01-012022-12-310000880266srt:AsiaMemberagco:APASegmentMember2022-01-012022-12-310000880266srt:AsiaMember2022-01-012022-12-310000880266agco:NorthAmericaSegmentMemberagco:AustraliaAndNewZealandMember2022-01-012022-12-310000880266agco:SouthAmericaSegmentMemberagco:AustraliaAndNewZealandMember2022-01-012022-12-310000880266agco:EMESegmentMemberagco:AustraliaAndNewZealandMember2022-01-012022-12-310000880266agco:AustraliaAndNewZealandMemberagco:APASegmentMember2022-01-012022-12-310000880266agco:AustraliaAndNewZealandMember2022-01-012022-12-310000880266agco:MexicoCentralAmericaAndCaribbeanMemberagco:NorthAmericaSegmentMember2022-01-012022-12-310000880266agco:SouthAmericaSegmentMemberagco:MexicoCentralAmericaAndCaribbeanMember2022-01-012022-12-310000880266agco:MexicoCentralAmericaAndCaribbeanMemberagco:EMESegmentMember2022-01-012022-12-310000880266agco:MexicoCentralAmericaAndCaribbeanMemberagco:APASegmentMember2022-01-012022-12-310000880266agco:MexicoCentralAmericaAndCaribbeanMember2022-01-012022-12-310000880266agco:NorthAmericaSegmentMember2022-01-012022-12-310000880266agco:SouthAmericaSegmentMember2022-01-012022-12-310000880266agco:EMESegmentMember2022-01-012022-12-310000880266agco:APASegmentMember2022-01-012022-12-310000880266agco:TractorsMemberagco:NorthAmericaSegmentMember2022-01-012022-12-310000880266agco:SouthAmericaSegmentMemberagco:TractorsMember2022-01-012022-12-310000880266agco:TractorsMemberagco:EMESegmentMember2022-01-012022-12-310000880266agco:TractorsMemberagco:APASegmentMember2022-01-012022-12-310000880266agco:TractorsMember2022-01-012022-12-310000880266agco:ReplacementPartSalesMemberagco:NorthAmericaSegmentMember2022-01-012022-12-310000880266agco:SouthAmericaSegmentMemberagco:ReplacementPartSalesMember2022-01-012022-12-310000880266agco:ReplacementPartSalesMemberagco:EMESegmentMember2022-01-012022-12-310000880266agco:ReplacementPartSalesMemberagco:APASegmentMember2022-01-012022-12-310000880266agco:ReplacementPartSalesMember2022-01-012022-12-310000880266agco:GrainStorageAndProteinProductionSystemsMemberagco:NorthAmericaSegmentMember2022-01-012022-12-310000880266agco:SouthAmericaSegmentMemberagco:GrainStorageAndProteinProductionSystemsMember2022-01-012022-12-310000880266agco:GrainStorageAndProteinProductionSystemsMemberagco:EMESegmentMember2022-01-012022-12-310000880266agco:GrainStorageAndProteinProductionSystemsMemberagco:APASegmentMember2022-01-012022-12-310000880266agco:OtherMachineryProductLineMemberagco:NorthAmericaSegmentMember2022-01-012022-12-310000880266agco:SouthAmericaSegmentMemberagco:OtherMachineryProductLineMember2022-01-012022-12-310000880266agco:OtherMachineryProductLineMemberagco:EMESegmentMember2022-01-012022-12-310000880266agco:OtherMachineryProductLineMemberagco:APASegmentMember2022-01-012022-12-310000880266agco:OtherMachineryProductLineMember2022-01-012022-12-310000880266country:USagco:NorthAmericaSegmentMember2021-01-012021-12-310000880266agco:SouthAmericaSegmentMembercountry:US2021-01-012021-12-310000880266country:USagco:EMESegmentMember2021-01-012021-12-310000880266country:USagco:APASegmentMember2021-01-012021-12-310000880266country:US2021-01-012021-12-310000880266agco:NorthAmericaSegmentMembercountry:CA2021-01-012021-12-310000880266agco:SouthAmericaSegmentMembercountry:CA2021-01-012021-12-310000880266agco:EMESegmentMembercountry:CA2021-01-012021-12-310000880266country:CAagco:APASegmentMember2021-01-012021-12-310000880266country:CA2021-01-012021-12-310000880266country:DEagco:NorthAmericaSegmentMember2021-01-012021-12-310000880266agco:SouthAmericaSegmentMembercountry:DE2021-01-012021-12-310000880266country:DEagco:EMESegmentMember2021-01-012021-12-310000880266country:DEagco:APASegmentMember2021-01-012021-12-310000880266country:DE2021-01-012021-12-310000880266country:FRagco:NorthAmericaSegmentMember2021-01-012021-12-310000880266agco:SouthAmericaSegmentMembercountry:FR2021-01-012021-12-310000880266country:FRagco:EMESegmentMember2021-01-012021-12-310000880266country:FRagco:APASegmentMember2021-01-012021-12-310000880266country:FR2021-01-012021-12-310000880266agco:NorthAmericaSegmentMemberagco:UnitedKingdomAndIrelandMember2021-01-012021-12-310000880266agco:SouthAmericaSegmentMemberagco:UnitedKingdomAndIrelandMember2021-01-012021-12-310000880266agco:EMESegmentMemberagco:UnitedKingdomAndIrelandMember2021-01-012021-12-310000880266agco:UnitedKingdomAndIrelandMemberagco:APASegmentMember2021-01-012021-12-310000880266agco:UnitedKingdomAndIrelandMember2021-01-012021-12-310000880266agco:FinlandAndScandinaviaMemberagco:NorthAmericaSegmentMember2021-01-012021-12-310000880266agco:SouthAmericaSegmentMemberagco:FinlandAndScandinaviaMember2021-01-012021-12-310000880266agco:FinlandAndScandinaviaMemberagco:EMESegmentMember2021-01-012021-12-310000880266agco:FinlandAndScandinaviaMemberagco:APASegmentMember2021-01-012021-12-310000880266agco:FinlandAndScandinaviaMember2021-01-012021-12-310000880266country:ITagco:NorthAmericaSegmentMember2021-01-012021-12-310000880266agco:SouthAmericaSegmentMembercountry:IT2021-01-012021-12-310000880266country:ITagco:EMESegmentMember2021-01-012021-12-310000880266country:ITagco:APASegmentMember2021-01-012021-12-310000880266country:IT2021-01-012021-12-310000880266agco:OtherEuropeMemberagco:NorthAmericaSegmentMember2021-01-012021-12-310000880266agco:SouthAmericaSegmentMemberagco:OtherEuropeMember2021-01-012021-12-310000880266agco:OtherEuropeMemberagco:EMESegmentMember2021-01-012021-12-310000880266agco:OtherEuropeMemberagco:APASegmentMember2021-01-012021-12-310000880266agco:OtherEuropeMember2021-01-012021-12-310000880266agco:NorthAmericaSegmentMembercountry:BR2021-01-012021-12-310000880266agco:SouthAmericaSegmentMembercountry:BR2021-01-012021-12-310000880266agco:EMESegmentMembercountry:BR2021-01-012021-12-310000880266country:BRagco:APASegmentMember2021-01-012021-12-310000880266country:BR2021-01-012021-12-310000880266agco:OtherSouthAmericaMemberagco:NorthAmericaSegmentMember2021-01-012021-12-310000880266agco:SouthAmericaSegmentMemberagco:OtherSouthAmericaMember2021-01-012021-12-310000880266agco:OtherSouthAmericaMemberagco:EMESegmentMember2021-01-012021-12-310000880266agco:OtherSouthAmericaMemberagco:APASegmentMember2021-01-012021-12-310000880266agco:OtherSouthAmericaMember2021-01-012021-12-310000880266agco:NorthAmericaSegmentMemberagco:MiddleEastandAlgeriaMember2021-01-012021-12-310000880266agco:SouthAmericaSegmentMemberagco:MiddleEastandAlgeriaMember2021-01-012021-12-310000880266agco:EMESegmentMemberagco:MiddleEastandAlgeriaMember2021-01-012021-12-310000880266agco:MiddleEastandAlgeriaMemberagco:APASegmentMember2021-01-012021-12-310000880266agco:MiddleEastandAlgeriaMember2021-01-012021-12-310000880266srt:AfricaMemberagco:NorthAmericaSegmentMember2021-01-012021-12-310000880266agco:SouthAmericaSegmentMembersrt:AfricaMember2021-01-012021-12-310000880266srt:AfricaMemberagco:EMESegmentMember2021-01-012021-12-310000880266srt:AfricaMemberagco:APASegmentMember2021-01-012021-12-310000880266srt:AfricaMember2021-01-012021-12-310000880266agco:NorthAmericaSegmentMembersrt:AsiaMember2021-01-012021-12-310000880266agco:SouthAmericaSegmentMembersrt:AsiaMember2021-01-012021-12-310000880266agco:EMESegmentMembersrt:AsiaMember2021-01-012021-12-310000880266srt:AsiaMemberagco:APASegmentMember2021-01-012021-12-310000880266srt:AsiaMember2021-01-012021-12-310000880266agco:NorthAmericaSegmentMemberagco:AustraliaAndNewZealandMember2021-01-012021-12-310000880266agco:SouthAmericaSegmentMemberagco:AustraliaAndNewZealandMember2021-01-012021-12-310000880266agco:EMESegmentMemberagco:AustraliaAndNewZealandMember2021-01-012021-12-310000880266agco:AustraliaAndNewZealandMemberagco:APASegmentMember2021-01-012021-12-310000880266agco:AustraliaAndNewZealandMember2021-01-012021-12-310000880266agco:MexicoCentralAmericaAndCaribbeanMemberagco:NorthAmericaSegmentMember2021-01-012021-12-310000880266agco:SouthAmericaSegmentMemberagco:MexicoCentralAmericaAndCaribbeanMember2021-01-012021-12-310000880266agco:MexicoCentralAmericaAndCaribbeanMemberagco:EMESegmentMember2021-01-012021-12-310000880266agco:MexicoCentralAmericaAndCaribbeanMemberagco:APASegmentMember2021-01-012021-12-310000880266agco:MexicoCentralAmericaAndCaribbeanMember2021-01-012021-12-310000880266agco:NorthAmericaSegmentMember2021-01-012021-12-310000880266agco:SouthAmericaSegmentMember2021-01-012021-12-310000880266agco:EMESegmentMember2021-01-012021-12-310000880266agco:APASegmentMember2021-01-012021-12-310000880266agco:TractorsMemberagco:NorthAmericaSegmentMember2021-01-012021-12-310000880266agco:SouthAmericaSegmentMemberagco:TractorsMember2021-01-012021-12-310000880266agco:TractorsMemberagco:EMESegmentMember2021-01-012021-12-310000880266agco:TractorsMemberagco:APASegmentMember2021-01-012021-12-310000880266agco:TractorsMember2021-01-012021-12-310000880266agco:ReplacementPartSalesMemberagco:NorthAmericaSegmentMember2021-01-012021-12-310000880266agco:SouthAmericaSegmentMemberagco:ReplacementPartSalesMember2021-01-012021-12-310000880266agco:ReplacementPartSalesMemberagco:EMESegmentMember2021-01-012021-12-310000880266agco:ReplacementPartSalesMemberagco:APASegmentMember2021-01-012021-12-310000880266agco:ReplacementPartSalesMember2021-01-012021-12-310000880266agco:GrainStorageAndProteinProductionSystemsMemberagco:NorthAmericaSegmentMember2021-01-012021-12-310000880266agco:SouthAmericaSegmentMemberagco:GrainStorageAndProteinProductionSystemsMember2021-01-012021-12-310000880266agco:GrainStorageAndProteinProductionSystemsMemberagco:EMESegmentMember2021-01-012021-12-310000880266agco:GrainStorageAndProteinProductionSystemsMemberagco:APASegmentMember2021-01-012021-12-310000880266agco:GrainStorageAndProteinProductionSystemsMember2021-01-012021-12-310000880266agco:OtherMachineryProductLineMemberagco:NorthAmericaSegmentMember2021-01-012021-12-310000880266agco:SouthAmericaSegmentMemberagco:OtherMachineryProductLineMember2021-01-012021-12-310000880266agco:OtherMachineryProductLineMemberagco:EMESegmentMember2021-01-012021-12-310000880266agco:OtherMachineryProductLineMemberagco:APASegmentMember2021-01-012021-12-310000880266agco:OtherMachineryProductLineMember2021-01-012021-12-31agco:segment0000880266us-gaap:OperatingSegmentsMemberagco:NorthAmericaSegmentMember2023-01-012023-12-310000880266agco:SouthAmericaSegmentMemberus-gaap:OperatingSegmentsMember2023-01-012023-12-310000880266us-gaap:OperatingSegmentsMemberagco:EMESegmentMember2023-01-012023-12-310000880266us-gaap:OperatingSegmentsMemberagco:APASegmentMember2023-01-012023-12-310000880266us-gaap:OperatingSegmentsMember2023-01-012023-12-310000880266us-gaap:OperatingSegmentsMemberagco:NorthAmericaSegmentMember2023-12-310000880266agco:SouthAmericaSegmentMemberus-gaap:OperatingSegmentsMember2023-12-310000880266us-gaap:OperatingSegmentsMemberagco:EMESegmentMember2023-12-310000880266us-gaap:OperatingSegmentsMemberagco:APASegmentMember2023-12-310000880266us-gaap:OperatingSegmentsMember2023-12-310000880266us-gaap:OperatingSegmentsMemberagco:NorthAmericaSegmentMember2022-01-012022-12-310000880266agco:SouthAmericaSegmentMemberus-gaap:OperatingSegmentsMember2022-01-012022-12-310000880266us-gaap:OperatingSegmentsMemberagco:EMESegmentMember2022-01-012022-12-310000880266us-gaap:OperatingSegmentsMemberagco:APASegmentMember2022-01-012022-12-310000880266us-gaap:OperatingSegmentsMember2022-01-012022-12-310000880266us-gaap:OperatingSegmentsMemberagco:NorthAmericaSegmentMember2022-12-310000880266agco:SouthAmericaSegmentMemberus-gaap:OperatingSegmentsMember2022-12-310000880266us-gaap:OperatingSegmentsMemberagco:EMESegmentMember2022-12-310000880266us-gaap:OperatingSegmentsMemberagco:APASegmentMember2022-12-310000880266us-gaap:OperatingSegmentsMember2022-12-310000880266us-gaap:OperatingSegmentsMemberagco:NorthAmericaSegmentMember2021-01-012021-12-310000880266agco:SouthAmericaSegmentMemberus-gaap:OperatingSegmentsMember2021-01-012021-12-310000880266us-gaap:OperatingSegmentsMemberagco:EMESegmentMember2021-01-012021-12-310000880266us-gaap:OperatingSegmentsMemberagco:APASegmentMember2021-01-012021-12-310000880266us-gaap:OperatingSegmentsMember2021-01-012021-12-310000880266us-gaap:OperatingSegmentsMemberagco:NorthAmericaSegmentMember2021-12-310000880266agco:SouthAmericaSegmentMemberus-gaap:OperatingSegmentsMember2021-12-310000880266us-gaap:OperatingSegmentsMemberagco:EMESegmentMember2021-12-310000880266us-gaap:OperatingSegmentsMemberagco:APASegmentMember2021-12-310000880266us-gaap:OperatingSegmentsMember2021-12-310000880266us-gaap:MaterialReconcilingItemsMember2023-01-012023-12-310000880266us-gaap:MaterialReconcilingItemsMember2022-01-012022-12-310000880266us-gaap:MaterialReconcilingItemsMember2021-01-012021-12-310000880266us-gaap:MaterialReconcilingItemsMember2023-12-310000880266us-gaap:MaterialReconcilingItemsMember2022-12-310000880266us-gaap:MaterialReconcilingItemsMember2021-12-310000880266country:US2023-12-310000880266country:US2022-12-310000880266country:DE2023-12-310000880266country:DE2022-12-310000880266country:BR2023-12-310000880266country:BR2022-12-310000880266country:FI2023-12-310000880266country:FI2022-12-310000880266country:FR2023-12-310000880266country:FR2022-12-310000880266country:IT2023-12-310000880266country:IT2022-12-310000880266country:CN2023-12-310000880266country:CN2022-12-310000880266country:DK2023-12-310000880266country:DK2022-12-310000880266agco:OtherCountriesMember2023-12-310000880266agco:OtherCountriesMember2022-12-31
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2023
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,Georgia30096
(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 ClassTrading SymbolName of exchange on which registered
Common stockAGCONew York Stock Exchange
Indicate by check mark if the registrant is a well-known seasoned issuer as defined in Rule 405 of the Securities Act. Yes No o
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes No
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. Yes No o
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). Yes No o
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. (Check one):
Large accelerated fileroAccelerated fileroNon-accelerated filerSmaller reporting companyEmerging 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. o
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. o
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to § 240.10D-1(b). o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No ☒
The aggregate market value of AGCO Corporation’s Common Stock (based upon the closing sales price quoted on the New York Stock Exchange) held by non-affiliates as of June 30, 2023 was approximately $8.2 billion. For this purpose, directors and officers and the entities that they control have been assumed to be affiliates. As of February 20, 2024, 74,617,874 shares of AGCO Corporation’s Common Stock were outstanding.
Documents Incorporated by Reference
Portions of AGCO Corporation’s Proxy Statement for the 2024 Annual Meeting of Stockholders are incorporated by reference into Part III of this Form 10-K.


TABLE OF CONTENTS



PART I

Item 1.        Business

    AGCO Corporation was incorporated in Delaware in 1991. Unless otherwise indicated, all references in this Form 10-K to “AGCO,” “we,” “us” or the “Company” include AGCO Corporation and its subsidiaries.

General

    We are a global leader in the design, manufacture and distribution of agricultural machinery and precision agriculture technology. Our purpose is to provide farmer-focused solutions to sustainably feed our world. We sell a full range of agricultural equipment, including tractors, combines, self-propelled sprayers, hay tools, forage equipment, seeding and tillage equipment, implements, and grain storage and protein production systems. Our products are widely recognized in the agricultural equipment industry and are marketed under a number of well-known brands, including Fendt®, GSI®, Massey Ferguson®, Precision Planting® and Valtra®, supported by our FUSE® precision agriculture solutions. We distribute most of our products through approximately 3,100 independent dealers and distributors in approximately 140 countries. We also provide retail and wholesale financing through our finance joint ventures with Coöperatieve Rabobank U.A., which, together with its affiliates, we refer to as “Rabobank.”

    On September 28, 2023, the Company entered into a Sale and Contribution Agreement with Trimble Inc. ("Trimble") to form a joint venture ("Trimble Ag joint venture") (i) to which Trimble will contribute its agricultural business (other than certain Global Navigation Satellite System and guidance technologies) and AGCO will contribute JCA Technologies, and (ii) AGCO will acquire an 85% interest in the joint venture for cash consideration of $2.0 billion. We believe the joint venture will create a global-leading mixed-fleet precision ag platform. We will be the exclusive provider of Trimble’s comprehensive technology offering, supporting the future development and distribution of next-generation agriculture technologies. Trimble offers a wide variety of user-friendly technologies compatible across brands, equipment models and farm types. Its hardware, software and cloud-based applications span all aspects of the crop cycle, from land preparation to planting and seeding to harvest. We expect the transaction to close during the first half of 2024. The closing is subject to customary conditions, including compliance with antitrust and similar laws. See Note 2 of our Consolidated Financial Statements contained in Item 8, "Financial Statements and Supplementary Data," for further information.

1

Products

    The following table sets forth a description of the Company’s more significant products and their percentage of net sales:
Percentage of Net Sales(1)
ProductProduct Description
2023
2022
2021
TractorsHigh horsepower tractors (140 to 650 horsepower); typically used on large acreage farms, primarily for row crop production, soil cultivation, planting, land leveling, seeding and commercial hay operations61 %59 %57 %
Utility tractors (40 to 130 horsepower); typically used on small and medium sized farms and in specialty agricultural industries, including dairy, livestock, orchards and vineyards
Compact tractors (under 40 horsepower); typically used on small farms and specialty agricultural industries, as well as for landscaping, equestrian and residential uses
CombinesCombines, sold with a variety of threshing technologies and complemented by a variety of crop-harvesting heads; typically used in harvesting grain crops such as corn, wheat, soybeans and rice%%%
Hay Tools and Forage Equipment, Planters, Implements & Other EquipmentRound and rectangular balers, loader wagons, self-propelled windrowers, forage harvesters, disc mowers, spreaders, rakes, tedders, and mower conditioners; used for the harvesting and packaging of vegetative feeds used in the cattle, dairy, horse and renewable fuel industries12 %12 %12 %
Planters and other planting equipment (including retrofit equipment); used to plant seeds and apply fertilizer in the field, typically used for row crops, including planting technologies that cover the areas of monitoring and measurement, liquid control and delivery, meter accuracy and seed delivery
Implements, including disc harrows, which cut through crop residue, leveling seed beds and mixing chemicals with the soils; heavy tillage, which break up soil and mix crop residue into topsoil, with or without prior discing; field cultivators, which prepare a smooth seed bed and destroy weeds; and drills, which are primarily used for small grain seeding
Other equipment, including loaders; used for a variety of tasks, including lifting and transporting hay crops
Application Equipment
Self-propelled, three and four wheeled vehicles and related equipment; for use in the application of liquid and dry fertilizers and crop protection chemicals both prior to planting crops (“pre-emergence”) and after crops emerge from the ground (“post-emergence”)
%%%
Replacement Parts
Replacement parts for all of the products we sell, including products no longer in production. Most of our products can be economically maintained with parts and service for a period of 10 to 20 years. Our parts inventories are maintained and distributed through a network of master and regional warehouses throughout North America, South America, Europe, Africa, China and Australia in order to provide timely response to customer demand for replacement parts
13 %13 %15 %
Grain Storage and Protein Production SystemsGrain storage bins and related drying and handling equipment systems; seed-processing systems; swine and poultry feed storage and delivery, ventilation and watering systems; egg production systems, and broiler production equipment%%10 %
____________________________________
(1) The summation of these individual percentages may not total due to rounding.

Precision Agriculture

    We offer solutions to farmers to optimize performance, while improving ease of use. These solutions are reflected in the table above. We provide telemetry-based fleet management tools, including remote monitoring and diagnostics, which help farmers improve uptime, machine and yield optimization, mixed fleet optimization and decision support, with critical data privacy choices and convenient mobile tools that offer access to data and information. These products ultimately result in improved yields or reduced waste as well as increased profitability for farmers to help enable sustainable farming. In addition, our precision agriculture solutions are based on connectivity, automation and digitalization and include satellite-based steering, field data collection, product self-adjustment and yield-mapping. Our Precision Planting®, Headsight® and Intelligent Ag Solutions brands provide retrofit solutions to upgrade farmers’ existing equipment to improve their planting, liquid application and harvest operations, resulting in yield and cost optimization. Our Precision Planting®, Headsight®, JCA and Intelligent Ag Solutions brands also sell precision agriculture solutions around the crop cycle to third-party original equipment manufacturers (“OEMs”). Our Fuse® and other precision agriculture solutions support our products, brands and the aftermarket with a comprehensive and customizable suite of solutions, enabling farmers to make individual, data-based decisions in order to reduce costs and maximize efficiency, yields and profitability. These technologies are developed internally or sourced from third parties and integrated into our products. We believe that these products and related devices are highly valued by farmers globally and are integral to the current and future growth of our equipment sales and revenues. The planned Trimble Ag joint venture will complement and enhance AGCO’s existing precision agriculture portfolio to deliver even more industry leading solutions across the crop cycle. The Trimble Ag joint venture will allow us to have over 500,000 connectable machines. By
2

combining these two precision agriculture portfolios, we will be positioned to drive outsized growth and better provide next-generation technologies to even more farmers around the world.

Market Conditions

    Demand for agricultural equipment is cyclical, influenced by, among other things, farm income, farm land values and debt levels, financing costs, acreage planted, crop yields, weather conditions, the demand for agricultural commodities, commodity and protein prices, agricultural product demand and general economic conditions and government policies and subsidies. Geopolitical factors, including inflation and regional conflicts, continue to create volatility in the global economy, including the potential for energy shortages, employment disruptions, supply chain constraints and delays in deliveries, as well as logistics interruptions. Farmer input costs have moderated from levels experienced during 2022, and easing supply chain constraints in 2023 enabled industry production to meet market demand. Elevated agricultural commodity prices in 2022 and 2023 have supported favorable farm economics resulting in farmers upgrading and replacing aging fleets. However, agricultural commodity prices began to moderate in the second half of 2023, and we expect lower farm income and lower commodity prices in 2024. The future demand for agricultural equipment will be influenced by the factors noted above.

In response to market and business conditions, management continues to evaluate strategic alternatives for its grain and protein systems business. Strategic alternatives being considered include divestiture, partnerships or other arrangements with third parties or retaining the business.

2023 Compared to 2022 Financial Highlights

    Net income for 2023 was $1,171.4 million, or $15.63 per diluted share, compared to $889.6 million, or $11.87 per diluted share for 2022.

    Net sales for 2023 were $14,412.4 million, or 13.9% higher than 2022, primarily due to favorable pricing impacts, improved product mix and favorable currency impacts. Income from operations was $1,700.4 million in 2023 compared to $1,265.4 million in 2022. The increase in income from operations in 2023 was primarily the result of positive net pricing and favorable product mix, partially offset by higher selling, general, and administrative expenses and engineering expenses. See “Financial Highlights” under Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” for additional information.

Competition

    The agricultural industry is highly competitive. We compete with several large national and international full-line suppliers, as well as numerous short-line and specialty manufacturers with differing manufacturing and marketing methods. Our two principal competitors on a worldwide basis are Deere & Company and CNH Industrial N.V. We have regional competitors around the world that have significant market share in a single country or a group of countries. Additionally, the industry is attracting technology-focused companies and start-up ventures as technology increasingly impacts all aspects of the crop cycle.

    We believe several key factors influence a buyer’s choice of farm equipment, including the strength and quality of a company’s dealers, the quality and pricing of products, dealer or brand loyalty, product availability, terms of financing and customer service. See “Marketing and Distribution” for additional information.

Marketing and Distribution

Dealers and Distributors

    We distribute products primarily through a network of independent dealers and distributors. Our dealers are responsible for retail sales of equipment to end users and after-sales service and support. Our distributors may sell our product through networks of dealers supported by the distributors, and our distributors also may directly market our products and provide customer service support. Our sales are not dependent on any specific dealer, distributor or group of dealers. In some countries, we utilize associates and licensees to provide a distribution channel for our products and a source of low-cost production for certain products.
3

Independent Dealers and Distributors
Percent of Net Sales(1)
Geographical Region2023202320222021
Europe69049 %49 %54 %
North America1,79526 %25 %24 %
South America22016 %17 %12 %
Rest of World (2)
395%%10 %
____________________________________
(1) The summation of these individual percentages may not total due to rounding.
(2) Consists of approximately 60 countries in Africa, the Middle East, Australia and Asia.

Dealer Support and Supervision

    We believe that one of the most important criteria affecting a farmer’s decision to purchase a particular brand of equipment is the quality of the dealer who sells and services the equipment. We support our dealers in order to improve the quality of our dealer network. We monitor each dealer’s performance and profitability and establish programs that focus on continuous dealer improvement. Our dealers generally have sales territories for which they are responsible.

    We believe that our ability to offer our dealers a full product line of agricultural machines and precision agriculture technology, as well as our digital tools to support the dealer’s sales, marketing, warranty and servicing efforts, helps ensure the vitality and increases the competitiveness of our dealer network. We also maintain dealer advisory groups to obtain dealer feedback on our operations.

    We provide our dealers with volume sales incentives, demonstration programs and other advertising support to assist sales. We design our sales programs, including retail financing incentives, and our policies for maintaining parts and service availability with extensive product warranties to enhance our dealers’ competitive position.

Resources

Manufacturing and Assembly

    We manufacture and assemble our products in 44 locations worldwide, including four locations where we operate joint ventures. Our locations are intended to optimize capacity, technology and local costs. We balance our manufacturing resources with externally-sourced machinery, components and/or replacement parts to enable us to better control costs, inventory levels and our supply of components. We believe that our manufacturing facilities are sufficient to meet our needs for the foreseeable future. Refer to Item 2, “Properties,” for a listing of our principal manufacturing locations.

    Our AGCO Power division produces diesel engines, gears and generating sets. The diesel engines are manufactured for use in a majority of our tractors, combines and sprayers, and also are sold to third parties. AGCO Power specializes in the manufacturing of off-road engines in the 75 to 500 horsepower range.

Components and Third-Party Suppliers

    We externally source some of our machinery, components and replacement parts from third-party suppliers. Our production strategy is intended to optimize our research and development and capital investment requirements and to allow us greater flexibility to respond to changes in market conditions.

    We purchase some fully manufactured tractors from Tractors and Farm Equipment Limited (“TAFE”), Carraro S.p.A. and Iseki & Company, Limited. We also purchase other tractors, implements and hay and forage equipment from various third-party suppliers. Refer to Note 18 of our Consolidated Financial Statements contained in Item 8, “Financial Statements and Supplementary Data,” for further discussion of our relationship with TAFE.

    In addition to the purchase of machinery, third-party suppliers supply us with significant components used in our manufacturing operations. We select third-party suppliers that we believe are low cost and high quality and possess the most appropriate technology.

4

    We also assist in the development of these products or component parts based upon our own design requirements. Our past experience with outside suppliers generally has been favorable, although from 2020 to 2022 we experienced supply chain disruptions for several key components, such as semiconductors. These supply chain disruptions eased over the course of 2023.

Intellectual Property

    We own and have licenses to the rights under a number of domestic and foreign patents, trademarks, trade names and brand names relating to our products and businesses. We defend our patent, trademark and trade and brand name rights primarily by monitoring competitors’ machines and industry publications and conducting other investigative work. We consider our intellectual property rights, including our right to use our trade and brand names, important in the operation of our businesses. However, we do not believe we are dependent on any single patent or group of patents, although several of our trade and brand names are internationally recognized and are important to our operations. We intend to maintain the separate strengths and identities of our core brand names and product lines.

Engineering, Research and Innovation

    We make significant expenditures for engineering and applied research to improve the quality and performance of our products, to develop new products and technologies which enhance agriculture and integrate sustainability and to comply with government safety and engine emissions regulations.

    Through our newly launched AGCO Ventures, we source and fund new technologies to drive and support farmers worldwide. This initiative actively connects our business needs with industry and market perspectives to identify investment opportunities in startup companies, corporate venture funds, incubators, accelerators, higher education and research institutions. AGCO Ventures supports the accelerated development of critical capabilities and competencies across three strategic areas: information management and analytics, agriculture technology and environmental and alternative fuel sources.

Wholesale Financing, Sales Terms and Accounts Receivable Sales Agreement

    Primarily in the United States and Canada, we engage in the standard industry practice of providing dealers with floor plan payment terms for their inventories of farm equipment for extended periods, generally through our AGCO Finance joint ventures. The terms of our wholesale finance agreements with our dealers vary by region and product line, with fixed payment schedules on all sales, generally ranging from one to 12 months. In the United States and Canada, dealers typically are not required to make an initial down payment, and our terms allow for an interest-free period generally ranging from one to 12 months, depending on the product. Amounts due from sales to dealers in the United States and Canada are immediately due upon a retail sale of the underlying equipment by the dealer, with the exception of sales of grain storage and protein production systems, as discussed further below. If not previously paid by the dealer, installment payments generally are required beginning after the interest-free period with the remaining outstanding equipment balance generally due within 12 months after shipment. In limited circumstances, we provide sales terms, and in some cases interest-free periods, that are longer than 12 months for certain products. These typically are specified programs, predominantly in the United States and Canada, where interest is charged after a period of up to 24 months, depending on various factors including dealers’ sales volumes during the preceding year. We generally obtain a security interest in the new and used equipment we finance.

    Sales terms outside the United States and Canada are typically of a shorter duration, generally ranging from 30 to 180 days. In many cases, we retain a security interest in the equipment sold on extended terms. In certain international markets, our sales are often backed by letters of credit or credit insurance.

    Sales of grain storage and protein production systems both in the United States and in other countries generally are payable within 30 days of shipment. In certain countries, sales of such systems for which we are responsible for construction or installation may be contingent upon customer acceptance. Payment terms vary by market and product, with fixed payment schedules on all sales. When we are responsible for installation services, fixed payment schedules may include upfront deposits, progress payments and final payment upon customer acceptance.

    We have accounts receivable sales agreements that permit transferring, on an ongoing basis, a majority of our wholesale receivables in North America, Europe and Brazil to our AGCO Finance joint ventures in the United States, Canada, Europe and Brazil. Upon transfer, the wholesale receivables maintain standard payment terms, including required regular principal payments on amounts outstanding and interest charges at market rates. Qualified dealers may obtain additional financing through our U.S., Canadian, European and Brazilian finance joint ventures at the joint ventures’ discretion. In addition, our AGCO Finance joint ventures may provide wholesale financing directly to dealers in Europe, Brazil and Australia.
5

We also sell certain trade receivables under factoring arrangements to other third-party financial institutions around the world, and we account for the sale of such receivables as off-balance sheet transactions.

Retail Financing

    Our AGCO Finance joint ventures offer financing to most of the end users of our products. Besides contributing to our overall profitability, the AGCO Finance joint ventures enhance our sales efforts by tailoring retail finance programs to prevailing market conditions. Our AGCO Finance joint ventures provide both retail financing and wholesale financing to our dealers in the United States, Canada, Europe, Brazil, Argentina and Australia. We have a minority interest in the joint ventures and they are owned by AGCO and a wholly-owned subsidiary of Rabobank. The majority of the assets of the finance joint ventures consist of finance receivables. The majority of the liabilities consist of notes payable and accrued interest. Under the various joint venture agreements, Rabobank provides financing to the AGCO finance joint ventures, primarily through lines of credit. We do not guarantee the debt obligations of the joint ventures. In the United States and Canada, we guarantee certain minimum residual values to those joint ventures upon expiration of certain eligible leases between the finance joint ventures and end users. We also have other guarantees with our other finance joint ventures. Refer to Note 22 of our Consolidated Financial Statements contained in Item 8, “Financial Statements and Supplementary Data,” for additional information.

    In addition, Rabobank is the primary lender with respect to our credit facility, our senior term loan and the loans related to the planned Trimble Ag joint venture, as are more fully described in “Liquidity and Capital Resources” within Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Our historical relationship with Rabobank has been strong, and we anticipate its continued long-term support of our business.

Seasonality

    Generally, retail sales by dealers to farmers are highly seasonal and largely are a function of the timing of the planting and harvesting seasons. To the extent possible, we attempt to ship products to our dealers and distributors on a level basis throughout the year to reduce the effect of seasonal retail demands on our manufacturing operations and to minimize our investment in inventory. Our financing requirements are subject to variations due to seasonal changes in working capital levels, which typically increase in the first half of the year and then decrease in the second half of the year. The fourth quarter is also typically a period for higher retail sales because of our customers’ year-end tax planning considerations, the increase in the availability of funds from completed harvests and the timing of dealer incentives. Our net sales and income from operations historically have been the lowest in the first quarter and have increased in subsequent quarters.

Environmental Regulations

    We are subject to environmental laws and regulations concerning emissions to the air, discharges of processed or other types of wastewater, and the generation, handling, storage, transportation, treatment and disposal of waste materials. These laws and regulations are constantly changing, and the effects that they may have on us in the future are impossible to accurately predict. We attempt to comply with all applicable environmental, health and safety laws and regulations. However, we believe that any expense or liability we may incur in connection with noncompliance with laws or regulations or the cleanup of any of our properties will not have a materially adverse effect on us.

    The engines manufactured by our AGCO Power division, which specializes in manufacturing off-road engines in the 75 to 500 horsepower range, currently comply with emissions standards and related requirements set by European, Brazilian and U.S. regulatory authorities, including both the United States Environmental Protection Agency and various state authorities. We expect to meet future emissions requirements through the introduction of new technology to our engines and exhaust after-treatment systems, as necessary. In some markets, such as the United States, we must obtain governmental environmental approvals in order to import our products, and these approvals can be difficult and time-consuming to obtain or may not be obtainable at all. Production at our facilities and sales of our products could be impaired if AGCO Power and our other engine suppliers are unable to timely respond to any changes in environmental laws and regulations affecting engine emissions, including the emissions of greenhouse gases (“GHG”). Compliance with environmental and safety regulations has added, and will continue to add, to the cost of our products and increase the capital-intensive nature of our business.

Regulation and Government Policy

    We have manufacturing facilities or other physical presence in approximately 31 countries and sell our products primarily through independent dealers and distributors in approximately 140 countries. This subjects us to a range of trade, product, foreign exchange, employment, tax, environmental and other laws and regulations, in addition to the environmental regulations discussed previously, in a significant number of jurisdictions. Many jurisdictions and a variety of laws regulate the
6

contractual relationships with our dealers. These laws impose substantive standards on the relationships between us and our dealers, including events of default, grounds for termination, non-renewal of dealer contracts and equipment repurchase requirements. Such laws could adversely affect our ability to terminate our dealers.

    In addition, each of the jurisdictions in which we operate or sell products has an important interest in the success of its agricultural industry and the consistency of the availability of reasonably priced food sources. These interests result in active political involvement in the agricultural industry, which in turn, can impact our business in a variety of ways.

Sustainability

    Our farmers continue to face increased challenges due to climate change. Our goal is to ensure that farmers have the machines and technologies they need to sustainability feed the world. Our products enable smart farming to help farms and machines run more efficiently with lower inputs and higher yields. Our precision agriculture products enable farmers to precisely place optimal amounts of inputs such as fertilizer, weed control and seeds. In addition, we are committed to driving down machinery emissions through battery powered electric tractors and other alternative fuel propulsion solutions to help farmers decarbonize and optimize their operations. AGCO also supports retrofit products to customers which provide more flexibility, extend product lifecycles, and generate less emissions compared to new products.

    While much of our focus is on innovating sustainable solutions, we are also committed to integrating sustainability into our core business strategy. Our low-carbon transition plan establishes key levers to reduce our climate impact by addressing both operational and value chain emissions. In our operations, we are embracing renewable energy and furthering initiatives to make our sites more energy efficient. Throughout our value chain, we attempt to deliver sustainable product solutions, optimize our transportation and logistics networks and engage supply chain partners to help drive environmental progress.

Human Capital

    We have approximately 27,900 employees worldwide, who are guided by our Company’s clear purpose – Farmer-focused solutions to sustainably feed our world. We are committed to fostering a diverse and inclusive workplace that attracts and retains exceptional talent. Through ongoing talent development, comprehensive compensation and benefits, and a focus on health, safety and employee well being, we strive to help our employees in all aspects of their lives so they can do their best work.

    Employees are further guided by our global Code of Conduct. We also maintain a global anonymous reporting mechanism for the receipt, retention and treatment of complaints or concerns regarding accounting or other possible violations of our global Code of Conduct.

    While fluctuations may occur within our workforce from time to time, we track and attempt to manage our attrition rates, while also ensuring that key positions critical to our performance are appropriately staffed. We also analyze employee departure data so that we can continually improve upon the employee experience.

Unions, Collective Bargaining Agreements and Work Councils

    Of our worldwide employees, approximately 5,800 are located in the United States. Many of our global manufacturing employees, and some other employees, are represented by unions and works councils, and a significant number of our employees are subject to collective bargaining agreements that typically are for terms of three to five years and are renegotiated in connection with renewals. We currently do not expect any significant difficulties in renewing these agreements.

    Some examples of key programs and initiatives that we are focused on to enable us to attract, retain and develop our diverse workforce are described below.

7

Talent

    To facilitate talent attraction, engagement and retention, we strive to make AGCO an inclusive and safe workplace, with opportunities for our employees to find success in their current roles as well as grow and develop in their careers, supported by strong compensation, benefits and health and wellness programs, and by platforms that build connections between our employees and their communities.

    Our employees engage in learning and development targeted to their current roles and future career aspirations. This includes completing online, self-directed and instructor-led courses across a broad range of categories – leadership, inclusion and diversity, professional skills, technical competencies and compliance. Compliance training includes education in AGCO’s culture and values and compliance with our global Code of Conduct, which, in turn, includes compliance with anti-bribery/corruption laws and policies, compliance with data privacy and cybersecurity protocols, conflicts of interest, discrimination and workplace harassment and sexual harassment policies.

    We are deeply committed to identifying and developing the next generation of top-tier leadership with a special focus on diverse and technologically innovative talent. We now conduct quarterly in-depth talent and succession reviews with our senior leadership team that focus on accelerating talent development, strengthening succession pipelines and advancing diversity representation for our most critical roles. In 2023, we expanded our focus, not only looking at rising leadership talent but also identifying the expert talent within the organization that we must engage, develop and retain to deliver on our organizational goals. We review our succession plans with our Board’s Talent and Compensation Committee annually.

    Furthermore, we have a performance management process that includes annual goal setting and annual performance appraisals. Both employees and managers play an active part in our performance management process, promoting a culture of accountability that fosters employee development. During 2023, our employee turnover rate related to voluntary terminations was approximately 7.5% as compared to 9.5% in 2022.

Rewards

    We periodically review surveys of market rates for jobs to ensure our compensation practices are competitive. We continue to strive to offer a variety of working arrangements, including flexible schedules to help employees manage work and life balance.

    We are committed to providing total rewards that are market-competitive and performance-based, driving innovation and operational excellence. Our compensation programs, practices, and policies reflect our commitment to reward short and long-term performance that aligns with and drives shareholder value. Total direct compensation is generally positioned within a competitive range of the market median, with differentiation based on tenure, skills, proficiency and performance to attract and retain key talent. In addition to salaries, our compensation programs include annual short-term and long-term incentive programs and participation in various retirement savings plans, dependent upon the position and level of employee and the countries in which we operate.

    We also invest in talent development initiatives to support the ongoing career development of all employees, including learning management and leadership programs.

Health, Wellness and Safety

    We are committed to the health, safety and wellness of our employees, striving to work safe, every day in every way. Our health and safety program focuses on risk reduction and safety management systems that promote preventative measures. We have implemented many leading and lagging indicators for enabling employee health and safety. Leading indicators are measured using proactive prevention programs that are designed to reduce overall risks by implementing risk assessments, ergonomic assessments and incident investigations to include detailed root cause corrective action analysis, near-miss corrective actions, and behavioral-based safety programs. The lagging indicators are measured by each of our facilities and demonstrate the current state regarding injury rates such as total case incident rate (“TCIR”). This is the third year in a row we achieved double digit improvement in our global TCIR rate. We reported a global TCIR of 1.86 in 2023, which is an approximate 15% decrease compared to 2022.

    In 2023, we focused on a global safety initiative to collect data from all sites, which added 80 additional AGCO sites into the program during 2023, up from 53 sites in 2022. This initiative is designed to ensure that we are capturing and regularly reporting safety statistics to ensure a complete understanding of our global safety performance. We intend to continue to focus
8

on the leading indicators in 2024 with an emphasis on Behavior and Culture, high frequency injury reduction and high severity risk reduction. We will be targeting improvement actions at our sites based on the inputs we receive from internal and vendor surveys that will drive further feedback. All sites worldwide have established objectives and targets to aid in achieving a target TCIR equal to 1.50 or less by 2025.

Diversity

    Our employees are our greatest asset and a key enabler of our success. We remain committed to advancing diversity, equity and inclusion ("DE&I") in our workplace to ensure every employee thrives and feels a sense of belonging. Our success will be impacted by how well diversity, equity and inclusion are embedded into our organizational culture and business practices. Our objective is to increase diversity, strengthen inclusion and advance equity. To accomplish this, in 2023, we developed a new strategy focused on four foundational pillars, Talent, Culture, Marketplace and Community. In addition, we identified key enablers that will ensure we meet our overarching objectives – Leadership Engagement, Accountability, Education and Communication. This newly designed framework will drive sustainable progress and best-in-class performance.

    Our commitment to diversity and inclusion starts at the top with a highly-skilled and gender-diverse board. Three of our ten board members are women. Women represent approximately 13% of our full-time executive positions at the senior vice president and vice president levels, and approximately 19% of our overall full-time management-level employees. We are committed to increasing the percentage of female representation in our full time management-level employee group and our overall global employee base, as well as to further initiatives for compensation equity, employee engagement, development and inclusion. We believe that embedding inclusion and equity into our everyday business practices enhances innovation and delivers better business results.

    Building upon our cultural beliefs, our employees value learning opportunities that increase awareness and understanding of the diverse cultures that exist within our workforce and throughout the countries in which we operate. Through our global DE&I initiatives, employees take part in robust training, including creating an inclusive environment and cultural training. We established employee resource groups (“ERGs”), such as AGCO’s Global Women’s Network and AGCO’s Black Employee Network, to help foster a diverse and inclusive workplace as well as support the growth and development of underrepresented groups. To support the global expansion of our ERGs, we have established a new framework to accelerate growth and organizational impact. Through our DE&I initiatives, we encourage employees to become involved in their communities, contributing time and talent for the improvement of the communities in which they live and work.

    During 2023, we administered our third global employee experience and engagement survey. The survey is an opportunity for all employees across our offices and shop floor locations worldwide to provide feedback on what we are doing well and where we can improve. 84% of our workforce participated in the survey, with a favorable engagement result of approximately 71%, which aligns with our core employee engagement index metric. We intend to repeat the global survey annually, and in 2024 we will increase the cadence of measurement of engagement as part of our commitment to delivering an exceptional employee experience across the employee lifecycle.
    
Human Rights Policy

    We are committed to respecting human rights in all aspects of our global operations under our global Human Rights Policy. We believe that we have a responsibility to ensure that human rights are understood and observed in every region in which we operate. We strive to foster safe, inclusive and respectful workplaces wherever we do business, including prohibiting human trafficking, slavery, child labor or any other form of forced or involuntary labor. Our commitment to human rights also includes improving agricultural prosperity and supporting marginalized farmers and vulnerable populations in developing countries where our activities contribute to addressing adverse human rights impacts. Through our AGCO Agriculture Foundation, as well as our brand and regional engagement activities, we support a variety of non-profit organizations and local community-based groups.

9

Available Information
    Our Internet address is www.agcocorp.com. We make the following reports filed by us available, free of charge, on our website under the heading “SEC Filings” in our website’s “Investors” section:
annual reports on Form 10-K;
quarterly reports on Form 10-Q;
current reports on Form 8-K;
proxy statements for the annual meetings of stockholders; and
reports on Form SD.

    These reports are made available on our website as soon as practicable after they are filed with the Securities and Exchange Commission (“SEC”). The SEC also maintains a website (www.sec.gov) that contains our reports and other information filed with the SEC.
    We also provide corporate governance and other information on our website. This information includes:
charters for the standing committees of our board of directors, which are available under the heading “Charters of the Committees of the Board” in the “Governance, Committees, & Charters” section of the “Corporate Governance” section of our website located under “Investors,” and
our Global Code of Conduct, which is available under the heading “Global Code of Conduct” in the “Corporate Governance” section of our website located under “Investors.”

    In addition, in the event of any waivers of our Global Code of Conduct, those waivers will be available under the heading “Corporate Governance” of our website.

    None of these materials, including the other materials available on our website, is incorporated by reference into this Form 10-K unless expressly provided.
10

Item 1A.    Risk Factors

    We make forward-looking statements in this report, in other materials we file with the SEC, on our website, in press releases and in materials that we otherwise share with the public. In addition, our senior management makes forward-looking statements to investors, analysts, the media and others. Statements, including the statements contained in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” concerning our future operations, prospects, strategies, products, manufacturing facilities, legal proceedings, financial condition, financial performance (including sales, earnings and related growth) and demand for our products and services, as well as other statements of our beliefs or expectations of industry conditions, currency translation impacts, market demand, supply chain and logistics disruptions, farm incomes, weather conditions, commodity and protein prices, general economic conditions, availability of financing, working capital, capital expenditures, debt service requirements, margins, production volumes, cost reduction initiatives, investments in, and results of, product development, compliance with financial covenants, support from lenders, recovery of amounts under guarantee, uncertain income tax provisions, funding of our pension and postretirement benefit plans, or realization of net deferred tax assets, are forward-looking statements. The forward-looking statements we make are not guarantees of future performance and are subject to various assumptions, risks and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. These factors include, among others, those set forth below and in the other documents that we file with the SEC. There also are other factors that we may not describe, generally because we currently do not perceive them to be material, or likely to become material, that also could cause actual results to differ materially from our expectations.

    These risks could impact our business in a number of ways, including by negatively impacting our future results of operations, cash flows and financial condition. For simplicity, below we collectively refer to these potential impacts as impacts on our “performance.”

    We expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Market, Economic and Geopolitical Risks

Our financial results depend entirely upon the agricultural industry, and factors that adversely affect the agricultural industry generally, including declines in the general economy, increases in farm input costs, unfavorable weather conditions and lower commodity and protein prices, adversely affect our performance.

    Our success depends entirely on the vitality of the agricultural industry. Historically, the agricultural industry has been cyclical and subject to a variety of economic and other factors. Sales of agricultural equipment, in turn, also are cyclical and generally reflect the economic health of the agricultural industry. The economic health of the agricultural industry is affected by numerous factors, including farm income, farm land values and debt levels and financing costs, all of which are influenced by levels of commodity and protein prices, acreage planted, crop yields, agricultural product demand, farm input costs, government policies and government subsidies. The economic health of the agricultural industry also is influenced by general economic conditions, interest rate and exchange rate levels, and the availability of financing for retail customers, including government financing subsidies to farmers, which can be significant in countries such as Brazil, as discussed elsewhere in this “Risk Factors” section. Trends in the agricultural industry, such as farm consolidations, may affect the agricultural equipment market. In addition, weather conditions, such as floods, heat waves or droughts, and pervasive livestock or crop diseases affect farmers’ buying decisions. Downturns in the agricultural industry due to these or other factors, which could vary by market, can result in decreases in demand for agricultural equipment, which would adversely affect our performance. Moreover, the unpredictable nature of many of these factors and the resulting volatility in demand make it difficult for us to accurately predict sales and optimize production. This, in turn, can result in higher costs, including inventory carrying costs and underutilized manufacturing capacity. During previous downturns in the agricultural industry, we experienced significant and prolonged declines in our performance, and we expect our business to remain subject to similar market fluctuations in the future.

The agricultural equipment industry is highly seasonal, and seasonal fluctuations significantly impact our performance.

    The agricultural equipment business is highly seasonal, which causes our quarterly results and our cash flow to fluctuate during the year. Farmers generally purchase agricultural equipment in the spring and fall in conjunction with the major planting and harvesting seasons. In addition, the fourth quarter typically is a significant period for retail sales because of year-end tax planning considerations, the increase in availability of funds from completed harvests, and the timing of dealer incentives. Our net sales and income from operations historically have been the lowest in the first quarter and have increased in subsequent quarters.
11


Most of our sales depend on the availability of financing to retail customers, and any disruption in their ability to obtain financing, whether due to economic downturns or otherwise, will result in the sale of fewer products by us. In addition, the collectability of receivables that are created from our sales, as well as from such retail financing, is critical to our business.

    Most retail sales of our products are financed, either by our AGCO Finance joint ventures or by a bank or other private lender. The AGCO Finance joint ventures, which are controlled by Rabobank and are dependent upon Rabobank for financing as well, finance approximately 50% of the retail sales of our tractors and combines in the markets where the joint ventures operate. Any difficulty by Rabobank in continuing to provide that financing, or any business decision by Rabobank as the controlling member not to fund the business or particular aspects of it (for example, a particular country or region), would require the joint ventures to find other sources of financing (which may be difficult to obtain) or would require us to find other sources of financing for our dealers and their retail customers.

    If we are unable to obtain other sources of financing, our dealers and their retail customers would be required to utilize other retail financing providers, which may or may not be available. In an economic downturn, we expect that financing for capital equipment purchases generally would become more difficult and more expensive to obtain. To the extent that financing is not available, or available only at unattractive prices, it would negatively impact our performance.

    Both AGCO and our AGCO Finance joint ventures have substantial accounts receivable from dealers and retail customers and are adversely impacted when collectability is less than optimal. Overall collectability depends upon the financial strength of the agricultural industry, which in turn depends upon the factors discussed elsewhere in this “Risk Factors” section. Certain finance joint ventures lease equipment as well and also may experience residual value losses that exceed expectations caused by lower pricing for used equipment and higher than expected returns at lease maturity. AGCO guarantees minimum residual values for some of the leased equipment. To the extent that defaults and losses are higher than expected, our equity in the net earnings of the finance joint ventures would be less, or there could be losses, which could materially impact our performance.

A majority of our sales and manufacturing take place outside the United States, and, as a result, we are exposed to risks related to foreign laws, taxes, economic conditions, labor supply and relations, political conditions and governmental policies as well as U.S. laws governing who we sell to and how we conduct business. These risks may delay or reduce our realization of value from our international operations.

    A majority of our sales are derived from sales outside the United States. The foreign countries in which our sales are the greatest are Germany, France, Brazil, the United Kingdom, Australia, Italy, Finland and Canada. We have significant manufacturing operations in France, Germany, Brazil, Italy and Finland, and we have established manufacturing operations in emerging markets, such as China. Many of our sales involve products that are manufactured in one country and sold in a different country, and therefore, our performance can be adversely affected by adverse changes, in either the country of origin or the country of destination, by the factors discussed elsewhere in this “Risk Factors” section, particularly the factors that impact the delivered cost of our products. Our business practices in these foreign countries must comply with not just local law, but also U.S. law, including limitations on where and to whom we may sell products and the Foreign Corrupt Practices Act (“FCPA”). We have a compliance program in place designed to reduce the likelihood of violations of these laws, but it is difficult to identify and prevent violations. Significant violations could subject us to fines and other penalties as well as increased compliance costs. Some of our international operations also are, or might become, subject to various risks that are not present in domestic operations, including restrictions on dividends and the repatriation of funds. Foreign emerging markets may present special risks, such as unavailability of financing, inflation, slow economic growth, price controls and difficulties in complying with U.S. regulations.

    Domestic and foreign political developments and government regulations and policies directly affect the international agricultural industry, which affects the demand for agricultural equipment. Declines in demand for agricultural equipment adversely affect our performance. The COVID-19 pandemic caused a global recession and increased economic and demand uncertainty. Future pandemics, in addition to related or unrelated application, modification or adoption of laws, regulations, trade agreements or policies, can adversely affect the agricultural industry, including the imposition of import and export duties and quotas, expropriation and potentially burdensome taxation, and could have an adverse effect on our performance. Trade restrictions, including potential withdrawal from or modification of existing trade agreements, negotiation of new trade agreements, and imposition of new (and retaliatory) tariffs against certain countries or covering certain products, could limit our ability to capitalize on current and future growth opportunities in the international markets in which we operate and impair our ability to expand our business by offering new technologies, products and services. These changes, particularly increases in the
12

cost of steel, also can impact the cost of the products we manufacture. Trade restrictions and changes in, or uncertainty surrounding, global trade policy also could affect our competitive position.

    As previously discussed, the health of the agricultural industry and the ability of our international dealers and retail customers to operate their businesses, in general, are affected by domestic and foreign government programs that provide economic support to farmers. As a result, farm income levels and the ability of farmers to obtain advantageous financing and other protections would be reduced to the extent that any such programs are curtailed or eliminated. Any such reductions likely would result in a decrease in demand for agricultural equipment. For example, a decrease or elimination of current price protections for commodities or of subsidy payments or financing rate subsidies for farmers in the European Union, the United States, Brazil or elsewhere would negatively impact the operations of farmers in those regions, and, as a result, our sales may decline if these farmers delay, reduce or cancel purchases of our products. In emerging markets, some of these (and other) risks can be greater than they might be elsewhere. In addition, the financing provided by the AGCO Finance joint ventures or by others in certain jurisdictions is supported by a government subsidy or guarantee in some markets, including financing rate subsidies. The programs under which those subsidies and guarantees are provided generally are of limited duration and subject to renewal and contain various caps and other limitations. In some markets, for example Brazil, this support is quite significant and, from time to time, has not been available. In the event the governments that provide this support elect not to renew these programs, and were financing not available on reasonable terms, whether through our AGCO Finance joint ventures or otherwise, our performance would be negatively impacted.

    As of December 31, 2023, we had approximately 40 employees in Ukraine, and in 2023 and 2022, we had net sales of approximately $85 million and $76 million, respectively. As of December 31, 2023 and 2022, we had less than $15 million in assets in Ukraine. It is unclear what impact the hostilities in Ukraine going forward will have on our net sales or assets, although we assume that our net sales may continue to decline in the Ukraine, possibly significantly. We assess the fair value of our assets in Ukraine for potential impairment on a periodic basis as warranted.

    In addition, AGCO sells products in, and purchases parts and components from, other regions where there could be hostilities. Should hostilities arise, we would expect our sales to decline and for our parts and component deliveries to be interrupted, which would adversely impact our performance.

    As a result of the multinational nature of our business and the acquisitions that we have made over time, our corporate and tax structures are complex, with a significant portion of our operations being held through foreign holding companies. As a result, we are subject to taxation from multiple tax jurisdictions, and it can be inefficient, from a tax perspective, for us to repatriate or otherwise transfer funds. In addition, we must comply with a greater level of tax-related regulation and reviews by multiple governmental units than do companies with a more simplified structure. Our foreign and U.S. operations also routinely sell products to, and license technology to, other operations of ours. The pricing of these intra-company transactions is subject to regulation and review as well. While we make every effort to comply with all applicable tax laws, audits and other reviews by governmental entities for non-compliance could result in our companies being required to pay additional taxes, interest and penalties.

We face significant competition, and, if we are unable to compete successfully against other agricultural equipment manufacturers, we will lose dealers and their retail customers and our performance will decline.

    The agricultural equipment business is highly competitive, particularly in our major markets. Our two key competitors, Deere & Company and CNH Industrial N.V., are substantially larger than we are and have greater financial and other resources. In addition, in some markets, we compete with smaller regional competitors with significant market share in a single country or group of countries. Our competitors may substantially increase the resources devoted to the development and marketing, including discounting, of products that compete with our products, which would necessitate our making similar expenditures. In addition, competitive pressures in the agricultural equipment business may affect the market prices of new and used equipment, which, in turn, may adversely affect our performance.

    We maintain an independent dealer and distribution network in the markets where we sell products. The financial and operational capabilities of our dealers and distributors are critical to our ability to compete in these markets. In addition, we compete with other manufacturers of agricultural equipment for dealers. If we are unable to compete successfully against other agricultural equipment manufacturers, we could lose dealers and their retail customers and performance may decline.

Our expansion plans in emerging markets entail significant risks.

13

    Our long-term strategy includes establishing a greater manufacturing and supply-chain and/or marketing presence in emerging markets such as India and Africa. As we progress with these efforts, it will involve a significant investment of capital and other resources and entail various risks. These include risks attendant to obtaining necessary governmental approvals and the construction of facilities in a timely manner and within cost estimates, the establishment of supply channels, the commencement of efficient manufacturing operations, and, ultimately, the acceptance of the products by retail customers. While we expect the expansion to be successful, should we encounter difficulties involving these or similar factors, it may not be as successful as we anticipate and could adversely impact our performance.

Brexit and political uncertainty in the United Kingdom and the European Union could disrupt our operations and adversely affect our performance.

    A majority of our operations are in the United Kingdom and the European Union. The United Kingdom withdrew from the European Union, in a process known as “Brexit,” effective December 31, 2020. While to date the consequences to the Company from Brexit have not been significant, the implementation of Brexit is not complete and over the longer term, changes in the regulatory environment, particularly changes that restrict the movement of capital, goods and personnel that result in increases in compliance obligations, could adversely impact our performance.

    There also is a risk that other countries may leave the European Union, leaving uncertainty regarding debt burden of certain Eurozone countries and their ability to meet future financial obligations, as well as uncertainty over the long-term stability of the Euro as a single common currency. These uncertainties and implications could materially adversely impact the financial markets in Europe and globally, as well as our customers, suppliers and lenders and ultimately our performance.

Inflation can impact our costs and sales.

    During 2022 and 2023, we experienced significant inflation in a range of costs, including for parts and components, labor, transportation, logistics, and energy. While inflation has eased over 2023 and we have been able to pass along these higher costs through increased prices, there can be no assurance that we will be able to continue to do so. If we are not, it will adversely impact our performance.

Product Development, Manufacturing and Operations

Our success depends on the introduction of new products, which requires substantial expenditures.

    Our long-term results depend upon our ability to introduce and market new products successfully. The success of our new products will depend on a number of factors, including:
innovation;
customer acceptance;
the efficiency of our suppliers in providing component parts and of our manufacturing facilities in producing final products; and
the performance and quality of our products relative to those of our competitors.

    As both we and our competitors continuously introduce new products or refine versions of existing products, we cannot predict the level of market acceptance or the amount of market share our new products will achieve. We have experienced delays in the introduction of new products in the past, and we may experience delays in the future. Any delays or other problems with our new product launches, such as high warranty costs, will adversely affect our performance. In addition, introducing new products can result in decreases in revenues from our existing products.

    Consistent with our strategy of offering new products and product refinements, we expect to make substantial investments in product development and refinement. We may need more funding for product development and refinement than is readily available, which could adversely affect our performance.

If we are unable to deliver precision agriculture and high-tech solutions to our customers, it could materially adversely affect our performance.

    Increasingly our customers are implementing precision farming solutions. In order to remain competitive, we have been able to successfully acquire or develop and introduce new solutions that improve profitability and sustainable farming techniques. Our precision technology products include both hardware and software components that relate to guidance,
14

telemetry, automation, autonomy and connectivity solutions. We expect to make significant investments in research and development expenses, acquisitions of businesses, collaborative arrangements and other sources of technology to drive these outcomes. These investments include the recently announced planned acquisition of the agriculture assets and technologies of Trimble through the formation of a joint venture of which we will own 85% further discussed in the Trimble Ag joint venture transaction risk factor below. Such investments may not produce attractive solutions for our customers. We also may have to depend on third parties to supply certain hardware or software components or data services in our precision technology products. Our dealers' ability to support such solutions also may impact our customers, acceptance and demand of such products.

Rationalization or restructuring of manufacturing facilities, and plant expansions and system upgrades at our manufacturing facilities, may cause production capacity constraints and inventory fluctuations.

    The rationalization of our manufacturing facilities has at times resulted in, and similar rationalizations or restructurings (including relocating production from one facility to another) in the future may result in, temporary constraints upon our ability to produce the quantity of products necessary to fill orders and thereby complete sales in a timely manner. In addition, system upgrades at our manufacturing facilities that impact ordering, production scheduling, manufacturing and other related processes are complex, and could impact or delay production. A prolonged delay in our ability to fill orders on a timely basis could affect customer demand for our products and increase the size of our product inventories, causing future reductions in our manufacturing schedules and adversely affecting our performance. Moreover, our continuous development and production of new products often involve the retooling of existing manufacturing facilities. This retooling may limit our production capacity at certain times in the future, which could adversely affect our performance. In addition, the expansion and reconfiguration of existing manufacturing facilities, as well as new or expanded manufacturing operations in emerging markets, such as China, could increase the risk of production delays, as well as require significant investments.

We depend on suppliers for components, parts and raw materials for our products, and any failure by our suppliers to provide products as needed, or by us to promptly address supplier issues, will adversely impact our ability to timely and efficiently manufacture and sell products. We also are subject to raw material price fluctuations, which can adversely affect our manufacturing costs.

    Our products include components and parts manufactured by others. As a result, our ability to timely and efficiently manufacture current products, to introduce new products, and to shift manufacturing of products from one facility to another depends on the quality of these components and parts and the timeliness of their delivery to our facilities. During 2022, we experienced significant supply chain interruptions, including delays in timely deliveries of components. While supply chain disruptions eased in 2023, there can be no assurance that there will not be future disruptions. At any particular time, we depend on numerous suppliers, and the failure by one or more of our suppliers to perform as needed will result in fewer products being manufactured, shipped and sold. If the quality of the components or parts provided by our suppliers is less than required and we do not recognize that failure prior to the shipment of our products, we will incur higher warranty costs. The timely supply of component parts for our products also depends on our ability to manage our relationships with suppliers, to identify and replace suppliers that fail to meet our schedules or quality standards, and to monitor the flow of components and accurately project our needs. The shift from our existing suppliers to new suppliers, including suppliers in emerging markets, also may impact the quality and efficiency of our manufacturing capabilities, as well as warranty costs.

    Changes in the availability and prices of certain raw materials, components and parts could result in production disruptions or increased costs and lower profits on the sale of our products. Changes in the availability and price of these raw materials, components and parts, which have fluctuated significantly in the past and are more likely to fluctuate during times of economic volatility, as well as regulatory instability or change in tariffs, can significantly increase the costs of production. This, in turn, could have a material negative effect on performance, particularly if, due to pricing considerations or other factors, we are unable to recover the increased costs through pricing from our dealers.

We may encounter difficulties in integrating businesses we acquire and may not fully achieve, or achieve within a reasonable time frame, expected strategic objectives and other expected benefits of the acquisitions.

    From time-to-time we seek to expand through acquisitions of other businesses, including, our planned acquisition of the agricultural assets and technologies of Trimble through the formation of a joint venture of which we will own 85%, which is further discussed in the Trimble Ag joint venture transaction risk factor below. We expect to realize strategic and other benefits as a result of our acquisitions, including, among other things, the opportunity to extend our reach in the agricultural industry and provide our dealers and their retail customers with an even wider range of products and services. However, it is impossible
15

to predict with certainty whether, or to what extent, these benefits will be realized or whether we will be able to integrate acquired businesses in a timely and effective manner. For example:
the costs of integrating acquired businesses and their operations may be higher than we expect and may require significant attention from our management;
the businesses we acquire may have undisclosed liabilities, such as environmental liabilities or liabilities for violations of laws, such as the FCPA, that we did not expect;
our ability to successfully carry out our growth strategies for acquired businesses often will be affected by, among other things, our ability to maintain and enhance our relationships with their existing customers, our ability to provide additional product distribution opportunities to the acquired businesses through our existing distribution channels, changes in the spending patterns and preferences of customers and potential customers, fluctuating economic and competitive conditions and our ability to retain their key personnel; and
our approach and strategies with respect to the development and introduction of new precision technology solutions to improve the profitability and sustainability for our farmer customers, including technologies we obtain through acquisitions, investments and joint ventures, may not provide the desired results for our customers.

    Our ability to address these issues will determine the extent to which we are able to successfully integrate, develop and grow acquired businesses and technologies to realize the expected benefits of these transactions. Our failure to do so could have a material adverse effect on our performance.

We may not be able to complete the Trimble Ag joint venture transaction or successfully integrate the joint venture into our business, which could adversely affect our business or results of operations.

    We recently announced the planned acquisition of the agriculture assets and technologies of Trimble through the formation of the Trimble Ag joint venture, of which we will own 85%. Closing the transaction is dependent upon obtaining required regulatory approvals (primarily competition and antitrust approvals), obtaining the necessary financing, and fulfilling other closing conditions, all of which, at least in part, are not within our control. The Sale and Contribution Agreement ("the Agreement") entitles Trimble and AGCO to terminate the Agreement under certain circumstances, including the failure of the closing to occur nine months following the date of entry into the Agreement (followed by two three-month extensions in the event that the delay is the result of the failure to obtain certain antitrust approvals). Under certain circumstances, we could be obligated to pay Trimble a termination fee of $94 million. In addition, acquisitions and joint venture transactions involve many risks, including the difficulty of determining the appropriate valuation, which is based upon a number of factors, including projections provided by the seller, which may not prove accurate, the challenges attendant to integrating the operations, technologies, services and products of the acquired lines of businesses, reactions by customers to the transaction, particularly the rate at which Trimble’s largest OEM customer reduces purchases of Trimble equipment, and the rate of replacement by the joint venture of those sales, personnel turnover, and the diversion of management's attention from other business matters. In addition, we may be unable to achieve anticipated benefits from the transaction in the time frame that we anticipate, or at all. All of these risks, as well as the others that typically accompany a large transaction, could adversely affect our business or results of operations.

Our business routinely is subject to claims and legal actions, some of which could be material.

    We routinely are a party to claims and legal actions incidental to our business. These include claims for personal injuries by users of farm equipment, disputes with distributors, vendors and others with respect to commercial matters, and disputes with taxing and other governmental authorities regarding the conduct of our business, including environmental matters. While these matters generally are not material to our business, it is entirely possible that a matter will arise that is material.

    In addition, we use a broad range of technology in our products. We developed some of this technology, we license some of this technology from others, and some of the technology is embedded in the components and parts that we purchase from suppliers. From time-to-time, third parties make claims that the technology that we use violates their patent rights. While to date none of these claims have been significant, we cannot provide any assurances that there will not be significant claims in the future or that currently existing claims will not prove to be more significant than anticipated.

Financial Risks

We can experience substantial and sustained volatility with respect to currency exchange rates and interest rates, which can adversely affect our performance and the competitiveness of our products.

16

    We conduct operations in a variety of currencies. Our production costs, profit margins and competitive position are affected by the strength of the currencies in countries where we manufacture or purchase goods relative to the strength of the currencies in countries where our products are sold. We also are subject to currency exchange rate risk to the extent that our costs are denominated in currencies other than those in which we denominate sales, and to risks associated with translating the financial statements of our foreign subsidiaries from local currencies into United States dollars. Similarly, changes in interest rates affect us by increasing or decreasing borrowing costs and finance income. Our most significant transactional foreign currency exposures are the Euro, the Brazilian real and the Canadian dollar in relation to the United States dollar, and the Euro in relation to the British pound. Where naturally offsetting currency positions do not occur, we attempt to manage these risks by economically hedging some, but not necessarily all, of our exposures through the use of foreign currency forward exchange or option contracts. As with all hedging instruments, there are risks associated with the use of foreign currency forward exchange or option contracts, interest rate swap agreements and other risk management contracts. While the use of such hedging instruments provides us with protection for a finite period of time from certain fluctuations in currency exchange and interest rates, when we hedge we forego part or all the benefits that might result from favorable fluctuations in currency exchange and interest rates. In addition, any default by the counterparties to these transactions could adversely affect our performance. Despite our use of economic hedging transactions, currency exchange rate or interest rate fluctuations may adversely affect our performance.

    We also are subject to the risk of the imposition of limitations by governments on international transfers of funds. In recent years, the Argentine government has substantially limited the ability of companies to transfer funds out of Argentina. As a consequence of these limitations, the spread between the official government exchange rate and the exchange rates resulting implicitly from certain capital market operations, usually effected to obtain United States dollars, has broadened significantly. In December 2023, the central bank of Argentina adjusted the official foreign currency exchange rate for the Argentine peso, significantly devaluing the currency relative to the United States dollar. In December 2023, we recorded losses of approximately $80.4 million related to the devaluation of the Argentine peso and the related impacts to our AGCO finance joint venture in Argentina as included within Item 8, “Financial Statements and Supplementary Data." Further devaluation of the peso or continuation or expansion of limitations of transfer of funds in Argentina or in other markets in which we operate, would adversely affect our performance. Please refer to the "Foreign Currency Risk Management" section within Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” for more information.

We have significant pension and retiree healthcare obligations with respect to our employees, and our cash flow available for other purposes may be adversely affected in the event that payments become due under any pension plans that are unfunded or underfunded. Declines in the market value of the securities used to fund these obligations will result in increased pension expense in future periods.

    A portion of our active and retired employees participate in defined benefit pension and retiree healthcare plans under which we are obligated to provide prescribed levels of benefits regardless of the value of the underlying assets, if any, of the applicable plans. To the extent that our obligations are unfunded or underfunded, we will have to use cash flow from operations and other sources to fulfill our obligations either as they become due or over some shorter funding period. In addition, since the assets that we already have provided to fund these obligations are invested in debt instruments and other securities, the value of these assets varies due to market factors. Historically, these fluctuations have been significant and sometimes adverse, and there can be no assurances that they will not be significant or adverse in the future. Similarly the amount of our obligations varies depending upon mortality assumptions, discount rates, salary growth, retirement rates and ages, inflation, changes in health care costs and similar factors, which generally are not in our control. We also are subject to laws and regulations governing the administration of our plans in certain countries, and the specific provisions, benefit formulas and related interpretations of such laws, regulations and provisions can be complex. Failure to properly administer the provisions of our plans and comply with applicable laws and regulations could have an adverse impact to our results of operations. We have unfunded or underfunded obligations related to our pension and other postretirement health care benefits. See the notes to our Consolidated Financial Statements contained in Item 8, “Financial Statements and Supplementary Data,” for more information regarding our unfunded or underfunded obligations.

We have substantial goodwill, and impairment of that goodwill could materially impact our results of operation.

    As of December 31, 2023, we had approximately $1,333.4 million of goodwill reflected on our consolidated balance sheet. While we will not know with certainty the amount of goodwill that will be created as part of the planned Trimble Ag joint venture until after the closing date, we currently expect the amount to be material. As discussed in Note 1 to our Consolidated Financial Statements in Item 8, “Financial Statements and Supplementary Data," we test goodwill for impairment annually or more often under certain circumstances. Goodwill can be difficult to value, and in all events valuation requires the use of estimates and judgment as discussed in "Critical Accounting Estimates" in Item 7, “Management’s Discussion and
17

Analysis of Financial Condition and Results of Operations”. Our goodwill was created in connection with business acquisitions. If those businesses do not perform as expected, future valuations may not support the amount of goodwill, and we could conclude that an impairment has occurred. Similarly, if the estimates and judgment used in our annual impairment tests prove to be incorrect, impairment could be required. Given the magnitude of the goodwill expected to be added as part of the planned Trimble Ag joint venture, an impairment of that goodwill could be significant and could materially impact our results of operations.

We have a substantial amount of indebtedness and will incur more as part of the planned Trimble Ag joint venture, and, as a result, we are subject to certain restrictive covenants and payment obligations that may adversely affect our ability to operate and expand our business.

    Our credit facility and certain other debt agreements have various financial and other covenants that require us to maintain certain total debt to EBITDA and interest coverage ratios. As previously announced, in connection with the
planned Trimble Ag joint venture, we expect to incur a substantial amount of additional indebtedness. In addition, the credit facility and certain other debt agreements contain other restrictive covenants, such as ones that limit the incurrence of indebtedness and the making of certain payments, including dividends, and are subject to acceleration in the event of default. If we fail to comply with these covenants and are unable to obtain a waiver or amendment, an event of default would result.

    If any event of default were to occur, our lenders could, among other things, declare outstanding amounts due and payable, and our cash may become restricted. In addition, an event of default or declaration of acceleration under our credit facility or certain other debt agreements also could result in an event of default under our other financing agreements.

Our substantial indebtedness could have other important adverse consequences such as:
requiring us to dedicate a substantial portion of our cash flows from operations to payments on our indebtedness, which would reduce the availability of our cash flow to fund future working capital, capital expenditures, acquisitions and other general corporate purposes;
increasing our vulnerability to general adverse economic and industry conditions;
limiting our flexibility in planning for, or reacting to, changes in our business and the agricultural industry;
restricting us from being able to introduce new products or pursuing business opportunities;
placing us at a competitive disadvantage compared to our competitors that may have less indebtedness; and
limiting, along with the financial and other restrictive covenants in our indebtedness, among other things, our ability to borrow additional funds, repurchase shares, pay cash dividends or engage in or enter into certain transactions.

Changes to United States tax, tariff, trade and import/export regulations may have a negative effect on global economic conditions, financial markets and our business.

    There have been ongoing discussions and significant changes to United States trade policies, treaties, tariffs and taxes. Although the levels change from period to period, we generally have substantial imports into the United States of products and components that are either produced in our foreign locations or are purchased from foreign suppliers, and also have substantial exports of products and components that we manufacture in the United States. The impact of any changes to current trade, tariff or tax policies relating to imports and exports of goods is dependent on factors such as the treatment of exports as a credit to imports, and the introduction of any tariffs or taxes relating to imports from specific countries. The most significant changes have been the imposition of tariffs by the United States on imports from China and the imposition by China of tariffs on imports from the United States. These trade restrictions include withdrawal from or modification of existing trade agreements, negotiation of new trade agreements, or tariffs on the import of agricultural commodities into China, which are critical to our customers. Policies impacting exchange rates and commodity and protein prices or limiting the export of commodities could have a material adverse impact on the international flow of agricultural and other commodities that may result in a corresponding negative impact on the demand for agricultural equipment across the world. Our sales could be negatively impacted by such policies because farm income strongly influences sales of such equipment globally.

    In the past, we have had moderate amounts of imports into the U.S. from China. To date, the impact of U.S. import tariffs on China-sourced equipment has not been material to us because we have been able to redirect production and employ sourcing alternatives for products previously imported into the U.S. from our China manufacturing facility. In addition, we do not export significant amounts from the United States into China. It is unclear what other changes might be considered or implemented and what response to any such changes may be by the governments of other countries. Any changes that increase
18

the cost of international trade or otherwise impact the global economy, including through the increase in domestic prices for raw materials, could have a material adverse effect on our performance.

    Further, the Pacific Rim region is an important producer of parts and components that are critical to our products, particularly semiconductor chips. Should events in that region or between governments in that region and the countries in which we manufacture products deteriorate, it could significantly adversely impact the availability of parts and components to us, and, correspondingly, our ability to produce products at targeted levels.

    Changes to income tax laws and regulations, or the interpretation of such laws, in any of the jurisdictions in which we operate could significantly increase our effective tax rate and ultimately reduce our cash flows from operating activities and otherwise have a material adverse effect on our financial condition.

    On December 15, 2022, the European Union Member States formally adopted the EU’s Pillar Two Directive, which generally provides for a minimum effective tax rate of 15%, as established by the Organization for Economic Co-operation and Development (OECD) Pillar Two Framework that was supported by over 130 countries worldwide. The European Union effective dates are January 1, 2024, and January 1, 2025, for different aspects of the directive. The Company is evaluating the impact this directive could have on the Company’s future tax provision and the effective tax rate, as well as any other impacts on the Company’s financial position and results of operations.

The COVID-19 pandemic has disrupted our business and operations, and future public health crises could materially adversely impact our business, financial condition, liquidity and results of operations.

    The COVID-19 pandemic has previously disrupted our business. The COVID-19 pandemic or other new public health crises may disrupt our business in the future, which could materially affect our results of operations, financial condition, liquidity and future expectations. Any such events may adversely impact our global supply chain and global manufacturing operations and cause us to suspend our operations in the affected markets. In particular, we could experience, among other things: continued or additional global supply chain and logistics disruptions; labor disruptions or shortages; an inability to manufacture; and an inability to sell to our customers.

Climate Change and Other Environmental Risks

We increasingly are subject to risks attendant to climate change. Failure to understand and prepare for the risks related to the transition to a lower-carbon economy, and risks related to the physical impacts of climate change could impact our performance.

    It is widely recognized that global climate change is occurring. We are unable to predict with any certainty the impacts upon our business of climate change, although we recognize that they are likely to be significant. Among the risks that we face are (i) increased governmental regulation of both our manufacturing operations and the equipment that we produce, (ii) the possibility that we will not become as resource-efficient in our operations as we need to, both as a result of our own actions (or inactions) and those of our suppliers, (iii) that we will not be able to develop new and improved products that help our farmer customers address climate-related changes and opportunities and that keep our products competitive with the products of others, (iv) that climate change will reduce demand for our products, and (v) the impacts on our physical facilities, including from increased severe weather condition risks. The first three of these risks may be considered “transition” risks. Addressing each of these risks is likely to entail the incurrence of significant costs by us, although, in the case of transition risks, we already may be incurring many, if not most, of these costs through our ongoing engine development programs and our precision farming research and development. However, we may not be able to address these risks effectively and efficiently, which would impact our performance.

    In addition, we are increasingly subject to requirements for disclosure regarding our GHG emissions as well as those of our upstream vendors and downstream customers. The European Union recently adopted the European Sustainability Reporting Standards (ESRS) and the Corporate Sustainability Reporting Directive (CSRD) that will impose disclosure of the risks and opportunities arising from social and environmental issues, and on the impact of companies’ activities on people and the environment. The CSRD will need to be transposed into Member State law before it becomes effective, which is expected to occur in 2024. Similarly, the State of California recently passed the Climate Corporate Data Accountability Act and the Climate-Related Financial Risk Act that will impose broad climate-related disclosure obligations on certain companies doing business in California, including us, starting in 2026. The SEC has included in its regulatory agenda potential rulemaking on climate change disclosures that, if adopted, could significantly increase compliance burdens and associated regulatory costs and complexity. Further, the International Sustainability Standards Board issued sustainability and climate change disclosure standards in June 2023, which the U.K. and other countries in which we operate indicated they will adopt as their own binding standards. Our failure to comply with any applicable rules or regulations or other criticisms of our sustainability disclosures
19

could lead to penalties or claims and other litigation, impact our reputation, customer attraction and retention, access to capital and employee retention, and otherwise adversely impact our performance. Compliance with these requirements will be complex and expensive.

    Investors and financial institutions increasingly are expecting the disclosures described above, and some financial institutional investors are assessing their investments and investment opportunities based upon how businesses are addressing climate change. Any failure by us to satisfy their assessments could impact the desirability of an investment in AGCO, our access to capital could be restricted and the share price of our common stock could be impacted. For a discussion of some of the actions that we have taken, see Item 1, “Business”, above.

We are subject to extensive environmental laws and regulations, including increasingly stringent engine emissions standards, and our compliance with, or our failure to comply with, existing or future laws and regulations could delay production of our products or otherwise adversely affect our business.

    In addition to the more general climate change regulation described above, we are subject to increasingly stringent environmental laws and regulations in the countries in which we operate. These regulations govern, among other things, emissions into the air, discharges into water, the use, handling and disposal of hazardous substances, waste disposal and the prevention and remediation of soil and groundwater contamination. Our costs of complying with these or any other current or future environmental regulations may be significant. For example, several countries have adopted more stringent environmental regulations regarding emissions into the air, and it is possible that new emissions-related legislation or regulations will be adopted in connection with concerns regarding GHG. The regulation of GHG emissions from certain stationary or mobile sources could result in additional costs to us in the form of taxes or emission allowances, facilities improvements and energy costs, which would increase our operating costs through higher utility and transportation expenses and costs of materials. Increased input costs, such as fuel and fertilizer, and compliance-related costs also could impact retail customer operations and demand for our equipment. Because the impact of any future GHG legislative, regulatory or product standard requirements on our global businesses and products is dependent on the timing and design of mandates or standards, we are unable to predict its potential impact at this time.

    In addition, the products that we manufacture or sell, particularly engines, are subject to increasingly stringent environmental regulations, including those that limit GHG emissions. As a result, on an ongoing basis we incur significant engineering expenses and capital expenditures to modify our products to comply with these regulations. Further, we may experience production delays if we or our suppliers are unable to design and manufacture components for our products that comply with environmental standards. For instance, as we are required to meet more stringent engine emission reduction standards that are applicable to engines we manufacture or incorporate into our products, we expect to meet these requirements through the introduction of new technology to our products, engines and exhaust after-treatment systems, as necessary. Failure to meet applicable requirements could materially affect our performance.

    We also may be subject to liability in connection with properties and businesses that we no longer own or operate. We may be adversely impacted by costs, liabilities or claims with respect to our operations under existing laws or those that may be adopted in the future that could apply to both future and prior conduct. If we fail to comply with existing or future laws and regulations, we may be subject to governmental or judicial fines or sanctions, or we may not be able to sell our products and, therefore, it could adversely affect our performance.

We are subject to disclosure obligations with respect to conflict materials.

    We are subject to SEC disclosure obligations relating to “conflict minerals” (columbite-tantalite, cassiterite (tin), wolframite (tungsten) and gold) that are sourced from the Democratic Republic of Congo or adjacent countries. Complying with these requirements has and will require us to incur additional costs, including the costs to determine the sources of any conflict minerals used in our products and to modify our processes or products, if required. As a result, we may choose to modify the sourcing, supply and pricing of materials in our products. In addition, we may face reputational and regulatory risks if the information that we receive from our suppliers is inaccurate or inadequate, or our process for obtaining that information does not fulfill the SEC’s requirements. We have a formal policy with respect to the use of conflict minerals in our products that is intended to minimize, if not eliminate, conflict minerals sourced from the covered countries to the extent that we are unable to document that they have been obtained from conflict-free sources.

20

Human Capital Risks

Our labor force is heavily unionized, and our obligations under collective bargaining agreements and labor laws subject us to the risks of work interruption or stoppage and could cause our costs to be higher.

    Most of our employees, most notably at our manufacturing facilities, are subject to collective bargaining agreements and union contracts with terms that expire on varying dates. Several of our collective bargaining agreements and union contracts generally are of limited duration and, therefore, must be re-negotiated frequently. As a result, we are at greater risk of work interruptions or stoppages than non-unionized companies, and any work interruption or stoppage could significantly impact the volume of products we have available for sale. In addition, collective bargaining agreements, union contracts and labor laws may impair our ability to streamline existing manufacturing facilities, restructure our business or otherwise reduce our labor costs because of limitations on personnel and salary changes and similar restrictions.

Our ability to recruit, develop, train and retain qualified and skilled employees could impact our ability to execute strategies.

    Our success is dependent, in part, on our ability to recruit, develop, train and retain qualified employees with the relevant education, background and experience. Equally we must be able to retain such skilled employees through our efforts to develop, train, compensate and engage them. Failure to do so could impair our ability to execute our business strategies and could ultimately impact our performance.

Data Security, Privacy and Cybersecurity Risks

Our business increasingly is subject to regulations relating to privacy and data protection, and if we violate any of those regulations we could be subject to significant claims, penalties and damages.

    Increasingly, the United States, the European Union, Brazil and other governmental entities are imposing regulations designed to protect the collection, maintenance and transfer of personal information. For example, the European Union adopted the General Data Protection Regulation (the “GDPR”) that imposed stringent data protection requirements and greater penalties for non-compliance beginning in May 2018. The GDPR also protects a broader set of personal information than traditionally has been protected in the United States and provides for a right of “erasure.” Other regulations govern the collection and transfer of financial data and data security generally. These regulations generally impose penalties in the event of violations, and private lawsuits in the event of a release of personal information are common. While we attempt to comply with all applicable privacy regulations, their implementation is complex, and, if we are not successful, we may be subject to penalties and claims for damages from regulators and the impacted parties.

Cybersecurity breaches and other disruptions to our information technology infrastructure could interfere with our operations and could compromise confidential information, exposing us to liability that could cause our business and reputation to suffer.

    We rely upon information technology networks and systems, some of which are managed by third parties, to process, transmit and store electronic information, and to manage or support a variety of business processes and activities, including supply chain, manufacturing, distribution, invoicing and collection of payments from dealers or other purchasers of our equipment. We also use information technology systems to record, process and summarize financial information and results of operations for internal reporting purposes and to comply with regulatory financial reporting, legal and tax requirements. Additionally, we collect and store sensitive data, including intellectual property and proprietary business information, in data centers and on information technology networks. The secure operation of these information technology networks and the processing and maintenance of this information is critical to our business operations and strategy. Despite security measures and business continuity plans, our information technology networks and infrastructure are vulnerable to damage, disruptions or shutdowns due to attacks by cyber criminals or breaches due to employee error or malfeasance or other disruptions during the process of upgrading or replacing computer software or hardware, power outages, computer viruses, telecommunication or utility failures, terrorist acts or, natural disasters or other catastrophic events. On May 5, 2022, we discovered that we had been subject to a ransomware cyberattack. The attack resulted in the temporary closure of most of our production sites and parts operations. A majority of the affected locations resumed operations within approximately two weeks after the attack was discovered. There was some data exfiltration as a result of the attack, and a portion of the exfiltrated data subsequently was released publicly. We do not have significant retail operations, and we do not believe that the exfiltrated data included privacy- protected consumer data or that the exfiltration was consequential. We have invested heavily in maturing our information technology and cybersecurity operations and continue to review and improve our safeguards to minimize our exposure to future attacks. The cost of remediation to the impacted systems has not been material. We maintain a cyber liability insurance
21

program, although the coverage may not be sufficient in some circumstances. While we do not believe that the ultimate consequences of the attack were material to our performance, the occurrence of any similar or other events in the future could compromise our networks, and the information stored there could be accessed, publicly disclosed, lost or stolen. Any such access, disclosure or other loss of information could result in legal claims or proceedings, liability or regulatory penalties under laws protecting the privacy of personal information, and could disrupt our operations and damage our reputation, which could adversely affect our performance. In addition, as security threats continue to evolve and increase in frequency and sophistication, we increasingly are needing to invest additional resources to protect the security of our systems and likely will need to invest even more in the future.

Item 1B.    Unresolved Staff Comments

    None.

Item 1C.    Cybersecurity

    We have an enterprise risk assessment process which specifically addresses risks associated with cybersecurity. Additionally, we have a crisis management plan that outlines the structure, roles, responsibilities and operating procedures to utilize during potentially significant events that could negatively impact the Company. As part of the crisis management plan, we have a cybersecurity incident response plan in place that provides a documented framework for handling high severity security incidents and includes facilitated coordination across multiple functions of the Company. Our incident response plan also includes identifying and responding to material risks from cybersecurity threats associated with our use of third-party service providers. We invest in threat intelligence and are active participants in industry and government forums to strive to improve our overall capabilities with respect to cybersecurity. We routinely perform reviews of threat intelligence and vulnerability management capabilities, while performing simulations and drills at both technical and management levels. We incorporate external expertise in all aspects of our program utilizing best practice guidance from third-party cybersecurity advisors to provide objective assessments of our capabilities. We maintain a cyber liability insurance program, although the coverage may not be sufficient in some circumstances. We also have policies and practices in place to address data privacy regulations. Our cybersecurity program is reviewed and assessed by external information security specialists or by our internal audit group at least annually. Further, we conduct annual cybersecurity awareness training for employees and targeted training for high-risk functions of the Company. We also conduct phishing exercises and correlated education with our employees.

    As part of its risk oversight role, our Audit Committee of the Board of Directors oversees cyber risk, information security and technology risk, including management’s actions to identify, assess, mitigate and remediate material cybersecurity issues and risks. The Audit Committee receives regular reporting several times each year from our Chief Information Security Officer as well as our Chief Information Officer on our technology and cyber risk profile, enterprise cybersecurity program and key enterprise cybersecurity activities.

    We have an information security team, led by our Chief Information Security Officer, that is responsible for assessing and managing cybersecurity risks and monitoring cybersecurity incidents. The team possesses relevant experience in their respective fields as well, as appropriate certifications from various leading certifying bodies. During 2022, we established a Cybersecurity Council comprised of members of our senior leadership team that is regularly briefed on cybersecurity matters and provides input to our overall approach to cybersecurity. Our formal cybersecurity program is modeled after the National Institute of Standards and Technology (“NIST”) Cybersecurity Framework, as well as other global standards and best practices.

    On May 5, 2022, we discovered that we had been subject to a sophisticated ransomware cyberattack. The attack resulted in the temporary closure of most of our production sites and parts operations. A majority of the affected locations resumed operations within approximately two weeks after the attack was discovered. There was some data exfiltration as a result of the attack, and a portion of the exfiltrated data subsequently was released publicly. We do not have significant retail operations, and we do not believe that the exfiltrated data included privacy-protected consumer data or that the exfiltration was consequential. We have invested heavily in maturing our information technology and cybersecurity operations and continue to review and improve our safeguards to minimize our exposure to future attacks. We do not believe the cost of remediation to the impacted systems will be material. To date, the cost of those efforts has not been consequential.
22

Item 2.        Properties

    Our principal manufacturing locations and/or properties as of January 31, 2024 were as follows:
LocationDescription of Property
United States: 
Assumption, IllinoisManufacturing/Sales and Administrative Office
Batavia, IllinoisParts Distribution
Duluth, GeorgiaCorporate Headquarters
Hesston, KansasManufacturing
Jackson, MinnesotaManufacturing
Morton, Illinois
Manufacturing
International: 
Beauvais, France(1)
Manufacturing
Breganze, ItalyManufacturing
Ennery, FranceParts Distribution
Linnavuori, FinlandManufacturing
Hohenmölsen, GermanyManufacturing
Marktoberdorf, GermanyManufacturing
Wolfenbüttel, GermanyManufacturing
Stockerau, AustriaManufacturing
Thisted, DenmarkManufacturing
Suolahti, FinlandManufacturing/Parts Distribution
Canoas, BrazilRegional Headquarters/Manufacturing
Mogi das Cruzes, BrazilManufacturing
Santa Rosa, BrazilManufacturing
Changzhou, ChinaManufacturing
_______________________________________
(1)Includes our joint venture, GIMA, in which we own a 50% interest.

    We consider each of our facilities to be in good condition and adequate for its present use. We believe that we have sufficient capacity to meet our current and anticipated manufacturing requirements.
23

Item 3.        Legal Proceedings

    During 2017, the Company purchased Precision Planting, which provides precision agricultural technology solutions. In 2018, Deere & Company (“Deere”) filed separate complaints in the U.S. District Court of Delaware against the Company and Precision Planting alleging that certain products of those entities infringed certain patents of Deere. The two complaints subsequently were consolidated into a single case, Case No. 1:18-cv-00827-CFC. In July 2022, the case was tried before a jury, which determined that the Company and Precision Planting had not infringed the Deere patents. Following customary post-trial procedures, the Court entered a judgement in the Company’s favor, and Deere appealed the judgment to the U.S. Court of Appeals for the Federal Circuit. The appeal is fully briefed and is awaiting oral arguments before the court. The Company has an indemnity right under the purchase agreement related to the acquisition of Precision Planting from its previous owner. Pursuant to that right, the previous owner of Precision Planting currently is responsible for the litigation costs associated with the complaint and is obligated to reimburse AGCO for some or all of the damages in the event of an adverse outcome in the litigation.

    We are a party to various other legal claims and actions incidental to our business. We believe that none of these claims or actions, either individually or in the aggregate, is material to our business or financial statements as a whole, including our results of operations and financial condition.

Item 4.        Mine Safety Disclosures

    Not Applicable.

24

PART II

Item 5.    Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

    Our common stock is listed on the New York Stock Exchange and trades under the symbol AGCO. We have a history of paying quarterly cash dividends. On April 27, 2023, the Company's Board of Directors approved an increase to its quarterly dividend commencing in the second quarter of 2023 by 21% to $0.29 per common share and declared a special variable dividend of $5.00 per common share that was paid during the second quarter of 2023. While we currently expect a cash dividend to be paid in the future, future dividend payments will depend on our earnings, capital requirements, financial condition, and other factors considered relevant by the Company's Board of Directors.

    As of the close of business on February 20, 2024, the closing stock price was $106.47, and there were 448 stockholders of record (this number does not include stockholders who hold their stock through brokers, banks and other nominees).

Performance Graph

    The following presentation is a line graph of our cumulative total shareholder return on our common stock on an indexed basis as compared to the cumulative total return of the S&P Mid-Cap 400 Index, the MVIS Global Agribusiness Index for the five years ended December 31, 2023. Our total returns in the graph are not necessarily indicative of future performance.

Performance Graph - 2023.jpg


Cumulative Total Return for the Years Ended December 31,
201820192020202120222023
AGCO Corporation$100.00 $140.03 $188.71 $219.15 $273.84 $252.25 
S&P Midcap 400 Index100.00 126.20 143.44 178.95 155.58 181.15 
MVIS Global Agribusiness Index
100.00 121.99 139.93 174.22 160.91 146.98 

The total return assumes that dividends were reinvested and is based on a $100 investment on December 31, 2018.
25

Issuer Purchases of Equity Securities

    The table below sets forth information with respect to purchases of our common stock made by or on behalf of us during the three months ended December 31, 2023:
PeriodTotal Number of Shares PurchasedAverage Price Paid per ShareTotal Number of Shares Purchased as Part of Publicly Announced Plans or Programs
Maximum Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in millions)(2)
October 1, 2023 through
   October 31, 2023
— $— — $110.0 
November 1, 2023 through
   November 30, 2023(1)
371,669 $114.08 371,669 $57.0 
December 1, 2023 through
   December 31, 2023
— $— — $57.0 
Total371,669 $114.08 371,669 $57.0 
___________________________________
(1) In November 2023, we entered into an ASR agreement with a third-party financial institution to repurchase $53.0 million of our common stock. The ASR agreement resulted in the initial delivery of 371,669 shares of our common stock, representing approximately 80% of the shares to be purchased in connection with the transaction. In January 2024, the remaining 82,883 shares under the ASR agreement were delivered. The average price paid per share related to the ASR agreement reflected in the table above was derived using the fair market value of the shares on the date the initial 371,669 shares were delivered. The amount that may yet be purchased under our share repurchase programs, as presented in the above table, was reduced by the entire $53.0 million payment related to the ASR agreement. Refer to Note 16 of our Consolidated Financial Statements contained in Item 8, "Financial Statements and Supplementary Data," for further discussion of this matter.
(2) The remaining authorized amount to be repurchased is $57.0 million, which has no expiration date.


Item 6.          [Reserved]

26

Item 7.        Managements Discussion and Analysis of Financial Condition and Results of Operations

    We are a global leader in the design, manufacture and distribution of agricultural machinery and precision agriculture technology. We sell a full range of agricultural equipment, including tractors, combines, self-propelled sprayers, hay tools, forage equipment, seeding and tillage equipment, implements, replacement parts and grain storage and protein production systems. Our products are widely recognized in the agricultural equipment industry and are marketed under a number of well-known brand names, including Fendt®, GSI®, Massey Ferguson®, Precision Planting® and Valtra®, supported by our FUSE® precision agriculture solutions. We distribute most of our products through a combination of approximately 3,100 dealers and distributors as well as associates and licensees. In addition, we provide retail and wholesale financing through our finance joint ventures with Rabobank.

    We sell our equipment, precision agriculture technology and replacement parts to our independent dealers, distributors and other customers. A large majority of our sales are to independent dealers and distributors that sell our products to end users. To the extent practicable, we attempt to sell products to our dealers and distributors on a level basis throughout the year to reduce the effect of seasonal demands on our manufacturing operations and to minimize our investment in inventories. However, retail sales by dealers to farmers are highly seasonal and are a function of the timing of the planting and harvesting seasons. In certain markets, particularly in North America, there is often a time lag, which varies based on the timing and level of retail demand, between our sale of the equipment to the dealer and the dealer’s sale to a retail customer.


27

Financial Highlights

    The following table sets forth the percentage relationship to net sales of certain items included in our Consolidated Statements of Operations:
Years Ended December 31,
2023
2022
$
% of Net Sales(1)
$
% of Net Sales(1)
Net sales$14,412.4 100.0 %$12,651.4 100.0 %
Cost of goods sold10,635.0 73.8 9,650.1 76.3 
Gross profit3,777.4 26.2 3,001.3 23.7 
Selling, general and administrative expenses1,454.5 10.1 1,189.5 9.4 
Engineering expenses548.8 3.8 444.2 3.5 
Amortization of intangibles57.7 0.4 60.1 0.5 
Impairment charges4.1 — 36.0 0.3 
Restructuring expenses 11.9 0.1 6.1 — 
Income from operations1,700.4 11.8 1,265.4 10.0 
Interest expense, net4.6 — 13.0 0.1 
Other expense, net362.3 2.5 145.2 1.1 
Income before income taxes and equity in net earnings of affiliates1,333.5 9.3 1,107.2 8.8 
Income tax provision230.4 1.6 296.6 2.3 
Income before equity in net earnings of affiliates1,103.1 7.7 810.6 6.4 
Equity in net earnings of affiliates68.2 0.5 64.1 0.5 
Net income1,171.3 8.1 874.7 6.9 
Net loss attributable to noncontrolling interests
0.1 — 14.9 0.1 
Net income attributable to AGCO Corporation and subsidiaries$1,171.4 8.1 %$889.6 7.0 %
___________________________________
(1) Rounding may impact summation of amounts.

2023 Compared to 2022

    Net income attributable to AGCO Corporation and subsidiaries for 2023 was $1,171.4 million, or $15.63 per diluted share, compared to $889.6 million, or $11.87 per diluted share, for 2022.

    Net sales for 2023 were $14,412.4 million, or 13.9% higher than 2022, primarily due to favorable pricing impacts, favorable product mix related to high horsepower tractors, combines, hay tools and application tools and favorable currency impacts. Income from operations was $1,700.4 million in 2023 compared to $1,265.4 million in 2022. The increase in income from operations during 2023 was primarily the result of positive net pricing and favorable product mix, partially offset by higher selling, general and administrative expenses ("SG&A expenses") and engineering expenses.

    We estimate that worldwide average price increases were approximately 10.0% and 11.6% in 2023 and 2022, respectively. Consolidated net sales of tractors and combines, which comprised approximately 64.9% of our net sales in 2023, increased approximately 1.7% in 2023 compared to 2022. Unit sales of tractors and combines decreased approximately 11.7% during 2023 compared to 2022. The primary driver of the decrease in unit sales was lower sales of compact and mid-range tractors. The difference between the unit sales change and the change in net sales was primarily the result of pricing, foreign currency translation and sales mix changes.

    Overall, global production hours increased approximately 3.6% during 2023 compared to 2022. The increase was primarily due to robust market demand as well as easing of supply chain and logistics disruptions experienced in 2022.

28

Results of Operations

    Gross profit as a percentage of net sales increased during 2023 compared to 2022, primarily due to positive net pricing impacts and favorable product mix.

    SG&A expenses as a percentage of net sales, were higher during 2023 compared to 2022. The absolute level of SG&A expenses increased during 2023 primarily due to higher compensation costs and Trimble Ag joint venture-related transaction costs. We recorded stock compensation expense of $44.6 million and $32.7 million during 2023 and 2022, respectively, within SG&A expenses, as is more fully explained in Note 15 of our Consolidated Financial Statements.

    Engineering expenses as a percentage of net sales, were higher during 2023 compared to 2022, primarily driven by an increase in product innovation and other technology investments.

    We recorded impairment charges of $4.1 million and $36.0 million during 2023 and 2022, respectively. During the fourth quarter of 2023, we recorded an impairment charge of $4.1 million related to the impairment of certain patents and technology amortizing intangible assets from a prior acquisition. In 2022, as a consequence of the conflict between Russia and Ukraine, we recorded asset impairment charges of $36.0 million related to our Russian distribution joint venture. Refer to Note 12 of our Consolidated Financial Statements for additional information.

    We recorded restructuring expenses of $11.9 million and $6.1 million during 2023 and 2022, respectively. The restructuring expenses primarily related to severance and other related costs associated with the rationalization of certain South American, North American, European, African and Asian manufacturing facilities and administrative offices. See Note 12 of our Consolidated Financial Statements.

    Interest expense, net was $4.6 million for 2023 compared to $13.0 million for 2022 resulting primarily from an increase in interest income, partially offset by an increase in interest expense from increased debt levels and interest rates in 2023 as compared to 2022. See “Liquidity and Capital Resources” for further information on our available funding.

    Other expense, net was $362.3 million in 2023 compared to $145.2 million in 2022. The increase was primarily driven by foreign currency exchanges losses which where approximately $202.1 million and $64.1 million in 2023 and 2022, respectively. These losses related primarily to the devaluation of the Argentine peso and the Turkish lira during 2023. In December 2023, the central bank of Argentina adjusted the official foreign currency exchange rate for the Argentine peso from approximately 366.5 to approximately 800.0 pesos to United States dollar for substantially all goods, significantly devaluing the currency relative to the United States dollar. The December 2023 impact of the devaluation and remeasurement of net monetary assets was approximately $79.9 million. Losses on sales of receivables, primarily related to our accounts receivable sales agreements with our finance joint ventures in North America, Europe and Brazil and included in "Other expense, net," were approximately $148.4 million and $71.1 million in 2023 and 2022, respectively. The increase in losses was primarily the result of higher sales of accounts receivable and higher interest rates in 2023 as compared to 2022. The increases in "Other expense, net" were partially offset by business interruption insurance recoveries of $20.0 million related to the cyber attack in 2022.

    We recorded an income tax provision of $230.4 million in 2023 compared to $296.6 million in 2022. Our tax provision and effective tax rate are impacted by the differing tax rates of the various tax jurisdictions in which we operate, permanent differences for items treated differently for financial accounting and income tax purposes, losses in jurisdictions where no income tax benefit is recorded, and provisions for unrecognized income tax benefits related to uncertain tax positions. Our 2023 income tax provision includes a one-time benefit of $112.3 million related to the recognition of a deferred tax asset of $197.7 million, net of a valuation allowance of $85.4 million, related to the finalization of negotiations surrounding the application of Swiss Tax reform legislation enacted in 2020. This benefit was partially offset by a provision of approximately $26.4 million that we recorded in 2023 associated with our enrollment in a Brazilian tax amnesty program as is more fully described in Note 19 of our Consolidated Financial Statements. Refer to Note 19 of our Consolidated Financial Statements for further information.

    Equity in net earnings of affiliates, which is primarily comprised of income from our AGCO Finance joint ventures, was $68.2 million in 2023 compared to $64.1 million in 2022. The increase was primarily due to higher earnings in our finance joint ventures. During the first quarter of 2022, we recorded a write-down of our investment in our Russian finance joint venture of approximately $4.8 million. The Russian finance joint venture was sold during the three months ended December 31, 2022. Refer to Note 9 of our Consolidated Financial Statements for further information.

    Net loss attributable to noncontrolling interests was $0.1 million in 2023 compared to $14.9 million in 2022. The loss during 2022 related to the sale of our Russian distribution joint venture.
29


Results of Operations - Segment Information

    The Company has four operating segments which are also its reportable segments which consist of the Europe/Middle East ("EME"), North America, South America and Asia/Pacific/Africa ("APA") regions. The Company’s reportable segments are geography based and distribute a full range of agricultural machinery and precision agriculture technology. The Company evaluates segment performance primarily based on income from operations. Sales for each segment are based on the location of the third-party customer. The Company’s selling, general and administrative expenses and engineering expenses are charged to each segment based on the region and division where the expenses are incurred. As a result, the components of income from operations for one segment may not be comparable to another segment.

    The following table sets forth, for the year ended December 31, 2023, the impact to net sales of currency translation by geographical segment (in millions, except percentages):
ChangeChange due to Currency Translation
20232022$%$%
EME$7,540.5 $6,447.3 $1,093.2 17.0 %$(18.3)(0.3)%
North America3,752.7 3,175.1 577.6 18.2 %5.3 0.2 %
South America2,234.2 2,121.6 112.6 5.3 %56.8 2.7 %
APA885.0 907.4 (22.4)(2.5)%(30.8)(3.4)%
$14,412.4 $12,651.4 $1,761.0 13.9 %$13.0 0.1 %


EME
Change
20232022$
Net Sales
$7,540.5 $6,447.3 $1,093.2 
Income from Operations
1,100.6 784.1 316.5 

    Net sales in EME increased in 2023 compared to 2022, primarily due to positive pricing impacts, favorable product mix related to mid-range and high-horsepower tractors and higher replacement parts sales, partially offset by unfavorable foreign currency translation.

    Income from operations increased by $316.5 million in 2023 compared to 2022, driven primarily by positive net pricing and favorable product mix related to mid-range and high-horsepower tractors, partially offset by higher SG&A expenses primarily related to higher compensation costs.

North America
Change
20232022$
Net Sales
$3,752.7 $3,175.1 $577.6 
Income from Operations
459.3 278.8 180.5 

    Net sales in North America increased in 2023 compared to 2022, primarily due to positive pricing impacts and favorable product mix related to high-horsepower tractors, application equipment and combines. The expansion of Fendt product sales in North America was a key driver of the favorable product mix.

    Income from operations increased by $180.5 million compared to the prior year as a result of positive net pricing and favorable product mix related to significant growth in Fendt products as well as improved margins on our grain and protein product sales. These increases were partially offset by higher warranty costs and higher SG&A expenses primarily related to higher compensation costs.

30

South America
Change
20232022$
Net Sales
$2,234.2 $2,121.6 $112.6 
Income from Operations
386.4 373.9 12.5 

    Net sales increased in South America in 2023 compared to 2022, primarily due to positive pricing impacts, favorable product mix related to high-horsepower and mid-range tractors and favorable foreign currency translation. These increases were partially offset by modest declines in sales related to grain and protein products.

    Income from operations increased $12.5 million in 2023 compared to 2022 despite higher retail incentives in the fourth quarter as a result of positive net pricing and favorable product mix related to high-horsepower tractors and combines, partially offset by a decrease in sales of grain and protein products and higher SG&A expenses primarily related to higher dealer termination charges and higher compensation costs.

APA
Change
20232022$
Net Sales
$885.0 $907.4 $(22.4)
Income from Operations
77.3 116.9 (39.6)

    Net sales decreased in APA in 2023 compared to 2022, primarily due to unfavorable currency translation, lower sales volumes of mid-range tractors and combines and lower sales of grain and protein products. Higher sales in Australia were mostly offset by lower sales in Japan. These decreases were partially offset by positive pricing impacts and increased sales of precision agriculture equipment.

    Income from operations decreased $39.6 million in 2023 compared to 2022, primarily due to lower sales volumes of mid-range tractors and combines, higher warranty costs and higher SG&A expenses primarily related to higher compensation costs. These decreases were partially offset by positive net pricing.

2022 Compared to 2021

    A comparison of the results of operations for 2022 versus that of 2021 was included in our Annual Report on Form 10-K for the year ended December 31, 2022.

Outlook

    Our operations are subject to the cyclical nature of the agricultural industry. Sales of our equipment are affected by, among other things, changes in farm income, farm land values and debt levels, financing costs, acreage planted, crop yields, weather conditions, the demand for agricultural commodities, commodity and protein prices, agricultural product demand and general economic conditions and government policies and subsidies.

    Global industry demand for farm equipment, driven by farm income, is expected to be modestly lower during 2024 in most major markets compared to 2023. Our net sales are expected to moderately decrease in 2024 compared to 2023, resulting from lower sales volumes, offset in part by modest positive pricing. Gross and operating margins are expected to moderately decrease from 2023 levels, reflecting the impact of lower net sales and production volumes and relatively flat investments in engineering and other technology efforts to support our precision agriculture and digital initiatives.

    Our outlook is based on current assumptions regarding a number of factors including demand, currency stability, pricing and market share gains. If our assumptions are incorrect, or other issues arise or return, such as a worsening of our supply chain, our results of operations will be adversely impacted. Refer to “Risk Factors” in Item 1A for further discussion.



31

Liquidity and Capital Resources

    Our financing requirements are subject to variations due to seasonal changes in inventory and receivable levels. Internally generated funds are supplemented when necessary from external sources, primarily our credit facility and accounts receivable sales agreement facilities, subject to the discussion below with respect to financing of the Trimble Ag joint venture transaction. Additional information regarding our indebtedness is contained in Note 11 to the Consolidated Financial Statements contained in Item 8, “Financial Statements and Supplementary Data." We believe that the following facilities listed below, together with available cash and internally generated funds, and assuming customary renewals and replacements, will be sufficient to support our working capital, capital expenditures and debt service requirements for the foreseeable future (in millions):
December 31, 2023(1)
Credit facility, expires 2027$— 
1.002% EIB Senior term loan due 2025
276.7 
EIB Senior Term Loan due 2029
276.7 
Senior term loans due between 2025 and 2028
162.1 
0.800% Senior Notes Due 2028
664.0 
Other long-term debt3.1 
____________________________________
(1) The amounts above are gross of debt issuance costs of an aggregate amount of approximately $3.1 million.

    The Company has a credit facility providing for a $1.25 billion multi-currency unsecured revolving credit facility (“Credit Facility”) that matures on December 19, 2027. As of December 31, 2023, the Company had no outstanding borrowings under the revolving credit facility and had the ability to borrow $1,155.0 million.

    In addition, the Company has an uncommitted revolving credit facility that allows the Company to borrow up to €100.0 million (or approximately $110.7 million as of December 31, 2023). The credit facility expires on December 31, 2026. As of December 31, 2023, the Company had no outstanding borrowings under the revolving credit facility.

    On September 29, 2023, the Company entered into a multi-currency Finance Contract with the European Investment Bank ("EIB") permitting the Company to borrow up to €250.0 million, to fund up to 50% of certain investments in research, development and innovation primarily in Germany, France and Finland during the period from 2023 through 2026. On October 26, 2023, the Company borrowed €250.0 million (approximately $263.7 million) under the arrangement. The loan matures on October 26, 2029. As of December 31, 2023, there was €250.0 million (approximately $276.7 million) outstanding under the EIB Senior Term Loan due 2029.

    Subsequent to the end of the year, on January 25, 2024, the Company entered into an additional multi-currency Finance Contract with EIB permitting the Company to borrow up to €170.0 million, for which the proceeds will be used in a similar manner as described for the EIB Senior Term Loan due 2029 above. On February 15, 2024, the Company borrowed €170.0 million (approximately $183.2 million) under the arrangement. The loan matures on February 15, 2030.

    In connection with the planned Trimble Ag joint venture, on September 28, 2023, the Company entered into a bridge facility commitment letter with Morgan Stanley pursuant to which Morgan Stanley has committed to provide, subject to the terms and conditions set forth therein, a $2.0 billion senior unsecured 364-day bridge facility. There were no amounts outstanding under the Bridge Facility as of December 31, 2023. Subject to market conditions, the Company intends to finance the planned Joint Venture transaction through a combination of existing liquidity, ongoing cash flows from operations and the issuance of new debt and not to utilize funding pursuant to the commitment letter. In December 2023, the Company amended the Credit Facility to allow for incremental borrowings in the form of a delayed draw term loan facility in an aggregate principal amount of $250.0 million ("Term Loan Facility"). Borrowings under the Term Loan Facility bear interest at the same rate and margin as the Credit Facility. There are currently no amounts outstanding under the Term Loan Facility. The Company expects to draw on the Term Loan Facility in conjunction with the close of the Trimble Ag joint venture. The amount available under the Bridge Facility was reduced by $250.0 million upon the Company's entry into the Term Loan Facility in December 2023. In January 2024, the Company and its lenders agreed to further reduce the Bridge Facility by $300.0 million as a result of cash flows generated in the quarter ended December 31,2023.

    We are in compliance with the financial covenants contained in these facilities and expect to continue to maintain such compliance. Should we ever encounter difficulties, our historical relationship with our lenders has been strong and we anticipate
32

their continued long-term support of our business. Refer to Note 11 to the Consolidated Financial Statements contained in Item 8, “Financial Statements and Supplementary Data,” for additional information regarding our current facilities, including the financial covenants contained in each debt instrument.

    Our accounts receivable sales agreements in North America, Europe and Brazil permit the sale, on an ongoing basis, of a majority of our receivables to our U.S., Canadian, European and Brazilian finance joint ventures. The sales of all receivables are without recourse to us. We do not service the receivables after the sales occur, and we do not maintain any direct retained interest in the receivables. These agreements are accounted for as off-balance sheet transactions. For the years ended December 31, 2023 and 2022, the cash received from receivables sold under the U.S., Canadian, European and Brazilian accounts receivable sales agreements was approximately $2.5 billion and $1.8 billion, respectively.

    In addition, we sell certain trade receivables under factoring arrangements to other financial institutions around the world. For the years ended December 31, 2023 and 2022, the cash received from these arrangements was approximately $254.1 million and $226.0 million, respectively.

    Our finance joint ventures in Europe, Brazil and Australia also provide wholesale financing directly to our dealers. As of December 31, 2023 and 2022, these finance joint ventures had approximately $211.3 million and $69.5 million, respectively, of outstanding accounts receivable associated with these arrangements. These arrangements are accounted for as off-balance sheet transactions. The total finance portfolio in our finance joint ventures was approximately $14.1 billion and $11.8 billion as of December 31, 2023 and 2022, respectively. The total finance portfolio as of December 31, 2023 and 2022 included approximately $10.8 billion and $9.5 billion, respectively, of retail receivables and $3.3 billion and $2.3 billion of wholesale receivables from AGCO dealers as of December 31, 2023 and 2022, respectively.

    In order to efficiently manage our liquidity, we generally pay vendors in accordance with negotiated terms. To enable vendors to obtain payment in advance of our payment due dates to them, we have established programs in certain markets with financial institutions under which the vendors have the option to be paid by the financial institutions earlier than the payment due dates. Should we not be able to negotiate extended payment terms with our vendors, or should financial institutions no longer be willing to participate in early payment programs with us, we would expect to have sufficient liquidity to timely pay our vendors without any material impact on us or our financial position. As of December 31, 2023 and 2022, the amount outstanding that remains unpaid to the banks or other intermediaries associated with these programs totaled approximately $82.7 million and $121.5 million, respectively. Refer to Note 10 to the Consolidated Financial Statements contained in Item 8, “Financial Statements and Supplementary Data,” for further discussion.

    Our debt to capitalization ratio, which is total indebtedness divided by the sum of total indebtedness and stockholders’ equity, was 23.0% at December 31, 2023 compared to 27.3% at December 31, 2022.

Cash Flows

    Cash flows provided by operating activities were approximately $1,103.1 million during 2023 compared to approximately $838.2 million during 2022. The increase during 2023 compared to 2022 was primarily due to higher net income in 2023.

    Our working capital requirements are seasonal, with investments in working capital typically building in the first half of the year and then reducing in the second half of the year. We had $1,997.2 million in working capital at December 31, 2023, as compared with $1,651.3 million at December 31, 2022. Accounts receivable and inventories, combined, at December 31, 2023 were approximately $635.0 million higher than at December 31, 2022, primarily due to positive pricing, lower sales of accounts receivable under our factoring programs at the end of the year and higher finished goods inventory levels.

    Capital expenditures were approximately $518.1 million compared to $388.3 million for the same period in 2022, primarily related to high capital investments related to capacity increases and precision agriculture initiatives.

Share Repurchase Program and Dividends

    In November 2023, the Company entered into an accelerated share repurchase (“ASR”) agreement with a financial institution to repurchase $53.0 million of shares of our common stock. We received approximately 371,669 shares associated with this transaction as of December 31, 2023. In January 2024, we received an additional 82,883 shares upon final settlement of our November 2023 ASR agreement. All shares received under the ASR agreements were retired upon receipt, and the excess of the purchase price over par value per share was recorded to a combination of “Additional paid-in capital” and “Retained earnings” within the our Consolidated Balance Sheets. We did not purchase any shares directly or enter into any
33

accelerated share repurchase agreements during 2022. As of December 31, 2023, the remaining amount authorized to be repurchased under board-approved share repurchase authorizations was approximately $57.0 million, which has no expiration date. In addition, on April 27, 2023, our Board of Directors approved an increase to our quarterly dividend commencing in the second quarter of 2023 by 21% to $0.29 per common share and declared a special variable dividend of $5.00 per common share that was paid during the second quarter of 2023. During 2022, our Board of Directors declared and we paid a special variable dividend of $4.50 per common share. On January 18, 2024, the Company approved the quarterly dividend of $0.29 per common share to be paid on March 15, 2024, to all stockholders of record as of the close of business February 15, 2024.

Contractual Obligations and Cash Requirements

    Our material cash requirements include the following contractual and other obligations:

    Indebtedness – As of December 31, 2023, we had approximately $14.1 million of payments due within the year ending December 31, 2024, related to indebtedness and certain short-term obligations, in addition to approximately $56.1 million of interest payments associated with indebtedness we expect to pay during 2024. This does not include interest payments related to future indebtedness expected to finance the planned Trimble Ag joint venture. Our projected amount of interest payments includes assumptions regarding the future fluctuations in interest rates, as well as borrowings under our revolving credit facility and other variable debt instruments. Indebtedness amounts reflect the principal amount of our EIB senior term loans, senior notes, credit facility and certain short-term borrowings, gross of any debt issuance costs. Refer to the discussion above and Note 11 of the Consolidated Financial Statements for additional information regarding our indebtedness.

    Finance and operating lease obligations – As of December 31, 2023, we had approximately $0.7 million and $52.8 million of payments due during the year ending December 31, 2024, related to finance and operating lease obligations, respectively. Refer to Note 23 of the Consolidated Financial Statements for additional information regarding our lease obligations.

    Unconditional purchase obligations – As of December 31, 2023, we had approximately $263.7 million of outstanding purchase obligations payable during the year ending December 31, 2024. The Company's unconditional purchase obligations are primarily payable within 12 months.

    Other short-term and long-term obligations – As of December 31, 2023, we had approximately $9.9 million of income tax liabilities related to uncertain income tax provisions connected with ongoing income tax audits in various jurisdictions that we expects to pay or settle within the next 12 months. Additionally, we had approximately $16.7 million of estimated future minimum contribution requirements under our U.S. and non-U.S. defined benefit pension and postretirement plans due during the year ending December 31, 2024. Refer to Notes 19 and 20 of the Consolidated Financial Statements for additional information regarding our uncertain tax positions and pension and postretirement plans, respectively. These obligations comprise a majority of our other short-term and long-term obligations.

Commitments and Off-Balance Sheet Arrangements

Guarantees

    At December 31, 2023, the Company had outstanding guarantees issued to its Argentine finance joint venture, AGCO Capital Argentina S.A. (“AGCO Capital”) of approximately $42.2 million. Such guarantees generally obligate the Company to repay outstanding finance obligations owed to AGCO Capital if end users default on such loans to the extent that, due to non-Credit Risk, the end users are not able, or not required, to pay their loans, or are required to pay in a different currency than the one agreed in their loan. The Company also has obligations to guarantee indebtedness owed to certain of its finance joint ventures if dealers or end users default on loans. Losses under such guarantees historically have been insignificant. The Company believes the credit risk associated with these guarantees is not material.

    In addition, at December 31, 2023, the Company accrued approximately $13.8 million of outstanding guarantees of residual values that may be owed to its finance joint ventures in the United States and Canada upon expiration of certain eligible operating leases between the finance joint ventures and end users. The maximum potential amount of future payments under the guarantees is approximately $182.1 million.

Other

    At December 31, 2023, we had outstanding designated and non-designated foreign exchange contracts with a gross notional amount of approximately $3,387.3 million. The outstanding contracts as of December 31, 2023 range in maturity
34

through December 2024. We also had outstanding designated steel commodity contracts with a gross notional amount of approximately $2.5 million that range in maturity through June 2024. See Note 14 of our Consolidated Financial Statements for additional information.

    As discussed above, we sell a majority of our wholesale accounts receivable in North America, Europe and Brazil to our U.S., Canadian, European and Brazilian finance joint ventures. We also sell certain accounts receivable under factoring arrangements to financial institutions around the world. We have determined that these facilities should be accounted for as off-balance sheet transactions.

Contingencies

    During 2017, the Company purchased Precision Planting, which provides precision agricultural technology solutions. In 2018, Deere & Company (“Deere”) filed separate complaints in the U.S. District Court of Delaware against the Company and Precision Planting alleging that certain products of those entities infringed certain patents of Deere. The two complaints subsequently were consolidated into a single case, Case No. 1:18-cv-00827-CFC. In July 2022, the case was tried before a jury, which determined that the Company and Precision Planting had not infringed the Deere patents. Following customary post-trial procedures, the Court entered a judgement in the Company’s favor, and Deere appealed the judgment to the U.S. Court of Appeals for the Federal Circuit. The appeal is fully briefed and is awaiting oral arguments before the court. The Company has an indemnity right under the purchase agreement related to the acquisition of Precision Planting from its previous owner. Pursuant to that right, the previous owner of Precision Planting currently is responsible for the litigation costs associated with the complaint and is obligated to reimburse AGCO for some or all of the damages in the event of an adverse outcome in the litigation.

    We are party to various claims and lawsuits arising in the normal course of business. We closely monitor these claims and lawsuits and frequently consult with our legal counsel to determine whether they may, when resolved, have a material adverse effect on our financial position or results of operations and accrue and/or disclose loss contingencies as appropriate. See Note 22 of our Consolidated Financial Statements for further information.

Related Party Transactions

    In the ordinary course of business, we engage in transactions with related parties. See Note 18 of our Consolidated Financial Statements for information regarding related party transactions and their impact to our consolidated results of operations and financial position.

Foreign Currency Risk Management

    We have significant manufacturing locations in the United States, France, Germany, Finland, Italy, China and Brazil, and we purchase a portion of our tractors, combines and components from third-party foreign suppliers, primarily in various European countries and in Japan. We also sell products in approximately 140 countries throughout the world. The majority of our net sales outside the United States are denominated in the currency of the customer location, with the exception of sales in Middle East, Africa, Asia and parts of South America, where net sales are primarily denominated in British pounds, Euros or the United States dollar.

    The Company has a wholly-owned subsidiary in Turkey that distributes agricultural equipment and replacement parts. On the basis of available data related to inflation indices and as a result of the devaluation of the Turkish lira relative to the United States dollar, the Turkish economy was determined to be highly inflationary during 2022. A highly inflationary economy is one where the cumulative inflation rate for the three years preceding the beginning of the reporting period, including interim reporting periods, is in excess of 100 percent. For subsidiaries operating in highly inflationary economies, the United States dollar is the functional currency. Remeasurement adjustments for financial statements in highly inflationary economies and other transactional exchange gains and losses are reported in "Other expense, net" within our Consolidated Statements of Operations. For the year ended December 31, 2023, the Company's wholly-owned subsidiary in Turkey had net sales of approximately $394.6 million and total assets of approximately 4.5 billion Turkish lira (or approximately $152.4 million). The monetary assets and liabilities denominated in the Turkish lira were approximately 4.2 billion Turkish lira (or approximately $142.7 million) and approximately 3.4 billion Turkish lira (or approximately $116.3 million), respectively, as of December 31, 2023. The monetary assets and liabilities were remeasured into United States dollar based on exchange rates as of December 31, 2023.

    We also are subject to the risk of the imposition of limitations by governments on international transfers of funds. In recent years, the Argentine government has substantially limited the ability of companies to transfer funds out of Argentina. As
35

a consequence of these limitations, the spread between the official government exchange rate and the exchange rates resulting implicitly from certain capital market operations, usually effected to obtain United States dollars, had broadened significantly. Argentina's economy was determined to be highly inflationary during 2018. In December 2023, the central bank of Argentina adjusted the official foreign currency exchange rate for the Argentine peso, significantly devaluing the currency relative to the United States dollar. The December 2023 impact of the devaluation and remeasurement of net monetary assets was approximately $79.9 million. The Company has a wholly-owned subsidiary in Argentina that assembles and distributes agricultural equipment and replacement parts. For the year ended December 31, 2023, the Company's wholly-owned subsidiary in Argentina had net sales of approximately $204.9 million and total assets of approximately 194.9 billion pesos (or approximately $233.9 million). The monetary assets of the Company's operations in Argentina denominated in pesos at the official government rate were approximately 68.3 billion pesos (or approximately $82.0 million), inclusive of approximately 27.7 billion pesos (or approximately $33.3 million) in cash and cash equivalents, as of December 31, 2023. The monetary liabilities of the Company's operations in Argentina denominated in pesos at the official government rate were approximately 12.4 billion pesos (or approximately $14.9 million) as of December 31, 2023. The monetary assets and liabilities were remeasured into United States dollars based on exchange rates as of December 31, 2023. The Company's finance joint venture in Argentina, AGCO Capital has net monetary assets denominated in pesos at the official government rate of approximately 11.0 billion (or approximately $13.2 million) as of December 31, 2023, of which a majority is cash and cash equivalents. All gains and losses resulting from AGCO Capital's remeasurement of its monetary asset and liabilities are reported in “Equity in net earnings of affiliates” within our Consolidated Statements of Operations. If limitations on transfer of funds remain, we may be subject to future losses on the net monetary assets described above.

    We manage our transactional foreign currency exposure by hedging foreign currency cash flow forecasts and commitments arising from the anticipated settlement of receivables and payables and from future purchases and sales. Where naturally offsetting currency positions do not occur, we hedge certain, but not all, of our exposures through the use of foreign currency contracts. Our translation exposure resulting from translating the financial statements of foreign subsidiaries into United States dollars may be partially hedged from time to time. When practical, this translation impact is reduced by financing local operations with local borrowings. Our hedging policy prohibits use of foreign currency contracts for speculative trading purposes.

    The total notional value of our foreign currency instruments was $3,687.3 million and $4,318.8 million, including $300.0 million and $300.0 million related to net investment hedges, as of December 31, 2023 and 2022, respectively, inclusive of both those instruments that are designated and qualified for hedge accounting and non-designated derivative instruments. We enter into cash flow hedges to minimize the variability in cash flows of assets or liabilities or forecasted transactions caused by fluctuations in foreign currency exchange rates, and we enter into foreign currency contracts to economically hedge receivables and payables on our balance sheets that are denominated in foreign currencies other than the functional currency. In addition, we use derivative and non-derivative instruments to hedge a portion of our net investment in foreign operations against adverse movements in exchange rates. See Note 14 of our Consolidated Financial Statements for further information about our hedging transactions and derivative instruments.

    Assuming a 10% change relative to the currency of the hedge contracts, the fair value of the foreign currency instruments could be negatively impacted by approximately $26.5 million as of December 31, 2023. Due to the fact that these instruments are primarily entered into for hedging purposes, the gains or losses on the contracts would largely be offset by losses and gains on the underlying firm commitment or forecasted transaction. The gains and losses on the Company’s net investment in the designated foreign operations driven by changes in foreign exchange rates would largely be offset by movements in the fair value of the cross currency swap contracts or foreign currency denominated debt.

Interest Rate Risk

    Our interest expense is, in part, sensitive to the general level of interest rates. We manage our exposure to interest rate risk through our mix of floating rate and fixed rate debt. From time to time, we enter into interest rate swap agreements to manage our exposure to interest rate fluctuations. See Notes 11 and 14 of our Consolidated Financial Statements for additional information.

    Based on our floating rate debt and our accounts receivable sales facilities outstanding at December 31, 2023, a 10% increase in interest rates, would have increased, collectively, “Interest expense, net” and “Other expense, net” for the year ended December 31, 2023, by approximately $13.7 million.




36

Recent Accounting Pronouncements

    See Note 1 of our Consolidated Financial Statements for information regarding recent accounting pronouncements and their impact to our consolidated results of operations and financial position.

Critical Accounting Estimates

    We prepare our Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles. In the preparation of these financial statements, we make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The significant accounting policies followed in the preparation of the financial statements are detailed in Note 1 of our Consolidated Financial Statements contained in Item 8, “Financial Statements and Supplementary Data.” We believe that our application of the policies discussed below involves significant levels of judgment, estimates and complexity.

    Due to the levels of judgment, complexity and period of time over which many of these items are resolved, actual results could differ from those estimated at the time of preparation of the financial statements. Adjustments to these estimates would impact our financial position and future results of operations.

Discount and Sales Incentive Allowances

    We provide various volume bonus and sales incentive programs with respect to our products. These sales incentive programs include reductions in invoice prices, reductions in retail financing rates, dealer commissions and dealer incentive allowances. In most cases, incentive programs are established and communicated to our dealers on a quarterly basis. The incentives are paid either at the time of the cash settlement of the receivable (which is generally at the time of retail sale), at the time of retail financing, at the time of warranty registration, or at a subsequent time based on dealer purchase volumes. The incentive programs are product line specific and generally do not vary by dealer. The cost of sales incentives associated with dealer commissions and dealer incentive allowances is estimated based upon the terms of the programs and historical experience, is based on a percentage of the sales price, and estimates for sales incentives are made and recorded at the time of sale for expected incentive programs using the expected value method. These estimates are reassessed each reporting period and are revised in the event of subsequent modifications to incentive programs, as they are communicated to dealers. The related provisions and accruals are made on a product or product-line basis and are monitored for adequacy and revised at least quarterly in the event of subsequent modifications to the programs. Interest rate subsidy payments, which are a reduction in retail financing rates, are recorded in the same manner as dealer commissions and dealer incentive allowances. Volume discounts are estimated and recognized based on historical experience, and related reserves are monitored and adjusted based on actual dealer purchase volumes and the dealers’ progress towards achieving specified cumulative target levels. Estimates of these incentives are based on the terms of the programs and historical experience. All incentive programs are recorded and presented as a reduction of revenue, due to the fact that we do not receive a distinct good or service in exchange for the consideration provided. In the United States and Canada, reserves for incentive programs related to accounts receivable not sold to our U.S. and Canadian finance joint ventures are recorded as “Accounts receivable allowances” within our Consolidated Balance Sheets due to the fact that the incentives are paid through a reduction of future cash settlement of the receivable. Globally, reserves for incentive programs that will be paid in cash or credit memos, as is the case with most of our volume discount programs, as well as sales incentives associated with accounts receivable sold to our finance joint ventures, are recorded within “Accrued expenses” within our Consolidated Balance Sheets.

    At December 31, 2023, we had recorded an allowance for discounts and sales incentives of approximately $1,008.3 million that will be paid either through a reduction of future cash settlements of receivables and through credit memos to our dealers or through reductions in retail financing rates paid to our finance joint ventures. If we were to allow an additional 1% of sales incentives and discounts at the time of retail sale for those sales subject to such discount programs, our reserve would increase by approximately $41.5 million as of December 31, 2023. Conversely, if we were to decrease our sales incentives and discounts by 1% at the time of retail sale, our reserve would decrease by approximately $41.5 million as of December 31, 2023.

Deferred Income Taxes and Uncertain Income Tax Positions

    We recorded an income tax provision of $230.4 million in 2023 compared to $296.6 million in 2022 and $108.4 million in 2021. Our tax provision and effective tax rate are impacted by the differing tax rates of the various tax jurisdictions in which we operate, permanent differences for items treated differently for financial accounting and income tax purposes, losses in jurisdictions where no income tax benefit is recorded and provisions for unrecognized income tax
37

benefits related to uncertain tax positions. The provision for income taxes involves a significant amount of management judgment regarding interpretation of relevant facts and laws in the jurisdictions in which we operate. Future changes in applicable laws, projected levels of taxable income, and tax planning could change the effective tax rate and tax balances recorded by us. In addition, tax authorities periodically review income tax returns filed by us and can raise issues regarding our filing positions, timing and amount of income or deductions, and the allocation of income among the jurisdictions in which we operate. A significant period of time may elapse between the filing of an income tax return and the ultimate resolution of an issue raised by a revenue authority with respect to that return. We believe that we have adequately provided for any reasonably foreseeable resolution of these matters.

    At December 31, 2023 and 2022, we had gross deferred tax assets of $634.2 million and $301.2 million, respectively, including $42.1 million and $45.9 million, respectively, related to net operating loss carryforwards. We maintain a valuation allowance to reserve a portion of our net deferred tax assets in the U.S. and certain foreign jurisdictions. A valuation allowance is established when it is more likely than not that some portion or all of the deferred tax assets may not be realized. At December 31, 2023 and 2022, we had total valuation allowances as an offset to our gross deferred tax assets of $149.8 million and $47.3 million, respectively. These valuation allowances are held against deferred tax assets (including net operating loss carryforwards and certain other tax attributes) in the U.S and certain foreign jurisdictions. Realization of the remaining deferred tax assets as of December 31, 2023 depends on generating sufficient taxable income in future periods, net of reversing deferred tax liabilities. We believe it is more likely than not that the remaining net deferred tax assets should be able to be realized.

    We recognize income tax benefits from uncertain tax positions only when there is a more than 50% likelihood that the tax positions will be sustained upon examination by the taxing authorities based on the technical merits of the positions. As of December 31, 2023 and 2022, we had approximately $351.2 million and $281.7 million, respectively, of gross unrecognized tax benefits, all of which would impact our effective tax rate if recognized. As of December 31, 2023 and 2022, we had approximately $9.9 million and $10.4 million, respectively, of current accrued taxes related to uncertain income tax positions connected with ongoing tax audits in various jurisdictions that we expect to settle or pay in the next 12 months. At December 31, 2023 and 2022, the Company had approximately $344.2 million and $274.1 million, respectively, of accrued taxes reflected in “Other noncurrent liabilities”, and approximately $2.9 million and $2.8 million of deferred tax assets, respectively, related to uncertain tax positions that it expects to settle or pay beyond 12 months, reflected in “Deferred tax assets” in the Company’s Consolidated Balance Sheets. We recognize interest and penalties related to uncertain income tax positions in income tax expense. As of December 31, 2023 and 2022, we had accrued interest and penalties related to unrecognized tax benefits of approximately $27.9 million and $25.8 million, respectively. See Note 19 of our Consolidated Financial Statements for further discussion of our uncertain income tax positions.

Pensions

    We sponsor defined benefit pension plans covering certain employees, principally in the United Kingdom, the United States, Germany, Switzerland, Finland, France, Norway and Argentina. Our primary plans cover certain employees in the United States and the United Kingdom.

    In the United States, we sponsor a funded, qualified defined benefit pension plan for our salaried employees, as well as a separate funded qualified defined benefit pension plan for our hourly employees. Both plans are closed to new entrants and frozen, and we fund at least the minimum contributions required under the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code to both plans. Additionally, as of December 31, 2023, we amended and merged the defined benefit plans for our hourly and salaried employees into one plan (the "Plan") and subsequently terminated the Plan effective December 31, 2023, subject to the approval by the Pension Benefit Guaranty Corporation (the “PBGC”). Following the approval of the Plan’s termination by the PBGC, the benefits of all participants and beneficiaries will be satisfied in full through cash distributions to participants, payment to the PBGC, or the purchase of annuities under a group annuity contract. In addition, we maintain an unfunded, nonqualified defined benefit pension plan for certain senior executives, which is our Executive Nonqualified Pension Plan (“ENPP”). The ENPP also is closed to new entrants, and, during 2021, we amended the ENPP to freeze future benefit accruals as of December 31, 2024 and to eliminate a lifetime annuity feature for participants reaching age 65 subsequent to December 31, 2022.

    In the United Kingdom, we sponsor a funded defined benefit pension plan that provides an annuity benefit based on participants’ final average earnings and service. Participation in this plan is limited to certain older, longer service employees and existing retirees. This plan is closed to new participants.

    See Note 20 of our Consolidated Financial Statements for additional information regarding costs and assumptions for employee retirement benefits.

38

    Nature of Estimates Required. The measurement date for all of our benefit plans is December 31. The measurement of our pension obligations, costs and liabilities is dependent on a variety of assumptions provided by management and used by our actuaries. These assumptions include estimates of the present value of projected future pension payments to all plan participants, taking into consideration the likelihood of potential future events such as salary increases and demographic experience. These assumptions may have an effect on the amount and timing of future contributions.

    Assumptions and Approach Used. The assumptions used in developing the required estimates include, but are not limited to, the following key factors:
•   Discount rates•   Inflation
•   Salary growth•   Expected return on plan assets
•   Retirement rates and ages•   Mortality rates

    For the years ended December 31, 2023 and 2022, we used a globally consistent methodology to set the discount rate in the countries where our largest benefit obligations exist. In the United States, the United Kingdom and the Euro Zone, we constructed a hypothetical bond portfolio of high-quality corporate bonds and then applied the cash flows of our benefit plans to those bond yields to derive a discount rate. The bond portfolio and plan-specific cash flows vary by country, but the methodology in which the portfolio is constructed is consistent. In the United States, the bond portfolio is large enough to result in taking a “settlement approach” to derive the discount rate, in which high-quality corporate bonds are assumed to be purchased and the resulting coupon payments and maturities are used to satisfy our U.S. pension plans’ projected benefit payments. Historically, the settlement approach was used for both the hourly and salaried plans and the ENPP. As a result of the termination of the Plan in 2023, we changed the discount rate methodology to align with the expected termination liability of the Plan more closely. The discount rate was derived using a "yield curve approach" as described below. The settlement approach used for the ENPP has not changed. In the United Kingdom and the Euro Zone, the discount rate is derived using a “yield curve approach,” in which an individual spot rate, or zero coupon bond yield, for each future annual period is developed to discount each future benefit payment and, thereby, determine the present value of all future payments. We use a spot yield curve to determine the discount rate applicable in the United Kingdom to measure the U.K. pension plan’s service cost and interest cost. Under the settlement and yield curve approaches, the discount rate is set to equal the single discount rate that produces the same present value of all future payments.

    The other key assumptions and methods were set as follows:
Our inflation assumption is based on an evaluation of external market indicators.
The salary growth assumptions reflect our long-term actual experience, the near-term outlook and assumed inflation.
The expected return on plan asset assumptions reflects asset allocations, investment strategy, historical experience and the views of investment managers, and reflects a projection of the expected arithmetic returns over ten years.
Determination of retirement rates and ages as well as termination rates, based on actual plan experience, actuarial standards of practice and the manner in which our defined benefit plans are being administered.
The mortality rates for the U.K. defined benefit pension plan were updated during 2023 to reflect the latest expected improvements in the life expectancy of the plan participants. The mortality rates for the U.S. defined benefit pension plans were unchanged from 2022, which reflected the Society of Actuaries’ most recent findings on the topic of mortality.
The fair value of assets used to determine the expected return on assets does not reflect any delayed recognition of asset gains and losses.

    The effects of actual results differing from our assumptions are accumulated and amortized over future periods and, therefore, generally affect our recognized expense in such periods.

    Our U.S. and U.K. defined benefit pension plans, including our ENPP, comprised approximately 83% of our consolidated projected benefit obligation as of December 31, 2023. The effects of a 25 basis point change in certain actuarial
39

assumptions on the 2023 net annual pension and ENPP costs and related benefit obligations as of December 31, 2023 would be as follows:
Year-end Benefit Obligation
2024 Net Annual Pension Cost
25 basis point increase25 basis point decrease25 basis point increase25 basis point decrease
Discount rate:
U.S. qualified defined benefit pension plans and ENPP
$(2.6)$2.7 $0.1 $(0.1)
U.K. defined benefit pension plans
(11.9)12.4 (0.3)0.2 
2024 Net Annual Pension Cost
25 basis point increase25 basis point decrease
Long-term rate of return on plan assets:
U.S. qualified defined benefit pension plans and ENPP
$(0.1)$0.1 
U.K. defined benefit pension plans
(1.2)1.2 

    Unrecognized actuarial net losses related to our defined benefit pension plans and ENPP were $280.2 million as of December 31, 2023 compared to $270.0 million as of December 31, 2022. The increase in unrecognized net actuarial losses between years primarily resulted from lower discount rates at December 31, 2023 compared to December 31, 2022. The unrecognized net actuarial losses will be impacted in future periods by actual asset returns, discount rate changes, currency exchange rate fluctuations, actual demographic experience and certain other factors. For some of our defined benefit pension plans, these losses, to the extent they exceed 10% of the greater of the plan’s liabilities or the fair value of assets (“the gain/loss corridor”), will be amortized on a straight-line basis over the periods discussed as follows. For our U.S. salaried, U.S. hourly and U.K. defined benefit pension plans, the population covered is predominantly inactive participants, and losses related to those plans, to the extent they exceed the gain/loss corridor, will be amortized over the average remaining lives of those participants while covered by the respective plan. For our ENPP, the population is predominantly active participants, and losses related to the plan will be amortized over the average future working lifetime of the active participants expected to receive benefits. As of December 31, 2023, the average amortization periods were as follows:
ENPPU.S. PlansU.K. Plan
Average amortization period of losses related to defined benefit pension plans6 years13 years18 years

    Unrecognized prior service cost related to our defined benefit pension plans was $31.4 million as of December 31, 2023 compared to $32.5 million as of December 31, 2022.

    As of December 31, 2023, our unfunded or underfunded obligations related to our defined benefit pension plans and ENPP were approximately $75.0 million, primarily related to our defined benefit pension plans in Europe and the United States. In 2023, we contributed approximately $35.1 million towards those obligations, and we expect to fund approximately $29.4 million in 2024. Future funding is dependent upon compliance with local laws and regulations and changes to those laws and regulations in the future, as well as the generation of operating cash flows in the future. We currently have an agreement in place with the trustees of the U.K. defined benefit plan that obligates us to fund approximately £10.9 million per year (or approximately $13.9 million) towards that obligation through December 2024. The funding arrangement is based upon the current funded status and could change in the future as discount rates, local laws and regulations, and other factors change.

    See Note 20 of our Consolidated Financial Statements for more information regarding the investment strategy and concentration of risk.

Goodwill, Other Intangible Assets and Long-Lived Assets

Goodwill

    We have significant goodwill on our balance sheet related to historical acquisitions and will add significant additional goodwill in connection with the planned Trimble Ag joint venture. We test goodwill for impairment, at the reporting unit level, annually as of October 1st or more frequently when events or circumstances indicate that the fair value of a reporting unit is more likely than not less than its carrying value. A reporting unit is an operating segment or one level below an operating
40

segment, for example, a component. We combine and aggregate two or more components of an operating segment as a single reporting unit if the components have similar economic characteristics. Our reportable segments are not our reporting units.

    Goodwill is evaluated for impairment using a qualitative assessment or a quantitative assessment. If we elect to perform a qualitative assessment and determine the fair value of our reporting units more likely than not exceeds their carrying value of net assets, no further evaluation is necessary. For reporting units where we perform a quantitative assessment, we compare the fair value of each reporting unit to its respective carrying value of net assets, including goodwill. If the fair value of the reporting unit exceeds its carrying value of net assets, the goodwill is not considered impaired. If the carrying value of net assets is higher than the fair value of the reporting unit, an impairment charge is recorded in the amount by which the carrying value exceeds the reporting unit’s fair value.