Separate Financial Information of Guarantor Subsidiaries (Tables)

6 Months Ended

Jun. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidated Statements of Operations

Condensed Consolidated Statement of Earnings
For the three months ended June 30, 2019
(in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Tennant Company
Net Sales	$	141.0		$	175.0		$	147.8		$	(164.1	)	$	299.7
Cost of Sales	92.5			148.1			101.0			(162.7		)	178.9
Gross Profit	48.5			26.9			46.8			(1.4		)	120.8
Operating Expense:
Research and Development Expense	6.8			0.3			1.3			—			8.4
Selling and Administrative Expense	27.6			19.6			45.3			—			92.5
Total Operating Expense	34.4			19.9			46.6			—			100.9
Profit from Operations	14.1			7.0			0.2			(1.4		)	19.9
Other Income (Expense):
Equity in Earnings of Affiliates	4.4			0.6			0.9			(5.9		)	—
Interest (Expense) Income, Net	(4.5		)	—			—			—			(4.5		)
Intercompany Interest Income (Expense)	3.3			(1.4		)	(1.9		)	—			—
Net Foreign Currency Transaction Gains (Losses)	0.2			—			(0.4		)	—			(0.2		)
Other Expense, Net	(0.9		)	(0.3		)	2.7			(0.1		)	1.4
Total Other Expense, Net	2.5			(1.1		)	1.3			(6.0		)	(3.3		)
Profit Before Income Taxes	16.6			5.9			1.5			(7.4		)	16.6
Income Tax Expense (Benefit)	1.8			1.9			(1.2		)	(0.7		)	1.8
Net Earnings Including Noncontrolling Interest	14.8			4.0			2.7			(6.7		)	14.8
Net Earnings Attributable to Tennant Company	$	14.8		$	4.0		$	2.7		$	(6.7	)	$	14.8

Condensed Consolidated Statement of Earnings
For the six months ended June 30, 2019
(in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Tennant Company
Net Sales	$	257.5		$	323.3		$	281.1		$	(299.8	)	$	562.1
Cost of Sales	168.9			271.0			189.8			(296.6		)	333.1
Gross Profit	88.6			52.3			91.3			(3.2		)	229.0
Operating Expense:
Research and Development Expense	12.4			0.5			2.7			—			15.6
Selling and Administrative Expense	54.9			38.6			89.2			—			182.7
Total Operating Expense	67.3			39.1			91.9			—			198.3
Profit from Operations	21.3			13.2			(0.6		)	(3.2		)	30.7
Other Income (Expense):
Equity in Earnings of Affiliates	4.7			1.4			2.3			(8.4		)	—
Interest (Expense) Income, Net	(8.8		)	—			—			—			(8.8		)
Intercompany Interest Income (Expense)	6.9			(2.8		)	(4.1		)	—			—
Net Foreign Currency Transaction Gains (Losses)	0.2			—			(0.2		)	—			—
Other Expense, Net	(1.1		)	(0.7		)	3.2			(0.1		)	1.3
Total Other Expense, Net	1.9			(2.1		)	1.2			(8.5		)	(7.5		)
Profit Before Income Taxes	23.2			11.1			0.6			(11.7		)	23.2
Income Tax Expense (Benefit)	3.0			3.0			(0.2		)	(2.8		)	3.0
Net Earnings Including Noncontrolling Interest	20.2			8.1			0.8			(8.9		)	20.2
Net Earnings Attributable to Tennant Company	$	20.2		$	8.1		$	0.8		$	(8.9	)	$	20.2

Condensed Consolidated Statement of Earnings
For the three months ended June 30, 2018
(in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Tennant Company
Net Sales	$	126.3		$	163.9		$	151.1		$	(149.1	)	$	292.2
Cost of Sales	85.1			137.2			101.8			(149.1		)	175.0
Gross Profit	41.2			26.7			49.3			—			117.2
Operating Expense:
Research and Development Expense	6.4			0.4			1.1			—			7.9
Selling and Administrative Expense	28.6			19.3			42.4			—			90.3
Total Operating Expense	35.0			19.7			43.5			—			98.2
Profit from Operations	6.2			7.0			5.8			—			19.0
Other Income (Expense):
Equity in Earnings of Affiliates	10.0			0.6			1.4			(12.0		)	—
Interest (Expense) Income, Net	(5.4		)	—			0.3			—			(5.1		)
Intercompany Interest Income (Expense)	3.6			(1.4		)	(2.2		)	—			—
Net Foreign Currency Transaction (Losses) Gains	(0.6		)	—			0.3			—			(0.3		)
Other (Expense) Income, Net	(0.7		)	(0.6		)	0.8			—			(0.5		)
Total Other Income (Expense), Net	6.9			(1.4		)	0.6			(12.0		)	(5.9		)
Profit Before Income Taxes	13.1			5.6			6.4			(12.0		)	13.1
Income Tax Expense (Benefit)	0.4			1.4			—			(1.4		)	0.4
Net Earnings Including Noncontrolling Interest	12.7			4.2			6.4			(10.6		)	12.7
Net Earnings Attributable to Tennant Company	$	12.7		$	4.2		$	6.4		$	(10.6	)	$	12.7

Condensed Consolidated Statement of Earnings
For the six months ended June 30, 2018
(in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Tennant Company
Net Sales	$	240.0		$	312.3		$	291.5		$	(278.8	)	$	565.0
Cost of Sales	162.3			260.3			193.6			(277.5		)	338.7
Gross Profit	77.7			52.0			97.9			(1.3		)	226.3
Operating Expense:
Research and Development Expense	12.5			0.6			2.8			—			15.9
Selling and Administrative Expense	57.7			39.0			84.3			—			181.0
Total Operating Expense	70.2			39.6			87.1			—			196.9
Profit from Operations	7.5			12.4			10.8			(1.3		)	29.4
Other Income (Expense):
Equity in Earnings of Affiliates	14.4			1.1			4.0			(19.5		)	—
Interest (Expense) Income, Net	(10.5		)	—			0.4			—			(10.1		)
Intercompany Interest Income (Expense)	7.3			(2.8		)	(4.5		)	—			—
Net Foreign Currency Transaction (Losses) Gains	(0.3		)	—			(0.8		)	—			(1.1		)
Other (Expense) Income, Net	(0.9		)	(1.2		)	1.5			(0.1		)	(0.7		)
Total Other Income (Expense), Net	10.0			(2.9		)	0.6			(19.6		)	(11.9		)
Profit Before Income Taxes	17.5			9.5			11.4			(20.9		)	17.5
Income Tax Expense	1.4			2.3			1.6			(3.9		)	1.4
Net Earnings Including Noncontrolling Interest	16.1			7.2			9.8			(17.0		)	16.1
Net Earnings Attributable to Noncontrolling Interest	$	0.1		$	—		$	0.1		$	(0.1	)	$	0.1
Net Earnings Attributable to Tennant Company	$	16.0		$	7.2		$	9.7		$	(16.9	)	$	16.0

Condensed Consolidated Statements of Comprehensive Income

Condensed Consolidated Statement of Comprehensive Income (Loss)
For the three months ended June 30, 2019
(in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Tennant Company
Net Earnings Including Noncontrolling Interest	$	14.8		$	4.0		$	2.7		$	(6.7	)	$	14.8
Other Comprehensive Income (Loss):
Foreign currency translation adjustments	1.3			(0.2		)	(21.9		)	22.1			1.3
Pension and retiree medical benefits	—			—			—			—			—
Cash flow hedge	1.3			—			—			—			1.3
Income Taxes:
Foreign currency translation adjustments	0.1			—			0.9			(0.9		)	0.1
Pension and retiree medical benefits	—			—			0.3			(0.3		)	—
Cash flow hedge	(0.3		)	—			—			—			(0.3		)
Total Other Comprehensive Income (Loss), net of tax	2.4			(0.2		)	(20.7		)	20.9			2.4
Total Comprehensive Income (Loss) Including Noncontrolling Interest	17.2			3.8			(18.0		)	14.2			17.2
Comprehensive Income (Loss) Attributable to Tennant Company	$	17.2		$	3.8		$	(18.0	)	$	14.2		$	17.2

Condensed Consolidated Statement of Comprehensive Income (Loss)
For the six months ended June 30, 2019
(in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Tennant Company
Net Earnings Including Noncontrolling Interest	$	20.2		$	8.1		$	0.8		$	(8.9	)	$	20.2
Other Comprehensive Loss:
Foreign currency translation adjustments	(0.9		)	(0.2		)	(0.7		)	0.9			(0.9		)
Pension and retiree medical benefits	—			—			—			—			—
Cash flow hedge	2.7			—			—			—			2.7
Income Taxes:
Foreign currency translation adjustments	—			—			1.0			(1.0		)	—
Pension and retiree medical benefits	—			—			—			—			—
Cash flow hedge	(0.7		)	—			—			—			(0.7		)
Total Other Comprehensive Income (Loss), net of tax	1.1			(0.2		)	0.3			(0.1		)	1.1
Total Comprehensive Income (Loss) Including Noncontrolling Interest	21.3			7.9			1.1			(9.0		)	21.3
Comprehensive Income (Loss) Attributable to Tennant Company	$	21.3		$	7.9		$	1.1		$	(9.0	)	$	21.3

Condensed Consolidated Statement of Comprehensive (Loss) Income
For the three months ended June 30, 2018
(in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Tennant Company
Net Earnings Including Noncontrolling Interest	$	12.7		$	4.2		$	6.4		$	(10.6	)	$	12.7
Other Comprehensive Loss:
Foreign currency translation adjustments	(19.5		)	(0.3		)	(24.3		)	24.6			(19.5		)
Pension and retiree medical benefits	—			—			—			—			—
Cash flow hedge	1.4			—			—			—			1.4
Income Taxes:
Foreign currency translation adjustments	0.3			—			0.3			(0.3		)	0.3
Pension and retiree medical benefits	—			—			—			—			—
Cash flow hedge	(0.3		)	—			—			—			(0.3		)
Total Other Comprehensive Loss, net of tax	(18.1		)	(0.3		)	(24.0		)	24.3			(18.1		)
Total Comprehensive (Loss) Income Including Noncontrolling Interest	(5.4		)	3.9			(17.6		)	13.7			(5.4		)
Comprehensive (Loss) Income Attributable to Tennant Company	$	(5.4	)	$	3.9		$	(17.6	)	$	13.7		$	(5.4	)

Condensed Consolidated Statement of Comprehensive Income (Loss)
For the six months ended June 30, 2018
(in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Tennant Company
Net Earnings Including Noncontrolling Interest	$	16.1		$	7.2		$	9.8		$	(17.0	)	$	16.1
Other Comprehensive Loss:
Foreign currency translation adjustments	(11.1		)	(0.5		)	(16.4		)	16.9			(11.1		)
Pension and retiree medical benefits	0.1			—			—			—			0.1
Cash flow hedge	(1.3		)	—			—			—			(1.3		)
Income Taxes:
Foreign currency translation adjustments	0.2			—			0.2			(0.2		)	0.2
Pension and retiree medical benefits	(0.2		)	—			—			—			(0.2		)
Cash flow hedge	(0.8		)	—			—			—			(0.8		)
Total Other Comprehensive Loss, net of tax	(13.1		)	(0.5		)	(16.2		)	16.7			(13.1		)
Total Comprehensive Income (Loss) Including Noncontrolling Interest	3.0			6.7			(6.4		)	(0.3		)	3.0
Comprehensive Income Attributable to Noncontrolling Interest	0.1			—			0.1			(0.1		)	0.1
Comprehensive Income (Loss) Attributable to Tennant Company	$	2.9		$	6.7		$	(6.5	)	$	(0.2	)	$	2.9

Condensed Consolidated Balance Sheets

Condensed Consolidated Balance Sheet
As of June 30, 2019
(in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Tennant Company
ASSETS
Current Assets:
Cash, Cash Equivalents, and Restricted Cash	$	11.7		$	1.0		$	42.7		$	—		$	55.4
Net Receivables	1.0			104.6			126.4			—			232.0
Intercompany Receivables	31.8			119.0			—			(150.8		)	—
Inventories	42.5			18.8			111.7			(13.5		)	159.5
Prepaid and Other Current Assets	19.2			0.8			12.2			0.3			32.5
Total Current Assets	106.2			244.2			293.0			(164.0		)	479.4
Property, Plant and Equipment	248.2			13.2			152.6			—			414.0
Accumulated Depreciation	(166.9		)	(6.9		)	(66.9		)	—			(240.7		)
Property, Plant and Equipment, Net	81.3			6.3			85.7			—			173.3
Operating Lease Assets	5.7			9.8			29.9			—			45.4
Investment in Affiliates	409.5			13.1			40.0			(462.6		)	—
Intercompany Loans	300.5			—			—			(300.5		)	—
Goodwill	12.9			1.7			178.7			—			193.3
Intangible Assets, Net	3.6			2.6			143.9			—			150.1
Other Assets	8.4			3.2			17.7			—			29.3
Total Assets	$	928.1		$	280.9		$	788.9		$	(927.1	)	$	1,070.8
LIABILITIES AND TOTAL EQUITY
Current Liabilities:
Current Portion of Long-Term Debt	$	7.0		$	—		$	1.3		$	—		$	8.3
Accounts Payable	39.9			5.5			53.3			—			98.7
Intercompany Payables	118.7			—			32.1			(150.8		)	—
Employee Compensation and Benefits	13.2			12.0			25.0			—			50.2
Other Current Liabilities	29.0			19.3			53.9			0.3			102.5
Total Current Liabilities	207.8			36.8			165.6			(150.5		)	259.7
Long-Term Liabilities:
Long-Term Debt	344.8			—			1.3			—			346.1
Intercompany Loans	3.6			128.0			168.9			(300.5		)	—
Long-Term Operating Lease Liabilities	4.7			4.6			19.8			—			29.1
Employee-Related Benefits	11.1			1.6			7.9			—			20.6
Deferred Income Taxes	—			—			45.5			—			45.5
Other Liabilities	20.9			3.0			10.7			—			34.6
Total Long-Term Liabilities	385.1			137.2			254.1			(300.5		)	475.9
Total Liabilities	592.9			174.0			419.7			(451.0		)	735.6
Equity:
Common Stock	6.8			—			11.1			(11.1		)	6.8
Additional Paid-In Capital	34.5			77.6			417.4			(495.0		)	34.5
Retained Earnings	328.5			30.7			(1.7		)	(29.0		)	328.5
Accumulated Other Comprehensive Loss	(36.1		)	(1.4		)	(59.1		)	60.5			(36.1		)
Total Tennant Company Shareholders' Equity	333.7			106.9			367.7			(474.6		)	333.7
Noncontrolling Interest	1.5			—			1.5			(1.5		)	1.5
Total Equity	335.2			106.9			369.2			(476.1		)	335.2
Total Liabilities and Total Equity	$	928.1		$	280.9		$	788.9		$	(927.1	)	$	1,070.8

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 six months ended June 30, 2019
(in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Tennant Company
OPERATING ACTIVITIES
Net Cash Provided by (Used in) Operating Activities	$	10.1		$	(0.5	)	$	1.3		$	—		$	10.9
INVESTING ACTIVITIES
Purchases of Property, Plant and Equipment	(19.9		)	(0.1		)	(5.4		)	—			(25.4		)
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	—			—			(8.9		)	—			(8.9		)
Purchase of Intangible Assets	—			—			(0.4		)	—			(0.4		)
Loan Payments from Parent	—			—			(0.4		)	0.4			—
Net Cash Used in Investing Activities	(19.9		)	(0.1		)	(15.0		)	0.4			(34.6		)
FINANCING ACTIVITIES
Proceeds from Credit Facility Borrowings	25.0			—			—			—			25.0
Repayments of Debt	(21.8		)	—			(4.1		)	—			(25.9		)
Change in Finance Lease Obligations	—			—			(0.1		)	—			(0.1		)
Loan Payments to Subsidiaries	0.4			—			—			(0.4		)	—
Proceeds from Issuances of Common Stock	1.2			—			—			—			1.2
Purchase of Noncontrolling Owner Interest	—			—			(0.5		)	—			(0.5		)
Dividends Paid	(8.0		)	—			—			—			(8.0		)
Net Cash Used in Financing Activities	(3.2		)	—			(4.7		)	(0.4		)	(8.3		)
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash	(0.1		)	—			1.4			—			1.3
Net Decrease in Cash, Cash Equivalents and Restricted Cash	(13.1		)	(0.6		)	(17.0		)	—			(30.7		)
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	$	11.7		$	1.0		$	42.7		$	—		$	55.4

Condensed Consolidated Statement of Cash Flows
For the six months ended June 30, 2018
(in millions)	Parent			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Total Tennant Company
OPERATING ACTIVITIES
Net Cash Provided by (Used in) Operating Activities	$	27.0		$	1.4	$	(2.4	)	$	—		$	26.0
INVESTING ACTIVITIES
Purchases of Property, Plant and Equipment	(2.3		)	—		(5.4		)	—			(7.7		)
Proceeds from Disposal of Property, Plant and Equipment	—			—		0.1			—			0.1
Proceeds from Principal Payments Received on Long-Term Note Receivable	—			—		0.7			—			0.7
Purchase of Intangible Asset	(1.0		)	—		(0.2		)	—			(1.2		)
Loan Payments from Parent	—			—		1.5			(1.5		)	—
Net Cash Used in Investing Activities	(3.3		)	—		(3.3		)	(1.5		)	(8.1		)
FINANCING ACTIVITIES
Loan Payments to Subsidiaries	(1.5		)	—		—			1.5			—
Repayment of Debt	(18.0		)	—		(0.1		)	—			(18.1		)
Change in Finance Lease Obligations	—			—		0.1			—			0.1
Proceeds from Issuance of Common Stock	3.7			—		—			—			3.7
Dividends Paid	(7.6		)	—		—			—			(7.6		)
Net Cash (Used in) Provided by Financing Activities	(23.4		)	—		—			1.5			(21.9		)
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash	0.1			—		(0.7		)	—			(0.6		)
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash	0.4			1.4		(6.4		)	—			(4.6		)
Cash, Cash Equivalents and Restricted Cash at Beginning of Period	18.5			0.5		40.0			—			59.0
Cash, Cash Equivalents and Restricted Cash at End of Period	$	18.9		$	1.9	$	33.6		$	—		$	54.4