Separate Financial Information of Guarantor Subsidiaries (Tables)

3 Months Ended

Mar. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidated Statements of Operations



Condensed Consolidated Statement of Operations
For the three months ended March 31, 2018
(in thousands)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Tennant Company
Net Sales	$	113,690		$	148,433		$	140,395		$	(129,671	)	$	272,847
Cost of Sales	77,231			123,125			90,245			(128,391		)	162,210
Gross Profit	36,459			25,308			50,150			(1,280		)	110,637

Operating Expense:
Research and Development Expense	6,107			204			1,685			—			7,996
Selling and Administrative Expense	29,088			19,717			43,464			—			92,269
Total Operating Expense	35,195			19,921			45,149			—			100,265
Profit from Operations	1,264			5,387			5,001			(1,280		)	10,372

Other Income (Expense):
Equity in Earnings of Affiliates	4,375			506			2,647			(7,528		)	—
Interest (Expense) Income, Net	(5,108		)	—			121			(9		)	(4,996		)
Intercompany Interest Income (Expense)	3,725			(1,422		)	(2,303		)	—			—
Net Foreign Currency Transaction Gains (Losses)	354			(1		)	(1,102		)	—			(749		)
Other (Expense) Income, Net	(233		)	(591		)	598			(24		)	(250		)
Total Other Income (Expense), Net	3,113			(1,508		)	(39		)	(7,561		)	(5,995		)

Profit (Loss) Before Income Taxes	4,377			3,879			4,962			(8,841		)	4,377
Income Tax Expense (Benefit)	1,077			899			1,589			(2,488		)	1,077
Net Earnings (Loss) Including Noncontrolling Interest	3,300			2,980			3,373			(6,353		)	3,300
Net Earnings Attributable to Noncontrolling Interest	26			—			26			(26		)	26
Net Earnings (Loss) Attributable to Tennant Company	$	3,274		$	2,980		$	3,347		$	(6,327	)	$	3,274



Condensed Consolidated Statement of Operations
For the three months ended March 31, 2017
(in thousands)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Tennant Company
Net Sales	$	105,705		$	139,080		$	68,834		$	(122,560	)	$	191,059
Cost of Sales	71,597			112,732			48,582			(121,588		)	111,323
Gross Profit	34,108			26,348			20,252			(972		)	79,736

Operating Expense:
Research and Development Expense	7,946			87			413			—			8,446
Selling and Administrative Expense	32,064			20,072			21,820			—			73,956
Total Operating Expense	40,010			20,159			22,233			—			82,402
(Loss) Profit from Operations	(5,902		)	6,189			(1,981		)	(972		)	(2,666		)

Other Income (Expense):
Equity in Earnings of Affiliates	1,650			329			—			(1,979		)	—
Interest (Expense) Income, Net	(764		)	—			54			—			(710		)
Intercompany Interest Income (Expense)	1,469			(1,428		)	(41		)	—			—
Net Foreign Currency Transaction (Losses) Gains	(837		)	2			(362		)	—			(1,197		)
Other (Expense) Income, Net	(157		)	(75		)	264			—			32
Total Other Income (Expense), Net	1,361			(1,172		)	(85		)	(1,979		)	(1,875		)

(Loss) Profit Before Income Taxes	(4,541		)	5,017			(2,066		)	(2,951		)	(4,541		)
Income Tax (Benefit) Expense	(584		)	1,571			(1,024		)	(547		)	(584		)
Net (Loss) Earnings	$	(3,957	)	$	3,446		$	(1,042	)	$	(2,404	)	$	(3,957	)

Condensed Consolidated Statements of Comprehensive Income



Condensed Consolidated Statement of Comprehensive Income
For the three months ended March 31, 2018
(in thousands)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Tennant Company
Net Earnings Including Noncontrolling Interest	$	3,300		$	2,980		$	3,373		$	(6,353	)	$	3,300
Other Comprehensive Income (Loss):
Foreign currency translation adjustments	8,381			(164		)	7,853			(7,689		)	8,381
Pension and retiree medical benefits	82			—			19			(19		)	82
Cash flow hedge	(2,715		)	—			—			—			(2,715		)
Income Taxes:
Foreign currency translation adjustments	(17		)	—			(16		)	16			(17		)
Pension and retiree medical benefits	(151		)	—			—			—			(151		)
Cash flow hedge	(501		)	—			—			—			(501		)
Total Other Comprehensive Income, net of tax	5,079			(164		)	7,856			(7,692		)	5,079

Total Comprehensive Income Including Noncontrolling Interest	8,379			2,816			11,229			(14,045		)	8,379
Comprehensive Income Attributable to Noncontrolling Interest	26			—			26			(26		)	26
Comprehensive Income Attributable to Tennant Company	$	8,353		$	2,816		$	11,203		$	(14,019	)	$	8,353



Condensed Consolidated Statement of Comprehensive Income
For the three months ended March 31, 2017
(in thousands)	Parent			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Total Tennant Company
Net (Loss) Earnings	$	(3,957	)	$	3,446	$	(1,042	)	$	(2,404	)	$	(3,957	)
Other Comprehensive Income (Loss):
Foreign currency translation adjustments	2,400			101		(20,697		)	20,596			2,400
Pension and retiree medical benefits	10			—		—			—			10
Cash flow hedge	(73		)	—		—			—			(73		)
Income Taxes:
Foreign currency translation adjustments	—			—		—			—			—
Pension and retiree medical benefits	(18		)	—		(14		)	14			(18		)
Cash flow hedge	27			—		—			—			27
Total Other Comprehensive Income (Loss), net of tax	2,346			101		(20,711		)	20,610			2,346
Comprehensive (Loss) Income	$	(1,611	)	$	3,547	$	(21,753	)	$	18,206		$	(1,611	)

Condensed Consolidated Balance Sheets



Condensed Consolidated Balance Sheet
As of March 31, 2018
(in thousands)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Tennant Company
ASSETS
Current Assets:
Cash and Cash Equivalents	$	14,767		$	2,078		$	37,156		$	—		$	54,001
Restricted Cash	—			—			645			—			645
Net Receivables	605			85,079			126,581			—			212,265
Intercompany Receivables	54,461			131,279			—			(185,740		)	—
Inventories	32,287			16,076			102,161			(10,234		)	140,290
Prepaid Expenses	11,781			275			9,481			—			21,537
Other Current Assets	3,864			404			1,674			—			5,942
Total Current Assets	117,765			235,191			277,698			(195,974		)	434,680
Property, Plant and Equipment	224,426			12,738			149,966			—			387,130
Accumulated Depreciation	(148,975		)	(6,502		)	(53,727		)	—			(209,204		)
Property, Plant and Equipment, Net	75,451			6,236			96,239			—			177,926
Deferred Income Taxes	2,178			3,233			9,421			—			14,832
Investment in Affiliates	408,509			11,562			22,260			(442,331		)	—
Intercompany Loans	314,905			—			3,690			(318,595		)	—
Goodwill	12,869			1,739			181,557			—			196,165
Intangible Assets, Net	2,974			2,862			166,461			—			172,297
Other Assets	9,083			(427		)	11,346			—			20,002
Total Assets	$	943,734		$	260,396		$	768,672		$	(956,900	)	$	1,015,902
LIABILITIES AND TOTAL EQUITY
Current Liabilities:
Current Portion of Long-Term Debt	$	29,460		$	—		$	1,442		$	—		$	30,902
Accounts Payable	42,583			4,029			56,090			—			102,702
Intercompany Payables	131,279			1,360			53,101			(185,740		)	—
Employee Compensation and Benefits	8,976			8,194			17,504			—			34,674
Income Taxes Payable	341			—			2,459			—			2,800
Other Current Liabilities	27,447			10,780			32,066			—			70,293
Total Current Liabilities	240,086			24,363			162,662			(185,740		)	241,371
Long-Term Liabilities:
Long-Term Debt	340,447			—			1,973			—			342,420
Intercompany Loans	3,690			128,000			186,905			(318,595		)	—
Employee-Related Benefits	12,576			1,869			8,949			—			23,394
Deferred Income Taxes	—			—			53,412			—			53,412
Other Liabilities	39,564			2,669			5,701			—			47,934
Total Long-Term Liabilities	396,277			132,538			256,940			(318,595		)	467,160
Total Liabilities	636,363			156,901			419,602			(504,335		)	708,531
Equity:
Common Stock	6,717			—			11,131			(11,131		)	6,717
Additional Paid-In Capital	18,295			77,551			384,460			(462,011		)	18,295
Retained Earnings	297,717			26,777			(17,872		)	(8,905		)	297,717
Accumulated Other Comprehensive Loss	(17,244		)	(833		)	(30,535		)	31,368			(17,244		)
Total Tennant Company Shareholders' Equity	305,485			103,495			347,184			(450,679		)	305,485
Noncontrolling Interest	1,886			—			1,886			(1,886		)	1,886
Total Equity	307,371			103,495			349,070			(452,565		)	307,371
Total Liabilities and Total Equity	$	943,734		$	260,396		$	768,672		$	(956,900	)	$	1,015,902



Condensed Consolidated Balance Sheet
As of December 31, 2017
(in thousands)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Tennant Company
ASSETS
Current Assets:
Cash and Cash Equivalents	$	18,469		$	507		$	39,422		$	—		$	58,398
Restricted Cash	—			—			653			—			653
Net Receivables	683			88,629			120,204			—			209,516
Intercompany Receivables	53,444			133,778			—			(187,222		)	—
Inventories	29,450			12,695			94,542			(8,993		)	127,694
Prepaid Expenses	8,774			1,172			9,405			—			19,351
Other Current Assets	4,030			—			3,473			—			7,503
Total Current Assets	114,850			236,781			267,699			(196,215		)	423,115
Property, Plant and Equipment	225,064			12,155			145,549			—			382,768
Accumulated Depreciation	(146,320		)	(6,333		)	(50,097		)	—			(202,750		)
Property, Plant and Equipment, Net	78,744			5,822			95,452			—			180,018
Deferred Income Taxes	1,308			2,669			7,157			—			11,134
Investment in Affiliates	392,486			11,273			20,811			(424,570		)	—
Intercompany Loans	304,822			—			4,983			(309,805		)	—
Goodwill	12,869			1,739			171,436			—			186,044
Intangible Assets, Net	2,105			2,898			167,344			—			172,347
Other Assets	10,363			—			10,956			—			21,319
Total Assets	$	917,547		$	261,182		$	745,838		$	(930,590	)	$	993,977
LIABILITIES AND TOTAL EQUITY
Current Liabilities:
Current Portion of Long-Term Debt	$	29,413		$	—		$	1,470		$	—		$	30,883
Accounts Payable	39,927			3,018			53,137			—			96,082
Intercompany Payables	133,778			1,963			51,481			(187,222		)	—
Employee Compensation and Benefits	8,311			10,355			18,591			—			37,257
Income Taxes Payable	366			—			2,472			—			2,838
Other Current Liabilities	20,183			15,760			33,504			—			69,447
Total Current Liabilities	231,978			31,096			160,655			(187,222		)	236,507
Long-Term Liabilities:
Long-Term Debt	344,147			—			1,809			—			345,956
Intercompany Loans	—			128,000			181,805			(309,805		)	—
Employee-Related Benefits	11,160			3,992			8,715			—			23,867
Deferred Income Taxes	—			—			53,225			—			53,225
Other Liabilities	31,788			2,483			1,677			—			35,948
Total Long-Term Liabilities	387,095			134,475			247,231			(309,805		)	458,996
Total Liabilities	619,073			165,571			407,886			(497,027		)	695,503
Equity:
Common Stock	6,705			—			11,131			(11,131		)	6,705
Additional Paid-In Capital	15,089			72,483			384,460			(456,943		)	15,089
Retained Earnings	297,032			23,797			(21,219		)	(2,578		)	297,032
Accumulated Other Comprehensive Loss	(22,323		)	(669		)	(38,391		)	39,060			(22,323		)
Total Tennant Company Shareholders' Equity	296,503			95,611			335,981			(431,592		)	296,503
Noncontrolling Interest	1,971			—			1,971			(1,971		)	1,971
Total Equity	298,474			95,611			337,952			(433,563		)	298,474
Total Liabilities and Total Equity	$	917,547		$	261,182		$	745,838		$	(930,590	)	$	993,977

Condensed Consolidated Statement Cash Flows



Condensed Consolidated Statement of Cash Flows
For the three months ended March 31, 2018
(in thousands)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Tennant Company
OPERATING ACTIVITIES
Net Cash Provided by (Used in) Operating Activities	$	5,815		$	1,800		$	(2,076	)	$	—		$	5,539
INVESTING ACTIVITIES
Purchases of Property, Plant and Equipment	(342		)	(229		)	(2,909		)	—			(3,480		)
Proceeds from Disposals of Property, Plant and Equipment	11			—			5			—			16
Proceeds from Principal Payments Received on Long-Term Note Receivable	—			—			167			—			167
Purchase of Intangible Asset	(1,000		)	—			—			—			(1,000		)
Loan (Payments) Borrowings from Subsidiaries	(1,294		)	—			—			1,294			—
Net Cash Used in Investing Activities	(2,625		)	(229		)	(2,737		)	1,294			(4,297		)
FINANCING ACTIVITIES
Loan Borrowings (Payments) from Parent	—			—			1,294			(1,294		)	—
Payments of Long-Term Debt	(4,000		)	—			(37		)	—			(4,037		)
Change in Capital Lease Obligations	—			—			81			—			81
Proceeds from Issuances of Common Stock	794			—			—			—			794
Dividends Paid	(3,758		)	—			—			—			(3,758		)
Net Cash (Used in) Provided by Financing Activities	(6,964		)	—			1,338			(1,294		)	(6,920		)
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash	72			—			1,201			—			1,273
Net (Decrease) Increase in Cash, Cash Equivalents and Restricted Cash	(3,702		)	1,571			(2,274		)	—			(4,405		)
Cash, Cash Equivalents and Restricted Cash at Beginning of Period	18,469			507			40,075			—			59,051
Cash, Cash Equivalents and Restricted Cash at End of Period	$	14,767		$	2,078		$	37,801		$	—		$	54,646



Condensed Consolidated Statement of Cash Flows
For the three months ended March 31, 2017
(in thousands)	Parent			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Total Tennant Company
OPERATING ACTIVITIES
Net Cash (Used in) Provided by Operating Activities	$	(14,063	)	$	438	$	2,516		$	—		$	(11,109	)
INVESTING ACTIVITIES
Purchases of Property, Plant and Equipment	(1,188		)	—		(3,485		)	—			(4,673		)
Proceeds from Disposals of Property, Plant and Equipment	6			—		47			—			53
Issuance of Long-Term Note Receivable	—			—		(1,500		)	—			(1,500		)
Acquisition of Business, Net of Cash Acquired	(304		)	—		—			—			(304		)
Purchase of Intangible Asset	(2,500		)	—		—			—			(2,500		)
Change in Investments in Subsidiaries	(3,500		)	—		—			3,500			—
Net Cash Used in Investing Activities	(7,486		)	—		(4,938		)	3,500			(8,924		)
FINANCING ACTIVITIES
Change in Subsidiary Equity	—			—		3,500			(3,500		)	—
Proceeds from Issuance of Long-Term Debt	20,000			—		—			—			20,000
Payments of Long-Term Debt	(11,143		)	—		(8		)	—			(11,151		)
Proceeds from Issuance of Common Stock	1,655			—		—			—			1,655
Dividends Paid	(3,722		)	—		—			—			(3,722		)
Net Cash Provided by Financing Activities	6,790			—		3,492			(3,500		)	6,782
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash	(102		)	—		432			—			330
Net (Decrease) Increase in Cash, Cash Equivalents and Restricted Cash	(14,861		)	438		1,502			—			(12,921		)
Cash, Cash Equivalents and Restricted Cash at Beginning of Period	38,484			226		19,840			—			58,550
Cash, Cash Equivalents and Restricted Cash at End of Period	$	23,623		$	664	$	21,342		$	—		$	45,629