Operations and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Accounts Receivable Outstanding as a Percent of Net Sales

The following summarizes by geographic region, as a percentage of our consolidated net sales, amounts with maximum interest-free periods as presented below (in millions):

Year Ended December 31, 2017	North America		South America		Europe/ Middle East		Asia/Pacific/Africa		Consolidated
0 to 6 months	$	1,399.6	$	1,063.5	$	4,603.9	$	752.0	$	7,819.0	94.1	%
7 to 12 months	467.7		—		10.4		—		478.1		5.8	%
13 to 24 months	9.4		—		—		—		9.4		0.1	%
	$	1,876.7	$	1,063.5	$	4,614.3	$	752.0	$	8,306.5	100.0	%

Trade Allowances and Sales Incentive Discounts

Accounts and notes receivable allowances at December 31, 2017 and 2016 were as follows (in millions):

	2017		2016
Sales incentive discounts	$	33.1	$	34.5
Doubtful accounts	37.5		33.7
	$	70.6	$	68.2

Schedule of Inventory, Current

Inventories, net at December 31, 2017 and 2016 were as follows (in millions):

	2017		2016
Finished goods	$	684.1	$	589.3
Repair and replacement parts	605.9		532.5
Work in process	178.7		113.8
Raw materials	404.2		279.2
Inventories, net	$	1,872.9	$	1,514.8

Property, Plant and Equipment

Property, plant and equipment, net at December 31, 2017 and 2016 consisted of the following (in millions):

	2017			2016
Land	$	130.6		$	112.1
Buildings and improvements	792.0			681.8
Machinery and equipment	2,391.6			2,116.1
Furniture and fixtures	147.6			126.4
Gross property, plant and equipment	3,461.8			3,036.4
Accumulated depreciation and amortization	(1,976.5		)	(1,675.1		)
Property, plant and equipment, net	$	1,485.3		$	1,361.3

Schedule of Goodwill

Changes in the carrying amount of goodwill during the years ended December 31, 2017, 2016 and 2015 are summarized as follows (in millions):

	North America		South America			Europe/ Middle East			Asia/Pacific/Africa			Consolidated
Balance as of December 31, 2014	$	513.6	$	169.7		$	445.4		$	64.1		$	1,192.8
Acquisition	5.1		—			4.4			12.7			22.2
Foreign currency translation	—		(55.3		)	(38.6		)	(6.6		)	(100.5		)
Balance as of December 31, 2015	518.7		114.4			411.2			70.2			1,114.5
Acquisitions	25.2		—			196.4			47.6			269.2
Foreign currency translation	—		24.4			(25.7		)	(6.0		)	(7.3		)
Balance as of December 31, 2016	543.9		138.8			581.9			111.8			1,376.4
Acquisitions	67.2		—			17.4			—			84.6
Foreign currency translation	—		(2.4		)	71.7			11.1			80.4
Balance as of December 31, 2017	$	611.1	$	136.4		$	671.0		$	122.9		$	1,541.4

Schedule of Acquired Finite-Lived Intangible Assets by Major Class

Changes in the carrying amount of acquired intangible assets during 2017 and 2016 are summarized as follows (in millions):

	Trademarks and Trade Names			Customer Relationships			Patents and Technology			Land Use Rights			Total
Gross carrying amounts:
Balance as of December 31, 2015	$	122.2		$	492.3		$	92.5		$	9.1		$	716.1
Acquisitions	61.2			69.0			32.3			—			162.5
Foreign currency translation	(4.2		)	(3.3		)	(2.7		)	(0.6		)	(10.8		)
Balance as of December 31, 2016	179.2			558.0			122.1			8.5			867.8
Acquisitions	19.5			24.4			28.1			—			72.0
Foreign currency translation	9.7			18.0			9.8			0.6			38.1
Balance as of December 31, 2017	$	208.4		$	600.4		$	160.0		$	9.1		$	977.9

	Trademarks and Trade Names			Customer Relationships		Patents and Technology			Land Use Rights			Total
Accumulated amortization:
Balance as of December 31, 2015	$	41.9		$	193.8	$	55.1		$	2.9		$	293.7
Amortization expense	8.0			37.4		5.6			0.2			51.2
Foreign currency translation	(0.2		)	1.8		(1.2		)	(0.4		)	—
Balance as of December 31, 2016	49.7			233.0		59.5			2.7			344.9
Amortization expense	10.3			38.5		8.0			0.2			57.0
Foreign currency translation	1.4			8.2		5.9			0.1			15.6
Balance as of December 31, 2017	$	61.4		$	279.7	$	73.4		$	3.0		$	417.5

The acquired intangible assets have a weighted average useful life as follows:

Intangible Asset	Weighted-Average Useful Life
Patents and technology	12	years
Customer relationships	13	years
Trademarks and trade names	19	years
Land use rights	45	years

Schedule of Indefinite-lived Intangible Assets by Major Class

	Trademarks and Trade Names
Indefinite-lived intangible assets:
Balance as of December 31, 2015	$	85.3
Foreign currency translation	(0.9		)
Balance as of December 31, 2016	84.4
Foreign currency translation	4.2
Balance as of December 31, 2017	$	88.6

Schedule of Accrued Liabilities

Accrued expenses at December 31, 2017 and 2016 consisted of the following (in millions):

	2017		2016
Reserve for volume discounts and sales incentives	$	489.1	$	407.3
Warranty reserves	273.6		223.1
Accrued employee compensation and benefits	283.3		234.0
Accrued taxes	135.4		113.5
Other	226.5		182.9
	$	1,407.9	$	1,160.8

Schedule of Product Warranty Liability

The warranty reserve activity for the years ended December 31, 2017, 2016 and 2015 consisted of the following (in millions):

	2017			2016			2015
Balance at beginning of the year	$	255.6		$	230.3		$	284.6
Acquisitions	5.1			3.7			0.2
Accruals for warranties issued during the year	215.9			214.6			152.6
Settlements made (in cash or in kind) during the year	(183.1		)	(188.7		)	(186.2		)
Foreign currency translation	22.5			(4.3		)	(20.9		)
Balance at the end of the year	$	316.0		$	255.6		$	230.3

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs

Stock compensation expense was recorded as follows (in millions). Refer to Note 10 for additional information regarding the Company’s stock incentive plans during 2017, 2016 and 2015:

	Years Ended December 31,
	2017		2016		2015
Cost of goods sold	$	2.8	$	1.5	$	0.9
Selling, general and administrative expenses	35.6		16.9		11.6
Total stock compensation expense	$	38.4	$	18.4	$	12.5

Schedule of Components of Interest Expense, Net

Interest expense, net for the years ended December 31, 2017, 2016 and 2015 consisted of the following (in millions):

	2017			2016			2015
Interest expense	$	54.5		$	65.4		$	64.1
Interest income	(9.4		)	(13.3		)	(18.7		)
	$	45.1		$	52.1		$	45.4

Schedule of Earnings Per Share, Basic and Diluted

A reconciliation of net income attributable to AGCO Corporation and its subsidiaries and weighted average common shares outstanding for purposes of calculating basic and diluted net income per share during the years ended December 31, 2017, 2016 and 2015 is as follows (in millions, except per share data):

	2017		2016		2015
Basic net income per share:
Net income attributable to AGCO Corporation and subsidiaries	$	186.4	$	160.1	$	266.4
Weighted average number of common shares outstanding	79.5		81.4		87.0
Basic net income per share attributable to AGCO Corporation and subsidiaries	$	2.34	$	1.97	$	3.06
Diluted net income per share:
Net income attributable to AGCO Corporation and subsidiaries	$	186.4	$	160.1	$	266.4
Weighted average number of common shares outstanding	79.5		81.4		87.0
Dilutive SSARs, performance share awards and restricted stock units	0.7		0.3		0.1
Weighted average number of common shares and common share equivalents outstanding for purposes of computing diluted net income per share	80.2		81.7		87.1
Diluted net income per share attributable to AGCO Corporation and subsidiaries	$	2.32	$	1.96	$	3.06

Schedule of Comprehensive Income (Loss)

The components of other comprehensive income (loss) and the related tax effects for the years ended December 31, 2017, 2016 and 2015 are as follows (in millions):

	AGCO Corporation and Subsidiaries							Noncontrolling Interests
	2017							2017
	Before-tax Amount		Income Taxes			After-tax Amount		After-tax Amount
Defined benefit pension plans	$	24.2	$	(4.8	)	$	19.4	$	—
Net gain on derivatives	4.1		(0.1		)	4.0		—
Foreign currency translation adjustments	56.6		—			56.6		1.2
Total components of other comprehensive income	$	84.9	$	(4.9	)	$	80.0	$	1.2

	AGCO Corporation and Subsidiaries								Noncontrolling Interests
	2016								2016
	Before-tax Amount			Income Taxes		After-tax Amount			After-tax Amount
Defined benefit pension plans	$	(68.2	)	$	12.7	$	(55.5	)	$	—
Net loss on derivatives	(6.8		)	0.1		(6.7		)	—
Foreign currency translation adjustments	80.8			—		80.8			1.6
Total components of other comprehensive income	$	5.8		$	12.8	$	18.6		$	1.6

	AGCO Corporation and Subsidiaries									Noncontrolling Interests
	2015									2015
	Before-tax Amount			Income Taxes			After-tax Amount			After-tax Amount
Defined benefit pension plans	$	4.9		$	(0.6	)	$	4.3		$	—
Net loss on derivatives	(3.1		)	1.2			(1.9		)	—
Foreign currency translation adjustments	(556.1		)	—			(556.1		)	(2.1		)
Total components of other comprehensive loss	$	(554.3	)	$	0.6		$	(553.7	)	$	(2.1	)