| J.P. Morgan | | |
Goldman Sachs & Co. LLC
|
|
| | | | | S-i | | | |
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| | | | | S-30 | | |
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| | | | | 131 | | | |
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| | | | | F-1 | | |
| | |
As of September 30,
|
| |||||||||
(Dollars in millions)
|
| |
2020
|
| |
2019
|
| ||||||
Americas
|
| | | $ | 831.9 | | | | | $ | 673.2 | | |
Asia Pacific
|
| | | | 436.1 | | | | | | 310.1 | | |
EMEA
|
| | | | 579.6 | | | | | | 417.5 | | |
Total Backlog
|
| | | $ | 1,847.6 | | | | | $ | 1,400.8 | | |
| | |
As of December 31,
|
| |||||||||
(Dollars in millions)
|
| |
2019
|
| |
2018
|
| ||||||
Americas
|
| | | $ | 701.8 | | | | | $ | 806.8 | | |
Asia Pacific
|
| | | | 297.3 | | | | | | 281.3 | | |
EMEA
|
| | | | 402.1 | | | | | | 413.9 | | |
Total Backlog
|
| | | $ | 1,401.2 | | | | | $ | 1,502.0 | | |
(in millions except per share data)
|
| |
Nine months
ended September 30, 2020 |
| |
Nine months
ended September 30, 2019 |
| |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2017 |
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Consolidated and Combined Statement
of Earnings Data |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net sales | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net sales
|
| | | $ | 3,064.9 | | | | | $ | 3,259.7 | | | | | $ | 4,431.2 | | | | | $ | 4,285.6 | | | | | $ | 3,879.4 | | |
Costs and expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of sales
|
| | | | 2,018.6 | | | | | | 2,193.9 | | | | | | 2,978.2 | | | | | | 2,865.2 | | | | | | 2,566.8 | | |
Selling, General and administrative expenses
|
| | | | 742.9 | | | | | | 809.0 | | | | | | 1,100.8 | | | | | | 1,223.8 | | | | | | 1,086.0 | | |
Loss on extinguishment of debt(1)
|
| | | | 174.0 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Other deductions, net
|
| | | | 210.0 | | | | | | 98.6 | | | | | | 146.1 | | | | | | 178.8 | | | | | | 254.4 | | |
Interest expense
|
| | | | 125.4 | | | | | | 234.2 | | | | | | 310.4 | | | | | | 288.8 | | | | | | 379.3 | | |
Earnings (loss) from continuing operations before income taxes
|
| | | | (206.0) | | | | | | (76.0) | | | | | | (104.3) | | | | | | (271.0) | | | | | | (407.1) | | |
Income tax expense(benefit)
|
| | | | 52.5 | | | | | | 30.9 | | | | | | 36.5 | | | | | | 49.9 | | | | | | (19.7) | | |
Earnings (loss) from continuing operations
|
| | | | (258.5) | | | | | | (106.9) | | | | | | (140.8) | | | | | | (320.9) | | | | | | (387.4) | | |
Earnings (loss) fromdiscontinued operations,net of income taxes
|
| | | | — | | | | | | — | | | | | | — | | | | | | 6.9 | | | | | | 17.8 | | |
Net earnings (loss)
|
| | | $ | (258.5) | | | | | $ | (106.9) | | | | | $ | (140.8) | | | | | $ | (314.0) | | | | | $ | (369.6) | | |
Earnings (loss) per share (basic and diluted)
|
| | | | (0.86) | | | | | | (0.90) | | | | | | (1.19) | | | | | | (2.66) | | | | | | (3.13) | | |
(in millions)
|
| |
Nine months
ended September 30, 2020 |
| |
Nine months
ended September 30, 2019 |
| |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2017 |
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Consolidated and Combined Cash Flow
Data: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net cash provided by (used for) operating activities
|
| | | $ | 14.4 | | | | | $ | (58.1) | | | | | $ | 57.5 | | | | | $ | (221.9) | | | | | $ | (49.6) | | |
Net cash provided by (used for) investing activities
|
| | | | (26.2) | | | | | | (38.4) | | | | | | (65.3) | | | | | | (207.7) | | | | | | 1,058.1 | | |
Net cash provided by (used for) financing activities
|
| | | | 112.3 | | | | | | 33.8 | | | | | | 14.8 | | | | | | 245.1 | | | | | | (874.1) | | |
Purchase of property, plantand equipment
|
| | | | (21.3) | | | | | | (27.9) | | | | | | (47.6) | | | | | | (64.6) | | | | | | (36.7) | | |
Consolidated and Combined Balance Sheet Data (at endof period):
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash
|
| | | $ | 324.3 | | | | | $ | 149.3 | | | | | $ | 223.5 | | | | | $ | 215.1 | | | | | $ | 388.0 | | |
Working capital(1)
|
| | | | 649.5 | | | | | | 492.0 | | | | | | 497.7 | | | | | | 488.9 | | | | | | 539.2 | | |
Total current assets
|
| | | | 2,251.1 | | | | | | 1,963.3 | | | | | | 2,017.4 | | | | | | 2,095.3 | | | | | | 1,988.1 | | |
Property, plant andequipment, net
|
| | | | 406.9 | | | | | | 415.2 | | | | | | 428.2 | | | | | | 441.7 | | | | | | 462.8 | | |
Total assets
|
| | | | 4,771.7 | | | | | | 4,611.2 | | | | | | 4,657.4 | | | | | | 4,794.4 | | | | | | 4,808.5 | | |
Total equity
|
| | | | 371.7 | | | | | | (696.2) | | | | | | (704.8) | | | | | | (540.3) | | | | | | (129.6) | | |
Total debt
|
| | | | 2,275.9 | | | | | | 3,479.5 | | | | | | 3,467.3 | | | | | | 3,427.8 | | | | | | 3,159.6 | | |
(in millions)
|
| |
Nine months
ended September 30, 2020 |
| |
Nine months
ended September 30, 2019 |
| |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2017 |
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EBITDA(1) | | | | $ | 70.1 | | | | | $ | 310.0 | | | | | $ | 409.0 | | | | | $ | 234.8 | | | | | $ | 259.0 | | |
Adjusted EBITDA(1)
|
| | | $ | 394.0 | | | | | $ | 392.8 | | | | | $ | 541.5 | | | | | $ | 502.4 | | | | | $ | 500.0 | | |
Free Cash Flow(2)
|
| | | $ | (11.8) | | | | | $ | (96.5) | | | | | $ | (7.8) | | | | | $ | (309.7) | | | | | $ | (94.0) | | |
(in millions)
|
| |
Nine months
ended September 30, 2020 |
| |
Nine months
ended September 30, 2019 |
| |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2017 |
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Net loss
|
| | |
$
|
(258.5)
|
| | | |
$
|
(106.9)
|
| | | |
$
|
(140.8)
|
| | | |
$
|
(314.0)
|
| | | |
$
|
(369.6)
|
| |
Earnings (loss) from discontinued operations – net of income tax
|
| | | | — | | | | | | — | | | | | | — | | | | | | 6.9 | | | | | | 17.8 | | |
Net loss from continuing operations
|
| | | | (258.5) | | | | | | (106.9) | | | | | | (140.8) | | | | | | (320.9) | | | | | | (387.4) | | |
Interest expense
|
| | | | 125.4 | | | | | | 234.2 | | | | | | 310.4 | | | | | | 288.8 | | | | | | 379.3 | | |
Income tax expense (benefit)
|
| | | | 52.5 | | | | | | 30.9 | | | | | | 36.5 | | | | | | 49.9 | | | | | | (19.7) | | |
Depreciation and amortization
|
| | | | 150.7 | | | | | | 151.8 | | | | | | 202.9 | | | | | | 217.0 | | | | | | 286.8 | | |
EBITDA | | | | | 70.1 | | | | | | 310.0 | | | | | | 409.0 | | | | | | 234.8 | | | | | | 259.0 | | |
Loss on extinguishment of debt(a)
|
| | | | 174.0 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
SPAC transaction costs(b)
|
| | | | 21.4 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Equity-based compensation(c)
|
| | | | 7.0 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Cost to achieve operational initiatives(d)
|
| | | | 5.2 | | | | | | 34.6 | | | | | | 51.8 | | | | | | 99.9 | | | | | | 83.5 | | |
Digital project implementation
costs(e) |
| | | | 16.1 | | | | | | 32.7 | | | | | | 44.7 | | | | | | 75.5 | | | | | | 6.9 | | |
Transition costs(f)
|
| | | | 5.7 | | | | | | 15.4 | | | | | | 16.1 | | | | | | 70.7 | | | | | | 104.4 | | |
Foreign currency (gains)/losses(g)
|
| | | | — | | | | | | (6.6) | | | | | | (1.4) | | | | | | (5.4) | | | | | | 11.2 | | |
Contingent consideration(h)
|
| | | | — | | | | | | — | | | | | | — | | | | | | (10.0) | | | | | | (17.9) | | |
Acquisition costs(i)
|
| | | | — | | | | | | — | | | | | | 0.5 | | | | | | 7.1 | | | | | | — | | |
Advisory fee(j)
|
| | | | 0.5 | | | | | | 5.0 | | | | | | 6.2 | | | | | | 5.0 | | | | | | 19.2 | | |
Impact of purchase accounting(k)
|
| | | | 1.3 | | | | | | 1.5 | | | | | | 2.0 | | | | | | 5.9 | | | | | | 33.1 | | |
Reserve for customer dispute(l)
|
| | | | — | | | | | | — | | | | | | — | | | | | | 7.3 | | | | | | — | | |
Loss on asset disposals(m)
|
| | | | — | | | | | | 0.2 | | | | | | 0.5 | | | | | | 3.1 | | | | | | 0.6 | | |
Reserve for warranty item(n)
|
| | | | — | | | | | | — | | | | | | 4.4 | | | | | | 8.5 | | | | | | — | | |
Product line rationalization(o)
|
| | | | — | | | | | | — | | | | | | 7.7 | | | | | | — | | | | | | — | | |
Restructuring reserve(p)
|
| | | | 71.0 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Asset impairment(q)
|
| | | | 21.7 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Adjusted EBITDA
|
| | | $ | 394.0 | | | | | $ | 392.8 | | | | | $ | 541.5 | | | | | $ | 502.4 | | | | | $ | 500.0 | | |
(in millions)
|
| |
Nine months
ended September 30, 2020 |
| |
Nine months
ended September 30, 2019 |
| |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2017 |
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Net cash provided by (used for) operating activities
|
| | | $ | 14.4 | | | | | $ | (58.1) | | | | | $ | 57.5 | | | | | $ | (221.9) | | | | | $ | (49.6) | | |
Capital expenditures
|
| | | | (21.3) | | | | | | (27.9) | | | | | | (47.6) | | | | | | (64.6) | | | | | | (36.7) | | |
Investments in capitalized software
|
| | | | (4.9) | | | | | | (15.5) | | | | | | (22.7) | | | | | | (41.2) | | | | | | (7.7) | | |
Proceeds from disposition of property,
plant andequipment |
| | | | — | | | | | | 5.0 | | | | | | 5.0 | | | | | | 18.0 | | | | | | — | | |
Free Cash Flow
|
| | | $ | (11.8) | | | | | $ | (96.5) | | | | | $ | (7.8) | | | | | $ | (309.7) | | | | | $ | (94.0) | | |
(Dollars in millions)
|
| |
As of
September 30, 2020 |
| |||
Cash and cash equivalents
|
| | | $ | 324.3 | | |
Long-term debt (excluding debt issuance costs) | | | | | | | |
Term Loan Facility
|
| | | $ | 2,189.0 | | |
Asset-Based Revolving Credit Facility(1)
|
| | | $ | 100.0 | | |
Total long-term debt (excluding debt issuance costs)
|
| | | $ | 2,289.0 | | |
Short-term borrowings
|
| | | $ | 19.1 | | |
Equity | | | | | | | |
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, none issued and outstanding
|
| | | | — | | |
Class A common stock, $0.0001 par value, 700,000,000 shares authorized, 328,411,705 shares issued and outstanding at September 30, 2020
|
| | | | — | | |
Additional paid-in capital
|
| | | $ | 1,641.9 | | |
Accumulated deficit
|
| | | $ | (1,259.1) | | |
Accumulated other comprehensive (loss) income
|
| | | $ | (11.1) | | |
Total equity (deficit)
|
| | | $ | 371.7 | | |
Total capitalization (including cash and cash equivalents)
|
| | | $ | 3,004.1 | | |
| | |
Beneficial Ownership
Before the Offering |
| |
Shares to be Sold
in the Offering |
| |
Beneficial Ownership After
the Offering |
| |||||||||||||||||||||||||||
Name of Selling Stockholder
|
| |
Number of Shares
|
| |
%(1)
|
| |
Number of
Shares |
| |
%(1)
|
| |
Number of
Shares |
| |
%(1)
|
| ||||||||||||||||||
VPE Holdings, LLC(2)
|
| | | | 95,261,955 | | | | | | 29.0% | | | | | | 18,000,000 | | | | | | 5.5% | | | | | | 77,261,955 | | | | | | 23.5% | | |
| | | | | i | | | |
| | | | | ii | | | |
| | | | | ii | | | |
| | | | | ii | | | |
| | | | | vii | | | |
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| | | | | 12 | | | |
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| | | | | 42 | | | |
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| | | | | F-1 | | |
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Successor
|
| | |
Predecessor
|
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(in millions except per share
data) |
| |
Nine months
ended September 30, 2020 |
| |
Nine months
ended September 30, 2019 |
| |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2017 |
| |
One month
ended December 31, 2016 |
| | |
Two months
ended November 30, 2016 |
| |
Year ended
September 30, 2016 |
| |
Year ended
September 30, 2015 |
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Consolidated and Combined
Statement of Earnings Data |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net sales | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net sales
|
| | | $ | 3,064.9 | | | | | $ | 3,259.7 | | | | | $ | 4,431.2 | | | | | $ | 4,285.6 | | | | | $ | 3,879.4 | | | | | $ | 301.7 | | | | | | $ | 566.2 | | | | | $ | 3,943.5 | | | | | $ | 4,025.1 | | |
Costs and expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of sales
|
| | | | 2,018.6 | | | | | | 2,193.9 | | | | | | 2,978.2 | | | | | | 2,865.2 | | | | | | 2,566.8 | | | | | | 240.3 | | | | | | | 369.3 | | | | | | 2,532.6 | | | | | | 2,669.1 | | |
Selling, General and administrative
expenses |
| | | | 742.9 | | | | | | 809.0 | | | | | | 1,100.8 | | | | | | 1,223.8 | | | | | | 1,086.0 | | | | | | 162.3 | | | | | | | 164.3 | | | | | | 980.8 | | | | | | 1,009.7 | | |
Goodwill
impairment |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | 57.0 | | | | | | 154.0 | | |
Loss on extinguishment of
debt(1) |
| | | | 174.0 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | |
Other deductions,
net |
| | | | 210.0 | | | | | | 98.6 | | | | | | 146.1 | | | | | | 178.8 | | | | | | 254.4 | | | | | | 42.5 | | | | | | | 14.7 | | | | | | 125.9 | | | | | | 208.0 | | |
Interest expense
(income) |
| | | | 125.4 | | | | | | 234.2 | | | | | | 310.4 | | | | | | 288.8 | | | | | | 379.3 | | | | | | 27.8 | | | | | | | 0.3 | | | | | | (3.5) | | | | | | (3.8) | | |
Earnings (loss) from continuing
operations before income taxes |
| | | | (206.0) | | | | | | (76.0) | | | | | | (104.3) | | | | | | (271.0) | | | | | | (407.1) | | | | | | (171.2) | | | | | | | 17.6 | | | | | | 250.7 | | | | | | (11.9) | | |
Income tax expense
(benefit) |
| | | | 52.5 | | | | | | 30.9 | | | | | | 36.5 | | | | | | 49.9 | | | | | | (19.7) | | | | | | (4.3) | | | | | | | 24.3 | | | | | | 140.1 | | | | | | 100.3 | | |
Earnings (loss) from continuing
operations |
| | | | (258.5) | | | | | | (106.9) | | | | | | (140.8) | | | | | | (320.9) | | | | | | (387.4) | | | | | | (166.9) | | | | | | | (6.7) | | | | | | 110.6 | | | | | | (112.2) | | |
Earnings (loss) from
discontinued operations, net of income taxes |
| | | | — | | | | | | — | | | | | | — | | | | | | 6.9 | | | | | | 17.8 | | | | | | (4.3) | | | | | | | 7.2 | | | | | | 47.1 | | | | | | 50.4 | | |
Net earnings
(loss) |
| | | $ | (258.5) | | | | | $ | (106.9) | | | | | $ | (140.8) | | | | | $ | (314.0) | | | | | $ | (369.6) | | | | | $ | (171.2) | | | | | | $ | 0.5 | | | | | $ | 157.7 | | | | | $ | (61.8) | | |
Earnings (loss) per share (basic and diluted)
|
| | | $ | (0.86) | | | | | $ | (0.90) | | | | | $ | (1.19) | | | | | $ | (2.66) | | | | | $ | (3.13) | | | | | $ | (1.45) | | | | | | $ | 0.00 | | | | | $ | 1.33 | | | | | $ | (0.52) | | |
| | |
Successor
|
| | |
Predecessor
|
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(in millions)
|
| |
Nine months
ended September 30, 2020 |
| |
Nine months
ended September 30, 2019 |
| |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2017 |
| |
One
month ended December 31, 2016 |
| | |
Two
months ended November 30, 2016 |
| |
Year ended
September 30, 2016 |
| |
Year ended
September 30, 2015 |
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Consolidated and
Combined Cash Flow Data: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net cash provided by (used for) operating activities
|
| | | $ | 14.4 | | | | | $ | (58.1) | | | | | $ | 57.5 | | | | | $ | (221.9) | | | | | $ | (49.6) | | | | | $ | 59.8 | | | | | | $ | (37.2) | | | | | $ | 370.2 | | | | | $ | 340.5 | | |
Net cash provided by (used for) investing activities
|
| | | | (26.2) | | | | | | (38.4) | | | | | | (65.3) | | | | | | (207.7) | | | | | | 1,058.1 | | | | | | (3,925.2) | | | | | | | (10.5) | | | | | | (30.2) | | | | | | (46.4) | | |
Net cash provided by (used for) financing activities
|
| | | | 112.3 | | | | | | 33.8 | | | | | | 14.8 | | | | | | 245.1 | | | | | | (874.1) | | | | | | 4,106.6 | | | | | | | (136.8) | | | | | | (199.1) | | | | | | (292.9) | | |
Purchase of property, plant and
equipment |
| | | | (21.3) | | | | | | (27.9) | | | | | | (47.6) | | | | | | (64.6) | | | | | | (36.7) | | | | | | (4.7) | | | | | | | (8.5) | | | | | | (34.0) | | | | | | (44.9) | | |
Consolidated and
Combined Balance Sheet Data (at end of period): |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash
|
| | | $ | 324.3 | | | | | $ | 149.3 | | | | | $ | 223.5 | | | | | $ | 215.1 | | | | | $ | 388.0 | | | | | $ | 249.6 | | | | | | $ | 92.3 | | | | | $ | 272.0 | | | | | $ | 131.6 | | |
Working
capital(2) |
| | | | 649.5 | | | | | | 492.0 | | | | | | 497.7 | | | | | | 488.9 | | | | | | 539.2 | | | | | | 444.1 | | | | | | | 456.8 | | | | | | 585.4 | | | | | | 507.1 | | |
Total current
assets |
| | | | 2,251.1 | | | | | | 1,963.3 | | | | | | 2,017.4 | | | | | | 2,095.3 | | | | | | 1,988.1 | | | | | | 1,935.9 | | | | | | | 1,805.9 | | | | | | 1,989.1 | | | | | | 1,812.2 | | |
Property, plant and equipment,
net |
| | | | 406.9 | | | | | | 415.2 | | | | | | 428.2 | | | | | | 441.7 | | | | | | 462.8 | | | | | | 444.5 | | | | | | | 299.7 | | | | | | 308.1 | | | | | | 331.1 | | |
Total assets
|
| | | | 4,771.7 | | | | | | 4,611.2 | | | | | | 4,657.4 | | | | | | 4,794.4 | | | | | | 4,808.5 | | | | | | 5,859.3 | | | | | | | 4,456.7 | | | | | | 4,709.0 | | | | | | 4,745.9 | | |
Total equity
|
| | | | 371.7 | | | | | | (696.2) | | | | | | (704.8) | | | | | | (540.3) | | | | | | (129.6) | | | | | | 1,120.0 | | | | | | | 2,858.1 | | | | | | 3,068.3 | | | | | | 3,162.4 | | |
Total debt
|
| | | | 2,275.9 | | | | | | 3,479.5 | | | | | | 3,467.3 | | | | | | 3,427.8 | | | | | | 3,159.6 | | | | | | 2,916.1 | | | | | | | — | | | | | | — | | | | | | — | | |
| | |
As of September 30,
|
| |||||||||
(Dollars in millions)
|
| |
2020
|
| |
2019
|
| ||||||
Americas
|
| | | $ | 831.9 | | | | | $ | 673.2 | | |
Asia Pacific
|
| | | | 436.1 | | | | | | 310.1 | | |
EMEA
|
| | | | 579.6 | | | | | | 417.5 | | |
Total Backlog
|
| | | $ | 1,847.6 | | | | | $ | 1,400.8 | | |
| | |
As of December 31,
|
| |||||||||
(Dollars in millions)
|
| |
2019
|
| |
2018
|
| ||||||
Americas
|
| | | $ | 701.8 | | | | | $ | 806.8 | | |
Asia Pacific
|
| | | | 297.3 | | | | | | 281.3 | | |
EMEA
|
| | | | 402.1 | | | | | | 413.9 | | |
Total Backlog
|
| | | $ | 1,401.2 | | | | | $ | 1,502.0 | | |
(Dollars in millions)
|
| |
2020
|
| |
2019
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||
Net sales
|
| | | $ | 3,064.9 | | | | | $ | 3,259.7 | | | | | $ | (194.8) | | | | | | (6.0)% | | |
Cost of sales
|
| | | | 2,018.6 | | | | | | 2,193.9 | | | | | | (175.3) | | | | | | (8.0)% | | |
Gross profit
|
| | | | 1,046.3 | | | | | | 1,065.8 | | | | | | (19.5) | | | | | | (1.8)% | | |
Selling, general and administrative expenses
|
| | | | 742.9 | | | | | | 809.0 | | | | | | (66.1) | | | | | | (8.2)% | | |
Loss on extinguishment of debt
|
| | | | 174.0 | | | | | | — | | | | | | 174.0 | | | | | | 100.0% | | |
Other deductions, net
|
| | | | 210.0 | | | | | | 98.6 | | | | | | 111.4 | | | | | | 113.0% | | |
(Loss) earnings before interest & income taxes
|
| | | | (80.6) | | | | | | 158.2 | | | | | | (238.8) | | | | | | (150.9)% | | |
Interest expense, net
|
| | | | 125.4 | | | | | | 234.2 | | | | | | (108.8) | | | | | | (46.5)% | | |
Income tax expense
|
| | | | 52.5 | | | | | | 30.9 | | | | | | 21.6 | | | | | | 69.9% | | |
Net Loss
|
| | | $ | (258.5) | | | | | $ | (106.9) | | | | | $ | (151.6) | | | | | | 141.8% | | |
(Dollars in millions)
|
| |
Nine months ended
September 30, 2020 |
| |
Nine months ended
September 30, 2019 |
| |
$ Change
|
| |
% Change
|
| ||||||||||||
Net sales
|
| | | $ | 1,483.3 | | | | | $ | 1,675.4 | | | | | $ | (192.1) | | | | | | (11.5)% | | |
Earnings before interest and taxes
|
| | | | 260.3 | | | | | | 270.6 | | | | | | (10.3) | | | | | | (3.8)% | | |
Margin
|
| | | | 17.5% | | | | | | 16.2% | | | | | | | | | | | | | | |
(Dollars in millions)
|
| |
Nine months ended
September 30, 2020 |
| |
Nine months ended
September 30, 2019 |
| |
$ Change
|
| |
% Change
|
| ||||||||||||
Net sales
|
| | | $ | 926.3 | | | | | $ | 906.1 | | | | | $ | 20.2 | | | | | | 2.2% | | |
Earnings before interest and taxes
|
| | | | 98.9 | | | | | | 116.8 | | | | | | (17.9) | | | | | | (15.3)% | | |
Margin
|
| | | | 10.7% | | | | | | 12.9% | | | | | | | | | | | | | | |
(Dollars in millions)
|
| |
Nine months ended
September 30, 2020 |
| |
Nine months ended
September 30, 2019 |
| |
$ Change
|
| |
% Change
|
| ||||||||||||
Net sales
|
| | | $ | 655.3 | | | | | $ | 678.2 | | | | | $ | (22.9) | | | | | | (3.4)% | | |
Earnings before interest and taxes
|
| | | | 31.0 | | | | | | 56.8 | | | | | | (25.8) | | | | | | (45.4)% | | |
Margin
|
| | | | 4.7% | | | | | | 8.4% | | | | | | | | | | | | | | |
(Dollars in millions)
|
| |
2019
|
| |
2018
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||
Net sales
|
| | | $ | 4,431.2 | | | | | $ | 4,285.6 | | | | | $ | 145.6 | | | | | | 3.4% | | |
Cost of sales
|
| | | | 2,978.2 | | | | | | 2,865.2 | | | | | | 113.0 | | | | | | 3.9% | | |
Gross profit
|
| | | | 1,453.0 | | | | | | 1,420.4 | | | | | | 32.6 | | | | | | 2.3% | | |
Selling, general & administrative expenses
|
| | | | 1,100.8 | | | | | | 1,223.8 | | | | | | (123.0) | | | | | | (10.1)% | | |
Other deductions, net
|
| | | | 146.1 | | | | | | 178.8 | | | | | | (32.7) | | | | | | (18.3)% | | |
(Dollars in millions)
|
| |
2019
|
| |
2018
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||
Earnings from continuing operations before interest & income taxes
|
| | | | 206.1 | | | | | | 17.8 | | | | | | 188.3 | | | | | | 1,057.9% | | |
Interest expense, net
|
| | | | 310.4 | | | | | | 288.8 | | | | | | 21.6 | | | | | | 7.5% | | |
Income tax expense
|
| | | | 36.5 | | | | | | 49.9 | | | | | | (13.4) | | | | | | (26.9)% | | |
Loss from continuing operations
|
| | | $ | (140.8) | | | | | $ | (320.9) | | | | | $ | 180.1 | | | | | | (56.1)% | | |
(Dollars in millions)
|
| |
December 31,
2019 |
| |
December 31,
2018 |
| |
$ Change
|
| |
% Change
|
| ||||||||||||
Net sales
|
| | | $ | 2,229.1 | | | | | $ | 2,145.7 | | | | | $ | 83.4 | | | | | | 3.9% | | |
Earnings before interest and taxes
|
| | | | 354.3 | | | | | | 301.0 | | | | | | 53.3 | | | | | | 17.7% | | |
Margin
|
| | | | 15.9% | | | | | | 14.0% | | | | | | | | | | | | | | |
(Dollars in millions)
|
| |
December 31,
2019 |
| |
December 31,
2018 |
| |
$ Change
|
| |
% Change
|
| ||||||||||||
Net sales
|
| | | $ | 1,278.0 | | | | | $ | 1,244.2 | | | | | $ | 33.8 | | | | | | 2.7% | | |
Earnings before interest and taxes
|
| | | | 150.0 | | | | | | 136.6 | | | | | | 13.4 | | | | | | 9.8% | | |
Margin
|
| | | | 11.7% | | | | | | 11.0% | | | | | | | | | | | | | | |
(Dollars in millions)
|
| |
December 31,
2019 |
| |
December 31,
2018 |
| |
$ Change
|
| |
% Change
|
| ||||||||||||
Net sales
|
| | | $ | 924.1 | | | | | $ | 895.7 | | | | | $ | 28.4 | | | | | | 3.2% | | |
Earnings before interest and taxes
|
| | | $ | 64.3 | | | | | $ | 29.8 | | | | | $ | 34.5 | | | | | | 115.8% | | |
Margin
|
| | | | 7.0% | | | | | | 3.3% | | | | | | | | | | | | | | |
(Dollars in millions)
|
| |
2018
|
| |
2017
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||
Net sales
|
| | | $ | 4,285.6 | | | | | $ | 3,879.4 | | | | | $ | 406.2 | | | | | | 10.5% | | |
Cost of sales
|
| | | | 2,865.2 | | | | | | 2,566.8 | | | | | | 298.4 | | | | | | 11.6% | | |
Gross profit
|
| | | | 1,420.4 | | | | | | 1,312.6 | | | | | | 107.8 | | | | | | 8.2% | | |
Selling, general & administrative expenses
|
| | | | 1,223.8 | | | | | | 1,086.0 | | | | | | 137.8 | | | | | | 12.7% | | |
Other deductions, net
|
| | | | 178.8 | | | | | | 254.4 | | | | | | (75.6) | | | | | | (29.7)% | | |
Income (loss) from continuing operations before interest & income taxes
|
| | | | 17.8 | | | | | | (27.8) | | | | | | 45.6 | | | | | | (164.0)% | | |
Interest expense, net
|
| | | | 288.8 | | | | | | 379.3 | | | | | | (90.5) | | | | | | (23.9)% | | |
Income tax expense (benefit)
|
| | | | 49.9 | | | | | | (19.7) | | | | | | 69.6 | | | | | | (353.3)% | | |
Loss from continuing operations
|
| | | $ | (320.9) | | | | | $ | (387.4) | | | | | $ | 66.5 | | | | | | (17.2)% | | |
(Dollars in millions)
|
| |
December 31,
2018 |
| |
December 31,
2017 |
| |
$ Change
|
| |
% Change
|
| ||||||||||||
Net sales
|
| | | $ | 2,175.6 | | | | | $ | 1,886.7 | | | | | $ | 288.9 | | | | | | 15.3% | | |
Earnings before interest and taxes
|
| | | | 301.0 | | | | | | 241.8 | | | | | | 59.2 | | | | | | 24.5% | | |
Margin
|
| | | | 13.8% | | | | | | 12.8% | | | | | | | | | | | | | | |
(Dollars in millions)
|
| |
December 31,
2018 |
| |
December 31,
2017 |
| |
$ Change
|
| |
% Change
|
| ||||||||||||
Net sales
|
| | | $ | 1,346.9 | | | | | $ | 1,239.5 | | | | | $ | 107.4 | | | | | | 8.7% | | |
Earnings before interest and taxes
|
| | | | 136.6 | | | | | | 64.2 | | | | | | 72.4 | | | | | | 112.8% | | |
Margin
|
| | | | 10.1% | | | | | | 5.2% | | | | | | | | | | | | | | |
(Dollars in millions)
|
| |
December 31,
2018 |
| |
December 31,
2017 |
| |
$ Change
|
| |
% Change
|
| ||||||||||||
Net sales
|
| | | $ | 938.0 | | | | | $ | 918.1 | | | | | $ | 19.9 | | | | | | 2.2% | | |
Earnings before interest and taxes
|
| | | | 29.8 | | | | | | 45.4 | | | | | | (15.6) | | | | | | (34.4)% | | |
Margin
|
| | | | 3.2% | | | | | | 4.9% | | | | | | | | | | | | | | |
(Dollars in millions)
|
| |
2020
|
| |
2019
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||
Net cash provided by (used for) operating activities
|
| | | $ | 14.4 | | | | | $ | 58.1 | | | | | $ | 72.5 | | | | | | (124.8)% | | |
Net cash used for investing activities
|
| | | | (26.2) | | | | | | (38.4) | | | | | | 12.2 | | | | | | (31.8)% | | |
Net cash provided by financing activities
|
| | | | 112.3 | | | | | | 33.8 | | | | | | 78.5 | | | | | | 232.2% | | |
Capital expenditures
|
| | | | (21.3) | | | | | | (27.9) | | | | | | 6.6 | | | | | | (23.7)% | | |
Investments in capitalized software
|
| | | | (4.9) | | | | | | (15.5) | | | | | | 10.6 | | | | | | (68.4)% | | |
(Dollars in millions)
|
| |
2019
|
| |
2018
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||
Net cash provided by (used for) operating activities
|
| | | $ | 57.5 | | | | | $ | (221.9) | | | | | $ | 279.4 | | | | | | (125.9)% | | |
Net cash used for investing activities
|
| | | | (65.3) | | | | | | (207.7) | | | | | | 142.4 | | | | | | (68.6)% | | |
Net cash provided by financing activities
|
| | | | 14.8 | | | | | | 245.1 | | | | | | (230.3) | | | | | | (94.0)% | | |
Capital expenditures
|
| | | | (47.6) | | | | | | (64.6) | | | | | | 17.0 | | | | | | (26.3)% | | |
Investments in capitalized software
|
| | | | (22.7) | | | | | | (41.2) | | | | | | 18.5 | | | | | | (44.9)% | | |
(Dollars in millions)
|
| |
2018
|
| |
2017
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||
Net cash used for operating activities
|
| | | $ | (221.9) | | | | | $ | (49.6) | | | | | $ | (172.3) | | | | | | 347.4% | | |
Net cash (used for) provided by investing activities
|
| | | | (207.7) | | | | | | 1,058.1 | | | | | | (1,265.8) | | | | | | (119.6)% | | |
Net cash provided by (used for) financing activities
|
| | | | 245.1 | | | | | | (874.1) | | | | | | 1,119.2 | | | | | | (128.0)% | | |
Capital Expenditures
|
| | | | (64.6) | | | | | | (36.7) | | | | | | (27.9) | | | | | | 76.0% | | |
Investments in capitalized software
|
| | | | (41.2) | | | | | | (7.7) | | | | | | (33.5) | | | | | | 435.1% | | |
| | |
Amounts Due By Period
|
| |||||||||||||||||||||||||||
(Dollars in millions)
|
| |
Total
|
| |
Less Than
1 Year |
| |
1 – 3 years
|
| |
3 – 5 years
|
| |
More Than
5 Years |
| |||||||||||||||
Operating leases
|
| | | $ | 141.8 | | | | | $ | 43.3 | | | | | $ | 55.7 | | | | | $ | 28.6 | | | | | $ | 14.2 | | |
Purchase obligations
|
| | | | 90.0 | | | | | | 48.2 | | | | | | 34.3 | | | | | | 7.5 | | | | | | — | | |
| | |
Prior Term
Loan Facility |
| |
2024 Senior
Notes |
| |
2022 Senior
Notes |
| |
Prior
Asset- Based Revolving Credit Facility |
| |
2024 Senior
Secured Notes |
| |
Total
|
| ||||||||||||||||||
2020
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
2021
|
| | | | — | | | | | | — | | | | | | — | | | | | | 145.2 | | | | | | — | | | | | | 145.2 | | |
2022
|
| | | | — | | | | | | — | | | | | | 500.0 | | | | | | — | | | | | | — | | | | | | 500.0 | | |
2023
|
| | | | 2,070.0 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,070.0 | | |
2024
|
| | | | — | | | | | | 750.0 | | | | | | — | | | | | | — | | | | | | 120.0 | | | | | | 870.0 | | |
Total
|
| | | $ | 2,070.0 | | | | | $ | 750.0 | | | | | $ | 500.0 | | | | | $ | 145.2 | | | | | $ | 120.0 | | | | | $ | 3,585.2 | | |
| | |
Term Loan
Facility |
| |
Asset-Based
Revolving Credit Facility |
| |
Short-term
borrowings |
| |
Total
|
| ||||||||||||
2020
|
| | | $ | 5.5 | | | | | $ | — | | | | | $ | 19.1 | | | | | $ | 24.6 | | |
2021
|
| | | | 22.0 | | | | | | — | | | | | | — | | | | | | 22.0 | | |
2022
|
| | | | 22.0 | | | | | | — | | | | | | — | | | | | | 22.0 | | |
2023
|
| | | | 22.0 | | | | | | — | | | | | | — | | | | | | 22.0 | | |
2024
|
| | | | 22.0 | | | | | | — | | | | | | — | | | | | | 22.0 | | |
2025
|
| | | | 22.0 | | | | | | 100.0 | | | | | | — | | | | | | 122.0 | | |
Thereafter
|
| | | | 2,073.5 | | | | | | — | | | | | | — | | | | | | 2,073.5 | | |
Total
|
| | | $ | 2,189.0 | | | | | $ | 100.0 | | | | | $ | 19.1 | | | | | $ | 2,308.1 | | |
Executive
|
| |
Annual Salary as of
January 2019 |
| |||
R. Johnson
|
| | | $ | 950,000 | | |
D. Fallon
|
| | | $ | 575,000 | | |
S. Liang
|
| | | $ | 557,004 | | |
J. Forcier
|
| | | $ | 400,000 | | |
J. Hewitt
|
| | | $ | 450,000 | | |
Executive
|
| |
Annual Salary as of
December 31, 2018 |
| |
Salary
Increase (%) |
| |
New Annual
Salary |
| |
New Salary
Effective Date |
| |||||||||
S. Liang
|
| | | $ | 557,004 | | | | | | 6% | | | | | $ | 590,424 | | | |
April 1, 2019
|
|
J. Forcier
|
| | | $ | 400,000 | | | | | | 25% | | | | | $ | 500,000 | | | |
June 1, 2019
|
|
J. Hewitt
|
| | | $ | 450,000 | | | | | | 4% | | | | | $ | 468,000 | | | |
June 24, 2019
|
|
Named Executive Officer
|
| |
2019 Target Bonus
Opportunity (as % of Base Salary) |
| |
2019 Annual Target
Bonus Opportunity ($) |
| |||
R. Johnson
|
| |
100%
|
| | | $ | 950,000 | | |
D. Fallon
|
| |
100%
|
| | | $ | 575,000 | | |
S. Liang
|
| |
N/A
|
| | | $ | 231,000 | | |
J. Forcier (Effective January 1, 2019)
|
| |
60%
|
| | | $ | 240,000 | | |
J. Forcier (Effective June 1, 2019)
|
| |
80%
|
| | | $ | 400,000 | | |
J. Hewitt
|
| |
65%
|
| | | $ | 292,500 | | |
| | |
2019 Annual Incentive Plan Weightings
|
| |||||||||||||||||||||
Executive
|
| |
Company-wide
EBITDAR |
| |
Company-wide
Controllable Cash |
| |
Company-wide
SG&A |
| |
Company-wide
Sales Growth |
| ||||||||||||
R. Johnson
|
| | | | 50% | | | | | | 20% | | | | | | 20% | | | | | | 10% | | |
D. Fallon
|
| | | | 50% | | | | | | 20% | | | | | | 20% | | | | | | 10% | | |
S. Liang
|
| | | | 50% | | | | | | 20% | | | | | | 20% | | | | | | 10% | | |
J. Forcier
|
| | | | 50% | | | | | | 20% | | | | | | 20% | | | | | | 10% | | |
J. Hewitt
|
| | | | 50% | | | | | | 20% | | | | | | 20% | | | | | | 10% | | |
Metric
|
| |
Weighting
|
| |
Performance
|
| |
Company-wide
Targets |
| ||||||
Sales Growth
|
| | | | 10% | | | |
Entry
|
| | | | 4,299.0 | | |
| | | | | | | | |
Target
|
| | | | 4,389.0 | | |
| | | | | | | | |
Max
|
| | | | 4,479.0 | | |
EBITDAR
|
| | | | 50% | | | |
Entry
|
| | | | 520.0 | | |
| | | | | | | | |
Target
|
| | | | 560.1 | | |
| | | | | | | | |
Max
|
| | | | 582.0 | | |
Controllable Cash
|
| | | | 20% | | | |
Entry
|
| | | | (110.8) | | |
| | | | | | | | |
Target
|
| | | | (95.8) | | |
| | | | | | | | |
Max
|
| | | | (80.9) | | |
SG&A
|
| | | | 20% | | | |
Entry
|
| | | | (1,039.0) | | |
| | | | | | | | |
Target
|
| | | | (1,029.4) | | |
| | | | | | | | |
Max
|
| | | | (1,014.0) | | |
Executive
|
| |
30% of Target Payment,
Paid in August 2019 |
| |||
R. Johnson
|
| | | $ | 285,000 | | |
D. Fallon
|
| | | $ | 172,500 | | |
J. Forcier
|
| | | $ | 110,071 | | |
J. Hewitt
|
| | | $ | 89,587 | | |
Executive
|
| |
2019 AIP Payout
|
| |||
R. Johnson
|
| | | $ | 1,092,500 | | |
D. Fallon
|
| | | $ | 661,250 | | |
S. Liang
|
| | | $ | 281,780 | | |
J. Forcier
|
| | | $ | 383,123 | | |
J. Hewitt
|
| | | $ | 343,102 | | |
Metric
|
| |
Weighting
|
| |
Performance
|
| |
Company- wide
Targets |
| ||||||
EBITDAR
|
| | | | 33.34% | | | |
Entry
|
| | | | 520.0 | | |
| | | | | | | | |
Target
|
| | | | 560.1 | | |
| | | | | | | | |
Max
|
| | | | 582.0 | | |
Controllable Cash
|
| | | | 33.33% | | | |
Entry
|
| | | | (110.8) | | |
| | | | | | | | |
Target
|
| | | | (95.8) | | |
| | | | | | | | |
Max
|
| | | | (80.9) | | |
SG&A
|
| | | | 33.33% | | | |
Entry
|
| | | | (1,039.0) | | |
| | | | | | | | |
Target
|
| | | | (1,029.4) | | |
| | | | | | | | |
Max
|
| | | | (1,014.0) | | |
Executive
|
| |
2019 T-Bonus
Payout |
| |||
R. Johnson
|
| | | $ | 1,216,000 | | |
D. Fallon
|
| | | $ | 736,000 | | |
J. Forcier
|
| | | $ | 586,696 | | |
J. Hewitt
|
| | | $ | 587,520 | | |
Metric
|
| |
Weighting
|
| |
Threshold
Performance |
| |
Target
Performance |
| |
Maximum
Performance |
| |
Actual
Performance |
| |
Payout (%)
|
| ||||||
Company EBITDAR
|
| | | | 50% | | | |
$548.6 million
|
| |
$609.6 million
|
| |
$629.2 million
|
| |
$502.4 million
|
| | | | 0% | | |
APAC EBITDAR
|
| | | | 50% | | | |
$140.1 million
|
| |
$155.0 million
|
| |
$165.0 million
|
| |
$174.1 million
|
| | | | 150% | | |
Payout as a Percent of
Target |
| | | | | | | | | | | | | | | | | | | | | | 75% | | |
Metric
|
| |
Weighting
|
| |
Threshold
Performance |
| |
Target
Performance |
| |
Maximum
Performance |
| |||
Company EBITDAR
|
| | | | 50% | | | |
$700.0 million
|
| |
$753.8 million
|
| |
$775.0 million
|
|
APAC EBITDAR
|
| | | | 50% | | | |
$155.0 million
|
| |
$175.0 million
|
| |
$185.0 million
|
|
Name
|
| |
Grant Date
|
| |
Vesting
Commencement Date |
| |
Number of
Units |
| |
Current
Per Unit Reduction Value |
| ||||||
Robert Johnson
|
| |
March 27, 2017
|
| |
January 1, 2017
|
| | | | 800,000 | | | | | $ | 7.76 | | |
David Fallon
|
| |
October 30, 2017
|
| |
July 31, 2017
|
| | | | 175,000 | | | | | $ | 7.76 | | |
Jason Forcier
|
| |
December 7, 2017
|
| |
October 2, 2017
|
| | | | 150,000 | | | | | $ | 7.76 | | |
John Hewitt
|
| |
December 7, 2017
|
| |
October 2, 2017
|
| | | | 100,000 | | | | | $ | 7.76 | | |
Stephen Liang
|
| |
June 15, 2017
|
| |
January 1, 2017
|
| | | | 100,000 | | | | | $ | 7.76 | | |
| | |
October 30, 2017
|
| |
January 1, 2017
|
| | | | 25,000 | | | | | $ | 7.76 | | |
Maturity Date
|
| |
Prior Year’s
Revenue Target ($) |
| |
Prior Year’s EBITDAR
Target(1) ($) |
| ||||||
First Anniversary of Vesting Commencement Date
|
| | | | 4,356,918,000 | | | | | | 594,683,000 | | |
Second Anniversary of Vesting Commencement Date
|
| | | | 4,435,782,000 | | | | | | 697,592,000 | | |
Third Anniversary of Vesting Commencement Date
|
| | | | 4,518,723,000 | | | | | | 753,837,000 | | |
Fourth Anniversary of Vesting Commencement Date
|
| | | | 4,624,542,000 | | | | | | 814,374,000 | | |
Fifth Anniversary of Vesting Commencement Date
|
| | | | 4,745,700,000 | | | | | | 834,222,000 | | |
Name
|
| |
Cancellation
Payment ($) |
| |||
Robert Johnson
|
| | | | 4,104,000 | | |
David Fallon
|
| | | | 1,047,750 | | |
Jason Forcier
|
| | | | 769,500 | | |
John Hewitt
|
| | | | 713,000 | | |
Stephen Liang
|
| | | | 741,250 | | |
Name
|
| |
Base
Salary ($) |
| |
Annual
Bonus Opportunity ($) |
| |
Restricted
Stock Units ($)(1) |
| |
Stock
Options ($)(2) |
| |
Total ($)
|
| |||||||||||||||
Robert Johnson
|
| | | | 950,000 | | | | | | 950,000 | | | | | | 8,000,000 | | | | | | 1,400,000 | | | | | | 11,300,000 | | |
David Fallon
|
| | | | 575,000 | | | | | | 575,000 | | | | | | 1,750,000 | | | | | | 860,000 | | | | | | 3,760,000 | | |
Jason Forcier
|
| | | | 500,000 | | | | | | 400,000 | | | | | | 1,400,000 | | | | | | 750,000 | | | | | | 3,050,000 | | |
John Hewitt
|
| | | | 468,000 | | | | | | 304,000 | | | | | | 1,400,000 | | | | | | 1,000,000 | | | | | | 3,172,000 | | |
Stephen Liang
|
| | | | 588,000 | | | | | | 247,000 | | | | | | 1,400,000 | | | | | | 600,000 | | | | | | 2,835,000 | | |
|
Applicable Severance Factor
|
| |
•
3x for Mr. Johnson
|
|
| | | |
•
2x for Messrs. Fallon, Forcier, Hewitt and Liang
|
|
|
COBRA Continuation Period
|
| | Reimbursement of COBRA continuation coverage costs for 18 months | |
|
Duration of Restrictive Covenants
|
| | 18 months | |
Name and Principal Position
|
| |
Year
|
| |
Salary ($)
|
| |
Bonus ($)
|
| |
Non-Equity
Incentive Plan Compensation ($)(1) |
| |
Change In
Pension And Nonqualified Deferred Compensation Earnings ($) |
| |
All Other
Compensation ($)(2) |
| |
Total ($)
|
| |||||||||||||||||||||
Robert Johnson
|
| | | | 2019 | | | | | | 950,000 | | | | | | — | | | | | | 2,308,500 | | | | | | — | | | | | | 37,144 | | | | | | 3,295,644 | | |
Chief Executive Officer
|
| | | | 2018 | | | | | | 901,923 | | | | | | 450,000 | | | | | | 192,000 | | | | | | — | | | | | | 20,580 | | | | | | 1,564,503 | | |
David Fallon
|
| | | | 2019 | | | | | | 575,000 | | | | | | — | | | | | | 1,397,250 | | | | | | — | | | | | | 40,307 | | | | | | 2,012,557 | | |
Chief Financial Officer
|
| | | | 2018 | | | | | | 502,885 | | | | | | 128,250 | | | | | | 48,000 | | | | | | — | | | | | | 18,752 | | | | | | 697,887 | | |
Stephen Liang(3)
|
| | | | 2019 | | | | | | 590,424 | | | | | | — | | | | | | 1,261,728 | | | | | | — | | | | | | 275,268 | | | | | | 2,127,420 | | |
President, Asia-Pacific
|
| | | | 2018 | | | | | | 557,004 | | | | | | — | | | | | | 149,688 | | | | | | — | | | | | | 622,970 | | | | | | 1,329,662 | | |
Jason Forcier
|
| | | | 2019 | | | | | | 455,769 | | | | | | — | | | | | | 969,819 | | | | | | — | | | | | | 11,003 | | | | | | 1,436,591 | | |
Chief Operations
Officer and Executive Vice President of Infrastructure and Solutions |
| | | | 2018 | | | | | | 400,000 | | | | | | 150,000 | | | | | | 48,000 | | | | | | — | | | | | | 9,023 | | | | | | 607,023 | | |
John Hewitt
|
| | | | 2019 | | | | | | 459,000 | | | | | | — | | | | | | 930,623 | | | | | | — | | | | | | 21,909 | | | | | | 1,411,532 | | |
President of Americas
|
| | | | 2018 | | | | | | 450,000 | | | | | | 90,000 | | | | | | 48,000 | | | | | | — | | | | | | 145,772 | | | | | | 733,772 | | |
| | | | | | | | | | | |
Estimated Possible Payouts Under
Non-Equity Incentive Plan Awards |
| |||||||||||||||
| | |
Plan
|
| |
Grant Date
|
| |
Threshold ($)
|
| |
Target($)
|
| |
Maximum ($)
|
| ||||||||||||
Robert Johnson
|
| |
Annual Incentive Plan
|
| | | | 1/1/2019(1) | | | | | | 285,000 | | | | | | 950,000 | | | | | | 1,425,000 | | |
| | |
Transformation Bonus Plan
|
| | | | 1/1/2019(2) | | | | | | 285,000 | | | | | | 950,000 | | | | | | 1,425,000 | | |
David Fallon
|
| |
Annual Incentive Plan
|
| | | | 1/1/2019(1) | | | | | | 172,500 | | | | | | 575,000 | | | | | | 862,500 | | |
| | |
Transformation Bonus Plan
|
| | | | 1/1/2019(2) | | | | | | 172,500 | | | | | | 575,000 | | | | | | 862,500 | | |
Jason Forcier
|
| |
Annual Incentive Plan
|
| | | | 1/1/2019(1) | | | | | | 99,945 | | | | | | 333,150 | | | | | | 499,725 | | |
| | |
Transformation Bonus Plan
|
| | | | 1/1/2019(2) | | | | | | 136,731 | | | | | | 455,769 | | | | | | 683,654 | | |
John Hewitt
|
| |
Annual Incentive Plan
|
| | | | 1/1/2019(1) | | | | | | 91,260 | | | | | | 304,200 | | | | | | 456,300 | | |
| | |
Transformation Bonus Plan
|
| | | | 1/1/2019(2) | | | | | | 137,700 | | | | | | 459,000 | | | | | | 688,500 | | |
Stephen Liang
|
| |
Annual Incentive Plan
|
| | | | 1/1/2019(1) | | | | | | 69,300 | | | | | | 231,000 | | | | | | 346,500 | | |
| | |
2017 Senior Executive Medium-Term
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
Incentive and Retention Agreement
|
| | | | 1/1/2019(3) | | | | | | 240,000 | | | | | | 800,000 | | | | | | 1,200,000 | | |
Name
|
| |
Reason for
termination |
| |
Cash
payment ($) |
| |||
Robert Johnson
|
| | Without Cause | | | | | 1,900,000(1) | | |
| | | Good Reason | | | | | 1,900,000(1) | | |
| | | Death or Disability | | | | | 950,000(2) | | |
David Fallon
|
| | Without Cause | | | | | 575,000(3) | | |
| | | Good Reason | | | | | — | | |
| | |
Death or Disability(3)
|
| | | | — | | |
Jason Forcier
|
| | Without Cause | | | | | 900,000(4) | | |
| | | Good Reason | | | | | — | | |
| | | Death or Disability | | | | | — | | |
John Hewitt
|
| | Without Cause | | | | | 468,000(3) | | |
| | | Good Reason | | | | | — | | |
| | | Death or Disability | | | | | — | | |
Stephen Liang
|
| | Without Cause | | | | | 335,212(5) | | |
| | | Good Reason | | | | | 335,212(5) | | |
| | | Death or Disability | | | | | 335,212(5) | | |
Salary Levels
|
| |
Guidelines
|
|
•
Chief Executive Officer
|
| |
5 times Salary
|
|
•
Chief Financial Officer and other “named executive officers” (as defined in Item 402(a)(3) of Regulation S-K
|
| |
3 times Salary
|
|
•
All other Section 16 officers
|
| |
2 times Salary
|
|
Name
|
| |
Age
|
| |
Position
|
|
David M. Cote | | |
68
|
| | Executive Chairman of the Board | |
Rob Johnson | | |
54
|
| | Chief Executive Officer and Director | |
Joseph van Dokkum | | |
67
|
| | Director | |
Roger Fradin | | |
67
|
| | Director | |
Jacob Kotzubei | | |
51
|
| | Director | |
Matthew Louie | | |
43
|
| | Director | |
Edward L. Monser | | |
70
|
| | Director | |
Steven S. Reinemund | | |
72
|
| | Director | |
Robin L. Washington | | |
58
|
| | Director | |
David J. Fallon | | |
50
|
| | Chief Financial Officer and Corporate Secretary | |
Scott A. Cripps | | |
42
|
| | Chief Accounting Officer | |
Giordano Albertazzi | | |
54
|
| | President of Europe, Middle East and Africa | |
Andrew Cole | | |
55
|
| | Chief Organizational Development and Human Resources Officer | |
Jason M. Forcier | | |
48
|
| | Chief Operations Officer and Executive Vice President of Infrastructure and Solutions | |
Sheryl Haislet | | |
55
|
| | Chief Information Officer | |
John Hewitt | | |
51
|
| | President of the Americas | |
Patrick Johnson | | |
49
|
| | Executive Vice President of Information Technology and Edge Infrastructure | |
Stephen Liang | | |
61
|
| | Chief Technology Officer and President of Asia Pacific | |
Gary Niederpruem | | |
46
|
| | Chief Strategy and Development Officer | |
Redemption Date (period to expiration of
warrants) |
| |
Fair Market Value of Class A Common Stock
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||
|
$10.00
|
| |
$11.00
|
| |
$12.00
|
| |
$13.00
|
| |
$14.00
|
| |
$15.00
|
| |
$16.00
|
| |
$17.00
|
| |
$18.00
|
| |||||||||||||||||||||||||||||
57 months
|
| | | | 0.257 | | | | | | 0.277 | | | | | | 0.294 | | | | | | 0.310 | | | | | | 0.324 | | | | | | 0.337 | | | | | | 0.348 | | | | | | 0.358 | | | | | | 0.365 | | |
54 months
|
| | | | 0.252 | | | | | | 0.272 | | | | | | 0.291 | | | | | | 0.307 | | | | | | 0.322 | | | | | | 0.335 | | | | | | 0.347 | | | | | | 0.357 | | | | | | 0.365 | | |
51 months
|
| | | | 0.246 | | | | | | 0.268 | | | | | | 0.287 | | | | | | 0.304 | | | | | | 0.320 | | | | | | 0.333 | | | | | | 0.346 | | | | | | 0.357 | | | | | | 0.365 | | |
48 months
|
| | | | 0.241 | | | | | | 0.263 | | | | | | 0.283 | | | | | | 0.301 | | | | | | 0.317 | | | | | | 0.332 | | | | | | 0.344 | | | | | | 0.356 | | | | | | 0.365 | | |
45 months
|
| | | | 0.235 | | | | | | 0.258 | | | | | | 0.279 | | | | | | 0.298 | | | | | | 0.315 | | | | | | 0.330 | | | | | | 0.343 | | | | | | 0.356 | | | | | | 0.365 | | |
42 months
|
| | | | 0.228 | | | | | | 0.252 | | | | | | 0.274 | | | | | | 0.294 | | | | | | 0.312 | | | | | | 0.328 | | | | | | 0.342 | | | | | | 0.355 | | | | | | 0.364 | | |
39 months
|
| | | | 0.221 | | | | | | 0.246 | | | | | | 0.269 | | | | | | 0.290 | | | | | | 0.309 | | | | | | 0.325 | | | | | | 0.340 | | | | | | 0.354 | | | | | | 0.364 | | |
36 months
|
| | | | 0.213 | | | | | | 0.239 | | | | | | 0.263 | | | | | | 0.285 | | | | | | 0.305 | | | | | | 0.323 | | | | | | 0.339 | | | | | | 0.353 | | | | | | 0.364 | | |
33 months
|
| | | | 0.205 | | | | | | 0.232 | | | | | | 0.257 | | | | | | 0.280 | | | | | | 0.301 | | | | | | 0.320 | | | | | | 0.337 | | | | | | 0.352 | | | | | | 0.364 | | |
30 months
|
| | | | 0.196 | | | | | | 0.224 | | | | | | 0.250 | | | | | | 0.274 | | | | | | 0.297 | | | | | | 0.316 | | | | | | 0.335 | | | | | | 0.351 | | | | | | 0.364 | | |
27 months
|
| | | | 0.185 | | | | | | 0.214 | | | | | | 0.242 | | | | | | 0.268 | | | | | | 0.291 | | | | | | 0.313 | | | | | | 0.332 | | | | | | 0.350 | | | | | | 0.364 | | |
24 months
|
| | | | 0.173 | | | | | | 0.204 | | | | | | 0.233 | | | | | | 0.260 | | | | | | 0.285 | | | | | | 0.308 | | | | | | 0.329 | | | | | | 0.348 | | | | | | 0.364 | | |
21 months
|
| | | | 0.161 | | | | | | 0.193 | | | | | | 0.223 | | | | | | 0.252 | | | | | | 0.279 | | | | | | 0.304 | | | | | | 0.326 | | | | | | 0.347 | | | | | | 0.364 | | |
18 months
|
| | | | 0.146 | | | | | | 0.179 | | | | | | 0.211 | | | | | | 0.242 | | | | | | 0.271 | | | | | | 0.298 | | | | | | 0.322 | | | | | | 0.345 | | | | | | 0.363 | | |
15 months
|
| | | | 0.130 | | | | | | 0.164 | | | | | | 0.197 | | | | | | 0.230 | | | | | | 0.262 | | | | | | 0.291 | | | | | | 0.317 | | | | | | 0.342 | | | | | | 0.363 | | |
12 months
|
| | | | 0.111 | | | | | | 0.146 | | | | | | 0.181 | | | | | | 0.216 | | | | | | 0.250 | | | | | | 0.282 | | | | | | 0.312 | | | | | | 0.339 | | | | | | 0.363 | | |
9 months
|
| | | | 0.090 | | | | | | 0.125 | | | | | | 0.162 | | | | | | 0.199 | | | | | | 0.237 | | | | | | 0.272 | | | | | | 0.305 | | | | | | 0.336 | | | | | | 0.362 | | |
6 months
|
| | | | 0.065 | | | | | | 0.099 | | | | | | 0.137 | | | | | | 0.178 | | | | | | 0.219 | | | | | | 0.259 | | | | | | 0.296 | | | | | | 0.331 | | | | | | 0.362 | | |
3 months
|
| | | | 0.034 | | | | | | 0.065 | | | | | | 0.104 | | | | | | 0.150 | | | | | | 0.197 | | | | | | 0.243 | | | | | | 0.286 | | | | | | 0.326 | | | | | | 0.361 | | |
0 months
|
| | | | — | | | | | | — | | | | | | 0.042 | | | | | | 0.115 | | | | | | 0.179 | | | | | | 0.233 | | | | | | 0.281 | | | | | | 0.323 | | | | | | 0.361 | | |
Name and Address of Beneficial Owners(1)
|
| |
Number of Shares
|
| |
Ownership
Percentage (%) |
| ||||||
5% Holders (Other than Directors and Executive Officers) | | | | | | | | | | | | | |
VPE Holdings, LLC (the Vertiv Stockholder)(2)
|
| | | | 95,261,955 | | | | | | 29.0% | | |
Directors and Executive Officers | | | | | | | | | | | | | |
David M. Cote(3)
|
| | | | 15,901,425 | | | | | | 4.84% | | |
Rob Johnson
|
| | | | 123,120 | | | | | | * | | |
Roger Fradin(4)
|
| | | | 368,333 | | | | | | * | | |
Joseph van Dokkum(5)
|
| | | | 25,000 | | | | | | * | | |
Jacob Kotzubei
|
| | | | — | | | | | | — | | |
Matthew Louie
|
| | | | — | | | | | | — | | |
Edward L. Monser
|
| | | | 44,000 | | | | | | * | | |
Steven S. Reinemund(6)
|
| | | | 368,333 | | | | | | * | | |
Robin L. Washington(7)
|
| | | | 10,000 | | | | | | * | | |
Giordano Albertazzi
|
| | | | 26,859 | | | | | | * | | |
Andrew Cole
|
| | | | 35,650 | | | | | | * | | |
David J. Fallon
|
| | | | 52,387 | | | | | | * | | |
Scott A. Cripps
|
| | | | — | | | | | | — | | |
Jason M. Forcier
|
| | | | 38,475 | | | | | | * | | |
Sheryl Haislet
|
| | | | — | | | | | | — | | |
John Hewitt
|
| | | | 35,650 | | | | | | * | | |
Patrick Johnson
|
| | | | 31,802 | | | | | | * | | |
Steve Lalla
|
| | | | 25,650 | | | | | | * | | |
Stephen Liang
|
| | | | 37,062 | | | | | | * | | |
Gary Niederpruem
|
| | | | 24,618 | | | | | | * | | |
All directors and executive officers as a group (19 individuals)(8)
|
| | | | 17,199,381 | | | | | | 5.24% | | |
| | |
Beneficial Ownership
Before the Offering |
| |
Shares to be Sold
in the Offering |
| |
Beneficial Ownership
After the Offering |
| |||||||||||||||||||||||||||
Name of Selling Holder
|
| |
Number of
Shares |
| |
%(1)
|
| |
Number of
Shares |
| |
%(1)
|
| |
Number of
Shares |
| |
%
|
| ||||||||||||||||||
VPE Holdings, LLC(2)
|
| | | | 118,261,955 | | | | | | 36.01% | | | | | | 118,261,955 | | | | | | 36.01% | | | | | | 0 | | | | | | 0% | | |
Abu Dhabi Investment Authority(3)
|
| | | | 15,000,000 | | | | | | 4.57% | | | | | | 15,000,000 | | | | | | 4.57% | | | | | | 0 | | | | | | 0% | | |
Eminence Capital, LP(4)
|
| | | | 16,500,000 | | | | | | 5.02% | | | | | | 16,500,000 | | | | | | 5.02% | | | | | | 0 | | | | | | 0% | | |
Alyeska Investment Group, L.P.(5)
|
| | | | 18,435,366 | | | | | | 5.60% | | | | | | 15,000,000 | | | | | | 4.56% | | | | | | 3,435,366 | | | | | | 1.04% | | |
Nomura Global Financial
Products Inc.(6) |
| | | | 10,800,000 | | | | | | 3.29% | | | | | | 5,400,000 | | | | | | 1.64% | | | | | | 0 | | | | | | 0% | | |
Cote SPAC 1 LLC(7)
|
| | | | 13,839,167 | | | | | | 4.15% | | | | | | 13,839,167 | | | | | | 4.15% | | | | | | 0 | | | | | | 0% | | |
GS Sponsor LLC(8)
|
| | | | 13,839,166 | | | | | | 4.15% | | | | | | 13,839,166 | | | | | | 4.15% | | | | | | 0 | | | | | | 0% | | |
GSAH Investors Emp LP(9)
|
| | | | 7,459,000 | | | | | | 2.27% | | | | | | 7,459,000 | | | | | | 2.27% | | | | | | 0 | | | | | | 0% | | |
BlackRock, Inc.(10)
|
| | | | 10,800,000 | | | | | | 3.29% | | | | | | 10,800,000 | | | | | | 3.29% | | | | | | 0 | | | | | | 0% | | |
Aranda Investments Pte. Ltd.(11)
|
| | | | 5,000,000 | | | | | | 1.52% | | | | | | 5,000,000 | | | | | | 1.52% | | | | | | 0 | | | | | | 0% | | |
Investment Corporation of Dubai(12)
|
| | | | 5,000,000 | | | | | | 1.52% | | | | | | 5,000,000 | | | | | | 1.52% | | | | | | 0 | | | | | | 0% | | |
Adage Capital Partners, LP(13)
|
| | | | 1,385,000 | | | | | | * | | | | | | 1,385,000 | | | | | | * | | | | | | 0 | | | | | | 0% | | |
FMR LLC(14)
|
| | | | 11,456,603 | | | | | | 3.49% | | | | | | 11,456,603 | | | | | | 3.49% | | | | | | 0 | | | | | | 0% | | |
Baron Small Cap Fund(15)
|
| | | | 6,000,000 | | | | | | 1.83% | | | | | | 4,000,000 | | | | | | 1.22% | | | | | | 2,000,000 | | | | | | * | | |
Tradeinvest Asset Management Company
(BVI) Ltd.(16) |
| | | | 2,910,580 | | | | | | * | | | | | | 2,910,580 | | | | | | * | | | | | | 0 | | | | | | 0% | | |
Sculptor Capital Management, Inc.(17)
|
| | | | 2,500,000 | | | | | | * | | | | | | 2,500,000 | | | | | | * | | | | | | 0 | | | | | | 0% | | |
Atlanta Sons LLC(18)
|
| | | | 2,000,000 | | | | | | * | | | | | | 2,000,000 | | | | | | * | | | | | | 0 | | | | | | 0% | | |
Integrated Core Strategies (US)
LLC(19) |
| | | | 5,270,514 | | | | | | 1.60% | | | | | | 1,894,299 | | | | | | * | | | | | | 3,376,215 | | | | | | 1.02% | | |
Hudson Bay Master Fund Ltd(20)
|
| | | | 2,029,303 | | | | | | * | | | | | | 1,695,970 | | | | | | * | | | | | | 333,333 | | | | | | * | | |
Brookside Capital Trading
Fund, L.P.(21) |
| | | | 902,097 | | | | | | * | | | | | | 568,764 | | | | | | * | | | | | | 333,333 | | | | | | * | | |
Beckensfield Limited(22)
|
| | | | 1,157,281 | | | | | | * | | | | | | 1,157,281 | | | | | | * | | | | | | 0 | | | | | | 0% | | |
Waterbeck Group Limited(23)
|
| | | | 1,157,281 | | | | | | * | | | | | | 1,157,281 | | | | | | * | | | | | | 0 | | | | | | 0% | | |
Steven S Reinemund(24)
|
| | | | 368,333 | | | | | | * | | | | | | 368,333 | | | | | | * | | | | | | 0 | | | | | | 0% | | |
Roger Fradin(25)
|
| | | | 368,333 | | | | | | * | | | | | | 368,333 | | | | | | * | | | | | | 0 | | | | | | 0% | | |
James Albaugh(26)
|
| | | | 111,666 | | | | | | * | | | | | | 111,666 | | | | | | * | | | | | | 0 | | | | | | 0% | | |
Joseph van Dokkum(27)
|
| | | | 25,000 | | | | | | * | | | | | | 25,000 | | | | | | * | | | | | | 0 | | | | | | 0% | | |
Robin Washington(28)
|
| | | | 10,000 | | | | | | * | | | | | | 10,000 | | | | | | * | | | | | | 0 | | | | | | 0% | | |
Giordano Albertazzi
|
| | | | 26,859 | | | | | | * | | | | | | 26,859 | | | | | | * | | | | | | 0 | | | | | | 0% | | |
Andrew Cole
|
| | | | 35,650 | | | | | | * | | | | | | 35,650 | | | | | | * | | | | | | 0 | | | | | | 0% | | |
David J. Fallon
|
| | | | 52,387 | | | | | | * | | | | | | 52,387 | | | | | | * | | | | | | 0 | | | | | | 0% | | |
Colin Flannery
|
| | | | 17,825 | | | | | | * | | | | | | 17,825 | | | | | | * | | | | | | 0 | | | | | | 0% | | |
Jason M. Forcier
|
| | | | 38,475 | | | | | | * | | | | | | 38,475 | | | | | | * | | | | | | 0 | | | | | | 0% | | |
John Hewitt
|
| | | | 35,650 | | | | | | * | | | | | | 35,650 | | | | | | * | | | | | | 0 | | | | | | 0% | | |
Patrick Johnson
|
| | | | 31,802 | | | | | | * | | | | | | 31,802 | | | | | | * | | | | | | 0 | | | | | | 0% | | |
Steve Lalla
|
| | | | 25,650 | | | | | | * | | | | | | 25,650 | | | | | | * | | | | | | 0 | | | | | | 0% | | |
Stephen Liang
|
| | | | 37,062 | | | | | | * | | | | | | 37,062 | | | | | | * | | | | | | 0 | | | | | | 0% | | |
Gary Niederpruem
|
| | | | 24,618 | | | | | | * | | | | | | 24,618 | | | | | | * | | | | | | 0 | | | | | | 0% | | |
Additional Selling Holders(29)
|
| | | | 1,515,000 | | | | | | * | | | | | | 1,515,000 | | | | | | * | | | | | | 0 | | | | | | 0% | | |
| | |
Beneficial Ownership
Before the Offering |
| |
Shares to be Sold
in the Offering |
| |
Beneficial Ownership
After the Offering |
| |||||||||||||||||||||||||||
Name of Selling Holder
|
| |
Number of
Warrants |
| |
%(1)
|
| |
Number of
Warrants |
| |
%(1)
|
| |
Number of
Warrants |
| |
%
|
| ||||||||||||||||||
GS Sponsor LLC(2)
|
| | | | 5,266,666 | | | | | | 15.71% | | | | | | 5,266,666 | | | | | | 15.71% | | | | | | 0 | | | | | | 0% | | |
Cote SPAC 1 LLC(3)
|
| | | | 5,266,667 | | | | | | 15.71% | | | | | | 5,266,667 | | | | | | 15.71% | | | | | | 0 | | | | | | 0% | | |
Roger Fradin(4)
|
| | | | 33,333 | | | | | | * | | | | | | 33,333 | | | | | | * | | | | | | 0 | | | | | | 0% | | |
Steven S. Reinemund(5)
|
| | | | 33,333 | | | | | | * | | | | | | 33,333 | | | | | | * | | | | | | 0 | | | | | | 0% | | |
James Albaugh(6)
|
| | | | 6,666 | | | | | | * | | | | | | 6,666 | | | | | | * | | | | | | 0 | | | | | | 0% | | |
| | |
Beneficial Ownership
Before the Offering |
| |
Shares to be Sold
in the Offering |
| |
Beneficial Ownership
After the Offering |
| |||||||||||||||||||||||||||
Name of Selling Holder
|
| |
Number of
Units |
| |
%(1)
|
| |
Number of
Units |
| |
%(1)
|
| |
Number of
Units |
| |
%
|
| ||||||||||||||||||
Roger Fradin
|
| | | | 100,000 | | | | | | 2.42% | | | | | | 100,000 | | | | | | 2.42% | | | | | | 0 | | | | | | 0% | | |
Steven S. Reinemund(2)
|
| | | | 100,000 | | | | | | 2.42% | | | | | | 100,000 | | | | | | 2.42% | | | | | | 0 | | | | | | 0% | | |
James Albaugh
|
| | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | | 0 | | | | | | 0% | | |
| Unaudited condensed consolidated financial statements of Vertiv Holdings Co | | | | | | | |
| | | | | F-2 | | | |
| | | | | F-3 | | | |
| | | | | F-4 | | | |
| | | | | F-5 | | | |
| | | | | F-6 | | | |
| | | | | F-7 | | |
| Audited consolidated financial statements of Vertiv Holdings, LLC | | | | | | | |
| | | | | F-29 | | | |
| | | | | F-30 | | | |
| | | | | F-31 | | | |
| | | | | F-32 | | | |
| | | | | F-33 | | | |
| | | | | F-34 | | | |
| | | | | F-35 | | |
| | ||||||||||||
| | |
Nine months ended
September 30, 2020 |
| |
Nine months ended
September 30, 2019 |
| ||||||
Net sales: | | | | | | | | | | | | | |
Net sales – products
|
| | | $ | 2,288.5 | | | | | $ | 2,478.0 | | |
Net sales – services
|
| | | | 776.4 | | | | | | 781.7 | | |
Net sales
|
| | | | 3,064.9 | | | | | | 3,259.7 | | |
Costs and expenses: | | | | | | | | | | | | | |
Cost of sales – products
|
| | | | 1,575.3 | | | | | | 1,741.3 | | |
Cost of sales – services
|
| | | | 443.3 | | | | | | 452.6 | | |
Cost of sales
|
| | | | 2,018.6 | | | | | | 2,193.9 | | |
Selling, general and administrative expenses
|
| | | | 742.9 | | | | | | 809.0 | | |
Loss on extinguishment of debt
|
| | | | 174.0 | | | | | | — | | |
Other deductions, net
|
| | | | 210.0 | | | | | | 98.6 | | |
Interest expense, net
|
| | | | 125.4 | | | | | | 234.2 | | |
Income (loss) before income taxes
|
| | | | (206.0) | | | | | | (76.0) | | |
Income tax expense (benefit)
|
| | | | 52.5 | | | | | | 30.9 | | |
Net loss
|
| | | $ | (258.5) | | | | | $ | (106.9) | | |
Earnings (loss) per share: | | | | | | | | | | | | | |
Basic and diluted
|
| | | $ | (0.86) | | | | | $ | (0.90) | | |
Weighted-average shares outstanding: | | | | | | | | | | | | | |
Basic and diluted
|
| | | | 299,266,849 | | | | | | 118,261,955 | | |
| | ||||||||||||
| | |
Nine months ended
September 30, 2020 |
| |
Nine months ended
September 30, 2019 |
| ||||||
Net loss
|
| | | $ | (258.5) | | | | | $ | (106.9) | | |
Other comprehensive income (loss), net of tax: | | | | | | | | | | | | | |
Foreign currency translation
|
| | | | 3.7 | | | | | | (49.0) | | |
Interest rate swaps
|
| | | | (37.8) | | | | | | — | | |
Tax receivable agreement
|
| | | | 5.1 | | | | | | — | | |
Pension
|
| | | | (0.2) | | | | | | — | | |
Comprehensive income (loss)
|
| | | $ | (287.7) | | | | | $ | (155.9) | | |
| | ||||||||||||
| | |
September 30, 2020
|
| |
December 31, 2019
|
| ||||||
ASSETS | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 324.3 | | | | | $ | 223.5 | | |
Accounts receivable, less allowances of $26.0 and $19.9, respectively
|
| | | | 1,288.7 | | | | | | 1,212.2 | | |
Inventories
|
| | | | 465.5 | | | | | | 401.0 | | |
Other current assets
|
| | | | 172.6 | | | | | | 180.7 | | |
Total current assets
|
| | | | 2,251.1 | | | | | | 2,017.4 | | |
Property, plant and equipment, net
|
| | | | 406.9 | | | | | | 428.2 | | |
Other assets: | | | | | | | | | | | | | |
Goodwill
|
| | | | 611.7 | | | | | | 605.8 | | |
Other intangible assets, net
|
| | | | 1,311.7 | | | | | | 1,441.6 | | |
Deferred income taxes
|
| | | | 13.9 | | | | | | 9.0 | | |
Other
|
| | | | 176.4 | | | | | | 155.4 | | |
Total other assets
|
| | | | 2,113.7 | | | | | | 2,211.8 | | |
Total assets
|
| | | $ | 4,771.7 | | | | | $ | 4,657.4 | | |
LIABILITIES AND EQUITY | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Current portion of long-term debt and short-term borrowings
|
| | | $ | 41.1 | | | | | $ | — | | |
Accounts payable
|
| | | | 655.8 | | | | | | 636.8 | | |
Accrued expenses and other liabilities
|
| | | | 876.8 | | | | | | 867.7 | | |
Income taxes
|
| | | | 27.9 | | | | | | 15.2 | | |
Total current liabilities
|
| | | | 1,601.6 | | | | | | 1,519.7 | | |
Long-term debt, net
|
| | | | 2,234.8 | | | | | | 3,467.3 | | |
Deferred income taxes
|
| | | | 116.8 | | | | | | 124.7 | | |
Other long-term liabilities
|
| | | | 446.8 | | | | | | 250.5 | | |
Total liabilities
|
| | | | 4,400.0 | | | | | | 5,362.2 | | |
Equity | | | | | | | | | | | | | |
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, none issued and outstanding
|
| | | | — | | | | | | — | | |
Common stock, $0.0001 par value, 700,000,000 shares authorized, 328,411,705 and 118,261,955 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively
|
| | | | — | | | | | | — | | |
Additional paid-in capital
|
| | | | 1,641.9 | | | | | | 277.7 | | |
Accumulated deficit
|
| | | | (1,259.1) | | | | | | (1,000.6) | | |
Accumulated other comprehensive (loss) income
|
| | | | (11.1) | | | | | | 18.1 | | |
Total equity (deficit)
|
| | | | 371.7 | | | | | | (704.8) | | |
Total liabilities and equity
|
| | | $ | 4,771.7 | | | | | $ | 4,657.4 | | |
| | ||||||||||||
| | |
Nine months ended
September 30, 2020 |
| |
Nine months ended
September 30, 2019 |
| ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (258.5) | | | | | $ | (106.9) | | |
Adjustments to reconcile net loss to net cash used for operating activities:
|
| | | | | | | | | | | | |
Depreciation
|
| | | | 42.9 | | | | | | 42.7 | | |
Amortization
|
| | | | 107.8 | | | | | | 109.2 | | |
Deferred income taxes
|
| | | | (7.7) | | | | | | (8.3) | | |
Amortization of debt discount and issuance costs
|
| | | | 9.0 | | | | | | 21.2 | | |
Loss on extinguishment of debt
|
| | | | 174.0 | | | | | | — | | |
Asset impairment
|
| | | | 21.7 | | | | | | — | | |
Changes in operating working capital
|
| | | | (102.1) | | | | | | (104.2) | | |
Other
|
| | | | 27.3 | | | | | | (11.8) | | |
Net cash provided by (used for) operating activities
|
| | | | 14.4 | | | | | | (58.1) | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Capital expenditures
|
| | | | (21.3) | | | | | | (27.9) | | |
Investments in capitalized software
|
| | | | (4.9) | | | | | | (15.5) | | |
Proceeds from disposition of property, plant and equipment
|
| | | | — | | | | | | 5.0 | | |
Net cash used for investing activities
|
| | | | (26.2) | | | | | | (38.4) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Borrowings from ABL revolving credit facility
|
| | | | 324.2 | | | | | | 381.8 | | |
Repayments of ABL revolving credit facility
|
| | | | (370.5) | | | | | | (462.2) | | |
Proceeds from short-term borrowings
|
| | | | 22.0 | | | | | | — | | |
Repayment of short-term borrowings
|
| | | | (3.8) | | | | | | — | | |
Proceeds from the issuance of 10.00% Notes
|
| | | | — | | | | | | 114.2 | | |
Borrowing on Term Loan, net of discount
|
| | | | 2,189.0 | | | | | | — | | |
Repayment on Term Loan
|
| | | | (11.0) | | | | | | — | | |
Repayment on Prior Term Loan
|
| | | | (2,070.0) | | | | | | — | | |
Repayment of Prior Notes
|
| | | | (1,370.0) | | | | | | — | | |
Payment of redemption premiums
|
| | | | (75.0) | | | | | | — | | |
Payment of debt issuance costs
|
| | | | (11.2) | | | | | | — | | |
Proceeds from reverse recapitalization, net
|
| | | | 1,832.5 | | | | | | — | | |
Payment to Vertiv Stockholder
|
| | | | (341.6) | | | | |
|
—
|
| |
Other financing
|
| | | | (2.3) | | | | |
|
—
|
| |
Net cash provided by financing activities
|
| | | | 112.3 | | | | | | 33.8 | | |
Effect of exchange rate changes on cash and cash equivalents
|
| | | | (1.9) | | | | | | (3.1) | | |
Increase (decrease) in cash, cash equivalents and restricted cash
|
| | | | 98.6 | | | | | | (65.8) | | |
Beginning cash, cash equivalents and restricted cash
|
| | | | 233.7 | | | | | | 225.3 | | |
Ending cash, cash equivalents and restricted cash
|
| | | $ | 332.3 | | | | | $ | 159.5 | | |
Changes in operating working capital | | | | | | | | | | | | | |
Accounts receivable
|
| | | $ | (76.5) | | | | | $ | 42.4 | | |
Inventories
|
| | | | (64.5) | | | | | | 43.2 | | |
Other current assets
|
| | | | 8.0 | | | | | | (32.3) | | |
Accounts payable
|
| | | | 20.8 | | | | | | (161.4) | | |
Accrued expenses and other liabilities
|
| | | | (2.8) | | | | | | (1.2) | | |
Income taxes
|
| | | | 12.9 | | | | | | 5.1 | | |
Total changes in operating working capital
|
| | | $ | (102.1) | | | | | $ | (104.2) | | |
| | ||||||||||||||||||||||||||||||||||||
| | |
Share Capital
|
| |
Additional
Paid in Capital |
| |
Accumulated
Deficit |
| |
Accumulated Other
Comprehensive Income (Loss) |
| | |||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Total
|
| |||||||||||||||||||||||||||
Balance at December 31, 2018, as originally reported
|
| | | | 1,000,000 | | | | | $ | — | | | | | $ | 277.7 | | | | | $ | (859.8) | | | | | $ | 41.8 | | | | | $ | (540.3) | | |
Conversion of units of share capital
|
| | | | 117,261,955 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Balance at December 31, 2018, as recasted(1)
|
| | | | 118,261,955 | | | | | | — | | | | | | 277.7 | | | | | | (859.8) | | | | | | 41.8 | | | | | | (540.3) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (74.3) | | | | | | — | | | | | | (74.3) | | |
Other comprehensive income, net of tax
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 6.7 | | | | | | 6.7 | | |
Balance as of March 31, 2019, as recasted(1)
|
| | | | 118,261,955 | | | | | $ | — | | | | | $ | 277.7 | | | | | $ | (934.1) | | | | | $ | 48.5 | | | | | $ | (607.9) | | |
Balance as of March 31, 2019, as originally reported
|
| | | | 1,000,000 | | | | | | — | | | | | $ | 277.7 | | | | | $ | (934.1) | | | | | $ | 48.5 | | | | | $ | (607.9) | | |
Conversion of units of share capital
|
| | | | 117,261,955 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Balance as of March 31, 2019, as recasted(1)
|
| | | | 118,261,955 | | | | | | — | | | | | | 277.7 | | | | | | (934.1) | | | | | | 48.5 | | | | | | (607.9) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (18.9) | | | | | | — | | | | | | (18.9) | | |
Other comprehensive loss, net of tax
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (11.4) | | | | | | (11.4) | | |
Balance as of June 30, 2019, as recasted(1)
|
| | | | 118,261,955 | | | | | | — | | | | | $ | 277.7 | | | | | $ | (953.0) | | | | | $ | 37.1 | | | | | $ | (638.2) | | |
Balance as of June 30, 2019, as originally reported
|
| | | | 1,000,000 | | | | | | — | | | | | $ | 277.7 | | | | | $ | (953.0) | | | | | $ | 37.1 | | | | | $ | (638.2) | | |
Conversion of units of share capital
|
| | | | 117,261,955 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Balance as of June 30, 2019, as recasted(1)
|
| | | | 118,261,955 | | | | | | — | | | | | | 277.7 | | | | | | (953.0) | | | | | | 37.1 | | | | | | (638.2) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (13.7) | | | | | | — | | | | | | (13.7) | | |
Other comprehensive loss, net of tax
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (44.3) | | | | | | (44.3) | | |
Balance as of September 30, 2019, as recasted(1)
|
| | | | 118,261,955 | | | | | | — | | | | | $ | 277.7 | | | | | $ | (966.7) | | | | | $ | (7.2) | | | | | $ | (696.2) | | |
Balance at December 31, 2019, as originally reported
|
| | | | 1,000,000 | | | | | $ | — | | | | | $ | 277.7 | | | | | $ | (1,000.6) | | | | | $ | 18.1 | | | | | $ | (704.8) | | |
Conversion of units of share capital
|
| | | | 117,261,955 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Balance at December 31, 2019, as recasted(1)
|
| | | | 118,261,955 | | | | | | — | | | | | | 277.7 | | | | | | (1,000.6) | | | | | | 18.1 | | | | | | (704.8) | | |
Tax Receivable Agreement
|
| | | | — | | | | | | — | | | | | | (133.4) | | | | | | — | | | | | | — | | | | | | (133.4) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (268.9) | | | | | | — | | | | | | (268.9) | | |
Stock issuance
|
| | | | 123,900,000 | | | | | | — | | | | | | 1,195.1 | | | | | | — | | | | | | — | | | | | | 1,195.1 | | |
Merger recapitalization
|
| | | | 86,249,750 | | | | | | — | | | | | | 295.8 | | | | | | — | | | | | | — | | | | | | 295.8 | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | 0.7 | | | | | | — | | | | | | — | | | | | | 0.7 | | |
Other comprehensive loss, net of tax
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (52.6) | | | | | | (52.6) | | |
Balance at March 31, 2020
|
| | | | 328,411,705 | | | | | $ | — | | | | | $ | 1,635.9 | | | | | $ | (1,269.5) | | | | | $ | (34.5) | | | | | $ | 331.9 | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | 26.2 | | | | | | — | | | | | | 26.2 | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | 2.5 | | | | | | — | | | | | | — | | | | | | 2.5 | | |
Other merger adjustment
|
| | | | — | | | | | | — | | | | | | (0.4) | | | | | | — | | | | | | — | | | | | | (0.4) | | |
Other comprehensive loss, net of tax
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (9.3) | | | | | | (9.3) | | |
Balance at June 30, 2020
|
| | | | 328,411,705 | | | | | $ | — | | | | | $ | 1,638.0 | | | | | $ | (1,243.3) | | | | | $ | (43.8) | | | | | $ | 350.9 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (15.8) | | | | | | — | | | | | | (15.8) | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | 3.9 | | | | | | — | | | | | | — | | | | | | 3.9 | | |
Other comprehensive income, net of tax
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 32.7 | | | | | | 32.7 | | |
Balance at September 30, 2020
|
| | | | 328,411,705 | | | | | $ | — | | | | | $ | 1,641.9 | | | | | $ | (1,259.1) | | | | | $ | (11.1) | | | | | $ | 371.7 | | |
| | |
Nine months ended September 30, 2020
|
| |||||||||||||||||||||
| | |
Americas
|
| |
Asia Pacific
|
| |
Europe, Middle East, &
Africa |
| |
Total
|
| ||||||||||||
Sales by Product and Service Offering: | | | | | | | | | | | | | | | | | | | | | | | | | |
Critical infrastructure & solutions
|
| | | $ | 769.9 | | | | | $ | 565.2 | | | | | $ | 343.0 | | | | | $ | 1,678.1 | | |
Services & spares
|
| | | | 491.0 | | | | | | 263.5 | | | | | | 210.4 | | | | | | 964.9 | | |
Integrated rack solutions
|
| | | | 222.4 | | | | | | 97.6 | | | | | | 101.9 | | | | | | 421.9 | | |
Total
|
| | | $ | 1,483.3 | | | | | $ | 926.3 | | | | | $ | 655.3 | | | | | $ | 3,064.9 | | |
Timing of revenue recognition: | | | | | | | | | | | | | | | | | | | | | | | | | |
Products and services transferred at a point in time
|
| | | $ | 1,022.3 | | | | | $ | 720.3 | | | | | $ | 505.1 | | | | | $ | 2,247.7 | | |
Products and services transferred over time
|
| | | | 461.0 | | | | | | 206.0 | | | | | | 150.2 | | | | | | 817.2 | | |
Total
|
| | | $ | 1,483.3 | | | | | $ | 926.3 | | | | | $ | 655.3 | | | | | $ | 3,064.9 | | |
|
| | |
Nine months ended September 30, 2019
|
| |||||||||||||||||||||
| | |
Americas
|
| |
Asia Pacific
|
| |
Europe, Middle East, &
Africa |
| |
Total
|
| ||||||||||||
Sales by Product and Service Offering:(2) | | | | | | | | | | | | | | | | | | | | | | | | | |
Critical infrastructure & solutions
|
| | | $ | 937.1 | | | | | $ | 527.9 | | | | | $ | 355.4 | | | | | $ | 1,820.4 | | |
Services & spares
|
| | | | 505.5 | | | | | | 268.2 | | | | | | 211.7 | | | | | | 985.4 | | |
Integrated rack solutions
|
| | | | 232.8 | | | | | | 110.0 | | | | | | 111.1 | | | | | | 453.9 | | |
Total
|
| | | $ | 1,675.4 | | | | | $ | 906.1 | | | | | $ | 678.2 | | | | | $ | 3,259.7 | | |
Timing of revenue recognition: | | | | | | | | | | | | | | | | | | | | | | | | | |
Products and services transferred at a point in time
|
| | | $ | 1,217.1 | | | | | $ | 706.5 | | | | | $ | 548.7 | | | | | $ | 2,472.3 | | |
Products and services transferred over time
|
| | | | 458.3 | | | | | | 199.6 | | | | | | 129.5 | | | | | | 787.4 | | |
Total
|
| | | $ | 1,675.4 | | | | | $ | 906.1 | | | | | $ | 678.2 | | | | | $ | 3,259.7 | | |
| | |
Balances at
September 30, 2020 |
| |
Balances at
December 31, 2019 |
| ||||||
Deferred revenue – current(3)
|
| | | $ | 189.8 | | | | | $ | 160.9 | | |
Deferred revenue – noncurrent(4)
|
| | | | 38.9 | | | | | | 41.3 | | |
Other contract liabilities – current(3)
|
| | | | 48.3 | | | | | | 39.8 | | |
| | |
Nine months ended
September 30, 2020 |
| |
Nine months ended
September 30, 2019 |
| ||||||
Americas
|
| | | $ | 14.8 | | | | | $ | 2.6 | | |
Asia Pacific
|
| | | | 10.8 | | | | | | 0.1 | | |
Europe, Middle East & Africa
|
| | | | 42.2 | | | | | | 6.7 | | |
Corporate
|
| | | | 5.2 | | | | | | — | | |
Total
|
| | | $ | 73.0 | | | | | $ | 9.4 | | |
| | |
December 31, 2019
|
| |
Expense
|
| |
Paid/Utilized
|
| |
September 30, 2020
|
| ||||||||||||
Severance and benefits
|
| | | $ | 21.6 | | | | | $ | 70.7 | | | | | $ | (15.6) | | | | | $ | 76.7 | | |
Plant closing and other
|
| | | | 0.6 | | | | | | 2.3 | | | | | | (2.3) | | | | | | 0.6 | | |
Total
|
| | | $ | 22.2 | | | | | $ | 73.0 | | | | | $ | (17.9) | | | | | $ | 77.3 | | |
| | |
December 31, 2018
|
| |
Expense
|
| |
Paid/Utilized
|
| |
September 30, 2019
|
| ||||||||||||
Severance and benefits
|
| | | $ | 24.6 | | | | | $ | 8.3 | | | | | $ | (15.8) | | | | | $ | 17.1 | | |
Plant closing and other
|
| | | | 1.2 | | | | | | 1.1 | | | | | | (1.3) | | | | | | 1.0 | | |
Total
|
| | | $ | 25.8 | | | | | $ | 9.4 | | | | | $ | (17.1) | | | | | $ | 18.1 | | |
| | |
Americas
|
| |
Asia Pacific
|
| |
Europe, Middle East &
Africa |
| |
Total
|
| ||||||||||||
Balance, December 31, 2019
|
| | | $ | 371.5 | | | | | $ | 50.3 | | | | | $ | 184.0 | | | | | $ | 605.8 | | |
Foreign currency translation and other
|
| | | | (1.3) | | | | | | 3.0 | | | | | | 4.2 | | | | | | 5.9 | | |
Balance, September 30, 2020
|
| | | $ | 370.2 | | | | | $ | 53.3 | | | | | $ | 188.2 | | | | | $ | 611.7 | | |
As of September 30, 2020
|
| |
Gross
|
| |
Accumulated
Amortization |
| |
Net
|
| |||||||||
Customer relationships
|
| | | $ | 1,095.6 | | | | | $ | (334.2) | | | | | $ | 761.4 | | |
Developed technology
|
| | | | 321.0 | | | | | | (130.9) | | | | | | 190.1 | | |
Capitalized software
|
| | | | 92.9 | | | | | | (45.8) | | | | | | 47.1 | | |
Trademarks
|
| | | | 36.6 | | | | | | (16.0) | | | | | | 20.6 | | |
Total finite-lived identifiable intangible assets
|
| | | $ | 1,546.1 | | | | | $ | (526.9) | | | | | $ | 1,019.2 | | |
Indefinite-lived trademarks
|
| | | | 292.5 | | | | | | — | | | | | | 292.5 | | |
Total intangible assets
|
| | | $ | 1,838.6 | | | | | $ | (526.9) | | | | | $ | 1,311.7 | | |
|
As of December 31, 2019
|
| |
Gross
|
| |
Accumulated
Amortization |
| |
Net
|
| |||||||||
Customer relationships
|
| | | $ | 1,099.2 | | | | | $ | (268.2) | | | | | $ | 831.0 | | |
Developed technology
|
| | | | 328.2 | | | | | | (105.4) | | | | | | 222.8 | | |
Capitalized software
|
| | | | 103.3 | | | | | | (35.8) | | | | | | 67.5 | | |
Trademarks
|
| | | | 38.6 | | | | | | (12.4) | | | | | | 26.2 | | |
Favorable operating leases
|
| | | | 2.1 | | | | | | (2.1) | | | | | | — | | |
Total finite-lived identifiable intangible assets
|
| | | $ | 1,571.4 | | | | | $ | (423.9) | | | | | $ | 1,147.5 | | |
Indefinite-lived trademarks
|
| | | | 294.1 | | | | | | — | | | | | | 294.1 | | |
Total intangible assets
|
| | | $ | 1,865.5 | | | | | $ | (423.9) | | | | | $ | 1,441.6 | | |
| | |
September 30, 2020
|
| |
December 31, 2019
|
| ||||||
Term Loan due 2027
|
| | | $ | 2,189.0 | | | | | $ | — | | |
ABL Revolving Credit Facility
|
| | | | 100.0 | | | | | | 145.2 | | |
Term Loan due 2023
|
| | | | — | | | | | | 2,070.0 | | |
9.250% Notes due 2024
|
| | | | — | | | | | | 750.0 | | |
12.00%/13.00% Senior PIK Toggle Notes due 2022
|
| | | | — | | | | | | 500.0 | | |
10.00% Notes due 2024
|
| | | | — | | | | | | 120.0 | | |
Unamortized discount and issuance costs
|
| | | | (32.2) | | | | | | (117.9) | | |
| | | | | 2,256.8 | | | | | | 3,467.3 | | |
Less: Current Portion
|
| | | | (22.0) | | | | | | — | | |
Total long-term debt, net of current portion
|
| | | $ | 2,234.8 | | | | | $ | 3,467.3 | | |
| | |
Term Loan
|
| |
ABL
|
| |
Short-term
borrowings |
| |
Total
|
| ||||||||||||
Remainder of 2020
|
| | | $ | 5.5 | | | | | $ | — | | | | | $ | 19.1 | | | | | $ | 24.6 | | |
2021
|
| | | | 22.0 | | | | | | — | | | | | | — | | | | | | 22.0 | | |
2022
|
| | | | 22.0 | | | | | | — | | | | | | — | | | | | | 22.0 | | |
2023
|
| | | | 22.0 | | | | | | — | | | | | | — | | | | | | 22.0 | | |
2024
|
| | | | 22.0 | | | | | | — | | | | | | — | | | | | | 22.0 | | |
2025
|
| | | | 22.0 | | | | | | 100.0 | | | | | | — | | | | | | 122.0 | | |
Thereafter
|
| | | | 2,073.5 | | | | | | — | | | | | | — | | | | | | 2,073.5 | | |
Total
|
| | | $ | 2,189.0 | | | | | $ | 100.0 | | | | | $ | 19.1 | | | | | $ | 2,308.1 | | |
| | |
Nine months ended
September 30, 2020 |
| |
Nine months ended
September 30, 2019 |
| ||||||
Operating lease cost
|
| | | $ | 38.3 | | | | | $ | 37.5 | | |
Short-term and variable lease cost
|
| | | | 19.5 | | | | | | 21.8 | | |
Total lease cost
|
| | | $ | 57.8 | | | | | $ | 59.3 | | |
| | |
Nine months ended
September 30, 2020 |
| |
Nine months ended
September 30, 2019 |
| ||||||
Cash paid for amounts included in the measurement of lease liabilities:
|
| | | | | | | | | | | | |
Operating cash outflows – Payments on operating leases
|
| | | $ | 38.3 | | | | | $ | 37.5 | | |
Right-of-use assets obtained in exchange for new lease obligations: | | | | | | | | | | | | | |
Operating leases
|
| | | $ | 42.0 | | | | | $ | 142.8 | | |
| | |
Financial statement line item
|
| |
September 30, 2020
|
| |
December 31, 2019
|
| ||||||
Operating lease right-of-use assets
|
| | Other assets | | | | $ | 127.4 | | | | | $ | 110.4 | | |
Operating lease liabilities
|
| |
Accrued expenses and other liabilities
|
| | | | 38.2 | | | | | | 35.0 | | |
Operating lease liabilities
|
| | Other long-term liabilities | | | | | 93.1 | | | | | | 78.2 | | |
Total lease liabilities
|
| | | | | | $ | 131.3 | | | | | $ | 113.2 | | |
| | |
September 30, 2020
|
| |
December 31, 2019
|
|
Weighted Average Remaining Lease Term
|
| |
4.3 years
|
| |
4.5 years
|
|
Weighted Average Discount Rate
|
| |
6.4%
|
| |
7.3%
|
|
| | |
As of September 30, 2020
|
| |
As of December 31, 2019
|
| ||||||
| | |
Operating Leases
|
| |||||||||
2020
|
| | | $ | 12.9 | | | | | $ | 43.3 | | |
2021
|
| | | | 43.4 | | | | | | 31.6 | | |
2022
|
| | | | 35.1 | | | | | | 24.1 | | |
2023
|
| | | | 27.6 | | | | | | 18.0 | | |
2024
|
| | | | 16.9 | | | | | | 10.6 | | |
Thereafter
|
| | | | 18.6 | | | | | | 14.2 | | |
Total Lease Payments
|
| | | | 154.5 | | | | | | 141.8 | | |
Less: Imputed Interest
|
| | | | (23.2) | | | | | | (28.6) | | |
Present value of lease liabilities
|
| | | $ | 131.3 | | | | | $ | 113.2 | | |
|
| | |
September 30, 2020
|
| |
December 31, 2019
|
| ||||||
Reconciliation of cash, cash equivalents, and restricted cash | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 324.3 | | | | | $ | 223.5 | | |
Restricted cash included in other current assets
|
| | | | 8.0 | | | | | | 10.2 | | |
Total cash, cash equivalents, and restricted cash
|
| | | $ | 332.3 | | | | | $ | 233.7 | | |
|
| | |
September 30, 2020
|
| |
December 31, 2019
|
| ||||||
Inventories | | | | | | | | | | | | | |
Finished products
|
| | | $ | 208.0 | | | | | $ | 180.2 | | |
Raw materials
|
| | | | 160.9 | | | | | | 162.6 | | |
Work in process
|
| | | | 96.6 | | | | | | 58.2 | | |
Total inventories
|
| | | $ | 465.5 | | | | | $ | 401.0 | | |
|
| | |
September 30, 2020
|
| |
December 31, 2019
|
| ||||||
Property, plant and equipment, net | | | | | | | | | | | | | |
Machinery and equipment
|
| | | $ | 300.5 | | | | | $ | 280.7 | | |
Buildings
|
| | | | 253.8 | | | | | | 243.2 | | |
Land
|
| | | | 47.1 | | | | | | 46.7 | | |
Construction in progress
|
| | | | 10.2 | | | | | | 21.9 | | |
Property, plant and equipment, at cost
|
| | | | 611.6 | | | | | | 592.5 | | |
Less: Accumulated depreciation
|
| | | | (204.7) | | | | | | (164.3) | | |
Property, plant and equipment, net
|
| | | $ | 406.9 | | | | | $ | 428.2 | | |
|
| | |
September 30, 2020
|
| |
December 31, 2019
|
| ||||||
Accrued expenses and other liabilities | | | | | | | | | | | | | |
Deferred revenue
|
| | | $ | 189.8 | | | | | $ | 160.9 | | |
Accrued payroll and other employee compensation
|
| | | | 128.9 | | | | | | 145.4 | | |
Litigation reserve (see note 17)
|
| | | | 96.6 | | | | | | 92.9 | | |
Contract liabilities (see note 3)
|
| | | | 48.3 | | | | | | 39.8 | | |
Operating lease liabilities
|
| | | | 38.2 | | | | | | 35.0 | | |
Product warranty
|
| | | | 33.1 | | | | | | 43.2 | | |
Restructuring (see note 4)
|
| | | | 77.3 | | | | | | 22.2 | | |
Other
|
| | | | 264.6 | | | | | | 328.3 | | |
Total
|
| | | $ | 876.8 | | | | | $ | 867.7 | | |
| | |
2020
|
| |
2019
|
| ||||||
Change in product warranty accrual | | | | | | | | | | | | | |
Beginning balance, December 31
|
| | | $ | 43.2 | | | | | $ | 44.9 | | |
Provision charge to expense
|
| | | | 18.6 | | | | | | 18.7 | | |
Paid/utilized
|
| | | | (28.7) | | | | | | (25.3) | | |
Ending balance, September 30
|
| | | $ | 33.1 | | | | | $ | 38.3 | | |
| | |
Total
|
| |
Quoted prices in active
markets for identical assets (Level 1) |
| |
Other observable inputs
(Level 2) |
| |
Unobservable inputs
(Level 3) |
| ||||||||||||
September 30, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | |
Tax Receivable Agreement
|
| | | | 147.1 | | | | | | — | | | | | | — | | | | | | 147.1 | | |
Interest rate swaps
|
| | | | 37.8 | | | | | | — | | | | | | 37.8 | | | | | | — | | |
|
Beginning liability balance, January 1, 2020
|
| | | $ | — | | |
|
Tax receivable agreement, initially recorded
|
| | | | 133.4 | | |
|
Change in fair value
|
| | | | 13.7 | | |
|
Ending liability balance, September 30, 2020
|
| | | $ | 147.1 | | |
| | |
September 30, 2020(1)
|
| |
December 31, 2019
|
| ||||||||||||||||||
| | |
Fair Value
|
| |
Par Value(2)
|
| |
Fair Value
|
| |
Par Value(2)
|
| ||||||||||||
Term Loan due 2027
|
| | | $ | 2,134.3 | | | | | $ | 2,189.0 | | | | | $ | — | | | | | $ | — | | |
ABL Revolving Credit Facility due 2025
|
| | | | 100.0 | | | | | | 100.0 | | | | | | 145.2 | | | | | | 145.2 | | |
Short-term borrowings
|
| | | | 19.1 | | | | | | 19.1 | | | | | | — | | | | | | — | | |
Term Loan due 2023
|
| | | | — | | | | | | — | | | | | | 2,064.8 | | | | | | 2,070.0 | | |
9.250% Notes due 2024
|
| | | | — | | | | | | — | | | | | | 805.3 | | | | | | 750.0 | | |
12.00%/13.00% Senior PIK Toggle Notes due 2022
|
| | | | — | | | | | | — | | | | | | 517.5 | | | | | | 500.0 | | |
10.00% Notes due 2024
|
| | | | — | | | | | | — | | | | | | 127.5 | | | | | | 120.0 | | |
| | |
Nine months ended
September 30, 2020 |
| |
Nine months ended
September 30, 2019 |
| ||||||
Amortization of intangibles (excluding software)
|
| | | | 97.1 | | | | | | 96.7 | | |
Restructuring costs (see Note 4)
|
| | | | 73.0 | | | | | | 9.4 | | |
Foreign currency loss (gain), net
|
| | | | 16.3 | | | | | | (6.6) | | |
Asset impairment (see Note 5)
|
| | | | 21.7 | | | | | | — | | |
Other, net
|
| | | | 1.9 | | | | | | (0.9) | | |
Total
|
| | | $ | 210.0 | | | | | $ | 98.6 | | |
| | |
Nine months ended
September 30, 2020 |
| |
Nine months ended
September 30, 2019 |
| ||||||
Foreign currency translation, beginning
|
| | | $ | 32.9 | | | | | $ | 43.2 | | |
Other comprehensive income (loss)
|
| | | | 3.7 | | | | | | (49.0) | | |
Foreign currency translation, ending
|
| | | | 36.6 | | | | | | (5.8) | | |
Interest rate swaps, beginning
|
| | | | — | | | | | | — | | |
Unrealized losses deferred during the period(2)
|
| | | | (37.8) | | | | | | — | | |
Interest rate swaps, ending
|
| | | | (37.8) | | | | | | — | | |
Pension, beginning
|
| | | | (14.8) | | | | | | (1.4) | | |
Actuarial gains (losses) deferred during the period, net of income taxes
|
| | | | (0.2) | | | | | | — | | |
Pension, ending
|
| | | | (15.0) | | | | | | (1.4) | | |
Tax receivable agreement, beginning
|
| | | | — | | | | | | — | | |
Unrealized (loss) gain during the period(1)
|
| | | | 5.1 | | | | | | — | | |
Tax receivable agreement, ending
|
| | | | 5.1 | | | | | | — | | |
Accumulated other comprehensive (loss) income
|
| | | $ | (11.1) | | | | | $ | (7.2) | | |
Sales
|
| |
Nine months ended
September 30, 2020 |
| |
Nine months ended
September 30, 2019 |
| ||||||
Americas
|
| | | $ | 1,494.8 | | | | | $ | 1,694.6 | | |
Asia Pacific
|
| | | | 975.2 | | | | | | 985.9 | | |
Europe, Middle East & Africa
|
| | | | 690.6 | | | | | | 714.0 | | |
| | | | | 3,160.6 | | | | | | 3,394.5 | | |
Eliminations
|
| | | | (95.7) | | | | | | (134.8) | | |
Total
|
| | | $ | 3,064.9 | | | | | $ | 3,259.7 | | |
|
Intersegment sales
|
| |
Nine months ended
September 30, 2020 |
| |
Nine months ended
September 30, 2019 |
| ||||||
Americas
|
| | | $ | 11.5 | | | | | $ | 19.2 | | |
Asia Pacific
|
| | | | 48.9 | | | | | | 79.8 | | |
Europe, Middle East & Africa
|
| | | | 35.3 | | | | | | 35.8 | | |
Total
|
| | | $ | 95.7 | | | | | $ | 134.8 | | |
|
Earnings (loss) before income taxes
|
| |
Nine months ended
September 30, 2020 |
| |
Nine months ended
September 30, 2019 |
| ||||||
Americas
|
| | | $ | 260.3 | | | | | $ | 270.6 | | |
Asia Pacific
|
| | | | 98.9 | | | | | | 116.8 | | |
Europe, Middle East & Africa
|
| | | | 31.0 | | | | | | 56.8 | | |
| | | | | 390.2 | | | | | | 444.2 | | |
Corporate and other
|
| | | | (470.8) | | | | | | (286.0) | | |
Interest expense, net
|
| | | | (125.4) | | | | | | (234.2) | | |
Income (loss) before income taxes
|
| | | $ | (206.0) | | | | | $ | (76.0) | | |
|
Total Assets
|
| |
September 30, 2020
|
| |
December 31, 2019
|
| ||||||
Americas
|
| | | $ | 2,173.3 | | | | | $ | 2,296.4 | | |
Asia Pacific
|
| | | | 1,252.3 | | | | | | 1,152.2 | | |
Europe, Middle East & Africa
|
| | | | 988.0 | | | | | | 947.5 | | |
| | | | | 4,413.6 | | | | | | 4,396.1 | | |
Corporate and other
|
| | | | 358.1 | | | | | | 261.3 | | |
Total
|
| | | $ | 4,771.7 | | | | | $ | 4,657.4 | | |
|
Sales by Products and Services Offering
|
| |
Nine months ended
September 30, 2020 |
| |
Nine months ended
September 30, 2019(1) |
| ||||||
Critical infrastructure & solutions
|
| | | $ | 1,678.1 | | | | | $ | 1,820.4 | | |
Services & spares
|
| | | | 964.9 | | | | | | 985.4 | | |
Integrated rack solutions
|
| | | | 421.9 | | | | | | 453.9 | | |
Total
|
| | | $ | 3,064.9 | | | | | $ | 3,259.7 | | |
| | |
Nine months ended
September 30, 2020 |
| |||
Expected volatility
|
| | | | 27% | | |
Expected option life in years
|
| | | | 6.25 | | |
Expected dividend yield
|
| | | | 0.08% | | |
Risk-free interest rate
|
| | | | 1.19% | | |
Weighted-average fair value of stock options
|
| | | $ | 3.80 | | |
| | |
Options
|
| |
Weighted-average
exercise price per option |
| |
Weighted-average
remaining contractual life in years |
| |
Aggregate intrinsic
value(1) |
| ||||||||||||
Outstanding at January 1, 2020
|
| | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | |
Granted
|
| | | | 7,269,365 | | | | | | 11.77 | | | | | | 9.43 | | | | | | — | | |
Exercised
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Forfeited and canceled
|
| | | | (300,325) | | | | | | 11.91 | | | | | | — | | | | | | — | | |
Outstanding at September 30, 2020
|
| | | | 6,969,040 | | | | | | 11.77 | | | | | | 9.43 | | | | | $ | 12.5 | | |
| | |
Restricted
stock units |
| |
Weighted-average
fair value per unit |
| ||||||
Outstanding at January 1, 2020
|
| | | | — | | | | | $ | — | | |
Granted
|
| | | | 3,915,150 | | | | | | 11.86 | | |
Exercised
|
| | | | — | | | | | | — | | |
Forfeited and canceled
|
| | | | (25,293) | | | | | | 8.50 | | |
Outstanding at September 30, 2020
|
| | | | 3,889,857 | | | | | | 11.88 | | |
|
| | |
Nine months ended
September 30, 2020 |
| |
Nine months ended
September 30, 2019(1) |
| ||||||
Net income (loss) attributable to common shareholders
|
| | | $ | (258.5) | | | | | $ | (106.9) | | |
Weighted-average number of ordinary shares outstanding – basic
|
| | | | 299,266,849 | | | | | | 118,261,955 | | |
Dilutive effect of equity-based compensation and warrants
|
| | | | — | | | | | | — | | |
Weighted-average number of ordinary shares outstanding – diluted
|
| | | | 299,266,849 | | | | | | 118,261,955 | | |
Net income per share attributable to common shareholders
|
| | | | | | | | | | | | |
Basic
|
| | | $ | (0.86) | | | | | $ | (0.90) | | |
Diluted
|
| | | | (0.86) | | | | | | (0.90) | | |
| | ||||||||||||||||||
| | |
December 31,
2019 |
| |
December 31,
2018 |
| |
December 31,
2017 |
| |||||||||
Net sales | | | | | | | | | | | | | | | | | | | |
Net sales – products
|
| | | $ | 3,356.1 | | | | | $ | 3,230.3 | | | | | $ | 2,913.3 | | |
Net sales – services
|
| | | | 1,075.1 | | | | | | 1,055.3 | | | | | | 966.1 | | |
Net sales
|
| | | | 4,431.2 | | | | | | 4,285.6 | | | | | | 3,879.4 | | |
Costs and expenses | | | | | | | | | | | | | | | | | | | |
Cost of sales – products
|
| | | | 2,349.2 | | | | | | 2,274.5 | | | | | | 2,028.4 | | |
Cost of sales – services
|
| | | | 629.0 | | | | | | 590.7 | | | | | | 538.4 | | |
Cost of sales
|
| | | | 2,978.2 | | | | | | 2,865.2 | | | | | | 2,566.8 | | |
Selling, general and administrative expenses
|
| | | | 1,100.8 | | | | | | 1,223.8 | | | | | | 1,086.0 | | |
Other deductions, net
|
| | | | 146.1 | | | | | | 178.8 | | | | | | 254.4 | | |
Interest expense, net
|
| | | | 310.4 | | | | | | 288.8 | | | | | | 379.3 | | |
Loss from Continuing Operations before income taxes
|
| | | | (104.3) | | | | | | (271.0) | | | | | | (407.1) | | |
Income tax expense (benefit)
|
| | | | 36.5 | | | | | | 49.9 | | | | | | (19.7) | | |
Loss from Continuing Operations
|
| | | | (140.8) | | | | | | (320.9) | | | | | | (387.4) | | |
Earnings from Discontinued Operations – net of income taxes
|
| | | | — | | | | | | 6.9 | | | | | | 17.8 | | |
Net loss
|
| | | $ | (140.8) | | | | | $ | (314.0) | | | | | $ | (369.6) | | |
| | ||||||||||||||||||
| | |
December 31,
2019 |
| |
December 31,
2018 |
| |
December 31,
2017 |
| |||||||||
Net loss
|
| | | $ | (140.8) | | | | | $ | (314.0) | | | | | $ | (369.6) | | |
Other comprehensive income (loss), net of tax: | | | | | | | | | | | | | | | | | | | |
Foreign currency translation
|
| | | | (10.3) | | | | | | (90.6) | | | | | | 142.1 | | |
Pension(1)
|
| | | | (13.4) | | | | | | (1.1) | | | | | | 1.9 | | |
Comprehensive loss
|
| | | $ | (164.5) | | | | | $ | (405.7) | | | | | $ | (225.6) | | |
| | ||||||||||||
| | |
December 31,
2019 |
| |
December 31,
2018 |
| ||||||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 223.5 | | | | | $ | 215.1 | | |
Accounts receivable, less allowances of $19.9 and $17.6 at 2019 and 2018, respectively
|
| | | | 1,212.2 | | | | | | 1,251.8 | | |
Inventories
|
| | | | 401.0 | | | | | | 486.5 | | |
Other current assets
|
| | | | 180.7 | | | | | | 141.9 | | |
Total current assets
|
| | | | 2,017.4 | | | | | | 2,095.3 | | |
Property, plant and equipment, net
|
| | | | 428.2 | | | | | | 441.7 | | |
Other assets | | | | | | | | | | | | | |
Goodwill
|
| | | | 605.8 | | | | | | 634.0 | | |
Other intangible assets, net
|
| | | | 1,441.6 | | | | | | 1,564.2 | | |
Deferred income taxes
|
| | | | 9.0 | | | | | | 10.4 | | |
Other
|
| | | | 155.4 | | | | | | 48.8 | | |
Total other assets
|
| | | | 2,211.8 | | | | | | 2,257.4 | | |
Total assets
|
| | | $ | 4,657.4 | | | | | $ | 4,794.4 | | |
LIABILITIES AND EQUITY | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 636.8 | | | | | $ | 778.2 | | |
Accrued expenses and other liabilities
|
| | | | 867.7 | | | | | | 804.3 | | |
Income taxes
|
| | | | 15.2 | | | | | | 23.9 | | |
Total current liabilities
|
| | | | 1,519.7 | | | | | | 1,606.4 | | |
Long-term debt, net
|
| | | | 3,467.3 | | | | | | 3,427.8 | | |
Deferred income taxes
|
| | | | 124.7 | | | | | | 160.0 | | |
Other long-term liabilities
|
| | | | 250.5 | | | | | | 140.5 | | |
Total liabilities
|
| | | | 5,362.2 | | | | | | 5,334.7 | | |
Equity | | | | | | | | | | | | | |
Class A Units, 850,000 issued and outstanding
|
| | | | — | | | | | | — | | |
Class B Units, 150,000 issued and outstanding
|
| | | | — | | | | | | — | | |
Additional paid-in capital
|
| | | | 277.7 | | | | | | 277.7 | | |
Accumulated deficit
|
| | | | (1,000.6) | | | | | | (859.8) | | |
Accumulated other comprehensive income
|
| | | | 18.1 | | | | | | 41.8 | | |
Total equity
|
| | | | (704.8) | | | | | | (540.3) | | |
Total liabilities and equity
|
| | | $ | 4,657.4 | | | | | $ | 4,794.4 | | |
| | ||||||||||||||||||
| | |
December 31,
2019 |
| |
December 31,
2018 |
| |
December 31,
2017 |
| |||||||||
Cash flows from operating activities: | | | | | | | | | | | | | | | | | | | |
Net loss
|
| | | $ | (140.8) | | | | | $ | (314.0) | | | | | $ | (369.6) | | |
Adjustments to reconcile net loss to net cash provided by (used for) operating activities:
|
| | | | | | | | | | | | | | | | | | |
Depreciation
|
| | | | 57.1 | | | | | | 60.4 | | | | | | 64.5 | | |
Amortization
|
| | | | 145.8 | | | | | | 156.6 | | | | | | 279.8 | | |
Deferred income taxes
|
| | | | (13.8) | | | | | | (40.3) | | | | | | (85.9) | | |
Amortization of debt discount and issuance costs
|
| | | | 27.9 | | | | | | 25.5 | | | | | | 52.0 | | |
Gain on sale of business
|
| | | | — | | | | | | (6.9) | | | | | | (33.2) | | |
Changes in operating working capital
|
| | | | (36.4) | | | | | | (110.0) | | | | | | 46.8 | | |
Other
|
| | | | 17.7 | | | | | | 6.8 | | | | | | (4.0) | | |
Net cash provided by (used for) operating activities
|
| | | | 57.5 | | | | | | (221.9) | | | | | | (49.6) | | |
Cash flows from investing activities: | | | | | | | | | | | | | | | | | | | |
Capital expenditures
|
| | | | (47.6) | | | | | | (64.6) | | | | | | (36.7) | | |
Investments in capitalized software
|
| | | | (22.7) | | | | | | (41.2) | | | | | | (7.7) | | |
Proceeds from disposition of property, plant and equipment
|
| | | | 5.0 | | | | | | 18.0 | | | | | | — | | |
Acquisition of business, net of cash acquired
|
| | | | — | | | | | | (124.3) | | | | | | (211.4) | | |
Proceeds from sale of business
|
| | | | — | | | | | | 4.4 | | | | | | 1,244.0 | | |
Collection of note receivable
|
| | | | — | | | | | | — | | | | | | 59.7 | | |
Other
|
| | | | — | | | | | | — | | | | | | 10.2 | | |
Net cash (used for) provided by investing activities
|
| | | | (65.3) | | | | | | (207.7) | | | | | | 1,058.1 | | |
Cash flows from financing activities: | | | | | | | | | | | | | | | | | | | |
Borrowings from ABL revolving credit facility
|
| | | | 491.8 | | | | | | 565.1 | | | | | | 500.0 | | |
Repayments of ABL revolving credit facility
|
| | | | (591.2) | | | | | | (320.0) | | | | | | (500.0) | | |
Proceeds from the issuance of PIK notes
|
| | | | — | | | | | | — | | | | | | 482.5 | | |
Proceeds from term loan, net of discount
|
| | | | — | | | | | | — | | | | | | 325.0 | | |
Proceeds from issuance of 10.00% Notes, net of discount
|
| | | | 114.2 | | | | | | — | | | | | | — | | |
Repayments of term loan
|
| | | | — | | | | | | — | | | | | | (575.0) | | |
Debt issuance and related costs
|
| | | | — | | | | | | — | | | | | | (39.6) | | |
Dividends to JV Holdings
|
| | | | — | | | | | | — | | | | | | (1,024.0) | | |
Settlement of contingent consideration
|
| | | | — | | | | | | — | | | | | | (43.0) | | |
Net cash provided by (used for) financing activities
|
| | | | 14.8 | | | | | | 245.1 | | | | | | (874.1) | | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
| | | | 1.4 | | | | | | 11.6 | | | | | | 14.2 | | |
Increase (decrease) in cash, cash equivalents and restricted cash
|
| | | | 8.4 | | | | | | (172.9) | | | | | | 148.6 | | |
Beginning cash, cash equivalents and restricted cash
|
| | | | 225.3 | | | | | | 398.2 | | | | | | 249.6 | | |
Ending cash, cash equivalents and restricted cash
|
| | | $ | 233.7 | | | | | $ | 225.3 | | | | | $ | 398.2 | | |
Changes in operating working capital | | | | | | | | | | | | | | | | | | | |
Accounts Receivable
|
| | | $ | 39.8 | | | | | $ | (139.6) | | | | | $ | (106.8) | | |
Inventories
|
| | | | 85.5 | | | | | | (73.7) | | | | | | 1.2 | | |
Other current assets
|
| | | | (41.6) | | | | | | (66.5) | | | | | | 5.0 | | |
Accounts payable
|
| | | | (140.8) | | | | | | 101.9 | | | | | | 57.3 | | |
Accrued expenses
|
| | | | 34.8 | | | | | | 50.2 | | | | | | 47.5 | | |
Income taxes
|
| | | | (14.1) | | | | | | 17.7 | | | | | | 42.6 | | |
Total changes in operating working capital
|
| | | $ | (36.4) | | | | | $ | (110.0) | | | | | $ | 46.8 | | |
Supplemental Disclosures | | | | | | | | | | | | | | | | | | | |
Cash paid during the year for interest
|
| | | $ | 271.5 | | | | | $ | 259.6 | | | | | $ | 213.1 | | |
Cash paid during the year for income tax, net
|
| | | | 48.7 | | | | | | 58.0 | | | | | | 72.6 | | |
Property and equipment acquired through capital lease obligations
|
| | | | 1.8 | | | | | | 4.2 | | | | | | — | | |
| | ||||||||||||||||||||||||||||||
| | |
Common
stock |
| |
Additional
paid-in capital |
| |
Accumulated
deficit |
| |
Accumulated
other comprehensive income (loss) |
| |
Total
|
| |||||||||||||||
Balance as of December 31, 2016
|
| | | $ | — | | | | | $ | 1,301.7 | | | | | $ | (171.2) | | | | | $ | (10.5) | | | | | $ | 1,120.0 | | |
Net Loss
|
| | | | — | | | | | | — | | | | | | (369.6) | | | | | | — | | | | | | (369.6) | | |
Dividends to JV Holdings
|
| | | | — | | | | | | (1,024.0) | | | | | | — | | | | | | — | | | | | | (1,024.0) | | |
Other comprehensive income, net of tax
|
| | | | — | | | | | | — | | | | | | — | | | | | | 144.0 | | | | | | 144.0 | | |
Balance as of December 31, 2017
|
| | | | — | | | | | | 277.7 | | | | | | (540.8) | | | | | | 133.5 | | | | | | (129.6) | | |
Net Loss
|
| | | | — | | | | | | — | | | | | | (314.0) | | | | | | — | | | | | | (314.0) | | |
ASC 606 cumulative adjustment
|
| | | | — | | | | | | — | | | | | | (5.0) | | | | | | — | | | | | | (5.0) | | |
Other comprehensive loss, net of tax
|
| | | | — | | | | | | — | | | | | | — | | | | | | (91.7) | | | | | | (91.7) | | |
Balance as of December 31, 2018
|
| | | $ | — | | | | | $ | 277.7 | | | | | $ | (859.8) | | | | | $ | 41.8 | | | | | $ | (540.3) | | |
Net Loss
|
| | | | — | | | | | | — | | | | | | (140.8) | | | | | | — | | | | | | (140.8) | | |
Other comprehensive loss, net of tax
|
| | | | — | | | | | | — | | | | | | — | | | | | | (23.7) | | | | | | (23.7) | | |
Balance as of December 31, 2019
|
| | | $ | — | | | | | $ | 277.7 | | | | | $ | (1,000.6) | | | | | $ | 18.1 | | | | | $ | (704.8) | | |
| | |
December 31,
2019 |
| |
December 31,
2018 |
| |
December 31,
2017 |
| |||||||||
Cash and cash equivalents
|
| | | $ | 223.5 | | | | | $ | 215.1 | | | | | $ | 388.0 | | |
Restricted cash included in other current assets
|
| | | | 10.2 | | | | | | 10.2 | | | | | | 10.2 | | |
Total cash, cash equivalents, and restricted cash
|
| | | $ | 233.7 | | | | | $ | 225.3 | | | | | $ | 398.2 | | |
| | |
December 31,
2019 |
| |
December 31,
2018 |
| ||||||
Inventories | | | | | | | | | | | | | |
Raw materials
|
| | | $ | 180.2 | | | | | $ | 201.0 | | |
Finished Products
|
| | | | 162.6 | | | | | | 201.4 | | |
Work in process
|
| | | | 58.2 | | | | | | 84.1 | | |
Total inventories
|
| | | $ | 401.0 | | | | | $ | 486.5 | | |
| | |
December 31,
2019 |
| |
December 31,
2018 |
| ||||||
Property, plant and equipment, net | | | | | | | | | | | | | |
Machinery and equipment
|
| | | $ | 280.7 | | | | | $ | 254.8 | | |
Buildings
|
| | | | 243.2 | | | | | | 234.0 | | |
Land
|
| | | | 46.7 | | | | | | 51.7 | | |
Construction in progress
|
| | | | 21.9 | | | | | | 15.9 | | |
Property, plant and equipment, at cost
|
| | | | 592.5 | | | | | | 556.4 | | |
Less: Accumulated depreciation
|
| | | | (164.3) | | | | | | (114.7) | | |
Property, plant and equipment, net
|
| | | $ | 428.2 | | | | | $ | 441.7 | | |
| | |
December 31,
2019 |
| |
December 31,
2018 |
| |
December 31,
2017 |
| |||||||||
Beginning balance
|
| | | $ | 44.9 | | | | | $ | 40.0 | | | | | $ | 37.4 | | |
Provision charge to expense
|
| | | | 48.7 | | | | | | 41.0 | | | | | | 32.4 | | |
Paid/utilized
|
| | | | (50.3) | | | | | | (36.1) | | | | | | (29.8) | | |
Ending balance
|
| | | $ | 43.3 | | | | | $ | 44.9 | | | | | $ | 40.0 | | |
| | |
Purchase
consideration |
| |||
Cash
|
| | | $ | 126.1 | | |
Purchase consideration
|
| | | | 126.1 | | |
Less: Cash acquired
|
| | | | (1.8) | | |
Purchase consideration, net of cash acquired
|
| | | $ | 124.3 | | |
| | |
Purchase price
allocation |
| |||
Current assets
|
| | | $ | 18.1 | | |
Property, plant and equipment, net
|
| | | | 28.5 | | |
Intangible assets
|
| | | | 40.4 | | |
Total identifiable assets
|
| | | | 87.0 | | |
Current liabilities
|
| | | | 5.3 | | |
Total identifiable liabilities assumed
|
| | | | 5.3 | | |
Goodwill
|
| | | | 42.6 | | |
Purchase consideration, net of cash acquired
|
| | | $ | 124.3 | | |
| | |
Useful life
(years) |
| |
Fair value
|
| ||||||
Customer relationships
|
| | | | 15 | | | | | $ | 21.9 | | |
Developed technology
|
| | | | 15 | | | | | | 12.4 | | |
Trademarks
|
| | | | 5 | | | | | | 6.1 | | |
Total finite-lived identifiable intangible assets
|
| | | | | | | | | $ | 40.4 | | |
Weighted average useful life of finite-lived intangibles (years)
|
| | | | | | | | | | 13.5 | | |
| | |
Purchase
consideration |
| |||
Cash
|
| | | $ | 144.2 | | |
Contingent consideration
|
| | | | 12.8 | | |
Purchase consideration
|
| | | | 157.0 | | |
Less: Cash acquired
|
| | | | (7.5) | | |
Purchase consideration, net of cash acquired
|
| | | $ | 149.5 | | |
| | |
Purchase price
allocation |
| |||
Current assets
|
| | | $ | 26.4 | | |
Property, plant and equipment, net
|
| | | | 23.6 | | |
Intangible assets
|
| | | | 73.7 | | |
Total identifiable assets
|
| | | | 123.7 | | |
Current liabilities
|
| | | | 13.3 | | |
Deferred income taxes
|
| | | | 23.1 | | |
Total identifiable liabilities assumed
|
| | | | 36.4 | | |
Goodwill
|
| | | | 62.2 | | |
Purchase consideration, net of cash acquired
|
| | | $ | 149.5 | | |
| | |
Useful life
(years) |
| |
Fair value
|
| ||||||
Customer relationships
|
| | | | 10 | | | | | $ | 59.7 | | |
Trademarks
|
| | | | 5 | | | | | | 3.3 | | |
Capitalized software
|
| | | | 5 | | | | | | 7.5 | | |
Other Intangibles
|
| | | | 1 | | | | | | 3.2 | | |
Total finite-lived identifiable intangible assets
|
| | | | | | | | | $ | 73.7 | | |
Weighted average useful life of finite-lived intangibles (years)
|
| | | | | | | | | | 8.9 | | |
| | | | | | | | | | | | | | |
Year ended December 31, 2019
|
| |||||||||
| | |
Americas
|
| |
Asia Pacific
|
| |
Europe,
Middle East, & Africa |
| |
Total
|
| ||||||||||||
Sales by Product and Service Offering: | | | | | | | | | | | | | | | | | | | | | | | | | |
Critical infrastructure & solutions
|
| | | $ | 1,355.4 | | | | | $ | 763.2 | | | | | $ | 514.0 | | | | | $ | 2,632.6 | | |
Services & software solutions
|
| | | | 679.4 | | | | | | 336.0 | | | | | | 283.5 | | | | | | 1,298.9 | | |
I.T. & edge infrastructure and solutions
|
| | | | 194.3 | | | | | | 178.8 | | | | | | 126.6 | | | | | | 499.7 | | |
Total
|
| | | $ | 2,229.1 | | | | | $ | 1,278.0 | | | | | $ | 924.1 | | | | | $ | 4,431.2 | | |
Timing of revenue recognition: | | | | | | | | | | | | | | | | | | | | | | | | | |
Products and services transferred at a point in time
|
| | | $ | 1,592.4 | | | | | $ | 1,007.1 | | | | | $ | 748.9 | | | | | $ | 3,348.4 | | |
Products and services transferred over time
|
| | | | 636.7 | | | | | | 270.9 | | | | | | 175.2 | | | | | | 1,082.8 | | |
Total
|
| | | $ | 2,229.1 | | | | | $ | 1,278.0 | | | | | $ | 924.1 | | | | | $ | 4,431.2 | | |
|
| | | | | | | | |
Year ended December 31, 2018
|
| |||||||||||||||
| | |
Americas
|
| |
Asia Pacific
|
| |
Europe,
Middle East, & Africa |
| |
Total
|
| ||||||||||||
Sales by Product and Service Offering: | | | | | | | | | | | | | | | | | | | | | | | | | |
Critical infrastructure & solutions
|
| | | $ | 1,246.4 | | | | | $ | 723.9 | | | | | $ | 481.5 | | | | | $ | 2,451.8 | | |
Services & software solutions
|
| | | | 669.8 | | | | | | 339.1 | | | | | | 267.2 | | | | | | 1,276.1 | | |
I.T. & edge infrastructure and solutions
|
| | | | 229.5 | | | | | | 181.2 | | | | | | 147.0 | | | | | | 557.7 | | |
Total
|
| | | $ | 2,145.7 | | | | | $ | 1,244.2 | | | | | $ | 895.7 | | | | | $ | 4,285.6 | | |
Timing of revenue recognition: | | | | | | | | | | | | | | | | | | | | | | | | | |
Products and services transferred at a point in time
|
| | | $ | 1,530.6 | | | | | $ | 973.5 | | | | | $ | 701.8 | | | | | $ | 3,205.9 | | |
Products and services transferred over time
|
| | | | 615.1 | | | | | | 270.7 | | | | | | 193.9 | | | | | | 1,079.7 | | |
Total
|
| | | $ | 2,145.7 | | | | | $ | 1,244.2 | | | | | $ | 895.7 | | | | | $ | 4,285.6 | | |
| | |
Balances at
December 31, 2019 |
| |
Balances at
December 31, 2018 |
| ||||||
Deferred revenue – current(1)
|
| | | $ | 160.9 | | | | | $ | 170.5 | | |
Deferred revenue – noncurrent(2)
|
| | | | 41.3 | | | | | | 36.5 | | |
Other contract liabilities – current(1)
|
| | | | 39.8 | | | | | | 29.8 | | |
| | |
December 31,
2017 |
| |||
Net sales | | | | | | | |
Net sales
|
| | | $ | 365.9 | | |
Costs and expenses
|
| | | | | | |
Cost of sales
|
| | | | 204.3 | | |
Selling, general and administrative expenses
|
| | | | 91.1 | | |
Other deductions (income), net
|
| | | | 55.3 | | |
Interest expense, net
|
| | | | 28.7 | | |
Earnings (loss) before income taxes
|
| | | | (13.5) | | |
Income tax expense
|
| | | | 1.9 | | |
Earnings (loss) from Discontinued Operations – before gain on sale of discontinued operations
|
| | | $ | (15.4) | | |
Gain on Disposition of Discontinued Operations – net of income taxes
|
| | | | 33.2 | | |
Earnings (loss) from Discontinued Operations – net of income taxes
|
| | | $ | 17.8 | | |
| | |
December 31,
2017 |
| |||
Depreciation
|
| | | $ | 2.5 | | |
Amortization
|
| | | | 55.0 | | |
Capital expenditures
|
| | | | 0.6 | | |
| | |
2018
|
| |
Paid/ utilized
|
| |
Expense
|
| |
2019
|
| ||||||||||||
Severance and benefits
|
| | | $ | 24.6 | | | | | $ | (21.6) | | | | | $ | 18.6 | | | | | $ | 21.6 | | |
Lease and contract terminations
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Vacant facility and other shutdown costs
|
| | | | 1.2 | | | | | | (1.3) | | | | | | 0.7 | | | | | | 0.6 | | |
Start-up and moving costs
|
| | | | — | | | | | | (1.4) | | | | | | 1.4 | | | | | | — | | |
Total
|
| | | $ | 25.8 | | | | | $ | (24.3) | | | | | $ | 20.7 | | | | | $ | 22.2 | | |
| | |
2017
|
| |
Paid/ utilized
|
| |
Expense
|
| |
2018
|
| ||||||||||||
Severance and benefits
|
| | | $ | 20.1 | | | | | $ | (28.7) | | | | | $ | 33.2 | | | | | $ | 24.6 | | |
Lease and contract terminations
|
| | | | 2.2 | | | | | | (2.2) | | | | | | — | | | | | | — | | |
Vacant facility and other shutdown costs
|
| | | | 5.9 | | | | | | (15.2) | | | | | | 10.5 | | | | | | 1.2 | | |
Start-up and moving costs
|
| | | | 0.1 | | | | | | (2.6) | | | | | | 2.5 | | | | | | — | | |
Total
|
| | | $ | 28.3 | | | | | $ | (48.7) | | | | | $ | 46.2 | | | | | $ | 25.8 | | |
| | |
2016
|
| |
Paid/ utilized
|
| |
Expense
|
| |
2017
|
| ||||||||||||
Severance and benefits
|
| | | $ | 14.8 | | | | | $ | (24.7) | | | | | $ | 30.0 | | | | | $ | 20.1 | | |
Lease and contract terminations
|
| | | | 0.2 | | | | | | (0.3) | | | | | | 2.3 | | | | | | 2.2 | | |
Vacant facility and other shutdown costs
|
| | | | 0.2 | | | | | | (2.4) | | | | | | 8.1 | | | | | | 5.9 | | |
Start-up and moving costs
|
| | | | 0.4 | | | | | | (1.5) | | | | | | 1.2 | | | | | | 0.1 | | |
Total
|
| | | $ | 15.6 | | | | | $ | (28.9) | | | | | $ | 41.6 | | | | | $ | 28.3 | | |
| | |
December 31,
2019 |
| |
December 31,
2018 |
| |
December 31,
2017 |
| |||||||||
Americas
|
| | | $ | 5.3 | | | | | $ | 13.7 | | | | | $ | 11.7 | | |
Asia Pacific
|
| | | | 3.9 | | | | | | 8.3 | | | | | | 13.6 | | |
Europe, Middle East & Africa
|
| | | | 11.1 | | | | | | 19.0 | | | | | | 15.5 | | |
Corporate
|
| | | | 0.4 | | | | | | 5.2 | | | | | | 0.8 | | |
Total
|
| | | $ | 20.7 | | | | | $ | 46.2 | | | | | $ | 41.6 | | |
|
| | |
Americas
|
| |
Asia Pacific
|
| |
Europe,
Middle East & Africa |
| |
Total
|
| ||||||||||||
Balance, December 31, 2017
|
| | | $ | 356.4 | | | | | $ | 53.1 | | | | | $ | 186.6 | | | | | $ | 596.1 | | |
Foreign currency translation
|
| | | | 1.9 | | | | | | (2.5) | | | | | | (10.5) | | | | | | (11.1) | | |
Measurement period adjustments(1)
|
| | | | 9.0 | | | | | | 0.3 | | | | | | 3.0 | | | | | | 12.3 | | |
Acquisitions(1)
|
| | | | 29.2 | | | | | | — | | | | | | 7.5 | | | | | | 36.7 | | |
Balance, December 31, 2018
|
| | | $ | 396.5 | | | | | $ | 50.9 | | | | | $ | 186.6 | | | | | $ | 634.0 | | |
Foreign currency translation and other
|
| | | | (25.0) | | | | | | (0.6) | | | | | | (2.6) | | | | | | (28.2) | | |
Balance, December 31, 2019
|
| | | $ | 371.5 | | | | | $ | 50.3 | | | | | $ | 184.0 | | | | | $ | 605.8 | | |
| | |
As of December 31, 2019
|
| |||||||||||||||
| | |
Gross
|
| |
Accumulated
amortization |
| |
Net
|
| |||||||||
Customer relationships
|
| | | $ | 1,099.2 | | | | | $ | (268.2) | | | | | $ | 831.0 | | |
Developed Technology
|
| | | | 328.2 | | | | | | (105.4) | | | | | | 222.8 | | |
Capitalized software
|
| | | | 103.3 | | | | | | (35.8) | | | | | | 67.5 | | |
Trademarks
|
| | | | 38.6 | | | | | | (12.4) | | | | | | 26.2 | | |
Favorable operating leases
|
| | | | 2.1 | | | | | | (2.1) | | | | | | — | | |
Total finite-lived identifiable intangible assets
|
| | | $ | 1,571.4 | | | | | $ | (423.9) | | | | | $ | 1,147.5 | | |
Indefinite-lived Trademarks
|
| | | | 294.1 | | | | | | — | | | | | | 294.1 | | |
Total Intangible Assets
|
| | | $ | 1,865.5 | | | | | $ | (423.9) | | | | | $ | 1,441.6 | | |
|
| | |
As of December 31, 2018
|
| |||||||||||||||
| | |
Gross
|
| |
Accumulated
amortization |
| |
Net
|
| |||||||||
Customer relationships
|
| | | $ | 1,102.0 | | | | | $ | (180.4) | | | | | $ | 921.6 | | |
Developed Technology
|
| | | | 326.2 | | | | | | (70.5) | | | | | | 255.7 | | |
Capitalized software
|
| | | | 81.6 | | | | | | (17.9) | | | | | | 63.7 | | |
Trademarks
|
| | | | 38.6 | | | | | | (7.7) | | | | | | 30.9 | | |
Favorable operating leases
|
| | | | 2.1 | | | | | | (1.8) | | | | | | 0.3 | | |
Backlog
|
| | | | 139.2 | | | | | | (139.2) | | | | | | — | | |
Total finite-lived identifiable intangible assets
|
| | | $ | 1,689.7 | | | | | $ | (417.5) | | | | | $ | 1,272.2 | | |
Indefinite-lived Trademarks
|
| | | | 292.0 | | | | | | — | | | | | | 292.0 | | |
Total Intangible Assets
|
| | | $ | 1,981.7 | | | | | $ | (417.5) | | | | | $ | 1,564.2 | | |
| | |
December 31,
2019 |
| |
December 31,
2018 |
| ||||||
Term Loan due 2023
|
| | | $ | 2,070.0 | | | | | $ | 2,070.0 | | |
9.250% Senior notes due 2024
|
| | | | 750.0 | | | | | | 750.0 | | |
12.00%/13.00% PIK notes due 2022
|
| | | | 500.0 | | | | | | 500.0 | | |
ABL Revolving Credit Facility
|
| | | | 145.2 | | | | | | 245.1 | | |
10.00% notes due 2024
|
| | | | 120.0 | | | | | | — | | |
Unamortized discount and issuance costs
|
| | | | (117.9 | | | | | | (137.3) | | |
Long-term debt, net
|
| | | $ | 3,467.3 | | | | | $ | 3,427.8 | | |
| | |
Term
loan |
| |
9.250%
senior notes |
| |
PIK notes
|
| |
ABL
|
| |
10.00%
notes |
| |
Total
|
| ||||||||||||||||||
2020
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
2021
|
| | | | — | | | | | | — | | | | | | — | | | | | | 145.2 | | | | | | — | | | | | | 145.2 | | |
2022
|
| | | | — | | | | | | — | | | | | | 500.0 | | | | | | — | | | | | | — | | | | | | 500.0 | | |
2023
|
| | | | 2,070.0 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,070.0 | | |
2024
|
| | | | — | | | | | | 750.0 | | | | | | — | | | | | | — | | | | | | 120.0 | | | | | | 870.0 | | |
Total
|
| | | $ | 2,070.0 | | | | | $ | 750.0 | | | | | $ | 500.0 | | | | | $ | 145.2 | | | | | $ | 120.0 | | | | | $ | 3,585.2 | | |
| | |
Year ended
December 31, 2019 |
| |||
Operating lease cost
|
| | | $ | 49.7 | | |
Short-term and variable lease cost
|
| | | | 31.6 | | |
Total lease cost
|
| | | $ | 81.3 | | |
| | |
Year ended
December 31, 2019 |
| |||
Cash paid for amounts included in the measurement of lease liabilities: | | | | | | | |
Operating cash outflows – payments on operating leases
|
| | | $ | 51.7 | | |
Right-of-use assets obtained in exchange for new lease obligations: | | | | | | | |
Operating leases
|
| | | $ | 157.0 | | |
| | | | | |
December 31,
2019 |
| |||
Operating lease right-of-use assets
|
| |
Financial statement line item Other assets
|
| | | $ | 110.4 | | |
Operating lease liabilities
|
| | Accrued expenses and other liabilities | | | | | 35.0 | | |
Operating lease liabilities
|
| | Other long-term liabilities | | | | | 78.2 | | |
Total lease liabilities
|
| | | | | | $ | 113.2 | | |
| | |
December 31,
2019 |
| |||
Weighted Average Remaining Lease Term
|
| |
4.5 years
|
| |||
Weighted Average Discount Rate
|
| | | | 7.3% | | |
| | |
December 31,
2019 |
| |||
| | |
Operating Leases
|
| |||
2020
|
| | | $ | 43.3 | | |
2021
|
| | | | 31.6 | | |
2022
|
| | | | 24.1 | | |
2023
|
| | | | 18.0 | | |
2024
|
| | | | 10.6 | | |
Thereafter
|
| | | | 14.2 | | |
Total Lease Payments
|
| | | | 141.8 | | |
Less: Imputed Interest
|
| | | | (28.6) | | |
Present value of lease liabilities
|
| | | $ | 113.2 | | |
|
2019
|
| | | $ | 51.4 | | |
|
2020
|
| | | | 37.2 | | |
|
2021
|
| | | | 25.4 | | |
|
2022
|
| | | | 17.9 | | |
|
2023
|
| | | | 12.4 | | |
|
Thereafter
|
| | | | 19.2 | | |
|
Total noncancelable long-term leases
|
| | | $ | 163.5 | | |
| | |
U.S. plans
|
| |||||||||||||||
| | |
December 31,
2019 |
| |
December 31,
2018 |
| |
December 31,
2017 |
| |||||||||
Company defined benefit plans: | | | | | | | | | | | | | | | | | | | |
Service cost
|
| | | $ | — | | | | | $ | — | | | | | $ | 0.1 | | |
Interest cost
|
| | | | — | | | | | | — | | | | | | 0.4 | | |
Expected return on plan assets
|
| | | | — | | | | | | — | | | | | | (0.6) | | |
Net amortization
|
| | | | — | | | | | | 0.2 | | | | | | — | | |
Net periodic pension expense
|
| | | | — | | | | | | 0.2 | | | | | | (0.1) | | |
Settlement
|
| | | | — | | | | | | (0.1) | | | | | | 0.9 | | |
Defined contribution plans
|
| | | | 13.5 | | | | | | 12.7 | | | | | | 14.8 | | |
Total
|
| | | $ | 13.5 | | | | | $ | 12.8 | | | | | $ | 15.6 | | |
|
| | |
Non-U.S. plans
|
| |||||||||||||||
| | |
December 31,
2019 |
| |
December 31,
2018 |
| |
December 31,
2017 |
| |||||||||
Company defined benefit plans: | | | | | | | | | | | | | | | | | | | |
Service cost
|
| | | $ | 2.4 | | | | | $ | 2.6 | | | | | $ | 2.8 | | |
Interest cost
|
| | | | 2.4 | | | | | | 2.3 | | | | | | 2.6 | | |
Expected return on plan assets
|
| | | | (0.9) | | | | | | (0.7) | | | | | | (0.9) | | |
Net amortization
|
| | | | — | | | | | | — | | | | | | — | | |
Net periodic pension expense
|
| | | | 3.9 | | | | | | 4.2 | | | | | | 4.5 | | |
Curtailment
|
| | | | — | | | | | | (1.3) | | | | | | (1.6) | | |
Settlement
|
| | | | — | | | | | | — | | | | | | 0.1 | | |
Defined contribution plans
|
| | | | 2.8 | | | | | | 3.7 | | | | | | 2.6 | | |
Total
|
| | | $ | 6.7 | | | | | $ | 6.6 | | | | | $ | 5.6 | | |
| | |
U.S. plans
|
| |||||||||
| | |
December 31,
2019 |
| |
December 31,
2018 |
| ||||||
Projected benefit obligation, beginning
|
| | | $ | 0.9 | | | | | $ | 4.4 | | |
Service cost
|
| | | | — | | | | | | — | | |
Interest cost
|
| | | | — | | | | | | — | | |
Actuarial loss
|
| | | | — | | | | | | (0.6) | | |
Benefits paid
|
| | | | — | | | | | | (0.2) | | |
Acquisition/Divestiture
|
| | | | — | | | | | | — | | |
Settlements
|
| | | | — | | | | | | (2.7) | | |
Projected benefit obligation, ending
|
| | | $ | 0.9 | | | | | $ | 0.9 | | |
Fair value of plan assets, beginning
|
| | | | — | | | | | | 3.7 | | |
Employer contributions
|
| | | | 0.1 | | | | | | 0.1 | | |
Benefits paid
|
| | | | (0.1) | | | | | | (0.2) | | |
Acquisition/Divestiture
|
| | | | — | | | | | | — | | |
Settlements
|
| | | | — | | | | | | (2.7) | | |
Foreign currency translation and other
|
| | | | — | | | | | | (0.9) | | |
Fair value of plan assets, ending
|
| | | $ | — | | | | | $ | — | | |
Net amount recognized in the balance sheet
|
| | | $ | (0.9) | | | | | $ | (0.9) | | |
Amounts recognized in the balance sheet: | | | | | | | | | | | | | |
Noncurrent asset
|
| | | $ | — | | | | | $ | — | | |
Current liability
|
| | | | (0.1) | | | | | | — | | |
Noncurrent liability
|
| | | | (0.8) | | | | | | (0.9) | | |
Net amount recognized in the balance sheet
|
| | | $ | (0.9) | | | | | $ | (0.9) | | |
Accumulated other comprehensive loss
|
| | | $ | — | | | | | $ | — | | |
|
| | |
Non-U.S. plans
|
| |||||||||
| | |
December 31,
2019 |
| |
December 31,
2018 |
| ||||||
Projected benefit obligation, beginning
|
| | | $ | 75.5 | | | | | $ | 76.7 | | |
Service cost
|
| | | | 2.4 | | | | | | 2.6 | | |
Interest cost
|
| | | | 2.4 | | | | | | 2.3 | | |
Actuarial loss
|
| | | | 13.4 | | | | | | 4.8 | | |
Benefits paid
|
| | | | (2.4) | | | | | | (2.2) | | |
Participant contributions
|
| | | | 0.3 | | | | | | 0.3 | | |
Acquisition/Divestiture
|
| | | | — | | | | | | — | | |
Settlements
|
| | | | — | | | | | | (0.1) | | |
Curtailments
|
| | | | — | | | | | | (4.1) | | |
Foreign currency translation and other
|
| | | | (1.0) | | | | | | (4.8) | | |
Projected benefit obligation, ending
|
| | | $ | 90.6 | | | | | $ | 75.5 | | |
Fair value of plan assets, beginning
|
| | | | 13.7 | | | | | | 14.3 | | |
Actual return on plan assets
|
| | | | 1.0 | | | | | | 0.2 | | |
Employer contributions
|
| | | | 2.4 | | | | | | 2.1 | | |
Participants’ contributions
|
| | | | 0.3 | | | | | | 0.3 | | |
Benefits paid
|
| | | | (2.4) | | | | | | (2.2) | | |
Acquisition/Divestiture
|
| | | | — | | | | | | — | | |
Settlements
|
| | | | — | | | | | | (0.1) | | |
Foreign currency translation and other
|
| | | | (0.1) | | | | | | (0.9) | | |
Fair value of plan assets, ending
|
| | | $ | 14.9 | | | | | $ | 13.7 | | |
Net amount recognized in the balance sheet
|
| | | $ | (75.7) | | | | | $ | (61.8) | | |
Amounts recognized in the balance sheet: | | | | | | | | | | | | | |
Noncurrent asset
|
| | | $ | 0.5 | | | | | $ | 0.6 | | |
Current liability
|
| | | | (2.2) | | | | | | (1.8) | | |
Noncurrent liability
|
| | | | (74.0) | | | | | | (60.6) | | |
Net amount recognized in the balance sheet
|
| | | $ | (75.7) | | | | | $ | (61.8) | | |
Pretax accumulated other comprehensive (income) loss
|
| | | $ | 15.0 | | | | | $ | 1.6 | | |
| | |
December 31,
2019 |
| |
December 31,
2018 |
| ||||||
Projected benefit obligation
|
| | | $ | 83.7 | | | | | $ | 69.5 | | |
Accumulated benefit obligation
|
| | | | 75.5 | | | | | | 64.1 | | |
Fair value of plan assets
|
| | | | 8.2 | | | | | | 7.1 | | |
| | |
U.S. plans
|
| |
Non-U.S. plans
|
| ||||||||||||||||||
| | |
December 31,
2019 |
| |
December 31,
2018 |
| |
December 31,
2019 |
| |
December 31,
2018 |
| ||||||||||||
Net pension expense | | | | | | | | | | | | | | | | | | | | | | | | | |
Discount rate
|
| | | | 4.30% | | | | | | 3.35% | | | | | | 3.24% | | | | | | 3.27% | | |
Expected return on plan assets
|
| | | | —% | | | | | | —% | | | | | | 6.59% | | | | | | 5.17% | | |
Rate of compensation increase
|
| | | | —% | | | | | | —% | | | | | | 3.36% | | | | | | 3.04% | | |
Benefit obligations | | | | | | | | | | | | | | | | | | | | | | | | | |
Discount rate
|
| | | | 2.95% | | | | | | 4.30% | | | | | | 2.51% | | | | | | 3.24% | | |
Rate of compensation increase
|
| | | | —% | | | | | | —% | | | | | | 3.46% | | | | | | 3.36% | | |
| | |
Non-U.S. plans
|
| |||||||||
| | |
December 31,
2019 |
| |
December 31,
2018 |
| ||||||
Equity securities
|
| | | | —% | | | | | | —% | | |
Debt securities
|
| | | | 28% | | | | | | 30% | | |
Insurance arrangements
|
| | | | 53% | | | | | | 50% | | |
Cash
|
| | | | —% | | | | | | —% | | |
Other
|
| | | | 19% | | | | | | 20% | | |
Total
|
| | | | 100% | | | | | | 100% | | |
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| |
Percentage
|
| |||||||||||||||
December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity securities
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | | —% | | |
Debt securities
|
| | | | — | | | | | | 4.1 | | | | | | — | | | | | | 4.1 | | | | | | 28% | | |
Insurance arrangements
|
| | | | — | | | | | | — | | | | | | 7.8 | | | | | | 7.8 | | | | | | 53% | | |
Cash
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | —% | | |
Other
|
| | | | 0.5 | | | | | | — | | | | | | 2.4 | | | | | | 2.9 | | | | | | 19% | | |
Total
|
| | | $ | 0.5 | | | | | $ | 4.1 | | | | | $ | 10.2 | | | | | $ | 14.8 | | | | | | 100% | | |
December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity securities
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | | —% | | |
Debt securities
|
| | | | — | | | | | | 4.1 | | | | | | — | | | | | | 4.1 | | | | | | 30% | | |
Insurance arrangements
|
| | | | — | | | | | | — | | | | | | 6.8 | | | | | | 6.8 | | | | | | 50% | | |
Cash
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | —% | | |
Other
|
| | | | — | | | | | | 0.6 | | | | | | 2.2 | | | | | | 2.8 | | | | | | 20% | | |
Total
|
| | | $ | — | | | | | $ | 4.7 | | | | | $ | 9.0 | | | | | $ | 13.7 | | | | | | 100% | | |
| | |
Year ended
|
| |||||||||
| | |
December 31,
2019 |
| |
December 31,
2018 |
| ||||||
Level 3, beginning
|
| | | $ | 9.0 | | | | | $ | 8.8 | | |
Gains (losses) on assets held
|
| | | | 0.7 | | | | | | (0.3) | | |
Purchases, sales and settlements, net
|
| | | | 0.5 | | | | | | 0.5 | | |
Level 3, ending
|
| | | $ | 10.2 | | | | | $ | 9.0 | | |
|
| | |
December 31,
2019 |
| |
December 31,
2018 |
| |
December 31,
2017 |
| |||||||||
United States
|
| | | $ | (201.1) | | | | | $ | (351.4) | | | | | $ | (427.9) | | |
Non-U.S.(1)
|
| | | | 96.8 | | | | | | 80.4 | | | | | | 20.8 | | |
Total loss before income taxes
|
| | | $ | (104.3) | | | | | $ | (271.0) | | | | | $ | (407.1) | | |
| | |
December 31,
2019 |
| |
December 31,
2018 |
| |
December 31,
2017 |
| |||||||||
Current: | | | | | | | | | | | | | | | | | | | |
Federal
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | |
State and local
|
| | | | (1.4) | | | | | | 6.0 | | | | | | 4.5 | | |
Non-U.S.
|
| | | | 51.0 | | | | | | 83.8 | | | | | | 61.7 | | |
Deferred: | | | | | | | | | | | | | | | | | | | |
Federal
|
| | | | (0.4) | | | | | | (8.4) | | | | | | (46.3) | | |
State and local
|
| | | | (1.8) | | | | | | (2.7) | | | | | | (7.0) | | |
Non-U.S.
|
| | | | (10.9) | | | | | | (28.8) | | | | | | (32.6) | | |
Income tax expense (benefit)
|
| | | $ | 36.5 | | | | | $ | 49.9 | | | | | $ | (19.7) | | |
| | |
December 31,
2019 |
| |
December 31,
2018 |
| |
December 31,
2017 |
| |||||||||
Taxes at U.S. statutory rate (21%)(1)
|
| | | $ | (21.9) | | | | | $ | (56.9) | | | | | $ | (142.8) | | |
State and local taxes, net of federal tax benefit
|
| | | | (4.0) | | | | | | (6.0) | | | | | | (12.7) | | |
Non-U.S. rate differential
|
| | | | 4.3 | | | | | | 4.2 | | | | | | (0.6) | | |
Non-U.S. tax holidays
|
| | | | (4.6) | | | | | | (1.8) | | | | | | 2.1 | | |
Uncertain tax positions
|
| | | | 16.0 | | | | | | 21.5 | | | | | | 3.5 | | |
Tax Cuts and Jobs Act of 2017
|
| | | | — | | | | | | (14.1) | | | | | | 23.0 | | |
Global intangible low-tax income inclusion
|
| | | | 13.8 | | | | | | 4.2 | | | | | | — | | |
Change in valuation allowances
|
| | | | 17.0 | | | | | | 104.7 | | | | | | 93.4 | | |
Taxes on undistributed foreign earnings and withholding/ dividend taxes
|
| | | | 8.5 | | | | | | (2.3) | | | | | | 16.0 | | |
U.S. implications of non-U.S. earnings
|
| | | | (1.8) | | | | | | 12.3 | | | | | | 2.3 | | |
R&D deduction/ credit
|
| | | | (2.2) | | | | | | (11.8) | | | | | | (8.9) | | |
Non-taxable settlement of contingent consideration
|
| | | | — | | | | | | (3.2) | | | | | | (6.3) | | |
Other permanent differences
|
| | | | 6.7 | | | | | | 10.5 | | | | | | 0.4 | | |
Impact of rate changes in non-U.S. jurisdictions
|
| | | | 4.8 | | | | | | (1.3) | | | | | | (13.2) | | |
Outside basis difference on divestiture
|
| | | | — | | | | | | (6.6) | | | | | | 19.1 | | |
Non-deductible transaction costs
|
| | | | — | | | | | | — | | | | | | (5.9) | | |
Other(2)
|
| | | | (0.1) | | | | | | (3.5) | | | | | | 10.9 | | |
Total income tax expense (benefit)
|
| | | $ | 36.5 | | | | | $ | 49.9 | | | | | $ | (19.7) | | |
|
| | |
December 31,
2019 |
| |
December 31,
2018 |
| ||||||
Deferred tax assets | | | | | | | | | | | | | |
Net operating losses and capital losses
|
| | | $ | 138.3 | | | | | $ | 168.2 | | |
Accrued liabilities
|
| | | | 30.0 | | | | | | 35.1 | | |
Employee compensation and benefits
|
| | | | 13.7 | | | | | | 16.8 | | |
Pensions
|
| | | | 13.3 | | | | | | 11.0 | | |
Business interest deduction limitation
|
| | | | 98.9 | | | | | | 57.3 | | |
Inventory
|
| | | | 20.4 | | | | | | 15.8 | | |
Litigation Reserve
|
| | | | — | | | | | | 14.9 | | |
Lease Liability
|
| | | | 19.8 | | | | | | — | | |
Bad Debts
|
| | | | 6.3 | | | | | | — | | |
Other
|
| | | | 0.3 | | | | | | 13.6 | | |
Total deferred tax assets, before valuation allowances
|
| | | $ | 341.0 | | | | | $ | 332.7 | | |
Valuation allowances
|
| | | $ | (205.7) | | | | | $ | (208.0) | | |
Deferred tax assets, net of valuation allowances
|
| | | $ | 135.3 | | | | | $ | 124.7 | | |
Deferred tax liabilities | | | | | | | | | | | | | |
Intangibles & Goodwill
|
| | | | (106.9) | | | | | | (128.9) | | |
Undistributed foreign earnings
|
| | | | (45.1) | | | | | | (46.6) | | |
Property, plant & equipment
|
| | | | (31.2) | | | | | | (37.7) | | |
Debt issuance costs
|
| | | | (46.1) | | | | | | (56.4) | | |
Lease Right of Use Asset
|
| | | | (18.8) | | | | | | — | | |
Other
|
| | | | (2.9) | | | | | | (4.7) | | |
Total deferred tax liabilities
|
| | | $ | (251.0) | | | | | $ | (274.3) | | |
Net deferred income tax liabilities
|
| | | $ | (115.7) | | | | | $ | (149.6) | | |
| | |
December 31,
2019 |
| |
December 31,
2018 |
| |
December 31,
2017 |
| |||||||||
Beginning balance
|
| | | $ | 38.4 | | | | | $ | 22.0 | | | | | $ | 20.9 | | |
Additions for the current year tax positions
|
| | | | 10.2 | | | | | | 11.6 | | | | | | 3.9 | | |
Additions for prior year tax positions
|
| | | | 5.5 | | | | | | 9.6 | | | | | | 2.7 | | |
Reductions for prior year tax positions
|
| | | | (1.0) | | | | | | (4.8) | | | | | | (1.9) | | |
Reductions for settlements with tax authorities
|
| | | | — | | | | | | — | | | | | | (3.4) | | |
Reductions for expirations of statute of limitations
|
| | | | (0.5) | | | | | | — | | | | | | (0.2) | | |
Ending balance
|
| | | $ | 52.6 | | | | | $ | 38.4 | | | | | $ | 22.0 | | |
| | |
December 31,
2019 |
| |
December 31,
2018 |
| |
December 31,
2017 |
| |||||||||
Research and development expense
|
| | | $ | 198.5 | | | | | $ | 165.3 | | | | | $ | 166.5 | | |
Depreciation expense
|
| | | | 57.1 | | | | | | 60.4 | | | | | | 61.2 | | |
Rent expense
|
| | | | 81.4 | | | | | | 80.4 | | | | | | 61.1 | | |
Advertising expense
|
| | | | 30.3 | | | | | | 35.2 | | | | | | 32.6 | | |
| | |
December 31,
2019 |
| |
December 31,
2018 |
| ||||||
Deferred revenue
|
| | | $ | 160.9 | | | | | $ | 170.5 | | |
Accrued payroll and other employee compensation
|
| | | | 145.4 | | | | | | 133.6 | | |
Product warranty
|
| | | | 43.2 | | | | | | 44.9 | | |
Litigation reserve (see Note 18)
|
| | | | 92.9 | | | | | | 60.0 | | |
Other (includes liabilities related to lease obligations, see note 8)
|
| | | | 425.3 | | | | | | 395.3 | | |
Total
|
| | | $ | 867.7 | | | | | $ | 804.3 | | |
| | |
Year ended
|
| |||||||||||||||
| | |
December 31,
2019 |
| |
December 31,
2018 |
| |
December 31,
2017 |
| |||||||||
Beginning balance
|
| | | $ | 36.0 | | | | | $ | 28.3 | | | | | $ | 18.0 | | |
Provision charged to expense
|
| | | | 59.6 | | | | | | 55.3 | | | | | | 55.3 | | |
Deductions
|
| | | | (43.6) | | | | | | (47.6) | | | | | | (45.0) | | |
Ending balance
|
| | | $ | 52.0 | | | | | $ | 36.0 | | | | | $ | 28.3 | | |
| | |
December 31,
2019 |
| |
December 31,
2018 |
| |
December 31,
2017 |
| |||||||||
Beginning balance
|
| | | $ | 30.6 | | | | | $ | 15.3 | | | | | $ | 1.2 | | |
Provision charged to expense
|
| | | | 21.3 | | | | | | 20.9 | | | | | | 14.4 | | |
Write-offs and other
|
| | | | 7.8 | | | | | | (5.6) | | | | | | (0.3) | | |
Ending balance
|
| | | $ | 59.7 | | | | | $ | 30.6 | | | | | $ | 15.3 | | |
| | |
December 31,
2019 |
| |
December 31,
2018 |
| |
December 31,
2017 |
| |||||||||
Beginning balance
|
| | | $ | 208.0 | | | | | $ | 108.5 | | | | | $ | 89.0 | | |
Additions (reductions) charged to expense
|
| | | | 17.0 | | | | | | 105.1 | | | | | | 1.9 | | |
Additions (reductions) charged to other accounts
|
| | | | (19.3) | | | | | | (5.6) | | | | | | 17.6 | | |
Ending balance
|
| | | $ | 205.7 | | | | | $ | 208.0 | | | | | $ | 108.5 | | |
| | |
December 31,
2019 |
| |
December 31,
2018 |
| |
December 31,
2017 |
| |||||||||
Sales to Platinum affiliates
|
| | | $ | 0.4 | | | | | $ | 0.2 | | | | | $ | — | | |
Purchases from Platinum affiliates
|
| | | | 65.0 | | | | | | 56.6 | | | | | | 5.0 | | |
| | |
December 31,
2019 |
| |
December 31,
2018 |
| ||||||
Accounts payable
|
| | | $ | 2.4 | | | | | $ | 0.5 | | |
| | |
December 31,
2019 |
| |
December 31,
2018 |
| |
December 31,
2017 |
| |||||||||
Information technology services
|
| | | $ | 0.3 | | | | | $ | 1.4 | | | | | $ | 19.9 | | |
Medical insurance
|
| | | | — | | | | | | — | | | | | | 3.6 | | |
Other programs
|
| | | | — | | | | | | 0.4 | | | | | | 1.1 | | |
Shared service centers
|
| | | | — | | | | | | — | | | | | | 13.5 | | |
General corporate costs
|
| | | | 0.1 | | | | | | 0.8 | | | | | | 0.6 | | |
| | |
December 31,
2019 |
| |
December 31,
2018 |
| |
December 31,
2017 |
| |||||||||
Sales to Emerson affiliates
|
| | | $ | 3.1 | | | | | $ | 3.8 | | | | | $ | 5.2 | | |
Purchases from Emerson affiliates
|
| | | | 33.8 | | | | | | 32.0 | | | | | | 42.8 | | |
Lease payments to Emerson affiliates
|
| | | | 1.0 | | | | | | 1.5 | | | | | | 1.5 | | |
| | |
December 31,
2019 |
| |
December 31,
2018 |
| ||||||
Receivables
|
| | | $ | 0.5 | | | | | $ | 0.6 | | |
Accounts payable
|
| | | | 3.7 | | | | | | 4.8 | | |
| | |
December 31, 2019
|
| |
December 31, 2018
|
| ||||||||||||||||||
| | |
Fair value
|
| |
Carrying value
|
| |
Fair value
|
| |
Carrying value
|
| ||||||||||||
Term Loan due 2023
|
| | | $ | 1,985.7 | | | | | $ | 1,990.7 | | | | | $ | 1,796.2 | | | | | $ | 1,973.8 | | |
9.250% Notes due 2024
|
| | | | 780.0 | | | | | | 726.4 | | | | | | 686.8 | | | | | | 722.9 | | |
12.00%/13.00% Senior PIK Toggle Notes due 2022
|
| | | | 507.3 | | | | | | 490.1 | | | | | | 462.0 | | | | | | 485.0 | | |
10.00% Notes due 2024
|
| | | | 122.0 | | | | | | 114.8 | | | | | | — | | | | | | — | | |
ABL Revolving Credit Facility due 2021
|
| | | | 145.2 | | | | | | 145.2 | | | | | | 245.1 | | | | | | 245.1 | | |
| | |
December 31,
2019 |
| |
December 31,
2018 |
| |
December 31,
2017 |
| |||||||||
Amortization of intangibles (excluding software)
|
| | | $ | 129.2 | | | | | $ | 146.2 | | | | | $ | 219.4 | | |
Restructuring costs (see Note 5)
|
| | | | 20.7 | | | | | | 46.2 | | | | | | 41.6 | | |
Foreign currency loss (gain), net
|
| | | | (1.5) | | | | | | (5.4) | | | | | | 11.2 | | |
Contingent consideration
|
| | | | — | | | | | | (10.0) | | | | | | (17.9) | | |
Other, net
|
| | | | (2.3) | | | | | | 1.8 | | | | | | 0.1 | | |
Total
|
| | | $ | 146.1 | | | | | $ | 178.8 | | | | | $ | 254.4 | | |
|
| | |
December 31,
2019 |
| |
December 31,
2018 |
| |
December 31,
2017 |
| |||||||||
Foreign currency translation, beginning
|
| | | $ | 43.2 | | | | | $ | 133.8 | | | | | $ | (8.3) | | |
Other comprehensive income (loss)
|
| | | | (10.3) | | | | | | (90.6) | | | | | | 142.1 | | |
Foreign currency translation, ending
|
| | | | 32.9 | | | | | | 43.2 | | | | | | 133.8 | | |
Pension, beginning
|
| | | | (1.4) | | | | | | (0.3) | | | | | | (2.2) | | |
Actuarial (loss) gain deferred during the period, net of income taxes
|
| | | | (13.4) | | | | | | (1.1) | | | | | | 1.9 | | |
Amortization of deferred losses into earnings
|
| | | | — | | | | | | — | | | | | | — | | |
Pension, ending
|
| | | | (14.8) | | | | | | (1.4) | | | | | | (0.3) | | |
Accumulated other comprehensive income (loss)
|
| | | $ | 18.1 | | | | | $ | 41.8 | | | | | $ | 133.5 | | |
Sales
|
| |
December 31,
2019 |
| |
December 31,
2018 |
| |
December 31,
2017 |
| |||||||||
Americas
|
| | | $ | 2,251.4 | | | | | $ | 2,175.6 | | | | | $ | 1,886.7 | | |
Asia Pacific
|
| | | | 1,378.0 | | | | | | 1,346.9 | | | | | | 1,239.5 | | |
Europe, Middle East & Africa
|
| | | | 976.0 | | | | | | 938.0 | | | | | | 918.1 | | |
| | | | | 4,605.4 | | | | | | 4,460.5 | | | | | | 4,044.3 | | |
Eliminations
|
| | | | (174.2) | | | | | | (174.9) | | | | | | (164.9) | | |
Total
|
| | | $ | 4,431.2 | | | | | $ | 4,285.6 | | | | | $ | 3,879.4 | | |
|
Earnings (loss) from continuing operations before income taxes
|
| |
December 31,
2019 |
| |
December 31,
2018(1) |
| |
December 31,
2017(1) |
| |||||||||
Americas
|
| | | $ | 354.3 | | | | | $ | 301.0 | | | | | $ | 241.8 | | |
Asia Pacific
|
| | | | 150.0 | | | | | | 136.6 | | | | | | 64.2 | | |
Europe, Middle East & Africa
|
| | | | 64.3 | | | | | | 29.8 | | | | | | 45.4 | | |
| | | | | 568.6 | | | | | | 467.4 | | | | | | 351.4 | | |
Corporate and other
|
| | | | (362.5) | | | | | | (449.6) | | | | | | (379.2) | | |
Interest expense, net
|
| | | | (310.4) | | | | | | (288.8) | | | | | | (379.3) | | |
Total
|
| | | $ | (104.3) | | | | | $ | (271.0) | | | | | $ | (407.1) | | |
Total assets
|
| |
December 31,
2019 |
| |
December 31,
2018 |
| ||||||
Americas
|
| | | $ | 2,296.4 | | | | | $ | 2,410.1 | | |
Asia Pacific
|
| | | | 1,152.2 | | | | | | 1,165.5 | | |
Europe, Middle East & Africa
|
| | | | 947.5 | | | | | | 980.3 | | |
| | | | | 4,396.1 | | | | | | 4,555.9 | | |
Corporate and other
|
| | | | 261.3 | | | | | | 238.5 | | |
Total
|
| | | $ | 4,657.4 | | | | | $ | 4,794.4 | | |
|
Intersegment sales
|
| |
December 31,
2019 |
| |
December 31,
2018 |
| |
December 31,
2017 |
| |||||||||
Americas
|
| | | $ | 22.3 | | | | | $ | 29.9 | | | | | $ | 25.3 | | |
Asia Pacific
|
| | | | 100.0 | | | | | | 102.7 | | | | | | 90.5 | | |
Europe, Middle East & Africa
|
| | | | 51.9 | | | | | | 42.3 | | | | | | 49.1 | | |
Total
|
| | | $ | 174.2 | | | | | $ | 174.9 | | | | | $ | 164.9 | | |
|
Depreciation and amortization
|
| |
December 31,
2019 |
| |
December 31,
2018 |
| |
December 31,
2017 |
| |||||||||
Americas
|
| | | $ | 122.2 | | | | | $ | 130.7 | | | | | $ | 178.1 | | |
Asia Pacific
|
| | | | 35.4 | | | | | | 37.8 | | | | | | 67.1 | | |
Europe, Middle East & Africa
|
| | | | 24.0 | | | | | | 35.8 | | | | | | 39.9 | | |
Corporate and other
|
| | | | 21.3 | | | | | | 12.7 | | | | | | 0.9 | | |
Total
|
| | | $ | 202.9 | | | | | $ | 217.0 | | | | | $ | 286.0 | | |
|
Capital expenditures
|
| |
December 31,
2019 |
| |
December 31,
2018 |
| |
December 31,
2017 |
| |||||||||
Americas
|
| | | $ | 23.5 | | | | | $ | 23.6 | | | | | $ | 13.8 | | |
Asia Pacific
|
| | | | 11.3 | | | | | | 14.5 | | | | | | 8.9 | | |
Europe, Middle East & Africa
|
| | | | 10.0 | | | | | | 21.7 | | | | | | 13.4 | | |
Corporate and other
|
| | | | 2.8 | | | | | | 4.8 | | | | | | 0.6 | | |
Total
|
| | | $ | 47.6 | | | | | $ | 64.6 | | | | | $ | 36.7 | | |
| | |
December 31,
2019 |
| |
December 31,
2018 |
| |
December 31,
2017 |
| |||||||||
United States and Canada
|
| | | $ | 2,017.4 | | | | | $ | 1,942.3 | | | | | $ | 1,692.0 | | |
Europe
|
| | | | 763.9 | | | | | | 740.8 | | | | | | 704.9 | | |
Asia
|
| | | | 1,285.6 | | | | | | 1,264.9 | | | | | | 1,159.7 | | |
Latin America
|
| | | | 213.0 | | | | | | 195.9 | | | | | | 174.4 | | |
Middle East/Africa
|
| | | | 151.3 | | | | | | 141.7 | | | | | | 148.4 | | |
Total
|
| | | $ | 4,431.2 | | | | | $ | 4,285.6 | | | | | $ | 3,879.4 | | |
Sales
|
| |
December 31,
2019 |
| |
December 31,
2018(2) |
| |
December 31,
2017(2) |
| |||||||||
Critical infrastructure & solutions
|
| | | $ | 2,632.6 | | | | | $ | 2,451.8 | | | | | $ | 2,136.5 | | |
Service & software solutions(3)
|
| | | | 1,298.9 | | | | | | 1,276.1 | | | | | | 1,215.9 | | |
I.T. and Edge infrastructure
|
| | | | 499.7 | | | | | | 557.7 | | | | | | 527.0 | | |
Total
|
| | | $ | 4,431.2 | | | | | $ | 4,285.6 | | | | | $ | 3,879.4 | | |