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Share Name | Share Symbol | Market | Type |
---|---|---|---|
AGCO Corp | NYSE:AGCO | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
1.61 | 1.39% | 117.08 | 117.69 | 114.91 | 115.99 | 1,103,156 | 22:30:00 |
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x
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from _________ to _________
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Delaware
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58-1960019
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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4205 River Green Parkway
Duluth, Georgia
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30096
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(Address of principal executive offices)
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(Zip Code)
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(770) 813-9200
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x
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Large accelerated filer
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Accelerated filer
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o
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Non-accelerated filer
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o
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Smaller reporting company
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o
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Emerging growth company
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(Do not check if a smaller reporting company)
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Page
Numbers
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Item 1.
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Item 2.
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Item 3.
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Item 4.
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Item 1.
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Item 2.
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Item 6.
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PART I.
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FINANCIAL INFORMATION
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ITEM 1.
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FINANCIAL STATEMENTS
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June 30, 2018
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December 31, 2017
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||||
ASSETS
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|||||||
Current Assets:
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Cash and cash equivalents
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$
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280.6
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$
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367.7
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Accounts and notes receivable, net
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1,047.1
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1,019.4
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Inventories, net
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2,131.9
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1,872.9
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Other current assets
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384.3
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367.7
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Total current assets
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3,843.9
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3,627.7
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Property, plant and equipment, net
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1,392.9
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1,485.3
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Investment in affiliates
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411.2
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409.0
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Deferred tax assets
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110.8
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112.2
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Other assets
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153.5
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147.1
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Intangible assets, net
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608.1
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649.0
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Goodwill
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1,503.7
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1,541.4
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Total assets
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$
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8,024.1
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$
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7,971.7
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LIABILITIES AND STOCKHOLDERS’ EQUITY
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|||||||
Current Liabilities:
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Current portion of long-term debt
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$
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17.9
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$
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24.8
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Short-term borrowings
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197.7
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90.8
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Accounts payable
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898.3
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917.5
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Accrued expenses
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1,385.5
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1,407.9
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Other current liabilities
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201.1
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209.6
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Total current liabilities
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2,700.5
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2,650.6
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Long-term debt, less current portion and debt issuance costs
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1,728.0
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1,618.1
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Pensions and postretirement health care benefits
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230.6
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247.3
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Deferred tax liabilities
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122.6
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130.5
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Other noncurrent liabilities
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244.3
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229.9
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Total liabilities
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5,026.0
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4,876.4
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Commitments and contingencies (Note 16)
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Stockholders’ Equity:
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AGCO Corporation stockholders’ equity:
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Preferred stock; $0.01 par value, 1,000,000 shares authorized, no shares issued or outstanding in 2018 and 2017
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—
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—
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Common stock; $0.01 par value, 150,000,000 shares authorized, 79,117,583 and 79,553,825 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively
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0.8
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0.8
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Additional paid-in capital
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121.4
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136.6
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Retained earnings
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4,346.1
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4,253.8
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Accumulated other comprehensive loss
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(1,533.5
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)
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(1,361.6
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)
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Total AGCO Corporation stockholders’ equity
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2,934.8
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3,029.6
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Noncontrolling interests
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63.3
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65.7
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Total stockholders’ equity
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2,998.1
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3,095.3
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Total liabilities and stockholders’ equity
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$
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8,024.1
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$
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7,971.7
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Three Months Ended June 30,
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2018
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2017
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Net sales
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$
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2,537.6
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$
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2,165.2
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Cost of goods sold
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1,981.3
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1,689.8
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Gross profit
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556.3
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475.4
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Selling, general and administrative expenses
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271.8
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234.6
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Engineering expenses
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93.0
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76.8
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Restructuring expenses
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2.7
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0.4
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Amortization of intangibles
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18.2
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13.8
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Bad debt expense
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2.5
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1.5
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Income from operations
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168.1
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148.3
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Interest expense, net
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21.2
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11.3
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Other expense, net
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27.2
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17.6
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Income before income taxes and equity in net earnings of affiliates
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119.7
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119.4
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Income tax provision
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38.5
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36.9
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Income before equity in net earnings of affiliates
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81.2
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82.5
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Equity in net earnings of affiliates
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9.2
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9.1
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Net income
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90.4
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91.6
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Net loss (income) attributable to noncontrolling interests
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1.0
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(0.1
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)
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Net income attributable to AGCO Corporation and subsidiaries
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$
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91.4
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$
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91.5
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Net income per common share attributable to AGCO Corporation and subsidiaries:
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Basic
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$
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1.15
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$
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1.15
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Diluted
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$
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1.14
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$
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1.14
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Cash dividends declared and paid per common share
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$
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0.15
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$
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0.14
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Weighted average number of common and common equivalent shares outstanding:
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Basic
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79.3
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79.5
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Diluted
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80.2
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80.1
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Six Months Ended June 30,
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2018
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2017
|
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Net sales
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$
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4,545.1
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$
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3,792.8
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Cost of goods sold
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3,560.8
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2,987.1
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Gross profit
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984.3
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805.7
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Selling, general and administrative expenses
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536.4
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457.3
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Engineering expenses
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183.9
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149.9
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Restructuring expenses
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8.6
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5.5
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Amortization of intangibles
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33.9
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27.2
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Bad debt expense
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2.9
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1.8
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Income from operations
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218.6
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164.0
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Interest expense, net
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31.5
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22.0
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Other expense, net
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38.7
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30.7
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Income before income taxes and equity in net earnings of affiliates
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148.4
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111.3
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Income tax provision
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49.9
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48.0
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Income before equity in net earnings of affiliates
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98.5
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63.3
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Equity in net earnings of affiliates
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16.9
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20.1
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Net income
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115.4
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83.4
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Net loss (income) attributable to noncontrolling interests
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0.3
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(2.0
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)
|
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Net income attributable to AGCO Corporation and subsidiaries
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$
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115.7
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$
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81.4
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Net income per common share attributable to AGCO Corporation and subsidiaries:
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Basic
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$
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1.46
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$
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1.02
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Diluted
|
$
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1.44
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$
|
1.02
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Cash dividends declared and paid per common share
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$
|
0.30
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$
|
0.28
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Weighted average number of common and common equivalent shares outstanding:
|
|
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|
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|
||
Basic
|
79.4
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79.5
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Diluted
|
80.3
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80.1
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Three Months Ended June 30,
|
||||||
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2018
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2017
|
||||
Net income
|
$
|
90.4
|
|
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$
|
91.6
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Other comprehensive (loss) income, net of reclassification adjustments:
|
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|
||||
Foreign currency translation adjustments
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(190.4
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)
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|
(0.7
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)
|
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Defined benefit pension plans, net of tax
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3.0
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2.9
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Unrealized gain on derivatives, net of tax
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1.5
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2.8
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Other comprehensive (loss) income, net of reclassification adjustments
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(185.9
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)
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5.0
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Comprehensive (loss) income
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(95.5
|
)
|
|
96.6
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Comprehensive loss attributable to noncontrolling interests
|
3.2
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|
0.9
|
|
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Comprehensive (loss) income attributable to AGCO Corporation and subsidiaries
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$
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(92.3
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)
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$
|
97.5
|
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|
Six Months Ended June 30,
|
||||||
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2018
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2017
|
||||
Net income
|
$
|
115.4
|
|
|
$
|
83.4
|
|
Other comprehensive (loss) income, net of reclassification adjustments:
|
|
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|
||||
Foreign currency translation adjustments
|
(180.7
|
)
|
|
42.0
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|
||
Defined benefit pension plans, net of tax
|
6.1
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|
|
5.8
|
|
||
Unrealized gain on derivatives, net of tax
|
0.6
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|
|
6.1
|
|
||
Other comprehensive (loss) income, net of reclassification adjustments
|
(174.0
|
)
|
|
53.9
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|
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Comprehensive (loss) income
|
(58.6
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)
|
|
137.3
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|
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Comprehensive loss (income) attributable to noncontrolling interests
|
2.4
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(2.6
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)
|
||
Comprehensive (loss) income attributable to AGCO Corporation and subsidiaries
|
$
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(56.2
|
)
|
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$
|
134.7
|
|
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Six Months Ended June 30,
|
||||||
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2018
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|
2017
|
||||
Cash flows from operating activities:
|
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Net income
|
$
|
115.4
|
|
|
$
|
83.4
|
|
Adjustments to reconcile net income to net cash used in operating activities:
|
|
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|
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Depreciation
|
115.1
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|
|
108.9
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Amortization of intangibles
|
33.9
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|
|
27.2
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|
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Stock compensation expense
|
22.5
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22.6
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Equity in net earnings of affiliates, net of cash received
|
(13.4
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)
|
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(5.6
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)
|
||
Deferred income tax (benefit) provision
|
(14.3
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)
|
|
0.6
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Other
|
1.3
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1.8
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|
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Changes in operating assets and liabilities:
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|
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Accounts and notes receivable, net
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(83.0
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)
|
|
(94.3
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)
|
||
Inventories, net
|
(396.3
|
)
|
|
(316.5
|
)
|
||
Other current and noncurrent assets
|
(47.3
|
)
|
|
(48.4
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)
|
||
Accounts payable
|
7.9
|
|
|
120.6
|
|
||
Accrued expenses
|
6.7
|
|
|
9.9
|
|
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Other current and noncurrent liabilities
|
47.2
|
|
|
23.4
|
|
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Total adjustments
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(319.7
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)
|
|
(149.8
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)
|
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Net cash used in operating activities
|
(204.3
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)
|
|
(66.4
|
)
|
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Cash flows from investing activities:
|
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|
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|
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Purchases of property, plant and equipment
|
(89.8
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)
|
|
(92.3
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)
|
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Proceeds from sale of property, plant and equipment
|
2.3
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|
|
1.6
|
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Investments in unconsolidated affiliates
|
(5.8
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)
|
|
(0.8
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)
|
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Other
|
0.4
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—
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Net cash used in investing activities
|
(92.9
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)
|
|
(91.5
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)
|
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Cash flows from financing activities:
|
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Proceeds from indebtedness
|
2,555.7
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|
1,966.6
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Repayments of indebtedness
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(2,273.6
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)
|
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(1,911.8
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)
|
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Purchases and retirement of common stock
|
(34.3
|
)
|
|
—
|
|
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Payment of dividends to stockholders
|
(23.8
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)
|
|
(22.2
|
)
|
||
Payment of minimum tax withholdings on stock compensation
|
(3.5
|
)
|
|
(4.0
|
)
|
||
Investments by noncontrolling interests
|
—
|
|
|
0.2
|
|
||
Net cash provided by financing activities
|
220.5
|
|
|
28.8
|
|
||
Effects of exchange rate changes on cash and cash equivalents
|
(10.4
|
)
|
|
17.2
|
|
||
Decrease in cash and cash equivalents
|
(87.1
|
)
|
|
(111.9
|
)
|
||
Cash and cash equivalents, beginning of period
|
367.7
|
|
|
429.7
|
|
||
Cash and cash equivalents, end of period
|
$
|
280.6
|
|
|
$
|
317.8
|
|
|
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As Reported
|
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Balances Without Adoption of ASU 2014-09
|
|
Increase (Decrease) Due to Adoption
|
||||||
Assets
|
|
|
|
|
|
|
||||||
Accounts and notes receivable, net
|
|
$
|
1,047.1
|
|
|
$
|
1,046.9
|
|
|
$
|
0.2
|
|
Other current assets
|
|
384.3
|
|
|
373.0
|
|
|
11.3
|
|
|||
Total current assets
|
|
3,843.9
|
|
|
3,832.4
|
|
|
11.5
|
|
|||
Total assets
|
|
8,024.1
|
|
|
8,012.6
|
|
|
11.5
|
|
|||
|
|
|
|
|
|
|
||||||
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
||||||
Accrued expenses
|
|
$
|
1,385.5
|
|
|
$
|
1,373.3
|
|
|
$
|
12.2
|
|
Total current liabilities
|
|
2,700.5
|
|
|
2,688.3
|
|
|
12.2
|
|
|||
Retained earnings
|
|
4,346.1
|
|
|
4,346.8
|
|
|
(0.7
|
)
|
|||
Total stockholder’s equity
|
|
2,998.1
|
|
|
2,998.8
|
|
|
(0.7
|
)
|
|||
Total liabilities and stockholder’s equity
|
|
8,024.1
|
|
|
8,012.6
|
|
|
11.5
|
|
|
Write-down of Property, Plant and Equipment
|
|
Employee Severance
|
|
Total
|
||||||
Balance as of December 31, 2017
|
$
|
—
|
|
|
$
|
10.9
|
|
|
$
|
10.9
|
|
First quarter 2018 provision
|
—
|
|
|
5.9
|
|
|
5.9
|
|
|||
First quarter 2018 cash activity
|
—
|
|
|
(3.7
|
)
|
|
(3.7
|
)
|
|||
Foreign currency translation
|
—
|
|
|
0.1
|
|
|
0.1
|
|
|||
Balance as of March 31, 2018
|
—
|
|
|
13.2
|
|
|
13.2
|
|
|||
Second quarter 2018 provision
|
0.3
|
|
|
2.4
|
|
|
2.7
|
|
|||
Less: Non-cash activity
|
(0.3
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)
|
|
—
|
|
|
(0.3
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)
|
|||
Cash expense
|
—
|
|
|
2.4
|
|
|
2.4
|
|
|||
Second quarter 2018 cash activity
|
—
|
|
|
(4.7
|
)
|
|
(4.7
|
)
|
|||
Foreign currency translation
|
—
|
|
|
(0.8
|
)
|
|
(0.8
|
)
|
|||
Balance as of June 30, 2018
|
$
|
—
|
|
|
$
|
10.1
|
|
|
$
|
10.1
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Cost of goods sold
|
|
$
|
1.1
|
|
|
$
|
1.0
|
|
|
$
|
1.9
|
|
|
$
|
1.6
|
|
Selling, general and administrative expenses
|
|
12.5
|
|
|
9.8
|
|
|
20.9
|
|
|
21.2
|
|
||||
Total stock compensation expense
|
|
$
|
13.6
|
|
|
$
|
10.8
|
|
|
$
|
22.8
|
|
|
$
|
22.8
|
|
Shares awarded but not vested at January 1
|
237,468
|
|
Shares awarded
|
110,404
|
|
Shares forfeited
|
(5,178
|
)
|
Shares vested
|
(117,172
|
)
|
Shares awarded but not vested at June 30
|
225,522
|
|
SSARs outstanding at January 1
|
1,060,192
|
|
SSARs granted
|
157,700
|
|
SSARs exercised
|
(80,475
|
)
|
SSARs canceled or forfeited
|
(7,400
|
)
|
SSARs outstanding at June 30
|
1,130,017
|
|
|
Trademarks and
Tradenames
|
|
Customer
Relationships
|
|
Patents and
Technology
|
|
Land Use Rights
|
|
Total
|
||||||||||
Gross carrying amounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance as of December 31, 2017
|
$
|
208.4
|
|
|
$
|
600.4
|
|
|
$
|
160.0
|
|
|
$
|
9.1
|
|
|
$
|
977.9
|
|
Foreign currency translation
|
(3.1
|
)
|
|
(10.1
|
)
|
|
(2.7
|
)
|
|
(0.2
|
)
|
|
(16.1
|
)
|
|||||
Balance as of June 30, 2018
|
$
|
205.3
|
|
|
$
|
590.3
|
|
|
$
|
157.3
|
|
|
$
|
8.9
|
|
|
$
|
961.8
|
|
|
Trademarks and
Tradenames
|
|
Customer
Relationships
|
|
Patents and
Technology
|
|
Land Use Rights
|
|
Total
|
||||||||||
Accumulated amortization:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance as of December 31, 2017
|
$
|
61.4
|
|
|
$
|
279.7
|
|
|
$
|
73.4
|
|
|
$
|
3.0
|
|
|
$
|
417.5
|
|
Amortization expense and impairment charge
|
8.1
|
|
|
20.5
|
|
|
5.2
|
|
|
0.1
|
|
|
33.9
|
|
|||||
Foreign currency translation
|
(1.0
|
)
|
|
(7.2
|
)
|
|
(1.9
|
)
|
|
—
|
|
|
(10.1
|
)
|
|||||
Balance as of June 30, 2018
|
$
|
68.5
|
|
|
$
|
293.0
|
|
|
$
|
76.7
|
|
|
$
|
3.1
|
|
|
$
|
441.3
|
|
|
Trademarks and
Tradenames
|
||
Indefinite-lived intangible assets:
|
|
|
|
Balance as of December 31, 2017
|
$
|
88.6
|
|
Foreign currency translation
|
(1.0
|
)
|
|
Balance as of June 30, 2018
|
$
|
87.6
|
|
|
North
America
|
|
South
America
|
|
Europe/Middle East
|
|
Asia/
Pacific/Africa
|
|
Consolidated
|
||||||||||
Balance as of December 31, 2017
|
$
|
611.1
|
|
|
$
|
136.4
|
|
|
$
|
671.0
|
|
|
$
|
122.9
|
|
|
$
|
1,541.4
|
|
Adjustment
|
—
|
|
|
—
|
|
|
1.9
|
|
|
—
|
|
|
1.9
|
|
|||||
Foreign currency translation
|
—
|
|
|
(19.3
|
)
|
|
(18.2
|
)
|
|
(2.1
|
)
|
|
(39.6
|
)
|
|||||
Balance as of June 30, 2018
|
$
|
611.1
|
|
|
$
|
117.1
|
|
|
$
|
654.7
|
|
|
$
|
120.8
|
|
|
$
|
1,503.7
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
1.056% Senior term loan due 2020
|
$
|
232.9
|
|
|
$
|
239.8
|
|
Credit facility, expiring 2020
|
799.9
|
|
|
471.2
|
|
||
Senior term loans due 2021
|
116.4
|
|
|
119.9
|
|
||
5
7
/
8
% Senior notes due 2021
|
115.9
|
|
|
305.3
|
|
||
Senior term loans due between 2019 and 2026
|
436.6
|
|
|
449.7
|
|
||
Other long-term debt
|
46.8
|
|
|
61.0
|
|
||
Debt issuance costs
|
(2.6
|
)
|
|
(4.0
|
)
|
||
|
1,745.9
|
|
|
1,642.9
|
|
||
Less: Current portion of other long-term debt
|
(17.9
|
)
|
|
(24.8
|
)
|
||
Total long-term debt, less current portion
|
$
|
1,728.0
|
|
|
$
|
1,618.1
|
|
Maturity Date
|
|
Floating or Fixed Interest Rate
|
|
Interest Rate
|
|
Interest Payment
|
|
Term Loan Amount
|
||
October 19, 2019
|
|
Floating
|
|
EURIBOR + 0.75%
|
|
Semi-Annually
|
|
€
|
1.0
|
|
October 19, 2019
|
|
Fixed
|
|
0.75%
|
|
Annually
|
|
55.0
|
|
|
October 19, 2021
|
|
Floating
|
|
EURIBOR + 1.00%
|
|
Semi-Annually
|
|
25.5
|
|
|
October 19, 2021
|
|
Fixed
|
|
1.00%
|
|
Annually
|
|
166.5
|
|
|
October 19, 2023
|
|
Floating
|
|
EURIBOR + 1.25%
|
|
Semi-Annually
|
|
1.0
|
|
|
October 19, 2023
|
|
Fixed
|
|
1.33%
|
|
Annually
|
|
73.5
|
|
|
October 19, 2026
|
|
Fixed
|
|
1.98%
|
|
Annually
|
|
52.5
|
|
|
|
|
|
|
|
|
|
|
€
|
375.0
|
|
Maturity Date
|
|
Floating or Fixed Interest Rate
|
|
Interest Rate
|
|
Interest Payment
|
|
Term Loan Amount
|
||
August 1, 2021
|
|
Floating
|
|
EURIBOR + 0.70%
|
|
Semi-Annually
|
|
€
|
32.0
|
|
August 1, 2021
|
|
Fixed
|
|
0.70%
|
|
Annually
|
|
40.0
|
|
|
August 1, 2023
|
|
Floating
|
|
EURIBOR + 0.90%
|
|
Semi-Annually
|
|
72.5
|
|
|
August 1, 2023
|
|
Fixed
|
|
1.20%
|
|
Annually
|
|
99.5
|
|
|
August 1, 2025
|
|
Floating
|
|
EURIBOR + 1.10%
|
|
Semi-Annually
|
|
30.5
|
|
|
August 1, 2025
|
|
Fixed
|
|
1.67%
|
|
Annually
|
|
32.5
|
|
|
August 1, 2028
|
|
Fixed
|
|
2.26%
|
|
Annually
|
|
31.0
|
|
|
|
|
|
|
|
|
|
|
€
|
338.0
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
Finished goods
|
$
|
781.2
|
|
|
$
|
684.1
|
|
Repair and replacement parts
|
611.4
|
|
|
605.9
|
|
||
Work in process
|
264.1
|
|
|
178.7
|
|
||
Raw materials
|
475.2
|
|
|
404.2
|
|
||
Inventories, net
|
$
|
2,131.9
|
|
|
$
|
1,872.9
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Balance at beginning of period
|
$
|
325.8
|
|
|
$
|
270.1
|
|
|
$
|
316.0
|
|
|
$
|
255.6
|
|
Accruals for warranties issued during the period
|
50.2
|
|
|
53.4
|
|
|
108.7
|
|
|
104.9
|
|
||||
Settlements made (in cash or in kind) during the period
|
(34.1
|
)
|
|
(38.2
|
)
|
|
(90.0
|
)
|
|
(78.1
|
)
|
||||
Foreign currency translation
|
(17.1
|
)
|
|
11.6
|
|
|
(9.9
|
)
|
|
14.5
|
|
||||
Balance at June 30
|
$
|
324.8
|
|
|
$
|
296.9
|
|
|
$
|
324.8
|
|
|
$
|
296.9
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Basic net income per share:
|
|
|
|
|
|
|
|
|
|
||||||
Net income attributable to AGCO Corporation and subsidiaries
|
$
|
91.4
|
|
|
$
|
91.5
|
|
|
$
|
115.7
|
|
|
$
|
81.4
|
|
Weighted average number of common shares outstanding
|
79.3
|
|
|
79.5
|
|
|
79.4
|
|
|
79.5
|
|
||||
Basic net income per share attributable to AGCO Corporation and subsidiaries
|
$
|
1.15
|
|
|
$
|
1.15
|
|
|
$
|
1.46
|
|
|
$
|
1.02
|
|
Diluted net income per share:
|
|
|
|
|
|
|
|
|
|
||||||
Net income attributable to AGCO Corporation and subsidiaries
|
$
|
91.4
|
|
|
$
|
91.5
|
|
|
$
|
115.7
|
|
|
$
|
81.4
|
|
Weighted average number of common shares outstanding
|
79.3
|
|
|
79.5
|
|
|
79.4
|
|
|
79.5
|
|
||||
Dilutive SSARs, performance share awards and RSUs
|
0.9
|
|
|
0.6
|
|
|
0.9
|
|
|
0.6
|
|
||||
Weighted average number of common shares and common share equivalents outstanding for purposes of computing diluted net income per share
|
80.2
|
|
|
80.1
|
|
|
80.3
|
|
|
80.1
|
|
||||
Diluted net income per share attributable to AGCO Corporation and subsidiaries
|
$
|
1.14
|
|
|
$
|
1.14
|
|
|
$
|
1.44
|
|
|
$
|
1.02
|
|
|
|
|
Recognized in Net Income
|
|
|
||||||||
Three Months Ended June 30,
|
Gain (Loss) Recognized in Accumulated
Other Comprehensive Loss |
|
Classification of Gain (Loss)
|
|
Gain (Loss) Reclassified from Accumulated
Other Comprehensive Loss into Income
|
|
Total Amount of the Line Item in the Condensed Consolidated Statements of Operations Containing Hedge Gains (Losses)
|
||||||
2018
|
|
|
|
|
|
|
|
||||||
Foreign currency contracts
|
$
|
0.2
|
|
|
Cost of goods sold
|
|
$
|
(0.8
|
)
|
|
$
|
1,981.3
|
|
Interest rate swap contract
|
(0.2
|
)
|
|
Interest expense, net
|
|
(0.7
|
)
|
|
21.2
|
|
|||
Total
|
$
|
—
|
|
|
|
|
$
|
(1.5
|
)
|
|
|
||
2017
|
|
|
|
|
|
|
|
||||||
Foreign currency contracts
|
$
|
1.8
|
|
|
Cost of goods sold
|
|
$
|
(0.7
|
)
|
|
$
|
1,689.8
|
|
Interest rate swap contract
|
(0.2
|
)
|
|
Interest expense, net
|
|
(0.5
|
)
|
|
11.3
|
|
|||
Total
|
$
|
1.6
|
|
|
|
|
$
|
(1.2
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
Recognized in Net Income
|
|
|
||||||||
Six Months Ended June 30,
|
Gain (Loss) Recognized in Accumulated
Other Comprehensive Loss |
|
Classification
of Gain (Loss)
|
|
Gain (Loss) Reclassified from Accumulated
Other Comprehensive Loss into Income
|
|
Total Amount of the Line Item in the Condensed Consolidated Statements of Operations Containing Hedge Gains (Losses)
|
||||||
2018
|
|
|
|
|
|
|
|
||||||
Foreign currency contracts
(1)
|
$
|
(1.2
|
)
|
|
Cost of goods sold
|
|
$
|
(1.4
|
)
|
|
$
|
3,560.8
|
|
Interest rate swap contract
|
(0.9
|
)
|
|
Interest expense, net
|
|
(1.3
|
)
|
|
31.5
|
|
|||
Total
|
$
|
(2.1
|
)
|
|
|
|
$
|
(2.7
|
)
|
|
|
||
2017
|
|
|
|
|
|
|
|
||||||
Foreign currency contracts
|
$
|
3.2
|
|
|
Cost of goods sold
|
|
$
|
(1.4
|
)
|
|
$
|
2,987.1
|
|
Interest rate swap contract
|
0.4
|
|
|
Interest expense, net
|
|
(1.1
|
)
|
|
22.0
|
|
|||
Total
|
$
|
3.6
|
|
|
|
|
$
|
(2.5
|
)
|
|
|
|
|
Before-Tax Amount
|
|
Income Tax
|
|
After-Tax Amount
|
||||||
Accumulated derivative net losses as of December 31, 2017
|
|
$
|
(6.0
|
)
|
|
$
|
(1.3
|
)
|
|
$
|
(4.7
|
)
|
Net changes in fair value of derivatives
|
|
(2.4
|
)
|
|
(0.3
|
)
|
|
(2.1
|
)
|
|||
Net losses reclassified from accumulated other comprehensive loss into income
|
|
2.8
|
|
|
0.1
|
|
|
2.7
|
|
|||
Accumulated derivative net losses as of June 30, 2018
|
|
$
|
(5.6
|
)
|
|
$
|
(1.5
|
)
|
|
$
|
(4.1
|
)
|
|
Notional Amount as of
|
||||||
|
June 30, 2018
|
|
December 31, 2017
|
||||
Foreign currency denominated debt
|
$
|
363.3
|
|
|
$
|
374.2
|
|
Cross currency swap contract
|
300.0
|
|
|
—
|
|
|
Gain (Loss) Recognized in Accumulated
Other Comprehensive Loss for the Three Months Ended
|
|
Gain (Loss) Recognized in Accumulated
Other Comprehensive Loss for the Six Months Ended
|
||||||||||||
|
June 30, 2018
|
|
June 30, 2017
|
|
June 30, 2018
|
|
June 30, 2017
|
||||||||
Foreign currency denominated debt
|
$
|
21.2
|
|
|
$
|
(22.9
|
)
|
|
$
|
10.9
|
|
|
$
|
(27.1
|
)
|
Cross currency swap contract
|
16.2
|
|
|
—
|
|
|
11.6
|
|
|
—
|
|
|
|
|
For the Three Months Ended
|
|
For the Six Months Ended
|
||||||||||||
|
Classification of Gain
|
|
June 30, 2018
|
|
June 30, 2017
|
|
June 30, 2018
|
|
June 30, 2017
|
||||||||
Foreign currency contracts
|
Other expense, net
|
|
$
|
(3.8
|
)
|
|
$
|
18.1
|
|
|
$
|
2.4
|
|
|
$
|
21.9
|
|
|
Asset Derivatives as of
June 30, 2018 |
|
Liability Derivatives as of
June 30, 2018 |
||||||||
|
Balance Sheet
Location
|
|
Fair
Value
|
|
Balance Sheet
Location
|
|
Fair
Value
|
||||
Derivative instruments designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
||
Foreign currency contracts
|
Other current assets
|
|
$
|
1.3
|
|
|
Other current liabilities
|
|
$
|
2.5
|
|
Interest rate swap contract
|
Other noncurrent assets
|
|
—
|
|
|
Other noncurrent liabilities
|
|
4.4
|
|
||
Cross currency swap contract
|
Other noncurrent assets
|
|
11.6
|
|
|
Other noncurrent liabilities
|
|
—
|
|
||
Derivative instruments not designated as hedging instruments:
|
|
|
|
|
|
|
|
||||
Foreign currency contracts
|
Other current assets
|
|
8.6
|
|
|
Other current liabilities
|
|
8.1
|
|
||
Total derivative instruments
|
|
|
$
|
21.5
|
|
|
|
|
$
|
15.0
|
|
|
Asset Derivatives as of
December 31, 2017
|
|
Liability Derivatives as of
December 31, 2017
|
||||||||
|
Balance Sheet
Location
|
|
Fair
Value
|
|
Balance Sheet
Location
|
|
Fair
Value
|
||||
Derivative instruments designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
||
Foreign currency contracts
|
Other current assets
|
|
$
|
—
|
|
|
Other current liabilities
|
|
$
|
1.2
|
|
Interest rate swap contract
|
Other noncurrent assets
|
|
—
|
|
|
Other noncurrent liabilities
|
|
4.8
|
|
||
Derivative instruments not designated as hedging instruments:
|
|
|
|
|
|
|
|
||||
Foreign currency contracts
|
Other current assets
|
|
7.8
|
|
|
Other current liabilities
|
|
11.0
|
|
||
Total derivative instruments
|
|
|
$
|
7.8
|
|
|
|
|
$
|
17.0
|
|
|
Common
Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Noncontrolling
Interests
|
|
Total Stockholders’
Equity
|
||||||||||||
Balance, December 31, 2017
|
$
|
0.8
|
|
|
$
|
136.6
|
|
|
$
|
4,253.8
|
|
|
$
|
(1,361.6
|
)
|
|
$
|
65.7
|
|
|
$
|
3,095.3
|
|
Stock compensation
|
—
|
|
|
22.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22.5
|
|
||||||
Issuance of stock awards
|
—
|
|
|
(3.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.0
|
)
|
||||||
SSARs exercised
|
—
|
|
|
(0.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
||||||
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss)
|
—
|
|
|
—
|
|
|
115.7
|
|
|
—
|
|
|
(0.3
|
)
|
|
115.4
|
|
||||||
Other comprehensive loss, net of reclassification adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency translation adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
(178.6
|
)
|
|
(2.1
|
)
|
|
(180.7
|
)
|
||||||
Defined benefit pension plans, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
6.1
|
|
|
—
|
|
|
6.1
|
|
||||||
Unrealized loss on derivatives, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
0.6
|
|
|
—
|
|
|
0.6
|
|
||||||
Payment of dividends to stockholders
|
—
|
|
|
—
|
|
|
(23.8
|
)
|
|
—
|
|
|
—
|
|
|
(23.8
|
)
|
||||||
Purchases and retirement of common stock
|
—
|
|
|
(34.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(34.3
|
)
|
||||||
Adjustment related to the adoption of ASU 2014-09
|
—
|
|
|
—
|
|
|
0.4
|
|
|
—
|
|
|
—
|
|
|
0.4
|
|
||||||
Balance, June 30, 2018
|
$
|
0.8
|
|
|
$
|
121.4
|
|
|
$
|
4,346.1
|
|
|
$
|
(1,533.5
|
)
|
|
$
|
63.3
|
|
|
$
|
2,998.1
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net (loss) income
|
$
|
(1.0
|
)
|
|
$
|
0.1
|
|
|
$
|
(0.3
|
)
|
|
$
|
2.0
|
|
Other comprehensive (loss) income:
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments
|
(2.2
|
)
|
|
(1.0
|
)
|
|
(2.1
|
)
|
|
0.6
|
|
||||
Total comprehensive (loss) income
|
$
|
(3.2
|
)
|
|
$
|
(0.9
|
)
|
|
$
|
(2.4
|
)
|
|
$
|
2.6
|
|
|
Defined Benefit Pension Plans
|
|
Deferred Net (Losses) Gains on Derivatives
|
|
Cumulative Translation Adjustment
|
|
Total
|
||||||||
Accumulated other comprehensive loss, December 31, 2017
|
$
|
(285.1
|
)
|
|
$
|
(4.7
|
)
|
|
$
|
(1,071.8
|
)
|
|
$
|
(1,361.6
|
)
|
Other comprehensive loss before reclassifications
|
—
|
|
|
(2.1
|
)
|
|
(178.6
|
)
|
|
(180.7
|
)
|
||||
Net losses reclassified from accumulated other comprehensive loss
|
6.1
|
|
|
2.7
|
|
|
—
|
|
|
8.8
|
|
||||
Other comprehensive income (loss), net of reclassification adjustments
|
6.1
|
|
|
0.6
|
|
|
(178.6
|
)
|
|
(171.9
|
)
|
||||
Accumulated other comprehensive loss, June 30, 2018
|
$
|
(279.0
|
)
|
|
$
|
(4.1
|
)
|
|
$
|
(1,250.4
|
)
|
|
$
|
(1,533.5
|
)
|
|
|
Amount Reclassified from Accumulated Other Comprehensive Loss
|
Affected Line Item within the Condensed Consolidated
Statements of Operations
|
||||||
Details about Accumulated Other Comprehensive Loss Components
|
|
Three Months Ended June 30, 2018
(1)
|
|
Three Months Ended June 30, 2017
(1)
|
|||||
Derivatives:
|
|
|
|
|
|
||||
Net losses on foreign currency contracts
|
|
$
|
0.9
|
|
|
$
|
0.8
|
|
Cost of goods sold
|
Net losses on interest rate swap contract
|
|
0.7
|
|
|
0.5
|
|
Interest expense, net
|
||
Reclassification before tax
|
|
1.6
|
|
|
1.3
|
|
|
||
|
|
(0.1
|
)
|
|
(0.1
|
)
|
Income tax provision
|
||
Reclassification net of tax
|
|
$
|
1.5
|
|
|
$
|
1.2
|
|
|
|
|
|
|
|
|
||||
Defined benefit pension plans:
|
|
|
|
|
|
||||
Amortization of net actuarial losses
|
|
$
|
3.2
|
|
|
$
|
3.1
|
|
(2)
|
Amortization of prior service cost
|
|
0.3
|
|
|
0.3
|
|
(2)
|
||
Reclassification before tax
|
|
3.5
|
|
|
3.4
|
|
|
||
|
|
(0.5
|
)
|
|
(0.5
|
)
|
Income tax provision
|
||
Reclassification net of tax
|
|
$
|
3.0
|
|
|
$
|
2.9
|
|
|
|
|
|
|
|
|
||||
Net losses reclassified from accumulated other comprehensive loss
|
|
$
|
4.5
|
|
|
$
|
4.1
|
|
|
|
|
|
|
|
|
||||
|
|
Amount Reclassified from Accumulated Other Comprehensive Loss
|
Affected Line Item within the Condensed Consolidated
Statements of Operations
|
||||||
Details about Accumulated Other Comprehensive Loss Components
|
|
Six months ended June 30, 2018
(1)
|
|
Six months ended June 30, 2017
(1)
|
|||||
Derivatives:
|
|
|
|
|
|
||||
Net losses on foreign currency contracts
|
|
$
|
1.5
|
|
|
$
|
1.5
|
|
Cost of goods sold
|
Net losses on interest rate swap contract
|
|
1.3
|
|
|
1.1
|
|
Interest expense, net
|
||
Reclassification before tax
|
|
2.8
|
|
|
2.6
|
|
|
||
|
|
(0.1
|
)
|
|
(0.1
|
)
|
Income tax provision
|
||
Reclassification net of tax
|
|
$
|
2.7
|
|
|
$
|
2.5
|
|
|
|
|
|
|
|
|
||||
Defined benefit pension plans:
|
|
|
|
|
|
||||
Amortization of net actuarial losses
|
|
$
|
6.3
|
|
|
$
|
6.1
|
|
(2)
|
Amortization of prior service cost
|
|
0.7
|
|
|
0.7
|
|
(2)
|
||
Reclassification before tax
|
|
7.0
|
|
|
6.8
|
|
|
||
|
|
(0.9
|
)
|
|
(1.0
|
)
|
Income tax provision
|
||
Reclassification net of tax
|
|
$
|
6.1
|
|
|
$
|
5.8
|
|
|
|
|
|
|
|
|
||||
Net losses reclassified from accumulated other comprehensive loss
|
|
$
|
8.8
|
|
|
$
|
8.3
|
|
|
|
|
Three Months Ended June 30,
|
||||||
Pension benefits
|
|
2018
|
|
2017
|
||||
Service cost
|
|
$
|
4.8
|
|
|
$
|
4.4
|
|
Interest cost
|
|
5.1
|
|
|
5.2
|
|
||
Expected return on plan assets
|
|
(9.3
|
)
|
|
(9.1
|
)
|
||
Amortization of net actuarial losses
|
|
3.1
|
|
|
3.1
|
|
||
Amortization of prior service cost
|
|
0.3
|
|
|
0.3
|
|
||
Net periodic pension cost
|
|
$
|
4.0
|
|
|
$
|
3.9
|
|
|
|
Three Months Ended June 30,
|
||||||
Postretirement benefits
|
|
2018
|
|
2017
|
||||
Service cost
|
|
$
|
0.1
|
|
|
$
|
0.1
|
|
Interest cost
|
|
0.3
|
|
|
0.4
|
|
||
Amortization of net actuarial losses
|
|
0.1
|
|
|
—
|
|
||
Net periodic postretirement benefit cost
|
|
$
|
0.5
|
|
|
$
|
0.5
|
|
|
|
Six Months Ended June 30,
|
||||||
Pension benefits
|
|
2018
|
|
2017
|
||||
Service cost
|
|
$
|
9.7
|
|
|
$
|
8.6
|
|
Interest cost
|
|
10.2
|
|
|
10.2
|
|
||
Expected return on plan assets
|
|
(18.7
|
)
|
|
(17.8
|
)
|
||
Amortization of net actuarial losses
|
|
6.2
|
|
|
6.1
|
|
||
Amortization of prior service cost
|
|
0.6
|
|
|
0.6
|
|
||
Net periodic pension cost
|
|
$
|
8.0
|
|
|
$
|
7.7
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
||||||
Postretirement benefits
|
|
2018
|
|
2017
|
||||
Service cost
|
|
$
|
0.1
|
|
|
$
|
0.1
|
|
Interest cost
|
|
0.7
|
|
|
0.8
|
|
||
Amortization of net actuarial losses
|
|
0.1
|
|
|
—
|
|
||
Amortization of prior service cost
|
|
0.1
|
|
|
0.1
|
|
||
Net periodic postretirement benefit cost
|
|
$
|
1.0
|
|
|
$
|
1.0
|
|
|
|
|
|
|
|
|
Before-Tax Amount
|
|
Income Tax
|
|
After-Tax Amount
|
||||||
Accumulated other comprehensive loss as of December 31, 2017
|
|
$
|
(380.6
|
)
|
|
$
|
(95.5
|
)
|
|
$
|
(285.1
|
)
|
Amortization of net actuarial losses
|
|
6.3
|
|
|
0.9
|
|
|
5.4
|
|
|||
Amortization of prior service cost
|
|
0.7
|
|
|
—
|
|
|
0.7
|
|
|||
Accumulated other comprehensive loss as of June 30, 2018
|
|
$
|
(373.6
|
)
|
|
$
|
(94.6
|
)
|
|
$
|
(279.0
|
)
|
|
As of June 30, 2018
|
|||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||
Derivative assets
|
$
|
—
|
|
$
|
21.5
|
|
$
|
—
|
|
$
|
21.5
|
|
Derivative liabilities
|
$
|
—
|
|
$
|
15.0
|
|
$
|
—
|
|
$
|
15.0
|
|
|
As of December 31, 2017
|
|||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||
Derivative assets
|
$
|
—
|
|
$
|
7.8
|
|
$
|
—
|
|
$
|
7.8
|
|
Derivative liabilities
|
$
|
—
|
|
$
|
17.0
|
|
$
|
—
|
|
$
|
17.0
|
|
Three Months Ended June 30,
|
|
North
America |
|
South
America |
|
Europe/
Middle East |
|
Asia/
Pacific/Africa |
|
Consolidated
|
||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net sales
|
|
$
|
600.5
|
|
|
$
|
219.6
|
|
|
$
|
1,545.2
|
|
|
$
|
172.3
|
|
|
$
|
2,537.6
|
|
Income (loss) from operations
|
|
37.6
|
|
|
(16.7
|
)
|
|
208.5
|
|
|
4.6
|
|
|
234.0
|
|
|||||
Depreciation
|
|
16.8
|
|
|
7.3
|
|
|
28.4
|
|
|
3.4
|
|
|
55.9
|
|
|||||
Capital expenditures
|
|
10.1
|
|
|
7.3
|
|
|
24.3
|
|
|
2.0
|
|
|
43.7
|
|
|||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net sales
|
|
$
|
478.8
|
|
|
$
|
251.9
|
|
|
$
|
1,269.5
|
|
|
$
|
165.0
|
|
|
$
|
2,165.2
|
|
Income from operations
|
|
23.6
|
|
|
2.8
|
|
|
170.3
|
|
|
5.7
|
|
|
202.4
|
|
|||||
Depreciation
|
|
15.7
|
|
|
7.9
|
|
|
28.0
|
|
|
3.0
|
|
|
54.6
|
|
|||||
Capital expenditures
|
|
9.1
|
|
|
8.4
|
|
|
15.5
|
|
|
2.2
|
|
|
35.2
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Six Months Ended June 30,
|
|
North
America
|
|
South
America
|
|
Europe/
Middle East
|
|
Asia/
Pacific/Africa
|
|
Consolidated
|
||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net sales
|
|
$
|
1,103.4
|
|
|
$
|
401.7
|
|
|
$
|
2,708.9
|
|
|
$
|
331.1
|
|
|
$
|
4,545.1
|
|
Income (loss) from operations
|
|
64.4
|
|
|
(33.3
|
)
|
|
307.5
|
|
|
9.3
|
|
|
347.9
|
|
|||||
Depreciation
|
|
34.0
|
|
|
15.3
|
|
|
58.4
|
|
|
7.4
|
|
|
115.1
|
|
|||||
Capital expenditures
|
|
22.2
|
|
|
14.2
|
|
|
49.4
|
|
|
4.0
|
|
|
89.8
|
|
|||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net sales
|
|
$
|
861.4
|
|
|
$
|
474.1
|
|
|
$
|
2,162.0
|
|
|
$
|
295.3
|
|
|
$
|
3,792.8
|
|
Income from operations
|
|
26.6
|
|
|
5.2
|
|
|
233.8
|
|
|
7.8
|
|
|
273.4
|
|
|||||
Depreciation
|
|
29.9
|
|
|
14.7
|
|
|
56.7
|
|
|
7.6
|
|
|
108.9
|
|
|||||
Capital expenditures
|
|
31.1
|
|
|
20.1
|
|
|
36.5
|
|
|
4.6
|
|
|
92.3
|
|
|||||
Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
As of June 30, 2018
|
|
$
|
1,145.2
|
|
|
$
|
706.0
|
|
|
$
|
2,218.6
|
|
|
$
|
517.7
|
|
|
$
|
4,587.5
|
|
As of December 31, 2017
|
|
$
|
1,064.1
|
|
|
$
|
752.1
|
|
|
$
|
2,074.4
|
|
|
$
|
499.4
|
|
|
$
|
4,390.0
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Segment income from operations
|
$
|
234.0
|
|
|
$
|
202.4
|
|
|
$
|
347.9
|
|
|
$
|
273.4
|
|
Corporate expenses
|
(32.5
|
)
|
|
(30.1
|
)
|
|
(65.9
|
)
|
|
(55.5
|
)
|
||||
Stock compensation expense
|
(12.5
|
)
|
|
(9.8
|
)
|
|
(20.9
|
)
|
|
(21.2
|
)
|
||||
Restructuring expenses
|
(2.7
|
)
|
|
(0.4
|
)
|
|
(8.6
|
)
|
|
(5.5
|
)
|
||||
Amortization of intangibles
|
(18.2
|
)
|
|
(13.8
|
)
|
|
(33.9
|
)
|
|
(27.2
|
)
|
||||
Consolidated income from operations
|
$
|
168.1
|
|
|
$
|
148.3
|
|
|
$
|
218.6
|
|
|
$
|
164.0
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
Segment assets
|
$
|
4,587.5
|
|
|
$
|
4,390.0
|
|
Cash and cash equivalents
|
280.6
|
|
|
367.7
|
|
||
Investments in affiliates
|
411.2
|
|
|
409.0
|
|
||
Deferred tax assets, other current and noncurrent assets
|
633.0
|
|
|
614.6
|
|
||
Intangible assets, net
|
608.1
|
|
|
649.0
|
|
||
Goodwill
|
1,503.7
|
|
|
1,541.4
|
|
||
Consolidated total assets
|
$
|
8,024.1
|
|
|
$
|
7,971.7
|
|
Contract Assets
|
|
||||||
|
Three Months Ended June 30, 2018
|
|
Six Months Ended June 30, 2018
(1)
|
||||
Balance at beginning of period
|
$
|
10.4
|
|
|
$
|
10.1
|
|
Additions for expected returns of replacement parts sold during the period
|
5.5
|
|
|
10.4
|
|
||
Transfer of returned replacement parts to inventory
|
(4.5
|
)
|
|
(9.1
|
)
|
||
Foreign currency translation
|
(0.1
|
)
|
|
(0.1
|
)
|
||
Balance as of June 30, 2018
|
$
|
11.3
|
|
|
$
|
11.3
|
|
|
|
|
|
||||
Contract Liabilities
|
|
||||||
|
Three Months Ended June 30, 2018
|
|
Six Months Ended June 30, 2018
(1)
|
||||
Balance at beginning of period
|
$
|
119.1
|
|
|
$
|
104.4
|
|
Advance consideration received
|
23.4
|
|
|
57.9
|
|
||
Accrual for expected reimbursement of replacement parts sold during the period
|
12.9
|
|
|
24.5
|
|
||
Revenue recognized during the period for extended warranty contracts
|
(6.3
|
)
|
|
(12.7
|
)
|
||
Revenue recognized during the period related to installation of grain storage and protein production systems
|
(33.1
|
)
|
|
(48.6
|
)
|
||
Replacement part settlements made during the period
|
(10.8
|
)
|
|
(22.1
|
)
|
||
Foreign currency translation
|
(3.3
|
)
|
|
(1.5
|
)
|
||
Balance as of June 30, 2018
|
$
|
101.9
|
|
|
$
|
101.9
|
|
|
|
North America
|
|
South America
|
|
Europe/Middle East
(1)
|
|
Asia/Pacific/Africa
(1)
|
|
Consolidated
|
||||||||||
Primary geographical markets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
United States
|
|
$
|
468.4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
468.4
|
|
Canada
|
|
101.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
101.3
|
|
|||||
South America
|
|
—
|
|
|
213.7
|
|
|
—
|
|
|
—
|
|
|
213.7
|
|
|||||
Germany
|
|
—
|
|
|
—
|
|
|
389.7
|
|
|
—
|
|
|
389.7
|
|
|||||
France
|
|
—
|
|
|
—
|
|
|
250.2
|
|
|
—
|
|
|
250.2
|
|
|||||
United Kingdom and Ireland
|
|
—
|
|
|
—
|
|
|
172.8
|
|
|
—
|
|
|
172.8
|
|
|||||
Finland and Scandinavia
|
|
—
|
|
|
—
|
|
|
231.7
|
|
|
—
|
|
|
231.7
|
|
|||||
Other Europe
|
|
—
|
|
|
—
|
|
|
495.1
|
|
|
—
|
|
|
495.1
|
|
|||||
Middle East and Algeria
|
|
—
|
|
|
—
|
|
|
5.7
|
|
|
—
|
|
|
5.7
|
|
|||||
Africa
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22.0
|
|
|
22.0
|
|
|||||
Asia
|
|
—
|
|
|
—
|
|
|
—
|
|
|
87.0
|
|
|
87.0
|
|
|||||
Australia and New Zealand
|
|
—
|
|
|
—
|
|
|
—
|
|
|
63.3
|
|
|
63.3
|
|
|||||
Mexico, Central America and Caribbean
|
|
30.8
|
|
|
5.9
|
|
|
—
|
|
|
—
|
|
|
36.7
|
|
|||||
|
|
$
|
600.5
|
|
|
$
|
219.6
|
|
|
$
|
1,545.2
|
|
|
$
|
172.3
|
|
|
$
|
2,537.6
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Major products:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tractors
|
|
$
|
173.7
|
|
|
$
|
148.2
|
|
|
$
|
1,049.5
|
|
|
$
|
75.9
|
|
|
$
|
1,447.3
|
|
Replacement parts
|
|
97.7
|
|
|
21.9
|
|
|
252.7
|
|
|
15.9
|
|
|
388.2
|
|
|||||
Other machinery
|
|
79.5
|
|
|
15.6
|
|
|
138.0
|
|
|
16.5
|
|
|
249.6
|
|
|||||
Grain storage and protein production systems
|
|
171.5
|
|
|
12.2
|
|
|
58.4
|
|
|
59.9
|
|
|
302.0
|
|
|||||
Combines
|
|
24.6
|
|
|
14.4
|
|
|
39.6
|
|
|
2.2
|
|
|
80.8
|
|
|||||
Application equipment
|
|
53.5
|
|
|
7.3
|
|
|
6.9
|
|
|
2.0
|
|
|
69.7
|
|
|||||
|
|
$
|
600.5
|
|
|
$
|
219.6
|
|
|
$
|
1,545.2
|
|
|
$
|
172.3
|
|
|
$
|
2,537.6
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Rounding may impact summation of amounts.
|
|
|
North America
|
|
South America
|
|
Europe/Middle East
(1)
|
|
Asia/Pacific/Africa
(1)
|
|
Consolidated
|
||||||||||
Primary geographical markets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
United States
|
|
$
|
867.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
867.5
|
|
Canada
|
|
174.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
174.9
|
|
|||||
South America
|
|
—
|
|
|
394.2
|
|
|
—
|
|
|
—
|
|
|
394.2
|
|
|||||
Germany
|
|
—
|
|
|
—
|
|
|
677.6
|
|
|
—
|
|
|
677.6
|
|
|||||
France
|
|
—
|
|
|
—
|
|
|
446.8
|
|
|
—
|
|
|
446.8
|
|
|||||
United Kingdom and Ireland
|
|
—
|
|
|
—
|
|
|
313.1
|
|
|
—
|
|
|
313.1
|
|
|||||
Finland and Scandinavia
|
|
—
|
|
|
—
|
|
|
408.8
|
|
|
—
|
|
|
408.8
|
|
|||||
Other Europe
|
|
—
|
|
|
—
|
|
|
853.2
|
|
|
—
|
|
|
853.2
|
|
|||||
Middle East and Algeria
|
|
—
|
|
|
—
|
|
|
9.4
|
|
|
—
|
|
|
9.4
|
|
|||||
Africa
|
|
—
|
|
|
—
|
|
|
—
|
|
|
44.2
|
|
|
44.2
|
|
|||||
Asia
|
|
—
|
|
|
—
|
|
|
—
|
|
|
161.6
|
|
|
161.6
|
|
|||||
Australia and New Zealand
|
|
—
|
|
|
—
|
|
|
—
|
|
|
125.3
|
|
|
125.3
|
|
|||||
Mexico, Central America and Caribbean
|
|
61.0
|
|
|
7.5
|
|
|
—
|
|
|
—
|
|
|
68.5
|
|
|||||
|
|
$
|
1,103.4
|
|
|
$
|
401.7
|
|
|
$
|
2,708.9
|
|
|
$
|
331.1
|
|
|
$
|
4,545.1
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Major products:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tractors
|
|
$
|
328.3
|
|
|
$
|
255.0
|
|
|
$
|
1,827.9
|
|
|
$
|
149.4
|
|
|
$
|
2,560.6
|
|
Replacement parts
|
|
158.5
|
|
|
43.6
|
|
|
463.2
|
|
|
35.6
|
|
|
700.9
|
|
|||||
Other machinery
|
|
198.9
|
|
|
22.6
|
|
|
242.5
|
|
|
28.5
|
|
|
492.5
|
|
|||||
Grain storage and protein production systems
|
|
281.9
|
|
|
29.4
|
|
|
92.8
|
|
|
104.1
|
|
|
508.2
|
|
|||||
Combines
|
|
27.7
|
|
|
40.1
|
|
|
73.1
|
|
|
2.6
|
|
|
143.5
|
|
|||||
Application equipment
|
|
108.1
|
|
|
11.0
|
|
|
9.3
|
|
|
11.0
|
|
|
139.4
|
|
|||||
|
|
$
|
1,103.4
|
|
|
$
|
401.7
|
|
|
$
|
2,708.9
|
|
|
$
|
331.1
|
|
|
$
|
4,545.1
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Rounding may impact summation of amounts.
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
|
Three Months Ended June 30,
|
|
Change
|
|
Change Due to Currency Translation
|
|
Change Due to Acquisitions
|
|||||||||||||||||||||
|
2018
|
|
2017
|
|
$
|
|
%
|
|
$
|
|
%
|
|
$
|
|
%
|
|||||||||||||
North America
|
$
|
600.5
|
|
|
$
|
478.8
|
|
|
$
|
121.7
|
|
|
25.4
|
%
|
|
$
|
3.4
|
|
|
0.7
|
%
|
|
$
|
23.8
|
|
|
5.0
|
%
|
South America
|
219.6
|
|
|
251.9
|
|
|
(32.3
|
)
|
|
(12.8
|
)%
|
|
(35.6
|
)
|
|
(14.1
|
)%
|
|
5.4
|
|
|
2.1
|
%
|
|||||
Europe/Middle East
|
1,545.2
|
|
|
1,269.5
|
|
|
275.7
|
|
|
21.7
|
%
|
|
95.1
|
|
|
7.5
|
%
|
|
46.9
|
|
|
3.7
|
%
|
|||||
Asia/Pacific/Africa
|
172.3
|
|
|
165.0
|
|
|
7.3
|
|
|
4.4
|
%
|
|
8.4
|
|
|
5.1
|
%
|
|
2.1
|
|
|
1.3
|
%
|
|||||
|
$
|
2,537.6
|
|
|
$
|
2,165.2
|
|
|
$
|
372.4
|
|
|
17.2
|
%
|
|
$
|
71.3
|
|
|
3.3
|
%
|
|
$
|
78.2
|
|
|
3.6
|
%
|
|
Six Months Ended June 30,
|
|
Change
|
|
Change Due to Currency Translation
|
|
Change Due to Acquisitions
|
|||||||||||||||||||||
|
2017
|
|
2016
|
|
$
|
|
%
|
|
$
|
|
%
|
|
$
|
|
%
|
|||||||||||||
North America
|
$
|
1,103.4
|
|
|
$
|
861.4
|
|
|
$
|
242.0
|
|
|
28.1
|
%
|
|
$
|
10.5
|
|
|
1.2
|
%
|
|
$
|
92.3
|
|
|
10.7
|
%
|
South America
|
401.7
|
|
|
474.1
|
|
|
(72.4
|
)
|
|
(15.3
|
)%
|
|
(46.3
|
)
|
|
(9.8
|
)%
|
|
7.9
|
|
|
1.7
|
%
|
|||||
Europe/Middle East
|
2,708.9
|
|
|
2,162.0
|
|
|
546.9
|
|
|
25.3
|
%
|
|
238.7
|
|
|
11.0
|
%
|
|
80.9
|
|
|
3.7
|
%
|
|||||
Asia/Pacific/Africa
|
331.1
|
|
|
295.3
|
|
|
35.8
|
|
|
12.1
|
%
|
|
20.7
|
|
|
7.0
|
%
|
|
6.5
|
|
|
2.2
|
%
|
|||||
|
$
|
4,545.1
|
|
|
$
|
3,792.8
|
|
|
$
|
752.3
|
|
|
19.8
|
%
|
|
$
|
223.6
|
|
|
5.9
|
%
|
|
$
|
187.6
|
|
|
4.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
||||||||||||
|
|
2018
|
|
2017
|
||||||||||
|
|
$
|
|
% of
Net Sales
|
|
$
|
|
% of
Net Sales
(1)
|
||||||
Gross profit
|
|
$
|
556.3
|
|
|
21.9
|
%
|
|
$
|
475.4
|
|
|
22.0
|
%
|
Selling, general and administrative expenses
|
|
271.8
|
|
|
10.7
|
%
|
|
234.6
|
|
|
10.8
|
%
|
||
Engineering expenses
|
|
93.0
|
|
|
3.7
|
%
|
|
76.8
|
|
|
3.5
|
%
|
||
Restructuring expenses
|
|
2.7
|
|
|
0.1
|
%
|
|
0.4
|
|
|
—
|
%
|
||
Amortization of intangibles
|
|
18.2
|
|
|
0.7
|
%
|
|
13.8
|
|
|
0.6
|
%
|
||
Bad debt expense
|
|
2.5
|
|
|
0.1
|
%
|
|
1.5
|
|
|
0.1
|
%
|
||
Income from operations
|
|
$
|
168.1
|
|
|
6.6
|
%
|
|
$
|
148.3
|
|
|
6.9
|
%
|
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2018
|
|
2017
|
||||||||||
|
|
$
|
|
% of
Net Sales (1) |
|
$
|
|
% of
Net Sales
|
||||||
Gross profit
|
|
$
|
984.3
|
|
|
21.7
|
%
|
|
$
|
805.7
|
|
|
21.2
|
%
|
Selling, general and administrative expenses
|
|
536.4
|
|
|
11.8
|
%
|
|
457.3
|
|
|
12.1
|
%
|
||
Engineering expenses
|
|
183.9
|
|
|
4.0
|
%
|
|
149.9
|
|
|
4.0
|
%
|
||
Restructuring expenses
|
|
8.6
|
|
|
0.2
|
%
|
|
5.5
|
|
|
0.1
|
%
|
||
Amortization of intangibles
|
|
33.9
|
|
|
0.7
|
%
|
|
27.2
|
|
|
0.7
|
%
|
||
Bad debt expense
|
|
2.9
|
|
|
0.1
|
%
|
|
1.8
|
|
|
—
|
%
|
||
Income from operations
|
|
$
|
218.6
|
|
|
4.8
|
%
|
|
$
|
164.0
|
|
|
4.3
|
%
|
|
|
|
|
|
|
|
|
|
(1)
|
Rounding may impact summation of amounts.
|
|
June 30, 2018
|
||
1.056% Senior term loan due 2020
|
$
|
232.9
|
|
Credit facility, expiring 2020
|
799.9
|
|
|
Senior term loans due 2021
|
116.4
|
|
|
5
7
/
8
% Senior notes due 2021
|
115.9
|
|
|
Senior term loans due between 2019 and 2026
|
436.6
|
|
|
Other long-term debt
|
46.8
|
|
|
Debt issuance costs
|
(2.6
|
)
|
|
|
$
|
1,745.9
|
|
•
|
general economic and capital market conditions;
|
•
|
availability of credit to our retail customers;
|
•
|
the worldwide demand for agricultural products;
|
•
|
grain stock levels and the levels of new and used field inventories;
|
•
|
government policies and subsidies;
|
•
|
uncertainty regarding changes in the international tariff regimes and their impact on the cost of the products that we sell;
|
•
|
weather conditions;
|
•
|
interest and foreign currency exchange rates;
|
•
|
pricing and product actions taken by competitors;
|
•
|
commodity prices, acreage planted and crop yields;
|
•
|
farm income, land values, debt levels and access to credit;
|
•
|
pervasive livestock diseases;
|
•
|
production disruptions;
|
•
|
production levels and capacity constraints at our facilities, including those resulting from plant expansions and systems upgrades;
|
•
|
integration of recent and future acquisitions;
|
•
|
our expansion plans in emerging markets;
|
•
|
supply constraints;
|
•
|
our cost reduction and control initiatives;
|
•
|
our research and development efforts;
|
•
|
dealer and distributor actions;
|
•
|
regulations affecting privacy and data protection;
|
•
|
technological difficulties; and
|
•
|
political and economic uncertainty in various areas of the world.
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 4.
|
CONTROLS AND PROCEDURES
|
PART II.
|
OTHER INFORMATION
|
ITEM 1.
|
LEGAL PROCEEDINGS
|
ITEM 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
Period
|
|
Total Number of Shares Purchased
|
|
Average Price Paid per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
(1)
|
|
Maximum Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in millions)
(1)
|
||||||
April 1, 2018 through
April 30, 2018
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
324.3
|
|
May 1, 2018 through
May 31, 2018
|
|
424,271
|
|
|
$
|
64.08
|
|
|
424,271
|
|
|
$
|
297.1
|
|
June 1, 2018 through
June 30, 2018
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
297.1
|
|
Total
|
|
424,271
|
|
|
$
|
64.08
|
|
|
424,271
|
|
|
$
|
297.1
|
|
ITEM 6.
|
EXHIBITS
|
Exhibit
Number
|
|
Description of Exhibit
|
|
The filings referenced for
incorporation by reference are
AGCO Corporation
|
|
|
|
|
|
|
|
Filed herewith
|
||
|
|
|
|
|
|
|
Filed herewith
|
||
|
|
|
||
|
|
Filed herewith
|
||
|
|
|
||
|
|
Furnished herewith
|
||
|
|
|
||
|
|
Filed herewith
|
||
|
|
|
||
|
|
Filed herewith
|
||
|
|
|
||
|
|
Filed herewith
|
||
|
|
|
||
|
|
Filed herewith
|
||
|
|
|
|
|
|
|
Filed herewith
|
||
|
|
|
||
|
|
Filed herewith
|
|
|
|
|
Date:
|
August 8, 2018
|
|
AGCO CORPORATION
Registrant
/s/ Andrew H. Beck
|
|
|
|
Andrew H. Beck
Senior Vice President and Chief Financial Officer
(Principal Financial Officer)
|
|
|
|
|
|
|
|
/s/ Lara T. Long
|
|
|
|
Lara T. Long
Vice President, Chief Accounting Officer
(Principal Accounting Officer)
|
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