10-Q 1 jbt-20240930.htm 10-Q jbt-20240930
000143366012/312024Q3FALSE--12-31111xbrli:sharesiso4217:USDiso4217:USDxbrli:sharesiso4217:EURxbrli:sharesiso4217:EURxbrli:pureutr:Ratejbt:derivative00014336602024-01-012024-09-3000014336602024-10-170001433660us-gaap:ProductMember2024-07-012024-09-300001433660us-gaap:ProductMember2023-07-012023-09-300001433660us-gaap:ProductMember2024-01-012024-09-300001433660us-gaap:ProductMember2023-01-012023-09-300001433660us-gaap:ServiceMember2024-07-012024-09-300001433660us-gaap:ServiceMember2023-07-012023-09-300001433660us-gaap:ServiceMember2024-01-012024-09-300001433660us-gaap:ServiceMember2023-01-012023-09-3000014336602024-07-012024-09-3000014336602023-07-012023-09-3000014336602023-01-012023-09-3000014336602024-09-3000014336602023-12-310001433660us-gaap:LineOfCreditMember2024-01-012024-09-300001433660us-gaap:LineOfCreditMember2023-01-012023-09-300001433660us-gaap:SecuredDebtMember2024-01-012024-09-300001433660us-gaap:SecuredDebtMember2023-01-012023-09-3000014336602022-12-3100014336602023-09-300001433660us-gaap:CommonStockMember2024-06-300001433660us-gaap:TreasuryStockCommonMember2024-06-300001433660us-gaap:AdditionalPaidInCapitalMember2024-06-300001433660us-gaap:RetainedEarningsMember2024-06-300001433660us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-06-3000014336602024-06-300001433660us-gaap:RetainedEarningsMember2024-07-012024-09-300001433660us-gaap:TreasuryStockCommonMember2024-07-012024-09-300001433660us-gaap:AdditionalPaidInCapitalMember2024-07-012024-09-300001433660us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-07-012024-09-300001433660us-gaap:CommonStockMember2024-09-300001433660us-gaap:TreasuryStockCommonMember2024-09-300001433660us-gaap:AdditionalPaidInCapitalMember2024-09-300001433660us-gaap:RetainedEarningsMember2024-09-300001433660us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-09-300001433660us-gaap:CommonStockMember2023-12-310001433660us-gaap:TreasuryStockCommonMember2023-12-310001433660us-gaap:AdditionalPaidInCapitalMember2023-12-310001433660us-gaap:RetainedEarningsMember2023-12-310001433660us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-310001433660us-gaap:RetainedEarningsMember2024-01-012024-09-300001433660us-gaap:TreasuryStockCommonMember2024-01-012024-09-300001433660us-gaap:AdditionalPaidInCapitalMember2024-01-012024-09-300001433660us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-09-300001433660us-gaap:CommonStockMember2023-06-300001433660us-gaap:TreasuryStockCommonMember2023-06-300001433660us-gaap:AdditionalPaidInCapitalMember2023-06-300001433660us-gaap:RetainedEarningsMember2023-06-300001433660us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-06-3000014336602023-06-300001433660us-gaap:RetainedEarningsMember2023-07-012023-09-300001433660us-gaap:TreasuryStockCommonMember2023-07-012023-09-300001433660us-gaap:AdditionalPaidInCapitalMember2023-07-012023-09-300001433660us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-012023-09-300001433660us-gaap:CommonStockMember2023-09-300001433660us-gaap:TreasuryStockCommonMember2023-09-300001433660us-gaap:AdditionalPaidInCapitalMember2023-09-300001433660us-gaap:RetainedEarningsMember2023-09-300001433660us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-09-300001433660us-gaap:CommonStockMember2022-12-310001433660us-gaap:TreasuryStockCommonMember2022-12-310001433660us-gaap:AdditionalPaidInCapitalMember2022-12-310001433660us-gaap:RetainedEarningsMember2022-12-310001433660us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310001433660us-gaap:RetainedEarningsMember2023-01-012023-09-300001433660us-gaap:TreasuryStockCommonMember2023-01-012023-09-300001433660us-gaap:AdditionalPaidInCapitalMember2023-01-012023-09-300001433660us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-09-300001433660jbt:PurchaseOptionOneMemberjbt:MarelMember2024-09-300001433660jbt:PurchaseOptionTwoMemberjbt:MarelMember2024-09-300001433660jbt:PurchaseOptionThreeMemberjbt:MarelMember2024-09-300001433660jbt:MarelMember2024-01-012024-09-3000014336602023-08-012023-08-010001433660us-gaap:CustomerRelationshipsMember2024-09-300001433660us-gaap:CustomerRelationshipsMember2023-12-310001433660jbt:PatentsAndAcquiredTechnologyMember2024-09-300001433660jbt:PatentsAndAcquiredTechnologyMember2023-12-310001433660us-gaap:TrademarksMember2024-09-300001433660us-gaap:TrademarksMember2023-12-310001433660us-gaap:OtherIntangibleAssetsMember2024-09-300001433660us-gaap:OtherIntangibleAssetsMember2023-12-310001433660us-gaap:PensionPlansDefinedBenefitMember2024-07-012024-09-300001433660us-gaap:PensionPlansDefinedBenefitMember2023-07-012023-09-300001433660us-gaap:PensionPlansDefinedBenefitMember2024-01-012024-09-300001433660us-gaap:PensionPlansDefinedBenefitMember2023-01-012023-09-300001433660us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2024-01-012024-09-300001433660us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2024-09-300001433660us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2023-12-310001433660us-gaap:ConvertibleDebtMemberjbt:ConvertibleSeniorNotesMember2024-01-012024-09-300001433660us-gaap:ConvertibleDebtMemberjbt:ConvertibleSeniorNotesMember2024-09-300001433660us-gaap:ConvertibleDebtMemberjbt:ConvertibleSeniorNotesMember2023-12-310001433660us-gaap:ConvertibleDebtMemberjbt:ConvertibleSeniorNotesMember2024-07-012024-09-300001433660us-gaap:ConvertibleDebtMemberjbt:ConvertibleSeniorNotesMember2023-07-012023-09-300001433660us-gaap:ConvertibleDebtMemberjbt:ConvertibleSeniorNotesMember2023-01-012023-09-300001433660us-gaap:ConvertibleDebtMemberjbt:ConvertibleSeniorNotesMember2021-05-280001433660us-gaap:ConvertibleDebtMemberjbt:ConvertibleSeniorNotesMember2021-05-282021-05-280001433660jbt:ConvertibleNoteHedgeMemberjbt:ConvertibleSeniorNotesMemberus-gaap:ConvertibleDebtMember2021-05-282021-05-280001433660jbt:ConvertibleNoteHedgeMemberjbt:ConvertibleSeniorNotesMemberus-gaap:ConvertibleDebtMember2021-05-280001433660jbt:ConvertibleNoteHedgeMemberjbt:ConvertibleSeniorNotesMemberus-gaap:ConvertibleDebtMember2024-09-300001433660jbt:ConvertibleNoteHedgeMemberjbt:ConvertibleSeniorNotesMemberus-gaap:ConvertibleDebtMember2024-01-012024-09-300001433660jbt:ConvertibleNoteWarrantsMemberjbt:ConvertibleSeniorNotesMemberus-gaap:ConvertibleDebtMember2024-09-300001433660jbt:ConvertibleNoteWarrantsMemberjbt:ConvertibleSeniorNotesMemberus-gaap:ConvertibleDebtMember2024-01-012024-09-3000014336602024-04-0400014336602024-04-042024-04-040001433660jbt:DebtInstrumentTrancheOneMember2024-04-042024-04-040001433660jbt:DebtInstrumentTrancheTwoMember2024-04-042024-04-040001433660jbt:DebtInstrumentTrancheThreeMember2024-04-042024-04-040001433660us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2024-06-300001433660us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-06-300001433660us-gaap:AccumulatedTranslationAdjustmentMember2024-06-300001433660us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2024-07-012024-09-300001433660us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-07-012024-09-300001433660us-gaap:AccumulatedTranslationAdjustmentMember2024-07-012024-09-300001433660us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2024-09-300001433660us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-09-300001433660us-gaap:AccumulatedTranslationAdjustmentMember2024-09-300001433660us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-06-300001433660us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-06-300001433660us-gaap:AccumulatedTranslationAdjustmentMember2023-06-300001433660us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-07-012023-09-300001433660us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-07-012023-09-300001433660us-gaap:AccumulatedTranslationAdjustmentMember2023-07-012023-09-300001433660us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-09-300001433660us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-09-300001433660us-gaap:AccumulatedTranslationAdjustmentMember2023-09-300001433660us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-12-310001433660us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-12-310001433660us-gaap:AccumulatedTranslationAdjustmentMember2023-12-310001433660us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2024-01-012024-09-300001433660us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-01-012024-09-300001433660us-gaap:AccumulatedTranslationAdjustmentMember2024-01-012024-09-300001433660us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-12-310001433660us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-12-310001433660us-gaap:AccumulatedTranslationAdjustmentMember2022-12-310001433660us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-01-012023-09-300001433660us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-01-012023-09-300001433660us-gaap:AccumulatedTranslationAdjustmentMember2023-01-012023-09-3000014336602024-01-012024-09-3000014336602025-01-012024-09-300001433660jbt:RecurringMember2024-07-012024-09-300001433660jbt:RecurringMember2023-07-012023-09-300001433660jbt:RecurringMember2024-01-012024-09-300001433660jbt:RecurringMember2023-01-012023-09-300001433660jbt:NonRecurringMember2024-07-012024-09-300001433660jbt:NonRecurringMember2023-07-012023-09-300001433660jbt:NonRecurringMember2024-01-012024-09-300001433660jbt:NonRecurringMember2023-01-012023-09-300001433660srt:NorthAmericaMember2024-07-012024-09-300001433660srt:NorthAmericaMember2023-07-012023-09-300001433660srt:NorthAmericaMember2024-01-012024-09-300001433660srt:NorthAmericaMember2023-01-012023-09-300001433660jbt:EuropeMiddleEastandAfricaMember2024-07-012024-09-300001433660jbt:EuropeMiddleEastandAfricaMember2023-07-012023-09-300001433660jbt:EuropeMiddleEastandAfricaMember2024-01-012024-09-300001433660jbt:EuropeMiddleEastandAfricaMember2023-01-012023-09-300001433660srt:AsiaPacificMember2024-07-012024-09-300001433660srt:AsiaPacificMember2023-07-012023-09-300001433660srt:AsiaPacificMember2024-01-012024-09-300001433660srt:AsiaPacificMember2023-01-012023-09-300001433660srt:LatinAmericaMember2024-07-012024-09-300001433660srt:LatinAmericaMember2023-07-012023-09-300001433660srt:LatinAmericaMember2024-01-012024-09-300001433660srt:LatinAmericaMember2023-01-012023-09-300001433660us-gaap:TransferredAtPointInTimeMember2024-07-012024-09-300001433660us-gaap:TransferredAtPointInTimeMember2023-07-012023-09-300001433660us-gaap:TransferredAtPointInTimeMember2024-01-012024-09-300001433660us-gaap:TransferredAtPointInTimeMember2023-01-012023-09-300001433660us-gaap:TransferredOverTimeMember2024-07-012024-09-300001433660us-gaap:TransferredOverTimeMember2023-07-012023-09-300001433660us-gaap:TransferredOverTimeMember2024-01-012024-09-300001433660us-gaap:TransferredOverTimeMember2023-01-012023-09-3000014336602026-01-012024-09-300001433660us-gaap:FairValueMeasurementsRecurringMember2024-09-300001433660us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2024-09-300001433660us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2024-09-300001433660us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2024-09-300001433660us-gaap:FairValueMeasurementsRecurringMember2023-12-310001433660us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2023-12-310001433660us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2023-12-310001433660us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2023-12-310001433660us-gaap:OtherCurrentAssetsMember2024-09-3000014336602023-01-012023-12-310001433660us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMember2024-01-012024-09-300001433660us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMember2024-09-300001433660us-gaap:ForeignExchangeContractMemberus-gaap:SalesMember2024-07-012024-09-300001433660us-gaap:ForeignExchangeContractMemberus-gaap:SalesMember2023-07-012023-09-300001433660us-gaap:ForeignExchangeContractMemberus-gaap:SalesMember2024-01-012024-09-300001433660us-gaap:ForeignExchangeContractMemberus-gaap:SalesMember2023-01-012023-09-300001433660us-gaap:ForeignExchangeContractMemberus-gaap:CostOfSalesMember2024-07-012024-09-300001433660us-gaap:ForeignExchangeContractMemberus-gaap:CostOfSalesMember2023-07-012023-09-300001433660us-gaap:ForeignExchangeContractMemberus-gaap:CostOfSalesMember2024-01-012024-09-300001433660us-gaap:ForeignExchangeContractMemberus-gaap:CostOfSalesMember2023-01-012023-09-300001433660us-gaap:ForeignExchangeContractMemberus-gaap:OtherIncomeMember2024-07-012024-09-300001433660us-gaap:ForeignExchangeContractMemberus-gaap:OtherIncomeMember2023-07-012023-09-300001433660us-gaap:ForeignExchangeContractMemberus-gaap:OtherIncomeMember2024-01-012024-09-300001433660us-gaap:ForeignExchangeContractMemberus-gaap:OtherIncomeMember2023-01-012023-09-300001433660us-gaap:DesignatedAsHedgingInstrumentMemberjbt:ForwardStartingInterestRateSwapMemberus-gaap:CashFlowHedgingMember2021-09-300001433660us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember2020-05-310001433660us-gaap:DesignatedAsHedgingInstrumentMemberjbt:ForwardStartingInterestRateSwapMemberus-gaap:CashFlowHedgingMember2020-05-310001433660us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-09-300001433660us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-01-012024-09-300001433660us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-12-310001433660us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-12-310001433660us-gaap:PerformanceGuaranteeMember2024-09-300001433660us-gaap:FinancialGuaranteeMember2024-09-300001433660jbt:CustomersFinancingArrangementsGuaranteeMember2024-09-300001433660us-gaap:EmployeeSeveranceMember2023-12-310001433660us-gaap:EmployeeSeveranceMember2024-01-012024-03-310001433660us-gaap:EmployeeSeveranceMember2024-04-012024-06-300001433660us-gaap:EmployeeSeveranceMember2024-07-012024-09-300001433660us-gaap:EmployeeSeveranceMember2024-09-300001433660us-gaap:OtherRestructuringMember2023-12-310001433660us-gaap:OtherRestructuringMember2024-01-012024-03-310001433660us-gaap:OtherRestructuringMember2024-04-012024-06-300001433660us-gaap:OtherRestructuringMember2024-07-012024-09-300001433660us-gaap:OtherRestructuringMember2024-09-3000014336602024-01-012024-03-3100014336602024-04-012024-06-300001433660us-gaap:EmployeeSeveranceMember2024-01-012024-09-300001433660us-gaap:OtherRestructuringMember2024-01-012024-09-300001433660jbt:ManufacturingFacilityLeaseMembersrt:AffiliatedEntityMember2024-09-300001433660jbt:ManufacturingFacilityLeaseMembersrt:AffiliatedEntityMember2023-12-310001433660us-gaap:SubsequentEventMembersrt:ScenarioForecastMemberus-gaap:LineOfCreditMember2024-10-012024-12-310001433660us-gaap:SubsequentEventMembersrt:ScenarioForecastMemberus-gaap:LineOfCreditMember2024-12-310001433660us-gaap:SubsequentEventMembersrt:ScenarioForecastMemberus-gaap:SecuredDebtMember2024-10-012024-12-310001433660us-gaap:SubsequentEventMembersrt:ScenarioForecastMemberus-gaap:SecuredDebtMember2024-12-310001433660us-gaap:SubsequentEventMemberus-gaap:RevolvingCreditFacilityMembersrt:ScenarioForecastMemberus-gaap:LineOfCreditMember2024-10-012024-12-310001433660srt:MinimumMemberus-gaap:SubsequentEventMembersrt:ScenarioForecastMemberus-gaap:SecuredDebtMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2024-10-012024-12-310001433660srt:MaximumMemberus-gaap:SubsequentEventMembersrt:ScenarioForecastMemberus-gaap:SecuredDebtMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2024-10-012024-12-31

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 September 30, 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 1-34036
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 filer☒Accelerated filer☐
Non-accelerated filer☐Smaller reporting company☐
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
ClassOutstanding at October 17, 2024
Common Stock, par value $0.01 per share31,842,638
1

PART I — FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

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

Three Months Ended
September 30,		Nine Months Ended
September 30,
(In millions, except per share data)2024202320242023
Revenue:
Product revenue$409.1 $362.1 $1,127.2 $1,095.9 
Service revenue44.7 41.5 121.2 123.9 
Total revenue453.8 403.6 1,248.4 1,219.8 
Operating expenses:
Cost of products265.4 237.0 734.6 724.0 
Cost of services24.8 21.8 66.7 70.9 
Selling, general and administrative expense117.0 101.5 343.3 305.6 
Restructuring expense(0.2)6.4 1.1 9.7 
Operating income 46.8 36.9 102.7 109.6 
Pension expense, other than service cost1.0 0.2 3.0 0.6 
Interest income5.9 4.6 17.3 6.7 
Interest expense4.1 5.5 11.1 21.2 
Income from continuing operations before income taxes47.6 35.8 105.9 94.5 
Income tax provision9.5 4.6 14.3 17.8 
Equity in net earnings of unconsolidated affiliate— (0.1)(0.1)(0.1)
Income from continuing operations38.1 31.1 91.5 76.6 
Income from discontinued operations, net of taxes0.8 410.5 0.9 424.9 
Net income $38.9 $441.6 $92.4 $501.5 
Basic earnings per share from:
Continuing operations$1.19 $0.97 $2.86 $2.39 
Discontinued operations0.03 12.82 0.03 13.28 
Net income $1.22 $13.79 $2.89 $15.67 
Diluted earnings per share from:
Continuing operations$1.18 $0.97 $2.84 $2.39 
Discontinued operations0.03 12.76 0.03 13.22 
Net income$1.21 $13.73 $2.87 $15.61 

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
September 30,		Nine Months Ended
September 30,
(In millions)2024202320242023
Net income$38.9 $441.6 $92.4 $501.5 
Other comprehensive income, net of taxes
Foreign currency translation adjustments28.8 (14.7)7.8 (10.7)
Pension and other postretirement benefits adjustments1.0 0.9 2.6 2.8 
Derivatives designated as hedges(2.8)(1.1)(5.4)(2.4)
Other comprehensive income 27.0 (14.9)5.0 (10.3)
Comprehensive income$65.9 $426.7 $97.4 $491.2 

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)September 30, 2024December 31, 2023
Assets:
Current Assets:
Cash and cash equivalents$534.5 $483.3 
Trade receivables, net of allowances237.9 214.4 
Contract assets96.7 74.5 
Inventories259.0 238.9 
Other current assets77.5 89.1 
Total current assets1,205.6 1,100.2 
Property, plant and equipment, net of accumulated depreciation of $329.2 and $316.7 respectively
243.3 248.0 
Goodwill785.8 779.5 
Intangible assets, net358.8 388.9 
Other assets195.5 193.8 
Total Assets$2,789.0 $2,710.4 
Liabilities and Stockholders' Equity:
Current Liabilities:
Accounts payable, trade and other$144.7 $134.6 
Advance and progress payments159.1 172.0 
Accrued payroll45.2 59.7 
Other current liabilities124.4 118.1 
Total current liabilities473.4 484.4 
Long-term debt648.3 646.4 
Accrued pension and other postretirement benefits, less current portion22.4 24.6 
Other liabilities59.8 66.1 
Commitments and contingencies (Note 13)
Stockholders' Equity:
Preferred stock, $0.01 par value; 20,000,000 shares authorized; no shares issued in 2024 or 2023
— — 
Common stock, $0.01 par value; 120,000,000 shares authorized; September 30, 2024: 31,861,680 issued, and 31,840,900 outstanding; December 31, 2023: 31,861,680 issued, and 31,789,698 outstanding
0.3 0.3 
Common stock held in treasury, at cost September 30, 2024: 20,780 shares; December 31, 2023: 71,982 shares
(2.1)(7.1)
Additional paid-in capital231.4 227.9 
Retained earnings1,546.3 1,463.6 
Accumulated other comprehensive loss(190.8)(195.8)
Total stockholders' equity1,585.1 1,488.9 
Total Liabilities and Stockholders' Equity$2,789.0 $2,710.4 

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)

Nine Months Ended September 30,
(In millions)20242023
Cash flows from continuing operating activities:
Net income $92.4 $501.5 
Income from discontinued operations, net of taxes0.9 424.9 
Income from continuing operations91.5 76.6 
Adjustments to reconcile income from continuing operations to cash provided by continuing operating activities:
Depreciation and amortization66.5 69.3 
Stock-based compensation11.4 7.1 
Other9.3 6.7 
Changes in operating assets and liabilities:
Trade receivables, net and contract assets(47.4)2.3 
Inventories(16.6)7.9 
Accounts payable, trade and other9.7 (43.6)
Advance and progress payments(10.5)(0.2)
Accrued pension and other postretirement benefits, net(2.3)(11.2)
Other assets and liabilities, net(7.7)(19.3)
Cash provided by continuing operating activities103.9 95.6 
Cash flows from continuing investing activities:
(Payments) proceeds from sale of AeroTech, net(4.8)793.2 
Acquisitions, net of cash acquired— (0.1)
Investment in unconsolidated affiliate— (10.4)
Capital expenditures(27.9)(46.2)
Proceeds from disposal of assets0.9 1.2 
Purchase of Marketable Securities— (125.0)
Cash (required) provided by continuing investing activities(31.8)612.7 
Cash flows from continuing financing activities:
Payments on short-term debt— (0.6)
Net payments for domestic credit facilities— (339.5)
Proceeds from settlement of cross currency swaps— 5.8 
Payment of debt issuance costs for Bridge Credit Agreement(7.1)— 
Payment of debt issuance costs for Term Loan B(2.8)— 
Settlement of taxes withheld on stock-based compensation awards(2.9)(1.7)
Dividends(9.6)(9.7)
Other(0.7)— 
Cash required by continuing financing activities(23.1)(345.7)
Net increase in cash from continuing operations49.0 362.6 
Cash flows from discontinued operations:
Cash provided (required) by operating activities of discontinued operations, net0.8 (28.0)
Cash required by investing activities of discontinued operations, net— (3.4)
Net cash provided (required) by discontinued operations0.8 (31.4)
Effect of foreign exchange rate changes on cash and cash equivalents1.4 (2.6)
Net increase in cash and cash equivalents51.2 328.6 
Cash and cash equivalents from continuing operations, beginning of period483.3 71.7 
Add: Cash and cash equivalents from discontinued operations, beginning of period— 1.4 
Add: Net increase in cash and cash equivalents51.2 328.6 
Less: Cash and cash equivalents from discontinued operations, end of period— — 
Cash and cash equivalents from continuing operations, end of period$534.5 $401.7 
Supplemental cash flow information for continuing operations:
Non-cash investing in capital expenditures, accrued but not paid$0.2 $3.4 

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 September 30, 2024
(In millions)Common StockCommon Stock Held in TreasuryAdditional Paid-In CapitalRetained EarningsAccumulated Other Comprehensive Income (Loss)Total Equity
Balance at June 30, 2024$0.3 $(2.2)$227.9 $1,510.6 $(217.8)$1,518.8 
Net income— — — 38.9 — 38.9 
Issuance of treasury stock— 0.1 (0.1)— — — 
Common stock cash dividends, $0.10 per share
— — — (3.2)— (3.2)
Foreign currency translation adjustments— — — — 28.8 28.8 
Derivatives designated as hedges, net of income taxes of $0.9
— — — — (2.8)(2.8)
Pension and other postretirement liability adjustments, net of income taxes of $(0.3)
— — — — 1.0 1.0 
Stock-based compensation expense— — 3.6 — — 3.6 
Balance at September 30, 2024$0.3 $(2.1)$231.4 $1,546.3 $(190.8)$1,585.1 

Nine Months Ended September 30, 2024
(In millions)Common StockCommon Stock Held in TreasuryAdditional Paid-In CapitalRetained EarningsAccumulated Other Comprehensive Income (Loss)Total Equity
Balance at December 31, 2023$0.3 $(7.1)$227.9 $1,463.6 $(195.8)$1,488.9 
Net income— — — 92.4 — 92.4 
Issuance of treasury stock— 5.0 (5.0)— — — 
Common stock cash dividends, $0.30 per share
— — — (9.7)— (9.7)
Foreign currency translation adjustments
— — — — 7.8 7.8 
Derivatives designated as hedges, net of income taxes of $1.8
— — — — (5.4)(5.4)
Pension and other postretirement liability adjustments, net of income taxes of $(1.0)
— — — — 2.6 2.6 
Stock-based compensation expense— — 11.4 — — 11.4 
Taxes withheld on issuance of stock-based awards— — (2.9)— — (2.9)
Balance at September 30, 2024$0.3 $(2.1)$231.4 $1,546.3 $(190.8)$1,585.1 

6

Three Months Ended September 30, 2023
(In millions)Common StockCommon Stock Held in TreasuryAdditional Paid-In CapitalRetained EarningsAccumulated Other Comprehensive Income (Loss)Total Equity
Balance at June 30, 2023$0.3 $(2.2)$221.3 $947.5 $(199.7)$967.2 
Net income— — — 441.6 — 441.6 
Issuance of treasury stock— 0.1 (0.1)— — — 
Common stock cash dividends, $0.10 per share
— — — (3.5)— (3.5)
Foreign currency translation adjustments, net of income taxes of $0.5
— — — — (14.7)(14.7)
Derivatives designated as hedges, net of income taxes of $0.4
— — — — (1.1)(1.1)
Pension and other postretirement liability adjustments, net of income taxes of $(0.4)
— — — — 0.9 0.9 
Stock-based compensation expense— — 2.8 — — 2.8 
Taxes withheld on issuance of stock-based awards— — (0.1)— — (0.1)
Balance at September 30, 2023$0.3 $(2.1)$223.9 $1,385.6 $(214.6)$1,393.1 

Nine Months Ended September 30, 2023
(In millions)Common StockCommon Stock Held in TreasuryAdditional Paid-In CapitalRetained EarningsAccumulated Other Comprehensive Income (Loss)Total Equity
Balance at December 31, 2022$0.3 $(5.3)$220.7 $894.0 $(204.3)$905.4 
Net income— — — 501.5 — 501.5 
Issuance of treasury stock— 3.2 (3.2)— — — 
Common stock cash dividends, $0.30 per share
— — — (9.9)— (9.9)
Foreign currency translation adjustments, net of income taxes of $1.1
— — — — (10.7)(10.7)
Derivatives designated as hedges, net of income taxes of $0.8
— — — — (2.4)(2.4)
Pension and other postretirement liability adjustments, net of income taxes of $(1.0)
— — — — 2.8 2.8 
Stock-based compensation expense— — 8.1 — — 8.1 
Taxes withheld on issuance of stock-based awards— — (1.7)— — (1.7)
Balance at September 30, 2023$0.3 $(2.1)$223.9 $1,385.6 $(214.6)$1,393.1 

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 industries. The Company designs, produces and services sophisticated products and systems for multi-national and regional customers. 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, 2023, 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.

Discontinued Operations

On August 1, 2023, the Company completed the sale of its former AeroTech business segment ("AeroTech") to Oshkosh Corporation, a Wisconsin corporation (the "Purchaser"). All prior period results from the operations of AeroTech have been reclassified as discontinued operations. Amounts pertaining to results of operations, financial condition and cash flows throughout the document are from the Company's continuing operations unless otherwise noted. Refer to Note 2. Discontinued Operations, for further discussion.

Proposed Merger with Marel hf.

On April 4, 2024, the Company entered into a definitive agreement (the "Transaction Agreement") to make a voluntary takeover offer (the "Offer") for all of the issued and outstanding shares of Marel hf. ("Marel"). The Transaction Agreement includes the terms of the Offer and other important governance, social, and operating items relating to the proposed business combination of JBT and Marel (the "Marel Transaction"). On June 24, 2024, the Offer was launched, providing Marel shareholders until September 2, 2024 to tender their shares. On August 26, 2024, JBT extended the expiration of the Offer to the earlier of November 11, 2024, or three weeks after the date on which all required regulatory clearances are secured, unless the Offer is further extended in accordance with the terms of the Transaction Agreement and applicable laws.

In the Offer, Marel shareholders may exchange each Marel Share, at their election, for (i) cash consideration in the amount of EUR 3.60, (ii) stock consideration consisting of 0.0407 newly and validly issued, fully paid and non-assessable shares of the Company's common stock (the "JBT Offer Shares") or (iii) cash consideration in the amount of EUR 1.26 along with stock consideration consisting of 0.0265 newly and validly issued, fully paid and non-assessable JBT Offer Shares. Elections will be subject to a proration process, such that the Marel shareholders immediately prior to the closing of the Offer will receive an aggregate of approximately EUR 950 million in cash and approximately a 38 percent interest in the combined company.

8

On August 8, 2024, JBT held a special meeting of its stockholders whereby JBT stockholders approved the issuance of the JBT Offer Shares to Marel shareholders in connection with the Marel Transaction. The Marel Transaction, which is expected to close on or about the end of 2024, is subject to the receipt of the required regulatory approvals and the other customary closing conditions.

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.

Change in Accounting Principle

During the fourth quarter of 2023, the Company changed its methodology for valuing certain inventories to the first-in, first-out ("FIFO") cost method from the last-in, first-out ("LIFO") cost method. The effects of the change in accounting principle have been retrospectively applied to all periods presented. This change has no impact on our results of operations for the three and nine months ended September 30, 2024. Refer to Note 1. Summary of Significant Accounting Policies of the Notes to the Consolidated Financial Statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, for further information related to the change in accounting principle.

Recently Issued Accounting Standards Not Yet Adopted

In November 2023, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting - Improvements to Reportable Segment Disclosures ("ASU 2023-07"). The amendments in ASU 2023-07 improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment profit and loss measures, and provide new segment disclosure requirements for entities with a single reportable segment. The amendments in ASU 2023-07 will be applied retrospectively to all prior periods presented in the financial statements and are effective for the Company for the fiscal year beginning January 1, 2024, and interim periods beginning on and after January 1, 2025, with early adoption permitted. The Company is evaluating the effect of adopting ASU 2023-07 on its disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes - Improvements to Income Tax Disclosures, which amends Topic 740, Income Taxes ("ASU 2023-09"). ASU 2023-09 improves the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. The amendments in ASU 2023-09 will become effective for the Company as of January 1, 2025 and will be applied on a prospective basis with the option to apply the standard retrospectively. The Company is evaluating the effect of adopting ASU 2023-09 on its disclosures.


9

NOTE 2. DISCONTINUED OPERATIONS

As disclosed in Note 1, on August 1, 2023, the Company completed the sale of AeroTech to the Purchaser in exchange for cash consideration of $808.2 million (the "Transaction") and recognized a gain on the Transaction of $443.7 million, net of $131.4 million of income taxes.

In connection with the Transaction, the Company and the Purchaser entered into a Transition Services Agreement (the "TSA") for the provision of information technology related services for 12 months and of other services for 6 months to support the transition of the AeroTech business. Services under the TSA have been completed and the TSA effectively concluded in the quarter ended September 30, 2024. TSA income was recognized as services were performed, and the income earned was recorded in Selling, general and administrative expense within the Condensed Consolidated Statements of Income to offset the costs incurred to support the TSA. During the nine months ended September 30, 2024, the Company's cash inflows from the Purchaser related to the TSA were $5.0 million.

Summarized Discontinued Operations Financial Information

The following table summarizes the results of operations classified as discontinued operations, net of taxes, in the Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2023.

(In millions)Three Months Ended
September 30, 2023		Nine Months Ended
September 30, 2023
Revenue$38.8 $344.1 
Operating expenses:
Cost of sales36.9 285.3 
Selling, general and administrative expense11.5 45.3 
Operating income(9.6)13.5 
Interest expense0.4 2.0 
Gain on sale of AeroTech551.0 551.0 
Income from discontinued operations before income taxes541.0 562.5 
Income tax provision130.5 137.6 
Income from discontinued operations, net of taxes$410.5 $424.9 

In accordance with ASC 205-20, Allocation of Interest to Discontinued Operations, the Company elected to allocate interest expense to discontinued operations for the Company's debt that was not directly attributed to the AeroTech business. Interest expense was allocated based on a ratio of net assets of discontinued operations to the sum of consolidated net assets and consolidated debt.

10

NOTE 3. GOODWILL AND INTANGIBLE ASSETS

The changes in the carrying amount of goodwill were as follows:
(In millions)
Balance as of December 31, 2023$779.5 
Currency translation6.3 
Balance as of September 30, 2024$785.8 

Intangible assets consisted of the following:
September 30, 2024December 31, 2023
(In millions)Carrying AmountAccumulated AmortizationCarrying AmountAccumulated Amortization
Customer relationship$427.5 $167.1 $424.6 $148.0 
Patents and acquired technology176.2 123.4 173.3 109.1 
Trademarks55.1 20.0 54.3 16.7 
Non-amortizing intangible assets10.5 — 10.5 — 
Other8.7 8.7 8.8 8.8 
Total intangible assets$678.0 $319.2 $671.5 $282.6 


NOTE 4. INVENTORIES

Inventories consisted of the following:
(In millions)September 30, 2024December 31, 2023
Raw materials $36.7 $28.7 
Work in process 63.8 48.1 
Finished goods 178.9 181.8 
Gross inventories before valuation adjustments 279.4 258.6 
Valuation adjustments(20.4)(19.7)
Net inventories $259.0 $238.9 


NOTE 5. PENSION

Components of net periodic benefit cost were as follows:
Three Months Ended
September 30,		Nine Months Ended
September 30,
(In millions)2024202320242023
Service cost$0.3 $0.2 $0.9 $0.8 
Interest cost3.1 3.2 9.3 9.7 
Expected return on plan assets(3.4)(4.3)(10.3)(12.9)
Amortization of net actuarial losses1.3 1.3 4.0 3.8 
Net periodic cost$1.3 $0.4 $3.9 $1.4 

During the nine months ended September 30, 2024, the Company made contributions of $2.3 million to its pension plans. The Company expects to contribute $3.5 million in 2024 primarily to the non-U.S. pension plans.



NOTE 6. DEBT

The components of the Company's borrowings were as follows:
(In millions)Maturity DateSeptember 30, 2024December 31, 2023
Revolving credit facility (1)
December 14, 2026$250.0 $250.0 
Less: unamortized debt issuance costs(0.5)(0.8)
Revolving credit facility, net$249.5 $249.2 
Convertible senior notes (2)
May 15, 2026$402.5 $402.5 
Less: unamortized debt issuance costs(3.7)(5.3)
Convertible senior notes, net$398.8 $397.2 
Long-term debt, net$648.3 $646.4 
(1) Weighted-average interest rate at September 30, 2024 was 6.45%.
(2) Effective interest rate for the Notes (as defined below) for the quarter ended September 30, 2024 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
September 30,		Nine Months Ended
September 30,
(In millions)2024202320242023
Contractual interest expense$0.3 $0.3 $0.8 $0.8 
Interest cost related to amortization of issuance costs0.6 0.6 1.7 1.7 
Total interest expense$0.9 $0.9 $2.5 $2.5 

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 Condensed Consolidated Balance Sheet as of September 30, 2024.

12

Warrant Transactions

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.

Bridge Credit Agreement

In connection with the Marel Transaction, on April 4, 2024, the Company entered into a bridge credit agreement with certain financial institutions (the "Bridge Credit Agreement") that committed to provide the Company with secured bridge financing in an aggregate principal amount of €1.9 billion. During the three and nine months ended September 30, 2024, the Company recognized $1.2 million and $2.4 million, respectively, of financing costs associated with the Bridge Credit Agreement, primarily in Interest expense in the Condensed Consolidated Statements of Income.

If drawn, loans under the Bridge Credit Agreement accrue interest at the Euro Interbank Offered Rate plus 2.25% per annum, increasing by 0.50% per annum at the end of the first 90 day period after the initial borrowing date and by an additional 0.50% per annum at the end of each 90 day period thereafter until the maturity date of the Bridge Credit Agreement. Any such drawn amounts and the amount of the undrawn and available commitments are also subject to a duration fee that accrues daily at a rate of 0.75% for the period of time from 90 days after the initial borrowing date until the 180th day after the initial borrowing date, 1.00% for the period of time from 180 days after the initial borrowing date until the 270th day after the initial borrowing date and 1.25% for the period of time from 270 days after the initial borrowing date until the maturity date of the Bridge Credit Agreement. The maturity of the Bridge Credit Agreement is 364 days after the initial borrowing of any loans thereunder. The Company may voluntarily prepay outstanding loans under the Bridge Credit Agreement, if drawn, at any time without premium or penalty.


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 September 30, 2024 and 2023 by component are shown in the following tables:

(In millions)
Pension and Other Postretirement Benefits (1)
Derivatives Designated as Hedges (1)
Foreign Currency Translation
Total (1)
Beginning balance, June 30, 2024$(131.1)$6.6 $(93.3)$(217.8)
Other comprehensive income (loss) before reclassification— (0.7)28.8 28.1 
Amounts reclassified from accumulated other comprehensive income1.0 (2.1)— (1.1)
Ending balance, September 30, 2024$(130.1)$3.8 $(64.5)$(190.8)
(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 September 30, 2024 were $1.3 million of charges to pension expense, other than service cost, net of $0.3 million in benefit for income taxes. Reclassification adjustments for derivatives designated as hedges for the same period were $2.8 million of benefit in interest expense, net of $0.7 million income tax provision.

13

(In millions)
Pension and Other Postretirement Benefits (1)
Derivatives Designated as Hedges (1)
Foreign Currency Translation (1)
Total (1)
Beginning balance, June 30, 2023$(129.0)$13.5 $(84.2)$(199.7)
Other comprehensive income (loss) before reclassification— 1.1 (14.6)(13.5)
Amounts reclassified from accumulated other comprehensive income0.9 (2.2)(0.1)(1.4)
Ending balance, September 30, 2023$(128.1)$12.4 $(98.9)$(214.6)
(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 September 30, 2023 were $1.3 million of charges to pension expense, other than service cost, net of $0.4 million income tax benefit. Reclassification adjustments for derivatives designated as hedges for the same period were $2.9 million of benefit in interest expense, net of $0.7 million income tax provision. Reclassification adjustments for foreign currency translation related to net investment hedges for the three months ended September 30, 2023 were immaterial.

Changes in the AOCI balances for the nine months ended September 30, 2024 and 2023 by component are shown in the following tables:
(In millions)
Pension and Other Postretirement Benefits (1)
Derivatives Designated as Hedges (1)
Foreign Currency Translation
Total (1)
Beginning balance, December 31, 2023$(132.7)$9.2 $(72.3)$(195.8)
Other comprehensive income before reclassification(0.4)1.0 7.8 8.4 
Amounts reclassified from accumulated other comprehensive income3.0 (6.4)— (3.4)
Ending balance, September 30, 2024$(130.1)$3.8 $(64.5)$(190.8)
(1) All amounts are net of income taxes.

Reclassification adjustments from AOCI into earnings for pension and other postretirement benefit plans for the nine months ended September 30, 2024 were $4.0 million of charges to pension expense, other than service cost, net of $1.0 million in benefit for income taxes. Reclassification adjustments for derivatives designated as hedges for the same period were $8.6 million of benefit in interest expense, net of $2.2 million income tax provision.

(In millions)
Pension and Other Postretirement Benefits (1)
Derivatives Designated as Hedges (1)
Foreign Currency Translation (1)
Total (1)
Beginning balance, December 31, 2022$(130.9)$14.8 $(88.2)$(204.3)
Other comprehensive income before reclassification— 3.5 (9.6)(6.1)
Amounts reclassified from accumulated other comprehensive income2.8 (5.9)(1.1)(4.2)
Ending balance, September 30, 2023$(128.1)$12.4 $(98.9)$(214.6)
(1) All amounts are net of income taxes.

Reclassification adjustments from AOCI into earnings for pension and other postretirement benefit plans for the nine months ended September 30, 2023 were $3.8 million of charges to pension expense, other than service cost, net of $1.0 million income tax benefit. Reclassification adjustments for derivatives designated as hedges for the same period were $7.9 million of benefit in interest expense, net of $2.0 million income tax provision. Reclassification adjustments for foreign currency translation related to net investment hedges for the nine months ended September 30, 2023 were $1.5 million of benefit in interest expense, net of $0.4 million income tax provision.


14

NOTE 8. REVENUE RECOGNITION

Transaction price allocated to remaining performance obligations

The Company has estimated that $698.1 million in revenue is expected to be recognized in future periods related to remaining performance obligations from the Company's contracts with customers outstanding as of September 30, 2024. The Company expects to complete these obligations and recognize 48% as revenue in 2024, 49% as revenue in 2025, and the remainder after 2025.

Disaggregation of Revenue

In the following table, revenue is disaggregated by type of good or service, primary geographical market, and timing of recognition. The table also includes a reconciliation of the disaggregated revenue to total revenue.

Three Months Ended September 30,Nine Months Ended
September 30,
(In millions)2024202320242023
Type of Good or Service
Recurring (1)
$213.1 $202.7 $613.7 $639.1 
Non-recurring (1)
240.7 200.9 634.7 580.7 
Total453.8 403.6 1,248.4 1,219.8 
Geographical Region (2)
North America261.9 238.9 731.7 737.6 
Europe, Middle East and Africa122.7 101.6 332.1 300.0 
Asia Pacific46.1 37.0 116.5 108.0 
Central and South America23.1 26.1 68.1 74.2 
Total453.8 403.6 1,248.4 1,219.8 
Timing of Recognition
Point in Time224.9 200.8 614.3 619.6 
Over Time228.9 202.8 634.1 600.2 
Total453.8 403.6 1,248.4 1,219.8 
(1) Recurring revenue includes revenue from aftermarket parts and services, re-build services on customer owned equipment, operating leases of equipment, and subscription-based software applications. Non-recurring revenue includes new equipment and installation and the sale of software licenses.
(2) Geographical region represents the region in which the end customer resides.

Contract balances

The timing of revenue recognition, billings and cash collections results in trade receivables, contract assets, and advance and progress payments (contract liabilities). Contract assets exist when revenue recognition occurs prior to billings. Contract assets are transferred to trade receivables when the right to payment becomes unconditional (i.e., when receipt of the amount is dependent only on the passage of time). Conversely, the Company often receives payments from its customers before revenue is recognized, resulting in contract liabilities. These assets and liabilities are reported on the Condensed Consolidated Balance Sheets as Contract assets and within Advance and progress payments, respectively, on a contract-by-contract net basis at the end of each reporting period.

15

Contract asset and liability balances for the period were as follows:
Balances as of
(In millions)September 30, 2024December 31, 2023
Contract Assets$96.7 $74.5 
Contract Liabilities146.9 156.5 
September 30, 2023December 31, 2022
Contract Assets69.3 65.1 
Contract Liabilities158.4 161.2 

The revenue recognized during the nine months ended September 30, 2024 and 2023 that was included in contract liabilities at the beginning of the period amounted to $137.1 million and $143.1 million, respectively. The remainder of the change from December 31, 2023 and December 31, 2022 is driven by the timing of advance and milestone payments received from customers, customer returns and fulfillment of performance obligations. There were no significant changes in the contract balances other than those described above.

NOTE 9. EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share from net income for the respective periods and basic and diluted shares outstanding:
Three Months Ended September 30,Nine Months Ended
September 30,
(In millions, except per share data)2024202320242023
Basic earnings per share:
Income from continuing operations$38.1 $31.1 $91.5 $76.6 
Income from discontinued operations, net of taxes0.8 410.5 0.9 424.9 
Net income $38.9 $441.6 $92.4 $501.5 
Weighted average number of shares outstanding32.0 32.0 32.0 32.0 
Basic earnings per share from:
Continuing operations$1.19 $0.97 $2.86 $2.39 
Discontinued operations0.03 12.82 0.03 13.28 
Net income$1.22 $13.79 $2.89 $15.67 
Diluted earnings per share:
Income from continuing operations$38.1 $31.1 $91.5 $76.6 
Income from discontinued operations, net of taxes0.8 410.5 0.9 424.9 
Net income $38.9 $441.6 $92.4 $501.5 
Weighted average number of shares outstanding32.0 32.0 32.0 32.0 
Effect of dilutive securities:
Restricted stock0.2 0.2 0.2 0.1 
Total shares and dilutive securities32.2 32.2 32.2 32.1 
Diluted earnings per share from:
Continuing operations$1.18 $0.97 $2.84 $2.39 
Discontinued operations0.03 12.76 0.03 13.22 
Net income$1.21 $13.73 $2.87 $15.61 


16

NOTE 10. FAIR VALUE OF FINANCIAL INSTRUMENTS

The fair value framework requires the categorization of assets and liabilities into three levels based upon the assumptions (inputs) used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. The three levels are defined as follows:

•Level 1: Unadjusted quoted prices in active markets for identical assets and liabilities that the Company can assess at the measurement date.
•Level 2: Observable inputs other than those included in Level 1 that are observable for the asset or liability, either directly or indirectly. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets.
•Level 3: Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability.

Financial assets and financial liabilities measured at fair value on a recurring basis are as follows:
As of September 30, 2024As of December 31, 2023
(In millions)TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3
Assets:
Investments$13.2 $13.2 $— $— $10.8 $10.8 $— $— 
Derivatives14.7 — 14.7 — 25.9 — 25.9 — 
Total assets$27.9 $13.2 $14.7 $— $36.7 $10.8 $25.9 $— 
Liabilities:
Derivatives$1.4 $— $1.4 $— $3.0 $— $3.0 $— 
Total liabilities$1.4 $— $1.4 $— $3.0 $— $3.0 $— 

Investments represent securities held in a trust for the non-qualified deferred compensation plan. Investments are classified as trading securities and are valued based on quoted prices in active markets for identical assets that the Company has the ability to access. As of September 30, 2024, $1.0 million of investments are recorded in Other current assets in the Condensed Consolidated Balance Sheets related to investments that are expected to be redeemed within the next twelve months. The remaining investments are reported separately in Other assets in the Condensed Consolidated Balance Sheets. Investments include an unrealized gain of $1.5 million and $1.7 million as of September 30, 2024 and December 31, 2023, respectively.

The Company uses the income approach to measure the fair value of derivative instruments on a recurring basis. This approach calculates the present value of the future cash flow by measuring the change between the derivative contract rate and the published market indicative currency rate, multiplied by the contract notional values, and applying an appropriate discount rate as well as a factor of credit risk.

The Notes are not registered securities nor listed on any securities exchange but may be traded by qualified institutional buyers. The fair value of the Notes estimated using Level 2 inputs was $378.9 million as of September 30, 2024.

The carrying amounts of cash and cash equivalents, trade receivables and payables, marketable securities, as well as financial instruments included in other current assets and other current liabilities, approximate fair values because of their short-term maturities.

The carrying values of the Company's revolving credit facility recorded in long-term debt on the Condensed Consolidated Balance Sheets approximate their fair values due to their variable interest rates.

NOTE 11. DERIVATIVE FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

Derivative financial instruments

All derivatives are recorded as assets or liabilities in the Condensed Consolidated Balance Sheets at their respective fair values. For derivatives designated as cash flow hedges, the unrealized gain or loss related to the derivatives is recorded in Other comprehensive income (loss) until the hedged transaction affects earnings. The Company assesses at the inception of the hedge, whether the derivative in the hedging transaction will be highly effective in offsetting changes in cash flows of the hedged item. Changes in the fair value of derivatives that do not meet the criteria for designation as a hedge are recognized in earnings.
17


Foreign Exchange: The Company manufactures and sells products in a number of countries throughout the world and, as a result, the Company is exposed to movements in foreign currency exchange rates. The Company's major foreign currency exposures involve the markets in Western Europe, South America and Asia. Some sales and purchase contracts contain embedded derivatives due to the nature of doing business in certain jurisdictions, which the Company takes into consideration as part of its risk management policy. The purpose of foreign currency hedging activities is to manage the economic impact of exchange rate volatility associated with anticipated foreign currency purchases and sales made in the normal course of business. The Company primarily utilizes forward foreign exchange contracts with maturities of less than one year in managing this foreign exchange rate risk. The Company has not designated these forward foreign exchange contracts, which had a notional value at September 30, 2024 of $546.0 million, as hedges and therefore does not apply hedge accounting.

The fair values of our foreign currency derivative assets are recorded within other current assets and other assets, and the fair values of foreign currency derivative liabilities are recorded within other current liabilities and other liabilities. The following table presents the fair value of foreign currency derivatives and embedded derivatives included within the Condensed Consolidated Balance Sheets:
As of September 30, 2024As of December 31, 2023
(In millions)Derivative AssetsDerivative LiabilitiesDerivative AssetsDerivative Liabilities
Total$9.5 $1.4 $13.6 $3.0 

A master netting arrangement allows counterparties to net settle amounts owed to each other as a result of separate offsetting derivative transactions. The Company enters into master netting arrangements with its counterparties when possible to mitigate credit risk in derivative transactions by permitting it to net settle for transactions with the same counterparty. However, the Company does not net settle with such counterparties. As a result, derivatives are presented at their gross fair values in the Condensed Consolidated Balance Sheets.

As of September 30, 2024 and December 31, 2023, information related to these offsetting arrangements was as follows:

(In millions)As of September 30, 2024
Offsetting of AssetsGross Amounts of Recognized AssetsGross Amounts Offset in the Consolidated Balance SheetsNet Presented in the Consolidated Balance SheetsAmount Subject to Master Netting AgreementNet Amount
Derivatives$14.6 $— $14.6 $(0.9)$13.7 
(In millions)As of September 30, 2024
Offsetting of LiabilitiesGross Amounts of Recognized LiabilitiesGross Amounts Offset in the Consolidated Balance SheetsNet Presented in the Consolidated Balance SheetsAmount Subject to Master Netting AgreementNet Amount
Derivatives$1.0 $— $1.0 $(0.9)$0.1 

(In millions)As of December 31, 2023
Offsetting of AssetsGross Amounts of Recognized AssetsGross Amounts Offset in the Consolidated Balance SheetsNet Presented in the Consolidated Balance SheetsAmount Subject to Master Netting AgreementNet Amount
Derivatives$25.8 $— $25.8 $(2.3)$23.5 
(In millions)As of December 31, 2023
Offsetting of LiabilitiesGross Amounts of Recognized LiabilitiesGross Amounts Offset in the Consolidated Balance SheetsNet Presented in the Consolidated Balance SheetsAmount Subject to Master Netting AgreementNet Amount
Derivatives$2.3 $— $2.3 $(2.3)$— 

18

The following table presents the location and amount of the gain (loss) on foreign currency derivatives and on the remeasurement of assets and liabilities denominated in foreign currencies, as well as the net impact recognized in the Condensed Consolidated Statements of Income: 

Derivatives Not Designated as Hedging InstrumentsLocation of Gain (Loss) Recognized in Income on DerivativesAmount of Gain (Loss) Recognized in Income
Three Months Ended September 30,Nine Months Ended September 30,
(In millions)2024202320242023
Foreign exchange contractsRevenue$0.6 $1.8 $(3.8)$(0.1)
Foreign exchange contractsCost of sales0.3 (2.1)2.5 (0.7)
Foreign exchange contractsSelling, general and administrative expense0.1 0.4 (0.9)0.6 
Total1.0 0.1 (2.2)(0.2)
Remeasurement of assets and liabilities in foreign currencies(2.5)1.0 (1.4)0.7 
Net gain (loss)$(1.5)$1.1 $(3.6)$0.5 

Interest Rates: The Company has entered into four interest rate swaps executed in March 2020 with a combined notional amount of $200 million expiring in April 2025, and one interest rate swap executed in May 2020 with a notional amount of $50 million expiring in May 2025. These interest rate swaps fix the interest rate applicable to certain of the Company's variable-rate debt. The agreements swap one-month SOFR rates for fixed rates. The Company has designated these swaps as cash flow hedges and all changes in fair value of the swaps are recognized in accumulated other comprehensive income (loss).

At September 30, 2024, the fair value of these derivatives designated as cash flow hedges is recorded in the Condensed Consolidated Balance Sheets as Other current assets of $5.2 million and as Accumulated other comprehensive income, net of tax, of $3.8 million. At December 31, 2023, the fair value of these derivatives designated as cash flow hedges is recorded in the Condensed Consolidated Balance Sheets as Other assets of $12.3 million and as Accumulated other comprehensive income, net of tax, of $9.2 million.

Refer to Note 10. Fair Value Of Financial Instruments for a description of how the values of the above financial instruments are determined.

Credit Risk

By their nature, financial instruments involve risk including credit risk for non-performance by counterparties. Financial instruments that potentially subject the Company to credit risk primarily consist of trade receivables and derivative contracts. The Company manages the credit risk on financial instruments by transacting only with financially secure counterparties, requiring credit approvals and establishing credit limits, and monitoring counterparties’ financial condition. The Company's maximum exposure to credit loss in the event of non-performance by the counterparty, for all receivables and derivative contracts as of September 30, 2024, is limited to the amount drawn and outstanding on the financial instrument. Refer to Note 1. Description of Business and Basis of Presentation in Item 8. Financial Statements and Supplementary Data of the Company's most recent Annual Report on Form 10-K, for a description of how allowance for credit loss is determined on financial assets measured at amortized cost, which includes Trade receivables, Contract assets, and non-current receivables.

19

NOTE 12. LEASES

The following table provides the required information regarding operating and sales-type leases for which the Company is lessor.
Three Months Ended
September 30,		Nine Months Ended
September 30,
(In millions)2024202320242023
Fixed payment revenue$17.1 $16.4 $50.3 $48.0 
Variable payment revenue4.0 4.4 21.5 26.2 
Operating lease revenue$21.1 $20.8 $71.8 $74.2 
Sales-type lease revenue$1.8 $1.2 $3.4 $3.2 

Refer to Note 15. Related Party Transactions for details of operating lease agreements with related parties.

NOTE 13. COMMITMENTS AND CONTINGENCIES

In the normal course of business, the Company is at times subject to pending and threatened legal actions, some for which the relief or damages sought may be substantial. Although the Company is not able to predict the outcome of such actions, after reviewing all pending and threatened actions with counsel and based on information currently available, management believes that the outcome of such actions, individually or in the aggregate, will not have a material adverse effect on the Company's results of operations or financial position. However, it is possible that the ultimate resolution of such matters, if unfavorable, may be material to its results of operations in a particular future period as the time and amount of any resolution of such actions and its relationship to the future results of operations are not currently known.

Liabilities are established for pending legal claims only when losses associated with the claims are judged to be probable, and the loss can be reasonably estimated. In many lawsuits and arbitration, it is not considered probable that a liability has been incurred or not possible to estimate the ultimate or minimum amount of that liability until the case is close to resolution, in which case no liability would be recognized until that time.

Guarantees and Product Warranties

In the ordinary course of business with customers, vendors and others, the Company issues standby letters of credit, performance bonds, surety bonds and other guarantees. These financial instruments, which totaled $33.4 million at September 30, 2024, represent guarantees of future performance. The Company has also provided approximately $7.0 million of bank guarantees and letters of credit to secure a portion of its existing financial obligations. The majority of these financial instruments expire within one year and are expected to be replaced through the issuance of new or the extension of existing letters of credit and surety bonds.

In some instances, the Company guarantees its customers’ financing arrangements. The Company is responsible for payment of any unpaid amounts, but will receive indemnification from third parties for eighty-five percent of the contract values. In addition, the Company generally retains recourse to the equipment sold. As of September 30, 2024, the gross value of such arrangements was $1.9 million, of which the Company's net exposure under such guarantees was $0.3 million.

20

The Company provides warranties of various lengths and terms to certain customers based on standard terms and conditions and negotiated agreements. The Company provides for the estimated cost of warranties at the time revenue is recognized for products where reliable, historical experience of warranty claims and costs exist. The Company also provides a warranty liability when additional specific obligations are identified. The warranty obligation reflected in Other current liabilities in the Condensed Consolidated Balance Sheets is based on historical experience by product and considers failure rates and the related costs in correcting a product failure. Warranty cost and accrual information were as follows:
Three Months Ended
September 30,		Nine Months Ended
September 30,
(In millions)2024202320242023
Balance at beginning of period$10.6 $9.3 $9.9 $10.8 
Expense for new warranties3.2 0.3 7.7 8.0 
Adjustments to existing accruals(0.2)0.2 (0.4)0.1 
Claims paid(1.5)(0.2)(4.9)(9.4)
Translation0.3 (0.4)0.1 (0.3)
Balance at end of period$12.4 $9.2 $12.4 $9.2 

NOTE 14. RESTRUCTURING

Restructuring charges primarily consist of employee separation benefits under existing severance programs, foreign statutory termination benefits, certain one-time termination benefits, contract termination costs, asset impairment charges and other costs that are associated with restructuring actions. Certain restructuring charges are accrued prior to payments made in accordance with applicable guidance. For such charges, the amounts are determined based on estimates prepared at the time the restructuring actions were approved by management. Inventory write offs due to restructuring are reported in Cost of products and all other restructuring charges are reported as Restructuring expenses in the Statements of Income.

In the third quarter of 2022, the Company implemented a restructuring plan (the "2022/2023 restructuring plan") to optimize the overall cost structure for the Company on a global basis. The initiatives under this plan included streamlining operations and enhancing our general and administrative infrastructure. The Company recognized restructuring charges of $17.9 million, net of a cumulative release of the related liability of $7.5 million. The 2022/2023 restructuring plan was completed as of March 31, 2024.

The following table details the cumulative restructuring charges reported in operating income for the 2022/2023 restructuring plan since the implementation of this plan:  
Cumulative Amount
During the Quarter Ended
Cumulative Amount
(In millions)Balance as of December 31, 2023March 31, 2024June 30, 2024September 30, 2024Balance as of September 30, 2024
2022/2023 restructuring plan
Severance and related expense$12.7 $0.7 $0.1 $(0.2)$13.3 
Other4.1 0.4 0.1 — 4.6 
Total restructuring charges, net$16.8 $1.1 $0.2 $(0.2)$17.9 

21

Restructuring charges, net of release of related liability, are reported in Restructuring expense within the Condensed Consolidated Statements of Income. Liability balances for restructuring activities are included in Other current liabilities in the accompanying Condensed Consolidated Balance Sheets. The table below details the activities in 2024:
Impact to Earnings
(In millions)Balance as of December 31, 2023Charged to EarningsReleasesCash PaymentsBalance as of September 30, 2024
2022/2023 restructuring plan
Severance and related expense$4.3 $1.6 $(1.0)$(3.6)$1.3 
Other3.7 0.5 — (4.2)— 
Total$8.0 $2.1 $(1.0)$(7.8)$1.3 

The Company released $1.0 million of the liability during the nine months ended September 30, 2024, which it no longer expects to pay in connection with the restructuring plans due to actual severance payments differing from the original estimates and natural attrition of employees.

NOTE 15. RELATED PARTY TRANSACTIONS

The Company is a party to lease agreements to lease manufacturing facilities from entities owned by certain of the Company's employees who were former owners or employees of acquired businesses. As of September 30, 2024, the operating lease right-of-use asset and the lease liability related to these agreements was $3.0 million and $3.2 million, respectively. As of December 31, 2023, the operating lease right-of-use asset and the lease liability related to these agreements was $3.5 million and $3.7 million, respectively.

NOTE 16. SUBSEQUENT EVENTS

During October 2024, the Company successfully secured commitments for a deal-contingent financing structure, consisting of a 5-year, amended and restated $1.8 billion revolving credit facility and a 7-year, $900 million Senior Secured Term Loan B (the "Term Loan B"). This is consistent with the Company's plan to establish a long-term financing structure. Upon the Marel Transaction closing, the Company will terminate the €1.9 billion Bridge Credit Agreement.

The revolving credit facility will retain the same pricing grid as the Company's existing revolving credit facility. The Term Loan B will have secured pricing of SOFR plus 225 basis points. This pricing structure will step down to SOFR plus