XML 59 R39.htm IDEA: XBRL DOCUMENT v3.8.0.1
Shareholders' Equity and Long-Term Incentive Compensation (Tables)
 12 Months Ended
Dec. 31, 2017
SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION  
Computations of the components used for the calculation of basic and diluted income per share
The following table sets forth the computations of the components used for the calculation of basic and diluted income (loss) per share:
 
Year ended December 31,
 
2017
 
2016
 
2015
Numerator:
 
 
 
 
 
Income (loss) from continuing operations
$
84.0

 
$
30.3

 
$
(151.6
)
Less: Net loss attributable to noncontrolling interests
—

 
(0.4
)
 
(33.4
)
Adjustment related to redeemable noncontrolling interest (Note13)
—

 
(18.1
)
 
—

Income (loss) from continuing operations attributable to SPX Corporation common shareholders for calculating basic and diluted income per share
$
84.0

 
$
12.6

 
$
(118.2
)
Income (loss) from discontinued operations, net of tax
$
5.3

 
$
(97.9
)
 
$
34.6

Less: Net loss attributable to noncontrolling interest
—

 
—

 
(0.9
)
Income (loss) from discontinued operations attributable to SPX Corporation common shareholders for calculating basic and diluted income per share
$
5.3

 
$
(97.9
)
 
$
35.5

Denominator:
 
 
 
 
 
Weighted-average number of common shares used in basic income (loss) per share          
42.413

 
41.610

 
40.733

Dilutive securities — Employee stock options, restricted stock shares and restricted stock units
1.492

 
0.551

 
—

Weighted-average number of common shares and dilutive securities used in diluted income (loss) per share          
43.905

 
42.161

 
40.733
Summary of common shares issued, treasury shares and shares outstanding
Common shares issued, treasury shares and shares outstanding are summarized in the table below.
 
Common Stock
Issued
 
Treasury
Stock
 
Shares
Outstanding
December 31, 2014
100.064

 
(59.206
)
 
40.858

Restricted stock shares and restricted stock units
0.102

 
0.096

 
0.198

Other
0.360

 
—

 
0.360

December 31, 2015
100.526

 
(59.110
)
 
41.416

Restricted stock shares and restricted stock units
0.042

 
0.295

 
0.337

Retirement of treasury stock
(50.000
)
 
50.000

 
—

Other
0.187

 
—

 
0.187

December 31, 2016
50.755

 
(8.815
)
 
41.940

Restricted stock units
—

 
0.280

 
0.280

Other
0.431

 
—

 
0.431

December 31, 2017
51.186

 
(8.535
)
 
42.651
Schedule of assumptions to determine the fair value of restricted stock awards granted
We used the following assumptions in determining the fair value of these awards:
 
Annual Expected
Stock Price
Volatility
 
Annual Expected
Dividend Yield
 
Risk-Free Interest Rate
 
Correlation
Between Total
Shareholder
Return for SPX
and the
Applicable
S&P Index
March 1, 2017
 
 
 
 
 
 
 
SPX Corporation
41.03
%
 
—
%
 
1.52
%
 
0.3685
Peer group within S&P 600 Capital Goods Index
34.49
%
 
n/a

 
1.52
%
 
 
March 2, 2016
 
 
 
 
 
 
 
SPX Corporation
36.91
%
 
—
%
 
0.97
%
 
0.3354
Peer group within S&P 600 Capital Goods Index
32.94
%
 
n/a

 
0.97
%
 
 
Schedule of restricted stock share and restricted stock unit activity
The following table summarizes the PSU, RSU, and RS activity from December 31, 2014 through December 31, 2017:
 
Unvested PSU’s, RSU’s, and RS’s
 
Weighted-Average
Grant-Date Fair
Value Per Share
December 31, 2014
1.168

 
$
69.22

Pre-spin:
 
 
 
Granted
0.451

 
81.60

Vested
(0.262
)
 
78.71

Canceled
(0.212
)
 
52.67

Impact of Spin-Off:
 
 
 
Terminations
(0.785
)
 
*

Conversions
1.010

 
*

Post-spin
 
 
 
Granted
0.510

 
12.32

Canceled
(0.011
)
 
20.34

December 31, 2015
1.869

 
17.63

Granted
0.423

 
13.97

Vested
(0.528
)
 
10.32

Forfeited
(0.062
)
 
20.46

December 31, 2016
1.702

 
16.47

Granted
0.252

 
28.22

Vested
(0.483
)
 
18.17

Forfeited
(0.241
)
 
20.83

December 31, 2017
1.230

 
$
17.41
Schedule of assumptions used to estimate fair value of stock option grants
The fair value of each option grant was estimated using a Black-Scholes option-pricing model with the following assumptions:
 
March 1,
2017
 
March 2,
2016
 
October 14
2015
Annual expected stock price volatility
32.00
%
 
30.06
%
 
27.86
%
Annual expected dividend yield
—
%
 
—
%
 
—
%
Risk-free interest rate
2.14
%
 
1.50
%
 
1.64
%
Expected life of stock option (in years)
6.0

 
6.0

 
6.0
Schedule of stock option activity
The following table shows stock option activity from December 31, 2014 through December 31, 2017.
 
Shares
 
Weighted-
Average Exercise
Price
Options outstanding and exercisable at December 31, 2014
—

 
$
—

Granted pre-spin
0.323

 
85.87

Impact of Spin-Off:
 
 
 
Terminations
(0.282
)
 
85.87

Conversions
0.123

 
*

Granted post-spin
0.883

 
12.36

Options outstanding and exercisable at December 31, 2015
1.047

 
12.91

Granted
0.505

 
12.85

Options outstanding and exercisable at December 31, 2016
1.552

 
12.89

Exercised
(0.125
)
 
20.67

Forfeited
(0.027
)
 
14.45

Granted
0.208

 
27.40

Options outstanding and exercisable at December 31, 2017
1.608

 
$
14.67
Schedule of changes in the components of accumulated other comprehensive income
The changes in the components of accumulated other comprehensive income, net of tax, for the year ended December 31, 2017 were as follows:
 
Foreign
Currency
Translation
Adjustment
 
Net Unrealized
Gains on
Qualifying
Cash
Flow
Hedges(3)
 
Pension and
Postretirement
Liability Adjustment
and Other(1)(4)
 
Total
December 31, 2016
$
229.7

 
$
1.5

 
$
3.9

 
$
235.1

Other comprehensive income before reclassifications (1)
0.5

 
2.3

 
16.3

 
19.1

Amounts reclassified from accumulated other comprehensive income (2)
—

 
(3.0
)
 
(1.1
)
 
(4.1
)
Current-period other comprehensive income (loss)
0.5

 
(0.7
)
 
15.2

 
15.0

December 31, 2017
$
230.2

 
$
0.8

 
$
19.1

 
$
250.1

___________________________________________________________________
(1) As indicated in Note 9, we reduced our unfunded liability related to postretirement benefits and increased “Accumulated other comprehensive income” (before tax) by $26.8.
(2) As indicated in Note 12, we discontinued hedge accounting for our Swaps resulting in a reclassification from “Accumulated other comprehensive income” (before tax) of $2.7.
(3) 
Net of tax provision of $0.5 and $0.9 as of December 31, 2017 and 2016, respectively.
(4) Net of tax provision of $12.5 and $2.7 as of December 31, 2017 and 2016, respectively. The balances as of December 31, 2017 and 2016 include unamortized prior service credits.
The changes in the components of accumulated other comprehensive income, net of tax, for the year ended December 31, 2016 were as follows:
 
Foreign
Currency
Translation
Adjustment
 
Net Unrealized
Losses on
Qualifying
Cash
Flow
Hedges(2)
 
Pension and
Postretirement
Liability Adjustment
and Other(3)
 
Total
Balance at December 31, 2015
$
280.6

 
$
(1.8
)
 
$
4.5

 
$
283.3

Other comprehensive income (loss) before reclassifications
(11.9
)
 
1.1

 
—

 
(10.8
)
Amounts reclassified from accumulated other comprehensive income (1)
(39.0
)
 
2.2

 
(0.6
)
 
(37.4
)
Current-period other comprehensive income (loss)
(50.9
)
 
3.3

 
(0.6
)
 
(48.2
)
Balance at December 31, 2016
$
229.7

 
$
1.5

 
$
3.9

 
$
235.1

___________________________________________________________________
(1) 
In connection with the sale of our dry cooling business, we reclassified $40.4 of other comprehensive income related to foreign currency translation to “Gain on sale of dry cooling business.”
(2) 
Net of tax (provision) benefit of $(0.9) and $0.8 as of December 31, 2016 and 2015, respectively.
(3) 
Net of tax provision of $2.7 and $3.1 as of December 31, 2016 and 2015, respectively. The balances as of December 31, 2016 and 2015 include unamortized prior service credits.
Schedule of amounts reclassified from each component of accumulated comprehensive income (loss)
The following summarizes amounts reclassified from each component of accumulated comprehensive income for the years ended December 31, 2017 and 2016:
 
Amount
Reclassified
from
AOCI
 
Affected
Line Items
in the
Consolidated Statements of
Operations
 
Year ended
December 31,
 
 
 
2017
 
2016
 
 
(Gains) losses on qualifying cash flow hedges:
 
 
 
 
 
FX forward contracts
$
—

 
$
1.0

 
Revenues
Commodity contracts
(2.5
)
 
2.0

 
Cost of products sold
Swaps
0.3

 
—

 
Interest Expense
Swaps
(2.7
)
 
—

 
Other Expense, net
Pre-tax
(4.9
)
 
3.0

 
 
Income taxes
1.9

 
(0.8
)
 
 
 
$
(3.0
)
 
$
2.2

 
 
Pension and postretirement items:
 
 
 
 
 
Amortization of unrecognized prior service credits - Pre-tax
$
(1.8
)
 
$
(1.0
)
 
Selling, general and administrative
Income taxes
0.7

 
0.4

 
 
 
$
(1.1
)
 
$
(0.6
)
 
 
 
 
 
 
 
 
Recognition of foreign currency translation adjustments related to business dispositions:
 
 
 
 
 
Recognition of foreign currency translation adjustment associated with the sale of our dry cooling business
$
—

 
$
(40.4
)
 
Gain on sale of dry cooling business
Recognition of foreign currency translation adjustment associated with the sale our Balcke Dürr business
—

 
1.4

 
Gain (loss) on disposition of discontinued operations, net of tax
 
$
—

 
$
(39.0
)