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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2024
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: 1-11442
CHART INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
Delaware
34-1712937
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
2200 Airport Industrial Drive, Suite 100, Ball Ground, Georgia 30107
(Address of principal executive offices) (ZIP Code)
(770) 721-8800
(Registrant's telephone number, including area code)
NOT APPLICABLE
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01GTLSNew York Stock Exchange
Depositary shares, each representing 1/20th interest in a share of 6.75% Series B Mandatory Convertible Preferred Stock, par value $0.01GTLS.PRBNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    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 and post such files).     Yes  x   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 the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
x
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
                
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).     Yes  ☐     No  x

As of April 29, 2024, there were 42,801,041 outstanding shares of the Company’s common stock, par value $0.01 per share.



CHART INDUSTRIES, INC.
INDEX
 
2

PART I. FINANCIAL INFORMATION

Item 1.Financial Statements
CHART INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in millions, except per share amounts)
March 31,
2024
December 31,
2023
ASSETS
Current Assets
Cash and cash equivalents$191.9 $188.3 
Accounts receivable, less allowances of $5.5 and $5.9, respectively
799.6 758.9 
Inventories, net572.3 576.3 
Unbilled contract revenue553.6 481.7 
Prepaid expenses121.0 74.9 
Other current assets132.9 134.3 
Total Current Assets2,371.3 2,214.4 
Property, plant, and equipment, net850.3 837.6 
Goodwill2,948.8 2,906.8 
Identifiable intangible assets, net2,711.3 2,791.9 
Equity method investments106.7 109.9 
Investments in equity securities95.3 91.2 
Other assets164.2 150.6 
TOTAL ASSETS$9,247.9 $9,102.4 
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable$868.8 $811.0 
Customer advances and billings in excess of contract revenue389.8 376.6 
Accrued salaries, wages, and benefits67.1 81.5 
Accrued interest53.3 92.5 
Accrued income taxes52.6 60.0 
Current portion of warranty reserve31.1 29.4 
Current portion of long-term debt259.9 258.5 
Operating lease liabilities, current18.9 18.5 
Other current liabilities152.2 138.2 
Total Current Liabilities1,893.7 1,866.2 
Long-term debt3,731.8 3,576.4 
Long-term deferred tax liabilities573.1 568.2 
Accrued pension liabilities6.7 6.7 
Operating lease liabilities, non-current52.1 50.7 
Other long-term liabilities96.2 95.2 
Total Liabilities6,353.6 6,163.4 
3

March 31,
2024
December 31,
2023
Equity
Preferred stock, par value $0.01 per share, $1,000 aggregate liquidation preference — 10,000,000 shares authorized, 402,500 shares issued and outstanding at both March 31, 2024 and December 31, 2023
  
Common stock, par value $0.01 per share — 150,000,000 shares authorized, 42,799,791 and 42,754,241 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively
0.4 0.4 
Additional paid-in capital1,875.8 1,872.5 
Treasury stock; 760,782 shares at both March 31, 2024 and December 31, 2023
(19.3)(19.3)
Retained earnings926.5 922.1 
Accumulated other comprehensive (loss) income(44.9)10.8 
Total Chart Industries, Inc. Shareholders’ Equity2,738.5 2,786.5 
Noncontrolling interests155.8 152.5 
Total Equity2,894.3 2,939.0 
TOTAL LIABILITIES AND EQUITY$9,247.9 $9,102.4 
See accompanying notes to these unaudited condensed consolidated financial statements.
4

CHART INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(UNAUDITED)
(Dollars and shares in millions, except per share amounts)
 Three Months Ended March 31,
 20242023
Sales$950.7 $531.5 
Cost of sales648.4 382.2 
Gross profit302.3 149.3 
Selling, general and administrative expenses141.5 92.9 
Amortization expense47.9 21.8 
Operating expenses189.4 114.7 
Operating income112.9 34.6 
Acquisition related finance fees 26.1 
Interest expense, net83.8 28.3 
Other expense, net3.2 1.7 
Income (loss) from continuing operations before income taxes and equity in loss of unconsolidated affiliates, net25.9 (21.5)
Income tax expense (benefit)8.8 (6.7)
Income (loss) from continuing operations before equity in loss of unconsolidated affiliates, net17.1 (14.8)
Equity in loss of unconsolidated affiliates, net(0.3)(0.4)
Net income (loss) from continuing operations16.8 (15.2)
(Loss) income from discontinued operations, net of tax(2.2)0.9 
Net income (loss)14.6 (14.3)
Less: Income attributable to noncontrolling interests of continuing operations, net of taxes3.3 0.7 
Net income (loss) attributable to Chart Industries, Inc.$11.3 $(15.0)
5

 Three Months Ended March 31,
 20242023
Amounts attributable to Chart common shareholders
Income (loss) from continuing operations$13.5 $(15.9)
Less: Mandatory convertible preferred stock dividend requirement6.8 6.8 
Income (loss) from continuing operations attributable to Chart6.7 (22.7)
(Loss) income from discontinued operations, net of tax(2.2)0.9 
Net income (loss) attributable to Chart common shareholders$4.5 $(21.8)
Basic earnings per common share attributable to Chart Industries, Inc.
Income (loss) from continuing operations$0.16 $(0.54)
(Loss) income from discontinued operations(0.05)0.02 
Net income (loss) attributable to Chart Industries, Inc.$0.11 $(0.52)
Diluted earnings per common share attributable to Chart Industries, Inc.
Income (loss) from continuing operations$0.14 $(0.54)
(Loss) income from discontinued operations(0.04)0.02 
Net income (loss) attributable to Chart Industries, Inc.$0.10 $(0.52)
Weighted-average number of common shares outstanding:
Basic42.03 41.94 
Diluted46.73 41.94 
Other comprehensive income (loss):
Net income (loss)$14.6 $(14.3)
Other comprehensive loss, net of tax:
Foreign currency translation adjustments, net(55.6)4.0 
Pension liability adjustments, net of taxes(0.1)0.1 
Total other comprehensive (loss) income, net of tax(55.7)4.1 
Comprehensive loss, net of taxes(41.1)(10.2)
Less: Comprehensive income attributable to noncontrolling interests, net of taxes3.3 0.7 
Comprehensive loss attributable to Chart Industries, Inc., net of taxes$(44.4)$(10.9)

See accompanying notes to these unaudited condensed consolidated financial statements.
6

CHART INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Dollars in millions)
 Three Months Ended March 31,
 20242023
OPERATING ACTIVITIES
Net income (loss)$14.6 $(14.3)
Less: (Loss) income from discontinued operations, net of tax(2.2)0.9 
Net income (loss) from continuing operations16.8 (15.2)
Adjustments to reconcile net income to net cash provided by operating activities:
Bridge loan facility fees 26.1 
Depreciation and amortization65.9 33.3 
Employee share-based compensation expense6.0 4.0 
Financing costs amortization4.7 2.8 
Unrealized foreign currency transaction (gain) loss(13.5)1.7 
Unrealized loss on investments in equity securities1.7 2.0 
Equity in loss of unconsolidated affiliates0.3 0.5 
Loss on sale of business7.8  
Other non-cash operating activities1.8 0.1 
Changes in assets and liabilities, net of acquisitions:
Accounts receivable(51.0)(6.6)
Inventories(4.1)10.4 
Unbilled contract revenues and other assets(133.8)(59.2)
Accounts payable and other liabilities(9.5)31.9 
Customer advances and billings in excess of contract revenue17.3 6.8 
Net Cash (Used In) Provided By Continuing Operating Activities(89.6)38.6 
Net Cash Used In Discontinued Operating Activities(5.5)(70.7)
Net Cash Used In Operating Activities(95.1)(32.1)
INVESTING ACTIVITIES
Acquisition of businesses, net of cash acquired (4,339.8)
Capital expenditures(46.1)(31.4)
Investments (6.0)(2.1)
Proceeds from sale of assets0.9 0.1 
Other investing activities(0.6)(0.6)
Net Cash Used In Investing Activities(51.8)(4,373.8)
7

 Three Months Ended March 31,
 20242023
FINANCING ACTIVITIES
Borrowings on credit facilities634.2 634.8 
Repayments on credit facilities(479.3)(45.0)
Borrowings on term loan 1,497.2 
Payments for debt issuance costs(1.5)(121.5)
Proceeds from issuance of common stock, net 11.7 
Proceeds from exercise of stock options0.3 0.1 
Common stock repurchases from share-based compensation plans(3.0)(2.6)
Dividends paid on mandatory convertible preferred stock(6.8)(6.9)
Net Cash Provided By Financing Activities143.9 1,967.8 
Effect of exchange rate changes on cash and cash equivalents(2.6)2.2 
Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents(5.6)(2,435.9)
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period (1)
201.1 2,605.3 
CASH, CASH EQUIVALENTS, RESTRICTED CASH, AND RESTRICTED CASH EQUIVALENTS AT END OF PERIOD (1)
$195.5 $169.4 
                
(1)Includes restricted cash and restricted cash equivalents of $3.6 and $12.8 classified within other current assets as of March 31, 2024 and December 31, 2023, respectively, and $2.5 and $1,941.7 as of March 31, 2023 and December 31, 2022, respectively.

See accompanying notes to these unaudited condensed consolidated financial statements.
8

CHART INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED)
(Dollars in millions)
Common StockPreferred StockAdditional Paid-in CapitalAccumulated Other Comprehensive
Income (Loss)
Non-controlling Interests
 Shares
Outstanding
AmountShares
Outstanding
AmountTreasury StockRetained
Earnings
Total
Equity
Balance at December 31, 202342.75 $0.4 0.4 $ $1,872.5 $(19.3)$922.1 $10.8 $152.5 $2,939.0 
Net income— — — — — — 11.3 — 3.3 14.6 
Other comprehensive loss— — — — — — — (55.7)— (55.7)
Share-based compensation expense— — — — 6.0 — — — — 6.0 
Common stock issued from share-based compensation plans0.07 — — — 0.3 — — — — 0.3 
Common stock repurchases from share-based compensation plans(0.02)— — — (3.0)— — — — (3.0)
Preferred stock dividend— — — — — — (6.8)— — (6.8)
Other— — — — — — (0.1)— — (0.1)
Balance at March 31, 202442.80 $0.4 0.4 $ $1,875.8 $(19.3)$926.5 $(44.9)$155.8 $2,894.3 
 Common StockPreferred StockAdditional Paid-in CapitalAccumulated Other Comprehensive Loss Non-controlling Interests
 Shares
Outstanding
AmountShares
Outstanding
AmountTreasury StockRetained
Earnings
Total
Equity
Balance at December 31, 202242.56 $0.4 0.4 $ $1,850.2 $(19.3)$902.2 $(58.0)$8.8 $2,684.3 
Net (loss) income — — — — — — (15.0)— 0.7 (14.3)
Other comprehensive income— — — — — — — 4.1 — 4.1 
Common stock issuance, net of equity issuance costs0.11 — — — 11.7 — — — — 11.7 
Share-based compensation expense— — — — 4.0 — — — — 4.0 
Common stock issued from share-based compensation plans0.08 — — — 0.1 — — — — 0.1 
Common stock repurchases from share-based compensation plans (0.02)— — — (2.6)— — — — (2.6)
Preferred stock dividend— — — — (6.9)— — (6.9)
Purchase of noncontrolling interest— — — — — — — — 26.5 26.5 
Other— — — — — — (0.2) 0.2  
Balance at March 31, 202342.73 $0.4 0.4 $ $1,863.4 $(19.3)$880.1 $(53.9)$36.2 $2,706.9 

See accompanying notes to these unaudited condensed consolidated financial statements.
9

CHART INDUSTRIES, INC. AND SUBSIDIARIES
Notes to the Unaudited Condensed Consolidated Financial Statements – March 31, 2024
(Dollars and shares in millions, except per share amounts)

NOTE 1 — Basis of Preparation
The accompanying unaudited condensed consolidated financial statements of Chart Industries, Inc. and its consolidated subsidiaries (herein referred to as the “Company,” “Chart,” “we,” “us,” or “our”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for annual financial statements. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024.
On March 17, 2023, we completed the acquisition of Howden (“Howden”), a leading global provider of mission critical air and gas handling products and services, from affiliates of KPS Capital Partners, LP. Results from continuing operations include results of Howden from the date of acquisition and exclude Roots™ (“Roots”) business financial results for our entire ownership period of March 17, 2023 through the divestiture date, August 18, 2023. The results of Roots are presented as discontinued operations in the condensed consolidated statements of operations and comprehensive loss and have been excluded from both continuing operations and segment results for the three months ended March 31, 2023. See Note 2, “Discontinued Operations and Other Businesses Sold” for further information regarding the Roots divestiture and Note 13, “Business Combinations”, for further information regarding the acquisition of Howden (the “Howden Acquisition”).
Nature of Operations: We are an independent global leader in the design, engineering, and manufacturing of process technologies and equipment for gas and liquid molecule handling for the Nexus of Clean™ – clean power, clean water, clean food, and clean industrials, regardless of molecule. Our unique product portfolio across both stationary and rotating equipment is used in every phase of the liquid gas supply chain, including upfront engineering, service and repair. Being at the forefront of the clean energy transition, Chart is a leading provider of technology, equipment and services related to liquefied natural gas, hydrogen, biogas, carbon capture and water treatment, among other applications. We are committed to excellence in environmental, social and corporate governance (ESG) issues both for our company as well as our customers. With 64 global manufacturing locations and over 50 service centers from the United States to Asia, India and Europe, we maintain accountability and transparency to our team members, suppliers, customers and communities.
Principles of Consolidation: The unaudited condensed consolidated financial statements include the accounts of Chart Industries, Inc. and its subsidiaries. Intercompany accounts and transactions are eliminated in consolidation.
Use of Estimates: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements. These estimates may also affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and assumptions, based on a number of factors including the current macroeconomic conditions such as inflation and supply chain disruptions, as well as risks set forth in our Annual Report on Form 10-K.
Reclassifications: Certain amounts have been reclassified within the condensed consolidated statement of cash flows for the three months ended March 31, 2023 to conform with the current period presentation.
Recently Issued Accounting Standards (Not Yet Adopted): In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” The amendments in this update enhance the transparency and decision usefulness of income tax disclosures. This update enhances the rate reconciliation by requiring an entity to disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. The update also requires an entity to disclose on an annual basis enhanced information about income taxes paid, income from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign, and income tax expense (or benefit) from continuing operations disaggregated by federal (national), state, and foreign. The amendments in this update are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. We are currently assessing the effect this ASU will have on our disclosures.
10

CHART INDUSTRIES, INC. AND SUBSIDIARIES
Notes to the Unaudited Condensed Consolidated Financial Statements – March 31, 2024
(Dollars and shares in millions, except per share amounts) – Continued





In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” The amendments in this update improve reportable segment disclosure requirements through enhanced disclosures about significant segment expenses. Among other things, this update requires an entity to disclose significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss. The update also requires entities to disclose other segment items, provide all annual disclosures about a reportable segment’s profit and loss and assets currently required by this Topic in interim periods, disclose the title and position of our CODM, and an explanation of how the CODM uses the reported measures of segment profit or loss in assessing segment performance and deciding how to allocate resources. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. We expect this ASU to result in expanded disclosure of segment financial information, with no impact on our financial position and results of operations.
Recently Adopted Accounting Standards: In June 2022, the FASB issued ASU 2022-03, “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions.” The amendments in this update clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot recognize and measure a contractual sale restriction and adds additional disclosures for equity securities subject to contractual sale restrictions. We adopted this guidance effective January 1, 2024. The adoption of this guidance did not have an impact on our financial position, results of operations, and disclosures.
NOTE 2 — Discontinued Operations and Other Businesses Sold
Roots™ Divestiture
On June 11, 2023, we signed a definitive agreement to divest our Roots business, which we acquired as part of the Howden acquisition, to Ingersoll Rand Inc. (New York Stock Exchange: IR) (“buyer”) for a base purchase price of $300.0, subject to customary adjustments. The sale was completed on August 18, 2023 with proceeds totaling $291.9 before customary estimated closing working capital adjustments. The purchase price was subject to an additional net working capital adjustment of $2.5, settled in the first quarter of 2024. No further adjustments to the purchase price are anticipated.
We previously determined that our Roots business qualified for discontinued operations and as such, the financial results of the Roots business are reflected in our unaudited condensed consolidated statements of operations and comprehensive loss as discontinued operations for our entire ownership period of March 17, 2023 through August 18, 2023.
Summarized Financial Information of Discontinued Operations
The following table represents income from discontinued operations, net of tax:
Three Months Ended March 31,
20242023
Sales$ $6.4 
Cost of sales 4.2 
Gross profit 2.2 
Selling, general and administrative expenses0.2 1.0 
Operating (loss) income(0.2)1.2 
(Loss) income before income taxes(0.2)1.2 
Income tax expense 0.3 
(Loss) income from discontinued operations before loss on sale of business(0.2)0.9 
Loss on sale of business, net of $0.5 of taxes
2.0  
(Loss) income from discontinued operations, net of tax$(2.2)$0.9 
11

CHART INDUSTRIES, INC. AND SUBSIDIARIES
Notes to the Unaudited Condensed Consolidated Financial Statements – March 31, 2024
(Dollars and shares in millions, except per share amounts) – Continued





Other Businesses Sold
On October 26, 2023, we signed and closed on the divestiture of our American Fan business to Arcline Investment Management, L.P, with net proceeds totaling $109.7 after customary closing working capital adjustments.
On October 31, 2023, we completed the sale of our Cofimco fans business (“Cofimco”) to PX3 Partners, with net proceeds totaling $67.4 after customary closing working capital adjustments.
The previously disclosed sale of our Cryo Diffusion business remains subject to potential net working capital adjustments.
NOTE 3 — Reportable Segments
As reported in our Annual Report on Form 10-K for the year ended December 31, 2023, we have four reportable segments, which are also our operating segments: Cryo Tank Solutions, Heat Transfer Systems, Specialty Products and Repair, Service & Leasing.
Our Cryo Tank Solutions segment, which has principal operations in the United States, Europe and Asia, serves most geographic regions around the globe, supplying bulk, microbulk and mobile equipment used in the storage, distribution, vaporization, and application of industrial gases and certain hydrocarbons. Our Heat Transfer Systems segment, with principal operations in the United States and Europe, also serves most geographic regions globally, supplying mission critical engineered equipment and systems used in the separation, liquefaction, and purification of hydrocarbon, liquefied natural gas (LNG) and industrial gases that span gas-to-liquid applications. Operating globally, our Specialty Products segment supplies products used in specialty end-market applications including hydrogen, LNG for over-the-highway vehicles, biofuels, carbon capture, food and beverage, aerospace, lasers and water treatment, among others. Our Heat Transfer Systems, Specialty Products and Cryo Tank Solutions segments also include new build products from the Howden Acquisition such as compressors, blowers and fans, rotary heaters and steam turbines. Our Repair, Service & Leasing segment provides installation, service, repair, maintenance, refurbishment and digital monitoring of Chart’s products globally in addition to providing equipment leasing solutions.
Corporate includes operating expenses for executive management, accounting, tax, treasury, corporate development, human resources, information technology, investor relations, legal, internal audit, risk management and share-based compensation expenses. Corporate support functions are not allocated to the segments.
We evaluate performance and allocate resources based on operating income as determined in our condensed consolidated statements of operations and comprehensive loss.
Segment Financial Information
 Three Months Ended March 31, 2024
 Cryo Tank SolutionsHeat Transfer SystemsSpecialty ProductsRepair, Service & LeasingIntersegment EliminationsCorporateConsolidated
Sales$159.7 $253.6 $236.5 $301.0 $(0.1)$ $950.7 
Depreciation and amortization expense5.3 9.2 7.1 43.0  1.3 65.9 
Operating income (loss)14.0 51.2 25.1 65.1  (42.5)112.9 
Three Months Ended March 31, 2023
Cryo Tank SolutionsHeat Transfer SystemsSpecialty ProductsRepair, Service & LeasingIntersegment EliminationsCorporateConsolidated
Sales$123.5 $167.5 $126.2 $118.5 $(4.2)$ $531.5 
Depreciation and amortization expense5.6 8.4 8.6 9.9  0.8 33.3 
Operating income (loss) (1)
4.3 27.3 21.8 33.1  (51.9)34.6 
_______________
(1)Acquisition-related contingent consideration credits in our Specialty Products segment related to our 2020 acquisition of Sustainable Energy Solutions, Inc. was $7.4 for the three months ended March 31, 2023.
12

CHART INDUSTRIES, INC. AND SUBSIDIARIES
Notes to the Unaudited Condensed Consolidated Financial Statements – March 31, 2024
(Dollars and shares in millions, except per share amounts) – Continued





Sales by Geography
Three Months Ended March 31, 2024
Cryo Tank SolutionsHeat Transfer SystemsSpecialty ProductsRepair, Service & LeasingIntersegment EliminationsConsolidated
North America$86.0 $157.6 $92.8 $122.1 $ $458.5 
Europe, Middle East, Africa and India45.5 40.2 65.0 120.6  271.3 
Asia-Pacific24.3 52.1 72.3 45.1 (0.1)193.7 
Rest of the World3.9 3.7 6.4 13.2  27.2 
Total$159.7 $253.6 $236.5 $301.0 $(0.1)$950.7 
Three Months Ended March 31, 2023
Cryo Tank SolutionsHeat Transfer SystemsSpecialty ProductsRepair, Service & LeasingIntersegment EliminationsConsolidated
North America$63.6 $134.6 $72.1 $55.7 $(2.3)$323.7 
Europe, Middle East, Africa and India42.0 15.5 33.0 36.1 (1.3)125.3 
Asia-Pacific17.1 14.3 20.1 23.0 (0.6)73.9 
Rest of the World0.8 3.1 1.0 3.7  8.6 
Total$123.5 $167.5 $126.2 $118.5 $(4.2)$531.5 
Total Assets
Corporate assets mainly include cash and cash equivalents and long-term deferred income taxes as well as certain corporate-specific property, plant and equipment, net and certain investments. Our allocation methodology for property, plant and equipment, net of the reportable segments differs from our allocation method of depreciation expense of a reportable segment and therefore, depreciation expense does not entirely align with the related depreciable assets of the reportable segments. Furthermore, since finite-lived intangible assets are excluded from total assets of reportable segments while amortization expense is allocated to each of our reportable segments, amortization expense by segment inherently does not align with the related amortizable intangible assets of the reportable segments.
March 31,
2024
December 31,
2023
Cryo Tank Solutions$667.1 $706.1 
Heat Transfer Systems680.1 560.7 
Specialty Products762.7 647.8 
Repair, Service & Leasing894.0 950.1 
Total assets of reportable segments3,003.9 2,864.7 
Goodwill2,948.8 2,906.8 
Identifiable intangible assets, net2,711.3 2,791.9 
Corporate583.9 539.0 
Total$9,247.9 $9,102.4 

13

CHART INDUSTRIES, INC. AND SUBSIDIARIES
Notes to the Unaudited Condensed Consolidated Financial Statements – March 31, 2024
(Dollars and shares in millions, except per share amounts) – Continued





NOTE 4 — Revenue
Disaggregation of Revenue
The following tables represent a disaggregation of revenue by timing of revenue along with the reportable segment for each category:
Three Months Ended March 31, 2024
Cryo Tank SolutionsHeat Transfer SystemsSpecialty ProductsRepair, Service & LeasingIntersegment EliminationsConsolidated
Point in time$101.1 $10.1 $69.0 $190.4 $ $370.6 
Over time58.6 243.5 167.5 110.6 (0.1)580.1 
Total$159.7 $253.6 $236.5 $301.0 $(0.1)$950.7 
Three Months Ended March 31, 2023
Cryo Tank SolutionsHeat Transfer SystemsSpecialty ProductsRepair, Service & LeasingIntersegment EliminationsConsolidated
Point in time$90.3 $11.4 $3.5 $71.5 $(2.4)$174.3 
Over time33.2 156.1 122.7 47.0 (1.8)357.2 
Total$123.5 $167.5 $126.2 $118.5 $(4.2)$531.5 
Refer to Note 3, “Reportable Segments,” for a table of revenue by reportable segment disaggregated by geography.
Contract Balances
The following table presents our contract assets and contract liabilities balances:
March 31, 2024December 31, 2023
Contract assets
Accounts receivable, net of allowances$799.6 $758.9 
Unbilled contract revenue553.6 481.7 
Contract liabilities
Customer advances and billings in excess of contract revenue$389.8 $376.6 
Revenue recognized for the three months ended March 31, 2024 and 2023, that was included in the contract liabilities balance at the beginning of each year was $137.5 and $68.0, respectively. The amount of revenue recognized during the three months ended March 31, 2024 from performance obligations satisfied or partially satisfied in previous periods as a result of changes in the estimates of variable consideration related to long-term contracts, was not significant.
Remaining Performance Obligations
Remaining performance obligations represent the transaction price of firm signed purchase orders or other written contractual commitments from customers for which work has not been performed, or is partially completed, and excludes unexercised contract options and potential orders. As of March 31, 2024, the estimated revenue expected to be recognized in the future related to remaining performance obligations was $4,331.1. We expect to recognize revenue on approximately 63% of the remaining performance obligations over the next 12 months and the remaining over the next few years thereafter.
14

CHART INDUSTRIES, INC. AND SUBSIDIARIES
Notes to the Unaudited Condensed Consolidated Financial Statements – March 31, 2024
(Dollars and shares in millions, except per share amounts) – Continued





NOTE 5 — Inventories
The following table summarizes the components of inventory:
March 31,
2024
December 31,
2023
Raw materials and supplies$273.8 $274.8 
Work in process163.6 155.4 
Finished goods134.9 146.1 
Total inventories, net$572.3 $576.3 
The allowance for excess and obsolete inventory balance at March 31, 2024 and December 31, 2023 was $11.3 and $9.9, respectively.
NOTE 6 — Leases
Lessee Accounting
We lease certain office spaces, warehouses, facilities, vehicles and equipment. Our leases have maturity dates ranging from April 2024 to September 2036. Leases with an initial term of twelve months or less are not recorded on the balance sheet. Operating lease right-of-use (“ROU”) assets are classified as property, plant and equipment, net in the condensed consolidated balance sheets. Finance lease ROU assets are classified as other assets in the condensed consolidated balance sheets. Operating lease liabilities are classified as operating lease liabilities, current and operating lease liabilities, non-current. Finance lease liabilities are classified as other current liabilities and other long-term liabilities in the condensed consolidated balance sheets.
We incurred $6.1 and $5.1 of rental expense under operating leases for the three months ended March 31, 2024 and 2023, respectively. Certain operating leases contain rent escalation clauses and lease concessions that require additional rental payments in the later years of the term. Rent expense for these types of leases is recognized on a straight-line basis over the minimum lease term. Adjustments for straight-line rental expense for the respective periods was not material and as such, the majority of expense recognized was reflected in cash provided by operating activities for the respective periods. This expense consisted primarily of payments for base rent on building and equipment leases. Payments related to short-term lease costs and taxes and variable service charges on leased properties were immaterial. In addition, we have the right, but no obligation, to renew certain leases for various renewal terms.
15

CHART INDUSTRIES, INC. AND SUBSIDIARIES
Notes to the Unaudited Condensed Consolidated Financial Statements – March 31, 2024
(Dollars and shares in millions, except per share amounts) – Continued





The following table presents the lease balances within our condensed consolidated balance sheets, weighted average remaining lease term and weighted average discount rates related to our leases:
Lease Assets and LiabilitiesMarch 31, 2024December 31, 2023
Assets
Operating lease, net$71.2 $69.1 
Finance lease, net16.6 16.1 
Total lease assets$87.8 $85.2 
Liabilities
Current:
Operating lease liabilities$18.9 $18.5 
Finance lease liabilities2.7 3.0 
Non-current:
Operating lease liabilities52.1 50.7 
Finance lease liabilities14.3 14.2 
Total lease liabilities$88.0 $86.4 
Weighted-average remaining lease terms
Operating leases5.2 years5.1 years
Finance leases7.9 years7.9 years
Weighted-average discount rate
Operating leases7.0%6.6%
Finance leases7.0%6.7%
Leased assets obtained in exchange for new finance and operating lease liabilities for the three months ended March 31, 2024 were $1.4 and $3.6, respectively.
The following table summarizes future minimum lease payments for non-cancelable operating leases and for finance leases as of March 31, 2024:
FinanceOperating
2024$2.8 $17.9 
20252.9 19.5 
20262.6 14.0 
20272.5 9.2 
20282.2 7.5 
Thereafter (1)
9.7 17.3 
Total future minimum lease payments$22.7 $85.4 
Less: Present value discount(5.7)(14.4)
Lease liability$17.0 $71.0 
_______________
(1)     As of March 31, 2024, future minimum lease payments for non-cancelable operating leases for the period subsequent to 2028 relate to twenty-four leased facilities.
16

CHART INDUSTRIES, INC. AND SUBSIDIARIES
Notes to the Unaudited Condensed Consolidated Financial Statements – March 31, 2024
(Dollars and shares in millions, except per share amounts) – Continued





Lessor Accounting
We lease equipment manufactured by Chart primarily through our Cryo-Lease program as sales-type and operating leases. As of March 31, 2024 and December 31, 2023, our short-term net investment in sales-type leases was $23.4 and $21.4, respectively, and is included in other current assets in our condensed consolidated balance sheets. Our long-term net investment in sales-type leases was $67.4 and $62.1 as of March 31, 2024 and December 31, 2023, respectively, and is included in other assets in our condensed consolidated balance sheets.
Operating leases offered by Chart may include early termination options. At the end of a lease, a lessee generally has the option to either extend the lease, purchase the underlying equipment for a fixed price or return it to Chart. The lease agreements clearly define applicable return conditions and remedies for non-compliance to ensure that leased equipment will be in good operating condition upon return.
The following table represents sales from sales-type and operating leases:
Three Months Ended March 31,
20242023
Sales-type leases$10.6 $12.7 
Operating leases1.6 1.2 
Total sales from leases$12.2 $13.9 
The following table represents scheduled payments for sales-type leases as of March 31, 2024:
2024$18.4 
202524.5 
202621.4 
202715.0 
202811.9 
Thereafter34.6 
Total125.8 
Less: unearned income35.0 
Total$90.8 
The following table represents the cost of equipment leased to others:
March 31, 2024December 31, 2023
Equipment leased to others, cost$24.0 $20.6 
Less: accumulated depreciation4.8 4.4 
Equipment leased to others, net$19.2 $16.2 
The following table represents payments due for operating leases as of March 31, 2024:
2024$0.8 
20250.1 
2026 
2027 
2028 
Thereafter 
Total$0.9 
17

CHART INDUSTRIES, INC. AND SUBSIDIARIES
Notes to the Unaudited Condensed Consolidated Financial Statements – March 31, 2024
(Dollars and shares in millions, except per share amounts) – Continued





NOTE 7 — Goodwill and Intangible Assets
Goodwill
The following table represents the changes in goodwill by segment:
Cryo Tank SolutionsHeat Transfer SystemsSpecialty ProductsRepair, Service & LeasingConsolidated
Balance at December 31, 2023$219.3 $480.4 $567.9 $1,639.2 $2,906.8 
Purchase accounting adjustments (1)
2.6 1.3 10.9 27.8 42.6 
Foreign currency translation adjustments and other(2.2)(1.8)(0.3)3.7 (0.6)
Balance at March 31, 2024$219.7 $479.9 $578.5 $1,670.7 $2,948.8 
Accumulated goodwill impairment loss at December 31, 2023$23.5 $49.3 $35.8 $20.4 $129.0 
Accumulated goodwill impairment loss at March 31, 2024$23.5 $49.3 $35.8 $20.4 $129.0 
_______________
(1)All purchase accounting adjustments during the period related to the Howden Acquisition. See Note 13, “Business Combinations” for further information.
Intangible Assets
The following table displays the gross carrying amount and accumulated amortization for finite-lived intangible assets and indefinite-lived intangible assets (exclusive of goodwill) (1):
 March 31, 2024December 31, 2023
 Estimated Useful LivesGross
Carrying
Amount
Accumulated
Amortization
Gross
Carrying
Amount
Accumulated
Amortization
Finite-lived intangible assets:
Customer relationships
4 to 18 years
$1,813.0 $(210.5)$1,836.4 $(185.2)
Technology
5 to 18 years
492.1 (88.3)496.7 (78.8)
Patents, backlog and other
2 to 10 years
137.4 (46.2)138.6 (35.6)
Trademarks and trade names
5 to 23 years
2.9 (1.9)3.3 (1.9)
Land use rights50 years10.2 (1.9)10.2 (1.9)
Total finite-lived intangible assets2,455.6 (348.8)2,485.2 (303.4)
Indefinite-lived intangible assets:
Trademarks and trade names (2)
604.5 — 610.1 — 
Total intangible assets$3,060.1 $(348.8)$3,095.3 $(303.4)
_______________
(1)Amounts include the impact of foreign currency translation. Fully amortized or impaired amounts are written off.
(2)Accumulated indefinite-lived intangible assets impairment loss was $16.0 at both March 31, 2024 and December 31, 2023.
Amortization expense for intangible assets subject to amortization was $47.9 and $21.8 for the three months ended March 31, 2024 and 2023, respectively.
18

CHART INDUSTRIES, INC. AND SUBSIDIARIES
Notes to the Unaudited Condensed Consolidated Financial Statements – March 31, 2024
(Dollars and shares in millions, except per share amounts) – Continued





NOTE 8 — Investments
Equity Method Investments
The following table presents the activity in equity method investments:
Equity Method Investments
Balance at December 31, 2023$109.9 
Equity in loss of unconsolidated affiliates(0.3)
Dividend received from equity method investment(0.7)
Foreign currency translation adjustments and other(2.2)
Balance at March 31, 2024$106.7 
Investments in Equity Securities
The following table presents the activity in investments in equity securities:
Investment in Equity Securities,
Level 1
Investment in Equity Securities,
Level 2
Investments in Equity Securities, All Others (1)
Investments Total
Balance at December 31, 2023$4.8 $6.1 $80.3 $91.2 
New investments  6.0 6.0 
(Decrease) increase in fair value of investments in equity securities(2.0)0.1 0.2 (1.7)
Foreign currency translation adjustments and other(0.1) (0.1)(0.2)
Balance at March 31, 2024$2.7 $6.2 $86.4 $95.3 
_______________
(1)Consists of investments in equity securities without a readily determinable fair value. Such investments are measured at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for an identical or a similar investment of the same issuer.
19

CHART INDUSTRIES, INC. AND SUBSIDIARIES
Notes to the Unaudited Condensed Consolidated Financial Statements – March 31, 2024
(Dollars and shares in millions, except per share amounts) – Continued





Co-Investment Agreement
On September 7, 2021 (the “Closing Date”), we entered into a Co-investment agreement with I Squared Capital (“ISQ”), an infrastructure-focused private equity firm (the “Co-Investment Agreement”), pursuant to which Chart and ISQ have agreed to the following:
In the following circumstances, ISQ shall have the right but not the obligation to require Chart to purchase all (and not less than all) of the shares of Hydrogen Technology & Energy Corporation (“HTEC”) common stock acquired as part of ISQ’s investment described above (the “Put Option”):
i.the third anniversary of the Closing Date,
ii.the date Chart undergoes a change of control (subject to certain exceptions),
iii.the date upon which Chart, during the period from the Closing Date through the third anniversary of the Closing Date, has made certain distributions to its shareholders (including cash or other dividends, or via a spin-off transaction), in excess of $900.0,
iv.the date, if any, upon which our leverage ratio exceeds certain thresholds and
v.the date, if any, of a bankruptcy event (including certain insolvency-related actions) involving Chart.
In the event that ISQ exercises its Put Option, we shall pay to ISQ an amount in cash in exchange for the HTEC common stock then held by ISQ such that ISQ shall realize the greater of (i) an internal rate of return of 10% and (ii) a multiple on ISQ’s invested capital of 1.65x.
Conversely, at any time after the third anniversary of the Closing Date, we shall have the right to purchase from ISQ up to 20% of the shares of HTEC common stock acquired as part of the ISQ Investment. In exchange for the common stock, we shall pay ISQ the greater of (i) an internal rate of return of 12.5% and (ii) a multiple on ISQ’s invested capital of 1.65x.
In addition, we shall have (i) a right of first offer: if ISQ desires to transfer any of its HTEC common stock to any third party, we shall have the right to first offer provided that upon notice, we shall have the option to make a first offer to purchase the offered interest in cash exclusively and (ii) a right of first refusal: if ISQ desires to sell its HTEC common stock to any third party pursuant to a definitive agreement therewith, we shall have the right of first refusal provided that the purchase consideration paid by Chart to ISQ upon our exercise of such right of first refusal must be equal to 102% of the purchase consideration agreed to be paid by such third party.
The Co-Investment Agreement shall terminate automatically upon the consummation of an initial public offering by HTEC of its common stock.
Our equity method investment in HTEC was $79.3 and $82.3 at March 31, 2024 and December 31, 2023, respectively.
Accounting Treatment of Put and Call Options
We record the Put and Call Options (together “the Options”) at fair value and record any change in fair value through earnings at each reporting period. The fair value of the Options was not material on the Closing Date or at March 31, 2024 and December 31, 2023.
Hy24 (f/k/a FiveT Hydrogen Fund and Clean H2 Infra Fund)
On April 5, 2021, we were admitted as an anchor investor in Hy24 (the “Hydrogen Fund”). Hy24 is a joint venture between Ardian, a European investment house, and FiveT Hydrogen, an investment manager specialized purely on clean hydrogen investments. Investments to date include a green steel manufacturing plant that integrates green hydrogen located in Sweden, upstream e-Methanol and sustainable aviation fuel production in Europe, and green hydrogen production projects (electrolysis) in Europe. Our total investment to date is euro 9.7 million (equivalent to $10.4), making our unfunded commitment euro 40.3 million (equivalent to $43.6).

20

CHART INDUSTRIES, INC. AND SUBSIDIARIES
Notes to the Unaudited Condensed Consolidated Financial Statements – March 31, 2024
(Dollars and shares in millions, except per share amounts) – Continued





NOTE 9 — Debt and Credit Arrangements
Summary of Outstanding Borrowings
The following table represents the components of our borrowings:
 March 31,
2024
December 31,
2023
Senior secured and senior unsecured notes:
Principal amount, senior secured notes due 2030$1,460.0 $1,460.0 
Principal amount, senior unsecured notes due 2031510.0 510.0 
Unamortized discount(26.1)(26.9)
Unamortized debt issuance costs(31.9)(32.9)
Senior secured and senior unsecured notes, net of unamortized discount and debt issuance costs1,912.0 1,910.2 
Senior secured revolving credit facilities and term loans:
Term loans due March 20301,631.0 1,631.0 
Senior secured revolving credit facility due April 2029
254.3