What changed in this filing

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Item 1. Financial Statements

2021-11-08 compared with 2021-08-06 · 284 added, 227 removed, 783 unchanged (39% of the section changed)

3 unchanged sentences

(unaudited and in millions, except share amounts)

June 30, 2021 December 31, 2020

September 30, 2021 December 31, 2020

Current Assets:

Cash and cash equivalents $ 500.2 $ 1,119.1

Cash, cash equivalents and restricted cash $ 537.0 $ 1,119.1

Accounts and notes receivable, net 1,056.6 856.0

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Common stock;

$ 0.01 par value, 150,000,000 shares authorized, 75,385,755 and 74,962,231 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively

$ 0.01 par value, 150,000,000 shares authorized, 74,834,173 and 74,962,231 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively

Additional paid-in capital 3.6 30.9

9 unchanged sentences

(unaudited and in millions, except per share data)

Three Months Ended June 30,

Three Months Ended September 30,

Net sales $ 2,725.1 $ 2,497.5

5 unchanged sentences

Amortization of intangibles

Goodwill impairment charge

Restructuring expenses

Bad debt (credit) expense ( 0.3 ) 1.4

Bad debt expense 0.4 5.8

Income from operations 251.9 224.0

6 unchanged sentences

Net income 182.4 158.1

Net (income) loss attributable to noncontrolling interests ( 1.6 ) 9.7

Net income attributable to noncontrolling interests ( 1.1 ) ( 0.8 )

Net income attributable to AGCO Corporation and subsidiaries $ 181.3 $ 157.3

8 unchanged sentences

(unaudited and in millions, except per share data)

Six Months Ended June 30,

Nine Months Ended September 30,

Net sales $ 7,983.1 $ 6,432.6

27 unchanged sentences

(unaudited and in millions)

Three Months Ended June 30,

Three Months Ended September 30,

Net income $ 182.4 $ 158.1

Other comprehensive income (loss), net of reclassification adjustments:

Other comprehensive loss, net of reclassification adjustments:

Foreign currency translation adjustments ( 65.4 ) ( 30.3 )

1 unchanged sentence

Deferred gains and losses on derivatives, net of tax ( 3.4 ) ( 1.1 )

Other comprehensive income (loss), net of reclassification adjustments 80.4 ( 31.3 )

Other comprehensive loss, net of reclassification adjustments ( 66.2 ) ( 28.0 )

Comprehensive income 116.2 130.1

1 unchanged sentence

Comprehensive income attributable to AGCO Corporation and subsidiaries $ 115.1 $ 131.5

Six Months Ended June 30,

Nine Months Ended September 30,

Net income $ 618.2 $ 284.4

4 unchanged sentences

Other comprehensive income (loss), net of reclassification adjustments 6.7 ( 261.2 )

Comprehensive income (loss) 508.7 ( 106.9 )

Comprehensive income 624.9 23.2

Comprehensive (income) loss attributable to noncontrolling interests ( 3.7 ) 12.7

Comprehensive income (loss) attributable to AGCO Corporation and subsidiaries $ 506.1 $ ( 95.6 )

Comprehensive income attributable to AGCO Corporation and subsidiaries $ 621.2 $ 35.9

See accompanying notes to condensed consolidated financial statements.

2 unchanged sentences

(unaudited and in millions)

Six Months Ended June 30,

Nine Months Ended September 30,

Cash flows from operating activities:

Net income $ 618.2 $ 284.4

Adjustments to reconcile net income to net cash used in operating activities:

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

Depreciation 164.2 154.9

13 unchanged sentences

Total adjustments ( 576.7 ) ( 60.3 )

Net cash used in operating activities ( 124.9 ) ( 221.6 )

Net cash provided by operating activities 41.5 224.1

Cash flows from investing activities:

2 unchanged sentences

Investments in unconsolidated affiliates ( 1.2 ) ( 4.7 )

(Purchase) sale of businesses, net of cash acquired 5.4 —

(Purchase) sale of businesses, net, and net of cash acquired ( 16.8 ) ( 2.8 )

Other ( 2.4 ) —

10 unchanged sentences

Effects of exchange rate changes on cash, cash equivalents and restricted cash ( 30.8 ) ( 15.7 )

Decrease in cash, cash equivalents and restricted cash ( 618.9 ) ( 28.4 )

(Decrease) increase in cash, cash equivalents and restricted cash ( 582.1 ) 78.2

Cash, cash equivalents and restricted cash, beginning of period 1,119.1 432.8

10 unchanged sentences

Certain prior period amounts have been reclassified to conform to the current period presentation.

The Company cannot predict the future impact of the COVID-19 pandemic on its business, including any related impacts of the increased volatility in global economic and political environments, uncertain market demand for its products, supply chain disruptions, possible workforce unavailability, exchange rate and commodity price volatility and availability of financing, and their impact to the Company’s net sales, production volumes, costs and overall financial condition and available funding.

The Company cannot predict the future impact of the COVID-19 pandemic on its business, including any related impacts on the global economic and political environments, market demand for its products, supply chain disruptions, possible workforce unavailability, exchange rate and commodity prices and availability of financing, and their impact to the Company’s net sales, production volumes, costs and overall financial conditions.

Recently Adopted Accounting Pronouncements

During the six months ended June 30, 2021, the Company adopted the following pronouncements, which did not have a material impact to the Company’s results of operations, financial condition and cash flows.

During the nine months ended September 30, 2021, the Company adopted the following pronouncements, which did not have a material impact to the Company’s results of operations, financial condition and cash flows.

• ASU 2019-12 – “Simplifying the Accounting for Income Taxes” was adopted as of January 1, 2021.

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Therefore, adoption of the standard by the Company’s finance joint ventures likely will impact the Company’s “Investment in affiliates” and “Equity in net earnings of affiliates.” The Company’s finance joint ventures currently are evaluating the impact of ASU 2016-13 to their results of operations and financial condition.

RESTRUCTURING EXPENSES

In recent years, the Company has announced and initiated several actions to rationalize employee headcount in various manufacturing facilities and administrative offices located in the U.S., Europe, South America, Africa and China in order to reduce costs in response to softening global demand.

Restructuring expenses activity during the three and six months ended June 30, 2021 is summarized as follows (in millions):

Notes to Condensed Consolidated Financial Statements - Continued

Employee Severance Facility Closure Costs Other Related Closure Costs Total

On August 13, 2021, the Company acquired Headsight, LLC (“Headsight”) for approximately $ 16.8 million.

Headsight is headquartered in Bremen, Indiana and manufactures header height sensors used in corn and grain harvesting operations.

The Company allocated the purchase price to the assets acquired and liabilities assumed based on estimates of their fair values as of the acquisition date.

The acquired net assets primarily consisted of accounts receivable, inventories, lease right-of-use assets and liabilities, accounts payable and accrued expenses, property, plant and equipment, and customer relationship, technology and trademark identifiable intangible assets.

The Company recorded approximately $ 4.8 million of customer relationship, technology and trademark identifiable intangible assets and approximately $ 8.9 million of goodwill associated with the acquisition.

The results of operations of Headsight have been included in the Company’s Condensed Consolidated Financial Statements as of and from the date of acquisition.

The associated goodwill has been included in the Company’s North America geographical reportable segment.

Proforma financial information related to the acquisition of Headsight was not material to the Company’s result of operations.

The acquired identifiable intangible assets of Headsight as of the date of the acquisition are summarized in the following table (in millions):

Intangible Asset

Amount Weighted-Average Useful Life

Customer relationships $ 3.2 7 years

Technology 0.9 10 years

Trademarks 0.7 7 years

On September 10, 2021, the Company acquired Farm Robotics and Automation S.L.

(“Faromatics”) for approximately € 4.6 million (or approximately $ 5.5 million) net of approximately € 0.1 million (or approximately $ 0.1 million) of cash and € 0.8 million (or approximately $ 0.9 million) of escrowed cash which could be payable by the Company with in 18 months of the acquisition date.

Faromatics is headquartered in Barcelona, Spain, and is the creator of ChickenBoy ® , the world's first ceiling-suspended robot that monitors broiler chickens and helps farmers increase animal welfare and farm productivity.

The Company allocated the purchase price to the assets acquired and liabilities assumed based on estimates of their fair values as of the acquisition date.

The acquired net assets primarily consisted of inventories, other assets, lease right-of-use assets and liabilities, accounts payable and accrued expenses, property, plant and equipment, and technology identifiable intangible assets.

The Company recorded approximately € 1.5 million (or approximately $ 1.7 million) of technology and approximately € 4.8 million (or approximately $ 5.7 million) of goodwill associated with the acquisition.

The results of operations of Faromatics have been included in the Company’s Condensed Consolidated Financial Statements as of and from the date of acquisition.

The associated goodwill has been included in the Company’s North America and Europe/Middle East geographical reportable segments.

Proforma financial information related to the acquisition of Faromatics was not material to the Company’s result of operations.

The acquired identifiable intangible assets of Faromatics as of the date of the acquisition are summarized in the following table (in millions):

Intangible Asset

Amount Weighted-Average Useful Life

Technology $ 1.7 15 years

Notes to Condensed Consolidated Financial Statements - Continued

RESTRUCTURING EXPENSES

Restructuring expenses activity during the three and nine months ended September 30, 2021 is summarized as follows (in millions):

Gain on Sale of Joint Venture Employee Severance Facility Closure Costs Other Related Closure Costs Total

Balance as of December 31, 2020 $ — $ 11.1 $ 3.9 $ 1.8 $ 16.8

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Second quarter 2021 provision — 3.9 — 1.5 5.4

Second quarter 2021 cash activity ( 1.9 ) — ( 0.7 ) ( 2.6 )

Second quarter 2021 provision reversal — ( 0.7 ) — — ( 0.7 )

Second quarter 2021 cash activity — ( 1.9 ) — ( 0.7 ) ( 2.6 )

Foreign currency translation — — — 0.2 0.2

Balance as of June 30, 2021 $ — $ 11.3 $ — $ 2.6 $ 13.9

Third quarter 2021 provision — 5.1 — — 5.1

Third quarter 2021 provision reversal ( 2.5 ) ( 1.2 ) — — ( 3.7 )

Third quarter 2021 cash activity 2.5 ( 3.0 ) — ( 1.4 ) ( 1.9 )

Foreign currency translation — ( 0.2 ) — ( 0.1 ) ( 0.3 )

Balance as of September 30, 2021 $ — $ 12.0 $ — $ 1.1 $ 13.1

In addition, during the three months ended December 31, 2019, the Company exited and sold it’s 50 % interest in its USC, LLC joint venture to its joint venture partner.

The Company recorded a loss of approximately $ 2.1 million associated with the sale, reflected at the time within “Restructuring expenses” in the Company’s Consolidated Statements of Operations.

As a result of the final payments received from the former joint venture partner related to the sale during the three months ended September 30, 2021, the Company recorded a gain of approximately $ 2.5 million, also reflected within “Restructuring expenses” in the Company’s Condensed Consolidated Statements of Operations.

STOCK COMPENSATION PLANS

The Company recorded stock compensation expense as follows for the three and six months ended June 30, 2021 and 2020 (in millions):

Three Months Ended June 30, Six Months Ended June 30,

The Company recorded stock compensation expense as follows for the three and nine months ended September 30, 2021 and 2020 (in millions):

Three Months Ended September 30, Nine Months Ended September 30,

2021 2020 2021 2020

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Under the Company’s Long-Term Incentive Plan (the “Plan”), up to 10,000,000 shares of AGCO common stock may be issued.

As of June 30, 2021, of the 10,000,000 shares reserved for issuance under the Plan, approximately 3,859,466 shares were available for grant, assuming the maximum number of shares are earned related to the performance award grants discussed below.

The Plan allows the Company, under the direction of the Board of Directors’ Talent and Compensation Committee, to make grants of performance shares, stock appreciation rights, restricted stock units and restricted stock awards to employees, officers and non-employee directors of the Company.

As of September 30, 2021, of the 10,000,000 shares reserved for issuance under the Plan, 3,860,676 shares were available for grant, assuming the maximum number of shares are earned related to the performance award grants discussed below.

The Plan allows the Company, under the direction of the Board of Directors’ Talent and Compensation Committee, to

Notes to Condensed Consolidated Financial Statements - Continued

make grants of performance shares, stock appreciation rights, restricted stock units and restricted stock awards to employees, officers and non-employee directors of the Company.

Long-Term Incentive Plan and Related Performance Awards

The weighted average grant-date fair value of performance awards granted under the Plan during the six months ended June 30, 2021 and 2020 was $ 123.26 and $ 70.84 , respectively.

During the six months ended June 30, 2021, the Company granted 269,508 performance awards related to varying performance periods.

The weighted average grant-date fair value of performance awards granted under the Plan during the nine months ended September 30, 2021 and 2020 was $ 123.33 and $ 70.84 , respectively.

During the nine months ended September 30, 2021, the Company granted 281,310 performance awards related to varying performance periods.

The awards granted assume the maximum target levels of performance are achieved.

1 unchanged sentence

The 2021 grant of performance award shares is subject to a total shareholder return modifier.

Notes to Condensed Consolidated Financial Statements - Continued

Performance award transactions during the six months ended June 30, 2021 are presented as if the Company were to achieve its maximum levels of performance and assume the 2021 performance awards subject to the total shareholder return modifier are achieved at target levels under the plan awards, and were as follows:

Performance award transactions during the nine months ended September 30, 2021 are presented as if the Company were to achieve its maximum levels of performance and assume the 2021 performance awards subject to the total shareholder return modifier are achieved at target levels under the plan awards, and were as follows:

Shares awarded but not earned at January 1 582,952

1 unchanged sentence

Shares forfeited ( 12,238 )

Shares earned ( 142 )

Shares awarded but not earned at June 30 843,558

As of June 30, 2021, the total compensation cost related to unearned performance awards not yet recognized, assuming the Company’s current projected assessment of the level of performance that will be achieved, was approximately $ 35.3 million, and the weighted average period over which it is expected to be recognized is approximately two years .

Shares vested ( 142 )

Shares awarded but not earned at September 30 851,882

As of September 30, 2021, the total compensation cost related to unearned performance awards not yet recognized, assuming the Company’s current projected assessment of the level of performance that will be achieved, was approximately $ 27.4 million, and the weighted average period over which it is expected to be recognized is approximately two years .

The compensation cost not yet recognized could be higher or lower based on actual achieved levels of performance.

Restricted Stock Unit Awards

The weighted average grant-date fair value of the restricted stock units ("RSUs") granted under the Plan during the six months ended June 30, 2021 and 2020 was $ 113.63 and $ 70.83 , respectively.

During the six months ended June 30, 2021, the Company granted 89,892 RSU awards.

The weighted average grant-date fair value of the restricted stock units ("RSUs") granted under the Plan during the nine months ended September 30, 2021 and 2020 was $ 113.91 and $ 70.83 , respectively.

During the nine months ended September 30, 2021, the Company granted 92,848 RSU awards.

These awards entitle the participant to receive one share of the Company’s common stock for each RSU granted and vest one-third per year over a three-year requisite service period.

The 2020 grant of RSU’s to certain executives had a three-year cliff vesting requirement subject to adjustment based on total shareholders return metric relative to the Company's defined peer group.

The 2020 grant of RSU’s to certain executives has a three-year cliff vesting requirement subject to adjustment based on a total shareholders return metric relative to the Company's defined peer group.

The compensation expense associated with these awards is being amortized ratably over the requisite service period for the awards that are expected to vest.

RSU transactions during the six months ended June 30, 2021 assume the 2020 RSUs subject to the total shareholder return modifier are achieved at target levels, and were as follows:

RSU transactions during the nine months ended September 30, 2021 assume the 2020 RSUs subject to the total shareholder return modifier are achieved at target levels, and were as follows:

RSUs awarded but not vested at January 1 143,287

2 unchanged sentences

RSUs vested ( 63,397 )

RSUs awarded but not vested at June 30 168,167

As of June 30, 2021, the total compensation cost related to the unvested RSUs not yet recognized was approximately $ 12.0 million, and the weighted average period over which it is expected to be recognized is approximately one and one-half years.

RSUs awarded but not vested at September 30 170,512

As of September 30, 2021, the total compensation cost related to the unvested RSUs not yet recognized was approximately $ 10.7 million, and the weighted average period over which it is expected to be recognized is approximately one and one-half years.

Notes to Condensed Consolidated Financial Statements - Continued

Stock-Settled Appreciation Rights

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The Company estimates the fair value of the grants using the Black-Scholes option pricing model.

SSAR transactions during the six months ended June 30, 2021 were as follows:

SSAR transactions during the nine months ended September 30, 2021 were as follows:

SSARs outstanding at January 1 403,150

2 unchanged sentences

SSARs canceled or forfeited ( 904 )

SSARs outstanding at June 30 229,153

The Company did not grant any SSARs during the six months ended June 30, 2021, and does not currently anticipate granting any SSARs in the future.

As of June 30, 2021, the total compensation cost related to the unvested SSARs not yet

Notes to Condensed Consolidated Financial Statements - Continued

recognized was approximately $ 1.3 million, and the weighted average period over which it is expected to be recognized is approximately two years .

SSARs outstanding at September 30 210,235

The Company did not grant any SSARs during the nine months ended September 30, 2021, and does not currently anticipate granting any SSARs in the future.

As of September 30, 2021, the total compensation cost related to the unvested SSARs not yet recognized was approximately $ 1.1 million, and the weighted average period over which it is expected to be recognized is approximately two years .

Director Restricted Stock Grants

1 unchanged sentence

The 2021 grant was made on April 22, 2021 and equated to 9,117 shares of common stock, of which 7,899 shares of common stock were issued after shares were withheld for taxes.

The Company recorded stock compensation expense of approximately $ 1.4 million during the six months ended June 30, 2021 associated with these grants.

The Company recorded stock compensation expense of approximately $ 1.4 million during the nine months ended September 30, 2021 associated with these grants.

GOODWILL AND OTHER INTANGIBLE ASSETS

Changes in the carrying amount of goodwill during the six months ended June 30, 2021 are summarized as follows (in millions):

Changes in the carrying amount of goodwill during the nine months ended September 30, 2021 are summarized as follows (in millions):

North America South America Europe/Middle East Asia/Pacific/Africa Consolidated

Balance as of December 31, 2020 $ 593.4 $ 87.5 $ 501.3 $ 124.3 $ 1,306.5

Acquisitions 13.0 — 1.6 — 14.6

Foreign currency translation — ( 3.9 ) ( 24.1 ) ( 3.8 ) ( 31.8 )

Balance as of June 30, 2021 $ 593.6 $ 90.9 $ 487.8 $ 122.0 $ 1,294.3

Balance as of September 30, 2021 $ 606.4 $ 83.6 $ 478.8 $ 120.5 $ 1,289.3

Goodwill is tested for impairment on an annual basis and more often if indications of impairment exist.

The Company conducts its annual impairment analyses as of October 1 each fiscal year.

As of June 30, 2020, the Company concluded there were indicators of impairment during the three months ended June 30, 2020 related to one of its smaller reporting units, which is a 50 %-owned tillage and seeding joint venture.

As a result, an impairment of the entire goodwill balance of this reporting unit was necessary as of June 30, 2020.

During the three months ended June 30, 2020, a non-cash impairment charge of approximately $ 20.0 million was recorded as "Impairment charges" within the Company's Condensed Consolidated Statements of Operations, with an offsetting benefit of approximately $ 10.0 million included within "Net loss attributable to noncontrolling interests." During the three months ended June 30, 2021, the Company sold its 50 % interest in the joint venture.

As of June 30, 2020, the Company concluded there were indicators of impairment during the three months ended June 30, 2020 related to one of its smaller reporting units, which was a 50 %-owned tillage and seeding joint venture.

As a result, the entire goodwill balance of this reporting unit was impaired, and during the three months ended June 30, 2020, the Company recorded a non-cash impairment charge of approximately $ 20.0 million as "Impairment charges" within the Company's Condensed Consolidated Statements of Operations, with an offsetting benefit of approximately $ 10.0 million included within "Net loss attributable to noncontrolling interests." During the three months ended June 30, 2021, the Company sold its 50 % interest in the joint venture.

Notes to Condensed Consolidated Financial Statements - Continued

Changes in the carrying amount of acquired intangible assets during the six months ended June 30, 2021 are summarized as follows (in millions):

Changes in the carrying amount of acquired intangible assets during the nine months ended September 30, 2021 are summarized as follows (in millions):

Gross carrying amounts:

1 unchanged sentence

Balance as of December 31, 2020 $ 206.0 $ 585.4 $ 158.0 $ 9.1 $ 958.5

Acquisitions 0.7 3.2 2.6 — 6.5

Sale of business ( 1.3 ) ( 4.4 ) ( 17.1 ) — ( 22.8 )

Foreign currency translation ( 4.1 ) ( 8.3 ) ( 4.6 ) 0.1 ( 16.9 )

Balance as of June 30, 2021 $ 202.6 $ 578.3 $ 138.3 $ 9.2 $ 928.4

Balance as of September 30, 2021 $ 201.3 $ 575.9 $ 138.9 $ 9.2 $ 925.3

Accumulated amortization:

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Foreign currency translation ( 1.3 ) ( 6.0 ) ( 3.6 ) 0.1 ( 10.8 )

Balance as of June 30, 2021 $ 98.6 $ 402.9 $ 94.0 $ 3.6 $ 599.1

Balance as of September 30, 2021 $ 100.3 $ 407.9 $ 94.6 $ 3.6 $ 606.4

Indefinite-lived intangible assets:

2 unchanged sentences

Foreign currency translation ( 2.0 )

Balance as of June 30, 2021 $ 88.2

Balance as of September 30, 2021 $ 87.4

The Company currently amortizes certain acquired intangible assets, primarily on a straight-line basis, over their estimated useful lives, which range from five to 50 years.

Notes to Condensed Consolidated Financial Statements - Continued

Long-term debt consisted of the following at June 30, 2021 and December 31, 2020 (in millions):

June 30, 2021 December 31, 2020

Long-term debt consisted of the following at September 30, 2021 and December 31, 2020 (in millions):

September 30, 2021 December 31, 2020

Senior term loan due 2022 $ 173.8 $ 184.0

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Total long-term indebtedness, less current portion $ 1,319.1 $ 1,256.7

0.800 % Senior Notes Due 2028

On October 6, 2021, the Company issued € 600.0 million (or approximately $ 692.5 million) of senior notes at an issue price of 99.993 %.

The notes mature on October 6, 2028, and interest is payable annually, in arrears, at 0.800 %.

The senior notes contain covenants restricting, among other things, the incurrence of certain secured indebtedness.

The senior notes are subject to both optional and mandatory redemption in certain events.

During October 2021, the Company used the proceeds received from the senior notes to repay its € 150.0 million (or approximately $ 173.4 million as of October 8, 2021) senior term loan due 2022, $ 370.0 million related to its multi-currency revolving credit facility, and two of its 2016 senior term loans due October 2021 with an aggregate amount outstanding of € 192.0 million (or approximately $ 223.8 million as of October 19, 2021).

In August 2021, prior to the issuance of the senior notes, the Company repaid two of its 2018 senior term loans due August 2021 with an aggregate amount of € 72.0 million (or approximately $ 85.5 million as of August 1, 2021).

The Company intends to use an additional aggregate amount of € 73.5 million (or approximately $ 85.2 million as of September 30, 2021) of the proceeds from the issuance of the senior notes and existing cash to repay one of its 2016 senior term loans due October 2023 and one of its 2018 senior term loans due August 2023.

Senior Term Loan Due 2022

In October 2018, the Company entered into a term loan agreement with Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A.

(“Rabobank”) in the amount of € 150.0 million (or approximately $ 178.1 million as of June 30, 2021).

The Company is permitted to prepay the term loan before its maturity date of October 28, 2022.

Interest is payable on the term loan quarterly in arrears at an annual rate equal to the Euro Interbank Offered Rate (“EURIBOR”) plus a margin ranging from 0.875 % to 1.875 % based on the Company’s credit rating.

In October 2018, the Company entered into a term loan agreement with Coöperatieve Rabobank U.A (“Rabobank”) in the amount of € 150.0 million (or approximately $ 173.8 million as of September 30, 2021).

Interest was payable on the term loan quarterly in arrears at an annual rate equal to the Euro Interbank Offered Rate (“EURIBOR”) plus a margin ranging from 0.875 % to 1.875 % based on the Company’s credit rating.

As mentioned previously, during October 2021, the Company repaid its senior term loan of € 150.0 million (or approximately $ 173.4 million as of October 8, 2021) with the proceeds from its 0.800 % senior notes due 2028.

Notes to Condensed Consolidated Financial Statements - Continued

Credit Facility

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dollars plus 1.0 %, plus a margin ranging from 0.0 % to 0.875 % based on the Company’s credit rating.

As of June 30, 2021 the Company had $ 260.0 million outstanding borrowings under the revolving credit facility and had the ability to borrow approximately $ 540.0 million under the revolving credit facility.

As of September 30, 2021 the Company had $ 395.0 million outstanding borrowings under the revolving credit facility and had the ability to borrow approximately $ 405.0 million under the revolving credit facility.

As of December 31, 2020 the Company had no outstanding borrowings under the revolving credit facility and had the ability to borrow approximately $ 800.0 million under the facility.

On April 9, 2020, the Company entered into an amendment to its credit facility to include incremental term loans (“2020 term loans”) that allow the Company to borrow aggregate principal amounts of € 235.0 million and $ 267.5 million (or an aggregate of approximately $ 546.5 million as of June 30, 2021).

As mentioned previously, on October 15, 2021, the Company repaid $ 370.0 million of its multicurrency revolving credit facility as a result of the issuance of its 0.800 % senior notes due 2028.

Amounts can be drawn incrementally at any time prior to maturity, but must be drawn down proportionately.

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There were no other borrowings on the 2020 term loans subsequent to the initial borrowings in April 2020.

On February 16, 2021, the Company repaid the 2020 term loans of € 117.5 million and $ 133.8 million (or an aggregate of

Notes to Condensed Consolidated Financial Statements - Continued

approximately $ 276.0 million as of February 16, 2021).

As of June 30, 2021, the Company had the ability to borrow € 117.5 million and $ 133.7 million (or an aggregate of approximately $ 273.2 million) of the 2020 term loans.

Interest on U.S.

dollar borrowings under the Company’s credit facility and the 2020 term loans is calculated based upon LIBOR.

In the event that LIBOR is no longer published, interest will be calculated upon either a base rate or the secured overnight financing rate depending on cost.

The credit facility and 2020 term loans also provide for an expedited amendment process once a replacement for LIBOR is established.

On February 16, 2021, the Company repaid the 2020 term loans of € 117.5 million and $ 133.8 million (or an aggregate of approximately $ 276.0 million as of February 16, 2021).

As of September 30, 2021, the Company had the ability to borrow € 117.5 million and $ 133.7 million (or an aggregate of approximately $ 269.8 million) of the 2020 term loans.

As described above, the Company’s credit facility allows it to select from among various interest rate options.

Due to the phase-out of LIBOR, LIBOR-based rates no longer will be available for borrowings denominated in U.S.

dollars after December 31, 2022, and for loans denominated in other currencies after December 31, 2021.

The interest rates reflected in the Company’s credit facility were designed to accommodate the discontinuation of LIBOR-based rates and a shift to the “Secured Overnight Financing Rate” or a base rate, and, as such, the Company does not believe that moving to other rates will have a materially adverse effect on the Company’s results of operations or financial position.

In addition, the credit facility agreement also provides for an expedited amendment process once a replacement for LIBOR is established, which the Company may elect to utilize to add additional interest-rate alternatives.

1.002 % Senior Term Loan Due 2025

On January 25, 2019, the Company borrowed € 250.0 million (or approximately $ 296.8 million as of June 30, 2021) from the European Investment Bank.

On January 25, 2019, the Company borrowed € 250.0 million (or approximately $ 289.7 million as of September 30, 2021) from the European Investment Bank.

The loan matures on January 24, 2025.

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In October 2016, the Company borrowed an aggregate amount of € 375.0 million through a group of seven related term loan agreements, and in August 2018, the Company borrowed an additional aggregate amount of € 338.0 million through a group of another seven related term loan agreements.

Of the 2016 term loans, an aggregate amount of € 56.0 million (or approximately $ 61.1 million) was repaid upon maturity of two term loan agreements in October 2019.

In aggregate, the Company has indebtedness of € 657.0 million (or approximately $ 779.9 million as of June 30, 2021) through this group of twelve remaining related term loan agreements.

Of the 2016 term loans, the Company repaid an aggregate amount of € 56.0 million (or approximately $ 61.1 million) upon maturity of two term loan agreements in October 2019.

Additionally, as mentioned previously, the Company repaid € 192.0 million (or approximately $ 223.8 million as of October 19, 2021) upon maturity of two 2016 senior term loans in October 2021.

In August 2021, prior to the issuance of the senior notes due 2028, the

Notes to Condensed Consolidated Financial Statements - Continued

Company repaid two of its 2018 senior term loans upon maturity with an aggregate amount of € 72.0 million (or approximately $ 85.5 million as of August 1, 2021).

In aggregate, as of September 30, 2021, the Company had indebtedness of € 585.0 million (or approximately $ 677.8 million as of September 30, 2021) through a group of ten remaining related term loan agreements.

As of October 31, 2021, as a result of further repayments discussed previously, the Company had indebtedness of € 393.0 million (or approximately $ 456.7 million) through a group of eight remaining term loan agreements.

The provisions of the term loan agreements are substantially identical, with the exception of interest rate terms and maturities.

The Company is permitted to prepay the term loans before their maturity dates.

For the term loans with a fixed interest rate, interest is payable in arrears on an annual basis, with interest rates ranging from 0.70 % to 2.26 % and maturity dates between August 2021 and August 2028.

For the term loans with a floating interest rate, interest is payable in arrears on a semi-annual basis, with interest rates based on the EURIBOR plus a margin ranging from 0.70 % to 1.25 % and maturity dates between August 2021 and August 2025.

As of September 30, 2021, for the term loans with a fixed interest rate, interest is payable in arrears on an annual basis, with interest rates ranging from 0.90 % to 2.26 % and maturity dates between October 2021 and August 2028.

For the term loans with a floating interest rate, interest is payable in arrears on a semi-annual basis, with interest rates based on the EURIBOR plus a margin ranging from 0.90 % to 1.25 % and maturity dates between October 2021 and August 2025.

Short-Term Borrowings

As of June 30, 2021 and December 31, 2020, the Company had short-term borrowings due within one year of approximately $ 55.8 million and $ 33.8 million, respectively.

As of September 30, 2021 and December 31, 2020, the Company had short-term borrowings due within one year of approximately $ 77.8 million and $ 33.8 million, respectively.

Standby Letters of Credit and Similar Instruments

The Company has arrangements with various banks to issue standby letters of credit or similar instruments, which guarantee the Company’s obligations for the purchase or sale of certain inventories and for potential claims exposure for insurance coverage.

At June 30, 2021 and December 31, 2020, outstanding letters of credit totaled approximately $ 14.6 million and $ 14.4 million, respectively.

Notes to Condensed Consolidated Financial Statements - Continued

At September 30, 2021 and December 31, 2020, outstanding letters of credit totaled approximately $ 14.6 million and $ 14.4 million, respectively.

RECOVERABLE INDIRECT TAXES

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The Company believes that these tax credits, net of established reserves, are realizable.

The Company had recorded approximately $ 114.9 million and $ 91.2 million, respectively, of VAT tax credits, net of reserves, as of June 30, 2021 and December 31, 2020.

Inventories at June 30, 2021 and December 31, 2020 were as follows (in millions):

June 30, 2021 December 31, 2020

The Company had recorded approximately $ 122.2 million and $ 91.2 million, respectively, of VAT tax credits, net of reserves, as of September 30, 2021 and December 31, 2020.

Inventories at September 30, 2021 and December 31, 2020 were as follows (in millions):

September 30, 2021 December 31, 2020

Finished goods $ 760.8 $ 641.3

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Inventories, net $ 2,738.3 $ 1,974.4

Notes to Condensed Consolidated Financial Statements - Continued

PRODUCT WARRANTY

The warranty reserve activity for the three and six months ended June 30, 2021 and 2020, including deferred revenue associated with the Company's extended warranties that have been sold, was as follows (in millions):

Three Months Ended June 30, Six Months Ended June 30,

The warranty reserve activity for the three and nine months ended September 30, 2021 and 2020, including deferred revenue associated with the Company's extended warranties that have been sold, was as follows (in millions):

Three Months Ended September 30, Nine Months Ended September 30,

2021 2020 2021 2020

Balance at beginning of period $ 579.3 $ 409.0 $ 521.8 $ 392.8

Acquisition — 0.2 — 0.2

Accruals for warranties issued during the period 72.7 73.2 242.8 187.1

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Foreign currency translation ( 14.0 ) 12.5 ( 23.9 ) 2.4

Balance at June 30 $ 579.3 $ 409.0 $ 579.3 $ 409.0

Balance at September 30 $ 568.7 $ 438.4 $ 568.7 $ 438.4

The Company’s agricultural equipment products generally are warranted against defects in material and workmanship for a period of one to four years .

The Company accrues for future warranty costs at the time of sale based on historical warranty experience.

Approximately $ 482.2 million, $ 431.6 million and $ 334.3 million of warranty reserves are included in “Accrued expenses” in the Company’s Condensed Consolidated Balance Sheets as of June 30, 2021, December 31, 2020 and June 30, 2020, respectively.

Approximately $ 97.1 million, $ 90.2 million and $ 74.7 million of warranty reserves are included in “Other noncurrent liabilities” in the Company’s Condensed Consolidated Balance Sheets as of June 30, 2021, December 31, 2020, and June 30, 2020, respectively.

Approximately $ 473.5 million, $ 431.6 million and $ 356.4 million of warranty reserves are included in “Accrued expenses” in the Company’s Condensed Consolidated Balance Sheets as of September 30, 2021, December 31, 2020 and September 30, 2020, respectively.

Approximately $ 95.2 million, $ 90.2 million and $ 82.0 million of warranty reserves are included in “Other noncurrent liabilities” in the Company’s Condensed Consolidated Balance Sheets as of September 30, 2021, December 31, 2020, and September 30, 2020, respectively.

The Company recognizes recoveries of the costs associated with warranties it provides when the collection is probable.

When specifics of the recovery have been agreed upon with the Company’s suppliers through confirmation of liability for the recovery, the Company records the recovery within “Accounts and notes receivable, net.” Estimates of the amount of warranty claim recoveries to be received from the Company’s suppliers based upon contractual supplier arrangements are recorded within “Other current assets.”

Notes to Condensed Consolidated Financial Statements - Continued

NET INCOME PER COMMON SHARE

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Diluted net income per common share assumes the exercise of outstanding SSARs and the vesting of performance share awards and RSUs using the treasury stock method when the effects of such assumptions are dilutive.

A reconciliation of net income attributable to AGCO Corporation and subsidiaries and weighted average common shares outstanding for purposes of calculating basic and diluted net income per share for the three and six months ended June 30, 2021 and 2020 is as follows (in millions, except per share data):

Three Months Ended June 30, Six Months Ended June 30,

Notes to Condensed Consolidated Financial Statements - Continued

A reconciliation of net income attributable to AGCO Corporation and subsidiaries and weighted average common shares outstanding for purposes of calculating basic and diluted net income per share for the three and nine months ended September 30, 2021 and 2020 is as follows (in millions, except per share data):

Three Months Ended September 30, Nine Months Ended September 30,

2021 2020 2021 2020

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Diluted net income per share attributable to AGCO Corporation and subsidiaries $ 2.40 $ 2.09 $ 8.11 $ 3.86

There were no SSARs outstanding for the three and six months ended June 30, 2021 that had an antidilutive impact.

SSARs to purchase approximately 0.7 million shares of the Company's common stock for both three and six months ended June 30, 2020 were outstanding but not included in the calculation of weighted average common and common equivalent shares outstanding because they had an antidilutive impact.

At June 30, 2021 and December 31, 2020, the Company had approximately $ 251.1 million and $ 227.9 million, respectively, of gross unrecognized income tax benefits, all of which would affect the Company’s effective tax rate if recognized.

Gross unrecognized income tax benefits as of June 30, 2021 and December 31, 2020 exclude certain indirect favorable effects that relate to other tax jurisdictions of approximately $ 63.7 million and $ 64.1 million, respectively.

At June 30, 2021 and December 31, 2020, the Company had approximately $ 54.9 million and $ 57.1 million, respectively, of accrued or deferred taxes related to uncertain income tax positions connected with ongoing income tax audits in various jurisdictions that it expects to settle or pay in the next 12 months, reflected in “Other current liabilities” in the Company’s Condensed Consolidated Balance Sheets.

At June 30, 2021 and December 31, 2020, the Company had approximately $ 193.4 million and $ 163.8 million, respectively, of accrued taxes and approximately $ 2.8 million and $ 7.0 million, respectively, of deferred taxes related to uncertain tax positions that it expects to settle or pay beyond 12 months, reflected in “Other noncurrent liabilities” and “Deferred tax liabilities,” respectively, in the Company’s Condensed Consolidated Balance Sheets.

There were no SSARs outstanding for the three and nine months ended September 30, 2021 that had an antidilutive impact.

SSARs to purchase approximately 0.5 million and 0.7 million shares of the Company's common stock for the three and nine months ended September 30, 2020, respectively, were outstanding but not included in the calculation of weighted average common and common equivalent shares outstanding because they had an antidilutive impact.

At September 30, 2021 and December 31, 2020, the Company had approximately $ 253.1 million and $ 227.9 million, respectively, of gross unrecognized income tax benefits, all of which would affect the Company’s effective tax rate if recognized.

Gross unrecognized income tax benefits as of September 30, 2021 and December 31, 2020 exclude certain indirect favorable effects that relate to other tax jurisdictions of approximately $ 62.1 million and $ 64.1 million, respectively.

In addition, the gross unrecognized income tax benefits as of September 30, 2021 exclude certain deposits made in a foreign jurisdiction of approximately $ 6.8 million associated with an ongoing audit.

At September 30, 2021 and December 31, 2020, the Company had approximately $ 50.8 million and $ 57.1 million, respectively, of accrued or deferred taxes related to uncertain income tax positions connected with ongoing income tax audits in various jurisdictions that it expects to settle or pay in the next 12 months, reflected in “Other current liabilities” in the Company’s Condensed Consolidated Balance Sheets.

At September 30, 2021 and December 31, 2020, the Company had approximately $ 201.5 million and $ 163.8 million, respectively, of accrued taxes and approximately $ 0.8 million and $ 7.0 million, respectively, of deferred taxes related to uncertain tax positions that it expects to settle or pay beyond 12 months, reflected in “Other noncurrent liabilities” and “Deferred tax liabilities,” respectively, in the Company’s Condensed Consolidated Balance Sheets.

The Company accrues interest and penalties related to unrecognized tax benefits in its provision for income taxes.

At June 30, 2021 and December 31, 2020, the Company had accrued interest and penalties related to unrecognized tax benefits of approximately $ 41.6 million and $ 39.4 million, respectively.

At September 30, 2021 and December 31, 2020, the Company had accrued interest and penalties related to unrecognized tax benefits of approximately $ 41.7 million and $ 39.4 million, respectively.

Generally, tax years 2015 through 2020 remain open to examination by taxing authorities in the United States and certain other foreign tax jurisdictions.

The Company and its subsidiaries are routinely examined by tax authorities in the United States and in various state, local and foreign jurisdictions.

As of June 30, 2021, a number of income tax examinations in foreign jurisdictions are ongoing.

During the three months ended June 30, 2021, the Company’s income tax provision includes the benefit of a reversal of approximately $ 67.8 million related to a valuation allowance previously established against the Company’s net deferred tax

Notes to Condensed Consolidated Financial Statements - Continued

assets in the United States.

As of September 30, 2021, a number of income tax examinations in foreign jurisdictions are ongoing.

The Company’s income tax provision as of September 30, 2021 includes the benefit of a reversal of approximately $ 67.8 million related to a valuation allowance previously established against the Company’s net deferred tax assets in the United States that the Company recorded as of June 30, 2021.

Improvements in income in the United States during 2020 and year-to-date 2021, along with updated future projected income levels, supported the reversal of the valuation allowance.

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A valuation allowance is established when it is more likely than not that some portion or all of the deferred tax assets will not be realized.

The Company regularly assesses the likelihood that its deferred tax assets will be recovered from estimated future taxable income and available tax planning strategies and has determined that all adjustments to the valuation allowances have been appropriate.

The Company regularly assesses the likelihood that its deferred tax assets will be

Notes to Condensed Consolidated Financial Statements - Continued

recovered from estimated future taxable income and available tax planning strategies and has determined that all adjustments to the valuation allowances have been appropriate.

In making this assessment, all available evidence was considered including the current economic climate, as well as reasonable tax planning strategies.

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During 2021 and 2020, the Company designated certain foreign currency contracts as cash flow hedges of expected future sales and purchases.

The total notional value of derivatives that were designated as cash flow hedges was approximately $ 382.0 million and $ 395.8 million as of June 30, 2021 and December 31, 2020, respectively.

The total notional value of derivatives that were designated as cash flow hedges was approximately $ 293.0 million and $ 395.8 million as of September 30, 2021 and December 31, 2020, respectively.

Steel Commodity Contracts

During 2021 and 2020, the Company designated certain steel commodity contracts as cash flow hedges of expected future purchases of steel.

The total notional value of derivatives that were designated as cash flow hedges was approximately $ 16.5 million and $ 14.7 million as of June 30, 2021 and December 31, 2020, respectively.

The total notional value of derivatives that were designated as cash flow hedges was approximately $ 11.9 million and $ 14.7 million as of September 30, 2021 and December 31, 2020, respectively.

Notes to Condensed Consolidated Financial Statements - Continued

The following tables summarize the after-tax impact that changes in the fair value of derivatives designated as cash flow hedges had on accumulated other comprehensive loss and net income during the three and six months ended June 30, 2021 and 2020 (in millions):

The following tables summarize the after-tax impact that changes in the fair value of derivatives designated as cash flow hedges had on accumulated other comprehensive loss and net income during the three and nine months ended September 30, 2021 and 2020 (in millions):

Recognized in Net Income

Three Months Ended June 30, Gain (Loss) Recognized in Accumulated

Three Months Ended September 30, Gain (Loss) Recognized in Accumulated

Other Comprehensive Loss Classification of Gain (Loss) Gain (Loss) Reclassified from Accumulated

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Recognized in Net Income

Six Months Ended June 30, Gain (Loss) Recognized in Accumulated

Nine Months Ended September 30, Gain (Loss) Recognized in Accumulated

Other Comprehensive Loss Classification of Gain (Loss) Gain (Loss) Reclassified from Accumulated

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Foreign currency contracts $ 8.1 Cost of goods sold $ 4.2 $ 4,970.7

(1) The outstanding contracts as of June 30, 2021 range in maturity through December 2021.

(2) The outstanding contracts as of June 30, 2021 range in maturity through January 2022.

The following table summarizes the activity in accumulated other comprehensive loss related to the derivatives held by the Company during the six months ended June 30, 2021 (in millions):

(1) The outstanding contracts as of September 30, 2021 range in maturity through December 2021.

(2) The outstanding contracts as of September 30, 2021 range in maturity through July 2022.

The following table summarizes the activity in accumulated other comprehensive loss related to the derivatives held by the Company during the three months ended September 30, 2021 (in millions):

Before-Tax Amount Income Tax After-Tax Amount

Accumulated derivative net losses as of December 31, 2020 $ ( 3.0 ) $ ( 0.5 ) $ ( 2.5 )

Net changes in fair value of derivatives 9.6 3.5 6.1

Net losses reclassified from accumulated other comprehensive loss into income 5.0 0.8 4.2

Accumulated derivative net gains as of June 30, 2021 $ 11.6 $ 3.8 $ 7.8

A s of June 30, 2021, approximately $ 0.5 million of derivative net losses and approximately $ 5.0 million of derivatives net gains, before taxes, remain in accumulated other comprehensive loss held by the Company related to foreign currency contracts and commodity contracts, respectively, as the inventory associated with the losses and gains had not yet been sold.

Net changes in fair value of derivatives 1.9 0.3 1.6

Net gains reclassified from accumulated other comprehensive loss into income ( 7.0 ) ( 2.0 ) ( 5.0 )

Accumulated derivative net gains as of September 30, 2021 $ 6.5 $ 2.1 $ 4.4

Notes to Condensed Consolidated Financial Statements - Continued

The following table summarizes the activity in accumulated other comprehensive loss related to the derivatives held by the Company during the nine months ended September 30, 2021 (in millions):

Before-Tax Amount Income Tax After-Tax Amount

Accumulated derivative net losses as of December 31, 2020 $ ( 3.0 ) $ ( 0.5 ) $ ( 2.5 )

Net changes in fair value of derivatives 11.5 3.8 7.7

Net gains reclassified from accumulated other comprehensive loss into income ( 2.0 ) ( 1.2 ) ( 0.8 )

Accumulated derivative net gains as of September 30, 2021 $ 6.5 $ 2.1 $ 4.4

A s of September 30, 2021, approximately $ 0.7 million of derivative net losses and approximately $ 5.5 million of derivatives net gains, before taxes, remain in accumulated other comprehensive loss held by the Company related to foreign currency contracts and commodity contracts, respectively, as the inventory associated with the losses and gains had not yet been sold.

Net Investment Hedges

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The cross currency swap has an expiration date of January 29, 2028.

At maturity of the cross currency swap contract, the Company will deliver the notional amount of approximately € 247.9 million (or approximately $ 294.3 million as of June 30, 2021) and will receive $ 300.0 million from the counterparties.

At maturity of the cross currency swap contract, the Company will deliver the notional amount of approximately € 247.9 million (or approximately $ 287.3 million as of September 30, 2021) and will receive $ 300.0 million from the counterparties.

The Company will receive quarterly interest payments from the counterparties based on a fixed interest rate until the maturity of the cross currency swap.

3 unchanged sentences

Notional Amount as of

June 30, 2021 December 31, 2020

September 30, 2021 December 31, 2020

Cross currency swap contract $ 300.0 $ 300.0

The following table summarizes the after-tax impact of changes in the fair value of the instrument designated as a net investment hedge during the three and six months ended June 30, 2021 and 2020 (in millions):

Notes to Condensed Consolidated Financial Statements - Continued

The following table summarizes the after-tax impact of changes in the fair value of the instrument designated as a net investment hedge during the three and nine months ended September 30, 2021 and 2020 (in millions):

Gain (Loss) Recognized in Accumulated

Other Comprehensive Loss for the Three Months Ended Gain (Loss) Recognized in Accumulated

Other Comprehensive Loss for the Six Months Ended

June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020

Other Comprehensive Loss for the Nine Months Ended

September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020

Cross currency swap contract $ 5.8 $ ( 13.3 ) $ 5.5 $ ( 11.8 )

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These contracts were classified as non-designated derivative instruments.

Gains and losses on such

Notes to Condensed Consolidated Financial Statements - Continued

contracts are substantially offset by losses and gains on the remeasurement of the underlying asset or liability being hedged and are immediately recognized into earnings.

As of June 30, 2021 and December 31, 2020, the Company had outstanding foreign currency contracts with a notional amount of approximately $ 3,107.2 million and $ 3,326.6 million, respectively.

Gains and losses on such contracts are substantially offset by losses and gains on the remeasurement of the underlying asset or liability being hedged and are immediately recognized into earnings.

As of September 30, 2021 and December 31, 2020, the Company had outstanding foreign currency contracts with a notional amount of approximately $ 3,390.6 million and $ 3,326.6 million, respectively.

The following table summarizes the impact that changes in the fair value of derivatives not designated as hedging instruments had on net income (in millions):

Loss Recognized in Net Income for the Three Months Ended Gain Recognized in Net Income for the Six Months Ended

Loss Recognized in Net Income for the Three Months Ended Gain Recognized in Net Income for the Nine Months Ended

Classification of Gain (Loss)

June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020

September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020

Foreign currency contracts Other expense, net $ ( 1.7 ) $ ( 7.0 ) $ 27.6 $ 16.1

The table below sets forth the fair value of derivative instruments as of June 30, 2021 (in millions):

The table below sets forth the fair value of derivative instruments as of September 30, 2021 (in millions):

Asset Derivatives as of

June 30, 2021 Liability Derivatives as of

June 30, 2021

September 30, 2021 Liability Derivatives as of

September 30, 2021

Balance Sheet Location Fair Value Balance Sheet Location Fair Value

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Total derivative instruments $ 25.0 $ 12.5

Notes to Condensed Consolidated Financial Statements - Continued

The table below sets forth the fair value of derivative instruments as of December 31, 2020 (in millions):

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CHANGES IN STOCKHOLDERS’ EQUITY

The following tables set forth changes in stockholders’ equity attributed to AGCO Corporation and its subsidiaries and to noncontrolling interests for the three and six months ended June 30, 2021 (in millions):

The following tables set forth changes in stockholders’ equity attributed to AGCO Corporation and its subsidiaries and to noncontrolling interests for the three and nine months ended September 30, 2021 (in millions):

Stock Additional

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Interests Total Stockholders’

Balance, March 31, 2021 $ 0.8 $ 5.7 $ 4,897.9 $ ( 1,817.9 ) $ 38.2 $ 3,124.7

Balance, June 30, 2021 $ 0.8 $ 11.7 $ 4,864.1 $ ( 1,738.3 ) $ 26.5 $ 3,164.8

Stock compensation — 5.9 — — — 5.9

2 unchanged sentences

Net income — — 181.3 — 1.1 182.4

Other comprehensive income, net of reclassification adjustments:

Other comprehensive loss, net of reclassification adjustments:

Foreign currency translation adjustments

1 unchanged sentence

Defined benefit pension plans, net of tax — — — 2.6 — 2.6

— — — ( 6.0 ) — ( 6.0 )

Deferred gains and losses on derivatives, net of tax

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Payment of dividends to stockholders — — ( 15.0 ) — — ( 15.0 )

— — ( 316.6 ) — — ( 316.6 )

Distributions to noncontrolling interest — — — — ( 3.5 ) ( 3.5 )

Change in noncontrolling interest

Purchases and retirement of common stock

( 0.1 ) ( 13.5 ) ( 61.4 ) — — ( 75.0 )

Balance, June 30, 2021 $ 0.8 $ 11.7 $ 4,864.1 $ ( 1,738.3 ) $ 26.5 $ 3,164.8

Balance, September 30, 2021 $ 0.7 $ 3.6 $ 4,969.0 $ ( 1,804.5 ) $ 27.6 $ 3,196.4

Stock Additional

12 unchanged sentences

Foreign currency translation adjustments — — — ( 32.3 ) 0.4 ( 31.9 )

— — — 33.1 0.4 33.5

Defined benefit pension plans, net of tax — — — 31.7 — 31.7

— — — 29.1 — 29.1

Deferred gains and losses on derivatives, net of tax — — — 6.9 — 6.9

— — — 10.3 — 10.3

Payment of dividends to stockholders — — ( 343.6 ) — — ( 343.6 )

— — ( 328.6 ) — — ( 328.6 )

Purchases and retirement of common stock ( 0.1 ) ( 13.5 ) ( 61.4 ) — — ( 75.0 )

Distributions to noncontrolling interest — — — — ( 3.5 ) ( 3.5 )

Change in noncontrolling interest — — — — ( 10.6 ) ( 10.6 )

Balance, June 30, 2021 $ 0.8 $ 11.7 $ 4,864.1 $ ( 1,738.3 ) $ 26.5 $ 3,164.8

Balance, September 30, 2021 $ 0.7 $ 3.6 $ 4,969.0 $ ( 1,804.5 ) $ 27.6 $ 3,196.4

Notes to Condensed Consolidated Financial Statements - Continued

Stock Additional

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Interests Total Stockholders’

Balance, March 31, 2020 $ 0.8 $ — $ 4,432.7 $ ( 1,791.4 ) $ 48.5 $ 2,690.6

Balance, June 30, 2020 $ 0.8 $ 10.1 $ 4,490.4 $ ( 1,825.2 ) $ 41.4 $ 2,717.5

Stock compensation — 14.1 — — — 14.1

Issuance of stock awards

— ( 0.1 ) — — — ( 0.1 )

Comprehensive loss:

Net income (loss) — — 69.7 — ( 9.7 ) 60.0

Comprehensive income:

Net income — — 157.3 — 0.8 158.1

Other comprehensive loss, net of reclassification adjustments:

8 unchanged sentences

Changes in noncontrolling interests — — — — 0.2 0.2

Balance, June 30, 2020 $ 0.8 $ 10.1 $ 4,490.4 $ ( 1,825.2 ) $ 41.4 $ 2,717.5

Balance, September 30, 2020 $ 0.8 $ 24.2 $ 4,635.7 $ ( 1,851.0 ) $ 40.2 $ 2,849.9

Stock Additional

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Change in noncontrolling interest — — — — ( 0.3 ) ( 0.3 )

Balance, June 30, 2020 $ 0.8 $ 10.1 $ 4,490.4 $ ( 1,825.2 ) $ 41.4 $ 2,717.5

Balance, September 30, 2020 $ 0.8 $ 24.2 $ 4,635.7 $ ( 1,851.0 ) $ 40.2 $ 2,849.9

Notes to Condensed Consolidated Financial Statements - Continued

Total comprehensive income (loss) attributable to noncontrolling interests for the three and six months ended June 30, 2021 and 2020 was as follows (in millions):

Three Months Ended June 30, Six Months Ended June 30,

Total comprehensive income (loss) attributable to noncontrolling interests for the three and nine months ended September 30, 2021 and 2020 was as follows (in millions):

Three Months Ended September 30, Nine Months Ended September 30,

2021 2020 2021 2020

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Total comprehensive income (loss) $ 1.1 $ ( 1.4 ) $ 3.7 $ ( 12.7 )

The following table sets forth changes in accumulated other comprehensive loss by component, net of tax, attributed to AGCO Corporation and its subsidiaries for the six months ended June 30, 2021 (in millions):

Defined Benefit Pension Plans Deferred Net Gains (Losses) on Derivatives Cumulative Translation Adjustment Total

The following table sets forth changes in accumulated other comprehensive loss by component, net of tax, attributed to AGCO Corporation and its subsidiaries for the nine months ended September 30, 2021 (in millions):

Defined Benefit Pension Plans Deferred Net (Losses) Gains on Derivatives Cumulative Translation Adjustment Total

Accumulated other comprehensive loss, December 31, 2020 $ ( 313.3 ) $ ( 2.5 ) $ ( 1,495.0 ) $ ( 1,810.8 )

Other comprehensive income (loss) before reclassifications 23.2 7.7 ( 32.3 ) ( 1.4 )

Net losses reclassified from accumulated other comprehensive loss 5.9 4.2 — 10.1

Net losses (gains) reclassified from accumulated other comprehensive loss 8.5 ( 0.8 ) — 7.7

Other comprehensive income (loss), net of reclassification adjustments 31.7 6.9 ( 32.3 ) 6.3

Accumulated other comprehensive loss, June 30, 2021 $ ( 284.2 ) $ 7.8 $ ( 1,461.9 ) $ ( 1,738.3 )

The following table sets forth reclassification adjustments out of accumulated other comprehensive loss by component attributed to AGCO Corporation and its subsidiaries for the three months ended June 30, 2021 and 2020 (in millions):

Accumulated other comprehensive loss, September 30, 2021 $ ( 281.6 ) $ 4.4 $ ( 1,527.3 ) $ ( 1,804.5 )

Amount Reclassified from Accumulated Other Comprehensive Loss Affected Line Item within the Condensed Consolidated

Statements of Operations

Details about Accumulated Other Comprehensive Loss Components Three Months Ended June 30, 2021 (1)

Three Months Ended June 30, 2020 (1)

Details about Accumulated Other Comprehensive Loss Components Three Months Ended September 30, 2021 (1)

Three Months Ended September 30, 2020 (1)

Net losses (gains) on foreign currency contracts $ 1.5 $ ( 1.2 ) Cost of goods sold

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Reclassification net of tax $ 2.6 $ 3.4

Net losses reclassified from accumulated other comprehensive loss $ 2.5 $ 0.3

(1) Losses (gains) included within the Condensed Consolidated Statements of Operations for the three months ended June 30, 2021 and 2020, respectively.

Net (gains) losses reclassified from accumulated other comprehensive loss $ ( 2.4 ) $ 2.4

(1) (Gains) losses included within the Condensed Consolidated Statements of Operations for the three months ended September 30, 2021 and 2020, respectively.

(2) These accumulated other comprehensive loss components are included in the computation of net periodic pension and postretirement benefit cost.

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Notes to Condensed Consolidated Financial Statements - Continued

The following table sets forth reclassification adjustments out of accumulated other comprehensive loss by component attributed to AGCO Corporation and its subsidiaries for the six months ended June 30, 2021 and 2020 (in millions):

The following table sets forth reclassification adjustments out of accumulated other comprehensive loss by component attributed to AGCO Corporation and its subsidiaries for the nine months ended September 30, 2021 and 2020 (in millions):

Amount Reclassified from Accumulated Other Comprehensive Loss Affected Line Item within the Condensed Consolidated

Statements of Operations

Details about Accumulated Other Comprehensive Loss Components Six Months Ended June 30, 2021 (1)

Six Months Ended June 30, 2020 (1)

Details about Accumulated Other Comprehensive Loss Components Nine Months Ended September 30, 2021 (1)

Nine Months Ended September 30, 2020 (1)

Net losses (gains) on foreign currency contracts $ 8.4 $ ( 4.4 ) Cost of goods sold

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Reclassification net of tax (3)

Net losses (gains) reclassified from accumulated other comprehensive loss $ 10.1 $ 3.7

(1) Losses (gains) included within the Condensed Consolidated Statements of Operations for the six months ended June 30, 2021 and 2020, respectively.

Net losses reclassified from accumulated other comprehensive loss $ 7.7 $ 6.1

(1) Losses included within the Condensed Consolidated Statements of Operations for the nine months ended September 30, 2021 and 2020, respectively.

(2) These accumulated other comprehensive loss components are included in the computation of net periodic pension and postretirement benefit cost.

See Note 15 for additional information on the Company’s defined benefit pension plans.

(3) During the nine months ended September 30, 2021, the Company amended its ENPP.

The amendment resulted in a net gain of approximately $ 23.2 million, after tax, recognized in "Accumulated other comprehensive loss" in the Company's Condensed Balance Sheets.

See Note 15 for additional information regarding the Company's defined benefit pension plans.

Share Repurchase Program

During the three and six months ended June 30, 2021, the Company did not purchase any shares directly or enter into any accelerated share repurchase agreements.

As of June 30, 2021, the remaining amount authorized to be repurchased under board-approved share repurchase authorizations was approximately $ 245.0 million, which has no expiration date.

In August 2021, the Company entered into an ASR agreement with a financial institution to repurchase an aggregate of $ 75.0 million of shares of its common stock.

The Company received approximately 455,000 shares to date in this transaction.

The Company received 558,471 shares to date in this transaction.

All shares received under the ASR agreements were retired upon receipt, and the excess of the purchase price over par value per share was recorded to a combination of “Additional paid-in capital” and “Retained earnings” within the Company’s Condensed Consolidated Balance Sheets.

As of September 30, 2021, the remaining amount authorized to be repurchased under board-approved share repurchase authorizations was approximately $ 170.0 million, which has no expiration date.

In November 2021, the Company entered into an ASR agreement with a financial institution to repurchase an aggregate of $ 60.0 million shares of its common stock.

The Company received 393,733 shares to date in this transaction.

The specific number of shares the Company will ultimately repurchase will be determined at the completion of the term of the ASR based on the daily volume-weighted average share price of the Company’s common stock less an agreed upon discount.

Upon settlement of the ASR, the Company may be entitled to receive additional shares of common stock or, under certain circumstances, be required to remit a settlement amount.

The Company expects that the additional shares will be received by the Company upon final settlement of its current ASR agreement, which expires during the fourth quarter of 2021.

The Company expects that additional shares will be received by the Company upon final settlement of its current ASR agreement, which expires during the first quarter of 2022.

All shares received under the ASR agreement discussed above were retired upon receipt and the excess of the purchase price over par value per share was recorded to a combination of “Additional paid-in capital” and “Retained earnings” within the Company’s Condensed Consolidated Balance Sheets.

Notes to Condensed Consolidated Financial Statements - Continued

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The Company has accounts receivable sales agreements that permit the sale, on an ongoing basis, of a majority of its wholesale receivables in North America, Europe and Brazil to its U.S., Canadian, European and Brazilian finance joint ventures.

As of June 30, 2021 and December 31, 2020, the cash received from receivables sold under the U.S., Canadian, European and Brazilian accounts receivable sales agreements was approximately $ 1.4 billion and $ 1.5 billion, respectively.

As of September 30, 2021 and December 31, 2020, the cash received from receivables sold under the U.S., Canadian, European and Brazilian accounts receivable sales agreements was approximately $ 1.3 billion and $ 1.5 billion, respectively.

Under the terms of the accounts receivable sales agreements in North America, Europe and Brazil, the Company pays an annual fee related to the servicing of the receivables sold.

The Company also pays the respective AGCO Finance entities a subsidized interest payment with respect to the accounts receivable sales agreements, calculated based upon LIBOR plus a margin on any non-interest bearing accounts receivable outstanding and sold under the accounts receivable sales agreements.

Following the phase out of LIBOR-denominated rates, the Company expects this funding to be based upon the interest rate charged by Rabobank to its affiliate, which, in turn, such affiliate then lends to the AGCO Finance entities plus an agreed-upon margin.

These fees are reflected within losses on the sales of receivables included within “Other expense, net” in the Company’s Condensed Consolidated Statements of Operations.

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The Company accounts for the receivable sales agreements as off-balance sheet transactions.

Losses on sales of receivables associated with the accounts receivable sales agreements discussed above, reflected within “Other expense, net” in the Company’s Condensed Consolidated Statements of Operations, were approximately $ 5.1 million and $ 9.7 million, respectively, during the three and six months ended June 30, 2021.

Losses on sales of receivables associated with the accounts receivable sales agreements discussed above, reflected within “Other expense, net” in the Company’s Condensed Consolidated Statements of Operations, were approximately $ 4.3 million and $ 12.4 million, respectively, during the three and six ended June 30, 2020.

Losses on sales of receivables associated with the accounts receivable sales agreements discussed above, reflected within “Other expense, net” in the Company’s Condensed Consolidated Statements of Operations, were approximately $ 7.4 million and $ 17.1 million, respectively, during the three and nine months ended September 30, 2021.

Losses on sales of receivables associated with the accounts receivable sales agreements discussed above, reflected within “Other expense, net” in the Company’s Condensed Consolidated Statements of Operations, were approximately $ 6.1 million and $ 18.5 million, respectively, during the three and nine ended September 30, 2020.

The Company’s finance joint ventures in Europe, Brazil and Australia also provide wholesale financing directly to the Company’s dealers.

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The Company does not service the receivables after the sale occurs and does not maintain any direct retained interest in the receivables.

As of June 30, 2021 and December 31, 2020, these finance joint ventures had approximately $ 82.7 million and $ 85.2 million, respectively, of outstanding accounts receivable associated with these arrangements.

As of September 30, 2021 and December 31, 2020, these finance joint ventures had approximately $ 67.0 million and $ 85.2 million, respectively, of outstanding accounts receivable associated with these arrangements.

The Company accounts for these arrangements as off-balance sheet transactions.

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PENSION AND POSTRETIREMENT BENEFIT PLANS

Net periodic pension and postretirement benefit cost for the Company’s defined pension and postretirement benefit plans for the three and six months ended June 30, 2021 and 2020 are set forth below (in millions):

Three Months Ended June 30, Six Months Ended June 30,

Net periodic pension and postretirement benefit cost for the Company’s defined pension and postretirement benefit plans for the three and nine months ended September 30, 2021 and 2020 are set forth below (in millions):

Three Months Ended September 30, Nine Months Ended September 30,

Pension benefits 2021 2020 2021 2020

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Net periodic pension cost $ 2.3 $ 4.9 $ 7.6 $ 14.7

(1) During the six months ended June 30, 2021, the Company amended its Executive Nonqualified Pension Plan (“ENPP”) to freeze the plan as of December 31, 2024 to future salary benefit accruals, and to eliminate a life-time annuity feature for participants reaching age 65 subsequent to December 31, 2022.

(1) During the nine months ended September 30, 2021, the Company amended its Executive Nonqualified Pension Plan (“ENPP”) to freeze the plan as of December 31, 2024 to future salary benefit accruals, and to eliminate a life-time annuity feature for participants reaching age 65 subsequent to December 31, 2022.

This amendment resulted in a curtailment gain related to the ENPP's net prior service credit.

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

Postretirement benefits 2021 2020 2021 2020

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The components of net periodic pension and postretirement benefits cost, other than the service cost component, are included in “Other expense, net” in the Company’s Condensed Consolidated Statements of Operations.

The following table summarizes the activity in accumulated other comprehensive loss related to the Company’s defined pension and postretirement benefit plans during the six months ended June 30, 2021 (in millions):

The following table summarizes the activity in accumulated other comprehensive loss related to the Company’s defined pension and postretirement benefit plans during the nine months ended September 30, 2021 (in millions):

Before-Tax Amount Income Tax After-Tax Amount

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31.2 8.0 23.2

Accumulated other comprehensive loss as of June 30, 2021 $ ( 373.3 ) $ ( 89.1 ) $ ( 284.2 )

(1) During the six months ended June 30, 2021, the Company amended its ENPP.

Accumulated other comprehensive loss as of September 30, 2021 $ ( 369.8 ) $ ( 88.2 ) $ ( 281.6 )

(1) During the nine months ended September 30, 2021, the Company amended its ENPP.

The amendment resulted in a remeasurement gain of approximately $ 10.5 million as well as the impacts of approximately $ 12.2 million due to the elimination a life-time annuity feature and approximately $ 9.7 million due to the freezing of future salary benefits, partially offset by a curtailment gain of approximately $ 1.2 million.

During the six months ended June 30, 2021, the Company made approximately $ 20.0 million of contributions to its defined pension benefit plans.

The after-tax impact of the aggregate of these items was approximately $ 23.2 million.

During the nine months ended September 30, 2021, the Company made approximately $ 28.3 million of contributions to its defined pension benefit plans.

The Company currently estimates its minimum contributions for 2021 to its defined pension benefit plans will aggregate approximately $ 36.6 million.

During the six months ended June 30, 2021, the Company made approximately $ 0.6 million of contributions to its postretirement health care and life insurance benefit plans.

During the nine months ended September 30, 2021, the Company made approximately $ 1.0 million of contributions to its postretirement health care and life insurance benefit plans.

The Company currently estimates that it will make approximately $ 1.5 million of contributions to its postretirement health care and life insurance benefit plans during 2021.

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See Note 12 for additional information on the Company’s derivative instruments and hedging activities.

Assets and liabilities measured at fair value on a recurring basis as of June 30, 2021 and December 31, 2020 are summarized below (in millions):

As of June 30, 2021

Assets and liabilities measured at fair value on a recurring basis as of September 30, 2021 and December 31, 2020 are summarized below (in millions):

As of September 30, 2021

Level 1 Level 2 Level 3 Total

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See Note 6 for additional information on the Company’s long-term debt.

RELATED PARTIES

The Company has a minority equity interest in Tractors and Farm Equipment Limited (“TAFE”), which manufactures and sells Massey Ferguson-branded equipment primarily in India, and also supplies tractors and components to the Company for sale in other markets.

On October 15, 2020, TAFE repurchased 461,000 shares of its common stock from the Company for approximately $ 33.9 million, resulting in an approximate remaining 20.7 % ownership interest.

Mallika Srinivasan, who is the Chairman and Managing Director of TAFE, is currently a member of the Company’s Board of Directors.

Notes to Condensed Consolidated Financial Statements - Continued

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As a result, the components of income from operations for one segment may not be comparable to another segment.

Segment results for the three and six months ended June 30, 2021 and 2020 and assets as of June 30, 2021 and December 31, 2020 based on the Company’s reportable segments are as follows (in millions):

Three Months Ended June 30, North America South America Europe/Middle East Asia/Pacific/Africa Consolidated

Segment results for the three and nine months ended September 30, 2021 and 2020 and assets as of September 30, 2021 and December 31, 2020 based on the Company’s reportable segments are as follows (in millions):

Three Months Ended September 30, North America South America Europe/Middle East Asia/Pacific/Africa Consolidated

Net sales $ 638.7 $ 383.3 $ 1,462.4 $ 240.7 $ 2,725.1

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Capital expenditures 9.2 2.9 52.8 0.7 65.6

Six Months Ended June 30, North America South America Europe/Middle East Asia/Pacific/Africa Consolidated

Nine Months Ended September 30, North America South America Europe/Middle East Asia/Pacific/Africa Consolidated

Net sales $ 1,984.5 $ 902.1 $ 4,424.8 $ 671.7 $ 7,983.1

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Net sales $ 1,689.9 $ 606.3 $ 3,644.2 $ 492.2 $ 6,432.6

Income (loss) from operations 125.6 ( 3.3 ) 193.3 12.7 328.3

Income from operations 183.9 13.4 380.8 36.5 614.6

Depreciation 46.2 19.6 79.0 10.1 154.9

Capital expenditures 27.5 13.3 137.3 5.0 183.1

As of June 30, 2021 $ 1,289.6 $ 833.3 $ 2,695.0 $ 587.0 $ 5,404.9

As of September 30, 2021 $ 1,321.6 $ 854.4 $ 2,605.6 $ 633.1 $ 5,414.7

As of December 31, 2020 1,051.9 687.6 2,238.7 536.2 4,514.4

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A reconciliation from the segment information to the consolidated balances for income from operations and total assets is set forth below (in millions):

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2021 2020 2021 2020

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Consolidated income from operations $ 251.9 $ 224.0 $ 737.4 $ 421.7

June 30, 2021 December 31, 2020

September 30, 2021 December 31, 2020

Segment assets $ 5,414.7 $ 4,514.4

Cash and cash equivalents 500.2 1,119.1

Cash, cash equivalents and restricted cash 537.0 1,119.1

Investments in affiliates 480.4 442.7

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The Company believes that any losses that it might incur on the resale of this equipment will not be material, due to the fair value of the underlying equipment.

At June 30, 2021, the Company has outstanding guarantees of indebtedness owed to related and third parties of approximately $ 19.3 million, primarily related to dealer and end-user financing of equipment.

At September 30, 2021, the Company has outstanding guarantees of indebtedness owed to related and third parties of approximately $ 23.2 million, primarily related to dealer and end-user financing of equipment.

Such guarantees generally obligate the Company to repay outstanding finance obligations owed to financial institutions if dealers or end users default on such loans through 2026.

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The Company believes the credit risk associated with these guarantees is not material.

In addition, at June 30, 2021, the Company had accrued approximately $ 24.9 million of outstanding guarantees of residual values that may be owed to its finance joint ventures in the United States and Canada due upon expiration of certain eligible operating leases between the finance joint ventures and end users.

The maximum potential amount of future payments under the guarantees is approximately $ 130.6 million.

Lease payment amounts for operating and finance leases with remaining terms greater than one year as of June 30, 2021 and December 31, 2020 were as follows (in millions):

June 30, 2021 December 31, 2020

In addition, at September 30, 2021, the Company had accrued approximately $ 24.3 million of outstanding guarantees of residual values that may be owed to its finance joint ventures in the United States and Canada due upon expiration of certain eligible operating leases between the finance joint ventures and end users.

The maximum potential amount of future payments under these guarantees is approximately $ 142.1 million.

Lease payment amounts for operating and finance leases with remaining terms greater than one year as of September 30, 2021 and December 31, 2020 were as follows (in millions):

September 30, 2021 December 31, 2020

Operating Leases (1)

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(2) Calculated for each lease using either the implicit interest rate or the incremental borrowing rate when the implicit interest rate is not readily available.

At June 30, 2021, the Company had outstanding designated and non-designated foreign exchange contracts with a gross notional amount of approximately $ 3,489.2 million.

The outstanding contracts as of June 30, 2021 range in maturity through December 2021.

The Company also had outstanding designated steel commodity contracts with a gross notional amount of approximately $ 16.5 million that range in maturity through January 2022.

At September 30, 2021, the Company had outstanding designated and non-designated foreign exchange contracts with a gross notional amount of approximately $ 3,683.6 million.

The outstanding contracts as of September 30, 2021 range in maturity through December 2021.

The Company also had outstanding designated steel commodity contracts with a gross notional amount of approximately $ 11.9 million that range in maturity through July 2022.

Notes to Condensed Consolidated Financial Statements - Continued

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In August 2008, as part of routine audits, the Brazilian taxing authorities disallowed deductions relating to the amortization of certain goodwill recognized in connection with a reorganization of the Company’s Brazilian operations and the related transfer of certain assets to the Company’s Brazilian subsidiaries.

The amount of the tax disallowance through June 30, 2021, not including interest and penalties, was approximately 131.5 million Brazilian reais (or approximately $ 26.3 million).

The amount of the tax disallowance through September 30, 2021, not including interest and penalties, was approximately 131.5 million Brazilian reais (or approximately $ 24.2 million).

The amount ultimately in dispute will be significantly greater because of interest and penalties.

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(1) unrecognized revenues where advance payment of consideration precedes the Company’s performance with respect to extended warranty and maintenance contracts and where the performance obligation is satisfied over time, (2) unrecognized revenues where advance payment of consideration precedes the Company’s performance with respect to certain grain storage and protein production systems and where the performance obligation is satisfied over time and (3) unrecognized revenues where advance payment of consideration precedes the Company’s performance with respect to technology services and where the performance obligation is satisfied over time.

Significant changes in the balance of contract liabilities for the three and six months ended June 30, 2021 and 2020 were as follows (in millions):

Three Months Ended June 30,

Significant changes in the balance of contract liabilities for the three and nine months ended September 30, 2021 and 2020 were as follows (in millions):

Three Months Ended September 30,

Balance at beginning of period $ 201.2 $ 118.7

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Foreign currency translation ( 3.5 ) 4.7

Balance at June 30 $ 201.2 $ 118.7

Balance at September 30 $ 209.4 $ 144.9

Notes to Condensed Consolidated Financial Statements - Continued

Six Months Ended June 30,

Nine Months Ended September 30,

Balance at beginning of period $ 172.0 $ 104.0

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Foreign currency translation ( 4.3 ) 0.9

Balance at June 30 $ 201.2 $ 118.7

Balance at September 30 $ 209.4 $ 144.9

The contract liabilities are classified as either “Accrued expenses” or “Other current liabilities” and “Other noncurrent liabilities” in the Company’s Condensed Consolidated Balance Sheets.

During the three and six months ended June 30, 2021, we recognized approximately $ 17.4 million and $ 43.2 million, respectively, of revenue that was recorded as a contract liability at the beginning of 2021.

During the three and six months ended June 30, 2020, we recognized approximately $ 13.8 million and $ 25.8 million, respectively, of revenue that was recorded as a contract liability at the beginning of 2020.

During the three and nine months ended September 30, 2021, we recognized approximately $ 18.7 million and $ 61.9 million, respectively, of revenue that was recorded as a contract liability at the beginning of 2021.

During the three and nine months ended September 30, 2020, we recognized approximately $ 10.5 million and $ 36.3 million, respectively, of revenue that was recorded as a contract liability at the beginning of 2020.

Remaining Performance Obligations

The estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of June 30, 2021 are $ 30.6 million for the remainder of 2021, $ 63.0 million in 2022, $ 44.6 million in 2023, $ 21.4 million in 2024 and $ 12.9 million thereafter, and relate primarily to extended warranty contracts.

The estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of September 30, 2021 are $ 17.1 million for the remainder of 2021, $ 66.7 million in 2022, $ 51.9 million in 2023, $ 27.1 million in 2024 and $ 18.0 million thereafter, and relate primarily to extended warranty contracts.

The Company applied the practical expedient in ASU 2014-09 and has not disclosed information about remaining performance obligations that have original expected durations of 12 months or less.

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Disaggregated Revenue

Net sales for the three months ended June 30, 2021 disaggregated by primary geographical markets and major products consisted of the following (in millions):

North America (1)

South America (1)

Europe/Middle East (1)

Asia/Pacific/Africa Consolidated (1)

Net sales for the three months ended September 30, 2021 disaggregated by primary geographical markets and major products consisted of the following (in millions):

North America South America (1)

Europe/Middle East Asia/Pacific/Africa (1)

Primary geographical markets:

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Notes to Condensed Consolidated Financial Statements - Continued

Net sales for the three months ended June 30, 2020 disaggregated by primary geographical markets and major products consisted of the following (in millions):

North America South America (1)

Europe/Middle East Asia/Pacific/Africa Consolidated (1)

Net sales for the three months ended September 30, 2020 disaggregated by primary geographical markets and major products consisted of the following (in millions):

North America South America Europe/Middle East Asia/Pacific/Africa Consolidated

Primary geographical markets:

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$ 582.2 $ 273.9 $ 1,405.9 $ 235.5 $ 2,497.5

(1) Rounding may impact the summation of amounts.

Notes to Condensed Consolidated Financial Statements - Continued

Net sales for the six months ended June 30, 2021 disaggregated by primary geographical markets and major products consisted of the following (in millions):

North America (1)

South America Europe/Middle East Asia/Pacific/Africa Consolidated (1)

Net sales for the nine months ended September 30, 2021 disaggregated by primary geographical markets and major products consisted of the following (in millions):

North America South America (1)

Europe/Middle East Asia/Pacific/Africa (1)

Primary geographical markets:

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Notes to Condensed Consolidated Financial Statements - Continued

Net sales for the six months ended June 30, 2020 disaggregated by primary geographical markets and major products consisted of the following (in millions):

Net sales for the nine months ended September 30, 2020 disaggregated by primary geographical markets and major products consisted of the following (in millions):

North America South America Europe/Middle East (1)

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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-Q

Item 1. Financial Statements