Annual Reports

 
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  • 10-Q (Aug 3, 2017)
  • 10-Q (May 4, 2017)
  • 10-Q (Nov 3, 2016)
  • 10-Q (Aug 4, 2016)
  • 10-Q (May 5, 2016)
  • 10-Q (Nov 2, 2015)

 
8-K

 
Other

Ecolab 10-Q 2017

Documents found in this filing:

  1. 10-Q
  2. Ex-15.1
  3. Ex-31.1
  4. Ex-31.2
  5. Ex-32.1
  6. Ex-32.1
ecl_Current folio_10Q

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 

FORM 10-Q

 

(Mark One)

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended March 31, 2017

 

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from              to              

 

Commission File No. 1-9328

 

ECOLAB INC.

(Exact name of registrant as specified in its charter)

 

 

 

 

Delaware

 

41-0231510

(State or other jurisdiction of

 

(I.R.S. Employer

incorporation or organization)

 

Identification No.)

 

1 Ecolab Place, St. Paul, Minnesota  55102

(Address of principal executive offices)(Zip Code)

 

1-800-232-6522

(Registrant’s telephone number, including area code)

 

(Not applicable)

(Former name, former address and former fiscal year,

if changed since last report)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes  No 

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulations S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes   No 

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

 

 

 

Large accelerated filer

 

Accelerated filer

 

 

 

Non-accelerated filer    (Do not check if a smaller reporting company)

 

Smaller reporting company

 

 

 

Emerging growth company

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes   No

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of March 31, 2017.

 

290,045,399 shares of common stock, par value $1.00 per share.

 

 

 

 


 

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

 

CONSOLIDATED STATEMENT OF INCOME

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter Ended 

 

 

 

March 31

 

(millions, except per share amounts)

 

2017

    

2016

 

 

 

 

 

 

 

 

 

 

Net sales

 

 

$ 3,161.6

 

 

 

$ 3,097.4

 

Operating expenses

 

 

 

 

 

 

 

 

Cost of sales (including special charges of $1.5 in 2017)

 

 

1,691.5

 

 

 

1,631.4

 

Selling, general and administrative expenses

 

 

1,090.6

 

 

 

1,088.2

 

Special (gains) and charges

 

 

6.2

 

 

 

6.3

 

Operating income

 

 

373.3

 

 

 

371.5

 

Interest expense, net

 

 

62.5

 

 

 

66.1

 

Income before income taxes

 

 

310.8

 

 

 

305.4

 

Provision for income taxes

 

 

54.0

 

 

 

73.4

 

Net income including noncontrolling interest

 

 

256.8

 

 

 

232.0

 

Net income attributable to noncontrolling interest

 

 

3.3

 

 

 

1.2

 

Net income attributable to Ecolab

 

 

$ 253.5

 

 

 

$ 230.8

 

 

 

 

 

 

 

 

 

 

Earnings attributable to Ecolab per common share

 

 

 

 

 

 

 

 

Basic

 

 

$ 0.87

 

 

 

$ 0.78

 

Diluted

 

 

$ 0.86

 

 

 

$ 0.77

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

 

 

$ 0.370

 

 

 

$ 0.350

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding

 

 

 

 

 

 

 

 

Basic

 

 

290.6

 

 

 

294.4

 

Diluted

 

 

295.0

 

 

 

298.3

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of the consolidated financial statements.

 

 

 

2


 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter Ended 

 

 

 

March 31

 

(millions)

    

2017

    

2016

 

 

 

 

 

 

 

 

 

 

Net income including noncontrolling interest

 

 

$ 256.8

 

 

 

$ 232.0

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss), net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

 

 

 

 

 

 

Foreign currency translation

 

 

81.2

 

 

 

(96.3)

 

Gain (loss) on net investment hedges

 

 

2.8

 

 

 

(15.0)

 

 

 

 

84.0

 

 

 

(111.3)

 

 

 

 

 

 

 

 

 

 

Derivatives and hedging instruments

 

 

(9.2)

 

 

 

(10.5)

 

 

 

 

 

 

 

 

 

 

Pension and postretirement benefits

 

 

 

 

 

 

 

 

Amortization of net actuarial loss and prior service costs included in

 

 

 

 

 

 

 

 

net periodic pension and postretirement costs

 

 

3.3

 

 

 

5.6

 

 

 

 

3.3

 

 

 

5.6

 

 

 

 

 

 

 

 

 

 

Subtotal

 

 

78.1

 

 

 

(116.2)

 

 

 

 

 

 

 

 

 

 

Total comprehensive income, including noncontrolling interest

 

 

334.9

 

 

 

115.8

 

Comprehensive income attributable to noncontrolling interest

 

 

4.5

 

 

 

4.6

 

Comprehensive income attributable to Ecolab

 

 

$ 330.4

 

 

 

$ 111.2

 

 

 

The accompanying notes are an integral part of the consolidated financial statements.

 

3


 

CONSOLIDATED BALANCE SHEET

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31

 

December 31

(millions, except shares and per share amounts)

    

2017

 

2016

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

$ 212.1

 

 

 

$ 327.4

Accounts receivable, net

 

 

2,358.0

 

 

 

2,341.2

Inventories

 

 

1,428.3

 

 

 

1,319.4

Other current assets

 

 

308.9

 

 

 

291.4

Total current assets

 

 

4,307.3

 

 

 

4,279.4

Property, plant and equipment, net

 

 

3,424.9

 

 

 

3,365.0

Goodwill

 

 

6,947.8

 

 

 

6,383.0

Other intangible assets, net

 

 

4,086.0

 

 

 

3,817.8

Other assets

 

 

457.0

 

 

 

485.0

Total assets

 

 

$ 19,223.0

 

 

 

$ 18,330.2

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

Short-term debt

 

 

$ 1,699.4

 

 

 

$ 541.3

Accounts payable

 

 

1,039.3

 

 

 

983.2

Compensation and benefits

 

 

463.4

 

 

 

516.3

Income taxes

 

 

95.2

 

 

 

87.4

Other current liabilities

 

 

908.0

 

 

 

891.2

Total current liabilities

 

 

4,205.3

 

 

 

3,019.4

Long-term debt

 

 

5,841.6

 

 

 

6,145.7

Postretirement health care and pension benefits

 

 

1,014.4

 

 

 

1,019.2

Deferred income taxes

 

 

1,076.2

 

 

 

970.2

Other liabilities

 

 

207.0

 

 

 

204.8

Total liabilities

 

 

12,344.5

 

 

 

11,359.3

 

 

 

 

 

 

 

 

Equity (a)

 

 

 

 

 

 

 

Common stock

 

 

353.5

 

 

 

352.6

Additional paid-in capital

 

 

5,284.3

 

 

 

5,270.8

Retained earnings

 

 

7,123.1

 

 

 

6,975.0

Accumulated other comprehensive loss

 

 

(1,636.1)

 

 

 

(1,712.9)

Treasury stock

 

 

(4,315.4)

 

 

 

(3,984.4)

Total Ecolab shareholders’ equity

 

 

6,809.4

 

 

 

6,901.1

Noncontrolling interest

 

 

69.1

 

 

 

69.8

Total equity

 

 

6,878.5

 

 

 

6,970.9

Total liabilities and equity

 

 

$ 19,223.0

 

 

 

$ 18,330.2

 

(a)

Common stock, 800.0 million shares authorized, $1.00 par value per share, 290.0 million shares outstanding at March 31, 2017 and 291.8 million shares outstanding at December 31, 2016. Shares outstanding are net of treasury stock.

 

The accompanying notes are an integral part of the consolidated financial statements.

 

4


 

CONSOLIDATED STATEMENT OF CASH FLOWS

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter Ended 

 

 

 

 

March 31

 

(millions)

 

 

2017

 

2016

 

 

    

 

 

 

 

 

 

 

 

OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

Net income including noncontrolling interest

 

 

 

$ 256.8

 

 

 

$ 232.0

 

Adjustments to reconcile net income to cash provided by operating activities:

 

 

 

 

 

 

 

 

 

Depreciation

 

 

 

142.2

 

 

 

139.6

 

Amortization

 

 

 

73.8

 

 

 

72.6

 

Deferred income taxes

 

 

 

3.2

 

 

 

41.1

 

Share-based compensation expense

 

 

 

30.9

 

 

 

29.1

 

Excess tax benefits from share-based payment arrangements

 

 

 

 -

 

 

 

(6.7)

 

Pension and postretirement plan contributions

 

 

 

(23.0)

 

 

 

(24.0)

 

Pension and postretirement plan expense

 

 

 

8.8

 

 

 

14.2

 

Restructuring charges, net of cash paid

 

 

 

(6.2)

 

 

 

(13.7)

 

Other, net

 

 

 

4.7

 

 

 

7.5

 

Changes in operating assets and liabilities, net of effect of acquisitions:

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

 

76.3

 

 

 

113.3

 

Inventories

 

 

 

(67.5)

 

 

 

(1.2)

 

Other assets

 

 

 

(13.7)

 

 

 

(5.4)

 

Accounts payable

 

 

 

12.9

 

 

 

(58.2)

 

Other liabilities

 

 

 

(73.5)

 

 

 

(67.7)

 

Cash provided by operating activities

 

 

 

425.7

 

 

 

472.5

 

 

 

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

 

(152.0)

 

 

 

(140.1)

 

Capitalized software expenditures

 

 

 

(15.5)

 

 

 

(8.6)

 

Property and other assets sold

 

 

 

0.5

 

 

 

7.3

 

Acquisitions and investments in affiliates, net of cash acquired

 

 

 

(826.6)

 

 

 

(9.5)

 

Deposit into acquisition related escrow

 

 

 

(1.7)

 

 

 

 -

 

Restricted cash activity

 

 

 

53.8

 

 

 

 -

 

Cash used for investing activities

 

 

 

(941.5)

 

 

 

(150.9)

 

 

 

 

 

 

 

 

 

 

 

FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

Net issuances (repayments) of commercial paper and notes payable

 

 

 

858.8

 

 

 

(329.6)

 

Long-term debt borrowings

 

 

 

 -

 

 

 

794.1

 

Long-term debt repayments

 

 

 

(0.4)

 

 

 

(125.7)

 

Reacquired shares

 

 

 

(374.5)

 

 

 

(389.9)

 

Dividends paid

 

 

 

(113.2)

 

 

 

(108.0)

 

Exercise of employee stock options

 

 

 

25.7

 

 

 

9.3

 

Excess tax benefits from share-based payment arrangements

 

 

 

 -

 

 

 

6.7

 

Acquisition related liabilities and contingent consideration

 

 

 

 -

 

 

 

(2.3)

 

Other, net

 

 

 

(0.9)

 

 

 

 -

 

Cash provided by (used for) financing activities

 

 

 

395.5

 

 

 

(145.4)

 

 

 

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

 

 

5.0

 

 

 

(0.5)

 

 

 

 

 

 

 

 

 

 

 

Increase (decrease) in cash and cash equivalents

 

 

 

(115.3)

 

 

 

175.7

 

Cash and cash equivalents, beginning of period

 

 

 

327.4

 

 

 

92.8

 

Cash and cash equivalents, end of period

 

 

 

$ 212.1

 

 

 

$ 268.5

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of the consolidated financial statements.

 

 

5


 

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

1. CONSOLIDATED FINANCIAL INFORMATION

 

The unaudited consolidated financial information for the first quarter ended March 31, 2017 and 2016 reflect, in the opinion of company management, all adjustments necessary for a fair presentation of the financial position, results of operations, comprehensive income (loss) and cash flows of Ecolab Inc. ("Ecolab" or "the Company") for the interim periods presented. Any adjustments consist of normal recurring items.

 

The financial results for any interim period are not necessarily indicative of results for the full year. The consolidated balance sheet data as of December 31, 2016 was derived from the audited consolidated financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. The unaudited consolidated financial information should be read in conjunction with the consolidated financial statements and notes thereto incorporated in the Company's Annual Report on Form 10-K for the year ended December 31, 2016.

 

During the first quarter of 2017, the Company adopted the accounting guidance issued in March 2016 that amends certain aspects of share-based compensation for employees, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classifications on the Consolidated Statement of Cash Flows. Under the new guidance, all excess tax benefits or deficiencies are to be recognized prospectively as discrete income tax items on the Consolidated Statement of Income, while previous guidance required realized excess tax benefits or deficiencies to be recognized in additional paid-in capital. The Company recorded $16.0 million of tax benefits associated with excess tax benefits during the first quarter of 2017. The extent of excess tax benefits is subject to variation in stock price and stock option exercises. Adoption of the accounting standard also eliminated the requirement that excess tax benefits be realized before they can be recognized, and as a result, the Company recorded a $1.9 million cumulative-effect adjustment for previously unrecognized excess tax benefits. 

 

The Company’s adoption also resulted in associated excess tax benefits being classified as operating activity in the statement of cash flows prospectively beginning January 1, 2017 with no changes to the prior year. Based on the adoption methodology applied, employee taxes paid remain classified as a financing activity on the statement of cash flows, and the statement of cash flows classification of prior periods has not changed.  With regards to forfeitures, the new guidance allows companies either to continue to estimate the number of awards that will be forfeited or to account for forfeitures as they occur. The Company has elected to continue to estimate the number of awards that will be forfeited based on an estimate of the number of outstanding awards expected to vest. 


With respect to the unaudited financial information of the Company for the first quarter ended March 31, 2017 and 2016 included in this Form 10-Q, PricewaterhouseCoopers LLP reported that they have applied limited procedures in accordance with professional standards for a review of such information. Their separate report dated May 4, 2017 appearing herein states that they did not audit and they do not express an opinion on that unaudited financial information. Accordingly, the degree of reliance on their report on such information should be restricted in light of the limited nature of the review procedures applied. PricewaterhouseCoopers LLP is not subject to the liability provisions of Section 11 of the Securities Act of 1933, as amended (the "Act"), for their report on the unaudited financial information because that report is not a "report" or a "part" of a registration statement prepared or certified by PricewaterhouseCoopers LLP within the meaning of Sections 7 and 11 of the Act.

 

 

2. SPECIAL (GAINS) AND CHARGES

 

Special (gains) and charges reported on the Consolidated Statement of Income include the following:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter Ended 

 

 

March 31

(millions)

    

2017

 

2016

Cost of sales

 

 

 

 

 

 

 

Inventory fair value step-up

 

 

$ 1.5

 

 

 

$ -

 

 

 

 

 

 

 

 

Special (gains) and charges

 

 

 

 

 

 

 

Restructuring activities

 

 

(0.3)

 

 

 

3.0

Acquisition and integration costs

 

 

6.3

 

 

 

2.3

Other

 

 

0.2

 

 

 

1.0

Subtotal

 

 

6.2

 

 

 

6.3

 

 

 

 

 

 

 

 

Total special (gains) and charges

 

 

$ 7.7

 

 

 

$ 6.3

 

For segment reporting purposes, special (gains) and charges are not allocated to reportable segments, which is consistent with the Company’s internal management reporting.

 

6


 

Inventory fair value step-up

 

The recognition of fair value step-up in Laboratoires Anios (“Anios”) inventory, which is maintained on a FIFO basis, of $1.5 million ($1.1 million after tax) is recorded in cost of sales on the Consolidated Statement of Income. Further information related to the Anios acquisition is included in Note 3.

 

Restructuring activities

 

The Company’s restructuring activities are associated with plans to enhance its efficiency and effectiveness and sharpen its competitiveness. Restructuring plans include net costs associated with significant actions involving employee-related severance charges, contract termination costs and asset write-downs and disposals. Employee termination costs are largely based on policies and severance plans, and include personnel reductions and related costs for severance, benefits and outplacement services. These charges are reflected in the quarter when the actions are probable and the amounts are estimable, which typically is when management approves the actions. Contract termination costs include charges to terminate leases prior to the end of their respective terms and other contract terminations. Asset write-downs and disposals include leasehold improvement write-downs, other asset write-downs associated with combining operations and disposal of assets.

 

Restructuring activities have been included as a component of special (gains) and charges on the Consolidated Statement of Income. Restructuring liabilities have been classified as a component of both other current and other noncurrent liabilities on the Consolidated Balance Sheet. During the first quarter of 2017, restructuring gains and charges were minimal. During the first quarter of 2016, net restructuring charges were $3.0 million ($1.7 million after tax). The restructuring liability balance was $33.6 million and $39.6 million as of March 31, 2017 and December 31, 2016, respectively. The reduction in liability was driven primarily by severance and other cash payments. The remaining accrual is expected to be paid over a period of a few months to several quarters and continues to be funded from operating activities.

 

Acquisition and integration related costs

 

The Company’s acquisition and integration costs include $6.3 million ($4.2 million after tax) and $2.3 million ($1.4 million after tax) of acquisition costs, advisory and legal fees, and integration charges for the Anios and Swisher Hygiene Inc. (“Swisher”) acquisitions during the first quarter of 2017 and 2016, respectively. Further information related to the Company’s acquisitions is included in Note 3.

 

3. ACQUISITIONS AND DISPOSITIONS

 

Acquisitions

 

The Company makes acquisitions that align with strategic business objectives. The assets and liabilities of the acquired entities have been recorded as of the acquisition date, at their respective fair values, and are included in the Consolidated Balance Sheet and results of the Company from the date of acquisition. The purchase price allocation is based on estimates of the fair value of assets acquired and liabilities assumed. The aggregate purchase price of acquisitions has been reduced for any cash or cash equivalents acquired with the acquisition. Acquisitions during the first three months of 2017 and 2016 were not material to the Company’s consolidated financial statements; therefore pro forma financial information is not presented.

 

Anios Acquisition

 

On February 1, 2017, the Company acquired Anios for total consideration of $798.5 million in cash, including satisfaction of outstanding debt. Anios is a leading European manufacturer and marketer of hygiene and disinfection products for the healthcare, food service, and food and beverage processing industries. Anios provides an innovative product line that expands the solutions the Company is able to offer while also providing a complementary geographic footprint within the healthcare market. With pre-acquisition annual sales of approximately $245 million, the acquired business became part of the Company’s Global Institutional reportable segment during the first quarter of 2017. During 2016, the Company deposited €50 million in an escrow account that was released back to the Company upon closing of the transaction in February 2017. As shown within Note 4, this was recorded as restricted cash within Other Assets on the Consolidated Balance Sheet as of December 31, 2016.

 

The Company incurred certain acquisition and integration costs associated with the transaction that were expensed and are reflected in the Consolidated Statement of Income. A total of $6.0 million ($4.2 million after tax) of charges were incurred during the first quarter of 2017, of which $1.5 million ($1.1 million after tax) were included in cost of sales and are related to recognition of fair value step-up in Anios inventory, which is maintained on a FIFO basis.

 

The Anios acquisition has been accounted for using the acquisition method of accounting, which requires, among other things, that most assets acquired and liabilities assumed be recognized at fair value as of the acquisition date. Certain estimated values are not yet finalized and are subject to change. Amounts for certain deferred tax assets and liabilities, environmental reserves, certain tangible and intangible assets, income tax uncertainties, and goodwill remain subject to change, as information necessary to complete the analysis is obtained. The Company expects to finalize these by the filing of the 2017 Form 10-K.

 

7


 

The following table summarizes the preliminary value of Anios assets acquired and liabilities assumed as of the acquisition date.

 

 

 

 

 

 

 

 

(millions)

 

 

Tangible assets

 

 

$ 142.7

 

Identifiable intangible assets:

 

 

 

 

Customer relationships

 

 

250.9

 

Trademarks

 

 

49.5

 

Other technology

 

 

15.1

 

Total assets acquired

 

 

458.2

 

 

 

 

 

 

Total liabilities assumed

 

 

190.1

 

 

 

 

 

 

Goodwill

 

 

530.4

 

Total consideration transferred

 

 

798.5

 

 

 

 

 

 

Long-term debt repaid upon close

 

 

193.0

 

Net consideration transferred to sellers

 

 

$ 605.5

 

 

Net tangible assets are primarily comprised of accounts receivable of $66.2 million, property, plant and equipment of $25.6 million and inventory of $29.7 million.

 

The customer relationships, trademarks, and other technology are being amortized over weighted average lives of 18, 11, and 12 years, respectively.

 

Goodwill of $530.4 million arising from the acquisition consists largely of the synergies and economies of scale expected through adding complementary geographies and innovative products to the Company’s healthcare portfolio. All of the goodwill was assigned to the Healthcare operating segment within the Global Institutional reportable segment. None of the goodwill recognized is expected to be deductible for income tax purposes.

 

Other Acquisitions

 

During the first quarter of 2017, the Company paid $28 million for acquisitions, of which $18 million was attributed to certain identifiable intangible assets. The weighted average useful life of these identifiable intangible assets acquired was 12 years. Additionally, there were immaterial purchase price adjustments related to prior year acquisitions.

 

During the first quarter of 2016, the Company paid $12 million for acquisitions, of which $2.5 million was attributed to certain identifiable intangible assets. The weighted average useful life of these identifiable intangible assets acquired was 5 years. Additionally, there were immaterial purchase price adjustments related to prior year acquisitions.

 

Dispositions

 

There were no business dispositions during the first quarter of 2017 or 2016.

 

 

 

 

8


 

4. BALANCE SHEET INFORMATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31

 

December 31

(millions)

    

2017

 

2016

Accounts receivable, net

 

 

 

 

 

 

 

 

Accounts receivable

 

 

$ 2,428.7

 

 

 

$ 2,408.8

 

Allowance for doubtful accounts

 

 

(70.7)

 

 

 

(67.6)

 

Total

 

 

$ 2,358.0

 

 

 

$ 2,341.2

 

 

 

 

 

 

 

 

 

 

Inventories

 

 

 

 

 

 

 

 

Finished goods

 

 

$ 956.6

 

 

 

$ 860.0

 

Raw materials and parts

 

 

425.4

 

 

 

408.4

 

Inventories at FIFO cost

 

 

1,382.0

 

 

 

1,268.4

 

FIFO cost to LIFO cost difference

 

 

46.3

 

 

 

51.0

 

Total

 

 

$ 1,428.3

 

 

 

$ 1,319.4

 

 

 

 

 

 

 

 

 

 

Other current assets

 

 

 

 

 

 

 

 

Prepaid assets

 

 

$ 124.3

 

 

 

$ 98.3

 

Taxes receivable

 

 

98.8

 

 

 

105.0

 

Derivative assets

 

 

37.2

 

 

 

46.3

 

Other

 

 

48.6

 

 

 

41.8

 

Total

 

 

$ 308.9

 

 

 

$ 291.4

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment, net

 

 

 

 

 

 

 

 

Land

 

 

$ 215.1