UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2021

OR

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from _________ to _________

Commission File Number: 001-12930

AGCO CORPORATION

(Exact name of Registrant as specified in its charter)

Delaware		58-1960019
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
4205 River Green Parkway
Duluth,	Georgia	30096
(Address of principal executive offices)		(Zip Code)

(770) 813-9200

(Registrants telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act
Title of Class	Trading Symbol	Name of exchange on which registered
Common stock	AGCO	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

☒ Yes o No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

☒ Yes o No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

☒ Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

As of August 2, 2021, there were 75,385,755 shares of the registrant’s common stock, par value of $0.01 per share, outstanding.

AGCO CORPORATION AND SUBSIDIARIES

INDEX

			Page Numbers
PART I. FINANCIAL INFORMATION:
Item 1.	Financial Statements (unaudited)
		Condensed Consolidated Balance Sheets as of June 30, 2021 and December 31, 2020	3
		Condensed Consolidated Statements of Operations for the Three Months Ended June 30, 2021 and 2020	4
		Condensed Consolidated Statements of Operations for the Six Months Ended June 30, 2021 and 2020	5
		Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended June 30, 2021 and 2020	6
		Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2021 and 2020	7
	Notes to Condensed Consolidated Financial Statements		8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		37
Item 3.	Quantitative and Qualitative Disclosures about Market Risk		47
Item 4.	Controls and Procedures		47
PART II. OTHER INFORMATION:
Item 1.	Legal Proceedings		48
Item 1A.	Risk Factors		48
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		48
Item 6.	Exhibits		49
SIGNATURES			50

PART I.        FINANCIAL INFORMATION

ITEM 1.    FINANCIAL STATEMENTS

AGCO CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited and in millions, except share amounts)

	June 30, 2021		December 31, 2020
ASSETS
Current Assets:
Cash and cash equivalents	$	500.2	$	1,119.1
Accounts and notes receivable, net	1,099.0		856.0
Inventories, net	2,667.0		1,974.4
Other current assets	462.0		418.9
Total current assets	4,728.2		4,368.4
Property, plant and equipment, net	1,474.6		1,508.5
Right-of-use lease assets	156.9		165.1
Investment in affiliates	475.4		442.7
Deferred tax assets	118.8		77.6
Other assets	197.6		179.8
Intangible assets, net	417.5		455.6
Goodwill	1,294.3		1,306.5
Total assets	$	8,863.3	$	8,504.2
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Current portion of long-term debt	$	315.7	$	325.9
Short-term borrowings	55.8		33.8
Accounts payable	1,141.2		855.1
Accrued expenses	1,882.6		1,916.7
Other current liabilities	224.0		231.3
Total current liabilities	3,619.3		3,362.8
Long-term debt, less current portion and debt issuance costs	1,206.4		1,256.7
Operating lease liabilities	117.7		125.9
Pension and postretirement health care benefits	219.8		253.4
Deferred tax liabilities	115.0		112.4
Other noncurrent liabilities	420.3		375.0
Total liabilities	5,698.5		5,486.2
Commitments and contingencies (Note 17.)
Stockholders’ Equity:
AGCO Corporation stockholders’ equity:
Preferred stock; $0.01 par value, 1,000,000 shares authorized, no shares issued or outstanding in 2021 and 2020	—		—
Common stock; $0.01 par value, 150,000,000 shares authorized, 75,385,755 and 74,962,231 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively	0.8		0.8
Additional paid-in capital	11.7		30.9
Retained earnings	4,864.1		4,759.1
Accumulated other comprehensive loss	(1,738.3)		(1,810.8)
Total AGCO Corporation stockholders’ equity	3,138.3		2,980.0
Noncontrolling interests	26.5		38.0
Total stockholders’ equity	3,164.8		3,018.0
Total liabilities and stockholders’ equity	$	8,863.3	$	8,504.2

See accompanying notes to condensed consolidated financial statements.

3

AGCO CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited and in millions, except per share data)

	Three Months Ended June 30,
	2021		2020
Net sales	$	2,879.3	$	2,006.8
Cost of goods sold	2,186.9		1,574.1
Gross profit	692.4		432.7
Selling, general and administrative expenses	276.3		219.5
Operating expenses:
Engineering expenses	107.2		75.8
Amortization of intangibles	14.2		14.9
Goodwill impairment charge	—		20.0
Restructuring expenses	4.7		3.8
Bad debt (credit) expense	(0.3)		1.4
Income from operations	290.3		97.3
Interest expense, net	2.2		6.1
Other expense, net	14.6		10.0
Income before income taxes and equity in net earnings of affiliates	273.5		81.2
Income tax provision	7.7		31.3
Income before equity in net earnings of affiliates	265.8		49.9
Equity in net earnings of affiliates	18.6		10.1
Net income	284.4		60.0
Net (income) loss attributable to noncontrolling interests	(1.6)		9.7
Net income attributable to AGCO Corporation and subsidiaries	$	282.8	$	69.7
Net income per common share attributable to AGCO Corporation and subsidiaries:
Basic	$	3.74	$	0.93
Diluted	$	3.73	$	0.93
Cash dividends declared and paid per common share	$	4.17	$	0.16
Weighted average number of common and common equivalent shares outstanding:
Basic	75.5		74.9
Diluted	75.9		75.2

See accompanying notes to condensed consolidated financial statements.

4

AGCO CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited and in millions, except per share data)

	Six Months Ended June 30,
	2021		2020
Net sales	$	5,258.0	$	3,935.1
Cost of goods sold	3,995.1		3,051.9
Gross profit	1,262.9		883.2
Selling, general and administrative expenses	536.9		467.1
Operating expenses:
Engineering expenses	203.5		160.7
Amortization of intangibles	31.7		29.9
Goodwill impairment charge	—		20.0
Restructuring expenses	6.0		4.6
Bad debt (credit) expense	(0.7)		3.2
Income from operations	485.5		197.7
Interest expense, net	5.6		9.5
Other expense, net	26.1		22.5
Income before income taxes and equity in net earnings of affiliates	453.8		165.7
Income tax provision	51.3		60.7
Income before equity in net earnings of affiliates	402.5		105.0
Equity in net earnings of affiliates	33.3		21.3
Net income	435.8		126.3
Net (income) loss attributable to noncontrolling interests	(2.2)		8.1
Net income attributable to AGCO Corporation and subsidiaries	$	433.6	$	134.4
Net income per common share attributable to AGCO Corporation and subsidiaries:
Basic	$	5.75	$	1.79
Diluted	$	5.71	$	1.78
Cash dividends declared and paid per common share	$	4.33	$	0.32
Weighted average number of common and common equivalent shares outstanding:
Basic	75.4		75.1
Diluted	75.9		75.6

See accompanying notes to condensed consolidated financial statements.

5

AGCO CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(unaudited and in millions)

	Three Months Ended June 30,
	2021		2020
Net income	$	284.4	$	60.0
Other comprehensive income (loss), net of reclassification adjustments:
Foreign currency translation adjustments	80.8		(30.3)
Defined benefit pension plans, net of tax	(6.0)		3.4
Deferred gains and losses on derivatives, net of tax	5.6		(4.4)
Other comprehensive income (loss), net of reclassification adjustments	80.4		(31.3)
Comprehensive income	364.8		28.7
Comprehensive (income) loss attributable to noncontrolling interests	(2.4)		7.2
Comprehensive income attributable to AGCO Corporation and subsidiaries	$	362.4	$	35.9

	Six Months Ended June 30,
	2021		2020
Net income	$	435.8	$	126.3
Other comprehensive income (loss), net of reclassification adjustments:
Foreign currency translation adjustments	33.5		(245.1)
Defined benefit pension plans, net of tax	29.1		6.9
Deferred gains and losses on derivatives, net of tax	10.3		5.0
Other comprehensive income (loss), net of reclassification adjustments	72.9		(233.2)
Comprehensive income (loss)	508.7		(106.9)
Comprehensive (income) loss attributable to noncontrolling interests	(2.6)		11.3
Comprehensive income (loss) attributable to AGCO Corporation and subsidiaries	$	506.1	$	(95.6)

See accompanying notes to condensed consolidated financial statements.

6

AGCO CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited and in millions)

	Six Months Ended June 30,
	2021		2020
Cash flows from operating activities:
Net income	$	435.8	$	126.3
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation	109.9		102.3
Amortization of intangibles	31.7		29.9
Stock compensation expense	15.2		12.7
Goodwill impairment charge	—		20.0
Equity in net earnings of affiliates, net of cash received	(32.6)		(20.7)
Deferred income tax (benefit) provision	(65.5)		2.8
Other	9.2		11.2
Changes in operating assets and liabilities:
Accounts and notes receivable, net	(265.5)		(181.0)
Inventories, net	(721.5)		(210.6)
Other current and noncurrent assets	(73.3)		(62.3)
Accounts payable	320.5		(60.9)
Accrued expenses	(0.8)		(67.9)
Other current and noncurrent liabilities	112.0		76.6
Total adjustments	(560.7)		(347.9)
Net cash used in operating activities	(124.9)		(221.6)
Cash flows from investing activities:
Purchases of property, plant and equipment	(120.6)		(117.5)
Proceeds from sale of property, plant and equipment	2.4		0.5
Investments in unconsolidated affiliates	(1.0)		(3.1)
(Purchase) sale of businesses, net of cash acquired	5.4		—
Other	(2.4)		—
Net cash used in investing activities	(116.2)		(120.1)
Cash flows from financing activities:
Proceeds from indebtedness	909.4		1,136.5
Repayments of indebtedness	(905.4)		(708.9)
Purchases and retirement of common stock	—		(55.0)
Payment of dividends to stockholders	(328.6)		(24.0)
Payment of minimum tax withholdings on stock compensation	(33.6)		(16.1)
Payment of debt issuance costs	—		(1.4)
Distributions to noncontrolling interest	(3.5)		—
Net cash (used in) provided by financing activities	(361.7)		331.1
Effects of exchange rate changes on cash, cash equivalents and restricted cash	(16.1)		(17.8)
Decrease in cash, cash equivalents and restricted cash	(618.9)		(28.4)
Cash, cash equivalents and restricted cash, beginning of period	1,119.1		432.8
Cash, cash equivalents and restricted cash, end of period	$	500.2	$	404.4

See accompanying notes to condensed consolidated financial statements.

7

AGCO CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

1.    BASIS OF PRESENTATION

    The condensed consolidated financial statements of AGCO Corporation and its subsidiaries (the “Company” or “AGCO”) included herein have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary to present fairly the Company’s financial position, results of operations, comprehensive income (loss) and cash flows at the dates and for the periods presented. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Results for interim periods are not necessarily indicative of the results for the year. Certain prior period amounts have been reclassified to conform to the current period presentation.

    The Company cannot predict the future impact of the COVID-19 pandemic on its business, including any related impacts of the increased volatility in global economic and political environments, uncertain market demand for its products, supply chain disruptions, possible workforce unavailability, exchange rate and commodity price volatility and availability of financing, and their impact to the Company’s net sales, production volumes, costs and overall financial condition and available funding.

Recently Adopted Accounting Pronouncements

    During the six months ended June 30, 2021, the Company adopted the following pronouncements, which did not have a material impact to the Company’s results of operations, financial condition and cash flows.

•ASU 2019-12 – “Simplifying the Accounting for Income Taxes” was adopted as of January 1, 2021.

•ASU 2021-01 – “Reference Rate Reform: Scope” was adopted as of January 1, 2021.

New Accounting Pronouncements to be Adopted

    In June 2016, the FASB issued ASU 2016-13 “Financial Instruments - Credit Losses (Topic 326):Measurement of Credit Losses on Financial Instruments”, which requires measurement and recognition of expected versus incurred credit losses for financial assets. In November 2019, the FASB issued ASU 2019-10, “Financial Instruments - Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates,” which delays the effective date of ASU 2016-13 for smaller reporting companies and other non-SEC reporting entities. This applies to the Company’s equity method finance joint ventures, who are now required to adopt ASU 2016-13 for annual periods beginning after December 15, 2022 and interim periods within those annual periods. The standard, and its subsequent modification, will likely impact the results of operations and financial condition of the Company’s finance joint ventures. Therefore, adoption of the standard by the Company’s finance joint ventures likely will impact the Company’s “Investment in affiliates” and “Equity in net earnings of affiliates.” The Company’s finance joint ventures currently are evaluating the impact of ASU 2016-13 to their results of operations and financial condition.

2.    RESTRUCTURING EXPENSES

    In recent years, the Company has announced and initiated several actions to rationalize employee headcount in various manufacturing facilities and administrative offices located in the U.S., Europe, South America, Africa and China in order to reduce costs in response to softening global demand. Restructuring expenses activity during the three and six months ended June 30, 2021 is summarized as follows (in millions):

8

Notes to Condensed Consolidated Financial Statements - Continued

(unaudited)

	Employee Severance		Facility Closure Costs		Other Related Closure Costs		Total
Balance as of December 31, 2020	$	11.1	$	3.9	$	1.8	$	16.8
First quarter 2021 provision	1.3		—		—		1.3
First quarter 2021 cash activity	(2.3)		(3.9)		—		(6.2)
Foreign currency translation	(0.1)		—		(0.2)		(0.3)
Balance as of March 31, 2021	$	10.0	$	—	$	1.6	$	11.6
Second quarter 2021 provision	3.9		—		1.5		5.4
Second quarter 2021 cash activity	(1.9)		—		(0.7)		(2.6)
Second quarter 2021 provision reversal	(0.7)		—		—		(0.7)
Foreign currency translation	—		—		0.2		0.2
Balance as of June 30, 2021	$	11.3	$	—	$	2.6	$	13.9

3.    STOCK COMPENSATION PLANS

    The Company recorded stock compensation expense as follows for the three and six months ended June 30, 2021 and 2020 (in millions):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Cost of goods sold	$	0.3	$	0.3	$	0.6	$	0.4
Selling, general and administrative expenses	8.2		10.1		14.7		12.6
Total stock compensation expense	$	8.5	$	10.4	$	15.3	$	13.0

Stock Incentive Plan

    Under the Company’s Long-Term Incentive Plan (the “Plan”), up to 10,000,000 shares of AGCO common stock may be issued. As of June 30, 2021, of the 10,000,000 shares reserved for issuance under the Plan, approximately 3,859,466 shares were available for grant, assuming the maximum number of shares are earned related to the performance award grants discussed below. The Plan allows the Company, under the direction of the Board of Directors’ Talent and Compensation Committee, to make grants of performance shares, stock appreciation rights, 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 weighted average grant-date fair value of performance awards granted under the Plan during the six months ended June 30, 2021 and 2020 was $123.26 and $70.84, respectively.

    During the six months ended June 30, 2021, the Company granted 269,508 performance awards related to varying performance periods. The awards granted assume the maximum target levels of performance are achieved. The compensation expense associated with all awards granted under the Plan is amortized ratably over the vesting or performance period based on the Company’s projected assessment of the level of performance that will be achieved. The 2021 grant of performance award shares is subject to a total shareholder return modifier.

9

Notes to Condensed Consolidated Financial Statements - Continued

(unaudited)

    Performance award transactions during the six months ended June 30, 2021 are presented as if the Company were to achieve its maximum levels of performance and assume the 2021 performance awards subject to the total shareholder return modifier are achieved at target levels under the plan awards, and were as follows:

Shares awarded but not earned at January 1	582,952
Shares awarded	269,508
Shares forfeited	(8,760)
Shares earned	(142)
Shares awarded but not earned at June 30	843,558

    As of June 30, 2021, 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, was approximately $35.3 million, and the weighted average period over which it is expected to be recognized is approximately two years. The compensation cost not yet recognized could be higher or lower based on actual achieved levels of performance.

Restricted Stock Unit Awards

The weighted average grant-date fair value of the restricted stock units ("RSUs") granted under the Plan during the six months ended June 30, 2021 and 2020 was $113.63 and $70.83, respectively.

During the six months ended June 30, 2021, the Company granted 89,892 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. The 2020 grant of RSU’s to certain executives had a three-year cliff vesting requirement subject to adjustment based on total shareholders return metric relative to the Company's defined peer group. The compensation expense associated with these awards is being amortized ratably over the requisite service period for the awards that are expected to vest.

RSU transactions during the six months ended June 30, 2021 assume the 2020 RSUs subject to the total shareholder return modifier are achieved at target levels, and were as follows:

RSUs awarded but not vested at January 1	143,287
RSUs awarded	89,892
RSUs forfeited	(1,615)
RSUs vested	(63,397)
RSUs awarded but not vested at June 30	168,167

    As of June 30, 2021, the total compensation cost related to the unvested RSUs not yet recognized was approximately $12.0 million, and the weighted average period over which it is expected to be recognized is approximately one and one-half years.

Stock-Settled Appreciation Rights

    The compensation expense associated with the stock-settled appreciation rights (“SSARs”) is amortized ratably over the requisite service period for the awards that are expected to vest. The Company estimates the fair value of the grants using the Black-Scholes option pricing model. SSAR transactions during the six months ended June 30, 2021 were as follows:

SSARs outstanding at January 1	403,150
SSARs granted	—
SSARs exercised	(173,243)
SSARs canceled or forfeited	(754)
SSARs outstanding at June 30	229,153

    The Company did not grant any SSARs during the six months ended June 30, 2021, and does not currently anticipate granting any SSARs in the future. As of June 30, 2021, the total compensation cost related to the unvested SSARs not yet

10

Notes to Condensed Consolidated Financial Statements - Continued

(unaudited)

recognized was approximately $1.3 million, and the weighted average period over which it is expected to be recognized is approximately two years.

Director Restricted Stock Grants

    The Plan provides for annual restricted stock grants of the Company’s common stock to all non-employee directors. The 2021 grant was made on April 22, 2021 and equated to 9,117 shares of common stock, of which 7,899 shares of common stock were issued after shares were withheld for taxes. The Company recorded stock compensation expense of approximately $1.4 million during the six months ended June 30, 2021 associated with these grants.

4.    GOODWILL AND OTHER INTANGIBLE ASSETS

    Changes in the carrying amount of goodwill during the six months ended June 30, 2021 are summarized as follows (in millions):

	North America		South America		Europe/Middle East		Asia/Pacific/Africa		Consolidated
Balance as of December 31, 2020	$	593.4	$	87.5	$	501.3	$	124.3	$	1,306.5
Foreign currency translation	0.2		3.4		(13.5)		(2.3)		(12.2)
Balance as of June 30, 2021	$	593.6	$	90.9	$	487.8	$	122.0	$	1,294.3

    Goodwill is tested for impairment on an annual basis and more often if indications of impairment exist. The Company conducts its annual impairment analyses as of October 1 each fiscal year. As of June 30, 2020, the Company concluded there were indicators of impairment during the three months ended June 30, 2020 related to one of its smaller reporting units, which is a 50%-owned tillage and seeding joint venture. As a result, an impairment of the entire goodwill balance of this reporting unit was necessary as of June 30, 2020. During the three months ended June 30, 2020, a non-cash impairment charge of approximately $20.0 million was recorded as "Impairment charges" within the Company's Condensed Consolidated Statements of Operations, with an offsetting benefit of approximately $10.0 million included within "Net loss attributable to noncontrolling interests." During the three months ended June 30, 2021, the Company sold its 50% interest in the joint venture.

11

Notes to Condensed Consolidated Financial Statements - Continued

(unaudited)

    Changes in the carrying amount of acquired intangible assets during the six months ended June 30, 2021 are summarized as follows (in millions):

Gross carrying amounts:	Trademarks and Tradenames		Customer Relationships		Patents and Technology		Land Use Rights		Total
Balance as of December 31, 2020	$	206.0	$	585.4	$	158.0	$	9.1	$	958.5
Sale of business	(1.3)		(4.4)		(17.1)		—		(22.8)
Foreign currency translation	(2.1)		(2.7)		(2.6)		0.1		(7.3)
Balance as of June 30, 2021	$	202.6	$	578.3	$	138.3	$	9.2	$	928.4

Accumulated amortization:	Trademarks and Tradenames		Customer Relationships		Patents and Technology		Land Use Rights		Total
Balance as of December 31, 2020	$	95.4	$	390.3	$	103.2	$	3.4	$	592.3
Amortization expense	5.0		18.6		8.0		0.1		31.7
Sale of business	(1.3)		(4.4)		(15.2)		—		(20.9)
Foreign currency translation	(0.5)		(1.6)		(2.0)		0.1		(4.0)
Balance as of June 30, 2021	$	98.6	$	402.9	$	94.0	$	3.6	$	599.1

Indefinite-lived intangible assets:	Trademarks and Tradenames
Balance as of December 31, 2020	$	89.4
Foreign currency translation	(1.2)
Balance as of June 30, 2021	$	88.2

The Company currently amortizes certain acquired intangible assets, primarily on a straight-line basis, over their estimated useful lives, which range from five to 50 years.

12

Notes to Condensed Consolidated Financial Statements - Continued

(unaudited)

5.    INDEBTEDNESS

    Long-term debt consisted of the following at June 30, 2021 and December 31, 2020 (in millions):

	June 30, 2021		December 31, 2020
Senior term loan due 2022	$	178.1	$	184.0
Credit facility, expires 2023	260.0		277.9
1.002% Senior term loan due 2025	296.8		306.7
Senior term loans due between 2021 and 2028	779.9		806.0
Other long-term debt	9.1		10.5
Debt issuance costs	(1.8)		(2.5)
	1,522.1		1,582.6
Senior term loans due 2021, net of debt issuance costs	(313.4)		(323.6)
Current portion of other long-term debt	(2.3)		(2.3)
Total long-term indebtedness, less current portion	$	1,206.4	$	1,256.7

Senior Term Loan Due 2022

    In October 2018, the Company entered into a term loan agreement with Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (“Rabobank”) in the amount of €150.0 million (or approximately $178.1 million as of June 30, 2021). The Company is permitted to prepay the term loan before its maturity date of October 28, 2022. Interest is payable on the term loan quarterly in arrears at an annual rate equal to the Euro Interbank Offered Rate (“EURIBOR”) plus a margin ranging from 0.875% to 1.875% based on the Company’s credit rating.

Credit Facility

    In October 2018, the Company entered into a multi-currency revolving credit facility of $800.0 million. The credit facility expires on October 17, 2023. Interest accrues on amounts outstanding under the credit facility, at the Company’s option, at either (1) LIBOR plus a margin ranging from 0.875% to 1.875% based on the Company’s credit rating, 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 0.875% based on the Company’s credit rating. As of June 30, 2021 the Company had $260.0 million outstanding borrowings under the revolving credit facility and had the ability to borrow approximately $540.0 million under the revolving credit facility. As of December 31, 2020 the Company had no outstanding borrowings under the revolving credit facility and had the ability to borrow approximately $800.0 million under the facility.

    On April 9, 2020, the Company entered into an amendment to its credit facility to include incremental term loans (“2020 term loans”) that allow the Company to borrow aggregate principal amounts of €235.0 million and $267.5 million (or an aggregate of approximately $546.5 million as of June 30, 2021). Amounts can be drawn incrementally at any time prior to maturity, but must be drawn down proportionately. Amounts drawn must be in a minimum principal amount of $100.0 million and integral multiples of $50.0 million in excess thereof. Once amounts have been repaid, those amounts are not permitted to be re-drawn. The maturity date of the 2020 term loans is April 8, 2022. Interest accrues on amounts outstanding under the 2020 term loans, at the Company's option, at either (1) LIBOR plus a margin based on the Company's credit rating ranging from