XML 84 R23.htm IDEA: XBRL DOCUMENT v2.4.0.8
Operations and Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2013
Operations and Summary of Significant Accounting Policies [Abstract]  
Trade Allowances and Sales Incentive Discounts
Accounts and notes receivable allowances at December 31, 2013 and 2012 were as follows (in millions):
 
2013
 
2012
Sales incentive discounts
$
30.4

 
$
21.5

Doubtful accounts
34.9

 
38.1

 
$
65.3

 
$
59.6
Schedule of Inventory, Current
Inventories, net at December 31, 2013 and 2012 were as follows (in millions):
 
2013
 
2012
Finished goods
$
775.7

 
$
598.5

Repair and replacement parts
550.2

 
505.6

Work in process
109.0

 
137.5

Raw materials
581.2

 
461.5

Inventories, net
$
2,016.1

 
$
1,703.1
Property, Plant and Equipment
Property, plant and equipment, net at December 31, 2013 and 2012 consisted of the following (in millions):
 
2013
 
2012
Land
$
109.3

 
$
100.1

Buildings and improvements
714.8

 
618.8

Machinery and equipment
1,852.0

 
1,616.2

Furniture and fixtures
288.7

 
244.5

Gross property, plant and equipment
2,964.8

 
2,579.6

Accumulated depreciation and amortization
(1,362.5
)
 
(1,173.5
)
Property, plant and equipment, net
$
1,602.3

 
$
1,406.1
Schedule of Goodwill
Changes in the carrying amount of goodwill during the years ended December 31, 2013, 2012 and 2011 are summarized as follows (in millions):
 
North
America
 
South
America
 
Europe/Africa/
Middle East
 
Asia/Pacific
 
Consolidated
Balance as of December 31, 2010
$
3.1

 
$
196.7

 
$
432.9

 
$
—

 
$
632.7

Acquisition
412.8

 
38.3

 
85.3

 
69.3

 
605.7

Adjustments related to income taxes
—

 
—

 
(9.1
)
 
—

 
(9.1
)
Foreign currency translation
—

 
(22.8
)
 
(12.3
)
 
0.3

 
(34.8
)
Balance as of December 31, 2011
415.9

 
212.2

 
496.8

 
69.6

 
1,194.5

Acquisition
0.8

 
29.0

 
—

 
(3.7
)
 
26.1

Impairment charge
—

 
—

 
—

 
(9.1
)
 
(9.1
)
Adjustments related to income taxes
—

 
—

 
(7.8
)
 
—

 
(7.8
)
Foreign currency translation
—

 
(21.9
)
 
9.3

 
1.3

 
(11.3
)
Balance as of December 31, 2012
416.7

 
219.3

 
498.3

 
58.1

 
1,192.4

Acquisition
7.3

 
—

 
—

 
—

 
7.3

Adjustments related to income taxes
—

 
—

 
(8.0
)
 
—

 
(8.0
)
Foreign currency translation
—

 
(28.6
)
 
16.3

 
(0.7
)
 
(13.0
)
Balance as of December 31, 2013
$
424.0

 
$
190.7

 
$
506.6

 
$
57.4

 
$
1,178.7
Schedule of Acquired Finite-Lived Intangible Assets by Major Class
Changes in the carrying amount of acquired intangible assets during 2013 and 2012 are summarized as follows (in millions):
 
Trademarks and
trade names
 
Customer
Relationships
 
Patents and
Technology
 
Land Use Rights
 
Total
Gross carrying amounts:
 

 
 

 
 

 
 
 
 

Balance as of December 31, 2011
$
118.1

 
$
511.4

 
$
85.7

 
$
8.6

 
$
723.8

Acquisition
1.5

 
—

 
1.1

 
—

 
2.6

Foreign currency translation
(0.7
)
 
(3.6
)
 
0.8

 
0.1

 
(3.4
)
Balance as of December 31, 2012
118.9

 
507.8

 
87.6

 
8.7

 
723.0

Acquisition
—

 
—

 
—

 
6.0

 
6.0

Foreign currency translation
(0.3
)
 
(5.1
)
 
1.5

 
0.2

 
(3.7
)
Balance as of December 31, 2013
$
118.6

 
$
502.7

 
$
89.1

 
$
14.9

 
$
725.3


 
Trademarks and
trade names
 
Customer
Relationships
 
Patents and
Technology
 
Land Use Rights
 
Total
Accumulated amortization:
 

 
 

 
 

 
 
 
 

Balance as of December 31, 2011
$
13.1

 
$
85.3

 
$
50.3

 
$
—

 
$
148.7

Amortization expense
6.7

 
39.4

 
3.0

 
0.2

 
49.3

Impairment charge
5.6

 
5.4

 
—

 
2.3

 
13.3

Foreign currency translation
(0.5
)
 
(3.5
)
 
0.8

 
—

 
(3.2
)
Balance as of December 31, 2012
24.9

 
126.6

 
54.1

 
2.5

 
208.1

Amortization expense
6.2

 
38.4

 
3.0

 
0.2

 
47.8

Foreign currency translation
(0.1
)
 
(4.3
)
 
1.9

 
—

 
(2.5
)
Balance as of December 31, 2013
$
31.0

 
$
160.7

 
$
59.0

 
$
2.7

 
$
253.4


The acquired intangible assets have a weighted average useful life as follows:
Intangible Asset
 
Weighted-Average
Useful Life
Patents and technology
 
13
years
Customer relationships
 
14
years
Trademarks and trade names
 
21
years
Land use rights
 
47
years
Schedule of Indefinite-lived Intangible Assets by Major Class
 
Trademarks and
trade names
Indefinite-lived intangible assets:
 

Balance as of December 31, 2011
$
91.4

Foreign currency translation
0.8

Balance as of December 31, 2012
92.2

Foreign currency translation
1.5

Balance as of December 31, 2013
$
93.7
Schedule of Accrued Liabilities
Accrued expenses at December 31, 2013 and 2012 consisted of the following (in millions):
 
2013
 
2012
Reserve for volume discounts and sales incentives
$
499.8

 
$
403.9

Warranty reserves
255.9

 
223.9

Accrued employee compensation and benefits
276.9

 
249.7

Accrued taxes
167.3

 
169.3

Other
189.3

 
179.7

 
$
1,389.2

 
$
1,226.5
Schedule of Product Warranty Liability
The warranty reserve activity for the years ended December 31, 2013, 2012 and 2011 consisted of the following (in millions):
 
2013
 
2012
 
2011
Balance at beginning of the year
$
256.9

 
$
240.5

 
$
199.5

Acquisitions
—

 
0.1

 
7.2

Accruals for warranties issued during the year
200.3

 
184.5

 
195.1

Settlements made (in cash or in kind) during the year
(165.7
)
 
(171.7
)
 
(152.6
)
Foreign currency translation
3.4

 
3.5

 
(8.7
)
Balance at the end of the year
$
294.9

 
$
256.9

 
$
240.5
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs
Stock compensation expense was recorded as follows (in millions). Refer to Note 9 for additional information regarding the Company’s stock incentive plans during 2013, 2012 and 2011:
 
Years Ended
December 31,
 
2013
 
2012
 
2011
Cost of goods sold
$
2.3

 
$
2.4

 
$
1.6

Selling, general and administrative expenses
32.6

 
34.6

 
23.0

Total stock compensation expense
$
34.9

 
$
37.0

 
$
24.6
Schedule of Components of Interest Expense, Net
Interest expense, net for the years ended December 31, 2013, 2012 and 2011 consisted of the following (in millions):
 
2013
 
2012
 
2011
Interest expense
$
78.8

 
$
77.7

 
$
59.0

Interest income
(20.8
)
 
(20.1
)
 
(28.8
)
 
$
58.0

 
$
57.6

 
$
30.2
Schedule of Earnings Per Share, Basic and Diluted
A reconciliation of net income attributable to AGCO Corporation and its subsidiaries and weighted average common shares outstanding for purposes of calculating basic and diluted net income per share during the years ended December 31, 2013, 2012 and 2011 is as follows (in millions, except per share data):
 
2013
 
2012
 
2011
Basic net income per share:
 

 
 

 
 

Net income attributable to AGCO Corporation and subsidiaries
$
597.2

 
$
522.1

 
$
583.3

Weighted average number of common shares outstanding
97.3

 
97.1

 
95.6

Basic net income per share attributable to AGCO Corporation and subsidiaries
$
6.14

 
$
5.38

 
$
6.10

Diluted net income per share:
 

 
 

 
 

Net income attributable to AGCO Corporation and subsidiaries
$
597.2

 
$
522.1

 
$
583.3

Weighted average number of common shares outstanding
97.3

 
97.1

 
95.6

Dilutive stock options, SSARs, performance share awards and restricted stock awards
0.8

 
1.0

 
0.6

Weighted average assumed conversion of contingently convertible senior subordinated notes
1.3

 
0.5

 
1.9

Weighted average number of common shares and common share equivalents outstanding for purposes of computing diluted net income per share
99.4

 
98.6

 
98.1

Diluted net income per share attributable to AGCO Corporation and subsidiaries
$
6.01

 
$
5.30

 
$
5.95
Schedule of Comprehensive Income (Loss)
The components of other comprehensive loss and the related tax effects for the years ended December 31, 2013, 2012 and 2011 are as follows (in millions):
 
AGCO Corporation and Subsidiaries
 
Noncontrolling
Interests
 
2013
 
2013
 
Before-tax
Amount
 
Income
Taxes
 
After-tax
Amount
 
After-tax
Amount
Defined benefit pension plans
$
75.8

 
$
(19.3
)
 
$
56.5

 
$
—

Net loss on derivatives
(1.4
)
 
0.5

 
(0.9
)
 
—

Foreign currency translation adjustments
(86.9
)
 
—

 
(86.9
)
 
(0.3
)
Total components of other comprehensive loss
$
(12.5
)
 
$
(18.8
)
 
$
(31.3
)
 
$
(0.3
)

 
AGCO Corporation and Subsidiaries
 
Noncontrolling
Interests
 
2012
 
2012
 
Before-tax
Amount
 
Income
Taxes
 
After-tax
Amount
 
After-tax
Amount
Defined benefit pension plans
$
(32.5
)
 
$
9.8

 
$
(22.7
)
 
$
—

Net gain on derivatives
6.5

 
(1.5
)
 
5.0

 
—

Foreign currency translation adjustments
(61.1
)
 
—

 
(61.1
)
 
(1.6
)
Total components of other comprehensive loss
$
(87.1
)
 
$
8.3

 
$
(78.8
)
 
$
(1.6
)

 
AGCO Corporation and Subsidiaries
 
Noncontrolling
Interests
 
2011
 
2011
 
Before-tax
Amount
 
Income
Taxes
 
After-tax
Amount
 
After-tax
Amount
Defined benefit pension plans
$
(76.0
)
 
$
14.9

 
$
(61.1
)
 
$
—

Net loss on derivatives
(7.1
)
 
1.7

 
(5.4
)
 
—

Unrealized gain on derivatives held by affiliates
2.5

 
—

 
2.5

 
—

Foreign currency translation adjustments
(204.5
)
 
—

 
(204.5
)
 
(0.1
)
Total components of other comprehensive loss
$
(285.1
)
 
$
16.6

 
$
(268.5
)
 
$
(0.1
)