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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM10-Q
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended June 30, 2022
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 1-34036
John Bean Technologies Corporation
(Exact name of registrant as specified in its charter)
Delaware91-1650317
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization)
Identification No.)
70 West Madison Street,Suite 4400
Chicago,Illinois60602
(Address of principal executive offices)(Zip code)
(312) 861-5900
(Registrant’s telephone number, including area code)
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 $0.01 per shareJBTNew 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      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes     No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “non-accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
ClassOutstanding at July 22, 2022
Common Stock, par value $0.01 per share31,861,680
1


PART I — FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

JOHN BEAN TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

Three Months Ended June 30,Six Months Ended June 30,
(In millions, except per share data)2022202120222021
Revenue:
Product revenue$466.6 $412.1 $867.5 $772.8 
Service revenue75.7 63.4 144.0 120.5 
Total revenue542.3 475.5 1,011.5 893.3 
Operating expenses:
Cost of products337.2 281.6 619.0 526.7 
Cost of services53.8 44.0 101.7 83.5 
Selling, general and administrative expense108.3 101.6 216.7 196.0 
Restructuring expense0.8 1.0 1.3 2.0 
Operating income 42.2 47.3 72.8 85.1 
Interest expense, net2.5 2.1 4.6 4.2 
Net income before income taxes39.7 45.2 68.2 80.9 
Income tax provision6.3 14.7 9.2 23.4 
Net income $33.4 $30.5 $59.0 $57.5 
Basic earnings per share:
Net income $1.05 $0.95 $1.84 $1.80 
Diluted earnings per share:
Net income $1.04 $0.95 $1.84 $1.79 

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.  
2


JOHN BEAN TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
Three Months Ended June 30,Six Months Ended June 30,
(In millions)2022202120222021
Net income$33.4 $30.5 $59.0 $57.5 
Other comprehensive income, net of income taxes
Foreign currency translation adjustments(26.7)3.6 (26.6)8.1 
Pension and other postretirement benefits adjustments1.4 1.7 3.0 3.4 
Derivatives designated as hedges1.8 (0.3)9.1 2.9 
Other comprehensive income (23.5)5.0 (14.5)14.4 
Comprehensive income$9.9 $35.5 $44.5 $71.9 

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.  
3


JOHN BEAN TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In millions, except per share data and number of shares)June 30, 2022December 31, 2021
Assets:
Current Assets:
Cash and cash equivalents$68.1 $78.8 
Trade receivables, net of allowances268.4 239.1 
Contract assets98.2 94.4 
Inventories298.8 229.1 
Other current assets73.4 77.3 
Total current assets806.9 718.7 
Property, plant and equipment, net of accumulated depreciation of $342.8 and $339.2 respectively
263.4 267.6 
Goodwill666.4 684.8 
Intangible assets, net310.2 342.6 
Other assets175.2 127.7 
Total Assets$2,222.1 $2,141.4 
Liabilities and Stockholders' Equity:
Current Liabilities:
Accounts payable, trade and other$222.9 $186.0 
Advance and progress payments214.3 190.2 
Other current liabilities169.5 173.7 
Total current liabilities606.7 549.9 
Long-term debt674.6 674.4 
Accrued pension and other postretirement benefits, less current portion48.2 57.6 
Other liabilities102.8 109.0 
Commitments and contingencies (Note 13)
Stockholders' Equity:
Preferred stock, $0.01 par value; 20,000,000 shares authorized; no shares issued in 2022 or 2021
  
Common stock, $0.01 par value; 120,000,000 shares authorized; June 30, 2022: 31,861,470 issued and outstanding; December 31, 2021: 31,769,967 issued and outstanding
0.3 0.3 
Common stock held in treasury, at cost June 30, 2022: 0 shares and December 31, 2021: 0 shares
  
Additional paid-in capital215.4 214.2 
Retained earnings786.0 733.4 
Accumulated other comprehensive loss(211.9)(197.4)
Total stockholders' equity789.8 750.5 
Total Liabilities and Stockholders' Equity$2,222.1 $2,141.4 

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.
4


JOHN BEAN TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended June 30,
(In millions)20222021
Cash flows from operating activities:
Net income $59.0 $57.5 
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization39.1 36.6 
Stock-based compensation4.7 4.1 
Other4.4 2.4 
Changes in operating assets and liabilities:
Trade receivables, net and contract assets(41.7)(2.8)
Inventories(78.3)(11.0)
Accounts payable, trade and other39.5 37.6 
Advance and progress payments29.5 8.4 
Accrued pension and other postretirement benefits, net(2.7)(0.5)
Other assets and liabilities, net(8.7)(2.0)
Cash provided by operating activities44.8 130.3 
Cash flows from investing activities:
Acquisitions, net of cash acquired(0.4)(15.9)
Capital expenditures(44.4)(20.3)
Proceeds from disposal of assets0.6 1.7 
Cash required by investing activities(44.2)(34.5)
Cash flows from financing activities:
Net proceeds (payments) on short-term debt (1.8)
Net proceeds (payments) for domestic credit facilities0.9 (270.1)
Proceeds from issuance of 2026 convertible senior notes, net of issuance costs 392.2 
Purchase of convertible bond hedge (65.6)
Proceeds from sale of warrants 29.5 
Settlement of taxes withheld on stock-based compensation awards(1.2)(2.0)
Payment of acquisition date earnout liability (16.1)
Dividends(6.7)(6.3)
Common stock repurchases(2.3) 
Cash (required) provided by financing activities(9.3)59.8 
Effect of foreign exchange rate changes on cash and cash equivalents(2.0)(0.8)
(Decrease) increase in cash and cash equivalents(10.7)154.8 
Cash and cash equivalents, beginning of period78.8 47.5 
Cash and cash equivalents, end of period$68.1 $202.3 
Supplemental Cash Flow Information:
Non-cash investing in capital expenditures, accrued but not paid$14.9 $0.2 

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.
5



JOHN BEAN TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(Unaudited)

Three Months Ended June 30, 2022
(In millions)Common StockCommon Stock Held in TreasuryAdditional Paid-In CapitalRetained EarningsAccumulated Other Comprehensive Income (Loss)Total Equity
Balance at March 31, 2022$0.3 $ $215.9 $755.8 $(188.4)$783.6 
Net income— — — 33.4 — 33.4 
Issuance of treasury stock— 2.3 (2.3)— —  
Share repurchases— (2.3)— — — (2.3)
Common stock cash dividends, $0.10 per share
— — — (3.2)— (3.2)
Foreign currency translation adjustments, net of income taxes of ($1.5)
— — — — (26.7)(26.7)
Derivatives designated as hedges, net of income taxes of ($0.6)
— — — — 1.8 1.8 
Pension and other postretirement liability adjustments, net of income taxes of ($0.5)
— — — — 1.4 1.4 
Stock-based compensation expense— — 3.0 — — 3.0 
Taxes withheld on issuance of stock-based awards— — (1.2)— — (1.2)
Balance at June 30, 2022$0.3 $ $215.4 $786.0 $(211.9)$789.8 

Six Months Ended June 30, 2022
(In millions)Common StockCommon Stock Held in TreasuryAdditional Paid-In CapitalRetained EarningsAccumulated Other Comprehensive Income (Loss)Total Equity
Balance at December 31, 2021$0.3 $ $214.2 $733.4 $(197.4)$750.5 
Net income— — — 59.0 — 59.0 
Issuance of treasury stock— 2.3 (2.3)— —  
Share repurchases— (2.3)— — — (2.3)
Common stock cash dividends, $0.20 per share
— — — (6.4)— (6.4)
Foreign currency translation adjustments, net of income taxes of ($1.7)
— — — — (26.6)(26.6)
Derivatives designated as hedges, net of income taxes of ($3.2)
— — — — 9.1 9.1 
Pension and other postretirement liability adjustments, net of income taxes of ($1.0)
— — — — 3.0 3.0 
Stock-based compensation expense— — 4.7 — — 4.7 
Taxes withheld on issuance of stock-based awards— — (1.2)— — (1.2)
Balance at June 30, 2022$0.3 $ $215.4 $786.0 $(211.9)$789.8 

6


Three Months Ended June 30, 2021
(In millions)Common StockCommon Stock Held in TreasuryAdditional Paid-In CapitalRetained EarningsAccumulated Other Comprehensive Income (Loss)Total Equity
Balance at March 31, 2021$0.3 $(0.9)$231.6 $651.6 $(210.5)$672.1 
Net income— — — 30.5 — 30.5 
Issuance of treasury stock— 0.9 (0.9)— —  
Common stock cash dividends, $0.10 per share
— — — (3.2)— (3.2)
Foreign currency translation adjustments, net of income taxes of $0.4
— — — — 3.6 3.6 
Derivatives designated as hedges, net of income taxes of $0.1
— — — — (0.3)(0.3)
Proceeds from sale of warrants— — 29.5 — — 29.5 
Purchase of convertible bond hedge, net of income tax of $17.1
— — (48.5)— — (48.5)
Pension and other postretirement liability adjustments, net of income taxes of ($0.6)
— — — — 1.7 1.7 
Stock-based compensation expense— — 2.3 — — 2.3 
Taxes withheld on issuance of stock-based awards— — (2.0)— — (2.0)
Balance at June 30, 2021$0.3 $ $212.0 $678.9 $(205.5)$685.7 

Six Months Ended June 30, 2021
(In millions)Common StockCommon Stock Held in TreasuryAdditional Paid-In CapitalRetained EarningsAccumulated Other Comprehensive Income (Loss)Total Equity
Balance at December 31, 2020$0.3 $(1.0)$229.9 $627.8 $(219.9)$637.1 
Net income— — — 57.5 — 57.5 
Issuance of treasury stock— 1.0 (1.0)— —  
Common stock cash dividends, $0.20 per share
— — — (6.4)— (6.4)
Foreign currency translation adjustments, net of income taxes of ($0.7)
— — — — 8.1 8.1 
Derivatives designated as hedges, net of income taxes of ($1.0)
— — — — 2.9 2.9 
Proceeds from sale of warrants— — 29.5 — — 29.5 
Purchase of convertible bond hedge, net of income tax of $17.1
— — (48.5)— — (48.5)
Pension and other postretirement liability adjustments, net of income taxes of ($1.2)
— — — — 3.4 3.4 
Stock-based compensation expense— — 4.1 — — 4.1 
Taxes withheld on issuance of stock-based awards— — (2.0)— — (2.0)
Balance at June 30, 2021$0.3 $ $212.0 $678.9 $(205.5)$685.7 

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.
7


JOHN BEAN TECHNOLOGIES CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)



NOTE 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

Description of Business
John Bean Technologies Corporation and its majority-owned consolidated subsidiaries (the “Company,” “JBT,” “our,” “us,” or “we”) provide global technology solutions to high-value segments of the food and beverage and air transportation industries. The Company designs, produces and services sophisticated products and systems for multi-national and regional customers through JBT FoodTech and JBT AeroTech segments. The Company has manufacturing operations worldwide that are strategically located to facilitate delivery of its products and services to its customers.

Basis of Presentation
In accordance with Securities and Exchange Commission (“SEC”) rules for interim periods, the accompanying unaudited condensed consolidated financial statements (the “interim financial statements”) do not include all of the information and notes for complete financial statements as required by accounting principles generally accepted in the United States of America (“U.S. GAAP”). As such, the accompanying interim financial statements should be read in conjunction with the Annual Report on Form 10-K for the year ended December 31, 2021, which provides a more complete description of the Company’s accounting policies, financial position, operating results, business, properties, and other matters. The year-end condensed consolidated Balance Sheet was derived from audited financial statements, but does not include all annual disclosures required by accounting principles generally accepted in the United States of America.

In the opinion of management, the interim financial statements reflect all normal recurring adjustments necessary for a fair statement of the Company's financial condition and operating results as of and for the periods presented. Revenue, expenses, assets and liabilities can vary during each quarter of the year. Therefore, the interim results and trends in the interim financial statements may not be representative of those for the full year or any future period.

Use of estimates
Preparation of financial statements that follow U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates.

Recently Issued Accounting Standards Not Yet Adopted
In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. This update requires annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. This standard is effective for annual periods beginning after December 15, 2021 and should be applied either prospectively or retrospectively. Early adoption is permitted. The Company is currently evaluating the impact of adopting ASU 2021-10 within its Form 10-K for the fiscal year 2022.

8


NOTE 2. ACQUISITIONS

During fiscal year 2021 the Company acquired 100% of voting equity of three businesses. The Company did not make any acquisitions during the six months ended June 30, 2022. A summary of the acquisitions made during 2021 is as follows:
DateType Company/Product LineLocation (Near)Segment
November 2, 2021Stock
Urtasun Tecnología Alimentaria S.L ("Urtasun")
Navarra, SpainJBT FoodTech
A provider of fruit and vegetable processing solutions, particularly in the fresh packaged and frozen markets. The Urtasun acquisition extends the Company's capabilities in providing fruit and vegetable processing solutions.
July 2, 2021StockCMS Technology, Inc ("Prevenio")Bridgewater, New JerseyJBT FoodTech
A provider of innovative food safety solutions primarily for the poultry industry as well as produce applications. Prevenio provides a pathogen protection solution through its anti-microbial delivery equipment that enhances food safety and integrity, and creates a safer work environment for its customers and their employees. This acquisition enhances the Company’s recurring revenue portfolio and furthers its investment in solutions that support its customers’ daily operations.
February 28, 2021StockAutoCoding Systems Ltd. ("ACS")Cheshire, U.K.JBT FoodTech
A provider of a central command solution for the integration of packaging process devices. The ACS acquisition extends the Company's capabilities in packaging line equipment and associated devices, including coding and label inspection and verification.
Each acquisition has been accounted for as a business combination. Tangible and identifiable intangible assets acquired and liabilities assumed were recorded at their respective estimated fair values. The excess of the consideration transferred over the estimated fair value of the net assets received has been recorded as goodwill. The factors that contributed to the recognition of goodwill primarily relate to acquisition-driven anticipated cost savings and revenue enhancement synergies coupled with the assembled workforce acquired.
9


(In millions)
Urtasun(1)
Prevenio(2)
ACS(3)
Total
Financial assets$8.8 $8.1 $2.9 $19.8 
Inventories3.4 0.2 0.7 4.3 
Property, plant and equipment3.2 4.1  7.3 
Customer relationship (4)
11.5 41.0 3.7 56.2 
Patents and acquired technology (4)
6.0 17.5 3.4 26.9 
Trademarks (4)
2.2 0.7 0.8 3.7 
Deferred taxes(5.9)(15.1)(0.9)(21.9)
Financial liabilities(7.8)(3.4)(2.9)(14.1)
Total identifiable net assets$21.4 $53.1 $7.7 $82.2 
Cash consideration paid$44.2 $173.3 $16.8 $234.3 
Cash acquired4.8 3.5 1.1 9.4 
Net consideration$39.4 $169.8 $15.7 $224.9 
Goodwill (5)
$22.8 $120.2 $9.1 $152.1 

(1)The purchase accounting for Urtasun is provisional. The valuation of certain intangible assets, income tax balances and residual goodwill is not complete. These amounts are subject to adjustment as additional information is obtained within the measurement period (not to exceed 12 months from the acquisition date). During the quarter ended June 30, 2022, the Company made no significant measurement period adjustments for this acquisition.
(2)The purchase accounting for Prevenio is final as of June 30, 2022. During the quarter ended June 30, 2022, the Company made no significant measurement period adjustments for this acquisition.
(3)The purchase accounting for ACS was final as of December 31, 2021.
(4)The acquired intangible assets are amortized on a straight-line basis over their estimated useful lives, which range from four to twenty years. The intangible assets acquired in 2021 have weighted average useful lives of 14 years for customer relationship, 8 years for patents and acquired technology, and 17 years for trademarks.
(5)The Company expects goodwill of $0.7 million from these acquisitions to be deductible for income tax purposes.

10


NOTE 3. GOODWILL AND INTANGIBLE ASSETS

The changes in the carrying amount of goodwill by business segment were as follows:
(In millions)JBT FoodTechJBT AeroTechTotal
Balance as of December 31, 2021$646.7 $38.1 $684.8 
Acquisitions1.2  1.2 
Currency translation(19.2)(0.4)(19.6)
Balance as of June 30, 2022$628.7 $37.7 $666.4 

Intangible assets consisted of the following:
June 30, 2022December 31, 2021
(In millions)Gross carrying amountAccumulated amortizationGross carrying amountAccumulated amortization
Customer relationship$301.5 $110.7 $309.3 $102.0 
Patents and acquired technology165.7 85.4 174.5 82.0 
Trademarks44.6 15.8 47.2 15.0 
Non-amortizing intangible assets10.3 — 10.6 — 
Other8.6 8.6 8.7 8.7 
Total intangible assets$530.7 $220.5 $550.3 $207.7 


NOTE 4. INVENTORIES

Inventories consisted of the following:
(In millions)June 30, 2022December 31, 2021
Raw materials $128.1 $101.0 
Work in process 80.3 59.1 
Finished goods 174.2 151.8 
Gross inventories before LIFO reserves and valuation adjustments 382.6 311.9 
LIFO reserves(53.7)(53.3)
Valuation adjustments(30.1)(29.5)
Net inventories $298.8 $229.1 


NOTE 5. PENSION

Components of net periodic benefit cost were as follows:
Three Months Ended June 30,Six Months Ended June 30,
(In millions)2022202120222021
Service cost$0.4 $0.6 $0.9 $1.2 
Interest cost1.9 1.7 3.8 3.3 
Expected return on plan assets(3.9)(3.9)(7.8)(7.8)
Amortization of net actuarial losses2.0 2.3 4.0 4.6 
Net periodic cost$0.4 $0.7 $0.9 $1.3 

11


The Company expects to contribute $3.1 million to its pension and other post-retirement benefit plans in 2022. The pension contributions will be primarily for the Non-U.S. based employee defined benefit plans, and all of the contributions are expected to be in the form of cash. We have made no contribution to our U.S. qualified pension plan during the six months ended June 30, 2022.

NOTE 6. DEBT

The components of the Company's borrowings were as follows:
(In millions)Maturity DateJune 30, 2022December 31, 2021
Revolving credit facility (1)
December 14, 2026$281.9 $282.9 
Less: unamortized debt issuance costs$(1.1)$(1.2)
Revolving credit facility, net$280.8 $281.7 
Convertible senior notes (2)
May 15, 2026$402.5 $402.5 
Less: unamortized debt issuance costs$(8.7)$(9.8)
Convertible senior notes, net$393.8 $392.7 
Long-term debt, net$674.6 $674.4 
(1) Weighted-average interest rate at June 30, 2022 was 2.01%
(2) Effective interest rate for the Notes (as defined below) for the quarter ended June 30, 2022 was 0.82%

Components of interest expense recognized for the 0.25% Convertible Senior Notes due 2026 (the "Notes") were as follows:
Three Months Ended June 30,Six Months Ended June 30,
(In millions)2022202120222021
Contractual interest expense$0.2 $0.1 $0.5 $0.1 
Interest cost related to amortization of issuance costs0.6 0.2 1.1 0.2 
Total interest expense$0.8 $0.3 $1.6 $0.3 

Convertible Note Hedge Transactions

On May 28, 2021, the Company closed a private offering of $402.5 million aggregate principal amount of the Notes to qualified institutional buyers. The initial conversion rate of the Notes is 5.8958 shares of the Company's common stock per $1,000 principal amount of notes, which is equivalent to an initial conversion price of approximately $169.61 per share. The conversion rate of the Notes is subject to adjustment upon the occurrence of certain specified events.

On May 28, 2021, the Company paid an aggregate amount of $65.6 million for the Convertible Note Hedge Transactions (the "Hedge Transactions"). The Hedge Transactions cover, subject to anti-dilution adjustments substantially similar to those in the Notes, approximately 2.4 million shares of the Company's common stock. These are the same number of shares initially underlying the Notes, at a strike price of $169.61, subject to customary adjustments. The Hedge Transactions will expire upon the maturity of the Notes, subject to earlier exercise or termination.

The Hedge Transactions are expected generally to reduce the potential dilutive effect of the conversion of the Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of the converted Notes, in the event that the market price per share of the Company's common stock, as measured under the terms of the Hedge Transactions, is greater than the Hedge Transactions strike price of $169.61. The Hedge Transactions meet the criteria in ASC 815-40 to be classified within Stockholders' Equity, and therefore these transactions are not revalued after their issuance.

The Company made a tax election to integrate the Notes and the Hedge Transactions. The accounting impact of this tax election makes the Hedge Transactions deductible as original issue discount interest for tax purposes over the term of the note, and results in a $17.1 million deferred tax asset recorded as an adjustment to Additional paid-in capital on our Balance Sheet as of June 30, 2022.

12


Warrant Transactions

In addition, concurrently with entering into the Hedge Transactions, the Company separately entered into privately-negotiated Warrant Transactions (the "Warrant Transactions"), whereby the Company sold to the counterparties warrants to acquire, collectively, subject to anti-dilution adjustments, 2.4 million shares of its common stock at an initial strike price of $240.02 per share. The Company received aggregate proceeds of $29.5 million from the Warrant Transactions with the counterparties, with such proceeds partially offsetting the costs of entering into the Hedge Transactions. The warrants expire in August 2026. If the market value per share of the common stock, exceeds the strike price of the warrants, the warrants will have a dilutive effect on our earnings per share, unless the Company elects, subject to certain conditions, to settle the warrants in cash. The warrants meet the criteria in ASC 815-40 to be classified within Stockholders' Equity, and therefore the warrants are not revalued after issuance.

NOTE 7. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Accumulated other comprehensive income or loss (“AOCI”) represents the cumulative balance of other comprehensive income, net of tax, as of the Balance Sheet date. For the Company, AOCI is composed of adjustments related to pension and other postretirement benefit plans, derivatives designated as hedges, and foreign currency translation adjustments. Changes in the AOCI balances for the three months ended June 30, 2022 and 2021 by component are shown in the following tables:
Pension and Other Postretirement Benefits (1)
Derivatives Designated as Hedges (1)
Foreign Currency Translation (1)
Total (1)
(In millions)
Beginning balance, March 31, 2022$(143.9)$9.1 $(53.6)$(188.4)
Other comprehensive income (loss) before reclassification 1.8 (26.2)(24.4)
Amounts reclassified from accumulated other comprehensive income1.4  (0.5)0.9 
Ending balance, June 30, 2022$(142.5)$10.9 $(80.3)$(211.9)
(1) All amounts are net of income taxes.

Reclassification adjustments from AOCI into earnings for pension and other postretirement benefit plans for the three months ended June 30, 2022 were $2.0 million of charges to pension expense, other than service cost, net of $0.6 million income tax benefit. There were no reclassification adjustments for derivatives designated as hedges during the period. Reclassification adjustments for foreign currency translation related to net investment hedges for the three months ended June 30, 2022 were $0.7 million of benefit in interest expense, net of $0.2 million income tax provision.
Pension and Other Postretirement Benefits (1)
Derivatives Designated as Hedges (1)
Foreign Currency Translation(1)
Total (1)
(In millions)
Beginning balance, March 31, 2021$(159.7)$(0.6)$(50.2)$(210.5)
Other comprehensive income (loss) before reclassification (0.7)4.1 3.4 
Amounts reclassified from accumulated other comprehensive income1.7 0.4 (0.5)1.6 
Ending balance, June 30, 2021$(158.0)$(0.9)$(46.6)$(205.5)
(1) All amounts are net of income taxes.

Reclassification adjustments from AOCI into earnings for pension and other postretirement benefit plans for the three months ended June 30, 2021 were $2.3 million of charges to pension expense, other than service cost, net of $0.6 million in benefit for income taxes. Reclassification adjustments for derivatives designated as hedges for the same period were $0.5 million of interest expense, net of $0.1 million income tax benefit. Reclassification adjustments for foreign currency translation related to net investment hedges for the three months ended June 30, 2021 were $0.7 million of benefit in interest expense, net of $0.2 million income tax provision.
13



Changes in the AOCI balances for the six months ended June 30, 2022 and 2021 by component are shown in the following tables:
Pension and Other Postretirement Benefits (1)
Derivatives Designated as Hedges (1)
Foreign Currency Translation (1)
Total (1)
(In millions)
Beginning balance, December 31, 2021$(145.5)$1.8 $(53.7)$(197.4)
Other comprehensive income (loss) before reclassification 8.8 (25.6)(16.8)
Amounts reclassified from accumulated other comprehensive income