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Employee Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2014
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Schedule of Defined Benefit Plans
The following tables set forth reconciliations of the changes in benefit obligation, plan assets and funded status as of December 31, 2014 and 2013 (in millions):
 
 
Pension and ENPP
 Benefits
 
Postretirement
Benefits
Change in benefit obligation
 
2014
 
2013
 
2014
 
2013
Benefit obligation at beginning of year
 
$
888.2

 
$
881.9

 
$
30.3

 
$
37.0

Service cost
 
16.8

 
18.0

 
0.1

 
0.1

Interest cost
 
37.3

 
35.4

 
1.6

 
1.7

Plan participants’ contributions
 
1.3

 
1.3

 
—

 
—

Actuarial loss (gain)
 
109.6

 
(10.1
)
 
(0.7
)
 
(6.2
)
Settlements
 
(4.2
)
 
(0.6
)
 
—

 
—

Curtailments
 
(7.3
)
 
—

 
—

 
—

Benefits paid
 
(55.9
)
 
(54.1
)
 
(1.6
)
 
(1.8
)
Special termination benefits and other
 
1.3

 
—

 
0.2

 
—

Foreign currency exchange rate changes
 
(60.3
)
 
16.4

 
(0.3
)
 
(0.5
)
Benefit obligation at end of year
 
$
926.8

 
$
888.2

 
$
29.6

 
$
30.3

 
 
 
Pension and ENPP
 Benefits
 
Postretirement
Benefits
 
 
 
Change in plan assets
 
2014
 
2013
 
2014
 
2013
Fair value of plan assets at beginning of year
 
$
660.7

 
$
576.7

 
$
—

 
$
—

Actual return on plan assets
 
73.7

 
81.3

 
—

 
—

Employer contributions
 
43.4

 
42.2

 
1.6

 
1.8

Plan participants’ contributions
 
1.3

 
1.3

 
—

 
—

Benefits paid
 
(55.9
)
 
(54.1
)
 
(1.6
)
 
(1.8
)
Settlements
 
(4.2
)
 
(0.6
)
 
—

 
—

Foreign currency exchange rate changes
 
(41.8
)
 
13.9

 
—

 
—

Fair value of plan assets at end of year
 
$
677.2

 
$
660.7

 
$
—

 
$
—

Funded status
 
$
(249.6
)
 
$
(227.5
)
 
$
(29.6
)
 
$
(30.3
)
Unrecognized net actuarial loss
 
329.7

 
265.5

 
3.3

 
4.1

Unrecognized prior service cost
 
3.2

 
4.6

 
3.7

 
3.9

Accumulated other comprehensive loss
 
(332.9
)
 
(270.1
)
 
(7.0
)
 
(8.0
)
Net amount recognized
 
$
(249.6
)
 
$
(227.5
)
 
$
(29.6
)
 
$
(30.3
)

Amounts recognized in Consolidated Balance Sheets:
 

 
 

 
 

 
 

Other current liabilities
$
(3.3
)
 
$
(4.2
)
 
$
(1.5
)
 
$
(1.8
)
Accrued expenses
(5.4
)
 
(5.4
)
 
—

 
—

Pensions and postretirement health care benefits (noncurrent)
(240.9
)
 
(217.9
)
 
(28.1
)
 
(28.5
)
Net amount recognized
$
(249.6
)
 
$
(227.5
)
 
$
(29.6
)
 
$
(30.3
)
Schedule of Accumulated Other Comprehensive Income (Loss)
The following table sets forth changes in accumulated other comprehensive loss by component, net of tax, attributed to AGCO Corporation and its subsidiaries for the years ended December 31, 2014 and 2013 (in millions):
 
Defined Benefit Pension Plans
 
Cumulative Translation Adjustment
 
Deferred Net Gains (Losses) on Derivatives
 
Total
Accumulated other comprehensive (loss) income, December 31, 2012
$
(262.9
)
 
$
(217.2
)
 
$
0.7

 
$
(479.4
)
Other comprehensive gain (loss) before reclassifications
45.2

 
(86.9
)
 
(1.4
)
 
(43.1
)
Net losses reclassified from accumulated other comprehensive loss
11.3

 
—

 
0.5

 
11.8

Other comprehensive income (loss), net of reclassification adjustments
56.5

 
(86.9
)
 
(0.9
)
 
(31.3
)
Accumulated other comprehensive loss, December 31, 2013
(206.4
)
 
(304.1
)
 
(0.2
)
 
(510.7
)
Other comprehensive loss before reclassifications
(54.8
)
 
(349.0
)
 
(1.4
)
 
(405.2
)
Net losses reclassified from accumulated other comprehensive loss
7.9

 
—

 
1.5

 
9.4

Other comprehensive (loss) income, net of reclassification adjustments
(46.9
)
 
(349.0
)
 
0.1

 
(395.8
)
Accumulated other comprehensive loss, December 31, 2014
$
(253.3
)
 
$
(653.1
)
 
$
(0.1
)
 
$
(906.5
)
Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates
Changing the assumed health care cost trend rates by one percentage point each year and holding all other assumptions constant would have the following effect to service and interest cost for 2014 and the accumulated postretirement benefit obligation at December 31, 2014 (in millions):
 
One Percentage
Point Increase
 
One Percentage
Point Decrease
Effect on service and interest cost
$
0.2

 
$
(0.2
)
Effect on accumulated benefit obligation
$
3.8

 
$
(3.2
)
Pension Benefits  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Net Pension And Postretirement Cost
Net annual pension costs for the years ended December 31, 2014, 2013 and 2012 for the Company’s defined benefit pension plans and ENPP are set forth below (in millions):
Pension benefits
 
2014(1)
 
2013
 
2012
Service cost
 
$
16.8

 
$
18.0

 
$
17.2

Interest cost
 
37.3

 
35.4

 
39.6

Expected return on plan assets
 
(44.5
)
 
(37.6
)
 
(36.3
)
Amortization of net actuarial loss
 
9.5

 
14.0

 
9.8

Amortization of prior service cost
 
0.8

 
0.8

 
0.8

Settlement loss
 
0.4

 
0.1

 
0.2

Curtailment gain
 
(0.5
)
 
—

 
—

Special termination benefits
 
1.3

 
—

 
—

Net annual pension cost
 
$
21.0

 
$
30.7

 
$
31.3


____________________________________
(1) Rounding may impact summation of amounts.
Assumptions Used
The weighted average assumptions used to determine the benefit obligation for the Company’s defined benefit pension plans and ENPP as of December 31, 2014 and 2013 are as follows:
 
2014
 
2013
All plans:
 

 
 

Weighted average discount rate
3.5
%
 
4.4
%
Rate of increase in future compensation
2.5-5.0%

 
2.5-5.0%

U.S.-based plans:
 

 
 

Weighted average discount rate
4.15
%
 
4.75
%
Rate of increase in future compensation(1)
5.0
%
 
5.0
%

____________________________________
(1)Applicable for U.S. unfunded, nonqualified plan.
The weighted average assumptions used to determine the net annual pension costs for the Company’s defined benefit pension plans and ENPP for the years ended December 31, 2014, 2013 and 2012 are as follows:
 
2014
 
2013
 
2012
All plans:
 

 
 

 
 

Weighted average discount rate
4.4
%
 
4.3
%
 
5.0
%
Weighted average expected long-term rate of return on plan assets
6.9
%
 
6.8
%
 
7.0
%
Rate of increase in future compensation
2.5-5.0%

 
2.5-5.0%

 
2.5-5.0%

U.S.-based plans:
 

 
 

 
 

Weighted average discount rate
4.75
%
 
3.85
%
 
4.6
%
Weighted average expected long-term rate of return on plan assets(1)
7.0
%
 
7.0
%
 
7.75
%
Rate of increase in future compensation(2)
5.0
%
 
5.0
%
 
5.0
%

___________________________________
(1) Applicable for U.S. funded, qualified plans.     
(2) Applicable for U.S. unfunded, nonqualified plan.
Schedule of Accumulated Other Comprehensive Income (Loss)
The following table summarizes the activity in accumulated other comprehensive loss related to the Company’s ENPP and defined pension and postretirement benefit plans during the years ended December 31, 2014 and 2013 (in millions):
 
 
Before-Tax
Amount
 
Income
Tax
 
After-Tax
Amount
Accumulated other comprehensive loss as of December 31, 2012
 
$
(355.2
)
 
$
(92.3
)
 
$
(262.9
)
Net loss recognized due to settlement
 
0.1

 
0.1

 
—

Net actuarial gain arising during the year
 
60.1

 
14.9

 
45.2

Amortization of prior service cost
 
1.1

 
0.5

 
0.6

Amortization of net actuarial loss
 
14.5

 
3.8

 
10.7

Accumulated other comprehensive loss as of December 31, 2013
 
$
(279.4
)
 
$
(73.0
)
 
$
(206.4
)
Net loss recognized due to settlement
 
0.6

 
0.2

 
0.4

Net gain recognized due to curtailment
 
(0.5
)
 
(0.1
)
 
(0.4
)
Net actuarial loss arising during the year
 
(72.8
)
 
(18.0
)
 
(54.8
)
Amortization of prior service cost
 
1.0

 
0.4

 
0.6

Amortization of net actuarial loss
 
9.6

 
2.3

 
7.3

Accumulated other comprehensive loss as of December 31, 2014
 
$
(341.5
)
 
$
(88.2
)
 
$
(253.3
)
Allocation of Plan Assets
The fair value of the Company’s pension assets as of December 31, 2013 is as follows (in millions):
 
Total
 
Level 1
 
Level 2
 
Level 3
Equity securities:
 

 
 

 
 

 
 

Global equities
$
132.0

 
$
132.0

 
$
—

 
$
—

Non-U.S. equities
6.7

 
6.7

 
—

 
—

U.K. equities
132.0

 
132.0

 
—

 
—

U.S. large cap equities
13.9

 
13.9

 
—

 
—

U.S. small cap equities
6.2

 
6.2

 
—

 
—

Total equity securities
290.8

 
290.8

 
—

 
—

Fixed income:
 

 
 

 
 

 
 

Aggregate fixed income
6.5

 
6.5

 
—

 
—

International fixed income
180.8

 
180.8

 
—

 
—

Total fixed income share(1)
187.3

 
187.3

 
—

 
—

Cash and equivalents:
 

 
 

 
 

 
 

Cash
10.8

 
—

 
10.8

 
—

Total cash and equivalents
10.8

 
—

 
10.8

 
—

Alternative investments(2)
146.0

 
—

 
—

 
146.0

Miscellaneous funds(3)
25.8

 
—

 
—

 
25.8

Total assets
$
660.7

 
$
478.1

 
$
10.8

 
$
171.8

_______________________________________
(1) 40% of “fixed income” securities are in government treasuries; 31% are in investment-grade corporate bonds; and 29% are in other various fixed income securities.
(2) 35% of “alternative investments” are in long-short equity funds; 29% are in event-driven funds; 12% are in relative value funds; 12% are in credit funds; 7% are distributed in hedged and non-hedged funds; and 5% are in multi-strategy funds.
(3) “Miscellaneous funds” is comprised of pooled funds in Australia and various contracts in Finland, Norway and Switzerland
The fair value of the Company’s pension assets as of December 31, 2014 is as follows (in millions):
 
Total
 
Level 1
 
Level 2
 
Level 3
Equity securities:
 

 
 

 
 

 
 

Global equities
$
135.9

 
$
135.9

 
$
—

 
$
—

Non-U.S. equities
4.3

 
4.3

 
—

 
—

U.K. equities
122.8

 
122.8

 
—

 
—

U.S. large cap equities
7.1

 
7.1

 
—

 
—

U.S. small cap equities
4.5

 
4.5

 
—

 
—

Total equity securities
274.6

 
274.6

 
—

 
—

Fixed income:
 

 
 

 
 

 
 

Aggregate fixed income
17.5

 
17.5

 
—

 
—

International fixed income
230.5

 
230.5

 
—

 
—

Total fixed income share(1)
248.0

 
248.0

 
—

 
—

Cash and equivalents:
 

 
 

 
 

 
 

Cash
7.5

 
—

 
7.5

 
—

Total cash and equivalents
7.5

 
—

 
7.5

 
—

Alternative investments(2)
124.3

 
—

 
—

 
124.3

Miscellaneous funds(3)
22.8

 
—

 
—

 
22.8

Total assets
$
677.2

 
$
522.6

 
$
7.5

 
$
147.1

______________________________________
(1) 39% of “fixed income” securities are in government treasuries; 37% are in investment-grade corporate bonds; and 24% are in other various fixed income securities.
(2) 34% of “alternative investments” are in long-short equity funds; 31% are in event-driven funds; 12% are in relative value funds; 10% are in credit funds; 9% are distributed in hedged and non-hedged funds; and 4% are in multi-strategy funds.
(3) “Miscellaneous funds” is comprised of insurance contracts in Finland, Norway and Switzerland.
Reconciliation of Significant Unobservable Inputs, Changes in Plan Assets
The following is a reconciliation of Level 3 assets as of December 31, 2014 (in millions):
 
Total
 
Alternative
Investments
 
Miscellaneous
Funds
Beginning balance as of December 31, 2013
$
171.8

 
$
146.0

 
$
25.8

Actual return on plan assets:
 

 
 

 
 

(a) Relating to assets still held at reporting date
6.3

 
5.1

 
1.2

(b) Relating to assets sold during period
2.3

 
2.3

 
—

Purchases, sales and /or settlements
(22.6
)
 
(21.7
)
 
(0.9
)
Foreign currency exchange rate changes
(10.7
)
 
(7.4
)
 
(3.3
)
Ending balance as of December 31, 2014
$
147.1

 
$
124.3

 
$
22.8

The following is a reconciliation of Level 3 assets as of December 31, 2013 (in millions):
 
Total
 
Alternative
Investments
 
Miscellaneous
Funds
Beginning balance as of December 31, 2012
$
152.6

 
$
127.1

 
$
25.5

Actual return on plan assets:
 

 
 

 
 

(a) Relating to assets still held at reporting date
15.4

 
15.1

 
0.3

(b) Relating to assets sold during period
0.3

 
0.3

 
—

Purchases, sales and /or settlements
0.5

 
0.3

 
0.2

Foreign currency exchange rate changes
3.0

 
3.2

 
(0.2
)
Ending balance as of December 31, 2013
$
171.8

 
$
146.0

 
$
25.8
Expected Benefit Payments
At December 31, 2014, the aggregate expected benefit payments for the Company’s defined benefit pension plans and ENPP are as follows (in millions):
2015
$
54.9

2016
50.8

2017
52.5

2018
52.5

2019
53.0

2020 through 2024
286.4

 
$
550.1
U.S. Based Pension Benefit Plans  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Allocation of Plan Assets
The weighted average asset allocation of the Company’s U.S. pension benefit plans as of December 31, 2014 and 2013 are as follows:
Asset Category
 
2014
 
2013
Large and small cap domestic equity securities
 
28
%
 
48
%
International equity securities
 
10
%
 
16
%
Domestic fixed income securities
 
42
%
 
16
%
Other investments
 
20
%
 
20
%
Total
 
100
%
 
100
%
Non-U.S. Pension Benefit Plans  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Allocation of Plan Assets
The weighted average asset allocation of the Company’s non-U.S. pension benefit plans as of December 31, 2014 and 2013 are as follows:
Asset Category
 
2014
 
2013
Equity securities
 
42
%
 
45
%
Fixed income securities
 
38
%
 
30
%
Other investments
 
20
%
 
25
%
Total
 
100
%
 
100
%
Postretirement Benefits  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Net Pension And Postretirement Cost
Net annual postretirement benefit costs for the years ended December 31, 2014, 2013 and 2012 are set forth below (in millions, except percentages):
Postretirement benefits
 
2014
 
2013
 
2012
Service cost
 
$
0.1

 
$
0.1

 
$
0.1

Interest cost
 
1.6

 
1.7

 
1.5

Amortization of prior service cost (credit)
 
0.2

 
0.2

 
(0.2
)
Amortization of net actuarial loss
 
0.1

 
0.5

 
0.4

Other
 
0.2

 
—

 
—

Net annual postretirement benefit cost
 
$
2.2

 
$
2.5

 
$
1.8

Weighted average discount rate
 
5.3
%
 
4.7
%
 
4.8
%
Expected Benefit Payments
At December 31, 2014, the aggregate expected benefit payments for the Company’s U.S. and Brazilian postretirement benefit plans are as follows (in millions):
2015
$
1.5

2016
1.6

2017
1.6

2018
1.7

2019
1.7

2020 through 2024
9.2

 
$
17.3