Separate Financial Information of Guarantor Subsidiaries (Tables)

12 Months Ended

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The following condensed consolidated financial information presents the Condensed Consolidated Statements of Earnings, Comprehensive Income and Cash Flows for each of the years in the three year period ended December 31, 2019, and the related Condensed Consolidated Balance Sheets as of December 31, 2019 and 2018, of Tennant Company ("Parent"), the Guarantor Subsidiaries on a combined basis, the Non-Guarantor Subsidiaries on a combined basis and elimination entries necessary to consolidate the Parent with the Guarantor and Non-Guarantor Subsidiaries. The following condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company and notes thereto of which this note is an integral part.



Condensed Consolidated Statement of Earnings
For the year ended December 31, 2019
(in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Tennant Company
Net Sales	$	529.6		$	666.2		$	554.6		$	(612.8	)	$	1,137.6
Cost of Sales	347.2			563.0			376.1			(610.4		)	675.9
Gross Profit	182.4			103.2			178.5			(2.4		)	461.7
Operating Expense:
Research and Development Expense	25.9			1.1			5.7			—			32.7
Selling and Administrative Expense	117.8			76.4			163.0			—			357.2
Total Operating Expense	143.7			77.5			168.7			—			389.9
Profit (Loss) from Operations	38.7			25.7			9.8			(2.4		)	71.8
Other Income (Expense):
Equity in Earnings of Affiliates	21.0			2.0			2.8			(25.8		)	—
Interest (Expense) Income, Net	(17.4		)	—			(0.4		)	—			(17.8		)
Intercompany Interest Income (Expense)	13.9			(5.7		)	(8.2		)	—			—
Net Foreign Currency Transaction Losses	0.3			—			(1.0		)	—			(0.7		)
Other (Expense) Income, Net	(2.2		)	(1.3		)	4.3			(0.1		)	0.7
Total Other Income (Expense), Net	15.6			(5.0		)	(2.5		)	(25.9		)	(17.8		)
Profit (Loss) Before Income Taxes	54.3			20.7			7.3			(28.3		)	54.0
Income Tax Expense (Benefit)	8.4			4.9			(1.2		)	(4.0		)	8.1
Net Earnings (Loss) Including Noncontrolling Interest	45.9			15.8			8.5			(24.3		)	45.9
Net Earnings (Loss) Attributable to Noncontrolling Interest	0.1			—			0.1			(0.1		)	0.1
Net Earnings (Loss) Attributable to Tennant Company	$	45.8		$	15.8		$	8.4		$	(24.2	)	$	45.8



Condensed Consolidated Statement of Earnings
For the year ended December 31, 2018
(in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Tennant Company
Net Sales	$	494.4		$	634.3		$	570.6		$	(575.8	)	$	1,123.5
Cost of Sales	336.4			533.8			383.0			(574.7		)	678.5
Gross Profit	158.0			100.5			187.6			(1.1		)	445.0
Operating Expense:
Research and Development Expense	24.5			1.0			5.2			—			30.7
Selling and Administrative Expense	116.5			76.6			161.9			1.3			356.3
Total Operating Expense	141.0			77.6			167.1			1.3			387.0
Profit (Loss) from Operations	17.0			22.9			20.5			(2.4		)	58.0
Other Income (Expense):
Equity in Earnings of Affiliates	27.4			2.2			5.4			(35.0		)	—
Interest (Expense) Income, Net	(20.5		)	—			0.2			—			(20.3		)
Intercompany Interest Income (Expense)	14.6			(5.8		)	(8.8		)	—			—
Net Foreign Currency Transaction Losses	(0.4		)	—			(0.7		)	—			(1.1		)
Other (Expense) Income, Net	(2.3		)	(2.4		)	2.8			1.1			(0.8		)
Total Other Income (Expense), Net	18.8			(6.0		)	(1.1		)	(33.9		)	(22.2		)
Profit (Loss) Before Income Taxes	35.8			16.9			19.4			(36.3		)	35.8
Income Tax Expense (Benefit)	2.3			4.0			0.4			(4.4		)	2.3
Net Earnings (Loss) Including Noncontrolling Interest	33.5			12.9			19.0			(31.9		)	33.5
Net Earnings (Loss) Attributable to Noncontrolling Interest	0.1			—			0.1			(0.1		)	0.1
Net Earnings (Loss) Attributable to Tennant Company	$	33.4		$	12.9		$	18.9		$	(31.8	)	$	33.4



Condensed Consolidated Statement of Earnings
For the year ended December 31, 2017
(in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Tennant Company
Net Sales	$	454.7		$	594.4		$	471.6		$	(517.6	)	$	1,003.1
Cost of Sales	311.9			489.0			321.8			(519.4		)	603.3
Gross Profit	142.8			105.4			149.8			1.8			399.8
Operating Expense:
Research and Development Expense	27.2			0.3			4.5			—			32.0
Selling and Administrative Expense	110.4			78.5			145.9			—			334.8
Total Operating Expense	137.6			78.8			150.4			—			366.8
Profit (Loss) from Operations	5.2			26.6			(0.6		)	1.8			33.0
Other Income (Expense):
Equity in Earnings of Affiliates	12.7			2.0			28.9			(43.6		)	—
Interest Expense, Net	(22.7		)	—			(0.3		)	—			(23.0		)
Intercompany Interest Income (Expense)	12.5			(5.8		)	(6.7		)	—			—
Net Foreign Currency Transaction Gains (Losses)	0.9			—			(4.3		)	—			(3.4		)
Other (Expense) Income, Net	(9.9		)	(0.7		)	2.8			(0.1		)	(7.9		)
Total Other Income (Expense), Net	(6.5		)	(4.5		)	20.4			(43.7		)	(34.3		)
Profit (Loss) Before Income Taxes	(1.3		)	22.1			19.8			(41.9		)	(1.3		)
Income Tax Expense (Benefit)	4.9			8.1			(0.1		)	(8.0		)	4.9
Net Earnings (Loss) Attributable to Tennant Company	$	(6.2	)	$	14.0		$	19.9		$	(33.9	)	$	(6.2	)

Condensed Statement of Comprehensive Income



Condensed Consolidated Statement of Comprehensive Income
For the year ended December 31, 2019
(in millions)	Parent			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Total Tennant Company
Net Earnings (Loss) Including Noncontrolling Interest	$	45.9		$	15.8	$	8.5		$	(24.3	)	$	45.9
Other Comprehensive Income (Loss):
Foreign currency translation adjustments	(4.5		)	0.5		(4.9		)	4.4			(4.5		)
Pension and retiree medical benefits	(0.5		)	—		(0.4		)	0.4			(0.5		)
Cash flow hedge	4.6			—		—			—			4.6
Income Taxes:
Foreign currency translation adjustments	0.1			—		0.1			(0.1		)	0.1
Pension and retiree medical benefits	0.1			—		0.1			(0.1		)	0.1
Cash flow hedge	(1.1		)	—		—			—			(1.1		)
Total Other Comprehensive Income (Loss), net of tax	(1.3		)	0.5		(5.1		)	4.6			(1.3		)
Total Comprehensive Income (Loss) Including Noncontrolling Interest	44.6			16.3		3.4			(19.7		)	44.6
Comprehensive Income (Loss) Attributable to Noncontrolling Interest	0.1			—		0.1			(0.1		)	0.1
Comprehensive Income (Loss) Attributable to Tennant Company	$	44.5		$	16.3	$	3.3		$	(19.6	)	$	44.5



Condensed Consolidated Statement of Comprehensive Income
For the year ended December 31, 2018
(in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Tennant Company
Net Earnings (Loss) Including Noncontrolling Interest	$	33.5		$	12.9		$	19.0		$	(31.9	)	$	33.5
Other Comprehensive Income (Loss):
Foreign currency translation adjustments	(16.2		)	(1.0		)	(21.4		)	22.4			(16.2		)
Pension and retiree medical benefits	1.7			—			1.2			(1.2		)	1.7
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	(0.5		)	—			(0.2		)	0.2			(0.5		)
Cash flow hedge	(1.4		)	—			—			—			(1.4		)
Total Other Comprehensive Income (Loss), net of tax	(14.9		)	(1.0		)	(20.2		)	21.2			(14.9		)
Total Comprehensive Income (Loss) Including Noncontrolling Interest	18.6			11.9			(1.2		)	(10.7		)	18.6
Comprehensive Income (Loss) Attributable to Noncontrolling Interest	0.1			—			0.1			(0.1		)	0.1
Comprehensive Income (Loss) Attributable to Tennant Company	$	18.5		$	11.9		$	(1.3	)	$	(10.6	)	$	18.5



Condensed Consolidated Statement of Comprehensive Income
For the year ended December 31, 2017
(in millions)	Parent			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Total Tennant Company
Net Earnings (Loss)	$	(6.2	)	$	14.0	$	19.9		$	(33.9	)	$	(6.2	)
Other Comprehensive Income (Loss):
Foreign currency translation adjustments	28.3			1.2		3.0			(4.2		)	28.3
Pension and retiree medical benefits	5.9			—		0.6			(0.6		)	5.9
Cash flow hedge	(7.7		)	—		—			—			(7.7		)
Income Taxes:
Foreign currency translation adjustments	0.3			—		0.3			(0.3		)	0.3
Pension and retiree medical benefits	(2.1		)	—		(0.1		)	0.1			(2.1		)
Cash flow hedge	2.9			—		—			—			2.9
Total Other Comprehensive Income (Loss), net of tax	27.6			1.2		3.8			(5.0		)	27.6
Comprehensive Income (Loss)	$	21.4		$	15.2	$	23.7		$	(38.9	)	$	21.4

Condensed Balance Sheet



Condensed Consolidated Balance Sheet
As of December 31, 2019
(in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Tennant Company
ASSETS
Current Assets:
Cash and Cash Equivalents, and Restricted Cash	$	27.7		$	1.3		$	45.6		$	—		$	74.6
Net Receivables	3.3			99.7			120.3			—			223.3
Intercompany Receivables	35.7			137.7			—			(173.4		)	—
Inventories	39.1			16.9			106.9			(12.8		)	150.1
Prepaid Expenses and Other Current Assets	17.8			1.2			14.0			—			33.0
Total Current Assets	123.6			256.8			286.8			(186.2		)	481.0
Property, Plant and Equipment	246.7			10.0			155.8			—			412.5
Accumulated Depreciation	(164.3		)	(4.2		)	(70.7		)	—			(239.2		)
Property, Plant and Equipment, Net	82.4			5.8			85.1			—			173.3
Operating Lease Assets	5.2			10.3			31.1			—			46.6
Investment in Affiliates	420.7			14.1			39.2			(474.0		)	—
Intercompany Loans	298.2			—			—			(298.2		)	—
Goodwill	12.9			1.7			180.5			—			195.1
Intangible Assets, Net	3.2			2.5			132.0			—			137.7
Other Assets	4.9			4.4			19.9			—			29.2
Total Assets	$	951.1		$	295.6		$	774.6		$	(958.4	)	$	1,062.9
LIABILITIES AND TOTAL EQUITY
Current Liabilities:
Current Portion of Long-Term Debt	$	30.0		$	—		$	1.3		$	—		$	31.3
Accounts Payable	39.4			5.1			49.6			—			94.1
Intercompany Payables	137.5			—			35.9			(173.4		)	—
Employee Compensation and Benefits	19.3			17.5			26.7			—			63.5
Other Current Liabilities	24.9			20.5			40.6			—			86.0
Total Current Liabilities	251.1			43.1			154.1			(173.4		)	274.9
Long-Term Liabilities:
Long-Term Debt	306.2			—			1.3			—			307.5
Intercompany Loans	2.1			128.0			168.1			(298.2		)	—
Long-Term Operating Lease Liabilities	4.0			5.3			21.0			—			30.3
Employee-Related Benefits	10.4			1.4			7.6			—			19.4
Deferred Income Taxes	—			—			41.7			—			41.7
Other Liabilities	16.0			3.0			8.8			—			27.8
Total Long-Term Liabilities	338.7			137.7			248.5			(298.2		)	426.7
Total Liabilities	589.8			180.8			402.6			(471.6		)	701.6
Equity:
Common Stock	6.9			—			11.1			(11.1		)	6.9
Additional Paid-In Capital	45.5			77.6			417.4			(495.0		)	45.5
Retained Earnings	346.0			38.4			6.0			(44.4		)	346.0
Accumulated Other Comprehensive Loss	(38.5		)	(1.2		)	(63.9		)	65.1			(38.5		)
Total Tennant Company Shareholders’ Equity	359.9			114.8			370.6			(485.4		)	359.9
Noncontrolling Interest	1.4			—			1.4			(1.4		)	1.4
Total Equity	361.3			114.8			372.0			(486.8		)	361.3
Total Liabilities and Total Equity	$	951.1		$	295.6		$	774.6		$	(958.4	)	$	1,062.9



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 Expenses 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
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 SHAREHOLDERS' 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		)	—
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
Shareholders' 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 Cash Flow Statement



Condensed Consolidated Statement of Cash Flows
For the year ended December 31, 2019
(in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Tennant Company
OPERATING ACTIVITIES
Net Cash Provided by Operating Activities	$	54.2		$	0.1		$	17.6		$	—		$	71.9
INVESTING ACTIVITIES
Purchases of Property, Plant and Equipment	(27.5		)	(0.4		)	(10.5		)	—			(38.4		)
Proceeds from Disposals of Property, Plant and Equipment	0.1			—			—			—			0.1
Proceeds from Principal Payments Received on Long-Term Note Receivable	—			—			2.9			—			2.9
Acquisition of Business, Net of Cash Acquired	—			—			(19.7		)	—			(19.7		)
Purchases of Intangible Asset	—			—			(0.5		)	—			(0.5		)
Loan Payments Received by Subsidiary from Parent	—			—			1.1			(1.1		)	—
Net Cash Used in Investing Activities	(27.4		)	(0.4		)	(26.7		)	(1.1		)	(55.6		)
FINANCING ACTIVITIES
Proceed from Debt	25.0			—			—			—			25.0
Loan Repayments made to Subsidiary from Parent	(1.1		)	—			—			1.1			—
Repayments of Debt	(37.7		)	—			(4.1		)	—			(41.8		)
Change in Finance Lease Obligations	—			—			(0.2		)	—			(0.2		)
Proceeds from Issuances of Common Stock	6.1			—			—			—			6.1
Purchase of Noncontrolling Owner Interest	—			—			(0.5		)	—			(0.5		)
Dividends Paid	(16.0		)	—			—			—			(16.0		)
Net Cash (Used in) Provided by Financing Activities	(23.7		)	—			(4.8		)	1.1			(27.4		)
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash	(0.2		)	—			(0.2		)	—			(0.4		)
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	2.9			(0.3		)	(14.1		)	—			(11.5		)
Cash, Cash Equivalents and Restricted Cash at Beginning of Year	24.8			1.6			59.7			—			86.1
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF YEAR	$	27.7		$	1.3		$	45.6		$	—		$	74.6



Condensed Consolidated Statement of Cash Flows
For the year ended December 31, 2018
(in millions)	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Tennant Company
OPERATING ACTIVITIES
Net Cash Provided by Operating Activities	$	68.1		$	1.2		$	10.9		$	(0.2	)	$	80.0
INVESTING ACTIVITIES
Purchases of Property, Plant and Equipment	(6.8		)	(0.1		)	(11.9		)	—			(18.8		)
Proceeds from Disposals of Property, Plant and Equipment	—			—			0.1			—			0.1
Proceeds from Principal Payments received on Long-Term Note Receivable	—			—			1.4			—			1.4
Proceeds from Sale of Business	—			—			4.0			—			4.0
Purchase of Intangible Asset	(2.5		)	—			(0.3		)	—			(2.8		)
Change in Investments in Subsidiaries	(15.6		)	—			—			15.6			—
Loan Payments from Subsidiaries	1.2			—			—			(1.2		)	—
Loan Payments from Parent	—			—			1.8			(1.8		)	—
Net Cash (Used in) Provided by Investing Activities	(23.7		)	(0.1		)	(4.9		)	12.6			(16.1		)
FINANCING ACTIVITIES
Proceeds from Debt	11.0			—			3.9			—			14.9
Loan Repayments to Subsidiary from Parent	(1.8		)	—			—			1.8			—
Loan Repayments to Parent from Subsidiary	—			—			(1.2		)	1.2			—
Change in Subsidiary Equity	—			—			15.6			(15.6		)	—
Payment of LongTerm Debt	(38.0		)	—			(0.3		)	—			(38.3		)
Proceeds from Issuances of Common Stock	5.9			—			—			—			5.9
Dividends Paid	(15.3		)	—			(0.2		)	0.2			(15.3		)
Net Cash (Used in) Provided by Financing Activities	(38.2		)	—			17.8			(12.4		)	(32.8		)
Effect of Exchange Rate Changes on Cash and Cash Equivalents	0.2			—			(4.2		)	—			(4.0		)
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	6.4			1.1			19.6			—			27.1
Cash, Cash Equivalents and Restricted Cash at Beginning of Year	18.4			0.5			40.1			—			59.0
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF YEAR	$	24.8		$	1.6		$	59.7		$	—		$	86.1



Condensed Consolidated Statement of Cash Flows
For the year ended December 31, 2017
(in millions)	Parent			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Total Tennant Company
OPERATING ACTIVITIES
Net Cash Provided by Operating Activities	$	27.0		$	0.3	$	27.7		$	(0.8	)	$	54.2
INVESTING ACTIVITIES
Purchases of Property, Plant and Equipment	(9.5		)	—		(10.9		)	—			(20.4		)
Proceeds from Disposals of Property, Plant and Equipment	—			—		2.5			—			2.5
Proceeds from Principal Payments Received on Long-Term Note Receivable	—			—		0.7			—			0.7
Acquisition of Businesses, Net of Cash Acquired	(0.3		)	—		(353.8		)	—			(354.1		)
Issuance of Long-Term Note Receivable	—			—		(1.5		)	—			(1.5		)
Purchase of Intangible Asset	(2.5		)	—		—			—			(2.5		)
Loan Borrowings (Payments) from Subsidiaries	(159.8		)	—		(5.0		)	164.8			—
Change in Investments in Subsidiaries	(199.0		)	—		—			199.0			—
Net Cash (Used in) Provided by Investing Activities	(371.1		)	—		(368.0		)	363.8			(375.3		)
FINANCING ACTIVITIES
Proceeds from Debt	743.0			—		—			—			743.0
Loan Borrowings (Payments) from Parent	5.0			—		159.8			(164.8		)	—
Change in Subsidiary Entity	—			—		199.0			(199.0		)	—
Repayments of Debt	(399.2		)	—		(0.1		)	—			(399.3		)
Payments of Debt Issuance Costs	(16.5		)	—		—			—			(16.5		)
Change in Finance Lease Obligations	—			—		0.3			—			0.3
Proceeds from Issuances of Common Stock	6.9			—		—			—			6.9
Dividends Paid	(15.0		)	—		(0.8		)	0.8			(15.0		)
Net Cash Provided by (Used in) Financing Activities	324.2			—		358.2			(363.0		)	319.4
Effect of Exchange Rate Changes on Cash and Cash Equivalents	(0.1		)	—		2.3			—			2.2
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	(20.0		)	0.3		20.2			—			0.5
Cash, Cash Equivalents and Restricted Cash at Beginning of Year	38.4			0.2		19.9			—			58.5
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF YEAR	$	18.4		$	0.5	$	40.1		$	—		$	59.0