10-Q 1 osk-20240331.htm 10-Q 10-Q
--12-310000775158falseQ1http://fasb.org/us-gaap/2023#OtherComprehensiveIncomeLossPensionAndOtherPostretirementBenefitPlansAdjustmentNetOfTaxhttp://fasb.org/us-gaap/2023#OtherComprehensiveIncomeLossPensionAndOtherPostretirementBenefitPlansAdjustmentNetOfTaxhttp://fasb.org/us-gaap/2023#OtherComprehensiveIncomeLossPensionAndOtherPostretirementBenefitPlansAdjustmentNetOfTaxhttp://fasb.org/us-gaap/2023#OtherComprehensiveIncomeLossPensionAndOtherPostretirementBenefitPlansAdjustmentNetOfTaxhttp://fasb.org/us-gaap/2023#OtherComprehensiveIncomeLossPensionAndOtherPostretirementBenefitPlansAdjustmentNetOfTaxhttp://fasb.org/us-gaap/2023#OtherComprehensiveIncomeLossPensionAndOtherPostretirementBenefitPlansAdjustmentNetOfTaxhttp://fasb.org/us-gaap/2023#OtherComprehensiveIncomeLossPensionAndOtherPostretirementBenefitPlansAdjustmentNetOfTaxhttp://fasb.org/us-gaap/2023#OtherComprehensiveIncomeLossPensionAndOtherPostretirementBenefitPlansAdjustmentNetOfTaxhttp://fasb.org/us-gaap/2023#OtherComprehensiveIncomeLossPensionAndOtherPostretirementBenefitPlansAdjustmentNetOfTaxhttp://fasb.org/us-gaap/2023#OtherComprehensiveIncomeLossPensionAndOtherPostretirementBenefitPlansAdjustmentNetOfTaxhttp://fasb.org/us-gaap/2023#OtherComprehensiveIncomeLossPensionAndOtherPostretirementBenefitPlansAdjustmentNetOfTaxhttp://fasb.org/us-gaap/2023#OtherComprehensiveIncomeLossPensionAndOtherPostretirementBenefitPlansAdjustmentNetOfTaxfive years0000775158us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2024-03-310000775158us-gaap:DistributionRightsMember2024-03-310000775158osk:PerformanceAndSpecialtyBondsMember2024-03-310000775158us-gaap:IntersegmentEliminationMemberosk:AccessMember2023-01-012023-03-310000775158osk:EliminationsMemberus-gaap:IntersegmentEliminationMember2023-01-012023-03-310000775158us-gaap:RetainedEarningsMember2024-03-310000775158us-gaap:OperatingSegmentsMemberosk:DefenseMember2024-01-012024-03-310000775158us-gaap:OperatingSegmentsMemberosk:VocationalSegmentMembersrt:NorthAmericaMember2024-01-012024-03-310000775158osk:HinowaSPAMember2023-01-310000775158osk:AnticipatedContractsCostsMember2024-03-310000775158osk:IndirectGuaranteeOfDeferredPaymentAndLeasePaymentAgreementsMemberosk:NonContingentPortionMember2023-12-310000775158us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2024-01-012024-03-310000775158us-gaap:OperatingSegmentsMemberosk:TelehandlersMemberosk:AccessMember2023-01-012023-03-3100007751582022-05-030000775158us-gaap:IntersegmentEliminationMemberus-gaap:EMEAMember2024-01-012024-03-310000775158osk:TradeAndOtherReceivableMember2022-12-310000775158osk:EngineeringCostsMember2024-03-310000775158us-gaap:BuildingMember2024-03-310000775158us-gaap:RevolvingCreditFacilityMember2022-03-230000775158osk:ThreePointOneZeroZeroSeniorNotesDueMarch2030Member2020-02-012020-02-290000775158osk:TelehandlersMemberus-gaap:IntersegmentEliminationMemberosk:AccessMember2024-01-012024-03-310000775158osk:ResidualValueGuaranteeMember2024-03-310000775158osk:JbtAerotechMember2023-01-012023-03-310000775158us-gaap:OperatingSegmentsMemberosk:DefenseMemberus-gaap:EMEAMember2023-01-012023-03-310000775158us-gaap:TransferredAtPointInTimeMemberus-gaap:IntersegmentEliminationMember2024-01-012024-03-310000775158us-gaap:TransferredOverTimeMemberus-gaap:IntersegmentEliminationMember2024-01-012024-03-310000775158osk:TradeAndOtherReceivableMember2023-01-012023-03-310000775158us-gaap:OperatingSegmentsMemberus-gaap:TransferredOverTimeMemberosk:AccessMember2024-01-012024-03-310000775158us-gaap:OtherIntangibleAssetsMember2023-12-310000775158osk:VocationalSegmentMember2023-01-012023-03-310000775158us-gaap:CorporateNonSegmentMember2023-01-012023-03-310000775158osk:ThreePointOneZeroZeroSeniorNotesDueMarch2030Member2020-02-290000775158osk:IndirectGuaranteeOfDeferredPaymentAndLeasePaymentAgreementsMemberosk:NonContingentPortionMember2024-01-012024-03-310000775158osk:JbtAerotechMember2023-08-010000775158osk:UncommittedLineOfCreditMember2024-03-310000775158us-gaap:CommonStockMember2023-03-310000775158us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-310000775158us-gaap:OperatingSegmentsMemberosk:DefenseMemberosk:RestOfWorldMember2023-01-012023-03-310000775158us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-310000775158osk:TelehandlersMemberosk:AccessMember2023-01-012023-03-310000775158us-gaap:OperatingSegmentsMemberus-gaap:TransferredAtPointInTimeMemberosk:AccessMember2024-01-012024-03-310000775158osk:CustomerOwnedToolingMember2024-03-310000775158osk:PensionBenefitsMember2024-01-012024-03-310000775158us-gaap:TradeNamesMember2024-03-310000775158us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-310000775158us-gaap:OperatingSegmentsMemberosk:VocationalSegmentMemberus-gaap:TransferredOverTimeMember2024-01-012024-03-310000775158osk:VocationalSegmentMemberosk:RearDischargeConcreteMixersMember2023-01-012023-03-310000775158osk:AnticipatedContractsCostsMember2023-12-310000775158osk:VocationalSegmentMemberosk:OtherVocationalMember2023-01-012023-03-310000775158us-gaap:OperatingSegmentsMemberosk:DefenseMemberus-gaap:EMEAMember2024-01-012024-03-310000775158osk:DefenseMember2024-03-310000775158us-gaap:OperatingSegmentsMemberosk:VocationalSegmentMembersrt:NorthAmericaMember2023-01-012023-03-310000775158osk:RefuseCollectionMemberus-gaap:OperatingSegmentsMemberosk:VocationalSegmentMember2023-01-012023-03-310000775158us-gaap:LandAndLandImprovementsMember2023-12-310000775158osk:PersonalInjuryActionsAndOtherMember2024-03-310000775158osk:AccessMemberosk:OtherAccessEquipmentMember2023-01-012023-03-310000775158osk:IndirectGuaranteeOfDeferredPaymentAndLeasePaymentAgreementsMemberosk:NonContingentPortionMember2023-01-012023-03-310000775158osk:TelehandlersMemberosk:AccessMember2024-01-012024-03-310000775158osk:PensionBenefitsMember2023-01-012023-03-310000775158us-gaap:IntersegmentEliminationMemberosk:AccessMemberosk:OtherAccessEquipmentMember2024-01-012024-03-310000775158osk:VocationalSegmentMemberosk:OtherVocationalMember2024-01-012024-03-310000775158us-gaap:OperatingSegmentsMemberosk:EliminationsMember2024-01-012024-03-310000775158us-gaap:DistributionRightsMember2023-12-310000775158us-gaap:TradeNamesMember2023-12-310000775158osk:SERPPlanMemberus-gaap:FairValueInputsLevel1Member2023-12-310000775158osk:IndirectGuaranteeOfDeferredPaymentAndLeasePaymentAgreementsMemberosk:NonContingentPortionMember2022-12-310000775158us-gaap:AdditionalPaidInCapitalMember2024-03-310000775158osk:RearDischargeConcreteMixersMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2023-01-012023-03-310000775158osk:RefuseCollectionMemberosk:VocationalSegmentMember2023-01-012023-03-310000775158us-gaap:OperatingSegmentsMemberosk:VocationalSegmentMemberosk:FireApparatusMember2024-01-012024-03-310000775158osk:AerialWorksPlatformsMemberosk:AccessMember2023-01-012023-03-310000775158us-gaap:TreasuryStockCommonMember2024-01-012024-03-310000775158osk:RestOfWorldMember2023-01-012023-03-310000775158us-gaap:LineOfCreditMember2024-03-310000775158osk:VocationalSegmentMemberus-gaap:IntersegmentEliminationMemberosk:FireApparatusMember2023-01-012023-03-310000775158us-gaap:FairValueInputsLevel1Memberosk:SERPPlanMember2024-03-310000775158us-gaap:NotesReceivableMember2024-03-310000775158us-gaap:AdditionalPaidInCapitalMember2023-12-310000775158osk:A4600SeniorNotesDueMay2028Member2018-05-012018-05-310000775158osk:A4600SeniorNotesDueMay2028Member2024-01-012024-03-310000775158us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-03-310000775158us-gaap:FairValueInputsLevel1Member2024-03-310000775158us-gaap:OperatingSegmentsMemberosk:DefenseMemberosk:RestOfWorldMember2024-01-012024-03-310000775158us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-310000775158osk:EliminationsMember2024-01-012024-03-310000775158osk:FactorySetupCostsMember2024-03-310000775158us-gaap:OperatingSegmentsMemberosk:DefenseMembersrt:NorthAmericaMember2024-01-012024-03-310000775158us-gaap:FinanceReceivablesMember2023-01-012023-03-310000775158osk:HinowaSPAMember2023-02-282023-02-280000775158osk:TradeAndOtherReceivableMember2023-03-310000775158us-gaap:RevolvingCreditFacilityMemberus-gaap:SubsequentEventMember2024-04-030000775158osk:VocationalSegmentMemberosk:PierceMember2023-01-012023-03-310000775158osk:RearDischargeConcreteMixersMember2023-03-010000775158us-gaap:TransferredOverTimeMember2023-01-012023-03-310000775158us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310000775158us-gaap:OperatingSegmentsMemberus-gaap:EMEAMemberosk:AccessMember2023-01-012023-03-310000775158osk:A460SeniorNotesDueMay2028Member2024-03-310000775158us-gaap:OperatingSegmentsMemberosk:DefenseMemberus-gaap:TransferredOverTimeMember2023-01-012023-03-310000775158osk:SERPPlanMemberus-gaap:FairValueInputsLevel2Member2023-12-310000775158us-gaap:OperatingSegmentsMemberosk:VocationalSegmentMemberus-gaap:EMEAMember2023-01-012023-03-310000775158osk:PersonalInjuryActionsAndOtherMember2023-12-310000775158osk:SERPPlanMember2023-12-3100007751582023-12-310000775158osk:IndirectGuaranteeOfDeferredPaymentAndLeasePaymentAgreementsMemberosk:ContingentPortionMember2024-01-012024-03-310000775158us-gaap:RetainedEarningsMember2023-12-310000775158osk:A460SeniorNotesDueMay2028Member2023-12-310000775158osk:TelehandlersMemberus-gaap:IntersegmentEliminationMemberosk:AccessMember2023-01-012023-03-310000775158us-gaap:CostOfSalesMember2024-01-012024-03-310000775158osk:AerialWorksPlatformsMemberus-gaap:IntersegmentEliminationMemberosk:AccessMember2023-01-012023-03-310000775158osk:IndirectGuaranteeOfDeferredPaymentAndLeasePaymentAgreementsMemberosk:NonContingentPortionMember2023-03-310000775158osk:SERPPlanMemberus-gaap:FairValueInputsLevel2Member2024-03-310000775158us-gaap:CustomerRelationshipsMember2024-03-310000775158us-gaap:OperatingSegmentsMemberosk:AccessMember2024-01-012024-03-310000775158us-gaap:DevelopedTechnologyRightsMember2024-03-310000775158srt:NorthAmericaMemberus-gaap:IntersegmentEliminationMember2024-01-012024-03-310000775158us-gaap:CommonStockMember2022-12-310000775158osk:AccessMember2024-01-012024-03-310000775158osk:VocationalSegmentMember2024-01-012024-03-310000775158us-gaap:OperatingSegmentsMemberosk:DefenseMember2023-01-012023-03-310000775158us-gaap:RevolvingCreditFacilityMember2024-03-310000775158osk:ThreePointOneZeroZeroSeniorNotesDueMarch2030Member2024-03-310000775158srt:MinimumMember2024-01-012024-03-310000775158osk:VocationalSegmentMemberosk:OtherVocationalMemberus-gaap:IntersegmentEliminationMember2023-01-012023-03-310000775158us-gaap:OperatingSegmentsMemberosk:DefenseMemberus-gaap:TransferredAtPointInTimeMember2024-01-012024-03-310000775158osk:A310SeniorNotesDueMarch2030Member2023-12-310000775158us-gaap:OperatingSegmentsMembersrt:NorthAmericaMemberosk:AccessMember2024-01-012024-03-310000775158osk:EquipmentOnOperatingLeaseToOthersMember2024-03-310000775158osk:IndirectGuaranteeOfDeferredPaymentAndLeasePaymentAgreementsMemberosk:NonContingentPortionMember2024-03-310000775158osk:TradeAndOtherReceivableMember2024-01-012024-03-310000775158osk:SecondLineOfCreditMember2024-03-310000775158osk:DefenseMember2024-01-012024-03-310000775158us-gaap:OperatingSegmentsMemberosk:RestOfWorldMemberosk:AccessMember2023-01-012023-03-310000775158us-gaap:RetainedEarningsMember2023-03-310000775158us-gaap:FairValueInputsLevel3Member2024-03-310000775158osk:SERPPlanMemberus-gaap:FairValueInputsLevel3Member2023-12-310000775158osk:CreditAgreementMember2024-03-310000775158us-gaap:IntersegmentEliminationMember2024-01-012024-03-310000775158us-gaap:CommonStockMember2023-01-012023-03-310000775158osk:SnowRemovalBusinessMember2023-07-242023-07-240000775158osk:NonContingentPortionMember2024-01-012024-03-310000775158osk:RestOfWorldMember2024-01-012024-03-310000775158us-gaap:OperatingSegmentsMember2023-01-012023-03-310000775158us-gaap:AdditionalPaidInCapitalMember2024-01-012024-03-310000775158osk:VocationalSegmentMemberosk:FireApparatusMember2024-01-012024-03-310000775158osk:IndirectGuaranteeOfDeferredPaymentAndLeasePaymentAgreementsMemberosk:ContingentPortionMember2023-03-310000775158osk:VocationalSegmentMemberosk:FireApparatusMember2023-01-012023-03-310000775158us-gaap:RevolvingCreditFacilityMember2022-03-232022-03-230000775158us-gaap:OtherIntangibleAssetsMember2024-03-310000775158osk:SnowRemovalBusinessMemberosk:DefenseMember2023-01-012023-03-310000775158us-gaap:OperatingSegmentsMemberosk:RestOfWorldMemberosk:AccessMember2024-01-012024-03-310000775158us-gaap:OperatingSegmentsMemberus-gaap:TransferredOverTimeMemberosk:AccessMember2023-01-012023-03-310000775158us-gaap:OperatingSegmentsMemberosk:DefenseMemberus-gaap:TransferredOverTimeMember2024-01-012024-03-310000775158us-gaap:FinanceReceivablesMember2024-03-310000775158us-gaap:OperatingSegmentsMemberosk:TelehandlersMemberosk:AccessMember2024-01-012024-03-310000775158osk:SnowRemovalBusinessMemberosk:DefenseMember2023-07-012023-09-300000775158us-gaap:OperatingSegmentsMemberosk:VocationalSegmentMemberus-gaap:TransferredAtPointInTimeMember2023-01-012023-03-3100007751582022-12-310000775158us-gaap:FairValueInputsLevel2Member2023-12-310000775158osk:VocationalSegmentMember2023-12-310000775158osk:IndirectGuaranteeOfDeferredPaymentAndLeasePaymentAgreementsMember2024-03-310000775158us-gaap:OperatingSegmentsMemberosk:VocationalSegmentMemberus-gaap:EMEAMember2024-01-012024-03-310000775158us-gaap:CommonStockMember2024-01-012024-03-310000775158us-gaap:TransferredAtPointInTimeMember2023-01-012023-03-310000775158srt:NorthAmericaMemberus-gaap:IntersegmentEliminationMember2023-01-012023-03-310000775158us-gaap:OperatingSegmentsMemberosk:EliminationsMember2023-01-012023-03-310000775158osk:VocationalSegmentMemberus-gaap:IntersegmentEliminationMember2024-01-012024-03-3100007751582023-03-310000775158us-gaap:TreasuryStockCommonMember2023-03-310000775158osk:CreditAgreementMemberosk:DebtInstrumentVariableRateBaseFederalMember2024-01-012024-03-310000775158us-gaap:CustomerRelationshipsMember2023-12-310000775158srt:NorthAmericaMember2023-01-012023-03-310000775158osk:EliminationsMemberus-gaap:IntersegmentEliminationMember2024-01-012024-03-310000775158us-gaap:OperatingSegmentsMemberosk:AerialWorksPlatformsMemberosk:AccessMember2024-01-012024-03-310000775158us-gaap:FinanceReceivablesMember2024-01-012024-03-310000775158us-gaap:IntersegmentEliminationMemberosk:AccessMember2024-01-012024-03-310000775158osk:AccessMemberosk:OtherAccessEquipmentMember2024-01-012024-03-310000775158osk:A310SeniorNotesDueMarch2030Member2024-01-012024-03-310000775158us-gaap:RetainedEarningsMember2024-01-012024-03-310000775158us-gaap:OperatingSegmentsMemberosk:AccessMember2023-01-012023-03-310000775158us-gaap:MachineryAndEquipmentMember2024-03-310000775158srt:MaximumMemberosk:EquipmentOnOperatingLeaseToOthersMember2024-03-310000775158us-gaap:OperatingSegmentsMemberosk:AccessMemberosk:OtherAccessEquipmentMember2024-01-012024-03-310000775158us-gaap:OperatingSegmentsMemberus-gaap:TransferredAtPointInTimeMemberosk:AccessMember2023-01-012023-03-310000775158osk:EliminationsMember2023-01-012023-03-310000775158osk:A4600SeniorNotesDueMay2028Member2018-05-310000775158osk:SERPPlanMember2024-03-310000775158osk:A310SeniorNotesDueMarch2030Member2024-03-310000775158osk:AccessMember2023-01-012023-03-310000775158us-gaap:LandAndLandImprovementsMember2024-03-310000775158osk:A4600SeniorNotesDueMay2028Member2023-12-310000775158us-gaap:TransferredOverTimeMember2024-01-012024-03-310000775158us-gaap:TreasuryStockCommonMember2022-12-310000775158osk:A310SeniorNotesDueMarch2030Member2023-01-012023-12-310000775158us-gaap:OperatingSegmentsMemberosk:VocationalSegmentMember2024-01-012024-03-310000775158osk:VocationalSegmentMemberus-gaap:IntersegmentEliminationMember2023-01-012023-03-310000775158osk:VocationalSegmentMemberosk:OtherVocationalMemberus-gaap:IntersegmentEliminationMember2024-01-012024-03-310000775158us-gaap:TransferredAtPointInTimeMember2024-01-012024-03-310000775158us-gaap:OperatingSegmentsMemberosk:VocationalSegmentMemberus-gaap:TransferredOverTimeMember2023-01-012023-03-310000775158osk:ContingentPortionMember2024-01-012024-03-310000775158us-gaap:OperatingSegmentsMemberosk:VocationalSegmentMemberosk:OtherVocationalMember2023-01-012023-03-310000775158us-gaap:AdditionalPaidInCapitalMember2022-12-310000775158us-gaap:LetterOfCreditMember2024-01-012024-03-310000775158osk:SERPPlanMemberus-gaap:FairValueInputsLevel3Member2024-03-310000775158us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2023-12-310000775158us-gaap:FairValueInputsLevel1Member2023-12-310000775158osk:CreditAgreementMembersrt:MaximumMember2024-01-012024-03-310000775158us-gaap:ConstructionInProgressMember2023-12-310000775158us-gaap:OperatingSegmentsMemberosk:VocationalSegmentMemberus-gaap:TransferredAtPointInTimeMember2024-01-012024-03-310000775158us-gaap:EMEAMember2024-01-012024-03-310000775158us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2023-01-012023-03-310000775158osk:AccessMember2023-12-310000775158osk:IndirectGuaranteeOfDeferredPaymentAndLeasePaymentAgreementsMemberosk:ContingentPortionMember2023-01-012023-03-310000775158us-gaap:OperatingSegmentsMemberosk:VocationalSegmentMemberosk:OtherVocationalMember2024-01-012024-03-310000775158us-gaap:IntersegmentEliminationMemberosk:AccessMemberosk:OtherAccessEquipmentMember2023-01-012023-03-310000775158osk:IndirectGuaranteeOfDeferredPaymentAndLeasePaymentAgreementsMemberosk:ContingentPortionMember2023-12-310000775158osk:EngineeringCostsMember2023-12-310000775158us-gaap:NotesReceivableMember2023-12-310000775158osk:CreditAgreementMembersrt:MinimumMember2024-01-012024-03-310000775158us-gaap:IntersegmentEliminationMemberus-gaap:EMEAMember2023-01-012023-03-310000775158us-gaap:TreasuryStockCommonMember2023-12-310000775158us-gaap:OperatingSegmentsMemberosk:AccessMemberus-gaap:EMEAMember2024-01-012024-03-310000775158osk:A4600SeniorNotesDueMay2028Member2023-01-012023-12-310000775158osk:PersonalInjuryActionsAndOtherMember2024-01-012024-03-310000775158us-gaap:OperatingSegmentsMemberosk:VocationalSegmentMemberosk:RestOfWorldMember2023-01-012023-03-310000775158osk:DebtInstrumentVariableRateBaseTermSOFRMemberosk:CreditAgreementMember2024-01-012024-03-310000775158osk:SecondUncommittedLineOfCreditMember2024-03-310000775158osk:CustomerOwnedToolingMember2023-12-310000775158osk:AccountingStandardsUpdate202309Member2024-01-012024-03-310000775158osk:RefuseCollectionMemberosk:VocationalSegmentMember2024-01-012024-03-310000775158osk:OtherLongTermDebtMember2024-03-310000775158us-gaap:IntersegmentEliminationMemberosk:RestOfWorldMember2023-01-012023-03-310000775158us-gaap:TransferredAtPointInTimeMemberus-gaap:IntersegmentEliminationMember2023-01-012023-03-3100007751582024-04-180000775158osk:ContractFulfilmentOrCustomerOwnedToolingCostsMember2023-01-012023-03-310000775158osk:PerformanceAndSpecialtyBondsMember2023-12-310000775158us-gaap:CommonStockMember2024-03-310000775158us-gaap:DevelopedTechnologyRightsMember2023-12-310000775158us-gaap:IntersegmentEliminationMember2023-01-012023-03-310000775158osk:ContractFulfilmentOrCustomerOwnedToolingCostsMember2024-01-012024-03-310000775158osk:JbtAerotechMember2023-08-012023-08-010000775158osk:HinowaSPAMember2024-03-310000775158us-gaap:CorporateNonSegmentMember2024-01-012024-03-310000775158us-gaap:RetainedEarningsMember2022-12-310000775158osk:RefuseCollectionMemberosk:VocationalSegmentMemberus-gaap:IntersegmentEliminationMember2023-01-012023-03-310000775158us-gaap:FairValueInputsLevel2Member2024-03-310000775158us-gaap:TransferredOverTimeMemberus-gaap:IntersegmentEliminationMember2023-01-012023-03-310000775158osk:HinowaSPAMember2023-01-312023-01-310000775158osk:EquipmentOnOperatingLeaseToOthersMembersrt:MinimumMember2024-03-310000775158osk:A4600SeniorNotesDueMay2028Member2024-03-310000775158us-gaap:OperatingSegmentsMemberosk:AerialWorksPlatformsMemberosk:AccessMember2023-01-012023-03-3100007751582024-01-012024-03-310000775158us-gaap:EMEAMember2023-01-012023-03-310000775158osk:RefuseCollectionMemberus-gaap:OperatingSegmentsMemberosk:VocationalSegmentMember2024-01-012024-03-3100007751582024-03-310000775158us-gaap:OperatingSegmentsMemberosk:VocationalSegmentMemberosk:FireApparatusMember2023-01-012023-03-310000775158srt:MaximumMember2024-01-012024-03-310000775158osk:EquipmentOnOperatingLeaseToOthersMember2023-12-310000775158osk:ThreePointOneZeroZeroSeniorNotesDueMarch2030Member2023-12-310000775158us-gaap:MachineryAndEquipmentMember2023-12-310000775158osk:IndirectGuaranteeOfDeferredPaymentAndLeasePaymentAgreementsMemberosk:ContingentPortionMember2024-03-310000775158us-gaap:OperatingSegmentsMember2024-01-012024-03-310000775158us-gaap:OperatingSegmentsMemberosk:DefenseMemberus-gaap:TransferredAtPointInTimeMember2023-01-012023-03-310000775158us-gaap:ConstructionInProgressMember2024-03-310000775158osk:VocationalSegmentMemberus-gaap:IntersegmentEliminationMemberosk:FireApparatusMember2024-01-012024-03-310000775158osk:TradeAndOtherReceivableMember2024-03-310000775158us-gaap:CommonStockMember2023-12-310000775158us-gaap:TreasuryStockCommonMember2024-03-310000775158us-gaap:AdditionalPaidInCapitalMember2023-03-310000775158osk:FactorySetupCostsMember2023-12-310000775158us-gaap:FairValueInputsLevel3Member2023-12-310000775158osk:RefuseCollectionMemberosk:VocationalSegmentMemberus-gaap:IntersegmentEliminationMember2024-01-012024-03-310000775158us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-310000775158osk:DefenseMemberus-gaap:IntersegmentEliminationMember2023-01-012023-03-310000775158osk:DefenseMember2023-12-310000775158us-gaap:FinanceReceivablesMember2022-12-310000775158osk:OtherLongTermDebtMember2023-12-310000775158us-gaap:FinanceReceivablesMember2023-03-310000775158osk:AerialWorksPlatformsMemberosk:AccessMember2024-01-012024-03-310000775158us-gaap:OperatingSegmentsMemberosk:VocationalSegmentMemberosk:RestOfWorldMember2024-01-012024-03-310000775158us-gaap:FinanceReceivablesMember2023-12-310000775158us-gaap:TreasuryStockCommonMember2023-01-012023-03-310000775158osk:DefenseMemberus-gaap:IntersegmentEliminationMember2024-01-012024-03-310000775158us-gaap:OperatingSegmentsMemberosk:AccessMemberosk:OtherAccessEquipmentMember2023-01-012023-03-310000775158osk:VocationalSegmentMemberosk:PierceMember2024-01-012024-03-3100007751582023-01-012023-03-310000775158osk:AccessMember2024-03-310000775158srt:NorthAmericaMember2024-01-012024-03-310000775158osk:CreditAgreementMember2024-01-012024-03-310000775158osk:JbtAerotechMember2024-01-012024-03-310000775158us-gaap:RetainedEarningsMember2023-01-012023-03-310000775158osk:IndirectGuaranteeOfDeferredPaymentAndLeasePaymentAgreementsMemberosk:ContingentPortionMember2022-12-310000775158us-gaap:IntersegmentEliminationMemberosk:RestOfWorldMember2024-01-012024-03-310000775158us-gaap:OperatingSegmentsMemberosk:DefenseMembersrt:NorthAmericaMember2023-01-012023-03-310000775158osk:TradeAndOtherReceivableMember2023-12-310000775158osk:AerialWorksPlatformsMemberus-gaap:IntersegmentEliminationMemberosk:AccessMember2024-01-012024-03-310000775158us-gaap:OperatingSegmentsMembersrt:NorthAmericaMemberosk:AccessMember2023-01-012023-03-310000775158osk:VocationalSegmentMember2024-03-310000775158us-gaap:BuildingMember2023-12-310000775158us-gaap:OperatingSegmentsMemberosk:VocationalSegmentMember2023-01-012023-03-310000775158osk:DefenseMember2023-01-012023-03-31iso4217:EURxbrli:pureiso4217:USDxbrli:sharesxbrli:sharesiso4217:CNYosk:Segmentiso4217:USD

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024

or

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number: 1-31371

Oshkosh Corporation

(Exact name of registrant as specified in its charter)

Wisconsin

 

39-0520270

(State or other jurisdiction
of incorporation or organization)

 

(I.R.S. Employer
Identification No.)

 

1917 Four Wheel Drive

Oshkosh, Wisconsin

 

54902

(Address of principal executive offices)

 

(Zip Code)

(920) 502-3400

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

 

Trading
Symbol(s)

 

Name of each exchange on which registered

Common Stock $0.01 par value

 

OSK

 

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ 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 (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

 

Accelerated filer

Non-accelerated filer

 

Smaller reporting company

 

 

 

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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

As of April 18, 2024, 65,401,118 shares of the registrant’s Common Stock were outstanding.

 


OSHKOSH CORPORATION

FORM 10-Q INDEX

 

 

 

Page

 

PART I - FINANCIAL INFORMATION

 

 

 

 

 

 

 

ITEM 1.

 

FINANCIAL STATEMENTS (UNAUDITED)

 

3

 

 

 

 

Condensed Consolidated Statements of Income for the Three Months Ended March 31, 2024 and 2023

 

3

 

 

 

 

Condensed Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2024 and 2023

 

4

 

 

 

 

Condensed Consolidated Balance Sheets at March 31, 2024 and December 31, 2023

 

5

 

 

 

 

Condensed Consolidated Statements of Shareholders’ Equity for the Three Months Ended March 31, 2024 and 2023

 

6

 

 

 

 

Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023

 

7

 

 

 

 

Notes to Condensed Consolidated Financial Statements

 

8

 

 

 

ITEM 2.

 

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

26

 

 

 

ITEM 3.

 

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

34

 

 

 

ITEM 4.

 

CONTROLS AND PROCEDURES

 

34

 

 

 

 

 

 

PART II - OTHER INFORMATION

 

 

 

 

 

 

 

ITEM 1.

 

LEGAL PROCEEDINGS

 

36

 

 

 

ITEM 1A.

 

RISK FACTORS

 

36

 

 

 

ITEM 2.

 

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

36

 

 

 

ITEM 4.

 

MINE SAFETY DISCLOSURES

 

36

 

 

 

 

 

ITEM 5.

 

OTHER INFORMATION

 

36

 

 

 

 

 

ITEM 6.

 

EXHIBITS

 

37

 

 

 

SIGNATURES

 

38

 

 


PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

OSHKOSH CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Dollars in millions, except per share amounts; unaudited)

 

 

 

Three Months Ended
March 31,

 

 

 

2024

 

 

2023

 

Net sales

 

$

2,543.8

 

 

$

2,268.1

 

Cost of sales

 

 

2,073.8

 

 

 

1,934.3

 

Gross income

 

 

470.0

 

 

 

333.8

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

Selling, general and administrative

 

 

196.8

 

 

 

199.1

 

Amortization of purchased intangibles

 

 

13.5

 

 

 

3.9

 

Total operating expenses

 

 

210.3

 

 

 

203.0

 

Operating income

 

 

259.7

 

 

 

130.8

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

Interest expense

 

 

(22.4

)

 

 

(13.4

)

Interest income

 

 

1.6

 

 

 

6.2

 

Miscellaneous, net

 

 

(2.0

)

 

 

5.8

 

Income before income taxes and losses of unconsolidated affiliates

 

 

236.9

 

 

 

129.4

 

Provision for income taxes

 

 

54.7

 

 

 

34.2

 

Income before losses of unconsolidated affiliates

 

 

182.2

 

 

 

95.2

 

Losses of unconsolidated affiliates

 

 

(2.8

)

 

 

(6.7

)

Net income

 

$

179.4

 

 

$

88.5

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

Basic

 

$

2.73

 

 

$

1.35

 

Diluted

 

 

2.71

 

 

 

1.34

 

 

 

 

 

 

 

Cash dividends declared per share on Common Stock

 

$

0.46

 

 

$

0.41

 

 

The accompanying notes are an integral part of these financial statements.

3


OSHKOSH CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Dollars in millions; unaudited)

 

 

 

Three Months Ended
March 31,

 

 

 

2024

 

 

2023

 

Net income

 

$

179.4

 

 

$

88.5

 

Other comprehensive income (loss), net of tax:

 

 

 

 

 

 

Employee pension and postretirement benefits

 

 

(0.4

)

 

 

(0.4

)

Currency translation adjustments

 

 

(17.5

)

 

 

11.4

 

Change in fair value of derivative instruments

 

 

0.3

 

 

 

(2.0

)

Total other comprehensive income (loss), net of tax

 

 

(17.6

)

 

 

9.0

 

Comprehensive income

 

$

161.8

 

 

$

97.5

 

 

The accompanying notes are an integral part of these financial statements.

4


OSHKOSH CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in millions, except share and per share amounts; unaudited)

 

 

 

March 31,
2024

 

 

December 31,
2023

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

69.9

 

 

$

125.4

 

Receivables, net

 

 

1,533.0

 

 

 

1,316.4

 

Unbilled receivables, net

 

 

792.1

 

 

 

771.6

 

Inventories

 

 

2,208.4

 

 

 

2,131.6

 

Income taxes receivable

 

 

36.4

 

 

 

42.2

 

Other current assets

 

 

91.7

 

 

 

93.6

 

Total current assets

 

 

4,731.5

 

 

 

4,480.8

 

Property, plant and equipment, net

 

 

1,102.9

 

 

 

1,069.5

 

Goodwill

 

 

1,409.4

 

 

 

1,416.4

 

Purchased intangible assets, net

 

 

812.8

 

 

 

830.2

 

Deferred income taxes

 

 

261.1

 

 

 

262.0

 

Deferred contract costs

 

 

793.4

 

 

 

710.7

 

Other non-current assets

 

 

359.9

 

 

 

359.6

 

Total assets

 

$

9,471.0

 

 

$

9,129.2

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Revolving credit facilities

 

$

641.0

 

 

$

175.0

 

Accounts payable

 

 

1,059.3

 

 

 

1,214.5

 

Customer advances

 

 

703.8

 

 

 

706.9

 

Payroll-related obligations

 

 

158.4

 

 

 

242.5

 

Income taxes payable

 

 

328.7

 

 

 

308.0

 

Other current liabilities

 

 

428.3

 

 

 

442.7

 

Total current liabilities

 

 

3,319.5

 

 

 

3,089.6

 

Long-term debt, less current maturities

 

 

598.9

 

 

 

597.5

 

Non-current customer advances

 

 

1,181.5

 

 

 

1,190.7

 

Deferred income taxes

 

 

25.0

 

 

 

26.8

 

Other non-current liabilities

 

 

520.1

 

 

519.3

 

Commitments and contingencies

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

 

Preferred Stock ($0.01 par value; 2,000,000 shares authorized;
none issued and outstanding)

 

 

 

 

 

 

Common Stock ($0.01 par value; 300,000,000 shares authorized; 75,101,465 shares issued)

 

 

0.7

 

 

 

0.7

 

Additional paid-in capital

 

 

821.7

 

 

 

823.0

 

Retained earnings

 

 

3,955.1

 

 

 

3,805.8

 

Accumulated other comprehensive loss

 

 

(89.6

)

 

 

(72.0

)

Common Stock in treasury, at cost (9,625,476 and 9,627,658 shares, respectively)

 

 

(861.9

)

 

 

(852.2

)

Total shareholders’ equity

 

 

3,826.0

 

 

 

3,705.3

 

Total liabilities and shareholders’ equity

 

$

9,471.0

 

 

$

9,129.2

 

 

The accompanying notes are an integral part of these financial statements.

5


OSHKOSH CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERSEQUITY

(Dollars in millions, except per share amounts; unaudited)

 

 

 

Three Months Ended March 31, 2024

 

 

 

Common
Stock

 

 

Additional
Paid-In
Capital

 

 

Retained
Earnings

 

 

Accumulated Other
Comprehensive
Income (Loss)

 

 

Common
Stock in
Treasury
at Cost

 

 

Total

 

Balance at December 31, 2023

 

$

0.7

 

 

$

823.0

 

 

$

3,805.8

 

 

$

(72.0

)

 

$

(852.2

)

 

$

3,705.3

 

Net income

 

 

 

 

 

 

 

 

179.4

 

 

 

 

 

 

 

 

 

179.4

 

Employee pension and postretirement benefits, net of tax of $0.1

 

 

 

 

 

 

 

 

 

 

 

(0.4

)

 

 

 

 

 

(0.4

)

Currency translation adjustments

 

 

 

 

 

 

 

 

 

 

 

(17.5

)

 

 

 

 

 

(17.5

)

Derivative instruments, net of tax

 

 

 

 

 

 

 

 

 

 

 

0.3

 

 

 

 

 

 

0.3

 

Cash dividends ($0.46 per share)

 

 

 

 

 

 

 

 

(30.1

)

 

 

 

 

 

 

 

 

(30.1

)

Repurchases of Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(15.1

)

 

 

(15.1

)

Exercise of stock options

 

 

 

 

 

0.7

 

 

 

 

 

 

 

 

 

2.8

 

 

 

3.5

 

Stock-based compensation expense

 

 

 

 

 

8.7

 

 

 

 

 

 

 

 

 

 

 

 

8.7

 

Payment of stock-based restricted and performance shares

 

 

 

 

 

(10.4

)

 

 

 

 

 

 

 

 

10.4

 

 

 

 

Shares tendered for taxes on stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8.2

)

 

 

(8.2

)

Other

 

 

 

 

 

(0.3

)

 

 

 

 

 

 

 

 

0.4

 

 

 

0.1

 

Balance at March 31, 2024

 

$

0.7

 

 

$

821.7

 

 

$

3,955.1

 

 

$

(89.6

)

 

$

(861.9

)

 

$

3,826.0

 

 

 

 

Three Months Ended March 31, 2023

 

 

 

Common
Stock

 

 

Additional
Paid-In
Capital

 

 

Retained
Earnings

 

 

Accumulated Other
Comprehensive
Income (Loss)

 

 

Common
Stock in
Treasury
at Cost

 

 

Total

 

Balance at December 31, 2022

 

$

0.7

 

 

$

806.0

 

 

$

3,315.0

 

 

$

(92.3

)

 

$

(843.7

)

 

$

3,185.7

 

Net income

 

 

 

 

 

 

 

 

88.5

 

 

 

 

 

 

 

 

 

88.5

 

Employee pension and postretirement benefits, net of tax of $0.1

 

 

 

 

 

 

 

 

 

 

 

(0.4

)

 

 

 

 

 

(0.4

)

Currency translation adjustments

 

 

 

 

 

 

 

 

 

 

 

11.4

 

 

 

 

 

 

11.4

 

Derivative instruments, net of tax

 

 

 

 

 

 

 

 

 

 

 

(2.0

)

 

 

 

 

 

(2.0

)

Cash dividends ($0.41 per share)

 

 

 

 

 

 

 

 

(26.8

)

 

 

 

 

 

 

 

 

(26.8

)

Repurchases of Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(15.2

)

 

 

(15.2

)

Exercise of stock options

 

 

 

 

 

0.5

 

 

 

 

 

 

 

 

 

2.0

 

 

 

2.5

 

Stock-based compensation expense

 

 

 

 

 

6.8

 

 

 

 

 

 

 

 

 

 

 

 

6.8

 

Payment of stock-based restricted and performance shares

 

 

 

 

 

(4.7

)

 

 

 

 

 

 

 

 

4.7

 

 

 

 

Shares tendered for taxes on stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3.4

)

 

 

(3.4

)

Other

 

 

 

 

 

(0.6

)

 

 

 

 

 

 

 

 

0.7

 

 

 

0.1

 

Balance at March 31, 2023

 

$

0.7

 

 

$

808.0

 

 

$

3,376.7

 

 

$

(83.3

)

 

$

(854.9

)

 

$

3,247.2

 

 

The accompanying notes are an integral part of these financial statements.

6


OSHKOSH CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in millions; unaudited)

 

 

 

Three Months Ended
March 31,

 

 

 

2024

 

 

2023

 

Operating activities:

 

 

 

 

 

 

Net income

 

$

179.4

 

 

$

88.5

 

Depreciation and amortization

 

 

46.6

 

 

 

30.5

 

Stock-based incentive compensation

 

 

8.7

 

 

 

6.8

 

Loss on sale of business, net of tax

 

 

 

 

 

11.0

 

Deferred income taxes

 

 

0.4

 

 

 

(26.3

)

Other non-cash adjustments

 

 

5.8

 

 

 

6.0

 

Changes in operating assets and liabilities

 

 

(596.7

)

 

 

(36.7

)

Net cash provided by (used in) operating activities

 

 

(355.8

)

 

 

79.8

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

 

Additions to property, plant and equipment

 

 

(100.1

)

 

 

(111.5

)

Acquisition of business, net of cash acquired

 

 

(7.8

)

 

 

(187.9

)

Proceeds from sale of business, net of cash sold

 

 

 

 

 

23.1

 

Other investing activities

 

 

(3.3

)

 

 

(0.8

)

Net cash used in investing activities

 

 

(111.2

)

 

 

(277.1

)

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

 

Proceeds from revolving credit facilities

 

 

1,133.0

 

 

 

 

Repayments of revolving credit facilities

 

 

(667.0

)

 

 

 

Repayments of debt

 

 

 

 

 

(25.0

)

Dividends paid

 

 

(30.1

)

 

 

(26.8

)

Repurchases of Common Stock

 

 

(15.1

)

 

 

(15.2

)

Other financing activities

 

 

(8.3

)

 

 

(4.1

)

Net cash provided by (used in) financing activities

 

 

412.5

 

 

 

(71.1

)

Effect of exchange rate changes on cash and cash equivalents

 

 

(1.0

)

 

 

1.2

 

Decrease in cash and cash equivalents

 

 

(55.5

)

 

 

(267.2

)

Cash and cash equivalents at beginning of period

 

 

125.4

 

 

 

805.9

 

Cash and cash equivalents at end of period

 

$

69.9

 

 

$

538.7

 

 

 

 

 

 

 

Supplemental disclosures:

 

 

 

 

 

 

Cash paid for interest

 

$

17.8

 

 

$

8.4

 

Cash paid for income taxes, net of refunds

 

 

25.4

 

 

 

1.5

 

Cash paid for operating lease liabilities

 

 

13.9

 

 

 

12.4

 

Operating right-of-use assets obtained

 

 

12.7

 

 

 

7.8

 

Finance right-of-use assets obtained

 

 

6.5

 

 

 

10.9

 

Property, plant and equipment additions - noncash

 

 

17.4

 

 

 

20.9

 

 

The accompanying notes are an integral part of these financial statements.

7


OSHKOSH CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Basis of Presentation

In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements contain all adjustments (which include normal recurring adjustments, unless otherwise noted) necessary to present fairly the financial position, results of operations and cash flows for the periods presented. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) have been condensed or omitted pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These Condensed Consolidated Financial Statements should be read in conjunction with the audited financial statements and notes thereto included in the Annual Report on Form 10-K of Oshkosh Corporation for the year ended December 31, 2023. The interim results are not necessarily indicative of results for any other interim period or for 2024. Certain reclassifications have been made to the prior period financial statements to conform to the presentation as of and for the three months ended March 31, 2024.

2. New Accounting Standards

Standards not yet adopted

In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures. The standard improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The Company will be required to adopt ASU 2023-07 for its Annual Report on Form 10-K for the year ended December 31, 2024. The Company does not expect the adoption of ASU 2023-07 will have a material impact on the Company’s consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures. The standard requires that public business entities (1) disclose specific categories in the income tax rate reconciliation and (2) provide additional information for reconciling items if the effect of those reconciling items is equal to or greater than 5% of the amount computed by multiplying pre-tax income or loss by the applicable statutory income tax rate. The standard also requires additional disclosures about income taxes paid, the allocation of income or loss from continuing operations disaggregated between domestic and foreign, and income tax expense disaggregated by federal, state and foreign. The Company will be required to adopt ASU 2023-07 for its Annual Report on Form 10-K for the year ended December 31, 2025. The Company does not expect the adoption of ASU 2023-09 will have a material impact on the Company’s consolidated financial statements.

3. Acquisitions and Divestitures

Acquisition of AeroTech

On August 1, 2023, the Company acquired 100% of JBT AeroTech (AeroTech) from JBT Corporation for $803.6 million, net of cash acquired and subject to customary post-closing adjustments. AeroTech, a leading provider of aviation ground support products, gate equipment and airport services provided to commercial airlines, airports, air-freight carriers, ground handling customers and the military, is part of the Vocational segment. The purchase price included $808.0 million in cash, a receivable of $10.0 million for certain post-closing information technology integration costs, a $1.0 million receivable for state tax liabilities, a payable of $5.1 million for certain post-closing working capital adjustments and a payable of $1.5 million for required equity replacement awards. The acquisition was funded with cash on hand and borrowings under the Company’s existing revolving credit facility. See Note 13 for additional information regarding the Company’s debt. During the first quarter of 2024, the Company paid JBT Corporation $5.1 million for post-closing working capital adjustments.

The results of AeroTech have been included in the Company’s Condensed Consolidated Statements of Income from the date of acquisition. AeroTech had sales of $176.1 million during the three months ended March 31, 2024.

8


Table of Contents

OSHKOSH CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

 

The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed as of the date of acquisition (in millions):

Assets Acquired:

 

 

 

Cash and cash equivalents

 

$

9.3

 

 

 

 

 

Accounts receivable

 

$

75.0

 

Unbilled receivables

 

 

57.8

 

Inventories

 

 

153.7

 

Other current assets

 

 

7.6

 

Property, plant and equipment

 

 

44.6

 

Goodwill

 

 

260.3

 

Purchased intangible assets

 

 

330.4

 

Other non-current assets

 

 

7.6

 

Total assets, excluding cash and cash equivalents

 

$

937.0

 

 

 

 

Liabilities Assumed:

 

 

 

Accounts payable

 

$

63.2

 

Customer advances

 

 

24.8

 

Payroll-related obligations

 

 

13.8

 

Other current liabilities

 

 

20.7

 

Deferred income taxes

 

 

2.6

 

Non-current liabilities

 

 

8.3

 

Total liabilities

 

$

133.4

 

Net assets acquired

 

$

803.6

 

The purchase price, net of cash acquired, was allocated based on the estimated fair value of the assets acquired and liabilities assumed at the date of acquisition with the excess purchase price recorded as goodwill, all of which was allocated to the Vocational segment. The majority of the goodwill is deductible for income tax purposes. The purchase price allocations are preliminary at March 31, 2024 and may be subsequently adjusted to reflect the finalization of liabilities related to income taxes.

Unaudited pro forma financial information

The following table presents the supplemental consolidated results of the Company on an unaudited pro forma basis as if the acquisition of AeroTech had been completed on January 1, 2022 (in millions). The primary adjustments reflected in the unaudited pro-forma information related to (1) increase in interest expense for debt used to fund the acquisition and lower interest income due to less cash on hand available to be invested and (2) changes related to purchase accounting primarily related to amortization of purchased intangible assets recorded in conjunction with the acquisition. Adjustments to net income have been reflected net of income tax effects. The unaudited pro forma information does not include any anticipated cost savings or other effects of future integration efforts and does not purport to be indicative of results that actually would have been achieved if the operations were combined during the periods presented and is not intended to be a projection. The unaudited pro forma financial information does not reflect any potential cost savings, operating efficiencies, debt pay down, financial synergies or other strategic benefits as a result of the acquisition or any restructuring costs to achieve those benefits.

 

 

Three Months Ended
March 31, 2023

 

Net sales

 

$

2,409.4

 

Net income

 

 

79.6

 

 

9


Table of Contents

OSHKOSH CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

 

Acquisition of Hinowa

On January 31, 2023, the Company acquired Hinowa S.p.A. (Hinowa), an Italian manufacturer of compact crawler booms and tracked equipment, for 171.8 million ($186.8 million), net of cash acquired. Hinowa is part of the Access segment. The results of Hinowa have been included in the Company’s Condensed Consolidated Statements of Income from the date of acquisition. Pro-forma results of operations have not been presented as the effect of the acquisition is not material to any periods presented.

Divestitures

On March 1, 2023, the Company completed the sale of its rear-discharge concrete mixer business for $32.9 million. A pre-tax loss of $13.3 million was recognized on the sale during the first quarter of 2023, which is included in selling, general and administrative expense in the Company’s Condensed Consolidated Statements of Income. The rear-discharge concrete mixer business, which was included in the Vocational segment, had sales of $25.9 million during the three months ended March 31, 2023.

On July 24, 2023, the Company completed the sale of its snow removal apparatus business for $17.1 million. A pre-tax gain of $8.0 million was recognized on the sale during the third quarter of 2023. The snow removal apparatus business, which was included in the Defense segment, had sales of $3.7 million during the three months ended March 31, 2023.

4. Revenue Recognition

The Company utilizes the cost-to-cost method of percentage-of-completion to recognize revenue on its performance obligations that are satisfied over time because it best depicts the transfer of control to the customer. Under the cost-to-cost method of percentage-of-completion, the Company measures progress based on the ratio of costs incurred to date to total estimated costs for the performance obligation. The Company recognizes changes in estimated sales or costs and the resulting profit or loss on a cumulative basis. Contract adjustments represent the cumulative effect of the changes on prior periods. If a loss is expected on a performance obligation, the complete estimated loss is recorded in the period in which the loss is identified.

There is significant judgment involved in estimating sales and costs, most notably within the Defense segment. Each contract is evaluated at contract inception to identify risks and estimate revenue and costs. In performing this evaluation, the Company considers risks of contract performance such as technical requirements, schedule, duration and key contract dependencies. These considerations are then factored into the Company’s estimated revenue and costs. Preliminary contract estimates are subject to change throughout the duration of the contract as additional information becomes available that impacts risks and estimated revenue and costs. In addition, as contract modifications (e.g., new orders) are received, the additional units are factored into the overall contract estimate of costs and transaction price.

Net contract adjustments impacted the Company’s results as follows (in millions, except per share amounts):

 

 

Three Months Ended
March 31,

 

 

 

2024

 

 

2023

 

Net sales

 

$

(10.0

)

 

$

(6.5

)

Operating income

 

 

(13.1

)

 

 

(14.4

)

Net income

 

 

(10.0

)

 

 

(11.0

)

Diluted earnings per share

 

$

(0.15

)

 

$

(0.17

)

The Defense segment incurs pre-production engineering, factory setup and other contract fulfillment costs related to products produced for its customers under long-term contracts. An asset is recognized for costs incurred to fulfill an existing contract or highly-probable anticipated contract if such costs generate or enhance resources that will be used in satisfying performance obligations in the future and the costs are expected to be recovered. Costs related to customer-owned tooling that will be used in production and for which the customer has provided a non-cancelable right to use the tooling to perform

10


Table of Contents

OSHKOSH CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

 

during the contract term are also recognized as an asset. Under the Next Generation Delivery Vehicles (NGDV) contract with the United States Postal Service (USPS), the Company has determined that it does not transfer control of any goods or services to the USPS until the construction of the production vehicles. Deferred contract costs will be amortized over the anticipated production volume of the NGDV contract. The Company periodically assesses its contract fulfillment and customer-owned tooling for impairment. The Company did not recognize any impairment losses on contract fulfillment or customer-owned tooling costs in the three months ended March 31, 2024 or 2023.

Deferred contract costs, the majority of which are related to the NGDV contract, consisted of the following (in millions):

 

 

March 31,

 

 

December 31,

 

 

 

2024

 

 

2023

 

Costs for anticipated contracts

 

$

6.6

 

 

$

6.2

 

Engineering costs

 

 

482.0

 

 

 

439.6

 

Factory setup costs

 

 

52.5

 

 

 

44.4

 

Customer-owned tooling

 

 

252.3

 

 

 

220.5

 

Deferred contract costs

 

$

793.4

 

 

$

710.7

 

Disaggregation of Revenue

Consolidated net sales disaggregated by segment and timing of revenue recognition are as follows (in millions):

 

 

Three Months Ended March 31, 2024

 

 

 

Access

 

 

Defense

 

 

Vocational

 

 

Eliminations

 

 

Total

 

Point in time

 

$

1,221.6

 

 

$

2.3

 

 

$

560.6

 

 

$

(3.0

)

 

$

1,781.5

 

Over time

 

 

15.9

 

 

 

534.6

 

 

 

211.8

 

 

 

 

 

 

762.3

 

 

$

1,237.5

 

 

$

536.9

 

 

$

772.4

 

 

$

(