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June 30, 2013 | December 31, 2012 | ||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 680.6 | $ | 781.3 | |||
Accounts and notes receivable, net | 1,286.1 | 924.6 | |||||
Inventories, net | 2,043.0 | 1,703.1 | |||||
Deferred tax assets | 211.5 | 243.5 | |||||
Other current assets | 295.8 | 302.2 | |||||
Total current assets | 4,517.0 | 3,954.7 | |||||
Property, plant and equipment, net | 1,410.9 | 1,406.1 | |||||
Investment in affiliates | 391.4 | 390.3 | |||||
Deferred tax assets | 41.1 | 40.0 | |||||
Other assets | 121.6 | 131.2 | |||||
Intangible assets, net | 589.4 | 607.1 | |||||
Goodwill | 1,163.6 | 1,192.4 | |||||
Total assets | $ | 8,235.0 | $ | 7,721.8 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current Liabilities: | |||||||
Current portion of long-term debt | $ | 88.1 | $ | 59.1 | |||
Convertible senior subordinated notes | 196.7 | 192.1 | |||||
Accounts payable | 1,063.8 | 888.3 | |||||
Accrued expenses | 1,286.8 | 1,226.5 | |||||
Other current liabilities | 139.7 | 98.8 | |||||
Total current liabilities | 2,775.1 | 2,464.8 | |||||
Long-term debt, less current portion | 1,077.5 | 1,035.6 | |||||
Pensions and postretirement health care benefits | 309.8 | 331.6 | |||||
Deferred tax liabilities | 237.9 | 242.7 | |||||
Other noncurrent liabilities | 157.1 | 149.1 | |||||
Total liabilities | 4,557.4 | 4,223.8 | |||||
Commitments and contingencies (Note 14) | |||||||
Temporary equity | 7.3 | 16.5 | |||||
Stockholders’ Equity: | |||||||
AGCO Corporation stockholders’ equity: | |||||||
Preferred stock; $0.01 par value, 1,000,000 shares authorized, no shares issued or outstanding in 2013 and 2012 | — | — | |||||
Common stock; $0.01 par value, 150,000,000 shares authorized, 97,344,295 and 96,815,998 shares issued and outstanding at June 30, 2013 and December 31, 2012, respectively | 1.0 | 1.0 | |||||
Additional paid-in capital | 1,098.3 | 1,082.9 | |||||
Retained earnings | 3,156.0 | 2,843.7 | |||||
Accumulated other comprehensive loss | (619.1 | ) | (479.4 | ) | |||
Total AGCO Corporation stockholders’ equity | 3,636.2 | 3,448.2 | |||||
Noncontrolling interests | 34.1 | 33.3 | |||||
Total stockholders’ equity | 3,670.3 | 3,481.5 | |||||
Total liabilities, temporary equity and stockholders’ equity | $ | 8,235.0 | $ | 7,721.8 |
Three Months Ended June 30, | |||||||
2013 | 2012 | ||||||
Net sales | $ | 3,048.2 | $ | 2,690.1 | |||
Cost of goods sold | 2,337.9 | 2,078.7 | |||||
Gross profit | 710.3 | 611.4 | |||||
Selling, general and administrative expenses | 279.7 | 255.0 | |||||
Engineering expenses | 91.4 | 79.0 | |||||
Amortization of intangibles | 12.1 | 12.5 | |||||
Income from operations | 327.1 | 264.9 | |||||
Interest expense, net | 13.5 | 14.7 | |||||
Other expense, net | 10.2 | 6.1 | |||||
Income before income taxes and equity in net earnings of affiliates | 303.4 | 244.1 | |||||
Income tax provision | 104.4 | 57.3 | |||||
Income before equity in net earnings of affiliates | 199.0 | 186.8 | |||||
Equity in net earnings of affiliates | 14.1 | 15.3 | |||||
Net income | 213.1 | 202.1 | |||||
Net loss attributable to noncontrolling interests | 0.6 | 2.8 | |||||
Net income attributable to AGCO Corporation and subsidiaries | $ | 213.7 | $ | 204.9 | |||
Net income per common share attributable to AGCO Corporation and subsidiaries: | |||||||
Basic | $ | 2.20 | $ | 2.11 | |||
Diluted | $ | 2.15 | $ | 2.08 | |||
Cash dividends declared and paid per common share | $ | 0.10 | $ | — | |||
Weighted average number of common and common equivalent shares outstanding: | |||||||
Basic | 97.3 | 97.2 | |||||
Diluted | 99.3 | 98.4 |
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
Net sales | $ | 5,451.3 | $ | 4,963.8 | |||
Cost of goods sold | 4,207.9 | 3,859.4 | |||||
Gross profit | 1,243.4 | 1,104.4 | |||||
Selling, general and administrative expenses | 535.4 | 493.9 | |||||
Engineering expenses | 179.4 | 151.1 | |||||
Amortization of intangibles | 24.1 | 24.7 | |||||
Income from operations | 504.5 | 434.7 | |||||
Interest expense, net | 26.1 | 27.7 | |||||
Other expense, net | 13.9 | 10.5 | |||||
Income before income taxes and equity in net earnings of affiliates | 464.5 | 396.5 | |||||
Income tax provision | 157.3 | 100.5 | |||||
Income before equity in net earnings of affiliates | 307.2 | 296.0 | |||||
Equity in net earnings of affiliates | 23.0 | 27.3 | |||||
Net income | 330.2 | 323.3 | |||||
Net loss attributable to noncontrolling interests | 1.5 | 1.8 | |||||
Net income attributable to AGCO Corporation and subsidiaries | $ | 331.7 | $ | 325.1 | |||
Net income per common share attributable to AGCO Corporation and subsidiaries: | |||||||
Basic | $ | 3.41 | $ | 3.35 | |||
Diluted | $ | 3.34 | $ | 3.29 | |||
Cash dividends declared and paid per common share | $ | 0.20 | $ | — | |||
Weighted average number of common and common equivalent shares outstanding: | |||||||
Basic | 97.2 | 97.1 | |||||
Diluted | 99.2 | 98.8 |
Three Months Ended June 30, | |||||||
2013 | 2012 | ||||||
Net income | $ | 213.1 | $ | 202.1 | |||
Other comprehensive loss, net of reclassification adjustments: | |||||||
Foreign currency translation adjustments | (98.5 | ) | (200.4 | ) | |||
Defined benefit pension plans, net of tax | 2.4 | 2.8 | |||||
Unrealized loss on derivatives, net of tax | (2.0 | ) | (3.6 | ) | |||
Other comprehensive loss, net of reclassification adjustments | (98.1 | ) | (201.2 | ) | |||
Comprehensive income | 115.0 | 0.9 | |||||
Comprehensive loss attributable to noncontrolling interests | 0.9 | 4.2 | |||||
Comprehensive income attributable to AGCO Corporation and subsidiaries | $ | 115.9 | $ | 5.1 |
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
Net income | $ | 330.2 | $ | 323.3 | |||
Other comprehensive loss, net of reclassification adjustments: | |||||||
Foreign currency translation adjustments | (142.9 | ) | (125.6 | ) | |||
Defined benefit pension plans, net of tax | 4.8 | 5.0 | |||||
Unrealized loss on derivatives, net of tax | (1.8 | ) | (1.1 | ) | |||
Other comprehensive loss, net of reclassification adjustments | (139.9 | ) | (121.7 | ) | |||
Comprehensive income | 190.3 | 201.6 | |||||
Comprehensive loss attributable to noncontrolling interests | 1.7 | 3.2 | |||||
Comprehensive income attributable to AGCO Corporation and subsidiaries | $ | 192.0 | $ | 204.8 |
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 330.2 | $ | 323.3 | |||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||
Depreciation | 101.4 | 85.7 | |||||
Deferred debt issuance cost amortization | 1.8 | 1.7 | |||||
Amortization of intangibles | 24.1 | 24.7 | |||||
Amortization of debt discount | 4.6 | 4.3 | |||||
Stock compensation | 28.1 | 19.2 | |||||
Equity in net earnings of affiliates, net of cash received | (12.2 | ) | (18.5 | ) | |||
Deferred income tax provision | 27.7 | 2.4 | |||||
Other | 0.1 | (0.2 | ) | ||||
Changes in operating assets and liabilities, net of effects from purchase of businesses: | |||||||
Accounts and notes receivable, net | (389.8 | ) | (248.2 | ) | |||
Inventories, net | (404.7 | ) | (508.1 | ) | |||
Other current and noncurrent assets | 2.9 | (35.4 | ) | ||||
Accounts payable | 214.9 | 91.7 | |||||
Accrued expenses | 107.4 | 42.2 | |||||
Other current and noncurrent liabilities | 28.5 | 27.0 | |||||
Total adjustments | (265.2 | ) | (511.5 | ) | |||
Net cash provided by (used in) operating activities | 65.0 | (188.2 | ) | ||||
Cash flows from investing activities: | |||||||
Purchases of property, plant and equipment | (174.2 | ) | (151.1 | ) | |||
Proceeds from sale of property, plant and equipment | 2.2 | 0.2 | |||||
Purchase of businesses, net of cash acquired | (0.1 | ) | (2.4 | ) | |||
Investments in consolidated affiliates, net of cash acquired | — | (20.1 | ) | ||||
Investments in unconsolidated affiliates, net | — | (7.9 | ) | ||||
Restricted cash and other | — | (2.0 | ) | ||||
Net cash used in investing activities | (172.1 | ) | (183.3 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from debt obligations, net | 91.7 | 42.8 | |||||
Payment of debt issuance costs | — | (0.1 | ) | ||||
Purchases and retirement of common stock | (1.0 | ) | — | ||||
Payment of minimum tax withholdings on stock compensation | (15.9 | ) | — | ||||
(Distribution to) investment by noncontrolling interests | (2.1 | ) | (0.3 | ) | |||
Payment of dividends to stockholders | (19.4 | ) | — | ||||
Net cash provided by financing activities | 53.3 | 42.4 | |||||
Effects of exchange rate changes on cash and cash equivalents | (46.9 | ) | (1.9 | ) | |||
Decrease in cash and cash equivalents | (100.7 | ) | (331.0 | ) | |||
Cash and cash equivalents, beginning of period | 781.3 | 724.4 | |||||
Cash and cash equivalents, end of period | $ | 680.6 | $ | 393.4 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Cost of goods sold | $ | 1.3 | $ | 0.6 | $ | 1.9 | $ | 1.2 | |||||||
Selling, general and administrative expenses | 18.5 | 10.4 | 26.4 | 18.2 | |||||||||||
Total stock compensation expense | $ | 19.8 | $ | 11.0 | $ | 28.3 | $ | 19.4 |
Shares awarded but not earned at January 1 | 2,509,323 | |
Shares awarded | 1,001,400 | |
Shares forfeited or unearned | (195,016 | ) |
Shares earned | (41,388 | ) |
Shares awarded but not earned at June 30 | 3,274,319 |
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
Weighted average grant-date fair value | $ | 20.67 | $ | 22.50 | |||
Weighted average assumptions under Black-Scholes option model: | |||||||
Expected life of awards (years) | 5.5 | 5.5 | |||||
Risk-free interest rate | 0.8 | % | 0.8 | % | |||
Expected volatility | 50.6 | % | 51.0 | % | |||
Expected dividend yield | 0.8 | % | — | % |
SSARs outstanding at January 1 | 1,073,087 | ||
SSARs granted | 280,900 | ||
SSARs exercised | (166,149 | ) | |
SSARs canceled or forfeited | (43,332 | ) | |
SSARs outstanding at June 30 | 1,144,506 | ||
SSAR price ranges per share: | |||
Granted | $ | 51.84 | |
Exercised | 21.45-52.94 | ||
Canceled or forfeited | 21.45-56.98 | ||
Weighted average SSAR exercise prices per share: | |||
Granted | $ | 51.84 | |
Exercised | 31.66 | ||
Canceled or forfeited | 48.63 | ||
Outstanding at June 30 | 45.22 |
SSARs Outstanding | SSARs Exercisable | |||||||||||||||
Range of Exercise Prices | Number of Shares | Weighted Average Remaining Contractual Life (Years) | Weighted Average Exercise Price | Number of Shares | Weighted Average Exercise Price | |||||||||||
$ 21.45 – $32.01 | 179,594 | 2.6 | $ | 21.85 | 175,344 | $ | 21.61 | |||||||||
$ 33.65 – $44.55 | 174,535 | 3.1 | $ | 34.56 | 131,110 | $ | 34.66 | |||||||||
$ 47.89 – $56.98 | 790,377 | 5.2 | $ | 52.89 | 246,102 | $ | 54.27 | |||||||||
1,144,506 | 552,556 | $ | 39.25 |
Trademarks and Tradenames | Customer Relationships | Patents and Technology | Land Use Rights | Total | |||||||||||||||
Gross carrying amounts: | |||||||||||||||||||
Balance as of December 31, 2012 | $ | 118.9 | $ | 507.8 | $ | 87.6 | $ | 8.7 | $ | 723.0 | |||||||||
Additions | — | — | — | 10.8 | 10.8 | ||||||||||||||
Foreign currency translation | (0.9 | ) | (7.4 | ) | (1.0 | ) | 0.1 | (9.2 | ) | ||||||||||
Balance as of June 30, 2013 | $ | 118.0 | $ | 500.4 | $ | 86.6 | $ | 19.6 | $ | 724.6 |
Trademarks and Tradenames | Customer Relationships | Patents and Technology | Land Use Rights | Total | |||||||||||||||
Accumulated amortization: | |||||||||||||||||||
Balance as of December 31, 2012 | $ | 24.9 | $ | 126.6 | $ | 54.1 | $ | 2.5 | $ | 208.1 | |||||||||
Amortization expense | 3.1 | 19.4 | 1.5 | 0.1 | 24.1 | ||||||||||||||
Foreign currency translation | (0.1 | ) | (4.6 | ) | (0.7 | ) | — | (5.4 | ) | ||||||||||
Balance as of June 30, 2013 | $ | 27.9 | $ | 141.4 | $ | 54.9 | $ | 2.6 | $ | 226.8 |
Trademarks and Tradenames | |||
Indefinite-lived intangible assets: | |||
Balance as of December 31, 2012 | $ | 92.2 | |
Foreign currency translation | (0.6 | ) | |
Balance as of June 30, 2013 | $ | 91.6 |
North America | South America | Europe/Africa/ Middle East | Asia/ Pacific | Consolidated | |||||||||||||||
Balance as of December 31, 2012 | $ | 416.7 | $ | 219.3 | $ | 498.3 | $ | 58.1 | $ | 1,192.4 | |||||||||
Adjustments related to income taxes | — | — | (4.0 | ) | — | (4.0 | ) | ||||||||||||
Foreign currency translation | — | (16.3 | ) | (8.4 | ) | (0.1 | ) | (24.8 | ) | ||||||||||
Balance as of June 30, 2013 | $ | 416.7 | $ | 203.0 | $ | 485.9 | $ | 58.0 | $ | 1,163.6 |
June 30, 2013 | December 31, 2012 | ||||||
11/4% Convertible senior subordinated notes due 2036 | $ | 196.7 | $ | 192.1 | |||
41/2% Senior term loan due 2016 | 260.4 | 264.2 | |||||
57/8% Senior notes due 2021 | 300.0 | 300.0 | |||||
Credit facility, expiring 2016 | 512.5 | 465.0 | |||||
Other long-term debt | 92.7 | 65.5 | |||||
1,362.3 | 1,286.8 | ||||||
Less: Current portion of long-term debt | (88.1 | ) | (59.1 | ) | |||
11/4% Convertible senior subordinated notes due 2036 | (196.7 | ) | (192.1 | ) | |||
Total indebtedness, less current portion | $ | 1,077.5 | $ | 1,035.6 |
June 30, 2013 | December 31, 2012 | ||||||
Carrying amount of the equity component | $ | 54.3 | $ | 54.3 | |||
Principal amount of the liability component | $ | 201.3 | $ | 201.3 | |||
Less: unamortized discount | (4.6 | ) | (9.2 | ) | |||
Net carrying amount | $ | 196.7 | $ | 192.1 |
June 30, 2013 | December 31, 2012 | ||||||
Finished goods | $ | 818.6 | $ | 598.5 | |||
Repair and replacement parts | 567.8 | 505.6 | |||||
Work in process | 145.3 | 137.5 | |||||
Raw materials | 511.3 | 461.5 | |||||
Inventories, net | $ | 2,043.0 | $ | 1,703.1 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Balance at beginning of period | $ | 266.4 | $ | 257.1 | $ | 256.9 | $ | 240.5 | |||||||
Acquisitions | — | — | — | 0.1 | |||||||||||
Accruals for warranties issued during the period | 66.2 | 45.7 | 109.5 | 91.3 | |||||||||||
Settlements made (in cash or in kind) during the period | (38.6 | ) | (37.3 | ) | (67.1 | ) | (74.0 | ) | |||||||
Foreign currency translation | (0.2 | ) | (10.3 | ) | (5.5 | ) | (2.7 | ) | |||||||
Balance at June 30 | $ | 293.8 | $ | 255.2 | $ | 293.8 | $ | 255.2 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Basic net income per share: | |||||||||||||||
Net income attributable to AGCO Corporation and subsidiaries | $ | 213.7 | $ | 204.9 | $ | 331.7 | $ | 325.1 | |||||||
Weighted average number of common shares outstanding | 97.3 | 97.2 | 97.2 | 97.1 | |||||||||||
Basic net income per share attributable to AGCO Corporation and subsidiaries | $ | 2.20 | $ | 2.11 | $ | 3.41 | $ | 3.35 | |||||||
Diluted net income per share: | |||||||||||||||
Net income attributable to AGCO Corporation and subsidiaries | $ | 213.7 | $ | 204.9 | $ | 331.7 | $ | 325.1 | |||||||
Weighted average number of common shares outstanding | 97.3 | 97.2 | 97.2 | 97.1 | |||||||||||
Dilutive SSARs, performance share awards and restricted stock awards | 0.9 | 1.0 | 0.9 | 1.1 | |||||||||||
Weighted average assumed conversion of contingently convertible senior subordinated notes | 1.1 | 0.2 | 1.1 | 0.6 | |||||||||||
Weighted average number of common shares and common share equivalents outstanding for purposes of computing diluted net income per share | 99.3 | 98.4 | 99.2 | 98.8 | |||||||||||
Diluted net income per share attributable to AGCO Corporation and subsidiaries | $ | 2.15 | $ | 2.08 | $ | 3.34 | $ | 3.29 |
Before-Tax Amount | Income Tax | After-Tax Amount | ||||||||||
Accumulated derivative net gains as of December 31, 2012 | $ | 1.1 | $ | 0.4 | $ | 0.7 | ||||||
Net changes in fair value of derivatives | (0.9 | ) | (0.7 | ) | (0.2 | ) | ||||||
Net gains reclassified from accumulated other comprehensive loss into income | (1.7 | ) | (0.1 | ) | (1.6 | ) | ||||||
Accumulated derivative net losses as of June 30, 2013 | $ | (1.5 | ) | $ | (0.4 | ) | $ | (1.1 | ) |
Asset Derivatives As of June 30, 2013 | Liability Derivatives As of June 30, 2013 | |||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||||
Derivative instruments designated as hedging instruments: | ||||||||||||
Foreign currency contracts | Other current assets | $ | 0.7 | Other current liabilities | $ | 1.9 | ||||||
Derivative instruments not designated as hedging instruments: | ||||||||||||
Foreign currency contracts | Other current assets | 9.1 | Other current liabilities | 12.1 | ||||||||
Total derivative instruments | $ | 9.8 | $ | 14.0 |
Asset Derivatives As of December 31, 2012 | Liability Derivatives As of December 31, 2012 | |||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||||
Derivative instruments designated as hedging instruments: | ||||||||||||
Foreign currency contracts | Other current assets | $ | 1.5 | Other current liabilities | $ | — | ||||||
Derivative instruments not designated as hedging instruments: | ||||||||||||
Foreign currency contracts | Other current assets | 5.5 | Other current liabilities | 5.1 | ||||||||
Total derivative instruments | $ | 7.0 | $ | 5.1 |
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests | Total Stockholders’ Equity | Temporary Equity | |||||||||||||||||||||
Balance, December 31, 2012 | $ | 1.0 | $ | 1,082.9 | $ | 2,843.7 | $ | (479.4 | ) | $ | 33.3 | $ | 3,481.5 | $ | 16.5 | ||||||||||||
Stock compensation | — | 28.1 | — | — | — | 28.1 | — | ||||||||||||||||||||
Issuance of performance award stock | — | (14.7 | ) | — | — | — | (14.7 | ) | — | ||||||||||||||||||
SSARs exercised | — | (1.6 | ) | — | — | — | (1.6 | ) | — | ||||||||||||||||||
Distribution to noncontrolling interest | — | — | — | — | (2.1 | ) | (2.1 | ) | — | ||||||||||||||||||
Comprehensive income: | |||||||||||||||||||||||||||
Net income (loss) | — | — | 331.7 | — | 2.9 | 334.6 | (4.4 | ) | |||||||||||||||||||
Other comprehensive loss, net of reclassification adjustments: | |||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | (142.7 | ) | — | (142.7 | ) | (0.2 | ) | |||||||||||||||||
Defined benefit pension plans, net of tax | — | — | — | 4.8 | — | 4.8 | — | ||||||||||||||||||||
Unrealized loss on derivatives, net of tax | — | — | — | (1.8 | ) | — | (1.8 | ) | — | ||||||||||||||||||
Payment of dividends to stockholders | — | — | (19.4 | ) | — | — | (19.4 | ) | — | ||||||||||||||||||
Purchases and retirement of common stock | — | (1.0 | ) | — | — | — | (1.0 | ) | — | ||||||||||||||||||
Reclassification from temporary equity - Equity component of convertible senior subordinated notes | — | 4.6 | — | — | — | 4.6 | (4.6 | ) | |||||||||||||||||||
Balance, June 30, 2013 | $ | 1.0 | $ | 1,098.3 | $ | 3,156.0 | $ | (619.1 | ) | $ | 34.1 | $ | 3,670.3 | $ | 7.3 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net loss | $ | (0.6 | ) | $ | (2.8 | ) | $ | (1.5 | ) | $ | (1.8 | ) | |||
Other comprehensive loss: | |||||||||||||||
Foreign currency translation adjustments | (0.3 | ) | (1.4 | ) | (0.2 | ) | (1.4 | ) | |||||||
Total comprehensive loss | $ | (0.9 | ) | $ | (4.2 | ) | $ | (1.7 | ) | $ | (3.2 | ) |
Defined Benefit Pension Plans | Deferred Gains on Derivatives | Cumulative Translation Adjustment | Total | ||||||||||||
Accumulated other comprehensive (loss) income, December 31, 2012 | $ | (262.9 | ) | $ | 0.7 | $ | (217.2 | ) | $ | (479.4 | ) | ||||
Other comprehensive loss before reclassifications | — | (0.2 | ) | (142.7 | ) | (142.9 | ) | ||||||||
Net losses (gains) reclassified from accumulated other comprehensive loss | 4.8 | (1.6 | ) | — | 3.2 | ||||||||||
Other comprehensive loss, net of reclassification adjustments | 4.8 | (1.8 | ) | (142.7 | ) | (139.7 | ) | ||||||||
Accumulated other comprehensive loss, June 30, 2013 | $ | (258.1 | ) | $ | (1.1 | ) | $ | (359.9 | ) | $ | (619.1 | ) |
Amount Reclassified from Accumulated Other Comprehensive Loss(1) | ||||||||||
Details about Accumulated Other Comprehensive Loss Components | Three months ended June 30, 2013 | Six months ended June 30, 2013 | Affected Line Item within the Condensed Consolidated Statements of Operations | |||||||
Net gains on cash flow hedges | $ | (1.1 | ) | $ | (1.7 | ) | Cost of goods sold | |||
— | 0.1 | Income tax provision | ||||||||
$ | (1.1 | ) | $ | (1.6 | ) | Net of tax | ||||
Defined benefit pension plans | ||||||||||
Amortization of net actuarial loss | $ | 3.0 | $ | 6.1 | (2) | |||||
Amortization of prior service cost | 0.3 | 0.5 | (2) | |||||||
3.3 | 6.6 | Total before taxes | ||||||||
(0.9 | ) | (1.8 | ) | Income tax provision | ||||||
$ | 2.4 | $ | 4.8 | Net of tax | ||||||
Net losses reclassified from accumulated other comprehensive loss | $ | 1.3 | $ | 3.2 |
Three Months Ended June 30, | ||||||||
Pension benefits | 2013 | 2012 | ||||||
Service cost | $ | 4.6 | $ | 4.3 | ||||
Interest cost | 9.1 | 9.7 | ||||||
Expected return on plan assets | (9.7 | ) | (8.9 | ) | ||||
Amortization of net actuarial loss | 2.8 | 2.5 | ||||||
Amortization of prior service cost | 0.2 | 0.2 | ||||||
Net periodic pension cost | $ | 7.0 | $ | 7.8 |
Three Months Ended June 30, | ||||||||
Postretirement benefits | 2013 | 2012 | ||||||
Interest cost | $ | 0.5 | $ | 0.4 | ||||
Amortization of net actuarial loss | 0.2 | 0.1 | ||||||
Amortization of prior service cost | 0.1 | — | ||||||
Net periodic postretirement benefit cost | $ | 0.8 | $ | 0.5 |
Six Months Ended June 30, | ||||||||
Pension benefits | 2013 | 2012 | ||||||
Service cost | $ | 9.2 | $ | 8.6 | ||||
Interest cost | 18.3 | 19.5 | ||||||
Expected return on plan assets | (19.5 | ) | (17.8 | ) | ||||
Amortization of net actuarial loss | 5.8 | 4.9 | ||||||
Amortization of prior service cost | 0.4 | 0.4 | ||||||
Net periodic pension cost | $ | 14.2 | $ | 15.6 |
Six Months Ended June 30, | ||||||||
Postretirement benefits | 2013 | 2012 | ||||||
Service cost | $ | 0.1 | $ | 0.1 | ||||
Interest cost | 0.9 | 0.8 | ||||||
Amortization of net actuarial loss | 0.3 | 0.2 | ||||||
Amortization of prior service cost (credit) | 0.1 | (0.1 | ) | |||||
Net periodic postretirement benefit cost | $ | 1.4 | $ | 1.0 |
Before-Tax Amount | Income Tax | After-Tax Amount | ||||||||||
Accumulated other comprehensive loss as of December 31, 2012 | $ | (355.2 | ) | $ | (92.3 | ) | $ | (262.9 | ) | |||
Amortization of net actuarial loss | 6.1 | 1.6 | 4.5 | |||||||||
Amortization of prior service cost | 0.5 | 0.2 | 0.3 | |||||||||
Accumulated other comprehensive loss as of June 30, 2013 | $ | (348.6 | ) | $ | (90.5 | ) | $ | (258.1 | ) |
Three Months Ended June 30, | North America | South America | Europe/Africa/ Middle East | Asia/ Pacific | Consolidated | |||||||||||||||
2013 | ||||||||||||||||||||
Net sales | $ | 788.9 | $ | 540.0 | $ | 1,599.0 | $ | 120.3 | $ | 3,048.2 | ||||||||||
Income (loss) from operations | 121.6 | 59.7 | 204.9 | (0.8 | ) | 385.4 | ||||||||||||||
Depreciation | 12.2 | 6.3 | 30.5 | 2.0 | 51.0 | |||||||||||||||
Capital expenditures | 12.6 | 12.6 | 48.5 | 6.5 | 80.2 | |||||||||||||||
2012 | ||||||||||||||||||||
Net sales | $ | 733.4 | $ | 448.5 | $ | 1,406.9 | $ | 101.3 | $ | 2,690.1 | ||||||||||
Income from operations | 95.7 | 41.7 | 170.0 | 5.1 | 312.5 | |||||||||||||||
Depreciation | 9.6 | 5.7 | 25.5 | 1.5 | 42.3 | |||||||||||||||
Capital expenditures | 16.6 | 7.4 | 35.7 | 4.3 | 64.0 |
Six Months Ended June 30, | North America | South America | Europe/Africa/ Middle East | Asia/ Pacific | Consolidated | |||||||||||||||
2013 | ||||||||||||||||||||
Net sales | $ | 1,413.1 | $ | 1,005.7 | $ | 2,792.2 | $ | 240.3 | $ | 5,451.3 | ||||||||||
Income from operations | 193.7 | 108.0 | 304.6 | 4.7 | 611.0 | |||||||||||||||
Depreciation | 24.2 | 12.7 | 60.0 | 4.5 | 101.4 | |||||||||||||||
Capital expenditures | 27.5 | 30.6 | 101.7 | 14.4 | 174.2 | |||||||||||||||
2012 | ||||||||||||||||||||
Net sales | $ | 1,299.9 | $ | 863.9 | $ | 2,606.7 | $ | 193.3 | $ | 4,963.8 | ||||||||||
Income from operations | 145.9 | 65.6 | 305.8 | 6.0 | 523.3 | |||||||||||||||
Depreciation | 19.5 | 11.5 | 51.3 | 3.4 | 85.7 | |||||||||||||||
Capital expenditures | 27.5 | 18.5 | 100.0 | 5.1 | 151.1 | |||||||||||||||
Assets | ||||||||||||||||||||
As of June 30, 2013 | $ | 1,043.5 | $ | 793.2 | $ | 2,441.6 | $ | 306.0 | $ | 4,584.3 | ||||||||||
As of December 31, 2012 | 907.4 | 674.9 | 2,114.2 | 295.8 | 3,992.3 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Segment income from operations | $ | 385.4 | $ | 312.5 | $ | 611.0 | $ | 523.3 | |||||||
Corporate expenses | (27.7 | ) | (24.7 | ) | (56.0 | ) | (45.7 | ) | |||||||
Stock compensation | (18.5 | ) | (10.4 | ) | (26.4 | ) | (18.2 | ) | |||||||
Amortization of intangibles | (12.1 | ) | (12.5 | ) | (24.1 | ) | (24.7 | ) | |||||||
Consolidated income from operations | $ | 327.1 | $ | 264.9 | $ | 504.5 | $ | 434.7 |
June 30, 2013 | December 31, 2012 | ||||||
Segment assets | $ | 4,584.3 | $ | 3,992.3 | |||
Cash and cash equivalents | 680.6 | 781.3 | |||||
Receivables from affiliates | 155.7 | 41.5 | |||||
Investments in affiliates | 391.4 | 390.3 | |||||
Deferred tax assets, other current and noncurrent assets | 670.0 | 716.9 | |||||
Intangible assets, net | 589.4 | 607.1 | |||||
Goodwill | 1,163.6 | 1,192.4 | |||||
Consolidated total assets | $ | 8,235.0 | $ | 7,721.8 |
Three Months Ended June 30, | Change | Change Due to Currency Translation | |||||||||||||||||||
2013 | 2012 | $ | % | $ | % | ||||||||||||||||
North America | $ | 788.9 | $ | 733.4 | $ | 55.5 | 7.6 | % | $ | — | — | % | |||||||||
South America | 540.0 | 448.5 | 91.5 | 20.4 | % | (33.4 | ) | (7.4 | )% | ||||||||||||
Europe/Africa/Middle East | 1,599.0 | 1,406.9 | 192.1 | 13.7 | % | 20.6 | 1.5 | % | |||||||||||||
Asia/Pacific | 120.3 | 101.3 | 19.0 | 18.8 | % | 0.3 | 0.3 | % | |||||||||||||
$ | 3,048.2 | $ | 2,690.1 | $ | 358.1 | 13.3 | % | $ | (12.5 | ) | (0.5 | )% |
Six Months Ended June 30, | Change | Change Due to Currency Translation | |||||||||||||||||||
2013 | 2012 | $ | % | $ | % | ||||||||||||||||
North America | $ | 1,413.1 | $ | 1,299.9 | $ | 113.2 | 8.7 | % | $ | (0.4 | ) | — | % | ||||||||
South America | 1,005.7 | 863.9 | 141.8 | 16.4 | % | (92.8 | ) | (10.7 | )% | ||||||||||||
Europe/Africa/Middle East | 2,792.2 | 2,606.7 | 185.5 | 7.1 | % | 19.9 | 0.8 | % | |||||||||||||
Asia/Pacific | 240.3 | 193.3 | 47.0 | 24.3 | % | (0.1 | ) | (0.1 | )% | ||||||||||||
$ | 5,451.3 | $ | 4,963.8 | $ | 487.5 | 9.8 | % | $ | (73.4 | ) | (1.5 | )% |
Three Months Ended June 30, | ||||||||||||||
2013 | 2012 | |||||||||||||
$ | % of Net Sales | $ | % of Net Sales | |||||||||||
Gross profit | $ | 710.3 | 23.3 | % | $ | 611.4 | 22.7 | % | ||||||
Selling, general and administrative expenses | 279.7 | 9.2 | % | 255.0 | 9.5 | % | ||||||||
Engineering expenses | 91.4 | 3.0 | % | 79.0 | 2.9 | % | ||||||||
Amortization of intangibles | 12.1 | 0.4 | % | 12.5 | 0.5 | % | ||||||||
Income from operations | $ | 327.1 | 10.7 | % | $ | 264.9 | 9.8 | % | ||||||
Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | |||||||||||||
$ | % of Net Sales | $ | % of Net Sales | |||||||||||
Gross profit | $ | 1,243.4 | 22.8 | % | $ | 1,104.4 | 22.2 | % | ||||||
Selling, general and administrative expenses | 535.4 | 9.8 | % | 493.9 | 9.9 | % | ||||||||
Engineering expenses | 179.4 | 3.3 | % | 151.1 | 3.0 | % | ||||||||
Amortization of intangibles | 24.1 | 0.4 | % | 24.7 | 0.5 | % | ||||||||
Income from operations | $ | 504.5 | 9.3 | % | $ | 434.7 | 8.8 | % |
• | Our $201.3 million of 11/4% convertible senior subordinated notes, which mature in 2036 but may be required by holders to be repurchased on December 15, 2013 or could be converted earlier based on the closing sales price of our common stock (see further discussion below). |
• | Our €200.0 million (or approximately $260.4 million as of June 30, 2013) 41/2% senior term loan, which matures in 2016 (see further discussion below). |
• | Our $300.0 million of 57/8% senior notes, which mature in 2021 (see further discussion below). |
• | Our revolving credit and term loan facility, consisting of a $600.0 million multi-currency revolving credit facility and a $370.0 million term loan facility, which expires in December 2016. As of June 30, 2013, $142.5 million was outstanding under the multi-currency revolving credit facility and $370.0 million was outstanding under the term loan facility (see further discussion below). |
• | Our accounts receivable sales agreements with our retail finance joint ventures in the United States, Canada and Europe. As of June 30, 2013, approximately $1.3 billion of cash had been received under these agreements (see further discussion below). |
• | general economic and capital market conditions; |
• | availability of credit to our retail customers; |
• | the worldwide demand for agricultural products; |
• | grain stock levels and the levels of new and used field inventories; |
• | government policies and subsidies; |
• | weather conditions; |
• | interest and foreign currency exchange rates; |
• | pricing and product actions taken by competitors; |
• | commodity prices, acreage planted and crop yields; |
• | farm income, land values, debt levels and access to credit; |
• | pervasive livestock diseases; |
• | production disruptions; |
• | production levels and capacity constraints at our facilities, including those resulting from plant expansions and systems upgrades; |
• | integration of recent and future acquisitions; |
• | our expansion plans in emerging markets; |
• | supply constraints; |
• | our cost reduction and control initiatives; |
• | our research and development efforts; |
• | dealer and distributor actions; |
• | regulations affecting privacy and data protection; |
• | technological difficulties; and |
• | political and economic uncertainty in various areas of the world. |
Exhibit Number | Description of Exhibit | The filings referenced for incorporation by reference are AGCO Corporation | ||
10.1 | Amendment to U.S. Receivables Purchase Agreement | Filed herewith | ||
10.2 | Amendment to Canadian Receivables Purchase Agreement | Filed herewith | ||
31.1 | Certification of Martin Richenhagen | Filed herewith | ||
31.2 | Certification of Andrew H. Beck | Filed herewith | ||
32.1 | Certification of Martin Richenhagen and Andrew H. Beck | Furnished herewith | ||
101.INS | XBRL Instance Document | Filed herewith | ||
101.SCH | XBRL Taxonomy Extension Schema | Filed herewith | ||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase | Filed herewith | ||
101.DEF | XBRL Taxonomy Extension Definition Linkbase | Filed herewith | ||
101.LAB | XBRL Taxonomy Extension Label Linkbase | Filed herewith | ||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase | Filed herewith |
Date: | August 8, 2013 | AGCO CORPORATION Registrant /s/ Andrew H. Beck | |
Andrew H. Beck Senior Vice President and Chief Financial Officer (Principal Financial Officer) |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weakness in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Dated: | August 8, 2013 | |
/s/ Martin Richenhagen | ||
Martin Richenhagen | ||
Chairman of the Board, President and Chief Executive Officer |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weakness in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Dated: | August 8, 2013 | |
/s/ Andrew H. Beck | ||
Andrew H. Beck | ||
Senior Vice President and Chief Financial Officer |
/s/ Martin Richenhagen | ||
Martin Richenhagen | ||
Chairman of the Board, President and Chief Executive Officer | ||
August 8, 2013 | ||
/s/Andrew H. Beck | ||
Andrew H. Beck | ||
Senior Vice President and Chief Financial Officer | ||
August 8, 2013 |
Accounts Receivable Sales Agreements
|
6 Months Ended |
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Jun. 30, 2013
|
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Accounts Receivable Sales Agreements [Abstract] | |
Accounts Receivable Sales Agreements | ACCOUNTS RECEIVABLE SALES AGREEMENTS As of June 30, 2013 and December 31, 2012, the Company had accounts receivable sales agreements that permit the sale, on an ongoing basis, of a majority of its wholesale receivables in North America and Europe to its 49% owned U.S., Canadian and European retail finance joint ventures. As of June 30, 2013 and December 31, 2012, the cash received from receivables sold under the U.S., Canadian and European accounts receivable sales agreements was approximately $1.3 billion and $1.1 billion, respectively. Under the terms of the accounts receivable agreements in North America and Europe, the Company pays an annual servicing fee related to the servicing of the receivables sold. The Company also pays the respective AGCO Finance entities a subsidized interest payment with respect to the sales agreements, calculated based upon LIBOR plus a margin on any non-interest bearing accounts receivable outstanding and sold under the sales agreements. These fees were reflected within losses on the sales of receivables included within “Other expense, net” in the Company’s Condensed Consolidated Statements of Operations. The Company does not service the receivables after the sale occurs and does not maintain any direct retained interest in the receivables. The Company reviewed its accounting for the accounts receivable sales agreements and determined that these facilities should be accounted for as off-balance sheet transactions. Losses on sales of receivables associated with the accounts receivable financing facilities discussed above, reflected within “Other expense, net” in the Company’s Condensed Consolidated Statements of Operations, were approximately $6.5 million and $12.1 million during the three and six months ended June 30, 2013, respectively. Losses on sales of receivables associated with the accounts receivable financing facilities discussed above, reflected within “Other expense, net” in the Company’s Condensed Consolidated Statements of Operations, were approximately $5.4 million and $10.6 million during the three and six months ended June 30, 2012, respectively. The Company’s retail finance joint ventures in Brazil and Australia also provide wholesale financing to the Company’s dealers. The receivables associated with these arrangements are without recourse to the Company. The Company does not service the receivables after the sale occurs and does not maintain any direct retained interest in the receivables. As of June 30, 2013 and December 31, 2012, these retail finance joint ventures had approximately $95.1 million and $100.6 million, respectively, of outstanding accounts receivable associated with these arrangements. The Company reviewed its accounting for these arrangements and determined that these arrangements should be accounted for as off-balance sheet transactions. In addition, the Company sells certain trade receivables under factoring arrangements to other financial institutions around the world. The Company reviewed the sale of such receivables and determined that these arrangements should be accounted for as off-balance sheet transactions. |
Changes in Stockholders' Equity and Temporary Equity (Schedule of Comprehensive Income for Noncontrolling Interest) (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2013
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Jun. 30, 2012
|
Jun. 30, 2013
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Jun. 30, 2012
|
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Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest [Abstract] | ||||
Net loss | $ (0.6) | $ (2.8) | $ (1.5) | $ (1.8) |
Other comprehensive loss: | ||||
Foreign currency translation adjustments | (0.3) | (1.4) | (0.2) | (1.4) |
Total comprehensive loss | $ (0.9) | $ (4.2) | $ (1.7) | $ (3.2) |
Indebtedness
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Jun. 30, 2013
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Indebtedness [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indebtedness | INDEBTEDNESS Indebtedness consisted of the following at June 30, 2013 and December 31, 2012 (in millions):
Convertible Senior Subordinated Notes The following table sets forth as of June 30, 2013 and December 31, 2012 the carrying amount of the equity component, the principal amount of the liability component, the unamortized discount and the net carrying amount of the Company’s $201.3 million 11/4% convertible senior subordinated notes due 2036 (in millions):
The interest expense recognized relating to the contractual interest coupon and the amortization of the discount on the liability component for the 11/4% convertible senior subordinated notes was approximately $2.9 million and $5.8 million for the three and six months ended June 30, 2013, respectively, and $2.8 million and $5.6 million for the three and six months ended June 30, 2012, respectively. The effective interest rate on the liability component for the 11/4% convertible senior subordinated notes for the six months ended June 30, 2013 and 2012 was 6.1%. The unamortized discount for the 11/4% convertible senior subordinated notes will be amortized through December 2013, as this is the earliest date that the notes’ holders can require the Company to repurchase the notes. The Company’s 11/4% convertible senior subordinated notes, due December 15, 2036, were issued in December 2006, and provide for (i) the settlement upon conversion in cash up to the principal amount of the notes with any excess conversion value settled in shares of the Company’s common stock, and (ii) the conversion rate to be increased under certain circumstances if the notes are converted in connection with certain change of control transactions occurring prior to December 15, 2013. The notes are unsecured obligations and are convertible into cash and shares of the Company’s common stock upon satisfaction of certain conditions. Interest is payable on the notes at 11/4% per annum, payable semi-annually in arrears in cash on June 15 and December 15 of each year. The notes are convertible into shares of the Company’s common stock at an effective price of $40.58 per share, subject to adjustment, including to reflect the impact to the conversion rate upon payment of any dividends to the Company’s stockholders. The current effective price reflects a conversion rate for the notes of 24.6413 shares of common stock per $1,000 principal amount of notes. Holders of the Company’s 11/4% convertible senior subordinated notes may require the Company to repurchase the notes at a repurchase price of 100% of their principal amount, plus any interest, on December 15, 2013. In addition, holders may convert the notes if, during any fiscal quarter, the closing sales price of the Company’s common stock exceeds 120% of the conversion price of $40.58 per share for at least 20 trading days in the 30 consecutive trading days ending on the last trading day of the preceding fiscal quarter. As of June 30, 2013, the closing sales price of the Company’s common stock had exceeded 120% of the conversion price of the 11/4% convertible senior subordinated notes for at least 20 trading days in the 30 consecutive trading days ending June 30, 2013, and, therefore, the holders of the notes may convert the notes during the three months ending September 30, 2013. As of June 30, 2013, the Company classified the notes as a current liability due to the redemption feature discussed above, as well as the ability of the holders of the notes to convert the notes during the three months ending September 30, 2013. As of December 31, 2012, the Company classified the notes as a current liability due to the redemption feature of the notes. As of June 30, 2013 and December 31, 2012, the Company also classified approximately $4.6 million and $9.2 million, respectively, of the equity component of the 11/4% convertible senior subordinated notes as “Temporary equity.” The amount classified as “Temporary equity” was measured as the excess of (i) the amount of cash that would be required to be paid upon conversion over (ii) the current carrying amount of the liability-classified component. Due to the redemption feature of the notes, unless converted prior to such date, the notes will be required to be classified as a current liability through at least December 15, 2013. Holders of the notes may convert the notes earlier than December 15, 2013 dependent on the closing sales price of the Company’s common stock during future quarters in 2013, as previously discussed. Future classification of the notes between current liabilities and long-term debt beyond December 15, 2013 will be dependent on the closing sales price of the Company’s common stock during future quarters, until the fourth quarter of 2015, unless the Company chooses to redeem the notes beginning December 19, 2013. 4 1/2% Senior Term Loan The Company’s €200.0 million (or approximately $260.4 million as of June 30, 2013) 41/2% senior term loan with Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (“Rabobank”) is due May 2, 2016. The Company has the ability to prepay the term loan before its maturity date. Interest is payable on the term loan at 41/2% per annum, payable quarterly in arrears on March 31, June 30, September 30 and December 31 of each year. The term loan contains covenants restricting, among other things, the incurrence of indebtedness and the making of certain payments, including dividends, and is subject to acceleration in the event of default. The Company also has to fulfill financial covenants with respect to a total debt to EBITDA ratio and an interest coverage ratio. 5 7/8% Senior Notes The Company’s $300.0 million of 57/8% senior notes due December 1, 2021 constitute senior unsecured and unsubordinated indebtedness. Interest is payable on the notes semi-annually in arrears on June 1 and December 1 of each year. At any time prior to September 1, 2021, the Company may redeem the notes, in whole or in part from time to time, at its option, at a redemption price equal to the greater of (i) 100% of the principal amount plus accrued and unpaid interest, including additional interest, if any, to, but excluding, the redemption date, or (ii) the sum of the present values of the remaining scheduled payments of principal and interest (exclusive of interest accrued to the date of redemption) discounted to the redemption date at the treasury rate plus 0.5%, plus accrued and unpaid interest, including additional interest, if any. Beginning September 1, 2021, the Company may redeem the notes, in whole or in part from time to time, at its option, at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest, including additional interest, if any. Credit Facility The Company’s revolving credit and term loan facility consists of a $600.0 million multi-currency revolving credit facility and a $370.0 million term loan facility. The maturity date of the Company’s credit facility is December 1, 2016. The Company is required to make quarterly payments towards the term loan of $5.0 million commencing March 2012 increasing to $10.0 million commencing March 2015. Interest accrues on amounts outstanding under the credit facility, at the Company’s option, at either (1) LIBOR plus a margin ranging from 1.0% to 2.0% based on the Company’s leverage ratio, or (2) the base rate, which is equal to the higher of (i) the administrative agent’s base lending rate for the applicable currency, (ii) the federal funds rate plus 0.5%, and (iii) one-month LIBOR for loans denominated in US dollars plus 1.0% plus a margin ranging from 0.0% to 0.5% based on the Company’s leverage ratio. The credit facility contains covenants restricting, among other things, the incurrence of indebtedness and the making of certain payments, including dividends, and is subject to acceleration in the event of a default. The Company also has to fulfill financial covenants with respect to a total debt to EBITDA ratio and an interest coverage ratio. As of June 30, 2013, the Company had $512.5 million of outstanding borrowings under the credit facility and availability to borrow approximately $457.5 million. As of December 31, 2012, the Company had $465.0 million of outstanding borrowings under the credit facility and availability to borrow approximately $515.0 million. The carrying amounts of long-term debt under the Company’s 41/2% senior term loan and credit facility approximate their fair values based on the borrowing rates currently available to the Company for loans with similar terms and average maturities. At June 30, 2013, the estimated fair values of the Company’s 57/8% senior notes and 11/4% convertible senior subordinated notes, based on their listed market values, were $318.2 million and $254.1 million, respectively, compared to their carrying values of $300.0 million and $196.7 million, respectively. At December 31, 2012, the estimated fair values of the Company’s 57/8% senior notes and 11/4% convertible senior subordinated notes, based on their listed market values, were $327.2 million and $250.6 million, respectively, compared to their carrying values of $300.0 million and $192.1 million, respectively. Standby Letters of Credit and Similar Instruments The Company has arrangements with various banks to issue standby letters of credit or similar instruments, which guarantee the Company’s obligations for the purchase or sale of certain inventories and for potential claims exposure for insurance coverage. At June 30, 2013 and December 31, 2012, outstanding letters of credit totaled $16.8 million and $15.8 million, respectively. |
Goodwill and Other Intangible Assets (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets by Major Class | Changes in the carrying amount of acquired intangible assets during the six months ended June 30, 2013 are summarized as follows (in millions):
|
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Schedule of Indefinite-lived Intangible Assets by Major Class |
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Schedule of Goodwill | Changes in the carrying amount of goodwill during the six months ended June 30, 2013 are summarized as follows (in millions):
|
Changes in Stockholders' Equity and Temporary Equity (Narrative) (Details) (USD $)
|
1 Months Ended | 6 Months Ended |
---|---|---|
Jul. 31, 2012
|
Jun. 30, 2013
|
|
Stockholders' Equity Note [Abstract] | ||
Stock repurchase program, authorized amount | $ 50,000,000.0 | |
Stock repurchased and retired during period, shares | 19,510 | |
Stock repurchased and retired during period | $ 1,000,000 | |
Stock repurchased and retired during period, average cost, in dollars per share | $ 49.34 |
Employee Benefit Plans
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS Net periodic pension and postretirement benefit cost for the Company’s defined pension and postretirement benefit plans for the three months ended June 30, 2013 and 2012 are set forth below (in millions):
Net periodic pension and postretirement benefit cost for the Company’s defined pension and postretirement benefit plans for the six months ended June 30, 2013 and 2012 are set forth below (in millions):
The following table summarizes the activity in accumulated other comprehensive loss related to the Company’s defined pension and postretirement benefit plans during the six months ended June 30, 2013 (in millions):
During the six months ended June 30, 2013, approximately $21.2 million of contributions had been made to the Company’s defined pension benefit plans. The Company currently estimates its minimum contributions for 2013 to its defined pension benefit plans will aggregate approximately $39.4 million. During the six months ended June 30, 2013, the Company made approximately $0.7 million of contributions to its postretirement health care and life insurance benefit plans. The Company currently estimates that it will make approximately $1.8 million of contributions to its postretirement health care and life insurance benefit plans during 2013. |
Income Taxes (Details) (USD $)
In Millions, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Income Tax Disclosure [Abstract] | ||
Unrecognized income tax benefits that would affect effective tax rate | $ 110.4 | $ 94.5 |
Accrued or deferred taxes relating to uncertain income tax positions | 33.1 | 23.5 |
Accrued interest and penalties relating to unrecognized tax benefits | $ 14.0 | $ 11.9 |
Accounts Receivable Sales Agreements (Details) (USD $)
|
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
Dec. 31, 2012
|
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Net cash received from receivables sold | $ 1,300,000,000 | $ 1,100,000,000 | |||
Loss on sales of receivables | 6,500,000 | 5,400,000 | 12,100,000 | 10,600,000 | |
Outstanding accounts receivable associated with retail finance joint ventures in Brazil and Australia | $ 95,100,000 | $ 95,100,000 | $ 100,600,000 | ||
Corporate Joint Venture [Member]
|
|||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Joint venture ownership percentage | 49.00% | 49.00% | 49.00% |
Product Warranty (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Product Warranty [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Warranty Reserve Activity | The warranty reserve activity for the three and six months ended June 30, 2013 and 2012 consisted of the following (in millions):
|
Inventories (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory | Inventories at June 30, 2013 and December 31, 2012 were as follows (in millions):
|
Product Warranty (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
Dec. 31, 2012
|
|
Warranty reserve activity: | |||||
Balance at beginning of period | $ 266.4 | $ 257.1 | $ 256.9 | $ 240.5 | |
Acquisitions | 0 | 0 | 0 | 0.1 | |
Accruals for warranties issued during the period | 66.2 | 45.7 | 109.5 | 91.3 | |
Settlements made (in cash or in kind) during the period | (38.6) | (37.3) | (67.1) | (74.0) | |
Foreign currency translation | (0.2) | (10.3) | (5.5) | (2.7) | |
Balance at end of period | 293.8 | 255.2 | 293.8 | 255.2 | |
Product warranty period, minimum, years | 1 year | ||||
Product warranty period, maximum, years | 4 years | ||||
Product warranty accrual, current | 258.8 | 258.8 | 223.9 | ||
Product warranty accrual, noncurrent | $ 35.0 | $ 35.0 | $ 33.0 |
Stock Compensation Plans (Schedule of Employee Service Share-based Compensation, Allocation of Recognized Costs) (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock compensation expense | $ 19.8 | $ 11.0 | $ 28.3 | $ 19.4 |
Cost of goods sold [Member]
|
||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock compensation expense | 1.3 | 0.6 | 1.9 | 1.2 |
Selling, general and administrative expenses [Member]
|
||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock compensation expense | $ 18.5 | $ 10.4 | $ 26.4 | $ 18.2 |
Goodwill and Other Intangible Assets (Indefinite-Lived Intangible Assets) (Details) (Trademarks and Tradenames [Member], USD $)
In Millions, unless otherwise specified |
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Trademarks and Tradenames [Member]
|
|
Indefinite-lived intangible assets: | |
Balance at beginning of period | $ 92.2 |
Foreign currency translation | (0.6) |
Balance at end of period | $ 91.6 |
Derivative Instruments and Hedging Activities (Narrative) (Details) (USD $)
In Millions, unless otherwise specified |
6 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
countries
|
Dec. 31, 2012
|
Jun. 30, 2013
Cash Flow Hedging [Member]
|
Jun. 30, 2012
Cash Flow Hedging [Member]
|
Jun. 30, 2013
Foreign Currency Contracts [Member]
|
Jun. 30, 2012
Foreign Currency Contracts [Member]
|
Jun. 30, 2013
Foreign Currency Contracts [Member]
|
Jun. 30, 2012
Foreign Currency Contracts [Member]
|
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Number of countries where products sold, countries | 140 | |||||||
Net gains (losses) reclassified from accumulated other comprehensive loss into income | $ (1.6) | $ 1.6 | $ (2.6) | |||||
Notional amount of foreign currency contracts outstanding | 190.0 | 110.3 | ||||||
Notional amount of foreign currency contracts outstanding classified as non-designated derivative instruments | 1,004.5 | 1,467.0 | ||||||
Gain (loss) on derivative instruments not designated as hedging | $ 0.4 | $ (6.3) | $ (12.4) | $ 0.9 |
Employee Benefit Plans (Tables)
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Accumulated Other Comprehensive Income | The following table sets forth changes in accumulated other comprehensive loss by component, net of tax, attributed to AGCO Corporation and its subsidiaries for the six months ended June 30, 2013 (in millions):
The following table summarizes the activity in accumulated other comprehensive loss related to the Company’s defined pension and postretirement benefit plans during the six months ended June 30, 2013 (in millions):
|
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Pension Benefits [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Pension And Postretirement Cost | Net periodic pension and postretirement benefit cost for the Company’s defined pension and postretirement benefit plans for the three months ended June 30, 2013 and 2012 are set forth below (in millions):
Net periodic pension and postretirement benefit cost for the Company’s defined pension and postretirement benefit plans for the six months ended June 30, 2013 and 2012 are set forth below (in millions):
|
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Postretirement Benefits [Member]
|
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Pension And Postretirement Cost |
|
Commitments and Contingencies (Details)
In Millions, unless otherwise specified |
0 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
USD ($)
|
Jun. 30, 2013
BRL
|
Dec. 31, 2012
USD ($)
|
Oct. 30, 2012
Subsidiaries [Member]
defendant
|
Jun. 27, 2008
Subsidiaries [Member]
defendant
|
Oct. 30, 2012
Third Parties [Member]
defendant
|
Jun. 27, 2008
Third Parties [Member]
defendant
|
Jun. 30, 2012
Retail Finance Joint Venture [Member]
USD ($)
|
|
Guarantees [Abstract] | ||||||||
Maximum repossessed inventory purchase obligation with retail joint ventures | $ 6.0 | |||||||
Guaranteed indebtedness owed to third parties | 128.5 | |||||||
Loss Contingency [Abstract] | ||||||||
Reserve against outstanding Braziliant VAT receivable | 66.0 | 59.6 | ||||||
Number of defendants | 3 | 3 | 60 | 91 | ||||
Tax disallowance not including interest and penalties | $ 59.3 | 131.5 |
Indebtedness (Components Of Indebtedness) (Details)
|
Jun. 30, 2013
USD ($)
|
Dec. 31, 2012
USD ($)
|
Jun. 30, 2013
1 1/4% Convertible Senior Subordinated Notes Due 2036 [Member]
USD ($)
|
Dec. 31, 2012
1 1/4% Convertible Senior Subordinated Notes Due 2036 [Member]
USD ($)
|
Jun. 30, 2013
4 1/2% Senior Unsecured Term Loan Due May 2, 2016 [Member]
USD ($)
|
Jun. 30, 2013
4 1/2% Senior Unsecured Term Loan Due May 2, 2016 [Member]
EUR (€)
|
Dec. 31, 2012
4 1/2% Senior Unsecured Term Loan Due May 2, 2016 [Member]
USD ($)
|
Jun. 30, 2013
5 7/8% Senior Notes due 2021 [Member]
USD ($)
|
Dec. 31, 2012
5 7/8% Senior Notes due 2021 [Member]
USD ($)
|
---|---|---|---|---|---|---|---|---|---|
Debt Instrument [Line Items] | |||||||||
Debt instrument, interest rate, percent | 1.25% | 1.25% | 4.50% | 4.50% | 4.50% | 5.875% | 5.875% | ||
Convertible debt | $ 196,700,000 | $ 192,100,000 | |||||||
Senior notes | 260,400,000 | 200,000,000.0 | 264,200,000 | 300,000,000 | 300,000,000 | ||||
Credit facility | 512,500,000 | 465,000,000 | |||||||
Other long-term debt | 92,700,000 | 65,500,000 | |||||||
Total indebtedness | 1,362,300,000 | 1,286,800,000 | |||||||
Less: Current portion of long-term debt | (88,100,000) | (59,100,000) | |||||||
Convertible Notes Payable, Current | (196,700,000) | (192,100,000) | (196,700,000) | (192,100,000) | |||||
Total indebtedness, less current portion | $ 1,077,500,000 | $ 1,035,600,000 |
Indebtedness (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Indebtedness [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components Of Indebtedness | Indebtedness consisted of the following at June 30, 2013 and December 31, 2012 (in millions):
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Carrying Amount Of The Convertible Senior Subordinated Notes | The following table sets forth as of June 30, 2013 and December 31, 2012 the carrying amount of the equity component, the principal amount of the liability component, the unamortized discount and the net carrying amount of the Company’s $201.3 million 11/4% convertible senior subordinated notes due 2036 (in millions):
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Stock Compensation Plans
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6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Share-based Compensation [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Compensation Plans | STOCK COMPENSATION PLANS The Company recorded stock compensation expense as follows for the three and six months ended June 30, 2013 and 2012 (in millions):
Stock Incentive Plan Under the Company’s 2006 Long Term Incentive Plan (the “2006 Plan”), up to 10.0 million shares of AGCO common stock may be issued. The 2006 Plan allows the Company, under the direction of the Board of Directors’ Compensation Committee, to make grants of performance shares, stock appreciation rights and restricted stock awards to employees, officers and non-employee directors of the Company. Employee Plans The weighted average grant-date fair value of performance awards granted under the 2006 Plan during the six months ended June 30, 2013 and 2012 was $50.65 and $52.14, respectively. During the six months ended June 30, 2013, the Company granted 1,001,400 awards related to the three-year performance period commencing in 2013 and ending in 2015, assuming the maximum target level of performance is achieved. The compensation expense associated with all awards granted under the 2006 Plan is amortized ratably over the vesting or performance period based on the Company’s projected assessment of the level of performance that will be achieved and earned. Performance award transactions during the six months ended June 30, 2013 were as follows and are presented as if the Company were to achieve its maximum levels of performance under the plan:
As of June 30, 2013, the total compensation cost related to unearned performance awards not yet recognized, assuming the Company’s current projected assessment of the level of performance that will be achieved and earned, was approximately $75.6 million, and the weighted average period over which it is expected to be recognized is approximately two years. During the three and six months ended June 30, 2013, the Company recorded stock compensation expense of approximately $1.2 million and $2.3 million, respectively, associated with stock-settled appreciation rights (“SSAR”) awards. During the three and six months ended June 30, 2012, the Company recorded stock compensation expense of approximately $0.9 million and $1.8 million, respectively, associated with SSAR awards. The Company estimated the fair value of the grants using the Black-Scholes option pricing model. The weighted average grant-date fair value of SSARs granted under the 2006 Plan and the weighted average assumptions under the Black-Scholes option model were as follows for the six months ended June 30, 2013 and 2012:
SSAR transactions during the six months ended June 30, 2013 were as follows:
At June 30, 2013, the weighted average remaining contractual life of SSARs outstanding was approximately four years. As of June 30, 2013, the total compensation cost related to unvested SSARs not yet recognized was approximately $11.3 million and the weighted-average period over which it is expected to be recognized is approximately three years. The following table sets forth the exercise price range, number of shares, weighted average exercise price, and remaining contractual lives by groups of similar price as of June 30, 2013:
The total fair value of SSARs vested during the six months ended June 30, 2013 was approximately $3.6 million. There were 591,950 SSARs that were not vested as of June 30, 2013. The total intrinsic value of outstanding and exercisable SSARs as of June 30, 2013 was $7.8 million and $7.1 million, respectively. The total intrinsic value of SSARs exercised during the six months ended June 30, 2013 was approximately $3.9 million. The Company realized an insignificant tax benefit from the exercise of these SSARs. Director Restricted Stock Grants The 2006 Plan provides for annual restricted stock grants of the Company’s common stock to all non-employee directors. The shares are restricted as to transferability for a period of three years, but are not subject to forfeiture. In the event a director departs from the Company’s Board of Directors, the non-transferability period expires immediately. The plan allows each director to have the option of forfeiting a portion of the shares awarded in lieu of a cash payment contributed to the participant’s tax withholding to satisfy the statutory minimum federal, state and employment taxes that would be payable at the time of grant. The 2013 grant was made on April 25, 2013 and equated to 17,171 shares of common stock, of which 12,059 shares of common stock were issued after shares were withheld for taxes. The Company recorded stock compensation expense of approximately $0.9 million during the six months ended June 30, 2013 associated with these grants. As of June 30, 2013, of the 10.0 million shares reserved for issuance under the 2006 Plan, approximately 3.4 million shares were available for grant, assuming the maximum number of shares are earned related to the performance award grants discussed above. |
Inventories
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | INVENTORIES Inventories at June 30, 2013 and December 31, 2012 were as follows (in millions):
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Goodwill and Other Intangible Assets
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS Changes in the carrying amount of acquired intangible assets during the six months ended June 30, 2013 are summarized as follows (in millions):
Changes in the carrying amount of goodwill during the six months ended June 30, 2013 are summarized as follows (in millions):
Goodwill is tested for impairment on an annual basis and more often if indications of impairment exist. The Company conducts its annual impairment analyses as of October 1 each fiscal year. The Company currently amortizes certain acquired intangible assets, primarily on a straight-line basis, over their estimated useful lives, which range from five to 50 years. During the six months ended June 30, 2013, the Company reduced goodwill by approximately $4.0 million related to the realization of tax benefits associated with excess tax basis deductible goodwill resulting from its acquisition of Valtra in Finland. |
Net Income Per Common Share (Tables)
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Jun. 30, 2013
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Calculation Of Basic And Diluted Earnings Per Share | A reconciliation of net income attributable to AGCO Corporation and its subsidiaries and weighted average common shares outstanding for purposes of calculating basic and diluted net income per share for the three and six months ended June 30, 2013 and 2012 is as follows (in millions, except per share data):
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Segment Reporting (Tables)
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6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales Information By Reportable Segments | Segment results for the three and six months ended June 30, 2013 and 2012 and assets as of June 30, 2013 and December 31, 2012 based on the Company’s reportable segments are as follows (in millions):
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Reconciliation of Income From Operations from Segment to Consolidated | A reconciliation from the segment information to the consolidated balances for income from operations and total assets is set forth below (in millions):
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Reconciliation of Assets from Segment to Consolidated |
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Stock Compensation Plans (SSAR Activity) (Details) (Stock Appreciation Rights (SARs) [Member], USD $)
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6 Months Ended |
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Jun. 30, 2013
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Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding [Roll Forward] | |
SSARs outstanding, beginning of period, shares | 1,073,087 |
SSARs granted, shares | 280,900 |
SSARs exercised, shares | (166,149) |
SSARs canceled or forfeited, shares | (43,332) |
SSARs outstanding, end of period, shares | 1,144,506 |
Weighted average SSAR exercise prices per share: | |
Granted | $ 51.84 |
Exercised | $ 31.66 |
Canceled or forfeited | $ 48.63 |
Outstanding | $ 45.22 |
Minimum [Member]
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SSAR price ranges per share: | |
Granted | $ 51.84 |
Exercised | $ 21.45 |
Canceled or forfeited | $ 21.45 |
Maximum [Member]
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SSAR price ranges per share: | |
Granted | $ 51.84 |
Exercised | $ 52.94 |
Canceled or forfeited | $ 56.98 |
Changes in Stockholders' Equity and Temporary Equity (Reclassifications out of Accumulated Other Comprehensive Income) (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||||||||
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Jun. 30, 2013
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Jun. 30, 2012
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Jun. 30, 2013
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Jun. 30, 2012
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Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||
Cost of goods sold | $ 2,337.9 | $ 2,078.7 | $ 4,207.9 | $ 3,859.4 | ||||||
Total before taxes | 303.4 | 244.1 | 464.5 | 396.5 | ||||||
Income tax provision | 104.4 | 57.3 | 157.3 | 100.5 | ||||||
Net income attributable to AGCO Corporation and subsidiaries | 213.7 | 204.9 | 331.7 | 325.1 | ||||||
Reclassification out of Accumulated Other Comprehensive Income [Member]
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Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||
Net income attributable to AGCO Corporation and subsidiaries | 1.3 | [1] | 3.2 | [1] | ||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
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Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||
Cost of goods sold | (1.1) | [1] | (1.7) | [1] | ||||||
Income tax provision | 0 | [1] | 0.1 | [1] | ||||||
Net income attributable to AGCO Corporation and subsidiaries | (1.1) | [1] | (1.6) | [1] | ||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment [Member]
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Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||
Amortization of net actuarial loss | 3.0 | [1],[2] | 6.1 | [1],[2] | ||||||
Amortization of prior service cost | 0.3 | [1],[2] | 0.5 | [1],[2] | ||||||
Total before taxes | 3.3 | [1] | 6.6 | [1] | ||||||
Income tax provision | (0.9) | [1] | (1.8) | [1] | ||||||
Net income attributable to AGCO Corporation and subsidiaries | $ 2.4 | [1] | $ 4.8 | [1] | ||||||
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