0000088205-22-000021.txt : 20220506 0000088205-22-000021.hdr.sgml : 20220506 20220504175812 ACCESSION NUMBER: 0000088205-22-000021 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 95 CONFORMED PERIOD OF REPORT: 20220402 FILED AS OF DATE: 20220505 DATE AS OF CHANGE: 20220504 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SPX CORP CENTRAL INDEX KEY: 0000088205 STANDARD INDUSTRIAL CLASSIFICATION: METALWORKING MACHINERY & EQUIPMENT [3540] IRS NUMBER: 381016240 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-06948 FILM NUMBER: 22893074 BUSINESS ADDRESS: STREET 1: 6325 ARDREY KELL ROAD STREET 2: SUITE 400 CITY: CHARLOTTE STATE: NC ZIP: 28277 BUSINESS PHONE: 980-474-3700 MAIL ADDRESS: STREET 1: 6325 ARDREY KELL ROAD STREET 2: SUITE 400 CITY: CHARLOTTE STATE: NC ZIP: 28277 FORMER COMPANY: FORMER CONFORMED NAME: SEALED POWER CORP DATE OF NAME CHANGE: 19880515 10-Q 1 spxc-20220402.htm 10-Q spxc-20220402
0000088205false12/312022Q1P6YP5YP7YP3Y00000882052022-01-012022-04-0200000882052022-04-29xbrli:sharesiso4217:USD00000882052021-01-012021-04-03iso4217:USDxbrli:shares00000882052022-04-0200000882052021-12-310000088205us-gaap:CommonStockMember2021-12-310000088205us-gaap:AdditionalPaidInCapitalMember2021-12-310000088205us-gaap:RetainedEarningsMember2021-12-310000088205us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310000088205us-gaap:TreasuryStockMember2021-12-310000088205us-gaap:RetainedEarningsMember2022-01-012022-04-020000088205us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-04-020000088205us-gaap:AdditionalPaidInCapitalMember2022-01-012022-04-020000088205us-gaap:TreasuryStockMember2022-01-012022-04-020000088205us-gaap:CommonStockMember2022-04-020000088205us-gaap:AdditionalPaidInCapitalMember2022-04-020000088205us-gaap:RetainedEarningsMember2022-04-020000088205us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-020000088205us-gaap:TreasuryStockMember2022-04-020000088205us-gaap:CommonStockMember2020-12-310000088205us-gaap:AdditionalPaidInCapitalMember2020-12-310000088205us-gaap:RetainedEarningsMember2020-12-310000088205us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310000088205us-gaap:TreasuryStockMember2020-12-3100000882052020-12-310000088205us-gaap:RetainedEarningsMember2021-01-012021-04-030000088205us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-04-030000088205us-gaap:AdditionalPaidInCapitalMember2021-01-012021-04-030000088205us-gaap:TreasuryStockMember2021-01-012021-04-030000088205us-gaap:CommonStockMember2021-04-030000088205us-gaap:AdditionalPaidInCapitalMember2021-04-030000088205us-gaap:RetainedEarningsMember2021-04-030000088205us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-030000088205us-gaap:TreasuryStockMember2021-04-0300000882052021-04-030000088205spxc:TransformerSolutionsMemberus-gaap:DiscontinuedOperationsDisposedOfBySaleMember2022-01-012022-04-020000088205us-gaap:ProductConcentrationRiskMemberspxc:SPXTransformerSolutionsIncMemberus-gaap:SalesRevenueNetMember2021-06-082021-06-08xbrli:purespxc:project0000088205spxc:SealiteMember2021-04-192021-04-190000088205spxc:EnterpriseControlSystemsLtdMember2021-08-022021-08-020000088205spxc:EnterpriseControlSystemsLtdMember2021-08-020000088205spxc:EnterpriseControlSystemsLtdMember2021-10-032021-12-310000088205spxc:EnterpriseControlSystemsLtdMember2022-01-012022-04-020000088205spxc:EnterpriseControlSystemsLtdMember2022-04-020000088205spxc:EnterpriseControlSystemsLtdMember2021-12-310000088205spxc:CincinnatiFanMember2021-12-152021-12-150000088205spxc:InternationalTowerLightingLLCMember2022-03-312022-03-310000088205spxc:TransformerSolutionsBusinessMemberus-gaap:SegmentDiscontinuedOperationsMember2021-01-012021-04-030000088205us-gaap:SegmentDiscontinuedOperationsMemberspxc:DBTTechnologiesMember2021-01-012021-04-030000088205spxc:DBTTechnologiesMemberus-gaap:DiscontinuedOperationsDisposedOfBySaleMember2022-04-020000088205spxc:DBTTechnologiesMemberus-gaap:DiscontinuedOperationsDisposedOfBySaleMember2021-12-310000088205spxc:DBTTechnologiesMemberus-gaap:DiscontinuedOperationsDisposedOfBySaleMemberspxc:BuildingsAndLeaseholdImprovementsMember2022-04-020000088205spxc:DBTTechnologiesMemberus-gaap:DiscontinuedOperationsDisposedOfBySaleMemberspxc:BuildingsAndLeaseholdImprovementsMember2021-12-310000088205spxc:DBTTechnologiesMemberus-gaap:DiscontinuedOperationsDisposedOfBySaleMemberus-gaap:MachineryAndEquipmentMember2022-04-020000088205spxc:DBTTechnologiesMemberus-gaap:DiscontinuedOperationsDisposedOfBySaleMemberus-gaap:MachineryAndEquipmentMember2021-12-310000088205spxc:SPXHeatTransferBusinessMemberus-gaap:DiscontinuedOperationsDisposedOfBySaleMember2022-04-020000088205spxc:SPXHeatTransferBusinessMemberus-gaap:DiscontinuedOperationsDisposedOfBySaleMember2021-12-310000088205us-gaap:SegmentDiscontinuedOperationsMemberspxc:TransformerSolutionsMember2022-01-012022-04-020000088205us-gaap:SegmentDiscontinuedOperationsMemberspxc:TransformerSolutionsMember2021-01-012021-04-030000088205us-gaap:SegmentDiscontinuedOperationsMemberspxc:DBTTechnologiesIncludingCTAWriteOffMember2022-01-012022-04-020000088205us-gaap:SegmentDiscontinuedOperationsMemberspxc:DBTTechnologiesIncludingCTAWriteOffMember2021-01-012021-04-030000088205spxc:SPXHeatTransferBusinessMemberus-gaap:SegmentDiscontinuedOperationsMember2022-01-012022-04-020000088205spxc:SPXHeatTransferBusinessMemberus-gaap:SegmentDiscontinuedOperationsMember2021-01-012021-04-030000088205us-gaap:SegmentDiscontinuedOperationsMemberspxc:ALLOtherDiscontinuedOperationsMember2022-01-012022-04-020000088205us-gaap:SegmentDiscontinuedOperationsMemberspxc:ALLOtherDiscontinuedOperationsMember2021-01-012021-04-030000088205us-gaap:SegmentDiscontinuedOperationsMember2022-01-012022-04-020000088205us-gaap:SegmentDiscontinuedOperationsMember2021-01-012021-04-030000088205spxc:PackageAndProcessCoolingEquipmentAndServicesMemberspxc:HVACReportableSegmentMember2022-01-012022-04-020000088205spxc:PackageAndProcessCoolingEquipmentAndServicesMemberspxc:DetectionandMeasurementReportableSegmentMember2022-01-012022-04-020000088205spxc:PackageAndProcessCoolingEquipmentAndServicesMember2022-01-012022-04-020000088205spxc:BoilerComfortHeatingAndVentilationMemberspxc:HVACReportableSegmentMember2022-01-012022-04-020000088205spxc:DetectionandMeasurementReportableSegmentMemberspxc:BoilerComfortHeatingAndVentilationMember2022-01-012022-04-020000088205spxc:BoilerComfortHeatingAndVentilationMember2022-01-012022-04-020000088205spxc:HVACReportableSegmentMemberspxc:UndergroundLocatorsInspectionAndRehabilitationEquipmentAndRoboticSystemsMember2022-01-012022-04-020000088205spxc:DetectionandMeasurementReportableSegmentMemberspxc:UndergroundLocatorsInspectionAndRehabilitationEquipmentAndRoboticSystemsMember2022-01-012022-04-020000088205spxc:UndergroundLocatorsInspectionAndRehabilitationEquipmentAndRoboticSystemsMember2022-01-012022-04-020000088205spxc:CommunicationTechnologiesObstructionLightingAndBusFareCollectionSystemsMemberspxc:HVACReportableSegmentMember2022-01-012022-04-020000088205spxc:CommunicationTechnologiesObstructionLightingAndBusFareCollectionSystemsMemberspxc:DetectionandMeasurementReportableSegmentMember2022-01-012022-04-020000088205spxc:CommunicationTechnologiesObstructionLightingAndBusFareCollectionSystemsMember2022-01-012022-04-020000088205spxc:HVACReportableSegmentMember2022-01-012022-04-020000088205spxc:DetectionandMeasurementReportableSegmentMember2022-01-012022-04-020000088205us-gaap:TransferredAtPointInTimeMemberspxc:HVACReportableSegmentMember2022-01-012022-04-020000088205spxc:DetectionandMeasurementReportableSegmentMemberus-gaap:TransferredAtPointInTimeMember2022-01-012022-04-020000088205us-gaap:TransferredAtPointInTimeMember2022-01-012022-04-020000088205us-gaap:TransferredOverTimeMemberspxc:HVACReportableSegmentMember2022-01-012022-04-020000088205spxc:DetectionandMeasurementReportableSegmentMemberus-gaap:TransferredOverTimeMember2022-01-012022-04-020000088205us-gaap:TransferredOverTimeMember2022-01-012022-04-020000088205spxc:PackageAndProcessCoolingEquipmentAndServicesMemberspxc:HVACReportableSegmentMember2021-01-012021-04-030000088205spxc:PackageAndProcessCoolingEquipmentAndServicesMemberspxc:DetectionandMeasurementReportableSegmentMember2021-01-012021-04-030000088205spxc:PackageAndProcessCoolingEquipmentAndServicesMember2021-01-012021-04-030000088205spxc:BoilerComfortHeatingAndVentilationMemberspxc:HVACReportableSegmentMember2021-01-012021-04-030000088205spxc:DetectionandMeasurementReportableSegmentMemberspxc:BoilerComfortHeatingAndVentilationMember2021-01-012021-04-030000088205spxc:BoilerComfortHeatingAndVentilationMember2021-01-012021-04-030000088205spxc:HVACReportableSegmentMemberspxc:UndergroundLocatorsInspectionAndRehabilitationEquipmentAndRoboticSystemsMember2021-01-012021-04-030000088205spxc:DetectionandMeasurementReportableSegmentMemberspxc:UndergroundLocatorsInspectionAndRehabilitationEquipmentAndRoboticSystemsMember2021-01-012021-04-030000088205spxc:UndergroundLocatorsInspectionAndRehabilitationEquipmentAndRoboticSystemsMember2021-01-012021-04-030000088205spxc:CommunicationTechnologiesObstructionLightingAndBusFareCollectionSystemsMemberspxc:HVACReportableSegmentMember2021-01-012021-04-030000088205spxc:CommunicationTechnologiesObstructionLightingAndBusFareCollectionSystemsMemberspxc:DetectionandMeasurementReportableSegmentMember2021-01-012021-04-030000088205spxc:CommunicationTechnologiesObstructionLightingAndBusFareCollectionSystemsMember2021-01-012021-04-030000088205spxc:HVACReportableSegmentMember2021-01-012021-04-030000088205spxc:DetectionandMeasurementReportableSegmentMember2021-01-012021-04-030000088205us-gaap:TransferredAtPointInTimeMemberspxc:HVACReportableSegmentMember2021-01-012021-04-030000088205spxc:DetectionandMeasurementReportableSegmentMemberus-gaap:TransferredAtPointInTimeMember2021-01-012021-04-030000088205us-gaap:TransferredAtPointInTimeMember2021-01-012021-04-030000088205us-gaap:TransferredOverTimeMemberspxc:HVACReportableSegmentMember2021-01-012021-04-030000088205spxc:DetectionandMeasurementReportableSegmentMemberus-gaap:TransferredOverTimeMember2021-01-012021-04-030000088205us-gaap:TransferredOverTimeMember2021-01-012021-04-030000088205srt:MinimumMember2022-04-032022-04-020000088205srt:MaximumMember2022-04-032022-04-02spxc:countryspxc:segment0000088205spxc:HVACReportableSegmentMemberus-gaap:OperatingSegmentsMember2022-01-012022-04-020000088205spxc:HVACReportableSegmentMemberus-gaap:OperatingSegmentsMember2021-01-012021-04-030000088205spxc:DetectionandMeasurementReportableSegmentMemberus-gaap:OperatingSegmentsMember2022-01-012022-04-020000088205spxc:DetectionandMeasurementReportableSegmentMemberus-gaap:OperatingSegmentsMember2021-01-012021-04-030000088205us-gaap:OperatingSegmentsMember2022-01-012022-04-020000088205us-gaap:OperatingSegmentsMember2021-01-012021-04-030000088205us-gaap:CorporateNonSegmentMember2022-01-012022-04-020000088205us-gaap:CorporateNonSegmentMember2021-01-012021-04-030000088205us-gaap:MaterialReconcilingItemsMember2022-01-012022-04-020000088205us-gaap:MaterialReconcilingItemsMember2021-01-012021-04-030000088205spxc:HVACReportableSegmentMember2021-12-310000088205spxc:HVACReportableSegmentMember2022-04-020000088205spxc:DetectionandMeasurementReportableSegmentMember2021-12-310000088205spxc:DetectionandMeasurementReportableSegmentMember2022-04-020000088205spxc:InternationalTowerLightingLLCMember2022-01-012022-04-020000088205spxc:CincinnatiFanMember2022-01-012022-04-020000088205spxc:SealiteAcquisitionMember2022-01-012022-04-020000088205us-gaap:CustomerRelationshipsMember2022-04-020000088205us-gaap:CustomerRelationshipsMember2021-12-310000088205us-gaap:DevelopedTechnologyRightsMember2022-04-020000088205us-gaap:DevelopedTechnologyRightsMember2021-12-310000088205us-gaap:PatentsMember2022-04-020000088205us-gaap:PatentsMember2021-12-310000088205us-gaap:OtherIntangibleAssetsMember2022-04-020000088205us-gaap:OtherIntangibleAssetsMember2021-12-310000088205us-gaap:TrademarksMember2022-04-020000088205us-gaap:TrademarksMember2021-12-310000088205spxc:HVACReportableSegmentMemberus-gaap:TrademarksMember2022-04-020000088205spxc:DetectionandMeasurementReportableSegmentMemberus-gaap:TrademarksMember2022-04-020000088205spxc:ULCRoboticsMember2022-04-020000088205spxc:SPXPostretirementPlansMember2022-02-170000088205spxc:SPXPostretirementPlansMember2022-01-012022-04-020000088205country:US2022-01-012022-04-020000088205country:US2021-01-012021-04-030000088205us-gaap:ForeignPlanMember2022-01-012022-04-020000088205us-gaap:ForeignPlanMember2021-01-012021-04-030000088205us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-01-012022-04-020000088205us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-01-012021-04-030000088205us-gaap:RevolvingCreditFacilityMemberspxc:CurrentRevolvingSPXFacilitiesMember2021-12-310000088205us-gaap:RevolvingCreditFacilityMemberspxc:CurrentRevolvingSPXFacilitiesMember2022-01-012022-04-020000088205us-gaap:RevolvingCreditFacilityMemberspxc:CurrentRevolvingSPXFacilitiesMember2022-04-020000088205spxc:CurrentSPXTermLoanFacilitiesMemberus-gaap:LoansPayableMember2021-12-310000088205spxc:CurrentSPXTermLoanFacilitiesMemberus-gaap:LoansPayableMember2022-01-012022-04-020000088205spxc:CurrentSPXTermLoanFacilitiesMemberus-gaap:LoansPayableMember2022-04-020000088205us-gaap:AssetBackedSecuritiesMember2021-12-310000088205us-gaap:AssetBackedSecuritiesMember2022-01-012022-04-020000088205us-gaap:AssetBackedSecuritiesMember2022-04-020000088205spxc:OtherBorrowingsMember2021-12-310000088205spxc:OtherBorrowingsMember2022-01-012022-04-020000088205spxc:OtherBorrowingsMember2022-04-020000088205spxc:CurrentSPXTermLoanFacilitiesMemberus-gaap:DebtInstrumentRedemptionPeriodOneMemberus-gaap:LoansPayableMember2022-01-012022-04-020000088205us-gaap:DebtInstrumentRedemptionPeriodTwoMemberspxc:CurrentSPXTermLoanFacilitiesMemberus-gaap:LoansPayableMember2022-01-012022-04-020000088205us-gaap:DomesticLineOfCreditMember2022-04-020000088205us-gaap:ForeignLineOfCreditMember2022-04-020000088205us-gaap:LineOfCreditMember2022-04-020000088205spxc:InterestRateSwapThroughMarch2021Memberus-gaap:DesignatedAsHedgingInstrumentMember2022-04-020000088205spxc:InterestRateSwapThroughNovember2024Memberus-gaap:DesignatedAsHedgingInstrumentMember2022-04-020000088205us-gaap:MediumTermNotesMemberspxc:InterestRateSwapThroughNovember2024Memberus-gaap:DesignatedAsHedgingInstrumentMember2022-04-020000088205us-gaap:InterestRateSwapMember2022-04-020000088205us-gaap:InterestRateSwapMember2021-12-310000088205us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-04-020000088205us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-12-310000088205us-gaap:ForeignExchangeForwardMember2022-04-020000088205us-gaap:ForeignExchangeForwardMember2021-12-310000088205us-gaap:CommodityContractMember2021-07-042021-10-020000088205spxc:RestrictedStockAndRestrictedStockUnitsMember2022-01-012022-04-020000088205us-gaap:EmployeeStockOptionMember2022-01-012022-04-020000088205spxc:RestrictedStockAndRestrictedStockUnitsMember2021-01-012021-04-030000088205us-gaap:EmployeeStockOptionMember2021-01-012021-04-030000088205us-gaap:PerformanceSharesMember2022-01-012022-04-020000088205spxc:PerformanceSharesRestrictedStockandRestrictedStockUnitsMember2021-12-310000088205spxc:PerformanceSharesRestrictedStockandRestrictedStockUnitsMember2022-01-012022-04-020000088205spxc:PerformanceSharesRestrictedStockandRestrictedStockUnitsMember2022-04-020000088205us-gaap:EmployeeStockOptionMember2021-03-012021-03-010000088205srt:MaximumMemberus-gaap:EmployeeStockOptionMember2021-03-012021-03-010000088205us-gaap:EmployeeStockOptionMember2022-01-012022-04-020000088205srt:MinimumMemberus-gaap:EmployeeStockOptionMember2022-01-012022-04-020000088205srt:MaximumMemberus-gaap:EmployeeStockOptionMember2022-01-012022-04-020000088205us-gaap:EmployeeStockOptionMember2022-04-020000088205us-gaap:AccumulatedTranslationAdjustmentMember2021-12-310000088205us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-12-310000088205us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-12-310000088205us-gaap:AccumulatedTranslationAdjustmentMember2022-01-012022-04-020000088205us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-01-012022-04-020000088205us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-01-012022-04-020000088205us-gaap:AccumulatedTranslationAdjustmentMember2022-04-020000088205us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-04-020000088205us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-04-020000088205us-gaap:AccumulatedTranslationAdjustmentMember2020-12-310000088205us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2020-12-310000088205us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-12-310000088205us-gaap:AccumulatedTranslationAdjustmentMember2021-01-012021-04-030000088205us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-01-012021-04-030000088205us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-01-012021-04-030000088205us-gaap:AccumulatedTranslationAdjustmentMember2021-04-030000088205us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-04-030000088205us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-04-030000088205us-gaap:CommodityContractMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-01-012022-04-020000088205us-gaap:CommodityContractMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-01-012021-04-030000088205us-gaap:InterestRateSwapMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-01-012022-04-020000088205us-gaap:InterestRateSwapMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-01-012021-04-030000088205us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-01-012022-04-020000088205us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-01-012021-04-030000088205us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-01-012022-04-020000088205us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-01-012021-04-030000088205spxc:OtherLongTermLiabilitiesMember2022-04-020000088205spxc:OtherLongTermLiabilitiesMember2021-12-310000088205srt:MinimumMemberus-gaap:AsbestosIssueMember2022-01-012022-04-02spxc:entity0000088205us-gaap:AsbestosIssueMember2022-04-020000088205us-gaap:AsbestosIssueMember2021-12-310000088205us-gaap:OtherAssetsMemberus-gaap:AsbestosIssueMember2022-04-020000088205us-gaap:OtherAssetsMemberus-gaap:AsbestosIssueMember2021-12-310000088205spxc:OtherLongTermLiabilitiesMemberus-gaap:AsbestosIssueMember2022-04-020000088205spxc:OtherLongTermLiabilitiesMemberus-gaap:AsbestosIssueMember2021-12-31spxc:claim0000088205us-gaap:AsbestosIssueMember2020-12-310000088205us-gaap:AsbestosIssueMember2022-01-012022-04-020000088205us-gaap:AsbestosIssueMember2021-01-012021-04-030000088205us-gaap:AsbestosIssueMember2021-04-030000088205country:ZAspxc:LargePowerProjectsMember2022-04-02iso4217:ZAR00000882052020-07-23spxc:dispute0000088205spxc:DemandBondsMembercountry:ZAspxc:LargePowerProjectsMember2020-07-230000088205spxc:DemandBondsMembercountry:ZAspxc:LargePowerProjectsMemberspxc:BondsUponCompletionOfCertainAdministrativeMilestonesMemberMember2020-07-230000088205spxc:DemandBondsMembercountry:ZAspxc:MHIMemberspxc:LargePowerProjectsMember2020-07-232020-07-230000088205country:ZAspxc:LargePowerProjectsMember2020-07-230000088205country:ZAspxc:LargePowerProjectsMember2021-02-220000088205country:ZAspxc:LargePowerProjectsMember2021-02-222021-02-220000088205country:ZAspxc:LargePowerProjectsMember2021-04-280000088205country:ZAspxc:LargePowerProjectsMember2021-04-282021-04-280000088205country:ZAspxc:LargePowerProjectsMember2021-06-040000088205country:ZAspxc:MHIAprilAndJuly2019ClaimsMemberspxc:LargePowerProjectsMember2019-07-310000088205country:ZAspxc:MHIAdditionalClaimsMemberspxc:LargePowerProjectsMember2019-07-310000088205spxc:DemandBondsMembercountry:ZAspxc:MHIMemberspxc:LargePowerProjectsMember2020-09-012020-09-300000088205spxc:DemandBondsMembercountry:ZAspxc:MHIMemberspxc:LargePowerProjectsMember2021-05-012021-05-310000088205spxc:DemandBondsMembercountry:ZAspxc:MHIMemberspxc:LargePowerProjectsMember2021-10-022021-10-020000088205spxc:DemandBondsMembercountry:ZAspxc:MHIMemberspxc:LargePowerProjectsMember2022-04-020000088205spxc:DemandBondsMembercountry:ZAspxc:MHIMemberspxc:LargePowerProjectsMember2021-12-310000088205spxc:LargePowerProjectsMember2021-02-052021-02-050000088205us-gaap:EnvironmentalIssueMember2021-12-31spxc:site0000088205us-gaap:EnvironmentalIssueMember2022-04-020000088205srt:MaximumMember2022-04-020000088205spxc:BalckeDurrBusinessMemberus-gaap:DiscontinuedOperationsDisposedOfBySaleMemberspxc:SubsidiaryofmutaresAGtheBuyerMember2016-12-30iso4217:EUR0000088205spxc:BankandSuretyBondsMemberspxc:BalckeDurrBusinessMemberus-gaap:DiscontinuedOperationsDisposedOfBySaleMemberspxc:SubsidiaryofmutaresAGtheBuyerMember2016-12-300000088205spxc:BalckeDurrBusinessMemberus-gaap:DiscontinuedOperationsDisposedOfBySaleMemberspxc:SubsidiaryofmutaresAGtheBuyerMemberspxc:BalckeDurrGmbHMember2016-12-300000088205spxc:BalckeDurrBusinessMemberspxc:MutaresAGMemberus-gaap:IndemnificationGuaranteeMemberus-gaap:DiscontinuedOperationsDisposedOfBySaleMemberspxc:SubsidiaryofmutaresAGtheBuyerMember2016-12-300000088205spxc:BalckeDurrBusinessMemberus-gaap:DiscontinuedOperationsDisposedOfBySaleMemberspxc:SubsidiaryofmutaresAGtheBuyerMemberspxc:BalckeDurrGmbHMember2022-04-020000088205spxc:BalckeDurrBusinessMemberus-gaap:DiscontinuedOperationsDisposedOfBySaleMemberspxc:SubsidiaryofmutaresAGtheBuyerMemberspxc:BalckeDurrGmbHMember2021-12-310000088205spxc:BalckeDurrBusinessMemberspxc:GuaranteesandBondsMemberus-gaap:DiscontinuedOperationsDisposedOfBySaleMember2020-12-310000088205spxc:BalckeDurrBusinessMemberus-gaap:DiscontinuedOperationsDisposedOfBySaleMemberus-gaap:IndemnificationGuaranteeMember2020-12-310000088205spxc:BalckeDurrBusinessMemberspxc:GuaranteesandBondsMemberus-gaap:DiscontinuedOperationsDisposedOfBySaleMember2021-01-012021-04-030000088205spxc:BalckeDurrBusinessMemberus-gaap:DiscontinuedOperationsDisposedOfBySaleMemberus-gaap:IndemnificationGuaranteeMember2021-01-012021-04-030000088205spxc:BalckeDurrBusinessMemberspxc:GuaranteesandBondsMemberus-gaap:DiscontinuedOperationsDisposedOfBySaleMember2021-04-030000088205spxc:BalckeDurrBusinessMemberus-gaap:DiscontinuedOperationsDisposedOfBySaleMemberus-gaap:IndemnificationGuaranteeMember2021-04-030000088205spxc:SensorsSoftwareIncMember2020-11-110000088205spxc:SensorsSoftwareIncMember2022-04-02


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended April 2, 2022
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 1-6948

SPX CORPORATION
(Exact Name of registrant as specified in its charter)
Delaware 38-1016240
(State or other jurisdiction of incorporation or
organization)
 (I.R.S. Employer Identification No.)
 
6325 Ardrey Kell Road, Suite 400, Charlotte, North Carolina 28277
(Address of principal executive offices) (Zip Code)

(980474-3700
(Registrant’s telephone number, including area code)

NOT APPLICABLE
(Former name, former address, and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbols(s)Name of each exchange on which registered
Common Stock, par value $0.01SPXCNew 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  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 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. 
Common shares outstanding April 29, 2022, 45,718,063




SPX CORPORATION AND SUBSIDIARIES
FORM 10-Q INDEX





PART I—FINANCIAL INFORMATION
 
ITEM 1. Financial Statements
 
SPX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited; in millions, except per share amounts)
 Three months ended
April 2,
2022
April 3,
2021
Revenues$307.1 $287.2 
Costs and expenses: 
Cost of products sold203.1 182.8 
Selling, general and administrative84.2 75.2 
Intangible amortization9.3 4.0 
Special charges, net 0.2 
Other operating income(0.9) 
Operating income 11.4 25.0 
Other income, net6.5 7.4 
Interest expense(2.4)(4.2)
Interest income0.1 0.1 
Income from continuing operations before income taxes15.6 28.3 
Income tax provision(2.6)(5.3)
Income from continuing operations13.0 23.0 
Income from discontinued operations, net of tax 4.6 
Loss on disposition of discontinued operations, net of tax(1.6)(0.8)
Income (loss) from discontinued operations, net of tax(1.6)3.8 
Net income$11.4 $26.8 
Basic income per share of common stock: 
Income from continuing operations$0.29 $0.51 
Income (loss) from discontinued operations(0.04)0.08 
Net income per share$0.25 $0.59 
Weighted-average number of common shares outstanding — basic45.554 45.132 
Diluted income per share of common stock: 
Income from continuing operations $0.28 $0.50 
Income (loss) from discontinued operations(0.03)0.08 
Net income per share$0.25 $0.58 
Weighted-average number of common shares outstanding — diluted46.445 46.319 
Comprehensive income $14.4 $29.5 

The accompanying notes are an integral part of these statements.
3


SPX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited; in millions, except share data)
April 2,
2022
December 31,
2021
ASSETS  
Current assets:  
Cash and equivalents$262.8 $388.2 
Accounts receivable, net223.1 223.4 
Contract assets30.3 28.9 
Inventories, net220.7 189.8 
Other current assets78.6 73.1 
Total current assets815.5 903.4 
Property, plant and equipment:  
Land13.9 13.9 
Buildings and leasehold improvements62.8 62.9 
Machinery and equipment233.1 231.4 
309.8 308.2 
Accumulated depreciation(199.1)(194.9)
Property, plant and equipment, net110.7 113.3 
Goodwill490.6 457.3 
Intangibles, net405.9 415.5 
Other assets676.6 675.9 
Deferred income taxes12.5 11.0 
Assets of DBT and Heat Transfer (includes cash and cash equivalents of $6.7 and $7.8 at April 2, 2022 and December 31, 2021, respectively)
55.4 52.2 
TOTAL ASSETS$2,567.2 $2,628.6 
LIABILITIES AND STOCKHOLDERS' EQUITY 
Current liabilities: 
Accounts payable$111.0 $119.6 
Contract liabilities43.7 44.7 
Accrued expenses177.4 217.9 
Income taxes payable46.8 42.1 
Short-term debt2.0 2.2 
Current maturities of long-term debt13.0 13.0 
Total current liabilities393.9 439.5 
Long-term debt227.7 230.8 
Deferred and other income taxes30.6 31.3 
Other long-term liabilities761.2 788.5 
Liabilities of DBT and Heat Transfer38.0 35.6 
Total long-term liabilities1,057.5 1,086.2 
Commitments and contingent liabilities (Note 15)
Stockholders' Equity: 
Common stock (53,065,643 and 45,716,583 issued and outstanding at April 2, 2022, respectively, and 53,011,255 and 45,467,768 issued and outstanding at December 31, 2021, respectively)
0.5 0.5 
Paid-in capital1,321.2 1,334.2 
Retained deficit(40.4)(51.8)
Accumulated other comprehensive income266.9 263.9 
Common stock in treasury (7,349,060 and 7,543,487 shares at April 2, 2022 and December 31, 2021, respectively)
(432.4)(443.9)
Total stockholders' equity1,115.8 1,102.9 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$2,567.2 $2,628.6 

 
The accompanying notes are an integral part of these statements.
4


SPX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(Unaudited; in millions)

Three months ended April 2, 2022
Common
Stock
Paid-In
Capital
Retained
Deficit
Accum. Other
Comprehensive
Income
Common
Stock In
Treasury
SPX
Corporation
Stockholders’
Equity
Balance at December 31, 2021$0.5 $1,334.2 $(51.8)$263.9 $(443.9)$1,102.9 
Net income— — 11.4 — — 11.4 
Other comprehensive income, net— — — 3.0 — 3.0 
Incentive plan activity
— 2.5 — — — 2.5 
Long-term incentive compensation expense
— 3.1 — — — 3.1 
Restricted stock unit vesting— (18.6)— — 11.5 (7.1)
Balance at April 2, 2022$0.5 $1,321.2 $(40.4)$266.9 $(432.4)$1,115.8 




Three months ended April 3, 2021
Common StockPaid-In CapitalRetained DeficitAccum. Other Comprehensive IncomeCommon Stock In TreasurySPX Corporation Stockholders’ Equity
Balance at December 31, 2020$0.5 $1,319.9 $(477.2)$248.5 $(451.6)$640.1 
Net income— — 26.8 — — 26.8 
Other comprehensive income, net— — — 2.7 — 2.7 
Incentive plan activity— 3.8 — — — 3.8 
Long-term incentive compensation expense— 3.0 — — — 3.0 
Restricted stock unit vesting— (10.9)— — 6.2 (4.7)
Balance at April 3, 2021$0.5 $1,315.8 $(450.4)$251.2 $(445.4)$671.7 



The accompanying notes are an integral part of these statements.
5


SPX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; in millions)
 Three months ended
April 2,
2022
April 3,
2021
Cash flows from (used in) operating activities:  
Net income$11.4 $26.8 
Less: Income (loss) from discontinued operations, net of tax(1.6)3.8 
Income from continuing operations13.0 23.0 
Adjustments to reconcile income from continuing operations to net cash from (used in) operating activities: 
Special charges, net 0.2 
Gain on change in fair value of equity security(4.4)(5.2)
Deferred and other income taxes4.3 8.3 
Depreciation and amortization14.0 8.7 
Pension and other employee benefits1.6 0.7 
Long-term incentive compensation3.1 2.7 
Other, net0.6 1.8 
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable and other assets10.4 27.5 
Inventories(25.6)(6.9)
Accounts payable, accrued expenses and other(65.5)(37.3)
Cash spending on restructuring actions(0.1)(0.4)
Net cash from (used in) continuing operations(48.6)23.1 
Net cash from (used in) discontinued operations(8.6)37.1 
Net cash from (used in) operating activities(57.2)60.2 
Cash flows from (used in) investing activities:
Proceeds related to company-owned life insurance policies, net 3.5 
Business acquisition, net of cash acquired(41.8) 
Capital expenditures(2.1)(2.2)
Net cash from (used in) continuing operations(43.9)1.3 
Net cash used in discontinued operations(13.9)(0.4)
Net cash from (used in) investing activities(57.8)0.9 
Cash flows from (used in) financing activities:
Borrowings under senior credit facilities 54.0 
Repayments under senior credit facilities(3.1)(81.6)
Borrowings under trade receivables arrangement 54.0 
Repayments under trade receivables arrangement (48.0)
Net borrowings (repayments) under other financing arrangements(0.2)0.2 
Payment of contingent consideration(1.3) 
Minimum withholdings paid on behalf of employees for net share settlements, net of proceeds from the exercise of employee stock options(6.4)(3.8)
Net cash used in continuing operations(11.0)(25.2)
Net cash used in discontinued operations(0.4)(0.4)
Net cash used in financing activities(11.4)(25.6)
Change in cash and equivalents due to changes in foreign currency exchange rates(0.1)3.1 
Net change in cash and equivalents(126.5)38.6 
Consolidated cash and equivalents, beginning of period396.0 68.3 
Consolidated cash and equivalents, end of period$269.5 $106.9 
Three months ended
April 2,
2022
April 3,
2021
Components of cash and equivalents:
Cash and cash equivalents$262.8 $90.7 
Cash and cash equivalents included in assets of DBT and Heat Transfer6.716.2
Total cash and equivalents$269.5 $106.9 

 
The accompanying notes are an integral part of these statements.
6


SPX CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited; in millions, except per share data and asbestos-related claims)
 
(1)    BASIS OF PRESENTATION
Unless otherwise indicated, “we,” “us” and “our” mean SPX Corporation and its consolidated subsidiaries (“SPX”).
We prepared the condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules and regulations, certain footnotes or other financial information normally required by accounting principles generally accepted in the United States (“GAAP”) can be condensed or omitted. The financial statements represent our accounts after the elimination of intercompany transactions and, in our opinion, include the adjustments (consisting only of normal and recurring items) necessary for their presentation. Unless otherwise indicated, amounts provided in these Notes pertain to continuing operations only (see Note 3 for information on discontinued operations).
We account for investments in unconsolidated companies where we exercise significant influence but do not have control using the equity method. In determining whether we are the primary beneficiary of a variable interest entity (“VIE”), we perform a qualitative analysis that considers the design of the VIE, the nature of our involvement and the variable interests held by other parties to determine which party has the power to direct the activities of the VIE that most significantly impact the entity’s economic performance, and which party has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. All of our VIEs are immaterial, individually and in aggregate, to our condensed consolidated financial statements.
Sale of Transformer Solutions Business
On October 1, 2021, we completed the sale of SPX Transformer Solutions, Inc. (“Transformer Solutions”) pursuant to the terms of the Stock Purchase Agreement dated June 8, 2021 with GE-Prolec Transformers, Inc. (the “Purchaser”) and Prolec GE Internacional, S. de R.L. de C.V. During the quarter ended April 2, 2022, we agreed to the final adjustment of the purchase price which resulted in a payment to the Purchaser of $13.9 with no resulting adjustment to the gain on sale. Historically, Transformer Solutions’ operations have had a significant impact on our consolidated financial results, with revenues totaling approximately 25% of our total consolidated revenues. As we no longer have a consequential presence in the power transmission and distribution markets, and given Transformer Solutions' significance to our historical consolidated financial results, we concluded that the sale of Transformer Solutions represented a strategic shift. Accordingly, we have classified the business as a discontinued operation in the accompanying condensed consolidated financial statements. See Note 3 for additional details.

Wind-Down of DBT Technologies Business
During the fourth quarter of 2021, we substantially ceased all operations of DBT Technologies (PTY) LTD (“DBT”). As a result, we are reporting DBT as a discontinued operation in the accompanying condensed consolidated financial statements. DBT continues to be involved in various dispute resolution matters related to two large power projects. See Note 3 for additional details regarding DBT's presentation as a discontinued operation and Note 15 regarding the dispute resolution matters.

Acquisition of Sealite
On April 19, 2021, we completed the acquisition of Sealite Pty Ltd and affiliated entities, including Sealite USA, LLC (doing business as Avlite Systems) and Star2M Pty Ltd (collectively, “Sealite”). Sealite is a leader in the design and manufacture of marine and aviation Aids to Navigation products. We purchased Sealite for cash consideration of $80.3, net of cash acquired of $2.3. The post acquisition operating results of Sealite are reflected within our Detection and Measurement reportable segment.

7


Acquisition of ECS

On August 2, 2021, we completed the acquisition of Enterprise Control Systems Ltd (“ECS”), a leader in the design and manufacture of highly-engineered tactical datalinks and radio frequency (“RF”) countermeasures, including counter-drone and counter-IED RF jammers. We purchased ECS for cash consideration of $39.4, net of cash acquired of $5.1. Under the terms of the purchase and sales agreement, the seller is eligible for additional cash consideration of up to $16.4, with payment to be made in the fourth quarter of 2022 upon successful achievement of certain financial performance milestones. During the fourth quarter of 2021, we concluded that the probability of achieving the above financial performance milestones had lessened due to a delay in the execution of certain large orders, resulting in a reduction of the estimated liability of $6.7. During the first quarter of 2022, we further reduced the estimated liability by $0.9, with such amount recorded within “Other operating income.” The estimated fair value of such contingent consideration, which we have reflected as a liability in our condensed consolidated balance sheets, was $0.6 and $1.5 at April 2, 2022 and December 31, 2021, respectively. The post acquisition operating results of ECS are reflected within our Detection and Measurement reportable segment.

Acquisition of Cincinnati Fan

On December 15, 2021, we completed the acquisition of Cincinnati Fan & Ventilator Co., Inc. (“Cincinnati Fan”), a leader in engineered air movement solutions, including blowers and critical exhaust systems. We purchased Cincinnati Fan for cash consideration of $145.2, net of cash acquired of $2.5. The purchase price is subject to adjustment based on the final calculation of working capital, cash, and debt as of the date of the acquisition. The post acquisition operating results of Cincinnati Fan are reflected within our HVAC reportable segment.

Acquisition of ITL

On March 31, 2022, we completed the acquisition of International Tower Lighting, LLC (ITL), a leader in the design and manufacture of highly-engineered Aids-to-Navigation systems, including obstruction lighting for telecommunications towers, wind turbines and numerous other terrestrial obstructions. We purchased ITL for cash consideration of $41.8, net of cash acquired of $1.1. The purchase price is subject to adjustment based on the final calculation of working capital, cash, and debt as of the date of the acquisition. The post acquisition operating results of ITL are reflected within our Detection and Measurement reportable segment.

The assets acquired and liabilities assumed in the Sealite, ECS, Cincinnati Fan, and ITL transactions have been recorded at estimates of fair value as determined by management, based on information available and assumptions as to future operations and are subject to change, primarily for the final assessment and valuation of certain income tax amounts, and the valuation of ITL's acquired intangible assets.

Change in Segment Reporting Structure

As Transformer Solutions is now being reported as a discontinued operation, the remaining operations of our former Engineered Solutions reportable segment are being reported within our HVAC reportable segment, as these operations are now being managed, and evaluated by our Chief Operating Decision Maker, as part of our HVAC cooling business.

Change in Accounting Method

During the fourth quarter of 2021, as a means of harmonizing our accounting method for inventory across all of our businesses, we converted the inventory accounting for certain businesses within our HVAC reportable segment from the last-in, first-out (“LIFO”) method to the first-in, first-out (“FIFO”) method. This change in accounting has been retrospectively applied, with the change having no impact on our results herein for the three months ended April 3, 2021.

Other
Preparing financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from these estimates. The unaudited information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2021. Interim results are not necessarily indicative of full year results.
We establish actual interim closing dates using a fiscal calendar, which requires our businesses to close their books on the Saturday closest to the end of the first calendar quarter, with the second and third quarters being 91 days in length. Our fourth quarter ends on December 31. The interim closing dates for the first, second and third quarters of 2022 are April 2, July 2, and October 1, compared to the respective April 3, July 3 and October 2, 2021 dates. We had one less day in the first quarter of 2022 and will have one more day in the fourth quarter of 2022 than in the respective 2021 periods. It is not practicable to
8


estimate the impact of the one less day on our consolidated operating results for the three months ended April 2, 2022, when compared to the consolidated operating results for the 2021 respective period.

Reclassification of Prior Year Amounts
Certain prior year amounts have been reclassified to conform to the current year presentation, including amounts related to the inclusion of DBT and Transformer Solutions within discontinued operations and the resulting change in our segment reporting structure noted above.

(2)    NEW ACCOUNTING PRONOUNCEMENTS
The following is a summary of new accounting pronouncements that apply or may apply to our business.
The London Interbank Offered Rate (“LIBOR”) is scheduled to be discontinued on June 30, 2023. In an effort to address the various challenges created by such discontinuance, the Financial Accounting Standards Board (“FASB”) issued two amendments to existing guidance, Accounting Standards Update (“ASU”) No. 2020-04 and No. 2021-01, Reference Rate Reform. The amended guidance is designed to provide relief from the accounting analysis and impacts that may otherwise be required for modifications to agreements (e.g., loans, debt securities, derivatives, etc.) necessitated by the reference rate reform. It also provides optional expedients to enable companies to continue to apply hedge accounting to certain hedging relationships impacted by the reference rate reform. Application of the guidance in the amendments is optional, is only available in certain situations, and is only available for companies to apply until December 31, 2022. In preparation of our adoption of these amendments, we entered into a LIBOR transition amendment related to our global revolving credit facility, as described in our 2021 Annual Report on Form 10-K. Upon adoption, we do not believe these amendments will have a material impact to our condensed consolidated financial statements.

In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU requires acquiring entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. This guidance is effective for public entities for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The impact of adopting this guidance on our condensed consolidated financial statements will depend on business combinations occurring on or after the effective date.

In March 2022, the FASB issued ASU No. 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method. This ASU allows multiple hedged layers to be designated for a single closed portfolio of financial assets or one or more beneficial interests secured by a portfolio of financial instruments. This guidance applies to all entities that elect to apply the portfolio layer method of hedge accounting in accordance with Topic 815 and is effective for public entities for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. We do not believe the adoption of this guidance will have a material impact on our condensed consolidated financial statements.

In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments - Credit Losses (Topic 326) - Troubled Debt Restructurings and Vintage Disclosures, which requires enhanced disclosure of certain loan refinancing and restructuring by creditors when a borrower is experiencing financial difficulty while eliminating certain current recognition and measurement accounting guidance. This guidance also requires the disclosure of current-period gross write-offs by year of origination for financing receivables and net investments in leases. The guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, and allows for early adoption in any interim period after issuance. We are currently assessing the impact of this amendment on our condensed consolidated financial statements.


(3)    ACQUISITIONS AND DISCONTINUED OPERATIONS
As indicated in Note 1, on April 19, 2021, August 2, 2021, December 15, 2021, and March 31, 2022, we completed the acquisitions of Sealite, ECS, Cincinnati Fan, and ITL, respectively. The pro forma effects of these acquisitions are not material to our condensed consolidated results of operations.

Sale of Transformer Solutions Business

As discussed in Note 1, on October 1, 2021, we completed the sale of Transformer Solutions. During the first quarter of 2022, we reached agreement with the Purchaser on the amount of cash, debt and working capital on the date the Transaction was consummated, for a payment made to the Purchaser of $13.9 with no resulting adjustment to the gain on sale.



9


The results of Transformer Solutions are presented as a discontinued operation for all periods presented. Major line items constituting pre-tax income and after-tax income of Transformer Solutions for the three months ended April 3, 2021 are shown below:

Three months ended
April 3, 2021
Revenues$110.6 
Costs and expenses:
Cost of product sold89.4 
Selling, general and administrative9.5 
Other expense, net0.2 
Income before income tax11.5 
Income tax provision(2.9)
Income from discontinued operations, net of tax$8.6 

Wind-Down of DBT Business

As discussed in Note 1, we completed the wind-down of our DBT business in the fourth quarter of 2021. As a result of completing the wind-down plan, we are reporting DBT as a discontinued operation for all periods presented.

Major line items constituting pre-tax loss and after-tax loss of DBT for the three months ended April 3, 2021 are shown below:

Three months ended
April 3, 2021
Revenues$0.7 
Costs and expenses:
Cost of product sold1.0 
Selling, general and administrative4.2 
Special charges0.5 
Other expense, net0.2 
Loss before tax(5.2)
Income tax benefit1.2 
Loss after tax$(4.0)


















10


The assets and liabilities of DBT have been included within Assets of DBT and Heat Transfer and Liabilities of DBT and Heat Transfer, respectively, on the condensed consolidated balance sheets as of April 2, 2022 and December 31, 2021. The major line items constituting DBT's assets and liabilities as of April 2, 2022 and December 31, 2021 are shown below:

April 2, 2022December 31, 2021
ASSETS
Cash and equivalents$6.7 $7.8 
Accounts receivable, net10.0 9.1 
Other current assets7.7 7.0 
Property, plant and equipment:
Buildings and leasehold improvements0.3 0.2 
Machinery and equipment1.5 1.5 
1.8 1.7 
Accumulated depreciation(1.6)(1.5)
Property, plant and equipment, net0.2 0.2 
Other assets30.4 27.6 
Total assets of DBT$55.0 $51.7 
LIABILITIES
Accounts payable$1.6 $2.3 
Contract liabilities5.8 5.6 
Accrued expenses25.1 22.4 
Other long-term liabilities5.3 4.9 
Total liabilities of DBT$37.8 $35.2 

Wind-Down of the Heat Transfer Business

We completed the wind-down of our SPX Heat Transfer (“Heat Transfer”) business in the fourth quarter of 2020. As a result of completing the wind-down plan, we are reporting Heat Transfer as a discontinued operation for all periods presented.
The assets and liabilities of Heat Transfer have been included within Assets of DBT and Heat Transfer and Liabilities of DBT and Heat Transfer, respectively, on the condensed consolidated balance sheets as of April 2, 2022 and December 31, 2021. The major line items constituting Heat Transfer's assets and liabilities as of April 2, 2022 and December 31, 2021 are shown below:

April 2, 2022December 31, 2021
ASSETS
Accounts receivable, net$0.1 $0.1 
Other current assets0.2 0.2 
Other assets0.1 0.2 
Total assets of Heat Transfer$0.4 $0.5 
LIABILITIES
Accounts payable$0.1 $0.3 
Accrued expenses0.1 0.1 
Total liabilities of Heat Transfer$0.2 $0.4 


Changes in estimates associated with liabilities retained in connection with a business divestiture (e.g. income taxes) may occur. As a result, it is possible that the resulting gains/losses on these and other previous divestitures may be materially adjusted in subsequent periods.


11


For the three months ended April 2, 2022 and April 3, 2021, results of operations from our businesses reported as discontinued operations were as follows:
Three months ended
April 2, 2022April 3, 2021
Transformer Solutions (1)
Income (loss) from discontinued operations$(0.3)$11.5 
Income tax (provision) benefit0.1 (2.9)
Income (loss) from discontinued operations, net(0.2)8.6 
DBT (2)
Loss from discontinued operations(1.6)(5.2)
Income tax benefit0.4 1.2 
Loss from discontinued operations, net(1.2)(4.0)
Heat Transfer (3)
Loss from discontinued operations (0.1)
Income tax (provision) benefit  
Loss from discontinued operations, net (0.1)
All other (3)
Loss from discontinued operations(0.2)(0.9)
Income tax benefit 0.2 
Loss from discontinued operations, net(0.2)(0.7)
Total
Income (loss) from discontinued operations(2.1)5.3 
Income tax (provision) benefit0.5 (1.5)
Income (loss) from discontinued operations, net$(1.6)$3.8 
___________________________

(1) Loss for the three months ended April 2, 2022 resulted primarily from revisions to liabilities retained in connection with the disposition.

(2) Loss for the three months ended April 2, 2022 resulted primarily from legal costs incurred in connection with various dispute resolution matters related to two large power projects.

(3) Loss for the three months ended April 2, 2022 and April 3, 2021 resulted primarily from revisions to liabilities retained in connection with prior dispositions.
























12


(4)    REVENUES FROM CONTRACTS
Disaggregated Revenues

We disaggregate revenue from contracts with customers by major product line and based on the timing of recognition for each of our reportable segments, as we believe such disaggregation best depicts how the nature, amount, timing, and uncertainty of our revenues and cash flows are affected by economic factors, with such disaggregation presented below for the three months ended April 2, 2022 and April 3, 2021:
Three months ended April 2, 2022
Reportable SegmentsHVACDetection and MeasurementTotal
Major product lines
Package and process cooling equipment and services, and engineered air quality solutions$116.8 $ $116.8 
Boilers, comfort heating, and ventilation76.3  76.3 
Underground locators, inspection and rehabilitation
 equipment, and robotic systems
 67.2 67.2 
Communication technologies, obstruction lighting, and bus fare collection systems 46.8 46.8 
$193.1 $114.0 $307.1 
Timing of Revenue Recognition
Revenues recognized at a point in time$173.1 $103.2 $276.3 
Revenues recognized over time20.0 10.8 30.8 
$193.1 $114.0 $307.1 


Three months ended April 3, 2021
Reportable SegmentsHVACDetection and MeasurementTotal
Major product lines
Package and process cooling equipment and services$101.7 $ $101.7 
Boilers, comfort heating, and ventilation73.9  73.9 
Underground locators, inspection and rehabilitation
 equipment, and robotic systems
 67.4 67.4 
Communication technologies, obstruction lighting, and bus fare collection systems 44.2 44.2 
$175.6 $111.6 $287.2 
Timing of Revenue Recognition
Revenues recognized at a point in time$154.4 $96.5 $250.9 
Revenues recognized over time21.2 15.1 36.3 
$175.6 $111.6 $287.2 

Contract Balances

Our customers are invoiced for products and services at the time of delivery or based on contractual milestones, resulting in outstanding receivables with payment terms from these customers (“Contract Accounts Receivable”). In some cases, the timing of revenue recognition, particularly for revenue recognized over time, differs from when such amounts are invoiced to customers, resulting in a contract asset (revenue recognition precedes the invoicing of the related revenue amount) or a contract liability (payment from the customer precedes recognition of the related revenue amount). Contract assets and liabilities are generally classified as current. On a contract-by-contract basis, the contract assets and contract liabilities are reported net within our condensed consolidated balance sheets. Our contract balances consisted of the following as of April 2, 2022 and December 31, 2021:

13


Contract BalancesApril 2, 2022December 31, 2021Change
Contract Accounts Receivable(1)
$213.9 $215.3 $(1.4)
Contract Assets30.3 28.9 1.4 
Contract Liabilities - current(43.7)(44.7)1.0 
Contract Liabilities - non-current(2)
(5.8)(5.8) 
Net contract balance$194.7 $193.7 $1.0 
___________________________
(1) Included in “Accounts receivable, net” within the accompanying condensed consolidated balance sheets.

(2) Included in “Other long-term liabilities” within the accompanying condensed consolidated balance sheets.
The $1.0 increase in our net contract asset balance from December 31, 2021 to April 2, 2022 was due primarily to revenue recognized during the period, partially offset by cash payments received from customers during the period.
During the three months ended April 2, 2022, we recognized revenues of $23.6 related to our contract liabilities at December 31, 2021.
Performance Obligations

As of April 2, 2022, the aggregate amount allocated to remaining performance obligations was $96.3. We expect to recognize revenue on approximately 75% and 87% of remaining performance obligations over the next 12 and 24 months, respectively, with the remaining recognized thereafter.



(5)    LEASES
There have been no material changes to our operating and finance leases during the three months ended April 2, 2022.




(6)    INFORMATION ON REPORTABLE SEGMENTS
We are a global supplier of highly specialized, engineered solutions with operations in 15 countries and sales in over 100 countries around the world.
We have aggregated our operating segments into the following two reportable segments: HVAC and Detection and Measurement. The factors considered in determining our aggregated segments are the economic similarity of the businesses, the nature of products sold or services provided, production processes, types of customers, distribution methods, and regulatory environment. In determining our reportable segments, we apply the threshold criteria of the Segment Reporting Topic of the Accounting Standards Codification (Codification). Operating income or loss for each of our reportable segments is determined before considering, if applicable, impairment and special charges, long-term incentive compensation, certain other operating income/expense, and other indirect corporate expenses. This is consistent with the way our Chief Operating Decision Maker evaluates the results of each segment.
HVAC Reportable Segment
Our HVAC reportable segment engineers, designs, manufactures, installs and services package and process cooling products and engineered air movement solutions for the HVAC industrial and power generation markets, as well as boilers and comfort heating and ventilation products for the residential and commercial markets. The primary distribution channels for the segment’s products are direct to customers, independent manufacturing representatives, third-party distributors, and retailers. The segment serves a customer base in North America, Europe, and Asia.
Detection and Measurement Reportable Segment
Our Detection and Measurement reportable segment engineers, designs, manufactures, services, and installs underground pipe and cable locators, inspection and rehabilitation equipment, robotic systems, bus fare collection systems, communication technologies, and obstruction lighting. The primary distribution channels for the segment’s products are direct
14


to customers and third-party distributors. The segment serves a global customer base, with a strong presence in North America, Europe, Africa and Asia.
Corporate Expense
Corporate expense generally relates to the cost of our Charlotte, North Carolina corporate headquarters.
Financial data for our reportable segments for the three months ended April 2, 2022 and April 3, 2021 are presented below:
 Three months ended
April 2,
2022
April 3,
2021
Revenues:  
HVAC reportable segment$193.1 $175.6 
Detection and Measurement reportable segment114.0 111.6 
Consolidated revenues$307.1 $287.2 
Income:  
HVAC reportable segment$15.2 $22.3 
Detection and Measurement reportable segment15.0 20.0 
Total income for reportable segments30.2 42.3 
Corporate expense16.6 14.4 
Long-term incentive compensation expense3.1 2.7 
Special charges, net 0.2 
Other operating income(0.9) 
Consolidated operating income$11.4 $25.0 


(7)    SPECIAL CHARGES, NET
Special charges, net, for the three months ended April 2, 2022 and April 3, 2021 are described in more detail below:
 Three months ended
April 2,
2022
April 3,
2021
HVAC reportable segment$ $ 
Detection and Measurement reportable segment 0.2 
Corporate  
Total$ $0.2 

Detection and Measurement — Charges for the three months ended April 3, 2021 related primarily to severance costs associated with a restructuring action at the segment's pipeline inspection and rehabilitation business.
No significant future charges are expected to be incurred under actions approved as of April 2, 2022.
The following is an analysis of our restructuring liabilities for the three months ended April 2, 2022 and April 3, 2021:
Three months ended
April 2,
2022
April 3,
2021
Balance at beginning of year$0.3 $0.8 
Special charges 0.2 
Utilization — cash(0.1)(0.4)
Currency translation adjustment and other  
Balance at end of period$0.2 $0.6 


15


(8)    INVENTORIES, NET
Inventories at April 2, 2022 and December 31, 2021 comprised the following:
April 2,
2022
December 31,
2021
Finished goods$58.9 $55.1 
Work in process25.1 21.1 
Raw materials and purchased parts136.7 113.6 
Total inventories$220.7 $189.8 
    

Inventories include material, labor and factory overhead costs and are reduced, when necessary, to estimated net realizable values.



(9)    GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill
The changes in the carrying amount of goodwill for the three months ended April 2, 2022 were as follows:
December 31,
2021
Goodwill
Resulting from
Business
Combinations (1)
Impairments Foreign
Currency
Translation
April 2,
2022
HVAC reportable segment    
Gross goodwill$528.9 $(0.7)$ $(2.1)$526.1 
Accumulated impairments(334.1)— — 1.4 (332.7)
Goodwill194.8 (0.7) (0.7)193.4 
Detection and Measurement reportable segment     
Gross goodwill424.9 35.2  (1.2)458.9 
Accumulated impairments(162.4)—  0.7 (161.7)
Goodwill262.5 35.2  (0.5)297.2 
Total     
Gross goodwill953.8 34.5  (3.3)985.0 
Accumulated impairments(496.5)—  2.1 (494.4)
Goodwill$457.3 $34.5 $ $(1.2)$490.6 
___________________________
(1)Reflects (i) goodwill acquired with the ITL acquisition of $35.6, (ii) a decrease in Cincinnati Fan's goodwill of $0.7 resulting from revisions to the valuation of certain assets and liabilities, and (iii) a decrease in Sealite's goodwill of $0.4 resulting from revisions to the valuation of certain assets and liabilities. As indicated in Note 1, the acquired assets, including goodwill, and liabilities assumed in the Sealite, Cincinnati Fan, ECS, and ITL acquisitions have been recorded at estimates of fair value and are subject to change upon completion of acquisition accounting.

16


Other Intangibles, Net
Identifiable intangible assets at April 2, 2022 and December 31, 2021 comprised the following:
 April 2, 2022December 31, 2021
Gross
Carrying
Value
Accumulated
Amortization
Net
Carrying
Value
Gross
Carrying
Value
Accumulated
Amortization
Net
Carrying
Value
Intangible assets with determinable lives:       
Customer relationships$188.0 $(30.4)$157.6 $188.2 $(26.7)$161.5 
Technology80.1 (13.6)66.5 80.1 (11.9)68.2 
Patents4.5 (4.5) 4.5 (4.5) 
Other31.6 (21.9)9.7 31.6 (18.0)13.6 
 304.2 (70.4)233.8 304.4 (61.1)243.3 
Trademarks with indefinite lives172.1 — 172.1 172.2 — 172.2 
Total$476.3 $(70.4)$405.9 $476.6 $(61.1)$415.5 

At April 2, 2022, the net carrying value of intangible assets with determinable lives consisted of $100.8 in the HVAC reportable segment and $133.0 in the Detection and Measurement reportable segment. At April 2, 2022, trademarks with indefinite lives consisted of $105.3 in the HVAC reportable segment and $66.8 in the Detection and Measurement reportable segment.
We review goodwill and indefinite-lived intangible assets for impairment annually during the fourth quarter in conjunction with our annual financial planning process, with such testing based primarily on events and circumstances existing as of the end of the third quarter. In addition, we test goodwill for impairment on a more frequent basis if there are indications of potential impairment. In reviewing goodwill and indefinite-lived intangible assets for impairment, we initially perform a qualitative analysis. If there is an indication of impairment, we then perform a quantitative analysis. A significant amount of judgment is involved in determining if an indication of impairment has occurred between annual testing dates. Such indication may include: a significant decline in expected future cash flows; a significant adverse change in legal factors or the business climate; unanticipated competition; and a more likely than not expectation of selling or disposing all, or a portion, of a reporting unit.
During the fourth quarter of 2021, based on a quantitative analyses of the goodwill and indefinite-lived intangible assets of our ULC reporting unit, we determined that the fair value of the reporting unit approximated the carrying value of its net assets. The total goodwill of ULC was $12.0 as of April 2, 2022. A change in assumptions used in ULC's quantitative analysis (e.g., projected revenues and profit growth rates, discount rates, industry price multiples, etc.) could result in the reporting unit's estimated fair value being less than the carrying value of its net assets. In addition to ULC, the fair value of Sealite, ECS, Cincinnati Fan and ITL, acquisitions over the past 12 months, approximate their carrying value. If ULC, Sealite, ECS, Cincinnati Fan or ITL are unable to achieve their respective current financial forecast, we may be required to record an impairment charge in a future period related to their respective goodwill.

We perform our annual trademarks impairment testing during the fourth quarter, or on a more frequent basis, if there are indications of potential impairment. The fair value of our trademarks is based on applying estimated royalty rates to projected revenues, with resulting cash flows discounted at a rate of return that reflects current market conditions (fair value based on unobservable inputs - Level 3, as defined in Note 17). The primary basis for these projected revenues is the annual operating plan for each of the related businesses, which is prepared in the fourth quarter of each year.

17


(10)     WARRANTY
The following is an analysis of our product warranty accrual for the periods presented:
 Three months ended
April 2,
2022
April 3,
2021
Balance at beginning of year$34.8 $35.3 
Provisions2.6 2.8 
Usage(3.0)(3.1)
Balance at end of period34.4 35.0 
Less: Current portion of warranty11.2 11.1 
Non-current portion of warranty$23.2 $23.9 

(11)    EMPLOYEE BENEFIT PLANS
On February 17, 2022, we transferred our existing liability under the SPX Postretirement Benefit Plans (the “Plans”) for a group of participants with retiree life insurance benefits to an insurance carrier for consideration payable to the insurance carrier of approximately $10.0. Of this consideration, $9.0 was paid during the quarter ended April 2, 2022, with the remainder expected to be paid in the second quarter of 2022. This transaction resulted in a settlement charge of $0.7 recorded in net periodic pension benefit expense during the first quarter of 2022. In addition, and in connection with this transfer, we remeasured the assets and liabilities of the Plans as of the transfer date, which resulted in a benefit of $0.4 recorded in net periodic pension benefit expense for the three months ended April 2, 2022. Lastly, as a result of the transfer, we have eliminated the third-party cost and internal resource requirements associated with administering these benefits.