What changed in this filing

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Item 1. Business

2021-03-01 compared with 2020-02-28 · 146 added, 72 removed, 133 unchanged (62% of the section changed)

AGCO Corporation (“AGCO,” “we,” “us” or the “Company”) was incorporated in Delaware in 1991.

Our executive offices are located at 4205 River Green Parkway, Duluth, Georgia 30096, and our telephone number is (770) 813-9200.

Unless otherwise indicated, all references in this Form 10-K to the Company include our subsidiaries.

AGCO Corporation was incorporated in Delaware in 1991.

Unless otherwise indicated, all references in this Form 10-K to “AGCO,” “we,” “us” or the “Company” include AGCO Corporation and its subsidiaries.

We are a leading manufacturer and distributor of agricultural equipment and related replacement parts throughout the world.

We sell a full range of agricultural equipment, including tractors, combines, self-propelled sprayers, hay tools, forage equipment, seeding and tillage equipment, implements, and grain storage and protein production systems.

Our products are widely recognized in the agricultural equipment industry and are marketed under a number of well-known brands, including Challenger ® , Fendt ® , GSI ® , Massey Ferguson ® and Valtra ® .

Our products are widely recognized in the agricultural equipment industry and are marketed under a number of well-known brands, including:

Challenger ® , Fendt ® , GSI ® , Massey Ferguson ® and Valtra ® , supported by our Fuse ® precision agriculture solutions.

We distribute most of our products through approximately 3,250 independent dealers and distributors in approximately 140 countries.

We also provide retail and wholesale financing through our finance joint ventures with Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., which we refer to as “Rabobank.”

The following table sets forth a description of the Company’s products and their percentage of net sales:

The following table sets forth a description of the Company’s more significant products and their percentage of net sales:

Percentage of Net Sales

Product Description

High horsepower tractors (100 to 650 horsepower);

Product Product Description 2020 2019 (1)

Tractors • High horsepower tractors (140 to 650 horsepower);

typically used on large acreage farms, primarily for row crop production, soil cultivation, planting, land leveling, seeding and commercial hay operations 57 % 57 % 57 %

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typically used on small farms and specialty agricultural industries, as well as for landscaping, equestrian and residential uses

Replacement Parts

Replacement parts for all of the products we sell, including products no longer in production.

Replacement Parts • Replacement parts for all of the products we sell, including products no longer in production.

Most of our products can be economically maintained with parts and service for a period of ten to 20 years.

Our parts inventories are maintained and distributed through a network of master and regional warehouses throughout North America, South America, Europe, Africa, China and Australia in order to provide timely response to customer demand for replacement parts 16 % 15 % 14 %

Grain Storage and Protein Production Systems

Grain storage bins and related drying and handling equipment systems;

Grain Storage and Protein Production Systems • Grain storage bins and related drying and handling equipment systems;

seed-processing systems;

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and egg production systems and broiler production equipment 10 % 11 % 12 %

Hay Tools and Forage Equipment, Implements & Other Equipment

Round and rectangular balers, loader wagons, self-propelled windrowers, forage harvesters, disc mowers, spreaders, rakes, tedders, and mower conditioners;

Hay Tools and Forage Equipment, Implements & Other Equipment • Round and rectangular balers, loader wagons, self-propelled windrowers, forage harvesters, disc mowers, spreaders, rakes, tedders, and mower conditioners;

used for the harvesting and packaging of vegetative feeds used in the cattle, dairy, horse and renewable fuel industries 11 % 10 % 10 %

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used for a variety of tasks, including lifting and transporting hay crops

Combines, sold with a variety of threshing technologies and complemented by a variety of crop-harvesting heads;

Combines • Combines, sold with a variety of threshing technologies and complemented by a variety of crop-harvesting heads;

typically used in harvesting grain crops such as corn, wheat, soybeans and rice 3 % 3 % 3 %

Application Equipment

Self-propelled, three- and four-wheeled vehicles and related equipment;

Application Equipment • Self-propelled, three- and four-wheeled vehicles and related equipment;

for use in the application of liquid and dry fertilizers and crop protection chemicals both prior to planting crops (“pre-emergence”) and after crops emerge from the ground (“post-emergence”) 3 % 3 % 3 %

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(1) The summation of these individual percentages does not total due to rounding.

Smart Farming Technologies

Precision Agriculture

We offer smart solutions to the farmer to optimize farming performance, while improving ease of use.

Our strategy is based upon an open approach to data management leveraging existing solutions offered by partnering with industry leaders while integrating AGCO products and innovation.

These smart farming technologies are based on connectivity, automation and digitalization and include satellite-based steering, field data collection, product self-adjustment, yield-mapping and telemetry-based fleet management systems.

Our Fuse ® and other smart-farming technologies support our products, brands and the aftermarket with a comprehensive and customizable suite of solutions, enabling farmers to make individual, data based decisions in order to reduce costs and maximize efficiency, yields and profitability of their farms.

Our strategy is based upon an open approach to data management leveraging existing solutions offered by partnering with industry leaders and while integrating our products and innovation.

We provide essential added value to dealers and service providers that helps farmers improve uptime, machine and yield optimization, mixed fleet optimization and decision support, with critical data privacy choices and convenient mobile tools that offer access to data and information.

These products ultimately result in reduced waste and increased profitability for the farmer.

Our precision agriculture solutions are based on connectivity, automation and digitalization and include satellite-based steering, field data collection, product self-adjustment, yield-mapping and telemetry-based fleet management systems.

Our Fuse ® and other precision agriculture solutions support our products, brands and the aftermarket with a comprehensive and customizable suite of solutions, enabling farmers to make individual, data-based decisions in order to reduce costs and maximize efficiency, yields and profitability.

A significant number of these technologies are developed by third parties and are integrated into our products.

We believe that these products and related devices are highly valued by professional farmers globally and are integral to the current and future growth of our equipment sales and revenues.

Market Conditions

Demand for agricultural equipment is cyclical, influenced by, among other things, farm income, farm land values, weather conditions, the demand for agricultural commodities, commodity and protein prices and general economic conditions, as well as government policies and subsidies.

During 2020, the COVID-19 pandemic had minimal impact on global crop production.

Most farm operations, which generally have been deemed essential, operated at normal levels.

However, the consumption of grain for food, fuel and livestock feed was negatively impacted by the economic constraints caused by the pandemic in the first half of 2020.

During the second half of 2020, grain consumption started to recover, consistent with improving economic activities and increased grain exports to China, thus reducing forecasts for ending grain inventories, and raising soft commodity prices.

Consequently, global industry demand for farm equipment was mixed during 2020 but improved in the second half of the year across major markets.

Farm income, which is a function of commodity and protein prices, crop yields, and government support, will continue to be a key factor in the level of industry demand.

2020 Compared to 2019 Financial Highlights

Net income attributable to AGCO Corporation and subsidiaries for 2020 was $427.1 million, or $5.65 per diluted share, compared to $125.2 million, or $1.63 per diluted share for 2019.

Net sales for 2020 were approximately $9,149.7 million, or 1.2% higher than 2019, primarily due to increased sales volumes in our South American region, partially offset by the negative impact of currency translation.

Net sales were impacted by reduced production volumes caused by component availability and other impacts of the COVID-19 pandemic in the first half of 2020, but recovered in the second half of the year resulting from more normalized production and improved industry demand.

Income from operations was $599.7 million in 2020 compared to $348.1 million in 2019.

The increase in income from operations during 2020 was primarily the result of improved margins which benefited from positive pricing impacts, a favorable sales mix and cost control initiatives as compared to prior year.

In addition, our 2019 income from operations included approximately $176.6 million of non-cash goodwill and other intangible asset impairment charges recorded during the fourth quarter of 2019 related to our grain storage and protein production systems operations in our Europe/Middle East region.

See “Financial Highlights” under Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for additional information.

The agricultural industry is highly competitive.

We compete with several large national and international full-line suppliers, as well as numerous short-line and specialty manufacturers with differing manufacturing and marketing methods.

Our two principal competitors on a worldwide basis are Deere & Company and CNH Industrial N.V.

We have regional competitors around the world that have significant market share in a single country or a group of countries.

We believe several key factors influence a buyer’s choice of farm equipment, including the strength and quality of a company’s dealers, the quality and pricing of products, dealer or brand loyalty, product availability, terms of financing and customer service.

See “Marketing and Distribution” for additional information.

Marketing and Distribution

Dealers and Distributors

We distribute products primarily through a network of independent dealers and distributors.

Our dealers are responsible for retail sales of equipment to end users and after-sales service and support.

Our distributors may sell our products through networks of dealers supported by the distributors, and our distributors also may directly market our products and provide customer service support.

Our distributors may sell our product through networks of dealers supported by the distributors, and our distributors also may directly market our products and provide customer service support.

Our sales are not dependent on any specific dealer, distributor or group of dealers.

In some countries, we utilize associates and licensees to provide a distribution channel for our products and a source of low-cost production for certain Massey Ferguson and Valtra products.

Associates are entities in which we have an ownership interest, most notably in India.

Licensees are entities in which we have no ownership interest.

An associate or licensee generally has the exclusive right to produce and sell Massey Ferguson or Valtra equipment in its licensed territory under these tradenames, but may not sell these products outside the licensed territory.

We generally license certain technology to these associates and licensees, and we may sell them certain components used in local manufacturing operations.

Independent Dealers and Distributors

Percent of Net Sales

In some countries, we utilize associates and licensees to provide a distribution channel for our products and a source of low-cost production for certain products.

Independent Dealers and Distributors Percent of Net Sales (1)

Geographical Region 2020 2020 2019 2018

Europe 785 57 % 58 % 57 %

North America 1,820 24 % 24 % 23 %

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400 10 % 9 % 9 %

(1) The summation of these individual percentages does not total due to rounding.

____________________________________

(1) The summation of these individual percentages may not total due to rounding.

(2) Consists of approximately 60 countries in Africa, the Middle East, Australia and Asia.

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We design our sales programs, including retail financing incentives, and our policies for maintaining parts and service availability with extensive product warranties to enhance our dealers’ competitive position.

Manufacturing and Suppliers

Manufacturing and Assembly

We manufacture and assemble our products in 43 locations worldwide, including four locations where we operate joint ventures.

Our locations are intended to optimize capacity, technology or local costs.

Our locations are intended to optimize capacity, technology and local costs.

Furthermore, we continue to balance our manufacturing resources with externally-sourced machinery, components and/or replacement parts to enable us to better control costs, inventory levels and our supply of components.

We believe that our manufacturing facilities are sufficient to meet our needs for the foreseeable future.

Refer to Item 2, “Properties,” where a listing of our principal manufacturing locations is presented.

Refer to Item 2, “Properties,” for a listing of our principal manufacturing locations.

Our AGCO Power engines division produces diesel engines, gears and generating sets.

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AGCO Power specializes in the manufacturing of off-road engines in the 75 to 600 horsepower range.

Third-Party Suppliers

Components and Third-Party Suppliers

We externally source some of our machinery, components and replacement parts from third-party suppliers.

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In addition to the purchase of machinery, third-party suppliers supply us with significant components used in our manufacturing operations.

We select third-party suppliers that we believe are low cost, high quality and possess the most appropriate technology.

We select third-party suppliers that we believe are low cost and high quality and possess the most appropriate technology.

We also assist in the development of these products or component parts based upon our own design requirements.

Our past experience with outside suppliers generally has been favorable.

Generally, retail sales by dealers to farmers are highly seasonal and largely are a function of the timing of the planting and harvesting seasons.

To the extent possible, we attempt to ship products to our dealers and distributors on a level basis throughout the year to reduce the effect of seasonal retail demands on our manufacturing operations and to minimize our investment in inventory.

Our financing requirements are subject to variations due to seasonal changes in working capital levels, which typically increase in the first half of the year and then decrease in the second half of the year.

The fourth quarter is also typically a period for higher retail sales because of our customers’ year-end tax planning considerations, the increase in the availability of funds from completed harvests and the timing of dealer incentives.

The agricultural industry is highly competitive.

We compete with several large national and international full-line suppliers, as well as numerous short-line and specialty manufacturers with differing manufacturing and marketing methods.

Our two principal competitors on a worldwide basis are Deere & Company and CNH Industrial N.V.

We have regional competitors around the world that have significant market share in a single country or a group of countries.

See “Marketing and Distribution” for additional information.

Intellectual Property

We own and have licenses to the rights under a number of domestic and foreign patents, trademarks, trade names and brand names relating to our products and businesses.

We defend our patent, trademark and trade and brand name rights primarily by monitoring competitors’ machines and industry publications and conducting other investigative work.

We consider our intellectual property rights, including our right to use our trade and brand names, important in the operation of our businesses.

However, we do not believe we are dependent on any single patent or group of patents, although several of our trade and brand names are internationally recognized and are vital to our operations.

We intend to maintain the separate strengths and identities of our core brand names and product lines.

Engineering and Research

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In many cases, we retain a security interest in the equipment sold on extended terms.

In certain international markets, our sales are generally backed by letters of credit or credit insurance.

In certain international markets, our sales often are backed by letters of credit or credit insurance.

Sales of grain storage and protein production systems both in the United States and in other countries generally are payable within 30 days of shipment.

In certain countries, sales of such systems for which the Company is responsible for construction or installation may be contingent upon customer acceptance.

In certain countries, sales of such systems for which we are responsible for construction or installation may be contingent upon customer acceptance.

Payment terms vary by market and product, with fixed payment schedules on all sales.

When sales of installation services occur, fixed payment schedules may include upfront deposits, progress payments and final payment upon customer acceptance.

We have accounts receivable sales agreements that permit transferring, on an ongoing basis, a majority of our wholesale receivables in North America, Europe and Brazil to our AGCO Finance joint ventures in the United States, Canada, Europe and Brazil.

Upon transfer, the wholesale receivables maintain standard payment terms, including required regular principal payments on amounts outstanding and interest charges at market rates.

Qualified dealers may obtain additional financing through our U.S., Canadian, European and Brazilian finance joint ventures at the joint ventures’ discretion.

Qualified dealers may obtain additional

financing through our U.S., Canadian, European and Brazilian finance joint ventures at the joint ventures’ discretion.

In addition, our AGCO Finance joint ventures may provide wholesale financing directly to dealers in Europe, Brazil and Australia.

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In addition, Rabobank is the primary lender with respect to our credit facility and our senior term loan, as are more fully described in “Liquidity and Capital Resources” within Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Our historical relationship with Rabobank has been strong, and we anticipate its continued long-term support of our business.

Intellectual Property

We own and have licenses to the rights under a number of domestic and foreign patents, trademarks, trade names and brand names relating to our products and businesses.

We defend our patent, trademark and trade and brand name rights primarily by monitoring competitors’ machines and industry publications and conducting other investigative work.

We consider our intellectual property rights, including our right to use our trade and brand names, important in the operation of our businesses.

However, we do not believe we are dependent on any single patent, trademark, trade name, brand name or group of patents or trademarks, trade names or brand names.

We intend to maintain the separate strengths and identities of our core brand names and product lines.

Generally, retail sales by dealers to farmers are highly seasonal and largely are a function of the timing of the planting and harvesting seasons.

Environmental Matters and Regulation

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These laws and regulations are constantly changing, and the effects that they may have on us in the future are impossible to accurately predict.

It is our policy to comply with all applicable environmental, health and safety laws and regulations.

We attempt to comply with all applicable environmental, health and safety laws and regulations.

We believe that any expense or liability we may incur in connection with noncompliance with laws or regulations or the cleanup of any of our properties will not have a materially adverse effect on us.

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It is too soon for us to predict with any certainty the ultimate impact of additional regulation, either directionally or quantitatively, on our overall business, results of operations or financial condition.

For additional information regarding our product development plans, see the “Sustainability” section below.

Regulation and Government Policy

Domestic and foreign political developments and government regulations and policies directly affect the agricultural industry and indirectly affect the agricultural equipment business in the United States and abroad.

Domestic and foreign political developments and government regulations and policies directly affect the agricultural industry and both directly and indirectly affect the agricultural equipment business in the United States and abroad.

The application, modification or adoption of laws, regulations or policies could have an adverse effect on our business.

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These interests result in active political involvement in the agricultural industry, which, in turn, can impact our business in a variety of ways.

Corporate Social Responsibility

For AGCO, corporate social responsibility is a core business imperative that underlies our strategy to build a more valuable enterprise through long-term economic, social and environmental sustainability in support of our key stakeholders and AGCO communities.

This aligns with our vision to provide high-tech solutions for farmers feeding the world.

To achieve that vision, we seek opportunities in every aspect of the AGCO agricultural value chain to address many of today’s most significant challenges, including food security, farmer livelihood and resource efficiency.

We see efficiency as key to sustainable agriculture and achieving the United Nations Sustainable Development Goals related to minimizing the environmental impact of farming and ending hunger.

Our products and processes address significant long-term issues, including (1) the reduction of fuel (carbon) usage and related emissions in connection with the engines contained in the equipment that we manufacture, (2) the minimization of other inputs used by farmers, e.g., seeds, fertilizer, pesticide, and water, through smart farming technology and equipment, (3)

improved crop storage and animal welfare, and (4) the reduction in our consumption of natural resources in the production of the equipment that we manufacture.

For example, for U.S.

equipment, our engines now are Tier 4 compliant and, in Europe, they now are Stage V compliant;

in both cases representing meaningful reductions in fuel usage and greenhouse gases in our two largest markets.

In addition, our sprayer equipment is equipped with variable rate technology, nozzle controls and positioning systems that allow farmers to precisely apply nutrients and chemicals which result in overall reduced chemical and fertilizer usage.

Our efforts include the AGCO Future Farm and training center in Zambia, which teaches farmers how to farm more sustainably, with focused efficiency, while preserving soil health and reducing post-harvest loss.

Additionally, our AGCO Agriculture Foundation, initiated by AGCO in 2018, is a private foundation with the vision to prevent and relief hunger.

The foundation initiates impactful programs that support food security, foster sustainable agricultural development and build needed agricultural infrastructure in marginalized farming communities.

We launched the AGCO Agriculture Foundation to focus our philanthropy on building needed agricultural infrastructure to help feed the world sustainably and equitably.

As of December 31, 2019 , we employed approximately 21,000 employees, including approximately 4,650 employees in the United States and Canada.

A majority of our employees at our manufacturing facilities, both domestic and international, are represented by collective bargaining agreements and union contracts with terms that expire on varying dates.

Sustainability

Corporate sustainability is a core business imperative that underlies our strategy to build a more valuable enterprise through long-term economic, social and environmental sustainability in support of our key stakeholders and communities.

This aligns with our purpose to provide farmer-focused solutions to sustainably feed our world.

We see opportunities in every aspect of our agricultural value chain to address many of today’s most significant challenges, including food security, farmer livelihood and resource efficiency.

We currently are prioritizing the following four sustainability imperatives.

Advancing Soil Health and Soil-Carbon Sequestration

Improving soil health using practices such as cover crops, no-till farming and managing soil compaction all contribute positively to mitigate climate change.

Sequestering carbon into agricultural soils and boosting crop yields is a natural positive outcome for both the farmer and the environment.

We are committed to developing solutions to map, measure and implement good soil health practices.

We are also applying our engineering expertise to develop innovative solutions to position agriculture and our farmers to as part of the solution to climate change.

Over the past several years, we have invested in a thriving network of demonstration farms and initiatives to dive into topics that matter most to farmers, and to test and demonstrate the latest technologies that demonstrate core agronomy principles.

We plan to expand these initiatives towards more sustainability trials including crop covering, herbicide reduction by mechanical weed control and variable rate nitrogen fertilization.

We also have new products that feature precision agriculture solutions from Fuse ® and Precision Planting that support soil health and the reduction of the use of chemical inputs.

Our Fuse ® solutions help to deliver connectivity across our entire fleet to enable and accelerate precision agriculture;

specifically, by optimizing nutrient and pest control use efficiency, as well as managing compaction and machine optimization to favorably impact yield and the environment.

Decarbonizing Our Operations and Products

We are committed to reducing CO 2 emissions across our manufacturing sites worldwide to limit our impact to climate change.

Smart manufacturing uses advanced technology to increase productivity while reducing energy waste and cost.

Our initial priorities will focus on using cleaner sources of energy and reducing consumption by improving operational efficiencies.

The goal of our research and development efforts with respect to engines is to be a pioneer for the farmers of today and tomorrow by designing lower emission and more fuel-efficient engines.

We continue to invest substantial resources in research and development activities to create and deploy advanced technologies as well as to significantly enhance existing traditional technologies with continual improvements in vehicle engine and transmission efficiencies.

Our research efforts also include alternative fuel solutions as well as the acceleration of electrification, natural gas, hybrid technology and fuel cell alternatives.

We are committed in the near term to improve the efficiency of vehicles that rely on internal combustion engines.

Our engines are Tier 4 compliant in the United States, and Stage V compliant in Europe.

We were one of the first in our industry to adopt Selective Catalytic Reduction (“SCR”) technology.

SCR systems are highly efficient at treating the engine-out exhaust, significantly reducing NO X emissions, as well as carbon release.

We are piloting a fully electric Fendt ® tractor that has current potential in livestock, greenhouse farming and specialty crops as well as municipality applications.

We look to further advance this technology to develop battery powered equipment in other agricultural applications to enable our customers to reduce the CO 2 footprint in their production processes.

Lastly, We plan to grow our remanufacturing business with respect to engines and other components in order to avoid energy use and emissions, to eliminate waste and to conserve raw materials.

We intend to complete a climate risk assessment in 2021 that will encompass our global operations and markets that we believe will inform a set of climate actionable goals to ensure our business is both financially resilient and optimal for growth during the transition to a low carbon economy.

We also are in the process of reviewing various components of our business in order to identify measurable sustainability metrics for which we can establish future improvement goals.

Elevating Employee Health, Safety and Well-Being

Safety is a priority at AGCO, and we want to ensure that all of our workplaces protect the health and safety of our employees, as well as prevent long-term occupational health risks.

We conduct occupational risk assessments regularly, leveraging our long-term shop floor experience, and are committed to achieving zero work-related fatalities across our global operations.

We are embedding a new enterprise-wide model to advance our culture of health and safety, built upon the success of our current health and safety program that was launched in 2014.

Our goal is to raise productivity and lower accident incident rates in the countries in which we operate.

Prioritizing Animal Welfare in Food Production

We are committed to a culture that supports animal welfare, and we intend to leverage technology in order to drive innovation for animal-based food production that ensures the care, nutrition, health and welfare of farm animals.

We also intend on being a leader in promoting awareness of the advances in modern animal agriculture, demonstrating how innovations are helping farmers to care for their animals, while also helping to reduce the environmental impact of animal agricultural operations.

Digital innovation is at the forefront of modern animal agriculture, and our platform for protein operations helps farmers monitor their livestock including feed, watering, animal weight, ventilation, cooling, heating and lighting data.

Digitalization of the farm not only provides valuable insight to inform product and service evolution to the farmer, but it also provides food transparencies that consumers care about.

We are enhancing our strategy to design, engineer and manufacture industry-leading protein solutions, building upon and further developing our advanced aviary systems, precision-feeding systems and organic sheds.

For additional information on our sustainability efforts and reporting, refer to the “Corporate Social Responsibility” section on our website located under “Investors.”

Human Capital

We have approximately 21,400 employees worldwide, who are guided by our Company’s clear purpose – Farmer-focused solutions to sustainably feed our world.

Employees are further guided by our global Code of Conduct, which builds on the foundation of our embedded core values:

Integrity, Trust, Respect, Team Spirit and Accountability.

We are committed to fostering a diverse and inclusive workplace that attracts and retains exceptional talent.

Through ongoing talent development, comprehensive compensation and benefits, and a focus on health, safety and employee well-being, we strive to help our employees in all aspects of their lives so they can do their best work.

While fluctuations may occur within our workforce from time to time, we manage and track our attrition rates, while also ensuring that key positions critical to our performance our appropriately staffed.

We also analyze employee departure data so that we can continually improve upon the employee experience.

During 2020, our employee turnover rate related to voluntary terminations was approximately 5.3%.

Unions, Collective Bargaining Agreements and Work Councils

Of our 21,400 employees worldwide, approximately 4,730 are located in the United States and Canada.

A majority of our employees at our manufacturing facilities, in the aggregate, are represented by collective bargaining agreements and union contracts with terms that expire on varying dates.

We currently do not expect any significant difficulties in renewing these agreements.

Some examples of key programs and initiatives that we are focused on to enable us to attract, retain and develop our diverse workforce are described below:

To facilitate talent attraction and retention, we strive to make AGCO an inclusive and safe workplace, with opportunities for our employees to grow and develop in their careers, supported by strong compensation, benefits and health and wellness programs, and by platforms that build connections between our employees and their communities.

Over the past year, our employees have completed online and instructor-led courses across a broad range of categories – leadership, inclusion and diversity, professional skills, technical competencies and compliance.

We are deeply committed to identifying and developing the next generation of top-tier leadership with a special focus on diverse and technologically innovative talent.

We conduct annual in-depth talent and succession reviews with our senior leadership team that focuses on accelerating talent development, strengthening succession pipelines, and advancing diversity representation for our most critical roles.

We are committed to providing total rewards that are market-competitive and performance-based, driving innovation and operational excellence.

Our compensation programs, practices, and policies reflect our commitment to reward short- and long-term performance that aligns with, and drives stockholder value.

Total direct compensation is generally positioned within a competitive range of the market median, with differentiation based on tenure, skills, proficiency, and performance to attract and retain key talent.

In addition to salaries, our compensation programs include annual incentive bonuses, stock awards, and participation in various retirement savings plans, dependent upon the position and level of employee, and the countries in which we operate.

We also invest in talent development initiatives to support the ongoing career development of all employees, including learning management and leadership programs targeted towards female and minority populations.

Health, Wellness and Safety

We are also committed to the health, safety and wellness of our employees.

For instance, in the United States, we provide our employees and their families with flexible and convenient health and wellness programs, including competitive benefits arrangements.

In response to the COVID-19 pandemic, we implemented significant changes that we determined were in the best interest of our employees, as well as the communities in which we operate, of which comply with government regulations.

This includes having our employees work from home when possible and implementing additional safety measures for employees continuing critical on-site work.

Our commitment to diversity and inclusion starts at the top with a highly skilled and diverse board.

Three of our 13 board members are women.

Women represent approximately 12% of our full-time executive positions at the senior vice president and vice president levels, and approximately 16% of our overall full-time management-level employees.

Building upon our core values, our employees value learning from different perspectives and welcome the opportunity to work with those of diverse backgrounds.

Through our global TRAIT (our diversity and inclusion initiative), employees take part in robust training, such as creating an inclusive environment and cultural training.

We also provide our employees with resource groups such as AGCO’s Global Women’s Network, and AGCO’s Black Employee Network, to support a broader understanding of experiences as well as to drive awareness aimed to combat unconscious bias.

Through our TRAIT initiatives, we encourage employees to become involved in their communities, contributing time and talent for the improvement of the communities in which they live and work.

Available Information

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business