10-Q

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended June 30, 2023

OR

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

For the transition period from ___________ to __________

Commission File Number 1-16191

__________________________________________

TENNANT COMPANY

(Exact name of registrant as specified in its charter)

Minnesota	41-0572550
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

10400 Clean Street

Eden Prairie, Minnesota 55344

(Address of principal executive offices)

(Zip Code)

(763) 540-1200

(Registrant’s telephone number, including area code)

____________________________________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.375 per share	TNC	New York Stock Exchange

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 þ No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes þ No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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	þ	Accelerated filer	o
Non-accelerated filer	o	Smaller reporting company	o
Emerging growth company	o

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.

o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes o No þ

As of July 28, 2023, there were 18,583,434 shares of common stock outstanding.

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TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION (Unaudited)		Page
Item 1.	Financial Statements	3
	Consolidated Statements of Income	3
	Consolidated Statements of Comprehensive Income	4
	Consolidated Balance Sheets	5
	Consolidated Statements of Cash Flows	6
	Consolidated Statements of Equity	8
	Notes to Consolidated Financial Statements	10
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	25
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	31
Item 4.	Controls and Procedures	31
PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	31
Item 1A.	Risk Factors	31
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	32
Item 5.	Other Information	32
Item 6.	Exhibits	33
Signatures		34

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PART I – FINANCIAL INFORMATION

Item 1.    Financial Statements

TENNANT COMPANY

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(In millions, except shares and per share data)	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Net sales	$	321.7	$	280.2	$	627.5	$	538.3
Cost of sales	182.2		174.1		362.5		333.3
Gross profit	139.5		106.1		265.0		205.0
Selling and administrative expense	87.0		79.1		168.7		155.7
Research and development expense	9.0		7.9		16.9		15.6
Gain on sale of assets	—		(3.7)		—		(3.7)
Operating income	43.5		22.8		79.4		37.4
Interest expense, net	(4.0)		(1.2)		(7.7)		(1.5)
Net foreign currency transaction gain (loss)	1.0		(1.0)		0.9		(0.4)
Other expense, net	(0.6)		(0.3)		(0.7)		(0.5)
Income before income taxes	39.9		20.3		71.9		35.0
Income tax expense	8.6		3.7		16.3		8.1
Net income	$	31.3	$	16.6	$	55.6	$	26.9
Net income per share
Basic	$	1.70	$	0.90	$	3.02	$	1.46
Diluted	$	1.68	$	0.89	$	2.98	$	1.44
Weighted average shares outstanding
Basic	18,436,367		18,507,073		18,442,862		18,485,367
Diluted	18,713,455		18,683,798		18,691,736		18,735,913

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TENNANT COMPANY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(In millions)	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Net income	$	31.3	$	16.6	$	55.6	$	26.9
Other comprehensive income (loss):
Foreign currency translation adjustments (net of related tax benefit (expense) of $0.2, $(1.0), $0.3, and $(1.4), respectively)	0.1		(16.9)		5.4		(20.7)
Derivative financial instruments (net of related tax expense of $0.4, $0.3, $0.2, and $0.2, respectively)	1.1		0.8		0.5		0.6
Total other comprehensive income (loss), net of tax	1.2		(16.1)		5.9		(20.1)
Comprehensive income	$	32.5	$	0.5	$	61.5	$	6.8

See accompanying notes to consolidated financial statements.

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TENNANT COMPANY

CONSOLIDATED BALANCE SHEETS

	(Unaudited)
(In millions, except shares and per share data)	June 30, 2023		December 31, 2022
ASSETS
Cash, cash equivalents, and restricted cash	$	95.8	$	77.4
Receivables, less allowances of $8.0 and $6.1, respectively	263.5		251.5
Inventories	198.4		206.6
Prepaid and other current assets	32.1		39.8
Total current assets	589.8		575.3
Property, plant and equipment, less accumulated depreciation of $297.4 and $279.3, respectively	184.6		179.9
Operating lease assets	32.2		31.8
Goodwill	185.6		182.0
Intangible assets, net	69.6		76.4
Other assets	46.5		39.7
Total assets	$	1,108.3	$	1,085.1
LIABILITIES AND EQUITY
Current portion of long-term debt	$	5.3	$	5.2
Accounts payable	113.0		126.1
Employee compensation and benefits	51.6		44.0
Other current liabilities	87.9		86.3
Total current liabilities	257.8		261.6
Long-term debt	272.7		295.1
Long-term operating lease liabilities	17.4		17.1
Employee benefits	13.2		13.2
Deferred income taxes	9.7		11.5
Other liabilities	15.6		14.5
Total long-term liabilities	328.6		351.4
Total liabilities	$	586.4	$	613.0
Commitments and contingencies (Note 11)
Common Stock, $0.375 par value; 60,000,000 shares authorized; 18,540,598 and 18,521,485 shares issued and outstanding, respectively	7.0		7.0
Additional paid-in capital	54.1		56.0
Retained earnings	503.8		458.0
Accumulated other comprehensive loss	(44.3)		(50.2)
Total Tennant Company shareholders' equity	520.6		470.8
Noncontrolling interest	1.3		1.3
Total equity	521.9		472.1
Total liabilities and total equity	$	1,108.3	$	1,085.1

See accompanying notes to consolidated financial statements.

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TENNANT COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In millions)	Six Months Ended June 30,
	2023		2022
OPERATING ACTIVITIES
Net income	$	55.6	$	26.9
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation expense	17.2		16.4
Amortization expense	7.5		8.4
Deferred income tax benefit	(5.6)		(4.4)
Share-based compensation expense	3.9		2.7
Bad debt and returns expense	1.7		0.7
Gain on sale of assets	—		(3.7)
Other, net	0.4		0.5
Changes in operating assets and liabilities:
Receivables	(10.9)		(9.5)
Inventories	(1.3)		(44.7)
Accounts payable	(10.5)		6.5
Employee compensation and benefits	7.0		(8.7)
Other assets and liabilities	5.2		(14.7)
Net cash provided by (used in) operating activities	70.2		(23.6)
INVESTING ACTIVITIES
Purchases of property, plant and equipment	(11.8)		(10.5)
Proceeds from sale of assets, net of cash divested	—		4.1
Investment in leased assets	(0.5)		(4.0)
Cash received from leased assets	0.3		0.3
Net cash used in investing activities	(12.0)		(10.1)
FINANCING ACTIVITIES
Proceeds from borrowings	20.0		15.0
Repayments of borrowings	(42.5)		(16.6)
Proceeds (repurchases) from exercise of stock options, net of employee tax withholdings obligations	4.2		(1.4)
Repurchases of common stock	(10.0)		—
Dividends paid	(9.8)		(9.2)
Net cash used in financing activities	(38.1)		(12.2)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(1.7)		(3.9)
Net increase (decrease) in cash, cash equivalents and restricted cash	18.4		(49.8)
Cash, cash equivalents and restricted cash at beginning of period	77.4		123.6
Cash, cash equivalents and restricted cash at end of period	$	95.8	$	73.8

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SUPPLEMENTAL CASH FLOW INFORMATION	Six Months Ended June 30,
	2023		2022
Cash paid for income taxes	$	12.3	$	10.7
Cash paid for interest	10.4		2.5
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	9.2		9.5
Lease assets obtained in exchange for new operating lease liabilities	7.4		6.5
Lease assets obtained in exchange for new financing lease liabilities	0.4		—
Supplemental non-cash investing and financing activities:
Capital expenditures in accounts payable	0.7		0.9

See accompanying notes to consolidated financial statements.

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TENNANT COMPANY

CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited)

(In millions, except shares and per share data)

	Tennant Company Shareholders
	Common Shares	Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Tennant Company Shareholders' Equity		Noncontrolling Interest		Total Equity
Balance, December 31, 2022	18,521,485	$	7.0	$	56.0	$	458.0	$	(50.2)	$	470.8	$	1.3	$	472.1
Net income		—		—		24.3		—		24.3		—		24.3
Other comprehensive income		—		—		—		4.7		4.7		—		4.7
Issue stock for directors, employee benefit and stock plans, net of related tax withholdings and repurchases of 18,468 shares	93,073	—		0.8		—		—		0.8		—		0.8
Share-based compensation		—		1.2		—		—		1.2		—		1.2
Repurchases of common stock	(73,525)	—		(5.0)		—		—		(5.0)		—		(5.0)
Dividends paid $0.265 per common share		—		—		(4.9)		—		(4.9)		—		(4.9)
Balance, March 31, 2023	18,541,033	$	7.0	$	53.0	$	477.4	$	(45.5)	$	491.9	$	1.3	$	493.2
Net income		—		—		31.3		—		31.3		—		31.3
Other comprehensive income		—		—		—		1.2		1.2		—		1.2
Issue stock for directors, employee benefit and stock plans, net of related tax withholdings of 4,258 shares	69,345	—		3.4		—		—		3.4		—		3.4
Share-based compensation		—		2.7		—		—		2.7		—		2.7
Repurchases of common stock	(69,780)	—		(5.0)		—		—		(5.0)		—		(5.0)
Dividends paid $0.265 per common share		—		—		(4.9)		—		(4.9)		—		(4.9)
Balance, June 30, 2023	18,540,598	$	7.0	$	54.1	$	503.8	$	(44.3)	$	520.6	$	1.3	$	521.9

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	Tennant Company Shareholders
	Common Shares	Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Tennant Company Shareholders' Equity		Noncontrolling Interest		Total Equity
Balance, December 31, 2021	18,535,116	$	7.0	$	54.1	$	410.6	$	(37.9)	$	433.8	$	1.3	$	435.1
Net income		—		—		10.3		—		10.3		—		10.3
Other comprehensive loss		—		—		—		(4.0)		(4.0)		—		(4.0)
Issue stock for directors, employee benefit and stock plans, net of related tax withholdings and repurchases of 24,025 shares	44,700	—		(1.3)		—		—		(1.3)		—		(1.3)
Share-based compensation		—		1.8		—		—		1.8		—		1.8
Dividends paid $0.25 per common share		—		—		(4.6)		—		(4.6)		—		(4.6)
Balance, March 31, 2022	18,579,816	$	7.0	$	54.6	$	416.3	$	(41.9)	$	436.0	$	1.3	$	437.3
Net income		—		—		16.6		—		16.6		—		16.6
Other comprehensive income		—		—		—		(16.1)		(16.1)		—		(16.1)
Issue stock for directors, employee benefit and stock plans, net of related tax withholdings of 2,071 shares	9,859	—		(0.1)		—		—		(0.1)		—		(0.1)
Share-based compensation		—		0.9		—		—		0.9		—		0.9
Dividends paid $0.25 per common share		—		—		(4.6)		—		(4.6)		—		(4.6)
Balance, June 30, 2022	18,589,675	$	7.0	$	55.4	$	428.3	$	(58.0)	$	432.7	$	1.3	$	434.0

See accompanying notes to consolidated financial statements.

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TENNANT COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(In millions, except shares and per share data)

1.    Summary of Significant Accounting Policies

Tennant Company ("the Company", "we", "us", or "our") is a world leader in designing, manufacturing and marketing solutions that empower customers to achieve quality cleaning performance, reduce environmental impact and help create a cleaner, safer, healthier world. The Company is committed to creating and commercializing breakthrough, sustainable cleaning innovations to enhance its broad suite of products, including floor maintenance and cleaning equipment, detergent-free and other sustainable cleaning technologies, aftermarket parts and consumables, equipment maintenance and repair service, and asset management solutions.

Our products are used in many types of environments, including retail establishments, distribution centers, factories and warehouses, public venues such as arenas and stadiums, office buildings, schools and universities, hospitals and clinics, and more.

Customers include contract cleaners to whom organizations outsource facilities maintenance as well as businesses that perform facilities maintenance themselves. The Company reaches these customers through the industry's largest direct sales and service organization and through a strong and well-supported network of authorized distributors worldwide.

Basis of Presentation – The accompanying unaudited consolidated financial statements have been prepared in accordance with the U.S. Securities and Exchange Commission (“SEC”) requirements for interim reporting. In our opinion, the consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary for the fair presentation of our financial position and results of operations.

These statements should be read in conjunction with the consolidated financial statements and notes included in our annual report on Form 10-K for the year ended December 31, 2022. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year.

2.    Newly Adopted Accounting Pronouncements

Reference Rate Reform

In March 2020, the Financial Accounting Standards Board ("FASB") issued ASU No. 2020-04, Reference Rate Reform (Topic 848), and in December 2022 subsequently issued ASU 2022-06, to temporarily ease the potential burden in accounting for reference rate reform. The standard provides optional expedients and exceptions for applying generally accepted accounting principles to certain contract modifications, hedging relationships, and other transactions affected by the reference rate reform, which affects the London Inter-bank Offered Rate ("LIBOR"), if certain criteria are met. The guidance was effective upon issuance and can generally be applied through December 31, 2024. There has been no material impact to our financial condition, results of operations, or cash flows from reference rate reform as of June 30, 2023. See Note 7 for information on the replacement of LIBOR with the Secured Overnight Financing Rate ("SOFR") in our Credit Agreements.

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3.    Revenue

Disaggregation of Revenue

The following tables illustrate the disaggregation of revenue by geographic area, groups of similar products and services and sales channels:

Net sales by geographic area

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Americas	$	216.6	$	178.4	$	421.0	$	338.7
Europe, Middle East and Africa	80.0		77.3		162.1		156.0
Asia Pacific	25.1		24.5		44.4		43.6
Total	$	321.7	$	280.2	$	627.5	$	538.3

Net sales are attributed to each geographic area based on the end-user country and are net of intercompany sales.

Net sales by groups of similar products and services

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Equipment	$	203.2	$	172.1	$	389.6	$	330.2
Parts and consumables	71.0		66.1		144.4		126.7
Service and other	47.5		42.0		93.5		81.4
Total	$	321.7	$	280.2	$	627.5	$	538.3

Net sales by sales channel

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Sales direct to consumer	$	218.7	$	179.7	$	423.8	$	343.5
Sales to distributors	103.0		100.5		203.7		194.8
Total	$	321.7	$	280.2	$	627.5	$	538.3

Contract Liabilities

Sales Returns

The right of return may exist explicitly or implicitly with our customers. When the right of return exists, we adjust the transaction price for the estimated effect of returns. We estimate the expected returns using the expected value method by assessing historical sales levels and the timing and magnitude of historical sales return levels as a percent of sales and projecting this experience into the future.

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Sales Incentives

Our sales contracts may contain various customer incentives, such as volume-based rebates or other promotions. We reduce the transaction price for certain customer programs and incentive offerings that represent variable consideration. Sales incentives given to our customers are recorded using the most likely amount approach for estimating the amount of consideration to which the Company will be entitled. We forecast the most likely amount of the incentive to be paid at the time of sale, update this forecast quarterly, and adjust the transaction price accordingly to reflect the new amount of incentives expected to be earned by the customer. A majority of our customer incentives are settled within one year. We record our accruals for volume-based rebates and other promotions in other current liabilities on our consolidated balance sheets.

The change in our sales incentive accrual balance was as follows:

	Six Months Ended June 30,
	2023		2022
Beginning balance	$	20.0	$	19.9
Additions to sales incentive accrual	14.0		10.3
Contract payments	(15.5)		(16.4)
Foreign currency fluctuations	0.1		(0.5)
Ending balance	$	18.6	$	13.3

Deferred Revenue

We sell separately priced prepaid contracts to our customers where we receive payment at the inception of the contract and defer recognition of the consideration received because we have to satisfy future performance obligations. Our deferred revenue balance is primarily attributed to prepaid maintenance contracts on our machines ranging from 12 months to 60 months. In circumstances where prepaid contracts are bundled with machines, we use an observable price to determine stand-alone selling price for separate performance obligations.

The change in the deferred revenue balance was as follows:

	Six Months Ended June 30,
	2023		2022
Beginning balance	$	9.3	$	11.2
Increase in deferred revenue representing our obligation to satisfy future performance obligations	10.3		15.6
Decrease in deferred revenue for amounts recognized in net sales for satisfied performance obligations	(10.8)		(14.8)
Foreign currency fluctuations	0.1		(0.3)
Ending balance	$	8.9	$	11.7

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At June 30, 2023, $6.7 million and $2.2 million of deferred revenue was reported in other current liabilities and other liabilities, respectively, on our consolidated balance sheets. Of these amounts, we expect to recognize the following approximate amounts in net sales in the following periods:

Remaining 2023	$	5.4
2024	1.8
2025	1.0
2026	0.4
2027	0.2
Thereafter	0.1
Total	$	8.9

At December 31, 2022, $6.6 million and $2.7 million of deferred revenue was reported in other current liabilities and other liabilities, respectively, on our consolidated balance sheets.

4.    Management Actions

Restructuring Actions

During the three and six months ended June 30, 2023 and June 30, 2022, we incurred restructuring expenses as part of our ongoing global reorganization efforts. The following pre-tax restructuring charges were included in selling and administrative expense in the consolidated statements of income.

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Severance-related costs	$	1.2	$	0.1	$	1.2	$	0.3
Other costs	—		0.3		—		0.3
Total pre-tax restructuring costs	$	1.2	$	0.4	$	1.2	$	0.6

The charge in 2023 impacted the Europe, Middle East and Africa (EMEA) and Asia Pacific (APAC) operating segments. The charge in 2022 primarily impacted the Americas operating segments. Our restructuring actions represent the continued execution of a multi-year enterprise strategy to drive increased productivity throughout our operations.

A reconciliation of the beginning and ending liability balances for severance-related costs is as follows:

	Six Months Ended June 30,
	2023		2022
Beginning balance	$	1.7	$	4.9
New charges	1.1		0.9
Cash payments	(1.4)		(1.9)
Foreign currency fluctuations	—		(0.5)
Adjustments to accrual	0.1		(0.6)
Ending balance	$	1.5	$	2.8

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5.    Inventories

Inventories are valued at the lower of cost or net realizable value and consisted of the following:

	June 30, 2023		December 31, 2022
Inventories carried at LIFO:
Finished goods(a)	$	76.5	$	85.0
Raw materials and work-in-process	43.0		46.4
Excess of FIFO over LIFO cost(b)	(46.6)		(49.7)
Total LIFO inventories	$	72.9	$	81.7
Inventories carried at FIFO:
Finished goods(a)	$	81.3	$	68.9
Raw materials and work-in-process	44.2		56.0
Total FIFO inventories	$	125.5	$	124.9
Total inventories	$	198.4	$	206.6

(a)Finished goods include machines, parts and consumables and component parts that are used in our products.

(b)The difference between replacement cost and the stated LIFO inventory value is not materially different from the reserve for the LIFO valuation method.

6.    Goodwill and Intangible Assets

The changes in the carrying amount of goodwill for the six months ended June 30, 2023 were as follows:

	Goodwill		Accumulated Impairment Losses		Total
Balance as of December 31, 2022	$	218.8	$	(36.8)	$	182.0
Foreign currency fluctuations	5.8		(2.2)		3.6
Balance as of June 30, 2023	$	224.6	$	(39.0)	$	185.6

The balances of acquired intangible assets, excluding goodwill, were as follows:

	Customer Lists		Trade Names		Technology		Total
Balance as of June 30, 2023
Original cost	$	148.8	$	29.0	$	16.2	$	194.0
Accumulated amortization	(94.5)		(17.6)		(12.3)		(124.4)
Carrying value	$	54.3	$	11.4	$	3.9	$	69.6
Weighted average original life (in years)	15		11		11
Balance as of December 31, 2022
Original cost	$	146.6	$	28.6	$	15.9	$	191.1
Accumulated amortization	(87.5)		(15.9)		(11.3)		(114.7)
Carrying value	$	59.1	$	12.7	$	4.6	$	76.4
Weighted average original life (in years)	15		11		11

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Amortization expense on intangible assets for the three and six months ended June 30, 2023 was $3.6 million and $7.5 million, respectively. Amortization expense on intangible assets for the three and six months ended June 30, 2022 was $3.9 million and $8.4 million, respectively.

Estimated aggregate amortization expense based on the current carrying value of amortizable intangible assets for each of the five succeeding years and thereafter is as follows:

Remaining 2023	$	7.1
2024	13.3
2025	11.9
2026	10.6
2027	7.3
Thereafter	19.4
Total	$	69.6

7.    Debt

2021 Credit Agreement

On April 5, 2021, we and certain of our foreign subsidiaries entered into an Amended and Restated Credit Agreement (the “2021 Credit Agreement”) with JPMorgan Chase Bank, N.A. as administrative agent. The 2021 Credit Agreement provides us and certain of our foreign subsidiaries access to a senior secured credit facility until April 3, 2026, consisting of a term loan facility in an amount up to $100.0 million and a revolving facility in an amount up to $450.0 million with an option to expand the credit facility by up to $275.0 million, with the consent of the lenders willing to provide additional borrowings in the form of increases to their revolving facility commitment or funding of incremental term loans. Borrowings may be denominated in U.S. dollars or certain other currencies.

On November 10, 2022, we further amended the 2021 Credit Agreement (the "Amendment") to update the benchmark provisions to replace LIBOR with Term SOFR (as defined in the Amendment) as the reference rate for purposes of calculating interest under the 2021 Credit Agreement. Pursuant to the Amendment, borrowings denominated in U.S. dollars bear interest at a rate per annum equal to (a) the Term SOFR Rate (as defined in the Amendment) plus a credit spread adjustment of 0.10% per annum, but in any case, not less than 0%, plus an additional spread of 1.10% to 1.70%, depending on the Company’s leverage ratio, or (b) the Alternate Base Rate (as defined in the Amendment), which is the greatest of (i) the prime rate, (ii) the federal funds rate plus 0.50% and (iii) the adjusted Term SOFR Rate for a one month period, but in any case, not less than 1.0%, plus, in any such case, 1.0%, plus an additional spread of 0.10% to 0.70%, depending on the Company’s leverage ratio. All other material terms included in the 2021 Credit Agreement remain unchanged as a result of the Amendment.

In connection with the 2021 Credit Agreement, we reaffirmed our security interest in favor of the lenders in substantially all our personal property and pledged the stock of our domestic subsidiaries and 65% of the stock of our first-tier foreign subsidiaries. The obligations under the 2021 Credit Agreement are also guaranteed by certain of our first-tier domestic subsidiaries, and those subsidiaries also provided a security interest in their similar personal property.

The 2021 Credit Agreement restricts the payment of dividends or repurchasing of stock requiring that, after giving effect to such payments, no default exists or would result from such payment. Additionally, cash dividends are restricted to $7.5 million per quarter and approved levels of other restricted payments range from $60.0 million to unlimited based on our net leverage ratio (not taking into account any acquisition holiday) after giving effect to such payment.

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The 2021 Credit Agreement contains customary representations, warranties and covenants, including but not limited to covenants restricting our ability to incur indebtedness and liens and to merge or consolidate with another entity. Further, the 2021 Credit Agreement contains the following covenants:

• A covenant requiring us to maintain an indebtedness to EBITDA ratio, determined as of the end of each of our fiscal quarters, of no greater than 3.50 to 1.00, with certain alternative requirements for permitted acquisitions greater than $50.0 million;

• A covenant requiring us to maintain an EBITDA to interest expense ratio for a period of four consecutive fiscal quarters as of the end of each quarter of no less than 3.00 to 1.00; and

• A covenant restricting us from paying dividends or repurchasing stock if, after giving effect to such payments and assuming no default exists or would result from such payment, our leverage ratio is greater than 2.50 to 1.00, in such case limiting such payments to $60.0 million during any fiscal year.

Debt Outstanding

Debt outstanding consisted of the following:

	June 30, 2023		December 31, 2022
Credit facility borrowings:
Revolving credit facility borrowings	$	185.0	$	205.0
Term loan facility borrowings	92.5		95.0
Secured borrowings	0.2		0.2
Finance lease liabilities	0.3		0.1
Total debt	278.0		300.3
Less: current portion of long-term debt(a)	(5.3)		(5.2)
Long-term debt	$	272.7	$	295.1

(a)As of June 30, 2023, the Company is required to repay $5.0 million in outstanding credit facility borrowings and $0.3 million of finance lease liabilities over the next 12 months.

As of June 30, 2023, we had outstanding borrowings of $185.0 million and $92.5 million under our revolving facility and term loan facility, respectively. We had letters of credit and bank guarantees outstanding in the amount of $3.1 million, leaving approximately $261.9 million of unused borrowing capacity on our revolving facility. Commitment fees on unused lines of credit for the six months ended June 30, 2023 were $0.4 million. The overall weighted average cost of debt was approximately 6.3% and net of related cross-currency swap instruments and fixed rate interest rate swap instruments was approximately 5.2%. Further details regarding the cross-currency swap instrument are discussed in Note 9.

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8.    Warranty

We record a liability for warranty claims at the time of sale. The amount of the liability is based on the trend in the historical ratio of claims to sales, the historical length of time between the sale and resulting warranty claim, new product introductions and other factors. Warranty terms on machines generally range from one to four years. The majority of the liability for estimated warranty claims represents amounts to be paid out in the near term for qualified warranty issues.

The changes in warranty reserves were as follows:

	Six Months Ended June 30,
	2023		2022
Beginning balance	$	10.9	$	10.4
Additions charged to expense	5.5		4.4
Foreign currency fluctuations	0.1		(0.1)
Claims paid	(5.4)		(4.1)
Ending balance	$	11.1	$	10.6

9.    Derivatives

Hedge Accounting and Hedging Programs

We recognize all derivative instruments as either assets or liabilities in our consolidated balance sheets and measure them at fair value. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting.

We evaluate hedge effectiveness on our hedges that are designated and qualify for hedge accounting at the inception of the hedge prospectively, as well as retrospectively, and record any ineffective portion of the hedging instruments along with the time value of purchased contracts in the same line item of the income statement as the item being hedged on our consolidated statements of income.

Our hedging policy establishes maximum limits for each counterparty to mitigate any concentration of risk.

Balance Sheet Hedges

We hedge our net recognized foreign currency denominated assets and liabilities with foreign exchange forward contracts to reduce the risk that the value of these assets and liabilities will be adversely affected by changes in exchange rates. These contracts hedge assets and liabilities that are denominated in foreign currencies and are carried at fair value as either assets or liabilities on the consolidated balance sheets with changes in the fair value recorded to net foreign currency transaction gain (loss) in our consolidated statements of income. These contracts do not subject us to material balance sheet risk due to exchange rate movements because gains and losses on these derivatives are intended to offset gains and losses on the assets and liabilities being hedged. At June 30, 2023 and December 31, 2022, the notional amounts of foreign currency forward exchange contracts outstanding not designated as hedging instruments were $106.7 million and $83.7 million, respectively.

Cash Flow Hedges

We manage our floating rate debt exposure using interest rate swaps. Fixed rate swaps are used to reduce our risk of the possibility of increased interest costs. We entered into an aggregate $120 million notional amount of interest rate swaps effective December 1, 2022 that exchange a variable rate of interest for a fixed rate of interest of 4.076%. These interest rate swaps are designated as cash flow hedges. These swaps are scheduled to mature on December 1, 2026.

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Fair Value Hedges

On April 5, 2022, we entered into Euro to U.S. dollar foreign exchange cross-currency swaps associated with an intercompany loan from a wholly owned European subsidiary. We enter into these foreign exchange cross-currency swaps to hedge the foreign currency risk associated with this intercompany loan, and accordingly, they are not speculative in nature. These cross-currency swaps are designated as fair value hedges. As of June 30, 2023 and December 31, 2022, these cross-currency swaps included €83.6 million and €84.8 million of total notional value, respectively. As of June 30, 2023, the aggregated scheduled interest payments over the course of the loan and related swaps amounted to €8.6 million. The scheduled maturity and principal payment of the loan and related swaps of €75.0 million are due in April 2027.

Net Investment Hedges

On April 5, 2022, we entered into Euro to U.S. dollar foreign exchange cross-currency swaps to hedge our exposure to adverse foreign currency exchange rate movements between Tennant Company and a wholly owned European subsidiary. We enter into these fixed-to-fixed cross-currency swap agreements to protect a designated monetary amount of the Company’s net investment in its Euro functional currency subsidiary against the risk of changes in the Euro to U.S. dollar foreign exchange rate. These cross-currency swaps are designated as net investment hedges. As of June 30, 2023 and December 31, 2022, the cross-currency swaps included €75.0 million of total notional values. These swaps are scheduled to mature in April 2027.

The fair value of derivative instruments on our consolidated balance sheets was as follows:

	Derivative Assets					Derivative Liabilities
	Balance Sheet Location	June 30, 2023		December 31, 2022		Balance Sheet Location	June 30, 2023		December 31, 2022
Derivatives designated as cash flow hedges:
Interest rate swaps	Other current assets	$	1.4	$	0.8	Other current liabilities	$	—	$	—
Interest rate swaps	Other assets	—		—		Other liabilities	0.9		1.8
Derivatives designated as fair value hedges:
Cross-currency swaps	Other current assets	1.5		1.4		Other current liabilities	—		—
Cross-currency swaps	Other assets	—		0.8		Other liabilities	1.5		—
Derivatives designated as net investment hedges:
Cross-currency swaps	Other current assets	1.4		1.2		Other current liabilities	—		—
Cross-currency swaps	Other assets	—		0.5		Other liabilities	1.7		—
Derivatives not designated as hedging instruments:
Foreign currency forward contracts	Other current assets	$	0.5	$	0.1	Other current liabilities	$	0.5	$	0.3

As of June 30, 2023, we anticipate reclassifying $2.7 million of gains from accumulated other comprehensive loss to net income during the next 12 months.

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The following tables include the amounts in the consolidated statements of income in which the effects of derivatives designated as hedging instruments are recorded:

	Three Months Ended June 30,
	2023				2022
	Total		Gain (Loss) on Hedging		Total		Gain (Loss) on Hedging
Derivatives designated as cash flow hedges:
Interest expense, net	$	(4.0)	$	0.2	$	(1.2)	$	—
Net foreign currency transaction gain (loss)	1.0		—		(1.0)		0.2
Derivatives designated as fair value hedges:
Interest expense, net	(4.0)		0.2		(1.2)		0.4
Net foreign currency transaction gain (loss)	1.0		(0.4)		(1.0)		4.3
Derivatives designated as net investment hedges:
Interest expense, net	$	(4.0)	$	0.3	$	(1.2)	$	0.3

	Six Months Ended June 30,
	2023				2022
	Total		Gain (Loss) on Hedging		Total		Gain (Loss) on Hedging
Derivatives designated as cash flow hedges:
Net sales	$	627.5	$	—	$	538.3	$	—
Interest expense, net	(7.7)		0.3		(1.5)		0.7
Net foreign currency transaction gain (loss)	0.9		—		(0.4)		4.7
Derivatives designated as fair value hedges:
Interest expense, net	(7.7)		1.4		(1.5)		0.4
Net foreign currency transaction gain (loss)	0.9		0.8		(0.4)		4.3
Derivatives designated as net investment hedges:
Interest expense, net	$	(7.7)	$	1.2	$	(1.5)	$	0.3

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The effect of derivative instruments designated as hedges and derivative instruments not designated as hedges in our consolidated statements of income was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Derivatives designated as cash flow hedges:
Net gain recognized in other comprehensive income, net of tax(a)	$	2.3	$	—	$	1.4	$	3.8
Net gain reclassified from accumulated other comprehensive loss into income, net of tax, effective portion to interest expense, net	0.2		—		0.3		0.5
Net gain reclassified from accumulated other comprehensive loss into income, net of tax, effective portion to net foreign currency transaction gain (loss)	—		0.1		—		3.6
Derivatives designated as fair value hedges:
Net (loss) gain recognized in other comprehensive income (loss), net of tax(a)	(0.7)		4.7		—		4.7
Net gain reclassified from accumulated other comprehensive loss into income, net of tax, effective portion to interest expense, net	0.3		0.3		0.6		0.3
Net gain reclassified from accumulated other comprehensive loss into income, net of tax, effective portion to net foreign currency transaction gain (loss)	—		3.3		—		3.3
Derivatives designated as net investment hedges:
Net (loss) gain recognized in other comprehensive income (loss), net of tax(a)	(1.0)		—		(1.1)		—
Net gain reclassified from accumulated other comprehensive loss into income, net of tax, effective portion to interest expense, net	0.3		0.2		0.5		0.2
Derivatives not designated as hedging instruments:
Net gain recognized in income(b)	$	0.1	$	4.2	$	0.9	$	2.6

(a)Net change in the fair value of the effective portion classified in other comprehensive income (loss).

(b)Classified in net foreign currency transaction gain (loss).

10.    Fair Value Measurements

Estimates of fair value for financial assets and financial liabilities are based on the framework established in the accounting guidance for fair value measurements. The framework defines fair value, provides guidance for measuring fair value and requires certain disclosures. The framework discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow) and the cost approach (cost to replace the service capacity of an asset or replacement cost). The framework utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:

•Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

•Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

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•Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions.

Our population of assets and liabilities subject to fair value measurements at June 30, 2023 was as follows:

	Fair Value		Level 1		Level 2		Level 3
Assets:
Foreign currency forward exchange contracts	$	0.5	$	—	$	0.5	$	—
Cross-currency swaps	2.9		—		2.9		—
Interest rate swaps	1.4		—		1.4		—
Total assets	4.8		—		4.8		—
Liabilities:
Foreign currency forward exchange contracts	0.5		—		0.5		—
Interest rate swaps	0.9		—		0.9		—
Total liabilities	$	1.4	$	—	$	1.4	$	—

Our population of assets and liabilities subject to fair value measurements at December 31, 2022 was as follows:

	Fair Value		Level 1		Level 2		Level 3
Assets:
Foreign currency forward exchange contracts	$	0.1	$	—	$	0.1	$	—
Cross-currency swaps	3.9		—		3.9		—
Interest rate swaps	0.8		—		0.8		—
Total assets	4.8		—		4.8		—
Liabilities:
Foreign currency forward exchange contracts	0.3		—		0.3		—
Interest rate swaps	1.8		—		1.8		—
Total liabilities	$	2.1	$	—	$	2.1	$	—

Our foreign currency forward exchange contracts, cross-currency swaps and interest rate swaps are valued using observable Level 2 market expectations at the measurement date and standard valuation techniques to convert future amounts to a single present value amount. Further details regarding our derivative instruments are discussed in Note 9.

The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, restricted cash, accounts receivable, other current assets, accounts payable and other current liabilities approximate fair value due to their short-term nature.

The fair value and carrying value of total debt, including current portion, was $277.1 million and $278.0 million, respectively, as of June 30, 2023. The fair value and carrying value of total debt, including current portion, was $301.8 million and $300.3 million, respectively, as of December 31, 2022. The fair value was calculated based on the borrowing rates currently available to us for bank loans with similar terms and remaining maturities, which is a Level 2 in the fair value hierarchy.

11.    Commitments and Contingencies

In the ordinary course of business, we may become liable with respect to pending and threatened litigation, tax, environmental and other matters. While the ultimate results of current claims, investigations and lawsuits involving us are unknown at this time, we do not expect that these matters will have a material adverse effect on

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our consolidated financial position or results of operations. Legal costs associated with such matters are expensed as incurred.

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12.    Shareholders' Equity

Accumulated Other Comprehensive Loss

The changes in components of accumulated other comprehensive loss, net of tax, are as follows:

	Six Months Ended June 30, 2023
	Foreign Currency Translation Adjustments		Pension and Post- Retirement Medical Benefits		Derivative Financial Instruments		Total
Beginning balance	$	(53.9)	$	2.7	$	1.0	$	(50.2)
Other comprehensive income before reclassifications	5.9		—		1.4		7.3
Amounts reclassified from accumulated other comprehensive loss	(0.5)		—		(0.9)		(1.4)
Net current period other comprehensive income	5.4		—		0.5		5.9
Ending balance	$	(48.5)	$	2.7	$	1.5	$	(44.3)

	Six Months Ended June 30, 2022
	Foreign Currency Translation Adjustments		Pension and Post- Retirement Medical Benefits		Derivative Financial Instruments		Total
Beginning balance	$	(36.0)	$	(2.1)	$	0.2	$	(37.9)
Other comprehensive (loss) income before reclassifications	(20.7)		—		8.5		(12.2)
Amounts reclassified from accumulated other comprehensive loss	—		—		(7.9)		(7.9)
Net current period other comprehensive (loss) income	(20.7)		—		0.6		(20.1)
Ending balance	$	(56.7)	$	(2.1)	$	0.8	$	(58.0)

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13.    Income Taxes

We and our subsidiaries are subject to U.S. federal income tax as well as income tax of numerous state and foreign jurisdictions. We are generally no longer subject to U.S. federal tax examinations for taxable years before 2018. The number of years which remain open for audit for U.S. state or foreign tax purposes varies by jurisdiction but generally ranges from three to five years. We are currently undergoing income tax examinations in various foreign jurisdictions. Although the outcome of these examinations cannot be currently determined, we believe that we have adequate reserves with respect to these examinations.

We recognize potential accrued interest and penalties related to unrecognized tax benefits in income tax expense. In addition to the liability of $3.6 million for unrecognized tax benefits as of June 30, 2023, there was approximately $0.4 million for accrued interest and penalties. The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate as of June 30, 2023 was $3.3 million. To the extent interest and penalties are not assessed with respect to uncertain tax positions, amounts accrued will be revised and reflected as an adjustment of the income tax expense.

14.    Share-Based Compensation

Our share-based compensation plans are described in Note 18 of our annual report on Form 10-K for the year ended December 31, 2022. During the three months ended June 30, 2023 and 2022, we recognized total share-based compensation expense of $2.7 million and $0.9 million, respectively. During the six months ended June 30, 2023 and 2022, we recognized total share-based compensation expense of $3.9 million and $2.7 million, respectively. The total excess tax recognized for share-based compensation arrangements during the six months ended June 30, 2023 and 2022 was a tax deficiency of $0.2 million and tax benefit of $0.3 million, respectively.

15.    Earnings Per Share

The computations of basic and diluted earnings per share were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Numerator:
Net income	$	31.3	$	16.6	$	55.6	$	26.9
Denominator:
Basic - weighted average shares outstanding	18,436,367		18,507,073		18,442,862		18,485,367
Effect of dilutive securities:	277,088		176,725		248,874		250,546
Diluted - weighted average shares outstanding	18,713,455		18,683,798		18,691,736		18,735,913
Basic earnings per share	$	1.70	$	0.90	$	3.02	$	1.46
Diluted earnings per share	$	1.68	$	0.89	$	2.98	$	1.44

Excluded from the dilutive securities shown above were options to purchase and shares to be paid out under share-based compensation plans of 261,376 and 698,378 shares of common stock during the three months ended June 30, 2023 and 2022, respectively. Excluded from the dilutive securities shown above were options to purchase and shares to be paid out under share-based compensation plans of 449,763 and 402,696 shares of common stock during the six months ended June 30, 2023 and 2022, respectively. These exclusions were made if the exercise prices of the options are greater than the average market price of our common stock for the period, if the number of shares we can repurchase under the treasury stock method exceeds the weighted average shares outstanding in the options or if we have a net loss, as these effects would be anti-dilutive.

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Item 2.    Management's Discussion and Analysis of Financial Condition and Results of Operations

The following Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) provides a comparison of the Company's results of operations, as well as liquidity and capital resources for the quarters ended June 30, 2023 and 2022. The MD&A should be read in conjunction with the Company's consolidated financial statements and notes included in Item 1 of this Quarterly Report. Throughout this MD&A, the Company refers to measures used by management to evaluate performance, including financial measures that are not defined under generally accepted accounting principles (GAAP) in the U.S. Net sales excluding foreign currency translation (i.e. organic sales) is not a measure of financial performance under GAAP; however, the Company believes it is useful in understanding its financial results and provides comparable measures for understanding the operating results of the Company between different periods.

Overview

Tennant Company is a world leader in designing, manufacturing and marketing solutions that empower customers to achieve quality cleaning performance, reduce environmental impact and help create a cleaner, safer, healthier world. The Company is committed to creating and commercializing breakthrough, sustainable cleaning innovations to enhance its broad suite of products, including floor maintenance and cleaning equipment, detergent-free and other sustainable cleaning technologies, aftermarket parts and consumables, equipment maintenance and repair service, and asset management solutions. Our products are used in many types of environments, including retail establishments, distribution centers, factories and warehouses, public venues such as arenas and stadiums, office buildings, schools and universities, hospitals and clinics, and more. Customers include contract cleaners to whom organizations outsource facilities maintenance as well as businesses that perform facilities maintenance themselves. The Company reaches these customers through the industry's largest direct sales and service organization and through a strong and well-supported network of authorized distributors worldwide.

Macroeconomic Events

Supply chain challenges continue to impact the global economy. Our operating performance during the second quarter of 2023 has benefited from fewer supply chain disruptions enabling us to obtain key component parts, increase production and reduce backlog. If there are additional disruptions in our supply chain, or we continue to experience certain supply shortages, it could materially or adversely impact our operating results and financial condition. We continue to address and adapt to these temporary supply chain disruptions.

As described in Part I, Item 1A - Risk Factors in the annual report on Form 10-K for the fiscal year ended December 31, 2022, we may encounter financial difficulties if the U.S. or other global economies experience an additional or continued long-term economic downturn as our product sales are sensitive to declines in capital spending by our customers. Any sustained adverse impacts to our business, the industries in which we operate, market demand for our products, and/or certain suppliers or customers may also affect our future results of operations, financial position, or cash flows. We are actively monitoring the macroeconomic environment, especially the potential impact of global supply chain constraints on material inflation, and the potential decreased demand for our products.

Outlook

Global economic conditions continue to be highly volatile and uncertainty remains regarding supply chain challenges, inflationary trends, and overall business environment. We continue to monitor the market demand for our products in EMEA and the slower than expected recovery in APAC. We anticipate that we will need to remain agile as we continue to navigate evolving challenges. We remain confident in the long-term growth trends for our products and services in the markets we serve.

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Results

The following table compares the results of operations for the three and six months ended June 30, 2023 and 2022, respectively (in millions, except per share data and percentages):

	Three Months Ended June 30,						Six Months Ended June 30,
	2023		%	2022		%	2023		%	2022		%
Net sales	$	321.7	100.0	$	280.2	100.0	$	627.5	100.0	$	538.3	100.0
Cost of sales	182.2		56.6	174.1		62.1	362.5		57.8	333.3		61.9
Gross profit	139.5		43.4	106.1		37.9	265.0		42.2	205.0		38.1
Selling and administrative expense	87.0		27.0	79.1		28.2	168.7		26.9	155.7		28.9
Research and development expense	9.0		2.8	7.9		2.8	16.9		2.7	15.6		2.9
Gain on sale of assets	—		—	(3.7)		(1.3)	—		—	(3.7)		(0.7)
Operating income	43.5		13.5	22.8		8.1	79.4		12.7	37.4		6.9
Interest expense, net	(4.0)		(1.2)	(1.2)		(0.4)	(7.7)		(1.2)	(1.5)		(0.3)
Net foreign currency transaction gain (loss)	1.0		0.3	(1.0)		(0.4)	0.9		0.1	(0.4)		(0.1)
Other expense, net	(0.6)		(0.2)	(0.3)		(0.1)	(0.7)		(0.1)	(0.5)		(0.1)
Income before income taxes	39.9		12.4	20.3		7.2	71.9		11.5	35.0		6.5
Income tax expense	8.6		2.7	3.7		1.3	16.3		2.6	8.1		1.5
Net income	$	31.3	9.7	$	16.6	5.9	$	55.6	8.9	$	26.9	5.0
Net income per share - diluted	$	1.68		$	0.89		$	2.98		$	1.44

Net Sales

Consolidated net sales for the second quarter of 2023 totaled $321.7 million, a 14.8% increase as compared to consolidated net sales of $280.2 million in the second quarter of 2022. The components of the consolidated net sales change were as follows:

	Three Months Ended June 30,	Six Months Ended June 30,
	2023 vs. 2022
Price	9.3%	10.0%
Volume	5.7%	7.9%
Organic growth	15.0%	17.9%
Foreign currency	(0.2)%	(1.3)%
Total growth	14.8%	16.6%

The 14.8% increase in consolidated net sales in the second quarter of 2023 as compared to the same period in 2022 was driven by:

•Organic sales growth of 15.0%, which excludes the effects of foreign currency exchange. The organic sales growth was primarily due to growth across all regions led by strong equipment sales, particularly in the Americas region; partly offset by

•A net unfavorable impact from foreign currency exchange across all regions of approximately 0.2%.

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The 16.6% increase in consolidated net sales in the first six months of 2023 as compared to the same period in 2022 was driven by:

•Organic sales growth of 17.9%, which excludes the effects of foreign currency exchange. The organic sales increase was primarily due to growth across all regions and product categories, led by strong sales growth in the Americas region; partly offset by

•A net unfavorable impact from foreign currency exchange across all regions of approximately 1.3%.

The following table sets forth the net sales by geographic area for the three and six months ended June 30, 2023 and 2022 (in millions, except percentages):

	Three Months Ended June 30,						Six Months Ended June 30,
	2023		2022		% Change		2023		2022		% Change
Americas	$	216.6	$	178.4	21.4	%	$	421.0	$	338.7	24.3	%
Europe, Middle East and Africa	80.0		77.3		3.5	%	162.1		156.0		3.9	%
Asia Pacific	25.1		24.5		2.4	%	44.4		43.6		1.8	%
Total	$	321.7	$	280.2	14.8	%	$	627.5	$	538.3	16.6	%

Americas

Americas net sales were $216.6 million for the second quarter of 2023, an increase of 21.4% from the second quarter of 2022 driven by:

•Organic sales growth of 21.7% driven equally by price realization and volume increases in all product categories, led by strong equipment and parts and consumables sales in North America; partly offset by

•A net unfavorable impact from foreign currency exchange of approximately 0.3%.

Americas net sales were $421.0 million for the first six months of 2023, an increase of 24.3% from the first six months of 2022 driven by:

•Organic sales growth of 24.6% driven equally by price realization and volume increases in all product categories across the region; partly offset by

•A net unfavorable impact from foreign currency exchange of approximately 0.3%.

Europe, Middle East and Africa ("EMEA")

EMEA net sales were $80.0 million for the second quarter of 2023, an increase of 3.5% from the second quarter of 2022 driven by:

•Organic sales growth of 2.4% driven by price realization in both equipment and service product categories across the region partly offset by volume declines; and

•A net favorable impact from foreign currency exchange of approximately 1.1%.

EMEA net sales were $162.1 million for the first six months of 2023, an increase of 3.9% from the first six months of 2022 driven by:

•Organic sales growth of 6.5% driven by price realization partly offset by volume declines across all product categories. The organic growth was led by equipment across our direct geographies, especially in Iberia; partly offset by

•A net unfavorable impact from foreign currency exchange of approximately 2.6%.

Asia Pacific ("APAC")

APAC net sales were $25.1 million for the second quarter of 2023, an increase of 2.4% from the second quarter of 2022 driven by:

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•Organic sales growth of 6.3% driven primarily by price realization in Australia and volume growth in China; partly offset by

•A net unfavorable impact from foreign currency exchange of approximately 3.9%.

APAC net sales were $44.4 million for the first six months of 2023, an increase of 1.8% from the first six months of 2022 driven by:

•Organic sales growth of 6.6% driven by equipment sales growth across our direct geographies, especially Australia, China and India; partly offset by

•A net unfavorable impact from foreign currency exchange of approximately 4.8%.

Gross Profit

Gross profit margin of 43.4% was 550 basis points higher in the second quarter of 2023 compared to the second quarter of 2022. Gross profit margin of 42.2% was 410 basis points higher in the first six months of 2023 compared to the first six months of 2022. The increase in both periods was driven by pricing realization, more than offsetting the impact of multi-year inflation on materials and labor.

Our LIFO benefit for the three and six months ended June 30, 2023 was $0.2 million and $3.2 million, respectively, compared to a LIFO charge of $4.9 million and $6.0 million in the three and six months ended June 30, 2022, respectively. The benefit in each period was attributable to a stabilized inflation environment on materials in 2023.

Operating Expense

Selling and Administrative Expense

Selling and administrative expense ("S&A expense") was $87.0 million for the second quarter of 2023, an increase of $7.9 million compared to the second quarter of 2022. S&A expense was $168.7 million for the first six months of 2023, an increase of $13.0 million compared to the first six months of 2022. The S&A expense increase in each period was primarily driven by higher variable costs associated with increased operating performance and investments in strategic initiatives.

As a percentage of net sales, S&A expense for the second quarter of 2023 decreased 120 basis points to 27.0% from 28.2% in the second quarter of 2022. S&A expense as a percentage of net sales for the first six months of 2023 decreased 200 basis points to 26.9% from 28.9% in the first six months of 2022. The decrease in both periods was driven by the leverage attributable to our sales and gross margin growth, as well as our cost-containment initiatives.

Research and Development Expense

Research and development expense ("R&D expense") was $9.0 million, or 2.8% of net sales, for the second quarter of 2023, flat as a percentage of net sales compared to the second quarter of 2022. R&D expense was $16.9 million, or 2.7% of net sales, for the first six months of 2023, essentially flat compared to the first six months of 2022.

We continue to invest in developing innovative products and technologies at levels necessary to propel our technology and innovation leadership position.

Total Other Expense, Net

Interest Expense, Net

Interest expense, net was $4.0 million in the second quarter of 2023 compared to $1.2 million in the same period of 2022. Interest expense, net was $7.7 million in the first six months of 2023 compared to $1.5 million in the first six months of 2022. The increase in both periods was the result of higher debt levels coupled with rising interest rates on our variable interest rate debt. The following table compares the debt levels, average interest rate, interest income and interest expense for the three and six months ended June 30, 2023 and 2022, respectively (in millions, except percentages):

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	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Weighted Average Outstanding Borrowings	$	295.9		$	270.7		$	306.0		$	270.7
Avg. interest rate	6.28		%	1.98		%	6.04		%	1.67		%
Interest expense	4.6			1.3			9.2			2.3
Interest income	(0.6)			(0.1)			(1.5)			(0.8)
Interest expense, net	$	4.0		$	1.2		$	7.7		$	1.5

Our debt portfolio as of June 30, 2023 was comprised of debt predominately in U.S. dollars. The Company manages its floating rate debt exposure using fixed rate interest rate swaps to reduce the Company's risk of the possibility of increased interest costs. The Company has an aggregate $120 million notional amount of interest rate swaps that exchange a variable rate of interest for a fixed rate of interest of 4.076% over the term of the agreements.

Net Foreign Currency Transaction Gain (Loss)

Net foreign currency transaction gain was $1.0 million in the second quarter of 2023 compared to a loss of $1.0 million in the second quarter of 2022. Net foreign currency transaction gain was $0.9 million in the first six months of 2023 compared to a loss of $0.4 million in the first six months of 2022. The favorable impact was primarily due to strengthening of the Brazilian real relative to the euro during this time.

Income Taxes

The effective tax rate for the second quarter of 2023 was 21.6% compared to 18.2% for the second quarter of 2022. The increase was primarily due to a decrease in discrete tax benefits recognized during the quarter partly offset by favorable changes in the mix in forecasted earnings by country.

The effective tax rate for the first six months of 2023 was 22.7% compared to 23.1% for the first six months of 2022. The decrease was primarily due to favorable changes the mix in forecasted earnings by country.

In general, it is our practice and intention to permanently reinvest the earnings of our foreign subsidiaries and repatriate earnings only when the tax impact is zero or immaterial. No deferred taxes have been provided for withholding taxes or other taxes that would result upon repatriation of our foreign investments to the U.S.

Backlog

Backlog is one of the many indicators of business conditions in the Company's markets. Our order backlog was $255.2 million at June 30, 2023 compared to $326.4 million at December 31, 2022. The decrease was the result of the Company's ability to obtain key component parts and increase production levels. Backlog includes orders that can be cancelled or postponed at the option of the customer at any time without penalty.

Liquidity and Capital Resources

Liquidity

Cash, cash equivalents and restricted cash totaled $95.8 million at June 30, 2023 compared to $77.4 million as of December 31, 2022. Wherever possible, cash management is centralized and intercompany financing is used to provide working capital to subsidiaries as needed. Our current ratio was 2.3 as of June 30, 2023 and 2.2 as of December 31, 2022. Our primary working capital, which is comprised of accounts receivable, inventories and accounts payables, was $348.9 million as of June 30, 2023 and $332.0 million as of December 31, 2022. Our debt-to-capital ratio was 34.8% as of June 30, 2023 compared to 38.9% as of December 31, 2022.

As of June 30, 2023, we had letters of credit and bank guarantees outstanding in the amount of $3.1 million, leaving approximately $261.9 million of unused borrowing capacity on our revolving facility.

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Cash Flow from Operating Activities

Net cash provided by operating activities during the six months ended June 30, 2023 was $70.2 million compared to net cash used by operating activities of $23.6 million during the six months ended June 30, 2022. The increase was the result of improved operating performance and moderating investments in working capital.

Cash Flow from Investing Activities

Net cash used in investing activities during the six months ended June 30, 2023 was $12.0 million compared to net cash used by investing activities of $10.1 million during the six months ended June 30, 2022. The increase in cash outflows was the result of higher capital expenditures as the Company continues to deploy cash flow toward operational capital needs.

Cash Flow from Financing Activities

Net cash used in financing activities during the six months ended June 30, 2023 was $38.1 million compared to net cash used by financing activities of $12.2 million during the six months ended June 30, 2022. The increase in cash outflows was driven by repayments of borrowings and share purchases. The Company repurchased 143,305 shares of common stock for $10.0 million during the first six months of 2023 as we continue to focus on returning capital to shareholders in line with our capital allocation priorities.

Newly Issued Accounting Guidance

See Note 2 to the consolidated financial statements for information on new accounting pronouncements.

No other new accounting pronouncements issued but not yet effective have had, or are expected to have, a material impact on our results of operations or financial position.

Cautionary Statement Relevant to Forward-Looking Information

This Quarterly Report, including “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Item 2, contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “project,” or “continue” or similar words or the negative thereof. These statements do not relate to strictly historical or current facts and provide current expectations of forecasts of future events. Any such expectations or forecasts of future events are subject to a variety of factors. Particular risks and uncertainties presently facing us include: geopolitical and economic uncertainty throughout the world; uncertainty surrounding the impacts and duration of the COVID-19 pandemic; our ability to comply with global laws and regulations; our ability to adapt to customer pricing sensitivities; the competition in our business; fluctuations in the cost, quality or availability of raw materials and purchased components; our ability to adjust pricing to respond to cost pressures; unforeseen product liability claims or product quality issues; our ability to attract, retain and develop key personnel and create effective succession planning strategies; our ability to effectively develop and manage strategic planning and growth processes and the related operational plans; our ability to successfully upgrade and evolve our information technology systems; our ability to successfully protect our information technology systems from cybersecurity risks; the occurrence of a significant business interruption; our ability to maintain the health and safety of our workers; our ability to integrate acquisitions; and our ability to develop and commercialize new innovative products and services.

We caution that forward-looking statements must be considered carefully and that actual results may differ in material ways due to risks and uncertainties both known and unknown. Shareholders, potential investors and other readers are urged to consider these factors in evaluating forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. Additional information about factors that could materially affect our results can be found in Part I, Item 1A, Risk Factors in our annual report on Form 10-K for the year ended December 31, 2022.

We undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. Investors are advised to consult any further disclosures by us in our filings with the SEC and in other written statements on related subjects. It is not

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possible to anticipate or foresee all risk factors, and investors should not consider any list of such factors to be an exhaustive or complete list of all risks or uncertainties.

Item 3.    Quantitative and Qualitative Disclosures About Market Risk

There have been no material changes in our market risk since December 31, 2022. For additional information, refer to Item 7A of our annual report on Form 10-K for the year ended December 31, 2022.

Item 4.    Controls and Procedures

Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and our Principal Financial and Accounting Officer, has evaluated the effectiveness of our disclosure controls and procedures as of June 30, 2023 (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)). Based on that evaluation, our Chief Executive Officer and our Principal Financial and Accounting Officer have concluded that our disclosure controls and procedures are effective to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and that such information is accumulated and communicated to our management, including our principal executive and our principal financial officers, as appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Controls

There were no changes in our internal controls over financial reporting during the most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II – OTHER INFORMATION

Item 1.    Legal Proceedings

There are no material pending legal proceedings other than ordinary routine litigation incidental to our business.

Item 1A.    Risk Factors

We documented our risk factors in Item 1A of Part I of our annual report on Form 10-K for the year ended December 31, 2022. There have been no material changes to our risk factors since the filing of that report.

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Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds

Share repurchases are made from time to time in the open market or through privately negotiated transactions. 969,028 shares remain authorized under the most recent share repurchase program approved by the Board of Directors on October 31, 2016.

For the Quarter Ended June 30, 2023	Total Number of Shares Purchased(1)	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
April 1-30, 2023	41,675	$	67.25	41,675	997,133
May 1-31, 2023	32,363	$	77.44	28,105	969,028
June 1-30, 2023	—	$	—	—	969,028
Total	74,038	$	71.70	69,780	969,028

(1)Includes 4,258 shares delivered or attested to in satisfaction of the exercise price and/or tax withholding obligations by employees who exercised stock options or restricted stock under employee share-based compensation plans.

Item 5. Other Information

During the three months ended June 30, 2023, no director or officer of the Company adopted, modified or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

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Item 6.     Exhibits

Item #	Description	Method of Filing
3i	Restated Articles of Incorporation	Incorporated by reference to Exhibit 3i to the Company’s report on Form 10-Q for the quarterly period ended June 30, 2006.
3ii	Amended and Restated By-Laws	Incorporated by reference to Exhibit 3,2 to the Company’s Form 8-K dated January 19, 2023.
3iii	Articles of Amendment of Restated Articles of Incorporation of Tennant Company	Incorporated by reference to Exhibit 3iii to the Company's report on Form 10-Q for the quarterly period ended March 31, 2018.
31.1	Rule 13a-14(a)/15d-14(a) Certification of CEO	Filed herewith electronically.
31.2	Rule 13a-14(a)/15d-14(a) Certification of CFO	Filed herewith electronically.
32.1	Section 1350 Certification of CEO	Filed herewith electronically.
32.2	Section 1350 Certification of CFO	Filed herewith electronically.
101	The following financial information from Tennant Company's Quarterly Report on Form 10-Q for the period ended June 30, 2023, formatted in Inline eXtensible Business Reporting Language (iXBRL): (i) Consolidated Statements of Income for the three and six months ended June 30, 2023 and 2022; (ii) Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2023 and 2022; (iii) Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022; (iv) Consolidated Statements of Cash Flows for the six months ended June 30, 2023 and 2022; (v) Consolidated Statements of Equity for the six months ended June 30, 2023 and 2022; and (vi) Notes to the Consolidated Financial Statements	Filed herewith electronically.
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)	Filed herewith electronically.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		TENNANT COMPANY
Date:	August 4, 2023	/s/ Fay West
		Fay West Senior Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)

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HIDDEN IXBRL

35

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, David W. Huml, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Tennant Company;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	August 4, 2023	/s/ David W. Huml
		David W. Huml President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Fay West, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Tennant Company;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	August 4, 2023	/s/ Fay West
		Fay West Senior Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Tennant Company (the “Company”) on Form 10-Q for the period ended June 30, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, David W. Huml, President and Chief Executive Officer, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in this periodic report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	August 4, 2023	/s/ David W. Huml
		David W. Huml President and Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Tennant Company (the “Company”) on Form 10-Q for the period ended June 30, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Fay West, Senior Vice President and Chief Financial Officer, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in this periodic report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	August 4, 2023	/s/ Fay West
		Fay West Senior Vice President and Chief Financial Officer

XML

Cover - shares	6 Months Ended
	Jun. 30, 2023	Jul. 28, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	1-16191
Entity Registrant Name	TENNANT CO
Entity Incorporation, State or Country Code	MN
Entity Tax Identification Number	41-0572550
Entity Address, Address Line One	10400 Clean Street
Entity Address, City or Town	Eden Prairie
Entity Address, State or Province	MN
Entity Address, Postal Zip Code	55344
City Area Code	763
Local Phone Number	540-1200
Title of 12(b) Security	Common Stock, par value $0.375 per share
Trading Symbol	TNC
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		18,583,434
Entity Central Index Key	0000097134
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false

XML

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Net sales	$ 321.7	$ 280.2	$ 627.5	$ 538.3
Cost of sales	182.2	174.1	362.5	333.3
Gross profit	139.5	106.1	265.0	205.0
Selling and administrative expense	87.0	79.1	168.7	155.7
Research and development expense	9.0	7.9	16.9	15.6
Gain on sale of assets	0.0	(3.7)	0.0	(3.7)
Operating income	43.5	22.8	79.4	37.4
Interest expense, net	(4.0)	(1.2)	(7.7)	(1.5)
Net foreign currency transaction gain (loss)	1.0	(1.0)	0.9	(0.4)
Other expense, net	(0.6)	(0.3)	(0.7)	(0.5)
Income before income taxes	39.9	20.3	71.9	35.0
Income tax expense	8.6	3.7	16.3	8.1
Net income	$ 31.3	$ 16.6	$ 55.6	$ 26.9
Net income per share
Net income per share, Basic (in dollars per share)	$ 1.70	$ 0.90	$ 3.02	$ 1.46
Net income per share, Diluted (in dollars per share)	$ 1.68	$ 0.89	$ 2.98	$ 1.44
Weighted average shares outstanding
Weighted average shares outstanding, Basic (in shares)	18,436,367	18,507,073	18,442,862	18,485,367
Weighted average shares outstanding, Diluted (in shares)	18,713,455	18,683,798	18,691,736	18,735,913

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 31.3	$ 16.6	$ 55.6	$ 26.9
Other comprehensive income (loss):
Foreign currency translation adjustments (net of related tax benefit (expense) of $0.2, $(1.0), $0.3, and $(1.4), respectively)	0.1	(16.9)	5.4	(20.7)
Derivative financial instruments (net of related tax expense of $0.4, $0.3, $0.2, and $0.2, respectively)	1.1	0.8	0.5	0.6
Total other comprehensive income (loss), net of tax	1.2	(16.1)	5.9	(20.1)
Comprehensive income	$ 32.5	$ 0.5	$ 61.5	$ 6.8

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parentheticals) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Foreign currency translation adjustments tax benefit (expense)	$ 0.2	$ (1.0)	$ 0.3	$ (1.4)
Cash flow hedge tax expense	$ 0.4	$ 0.3	$ 0.2	$ 0.2

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
ASSETS
Cash, cash equivalents, and restricted cash	$ 95.8	$ 77.4
Receivables, less allowances of $8.0 and $6.1, respectively	263.5	251.5
Inventories	198.4	206.6
Prepaid and other current assets	32.1	39.8
Total current assets	589.8	575.3
Property, plant and equipment, less accumulated depreciation of $297.4 and $279.3, respectively	184.6	179.9
Operating lease assets	32.2	31.8
Goodwill	185.6	182.0
Intangible assets, net	69.6	76.4
Other assets	46.5	39.7
Total assets	1,108.3	1,085.1
LIABILITIES AND EQUITY
Current portion of long-term debt	5.3	5.2
Accounts payable	113.0	126.1
Employee compensation and benefits	51.6	44.0
Other current liabilities	87.9	86.3
Total current liabilities	257.8	261.6
Long-term debt	272.7	295.1
Long-term operating lease liabilities	17.4	17.1
Employee benefits	13.2	13.2
Deferred income taxes	9.7	11.5
Other liabilities	15.6	14.5
Total long-term liabilities	328.6	351.4
Total liabilities	586.4	613.0
Commitments and contingencies (Note 11)
Common Stock, $0.375 par value; 60,000,000 shares authorized; 18,540,598 and 18,521,485 shares issued and outstanding, respectively	7.0	7.0
Additional paid-in capital	54.1	56.0
Retained earnings	503.8	458.0
Accumulated other comprehensive loss	(44.3)	(50.2)
Total Tennant Company shareholders' equity	520.6	470.8
Noncontrolling interest	1.3	1.3
Total equity	521.9	472.1
Total liabilities and total equity	$ 1,108.3	$ 1,085.1

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CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Allowance for credit loss	$ 8.0	$ 6.1
Accumulated depreciation	$ 297.4	$ 279.3
Common stock, par value (in dollars per share)	$ 0.375	$ 0.375
Common stock, shares authorized (in shares)	60,000,000	60,000,000
Common stock, shares issued (in shares)	18,540,598	18,540,598
Common stock, shares outstanding (in shares)	18,521,485	18,521,485

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
OPERATING ACTIVITIES
Net income	$ 55.6	$ 26.9
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation expense	17.2	16.4
Amortization expense	7.5	8.4
Deferred income tax benefit	(5.6)	(4.4)
Share-based compensation expense	3.9	2.7
Bad debt and returns expense	1.7	0.7
Gain on sale of assets	0.0	(3.7)
Other, net	0.4	0.5
Changes in operating assets and liabilities:
Receivables	(10.9)	(9.5)
Inventories	(1.3)	(44.7)
Accounts payable	(10.5)	6.5
Employee compensation and benefits	7.0	(8.7)
Other assets and liabilities	5.2	(14.7)
Net cash provided by (used in) operating activities	70.2	(23.6)
INVESTING ACTIVITIES
Purchases of property, plant and equipment	(11.8)	(10.5)
Proceeds from sale of assets, net of cash divested	0.0	4.1
Investment in leased assets	(0.5)	(4.0)
Cash received from leased assets	0.3	0.3
Net cash used in investing activities	(12.0)	(10.1)
FINANCING ACTIVITIES
Proceeds from borrowings	20.0	15.0
Repayments of borrowings	(42.5)	(16.6)
Proceeds (repurchases) from exercise of stock options, net of employee tax withholdings obligations	4.2	(1.4)
Repurchases of common stock	(10.0)	0.0
Dividends paid	(9.8)	(9.2)
Net cash used in financing activities	(38.1)	(12.2)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(1.7)	(3.9)
Net increase (decrease) in cash, cash equivalents and restricted cash	18.4	(49.8)
Cash, cash equivalents and restricted cash at beginning of period	77.4	123.6
Cash, cash equivalents and restricted cash at end of period	95.8	73.8
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for income taxes	12.3	10.7
Cash paid for interest	10.4	2.5
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	9.2	9.5
Lease assets obtained in exchange for new operating lease liabilities	7.4	6.5
Lease assets obtained in exchange for new financing lease liabilities	0.4	0.0
Supplemental non-cash investing and financing activities:
Capital expenditures in accounts payable	$ 0.7	$ 0.9

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CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions	Total	Tennant Company Shareholders' Equity	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Noncontrolling Interest
Beginning balance (in shares) at Dec. 31, 2021			18,535,116
Beginning balance at Dec. 31, 2021	$ 435.1	$ 433.8	$ 7.0	$ 54.1	$ 410.6	$ (37.9)	$ 1.3
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	10.3	10.3			10.3
Other comprehensive income	(4.0)	(4.0)				(4.0)
Issue stock for directors, employee benefit and stock plans, net of related tax withholdings and repurchases (in shares)			44,700
Issue stock for directors, employee benefit and stock plans, net of related tax withholdings and repurchases of shares	(1.3)	(1.3)		(1.3)
Share-based compensation	1.8	1.8		1.8
Dividends paid per common share	(4.6)	(4.6)			(4.6)
Ending balance (in shares) at Mar. 31, 2022			18,579,816
Ending balance at Mar. 31, 2022	$ 437.3	436.0	$ 7.0	54.6	416.3	(41.9)	1.3
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends paid per common share (in dollars per share)	$ 0.25
Beginning balance (in shares) at Dec. 31, 2021			18,535,116
Beginning balance at Dec. 31, 2021	$ 435.1	433.8	$ 7.0	54.1	410.6	(37.9)	1.3
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	26.9
Ending balance (in shares) at Jun. 30, 2022			18,589,675
Ending balance at Jun. 30, 2022	434.0	432.7	$ 7.0	55.4	428.3	(58.0)	1.3
Beginning balance (in shares) at Mar. 31, 2022			18,579,816
Beginning balance at Mar. 31, 2022	437.3	436.0	$ 7.0	54.6	416.3	(41.9)	1.3
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	16.6	16.6			16.6
Other comprehensive income	(16.1)	(16.1)				(16.1)
Issue stock for directors, employee benefit and stock plans, net of related tax withholdings and repurchases (in shares)			9,859
Issue stock for directors, employee benefit and stock plans, net of related tax withholdings and repurchases of shares	(0.1)	(0.1)		(0.1)
Share-based compensation	0.9	0.9		0.9
Dividends paid per common share	(4.6)	(4.6)			(4.6)
Ending balance (in shares) at Jun. 30, 2022			18,589,675
Ending balance at Jun. 30, 2022	$ 434.0	432.7	$ 7.0	55.4	428.3	(58.0)	1.3
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends paid per common share (in dollars per share)	$ 0.25
Beginning balance (in shares) at Dec. 31, 2022	18,521,485		18,521,485
Beginning balance at Dec. 31, 2022	$ 472.1	470.8	$ 7.0	56.0	458.0	(50.2)	1.3
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	24.3	24.3			24.3
Other comprehensive income	4.7	4.7				4.7
Issue stock for directors, employee benefit and stock plans, net of related tax withholdings and repurchases (in shares)			93,073
Issue stock for directors, employee benefit and stock plans, net of related tax withholdings and repurchases of shares	0.8	0.8		0.8
Share-based compensation	1.2	1.2		1.2
Repurchases of common stock (in shares)			(73,525)
Repurchases of common stock	(5.0)	(5.0)		(5.0)
Dividends paid per common share	(4.9)	(4.9)			(4.9)
Ending balance (in shares) at Mar. 31, 2023			18,541,033
Ending balance at Mar. 31, 2023	$ 493.2	491.9	$ 7.0	53.0	477.4	(45.5)	1.3
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends paid per common share (in dollars per share)	$ 0.265
Beginning balance (in shares) at Dec. 31, 2022	18,521,485		18,521,485
Beginning balance at Dec. 31, 2022	$ 472.1	470.8	$ 7.0	56.0	458.0	(50.2)	1.3
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 55.6
Ending balance (in shares) at Jun. 30, 2023	18,521,485		18,540,598
Ending balance at Jun. 30, 2023	$ 521.9	520.6	$ 7.0	54.1	503.8	(44.3)	1.3
Beginning balance (in shares) at Mar. 31, 2023			18,541,033
Beginning balance at Mar. 31, 2023	493.2	491.9	$ 7.0	53.0	477.4	(45.5)	1.3
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	31.3	31.3			31.3
Other comprehensive income	1.2	1.2				1.2
Issue stock for directors, employee benefit and stock plans, net of related tax withholdings and repurchases (in shares)			69,345
Issue stock for directors, employee benefit and stock plans, net of related tax withholdings and repurchases of shares	3.4	3.4		3.4
Share-based compensation	2.7	2.7		2.7
Repurchases of common stock (in shares)			(69,780)
Repurchases of common stock	(5.0)	(5.0)		(5.0)
Dividends paid per common share	$ (4.9)	(4.9)			(4.9)
Ending balance (in shares) at Jun. 30, 2023	18,521,485		18,540,598
Ending balance at Jun. 30, 2023	$ 521.9	$ 520.6	$ 7.0	$ 54.1	$ 503.8	$ (44.3)	$ 1.3
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends paid per common share (in dollars per share)	$ 0.265

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CONSOLIDATED STATEMENTS OF EQUITY (Parentheticals) - $ / shares	3 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022
Statement of Stockholders' Equity [Abstract]
Shares withheld for taxes (in shares)	4,258	18,468	2,071	24,025
Dividends paid per common share (in dollars per share)	$ 0.265	$ 0.265	$ 0.25	$ 0.25

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Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Tennant Company ("the Company", "we", "us", or "our") is a world leader in designing, manufacturing and marketing solutions that empower customers to achieve quality cleaning performance, reduce environmental impact and help create a cleaner, safer, healthier world. The Company is committed to creating and commercializing breakthrough, sustainable cleaning innovations to enhance its broad suite of products, including floor maintenance and cleaning equipment, detergent-free and other sustainable cleaning technologies, aftermarket parts and consumables, equipment maintenance and repair service, and asset management solutions.

Our products are used in many types of environments, including retail establishments, distribution centers, factories and warehouses, public venues such as arenas and stadiums, office buildings, schools and universities, hospitals and clinics, and more.

Customers include contract cleaners to whom organizations outsource facilities maintenance as well as businesses that perform facilities maintenance themselves. The Company reaches these customers through the industry's largest direct sales and service organization and through a strong and well-supported network of authorized distributors worldwide.

Basis of Presentation – The accompanying unaudited consolidated financial statements have been prepared in accordance with the U.S. Securities and Exchange Commission (“SEC”) requirements for interim reporting. In our opinion, the consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary for the fair presentation of our financial position and results of operations.

These statements should be read in conjunction with the consolidated financial statements and notes included in our annual report on Form 10-K for the year ended December 31, 2022. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year.

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Newly Adopted Accounting Pronouncements

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Newly Adopted Accounting Pronouncements

Newly Adopted Accounting Pronouncements

Reference Rate Reform

In March 2020, the Financial Accounting Standards Board ("FASB") issued ASU No. 2020-04, Reference Rate Reform (Topic 848), and in December 2022 subsequently issued ASU 2022-06, to temporarily ease the potential burden in accounting for reference rate reform. The standard provides optional expedients and exceptions for applying generally accepted accounting principles to certain contract modifications, hedging relationships, and other transactions affected by the reference rate reform, which affects the London Inter-bank Offered Rate ("LIBOR"), if certain criteria are met. The guidance was effective upon issuance and can generally be applied through December 31, 2024. There has been no material impact to our financial condition, results of operations, or cash flows from reference rate reform as of June 30, 2023. See Note 7 for information on the replacement of LIBOR with the Secured Overnight Financing Rate ("SOFR") in our Credit Agreements.

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Revenue

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

Disaggregation of Revenue

The following tables illustrate the disaggregation of revenue by geographic area, groups of similar products and services and sales channels:

Net sales by geographic area

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Americas	$	216.6	$	178.4	$	421.0	$	338.7
Europe, Middle East and Africa	80.0		77.3		162.1		156.0
Asia Pacific	25.1		24.5		44.4		43.6
Total	$	321.7	$	280.2	$	627.5	$	538.3

Net sales are attributed to each geographic area based on the end-user country and are net of intercompany sales.

Net sales by groups of similar products and services

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Equipment	$	203.2	$	172.1	$	389.6	$	330.2
Parts and consumables	71.0		66.1		144.4		126.7
Service and other	47.5		42.0		93.5		81.4
Total	$	321.7	$	280.2	$	627.5	$	538.3

Net sales by sales channel

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Sales direct to consumer	$	218.7	$	179.7	$	423.8	$	343.5
Sales to distributors	103.0		100.5		203.7		194.8
Total	$	321.7	$	280.2	$	627.5	$	538.3

Contract Liabilities

Sales Returns

The right of return may exist explicitly or implicitly with our customers. When the right of return exists, we adjust the transaction price for the estimated effect of returns. We estimate the expected returns using the expected value method by assessing historical sales levels and the timing and magnitude of historical sales return levels as a percent of sales and projecting this experience into the future.

Sales Incentives

Our sales contracts may contain various customer incentives, such as volume-based rebates or other promotions. We reduce the transaction price for certain customer programs and incentive offerings that represent variable consideration. Sales incentives given to our customers are recorded using the most likely amount approach for estimating the amount of consideration to which the Company will be entitled. We forecast the most likely amount of the incentive to be paid at the time of sale, update this forecast quarterly, and adjust the transaction price accordingly to reflect the new amount of incentives expected to be earned by the customer. A majority of our customer incentives are settled within one year. We record our accruals for volume-based rebates and other promotions in other current liabilities on our consolidated balance sheets.

The change in our sales incentive accrual balance was as follows:

	Six Months Ended June 30,
	2023		2022
Beginning balance	$	20.0	$	19.9
Additions to sales incentive accrual	14.0		10.3
Contract payments	(15.5)		(16.4)
Foreign currency fluctuations	0.1		(0.5)
Ending balance	$	18.6	$	13.3

Deferred Revenue

We sell separately priced prepaid contracts to our customers where we receive payment at the inception of the contract and defer recognition of the consideration received because we have to satisfy future performance obligations. Our deferred revenue balance is primarily attributed to prepaid maintenance contracts on our machines ranging from 12 months to 60 months. In circumstances where prepaid contracts are bundled with machines, we use an observable price to determine stand-alone selling price for separate performance obligations.

The change in the deferred revenue balance was as follows:

	Six Months Ended June 30,
	2023		2022
Beginning balance	$	9.3	$	11.2
Increase in deferred revenue representing our obligation to satisfy future performance obligations	10.3		15.6
Decrease in deferred revenue for amounts recognized in net sales for satisfied performance obligations	(10.8)		(14.8)
Foreign currency fluctuations	0.1		(0.3)
Ending balance	$	8.9	$	11.7

At June 30, 2023, $6.7 million and $2.2 million of deferred revenue was reported in other current liabilities and other liabilities, respectively, on our consolidated balance sheets. Of these amounts, we expect to recognize the following approximate amounts in net sales in the following periods:

Remaining 2023	$	5.4
2024	1.8
2025	1.0
2026	0.4
2027	0.2
Thereafter	0.1
Total	$	8.9

At December 31, 2022, $6.6 million and $2.7 million of deferred revenue was reported in other current liabilities and other liabilities, respectively, on our consolidated balance sheets.

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Management Actions

6 Months Ended

Jun. 30, 2023

Restructuring and Related Activities [Abstract]

Management Actions

Management Actions

Restructuring Actions

During the three and six months ended June 30, 2023 and June 30, 2022, we incurred restructuring expenses as part of our ongoing global reorganization efforts. The following pre-tax restructuring charges were included in selling and administrative expense in the consolidated statements of income.

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Severance-related costs	$	1.2	$	0.1	$	1.2	$	0.3
Other costs	—		0.3		—		0.3
Total pre-tax restructuring costs	$	1.2	$	0.4	$	1.2	$	0.6

The charge in 2023 impacted the Europe, Middle East and Africa (EMEA) and Asia Pacific (APAC) operating segments. The charge in 2022 primarily impacted the Americas operating segments. Our restructuring actions represent the continued execution of a multi-year enterprise strategy to drive increased productivity throughout our operations.

A reconciliation of the beginning and ending liability balances for severance-related costs is as follows:

	Six Months Ended June 30,
	2023		2022
Beginning balance	$	1.7	$	4.9
New charges	1.1		0.9
Cash payments	(1.4)		(1.9)
Foreign currency fluctuations	—		(0.5)
Adjustments to accrual	0.1		(0.6)
Ending balance	$	1.5	$	2.8

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Inventories

6 Months Ended

Jun. 30, 2023

Inventory Disclosure [Abstract]

Inventories

Inventories

Inventories are valued at the lower of cost or net realizable value and consisted of the following:

	June 30, 2023		December 31, 2022
Inventories carried at LIFO:
Finished goods(a)	$	76.5	$	85.0
Raw materials and work-in-process	43.0		46.4
Excess of FIFO over LIFO cost(b)	(46.6)		(49.7)
Total LIFO inventories	$	72.9	$	81.7
Inventories carried at FIFO:
Finished goods(a)	$	81.3	$	68.9
Raw materials and work-in-process	44.2		56.0
Total FIFO inventories	$	125.5	$	124.9
Total inventories	$	198.4	$	206.6

(a)Finished goods include machines, parts and consumables and component parts that are used in our products.

(b)The difference between replacement cost and the stated LIFO inventory value is not materially different from the reserve for the LIFO valuation method.

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Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill and Intangible Assets

The changes in the carrying amount of goodwill for the six months ended June 30, 2023 were as follows:

	Goodwill		Accumulated Impairment Losses		Total
Balance as of December 31, 2022	$	218.8	$	(36.8)	$	182.0
Foreign currency fluctuations	5.8		(2.2)		3.6
Balance as of June 30, 2023	$	224.6	$	(39.0)	$	185.6

The balances of acquired intangible assets, excluding goodwill, were as follows:

	Customer Lists		Trade Names		Technology		Total
Balance as of June 30, 2023
Original cost	$	148.8	$	29.0	$	16.2	$	194.0
Accumulated amortization	(94.5)		(17.6)		(12.3)		(124.4)
Carrying value	$	54.3	$	11.4	$	3.9	$	69.6
Weighted average original life (in years)	15		11		11
Balance as of December 31, 2022
Original cost	$	146.6	$	28.6	$	15.9	$	191.1
Accumulated amortization	(87.5)		(15.9)		(11.3)		(114.7)
Carrying value	$	59.1	$	12.7	$	4.6	$	76.4
Weighted average original life (in years)	15		11		11

Amortization expense on intangible assets for the three and six months ended June 30, 2023 was $3.6 million and $7.5 million, respectively. Amortization expense on intangible assets for the three and six months ended June 30, 2022 was $3.9 million and $8.4 million, respectively.

Estimated aggregate amortization expense based on the current carrying value of amortizable intangible assets for each of the five succeeding years and thereafter is as follows:

Remaining 2023	$	7.1
2024	13.3
2025	11.9
2026	10.6
2027	7.3
Thereafter	19.4
Total	$	69.6

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Debt

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Debt

Debt

2021 Credit Agreement

On April 5, 2021, we and certain of our foreign subsidiaries entered into an Amended and Restated Credit Agreement (the “2021 Credit Agreement”) with JPMorgan Chase Bank, N.A. as administrative agent. The 2021 Credit Agreement provides us and certain of our foreign subsidiaries access to a senior secured credit facility until April 3, 2026, consisting of a term loan facility in an amount up to $100.0 million and a revolving facility in an amount up to $450.0 million with an option to expand the credit facility by up to $275.0 million, with the consent of the lenders willing to provide additional borrowings in the form of increases to their revolving facility commitment or funding of incremental term loans. Borrowings may be denominated in U.S. dollars or certain other currencies.

On November 10, 2022, we further amended the 2021 Credit Agreement (the "Amendment") to update the benchmark provisions to replace LIBOR with Term SOFR (as defined in the Amendment) as the reference rate for purposes of calculating interest under the 2021 Credit Agreement. Pursuant to the Amendment, borrowings denominated in U.S. dollars bear interest at a rate per annum equal to (a) the Term SOFR Rate (as defined in the Amendment) plus a credit spread adjustment of 0.10% per annum, but in any case, not less than 0%, plus an additional spread of 1.10% to 1.70%, depending on the Company’s leverage ratio, or (b) the Alternate Base Rate (as defined in the Amendment), which is the greatest of (i) the prime rate, (ii) the federal funds rate plus 0.50% and (iii) the adjusted Term SOFR Rate for a one month period, but in any case, not less than 1.0%, plus, in any such case, 1.0%, plus an additional spread of 0.10% to 0.70%, depending on the Company’s leverage ratio. All other material terms included in the 2021 Credit Agreement remain unchanged as a result of the Amendment.

In connection with the 2021 Credit Agreement, we reaffirmed our security interest in favor of the lenders in substantially all our personal property and pledged the stock of our domestic subsidiaries and 65% of the stock of our first-tier foreign subsidiaries. The obligations under the 2021 Credit Agreement are also guaranteed by certain of our first-tier domestic subsidiaries, and those subsidiaries also provided a security interest in their similar personal property.

The 2021 Credit Agreement restricts the payment of dividends or repurchasing of stock requiring that, after giving effect to such payments, no default exists or would result from such payment. Additionally, cash dividends are restricted to $7.5 million per quarter and approved levels of other restricted payments range from $60.0 million to unlimited based on our net leverage ratio (not taking into account any acquisition holiday) after giving effect to such payment.

The 2021 Credit Agreement contains customary representations, warranties and covenants, including but not limited to covenants restricting our ability to incur indebtedness and liens and to merge or consolidate with another entity. Further, the 2021 Credit Agreement contains the following covenants:

• A covenant requiring us to maintain an indebtedness to EBITDA ratio, determined as of the end of each of our fiscal quarters, of no greater than 3.50 to 1.00, with certain alternative requirements for permitted acquisitions greater than $50.0 million;

• A covenant requiring us to maintain an EBITDA to interest expense ratio for a period of four consecutive fiscal quarters as of the end of each quarter of no less than 3.00 to 1.00; and

• A covenant restricting us from paying dividends or repurchasing stock if, after giving effect to such payments and assuming no default exists or would result from such payment, our leverage ratio is greater than 2.50 to 1.00, in such case limiting such payments to $60.0 million during any fiscal year.

Debt Outstanding

Debt outstanding consisted of the following:

	June 30, 2023		December 31, 2022
Credit facility borrowings:
Revolving credit facility borrowings	$	185.0	$	205.0
Term loan facility borrowings	92.5		95.0
Secured borrowings	0.2		0.2
Finance lease liabilities	0.3		0.1
Total debt	278.0		300.3
Less: current portion of long-term debt(a)	(5.3)		(5.2)
Long-term debt	$	272.7	$	295.1

(a)As of June 30, 2023, the Company is required to repay $5.0 million in outstanding credit facility borrowings and $0.3 million of finance lease liabilities over the next 12 months.

As of June 30, 2023, we had outstanding borrowings of $185.0 million and $92.5 million under our revolving facility and term loan facility, respectively. We had letters of credit and bank guarantees outstanding in the amount of $3.1 million, leaving approximately $261.9 million of unused borrowing capacity on our revolving facility. Commitment fees on unused lines of credit for the six months ended June 30, 2023 were $0.4 million. The overall weighted average cost of debt was approximately 6.3% and net of related cross-currency swap instruments and fixed rate interest rate swap instruments was approximately 5.2%. Further details regarding the cross-currency swap instrument are discussed in Note 9.

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Warranty

6 Months Ended

Jun. 30, 2023

Guarantees [Abstract]

Warranty

Warranty

We record a liability for warranty claims at the time of sale. The amount of the liability is based on the trend in the historical ratio of claims to sales, the historical length of time between the sale and resulting warranty claim, new product introductions and other factors. Warranty terms on machines generally range from one to four years. The majority of the liability for estimated warranty claims represents amounts to be paid out in the near term for qualified warranty issues.

The changes in warranty reserves were as follows:

	Six Months Ended June 30,
	2023		2022
Beginning balance	$	10.9	$	10.4
Additions charged to expense	5.5		4.4
Foreign currency fluctuations	0.1		(0.1)
Claims paid	(5.4)		(4.1)
Ending balance	$	11.1	$	10.6

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Derivatives

6 Months Ended

Jun. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

Derivatives

Hedge Accounting and Hedging Programs

We recognize all derivative instruments as either assets or liabilities in our consolidated balance sheets and measure them at fair value. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting.

We evaluate hedge effectiveness on our hedges that are designated and qualify for hedge accounting at the inception of the hedge prospectively, as well as retrospectively, and record any ineffective portion of the hedging instruments along with the time value of purchased contracts in the same line item of the income statement as the item being hedged on our consolidated statements of income.

Our hedging policy establishes maximum limits for each counterparty to mitigate any concentration of risk.

Balance Sheet Hedges

We hedge our net recognized foreign currency denominated assets and liabilities with foreign exchange forward contracts to reduce the risk that the value of these assets and liabilities will be adversely affected by changes in exchange rates. These contracts hedge assets and liabilities that are denominated in foreign currencies and are carried at fair value as either assets or liabilities on the consolidated balance sheets with changes in the fair value recorded to net foreign currency transaction gain (loss) in our consolidated statements of income. These contracts do not subject us to material balance sheet risk due to exchange rate movements because gains and losses on these derivatives are intended to offset gains and losses on the assets and liabilities being hedged. At June 30, 2023 and December 31, 2022, the notional amounts of foreign currency forward exchange contracts outstanding not designated as hedging instruments were $106.7 million and $83.7 million, respectively.

Cash Flow Hedges

We manage our floating rate debt exposure using interest rate swaps. Fixed rate swaps are used to reduce our risk of the possibility of increased interest costs. We entered into an aggregate $120 million notional amount of interest rate swaps effective December 1, 2022 that exchange a variable rate of interest for a fixed rate of interest of 4.076%. These interest rate swaps are designated as cash flow hedges. These swaps are scheduled to mature on December 1, 2026.

Fair Value Hedges

On April 5, 2022, we entered into Euro to U.S. dollar foreign exchange cross-currency swaps associated with an intercompany loan from a wholly owned European subsidiary. We enter into these foreign exchange cross-currency swaps to hedge the foreign currency risk associated with this intercompany loan, and accordingly, they are not speculative in nature. These cross-currency swaps are designated as fair value hedges. As of June 30, 2023 and December 31, 2022, these cross-currency swaps included €83.6 million and €84.8 million of total notional value, respectively. As of June 30, 2023, the aggregated scheduled interest payments over the course of the loan and related swaps amounted to €8.6 million. The scheduled maturity and principal payment of the loan and related swaps of €75.0 million are due in April 2027.

Net Investment Hedges

On April 5, 2022, we entered into Euro to U.S. dollar foreign exchange cross-currency swaps to hedge our exposure to adverse foreign currency exchange rate movements between Tennant Company and a wholly owned European subsidiary. We enter into these fixed-to-fixed cross-currency swap agreements to protect a designated monetary amount of the Company’s net investment in its Euro functional currency subsidiary against the risk of changes in the Euro to U.S. dollar foreign exchange rate. These cross-currency swaps are designated as net investment hedges. As of June 30, 2023 and December 31, 2022, the cross-currency swaps included €75.0 million of total notional values. These swaps are scheduled to mature in April 2027.

The fair value of derivative instruments on our consolidated balance sheets was as follows:

	Derivative Assets					Derivative Liabilities
	Balance Sheet Location	June 30, 2023		December 31, 2022		Balance Sheet Location	June 30, 2023		December 31, 2022
Derivatives designated as cash flow hedges:
Interest rate swaps	Other current assets	$	1.4	$	0.8	Other current liabilities	$	—	$	—
Interest rate swaps	Other assets	—		—		Other liabilities	0.9		1.8
Derivatives designated as fair value hedges:
Cross-currency swaps	Other current assets	1.5		1.4		Other current liabilities	—		—
Cross-currency swaps	Other assets	—		0.8		Other liabilities	1.5		—
Derivatives designated as net investment hedges:
Cross-currency swaps	Other current assets	1.4		1.2		Other current liabilities	—		—
Cross-currency swaps	Other assets	—		0.5		Other liabilities	1.7		—
Derivatives not designated as hedging instruments:
Foreign currency forward contracts	Other current assets	$	0.5	$	0.1	Other current liabilities	$	0.5	$	0.3

As of June 30, 2023, we anticipate reclassifying $2.7 million of gains from accumulated other comprehensive loss to net income during the next 12 months.

The following tables include the amounts in the consolidated statements of income in which the effects of derivatives designated as hedging instruments are recorded:

	Three Months Ended June 30,
	2023				2022
	Total		Gain (Loss) on Hedging		Total		Gain (Loss) on Hedging
Derivatives designated as cash flow hedges:
Interest expense, net	$	(4.0)	$	0.2	$	(1.2)	$	—
Net foreign currency transaction gain (loss)	1.0		—		(1.0)		0.2
Derivatives designated as fair value hedges:
Interest expense, net	(4.0)		0.2		(1.2)		0.4
Net foreign currency transaction gain (loss)	1.0		(0.4)		(1.0)		4.3
Derivatives designated as net investment hedges:
Interest expense, net	$	(4.0)	$	0.3	$	(1.2)	$	0.3

	Six Months Ended June 30,
	2023				2022
	Total		Gain (Loss) on Hedging		Total		Gain (Loss) on Hedging
Derivatives designated as cash flow hedges:
Net sales	$	627.5	$	—	$	538.3	$	—
Interest expense, net	(7.7)		0.3		(1.5)		0.7
Net foreign currency transaction gain (loss)	0.9		—		(0.4)		4.7
Derivatives designated as fair value hedges:
Interest expense, net	(7.7)		1.4		(1.5)		0.4
Net foreign currency transaction gain (loss)	0.9		0.8		(0.4)		4.3
Derivatives designated as net investment hedges:
Interest expense, net	$	(7.7)	$	1.2	$	(1.5)	$	0.3

The effect of derivative instruments designated as hedges and derivative instruments not designated as hedges in our consolidated statements of income was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Derivatives designated as cash flow hedges:
Net gain recognized in other comprehensive income, net of tax(a)	$	2.3	$	—	$	1.4	$	3.8
Net gain reclassified from accumulated other comprehensive loss into income, net of tax, effective portion to interest expense, net	0.2		—		0.3		0.5
Net gain reclassified from accumulated other comprehensive loss into income, net of tax, effective portion to net foreign currency transaction gain (loss)	—		0.1		—		3.6
Derivatives designated as fair value hedges:
Net (loss) gain recognized in other comprehensive income (loss), net of tax(a)	(0.7)		4.7		—		4.7
Net gain reclassified from accumulated other comprehensive loss into income, net of tax, effective portion to interest expense, net	0.3		0.3		0.6		0.3
Net gain reclassified from accumulated other comprehensive loss into income, net of tax, effective portion to net foreign currency transaction gain (loss)	—		3.3		—		3.3
Derivatives designated as net investment hedges:
Net (loss) gain recognized in other comprehensive income (loss), net of tax(a)	(1.0)		—		(1.1)		—
Net gain reclassified from accumulated other comprehensive loss into income, net of tax, effective portion to interest expense, net	0.3		0.2		0.5		0.2
Derivatives not designated as hedging instruments:
Net gain recognized in income(b)	$	0.1	$	4.2	$	0.9	$	2.6

(a)Net change in the fair value of the effective portion classified in other comprehensive income (loss).

(b)Classified in net foreign currency transaction gain (loss).

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Fair Value Measurements

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Estimates of fair value for financial assets and financial liabilities are based on the framework established in the accounting guidance for fair value measurements. The framework defines fair value, provides guidance for measuring fair value and requires certain disclosures. The framework discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow) and the cost approach (cost to replace the service capacity of an asset or replacement cost). The framework utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:

•Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

•Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

•Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions.

Our population of assets and liabilities subject to fair value measurements at June 30, 2023 was as follows:

	Fair Value		Level 1		Level 2		Level 3
Assets:
Foreign currency forward exchange contracts	$	0.5	$	—	$	0.5	$	—
Cross-currency swaps	2.9		—		2.9		—
Interest rate swaps	1.4		—		1.4		—
Total assets	4.8		—		4.8		—
Liabilities:
Foreign currency forward exchange contracts	0.5		—		0.5		—
Interest rate swaps	0.9		—		0.9		—
Total liabilities	$	1.4	$	—	$	1.4	$	—

Our population of assets and liabilities subject to fair value measurements at December 31, 2022 was as follows:

	Fair Value		Level 1		Level 2		Level 3
Assets:
Foreign currency forward exchange contracts	$	0.1	$	—	$	0.1	$	—
Cross-currency swaps	3.9		—		3.9		—
Interest rate swaps	0.8		—		0.8		—
Total assets	4.8		—		4.8		—
Liabilities:
Foreign currency forward exchange contracts	0.3		—		0.3		—
Interest rate swaps	1.8		—		1.8		—
Total liabilities	$	2.1	$	—	$	2.1	$	—

Our foreign currency forward exchange contracts, cross-currency swaps and interest rate swaps are valued using observable Level 2 market expectations at the measurement date and standard valuation techniques to convert future amounts to a single present value amount. Further details regarding our derivative instruments are discussed in Note 9.

The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, restricted cash, accounts receivable, other current assets, accounts payable and other current liabilities approximate fair value due to their short-term nature.

The fair value and carrying value of total debt, including current portion, was $277.1 million and $278.0 million, respectively, as of June 30, 2023. The fair value and carrying value of total debt, including current portion, was $301.8 million and $300.3 million, respectively, as of December 31, 2022. The fair value was calculated based on the borrowing rates currently available to us for bank loans with similar terms and remaining maturities, which is a Level 2 in the fair value hierarchy.

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Commitments and Contingencies	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and ContingenciesIn the ordinary course of business, we may become liable with respect to pending and threatened litigation, tax, environmental and other matters. While the ultimate results of current claims, investigations and lawsuits involving us are unknown at this time, we do not expect that these matters will have a material adverse effect on our consolidated financial position or results of operations. Legal costs associated with such matters are expensed as incurred.

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Shareholders' Equity

6 Months Ended

Jun. 30, 2023

Stockholders' Equity Note [Abstract]

Shareholders' Equity

Shareholders' Equity

Accumulated Other Comprehensive Loss

The changes in components of accumulated other comprehensive loss, net of tax, are as follows:

	Six Months Ended June 30, 2023
	Foreign Currency Translation Adjustments		Pension and Post- Retirement Medical Benefits		Derivative Financial Instruments		Total
Beginning balance	$	(53.9)	$	2.7	$	1.0	$	(50.2)
Other comprehensive income before reclassifications	5.9		—		1.4		7.3
Amounts reclassified from accumulated other comprehensive loss	(0.5)		—		(0.9)		(1.4)
Net current period other comprehensive income	5.4		—		0.5		5.9
Ending balance	$	(48.5)	$	2.7	$	1.5	$	(44.3)

	Six Months Ended June 30, 2022
	Foreign Currency Translation Adjustments		Pension and Post- Retirement Medical Benefits		Derivative Financial Instruments		Total
Beginning balance	$	(36.0)	$	(2.1)	$	0.2	$	(37.9)
Other comprehensive (loss) income before reclassifications	(20.7)		—		8.5		(12.2)
Amounts reclassified from accumulated other comprehensive loss	—		—		(7.9)		(7.9)
Net current period other comprehensive (loss) income	(20.7)		—		0.6		(20.1)
Ending balance	$	(56.7)	$	(2.1)	$	0.8	$	(58.0)

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Income Taxes

6 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

We and our subsidiaries are subject to U.S. federal income tax as well as income tax of numerous state and foreign jurisdictions. We are generally no longer subject to U.S. federal tax examinations for taxable years before 2018. The number of years which remain open for audit for U.S. state or foreign tax purposes varies by jurisdiction but generally ranges from three to five years. We are currently undergoing income tax examinations in various foreign jurisdictions. Although the outcome of these examinations cannot be currently determined, we believe that we have adequate reserves with respect to these examinations.

We recognize potential accrued interest and penalties related to unrecognized tax benefits in income tax expense. In addition to the liability of $3.6 million for unrecognized tax benefits as of June 30, 2023, there was approximately $0.4 million for accrued interest and penalties. The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate as of June 30, 2023 was $3.3 million. To the extent interest and penalties are not assessed with respect to uncertain tax positions, amounts accrued will be revised and reflected as an adjustment of the income tax expense.

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Share-Based Compensation	6 Months Ended
	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Share-Based Compensation	Share-Based CompensationOur share-based compensation plans are described in Note 18 of our annual report on Form 10-K for the year ended December 31, 2022. During the three months ended June 30, 2023 and 2022, we recognized total share-based compensation expense of $2.7 million and $0.9 million, respectively. During the six months ended June 30, 2023 and 2022, we recognized total share-based compensation expense of $3.9 million and $2.7 million, respectively. The total excess tax recognized for share-based compensation arrangements during the six months ended June 30, 2023 and 2022 was a tax deficiency of $0.2 million and tax benefit of $0.3 million, respectively.

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Earnings Per Share

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

The computations of basic and diluted earnings per share were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Numerator:
Net income	$	31.3	$	16.6	$	55.6	$	26.9
Denominator:
Basic - weighted average shares outstanding	18,436,367		18,507,073		18,442,862		18,485,367
Effect of dilutive securities:	277,088		176,725		248,874		250,546
Diluted - weighted average shares outstanding	18,713,455		18,683,798		18,691,736		18,735,913
Basic earnings per share	$	1.70	$	0.90	$	3.02	$	1.46
Diluted earnings per share	$	1.68	$	0.89	$	2.98	$	1.44

Excluded from the dilutive securities shown above were options to purchase and shares to be paid out under share-based compensation plans of 261,376 and 698,378 shares of common stock during the three months ended June 30, 2023 and 2022, respectively. Excluded from the dilutive securities shown above were options to purchase and shares to be paid out under share-based compensation plans of 449,763 and 402,696 shares of common stock during the six months ended June 30, 2023 and 2022, respectively. These exclusions were made if the exercise prices of the options are greater than the average market price of our common stock for the period, if the number of shares we can repurchase under the treasury stock method exceeds the weighted average shares outstanding in the options or if we have a net loss, as these effects would be anti-dilutive.

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Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Pay vs Performance Disclosure
Net income	$ 31.3	$ 16.6	$ 55.6	$ 26.9

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Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation – The accompanying unaudited consolidated financial statements have been prepared in accordance with the U.S. Securities and Exchange Commission (“SEC”) requirements for interim reporting. In our opinion, the consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary for the fair presentation of our financial position and results of operations.

These statements should be read in conjunction with the consolidated financial statements and notes included in our annual report on Form 10-K for the year ended December 31, 2022. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year.

Newly Adopted Accounting Pronouncements

Newly Adopted Accounting Pronouncements

Reference Rate Reform

In March 2020, the Financial Accounting Standards Board ("FASB") issued ASU No. 2020-04, Reference Rate Reform (Topic 848), and in December 2022 subsequently issued ASU 2022-06, to temporarily ease the potential burden in accounting for reference rate reform. The standard provides optional expedients and exceptions for applying generally accepted accounting principles to certain contract modifications, hedging relationships, and other transactions affected by the reference rate reform, which affects the London Inter-bank Offered Rate ("LIBOR"), if certain criteria are met. The guidance was effective upon issuance and can generally be applied through December 31, 2024. There has been no material impact to our financial condition, results of operations, or cash flows from reference rate reform as of June 30, 2023. See Note 7 for information on the replacement of LIBOR with the Secured Overnight Financing Rate ("SOFR") in our Credit Agreements.

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Revenue (Tables)

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Revenue

The following tables illustrate the disaggregation of revenue by geographic area, groups of similar products and services and sales channels:

Net sales by geographic area

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Americas	$	216.6	$	178.4	$	421.0	$	338.7
Europe, Middle East and Africa	80.0		77.3		162.1		156.0
Asia Pacific	25.1		24.5		44.4		43.6
Total	$	321.7	$	280.2	$	627.5	$	538.3

Net sales are attributed to each geographic area based on the end-user country and are net of intercompany sales.

Net sales by groups of similar products and services

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Equipment	$	203.2	$	172.1	$	389.6	$	330.2
Parts and consumables	71.0		66.1		144.4		126.7
Service and other	47.5		42.0		93.5		81.4
Total	$	321.7	$	280.2	$	627.5	$	538.3

Net sales by sales channel

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Sales direct to consumer	$	218.7	$	179.7	$	423.8	$	343.5
Sales to distributors	103.0		100.5		203.7		194.8
Total	$	321.7	$	280.2	$	627.5	$	538.3

Schedule of Change in Sales Incentive Accrual Balance and Deferred Revenue Balance

The change in our sales incentive accrual balance was as follows:

	Six Months Ended June 30,
	2023		2022
Beginning balance	$	20.0	$	19.9
Additions to sales incentive accrual	14.0		10.3
Contract payments	(15.5)		(16.4)
Foreign currency fluctuations	0.1		(0.5)
Ending balance	$	18.6	$	13.3

The change in the deferred revenue balance was as follows:

	Six Months Ended June 30,
	2023		2022
Beginning balance	$	9.3	$	11.2
Increase in deferred revenue representing our obligation to satisfy future performance obligations	10.3		15.6
Decrease in deferred revenue for amounts recognized in net sales for satisfied performance obligations	(10.8)		(14.8)
Foreign currency fluctuations	0.1		(0.3)
Ending balance	$	8.9	$	11.7

Schedule of Recognition of Net Sales in Future Periods

Of these amounts, we expect to recognize the following approximate amounts in net sales in the following periods:

Remaining 2023	$	5.4
2024	1.8
2025	1.0
2026	0.4
2027	0.2
Thereafter	0.1
Total	$	8.9

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Management Actions (Tables)

6 Months Ended

Jun. 30, 2023

Restructuring and Related Activities [Abstract]

Schedule of Pre-tax Restructuring Charges

The following pre-tax restructuring charges were included in selling and administrative expense in the consolidated statements of income.

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Severance-related costs	$	1.2	$	0.1	$	1.2	$	0.3
Other costs	—		0.3		—		0.3
Total pre-tax restructuring costs	$	1.2	$	0.4	$	1.2	$	0.6

Schedule of Reconciliation of Liability Balance of Severance and Related Costs

A reconciliation of the beginning and ending liability balances for severance-related costs is as follows:

	Six Months Ended June 30,
	2023		2022
Beginning balance	$	1.7	$	4.9
New charges	1.1		0.9
Cash payments	(1.4)		(1.9)
Foreign currency fluctuations	—		(0.5)
Adjustments to accrual	0.1		(0.6)
Ending balance	$	1.5	$	2.8

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Inventories (Tables)

6 Months Ended

Jun. 30, 2023

Inventory Disclosure [Abstract]

Schedule of Inventories

Inventories are valued at the lower of cost or net realizable value and consisted of the following:

	June 30, 2023		December 31, 2022
Inventories carried at LIFO:
Finished goods(a)	$	76.5	$	85.0
Raw materials and work-in-process	43.0		46.4
Excess of FIFO over LIFO cost(b)	(46.6)		(49.7)
Total LIFO inventories	$	72.9	$	81.7
Inventories carried at FIFO:
Finished goods(a)	$	81.3	$	68.9
Raw materials and work-in-process	44.2		56.0
Total FIFO inventories	$	125.5	$	124.9
Total inventories	$	198.4	$	206.6

(a)Finished goods include machines, parts and consumables and component parts that are used in our products.

(b)The difference between replacement cost and the stated LIFO inventory value is not materially different from the reserve for the LIFO valuation method.

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Goodwill and Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Changes in the Carrying Amount of Goodwill

The changes in the carrying amount of goodwill for the six months ended June 30, 2023 were as follows:

	Goodwill		Accumulated Impairment Losses		Total
Balance as of December 31, 2022	$	218.8	$	(36.8)	$	182.0
Foreign currency fluctuations	5.8		(2.2)		3.6
Balance as of June 30, 2023	$	224.6	$	(39.0)	$	185.6

Schedule of Acquired Intangible Assets

The balances of acquired intangible assets, excluding goodwill, were as follows:

	Customer Lists		Trade Names		Technology		Total
Balance as of June 30, 2023
Original cost	$	148.8	$	29.0	$	16.2	$	194.0
Accumulated amortization	(94.5)		(17.6)		(12.3)		(124.4)
Carrying value	$	54.3	$	11.4	$	3.9	$	69.6
Weighted average original life (in years)	15		11		11
Balance as of December 31, 2022
Original cost	$	146.6	$	28.6	$	15.9	$	191.1
Accumulated amortization	(87.5)		(15.9)		(11.3)		(114.7)
Carrying value	$	59.1	$	12.7	$	4.6	$	76.4
Weighted average original life (in years)	15		11		11

Schedule of Estimated Aggregate Amortization Expense

Estimated aggregate amortization expense based on the current carrying value of amortizable intangible assets for each of the five succeeding years and thereafter is as follows:

Remaining 2023	$	7.1
2024	13.3
2025	11.9
2026	10.6
2027	7.3
Thereafter	19.4
Total	$	69.6

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Debt (Tables)

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Schedule of Debt Outstanding

Debt outstanding consisted of the following:

	June 30, 2023		December 31, 2022
Credit facility borrowings:
Revolving credit facility borrowings	$	185.0	$	205.0
Term loan facility borrowings	92.5		95.0
Secured borrowings	0.2		0.2
Finance lease liabilities	0.3		0.1
Total debt	278.0		300.3
Less: current portion of long-term debt(a)	(5.3)		(5.2)
Long-term debt	$	272.7	$	295.1

(a)As of June 30, 2023, the Company is required to repay $5.0 million in outstanding credit facility borrowings and $0.3 million of finance lease liabilities over the next 12 months.

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Warranty (Tables)

6 Months Ended

Jun. 30, 2023

Guarantees [Abstract]

Schedule of Changes in Warranty Reserves

The changes in warranty reserves were as follows:

	Six Months Ended June 30,
	2023		2022
Beginning balance	$	10.9	$	10.4
Additions charged to expense	5.5		4.4
Foreign currency fluctuations	0.1		(0.1)
Claims paid	(5.4)		(4.1)
Ending balance	$	11.1	$	10.6

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Derivatives (Tables)

6 Months Ended

Jun. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Fair Value of Derivative Instruments

The fair value of derivative instruments on our consolidated balance sheets was as follows:

	Derivative Assets					Derivative Liabilities
	Balance Sheet Location	June 30, 2023		December 31, 2022		Balance Sheet Location	June 30, 2023		December 31, 2022
Derivatives designated as cash flow hedges:
Interest rate swaps	Other current assets	$	1.4	$	0.8	Other current liabilities	$	—	$	—
Interest rate swaps	Other assets	—		—		Other liabilities	0.9		1.8
Derivatives designated as fair value hedges:
Cross-currency swaps	Other current assets	1.5		1.4		Other current liabilities	—		—
Cross-currency swaps	Other assets	—		0.8		Other liabilities	1.5		—
Derivatives designated as net investment hedges:
Cross-currency swaps	Other current assets	1.4		1.2		Other current liabilities	—		—
Cross-currency swaps	Other assets	—		0.5		Other liabilities	1.7		—
Derivatives not designated as hedging instruments:
Foreign currency forward contracts	Other current assets	$	0.5	$	0.1	Other current liabilities	$	0.5	$	0.3

Schedule of Effects of Derivatives Designated as Hedging Instruments

The following tables include the amounts in the consolidated statements of income in which the effects of derivatives designated as hedging instruments are recorded:

	Three Months Ended June 30,
	2023				2022
	Total		Gain (Loss) on Hedging		Total		Gain (Loss) on Hedging
Derivatives designated as cash flow hedges:
Interest expense, net	$	(4.0)	$	0.2	$	(1.2)	$	—
Net foreign currency transaction gain (loss)	1.0		—		(1.0)		0.2
Derivatives designated as fair value hedges:
Interest expense, net	(4.0)		0.2		(1.2)		0.4
Net foreign currency transaction gain (loss)	1.0		(0.4)		(1.0)		4.3
Derivatives designated as net investment hedges:
Interest expense, net	$	(4.0)	$	0.3	$	(1.2)	$	0.3

	Six Months Ended June 30,
	2023				2022
	Total		Gain (Loss) on Hedging		Total		Gain (Loss) on Hedging
Derivatives designated as cash flow hedges:
Net sales	$	627.5	$	—	$	538.3	$	—
Interest expense, net	(7.7)		0.3		(1.5)		0.7
Net foreign currency transaction gain (loss)	0.9		—		(0.4)		4.7
Derivatives designated as fair value hedges:
Interest expense, net	(7.7)		1.4		(1.5)		0.4
Net foreign currency transaction gain (loss)	0.9		0.8		(0.4)		4.3
Derivatives designated as net investment hedges:
Interest expense, net	$	(7.7)	$	1.2	$	(1.5)	$	0.3

The effect of derivative instruments designated as hedges and derivative instruments not designated as hedges in our consolidated statements of income was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Derivatives designated as cash flow hedges:
Net gain recognized in other comprehensive income, net of tax(a)	$	2.3	$	—	$	1.4	$	3.8
Net gain reclassified from accumulated other comprehensive loss into income, net of tax, effective portion to interest expense, net	0.2		—		0.3		0.5
Net gain reclassified from accumulated other comprehensive loss into income, net of tax, effective portion to net foreign currency transaction gain (loss)	—		0.1		—		3.6
Derivatives designated as fair value hedges:
Net (loss) gain recognized in other comprehensive income (loss), net of tax(a)	(0.7)		4.7		—		4.7
Net gain reclassified from accumulated other comprehensive loss into income, net of tax, effective portion to interest expense, net	0.3		0.3		0.6		0.3
Net gain reclassified from accumulated other comprehensive loss into income, net of tax, effective portion to net foreign currency transaction gain (loss)	—		3.3		—		3.3
Derivatives designated as net investment hedges:
Net (loss) gain recognized in other comprehensive income (loss), net of tax(a)	(1.0)		—		(1.1)		—
Net gain reclassified from accumulated other comprehensive loss into income, net of tax, effective portion to interest expense, net	0.3		0.2		0.5		0.2
Derivatives not designated as hedging instruments:
Net gain recognized in income(b)	$	0.1	$	4.2	$	0.9	$	2.6

(a)Net change in the fair value of the effective portion classified in other comprehensive income (loss).

(b)Classified in net foreign currency transaction gain (loss).

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Subject to Fair Value Measurements

Our population of assets and liabilities subject to fair value measurements at June 30, 2023 was as follows:

	Fair Value		Level 1		Level 2		Level 3
Assets:
Foreign currency forward exchange contracts	$	0.5	$	—	$	0.5	$	—
Cross-currency swaps	2.9		—		2.9		—
Interest rate swaps	1.4		—		1.4		—
Total assets	4.8		—		4.8		—
Liabilities:
Foreign currency forward exchange contracts	0.5		—		0.5		—
Interest rate swaps	0.9		—		0.9		—
Total liabilities	$	1.4	$	—	$	1.4	$	—

Our population of assets and liabilities subject to fair value measurements at December 31, 2022 was as follows:

	Fair Value		Level 1		Level 2		Level 3
Assets:
Foreign currency forward exchange contracts	$	0.1	$	—	$	0.1	$	—
Cross-currency swaps	3.9		—		3.9		—
Interest rate swaps	0.8		—		0.8		—
Total assets	4.8		—		4.8		—
Liabilities:
Foreign currency forward exchange contracts	0.3		—		0.3		—
Interest rate swaps	1.8		—		1.8		—
Total liabilities	$	2.1	$	—	$	2.1	$	—

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Shareholders' Equity (Tables)

6 Months Ended

Jun. 30, 2023

Stockholders' Equity Note [Abstract]

Schedule of Accumulated Other Comprehensive Loss, Net of Tax

The changes in components of accumulated other comprehensive loss, net of tax, are as follows:

	Six Months Ended June 30, 2023
	Foreign Currency Translation Adjustments		Pension and Post- Retirement Medical Benefits		Derivative Financial Instruments		Total
Beginning balance	$	(53.9)	$	2.7	$	1.0	$	(50.2)
Other comprehensive income before reclassifications	5.9		—		1.4		7.3
Amounts reclassified from accumulated other comprehensive loss	(0.5)		—		(0.9)		(1.4)
Net current period other comprehensive income	5.4		—		0.5		5.9
Ending balance	$	(48.5)	$	2.7	$	1.5	$	(44.3)

	Six Months Ended June 30, 2022
	Foreign Currency Translation Adjustments		Pension and Post- Retirement Medical Benefits		Derivative Financial Instruments		Total
Beginning balance	$	(36.0)	$	(2.1)	$	0.2	$	(37.9)
Other comprehensive (loss) income before reclassifications	(20.7)		—		8.5		(12.2)
Amounts reclassified from accumulated other comprehensive loss	—		—		(7.9)		(7.9)
Net current period other comprehensive (loss) income	(20.7)		—		0.6		(20.1)
Ending balance	$	(56.7)	$	(2.1)	$	0.8	$	(58.0)

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Schedule of Computations of Basic and Diluted Earnings per Share

The computations of basic and diluted earnings per share were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Numerator:
Net income	$	31.3	$	16.6	$	55.6	$	26.9
Denominator:
Basic - weighted average shares outstanding	18,436,367		18,507,073		18,442,862		18,485,367
Effect of dilutive securities:	277,088		176,725		248,874		250,546
Diluted - weighted average shares outstanding	18,713,455		18,683,798		18,691,736		18,735,913
Basic earnings per share	$	1.70	$	0.90	$	3.02	$	1.46
Diluted earnings per share	$	1.68	$	0.89	$	2.98	$	1.44

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Revenue - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Disaggregation of Revenue [Line Items]
Net sales	$ 321.7	$ 280.2	$ 627.5	$ 538.3
Sales direct to consumer
Disaggregation of Revenue [Line Items]
Net sales	218.7	179.7	423.8	343.5
Sales to distributors
Disaggregation of Revenue [Line Items]
Net sales	103.0	100.5	203.7	194.8
Equipment
Disaggregation of Revenue [Line Items]
Net sales	203.2	172.1	389.6	330.2
Parts and consumables
Disaggregation of Revenue [Line Items]
Net sales	71.0	66.1	144.4	126.7
Service and other
Disaggregation of Revenue [Line Items]
Net sales	47.5	42.0	93.5	81.4
Americas
Disaggregation of Revenue [Line Items]
Net sales	216.6	178.4	421.0	338.7
Europe, Middle East and Africa
Disaggregation of Revenue [Line Items]
Net sales	80.0	77.3	162.1	156.0
Asia Pacific
Disaggregation of Revenue [Line Items]
Net sales	$ 25.1	$ 24.5	$ 44.4	$ 43.6

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Revenue - Narrative (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Other current liabilities | Maintenance
Disaggregation of Revenue [Line Items]
Deferred revenue other current liabilities	$ 6.7	$ 6.6
Other liabilities | Maintenance
Disaggregation of Revenue [Line Items]
Deferred revenue other liabilities	$ 2.2	$ 2.7
Short-Term Contract with Customer
Disaggregation of Revenue [Line Items]
Standard prepaid maintenance contract time period (months)	12 months
Long-Term Contract with Customer
Disaggregation of Revenue [Line Items]
Standard prepaid maintenance contract time period (months)	60 months

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Revenue - Schedule of Change in Sales Incentive Accrual Balance and Deferred Revenue Balance (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Sales Incentives
Movement in Deferred Sales Inducements [Roll Forward]
Beginning balance	$ 20.0	$ 19.9
Additions to sales incentive accrual	14.0	10.3
Contract payments	(15.5)	(16.4)
Foreign currency fluctuations	0.1	(0.5)
Ending balance	18.6	13.3
Movement in Deferred Revenue [Roll Forward]
Foreign currency fluctuations	0.1	(0.5)
Maintenance
Movement in Deferred Sales Inducements [Roll Forward]
Foreign currency fluctuations	0.1	(0.3)
Movement in Deferred Revenue [Roll Forward]
Beginning balance	9.3	11.2
Increase in deferred revenue representing our obligation to satisfy future performance obligations	10.3	15.6
Decrease in deferred revenue for amounts recognized in net sales for satisfied performance obligations	(10.8)	(14.8)
Foreign currency fluctuations	0.1	(0.3)
Ending balance	$ 8.9	$ 11.7

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Revenue - Schedule of Remaining Performance Obligation (Details) $ in Millions	Jun. 30, 2023 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total remaining performance obligation	$ 8.9
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total remaining performance obligation	5.4
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total remaining performance obligation	1.8
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total remaining performance obligation	1.0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total remaining performance obligation	0.4
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total remaining performance obligation	0.2
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total remaining performance obligation	$ 0.1

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Revenue - Remaining Performance Obligation (Details)	Jun. 30, 2023
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01
Disaggregation of Revenue [Line Items]
Total remaining performance obligation	6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Disaggregation of Revenue [Line Items]
Total remaining performance obligation	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Disaggregation of Revenue [Line Items]
Total remaining performance obligation	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01
Disaggregation of Revenue [Line Items]
Total remaining performance obligation	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01
Disaggregation of Revenue [Line Items]
Total remaining performance obligation	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01
Disaggregation of Revenue [Line Items]
Total remaining performance obligation

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Management Actions - Schedule of Pre-tax Severance Related Charges (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Restructuring and Related Activities [Abstract]
Severance-related costs	$ 1.2	$ 0.1	$ 1.2	$ 0.3
Other costs	0.0	0.3	0.0	0.3
Total pre-tax restructuring costs	$ 1.2	$ 0.4	$ 1.2	$ 0.6

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Management Actions - Schedule of Reconciliation of Liability Balance of Severance and Related Costs (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Restructuring Reserve [Roll Forward]
Beginning balance	$ 1.7	$ 4.9
New charges	1.1	0.9
Cash payments	(1.4)	(1.9)
Foreign currency fluctuations	0.0	(0.5)
Adjustments to accrual	0.1	(0.6)
Ending balance	$ 1.5	$ 2.8

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Inventories - Schedule of Inventories (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Inventory [Line Items]
Excess of FIFO over LIFO cost	$ (46.6)	$ (49.7)
Total LIFO inventories	72.9	81.7
Total FIFO inventories	125.5	124.9
Total inventories	198.4	206.6
Inventories carried at LIFO:
Inventory [Line Items]
Finished goods	76.5	85.0
Raw materials and work-in-process	43.0	46.4
Inventories carried at FIFO:
Inventory [Line Items]
Finished goods	81.3	68.9
Raw materials and work-in-process	$ 44.2	$ 56.0

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Goodwill and Intangible Assets - Schedule of Changes in Carrying Amount of Goodwill (Details) $ in Millions	6 Months Ended
	Jun. 30, 2023 USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 218.8
Beginning balance, accumulated impairment losses	(36.8)
Beginning balance, net	182.0
Foreign currency fluctuations	5.8
Foreign currency fluctuations, accumulated impairment losses	(2.2)
Foreign currency fluctuations, net	3.6
Ending balance	224.6
Ending balance, accumulated impairment losses	(39.0)
Ending balance, net	$ 185.6

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Goodwill and Intangible Assets - Schedule of Acquired Intangible Assets (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Original cost	$ 194.0	$ 191.1
Accumulated amortization	(124.4)	(114.7)
Carrying value	69.6	76.4
Customer Lists
Finite-Lived Intangible Assets [Line Items]
Original cost	148.8	146.6
Accumulated amortization	(94.5)	(87.5)
Carrying value	$ 54.3	$ 59.1
Weighted average original life (in years)	15 years	15 years
Trade Names
Finite-Lived Intangible Assets [Line Items]
Original cost	$ 29.0	$ 28.6
Accumulated amortization	(17.6)	(15.9)
Carrying value	$ 11.4	$ 12.7
Weighted average original life (in years)	11 years	11 years
Technology
Finite-Lived Intangible Assets [Line Items]
Original cost	$ 16.2	$ 15.9
Accumulated amortization	(12.3)	(11.3)
Carrying value	$ 3.9	$ 4.6
Weighted average original life (in years)	11 years	11 years

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Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 3.6	$ 3.9	$ 7.5	$ 8.4

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Goodwill and Intangible Assets - Schedule of Estimated Aggregate Amortization Expense (Details) $ in Millions	Jun. 30, 2023 USD ($)
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract]
Remaining 2023	$ 7.1
2024	13.3
2025	11.9
2026	10.6
2027	7.3
Thereafter	19.4
Total	$ 69.6

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Debt - Narrative (Details)			6 Months Ended
	Nov. 10, 2022	Apr. 05, 2021 USD ($)	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Debt Instrument [Line Items]
Cross-currency swap instruments, net			5.20%
The 2021 Credit Agreement
Debt Instrument [Line Items]
Collateral, percentage of stock of first tier foreign subsidiaries		65.00%
Dividend payments		$ 7,500,000
EBITDA ratio, maximum		3.50
Permitted acquisitions		$ 50,000,000
Maximum EBITDA to interest expense ratio		300.00%
Leverage ratio minimum		2.50
Dividends payout		$ 60,000,000
Letters of credit outstanding			$ 3,100,000
Commitment fees on unused lines of credit			400,000
The 2021 Credit Agreement | Secured Overnight Financing Rate
Debt Instrument [Line Items]
Basis spread on variable rate	0.10%
The 2021 Credit Agreement | SOFR on Eurocurrency Liabilities
Debt Instrument [Line Items]
Variable rate floor	0.00%
The 2021 Credit Agreement | Fed Funds Effective Rate Overnight Index Swap Rate
Debt Instrument [Line Items]
Basis spread on variable rate	0.50%
The 2021 Credit Agreement | Adjusted Secured Overnight Financing Rate
Debt Instrument [Line Items]
Variable rate floor	1.00%
The 2021 Credit Agreement | Minimum
Debt Instrument [Line Items]
Other restricted payments		60,000,000
The 2021 Credit Agreement | Minimum | SOFR on Eurocurrency Liabilities
Debt Instrument [Line Items]
Basis spread on variable rate	1.10%
The 2021 Credit Agreement | Minimum | Adjusted Secured Overnight Financing Rate
Debt Instrument [Line Items]
Basis spread on variable rate	0.10%
The 2021 Credit Agreement | Maximum | SOFR on Eurocurrency Liabilities
Debt Instrument [Line Items]
Basis spread on variable rate	1.70%
The 2021 Credit Agreement | Maximum | Adjusted Secured Overnight Financing Rate
Debt Instrument [Line Items]
Basis spread on variable rate	0.70%
The 2021 Credit Agreement | Revolving credit facility borrowings
Debt Instrument [Line Items]
Revolving credit facility		450,000,000
Credit facility		275,000,000
Outstanding borrowings			185,000,000.0	$ 205,000,000.0
Unused borrowing capacity			261,900,000
The 2021 Credit Agreement | Term loan facility borrowings
Debt Instrument [Line Items]
Outstanding principal amount		$ 100,000,000
Outstanding borrowings			$ 92,500,000	$ 95,000,000.0
Debt Including Related Cross-currency Swap Instrument
Debt Instrument [Line Items]
Weighted average cost of debt			6.30%

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Debt - Schedule of Debt Outstanding (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Finance lease liabilities	$ 0.3	$ 0.1
Total debt	278.0	300.3
Less: current portion of long-term debt	(5.3)	(5.2)
Long-term debt	272.7	295.1
Secured borrowings
Debt Instrument [Line Items]
Outstanding borrowings	0.2	0.2
The 2021 Credit Agreement
Debt Instrument [Line Items]
Repayment of outstanding credit facility borrowings	5.0
Finance lease liabilities current	0.3
The 2021 Credit Agreement | Term loan facility borrowings
Debt Instrument [Line Items]
Outstanding borrowings	92.5	95.0
The 2021 Credit Agreement | Revolving credit facility borrowings
Debt Instrument [Line Items]
Outstanding borrowings	$ 185.0	$ 205.0

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Warranty - Narrative (Details)	6 Months Ended
	Jun. 30, 2023
Minimum
Guarantor Obligations [Line Items]
Machine warranty, period (Year)	1 year
Maximum
Guarantor Obligations [Line Items]
Machine warranty, period (Year)	4 years

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Warranty - Schedule of Changes in Warranty Reserves (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Movement in Standard Product Warranty Accrual [Roll Forward]
Beginning balance	$ 10.9	$ 10.4
Additions charged to expense	5.5	4.4
Foreign currency fluctuations	0.1	(0.1)
Claims paid	(5.4)	(4.1)
Ending balance	$ 11.1	$ 10.6

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Derivatives - Narrative (Details) € in Millions, $ in Millions	6 Months Ended
	Jun. 30, 2023 USD ($)	Jun. 30, 2023 EUR (€)	Jun. 30, 2023 EUR (€)	Dec. 31, 2022 USD ($)	Dec. 31, 2022 EUR (€)	Dec. 01, 2022 USD ($)
Derivative Instruments, Gain (Loss) [Line Items]
Cash flow hedge gain reclassified | $	$ 2.7
Foreign currency forward contracts | Derivatives not designated as hedging instruments:
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, notional amount | $	$ 106.7			$ 83.7
Interest rate swaps | Designated as Hedging Instrument | Derivatives designated as cash flow hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, notional amount | $						$ 120.0
Derivative, fixed interest rate						4.076%
Cross-currency swaps | Designated as Hedging Instrument | Derivatives designated as fair value hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, notional amount			€ 83.6		€ 84.8
Debt instrument, periodic payment, interest		€ 8.6
Debt instrument, periodic payment, principal		€ 75.0
Cross-currency swaps | Designated as Hedging Instrument | Derivatives designated as net investment hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, notional amount			€ 75.0		€ 75.0

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Derivatives - Schedule of Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Designated as Hedging Instrument | Interest rate swaps | Derivatives designated as cash flow hedges:
Derivatives, Fair Value [Line Items]
Derivative Assets	$ 1.4	$ 0.8
Derivative Liabilities	0.0	0.0
Derivative other asset, before offset	0.0	0.0
Derivative other liability, asset offset	0.9	1.8
Designated as Hedging Instrument | Cross-currency swaps | Derivatives designated as fair value hedges:
Derivatives, Fair Value [Line Items]
Derivative Assets	1.5	1.4
Derivative Liabilities	0.0	0.0
Derivative other asset, before offset	0.0	0.8
Derivative other liability, asset offset	1.5	0.0
Designated as Hedging Instrument | Cross-currency swaps | Derivatives designated as net investment hedges:
Derivatives, Fair Value [Line Items]
Derivative Assets	1.4	1.2
Derivative Liabilities	0.0	0.0
Derivative other asset, before offset	0.0	0.5
Derivative other liability, asset offset	1.7	0.0
Derivatives not designated as hedging instruments: | Foreign currency forward contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	0.5	0.1
Derivative Liabilities	$ 0.5	$ 0.3

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Derivatives - Schedule of Effect of Derivative Instruments on Consolidated Statements of Earnings (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Foreign Currency Fair Value Hedge Derivative [Line Items]
Interest expense, net	$ (4.0)	$ (1.2)	$ (7.7)	$ (1.5)
Net sales	321.7	280.2	627.5	538.3
Net (loss) gain recognized in other comprehensive income (loss), net of tax	1.1	0.8	0.5	0.6
Net gain reclassified from accumulated other comprehensive loss into income, net of tax, effective portion to net foreign currency transaction gain (loss)	1.0	(1.0)	0.9	(0.4)
Designated as Hedging Instrument | Derivatives designated as cash flow hedges:
Foreign Currency Fair Value Hedge Derivative [Line Items]
Interest expense, net	(4.0)	(1.2)	(7.7)	(1.5)
Net sales			627.5	538.3
Gain (Loss) on Hedging			0.0	0.0
Net gain reclassified from accumulated other comprehensive loss into income, net of tax, effective portion to net foreign currency transaction gain (loss)	1.0	(1.0)	0.9	(0.4)
Designated as Hedging Instrument | Derivatives designated as cash flow hedges: | Interest expense, net
Foreign Currency Fair Value Hedge Derivative [Line Items]
Gain (Loss) on Hedging	0.2	0.0	0.3	0.7
Designated as Hedging Instrument | Derivatives designated as cash flow hedges: | Net foreign currency transaction gain (loss)
Foreign Currency Fair Value Hedge Derivative [Line Items]
Gain (Loss) on Hedging	0.0	0.2	0.0	4.7
Designated as Hedging Instrument | Derivatives designated as fair value hedges:
Foreign Currency Fair Value Hedge Derivative [Line Items]
Interest expense, net	(4.0)	(1.2)	(7.7)	(1.5)
Net gain reclassified from accumulated other comprehensive loss into income, net of tax, effective portion to net foreign currency transaction gain (loss)	1.0	(1.0)	0.9	(0.4)
Designated as Hedging Instrument | Derivatives designated as fair value hedges: | Interest expense, net
Foreign Currency Fair Value Hedge Derivative [Line Items]
Gain (Loss) on Hedging	0.2	0.4	1.4	0.4
Designated as Hedging Instrument | Derivatives designated as fair value hedges: | Net foreign currency transaction gain (loss)
Foreign Currency Fair Value Hedge Derivative [Line Items]
Gain (Loss) on Hedging	(0.4)	4.3	0.8	4.3
Designated as Hedging Instrument | Derivatives designated as net investment hedges:
Foreign Currency Fair Value Hedge Derivative [Line Items]
Interest expense, net	(4.0)	(1.2)	(7.7)	(1.5)
Designated as Hedging Instrument | Derivatives designated as net investment hedges: | Interest expense, net
Foreign Currency Fair Value Hedge Derivative [Line Items]
Gain (Loss) on Hedging	0.3	0.3	1.2	0.3
Designated as Hedging Instrument | Foreign Exchange Option | Derivatives designated as cash flow hedges:
Foreign Currency Fair Value Hedge Derivative [Line Items]
Net (loss) gain recognized in other comprehensive income (loss), net of tax	2.3	0.0	1.4	3.8
Net gain reclassified from accumulated other comprehensive loss into income, net of tax, effective portion to interest expense, net	0.2	0.0	0.3	0.5
Net gain reclassified from accumulated other comprehensive loss into income, net of tax, effective portion to net foreign currency transaction gain (loss)	0.0	0.1	0.0	3.6
Designated as Hedging Instrument | Foreign Exchange Option | Derivatives designated as fair value hedges:
Foreign Currency Fair Value Hedge Derivative [Line Items]
Net (loss) gain recognized in other comprehensive income (loss), net of tax	(0.7)	4.7	0.0	4.7
Net gain reclassified from accumulated other comprehensive loss into income, net of tax, effective portion to interest expense, net	0.3	0.3	0.6	0.3
Designated as Hedging Instrument | Foreign Exchange Option | Derivatives designated as fair value hedges: | Net foreign currency transaction gain (loss)
Foreign Currency Fair Value Hedge Derivative [Line Items]
Net gain reclassified from accumulated other comprehensive loss into income, net of tax, effective portion to net foreign currency transaction gain (loss)	0.0	3.3	0.0	3.3
Designated as Hedging Instrument | Foreign Exchange Option | Derivatives designated as net investment hedges:
Foreign Currency Fair Value Hedge Derivative [Line Items]
Net (loss) gain recognized in other comprehensive income (loss), net of tax	(1.0)	0.0	(1.1)	0.0
Net gain reclassified from accumulated other comprehensive loss into income, net of tax, effective portion to interest expense, net	0.3	0.2	0.5	0.2
Derivatives not designated as hedging instruments: | Foreign Exchange Option
Foreign Currency Fair Value Hedge Derivative [Line Items]
Net gain recognized in income	$ 0.1	$ 4.2	$ 0.9	$ 2.6

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Fair Value Measurements - Fair Value Measurements of Assets and Liabilities (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets	$ 4.8	$ 4.8
Total liabilities	1.4	2.1
Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets	0.0	0.0
Total liabilities	0.0	0.0
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets	4.8	4.8
Total liabilities	1.4	2.1
Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets	0.0	0.0
Total liabilities	0.0	0.0
Foreign currency forward contracts
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign currency forward exchange contracts	0.5	0.1
Foreign currency forward exchange contracts	0.5	0.3
Foreign currency forward contracts | Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign currency forward exchange contracts	0.0	0.0
Foreign currency forward exchange contracts	0.0	0.0
Foreign currency forward contracts | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign currency forward exchange contracts	0.5	0.1
Foreign currency forward exchange contracts	0.5	0.3
Foreign currency forward contracts | Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign currency forward exchange contracts	0.0	0.0
Foreign currency forward exchange contracts	0.0	0.0
Cross-currency swaps
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative asset	2.9	3.9
Cross-currency swaps | Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative asset	0.0	0.0
Cross-currency swaps | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative asset	2.9	3.9
Cross-currency swaps | Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative asset	0.0	0.0
Interest rate swaps
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative asset	1.4	0.8
Interest rate swaps	0.9	1.8
Interest rate swaps | Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative asset	0.0	0.0
Interest rate swaps	0.0	0.0
Interest rate swaps | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative asset	1.4	0.8
Interest rate swaps	0.9	1.8
Interest rate swaps | Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative asset	0.0	0.0
Interest rate swaps	$ 0.0	$ 0.0

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Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Fair value of total debt	$ 277.1	$ 301.8
Carrying value of total debt	$ 278.0	$ 300.3

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Shareholders' Equity - Accumulated Other Comprehensive Loss, Net of Tax (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	$ 493.2	$ 437.3	$ 472.1	$ 435.1
Other comprehensive income before reclassifications			7.3	(12.2)
Amounts reclassified from accumulated other comprehensive loss			(1.4)	(7.9)
Total other comprehensive income (loss), net of tax	1.2	(16.1)	5.9	(20.1)
Ending balance	521.9	434.0	521.9	434.0
Total
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(45.5)	(41.9)	(50.2)	(37.9)
Ending balance	(44.3)	(58.0)	(44.3)	(58.0)
Foreign Currency Translation Adjustments
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance			(53.9)	(36.0)
Other comprehensive income before reclassifications			5.9	(20.7)
Amounts reclassified from accumulated other comprehensive loss			(0.5)	0.0
Total other comprehensive income (loss), net of tax			5.4	(20.7)
Ending balance	(48.5)	(56.7)	(48.5)	(56.7)
Pension and Post- Retirement Medical Benefits
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance			2.7	(2.1)
Other comprehensive income before reclassifications			0.0	0.0
Amounts reclassified from accumulated other comprehensive loss			0.0	0.0
Total other comprehensive income (loss), net of tax			0.0	0.0
Ending balance	2.7	(2.1)	2.7	(2.1)
Derivative Financial Instruments
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance			1.0	0.2
Other comprehensive income before reclassifications			1.4	8.5
Amounts reclassified from accumulated other comprehensive loss			(0.9)	(7.9)
Total other comprehensive income (loss), net of tax			0.5	0.6
Ending balance	$ 1.5	$ 0.8	$ 1.5	$ 0.8

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Income Taxes (Details) $ in Millions	6 Months Ended
	Jun. 30, 2023 USD ($)
Income Tax Contingency [Line Items]
Unrecognized tax benefits, ending balance	$ 3.6
Unrecognized tax benefits, income tax penalties and interest accrued, total	0.4
Unrecognized tax benefits that would impact effective tax rate	$ 3.3
Minimum
Income Tax Contingency [Line Items]
Open tax year, term (year)	3 years
Maximum
Income Tax Contingency [Line Items]
Open tax year, term (year)	5 years

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Share-Based Compensation (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]
Share-based payment arrangement, expense	$ 2.7	$ 0.9	$ 3.9	$ 2.7
Share-based payment arrangement, tax (deficiency) benefit			$ (0.2)	$ 0.3

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Earnings Per Share - Computations of Basic and Diluted Earnings (Loss) Attributable to Tennant Company Per Share (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Numerator:
Net income	$ 31.3	$ 16.6	$ 55.6	$ 26.9
Denominator:
Basic - weighted average shares outstanding (in shares)	18,436,367	18,507,073	18,442,862	18,485,367
Effect of dilutive securities:	277,088	176,725	248,874	250,546
Diluted - weighted average shares outstanding (in shares)	18,713,455	18,683,798	18,691,736	18,735,913
Basic earnings per share (in dollars per share)	$ 1.70	$ 0.90	$ 3.02	$ 1.46
Diluted earnings per share (in dollars per share)	$ 1.68	$ 0.89	$ 2.98	$ 1.44

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Earnings Per Share - Narrative (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Earnings Per Share [Abstract]
Antidilutive securities (in shares)	261,376	698,378	449,763	402,696