XML 14 R40.htm IDEA: XBRL DOCUMENT v3.20.1
Separate Financial Information of Guarantor Subsidiaries (Tables)
 3 Months Ended
Mar. 31, 2020
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, 2020
(in millions)
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Total Tennant Company
Net Sales
$
116.9

 
$
150.5

 
$
121.3

 
$
(136.6
)
 
$
252.1

Cost of Sales
76.4

 
125.5

 
82.5

 
(136.4
)
 
148.0

Gross Profit
40.5

 
25.0

 
38.8

 
(0.2
)
 
104.1

 
 

 
 

 
 

 
 
 
 
Operating Expense:
 
 
 
 
 
 
 
 
 
Research and Development Expense
5.9

 
0.3

 
1.2

 
—

 
7.4

Selling and Administrative Expense
27.4

 
18.6

 
36.3

 
—

 
82.3

Total Operating Expense
33.3

 
18.9

 
37.5

 
—

 
89.7

Profit from Operations
7.2

 
6.1

 
1.3

 
(0.2
)
 
14.4

 
 

 
 

 
 

 
 
 
 
Other Income (Expense):
 
 
 
 
 
 
 
 
 
Equity in Earnings of Affiliates
—

 
0.5

 
0.4

 
(0.9
)
 
—

Interest (Expense) Income, Net
(4.2
)
 
—

 
—

 
—

 
(4.2
)
Intercompany Interest Income (Expense)
3.4

 
(1.4
)
 
(2.0
)
 
—

 
—

Net Foreign Currency Transaction Loss (Gain)
—

 
(0.1
)
 
(4.0
)
 
—

 
(4.1
)
Other (Expense) Income, Net
(0.1
)
 
(0.3
)
 
0.6

 
—

 
0.2

Total Other Expense, Net
(0.9
)
 
(1.3
)
 
(5.0
)
 
(0.9
)
 
(8.1
)
 
 
 
 
 
 
 
 
 
 
Profit Before Income Taxes
6.3

 
4.8

 
(3.7
)
 
(1.1
)
 
6.3

Income Tax Expense (Benefit)
1.1

 
1.1

 
(0.1
)
 
(1.0
)
 
1.1

Net Earnings Including Noncontrolling Interest
5.2

 
3.7

 
(3.6
)
 
(0.1
)
 
5.2

Net Earnings Attributable to Tennant Company
$
5.2

 
$
3.7

 
$
(3.6
)
 
$
(0.1
)
 
$
5.2


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 Loss (Gain)
—

 
—

 
0.2

 
—

 
0.2

Other (Expense) Income, Net
(0.2
)
 
(0.4
)
 
0.4

 
—

 
(0.2
)
Total Other Income (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 (Benefit)
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 Statements of Comprehensive Income
Condensed Consolidated Statement of Comprehensive Income (Loss)
For the three months ended March 31, 2020
(in millions)
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Total Tennant Company
Net Earnings Including Noncontrolling Interest
$
5.2

 
$
3.7

 
$
(3.6
)
 
$
(0.1
)
 
$
5.2

Other Comprehensive Loss:
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
(11.3
)
 
(0.3
)
 
(20.0
)
 
20.3

 
(11.3
)
Cash flow hedge
4.8

 
—

 
—

 
—

 
4.8

Income Taxes:
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
—

 
—

 
—

 
—

 
—

Cash flow hedge
(1.1
)
 
—

 
—

 
—

 
(1.1
)
Total Other Comprehensive Loss, net of tax
(7.6
)
 
(0.3
)
 
(20.0
)
 
20.3

 
(7.6
)
 
 
 
 
 
 
 
 
 
 
Total Comprehensive (Loss) Income Including Noncontrolling Interest
(2.4
)
 
3.4

 
(23.6
)
 
20.2

 
(2.4
)
Comprehensive (Loss) Income Attributable to Tennant Company
$
(2.4
)
 
$
3.4

 
$
(23.6
)
 
$
20.2

 
$
(2.4
)











Condensed Consolidated Statement of Comprehensive Income (Loss)
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) Income, net of tax
(1.3
)
 
—

 
(21.6
)
 
21.6

 
(1.3
)
 
 
 
 
 
 
 
 
 
 
Total Comprehensive (Loss) Income Including Noncontrolling Interest
4.1

 
4.1

 
(23.6
)
 
19.5

 
4.1

Comprehensive (Loss) Income Attributable to Tennant Company
$
4.1

 
$
4.1

 
$
(23.6
)
 
$
19.5

 
$
4.1
Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheet
As of March 31, 2020
(in millions)
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Total Tennant Company
ASSETS
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
Cash, Cash Equivalents, and Restricted Cash
$
150.3

 
$
1.0

 
$
40.8

 
$
—

 
$
192.1

Net Receivables
1.4

 
95.5

 
110.2

 
—

 
207.1

Intercompany Receivables
36.1

 
117.4

 
—

 
(153.5
)
 
—

Inventories
38.5

 
18.0

 
111.4

 
(12.7
)
 
155.2

Prepaid and Other Current Assets
14.7

 
0.9

 
15.0

 
0.2

 
30.8

Total Current Assets
241.0

 
232.8

 
277.4

 
(166.0
)
 
585.2

Property, Plant and Equipment
252.1

 
10.1

 
153.8

 
—

 
416.0

Accumulated Depreciation
(167.3
)
 
(4.4
)
 
(70.4
)
 
—

 
(242.1
)
Property, Plant and Equipment, Net
84.8

 
5.7

 
83.4

 
—

 
173.9

Operating Lease Assets
4.9

 
10.2

 
27.7

 
—

 
42.8

Investment in Affiliates
393.3

 
14.3

 
31.1

 
(438.7
)
 
—

Intercompany Loans
295.5

 
—

 
—

 
(295.5
)
 
—

Goodwill
12.9

 
1.7

 
176.6

 
—

 
191.2

Intangible Assets, Net
3.0

 
2.4

 
124.2

 
—

 
129.6

Other Assets
4.9

 
5.0

 
17.6

 
—

 
27.5

Total Assets
$
1,040.3

 
$
272.1

 
$
738.0

 
$
(900.2
)
 
$
1,150.2

LIABILITIES AND TOTAL EQUITY
 
 
 
 
 
 
 
 
 
Current Liabilities:
 
 
 
 
 
 
 
 
 
Current Portion of Long-Term Debt
$
—

 
$
—

 
$
1.1

 
$
—

 
$
1.1

Accounts Payable
40.0

 
5.8

 
50.0

 
—

 
95.8

Intercompany Payables
115.5

 
—

 
38.0

 
(153.5
)
 
—

Employee Compensation and Benefits
9.6

 
7.9

 
22.7

 
—

 
40.2

Other Current Liabilities
29.4

 
17.7

 
40.7

 
0.2

 
88.0

Total Current Liabilities
194.5

 
31.4

 
152.5

 
(153.3
)
 
225.1

Long-Term Liabilities:
 
 
 
 
 
 
 
 
 
Long-Term Debt
461.4

 
—

 
1.1

 
—

 
462.5

Intercompany Loans
2.9

 
128.0

 
164.5

 
(295.4
)
 
—

Long-Term Operating Lease Liabilities
3.6

 
5.2

 
18.5

 
—

 
27.3

Employee-Related Benefits
10.1

 
1.5

 
7.0

 
—

 
18.6

Deferred Income Taxes
—

 
—

 
39.8

 
—

 
39.8

Other Liabilities
9.1

 
2.9

 
6.2

 
—

 
18.2

Total Long-Term Liabilities
487.1

 
137.6

 
237.1

 
(295.4
)
 
566.4

Total Liabilities
681.6

 
169.0

 
389.6

 
(448.7
)
 
791.5

Equity:
 
 
 
 
 
 
 
 
 
Common Stock
6.9

 
—

 
11.1

 
(11.1
)
 
6.9

Additional Paid-In Capital
49.4

 
77.6

 
417.4

 
(495.0
)
 
49.4

Retained Earnings
347.1

 
26.9

 
2.4

 
(29.3
)
 
347.1

Accumulated Other Comprehensive Loss
(46.1
)
 
(1.4
)
 
(83.9
)
 
85.3

 
(46.1
)
Total Tennant Company Shareholders' Equity
357.3

 
103.1

 
347.0

 
(450.1
)
 
357.3

Noncontrolling Interest
1.4

 
—

 
1.4

 
(1.4
)
 
1.4

Total Equity
358.7

 
103.1

 
348.4

 
(451.5
)
 
358.7

Total Liabilities and Total Equity
$
1,040.3

 
$
272.1

 
$
738.0

 
$
(900.2
)
 
$
1,150.2

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, 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 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 Statement Cash Flows
Condensed Consolidated Statement of Cash Flows
For the three months ended March 31, 2020
(in millions)
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Total Tennant Company
OPERATING ACTIVITIES
 
 
 
 
 
 
 
 
 
Net Cash Provided by (Used in) Operating Activities
$
4.0

 
$
(0.2
)
 
$
4.9

 
$
—

 
$
8.7

INVESTING ACTIVITIES
 
 
 
 
 
 
 
 
 
Purchases of Property, Plant and Equipment
(6.2
)
 
(0.1
)
 
(6.1
)
 
—

 
(12.4
)
Proceeds from Disposals of Property, Plant, and Equipment
0.1

 
—

 
—

 
—

 
0.1

Purchase of Intangible Assets
—

 
—

 
(0.1
)
 
—

 
(0.1
)
Loan Payments to Parent
—

 
—

 
(0.9
)
 
0.9

 
—

Net Cash Used in Investing Activities
(6.1
)
 
(0.1
)
 
(7.1
)
 
0.9

 
(12.4
)
FINANCING ACTIVITIES
 
 
 
 
 
 
 
 
 
Proceeds from Credit Facility Borrowings
125.0

 
—

 
—

 
—

 
125.0

Loan Payments from Subsidiaries
0.9

 
—

 
—

 
(0.9
)
 
—

Repayments of Debt
—

 
—

 
(0.3
)
 
—

 
(0.3
)
Change in Finance Lease Obligations
—

 
—

 
(0.1
)
 
—

 
(0.1
)
Proceeds from Issuances of Common Stock
2.4

 
—

 
—

 
—

 
2.4

Dividends Paid
(4.0
)
 
—

 
—

 
—

 
(4.0
)
Net Cash Provided by (Used in) Financing Activities
124.3

 
—

 
(0.4
)
 
(0.9
)
 
123.0

Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash
0.4

 
—

 
(2.2
)
 
—

 
(1.8
)
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash
122.6

 
(0.3
)
 
(4.8
)
 
—

 
117.5

Cash, Cash Equivalents and Restricted Cash at Beginning of Period
27.7

 
1.3

 
45.6

 
—

 
74.6

Cash, Cash Equivalents and Restricted Cash at End of Period
$
150.3

 
$
1.0

 
$
40.8

 
$
—

 
$
192.1

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 Business, Net of Cash, Cash Equivalents and Restricted Cash Acquired
—

 
—

 
(9.0
)
 
—

 
(9.0
)
Purchase of Intangible Asset
—

 
—

 
(0.2
)
 
—

 
(0.2
)
Loan Payments to 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

Repayment of Debt
(4.0
)
 
—

 
(4.0
)
 
—

 
(8.0
)
Change in Finance Lease Obligations
—

 
—

 
(0.1
)
 
—

 
(0.1
)
Loan Payments from Subsidiaries
0.2

 
—

 
—

 
(0.2
)
 
—

Proceeds from Issuance of Common Stock
0.6

 
—

 
—

 
—

 
0.6

Dividends Paid
(4.0
)
 
—

 
—

 
—

 
(4.0
)
Net Cash Provided by (Used in) 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 Increase (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