TABLE OF CONTENTS | |
Percentage of Net Sales | |||||||||||
Product | Product Description | 2015 | 2014 | 2013 | |||||||
Tractors | • | High horsepower tractors (100 to 600 horsepower); typically used on larger farms, primarily for row crop production | 57 | % | 57 | % | 60 | % | |||
• | Utility tractors (40 to 100 horsepower); typically used on small- and medium-sized farms and in specialty agricultural industries, including dairy, livestock, orchards and vineyards | ||||||||||
• | Compact tractors (under 40 horsepower); typically used on small farms and specialty agricultural industries, as well as for landscaping and residential uses | ||||||||||
Combines | • | Combines, sold with a variety of threshing technologies and complemented by a variety of crop-harvesting heads; typically used in harvesting grain crops such as corn, wheat, soybeans and rice | 4 | % | 6 | % | 6 | % | |||
Application Equipment | • | Self-propelled, three- and four-wheeled vehicles and related equipment; for use in the application of liquid and dry fertilizers and crop protection chemicals both prior to planting crops (“pre-emergence”) and after crops emerge from the ground (“post-emergence”) | 4 | % | 5 | % | 5 | % | |||
Hay Tools and Forage Equipment, Implements & Other Equipment | • | Round and rectangular balers, self-propelled windrowers, disc mowers, spreaders, rakes, tedders, and mower conditioners; used for the harvesting and packaging of vegetative feeds used in the beef cattle, dairy, horse and renewable fuel industries | 9 | % | 9 | % | 9 | % | |||
• | Implements, including disc harrows, which cut through crop residue, leveling seed beds and mixing chemicals with the soils; heavy tillage, which break up soil and mix crop residue into topsoil, with or without prior discing; field cultivators, which prepare a smooth seed bed and destroy weeds; and drills, which are primarily used for small grain seeding | ||||||||||
• | Planters; used to apply fertilizer and plant seeds in the field, typically used in row crop seeding | ||||||||||
• | Other equipment, including loaders; used for a variety of tasks, including lifting and transporting hay crops | ||||||||||
Grain Storage and Protein Production Systems | • | Grain storage bins and related drying and handling equipment systems; swine and poultry feed storage and delivery, ventilation and watering systems; and egg production cages and broiler production equipment | 10 | % | 9 | % | 7 | % | |||
Replacement Parts | • | Replacement parts for all of the products we sell, including products no longer in production. Most of our products can be economically maintained with parts and service for a period of ten to 20 years. Our parts inventories are maintained and distributed through a network of master and regional warehouses throughout North America, South America, Europe and Australia in order to provide timely response to customer demand for replacement parts | 16 | % | 14 | % | 13 | % |
Independent Dealers and Distributors | Percent of Net Sales | ||||||||||
Geographical region | 2015 | 2015 | 2014 | 2013 | |||||||
Europe | 1,010 | 51 | % | 49 | % | 48 | % | ||||
North America | 1,340 | 26 | % | 25 | % | 26 | % | ||||
South America | 290 | 13 | % | 17 | % | 19 | % | ||||
Rest of World (1) | 360 | 10 | % | 9 | % | 7 | % |
• | annual reports on Form 10-K; |
• | quarterly reports on Form 10-Q; |
• | current reports on Form 8-K; |
• | proxy statements for the annual meetings of stockholders; and |
• | Forms 3, 4 and 5 |
• | charters for the committees of our board of directors, which are available under the heading “Charters of the Committees of the Board” in the “Governance, Committees, & Charters” section of the “Corporate Governance” section of our website located under “Investors,” and |
• | our Global Code of Conduct, which is available under the heading “Global Code of Conduct” in the “Corporate Governance” section of our website located under “Investors.” |
• | innovation; |
• | customer acceptance; |
• | the efficiency of our suppliers in providing component parts and of our manufacturing facilities in producing final products; and |
• | the performance and quality of our products relative to those of our competitors. |
• | requiring us to dedicate a substantial portion of our cash flow from operations to payments on our indebtedness, which would reduce the availability of our cash flow to fund future working capital, capital expenditures, acquisitions and other general corporate purposes; |
• | increasing our vulnerability to general adverse economic and industry conditions; |
• | limiting our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate; |
• | restricting us from being able to introduce new products or pursuing business opportunities; |
• | placing us at a competitive disadvantage compared to our competitors that may have less indebtedness; and |
• | limiting, along with the financial and other restrictive covenants in our indebtedness, among other things, our ability to borrow additional funds, pay cash dividends or engage in or enter into certain transactions. |
• | the costs of integrating acquired businesses and their operations may be higher than we expect and may require significant attention from our management; |
• | the businesses we acquire may have undisclosed liabilities, such as environmental liabilities or liabilities for violations of laws, such as the FCPA, that we did not expect; and |
• | our ability to successfully carry out our growth strategies for acquired businesses will be affected by, among other things, our ability to maintain and enhance our relationships with their existing customers, our ability to provide additional product distribution opportunities to them through our existing distribution channels, changes in the spending patterns and preferences of customers and potential customers, fluctuating economic and competitive conditions and our ability to retain their key personnel. |
Location | Description of Property | Leased (Sq. Ft.) | Owned (Sq. Ft.) | |||||
United States: | ||||||||
Assumption, Illinois | Manufacturing/Sales and Administrative Office | 933,900 | ||||||
Batavia, Illinois | Parts Distribution | 310,200 | ||||||
Duluth, Georgia | Corporate Headquarters | 166,700 | ||||||
Hesston, Kansas | Manufacturing | 1,461,800 | ||||||
Jackson, Minnesota | Manufacturing | 327,000 | 706,000 | |||||
International: | ||||||||
Beauvais, France(1) | Manufacturing | 14,300 | 1,258,700 | |||||
Breganze, Italy | Manufacturing | 1,548,400 | ||||||
Ennery, France | Parts Distribution | 54,500 | 823,200 | |||||
Linnavuori, Finland | Manufacturing | 396,300 | ||||||
Marktoberdorf, Germany | Manufacturing | 127,400 | 1,472,000 | |||||
Suolahti, Finland | Manufacturing/Parts Distribution | 550,900 | ||||||
Canoas, Brazil | Regional Headquarters/Manufacturing | 665,200 | ||||||
Mogi das Cruzes, Brazil | Manufacturing | 727,400 | ||||||
Santa Rosa, Brazil | Manufacturing | 512,200 | ||||||
Changzhou, China | Manufacturing | 248,000 | 767,000 |
(1) | Includes our joint venture, GIMA, in which we own a 50% interest. |
Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
High | Low | Dividend | |||||||||
2015 | |||||||||||
First Quarter | $ | 50.95 | $ | 42.07 | $ | 0.12 | |||||
Second Quarter | 57.26 | 46.13 | 0.12 | ||||||||
Third Quarter | 57.90 | 43.22 | 0.12 | ||||||||
Fourth Quarter | 51.73 | 41.91 | 0.12 |
High | Low | Dividend | |||||||||
2014 | |||||||||||
First Quarter | $ | 59.02 | $ | 49.93 | $ | 0.11 | |||||
Second Quarter | 59.18 | 53.28 | 0.11 | ||||||||
Third Quarter | 56.61 | 45.07 | 0.11 | ||||||||
Fourth Quarter | 47.37 | 41.56 | 0.11 |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(1) | Maximum Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in millions)(1)(2)(3) | ||||||||||
October 1, 2015 through October 31, 2015 (2) | 342,637 | $ | 46.12 | 342,637 | $ | 344.2 | ||||||||
November 1, 2015 through November 30, 2015 (3) | 1,711,230 | $ | 46.75 | 1,711,230 | $ | 244.2 | ||||||||
December 1, 2015 through December 31, 2015 | — | $ | — | — | $ | 244.2 | ||||||||
Total | 2,053,867 | $ | 46.50 | 2,053,867 | $ | 244.2 |
(1) | Our Board of Directors’ authorization to repurchase these shares expires in December 2016. |
(2) | In August 2015, we entered into an accelerated share repurchase (“ASR”) agreement with a third-party financial institution to repurchase $62.5 million of our common stock. The ASR agreement resulted in the delivery of 1,012,638 shares of our common stock, representing 75% of the shares expected to be repurchased in connection with the transaction. In October 2015, the remaining 342,637 shares under the ASR agreement were delivered. As reflected in the table above, the average price paid per share for the ASR agreement was the volume-weighted average stock price of our common stock over the term of the ASR agreement. Refer to Note 9 of our Consolidated Financial Statements contained in Item 8, “Financial Statements and Supplementary Data, ”for a further discussion of this matter. |
(3) | In November 2015, we entered into an ASR agreement with a third-party financial institution to repurchase $100.0 million of our common stock. The ASR agreement resulted in the initial delivery of 1,711,230 shares of our common stock, representing approximately 80% of the shares expected to be repurchased in connection with the transaction. In January 2016, the remaining 407,607 shares under the ASR agreement were delivered. The average price paid per share related to the ASR agreement reflected in the table above was derived using the fair market value of the shares on the date the initial 1,711,230 shares were delivered. The amount that may yet be purchased under our share repurchase programs, as presented in the above table, was reduced by the entire $100.0 million payment related to the ASR agreement. Refer to Note 9 of our Consolidated Financial Statements contained in Item 8, “Financial Statements and Supplementary Data,” for a further discussion of this matter. |
Years Ended December 31, | ||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||
(In millions, except per share data) | ||||||||||||||||||||
Operating Data: | ||||||||||||||||||||
Net sales | $ | 7,467.3 | $ | 9,723.7 | $ | 10,786.9 | $ | 9,962.2 | $ | 8,773.2 | ||||||||||
Gross profit | 1,560.6 | 2,066.3 | 2,390.6 | 2,123.2 | 1,776.1 | |||||||||||||||
Income from operations | 361.1 | 646.5 | 900.7 | 693.2 | 610.3 | |||||||||||||||
Net income | 264.0 | 404.2 | 592.3 | 516.4 | 585.3 | |||||||||||||||
Net loss (income) attributable to noncontrolling interests | 2.4 | 6.2 | 4.9 | 5.7 | (2.0 | ) | ||||||||||||||
Net income attributable to AGCO Corporation and subsidiaries | $ | 266.4 | $ | 410.4 | $ | 597.2 | $ | 522.1 | $ | 583.3 | ||||||||||
Net income per common share — diluted | $ | 3.06 | $ | 4.36 | $ | 6.01 | $ | 5.30 | $ | 5.95 | ||||||||||
Cash dividends declared and paid per common share | $ | 0.48 | $ | 0.44 | $ | 0.40 | $ | — | $ | — | ||||||||||
Weighted average shares outstanding — diluted | 87.1 | 94.2 | 99.4 | 98.6 | 98.1 |
As of December 31, | ||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||
(In millions, except number of employees) | ||||||||||||||||||||
Balance Sheet Data: | ||||||||||||||||||||
Cash and cash equivalents | $ | 426.7 | $ | 363.7 | $ | 1,047.2 | $ | 781.3 | $ | 724.4 | ||||||||||
Total assets (1) | 6,501.3 | 7,368.8 | 8,395.8 | 7,700.9 | 7,317.8 | |||||||||||||||
Total long-term debt, excluding current portion | 928.8 | 997.6 | 938.5 | 1,035.6 | 1,409.7 | |||||||||||||||
Stockholders’ equity | 2,883.3 | 3,496.9 | 4,044.8 | 3,481.5 | 3,031.2 | |||||||||||||||
Other Data: | ||||||||||||||||||||
Number of employees | 19,588 | 20,828 | 22,111 | 20,320 | 19,294 |
(1) | The Company elected to early adopt Accounting Standards Update 2015-17 “Balance Sheet Classification of Deferred Taxes” ( “ASU 2015-17”), which requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The requirements of ASU 2015-17 have been applied retrospectively to all periods presented. Refer to Note 1 of our Consolidated Financial Statements contained in Item 8 for a further discussion of this matter. |
Years Ended December 31, | ||||||||
2015 (1) | 2014 (1) | 2013 (1) | ||||||
Net sales | 100.0 | % | 100.0 | % | 100.0 | % | ||
Cost of goods sold | 79.1 | 78.7 | 77.8 | |||||
Gross profit | 20.9 | 21.3 | 22.2 | |||||
Selling, general and administrative expenses | 11.4 | 10.2 | 10.1 | |||||
Engineering expenses | 3.8 | 3.5 | 3.3 | |||||
Restructuring and other infrequent expenses | 0.3 | 0.5 | — | |||||
Amortization of intangibles | 0.6 | 0.4 | 0.4 | |||||
Income from operations | 4.8 | 6.6 | 8.4 | |||||
Interest expense, net | 0.6 | 0.6 | 0.5 | |||||
Other expense, net | 0.5 | 0.5 | 0.4 | |||||
Income before income taxes and equity in net earnings of affiliates | 3.7 | 5.5 | 7.4 | |||||
Income tax provision | 1.0 | 1.9 | 2.4 | |||||
Income before equity in net earnings of affiliates | 2.8 | 3.6 | 5.0 | |||||
Equity in net earnings of affiliates | 0.8 | 0.5 | 0.4 | |||||
Net income | 3.5 | 4.2 | 5.5 | |||||
Net loss attributable to noncontrolling interests | — | 0.1 | — | |||||
Net income attributable to AGCO Corporation and subsidiaries | 3.6 | % | 4.2 | % | 5.5 | % |
(1) | Rounding may impact summation of amounts. |
Change | Change due to Currency Translation | ||||||||||||||||||||
2015 | 2014 | $ | % | $ | % | ||||||||||||||||
North America | $ | 1,965.0 | $ | 2,414.2 | $ | (449.2 | ) | (18.6 | )% | $ | (54.5 | ) | (2.3 | )% | |||||||
South America | 949.0 | 1,663.4 | (714.4 | ) | (42.9 | )% | (352.3 | ) | (21.2 | )% | |||||||||||
EAME | 4,151.3 | 5,158.5 | (1,007.2 | ) | (19.5 | )% | (799.3 | ) | (15.5 | )% | |||||||||||
Asia/Pacific | 402.0 | 487.6 | (85.6 | ) | (17.6 | )% | (58.9 | ) | (12.1 | )% | |||||||||||
$ | 7,467.3 | $ | 9,723.7 | $ | (2,256.4 | ) | (23.2 | )% | $ | (1,265.0 | ) | (13.0 | )% |
2015 | 2014 | ||||||||||||
$ | % of Net Sales | $ | % of Net Sales(1) | ||||||||||
Gross profit | $ | 1,560.6 | 20.9 | % | $ | 2,066.3 | 21.3 | % | |||||
Selling, general and administrative expenses | 852.3 | 11.4 | % | 995.4 | 10.2 | % | |||||||
Engineering expenses | 282.2 | 3.8 | % | 337.0 | 3.5 | % | |||||||
Restructuring and other infrequent expenses | 22.3 | 0.3 | % | 46.4 | 0.5 | % | |||||||
Amortization of intangibles | 42.7 | 0.6 | % | 41.0 | 0.4 | % | |||||||
Income from operations | $ | 361.1 | 4.8 | % | $ | 646.5 | 6.6 | % |
(1) | Rounding may impact summation of amounts. |
Change | Change due to Currency Translation | ||||||||||||||||||||
2014 | 2013 | $ | % | $ | % | ||||||||||||||||
North America | $ | 2,414.2 | $ | 2,757.8 | $ | (343.6 | ) | (12.5 | )% | $ | (25.3 | ) | (0.9 | )% | |||||||
South America | 1,663.4 | 2,039.7 | (376.3 | ) | (18.4 | )% | (180.1 | ) | (8.8 | )% | |||||||||||
Europe/Africa/Middle East | 5,158.5 | 5,481.5 | (323.0 | ) | (5.9 | )% | (40.0 | ) | (0.7 | )% | |||||||||||
Asia/Pacific | 487.6 | 507.9 | (20.3 | ) | (4.0 | )% | (13.3 | ) | (2.6 | )% | |||||||||||
$ | 9,723.7 | $ | 10,786.9 | $ | (1,063.2 | ) | (9.9 | )% | $ | (258.7 | ) | (2.4 | )% |
2014 | 2013 | ||||||||||||
$ | % of Net Sales(1) | $ | % of Net Sales | ||||||||||
Gross profit | $ | 2,066.3 | 21.3 | % | $ | 2,390.6 | 22.2 | % | |||||
Selling, general and administrative expenses | 995.4 | 10.2 | % | 1,088.7 | 10.1 | % | |||||||
Engineering expenses | 337.0 | 3.5 | % | 353.4 | 3.3 | % | |||||||
Restructuring and other infrequent expenses | 46.4 | 0.5 | % | — | — | % | |||||||
Amortization of intangibles | 41.0 | 0.4 | % | 47.8 | 0.4 | % | |||||||
Income from operations | $ | 646.5 | 6.6 | % | $ | 900.7 | 8.4 | % |
(1) | Rounding may impact summation of amounts. |
Three Months Ended | |||||||||||||||
March 31 | June 30 | September 30 | December 31 | ||||||||||||
(In millions, except per share data) | |||||||||||||||
2015: | |||||||||||||||
Net sales | $ | 1,702.6 | $ | 2,069.3 | $ | 1,736.4 | $ | 1,959.0 | |||||||
Gross profit | 347.9 | 449.6 | 365.7 | 397.4 | |||||||||||
Income from operations | 46.8 | 149.9 | 79.1 | 85.3 | |||||||||||
Net income | 29.9 | 105.6 | 67.2 | 61.3 | |||||||||||
Net loss (income) attributable to noncontrolling interests | 0.2 | 1.5 | (0.1 | ) | 0.8 | ||||||||||
Net income attributable to AGCO Corporation and subsidiaries | 30.1 | 107.1 | 67.1 | 62.1 | |||||||||||
Net income per common share attributable to AGCO Corporation and subsidiaries — diluted | 0.34 | 1.22 | 0.77 | 0.73 | |||||||||||
2014: | |||||||||||||||
Net sales | $ | 2,333.4 | $ | 2,750.3 | $ | 2,154.8 | $ | 2,485.2 | |||||||
Gross profit | 514.9 | 631.5 | 421.9 | 498.0 | |||||||||||
Income from operations | 155.7 | 266.7 | 108.7 | 115.4 | |||||||||||
Net income | 99.2 | 166.0 | 62.5 | 76.5 | |||||||||||
Net loss attributable to noncontrolling interests | 0.4 | 2.2 | 2.5 | 1.1 | |||||||||||
Net income attributable to AGCO Corporation and subsidiaries | 99.6 | 168.2 | 65.0 | 77.6 | |||||||||||
Net income per common share attributable to AGCO Corporation and subsidiaries — diluted | 1.03 | 1.77 | 0.69 | 0.85 |
• | Our €200.0 million (or approximately $217.2 million as of December 31, 2015) 41/2% senior term loan, which matures in 2016 (see further discussion below). |
• | Our revolving credit and term loan facility, consisting of an $800.0 million multi-currency revolving credit facility and a €312.0 million (or approximately $338.9 million as of December 31, 2015) term loan facility, which expires in June 2020. As of December 31, 2015, there were no outstanding amounts under the multi-currency revolving credit facility and €312.0 million (or approximately $338.9 million) was outstanding under the term loan facility (see further discussion below). |
• | Our €200.0 million (or approximately $217.2 million as of December 31, 2015) 1.056% senior term loan, which matures in 2020 (see further discussion below). |
• | Our $297.4 million of 57/8% senior notes, which mature in 2021 (see further discussion below). |
• | Our accounts receivable sales agreements with our finance joint ventures in the United States, Canada, Europe and Brazil. As of December 31, 2015, approximately $1.1 billion of cash had been received under these agreements (see further discussion below). |
Payments Due By Period | |||||||||||||||||||
Total | 2016 | 2017 to 2018 | 2019 to 2020 | 2021 and Beyond | |||||||||||||||
Indebtedness(1) | $ | 1,235.0 | $ | 306.2 | $ | 53.2 | $ | 578.2 | $ | 297.4 | |||||||||
Interest payments related to indebtedness(2) | 128.7 | 52.2 | 37.6 | 29.0 | 9.9 | ||||||||||||||
Capital lease obligations | 3.4 | 2.1 | 1.3 | — | — | ||||||||||||||
Operating lease obligations | 174.3 | 50.2 | 58.4 | 22.7 | 43.0 | ||||||||||||||
Unconditional purchase obligations | 87.7 | 71.1 | 16.5 | 0.1 | — | ||||||||||||||
Other short-term and long-term obligations(3) | 369.6 | 95.4 | 83.0 | 81.5 | 109.7 | ||||||||||||||
Total contractual cash obligations | $ | 1,998.7 | $ | 577.2 | $ | 250.0 | $ | 711.5 | $ | 460.0 | |||||||||
Amount of Commitment Expiration Per Period | |||||||||||||||||||
2017 to 2018 | 2019 to 2020 | 2021 and Beyond | |||||||||||||||||
Total | 2016 | ||||||||||||||||||
Standby letters of credit and similar instruments | $ | 17.5 | $ | 17.5 | $ | — | $ | — | $ | — | |||||||||
Guarantees | 68.3 | 63.2 | 4.3 | 0.8 | — | ||||||||||||||
Total commercial commitments and letters of credit | $ | 85.8 | $ | 80.7 | $ | 4.3 | $ | 0.8 | $ | — |
(1) | Indebtedness amounts reflect the principal amount of our senior term loan, senior notes and credit facility. |
(2) | Estimated interest payments are calculated assuming current interest rates over minimum maturity periods specified in debt agreements. Debt may be repaid sooner or later than such minimum maturity periods (unaudited). |
(3) | Other short-term and long-term obligations include estimates of future minimum contribution requirements under our U.S. and non-U.S. defined benefit pension and postretirement plans. These estimates are based on current legislation in the countries we operate within and are subject to change. Other short-term and long-term obligations also include income tax liabilities related to uncertain income tax positions connected with ongoing income tax audits in various jurisdictions. |
• Discount rates | • Inflation |
• Salary growth | • Expected return on plan assets |
• Retirement rates | • Mortality rates |
• | Our inflation assumption is based on an evaluation of external market indicators. |
• | The salary growth assumptions reflect our long-term actual experience, the near-term outlook and assumed inflation. |
• | The expected return on plan asset assumptions reflects asset allocations, investment strategy, historical experience and the views of investment managers, and reflects a projection of the expected arithmetic returns over ten years. |
• | Retirement and termination rates primarily are based on actual plan experience and actuarial standards of practice. |
• | The mortality rates for the U.K. defined benefit pension plan was updated in 2015 to reflect expected improvements in the life expectancy of the plan participants. The mortality table for the U.S. defined benefit pension plans were updated in 2015 to reflect the Society of Actuaries’ most recent findings on the topic of mortality. |
• | The fair value of assets used to determine the expected return on assets does not reflect any delayed recognition of asset gains and losses. |
• Health care cost trends | • Inflation |
• Discount rates | • Medical coverage elections |
• Retirement rates | • Mortality rates |
One Percentage Point Increase | One Percentage Point Decrease | ||||||
Effect on service and interest cost | $ | 0.2 | $ | (0.2 | ) | ||
Effect on accumulated benefit obligation | $ | 3.2 | $ | (2.7 | ) |
Page | |
Years Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Net sales | $ | 7,467.3 | $ | 9,723.7 | $ | 10,786.9 | |||||
Cost of goods sold | 5,906.7 | 7,657.4 | 8,396.3 | ||||||||
Gross profit | 1,560.6 | 2,066.3 | 2,390.6 | ||||||||
Selling, general and administrative expenses | 852.3 | 995.4 | 1,088.7 | ||||||||
Engineering expenses | 282.2 | 337.0 | 353.4 | ||||||||
Restructuring and other infrequent expenses | 22.3 | 46.4 | — | ||||||||
Amortization of intangibles | 42.7 | 41.0 | 47.8 | ||||||||
Income from operations | 361.1 | 646.5 | 900.7 | ||||||||
Interest expense, net | 45.4 | 58.4 | 58.0 | ||||||||
Other expense, net | 36.3 | 49.1 | 40.1 | ||||||||
Income before income taxes and equity in net earnings of affiliates | 279.4 | 539.0 | 802.6 | ||||||||
Income tax provision | 72.5 | 187.7 | 258.5 | ||||||||
Income before equity in net earnings of affiliates | 206.9 | 351.3 | 544.1 | ||||||||
Equity in net earnings of affiliates | 57.1 | 52.9 | 48.2 | ||||||||
Net income | 264.0 | 404.2 | 592.3 | ||||||||
Net loss attributable to noncontrolling interests | 2.4 | 6.2 | 4.9 | ||||||||
Net income attributable to AGCO Corporation and subsidiaries | $ | 266.4 | $ | 410.4 | $ | 597.2 | |||||
Net income per common share attributable to AGCO Corporation and subsidiaries: | |||||||||||
Basic | $ | 3.06 | $ | 4.39 | $ | 6.14 | |||||
Diluted | $ | 3.06 | $ | 4.36 | $ | 6.01 | |||||
Cash dividends declared and paid per common share | $ | 0.48 | $ | 0.44 | $ | 0.40 | |||||
Weighted average number of common and common equivalent shares outstanding: | |||||||||||
Basic | 87.0 | 93.4 | 97.3 | ||||||||
Diluted | 87.1 | 94.2 | 99.4 |
Years Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Net income | $ | 264.0 | $ | 404.2 | $ | 592.3 | |||||
Other comprehensive loss, net of reclassification adjustments: | |||||||||||
Defined benefit pension plans, net of taxes: | |||||||||||
Prior service cost arising during year | (4.7 | ) | — | — | |||||||
Net loss recognized due to settlement | 0.2 | 0.4 | — | ||||||||
Net gain recognized due to curtailment | — | (0.4 | ) | — | |||||||
Net actuarial gain (loss) arising during year | 2.1 | (54.8 | ) | 45.2 | |||||||
Amortization of prior service cost included in net periodic pension cost | 0.4 | 0.6 | 0.6 | ||||||||
Amortization of net actuarial losses included in net periodic pension cost | 6.3 | 7.3 | 10.7 | ||||||||
Derivative adjustments: | |||||||||||
Net changes in fair value of derivatives | (4.6 | ) | (1.4 | ) | (1.4 | ) | |||||
Net losses reclassified from accumulated other comprehensive loss into income | 2.7 | 1.5 | 0.5 | ||||||||
Foreign currency translation adjustments | (558.2 | ) | (349.3 | ) | (87.2 | ) | |||||
Other comprehensive loss, net of reclassification adjustments | (555.8 | ) | (396.1 | ) | (31.6 | ) | |||||
Comprehensive (loss) income | (291.8 | ) | 8.1 | 560.7 | |||||||
Comprehensive loss attributable to noncontrolling interests | 4.5 | 6.5 | 5.2 | ||||||||
Comprehensive (loss) income attributable to AGCO Corporation and subsidiaries | $ | (287.3 | ) | $ | 14.6 | $ | 565.9 |
December 31, 2015 | December 31, 2014 | ||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 426.7 | $ | 363.7 | |||
Accounts and notes receivable, net | 836.8 | 963.8 | |||||
Inventories, net | 1,423.4 | 1,750.7 | |||||
Other current assets | 211.4 | 232.5 | |||||
Total current assets | 2,898.3 | 3,310.7 | |||||
Property, plant and equipment, net | 1,347.1 | 1,530.4 | |||||
Investment in affiliates | 392.9 | 424.1 | |||||
Deferred tax assets | 100.7 | 215.9 | |||||
Other assets | 140.1 | 141.1 | |||||
Intangible assets, net | 507.7 | 553.8 | |||||
Goodwill | 1,114.5 | 1,192.8 | |||||
Total assets | $ | 6,501.3 | $ | 7,368.8 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current Liabilities: | |||||||
Current portion of long-term debt | $ | 89.0 | $ | 94.3 | |||
Senior term loan | 217.2 | — | |||||
Accounts payable | 625.6 | 670.2 | |||||
Accrued expenses | 1,106.9 | 1,244.1 | |||||
Other current liabilities | 146.7 | 208.3 | |||||
Total current liabilities | 2,185.4 | 2,216.9 | |||||
Long-term debt, less current portion | 928.8 | 997.6 | |||||
Pensions and postretirement health care benefits | 233.9 | 269.0 | |||||
Deferred tax liabilities | 86.4 | 211.7 | |||||
Other noncurrent liabilities | 183.5 | 176.7 | |||||
Total liabilities | 3,618.0 | 3,871.9 | |||||
Commitments and contingencies (Note 12) | |||||||
Stockholders’ Equity: | |||||||
AGCO Corporation stockholders’ equity: | |||||||
Preferred stock; $0.01 par value, 1,000,000 shares authorized, no shares issued or outstanding in 2015 and 2014 | — | — | |||||
Common stock; $0.01 par value, 150,000,000 shares authorized, 83,814,809 and 89,146,093 shares issued and outstanding at December 31, 2015 and 2014, respectively | 0.8 | 0.9 | |||||
Additional paid-in capital | 301.7 | 582.5 | |||||
Retained earnings | 3,996.0 | 3,771.6 | |||||
Accumulated other comprehensive loss | (1,460.2 | ) | (906.5 | ) | |||
Total AGCO Corporation stockholders’ equity | 2,838.3 | 3,448.5 | |||||
Noncontrolling interests | 45.0 | 48.4 | |||||
Total stockholders’ equity | 2,883.3 | 3,496.9 | |||||
Total liabilities and stockholders’ equity | $ | 6,501.3 | $ | 7,368.8 |
Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests | Total Stockholders’ Equity | Temporary Equity | |||||||||||||||||||||||||||||||||||||
Common Stock | Defined Benefit Pension Plans | Cumulative Translation Adjustment | Deferred (Losses) Gains on Derivatives | Accumulated Other Comprehensive Loss | ||||||||||||||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2012 | 96,815,998 | $ | 1.0 | $ | 1,082.9 | $ | 2,843.7 | $ | (262.9 | ) | $ | (217.2 | ) | $ | 0.7 | $ | (479.4 | ) | $ | 33.3 | $ | 3,481.5 | $ | 16.5 | ||||||||||||||||||
Net income (loss) | — | — | — | 597.2 | — | — | — | — | 4.4 | 601.6 | (9.3 | ) | ||||||||||||||||||||||||||||||
Payment of dividends to shareholders | — | — | — | (38.9 | ) | — | — | — | — | — | (38.9 | ) | ||||||||||||||||||||||||||||||
Issuance of restricted stock | 12,059 | — | 0.6 | — | — | — | — | — | — | 0.6 | ||||||||||||||||||||||||||||||||
Issuance of performance award stock | 491,692 | — | (14.7 | ) | — | — | — | — | — | — | (14.7 | ) | ||||||||||||||||||||||||||||||
SSARs exercised | 61,941 | — | (2.2 | ) | — | — | — | — | — | — | (2.2 | ) | ||||||||||||||||||||||||||||||
Stock compensation | — | — | 34.0 | — | — | — | — | — | — | 34.0 | ||||||||||||||||||||||||||||||||
Excess tax benefit of stock awards | — | — | 11.4 | — | — | — | — | — | — | 11.4 | ||||||||||||||||||||||||||||||||
Conversion of 11/4% convertible senior subordinated notes | 286 | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Distribution to noncontrolling interest | — | — | — | — | — | — | — | — | (3.1 | ) | (3.1 | ) | ||||||||||||||||||||||||||||||
Changes in noncontrolling interest | — | — | (2.3 | ) | — | — | — | — | — | — | (2.3 | ) | 2.3 | |||||||||||||||||||||||||||||
Purchases and retirement of common stock | (19,510 | ) | — | (1.0 | ) | — | — | — | — | — | — | (1.0 | ) | |||||||||||||||||||||||||||||
Defined benefit pension plans, net of taxes: | ||||||||||||||||||||||||||||||||||||||||||
Net actuarial gain arising during year | — | — | — | — | 45.2 | — | — | 45.2 | — | 45.2 | ||||||||||||||||||||||||||||||||
Amortization of prior service cost included in net periodic pension cost | — | — | — | — | 0.6 | — | — | 0.6 | — | 0.6 | ||||||||||||||||||||||||||||||||
Amortization of net actuarial losses included in net periodic pension cost | — | — | — | — | 10.7 | — | — | 10.7 | — | 10.7 | ||||||||||||||||||||||||||||||||
Deferred gains and losses on derivatives, net | — | — | — | — | — | — | (0.9 | ) | (0.9 | ) | — | (0.9 | ) | |||||||||||||||||||||||||||||
Reclassification to temporary equity- Equity component of convertible senior subordinated notes | — | — | 9.2 | — | — | — | — | — | — | 9.2 | (9.2 | ) | ||||||||||||||||||||||||||||||
Change in cumulative translation adjustment | — | — | — | — | — | (86.9 | ) | — | (86.9 | ) | — | (86.9 | ) | (0.3 | ) | |||||||||||||||||||||||||||
Balance, December 31, 2013 | 97,362,466 | 1.0 | 1,117.9 | 3,402.0 | (206.4 | ) | (304.1 | ) | (0.2 | ) | (510.7 | ) | 34.6 | 4,044.8 | — | |||||||||||||||||||||||||||
Net income (loss) | — | — | — | 410.4 | — | — | — | — | 0.1 | 410.5 | (6.3 | ) | ||||||||||||||||||||||||||||||
Payment of dividends to shareholders | — | — | — | (40.8 | ) | — | — | — | — | — | (40.8 | ) | ||||||||||||||||||||||||||||||
Issuance of restricted stock | 14,907 | — | 0.9 | — | — | — | — | — | — | 0.9 | ||||||||||||||||||||||||||||||||
Issuance of performance award stock | 367,100 | — | (11.8 | ) | — | — | — | — | — | — | (11.8 | ) | ||||||||||||||||||||||||||||||
SSARs exercised | 30,477 | — | (1.2 | ) | — | — | — | — | — | — | (1.2 | ) | ||||||||||||||||||||||||||||||
Stock compensation | — | — | (11.7 | ) | — | — | — | — | — | — | (11.7 | ) | ||||||||||||||||||||||||||||||
Shortfall in tax benefit of stock awards | — | — | (0.2 | ) | — | — | — | — | — | — | (0.2 | ) | ||||||||||||||||||||||||||||||
Conversion of 11/4% convertible senior subordinated notes | 1,437,465 | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Investment by noncontrolling interest | — | — | — | — | — | — | — | — | 16.1 | 16.1 | ||||||||||||||||||||||||||||||||
Distribution to noncontrolling interest | — | — | — | — | — | — | — | — | (2.4 | ) | (2.4 | ) | ||||||||||||||||||||||||||||||
Changes in noncontrolling interest | — | — | (11.8 | ) | — | — | — | — | — | — | (11.8 | ) | 6.6 | |||||||||||||||||||||||||||||
Purchases and retirement of common stock | (10,066,322 | ) | (0.1 | ) | (499.6 | ) | — | — | — | — | — | — | (499.7 | ) | ||||||||||||||||||||||||||||
Defined benefit pension plans, net of taxes: | ||||||||||||||||||||||||||||||||||||||||||
Net loss recognized due to settlement | — | — | — | — | 0.4 | — | — | 0.4 | — | 0.4 | ||||||||||||||||||||||||||||||||
Net gain recognized due to curtailment | — | — | — | — | (0.4 | ) | — | — | (0.4 | ) | — | (0.4 | ) | |||||||||||||||||||||||||||||
Net actuarial loss arising during year | — | — | — | — | (54.8 | ) | — | — | (54.8 | ) | — | (54.8 | ) | |||||||||||||||||||||||||||||
Amortization of prior service cost included in net periodic pension cost | — | — | — | — | 0.6 | — | — | 0.6 | — | 0.6 | ||||||||||||||||||||||||||||||||
Amortization of net actuarial losses included in net periodic pension cost | — | — | — | — | 7.3 | — | — | 7.3 | — | 7.3 | ||||||||||||||||||||||||||||||||
Deferred gains and losses on derivatives, net | — | — | — | — | — | — | 0.1 | 0.1 | — | 0.1 | ||||||||||||||||||||||||||||||||
Change in cumulative translation adjustment | — | — | — | — | — | (349.0 | ) | — | (349.0 | ) | — | (349.0 | ) | (0.3 | ) | |||||||||||||||||||||||||||
Balance, December 31, 2014 | 89,146,093 | 0.9 | 582.5 | 3,771.6 | (253.3 | ) | (653.1 | ) | (0.1 | ) | (906.5 | ) | 48.4 | 3,496.9 | — | |||||||||||||||||||||||||||
Net income (loss) | — | — | — | 266.4 | — | — | — | — | (2.4 | ) | 264.0 | |||||||||||||||||||||||||||||||
Payment of dividends to shareholders | — | — | — | (42.0 | ) | — | — | — | — | — | (42.0 | ) | ||||||||||||||||||||||||||||||
Issuance of restricted stock | 15,711 | — | 0.8 | — | — | — | — | — | — | 0.8 | ||||||||||||||||||||||||||||||||
Issuance of performance award stock | 172,759 | — | (5.6 | ) | — | — | — | — | — | — | (5.6 | ) | ||||||||||||||||||||||||||||||
SSARs exercised | 22,176 | — | (0.7 | ) | — | — | — | — | — | — | (0.7 | ) | ||||||||||||||||||||||||||||||
Stock compensation | — | — | 11.4 | — | — | — | — | — | — | 11.4 | ||||||||||||||||||||||||||||||||
Excess tax benefit of stock awards | — | — | 0.7 | — | — | — | — | — | — | 0.7 | ||||||||||||||||||||||||||||||||
Changes in noncontrolling interest | — | — | — | — | — | — | — | — | 1.1 | 1.1 | ||||||||||||||||||||||||||||||||
Purchases and retirement of common stock | (5,541,930 | ) | (0.1 | ) | (287.4 | ) | — | — | — | — | — | — | (287.5 | ) | ||||||||||||||||||||||||||||
Defined benefit pension plans, net of taxes: | ||||||||||||||||||||||||||||||||||||||||||
Prior service cost arising during year | — | — | — | — | (4.7 | ) | — | — | (4.7 | ) | — | (4.7 | ) | |||||||||||||||||||||||||||||
Net loss recognized due to settlement | — | — | — | — | 0.2 | — | — | 0.2 | — | 0.2 | ||||||||||||||||||||||||||||||||
Net actuarial gain arising during year | — | — | — | — | 2.1 | — | — | 2.1 | — | 2.1 | ||||||||||||||||||||||||||||||||
Amortization of prior service cost included in net periodic pension cost | — | — | — | — | 0.4 | — | — | 0.4 | — | 0.4 | ||||||||||||||||||||||||||||||||
Amortization of net actuarial losses included in net periodic pension cost | — | — | — | — | 6.3 | — | — | 6.3 | — | 6.3 | ||||||||||||||||||||||||||||||||
Deferred gains and losses on derivatives, net | — | — | — | — | — | — | (1.9 | ) | (1.9 | ) | — | (1.9 | ) | |||||||||||||||||||||||||||||
Change in cumulative translation adjustment | — | — | — | — | — | (556.1 | ) | — | (556.1 | ) | (2.1 | ) | (558.2 | ) | ||||||||||||||||||||||||||||
Balance, December 31, 2015 | 83,814,809 | $ | 0.8 | $ | 301.7 | $ | 3,996.0 | $ | (249.0 | ) | $ | (1,209.2 | ) | $ | (2.0 | ) | $ | (1,460.2 | ) | $ | 45.0 | $ | 2,883.3 | $ | — |
Years Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 264.0 | $ | 404.2 | $ | 592.3 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation | 217.4 | 239.4 | 211.6 | ||||||||
Deferred debt issuance cost amortization | 2.0 | 2.7 | 3.5 | ||||||||
Amortization of intangibles | 42.7 | 41.0 | 47.8 | ||||||||
Amortization of debt discount | — | — | 9.2 | ||||||||
Stock compensation expense (credit) | 12.2 | (10.8 | ) | 34.6 | |||||||
Equity in net earnings of affiliates, net of cash received | (19.0 | ) | (25.4 | ) | (19.0 | ) | |||||
Deferred income tax (benefit) provision | (26.8 | ) | 3.6 | 21.7 | |||||||
Other | (0.1 | ) | 2.5 | 0.3 | |||||||
Changes in operating assets and liabilities, net of effects from purchase of businesses: | |||||||||||
Accounts and notes receivable, net | 3.8 | (103.9 | ) | (36.2 | ) | ||||||
Inventories, net | 117.6 | 111.4 | (356.9 | ) | |||||||
Other current and noncurrent assets | (49.3 | ) | 29.1 | 7.0 | |||||||
Accounts payable | 37.3 | (219.4 | ) | 54.7 | |||||||
Accrued expenses | (34.8 | ) | (71.2 | ) | 123.4 | ||||||
Other current and noncurrent liabilities | (42.8 | ) | 35.2 | 103.0 | |||||||
Total adjustments | 260.2 | 34.2 | 204.7 | ||||||||
Net cash provided by operating activities | 524.2 | 438.4 | 797.0 | ||||||||
Cash flows from investing activities: | |||||||||||
Purchases of property, plant and equipment | (211.4 | ) | (301.5 | ) | (391.8 | ) | |||||
Proceeds from sale of property, plant and equipment | 1.5 | 2.8 | 2.6 | ||||||||
Purchase of businesses, net of cash acquired | (25.4 | ) | (130.3 | ) | (9.5 | ) | |||||
Investments in unconsolidated affiliates | (3.8 | ) | (3.9 | ) | (10.0 | ) | |||||
Restricted cash and other | (1.7 | ) | — | — | |||||||
Net cash used in investing activities | (240.8 | ) | (432.9 | ) | (408.7 | ) | |||||
Cash flows from financing activities: | |||||||||||
Proceeds from debt obligations | 1,951.9 | 1,689.4 | 1,135.9 | ||||||||
Repayments of debt obligations | (1,769.5 | ) | (1,588.8 | ) | (1,194.0 | ) | |||||
Purchases and retirement of common stock | (287.5 | ) | (499.7 | ) | (1.0 | ) | |||||
Repurchase or conversion of convertible senior subordinated notes | — | (201.2 | ) | — | |||||||
Payment of dividends to stockholders | (42.0 | ) | (40.8 | ) | (38.9 | ) | |||||
Payment of minimum tax withholdings on stock compensation | (6.3 | ) | (13.2 | ) | (17.0 | ) | |||||
Payment of debt issuance costs | (0.7 | ) | (1.4 | ) | (0.1 | ) | |||||
Excess tax benefit related to stock compensation | 0.7 | — | 11.4 | ||||||||
Purchase of or distribution to noncontrolling interests | — | (6.1 | ) | (3.1 | ) | ||||||
Other | — | (0.2 | ) | — | |||||||
Net cash used in financing activities | (153.4 | ) | (662.0 | ) | (106.8 | ) | |||||
Effects of exchange rate changes on cash and cash equivalents | (67.0 | ) | (27.0 | ) | (15.6 | ) | |||||
Increase (decrease) in cash and cash equivalents | 63.0 | (683.5 | ) | 265.9 | |||||||
Cash and cash equivalents, beginning of year | 363.7 | 1,047.2 | 781.3 | ||||||||
Cash and cash equivalents, end of year | $ | 426.7 | $ | 363.7 | $ | 1,047.2 |
Year Ended December 31, 2015 | North America | South America | Europe/Africa/ Middle East | Asia/Pacific | Consolidated | |||||||||||||||||
0 to 6 months | $ | 1,536.5 | $ | 949.0 | $ | 4,132.2 | $ | 402.0 | $ | 7,019.7 | 94.0 | % | ||||||||||
7 to 12 months | 380.1 | — | 19.1 | — | 399.2 | 5.3 | % | |||||||||||||||
13 to 24 months | 48.4 | — | — | — | 48.4 | 0.7 | % | |||||||||||||||
$ | 1,965.0 | $ | 949.0 | $ | 4,151.3 | $ | 402.0 | $ | 7,467.3 | 100.0 | % |
2015 | 2014 | ||||||
Sales incentive discounts | $ | 24.5 | $ | 18.5 | |||
Doubtful accounts | 29.3 | 32.1 | |||||
$ | 53.8 | $ | 50.6 |
2015 | 2014 | ||||||
Finished goods | $ | 523.1 | $ | 616.6 | |||
Repair and replacement parts | 515.4 | 536.4 | |||||
Work in process | 97.5 | 130.5 | |||||
Raw materials | 287.4 | 467.2 | |||||
Inventories, net | $ | 1,423.4 | $ | 1,750.7 |
2015 | 2014 | ||||||
Land | $ | 105.7 | $ | 113.6 | |||
Buildings and improvements | 637.4 | 688.4 | |||||
Machinery and equipment | 1,966.8 | 2,039.9 | |||||
Furniture and fixtures | 120.0 | 127.6 | |||||
Gross property, plant and equipment | 2,829.9 | 2,969.5 | |||||
Accumulated depreciation and amortization | (1,482.8 | ) | (1,439.1 | ) | |||
Property, plant and equipment, net | $ | 1,347.1 | $ | 1,530.4 |
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 | |||||||||
Acquisition | 7.3 | — | — | — | 7.3 | ||||||||||||||
Adjustments related to income taxes | — | — | (8.0 | ) | — | (8.0 | ) | ||||||||||||
Foreign currency translation | — | (28.6 | ) | 16.3 | (0.7 | ) | (13.0 | ) | |||||||||||
Balance as of December 31, 2013 | 424.0 | 190.7 | 506.6 | 57.4 | 1,178.7 | ||||||||||||||
Acquisition | 89.6 | — | — | — | 89.6 | ||||||||||||||
Foreign currency translation | — | (21.0 | ) | (52.0 | ) | (2.5 | ) | (75.5 | ) | ||||||||||
Balance as of December 31, 2014 | 513.6 | 169.7 | 454.6 | 54.9 | 1,192.8 | ||||||||||||||
Acquisition | 5.1 | — | 9.3 | 7.8 | 22.2 | ||||||||||||||
Foreign currency translation | — | (55.3 | ) | (38.7 | ) | (6.5 | ) | (100.5 | ) | ||||||||||
Balance as of December 31, 2015 | $ | 518.7 | $ | 114.4 | $ | 425.2 | $ | 56.2 | $ | 1,114.5 |
Intangible Asset | Weighted-Average Useful Life | ||
Patents and technology | 13 | years | |
Customer relationships | 14 | years | |
Trademarks and trade names | 20 | years | |
Land use rights | 45 | years |
Trademarks and Trade Names | Customer Relationships | Patents and Technology | Land Use Rights | Total | |||||||||||||||
Gross carrying amounts: | |||||||||||||||||||
Balance as of December 31, 2013 | $ | 118.6 | $ | 502.7 | $ | 89.1 | $ | 14.9 | $ | 725.3 | |||||||||
Acquisition | 7.0 | 28.0 | 11.3 | — | 46.3 | ||||||||||||||
Settlement of purchase consideration | — | — | — | (4.8 | ) | (4.8 | ) | ||||||||||||
Foreign currency translation | (2.1 | ) | (16.9 | ) | (6.4 | ) | (0.4 | ) | (25.8 | ) | |||||||||
Balance as of December 31, 2014 | 123.5 | 513.8 | 94.0 | 9.7 | 741.0 | ||||||||||||||
Acquisition | 1.9 | 4.1 | 3.6 | — | 9.6 | ||||||||||||||
Foreign currency translation | (3.2 | ) | (25.6 | ) | (5.1 | ) | (0.6 | ) | (34.5 | ) | |||||||||
Balance as of December 31, 2015 | $ | 122.2 | $ | 492.3 | $ | 92.5 | $ | 9.1 | $ | 716.1 |
Trademarks and Trade Names | Customer Relationships | Patents and Technology | Land Use Rights | Total | |||||||||||||||
Accumulated amortization: | |||||||||||||||||||
Balance as of December 31, 2013 | $ | 31.0 | $ | 160.7 | $ | 59.0 | $ | 2.7 | $ | 253.4 | |||||||||
Amortization expense | 6.2 | 31.4 | 3.2 | 0.2 | 41.0 | ||||||||||||||
Foreign currency translation | (0.8 | ) | (11.3 | ) | (6.1 | ) | — | (18.2 | ) | ||||||||||
Balance as of December 31, 2014 | 36.4 | 180.8 | 56.1 | 2.9 | 276.2 | ||||||||||||||
Amortization expense | 6.6 | 32.0 | 3.9 | 0.2 | 42.7 | ||||||||||||||
Foreign currency translation | (1.1 | ) | (19.0 | ) | (4.9 | ) | (0.2 | ) | (25.2 | ) | |||||||||
Balance as of December 31, 2015 | $ | 41.9 | $ | 193.8 | $ | 55.1 | $ | 2.9 | $ | 293.7 |
Trademarks and Trade Names | |||
Indefinite-lived intangible assets: | |||
Balance as of December 31, 2013 | $ | 93.7 | |
Foreign currency translation | (4.7 | ) | |
Balance as of December 31, 2014 | 89.0 | ||
Foreign currency translation | (3.7 | ) | |
Balance as of December 31, 2015 | $ | 85.3 |
2015 | 2014 | ||||||
Reserve for volume discounts and sales incentives | $ | 443.3 | $ | 465.2 | |||
Warranty reserves | 195.2 | 245.7 | |||||
Accrued employee compensation and benefits | 213.7 | 232.8 | |||||
Accrued taxes | 87.3 | 108.4 | |||||
Other | 167.4 | 192.0 | |||||
$ | 1,106.9 | $ | 1,244.1 |
2015 | 2014 | 2013 | |||||||||
Balance at beginning of the year | $ | 284.6 | $ | 294.9 | $ | 256.9 | |||||
Acquisitions | 0.2 | 0.5 | — | ||||||||
Accruals for warranties issued during the year | 152.6 | 214.1 | 200.3 | ||||||||
Settlements made (in cash or in kind) during the year | (186.2 | ) | (205.5 | ) | (165.7 | ) | |||||
Foreign currency translation | (20.9 | ) | (19.4 | ) | 3.4 | ||||||
Balance at the end of the year | $ | 230.3 | $ | 284.6 | $ | 294.9 |
Years Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Cost of goods sold | $ | 0.9 | $ | (0.9 | ) | $ | 2.3 | ||||
Selling, general and administrative expenses | 11.6 | (9.7 | ) | 32.6 | |||||||
Total stock compensation expense (credit) | $ | 12.5 | $ | (10.6 | ) | $ | 34.9 |
2015 | 2014 | 2013 | |||||||||
Interest expense | $ | 64.1 | $ | 71.9 | $ | 78.8 | |||||
Interest income | (18.7 | ) | (13.5 | ) | (20.8 | ) | |||||
$ | 45.4 | $ | 58.4 | $ | 58.0 |
2015 | 2014 | 2013 | |||||||||
Basic net income per share: | |||||||||||
Net income attributable to AGCO Corporation and subsidiaries | $ | 266.4 | $ | 410.4 | $ | 597.2 | |||||
Weighted average number of common shares outstanding | 87.0 | 93.4 | 97.3 | ||||||||
Basic net income per share attributable to AGCO Corporation and subsidiaries | $ | 3.06 | $ | 4.39 | $ | 6.14 | |||||
Diluted net income per share: | |||||||||||
Net income attributable to AGCO Corporation and subsidiaries | $ | 266.4 | $ | 410.4 | $ | 597.2 | |||||
Weighted average number of common shares outstanding | 87.0 | 93.4 | 97.3 | ||||||||
Dilutive SSARs, performance share awards and restricted stock units | 0.1 | 0.3 | 0.8 | ||||||||
Weighted average assumed conversion of contingently convertible senior subordinated notes | — | 0.5 | 1.3 | ||||||||
Weighted average number of common shares and common share equivalents outstanding for purposes of computing diluted net income per share | 87.1 | 94.2 | 99.4 | ||||||||
Diluted net income per share attributable to AGCO Corporation and subsidiaries | $ | 3.06 | $ | 4.36 | $ | 6.01 |
AGCO Corporation and Subsidiaries | Noncontrolling Interests | ||||||||||||||
2015 | 2015 | ||||||||||||||
Before-tax Amount | Income Taxes | After-tax Amount | After-tax Amount | ||||||||||||
Defined benefit pension plans | $ | 4.9 | $ | (0.6 | ) | $ | 4.3 | $ | — | ||||||
Net loss on derivatives | (3.1 | ) | 1.2 | (1.9 | ) | — | |||||||||
Foreign currency translation adjustments | (556.1 | ) | — | (556.1 | ) | (2.1 | ) | ||||||||
Total components of other comprehensive loss | $ | (554.3 | ) | $ | 0.6 | $ | (553.7 | ) | $ | (2.1 | ) |
AGCO Corporation and Subsidiaries | Noncontrolling Interests | ||||||||||||||
2014 | 2014 | ||||||||||||||
Before-tax Amount | Income Taxes | After-tax Amount | After-tax Amount | ||||||||||||
Defined benefit pension plans | $ | (62.1 | ) | $ | 15.2 | $ | (46.9 | ) | $ | — | |||||
Net gain on derivatives | 0.1 | — | 0.1 | — | |||||||||||
Foreign currency translation adjustments | (349.0 | ) | — | (349.0 | ) | (0.3 | ) | ||||||||
Total components of other comprehensive loss | $ | (411.0 | ) | $ | 15.2 | $ | (395.8 | ) | $ | (0.3 | ) |
AGCO Corporation and Subsidiaries | Noncontrolling Interests | ||||||||||||||
2013 | 2013 | ||||||||||||||
Before-tax Amount | Income Taxes | After-tax Amount | After-tax Amount | ||||||||||||
Defined benefit pension plans | $ | 75.8 | $ | (19.3 | ) | $ | 56.5 | $ | — | ||||||
Net loss on derivatives | (1.4 | ) | 0.5 | (0.9 | ) | — | |||||||||
Foreign currency translation adjustments | (86.9 | ) | — | (86.9 | ) | (0.3 | ) | ||||||||
Total components of other comprehensive loss | $ | (12.5 | ) | $ | (18.8 | ) | $ | (31.3 | ) | $ | (0.3 | ) |
Intangible Asset | Amount | Weighted-Average Useful Life | |||||
Customer relationships | $ | 4.1 | 10 | years | |||
Technology | 3.6 | 10 | years | ||||
Trademarks | 1.9 | 10 | years | ||||
$ | 9.6 |
Intangible Asset | Amount | Weighted-Average Useful Life | |||||
Customer relationships | $ | 28.0 | 15 | years | |||
Technology | 11.3 | 15 | years | ||||
Trademarks | 7.0 | 16 | years | ||||
$ | 46.3 |
2015 | 2014 | ||||||
Finance joint ventures | $ | 359.4 | $ | 389.0 | |||
Manufacturing joint ventures | 18.1 | 19.6 | |||||
Other affiliates | 15.4 | 15.5 | |||||
$ | 392.9 | $ | 424.1 |
2015 | 2014 | 2013 | |||||||||
Finance joint ventures | $ | 53.8 | $ | 48.8 | $ | 48.8 | |||||
Manufacturing and other joint ventures | 3.3 | 4.1 | (0.6 | ) | |||||||
$ | 57.1 | $ | 52.9 | $ | 48.2 |
December 31, | |||||||
2015 | 2014 | ||||||
Total assets | $ | 7,491.2 | $ | 8,836.4 | |||
Total liabilities | 6,757.8 | 8,042.9 | |||||
Partners’ equity | 733.4 | 793.5 |
For the Years Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Revenues | $ | 313.0 | $ | 383.4 | $ | 389.2 | |||||
Costs | 158.1 | 234.7 | 239.4 | ||||||||
Income before income taxes | $ | 154.9 | $ | 148.7 | $ | 149.8 |
2015 | 2014 | 2013 | |||||||||
United States | $ | (49.1 | ) | $ | 63.5 | $ | 133.1 | ||||
Foreign | 328.5 | 475.5 | 669.5 | ||||||||
Income before income taxes and equity in net earnings of affiliates | $ | 279.4 | $ | 539.0 | $ | 802.6 |
2015 | 2014 | 2013 | |||||||||
Current: | |||||||||||
United States: | |||||||||||
Federal | $ | (1.3 | ) | $ | 12.6 | $ | 9.2 | ||||
State | 2.8 | 2.8 | 9.9 | ||||||||
Foreign | 97.8 | 168.7 | 217.7 | ||||||||
99.3 | 184.1 | 236.8 | |||||||||
Deferred: | |||||||||||
United States: | |||||||||||
Federal | (19.0 | ) | (0.4 | ) | 30.2 | ||||||
State | — | — | — | ||||||||
Foreign | (7.8 | ) | 4.0 | (8.5 | ) | ||||||
(26.8 | ) | 3.6 | 21.7 | ||||||||
$ | 72.5 | $ | 187.7 | $ | 258.5 |
2015 | 2014 | 2013 | |||||||||
Provision for income taxes at United States federal statutory rate of 35% | $ | 97.8 | $ | 188.7 | $ | 280.9 | |||||
State and local income taxes, net of federal income tax effects | (2.0 | ) | 2.6 | 5.6 | |||||||
Taxes on foreign income which differ from the United States statutory rate | (34.9 | ) | (33.4 | ) | (34.7 | ) | |||||
Tax effect of permanent differences | 7.1 | (10.3 | ) | (7.6 | ) | ||||||
Change in valuation allowance | (4.5 | ) | 22.8 | 9.3 | |||||||
Change in tax contingency reserves | 15.4 | 25.2 | 25.7 | ||||||||
Research and development tax credits | (4.9 | ) | (7.1 | ) | (19.9 | ) | |||||
Other | (1.5 | ) | (0.8 | ) | (0.8 | ) | |||||
$ | 72.5 | $ | 187.7 | $ | 258.5 |
2015 | 2014 | ||||||
Deferred Tax Assets: | |||||||
Net operating loss carryforwards | $ | 74.0 | $ | 75.7 | |||
Sales incentive discounts | 86.6 | 85.5 | |||||
Inventory valuation reserves | 40.3 | 33.9 | |||||
Pensions and postretirement health care benefits | 63.4 | 76.7 | |||||
Warranty and other reserves | 82.3 | 104.8 | |||||
Research and development tax credits | 9.3 | — | |||||
Other | 34.1 | 53.4 | |||||
Total gross deferred tax assets | 390.0 | 430.0 | |||||
Valuation allowance | (75.8 | ) | (93.3 | ) | |||
Total net deferred tax assets | 314.2 | 336.7 | |||||
Deferred Tax Liabilities: | |||||||
Tax over book depreciation and amortization | 275.1 | 311.0 | |||||
Other | 24.8 | 21.5 | |||||
Total deferred tax liabilities | 299.9 | 332.5 | |||||
Net deferred tax assets | $ | 14.3 | $ | 4.2 | |||
Amounts recognized in Consolidated Balance Sheets: | |||||||
Deferred tax assets - noncurrent | $ | 100.7 | $ | 215.9 | |||
Deferred tax liabilities - noncurrent | (86.4 | ) | (211.7 | ) | |||
$ | 14.3 | $ | 4.2 |
2015 | 2014 | ||||||
Gross unrecognized income tax benefits | $ | 130.6 | $ | 122.2 | |||
Additions for tax positions of the current year | 14.4 | 21.8 | |||||
Additions for tax positions of prior years | 7.1 | 11.0 | |||||
Additions for tax positions related to acquisitions | — | (0.6 | ) | ||||
Reductions for tax positions of prior years for: | |||||||
Changes in judgments | (0.3 | ) | (2.2 | ) | |||
Settlements during the period | — | (1.9 | ) | ||||
Lapses of applicable statute of limitations | (5.8 | ) | (5.4 | ) | |||
Foreign currency translation | (13.0 | ) | (14.3 | ) | |||
Gross unrecognized income tax benefits | $ | 133.0 | $ | 130.6 |
December 31, 2015 | December 31, 2014 | ||||||
4½% Senior term loan due 2016 | $ | 217.2 | $ | 242.0 | |||
Credit facility, expires 2020 | 338.9 | 404.4 | |||||
1.056% Senior term loan due 2020 | 217.2 | — | |||||
57/8% Senior notes due 2021 | 297.4 | 300.0 | |||||
Other long-term debt | 164.3 | 145.5 | |||||
1,235.0 | 1,091.9 | ||||||
Less: 4½% Senior term loan due 2016 | (217.2 | ) | — | ||||
Current portion of other long-term debt | (89.0 | ) | (94.3 | ) | |||
Total indebtedness, less current portion | $ | 928.8 | $ | 997.6 |
2017 | $ | 33.2 | |
2018 | 20.0 | ||
2019 | 7.6 | ||
2020 | 570.6 | ||
Thereafter | 297.4 | ||
$ | 928.8 |
Years Ended December 31, | |||||||
2014 | 2013 | ||||||
1¼% Convertible senior subordinated notes: | |||||||
Interest expense | $ | 0.9 | $ | 11.7 |
Pension benefits | 2015 | 2014(1) | 2013 | |||||||||
Service cost | $ | 18.7 | $ | 16.8 | $ | 18.0 | ||||||
Interest cost | 31.2 | 37.3 | 35.4 | |||||||||
Expected return on plan assets | (44.4 | ) | (44.5 | ) | (37.6 | ) | ||||||
Amortization of net actuarial losses | 8.0 | 9.5 | 14.0 | |||||||||
Amortization of prior service cost | 0.4 | 0.8 | 0.8 | |||||||||
Net loss recognized due to settlement | 0.2 | 0.4 | 0.1 | |||||||||
Net gain recognized due to curtailment | — | (0.5 | ) | — | ||||||||
Special termination benefits | 0.5 | 1.3 | — | |||||||||
Net annual pension cost | $ | 14.6 | $ | 21.0 | $ | 30.7 |
(1) | Rounding may impact summation of amounts. |
2015 | 2014 | 2013 | ||||||
All plans: | ||||||||
Weighted average discount rate | 3.5 | % | 4.4 | % | 4.3 | % | ||
Weighted average expected long-term rate of return on plan assets | 6.8 | % | 6.9 | % | 6.8 | % | ||
Rate of increase in future compensation | 2.25%-5.0% | 2.5-5.0% | 2.5-5.0% | |||||
U.S.-based plans: | ||||||||
Weighted average discount rate | 4.15 | % | 4.75 | % | 3.85 | % | ||
Weighted average expected long-term rate of return on plan assets(1) | 6.0 | % | 7.0 | % | 7.0 | % | ||
Rate of increase in future compensation(2) | 5.0 | % | 5.0 | % | 5.0 | % |
(1) | Applicable for U.S. funded, qualified plans. |
(2) | Applicable for U.S. unfunded, nonqualified plan. |
Postretirement benefits | 2015 | 2014 | 2013 | |||||||||
Service cost | $ | — | $ | 0.1 | $ | 0.1 | ||||||
Interest cost | 1.3 | 1.6 | 1.7 | |||||||||
Amortization of prior service cost | 0.2 | 0.2 | 0.2 | |||||||||
Amortization of net actuarial losses | 0.1 | 0.1 | 0.5 | |||||||||
Other | — | 0.2 | — | |||||||||
Net annual postretirement benefit cost | $ | 1.6 | $ | 2.2 | $ | 2.5 | ||||||
Weighted average discount rate | 4.6 | % | 5.3 | % | 4.7 | % |
Pension and ENPP Benefits | Postretirement Benefits | |||||||||||||||
Change in benefit obligation | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Benefit obligation at beginning of year | $ | 926.8 | $ | 888.2 | $ | 29.6 | $ | 30.3 | ||||||||
Service cost | 18.7 | 16.8 | — | 0.1 | ||||||||||||
Interest cost | 31.2 | 37.3 | 1.3 | 1.6 | ||||||||||||
Plan participants’ contributions | 1.2 | 1.3 | — | — | ||||||||||||
Actuarial (gains) losses | (41.7 | ) | 109.6 | (1.7 | ) | (0.7 | ) | |||||||||
Amendments | 8.3 | — | — | — | ||||||||||||
Settlements | (0.5 | ) | (4.2 | ) | — | — | ||||||||||
Curtailments | — | (7.3 | ) | — | — | |||||||||||
Benefits paid | (50.8 | ) | (55.9 | ) | (1.2 | ) | (1.6 | ) | ||||||||
Special termination benefits and other | 0.5 | 1.3 | — | 0.2 | ||||||||||||
Foreign currency exchange rate changes | (49.3 | ) | (60.3 | ) | (0.7 | ) | (0.3 | ) | ||||||||
Benefit obligation at end of year | $ | 844.4 | $ | 926.8 | $ | 27.3 | $ | 29.6 | ||||||||
Pension and ENPP Benefits | Postretirement Benefits | |||||||||||||||
Change in plan assets | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Fair value of plan assets at beginning of year | $ | 677.2 | $ | 660.7 | $ | — | $ | — | ||||||||
Actual return on plan assets | 5.2 | 73.7 | — | — | ||||||||||||
Employer contributions | 34.0 | 43.4 | 1.2 | 1.6 | ||||||||||||
Plan participants’ contributions | 1.2 | 1.3 | — | — | ||||||||||||
Benefits paid | (50.8 | ) | (55.9 | ) | (1.2 | ) | (1.6 | ) | ||||||||
Settlements | (0.5 | ) | (4.2 | ) | — | — | ||||||||||
Foreign currency exchange rate changes | (35.6 | ) | (41.8 | ) | — | — | ||||||||||
Fair value of plan assets at end of year | $ | 630.7 | $ | 677.2 | $ | — | $ | — | ||||||||
Funded status | $ | (213.7 | ) | $ | (249.6 | ) | $ | (27.3 | ) | $ | (29.6 | ) | ||||
Unrecognized net actuarial losses | 319.0 | 329.7 | 1.4 | 3.3 | ||||||||||||
Unrecognized prior service cost | 11.2 | 3.2 | 3.6 | 3.7 | ||||||||||||
Accumulated other comprehensive loss | (330.2 | ) | (332.9 | ) | (5.0 | ) | (7.0 | ) | ||||||||
Net amount recognized | $ | (213.7 | ) | $ | (249.6 | ) | $ | (27.3 | ) | $ | (29.6 | ) |
Amounts recognized in Consolidated Balance Sheets: | ||||||||||||||||
Other long-term asset | $ | 0.2 | $ | — | $ | — | $ | — | ||||||||
Other current liabilities | (3.5 | ) | (3.3 | ) | (1.5 | ) | (1.5 | ) | ||||||||
Accrued expenses | (2.3 | ) | (5.4 | ) | — | — | ||||||||||
Pensions and postretirement health care benefits (noncurrent) | (208.1 | ) | (240.9 | ) | (25.8 | ) | (28.1 | ) | ||||||||
Net amount recognized | $ | (213.7 | ) | $ | (249.6 | ) | $ | (27.3 | ) | $ | (29.6 | ) |
Before-Tax Amount | Income Tax | After-Tax Amount | ||||||||||
Accumulated other comprehensive loss as of December 31, 2013 | $ | (279.4 | ) | $ | (73.0 | ) | $ | (206.4 | ) | |||
Net loss recognized due to settlement | 0.6 | 0.2 | 0.4 | |||||||||
Net gain recognized due to curtailment | (0.5 | ) | (0.1 | ) | (0.4 | ) | ||||||
Net actuarial loss arising during the year | (72.8 | ) | (18.0 | ) | (54.8 | ) | ||||||
Amortization of prior service cost | 1.0 | 0.4 | 0.6 | |||||||||
Amortization of net actuarial losses | 9.6 | 2.3 | 7.3 | |||||||||
Accumulated other comprehensive loss as of December 31, 2014 | $ | (341.5 | ) | $ | (88.2 | ) | $ | (253.3 | ) | |||
Prior service cost arising during the year | (8.3 | ) | (3.6 | ) | (4.7 | ) | ||||||
Net loss recognized due to settlement | 0.3 | 0.1 | 0.2 | |||||||||
Net actuarial gain arising during the year | 4.2 | 2.1 | 2.1 | |||||||||
Amortization of prior service cost | 0.6 | 0.2 | 0.4 | |||||||||
Amortization of net actuarial losses | 8.1 | 1.8 | 6.3 | |||||||||
Accumulated other comprehensive loss as of December 31, 2015 | $ | (336.6 | ) | $ | (87.6 | ) | $ | (249.0 | ) |
2015 | 2014 | ||||
All plans: | |||||
Weighted average discount rate | 3.6 | % | 3.5 | % | |
Rate of increase in future compensation | 2.0%-5.0% | 2.5-5.0% | |||
U.S.-based plans: | |||||
Weighted average discount rate | 4.60 | % | 4.15 | % | |
Rate of increase in future compensation(1) | 5.0 | % | 5.0 | % |
(1) | Applicable for U.S. unfunded, nonqualified plan. |
One Percentage Point Increase | One Percentage Point Decrease | ||||||
Effect on service and interest cost | $ | 0.2 | $ | (0.2 | ) | ||
Effect on accumulated benefit obligation | $ | 3.2 | $ | (2.7 | ) |
2016 | $ | 48.0 | |
2017 | 49.5 | ||
2018 | 50.2 | ||
2019 | 50.4 | ||
2020 | 51.5 | ||
2021 through 2025 | 279.5 | ||
$ | 529.1 |
2016 | $ | 1.5 | |
2017 | 1.6 | ||
2018 | 1.7 | ||
2019 | 1.7 | ||
2020 | 1.7 | ||
2021 through 2025 | 9.4 | ||
$ | 17.6 |
Asset Category | 2015 | 2014 | ||||
Large and small cap domestic equity securities | 28 | % | 28 | % | ||
International equity securities | 10 | % | 10 | % | ||
Domestic fixed income securities | 44 | % | 42 | % | ||
Other investments | 18 | % | 20 | % | ||
Total | 100 | % | 100 | % |
Asset Category | 2015 | 2014 | ||||
Equity securities | 44 | % | 42 | % | ||
Fixed income securities | 36 | % | 38 | % | ||
Other investments | 20 | % | 20 | % | ||
Total | 100 | % | 100 | % |
Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Equity securities: | |||||||||||||||
Global equities | $ | 129.0 | $ | 129.0 | $ | — | $ | — | |||||||
Non-U.S. equities | 3.9 | 3.9 | — | — | |||||||||||
U.K. equities | 124.8 | 124.8 | — | — | |||||||||||
U.S. large cap equities | 7.1 | 7.1 | — | — | |||||||||||
U.S. small cap equities | 3.6 | 3.6 | — | — | |||||||||||
Total equity securities | 268.4 | 268.4 | — | — | |||||||||||
Fixed income: | |||||||||||||||
Aggregate fixed income | 16.8 | 16.8 | — | — | |||||||||||
International fixed income | 204.8 | 204.8 | — | — | |||||||||||
Total fixed income share(1) | 221.6 | 221.6 | — | — | |||||||||||
Cash and equivalents: | |||||||||||||||
Cash | 7.4 | — | 7.4 | — | |||||||||||
Total cash and equivalents | 7.4 | — | 7.4 | — | |||||||||||
Alternative investments(2) | 111.6 | — | — | 111.6 | |||||||||||
Miscellaneous funds(3) | 21.7 | — | — | 21.7 | |||||||||||
Total assets | $ | 630.7 | $ | 490.0 | $ | 7.4 | $ | 133.3 |
(1) | 45% of “fixed income” securities are in investment-grade corporate bonds; 32% are in government treasuries; and 23% are in other various fixed income securities. |
(2) | 34% of “alternative investments” are in long-short equity funds; 26% are in event-driven funds; 13% are in relative value funds; 13% are in credit funds; 12% are distributed in hedged and non-hedged funds; and 2% are in multi-strategy funds. |
(3) | “Miscellaneous funds” is comprised of insurance contracts in Finland, Norway and Switzerland. |
Total | Alternative Investments | Miscellaneous Funds | |||||||||
Beginning balance as of December 31, 2014 | $ | 147.1 | $ | 124.3 | $ | 22.8 | |||||
Actual return on plan assets: | |||||||||||
(a) Relating to assets still held at reporting date | (0.6 | ) | (2.2 | ) | 1.6 | ||||||
(b) Relating to assets sold during period | — | — | — | ||||||||
Purchases, sales and /or settlements | (4.5 | ) | (4.3 | ) | (0.2 | ) | |||||
Foreign currency exchange rate changes | (8.7 | ) | (6.2 | ) | (2.5 | ) | |||||
Ending balance as of December 31, 2015 | $ | 133.3 | $ | 111.6 | $ | 21.7 |
Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Equity securities: | |||||||||||||||
Global equities | $ | 135.9 | $ | 135.9 | $ | — | $ | — | |||||||
Non-U.S. equities | 4.3 | 4.3 | — | — | |||||||||||
U.K. equities | 122.8 | 122.8 | — | — | |||||||||||
U.S. large cap equities | 7.1 | 7.1 | — | — | |||||||||||
U.S. small cap equities | 4.5 | 4.5 | — | — | |||||||||||
Total equity securities | 274.6 | 274.6 | — | — | |||||||||||
Fixed income: | |||||||||||||||
Aggregate fixed income | 17.5 | 17.5 | — | — | |||||||||||
International fixed income | 230.5 | 230.5 | — | — | |||||||||||
Total fixed income share(1) | 248.0 | 248.0 | — | — | |||||||||||
Cash and equivalents: | |||||||||||||||
Cash | 7.5 | — | 7.5 | — | |||||||||||
Total cash and equivalents | 7.5 | — | 7.5 | — | |||||||||||
Alternative investments(2) | 124.3 | — | — | 124.3 | |||||||||||
Miscellaneous funds(3) | 22.8 | — | — | 22.8 | |||||||||||
Total assets | $ | 677.2 | $ | 522.6 | $ | 7.5 | $ | 147.1 |
(1) | 39% of “fixed income” securities are in government treasuries; 37% are in investment-grade corporate bonds; and 24% are in other various fixed income securities. |
(2) | 34% of “alternative investments” are in long-short equity funds; 31% are in event-driven funds; 12% are in relative value funds; 10% are in credit funds; 9% are distributed in hedged and non-hedged funds; and 4% are in multi-strategy funds. |
(3) | “Miscellaneous funds” is comprised of insurance contracts in Finland, Norway and Switzerland. |
Total | Alternative Investments | Miscellaneous Funds | |||||||||
Beginning balance as of December 31, 2013 | $ | 171.8 | $ | 146.0 | $ | 25.8 | |||||
Actual return on plan assets: | |||||||||||
(a) Relating to assets still held at reporting date | 6.3 | 5.1 | 1.2 | ||||||||
(b) Relating to assets sold during period | 2.3 | 2.3 | — | ||||||||
Purchases, sales and /or settlements | (22.6 | ) | (21.7 | ) | (0.9 | ) | |||||
Foreign currency exchange rate changes | (10.7 | ) | (7.4 | ) | (3.3 | ) | |||||
Ending balance as of December 31, 2014 | $ | 147.1 | $ | 124.3 | $ | 22.8 |
Defined Benefit Pension Plans | Cumulative Translation Adjustment | Deferred Net Gains (Losses) on Derivatives | Total | ||||||||||||
Accumulated other comprehensive loss, December 31, 2013 | $ | (206.4 | ) | $ | (304.1 | ) | $ | (0.2 | ) | $ | (510.7 | ) | |||
Other comprehensive loss before reclassifications | (54.8 | ) | (349.0 | ) | (1.4 | ) | (405.2 | ) | |||||||
Net losses reclassified from accumulated other comprehensive loss | 7.9 | — | 1.5 | 9.4 | |||||||||||
Other comprehensive (loss) income, net of reclassification adjustments | (46.9 | ) | (349.0 | ) | 0.1 | (395.8 | ) | ||||||||
Accumulated other comprehensive loss, December 31, 2014 | (253.3 | ) | (653.1 | ) | (0.1 | ) | (906.5 | ) | |||||||
Other comprehensive loss before reclassifications | (2.4 | ) | (556.1 | ) | (4.6 | ) | (563.1 | ) | |||||||
Net losses reclassified from accumulated other comprehensive loss | 6.7 | — | 2.7 | 9.4 | |||||||||||
Other comprehensive income (loss), net of reclassification adjustments | 4.3 | (556.1 | ) | (1.9 | ) | (553.7 | ) | ||||||||
Accumulated other comprehensive loss, December 31, 2015 | $ | (249.0 | ) | $ | (1,209.2 | ) | $ | (2.0 | ) | $ | (1,460.2 | ) |
Details about Accumulated Other Comprehensive Loss Components | Amount Reclassified from Accumulated Other Comprehensive Loss | Affected Line Item within the Consolidated Statements of Operations | ||||||||
Year ended December 31, 2015 (1) | Year ended December 31, 2014 (1) | |||||||||
Derivatives: | ||||||||||
Net losses on foreign currency contracts | $ | 2.6 | $ | 1.4 | Cost of goods sold | |||||
Net losses on interest rate swap contracts | 0.5 | — | Interest expense, net | |||||||
Reclassification before tax | 3.1 | 1.4 | ||||||||
(0.4 | ) | 0.1 | Income tax provision | |||||||
Reclassification net of tax | $ | 2.7 | $ | 1.5 | ||||||
Defined benefit pension plans: | ||||||||||
Amortization of net actuarial losses | $ | 8.1 | $ | 9.6 | (2) | |||||
Amortization of prior service cost | 0.6 | 1.0 | (2) | |||||||
Reclassification before tax | 8.7 | 10.6 | ||||||||
(2.0 | ) | (2.7 | ) | Income tax provision | ||||||
Reclassification net of tax | $ | 6.7 | $ | 7.9 | ||||||
Net losses reclassified from accumulated other comprehensive loss | $ | 9.4 | $ | 9.4 |
(1) | Losses included within the Consolidated Statements of Operations for the years ended December 31, 2015 and 2014, respectively. |
(2) | These accumulated other comprehensive loss components are included in the computation of net periodic pension and postretirement benefit cost. See Note 8 to the Company’s Consolidated Financial Statements. |
Years Ended December 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Weighted average grant-date fair value | $ | 45.54 | $ | 53.87 | $ | 51.51 |
Shares awarded but not earned at January 1 | 2,481,767 | |
Shares awarded | 861,686 | |
Shares forfeited or unearned | (1,894,057 | ) |
Shares earned | — | |
Shares awarded but not earned at December 31 | 1,449,396 |
Year Ended December 31, 2014 | ||
Shares earned at year-end | 286,804 | |
Shares withheld for taxes on the earned awards | 113,334 | |
Shares issued subsequent to year-end, net | 173,470 |
Shares awarded but not vested at January 1 | — | |
Shares awarded | 144,398 | |
Shares forfeited | (7,002 | ) |
Shares vested | — | |
Shares awarded but not vested at December 31 | 137,396 |
Years Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Weighted average grant-date fair value | $ | 7.41 | $ | 13.11 | $ | 21.10 | |||||
Weighted average assumptions under Black-Scholes option model: | |||||||||||
Expected life of awards (years) | 3.0 | 3.0 | 5.5 | ||||||||
Risk-free interest rate | 0.9 | % | 0.9 | % | 0.9 | % | |||||
Expected volatility | 25.9 | % | 35.7 | % | 50.3 | % | |||||
Expected dividend yield | 1.1 | % | 0.8 | % | 0.8 | % |
SSARs outstanding at January 1 | 1,220,824 | ||
SSARs granted | 325,200 | ||
SSARs exercised | (75,850 | ) | |
SSARs canceled or forfeited | (150,263 | ) | |
SSARs outstanding at December 31 | 1,319,911 | ||
SSAR price ranges per share: | |||
Granted | $ | 43.88 | |
Exercised | 21.45 - 52.94 | ||
Canceled or forfeited | 43.88 - 56.98 | ||
Weighted average SSAR exercise prices per share: | |||
Granted | $ | 43.88 | |
Exercised | 27.01 | ||
Canceled or forfeited | 54.75 | ||
Outstanding at December 31 | 49.56 |
SSARs Outstanding | SSARs Exercisable | |||||||||||||||
Range of Exercise Prices | Number of Shares | Weighted Average Remaining Contractual Life (Years) | Weighted Average Exercise Price | Exercisable as of December 31, 2015 | Weighted Average Exercise Price | |||||||||||
$32.01 - $43.88 | 429,025 | 4.8 | $ | 41.25 | 112,650 | $ | 33.86 | |||||||||
$47.89 - $63.64 | 890,886 | 3.9 | $ | 53.56 | 497,490 | $ | 53.09 | |||||||||
1,319,911 | 610,140 | $ | 49.54 |
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 | (2.1 | ) | (0.7 | ) | (1.4 | ) | ||||||
Net losses reclassified from accumulated other comprehensive loss into income | 0.7 | 0.2 | 0.5 | |||||||||
Accumulated derivative net losses as of December 31, 2013 | (0.3 | ) | (0.1 | ) | (0.2 | ) | ||||||
Net changes in fair value of derivatives | (1.3 | ) | 0.1 | (1.4 | ) | |||||||
Net losses reclassified from accumulated other comprehensive loss into income | 1.4 | (0.1 | ) | 1.5 | ||||||||
Accumulated derivative net losses as of December 31, 2014 | (0.2 | ) | (0.1 | ) | (0.1 | ) | ||||||
Net changes in fair value of derivatives | (6.2 | ) | (1.6 | ) | (4.6 | ) | ||||||
Net losses reclassified from accumulated other comprehensive loss into income | 3.1 | 0.4 | 2.7 | |||||||||
Accumulated derivative net losses as of December 31, 2015 | $ | (3.3 | ) | $ | (1.3 | ) | $ | (2.0 | ) |
Asset Derivatives as of December 31, 2015 | Liability Derivatives as of December 31, 2015 | ||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||
Derivative instruments designated as hedging instruments: | |||||||||||
Interest rate swap contracts | Other noncurrent assets | $ | — | Other noncurrent liabilities | $ | 5.9 | |||||
Derivative instruments not designated as hedging instruments: | |||||||||||
Foreign currency contracts | Other current assets | 4.8 | Other current liabilities | 7.9 | |||||||
Total derivative instruments | $ | 4.8 | $ | 13.8 |
Asset Derivatives as of December 31, 2014 | Liability Derivatives as of December 31, 2014 | ||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||
Derivative instruments designated as hedging instruments: | |||||||||||
Foreign currency contracts | Other current assets | $ | — | Other current liabilities | $ | 0.2 | |||||
Derivative instruments not designated as hedging instruments: | |||||||||||
Foreign currency contracts | Other current assets | 11.3 | Other current liabilities | 20.3 | |||||||
Total derivative instruments | $ | 11.3 | $ | 20.5 |
Payments Due By Period | |||||||||||||||||||||||||||
2016 | 2017 | 2018 | 2019 | 2020 | Thereafter | Total | |||||||||||||||||||||
Interest payments related to indebtedness(1) | $ | 52.2 | $ | 20.2 | $ | 17.4 | $ | 15.6 | $ | 13.4 | $ | 9.9 | $ | 128.7 | |||||||||||||
Capital lease obligations | 2.1 | 0.9 | 0.4 | — | — | — | 3.4 | ||||||||||||||||||||
Operating lease obligations | 50.2 | 33.5 | 24.9 | 12.6 | 10.1 | 43.0 | 174.3 | ||||||||||||||||||||
Unconditional purchase obligations(2) | 71.1 | 10.5 | 6.0 | 0.1 | — | — | 87.7 | ||||||||||||||||||||
Other short-term and long-term obligations(3) | 95.4 | 37.1 | 45.9 | 40.8 | 40.7 | 109.7 | 369.6 | ||||||||||||||||||||
Total contractual cash obligations | $ | 271.0 | $ | 102.2 | $ | 94.6 | $ | 69.1 | $ | 64.2 | $ | 162.6 | $ | 763.7 |
(1) | Estimated interest payments are calculated assuming current interest rates over minimum maturity periods specified in debt agreements. Debt may be repaid sooner or later than such minimum maturity periods (unaudited). |
(2) | Unconditional purchase obligations exclude routine purchase orders entered into in the normal course of business. |
(3) | Other short-term and long-term obligations include estimates of future minimum contribution requirements under the Company’s U.S. and non-U.S. defined benefit pension and postretirement plans. These estimates are based on current legislation in the countries the Company operates within and are subject to change. Other short-term and long-term obligations also include income tax liabilities related to uncertain income tax positions connected with ongoing income tax audits in various jurisdictions (unaudited). |
Amount of Commitment Expiration Per Period | |||||||||||||||||||||||||||
2016 | 2017 | 2018 | 2019 | 2020 | Thereafter | Total | |||||||||||||||||||||
Guarantees | $ | 63.2 | $ | 2.7 | $ | 1.6 | $ | 0.7 | $ | 0.1 | $ | — | $ | 68.3 |
As of December 31, 2015 | ||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||
Derivative assets | $ | — | $ | 4.8 | $ | — | $ | 4.8 | ||||
Derivative liabilities | $ | — | $ | 13.8 | $ | — | $ | 13.8 | ||||
Long-term debt | $ | — | $ | 297.4 | $ | — | $ | 297.4 | ||||
Trading securities | $ | — | $ | 6.6 | $ | — | $ | 6.6 |
As of December 31, 2014 | ||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||
Derivative assets | $ | — | $ | 11.3 | $ | — | $ | 11.3 | ||||
Derivative liabilities | $ | — | $ | 20.5 | $ | — | $ | 20.5 |
Years Ended December 31, | North America | South America | Europe/Africa/ Middle East | Asia/Pacific | Consolidated | |||||||||||||||
2015 | ||||||||||||||||||||
Net sales | $ | 1,965.0 | $ | 949.0 | $ | 4,151.3 | $ | 402.0 | $ | 7,467.3 | ||||||||||
Income (loss) from operations | 123.4 | 34.4 | 416.7 | (27.6 | ) | 546.9 | ||||||||||||||
Depreciation | 62.7 | 20.9 | 122.4 | 11.4 | 217.4 | |||||||||||||||
Assets | 943.7 | 490.0 | 1,757.2 | 346.3 | 3,537.2 | |||||||||||||||
Capital expenditures | 48.6 | 28.6 | 100.8 | 33.4 | 211.4 | |||||||||||||||
2014 | ||||||||||||||||||||
Net sales | $ | 2,414.2 | $ | 1,663.4 | $ | 5,158.5 | $ | 487.6 | $ | 9,723.7 | ||||||||||
Income (loss) from operations | 219.2 | 134.0 | 500.2 | (11.5 | ) | 841.9 | ||||||||||||||
Depreciation | 60.1 | 26.5 | 138.7 | 14.1 | 239.4 | |||||||||||||||
Assets | 1,026.9 | 719.8 | 2,036.0 | 353.8 | 4,136.5 | |||||||||||||||
Capital expenditures | 70.9 | 45.6 | 136.3 | 48.7 | 301.5 | |||||||||||||||
2013 | ||||||||||||||||||||
Net sales | $ | 2,757.8 | $ | 2,039.7 | $ | 5,481.5 | $ | 507.9 | $ | 10,786.9 | ||||||||||
Income from operations | 325.9 | 212.7 | 558.2 | 0.5 | 1,097.3 | |||||||||||||||
Depreciation | 51.4 | 24.6 | 126.6 | 9.0 | 211.6 | |||||||||||||||
Assets | 1,002.8 | 773.5 | 2,368.9 | 289.5 | 4,434.7 | |||||||||||||||
Capital expenditures | 73.4 | 66.4 | 204.5 | 47.5 | 391.8 |
2015 | 2014 | 2013 | |||||||||
Segment income from operations | $ | 546.9 | $ | 841.9 | $ | 1,097.3 | |||||
Corporate expenses | (109.2 | ) | (117.7 | ) | (116.2 | ) | |||||
Stock compensation (expense) credit | (11.6 | ) | 9.7 | (32.6 | ) | ||||||
Restructuring and other infrequent expenses | (22.3 | ) | (46.4 | ) | — | ||||||
Amortization of intangibles | (42.7 | ) | (41.0 | ) | (47.8 | ) | |||||
Consolidated income from operations | $ | 361.1 | $ | 646.5 | $ | 900.7 | |||||
Segment assets | $ | 3,537.2 | $ | 4,136.5 | $ | 4,434.7 | |||||
Cash and cash equivalents | 426.7 | 363.7 | 1,047.2 | ||||||||
Receivables from affiliates | 70.1 | 108.4 | 124.3 | ||||||||
Investments in affiliates | 392.9 | 424.1 | 416.1 | ||||||||
Deferred tax assets, other current and noncurrent assets | 452.2 | 589.5 | 629.2 | ||||||||
Intangible assets, net | 507.7 | 553.8 | 565.6 | ||||||||
Goodwill | 1,114.5 | 1,192.8 | 1,178.7 | ||||||||
Consolidated total assets | $ | 6,501.3 | $ | 7,368.8 | $ | 8,395.8 |
2015 | 2014 | 2013 | |||||||||
Net sales: | |||||||||||
United States | $ | 1,624.0 | $ | 1,985.4 | $ | 2,216.5 | |||||
Canada | 233.6 | 333.9 | 419.4 | ||||||||
Germany | 913.2 | 1,240.0 | 1,301.0 | ||||||||
France | 762.6 | 828.4 | 1,136.8 | ||||||||
United Kingdom and Ireland | 414.5 | 490.8 | 471.8 | ||||||||
Finland and Scandinavia | 637.0 | 808.4 | 828.5 | ||||||||
Other Europe | 1,077.7 | 1,376.0 | 1,422.6 | ||||||||
South America | 932.3 | 1,646.2 | 2,018.5 | ||||||||
Middle East and Africa | 346.4 | 414.9 | 320.7 | ||||||||
Asia | 201.0 | 253.6 | 293.1 | ||||||||
Australia and New Zealand | 201.1 | 234.1 | 214.8 | ||||||||
Mexico, Central America and Caribbean | 123.9 | 112.0 | 143.2 | ||||||||
$ | 7,467.3 | $ | 9,723.7 | $ | 10,786.9 |
2015 | 2014 | 2013 | |||||||||
Net sales: | |||||||||||
Tractors | $ | 4,244.1 | $ | 5,566.8 | $ | 6,491.1 | |||||
Replacement parts | 1,204.4 | 1,390.1 | 1,349.1 | ||||||||
Other machinery | 629.6 | 875.3 | 1,001.0 | ||||||||
Grain storage and protein production systems | 766.2 | 851.0 | 771.9 | ||||||||
Combines | 331.9 | 581.0 | 652.8 | ||||||||
Application equipment | 291.1 | 459.5 | 521.0 | ||||||||
$ | 7,467.3 | $ | 9,723.7 | $ | 10,786.9 |
2015 | 2014 | ||||||
United States | $ | 619.0 | $ | 666.7 | |||
Finland | 165.2 | 192.5 | |||||
Germany | 369.2 | 420.8 | |||||
Brazil | 143.6 | 204.1 | |||||
Italy | 88.3 | 101.8 | |||||
China | 150.0 | 138.7 | |||||
France | 68.3 | 83.2 | |||||
Other | 165.9 | 187.4 | |||||
$ | 1,769.5 | $ | 1,995.2 |
(a) | Securities Authorized for Issuance Under Equity Compensation Plans |
(a) | (b) | (c) | ||||||||
Plan Category | Number of Securities to be Issued upon Exercise of Outstanding Awards Under the Plans | Weighted-Average Exercise Price of Outstanding Awards Under the Plans | Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column (a) | |||||||
Equity compensation plans approved by security holders | 2,906,703 | $ | 48.77 | 4,311,886 | ||||||
Equity compensation plans not approved by security holders | — | — | — | |||||||
Total | 2,906,703 | $ | 48.77 | 4,311,886 |
(b) | Security Ownership of Certain Beneficial Owners and Management |
Schedule | Description | |
Schedule II | Valuation and Qualifying Accounts |
Exhibit Number | Description of Exhibit | The Filings Referenced for Incorporation by Reference are AGCO Corporation | ||
3.1 | Certificate of Incorporation | June 30, 2002, Form 10-Q, Exhibit 3.1 | ||
3.2 | By-Laws | December 10, 2014, Form 8-K, Exhibit 3.1 | ||
4.1 | Indenture dated as of December 5, 2011 | December 6, 2011, Form 8-K, Exhibit 4.1 | ||
10.1 | 2006 Long-Term Incentive Plan* | January 22, 2015, Form 8-K, Exhibit 10.1 | ||
10.2 | Form of Non-Qualified Stock Option Award Agreement* | March 31, 2006, Form 10-Q, Exhibit 10.2 | ||
10.3 | Form of Incentive Stock Option Award Agreement* | March 31, 2006, Form 10-Q, Exhibit 10.3 | ||
10.4 | Form of Stock Appreciation Rights Agreement* | March 31, 2006, Form 10-Q, Exhibit 10.4 | ||
10.5 | Form of Restricted Stock Units Agreement* | January 26, 2016, Form 8-K, Exhibit 10.1 | ||
10.6 | Form of Performance Share Award* | March 31, 2006, Form 10-Q, Exhibit 10.6 | ||
10.7 | Amended and Restated Management Incentive Plan* | March 25, 2013, Form DEF14A, Appendix A | ||
10.8 | Amended and Restated Executive Nonqualified Pension Plan* | October 2, 2015, Form 8-K, Exhibit 99.1 | ||
10.9 | Executive Nonqualified Defined Contribution Plan* | Filed herewith | ||
10.10 | Employment and Severance Agreement with Martin Richenhagen* | December 31, 2009, Form 10-K, Exhibit 10.12 | ||
10.11 | Employment and Severance Agreement with Andrew H. Beck* | March 31, 2010, Form 10-Q, Exhibit 10.2 | ||
10.12 | Employment and Severance Agreement with Gary L. Collar* | June 30, 2008, Form 10-Q, Exhibit 10.6 | ||
10.13 | Employment and Severance Agreement with Rob Smith* | Filed herewith | ||
10.14 | Employment and Severance Agreement with Hans-Bernd Veltmaat* | December 31, 2009, Form 10-K, Exhibit 10.17 |
Exhibit Number | Description of Exhibit | The Filings Referenced for Incorporation by References are AGCO Corporation | ||
10.15 | Credit Agreement dated as of May 2, 2011 | June 30, 2011, Form 10-Q, Exhibit 10.1 | ||
10.16 | Debt Agreement dated December 18, 2014 | December 31, 2014, Form 10-K, Exhibit 10.15 | ||
10.17 | Amended and Restated Credit Agreement dated as of June 30, 2014 | June 30, 2014, Form 10-Q, Exhibit 10.1; June 30, 2015, Form 10-Q, Exhibit 10.1 | ||
10.18 | U.S. Receivables Purchase Agreement, dated December 22, 2009 | December 23, 2009, Form 8-K, Exhibit 10.1; June 30, 2013, Form 10-Q, Exhibit 10.1 | ||
10.19 | Amendment No. 2 to U.S. Receivables Purchase Agreement, dated February 16, 2016 | Filed herewith | ||
10.20 | Canadian Receivables Purchase Agreement, dated December 22, 2009 | December 23, 2009, Form 8-K, Exhibit 10.2; June 30, 2013, Form 10-Q, Exhibit 10.2 | ||
10.21 | European Receivables Transfer Agreement, dated October 13, 2006 | September 30, 2006, Form 10-Q, Exhibit 10.1; December 31, 2009, Form 10-K, Exhibit 10.21; June 30, 2010, Form 10-Q, Exhibit 10.1 | ||
10.22 | French Receivables Purchase Agreement, dated February 19, 2010 | December 31, 2009, Form 10-K, Exhibit 10.22 | ||
10.23 | Letter Agreement, dated November 5, 2015, between AGCO International GmbH and TAFE International LLC, Turkey and Tractors and Farm Equipment Limited | September 30, 2015, Form 10-Q, Exhibit 10.1 | ||
10.24 | Letter Agreement, dated August 29, 2014, between AGCO Corporation and Tractors and Farm Equipment Limited | September 4, 2014, Form 8-K, Exhibit 10.1 | ||
10.25 | Farm and Machinery Distributor Agreement, dated January 1, 2012, between AGCO International GmbH and Tractors and Farm Equipment Limited | September 4, 2014, Form 8-K, Exhibit 10.2 | ||
10.26 | Letter Agreement, dated August 3, 2007, between AGCO Corporation and Tractors and Farm Equipment Limited | September 4, 2014, Form 8-K, Exhibit 10.3 | ||
10.27 | Consultancy Agreement, dated December 8, 2014, between AGCO Do Brasil Comércio E Industria Ltda and André Carioba | December 10, 2014, Form 8-K, Exhibit 10.1 | ||
10.28 | Current Director Compensation | Filed herewith | ||
21.1 | Subsidiaries of the Registrant | Filed herewith | ||
23.1 | Consent of KPMG LLP | Filed herewith | ||
24.1 | Powers of Attorney | 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 | Filed 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 |
AGCO Corporation | |||
By: | /s/ MARTIN RICHENHAGEN | ||
Martin Richenhagen | |||
Chairman of the Board, President and Chief Executive Officer | |||
Dated: | February 26, 2016 |
Signature | Title | Date | |||
/s/ MARTIN RICHENHAGEN | Chairman of the Board, President and Chief Executive Officer | February 26, 2016 | |||
Martin Richenhagen | |||||
/s/ ANDREW H. BECK | Senior Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) | February 26, 2016 | |||
Andrew H. Beck | |||||
/s/ ROY V. ARMES * | Director | February 26, 2016 | |||
Roy V. Armes | |||||
/s/ MICHAEL C. ARNOLD * | Director | February 26, 2016 | |||
Michael C. Arnold | |||||
/s/ P. GEORGE BENSON * | Director | February 26, 2016 | |||
P. George Benson | |||||
/s/ WOLFGANG DEML * | Director | February 26, 2016 | |||
Wolfgang Deml | |||||
/s/ LUIZ F. FURLAN * | Director | February 26, 2016 | |||
Luiz F. Furlan | |||||
/s/ GEORGE E. MINNICH * | Director | February 26, 2016 | |||
George E. Minnich | |||||
/s/ GERALD L. SHAHEEN * | Director | February 26, 2016 | |||
Gerald L. Shaheen | |||||
/s/ MALLIKA SRINIVASAN * | Director | February 26, 2016 | |||
Mallika Srinivasan | |||||
/s/ HENDRIKUS VISSER * | Director | February 26, 2016 | |||
Hendrikus Visser | |||||
*By: | /s/ ANDREW H. BECK | February 26, 2016 | |||
Andrew H. Beck | |||||
Attorney-in-Fact |
Additions | ||||||||||||||||||||||||
Description | Balance at Beginning of Period | Acquired Businesses | Charged to Costs and Expenses | Deductions | Foreign Currency Translation | Balance at End of Period (1) | ||||||||||||||||||
Year ended December 31, 2015 | ||||||||||||||||||||||||
Allowances for sales incentive discounts | $ | 255.0 | $ | — | $ | 195.1 | $ | (196.1 | ) | $ | — | $ | 254.0 | |||||||||||
Year ended December 31, 2014 | ||||||||||||||||||||||||
Allowances for sales incentive discounts | $ | 236.6 | $ | — | $ | 300.7 | $ | (282.3 | ) | $ | — | $ | 255.0 | |||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||||||
Allowances for sales incentive discounts | $ | 165.2 | $ | — | $ | 374.6 | $ | (303.2 | ) | $ | — | $ | 236.6 |
Additions | ||||||||||||||||||||||||
Description | Balance at Beginning of Period | Acquired Businesses | Charged to Costs and Expenses | Deductions | Foreign Currency Translation | Balance at End of Period | ||||||||||||||||||
Year ended December 31, 2015 | ||||||||||||||||||||||||
Allowances for doubtful accounts | $ | 32.1 | $ | — | $ | 5.6 | $ | (3.0 | ) | $ | (5.4 | ) | $ | 29.3 | ||||||||||
Year ended December 31, 2014 | ||||||||||||||||||||||||
Allowances for doubtful accounts | $ | 34.9 | $ | 0.5 | $ | 1.7 | $ | (1.2 | ) | $ | (3.8 | ) | $ | 32.1 | ||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||||||
Allowances for doubtful accounts | $ | 38.1 | $ | — | $ | 3.2 | $ | (5.0 | ) | $ | (1.4 | ) | $ | 34.9 |
Additions | ||||||||||||||||||||||||
Description | Balance at Beginning of Period | Charged to Costs and Expenses | Reversal of Accrual | Deductions | Foreign Currency Translation | Balance at End of Period | ||||||||||||||||||
Year ended December 31, 2015 | ||||||||||||||||||||||||
Accruals of severance, relocation and other integration costs | $ | 25.4 | $ | 23.0 | $ | (0.7 | ) | $ | (29.5 | ) | $ | (1.3 | ) | $ | 16.9 | |||||||||
Year ended December 31, 2014 | ||||||||||||||||||||||||
Accruals of severance, relocation and other integration costs | $ | — | $ | 44.4 | $ | — | $ | (18.8 | ) | $ | (0.2 | ) | $ | 25.4 |
Additions | ||||||||||||||||||||||||
Description | Balance at Beginning of Period | Acquired Businesses | Charged (Credited) to Costs and Expenses | Deductions | Foreign Currency Translation | Balance at End of Period | ||||||||||||||||||
Year ended December 31, 2015 | ||||||||||||||||||||||||
Deferred tax valuation allowance | $ | 93.3 | $ | — | $ | (4.5 | ) | $ | — | $ | (13.0 | ) | $ | 75.8 | ||||||||||
Year ended December 31, 2014 | ||||||||||||||||||||||||
Deferred tax valuation allowance | $ | 77.2 | $ | — | $ | 22.8 | $ | — | $ | (6.7 | ) | $ | 93.3 | |||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||||||
Deferred tax valuation allowance | $ | 74.5 | $ | — | $ | 9.3 | $ | (2.8 | ) | $ | (3.8 | ) | $ | 77.2 |
(1) | As of December 31, 2015, approximately $229.5 million of this balance was recorded within “Accrued expenses” and approximately $24.5 million was recorded within “accounts receivable allowances” in the Company’s Consolidated Balance Sheets. As of December 31, 2014, approximately $236.5 million of this balance was recorded within “Accrued expenses” and approximately $18.5 million was recorded within “accounts receivable allowances” in the Company’s Consolidated Balance Sheets. |
(a) | Authority. The Plan Administrative Committee shall have full authority and power to administer and construe the Plan, subject to applicable requirements of law. Without limiting the generality of the foregoing, the Plan Administrative Committee shall have the following powers and duties: |
(i) | To make and enforce such rules and regulations as it deems necessary or proper for the administration of the Plan; |
(ii) | To interpret the Plan and to decide all questions concerning the Plan; |
(iii) | To designate persons eligible to participate in the Plan; |
(iv) | To determine the amount and the recipient of any payments to be made under the Plan; |
(v) | To designate and value any investments deemed held in Plan Accounts; |
(vi) | To vest all or any portion of a Participant’s Account, to the extent not vested previously; |
(vii) | To appoint such agents, counsel, accountants, consultants and other persons as may be required to assist in administering the Plan; and |
(viii) | To make all other determinations and to take all other steps necessary or advisable for the administration of the Plan. |
(b) | Authority of Board of Directors. Notwithstanding anything in this Plan to the contrary, the Board at all times shall have the power to make determinations with respect to the Plan as it shall elect to make. |
(c) | Delegation of Duties. The Plan Administrative Committee may delegate such of its duties and may engage such experts and other persons as it deems appropriate in connection with administering the Plan. The Plan Administrative Committee shall be entitled to rely conclusively upon, and shall be fully protected in any action taken by the Plan Administrative Committee, in good faith in reliance upon any opinions or reports furnished to it by any such experts or other persons. |
(d) | Expenses. All expenses incurred in connection with the administration of the Plan, including, without limitation, administrative expenses and compensation and other expenses and charges of any actuary, counsel, accountant, specialist, or other person who shall be employed by the Plan Administrative Committee in connection with the administration of the Plan, shall be paid by the Participating Employers. |
(e) | Indemnification of Plan Administrative Committee. The Participating Employers agree to indemnify and to defend to the fullest extent permitted by law any person serving as a member of the Plan Administrative Committee, and each employee of a Participating Employer or any of their affiliated companies appointed by the Plan Administrative Committee to carry out duties under this Plan, against all liabilities, damages, costs and expenses (including attorneys’ fees and amounts paid in settlement of any claims approved by the Company) occasioned by any act or omission to act in connection with the Plan, so long as such act or omission is in good faith. The foregoing shall in no way limit the right of any member of the Plan Administrative Committee or employee to indemnification or reimbursement or the right to have, or receive payments from, insurance beyond that provided by the Plan. |
(f) | Liability. To the extent permitted by law, neither the Plan Administrative Committee nor any other person shall incur any liability for any acts or for any failure to act except for liability arising out of such person’s own willful misconduct or gross negligence. |
(a) | The date that any one person, or more than one person acting as a group, acquires (including through the formation of a group) ownership of stock of the Company that, together with stock held by such person or group, constitutes more than fifty percent (50%) of the total fair market value or total voting power of the stock of the Company (not including where any one person, or more than one person acting as a group, who is considered to own more than fifty percent (50%) of the total fair market value or total voting power of the stock of the Company, acquires additional stock). |
(b) | The date that any one person, or more than one person acting as a group, acquires (or has acquired during the twelve (12)-month period ending on the date of the most recent acquisition by such person or persons) ownership of stock of the Company possessing thirty percent (30%) or more of the total voting power of the stock of the Company, or a majority of the members of the Board is replaced during any twelve (12)-month period by directors whose appointment or election is not endorsed by a majority of the members of the Board (who are not affiliated with such replacement directors) prior to the date of the appointment or election of such new directors. |
(c) | The date that any one person, or more than one person acting as a group, acquires (or has acquired during the twelve (12)-month period ending on the date of the most recent acquisition by such person or persons) assets from the Company that have a total fair market value equal to or more than forty-percent (40%) of the total fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions unless the assets are transferred to (i) a stockholder of the Company (immediately before the asset transfer) in exchange for or with respect solely to its stock, (ii) an entity, fifty percent (50%) or more of the total value or voting power of which is owned, directly or indirectly by the Company, (iii) a person, or more than one person acting as a group, that owns, directly or indirectly, fifty percent (50%) or more of the total value or voting power of all of the outstanding stock of the Company, or (iv) an entity, at least fifty percent (50%) of the total value or voting power of which is owned, directly or indirectly, by a person, or more than one person acting as a group, that owns directly or indirectly, fifty percent (50%) or more of the total value or voting power of all of the outstanding stock of the Company. |
(a) | who is (i) employed by the Company or an Affiliate organized under the laws of the United States of America and working in the United States of America or (ii) employed by an Affiliate organized under the laws of a jurisdiction outside the United States of America but working in the United States of America on a global assignment and no longer participating in the person’s home country Company or Affiliate-sponsored retirement plan; and |
(b) | whose position is at the Vice President, Senior Vice President or higher level; but excluding |
(c) | any employee who is or was a Participant in the AGCO Corporation Executive Nonqualified Pension Plan as first effective in 2000 and as subsequently amended. |
(a) | For this purpose, the employment relationship is treated as continuing intact while the individual is on military leave, sick leave, or other bona fide leave of absence (such as temporary employment by the government) if the period of such leave does not exceed six (6) months, or, if longer, so long as the individual’s right to reemployment with the Company and its Affiliates is provided either by statute or by contract. If the period of leave exceeds six (6) months and the individual’s right to reemployment is not provided either by statute or by contract, the employment relationship is deemed to terminate on the first date immediately following such six (6)-month period. |
(b) | The determination of whether a Participant has separated from service shall be determined based on the facts and circumstances in accordance with the rules set forth in Code Section 409A and the regulations thereunder. |
(a) | The Participant is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months. |
(b) | The Participant is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan covering employees of a Participating Employer. |
(c) | The Participant is determined to be totally disabled by the Social Security Administration. |
(d) | The Participant is determined to be totally disabled under any disability program covering employees of the Participating Employer (including the Participant), provided the definition of total disability under such program complies with any of the definitions under (a), (b) or (c) above. |
(a) | An Eligible Executive shall become a Participant in the Plan as of the date designated by the Plan Administrative Committee. |
(b) | An Eligible Executive shall only be a Participant under this Plan while he or she is employed by a Participating Employer and qualifies as an Eligible Executive. If an employee subsequently ceases to be an Eligible Executive after becoming a Participant, he or she shall remain a Participant under the Plan only to the extent of any existing Account balance but shall receive no further Employer Contributions. By way of example and not of limitation, if an Eligible Executive terminates employment with the Company and its Affiliates but continues to provide services as a consultant or other independent contractor, that individual is no longer an Eligible Executive and will remain a Participant only to the extent of any existing Account balance but shall receive no further Employer Contributions. Under the foregoing circumstances, however, payment of the Participant’s Account may only commence on a Separation from Service. If such individual again becomes an Eligible Executive, he or she will only again become a Participant as of the date designated by the Plan Administrative Committee. |
(c) | An Eligible Executive who incurs a Separation from Service but is subsequently re-hired will only become a Participant upon re-hire if again designated by the Plan Administrative Committee. Notwithstanding the foregoing, the payment of the Participant’s Account will continue as set forth herein upon a Separation from Service even if the Participant is re-hired and again commences participation in the Plan. |
(d) | Notwithstanding the foregoing, the Plan Administrative Committee may remove a Participant from participation in the Plan on a prospective basis, such that no further Employer Contributions will be credited to the Participant’s Account, and the Participant shall remain a Participant under the Plan only to the extent of any existing Account balance. |
(a) | No Participant may contribute or defer any amounts to the Plan. |
(b) | Except as set forth below, for each Plan Year, the Participating Employer shall credit to the Account of each Participant employed by that Participating Employer with an Employer Contribution, no later than thirty (30) days after the end of the Plan Year, in the following amounts: |
(i) | for Participants at the Vice President level, the amount equal to (A) eight percent (8%) (or such greater percentage as the Plan Administrative Committee may designate) of the Participant’s Plan Compensation for the Plan Year or, if the Participant was not a Participant for the full Plan Year, the portion thereof in which the Participant was a Participant in the Plan, minus (B) the Participant’s Savings Plan Benefit for the Plan Year; and |
(ii) | for Participants at the Senior Vice President level or greater, the amount equal to (A) ten percent (10%) (or such greater percentage as the Plan Administrative Committee may designate) of the Participant’s Plan Compensation for the Plan Year or, if the Participant was not a Participant for the full Plan Year, the portion thereof in which the Participant was a Participant in the Plan, minus (B) the Participant’s Savings Plan Benefit for the Plan Year. |
(c) | Notwithstanding the foregoing, the Plan Administrative Committee may elect to not make an Employer Contribution to a Participant’s Account for the applicable Plan Year or may reduce the amount of such Employer Contribution for the applicable Plan Year, provided the Plan Administrative Committee exercises such discretion, prior to the beginning of the applicable Plan Year, with respect to all of the Participants within the class of Eligible Executives to which the Plan Administrative Committee intends to exercise such discretion and then notifies the Participants no later than thirty (30) days thereafter that no such Employer Contributions, or a reduced level of Employer Contributions, will be made for the applicable Plan Year. |
(d) | The Plan Administrative Committee also may elect to credit a Participant’s Account with additional Employer Contributions, as the Plan Administrative Committee may elect, and such additional Employer Contributions need not be made to other Participants. No Participant shall have any right to receive any additional Employer Contributions under this Section 4.1(d). |
(e) | The Participant’s Employer Contribution will be credited to the Participant’s Account as of the last Valuation Date of the Plan Year to which the Employer Contribution relates. |
(a) | Except as otherwise provided in Section 4.2(b) below or otherwise specified by the Participating Employer at the time of credit to the Account of the Participant, the Employer Contributions credited to a Participant’s Account shall be vested in full on and after the time the Participant has been a Participant in the Plan and eligible to be credited Employer Contributions from the first day of Participant’s participation in the Plan through the fifth (5th) anniversary of such date. |
(b) | Notwithstanding the foregoing vesting schedule: |
(i) | the Participating Employer may specify a different vesting schedule for an Employer Contribution for any particular Plan Year than described above or provide that the Employer Contribution for any particular Plan Year is fully vested at the time credited to the Account of the Participant; and |
(ii) | the balance credited to a Participant’s Account shall become fully vested if the Participant remains continuously employed by a Participating Employer and a Participant in the Plan eligible to be credited Employer Contributions, until his or her death, Total Disability, or the occurrence of a Change in Control. |
(a) | Time and/or Form of Payment. Except as otherwise set forth below, payment of a Participant’s vested Account(s) will be made in a single lump sum on the first day of the seventh (7th) calendar month following the Participant’s Separation from Service. |
(b) | Amount of Payment. The amount of the lump sum payment will be equal to the value of Participant’s vested Account(s) as of the Valuation Date immediately preceding the date of payment. |
(a) | In the event that a Participant Separates from Service by reason of his or her death, or dies after his or her Separation from Service and prior to receiving payment of his or her Account(s), the balance credited to his or her vested Account(s) will be distributed to the Participant’s designated beneficiary at the time and in the form set forth above. |
(a) | The Participant may name a beneficiary or beneficiaries to receive the balance of the Participant’s Account in the event of the Participant’s death prior to the payment of the Participant’s Account. To be effective, any beneficiary designation must be filed in writing with the Plan Administrative Committee in accordance with rules and procedures adopted by the Plan Administrative Committee for that purpose. |
(b) | A Participant may revoke an existing beneficiary designation by filing another written beneficiary designation with the Plan Administrative Committee. The latest beneficiary designation received by the Plan Administrative Committee shall be controlling; provided, however, that no designation, or change or revocation thereof, shall be effective unless received by the Plan Administrative Committee prior to the Participant’s death. |
(c) | If no beneficiary is named by a Participant, or if the Participant survives all of the Participant’s named beneficiaries and does not designate another beneficiary, the Participant’s Account shall be paid in the following order of precedence: |
(a) | the Participant’s employment with the Participating Employer has been terminated for Cause; or |
(b) | if at any time prior to payment, the Participant has breached any of his or her post-employment obligations, including, but not limited to, any restrictive covenants or obligations under any agreement and general release, |
(a) | Initial Disability Claim Review. If a Participant applies for a benefit under the Plan based on a Total Disability, and in the event a claim for benefits is wholly or partially denied by the Plan Administrative Committee, the Plan Administrative Committee shall, within a reasonable period of time, but no later than forty-five (45) days after receipt of the claim, notify the claimant in writing of the denial of the claim. This forty-five (45) day period may be extended up to thirty (30) days if such an extension is necessary due to matters beyond the control of the Plan, and the claimant is notified, prior to the expiration of the initial forty-five (45) day period, of the circumstances requiring the extension of time and the date by which the Plan Administrative Committee expects to render a decision. If, prior to the end of the first thirty (30) day extension period, the Plan Administrative Committee determines that, due to matters beyond the control of the Plan, a decision cannot be rendered within that extension period, the period for making the determination may be extended for up to an additional thirty (30) days, provided that the Plan Administrative Committee notifies the claimant, prior to the expiration of the first thirty (30) days extension period, of the circumstances requiring the extension and the date as of which the Plan Administrative Committee expects to render a decision. In the case of any extension, the notice of extension also shall specifically explain the standards on which entitlement to a benefit upon Total Disability is based, the unresolved issues that prevent a decision on the claim, and the additional information needed to resolve those issues, and the claimant shall be afforded at least forty-five (45) days within which to provide the specified information, if any. |
(b) | Denial of Disability Claim. If the Plan Administrative Committee denies the claim for a Total Disability benefit in whole or in part, the claimant shall be provided with written notice of the denial stating the specific reason for the denial; reference to the specific Plan provisions on which the denial is based; a description of any additional material or information necessary for the claimant to perfect the claim and an explanation of why such material or information is necessary; and a description of the Plan’s review procedures (as set forth below) and the time limits applicable to such procedures, including the claimant’s right to bring civil action following an adverse benefit determination. If an internal rule, guideline, protocol, or other similar criterion was relied upon in making the adverse determination, either the specific rule, guideline, protocol, or other similar criterion shall be provided to the claimant free of charge, or the claimant |
(c) | Appeal of Denied Disability Claim. If the claim for a Total Disability benefit is denied in full or in part, the claimant shall have the right to appeal the decision by sending a written request for review to the Plan Administrative Committee within one hundred eighty (180) days of his receipt of the claim denial notification. The claimant may submit written comments, documents, records, and other information relating to his or her claim for benefits. Upon request, the claimant shall be provided free of charge and reasonable access to, and copies of, all documents, records and other information relevant to his claim. |
(d) | Review of Appealed Disability Claim. Upon receipt of the claimant’s appeal of the denial of his claim, the Plan Administrative Committee shall conduct a review that takes into account all comments, documents, records, and other information submitted by the claimant or his authorized representative relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination. The review shall not afford deference to the initial benefit determination and shall be conducted by an individual who is neither the individual who made the adverse benefit determination that is the subject of the appeal, nor the subordinate of such individual. The Plan Administrative Committee shall consult a medical professional who has appropriate training and experience in the field of medicine relating to the claimant’s disability and who is neither consulted as part of the initial denial nor is the subordinate to such individual and shall identify the medical or vocational experts whose advice is obtained with respect to the initial benefit denial, without regard to whether the advice was relied upon in making the decisions. If a claim is denied due a medical judgment, the Plan Administrative Committee will consult with a healthcare professional who has appropriate training and experience in the field of medicine involved in the medical judgment. The healthcare professional consulted will not be the same person consulted in connection with the initial benefit decision (nor be the subordinate of that person). The decision on review also will identify any medical or vocational experts who advised the Company’s benefits department in connection with the original benefit decision, even if the advice was not relied upon in making the decision. |
(e) | Timing of Review on Appeal. The Plan Administrative Committee shall notify the claimant of its determination on review within a reasonable period of time, but generally not later than forty-five (45) days after receipt of the request for review, unless the Plan Administrative Committee determines that special circumstances require an extension of time for processing the claim. If the Plan Administrative Committee determines that an extension of time for processing is required, written notice of the extension will be furnished to the claimant prior to the termination of the initial forty-five (45) day period. In no event shall such extension exceed a period of forty-five (45) days from the end of the initial period. The extension notice shall indicate the special circumstances requiring extension of time and the date by which the Plan Administrative Committee expects to render the determination on review. |
(f) | Denial on Appeal. If the Plan Administrative Committee denies the claim on appeal, it shall notify the claimant in a manner to be understood by him of the specific reason or reasons for the adverse determination; reference to the specific Plan provisions on which the adverse determination is based; a statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to his claim; and a statement indicating the claimant’s right to file a lawsuit upon completion of the claims procedure process. If an internal rule, guideline, protocol, or other similar criterion was relied upon in making the adverse determination, either the specific rule, guideline, protocol, or other similar criterion shall be provided free of charge, or the claimant may be informed that such rule, guideline, protocol, or other criterion shall be provided free of charge upon request. |
(a) | Such trust(s) shall be an irrevocable grantor trust containing provisions which are the same as, or are similar to, the provisions contained in the model “rabbi trust” set forth in Internal Revenue Service Revenue Procedure 92-64 (or any successor guidance issued by the IRS). The terms of the trust shall contain such provisions as may be necessary so that the Plan will be considered “unfunded” for purposes of ERISA and the Code. |
(b) | The Participating Employers may make contributions to the trust(s) equal to the amount of the Employer Contributions following the date on which such contributions are credited to Participants’ Accounts. Notwithstanding the foregoing, however, no contributions may be made to any trust during any “restricted period” within the meaning of Section 409A(b)(3) of the Code. |
(c) | The Participating Employers shall pay all costs relating to the establishment and maintenance of the trust(s) and the investment of funds held in such trust(s). |
(d) | The assets and income of such trust shall be subject to the claims of the general creditors of the Participating Employers in the event of bankruptcy or insolvency. The establishment of such a trust shall not affect the Participating Employer’s liability to pay benefits hereunder except that any such liability shall be offset by any payments actually made to a Participant under such a trust. None of the assets of the trust may be restricted to pay benefits under the Plan in connection with any change in the financial health of the Participating Employer or within any time period prohibited by Section 409A(b)(3). |
(e) | In the event such a trust is established, the amount to be contributed thereto shall be determined by the Participating Employer and the investment of such assets shall be made in accordance with the trust document. |
(f) | Participants shall have no direct or secured claim in any asset of the trust or in specific assets of the Participating Employer and will have the status of general unsecured creditors of the Employer for any amounts due under this Plan. |
(g) | All assets of the trust shall be held in the United States unless otherwise permitted under Code Section 409A(b). |
(a) | Acceleration of Payments. The Plan Administrative Committee may, its discretion, accelerate the payment of all or a portion of a Participant’s vested Account prior to the time specified in this Plan to the extent such acceleration is permitted by Treasury Regulation Section 1.409A-3(j)(4). Such permitted accelerations shall include payments to comply with domestic relations orders, payments to comply with conflicts of interest laws, payment of employment taxes, payment upon income inclusion under Code Section 409A, and/or such other circumstances as are permitted by Section 409A and the Treasury Regulations thereunder. |
(b) | Delay of Payments. The Plan Administrative Committee may, in its discretion, delay the payment of all or a portion of a Participant’s Account in such circumstances as may be permitted under Code Section 409A provided the Participant consents to such further delay. |
AGCO CORPORATION | |
(the “Company”) | |
By: | /s/ Roger N. Batkin |
Title: | Vice President and General Counsel |
• | examine, without charge at the Plan Administrator’s office and at other specified locations, such as worksites and union halls, all documents governing the Plan, including collective bargaining agreements, and a copy of the latest Annual Report (Form 5500 series), if any, filed by the Plan with the U.S. Department of Labor and available at the Public Disclosure Room of the Employee Benefits Security Administration (f/k/a the Pension Welfare Benefits Administration). |
• | obtain copies of all documents governing the operation of the Plan including collective bargaining agreements and copies of the latest Annual Report (Form 5500 series), if any, and an updated summary plan description, by making a written request to the Plan Administrator and paying a reasonable charge for the copies. |
• | receive a summary of the Plan’s annual financial report. The Plan Administrator is required by law to furnish each participant under the Plan with a copy of this summary annual report. |
Employment Agreement AGCO International GmbH / Dr. Richard Robinson Smith | 2 / 26 |
A. | AGCO International GmbH is a limited liability company, duly incorporated and existing under the laws of Switzerland (company number: CH-290.4.015.865-8; "Employer"). The Employer is a part of the AGCO-group of companies ("Group"), of which AGCO Corporation ("AGCO"), a Delaware company headquartered in Duluth, Georgia/USA, is the ultimate parent company and listed at the New York Stock Exchange (NYSE: AGCO). |
B. | Dr. Richard Robinson Smith (aka Dr. Rob Smith), a citizen of Germany and the USA, born on 13 June 1965, is an executive with his ordinary residence currently in Germany ("Employee"). |
C. | Since the Employee shall be based in Switzerland, the Employer and the Employee desire to enter into this Swiss law governed employment agreement, to record the terms and conditions for the provision of advice and services by the Employee for and on behalf of the Employer and the Group within Switzerland and in certain countries of the world, upon the terms and conditions set forth herein. |
1. | Conditions of Effectiveness of the Agreement |
1.1 | This Agreement will only become effective and binding upon the Parties, if all of the following conditions precedent (qualifying as "aufschiebende Bedingungen" in the sense of Article 151 et seq. of the Swiss Code of Obligations) are satisfied in full: |
(i) | The Employee obtains a valid residence permit and work permit, if required, for Switzerland allowing him to reside and to start working for Employer in Switzerland; and |
(ii) | the Employee is not or no longer bound by any obligations, legal or otherwise, towards his former employer or employers or other third parties, which would adversely affect the Employee's ability to provide his services under the Agreement. |
1.2 | The Employee, with the support of the Employer as may be required, shall apply for the necessary residence permit and work permit, if required, for the Employee; whereby the Employer does not represent or warrant the receipt or a specific time of receipt, if any, of such permit(s). |
1.3 | To the extent permitted by law, any liability of Employer is expressly excluded in case the conditions in Section 1.1 are not or not timely satisfied. |
2. | Commencement of Employment |
2.1 | Provided that the Agreement becomes effective pursuant to Section 1 hereof, the employment shall commence as soon as possible following 30 April 2013 ("Commencement Date"). |
Employment Agreement AGCO International GmbH / Dr. Richard Robinson Smith | 3 / 26 |
2.2 | Provided that the Agreement becomes effective pursuant to Section 1 hereof and in case the Employee will, for any reason, start to work for Employer only at a date after 02 May 2013, the Commencement Date shall be the first actual day of work of Employee. |
3. | Position, Place of Work |
3.1 | The Employee shall be appointed and employed by the Employer as of the Commencement Date, in the position of Senior Vice President and General Manager EAME and managing officer of Employer ("Geschäftsführer"). The Employee will report to Mr. Martin Richenhagen, Chairman, President and CEO of AGCO, or to those executive officers who are assigned to this position by the Board of Directors of AGCO from time to time. At all times during the term of this Agreement, the Employee shall perform those duties and exercise such powers which are from time to time assigned to or vested in the Employee by the Board of Directors of AGCO or the CEO of AGCO, the executive officer to whom the Employee reports or that are listed in the relevant work description or in internal regulations of the Employer. |
3.2 | During the term of employment the Employee shall, if so requested, and without additional compensation, accept appointment as a member of the board of directors or as a managing officer of the Employer and/or any of its subsidiary, sister, and parent companies and affiliates within the Group. |
3.3 | The Employee's principal place of work shall be at the Employer's offices or such other premises as the Employer may use from time to time. Notwithstanding the principal place of work, the Employee's duties require the Employee to regularly travel on business for the Employer and/or the Group to other locations both in Switzerland and abroad. Such travel may include, when reasonably required, weekends and public holidays without additional compensation or grant of extra time off. |
4. | Remuneration |
4.1 | The base salary shall be CHF 550,000.00 (five hundred fifty thousand Swiss Francs) gross p.a. (pro rata), payable by wire transfer and in Swiss Francs only, in 12 equal monthly installments one month in arrears on or around the last calendar day in the respective month ("Base Salary"). No adjustments to the Base Salary will be made for changes in exchange rates. |
4.2 | The Base Salary shall be the remuneration for regular working time, as is customary given the Employee's high-level management position, overtime ("Überstunden"), excess-overtime ("Überzeit"), and any other time used for service(s) rendered by the Employee for the Employer and/or the Group. |
4.3 | The Employer shall deduct from the Base Salary all social security charges, the pension plan contributions of the Employee pursuant to Section 12 and any other charges and/or taxes due under applicable law. |
Employment Agreement AGCO International GmbH / Dr. Richard Robinson Smith | 4 / 26 |
4.4 | The Employer shall annually consider, for the first time as per 01 April 2014, performance based merit increases in the Base Salary. The performance based merit increase of the Base Salary will be at the sole discretion of the Employer in compliance with the Employer's and/or the Group's corporate governance and compensation guidelines and policies. |
4.5 | For the sake of clarity and subject to the applicable tax laws, the Employee’s remuneration, short and long term incentive compensation ("Gratifikation"), and all other payments received by the Employee as per this Employment Agreement constitute income from Switzerland. |
5. | Incentive Compensation ("Gratifikation") |
5.1 | Short Term Incentive Compensation |
5.1.1 | Provided that the Employee has duly performed and continues to duly perform his obligations pursuant to this Agreement to the satisfaction of the Employer, the Employee shall be entitled to participate in the Employer's or the Group's Management Incentive Plan or similar ("Plan") at a target level of 90% of the Base Salary, subject to the terms and conditions of such Plan as communicated by Employer or any Plan administrator from time to time. The Employee acknowledges and agrees that the Employer or any Plan administrator may unilaterally amend or change the Plan from time to time or discontinue any Plan at any time, subject to the terms and conditions thereof. Any incentive or bonus payment (as a "Gratifikation" pursuant to Article 322d of the Swiss Code of Obligations) under such Plan shall be paid-out at such times as such payments are customarily made by the Employer or any Plan administrator. The Employer shall deduct from any incentive or bonus payment under such Plan the social security charges and any other charges and/or taxes due under applicable law. |
5.1.2 | As an exception to Section 5.1.1 and for the year 2013 only, a pro rata bonus payment as of the Commencement Date ("Gratifikation" pursuant to Article 322d of the Swiss Code of Obligations) at a target level of 90% of the Base Salary p.a. or actual attainment (if such attainment is greater than the target level) pursuant to the Incentive Compensation Plan 2013 is guaranteed to the Employee, provided that the Employee is still employed by the end of 2013 and neither the Employer nor the Employee has given notice before the end of 2013 pursuant to Section 15.1. For the avoidance of doubt and provided that a notice of termination of one Party pursuant to Section 15.1 has been received by the other Party before 01 January 2014, the Parties acknowledge and agree that no payment pursuant to this Section 5.1.2 is owed in case the Severance Payment pursuant to Section 17 should become due. |
Employment Agreement AGCO International GmbH / Dr. Richard Robinson Smith | 5 / 26 |
5.2 | Long Term Incentive Compensation |
5.2.1 | Provided that the Employee has duly performed and continues to duly perform his obligations pursuant to this Agreement to the satisfaction of the Employer and in addition to the Employer's or the Group's Plan as per Section 5.1.1, the Employee shall be entitled to participate in the Employer's or the Group's Long Term Incentive Plan or similar ("Long Term Plan"), subject to the terms and conditions of such Long Term Plan as communicated by Employer or any Long Term Plan administrator from time to time. At present, the Long Term Plan is the AGCO Corporation 2006 Long-Term Incentive Plan (as restated and amended). The Employee acknowledges and agrees that the Employer or any Long Term Plan administrator may unilaterally amend or change the Long Term Plan from time to time or discontinue any Long Term Plan at any time, subject to the terms and conditions thereof. Any incentive or bonus payment (as a "Gratifikation" pursuant to Article 322d of the Swiss Code of Obligations) under such Long Term Plan shall be paid-out at such times as such payments are customarily made by the Employer or any Long Term Plan administrator under the Long Term Plan. The Employer shall deduct from any incentive or bonus payment under such Long Term Plan the social security charges and any other charges and/or taxes due under applicable law. |
5.3 | Pro rata grants under running performance cycles under the Long Term Plan |
5.3.1 | At present, but subject to the right of Employer or any Long Term Plan administrator to unilaterally amend, change or discontinue the Long Term Plan as per Section 5.2.1, the Employee shall receive either determined or determinable pro rata grants under running performance cycles, as outlined in the exhaustive list in Sections 5.3.3 through 5.3.5 hereof, under the different award types currently in place under the Long Term Plan. The current award types under the Long Term Plan are: |
(i) | Performance Shares ("PS") Agreement with a performance period of three years; |
(ii) | Stock Appreciation Rights ("SARs") Agreement with a performance period of four years; |
(iii) | Margin Improvement Performance Share ("MGIP") Agreement with a performance period of approx. five years. |
5.3.2 | The currently running performance cycles for PS and SARs under the Long Term Plan are |
(i) | the plan cycle 2011-2013 ("2011 Cycle"); and |
(ii) | the plan cycle 2012-2014 ("2012 Cycle"); and |
(iii) | the plan cycle 2013-2015 ("2013 Cycle"). |
Employment Agreement AGCO International GmbH / Dr. Richard Robinson Smith | 6 / 26 |
5.3.3 | Subject to Section 5.3.6, the Employee shall receive the following target number of PS, to be pro rated as of the Commencement Date, pursuant to the Performance Shares Agreements in place for other participants under the Long Term Plan: |
(i) | 2011 Cycle: 10,100 PS (ten thousand one hundred PS); plus |
(ii) | 2012 Cycle: 15,700 PS (fifteen thousand seven hundred PS); plus |
(iii) | 2013 Cycle: 15,400 PS (fifteen thousand four hundred PS). |
5.3.4 | Subject to Section 5.3.6, the Employee shall receive the following, determined number of SARs pursuant to the Stock Appreciation Rights Agreements in place for other participants under the Long Term Plan: |
(i) | 2011 Cycle: 2,494 SARs (two thousand four hundred ninety four SARs); plus |
(ii) | 2012 Cycle: 7,733 SARs (seven thousand seven hundred thirty three SARs); plus |
(iii) | 2012 Cycle: 11,800 SARs (twelve thousand eight hundred SARs). |
5.3.5 | Subject to Section 5.3.6, the Employee shall receive the following the following, determined target number of MGIP PS pursuant to the Margin Improvement Performance Share Agreements in place for other participants under the Long Term Plan: |
(i) | 4,152 PS (four thousand one hundred fifty two PS). |
5.3.6 | The Employee acknowledges and agrees that all grants of PS, SARs and MGIP PS as per Sections 5.3.3 through 5.3.5 hereof are |
(i) | subject to the approval by the AGCO Compensation Committee; and |
(ii) | subject to the terms and conditions of the Long Term Plan and to the terms and conditions as provided for in the standard award agreements for the PS, the SARs and the MGIP. |
5.3.7 | By way of example, the following calculation explains the computation of a pro rata grant: |
5.4 | Other Extraordinary Payments |
5.4.1 | Save for Sections 5.1.1 through 5.3.7 above and unless otherwise expressly agreed upon in writing, the payment of any other gratuities, bonuses, profit shares, premiums or other extraordinary payments will be on a purely voluntary basis and subject to the provision that even repeated payments without the explicit repetition of such |
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6. | Expenses |
7. | Company Car |
7.1 | The Employer will grant to the Employee a company car for business and private use for the Senior Vice President Level with all expenses paid (i.e., including insurance premiums, fees, spare parts, maintenance, repairs and fuel). The Employee acknowledges and agrees that he shall be fully responsible for his share of any social security charges and any other charges and/or taxes due under applicable law resulting from the benefit of the private use of the company car and that the Employer shall deduct the social security charges and any other charges and/or taxes due under applicable law in relation to the private use of the company car from Employee's Base Salary. |
7.2 | The Employee confirms and warrants that Employee will fully comply with any restrictions of use and other regulations as per the leasing agreement (e.g., as to additional drivers) between the Employer and the lessor. A copy of the leasing agreement will be handed over to the Employee as soon as available. |
8. | Housing Costs / Travel to Secondary Residence |
8.1 | The Employer will reimburse the Employee the reasonable costs for temporary living in Switzerland for a 60-day-period (maximum). The Employee acknowledges and agrees that he shall be fully responsible for his share of any social security charges and any other charges and/or taxes due under applicable law in relation to the reimbursement of such costs for temporary living and that the Employer shall deduct the social security charges and any other charges and/or taxes due under applicable law in relation to the reimbursement of such costs for temporary living from Employee's Base Salary. |
8.2 | The Employer will reimburse the reasonable housing costs for a primary residence of the Employee in Switzerland. The Employee acknowledges and agrees that he shall be fully responsible for his share of any social security charges and any other charges and/or taxes due under applicable law in relation to such reasonable housing costs and that the Employer shall deduct the social security charges and any other charges and/or taxes due under applicable law in relation to the reasonable housing costs for a primary residence from Employee's Base Salary. |
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8.3 | The Employer will provide reimbursement of the reasonable costs for travel to the secondary residence of Employee in Germany, if any. The travel to the secondary residence in Germany should be planned in conjunction with business trips when possible. The Employee acknowledges and agrees that he shall be fully responsible for his share of any social security charges and any other charges and/or taxes due under applicable law in relation to the reimbursement of such costs for travel to his secondary residence in Germany and that the Employer shall deduct the social security charges and any other charges and/or taxes due under applicable law in relation to the reimbursement of such costs for travel to his secondary residence in Germany from Employee's Base Salary. |
9. | Hours of Work |
10. | Employee's General Obligations |
10.1 | The Employee shall faithfully and diligently perform his tasks, in compliance with the instructions given to him by Mr. Martin Richenhagen, Chairman, President and CEO of AGCO, the Board of Directors of AGCO and/or the managing officer(s) of the Employer. |
10.2 | The Employee shall devote his full working time to the Employer and shall not undertake other professional activities, whether paid or unpaid, and/or accept other employments, positions, or any corporate function (e.g. board membership) during the term of this Agreement, except as provided for in this Agreement or as disclosed and accepted at the time this Agreement is entered into. The Employee must obtain the written approval of the Employer before acceptance of such position. The Employer is free to decline giving such written approval without an obligation to state reasons. The Employer is aware that the Employee is (i) a member of the board of directors of the Förderverein State International School Seeheim since 2005, (ii) a member of the dean's advisory board of WHU Graduate School of Management since 2008, (iii) a member of the board of directors of the American Chamber of Commerce in Germany from 2003-2005 and again since 2010, and (iv) the president of the advisory council, USO Rhein Main area since 2012. The Employer approves these activities of Employee. |
10.3 | Before accepting any political office or engaging in any other activity in the public interest (e.g., charity work), the Employee must seek the opinion of the Employer. |
11. | Incapacity to Work (Sick Pay / Pay in case of Accident) |
11.1 | Should the Employee be incapacitated due to illness, accident or the like to perform his duties under this Agreement, the Employee shall notify the Employer immediately and shall provide a medical certificate evidencing such incapacity. The Employer |
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11.2 | During absence from work due to illness, accident or the like, the Employee shall be paid in accordance with the regulations as per the sick pay insurance and/or accident insurance in place. |
11.3 | The Employer will pay the full insurance premiums for sick pay coverage and accident insurance premiums for occupational and non-occupational accident. |
12. | Pension and Capital Plan (2nd Pillar / "BVG") |
12.1 | Pension Plan for Base Salary |
12.1.1 | The Employee is required to join the pension plan of the Employer. Affiliation, membership and coverage are governed by the relevant regulations, a copy of which will be handed over to the Employee. |
12.1.2 | The Employer and the Employee shall pay the contributions to the pension plan for the Base Salary pursuant to the choice of Employee as per the form outlining the options for the employee retirement credits. As per Section 4.3 hereof, the Employee's contributions will be deducted from the monthly salary payment. |
12.1.3 | The Employee shall be vested in the Employer's pension plan as of the Commencement Date (e.g., for vested benefits transferred to the pension fund), subject to the relevant pension plan regulations. |
12.2 | Capital Plan for Incentive or Bonus Payments |
12.2.1 | Incentive or bonus payments in cash, if any, will be covered under an additional capital plan ("Capital Plan"), subject to the Capital Plan. A copy of the Capital Plan will be handed over to the Employee. |
12.2.2 | The Employer will pay the full contributions for the pension portion under the Capital Plan. The Employee will pay the full contributions for the disability and the survivor benefits under the Capital Plan. As per Section 4.3 hereof, the Employee's contributions will be deducted from the monthly salary payment. |
12.2.3 | Under the Capital Plan, the contributions will be transferred to the provider of the Capital Plan. For the purpose of this Section 12.2.3, however, the accumulated account balance (with returns) of the Employee under the Capital Plan shall vest over 10 years at 1/10th per year of service (pro rata). The accumulated account balance (with returns) will be fully vested in the calendar month, in which the Employee reaches the 58th year of one's life; i.e., in June 2023 at the earliest or at such later date depending on the Commencement Date. Provided that, the Employee should |
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12.2.4 | For the avoidance of doubt and provided that the Employee is still employed on the date a Change in Control (as defined in Section 16.1) in and limited to AGCO occurs, the Employee is under no obligation to pay a sum under Section 12.2.3 and shall, irrespective of Section 12.2.3, become fully vested in the amount of the accumulated account balance under the Capital Plan (with returns) as of the date a Change in Control (as defined Section 16.1) in and limited to AGCO occurs. Amounts accumulated after the date a Change in Control (as defined in Section 16.1) in and limited to AGCO occurs will vest immediately; i.e., upon payment of the contribution. |
13. | Health Insurance ("KVG"), Travel Insurance |
13.1 | The Employee is eligible to enroll in the Employer's health insurance plan, subject to the terms and conditions thereof. The Employer will, on a monthly basis, reimburse to the Employee the health insurance premiums of the Employee and his family (limited to his spouse or partner and his children) under a Swiss health insurance scheme. The Employee acknowledges and agrees that he shall be fully responsible for his share of any social security charges and any other charges and/or taxes due under applicable law in relation to the reimbursement of such health insurance premiums and that the Employer shall deduct the social security charges and any other charges and/or taxes due under applicable law in relation to the reimbursement of such health insurance premiums from Employee's Base Salary. |
13.2 | In view of Section 3.3, Employer undertakes, at the Employer's expense and for the benefit of the Employee, to take out travel insurance with USD 1 million accident coverage, subject to the terms and conditions of such travel insurance policy. |
13.3 | Should the Employee, subject to the approval of the competent Swiss authorities (if required), choose to maintain his family’s longstanding and portable global health insurance policies with DKV Deutsche Krankenversicherung AG, the Employer will reimburse the Employee for 50% of the health insurance premiums associated with these policies as per Section 13.1. To convert the premiums in a foreign currency into Swiss Francs, the same exchange rate shall be used for an entire calendar year. For the |
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14. | Holidays |
14.1 | In addition to the public holidays as applicable in the jurisdiction of the registered place of incorporation of the Employer, the Employee shall be entitled to 20 days of paid holidays p.a. (pro rata). |
14.2 | Holidays shall be taken at times agreed with the Employer. The Employee shall give sufficient notice of intention to take holidays to the Employer, of whom the written approval to the specific dates is required. At least two weeks (i.e., ten working days) of paid holidays per year of service shall be granted consecutively. |
14.3 | The Employer may require the Employee to take paid holidays at times designated by the Employer, provided that such paid holidays are announced at least 90 calendar days in advance. |
15. | Term and Termination |
15.1 | This Agreement shall run for an indefinite period of time. It may, by either Party, be terminated by the end of a calendar month giving six months prior written notice, such notice being effective as per the relevant date of the expiry of the notice period. |
15.2 | Notwithstanding Section 15.1, the Agreement will automatically lapse at the end of the calendar month, in which the Employee reaches the 65th year of one's life. |
16. | Change in Control |
16.1 | For the purpose of this Agreement, change in control ("Change in Control") means change in the ownership of AGCO, change in the effective control of AGCO or change in the ownership of a substantial portion of AGCO's assets, including each of the following (for the purpose of this Section 16, AGCO shall also include the Employer, except for a change of control within the AGCO group of companies): |
(i) | change in the ownership of AGCO occurs on the date that any one person, or more than one person acting as a group, acquires ownership of stock of AGCO that, together with stock held by such person or group, possess more than fifty percent (50%) of the total fair market value or total voting power of the stock of AGCO (unless any one person, or more than one person acting as a group, who is considered to own more than fifty percent (50%) of the total fair market value or total voting power of the stock of AGCO, acquires additional stock); or |
(ii) | change in the effective control of AGCO is presumed (which presumption may be rebutted by the Compensation Committee of the board of AGCO) to occur on the date that either: any one person, or more than one person acting as a group, acquires (or has acquired during the 12 month period ending on the date |
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(iii) | a majority of members of the board of AGCO is replaced during any 12 month period by directors whose appointment or election is not endorsed by a majority of the members of AGCO's board prior to the date of the appointment or election of such new directors; or |
(iv) | a change in the ownership of a substantial portion of AGCO's assets occurs on the date that any one person, or more than one person acting as a group, acquires (or has acquired during the 12 month period ending on the date of the most recent acquisition by such person or persons) assets from AGCO that have a total fair market value equal to forty percent (40%) or more of the total fair market value of all of the assets of AGCO immediately prior to such acquisition or acquisitions unless the assets are transferred to: a stockholder of AGCO (immediately before the asset transfer) in exchange for or with respect to its stock; an entity, fifty percent (50%) or more of the total value or voting power of which is owned, directly or indirectly by AGCO; a person, or more than one person acting as a group, that owns, directly or indirectly, fifty percent (50%) or more of the total value or voting power of all of the outstanding stock of AGCO; or an entity, at least fifty percent (50%) of the total value or voting power is owned, directly or indirectly, by a person, or more than one person acting as a group, that owns directly or indirectly, fifty percent (50%) or more of the total value or voting power of all of the outstanding stock of AGCO. |
16.2 | During two years following a Change in Control (as defined in Section 16.1), the Employee's position (including offices, titles and reporting requirements), duties and responsibilities shall not be reduced without the prior written consent of the Employee. In addition, the Employee shall not be required to work at another principal place of work other than the principal place of work at which the Employee was based at the time of the Change in Control. |
16.3 | During two years following a Change in Control (as defined in Section 16.1), the Employee's compensation, including Base Salary, incentive or bonus compensation opportunity, pension and other benefits shall not be reduced nor modified |
17. | Severance Payment |
17.1 | Severance Payment unrelated to a Change in Control |
17.1.1 | Subject to Section 17.3 and provided that the payment of a severance is, be it in whole or in part, permissible under any applicable law if and when due, the Employee shall be entitled to a severance payment ("Severance Payment") unrelated to a Change in Control (as defined in Section 16.1) in case the Employer, after the end of the first year of service, terminates the Agreement pursuant to Section 15.1 or in case the |
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(i) | a sum in the amount of the Base Salary for one year as per Section 4.1 at the rate in effect on the last day of the employment relationship; plus |
(ii) | a sum in the amount of the pro rata portion of an incentive or bonus payment, to which the Employee would have been entitled for the year of termination or a longer relevant period of time had the Employee remained employed for the entire year or the longer relevant period time, subject to the terms of the relevant incentive plans and the agreements thereunder. |
17.1.2 | The Parties acknowledge and agree that the Severance Payment is an extraordinary payment, which, given its nature, is no part of the Employee's salary and is not pensionable. The Employer shall deduct from the Severance Payment the social security charges and any other charges and/or taxes due under applicable law. |
17.1.3 | The part of the Severance Payment in the amount of the Base Salary as per Section 17.1.1(i) will become due in three equal installments. The first installment will be due with the last salary payment prior to the lapse of the notice period, the second installment three months and the third installment six months after the last salary payment was due. The part of the Severance Payment in the amount of a pro rata portion of an incentive or bonus payment as per Section 17.1.1(ii) will become due at such time as such payments are customarily made by the Employer or any Plan administrator. At the Employer's sole discretion, Employer may, but must not, make early payments of any part of the Severance Payment with the effect of full discharge. In case of late payment of any part of the Severance Payment, no interest of any kind will accrue. |
17.1.4 | For the avoidance of doubt, no Severance Payment will be owed under this Section 17.1 |
(i) | if the Employer terminates the Employment for just cause ("wichtige Gründe") pursuant to Article 337 Swiss Code of Obligations; or |
(ii) | if the Employee terminates the Agreement of his own free will as per Section 15.1 without Good Reason (as defined in Section 17.3.5); or |
(iii) | if the Agreement lapses because the Employee reaches the 65th year of one's life as per Section 15.2. |
17.2 | Severance Payment in case of Change in Control |
17.2.1 | Subject to Section 17.3 and provided that the payment of a severance is, be it in whole or in part, permissible under any applicable law if and when due, the Employee shall be entitled to a severance payment in case the Employer, after the end of the first year of service, terminates the Agreement pursuant to Section 15.1 within two years after a Change in Control (as defined in Section 16.1) or in case the Employee terminates the Agreement for Good Reason (as defined in Section 17.3.5) within two years after a |
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(i) | a sum in the amount of two times the yearly Base Salary as per Section 4.1 at the rate in effect on the last day of the employment relationship; plus |
(ii) | a sum in the amount of the pro rata portion of an incentive or bonus payment, to which the Employee would have been entitled for the year of termination or a longer relevant period of time had the Employee remained employed for the entire year or the longer relevant period time, subject to the terms of the relevant incentive plans and the agreements thereunder. |
(iii) | a sum in the amount equal to the three year average of the awards received by the Employee during the prior two completed years and the current year's trend (based upon results through the month most recently complete prior to the termination, extrapolated for the complete year) multiplied by two. |
17.2.2 | In addition to the elements of the Change in Control-Severance Payment in Section 17.2.1, the Employer shall continue the Employee's group life insurance and group health coverage for a period of two years, subject to the same payments by the Employee that the Employee was required to make prior to termination. The Employer is entitled to modify life insurance and health benefits provided that such modifications are applicable to other similar employees of Employer. To the extent that coverage of the Employee after termination is no longer possible under the group life insurance and/or group health coverage, Employer shall pay the Employee, not less frequently than monthly, the reasonable cost that Employee must incur to obtain the same benefits or reasonably similar benefits otherwise. |
17.2.3 | The Parties acknowledge and agree that the Change in Control-Severance Payment is an extraordinary payment, which, given its nature, is no part of the Employee's salary and is not pensionable. The Employer shall deduct from the Change in Control-Severance Payment the social security charges and any other charges and/or taxes due under applicable law. |
17.2.4 | The Change in Control-Severance Payment as per Section 17.2.1 will become due with the end of the employment relationship and in all events within 30 days after the end of the employment relationship. In case of late payment of any part of the Change in Control-Severance Payment, no interest of any kind will accrue. |
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17.2.5 | For the avoidance of doubt, no Change in Control-Severance Payment will be owed under this Section 17.2 |
(i) | if the Employer terminates the employment for just cause ("wichtige Gründe") pursuant to Article 337 Swiss Code of Obligations; or |
(ii) | if the Employee terminates the Agreement of his own free will as per Section 15.1 without Good Reason (as defined in Section 17.3.5); or |
(iii) | if the Agreement lapses because the Employee reaches the 65th year of one's life as per Section 15.2. |
17.3 | Restrictive Covenants applicable to Severance Payment and Change in Control-Severance Payment |
17.3.1 | Notwithstanding Section 17.1 and/or Section 17.2, a Severance Payment under Section 17.1 or a Change in Control-Severance Payment under Section 17.2 is only owed, if, when due pursuant to Section 17.1 or 17.2, the payment of a Severance Payment or a Change in Control-Severance Payment (or any portion thereof) is not, be it in whole or in part, prohibited by any applicable law. |
17.3.2 | In case a Severance Payment under Section 17.1 should become due, the Employee is under no obligation to seek employment elsewhere. However, if the Employee will start other gainful employment or will provide remunerated, self-employed services within one year after the end of the employment relationship, the Employee must promptly notify the Employer. Any such earnings of the Employee for services provided within one year after the end of the employment relationship (after social security contributions, but pre-income tax and irrespective of the issue, if and when Employee receives actual payment) entitle the Employer to reduce any outstanding portion of the Severance Payment correspondingly or, as the case may be, obligate the Employee to reimburse the Employer. |
17.3.3 | In case a Change in Control-Severance Payment under Section 17.2 should become due, the Employee is required to mitigate the Change in Control-Severance Payment by seeking other gainful employment or by providing remunerated, self-employed services. The Employee must promptly notify the Employer in the event other employment is obtained or remunerated self-employed services are provided. Any such earnings of the Employee for services provided within one year after the end of the employment relationship (after social security contributions, but pre-income tax and irrespective of the issue, if and when Employee receives actual payment) entitle the Employer to reduce any outstanding portion of the Severance Payment correspondingly or, as the case may be, obligate the Employee to reimburse the Employer. |
17.3.4 | Without limiting any of the rights of Employer under Sections 0 through 23, the Employer may cease, upon written notification to the Employee, to make any further payments and to provide any other benefits under Sections 17.1 or 17.2 in the event the Employee breaches any of Employee's obligations under Sections 0 and/or 22. |
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17.3.5 | For the purposes of this Section 17, the Employee shall have good reason ("Good Reason") to terminate his employment hereunder upon certain circumstances, including but not limited to |
(i) | a substantial reduction in the Employee's aggregate Base Salary and annual incentive compensation taken as a whole, excluding any reductions caused by the performance of the Employer and/or AGCO or the Employee, including but not limited to, the failure by the Employer and/or AGCO to achieve performance targets established from time to time by the Board of Directors of AGCO and/or under the Incentive Plan or Long Term Incentive Plan or from below budget performance by the Employer and/or AGCO; or |
(ii) | the Employer's failure to make payments of the Base Salary and incentive compensation, but only upon notice of such failure given by the Employee within 90 days of the initial existence of the failure and the subsequent failure of the Employer to cure the non-payment within thirty 30 days of such notice. |
18. | Death of Employee |
18.1 | The Agreement will lapse upon the death of the Employee. |
18.2 | In case the death of the Employee occurs at a point in time, when neither Party has given notice of termination pursuant to Section 15.1, the Employer shall continue to pay, to the estate using the same wire transfer details, the Base Salary at the rate in effect on the day of death for the month, in which death occurred, plus for three additional months, even if the employment would have lapsed before under Section 15.2 at an earlier time and irrespective of any social security or life insurance payments. In addition, the Employer shall pay all incentive or bonus payments accrued or accruable through the end of the month in which the death occurred pursuant to the applicable terms and conditions for such incentive or bonus payments. The Base Salary payments under this Section 18.2 will become due on the days, in which the Base Salary payments would have been due if no death had occurred. Any incentive or bonus payments will become due at such times as such payments are customarily made by the Employer. |
18.3 | In case the death of the Employee occurs after Employee has terminated the Agreement pursuant to the Section 15.1, the Employer shall continue to pay, to the estate using the same wire transfer details, the Base Salary at the rate in effect on the day of death for the month, in which death occurred, plus for three additional months. No incentive or bonus payments will be owed. The Base Salary payments under this Section 18.3 will become due on the days, in which the Base Salary payments would have been due if no death had occurred. |
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19. | Confidentiality |
19.1 | As used herein, "Confidential Information" shall include, but not be limited to, all technical, business and trade information of the Employer and/or any of its subsidiary, sister, and parent companies and affiliates of the Group, and of any third party (such as non-Group business partners), which is of a confidential, trade secret and/or proprietary character and which is either developed by the Employee (alone or with others) or to which the Employee has had access during his employment hereunder. |
19.2 | The Employee shall be prohibited at any time during the continuance of his employment hereunder or at any time thereafter to directly or indirectly disseminate, disclose, and/or use for his own purposes or for any purposes other than those of the Employer or the Group, or through any failure to exercise due care and diligence cause any unauthorized disclosure of, Confidential Information, except |
(i) | as may be required by law; |
(ii) | in the proper performance of the Employee's duties; or |
(iii) | as authorized in writing by the Employer. |
19.3 | Upon termination of his employment hereunder (for whatever reason) and at any other time at the Employer's request the Employee is obligated, without retaining any copies or other record thereof, to deliver to the Employer or any person the Employer may nominate each and every document and all other material of whatever nature and in whatever form in the possession or under the control of the Employee containing or relating, directly or indirectly, to any Confidential Information. |
19.4 | The confidentiality undertaking set forth in this Section 0 shall cease to apply to any information which shall become available to the public generally otherwise than through the default of the Employee. |
20. | Intellectual Property |
20.1 | All intellectual property, including inventions and designs, and other proprietary work effort which the Employee either alone or in conjunction with others invents, conceives, makes or produces while employed by the Employer (whether during working hours or not) and which directly or indirectly: |
(i) | relate to matters within the scope of the Employee's duties or field of responsibility; or |
(ii) | are based on the Employee's knowledge of the actual or anticipated business or interests of the Employer or any of the Group companies; or |
(iii) | are aided by the use of time, materials, facilities or information of the Employer or any of the Group companies |
20.2 | The Employee shall communicate promptly and confidentially in writing to those persons authorized for the purpose by the Board of Directors or other designated body |
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20.3 | The Employer reserves the right to acquire any invention, design and proprietary work effort invented, conceived, made or produced by the Employee merely on occasion of his employment activity, but not during the performance of his contractual duties. The Employer shall inform the Employee in writing within six months upon receipt of the Employee's notice pursuant to Section 20.2 whether it wishes to acquire the rights to such invention, design, or proprietary work effort or whether such invention, design or proprietary work effort will be released to the Employee. |
20.4 | The Employee shall execute and perform at the expense of the Employer both during the continuance of his employment hereunder and at all times thereafter all such applications, assignments, documents, acts and things as may reasonably be required by the Employer for the purpose of obtaining and enforcing in such countries as the Employer may direct all necessary legal protection in respect of inventions, designs and other proprietary work effort owned by the Employer and for vesting the same in the Employer or as the Employer may direct. |
21. | Data Protection, Communication Infrastructure |
21.1 | With the execution of this Agreement, the Employee consents that the Employer may store, transfer, change and delete all personal data in connection with this employment relationship. In particular, the Employee consents to the transfer of personal data concerning the Employee by the Employer to an affiliated company of the Employer outside Switzerland also in case such affiliated company of the Employer should not be subject to data protection rules similar to the ones applicable in Switzerland. |
21.2 | The Employee is aware that this Agreement might, due to AGCO's listing at the NYSE, be filed with the U.S. Securities Exchange Commission or another competent body or bodies and expressly consents to any filing and/or disclosure of this Agreement, be it in whole or in part, as may be required by all relevant regulations, as amended from time to time, governing AGCO's listing at the NYSE. |
21.3 | The Employee shall comply with the Employer's policies and instructions regarding the use of the Employer's telephones and telefax, computers, e-mail system, internet services and software programs ("Communication Infrastructure"). The Employee shall at all times refrain from using the Communication Infrastructure for any excessively private or any inappropriate or illegal purpose. The Employee acknowledges and agrees that all activities on the Communication Infrastructure are automatically saved, and that the Employer has complete access to, and may, in order to verify compliance with the Employer's policies and instructions, monitor at any time the Employee's usage of the Communication Infrastructure, including but not limited to the review of all material and e-mail correspondence and the Employees' internet usage that is saved on or performed via the Communication Infrastructure. |
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22. | Non-Competition, Non-Solicitation |
22.1 | The Employee shall not, for as long as the Employee remains an employee of the Employer and during a period of two years from the taking effect of the termination of this Agreement, alone, or jointly with, or as manager of, agent for, or employee of any person or as a shareholder directly or indirectly carry on or be engaged, concerned or interested in any business competitive to the business of the Group (i.e., the designing, manufacturing, marketing, distributing and the like of agricultural equipment) in all those countries where the Group conducts business (as per Exhibit A) and, if terminated, at the time of the termination of this Agreement or 12 months prior to such termination. |
22.2 | The Parties acknowledge and confirm that one twelfth (1/12) of the annual Base Salary is considered remuneration for the non-competition and non-solicitation undertakings of the Employee. |
22.3 | The Employee shall not, for as long as he remains an employee of the Employer and during a period of two years from the taking effect of the termination of this Agreement |
(i) | solicit, induce or attempt to induce any person who is an employee of the Group to leave the Group or to engage in any business that competes with the Group; or |
(ii) | hire or assist in the hiring of any person who is an employee of the Group to work for any business that competes with the Group; or |
(iii) | solicit, induce or attempt to induce any person or company that is a customer of the Group to discontinue or modify its customer relationship with the Group. |
23. | Liquidated Damages, Remedies |
23.1 | For each violation of the covenants set forth in Sections 0 and/or 22, the Employee shall pay to the Employer an amount of CHF 100,000.00 (one hundred thousand Swiss Francs) as liquidated damages ("Konventionalstrafe") plus such additional damages as may be incurred by the Employer. The payment of this amount, or a multiple thereof, and of additional damages does not operate as a waiver of the obligations set forth in Sections 0 and/or 22. |
23.2 | In addition, the Employer is entitled to obtain a court order for specific performance, as well as adequate injunctive relief or any other judicial measure or remedy available, to immediately stop, prevent and/or prohibit any existing or future violation of the covenants as set forth in Sections 0 and/or 22. |
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24. | General Provisions |
24.1 | Unless otherwise provided for in this Agreement, notices under this Agreement shall be in writing and shall be made to the following addresses: |
(i) | in case of the Employer to: |
(ii) | in case of the Employee to: |
24.2 | Both Parties are required to inform the other Party of any address changes, in which case the new address(es) shall replace the address(es) given in Section 24.1. |
24.3 | This Agreement, to be executed in two original copies (one for Employer and one for Employee), its annexes, exhibits and the policies, rules, and/or regulations listed in Section 24.6 constitute the entire agreement and understanding among the Parties with respect to the employment of the Employee with the Employer, and shall supersede all prior oral and written agreements or understandings of the Parties relating hereto. Any representation or statement (in whatever form) made to the Employee in connection with the Employee's employment not incorporated in this Agreement or the policies, rules, and/or regulations listed in Section 24.6 shall not be valid and have no effect. |
24.4 | This Agreement, including this Section 24.4, may only be modified or amended by a document signed by the Parties. Any provision contained in this Agreement may only be waived by a document signed by the Party waiving such provision. No waiver of any violation or non-performance of this Agreement in one instance shall be deemed to be a waiver of any violation or non-performance in any other instance. To be valid, all waivers must be in writing. |
24.5 | If any provision of this Agreement is found by any competent authority to be void, in-valid or unenforceable, such provision shall be deemed to be deleted from this Agreement and the remaining provisions of this Agreement shall continue in full force. In this event, the Agreement shall be construed, and, if necessary, amended in a way to give effect to, or to approximate, or to achieve a result which is as close as legally possible to the result intended by the provision hereof determined to be void, illegal or unenforceable. |
24.6 | The following policies, rules, and/or regulations, each as amended from time to time, shall be incorporated into this Agreement by reference, and the Employee acknowledges to have received a copy of, and hereby agrees to, all such policies, rules, and/or regulations: |
Employment Agreement AGCO International GmbH / Dr. Richard Robinson Smith | 21 / 26 |
(a) | Current Management Incentive Plan; |
(b) | Current Long Term Incentive Plan; |
(c) | Expense Reimbursement Policy; |
(d) | Code of Ethics / Code of Conduct; |
(e) | Current Sick Pay and Accident Insurance Coverage; |
(f) | Current Pension Plan; Capital Plan; |
(g) | Health Insurance Plan (if applicable); |
(h) | Travel Insurance Plan. |
25. | Governing Law and Jurisdiction |
25.1 | This Agreement, including the jurisdiction clause, shall be governed by, interpreted and construed in accordance with the substantive laws of Switzerland. |
25.2 | Exclusive jurisdiction for all disputes arising out of or in connection with this Agreement shall be with the ordinary courts at the registered place of incorporation of the Employer. |
Employment Agreement AGCO International GmbH / Dr. Richard Robinson Smith | 22 / 26 |
Duluth, GA USA, 16 April 2013 | Frankfurt am Main, Germany, 18 April 2013 | |
Place, Date | Place, Date | |
AGCO International GmbH | ||
/s/ Lucinda B. Smith | /s/ Richard Robinson Smith | |
Lucinda B. Smith | Dr. Richard Robinson Smith |
Employment Agreement AGCO International GmbH / Dr. Richard Robinson Smith | 23 / 26 |
CODE | COUNTRY | AGCO RECOGNISED DISTRIBUTION/REPRESENTATIVE |
AF | AFGHANISTAN | Y |
AL | ALBANIA | Y |
DZ | ALGERIA | Y |
AO | ANGOLA | Y |
AG | ANTIGUA AND BARBUDA | Y |
AR | ARGENTINA | Y |
AU | AUSTRALIA | Y |
AT | AUSTRIA | Y |
AY | AZORES | Y |
BH | BAHRAIN | Y |
BD | BANGLADESH | Y |
BB | BARBADOS, WEST INDIES | Y |
BE | BELGIUM | Y |
BJ | BENIN | Y |
BO | BOLIVIA | Y |
BA | BOSNIA | Y |
BR | BRAZIL | Y |
BG | BULGARIA | Y |
BI | BURUNDI | Y |
CM | CAMEROON | Y |
CA | CANADA | Y |
CF | CENTRAL AFRICAN REPUBLIC | Y |
CL | CHILE | Y |
CN | CHINA | Y |
CO | COLOMBIA | Y |
CG | CONGO | Y |
CD | CONGO, DEM REP | Y |
CR | COSTA RICA | Y |
HR | CROATIA | Y |
CY | CYPRUS | Y |
CZ | CZECH REPUBLIC | Y |
DK | DENMARK | Y |
DJ | DJIBOUTI | Y |
EC | ECUADOR | Y |
EG | EGYPT | Y |
SV | EL SALVADOR | Y |
EE | ESTONIA | Y |
ET | ETHIOPIA | Y |
FJ | FIJI | Y |
Employment Agreement AGCO International GmbH / Dr. Richard Robinson Smith | 24 / 26 |
CODE | COUNTRY | AGCO RECOGNISED DISTRIBUTION/REPRESENTATIVE |
FI | FINLAND | Y |
FR | FRANCE | Y |
GF | FRENCH GUIANA | Y |
PF | FRENCH POLYNESIA | Y |
GA | GABON | Y |
GM | GAMBIA | Y |
GE | GEORGIA | Y |
DE | GERMANY | Y |
GH | GHANA | Y |
GR | GREECE | Y |
GP | GUADELOUPE | Y |
GT | GUATEMALA | Y |
GY | GUYANA | Y |
HAT | HAITI | Y |
HN | HONDURAS | Y |
HK | HONG KONG | Y |
HU | HUNGARY | Y |
IR | I.R.O. IRAN | Y |
IS | ICELAND | Y |
IN | INDIA | Y |
ID | INDONESIA | Y |
IQ | IRAQ | Y |
IE | IRELAND | Y |
IL | ISRAEL | Y |
IT | ITALY | Y |
CI | IVORY COAST | Y |
JM | JAMAICA, WEST INDIES | Y |
JP | JAPAN | Y |
JO | JORDAN | Y |
KZ | KAZAKHSTAN | Y |
KE | KENYA | Y |
KW | KUWAIT | Y |
LV | LATVIA | Y |
LB | LEBANON | Y |
LY | LIBYA | Y |
LT | LITHUANIA | Y |
LU | LUXEMBOURG | Y |
MK | MACEDONIA | Y |
MG | MADAGASCAR | Y |
MW | MALAWI | Y |
MY | MALAYSIA | Y |
ML | MALI | Y |
Employment Agreement AGCO International GmbH / Dr. Richard Robinson Smith | 25 / 26 |
CODE | COUNTRY | AGCO RECOGNISED DISTRIBUTION/REPRESENTATIVE |
MQ | MARTINIQUE | Y |
MU | MAURITIUS | Y |
MX | MEXICO | Y |
MA | MOROCCO | Y |
MZ | MOZAMBIQUE | Y |
MM | MYANMAR | Y |
NP | NEPAL | Y |
NL | NETHERLANDS | Y |
NC | NEW CALEDONIA | Y |
NZ | NEW ZEALAND | Y |
NG | NIGERIA | Y |
NO | NORWAY | Y |
OM | OMAN | Y |
PK | PAKISTAN | Y |
PS | PALESTINE | Y |
PG | PAPUA NEW GUINEA | Y |
PE | PERU | Y |
PH | PHILIPPINES | Y |
PL | POLAND | Y |
PT | PORTUGAL | Y |
PR | PUERTO RICO | Y |
QA | QATAR | Y |
PA | REP. OF PANAMA | Y |
ZM | REP. OF ZAMBIA | Y |
RO | ROMANIA | Y |
RU | RUSSIA | Y |
RW | RWANDA | Y |
WS | SAMOA | Y |
SA | SAUDI ARABIA | Y |
SN | SENEGAL | Y |
CS | SERBIA AND MONTENEGRO | Y |
SC | SEYCHELLES | Y |
SG | SINGAPORE | Y |
SK | SLOVAKIA | Y |
SI | SLOVENIA | Y |
SB | SOLOMON ISLANDS | Y |
ZA | SOUTH AFRICA | Y |
KR | SOUTH KOREA | Y |
ES | SPAIN | Y |
LK | SRI LANKA | Y |
SD | SUDAN | Y |
SR | SURINAME | Y |
SE | SWEDEN | Y |
Employment Agreement AGCO International GmbH / Dr. Richard Robinson Smith | 26 / 26 |
CODE | COUNTRY | AGCO RECOGNISED DISTRIBUTION/REPRESENTATIVE |
CH | SWITZERLAND | Y |
SY | SYRIA | Y |
TW | TAIWAN | Y |
TZ | TANZANIA | Y |
TH | THAILAND | Y |
CD | THE DEM. REP. OF THE CONGO | Y |
TG | TOGO | Y |
TO | TONGA | Y |
TT | TRINIDAD AND TOBAGO | Y |
TN | TUNISIA | Y |
TR | TURKEY | Y |
UG | UGANDA | Y |
UA | UKRAINE | Y |
AE | UNITED ARAB EMIRATES | Y |
GB | UNITED KINGDOM | Y |
US | UNITED STATES | Y |
UY | URUGUAY | Y |
VN | VIETNAM | Y |
ZW | ZIMBABWE | Y |
AGCO CORPORATION | AGCO FINANCE LLC | |||
By: | /s/ David Williams | By: | /s/ Amy V. Hester | |
Name: David Williams | Name: Amy Ventling Hester | |||
Title: Vice President and Treasurer | Title: C.E.O. |
Average Portfolio (USD) | Maximum Annual Pool |
Less than $50,000,000 | 5.00% of Average Portfolio |
$50,000,001 to $75,000,000 | 4.50% of Average Portfolio |
$75,000,001 to $100,000,000 | 4.00% of Average Portfolio |
$100,000,001 and above | 3.75% of Average Portfolio |
AGCO CORPORATION | AGCO FINANCE LLC | |||
By: | /s/ David Williams | By: | /s/ Amy V. Hester | |
Name: David Williams | Name: Amy Ventling Hester | |||
Title: Vice President and Treasurer | Title: C.E.O. |
AGCO CORPORATION | AGCO FINANCE LLC | |||
By: | /s/ David Williams | By: | /s/ Amy V. Hester | |
Name: David Williams | Name: Amy Ventling Hester | |||
Title: Vice President and Treasurer | Title: C.E.O. |
Retainers (1) | USD |
Annual Lead Director Retainer (paid only to Lead Director): | 30,000 |
Annual Director Base Retainer (applies to all Directors): | 100,000 |
Annual Committee Chairperson Retainer: (except Audit Committee and Compensation Committee Chair) | 15,000 |
Annual Audit Committee Chairperson Retainer: | 25,000 |
Annual Compensation Committee Chairperson Retainer: | 20,000 |
Additional Compensation | |
Annual AGCO Stock Grant Award (2) | 120,000 |
1) | Payments of annual retainers are made in accordance with the following provisions: |
I) | Annual Retainers are paid quarterly in four installments (for ease of calculation purposes quarters are divided into 90 days with a 360 day year). |
II) | Annual Retainers accrue as of the first day of each calendar quarter based on the Board and Committee Membership Roster in effect on that date. |
III) | Annual Retainers are paid in advance during the first month of the given calendar quarter (e.g., January for the first quarter). |
IV) | Changes to Board and Committee Memberships (including Chairpersons) will be reviewed and adjustments made to current quarter’s retainer amounts (up or down). |
V) | Any changes in the Retainer amounts due for the current quarter will be reflected in the ensuing quarter’s retainer payment. |
2) | Terms applicable to the Stock Grant Award are defined in the Plan Document. The stock grant equivalent to USD 120,000 is based on closing price on the day of the Annual Shareholder’s meeting. |
AGCO CORP /DE | Exhibit 21.1 |
12/31/2015 | |
Wholly Owned Subsidiaries of AGCO Corporation | Country of Jurisdiction |
AGCO Argentina SA | Argentina |
Indamo SA | Argentina |
AGCO Australia Ltd | Australia |
Sparex Australia PTY Ltd | Australia |
AGCO Austria GmbH | Austria |
Sparex Maschinensubehor Handelsgesellschaft m.b.H | Austria |
Sparex Belgium BVBA | Belgium |
AGCO do Brasil Comercio e Industria Ltda | Brazil |
GSI Brasil Industria e Comercio de Equipamentos Agropecuarios Ltd | Brazil |
Tecnoagro Maquinas Agricolas Ltda | Brazil |
Valtra do Brasil Ltda | Brazil |
AGCO Canada Ltd | Canada |
GSI Electronique Inc | Canada |
Sparex Canada Ltd | Canada |
AGCO (Changzhou) Agricultural Machinery Co. Ltd | China |
AGCO (China) Investment Co., Ltd | China |
AGCO (Daqing) Agricultural Machinery Co., Ltd. | China |
AGCO Dafeng (Yanzhou) Agricultural Machinery Co., Ltd | China |
AGCO Genpowex (Shanghai) Co., Ltd | China |
AGCO GSI (Changzhou) Agriculture Equipment Co., Ltd | China |
Beijing AGCO Trading Co., Ltd | China |
C-Lines Asia Limited | China |
Manway Development Limited | China |
Matexi (Shanghai) Trading Limited | China |
Shanghai GSI Agriculture Equipment Co., Ltd | China |
The GSI Group (Shanghai) Co. Ltd | China |
AGCO A/S | Denmark |
AGCO Danmark A/S | Denmark |
Sparex Limited ApS | Denmark |
AGCO Power Oy | Finland |
AGCO Suomi Oy | Finland |
Valtra OY AB | Finland |
AGCO Distribution SAS | France |
AGCO France SAS | France |
AGCO SAS | France |
C-Lines France SAS | France |
C-Lines International SAS | France |
Sparex S.A.R.L. | France |
AGCO Deutschland GmbH | Germany |
AGCO Deutschland Limited & Co. KG | Germany |
AGCO Feucht GmbH | Germany |
AGCO GmbH | Germany |
AGCO Hohenmölsen GmbH | Germany |
Farmer Automatic GmbH & Co. KG | Germany |
Farmer Automatic Management GmbH | Germany |
Fendt GmbH | Germany |
Fendt Immobilien GmbH | Germany |
Sparex Handels-Und Vertriebs GmbH | Germany |
Unterstutzungskasse der Fella-Werke Gesellschaft mit beschankter Haftung | Germany |
Valtra Deutschland GmbH | Germany |
AGCO Holdings (Hong Kong) Ltd | Hong Kong |
AGCO Hungary Kft | Hungary |
GSI Hungary Kft | Hungary |
AGCO Trading (India) Private Ltd | India |
Sparex (Tractor Accessories) Ltd | Ireland |
AGCO Italia SpA | Italy |
AGCO Italiana Srl | Italy |
C-Lines Italia Srl | Italy |
Farmec Srl | Italy |
Laverda AGCO SPA | Italy |
AGCO Luxembourg S.a.r.l | Luxembourg |
AGCO GSI Asia Sdn Bhd | Malaysia |
AGCO GSI (Malaysia) Sdn. Bhd. | Malaysia |
Cumberland Sales & Services Sdn Bhd | Malaysia |
MY C-Lines SDN BHD | Malaysia |
AGCO Mexico S de RL de CV | Mexico |
GSI Cumberland De Mexico, S. De RL De CV | Mexico |
GSI Cumberland De Mexico Servicios, SA De CV | Mexico |
Impulsora Inqro S.A. de C.V. | Mexico |
Prestadora de Servicios Mexicana del Bajio, SA de CV | Mexico |
Sparex Mexicana S.A. de CV | Mexico |
Ag-Chem Europe Fertilizer Equipment BV | Netherlands |
Ag-Chem Europe Industrial Equipment BV | Netherlands |
AGCO Holding BV | Netherlands |
AGCO International Holdings BV | Netherlands |
AGCO Netherlands BV | Netherlands |
Sparex Limited Vestiging Holland BV | Netherlands |
Valtra International BV | Netherlands |
Sparex Distributors New Zealand Ltd | New Zealand |
Eikmaskin AS | Norway |
AGCO Sp Z.o.o | Poland |
Sparex Polska Sp. Z.o.o. | Poland |
Sparex Portugal Importacao e Comercio de Pecas Lda | Portugal |
Valtractor Comercio de Tractores e Maquinas Agricolas SA | Portugal |
AGCO LLC | Russia |
AGCO Machinery LLC | Russia |
AGCO Holdings (Singapore) Pte. Ltd | Singapore |
AGCO Holdings South Africa | South Africa |
AGCO South Africa Pty Ltd | South Africa |
C-Lines South Africa (Proprietary) Limited | South Africa |
Sparex (Proprietary) Ltd | South Africa |
AGCO Iberia SA | Spain |
Sparex Agrirepuestos SL | Spain |
AGCO AB | Sweden |
AGCO International GmbH | Switzerland |
AGCO Tarim Makineleri Ticaret Ltd Sirketi | Turkey |
C-Lines Middle East DMCC | United Arab Emirates |
Ag-Chem (UK) Ltd | United Kingdom |
AGCO Funding Company | United Kingdom |
AGCO International Ltd | United Kingdom |
AGCO Ltd | United Kingdom |
AGCO Machinery Ltd | United Kingdom |
AGCO Manufacturing Ltd | United Kingdom |
AGCO Pension Trust Ltd | United Kingdom |
AGCO Receivables Ltd | United Kingdom |
AGCO Services Ltd | United Kingdom |
Anglehawk Ltd | United Kingdom |
Massey Ferguson Staff Pension Trust Ltd | United Kingdom |
Massey Ferguson Works Pension Trust Ltd | United Kingdom |
Sparex Holdings Ltd | United Kingdom |
Sparex International Ltd | United Kingdom |
Sparex Ltd | United Kingdom |
Spenco Engineering Company Ltd | United Kingdom |
AGCO Jackson Assembly Company | United States |
Assumption Leasing Company, Inc. | United States |
Export Market Services LLC | United States |
Farmer Automatic, Inc. | United States |
Intersystems Holdings, Inc. | United States |
Intersystems International Inc. | United States |
Massey Ferguson Corp. | United States |
Sparex, Inc. | United States |
The GSI Group, LLC | United States |
AGCO Zambia Ltd | Zambia |
50% or Greater Joint Venture Interests of the Registrant | |
Deutz AGCO Motores SA | Argentina |
Santal Equipamentos SA Comercio e Industria | Brazil |
Groupement International De Mecanique Agricole SA | France |
AGCO-RM (Distribution) Holding BV | Netherlands |
AGCO LLC | Russia |
AGCO Machinery LLC | Russia |
AGCO - Amity JV, LLC | United States |
Intelligent Agricultural Solutions, LLC | United States |
Less Than 50% Joint Venture Interests of the Registrant | |
Algerian Tractor Company Spa | Algeria |
AGCO Capital Argentina SA | Argentina |
AGCO Finance PTY Ltd | Australia |
AGCO Finance GmbH, Landmaschinen Leasing | Austria |
AGCO Finance NV | Belgium |
Banco De Lage Landen Brasil S.A | Brazil |
De Lage Landen Participacoes Ltda (dbaAgricredit do Brasil Ltda) | Brazil |
Massey Ferguson Administradora de Consorcios Ltda | Brazil |
AGCO Finance Canada Ltd | Canada |
AGCO Finance S.N.C. | France |
AGCO Finance GmbH | Germany |
Tractors and Farm Equipment Ltd | India |
AGCO Finance Ltd | Ireland |
Libyan Tractor and Agricultural Commodities Company | Libya |
Compagnie Maghebine de Materials Agricoles et Industriels SA | Morocco |
AGCO Finance B.V | Netherlands |
AGCO RM (Manufacturing) Holding BV | Netherlands |
AGCO Finance Ltd | New Zealand |
AGCO Finance Sp.z.o.o | Poland |
AGCO Finance LLC | Russia |
GolAZ OJSC | Russia |
AGCO Finance AG | Switzerland |
AGCO Finance Ltd | United Kingdom |
AGCO Finance LLC | United States |
Signature | Date | |
/s/ Martin Richenhagen | February 26, 2016 | |
Martin Richenhagen | ||
/s/ Roy V. Armes | February 26, 2016 | |
Roy V. Armes | ||
/s/ Michael C. Arnold | February 26, 2016 | |
Michael C. Arnold | ||
/s/ P. George Benson | February 26, 2016 | |
P. George Benson | ||
/s/ Wolfgang Deml | February 26, 2016 | |
Wolfgang Deml | ||
/s/ Luiz F. Furlan | February 26, 2016 | |
Luiz F. Furlan | ||
/s/ George E. Minnich | February 26, 2016 | |
George E. Minnich | ||
/s/ Gerald L. Shaheen | February 26, 2016 | |
Gerald L. Shaheen | ||
/s/ Mallika Srinivasan | February 26, 2016 | |
Mallika Srinivasan | ||
/s/ Hendrikus Visser | February 26, 2016 | |
Hendrikus Visser | ||
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: | February 26, 2016 | |
/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: | February 26, 2016 | |
/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 | ||
February 26, 2016 | ||
/s/Andrew H. Beck | ||
Andrew H. Beck | ||
Senior Vice President and Chief Financial Officer | ||
February 26, 2016 |
Document and Entity Information Document - USD ($) $ in Billions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Feb. 19, 2016 |
Jun. 30, 2015 |
|
Entity Information [Line Items] | |||
Entity Registrant Name | AGCO CORP /DE | ||
Entity Central Index Key | 0000880266 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 82,449,867 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 4.2 |
Consolidated Balance Sheets Parenthetical - $ / shares |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 83,814,809 | 89,146,093 |
Common stock, shares outstanding | 83,814,809 | 89,146,093 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Operations and Summary of Significant Accounting Policies |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Operations and Summary of Significant Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operations and Summary of Significant Accounting Policies | Operations and Summary of Significant Accounting Policies Business AGCO Corporation and subsidiaries (“AGCO” or the “Company”) is a leading manufacturer and distributor of agricultural equipment and related replacement parts throughout the world. The Company sells a full range of agricultural equipment, including tractors, combines, hay tools, sprayers, forage equipment, tillage, implements, and grain storage and protein production systems. The Company’s products are widely recognized in the agricultural equipment industry and are marketed under a number of well-known brand names including: Challenger®, Fendt®, GSI®, Massey Ferguson® and Valtra®. The Company distributes most of its products through a combination of approximately 3,000 independent dealers and distributors as well as the Company utilizes associates and licensees to provide a distribution channel for its products. In addition, the Company provides retail financing through its finance joint ventures with Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., or “Rabobank.” Basis of Presentation and Consolidation The Company’s Consolidated Financial Statements represent the consolidation of all wholly-owned companies, majority-owned companies and joint ventures in which the Company has been determined to be the primary beneficiary. The Company consolidates a variable interest entity (“VIE”) if the Company determines it is the primary beneficiary. The primary beneficiary of a VIE is the party that has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits that potentially could be significant to the VIE. The Company also consolidates all entities that are not considered VIEs if it is determined that the Company has a controlling voting interest to direct the activities that most significantly impact the joint venture or entity. The Company records investments in all other affiliate companies using the equity method of accounting when it has significant influence. Other investments, including those representing an ownership interest of less than 20%, are recorded at cost. All significant intercompany balances and transactions have been eliminated in the Consolidated Financial Statements. Certain prior period amounts have been reclassified to conform to the current period presentation. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The estimates made by management primarily relate to accounts and notes receivable, inventories, deferred income tax valuation allowances, uncertain tax positions, goodwill and other identifiable intangible assets, and certain accrued liabilities, principally relating to reserves for volume discounts and sales incentives, warranty obligations, product liability and workers’ compensation obligations, and pensions and postretirement benefits. Revenue Recognition Sales of equipment and replacement parts are recorded by the Company when title and risks of ownership have been transferred to an independent dealer, distributor or other customer. In certain countries, sales of certain grain storage and protein production systems in which the Company is responsible for construction or installation and which may be contingent upon customer acceptance, are recorded at the completion of the project. Payment terms vary by market and product, with fixed payment schedules on all sales. The terms of sale generally require that a purchase order or order confirmation accompany all shipments. Title generally passes to the dealer or distributor upon shipment or specified delivery, and the risk of loss upon damage, theft or destruction of the equipment is the responsibility of the dealer, distributor or third-party carrier at the point of the stated shipping or delivery term. In certain foreign countries, the Company retains a form of title to goods delivered to dealers until the dealer makes payment so that the Company can recover the goods in the event of customer default on payment. This occurs as the laws of some foreign countries do not provide for a seller’s retention of a security interest in goods in the same manner as established in the United States Uniform Commercial Code. The only right the Company retains with respect to the title is that enabling recovery of the goods in the event of customer default on payment. The dealer or distributor may not return equipment or replacement parts while its contract with the Company is in force. Replacement parts may be returned only under promotional and annual return programs. Provisions for returns under these programs are made at the time of sale based on the terms of the program and historical returns experience. The Company may provide certain sales incentives to dealers and distributors. Provisions for sales incentives are made at the time of sale for existing incentive programs. These provisions are revised in the event of subsequent modification to the incentive program. See “Accounts and Notes Receivable” for further discussion. In the United States and Canada, amounts due from sales to dealers are immediately due upon a retail sale of the underlying equipment by the dealer with the exception of sales of grain storage and protein production systems. If not previously paid by the dealer in the United States and Canada, installment payments are required generally beginning after the interest-free period with the remaining outstanding equipment balance generally due within 12 months after shipment or delivery. Some specified programs in the United States and Canada may allow for interest-free periods and due dates of up to 24 months for certain products. Interest generally is charged on the outstanding balance six to 12 months after shipment or delivery. Sales terms of some highly seasonal products provide for payment and due dates based on a specified date during the year regardless of the shipment date. Equipment sold to dealers in the United States and Canada is paid in full on average within 12 months of shipment. Sales of replacement parts generally are payable within 30 days of shipment, with terms for some larger, seasonal stock orders generally requiring payment within six months of shipment. Sales of grain storage and protein production systems generally are payable within 30 days of shipment. In other international markets, equipment sales generally are payable in full within 30 to 180 days of shipment or delivery. Payment terms for some highly seasonal products have a specified due date during the year regardless of the shipment or delivery date. Sales of replacement parts generally are payable within 30 to 90 days of shipment, with terms for some larger, seasonal stock orders generally payable within six months of shipment. In certain markets, particularly in North America, there is a time lag, which varies based on the timing and level of retail demand, between the date the Company records a sale and when the dealer sells the equipment to a retail customer. Foreign Currency Translation The financial statements of the Company’s foreign subsidiaries are translated into United States currency in accordance with Accounting Standards Codification (“ASC”) 830, “Foreign Currency Matters.” Assets and liabilities are translated to United States dollars at period-end exchange rates. Income and expense items are translated at average rates of exchange prevailing during the period. Translation adjustments are included in “Accumulated other comprehensive loss” in stockholders’ equity within the Company’s Consolidated Balance Sheets. Gains and losses, which result from foreign currency transactions, are included in the accompanying Consolidated Statements of Operations. Cash and Cash Equivalents Cash at December 31, 2015 and 2014 of $344.6 million and $215.3 million, respectively, consisted primarily of cash on hand and bank deposits. The Company considers all investments with an original maturity of three months or less to be cash equivalents. Cash equivalents at December 31, 2015 and 2014 of $82.1 million and $148.4 million, respectively, consisted primarily of money market deposits, certificates of deposits and overnight investments. Accounts and Notes Receivable Accounts and notes receivable arise from the sale of equipment and replacement parts to independent dealers, distributors or other customers. Payments due under the Company’s terms of sale generally range from one to 12 months and are not contingent upon the sale of the equipment by the dealer or distributor to a retail customer. Under normal circumstances, payment terms are not extended and equipment may not be returned. In certain regions, with respect to most equipment sales, including the United States and Canada, the Company is obligated to repurchase equipment and replacement parts upon cancellation of a dealer or distributor contract. These obligations are required by national, state or provincial laws and require the Company to repurchase a dealer or distributor’s unsold inventory, including inventories for which the receivable already has been paid. The Company offers various sales terms with respect to its products. For sales in most markets outside of the United States and Canada, the Company generally does not charge interest on outstanding receivables with its dealers and distributors. For sales to certain dealers or distributors in the United States and Canada, interest is charged at or above prime lending rates on outstanding receivable balances after interest-free periods. These interest-free periods vary by product and generally range from one to 12 months as previously discussed. In limited circumstances, the Company provides sales terms, and in some cases, interest-free periods that are longer than 12 months for certain products. These are typically specified programs, predominantly in the United States and Canada, in which interest is charged after a period of up to 24 months depending on the year of the sale and the dealer or distributor’s ordering or sales volume during the preceding year. Actual interest-free periods are shorter than described above because the equipment receivable from dealers or distributors in some countries, such as in the United States and Canada, is generally due immediately upon sale of the equipment to a retail customer. Receivables can also be paid prior to terms specified in sales agreements. Under normal circumstances, interest is not forgiven and interest-free periods are not extended. The following summarizes by geographic region, as a percentage of our consolidated net sales, amounts with maximum interest-free periods as presented below (in millions):
The Company has an agreement to permit transferring, on an ongoing basis a majority all of its wholesale interest-bearing and non-interest bearing accounts receivable in North America and Europe to its U.S., Canadian and European finance joint ventures. During 2015, the Company entered into an agreement to permit transferring, on an ongoing basis, a portion of its accounts receivable in Brazil to its Brazilian finance joint venture. Qualified dealers may obtain additional financing through the Company’s U.S., Canadian, European and Brazilian finance joint ventures at the joint ventures’ discretion. The Company provides various volume bonus and sales incentive programs with respect to its products. These sales incentive programs include reductions in invoice prices, reductions in retail financing rates, dealer commissions and dealer incentive allowances. In most cases, incentive programs are established and communicated to the Company’s dealers on a quarterly basis. The incentives are paid either at the time of invoice (through a reduction of invoice price), at the time of the settlement of the receivable, at the time of retail financing, at the time of warranty registration, or at a subsequent time based on dealer purchases. The incentive programs are product-line specific and generally do not vary by dealer. The cost of sales incentives associated with dealer commissions and dealer incentive allowances is estimated based upon the terms of the programs and historical experience, is based on a percentage of the sales price and is recorded at the later of (a) the date at which the related revenue is recognized, or (b) the date at which the sales incentive is offered. The related provisions and accruals are made on a product or product-line basis and are monitored for adequacy and revised at least quarterly in the event of subsequent modifications to the programs. Volume discounts are estimated and recognized based on historical experience, and related reserves are monitored and adjusted based on actual dealer purchases and the dealer’s progress towards achieving specified cumulative target levels. The Company records the cost of interest subsidy payments, which is a reduction in the retail financing rates, at the later of (a) the date at which the related revenue is recognized, or (b) the date at which the sales incentive is offered. Estimates of these incentives are based on the terms of the programs and historical experience. All incentive programs are recorded and presented as a reduction of revenue, due to the fact that the Company does not receive an identifiable benefit in exchange for the consideration provided. Reserves for incentive programs that will be paid either through the reduction of future invoices or through credit memos are recorded as “accounts receivable allowances” within the Company’s Consolidated Balance Sheets. Reserves for incentive programs that will be paid in cash, as is the case with most of the Company’s volume discount programs, as well as sales with incentives associated with accounts receivable sold to its U.S. and Canadian finance joint ventures, are recorded within “Accrued expenses” within the Company’s Consolidated Balance Sheets. Accounts and notes receivable are shown net of allowances for sales incentive discounts available to dealers and for doubtful accounts. Cash flows related to the collection of receivables are reported within “Cash flows from operating activities” within the Company’s Consolidated Statements of Cash Flows. Accounts and notes receivable allowances at December 31, 2015 and 2014 were as follows (in millions):
The Company transfers certain accounts receivable under its accounts receivable sales agreements with its finance joint ventures (Note 4). The Company records such transfers as sales of accounts receivable when it is considered to have surrendered control of such receivables under the provisions of Accounting Standards Update (“ASU”) 2009-16, “Transfers and Servicing (Topic 860): Accounting for Transfers of Financial Assets.” Cash payments are made to the Company’s U.S. and Canadian finance joint ventures for sales incentive discounts provided to dealers related to outstanding accounts receivables sold. The balances of such sales discount reserves that are recorded within “Accrued expenses” as of December 31, 2015 and 2014 were approximately $229.5 million and $236.5 million, respectively. Inventories Inventories are valued at the lower of cost or market using the first-in, first-out method. Market is current replacement cost (by purchase or by reproduction, dependent on the type of inventory). In cases where market exceeds net realizable value (i.e., estimated selling price less reasonably predictable costs of completion and disposal), inventories are stated at net realizable value. Market is not considered to be less than net realizable value reduced by an allowance for an approximately normal profit margin. At December 31, 2015 and 2014, the Company had recorded $134.6 million and $126.5 million, respectively, as an adjustment for surplus and obsolete inventories. These adjustments are reflected within “Inventories, net” within the Company’s Consolidated Balance Sheets. Inventories, net at December 31, 2015 and 2014 were as follows (in millions):
Cash flows related to the sale of inventories are reported within “Cash flows from operating activities” within the Company’s Consolidated Statements of Cash Flows. Property, Plant and Equipment Property, plant and equipment are recorded at cost, less accumulated depreciation and amortization. Depreciation is provided on a straight-line basis over the estimated useful lives of ten to 40 years for buildings and improvements, three to 15 years for machinery and equipment and three to ten years for furniture and fixtures. Expenditures for maintenance and repairs are charged to expense as incurred. Property, plant and equipment, net at December 31, 2015 and 2014 consisted of the following (in millions):
Goodwill, Other Intangible Assets and Long-Lived Assets The Company tests goodwill for impairment, at the reporting unit level, annually and when events or circumstances indicate that fair value of a reporting unit may be below its carrying value. A reporting unit is an operating segment or one level below an operating segment, for example, a component. The Company combines and aggregates two or more components of an operating segment as a single reporting unit if the components have similar economic characteristics. The Company’s reportable segments are not its reporting units. Goodwill is evaluated annually as of October 1 for impairment using a qualitative assessment or a quantitative two-step assessment. If the Company elects to perform a qualitative assessment and determines the fair value of its reporting units more likely than not exceed their carrying value, no further evaluation is necessary. For reporting units where the Company performs a two-step quantitative assessment, the first step requires the Company to compare the fair value of each reporting unit, which is determined based on a combination of a discounted cash flow valuation approach and a market multiple valuation approach, to its respective carrying value, including goodwill. If the fair value of the reporting unit exceeds its carrying value, the goodwill is not considered impaired. If the carrying value is higher than the fair value of the reporting unit, the second step of the quantitative process is required to measure the amount of impairment, if any. The second step of the quantitative assessment results in a calculation of the implied fair value of the reporting unit’s goodwill, which is determined as the excess of the fair value of a reporting unit over the fair values assigned to its assets and liabilities. If the implied fair value of goodwill is less than the carrying value of the reporting unit’s goodwill, the difference is recognized as an impairment loss. The Company reviews its long-lived assets, which include intangible assets subject to amortization, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The evaluation for recoverability is performed at a level where independent cash flows may be attributed to either an asset or asset group. If the Company determines that the carrying amount of an asset or asset group is not recoverable based on the expected undiscounted future cash flows of the asset or asset group, an impairment loss is recorded equal to the excess of the carrying amounts over the estimated fair value of the long-lived assets. Estimates of future cash flows are based on many factors, including current operating results, expected market trends and competitive influences. The Company also evaluates the amortization periods assigned to its intangible assets to determine whether events or changes in circumstances warrant revised estimates of useful lives. Assets to be disposed of by sale are reported at the lower of the carrying amount or fair value, less estimated costs to sell. The results of the Company’s goodwill and long-lived assets impairment analyses conducted as of October 1, 2015, 2014 and 2013 indicated that no reduction in the carrying amount of the Company’s goodwill and long-lived assets was required. The Company’s accumulated goodwill impairment is approximately $180.5 million, which is comprised of approximately $9.1 million recorded in 2012 related to the Chinese harvesting reporting unit and approximately $171.4 million recorded in 2006 related to the Company’s former sprayer reporting unit. The Chinese harvesting business operates within the Asia/Pacific geographical reportable segment. The former sprayer reporting unit operates within the North American geographical reportable segment. Changes in the carrying amount of goodwill during the years ended December 31, 2015, 2014 and 2013 are summarized as follows (in millions):
During 2013, the Company reduced goodwill for financial reporting purposes by approximately $8.0 million related to the realization of tax benefits associated with the excess tax basis deductible goodwill resulting from the Company’s acquisition of Valtra. The Company amortizes certain acquired identifiable intangible assets primarily on a straight-line basis over their estimated useful lives, which range from five to 50 years. The acquired intangible assets have a weighted average useful life as follows:
For the years ended December 31, 2015, 2014 and 2013, acquired intangible asset amortization was $42.7 million, $41.0 million and $47.8 million, respectively. The Company estimates amortization of existing intangible assets will be $42.1 million for 2016, $41.9 million for 2017, $41.9 million for 2018, $41.9 million for 2019, and $41.3 million for 2020. The Company has previously determined that two of its trademarks have an indefinite useful life. The Massey Ferguson trademark has been in existence since 1952 and was formed from the merger of Massey-Harris (established in the 1890’s) and Ferguson (established in the 1930’s). The Massey Ferguson brand is currently sold in over 140 countries worldwide, making it one of the most widely sold tractor brands in the world. The Company also has identified the Valtra trademark as an indefinite-lived asset. The Valtra trademark has been in existence since the late 1990’s, but is a derivative of the Valmet trademark which has been in existence since 1951. The Valmet name transitioned to the Valtra name over a period of time in the marketplace. The Valtra brand is currently sold in approximately 50 countries around the world. Both the Massey Ferguson brand and the Valtra brand are primary product lines of the Company’s business, and the Company plans to use these trademarks for an indefinite period of time. The Company plans to continue to make investments in product development to enhance the value of these brands into the future. There are no legal, regulatory, contractual, competitive, economic or other factors that the Company is aware of or that the Company believes would limit the useful lives of the trademarks. The Massey Ferguson and Valtra trademark registrations can be renewed at a nominal cost in the countries in which the Company operates. Changes in the carrying amount of acquired intangible assets during 2015 and 2014 are summarized as follows (in millions):
Accrued Expenses Accrued expenses at December 31, 2015 and 2014 consisted of the following (in millions):
Warranty Reserves The warranty reserve activity for the years ended December 31, 2015, 2014 and 2013 consisted of the following (in millions):
The Company’s agricultural equipment products generally are under warranty against defects in materials and workmanship for a period of one to four years. The Company accrues for future warranty costs at the time of sale based on historical warranty experience. Approximately $35.1 million and $38.9 million of warranty reserves are included in “Other noncurrent liabilities” in the Company’s Consolidated Balance Sheets as of December 31, 2015 and 2014, respectively. Insurance Reserves Under the Company’s insurance programs, coverage is obtained for significant liability limits as well as those risks required to be insured by law or contract. It is the policy of the Company to self-insure a portion of certain expected losses primarily related to workers’ compensation and comprehensive general liability, product and vehicle liability. Provisions for losses expected under these programs are recorded based on the Company’s estimates of the aggregate liabilities for the claims incurred. Stock Incentive Plans Stock compensation expense (credit) was recorded as follows (in millions). Refer to Note 10 for additional information regarding the Company’s stock incentive plans during 2015, 2014 and 2013:
Research and Development Expenses Research and development expenses are expensed as incurred and are included in engineering expenses in the Company’s Consolidated Statements of Operations. Advertising Costs The Company expenses all advertising costs as incurred. Cooperative advertising costs normally are expensed at the time the revenue is earned. Advertising expenses for the years ended December 31, 2015, 2014 and 2013 totaled approximately $50.9 million, $59.8 million and $60.5 million, respectively. Shipping and Handling Expenses All shipping and handling fees charged to customers are included as a component of net sales. Shipping and handling costs are included as a part of cost of goods sold, with the exception of certain handling costs included in selling, general and administrative expenses in the amount of $26.6 million, $29.2 million and $29.3 million for the years ended December 31, 2015, 2014 and 2013, respectively. Interest Expense, Net Interest expense, net for the years ended December 31, 2015, 2014 and 2013 consisted of the following (in millions):
Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Refer to Note 6 for additional information regarding the Company’s income taxes. Net Income Per Common Share Basic income per common share is computed by dividing net income by the weighted average number of common shares outstanding during each period. Diluted income per common share assumes the exercise of outstanding stock-settled stock appreciation rights (“SSARs”) and the vesting of performance share awards and restricted stock units using the treasury stock method when the effects of such assumptions are dilutive. During 2014 and 2013, the appreciation of the excess conversion value of the Company’s former 11/4% contingently convertible senior subordinated notes was included in the diluted net income per common share using the treasury stock method when the impact of such assumption was dilutive. 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 during the years ended December 31, 2015, 2014 and 2013 is as follows (in millions, except per share data):
SSARs to purchase 1.2 million shares, 1.0 million shares and 0.8 million shares were outstanding for the years ended December 31, 2015, 2014 and 2013, respectively, but not included in the calculation of weighted average common and common equivalent shares outstanding because they had an antidilutive impact. Comprehensive Income (Loss) The Company reports comprehensive income (loss), defined as the total of net income (loss) and all other non-owner changes in equity, and the components thereof in its Consolidated Statements of Stockholders’ Equity and Consolidated Statements of Comprehensive Income. The components of other comprehensive loss and the related tax effects for the years ended December 31, 2015, 2014 and 2013 are as follows (in millions):
Derivatives The Company uses foreign currency contracts to hedge the foreign currency exposure of certain receivables and payables. The contracts are for periods consistent with the exposure being hedged and generally have maturities of one year or less. These contracts are classified as non-designated derivative instruments. The Company also enters into foreign currency contracts designated as cash flow hedges of expected sales. The Company’s foreign currency contracts mitigate risk due to exchange rate fluctuations because gains and losses on these contracts generally offset losses and gains on the exposure being hedged. The notional amounts of the foreign currency contracts do not represent amounts exchanged by the parties and, therefore, are not a measure of the Company’s risk. The amounts exchanged are calculated on the basis of the notional amounts and other terms of the contracts. The credit and market risks under these contracts are not considered to be significant. The Company’s interest expense is, in part, sensitive to the general level of interest rates, and the Company manages its exposure to interest rate risk through the mix of floating rate and fixed rate debt. From time to time, the Company enters into interest rate swap agreements in order to manage the Company’s exposure to interest rate fluctuations. The Company uses non-derivative and, periodically, derivative instruments to hedge a portion of the Company’s net investment in foreign operations against adverse movements in exchange rates. The Company’s hedging policy prohibits it from entering into any foreign currency contracts for speculative trading purposes. Refer to Note 11 for additional information regarding the Company’s derivative instruments and hedging activities. Recent Accounting Pronouncements In November 2015, the Financial Accounting Standards Board (“FASB”) issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes” (“ASU 2015-17”). ASU 2015-17 amends existing guidance to require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The standard does not amend the existing requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount. ASU 2015-17 is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The standard may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. Early adoption is permitted as of the beginning of an interim or annual reporting period. The Company elected to early adopt this standard and has applied the requirements of ASU 2015-17 retrospectively to all periods presented. In the Consolidated Balance Sheet as of December 31, 2014, the Company reclassified approximately $217.2 million as a decrease to current deferred tax assets, thereby increasing noncurrent deferred tax assets by approximately $190.1 million and decreasing noncurrent deferred tax liabilities by approximately $27.1 million. In September 2015, the FASB issued ASU 2015-16, “Simplifying the Accounting for Measurement-Period Adjustments” (“ASU 2015-16”). ASU 2015-16 amends existing guidance to require that an acquirer in a business combination recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. In addition, an entity is required to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in earnings by line item that would have been recorded in previous reporting periods if the adjustments to the provisional amounts had been recognized as of the acquisition date. Prior period information is no longer to be revised. The standard is effective prospectively for adjustments to provisional amounts that occur after fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The Company expects that the adoption of ASU 2015-16 on January 1, 2016 will not have a material impact on its results of operations and financial condition. In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory” (“ASU 2015-11”), which changes the measurement principle for inventory from the “lower of cost or market” to “lower of cost and net realizable value.” The new principle is part of the FASB’s simplification initiative and applies to entities that measure inventory using a method other than the last-in, first-out (“LIFO”) or the retail inventory methods. Entities using the first-in, first-out (“FIFO”) or average cost methods of measuring inventory no longer will need to consider replacement cost or net realizable value less an approximate normal profit margin in the subsequent measurement of inventory. Net realizable value is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The standard does not amend or change the determination of the cost of inventory. The standard is effective prospectively for inventory measurements for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The Company expects that the adoption of ASU 2015-11 on January 1, 2017 will not have a material impact on its results of operations and financial condition. In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”). ASU 2015-03 amends existing guidance to require the presentation of debt issuance costs in the balance sheet as a direct deduction from the carrying amount of the related debt liability instead of a deferred charge. Given the absence of authoritative guidance within ASU 2015-03, in August 2015 the FASB issued ASU 2015-15, “Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements” (“ASU 2015-15”), which clarifies that the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. ASU 2015-03 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The Company expects that the adoption of ASU 2015-03 on January 1, 2016 will not have a material impact on its results of operations and financial condition. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”), which supersedes existing revenue recognition guidance under current U.S. GAAP. ASU 2014-09 outlines a comprehensive, single revenue recognition model that provides a five-step analysis in determining when and how revenue is recognized. The new model will require revenue recognition to depict the transfer of promised goods or services to customers at an amount that reflects the consideration expected to be received in exchange for those goods or services. Additional disclosures also will be required to enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. ASU 2014-09 is effective for reporting periods beginning after December 15, 2016 using either a full retrospective or a modified retrospective approach. Early adoption is not permitted. On July 9, 2015, the FASB delayed the effective date of ASU 2014-09 by one year or to reporting periods beginning after December 15, 2017. Early adoption is permitted, but not any earlier than the original effective date. The Company is currently evaluating the impact of adopting this standard on the Company’s results of operations and financial condition. |
Acquisitions |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | Acquisitions On April 17, 2015, the Company acquired Farmer Automatic GmbH & Co. KG (“Farmer Automatic”) for approximately $17.9 million, net of cash acquired of approximately $0.1 million. Farmer Automatic, headquartered in Laer, Germany, manufactures and supplies poultry housing and related products, including egg production cages and broiler production equipment. The acquisition was financed with available cash on hand. The Company allocated the purchase price to the assets acquired and liabilities assumed based on preliminary estimates of their fair values as of the acquisition date. The acquired net assets primarily consisted of accounts receivable, inventories, accounts payable and accrued expenses, property, plant and equipment, and customer relationship, technology and trademark identifiable intangible assets. The Company recorded approximately $9.6 million of customer relationship, technology and trademark identifiable intangible assets and approximately $10.0 million of goodwill associated with the acquisition. The results of operations of Farmer Automatic have been included in the Company’s Consolidated Financial Statements as of and from the date of the acquisition. The acquired identifiable intangible assets of Farmer Automatic as of the date of the acquisition are summarized in the following table (in millions):
On September 11, 2014, the Company acquired the remaining 39% interest of Santal Equipamentos S.A. Comércio e Indústria (“Santal”) for approximately R$9.0 million (or approximately $3.7 million). Santal is headquartered in Ribeirão Preto, Brazil, and manufactures and distributes sugarcane planting, harvesting, handling and transportation equipment as well as replacement parts across Brazil. Due to the fact that the Company and the seller each had a call option and put option, respectively, with varying dates with respect to the remaining 39% interest in Santal, the fair value of the redeemable noncontrolling interest had previously been recorded within “Temporary equity” in the Company’s Consolidated Balance Sheets. The acquisition of the remaining interest was funded with available cash on hand. The redemption and related amounts settled were reflected in “Additional paid-in capital” in the Company’s Consolidated Balance Sheets. On August 1, 2014, the Company acquired Intersystems Holdings, Inc. (“Intersystems”) for approximately $134.4 million, net of cash acquired of approximately $4.1 million (or approximately $130.3 million, net). Intersystems, headquartered in Omaha, Nebraska, designs and manufactures commercial material handling solutions, primarily for the agricultural, biofuels and food and feed processing industries. The acquisition was financed with available cash on hand and the Company’s credit facility (Note 7). The Company allocated the purchase price to the assets acquired and liabilities assumed based on preliminary estimates of their fair values as of the acquisition date. The acquired net assets primarily consisted of accounts receivable, inventories, accounts payable and accrued expenses, property, plant and equipment, and customer relationship, technology and trademark identifiable intangible assets. The Company recorded approximately $46.3 million of customer relationship, technology and trademark identifiable intangible assets and approximately $89.6 million of goodwill associated with the acquisition. The goodwill was reported within the Company’s North American geographical reportable segment. The results of operations of Intersystems have been included in the Company’s Consolidated Financial Statements as of and from the date of acquisition. The acquired identifiable intangible assets of Intersystems as of the date of the acquisition are summarized in the following table (in millions):
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Restructuring and Other Infrequent Expenses |
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Restructuring and Related Activities [Abstract] | |
Restructuring and Other Infrequent Expenses | Restructuring and Other Infrequent Expenses During 2015 and 2014, the Company announced and initiated several actions to rationalize employee headcount at various manufacturing facilities located in Europe, China, Brazil, Argentina and the United States, as well as various administrative offices located in Europe, Brazil, China and the United States. The aggregate headcount reduction of approximately 2,100 employees in 2014 and 2015 was initiated in order to reduce costs in response to softening global market demand and reduced production volumes. The Company recorded approximately $46.4 million of restructuring and other infrequent expenses during 2014 associated with these rationalizations, of which approximately $44.4 million related to severance and other related costs. During 2014, the Company paid approximately $19.0 million of these costs, and as of December 31, 2014, had a remaining accrued balance of approximately $25.4 million. During 2015, the Company recorded and paid approximately $22.3 million and $29.5 million, respectively, of restructuring and other infrequent expenses associated with severance and other related costs. The remaining $16.9 million balance of severance and other related costs accrued as of December 31, 2015, inclusive of approximately $1.3 million of negative foreign currency translation impacts, are expected be paid primarily during 2016. |
Accounts Receivable Sales Agreements |
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Accounts Receivable Sales Agreements [Abstract] | |
Accounts Receivable Sales Agreements | Accounts Receivable Sales Agreements At December 31, 2015 and 2014, 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 finance joint ventures. During 2015, the Company entered into an accounts receivable sales agreement that permits the sale, on an ongoing basis, of a portion of its wholesale receivables in Brazil to its Brazilian finance joint venture. As of December 31, 2015 and 2014, the cash received from receivables sold under the U.S., Canadian, European and Brazilian accounts receivable sales agreements was approximately $1.1 billion and $1.2 billion, respectively. Under the terms of the accounts receivable sales agreements in North America, Europe and Brazil, the Company pays an annual servicing fee related to the servicing of the receivables sold. The Company also pays the respective AGCO Finance entities an interest payment calculated based upon LIBOR plus a margin on any non-interest bearing accounts receivable outstanding and sold under the sales agreements. These fees are reflected within losses on the sales of receivables included within “Other expense, net” in the Company’s 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 Consolidated Statements of Operations, were approximately $18.8 million, $24.8 million and $25.6 million during 2015, 2014 and 2013, respectively. The Company’s finance joint ventures in Brazil and Australia also provide wholesale financing directly 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 December 31, 2015 and 2014, these finance joint ventures had approximately $17.7 million and $43.3 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. |
Investments in Affiliates |
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Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in Affiliates | Investments in Affiliates Investments in affiliates as of December 31, 2015 and 2014 were as follows (in millions):
The Company’s manufacturing joint ventures as of December 31, 2015 consisted of Groupement International De Mecanique Agricole SA (“GIMA”) (a joint venture with a third-party manufacturer to purchase, design and manufacture components for agricultural equipment in France), and joint ventures with third-party manufacturers to assemble tractors in Algeria and engines in South America. The other joint ventures represent investments in farm equipment manufacturers, an electronic and software system manufacturer, distributors and licensees. The Company’s equity in net earnings of affiliates for the years ended December 31, 2015, 2014 and 2013 were as follows (in millions):
Summarized combined financial information of the Company’s finance joint ventures as of December 31, 2015 and 2014 and for the years ended December 31, 2015, 2014 and 2013 were as follows (in millions):
The majority of the assets of the Company’s finance joint ventures represents finance receivables. The majority of the liabilities represents notes payable and accrued interest. Under the various joint venture agreements, Rabobank or its affiliates provide financing to the joint venture companies (Note 14). At December 31, 2015 and 2014, the Company’s receivables from affiliates were approximately $70.1 million and $108.4 million, respectively. The receivables from affiliates are reflected within “Accounts and notes receivable, net” within the Company’s Consolidated Balance Sheets. The portion of the Company’s retained earnings balance that represents undistributed retained earnings of equity method investees was approximately $296.8 million and $293.3 million as of December 31, 2015 and 2014, respectively. |
Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes The sources of income (loss) before income taxes and equity in net earnings of affiliates were as follows for the years ended December 31, 2015, 2014 and 2013 (in millions):
The provision for income taxes by location of the taxing jurisdiction for the years ended December 31, 2015, 2014 and 2013 consisted of the following (in millions):
At December 31, 2015, the Company’s foreign subsidiaries had approximately $2.3 billion of undistributed earnings. These earnings are considered to be indefinitely invested, and, accordingly, no income taxes have been provided on these earnings. Determination of the amount of unrecognized deferred taxes on these earnings is not practicable; however, unrecognized foreign tax credits would be available to reduce a portion of the tax liability. A reconciliation of income taxes computed at the United States federal statutory income tax rate (35%) to the provision for income taxes reflected in the Company’s Consolidated Statements of Operations for the years ended December 31, 2015, 2014 and 2013 is as follows (in millions):
The significant components of the deferred tax assets and liabilities at December 31, 2015 and 2014 were as follows (in millions):
The Company recorded a net deferred tax asset of $14.3 million and $4.2 million as of December 31, 2015 and 2014, respectively. As reflected in the preceding table, the Company had a valuation allowance of $75.8 million and $93.3 million as of December 31, 2015 and 2014, respectively. A valuation allowance is established when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company assessed the likelihood that its deferred tax assets would be recovered from estimated future taxable income and available tax planning strategies and determined that the valuation allowance at December 31, 2015 and 2014 was appropriate. In making this assessment, all available evidence was considered, including the current economic climate, as well as reasonable tax planning strategies. The Company believes it is more likely than not that the Company will realize the remaining deferred tax assets, net of the valuation allowance, in future years. The Company had net operating loss carryforwards of $266.1 million as of December 31, 2015, with expiration dates as follows: 2016 - $13.0 million; 2017 - $30.7 million; 2018 - $39.8 million; and thereafter or unlimited - $182.6 million. The net operating loss carryforwards of $266.1 million were entirely in tax jurisdictions outside of the United States. The Company paid income taxes of $97.6 million, $223.6 million and $174.5 million for the years ended December 31, 2015, 2014 and 2013, respectively. At December 31, 2015 and 2014, the Company had $133.0 million and $130.6 million, respectively, of unrecognized income tax benefits, all of which would affect the Company’s effective tax rate if recognized. At December 31, 2015 and 2014, the Company had approximately $61.2 million and $64.7 million, respectively, of accrued or deferred taxes related to uncertain income tax positions connected with ongoing income tax audits in various jurisdictions that it expects to settle or pay in the next 12 months. The Company accrued approximately $5.1 million and $2.3 million of interest and penalties related to unrecognized tax benefits in its provision for income taxes during 2015 and 2014, respectively. At December 31, 2015 and 2014, the Company had accrued interest and penalties related to unrecognized tax benefits of $18.3 million and $15.3 million, respectively. A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits as of and during the years ended December 31, 2015 and 2014 is as follows (in millions):
The Company and its subsidiaries file income tax returns in the United States and in various state, local and foreign jurisdictions. The Company and its subsidiaries are routinely examined by tax authorities in these jurisdictions. As of December 31, 2015, a number of income tax examinations in foreign jurisdictions were ongoing. It is possible that certain of these ongoing examinations may be resolved within 12 months. Due to the potential for resolution of federal, state and foreign examinations, and the expiration of various statutes of limitation, it is reasonably possible that the Company’s gross unrecognized income tax benefits balance may materially change within the next 12 months. Due to the number of jurisdictions and issues involved and the uncertainty regarding the timing of any settlements, the Company is unable at this time to provide a reasonable estimate of such change that may occur within the next 12 months. Although there are ongoing examinations in various jurisdictions, the 2012 through 2015 tax years generally remain subject to examination in the United States by federal and state authorities. In the Company’s significant foreign jurisdictions, primarily the United Kingdom, France, Germany, Switzerland, Finland and Brazil, the 2010 through 2015 tax years generally remain subject to examination by their respective tax authorities. In Brazil, the Company is contesting disallowed deductions related to the amortization of certain goodwill amounts (Note 12). |
Indebtedness |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indebtedness | Indebtedness Indebtedness consisted of the following at December 31, 2015 and 2014 (in millions):
At December 31, 2015, the aggregate scheduled maturities of long-term debt, excluding the current portion of long-term debt, are as follows (in millions):
Cash payments for interest were approximately $63.0 million, $68.4 million and $66.4 million for the years ended December 31, 2015, 2014 and 2013, respectively. 4 1/2% Senior Term Loan The Company’s €200.0 million (or approximately $217.2 million as of December 31, 2015) 41/2% senior term loan with 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. Credit Facility The Company’s revolving credit and term loan facility consists of an $800.0 million multi-currency revolving credit facility and a €312.0 million (or approximately $338.9 million as of December 31, 2015) term loan facility. The Company is not required to make quarterly payments towards the term loan facility. On June 19, 2015, the Company amended its current credit facility agreement, providing the Company with the ability to replace the current term loan facility denominated in United States dollars with an equivalent amount denominated in Euros. In August 2015, the Company replaced the outstanding term loan facility in the amount of $355.0 million, denominated in U.S. dollars, with an equivalent amount denominated in Euros. The Company also extended the maturity date of the credit facility from June 28, 2019 to June 26, 2020 and amended the interest rate margin. Under the amended credit facility agreement, interest accrues on amounts outstanding, at the Company’s option, depending on the currency borrowed, at either (1) LIBOR or EURIBOR plus a margin ranging from 1.0% to 1.75% 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 U.S. dollars plus 1.0% plus a margin ranging from 0.0% to 0.25% based on the Company’s leverage ratio. Previously, the interest accrued 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 U.S. dollars plus 1.0% plus a margin ranging from 0.0% to 0.5% based on the Company’s leverage ratio. As is more fully described in Note 11, the Company entered into an interest rate swap in August 2015 to convert the term loan facility’s floating interest rate to a fixed interest rate of 0.33% plus the applicable margin over the remaining life of the term loan facility. 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 December 31, 2015, no amounts were outstanding under the Company’s multi-currency revolving credit facility, and the Company had the ability to borrow approximately $800.0 million under the facility. Approximately €312.0 million (or approximately $338.9 million) was outstanding under the term loan facility as of December 31, 2015. As of December 31, 2014, the Company had $404.4 million of outstanding borrowings under its former credit facility and availability to borrow approximately $750.6 million. Approximately $49.4 million was outstanding under the multi-currency revolving credit facility and $355.0 million was outstanding under the term loan facility as of December 31, 2014. During 2015, the Company designated its €312.0 million ($338.9 million at December 31, 2015) term loan facility as a hedge of its net investment in foreign operations to offset foreign currency translation gains or losses on the net investment. See Note 11 for additional information about the net investment hedge. 1.056% Senior Term Loan In December 2014, the Company entered into a term loan with the European Investment Bank, which provided the Company with the ability to borrow up to €200.0 million. The €200.0 million (or approximately $217.2 million as of December 31, 2015) of funding was received on January 15, 2015 with a maturity date of January 15, 2020. The Company has the ability to prepay the term loan before its maturity date. Interest is payable on the term loan at 1.056% per annum, payable quarterly in arrears on January 15, April 15, July 15 and October 15 of each year. The term loan contains covenants regarding, among other things, the incurrence of indebtedness and the making of certain payments, as well as commitments regarding amounts of future research and development expenses in Europe, and is subject to acceleration in the event of default. The Company also has to fulfill financial covenants with respect to a net leverage ratio and an interest coverage ratio. 5 7/8% Senior Notes The Company’s $297.4 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. As is more fully described in Note 11, the Company entered into an interest rate swap in August 2015 to convert the senior notes’ fixed interest rate to a floating interest rate over the remaining life of the senior notes. A weighted average interest rate of 4.53% was applicable from the date of inception of the interest rate swap to December 31, 2015. Former Convertible Senior Subordinated Notes During the first six months of 2014, holders of the Company’s former 11/4% convertible senior subordinated notes converted or the Company repurchased approximately $49.7 million of aggregate principal amount of the notes. In May 2014, the Company announced its election to redeem the remaining $151.5 million balance of the notes with a redemption date of June 20, 2014. Substantially all of the holders of the notes elected to convert their remaining notes prior to the redemption date. The redemptions settled in July 2014. For the year ended December 31, 2014, the Company issued a total of 1,437,465 shares of its common stock associated with the $81.0 million excess conversion value of all notes converted. The Company reflected the repayment of the principal of the notes totaling $201.2 million within “Repurchase or conversion of convertible senior subordinated notes” within the Company’s Consolidated Statements of Cash Flows for the year ended December 31, 2014. During the year ended December 31, 2013, holders of the Company’s former 11/4% convertible senior subordinated notes’ converted less than $0.1 million of principal amount of the notes. The Company issued 286 shares of its common stock associated with the less than $0.1 million excess conversion value of the notes. The Company reflected the repayment of the principal of the notes totaling less than $0.1 million within “Repurchase or conversion of convertible senior subordinated notes” within the Company’s Consolidated Statements of Cash Flows for the year ended December 31, 2013. The following table sets forth the interest expense recognized for the year ended December 31, 2014 relating to the notes’ contractual interest coupon and the interest expense recognized for the year ended December 31, 2013 relating to both the notes’ contractual interest coupon as well as the amortization of the discount on the liability component for the Company’s former 11/4% convertible senior subordinated notes (in millions):
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 December 31, 2015 and 2014, outstanding letters of credit totaled $17.5 million and $18.5 million, respectively. |
Employee Benefit Plans |
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Pension and Other Postretirement Benefit Expense [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit Plans | Employee Benefit Plans The Company sponsors defined benefit pension plans covering certain employees, principally in the United States, the United Kingdom, Germany, Finland, Norway, France, Switzerland and Argentina. The Company also provides certain postretirement health care and life insurance benefits for certain employees, principally in the United States and Brazil. The Company also maintains an Executive Nonqualified Pension Plan (“ENPP”), which provides certain U.S.-based senior executives with retirement income for a period of 15 years based on a percentage of the average of their highest three non-consecutive years of base salary and bonus during their final ten years of employment (referred to as their “three-year average compensation”), reduced by the senior executive’s social security benefits and 401(k) employer-matching contributions, as if the executive had made the maximum contribution. The benefit paid to the executives ranges from 2.25% to 3.00% of their three-year average compensation multiplied by credited years of service (subject to a maximum of 20 years). Benefits under the ENPP vest if the participant has attained age 50 with at least ten years of service (five years of which include years of participation in the ENPP), but are not payable until the participant reaches age 65. The ENPP is an unfunded, nonqualified defined benefit pension plan. In 2015, the Company amended its ENPP to (a) limit participation to only those individuals who were participants in the ENPP as of July 31, 2015, (b) add an additional benefit, commencing at the end of the current 15-year benefit period, providing each participant a lifetime annuity in an amount equal to the annual payment during that 15-year period (or an equivalent value if a joint and survivor annuity is selected by the participant), and (c) to make various other administrative changes. The new benefit generally will be available only to participants who retire on or after reaching normal retirement age and otherwise have a vested benefit under the ENPP. Net annual pension costs for the years ended December 31, 2015, 2014 and 2013 for the Company’s defined benefit pension plans and ENPP are set forth below (in millions):
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The weighted average assumptions used to determine the net annual pension costs for the Company’s defined benefit pension plans and ENPP for the years ended December 31, 2015, 2014 and 2013 are as follows:
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Net annual postretirement benefit costs for the years ended December 31, 2015, 2014 and 2013 are set forth below (in millions, except percentages):
The following tables set forth reconciliations of the changes in benefit obligation, plan assets and funded status as of December 31, 2015 and 2014 (in millions):
The following table summarizes the activity in accumulated other comprehensive loss related to the Company’s ENPP and defined pension and postretirement benefit plans during the years ended December 31, 2015 and 2014 (in millions):
As of December 31, 2015, the Company’s accumulated other comprehensive loss included net actuarial losses of approximately $319.0 million and net prior service cost of approximately $11.2 million related to the Company’s defined benefit pension plans and ENPP. The estimated net actuarial losses and net prior service cost for the defined benefit pension plans and ENPP expected to be amortized from the Company’s accumulated other comprehensive loss during the year ended December 31, 2016 are approximately $10.7 million and $1.1 million, respectively. As of December 31, 2015, the Company’s accumulated other comprehensive loss included net actuarial losses of approximately $1.4 million and net prior service cost of approximately $3.6 million related to the Company’s U.S. and Brazilian postretirement health care benefit plans. The estimated net actuarial losses and net prior service cost for postretirement health care benefit plans expected to be amortized from the Company’s accumulated other comprehensive loss during the year ended December 31, 2016 are less than $0.1 million and approximately $0.1 million, respectively. The aggregate projected benefit obligation, accumulated benefit obligation and fair value of plan assets for defined benefit pension plans, ENPP and other postretirement plans with accumulated benefit obligations in excess of plan assets were $869.2 million, $816.9 million and $627.9 million, respectively, as of December 31, 2015, and $956.4 million, $901.7 million and $677.2 million, respectively, as of December 31, 2014. The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for the Company’s U.S.-based defined benefit pension plans and ENPP with accumulated benefit obligations in excess of plan assets were $112.2 million, $98.4 million and $38.1 million, respectively, as of December 31, 2015, and $102.9 million, $90.2 million and $41.5 million, respectively, as of December 31, 2014. The Company’s accumulated comprehensive loss as of December 31, 2015 reflects a reduction in equity of $335.2 million, net of taxes of $87.1 million, primarily related to the Company’s U.K. pension plan, where the projected benefit obligation exceeded the plan assets. In addition, the Company’s accumulated comprehensive loss as of December 31, 2015 reflects a reduction in equity of approximately $1.4 million, net of taxes of $0.5 million, related to the Company’s GIMA joint venture. The amount represents 50% of GIMA’s unrecognized net actuarial losses and unrecognized prior service cost associated with its pension plan. In addition, GIMA recognized a net actuarial loss due to settlements during 2015 of approximately $0.1 million. The Company’s accumulated comprehensive loss as of December 31, 2014 reflected a reduction in equity of $339.9 million, net of taxes of $87.6 million, primarily related to the Company’s U.K. pension plan, in which the projected benefit obligation exceeded the plan assets. In addition, the Company’s accumulated comprehensive loss as of December 31, 2014 reflected a reduction in equity of approximately $1.6 million, net of taxes of $0.6 million, related to the Company’s GIMA joint venture. This amount represented 50% of GIMA’s unrecognized net actuarial losses and unrecognized prior service cost associated with its pension plan. In addition, GIMA recognized a net actuarial loss due to settlements during 2014 of approximately $0.2 million. The weighted average assumptions used to determine the benefit obligation for the Company’s defined benefit pension plans and ENPP as of December 31, 2015 and 2014 are as follows:
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The weighted average discount rate used to determine the benefit obligation for the Company’s postretirement benefit plans for the years ended December 31, 2015 and 2014 was 5.1% and 4.6%, respectively. For the years ended December 31, 2015, 2014 and 2013, the Company used a globally consistent methodology to set the discount rate in the countries where its largest benefit obligations exist. In the United States, the United Kingdom and the Euro Zone, the Company constructed a hypothetical bond portfolio of high-quality corporate bonds and then applied the cash flows of the Company’s benefit plans to those bond yields to derive a discount rate. The bond portfolio and plan-specific cash flows vary by country, but the methodology in which the portfolio is constructed is consistent. In the United States, the bond portfolio is large enough to result in taking a “settlement approach” to derive the discount rate, in which high-quality corporate bonds are assumed to be purchased and the resulting coupon payments and maturities are used to satisfy the Company’s U.S. pension plans’ projected benefit payments. In the United Kingdom and the Euro Zone, the discount rate is derived using a “yield curve approach,” in which an individual spot rate, or zero coupon bond yield, for each future annual period is developed to discount each future benefit payment and, thereby, determine the present value of all future payments. Under the settlement and yield curve approaches, the discount rate is set to equal the single discount rate that produces the same present value of all future payments. Effective January 1, 2016, the Company adopted a spot yield curve to determine the discount rate in the United Kingdom to measure the plan’s service cost and interest cost for the year ended December 31, 2016. Previously, the Company had utilized a single weighted-average discount rate derived from the “yield curve approach” to measure the plan’s benefit obligation, service cost and interest cost. Going forward, the Company has elected to utilize an approach that discounts the individual expected service cost and interest cost cash flows using the applicable spot rates derived from the yield curve over the projected cash flow period. For measuring the expected U.S. postretirement benefit obligation at December 31, 2015, the Company assumed a 7.25% health care cost trend rate for 2016 decreasing to 5.0% by 2025. For measuring the expected U.S. postretirement benefit obligation at December 31, 2014, the Company assumed a 7.0% health care cost trend rate for 2015 decreasing to 5.0% by 2019. For measuring the Brazilian postretirement benefit plan obligation at December 31, 2015, the Company assumed a 12.6% health care cost trend rate for 2016, decreasing to 6.75% by 2026. For measuring the Brazilian postretirement benefit plan obligation at December 31, 2014, the Company assumed a 12.25% health care cost trend rate for 2015, decreasing to 6.45% by 2025. Changing the assumed health care cost trend rates by one percentage point each year and holding all other assumptions constant would have had the following effect to service and interest cost for 2015 and the accumulated postretirement benefit obligation for both the U.S. and Brazilian postretirement plans at December 31, 2015 (in millions):
The Company currently estimates its minimum contributions and benefit payments to its U.S.-based underfunded defined benefit pension plans and unfunded ENPP for 2016 will aggregate approximately $1.1 million. The Company currently estimates its benefit payments for 2016 to its U.S.-based postretirement health care and life insurance benefit plans will aggregate approximately $1.5 million and its benefit payments for 2016 to its Brazilian postretirement health care benefit plans will aggregate approximately less than $0.1 million. The Company currently estimates its minimum contributions for underfunded plans and benefit payments for unfunded plans for 2016 to its non-U.S.-based defined benefit pension plans will aggregate approximately $31.5 million, of which approximately $23.1 million relates to its U.K. pension plan. During 2015, approximately $51.3 million of benefit payments were made related to the Company’s defined benefit pension plans and ENPP. At December 31, 2015, the aggregate expected benefit payments for the Company’s defined benefit pension plans and ENPP are as follows (in millions):
During 2015, approximately $1.2 million of benefit payments were made related to the Company’s U.S. and Brazilian postretirement benefit plans. At December 31, 2015, the aggregate expected benefit payments for the Company’s U.S. and Brazilian postretirement benefit plans are as follows (in millions):
Investment Strategy and Concentration of Risk The weighted average asset allocation of the Company’s U.S. pension benefit plans as of December 31, 2015 and 2014 are as follows:
The weighted average asset allocation of the Company’s non-U.S. pension benefit plans as of December 31, 2015 and 2014 are as follows:
The Company categorizes its pension plan assets into one of three levels based on the assumptions used in valuing the asset. See Note 13 for a discussion of the fair value hierarchy as per the guidance in Accounting Standards Codification 820, “Fair Value Measurements” (“ASC 820”). The Company’s valuation techniques are designed to maximize the use of observable inputs and minimize the use of unobservable inputs. The Company uses the following valuation methodologies to measure the fair value of its pension plan assets: Equity Securities: Equity securities are valued on the basis of the closing price per unit on each business day as reported on the applicable exchange. Fixed Income: Fixed income securities are valued using the closing prices in the active market in which the fixed income investment trades. Fixed income funds are valued using the net asset value of the fund, which is based on the fair value of the underlying securities. Cash: These investments primarily consist of short-term investment funds which are valued using the net asset value. Alternative Investments: These investments are reported at fair value as determined by the general partner of the alternative investment. The “market approach” valuation technique is used to value investments in these funds. The funds typically are open-end funds as they generally offer subscription and redemption options to investors. The frequency of such subscriptions or redemptions is dictated by each fund’s governing documents. The amount of liquidity provided to investors in a particular fund generally is consistent with the liquidity and risk associated with the underlying portfolio (i.e., the more liquid the investments in the portfolio, the greater the liquidity provided to investors). Liquidity of individual funds varies based on various factors and may include “gates,” “holdbacks” and “side pockets” imposed by the manager of the fund, as well as redemption fees that may also apply. Investments in these funds typically are valued utilizing the net asset valuations provided by their underlying investment managers, general partners or administrators. The funds consider subscription and redemption rights, including any restrictions on the disposition of the interest, in its determination of the fair value. Insurance Contracts: Insurance contracts are valued using current prevailing interest rates. The fair value of the Company’s pension assets as of December 31, 2015 is as follows (in millions):
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The following is a reconciliation of Level 3 assets as of December 31, 2015 (in millions):
The fair value of the Company’s pension assets as of December 31, 2014 is as follows (in millions):
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The following is a reconciliation of Level 3 assets as of December 31, 2014 (in millions):
All tax-qualified pension fund investments in the United States are held in the AGCO Corporation Master Pension Trust. The Company’s global pension fund strategy is to diversify investments across broad categories of equity and fixed income securities with appropriate use of alternative investment categories to minimize risk and volatility. The primary investment objective of the Company’s pension plans is to secure participant retirement benefits. As such, the key objective in the pension plans’ financial management is to promote stability and, to the extent appropriate, growth in funded status. The investment strategy for the plans’ portfolio of assets balances the requirement to generate returns with the need to control risk. The asset mix is recognized as the primary mechanism to influence the reward and risk structure of the pension fund investments in an effort to accomplish the plans’ funding objectives. The overall investment strategy for the U.S.-based pension plans is to achieve a mix of approximately 15% of assets for the near-term benefit payments and 85% for longer-term growth. The overall U.S. pension funds invest in a broad diversification of asset types. The Company’s U.S. target allocation of retirement fund investments is 30% large- and small-cap domestic equity securities, 12% international equity securities, 44% broad fixed income securities and 14% in alternative investments. The Company has noted that over very long periods, this mix of investments would achieve an average return of approximately 6.0%. The overall investment strategy for the non-U.S. based pension plans is to achieve a mix of approximately 30% of assets for the near-term benefit payments and 70% for longer-term growth. The overall non-U.S. pension funds invest in a broad diversification of asset types. The Company’s non-U.S. target allocation of retirement fund investments at December 31, 2015 was 45% equity securities, 35% broad fixed income investments and 20% in alternative investments. The majority of the Company’s non-U.S. pension fund investments are related to the Company’s pension plan in the United Kingdom. The Company has noted that over very long periods, this mix of investments would achieve an average return of approximately 7.25%. In arriving at the choice of an expected return assumption of 7.0% for its U.K.-based plans for the year ended December 31, 2016, the Company has tempered this historical indicator with lower expectations for returns and equity investment in the future as well as the administrative costs of the plans. Equity securities primarily include investments in large-cap and small-cap companies located across the globe. Fixed income securities include corporate bonds of companies from diversified industries, mortgage-backed securities, agency mortgages, asset-backed securities and government securities. Alternative and other assets include investments in hedge fund of funds that follow diversified investment strategies. To date, the Company has not invested pension funds in its own stock and has no intention of doing so in the future. Within each asset class, careful consideration is given to balancing the portfolio among industry sectors, geographies, interest rate sensitivity, dependence on economic growth, currency and other factors affecting investment returns. The assets are managed by professional investment firms, who are bound by precise mandates and are measured against specific benchmarks. Among asset managers, consideration is given, among others, to balancing security concentration, issuer concentration, investment style and reliance on particular active investment strategies. The Company participates in a small number of multiemployer plans in the Netherlands and Sweden. The Company has assessed and determined that none of the multiemployer plans which it participates in are individually, or in the aggregate, significant to the Company’s Consolidated Financial Statements. The Company does not expect to incur a withdrawal liability or expect to significantly increase its contributions over the remainder of the multiemployer plans’ contract periods. The Company maintains separate defined contribution plans covering certain employees, primarily in the United States, the United Kingdom and Brazil. Under the plans, the Company contributes a specified percentage of each eligible employee’s compensation. The Company contributed approximately $12.0 million, $13.3 million and $13.0 million for the years ended December 31, 2015, 2014 and 2013, respectively. |
Stockholders' Equity |
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Stockholders' Equity Note [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity | Stockholders’ Equity Common Stock At December 31, 2015, the Company had 150,000,000 authorized shares of common stock with a par value of $0.01 per share, with approximately 83,814,809 shares of common stock outstanding and approximately 4,311,886 shares reserved for issuance under the Company’s 2006 Long-Term Incentive Plan (the “2006 Plan”) (Note 10). Share Repurchase Program In June 2012, the Company’s Board of Directors approved a share repurchase program under which the Company is permitted to repurchase up to $50.0 million of shares of its common stock. This share repurchase program does not have an expiration date. In December 2013, the Company’s Board of Directors approved a second share repurchase program under which the Company is permitted to repurchase up to $500.0 million of shares of its common stock through an expiration date of June 2015. In December 2014, the Board of Directors approved a third share repurchase program under which the Company can repurchase an additional $500.0 million of shares of its common stock through December 2016. During 2015, the Company entered into accelerated share repurchase (“ASR”) agreements with a financial institution to repurchase an aggregate of $287.5 million of shares of the Company’s common stock. The Company received approximately 5,541,930 shares during the year ended December 31, 2015 related to these ASR agreements. During 2014, the Company entered into ASR agreements with a financial institution to repurchase an aggregate of $415.0 million of shares of the Company’s common stock. The Company received approximately 8,248,183 shares during the year ended December 31, 2014 related to these ASR agreements. All shares received under the ASR agreements were retired upon receipt, and the excess of the purchase price over par value per share was recorded to “Additional paid-in capital” within the Company’s Consolidated Balance Sheets. During 2014, through open market transactions, the Company repurchased 1,818,139 shares of its common stock for approximately $84.7 million at an average price paid of $46.60 per share. During 2013, through open market transactions, the Company repurchased less than 0.1 million shares of its common stock for approximately $1.0 million at an average price paid of $49.34 per share. Repurchased shares were retired on the date of purchase, and the excess of the purchase price over par value per share was recorded to “Additional paid-in capital” within the Company’s Consolidated Balance Sheets. As of December 31, 2015, the remaining amount authorized to be repurchased is approximately $244.2 million. During 2016, the Company entered into an ASR agreement with a financial institution to repurchase an aggregate of $60.0 million shares of the Company’s common stock. The Company received approximately 974,619 shares to date in this transaction. The specific number of shares the Company will ultimately repurchase will be determined at the completion of the term of the ASR based on the daily volume-weighted average share price of the Company’s common stock less an agreed-upon discount. Upon settlement of the ASR, the Company may be entitled to receive additional shares of common stock or, under certain circumstances, be required to remit a settlement amount. The Company expects that additional shares will be received by the Company upon final settlement of its current ASR agreement, which expires during the second quarter of 2016. All shares received under the ASR agreement discussed above were retired upon receipt and the excess of the purchase price over par value per share was recorded to “Additional paid-in capital” within the Company’s Consolidated Balance Sheets. Dividends On January 24, 2013, the Company’s Board of Directors approved the initiation of quarterly cash dividends to its stockholders. A quarterly dividend of $0.10 per common share was paid to each of the Company’s stockholders during 2013. On January 24, 2014, the Company’s Board of Directors approved an increase in the quarterly dividend from $0.10 per common share to $0.11 per common share beginning in the first quarter of 2014. On January 22, 2015, the Company’s Board of Directors approved an increase in the quarterly dividend from $0.11 per common share to $0.12 per common share beginning in the first quarter of 2015. On January 28, 2016, the Company’s Board of Directors approved an increase in the quarterly dividend from $0.12 per common share to $0.13 per common share beginning the first quarter of 2016. 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 years ended December 31, 2015 and 2014 (in millions):
The following table sets forth reclassification adjustments out of accumulated other comprehensive loss by component attributed to AGCO Corporation and its subsidiaries for the years ended December 31, 2015 and 2014 (in millions):
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Stock Incentive Plan |
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Share-based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Incentive Plan | Stock Incentive Plan Under the 2006 Plan, up to 10,000,000 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, stock options, restricted stock units and restricted stock awards to employees, officers and non-employee directors of the Company. Long-Term Incentive Plan and Related Performance Awards The Company’s primary long-term incentive plan is a performance share plan that provides for awards of shares of the Company’s common stock based on achieving financial targets, such as targets for earnings per share, return on invested capital and operating margin, as determined by the Company’s Board of Directors. The stock awards under the 2006 Plan are earned over a performance period, and the number of shares earned is determined based on the cumulative or average results for the specified period, depending on the measurement. Performance periods for the Company’s primary long-term incentive plan are consecutive and overlapping three-year cycles, and performance targets are set at the beginning of each cycle. The primary long-term incentive plan provides for participants to earn 33% to 200% of the target awards depending on the actual performance achieved, with no shares earned if performance is below the established minimum target. Awards earned under the 2006 Plan are paid in shares of common stock at the end of each performance period. The compensation expense associated with these awards 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. Compensation expense recorded during 2015, 2014 and 2013 with respect to awards granted was based upon the stock price as of the grant date. The weighted average grant-date fair value of performance awards granted under the 2006 Plan during 2015, 2014 and 2013 was as follows:
During 2015, the Company granted 861,686 performance awards related to varying performance periods. The awards granted assume the maximum target or target level of performance is achieved, as applicable. Performance award transactions during 2015 were as follows and are presented as if the Company were to achieve its maximum levels of performance under the plan:
The 2006 Plan allows for the participant 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 participant’s statutory minimum federal, state and employment taxes which would be payable at the time of grant. Based on the level of performance achieved as of December 31, 2015, no shares were earned or issued. Based on the level of performance achieved as of December 31, 2014, the following shares were earned under the 2012-2014 performance period and issued in the subsequent year, net of shares withheld for taxes related to the earned award:
As of December 31, 2015, 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 $10.1 million, and the weighted average period over which it is expected to be recognized is approximately two years. This estimate is based on the current projected levels of performance of outstanding awards. The compensation cost not yet recognized could be higher or lower based on actual achieved levels of performance. Restricted Stock Units During the year ended December 31, 2015, the Company granted 144,398 restricted stock unit (“RSU”) awards. These awards entitle the participant to receive one share of the Company’s common stock for each RSU granted and vest one-third per year over a three-year requisite service period. Dividends will accrue on all unvested grants until the end of each vesting date within this grant’s three-year requisite service period. In January 2016, the Company amended its RSU award agreement such that dividends will not accrue on unvested grants over the requisite service period on all future RSU grants. The compensation expense associated with these awards is being amortized ratably over the requisite service period for the awards that are expected to vest. The weighted average grant-date fair value of the RSUs granted under the 2006 Plan during the year ended December 31, 2015 was $44.03. RSU transactions during the year ended December 31, 2015 were as follows:
As of December 31, 2015, the total compensation cost related to the unvested RSUs not yet recognized was approximately $4.2 million, and the weighted average period over which it is expected to be recognized is approximately two years. Stock-settled Appreciation Rights In addition to the performance share plans, certain executives and key managers are eligible to receive grants of SSARs. The SSARs provide a participant with the right to receive the aggregate appreciation in stock price over the market price of the Company’s common stock at the date of grant, payable in shares of the Company’s common stock. The participant may exercise his or her SSARs at any time after the grant is vested but no later than seven years after the date of grant. The SSARs vest ratably over a four-year period from the date of grant. SSAR award grants made to certain executives and key managers under the 2006 Plan are made with the base price equal to the price of the Company’s common stock on the date of grant. The Company recorded stock compensation expense of approximately $5.0 million, $5.2 million and $4.7 million associated with SSAR award grants during 2015, 2014 and 2013, respectively. The compensation expense associated with these awards is being amortized ratably over the vesting period. 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 years ended December 31, 2015, 2014 and 2013:
SSAR transactions during the year ended December 31, 2015 were as follows:
At December 31, 2015, the weighted average remaining contractual life of SSARs outstanding was approximately four years. As of December 31, 2015, the total compensation cost related to unvested SSARs not yet recognized was approximately $5.9 million and the weighted-average period over which it is expected to be recognized is approximately two 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 December 31, 2015:
The total fair value of SSARs vested during 2015 was approximately $4.2 million. There were 709,771 SSARs that were not vested as of December 31, 2015. The total intrinsic value of outstanding and exercisable SSARs as of December 31, 2015 was $1.8 million and $1.3 million, respectively. The total intrinsic value of SSARs exercised during 2015 was approximately $1.8 million. The excess tax benefit realized for tax deductions in the United States related to the exercise of SSARs and vesting of RSU awards under the 2006 Plan was approximately $0.7 million for the year ended December 31, 2015. The shortfall in tax benefit realized for tax deductions in the United States related to the exercise of SSARs and vesting of performance awards under the 2006 Plan was approximately $0.2 million for the year ended December 31, 2014. The excess tax benefit realized for tax deductions in the United States related to the exercise of SSARs, vesting of performance awards under the 2006 Plan, and exercise of stock options under the Company’s 1991 Stock Option Plan was approximately $11.4 million for the year ended December 31, 2013. The Company realized an insignificant tax benefit from the exercise of SSARs, vesting of performance awards, vesting of RSU awards and exercise of stock options in certain foreign jurisdictions during the years ended December 31, 2015, 2014 and 2013. On January 26, 2016, the Company granted 334,199 performance award shares (subject to the Company achieving future target levels of performance), 296,200 SSARs and 138,975 of restricted stock units under the 2006 Plan. Director Restricted Stock Grants Pursuant to the 2006 Plan, all non-employee directors receive annual restricted stock grants of the Company’s common stock. All restricted stock grants made to the Company’s directors prior to April 24, 2014 were restricted as to transferability for a period of three years. Effective April 24, 2014, the shares granted on that date and all future grants made to the Company’s directors are restricted as to transferability for a period of one year. 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 2015 grant was made on April 23, 2015 and equated to 22,095 shares of common stock, of which 15,711 shares of common stock were issued, after shares were withheld for taxes. The Company recorded stock compensation expense of approximately $1.1 million during 2015 associated with these grants. As of December 31, 2015, of the 10,000,000 shares reserved for issuance under the 2006 Plan, approximately 4,311,886 shares were available for grant, assuming the maximum number of shares are earned related to the performance award grants discussed above. |
Derivative Instruments and Hedging Activities |
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Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities All derivatives are recognized on the Company’s Consolidated Balance Sheets at fair value. On the date the derivative contract is entered into, the Company designates the derivative as either (1) a fair value hedge of a recognized liability, (2) a cash flow hedge of a forecasted transaction, (3) a hedge of a net investment in a foreign operation, or (4) a non-designated derivative instrument. The Company formally documents all relationships between hedging instruments and hedged items, as well as the risk management objectives and strategy for undertaking various hedge transactions. The Company formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flow of hedged items or the net investment hedges in foreign operations. When it is determined that a derivative is no longer highly effective as a hedge, hedge accounting is discontinued on a prospective basis. The Company categorizes its derivative assets and liabilities into one of three levels based on the assumptions used in valuing the asset or liability. See Note 13 for a discussion of the fair value hierarchy as per the guidance in ASC 820. The Company’s valuation techniques are designed to maximize the use of observable inputs and minimize the use of unobservable inputs. Foreign Currency Risk and Interest Rate Risk The Company has significant manufacturing operations in the United States, France, Germany, Finland and Brazil, and it purchases a portion of its tractors, combines and components from third-party foreign suppliers, primarily in various European countries and in Japan. The Company also sells products in over 140 countries throughout the world. The Company’s most significant transactional foreign currency exposures are the Euro, Brazilian real and the Canadian dollar in relation to the United States dollar, and the Euro in relation to the British pound. The Company attempts to manage its transactional foreign exchange exposure by hedging foreign currency cash flow forecasts and commitments arising from the anticipated settlement of receivables and payables and from future purchases and sales. Where naturally offsetting currency positions do not occur, the Company hedges certain, but not all, of its exposures through the use of foreign currency contracts. The Company’s translation exposure resulting from translating the financial statements of foreign subsidiaries into United States dollars may be partially hedged from time to time. The Company’s most significant translation exposures are the Euro, the British pound and the Brazilian real in relation to the United States dollar and the Swiss franc in relation to the Euro. When practical, the translation impact is reduced by financing local operations with local borrowings. The Company uses floating rate and fixed rate debt to finance its operations. The floating rate debt obligations expose the Company to variability in interest payments due to changes in the EURIBOR and LIBOR benchmark interest rates. The Company believes it is prudent to limit the variability of a portion of its interest payments, and to meet that objective, the Company periodically enters into interest rate swaps to manage the interest rate risk associated with the Company’s borrowings. The Company designates interest rate contracts used to convert the interest rate exposure on a portion of the Company’s debt portfolio from a floating rate to a fixed rate as cash flow hedges, while those contracts converting the Company’s interest rate exposure from a fixed rate to a floating rate are designated as fair value hedges. The Company’s senior management establishes the Company’s foreign currency and interest rate risk management policies. These policies are reviewed periodically by the Finance Committee of the Company’s Board of Directors. The policies allow for the use of derivative instruments to hedge exposures to movements in foreign currency and interest rates. The Company’s policies prohibit the use of derivative instruments for speculative purposes. Counterparty Risk The Company regularly monitors the counterparty risk and credit ratings of all the counterparties to the derivative instruments. The Company believes that its exposures are appropriately diversified across counterparties and that these counterparties are creditworthy financial institutions. If the Company perceives any risk with a counterparty, then the Company would cease to do business with that counterparty. There have been no negative impacts to the Company from any non-performance of any counterparties. Derivative Transactions Designated as Hedging Instruments Foreign Currency Contracts During 2015, 2014 and 2013, the Company designated certain foreign currency contracts as cash flow hedges of expected future sales and purchases. The effective portion of the fair value gains or losses on these cash flow hedges were recorded in other comprehensive loss and are subsequently reclassified into cost of goods sold during the period the sales and purchases are recognized. These amounts offset the effect of the changes in foreign currency rates on the related sale and purchase transactions. The amount of the net loss recorded in other comprehensive loss that was reclassified to cost of goods sold during the years ended December 31, 2015, 2014 and 2013 was approximately $2.4 million, $1.5 million and $0.5 million, respectively, on an after-tax basis. The amount of the unrealized loss recorded to other comprehensive loss related to the outstanding cash flow hedges as of December 31, 2015, 2014 and 2013 was less than $0.1 million, and approximately $0.1 million and $0.2 million, respectively, on an after-tax basis. As of December 31, 2015, there were no outstanding foreign currency cash flow hedge contracts. As of December 31, 2014, the Company had outstanding foreign currency contracts with a notional amount of approximately $23.8 million that were entered into to hedge forecasted sale and purchase transactions. Interest Rate Swap Contracts Cash Flow Hedge During 2015, the Company entered into an interest rate swap instrument with a notional amount of €312.0 million (or approximately $338.9 million at December 31, 2015) and an expiration date of June 26, 2020. The swap was designated and accounted for as a cash flow hedge. Under the swap agreement, the Company pays a fixed interest rate of 0.33% plus the applicable margin, and the counterparty to the agreement pays a floating interest rate based on the three-month EURIBOR. Changes in the fair value of the interest rate swap are recorded in other comprehensive loss. These amounts are subsequently reclassified into “Interest expense, net” as a rate adjustment in the same period in which the related interest expense on the Company’s floating rate term loan facility affects earnings. For the year ended December 31, 2015, the effective portion of the unrealized change in fair value, net of tax, was a loss of approximately $2.0 million, which was recorded in other comprehensive loss. The amount of the net loss recorded in other comprehensive loss that was reclassified into “Interest expense, net” during the year ended December 31, 2015 was approximately $0.3 million, on an after-tax basis. There was no ineffectiveness during the year ended December 31, 2015. Fair Value Hedge During 2015, the Company entered into an interest rate swap instrument with a notional amount of $300.0 million and an expiration date of December 1, 2021 designated as a fair value hedge of the Company’s 57/8% senior notes (Note 7). Under the interest rate swap, the Company pays a floating interest rate based on the three-month LIBOR plus a spread of 4.14% (or a weighted average interest rate of 4.53% from the date of inception of the interest rate swap to December 31, 2015) and the counterparty to the agreement pays a fixed interest rate of 57/8%. The gains and losses related to changes in the fair value of the interest rate swap are recorded to “Interest expense, net” and offset changes in the fair value of the underlying hedged 57/8% senior notes. For the year ended December 31, 2015, the Company recorded unrealized gains on the hedged debt of approximately $2.6 million in “Interest expense, net” in the Consolidated Statements of Operations. The unrealized losses of approximately $2.6 million on the related interest rate swap instrument offset such unrealized gains, and were also recorded in “Interest expense, net” in the Consolidated Statements of Operations. The following table summarizes the activity in accumulated other comprehensive loss related to the derivatives held by the Company during the years ended December 31, 2015, 2014 and 2013 (in millions):
Net Investment Hedges The Company uses non-derivative and, from time to time, derivative instruments, to hedge a portion of its net investment in foreign operations against adverse movements in exchange rates. The Company measures ineffectiveness on these derivatives based on changes in forward rates. For instruments that are designated as hedges of net investments in foreign operations, changes in the fair value of the derivative instruments are recorded in foreign currency translation adjustments, a component of accumulated other comprehensive loss, to offset changes in the value of the net investments being hedged. When the net investment in foreign operations is sold or substantially liquidates, the amounts recorded in accumulated other comprehensive loss are reclassified to earnings. To the extent foreign currency denominated debt is dedesignated from a net investment hedge relationship, changes in the value of the foreign currency denominated debt are recorded in earnings through the maturity date. During 2015, the Company designated its €312.0 million (or approximately $338.9 million at December 31, 2015) term loan facility with a maturity date of June 26, 2020 as a hedge of its net investment in foreign operations to offset foreign currency translation gains or losses on the net investment. For the year ended December 31, 2015, approximately $7.5 million of foreign currency gains were included in the cumulative translation adjustment component of accumulated other comprehensive loss. There was no ineffectiveness with respect to the net investment hedge discussed above during the year ended December 31, 2015. Derivative Transactions Not Designated as Hedging Instruments During 2015, 2014 and 2013, the Company entered into foreign currency contracts to hedge receivables and payables on the Company and its subsidiaries’ balance sheets that are denominated in foreign currencies other than the functional currency. These contracts were classified as non-designated derivative instruments. As of December 31, 2015 and 2014, the Company had outstanding foreign currency contracts with a notional amount of approximately $1,533.9 million and $1,810.5 million, respectively, that were entered into to hedge receivables and payables that are denominated in foreign currencies other than the functional currency. Changes in the fair value of these contracts are reported in “Other expense, net.” For the years ended December 31, 2015, 2014 and 2013, the Company recorded a net loss of approximately $67.3 million and $2.3 million, and a net gain of approximately $9.5 million, respectively, related to these contracts within “Other expense, net” in the Company’s Consolidated Statements of Operations. Gains and losses on such contracts are substantially offset by losses and gains on the remeasurement of the underlying asset or liability being hedged. The table below sets forth the fair value of derivative instruments as of December 31, 2015 (in millions):
The table below sets forth the fair value of derivative instruments as of December 31, 2014 (in millions):
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies The future payments required under the Company’s significant commitments, excluding indebtedness, as of December 31, 2015 are as follows (in millions):
Off-Balance Sheet Arrangements Guarantees The Company maintains a remarketing agreement with its U.S. finance joint venture, whereby the Company is obligated to repurchase repossessed inventory at market values. The Company has an agreement with its U.S. finance joint venture, AGCO Finance LLC, which limits the Company’s purchase obligations under this arrangement to $6.0 million in the aggregate per calendar year. The Company believes that any losses that might be incurred on the resale of this equipment will not materially impact the Company’s financial position or results of operations, due to the fair value of the underlying equipment. At December 31, 2015, the Company guaranteed indebtedness owed to third parties of approximately $68.3 million, primarily related to dealer and end-user financing of equipment. Such guarantees generally obligate the Company to repay outstanding finance obligations owed to financial institutions if dealers or end users default on such loans through 2020. The Company believes the credit risk associated with these guarantees is not material to its financial position or results of operations. Losses under such guarantees have historically been insignificant. In addition, the Company generally would expect to be able to recover a significant portion of the amounts paid under such guarantees from the sale of the underlying financed farm equipment, as the fair value of such equipment is expected to be sufficient to offset a substantial portion of the amounts paid. Other At December 31, 2015, the Company had outstanding non-designated foreign exchange contracts with a gross notional amount of approximately $1,533.9 million, and there were no outstanding designated foreign exchange contracts as of December 31, 2015. The Company sells a majority of its wholesale accounts receivable in North America and Europe to the Company’s U.S., Canadian and European finance joint ventures, and a portion of its wholesale accounts receivable to its finance joint venture in Brazil. The Company also sells certain accounts receivable under factoring arrangements to financial institutions around the world. The Company reviewed the sale of such receivables and determined that these facilities should be accounted for as off-balance sheet transactions. Total lease expense under noncancelable operating leases was $77.2 million, $91.4 million and $83.6 million for the years ended December 31, 2015, 2014 and 2013, respectively. Contingencies In August 2008, as part of routine audits, the Brazilian taxing authorities disallowed deductions relating to the amortization of certain goodwill recognized in connection with a reorganization of the Company’s Brazilian operations and the related transfer of certain assets to the Company’s Brazilian subsidiaries. The amount of the tax disallowance through December 31, 2015, not including interest and penalties, was approximately 131.5 million Brazilian reais (or approximately $33.2 million). The amount ultimately in dispute will be greater because of interest and penalties. The Company has been advised by its legal and tax advisors that its position with respect to the deductions is allowable under the tax laws of Brazil. The Company is contesting the disallowance and believes that it is not likely that the assessment, interest or penalties will be required to be paid. However, the ultimate outcome will not be determined until the Brazilian tax appeal process is complete, which could take several years. The Company is a party to various other legal claims and actions incidental to its business. The Company believes that none of these claims or actions, either individually or in the aggregate, is material to its business or financial statements as a whole, including its results of operations and financial condition. |
Fair Value of Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company categorizes its assets and liabilities into one of three levels based on the assumptions used in valuing the asset or liability. Estimates of fair value for financial assets and liabilities are based on a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Observable inputs (highest level) reflect market data obtained from independent sources, while unobservable inputs (lowest level) reflect internally developed market assumptions. In accordance with this guidance, fair value measurements are classified under the following hierarchy: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations in which all significant inputs are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Model-derived valuations in which one or more significant inputs are unobservable. The Company categorizes its pension plan assets into one of the three levels of the fair value hierarchy. See Note 8 for a discussion of the valuation methods used to measure the fair value of the Company’s pension plan assets. The Company enters into foreign currency and interest rate swap contracts. The fair values of the Company’s derivative instruments are determined using discounted cash flow valuation models. The significant inputs used in these models are readily available in public markets, or can be derived from observable market transactions, and therefore have been classified as Level 2. Inputs used in these discounted cash flow valuation models for derivative instruments include the applicable exchange rates, forward rates or interest rates. Such models used for option contracts also use implied volatility. See Note 11 for a discussion of the Company’s derivative instruments and hedging activities. The Company’s trading securities consist of foreign-based government bonds. The fair value of the Company’s investments in trading securities classified as Level 2 are priced using nonbinding market prices that are corroborated by observable by market data. Assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 and 2014 are summarized below (in millions):
Cash and cash equivalents, accounts and notes receivable, and accounts payable are valued at their carrying amounts in the Company’s Consolidated Balance Sheets, due to the immediate or short-term maturity of these financial instruments. The carrying amounts of long-term debt under the Company’s 41/2% senior term loan, credit facility and 1.056% senior term loan (Note 7) approximate fair value based on the borrowing rates currently available to the Company for loans with similar terms and average maturities. At December 31, 2014, the estimated fair value of the Company’s 57/8% senior notes (Note 7), based on its listed market value, was $337.6 million, compared to its carrying value of $300.0 million. |
Related Party Transactions |
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Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Rabobank, a financial institution based in the Netherlands, is a 51% owner in the Company’s finance joint ventures, which are located in the United States, Canada, Europe, Brazil, Argentina and Australia. Rabobank is also the principal agent and participant in the Company’s revolving credit facility (Note 7). The majority of the assets of the Company’s finance joint ventures represents finance receivables. The majority of the liabilities represents notes payable and accrued interest. Under the various joint venture agreements, Rabobank or its affiliates provide financing to the joint venture companies, primarily through lines of credit. During both 2015 and 2014, the Company did not make additional investments in its finance joint ventures. During 2013, the Company made a total of approximately $15.5 million of additional investments in its finance joint ventures in Germany and the Netherlands, primarily related to additional capital required as a result of increased retail finance portfolios during 2013. The Company’s finance joint ventures provide retail financing and wholesale financing to its dealers. The terms of the financing arrangements offered to the Company’s dealers are similar to arrangements the finance joint ventures provide to unaffiliated third parties. In addition, the Company transfers, on an ongoing basis, a majority of its wholesale receivables in North America and Europe to its 49% owned U.S., Canadian and European finance joint ventures (Note 4). During 2015, the Company entered into an accounts receivable sales agreement that permits the sale, on an ongoing basis, of a portion of its wholesale receivables in Brazil to its Brazilian finance joint venture. The Company maintains a remarketing agreement with its U.S. finance joint venture (Note 12). In addition, as part of sales incentives provided to end users, the Company may from time to time subsidize interest rates of retail financing provided by its finance joint ventures. The cost of those programs is recognized at the time of sale to the Company’s dealers. Tractors and Farm Equipment Limited (“TAFE”), in which the Company holds a 23.75% interest, manufactures Massey Ferguson-branded equipment primarily in India and also supplies tractors and components to the Company for sale in other markets. Mallika Srinivasan, who is the Chairman and Chief Executive Officer of TAFE, is currently a member of the Company’s Board of Directors. As of December 31, 2015, TAFE owned 12,150,152 shares of the Company’s common stock. The Company and TAFE are parties to an agreement pursuant to which, among other things, TAFE has agreed not to purchase in excess of 12,170,290 shares of the Company’s common stock, subject to certain adjustments, and the Company has agreed to annually nominate a TAFE representative to its Board of Directors. During 2015, 2014 and 2013, the Company purchased approximately $129.2 million, $149.0 million and $90.7 million, respectively, of tractors and components from TAFE. During 2015, 2014 and 2013, the Company sold approximately $2.2 million, $2.1 million and $0.8 million, respectively, of parts to TAFE. The Company received dividends from TAFE of approximately $1.7 million, $1.8 million and $1.6 million during 2015, 2014 and 2013, respectively. During 2015, 2014 and 2013, the Company paid approximately $3.0 million, $3.4 million and $3.3 million, respectively, to PPG Industries, Inc. for painting materials used in the Company’s manufacturing processes. The Company’s Chairman, President and Chief Executive Officer is currently a member of the board of directors of PPG Industries, Inc. |
Segment Reporting |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting | Segment Reporting The Company’s four reportable segments distribute a full range of agricultural equipment and related replacement parts. The Company evaluates segment performance primarily based on income (loss) from operations. Sales for each segment are based on the location of the third-party customer. The Company’s selling, general and administrative expenses and engineering expenses are charged to each segment based on the region and division where the expenses are incurred. As a result, the components of income (loss) from operations for one segment may not be comparable to another segment. Segment results for the years ended December 31, 2015, 2014 and 2013 based on the Company’s current reportable segments are as follows (in millions):
A reconciliation from the segment information to the consolidated balances for income from operations and total assets is set forth below (in millions):
Net sales by customer location for the years ended December 31, 2015, 2014 and 2013 were as follows (in millions):
Net sales by product for the years ended December 31, 2015, 2014 and 2013 were as follows (in millions):
Property, plant and equipment and amortizable intangible assets by country as of December 31, 2015 and 2014 was as follows (in millions):
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Subsequent Event |
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Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On February 2, 2016, the Company acquired Tecno Poultry Equipment S.p.A (“Tecno”) for approximately €53.5 million (or approximately $58.4 million). Tecno, headquartered in Marsango di Campo San Martino, Italy, manufactures and supplies poultry housing and related products, including egg collection equipment and trolley feeding systems. The acquisition was financed through the Company’s credit facility (Note 7). The Company will allocate the purchase price to the assets acquired and liabilities assumed based on preliminary estimates of their fair values as of the acquisition date. The acquired net assets primarily consisted of accounts receivable, inventories, accounts payable and accrued expenses, property, plant and equipment, goodwill and certain identifiable intangible assets. |
Schedule II - Valuation and Qualifying Account |
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Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Valuation and Qualifying Accounts Disclosure | SCHEDULE II AGCO CORPORATION AND SUBSIDIARIES SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS (In millions)
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Operations and Summary of Significant Accounting Policies (Policies) |
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Operations and Summary of Significant Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The Company’s Consolidated Financial Statements represent the consolidation of all wholly-owned companies, majority-owned companies and joint ventures in which the Company has been determined to be the primary beneficiary. The Company consolidates a variable interest entity (“VIE”) if the Company determines it is the primary beneficiary. The primary beneficiary of a VIE is the party that has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits that potentially could be significant to the VIE. The Company also consolidates all entities that are not considered VIEs if it is determined that the Company has a controlling voting interest to direct the activities that most significantly impact the joint venture or entity. The Company records investments in all other affiliate companies using the equity method of accounting when it has significant influence. Other investments, including those representing an ownership interest of less than 20%, are recorded at cost. All significant intercompany balances and transactions have been eliminated in the Consolidated Financial Statements. Certain prior period amounts have been reclassified to conform to the current period presentation. |
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Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The estimates made by management primarily relate to accounts and notes receivable, inventories, deferred income tax valuation allowances, uncertain tax positions, goodwill and other identifiable intangible assets, and certain accrued liabilities, principally relating to reserves for volume discounts and sales incentives, warranty obligations, product liability and workers’ compensation obligations, and pensions and postretirement benefits. |
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Revenue Recognition | Revenue Recognition Sales of equipment and replacement parts are recorded by the Company when title and risks of ownership have been transferred to an independent dealer, distributor or other customer. In certain countries, sales of certain grain storage and protein production systems in which the Company is responsible for construction or installation and which may be contingent upon customer acceptance, are recorded at the completion of the project. Payment terms vary by market and product, with fixed payment schedules on all sales. The terms of sale generally require that a purchase order or order confirmation accompany all shipments. Title generally passes to the dealer or distributor upon shipment or specified delivery, and the risk of loss upon damage, theft or destruction of the equipment is the responsibility of the dealer, distributor or third-party carrier at the point of the stated shipping or delivery term. In certain foreign countries, the Company retains a form of title to goods delivered to dealers until the dealer makes payment so that the Company can recover the goods in the event of customer default on payment. This occurs as the laws of some foreign countries do not provide for a seller’s retention of a security interest in goods in the same manner as established in the United States Uniform Commercial Code. The only right the Company retains with respect to the title is that enabling recovery of the goods in the event of customer default on payment. The dealer or distributor may not return equipment or replacement parts while its contract with the Company is in force. Replacement parts may be returned only under promotional and annual return programs. Provisions for returns under these programs are made at the time of sale based on the terms of the program and historical returns experience. The Company may provide certain sales incentives to dealers and distributors. Provisions for sales incentives are made at the time of sale for existing incentive programs. These provisions are revised in the event of subsequent modification to the incentive program. See “Accounts and Notes Receivable” for further discussion. In the United States and Canada, amounts due from sales to dealers are immediately due upon a retail sale of the underlying equipment by the dealer with the exception of sales of grain storage and protein production systems. If not previously paid by the dealer in the United States and Canada, installment payments are required generally beginning after the interest-free period with the remaining outstanding equipment balance generally due within 12 months after shipment or delivery. Some specified programs in the United States and Canada may allow for interest-free periods and due dates of up to 24 months for certain products. Interest generally is charged on the outstanding balance six to 12 months after shipment or delivery. Sales terms of some highly seasonal products provide for payment and due dates based on a specified date during the year regardless of the shipment date. Equipment sold to dealers in the United States and Canada is paid in full on average within 12 months of shipment. Sales of replacement parts generally are payable within 30 days of shipment, with terms for some larger, seasonal stock orders generally requiring payment within six months of shipment. Sales of grain storage and protein production systems generally are payable within 30 days of shipment. In other international markets, equipment sales generally are payable in full within 30 to 180 days of shipment or delivery. Payment terms for some highly seasonal products have a specified due date during the year regardless of the shipment or delivery date. Sales of replacement parts generally are payable within 30 to 90 days of shipment, with terms for some larger, seasonal stock orders generally payable within six months of shipment. In certain markets, particularly in North America, there is a time lag, which varies based on the timing and level of retail demand, between the date the Company records a sale and when the dealer sells the equipment to a retail customer. |
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Foreign Currency Transaction | Foreign Currency Translation The financial statements of the Company’s foreign subsidiaries are translated into United States currency in accordance with Accounting Standards Codification (“ASC”) 830, “Foreign Currency Matters.” Assets and liabilities are translated to United States dollars at period-end exchange rates. Income and expense items are translated at average rates of exchange prevailing during the period. Translation adjustments are included in “Accumulated other comprehensive loss” in stockholders’ equity within the Company’s Consolidated Balance Sheets. Gains and losses, which result from foreign currency transactions, are included in the accompanying Consolidated Statements of Operations. |
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Cash and Cash Equivalents | Cash and Cash Equivalents Cash at December 31, 2015 and 2014 of $344.6 million and $215.3 million, respectively, consisted primarily of cash on hand and bank deposits. The Company considers all investments with an original maturity of three months or less to be cash equivalents. Cash equivalents at December 31, 2015 and 2014 of $82.1 million and $148.4 million, respectively, consisted primarily of money market deposits, certificates of deposits and overnight investments. |
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Accounts and Notes Receivable | Accounts and Notes Receivable Accounts and notes receivable arise from the sale of equipment and replacement parts to independent dealers, distributors or other customers. Payments due under the Company’s terms of sale generally range from one to 12 months and are not contingent upon the sale of the equipment by the dealer or distributor to a retail customer. Under normal circumstances, payment terms are not extended and equipment may not be returned. In certain regions, with respect to most equipment sales, including the United States and Canada, the Company is obligated to repurchase equipment and replacement parts upon cancellation of a dealer or distributor contract. These obligations are required by national, state or provincial laws and require the Company to repurchase a dealer or distributor’s unsold inventory, including inventories for which the receivable already has been paid. The Company offers various sales terms with respect to its products. For sales in most markets outside of the United States and Canada, the Company generally does not charge interest on outstanding receivables with its dealers and distributors. For sales to certain dealers or distributors in the United States and Canada, interest is charged at or above prime lending rates on outstanding receivable balances after interest-free periods. These interest-free periods vary by product and generally range from one to 12 months as previously discussed. In limited circumstances, the Company provides sales terms, and in some cases, interest-free periods that are longer than 12 months for certain products. These are typically specified programs, predominantly in the United States and Canada, in which interest is charged after a period of up to 24 months depending on the year of the sale and the dealer or distributor’s ordering or sales volume during the preceding year. Actual interest-free periods are shorter than described above because the equipment receivable from dealers or distributors in some countries, such as in the United States and Canada, is generally due immediately upon sale of the equipment to a retail customer. Receivables can also be paid prior to terms specified in sales agreements. Under normal circumstances, interest is not forgiven and interest-free periods are not extended. The following summarizes by geographic region, as a percentage of our consolidated net sales, amounts with maximum interest-free periods as presented below (in millions):
The Company has an agreement to permit transferring, on an ongoing basis a majority all of its wholesale interest-bearing and non-interest bearing accounts receivable in North America and Europe to its U.S., Canadian and European finance joint ventures. During 2015, the Company entered into an agreement to permit transferring, on an ongoing basis, a portion of its accounts receivable in Brazil to its Brazilian finance joint venture. Qualified dealers may obtain additional financing through the Company’s U.S., Canadian, European and Brazilian finance joint ventures at the joint ventures’ discretion. The Company provides various volume bonus and sales incentive programs with respect to its products. These sales incentive programs include reductions in invoice prices, reductions in retail financing rates, dealer commissions and dealer incentive allowances. In most cases, incentive programs are established and communicated to the Company’s dealers on a quarterly basis. The incentives are paid either at the time of invoice (through a reduction of invoice price), at the time of the settlement of the receivable, at the time of retail financing, at the time of warranty registration, or at a subsequent time based on dealer purchases. The incentive programs are product-line specific and generally do not vary by dealer. The cost of sales incentives associated with dealer commissions and dealer incentive allowances is estimated based upon the terms of the programs and historical experience, is based on a percentage of the sales price and is recorded at the later of (a) the date at which the related revenue is recognized, or (b) the date at which the sales incentive is offered. The related provisions and accruals are made on a product or product-line basis and are monitored for adequacy and revised at least quarterly in the event of subsequent modifications to the programs. Volume discounts are estimated and recognized based on historical experience, and related reserves are monitored and adjusted based on actual dealer purchases and the dealer’s progress towards achieving specified cumulative target levels. The Company records the cost of interest subsidy payments, which is a reduction in the retail financing rates, at the later of (a) the date at which the related revenue is recognized, or (b) the date at which the sales incentive is offered. Estimates of these incentives are based on the terms of the programs and historical experience. All incentive programs are recorded and presented as a reduction of revenue, due to the fact that the Company does not receive an identifiable benefit in exchange for the consideration provided. Reserves for incentive programs that will be paid either through the reduction of future invoices or through credit memos are recorded as “accounts receivable allowances” within the Company’s Consolidated Balance Sheets. Reserves for incentive programs that will be paid in cash, as is the case with most of the Company’s volume discount programs, as well as sales with incentives associated with accounts receivable sold to its U.S. and Canadian finance joint ventures, are recorded within “Accrued expenses” within the Company’s Consolidated Balance Sheets. Accounts and notes receivable are shown net of allowances for sales incentive discounts available to dealers and for doubtful accounts. Cash flows related to the collection of receivables are reported within “Cash flows from operating activities” within the Company’s Consolidated Statements of Cash Flows. Accounts and notes receivable allowances at December 31, 2015 and 2014 were as follows (in millions):
The Company transfers certain accounts receivable under its accounts receivable sales agreements with its finance joint ventures (Note 4). The Company records such transfers as sales of accounts receivable when it is considered to have surrendered control of such receivables under the provisions of Accounting Standards Update (“ASU”) 2009-16, “Transfers and Servicing (Topic 860): Accounting for Transfers of Financial Assets.” Cash payments are made to the Company’s U.S. and Canadian finance joint ventures for sales incentive discounts provided to dealers related to outstanding accounts receivables sold. The balances of such sales discount reserves that are recorded within “Accrued expenses” as of December 31, 2015 and 2014 were approximately $229.5 million and $236.5 million, respectively. |
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Inventories | Inventories Inventories are valued at the lower of cost or market using the first-in, first-out method. Market is current replacement cost (by purchase or by reproduction, dependent on the type of inventory). In cases where market exceeds net realizable value (i.e., estimated selling price less reasonably predictable costs of completion and disposal), inventories are stated at net realizable value. Market is not considered to be less than net realizable value reduced by an allowance for an approximately normal profit margin. At December 31, 2015 and 2014, the Company had recorded $134.6 million and $126.5 million, respectively, as an adjustment for surplus and obsolete inventories. These adjustments are reflected within “Inventories, net” within the Company’s Consolidated Balance Sheets. Inventories, net at December 31, 2015 and 2014 were as follows (in millions):
Cash flows related to the sale of inventories are reported within “Cash flows from operating activities” within the Company’s Consolidated Statements of Cash Flows. |
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Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are recorded at cost, less accumulated depreciation and amortization. Depreciation is provided on a straight-line basis over the estimated useful lives of ten to 40 years for buildings and improvements, three to 15 years for machinery and equipment and three to ten years for furniture and fixtures. Expenditures for maintenance and repairs are charged to expense as incurred. |
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Goodwill, Other Intangible Assets and Long-Lived Assets | Goodwill, Other Intangible Assets and Long-Lived Assets The Company tests goodwill for impairment, at the reporting unit level, annually and when events or circumstances indicate that fair value of a reporting unit may be below its carrying value. A reporting unit is an operating segment or one level below an operating segment, for example, a component. The Company combines and aggregates two or more components of an operating segment as a single reporting unit if the components have similar economic characteristics. The Company’s reportable segments are not its reporting units. Goodwill is evaluated annually as of October 1 for impairment using a qualitative assessment or a quantitative two-step assessment. If the Company elects to perform a qualitative assessment and determines the fair value of its reporting units more likely than not exceed their carrying value, no further evaluation is necessary. For reporting units where the Company performs a two-step quantitative assessment, the first step requires the Company to compare the fair value of each reporting unit, which is determined based on a combination of a discounted cash flow valuation approach and a market multiple valuation approach, to its respective carrying value, including goodwill. If the fair value of the reporting unit exceeds its carrying value, the goodwill is not considered impaired. If the carrying value is higher than the fair value of the reporting unit, the second step of the quantitative process is required to measure the amount of impairment, if any. The second step of the quantitative assessment results in a calculation of the implied fair value of the reporting unit’s goodwill, which is determined as the excess of the fair value of a reporting unit over the fair values assigned to its assets and liabilities. If the implied fair value of goodwill is less than the carrying value of the reporting unit’s goodwill, the difference is recognized as an impairment loss. |
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Amortization of certain Intangible Assets | The Company reviews its long-lived assets, which include intangible assets subject to amortization, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The evaluation for recoverability is performed at a level where independent cash flows may be attributed to either an asset or asset group. If the Company determines that the carrying amount of an asset or asset group is not recoverable based on the expected undiscounted future cash flows of the asset or asset group, an impairment loss is recorded equal to the excess of the carrying amounts over the estimated fair value of the long-lived assets. Estimates of future cash flows are based on many factors, including current operating results, expected market trends and competitive influences. The Company also evaluates the amortization periods assigned to its intangible assets to determine whether events or changes in circumstances warrant revised estimates of useful lives. Assets to be disposed of by sale are reported at the lower of the carrying amount or fair value, less estimated costs to sell. The results of the Company’s goodwill and long-lived assets impairment analyses conducted as of October 1, 2015, 2014 and 2013 indicated that no reduction in the carrying amount of the Company’s goodwill and long-lived assets was required. The Company’s accumulated goodwill impairment is approximately $180.5 million, which is comprised of approximately $9.1 million recorded in 2012 related to the Chinese harvesting reporting unit and approximately $171.4 million recorded in 2006 related to the Company’s former sprayer reporting unit. The Chinese harvesting business operates within the Asia/Pacific geographical reportable segment. The former sprayer reporting unit operates within the North American geographical reportable segment. Changes in the carrying amount of goodwill during the years ended December 31, 2015, 2014 and 2013 are summarized as follows (in millions):
During 2013, the Company reduced goodwill for financial reporting purposes by approximately $8.0 million related to the realization of tax benefits associated with the excess tax basis deductible goodwill resulting from the Company’s acquisition of Valtra. The Company amortizes certain acquired identifiable intangible assets primarily on a straight-line basis over their estimated useful lives, which range from five to 50 years. |
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Warranty Reserves | The Company’s agricultural equipment products generally are under warranty against defects in materials and workmanship for a period of one to four years. The Company accrues for future warranty costs at the time of sale based on historical warranty experience. Approximately $35.1 million and $38.9 million of warranty reserves are included in “Other noncurrent liabilities” in the Company’s Consolidated Balance Sheets as of December 31, 2015 and 2014, respectively. |
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Insurance Reserves | Insurance Reserves Under the Company’s insurance programs, coverage is obtained for significant liability limits as well as those risks required to be insured by law or contract. It is the policy of the Company to self-insure a portion of certain expected losses primarily related to workers’ compensation and comprehensive general liability, product and vehicle liability. Provisions for losses expected under these programs are recorded based on the Company’s estimates of the aggregate liabilities for the claims incurred. |
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Research and Development Expenses | Research and Development Expenses Research and development expenses are expensed as incurred and are included in engineering expenses in the Company’s Consolidated Statements of Operations. |
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Advertising Costs | Advertising Costs The Company expenses all advertising costs as incurred. Cooperative advertising costs normally are expensed at the time the revenue is earned. |
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Shipping and Handling Expenses | Shipping and Handling Expenses All shipping and handling fees charged to customers are included as a component of net sales. Shipping and handling costs are included as a part of cost of goods sold, with the exception of certain handling costs included in selling, general and administrative expenses in the amount of $26.6 million, $29.2 million and $29.3 million for the years ended December 31, 2015, 2014 and 2013, respectively. |
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Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Refer to Note 6 for additional information regarding the Company’s income taxes. |
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Net Income Per Common Share | Net Income Per Common Share Basic income per common share is computed by dividing net income by the weighted average number of common shares outstanding during each period. Diluted income per common share assumes the exercise of outstanding stock-settled stock appreciation rights (“SSARs”) and the vesting of performance share awards and restricted stock units using the treasury stock method when the effects of such assumptions are dilutive. During 2014 and 2013, the appreciation of the excess conversion value of the Company’s former 11/4% contingently convertible senior subordinated notes was included in the diluted net income per common share using the treasury stock method when the impact of such assumption was dilutive. |
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Comprehensive Income (Loss) | Comprehensive Income (Loss) The Company reports comprehensive income (loss), defined as the total of net income (loss) and all other non-owner changes in equity, and the components thereof in its Consolidated Statements of Stockholders’ Equity and Consolidated Statements of Comprehensive Income. |
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Derivatives | Derivatives The Company uses foreign currency contracts to hedge the foreign currency exposure of certain receivables and payables. The contracts are for periods consistent with the exposure being hedged and generally have maturities of one year or less. These contracts are classified as non-designated derivative instruments. The Company also enters into foreign currency contracts designated as cash flow hedges of expected sales. The Company’s foreign currency contracts mitigate risk due to exchange rate fluctuations because gains and losses on these contracts generally offset losses and gains on the exposure being hedged. The notional amounts of the foreign currency contracts do not represent amounts exchanged by the parties and, therefore, are not a measure of the Company’s risk. The amounts exchanged are calculated on the basis of the notional amounts and other terms of the contracts. The credit and market risks under these contracts are not considered to be significant. The Company’s interest expense is, in part, sensitive to the general level of interest rates, and the Company manages its exposure to interest rate risk through the mix of floating rate and fixed rate debt. From time to time, the Company enters into interest rate swap agreements in order to manage the Company’s exposure to interest rate fluctuations. The Company uses non-derivative and, periodically, derivative instruments to hedge a portion of the Company’s net investment in foreign operations against adverse movements in exchange rates. The Company’s hedging policy prohibits it from entering into any foreign currency contracts for speculative trading purposes. Refer to Note 11 for additional information regarding the Company’s derivative instruments and hedging activities. |
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Recent Accounting Pronouncements | Recent Accounting Pronouncements In November 2015, the Financial Accounting Standards Board (“FASB”) issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes” (“ASU 2015-17”). ASU 2015-17 amends existing guidance to require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The standard does not amend the existing requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount. ASU 2015-17 is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The standard may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. Early adoption is permitted as of the beginning of an interim or annual reporting period. The Company elected to early adopt this standard and has applied the requirements of ASU 2015-17 retrospectively to all periods presented. In the Consolidated Balance Sheet as of December 31, 2014, the Company reclassified approximately $217.2 million as a decrease to current deferred tax assets, thereby increasing noncurrent deferred tax assets by approximately $190.1 million and decreasing noncurrent deferred tax liabilities by approximately $27.1 million. In September 2015, the FASB issued ASU 2015-16, “Simplifying the Accounting for Measurement-Period Adjustments” (“ASU 2015-16”). ASU 2015-16 amends existing guidance to require that an acquirer in a business combination recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. In addition, an entity is required to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in earnings by line item that would have been recorded in previous reporting periods if the adjustments to the provisional amounts had been recognized as of the acquisition date. Prior period information is no longer to be revised. The standard is effective prospectively for adjustments to provisional amounts that occur after fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The Company expects that the adoption of ASU 2015-16 on January 1, 2016 will not have a material impact on its results of operations and financial condition. In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory” (“ASU 2015-11”), which changes the measurement principle for inventory from the “lower of cost or market” to “lower of cost and net realizable value.” The new principle is part of the FASB’s simplification initiative and applies to entities that measure inventory using a method other than the last-in, first-out (“LIFO”) or the retail inventory methods. Entities using the first-in, first-out (“FIFO”) or average cost methods of measuring inventory no longer will need to consider replacement cost or net realizable value less an approximate normal profit margin in the subsequent measurement of inventory. Net realizable value is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The standard does not amend or change the determination of the cost of inventory. The standard is effective prospectively for inventory measurements for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The Company expects that the adoption of ASU 2015-11 on January 1, 2017 will not have a material impact on its results of operations and financial condition. In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”). ASU 2015-03 amends existing guidance to require the presentation of debt issuance costs in the balance sheet as a direct deduction from the carrying amount of the related debt liability instead of a deferred charge. Given the absence of authoritative guidance within ASU 2015-03, in August 2015 the FASB issued ASU 2015-15, “Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements” (“ASU 2015-15”), which clarifies that the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. ASU 2015-03 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The Company expects that the adoption of ASU 2015-03 on January 1, 2016 will not have a material impact on its results of operations and financial condition. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”), which supersedes existing revenue recognition guidance under current U.S. GAAP. ASU 2014-09 outlines a comprehensive, single revenue recognition model that provides a five-step analysis in determining when and how revenue is recognized. The new model will require revenue recognition to depict the transfer of promised goods or services to customers at an amount that reflects the consideration expected to be received in exchange for those goods or services. Additional disclosures also will be required to enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. ASU 2014-09 is effective for reporting periods beginning after December 15, 2016 using either a full retrospective or a modified retrospective approach. Early adoption is not permitted. On July 9, 2015, the FASB delayed the effective date of ASU 2014-09 by one year or to reporting periods beginning after December 15, 2017. Early adoption is permitted, but not any earlier than the original effective date. The Company is currently evaluating the impact of adopting this standard on the Company’s results of operations and financial condition. |
Operations and Summary of Significant Accounting Policies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Operations and Summary of Significant Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable Outstanding as a Percent of Net Sales | The following summarizes by geographic region, as a percentage of our consolidated net sales, amounts with maximum interest-free periods as presented below (in millions):
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Trade Allowances and Sales Incentive Discounts | Accounts and notes receivable allowances at December 31, 2015 and 2014 were as follows (in millions):
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Schedule of Inventory, Current | Inventories, net at December 31, 2015 and 2014 were as follows (in millions):
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Property, Plant and Equipment | Property, plant and equipment, net at December 31, 2015 and 2014 consisted of the following (in millions):
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Schedule of Goodwill | Changes in the carrying amount of goodwill during the years ended December 31, 2015, 2014 and 2013 are summarized as follows (in millions):
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Schedule of Acquired Finite-Lived Intangible Assets by Major Class | Changes in the carrying amount of acquired intangible assets during 2015 and 2014 are summarized as follows (in millions):
The acquired intangible assets have a weighted average useful life as follows:
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Schedule of Indefinite-lived Intangible Assets by Major Class |
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Schedule of Accrued Liabilities | Accrued expenses at December 31, 2015 and 2014 consisted of the following (in millions):
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Schedule of Product Warranty Liability | The warranty reserve activity for the years ended December 31, 2015, 2014 and 2013 consisted of the following (in millions):
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Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | Stock compensation expense (credit) was recorded as follows (in millions). Refer to Note 10 for additional information regarding the Company’s stock incentive plans during 2015, 2014 and 2013:
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Schedule of Components of Interest Expense, Net | Interest expense, net for the years ended December 31, 2015, 2014 and 2013 consisted of the following (in millions):
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Schedule of Earnings Per Share, Basic and Diluted | 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 during the years ended December 31, 2015, 2014 and 2013 is as follows (in millions, except per share data):
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Schedule of Comprehensive Income (Loss) | The components of other comprehensive loss and the related tax effects for the years ended December 31, 2015, 2014 and 2013 are as follows (in millions):
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Acquisitions (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Acquired Other Identifiable Intangible Assets | The acquired identifiable intangible assets of Intersystems as of the date of the acquisition are summarized in the following table (in millions):
The acquired identifiable intangible assets of Farmer Automatic as of the date of the acquisition are summarized in the following table (in millions):
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Investments in Affiliates (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in and Advances to Affiliates | Investments in affiliates as of December 31, 2015 and 2014 were as follows (in millions):
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Schedule of Equity Method Investments | Summarized combined financial information of the Company’s finance joint ventures as of December 31, 2015 and 2014 and for the years ended December 31, 2015, 2014 and 2013 were as follows (in millions):
The Company’s equity in net earnings of affiliates for the years ended December 31, 2015, 2014 and 2013 were as follows (in millions):
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Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Income before Income Tax, Domestic and Foreign | The sources of income (loss) before income taxes and equity in net earnings of affiliates were as follows for the years ended December 31, 2015, 2014 and 2013 (in millions):
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Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes by location of the taxing jurisdiction for the years ended December 31, 2015, 2014 and 2013 consisted of the following (in millions):
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Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of income taxes computed at the United States federal statutory income tax rate (35%) to the provision for income taxes reflected in the Company’s Consolidated Statements of Operations for the years ended December 31, 2015, 2014 and 2013 is as follows (in millions):
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Schedule of Deferred Tax Assets and Liabilities | The significant components of the deferred tax assets and liabilities at December 31, 2015 and 2014 were as follows (in millions):
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Summary of Income Tax Contingencies | A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits as of and during the years ended December 31, 2015 and 2014 is as follows (in millions):
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Indebtedness (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Indebtedness | Indebtedness consisted of the following at December 31, 2015 and 2014 (in millions):
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Maturities of Long-term Debt | At December 31, 2015, the aggregate scheduled maturities of long-term debt, excluding the current portion of long-term debt, are as follows (in millions):
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Interest Expense Recognized on Convertible Senior Subordinated Notes | The following table sets forth the interest expense recognized for the year ended December 31, 2014 relating to the notes’ contractual interest coupon and the interest expense recognized for the year ended December 31, 2013 relating to both the notes’ contractual interest coupon as well as the amortization of the discount on the liability component for the Company’s former 11/4% convertible senior subordinated notes (in millions):
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Employee Benefit Plans (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Defined Benefit Plans | The following tables set forth reconciliations of the changes in benefit obligation, plan assets and funded status as of December 31, 2015 and 2014 (in millions):
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Schedule of Accumulated Other Comprehensive Income (Loss) | 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 years ended December 31, 2015 and 2014 (in millions):
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Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | Changing the assumed health care cost trend rates by one percentage point each year and holding all other assumptions constant would have had the following effect to service and interest cost for 2015 and the accumulated postretirement benefit obligation for both the U.S. and Brazilian postretirement plans at December 31, 2015 (in millions):
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Pension Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Pension And Postretirement Cost | Net annual pension costs for the years ended December 31, 2015, 2014 and 2013 for the Company’s defined benefit pension plans and ENPP are set forth below (in millions):
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Assumptions Used | The weighted average assumptions used to determine the net annual pension costs for the Company’s defined benefit pension plans and ENPP for the years ended December 31, 2015, 2014 and 2013 are as follows:
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The weighted average assumptions used to determine the benefit obligation for the Company’s defined benefit pension plans and ENPP as of December 31, 2015 and 2014 are as follows:
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Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the activity in accumulated other comprehensive loss related to the Company’s ENPP and defined pension and postretirement benefit plans during the years ended December 31, 2015 and 2014 (in millions):
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Expected Benefit Payments | At December 31, 2015, the aggregate expected benefit payments for the Company’s defined benefit pension plans and ENPP are as follows (in millions):
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Allocation of Plan Assets | The fair value of the Company’s pension assets as of December 31, 2015 is as follows (in millions):
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The fair value of the Company’s pension assets as of December 31, 2014 is as follows (in millions):
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Reconciliation of Significant Unobservable Inputs, Changes in Plan Assets | The following is a reconciliation of Level 3 assets as of December 31, 2015 (in millions):
The following is a reconciliation of Level 3 assets as of December 31, 2014 (in millions):
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U.S. Based Pension Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of Plan Assets | The weighted average asset allocation of the Company’s U.S. pension benefit plans as of December 31, 2015 and 2014 are as follows:
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Non-U.S. Pension Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of Plan Assets | The weighted average asset allocation of the Company’s non-U.S. pension benefit plans as of December 31, 2015 and 2014 are as follows:
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Postretirement Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Pension And Postretirement Cost | Net annual postretirement benefit costs for the years ended December 31, 2015, 2014 and 2013 are set forth below (in millions, except percentages):
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Expected Benefit Payments | At December 31, 2015, the aggregate expected benefit payments for the Company’s U.S. and Brazilian postretirement benefit plans are as follows (in millions):
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Stockholders' Equity (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | 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 years ended December 31, 2015 and 2014 (in millions):
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Schedule of reclassifications out of AOCI | The following table sets forth reclassification adjustments out of accumulated other comprehensive loss by component attributed to AGCO Corporation and its subsidiaries for the years ended December 31, 2015 and 2014 (in millions):
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Stock Incentive Plan (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period, weighted average grant date fair value | The weighted average grant-date fair value of performance awards granted under the 2006 Plan during 2015, 2014 and 2013 was as follows:
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Performance Award Transactions | Performance award transactions during 2015 were as follows and are presented as if the Company were to achieve its maximum levels of performance under the plan:
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Share-based compensation arrangement by share-based payment award, equity instruments other than options, earned and issued | Based on the level of performance achieved as of December 31, 2014, the following shares were earned under the 2012-2014 performance period and issued in the subsequent year, net of shares withheld for taxes related to the earned award:
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Restricted Stock Unit Award Transactions | RSU transactions during the year ended December 31, 2015 were as follows:
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Weighted Average Grant-Date Fair Value Of SSARS And Assumptions Under Black-Scholes Option 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 years ended December 31, 2015, 2014 and 2013:
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SSAR Activity | SSAR transactions during the year ended December 31, 2015 were as follows:
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Schedule Of SSAR Exercise Price Range, Number Of Shares, Weighted Average Exercise Price And Remaining Contractual Lives | 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 December 31, 2015:
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Derivative Instruments and Hedging Activities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedges, Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Accumulated Other Comprehensive Loss Related To Derivatives | The following table summarizes the activity in accumulated other comprehensive loss related to the derivatives held by the Company during the years ended December 31, 2015, 2014 and 2013 (in millions):
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Fair Value Of Derivative Instruments | The table below sets forth the fair value of derivative instruments as of December 31, 2015 (in millions):
The table below sets forth the fair value of derivative instruments as of December 31, 2014 (in millions):
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Commitments and Contingencies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of future payments required for significant commitments | The future payments required under the Company’s significant commitments, excluding indebtedness, as of December 31, 2015 are as follows (in millions):
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Schedule of guarantor obligations |
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Fair Value of Financial Instruments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of assets and liabilities measured at fair value | Assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 and 2014 are summarized below (in millions):
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Segment Reporting (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales Information By Reportable Segments | Segment results for the years ended December 31, 2015, 2014 and 2013 based on the Company’s current reportable segments are as follows (in millions):
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Income From Operations And Total Assets | 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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Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area | Net sales by customer location for the years ended December 31, 2015, 2014 and 2013 were as follows (in millions):
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Revenue from External Customers by Products and Services | Net sales by product for the years ended December 31, 2015, 2014 and 2013 were as follows (in millions):
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Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country | Property, plant and equipment and amortizable intangible assets by country as of December 31, 2015 and 2014 was as follows (in millions):
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Operations and Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Operations and Summary of Significant Accounting Policies [Abstract] | ||
Inventory Valuation Reserves | $ 134.6 | $ 126.5 |
Inventory, Net [Abstract] | ||
Finished goods | 523.1 | 616.6 |
Repair and replacement parts | 515.4 | 536.4 |
Work in process | 97.5 | 130.5 |
Raw materials | 287.4 | 467.2 |
Inventories, net | $ 1,423.4 | $ 1,750.7 |
Operations and Summary of Significant Accounting Policies - Property Plant and Equipment (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Property, Plant and Equipment [Abstract] | ||
Gross property, plant and equipment | $ 2,829.9 | $ 2,969.5 |
Accumulated depreciation and amortization | (1,482.8) | (1,439.1) |
Property, plant and equipment, net | 1,347.1 | 1,530.4 |
Land | ||
Property, Plant and Equipment [Abstract] | ||
Gross property, plant and equipment | 105.7 | 113.6 |
Buildings and Improvements | ||
Property, Plant and Equipment [Abstract] | ||
Gross property, plant and equipment | 637.4 | 688.4 |
Machinery and Equipment | ||
Property, Plant and Equipment [Abstract] | ||
Gross property, plant and equipment | 1,966.8 | 2,039.9 |
Furniture and Fixtures | ||
Property, Plant and Equipment [Abstract] | ||
Gross property, plant and equipment | $ 120.0 | $ 127.6 |
Minimum | Buildings and Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 10 years | |
Minimum | Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Minimum | Furniture and Fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Maximum | Buildings and Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 40 years | |
Maximum | Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 15 years | |
Maximum | Furniture and Fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 10 years |
Operations and Summary of Significant Accounting Policies - Goodwill and Other Intangible Assets (Details) $ in Millions |
12 Months Ended | ||||
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Dec. 31, 2015
USD ($)
country
|
Dec. 31, 2014
USD ($)
|
Dec. 31, 2013
USD ($)
|
Dec. 31, 2012
USD ($)
|
Dec. 31, 2006
USD ($)
|
|
Goodwill [Line Items] | |||||
Goodwill, Impaired, Accumulated Impairment Loss | $ 180.5 | ||||
Impairment charge | $ (9.1) | $ (171.4) | |||
Goodwill [Roll Forward] | |||||
Goodwill Beginning of Period | 1,192.8 | $ 1,178.7 | $ 1,192.4 | ||
Goodwill acquired | 22.2 | 89.6 | 7.3 | ||
Goodwill Adjustments Related To Income Taxes | (8.0) | ||||
Goodwill, Foreign Currency Translation | (100.5) | (75.5) | (13.0) | ||
Goodwill End of Period | 1,114.5 | 1,192.8 | 1,178.7 | 1,192.4 | |
Amortization of intangibles | 42.7 | 41.0 | 47.8 | ||
Future Amortization Expense | |||||
2016 | 42.1 | ||||
2017 | 41.9 | ||||
2018 | 41.9 | ||||
2019 | 41.9 | ||||
2020 | $ 41.3 | ||||
Number of countries where products sold (over) | country | 140 | ||||
Finite-lived Intangible Assets [Roll Forward] | |||||
Finite-Lived Intangible Assets, Beginning Of Period | $ 741.0 | 725.3 | |||
Intangible assets acquired | 9.6 | 46.3 | |||
Settlement of purchase consideration | (4.8) | ||||
Finite-Lived Intangible Assets, Foreign currency translation | (34.5) | (25.8) | |||
Finite-Lived Intangible Assets, End Of Period | 716.1 | 741.0 | 725.3 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | 293.7 | 276.2 | 253.4 | ||
Finite Lived Intangible Assets, Accumulated Amortization, Foreign Currency Translation | (25.2) | (18.2) | |||
North America | |||||
Goodwill [Roll Forward] | |||||
Goodwill Beginning of Period | 513.6 | 424.0 | 416.7 | ||
Goodwill acquired | 5.1 | 89.6 | 7.3 | ||
Goodwill Adjustments Related To Income Taxes | 0.0 | ||||
Goodwill, Foreign Currency Translation | 0.0 | 0.0 | 0.0 | ||
Goodwill End of Period | 518.7 | 513.6 | 424.0 | 416.7 | |
South America | |||||
Goodwill [Roll Forward] | |||||
Goodwill Beginning of Period | 169.7 | 190.7 | 219.3 | ||
Goodwill acquired | 0.0 | 0.0 | 0.0 | ||
Goodwill Adjustments Related To Income Taxes | 0.0 | ||||
Goodwill, Foreign Currency Translation | (55.3) | (21.0) | (28.6) | ||
Goodwill End of Period | 114.4 | 169.7 | 190.7 | 219.3 | |
Europe/ Africa/ Middle East | |||||
Goodwill [Roll Forward] | |||||
Goodwill Beginning of Period | 454.6 | 506.6 | 498.3 | ||
Goodwill acquired | 9.3 | 0.0 | 0.0 | ||
Goodwill Adjustments Related To Income Taxes | (8.0) | ||||
Goodwill, Foreign Currency Translation | (38.7) | (52.0) | 16.3 | ||
Goodwill End of Period | 425.2 | 454.6 | 506.6 | 498.3 | |
Asia/ Pacific | |||||
Goodwill [Roll Forward] | |||||
Goodwill Beginning of Period | 54.9 | 57.4 | 58.1 | ||
Goodwill acquired | 7.8 | 0.0 | 0.0 | ||
Goodwill Adjustments Related To Income Taxes | 0.0 | ||||
Goodwill, Foreign Currency Translation | (6.5) | (2.5) | (0.7) | ||
Goodwill End of Period | $ 56.2 | 54.9 | 57.4 | $ 58.1 | |
Patents and Technology | |||||
Goodwill [Roll Forward] | |||||
Weighted average useful life | 13 years | ||||
Amortization of intangibles | $ 3.9 | 3.2 | |||
Finite-lived Intangible Assets [Roll Forward] | |||||
Finite-Lived Intangible Assets, Beginning Of Period | 94.0 | 89.1 | |||
Intangible assets acquired | 3.6 | 11.3 | |||
Settlement of purchase consideration | 0.0 | ||||
Finite-Lived Intangible Assets, Foreign currency translation | (5.1) | (6.4) | |||
Finite-Lived Intangible Assets, End Of Period | 92.5 | 94.0 | 89.1 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | 55.1 | 56.1 | 59.0 | ||
Finite Lived Intangible Assets, Accumulated Amortization, Foreign Currency Translation | $ (4.9) | (6.1) | |||
Customer relationships | |||||
Goodwill [Roll Forward] | |||||
Weighted average useful life | 14 years | ||||
Amortization of intangibles | $ 32.0 | 31.4 | |||
Finite-lived Intangible Assets [Roll Forward] | |||||
Finite-Lived Intangible Assets, Beginning Of Period | 513.8 | 502.7 | |||
Intangible assets acquired | 4.1 | 28.0 | |||
Settlement of purchase consideration | 0.0 | ||||
Finite-Lived Intangible Assets, Foreign currency translation | (25.6) | (16.9) | |||
Finite-Lived Intangible Assets, End Of Period | 492.3 | 513.8 | 502.7 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | 193.8 | 180.8 | 160.7 | ||
Finite Lived Intangible Assets, Accumulated Amortization, Foreign Currency Translation | $ (19.0) | (11.3) | |||
Trademarks and Trade Names | |||||
Goodwill [Roll Forward] | |||||
Weighted average useful life | 20 years | ||||
Amortization of intangibles | $ 6.6 | 6.2 | |||
Finite-lived Intangible Assets [Roll Forward] | |||||
Finite-Lived Intangible Assets, Beginning Of Period | 123.5 | 118.6 | |||
Intangible assets acquired | 1.9 | 7.0 | |||
Settlement of purchase consideration | 0.0 | ||||
Finite-Lived Intangible Assets, Foreign currency translation | (3.2) | (2.1) | |||
Finite-Lived Intangible Assets, End Of Period | 122.2 | 123.5 | 118.6 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | 41.9 | 36.4 | 31.0 | ||
Finite Lived Intangible Assets, Accumulated Amortization, Foreign Currency Translation | $ (1.1) | (0.8) | |||
Land Use Rights | |||||
Goodwill [Roll Forward] | |||||
Weighted average useful life | 45 years | ||||
Amortization of intangibles | $ 0.2 | 0.2 | |||
Finite-lived Intangible Assets [Roll Forward] | |||||
Finite-Lived Intangible Assets, Beginning Of Period | 9.7 | 14.9 | |||
Intangible assets acquired | 0.0 | 0.0 | |||
Settlement of purchase consideration | (4.8) | ||||
Finite-Lived Intangible Assets, Foreign currency translation | (0.6) | (0.4) | |||
Finite-Lived Intangible Assets, End Of Period | 9.1 | 9.7 | 14.9 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | 2.9 | 2.9 | 2.7 | ||
Finite Lived Intangible Assets, Accumulated Amortization, Foreign Currency Translation | (0.2) | 0.0 | |||
Trademarks and Trade Names | |||||
Indefinite-lived Intangible Assets [Roll Forward] | |||||
Indefinite-lived Intangible Assets, Beginning Of Period | 89.0 | 93.7 | |||
Indefinite-lived Intangible Assets, Foreign Currency Translation | (3.7) | (4.7) | |||
Indefinite-lived Intangible Assets, End Of Period | $ 85.3 | $ 89.0 | $ 93.7 | ||
Massey Ferguson | |||||
Future Amortization Expense | |||||
Number of countries where products sold (over) | country | 140 | ||||
Valtra Brand | |||||
Future Amortization Expense | |||||
Number of countries where products sold (over) | country | 50 | ||||
Minimum | |||||
Goodwill [Roll Forward] | |||||
Finite-Lived Intangible Asset, Useful Life Range | 5 years | ||||
Maximum | |||||
Goodwill [Roll Forward] | |||||
Finite-Lived Intangible Asset, Useful Life Range | 50 years |
Operations and Summary of Significant Accounting Policies - Accrued Expense and Reserves (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Operations and Summary of Significant Accounting Policies [Abstract] | |||
Reserve for volume discounts and sales incentives | $ 443.3 | $ 465.2 | |
Warranty Reserves | 195.2 | 245.7 | |
Accrued Employee Benefits, Including Pension | 213.7 | 232.8 | |
Accrued taxes | 87.3 | 108.4 | |
Other | 167.4 | 192.0 | |
Accrued Expenses | 1,106.9 | 1,244.1 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Warranty reserves, beginning of period | 284.6 | 294.9 | $ 256.9 |
Product Warranty Accrual, Acquisitions | 0.2 | 0.5 | 0.0 |
Product Warranty Accrual, Accruals for warranties issued during the year | 152.6 | 214.1 | 200.3 |
Product Warranty Accrual, Settlements made (in cash or in kind) during the year | (186.2) | (205.5) | (165.7) |
Product Warranty Accrual, Foreign Currency Translation | (20.9) | (19.4) | 3.4 |
Warranty reserves, end of period | $ 230.3 | 284.6 | $ 294.9 |
Standard Product Warranty Period Minimum | 1 year | ||
Standard Product Warranty Period Maximum | 4 years | ||
Standard Product Warranty Accrual, Noncurrent | $ 35.1 | $ 38.9 |
Operations and Summary of Significant Accounting Policies - Stock Compensation Allocation (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated Share-based Compensation Expense | $ 12.5 | $ (10.6) | $ 34.9 |
Cost of Goods Sold | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated Share-based Compensation Expense | 0.9 | (0.9) | 2.3 |
Selling, General and Administrative Expenses | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated Share-based Compensation Expense | $ 11.6 | $ (9.7) | $ 32.6 |
Operations and Summary of Significant Accounting Policies - Expenses (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Advertising Expense | $ 50.9 | $ 59.8 | $ 60.5 |
Interest Income (Expense), Net [Abstract] | |||
Interest expense | 64.1 | 71.9 | 78.8 |
Interest Income | (18.7) | (13.5) | (20.8) |
Interest Expense, Net | 45.4 | 58.4 | 58.0 |
Selling, General and Administrative Expenses | |||
Shipping and Handling Costs | $ 26.6 | $ 29.2 | $ 29.3 |
Operations and Summary of Significant Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Earnings Per Share, Basic [Abstract] | |||
Net income (loss) attributable to parent | $ 266.4 | $ 410.4 | $ 597.2 |
Weighted Average Number of Common Shares Outstanding, Basic | 87.0 | 93.4 | 97.3 |
Basic net income per share attributable to AGCO Corporation and subsidiaries | $ 3.06 | $ 4.39 | $ 6.14 |
Diluted net income per share: | |||
Dilutive stock options, SSARs, performance share awards and restricted stock units | 0.1 | 0.3 | 0.8 |
Weighted average assumed conversion of contingently convertible senior subordinated notes | 0.0 | 0.5 | 1.3 |
Weighted average number of common shares and common share equivalents outstanding for purposes of computing diluted income per share | 87.1 | 94.2 | 99.4 |
Diluted net income per share attributable to AGCO and subsidiaries | $ 3.06 | $ 4.36 | $ 6.01 |
Stock Appreciation Rights (SARs) | |||
Diluted net income per share: | |||
Antidilutive securities excluded from computation of earnings per share, amount | 1.2 | 1.0 | 0.8 |
Operations and Summary of Significant Accounting Policies - Comprehensive Income (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Net gain (loss) on derivatives, after tax | $ (1.9) | $ 0.1 | $ (0.9) |
Net changes in fair value of derivatives | (4.6) | (1.4) | (1.4) |
Foreign currency translation adjustment, after tax | (558.2) | (349.3) | (87.2) |
Other comprehensive loss, net of reclassification adjustments | (555.8) | (396.1) | (31.6) |
Parent | |||
Defined benefit pension plans, before Tax | 4.9 | (62.1) | 75.8 |
Defined benefit pension plans, tax | (0.6) | 15.2 | (19.3) |
Defined benefit pension plans, after tax | 4.3 | (46.9) | 56.5 |
Net gain (loss) on derivatives, before tax | (3.1) | 0.1 | (1.4) |
Net gain (loss) on derivatives, tax | 1.2 | 0.0 | 0.5 |
Net gain (loss) on derivatives, after tax | (1.9) | 0.1 | (0.9) |
Foreign currency translation adjustment, before tax | (556.1) | (349.0) | (86.9) |
Foreign currency translation adjustment, tax | 0.0 | 0.0 | 0.0 |
Foreign currency translation adjustment, after tax | (556.1) | (349.0) | (86.9) |
Total components of other comprehensive income (Loss), before tax | (554.3) | (411.0) | (12.5) |
Total components of other comprehensive income (Loss), tax | 0.6 | 15.2 | (18.8) |
Other comprehensive loss, net of reclassification adjustments | (553.7) | (395.8) | (31.3) |
Noncontrolling Interests | |||
Defined benefit pension plans, after tax | 0.0 | 0.0 | 0.0 |
Net changes in fair value of derivatives | 0.0 | 0.0 | 0.0 |
Foreign currency translation adjustment, after tax | (2.1) | (0.3) | (0.3) |
Other comprehensive loss, net of reclassification adjustments | $ (2.1) | $ (0.3) | $ (0.3) |
Acquisitions (Narrative) (Details) BRL in Millions, $ in Millions |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Apr. 17, 2015
USD ($)
|
Sep. 11, 2014
USD ($)
|
Sep. 11, 2014
BRL
|
Aug. 01, 2014
USD ($)
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
Dec. 31, 2013
USD ($)
|
|
Purchase of businesses, net of cash acquired | $ 25.4 | $ 130.3 | $ 9.5 | ||||
Intangible assets acquired | 9.6 | 46.3 | |||||
Goodwill acquired | $ 22.2 | $ 89.6 | $ 7.3 | ||||
Farmer Automatic | |||||||
Purchase of businesses, net of cash acquired | $ 17.9 | ||||||
Cash acquired, net | 0.1 | ||||||
Intangible assets acquired | 9.6 | ||||||
Goodwill acquired | $ 10.0 | ||||||
Santal | |||||||
Company acquired, percent | 39.00% | 39.00% | |||||
Payments to acquire additional interest in subsidiaries | $ 3.7 | BRL 9.0 | |||||
Intersystems Holdings, Inc. | |||||||
Purchase of businesses, net of cash acquired | $ 134.4 | ||||||
Cash acquired, net | 4.1 | ||||||
Intangible assets acquired | 46.3 | ||||||
Goodwill acquired | 89.6 | ||||||
Payments to acquire businesses | $ 130.3 |
Acquisitions (Schedule Of Acquired Other Identifiable Intangible Assets) (Details) - USD ($) $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Apr. 17, 2015 |
Aug. 01, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Intangible assets acquired | $ 9.6 | $ 46.3 | ||
Customer relationships | ||||
Intangible assets acquired | $ 4.1 | $ 28.0 | ||
Weighted average useful life | 14 years | |||
Farmer Automatic | ||||
Intangible assets acquired | $ 9.6 | |||
Farmer Automatic | Customer relationships | ||||
Intangible assets acquired | $ 4.1 | |||
Weighted average useful life | 10 years | |||
Farmer Automatic | Technology | ||||
Intangible assets acquired | $ 3.6 | |||
Weighted average useful life | 10 years | |||
Farmer Automatic | Trademarks | ||||
Intangible assets acquired | $ 1.9 | |||
Weighted average useful life | 10 years | |||
Intersystems Holdings, Inc. | ||||
Intangible assets acquired | $ 46.3 | |||
Intersystems Holdings, Inc. | Customer relationships | ||||
Intangible assets acquired | $ 28.0 | |||
Weighted average useful life | 15 years | |||
Intersystems Holdings, Inc. | Technology | ||||
Intangible assets acquired | $ 11.3 | |||
Weighted average useful life | 15 years | |||
Intersystems Holdings, Inc. | Trademarks | ||||
Intangible assets acquired | $ 7.0 | |||
Weighted average useful life | 16 years |
Restructuring and Other Infrequent Expenses (Details) $ in Millions |
12 Months Ended | 24 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
Dec. 31, 2013
USD ($)
|
Dec. 31, 2015
USD ($)
employees
|
|
Restructuring Cost and Reserve [Line Items] | ||||
Reduction to workforce | employees | 2,100 | |||
Restructuring and other infrequent expenses | $ 22.3 | $ 46.4 | $ 0.0 | |
Payments for restructuring | 29.5 | 19.0 | ||
Restructuring reserve | 16.9 | 25.4 | $ 16.9 | |
Foreign currency translation impacts to be paid in 2016 | $ 1.3 | |||
Employee Severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other infrequent expenses | $ 44.4 |
Accounts Receivable Sales Agreements (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Resale Agreement Counterparty [Line Items] | |||
Ownership percentage | 49.00% | ||
Loss on sales of receivables | $ 18.8 | $ 24.8 | $ 25.6 |
Outstanding funding received from receivable securitization | 17.7 | 43.3 | |
United States, Canada and Europe | |||
Resale Agreement Counterparty [Line Items] | |||
Cash received from receivables sold | $ 1,100.0 | $ 1,200.0 |
Investments in Affiliates (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Schedule of Equity Method Investments [Line Items] | |||
Investment in affiliates | $ 392.9 | $ 424.1 | $ 416.1 |
Equity in net earnings of affiliates | 57.1 | 52.9 | 48.2 |
Equity Method Investment, Summarized Financial Information [Abstract] | |||
Total assets | 7,491.2 | 8,836.4 | |
Total liabilities | 6,757.8 | 8,042.9 | |
Partners’ equity | 733.4 | 793.5 | |
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | |||
Revenues | 313.0 | 383.4 | 389.2 |
Costs | 158.1 | 234.7 | 239.4 |
Income before income taxes | 154.9 | 148.7 | 149.8 |
Receivables from affiliates | 70.1 | 108.4 | 124.3 |
Undistributed earnings | 296.8 | 293.3 | |
Finance joint ventures | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in affiliates | 359.4 | 389.0 | |
Equity in net earnings of affiliates | 53.8 | 48.8 | 48.8 |
Manufacturing joint ventures | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in affiliates | 18.1 | 19.6 | |
Other affiliates | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in affiliates | 15.4 | 15.5 | |
Manufacturing and other joint ventures | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity in net earnings of affiliates | $ 3.3 | $ 4.1 | $ (0.6) |
Income Taxes (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Income Taxes [Line Items] | |||
Undistributed earnings of foreign subsidiaries | $ 2,300.0 | ||
Federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
Deferred tax assets | $ 14.3 | $ 4.2 | |
Valuation allowance | 75.8 | 93.3 | |
Net operating loss carryforwards | 266.1 | ||
Net operating loss carryforwards not subject to expiration | 182.6 | ||
Income taxes paid | 97.6 | 223.6 | $ 174.5 |
Unrecognized income tax benefits that would affect effective tax rate | 133.0 | 130.6 | |
Accrued or deferred taxes relating to uncertain income tax positions | 61.2 | 64.7 | |
Unrecognized Tax Benefits Income Tax Penalties And Interest Accrued on Provision | 5.1 | 2.3 | |
Accrued interest and penalties relating to unrecognized tax benefits | 18.3 | $ 15.3 | |
Foreign | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | 266.1 | ||
2016 | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards, by expiration date | 13.0 | ||
2017 | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards, by expiration date | 30.7 | ||
2018 | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards, by expiration date | $ 39.8 |
Income Taxes (Schedule of Income before Income Tax, Domestic and Foreign) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Sources of income (loss) before income taxes and equity in net earnings of affiliates | |||
United States | $ (49.1) | $ 63.5 | $ 133.1 |
Foreign | 328.5 | 475.5 | 669.5 |
Income before income taxes and equity in net earnings of affiliates | $ 279.4 | $ 539.0 | $ 802.6 |
Income Taxes (Schedule of Components of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Current: | |||
Federal | $ (1.3) | $ 12.6 | $ 9.2 |
State | 2.8 | 2.8 | 9.9 |
Foreign | 97.8 | 168.7 | 217.7 |
Current income tax expense (benefit) | 99.3 | 184.1 | 236.8 |
Deferred: | |||
Federal | (19.0) | (0.4) | 30.2 |
State | 0.0 | 0.0 | 0.0 |
Foreign | (7.8) | 4.0 | (8.5) |
Deferred income tax expense (benefit) | (26.8) | 3.6 | 21.7 |
Income tax provision | $ 72.5 | $ 187.7 | $ 258.5 |
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||
Provision for income taxes at United States federal statutory rate of 35% | $ 97.8 | $ 188.7 | $ 280.9 |
State and local income taxes, net of federal income tax effects | (2.0) | 2.6 | 5.6 |
Taxes on foreign income which differ from the United States statutory rate | (34.9) | (33.4) | (34.7) |
Tax effect of permanent differences | 7.1 | (10.3) | (7.6) |
Change in valuation allowance | (4.5) | 22.8 | 9.3 |
Change in tax contingency reserves | 15.4 | 25.2 | 25.7 |
Research and development tax credits | (4.9) | (7.1) | (19.9) |
Other | (1.5) | (0.8) | (0.8) |
Income tax provision | $ 72.5 | $ 187.7 | $ 258.5 |
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Deferred Tax Assets: | ||
Net operating loss carryforwards | $ 74.0 | $ 75.7 |
Sales incentive discounts | 86.6 | 85.5 |
Inventory valuation reserves | 40.3 | 33.9 |
Pensions and postretirement health care benefits | 63.4 | 76.7 |
Warranty and other reserves | 82.3 | 104.8 |
Research and development tax credits | 9.3 | 0.0 |
Other | 34.1 | 53.4 |
Total gross deferred tax assets | 390.0 | 430.0 |
Valuation allowance | (75.8) | (93.3) |
Total net deferred tax assets | 314.2 | 336.7 |
Deferred Tax Liabilities: | ||
Tax over book depreciation and amortization | 275.1 | 311.0 |
Other | 24.8 | 21.5 |
Total deferred tax liabilities | 299.9 | 332.5 |
Net deferred tax assets | 14.3 | 4.2 |
Amounts recognized in Consolidated Balance Sheets: | ||
Deferred tax assets - noncurrent | 100.7 | 215.9 |
Deferred tax liabilities - noncurrent | (86.4) | (211.7) |
Net deferred tax assets | $ 14.3 | $ 4.2 |
Income Taxes (Summary of Income Tax Contingencies) (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Gross unrecognized tax benefits: | ||
Gross unrecognized income tax benefits, beginning of period | $ 130.6 | $ 122.2 |
Additions for tax positions of the current year | 14.4 | 21.8 |
Additions for tax positions of prior years | 7.1 | 11.0 |
Additions for tax positions related to acquisitions | 0.0 | (0.6) |
Reductions for tax positions of prior years for: | ||
Changes in judgments | (0.3) | (2.2) |
Settlements during the period | 0.0 | (1.9) |
Lapses of applicable statute of limitations | (5.8) | (5.4) |
Foreign currency translation | (13.0) | (14.3) |
Gross unrecognized income tax benefits, end of period | $ 133.0 | $ 130.6 |
Indebtedness (Narrative) (Details) |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
shares
|
Dec. 31, 2013
USD ($)
shares
|
Dec. 31, 2015
EUR (€)
|
Aug. 31, 2015
USD ($)
|
|
Debt Instrument [Line Items] | |||||
Interest Paid | $ 63,000,000 | $ 68,400,000 | $ 66,400,000 | ||
Long-term debt | 297,400,000 | ||||
Repayments of convertible debt | 0 | 201,200,000 | 0 | ||
Outstanding letters of credit | 17,500,000 | 18,500,000 | |||
4 1/2% Senior term loan due 2016 | |||||
Debt Instrument [Line Items] | |||||
Senior Notes | $ 217,200,000 | $ 242,000,000 | € 200,000,000.0 | ||
Debt Interest Rate | 4.50% | 4.50% | 4.50% | ||
Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Long-term line of credit | $ 338,900,000 | $ 404,400,000 | |||
Remaining borrowing capacity | 750,600,000 | ||||
1.056% Senior Term Loan | |||||
Debt Instrument [Line Items] | |||||
Senior Notes | $ 217,200,000 | $ 0 | € 200,000,000.0 | ||
Unused borrowing capacity | € | € 200,000,000.0 | ||||
Debt Interest Rate | 1.056% | 1.056% | 1.056% | ||
5 7/8% Senior Notes due 2021 | |||||
Debt Instrument [Line Items] | |||||
Senior Notes | $ 297,400,000 | $ 300,000,000 | |||
Debt Interest Rate | 5.875% | 5.875% | 5.875% | ||
Long-term debt | $ 297,400,000 | $ 337,600,000 | |||
Debt, weighted average interest rate | 4.53% | 4.53% | |||
5 7/8% Senior Notes due 2021 | Interest Accrual, Option Two | |||||
Debt Instrument [Line Items] | |||||
Variable rate | 0.50% | ||||
1 1/4percent Convertible Senior Subordinated Notes Due December 15, 2036 | |||||
Debt Instrument [Line Items] | |||||
Debt Interest Rate | 1.25% | 1.25% | 1.25% | ||
Debt repurchased | $ 49,700,000 | ||||
Convertible notes converted | 151,500,000 | 100,000 | |||
Excess conversion value of the notes | $ 81,000,000 | $ 100,000 | |||
Conversion of 1 1/4% convertible senior subordinated notes, shares issued | shares | 1,437,465 | 286 | |||
Repayments of convertible debt | $ 201,200,000 | ||||
Amended and Restated Credit Facility Agreement | Line of Credit | Interest Accrual, Option Two | |||||
Debt Instrument [Line Items] | |||||
Variable rate | 0.50% | ||||
Amended and Restated Credit Facility Agreement | Line of Credit | Interest Accrual, Option Three | |||||
Debt Instrument [Line Items] | |||||
Variable rate | 1.00% | ||||
Amended and Restated Credit Facility Agreement | Line of Credit | Minimum | Interest Accrual, Option One | |||||
Debt Instrument [Line Items] | |||||
Variable rate | 1.00% | ||||
Amended and Restated Credit Facility Agreement | Line of Credit | Maximum | Interest Accrual, Option One | |||||
Debt Instrument [Line Items] | |||||
Variable rate | 1.75% | ||||
Amended and Restated Credit Facility Agreement | Variable Basis, Additional Margin | Line of Credit | Minimum | Interest Accrual, Option Three | |||||
Debt Instrument [Line Items] | |||||
Variable rate | 0.00% | ||||
Amended and Restated Credit Facility Agreement | Variable Basis, Additional Margin | Line of Credit | Maximum | Interest Accrual, Option Three | |||||
Debt Instrument [Line Items] | |||||
Variable rate | 0.25% | ||||
Prior Credit Facility Agreement | Line of Credit | Interest Accrual, Option Two | |||||
Debt Instrument [Line Items] | |||||
Variable rate | 0.50% | ||||
Prior Credit Facility Agreement | Line of Credit | Interest Accrual, Option Three | |||||
Debt Instrument [Line Items] | |||||
Variable rate | 1.00% | ||||
Prior Credit Facility Agreement | Line of Credit | Minimum | Interest Accrual, Option One | |||||
Debt Instrument [Line Items] | |||||
Variable rate | 1.00% | ||||
Prior Credit Facility Agreement | Line of Credit | Maximum | Interest Accrual, Option One | |||||
Debt Instrument [Line Items] | |||||
Variable rate | 2.00% | ||||
Prior Credit Facility Agreement | Variable Basis, Additional Margin | Line of Credit | Minimum | Interest Accrual, Option Three | |||||
Debt Instrument [Line Items] | |||||
Variable rate | 0.00% | ||||
Prior Credit Facility Agreement | Variable Basis, Additional Margin | Line of Credit | Maximum | Interest Accrual, Option Three | |||||
Debt Instrument [Line Items] | |||||
Variable rate | 0.50% | ||||
Term Loan Facility | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 338,900,000 | € 312,000,000 | |||
Fair value of amount outstanding | 355,000,000 | $ 355,000,000 | |||
Revolving Credit Facility | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 800,000,000 | ||||
Fair value of amount outstanding | $ 49,400,000 | ||||
Long-term line of credit | 0 | ||||
Remaining borrowing capacity | $ 800,000,000 | ||||
Cash Flow Hedging | Interest Rate Swap | Designated as Hedging Instrument | |||||
Debt Instrument [Line Items] | |||||
Derivative, fixed interest rate | 0.33% | 0.33% |
Indebtedness (Components Of Indebtedness) (Details) $ in Millions |
Dec. 31, 2015
USD ($)
|
Dec. 31, 2015
EUR (€)
|
Dec. 31, 2014
USD ($)
|
---|---|---|---|
Debt Instrument [Line Items] | |||
Other long-term debt | $ 164.3 | $ 145.5 | |
Total indebtedness | 1,235.0 | 1,091.9 | |
Less: Current portion of long-term debt | (89.0) | (94.3) | |
Total indebtedness, less current portion | 928.8 | 997.6 | |
4 1/2% Senior term loan due 2016 | |||
Debt Instrument [Line Items] | |||
Senior Notes | 217.2 | € 200,000,000.0 | 242.0 |
Less: Current portion of long-term debt | (217.2) | 0.0 | |
1.056% Senior Term Loan | |||
Debt Instrument [Line Items] | |||
Senior Notes | 217.2 | € 200,000,000.0 | 0.0 |
5 7/8% Senior Notes due 2021 | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 297.4 | $ 300.0 |
Indebtedness (Maturities of Long-term Debt) (Details) - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Aggregate scheduled maturities of long-term debt, excluding current maturities | ||
2017 | $ 33.2 | |
2018 | 20.0 | |
2019 | 7.6 | |
2020 | 570.6 | |
Thereafter | 297.4 | |
Total indebtedness, less current portion | $ 928.8 | $ 997.6 |
Indebtedness (Interest Expense Recognized On Convertible Senior Subordinated Notes) (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2014 |
Dec. 31, 2013 |
|
1 1/4percent Convertible Senior Subordinated Notes Due December 15, 2036 | ||
Interest expense | $ 0.9 | $ 11.7 |
Employee Benefit Plans (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
||||
Unrecognized net actuarial losses | $ 336.6 | $ 341.5 | $ 279.4 | ||||
Reduction in equity | $ (249.0) | (253.3) | (206.4) | ||||
Percentage of joint venture's unrecognized net actuarial losses and unrecognized prior service cost | 49.00% | ||||||
Defined benefit plan, target allocation percentage of assets, near-term benefit payments | 30.00% | ||||||
Defined benefit plan, target allocation percentage of assets, long-term growth | 70.00% | ||||||
Company contributions | $ 12.0 | 13.3 | 13.0 | ||||
Minimum | |||||||
Percentage of joint venture's unrecognized net actuarial losses and unrecognized prior service cost | 20.00% | ||||||
GIMA | |||||||
Unrecognized net actuarial losses | 1.6 | ||||||
Reduction in equity | $ 1.4 | ||||||
Tax effect of benefit plans | $ 0.5 | $ 0.6 | |||||
Percentage of joint venture's unrecognized net actuarial losses and unrecognized prior service cost | 50.00% | 50.00% | |||||
Net loss recognized due to settlement | $ 0.1 | $ 0.2 | |||||
Pension and Other Postretirement Benefit Plans [Member] | |||||||
Unrecognized net actuarial losses | 335.2 | 339.9 | |||||
Aggregate projected benefit obligation | 869.2 | 956.4 | |||||
Accumulated benefit obligation | 816.9 | 901.7 | |||||
Fair value of plan assets | 627.9 | 677.2 | |||||
Tax effect of benefit plans | 87.1 | 87.6 | |||||
Pension Benefits | |||||||
Unrecognized net actuarial losses | 319.0 | 329.7 | |||||
Net prior service (credit) cost | 11.2 | 3.2 | |||||
Net loss recognized due to settlement | $ 0.2 | $ 0.4 | [1] | $ 0.1 | |||
Weighted average discount rate | 3.60% | 3.50% | |||||
Benefit payments in 2016 | $ 48.0 | ||||||
Benefit payments made to defined benefit pension plans and ENPP | 51.3 | ||||||
Benefit payments made | $ 50.8 | $ 55.9 | |||||
Weighted average expected long-term rate of return on plan assets | 6.80% | 6.90% | 6.80% | ||||
U.S. Based Pension Benefit Plans | |||||||
Aggregate projected benefit obligation | $ 112.2 | $ 102.9 | |||||
Accumulated benefit obligation | 98.4 | 90.2 | |||||
Fair value of plan assets | $ 38.1 | $ 41.5 | |||||
Weighted average discount rate | 4.60% | 4.15% | |||||
Expected minimum contribution | $ 1.1 | ||||||
Defined benefit plan, target allocation percentage of assets, near-term benefit payments | 15.00% | ||||||
Defined benefit plan, target allocation percentage of assets, long-term growth | 85.00% | ||||||
Defined benefit plan, assumptions used in investment strategy, expected return next fiscal year | 6.00% | ||||||
Weighted average expected long-term rate of return on plan assets | 6.00% | 7.00% | 7.00% | ||||
Non-U.S. Pension Benefit Plans | |||||||
Expected minimum contribution | $ 31.5 | ||||||
Defined benefit plan, historical average return on asset mix | 7.25% | ||||||
U.K. Pension Plans, Defined Benefit | |||||||
Expected minimum contribution | $ 23.1 | ||||||
Weighted average expected long-term rate of return on plan assets | 7.00% | ||||||
ENPP | |||||||
Minimum age for vesting | 50 years | ||||||
Minimum participation period to qualify for payment | 10 years | ||||||
Minimum service period to vest | 5 years | ||||||
Minimum age to receive benefits | 65 years | ||||||
Period over which retirement benefits are paid | 15 years | ||||||
Period considered when determining retirement benefits | 3 years | ||||||
Minimum service period | 20 years | ||||||
Final years of service | 10 years | ||||||
ENPP | Minimum | |||||||
Benefits paid to executives, percent | 2.25% | ||||||
ENPP | Maximum | |||||||
Benefits paid to executives, percent | 3.00% | ||||||
Postretirement Benefits | |||||||
Unrecognized net actuarial losses | $ 1.4 | $ 3.3 | |||||
Net prior service (credit) cost | $ 3.6 | $ 3.7 | |||||
Weighted average discount rate | 5.10% | 4.60% | |||||
Benefit payments in 2016 | $ 1.5 | ||||||
Benefit payments made | $ 1.2 | $ 1.6 | |||||
Brazilian Postretirement Benefit Obligation, Defined Benefit | |||||||
Health care cost trend rate assumed | 12.60% | 12.25% | |||||
Ultimate health care cost trend rate | 6.75% | 6.45% | |||||
Benefit payments in 2016 | $ 0.1 | ||||||
U.S Based Postretirement Health Care and Life Insurance Benefit Plans | |||||||
Health care cost trend rate assumed | 7.25% | 7.00% | |||||
Ultimate health care cost trend rate | 5.00% | ||||||
Benefit payments in 2016 | $ 1.5 | ||||||
Forecast | Pension Benefits | |||||||
Net actuarial (gain) loss that will be amortized from accumulated other comprehensive loss | $ 10.7 | ||||||
Net prior service (credit) cost that will be amortized from accumulated other comprehensive loss | (1.1) | ||||||
Forecast | Postretirement Benefits | |||||||
Net actuarial (gain) loss that will be amortized from accumulated other comprehensive loss | 0.1 | ||||||
Net prior service (credit) cost that will be amortized from accumulated other comprehensive loss | $ (0.1) | ||||||
Large and small cap domestic equity securities | U.S. Based Pension Benefit Plans | |||||||
Defined benefit plan, target plan asset allocations | 30.00% | ||||||
International Equity Securities | U.S. Based Pension Benefit Plans | |||||||
Defined benefit plan, target plan asset allocations | 12.00% | ||||||
Fixed Income Securities | U.S. Based Pension Benefit Plans | |||||||
Defined benefit plan, target plan asset allocations | 44.00% | ||||||
Alternative Investments | |||||||
Defined benefit plan, target plan asset allocations | 20.00% | ||||||
Alternative Investments | U.S. Based Pension Benefit Plans | |||||||
Defined benefit plan, target plan asset allocations | 14.00% | ||||||
Equity Securities | |||||||
Defined benefit plan, target plan asset allocations | 45.00% | ||||||
Fixed Income Investments | |||||||
Defined benefit plan, target plan asset allocations | 35.00% | ||||||
|
Employee Benefit Plans (Net Pension And Postretirement Cost) (Details) - USD ($) $ in Millions |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
||||
Pension Benefits | ||||||
Service cost | $ 18.7 | $ 16.8 | [1] | $ 18.0 | ||
Interest cost | 31.2 | 37.3 | [1] | 35.4 | ||
Expected return on plan assets | (44.4) | (44.5) | [1] | (37.6) | ||
Amortization of net actuarial losses | 8.0 | 9.5 | [1] | 14.0 | ||
Amortization of prior service cost | 0.4 | 0.8 | [1] | 0.8 | ||
Net loss recognized due to settlement | 0.2 | 0.4 | [1] | 0.1 | ||
Net gain recognized due to curtailment | 0.0 | (0.5) | [1] | 0.0 | ||
Special termination benefits | 0.5 | 1.3 | [1] | 0.0 | ||
Net annual pension cost | $ 14.6 | $ 21.0 | [1] | $ 30.7 | ||
Weighted average discount rate | 3.50% | 4.40% | 4.30% | |||
Postretirement Benefits | ||||||
Service cost | $ 0.0 | $ 0.1 | $ 0.1 | |||
Interest cost | 1.3 | 1.6 | 1.7 | |||
Amortization of net actuarial losses | 0.1 | 0.1 | 0.5 | |||
Amortization of prior service cost | 0.2 | 0.2 | 0.2 | |||
Other | 0.0 | 0.2 | 0.0 | |||
Net annual pension cost | $ 1.6 | $ 2.2 | $ 2.5 | |||
Weighted average discount rate | 4.60% | 5.30% | 4.70% | |||
|
Employee Benefit Plans (Assumptions for Pension and Postretirement Cost) (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Minimum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Rate of increase in future compensation | 2.25% | 2.50% | 2.50% |
Maximum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Rate of increase in future compensation | 5.00% | 5.00% | 5.00% |
Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Weighted average discount rate | 3.50% | 4.40% | 4.30% |
Weighted average expected long-term rate of return on plan assets | 6.80% | 6.90% | 6.80% |
U.S. Based Pension Benefit Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Weighted average discount rate | 4.15% | 4.75% | 3.85% |
Weighted average expected long-term rate of return on plan assets | 6.00% | 7.00% | 7.00% |
Rate of increase in future compensation | 5.00% | 5.00% | 5.00% |
Employee Benefit Plans (Net Funded Status) (Details) - USD ($) $ in Millions |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
||||
Change in plan assets | ||||||
Unrecognized net actuarial losses | $ 336.6 | $ 341.5 | $ 279.4 | |||
Amounts recognized in Consolidated Balance Sheets: | ||||||
Pensions and postretirement health care benefits (noncurrent) | (233.9) | (269.0) | ||||
Pension Benefits | ||||||
Change in benefit obligation | ||||||
Benefit obligation, beginning of period | 926.8 | 888.2 | ||||
Service cost | 18.7 | 16.8 | [1] | 18.0 | ||
Interest cost | 31.2 | 37.3 | [1] | 35.4 | ||
Plan participants’ contributions | 1.2 | 1.3 | ||||
Actuarial (gains) losses | (41.7) | 109.6 | ||||
Amendments | 8.3 | 0.0 | ||||
Settlements | (0.5) | (4.2) | ||||
Curtailments | 0.0 | (7.3) | ||||
Benefits paid | (50.8) | (55.9) | ||||
Special termination benefits and other | 0.5 | 1.3 | ||||
Foreign currency exchange rate changes | (49.3) | (60.3) | ||||
Benefit obligation, end of period | 844.4 | 926.8 | 888.2 | |||
Change in plan assets | ||||||
Fair value of plan assets at beginning of year | 677.2 | 660.7 | ||||
Actual return on plan assets | 5.2 | 73.7 | ||||
Employer contributions | 34.0 | 43.4 | ||||
Plan participants’ contributions | 1.2 | 1.3 | ||||
Benefits paid | (50.8) | (55.9) | ||||
Settlements | (0.5) | (4.2) | ||||
Foreign currency exchange rate changes | (35.6) | (41.8) | ||||
Fair value of plan assets at end of year | 630.7 | 677.2 | 660.7 | |||
Funded status | (213.7) | (249.6) | ||||
Unrecognized net actuarial losses | 319.0 | 329.7 | ||||
Unrecognized prior service cost | 11.2 | 3.2 | ||||
Accumulated other comprehensive loss | (330.2) | (332.9) | ||||
Net amount recognized | (213.7) | (249.6) | ||||
Amounts recognized in Consolidated Balance Sheets: | ||||||
Other long-term asset | 0.2 | 0.0 | ||||
Other current liabilities | (3.5) | (3.3) | ||||
Accrued expenses | (2.3) | (5.4) | ||||
Pensions and postretirement health care benefits (noncurrent) | (208.1) | (240.9) | ||||
Postretirement Benefits | ||||||
Change in benefit obligation | ||||||
Benefit obligation, beginning of period | 29.6 | 30.3 | ||||
Service cost | 0.0 | 0.1 | 0.1 | |||
Interest cost | 1.3 | 1.6 | 1.7 | |||
Plan participants’ contributions | 0.0 | 0.0 | ||||
Actuarial (gains) losses | (1.7) | (0.7) | ||||
Amendments | 0.0 | 0.0 | ||||
Settlements | 0.0 | 0.0 | ||||
Curtailments | 0.0 | 0.0 | ||||
Benefits paid | (1.2) | (1.6) | ||||
Special termination benefits and other | 0.0 | 0.2 | ||||
Foreign currency exchange rate changes | (0.7) | (0.3) | ||||
Benefit obligation, end of period | 27.3 | 29.6 | 30.3 | |||
Change in plan assets | ||||||
Fair value of plan assets at beginning of year | 0.0 | 0.0 | ||||
Actual return on plan assets | 0.0 | 0.0 | ||||
Employer contributions | 1.2 | 1.6 | ||||
Plan participants’ contributions | 0.0 | 0.0 | ||||
Benefits paid | (1.2) | (1.6) | ||||
Settlements | 0.0 | 0.0 | ||||
Foreign currency exchange rate changes | 0.0 | 0.0 | ||||
Fair value of plan assets at end of year | 0.0 | 0.0 | $ 0.0 | |||
Funded status | (27.3) | (29.6) | ||||
Unrecognized net actuarial losses | 1.4 | 3.3 | ||||
Unrecognized prior service cost | 3.6 | 3.7 | ||||
Accumulated other comprehensive loss | (5.0) | (7.0) | ||||
Net amount recognized | (27.3) | (29.6) | ||||
Amounts recognized in Consolidated Balance Sheets: | ||||||
Other long-term asset | 0.0 | 0.0 | ||||
Other current liabilities | (1.5) | (1.5) | ||||
Accrued expenses | 0.0 | 0.0 | ||||
Pensions and postretirement health care benefits (noncurrent) | $ (25.8) | $ (28.1) | ||||
|
Employee Benefit Plans (Net Periodic Pension Costs Included in Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Before-Tax Amount | |||
Accumulated other comprehensive loss, before tax, beginning of period | $ (341.5) | $ (279.4) | |
Net loss recognized due to settlement, before tax | 0.3 | 0.6 | |
Net gain recognized due to curtailment, before tax | (0.5) | ||
Net actuarial (loss) gain arising during the year, before tax | 4.2 | (72.8) | |
Amortization of prior service cost, before tax | 0.6 | 1.0 | |
Amortization of net actuarial losses | 8.1 | 9.6 | |
Prior service cost arising during the year, before tax | (8.3) | ||
Accumulated other comprehensive loss, before tax, end of period | (336.6) | (341.5) | $ (279.4) |
Income Tax | |||
Accumulated other comprehensive loss, tax, beginning of period | (88.2) | (73.0) | |
Net loss recognized due to settlement, tax | 0.1 | 0.2 | |
Net gain recognized due to curtailment, tax | (0.1) | ||
Net actuarial (loss) gain arising during the year, tax | 2.1 | (18.0) | |
Amortization of prior service costs, tax | 0.2 | 0.4 | |
Amortization of net actuarial losses, tax | 1.8 | 2.3 | |
Prior service cost arising during the year, tax | (3.6) | ||
Accumulated other comprehensive loss, tax, end of period | (87.6) | (88.2) | (73.0) |
After-Tax Amount | |||
Accumulated other comprehensive loss, after tax, beginning of period | (253.3) | (206.4) | |
Net loss recognized due to settlement | 0.2 | 0.4 | 0.0 |
Net gain recognized due to curtailment | 0.0 | (0.4) | 0.0 |
Net actuarial (loss) gain arising during the year, after tax | 2.1 | (54.8) | 45.2 |
Amortization of prior service costs, after tax | 0.4 | 0.6 | 0.6 |
Amortization of net actuarial losses included in net periodic pension cost | 6.3 | 7.3 | 10.7 |
Prior service cost arising during year | (4.7) | 0.0 | 0.0 |
Accumulated other comprehensive loss, after tax, end of period | $ (249.0) | $ (253.3) | $ (206.4) |
Employee Benefit Plans (Assumptions for Benefit Obligation) (Details) |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
||
---|---|---|---|---|---|
Pension Benefits | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Weighted average discount rate | 3.60% | 3.50% | |||
U.S. Based Pension Benefit Plans | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Weighted average discount rate | 4.60% | 4.15% | |||
Rate of increase in future compensation | [1] | 5.00% | 5.00% | ||
Minimum | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Rate of increase in future compensation | 2.00% | 2.50% | 2.50% | ||
Maximum | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Rate of increase in future compensation | 5.00% | 5.00% | 5.00% | ||
|
Employee Benefit Plans (One Percentage Point Change in Health Care Trend Rate) (Details) $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2015
USD ($)
| |
Pension and Other Postretirement Benefit Expense [Abstract] | |
Effect on service and interest cost, One percentage point increase | $ 0.2 |
Effect on service and interest cost, One percentage point decrease | (0.2) |
Effect on accumulated benefit obligation, One percentage point increase | 3.2 |
Effect on accumulated benefit obligation, One percentage point decrease | $ (2.7) |
Employee Benefit Plans (Expected Future Minimum Payments) (Details) $ in Millions |
Dec. 31, 2015
USD ($)
|
---|---|
Pension Benefits | |
Aggregate expected benefit payments | |
2016 | $ 48.0 |
2017 | 49.5 |
2018 | 50.2 |
2019 | 50.4 |
2020 | 51.5 |
2021 through 2025 | 279.5 |
Total | 529.1 |
Postretirement Benefits | |
Aggregate expected benefit payments | |
2016 | 1.5 |
2017 | 1.6 |
2018 | 1.7 |
2019 | 1.7 |
2020 | 1.7 |
2021 through 2025 | 9.4 |
Total | $ 17.6 |
Employee Benefit Plans (Asset Allocation) (Details) |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
U.S. Based Pension Benefit Plans | ||
Asset Category | ||
Equity Securities | 100.00% | 100.00% |
Non-U.S. Pension Benefit Plans | ||
Asset Category | ||
Equity Securities | 100.00% | 100.00% |
Large and small cap domestic equity securities | U.S. Based Pension Benefit Plans | ||
Asset Category | ||
Equity Securities | 28.00% | 28.00% |
International Equity Securities | U.S. Based Pension Benefit Plans | ||
Asset Category | ||
Equity Securities | 10.00% | 10.00% |
Fixed Income Securities | U.S. Based Pension Benefit Plans | ||
Asset Category | ||
Equity Securities | 44.00% | 42.00% |
Fixed Income Securities | Non-U.S. Pension Benefit Plans | ||
Asset Category | ||
Equity Securities | 36.00% | 38.00% |
Equity Securities | Non-U.S. Pension Benefit Plans | ||
Asset Category | ||
Equity Securities | 44.00% | 42.00% |
Other Investments | U.S. Based Pension Benefit Plans | ||
Asset Category | ||
Equity Securities | 18.00% | 20.00% |
Other Investments | Non-U.S. Pension Benefit Plans | ||
Asset Category | ||
Equity Securities | 20.00% | 20.00% |
Employee Benefit Plans (Fair Value of Plan Assets) (Details) - Pension Benefits - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | $ 630.7 | $ 677.2 | $ 660.7 | ||||||||||||
Percentage of fixed income securities consisting of investment-grade corporate bonds | 45.00% | 37.00% | |||||||||||||
Percentage of fixed income securities consisting of government treasuries | 32.00% | 39.00% | |||||||||||||
Percentage of fixed income securities consisting of other various fixed income securities | 23.00% | 24.00% | |||||||||||||
Percentage of alternative investments consisting of long-short equity funds | 34.00% | 34.00% | |||||||||||||
Percentage of alternative investments consisting of event-driven funds | 26.00% | 31.00% | |||||||||||||
Percentage of alternative investments consisting of relative value funds | 13.00% | 12.00% | |||||||||||||
Percentage of alternative investments consisting of credit funds | 13.00% | 10.00% | |||||||||||||
Percentage of alternative investments consisting of hedged and non-hedged funds | 12.00% | 9.00% | |||||||||||||
Percentage of alternative investments consisting of multi-strategy funds | 2.00% | 4.00% | |||||||||||||
Level 1 | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | $ 490.0 | $ 522.6 | |||||||||||||
Level 2 | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 7.4 | 7.5 | |||||||||||||
Level 3 | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 133.3 | 147.1 | 171.8 | ||||||||||||
Equity Securities | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 268.4 | 274.6 | |||||||||||||
Equity Securities | Level 1 | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 268.4 | 274.6 | |||||||||||||
Equity Securities | Level 2 | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 0.0 | 0.0 | |||||||||||||
Equity Securities | Level 3 | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 0.0 | 0.0 | |||||||||||||
Global Equities | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 129.0 | 135.9 | |||||||||||||
Global Equities | Level 1 | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 129.0 | 135.9 | |||||||||||||
Global Equities | Level 2 | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 0.0 | 0.0 | |||||||||||||
Global Equities | Level 3 | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 0.0 | 0.0 | |||||||||||||
Non-U.S. Equities | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 3.9 | 4.3 | |||||||||||||
Non-U.S. Equities | Level 1 | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 3.9 | 4.3 | |||||||||||||
Non-U.S. Equities | Level 2 | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 0.0 | 0.0 | |||||||||||||
Non-U.S. Equities | Level 3 | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 0.0 | 0.0 | |||||||||||||
U.K. Equities | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 124.8 | 122.8 | |||||||||||||
U.K. Equities | Level 1 | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 124.8 | 122.8 | |||||||||||||
U.K. Equities | Level 2 | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 0.0 | 0.0 | |||||||||||||
U.K. Equities | Level 3 | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 0.0 | 0.0 | |||||||||||||
U.S. Large Cap Equities | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 7.1 | 7.1 | |||||||||||||
U.S. Large Cap Equities | Level 1 | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 7.1 | 7.1 | |||||||||||||
U.S. Large Cap Equities | Level 2 | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 0.0 | 0.0 | |||||||||||||
U.S. Large Cap Equities | Level 3 | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 0.0 | 0.0 | |||||||||||||
U.S. Small Cap Equities | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 3.6 | 4.5 | |||||||||||||
U.S. Small Cap Equities | Level 1 | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 3.6 | 4.5 | |||||||||||||
U.S. Small Cap Equities | Level 2 | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 0.0 | 0.0 | |||||||||||||
U.S. Small Cap Equities | Level 3 | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 0.0 | 0.0 | |||||||||||||
Fixed Income Securities | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 221.6 | [1] | 248.0 | [2] | |||||||||||
Fixed Income Securities | Level 1 | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 221.6 | [1] | 248.0 | [2] | |||||||||||
Fixed Income Securities | Level 2 | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 0.0 | [1] | 0.0 | [2] | |||||||||||
Fixed Income Securities | Level 3 | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 0.0 | [1] | 0.0 | [2] | |||||||||||
Aggregate Fixed Income | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 16.8 | 17.5 | |||||||||||||
Aggregate Fixed Income | Level 1 | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 16.8 | 17.5 | |||||||||||||
Aggregate Fixed Income | Level 2 | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 0.0 | 0.0 | |||||||||||||
Aggregate Fixed Income | Level 3 | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 0.0 | 0.0 | |||||||||||||
International Fixed Income | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 204.8 | 230.5 | |||||||||||||
International Fixed Income | Level 1 | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 204.8 | 230.5 | |||||||||||||
International Fixed Income | Level 2 | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 0.0 | 0.0 | |||||||||||||
International Fixed Income | Level 3 | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 0.0 | 0.0 | |||||||||||||
Cash and Cash Equivalents | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 7.4 | 7.5 | |||||||||||||
Cash and Cash Equivalents | Level 1 | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 0.0 | 0.0 | |||||||||||||
Cash and Cash Equivalents | Level 2 | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 7.4 | 7.5 | |||||||||||||
Cash and Cash Equivalents | Level 3 | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 0.0 | 0.0 | |||||||||||||
Cash | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 7.4 | 7.5 | |||||||||||||
Cash | Level 1 | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 0.0 | 0.0 | |||||||||||||
Cash | Level 2 | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 7.4 | 7.5 | |||||||||||||
Cash | Level 3 | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 0.0 | 0.0 | |||||||||||||
Alternative Investments | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 111.6 | [2] | 124.3 | [3] | |||||||||||
Alternative Investments | Level 1 | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 0.0 | [2] | 0.0 | [3] | |||||||||||
Alternative Investments | Level 2 | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 0.0 | [2] | 0.0 | [3] | |||||||||||
Alternative Investments | Level 3 | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 111.6 | [2] | 124.3 | [3] | 146.0 | ||||||||||
Miscellaneous Funds | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 21.7 | [4] | 22.8 | [5] | |||||||||||
Miscellaneous Funds | Level 1 | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 0.0 | [4] | 0.0 | [5] | |||||||||||
Miscellaneous Funds | Level 2 | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | 0.0 | [4] | 0.0 | [5] | |||||||||||
Miscellaneous Funds | Level 3 | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Total assets | $ 21.7 | [4] | $ 22.8 | [5] | $ 25.8 | ||||||||||
|
Employee Benefit Plans (Reconciliation of Level 3 Assets) (Details) - Pension Benefits - USD ($) $ in Millions |
12 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
||||||||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||||||||||
Fair value of plan assets at beginning of year | $ 677.2 | $ 660.7 | |||||||||||
Foreign currency exchange rate changes | (35.6) | (41.8) | |||||||||||
Fair value of plan assets at end of year | 630.7 | 677.2 | |||||||||||
Alternative Investments | |||||||||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||||||||||
Fair value of plan assets at beginning of year | [1] | 124.3 | |||||||||||
Fair value of plan assets at end of year | 111.6 | [2] | 124.3 | [1] | |||||||||
Miscellaneous Funds | |||||||||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||||||||||
Fair value of plan assets at beginning of year | [3] | 22.8 | |||||||||||
Fair value of plan assets at end of year | 21.7 | [4] | 22.8 | [3] | |||||||||
Level 3 | |||||||||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||||||||||
Fair value of plan assets at beginning of year | 147.1 | 171.8 | |||||||||||
Actual return on plan assets - relating to assets still held at reporting date | (0.6) | 6.3 | |||||||||||
Actual return on plan assets - relating to assets sold during period | 0.0 | 2.3 | |||||||||||
Purchases, sales and /or settlements | (4.5) | (22.6) | |||||||||||
Foreign currency exchange rate changes | (8.7) | (10.7) | |||||||||||
Fair value of plan assets at end of year | 133.3 | 147.1 | |||||||||||
Level 3 | Alternative Investments | |||||||||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||||||||||
Fair value of plan assets at beginning of year | 124.3 | [1] | 146.0 | ||||||||||
Actual return on plan assets - relating to assets still held at reporting date | (2.2) | 5.1 | |||||||||||
Actual return on plan assets - relating to assets sold during period | 0.0 | 2.3 | |||||||||||
Purchases, sales and /or settlements | (4.3) | (21.7) | |||||||||||
Foreign currency exchange rate changes | (6.2) | (7.4) | |||||||||||
Fair value of plan assets at end of year | 111.6 | [2] | 124.3 | [1] | |||||||||
Level 3 | Miscellaneous Funds | |||||||||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||||||||||
Fair value of plan assets at beginning of year | 22.8 | [3] | 25.8 | ||||||||||
Actual return on plan assets - relating to assets still held at reporting date | 1.6 | 1.2 | |||||||||||
Actual return on plan assets - relating to assets sold during period | 0.0 | 0.0 | |||||||||||
Purchases, sales and /or settlements | (0.2) | (0.9) | |||||||||||
Foreign currency exchange rate changes | (2.5) | (3.3) | |||||||||||
Fair value of plan assets at end of year | $ 21.7 | [4] | $ 22.8 | [3] | |||||||||
|
Stockholders' Equity (Narrative) (Details) - USD ($) |
2 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Feb. 26, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Jan. 28, 2016 |
|
Accelerated Share Repurchases [Line Items] | |||||
Common stock, shares authorized | 150,000,000 | 150,000,000 | |||
Common stock, par value | $ 0.01 | $ 0.01 | |||
Common stock, shares outstanding | 83,814,809 | 89,146,093 | |||
Shares available for grant | 4,311,886 | ||||
Authorized amount | $ 287,500,000 | $ 499,700,000 | $ 1,000,000 | ||
Remaining authorized repurchase amount | $ 244,200,000 | ||||
Common stock, quarterly dividends paid (in dollars per share) | $ 0.12 | $ 0.11 | $ 0.10 | ||
July 2012 Share Repurchase Program | |||||
Accelerated Share Repurchases [Line Items] | |||||
Authorized amount (in shares) | $ 50,000,000.0 | ||||
December 2013 ASR Program | |||||
Accelerated Share Repurchases [Line Items] | |||||
Authorized amount (in shares) | $ 500,000,000 | ||||
December 2014 ASR Program | |||||
Accelerated Share Repurchases [Line Items] | |||||
Authorized amount (in shares) | $ 500,000,000 | ||||
Accelerated Share Repurchase | |||||
Accelerated Share Repurchases [Line Items] | |||||
Authorized amount | $ 287,500,000 | $ 415,000,000 | |||
Purchases and retirement of common stock, shares | 5,541,930 | 8,248,183 | |||
Open Market Transaction | |||||
Accelerated Share Repurchases [Line Items] | |||||
Authorized amount | $ 84,700,000 | $ 1,000,000 | |||
Purchases and retirement of common stock, shares | 1,818,139 | 100,000.0 | |||
Purchases and retirement of common stock, average price (in dollars per share) | $ 46.60 | $ 49.34 | |||
Subsequent Event | |||||
Accelerated Share Repurchases [Line Items] | |||||
Common stock, quarterly dividends declared (in dollars per share) | $ 0.13 | ||||
Subsequent Event | Accelerated Share Repurchase | |||||
Accelerated Share Repurchases [Line Items] | |||||
Authorized amount | $ 60,000,000 | ||||
Purchases and retirement of common stock, shares | 974,619 |
Stockholders' Equity Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Accumulated other comprehensive loss, beginning of period | $ (906.5) | $ (510.7) |
Other comprehensive loss before reclassifications | (563.1) | (405.2) |
Net losses reclassified from accumulated other comprehensive loss | 9.4 | 9.4 |
Other comprehensive income (loss), net of reclassification adjustments | (553.7) | (395.8) |
Accumulated other comprehensive loss, end of period | (1,460.2) | (906.5) |
Defined Benefit Pension Plans | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Accumulated other comprehensive loss, beginning of period | (253.3) | (206.4) |
Other comprehensive loss before reclassifications | (2.4) | (54.8) |
Net losses reclassified from accumulated other comprehensive loss | 6.7 | 7.9 |
Other comprehensive income (loss), net of reclassification adjustments | 4.3 | (46.9) |
Accumulated other comprehensive loss, end of period | (249.0) | (253.3) |
Cumulative Translation Adjustment | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Accumulated other comprehensive loss, beginning of period | (653.1) | (304.1) |
Other comprehensive loss before reclassifications | (556.1) | (349.0) |
Net losses reclassified from accumulated other comprehensive loss | 0.0 | 0.0 |
Other comprehensive income (loss), net of reclassification adjustments | (556.1) | (349.0) |
Accumulated other comprehensive loss, end of period | (1,209.2) | (653.1) |
Deferred Net Gains (Losses) on Derivatives | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Accumulated other comprehensive loss, beginning of period | (0.1) | (0.2) |
Other comprehensive loss before reclassifications | (4.6) | (1.4) |
Net losses reclassified from accumulated other comprehensive loss | 2.7 | 1.5 |
Other comprehensive income (loss), net of reclassification adjustments | (1.9) | 0.1 |
Accumulated other comprehensive loss, end of period | $ (2.0) | $ (0.1) |
Stockholders' Equity Reclassification Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions |
12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||||
Cost of goods sold | $ 5,906.7 | $ 7,657.4 | $ 8,396.3 | |||||
Interest expense, net | 45.4 | 58.4 | 58.0 | |||||
Income before income taxes and equity in net earnings of affiliates | (279.4) | (539.0) | (802.6) | |||||
Income tax provision | 72.5 | 187.7 | 258.5 | |||||
Net income attributable to AGCO Corporation and subsidiaries | (266.4) | (410.4) | $ (597.2) | |||||
Amortization of net actuarial losses | (8.1) | (9.6) | ||||||
Amortization of prior service cost | (0.6) | (1.0) | ||||||
Reclassification out of Accumulated Other Comprehensive Income | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||||
Net income attributable to AGCO Corporation and subsidiaries | [1] | 9.4 | 9.4 | |||||
Reclassification out of Accumulated Other Comprehensive Income | Deferred Net Gains (Losses) on Derivatives | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||||
Cost of goods sold | [1] | 2.6 | 1.4 | |||||
Interest expense, net | [1] | 0.5 | 0.0 | |||||
Income before income taxes and equity in net earnings of affiliates | [1] | 3.1 | 1.4 | |||||
Income tax provision | [1] | (0.4) | 0.1 | |||||
Net income attributable to AGCO Corporation and subsidiaries | [1] | 2.7 | 1.5 | |||||
Reclassification out of Accumulated Other Comprehensive Income | Defined Benefit Pension Plans | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||||
Income before income taxes and equity in net earnings of affiliates | [1] | 8.7 | 10.6 | |||||
Income tax provision | [1] | (2.0) | (2.7) | |||||
Net income attributable to AGCO Corporation and subsidiaries | [1] | 6.7 | 7.9 | |||||
Amortization of net actuarial losses | [1],[2] | 8.1 | 9.6 | |||||
Amortization of prior service cost | [1],[2] | $ 0.6 | $ 1.0 | |||||
|
Stock Incentive Plan (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions |
4 Months Ended | 8 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|---|
Jan. 26, 2016 |
Apr. 23, 2015 |
Apr. 23, 2014 |
Dec. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Common stock, shares issuable | 150,000,000 | 150,000,000 | 150,000,000 | ||||
Compensation cost related to unearned performance awards | $ 10.1 | ||||||
Recognition period | 2 years | ||||||
Stock compensation expense | $ 12.5 | $ (10.6) | $ 34.9 | ||||
Excess tax benefit of stock awards | $ 0.7 | $ 11.4 | |||||
Shortfall in tax benefit of stock awards | $ 0.2 | ||||||
Shares available for grant | 4,311,886 | ||||||
Long Term Incentive Plan | Minimum | |||||||
Target award percentages | 33.00% | ||||||
Long Term Incentive Plan | Maximum | |||||||
Target award percentages | 200.00% | ||||||
Performance Shares | |||||||
Shares awarded | 861,686 | ||||||
Weighted average grant-date fair value of performance awards granted | $ 45.54 | $ 53.87 | $ 51.51 | ||||
Number of shares not vested | 2,481,767 | 1,449,396 | 2,481,767 | ||||
Shares earned | 0 | 286,804 | |||||
Shares issued subsequent to year-end | 0 | 173,470 | |||||
Performance Shares | Subsequent Event | |||||||
Shares awarded | 334,199 | ||||||
Restricted Stock Units (RSUs) | |||||||
Performance period | 3 years | ||||||
Shares awarded | 144,398 | ||||||
Compensation cost related to unearned performance awards | $ 4.2 | ||||||
Recognition period | 2 years | ||||||
Weighted average grant-date fair value of performance awards granted | $ 44.03 | ||||||
Number of shares not vested | 0 | 137,396 | 0 | ||||
Shares earned | 0 | ||||||
Restricted Stock Units (RSUs) | Subsequent Event | |||||||
Shares awarded | 138,975 | ||||||
Stock Appreciation Rights (SARs) | |||||||
Vesting period | 4 years | ||||||
Compensation cost related to unearned performance awards | $ 5.9 | ||||||
Recognition period | 2 years | ||||||
Weighted average grant-date fair value of performance awards granted | $ 7.41 | $ 13.11 | $ 21.10 | ||||
SSAR Expiration Period | 7 years | ||||||
Stock compensation expense | $ 5.0 | $ 5.2 | $ 4.7 | ||||
Weighted average remaining contractual life of SSARs outstanding, in years | 4 years | ||||||
Total fair value of SSARs vested | $ 4.2 | ||||||
Number of shares not vested | 709,771 | ||||||
Total intrinsic value of outstanding SSARs | $ 1.8 | ||||||
Total intrinsic value of exercisable of SSARs | 1.3 | ||||||
Total intrinsic value of SSARs exercised | $ 1.8 | ||||||
SSARs granted | 325,200 | ||||||
Stock Appreciation Rights (SARs) | Subsequent Event | |||||||
SSARs granted | 296,200 | ||||||
Restricted Stock | |||||||
Shares awarded | 22,095 | ||||||
Stock compensation expense | $ 1.1 | ||||||
Weighted-average period for compensation cost expected to be recognized, in years | 3 years | 1 year | |||||
Restricted common stocks issued | 15,711 | ||||||
Long Term Incentive Plan | |||||||
Performance period | 3 years | ||||||
2006 Plan | |||||||
Common stock, shares issuable | 10,000,000.0 |
Stock Incentive Plan (Performance Award Transactions) (Details) - Performance Shares - shares |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Share Activity | ||
Shares awarded but not earned at January 1 | 2,481,767 | |
Shares awarded | 861,686 | |
Shares forfeited or unearned | (1,894,057) | |
Shares earned | 0 | (286,804) |
Shares awarded but not earned at December 31 | 1,449,396 | 2,481,767 |
Stock Incentive Plan Stock Incentive Plan (Performance Awards Earned and Issued) (Details) - Performance Shares - shares |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Schedule of Share-based compensation arrangements by share-based payment award, performance shares earned and issued [Line Items] | ||
Shares earned | 0 | 286,804 |
Shares withheld for taxes on the earned awards | 113,334 | |
Shares issued subsequent to year-end | 0 | 173,470 |
Stock Incentive Plan (Weighted Average Grant-Date Fair Value Of SSARS And Assumptions Under Black-Scholes Option Model) (Details) - Stock Appreciation Rights (SARs) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value | $ 7.41 | $ 13.11 | $ 21.10 |
Expected life of awards (years) | 3 years | 3 years | 5 years 6 months |
Risk-free interest rate | 0.90% | 0.90% | 0.90% |
Expected volatility | 25.90% | 35.70% | 50.30% |
Expected dividend yield | 1.10% | 0.80% | 0.80% |
Stock Incentive Plan (SSAR Activity) (Details) - Stock Appreciation Rights (SARs) |
12 Months Ended |
---|---|
Dec. 31, 2015
$ / shares
shares
| |
Share Activity | |
SSARs outstanding, beginning of period | shares | 1,220,824 |
SSARs granted | shares | 325,200 |
SSARs exercised | shares | (75,850) |
SSARs canceled or forfeited | shares | (150,263) |
SSARs outstanding, end of period | shares | 1,319,911 |
Weighted average SSAR exercise prices per share, Granted | $ 43.88 |
Weighted average SSAR exercise prices per share, Exercised | 27.01 |
Weighted average SSAR exercise prices per share, Canceled or forfeited | 54.75 |
Weighted average SSAR exercise prices per share Outstanding at December 31 | $ 49.56 |
Minimum | |
Share Activity | |
SSAR price ranges per share, Granted | 43.88 |
SSAR price ranges per share, Exercised | 21.45 |
SSAR price ranges per share, Canceled | 43.88 |
Maximum | |
Share Activity | |
SSAR price ranges per share, Granted | 43.88 |
SSAR price ranges per share, Exercised | 52.94 |
SSAR price ranges per share, Canceled | 56.98 |
Stock Incentive Plan (Schedule Of SSAR Exercise Price Range, Number Of Shares, Weighted Average Exercise Price And Remaining Contractual Lives) (Details) - $ / shares |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Current Fiscal Year End Date | --12-31 | |
Stock Appreciation Rights (SARs) | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
SSARs Outstanding, Number of Shares | 1,319,911 | 1,220,824 |
SSARs Exercisable, Exercisable as of December 31 | 610,140 | |
SSARs Exercisable, Weighted Average Exercise Price | $ 49.54 | |
Stock Appreciation Rights (SARs) | $32.01 - $43.88 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Prices, lower limit | 32.01 | |
Range of Exercise Prices, upper limit | $ 43.88 | |
SSARs Outstanding, Number of Shares | 429,025 | |
SSAR Outstanding, Weighted Average Remaining Contractual Life (Years) | 4 years 9 months 18 days | |
SSARs Outstanding, Weighted Average Exercise Price | $ 41.25 | |
SSARs Exercisable, Exercisable as of December 31 | 112,650 | |
SSARs Exercisable, Weighted Average Exercise Price | $ 33.86 | |
Stock Appreciation Rights (SARs) | $47.89 - $63.64 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Prices, lower limit | 47.89 | |
Range of Exercise Prices, upper limit | $ 63.64 | |
SSARs Outstanding, Number of Shares | 890,886 | |
SSAR Outstanding, Weighted Average Remaining Contractual Life (Years) | 3 years 10 months 24 days | |
SSARs Outstanding, Weighted Average Exercise Price | $ 53.56 | |
SSARs Exercisable, Exercisable as of December 31 | 497,490 | |
SSARs Exercisable, Weighted Average Exercise Price | $ 53.09 |
Stock Incentive Plan (Details) - Restricted Stock Units (RSUs) - shares |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares not vested | 137,396 | 0 |
Shares awarded | 144,398 | |
Shares forfeited | (7,002) | |
Shares earned | 0 |
Derivative Instruments and Hedging Activities (Narrative) (Details) € in Millions |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2015
USD ($)
country
|
Dec. 31, 2014
USD ($)
|
Dec. 31, 2013
USD ($)
|
Dec. 31, 2015
EUR (€)
|
Dec. 31, 2012
USD ($)
|
|
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Number of countries where products sold (over) | country | 140 | ||||
Net losses reclassified from accumulated other comprehensive loss into income | $ (2,700,000) | $ (1,500,000) | $ (500,000) | ||
Accumulated derivative net losses | (2,000,000) | (100,000) | (200,000) | $ 700,000 | |
Notional amount of foreign currency derivatives | 1,533,900,000 | ||||
Cash Flow Hedging | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net losses reclassified from accumulated other comprehensive loss into income | 2,400,000 | 1,500,000 | 500,000 | ||
Accumulated derivative net losses | 100,000 | 100,000 | 200,000 | ||
Notional amount of foreign currency derivatives | 338,900,000 | € 312.0 | |||
Foreign Exchange Contract | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) on derivative instruments | (67,300,000) | (2,300,000) | $ 9,500,000 | ||
Designated as Hedging Instrument | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Notional amount of foreign currency derivatives | 23,800,000 | ||||
Designated as Hedging Instrument | Net Investment Hedging | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Notional amount of foreign currency derivatives | 338,900,000 | € 312.0 | |||
Ineffectiveness amount | 0 | ||||
Foreign currency gains included in cumulative translation adjustment | 7,500,000 | ||||
Not Designated as Hedging Instrument | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Notional amount of foreign currency derivatives | 1,533,900,000 | $ 1,810,500,000 | |||
Interest Rate Swap | Designated as Hedging Instrument | Cash Flow Hedging | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net losses reclassified from accumulated other comprehensive loss into income | $ 300,000 | ||||
Derivative, fixed interest rate | 0.33% | 0.33% | |||
Effective portion of the unrealized change in fair value, net of tax, loss | $ 2,000,000 | ||||
Ineffectiveness amount | 0 | ||||
Interest Rate Swap | Designated as Hedging Instrument | Fair Value Hedging | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Notional amount of foreign currency derivatives | $ 300,000,000 | ||||
Derivative, basis spread on variable rate | 4.135% | 4.135% | |||
Recorded unrealized gains on hedged debt | $ 2,600,000 | ||||
Unrealized losses on interest rate swaps | $ 2,600,000 |
Derivative Instruments and Hedging Activities (Summary Of Accumulated Other Comprehensive Loss Related To Derivatives) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Before-Tax Amount | |||
Accumulated derivative net gains (losses), beginning of period | $ (0.2) | $ (0.3) | $ 1.1 |
Net changes in fair value of derivatives | (6.2) | (1.3) | (2.1) |
Net losses reclassified from accumulated other comprehensive loss into income | 3.1 | 1.4 | 0.7 |
Accumulated derivative net gains (losses), end of period | (3.3) | (0.2) | (0.3) |
Income Tax | |||
Accumulated derivative net gains (losses), beginning of period | (0.1) | (0.1) | 0.4 |
Net changes in fair value of derivatives | (1.6) | 0.1 | (0.7) |
Net losses reclassified from accumulated other comprehensive loss into income | 0.4 | (0.1) | 0.2 |
Accumulated derivative net gains (losses), end of period | (1.3) | (0.1) | (0.1) |
After-Tax Amount | |||
Accumulated derivative net gains (losses), beginning of period | (0.1) | (0.2) | 0.7 |
Net changes in fair value of derivatives | (4.6) | (1.4) | (1.4) |
Net losses reclassified from accumulated other comprehensive loss into income | 2.7 | 1.5 | 0.5 |
Accumulated derivative net gains (losses), end of period | $ (2.0) | $ (0.1) | $ (0.2) |
Derivative Instruments and Hedging Activities ( Fair Value Of Derivative Instruments) (Details) - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Derivative assets | $ 4.8 | $ 11.3 |
Derivative liabilities | 13.8 | 20.5 |
Designated as Hedging Instrument | Interest Rate Contract | Other noncurrent assets | ||
Derivative assets | 0.0 | |
Designated as Hedging Instrument | Interest Rate Contract | Other noncurrent liabilities | ||
Derivative liabilities | 5.9 | |
Designated as Hedging Instrument | Foreign Exchange Contract | Other current assets | ||
Derivative assets | 0.0 | |
Designated as Hedging Instrument | Foreign Exchange Contract | Other current liabilities | ||
Derivative liabilities | 0.2 | |
Not Designated as Hedging Instrument | Foreign Exchange Contract | Other current assets | ||
Derivative assets | 4.8 | 11.3 |
Not Designated as Hedging Instrument | Foreign Exchange Contract | Other current liabilities | ||
Derivative liabilities | $ 7.9 | $ 20.3 |
Commitments and Contingencies (Details) BRL in Millions |
12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
Dec. 31, 2013
USD ($)
|
Dec. 31, 2015
BRL
|
||||||||
Interest payments related to indebtedness [Abstract] | |||||||||||
2016 | [1] | $ 52,200,000 | |||||||||
2017 | [1] | 20,200,000 | |||||||||
2018 | [1] | 17,400,000 | |||||||||
2019 | [1] | 15,600,000 | |||||||||
2020 | [1] | 13,400,000 | |||||||||
Thereafter | [1] | 9,900,000 | |||||||||
Total | [1] | 128,700,000 | |||||||||
Capital lease obligations [Abstract] | |||||||||||
2016 | 2,100,000 | ||||||||||
2017 | 900,000 | ||||||||||
2018 | 400,000 | ||||||||||
2019 | 0 | ||||||||||
2020 | 0 | ||||||||||
Thereafter | 0 | ||||||||||
Total | 3,400,000 | ||||||||||
Operating lease obligations [Abstract] | |||||||||||
2016 | 50,200,000 | ||||||||||
2017 | 33,500,000 | ||||||||||
2018 | 24,900,000 | ||||||||||
2019 | 12,600,000 | ||||||||||
2020 | 10,100,000 | ||||||||||
Thereafter | 43,000,000 | ||||||||||
Total | 174,300,000 | ||||||||||
Unconditional purchase obligations [Abstract] | |||||||||||
2016 | [2] | 71,100,000 | |||||||||
2017 | [2] | 10,500,000 | |||||||||
2018 | [2] | 6,000,000 | |||||||||
2019 | [2] | 100,000 | |||||||||
2020 | [2] | 0 | |||||||||
Thereafter | [2] | 0 | |||||||||
Total | [2] | 87,700,000 | |||||||||
Other short-term and long-term obligations [Abstract] | |||||||||||
2016 | [3] | 95,400,000 | |||||||||
2017 | [3] | 37,100,000 | |||||||||
2018 | [3] | 45,900,000 | |||||||||
2019 | [3] | 40,800,000 | |||||||||
2020 | [3] | 40,700,000 | |||||||||
Thereafter | [3] | 109,700,000 | |||||||||
Total | [3] | 369,600,000 | |||||||||
Total Contractual Cash Obligations [Abstract] | |||||||||||
2016 | 271,000,000 | ||||||||||
2017 | 102,200,000 | ||||||||||
2018 | 94,600,000 | ||||||||||
2019 | 69,100,000 | ||||||||||
2020 | 64,200,000 | ||||||||||
Thereafter | 162,600,000 | ||||||||||
Total | 763,700,000 | ||||||||||
Guarantees Future Expiration | |||||||||||
2016 | 63,200,000 | ||||||||||
2017 | 2,700,000 | ||||||||||
2018 | 1,600,000 | ||||||||||
2019 | 700,000 | ||||||||||
2020 | 100,000 | ||||||||||
Thereafter | 0 | ||||||||||
Total | 68,300,000 | ||||||||||
Guarantees [Abstract] | |||||||||||
Guaranteed indebtedness owed to third parties | 68,300,000 | ||||||||||
Notional amount of foreign currency derivatives | 1,533,900,000 | ||||||||||
Total lease expense | 77,200,000 | $ 91,400,000 | $ 83,600,000 | ||||||||
Loss Contingency [Abstract] | |||||||||||
Tax disallowance not including interest and penalties | 33,200,000 | BRL 131.5 | |||||||||
Retail Finance Joint Venture | |||||||||||
Guarantees [Abstract] | |||||||||||
Maximum inventory exposure per calendar year | $ 6,000,000 | ||||||||||
|
Fair Value of Financial Instrument (Details) - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 4.8 | $ 11.3 |
Derivative liabilities | 13.8 | 20.5 |
Long-term debt | 297.4 | |
Trading securities | 6.6 | |
5 7/8% Senior Notes due 2021 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 297.4 | 337.6 |
Long-term debt, carrying amount | 300.0 | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0.0 | 0.0 |
Derivative liabilities | 0.0 | 0.0 |
Long-term debt | 0.0 | |
Trading securities | 0.0 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 4.8 | 11.3 |
Derivative liabilities | 13.8 | 20.5 |
Long-term debt | 297.4 | |
Trading securities | 6.6 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0.0 | 0.0 |
Derivative liabilities | 0.0 | $ 0.0 |
Long-term debt | 0.0 | |
Trading securities | $ 0.0 |
Related Party Transactions (Details) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Related Party Transaction [Line Items] | |||
Investments in retail finance joint ventures | $ 3,800,000 | $ 3,900,000 | $ 10,000,000 |
Ownership percentage | 49.00% | ||
Rabobank | |||
Related Party Transaction [Line Items] | |||
Ownership interest of controlling interest | 51.00% | ||
Ownership percentage | 49.00% | ||
Finance joint ventures | |||
Related Party Transaction [Line Items] | |||
Investments in retail finance joint ventures | $ 0 | 0 | 15,500,000 |
TAFE | |||
Related Party Transaction [Line Items] | |||
Cost method investment, ownership percentage | 23.75% | ||
Beneficial Ownership of Related Parties, Shares | 12,150,152 | ||
Beneficial Ownership of Related Parties, Maximum Shares Allowed Per Letter Agreement | 12,170,290 | ||
Purchases from related party | $ 129,200,000 | 149,000,000 | 90,700,000 |
Revenue from Related Parties | 2,200,000 | 2,100,000 | 800,000 |
Dividends from Related Parties | 1,700,000 | 1,800,000 | 1,600,000 |
PPG Industries, Inc. | |||
Related Party Transaction [Line Items] | |||
Purchases from related party | $ 3,000,000 | $ 3,400,000 | $ 3,300,000 |
Segment Reporting (Sales Information By Reportable Segments) (Details) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015
USD ($)
segments
|
Dec. 31, 2014
USD ($)
|
Dec. 31, 2013
USD ($)
|
|
Number of reportable segments | segments | 4 | ||
Net sales | $ 7,467.3 | $ 9,723.7 | $ 10,786.9 |
Income from operations | 361.1 | 646.5 | 900.7 |
Depreciation | 217.4 | 239.4 | 211.6 |
Total assets | 6,501.3 | 7,368.8 | 8,395.8 |
Capital expenditures | 211.4 | 301.5 | 391.8 |
Operating Segments | |||
Net sales | 7,467.3 | 9,723.7 | 10,786.9 |
Income from operations | 546.9 | 841.9 | 1,097.3 |
Depreciation | 217.4 | 239.4 | 211.6 |
Total assets | 3,537.2 | 4,136.5 | 4,434.7 |
Capital expenditures | 211.4 | 301.5 | 391.8 |
North America | |||
Net sales | 1,965.0 | 2,414.2 | 2,757.8 |
Income from operations | 123.4 | 219.2 | 325.9 |
Depreciation | 62.7 | 60.1 | 51.4 |
Total assets | 943.7 | 1,026.9 | 1,002.8 |
Capital expenditures | 48.6 | 70.9 | 73.4 |
South America | |||
Net sales | 949.0 | 1,663.4 | 2,039.7 |
Income from operations | 34.4 | 134.0 | 212.7 |
Depreciation | 20.9 | 26.5 | 24.6 |
Total assets | 490.0 | 719.8 | 773.5 |
Capital expenditures | 28.6 | 45.6 | 66.4 |
Europe/ Africa/ Middle East | |||
Net sales | 4,151.3 | 5,158.5 | 5,481.5 |
Income from operations | 416.7 | 500.2 | 558.2 |
Depreciation | 122.4 | 138.7 | 126.6 |
Total assets | 1,757.2 | 2,036.0 | 2,368.9 |
Capital expenditures | 100.8 | 136.3 | 204.5 |
Asia/ Pacific | |||
Net sales | 402.0 | 487.6 | 507.9 |
Income from operations | (27.6) | (11.5) | 0.5 |
Depreciation | 11.4 | 14.1 | 9.0 |
Total assets | 346.3 | 353.8 | 289.5 |
Capital expenditures | $ 33.4 | $ 48.7 | $ 47.5 |
Segment Reporting (Income From Operations And Total Assets) (Details) - USD ($) $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2012 |
|
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Segment income from operations | $ 361.1 | $ 646.5 | $ 900.7 | |
Corporate expenses | (109.2) | (117.7) | (116.2) | |
Stock compensation (expense) credit | (12.5) | 10.6 | (34.9) | |
Restructuring and other infrequent expenses | (22.3) | (46.4) | 0.0 | |
Amortization of intangibles | (42.7) | (41.0) | (47.8) | |
Cash and cash equivalents | 426.7 | 363.7 | 1,047.2 | $ 781.3 |
Receivables from affiliates | 70.1 | 108.4 | 124.3 | |
Investment in affiliates | 392.9 | 424.1 | 416.1 | |
Deferred tax assets, other current and noncurrent assets | 452.2 | 589.5 | 629.2 | |
Intangible assets, net | 507.7 | 553.8 | 565.6 | |
Goodwill | 1,114.5 | 1,192.8 | 1,178.7 | $ 1,192.4 |
Total assets | 6,501.3 | 7,368.8 | 8,395.8 | |
Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Segment income from operations | 546.9 | 841.9 | 1,097.3 | |
Total assets | 3,537.2 | 4,136.5 | 4,434.7 | |
Selling, General and Administrative Expenses | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Stock compensation (expense) credit | $ (11.6) | $ 9.7 | $ (32.6) |
Segment Reporting (Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 7,467.3 | $ 9,723.7 | $ 10,786.9 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 1,624.0 | 1,985.4 | 2,216.5 |
Canada | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 233.6 | 333.9 | 419.4 |
Germany | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 913.2 | 1,240.0 | 1,301.0 |
France | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 762.6 | 828.4 | 1,136.8 |
United Kingdom and Ireland | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 414.5 | 490.8 | 471.8 |
Finland and Scandinavia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 637.0 | 808.4 | 828.5 |
Other Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 1,077.7 | 1,376.0 | 1,422.6 |
South America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 932.3 | 1,646.2 | 2,018.5 |
Middle East and Africa | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 346.4 | 414.9 | 320.7 |
Asia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 201.0 | 253.6 | 293.1 |
Australia and New Zealand | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 201.1 | 234.1 | 214.8 |
Mexico, Central America and Caribbean | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 123.9 | $ 112.0 | $ 143.2 |
Segment Reporting (Revenue from External Customers by Products and Services) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Revenue from External Customer [Line Items] | |||
Net sales | $ 7,467.3 | $ 9,723.7 | $ 10,786.9 |
Tractors | |||
Revenue from External Customer [Line Items] | |||
Net sales | 4,244.1 | 5,566.8 | 6,491.1 |
Replacement Parts | |||
Revenue from External Customer [Line Items] | |||
Net sales | 1,204.4 | 1,390.1 | 1,349.1 |
Other machinery | |||
Revenue from External Customer [Line Items] | |||
Net sales | 629.6 | 875.3 | 1,001.0 |
Grain Storage and Protein Production Systems | |||
Revenue from External Customer [Line Items] | |||
Net sales | 766.2 | 851.0 | 771.9 |
Combines | |||
Revenue from External Customer [Line Items] | |||
Net sales | 331.9 | 581.0 | 652.8 |
Application Equipment | |||
Revenue from External Customer [Line Items] | |||
Net sales | $ 291.1 | $ 459.5 | $ 521.0 |
Segment Reporting (Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country) (Details) - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment and amortizable intangible assets | $ 1,769.5 | $ 1,995.2 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment and amortizable intangible assets | 619.0 | 666.7 |
Finland | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment and amortizable intangible assets | 165.2 | 192.5 |
Germany | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment and amortizable intangible assets | 369.2 | 420.8 |
Brazil | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment and amortizable intangible assets | 143.6 | 204.1 |
Italy | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment and amortizable intangible assets | 88.3 | 101.8 |
China | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment and amortizable intangible assets | 150.0 | 138.7 |
France | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment and amortizable intangible assets | 68.3 | 83.2 |
Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment and amortizable intangible assets | $ 165.9 | $ 187.4 |
Subsequent Event (Details) - Feb. 02, 2016 € in Millions, $ in Millions |
USD ($) |
EUR (€) |
---|---|---|
Tecno Poultry Equipment | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Payments to acquire businesses | $ 58.4 | € 53.5 |
Schedule II - Valuation and Qualifying Account (Details) - USD ($) $ in Millions |
12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
||||||
Allowances for Sales Incentive Discounts | ||||||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||||||
Balance at Beginning of Period | $ 255.0 | [1] | $ 236.6 | [1] | $ 165.2 | |||
Additions, Acquired Businesses | 0.0 | 0.0 | 0.0 | |||||
Additions, Charged to Costs and Expenses | 195.1 | 300.7 | 374.6 | |||||
Deductions | (196.1) | (282.3) | (303.2) | |||||
Foreign Currency Translation | 0.0 | 0.0 | 0.0 | |||||
Balance at End of Period | [1] | 254.0 | 255.0 | 236.6 | ||||
Allowance for Doubtful Accounts | ||||||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||||||
Balance at Beginning of Period | 32.1 | 34.9 | 38.1 | |||||
Additions, Acquired Businesses | 0.0 | 0.5 | 0.0 | |||||
Additions, Charged to Costs and Expenses | 5.6 | 1.7 | 3.2 | |||||
Deductions | (3.0) | (1.2) | (5.0) | |||||
Foreign Currency Translation | (5.4) | (3.8) | (1.4) | |||||
Balance at End of Period | 29.3 | 32.1 | 34.9 | |||||
Accruals of Severance, Relocation and Other Integration Costs | ||||||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||||||
Balance at Beginning of Period | 25.4 | 0.0 | ||||||
Additions, Charged to Costs and Expenses | 23.0 | 44.4 | ||||||
Additions, Reversal of Accrual | (0.7) | 0.0 | ||||||
Deductions | (29.5) | (18.8) | ||||||
Foreign Currency Translation | (1.3) | (0.2) | ||||||
Balance at End of Period | 16.9 | 25.4 | 0.0 | |||||
Deferred Tax Asset Valuation Allowance | ||||||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||||||
Balance at Beginning of Period | 93.3 | 77.2 | 74.5 | |||||
Additions, Acquired Businesses | 0.0 | 0.0 | 0.0 | |||||
Additions, Charged (Credited) to Costs and Expenses | (4.5) | 22.8 | 9.3 | |||||
Deductions | 0.0 | 0.0 | (2.8) | |||||
Foreign Currency Translation | (13.0) | (6.7) | (3.8) | |||||
Balance at End of Period | 75.8 | 93.3 | $ 77.2 | |||||
Accrued Expense | Allowances for Sales Incentive Discounts | ||||||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||||||
Balance at Beginning of Period | [1] | 236.5 | ||||||
Balance at End of Period | [1] | 229.5 | 236.5 | |||||
Accounts Receivable Allowances | Allowances for Sales Incentive Discounts | ||||||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||||||
Balance at Beginning of Period | [1] | 18.5 | ||||||
Balance at End of Period | [1] | $ 24.5 | $ 18.5 | |||||
|
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