Investments in Affiliates

12 Months Ended

Dec. 31, 2022

Equity Method Investments and Joint Ventures [Abstract]

Investments in affiliates as of December 31, 2022 and 2021 were as follows (in millions):


	2022		2021
Finance joint ventures	$	390.2	$	359.2
Manufacturing joint ventures	29.9		31.0
Other affiliates	16.8		23.3
	$	436.9	$	413.5

The Company’s finance joint ventures provide retail financing and wholesale financing to its dealers. The majority of the assets of the Company’s finance joint ventures represent finance receivables. The majority of the liabilities represent notes payable and accrued interest. Under the various joint venture agreements, Rabobank or its affiliates provide financing to the joint venture companies. AGCO has a 49% interest in the Company’s finance joint ventures (Note 14).

The Company’s manufacturing joint ventures consist of Groupement International De Mecanique Agricole SA (“GIMA”) (a joint venture with a third-party manufacturer to purchase, design and manufacture components for agricultural equipment in France) and a joint venture with a third-party manufacturer to manufacture protein production equipment in China. The other joint ventures represent investments in farm equipment manufacturers, an electronic and software system manufacturer, precision agriculture technology providers, distributors and licensees.

The Company’s equity in net earnings of affiliates for the years ended December 31, 2022, 2021 and 2020 were as follows (in millions):


	2022		2021		2020
Finance joint ventures	$	63.0	$	64.4	$	45.0
Manufacturing and other joint ventures	1.1		1.2		0.5
	$	64.1	$	65.6	$	45.5

Summarized combined financial information of the Company’s finance joint ventures as of December 31, 2022 and 2021 and for the years ended December 31, 2022, 2021 and 2020 were as follows (in millions):


	As of December 31,
	2022		2021
Total assets	$	8,359.1	$	7,863.6
Total liabilities	7,562.8		7,130.5
Partners’ equity	796.3		733.1


	For the Years Ended December 31,
	2022		2021		2020
Revenues	$	454.6	$	411.1	$	402.2
Costs	274.9		228.1		274.0
Income before income taxes	$	179.7	$	183.0	$	128.2

At December 31, 2022 and 2021, the Company’s receivables from affiliates were approximately $60.8 million and $55.1 million, respectively. The receivables from affiliates are reflected within “Accounts and notes receivable, net” within the Company’s Consolidated Balance Sheets.

The portion of the Company’s retained earnings balance that represents undistributed retained earnings of equity method investees was approximately $401.9 million and $365.6 million as of December 31, 2022 and 2021, respectively. The Company received dividends from certain finance joint ventures of approximately $27.0 million and $84.4 million during 2022 and 2021, respectively. Approximately $5.7 million and $22.7 million of these dividends were a return of investment in excess of earnings related to a certain finance joint venture during 2022 and 2021, respectively, and were included within “Sale of, distributions from (investments in) unconsolidated affiliates, net” within the Company’s Consolidated Statements of Cash Flows. In addition, during the year ended December 31, 2022, the Company recorded a write-down of the investment in its Russian finance joint venture of approximately $4.8 million, reflected within “Equity in net earnings of affiliates” in the Consolidated Statements of Operations. The Russian finance joint venture was sold during the three months ended December 31, 2022.