(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | |||||||
(Zip Code) | ||||||||
(Address of Principal Executive Offices) |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||
☒ | Accelerated Filer | ☐ | |||||||||||||||||||||
Non-Accelerated Filer | ☐ | Smaller Reporting Company | |||||||||||||||||||||
Emerging Growth Company |
Condensed Consolidated Statements of Equity for the Three Months Ended March 28, 2020 and March 30, 2019 (Unaudited) | |||||
Three months ended | |||||||||||
March 28, 2020 | March 30, 2019 | ||||||||||
Revenues | $ | $ | |||||||||
Cost of products sold | |||||||||||
Gross profit | |||||||||||
Selling, general and administrative | |||||||||||
Intangible amortization | |||||||||||
Asset impairment charges | |||||||||||
Restructuring and other related charges | |||||||||||
Operating income | |||||||||||
Other income (expense), net | ( | ||||||||||
Interest expense, net | ( | ( | |||||||||
Income (loss) from continuing operations before income taxes | ( | ||||||||||
Income tax benefit (provision) | ( | ||||||||||
Income (loss) from continuing operations | ( | ||||||||||
Income (loss) from discontinued operations, net of tax | ( | ||||||||||
Net income (loss) | ( | ||||||||||
Less: Net income attributable to noncontrolling interests | |||||||||||
Net income (loss) attributable to SPX FLOW, Inc. | $ | ( | $ | ||||||||
Amounts attributable to SPX FLOW, Inc. common shareholders: | |||||||||||
Income (loss) from continuing operations, net of tax | $ | ( | $ | ||||||||
Income (loss) from discontinued operations, net of tax | ( | ||||||||||
Net income (loss) attributable to SPX FLOW, Inc. | $ | ( | $ | ||||||||
Basic income (loss) per share of common stock: | |||||||||||
Income (loss) per share from continuing operations | $ | ( | $ | ||||||||
Income (loss) per share from discontinued operations | ( | ||||||||||
Net income (loss) per share attributable to SPX FLOW, Inc. | ( | ||||||||||
Diluted income (loss) per share of common stock: | |||||||||||
Income (loss) per share from continuing operations | $ | ( | $ | ||||||||
Income (loss) per share from discontinued operations | ( | ||||||||||
Net income (loss) per share attributable to SPX FLOW, Inc. | ( | ||||||||||
Weighted average number of common shares outstanding - basic | |||||||||||
Weighted average number of common shares outstanding - diluted |
Three months ended | |||||||||||
March 28, 2020 | March 30, 2019 | ||||||||||
Net income (loss) | $ | ( | $ | ||||||||
Other comprehensive income (loss), net: | |||||||||||
Net unrealized gains (losses) on qualifying cash flow hedges, net of tax benefit (provision) of $ | ( | ||||||||||
Foreign currency translation adjustments | ( | ( | |||||||||
Other comprehensive loss, net | ( | ( | |||||||||
Total comprehensive income (loss) | ( | ||||||||||
Less: Total comprehensive income (loss) attributable to noncontrolling interests | ( | ||||||||||
Total comprehensive income (loss) attributable to SPX FLOW, Inc. | $ | ( | $ |
March 28, 2020 | December 31, 2019 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and equivalents | $ | $ | |||||||||
Accounts receivable, net | |||||||||||
Contract assets | |||||||||||
Inventories, net | |||||||||||
Other current assets | |||||||||||
Assets of discontinued operations - current | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment: | |||||||||||
Land | |||||||||||
Buildings and leasehold improvements | |||||||||||
Machinery and equipment | |||||||||||
Accumulated depreciation | ( | ( | |||||||||
Property, plant and equipment, net | |||||||||||
Goodwill | |||||||||||
Intangibles, net | |||||||||||
Other assets | |||||||||||
TOTAL ASSETS | $ | $ | |||||||||
LIABILITIES, MEZZANINE EQUITY AND EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Contract liabilities | |||||||||||
Accrued expenses | |||||||||||
Income taxes payable | |||||||||||
Short-term debt | |||||||||||
Current maturities of long-term debt | |||||||||||
Liabilities of discontinued operations - current | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Deferred and other income taxes | |||||||||||
Other long-term liabilities | |||||||||||
Total long-term liabilities | |||||||||||
Commitments and contingent liabilities (Note 14) | |||||||||||
Mezzanine equity | |||||||||||
Equity: | |||||||||||
SPX FLOW, Inc. shareholders’ equity: | |||||||||||
Preferred stock, | |||||||||||
Common stock, par value $ | |||||||||||
Paid-in capital | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Common stock in treasury ( | ( | ( | |||||||||
Total SPX FLOW, Inc. shareholders' equity | |||||||||||
Noncontrolling interests | |||||||||||
Total equity | |||||||||||
TOTAL LIABILITIES, MEZZANINE EQUITY AND EQUITY | $ | $ |
Three months ended March 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Common Stock in Treasury | Total SPX FLOW, Inc. Shareholders' Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||
Shares Outstanding | Par | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | ( | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net | — | — | — | — | ( | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock and restricted stock unit vesting, net of tax withholdings | — | — | — | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||
Dividends attributable to noncontrolling interests | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Balance at March 28, 2020 | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | $ |
Three months ended March 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Common Stock in Treasury | Total SPX FLOW, Inc. Shareholders' Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||
Shares Outstanding | Par | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Adoption of lease accounting standard | — | — | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net | — | — | — | — | ( | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock and restricted stock unit vesting, net of tax withholdings | — | — | — | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||
Balance at March 30, 2019 | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | $ |
Three months ended | |||||||||||
March 28, 2020 | March 30, 2019 | ||||||||||
Cash flows from (used in) operating activities: | |||||||||||
Net income (loss) | $ | ( | $ | ||||||||
Less: Income (loss) from discontinued operations, net of tax | ( | ||||||||||
Income (loss) from continuing operations | ( | ||||||||||
Adjustments to reconcile income (loss) from continuing operations to net cash from (used in) operating activities: | |||||||||||
Restructuring and other related charges | |||||||||||
Asset impairment charges | |||||||||||
Deferred income taxes | |||||||||||
Depreciation and amortization | |||||||||||
Stock-based compensation | |||||||||||
Pension and other employee benefits | |||||||||||
Loss on asset sales and other, net | |||||||||||
Gain on change in fair value of investment in equity security | ( | ||||||||||
Changes in operating assets and liabilities, net of effects from discontinued operations: | |||||||||||
Accounts receivable and other assets | |||||||||||
Contract assets and liabilities, net | ( | ( | |||||||||
Inventories | ( | ( | |||||||||
Accounts payable, accrued expenses and other | ( | ( | |||||||||
Cash spending on restructuring actions | ( | ( | |||||||||
Net cash from (used in) continuing operations | ( | ||||||||||
Net cash from (used in) discontinued operations | ( | ||||||||||
Net cash from (used in) operating activities | ( | ||||||||||
Cash flows used in investing activity - | |||||||||||
Capital expenditures | ( | ( | |||||||||
Net cash used in continuing operations | ( | ( | |||||||||
Net cash used in discontinued operations | ( | ( | |||||||||
Net cash used in investing activity | ( | ( | |||||||||
Cash flows used in financing activities: | |||||||||||
Borrowings under former senior credit facilities | |||||||||||
Repayments of former senior credit facilities | ( | ||||||||||
Borrowings under former trade receivables financing arrangement | |||||||||||
Repayments of former trade receivables financing arrangement | ( | ||||||||||
Repayments of purchase card program, net | ( | ( | |||||||||
Repayments of other financing arrangements | ( | ( | |||||||||
Minimum withholdings paid on behalf of employees for net share settlements, net | ( | ( | |||||||||
Dividends paid to noncontrolling interests in subsidiary | ( | ||||||||||
Net cash used in continuing operations | ( | ( | |||||||||
Net cash used in discontinued operations | ( | ( | |||||||||
Net cash used in financing activities | ( | ( | |||||||||
Change in cash, cash equivalents and restricted cash due to changes in foreign currency exchange rates | ( | ( | |||||||||
Net change in cash, cash equivalents and restricted cash | ( | ( | |||||||||
Consolidated cash, cash equivalents and restricted cash, beginning of period | |||||||||||
Consolidated cash, cash equivalents and restricted cash, end of period | $ | $ | |||||||||
March 28, 2020 | March 30, 2019 | ||||||||||
Reconciliation of cash, cash equivalents and restricted cash from the condensed consolidated balance sheets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Cash and cash equivalents included in assets of discontinued operations | |||||||||||
Restricted cash included in other current assets | |||||||||||
Restricted cash included in assets of discontinued operations | |||||||||||
Consolidated cash, cash equivalents and restricted cash | $ | $ |
Three months ended | |||||||||||
March 28, 2020 | March 30, 2019 | ||||||||||
Revenues | $ | $ | |||||||||
Cost of products sold(1) | |||||||||||
Gross profit | |||||||||||
Selling, general and administrative(1) | |||||||||||
Intangible amortization(1) | |||||||||||
Loss on Disposal Group(2) | |||||||||||
Restructuring and other related charges | |||||||||||
Operating income (loss) | ( | ||||||||||
Other expense, net | ( | ( | |||||||||
Interest expense, net(3) | ( | ( | |||||||||
Income (loss) from discontinued operations before income taxes | ( | ||||||||||
Income tax benefit(4) | |||||||||||
Income (loss) from discontinued operations, net of tax | ( | ||||||||||
Less: Income (loss) attributable to noncontrolling interests | ( | ||||||||||
Income (loss) from discontinued operations, net of tax and noncontrolling interests | $ | ( | $ |
March 28, 2020 | December 31, 2019 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and equivalents | $ | $ | |||||||||
Accounts receivable, net | |||||||||||
Contract assets | |||||||||||
Inventories, net | |||||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment, net | |||||||||||
Goodwill | |||||||||||
Intangibles, net | |||||||||||
Other assets | |||||||||||
Total long-term assets(1) | |||||||||||
Total assets, before valuation allowance | |||||||||||
Less: valuation allowance(2) | ( | ( | |||||||||
TOTAL ASSETS, net of valuation allowance(1) | $ | $ | |||||||||
LIABILITIES | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Contract liabilities | |||||||||||
Accrued expenses | |||||||||||
Income taxes payable | |||||||||||
Current maturities of long-term debt | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Deferred and other income taxes | |||||||||||
Other long-term liabilities | |||||||||||
Total long-term liabilities(1) | |||||||||||
TOTAL LIABILITIES(1) | $ | $ |
Three months ended | |||||||||||
March 28, 2020 | March 30, 2019 | ||||||||||
Loss on Disposal Group(1) | $ | $ | |||||||||
Depreciation and amortization(2) | |||||||||||
Capital expenditures | ( | ( |
Three months ended | |||||||||||
March 28, 2020 | March 30, 2019 | ||||||||||
Revenues: | |||||||||||
Food and Beverage | $ | $ | |||||||||
Industrial | |||||||||||
Total revenues | $ | $ | |||||||||
Income: | |||||||||||
Food and Beverage | $ | $ | |||||||||
Industrial | |||||||||||
Total income for reportable segments | |||||||||||
Corporate expense(1) | |||||||||||
Pension and postretirement service costs | |||||||||||
Asset impairment charges(2) | |||||||||||
Restructuring and other related charges | |||||||||||
Consolidated operating income | $ | $ |
Three months ended | |||||||||||
March 28, 2020 | March 30, 2019 | ||||||||||
Revenues recognized over time: | |||||||||||
Food and Beverage | $ | $ | |||||||||
Industrial | |||||||||||
Total revenues recognized over time | $ | $ |
Three months ended March 28, 2020 | Three months ended March 30, 2019 | ||||||||||||||||||||||||||||||||||
Original Equipment | Aftermarket | Total Revenues | Original Equipment | Aftermarket | Total Revenues | ||||||||||||||||||||||||||||||
Food and Beverage | $ | (1) | $ | $ | $ | (1) | $ | $ | |||||||||||||||||||||||||||
Industrial | |||||||||||||||||||||||||||||||||||
Total revenues | $ | $ | $ | $ | $ | $ |
March 28, 2020 | December 31, 2019 | Change(1) | |||||||||||||||
Contract accounts receivable(2) | $ | $ | $ | ( | |||||||||||||
Contract assets | |||||||||||||||||
Contract liabilities | ( | ( | |||||||||||||||
Net contract balance | $ | $ | $ | ( |
March 28, 2020 | December 31, 2019 | Balance Sheet Caption in Which Balance is Reported | |||||||||||||||
Finance lease ROU assets | $ | $ | Property, plant and equipment, net | ||||||||||||||
Operating lease ROU assets | Other assets | ||||||||||||||||
Current portion of operating lease liabilities | Accrued expenses | ||||||||||||||||
Current portion of finance lease liabilities | Current maturities of long-term debt | ||||||||||||||||
Long-term finance lease liabilities | Long-term debt | ||||||||||||||||
Long-term operating lease liabilities | Other long-term liabilities |
Three months ended | |||||||||||
March 28, 2020 (1) | March 30, 2019 (1) | ||||||||||
Operating lease cost(2) | $ | $ | |||||||||
Short-term lease cost(2) | |||||||||||
Variable lease cost(2) | |||||||||||
Total lease cost | $ | $ |
Year Ending December 31, | Operating leases | Finance leases | Total | |||||||||||||||||
2020 | $ | $ | $ | |||||||||||||||||
2021 | ||||||||||||||||||||
2022 | ||||||||||||||||||||
2023 | ||||||||||||||||||||
2024 | ||||||||||||||||||||
2025 | ||||||||||||||||||||
Thereafter | ||||||||||||||||||||
Total lease payments | ||||||||||||||||||||
Less: interest | ( | ( | ( | |||||||||||||||||
Present value of lease liabilities | $ | $ | $ |
March 28, 2020 | December 31, 2019 | ||||||||||
Weighted-average remaining lease term (years): | |||||||||||
Operating leases | |||||||||||
Finance leases | |||||||||||
Weighted-average discount rate: | |||||||||||
Operating leases | % | % | |||||||||
Finance leases | % | % |
Three months ended | |||||||||||
March 28, 2020 | March 30, 2019 | ||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Operating cash flows paid for operating leases | $ | $ | |||||||||
Operating cash flows paid for finance leases | |||||||||||
Financing cash flows paid for finance leases | |||||||||||
Non-cash activities: | |||||||||||
Operating lease ROU assets obtained in exchange for new operating lease liabilities | |||||||||||
Finance lease ROU assets obtained in exchange for new finance lease liabilities |
Three months ended | |||||||||||
March 28, 2020 | March 30, 2019 | ||||||||||
Food and Beverage | $ | $ | |||||||||
Industrial | |||||||||||
Other | |||||||||||
Total | $ | $ |
Three months ended | |||||||||||
March 28, 2020 | March 30, 2019 | ||||||||||
Balance at beginning of year | $ | $ | |||||||||
Restructuring and other related charges(1) | |||||||||||
Utilization — cash | ( | ( | |||||||||
Currency translation adjustment and other | ( | ||||||||||
Balance at end of period | $ | $ |
March 28, 2020 | December 31, 2019 | ||||||||||
Finished goods | $ | $ | |||||||||
Work in process | |||||||||||
Raw materials and purchased parts | |||||||||||
Total FIFO cost | |||||||||||
Excess of FIFO cost over LIFO inventory value | ( | ( | |||||||||
Total inventories | $ | $ |
December 31, 2019 | Impairments | Foreign Currency Translation and Other | March 28, 2020 | ||||||||||||||||||||
Food and Beverage | $ | $ | $ | ( | $ | ||||||||||||||||||
Industrial(1) | ( | ||||||||||||||||||||||
Total | $ | $ | $ | ( | $ |
March 28, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||
Gross Carrying Value | Accumulated Amortization | Net Carrying Value | Gross Carrying Value | Accumulated Amortization | Net Carrying Value | ||||||||||||||||||||||||||||||
Intangible assets with determinable lives: | |||||||||||||||||||||||||||||||||||
Customer relationships | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
Technology | ( | ( | |||||||||||||||||||||||||||||||||
Patents | ( | ( | |||||||||||||||||||||||||||||||||
Other | ( | ( | |||||||||||||||||||||||||||||||||
( | ( | ||||||||||||||||||||||||||||||||||
Trademarks with indefinite lives | — | — | |||||||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | $ | ( | $ |
Foreign Pension Plans | Domestic Pension and Postretirement Plans | Total | Statement of Operations Caption in Which Expense is Reported | ||||||||||||||||||||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||||||||||||||||||
March 28, 2020 | March 30, 2019 | March 28, 2020 | March 30, 2019 | March 28, 2020 | March 30, 2019 | ||||||||||||||||||||||||||||||||||||
Service cost | $ | $ | $ | $ | $ | Selling, general and administrative | |||||||||||||||||||||||||||||||||||
Interest cost | Other income (expense), net | ||||||||||||||||||||||||||||||||||||||||
Total net periodic benefit expense | $ | $ | $ | $ | $ | $ |
March 28, 2020 | December 31, 2019 | ||||||||||
Term loan, due in June 2022 | $ | $ | |||||||||
Other indebtedness(1) | |||||||||||
Less: deferred financing fees(2) | ( | ( | |||||||||
Total debt | |||||||||||
Less: short-term debt | |||||||||||
Less: current maturities of long-term debt | |||||||||||
Total long-term debt | $ | $ |
Three months ended | |||||||||||
March 28, 2020 | March 30, 2019 | ||||||||||
Weighted-average shares outstanding, basic | |||||||||||
Dilutive effect of share-based awards | |||||||||||
Weighted-average shares outstanding, dilutive(1) |
Three months ended | |||||||||||
March 28, 2020 | March 30, 2019 | ||||||||||
Stock-based compensation expense - continuing and discontinued operations | $ | $ | |||||||||
Less: stock-based compensation expense recognized in discontinued operations | |||||||||||
Stock-based compensation expense recognized in continuing operations | |||||||||||
Income tax benefit | ( | ( | |||||||||
Stock-based compensation expense, net of income tax benefit | $ | $ |
Annual Expected Stock Price Volatility | Annual Expected Dividend Yield | Risk-free Interest Rate | Correlations Between Total Shareholder Return for SPX FLOW and Individual Companies in the Composite Group | ||||||||||||||||||||||||||||||||
Minimum | Average | Maximum | |||||||||||||||||||||||||||||||||
March 5, 2020: | |||||||||||||||||||||||||||||||||||
SPX FLOW | % | % | % | ||||||||||||||||||||||||||||||||
Composite Group | % | n/a | % | ||||||||||||||||||||||||||||||||
Unvested Restricted Stock Shares and Restricted Stock Units | Weighted-Average Grant-Date Fair Value Per Share | ||||||||||
Outstanding at December 31, 2019 | $ | ||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Forfeited and other | ( | ||||||||||
Outstanding at March 28, 2020 | $ |
March 28, 2020 | December 31, 2019 | ||||||||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||||||||||
Term loan(1) | $ | $ | $ | $ | |||||||||||||||||||
Other indebtedness |
Three months ended | |||||||||||||||||
March 28, 2020 | March 30, 2019 | % Change | |||||||||||||||
Revenues | $ | 289.5 | $ | 373.4 | (22.5) | ||||||||||||
Gross profit | 101.1 | 123.4 | (18.1) | ||||||||||||||
% of revenues | 34.9 | % | 33.0 | % | |||||||||||||
Selling, general and administrative | 85.2 | 87.5 | (2.6) | ||||||||||||||
% of revenues | 29.4 | % | 23.4 | % | |||||||||||||
Intangible amortization | 2.8 | 2.9 | (3.4) | ||||||||||||||
Asset impairment charges | 1.9 | — | * | ||||||||||||||
Restructuring and other related charges | 2.6 | 5.0 | (48.0) | ||||||||||||||
Other income (expense), net | (1.5) | 5.3 | * | ||||||||||||||
Interest expense, net | (8.1) | (7.6) | 6.6 | ||||||||||||||
Income (loss) from continuing operations before income taxes | (1.0) | 25.7 | (103.9) | ||||||||||||||
Income tax benefit (provision) | 0.9 | (10.7) | (108.4) | ||||||||||||||
Income (loss) from continuing operations | (0.1) | 15.0 | (100.7) | ||||||||||||||
Income (loss) from discontinued operations, net of tax | (5.1) | 5.1 | * | ||||||||||||||
Net income (loss) | (5.2) | 20.1 | * | ||||||||||||||
Less: Net income attributable to noncontrolling interests | 0.1 | 0.6 | (83.3) | ||||||||||||||
Net income (loss) attributable to SPX FLOW, Inc. | (5.3) | 19.5 | * | ||||||||||||||
Components of consolidated revenue decline: | |||||||||||||||||
Organic decline | (19.6) | ||||||||||||||||
Foreign currency | (2.9) | ||||||||||||||||
Net revenue decline | (22.5) | ||||||||||||||||
*Not meaningful for comparison purposes |
As of and for the three months ended | |||||||||||||||||
March 28, 2020 | March 30, 2019 | % Change | |||||||||||||||
Backlog | $ | 251.5 | $ | 290.0 | (13.3) | ||||||||||||
Orders | 125.2 | 153.1 | (18.2) | ||||||||||||||
Revenues | 137.8 | 172.5 | (20.1) | ||||||||||||||
Income | 19.4 | 18.5 | 4.9 | ||||||||||||||
% of revenues | 14.1 | % | 10.7 | % | |||||||||||||
Components of revenue decline: | |||||||||||||||||
Organic decline | (17.0) | ||||||||||||||||
Foreign currency | (3.1) | ||||||||||||||||
Net revenue decline | (20.1) |
As of and for the three months ended | |||||||||||||||||
March 28, 2020 | March 30, 2019 | % Change | |||||||||||||||
Backlog | $ | 265.5 | $ | 265.7 | (0.1) | ||||||||||||
Orders | 191.8 | 204.6 | (6.3) | ||||||||||||||
Revenues | 151.7 | 200.9 | (24.5) | ||||||||||||||
Income | 9.4 | 28.5 | (67.0) | ||||||||||||||
% of revenues | 6.2 | % | 14.2 | % | |||||||||||||
Components of revenue decline: | |||||||||||||||||
Organic decline | (21.8) | ||||||||||||||||
Foreign currency | (2.7) | ||||||||||||||||
Net revenue decline | (24.5) |
Three months ended | |||||||||||||||||
March 28, 2020 | March 30, 2019 | % Change | |||||||||||||||
Total consolidated revenues | $ | 289.5 | $ | 373.4 | (22.5) | ||||||||||||
Corporate expense | 15.5 | 13.8 | 12.3 | ||||||||||||||
% of revenues | 5.4 | % | 3.7 | % | |||||||||||||
Pension and postretirement service costs | 0.2 | 0.2 | — |
As of and for the three months ended | |||||||||||||||||
March 28, 2020 | March 30, 2019 | % Change | |||||||||||||||
Backlog | $ | 372.0 | $ | 361.7 | 2.8 | ||||||||||||
Orders | 102.9 | 101.7 | 1.2 | ||||||||||||||
Revenues | 110.7 | 117.7 | (5.9) | ||||||||||||||
Operating income (loss) | (4.1) | 8.8 | * | ||||||||||||||
% of revenues | (3.7) | % | 7.5 | % | |||||||||||||
Other expense, net | (0.3) | (0.6) | (50.0) | ||||||||||||||
Interest expense, net | (1.6) | (3.1) | (48.4) | ||||||||||||||
Income tax benefit | 0.9 | — | * | ||||||||||||||
Income (loss) from discontinued operations, net of tax | (5.1) | 5.1 | * | ||||||||||||||
Components of revenue decline: | |||||||||||||||||
Organic decline | (3.3) | ||||||||||||||||
Foreign currency | (2.6) | ||||||||||||||||
Revenue decline | (5.9) | ||||||||||||||||
*Not meaningful for comparison purposes |
Three months ended | |||||||||||
March 28, 2020 | March 30, 2019 | ||||||||||
Cash flows from (used in) continuing operations: | |||||||||||
Cash flows from (used in) operating activities | $ | (32.2) | $ | 10.7 | |||||||
Cash flows used in investing activity | (4.7) | (5.3) | |||||||||
Cash flows used in financing activities | (15.5) | (12.1) | |||||||||
Cash flows from (used in) discontinued operations | (6.3) | 9.4 | |||||||||
Change in cash, cash equivalents and restricted cash due to changes in foreign currency exchange rates | (0.9) | (13.8) | |||||||||
Net change in cash, cash equivalents and restricted cash | $ | (59.6) | $ | (11.1) |
March 28, 2020 | December 31, 2019 | ||||||||||
Term loan, due in June 2022 | $ | 100.0 | $ | 100.0 | |||||||
5.625% senior notes, due in August 2024 | 300.0 | 300.0 | |||||||||
5.875% senior notes, due in August 2026 | 300.0 | 300.0 | |||||||||
Other indebtedness(1) | 13.4 | 21.3 | |||||||||
Less: deferred financing fees(2) | (6.5) | (6.8) | |||||||||
Total debt | 706.9 | 714.5 | |||||||||
Less: short-term debt | 12.8 | 20.7 | |||||||||
Less: current maturities of long-term debt | 0.1 | 0.1 | |||||||||
Total long-term debt | $ | 694.0 | $ | 693.7 |
Due Within 1 Year | Due Within 2 Years | Due Within 3 Years | Due Within 4 Years | Due Within 5 Years | Thereafter | Total | Fair Value | ||||||||||||||||||||||||||||||||||||||||
Term loan | $ | — | $ | — | $ | 100.0 | $ | — | $ | — | $ | — | $ | 100.0 | $ | 100.0 | |||||||||||||||||||||||||||||||
Average interest rate | 2.391 | % | |||||||||||||||||||||||||||||||||||||||||||||
5.625% senior notes | — | — | — | — | 300.0 | — | 300.0 | 297.0 | |||||||||||||||||||||||||||||||||||||||
Average interest rate | 5.625 | % | |||||||||||||||||||||||||||||||||||||||||||||
5.875% senior notes | — | — | — | — | — | 300.0 | 300.0 | 297.0 | |||||||||||||||||||||||||||||||||||||||
Average interest rate | 5.875 | % |
Period | Total Number of Shares Purchased(1) | Average Price Per Share | Total Number of Shares Purchased as Part of a Publicly Announced Plan or Program | Maximum Approximate Dollar Value of Shares That May Yet be Purchased Under the Plan or Program | ||||||||||||||||||||||
1/1/20 - 2/1/20 | 67,049 | $ | 47.56 | — | — | |||||||||||||||||||||
2/2/20 - 2/29/20 | 64,267 | 39.72 | — | — | ||||||||||||||||||||||
3/1/20 - 3/28/20 | 20,324 | 34.19 | — | $150.0(2) | ||||||||||||||||||||||
Total | 151,640 | — | $150.0(2) |
Item No. | Description | |||||||
Purchase and Sale Agreement dated as of November 24, 2019 between SPX FLOW, Inc. and Boardwalk Parent LLC, incorporated by reference from the Company’s Current Report on Form 8-K filed on November 25, 2019 (file no. 1-37393). | ||||||||
Statement regarding computation of earnings per share. See condensed consolidated statements of operations on page 1 of this Form 10-Q. | ||||||||
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||||||||
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||||||||
Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||||||||
101.INS | XBRL Instance Document - The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in the Interactive Data Files submitted as Exhibits 101.*) |
SPX FLOW, Inc. | |||||||||||
(Registrant) | |||||||||||
Date: May 13, 2020 | By | /s/ Marcus G. Michael | |||||||||
President and Chief Executive Officer | |||||||||||
Date: May 13, 2020 | By | /s/ Jaime M. Easley | |||||||||
Vice President, Chief Financial Officer and Chief Accounting Officer |
Date: May 13, 2020 | /s/ MARCUS G. MICHAEL | ||||
President and Chief Executive Officer |
Date: May 13, 2020 | /s/ JAIME M. EASLEY | ||||
Vice President, Chief Financial Officer and Chief Accounting Officer |
Date: May 13, 2020 | ||||||||
/s/ MARCUS G. MICHAEL | /s/ JAIME M. EASLEY | |||||||
Marcus G. Michael | Jaime M. Easley | |||||||
President and Chief Executive Officer | Vice President, Chief Financial Officer and Chief Accounting Officer |
INVENTORIES, NET - Inventories (Details) - USD ($) $ in Millions |
Mar. 28, 2020 |
Dec. 31, 2019 |
---|---|---|
Inventory, Net [Abstract] | ||
Finished goods | $ 86.0 | $ 82.5 |
Work in process | 49.7 | 47.0 |
Raw materials and purchased parts | 86.1 | 85.9 |
Total FIFO cost | 221.8 | 215.4 |
Excess of FIFO cost over LIFO inventory value | (7.3) | (7.3) |
Total inventories | $ 214.5 | $ 208.1 |
Domestic inventories valued using the last-in, first-out method, as a percentage of total inventory | 12.00% | 11.00% |
Label | Element | Value |
---|---|---|
Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (8,500,000) |
AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 0 |
LEASES - Future Lease Payments (Details) - USD ($) $ in Millions |
Mar. 28, 2020 |
Dec. 31, 2019 |
---|---|---|
Leases [Abstract] | ||
2020 | $ 13.0 | |
2021 | 12.3 | |
2022 | 8.8 | |
2023 | 6.9 | |
2024 | 6.0 | |
2025 | 3.6 | |
Thereafter | 9.9 | |
Total lease payments | 60.5 | |
Less: interest | (7.3) | |
Present value of lease liabilities | 53.2 | |
2020 | 0.2 | |
2021 | 0.2 | |
2022 | 0.1 | |
2023 | 0.1 | |
2024 | 0.1 | |
2025 | 0.0 | |
Thereafter | 0.0 | |
Total lease payments | 0.7 | |
Less: interest | (0.1) | |
Present value of lease liabilities | 0.6 | $ 0.6 |
2020 | 13.2 | |
2021 | 12.5 | |
2022 | 8.9 | |
2023 | 7.0 | |
2024 | 6.1 | |
2025 | 3.6 | |
Thereafter | 9.9 | |
Total lease payments | 61.2 | |
Less: interest | (7.4) | |
Present value of lease liabilities | $ 53.8 | |
Weighted Average Remaining Lease Terms [Abstract] | ||
Operating leases | 6 years 1 month 6 days | 6 years |
Finance leases | 4 years 3 months 18 days | 4 years 3 months 18 days |
Operating leases | 4.45% | 4.49% |
Finance leases | 5.32% | 5.32% |
EQUITY AND STOCK-BASED COMPENSATION - Common Stock in Treasury (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 28, 2020 |
Mar. 30, 2019 |
|
Common Stock in Treasury | ||
Equity, Class of Treasury Stock [Line Items] | ||
Common stock surrendered as a means of funding income tax withholding requirements | $ 6.4 | $ 5.1 |
FAIR VALUE - Equity Security Investment (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 30, 2019 |
Mar. 28, 2020 |
Dec. 31, 2019 |
|
Fair Value Disclosures [Abstract] | |||
Asset value | $ 21.8 | $ 21.8 | |
Gain due to increase in estimated fair value of equity security | $ 6.2 | ||
Proceeds received from sale of investment | $ 2.6 |
GOODWILL, OTHER INTANGIBLE ASSETS AND ASSET IMPAIRMENT CHARGES |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL, OTHER INTANGIBLE ASSETS AND ASSET IMPAIRMENT CHARGES | GOODWILL, OTHER INTANGIBLE ASSETS AND ASSET IMPAIRMENT CHARGES Goodwill The changes in the carrying amount of goodwill by reportable segment during the three months ended March 28, 2020 were as follows:
(1)The carrying amount of goodwill included $132.9 and $133.6 of accumulated impairments as of March 28, 2020 and December 31, 2019, respectively. We completed our annual impairment testing of goodwill (and indefinite-lived intangible assets that are not amortized) during the fourth quarter of 2019 and determined there were no impairments. The goodwill impairment tests indicated significant excess fair value over the carrying value of both of our reporting units. During the three months ended March 28, 2020, we evaluated whether a triggering event had occurred due to the effects of the COVID-19 pandemic. We do not expect the adverse impacts of the COVID-19 pandemic to significantly affect the assumptions underlying our long-term revenue and cash flow growth rates, operating models or business strategies, and the fair values of our reporting units continued to substantially exceed their respective carrying values as of March 28, 2020. Therefore, we do not consider the COVID-19 pandemic to be a triggering event to accelerate our annual impairment analysis and no impairment charges for goodwill or indefinite-lived intangible assets were recorded during the three months ended March 28, 2020. Refer to Note 3 for further discussion of management's evaluation as of March 28, 2020 of the net carrying value of discontinued operations relative to estimated sales proceeds from the sale of such business. We will continue to monitor the effects of the COVID-19 pandemic on our business in future periods in order to reassess our conclusion reached as of March 28, 2020 that a triggering event has not occurred, including evaluating the assumptions utilized in our fourth quarter of 2019 annual impairment testing. Should those conclusions continue to apply throughout the remaining fiscal quarters of 2020, we will perform our annual impairment testing of goodwill (and indefinite-lived intangible assets that are not amortized), during the fourth quarter of 2020 in conjunction with our annual financial planning process. In performing that annual impairment testing, we will assess, among other items, order trends and the operating cash flow performance of our reporting units. Other Intangibles, Net Identifiable intangible assets were as follows:
As of March 28, 2020, the net carrying value of intangible assets with determinable lives consisted of the following by reportable segment: $25.0 in Food and Beverage and $13.9 in Industrial. Trademarks with indefinite lives consisted of the following by reportable segment: $92.9 in Food and Beverage and $65.6 in Industrial. No intangible asset impairment charges were recorded during the three months ended March 28, 2020 or March 30, 2019. Changes in the gross carrying values of trademarks and other identifiable intangible assets during the three months ended March 28, 2020 related to foreign currency translation. Tangible Long-Lived Asset Impairment Charges As discussed in Note 4, asset impairment charges of $1.9 during the three months ended March 28, 2020 resulted from management’s decision within the first quarter of 2020 to discontinue a product line within the Industrial reportable segment. Such charges related to certain machinery and equipment of the segment.
|
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Mar. 28, 2020 |
Dec. 31, 2019 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 3,000,000 | 3,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 43,353,166 | 43,128,247 |
Common stock, shares outstanding (in shares) | 42,640,163 | 42,566,884 |
Common stock in treasury (in shares) | 713,003 | 561,363 |
REVENUE FROM CONTRACTS WITH CUSTOMER |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contracts with Customers | REVENUE FROM CONTRACTS WITH CUSTOMERS Information regarding the nature, amount, timing and uncertainty of revenue, and the related cash flows, is noted in further detail below. Revenues recognized over time: The following table provides revenues recognized over time by reportable segment for the three months ended March 28, 2020 and March 30, 2019:
Disaggregated Information about Revenues: Our aftermarket revenues generally include sales of parts and service/maintenance support, and original equipment (“OE”) revenues generally include all other revenue streams. The following tables provide disaggregated information about our OE, including Food and Beverage systems, and aftermarket revenues by reportable segment for the three months ended March 28, 2020 and March 30, 2019:
(1)Includes $37.9 and $62.6 for the three months ended March 28, 2020 and March 30, 2019, respectively, of revenue realized from the sale of highly engineered Food and Beverage systems. Contract Balances: Our contract accounts receivable, assets and liabilities, and changes in such balances, were as follows:
(1) The $10.8 increase in our net contract balance from December 31, 2019 to March 28, 2020 was primarily due to the timing of advance and milestone payments received on certain Food and Beverage contracts recognized over time, and of performance obligations satisfied and the related revenue recognized on such contracts. (2) Included in “Accounts receivable, net” in our condensed consolidated balance sheets. Amounts are presented before consideration of the allowance for uncollectible accounts. During the three months ended March 28, 2020 and March 30, 2019, we recognized revenues of $42.5 and $52.5 related to contract liabilities outstanding as of December 31, 2019 and 2018, respectively. Contract Costs: As of March 28, 2020 and December 31, 2019, the Company recognized an asset related to the incremental costs of obtaining contracts with customers of $0.4, which is classified in “Other current assets” in the accompanying condensed consolidated balance sheets. Remaining Performance Obligations: As of March 28, 2020 and March 30, 2019, the aggregate amount of our remaining performance obligations was $517.0 and $555.7, respectively. The Company expects to recognize revenue on approximately 94% and substantially all of our remaining performance obligations outstanding as of March 28, 2020 within the next 12 and 24 months, respectively.
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BASIS OF PRESENTATION |
3 Months Ended |
---|---|
Mar. 28, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | General Matters SPX FLOW, Inc. and its consolidated subsidiaries (“SPX FLOW,” ‘‘the Company,’’ “we,” “us,” or “our”) operate in two business segments: the Food and Beverage segment and the Industrial segment. We prepared the condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim reporting. As permitted under those rules and regulations, certain footnotes or other financial information normally required by accounting principles generally accepted in the United States (“GAAP”) can be condensed or omitted. The financial statements represent our accounts after the elimination of intercompany transactions and, in our opinion, include the adjustments (consisting only of normal and recurring items) necessary for their fair presentation. We began to experience the adverse impacts of the novel coronavirus pandemic (“COVID-19” or the “COVID-19 pandemic”) in the first quarter of 2020 and these adverse impacts are expected to continue primarily in the second and third quarters of 2020, and possibly longer. Despite the adverse impacts, there are no indications that the COVID-19 pandemic has resulted in a material decline in the carrying value of any assets, or a material change in the estimate of any contingent amounts, recorded in our condensed consolidated balance sheet as of March 28, 2020. However, there is uncertainty as to the duration and overall impact of the COVID-19 pandemic, which could result in an adverse material change in a future period to the estimates we have made related to the valuation of assets and contingent amounts, which could result in the impairment of certain assets or the recognition of costs due to increases in contingent amounts. Preparing financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from these estimates. The unaudited information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements contained in our 2019 Annual Report on Form 10-K. Interim results are not necessarily indicative of full year results and the condensed consolidated financial statements may not be indicative of the Company’s future performance. We have reclassified certain prior year amounts, including the results of discontinued operations and reportable segment information, to conform to the current year presentation. Unless otherwise indicated, amounts provided in these Notes pertain to continuing operations. See Note 3 for information on discontinued operations and Note 4 for information on our reportable segments. We establish actual interim closing dates using a fiscal calendar, which requires our businesses to close their books on the Saturday closest to the end of the first calendar quarter, with the second and third quarters being 91 days in length. Our fourth quarter ends on December 31. The interim closing dates for the first, second and third quarters of 2020 are March 28, June 27, and September 26, compared to the respective March 30, June 29, and September 28, 2019 dates. We had one less day in the first quarter of 2020 and will have two more days in the fourth quarter of 2020 than in the respective 2019 periods.
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INVENTORIES, NET (Tables) |
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Mar. 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of inventories | Inventories at March 28, 2020 and December 31, 2019 comprised the following:
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EQUITY AND STOCK-BASED COMPENSATION (Tables) |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of weighted average shares outstanding used in computation of basic and diluted income (loss) per share | The following table sets forth the number of weighted-average shares outstanding used in the computation of basic and diluted income (loss) per share:
(1)For the three months ended March 28, 2020, an aggregate of 0.637 unvested restricted stock shares, restricted stock units and stock options outstanding were excluded from the computation of diluted loss per share as we incurred a net loss during the period. For the three months ended March 28, 2020, the number of anti-dilutive unvested restricted stock shares and restricted stock units outstanding excluded from the computation of diluted loss per share was 0.427. Unvested restricted stock shares/units not included in the computation of diluted income per share because required market thresholds for vesting (as discussed below) were not met, were 0.202 for the three months ended March 30, 2019. Unvested restricted stock shares/units not included in the computation of diluted income per share because required internal performance thresholds for vesting (as discussed below) were not met, were 0.151 for the three months ended March 30, 2019. Stock options outstanding excluded from the computation of diluted income per share because their exercise price was greater than the average market price of common shares, were 0.342 for the three months ended March 30, 2019.
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Schedule of compensation expense related to share-based programs recognized in selling, general and administrative expense | For the three months ended March 28, 2020 and March 30, 2019, we recognized compensation expense related to share-based programs in “Selling, general and administrative” expense in the accompanying condensed consolidated statements of operations as follows:
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Summary of restricted stock share and restricted stock unit activity | The following table summarizes the unvested restricted stock share and restricted stock unit activity for the three months ended March 28, 2020:
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Assumptions used in determining fair value of awards granted | The following assumptions were used in determining the fair value of the awards granted on the date indicated below:
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SUBSEQUENT EVENT |
3 Months Ended |
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Mar. 28, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENT As discussed in Note 3, on March 30, 2020, the Company completed the sale of substantially all of the Disposal Group and received net proceeds from the Buyer of $406.2, based on an estimate of certain adjustments to the gross purchase price as of the closing date and, to a lesser extent, certain fees. The consummation of the sale to the Buyer of a remaining business reflected as discontinued operations and based in India, with an expected gross purchase price of $6.4, remains subject to local regulatory approvals. Concurrent with the closing of the Transaction, the parties entered into certain ancillary agreements including, among others, a TSA and a Procurement Agreement. Under the TSA, SPX FLOW provides the Buyer with certain specified services for varying periods in order to ensure an orderly transition of the business following the closing at agreed-upon prices or rates. These services include, among others, certain information technology, finance and human resources services. The Procurement Agreement provides for purchases by SPX FLOW through May 2025 of certain filtration elements produced by a business unit of the Disposal Group. See Note 3 for further details regarding the closing of the Transaction, as well as the TSA and Procurement Agreement.
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EQUITY AND STOCK-BASED COMPENSATION |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EQUITY AND STOCK-BASED COMPENSATION | EQUITY AND STOCK-BASED COMPENSATION Income (Loss) Per Share The following table sets forth the number of weighted-average shares outstanding used in the computation of basic and diluted income (loss) per share:
(1)For the three months ended March 28, 2020, an aggregate of 0.637 unvested restricted stock shares, restricted stock units and stock options outstanding were excluded from the computation of diluted loss per share as we incurred a net loss during the period. For the three months ended March 28, 2020, the number of anti-dilutive unvested restricted stock shares and restricted stock units outstanding excluded from the computation of diluted loss per share was 0.427. Unvested restricted stock shares/units not included in the computation of diluted income per share because required market thresholds for vesting (as discussed below) were not met, were 0.202 for the three months ended March 30, 2019. Unvested restricted stock shares/units not included in the computation of diluted income per share because required internal performance thresholds for vesting (as discussed below) were not met, were 0.151 for the three months ended March 30, 2019. Stock options outstanding excluded from the computation of diluted income per share because their exercise price was greater than the average market price of common shares, were 0.342 for the three months ended March 30, 2019. Stock-Based Compensation SPX FLOW stock-based compensation awards may be granted to certain eligible employees or non-employee directors under the SPX FLOW Stock Compensation Plan (the “Stock Plan”). Under the Stock Plan, up to 2.123 unissued shares of our common stock were available for future grant as of March 28, 2020. The Stock Plan permits the issuance of authorized but unissued shares or shares from treasury upon the vesting of restricted stock units, granting of restricted stock shares or exercise of stock options. Each restricted stock share, restricted stock unit and stock option granted reduces share availability under the Stock Plan by one share. Restricted stock shares or restricted stock units may be granted to certain eligible employees or non-employee directors in accordance with the Stock Plan and applicable award agreements. Subject to participants' continued service and other award terms and conditions, the restrictions lapse and awards generally vest over a period of time, generally three years (or one year for awards to non-employee directors). In some instances, such as death, disability, or retirement, awards may vest concurrently with or following an employee's termination. Approximately half of such restricted stock shares and restricted stock unit awards vest based on performance thresholds, while the remaining portion vest based on the passage of time since grant date. Eligible employees, including officers, were granted 2020 target performance awards, during the three months ended March 28, 2020, in which the employee can earn between 50% and 200% of the target performance award in the event, and to the extent, the award meets the required performance vesting criteria. Such awards are generally subject to the employees’ continued employment during the -year vesting period, and may be completely forfeited if the threshold performance criteria are not met. Vesting for the 2020 target performance awards is based on SPX FLOW shareholder return versus the performance of a composite group of companies, as established under the awards (the “Composite Group”), over the -year period from January 1, 2020 through December 31, 2022. In addition, certain eligible employees, including officers, were granted 2020 target performance awards during the three months ended March 28, 2020 that vest subject to attainment of stated improvements in a three-year average annual return on invested capital (as defined under the awards) measured at the conclusion of the measurement period ending December 31, 2022 (including eligible employees’ continued employment during the measurement period). These target performance awards were issued as restricted stock units to eligible employees, including officers. In the event of vesting, the 2020 target performance awards generally restrict the recipient from selling, transferring, pledging or assigning the underlying shares for a -year period, ending December 31, 2023. Eligible employees, including officers, also were granted 2020 awards, during the three months ended March 28, 2020, that vest ratably over three years, subject to the passage of time and the employees’ continued employment during such period. In some instances, such as death, disability, or retirement, awards may vest concurrently with or following an employee's termination. These awards were issued as restricted stock units to eligible employees, including officers. In accordance with terms of the Sale Agreement entered into with the Buyer, all awards granted to SPX FLOW employees who became employees of the Buyer upon closing of the Transaction on March 30, 2020, and that vest subject to the passage of time and the employees’ continued employment that would have otherwise vested within the twelve-month period following the closing date of the Transaction, vested as of March 30, 2020. Target performance awards granted in 2017 that vest subject to (i) SPX FLOW shareholder return versus the Composite Group or (ii) attainment of stated improvements in the three-year average annual return on invested capital, vested according to the terms of the underlying award agreements (including continued employment during the measurement period). All other outstanding share-based awards to SPX FLOW employees who became employees of the Buyer that did not vest under these conditions, were forfeited as of March 30, 2020. Restricted stock unit awards granted to eligible employees, including officers, during the three months ended March 28, 2020, include early retirement provisions which permit recipients to be eligible for vesting generally upon reaching the age of 60 and completing ten years of service (and, if applicable, subject to the attainment of performance measures). Restricted stock units that do not vest within the applicable vesting period are forfeited. Stock options may be granted to eligible employees in the form of incentive stock options or nonqualified stock options. The option price per share may be no less than the fair market value of our common stock at the close of business on the date of grant. Upon exercise, the employee has the option to surrender previously owned shares at current value in payment of the exercise price and/or for withholding tax obligations. The recognition of compensation expense for share-based awards is based on their grant-date fair values. The fair value of each award is amortized over the lesser of the award's requisite or derived service period, which is generally up to three years as noted above. For the three months ended March 28, 2020 and March 30, 2019, we recognized compensation expense related to share-based programs in “Selling, general and administrative” expense in the accompanying condensed consolidated statements of operations as follows:
Restricted Stock Unit Awards The Monte Carlo simulation model valuation technique was used to determine the fair value of our 2020 restricted stock units that contain a “market condition.” The Monte Carlo simulation model utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the award and calculates the fair value of each restricted stock unit award. The valuation of such 2020 awards also reflects an illiquidity discount of 14.6%, determined utilizing the Chafee model valuation technique, and related to the one-year period that recipients are restricted from selling, transferring, pledging or assigning the underlying shares, in the event of vesting and as discussed above. The following assumptions were used in determining the fair value of the awards granted on the date indicated below:
Annual expected stock price volatility was based on the weighted average of SPX FLOW’s historical volatility as of the grant date. An expected annual dividend yield was not assumed as dividends are not currently granted on common shares by SPX FLOW. The average risk-free interest rate was based on an interpolation of the two-year and three-year daily treasury yield curve rate as of the grant dates. The following table summarizes the unvested restricted stock share and restricted stock unit activity for the three months ended March 28, 2020:
As of March 28, 2020, there was $28.5 of unrecognized compensation cost related to restricted stock share and restricted stock unit compensation arrangements. We expect this cost to be recognized over a weighted-average period of 2.3 years. Stock Options There were 0.342 of SPX FLOW stock options outstanding as of March 28, 2020 and December 31, 2019, all of which were exercisable as of March 28, 2020. The weighted-average exercise price per share of the stock options is $61.29 and the weighted-average grant-date fair value per share is $19.33. The term of these options expires on January 2, 2025 (subject to earlier expiration upon a recipient's termination of service as provided under the awards). There was no unrecognized compensation cost related to these stock options as of March 28, 2020. Accumulated Other Comprehensive Loss Substantially all of accumulated other comprehensive loss (“AOCL”) as of March 28, 2020 and December 31, 2019 was foreign currency translation adjustment (there were unrealized losses of $0.3 and $0.2, net of taxes, recorded in AOCL related to FX forward contracts as of March 28, 2020 and December 31, 2019, respectively, as discussed in Note 12). See the condensed consolidated statements of comprehensive income (loss) for changes in AOCL for the three months ended March 28, 2020 and March 30, 2019. Common Stock in Treasury During the three months ended March 28, 2020 and March 30, 2019, “Common stock in treasury” was increased by $6.4 and $5.1, respectively, for common stock that was surrendered by recipients of restricted stock as a means of funding the related applicable income tax withholding requirements.
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EQUITY AND STOCK-BASED COMPENSATION - Income Per Share (Details) - shares shares in Thousands |
3 Months Ended | |
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Mar. 28, 2020 |
Mar. 30, 2019 |
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Weighted Average Number of Shares Outstanding, Diluted [Abstract] | ||
Weighted-average shares outstanding, basic (in shares) | 42,570 | 42,452 |
Dilutive effect of share-based awards (in shares) | 0 | 125 |
Weighted-average shares outstanding, dilutive (in shares) | 42,570 | 42,577 |
Restricted stock shares/Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Securities not included in computation of diluted income per share due to market threshold requirement (in shares) | 637 | 202 |
Securities not included in computation of diluted income per share due to internal performance thresholds (in shares) | 151 | |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Securities not included in computation of diluted income per share (in shares) | 427 | 342 |
EMPLOYEE BENEFIT PLANS - Components of Net Periodic Pension and Postretirement Benefit Expense (Income) (Details) - USD ($) $ in Millions |
3 Months Ended | |
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Mar. 28, 2020 |
Mar. 30, 2019 |
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Employee Benefit Plans | ||
Service cost | $ 0.2 | $ 0.2 |
Interest cost | 0.2 | 0.2 |
Total net periodic benefit expense | 0.4 | 0.4 |
Pension plan | ||
Employee Benefit Plans | ||
Domestic pension payments (less than) | 0.1 | 0.1 |
Foreign Plan | Pension plan | ||
Employee Benefit Plans | ||
Service cost | 0.2 | 0.2 |
Interest cost | 0.1 | 0.1 |
Total net periodic benefit expense | 0.3 | 0.3 |
United States | ||
Employee Benefit Plans | ||
Service cost | 0.0 | 0.0 |
Interest cost | 0.1 | 0.1 |
Total net periodic benefit expense | $ 0.1 | $ 0.1 |
BASIS OF PRESENTATION (Policies) |
3 Months Ended |
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Mar. 28, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | We prepared the condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim reporting. As permitted under those rules and regulations, certain footnotes or other financial information normally required by accounting principles generally accepted in the United States (“GAAP”) can be condensed or omitted. The financial statements represent our accounts after the elimination of intercompany transactions and, in our opinion, include the adjustments (consisting only of normal and recurring items) necessary for their fair presentation. We began to experience the adverse impacts of the novel coronavirus pandemic (“COVID-19” or the “COVID-19 pandemic”) in the first quarter of 2020 and these adverse impacts are expected to continue primarily in the second and third quarters of 2020, and possibly longer. Despite the adverse impacts, there are no indications that the COVID-19 pandemic has resulted in a material decline in the carrying value of any assets, or a material change in the estimate of any contingent amounts, recorded in our condensed consolidated balance sheet as of March 28, 2020. However, there is uncertainty as to the duration and overall impact of the COVID-19 pandemic, which could result in an adverse material change in a future period to the estimates we have made related to the valuation of assets and contingent amounts, which could result in the impairment of certain assets or the recognition of costs due to increases in contingent amounts. Preparing financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from these estimates. The unaudited information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements contained in our 2019 Annual Report on Form 10-K. Interim results are not necessarily indicative of full year results and the condensed consolidated financial statements may not be indicative of the Company’s future performance. We have reclassified certain prior year amounts, including the results of discontinued operations and reportable segment information, to conform to the current year presentation. Unless otherwise indicated, amounts provided in these Notes pertain to continuing operations. See Note 3 for information on discontinued operations and Note 4 for information on our reportable segments. We establish actual interim closing dates using a fiscal calendar, which requires our businesses to close their books on the Saturday closest to the end of the first calendar quarter, with the second and third quarters being 91 days in length. Our fourth quarter ends on December 31. The interim closing dates for the first, second and third quarters of 2020 are March 28, June 27, and September 26, compared to the respective March 30, June 29, and September 28, 2019 dates. We had one less day in the first quarter of 2020 and will have two more days in the fourth quarter of 2020 than in the respective 2019 periods.
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New Accounting Pronouncements | The following is a summary of new accounting pronouncements that apply or may apply to our business. In June 2016, and as subsequently amended, the Financial Accounting Standards Board (the “FASB”) issued an amendment on the measurement of credit losses. This amendment requires companies to estimate all expected credit losses for certain types of financial instruments held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. The adoption of this amendment by the Company effective January 1, 2020 did not have an impact on its condensed consolidated financial statements. We concluded that this amendment applies primarily to our “Accounts Receivable, net” balance, as we have not historically experienced, nor do we expect to experience, significant credit losses related to our “Contract Assets” or “Contract Liabilities” balances. The contracts underlying “Contract Assets” and “Contract Liabilities” balances, for which revenue is recognized over time, contain cancellation and payment clauses within their terms that generally serve to protect the Company in the event of a default by a customer. In addition, customers with whom these types of contracts are entered into are historically among the Company’s largest and such customers generally have more significant levels of financial resources than certain of our customers with whom contracts are recognized at a point in time. The Company performed an analysis of its accounts receivable collection history, evaluated the aging of accounts receivables outstanding as of the adoption date and the end of our first quarter of 2020, and considered the potential for changes in future collection experience, in assessing the application of the amendment and in concluding that the amendment had no impact on our allowance for uncollectible account receivables as of January 1, 2020, when compared to allowances recognized based on our previously existing allowance for uncollectible accounts receivable methodologies. In August 2018, the FASB issued an amendment to modify the disclosure requirements related to fair value measurements. This amendment removes, modifies and adds certain disclosures required under current guidance. For example, the amendment removes the requirements to disclose the amount of and reason for transfers between Level 1 and Level 2 of the fair value hierarchy as well as the policy for timing of transfers between levels, and requires certain additional disclosures related to Level 3 fair value measurements. The adoption of this amendment by the Company effective January 1, 2020 did not have a significant impact on its condensed consolidated financial statements. In August 2018, the FASB issued an amendment to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). Among other changes in requirements, the amendments in this update also require an entity to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement. The adoption of this amendment by the Company effective January 1, 2020 did not have a significant impact on its condensed consolidated financial statements. In August 2018, the FASB issued an amendment to modify the disclosure requirements related to defined benefit plans. This amendment removes, clarifies and adds certain disclosures required under current guidance. For example, the amendment removes the requirement to disclose the effects of a one-percentage point change in assumed health care cost trend rates on postretirement benefit obligations and service and interest cost components of periodic benefit costs, and requires an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. This amendment is effective for interim and annual reporting periods beginning after December 15, 2020, with early adoption permitted. The Company is evaluating the impact this amendment may have on its condensed consolidated financial statements.
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LITIGATION, CONTINGENT LIABILITIES AND OTHER MATTERS |
3 Months Ended |
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Mar. 28, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
LITIGATION, CONTINGENT LIABILITIES AND OTHER MATTERS | LITIGATION, CONTINGENT LIABILITIES AND OTHER MATTERS Various claims, complaints and proceedings arising in the ordinary course of business, including those relating to litigation matters (e.g., class actions, derivative lawsuits and contracts, intellectual property and competitive claims, and claims to certain indemnification obligations arising from previous acquisitions/dispositions), have been filed or are pending against us and certain of our subsidiaries. We believe these matters are either without merit or of a kind that should not have a material effect, individually or in the aggregate, on our financial position, results of operations or cash flows. We are subject to domestic and international environmental protection laws and regulations with respect to our business operations and are operating in compliance with, or taking action aimed at ensuring compliance with, these laws and regulations. We believe our compliance obligations with environmental protection laws and regulations should not have a material effect, individually or in the aggregate, on our financial position, results of operations or cash flows. Mezzanine Equity Independent noncontrolling shareholders in certain foreign subsidiaries of the Company have put options under their respective joint venture operating agreements that allow them to sell their common stock to the controlling shareholders (wholly-owned subsidiaries of SPX FLOW) upon the satisfaction of certain conditions, including the passage of time. The respective carrying values presented in “Mezzanine equity” of our condensed consolidated balance sheets as of March 28, 2020 and December 31, 2019 are stated at the current exercise value of the put options, irrespective of whether the options are currently exercisable. To the extent the noncontrolling interests' put option price is correlated with the estimated fair value of the subsidiary, we have used the market method to estimate such fair values. This represents a Level 3 fair value measurement as described in Note 16. Of the $18.7 of current exercise value of the put options outstanding as of March 28, 2020, options with a value of $10.6 became exercisable during 2018 and, during the first quarter of 2020, the noncontrolling interest shareholder exercised such options. In accordance with the terms of the relevant joint venture operating agreement, the shares will legally transfer after we and the holder of such put options complete certain agreed-up procedures. The carrying value of the put options reflected in “Mezzanine equity” as of March 28, 2020 is recorded based on our best estimate of the ultimate redemption value of the put options. If and when such options are exercised, we expect to settle the transfer of shares in cash.
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INDEBTEDNESS - Schedule of Debt (Details) - USD ($) $ in Millions |
Mar. 28, 2020 |
Dec. 31, 2019 |
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Short-term Debt [Line Items] | ||
Other indebtedness | $ 13.4 | $ 21.3 |
Less: short-term debt | 12.8 | 20.7 |
Debt Instrument [Line Items] | ||
Less: deferred financing fees | (6.5) | (6.8) |
Long-term debt and capital lease obligations | 706.9 | 714.5 |
Less: current maturities of long-term debt | 0.1 | 0.1 |
Total long-term debt | 694.0 | 693.7 |
Finance lease obligation | 0.6 | 0.6 |
Purchase card program | ||
Short-term Debt [Line Items] | ||
Other indebtedness | 12.7 | 20.4 |
Term loan | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 100.0 | 100.0 |
Senior notes | 5.625% senior notes, due in August 2024 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 5.625% | |
Long-term debt | $ 300.0 | 300.0 |
Senior notes | 5.875% senior notes, due in August 2026 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 5.875% | |
Long-term debt | $ 300.0 | $ 300.0 |
EQUITY AND STOCK-BASED COMPENSATION - Stock Options (Details) - Stock options - SPX FLOW stock options - USD ($) $ / shares in Units, shares in Thousands |
3 Months Ended | |
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Mar. 28, 2020 |
Dec. 31, 2019 |
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Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options outstanding (in shares) | 342 | 342 |
Weighted-average exercise price per share (in dollars per share) | $ 61.29 | |
Weighted-average grant-date fair value (in dollars per share) | $ 19.33 | |
Unrecognized compensation cost | $ 0 |
GOODWILL AND OTHER INTANGIBLE ASSETS - Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Millions |
3 Months Ended | |
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Mar. 28, 2020 |
Dec. 31, 2019 |
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Changes in the carrying amount of goodwill | ||
Beginning Balance | $ 545.1 | |
Impairments | 0.0 | |
Foreign Currency Translation and Other | (18.6) | |
Ending Balance | 526.5 | |
Food and Beverage | ||
Changes in the carrying amount of goodwill | ||
Beginning Balance | 257.5 | |
Impairments | 0.0 | |
Foreign Currency Translation and Other | (10.0) | |
Ending Balance | 247.5 | |
Industrial | ||
Changes in the carrying amount of goodwill | ||
Beginning Balance | 287.6 | |
Impairments | 0.0 | |
Foreign Currency Translation and Other | (8.6) | |
Ending Balance | 279.0 | |
Accumulated impairment included in carrying amount of goodwill | $ 132.9 | $ 133.6 |
LEASES - Cash Flows and Non-Cash Activities (Details) - USD ($) $ in Millions |
3 Months Ended | |
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Mar. 28, 2020 |
Mar. 30, 2019 |
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Leases [Abstract] | ||
Operating cash flows paid for operating leases | $ 4.3 | $ 4.5 |
Operating cash flows paid for finance leases | 0.0 | 0.0 |
Financing cash flows paid for finance leases | 0.0 | 0.0 |
Operating lease ROU assets obtained in exchange for new operating lease liabilities | 1.9 | 1.4 |
Finance lease ROU assets obtained in exchange for new finance lease liabilities | $ 0.0 | $ 0.3 |
EQUITY AND STOCK-BASED COMPENSATION - Accumulated Other Comprehensive Loss and Common Stock in Treasury (Details) - USD ($) $ in Millions |
Mar. 28, 2020 |
Dec. 31, 2019 |
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FX forward contracts | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Unrealized gains (losses), net of tax, recorded in AOCI | $ (0.3) | $ (0.2) |
FAIR VALUE - Derivative Financial Instruments (Details) - Forward contracts - USD ($) $ in Millions |
Mar. 28, 2020 |
Dec. 31, 2019 |
---|---|---|
Derivative [Line Items] | ||
Fair value of derivative contract, gross assets | $ 0.0 | $ 0.3 |
Fair value of derivative contract, gross liabilities | $ 0.1 | $ 0.0 |
LEASES |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | LEASESInformation regarding our operating and finance lease right-of-use (“ROU”) assets and liabilities, expense, cash flows and non-cash activities, future lease payments and key assumptions used in accounting for such leases, is noted in further detail below. The components of operating and finance lease ROU assets and liabilities as of March 28, 2020 and December 31, 2019 were as follows:
The components of lease expense for the three months ended March 28, 2020 and March 30, 2019 were as follows:
(1)Finance lease costs, including amortization of finance lease ROU assets and interest on finance lease liabilities, were less than $0.1 individually, for the three months ended March 28, 2020 and March 30, 2019. (2)Included in “Cost of products sold” and “Selling, general and administrative” in our condensed consolidated statements of operations. The future lease payments under operating and finance leases with initial remaining terms in excess of one year as of March 28, 2020 were as follows:
Key assumptions used in accounting for our operating and finance leases as of March 28, 2020 and December 31, 2019 were as follows:
Cash flows and non-cash activities related to our operating and finance leases for the three months ended March 28, 2020 and March 30, 2019 were as follows:
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Leases | LEASESInformation regarding our operating and finance lease right-of-use (“ROU”) assets and liabilities, expense, cash flows and non-cash activities, future lease payments and key assumptions used in accounting for such leases, is noted in further detail below. The components of operating and finance lease ROU assets and liabilities as of March 28, 2020 and December 31, 2019 were as follows:
The components of lease expense for the three months ended March 28, 2020 and March 30, 2019 were as follows:
(1)Finance lease costs, including amortization of finance lease ROU assets and interest on finance lease liabilities, were less than $0.1 individually, for the three months ended March 28, 2020 and March 30, 2019. (2)Included in “Cost of products sold” and “Selling, general and administrative” in our condensed consolidated statements of operations. The future lease payments under operating and finance leases with initial remaining terms in excess of one year as of March 28, 2020 were as follows:
Key assumptions used in accounting for our operating and finance leases as of March 28, 2020 and December 31, 2019 were as follows:
Cash flows and non-cash activities related to our operating and finance leases for the three months ended March 28, 2020 and March 30, 2019 were as follows:
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NEW ACCOUNTING PRONOUNCEMENTS |
3 Months Ended |
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Mar. 28, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | NEW ACCOUNTING PRONOUNCEMENTS The following is a summary of new accounting pronouncements that apply or may apply to our business. In June 2016, and as subsequently amended, the Financial Accounting Standards Board (the “FASB”) issued an amendment on the measurement of credit losses. This amendment requires companies to estimate all expected credit losses for certain types of financial instruments held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. The adoption of this amendment by the Company effective January 1, 2020 did not have an impact on its condensed consolidated financial statements. We concluded that this amendment applies primarily to our “Accounts Receivable, net” balance, as we have not historically experienced, nor do we expect to experience, significant credit losses related to our “Contract Assets” or “Contract Liabilities” balances. The contracts underlying “Contract Assets” and “Contract Liabilities” balances, for which revenue is recognized over time, contain cancellation and payment clauses within their terms that generally serve to protect the Company in the event of a default by a customer. In addition, customers with whom these types of contracts are entered into are historically among the Company’s largest and such customers generally have more significant levels of financial resources than certain of our customers with whom contracts are recognized at a point in time. The Company performed an analysis of its accounts receivable collection history, evaluated the aging of accounts receivables outstanding as of the adoption date and the end of our first quarter of 2020, and considered the potential for changes in future collection experience, in assessing the application of the amendment and in concluding that the amendment had no impact on our allowance for uncollectible account receivables as of January 1, 2020, when compared to allowances recognized based on our previously existing allowance for uncollectible accounts receivable methodologies. In August 2018, the FASB issued an amendment to modify the disclosure requirements related to fair value measurements. This amendment removes, modifies and adds certain disclosures required under current guidance. For example, the amendment removes the requirements to disclose the amount of and reason for transfers between Level 1 and Level 2 of the fair value hierarchy as well as the policy for timing of transfers between levels, and requires certain additional disclosures related to Level 3 fair value measurements. The adoption of this amendment by the Company effective January 1, 2020 did not have a significant impact on its condensed consolidated financial statements. In August 2018, the FASB issued an amendment to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). Among other changes in requirements, the amendments in this update also require an entity to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement. The adoption of this amendment by the Company effective January 1, 2020 did not have a significant impact on its condensed consolidated financial statements. In August 2018, the FASB issued an amendment to modify the disclosure requirements related to defined benefit plans. This amendment removes, clarifies and adds certain disclosures required under current guidance. For example, the amendment removes the requirement to disclose the effects of a one-percentage point change in assumed health care cost trend rates on postretirement benefit obligations and service and interest cost components of periodic benefit costs, and requires an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. This amendment is effective for interim and annual reporting periods beginning after December 15, 2020, with early adoption permitted. The Company is evaluating the impact this amendment may have on its condensed consolidated financial statements.
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EMPLOYEE BENEFIT PLANS |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANSSPX FLOW sponsors a number of defined benefit pension plans and a postretirement plan. For all of these plans, changes in the fair value of plan assets and actuarial gains and losses are recognized to earnings in the fourth quarter of each year, unless earlier remeasurement is required. The remaining components of pension and postretirement expense, primarily service and interest costs and expected return on plan assets, are recorded on a quarterly basis. Components of Net Periodic Pension and Postretirement Benefit Expense Net periodic benefit expense for our foreign pension plans and our domestic pension and postretirement plans for the three months ended March 28, 2020 and March 30, 2019 included the following components:
Employer Contributions During the three months ended March 28, 2020 and March 30, 2019, contributions to the foreign and domestic pension plans we sponsor were less than $0.1.
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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 28, 2020 |
Mar. 30, 2019 |
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Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ (5.2) | $ 20.1 |
Other comprehensive income (loss), net: | ||
Net unrealized gains (losses) on qualifying cash flow hedges, net of tax benefit (provision) of $0.1 and $(0.1), respectively | 0.1 | (0.2) |
Foreign currency translation adjustments | (64.8) | (8.9) |
Other comprehensive loss, net | (64.9) | (8.7) |
Total comprehensive income (loss) | (70.1) | 11.4 |
Less: Total comprehensive income (loss) attributable to noncontrolling interests | (0.5) | 0.6 |
Total comprehensive income (loss) attributable to SPX FLOW, Inc. | $ (69.6) | $ 10.8 |
RESTRUCTURING AND OTHER RELATED CHARGES (Tables) |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of special charges, net | Restructuring and other related charges for the three months ended March 28, 2020 and March 30, 2019 were as follows:
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Schedule of the analysis of restructuring liabilities | The following is an analysis of our restructuring liabilities (included in “Accrued expenses” in our condensed consolidated balance sheets) for the three months ended March 28, 2020 and March 30, 2019:
(1)Amounts that impacted restructuring and other related charges but not the restructuring liabilities included $0.3 of other related charges during the three months ended March 28, 2020 and March 30, 2019.
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INDEBTEDNESS (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of debt | Debt at March 28, 2020 and December 31, 2019 was comprised of the following:
(1)Primarily includes finance lease obligations of $0.6 and $0.6 and balances under a purchase card program of $12.7 and $20.4 as of March 28, 2020 and December 31, 2019, respectively. The purchase card program allows for payment beyond customary payment terms for goods and services acquired under the program. As this arrangement extends the payment of these purchases beyond their normal payment terms through third-party lending institutions, we have classified these amounts as short-term debt. (2)Deferred financing fees were comprised of fees related to the term loan and senior notes.
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INFORMATION ON REPORTABLE SEGMENTS, CORPORATE EXPENSE AND OTHER (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of financial data for reportable segments | Financial data for our reportable segments for the three months ended March 28, 2020 and March 30, 2019 were as follows:
(1)Includes $2.4 and $1.6 for the three months ended March 28, 2020 and March 30, 2019, respectively, related to costs for certain centralized functions/services provided and/or administered by SPX FLOW that were previously charged to business units of which the related financial results of operations have been reclassified to discontinued operations. These centralized functions/services included, but were not limited to, information technology, shared services for accounting, payroll services, supply chain, and manufacturing and process improvement operations/services. These costs generally represent the costs of employees who provided such centralized functions/services to the business units reclassified as discontinued operations but who remained employees of SPX FLOW upon the disposition of the discontinued operations. (2)Asset impairment charges of $1.9, during the three months ended March 28, 2020, resulted from management’s decision to discontinue a product line within the Industrial reportable segment.
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FAIR VALUE |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE | FAIR VALUE Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In the absence of active markets for the identical assets or liabilities, such measurements involve developing assumptions based on market observable data and, in the absence of such data, internal information consistent with what market participants would use in a hypothetical transaction that occurs at the measurement date. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. Preference is given to observable inputs. These two types of inputs create the following fair value hierarchy: •Level 1 — Quoted prices for identical instruments in active markets. •Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. •Level 3 — Significant inputs to the valuation model are unobservable. There were no changes during the periods presented to the valuation techniques we use to measure asset and liability fair values on a recurring basis. There were no transfers between the three levels of the fair value hierarchy during the periods presented. The following section describes the valuation methodologies we use to measure different financial instruments at fair value on a recurring basis. Derivative Financial Instruments Our derivative financial assets and liabilities include FX forward contracts and FX embedded derivatives, valued using valuation models based on observable market inputs such as forward rates, interest rates, our own credit risk and the credit risk of our counterparties, which comprise investment-grade financial institutions. Based on these inputs, the derivative assets and liabilities are classified within Level 2 of the valuation hierarchy. We have not made any adjustments to the inputs obtained from the independent sources. Based on our continued ability to enter into forward contracts, we consider the markets for our fair value instruments active. We primarily use the income approach, which uses valuation techniques to convert future amounts to a single present amount. As of March 28, 2020 and December 31, 2019, the gross fair values of our derivative financial assets and liabilities, in aggregate, were $0.0 and $0.3 (gross assets) and $0.1 and $0.0 (gross liabilities), respectively. As of March 28, 2020, there had been no significant impact to the fair value of our derivative liabilities due to our own credit risk as the related instruments are collateralized under our senior credit facilities. Similarly, there had been no significant impact to the fair value of our derivative assets based on our evaluation of our counterparties’ credit risks. Equity Security Investment The estimated fair value of our investment in an equity security, utilizing a practical expedient under relevant accounting guidance, is based on our ownership percentage, applied to the equity security’s most recently determined net asset value. During the three months ended March 28, 2020, there was no change in the estimated fair value of the equity security. As of March 28, 2020 and December 31, 2019, the equity security had an estimated fair value of $21.8. The COVID-19 pandemic has recently had an adverse impact on the global financial markets. A prolonged adverse impact of the COVID-19 pandemic could result in a decline in the equity security’s estimated fair value and, thus, a resulting charge to earnings in a future period. During the three months ended March 30, 2019, we recorded a gain of $6.2 to “Other income (expense), net” in our accompanying condensed consolidated statements of operations to reflect an increase in the estimated fair value of the equity security. In addition, during the three months ended March 30, 2019, we received a distribution of $2.6, which is included within “Cash flows from operating activities” in our condensed consolidated statements of cash flows. We are restricted from transferring this investment without approval of the manager of the investee. Mezzanine Equity To the extent the noncontrolling interests' put option price is correlated with the estimated fair value of the subsidiary, we use the market method to estimate the fair values of noncontrolling interest put options reported in “Mezzanine equity” using unobservable inputs (Level 3) on a recurring basis. Changes to the noncontrolling interest put option values are reflected as adjustments to “Mezzanine equity” and “Accumulated deficit.” Refer to Note 14 for further discussion. Goodwill, Indefinite-Lived Intangible and Other Long-Lived Assets Certain of our non-financial assets are subject to impairment analysis, including long-lived assets, indefinite-lived intangible assets and goodwill. We review the carrying amounts of such assets whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable or at least annually for indefinite-lived intangible assets and goodwill. Any resulting impairment would require that the asset be recorded at its fair value. During the three months ended March 28, 2020, the Company recorded a pre-tax loss of $8.5 to reduce the carrying value of the net assets of its Disposal Group, including relevant foreign currency translation adjustment balances, to the net proceeds expected to be realized upon finalization of the purchase price with the Buyer (see Note 3 for further details regarding the Sale Agreement). As the loss on Disposal Group was determined not to be attributable to any individual components of the Company’s net assets of discontinued operations, the aggregate loss has been reflected as a valuation allowance against the total assets of the Disposal Group as of March 28, 2020. The fair value of the Company’s Disposal Group reflects terms of the Sale Agreement with the Buyer as noted above and, as such, has been valued using unobservable inputs (Level 3). At March 30, 2020, no other significant non-financial assets or liabilities of the Company were required to be measured at fair value on a recurring or non-recurring basis. See Note 3 for further information regarding the loss on Disposal Group and the associated valuation allowance, and Note 9 for further information regarding goodwill and indefinite-lived intangible assets, and the Company’s consideration of the effects of the COVID-19 pandemic on its evaluation of the carrying values of such long-lived assets as of March 28, 2020. Indebtedness and Other The estimated fair values of other financial liabilities (excluding finance leases and deferred financing fees) not measured at fair value on a recurring basis as of March 28, 2020 and December 31, 2019 were as follows:
(1)Carrying amount reflected herein excludes related deferred financing fees. The following methods and assumptions were used in estimating the fair value of these financial instruments: •The fair values of the senior notes were determined using Level 2 inputs within the fair value hierarchy and were based on quoted market prices for the same or similar instruments or on current rates offered to us for debt with similar maturities, subordination and credit default expectations. •The fair value of amounts outstanding under our term loan approximated carrying value due primarily to the variable-rate nature and credit spread of this instrument, when compared to other similar instruments. •The fair values of other indebtedness approximated carrying value due primarily to the short-term nature of these instruments. The carrying amounts of cash and equivalents, receivables and contract assets reported in our condensed consolidated balance sheets as of March 28, 2020 and December 31, 2019 approximate fair value due to the short-term nature of those instruments.
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DERIVATIVE FINANCIAL INSTRUMENTS |
3 Months Ended |
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Mar. 28, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS We manufacture and sell our products in a number of countries and, as a result, are exposed to movements in foreign currency (“FX”) exchange rates. Our objective is to preserve the economic value of non-functional currency-denominated cash flows and to minimize the impact of changes as a result of currency fluctuations. Our principal currency exposures relate to the Euro, Chinese Yuan and British Pound. We had FX forward contracts with an aggregate notional amount of $29.2 and $83.3 outstanding as of March 28, 2020 and December 31, 2019, respectively, with all such contracts scheduled to mature within one year. We also had FX embedded derivatives with an aggregate notional amount of $2.4 and $0.9 at March 28, 2020 and December 31, 2019, respectively, with all such contracts scheduled to mature within one year. There were unrealized losses of $0.3 and $0.2, net of taxes, recorded in accumulated other comprehensive loss related to FX forward contracts as of March 28, 2020 and December 31, 2019, respectively. The net losses recorded in “Other income (expense), net” related to FX losses totaled $0.8 and $0.6 for the three months ended March 28, 2020 and March 30, 2019, respectively. We enter into arrangements designed to provide the right of setoff in the event of counterparty default or insolvency, and have elected to offset the fair values of our FX forward contracts in our condensed consolidated balance sheets. The gross fair values of our FX forward contracts and FX embedded derivatives, in aggregate, were $0.0 and $0.3 (gross assets) and $0.1 and $0.0 (gross liabilities) at March 28, 2020 and December 31, 2019, respectively.
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DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 28, 2020 |
Mar. 30, 2019 |
Dec. 31, 2019 |
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FX forward contracts | |||
Derivative [Line Items] | |||
Aggregate notional amount | $ 29.2 | $ 83.3 | |
Period contracts are scheduled to mature | 1 year | ||
Unrealized gains (losses), net of tax, recorded in AOCI | $ (0.3) | (0.2) | |
FX embedded derivatives | |||
Derivative [Line Items] | |||
Aggregate notional amount | 2.4 | 0.9 | |
Forward contracts | |||
Derivative [Line Items] | |||
Fair value of derivative contract, gross assets | 0.0 | 0.3 | |
Fair value of derivative contract, gross liabilities | 0.1 | $ 0.0 | |
Forward contracts | Other income (expense), net | |||
Derivative [Line Items] | |||
Net gains (losses) recorded in other income (expense), net | $ (0.8) | $ (0.6) | |
Minimum | FX embedded derivatives | |||
Derivative [Line Items] | |||
Period contracts are scheduled to mature | 1 year |
NEW ACCOUNTING PRONOUNCEMENTS - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Mar. 28, 2020 |
Mar. 30, 2019 |
Dec. 31, 2019 |
Jan. 01, 2018 |
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New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Adoption of lease accounting standard | $ (8.5) | |||
Accounts receivable, net | $ 220.5 | $ 243.1 | ||
Income tax benefit | $ (0.9) | $ 10.7 | ||
Accumulated Deficit | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Adoption of lease accounting standard | $ (8.5) |
DISCONTINUED OPERATIONS - Schedule of Significant Non-Cash Operating Items (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 28, 2020 |
Mar. 30, 2019 |
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Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Depreciation and amortization | $ 9.8 | $ 9.6 |
Capital expenditures | (4.7) | (5.3) |
Discontinued operations | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Loss on Disposal Group | 8.5 | 0.0 |
Depreciation and amortization | 0.0 | 4.2 |
Capital expenditures | $ (5.5) | $ (1.6) |
REVENUE FROM CONTRACTS WITH CUSTOMERS - Contract Assets and Liabilities and Changes in Balances (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 28, 2020 |
Dec. 31, 2019 |
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Revenue from Contract with Customer [Abstract] | ||
Contract accounts receivable | $ 215.7 | $ 231.9 |
Change in contract accounts receivable | (16.2) | |
Contract assets | 28.8 | 27.3 |
Change in contract assets | 1.5 | |
Contract liabilities | (112.4) | (116.3) |
Change in contract liabilities | 3.9 | |
Net contract balance | 132.1 | $ 142.9 |
Change in net contract balance | $ (10.8) |
LITIGATION, CONTINGENT LIABILITIES AND OTHER MATTERS - Narrative (Details) - USD ($) $ in Millions |
Mar. 28, 2020 |
Dec. 31, 2019 |
---|---|---|
Commitments and Contingencies Disclosure [Abstract] | ||
Exercise value of put option outstanding | $ 18.7 | $ 20.3 |
Value options exercisable | $ 10.6 |
GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Mar. 28, 2020 |
Mar. 30, 2019 |
Dec. 31, 2019 |
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Goodwill [Line Items] | |||
Net carrying value of intangible assets with determinable lives | $ 38,900,000 | $ 43,400,000 | |
Impairment charges recorded | 0 | $ 0 | |
Trademarks with indefinite lives | |||
Goodwill [Line Items] | |||
Trademarks with indefinite lives | 158,500,000 | $ 164,700,000 | |
Food and Beverage | |||
Goodwill [Line Items] | |||
Net carrying value of intangible assets with determinable lives | 25,000,000.0 | ||
Food and Beverage | Trademarks with indefinite lives | |||
Goodwill [Line Items] | |||
Trademarks with indefinite lives | 92,900,000 | ||
Industrial | |||
Goodwill [Line Items] | |||
Net carrying value of intangible assets with determinable lives | 13,900,000 | ||
Industrial | Trademarks with indefinite lives | |||
Goodwill [Line Items] | |||
Trademarks with indefinite lives | $ 65,600,000 |
RESTRUCTURING AND OTHER RELATED CHARGES - Analysis of Restructuring Liabilities (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 28, 2020 |
Mar. 30, 2019 |
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Restructuring Liabilities | ||
Balance at beginning of year | $ 7.6 | $ 7.1 |
Restructuring and other related charges | 2.3 | 4.7 |
Utilization — cash | (2.3) | (0.4) |
Currency translation adjustment and other | (0.2) | 0.1 |
Balance at end of period | 7.4 | 11.5 |
Corporate | ||
Restructuring Liabilities | ||
Asset impairment and non-cash charges | $ 0.3 | $ 0.3 |
LEASES - Components of Lease Expense (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 28, 2020 |
Mar. 30, 2019 |
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Leases [Abstract] | ||
Operating lease cost | $ 4.8 | $ 5.0 |
Short-term lease cost | 0.5 | 0.3 |
Variable lease cost | 0.1 | 0.4 |
Total lease cost | 5.4 | $ 5.7 |
Amortization of ROU assets | $ 0.1 |
REVENUE FROM CONTRACTS WITH CUSTOMER (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of revenue by reportable segments | The following table provides revenues recognized over time by reportable segment for the three months ended March 28, 2020 and March 30, 2019:
(1)Includes $37.9 and $62.6 for the three months ended March 28, 2020 and March 30, 2019, respectively, of revenue realized from the sale of highly engineered Food and Beverage systems.
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Contract assets and liabilities and changes in balances | Our contract accounts receivable, assets and liabilities, and changes in such balances, were as follows:
(1) The $10.8 increase in our net contract balance from December 31, 2019 to March 28, 2020 was primarily due to the timing of advance and milestone payments received on certain Food and Beverage contracts recognized over time, and of performance obligations satisfied and the related revenue recognized on such contracts. (2) Included in “Accounts receivable, net” in our condensed consolidated balance sheets. Amounts are presented before consideration of the allowance for uncollectible accounts.
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GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in the carrying amount of goodwill, by reportable segment | The changes in the carrying amount of goodwill by reportable segment during the three months ended March 28, 2020 were as follows:
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Schedule of finite-lived intangible assets | Identifiable intangible assets were as follows:
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Schedule of indefinite-lived intangible assets | Identifiable intangible assets were as follows:
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