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Separate Financial Information of Guarantor Subsidiaries (Notes)
 9 Months Ended
Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Separate Financial Information of Guarantor Subsidiaries
19.
Separate Financial Information of Guarantor Subsidiaries
The following condensed consolidated guarantor financial information is presented to comply with the requirements of Rule 3-10 of Regulation S-X.
In 2017, we issued and sold $300.0 million in aggregate principal amount of our 5.625% Senior Notes due 2025 (the "Notes"), pursuant to an Indenture, dated as of April 18, 2017, among the company, the Guarantors (as defined below), and Wells Fargo Bank, National Association, a national banking association, as trustee. The Notes are unconditionally and jointly and severally guaranteed by Tennant Coatings, Inc. and Tennant Sales and Service Company (collectively, the "Guarantors"), which are wholly owned subsidiaries of the company.
The Notes and the guarantees constitute senior unsecured obligations of the company and the Guarantors, respectively. The Notes and the guarantees, respectively, are: (a) equal in right of payment with all of the company’s and the Guarantors’ senior debt, without giving effect to collateral arrangements; (b) senior in right of payment to all of the company’s and the Guarantors’ future subordinated debt, if any; (c) effectively subordinated in right of payment to all of the company’s and the Guarantors’ debt and obligations that are secured, including borrowings under the company’s senior secured credit facilities for so long as the senior secured credit facilities are secured, to the extent of the value of the assets securing such liens; and (d) structurally
subordinated in right of payment to all liabilities (including trade payables) of the company’s and the Guarantors’ subsidiaries that do not guarantee the Notes.
The following condensed consolidated financial information presents the Condensed Consolidated Statements of Earnings and the Condensed Consolidated Statements of Comprehensive Income for each of the three and nine months ended September 30, 2019 and September 30, 2018, the related Condensed Consolidated Balance Sheets as of September 30, 2019 and December 31, 2018, and the related Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2019 and September 30, 2018, of Tennant Company ("Parent"), the Guarantor Subsidiaries on a combined basis, the Non-Guarantor Subsidiaries on a combined basis and elimination entries necessary to consolidate the Parent with the Guarantor and Non-Guarantor Subsidiaries. The following condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the company and notes thereto of which this note is an integral part.
Condensed Consolidated Statement of Earnings
For the three months ended September 30, 2019
(in millions)
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Total Tennant Company
Net Sales
$
136.0

 
$
172.6

 
$
127.3

 
$
(155.2
)
 
$
280.7

Cost of Sales
88.0

 
147.2

 
86.6

 
(155.1
)
 
166.7

Gross Profit
48.0

 
25.4

 
40.7

 
(0.1
)
 
114.0

 
 

 
 

 
 

 
 
 
 
Operating Expense:
 
 
 
 
 
 
 
 
 
Research and Development Expense
6.6

 
0.2

 
1.4

 
—

 
8.2

Selling and Administrative Expense
30.8

 
18.3

 
35.2

 
—

 
84.3

Total Operating Expense
37.4

 
18.5

 
36.6

 
—

 
92.5

Profit from Operations
10.6

 
6.9

 
4.1

 
(0.1
)
 
21.5

 
 

 
 

 
 

 
 
 
 
Other Income (Expense):
 
 
 
 
 
 
 
 
 
Equity in Earnings of Affiliates
7.2

 
0.2

 
0.5

 
(7.9
)
 
—

Interest (Expense) Income, Net
(4.4
)
 
—

 
—

 
—

 
(4.4
)
Intercompany Interest Income (Expense)
3.6

 
(1.5
)
 
(2.1
)
 
—

 
—

Net Foreign Currency Transaction Losses
(0.2
)
 
—

 
(0.4
)
 
—

 
(0.6
)
Other (Expense) Income, Net
(0.2
)
 
(0.3
)
 
0.6

 
—

 
0.1

Total Other Expense, Net
6.0

 
(1.6
)
 
(1.4
)
 
(7.9
)
 
(4.9
)
 
 
 
 
 
 
 
 
 
 
Profit Before Income Taxes
16.6

 
5.3

 
2.7

 
(8.0
)
 
16.6

Income Tax Expense (Benefit)
2.0

 
0.8

 
(0.1
)
 
(0.7
)
 
2.0

Net Earnings Including Noncontrolling Interest
14.6

 
4.5

 
2.8

 
(7.3
)
 
14.6

Net Earnings Attributable to Tennant Company
$
14.6

 
$
4.5

 
$
2.8

 
$
(7.3
)
 
$
14.6

Condensed Consolidated Statement of Earnings
For the nine months ended September 30, 2019
(in millions)
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Total Tennant Company
Net Sales
$
393.5

 
$
495.9

 
$
408.4

 
$
(455.0
)
 
$
842.8

Cost of Sales
256.9

 
418.2

 
276.4

 
(451.7
)
 
499.8

Gross Profit
136.6

 
77.7

 
132.0

 
(3.3
)
 
343.0

 
 

 
 

 
 

 
 
 
 
Operating Expense:
 
 
 
 
 
 
 
 
 
Research and Development Expense
19.0

 
0.7

 
4.1

 
—

 
23.8

Selling and Administrative Expense
85.7

 
56.9

 
124.4

 
—

 
267.0

Total Operating Expense
104.7

 
57.6

 
128.5

 
—

 
290.8

Profit from Operations
31.9

 
20.1

 
3.5

 
(3.3
)
 
52.2

 
 

 
 

 
 

 
 
 
 
Other Income (Expense):
 
 
 
 
 
 
 
 
 
Equity in Earnings of Affiliates
11.9

 
1.6

 
2.8

 
(16.3
)
 
—

Interest (Expense) Income, Net
(13.2
)
 
—

 
—

 
—

 
(13.2
)
Intercompany Interest Income (Expense)
10.5

 
(4.3
)
 
(6.2
)
 
—

 
—

Net Foreign Currency Transaction Losses
—

 
—

 
(0.6
)
 
—

 
(0.6
)
Other (Expense) Income, Net
(1.3
)
 
(1.0
)
 
3.8

 
(0.1
)
 
1.4

Total Other Expense, Net
7.9

 
(3.7
)
 
(0.2
)
 
(16.4
)
 
(12.4
)
 
 
 
 
 
 
 
 
 
 
Profit Before Income Taxes
39.8

 
16.4

 
3.3

 
(19.7
)
 
39.8

Income Tax Expense (Benefit)
5.0

 
3.8

 
(0.3
)
 
(3.5
)
 
5.0

Net Earnings Including Noncontrolling Interest
34.8

 
12.6

 
3.6

 
(16.2
)
 
34.8

Net Earnings Attributable to Tennant Company
$
34.8

 
$
12.6

 
$
3.6

 
$
(16.2
)
 
$
34.8


Condensed Consolidated Statement of Earnings
For the three months ended September 30, 2018
(in millions)
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Total Tennant Company
Net Sales
$
126.1

 
$
160.2

 
$
131.4

 
$
(144.4
)
 
$
273.3

Cost of Sales
86.8

 
135.0

 
89.2

 
(144.3
)
 
166.7

Gross Profit
39.3

 
25.2

 
42.2

 
(0.1
)
 
106.6

 
 

 
 

 
 

 
 
 
 
Operating Expense:
 
 
 
 
 
 
 
 
 
Research and Development Expense
6.1

 
0.3

 
1.1

 
—

 
7.5

Selling and Administrative Expense
26.7

 
18.1

 
38.1

 
0.8

 
83.7

Total Operating Expense
32.8

 
18.4

 
39.2

 
0.8

 
91.2

Profit from Operations
6.5

 
6.8

 
3.0

 
(0.9
)
 
15.4

 
 

 
 

 
 

 
 
 
 
Other Income (Expense):
 
 
 
 
 
 
 
 
 
Equity in Earnings of Affiliates
5.3

 
0.2

 
0.2

 
(5.7
)
 
—

Interest (Expense) Income, Net
(5.3
)
 
—

 
0.1

 
—

 
(5.2
)
Intercompany Interest Income (Expense)
3.6

 
(1.4
)
 
(2.2
)
 
—

 
—

Net Foreign Currency Transaction Losses
(0.1
)
 
—

 
(0.2
)
 
—

 
(0.3
)
Other (Expense) Income, Net
(0.1
)
 
(0.5
)
 
(0.2
)
 
0.8

 
—

Total Other Income (Expense), Net
3.4

 
(1.7
)
 
(2.3
)
 
(4.9
)
 
(5.5
)
 
 
 
 
 
 
 
 
 
 
Profit Before Income Taxes
9.9

 
5.1

 
0.7

 
(5.8
)
 
9.9

Income Tax Expense (Benefit)
0.2

 
1.2

 
(0.9
)
 
(0.3
)
 
0.2

Net Earnings Including Noncontrolling Interest
9.7

 
3.9

 
1.6

 
(5.5
)
 
9.7

Net Earnings Attributable to Tennant Company
$
9.7

 
$
3.9

 
$
1.6

 
$
(5.5
)
 
$
9.7


Condensed Consolidated Statement of Earnings
For the nine months ended September 30, 2018
(in millions)
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Total Tennant Company
Net Sales
$
366.1

 
$
472.5

 
$
422.9

 
$
(423.2
)
 
$
838.3

Cost of Sales
249.1

 
395.3

 
282.8

 
(421.8
)
 
505.4

Gross Profit
117.0

 
77.2

 
140.1

 
(1.4
)
 
332.9

 
 

 
 

 
 

 
 
 
 
Operating Expense:
 
 
 
 
 
 
 
 
 
Research and Development Expense
18.6

 
0.8

 
4.0

 
—

 
23.4

Selling and Administrative Expense
84.5

 
57.2

 
122.2

 
0.8

 
264.7

Total Operating Expense
103.1

 
58.0

 
126.2

 
0.8

 
288.1

Profit from Operations
13.9

 
19.2

 
13.9

 
(2.2
)
 
44.8

 
 

 
 

 
 

 
 
 
 
Other Income (Expense):
 
 
 
 
 
 
 
 
 
Equity in Earnings of Affiliates
19.7

 
1.3

 
4.2

 
(25.2
)
 
—

Interest (Expense) Income, Net
(15.7
)
 
—

 
0.5

 
—

 
(15.2
)
Intercompany Interest Income (Expense)
10.9

 
(4.3
)
 
(6.6
)
 
—

 
—

Net Foreign Currency Transaction Losses
(0.4
)
 
—

 
(1.0
)
 
—

 
(1.4
)
Other (Expense) Income, Net
(1.0
)
 
(1.6
)
 
1.1

 
0.7

 
(0.8
)
Total Other Income (Expense), Net
13.5

 
(4.6
)
 
(1.8
)
 
(24.5
)
 
(17.4
)
 
 
 
 
 
 
 
 
 
 
Profit Before Income Taxes
27.4

 
14.6

 
12.1

 
(26.7
)
 
27.4

Income Tax Expense
1.6

 
3.5

 
0.7

 
(4.2
)
 
1.6

Net Earnings Including Noncontrolling Interest
25.8

 
11.1

 
11.4

 
(22.5
)
 
25.8

Net Earnings Attributable to Noncontrolling Interest
0.1

 
—

 
0.1

 
(0.1
)
 
0.1

Net Earnings Attributable to Tennant Company
$
25.7

 
$
11.1

 
$
11.3

 
$
(22.4
)
 
$
25.7







Condensed Consolidated Statement of Comprehensive Income (Loss)
For the three months ended September 30, 2019
(in millions)
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Total Tennant Company
Net Earnings Including Noncontrolling Interest
$
14.6

 
$
4.5

 
$
2.8

 
$
(7.3
)
 
$
14.6

Other Comprehensive Loss:
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
(12.6
)
 
(9.9
)
 
(13.9
)
 
23.8

 
(12.6
)
Pension and retiree medical benefits
—

 
—

 
—

 
—

 
—

Cash flow hedge
1.7

 
—

 
—

 
—

 
1.7

Income Taxes:
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
0.1

 
—

 
(1.1
)
 
1.1

 
0.1

Pension and retiree medical benefits
—

 
—

 
—

 
—

 
—

Cash flow hedge
(0.4
)
 
—

 
—

 
—

 
(0.4
)
Total Other Comprehensive Loss, net of tax
(11.2
)
 
(9.9
)
 
(15.0
)
 
24.9

 
(11.2
)
 
 
 
 
 
 
 
 
 
 
Total Comprehensive Income (Loss) Including Noncontrolling Interest
3.4

 
(5.4
)
 
(12.2
)
 
17.6

 
3.4

Comprehensive Income (Loss) Attributable to Tennant Company
$
3.4

 
$
(5.4
)
 
$
(12.2
)
 
$
17.6

 
$
3.4


Condensed Consolidated Statement of Comprehensive Income (Loss)
For the nine months ended September 30, 2019
(in millions)
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Total Tennant Company
Net Earnings Including Noncontrolling Interest
$
34.8

 
$
12.6

 
$
3.6

 
$
(16.2
)
 
$
34.8

Other Comprehensive Loss:
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
(13.5
)
 
(10.1
)
 
(14.6
)
 
24.7

 
(13.5
)
Pension and retiree medical benefits
—

 
—

 
—

 
—

 
—

Cash flow hedge
4.3

 
—

 
—

 
—

 
4.3

Income Taxes:
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
0.1

 
—

 
(0.1
)
 
0.1

 
0.1

Pension and retiree medical benefits
—

 
—

 
—

 
—

 
—

Cash flow hedge
(1.0
)
 
—

 
—

 
—

 
(1.0
)
Total Other Comprehensive Loss, net of tax
(10.1
)
 
(10.1
)
 
(14.7
)
 
24.8

 
(10.1
)
 
 
 
 
 
 
 
 
 
 
Total Comprehensive Income (Loss) Including Noncontrolling Interest
24.7

 
2.5

 
(11.1
)
 
8.6

 
24.7

Comprehensive Income (Loss) Attributable to Tennant Company
$
24.7

 
$
2.5

 
$
(11.1
)
 
$
8.6

 
$
24.7











Condensed Consolidated Statement of Comprehensive Income (Loss)
For the three months ended September 30, 2018
(in millions)
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Total Tennant Company
Net Earnings Including Noncontrolling Interest
$
9.7

 
$
3.9

 
$
1.6

 
$
(5.5
)
 
$
9.7

Other Comprehensive Loss:
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
(3.1
)
 
0.2

 
(3.7
)
 
3.5

 
(3.1
)
Pension and retiree medical benefits
—

 
—

 
—

 
—

 
—

Cash flow hedge
—

 
—

 
—

 
—

 
—

Income Taxes:
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
0.3

 
—

 
0.3

 
(0.3
)
 
0.3

Pension and retiree medical benefits
—

 
—

 
—

 
—

 
—

Cash flow hedge
—

 
—

 
—

 
—

 
—

Total Other Comprehensive (Loss) Income, net of tax
(2.8
)
 
0.2

 
(3.4
)
 
3.2

 
(2.8
)
 
 
 
 
 
 
 
 
 
 
Total Comprehensive Income (Loss) Including Noncontrolling Interest
6.9

 
4.1

 
(1.8
)
 
(2.3
)
 
6.9

Comprehensive Income (Loss) Attributable to Tennant Company
$
6.9

 
$
4.1

 
$
(1.8
)
 
$
(2.3
)
 
$
6.9


Condensed Consolidated Statement of Comprehensive Income (Loss)
For the nine months ended September 30, 2018
(in millions)
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Total Tennant Company
Net Earnings Including Noncontrolling Interest
$
25.8

 
$
11.1

 
$
11.4

 
$
(22.5
)
 
$
25.8

Other Comprehensive Loss:
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
(14.2
)
 
(0.3
)
 
(20.1
)
 
20.4

 
(14.2
)
Pension and retiree medical benefits
0.1

 
—

 
—

 
—

 
0.1

Cash flow hedge
(1.4
)
 
—

 
—

 
—

 
(1.4
)
Income Taxes:
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
0.6

 
—

 
0.5

 
(0.5
)
 
0.6

Pension and retiree medical benefits
(0.2
)
 
—

 
—

 
—

 
(0.2
)
Cash flow hedge
(0.8
)
 
—

 
—

 
—

 
(0.8
)
Total Other Comprehensive Loss, net of tax
(15.9
)
 
(0.3
)
 
(19.6
)
 
19.9

 
(15.9
)
 
 
 
 
 
 
 
 
 
 
Total Comprehensive Income (Loss) Including Noncontrolling Interest
9.9

 
10.8

 
(8.2
)
 
(2.6
)
 
9.9

Comprehensive Income Attributable to Noncontrolling Interest
0.1

 
—

 
0.1

 
(0.1
)
 
0.1

Comprehensive Income (Loss) Attributable to Tennant Company
$
9.8

 
$
10.8

 
$
(8.3
)
 
$
(2.5
)
 
$
9.8




Condensed Consolidated Balance Sheet
As of September 30, 2019
(in millions)
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Total Tennant Company
ASSETS
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
Cash, Cash Equivalents, and Restricted Cash
$
30.2

 
$
1.3

 
$
40.2

 
$
—

 
$
71.7

Net Receivables
1.0

 
104.7

 
107.0

 
—

 
212.7

Intercompany Receivables
24.2

 
124.1

 
—

 
(148.3
)
 
—

Inventories
44.1

 
19.5

 
110.8

 
(13.5
)
 
160.9

Prepaid and Other Current Assets
19.8

 
1.0

 
12.7

 
0.7

 
34.2

Total Current Assets
119.3

 
250.6

 
270.7

 
(161.1
)
 
479.5

Property, Plant and Equipment
250.3

 
12.9

 
148.4

 
—

 
411.6

Accumulated Depreciation
(170.7
)
 
(7.2
)
 
(66.2
)
 
—

 
(244.1
)
Property, Plant and Equipment, Net
79.6

 
5.7

 
82.2

 
—

 
167.5

Operating Lease Assets
5.4

 
9.9

 
30.9

 
—

 
46.2

Investment in Affiliates
402.9

 
13.5

 
38.4

 
(454.8
)
 
—

Intercompany Loans
293.5

 
—

 
—

 
(293.5
)
 
—

Goodwill
12.9

 
1.7

 
170.8

 
—

 
185.4

Intangible Assets, Net
3.4

 
2.5

 
133.6

 
—

 
139.5

Other Assets
5.7

 
4.2

 
17.1

 
—

 
27.0

Total Assets
$
922.7

 
$
288.1

 
$
743.7

 
$
(909.4
)
 
$
1,045.1

LIABILITIES AND TOTAL EQUITY
 
 
 
 
 
 
 
 
 
Current Liabilities:
 
 
 
 
 
 
 
 
 
Current Portion of Long-Term Debt
$
19.0

 
$
—

 
$
1.2

 
$
—

 
$
20.2

Accounts Payable
42.8

 
6.2

 
44.9

 
—

 
93.9

Intercompany Payables
123.3

 
—

 
25.0

 
(148.3
)
 
—

Employee Compensation and Benefits
15.4

 
13.1

 
24.4

 
—

 
52.9

Other Current Liabilities
30.4

 
20.5

 
51.3

 
0.7

 
102.9

Total Current Liabilities
230.9

 
39.8

 
146.8

 
(147.6
)
 
269.9

Long-Term Liabilities:
 
 
 
 
 
 
 
 
 
Long-Term Debt
321.0

 
—

 
1.2

 
—

 
322.2

Intercompany Loans
3.8

 
128.0

 
161.7

 
(293.5
)
 
—

Long-Term Operating Lease Liabilities
4.6

 
4.8

 
20.4

 
—

 
29.8

Employee-Related Benefits
10.7

 
1.4

 
7.4

 
—

 
19.5

Deferred Income Taxes
—

 
—

 
42.4

 
—

 
42.4

Other Liabilities
11.9

 
2.9

 
6.7

 
—

 
21.5

Total Long-Term Liabilities
352.0

 
137.1

 
239.8

 
(293.5
)
 
435.4

Total Liabilities
582.9

 
176.9

 
386.6

 
(441.1
)
 
705.3

Equity:
 
 
 
 
 
 
 
 
 
Common Stock
6.8

 
—

 
11.1

 
(11.1
)
 
6.8

Additional Paid-In Capital
39.7

 
77.5

 
417.4

 
(494.9
)
 
39.7

Retained Earnings
339.1

 
35.3

 
1.0

 
(36.3
)
 
339.1

Accumulated Other Comprehensive Loss
(47.3
)
 
(1.6
)
 
(73.9
)
 
75.5

 
(47.3
)
Total Tennant Company Shareholders' Equity
338.3

 
111.2

 
355.6

 
(466.8
)
 
338.3

Noncontrolling Interest
1.5

 
—

 
1.5

 
(1.5
)
 
1.5

Total Equity
339.8

 
111.2

 
357.1

 
(468.3
)
 
339.8

Total Liabilities and Total Equity
$
922.7

 
$
288.1

 
$
743.7

 
$
(909.4
)
 
$
1,045.1

Condensed Consolidated Balance Sheet
As of December 31, 2018
(in millions)
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Total Tennant Company
ASSETS
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
Cash, Cash Equivalents, and Restricted Cash
$
24.8

 
$
1.6

 
$
59.7

 
$
—

 
$
86.1

Net Receivables
0.9

 
94.8

 
120.5

 
—

 
216.2

Intercompany Receivables
30.0

 
148.9

 
—

 
(178.9
)
 
—

Inventories
37.1

 
13.4

 
94.7

 
(10.1
)
 
135.1

Prepaid and Other Current Assets
17.5

 
1.2

 
13.0

 
(0.5
)
 
31.2

Total Current Assets
110.3

 
259.9

 
287.9

 
(189.5
)
 
468.6

Property, Plant and Equipment
229.8

 
12.7

 
144.1

 
—

 
386.6

Accumulated Depreciation
(159.4
)
 
(6.9
)
 
(56.9
)
 
—

 
(223.2
)
Property, Plant and Equipment, Net
70.4

 
5.8

 
87.2

 
—

 
163.4

Operating Lease Assets
—

 
—

 
—

 
—

 
—

Investment in Affiliates
421.0

 
12.1

 
20.8

 
(453.9
)
 
—

Intercompany Loans
301.6

 
—

 
3.2

 
(304.8
)
 
—

Goodwill
12.9

 
1.7

 
168.1

 
—

 
182.7

Intangible Assets, Net
4.0

 
2.7

 
139.8

 
—

 
146.5

Other Assets
11.0

 
3.1

 
17.2

 
—

 
31.3

Total Assets
$
931.2

 
$
285.3

 
$
724.2

 
$
(948.2
)
 
$
992.5

LIABILITIES AND TOTAL EQUITY
 
 
 
 
 
 
 
 
 
Current Liabilities:
 
 
 
 
 
 
 
 
 
Current Portion of Long-Term Debt
$
21.8

 
$
—

 
$
5.2

 
$
—

 
$
27.0

Accounts Payable
41.0

 
5.0

 
52.4

 
—

 
98.4

Intercompany Payables
149.5

 
—

 
29.5

 
(179.0
)
 
—

Employee Compensation and Benefits
14.4

 
17.2

 
24.5

 
—

 
56.1

Other Current Liabilities
22.8

 
17.6

 
27.5

 
(0.5
)
 
67.4

Total Current Liabilities
249.5

 
39.8

 
139.1

 
(179.5
)
 
248.9

Long-Term Liabilities:
 
 
 
 
 
 
 
 
 
Long-Term Debt
326.5

 
—

 
1.6

 
—

 
328.1

Intercompany Loans
3.3

 
128.1

 
173.5

 
(304.9
)
 
—

Long-Term Operating Lease Liabilities
—

 
—

 
—

 
—

 
—

Employee-Related Benefits
11.0

 
2.0

 
8.1

 
—

 
21.1

Deferred Income Taxes
—

 
—

 
46.0

 
—

 
46.0

Other Liabilities
24.6

 
2.9

 
4.6

 
—

 
32.1

Total Long-Term Liabilities
365.4

 
133.0

 
233.8

 
(304.9
)
 
427.3

Total Liabilities
614.9

 
172.8

 
372.9

 
(484.4
)
 
676.2

Equity:
 
 
 
 
 
 
 
 
 
Common Stock
6.8

 
—

 
11.1

 
(11.1
)
 
6.8

Additional Paid-In Capital
28.5

 
77.5

 
399.5

 
(477.0
)
 
28.5

Retained Earnings
316.3

 
36.6

 
(2.5
)
 
(34.1
)
 
316.3

Accumulated Other Comprehensive Loss
(37.2
)
 
(1.6
)
 
(58.7
)
 
60.3

 
(37.2
)
Total Tennant Company Shareholders' Equity
314.4

 
112.5

 
349.4

 
(461.9
)
 
314.4

Noncontrolling Interest
1.9

 
—

 
1.9

 
(1.9
)
 
1.9

Total Equity
316.3

 
112.5

 
351.3

 
(463.8
)
 
316.3

Total Liabilities and Total Equity
$
931.2

 
$
285.3

 
$
724.2

 
$
(948.2
)
 
$
992.5


Condensed Consolidated Statement of Cash Flows
For the nine months ended September 30, 2019
(in millions)
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Total Tennant Company
OPERATING ACTIVITIES
 
 
 
 
 
 
 
 
 
Net Cash Provided by (Used in) Operating Activities
$
43.2

 
$
(0.1
)
 
$
3.1

 
$
—

 
$
46.2

INVESTING ACTIVITIES
 
 
 
 
 
 
 
 
 
Purchases of Property, Plant and Equipment
(20.5
)
 
(0.2
)
 
(7.6
)
 
—

 
(28.3
)
Proceeds from Disposals of Property, Plant, and Equipment
0.1

 
—

 
—

 
—

 
0.1

Proceeds from Principal Payments Received on Long-Term Note Receivable
—

 
—

 
0.1

 
—

 
0.1

Acquisition of Business, Net of Cash Acquired
—

 
—

 
(8.9
)
 
—

 
(8.9
)
Purchase of Intangible Assets
—

 
—

 
(0.5
)
 
—

 
(0.5
)
Loan Payments from Parent
—

 
—

 
(0.6
)
 
0.6

 
—

Net Cash Used in Investing Activities
(20.4
)
 
(0.2
)
 
(17.5
)
 
0.6

 
(37.5
)
FINANCING ACTIVITIES
 
 
 
 
 
 
 
 
 
Proceeds from Credit Facility Borrowings
25.0

 
—

 
—

 
—

 
25.0

Loan Payments to Subsidiaries
0.6

 
—

 
—

 
(0.6
)
 
—

Repayments of Debt
(33.8
)
 
—

 
(4.1
)
 
—

 
(37.9
)
Change in Finance Lease Obligations
—

 
—

 
(0.2
)
 
—

 
(0.2
)
Proceeds from Issuances of Common Stock
2.8

 
—

 
—

 
—

 
2.8

Purchase of Noncontrolling Owner Interest
—

 
—

 
(0.5
)
 
—

 
(0.5
)
Dividends Paid
(12.0
)
 
—

 
—

 
—

 
(12.0
)
Net Cash Used in Financing Activities
(17.4
)
 
—

 
(4.8
)
 
(0.6
)
 
(22.8
)
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash
—

 
—

 
(0.3
)
 
—

 
(0.3
)
Net Decrease in Cash, Cash Equivalents and Restricted Cash
5.4

 
(0.3
)
 
(19.5
)
 
—

 
(14.4
)
Cash, Cash Equivalents and Restricted Cash at Beginning of Period
24.8

 
1.6

 
59.7

 
—

 
86.1

Cash, Cash Equivalents and Restricted Cash at End of Period
$
30.2

 
$
1.3

 
$
40.2

 
$
—

 
$
71.7

Condensed Consolidated Statement of Cash Flows
For the nine months ended September 30, 2018
(in millions)
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Total Tennant Company
OPERATING ACTIVITIES
 
 
 
 
 
 
 
 
 
Net Cash Provided by (Used in) Operating Activities
$
43.7

 
$
0.2

 
$
(0.3
)
 
$
—

 
$
43.6

INVESTING ACTIVITIES
 
 
 
 
 
 
 
 
 
Purchases of Property, Plant and Equipment
(4.5
)
 
—

 
(8.2
)
 
—

 
(12.7
)
Proceeds from Disposal of Property, Plant and Equipment
—

 
—

 
0.1

 
—

 
0.1

Proceeds from Principal Payments Received on Long-Term Note Receivable
—

 
—

 
0.8

 
—

 
0.8

Proceeds from Sale of Business
—

 
—

 
4.0

 
—

 
4.0

Purchase of Intangible Asset
(2.5
)
 
—

 
(0.1
)
 
—

 
(2.6
)
Change in Investments in Subsidiaries
(1.8
)
 
—

 
—

 
1.8

 
—

Loan Payments from Subsidiaries
1.2

 
—

 
—

 
(1.2
)
 
—

Loan Payments from Parent
—

 
—

 
1.0

 
(1.0
)
 
—

Net Cash Used in Investing Activities
(7.6
)
 
—

 
(2.4
)
 
(0.4
)
 
(10.4
)
FINANCING ACTIVITIES
 
 
 
 
 
 
 
 
 
Loan Payments to Subsidiaries
(1.0
)
 
—

 
—

 
1.0

 
—

Loan Payments to Parent
—

 
—

 
(1.2
)
 
1.2

 
—

Change in Subsidiary Equity
—

 
—

 
1.8

 
(1.8
)
 
—

Repayment of Debt
(30.0
)
 
—

 
(0.2
)
 
—

 
(30.2
)
Proceeds from Issuance of Common Stock
5.7

 
—

 
—

 
—

 
5.7

Dividends Paid
(11.3
)
 
—

 
—

 
—

 
(11.3
)
Net Cash (Used in) Provided by Financing Activities
(36.6
)
 
—

 
0.4

 
0.4

 
(35.8
)
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash
0.1

 
—

 
(2.4
)
 
—

 
(2.3
)
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash
(0.4
)
 
0.2

 
(4.7
)
 
—

 
(4.9
)
Cash, Cash Equivalents and Restricted Cash at Beginning of Period
18.5

 
0.5

 
40.0

 
—

 
59.0

Cash, Cash Equivalents and Restricted Cash at End of Period
$
18.1

 
$
0.7

 
$
35.3

 
$
—

 
$
54.1