XML 43 R26.htm IDEA: XBRL DOCUMENT v3.10.0.1
Operations and Summary of Significant Accounting Policies (Tables) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Accounting Policies [Abstract]    
Accounts Receivable Outstanding as a Percent of Net Sales
The following summarizes by geographic region, as a percentage of our consolidated net sales, amounts with maximum interest-free periods as presented below (in millions):
Year Ended December 31, 2018
North America
 
South America
 
Europe/Middle East
 
Asia/Pacific/Africa
 
Consolidated
0 to 6 months
$
1,639.6

 
$
959.0

 
$
5,368.0

 
$
827.8

 
$
8,794.4

 
94.0
%
7 to 12 months
523.1

 
—

 
17.1

 
—

 
540.2

 
5.8
%
13 to 24 months
17.4

 
—

 
—

 
—

 
17.4

 
0.2
%
 
$
2,180.1

 
$
959.0

 
$
5,385.1

 
$
827.8

 
$
9,352.0

 
100.0
%
  
Trade Allowances and Sales Incentive Discounts
Accounts and notes receivable allowances at December 31, 2018 and 2017 were as follows (in millions):
 
2018
 
2017
Sales incentive discounts
$
24.2

 
$
33.1

Doubtful accounts
31.7

 
38.7

 
$
55.9

 
$
71.8

  
Schedule of Inventory, Current
Inventories, net at December 31, 2018 and 2017 were as follows (in millions):
 
2018
 
2017
Finished goods
$
660.4

 
$
684.1

Repair and replacement parts
587.3

 
605.9

Work in process
217.5

 
178.7

Raw materials
443.5

 
404.2

Inventories, net
$
1,908.7

 
$
1,872.9

  
Property, Plant and Equipment
Property, plant and equipment, net at December 31, 2018 and 2017 consisted of the following (in millions):
 
2018
 
2017
Land
$
125.3

 
$
130.6

Buildings and improvements
769.0

 
792.0

Machinery and equipment
2,374.7

 
2,391.6

Furniture and fixtures
148.6

 
147.6

Gross property, plant and equipment
3,417.6

 
3,461.8

Accumulated depreciation and amortization
(2,044.5
)
 
(1,976.5
)
Property, plant and equipment, net
$
1,373.1

 
$
1,485.3

  
Schedule of Goodwill
Changes in the carrying amount of goodwill during the years ended December 31, 2018, 2017 and 2016 are summarized as follows (in millions):
 
North America
 
South America
 
Europe/Middle East
 
Asia/Pacific/Africa
 
Consolidated
Balance as of December 31, 2015
$
518.7

 
$
114.4

 
$
411.2

 
$
70.2

 
$
1,114.5

Acquisitions
25.2

 
—

 
196.4

 
47.6

 
269.2

Foreign currency translation
—

 
24.4

 
(25.7
)
 
(6.0
)
 
(7.3
)
Balance as of December 31, 2016
543.9

 
138.8

 
581.9

 
111.8

 
1,376.4

Acquisitions
67.2

 
—

 
17.4

 
—

 
84.6

Foreign currency translation
—

 
(2.4
)
 
71.7

 
11.1

 
80.4

Balance as of December 31, 2017
611.1

 
136.4

 
671.0

 
122.9

 
1,541.4

Adjustments
—

 
—

 
8.4

 
—

 
8.4

Foreign currency translation
—

 
(19.7
)
 
(29.8
)
 
(4.8
)
 
(54.3
)
Balance as of December 31, 2018
$
611.1

 
$
116.7

 
$
649.6

 
$
118.1

 
$
1,495.5

  
Schedule of Acquired Finite-Lived Intangible Assets by Major Class
The acquired intangible assets have a weighted average useful life as follows:
Intangible Asset
 
Weighted-Average
Useful Life
Patents and technology
 
12
years
Customer relationships
 
13
years
Trademarks and trade names
 
19
years
Land use rights
 
45
years
Changes in the carrying amount of acquired intangible assets during 2018 and 2017 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, 2016
$
179.2

 
$
558.0

 
$
122.1

 
$
8.5

 
$
867.8

Acquisitions
19.5

 
24.4

 
28.1

 
—

 
72.0

Foreign currency translation
9.7

 
18.0

 
9.8

 
0.6

 
38.1

Balance as of December 31, 2017
208.4

 
600.4

 
160.0

 
9.1

 
977.9

Foreign currency translation
(5.0
)
 
(14.1
)
 
(4.2
)
 
(0.5
)
 
(23.8
)
Balance as of December 31, 2018
$
203.4

 
$
586.3

 
$
155.8

 
$
8.6

 
$
954.1


 
Trademarks and
Trade Names
 
Customer
Relationships
 
Patents and
Technology
 
Land Use Rights
 
Total
Accumulated amortization:
 

 
 

 
 

 
 
 
 

Balance as of December 31, 2016
$
49.7

 
$
233.0

 
$
59.5

 
$
2.7

 
$
344.9

Amortization expense
10.3

 
38.5

 
8.0

 
0.2

 
57.0

Foreign currency translation
1.4

 
8.2

 
5.9

 
0.1

 
15.6

Balance as of December 31, 2017
61.4

 
279.7

 
73.4

 
3.0

 
417.5

Amortization expense
13.7

 
40.7

 
10.1

 
0.2

 
64.7

Foreign currency translation
(1.7
)
 
(9.6
)
 
(2.8
)
 
(0.2
)
 
(14.3
)
Balance as of December 31, 2018
$
73.4

 
$
310.8

 
$
80.7

 
$
3.0

 
$
467.9


  
Schedule of Indefinite-lived Intangible Assets by Major Class
 
Trademarks and
Trade Names
Indefinite-lived intangible assets:
 

Balance as of December 31, 2016
$
84.4

Foreign currency translation
4.2

Balance as of December 31, 2017
88.6

Foreign currency translation
(1.7
)
Balance as of December 31, 2018
$
86.9

  
Schedule of Accrued Liabilities
Accrued expenses at December 31, 2018 and 2017 consisted of the following (in millions):
 
2018
 
2017
Reserve for volume discounts and sales incentives
$
537.7

 
$
489.1

Warranty reserves
308.6

 
273.6

Accrued employee compensation and benefits
286.2

 
283.3

Accrued taxes
137.8

 
135.4

Other
252.1

 
226.5

 
$
1,522.4

 
$
1,407.9

  
Schedule of Product Warranty Liability
The warranty reserve activity for the years ended December 31, 2018, 2017 and 2016 consisted of the following (in millions):
 
2018
 
2017
 
2016
Balance at beginning of the year
$
316.0

 
$
255.6

 
$
230.3

Acquisitions
—

 
5.1

 
3.7

Accruals for warranties issued during the year
230.5

 
215.9

 
214.6

Settlements made (in cash or in kind) during the year
(174.7
)
 
(183.1
)
 
(188.7
)
Foreign currency translation
(10.9
)
 
22.5

 
(4.3
)
Balance at the end of the year
$
360.9

 
$
316.0

 
$
255.6



  
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs
Stock compensation expense was recorded as follows (in millions). Refer to Note 10 for additional information regarding the Company’s stock incentive plans during 2018, 2017 and 2016:
 
Years Ended December 31,
 
2018
 
2017
 
2016
Cost of goods sold
$
2.3

 
$
2.8

 
$
1.5

Selling, general and administrative expenses
44.3

 
35.6

 
16.9

Total stock compensation expense
$
46.6

 
$
38.4

 
$
18.4

  
Schedule of Components of Interest Expense, Net
Interest expense, net for the years ended December 31, 2018, 2017 and 2016 consisted of the following (in millions):
 
2018
 
2017
 
2016
Interest expense
$
61.9

 
$
54.5

 
$
65.4

Interest income
(8.1
)
 
(9.4
)
 
(13.3
)
 
$
53.8

 
$
45.1

 
$
52.1

  
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, 2018, 2017 and 2016 is as follows (in millions, except per share data):
 
2018
 
2017
 
2016
Basic net income per share:
 

 
 

 
 

Net income attributable to AGCO Corporation and subsidiaries
$
285.5

 
$
186.4

 
$
160.1

Weighted average number of common shares outstanding
78.8

 
79.5

 
81.4

Basic net income per share attributable to AGCO Corporation and subsidiaries
$
3.62

 
$
2.34

 
$
1.97

Diluted net income per share:
 

 
 

 
 

Net income attributable to AGCO Corporation and subsidiaries
$
285.5

 
$
186.4

 
$
160.1

Weighted average number of common shares outstanding
78.8

 
79.5

 
81.4

Dilutive SSARs, performance share awards and restricted stock units
0.9

 
0.7

 
0.3

Weighted average number of common shares and common share equivalents outstanding for purposes of computing diluted net income per share
79.7

 
80.2

 
81.7

Diluted net income per share attributable to AGCO Corporation and subsidiaries
$
3.58

 
$
2.32

 
$
1.96

  
Schedule of Comprehensive Income (Loss)
The components of other comprehensive (loss) income and the related tax effects for the years ended December 31, 2018, 2017 and 2016 are as follows (in millions):
 
AGCO Corporation and Subsidiaries
 
Noncontrolling Interests
 
2018
 
2018
 
Before-tax
Amount
 
Income
Taxes
 
After-tax
Amount
 
After-tax
Amount
Defined benefit pension plans
$
0.8

 
$
1.9

 
$
2.7

 
$
—

Net gain on derivatives
7.6

 
(1.5
)
 
6.1

 
—

Foreign currency translation adjustments
(202.6
)
 
—

 
(202.6
)
 
(4.2
)
Total components of other comprehensive loss
$
(194.2
)
 
$
0.4

 
$
(193.8
)
 
$
(4.2
)

 
AGCO Corporation and Subsidiaries
 
Noncontrolling Interests
 
2017
 
2017
 
Before-tax
Amount
 
Income
Taxes
 
After-tax
Amount
 
After-tax
Amount
Defined benefit pension plans
$
24.2

 
$
(4.8
)
 
$
19.4

 
$
—

Net gain on derivatives
4.1

 
(0.1
)
 
4.0

 
—

Foreign currency translation adjustments
56.6

 
—

 
56.6

 
1.2

Total components of other comprehensive income
$
84.9

 
$
(4.9
)
 
$
80.0

 
$
1.2


 
AGCO Corporation and Subsidiaries
 
Noncontrolling Interests
 
2016
 
2016
 
Before-tax
Amount
 
Income
Taxes
 
After-tax
Amount
 
After-tax
Amount
Defined benefit pension plans
$
(68.2
)
 
$
12.7

 
$
(55.5
)
 
$
—

Net loss on derivatives
(6.8
)
 
0.1

 
(6.7
)
 
—

Foreign currency translation adjustments
80.8

 
—

 
80.8

 
1.6

Total components of other comprehensive income
$
5.8

 
$
12.8

 
$
18.6

 
$
1.6

  
Schedule of New Accounting Pronouncements and Changes in Accounting Principles
The following table summarizes the impact of adopting ASU 2014-09 on the Company’ s Consolidated Balance Sheet as of December 31, 2018 (in millions):
 
 
As Reported
 
Balances Without Adoption of ASU 2014-09
 
Increase (Decrease) Due to Adoption
Assets
 
 
 
 
 
 
Accounts and notes receivable, net
 
$
880.3

 
$
880.1

 
$
0.2

Other current assets
 
422.3

 
410.9

 
11.4

Total current assets
 
3,537.4

 
3,525.8

 
11.6

Other assets
 
142.4

 
141.6

 
0.8

Total assets
 
7,626.4

 
7,614.0

 
12.4

 
 
 
 
 
 
 
Liabilities and Stockholders’ Equity
 
 
 
 
 
 
Accrued expenses
 
$
1,522.4

 
$
1,508.3

 
$
14.1

Total current liabilities
 
2,766.7

 
2,752.6

 
14.1

Other noncurrent liabilities
 
251.4

 
249.1

 
2.3

Total liabilities
 
4,632.9

 
4,616.5

 
16.4

Retained earnings
 
4,477.3

 
4,481.3

 
(4.0
)
Total stockholder’s equity
 
2,993.5

 
2,997.5

 
(4.0
)
Total liabilities and stockholder’s equity
 
7,626.4

 
7,614.0

 
12.4

  
Total current assets $ 3,537.4 $ 3,627.7
Other current assets 422.3 367.7
Accounts, Notes, Loans and Financing Receivable, Net, Current $ 880.3 $ 1,019.4