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Operations and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Schedule of Cash and Cash Equivalents [Table Text Block]

Cash and cash equivalents reported in the Consolidated Balance Sheets as of December 31, 2019, 2018 and 2017 and cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows for the years ended December 31, 2019, 2018 and 2017 are as follows (in millions):

	December 31, 2019				December 31, 2018				December 31, 2017
Cash(1)	$	412.3			$	290.5			$	317.0
Cash equivalents(2)	17.3				35.6				50.7
Restricted cash(3)	3.2				—				—
Total	$	432.8			$	326.1			$	367.7

____________________________________

(1) Consisted primarily of cash on hand and bank deposits.

(2) Consisted primarily of money market deposits, certificates of deposits and overnight investments. The Company considers all investments with an original maturity of three months or less to be cash equivalents.

(3) Consisted primarily of cash in escrow or held as guarantee to support specific requirements.

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, 2019		North America				South America				Europe/Middle East				Asia/Pacific/Africa				Consolidated
0 to 6 months		$	1,535.0			$	802.2			$	5,317.8			$	718.5			$	8,373.5			92.6	%
7 to 12 months		645.0				—				11.1				—				656.1				7.3	%
13 to 24 months		11.8				—				—				—				11.8				0.1	%
		$	2,191.8			$	802.2			$	5,328.9			$	718.5			$	9,041.4			100.0	%

Trade Allowances and Sales Incentive Discounts

Accounts and notes receivable allowances at December 31, 2019 and 2018 were as follows (in millions):

	2019				2018
Sales incentive discounts	$	25.7			$	24.2
Doubtful accounts	28.8				31.7
	$	54.5			$	55.9

Schedule of Inventory, Current

Inventories, net at December 31, 2019 and 2018 were as follows (in millions):

	2019				2018
Finished goods	$	780.1			$	660.4
Repair and replacement parts	611.5				587.3
Work in process	213.4				217.5
Raw materials	473.7				443.5
Inventories, net	$	2,078.7			$	1,908.7

Property, Plant and Equipment

Property, plant and equipment, net at December 31, 2019 and 2018 consisted of the following (in millions):

	2019				2018
Land	$	142.5			$	125.3
Buildings and improvements	808.1				769.1
Machinery and equipment	2,522.0				2,391.8
Furniture and fixtures	153.4				148.6
Gross property, plant and equipment	3,626.0				3,434.8
Accumulated depreciation and amortization	(2,209.7		)		(2,061.7		)
Property, plant and equipment, net	$	1,416.3			$	1,373.1

Schedule of Goodwill

Changes in the carrying amount of goodwill during the years ended December 31, 2019, 2018 and 2017 are summarized as follows (in millions):

	North America				South America				Europe/Middle East				Asia/Pacific/Africa				Consolidated
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
Impairment charge	—				—				(173.6		)		—				(173.6		)
Sale of a joint venture	(5.1		)		—				—				—				(5.1		)
Foreign currency translation	—				(4.5		)		(12.7		)		(1.3		)		(18.5		)
Balance as of December 31, 2019	$	606.0			$	112.2			$	463.3			$	116.8			$	1,298.3

Schedule of Acquired Finite-Lived Intangible Assets by Major Class

The acquired intangible assets have a weighted average useful life as follows:

Intangible Assets		Weighted-Average Useful Life
Patents and technology		12	years
Customer relationships		13	years
Trademarks and trade names		20	years
Land use rights		45	years

Changes in the carrying amount of acquired intangible assets during 2019 and 2018 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, 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
Sale of a joint venture	(1.3		)		(2.9		)		(1.9		)		—				(6.1		)
Impairment charge	(1.1		)		(0.8		)		(1.1		)		—				(3.0		)
Foreign currency translation	(1.7		)		(3.6		)		(1.7		)		(0.1		)		(7.1		)
Balance as of December 31, 2019	$	199.3			$	579.0			$	151.1			$	8.5			$	937.9

	Trademarks and Trade Names				Customer Relationships				Patents and Technology				Land Use Rights				Total
Accumulated amortization:
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
Amortization expense	11.0				40.1				9.9				0.1				61.1
Sale of a joint venture	(0.5		)		(1.2		)		(0.7		)		—				(2.4		)
Foreign currency translation	(0.6		)		(2.3		)		(1.2		)		—				(4.1		)
Balance as of December 31, 2019	$	83.3			$	347.4			$	88.7			$	3.1			$	522.5

	Trademarks and Trade Names
Indefinite-lived intangible assets:
Balance as of December 31, 2017	$	88.6
Foreign currency translation	(1.7		)
Balance as of December 31, 2018	86.9
Foreign currency translation	(0.6		)
Balance as of December 31, 2019	$	86.3

Schedule of Indefinite-lived Intangible Assets by Major Class

	Trademarks and Trade Names
Indefinite-lived intangible assets:
Balance as of December 31, 2017	$	88.6
Foreign currency translation	(1.7		)
Balance as of December 31, 2018	86.9
Foreign currency translation	(0.6		)
Balance as of December 31, 2019	$	86.3

Schedule of Accrued Liabilities

Accrued expenses at December 31, 2019 and 2018 consisted of the following (in millions):

	2019				2018
Reserve for volume discounts and sales incentives	$	580.4			$	537.7
Warranty reserves	331.9				308.6
Accrued employee compensation and benefits	290.8				286.2
Accrued taxes	170.3				137.8
Other	280.8				252.1
	$	1,654.2			$	1,522.4

Schedule of Product Warranty Liability

The warranty reserve activity for the years ended December 31, 2019, 2018 and 2017 consisted of the following (in millions):

	2019				2018				2017
Balance at beginning of the year	$	360.9			$	316.0			$	255.6
Acquisitions	—				—				5.1
Accruals for warranties issued during the year	234.1				230.5				215.9
Settlements made (in cash or in kind) during the year	(198.7		)		(174.7		)		(183.1		)
Foreign currency translation	(3.5		)		(10.9		)		22.5
Balance at the end of the year	$	392.8			$	360.9			$	316.0

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 2019, 2018 and 2017:

	Years Ended December 31,
	2019				2018				2017
Cost of goods sold	$	1.7			$	2.3			$	2.8
Selling, general and administrative expenses	40.0				44.3				35.6
Total stock compensation expense	$	41.7			$	46.6			$	38.4

Schedule of Components of Interest Expense, Net

Interest expense, net for the years ended December 31, 2019, 2018 and 2017 consisted of the following (in millions):

	2019				2018				2017
Interest expense	$	28.8			$	61.9			$	54.5
Interest income	(8.9		)		(8.1		)		(9.4		)
	$	19.9			$	53.8			$	45.1

Schedule of Earnings Per Share, Basic and Diluted

A reconciliation of net income attributable to AGCO Corporation and subsidiaries and weighted average common shares outstanding for purposes of calculating basic and diluted net income per share during the years ended December 31, 2019, 2018 and 2017 is as follows (in millions, except per share data):

	2019				2018				2017
Basic net income per share:
Net income attributable to AGCO Corporation and subsidiaries	$	125.2			$	285.5			$	186.4
Weighted average number of common shares outstanding	76.2				78.8				79.5
Basic net income per share attributable to AGCO Corporation and subsidiaries	$	1.64			$	3.62			$	2.34
Diluted net income per share:
Net income attributable to AGCO Corporation and subsidiaries	$	125.2			$	285.5			$	186.4
Weighted average number of common shares outstanding	76.2				78.8				79.5
Dilutive SSARs, performance share awards and restricted stock units	0.8				0.9				0.7
Weighted average number of common shares and common share equivalents outstanding for purposes of computing diluted net income per share	77.0				79.7				80.2
Diluted net income per share attributable to AGCO Corporation and subsidiaries	$	1.63			$	3.58			$	2.32

Schedule of Comprehensive Income (Loss)

The components of other comprehensive (loss) income and the related tax effects for the years ended December 31, 2019, 2018 and 2017 are as follows (in millions):

	AGCO Corporation and Subsidiaries												Noncontrolling Interests
	2019												2019
	Before-tax Amount				Income Taxes				After-tax Amount				After-tax Amount
Defined benefit pension plans	$	(13.4	)		$	(0.6	)		$	(14.0	)		$	—
Net loss on derivatives	(3.1		)		0.4				(2.7		)		—
Foreign currency translation adjustments	(23.1		)		—				(23.1		)		2.5
Total components of other comprehensive loss	$	(39.6	)		$	(0.2	)		$	(39.8	)		$	2.5

	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

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