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Business Combinations (Tables) | 6 Months Ended
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Jun. 30, 2023
Business Combination and Asset Acquisition [Abstract] |
Schedule Of Consideration | The following table shows the purchase price in accordance with ASC 805:
Description |
Cash consideration to seller | $ | 2,788.3 |
Howden's debt settled at close | 1,529.0 |
Settlement of seller transaction costs | 67.2 |
Funds held in escrow | 20.4 |
Total ASC 805 purchase price | $ | 4,404.9 |
Schedule of Recognized Identified Assets Acquired in Business Combination | The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed in the Howden Acquisition as of the acquisition date:
| June 30, 2023 |  | Adjustments |  | As previously Reported March 31, 2023
Net assets acquired: |  |  |  |  |
Cash and cash equivalents | $ | 62.5 |  |  | $ | — |  |  | $ | 62.5 |
Restricted cash | 2.6 |  |  | — |  |  | 2.6 |
Accounts receivable | 456.0 |  |  | (5.2) |  |  | 461.2 |
Inventories | 306.5 |  |  | 57.7 |  |  | 248.8 |
Unbilled contract revenue | 194.7 |  |  | — |  |  | 194.7 |
Prepaid expenses | 58.5 |  |  | — |  |  | 58.5 |
Other current assets | 108.3 |  |  | (3.8) |  |  | 112.1 |
Property, plant and equipment | 362.0 |  |  | 74.4 |  |  | 287.6 |
Identifiable intangible assets | 2,551.0 |  |  | (40.0) |  |  | 2,591.0 |
Equity method investments | 22.3 |  |  | 12.2 |  |  | 10.1 |
Other assets | 168.1 |  |  | — |  |  | 168.1 |
Accounts payable | (384.7) |  |  | (1.0) |  |  | (383.7) |
Customer advances and billings in excess of contract revenue | (280.4) |  |  | (12.3) |  |  | (268.1) |
Accrued salaries, wages and benefits | (104.1) |  |  | 0.1 |  |  | (104.2) |
Accrued income taxes | (51.4) |  |  | — |  |  | (51.4) |
Current portion of warranty reserve | (31.9) |  |  | (3.4) |  |  | (28.5) |
Current portion of long-term debt (1) | (1.6) |  |  | — |  |  | (1.6) |
Other current liabilities | (85.9) |  |  | (23.4) |  |  | (62.5) |
Long-term deferred tax liabilities | (680.4) |  |  | 49.0 |  |  | (729.4) |
Operating lease liabilities | (54.6) |  |  | — |  |  | (54.6) |
Finance lease liabilities | (8.1) |  |  | — |  |  | (8.1) |
Accrued pension liabilities | (6.0) |  |  | 0.4 |  |  | (6.4) |
Other long-term liabilities | (5.6) |  |  | — |  |  | (5.6) |
Total identifiable net assets assumed | 2,597.8 |  |  | 104.7 |  |  | 2,493.1 |
Noncontrolling interest (2) | (129.3) |  |  | (102.8) |  |  | (26.5) |
Goodwill | 1,936.4 |  |  | (1.9) |  |  | 1,938.3 |
Net assets acquired | $ | 4,404.9 |  |  | $ | — |  |  | $ | 4,404.9 |
Assets acquired net of cash, cash equivalents and restricted cash | $ | 4,339.8 |  |  | $ | — |  |  | $ | 4,339.8 |
_______________ (1)Represents the balance related to short term debt held in Foreign Facilities. Refer to Note 9, “Debt and Credit Arrangements.” (2)As part of the Howden Acquisition, we acquired a noncontrolling interest, which owns 82% of Howden Hua Engineering Co., Ltd, and entity based in China which is valued at $129.3.
Schedule of Identifiable Intangible Assets Acquired | The following table summarizes information regarding preliminary identifiable intangible assets acquired in the Howden Acquisition:
| Estimated Useful Lives |  | June 30, 2023 |  | Adjustments |  | As previously Reported March 31, 2023
Finite-lived intangible assets acquired: |  |  |  |  |  |  |
Customer relationships | 18 years |  | $ | 1,592.0 |  |  | $ | 277.0 |  |  | $ | 1,315.0 |
Backlog | 3 years |  | 145.0 |  |  | (214.0) |  |  | 359.0 |
Technology | 5 to 14 years |  | 312.0 |  |  | (7.0) |  |  | 319.0 |
Total finite-lived intangible assets acquired |  |  | 2,049.0 |  |  | 56.0 |  |  | 1,993.0 |
Indefinite-lived intangible assets acquired: |  |  |  |  |  |  |
Trade names |  |  | 502.0 |  |  | (96.0) |  |  | 598.0 |
Total intangible assets acquired |  |  | $ | 2,551.0 |  |  | $ | (40.0) |  |  | $ | 2,591.0 |
Schedule of pro forma information | The following unaudited pro forma combined financial information for the three and six months ended June 30, 2023 and 2022 gives effect to the Howden Acquisition, and the Roots divestiture, as if both occurred on January 1, 2022. The unaudited pro forma information is not necessarily indicative of the results of operations that actually would have occurred under the ownership and management of the Company. In addition, the unaudited pro forma information is not intended to be a projection of future results and does not reflect any operating efficiencies or cost savings that might be achievable. The following adjustments are reflected in the unaudited pro forma financial table below: •the effect of increased interest expense related to the repayment of the Howden term loans, senior notes and revolving credit facility net of the additional borrowing on the Chart senior secured revolving credit facility and senior secured and unsecured notes, •amortization of acquired intangible assets, •an adjustment to reflect the change in the estimated income tax rate for federal and state purposes, •nonrecurring acquisition-related expenses incurred by Howden and directly attributable to the Howden Acquisition were adjusted out of the pro forma net loss attributable to Chart Industries, Inc. from continuing operations for the periods presented, and •nonrecurring acquisition-related expenses incurred by Chart and directly related to the Howden acquisition were adjusted out of the pro forma net loss attributable to Chart Industries, Inc. from continuing operations for the periods presented.
| Three Months Ended June 30, 2023 |  | Six Months Ended June 30, 2023
| 2023 |  | 2022 |  | 2023 |  | 2022
Pro forma sales from continuing operations | $ | 908.1 |  |  | $ | 823.4 |  |  | $ | 1,744.8 |  |  | $ | 1,574.3 |
Pro forma net income (loss) attributable to Chart Industries, Inc. from continuing operations | 9.1 |  |  | (14.7) |  |  | (63.3) |  |  | (90.1) |
Schedule of Changes in Contingent Consideration | The following table represents the changes to our contingent consideration liabilities:
| SES |  | BIG |  | MP |  | Total
Balance at December 31, 2022 | $ | 16.3 |  |  | $ | 1.0 |  |  | $ | — |  |  | $ | 17.3 |
(Decrease) increase in fair value of contingent consideration liabilities (1) (2) | (7.0) |  |  | 0.7 |  |  | (0.2) |  |  | (6.5) |
Acquired contingent consideration liabilities | — |  |  | — |  |  | 2.9 |  |  | 2.9 |
Payment of contingent consideration | — |  |  | (1.7) |  |  | — |  |  | (1.7) |
Balance at June 30, 2023 | $ | 9.3 |  |  | $ | — |  |  | $ | 2.7 |  |  | $ | 12.0 |
_______________ (1)For the three months ended June 30, 2023, the fair value of contingent consideration related to SES increased by $0.4 (decreased $0.3 for the three months ended June 30, 2022). For the six months ended June 30, 2023, the fair value of contingent consideration related to SES decreased by $7.0 (decreased by $0.8 during the six months ended June 30, 2022). The decrease in estimated fair value of contingent consideration related to SES during the current period was due to the lower probability of achieving technical milestones within the agreed upon time. (2)For the three months ended June 30, 2023, the fair value of contingent consideration related to BIG decreased by $0.7 (increased by $0.1 for the three months ended June 30, 2022). For the six months ended June 30, 2023, the fair value of contingent consideration related to BIG increased by $0.7 (decreased by $0.2 during the six months ended June 30, 2022).

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- Definition Tabular disclosure of the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed. May include but not limited to the following: (a) acquired receivables; (b) contingencies recognized at the acquisition date; and (c) the fair value of noncontrolling interests in the acquiree. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 805 -SubTopic 20 -Name Accounting Standards Codification -Paragraph 1 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479907/805-20-50-1 + Details
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