Changes in Stockholders' Equity

6 Months Ended

Jun. 30, 2022

Stockholders' Equity Note [Abstract]

Changes in Stockholders' Equity

CHANGES IN STOCKHOLDERS’ EQUITY

    The following tables set forth changes in stockholders’ equity attributed to AGCO Corporation and its subsidiaries and to noncontrolling interests for the three and six months ended June 30, 2022 (in millions):

	Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Noncontrolling Interests		Total Stockholders’ Equity
Balance, March 31, 2022	$	0.7	$	2.9	$	5,306.2	$	(1,635.0)	$	0.1	$	3,674.9
Stock compensation	—		10.6		—		—		—		10.6
Issuance of stock awards	—		(0.2)		—		—		—		(0.2)
SSARs exercised	—		—		—		—		—		—
Comprehensive income:
Net income (loss)	—		—		177.7		—		(0.1)		177.6
Other comprehensive loss, net of reclassification adjustments:
Foreign currency translation adjustments	—		—		—		(124.6)		0.1		(124.5)
Defined benefit pension plans, net of tax	—		—		—		1.7		—		1.7
Deferred gains and losses on derivatives, net of tax	—		—		—		(3.2)		—		(3.2)
Payment of dividends to stockholders	—		—		(353.6)		—		—		(353.6)
Distributions to noncontrolling interest	—		—		—		—		—		—
Balance, June 30, 2022	$	0.7	$	13.3	$	5,130.3	$	(1,761.1)	$	0.1	$	3,383.3

	Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Noncontrolling Interests		Total Stockholders’ Equity
Balance, December 31, 2021	$	0.7	$	3.9	$	5,182.2	$	(1,770.9)	$	27.9	$	3,443.8
Stock compensation	—		17.6		—		—		—		17.6
Issuance of stock awards	—		(7.2)		(12.9)		—		—		(20.1)
SSARs exercised	—		(1.0)		—		—		—		(1.0)
Comprehensive income:
Net income (loss)	—		—		329.5		—		(14.9)		314.6
Other comprehensive income, net of reclassification adjustments:
Foreign currency translation adjustments	—		—		—		12.9		0.9		13.8
Defined benefit pension plans, net of tax	—		—		—		3.4		—		3.4
Deferred gains and losses on derivatives, net of tax	—		—		—		(6.5)		—		(6.5)
Payment of dividends to stockholders	—		—		(368.5)		—		—		(368.5)
Distributions to noncontrolling interest	—		—		—		—		(13.8)		(13.8)
Balance, June 30, 2022	$	0.7	$	13.3	$	5,130.3	$	(1,761.1)	$	0.1	$	3,383.3

    The following tables set forth changes in stockholders’ equity attributed to AGCO Corporation and its subsidiaries and to noncontrolling interests for the three and six months ended June 30, 2021 (in millions):

	Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Noncontrolling Interests		Total Stockholders’ Equity
Balance, March 31, 2021	$	0.8	$	5.7	$	4,897.9	$	(1,817.9)	$	38.2	$	3,124.7
Stock compensation	—		8.4		—		—		—		8.4
SSARs exercised	—		(2.4)		—		—		—		(2.4)
Comprehensive income:
Net income	—		—		282.8		—		1.6		284.4
Other comprehensive income, net of reclassification adjustments:
Foreign currency translation adjustments	—		—		—		80.0		0.8		80.8
Defined benefit pension plans, net of tax	—		—		—		(6.0)		—		(6.0)
Deferred gains and losses on derivatives, net of tax	—		—		—		5.6		—		5.6
Payment of dividends to stockholders	—		—		(316.6)		—		—		(316.6)
Distributions to noncontrolling interest	—		—		—		—		(3.5)		(3.5)
Change in noncontrolling interest	—		—		—		—		(10.6)		(10.6)
Balance, June 30, 2021	$	0.8	$	11.7	$	4,864.1	$	(1,738.3)	$	26.5	$	3,164.8

	Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Noncontrolling Interests		Total Stockholders’ Equity
Balance, December 31, 2020	$	0.8	$	30.9	$	4,759.1	$	(1,810.8)	$	38.0	$	3,018.0
Stock compensation	—		15.2		—		—		—		15.2
Issuance of stock awards	—		(29.5)		—		—		—		(29.5)
SSARs exercised	—		(4.9)		—		—		—		(4.9)
Comprehensive income:
Net income	—		—		433.6		—		2.2		435.8
Other comprehensive income, net of reclassification adjustments:
Foreign currency translation adjustments	—		—		—		33.1		0.4		33.5
Defined benefit pension plans, net of tax	—		—		—		29.1		—		29.1
Deferred gains and losses on derivatives, net of tax	—		—		—		10.3		—		10.3
Payment of dividends to stockholders	—		—		(328.6)		—		—		(328.6)
Distributions to noncontrolling interest	—		—		—		—		(3.5)		(3.5)
Change in noncontrolling interest	—		—		—		—		(10.6)		(10.6)
Balance, June 30, 2021	$	0.8	$	11.7	$	4,864.1	$	(1,738.3)	$	26.5	$	3,164.8

    Total comprehensive income (loss) attributable to noncontrolling interests for the three and six months ended June 30, 2022 and 2021 was as follows (in millions):

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Net (loss) income	$	(0.1)	$	1.6	$	(14.9)	$	2.2
Other comprehensive income:
Foreign currency translation adjustments	0.1		0.8		0.9		0.4
Total comprehensive income (loss)	$	—	$	2.4	$	(14.0)	$	2.6

    The following table sets forth changes in accumulated other comprehensive loss by component, net of tax, attributed to AGCO Corporation and its subsidiaries for the six months ended June 30, 2022 (in millions):

	Defined Benefit Pension Plans		Deferred Net (Losses) Gains on Derivatives		Cumulative Translation Adjustment		Total
Accumulated other comprehensive loss, December 31, 2021	$	(230.4)	$	(0.4)	$	(1,540.1)	$	(1,770.9)
Other comprehensive income (loss) before reclassifications	—		(9.6)		12.9		3.3
Net losses reclassified from accumulated other comprehensive loss	3.4		3.1		—		6.5
Other comprehensive income (loss), net of reclassification adjustments	3.4		(6.5)		12.9		9.8
Accumulated other comprehensive loss, June 30, 2022	$	(227.0)	$	(6.9)	$	(1,527.2)	$	(1,761.1)

    The following table sets forth reclassification adjustments out of accumulated other comprehensive loss by component attributed to AGCO Corporation and its subsidiaries for the three months ended June 30, 2022 and 2021 (in millions):

	Amount Reclassified from Accumulated Other Comprehensive Loss				Affected Line Item within the Condensed Consolidated Statements of Operations
Details about Accumulated Other Comprehensive Loss Components	Three Months Ended June 30, 2022(1)		Three Months Ended June 30, 2021(1)
Derivatives:
Net losses on foreign currency contracts	$	2.6	$	3.5	Cost of goods sold
Net losses (gains) on commodity contracts	$	2.8	$	(1.9)	Cost of goods sold
Reclassification before tax	5.4		1.6
	(1.4)		(1.1)		Income tax provision
Reclassification net of tax	$	4.0	$	0.5
Defined benefit pension plans:
Amortization of net actuarial losses	$	2.2	$	3.4	Other expense, net(2)
Amortization of prior service cost	—		0.1		Other expense, net(2)
Reclassification before tax	2.2		3.5
	(0.5)		(1.5)		Income tax provision
Reclassification net of tax	$	1.7	$	2.0
Net losses reclassified from accumulated other comprehensive loss	$	5.7	$	2.5

(1) Losses (gains) included within the Condensed Consolidated Statements of Operations for the three months ended June 30, 2022 and 2021, respectively.

(2) These accumulated other comprehensive loss components are included in the computation of net periodic pension and postretirement benefit cost. See Note 15 for additional information on the Company’s defined benefit pension plans.

	Amount Reclassified from Accumulated Other Comprehensive Loss				Affected Line Item within the Condensed Consolidated Statements of Operations
Details about Accumulated Other Comprehensive Loss Components	Six Months Ended June 30, 2022(1)		Six Months Ended June 30, 2021(1)
Derivatives:
Net losses on foreign currency contracts	$	2.7	$	6.9	Cost of goods sold
Net losses (gains) on commodity contracts	1.5		(1.9)		Cost of goods sold
Reclassification before tax	4.2		5.0
	(1.1)		(0.8)		Income tax provision
Reclassification net of tax	$	3.1	$	4.2
Defined benefit pension plans:
Amortization of net actuarial losses	$	4.4	$	7.4	Other expense, net(2)
Amortization of prior service cost	0.2		0.6		Other expense, net(2)
Reclassification before tax	4.6		8.0
	(1.2)		(2.1)		Income tax provision
Reclassification net of tax(3)	$	3.4	$	5.9
Net losses reclassified from accumulated other comprehensive loss	$	6.5	$	10.1

(1) Losses (gains) included within the Condensed Consolidated Statements of Operations for the six months ended June 30, 2022 and 2021, respectively.

(2) These accumulated other comprehensive loss components are included in the computation of net periodic pension and postretirement benefit cost. See Note 15 for additional information on the Company’s defined benefit pension plans.

Share Repurchase Program

    In November 2021, the Company entered into an accelerated share repurchase (“ASR”) agreement with a financial institution to repurchase an aggregate of $60.0 million shares of its common stock. The Company received 393,733 shares in this transaction as of December 31, 2021. On January 19, 2022, the Company received an additional 113,824 shares upon final settlement of its November 2021 ASR agreement. All shares received under the ASR agreement were retired upon receipt, and the excess of the purchase price over par value per share was recorded to a combination of “Additional paid-in capital” and “Retained earnings” within the Company’s Condensed Consolidated Balance Sheets.

    During the three and six months ended June 30, 2022, the Company did not purchase any shares directly or enter into any accelerated share repurchase agreements. As of June 30, 2022, the remaining amount authorized to be repurchased under board-approved share repurchase authorizations was approximately $110.0 million, which has no expiration date.

Dividends

    On April 28, 2022, the Company's Board of Directors approved an increase to its quarterly dividend commencing in the second quarter of 2022 by 20% to $0.24 per common share and declared a special variable dividend of $4.50 per common share that was paid during the second quarter of 2022.