Separate Financial Information of Guarantor Subsidiaries (Tables)

3 Months Ended

Mar. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidated Statements of Operations

Condensed Consolidated Statement of Earnings
For the three months ended March 31, 2019
(in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Tennant Company
Net Sales	$	116.5		$	148.4		$	133.3		$	(135.7	)	$	262.5
Cost of Sales	76.5			123.0			88.8			(134.0		)	154.3
Gross Profit	40.0			25.4			44.5			(1.7		)	108.2
Operating Expense:
Research and Development Expense	5.6			0.2			1.4			—			7.2
Selling and Administrative Expense	27.2			19.0			44.0			—			90.2
Total Operating Expense	32.8			19.2			45.4			—			97.4
Profit from Operations	7.2			6.2			(0.9		)	(1.7		)	10.8
Other Income (Expense):
Equity in Earnings of Affiliates	0.3			0.8			1.4			(2.5		)	—
Interest (Expense) Income, Net	(4.2		)	—			—			—			(4.2		)
Intercompany Interest Income (Expense)	3.5			(1.4		)	(2.1		)	—			—
Net Foreign Currency Transaction Gains (Losses)	—			—			0.2			—			0.2
Other Expense, Net	(0.2		)	(0.4		)	0.4			—			(0.2		)
Total Other Expense, Net	(0.6		)	(1.0		)	(0.1		)	(2.5		)	(4.2		)
Profit Before Income Taxes	6.6			5.2			(1.0		)	(4.2		)	6.6
Income Tax Expense	1.2			1.1			1.0			(2.1		)	1.2
Net Earnings Including Noncontrolling Interest	5.4			4.1			(2.0		)	(2.1		)	5.4
Net Earnings Attributable to Tennant Company	$	5.4		$	4.1		$	(2.0	)	$	(2.1	)	$	5.4

Condensed Consolidated Statement of Earnings
For the three months ended March 31, 2018
(in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Tennant Company
Net Sales	$	113.7		$	148.4		$	140.4		$	(129.7	)	$	272.8
Cost of Sales	77.2			123.1			91.8			(128.4		)	163.7
Gross Profit	36.5			25.3			48.6			(1.3		)	109.1
Operating Expense:
Research and Development Expense	6.1			0.2			1.7			—			8.0
Selling and Administrative Expense	29.1			19.7			41.9			—			90.7
Total Operating Expense	35.2			19.9			43.6			—			98.7
Profit (Loss) from Operations	1.3			5.4			5.0			(1.3		)	10.4
Other Income (Expense):
Equity in Earnings of Affiliates	4.4			0.5			2.6			(7.5		)	—
Interest Expense, Net	(5.1		)	—			0.1			—			(5.0		)
Intercompany Interest Income (Expense)	3.7			(1.4		)	(2.3		)	—			—
Net Foreign Currency Transaction Gains (Losses)	0.4			—			(1.1		)	—			(0.7		)
Other Expense, Net	(0.3		)	(0.6		)	0.6			—			(0.3		)
Total Other Expense, Net	3.1			(1.5		)	(0.1		)	(7.5		)	(6.0		)
Profit Before Income Taxes	4.4			3.9			4.9			(8.8		)	4.4
Income Tax Expense	1.1			0.9			1.6			(2.5		)	1.1
Net Earnings Including Noncontrolling Interest	3.3			3.0			3.3			(6.3		)	3.3
Net Earnings Attributable to Tennant Company	$	3.3		$	3.0		$	3.3		$	(6.3	)	$	3.3

Condensed Consolidated Statements of Comprehensive Income

Condensed Consolidated Statement of Comprehensive Income
For the three months ended March 31, 2019
(in millions)	Parent			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Total Tennant Company
Net Earnings Including Noncontrolling Interest	$	5.4		$	4.1	$	(2.0	)	$	(2.1	)	$	5.4
Other Comprehensive Loss:
Foreign currency translation adjustments	(2.3		)	—		(22.6		)	22.6			(2.3		)
Pension and retiree medical benefits	—			—		1.2			(1.2		)	—
Cash flow hedge	1.4			—		—			—			1.4
Income Taxes:
Foreign currency translation adjustments	(0.1		)	—		0.1			(0.1		)	(0.1		)
Pension and retiree medical benefits	—			—		(0.3		)	0.3			—
Cash flow hedge	(0.3		)	—		—			—			(0.3		)
Total Other Comprehensive Loss, net of tax	(1.3		)	—		(21.6		)	21.6			(1.3		)
Total Comprehensive Income (Loss) Including Noncontrolling Interest	4.1			4.1		(23.6		)	19.5			4.1
Comprehensive Income (Loss) Attributable to Tennant Company	$	4.1		$	4.1	$	(23.6	)	$	19.5		$	4.1

Condensed Consolidated Statement of Comprehensive Income
For the three months ended March 31, 2018
(in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Total Tennant Company
Net Earnings (Loss) Including Noncontrolling Interest	$	3.3		$	3.0		$	3.3	$	(6.3	)	$	3.3
Other Comprehensive Income (Loss):
Foreign currency translation adjustments	8.4			(0.2		)	7.9		(7.7		)	8.4
Pension and retiree medical benefits	0.1			—			—		—			0.1
Cash flow hedge	(2.7		)	—			—		—			(2.7		)
Income Taxes:
Foreign currency translation adjustments	—			—			—		—			—
Pension and retiree medical benefits	(0.2		)	—			—		—			(0.2		)
Cash flow hedge	(0.5		)	—			—		—			(0.5		)
Total Other Comprehensive Income (Loss), net of tax	5.1			(0.2		)	7.9		(7.7		)	5.1
Total Comprehensive Income Including Noncontrolling Interest	8.4			2.8			11.2		(14.0		)	8.4
Comprehensive Income Attributable to Tennant Company	$	8.4		$	2.8		$	11.2	$	(14.0	)	$	8.4

Condensed Consolidated Balance Sheets

Condensed Consolidated Balance Sheet
As of March 31, 2019
(in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Tennant Company
ASSETS
Current Assets:
Cash, Cash Equivalents, and Restricted Cash	$	9.8		$	1.1		$	36.0		$	—		$	46.9
Net Receivables	1.0			89.7			123.0			—			213.7
Intercompany Receivables	30.6			125.1			—			(155.7		)	—
Inventories	41.6			17.9			110.5			(11.8		)	158.2
Prepaid and Other Current Assets	20.0			0.9			12.1			0.6			33.6
Total Current Assets	103.0			234.7			281.6			(166.9		)	452.4
Property, Plant and Equipment	246.2			13.1			146.4			—			405.7
Accumulated Depreciation	(163.4		)	(6.6		)	(60.8		)	—			(230.8		)
Property, Plant and Equipment, Net	82.8			6.5			85.6			—			174.9
Operating Lease Assets	1.0			9.9			29.8			—			40.7
Investment in Affiliates	403.4			12.8			38.9			(455.1		)	—
Intercompany Loans	298.4			—			—			(298.4		)	—
Goodwill	12.9			1.7			175.1			—			189.7
Intangible Assets, Net	3.8			2.6			149.6			—			156.0
Other Assets	6.1			3.3			17.6			—			27.0
Total Assets	$	911.4		$	271.5		$	778.2		$	(920.4	)	$	1,040.7
LIABILITIES AND TOTAL EQUITY
Current Liabilities:
Current Portion of Long-Term Debt	$	28.9		$	—		$	1.2		$	—		$	30.1
Accounts Payable	36.2			5.1			53.6			—			94.9
Intercompany Payables	125.7			—			30.0			(155.7		)	—
Employee Compensation and Benefits	9.9			8.1			23.6			—			41.6
Other Current Liabilities	26.7			18.4			54.9			0.6			100.6
Total Current Liabilities	227.4			31.6			163.3			(155.1		)	267.2
Long-Term Liabilities:
Long-Term Debt	328.6			—			1.5			—			330.1
Intercompany Loans	3.4			128.0			167.0			(298.4		)	—
Long-Term Operating Lease Liabilities	0.5			4.8			19.4			—			24.7
Employee-Related Benefits	11.3			1.5			7.8			—			20.6
Deferred Income Taxes	—			—			46.2			—			46.2
Other Liabilities	20.0			3.1			8.6			—			31.7
Total Long-Term Liabilities	363.8			137.4			250.5			(298.4		)	453.3
Total Liabilities	591.2			169.0			413.8			(453.5		)	720.5
Equity:
Common Stock	6.8			—			11.1			(11.1		)	6.8
Additional Paid-In Capital	32.0			77.6			416.9			(494.5		)	32.0
Retained Earnings	317.7			26.5			(4.5		)	(22.0		)	317.7
Accumulated Other Comprehensive Loss	(38.5		)	(1.6		)	(61.3		)	62.9			(38.5		)
Total Tennant Company Shareholders' Equity	318.0			102.5			362.2			(464.7		)	318.0
Noncontrolling Interest	2.2			—			2.2			(2.2		)	2.2
Total Equity	320.2			102.5			364.4			(466.9		)	320.2
Total Liabilities and Total Equity	$	911.4		$	271.5		$	778.2		$	(920.4	)	$	1,040.7

Condensed Consolidated Balance Sheet
As of December 31, 2018
(in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Tennant Company
ASSETS
Current Assets:
Cash, Cash Equivalents, and Restricted Cash	$	24.8		$	1.6		$	59.7		$	—		$	86.1
Net Receivables	0.9			94.8			120.5			—			216.2
Intercompany Receivables	30.0			148.9			—			(178.9		)	—
Inventories	37.1			13.4			94.7			(10.1		)	135.1
Prepaid and Other Current Assets	17.5			1.2			13.0			(0.5		)	31.2
Total Current Assets	110.3			259.9			287.9			(189.5		)	468.6
Property, Plant and Equipment	229.8			12.7			144.1			—			386.6
Accumulated Depreciation	(159.4		)	(6.9		)	(56.9		)	—			(223.2		)
Property, Plant and Equipment, Net	70.4			5.8			87.2			—			163.4
Operating Lease Assets	—			—			—			—			—
Investment in Affiliates	421.0			12.1			20.8			(453.9		)	—
Intercompany Loans	301.6			—			3.2			(304.8		)	—
Goodwill	12.9			1.7			168.1			—			182.7
Intangible Assets, Net	4.0			2.7			139.8			—			146.5
Other Assets	11.0			3.1			17.2			—			31.3
Total Assets	$	931.2		$	285.3		$	724.2		$	(948.2	)	$	992.5
LIABILITIES AND TOTAL EQUITY
Current Liabilities:
Current Portion of Long-Term Debt	$	21.8		$	—		$	5.2		$	—		$	27.0
Accounts Payable	41.0			5.0			52.4			—			98.4
Intercompany Payables	149.5			—			29.5			(179.0		)	—
Employee Compensation and Benefits	14.4			17.2			24.5			—			56.1
Other Current Liabilities	22.8			17.6			27.5			(0.5		)	67.4
Total Current Liabilities	249.5			39.8			139.1			(179.5		)	248.9
Long-Term Liabilities:
Long-Term Debt	326.5			—			1.6			—			328.1
Intercompany Loans	3.3			128.1			173.5			(304.9		)	—
Long-Term Operating Lease Liabilities	—			—			—			—			—
Employee-Related Benefits	11.0			2.0			8.1			—			21.1
Deferred Income Taxes	—			—			46.0			—			46.0
Other Liabilities	24.6			2.9			4.6			—			32.1
Total Long-Term Liabilities	365.4			133.0			233.8			(304.9		)	427.3
Total Liabilities	614.9			172.8			372.9			(484.4		)	676.2
Equity:
Common Stock	6.8			—			11.1			(11.1		)	6.8
Additional Paid-In Capital	28.5			77.5			399.5			(477.0		)	28.5
Retained Earnings	316.3			36.6			(2.5		)	(34.1		)	316.3
Accumulated Other Comprehensive Loss	(37.2		)	(1.6		)	(58.7		)	60.3			(37.2		)
Total Tennant Company Shareholders' Equity	314.4			112.5			349.4			(461.9		)	314.4
Noncontrolling Interest	1.9			—			1.9			(1.9		)	1.9
Total Equity	316.3			112.5			351.3			(463.8		)	316.3
Total Liabilities and Total Equity	$	931.2		$	285.3		$	724.2		$	(948.2	)	$	992.5

Condensed Consolidated Statement Cash Flows

Condensed Consolidated Statement of Cash Flows
For the three months ended March 31, 2019
(in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Tennant Company
OPERATING ACTIVITIES
Net Cash Provided by (Used in) Operating Activities	$	(4.2	)	$	(0.4	)	$	(7.0	)	$	—		$	(11.6	)
INVESTING ACTIVITIES
Purchases of Property, Plant and Equipment	(16.6		)	(0.1		)	(3.8		)	—			(20.5		)
Proceeds from Principal Payments Received on Long-Term Note Receivable	—			—			0.1			—			0.1
Acquisition of Businesses, Net of Cash, Cash Equivalents and Restricted Cash Acquired	—			—			(9.0		)	—			(9.0		)
Purchase of Intangible Assets	—			—			(0.2		)	—			(0.2		)
Loan Payments from Parent	—			—			(0.2		)	0.2			—
Net Cash Used in Investing Activities	(16.6		)	(0.1		)	(13.1		)	0.2			(29.6		)
FINANCING ACTIVITIES
Proceeds from Credit Facility Borrowings	13.0			—			—			—			13.0
Repayments of Debt	(4.0		)	—			(4.0		)	—			(8.0		)
Change in Finance Lease Obligations	—			—			(0.1		)	—			(0.1		)
Loan Payments to Subsidiaries	0.2			—			—			(0.2		)	—
Proceeds from Issuances of Common Stock	0.6			—			—			—			0.6
Dividends Paid	(4.0		)	—			—			—			(4.0		)
Net Cash (Used in) Provided by Financing Activities	5.8			—			(4.1		)	(0.2		)	1.5
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash	—			—			0.5			—			0.5
Net Decrease in Cash, Cash Equivalents and Restricted Cash	(15.0		)	(0.5		)	(23.7		)	—			(39.2		)
Cash, Cash Equivalents and Restricted Cash at Beginning of Period	24.8			1.6			59.7			—			86.1
Cash, Cash Equivalents and Restricted Cash at End of Period	$	9.8		$	1.1		$	36.0		$	—		$	46.9

Condensed Consolidated Statement of Cash Flows
For the three months ended March 31, 2018
(in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Tennant Company
OPERATING ACTIVITIES
Net Cash (Used in) Provided by Operating Activities	$	5.8		$	1.8		$	(2.1	)	$	—		$	5.5
INVESTING ACTIVITIES
Purchases of Property, Plant and Equipment	(0.4		)	(0.2		)	(2.9		)	—			(3.5		)
Proceeds from Principal Payments Received on Long-Term Note Receivable	—			—			0.2			—			0.2
Purchase of Intangible Asset	(1.0		)	—			—			—			(1.0		)
Loan (Payments) Borrowings from Subsidiaries	(1.3		)	—			—			1.3			—
Net Cash Used in Investing Activities	(2.7		)	(0.2		)	(2.7		)	1.3			(4.3		)
FINANCING ACTIVITIES
Loan Borrowings (Payments) from Parent	—			—			1.3			(1.3		)	—
Repayment of Debt	(3.9		)	—			—			—			(3.9		)
Change in Finance Lease Obligations	—			—			—			—			—
Payments of Debt Issuance Costs	—			—			—			—			—
Proceeds from Issuance of Common Stock	0.8			—			—			—			0.8
Dividends Paid	(3.8		)	—			—			—			(3.8		)
Net Cash (Used in) Provided by Financing Activities	(6.9		)	—			1.3			(1.3		)	(6.9		)
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash	0.1			—			1.2			—			1.3
Net (Decrease) Increase in Cash, Cash Equivalents and Restricted Cash	(3.7		)	1.6			(2.3		)	—			(4.4		)
Cash, Cash Equivalents and Restricted Cash at Beginning of Period	18.4			0.5			40.1			—			59.0
Cash, Cash Equivalents and Restricted Cash at End of Period	$	14.7		$	2.1		$	37.8		$	—		$	54.6